Table of Contents
Agenda 2 Agenda Items 6a. Register of Audited Demands 9 6b1. Reso.20-07,Tri-Events Triathlon Agreement 17 6b2. Declaration of Weeds 25 6b3. Reso.20-09, Tabacco Grant 39 6c. Ord.1090, Hillcrest Zone Change 45 7. Hillcrest Vacation 49 8. Comprehensive Annual Financial Report 63
1 CITY OF LA VERNE CITY COUNCIL AGENDA
Don Kendrick, Mayor www.cityoflaverne.org (909) 596-8726 - Phone Charlie Rosales, Mayor Pro Tem (909) 596-8740 - Fax Robin Carder, Council Member City Hall Council Chamber Muir Davis, Council Member 3660 D Street Tim Hepburn, Council Member La Verne, CA 91750
Monday, February 03, 2020 - 6:30 p.m. City Hall Council Chambers 3660 D Street, La Verne, CA 91750
Attendance and participation at the City of La Verne Council meetings are welcomed and appreciated. Community engagement provides the City Council with valuable information. Regular Meetings are held on the 1st and 3rd Monday of every month. In compliance with the American Disabilities Act, any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the City Clerk’s Office at (909) 596-8726 at least 48 hours prior to the meeting.
Individuals may contact the City Clerk’s Office for guidance on how to request an item to be added to a future Agenda. Materials related to an item on this agenda, submitted to the Council after distribution of the agenda packet, are available for public inspection at the meeting or in the City Clerk’s Office during normal business hours.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL: Council Member Carder, Council Member Davis, Council Member Hepburn, Mayor Pro Tem Rosales and Mayor Kendrick.
2 AGENDA, La Verne City Council Meeting, Monday, February 03, 2020, Page 2
4. PRESENTATIONS
a. Badge Pinning Ceremony for the following Police Officers:
Lieutenant Jason Prows - Jason is a graduate of Bonita High School and began working for the City of La Verne when he was 16 as a Recreation Leader in 1990. In 1992, he started his law enforcement career as a police explorer. In 2005, he became a Police Officer and has held the rank of Officer, Corporal, Detective, Sergeant, and now Lieutenant. Jason has a gift for understanding new technology and is currently the department expert on our radio system which encompasses many agencies across Los Angeles County. Jason’s mother Mischell will pin his badge.
Sergeant Joshua Wells – Joshua “Josh: began his career with the La Verne Police Department as a Police Aide in 2000. In 2002, he graduated from the San Bernardino Sheriff’s Academy with honors and became a Police Officer. Since then, he has worked as a Patrol Officer, Field Training Officer, and a Motor Officer. In 2006, he promoted to the rank of Corporal and was also selected as a member of the regional SWAT team. In 2010, he was selected to represent the police department as a Task Force Officer and Police K9 handler with LA IMPACT. Throughout his career, he has been recognized and received various awards for outstanding police work. Joshua holds a Bachelor’s Degree in Criminal Justice Management from Union Institute. Pinning his badge is his wife, Kerrie joined by his daughter Ryleigh and his son, Gavin.
Corporal David Weaver - David was actively involved in Boy Scouts and football and obtained the rank of Eagle Scout. In December of 2008, he graduated with a Bachelor’s of Science Degree in Parks and Recreation Management and in 2010 he graduated with a Masters of Education Degree from Southwestern Oklahoma State University. In 2011, he joined the Elk City Police as a Patrol Officer. In 2015, David was hired by La Verne Police Department. David is currently assigned to the patrol division and is assigned as a Field Training Officer. His assignments have included Drug Recognition Expert, Racial Profiling Instructor and a Use of Force Instructor. In October 2018, David was presented with the Officer of the year award and in June 2019, he was presented with a lifesaving award for his efforts in saving the life of a La Verne business manager. David is excited to start this next chapter in his career as a Corporal with the great City of La Verne. David’s father Clint Weaver will pin his badge.
5. ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS (Any person who wishes to make a brief announcement of a future community event that is open to the general public may do so at this time).
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6. CONSENT CALENDAR (All items on the Consent Calendar are considered to be routine and will be enacted by one motion unless a member of the City Council or member of the audience requests separate discussion.) (Council Member Carder will declare a conflict of interest on Resolution No. 20-06, Weed Abatement because she is a member of the Board of Directors for a homeowners’ association that oversees property appearing on the weed abatement list. Mayor Kendrick will declare a conflict of interest on Ordinance No. 1090, Hillcrest zone change because of his involvement as real estate agent with the purchase of the Hawthorne Property and earning a small commission. Council Member Hepburn will also declare a conflict of interest on Ordinance No. 1090, Hillcrest zone change because of his recent work with Hillcrest in reviewing contractors for the construction of new homes and he was a former Hillcrest Board Member and worked on the Hawthorne Property.)
a. Register of Audited Demands
In the amount of $138,222.91, dated January 15, 2020. In the amount of $494, 891.09, dated January 22, 2020.
Staff recommends approval.
b. Resolution(s) passage and adoption recommended, as follows:
1. Resolution No. 20-07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH TRI EVENTS, INC. FOR THE 2020 LA TRI-SERIES TRIATHALON CHAMPIONSHIP and TRI EXPRESS TRIATHOLON SERIES ON March 15th, April 18th, May 9th, and October 11th, 2020. - The City Council is requested to consider a street closure for the Tri Events Triathlon Series. Tri Events Inc. has submitted a request to use portions of Puddingstone Drive for the purpose of four (4) cycling races as a part of a triathlon on Sunday, March 15th, Sunday, April 18th, Saturday, May 9th, and Sunday, October 11th, 2020. The request specifically involves the closure of the eastbound lanes of Puddingstone from Van Dusen Road to Fairplex Drive between the hours of 7:30 a.m. and 11:00 a.m. the day of the event. The races are each expected to draw up to 400 participants.
Staff recommends that the City Council adopt Resolution No. 20-07 authorizing the City Manager to execute the Agreement with Tri Events Inc. permitting the race on specified streets on the specified dates.
4 AGENDA, La Verne City Council Meeting, Monday, February 03, 2020, Page 4
2. Resolution No. 20-08 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DECLARING THAT WEEDS, BRUSH, RUBBISH AND REFUSE UPON OR IN FRONT OF SPECIFIED PROPERTY IN THE CITY ARE A SEASONAL AND RECURRENT PUBLIC NUISANCE, AND DECLARING ITS INTENTION TO PROVIDE FOR THE ABATEMENT THEREOF - Each year the County of Los Angeles Department of Agricultural Commissioner/Weights & Measures conducts inspections for weeds, brush, rubbish, and refuse on public and private property that may be considered a seasonal and recurrent nuisance. A list of properties is provided to the City for review. City Council is then required to declare its intention to provide for this abatement and set a public hearing for affected property owners to register objections to said abatement. (Council Member Carder will declare a conflict of interest because she is a member of the Board of Directors for a homeowners’ association that oversees property appearing on the weed abatement list.) Staff recommends that the Council adopt Resolution No. 20-08, declaring the intention to provide for the abatement of weeds, brush, rubbish, and refuse and setting a public hearing for Tuesday, February 18, 2019 at 6:30 pm.
3. Resolution No. 20-09 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AUTHORIZING THE CITY OF LA VERNE TO ACCEPT A GRANT IN THE AMOUNT OF $637,200 FROM THE STATE OF CALIFORNIA DEPARTMENT OF JUSTICE, OFFICE OF THE ATTORNEY GENERAL, AND THE TOBACCO LAW ENFORCEMENT GRANT PROGRAM AND ENTER INTO A RELATED MEMORANDUM OF UNDERSTANDING - The La Verne Police Department has applied for grant funding from the State of California Department of Justice (DOJ) for tobacco related enforcement and outreach programs in the City of La Verne. The Grantor requires the City to enter into a Memorandum of Understanding (MOU) and for the City Council to approve a resolution acknowledging that grant regulations and conditions contained in the MOU will be followed. Staff recommends that the City Council approve Resolution 20-09 allowing the City Manager to enter into a Memorandum of Understanding with the DOJ to receive and administer grant funding under the terms of the MOU and approve appropriations necessary to facilitate the grant program.
5 AGENDA, La Verne City Council Meeting, Monday, February 03, 2020, Page 5
c. Ordinances Second Reading, approval recommended, as follows:
Ordinance No. 1090 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING CASE NO. 27-19ZC, A REQUEST BY HILLCREST HOMES TO CHANGE THE ZONE DESIGNATION FROM “PR4.5D” TO “INSTITUTIONAL” FOR THE SITE LOCATED AT 1619 HAWTHORNE AND 2549 MAGNOLIA. – A request to construct 14 attached/detached senior homes - The Community Development Department has received an application to modify and develop Neighborhood 6 of the Brethren Hillcrest Homes (Hillcrest) Master Plan. The proposed project includes construction of 14 attached/detached senior homes with common landscaped area on approximately 1.7 acres. An existing residential dwelling unit (2548 Magnolia Avenue) constructed in 1955 will be demolished. The Project will widen Hawthorne Avenue approximately two feet to the limits of the City right-of-way and vacate the alley fronting the northern boundary of the project site. The project requires an update to the development standards of Neighborhood 6 of the Brethren Hillcrest Homes Master Plan, a Zone Change, Parcel Merger, Precise Plan Review, Street Vacation, and a General Plan Amendment to facilitate the proposed development. The City Council at its meeting of January 21, 2020, approved the zone designation by approving Ordinance No. 1090, and placing it on first reading. (Mayor Kendrick will declare a conflict of interest on this matter because of his involvement as real estate agent in with the purchase of the Hawthorne Property and earning a small commission and Council Member Hepburn will also declare a conflict of interest on this matter because of his recent work with Hillcrest in reviewing contractors for the construction of new homes and he was a former Hillcrest Board Member and worked on the Hawthorne Property.) Staff is recommending that the City Council approve Ordinance No. 1090, approving Case No. 27-19ZC, a request by Hillcrest Homes to change the Zone Designation from ‘PR4.5D to “Institutional” for 1619 Hawthorne and 2549 Magnolia.
7. PUBLIC HEARING
Case No. 90-19VAC, Hillcrest Homes - 2548 Magnolia Avenue, 2551 Park Avenue, and 1619 Hawthorne Avenue, a request to vacate an alley in conjunction with the construction of 14 attached/detached senior homes - At the last City Council meeting, the Council conditionally approved 26-19MPA, 27-19ZC, and 88-19GPA to modify and develop Neighborhood 6 of the Brethren Hillcrest Homes (Hillcrest) Master Plan. The proposed project includes construction of 14 attached/detached senior homes with common landscaped area on approximately 1.7 acres. A portion of the item was continued to this meeting to allow for the required public noticing on-site for the alley vacation. The project is proposing the City to vacate the alley fronting the northern boundary of the project site. (Mayor Kendrick will declare a conflict of interest on this matter because of his involvement as real estate agent in with the purchase of the Hawthorne Property and earning a small commission and Council Member Hepburn will declare a conflict of interest on this matter because of his recent work with Hillcrest in reviewing contractors for the construction of new homes and he was a former Hillcrest Board Member and worked on the Hawthorne Property.)
6 AGENDA, La Verne City Council Meeting, Monday, February 03, 2020, Page 6
STAFF RECOMMENDATION: The City Council should conditionally approve Case Number 90-19VAC, adopting Resolution Numbers 20-6, based on this report and the conditions of approval.
Resolution No. 20-06 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING THE SUMMARY VACATION (CASE NUMBER 90-19VAC) OF AN ALLEY BETWEEN PARK AVENUE AND MAGNOLIA STREET FOR THE PURPOSE OF HILLCREST HOMES PRIVATE USE AND APPROVING THE MITIGATED NEGATIVE DECLARATION PREPARED FOR THIS PROJECT.
8. OTHER MATTERS
Comprehensive Annual Financial Report for June 30, 2019 - The City has prepared its Comprehensive Annual Financial Report (CAFR), which has been audited by our outside independent audit firm - Rogers, Anderson, Malody & Scott, LLP (RAMS). The CAFR reflects the financial position and operating activities of the City for the fiscal year ending June 30, 2019. A full copy of the report can be accessed on the City’s website. As part of the Financial Statement audit, RAMS has issued their Report on Internal Control over Financial Reporting and on Compliance and Other Matters. This report is required for audits performed in Accordance with Government Auditing Standards. RAMS has also presented their concluding Auditor Letter to the City Council pertaining to the audited financial statements for the year ended June 30, 2019. This communication is required under Statement on Auditing Standards No. 114. Additionally, RAMS was engaged to prepare the Addendum to the Annual Progress Report of the Housing Successor of the City of La Verne required under Senate Bill 314 pertaining to the City’s housing activities which is also included for Council’s consideration.
STAFF RECOMMENDATION: The City Council should receive and file the Comprehensive Annual Financial Report, Report on Internal Control over Financial Reporting and on Compliance and Other Matters, and Auditor Letter to the City Council for the year ended June 30, 2019.
7 AGENDA, La Verne City Council Meeting, Monday, February 03, 2020, Page 7
9. PUBLIC COMMENTS/ORAL COMMUNICATIONS - This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion at a later date. Any person desiring to speak should complete a ‘Speaker Card,’ located at the podium, and hand it to the Assistant City Clerk. When addressing the Council, please go to the podium and state your name and address for the record. The Mayor reserves the right to place limits on duration of comments.
10. COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS - Each Council Member may address the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended.
11. ADJOURNMENT
ADVISORY STAFF
____ Robert Russi, City Manager ____ Dan Keesey, Assistant City Manager/Director of Public Works ____ Robert Kress, City Attorney ____ Lupe Gaeta Estrella, Assistant City Clerk ____ Eric Scherer, Director of Community Development ____ Bill Aguirre, Director of Community Services ____ Nathan Statham, Finance Manager ____ Nick Paz, Police Chief ____ Devin Leonard, Interim Fire Chief ____ Dominic Milano, City Engineer ____ Bill Elftman, Information Services Manager
Posting Statement: On January 28, 2020, a true and correct copy of this Agenda was posted on the bulletin board at La Verne City Hall, 3660 D Street, La Verne, and on the City’s website at cityoflaverne.org.
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CITY OF LA VERNE REGISTER OF AUDITED DEMANDS 1trst2020
DEMANDS PRESENTED HAVE BEEN APPROVED CONSISTENT WITH THE CITY'S PURCHASING/FUNDING POLICY AND HAVE BEEN REVIEWED BY THE FINANCE MANAGER FOR ACCURACY AND PROPER APPROVAL.
SUMMARY OF DEMANDS
LARGEST IO CITY DEMAND PAYMENTS OTHERTHAN PAYROLL AND RELATED BENEFITS.
AMOUNT ISSUED TO DESCRIPTION l. $ 10,420.20 ATHENS SERVICES STREET/PARKING LOT SWEEPING SERVICES 2. 10,409.72 U.S. BANK CREDIT CARD PAYMENT.U.S. BANK 3. 10,291.16 INTER.CON SECURITY SYSTEMS, INC. PARKING ENFORCEMENT - DECEMBER 2OI9 4. 7,742.99 TPX COMMUNICATIONS PHONE SERVICES - NOVEMBER & DECEMBER 2OI9 5. 7,700.00 ROGERS, ANDERSON, MALODY & SCOTT ANNUAL FINANCIAL AUDIT. 5TH PAYMENT 6. 6,470.72 FRONTIER COMMUNICATIONS PHONE SERVICES . DECEMBER 2OI9 7 . 6,1 8l .83 CINTAS UNIFORM, MATS AND SUPPLIES.NOV. & DEC.2OI9 8. 5,131,96 INTELLI.TECH COMPUTER PRINTER SERVICES . NOVEMBER 2OI9 9. 4,900.00 DIVE/CORR,INC. RESERVOIR INSPECTIONS . 4 LOCATIONS l0 4,893.00 SUPERIOR COURT OF CA, COUNTY OF L.A. PARKING PENALTIES - DECEMBER 2OI9 29,784.77 OTHERDEMANDS
$ 103,926.35
DEMANDS OF $34,296.56 WERE PAID ON BEHALF OF LAIMPACT FOR LAW ENFORCEMENT TASK FORCE OPERATIONS.
A DETAILED LIST OF WARRANTS PAID IS ATTACHED AS EXHIBIT A.
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 37202,1HEREBY CERTIFY THAT THIS IS A TRUE AND ACCURATE REGISTER OF AUDITED DEMANDS.
FTNANCE MANAGER
Page I of3 9 February 3, 2020, City Council Meeting Page No. 2 CITY OF LA VERNE REGISTER OF AUDITED DEMANDS - EXHIBIT A t/1512020
CHECKNO. AMOUNT ISSUED TO 1495s7 $ 20.00 ANIKEVORKIAN 149558 31.00 ANTHONY VINCENT ARTISTRY 149559 81.64 APOSAGA COLETA 149s60 1,368.44 AT&TMOBILITY 149561 10,420.20 ATHENS SERVICES 149562 79.00 B & C HEADLINERS BARBER & HAIR 149563 2,142,50 CALIFORNIA HAZARDOUS SERVICE 149564 535.00 CALIFORMA PEST MANAGEMENT,INC. 149565 336.66 CALPERS 149566 233.33 CALPERS 149567 355.96 CALPERS 149568 1,155.00 CDCE
149s69 8 1 6.75 CHARTER COMMUNICATIONS 149570 2,96s.00 CIVILTEC ENGINEERING, INC. t49571 1,253.62 DANIELS TIRE SERVICE t49572 36.11 DAVIDR. FRACK 149573 527.00 DEPARTMENT OF JUSTICE 149574 1,521.t2 DIRECTV,INC. 149575 4,900.00 DIVE/CORR,INC 149576 55.47 EWING IRzuGATION PRODUCTS t49577 184.88 FRONTIER COMMI,JNICATIONS 149578 463.92 FRONTIER COMMUNICATIONS t49579 2,805.34 FRONTIER COMMTNICATIONS 149580 2,763.6r FRONTIER COMMUNICATIONS 14958 I 965.00 GARCIA'S FENCE CORP. 149582 9.08 GIBSON, WILLARD E. 149583 139.68 GOLDEN STATE WATER COMPANY 149584 327.32 HAN, BAN 149s85 109.82 HESS, ERIN 149586 82.97 HOLLIDAY ROCK CO. 149587 1,314.96 INLAND VALLEY DAILY BULLETIN 149588 5, l3 I .96 INTELLI-TECH 149589 I10.00 JESSE DURAN 149s90 50.00 KCKM PROPERTIES, LLC t49591 l 33.86 KONICA MINOLTA BUSINESS SOLUTIONS t49592 100.00 LAURA ALVAREZ 149593 100.00 LUIS GARAY t49594 t47.36 MARTINEZ, MICHAEL 149595 1,386.50 MCLAY SERVICES,INC. 149s96 273.08 OFFICE SOLUTIONS 149597 63.00 PTS 149598 80.00 PAUL ESTEVES 149599 820.08 PERERA CONST & DESIGN 149600 109.82 QUINN, GEORGE 149601 tt2.77 SAFETY NETT, INC. t49602 918.33 SAM'S CLUB/SYNCHRONY BANK 149603 l,146. I 8 STAPLES CREDIT PLAN 149604 39.89 STATER BROS. MARKETS 149605 4,893.00 SUPERIOR COURT OF CA,COUNTY OF L.A. 149606 1,000.00 THE COUNSELING TEAM INTERNATIONAL r49607 7,742.99 TPX COMMI.JNICATIONS 149608 t,682.73 WASTE MANGEMENT OF SAN GABRIEL r49609 I 09.82 WELLS, JOSHUA 149610 117,44 WU, LIHONG 14961 I 324.92 XEROX CORPORATION BANK DRAFT 2,920.45 CINTAS BANKDRAFT 3,261.38 CINTAS BANKDRAFT 252.97 FRONTIER COMMI,]NICATIONS EFT 70,08 COLLEGIATE PRESS EFT t,262.33 COMMERCIAL DOOR COMPANY EFT 10,291.16 INTER-CON SECI.]RITY SYSTEMS, INC. Page 2 of 3 10 February 3, 2020, City Council Meeting Page No. 3 CITY OF LA VERNE REGISTER OF AUDITED DEMANDS . EXHIBIT A Uls/2020
CHECKNO. AMOI.]NT ISSUED TO EFT 1,425.00 MESSINA AND ASSOCIATES EFT 2s2.00 MIRELES, CHAE EFT 4r3.54 ORANGE LINE OIL COMPANY, INC. EFT 380.00 PEST OPTIONS INC, EFT 573.0r POMONA TRUCK & AUTO STJPPLY EFT 7,700.00 ROGERS, ANDERSON, MALODY & SCOTT EFT 120.00 SUPERION, LLC EFT t0,409.72 U.S. BANK CORPORATE PAYMENT SYSTEM 103,926.35
34,296.56 Total LAIMPACT Demands Total Demands $ r38,222.9t
LAIMPACT Law Enforcement Task Force Demands 149612 20.00 ANGELINADIAZ t49613 597.87 CBE LOS ANGELES 149614 201.77 CELL BUSINESS EQUIPMENT 149615 r 3.61 FEDERAL EXPRESS CORP. 149616 r 65.00 FOOTHILL COMMUNCIATIONS, LLC 149617 135.00 FOOTHILL COMMUNCIATIONS, LLC 149618 170.3 I FOOTHILL COMMUNCIATIONS, LLC 149623 r 53.00 T-MOBILE USA,INC. MULTIPLE 32,840.00 LAI ENFORCEMENT OPERATIONS Total $ 34,296.s6
LAIMPACT demands are paid from federal asset forfeiture dollars allocated to LAIMPACT crime prevention activities. These funds are not City funds and are not available for City use outside of LAIMPACT activities.
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CITY OF LA VERNE REGISTER OF AUDITED DEMANDS u2212020
DEMANDS PRESENTED }IAVE BEEN APPROVED CONSISTENT WITH THE CITY'S PURCHASING/FUNDING POLICY AND HAVE BEEN REVIEWED BY THE FINANCE MANAGER FOR ACCURACY AND PROPER APPROVAL.
SUMMARY OF DEMANDS
LARGEST IO CITY DEMAND PAYMENTS OTHER THAN PAYROLL AND RELATED BENEFITS.
ISSUED TO DESCRIPTION
L $107,500.00 POMONA VALLEY TRANSP. AUTHORITY 3RD QUARTER BILLTNC - GET ABOUT & CAPTTAL 2019-2020 2. 17,744.07 CJPIA. EXCESS POOL CLAIMS PAYMENTS . JULY 2OI9 TO JANUARY 2O2O 3. t6,121.41 GREENSCAPE MAINTENANCE SERVICES MONTHLY MAINTENANCE. CITY WIDE 4. 9,485.00 FOOTHILL COMMT]NICATIONS, LLC PD EQUTPMENT MATNT. & REPAIR SVCS. DEC. 2019 -JUNE 2020 5. 5,995.60 BUCKNAM INFRASTRUCTURE, INC. PVMT MGMT CONSULTING SERVICES 6. 4,76s.44 PARADISE EMBROIDERY COMMT]NITY SERVICES - YOUTTVADULT T-SHIRTS 7. 4,233.24 JEFF JENKINS SERVICE TECHNICTAN REPAI& REPLACEMENT AND WASH SVCS - AMHERST & PLANT 8. 3,746.34 WEST COAST ABBORISTS, INC. TREE MAINTENANCE. DECEMBER 2OI9 9. 3,540.00 WESTERN WATER WORKS WATER SUPPLIES PURCHASED JANUARY 2O2O 10. 2,884.00 BABCOCK LABRATORIES, INC. WATER TREATMENT SERVICES 29,t00.93 OTHER DEMANDS
$ 205,7 r 6.03
DEMANDS OF $279,355.26 WERE PAID FOR PAYROLL AND EMPLOYEE BENEFIT RELATED ITEMS.
DEMANDS OF $9,819.80 WERE PAID ON BEHALF OF LAIMPACT FOR LAW ENFORCEMENT TASK FORCE OPERATIONS ,
A DETAILED LIST OF WARRANTS PAID IS ATTACHED AS EXHIBIT A.
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 37202,1HEREBY CERTIFY THAT THIS IS A TRUE AND ACCURATE REGISTER OF AUDITED DEMANDS.
FINANCEMANAGER
Page I of4 12 February 3, 2020, City Council Meeting Page No. 5 CITY OF LA VERNE REGISTER OF AUDITED DEMANDS - EXHIBIT A t/22/2020
CHECKNO. AMOUNT ISSUED TO 149631 $ 120.96 ACTION AWARDS,INC. 149632 20.00 AMETHYST HEALING SPA LLC'I' 149633 261.000 ARIANNA INCHAUSTI r49634 480.00 ARMANDO'S CLEANING SERVICES 149635 1,376.76 BRENNTAG PACIFIC, INC. 149636 5,995.60 BUCKNAM INFRASTRUCTURE, INC. 149637 r s0.00 CAFFE ALLEGRO * 149638 1,070.08 CALIFORNI,A DEPT OF TAX & FEE ADMIN t49639 750.00 CALIFORNIA PEST MANAGEMENT,INC. 149640 170.00 CALIFORNI,A PARK & RECREATION SOCIETY 149641 51.12 DANIELLE GABALDON * 149642 1,674.t0 DE NORA WATER TECHNOLOGIES, INC. 149643 720.00 DEPARTMENT OF JUSTICE 149644 150.00 EL PATRON II * 149645 350.00 ESTES, TONY 149646 80.00 FLORES, COLLEEN 149647 9,485.00 FOOTHILL COMMTINICATIONS, LLC 149648 221.54 GRAINGER 149649 322.72 GRAY, JANELLE 149650 10.00 GREGGMICHAEL KENT t49651 16.00 GUTIERREZ, MARK * t496s2 350.00 HARISONTOWLE t49653 I,1 55.1 0 HOME DEPOT CREDIT SERVICES 149654 210.00 INTERNATIONAL NSTITUTE OF MTNICIPAL CLERKS 149655 69.9s INLAND VALLEY DAILY BULLETIN 149656 65.00 JAIMENGUYEN 149657 4,233.24 JEFF JENKINS SERVICE TECHNICIAN t49658 57.00 JUDITH DE LANG 149659 255.00 KELLY'S K-9 COLLEGE 149660 1,253.25 KEVTN STILLMAN 149661 5.58 LA VERNE POWER EQUIPMENT, TNC. 149662 250.00 LEEPER, CORY 149663 936.t7 LESLIE'S POOLMART, INC. t49664 65.00 LISA CHRISTIE t49665 49.05 MAGSINO,IAMES ROMER 149666 367.86 MATHEWS, MICHAEL'} 149667 108.00 MIJACALARM 149668 101.00 MIRDULA RAVI * 149669 50.00 MOMS CLUB OF SAN DIMAS 149670 I14.00 MONICA SANTOS 14967 | 1,968.40 MORROWMEADOWS CORP t49672 100.00 NKERE, BARRY 149673 73.02 OFFICE DEPOT t49674 378.00 PALMER, OLIVIA 149675 4,765.44 PARADISE EMBROIDERY & SCREEN PRINT t49676 1,955.00 PRO AUDIO VIDEO INC. 149677 42.00 RACHEL TYLER * 149678 65.00 RAQUELALVAREZ 149679 218.27 RAYMOND APODACA 149680 440.50 RICARDO ROJAS * I 4968 I r 6.00 RODRIGUEZ, TANYA r49682 120.00 ROSA ROSAS * * 149683 18.44 RUBALCABA, BERNICE 149684 4t.99 SANDERS LOCK & KEY 149685 70.87 SAVAGE, HOLLIE 149686 912.00 S. CALIFORNIA MUNICIPAL ATHLETIC FEDERATION 149687 85.00 SCOTTBAUR 149688 r80.00 SOUTHERN CALIFORNIA WATER UTILITIES ASSOC. Page2of 4 13 February 3, 2020, City Council Meeting Page No. 6 CITY OF LA VERNE REGISTER OF AUDITED DEMANDS - EXHIBIT A v22t2020
CHECKNO. AMOLINT ISSUED TO 149689 996.00 SEUBE, DARRYL L. {. t49690 175.00 SMARTLINE, LLC t49691 277.09 STAPLES CREDIT PLAN 149692 229.86 SUNRUN * 149693 645.12 SYNTECHGROUP. t49694 450.00 TEMPLE, DIANE 149695 125.00 THREE VALLEYS MTINICIPAL WATER DIST. 149696 67.30 TIME WARNERCABLE 149697 1,330.00 TUCKER, RAY r49698 520. l3 UNIVERSITY OF LA VERNE 149699 I10.35 XEROX CORPORATION EFT 815.00 ACCESS CONTROL SECURITY EFT 985.99 ALL STAR FIRE EQUIPMENT INC. EFT 2,884.00 BABCOCK LABORATORIES, INC. EFT 464.00 BSKASSOCIATES EFT 150.00 CALIFORNIA LANDSCAPE & DESIGN EFT 17,744.07 CJPIA - EXCESS POOL EFT 16,721.41 GREENSCAPE MAINTENANCE SERVICES EFT 1,436.40 KIDZ LOVE SOCCER EFT r07,500.00 POMONA VALLEY TRANSPORTATION AUTHORITY EFT t82.96 SUPERION, LLC EFT 3,746.34 WEST COAST ARBORISTS, INC. EFT 3,540.00 WESTERN WATERWORKS 205,716.03
*Re-Issued Checks
279,355.26 Total Payroll and Employee Benefit Payments 9,8r9.80 Total LAIMPACT Demands Total Demands $ 494,891.09
Pavroll and Emolovee Benefit Pavments: 149705 470.00 CITY OF LA VERNE EMPLOYEE FTND 149706 1,525.00 FIDELITY TNVESTMENTS 149707 1,750.00 RUSSI, CHzuSTINA 149',108 32.00 LTNITED WAY CAMPAIGN 149709 948.24 WAGEWORKS INC. DRAFT 28,148.59 STATE OF CALIFORNIA DRAFT t20,977.64 STATE OF CALIFORNIA DRAFT 2,912.68 LINCOLN NATIONAL LIFE INSURANCE DRAFT 6t9.76 MASS MUTUALROTH DRAFT 7,608.81 MASS MUTUAL 4OIA DRAFT 18,921 .3 l MASS MUTUAL 4578 DRAFT 1,715.26 STATE DISBURSEMENT DRAFT 88,912.14 LTNITED STATES TREASURY EFT 2,596.25 LA VERNE FIRE ASSOCI,ATION EFT 2,217.58 LA VERNE POLICE OFFICERS ASSOCIATION Total $ 279,355.26
Page 3 of 4 14 February 3, 2020, City Council Meeting Page No. 7 CITY OF LA VERNE REGISTER OF AUDITED DEMANDS - EXHIBIT A 112212020
CHECKNO. AMOUNT ISSUED TO
Break down of standard providers and the benefits they provide
Provider Benefits Description A.C. Newman Co. Accidental Death Life Insurance Delta Dental Employee dental insurance coverage Health Net Employee health insurance Kaiser Employee health insurance Wage Works Flexible Savings Account (FSA) deductions US Treasurey Employee federal tax withholdings State of Califomia Employee state income tax, unemployment insurance and child support/garnishments Mass Mutual A 401A plan Mass Mutual B 4578 plan Mass Mutual Roth Roth plan Lincoln National Replacement Social Security plan Fire/Police/La Verne Employee Fund Employee Group Dues
LAIMPACT Law Enforcement Task Force Demands 149700 $ 1,400.00 CHARLES BALO 14970r 6,073.t2 CITY OF PASADENA 149702 96.68 FEDERAL EXPRESS CORP. 149703 250.00 NUWAY JANITORIAL SERVICES
149704 2,000.00 LAI ENFORCEMENT OPERATIONS 'X Total $ 9,819.80
* Payments in this category are made in the course of ongoing criminal cases.
LAIMPACT demands are paid from federal asset forfeiture dollars allocated to LAIMPACT crime prevention activities. These funds are not City funds and are not available for City use outside of LAIMPACT activities.
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16 February 3, 2020, City Council Meeting Page No. 9
o o o CIry OF LAVERNE
TE February 3,2020
Mayor and Cig Council
FROM: Eric Scherer, AICP, Community Development Director
SUBJECT: Case No. 74-19SEP - STREET CLOSURE FOR SPECIAL EVENTS AT PUDDINGSTONE DR. AND FAIRPLEX DR.
AGENDA SUMMARY
The City Council is requested to consider a street closure for the Tri Events Triathlon Series. Tri Events lnc. has submitted a request to use portions of Puddingstone Drive for the purpose of four (4) cycling races as a part of a triathlon on Sunday, March 15th, Sunday, April 'l 8th, Saturday, May gth, and Sunday, October 11it', 2O2O. The request specifically involves the closure of the eastbound lanes of Puddingstone from Van Dusen Road to Fairplex Drive between the hours of 7:30 a.m. and 11:00 a.m. the day of the event. The races are each expected to draw up to 400 participants.
Staff recommends the City Council Adopt Resolution No. 20-7 authorizing the City Manager to execute the Agreement with Tri Events lnc. permitting the race on specified streets on the specified dates.
The course of this event overlaps with the approved course of the Majestic Cycling La Verne Grand Prix event scheduled to take place on March 1sth, the date of the first of the triathlon events. Staff has coordinated with both applicants, the Public Works Department, the Fire Department, and the Police Department in order to eliminate any complications and ensure the plans are acceptable to all parties. Furthermore, the Public Works, Fire, and Community Development Departments have reviewed and approved the street closure plan for this event.
Recent policy has been to prepare individualized agreements for such large events. Staff has therefore developed a standard agreement outlining the traffic control plan requirements, locations, schedule, estimated fees, applicant's responsibilities, and insurance and indemnification requirements. Any conditions will be applied to the Special Event Permit approval.
Respectfully submitted by: Gabriel Rivera. Plannino lntern
Attachments: A: Draft Resolution No. 20-7 B: Draft Agreement C: Draft Notification Letter
17 February 3, 2020, City Council Meeting Page No. 10
RESOLUTION NO.2O-7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH TRI EVENTS, INC. R THE 2O2O LA TRI-SERIES TRIATHALON CHAMP]ONSHIP AND TRI EXPRESS TRIATHOLON SERIES ON MARCH 1sTH, APRIL 18TH, MAY gTH, ANO OCTOBER firH,2o2o.
BE lT RESOLVED by the City Council of the City of La Verne as follows:
Section 1. That the City Manager of the City of La Verne be hereby authorized to execute an Agreement with Tri Events LLC, said Agreement being in the form attached hereto and made a part hereof by reference as through the same were set forth in full herein.
Section 2. That the Mayor shall sign and the Assistant City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force.
PASSED, APPROVED AND ADOPTED this 3'd day of February,2O20
Don Kendrick, Mayor
ATTEST:
Lupe Gaeta Eskella, Assistant City Clerk
I hereby certify that the foregoing Resolution No. 20-7 was duly and regularly ado by the City Council of the City of La Verne at a meeting thereof held on the day of February 2020, by the following vote:
AYES: NOES: ABSENT: ABSTAIN:
Lupe Gaeta Estrella, Assistant City Clerk
ATTACHlllENTA
18 February 3, 2020, City Council Meeting Page No. 11
AGREEMENT TO PERMIT THE 2O2O LA TRI.SERIES TRIATHLON CHAMPIONSHIP SERIES OF TRI EVENTS INC.
THIS AGREEMENT is entered into this 3'd day of February, 2020, by and between the CITY OF LA VERNE, a municipal corporation (hereinafter "City") and Tri Events, Inc., a corporation
(hereinafter "TRI EVENTS".) The parties hereto agree as follows:
1. Project. TRI EVENTS has requested use of one lane of a public street as a portion of the route for the 2020 LA Tri-Series Triathlon Championship & Tri Express Triathlon Series on
Sunday, March l5th, Saturday, April 18th, Saturday, May 9th, and Sunday, October llth,2O2O.
2. Liaison/Representatives. The authorized representative for the City shall be the City Manager or his designee. The City Manager's designee for this event is Eric Scherer, Community Development Director. All changes to the schedule or the authorized activities per this Agreement shall be subject to the prior approval of the City Manager's designee, prior to the day of the events. The authorized representative for TRI EVENTS is Carolyn Wolk, 626-331- 0169 or 714-906-2145. The City Manager's designee for the day of the event shall be the on duty watch commander of the La Verne Police Department,909-596-1913.
3. Location. The Triathlon will be conducted on portions of Puddingstone Drive going eastbound to Fairplex Drive and then south on Fairplex Drive; however, Fairplex Drive is not subject to the City of La Verne's control.
4. Schedule. The Triathlon will be conducted on Sunday, March l5th, Saturday, April l8th, Saturday, May 9th, and Sunday, October llth,2O2O from 7:30 a.m. to 11:00 a.m. Any deviation from this schedule is subject to the advance approval of the City Manager or his designee.
AITACHII/IENT B 19 February 3, 2020, City Council Meeting Page No. 12
5. Fees. The following estimated fees shall be deposited by TRI EVENTS with the City prior to the commencement of event. At the conclusion of the event, an accounting shall be provided to TRI EVENTS detailing the City's expenditures for staff time and injury to public property (if any).
Application/Permit Issuance fee: $ 150.00 Police Safety per event: $ 3,780.00
Event 1-March 15th
Two officers and one volunteer from 7:30-ll:00am at $945
Event2-April 18th
Two officers and one volunteer from 7:30-11:00am at $945 Event3-Maygth
Three officers from 7:30-l l:00am at $945 Event4-October llth
Three officers from 7:30-11:00am at $945 Public Works Inspection: $ I10.00 Deposit: S 1,000.00 Deposit on hand from last year - $ 1,000.00 Total fees/deposit DUE: $ 4,040.00
6. Street Closures. The cycling portion of the triathlon route will require traffic control on Puddingstone Drive. One lane of eastbound Puddingstone Drive will be closed to traffic from Van Dusen Road to Fairplex Drive. The closure will occur on Sunday, March l5th, Sunday,
April l8th, Saturday, May 9th, and Sunday, October llth,2O2O between 7;30 a.m. and 11:00 a.m.
TRI EVENTS shall also submit a traffic control plan to the City's Public Works Department for approval. Said approval shall be obtained prior to the event. TRI EVENTS shall be responsible for all costs associated with field review of the traffic control (as estimated in Section 5) by the La Verne Police Department. TRI EVENTS shall secure any required permits from other affected agencies, i.e. Los Angeles County, City of Pomona and City of San Dimas.
2
20 February 3, 2020, City Council Meeting Page No. 13
7. Notification to ResidentslBusiness. TRI EVENTS shall provide written notices to residents and institutions along the triathlon route and adjacent streets impacted by the triathlon
including but not limited to Park La Verne Homeowners Association. The notice shall be provided at least five (5) days in advance of the event and shall include the date, time and anticipated traffic measures. The notice shall also include the name of a contact person at the site, who is available by cellular phone or pager at all times during the event. TRI EVENTS shall submit the text of the notices to the City Manager's designee for his approval prior to mailing. The City Manager's designee shall have the authority to extend the notice perimeter if he feels that such action is reasonably necessary.
8. Cleanup/Damage to Public Property. The triathlon route and all public property utilized shall be cleaned and restored at the conclusion of the event to its original condition. All trash, debris, markers, signs, etc, shall be removed by TRI EVENTS within 24 hours after the cessation of the event. TRI EVENTS shall be responsible for any damage to public property on route, which occurs during the triathlon as the result of the triathlon.
9. Insurance. TRI EVENTS shall provide City with a certificate of insurance evidencing liability coverage, in an amount of at least $1,000,000, naming the "City of La Veme, its officials, officers, agents, employees and volunteers" as additional insured. TRI EVENTS shall also provide evidence of Worker's Compensation coverage. Evidence of insurance coverage shall be submitted prior to the triathlon.
10. Indemnification. TRI EVENTS shall indemniff and save harmless City, its officers and employees, from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of City, and shall defend, indemnify and save harmless City, its officers, employees and agents, from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, Worker's Compensation claims, resulting from or arising out of the conduct of the triathlon.
3
21 February 3, 2020, City Council Meeting Page No. 14
11. Notices. Notices and correspondence shall be delivered in person or sent by certified mail to the following addresses:
CITY: TRI EVENTS:
City of La Verne Tri Events, Inc. Attention: City Manager c/o Carolyn Wolk 3660 "D" Street 3222Yirginia Avenue La Verne, CA 91750-3599 West Covina,CA 91791
909-596-8726 626-331 -0 I 69 or 7 1 4-906-21 45
12. Attorney's Fees. In the event that any legal action is commenced to enforce or interpret the terms or conditions of this Agreement, the prevailing party shall, in addition to any other relief and costs, be entitled to reasonable outside attorney's fees.
13. Termination of Agreement. This Agreement may be terminated with cause by either party hereto. Unless earlier terminated for cause, this Agreement shall be effective on the date signed by both parties and shall terminate on October llth, 2020. The indemnification provision in paragraph 10 shall survive the termination of the Agreement and remain in full force and effect for all applicable instances resulting from the triathlon.
14. Entire Agreement. This Agreement represents the entire agreement between the parties hereto as to the matters contained herein.
15. Amendment. This Agreement may be amended upon the written mutual agreement of the parties through their designated representatives.
4
22 February 3, 2020, City Council Meeting Page No. 15
IN WITNESS of the foregoing, the parties hereto have executed this Agreement on the date first written above.
CITY OF LA VERNE
By: Robert Russi, City Manager
TRI EVENTS INC.
By: Carolyn Wolk
ATTEST:
By:
Lupe Gaeta Estrella, CMC Assistant City Clerk
5
23 February 3, 2020, City Council Meeting Page No. 16
TO THE RESIDENTS OF LA VERNE & VAN DUSEN ESTATES OFF OF PUDDINGSTONE DRIVE.
Please mark vour calendars....
On Sunday March 15tn, Saturday April 1Btn, Saturday May 9th & October 11th 2020. There will be Triathlons at Bonelli Park which will start and end on the South Side entrance in Bonelli Park, off of Via Verde Drive
,tt :. There will be cyclists on Puddingstone Drive betWeen the hours of 7:30 AM to 11:00 AM. The cyclists will use the south Iane of Puddingstone Drive flowing from west to east.
Residents are encouraged to not use Puddingstone Drive from 7:00 AM to 11:00 AM if traveling east bound. However if you need to use Puddingstone:,,Drive during the cycling hours, west bound Pudd,ingstone wi'ft|l be open. Please drive slowly and watch for cyclists duri:ng race hours.
: We thank you very much for your cooperation. Please contact Carol,yn Wolk at 626-331-0169 if you would like more informat]on about the triathlon.
,,r1,,,,,, " l, Ca rolyn Wolk Race;Director Tri Events Inc. 626'331-0169 - Office
ATTACHIIIENT C
24 February 3, 2020, City Council Meeting Page No. 17
Agenda R port CITY OF LA VERNE City Clerk's Department
DATE: February 3,2020 TO: Mayor and City Council d\St'' FROM: Lupe Gaeta Estrella, Assistant City Clerk
SUBJECT: Declaration of lntention to Provide Weed Abatement on Specific Properties
AGENDA SUMMARY
Each year the County of Los Angeles Department of Agricultural CommissionerMeights & Measures conducts inspections for weeds, brush, rubbish, and refuse on public and private property that may be considered a seasonal and recurrent nuisance. A list of properties is piovided to the City for review. City Council is then required to declare its intention to provide for this abatement and set a public hearing for affected property owners to register objections to said abatement. (Council Member Carder will declare a conflict of interest because she is a member of the Board of Directors for a homeowners' association that oversees property appearing on the weed abatement list).
RECOMMENDATION
Staff recommends that Council adopt Resolution No. 20-08, declaring the intention to provide for the abatement of weeds, brush, rubbish, and refuse and setting a public hearing for Tuesday, February 18,2019 at 6:30 pm.
BACKGROUND
Every year a number of private and public properties are declared to be a fire hazard, tnerefore a public nuisance, due to overgrowth of weeds or brush or the presence of rubbish or other flammable materials. the County of Los Angeles Department of Agricultural CommissionerMeights & Measures has been designated to inspect the pioperties, provide notice to the property owners, and perform weed abatement services. The process as permitted by California Government Code Section 39560 to 39588 requiies that Council first declare its intention to provide for the abatement and set a public neliing to allow affected property owners to register objections to the abatement of the weeds, brush, rubbish, and refuse.
Attachments: Resolution No. 20-08 Weed Abatement Declaration List
25 February 3, 2020, City Council Meeting Page No. 18
Resolution No. 20-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNW OF LOS ANGELES, STATE OF CALIFORNIA, DECLARING THAT WEEDS, BRUSH, RUBBISH AND REFUSE UPON OR IN FRONT OF SPECIFIED PROPERTY IN THE CITY ARE A SEASONAL AND RECURRENT PUBLIC NUISANCE, ANO DECLARING ITS INTENTION TO PROVIDE FOR THE ABATEMENT THEREOF
THE CITY COUNCIL OF THE CITY OF LA VERNE DOES RESOLVE AS FOLLOWS:
BE lT RESOLVED THAT, pursuant to the provisions of Title 4, Division 3' Pa'1. 2' Chapter '13, Article 2, of the California Government Code, Sections 39560 to 39588' inclusive, and evidence received by it, the city council of the city of La Verne specifically finds:
SECTION 1. That the weeds, brush or rubbish growing or existing upon the streets, sidewalks, or private property in the city attain such large growth as to become, when dry, a fire menace to adjacent improved property, or which are otherwise noxious, dangerous, or a public nuisance
SECTION 2. That the presence of dry grass, stubble, refuse, or other flammable materials are conditions which endanger the public safety by creating a fffe hazatd.
SECTION 3, That by reason of the foregoing fact, the weeds, brush, rubbish, dry grass, stubble, refuse, or other flammable material growing or existing upon the private property hereinafter described, and upon the streets and sidewalks in front of said property constitute a seasonal and recurrent public nuisance and should be abated as such.
SECTION 4. That the private property, together with the streets and sidewalks in front of same herein referred to, is more particularly described as follows, to wit: That certain property described in the attached list hereto and by this reference made a part hereof as though set forth in full at this point.
BE lT THEREFoRE REsoLvED, pursuant to the findings of fact, by this Council heretofore made, that the weeds, brush, rubbish, dry grass, stubble, refuse, or other flammable material in and upon and in front of the real property hereinbefore described constitute and are hereby declared to be a seasonal and recurrent public nuisance which should be abated. The Agricultural Commissioner/Director of Weights and Measures, County of Los Angeles, is hereby designated the person to give notice to destroy said weeds,
26 February 3, 2020, City Council Meeting Page No. 19
brush, rubbish, dry grass, stubble, refuse, or other flammable material and shall cause notices to be given to each property owner by United States Mail and said notice shall be substantially in the following form to wit.
NOTICE TO DESTROY WEEDS, REMOVE BRUSH, RUBBISH AND REFUSE
Notice is hereby given that on February 3,2020, the City Council of the City of La Verne passed or will pass a resolution declaring noxious or dangerous vegetation including weeds, brush, tumbleweeds, sagebrush, and chaparral or rubbish and refuse were growing or occurring upon or in front of said property on certain streets in said city or unincorporated area of the County of Los Angeles, and more particularly described in the resolution, and that they constitute a public nuisance which must be abated by the removal of said noxious or dangerous vegetation, rubbish and refuse. The resolution further declares that, if not abated, the vegetation and/or rubbish and refuse may be removed and the nuisance abated by County authorities in which case the cost of removal shall be assessed upon the land from or in front of which the noxious or dangerous vegetation, rubbish and refuse are removed. Such cost will constitute a special assessment against such lots or lands. Reference is hereby made to said resolution for further particulars. ln addition, the Board of Supervisors of the County of Los Angeles authorized and directed the Agricultural Commissioner to recover its costs of details. Alt property owners having any objections to the proposed removal of noxious or dangerous vegetation, rubbish and refuse and the recovery of inspection costs, are hereby notified that they may attend a hearing of the City Council of said city to be held at 3660 D street, La Verne, CA 91750, in the council chambers on February 18,2O2O at 6:30 p.m. where their objections will be heard and given due consideration. lf the property owner does not want to present objections to the proposed removal of the noxious or dangerous vegetation including weeds, brush, tumbleweeds, sagebrush, and chaparral or rubbish and refuse, or the recovery of inspection costs, the owner need not appear at the above mentioned hearing.
Lupe Gaeta Estrella, Assistant City Clerk
Resolution No. 20-08 Page2
27 February 3, 2020, City Council Meeting Page No. 20
BE lT THEREFORE RESOLVED, that the Agricultural Commissioner is hereby authorized and directed to recover its costs of inspection of the properties hereinabove described in a manner consistent with prior action of the Board adopting a fee schedule for such inspections. The recovery of these costs is vital to the ongoing operation governing the identification and abatement of those properties that constitute a seasonal and recurrent public nuisance and endanger the public safety.
BE lT FURTHER RESOLVED THAT the 18th day of February 2020, at the hour of 6:30 p.m. of said day is the day and hour, and the Meeting Room of the City Council of the City of La Verne in the City Hall in the City of La Verne is fixed by this City Council as the place when and where any and all property owners having any objections to the aforesaid proposed removal of weeds, brush, rubbish, dry grass, stubble, refuse, or other flammable material may appear before the City Council and show cause why said weeds, brush, rubbish, dry grass, stubble, refuse, or other flammable material should not be removed in accordance with this resolution, and said objections will then and there be heard and given due consideration; and
BE lT RESOLVED THAT the notices to destroy weeds, brush, rubbish, dry grass, stubble, refuse or other flammable material hereinbefore referred to shall be mailed by said Agricultural Commissioner/Director of Weights and Measures at least ten days prior to February 18,2O2O.
PASSED AND ADOPTED this 3d day of February. 2020.
Mayor Don Kendrick ATTEST:
Lupe Gaeta Estrella, Assistant City Clerk
Resolution No. 20-08 Page 3
28 February 3, 2020, City Council Meeting Page No. 21
ABATEMENTORDER: 20-08 February 18,2020
FOLLOWING THE PUBLIC HEARING HELD FEBRUARY 18,2020, IN THE MATTER OF
RESOLUTION TO ABATE NOXIOUS WEEDS, RUBBISH, AND REFUSE, THE CITY
COUNCIL OF THE CITY OF LA VERNE, BY MOTION ADOPTED AN ORDER DIRECTING
THE AGRICULTURAL COMMISSIONER/DIRECTOR OF WEIGHTS AND MEASURES TO
ABATE THE NUISANCE BY HAVING THE WEEDS, RUBBISH, AND REFUSE REMOVED.
CITY OF LA VERNE
Mayor Don Kendrick
ATTEST:
Lupe Gaeta Estrella, Assistant City Clerk
Resolution No. 20-08 Page 4
29 February 3, 2020, City Council Meeting Page No. 22
STATEOFCALIFORNIA ) )SS COUNTLY OF LOS ANGELES
ADRIAN ZAVALA, DEPUW DIRECTOR, BUREAU CHIEF,AGRICULTURAL
COMMISSIONERANEIGHTS AND MEASURES, being first duly sworn says: That on or before the lstday of February, 2020, as required by the Govemment Code of the State of California, he notified by United States Mail the owners of each of the properties described in the attached list a notice or notices to destroy noxious or dangerous weeds, of which the annexed is a true copy, and setting the 18th day of February, 2020, as the date upon which owners of said property could attend a meeting of the Council of the City of La Verne, when their objections will be heard and given due consideration.
ADRTAN Deputy Director, Bureau Chief
SUBSCRIBEDAND SWORN TO BEFORE ME this 3d day ol February, 2O2O
Lupe Gaeta Estrella, Assistant City Clerk
Resolution No. 20-08 Page 5
30 February 3, 2020, City Council Meeting Page No. 23
CERTIFICATION
I hereby certify that the foregoing Resolution No. 20-08 was duly and regularly adopted by the City Council of the City of La Verne at a meeting thereof held on the 3rd day of February 2020, by the following vote.
AYES: NOES: ABSENT: ABSTAIN:
Lupe Gaeta Estrella, Assistant City Clerk
Resolution No. 20-08 Page 6
31 February 3, 2020, City Council Meeting Page No. 24
32 February 3, 2020, City Council Meeting Page No. 25 tOS ANGETES COUNW DECIARATION LIST DATE:01/07/20 CIWOF TAVERNE KEY OF B, CtrY CODE 370 (UNTMPROVED)
PARCEL LOCAT!ON OWNER MAITING ADDRESS ZIP CODE 8371 004 903 WHITE AVE METRO GOID IINE FOOTHILL H(TENTION 406 E HUNTINGTON DR STE 202 MONROVIACA 91015 8371 004 904 WHITE AVE METRO GOID LINE FOOTHITL EXTENTION 405 E HUNTINGTON DR STE 202 MONROVIACA 91016 8375 010 001 2743 D ST CARTER, HEATHER PO BOX 261 tA VERNE CA 91750 837s 025 066 8TH STREET CHRISR&TYNNDBUTTER 2415 7TH ST tA VERNE CA 91750 8375 026 058 8T}I STREET JUAN M GARCIA 1996 PEYTON RO LA VERNE CA 91750 8377 002002 2054 srH ST LAURA M STEIDLEYTR 20920 EARL ST, APT 250 TORRANCE CA 90503 8377 025 900 ARROW HWY METRO GOLD LINE FOOTHILL EXTENTION 405 E HUNTINGTON DR STE 202 MONROVIA CA 91015 8377 025 901 ARROWHWY METRO GOLD LINE FOOTHILL EXTENTION 406 E HUNTINGTON DR STE 202 MONROVIA CA 91016 8377 025902 ARROW HWY METRO GOLD LINE FOOTHITL EXTENTION 406 E HUNTINGTON DR STE 202 MONROVIACA 91015 8377 025 900 ARROW HWY METRO GOTD LINE FOOTHITL EXTENTION 406 E HUNTINGTON DR STE 202 MONROVIACA 91016 8377 025 901 ARROW HWY METRO GOIO TINE FOOTH]TT EXTENTION 406 E HUNTINGTON DR STE 202 MONROVIACA 91016 8377 028 900 ARROW HWY TACMTA l GATEWAY PTAZA LOS ANGELES CA 90012 8377 028 901 ARROW HWY TACMTA l GATEWAY PI.AZA LOS ANGELES CA 90012 8378 002 900 ORANGE STREET TACMTA l GATEWAY PIAZA LOS ANGETES CA 90012 8378 002 901 ORANGE STREET LACMTA l GATEWAY PLAZA LOS ANGELES CA 90012 gmrz 8378 002 902 D STREET LACMTA l GATEWAY PLAZA LOS ANGELES CA 8378 002 903 FAIRPTEX DR]VE LACMTA l GATEWAY PIAZA LOS ANGELES CA 90012 8378 003 013 2O16ARROW HWY ARCHIBATD & TAIVA MCI.AY TR 2035 ARROW HWY LA VERNE CA 91750 8378 003 034 ARROWHWY WILLIAM H & ENJOTI JACKSON TR P O BOX 3042 SAN DIMAS, CA 9L773 8378 004 025 WALNUTSTREET ,OER&AGATHACZAVAI.A 2046 WATNUT ST tA VERNE CA 91750 8378 004 900 ORANGE STREET TACMTA l GATEWAY PTAZA LOS ANGELES CA 90012 8378 004 901 ORANGE STREET I.ACMTA l GATEWAY PIAZA LOS ANGETES CA 90012 8378 00s 005 1974ARROW HWY SOTEDAD R GOMEZ 803 DONLEY ST IAVERNE CA 91750 8378 006 900 ORANGE STREET TACMTA l GATEWAY PI3ZA LOS ANGELES CA 9(xr12 8378 006 901 ORANGE STREET LACMTA ;l GATEWAY PIAZA LOS ANGELES CA 90012 8378 fir7 030 WALNUTSTREET VINCENT E ALEJANDRE 1615 REDWOOO WAY UPI.AND CA 9t784 8378 007 031 WALNUTSTREET VINCENT E ATEIANORE 1515 REDWOOD WAY UPI.AND CA 977ld4 8378 007 032 WALNUTSTREET VINCENT E ALEJANDRE 1515 REDWOOD WAY UPTAND CA 9L7U 8378 007 903 WALNUTSTREET L A CO FLOOD CONTROT DIST 9OO S FREMONT AVE ALHAMBRACA FTf:I.B 8378 007 904 ASTREfi I.ACMTA l GATEWAY PTAZA TO5 ANGETES CA 90012 8378 007 907 1874 WALNUT ST TAVERNE HOUSING SUCCESSOR AGENCY 3660 D ST TA VERNE CA 91750 8378 007 908 WALNUTSTREEI LA VERNE HOUSING SUCCESSOR AGENCY 3660 D ST TA VERNE CA 91750
1
33 February 3, 2020, City Council Meeting Page No. 26 TOS ANGETES COUNTY DECIARATION IIST DltE: ailo7l}o CITY OF LA VERNE KEY OF B, CITY CODE 370 (UNTMPROVED)
PARCEL LOCATION OWNER MAILING ADDRESS zrP coDE I 8378 007 909 WALNUTSTREET VERNE HOUSING SUCCESSOR AGENCY 3660 D ST I.A VERNE CA 91750 8378 008 011 1828 ARROW HWY ELSIGLO XX CORP P O BOX 238 LA VERNE CA 91750 8378 010 041 MARSHAIL CANYON CHANNEL NIVERSITY OF I.A VERNE 1950 3RD ST LA VERNE CA 91750 8378 010 911 MARSHALT CANYON CHANNEL L A CO FLOOD CONTROT DIST S FREMONT AVE ATHAMBRA CA 91803 8378 010 918 A STREET LACMTA l GATEWAY PI-AZA TOSANGETES CA 90012 8378 010 926 WHEELER AVE LACMTA l GATEWAY PI.AZA TO5 ANGETES CA 90012 8378 010 927 WHEELER AVE TACMTA .l GATEWAY PTAZA tOS ANGELES CA 90012 1374 PALOMARES ST ROEERTJR & DAWNA MARSHALLTR 121 W 4TH ST SAN DIMAS, CA 9t773 8378 011 904 PUDDINGSTONE CHANNEL L A CO FLOOD CONTROL DIST S FREMONT AVE CA 91803 8378 011 90s HWY l GATEWAY PLAZA LOS ANGELES CA 90012 IARROW . TACMTA l GATEWAY LOS ANGELES CA 90012 |i ..,"^**---***---*-8378 011906 HWY 8378011907 ARROW HWY IACMTA l GATEWAY PI.AZA TOS ANGELE5 CA 90012 8378 012 o33 TARROW HWY UNIVERSITY OF LAVERNE 1950 3RD ST TAVERNE CA 91750 gmE 8378 012 909 RD IACMTA l GATEWAY PTAZA tOS ANGETES CA 8378 012 913 CHANNEL LACMTA l GATEWAY PLAZA LOS ANGELES CA 9(x)12 8378 013 803 STREET SO CALIFWATER CO 530 E FOOTHttt BIVD DI CA 9t773 8378 013 804 STREET SO CALIF WATER CO 630 E FOOTHITL BLVD 8378 013 910 STREET M ETROPOLITAN WATER DIST P O BOX 54153 911 ORANGE STREET LA CO FLOOD CONTROL DIST 9(x)S FREMONTAVE 0m 1910 FAIRPLEX DR EDNA TOPEZTR 2374 TURNSTONE ST ARROYO GRANDE CA 91420 8378 014 005 1910 FAIRPLEX DR EDNA LOPEZTR 2374 TURNSTONE ST GRANDE CA 93420 8378 025 113 ARBOR ClR PARK LA VERNE HOA 451W BON1TAAVE fl15 SAM DIMAS 91773 8378 028 006 DR PARK LAVERNE HOA 451W BONITAAVE fl15 lsau oruas 9t773 8378 029 020 DUSEN RD PARK IAVERNE HOA 451W BONITAAVE fl15 SAM DIMAS 9t771 8381 019 900 AVE METROPOLITAN WATER DIST P O BOX s4153 tOS ANGETES CA 90054 8381 020 902 AVE METROPOLITAN WATER D]ST P O BOX 54153 LOS ANGELEs CA 900s4 AVE ETROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 90054 8381 023 901 AVE WATER DIST P O BOX 54153 LOS ANGELES CA 90054 8381 030 902 WHEELER AVE METROPOTITAN WATER DIST P O BOX 54153 TOS ANGELES CA 90054 i 8381 030 903 WHEELER AVE METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 900s4 8381 033 017 1837 1St 5T RICHARD CARMONACOTR 1273 6ROVE AVE UPLAND CA 91786 8381 034 900 ARROW HWY I.ACMTA l GATEWAY PLAZA LOSANGELES CA 90012
2 34 February 3, 2020, City Council Meeting Page No. 27 tOS ANGELES COUNW DECTARATION LIST DpTE: olloTl2o CIW OF IAVERNE KEY OF B, CIWCODE 370 (UNIMPROVED)
PARCET tocATroN OWNER MAILING ADDRESS ZIP CODE 8381 034 901 HWY TACMTA l GATEWAY PLAZA TOS ANGETES CA mFm - 8381036022 1415 PALOMARES ST DURSTON MFG CO P O BOX 340 I.A VERNE CA 91750 8381 036 023 3RD ST PETER K & JItt BOLI TR 475 W PAIM DR ARCADIA CA 91007 8381 036 905 WHEELER AVE METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 90054 8381 035 906 WHEETER AVE METROPOTITAN WATER DIST P O BOX 541s3 LOS ANGELES CA 90054 8382 006 039 DE ANZA HEIGHTS PUDDINGSTONE 1A VENTURE TtC 18401 ARENTH AVE BLDG B INDUSTRY CA 91748 8382 (x)6 042 WATNUTSTREET PUDDINGSTONE LA VENTURE LtC 18401 ARENTH AVE BLDG B INDUSTRY CA 9L748 8382 006 043 WALNUTSTREET PUDD]NGSTONE I.A VENTURE LLC 18401 ARENTH AVE BLDG B INDUSTRY CA 9L748 8382 006 044 DE ANZA HEIGHTS PUDDINGSTONE I.A VENTURE LLC 18401 ARENTH AVE BLDG B INDUSTRY CA 9t748 8382 006 045 DE ANZA HEIGHTS PUDDINGSTONE I.A VENTURE LLC 18401 ABENTH AVE BLDG B INDUSTRY CA 9L748 8382 005 048 DE ANZA HEIGHTS ruDDINGSTONE IA VENTURE TTC 18401 ARENTH AVE BLD6 B INDUSTRY CA 91748 8382 005 049 DE ANZA HEIGHTS PUDDINGSTONE tA VENTURE TtC 18401 ARENTH AVE BLDG B INDUSTRY CA 9L748 8382 005 0s0 DE ANZA HEIGHTS PUDDINGSTONE I.A VENTURE TLC 184Ol ARENTH.AVE BLDG B INDUSTRY CA 91748 8382 006 051 DE ANZA HEIGHTS PUDDINGSTONE LA VENTURE LLC 18401 ARENTH AVE BLDG B INDUSTRY CA 9L748 8382 006 052 DE ANZA HEIGHTS PUDDINGSTONE TA VENTURE LLC 18401 ARENTH AVE BLDG B INDUSTRY CA 91748 8382 005 053 DE ANZA HEICHTS PUDDINGSTONE LA VENTURE LTC 18401 ARENTH AVE BIDG 8 INDUSTRY CA 9L748 8382 006 054 DE ANZA HEIGHTS PUDDINGSTONE tA VENTURE TLC 18401 ARENTH AVE BLDG B INDUSIRY CA 9L748 8382 006 oss DE ANZA HEIGHTS PUDDINGSTONE LA VENTURE LIC 18401 ARENTH AVE BLDG B INDUSTRY CA 91748 8382 005 8ff) WALNUTSTREET COLDEN StrATE WATER CO 530 E FOOTHILL BLVD SAN DIMAS CA 91773 8382024170 SUN ROSE ST PUDDINGSTONE VILLAGE HOA PO BOX 7758 IA VERNE CA 91750 8382024L76 DE ANZA HEIGHTS PUDDINGSTONE VILTAGE HOA PO BOX 7758 tA VERNE CA 91750 8382 025 192 SUN ROSE ST PUDDINGSTONE VIILAGE HOA PO BOX 7758 TAVERNE CA 91750 8391 003 911 DAMIEN AVE METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 900s4 8391 021 059 BONITAAVE cHF,lNC 630 E FOOTHITT BLVD SAN DIMAS CA 9L773 - 8391026040 DAMIEN AVE STEVEV&TRINIEGMORA 3322 DAMIEN AVE I.AVERNE CA 91750 8391 026 070 DAMIEN AVE STEVEV &ATFRED M MORA 1416 ELYSIAN AVE POMONACA 91761 8664 oO9 901 PUDDINGSTONE CHANNEL CTTY OF tA VERNE 3560 D ST LA VERNE CA 91750 8554 m9 902 PUDDINGSTONE CHANNEL tA FLOOD COiITROI OIST 9OO S FREMONT AVE ATHAMBRACA 91803 EKilI'I'FIqU] PUDDINGSTONE CHANNEL CITY OF [A VERNE 3660 D ST TAVERNE CA 91750 8664 009 905 PUDDINGSTONE CHANNEL CITY OF tA VERNE 3660 D sT TAVERNE CA 91750 8554 010 030 PUDDINGSTONE CHANNET JOHN AND GTORIATORRES 4969 OtD RANCH ROAD LAVERNE CA 917s0 8654 010 031 PUDDINGSTONE CHANNET ROBERT L III & GAYE MCCOO!( 4973 OLD RANCH ROAD LA VERNE CA 91750
3
35 February 3, 2020, City Council Meeting Page No. 28 LOS ANGELES COUNTY DECLARATION LIST DATE: 0U0720 CIW OF TA VERNE KEY OF B, C|TY CODE 370 (UNIMPROVED)
PARCEL LOCATION OWNER MAILING ADDRESS CITYISTATE ZIP CODE 8654 010 032 PUDDINGSTONE CHANNEL JEFFD&EILEANNPTUMLEY 4981 OLD RANCH ROAD I.AVERNE CA 91750 8664 010 033 PUDDINGSTONE CHANNEL MARSHALL PETER BAND MONICA I 4985 OLD RANCH ROAD TAVERNE CA 91750 8654 010 034 PUDDINGSTONE CHANNEL DONALDJ SR & MARIA R MARROLII 4987 OLD RANCH ROAD TAVERNE CA 91750 8664 010 035 PUDDINGSTONE CHANNEL EDWARD & MARTHA STEVENSON TR 4991 OTD RANCH ROAD TAVERNE CA 91750 8664 010 036 PUDDINGSTONE CHANNET FRANK BIDDNLPH & JENNIFER L 1166 OAK KNOLLTERRACE I.A VERNE CA 917sO 85il 010 037 PUDDINGSTONE CHANNET SCHIRO, VITO & GIOVANNA 1162 OAK KNOLLTERRACE TAVERNE CA 917s0 8554 010 038 PUDDINGSTONE CHANNET DAWBER, BRIAN & ALISON 1158 OAK KNOLLTERRACE LA VERNE CA 91750 8664 010 039 PUDDINGSTONE CHANNEL FREDD&CHIN6HMILLER 1154 OAK KNOTLTERRACE LA VERNE CA 91750 8564 015 030 PUDDINGSTONE CHANNEL LINDA L WILKINSON 5077 OTD RANCH ROAD IAVERNE CA 91750 8664 017 (x)Z OtD WHEELER ROAD JOE S & ELIZABETH A BURKLE 37888 OAK GIEN ROAD YUCAIPACA 92399 8664 03s 019 4527 EMERALD AVE SHUI SHENG & YU CHIN CHANG 5550 BLUSAY ST IA VERNE CA 91750 gl.riF!] 8664 043 902 WHEELER AVE METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 8664 043 903 WHEELER AVE METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 90054 8555 019 133 PUDDINGSTONE CHANNEL ,UAN C & ALBAROSA CARRANZA 1338 CANYON VIEW DR IAVERNE CA 91750 8655 019 912 PUDDINGSTONE CHANNEL L A CO FLOOD CONTROL DIST 900 S FREMOiIT AVE ATHAMBRA CA 91803 8665 027 918 PUDDINGSTONE CHANNEL LA CO FIOOD CONTROL DIST 9OO S FREMONT AVE ALHAMBRA CA 91803 8555 027 920 PUDDINGSTONE CHANNET L A CO FLOOD CONTROT DIST 9(x) S FREMONTAVE ALHAMBRA CA Er:rF] 8665 027 921 PUDDINGSTONE CHANNEL L A CO FTOOD CONTROL DIST 9OO S FREMONT AVE ATHAMBRA CA 91803 8665 027 923 PUDDINGSTONE CHANNEL t A CO FLOOD CONTROT DIST 9OO S FREMONTAVE ALHAMBRACA 91803 8655 030 045 SAN DIMASCANYON RD ,OE S & ELIZABETH A BURKLE 37888 OAK GLEN ROAD YUCAIPA, CA 92399 865s 031 900 PUDDINC5TONE CHANNEL LA CO FLOOD CONTROL DIST 9OO S FREMONT AVE ALHAMBRACA FIII.E 8656 005 041 GRANADA IANE A&VMSBICCATR 1102I.AVENDER IANE I.A CANADA CA 91011 8566 005 044 MANZANITA CIRCLE ,ONATHAN & MELISSA BECKER TR 1935 PUDDINGSTONE DR LA VERNE CA 91750 8566 009 032 DAWN AVE SIEVE MANDELL 541 S GTENDORA AVE GLENDORA CA 9t74L 8556 051 028 ESPERANZA DR NORA BAKSHANDEH 3048 CTARMEYA TANE PASADENACA 91107 8566 051 029 YUCCA CIR NORA BAKSHANOEH 3048 CIARMEYA LANE PASADENA CA 91107 8655 054 038 ESPERANZA DR LAVERNE IIVE OAK HOMEOWNERS 9231ARCHIBALD AVE RCH CUCAMONGACA 91730 8555 058 904 51OO ESPERABZA DR METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 90054 glFl7l 8665 058 90s ESPERANZA DR M ETROPOLITAN WATER DIST P O BOX 54153 tOS ANGELES CA 8656 058 906 SHEMIRAN ST METROPOLITAN WATER DIST P O BOX 54153 TOS ANGETES CA 90054 rBevERrY 8655 0s9 (n9 ESPERANZA DR SOL LONG TERM IAND INVESTMENT PO BOX 11480 Hltts cA 90213 8666 059 901 RIDGEVIEW ST CIW OF LA VERNE 3650 D ST TA VERNE CA 91750
4 36 February 3, 2020, City Council Meeting Page No. 29 LOS ANGELES COUNW DECLARATION LIST DATE: 0U0720 CITY OF IAVERNE KEY OF B, CITY CODE 370 (UNIMPROVED)
PARCEL LOCATION OWNER MAILING ADDRESS ZIP CODE 8555 059 903 EDGEWOOD DR CITY OF I.A VERNE 3650 D ST tA VERNE CA 91750 8666 059 904 CANYON CREST DR METROPOLITAN WATER DIST P O BOX 54153 LOS ANGELES CA 90054 8666 059 908 RIDGEVIEW ST CIW OF TAVERNE 3660 D ST I.A VERNE CA 91750 8656 053 034 TEAL STREET LA VERNE LIVE OAK HOMEOWNERS 9231 ARCHIBATD AVE RCH CUCAMONGACA 91730 8578 021 912 ESPERANZA DR CITY OF LA VERNE 3560 D Sr I.A VERNE CA 91750 8678 021 914 ESPERANZA DR LA COUNTY 5OO W TEMPTE ST RM 548 LOS ANGETES CA 90012 8678 021 919 ESPERANZA DR CITY OF [A VERNE 3660 D ST TAVERNE CA 91750 8678022012 BRYDON RD SAMIR & MANATANABITR ETAL 7453 BRYOON ROAD tA VERNE CA 917s0 8678 022 901 GOLDEN HITLS RD CITY OF I.A VERNE 3660 D ST LA VERNE CA 9175O 8678 022 902 GOLDEN HITLS RD CITY OF IAVERNE 3660 D ST IAVERNE CA 91750 8678 023 010 GOTDEN HILls RD ERIC & JENNIFER SIMISON TR 1977 GOIDEN H]LI5 ROAD I.AVERNE CA 917sO 8678 023 020 MOUNTAIN SPRINGS RD CHOW, HERBERT W & ERIN J 5350 MOUNTAIN SPRINGS RANCH RD I.AVERNE CA 91750 8578 023 025 MOUNTAIN SPRINGS RD DEBORAH L ROBINSON TR 2252 FORBES AVE CTAREMONTCA 91711 86780,230.27 MOUNTAIN SPRINGS RD DEBORAH L ROBINSON TR 2252 FORBES AVE CI.AREMONT CA 91711 8678 023 031 MOUNTAIN SPRINGS RD GARY & LORI CHARTEBOIS TR 2025 BONITAAVE [A VERNE CA 91750 8678 024 021 SAN DIMAS CANYON RD AHMED,IQBATTR PO BOX 8181 LA VERNE CA 91750 8678024022 CHARMONT RD NARCIE J FERREIRA TR 8350 ARCHIBALD AVE STE 204 RCH CUCAMONGA CA 91730 8578 025 0s7 FOXFORD RD KUMAR KONERU 520 E FOOTHILT BLVD STE D POMONA CA 9L767 8678 027 029 GOTDEN HILLS RD SOL LONG TERM I.AND INVESTMENT PO BOX 11480 BEVERLY HILIS CA 90213 8578 027 035 GOLDEN HITIS RD SOL LONG TERM IAND INVESTMENT PO BOX 11480 BEVERLY HILTS CA 90213 8678 034 051 BELLA COTINA HERITACE HOMES OF CALIF INC 88OO E RAINTREE DR STE 3OO SCOTTSDATE AZ 8s260 8578 052 900 ESPERANZA DR CITY OF I.AVERNE 3650 D ST LA VERNE CA 91750 8678 066 021 ESPERANZA DR MURREY I SEIDNER CO TR 45OO ROSEMEAD BLVD ROSEMEAD CA 91770 8678067 270 CANYON CREST DR L A CITYDEPT OF WATER AND POWER P O BOX 51111 RM 633 LOS ANGELES CA 90051 8678067 27t CANYON CREST DR L A CITY DEPT OF WATER AND POWER P O BOX s1111 RM 633 LOS ANGELES CA 90051 8678 067 900 CANYON CREST DR CITY OF LAVERNE 3650 D Sr I.AVERNE CA 91750 8678 067 901 CANYON CREST DR ClWOF I-AVERNE 3650 D Sr I.AVERNE CA 91750 8678072047 VISTA DEL SOL MARSHATL CANYON ESTATES tTD P O BOX 570 UPLAND, CA 9178s 8578 073 013 vlsTA oELsot MARSHAIL CANYON ESTATES LTD P O BOX 670 UPIAND CA 91785 8678 073 900 VISTA DEL SOL CITY OF LA VERNE 3660 D Sr tA VERNE CA 91750 8678 074 020 SADDLE CREEK COURT IAVERNE OAKTREE ESTATES HOA 130 SCHAPARRATCTTl5O ANAHEIM CA 92808 8678014027 GOIDEN HILI.S RD I-AVERNE OAKTREE ESTATES HOA 130 SCHAPARRAICTfllSO ANAHEIM CA 92808
5 37 February 3, 2020, City Council Meeting Page No. 30 LOS ANGETES COUNTY DECLARATION LIST DATE: 0U07l20 CIW OF tA VERNE KEY OF B, CIW CODE 370 (UNIMPROVED)
ADDRESS ZIP CODE PARCET LOCATION OWNER MAILING
TOTAL VACANT/I MPROVED RECORDS 3 TOTAL UNIMPROVED RECORDS 157 TOTAL RECORDS 160
6 38 February 3, 2020, City Council Meeting Page No. 31 Agenda Report CITY OF LA VERNE Police Department
DATE: February 3,2020 TO: Honorable Mayor and City Council FROM: Nick Paz, Chief of Police' y'' /' SUBJECT: Tobacco Law Enforcement Grant Acceptance
The La Verne Police Department has applied for grant funding from the State of California Department of Justice (DOJ) for tobacco related enforcement and outreach programs in the City of La Verne. The Grantor requires the City to enter into a Memorandum of Understanding (MOU) and for the City Council to approve a resolution acknowledging that grant regulations and conditions contained in the MOU will be followed.
Staff recommends that the City Council approve Resolution 20-09 allowing the City Manager to enter into a Memorandum of Understanding with the DOJ to receive and administer grant funding under the terms of the MOU and approve appropriations necessary to facilitate the grant program.
ErefiGFAIIIEE
The Department of Justice's Tobacco Grant Program is funded by Proposition 56 (Prop. 56), Prop. 56 raised the cigarette tax by $2.00 per pack, with an equivalent increase on all other tobacco products. Prop. 56 allocates millions of dollars annually to the DOJ for distribution to local Iaw enforcement agencies for the support and hiring of police officers for various tobacco related activities including investigations, compliance checks and education in an effort to reduce the illegal sale of tobacco products to minors.
Within the City of La Verne there are 27 tobacco retailers all of which are within close proximity to parks and schools. This has led to an environment conduclve to underage smoking and associated problems affecting the La Verne Police Department and the community. The Police Department has been challenged with decreased staffing levels and budgets which has adversely affected tobacco related enforcement and education operations leading the Police Department to apply for this grant.
The primary goal of the grant is to provide a second school resources officer dedicated to educating and mentoring students in an effort to efficiently reduce addiction and related legal consequences among La Verne's minor population. The City of La Verne has previously been awarded tobacco related grants from the DOJ receiving over $46,000 in reimbursements during fisca! year 1 8/1 9.
39 February 3, 2020, City Council Meeting Page No. 32 Tobacco Law Enforcement Grant Acceptance February 3,2020 Page 2
FISCAL IMPACT:
The total amount awarded is $637,200. This is a reimbursable grant that will require the City to pay for approved costs prior to receiving reimbursement. The grant is ailocated to personnel services of $211,900 and equipment cost of $500 each year over the three fiscal years 19120,20121 and 21122.
Due to the timing of the grant approval, not all approved funds will be expended in fiscal year 19/20 as approved. Based on discussions with the grant administrators, un- expensed funds can be rolled forward intofisca! years 20121 and21t22 with the DOJ approval. Although the available funds currently exceed planned expenditures, the Police Department will make every effort to expend the full amount awarded.
40 February 3, 2020, City Council Meeting Page No. 33
RESOLUTION NO.20-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE' COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AUTHORIZING THE CITY OF LA VERNE TO AGCEPT A GRANT IN THE AMOUNT OF $637,200 FROM THE STATE OF CALIFORNIA DEPARTMENT OF JUSTICE, OFFICE OF THE ATTORNEY GENERAL, AND THE TOBACCO LAW ENFORCEMENT GRANT PROGRAM AND ENTER INTO A RELATED MEMORANDUM OF UNDERSTANDING
WHEREAS, the City of La Verne (City) desires to participate in the Tobacco Law Enforcement Grant Program, which is made available through The California Healthcare, Research and Prevention Tobacco Tax Act oi 2016 (Prop. 56) and administered by the California Department of Justice (DOJ) to support local efforts to reduce the illegal sale of tobacco products to minors in the City; and
WHEREAS, following the City's submittal of a proposal for the Program, the State of California Department of Justice (DOJ) offered to award $637,200 for the three year grant progr.rm beginning July '1, 2019 and ending June 30, 2022; and
WHEREAS, the grant funds will be used for police officer and staff overtime costs related to tobacco enforcement opeiations, personnel cost for a school resources officer, roll call training, local retailer inspection opeiations, operating costs, equipment, and DOJ sponsored training for Police Department Personnel; and,
WHEREAS, in order to be considered eligible to receive grant funding, the City must enter into a Grant Award Memorandum of understanding (MoU) with the state of california DoJ
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF LA VERNE
Section 1, The City Manager and designated representatives are hereby authorized on behalf of the City, to accepi grant funding in the amount of $637,200 from the State of Califomia DOJ.
Section 2. The City Manager and designated representatives are hereby authorized on behalf of the City, to execute a MOU between the City and the State of California DOJ not to exceed the dates specified in the MOU.
Section 3. The City Manager and designated representatives are hereby authorized and directed, on behalf of tne bity, to execute the grant documents and to submit all documents, includini, without limitation, contracts, amendments, extensions, and payment requests as appropr-iate to accept the funds under and comply with the conditions of the grant'
Section 4. The City Manager is hereby authorized and directed to establish all required accounts and make any all expenditures, appropriations, transfers, and/or distributions of funds on behalf of the City as ire necessary and appropriate to carry out the purpose and intent of this resolution.
Section 5. Grant Funds received hereunder shall not be used to supplant ongoing law enforcement expenditures.
41 February 3, 2020, City Council Meeting Page No. 34
Section 6. The Mayor shall sign and the Assistant City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force.
APPROVED AND ADOPTED this 3d day of February 2020.
Don Kendrick, Mayor ATTEST:
Lupe Gaeta Estrella, Assistant City Clerk
CERTIFICATION
I hereby certify that the foregoing Resolution No. 20-09 was duly and regularly adopted by the City Council of the City of La Verne at a meeting thereof held on the 3rd day of February 2020, by the following vote.
AYES: NOES: ABSENT: ABSTAIN
Lupe Gaeta Estrella, Assistant City Clerk
Resolution No. 20-09 2
42 February 3, 2020, City Council Meeting Page No. 35
DOJ -P RO P 5 6 -20L9 -20-7-032
MEMORANDUM OF UNDERSTANDING
PURPOSE This Memorandum of Understanding ("MOU") is entered into by the Department of Justice ("DOJ") and the La Verne Police Department (hereinafter, "Grantee"), to provide grant funds to Grantee for expenditure in compllance with the Grantee Handbook. The Grantee will expend funds for the purposes identified in the approved Grant Application submitted by Grantee in response to the DOJ's Request for Proposals for activities of Local Government Agencies to be funded under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (the "Act"), approved by the voters as Proposition 56.
The Request for Proposals, Grantee Handbook (dated November 2019), and Grant Application are hereby incorporated by reference into this MOU.
COST REIMBURSEMENT DOJ agrees to relmburse Grantee in arrears, for Grantee's actual expenditures in performing the Scope of Work included in the approved Grant Application, upon receipt of invoices from Grantee and approval of the invoices by DOJ, in accordance with the reimbursement procedures set forth in the Grantee Handbook.
BUDGET CONTINGENCY CIAUSE It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under the agreement does not appropriate sufficient funds for this MOU, this MOU shall be of no further force and effect. ln this event, the DOI shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this MOU and Grantee shall not be obligated to continue performing any provisions of this agreement for which it would have been reimbursed.
lf funding for any fiscal year is reduced or deleted in the Budget Act for purposes of this MOU, the DOJ shall have the option to either cancel this MOU with no liability occurring to the DOJ, or offer an amendment to the Grantee to reflect the reduced amount.
ADMINISTRATION Should Grantee fail to comply with this MOU, including any expenditures for purposes not permitted under the MOU, DOJ may take one or more of the actions described under Remedies for Noncompliance in the Grantee Handbook.
M ISCELLANEOUS PROVISIONS Amendment - No amendment or variation of the terms of this MOU is valid unless made in writing, and signed by the duly authorized representatives of the parties. Assignment - This MOU is not assignable by Grantee in whole or in part' lndemnification - Grantee agrees to indemnify and hold harmless the DOJ, its officers, agents and employees from all claims, liabilities, or losses in connection with the performance of this MOU. Termination - The DOJ may terminate this MOU and be relieved of any obligation to provide grant funds to Grantee should Grantee fail to perform the Scope of Work at the time and in the manner provided In this MoU.
Page I of2
43 February 3, 2020, City Council Meeting Page No. 36
DOJ - P RO P 5 6 -20L9 -20-]^-032
TERMS Grant Duration: 7211,/2019 - 6/3012022
Award Amount
Budget Budget Budget Category of Expenditure FY 20t9-2020 FY 2020-2021 FY 202t-2022
Personal Services s211,900 s211,900 s211,900
Operating Expenses and Equipment Ssoo Ssoo Ssoo
Administrative Costs (Not to Exceed 5%) So So So
TOTAL AWARD AMOUNT s637,200
The time limit for reimbursements against this award ends 6/30/2022. Requests received after 7115/2022 cannot be reimbursed by the DOJ.
GRANTEE CONTACT I NFORMATION Thomas Frayeh Lieutenant La Verne Pollce Department 2061 Third St. La Verne Ca. 91750 909-s96-1913 Tfrayeh@ lvpd.org
AUTHORIZATION The DOJ and Grantee, by their duly authorized officials, have executed this MOU on the respective dates indicated below. This MOU and any future amendments shall be mailed to the Division of Operations, Local Assistance Unit, Tobacco Grant program, and will become fully executed upon completion of signatures from all parties.
Bob Russi Date La Verne City Manager
Nick Paz Date La Verne Chief of Police
Nathan Statham Date La Verne Finance Manager
STACY HEINSEN, GRANT MGR. Date Division of Operations California Department of Justice
CHRIS RYAN, CHIEF Date Division of Operations California Department of Justice Page2 ofZ
44 February 3, 2020, City Council Meeting Page No. 37
SECOND READING - FebruarY 3,2020 ORDINANCE 1O9O
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAVERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING CASE NO' 2I-192C' A REQUEST BY HILLCREST HOMES TO CHANGE THE ZONE DESIGNATION FROM "PR4.5D" TO .,INSTITUTIONAL" FOR THE SITE LOCATED AT 16'19 HAWTHORNE AND 2549 MAGNOLIA.
WHEREAS, Hillcrest Homes has submitted an application requesting a Zone Change from PR4.5D to lnstitutional at 1619 Hawthorne and 2549 Magnolia; and
WHEREAS, Sections 65453 et seq. of the California Government Code authorize the Planning Commiss ion to consider and recommend action to the City Council concerning zone changes; and
WHEREAS, a notice of public hearing was published in the lnland Valley Daily Bulletin and mailed to all owners of properties within 300 feet of the property; and
wHEREAS, a Mitigated Negative Declaration was prepared in accordance with the California Environmental Quality Act (CEQA) and the La Verne Environmental Guidelines, finding no significant environmental impacts resulting from the project proposal with the proposed mitigation measures; and
WHEREAS, the city council conducted a duly noticed public hearing on January 21, 2020, and considered public testimony in accordance with city and state requirements.
WHEREAS, after the , close of the public hearing, the Planning Commission recommended approval of the Mitigated Negative Declaration for the Zone Change, recommended approval of the Zone Change, and in accordance with Chapter 18.112 of the La Verne Municipal code, approved 26-'1gMPA for a Hillcrest Master Plan Amendment.
NOW, THEREFORE, BE lT RESOLVED by the City Council of the City of La Verne as follows:
Section 1. Findings' ln approving the proposed Zone Change from PR45D to tnstitutional, the City couricit HeReai rtuos AND DETERMINES that Case No. 27-192c satisfies California Government Code Sec. 65354 et seq. and the findings of Section '18.1 'l2.060 of the La Verne Municipal Code in that: 1. The proposed Zone change will be consistent with the general plan. in.that the p,o""."forconsideringchangesin|anduseand.zoningisinkeepingwithLaVerne beneral plan and stat6 law, which require a noticed public hearing and a Planning commission recommendation, and city council consideration at a noticed public approval of the hearing and approval prior to making such a change. conditions _of. f.;""i it,'"t tn" change is consistent with all elements of the general plan in"traing"n"rr" land use, historic preservation, housing, and community design' The
45 February 3, 2020, City Council Meeting Page No. 38
amendment will enable the construction of additional senior housing units in conjunction with Hillcrest Homes. 2. The proposed general plan designation change serves the public necessity, convenience, and general welfare in that it provides a foundation for and is consistent with the adjustment of the zoning of an isolated lot so that permitted uses and standards are consistent with adjacent land, thereby allowing two parcels of land adjacent to Hillcrest Home property to be developed with a low-impact senior residential development that will bring high quality housing to the La Verne community. This is accomplished by changing the general plan land use designation of the lot from low density residential to community facility.
3. The proposed change to community facility is consistent with good city planning and zoning practices in that.it designates Hillcrest Homes property to Community Facility, to be consistent with the rest of the facility.
Section 3. Approval. Based upon the above findings, the City Council HEREBY APPROVES the proposed zone change and accompanying environmental documents. The zone change will change the designation from PR4.5D to lnstitutional for the properties located at 1619 Hawthorne and 2549 Magnolia.
Section 4. The Mayor.shall sign and the Assistant City Clerk shall attest to the passage of this ordinance.
PASSED, APPROVED AND ADOPTED this 3'd day of February, 2020.
Don Kendrick, Mayor
ATTEST
Lupe Gaeta Estrella, Assistant City Clerk
2 Ordinance No. 1090 46 February 3, 2020, City Council Meeting Page No. 39
CERTIFICATION
The foregoing Ordinance No. 1090 was introduced at a regular meeting of the City Council of said City Auty held on 21't day of January,2020 and was thereafter, at a regular meeting of said Council duly held on 3'd day of February, 2020 duly passed and adopted by the said City Council and thereupon duly signed by the Mayor of said City, attested by the City Clerk of said City, and passed and adopted by the following vote:
AYES: NOES: ABSENT: ABSTAIN:
Lupe Gaeta Estrella, CMC Assistant City Clerk
Ordinance No. 1090 47 February 3, 2020, City Council Meeting Page No. 40
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48 February 3, 2020, City Council Meeting Page No. 41
Agenda Report CITY OF LA VERNE Community Development Depaftment
DATE: February 3,2020
TO: Mayor and City Council
FROM: Eric Scherer, AICP, Community Development Director SUBJECT: Case No. 90-19VAC - Hillcrest Homes - 2548 Magnolia Avenue, 2551 Park Avenue, and 1619 Havvthorne Avenue - Request to vacate an alley in conjunction with the construction of '14 attached/detached senior homes
AGENDA SUMMARY
The City Council has conditionally approved 26-1gMPA, 27-192C, and 88-1gGPA to modify and develop Neighborhood 6 of the Brethren Hillcrest Homes (Hillcrest) Master Plan. The proposed project includes construction of '14 attached/detached senior homes with common landscaped area on approximately 1.7 acres. The project is proposing the City vacate the alley fronting the northem boundary of the project site.
RECOMMENDATION:
Staff, the Development Review Committee, and the Planning Commission recommend that the City Council conditionally approve Case Number 90-'19VAC, adopting Resolution Numbers 20- 6, based on this report and the conditions of approval.
The Development Review Committee has conditionally approved Case Numbers 24-19PPR and 25-19PM, and the City Council has conditionally approved 26-19MPA, 27-192C, and 88- '19GPA, contingent on the approval or 90-19VAC.
BACKGROUND:
The project is proposing the City vacate the alley fronting the northern boundary of the project site located at 2548 Magnolia Avenue, 2551 Park Avenue, and 1619 Hawthorne Avenue.
The Public Works Department has determined that the City has no use for this alley as it is internal to the. Hillcrest campus and will be closed to through traffic with the proposed development. The Planning Commission determined that the City's disposal of the alley is consistent with the practices of the City of La Verne General Plan:
'1. ls the street unnecessary for present or prospective public use?
This alley is currently only used by Hillcrest homes employees and residents, as it is interior to their campus.
49 February 3, 2020, City Council Meeting Page No. 42
City Council Agenda Report Hillcrest Homes 90-1 9VAC February 3,2020
2. ls the street planned to carry future through traffic?
The alley will not be open to through traffic. There will be a dead end. Additionally, the La Verne General Plan does not identify the street as a planned collector or arterial highway.
3. Does the proposed vacation promote the goals and policies of the general plan?
This street vacation promotes the following policies of the General Plan. The vacation of the street will not negatively impact the surrounding neighborhoods; will provide additional housing on a vacant lot.
Based on these findings, the Planning Commission determined that the street vacation is consistent with the General Plan (Resolution Number 1251).
Environmental Review:
Staff has engaged an independent consultant, LSA Associates to prepare an lnitial Study/Mitigated Negative Declaration for the project in accordance with the California Environmental Quality Act and The City of La Verne's Environmental Guidelines. Staff finds that with certain mitigation measures, the project will not have a significant impact on the environment. The lnitial Study was attached to the previous City Council Agenda Report for the City Council's reference as Attachment E. The notice of availability and intent to adopt a Mitigated Negative Declaration was sent to the Los Angeles County Recorder's office on September 13, 2019 and published in the lnland Valley Daily Bulletin on September 16, 2019.
Public Noticing:
A notice was sent out to the surrounding neighborhood inviting them to a public workshop that was held on July 22, 2019. A few adjacent residents attended the meeting and no concerns were raised. The Notice of Public Hearing for this City Council meeting was mailed to all adjacent property owners within 300' of the subject property on January 6,2020 and published in ine lnland Valley Daily Bulletin on January 6, 2020. Staff has not received any feedback from the surrounding neighborhood.
The notice was also posted on site in 6 different locations along the alley north of Hawthorne between Magnolia and Park on Wednesday, January 1stn.
Respectfully submitted by: Candice Bowcock. Principal Planner
Attachments: A. Draft Conditions of Approval B. PC Resolution Number 1251 (90-19VAC) C. Draft CC Resolution Number 20-6
2 50 February 3, 2020, City Council Meeting Page No. 43
DRAFT CONDITIONS OF APPR
Case Numbers: Case No. 24-19PPR, 25-19PM, 26-19MPA, 27-192C,88-19GPA, 90-19VAC Hillcrest Homes 2548 Magnolia Avenue
The above applications are interdependent and therefore there is a "maste/' list of conditions for the entire project. They are as follows:
1. Approval is based on updated submitted plans. All improvements shall conform to the approved plans on file with the Community Development Department. Plans not up to date at the time of approval shall be corrected and submitted to the Community Development Department prior to submiftal of plans for plan check. All plans shall be consistent with one another. Changes shall be reviewed and subject to approval by the Community Development Department.
2. Applicant, owner, developer, and/or successors in interest are responsible for complying with conditions. "Applicant" in this report and conditions of approval means owner, developer, and successors in interest.
3. The applications are interdependent. Approval of each application is contingent upon approval of all. lf any are denied, all are denied. However, changes in architectural details, landscaping, and similar changes to the precise plan that do not alter the basic layout of the subdivision may be made without affecting the group of approvals.
4. Violations of any of the conditions of approval shall be grounds for revocation of this approval.
5. The applicant shall comply with all checked conditions on the attached list entitled "Standard Conditions".
6. A minor precise plan shall be required for approval of model homes, including temporary parking and access to model homes.
7. An affidavit acknowledging and agreeing to all conditions stated herein and the standard list of conditions shall be signed and returned to the Community Development Department prior to the issuance of grading permits.
8. The Hillcrest Resident Handbook shall include provisions for maintenance of common open spaces and private streets and the keeping vehicle access areas clear; maintenance of all landscaping; appropriate storage of trash receptacles; prohibition of motion-detector or other bright lights adjacent to single-family properties; provision of automatic, roll-up garage doors; appropriate location of trash receptacles for pickup; and limitations on use of guest parking spaces and
ATTACHI'/IENT A 51 February 3, 2020, City Council Meeting Page No. 44 DR{Ff Conditions OfApproval- Hillcrest Page2
RV parking (within a garage only) shall be prepared by the applicant and submitted for review and approval by the City Attorney, City Engineer, and Community Development Department prior to recordation. A signed and recorded copy shall be provided to the City prior to occupancy.
9. Applicant shall adhere to all mitigation monitoring measures and programs as described in the adopted initial study and mitigated negative declaration for the project.
10.The engineer or surveyor shall set durable monuments to the satisfaction of the City Engineer, in conformance with 66495 of the Subdivision Map Act.
11. Final improvement plans shall be accompanied by adequate plans for drainage improvements prepared by a registered professional engineer, to be reviewed and approved by the City Engineer.
12. Development of the Parcel Merger shall be consistent with the General Plan and the La Verne Municipal Code.
1 3. The Parcel Merger Map shall comply with all applicable provisions of Title 16 of the La Verne Municipal Code and the subdivision map act.
14.The applicant shall indemnify, protect, defend (with legal counsel acceptable to the City), and hold harmless the City and any agency or instrumentality thereof, and its elected and appointed officials, officers, employees, and agents from and against any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs, and expenses of whatever nature, including reasonable attorney's fees and disbursements (collectively "Claims") arising out of or in any way relating this project, any discretionary approvals granted by the City related to the development of the project, or the environmental review conducted under the California Environmental Quality Act, Public Resources Code Section 21000 et. seq., forthe project. lf the City Attorney is required to enforce any conditions of approval, all costs, including attorney's fees, shall be paid for by the applicanUdeveloper or successors in interest. The proposed project shall connect to, and where necessary, grant easements for utilities.
15. Comprehensive engineering, geologic and soils reports based on adequate test borings shall be performed pursuant to Section 66490 of the Subdivision Map Act. lf there are subsequent geologic and soils reports they shall be submitted for approval by the City Engineer. Additional geotechnical investigations shall evaluate the potential hazards posed by shallow groundwater and shall include, if necessary, design and engineering recommendations to mitigate potential safety hazards.
52 February 3, 2020, City Council Meeting Page No. 45 Di,4FZ Conditions OfApproval- Hillcrest Page 3
l6.Applicant shall provide the City with verification of the approved map(s) with the Recorder's Office of the County of Los Angeles prior to issuance of grading permits.
17.The applicant shall pay required fees to the Los Angeles County Sanitation District associated with the connection to sewer lines as required by the LA County Sanitation District.
18. Easements for all utilities including water, sewer, and storm drains shall be provided to the City as required by the City Engineer and Public Works Director.
19.All proposed on-site facilities for electric, gas, telephone, and cable television shall be placed underground. Cable television conduits shall be installed to the satisfaction of the local cable company.
20.The existing overhead power line on Magnolia Street shall be placed underground to the satisfaction of CA Edison and the Public Works Director.
21.Telephone, gas, elechic, and cable companies shall be consulted for planning, construction and proper placement of service facilities prior to installation of those facilities. Transformer vaults shall not block access for emergency and fire vehicles. All vaults, switch boxes and similar equipment shall be screened to the extent possible considering safety and access. Location and screening of utility vaults shall be reviewed and approved by the Community Development Department prior to issuance of building permits.
22.lmprovement plans and necessary letters of credit, cash bonds to secure the construction of all streets, storm drains, water and sewer facilities, grading and landscaping shall be submitted and approved by the City prior to recordation of any final map.
23.Any retaining walls necessitated by grading shall be reviewed by Community Development staff prior to issuance of grading permits.
24.Any encroachment permit shall be obtained from the Public Works Department prior to any work in the existing public right-of-way.
25.Soils treatment shall comply with all recommendations in the soils report reviewed and approved by the City Engineer.
26.The Phase I and Phase ll Reports shall be reviewed and approved by the City Engineer and subsequently implemented.
27.All additional requirements of the City Engineer, City Traffic Engineer, and Public Works Department shall be met prior to issuance of building permits.
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28. The applicant shall comply with all National Pollutant Discharge Elimination System requirements and Low lmpact Development Standards. The applicant must comply with the Stormwater Pollution Prevention Plan (SWPP). There shall be a street maintenance program, including continual cleaning of surrounding public streets, and a program to control displaced earth from grading and soil eroded by rains during construction using temporary control measures such as sandbagging, perimeter berming and temporary sediment basins.
29.The applicant shall comply with all South Coast Air Quality Management District requirements. During grading, a watering program shall be established to adequately reduce on and off site dust. Grading is prohibited during high wind conditions.
30. The applicant shall comply with the City's noise ordinance during the construction period. Hours of operation shall be 7 a.m. to 8 p.m. or dusk, whichever is earlier, Monday through Saturday. No construction-related disturbances to the neighborhood shall occur outside allowable hours without prior approval by the City Manager.
31 . The applicant shall provide a safe method of adequate vector control prior to clearance and grading. All refuse and debris shall be removed from the property, and the property shall be kept clean and lifter free.
32. Guest parking shall be marked and reserved for temporary use by guests and not used as adjunct parking by residents. Parking in undesignated areas shall be prohibited.
33. Garage doors shall be automatic roll-up types.
34. The Hillcrest Resident Handbook shall require the retention of a landscape service that includes removal of green waste from the property.
35.Waste Management shall review and approve plans to ensure access by refuse trucks to pick up trash and recycling receptacles. There shall be a designated area of sufficient size on the individual properties for trash and recycling receptacles. Receptacles shall be moved to designated pick-up spots for pick up on trash days and otherwise be kept out of sight.
36.The storage of any motor home, recreational vehicle, trailer, dismounted camper unit or boat shall be permitted only within a garage.
37. Style, material, height, and illumination levels of on-site light fixtures shall be reviewed, approved and installed prior to occupancy of any unit. The lighting plan shall be submitted to the City Engineer for review and approval. Lighting shall be directed to the project site and not spill out onto adjacent properties. No bright
54 February 3, 2020, City Council Meeting Page No. 47 DR { F7" Conditions Of Approval- Hill$est Page 5
lights or bright motion detection lights shall be installed adjacent to single-family properties.
38. Final landscaping and irrigation plans shall be submitted to the City Landscape Architect for approval prior to issuance of building permits.
39. A landscape maintenance plan shall be submitted to the City Landscape Architect for approval and upon approval shall be incorporated fully or by reference into The Hillcrest Resident Handbook.
40.Wall plans shall be reviewed and approved by the Community Development Department prior to issuance of building permits.
41.All walls shall be constructed of a decorative material, such as slump stone or split face, subject to final approval by the Community Development Department.
42.lnterior fence design, location, materials and colors shall be reviewed and approved by the Community Development Department and the Fire Department prior to issuance of building permits.
43. Mailbox design and location shall be reviewed and approved by the Community Development Department and the U.S.P.S.
44.The homes shall contain the details, windows, garages, walls, gates, trim, and all other features shown on the elevations unless the City approves revised elevations. Construction drawings shall include the same quality and design as shown on the approved elevations. Any changes shall specifically be subject to the review and advance approval by the Community Development Department.
45.The required fire flow shall be installed and made serviceable before and during the time of construction involving combustible materials.
46. Before construction begins involving combustible materials, the site shall be accessible to the Fire Department by way of access roadways with an adequate surface of not tess than twenty feet and capable of supporting imposed loads of equipment and other requirements of the Fire Department, with adequate roadway turning radius. Access shall be maintained in serviceable condition during construction.
47 .Fire hydrants shall be installed as directed by the Fire Department.
48. Fire sprinklers shall be installed in each structure to the satisfaction of the Fire Department.
49.All Fire Code requirements shall be met.
55 February 3, 2020, City Council Meeting Page No. 48 DR4FIConditions OfApproval - Hillcrest Page 6
50.The applicant will be responsible to make any improvements necessary to public utilities based on the proposed project's impact to those utilities.
51 . The City of La Verne shall construct the widening of Havvthorne Street. Hillcrest agrees to pay the city one-half the cost of the awarded contract, to a maximum of $85,000. lf the final contract is less than $170,000, the city and Hillcrest would share equally in the savings.
52.The applicant shall comply with all tree protection and mitigation conditions outlined in the City's Municipal Code, Chapter 18.78.
53. Any grading that might occur should be carefully planned so as to avoid encroachment on the deodar cedar's protected zones.
54.Applicant shall present a Tree Protection Plan (which must include these conditions).
55.The chain link and steel stake tree protection fencing required in 18.78.160 B shall be inspected and approved by a Certified Arborist, city landscape architect and/or City Community Development Director prior to grading.
56.A Certified Arborist shall be present during construction activities that are within the driplines of the deodar; the Certified Arborist should be notified a minimum of 48 hours prior to any work within the driplines.
57. The Certified Arborist shall inspect the tree and condition of protective measures every 14 days during construction.
58. ln addition to 18.78.160 A - Equipment, materials and vehicles shall not be stored, parked or operated within the protected zone of the tree. Excess material shall not be dumped within the protected zone.
59.Where recommended by the arborist, root collars of all protected trees are to be at finish grade or slightly above.
60.All refuse removal, vegetation removal and site cleanup done under the tree drip line shall be done using hand equipment only.
61. Monitoring shall be conducted by a Certified Arborist, approved by the City Community Development Director, for a minimum of five years and shall be reported at least annually to the City.
62. Preserved and planted "heritage" hees (oaks) shall be maintained by The Hillcrest Resident Handbook, may not be removed without City approval, and any replacement shall be subject to the Heritage Tree Ordinance (LVMC 18.78)'
56 February 3, 2020, City Council Meeting Page No. 49 DR4FfConditions OfApproval - Hillcrest Page 7
63. ln order to assure a fire lane is not blocked there is an added condition of approval to require the applicant to install "No Parking" sign in the alley, and paint the curbside red.
64. Mitigation measures listed in the Mitigated Negative Declaration shall be followed.
57 February 3, 2020, City Council Meeting Page No. 50
I RESOLUTION NO. 1251 2 J A RESOLUTION OF THE PLANN]NG COMMISSION OF THE CITY OF LA VERNE, 4 COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, FINDING THAT THE 5 PROPOSED STREET VACATTON (CASE NUMBER 90-1gVAC) OF A PRTVATE 6 ALLEY BETWEEN PARK AVENUE AND MAGNOLIA STREET WILL NOT BE IN 7 CONFLICT WITH THE ADOPTED GENERAL PLAN OF THE CITY OF LA VERNE 8 AND RECOMMEND APPROVAL OF THE APPLICATION TO THE CITY COUNCIL. 9 l0 WHEREAS, this alley was not utilized for through vehicle traffic, but only as an ll additional access to Hillcrest Homes retirement community (private property); and t2 13 WHEREAS, Government Code Section 65402 requires that the Planning 14 Commission review proposed street vacations and their conformance with the City's 15 adopted General Plan; and 16 t7 WHEREAS, a Mitigated Negative Declaration was prepared in accordance with 18 the California Environmental Quality Act (CEQA) and the La Verne Environmental t9 Guidelines, finding no significant environmental impacts resulting from the project 20 proposalwith the proposed mitigation measures; and 21 )) NOW, THEREFORE, BE lT RESOLVED by the Planning Commission of the 23 City of La Verne: 24 25 Section 1. Findings. The Planning Commission HEREBY FINDS and 26 DETERMINES that the proposed street vacation as illustrated in "Exhibit C" attached 27 hereto, is in conformance with the City's adopted General Plan in accordance with 28 Section 65402 of the California Government Code. 29 30 Section 3. Signature. The Chairman shall sign and the Secretary shall attest 3l to the adoption of Resolution No. 1251. 32 JJ APPROVED AND ADOPTED this 13th day of N 2019, by the Planning 34 Commission at La Verne, California 35 a 36 37 38 nning tssron 39 ATTEST 40 41 42 43 44 Secretary, Planning Commission
ATTACH]I/|ENT B
58 February 3, 2020, City Council Meeting Page No. 51
RESOLUTION NO. 20.6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING THE SUMMARY VACATION (CASE NUMBER 9O.1gVAC) OF AN ALLEY BETWEEN PARK AVENUE AND MAGNOLIA STREET FOR THE PURPOSE OF HILLCREST HOMES PRIVATE USE AND APPROVING THE MITIGATED NEGATIVE DECLARATION PREPARED FOR THIS PROJECT.
NOW, THEREFORE, the La Verne City Council HEREBY RESOLVES as follows:
Section 1. The City Council HEREBY FINDS that the proposed alley vacation, as described in Exhibit A and depicted in Exhibit B of this resolution, has not been used for the public purpose for which is was dedicated or acquired during the last five years.
Section 2. That the public alley, as described in Exhibit A and depicted in Exhibit B of this resolution, is HEREBY VACATED by the authority of Section 8333 (a) of the California Streets and Highways Code.
Section 3. The City Council HEREBY FINDS that this action should not have a significant effect upon the environment and adopts the prepared Mitigated Negative Declaration and lnitial Study.
Section 4. The Assistant City Clerk shall cause a certified copy of the resolution of vacation, attested by the clerk under seal, to be recorded without acknowledgment, certificate of acknowledgment, or further proof in the Office of the Recorder of the County of Los Angeles.
Section 5. The Mayor shall sign and the City Clerk shall attest to the approval of this Resolution.
PASSED, APPROVED AND ADOPTED this 3'd day of February 2O2O by the following vote
AYES: NOES: ABSENT: ABSTAIN:
Mayor, City of La Verne
ATTEST:
Lupe Estrella, Assistant City Clerk
I I c
59 February 3, 2020, City Council Meeting Page No. 52
EXHIBJT 66A"
LEGAL DESCRIPTION FOR ALLEY VACATION
THAT IO.O2 FOOT ALLEY AS SHOWN ON THE EOLINE TRACT, IN THE CITY OF LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2I PAGE 169 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, WHICH LIES BETWEEN THE NORTHERLY PROLONGATION OF THE WEST LINE OF LOT 7 IN BLOCK 1 OF SAID TRACT AND THE NORTHERLY PROLONGATION OF THE EAST LINE OF LOT 4 OF PARCEL MAP NO. 23837 IN SAID CITY, COUNTY AND STATE FILED IN BOOK 278PAGES 58 AND 59 OF PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
RESERVATION OF EASEMENT
RESERVING TINTO THE CITY OF LA VERNE AN EASEMENT FOR SANITARY SEWER PTIRPOSES WITHIN THE ABOVE DESCRIBED VACATED ALLEY PARCEL.
THE ALLEY VACATION PLAT EXHIBIT *B'' IS ATTACHED HERETO AND MADE A PART HEREOF
This legal description was prepared by me or under my supervision in accordance with the requirement of the Professional Land Surveyors Act.
).
Eric J. LS 8256 Date LS.82s6 E)A.12€1.19
60 February 3, 2020, City Council Meeting Page No. 53 l--. m TI m (/)l- EXHIBIT -l ttt rg u) ALLEY ris VACATION PLAT \TQ E \ 65' sJ \ i$, ALLEY ss LU 5 IJJ 5 L'J= =l{t { o(6 UNE 0F vffr Lof 7 0F oll E0tLlNE IRACI W( 2t P. 169 0F UA,PS N, 80'
EAST UNE OF Lc7T 1 { P.il. N0. 2JN7 WK 278 PACfi fi NO 59 OF PRC& MB v { q o { a- tD= HAWTHORNE E AVENUE
OI{NER: o- LEGENO: LS.8256 HIUCREST * t2-5t-t9 * PRTPARM gf: 2705 ilauinilN 77777 ilLEY AREA TO BE VACAIED wEyt DR. ANDREASEN ENGIVEERING u WRNE, A. 9t750 , INC. Englneorlng Suntylng t Eaghcodng OF ffi Norlh Po* Avqw, pomono, Colllomlo 91768 (909) 623-rs95 Fox (otB) 620-mt6 Not- m tugio 61 JN311,4 February 3, 2020, City Council Meeting Page No. 54
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62 February 3, 2020, City Council Meeting Page No. 55
Agenda Report CITY OF LA VERNE City Manager's Office, Finance Division
DATE: February 3, 2020 TO: Honorable Mayor and City Council FROM: Nathan Statham, Finance Manager SUBJECT: Comprehensive Annual Financial Report for June 30, 2019
AGENDA SUMMARY:
The City has prepared its Comprehensive Annual Financial Report (CAFR), which has been audited by our outside independent audit firm - Rogers, Anderson, Malody & Scott, LLP (RAMS). The CAFR reflects the financial position and operating activities of the City for the fiscal year ending June 30, 2019. A full copy of the report can be accessed on the City’s web site at: https://www.cityoflaverne.org/index.php/documents/finance/comprehensive-annual- report/1537-comprehensive-annual-financial-report-2019/file
As part of the Financial Statement audit, RAMS has issued their Report on Internal Control over Financial Reporting and on Compliance and Other Matters. This report is required for audits performed in Accordance with Government Auditing Standards.
RAMS has also presented their concluding Auditor Letter to the City Council pertaining to the audited financial statements for the year ended June 30, 2019. This communication is required under Statement on Auditing Standards No. 114.
Additionally, RAMS was engaged to prepare the Addendum to the Annual Progress Report of the Housing Successor of the City of La Verne required under Senate Bill 314 pertaining to the City’s housing activities.
RECOMMENDATION:
Staff recommends that the City Council receive and file the Comprehensive Annual Financial Report, Report on Internal Control over Financial Reporting and on Compliance and Other Matters, and Auditor Letter to the City Council for the year ended June 30, 2019.
63 February 3, 2020, City Council Meeting Page No. 56 Comprehensive Annual Financial Report February 3, 2020 Page 2
BACKGROUND:
The City of La Verne Municipal Code as well as State Law requires an annual audit of the City's financial records by an outside independent certified public accountant. As an independent auditing firm of certified public accountants, RAMS has completed the City's annual audit for the fiscal year ended June 30, 2019. Their audit was performed in accordance with auditing standards generally accepted in the United States of America and Governmental Auditing Standards. In the auditor’s opinion, the City's CAFR presents fairly in all material respects the financial position and results of operations for the year ended in accordance with generally accepted accounting principles. In short, our auditors have affirmed that the accounting records and financial presentations are proper and reflect positively upon our commitment to be accountable to the citizens concerning our financial resources. The Independent Auditor’s Report is included on pages 1 – 3 of the City’s CAFR and contains an unmodified opinion, which is the highest level of assurance an Independent Auditor can give.
As part of the required reporting for an audit performed in accordance with Government Auditing Standards, RAMS issued a report on its consideration of the City’s internal controls for purposes of performing the audit as well as procedures performed to test compliance with certain laws, regulations, contracts and grant agreements. There were no findings or deficiencies found based on the procedures performed.
In their letter to City Council, the auditors outline significant accounting estimates made by the City and the procedures they performed to determine the reasonableness of those estimates. The auditors also report that the financial statement disclosures are neutral, consistent and clear. The City had no uncorrected misstatements and the auditor’s letter does not contain any findings.
The City is required to prepare certain reporting information in accordance with the reporting provisions of the California Health & Safety Code Section 34176.1 as amended by Senate Bill 341 (Chapter 796, Statues of 2013, effective January 2014) ("SB341 "), and as amended by Senate Bill 107 (Chapter 325, Statutes of 2015, effective January 2016) HSC Section 34176.1 (f). RAMS has prepared the Addendum to the Annual Progress Report of the Housing Successor of the City of La Verne as of June 30, 2019 and for the year then ended so the City can meet those reporting requirements.
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December 26, 2019
To the Honorable City Council City of La Verne, California
We have audited the financial statements of the City of La Verne (the City) as of and for the year ended June 30, 2019, and have issued our report thereon dated December 26, 2019. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated May 6, 2019, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
65 February 3, 2020, City Council Meeting Page No. 58 The Honorable City Council City of La Verne Page 2
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, during the year, the City changed its methods of accounting for Fiduciary Activities and Debt by adopting Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities and GASB Statement No. 88, Certain Disclosures Related to Debt, Including Borrowings and Direct Placements. The application of these accounting changes did not require a cumulative effect change to the beginning of year Statement of Activities. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on 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 markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
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 taken as a whole.
Management’s estimate of depreciation expense is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole.
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Management’s estimate of the net pension liability and related deferred inflows and outflows of resources is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the net OPEB liability and related deferred inflows and outflows of resources is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.
The disclosure of accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosure of net pension liability and related deferred inflows and outflows of resources in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The disclosure of net OPEB liability and related deferred inflows and outflows of resources in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The financial statement disclosures are neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements reported.
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Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 26, 2019.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Very truly yours,
December 26, 2019
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December 26, 2019
Roger, Anderson, Malody & Scott, LLP 735 E Carnegie Drive Suite 100 San Bernardino, CA 92408
This representation letter is provided in connection with your audit of the basic financial statements of the City of La Verne (the City) as of June 30, 2019 and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 26, 2019.
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated May 6, 2019, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
2. We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
3. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
4. We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
5. We have reviewed, approved, and taken responsibility for the financial statements and related notes.
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6. We have a process to track the status of audit findings and recommendations.
7. We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
8. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
9. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.
10. All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed.
11. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
12. All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed.
13. All funds and activities are properly classified.
14. All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.
15. All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved.
16. Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
17. All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
18. All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis.
19. All interfund and intra-entity transactions and balances have been properly classified and reported.
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20. Special items and extraordinary items have been properly classified and reported.
21. Deposit and investment risks have been properly and fully disclosed.
22. Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
23. All required supplementary information is measured and presented within the prescribed guidelines.
24. With regard to investments and other instruments reported at fair value: a. The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. b. The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. c. The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP. d. There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.
25. With respect to the nonattest services provided, we have performed the following: a. Made all management decisions and performed all management functions; b. Assigned a competent individual to oversee the services; c. Evaluated the adequacy of the services performed; d. Evaluated and accepted responsibility for the result of the service performed; and e. Established and maintained internal controls, including monitoring ongoing activities.
Information Provided
26. We have provided you with: a. Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; b. Additional information that you have requested from us for the purpose of the audit; and c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
27. All transactions have been recorded in the accounting records and are reflected in the financial statements.
28. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
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29. We have provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, and if necessary, our analysis of management’s plans, and our ability to achieve those plans.
30. We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a. Management; b. Employees who have significant roles in internal control; or c. Others where the fraud could have a material effect on the financial statements.
31. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, vendors, regulators, or others.
32. We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements.
33. We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware.
34. There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices.
35. The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
36. We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
37. We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
38. We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds.
39. There are no: a. Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the
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financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. b. Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62 d. Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
40. The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
41. We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
Supplementary Information in Relation to the Financial Statements as a Whole
With respect to the supplementary information (SI) accompanying the financial statements:
42. We acknowledge our responsibility for the presentation of the SI in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). 43. We believe the SI, including its form and content, is fairly presented. 44. The methods of measurement or presentation have not changed from those used in the prior period. 45. We believe the following significant assumptions or interpretations underlying the measurement or presentation of the SI, and the basis for our assumptions and interpretations, are reasonable and appropriate. 46. We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information. 47. We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor’s report thereon.
Required Supplementary Information
With respect to the required supplementary information (RSI) accompanying the financial statements:
48. We acknowledge our responsibility for the presentation of the RSI in accordance with accounting principles general accepted for government in the United States of America (U.S. GAAP).
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49. We believe the RSI, including its form and content, is measured and fairly presented in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). 50. The methods of measurement or presentation have not changed from those used in the prior period.
Nathan Statham (Finance Manager)
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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
Independent Auditor’s Report
To the Honorable City Council City of La Verne, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Verne (the City) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 26, 2019.
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) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions 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.
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Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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.
San Bernardino, California December 26, 2019
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CITY OF LA VERNE LA VERNE, CALIFORNIA
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Prepared By Finance Department
77 February 3, 2020, City Council Meeting Page No. 70 CITY OF LA VERNE, CALIFORNIA Comprehensive Annual Financial Report Year ended June 30, 2019
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Transmittal Letter ...... i
List of Principal Officials ...... v
Organization Chart ...... vi
FINANCIAL SECTION
Independent Auditor's Report ...... 1
Management’s Discussion and Analysis ...... 4
Basic Financial Statements:
Government-wide Financial Statements: Statement of Net Position ...... 16 Statement of Activities ...... 17
Fund Financial Statements: Governmental Funds: Balance Sheet ...... 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ...... 21 Statement of Revenues, Expenditures, and Changes in Fund Balances...... 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...... 24
Proprietary Funds: Statement of Fund Net Position ...... 25 Statement of Revenues, Expenses, and Changes in Fund Net Position ...... 29 Statement of Cash Flows ...... 31
Fiduciary Funds: Statement of Fiduciary Net Position ...... 35 Statement of Changes in Fiduciary Net Position ...... 36
Notes to the Basic Financial Statements ...... 37
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TABLE OF CONTENTS
Page FINANCIAL SECTION (continued)
Required Supplementary Information:
Notes to Required Supplementary Information ...... 86
General Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 87
Housing Successor: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 88
Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios as of the Measurement Date – Last 10 Years ...... 89
Schedule of Plans’ Contribution – Last 10 Years ...... 90
Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years ...... 91
Schedule of OPEB Contributions – Last 10 Years ...... 92
Supplementary Schedules:
General Fund: Schedule of Revenues – Budget and Actual ...... 93 Schedule of Expenditures – Budget and Actual ...... 95
General Capital Improvement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 96
Loan Repayment Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 97
Nonmajor Governmental Funds: Combining Balance Sheet ...... 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...... 99
Nonmajor Special Revenue Funds: ...... 100 Combining Balance Sheet ...... 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...... 106
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TABLE OF CONTENTS
Page FINANCIAL SECTION (continued)
Traffic and Bicycle Safety Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 110
Mobile Home Park Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 111
Community Development Block Grant Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 112
State & County Gasoline Tax Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 113
Police Narcotics Confiscation Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 114
Local Transit Assistance Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 115
Mobile Source Air Pollution Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 116
Public Safety Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 117
Community Facilities District 90-1 Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 118
Downtown Business Improvement District Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 119
Maintenance Assessment District Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 120
Affordable Housing Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 121
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TABLE OF CONTENTS
Page FINANCIAL SECTION (continued)
PEG Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 122
Downtown Parking In-Lieu Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 123
Miscellaneous Grants Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 124
EIFD Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 125
Capital Projects Funds: ...... 126
Combining Balance Sheet ...... 127
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...... 129
ROW Management Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 131 I/S Technology Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 132
Underground Utilities Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 133
Park Development Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 134
Storm Drainage District Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 135
Youth Sports Capital Improvement Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ...... 136
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TABLE OF CONTENTS
Page FINANCIAL SECTION (continued)
Internal Service Funds: ...... 137
Combining Statement of Fund Net Position ...... 138
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ...... 139
Combining Statement of Cash Flows ...... 140
Custodial Funds: ...... 144
Combining Balance Sheet ...... 145
Combining Statement of Changes in Assets and Liabilities ...... 146
STATISTICAL SECTION
Net Position by Component ...... 148
Changes in Net Position ...... 150
Governmental Activities Tax Revenues by Source ...... 154
Fund Balances of Governmental Funds ...... 155
Changes in Fund Balances of Governmental Funds ...... 157
General Governmental Tax Revenues by Source ...... 159
Assessed Value of Taxable Property ...... 160
Direct and Overlapping Property Tax Rates ...... 161
Principal Property Taxpayers ...... 162
Property Tax Levies and Collections ...... 163
Taxable Sales by Category ...... 165
Ratios of Outstanding Debt by Type ...... 167
Ratios of General Bonded Debt Outstanding ...... 169
Direct and Overlapping Debt ...... 170
Legal Debt Margin Information ...... 171
Pledged-Revenue Coverage ...... 173
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TABLE OF CONTENTS
Page STATISTICAL SECTION (continued)
Demographic and Economic Statistics ...... 174
Principal Employers ...... 175
Full-time City Employees by Function ...... 176
Operating Indicators by Function ...... 178
Capital Asset Statistics by Function ...... 180
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Introductory Section
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December 26, 2019
To the Mayor, Members of the City Council and Citizens of the City of La Verne:
It is the policy of the City of La Verne to annually produce a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial statements of the City of La Verne for the fiscal year ended June 30, 2019.
This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City's financial statements have been audited by ROGERS, ANDERSON, MALODY & SCOTT, LLP, a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2019, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended June 30, 2019, were fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the effectiveness of the City's internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report.
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The City of La Verne is a general law city of the State of California and incorporated on August 20, 1906. It is located in the northeastern section of Los Angeles County and is approximately 28 miles east of the City of Los Angeles. The City currently occupies a land area of 9.1 square miles and serves a population of 33,201. The City is empowered to levy a property tax on both real and personal properties located with its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, when deemed appropriate by the City Council.
The City operates under the council-manager form of government. Policymaking and legislative authority are vested in a City Council consisting of the mayor and four other council members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, Police Chief and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four-year staggered terms, with two council members elected every two years. The mayor is elected to serve a two-year term.
The City provides a full range of services, including police and fire protection; the construction and maintenance of highways, streets and other infrastructure; and recreational activities and cultural events. The City is financially accountable for a successor agency and financing authority, both of which are reported separately within the City's financial statements. Additional information regarding all three of these legally separate entities can be found in the notes to the financial statements.
The annual budget serves as the foundation for the City's financial planning and control. Departments of the City are required to submit requests for appropriation to the City Manager by April of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review in June. The council holds public hearings on the proposed budget and generally adopts a final budget by June 30, the close of the City's fiscal year. The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., police). The City Manager may make transfers of appropriations within and between departments. City Council approval is required for budget revisions that increase total City appropriations. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and major special revenue fund, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds that have appropriated annual budgets, other than the general fund and major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.
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Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.
Local economy. The City currently enjoys a favorable economic environment and local indicators point to continued stability. The City is situated in the rapidly developing east San Gabriel Valley area that contains the cities of Pomona, Glendora, Claremont and San Dimas. La Verne’s population is well educated, affluent and articulate. The concepts of neighborhood and town are alive and well in the City. A large number of quality private and public schools are located in the City including the prestigious University of La Verne. It is a town of extensive parks and recreational, programs, a popular community center, library, churches and retirement centers.
The region. La Verne’s location has been an asset since its founding over 100 years ago along the busy Santa Fe Railroad Line. Less than 30 minutes from Los Angeles and Orange Counties’ civic centers, La Verne is served by the 10, 210 and 57 freeways. Major trucking centers and a commercial airport in Ontario are less than 20 minutes away. Brackett Airport, located in La Verne, provides private charter, corporate and recreational air service. The 210 freeway coupled with Foothill Boulevard (California Route 66) are the main east/west thoroughfares. Thousands of commuters travel daily through the City, providing extensive exposure for continued or expanded retail sales and other property development.
The City's Foothill Boulevard commercial corridor continues to maintain its current 94 percent occupancy with a variety of stores, specialty shops and other retail businesses. Meanwhile, there continues to be a positive upwards trend in residential property values.
Long-term financial planning. In April of 1987, the City Council discussed the concept of developing long-range financial and management plans and strategies. This discussion occurred as a result of a number of financial crises that impacted the City in the mid-eighties. The City Council was interested in a proactive rather than a reactive solution or approach to management issues that the City had to address. After agreeing upon a formal process, the City Council and Department Heads met in December of 1988 to develop the City’s first Strategic Plan. Since then, approximately every two years the Council and Management team have met to review, evaluate and revise the Strategic Plan document. The plan includes analysis of the City’s strengths, weaknesses, opportunities and threats (SWOT) that could affect our future operating environment. In addition, the plan utilizes the City’s mission statement, strategic values and established priorities to prioritize various departmental goals and objectives.
Cash management policies and practices. Cash temporarily idle during the year was invested in accordance with the City’s approved Investment Policy. The policy affords a broad spectrum of investment opportunities, as long as the investment is deemed prudent and permissible under currently effective legislation of the State of California and other imposed restrictions. Criteria for selecting investments and the order of priority are: safety, liquidity and yield. The cash management system of the City is designed to accurately monitor and forecast expenditures and revenues, thus insuring the investment of monies to fullest extent possible. Attempts are made to obtain the highest yields available as long as investments meet the criteria required for safety and liquidity. The maturities of the investments range from 1 day to 3
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years, with an average maturity of approximately 13 months. The average yield on maturing investments at year end was approximately 2.07 percent.
Risk management. The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, error and omissions; injuries to employees and natural disasters. The City participates in the California Joint Powers Insurance Authority (CJPIA). The purpose of this organization is to provide a form of liability insurance whereby the risk of general liability loss is pooled among the member cities. The City pays an annual deposit calculated based on prior claims experience. The City has a self-retention for liability claims of $250,000, losses exceeding the self-retention limit up to $ 2 million per claim are recovered from deposits paid by member cities. Individual claims in excess of $ 2 million up to a maximum of $50 million are covered by private insurance carriers. Additional information on the City's risk management activity can be found in the notes to the financial statements.
Pension and other post-employment benefits. The City contributes to the California Public Employees Retirement System, an agent multiple-employer public employee defined benefit pension plan for its employees. Each year, an independent actuary engaged by the pension plan calculates the amount of the annual contribution that the City must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. As a matter of policy, the City fully funds each year's annual required contribution to the pension plan as determined by this funding policy. The unfunded actuarial liability associated with employee services rendered to date is being systematically funded over a set number of years for safety and miscellaneous employees as part of the annual required contribution calculated by the actuary.
The City also provides postretirement health care benefits for certain retired employees. These benefits are financed from an actuarially calculated annual contribution by the City into an irrevocable trust. The trust is dedicated solely to providing benefits to retirees and their beneficiaries in accordance with the terms of the plan. Additional information regarding the City's pension arrangements and post-employment benefits can be found in the notes to the financial statements.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Division. In particular I would like to thank Christy Lopez, Senior Management Analyst for all of her efforts and professional judgement. In addition, I wish to express my appreciation to all City staff who assisted and contributed to the preparation of this report. I would also like to thank the Mayor, members of the City Council and the City Manager for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances.
Respectfully submitted,
______Nathan Statham Finance Manager
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CITY OF LA VERNE, CALIFORNIA
List of Principal Officials
June 30, 2018
CITY COUNCIL
Don Kendrick Mayor
Charlie A. Rosales Robin Carder Mayor Pro Tem Council Member
Muir Davis Tim Hepburn Council Member Council Member
ADMINISTRATION AND DEPARTMENT DIRECTORS
City Manager Robert Russi
Assistant City Manager/Public Works Director Daniel W. Keesey
City Attorney Robert L. Kress
Assistant City Clerk Lupe Estrella
City Engineer Dominic C. Milano
Community Development Director Eric Scherer
Finance Manager Nathan Statham
Fire Chief (Interim) Devon Harden
Information Systems Manager William Elftman Jr.
City Treasurer Ronald Clark
Community Services Director William Aguirre
Police Chief Nicolas Paz Jr.
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City of La Verne Organization Chart
Citizens
City Attorney City Council City Clerk
City Manager/ Administrative City Engineer Functions
Community Community Development Fire Services Department
Police Public Works
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Financial Section
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of City Council City of La Verne, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Verne, California (City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. -1-
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Verne, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
Change in Accounting Principle
As discussed in Note 1 of the financial statements, the City adopted provisions of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities and Governmental Accounting Standards Board Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. Our opinion is not modified with respect to this matter.
The application of the provisions of the above GASB Statements did not require a restatement of beginning net position for the year ended June 30, 2019.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, the schedule of proportionate share of net pension liability and related ratios as of the measurement date, the schedule of plan contributions, the schedule of changes in the net OPEB liability and related ratios, and the schedule of OPEB contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of La Verne’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, nonmajor fund budgetary comparison schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and nonmajor fund budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and nonmajor fund budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
Prior-Year Comparative Information
We have previously audited the City's 2018 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated January 4, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2018, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 26, 2019 on our consideration of City of La Verne’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of La Verne’s internal control over financial reporting and compliance.
San Bernardino, California December 26, 2019
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of La Verne ("City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2019. Please read it in conjunction with the accompanying transmittal letter at the front of this report, and the basic financial statements, which follow this section. This discussion and analysis provides numerous comparisons with the previous fiscal year.
Financial Highlights
• The City’s assets and deferred inflows of resources exceeded liabilities and deferred outflows of resources at June 30, 2019 by $89.9 million (net position).
• The City's total net position decreased by $180 during the past year.
• As of the close of the 2018-19 fiscal year, the City's governmental funds reported combined ending fund balances of $40.4 million, a net increase of $4.3 million in comparison with the prior fiscal year. Approximately 34.9% of this amount ($14.1 million) is available for spending at the government's discretion (committed, assigned and unassigned fund balances).
• As of June 30, 2019, the total fund balance of the City's General Fund was $11.0 million. This amount includes $5.2 million set aside and committed by the City Council for contingencies based upon 15% of next year’s operating budget.
• The City's total long-term liabilities increased by $52.5 million during the fiscal year ending June 30, 2019, to a level of $117.9 million. This increase is attributable to the issuance of the City’s 2018 Pension Obligation Bonds. The bond proceeds were used to reduce the City’s pension liability, but due to differences in measurement periods between the pension liability calculation and the financial statements, the reduction in the net pension liability will not be reflected in the City’s statement of net position until next fiscal year. The City does reflect a deferred outflow of $53.7 million that will be applied to the net pension liability. There was no change to the City's issuer credit ratings of AA+ from Standard and Poor’s.
Overview of the Financial Statements
This discussion and analysis is an introduction to the City's basic financial statements, which consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also consists of supplementary information in addition to the basic financial statements.
Government-wide financial statements. These statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private sector business. There are two government-wide financial statements: the Statement of Net Position and the Statement of Activities. They present information for the government as a whole and present a longer-term view of the City's finances. These two statements help to answer the question: "Is the City as a whole better off or worse off as a result of this year's activities?"
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The Statement of Net Position presents information on all of the City's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, the difference between them is reported as net position. In time, increases or decreases in net position may serve as a useful indicator of whether the financial standing of the City is improving or deteriorating.
The Statement of Activities presents information on how the City's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Therefore, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (for example, uncollected taxes and earned but unused employee leaves).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include police services, fire services, public works, most general government activities, parks and community services and community development. The business-type activities of the City include water and sewer services.
The government-wide financial statements include not only the City of La Verne itself (known as the primary government), but also three other legally separate entities: the City's Successor (formerly Redevelopment) Agency (the “Agency”), whose purpose was to prepare and carry out plans to revitalize, rehabilitate and redevelop blighted areas within the territorial limits of the City of La Verne, the La Verne Housing Authority (the “Housing Authority”), established to enhance the ability of the City and Agency to use low and moderate income housing funds for housing projects, and the La Verne Financing Authority (the "Financing Authority"), a joint powers authority formed by the City and the Housing Authority to act as a conduit for debt financing. The City is financially accountable for these legally separate entities. The Agency and Authorities function for all practical purposes as departments of the City, and therefore, have been included in these financial statements as an integral part of the primary government.
The government-wide financial statements can be found on pages 16 - 17 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 26 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The General Fund, Housing Successor, Debt Service and the General Capital Improvement Fund are considered to be the City's four major funds. Data from the other 22 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City uses enterprise funds to account for its water and sewer operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City has two internal service funds. One is used to account for operating and replacement costs associated with City vehicles. The other is used to account for the risk management activities of the City. Because these activities primarily benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.
The basic proprietary fund financial statements can be found on pages 25 - 34 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government- wide financial statements because the resources of these funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one private-purpose trust fund and two custodial funds, which are each a type of fiduciary fund. The private-purpose trust fund is used to account for the activities of the La Verne Successor Agency. The custodial funds account for assets held by the City as an agent for L.A. Impact, and other Special Deposits.
The basic fiduciary fund financial statements can be found on pages 35 -36 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 37 - 85 of this report.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning budgetary comparisons for the general fund and major special revenue funds. The required supplementary information also contains comparison and additional detail information for the City’s other post- employment benefit plan providing medical benefits for retired City employees and the City’s pension plans. Required supplementary information can be found on pages 86 - 92 of this report.
The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 98 - 109 of this report.
Government-wide Financial Analysis – Net Position
City of La Verne Table 1 Net Position For the Year Ended June 30, 2019 and 2018 (in millions)
Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018 Assets Current and other non-current assets$ 45.3 $ 40.9 $ 35.0 $ 32.2 80.3$ $ 73.1 Capital assets 51.7 52.1 20.2 21.4 71.9 73.5 Total assets 97.0 93.0 55.2 53.6 152.2 146.6
Deferred outflows of resources 54.0 12.5 6.8 1.7 60.8 14.2
Liabilities Long-term liabilities outstanding 104.6 57.1 13.3 8.3 117.9 65.4 Other liabilities 2.8 3.3 0.9 1.2 3.7 4.5 Total liabilities 107.4 60.4 14.2 9.5 121.6 69.9
Deferred inflows of resources 1.2 0.8 0.2 0.2 1.4 1.0
Net Position Net investment in capital assets 47.2 47.2 32.2 33.4 79.4 80.6 Restricted 26.3 21.4 - - 26.3 21.4 Unrestricted (Deficit) (31.1) (24.3) 15.4 12.2 (15.7) (12.1) Total net position $ 42.4 $ 44.3 $ 47.6 $ 45.6 90.0$ $ 89.9
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred inflows of resources exceeded liabilities and deferred outflows of resources at June 30, 2019 by $90.0 million. This reflects a decrease of $37.2 million compared to the balance of net position ten years ago.
The largest portion of the City's net position, $79.4 million (88%), is reflected in its investment in capital assets (e.g., land, street infrastructure, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt will be provided from future revenues and the remaining (12%) of the City’s net position, since the capital assets themselves cannot be used to liquidate these liabilities.
The remaining portion of the City’s net position, $10.6 million (12%), represents resources that are subject to external restrictions on how they may be used.
Net Position represents the most simple test of financial health for the City, indicating the excess (or deficit) of assets and deferred outflows of resources over liabilities and deferred inflows of resources. The Net Position for the City as a whole increased $0.1 million from $89.9 million at June 30, 2018 to $90.0 million at June 30, 2019. This was a 0.1% increase in Total Net Position.
The overall increase in Total Assets was $5.6 million. The Governmental activities total Assets increased $4.0 million. This increase was largely due to increased cash and investments, the City’s investment in a section 115 trust to fund future pension obligations and increases in capital assets. The Business-Type activities increased by $1.6 million with higher cash and investment balances from the Governmental activities repayment of the Water Fund advance being offset by decreases in capital assets.
The overall increase in Total Liabilities was $51.8 million which is attributable to the issuance of City Pension Obligation Bonds issued to pay off pension unfunded accrued liabilities. Note that the net pension liability is calculated on a different measurement period than the City’s fiscal year resulting in the reporting of both the pension unfunded accrued liability balances and the new 2018 Pension Obligation Bond issue. The bond proceeds that were applied to the unfunded accrued liabilities are shown as deferred inflows of resources.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Government-wide Financial Analysis – Changes in Net Position
City of La Verne Table 2 Changes in Net Position For the Year Ended June 30, 2019 and 2018 (in millions)
Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018 Revenues Program revenues: Charges for services$ 11.2 12.8$ $ 13.2 $ 14.0 24.4$ 26.8$ Operating contributions and grants 4.5 0.8 - - 4.5 0.8 Capital grants and contributions 4.9 1.8 - - 4.9 1.8 General revenues: Taxes: Property taxes 8.7 8.0 - - 8.7 8.0 in lieu of vehicle license fee 3.5 3.3 3.5 3.3 Sales Taxes 4.7 4.4 - - 4.7 4.4 Utility & other taxes 6.5 6.4 - - 6.5 6.4 Special assessments 1.9 1.9 - - 1.9 1.9 Investment earnings 1.7 0.5 - - 1.7 0.5 Other 0.3 0.3 0.8 (0.1) 1.1 0.2 Total revenues 47.9 40.2 14.0 13.9 61.9 54.1 Expenses General Government 3.6 2.8 - - 3.6 2.8 Public Safety 31.6 24.7 - - 31.6 24.7 Community Development 3.6 3.7 - - 3.6 3.7 Public Works 6.9 9.8 - - 6.9 9.8 Community Services 2.8 3.6 - - 2.8 3.6 Water - - 10.2 11.7 10.2 11.7 Sewer - - 1.4 1.5 1.4 1.5 Interest on long-term debt 1.8 0.4 - - 1.8 0.4 Total expenses 50.3 45.0 11.6 13.2 61.9 58.2
Excess (deficiency) before transfers (2.4) (4.8) 2.4 0.7 - (4.1)
Transfers 0.5 1.1 (0.5) (1.1) - -
Change in net position (1.9) (3.7) 1.9 (0.4) - (4.1)
Net position - beginning of year 44.3 48.0 45.6 46.0 89.9 94.0 Net position - end of year $ 42.4 44.3$ $ 47.5 $ 45.6 89.9$ 89.9$
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City’s total revenues were $61.9 million, while the total cost of all programs and services was $61.9 million. Charges for services was the City’s largest revenue source providing $24.4 million (39% of total revenues). Property tax revenue was the second largest revenue source providing $8.7 million (14% of total revenues). Utility and other tax revenue was the third largest revenue source at $6.5 million (11% of total revenues). Sales taxes totaling $4.7 million was the fourth largest revenue source followed by the motor vehicle in-lieu subvention from the State of California at $3.5 million.
Governmental activities. The governmental activities total revenue was $47.9 million. The cost of governmental activities Revenue Sources ‐ Governmental exceeded related program Activities revenues by $29.7 million, Investment meaning 62% of the cost to provide services had to be Special earnings financed from taxes and other Assessments 3% Other general revenues of the City. Motor 5% vehicle in 0% lieu Charges for Public safety expenses of 8% services $31.6 million comprised the 32% largest component of Utility & government activities in terms other taxes of cost (63%) this past year. 15% This was an increase of $6.8 million over prior year primarily Sales Taxes Operating due to increases in personnel 11% contributions costs and capital expenditures. and grants Capital Charges for services and 2% Property grants and operating and capital grants taxes contributions and contributions covered 22% 20% 4% ($7.0 million) of the cost of these activities.
Community development, cost $3.6 million, 7% of the total cost of governmental activities, with 39% ($1.6 million) being paid from program revenues.
Public works expense of $6.9 million was the second largest governmental activity (14% of the total cost of governmental activities). This was a decrease of $2.9 million over prior year, primarily due to capital and maintenance expenditures. Charges for services, operating and capital grants and contributions offset 72% ($6.7 million) of the cost of providing these services.
General government expenses of $3.6 million reflecting 7% was the second smallest component of the total cost of governmental activities. This was an increase of $0.8 million, primarily from increases in personnel and other operating costs. Charges for services and operating grants and contributions helped to offset 62% ($2.3 million) of the cost of these activities.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Community services cost $2.8 million this past year (6% of the Expenses and Program Revenues ‐ total), with all of their costs Governmental Activites being financed from program 30 revenues. 25
Interest on long-term debt, at 20 $1.8 million, comprised 3% of 15 the total cost of governmental 10 activities. 5
Business-type activities. The 0 Net position for Business-type activities of the City increased by $1.9 million for the current year end, compared to a decrease of $0.3 million during the prior fiscal year. The Exp Rev combined cost of the City’s business-type activities (water and sewer funds) was financed from program revenues. Expense by ‐ Governmental Activity Interest on The larger of the two business- long‐term Community type activities of the City was debt Services General for water services, comprising Public 4% 5% Government 88% of the total operating cost Works 9% of business-type activities 14% during the past year. All of the water service activities for this Community past year were financed from Development charges for services. Sewer 7% services accounted for the remaining 12% of the total cost Public of business-type activities. All Safety of its costs were also provided 63% by service charges.
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City of La Verne's financing requirements. In particular, assigned fund balances may serve as a useful measure of a government's resources available for spending at the end of a fiscal year.
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As of June 30, 2019, governmental funds reported combined ending fund balances of $40.4 million, a net increase of $4.3 million in comparison with the prior year. Approximately 22% of this total amount ($8.8 million) constitutes assigned fund balances, which is available for spending at the City's discretion. The other fund balance categories reflect the nature and extent of outside constraints placed upon the City as well as those imposed by the City Council. These other fund balance classifications and percentage amounts listed in order of their relative strength of spending constraints are: 1) Restricted 65% ($26.2 million), 2) Committed 13% ($5.3 million), 3) Assigned 22% ($8.8 million), and no amounts Unassigned.
The General Fund is the chief operating fund of the City. As of June 30, 2019, the assigned fund balance of the General Fund was $4.9 million, while the total fund balance was $11.0 million. As a measure of the General Fund's liquidity, it may be useful to compare both assigned fund balance and total fund balance to total fund operating expenditures. Assigned fund balance represented 14% of total General Fund operating expenditures, while total fund balance represented 32% of that same amount. As noted earlier, the General Fund is the chief operating fund of the City. Unexpected emergencies, adverse state budget impacts, economic and natural disasters can occur with little warning. Accordingly, the City Council has adopted an emergency contingency plan for purposes of dealing with a portion of these unknowns. The City's policy is to maintain a minimum of 15% of the General Fund operating budget within the committed fund balance.
The total fund balance of the City's General Fund increased by $1.1 million during the year ended June 30, 2019. Key factors and components that led to this change are as follows:
• General Fund expenditures were over revenues by $3.5 million this year compared to being over by $2.2 million in the prior fiscal year. Other financing sources (uses) increased by $1.6 million. Public safety costs increased by $1.4 million due to increases in budgeted operational costs, transfers into the General Fund increased from funds received for repayment of the Water Fund Advance. • General Fund expenditures increased by 6% ($2.1 million) with public safety increasing its operating costs by 7% ($1.4 million), community development operating costs increased by 18% ($0.3 million), general government activity increased by 13% ($0.3 million). The increases were primarily due to increases in personnel related costs. • General Fund revenues increased by 3% ($0.8 million) with property taxes increasing by 9% ($0.8 million) due to increased assessment values. Other tax revenues increased 3% ($0.3 million). Charges for services decreased by 5% ($0.4 million) primarily due to decreases in refuse collection fees and wild land fire assignments.
The City has three other major funds - the Housing Successor Fund, General Capital Improvements Fund and Debt Service Fund. The Housing Successor Fund ended the year with a total fund balance of $3.1 million. During fiscal year 2018-19, the Housing Successor Fund did not have any operational activity. The General Capital Improvement Fund ended the year with a total fund balance of $1.6 million and the Debt Service Fund ended the year with no fund balance.
-12- 106 February 3, 2020, City Council Meeting Page No. 99
MANAGEMENT’S DISCUSSION AND ANALYSIS
Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the combined proprietary funds (Water and Sewer Enterprise Funds) at the end of fiscal year 2018- 19 was $15.4 million. The total change in unrestricted net position for these Enterprise Funds for the year resulted in an increase of $1.9 million. This increase was largely due to an overall decrease in operating expenses of $2.0 including a decrease in purchased water expenses of $0.5 million.
General Fund Budgetary Highlights
The differences between the original budget and the final amended budget for expenditures was a $1.0 million increase in appropriations, due primarily to additional Fire Department overtime costs from USFS assignments, additional personnel costs for vacation payouts due to employee retirements and increases in labor costs along with required increases in retiree medical benefit contributions. Actual expenditures were less than the final budget by $0.1 million.
Actual revenues ended the year $0.6 million higher than budget. Total Property tax revenues were more than budget by $0.5 million. The local economy remained fairly strong compared with other regional parts within the State of California. Negative variances occurred for charges for services ($0.2 million).
Capital Assets and Depreciation
City of La Verne Table 3 Capital Assets As of June 30, 2019 and 2018 (net of accumulated depreciation) (in millions)
Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018
Land $ 12.8 $ 11.8 -$ $ - 12.8$ $ 11.8 Rights of way 9.6 9.6 - - 9.6 9.6 Construction in progress 0.1 - - - 0.1 - Buildings and improvements 10.9 11.4 - - 10.9 11.4 Automotive equipment 3.9 4.0 - - 3.9 4.0 Machinery & equipment 3.0 2.7 - - 3.0 2.7 Office furniture & equipment 1.2 1.4 - - 1.2 1.4 Infrastructure - streets, bridges and signals 10.2 11.2 - - 10.2 11.2 Property, plant & equipment - - 20.2 21.4 20.2 21.4
Total $ 51.7 52.1$ $ 20.2 $ 21.4 71.9$ $ 73.5
-13- 107 February 3, 2020, City Council Meeting Page No. 100
MANAGEMENT’S DISCUSSION AND ANALYSIS
Capital Assets. The capital assets of the City are those assets that are used in the performance of the City’s functions, including land, buildings, and infrastructure. At June 30, 2019 the net capital assets of the Governmental activities totaled $51.7 million and the net capital assets of the Business-Type activities totaled $20.2 million for a grand total of $71.9 million (see table 3 above). Depreciation on capital assets is recognized in the Government- Wide financial statements. Total depreciation recognized for the year was $4.5 million.
Governmental Funds. Total capital asset additions for governmental activities were $3.7 million. This represented an increase in additions from the prior year ($0.7 million) of $3.0 million. The largest components of the capital asset increases was for land that was re-valued in the General Fund for the sale of the City’s surplus Amherst Property, the replacement of City radios from Motorola and the purchase of City street lights form So Cal Edison. The City disposed of several surplus vehicles ($0.3 million), the City also recorded the disposal of older model Motorola Radios that were replaced ($1.7 million). The older model radios were retained by the City but are no longer in use. Total deletions were $2.0 million with accumulated depreciation of $1.2 million for a net book value of $0.8 million.
Proprietary Funds. Total capital asset deletions for the water and sewer operation of the city were $0.3 million. Current year deletions were primarily due to re-valuation in the General Fund for the sale of the City’s surplus Amherst Property.
Additional information on Capital Assets can be found in Note 4 of the Notes to the Basic Financial Statements.
Long-Term Liabilities and Debt Administration
City of La Verne Table 4 Long-Term Liabilities As of June 30, 2019 and 2018 (in millions)
Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018
Revenue bonds$ 4.5 4.9$ -$ $ - $ 4.5 $ 4.9 Pension obligation bonds 47.7 - 5.1 - 52.8 - Compensated absences 2.0 2.0 0.2 0.2 2.2 2.2 Net Pension Liability * 45.7 45.4 5.8 5.9 51.5 51.3 Net OPEB Liability 4.8 4.8 2.2 2.2 7.0 7.0
Total 104.7$ $ 57.1 $ 13.3 8.3$ 118.0$ $ 65.4
* The City issued 2018 Pension Obligation Bonds to pay off the net pension liability. The bond proceeds were used to reduce the City’s pension liability, but due to differences in measurement periods between the pension liability calculation and the financial statements, the reduction in the net pension liability will not be reflected in the City’s statement of net position until next fiscal year. The City does reflect a deferred outflow of $59.7 million of which $53.7 million will be applied to the net pension liability.
-14- 108 February 3, 2020, City Council Meeting Page No. 101
MANAGEMENT’S DISCUSSION AND ANALYSIS
As of June 30, 2019, the City had total long-term liabilities outstanding of $117.9 million. The outstanding debt was in the form of general obligation pension obligation bonds, revenue bonds, compensated absences, and net pension and OPEB liabilities. The City's total long-term liabilities increased by $52.6 million during the fiscal year ending June 30, 2019 due to the issuance of pension obligation bonds.
The City maintained its credit ratings during fiscal year 2018-19. The City's issuer credit rating from Standard and Poor’s is AA+. The State Constitution limits the amount of general obligation debt a city may incur to 3.75% of its total assessed valuation, which for the City of La Verne, was $176.0 million at June 30, 2019.
Additional information on the City's long-term liabilities can be found in Notes 6, 7 and 8 to the Basic Financial Statements.
Economic Factors and Next Year's Budget, Tax Rates and Fee Levels
La Verne's local economy was fairly healthy in fiscal year 2018-19 given the overall business climate for the State. Property values are holding steady with an increase of 10% in collections for the City. Sales Tax revenues showed signs of growth increasing 5% over fiscal year 2017-18 levels. Business license taxes increased 8% over 2017-18 levels. The City’s revenue base remains well diversified between property tax, sales tax and other tax revenues as well as charges that are user fee related.
The unemployment rate for the City was 4.4% based on the annual average for calendar year 2018, which was slightly higher than the State unemployment rate of 4.1%. The national rate was also lower at 3.9%.
As evidence of a stable local real estate market, the median sales price for housing values in the City of La Verne increased by 4.6% from last year at $680,000. Total assessed valuation of property within the City as determined by the County Assessor increased by $383.3 million (8.9%) over 2017-18 levels. The City received a benefit from this increase and actual property tax revenue increased by 10% ($0.8 million).
Change in Accounting Pronouncement
During fiscal year 2018-19, the City implemented GASB Statement 84 which changed the guidelines for fiduciary funds and the nature of the transactions reported in fiduciary type funds. As a result of this change in pronouncement, significant amounts of revenues resulting from donations and contributions that were previously held in the City’s agency funds were moved to governmental funds. These revenues represent restricted revenues for specific purposes and are reflected in the fund balance of the respective governmental funds as such. The General Fund and the General Capital Improvement Fund recognized $0.8 and $1.7 million respectively in contribution revenues related to this change in pronouncement during fiscal 2018-19.
Requests for Information
This financial report is designed to provide a general overview of the City of La Verne’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Manager, City of La Verne, 3660 D Street, La Verne, California 91750, (909) 596-8752.
-15- 109 February 3, 2020, City Council Meeting Page No. 102
GOVERNMENT-WIDE FINANCIAL STATEMENTS
110 February 3, 2020, City Council Meeting Page No. 103
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111 February 3, 2020, City Council Meeting Page No. 104 City of La Verne Statement of Net Position June 30, 2019 (with comparative data for June 30, 2018)
Governmental Business-type Totals Activities Activities 2019 2018 Asse ts: Cash and investments (Note 2) $ 36,251,546 $ 18,875,269 $ 55,126,815 $ 48,747,675 Cash and investments with fiscal agents (Note 2) 3,430,949 - 3,430,949 3,387,180 Restricted cash (Note 2) 515,694 - 515,694 - Interest receivable 125,899 91,279 217,178 209,314 Accounts receivable 1,403,665 2,603,428 4,007,093 4,237,716 Taxes receivable 195,825 - 195,825 239,717 Special assessments receivable 87,482 - 87,482 99,330 Loans receivable 26,963 39,500 66,463 106,333 Rebate receivable 194,137 - 194,137 - Due from other governments 1,158,669 7,401 1,166,070 999,063 Due from Successor Agency (Note 5) 2,110,000 - 2,110,000 2,310,000 Other prepaid items 105,433 - 105,433 - Inventory of materials and supplies, at cost 143,297 - 143,297 178,097 Land held for resale 925,718 - 925,718 679,343 Internal balances (Note 3) (1,370,000) 1,370,000 - - Capital assets: Capital assets not being depreciated (Note 4) 22,522,197 1,773,228 24,295,425 23,426,973 Capital assets being depreciated, net of accumulated depreciation (Note 4) 29,173,177 18,434,115 47,607,292 50,064,736 Water rights - 11,976,728 11,976,728 11,976,728 Total assets 97,000,651 55,170,948 152,171,599 146,662,205
Deferred outflows of resources: Pension related (Note 7) 53,278,290 6,447,378 59,725,668 13,406,735 OPEB related (Note 8) 691,478 325,401 1,016,879 781,889 Total deferred outflows of resources 53,969,768 6,772,779 60,742,547 14,188,624
Liabilities: Accounts payable 1,613,363 794,840 2,408,203 3,080,210 Accrued expenses 623,937 49,767 673,704 505,668 Unpaid claims liability 178,724 - 178,724 - Accrued interest payable 108,629 - 108,629 118,417 Unearned revenue - - - 652,786 Deposits payable 285,759 99,807 385,566 106,943 Long-term liabilities: Compensated absences (Note 6) 1,963,617 199,227 2,162,844 2,208,727 Bonds due within one year (Note 6) 1,605,550 124,450 1,730,000 405,000 Bonds due beyond one year (Note 6) 50,588,252 4,946,748 55,535,000 4,495,000 Net pension liability (Note 7) 45,652,704 5,781,850 51,434,554 51,266,006 Net OPEB liability (Note 8) 4,765,834 2,242,745 7,008,579 7,011,361 Total liabilities 107,386,369 14,239,434 121,625,803 69,850,118
Deferred inflows of resources: Pension related (Note 7) 1,124,359 128,795 1,253,154 957,939 OPEB related (Note 8) 59,069 27,798 86,867 94,270 Total deferred inflows of resources 1,183,428 156,593 1,340,021 1,052,209
Net position: Net investment in capital assets 47,200,374 32,184,071 79,384,445 80,568,437 Restricted for: General government 627,017 - 627,017 - Public safety 7,557,638 - 7,557,638 5,008,180 Community development 8,154,845 - 8,154,845 8,405,339 Public works 7,361,598 - 7,361,598 5,680,160 Community services 2,577,230 - 2,577,230 2,265,643 Debt service - - - 31,887 Unrestricted (31,078,080) 15,363,629 (15,714,451) (12,011,144) Total net position $ 42,400,622 $ 47,547,700 $ 89,948,322 $ 89,948,502
The accompanying notes are an integral part of these financial statements. -16- 112 February 3, 2020, City Council Meeting Page No. 105 City of La Verne Statement of Activities For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Governmental activities: General government $ 3,641,163 $ 355,650 $ 918,767 $ 997,376 Public safety 31,559,738 3,541,634 3,434,259 - Community development 3,556,533 1,488,625 159,333 14,475 Public works 6,897,544 3,071,662 17,066 3,613,998 Community services 2,790,862 2,738,056 - 266,840 Interest and fiscal charges 1,878,336 - - -
Total governmental activities 50,324,176 11,195,627 4,529,425 4,892,689
Business-type activities: Water 10,186,539 11,351,736 - - Sewer 1,384,766 1,827,769 - -
Total business-type activities 11,571,305 13,179,505 - -
Total $ 61,895,481 $ 24,375,132 $ 4,529,425 $ 4,892,689
General revenues: Taxes: Property taxes Property taxes in lieu of vehicle license fees Sales taxes Utility and other taxes Special assessments Investment income Net increase (decrease) in the fair value of investments Other Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
The accompanying notes are an integral part of these financial statements. -17- 113 February 3, 2020, City Council Meeting Page No. 106
continued Net (Expense) Revenue and Changes in Net Position
Governmental Business-type Totals Activities Activities 2019 2018
$ (1,369,370) $ - $ (1,369,370) $ (2,070,538) (24,583,845) - (24,583,845) (20,276,230) (1,894,100) - (1,894,100) (1,036,090) (194,818) - (194,818) (5,376,881) 214,034 - 214,034 (389,765) (1,878,336) - (1,878,336) (359,782)
(29,706,435) - (29,706,435) (29,509,286)
- 1,165,197 1,165,197 677,777 - 443,003 443,003 124,510
- 1,608,200 1,608,200 802,287
(29,706,435) 1,608,200 (28,098,235) (28,706,999)
8,749,690 - 8,749,690 7,980,984 3,536,886 - 3,536,886 3,281,759 4,658,252 - 4,658,252 4,439,369 6,533,577 - 6,533,577 6,383,797 1,915,447 - 1,915,447 1,833,639 943,068 444,657 1,387,725 973,643 711,025 338,003 1,049,028 (451,337) 217,450 50,000 267,450 274,038 540,724 (540,724) - -
27,806,119 291,936 28,098,055 24,715,892
(1,900,316) 1,900,136 (180) (3,991,107)
44,300,938 45,647,564 89,948,502 93,939,609
$ 42,400,622 $ 47,547,700 $ 89,948,322 $ 89,948,502
The accompanying notes are an integral part of these financial statements. -18- 114 February 3, 2020, City Council Meeting Page No. 107 City of La Verne Balance Sheet Governmental Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Special Revenue Capital Projects Fund Fund Housing General Capital General Successor Improvement Asse ts Cash and investments $ 9,712,523 $ 323,762 $ 3,084,160 Cash and investments with fiscal agents - - - Restricted cash 515,694 - - Interest receivable 45,716 1,529 - Accounts receivable 1,326,293 - - Taxes receivable 195,825 - - Special assessments receivable - - - Loans receivable 26,963 - - Due from other funds 152,469 - - Due from other governments 883,236 - - Due from Successor Agency - 2,110,000 - Inventory of materials and supplies, at cost - - - Land held for resale - 679,343 -
Total assets $ 12,858,719 $ 3,114,634 $ 3,084,160
Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 935,779 $ - $ 161,629 Accrued expenses 590,445 - - Deposits payable 274,327 Due to other funds - - - Unearned revenue - - - Advances from other funds - - 1,370,000
Total liabilities 1,800,551 - 1,531,629
Deferred Inflows of Resources: Unavailable revenue 77,966 - -
Fund balances: Restricted 788,343 3,114,634 1,152,879 Committed 5,286,596 - - Assigned 4,866,125 - 399,652 Unassigned 39,138 - -
Total fund balances 10,980,202 3,114,634 1,552,531
Total liabilities, deferred inflows of resources and fund balances$ 12,858,719 $ 3,114,634 $ 3,084,160
The accompanying notes are an integral part of these financial statements. -19- 115 February 3, 2020, City Council Meeting Page No. 108
continued Debt Service Fund Nonmajor Loan Repayment Governmental Totals Fund Funds 2019 2018
$ - $ 21,445,712 $ 34,566,157 $ 31,814,922 - 3,430,949 3,430,949 3,387,180 - - 515,694 - - 78,654 125,899 137,301 - 76,872 1,403,165 1,568,941 - - 195,825 239,717 - 87,482 87,482 99,330 - - 26,963 27,333 - - 152,469 85,794 - 275,433 1,158,669 999,063 - - 2,110,000 2,310,000 - - - 34,322 - - 679,343 679,343
$ - $ 25,395,102 $ 44,452,615 $ 41,383,246
$ - $ 467,913 $ 1,565,321 $ 2,033,514 - 21,845 612,290 447,989 - 11,432 285,759 - - 152,469 152,469 85,794 - - - 652,786 - - 1,370,000 2,000,000
- 653,659 3,985,839 5,220,083
- 14,126 92,092 101,689
- 21,222,472 26,278,328 21,391,209 - - 5,286,596 4,951,921 - 3,543,983 8,809,760 9,718,344 - (39,138) - -
- 24,727,317 40,374,684 36,061,474
$ - $ 25,395,102 $ 44,452,615 $ 41,383,246
The accompanying notes are an integral part of these financial statements. -20- 116 February 3, 2020, City Council Meeting Page No. 109
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117 February 3, 2020, City Council Meeting Page No. 110 City of La Verne Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2019
Fund balances of governmental funds $ 40,374,684
Amounts reported for governmental activities in the statement of net position are different because:
Certain receivables in governmental activities are not current financial resources and, therefore, are not reported in the funds. Street lighting LED upgrades rebate receivable 194,137
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. Capital assets, net of depreciation 51,695,374 Adjustment for Internal Service Fund capital assets, net (2,294,058) Capital asset recharacterized as land held for resale 246,375
Long-term liabilities are not due and payable in the current period and, accordingly, are not reported as liabilities in the funds. All liabilities (both current and long-term) are reported in the Statement of Net Position. Net pension liability (45,652,704) Net OPEB liability (4,765,834) Revenue bonds payable (4,495,000) Pension obligation bonds (47,698,802) Compensated absences (1,963,617) Adjustment for Internal Service Fund compensated absences 51,890
Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the governmental funds. (108,629)
Deferred inflows and outflows of resources related to pensions and OPEB that have not been included in the government fund activity: Deferred outflows of resources - pension related 53,278,290 Deferred outflows of resources - OPEB related 691,478 Deferred inflows of resources - pension related (1,124,359) Deferred inflows of resources - OPEB related (59,069)
Revenues reported as unavailable revenue in the governmental funds are recognized in the Statement of Activities. Deferred inflows of resources - California's Office of Emergency Services 62,754 Deferred inflows of resources - City of Pomona 1,536 Deferred inflows of resources - L.A. County Sheriffs Woolsey Fire 13,676 Deferred inflows of resources - Tobacco law enforcement grant 14,126
Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The assets and liabilities of the internal service funds must be added to the Statementof Net Position. 3,938,374
Net position of governmental activities $ 42,400,622
The accompanying notes are an integral part of these financial statements. -21- 118 February 3, 2020, City Council Meeting Page No. 111 City of La Verne Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Special Revenue Capital Projects Fund Fund Housing General Capital General Successor Improvement Revenues: Property taxes $ 12,268,704 $ - $ - Other taxes 8,669,220 - - Licenses and permits 1,337,888 - - Intergovernmental 292,933 - - Charges for services 7,101,086 - 4,442 Fines and forfeitures 15,650 - - Special assessments - - - Investment income 195,161 6,212 - Net increase (decrease) in the fair value of investments 150,665 5,631 - Rents 268,363 - - Other 173,442 - - Donations and contributions 809,374 - 1,695,868 Total revenues 31,282,486 11,843 1,700,310 Expenditures: Current: General government 2,872,581 - - Public safety 21,433,652 - - Community development 2,055,162 - - Public works 6,783,507 - - Community services 1,630,562 - - Capital projects - - 3,446,338 Debt service: Principal retirement - - - Interest - - - Total expenditures 34,775,464 - 3,446,338 Excess (deficiency) of revenues over (under) expenditures (3,492,978) 11,843 (1,746,028) Other Financing Sources (Uses): Proceeds from issuance of debt - - - Transfers in 8,881,832 - 1,520,948 Transfers out (4,291,324) (15,000) - Total other financing sources (uses) 4,590,508 (15,000) 1,520,948
Net change in fund balances 1,097,530 (3,157) (225,080) Fund balances, beginning of year 9,882,672 3,117,791 1,777,611 Fund balances, end of year $ 10,980,202 $ 3,114,634 $ 1,552,531
The accompanying notes are an integral part of these financial statements. -22- 119 February 3, 2020, City Council Meeting Page No. 112
continued Debt Service Fund Nonmajor Loan Repayment Governmental Totals Fund Funds 2019 2018
$ - $ 21,623 $ 12,290,327 $ 11,262,743 - 4,258,989 12,928,209 11,717,821 - 18,465 1,356,353 2,044,675 - 413,411 706,344 988,524 - 479,564 7,585,092 8,590,064 - 3,516,344 3,531,994 428,585 - 1,922,726 1,922,726 1,833,640 - 741,695 943,068 759,025
- 308,354 464,650 (233,112) - 1,925,224 2,193,587 2,396,226 - 30,998 204,440 303,680 - 16,950 2,522,192 - - 13,654,343 46,648,982 40,091,871
3,285,701 - 6,158,282 2,545,181 33,218,652 1,184,032 55,836,336 21,475,100 2,875,602 1,539,636 6,470,400 3,465,266 3,668,337 26,822 10,478,666 6,836,253 1,201,229 1,414,064 4,245,855 2,887,362 - 1,696,297 5,142,635 3,073,482
1,351,332 405,000 1,756,332 375,000 1,547,555 340,569 1,888,124 368,844 47,148,408 6,606,420 91,976,630 41,026,488
(47,148,408) 7,047,923 (45,327,648) (934,617)
49,050,134 - 49,050,134 - 2,866,999 176,949 13,446,728 3,517,170 (4,800,612) (3,749,068) (12,856,004) (2,382,070) 47,116,521 (3,572,119) 49,640,858 1,135,100
(31,887) 3,475,804 4,313,210 200,483 31,887 21,251,513 36,061,474 35,860,991 $ - $ 24,727,317 $ 40,374,684 $ 36,061,474
The accompanying notes are an integral part of these financial statements. -23- 120 February 3, 2020, City Council Meeting Page No. 113
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121 February 3, 2020, City Council Meeting Page No. 114 City of La Verne Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2019
Change in fund balances of governmental funds $ 4,313,210
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 those assets is allocated over their estimated useful lives as depreciation expense. This is the amount bywhich depreciation expense and transfers of capital assets exceeded capital outlay in the current year. This activity is reconciled as follows: Cost of assets capitalized, less disposals at net book value (net of Internal Service Fund), adjusted by rebate receivable of $194,137 2,653,472 Depreciation expense (net of Internal Service Fund) (3,050,216)
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 an effect on net position. Principal payments on long-term debt 1,756,332 Proceeds from issuance of debt (49,050,134)
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Decrease in compensated absences payable 77,186 Decrease in accrued interest payable on long-term debt 9,788
Governmetal funds report revenues and expenditures primarily pertaining to long-term liabilities, which are not reported in the statement of activities. At the government- wide level, these activities are reported in the statement of net position.Thisisthe net expenditure reported in the governmental funds, which is not reported in the statement of activities. Pension related net adjustments 40,722,086 OPEB related net adjustments 166,720
Revenues reported as unavailable in the governmental funds are recognizedinthe Statement of Activities (9,597)
Capital contributions from the enterprise funds for the transfer of land to the governmental activities reported in the Statement of Activities are not measurable and available revenues in the governmental funds. 246,375
Internal service funds are used by management to charge the costs of certain activities, for equipment and risk management, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. 264,462
Change in net position of governmental activities $ (1,900,316)
The accompanying notes are an integral part of these financial statements. -24- 122 February 3, 2020, City Council Meeting Page No. 115 City of La Verne Statement of Fund Net Position Proprietary Funds June 30, 2019 (with comparative data for June 30, 2018)
Business Type Activities - Enterprise Funds Water Sewer Total Assets: Current assets: Cash and investments $ 12,495,047 $ 6,380,222 $ 18,875,269 Interest receivable 54,824 36,455 91,279 Accounts receivable 2,268,766 334,662 2,603,428 Due from other governments 2,131 5,270 7,401 Prepaid items - - - Inventory of material and supplies, at cost - - - Notes receivable 39,500 - 39,500 Advances to other funds - 1,370,000 1,370,000
Total current assets 14,860,268 8,126,609 22,986,877
Noncurrent assets: Capital assets: Capital assets not being depreciated 1,706,228 67,000 1,773,228 Capital assets being depreciated, net of accumulated depreciation 13,459,887 4,974,228 18,434,115 Investment in water rights 11,976,728 - 11,976,728
Total noncurrent assets 27,142,843 5,041,228 32,184,071
Total assets 42,003,111 13,167,837 55,170,948
Deferred Outflows of Resources: Pension related 4,641,296 1,806,082 6,447,378 OPEB related 233,882 91,519 325,401 Total deferred outflows of resources 4,875,178 1,897,601 6,772,779
The accompanying notes are an integral part of these financial statements. -25- 123 February 3, 2020, City Council Meeting Page No. 116
continued Governmental Activities Internal Totals Service Funds 2019 2018
$ 1,685,389 $ 20,560,658 $ 16,932,753 - 91,279 72,013 500 2,603,928 2,668,775 - 7,401 - 105,433 105,433 - 143,297 143,297 143,775 - 39,500 79,000 - 1,370,000 2,000,000
1,934,619 24,921,496 21,896,316
143,701 1,916,929 2,045,853
2,150,357 20,584,472 21,453,659 - 11,976,728 11,976,728
2,294,058 34,478,129 35,476,240
4,228,677 59,399,625 57,372,556
- 6,447,378 1,420,982 - 325,401 250,204 - 6,772,779 1,671,186
The accompanying notes are an integral part of these financial statements. -26- 124 February 3, 2020, City Council Meeting Page No. 117 City of La Verne Statement of Fund Net Position Proprietary Funds June 30, 2019 (with comparative data for June 30, 2018)
Business Type Activities - Enterprise Funds Water Sewer Total Liabilities: Current liabilities: Accounts payable $ 778,085 $ 16,755 $ 794,840 Accrued expenses 33,658 16,109 49,767 Unpaid claims liability - - - Compensated absences - current 51,318 29,611 80,929 Bonds payable - current 88,319 36,131 124,450
Total current liabilities 951,380 98,606 1,049,986
Long-term liabilities: Deposits payable 99,807 - 99,807 Compensated absences 76,095 42,203 118,298 Net pension liabilities 4,162,200 1,619,650 5,781,850 Net OPEB liabilities 1,611,973 630,772 2,242,745 Bonds payable 3,510,596 1,436,152 4,946,748
Total long-term liabilities 9,460,671 3,728,777 13,189,448
Total liabilities 10,412,051 3,827,383 14,239,434
Deferred Inflows of Resources: Pension related 92,716 36,079 128,795 OPEB related 19,980 7,818 27,798 Total inflows of resources 112,696 43,897 156,593
Net position: Net investment in capital assets 27,142,843 5,041,228 32,184,071 Unrestricted 9,210,699 6,152,930 15,363,629
Total net position $ 36,353,542 $ 11,194,158 $ 47,547,700
The accompanying notes are an integral part of these financial statements. -27- 125 February 3, 2020, City Council Meeting Page No. 118
continued Governmental Activities Internal Totals Service Funds 2019 2018
$ 48,042 $ 842,882 $ 1,046,696 11,647 61,414 57,679 178,724 178,724 - 16,933 97,862 188,712 - 124,450 -
255,346 1,305,332 1,293,087
- 99,807 106,943 34,957 153,255 31,102 - 5,781,850 5,877,095 - 2,242,745 2,243,635 - 4,946,748 -
34,957 13,224,405 8,258,775
290,303 14,529,737 9,551,862
- 128,795 140,238 - 27,798 30,166 - 156,593 170,404
2,294,058 34,478,129 35,476,240 1,644,316 17,007,945 13,845,236
$ 3,938,374 $ 51,486,074 $ 49,321,476
The accompanying notes are an integral part of these financial statements. -28- 126 February 3, 2020, City Council Meeting Page No. 119 City of La Verne Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Business Type Activities - Enterprise Funds Water Sewer Total Operating revenues: Charges for services $ 11,351,736 $ 1,827,769 $ 13,179,505 Risk premiums - - -
Total operating revenues 11,351,736 1,827,769 13,179,505
Operating expenses: Administration 872,784 663,645 1,536,429 Maintenance 120,971 404,023 524,994 Fuel - - - Production 6,606,661 - 6,606,661 Transmission and distribution 545,611 - 545,611 Customer service 677,017 - 677,017 Claims settlement - - - Depreciation 974,184 255,424 1,229,608
Total operating expenses 9,797,228 1,323,092 11,120,320
Operating income 1,554,508 504,677 2,059,185
Nonoperating revenues (expenses): Investment income 281,754 162,903 444,657 Rents 50,000 - 50,000 Interest expense (150,791) (61,674) (212,465) Net increase (decrease) in the fair value of investments 203,024 134,979 338,003 Gain (loss) on sale of capital assets (238,520) - (238,520) Other - - -
Total nonoperating revenues 145,467 236,208 381,675
Income before contributions and transfers 1,699,975 740,885 2,440,860
Transfers in 997,376 15,000 1,012,376 Transfers out (1,338,900) (214,200) (1,553,100) Total transfers (341,524) (199,200) (540,724)
Change in net position 1,358,451 541,685 1,900,136
Net position, beginning of year 34,995,091 10,652,473 45,647,564
Net position, end of year $ 36,353,542 $ 11,194,158 $ 47,547,700
The accompanying notes are an integral part of these financial statements. -29- 127 February 3, 2020, City Council Meeting Page No. 120
continued Governmental Activities Internal Totals Service Funds 2019 2018
$ 1,793,301 $ 14,972,806 $ 15,879,160 240,860 240,860 -
2,034,161 15,213,666 15,879,160
508,889 2,045,318 2,274,611 548,622 1,073,616 1,227,080 234,017 234,017 283,971 - 6,606,661 7,529,865 - 545,611 837,922 - 677,017 1,041,354 187,008 187,008 - 260,683 1,490,291 1,472,846
1,739,219 12,859,539 14,667,649
294,942 2,354,127 1,211,511
- 444,657 214,618 - 50,000 - - (212,465) -
- 338,003 (218,225) 19,520 (219,000) (26,272) - - (12,091)
19,520 401,195 (41,970)
314,462 2,755,322 1,169,541
50,000 1,062,376 20,000 (100,000) (1,653,100) (1,155,100) (50,000) (590,724) (1,135,100)
264,462 2,164,598 34,441
3,673,912 49,321,476 49,287,035
$ 3,938,374 $ 51,486,074 $ 49,321,476
The accompanying notes are an integral part of these financial statements. -30- 128 February 3, 2020, City Council Meeting Page No. 121 City of La Verne Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Business Type Activities - Enterprise Funds Water Sewer Total Cash flows from operating activities: Cash received from users $ 11,471,684 $ 1,765,767 $ 13,237,451 Cash payments to suppliers for goods and services (7,631,816) (384,958) (8,016,774) Cash payments to employees for services (1,480,286) (605,657) (2,085,943)
Net cash provided by operating activities 2,359,582 775,152 3,134,734
Cash flows from noncapital financing activities: Cash received from other funds 2,997,376 15,000 3,012,376 Principal payments on long-term debt (101,959) (41,711) (143,670) Interest payments on long-term debt (117,866) (48,218) (166,084) Payments for bond issuance cost on long-term debt (32,925) (13,456) (46,381) Cash paid to other funds (1,338,900) (1,584,200) (2,923,100)
Net cash provided by (used for) noncapital financing activities 1,405,726 (1,672,585) (266,859)
Cash flows from capital and related financing activities: Cash paid to purchase capital assets (270,945) - (270,945) Cash received from sale of capital assets 7,855 - 7,855
Net cash used for capital and related financing activities (263,090) - (263,090)
Cash flows from investing activities: Cash received from collection of notes receivable 39,500 - 39,500 Interest on investments 469,595 293,799 763,394 Lease income 50,000 - 50,000
Net cash provided by investing activities 559,095 293,799 852,894
Net increase (decrease) in cash and investments 4,061,313 (603,634) 3,457,679
Cash and investments, beginning of year 8,433,734 6,983,856 15,417,590
Cash and investments, end of year $ 12,495,047 $ 6,380,222 $ 18,875,269
The accompanying notes are an integral part of these financial statements. -31- 129 February 3, 2020, City Council Meeting Page No. 122
continued Governmental Activities Internal Totals Service Fund 2019 2018
$ 2,033,661 $ 15,271,112 $ 14,966,914 (775,226) (8,792,000) (10,787,371) (590,119) (2,676,062) (1,215,506)
668,316 3,803,050 2,964,037
50,000 3,062,376 520,000 - (143,670) - - (166,084) - - (46,381) - (100,000) (3,023,100) (1,155,100)
(50,000) (316,859) ( 635,100)
(490,437) (761,382) ( 198,868) 42,347 50,202 133,208
(448,090) (711,180) (65,660)
- 39,500 39,500 - 763,394 (11,440) - 50,000 -
- 852,894 28,060
170,226 3,627,905 2,291,337
1,515,163 16,932,753 14,641,416
$ 1,685,389 $ 20,560,658 $ 16,932,753
The accompanying notes are an integral part of these financial statements. -32- 130 February 3, 2020, City Council Meeting Page No. 123 City of La Verne Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Business Type Activities - Enterprise Funds Water Sewer Total Reconciliation of operating income to net cash provided by operating activities: Operating income $ 1,554,508 $ 504,677 $ 2,059,185 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 974,184 255,424 1,229,608 Other revenues - - - Prior period adjustment - change in accounting principle - - - (Increase) decrease in: Accounts receivable 122,079 (56,732) 65,347 Due from other governments (2,131) (5,270) (7,401) Prepaid items - - - Inventory of materials and supplies, at cost - - - Deferred outflows of resources - pension related 82,505 105,967 188,472 Deferred outflows of resources - OPEB related (54,048) (21,149) (75,197) Increase (decrease) in: Accounts payable (243,919) 14,831 (229,088) Accrued expenses 541 2,900 3,441 Unpaid claims liability - - - Deposits payable (7,136) - (7,136) Compensated absences 12,143 5,306 17,449 Net pension liabilities (68,564) (26,681) (95,245) Net OPEB liabilities (640) (250) (890) Deferred inflows of resources - pension related (8,238) (3,205) (11,443) Deferred inflows of resources - OPEB related (1,702) (666) (2,368)
Total adjustments 805,074 270,475 1,075,549
Net cash provided by operating activities $ 2,359,582 $ 775,152 $ 3,134,734
Noncash noncapital financing activities Issuance of pension obligation bonds reported as deferred outflows of resources due to measurement date of the net pension liability $ 3,700,874 $ 1,513,994 $ 5,214,868
The accompanying notes are an integral part of these financial statements. -33- 131 February 3, 2020, City Council Meeting Page No. 124
continued Governmental Activities Internal Totals Service Fund 2019 2018
$ 294,942 $ 2,354,127 $ 1,211,511
260,683 1,490,291 1,472,846 - - (61,389) - - (2,022,075)
(500) 64,847 ( 851,811) - (7,401) 954 (105,433) ( 105,433) 1,100 478 478 (8,645) - 188,472 ( 287,609) - (75,197) ( 250,204)
25,274 ( 203,814) 102,003 294 3,735 (12,972) 178,724 178,724 - - (7,136) (3,707) 13,854 31,303 ( 123,401) - (95,245) 1,618,207 - (890) 2,243,635 - (11,443) (94,572) - (2,368) 30,166
373,374 1,448,923 1,752,526
$ 668,316 $ 3,803,050 $ 2,964,037
$ - $ 5,214,868 $ -
The accompanying notes are an integral part of these financial statements. -34- 132 February 3, 2020, City Council Meeting Page No. 125 City of La Verne Statement of Fiduciary Net Position Fiduciary Funds June 30, 2019 (with comparative data for June 30, 2018)
Successor Agency to the Redevelopment Agency of the City of La Verne Private-purpose Trust Fund Custodial Funds 2019 2018 2019 2018 Assets: Cash and investments $ 414,874 $ 766,151 $ 9,662,081 $ 14,242,242 Interest receivable 1,070 567 68,386 51,397 Accounts receivable - - 1,263 4,608 Notes receivable 45,000 60,000 - - Due from other governments - - 398,470 458,795 Capital assets: Capital assets not being depreciated 79,736 79,736 - - Capital assets being depreciated, net of accumulated depreciation 3,000 3,000 - -
Total assets 543,680 909,454 $ 10,130,200 $ 14,757,042
Liabilities: Accounts payable 84 68 $ 170,482 $ 738,814 Accrued expenses 489 - - - Due to City of La Verne 2,110,000 2,310,000 - - Deposits payable - - 9,959,718 14,018,228 Long-term liabilities: Due within one year 12,624 381,595 - - Due beyond one year - 12,138 - -
Total liabilities 2,123,197 2,703,801 $ 10,130,200 $ 14,757,042
Net position (deficit): Net position (deficit) held for dissolution of redevelopment agency (1,579,517) (1,794,347)
Total net position (deficit) $ (1,579,517) $ (1,794,347)
The accompanying notes are an integral part of these financial statements. -35- 133 February 3, 2020, City Council Meeting Page No. 126 City of La Verne Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Successor Agency to the Redevelopment Agency of the City of La Verne Private-purpose Trust Fund 2019 2018
Additions: Property taxes 593,109 1,018,855 Investment Income 5,787 965 Net increase (decrease) in the fair value of investments 3,965 (3,169)
Total additions 602,861 1,016,651
Deductions: Administrative expenses 30,000 138,550 1996 Revenue bonds pledge payment 350,000 336,405 Interest expense 8,031 23,660 Loss from sale of property - 3,506
Total deductions 388,031 502,121
Change in net position 214,830 514,530
Net position (deficit), beginning of year (1,794,347) (2,308,877)
Net position (deficit), end of year $ (1,579,517) $ (1,794,347)
The accompanying notes are an integral part of these financial statements. -36- 134 February 3, 2020, City Council Meeting Page No. 127
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135 February 3, 2020, City Council Meeting Page No. 128
NOTES TO THE BASIC FINANCIAL STATEMENTS
136 February 3, 2020, City Council Meeting Page No. 129 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies of the City of La Verne, California (City):
(a) Description of Reporting Entity
As required by generally accepted accounting principles, these financial statements present the City of La Verne 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 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 upon the City (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 City of La Verne was incorporated in 1906 under the general laws of the State of California and enjoys all the rights and privileges pertaining to such "General Law" cities.
The La Verne Housing Authority was established on January 16, 1996. The Authority was created to maximize the ability of the City and former Redevelopment Agency to use low and moderate income housing funds for housing purposes. City Council serves as the governing body of the Authority. City management performs the same operational responsibilities for the Authority as it does for the rest of the City. Separate financial statements for the Housing Authority are not currently prepared.
The La Verne Financing Authority was established on January 16, 1996, under a joint powers agreement between the City of La Verne and the Housing Authority. The Financing Authority was established as a conduit for debt financing. City Council serves as the governing body of the Authority. City management performs the same operational responsibilities for the Authority as it does for the rest of the City. Debts issued through the La Verne Financing Authority are expected to be repaid with City resources. Accordingly, separate financial statements for the Financing Authority are not prepared.
The La Verne Housing Authority was included within the scope of the reporting entity of the City because its governing body is composed in its entirety of the council members of the City.
The La Verne Enhanced Infrastructure Financing District (EIFD) was established in October 2017, and is a blended component unit of the City because it is governed by a 5 member Board of Directors appointed by the City Council consisting of 3 elected and 2 public members.
-37- 137 February 3, 2020, City Council Meeting Page No. 130 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(b) Fund Accounting
The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accounting records of the City are organized on the basis of funds classified for reporting purposes as follows:
Governmental Fund Types:
General Fund
The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include the general operating expenses and capital improvement costs which are not paid through other funds.
Special Revenue Funds
The Special Revenue Funds are used to account for revenues derived from specific sources which are usually required by law or administrative regulation to be accounted for in a separate fund.
Debt Service Funds
The Debt Service Funds are used to account for resources that are accumulated for the payment of principal and interest of general long-term debt.
Capital Projects Funds
The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds).
The City reports the following major governmental funds:
General Fund – To account for all financial resources associated with the governments that are not legally required to be accounted for in another fund.
Housing Successor – To account for low and moderate income housing fund resources and activities.
General Capital Improvement Fund – To account for all capital projects not being accounted for in the City’s other capital projects funds.
Loan Repayment Fund – To account for the accumulation of resources and the payment of principal, interest, and other related cost associated with general long-term debt of the City.
-38- 138 February 3, 2020, City Council Meeting Page No. 131 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(b) Fund Accounting, (continued)
Proprietary Fund Types:
Enterprise Funds
The Enterprise Funds are used to account for the costs of providing water and sewer services to the general public and to account for the user charges by which these costs are recovered.
The City reports the following major enterprise funds:
Water Fund – To account for the operations of the City’s water utility.
Sewer Fund – To account for the operations of the City’s sewer utility.
Internal Service Fund
The City has two Internal Service Funds, which are used to account for operating and replacement costs associated with City vehicles, as well as risk management activities of the City.
The City reports the following two internal service funds:
Equipment Fund – To account for operating and replacement cost associated with City vehicles and equipment. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered.
Risk Management Fund – To account for risk management activities of the City including liability insurance premiums, claims settlement and City self-retention liability program activities. Costs are accumulated and charged to the user departments as insurance premiums.
Fiduciary Fund Types:
Successor Agency to the Redevelopment Agency of the City of La Verne (Private-Purpose Trust Fund) – To account for the activities of the former Redevelopment Agency (RDA), except for those accounted for in the Housing Authority Fund of the City. This fund’s primary purpose is to expedite the dissolution of the former RDA’s net position (except for low and moderate housing fund net position) in accordance with AB X1 26 and AB 1484.
Custodial Funds
The Custodial Funds are used to account for assets held by the City on behalf of private organizations, employees, bondholders and other individuals.
-39- 139 February 3, 2020, City Council Meeting Page No. 132 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(c) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the basic financial statements
The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles, and the City has adopted all pronouncements of the GASB.
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government 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). The City of La Verne has no discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental 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 expenditures 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 generally accepted accounting principles. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exception to the general rule is when elimination of the charges would distort the direct costs and program revenues reported for the various functions concerned.
-40- 140 February 3, 2020, City Council Meeting Page No. 133 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(c) Basis of Accounting and Measurement Focus, (continued)
Government-wide Financial Statements, (continued)
Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
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 major funds individually and nonmajor funds in the aggregate for governmental funds, as well as the enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified- accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a sixty-day availability period, except for grant related revenues that are presented using a six-month availability period.
-41- 141 February 3, 2020, City Council Meeting Page No. 134 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(c) Basis of Accounting and Measurement Focus, (continued)
Governmental Funds, (continued)
Revenue recognition is subject to the measurability and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they are imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.
Non-current portions of long-term receivables due to 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. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are reported as part of nonspendable, restricted, committed or assigned fund balance.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
-42- 142 February 3, 2020, City Council Meeting Page No. 135 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(c) Basis of Accounting and Measurement Focus, (continued)
Governmental Funds, (continued)
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable – amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. Restricted – amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation. Committed – amounts constrained to specific purposes by a government itself, using the highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint. Assigned – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. Unassigned – amounts that are for any purpose; positive amounts are reported only in a general fund.
The City Council establishes (and modifies or rescinds) fund balance commitments by passage of a resolution. Accordingly, the City Council has adopted a policy to maintain a minimum of 15% of the General Fund operating budget within the committed fund balance. The City Council has also designated the City Manager and Finance Manager as the City officials to determine, define, and make the necessary account or fund transfers for the amounts to those components of fund balance that are classified as “Assigned Fund Balance”.
When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is the City’s policy to consider committed amounts as being restricted first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.
-43- 143 February 3, 2020, City Council Meeting Page No. 136 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(c) Basis of Accounting and Measurement Focus, (continued)
Proprietary Funds
The City's Enterprise and Internal Service Funds are proprietary funds. In the fund financial statements, proprietary 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. In the fund financial statements, 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 funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses result from providing goods and services related to the fund's ongoing operations. The principal operating revenue of the City's proprietary funds is charges for services. Operating expenses include the cost of services provided, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary funds financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary funds financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as an expenditure.
(d) Interfund Transfers
Transfers are reported as other financing sources and uses of funds in the statement of revenues, expenditures and changes in fund balance.
(e) Advances to Other Funds
Long-term interfund advances are recorded as a receivable and as a nonspendable, restricted, committed or assigned fund balance by the advancing governmental fund and as a liability in the receiving fund.
-44- 144 February 3, 2020, City Council Meeting Page No. 137 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(f) Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for nonparticipating 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, maturity, 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, the City presents beginning balances, net increase (decrease) and ending balances of cash and investments, as the City internally pools its cash and investments together.
(g) Inventories
Inventories, consisting principally of supplies and petroleum products held by the Internal Service Fund are stated at lower of cost or market using the first-in first-out (FIFO) method.
(h) Loans Receivable
The portion of the fund balance reported as nonspendable, restricted, committed, or assigned for loans receivable represents amounts associated with non-current loans receivable which does not represent resources currently available for appropriation.
(i) Land Held for Resale
Land held for resale represents land that was acquired for resale in accordance with the objective of the Redevelopment Project. These costs will be charged to current year project expenditures when the related land is sold. Land held for resale is valued at the lower of cost or the estimated net realizable value. A portion of fund balance is reported as nonspendable, restricted, committed or assigned for land held for resale to indicate that a portion of fund balance is not available for future expenditures.
-45- 145 February 3, 2020, City Council Meeting Page No. 138 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(j) Capital Assets
General capital assets greater than $5,000, building and improvements greater than $10,000, and infrastructure including water and sewer distribution systems greater than $15,000 with a useful life of at least four years are capitalized and recorded at cost or at their estimated fair value of the asset at the time of acquisition where complete historical records have not been maintained. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Capital assets acquired under capital lease are capitalized at the net present value of the total lease payments. 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.
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds. The estimated useful lives of the assets are as follows:
Buildings and improvements 10 to 30 years Machinery and equipment 4 to 15 years Automotive equipment 4 to 10 years Office furniture and equipment 4 to 10 years Infrastructure: Pavement 10 to 30 years Traffic signals 50 years Bridges 100 years Water system and other improvements: Property, plant and equipment 10 to 50 years Sewer system and other improvements: Property, plant and equipment 10 to 50 years Sewer manholes 50 years Sewer mains 50 years
(k) Compensated Absences
Permanent general city employees earn from 10 to 20 vacation days a year, depending upon their length of employment, and 11 sick days a year. Employees generally can carry forward all of their earned vacation days and sick leave days for use in subsequent years, with the exception of mid management and department heads who have a cap depending upon their length of employment.
Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary-for all unused vacation leave, except for those employees that have not completed six months of continuous service. In addition, an employee is eligible for sick leave benefits upon termination only after 15 years of service. The employee is entitled to convert sick leave to vacation based on years of service with a cap of 500 hours.
-46- 146 February 3, 2020, City Council Meeting Page No. 139 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(k) Compensated Absences, (continued)
In accordance with general accepted accounting principles, a liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.
Under general accepted accounting principles, a liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This amount is estimated using the termination payment method, which is based upon the City's past experience of making terminating payments for sick leave. 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 employees.
If material, a proprietary fund liability is accrued for all earned but unused leave benefits relating to the operations of the proprietary funds. A current liability is accrued in the governmental funds for employee leave benefits expected to be paid from expendable, available financial resources as of the balance sheet date. Generally, this is interpreted to mean amounts expected to be paid within 60 days of the balance sheet date.
Compensated absences are primarily liquidated by the General Fund and Water Fund.
(l) Property Taxes
Property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10. Any unpaid amounts at the end of the fiscal year are recorded as taxes receivable in accordance with the City's accrued revenue policy as stated previously in note 1. The County of Los Angeles bills and collects the property taxes and subsequently remits the amount due to the City in installments during the year. The County is permitted by State Law (Article XIII A of the California Constitution) to levy taxes at one percent (1%) of full market value at the time of purchase and can increase the property's value no more than two percent (2%) per year. The City receives a share of this basic levy proportionate to what it received in the 1976 to 1978 period.
(m) Accounting Treatment for Self-insurance Activities
The City records a liability in the government-wide financial statements for litigation, judgments and claims (including losses incurred but not reported) when it is probable that an asset has been impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. Expenditures for claims and judgments are charged to governmental funds as they become payable from available expendable financial resources. The City has a self-retention amount of $250,000 for liability claims. A liability is estimated based on claims history and recorded in the Risk Management internal service fund.
-47- 147 February 3, 2020, City Council Meeting Page No. 140 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(n) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenditures during the reporting period. Accordingly, actual results could differ from those estimates.
(o) Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website at www.calpers.ca.gov.
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:
Valuation Date (VD) June 30, 2017 Measurement Date (MD) June 30, 2018 Measurement Period (MP) July 1, 2017 to June 30, 2018
(p) Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value.
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:
Valuation Date (VD) June 30, 2017 Measurement Date (MD) June 30, 2018 Measurement Period (MP) July 1, 2017 to June 30, 2018
-48- 148 February 3, 2020, City Council Meeting Page No. 141 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(1) Summary of Significant Accounting Policies, (continued)
(q) 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, deferred outflow of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City presents pension and OPEB related items that qualify for reporting in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflow of resources. This separate element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has pension and OPEB related items that qualifies for reporting in this category. The governmental funds report unavailable revenues that qualifies for reporting in this category in the governmental funds financial statements. These amounts are deferred and recognized as an inflow of resources in the period that the amounts materialize and become available.
(r) Implementation of New GASB Pronouncement
Governmental Accounting Standards Board Statement No. 84
The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary Activities. The primary objective of this Statement is to enhance the consistency and comparability of fiduciary activity reporting by state and local governments. This statement also is intended to improve the usefulness of fiduciary activity information primarily for assessing the accountability of governments in their roles as fiduciaries.
Governmental Accounting Standards Board Statement No. 88
In June of 2018, GASB issued Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. This Statement was issued to improve financial reporting by providing users of financial statements with essential information that was not previously provided. In addition, information about resources to liquidate debt and the risks associated with changes in term associated with debt will be disclosed. As a result, users will have better information to understand the effects of debt on a government’s future borrowing flows.
(s) Prior Year Data
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City's prior year financial statements, from which this selected financial data was derived. Certain prior year data has be reclassified from the previously issued financial statements to conform to the current year presentation, with no effect on net position or fund balance.
-49- 149 February 3, 2020, City Council Meeting Page No. 142 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(2) Cash and Investments
Cash and investments as of June 30, 2019, are classified in the accompanying financial statements as follows:
Statement of Net Position: Cash and investments$ 55,126,815 Cash and investments with fiscal agent 3,430,949 Restricted cash and investments* 515,694 Statement of Fiduciary Net Position: Cash and investments 10,076,955
Total cash and investments $ 69,150,413
Cash and investments as of June 30, 2019, consist of the following:
Cash on hand $ 223,950 Deposits with financial institutions 8,076,214 Investments 60,850,249
Total cash and investments $ 69,150,413
* Restricted cash and investments are funds invested in a Section 115 Trust exclusively for use in paying pension related Unfunded Accrued Liabilities (UAL). There is no restriction on when these funds can be used, provided they are used to pay pension related UALs. Funds will be used subject to the City’s Unfunded Accrued Liability policy which sets out basic guidelines for managing the City’s pension related UALs. These funds are invested in a trust arrangement through the Public Agency Retirement Services (PARS) and investments are managed through Highmark Capital Management (HCM) using a PARS/HCM Balanced Highmark Plus investment strategy.
-50- 150 February 3, 2020, City Council Meeting Page No. 143 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(2) Cash and Investments, (continued)
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 and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by the fiscal agent that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Authorized *Maximum *Maximum Investment Types Authorized by By Investment *Maximum Percentage of Investment in State Law Policy Maturity Portfolio One Issuer
U.S. Treasury Obligations Yes 5 years None None U.S. Agency Securities Yes 5 years None None Banker’s Acceptances Yes 180 days 40% 30% Commercial Paper Yes 270 days 25% 10% Negotiable Certificates of Yes 5 years 30% None Deposit Repurchase Agreements Yes 1 year None None Reverse Repurchase No 92 days 20% of base value None Agreements Medium-Term Notes Yes 5 years 30% None Mutual Funds Yes N/A 15% 10% Money Market Mutual Funds Yes N/A 20% 10% Mortgage Pass-Through Securities Yes 5 years 20% None County Pooled Investment Funds Yes N/A None None Local Agency Investment Funds (LAIF) Yes N/A None $65,000,000 JPA Pools (other investment pools) Yes N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.
-51- 151 February 3, 2020, City Council Meeting Page No. 144 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(2) Cash and Investments, (continued)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by the fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are generally authorized for investments held by the fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.
Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity Allowed One Issuer
U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker’s Acceptances 360 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Certificates of Deposit None None None Repurchase Agreements None None None Mortgage Pass-Through Securities None None None State Bonds or Notes None None None Municipal Bonds or Notes None None None
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 that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing, or coming close to maturity evenly over time, as necessary to provide the cash flow and liquidity needed for operations.
-52- 152 February 3, 2020, City Council Meeting Page No. 145 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(2) Cash and Investments, (continued)
Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
Remaining Maturity 1 Year 1 to 2 2 to 5 Investment Type Total or Less Years Years
U.S. Agency Securities $ 26,141,942 $ 13,951,800 $ 10,189,462 $ 2,000,680 Negotiable Certificates of Deposit 7,095,813 4,050,203 3,045,610 - Medium Term Corp. Notes 9,367,795 1,000,040 3,085,250 5,282,505 Local Agency Investment Fund 14,813,749 14,813,749 - - Held by fiscal agent: Money market funds 3,430,950 3,430,950 - -
Total $ 60,850,249 $ 37,246,742 $ 16,320,322 $ 7,283,185
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 (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Minim um Ratings as of Year End Legal Not Investment Type Total Rating AAA AA A BBB Rated
U.S. Agency Securities$ 26,141,942 N/A$ - $ 26,141,942 $ - -$ -$ Negotiable Certificates of Deposit 7,095,813 N/A - - - - 7,095,813 Medium Term Corp. Notes 9,367,795 A 991,490 1,039,910 6,307,245 1,029,150 * - Local Agency Investment Fund 14,813,749 N/A - - - - 14,813,749 Held by fiscal agent: Money market funds 3,430,950 N/A 3,430,950 - - - -
Total $ 60,850,249 $ 4,422,440 $ 27,181,852 $ 6,307,245 $ 1,029,150 $ 21,909,562
*This investment consist of a corporate note issued by GE capital. The notes were rated AA when purchased in June 2018. Although not required by the City’s investment policy, this investment was sold in October of 2019 due to ratings downgrades and rating agency guidance. The City retained an overall gain on this investment.
-53- 153 February 3, 2020, City Council Meeting Page No. 146 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(2) Cash and Investments, (continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:
Investment Reported Issuer Type Amount Federal Farm Credit Bank U.S. Agency Securities $ 9,951,420 Federal Home Loan Bank U.S. Agency Securities 12,210,502 Federal Home Loan Mortgage Corp. U.S. Agency Securities 3,980,020
5% of City's total investments 3,042,512
Custodial Credit Risk
Custodial credit risk for deposits is the risk that; in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (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. As of June 30, 2019, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.
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.
-54- 154 February 3, 2020, City Council Meeting Page No. 147 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(2) Cash and Investments, (continued)
Fair Value Measurements
Generally accepted accounting principles establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.
Fair Value Measurement Using Investments by Fair Value Level Total Level 1 Level 2 Level 3
U.S. Agency Securities$ 26,141,942 $ 26,141,942 $ - -$ Medium Term Corp. Notes 9,367,795 9,367,795 - - Negotiable Certificates of Deposit 7,095,813 7,095,813 - -
Total investments by fair value 42,605,550 $ 42,605,550 $ - -$
Investments not subject to GASB 72 Classification
Local Agency Investment 14,813,749 Fund (LAIF) Money Market Funds 3,430,950
Total $ 60,850,249
(3) Interfund Receivables, Payables and Transfers
Interfund receivables and payables were created in order to eliminate short-term deficit cash balances. Current interfund receivables and payables, reported as due to and due from other funds, as of June 30, 2019, are as follows:
Receivable Payable Amount
General Fund Traffic and Bicycle Safety $ 21,592 Community Development Block Grant 102,468 Miscellaneous Grants 28,409 $ 152,469
-55- 155 February 3, 2020, City Council Meeting Page No. 148 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(3) Interfund Receivables, Payables and Transfers, (continued)
Advances to/from other funds Receivable Payable Amount Sewer Fund General Capital Improvement Fund $ 1,370,000
The amount payable to the Sewer fund relates to a working capital loan made for the purchase of City street lights. This advance represents a 20 year loan between the Sewer Utility and the City. The advance is amortized over 20 years at 1.9% and was approved by City council on October 15, 2018. The balance will be repaid in annual installments with the final installment due on June 30, 2039.
Transfers in and out for the year ended June 30, 2019, were as follows:
Transfers In Transfers Out Amount General Fund Nonmajor Governmental Funds$ 2,521,120 (1) General Fund Housing Successor 15,000 (2) General Fund Loan Repayment Fund 4,800,612 (3) General Fund Sewer Fund 170,200 (4) General Fund Water Fund 1,274,900 (4) General Fund Internal Service Fund 100,000 (5) Loan Repayment Fund General Fund 2,866,999 (6) General Capital Improvement Fund General Fund 200,000 (7) Risk Management General Fund 50,000 (8) Nonmajor Governmental Funds General Fund 176,949 (9) General Capital Improvement Fund Nonmajor Governmental Funds 1,212,948 (10) General Capital Improvement Fund Water Fund 64,000 (10) General Capital Improvement Fund Sewer Fund 44,000 (10) Sewer Fund Nonmajor Governmental Funds 15,000 (11) Water Fund General Fund 997,376 (12)
Total $ 13,511,728
-56- 156 February 3, 2020, City Council Meeting Page No. 149 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(3) Interfund Receivables, Payables and Transfers, (continued)
(1) To help cover cost of street maintenance, police and fire safety, and to reimburse the General Fund for operational cost. a. Gas Tax street improvements $356,120 b. CFD 90-1 $1,208,000 c. Mobile Home Parks Operations $350,000 d. Public Safety Proposition 172 $391,000 e. Other $216,000 (2) Budget transfer to cover reporting and audit cost for City Housing Activities (3) Bond proceeds used to repay the General Fund for: a. Loan from the Water fund for POB repayment of $2,025,000 b. Prepayment of unfunded accrued pension liabilities of $2,775,612. (4) To allocate and reimburse the General Fund for support, overhead cost and service fees. (5) Budgeted transfer to cover General Fund’s cost. (6) Principal and interest transfers to the debt service fund for the General Fund’s portion of the 2018 POB debt service. (7) Transfer annual portion of future purchase of two ambulance units ($50,000) and transfer funds for purchase at public service radios ($150,000). (8) Initial self-retention funding for liability claims reserve account. (9) Budgeted transfer to Traffic Safety Fund $164,100 and Regional Maintenance Assessment Fund $12,849. (10) City Motorola Radios purchase $783,948, Golden Hills Road project $537,000. (11) Transfer from CFD 90-1 for sewer system maintenance. (12) Transfer to re-categorize Amherst Property valued in the Water Fund for sale of surplus property.
-57- 157 February 3, 2020, City Council Meeting Page No. 150 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(4) Capital Assets
The following is a summary of capital assets for the year ended June 30, 2019:
Governmental activities: Beginning Ending Balance Additions Deletions Balance Capital assets, not being depreciated: Land$ 11,762,527 $ 997,376 $ - $ 12,759,903 Land rights (associated w ith streets) 9,618,593 - - 9,618,593 Construction in progress - 143,701 - 143,701 Total capital assets, not being depreciated 21,381,120 1,141,077 - 22,522,197
Capital assets, being depreciated: Buildings and other improvements 24,645,885 89,903 - 24,735,788 Automotive equipment 8,370,807 346,735 (259,090) 8,458,452 Machinery and equipment 6,609,083 1,285,718 (1,707,580) 6,187,221 Office furniture and equipment 2,142,368 5,908 - 2,148,276 Infrastructure - streets 83,170,860 811,350 - 83,982,210 Infrastructure - bridges 2,606,850 - - 2,606,850 Infrastructure - signals 2,203,800 - - 2,203,800
Total capital assets, being depreciated 129,749,653 2,539,614 (1,966,670) 130,322,597
Less accumulated depreciation for: Buildings and other improvements (13,232,576) (652,045) - (13,884,621) Automotive equipment (4,384,246) (413,779) 236,263 (4,561,762) Machinery and equipment (3,881,742) (274,687) 976,661 (3,179,768) Office furniture and equipment (740,091) (241,851) - (981,942) Infrastructure - streets (74,086,143) (1,668,471) - (75,754,614) Infrastructure - bridges (1,207,371) (26,070) - (1,233,441) Infrastructure - signals (1,519,276) (33,996) - (1,553,272)
Total accumulated depreciation (99,051,445) (3,310,899) 1,212,924 (101,149,420)
Total capital assets being depreciated, net 30,698,208 (771,285) (753,746) 29,173,177
Governmental activities, capital assets, net$ 52,079,328 $ 369,792 $ (753,746) $ 51,695,374
Depreciation expense was charged to functions of the primary government as follows:
Governmental Activities:
General government $ 46,992 Public safety 801,958 Community development 12,095 Public w orks 2,038,284 Community services 411,570
Total - governmental activities $ 3,310,899
-58- 158 February 3, 2020, City Council Meeting Page No. 151 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(4) Capital Assets, (continued)
Business-type activities: Beginning Ending Balance Additions Deletions Balance Capital assets, not being depreciated: Land $ 2,019,603 $ - $ (246,375) $ 1,773,228 Construction in progress 26,250 3,740 (29,990) - Total capital assets, not being depreciated 2,045,853 3,740 (276,365) 1,773,228
Capital assets, being depreciated: Buildings and other improvements 319,402 - - 319,402 Automotive equipment 255,275 - - 255,275 Machinery and equipment 737,554 40,265 - 777,819 Office furniture and equipment 175,099 - - 175,099 Reservoirs 6,080,496 - - 6,080,496 Water distribution system 35,997,138 256,930 - 36,254,068 Sew er collection system 17,784,289 - - 17,784,289
Total capital assets, being depreciated 61,349,253 297,195 - 61,646,448
Less accumulated depreciation for: Buildings and other improvements (124,361) (16,615) - (140,976) Automotive equipment (207,666) (5,050) - (212,716) Machinery and equipment (288,674) (28,877) - (317,551) Office furniture and equipment (90,368) (10,331) - (100,699) Reservoirs (4,453,046) (113,688) - (4,566,734) Water distribution system (24,177,719) (806,640) - (24,984,359) Sew er collection system (12,640,891) (248,407) - (12,889,298)
Total accumulated depreciation (41,982,725) (1,229,608) - (43,212,333)
Total capital assets being depreciated, net 19,366,528 (932,413) - 18,434,115
Business-type activites, capital assets, net $ 21,412,381 $ (928,673) $ (276,365) $ 20,207,343
Depreciation expense was charged to the funds of the business-type activities as follows:
Business-type activities: Water $ 974,184 Sew er 255,424 $ 1,229,608
-59- 159 February 3, 2020, City Council Meeting Page No. 152 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(5) Due from Successor Agency / Due to City
Due from Successor Agency / Due to City balances at June 30, 2019, were as follows:
Receivable Payable Amount Housing Successor Successor Agency to the Redevelopment Agency of the City of La Verne $ 2,110,000
Per a loan agreement by the former City of La Verne Redevelopment Agency, a $2,410,000 advance was made from the RDA Low and Moderate Housing Fund to the RDA Debt Service Fund. This advance is to be used to help make the Supplemental Educational Revenue Augmentation Funds (SERAF) obligation. During fiscal year 2011, a payment of $480,000 was made on the $2,400,000 advance. In addition during fiscal year 2011, a new advance of $490,000 was issued. The advance is to be repaid in bi-annual amounts of $100,000 until the principal is repaid in full over a five year period. A repayment request was placed on the ROPS 17-18 A&B and approved by the State Department of Finance with a repayment in January 2018. During fiscal year 2012, this liability was transferred to the Successor Agency to the Redevelopment Agency of the City of La Verne due to the dissolution of the Redevelopment Agency. The amount outstanding at June 30, 2019 is $2,110,000.
(6) Long-term Liabilities
Long-term liability activity for the year ended June 30, 2019, was as follows:
Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities: Revenue Bonds: 1996 Revenue Bonds $ 4,900,000 $ - $ (405,000) $ 4,495,000 $ 435,000 2018 Pension Obligation Bonds - 49,050,134 (1,351,332) 47,698,802 1,170,550 Compensated absences 2,026,949 839,081 (902,413) 1,963,617 902,413
Total governmental activities $ 6,926,949 $ 49,889,215 $ (2,658,745) $ 54,157,419 $ 2,507,963
Busi ne ss-type a cti vitie s: Revenue Bonds: 2018 Pension Obligation Bonds $ - $ 5,214,866 $ (143,668) $ 5,071,198 $ 124,450 Compensated absences 181,778 98,378 (80,929) 199,227 80,929
Total business-type activities $ 181,778 $ 5,313,244 $ (224,597) $ 5,270,425 $ 205,379
-60- 160 February 3, 2020, City Council Meeting Page No. 153 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(6) Long-term Liabilities, (continued)
A. Revenue Bonds
On July 17, 1996, revenue bonds were issued by the La Verne Public Financing Authority (the Authority) in the amount of $9,245,000. The bonds were issued to finance the acquisition of the La Verne Mobile Country Club and to finance and reimburse the City for construction costs of a community sports complex. The net income of the mobile home park operations and a portion of the tax allocation revenues distributed from the Redevelopment Property Tax Trust Fund (RPTTF) as approved by the State of California Department of Finance Required Obligation Schedules (ROPS) are pledged toward payment of the bonds. In addition, the Authority is required to operate the park to ensure that the ratio of pledged payments plus net park revenues to the annual debt service for any particular year is at least 1.3 to 1. During the year ended June 30, 2019 rents of $1,394,943 and RPTTF payments of $350,000 were received as pledged revenue while total principal and interest payments were $745,569.
Interest on the bonds is payable semi-annually on March 1 and September 1 of each year. Of the total issue, $1,940,000 mature serially through September 1, 2009 in annual principal installments ranging from $115,000 to $220,000, subject to optional redemption beginning September 1, 2006, and pay interest varying from 5% to 6.6%; $1,680,000 are 6% term bonds due September 1, 2015 and are subject to mandatory redemption from sinking fund payments in amounts ranging from $235,000 to $330,000; and $5,625,000 are 7.25% term bonds due on September 1, 2026 and are subject to mandatory redemption from sinking fund payments in amounts ranging from $350,000 to $710,000. The principal balance outstanding at June 30, 2019 was $4,495,000.
B. Debt Service Requirement to Maturity
Minimum annual requirements to amortize all long-term debt of the City as of June 30, 2019 including minimum future capital lease payments, are as set forth below. Compensated absences have been excluded from the following schedule because minimum annual debt service requirements for this obligation have not been established. Advances from Other Funds represent an inter-entity loan between the Governmental and Business-Type Activities within the Primary Government, in accordance with an interfund loan agreement.
Year Ending 1996 Revenue Bonds June 30, Principal Interest 2020$ 435,000 $ 310,119 2021 465,000 277,494 2022 500,000 242,513 2023 535,000 204,994 2024 575,000 164,756 2025 615,000 121,619 2026 660,000 75,400 2027 710,000 25,738
Totals$ 4,495,000 $ 1,422,633
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(6) Long-term Liabilities, (continued)
C. Pension Obligation Bonds
On July 25, 2018, the City of La Verne issued its 2018 Taxable Pension Obligation Bonds in the amount of $54,265,000. The bonds were issued to finance a portion of the City’s unfunded liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees, to reimburse the City for its early prepayment of previously issued pension obligation bonds and pay the costs incurred in connection with the issuance of the bonds. The bonds bear variable interest rates ranging from 2.702% to 4.189% and are payable semi- annually on June 1 and December 1 of each year, commencing December 1, 2018 until maturity or earlier redemption.
The bonds do not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation. The bonds do not constitute an indebtedness of the City, the State or any of its political subdivisions in contravention of any constitutional or statutory debt limitations or restriction. For purposes of paying principal and interest on the bonds, the City is obligated, under the trust agreement, to take such actions annually as necessary or appropriate to cause the debt service on the bonds due in any fiscal year to be included in the budget for such fiscal year and to make the necessary appropriations therefor from any legally available funds, including the General Fund and amounts charged to the City’s Water Fund and Sewer Fund for the allocable cost of pension benefits for the employees of the City’s water utility enterprise and sewer enterprise, to ensure that sufficient sums are available to pay the annual principal of and interest on the bonds as the same become due.
The annual requirements to amortize the 2018 Pension Obligation Bond outstanding at June 30, 2019 were as follows:
Year Ending Governmental Activities Business-Type Activities Total June 30, Principal Interest Principal Interest Principal Interest 2020$ 1,170,550 $ 1,912,323 $ 124,450 $ 203,313 $ 1,295,000 $ 2,115,636 2021 1,206,706 1,876,077 128,294 199,459 1,335,000 2,075,536 2022 1,242,862 1,837,358 132,138 195,343 1,375,000 2,032,701 2023 1,283,538 1,795,771 136,462 190,921 1,420,000 1,986,692 2024 1,324,213 1,751,207 140,787 186,183 1,465,000 1,937,390 2025-2029 7,375,824 7,979,840 784,176 848,393 8,160,000 8,828,233 2030-2034 8,984,766 6,371,851 955,234 677,437 9,940,000 7,049,288 2035-2039 11,239,997 4,237,560 1,195,003 450,525 12,435,000 4,688,085 2040-2044 13,870,346 1,547,326 1,474,654 164,507 15,345,000 1,711,833
Totals$ 47,698,802 $ 29,309,313 $ 5,071,198 $ 3,116,081 $ 52,770,000 $ 32,425,394
-62- 162 February 3, 2020, City Council Meeting Page No. 155 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(7) Defined Benefit Pension Plan (PERS)
A. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
During the year ended June 30, 2019, the City issued $54,265,000 in pension obligation bonds to pay off the unfunded accrued liability (UAL) for the City’s classic Miscellaneous and Safety pension plans. However, the net pension liability for these two plans is determined based on a measurement date of June 30, 2018. As a result, the payments made by the City to pay off the net pension liabilities are considered deferred outflows of resources in the City’s statement of net position and a net pension liability for these plans is still reflected in the statement of net position at June 30, 2019. Of the $59,725,668 in pension related deferred outflows reflected in the statement of net positon, $53,729,819 represent payments made to eliminate the UAL for these plans that will be applied against the net pension liability determined at June 30, 2019.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
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(7) Defined Benefit Pension Plan (PERS), (continued)
A. General Information about the Pension Plans, (continued)
Benefits Provided, (continued)
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.
The Plan’s provisions and benefits in effect at June 30, 2019 are summarized as follows:
Miscellaneous Classic PEPRA Prior to On or after Membership 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 - 67 52 - 67 Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 8.00% 6.25% Required employer contribution rates 10.609% 6.842%
Safety Classic PEPRA Prior to On or after Membership date January 1, 2013 January 1, 2013 Benefit formula 3% @ 50 2.5% @ 57 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50 - 55 50 - 57 Monthly benefits, as a % of eligible compensation 3.0% 2.0% to 2.5% Required employee contribution rates 9.00% 12.00% Required employer contribution rates 20.556% 12.141%
-64- 164 February 3, 2020, City Council Meeting Page No. 157 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(7) Defined Benefit Pension Plan (PERS), (continued)
A. General Information about the Pension Plans, (continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Employer Contributions to the Plan for the fiscal year ended June 30, 2019 were $53,729,819. The actual employer payments of $4,280,435 made to CalPERS by the City during the measurement period ended June 30, 2018 differed from the City’s proportionate share of the employer’s contributions of $5,456,335 by $1,175,900, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2018, using an annual actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows:
-65- 165 February 3, 2020, City Council Meeting Page No. 158 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(7) Defined Benefit Pension Plan (PERS), (continued)
B. Net Pension Liability, (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Miscellaneous Plans Safety Plans Valuation Date June 30, 2017 June 30, 2017 Measurement Date June 30, 2018 June 30, 2018 Actuarial Cost Method Entry Age Normal Entry Age Normal Asset Valuation Method: Market Value of Assets Market Value of Assets Discount Rate 7.15 7.15 Inflation 2.50% 2.50% Salary Increase (1) 3.30% - 14.20% 3.30% - 14.20% Mortality Rate Table (2) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.0% until purchasing power power protection allowance floor on purchasing power applies, 2.5% thereafter.
(1) Annual increase vary by category, entry age, and duration of service (2) The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on the table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
All other actuarial assumptions used in the June 30, 2017 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 can be obtained at CalPERS’ website, at www.calpers.ca.gov.
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 expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ 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.
-66- 166 February 3, 2020, City Council Meeting Page No. 159 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(7) Defined Benefit Pension Plan (PERS), (continued)
B. Net Pension Liability, (continued)
Long-term Expected Rate of Return, (continued)
The expected real rates of return by asset class are as follows:
Current Target Real Return Real Return Asse t Cla ss1 Allocation Years 1 - 102 Year 11+3
Global Equity 50.0% 4.80% 5.98% Global Fixed income 28.0% 1.00% 2.62% Inflation Sensitive 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Estate 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% (0.92%)
Total 100.0%
1 In the System's CAFR, fixed income is included in global debt securities; liquidity is included in short-term investments; inflation assets are included in both global equity securities and global debt securities. 2 An expected inflation of 2.0% used for this period 3 An expected inflation of 2.92% used for this period
Change of Assumptions
In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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(7) Defined Benefit Pension Plan (PERS), (continued)
B. Net Pension Liability, (continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and Other Post-Employment Benefits (OPEB) expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves.
C. Proportionate Share of Net Pension Liability
The following table shows the Plans’ proportion share of the net pension liability over the measurement period.
MISCELLANEOUS Increase (Decrease) Plan Total Plan Fiduciary Net Plan Net Pension Pension Liability Position Liability (a) (b) (c) = (a) - (b) Balance at: 6/30/2017 (VD)$ 60,832,449 $ 42,166,568 $ 18,665,881 Balance at: 6/30/2018 (MD)$ 63,365,472 $ 45,002,096 $ 18,363,376 Net changes during 2017-18$ 2,533,023 $ 2,835,528 $ (302,505)
SAFETY Increase (Decrease) Plan Total Plan Fiduciary Net Plan Net Pension Pension Liability Position Liability (a) (b) (c) = (a) - (b) Balance at: 6/30/2017 (VD)$ 116,679,126 $ 84,079,001 $ 32,600,125 Balance at: 6/30/2018 (MD)$ 121,776,133 $ 88,704,955 $ 33,071,178 Net changes during 2017-18$ 5,097,007 $ 4,625,954 $ 471,053
Valuation Date (VD), Measurement Date (MD).
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(7) Defined Benefit Pension Plan (PERS), (continued)
C. Proportionate Share of Net Pension Liability, (continued)
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, 2018, 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, 2017 rolled forward to June 30, 2018 using standard update procedures. The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The Local Government’s proportionate share of the net pension liability for the Plan as of the June 30, 2017 and 2018 measurement dates was as follows:
Miscellaneous Safety Total Proportionate Share of NPL - June 30, 2017 0.47351% 0.54559% 0.51694% Proportionate Share of NPL - June 30, 2018 0.48726% 0.56363% 0.53376% Change - Increase (Decrease) 0.01375% 0.01804% 0.01682%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1% (6.15%) Rate (7.15%) (8.15%) Total Plans' Net Pension Liability$ 76,793,696 $ 51,434,554 $ 30,604,454
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
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(7) Defined Benefit Pension Plan (PERS), (continued)
C. Proportionate Share of Net Pension Liability, (continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between 5 year straight-line amortization projected and actual earnings
All other amounts Straight-line amortization over the average expected remaining services lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
The EARSL for PERF C for the measurement period ending June 30, 2018 is 3.8 years, which was obtained by dividing the total service years of 516,147 (the sum of remaining service lifetimes of the active employees) by 135,474 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
-70- 170 February 3, 2020, City Council Meeting Page No. 163 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(7) Defined Benefit Pension Plan (PERS), (continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2017), the net pension liability for the plans are $51,266,006. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense of $7,874,648 for the Plans.
As of June 30, 2019, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience $ 1,172,702 $ - Changes of Assumptions 4,387,478 - Difference Between Projected and Actual Earnings on Pension Plan Investments 314,691 - Change in Employer's Proportion 120,978 - Difference in Actual vs Projected Contributions - (1,253,154) Pension Contributions Subsequent to Measurement Date 53,729,819 - Total $ 59,725,668 $ (1,253,154)
-71- 171 February 3, 2020, City Council Meeting Page No. 164 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(7) Defined Benefit Pension Plan (PERS), (continued)
E. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
These amounts above are net of outflows and inflows recognized in the 2017-18 measurement period expense. Contributions subsequent to the measurement date of $53,729,819 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Deferred Measurement Period Outflows/(Inflows) of Ended June 30: Resources, Net 2020$ 4,361,274 2021 2,396,541 2022 (1,620,884) 2023 (394,236) 2024 - Thereafter -
F. Payable to the Pension Plan
At June 30, 2019, the City reported a payable of $-0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2019.
(8) Post-Employment Benefits Other than Pensions
Plan description
The City has established a Retiree Healthcare Plan (OPEB Plan), and participates in a single- employer defined benefit retiree healthcare plan. This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 55 or older with at least five years of State or public agency service. The benefits are provided in the form of monthly City contributions toward the retiree’s premium. Medical plan benefits are provided through PERS, as permitted by the Public Employees’ Medical and Hospital and Care Act (PEMHCA). As a PEMHCA employer, the City has elected the unequal contribution method, where the contribution will be increased annually until it reaches the same employer contribution as active employee medical plan coverage. A separate financial report is not prepared for the OPEB Plan.
-72- 172 February 3, 2020, City Council Meeting Page No. 165 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(8) Post-Employment Benefits Other than Pensions, (continued)
Employees Covered
As of the June 30, 2017 actuarial valuation, rolled forward to June 30, 2018 measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:
Active employees 184 Inactive employees or beneficiaries currently receiving benefits48 Inactive employees entitled to, but not yet receiving benefits - Total 232
Contributions
The City makes contributions to eligible retirees for their medical plan premiums when the retiree enrolls in a City sponsored health plan. The current monthly amount paid by the City ranges from $79.62 - $1,298.62, depending on the retiree’s bargaining unit at retirement. These amounts do not increase in future years to account for inflation. The City provided amounts are detailed in the Summary of Principal Plan Provisions. For the fiscal year ended June 30, 2019, the City’s cash contributions were $441,925 in payments for premiums paid on behalf of retirees.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2018 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2018, based on the following actuarial methods and assumptions:
Actuarial Assumptions June 30, 2017 Measurement Date Actuarial Valuation Date June 30, 2017 Contribution Policy City contributes full ADC Discount Rate 6.50% General Inflation 2.75% Mortality, Retirement, Disability, Same as June 30, 2017 actuarial valuation Termination CalPERS 1997-2015 Experience Study Salary increases 3% aggregate; merit CalPERS 1997-2015 experience study Medic al Trend Non-Medicare rate of 7.5% and Medicare rate of 6.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076 and later years
Healthcare Participation If City-paid benefit is 80% of premium: 95% If City-paid benefit is 60% of premium: 85% If City-paid benefit continues post-Medicare: 95%
-73- 173 February 3, 2020, City Council Meeting Page No. 166 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(8) Post-Employment Benefits Other than Pensions, (continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.50% percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.
Changes in the OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:
(a) (b) (a) - (b) = (c)
Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability Balance at June 30, 2018 (6/30/17 measurement date) $ 9,856,330 $ 2,844,969 $ 7,011,361 Changes recognized for the measurement period: Service cost 331,548 - 331,548 Interest 643,684 - 643,684 Differences between expected and - actual experience - - - Changes of assumptions - - - Contributions – employer - 781,889 (781,889) Net investment income - 204,975 (204,975) Benefit payments (570,093) (570,093) - Administrative expense - (8,850) 8,850 Net changes 405,139 407,921 (2,782) Balance at June 30, 2019 (6/30/18 measurement date) $ 10,261,469 $ 3,252,890 $ 7,008,579
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 one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018.
1% Decrease Current Discount 1% Increase (5.50%) Rate (6.50%) (7.50%) Net OPEB Liability$ 7,968,240 $ 7,008,579 $ 6,161,684
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the Authority if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018.
Current Healthcare 1% Decrease Cost Trend Rates 1% Increase Net OPEB Liability$ 5,969,059 $ 7,008,579 $ 8,222,617
-74- 174 February 3, 2020, City Council Meeting Page No. 167 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(8) Post-Employment Benefits Other than Pensions, (continued)
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2019, the City recognized OPEB expense of $771,702. As of fiscal year ended June 30, 2019, the City reported deferred outflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows of of Resources Resources Net difference between projected and actual earnings on OPEB plan investments $ - $ 86,867 Contributions to OPEB plan subsequent to the measurement date 1,016,879 -
Total $ 1,016,879 $ 86,867
The $1,016,879 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2018 measurement date will be recognized as a reduction of the net OPEB liability during the upcoming fiscal year. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows.
Deferred Fiscal Year Outflows/(Inflows) Ended June 30 of Resources 2019 $ (27,607) 2020 (27,607) 2021 (27,609) 2022 (4,044) 2023 - Thereafter -
$ (86,867)
-75- 175 February 3, 2020, City Council Meeting Page No. 168 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(9) Deferred Compensation Plan
The City has established a deferred compensation plan, whereby City employees may elect to defer portions of their compensation in return for retirement, disability and death benefits. Amounts deferred may not exceed the lesser of $19,000 for employees less than 50 years of age and $25,000 for employees over 50 years of age or 25% of gross income. The City makes no contribution to the plan for full-time employees. For part-time employees, the City’s contribution is 2.5% of the employees' salary and the employees' contribution is 5% of the employee's salary. Distributions are made upon the occurrence of the participant's termination, retirement, death or total disability, and in a manner in accordance with the election made by the City. In December 1998, the City established a trust for this plan as required by federal legislation. As a result, these assets are held in trust for the exclusive benefit of the plan participants and their beneficiaries. Accordingly, these assets are excluded from the accompanying financial statements.
(10) Debt Issued Without Government Commitment
A. Revenue Certificates of Participation
On January 1, 2003, the City of La Verne issued $47,000,000 of Revenue Certificates of Participation (Certificates). The Certificates were issued to finance the construction, expansion and equipping of a retirement facility located in La Verne, California. The Certificates constitute special obligations of the issuer payable solely from revenues made by Brethren Hillcrest Homes. The City is not directly, indirectly, contingently, or morally obligated to use any other monies or assets of the City for all or any portion of the payments. In addition, the payments do not constitute a debt or liability of the City. Accordingly, the certificates are not shown as liabilities in the accompanying basic financial statements. The principal balance outstanding at June 30, 2019 is $31,770,000.
On July 10, 2014, the City issued 2014 Certificates of Participation in the amount of $38,660,000. The proceeds of the Certificates will be used to finance all of the outstanding principal amount of the Revenue Certificates of Participation for Brethren Hillcrest Homes Series 2003 and to reimburse certain costs incurred in connection with a senior living community. The Certificates will mature on May 15, 2036. The Certificates were issued with interest rates ranging from 2% to 5%.
B. Revenue Bonds
On June 26 2014, the City of La Verne issued $9,025,000 of Revenue Refunding Bonds Series 2014. The purpose of the bonds was to refund in full the City’s previously issued Mobile Home Park Revenue Bonds Series 2003A, Subordinate Revenue Bonds Series 2003B & 2003C which were used to finance the acquisition of the Copacabana Mobile Home Park, and to provide funds for improvements to the Mobile Home Park. The bonds constitute special obligations of the issuer payable solely from the revenues made by Copacabana Mobile Home Park. The City is not directly, indirectly, contingently, or morally obligated to use any other monies or assets to the City for all or any portion of the payments. In addition, the payments do not constitute a debt of liability of the City. Accordingly, the bonds are not shown as liabilities in the accompanying basic financial statements. The principal balance outstanding at June 30, 2019 is $8,145,000.
-76- 176 February 3, 2020, City Council Meeting Page No. 169 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(11) Risk Management
The City of La Verne is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment applies annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
Liability Program
The City has a member retained limit of $250,000. The Authority’s pooled retention is $5 million per occurrence, with reinsurance to $30 million, excess insurance to $50 million, and is funded at the 70%- 80% confidence level. The Authority’s reinsurance contracts are subject to the following additional pooled retentions: (a) $1 million annual aggregate deductible in the $5 million in excess of $5 million layer; (b) $3 million annual aggregate deductible in the $10 million in excess of $10 million layer; (c) $3 million annual aggregate deductible in the $10 million in excess of $10 million layer; (d) $10 million in excess of $20 million; (e) $10 million in excess of $30 million. The overall coverage limit for each member in the excess poll, including all layers of coverage, is $50 million per occurrence. Members retain settlement authority over claims within their layer, except for certain defined claim types that have catastrophic potential. Members use the Authority’s designated claims administrator and their own trust account for claim payments. In the excess liability program, members retain the right to select defense counsel from the Authority’s pre-approved panel. The program is funded by annual contributions from members that cover the pooled layer of losses, operating expenses, and most training and risk management program expenses. Member-retained losses and claims administration cost are paid directly by the members.
-77- 177 February 3, 2020, City Council Meeting Page No. 170 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(11) Risk Management, (continued)
Workers’ Compensation
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2018-19, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
Pollution Legal Liability Insurance
The City of La Verne participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of La Verne. Coverage is on a claims- made basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2017 through July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.
Property Insurance
The City of La Verne participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of La Verne property is currently insured according to a schedule of covered property submitted by the City of La Verne to the Authority. City of La Verne property currently has all-risk property insurance protection in the amount of $54,969,606. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
-78- 178 February 3, 2020, City Council Meeting Page No. 171 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(11) Risk Management, (continued)
Earthquake and Flood Insurance
The City of La Verne purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of La Verne property currently has earthquake protection in the amount of $11,958,900. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
Crime Insurance
The City of La Verne purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
Special Event Tenant User Liability Insurance
The City of La Verne further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of La Verne according to a schedule. The City of La Verne then pays for the insurance. The insurance is facilitated by the Authority.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2018-19.
(12) Joint Venture Organizations
Tri City Mental Health Center
The City is a member of the Tri City Mental Health Center (Center). The Center is a jointly governed organization comprised of three cities and is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of the Center is to develop mental health services and facilities to serve persons residing in the three member cities.
The Board of Directors has five members, one from the City of Claremont, three from the City of Pomona, and one from the City of La Verne.
-79- 179 February 3, 2020, City Council Meeting Page No. 172 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(12) Joint Venture Organizations, (continued)
Tri City Mental Health Center, (continued)
The financial statements noted that Tri City filed a petition under Chapter 9 of the Bankruptcy Code in February 2004 and that Tri City had emerged from that bankruptcy filing and noted the approved plan for the adjustment of debts in fiscal year 2013-2014.
Below are the most currently available condensed audited financial statements of the Tri City Mental Health Center as of June 30, 2019. Separate financial statements of the Center are available from its offices located in Claremont, California. For more information, contact the City's Finance Department.
Assets $ 45,272,922
Deferred outflows of resources 2,671,142
Liabilities 14,930,255
Deferred inflows of resources 8,542,698
Net investment in capital assets 6,299,892 Restricted net position 15,119,523 Unrestricted net position 3,051,696
Total net position $ 24,471,111
Operating revenues $ 8,225,543 Operating expenses 20,586,181 Operating loss (12,360,638) Non-operating revenue (expenses) 16,358,922 Change in net position 3,998,284 Net position - July 1 20,472,827
Net position - June 30 $ 24,471,111
(13) Claims and Judgments
Various claims and suits have been filed against the City in the normal course of business. Although the outcome of these lawsuits is not presently determinable, in the opinion of management, the resolution of these matters will not have a material adverse effect on the financial condition of the government.
-80- 180 February 3, 2020, City Council Meeting Page No. 173 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(14) Governmental Fund Balances
The detail of fund balances reported in the balance sheet of governmental funds is as follows:
General Nonmajor Housing Capital Governmental Totals General Successor Improvement Funds 2019 2018 Fund balances:
Nonspendable: Prepaid items $ - -$ -$ -$ -$ -$ Inventory of materials and supplies ------Total Nonspendable ------
Restricted for: General government 627,017 - - - 627,017 - Public safety 135,264 - - 7,422,374 7,557,638 5,008,180 Community services - - - 2,577,230 2,577,230 2,265,643 Community development - 3,114,634 - 5,040,211 8,154,845 8,405,339 Public works 26,062 - 1,152,879 6,182,657 7,361,598 5,680,160 Debt service - - - - - 31,887 Total Restricted 788,343 3,114,634 1,152,879 21,222,472 26,278,328 21,391,209
Committed: Emergency contingency 5,243,681 - - - 5,243,681 4,906,490 Other purposes 42,915 - - - 42,915 45,431 Total Committed 5,286,596 - - - 5,286,596 4,951,921
Assigned to: Future operations 161,723 - - - 161,723 582,314 Median salary adjustments 276,002 - - - 276,002 - Disaster recovery 1,000,000 - - - 1,000,000 1,000,000 Other benefit obligation 2,928,400 - - - 2,928,400 2,808,437 Capital Projects 500,000 - 399,652 3,543,983 4,443,635 5,327,593 Total Assigned 4,866,125 - 399,652 3,543,983 8,809,760 9,718,344
Unassigned 39,138 - - (39,138) - -
Total fund balances$ 10,980,202 $ 3,114,634 $ 1,552,531 $ 24,727,317 $ 40,374,684 $ 36,061,474
Emergency contingency fund balances were committed at the City’s highest level of authority by the City Council. On June 20, 2011 the City Council adopted Resolution No. 11-61 which established an emergency contingency reserve equivalent to 15% of the following fiscal year’s General Fund budgeted operating expenditures (excluding transfers and capital projects). The reserve may be used for expenditures in the event of a state or federal emergency or a local emergency as defined in the City’s Municipal Code, and is shown as a component of committed fund balance above. The City also adopted one or more Resolutions to commit fund balances for other miscellaneous purposes.
-81- 181 February 3, 2020, City Council Meeting Page No. 174 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(15) Net Position
Net Investment in Capital Assets
Net position for governmental activities and business-type activities is classified as 1) net investment in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2019, was determined as follows:
Governmental Activities Capital assets, net of accumulated depreciation $ 51,695,374
Less capital related debt balance: Outstanding principal balance of 1996 Revenue Bonds (4,495,000)
Net investment in capital assets $ 47,200,374
Business-type Activities Total Enterprise Water Sewer Funds Capital assets, net of accumulated depreciation $ 15,166,115 $ 5,041,228 $ 20,207,343 Water rights, net of accumulated amortization 11,976,728 - 11,976,728
Net investment in capital assets $ 27,142,843 $ 5,041,228 $ 32,184,071
(16) Successor Agency Trust for the Former Redevelopment Agency
The debt of the Successor Agency as of June 30, 2019, is as follows:
Beginning Ending Due Within Balance Additions Deletions Balance One Year Successor Agency: 2009 Lease Agreement$ 353,000 $ - $ (353,000) -$ -$ Notes Payable: Tight Lines LLC 25,733 - (13,109) 12,624 12,624 Haaker Equipment 15,000 - (15,000) - -
Total long-term liabilities$ 393,733 $ - $ (381,109) 12,624$ $ 12,624
-82- 182 February 3, 2020, City Council Meeting Page No. 175 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(16) Successor Agency Trust for the Former Redevelopment Agency, (continued)
A. Lease Agreement
On May 11, 2009, a Lease Agreement was executed between the City of La Verne and the Municipal Finance Corporation (Corporation) in the amount of $2,777,000 for the purpose of refinancing the 1996 Certificates and the 1996 Lease Payments. The purpose of the 1996 Certificates was to refund the Agency's previously issued 1988 Certificates of Participation executed to finance the acquisition (by the City of La Verne Redevelopment Agency) of the Las Flores Park site, and the City used the proceeds paid to it for the acquisition, construction, installment and reimbursement of prior expenditures relating to the San Polo (formerly known as Koll Business Park) public improvements and various other Agency public improvements. In order to make the payments on the Lease Agreement, the City has leased certain real property to the Corporation. The Corporation has proposed to lease the Leased Property back to the City in consideration of the payment by the City of semi-annual lease payments on May 1 and November 1 of each year. The Agency will provide certain tax increment revenues to the Corporation on behalf of the City in such amount as may be necessary for the repayment of such portions of all current or previous unreimbursed lease payments made by the City to the Corporation. Total balance outstanding was paid as of year ended June 30, 2019.
B. Notes Payable
The following owner participation agreements are reported as notes payable as of June 30, 2019.
Tight Lines LLC
On October 19, 2009, the Agency entered into an agreement with Tight Lines LLC in consideration for a covenant to operate within the Agency Project Area. This agreement obligates the Agency to provide economic development assistance to the company equal to 11.5% of the local sales tax received by the City from a business affiliate’s operation over a ten year period, not to exceed an aggregate amount of $395,000. The remaining maximum development assistance at June 30, 2019, is $12,624.
Haaker Equipment Company
On October 19, 2009, the Agency entered into an agreement with Haaker Equipment Company, a street sweeper and sewer cleaning truck dealership, in consideration for a covenant to operate within the Agency’s Project Area. This agreement obligates the Agency to provide economic development assistance to the company equal to 10% of the local sales tax received by the City from Haaker's operations over a ten year period, not to exceed an aggregate amount of $150,000. The maximum development assistance was paid in full as of June 30, 2019.
-83- 183 February 3, 2020, City Council Meeting Page No. 176 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(16) Successor Agency Trust for the Former Redevelopment Agency, (continued)
C. Low and Moderate Income Housing Pledge Agreement
On July 17, 1996, revenue bonds were issued by the La Verne Public Financing Authority (the Authority) in the amount of $9,245,000. The bonds were issued to finance the acquisition of the La Verne Mobile Country Club and to finance and reimburse the City for construction costs of a community sports complex. The net income of the mobile home park operations and a portion of the tax allocation revenues distributed from the Redevelopment Property Tax Trust Fund (RPTTF) as approved by the State of California Department of Finance Required Obligation Schedules (ROPS) are pledged toward payment of the bonds. The Authority operates the park to ensure that the ratio of pledged payments plus net park revenues to the annual debt service for any particular year is at least 1.3 to 1.
(17) Risks and Uncertainties
Lawsuits, Legal Settlements and Administrative Claims
During the normal course of operations, the City is the defendant in various lawsuits and is named in certain claims subject to administrative review. Subsequent to the fiscal year end, a personnel related claims were settled by the City for $150,000. Although the outcome of other lawsuits and administrative claims are not presently determinable, in the opinion of the City's management and legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City.
Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial.
Successor Agency
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2019 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency, or payments made by the former Redevelopment Agency prior to dissolution, are disallowed by the State agencies or the County, the City, acting as the Successor Agency, could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses or payments that may be disallowed by the State agencies or the County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial.
-84- 184 February 3, 2020, City Council Meeting Page No. 177 City of La Verne Notes to the Basic Financial Statements For the Year Ended June 30, 2019
(18) Deficit Fund Balances
Funds Fund Type Deficit Non-major governmental funds: Miscellaneous Grants Fund Special Revenue $ (39,138)
At June 30, 2019, the Miscellaneous Grants Fund, a non-major special revenue fund, has a deficit fund balance of $39,138. This fund balance deficit reflects an obligation to the General Fund at June 30, 2019, and as such, the General Fund reflects unassigned fund balances sufficient to cover this deficit. This deficit was due to expenditures for new grants that were recognized as unearned revenue and cash deficits from the General Fund. Grant reimbursements for these costs were received subsequent to year end.
-85- 185 February 3, 2020, City Council Meeting Page No. 178
REQUIRED SUPPLEMENTARY INFORMATION
186 February 3, 2020, City Council Meeting Page No. 179 City of La Verne Notes to Required Supplementary Information For the Year Ended June 30, 2019
(1) Budgets and Budgetary Accounting
According to Section 3.04.050 of the La Verne Municipal Code, the City Council is required to adopt an annual budget.
The City adopts an annual budget prepared on the modified accrual basis and consistent with generally accepted accounting principles for the governmental funds except for the debt service funds. Formal budgetary integration is not employed in the accounting records for the debt service funds of the City because effective budgetary control is alternatively achieved through the provisions of the related debt agreements. Council approval for issuance of the 1996 Revenue Bonds constitutes budget authority for the expenditures of the related funds. The City Manager is required to prepare and submit to the City Council the annual budget of the City and administer it after adoption. City Council approval is required for budget revisions that increase total City appropriations. Prior year appropriations lapse unless they are encumbered at year end or re-appropriated through the formal budget process. Supplemental appropriations were not material.
Formal budgetary integration is employed as a management control device during the year for all the governmental type funds. Budgets for all the governmental type funds are adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts are as originally adopted and are further amended by the City Council.
Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to amend the budget without the approval of the City Council. However, the City Manager may authorize transfers from one account to another within the same fund.
-86- 187 February 3, 2020, City Council Meeting Page No. 180 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts Revenues: Property taxes$ 11,449,900 $ 11,770,300 $ 12,268,704 $ 498,404 $ 7,980,984 Other taxes 8,318,740 8,522,340 8,669,220 146,880 11,825,767 Licenses and permits 1,329,720 1,151,980 1,337,888 185,908 2,026,719 Intergovernmental 263,500 263,500 292,933 29,433 333,782 Charges for services 5,612,000 7,336,000 7,101,086 (234,914) 7,511,906 Fines and forfeitures 25,000 25,000 15,650 (9,350) 11,481 Investment income 145,000 145,000 195,161 50,161 139,590 Net increase (decrease) in the fair value of investments 150,665 150,665 150,665 - (25,442) Rents 198,600 248,600 268,363 19,763 490,104 Other 957,634 1,052,774 173,442 (879,332) 176,310 Donations and contributions 809,374 809,374 809,374 - -
Total revenues 29,260,132 31,475,533 31,282,486 (193,047) 30,471,201
Expenditures: Current: General government 2,480,981 2,780,038 2,872,581 (92,543) 2,545,181 Public safety 20,957,880 21,597,226 21,433,652 163,574 20,062,765 Community development 1,699,154 1,705,108 2,055,162 (350,054) 1,748,040 Public works 7,099,137 7,145,834 6,783,507 362,327 6,763,314 Community services 1,582,244 1,638,023 1,630,562 7,461 1,590,813
Total expenditures 33,819,396 34,866,229 34,775,464 90,765 32,710,113
Excess (deficiency) of revenues over (under) expenditures (4,559,264) (3,390,696) (3,492,978) (102,282) (2,238,912)
Other Financing Source s (Use s): Transfers in 4,483,600 8,906,561 8,881,832 (24,729) 3,271,220 Transfers out (236,698) (3,316,698) (4,291,324) (974,626) (245,950)
Total other financing sources (uses) 4,246,902 5,589,863 4,590,508 (999,355) 3,025,270
Net change in fund balance (312,362) 2,199,167 1,097,530 (1,101,637) 786,358
Fund balance, beginning of year 9,882,672 9,882,672 9,882,672 - 9,096,314
Fund balance, end of year $ 9,570,310 $ 12,081,839 $ 10,980,202 $ (1,101,637) $ 9,882,672
-87- 188 February 3, 2020, City Council Meeting Page No. 181 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Housing Successor For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Investment income$ 450 $ 450 $ 6,212 $ 5,762 $ 1,155 Net increase (decrease) in the fair value of investments - - 5,631 5,631 (1,960)
Total revenues 450 450 11,843 11,393 (805)
Excess of revenues over (under) expenditures 450 450 11,843 11,393 (805)
Other Financing Uses: Transfers out (15,000) (15,000) (15,000) - (11,000)
Total other financing uses (15,000) (15,000) (15,000) - (11,000)
Net change in fund balance (14,550) (14,550) (3,157) 11,393 (11,805)
Fund balance, beginning of year 3,117,791 3,117,791 3,117,791 - 3,129,596
Fund balance, end of year $ 3,103,241 $ 3,103,241 $ 3,114,634 $ 11,393 $ 3,117,791
-88- 189 February 3, 2020, City Council Meeting Page No. 182 City of La Verne Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date – Last 10 Years* For the Year Ended June 30, 2019
Employer's Proportionate Share of the Pension's Employer's Collective Net Plans Fiduciary Employer's Proportionate Pension Net Position as Proportion of Share of the Liability as a a Percentage of the Collective Collective Net Percentage of the Total Measurement Net Pension Pension Employer's the Employer's Pension Date Liability1 Liability Covered Payroll Covered Payroll Liability
6/30/2014 0.46300%$ 28,817,180 $ 12,818,378 224.81% 81.10% 6/30/2015 0.51571% 35,397,881 13,997,575 252.89% 77.35% 6/30/2016 1.02003% 44,788,142 14,426,087 310.47% 72.39% 6/30/2017 1.01910% 51,266,006 14,472,818 354.22% 73.31% 6/30/2018 1.05089% 51,434,554 13,073,674 393.42% 72.22%
1 Proportion of the collective net pension liability represents the plan’s proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
*Measurement period 2013-14 (fiscal year 2014-15) was the first year of implementation.
*Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available.
-89- 190 February 3, 2020, City Council Meeting Page No. 183 City of La Verne Schedule of Plans’ Contribution – Last 10 Years* For the Year Ended June 30, 2019
Contributions in Relation to the Contributions Contractually Contractually Contribution as a Determined Determined Deficiency Employer's Percentage of Fiscal Year Contributions Contributions (Excess) Covered Payroll Covered Payroll 2014-15$ 2,895,519 $ (2,895,519) $ - $ 13,997,575 20.69% 2015-16 3,581,099 (3,581,099) - 14,426,087 24.82% 2016-17 3,912,718 (3,912,718) - 14,472,818 27.03% 2017-18 4,280,435 (4,280,435) - 13,073,674 32.74% 2018-19 4,767,160 (53,729,819) (48,962,659) 12,683,876 423.61%
Notes to Schedule:
Change in benefit terms: none
Changes in Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
*Measurement period 2013-14 (fiscal year 2014-15) was the first year of implementation.
*Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available.
-90- 191 February 3, 2020, City Council Meeting Page No. 184 City of La Verne Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years* For the Year Ended June 30, 2019
Fiscal Year 2017-18 2018-19 Measurement Period 2016-17 2017-18
Total OPEB Liability Service cost $ 321,891 $ 331,548 Interest 617,221 643,684 Benefit payments (513,203) (570,093) Net change in total OPEB liability 425,909 405,139 Total OPEB liability - beginning 9,430,421 9,856,330 Total OPEB liability - ending (a) 9,856,330 10,261,469
Plan Fiduciary Net Position Contributions – employer 752,774 781,889 Net investment income 270,382 204,975 Benefit payments (513,203) (570,093) Administrative expense (23,642) (8,850) Net change in plan fiduciary net position 486,311 407,921 Plan fiduciary net position - beginning 2,358,658 2,844,969 Plan fiduciary net position - ending (b) 2,844,969 3,252,890
Net OPEB liability - ending (a) - (b) $ 7,011,361 $ 7,008,579
Plan fiduciary net position as a percentage of the total OPEB liability 28.9% 31.7%
Covered-employee payroll $ 13,805,870 $ 13,193,765
Net OPEB liability as a percentage of covered-employee payroll 50.8% 53.1%
Notes to Schedule:
Changes in assumptions: none
*Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available.
Fiscal Year 2017-18 was the first year of implementation.
-91- 192 February 3, 2020, City Council Meeting Page No. 185 City of La Verne Schedule of OPEB Contributions – Last 10 Years* For the Year Ended June 30, 2019
Fiscal Year 2017-18 2018-19
Actuarially Determined Contribution (ADC)$ 614,590 $ 809,488 Contributions in relation to the ADC (781,889) (1,016,879) Contribution deficiency (excess)$ (167,299) $ (207,391)
Covered-employee payroll$ 13,193,765 $ 13,220,866
Contributions as a percentage of covered-employee payroll 5.9% 7.7%
Notes to Schedule:
Actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2019 were from the June 30, 2017 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal Amortization Methodology Straight-line amortization. For assumption changes and experience gains/losses: Average Future Working Lifetime averages over all actives and retirees (retirees are assumed to have no future working years). For asset gains and losses: 5 years. Asset Valuation Method Market value Inflation 2.75% Payroll Growth 3.00% per annum, in aggregate Investment Rate of Return 6.50% per annum Healthcare Trend Rates 7.50% and Medicare rate of 6.50%, decreasing to an ultimate rate of 4% in 2076 and later years Retirement Age The probabilities of retirement are based on the 2014 CalPERS Experience Study for the period from 1997 to 2015. Mortality Post-retirement mortality projected fully generational with Society of Actuaries Scale MP-2017
* Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available.
Fiscal Year 2017-18 was the first year of implementation.
-92- 193 February 3, 2020, City Council Meeting Page No. 186
OTHER SUPPLEMENTARY INFORMATION
194 February 3, 2020, City Council Meeting Page No. 187 City of La Verne Page 1 of 2 Schedule of Revenues – Budget and Actual General Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Actual Final Budget Actual Property taxes: Current year secured$ 4,300,220 $ 4,460,620 $ 5,013,023 $ 552,403 $ 5,030,717 Current year unsecured 200,000 200,000 176,731 (23,269) 30,917 Property taxes in lieu of VLF 3,357,000 3,517,000 3,536,886 19,886 3,281,759 Passthrough distribution 525,300 525,300 525,260 (40) - Residual balance 2,661,000 2,661,000 2,660,940 (60) - Prior year secured (12,900) (12,900) (33,029) (20,129) (13,709) Prior year unsecured 5,000 5,000 (27,794) (32,794) 5,562 Aircraft tax 67,000 67,000 51,804 (15,196) 53,982 Penalties & interest 23,000 23,000 18,362 (4,638) 14,991 Supplemental tax roll 100,000 100,000 182,537 82,537 159,573 Real property transfer tax 144,280 144,280 162,442 18,162 144,371 Other property tax 80,000 80,000 1,542 (78,458) 2,554,580 Total property taxes 11,449,900 11,770,300 12,268,704 498,404 11,262,743
Other taxes: Sales and use tax 4,456,000 4,614,600 4,610,252 (4,348) 4,409,369 Utility user tax 2,850,000 2,850,000 2,887,985 37,985 3,028,260 Franchise tax 540,000 540,000 659,329 119,329 607,168 Business license tax 470,000 470,000 457,202 (12,798) 461,671 Tobacco retail license 2,740 2,740 6,452 3,712 7,540 Sales tax in-lieu fee - 45,000 48,000 3,000 30,000 Total other taxes 8,318,740 8,522,340 8,669,220 146,880 8,544,008
License and permits: Building permits 1,056,000 881,000 1,049,440 168,440 1,735,650 Other permits 273,720 270,980 288,448 17,468 291,069 Total licenses and permits 1,329,720 1,151,980 1,337,888 185,908 2,026,719
Intergovernmental: Homeowner's exemption tax 30,500 30,500 27,330 (3,170) 29,470 P.O.S.T. 8,100 8,100 13,294 5,194 11,005 State mandate cost reimbursement 1,786 Ground emergency medical response 12,000 24,000 13,000 (11,000) - Federal & state grants - - - - 63,521 Prop A funds exchange 195,000 195,000 203,500 8,500 30,000 Other intergovernmental 17,900 5,900 35,809 29,909 198,000 Total intergovernmental 263,500 263,500 292,933 29,433 333,782
-93- 195 February 3, 2020, City Council Meeting Page No. 188 City of La Verne Page 2 of 2 Schedule of Revenues – Budget and Actual General Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Actual Final Budget Actual Charges for services: Swimming pool fees$ - -$ -$ $ - $ 187,880 Recreation fees & charges 260,000 735,900 710,819 (25,081) 480,057 Recreation excursions - - - - 46,226 Refuse service fees 2,708,000 2,708,000 2,544,437 (163,563) 2,866,933 Planning fees - - - - 275,198 Inspection fees - - - - 25,305 Work for others - - - - 1,636,440 Plan check fees - - - - 33,155 Paramedic service fees 1,555,000 1,555,000 1,570,439 15,439 1,600,844 Map & copy sales - - - - 15,620 Other fees & charges 711,000 1,100,100 1,184,625 84,525 344,248 Wildland fire services 248,000 1,053,000 902,944 (150,056) - Police special duty 130,000 184,000 187,822 3,822 - Total charges for services 5,612,000 7,336,000 7,101,086 (234,914) 7,511,906
Fines and forfeitures: Other penalties 25,000 25,000 15,650 (9,350) 11,481 Total fines and forfeitures 25,000 25,000 15,650 (9,350) 11,481
Investment income 145,000 145,000 195,161 50,161 139,590 Unrealized gain (loss) on investments 150,665 150,665 150,665 - (25,442) Total investment income, net 295,665 295,665 345,826 50,161 114,148
Rents 198,600 248,600 268,363 19,763 490,104
Miscellaneous: Sale of property - - - - 22,781 Other revenues 148,260 243,400 173,442 (69,958) 153,529 Contributions/donations 809,374 809,374 809,374 - - Total miscellaneous revenues 957,634 1,052,774 982,816 (69,958) 176,310
Total revenues $ 28,450,758 $ 30,666,159 $ 31,282,486 $ 616,327 $ 30,471,201
-94- 196 February 3, 2020, City Council Meeting Page No. 189 City of La Verne Schedule of Expenditures – Budget and Actual General Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Actual Final Budget Actual General government: City council $ 99,692 $ 80,692 $ 78,358 $ 2,334 $ 132,558 City clerk 94,807 170,857 122,848 48,009 151,452 City manager administration 658,910 734,046 810,835 (76,789) 538,823 Finance 487,387 532,345 521,608 10,737 498,856 Information services 692,985 703,098 773,468 (70,370) 704,841 Non-departmental 347,200 369,000 358,595 10,405 139,544 Legal services 100,000 190,000 206,869 (16,869) 379,107 Total general government 2,480,981 2,780,038 2,872,581 (92,543) 2,545,181
Public safety: Fire department 9,404,066 9,701,060 9,610,355 90,705 9,246,429 Police department 11,553,814 11,896,166 11,823,297 72,869 10,816,336 Total public safety 20,957,880 21,597,226 21,433,652 163,574 20,062,765
Community development: Planning & administration 1,225,569 1,276,990 1,476,869 (199,879) 1,010,614 Code enforcement/building inspection 473,585 428,118 578,293 (150,175) 737,426 Total community development 1,699,154 1,705,108 2,055,162 (350,054) 1,748,040
Public works: City buildings administration & maintenance 397,559 397,879 396,908 971 346,009 Street administration 542,020 542,500 553,768 (11,268) 593,851 Refuse & recycling 2,377,599 2,377,599 2,363,250 14,349 2,329,094 Street maintenance 1,251,609 1,229,609 1,017,564 212,045 850,025 Traffic & lighting 617,703 788,010 733,347 54,663 832,657 Graffitti removal 31,881 31,881 31,793 88 49,896 Parks administration 238,806 239,286 230,451 8,835 215,685 Parks facility maintenance 1,195,916 1,134,675 1,074,973 59,702 1,132,524 Tree maintenance 446,044 404,395 381,453 22,942 413,573 Total public works 7,099,137 7,145,834 6,783,507 362,327 6,763,314
Community services: Recreation & community services 863,112 901,818 867,293 34,525 598,129 Recreation programs - - - - 260,896 Swimming pool programs 344,807 355,880 364,728 (8,848) 353,186 Community service rentals 339,923 345,923 360,915 (14,992) 337,821 Special events 34,402 34,402 37,626 (3,224) 40,781 Total community services 1,582,244 1,638,023 1,630,562 7,461 1,590,813
Total expenditures $ 33,819,396 $ 34,866,229 $ 34,775,464 $ 90,765 $ 32,710,113
-95- 197 February 3, 2020, City Council Meeting Page No. 190 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Capital Improvement Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Intergovernmental $ - -$ $ - $ - $ 10,252 Charges for services - - 4,442 4,442 - Investment income 32,000 32,000 - (32,000) 23,491 Other - - - - 25,950 Donations and contributions - - 1,695,868 1,695,868 -
Total revenues 32,000 32,000 1,700,310 1,668,310 59,693
Expenditures: Capital projects 2,411,847 3,778,785 3,446,338 332,447 1,239,428
Total expenditures 2,411,847 3,778,785 3,446,338 332,447 1,239,428
Excess (deficiency) of revenues over (under) expenditures (2,379,847) (3,746,785) (1,746,028) 2,000,757 (1,179,735)
Other Financing Sources: Transfers in 1,478,000 1,478,000 1,520,948 42,948 40,000
Total other financing sources 1,478,000 1,478,000 1,520,948 42,948 40,000
Net change in fund balance (901,847) (2,268,785) (225,080) 2,043,705 (1,139,735)
Fund balance, beginning of year 1,777,611 1,777,611 1,777,611 - 2,917,346
Fund balance, end of year $ 875,764 $ (491,174) $ 1,552,531 $ 2,043,705 $ 1,777,611
-96- 198 February 3, 2020, City Council Meeting Page No. 191
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199 February 3, 2020, City Council Meeting Page No. 192 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Loan Repayment Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues $ - -$ $ - $ - $ -
Expenditures: Current: General government - 3,285,701 3,285,701 - - Public safety - 33,218,652 33,218,652 - - Community development - 2,875,602 2,875,602 - - Public works - 3,668,337 3,668,337 - - Community services - 1,201,229 1,201,229 - - Debt service: Principal 500,000 1,351,330 1,351,332 (2) - Interest 25,000 1,547,557 1,547,555 2 -
Total expenditures 525,000 47,148,408 47,148,408 - -
Excess (deficiency) of revenues over (under) expenditures (525,000) (47,148,408) (47,148,408) - -
Other Financing Sources (Uses): Proceeds from issuance of debt - 49,050,134 49,050,134 - - Transfers in 8,035,487 8,035,487 2,866,999 (5,168,488) - Transfers out (4,800,612) (4,800,612) (4,800,612) - -
Total other financing sources (uses) 3,234,875 52,285,009 47,116,521 (5,168,488) -
Net change in fund balance 2,709,875 5,136,601 (31,887) (5,168,488) -
Fund balance, beginning of year 31,887 31,887 31,887 - 31,887
Fund balance, end of year $ 2,741,762 $ 5,168,488 $ - $ (5,168,488) $ 31,887
-97- 200 February 3, 2020, City Council Meeting Page No. 193 City of La Verne Combining Balance Sheet Nonmajor Governmental Funds June 30, 2019 (with comparative data for June 30, 2018)
Special Capital Revenue Project Totals Funds Funds 2019 2018 Asse ts Cash and investments$ 15,233,976 $ 6,211,736 $ 21,445,712 $ 18,374,677 Cash and investments with fiscal agents 3,430,949 - 3,430,949 3,387,180 Interest receivable 65,679 12,975 78,654 68,061 Accounts receivable 76,872 - 76,872 73,511 Taxes receivable - - - - Special assessments receivable 87,482 - 87,482 99,330 Due from other governments 275,433 - 275,433 184,532 Inventory of materials and supplies, cost - - - 34,322
Total assets $ 19,170,391 $ 6,224,711 $ 25,395,102 $ 22,221,613
Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 161,137 $ 306,776 $ 467,913 $ 805,738 Accrued expenses 21,845 - 21,845 24,450 Deposits payable 11,432 - 11,432 - Due to other funds 152,469 - 152,469 85,794
Total liabilities 346,883 306,776 653,659 915,982
Deferred Inflows of Resources: Unavailable revenue 14,126 - 14,126 22,231
Fund Balances: Restricted for: Public safety 7,422,374 - 7,422,374 5,008,180 Community and development 5,040,211 - 5,040,211 5,247,548 Public works 4,833,858 1,348,799 6,182,657 5,067,375 Community services 1,552,077 1,025,153 2,577,230 2,265,643 Debt service - - - 31,887 Assigned to: Capital Projects - 3,543,983 3,543,983 3,662,767 Unassigned (39,138) - (39,138) -
Total fund balances 18,809,382 5,917,935 24,727,317 21,283,400
Total liabilities and fund balances $ 19,170,391 $ 6,224,711 $ 25,395,102 $ 22,221,613
-98- 201 February 3, 2020, City Council Meeting Page No. 194 City of La Verne Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Special Capital Revenue Project Totals Funds Funds 2019 2018 Revenues: Property Taxes $ 21,623 $ - $ 21,623 $ - Other taxes 4,258,989 - 4,258,989 2,443,543 Licenses and permits 18,465 - 18,465 17,956 Intergovernmental 413,411 - 413,411 1,374,760 Charges for services 279,815 199,749 479,564 1,078,158 Fines and forfeitures 3,516,344 - 3,516,344 417,104 Special assessments 1,922,726 - 1,922,726 1,833,640 Investment income 682,423 59,272 741,695 594,789 Net increase (decrease) in the fair value of investments 260,294 48,060 308,354 (205,710) Rents 1,925,224 - 1,925,224 1,906,122 Miscellaneous 21,599 9,399 30,998 101,420 Donations and contributions - 16,950 16,950 -
Total revenues 13,320,913 333,430 13,654,343 9,561,782
Expenditures: Current: Public safety 1,184,032 - 1,184,032 1,412,335 Community development 1,539,636 - 1,539,636 1,717,226 Public works 26,822 - 26,822 72,939 Community services 1,414,064 - 1,414,064 1,296,549 Capital projects 1,288,924 407,373 1,696,297 1,834,054 Debt service: Principal 405,000 - 405,000 375,000 Interest 340,569 - 340,569 368,844
Total expenditures 6,199,047 407,373 6,606,420 7,076,947
Excess of revenues over expenditures 7,121,866 (73,943) 7,047,923 2,484,835
Other Financing Sources (Uses): Transfers in 176,949 - 176,949 205,950 Transfers out (3,212,068) (537,000) (3,749,068) (2,125,120)
Total other financing sources (uses) (3,035,119) (537,000) (3,572,119) (1,919,170)
Net change in fund balances 4,086,747 (610,943) 3,475,804 565,665
Fund balances, beginning of year 14,722,635 6,528,878 21,251,513 20,717,735
Fund balances, end of year $ 18,809,382 $ 5,917,935 $ 24,727,317 $ 21,283,400
-99- 202 February 3, 2020, City Council Meeting Page No. 195
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues and the related expenditures which are legally required to be accounted for in a separate fund. Funds included are:
Traffic and Bicycle Safety Fund
To account for the revenues and expenditures of Vehicle Code court fines, licenses and grant money expended for traffic related costs and the promotion of bicycle safety.
Mobile Home Park Fund
To account for revenues and expenditures related to the operation of two mobile home parks that are restricted under state law based on household incomes and/or age limitations.
Community Development Block Grant Fund
To account for the revenues and expenditures of approved Federal Housing and Community Development Act projects.
State & County Gas Tax Fund
To account for the revenues and expenditures of the City’s proportionate share of gas tax monies collected by the State of California and disbursement of monies received from Los Angeles County as aid to the City which are used for street construction and maintenance.
Police Narcotics Confiscation Fund
To account for monies confiscated in police narcotic raids that are restricted for public safety expenditures.
Local Transit Assistance Fund
To account for revenues and expenditures received under Propositions A & C and Measure M & R approved under the Local Transit Assistance Act regulations.
Mobile Source Air Pollution Fund
To account for smog fees transmitted to the City from other governmental agencies to be expended for the mitigation of local air pollution problems.
Public Safety Fund
To account for Proposition 172 half-cent sales tax transmitted to the City from other governmental agencies and fees charged for fire equipment and facilities to be expended for public safety.
-100- 203 February 3, 2020, City Council Meeting Page No. 196
SPECIAL REVENUE FUNDS, (CONTINUED)
Community Facilities District 90-1 Fund
To account for the financial transactions associated with the operation and maintenance of this special tax district.
Downtown Business Improvement Districts Fund
To account for business license fees used for the promotion of businesses in the downtown business district.
Maintenance Assessment District Fund
To account for the revenues and expenditures restricted for the lighting and landscape maintenance program. Property owners are assessed their share of the cost for lighting and maintaining parkways and medians.
Affordable Housing Fund
To account for the revenues and expenditures restricted for the affordable housing program.
PEG Fund
To account for revenues received from the City’s Cable TV franchise companies pursuant to the franchise agreements. No budget has been adopted for this fund.
Downtown Parking In-Lieu
To account for fees collected for the Parking Mitigation Development Impact Fee and the Old Town La Verne Merchant Parking Permit Fee.
Miscellaneous Grants – To account for revenues received under various grant programs. The exact number nature and amount of grants included varies from year to year.
EIFD – To account for the activities of the La Verne Enhanced Infrastructure Financing District. The District is a blended component unit of the City and receives tax increment revenues allocated to the District from City Taxing areas. The District is governed by a 5 member Board of Directors appointed by the City Council consisting of 3 elected and 2 public members.
-101- 204 February 3, 2020, City Council Meeting Page No. 197 City of La Verne Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2019 (with comparative data for June 30, 2018)
Special Revenue Funds Traffic Mobile Community and Bicycle Home Development State & County Safety Park Block Grant Gasoline Tax Asse ts Cash and investments$ - $ 268,968 $ - $ 2,237,399 Cash and investments with fiscal agents - 3,430,949 - - Interest receivable - - - 11,904 Accounts receivable 19,248 - - - Special assessments receivable - - - - Due from other governments 46,393 - 103,500 108,849 Inventory of materials and supplies, cost - - - -
Total assets $ 65,641 $ 3,699,917 $ 103,500 $ 2,358,152
Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 21,093 $ 46,942 $ 1,032 $ - Accrued expenses 8,741 6,623 - - Deposits payable - 11,432 - - Due to other funds 21,592 - 102,468 -
Total liabilities 51,426 64,997 103,500 -
Deferred Inflows of Resources: Unavailable revenue - - - - Total deferred inflows of resources - - - -
Fund balances: Restricted for: Public safety 14,215 - - - Community development - 3,634,920 - - Public works - - - 2,358,152 Community services - - - - Unassigned - - - - Total fund balances 14,215 3,634,920 - 2,358,152 Total liabilities, deferred inflows of resources and fund balances $ 65,641 $ 3,699,917 $ 103,500 $ 2,358,152
-102- 205 February 3, 2020, City Council Meeting Page No. 198
Special Revenue Funds Police Local Mobile Community Downtown Narcotics Transit Source Air Public Facilities Business Confiscation Assistance Pollution Safety District 90-1 Improv. District
$ 4,399,660 $ 2,308,716 $ 476,204 $ 2,519,007 $ 809,121 $ 164,146 ------12,931 10,397 2,228 12,887 4,936 786 21,599 928 ------69,505 11,229 - - 1,903 11,184 ------
$ 4,434,190 $ 2,321,944 $ 489,616 $ 2,601,399 $ 825,286 $ 164,932
$ - $ 44,794 $ 1,649 $ 155 $ 219 $ 22 - 2,736 ------
- 47,530 1,649 155 219 22
------
4,434,190 - - 2,601,244 372,725 - - - 243,983 - - - - 1,137,207 243,984 - 452,342 - - 1,137,207 - - - 164,910 ------4,434,190 2,274,414 487,967 2,601,244 825,067 164,910
$ 4,434,190 $ 2,321,944 $ 489,616 $ 2,601,399 $ 825,286 $ 164,932 (continued)
-103- 206 February 3, 2020, City Council Meeting Page No. 199 City of La Verne Combining Balance Sheet Nonmajor Special Revenue Funds (continued) June 30, 2019 (with comparative data for June 30, 2018)
Special Revenue Funds Maintenance Assessment Affordable PEG Downtown Districts Housing Fund Parking In-Lieu Assets Cash and investments $ 666,623 $ 1,155,826 $ 103,045 $ 111,820 Cash and investments with fiscal agents - - - - Interest receivable 3,123 5,482 459 524 Accounts receivable - - 20,971 - Special assessments receivable 6,748 - - - Due from other governments - - - - Inventory of materials and supplies, cost - - - -
Total assets $ 676,494 $ 1,161,308 $ 124,475 $ 112,344
Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 33,238 $ - -$ $ - Accrued expenses 1,083 - - - Deposits payable - - - - Due to other funds - - - -
Total liabilities 34,321 - - -
Deferred Inflows of Resources: Unavailable revenue - - - - Total deferred inflows of resources - - - -
Fund balances: Restricted for: Public safety - - - - Community and development - 1,161,308 - - Public works 642,173 - - - Community services - - 124,475 112,344 Unassigned - - - - Total fund balances 642,173 1,161,308 124,475 112,344 Total liabilities, deferred inflows of resources and fund balances $ 676,494 $ 1,161,308 $ 124,475 $ 112,344
-104- 207 February 3, 2020, City Council Meeting Page No. 200
Special Revenue Funds
Miscellaneous Totals Grants EIFD 2019 2018
$ - $ 13,441 $ 15,233,976 $ 11,826,696 - - 3,430,949 3,387,180 - 22 65,679 54,449 14,126 - 76,872 73,511 - - 87,482 99,330 3,604 - 275,433 184,532 - - - 34,322
$ 17,730 $ 13,463 $ 19,170,391 $ 15,660,020
$ 11,671 $ 322 $ 161,137 $ 804,910 2,662 - 21,845 24,450 - - 11,432 - 28,409 - 152,469 85,794
42,742 322 346,883 915,154
14,126 - 14,126 22,231 14,126 - 14,126 22,231
- - 7,422,374 5,008,180 - - 5,040,211 5,247,548 - - 4,833,858 2,201,264 - 13,141 1,552,077 2,265,643 (39,138) - (39,138) - (39,138) 13 ,141 18,809,382 14,722,635
$ 17,730 $ 13,463 $ 19,170,391 $ 15,660,020 (concluded)
-105- 208 February 3, 2020, City Council Meeting Page No. 201 City of La Verne Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Special Revenue Funds Traffic Mobile Community and Home Development State & County Bicycle Safety Park Block Grant Gasoline Tax Revenues: Property taxes $ - $ - -$ - Other taxes - - - 1,740,131 Licenses and permits - - - - Intergovernmental - - 116,018 - Charges for services 25,571 - - - Fines and forfeitures 360,399 - - - Special assessments - - - - Investment income - 412,740 - 46,364 Net increase (decrease) in the fair value of investments - 19,437 - 44,094 Rents - 1,925,224 - - Other - - - -
Total revenues 385,970 2,357,401 116,018 1,830,589
Expenditures: Current: Public safety 550,008 - - - Community development - 1,319,747 116,076 - Public works - - - 6,000 Community services - - - - Capital projects - - - 452,727 Debt service: Principal - 405,000 - - Interest - 340,569 - -
Total expenditures 550,008 2,065,316 116,076 458,727
Excess (deficiency) of revenues over (under) expenditures (164,038) 292,085 (58) 1,371,862
Other Financing Sources (Uses): Transfers in 164,100 - - - Transfers out - (350,000) - (383,845)
Total other financing sources (uses) 164,100 (350,000) - (383,845)
Net change in fund balances 62 (57,915) (58) 988,017
Fund balances, beginning of year 14,153 3,692,835 58 1,370,135
Fund balances, end of year $ 14,215 $ 3,634,920 $ - $ 2,358,152
-106- 209 February 3, 2020, City Council Meeting Page No. 202
Special Revenue Funds Police Local Mobile Community Downtown Narcotics Transit Source Air Public Facilities Business Confiscation Assistance Pollution Safety District 90-1 Improv. District
$ - $ - -$ -$ -$ $ - - 2,099,647 - 401,339 ------18,465 - 24,640 43,140 172,725 - - - - - 49,691 - 98,620 3,155,945 ------152,393 1,422,150 - 49,789 45,302 10,003 58,525 14,781 3,426
47,901 38,544 8,249 47,108 16,495 2,856 ------21,599 - - - - -
3,275,234 2,208,133 61,392 881,781 1,453,426 123,367
383,238 - - 189,645 - - - - 11,884 - 1,673 83,919 - 20,822 - - - - - 1,009,568 - - - - - 817,811 - - - -
------
383,238 1,848,201 11,884 189,645 1,673 83,919
2,891,996 359,932 49,508 692,136 1,451,753 39,448
------(376,000) - - (794,000) (1,223,000) -
(376,000) - - (794,000) (1,223,000) -
2,515,996 359,932 49,508 (101,864) 228,753 39,448
1,918,194 1,914,482 438,459 2,703,108 596,314 125,462
$ 4,434,190 $ 2,274,414 $ 487,967 $ 2,601,244 $ 825,067 $ 164,910 (continued)
-107- 210 February 3, 2020, City Council Meeting Page No. 203 City of La Verne Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds (continued) For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Special Revenue Funds Maintenance Assessment Affordable PEG Downtown District Housing Fund Parking In-Lieu Revenues: Property taxes -$ -$ -$ -$ Other taxes - - - - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - 91,458 14,475 Fines and forfeitures - - - - Special assessments 348,183 - - - Investment income 12,525 24,810 1,652 2,255 Net increase (decrease) in the fair value of investments 11,580 20,302 1,666 1,983 Rents - - - - Other - - - -
Total revenues 372,288 45,112 94,776 18,713
Expenditures: Current: Public safety - - - - Community development - - - - Public works - - - - Community services 382,873 - - - Capital projects - - - - Debt service: Principal - - - - Interest - - - -
Total expenditures 382,873 - - -
Excess (deficiency) of revenues over (under) expenditures (10,585) 45,112 94,776 18,713
Other Financing Sources (Uses): Transfers in 12,849 - - - Transfers out (10,000) - (60,000) -
Total other financing sources (uses) 2,849 - (60,000) -
Net change in fund balances (7,736) 45,112 34,776 18,713
Fund balances, beginning of year 649,909 1,116,196 89,699 93,631
Fund balances, end of year $ 642,173 $ 1,161,308 $ 124,475 $ 112,344
-108- 211 February 3, 2020, City Council Meeting Page No. 204
Special Revenue Funds
Miscellaneous Totals Grants EIFD 2019 2018
$ - $ 21,623 $ 21,623 -$ - 17,872 4,258,989 3,173,813 - - 18,465 17,956 56,888 - 413,411 644,490 - - 279,815 593,906 - - 3,516,344 417,104 - - 1,922,726 1,833,640 178 73 682,423 529,223
- 79 260,294 (165,065) - - 1,925,224 1,906,122 - - 21,599 58,969
57,066 39,647 13,320,913 9,010,158
61,141 - 1,184,032 1,412,335 1,454 4,883 1,539,636 1,752,492 - - 26,822 72,939 - 21,623 1,414,064 1,261,283 18,386 - 1,288,924 1,443,674
- - 405,000 375,000 - - 340,569 368,844
80,981 26,506 6,199,047 6,686,567
(23,915) 13,141 7,121,866 2,323,591
- - 176,949 205,950 (15,223) - (3,212,068) (2,125,120)
(15,223) - (3,035,119) (1,919,170)
(39,138) 13,141 4,086,747 404,421
- - 14,722,635 14,318,214
$ (39,138) $ 13,141 $ 18,809,382 $ 14,722,635 (concluded)
-109- 212 February 3, 2020, City Council Meeting Page No. 205
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213 February 3, 2020, City Council Meeting Page No. 206 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Traffic and Bicycle Safety Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 39,000 $ 39,000 $ 25,571 $ (13,429) $ 34,789 Fines and forfeitures 340,000 340,000 360,399 20,399 409,176
Total revenues 379,000 379,000 385,970 6,970 443,965
Expenditures: Current: Public safety 563,330 563,330 550,008 13,322 645,096
Total expenditures 563,330 563,330 550,008 13,322 645,096
Excess (deficiency) of revenues over (under) expenditures (184,330) (184,330) (164,038) 20,292 (201,131)
Other Financing Sources: Transfers in 184,000 184,000 164,100 (19,900) 204,450
Total other financing sources 184,000 184,000 164,100 (19,900) 204,450
Net change in fund balance (330) (330) 62 392 3,319
Fund balance, beginning of year 14,153 14,153 14,153 - 10,834
Fund balance, end of year $ 13,823 $ 13,823 $ 14,215 $ 392 $ 14,153
-110- 214 February 3, 2020, City Council Meeting Page No. 207 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Mobile Home Park Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Investment income$ - $ - $ 412,740 $ 412,740 $ 377,113 Net increase (decrease) in the fair value of investments - - 19,437 19,437 - Rents 1,871,414 1,871,414 1,925,224 53,810 1,906,122
Total revenues 1,871,414 1,871,414 2,357,401 485,987 2,283,235
Expenditures: Current: Community development 1,139,084 1,139,084 1,319,747 (180,663) 1,320,766 Debt service: Principal 350,050 405,000 405,000 - 375,000 Interest 489,084 340,569 340,569 - 368,844
Total expenditures 1,978,218 1,884,653 2,065,316 (180,663) 2,064,610
Excess (deficiency) of revenues over (under) expenditures (106,804) (13,239) 292,085 305,324 218,625
Other Financing Uses: Transfers out - (350,000) (350,000) - (100,000)
Total other financing sources (uses) - (350,000) (350,000) - (100,000)
Net change in fund balance (106,804) (363,239) (57,915) 305,324 118,625
Fund balance, beginning of year 3,692,835 3,692,835 3,692,835 - 3,574,210
Fund balance, end of year$ 3,586,031 $ 3,329,596 $ 3,634,920 $ 305,324 $ 3,692,835
-111- 215 February 3, 2020, City Council Meeting Page No. 208 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Community Development Block Grant Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Intergovernmental$ 77,050 77,050$ 116,018 $ 38,968 $ 363,322
Total revenues 77,050 77,050 116,018 38,968 363,322
Expenditures: Current: Community development 117,850 117,850 116,076 1,774 363,275
Total expenditures 117,850 117,850 116,076 1,774 363,275
Excess of revenues over expenditures (40,800) (40,800) (58) 40,742 47
Net change in fund balance (40,800) (40,800) (58) 40,742 47
Fund balance, beginning of year 58 58 58 - 11
Fund balance, end of year$ (40,742) $ (40,742) $ - $ 40,742 $ 58
-112- 216 February 3, 2020, City Council Meeting Page No. 209 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual State & County Gas Tax Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Other taxes$ 1,392,389 1,392,389$ 1,740,131 $ 347,742 $ 962,368 Investment income 20,000 20,000 46,364 26,364 23,173 Net increase (decrease) in the fair value of investments - - 44,094 44,094 (22,839)
Total revenues 1,412,389 1,412,389 1,830,589 418,200 962,702
Expenditures: Current: Public works 6,000 6,000 6,000 - 6,000 Capital projects 1,217,190 1,217,190 452,727 764,463 1,093,674
Total expenditures 1,223,190 1,223,190 458,727 764,463 1,099,674
Excess (deficiency) of revenues over (under) expenditures 189,199 189,199 1,371,862 1,182,663 (136,972)
Other Financing Uses: Transfers out (365,500) (393,225) (383,845) 9,380 (357,206)
Total other financing uses (365,500) (393,225) (383,845) 9,380 (357,206)
Net change in fund balance (176,301) (204,026) 988,017 1,192,043 (494,178)
Fund balance, beginning of year 1,370,135 1,370,135 1,370,135 - 1,864,313
Fund balance, end of year $ 1,193,834 $ 1,166,109 $ 2,358,152 $ 1,192,043 $ 1,370,135
-113- 217 February 3, 2020, City Council Meeting Page No. 210 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Police Narcotics Confiscation Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Fines and forfeitures$ 7,000 $ 7,000 $ 3,155,945 $ 3,148,945 $ 7,928 Investment income 20,000 20,000 49,789 29,789 32,209 Net increase (decrease) in the fair value of investments - - 47,901 47,901 (32,827) Other - - 21,599 21,599 21,256
Total revenues 27,000 27,000 3,275,234 3,248,234 28,566
Expenditures: Current: Public safety 536,161 536,161 383,238 152,923 625,274
Total expenditures 536,161 536,161 383,238 152,923 625,274
Excess (deficiency) of revenues over (under) expenditures (509,161) (509,161) 2,891,996 3,401,157 (596,708)
Other financing sources: Transfers out (376,000) (376,000) (376,000) - -
Total other financing sources (376,000) (376,000) (376,000) - -
Net change in fund balance (885,161) (885,161) 2,515,996 3,401,157 (596,708)
Fund balance, beginning of year 1,918,194 1,918,194 1,918,194 - 2,514,902
Fund balance, end of year$ 1,033,033 $ 1,033,033 $ 4,434,190 $ 3,401,157 $ 1,918,194
-114- 218 February 3, 2020, City Council Meeting Page No. 211 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Local Transit Assistance Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Other taxes $ 2,027,795 $ 2,027,795 $ 2,099,647 $ 71,852 $ 1,866,021 Intergovernmental - - 24,640 24,640 - Investment income 16,600 16,600 45,302 28,702 20,197 Net increase (decrease) in the fair value of investments - - 38,544 38,544 (20,391)
Total revenues 2,044,395 2,044,395 2,208,133 163,738 1,865,827
Expenditures: Current: Public works 70,536 70,536 20,822 49,714 66,939 Community services 1,306,695 1,306,695 1,009,568 297,127 933,878 Capital projects 848,795 848,795 817,811 30,984 350,000
Total expenditures 2,226,026 2,226,026 1,848,201 377,825 1,350,817
Excess of revenues over expenditures (181,631) (181,631) 359,932 541,563 180,325
Net change in fund balance (181,631) (181,631) 359,932 541,563 515,010
Fund balance, beginning of year 1,914,482 1,914,482 1,914,482 - 1,399,472
Fund balance, end of year $ 1,732,851 $ 1,732,851 $ 2,274,414 $ 541,563 $ 1,914,482
-115- 219 February 3, 2020, City Council Meeting Page No. 212 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Mobile Source Air Pollution Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Intergovernmental$ 42,000 $ 42,000 $ 43,140 $ 1,140 $ 42,439 Investment income 4,200 4,200 10,003 5,803 5,545 Net increase (decrease) in the fair value of investments - - 8,249 8,249 (5,910)
Total revenues 46,200 46,200 61,392 15,192 42,074
Expenditures: Current: Community development 16,900 16,900 11,884 5,016 10,775
Total expenditures 16,900 16,900 11,884 5,016 10,775
Excess of revenues over expenditures 29,300 29,300 49,508 20,208 31,299
Net change in fund balance 29,300 29,300 49,508 20,208 31,299
Fund balance, beginning of year 438,459 438,459 438,459 - 407,160
Fund balance, end of year$ 467,759 $ 467,759 $ 487,967 $ 20,208 $ 438,459
-116- 220 February 3, 2020, City Council Meeting Page No. 213 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Public Safety Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Other taxes$ 367,000 $ 367,000 $ 401,339 $ 34,339 $ 383,137 Intergovernmental 170,000 170,000 172,725 2,725 238,729 Charges for services 45,000 45,000 49,691 4,691 243,570 Special assessments 93,000 93,000 152,393 59,393 117,005 Investment income 31,100 31,100 58,525 27,425 35,232 Net increase (decrease) in the fair value of investments - - 47,108 47,108 (39,757)
Total revenues 706,100 706,100 881,781 175,681 594,779
Expenditures: Current: Public safety 236,919 236,919 189,645 47,274 141,964
Total expenditures 236,919 236,919 189,645 47,274 141,964
Excess (deficiency) of revenues over (under) expenditures 469,181 469,181 692,136 222,955 452,815
Other Financing Uses: Transfers out (794,000) (794,000) (794,000) - (513,914)
Total other financing uses (794,000) (794,000) (794,000) - (513,914)
Net change in fund balance (324,819) (324,819) (101,864) 222,955 (61,099)
Fund balance, beginning of year 2,703,108 2,703,108 2,703,108 - 2,764,207
Fund balance, end of year $ 2,378,289 $ 2,378,289 $ 2,601,244 $ 222,955 $ 2,703,108
-117- 221 February 3, 2020, City Council Meeting Page No. 214 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Community Facilities District 90-1 Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Special assessments $ 1,368,000 1,368,000$ 1,422,150 $ 54,150 $ 1,371,808 Investment Income 6,000 6,000 14,781 8,781 9,859 Net increase (decrease) in the fair value of investments - - 16,495 16,495 (15,467)
Total revenues 1,374,000 1,374,000 1,453,426 79,426 1,366,200
Expenditures Current: Community development - - 1,673 (1,673) - . Total expenditures - - 1,673 (1,673) -
Excess (deficiency) of revenues over (under) expenditures 1,374,000 1,374,000 1,451,753 77,753 1,366,200
Other Financing Uses: Transfers out (1,223,000) (1,223,000) (1,223,000) - (1,099,000)
Total other financing uses (1,223,000) (1,223,000) (1,223,000) - (1,099,000)
Net change in fund balance 151,000 151,000 228,753 77,753 267,200
Fund balance, beginning of year 596,314 596,314 596,314 - 329,114
Fund balance, end of year $ 747,314 $ 747,314 $ 825,067 $ 77,753 $ 596,314
-118- 222 February 3, 2020, City Council Meeting Page No. 215 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Downtown Business Improvement District Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Licenses and permits$ 16,000 $ 16,000 $ 18,465 $ 2,465 $ 17,956 Charges for services 100,000 100,000 98,620 (1,380) 54,070 Investment income 1,100 1,100 3,426 2,326 1,524 Net increase (decrease) in the fair value of investments - - 2,856 2,856 (1,597) Miscellaneous - - - - 145 . Total revenues 117,100 117,100 123,367 6,267 72,098
Expenditures: Current: Community development 117,800 117,800 83,919 33,881 57,676
Total expenditures 117,800 117,800 83,919 33,881 57,676
Excess of revenues over expenditures (700) (700) 39,448 40,148 (1,265)
Net change in fund balance (700) (700) 39,448 40,148 14,422
Fund balance, beginning of year 125,462 125,462 125,462 - 111,040
Fund balance, end of year$ 124,762 $ 124,762 $ 164,910 $ 40,148 $ 125,462
-119- 223 February 3, 2020, City Council Meeting Page No. 216 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Maintenance Assessment District Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Special assessments$ 344,000 $ 344,000 $ 348,183 $ 4,183 $ 344,827 Investment income 7,000 7,000 12,525 5,525 8,579 Net increase (decrease) in the fair value of investments - - 11,580 11,580 (9,173)
Total revenues 351,000 351,000 372,288 21,288 344,233
Expenditures: Current: Community services 459,630 459,630 382,873 76,757 326,534
Total expenditures 459,630 459,630 382,873 76,757 326,534
Excess (deficiency) of revenues over (under) expenditures (108,630) (108,630) (10,585) 98,045 17,699
Other Financing Sources (Uses): Transfers in - - 12,849 12,849 1,500 Transfers out (10,000) (10,000) (10,000) - -
Total other financing sources (uses) (10,000) (10,000) 2,849 12,849 1,500
Net change in fund balance (118,630) (118,630) (7,736) 110,894 19,199
Fund balance, beginning of year 649,909 649,909 649,909 - 630,710
Fund balance, end of year $ 531,279 $ 531,279 $ 642,173 $ 110,894 $ 649,909
-120- 224 February 3, 2020, City Council Meeting Page No. 217 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Affordable Housing Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services $ 10,000 $ 10,000 $ - $ (10,000) $ 171,661 Investment income 10,000 10,000 24,810 14,810 13,581 Net increase (decrease) in the fair value of investments - - 20,302 20,302 (14,515)
Total revenues 20,000 20,000 45,112 25,112 170,727
Net change in fund balance 20,000 20,000 45,112 25,112 170,727
Fund balance, beginning of year 1,116,196 1,116,196 1,116,196 - 945,469
Fund balance, end of year $ 1,136,196 $ 1,136,196 $ 1,161,308 $ 25,112 $ 1,116,196
-121- 225 February 3, 2020, City Council Meeting Page No. 218 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual PEG Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 68,000 $ 68,000 $ 91,458 $ 23,458 $ 85,918 Investment income 700 700 1,652 952 969 Net increase (decrease) in the fair value of investments - - 1,666 1,666 (1,255)
Total revenues 68,700 68,700 94,776 26,076 85,632
Expenditures: Current: Community services - - - - 871
Excess (deficiency) of revenues over (under) expenditures 68,700 68,700 94,776 26,076 84,761
Other Financing Uses: Transfers out (60,000) (60,000) (60,000) - (55,000)
Total other financing uses (60,000) (60,000) (60,000) - (55,000)
Net change in fund balance 8,700 8,700 34,776 26,076 29,761
Fund balance, beginning of year 89,699 89,699 89,699 - 59,938
Fund balance, end of year$ 98,399 $ 98,399 $ 124,475 $ 26,076 $ 89,699
-122- 226 February 3, 2020, City Council Meeting Page No. 219 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Downtown Parking In-Lieu Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 5,100 $ 5,100 $ 14,475 $ 9,375 $ 3,753 Investment income 900 900 2,255 1,355 1,242 Net increase (decrease) in the fair value of investments - - 1,983 1,983 (1,334)
Total revenues 6,000 6,000 18,713 12,713 3,661
Net change in fund balance 6,000 6,000 18,713 12,713 3,661
Fund balance, beginning of year 93,631 93,631 93,631 - 89,970
Fund balance, end of year $ 99,631 $ 99,631 $ 112,344 $ 12,713 $ 93,631
-123- 227 February 3, 2020, City Council Meeting Page No. 220 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Miscellaneous Grants Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Intergovernmental$ 370,000 $ 370,000 $ 56,888 $ (313,112) -$ Investment income - - 178 178 -
Total revenues 370,000 370,000 57,066 (312,934) -
Expenditures Current: Public safety 35,822 60,000 61,141 (1,141) - Community development 25,459 25,459 1,454 24,005 - Capital Projects 14,586 14,586 18,386 (3,800) -
Total expenditures 75,867 100,045 80,981 19,064 -
Excess (deficiency) of revenues over (under) expenditures 294,133 269,955 (23,915) (293,870) -
Other Financing Uses: Transfers out (24,178) (15,223) (15,223) - -
Total other financing uses (24,178) (15,223) (15,223) - -
Net change in fund balance 269,955 254,732 (39,138) (293,870) -
Fund balance, beginning of year - - - - -
Fund balance (deficit), end of year$ 269,955 $ 254,732 $ (39,138) $ (293,870) -$
-124- 228 February 3, 2020, City Council Meeting Page No. 221 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual EIFD Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Property taxes$ - -$ $ 21,623 $ 21,623 -$ Other taxes - 17,872 17,872 - Investment income - - 73 73 - Net increase (decrease) in the fair value of investments - - 79 79 -
Total revenues - - 39,647 39,647 -
Expenditures Current: Community development 13,000 34,623 4,883 29,740 - Community services - - 21,623 (21,623) -
Total expenditures 13,000 34,623 26,506 8,117 -
Excess (deficiency) of revenues over (under) expenditures (13,000) (34,623) 13,141 47,764 -
Other Financing Uses: Transfers out (13,000) (13,000) - 13,000 -
Total other financing uses (13,000) (13,000) - 13,000 -
Net change in fund balance (26,000) (47,623) 13,141 60,764 -
Fund balance, beginning of year - - - - -
Fund balance, end of year $ (26,000) $ (47,623) $ 13,141 $ 60,764 -$
-125- 229 February 3, 2020, City Council Meeting Page No. 222
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition or construction of major capital items not financed by proprietary funds and fiduciary funds. Funds included are:
ROW Management Fund
To account for revenues and expenditures in conjunction with rights of way and street maintenance.
I/S Technology Fund
To account for revenues and expenditures in conjunction with maintenance and replacement of information technology equipment.
Underground Utilities Fund
To account for developer fees used for the installation of underground utilities in new developments.
Park Development Fund
To account for park fees received from developers for the acquisition, improvement and expansion of public parks, playgrounds and recreational facilities.
Storm Drainage District Fund
To account for revenues and expenditures of funds in conjunction with storm drainage districts.
Improvement Assessment District 84-1 Fund
To account for the revenues and expenditures associated with the construction of a new north access road and road improvements. The City does not prepare a budget for this fund.
Youth Sports Capital Improvement Fund
To account for revenues and expenditures in conjunction with the fees collected from players each year to pay for capital improvement projects benefiting the youth sports organizations.
-126- 230 February 3, 2020, City Council Meeting Page No. 223 City of La Verne Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2019 (with comparative data for June 30, 2018)
Capital Projects Funds
ROW I/S Underground Management Technology Utilities Assets Cash and investments $ 3,473,987 $ 69,668 $ 84,828 Interest receivable - 328 393
Total assets $ 3,473,987 $ 69,996 $ 85,221
Liabilities and Fund Balances Liabilities: Accounts payable $ - -$ -$
Total liabilities - - -
Fund balances: Restricted for: Public works - - 85,221 Community services - - - Assigned to: Capital Projects 3,473,987 69,996 -
Total fund balances 3,473,987 69,996 85,221
Total liabilities and fund balances $ 3,473,987 $ 69,996 $ 85,221
-127- 231 February 3, 2020, City Council Meeting Page No. 224
continued Capital Projects Funds Storm Youth Sports Park Drainage Capital Totals Development District Improvement 2019 2018
$ 1,092,403 $ 1,257,615 $ 233,235 $ 6,211,736 $ 6,516,094 5,177 5,963 1,114 12,975 13,612
$ 1,097,580 $ 1,263,578 $ 234,349 $ 6,224,711 $ 6,529,706
$ 306,776 $ - $ - $ 306,776 $ 828
306,776 - - 306,776 828
- 1,263,578 - 1,348,799 1,574,112 790,804 - 234,349 1,025,153 1,291,999
- - - 3,543,983 3,662,767
790,804 1,263,578 234,349 5,917,935 6,528,878
$ 1,097,580 $ 1,263,578 $ 234,349 $ 6,224,711 $ 6,529,706
-128- 232 February 3, 2020, City Council Meeting Page No. 225 City of La Verne Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Capital Projects Fund
ROW I/S Underground Management Technology Utilities Revenues: Charges for services $ 130,834 $ - $ 2,787 Investment income - 1,452 1,797 Net increase (decrease) in the fair value of investments - 1,190 1,507 Other - 740 - Donations and contributions - - -
Total revenues 130,834 3,382 6,091
Expenditures: Capital projects - - -
Total expenditures - - -
Excess of revenues over expenditures 130,834 3,382 6,091
Other Financing Uses: Transfers out (253,000) - -
Total other financing uses (253,000) - -
Net change in fund balances (122,166) 3,382 6,091
Fund balances, beginning of year 3,596,153 66,614 79,130
Fund balances, end of year $ 3,473,987 $ 69,996 $ 85,221
-129- 233 February 3, 2020, City Council Meeting Page No. 226
continued Capital Projects Fund Storm Youth Sports Park Drainage Capital Totals Development District Improvements 2019 2,018
$ 45,750 $ 2,788 $ 17,590 $ 199,749 $ 484,397 23,304 27,761 4,958 59,272 65,566
19,192 22,047 4,124 48,060 (40,645) 8,659 - - 9,399 42,306 16,950 - - 16,950 -
113,855 52,596 26,672 333,430 551,624
407,373 - - 407,373 390,380
407,373 - - 407,373 390,380
(293,518) 52,596 26,672 (73,943) 161,244
- (284,000) - (537,000) -
- (284,000) - (537,000) -
(293,518) (231,404) 26,672 (610,943) 161,244
1,084,322 1,494,982 207,677 6,528,878 6,367,634
$ 790,804 $ 1,263,578 $ 234,349 $ 5,917,935 $ 6,528,878
-130- 234 February 3, 2020, City Council Meeting Page No. 227 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ROW Management Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 120,000 $ 120,000 $ 130,834 $ 10,834 $ 126,837 Investment income 35,000 35,000 - (35,000) 26,879
Total revenues 155,000 155,000 130,834 (24,166) 153,716
Excess (deficiency) of revenues over (under) expenditures 155,000 155,000 130,834 (24,166) 153,716
Other Financing Uses: Transfers out (253,000) (253,000) (253,000) - -
Total other financing uses (253,000) (253,000) (253,000) - -
Net change in fund balance (98,000) (98,000) (122,166) (24,166) 153,716
Fund balance, beginning of year 3,596,153 3,596,153 3,596,153 - 3,442,437
Fund balance, end of year $ 3,498,153 $ 3,498,153 $ 3,473,987 $ (24,166) $ 3,596,153
-131- 235 February 3, 2020, City Council Meeting Page No. 228 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual I/S Technology Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Investment income$ 700 $ 700 $ 1,452 $ 752 $ 872 Net increase (decrease) in the fair value of investments - - 1,190 1,190 (922) Miscellaneous - - 740 740 -
Total revenues 700 700 3,382 2,682 (50)
Net change in fund balance 700 700 3,382 2,682 (50)
Fund balance, beginning of year 66,614 66,614 66,614 - 66,664
Fund balance, end of year $ 67,314 $ 67,314 $ 69,996 $ 2,682 $ 66,614
-132- 236 February 3, 2020, City Council Meeting Page No. 229 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Underground Utilities Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 17,000 $ 17,000 $ 2,787 $ (14,213) $ 4,277 Investment income 800 800 1,797 997 1,043 Net increase (decrease) in the fair value of investments - - 1,507 1,507 (1,140)
Total revenues 17,800 17,800 6,091 (11,709) 4,180
Net change in fund balance 17,800 17,800 6,091 (11,709) 4,180
Fund balance, beginning of year 79,130 79,130 79,130 - 74,950
Fund balance, end of year$ 96,930 $ 96,930 $ 85,221 $ (11,709) $ 79,130
-133- 237 February 3, 2020, City Council Meeting Page No. 230 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Park Development Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 9,000 $ 9,000 $ 45,750 $ 36,750 $ 309,430 Investment income 11,000 11,000 23,304 12,304 13,960 Net increase (decrease) in the fair value of investments - - 19,192 19,192 (14,397) Donations and contributions - - 16,950 16,950 - Other - - 8,659 8,659 42,306
Total revenues 20,000 20,000 113,855 93,855 351,299
Expenditures: Capital projects 413,896 413,896 407,373 6,523 332,233
Total expenditures 413,896 413,896 407,373 6,523 332,233
Net change in fund balance (393,896) (393,896) (293,518) 100,378 19,066
Fund balance, beginning of year 1,084,322 1,084,322 1,084,322 - 1,065,256
Fund balance, end of year$ 690,426 $ 690,426 $ 790,804 $ 100,378 $ 1,084,322
-134- 238 February 3, 2020, City Council Meeting Page No. 231 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Storm Drainage District Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services$ 17,000 $ 17,000 $ 2,788 $ (14,212) $ 30,727 Investment income 15,000 15,000 27,761 12,761 19,967 Net increase (decrease) in the fair value of investments - - 22,047 22,047 (21,143)
Total revenues 32,000 32,000 52,596 20,596 29,551
Excess of revenues over expenditures 32,000 32,000 52,596 20,596 29,551
Other Financing Uses: Transfers out (284,000) (284,000) (284,000) - -
Total other financing uses (284,000) (284,000) (284,000) - -
Net change in fund balance (252,000) (252,000) (231,404) 20,596 29,551
Fund balance, beginning of year 1,494,982 1,494,982 1,494,982 - 1,465,431
Fund balance, end of year $ 1,242,982 $ 1,242,982 $ 1,263,578 $ 20,596 $ 1,494,982
-135- 239 February 3, 2020, City Council Meeting Page No. 232 City of La Verne Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Youth Sports Capital Improvement Fund For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Budgeted Amounts 2019 Variance with 2018 Original Final Amounts Final Budget Amounts
Revenues: Charges for services $ 10,000 $ 10,000 $ 17,590 $ 7,590 $ 13,126 Investment income 2,100 2,100 4,958 2,858 2,845 Net increase (decrease) in the fair value of investments - - 4,124 4,124 (3,043)
Total revenues 12,100 12,100 26,672 14,572 12,928
Expenditures: Capital outlay - - - - 8,665
Excess (deficiency) of revenues over (under) expenditures 12,100 12,100 26,672 14,572 4,263
Net change in fund balance 12,100 12,100 26,672 14,572 4,263
Fund balance, beginning of year - - 207,677 207,677 203,414
Fund balance, end of year $ 12,100 $ 12,100 $ 234,349 $ 222,249 $ 207,677
-136- 240 February 3, 2020, City Council Meeting Page No. 233
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241 February 3, 2020, City Council Meeting Page No. 234
Internal Service Funds
Internal Service funds are used to account for goods and services between departments on a cost reimbursement basis.
Equipment Fund
To account for operating and replacement cost associated with City vehicles and equipment.
Risk Management
To account for risk management activities of the City including liability insurance premiums, claims settlement and City self-retention liability program activities.
-137- 242 February 3, 2020, City Council Meeting Page No. 235 City of La Verne Combining Statement of Fund Net Position Internal Service Funds June 30, 2019 (with comparative data for June 30, 2018)
Governmental Activities Internal Service Funds Totals Equipment Risk Management Total 2019 2018 Assets: Current assets: Cash and investments $ 1,530,346 $ 155,043 $ 1,685,389 $ 1,685,389 $ 1,515,163 Accounts receivable 500 - 500 500 - Prepaid items - 105,433 105,433 105,433 - Inventory of material and supplies, at cost 143,297 - 143,297 143,297 143,775
Total current assets 1,674,143 260,476 1,934,619 1,934,619 1,658,938
Noncurrent assets: Capital assets: Capital assets not being depreciated 143,701 - 143,701 143,701 - Capital assets being depreciated, net of accumulated depreciation 2,150,357 - 2,150,357 2,150,357 2,087,131
Total noncurrent assets 2,294,058 - 2,294,058 2,294,058 2,087,131
Total assets 3,968,201 260,476 4,228,677 4,228,677 3,746,069
Liabilities: Current liabilities: Accounts payable 48,042 - 48,042 48,042 22,768 Accrued expenses 11,647 - 11,647 11,647 11,353 Unpaid claims liability - 178,724 178,724 178,724 - Compensated absences - current 16,933 - 16,933 16,933 38,036
Total current liabilities 76,622 178,724 255,346 255,346 72,157
Long-term liabilities: Compensated absences 34,957 - 34,957 34,957 -
Total long-term liabilities 34,957 - 34,957 34,957 -
Total liabilities 111,579 178,724 290,303 290,303 72,157
Net position: Net investment in capital assets 2,294,058 - 2,294,058 2,294,058 2,087,131 Unrestricted 1,562,564 81,752 1,644,316 1,644,316 1,586,781
Total net position $ 3,856,622 $ 81,752 $ 3,938,374 $ 3,938,374 $ 3,673,912
-138- 243 February 3, 2020, City Council Meeting Page No. 236 City of La Verne Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Governmental Activities Internal Service Funds Totals Equipment Risk Management Total 2019 2018
Operating revenues: Charges for services $ 1,793,301 $ - $ 1,793,301 $ 1,793,301 $ 1,860,742 Risk premiums - 240,860 240,860 240,860 -
Total operating revenues 1,793,301 240,860 2,034,161 2,034,161 1,860,742
Operating expenses: Administration 486,789 22,100 508,889 508,889 491,970 Maintenance 548,622 - 548,622 548,622 471,910 Fuel 234,017 - 234,017 234,017 283,971 Claims settlement - 187,008 187,008 187,008 - Depreciation 260,683 - 260,683 260,683 265,056
Total operating expenses 1,530,111 209,108 1,739,219 1,739,219 1,512,907
Operating income 263,190 31,752 294,942 294,942 347,835
Nonoperating revenues (expenses): Investment income - - - - 8,300 Gain (loss) on sale of capital assets 19,520 - 19,520 19,520 23,026
Total nonoperating revenues 19,520 - 19,520 19,520 31,326
Income before contributions and transfers 282,710 31,752 314,462 314,462 379,161
Transfers in - 50,000 50,000 50,000 - Transfers out (100,000) - (100,000) (100,000) - Total transfers (100,000) 50,000 (50,000) (50,000) -
Change in net position 182,710 81,752 264,462 264,462 379,161
Net position, beginning of year 3,673,912 - 3,673,912 3,673,912 3,294,751
Net position, end of year $ 3,856,622 $ 81,752 $ 3,938,374 $ 3,938,374 $ 3,673,912
-139- 244 February 3, 2020, City Council Meeting Page No. 237 City of La Verne Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Governmental Activities Internal Service Funds Risk Equipment Management Total Cash flows from operating activities: Cash received from users$ 1,792,801 $ 240,860 $ 2,033,661 Cash payments to suppliers for goods and services (639,409) (135,817) (775,226) Cash payments to employees for services (590,119) - (590,119)
Net cash provided by operating activities 563,273 105,043 668,316
Cash flows from noncapital financing activities: Cash received from other funds - 50,000 50,000 Cash paid to other funds (100,000) - (100,000)
Net cash provided by (used for) noncapital financing activities (100,000) 50,000 (50,000)
Cash flows from capital and related financing activities: Cash paid to purchase capital assets (490,437) - (490,437) Cash received from sale of capital assets 42,347 - 42,347
Net cash used for capital and related financing activities (448,090) - (448,090)
Cash flows from investing activities: Interest on investments - - -
Net cash provided by investing activities - - -
Net increase in cash and investments 15,183 155,043 170,226
Cash and investments, beginning of year 1,515,163 - 1,515,163
Cash and investments, end of year $ 1,530,346 $ 155,043 $ 1,685,389
-140- 245 February 3, 2020, City Council Meeting Page No. 238
continued
Totals
2019 2018
$ 2,033,661 $ 1,860,742 (775,226) (824,103) (590,119) (489,835)
668,316 546,804
50,000 - (100,000) -
(50,000) -
(490,437) (68,948) 42,347 30,320
(448,090) (38,628)
- 10,645
- 10,645
170,226 518,821
1,515,163 996,342
$ 1,685,389 $ 1,515,163
-141- 246 February 3, 2020, City Council Meeting Page No. 239 City of La Verne Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2019 (with comparative data for June 30, 2018)
Governmental Activities Internal Service Funds Risk Equipment Management Total Reconciliation of operating income to net cash provided by operating activities: Operating income$ 263,190 $ 31,752 $ 294,942 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 260,683 - 260,683 (Increase) decrease in: Accounts receivable (500) - (500) Due from other governments - - - Prepaid items - (105,433) (105,433) Inventory of materials and supplies, at cost 478 - 478 Increase (decrease) in: Accounts payable 25,274 - 25,274 Accrued expenses 294 - 294 Unpaid claims liability - 178,724 178,724 Compensated absences 13,854 - 13,854
Total adjustments 300,083 73,291 373,374
Net cash provided by operating activities $ 563,273 $ 105,043 $ 668,316
Noncash capital and related financing activities None
-142- 247 February 3, 2020, City Council Meeting Page No. 240
continued
Totals
2019 2018
$ 294,942 $ 347,835
260,683 265,056
(500) - - - (105,433) (8,645) 478 -
25,274 (6,472) 294 (11,934) 178,724 - 13,854 (39,036)
373,374 198,969
$ 668,316 $ 546,804
-143- 248 February 3, 2020, City Council Meeting Page No. 241
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249 February 3, 2020, City Council Meeting Page No. 242
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations and other governmental units. Funds included are:
Deposits Fund
To account for deposits held by the City to ensure compliance with City regulations.
L.A. Impact Fund
To account for monies held under an agreement for financial support services to L.A. Impact, a multi- jurisdictional major crime task force.
-144- 250 February 3, 2020, City Council Meeting Page No. 243 City of La Verne Combining Balance Sheet Custodial Funds June 30, 2019 (with comparative data for June 30, 2018)
L.A. Totals Deposits Impact 2019 2018 Asse ts Cash and investments$ 113,567 $ 9,548,514 $ 9,662,081 14,242,242 Interest receivable 175 68,211 68,386 51,397 Accounts receivable 1,263 - 1,263 4,608 Due from other governments - 398,470 398,470 458,795
Total assets $ 115,005 $ 10,015,195 $ 10,130,200 $ 14,757,042
Liabilities Accounts payable $ 3,755 $ 166,727 $ 170,482 $ 738,814 Deposits payable 111,250 9,848,468 9,959,718 14,018,228
Total liabilities $ 115,005 $ 10,015,195 $ 10,130,200 $ 14,757,042
-145- 251 February 3, 2020, City Council Meeting Page No. 244 City of La Verne Combining Statement of Changes in Assets and Liabilities Custodial Funds For the Year Ended June 30, 2019
Balance at Balance at June 30, 2018 Additions Deletions June 30, 2019
DEPOSITS FUND Asse ts Cash and investments$ 3,225,813 $ 580,765 $ (3,693,011) $ 113,567 Interest receivable 189 175 (189) 175 Accounts receivable - 1,263 - 1,263
Total assets$ 3,226,002 $ 582,203 $ (3,693,200) $ 115,005
Liabilities Accounts payable$ 505,772 $ 3,755 $ (505,772) $ 3,755 Deposits payable 2,720,230 578,448 (3,187,428) 111,250
Total liabilities$ 3,226,002 $ 582,203 $ (3,693,200) $ 115,005
Balance at Balance at June 30, 2018 Additions Deletions June 30, 2019
L.A. IMPACT FUND Asse ts Cash and investments$ 11,016,429 $ 7,508,832 $ (8,976,747) $ 9,548,514 Interest receivable 51,208 68,385 (51,382) 68,211 Accounts receivable 4,608 - (4,608) - Due from other governments 458,795 398,470 (458,795) 398,470
Total assets $ 11,531,040 $ 7,975,687 $ (9,491,532) $ 10,015,195
Liabilities Accounts payable $ 233,042 $ 166,727 $ (233,042) $ 166,727 Deposits payable 11,297,998 7,808,960 (9,258,490) 9,848,468
Total liabilities $ 11,531,040 $ 7,975,687 $ (9,491,532) $ 10,015,195
-146- 252 February 3, 2020, City Council Meeting Page No. 245 City of La Verne Combining Statement of Changes in Assets and Liabilities Custodial Funds (continued) For the Year Ended June 30, 2019
Balance at Balance at June 30, 2018 Additions Deletions June 30, 2019
TOTALS - ALL CUSTODIAL FUNDS Asse ts Cash and investments$ 14,242,242 $ 8,089,597 $ (12,669,758) $ 9,662,081 Interest receivable 51,397 68,560 (51,571) 68,386 Accounts receivable 4,608 1,263 (4,608) 1,263 Due from other governments 458,795 398,470 (458,795) 398,470
Total assets$ 14,757,042 $ 8,557,890 $ (13,184,732) $ 10,130,200
Liabilities Accounts payable$ 738,814 $ 170,482 $ (738,814) $ 170,482 Deposits payable 14,018,228 8,387,408 (12,445,918) 9,959,718
Total liabilities $ 14,757,042 $ 8,557,890 $ (13,184,732) $ 10,130,200
-147- 253 February 3, 2020, City Council Meeting Page No. 246
STATISTICAL SECTION
254 February 3, 2020, City Council Meeting Page No. 247 City of La Verne Net Position by Component Last Ten Fiscal Years
Fiscal Year 2010 2011 2012 2013 2014
Governmental activities: Net investment in capital assets$ 52,229,306 $ 52,684,848 $ 50,818,712 $ 49,029,379 $ 48,077,051 Restricted 15,753,054 15,196,501 19,194,850 20,080,663 25,929,312 Unrestricted 7,774,894 11,004,877 11,259,006 12,989,050 14,207,910 Total governmental activities net position $ 75,757,254 $ 78,886,226 $ 81,272,568 $ 82,099,092 $ 88,214,273
Business-type activities: Net investment in capital assets$ 36,214,228 $ 35,884,348 $ 35,750,047 $ 35,923,190 $ 36,147,186 Unrestricted 15,194,777 15,509,491 14,925,722 15,103,782 15,773,129 Total business-type activities net position $ 51,409,005 $ 51,393,839 $ 50,675,769 $ 51,026,972 $ 51,920,315
Primary government: Net investment in capital assets$ 88,443,534 $ 88,569,196 $ 86,568,759 $ 84,952,569 $ 84,224,237 Restricted 15,753,054 15,196,501 19,194,850 20,080,663 25,929,312 Unrestricted 22,969,671 26,514,368 26,184,728 28,092,832 29,981,039 Total primary government net position$ 127,166,259 $ 130,280,065 $ 131,948,337 $ 133,126,064 $ 140,134,588
-148- 255 February 3, 2020, City Council Meeting Page No. 248
continued 2015 2016 2017 2018 2019
$ 49,962,522 $ 49,465,005 $ 49,902,327 $ 47,179,328 $ 47,200,374 23,675,628 22,021,254 19,069,560 21,391,209 26,278,328 (19,130,266) (17,093,346) (16,727,648) (24,269,599) (31,078,080)
$ 54,507,884 $ 54,392,913 $ 52,244,239 $ 44,300,938 $ 42,400,622
$ 35,353,328 $ 35,008,768 $ 34,569,867 $ 33,389,109 $ 32,184,071 14,222,461 14,157,873 13,444,492 12,258,455 15,363,629
$ 49,575,789 $ 49,166,641 $ 48,014,359 $ 45,647,564 $ 47,547,700
$ 85,315,850 $ 84,473,773 $ 84,472,194 $ 80,568,437 $ 79,384,445 23,675,628 22,021,254 19,069,560 21,391,209 26,278,328 (4,907,805) (2,935,473) (3,283,156) (12,011,144) (15,714,451)
$ 104,083,673 $ 103,559,554 $ 100,258,598 $ 89,948,502 $ 89,948,322
-149- 256 February 3, 2020, City Council Meeting Page No. 249 City of La Verne Changes in Net Position Last Ten Fiscal Years
Fiscal Year 2010 2011 2012 2013 2014 Expenses: Governmental activities: General government $ 1,710,441 $ 1,531,758 $ 1,972,652 $ 1,643,954 $ 1,827,886 Public safety 19,290,517 17,677,088 18,527,428 18,896,525 19,327,058 Community development 3,986,983 3,459,358 3,079,747 2,963,793 3,248,319 Public works 6,954,468 8,628,963 8,100,160 9,019,496 7,885,390 Community services 4,752,147 2,656,296 2,824,709 2,974,167 2,863,005 Interest on long-term debt 767,611 917,635 651,653 823,208 452,859 Total governmental activities expenses 37,462,167 34,871,098 35,156,349 36,321,143 35,604,517
Business-type activities: Water 8,025,256 8,207,100 9,016,754 9,684,637 9,812,876 Sewer 1,417,366 1,147,641 1,180,482 1,174,152 1,276,063 Total business-type activities expenses 9,442,622 9,354,741 10,197,236 10,858,789 11,088,939 Total primary government expenses 46,904,789 44,225,839 45,353,585 47,179,932 46,693,456
Program revenues: Governmental activities: Charges for services General government 273,635 288,597 241,613 266,552 279,949 Public safety 2,781,912 2,343,575 2,587,852 2,916,503 2,687,492 Community development 742,957 1,445,509 1,326,086 1,327,965 2,183,340 Public works 3,071,153 3,029,797 2,725,829 3,045,804 2,712,972 Community services 2,363,170 2,397,408 2,510,120 2,525,545 2,523,319 Operating grants and contributions 5,244,361 5,773,869 5,166,383 4,951,275 7,801,379 Capital grants and contributions 2,004,807 2,048,144 2,047,952 1,226,011 3,343,812 Total governmental activities program revenues 16,481,995 17,326,899 16,605,835 16,259,655 21,532,263
Business-type activities: Charges for services Water 9,008,653 8,869,120 9,137,178 10,517,927 11,331,750 Sewer 1,130,478 1,310,485 1,261,551 1,429,643 1,572,866 Capital grants and contributions - - - 292,410 44,030 Total business-type activities program revenues 10,139,131 10,179,605 10,398,729 12,239,980 12,948,646 Total primary government program revenues 26,621,126 27,506,504 27,004,564 28,499,635 34,480,909
-150- 257 February 3, 2020, City Council Meeting Page No. 250
continued 2015 2016 2017 2018 2019
$ 1,974,508 $ 2,196,397 $ 2,715,617 $ 2,759,715 $ 3,641,163 19,515,717 20,066,984 22,022,983 24,712,698 31,559,738 3,880,059 3,702,616 3,531,033 3,700,286 3,556,533 7,534,092 10,780,745 8,776,792 9,826,353 6,897,544 2,895,303 3,205,882 3,487,594 3,624,513 2,790,862 431,380 408,268 433,862 359,782 1,878,336
36,231,059 40,360,892 40,967,881 44,983,347 50,324,176
9,291,404 9,676,517 9,621,140 11,687,661 10,186,539 1,242,218 1,337,062 1,329,348 1,528,470 1,384,766
10,533,622 11,013,579 10,950,488 13,216,131 11,571,305
46,764,681 51,374,471 51,918,369 58,199,478 61,895,481
204,107 208,983 566,380 601,762 355,650 2,568,625 2,509,586 2,969,308 4,101,164 3,541,634 2,615,274 2,839,801 1,650,747 2,083,020 1,488,625 3,048,078 3,147,941 3,071,595 3,307,588 3,071,662 2,812,911 2,819,369 3,065,275 2,714,193 2,738,056 5,753,926 5,549,236 1,384,326 838,904 4,529,425 2,369,219 1,432,086 2,081,615 1,830,430 4,892,689
19,372,140 18,507,002 14,789,246 15,477,061 20,617,741
10,716,815 9,307,343 9,278,232 12,365,438 11,351,736 1,685,104 2,040,120 1,468,530 1,652,980 1,827,769 - - - - -
12,401,919 11,347,463 10,746,762 14,018,418 13,179,505
31,774,059 29,854,465 25,536,008 29,495,479 33,797,246
-151- 258 February 3, 2020, City Council Meeting Page No. 251 City of La Verne Changes in Net Position (continued) Last Ten Fiscal Years
Fiscal Year 2010 2011 2012 2013 2014 Net revenues (expenses): Governmental activities $ (20,980,172) $ (17,544,199) $ (18,550,514) $ (20,061,488) $ (14,072,254) Business-type activities 696,509 824,864 201,493 1,381,191 1,859,707 Total net revenues (expenses) (20,283,663) (16,719,335) (18,349,021) (18,680,297) (12,212,547)
General revenues and other changes in net position: Governmental activities: Taxes: Property taxes 6,304,219 8,126,601 5,246,028 7,912,524 7,014,924 Sales taxes 3,095,132 3,457,066 3,803,845 3,885,736 3,828,720 Utility taxes and other taxes 3,814,753 3,710,193 3,626,624 3,706,997 3,612,790 Special assessments - - - - - Motor vehicle in-lieu, unrestricted 2,525,697 2,582,883 2,484,960 2,543,269 2,595,188 Investment income 535,805 357,605 440,714 438,461 544,000 Unrealized gain (loss) - - - - - Other general revenues 143,550 1,363,723 1,370,310 1,255,925 1,446,716 Transfers 1,075,100 1,075,100 1,075,100 1,145,100 1,145,100 Total governmental activities 17,494,256 20,673,171 18,047,581 20,888,012 20,187,438
Business-type activities: Investment income 275,005 235,070 155,537 74,744 134,741 Unrealized gain (loss) - - - - - Transfers (1,075,100) (1,075,100) (1,075,100) (1,145,100) (1,145,100) Other business revenues - - - 40,368 43,995 Total business-type activities (800,095) (840,030) (919,563) (1,029,988) (966,364) Total primary government 16,694,161 19,833,141 17,128,018 19,858,024 19,221,074
Governmental activities: Extraordinary item - - 2,889,275 - -
Change in net position: Governmental activities (3,485,916) 3,128,972 2,386,342 826,524 6,115,184 Business-type activities (103,586) (15,166) (718,070) 351,203 893,343 Total primary government $ (3,589,502) $ 3,113,806 $ 1,668,272 $ 1,177,727 $ 7,008,527
-152- 259 February 3, 2020, City Council Meeting Page No. 252
continued 2015 2016 2017 2018 2019
$ (16,858,919) $ (21,853,890) $ (26,178,635) $ (29,509,286) $ (29,706,435) 1,868,297 333,884 (203,726) 802,287 1,608,200 (14,990,622) (21,520,006) (26,382,361) (28,706,999) (28,098,235)
7,504,209 7,832,817 7,205,979 7,980,984 8,749,690 4,032,563 4,572,283 4,245,232 4,439,369 3,536,886 3,747,097 4,084,147 5,789,426 6,383,797 4,658,252 - - 1,560,600 1,833,639 6,533,577 2,721,045 2,890,999 3,095,141 3,281,759 1,915,447 655,428 621,472 550,335 767,325 943,068 - - - (233,112) 711,025 1,295,786 743,314 448,148 274,038 217,450 1,145,100 993,887 1,135,100 1,135,100 540,724 21,101,228 21,738,919 24,029,961 25,862,899 27,806,119
111,104 201,493 136,075 206,318 444,657 - - - (218,225) 338,003 (1,145,100) (993,887) (1,135,100) (1,135,100) (540,724) - 49,362 50,469 - 50,000 (1,033,996) (743,032) (948,556) (1,147,007) 291,936 20,067,232 20,995,887 23,081,405 24,715,892 28,098,055
- - - - -
4,242,309 (114,971) (2,148,674) (3,646,387) (1,900,316) 834,301 (409,148) (1,152,282) (344,720) 1,900,136 $ 5,076,610 $ (524,119) $ (3,300,956) $ (3,991,107) $ (180)
-153- 260 February 3, 2020, City Council Meeting Page No. 253
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261 February 3, 2020, City Council Meeting Page No. 254 City of La Verne Governmental Activities Tax Revenues By Source Last Ten Fiscal Years
Utility Fiscal Property Sales and Other Year Taxes Tax Taxes Totals
2009-10 $ 6,304,219 $ 3,095,132 $ 3,814,753 $ 13,214,104
2010-11 8,126,601 3,457,066 3,710,193 15,293,860
2011-12 5,246,028 3,803,845 3,626,624 12,676,497
2012-13 7,912,524 3,885,736 3,706,997 15,505,257
2013-14 7,014,924 3,828,720 3,612,790 14,456,434
2014-15 7,504,209 4,032,563 3,747,098 15,283,870
2015-16 7,832,817 4,572,283 3,625,134 16,030,234
2016-17 7,205,979 4,245,232 5,789,426 17,240,637
2017-18 11,262,743 4,439,369 6,383,797 22,085,909
2018-19 8,749,690 3,536,886 4,658,252 16,944,828
-154- 262 February 3, 2020, City Council Meeting Page No. 255 City of La Verne Fund Balances of Governmental Funds Last Ten Fiscal Years
Post GASB 54 Fiscal Year 2012 2013 2014 2015 General fund: Nonspendable$ 1,293,565 $ 1,835,929 $ 1,678,574 $ 1,554,822 Restricted - - - - Committed 4,221,000 4,291,000 4,338,000 4,599,000 Assigned 4,683,218 5,750,295 6,324,030 6,331,521 Unassigned - - - -
Total general fund 10,197,783 11,877,224 12,340,604 12,485,343
All other governmental funds: Nonspendable 34,322 39,695 341,695 34,322 Restricted for: Public safety 2,704,609 2,781,571 6,474,817 6,172,010 Community services 1,882,381 2,053,530 2,448,900 3,072,992 Community development 4,311,810 4,107,992 4,580,663 4,754,698 Low and Moderate Income Housing 4,589,343 3,089,343 3,089,343 3,089,343 Public works 5,688,491 6,966,190 8,253,552 5,504,548 Debt service 182,037 1,082,037 1,082,037 1,082,037 Assigned 2,277,581 2,521,222 2,752,549 6,319,469 Unassigned - - (228) -
Total all other governmental funds 21,670,574 22,641,580 29,023,328 30,029,419
Total all governmental funds$ 31,868,357 $ 34,518,804 $ 41,363,932 $ 42,514,762
Pre GASB 54 Fiscal Year 2010 2011 General fund: Reserved $ 1,983,968 $ 1,267,067 Unreserved 6,043,615 7,278,882
Total general fund $ 8,027,583 $ 8,545,949
All other governmental funds: Reserved $ 2,298,052 $ 4,950,180 Unreserved, reported in: Special revenue funds 13,969,843 12,781,166 Capital projects funds 5,706,131 6,664,844
Total all other governmental funds 21,974,026 24,396,190
Total all governmental funds $ 30,001,609 $ 32,942,139
During fiscal year 2011, the City adopted GASBS No. 54. This Statement changes the presentation of governmental fund types fund equity. The City retroactively changed the fiscal year 2010 to comply with the requirements of the Statement, but chose not to retroactively apply the Statement in the Statistical Section (except for the 2010 fiscal year).
-155- 263 February 3, 2020, City Council Meeting Page No. 256
continued Fiscal Year 2016 2017 2018 2019
$ 2,062,111 $ 2,375,407 $ - $ - - - 40,000 788,343 4,657,000 4,876,257 4,951,921 5,286,596 5,608,939 1,844,650 4,890,751 4,866,125 - - - 39,138
12,328,050 9,096,314 9,882,672 10,980,202
34,322 - - -
5,824,449 4,906,807 5,008,180 7,422,374 3,180,674 2,000,471 2,265,643 2,577,230 4,907,438 4,926,850 5,247,548 5,040,211
3,089,343 3,129,596 3,117,791 3,114,634 3,711,717 4,073,949 5,680,160 7,335,536 1,307,633 31,887 31,887 - 6,726,835 7,695,117 4,827,593 3,943,635 - - - (39,138)
28,782,411 26,764,677 26,178,802 29,394,482
$ 41,110,461 $ 35,860,991 $ 36,061,474 $ 40,374,684
-156- 264 February 3, 2020, City Council Meeting Page No. 257 City of La Verne Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years
Fiscal Year 2010 2011 2012 2013 2014 Revenues: Property taxes $ 14,714,919 $ 14,501,348 $ 10,606,419 $ 7,912,524 $ 7,014,924 Other taxes 7,903,902 8,872,190 8,690,987 8,894,483 10,024,436 Licenses and permits 1,112,811 1,836,426 1,590,421 1,785,525 2,565,666 Intergovernmental 5,458,963 5,168,580 5,346,891 4,372,353 4,564,832 Charges for services 7,817,562 7,538,955 7,593,133 8,192,632 8,846,884 Fines and forfeitures 812,948 2,155,826 1,719,687 1,443,083 4,010,100 Special assessments 340,025 346,633 341,324 343,242 335,119 Investment income 522,752 347,789 434,077 436,309 541,614 Net increase (decrease) in the fair value of investments - - - - - Rents 1,841,342 1,818,860 1,854,032 1,874,907 1,954,643 Other 1,439,207 703,294 755,099 745,357 712,606 Donations and contributions - - - - - Total revenues 41,964,431 43,289,901 38,932,070 36,000,415 40,570,824
Expenditures Current: General government 1,857,547 1,583,604 1,912,520 1,616,804 1,794,755 Public safety 19,322,652 17,671,791 17,915,253 18,359,153 19,066,747 Community development 3,908,700 3,489,834 3,256,434 2,770,200 3,204,836 Public works 5,247,773 6,676,584 5,962,047 5,920,061 6,154,655 Community services 4,414,471 2,302,983 2,401,722 2,318,189 2,560,054 Capital projects 2,282,314 1,950,264 1,155,260 1,258,648 1,337,337 Debt service: Principal retirement 481,887 558,270 540,001 270,000 290,000 Interest and financing costs 885,027 816,394 677,465 832,013 462,412 Pass through obligations 8,410,700 6,374,747 4,097,695 - - AB 1484 demand payment - - 1,262,696 - - Developer fees - - - 1,150,000 - Total expenditures 46,811,071 41,424,471 39,181,093 34,495,068 34,870,796
Excess (deficiency) of revenues over (under) expenditures (4,846,640) 1,865,430 (249,023) 1,505,347 5,700,028
Other financing sources (uses): Transfers in 7,049,573 4,507,692 3,889,699 5,095,388 3,992,816 Transfers out (5,794,473) (3,432,592) (2,833,854) (3,950,288) (2,847,716) Proceeds of bonds/notes payable - - - - - Proceeds on sale of capital assets - - 800 - - Total other financing sources (uses) 1,255,100 1,075,100 1,056,645 1,145,100 1,145,100
Extraordinary item - - (1,881,404) - -
Net change in fund balances$ (3,591,540) $ 2,940,530 $ (1,073,782) $ 2,650,447 $ 6,845,128
Debt service as a percentage of noncapital expenditures 3.07% 3.48% 3.20% 3.32% 2.24%
-157- 265 February 3, 2020, City Council Meeting Page No. 258
continued 2015 2016 2017 2018 2019
$ 7,504,209 $ 7,832,817 $ 7,205,979 $ 7,980,984 $ 12,290,327 9,973,673 10,050,802 13,129,799 14,269,310 12,928,209 3,462,444 3,074,353 1,870,268 2,044,675 1,356,353 4,716,765 5,265,673 1,924,073 1,718,794 706,344 8,380,908 7,865,713 7,849,605 8,590,064 7,585,092 1,676,227 1,132,219 898,825 428,585 3,531,994 343,975 342,991 1,560,600 1,833,640 1,922,726 650,579 868,232 542,675 759,025 943,068
- - - (233,112) 464,650 1,962,772 2,029,520 2,277,123 2,396,226 2,193,587 651,867 778,518 417,500 303,680 204,440 - - - - 2,522,192 39,323,419 39,240,838 37,676,447 40,091,871 46,648,982
2,009,006 2,355,862 2,657,938 2,545,181 6,158,282 20,177,207 21,436,055 21,450,278 21,475,100 55,836,336 3,513,848 3,860,322 3,509,152 3,465,266 6,470,400 6,650,031 6,603,159 6,538,123 6,836,253 10,478,666 2,553,751 2,931,516 3,194,753 2,887,362 4,245,855 3,667,258 3,702,749 2,189,902 3,073,482 5,142,635
305,000 330,000 4,060,000 375,000 1,756,332 441,588 419,363 460,871 368,844 1,888,124 ------39,317,689 41,639,026 44,061,017 41,026,488 91,976,630
5,730 (2,398,188) (6,384,570) (934,617) (45,327,648)
4,636,321 4,248,186 5,768,866 3,517,170 13,446,728 (3,491,221) (3,254,299) (4,633,766) (2,382,070) (12,856,004) - - - - 49,050,134 - - - - -
1,145,100 993,887 1,135,100 1,135,100 49,640,858
- - - - -
$ 1,150,830 $ (1,404,301) $ (5,249,470) $ 200,483 $ 4,313,210
2.09% 1.98% 10.80% 1.96% 4.20%
-158- 266 February 3, 2020, City Council Meeting Page No. 259 City of La Verne General Governmental Tax Revenues By Source Last Ten Fiscal Years
Proposition General Utility A, C Proposition Park Fiscal Property Sales Users Measure R 172 Franchise Development Year Taxes Tax Tax Sales Taxes Sales Taxes Taxes Taxes Totals
2009-10$ 14,714,919 $ 3,095,132 $ 3,224,458 $ 792,479 $ 266,416 $ 512,056 $ 13,361 $ 22,618,821
2010-11 14,501,348 3,457,066 3,156,997 841,045 278,525 553,197 585,360 23,373,538
2011-12 10,606,419 3,803,845 3,047,987 910,670 300,374 578,637 49,474 19,297,406
2012-13 7,912,524 3,885,736 3,098,144 963,038 324,178 608,852 14,535 16,807,007
2013-14 7,014,924 3,828,720 2,986,793 4,332,319 338,186 625,996 912,422 20,039,360
2014-15 7,504,209 4,032,563 3,087,586 1,390,203 355,210 659,511 448,559 17,477,841
2015-16 7,832,817 4,572,283 2,980,101 1,649,583 390,279 645,033 36,000 18,106,096
2016-17 7,205,979 4,245,232 2,874,221 1,475,551 367,562 584,710 103,500 16,856,755
2017-18 7,980,984 4,439,369 3,028,260 1,866,021 383,137 607,168 309,430 18,614,369
2018-19 8,749,690 3,536,886 2,887,985 2,099,642 401,339 2,887,985 45,750 20,609,277
Change 2010-2019 40.54% -14.27% 10.44% -164.95% -50.64% -464.00% -242.41% 8.88%
-159- 267 February 3, 2020, City Council Meeting Page No. 260 City of La Verne Assessed Value of Taxable Property Last Ten Fiscal Years
La Verne Total Fiscal Redevelopment Direct Year Agency1 City Total Tax Rate
2009-10 $ 989,509,283 $ 2,244,865,580 $ 3,234,374,863 0.4300%
2010-11 994,399,021 2,241,971,056 3,236,370,077 0.4309%
2011-12 1,011,273,422 2,279,380,049 3,290,653,471 0.4307%
2012-13 1,065,373,015 2,302,303,616 3,367,676,631 0.2144%
2013-14 1,079,049,767 2,361,863,116 3,440,912,883 0.1972%
2014-15 1,138,730,332 2,470,644,646 3,609,374,978 0.1974%
2015-16 1,240,889,036 2,595,916,348 3,836,805,384 0.1980%
2016-17 1,352,029,568 2,710,214,404 4,062,243,972 0.1820%
2017-18 1,482,635,776 2,828,542,385 4,311,178,161 0.1794%
2018-19 1,738,502,563 2,955,957,526 4,694,460,089 0.1816%
1 Excludes base year valuation of $194,730,652 for past five years; and $185,836,946 for 2008-09 and prior years.
Source: HdL Companies
-160- 268 February 3, 2020, City Council Meeting Page No. 261 City of La Verne Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Valuation) Last Ten Fiscal Years (Tax Rate Area 5044)
Total Metro Community Direct & Total Fiscal School Water College Overlapping Direct Year General District District District Rate Rate
2009-10 1.0000 0.297920 0.004300 0.049680 1.351900 0.430000
2010-11 1.0000 0.326890 0.003700 0.051520 1.382110 0.430880
2011-12 1.0000 0.306490 0.003700 0.050890 1.361080 0.430730
2012-13 1.0000 0.328620 0.003500 0.054860 1.386980 0.439280
2013-14 1.0000 0.311920 0.003500 0.042490 1.357910 0.177760
2014-15 1.0000 0.319810 0.003500 0.044560 1.367870 0.178020
2015-16 1.0000 0.297990 0.003500 0.037950 1.339440 0.177970
2016-17 1.0000 0.284510 0.003500 0.048060 1.336070 0.180430
2017-18 1.0000 0.335000 0.003500 0.046000 1.384500 0.178320
2018-19 1.0000 0.337670 0.003500 0.046730 1.387900 0.001816
NOTE: The City of La Verne had approximately 100 tax rate areas during the year ended June 30, 2016. The tax rates in these areas vary from 1.11% to 1.13% of assessed valuation. Tax Rate Area 5044 is one of the largest representing 25% of the total assessed valuation.
In 1978, California voters passed Proposition 13 which sets 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, owners are charged taxes as a percentage of assessed property values for the payment of the various intergovernmental overlapping debts.
Source: HdL Companies
-161- 269 February 3, 2020, City Council Meeting Page No. 262 City of La Verne Principal Property Taxpayers Current Year and Ten Years Ago
Fiscal Year 2019 2010 Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Value Valuation Value Valuation
Gilead Sciences Inc. $ 237,534,289 5.06% $ - - PKI La Verne Town Center LP 51,275,883 1.09% - - MG Monte Vista Apartments 50,242,056 1.07% - - La Verne Village LLC 41,370,105 0.88% - - Weiss Family LP 28,583,093 0.61% - - VPM Magnolia Courts LV LP 26,270,054 0.56% - - La Verne Commons LLC 25,271,573 0.54% - - Zimmer US Inc 23,436,137 0.50% - - Chainarc LLC 19,392,662 0.41% - - NNC Apartment Ventures LLC 17,503,030 0.37% - - PKI La Verne Town Center LP - - 49,929,214 1.54% WNRA Monto Vista LLC - - 41,456,183 1.28% La Verne Commons LLC - - 22,329,171 0.69% Sierra La Verne Country Club - - 18,178,513 0.56% La Verne Courtyard LLC - - 17,610,087 0.54% Thomas & Mary Redfern Trust - - 14,613,600 0.45% Kohls Department Stores Inc. - - 14,116,759 0.44% La Verne Partners LP - - 13,712,852 0.42% Gateway Pointe LLC - - 13,397,697 0.41% Stone Barkley Company LLC - - 12,490,893 0.39%
$ 520,878,882 11.09%$ 217,834,969 6.72%
The amounts shown above include assessed value data for both the City and Redevelopment Agency.
Source: Los Angeles County Assessor’s Office
-162- 270 February 3, 2020, City Council Meeting Page No. 263 City of La Verne Property Tax Levies and Collections Last Ten Fiscal Years
City Collected within the Taxes Levied Fiscal Year of the Levy Collections in Total Collections to Date Fiscal for the Percent Subsequent Percent Year Fiscal Year Amount of Levy Years Amount of Levy 2009-10$ 4,343,832 $ 3,779,649 87.01% $ 564,183 $ 4,343,832 100.00% 2010-11 4,375,794 3,889,481 88.89% 486,313 4,375,794 100.00% 2011-12 6,059,350 5,653,041 93.29% 406,309 6,059,350 100.00% 2012-13 7,912,524 7,438,335 94.01% 474,189 7,912,524 100.00% 2013-14 7,014,924 6,289,725 89.66% 725,199 7,014,924 100.00% 2014-15 7,504,209 6,789,991 90.48% 714,218 7,504,209 100.00% 2015-16 7,832,817 7,196,812 91.88% 636,005 7,832,817 100.00% 2016-17 7,597,714 7,345,016 96.67% 233,115 7,578,131 99.74% 2017-18 7,426,859 7,121,494 95.89% 138,914 7,260,408 97.76% 2018-19 8,635,094 8,593,406 99.52% 31,897 8,625,303 99.89%
NOTE: The amounts collected by the Redevelopment Agency include monies that were passed-through to other agencies. Current tax levies are the original charge as provided by the County of Los Angeles. Current tax collections do not include supplemental tax roll SB813, aircraft tax or other property taxes.
Source: Los Angeles Auditor controller’s Office and City Finance Division
-163- 271 February 3, 2020, City Council Meeting Page No. 264
continued La Verne Redevelopment Agency Collected within the Taxes Levied Fiscal Year of the Levy Collections in Total Collections to Date Fiscal for the Percent Subsequent Percent Year Fiscal Year Amount of Levy Years Amount of Levy 2009-10$ 10,078,645 $ 9,807,529 97.31% $ 563,558 $ 10,371,087 102.90% 2010-11 9,991,773 9,787,941 97.96% 337,613 10,125,554 101.34% 2011-12 N/A 2013-13 N/A 2013-14 N/A 2014-15 N/A 2015-16 N/A 2016-17 N/A 2017-18 N/A 2018-19 N/A
State legislation resulted in the Redevelopment Agency being dissolved on February 1, 2012.
-164- 272 February 3, 2020, City Council Meeting Page No. 265 City of La Verne Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars)
Fiscal Year 2009 2010 2011 2012 Apparel Stores $ 14,657 $ 13,841 $ 10,742 $ 13,937 General Merchandise 52,258 51,967 52,772 52,404 Food Stores 13,962 13,750 13,564 13,974 Eating and Drinking Places 44,439 45,676 49,203 53,987 Building Materials 30,524 35,792 38,588 44,256 Auto Dealers and Supplies 5,275 3,020 3,338 3,669 Service Stations 51,993 57,935 72,457 71,032 Other Retail Stores 49,654 55,591 60,830 59,866 All Other Outlets 71,384 73,584 77,560 75,601 Total $ 334,146 $ 351,156 $ 379,054 $ 388,726
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.
-165- 273 February 3, 2020, City Council Meeting Page No. 266
continued
2013 2014 2015 2016 2017 2018 $ 14,278 $ 13,622 $ 14,534 $ 19,571 $ 19,213 $ 19,915 50,688 49,988 50,121 49,782 49,920 51,652 13,723 14,325 14,486 15,787 17,348 17,234 56,797 62,099 67,351 70,581 72,652 74,665 49,537 62,298 70,785 57,063 65,687 69,767 3,687 4,324 3,807 4,468 5,576 4,984 64,083 57,301 50,458 42,244 43,464 48,220 60,476 62,152 63,656 63,724 64,765 60,909 73,633 80,718 92,034 104,210 102,393 99,190 $ 386,902 $ 406,827 $ 427,232 $ 427,430 $ 441,018 $ 446,536
-166- 274 February 3, 2020, City Council Meeting Page No. 267 City of La Verne Ratios of Outstanding Debt by Type Last Ten Fiscal Years
Governmental Activities Certificates of Fiscal Participation and Revenue Pension Notes Year Lease Agreement Bonds Bonds1 Payable Total 2009-10 $ 2,567,000 $ 7,305,000 $ 7,135,000 $ 3,151,355 $ 20,158,355 2010-11 2,338,000 7, 070,000 6,705,000 3, 035,280 19,148,280 2011-12 - 6,820,000 6,225,000 - 13,045,000 2012-13 - 6,550,000 5,690,000 - 12,240,000 2013-14 - 6,260,000 5,095,000 - 11,355,000 2014-15 - 5,955,000 4,435,000 - 10,390,000 2015-16 - 5,625,000 3,710,000 - 9,335,000 2016-17 - 5,275,000 - - 5,275,000 2017-18 - 4,900,000 - - 4,900,000 2018-19 - 4,495,000 49,050,134 - 53,545,134
1 The City issued $8,380,000 of pension bonds in 2006, which were fully paid in fiscal 2015-16. The City issued $54,265,000 of pension bonds in 2018-19. 2 These ratios are calculated using personal income and population for the prior calendar year. 3 State legislation resulted in the Redevelopment Agency being dissolved on February 1, 2012. Liabilities of the former Redevelopment Agency have been transferred to the Successor Agency in a private-purpose trust fund. 4 The Capital Lease related to water rights resulted from an agreement entered into with the Three Valleys Municipal Water District in November of 1984 to construct a water treatment facility. The original agreement was refinanced with the issuance Certificates of Participation in October of 2003. The City’s portion of the financing had an initial principal amount of $6,974,530 with rates ranging from 2.5 to 4.25%. The Certificates of Participation were paid in full in the fiscal year ending June 30, 2013.
Notes: Details regarding the City’s outstanding debt can be found in the notes to the financial statements.
-167- 275 February 3, 2020, City Council Meeting Page No. 268
continued Business-type Activities Total Percentage Capital Lease - Pension Primary of Personal Water Rights4 Bonds1 Total Government Income2 $ 3,057,980 - $ 3,057,980 $ 23,216,335 1.71% 2,327,006 - 2,327,006 21,475,286 1.65% 1,576,568 - 1,576,568 14,621,568 1.09% 800,179 - 800,179 13,040,179 0.89% - - - 11,355,000 0.76% - - - 10,390,000 0.64% - - - 9,335,000 0.85% - - - 5,275,000 0.48% - - - 4,900,000 0.40% - 5,214,866 5,214,866 58,760,000 0.40%
-168- 276 February 3, 2020, City Council Meeting Page No. 269 City of La Verne Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years
Oustanding General Bonded Debt Certificates of Percent of Debt Fiscal Participation and Pension Assessed Per Year Lease Agreement Bonds Total Value1 Capita2 2009-10 $ 2,567,000 $ 7,135,000 $ 9,702,000 0.30% 285 2010-11 2,338,000 6,705,000 9,043,000 0.28% 290 2011-12 - 6,225,000 6,225,000 0.19% 198 2012-13 - 5,690,000 5,690,000 0.14% 158 2013-14 - 5,095,000 5,095,000 0.15% 158 2014-15 - 4,435,000 4,435,000 0.12% 134 2015-16 - 3,710,000 3,710,000 0.10% 112 2016-17 - - - 0.00% - 2017-18 - - - 0.00% - 2018-19 - 54,265,000 54,265,000 1.16% 1,634
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2 These ratios are calculated using population data for the prior calendar year. 3 State legislation resulted in the Redevelopment Agency being dissolved in February 1, 2012. Liabilities of the former Redevelopment Agency have been transferred to the Successor Agency in a private-purpose trust fund.
-169- 277 February 3, 2020, City Council Meeting Page No. 270 City of La Verne Direct and Overlapping Debt June 30, 2019
City Assessed Valuation $ 2,761,226,874 Redevelopment Agency Incremental Valuation 1,933,233,215 Total Assessed Valuation $ 4,694,460,089 City's Outstanding Share of Percentage Debt 6/30/18 Overlapping Overlapping debt: Applicable1 (in thousands) Debt Metropolitan Water District 0.239%$ 23,317 $ 55,759 Citrus Community College District 0.183% 89,361 163,357 Mount San Antonio Community College District 5.024% 640,417 32,176,618 Bonita Unified School District 46.485% 119,875 55,723,295 Claremont Unified School District 0.912% 74,015 675,145
Total overlapping debt: 946,985 88,794,174
City of La Verne direct debt at 6/30/18 58,760,000
Total direct and overlapping debt $ 147,554,174
Notes: 1 For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit’s taxable assessed value that is within the City’s boundaries and dividing it by each unit’s total taxable assessed value.
Overlapping governments are those that coincide, at least in part, within the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and business of the City. This process recognizes that, when considering the City’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source: HdL Companies
-170- 278 February 3, 2020, City Council Meeting Page No. 271 City of La Verne Legal Debt Margin Information Last Ten Fiscal Years
Fiscal Year 2010 2011 2012 2013 Debt limit $ 121,289,057 $ 121,363,878 $ 123,399,505 $ 126,287,874
Total net debt applicable to limit - - - -
Legal debt margin $ 121,289,057 $ 121,363,878 $ 123,399,505 $ 126,287,874
Total net debt applicable to limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00%
Legal Debt Margin Calculation for Fiscal Year 2019
Assessed Value $ 4,694,460,089
Debt limit (3.75% of assessed value) 176,042,253 Debt applicable to limit: General obligation bonds - Legal debt margin $ 176,042,253
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with fiscal year 1981-82, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the stationary debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit of the State’s establishment of the limit.
Source: City Finance Division Los Angeles County Assessor’s Office
-171- 279 February 3, 2020, City Council Meeting Page No. 272
continued Fiscal Year 2014 2015 2016 2017 2018 2019 $ 129,034,233 $ 135,351,562 $ 139,926,444 $ 152,334,149 $ 161,669,081 $ 176,042,253
------
$ 129,034,233 $ 135,351,562 $ 139,926,444 $ 152,334,149 $ 161,669,081 $ 176,042,253
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
-172- 280 February 3, 2020, City Council Meeting Page No. 273 City of La Verne Pledged-Revenue Coverage Last Ten Fiscal Years (In Thousands)
1996 Revenue Bonds Available Mobile Less Net Fiscal Tax Increment Home Park Operating Available Debt Service2 Year Revenue1 Revenues Expenses Revenue Principal Interest Coverage 2009-10$ 497 $ 1,167 535$ 1,129$ 220$ 533$ 1.50 2010-11 496 1,165 509 1,152 235 517 1.53 2011-12 350 1,173 536 987 250 500 1.32 2012-13 350 1,220 563 1,007 270 482 1.34 2013-14 350 1,236 592 994 290 462 1.32 2014-15 350 1,336 616 1,070 305 441 1.43 2015-16 350 1,424 650 1,124 330 419 1.50 2016-17 350 1,322 665 1,007 350 395 1.35 2017-18 350 1,376 700 1,026 375 369 1.38 2018-19 350 1,395 850 895 375 369 1.20
Notes: 1 Property Tax Increment revenues available under the pledge indenture from the Low and Moderate Income Housing Fund are limited to approximately 66% of the bonds annual debt service costs. 2 Mobile Home Park Revenues consist of space rental income, utility income and other miscellaneous income. 3 State legislation resulted in the Redevelopment Agency being dissolved on February 1, 2012. The State Department of Finance is currently only recognizing the minimum annual pledge of $350,000 and not the additional stand by portion as allowed in the bond indenture. 4 Details regarding the City’s outstanding revenue bonds can be found in the Notes to the Financial Statements.
-173- 281 February 3, 2020, City Council Meeting Page No. 274 City of La Verne Demographic and Economic Statistics Last Ten Calendar Years
Personal Per Capita Calendar Income Personal Unemployment Year Population (in thousands)1 Income2 Rate3 2009 34,051 $ 1,357,886 $ 39,878 6.7% 2010 31,153 1,301,915 41,791 7.2% 2011 31,461 1,339,106 42,564 6.4% 2012 32,041 1,467,477 45,800 6.3% 2013 32,228 1,499,568 46,530 5.7% 2014 32,241 1,054,152 32,696 6.3% 2015 33,200 1,098,713 33,093 5.1% 2016 33,174 1,102,209 33,225 4.0% 2017 33,260 1,154,887 34,722 3.6% 2018 33,201 1,233,250 37,144 4.4% Data was provided by HdL Companies
1 State Department of Finance. 2 Bureau of Economic Analysis (data based on County averages). 3 State of California Employment Development Department.
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283 February 3, 2020, City Council Meeting Page No. 276 City of La Verne Principal Employers June 30, 2019
2019 Number of Percent of Employer Employees Total
Bonita Unified School District 409 15.02% University of La Verne 511 18.77% Metropolitan Water District 397 14.58% Brethren Hillcrest Homes 281 10.32% City of La Verne 241 8.85% Target 204 7.49% Gilead Sciences, Inc. 213 7.82% Kohls 143 5.25% Vons 143 5.25% Novipax 101 3.71% Stater Brothers 80 2.94%
2,723 100.00%
2010 Number of Percent of Employer Employees Total
Bonita Unified School District 365 17.64% University of La Verne 330 15.95% Metropolitan Water District 320 15.47% Brethren Hillcrest Homes 245 11.84% City of La Verne 200 9.67% Target 174 8.41% Gilead Sciences, Inc. 130 6.28% Kohls 120 5.80% Vons 100 4.83% Novipax 85 4.11%
2,069 100.00%
The percent of total reported above represents the percent of total of only the employers listed for the year, not a percentage of the City’s total labor force.
Source: City Finance Division
-175- 284 February 3, 2020, City Council Meeting Page No. 277 City of La Verne Full-time City Employees by Function Last Ten Fiscal Years
2010 2011 2012 2013 2014
General government 9 8 8 8 8
Public Safety: Fire 36 36 36 36 36 Police 66 61 59 59 57
Community development 2 1 2 5 5
Public works 40 46 45 46 46
Community services 12 3 3 3 3
Redevelopment agency/ Successor Agency 9 8 6 2 2
Total 174 163 159 159 157
Source: City Finance Division
-176- 285 February 3, 2020, City Council Meeting Page No. 278
continued 2015 2016 2017 2018 2019
8 11 11 12 13
36 36 36 36 36 60 64 64 64 59
6 7 7 7 7
46 46 47 47 47
3 3 3 3 4
2 1 1 1 1
161 168 169 170 167
-177- 286 February 3, 2020, City Council Meeting Page No. 279 City of La Verne Operating Indicators by Function Last Ten Fiscal Years
2010 2011 2012 2013 2014 Police: Calls for service 17,615 16,040 16,784 17,219 16,488 Arrests 1,300 1,185 1,182 1,262 1,296
Fire: Number of emergency calls 2,741 2,808 2,907 2,302 3,154 Inspections 794 778 772 774 838
Community services: Number of recreation classes 160 360 420 420 420 Number of facility rentals 270 130 80 88 104
Water: Mainline repairs 7 6 5 6 4 Average daily consumption (in thousand gallons) 8,150 7,400 6,900 6,600 7,322
Sewer: Sanitary lines cleaned (feet) 549,000 300,000 300,000 300,000 450,000 Storm lines cleaned (feet) 15,600 15,900 15,800 15,700 15,800
Community development: Building permits issued 326 394 325 537 657 Building permit valuations (in thousands) 11,471 27,780 22,549 25,147 40,515
General government: Business license contacts 2,200 1,827 1,845 2,289 2,419
Source: Various City Departments
-178- 287 February 3, 2020, City Council Meeting Page No. 280
continued Fiscal Year 2015 2016 2017 2018 2019
17,200 19,029 21,709 23,482 20,753 1,300 1,449 1,636 1,403 1,003
3,320 3,325 3,611 3,792 3,505 850 740 889 988 841
440 420 440 445 445 109 95 92 95 93
5 15 8 12 8
7,161 5,550 6,087 6,087 6,379
450,000 450,000 450,000 450,000 145,000 15,800 15,800 15,800 15,800 15,800
710 500 538 540 511
16,544 81,422 32,108 43,809 28,642
2,452 2,463 2,100 2,470 2,500
-179- 288 February 3, 2020, City Council Meeting Page No. 281 City of La Verne Capital Asset Statistics by Function Last Ten Fiscal Years
Fiscal Year 2010 2011 2012 2013 2014 Police: Police stations 1 1 1 1 1
Fire: Fire Stations 3 3 3 3 3
Public works: Streets (miles) 98 98 98 98 98 Alleys (miles) 14 14 14 14 14 Sidewalks (miles) 205 205 205 205 205 Traffic signals 22 22 22 22 22 Parks 19 19 19 19 19
Community services: Community centers 2 2 2 2 2
Water: Water mains (miles) 140 140 140 140 140 Fire hydrants 1,080 1,080 1,080 1,080 1,080 Number of reservoirs 13 13 13 13 13 Maximum daily capacity (in thousands of gallons) 27,000 27,000 27,000 27,000 27,000
Sewer: Sanitary sewers (miles) 92 92 92 92 92 Storm sewers (miles) 19 19 19 19 19
Source: Various City Departments
-180- 289 February 3, 2020, City Council Meeting Page No. 282
continued Fiscal Year 2015 2016 2017 2018 2019
1 1 1 1 1
3 3 3 3 3
98 98 98 98 98 14 14 14 14 14 205 205 205 205 205 22 25 27 27 27 19 19 19 19 19
2 2 2 2 2
140 140 184 184 184 1,090 1,090 1,507 1,507 1,507 13 13 13 13 13
27,000 27,000 27,000 27,000 27,000
92 92 140 140 140 19 19 34 34 34
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291 February 3, 2020, City Council Meeting Page No. 284
Housing Successor Fund of the City of La Verne Addendum to the Annual Progress Report For Fiscal Year Ended June 30, 2019
292 February 3, 2020, City Council Meeting Page No. 285
Independent Accountant’s Disclaimer Report Applied to the Preparation of the Addendum to the Annual Progress Report of the Housing Successor of the City of La Verne
To Management of the Housing Successor of the City of La Verne La Verne, California
We have prepared the accompanying Addendum to the Annual Progress Report (“Addendum to the APR”) of the Housing Successor of the City of La Verne (“Housing Successor”) as of June 30, 2019 and for the year then ended in accordance with the reporting provisions of the California Health & Safety Code Section 34176.1 as amended by Senate Bill 341 (Chapter 796, Statues of 2013, effective January 2014) (“SB341”), and as amended by Senate Bill 107 (Chapter 325, Statutes of 2015, effective January 2016) HSC Section 34176.1(f).
The accompanying Addendum to the APR of the Housing Successor of the City of La Verne (“Housing Successor”) as of June 30, 2019 and for the year then ended was not subjected to an audit, review, or compilation engagement by us and, accordingly, we do not express an opinion, conclusion, nor provide any assurance on it.
This Addendum to the APR is intended solely for the information and use of management of the Housing Successor of the City of La Verne, and is not intended to be and should not be used by anyone other than this specified party.
San Bernardino, California December 26, 2019
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Housing Successor of the City of La Verne Addendum to the Annual Progress Report For Fiscal Year Ended June 30, 2019
1) The amount the city, county, or city and county received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4.
The Housing Successor Fund received $200,000 pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4 for the fiscal year ended June 30, 2019.
2) The amount deposited to the Low and Moderate Income Housing Asset Fund, distinguishing any amounts deposited for items listed on the Recognized Obligation Payment Schedule from other amounts deposited.
The Housing Successor Fund deposited $200,000 to the Low and Moderate Income Housing Asset Fund for the fiscal year ended June 30, 2019. The entire amount was deposited for items listed in the Recognized Obligation Payment Schedule.
3) A statement of the balance in the fund as of the close of the fiscal year, distinguishing any amounts held for items listed on the Recognized Obligation Payment Schedule from other amounts.
The balance in the Housing Successor Fund as of June 30, 2019, was $3,114,634 none of which was held for items listed on the Recognized Obligation Payment Schedule.
4) A description of expenditures from the fund by category, including, but not limited to, expenditures
a. for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in paragraphs (2) and (3) of subdivision (a),
The Housing Successor Fund had no expenditures related to monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in paragraphs (2) and (3) of subdivision (a), for the fiscal year ended June 30, 2019.
b. for homeless prevention and rapid re-housing services for the development of housing described in paragraph (2) of subdivision (a),and
The Housing Successor Fund had no expenditures related to homeless prevention and rapid re-housing services for the fiscal year ended June 30, 2019.
c. for the development of housing pursuant to paragraph (3) of subdivision (a).
The Housing Successor Fund had no expenditures related to the development of housing for the fiscal year ended June 30, 2019.
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5) As described in paragraph (1) of subdivision (a), the statutory value of real property owned by the housing successor, the value of loans and grants receivable, and the sum of these two amounts.
The statutory value of real property owned by the Housing Successor Fund as of June 30, 2019, was $679,343. The value of the loans and grants receivable held by the Housing Successor Fund was $2,110,000. The sum of the statutory value of real property owned by the Housing Successor Fund and the value of loans and grants receivable is $2,789,343.
6) A description of any transfers made pursuant to paragraph (2) of subdivision (c) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service.
No transfers occurred pursuant to paragraph (2) of subdivision (c) in the previous fiscal year or earlier fiscal years in the Housing Successor Fund.
7) A description of any project for which the housing successor receives or holds property tax revenue pursuant to the Recognized Obligation Payment Schedule and the status of that project.
The Housing Successor Fund received no such property tax revenue during the fiscal year ended June 30, 2019, and did not hold any such property tax as of June 30, 2019.
8) For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with Section 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project.
As of June 30, 2019, the Housing Successor Fund’s real property interests were as follows:
Status on Compliance Property Description Parcel Number Year of Acquisition Value with 33334.16
Vacant Land APN: 8666-038-918 2007 $ 125,441 In Compliance Vacant Land APN: 8378-007-907 2008 252,015 In Compliance Vacant Land APN: 8666-045-927 2008 9,540 In Compliance Vacant Land APN: 8378-007-908 2009 292,347 In Compliance
Total Housing Assets $ 679,343
As of June 30, 2019, the Housing Successor Fund did not hold any property acquired after February 1, 2012.
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9) A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor's progress in meeting those obligations, and of the housing successor's plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet Web site the implementation plans of the former redevelopment agency.
As of June 30, 2019, there were no outstanding obligations pursuant to Section 33413 that remained to be transferred to the Housing Successor Fund on February 1, 2012.
10) The information required by subparagraph (B) of paragraph (3) of subdivision (a).
As of June 30, 2019, the Housing Successor Fund is in compliance with the requirements of subparagraph (B) of paragraph (3) of subdivision (a).
11) The percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the same time period.
As of June 30, 2019, the Housing Successor Fund had 0% of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the same time period.
12) The amount of any excess surplus, the amount of time that the successor agency has had excess surplus, and the housing successor's plan for eliminating the excess surplus.
The Housing Successor Fund did not have any excess surplus as of June 30, 2019, or at any point during the fiscal year.
13) An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency's investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3. This inventory shall include all of the following information:
a. The number of those units.
The Housing Successor Fund did not have any inventory of homeownership units assisted by the former redevelopment agency or the housing successor as of June 30, 2019, or at any point during the fiscal year.
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b. In the first report pursuant to this subdivision, the number of units lost to the portfolio after February 1, 2012, and the reason or reasons for those losses. For all subsequent reports, the number of the units lost to the portfolio in the last fiscal year and the reason for those losses.
This item is not applicable to the Housing Successor for Fiscal Year Ended June 30, 2019.
c. Any funds returned to the housing successor as part of an adopted program that protects the former redevelopment agency's investment of moneys from the Low and Moderate Income Housing Fund.
This item is not applicable to the Housing Successor for Fiscal Year Ended June 30, 2019.
d. Whether the housing successor has contracted with any outside entity for the management of the units and, if so, the identity of the entity.
The Housing Successor Fund has contracted Haven Management for the management of the units.
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