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06/23/2020CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● JUNE 23, 2020 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 PUBLIC ADVISORY: THE COUNCIL CHAMBER IS NOW OPEN TO THE PUBLIC!! Beginning June 15, 2020, the City of Grand Terrace will reopen its public meetings. Therefore, the regular meeting of the City Council for June 23, 2020 is now open to the public. Please be advised that face masks are required, social distancing will be practiced, and occupancy limits will be enforced. Please note that Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, the regular meeting of the City Council for June 23, 2020 will also be conducted telephonically through Zoom and broadcast live on the City’s website. COMMENTS FROM THE PUBLIC The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, you are invited to provide your name to the City Clerk who will be compiling a list of speakers. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time. If you would like to participate telephonically and speak on an agenda item, you can access the meeting by dialing the following telephone number and you will be placed in the waiting room, muted until it is your turn to speak: *67 1-669-900-9128 Enter Meeting ID: 872 9500 8020 Password: 893490 The City wants you to know that you can also submit your comments by email to ccpubliccomment@grandterrace-ca.gov. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 824-6621 by 5:00 p.m. If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words). Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting. PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterrace-ca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 824-6621 x230, or via e-mail at dthomas@grandterrace-ca.gov. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov. Agenda Grand Terrace City Council June 23, 2020 City of Grand Terrace Page 2 AMERICANS WITH DISABILITIES ACT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 824-6621 x230 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible. CALL TO ORDER Convene City Council Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Doug Wilson    Council Member Sylvia Robles    Council Member Bill Hussey    Council Member Jeff Allen    A. SPECIAL PRESENTATIONS - NONE B. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA C. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 05/26/2020 DEPARTMENT: CITY CLERK 3. Approval of Minutes – Regular Meeting – 06/09/2020 Agenda Grand Terrace City Council June 23, 2020 City of Grand Terrace Page 3 DEPARTMENT: CITY CLERK 4. Attachment to Minutes - 06/09/2020 DEPARTMENT: CITY CLERK 5. Approval of the September-2019 Check Register in the Amount of $208,279.16 RECOMMENDATION: Approve Check Register No. 09302019 in the amount of $208,279.16 as submitted, for the period ending September 30, 2019. DEPARTMENT: FINANCE 6. Treasurer's Report as of December 31, 2019 RECOMMENDATION: Receive and file the Treasurer's Report for the period ending December 31, 2019. DEPARTMENT: FINANCE 7. Treasurer's Report as of March 31, 2020 RECOMMENDATION: Receive and file the Treasurer's Report for the period ending March 31, 2020. DEPARTMENT: FINANCE 8. Auditor's Annual Financial Report for the Fiscal Year Ended June 30, 2019 RECOMMENDATION: Receive and file the Auditor’s Annual Financial Report and related documents for the fiscal year ended June 30, 2019. DEPARTMENT: FINANCE 9. Approval of Annual Appropriations Limit for Fiscal Year 2020-21, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 3.73% as the Price Factor for the Fiscal Year 2020-21 Appropriations Limit Calculation; and (2) Approve the selection of the Change in County of San Bernardino Population of 0.52% as the Population Change Factor for the Fiscal Year 2020-2021 Appropriations Limit Calculation; and (3) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2020-21, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION. DEPARTMENT: FINANCE Agenda Grand Terrace City Council June 23, 2020 City of Grand Terrace Page 4 D. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. E. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Bill Hussey Council Member Sylvia Robles Mayor Pro Tem Doug Wilson Mayor Darcy McNaboe F. PUBLIC HEARINGS 10. Zoning Code Amendment 20-01 and Specific Plan 20-01 to Amend Title 18 of the Grand Terrace Municipal Code and Barton Road Specific Plan to Regulate Uses Proposing Hours of Operation Any Time Between 11:00 P.M. and 6:00 A.M., and a Related Environmental Determination Pursuant to CEQA Regulation Section 15061(B)(3) RECOMMENDATION: 1) Conduct a public hearing, and 2) Direct The City Attorney To Read The Title Of The Ordinance, Waive Further Reading, And Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA FINDING THAT ZONING CODE AMENDMENT 20-01 AND BARTON ROAD SPECIFIC PLAN AMENDMENT 20-01 ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15061(B)(3) AND AMENDING CHAPTER 18.06 (DEFINITIONS), CHAPTER 18.33 (C2 GENERAL BUSINESS DISTRICT) SECTION 18.33.020 (PERMITTED USES) AND SECTION 18.33.030 (CONDITIONAL PERMITTED USES) OF TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE AND AMENDING BARTON ROAD SPECIFIC PLAN (TABLE I, LAND USE MATRIX) TO ESTABLISH REQUIREMENTS FOR BUSINESSES PROPOSING TO OPERATE AT ANY TIME BETWEEN 11:00 PM AND 6:00 AM. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES Agenda Grand Terrace City Council June 23, 2020 City of Grand Terrace Page 5 G. UNFINISHED BUSINESS 11. Approval of Priorities Project List for Fiscal Year 2020-2021 RECOMMENDATION: Approve Priority Project List for Fiscal Year 2020-2021 per May 28, 2020 City Council Workshop DEPARTMENT: CITY MANAGER H. NEW BUSINESS 12. Public Workshop to Introduce Requirements for Vehicle Miles Traveled Thresholds and Local Guidelines for Implementing the California Environmental Quality Act RECOMMENDATION: Conduct a Public Workshop to Introduce Requirements for Vehicle Miles Traveled Thresholds and Local Guidelines for Implementing the California Environmental Quality Act DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 13. Re-Appoint Planning Commissioners or Schedule Interviews with All Applicants RECOMMENDATION: Staff recommends that the City Council: Select Option 1: 1. Re-appoint the existing Planning Commissioners Ceseña and Alaniz to their appointed positions, OR Select Option 2: 2. Staff will schedule interviews with all candidates at the Regular Meeting of the City Council on July 14, 2020. DEPARTMENT: CITY CLERK 14. Adoption of the Fiscal Year 2020-2021 Budget RECOMMENDATION: Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2020-2021. DEPARTMENT: FINANCE Agenda Grand Terrace City Council June 23, 2020 City of Grand Terrace Page 6 15. Consideration of Resolutions Initiating Proceedings to Levy Annual Assessments for Fiscal Year 2020-2021 for the City of Grand Terrace Landscape & Lighting Assessment District 89-1; Preliminarily Approving the Related Engineer’s Report; and Declaring Its Intention to Conduct a Public Hearing on July 14, 2020 and to Levy and Collect Annual Assessments Related Thereto RECOMMENDATION: 1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2020-2021 FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT; AND 2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE ENGINEERS REPORT FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2020-2021; AND 3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JULY 14, 2020, ON LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2020-2021 DEPARTMENT: PUBLIC WORKS 16. Request County of San Bernardino Board of Supervisors Allocate at Least 10% of Its $38,000,000 in CARES Act Coronavirus Relief Funding to the 24 Local Municipal Governments Within the County on a Per Capita Basis RECOMMENDATION: Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REQUESTING THE SAN BERNARDINO COUNTY BOARD OF SUPERVISORS ALLOCATE AT LEAST 10% OF THE $380,000,000 IT RECEIVED IN CARES ACT CORONAVIRUS RELIEF FUNDING TO THE 24 MUNICIPAL GOVERNMENTS WITHIN SAN BERNARDINO COUNTY DEPARTMENT: CITY MANAGER I. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL Pursuant to City Council policy set forth in the 2030 Vision and 2014 ‐2020 Strategic Plan, if a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the item will be agendized to ask the City Council if time should be spent on preparing a report on the proposed item. In Agenda Grand Terrace City Council June 23, 2020 City of Grand Terrace Page 7 accordance with this policy, this is the opportunity for City Council Members to request that an item be placed on a future agenda and authorize staff to prepare an agenda report. To ensure compliance with the Brown Act, the request shall be submitted to the City Manager at least one week in advance of the meeting so that the topic can be included on the agenda under this section. In order for any listed item to be placed on a future agenda, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the requirements of the Brown Act, no other items may be considered other than those listed below. 1. Regional Joint Powers Policing Authority Requested by: Mayor Darcy McNaboe 2. Increase Fines for Illegal Fireworks Requested by: Council Member Bill Hussey J. CITY MANAGER COMMUNICATIONS K. CLOSED SESSION - NONE L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, July 14, 2020 at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office and the request will be processed in accordance with Council Procedures. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● MAY 26, 2020 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Darcy McNaboe convened the Regular Meeting of the City Council for Tuesday, May 26, 2020. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Darcy McNaboe. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Doug Wilson Mayor Pro Tem Remote Sylvia Robles Council Member Remote Bill Hussey Council Member Present Jeff Allen Council Member Present G. Harold Duffey City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Alan French Senior Civil Engineer Remote Steven Weiss Planning & Development Services Director Remote Cynthia A. Fortune Assistant City Manager Remote A. RECESS TO CLOSED SESSION Mayor McNaboe recessed the regular meeting of City Council at 6:08 p.m. CLOSED SESSION 1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, pursuant to Section 54957.6 Title: City Manager 2. CONFERENCE WITH LABOR NEGOTIATORS, pursuant to Government Code Section 54957.6 Agency Designated Representatives: G. Harold Duffey, City Manager Cynthia Fortune, Assistant City Manager Adrian R. Guerra, City Attorney C.2 Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 2 Colin Tanner, Deputy City Attorney Employee Organization: Teamsters Local 1932 Unrepresented Employees: City Manager, Assistant City Manager, City Clerk, Senior Civil Engineer, Director of Planning & Development Services, Management Analyst, (Two Positions), Assistant Planner RECONVENE TO OPEN SESSION Mayor McNaboe reconvened the regular meeting of City Council at 6:53 p.m. REPORT OUT OF CLOSED SESSION Agenda Item A.1 - Mayor McNaboe announced there was no reportable action and direction was provided to staff to bring the item back to the City Council’s special meeting scheduled Thursday, May 28, 2020 at 6:00 p.m. Agenda Item A.2 - Mayor McNaboe announced there was no reportable action. B. SPECIAL PRESENTATIONS - NONE C. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA G. Harold Duffey, City Manager announced that Agenda Item. No. I.6 will be heard before Agenda Item No. I.5 under New Business. D. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 1. Waive Full Reading of Ordinances on Agenda 2. Approval of Minutes – Regular Meeting – 05/12/2020 3. Attachment to Minutes - 05/12/2020 C.2 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 3 4. Agreement for Participation in the San Bernardino County Sheriff Department's Work Release Program STAFF RECOMMENDS APPROVAL OF AGREEMENT FOR PARTICIPATION IN SAN BERNARDINO COUNTY SHERIFF DEPARTMENT'S WORK RELEASE PROGRAM E. PUBLIC COMMENT Jeremy Rivera, Grand Terrace expressed his concern with illegal fireworks in the City. Janese Makshanoff, Grand Terrace expressed concern with a public notice she received regarding the Planning Commission’s May 21, 2020 meeting and she stated nowhere on the notice did it state she could not physically attend. She also expressed her concern regarding the anonymous complaint filed against two of the Planning Commissioners and requests that an investigation be conducted, and new procedures put in place. Lisa Wadley, Grand Terrace expressed her concern with illegal fireworks in the City, as well as the effects it has on the City’s veterans and pets and lack of enforcement. F. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Jeff Allen attended the meeting of the Planning Commission - Site and Architectural Review Board on May 21, 2020 via Zoom to observe. He encouraged the City Council to also occasionally observe the City’s boards and commissions to make sure the performance meets the City Council’s expectations. He received a letter from a resident in the community who mentioned the integrity of the City’s boards and commissions and stated it was the worst the resident ever witnessed in 30 years. Council Member Bill Hussey Council Member Bill Hussey commented on the fact that this was the first time there was no Memorial Day observance in the City for veterans and wanted to wish comfort and prayer to those families with veterans who died on the battlefield and decades later due to PTSD. He attended an Executive Board meeting on Zoom where discussion was held regarding layoffs amidst budget restraints for many cities. The League of California Cities is asking the Governor for assistance to all cities. Council Member Sylvia Robles Council Member Sylvia Robles attended two webinars as follows: C.2 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 4 May 21, 2020 Inland Empire Economic Partnership for Local Municipal Leaders: • Various leaders spoke about the numbers of unemployment expected; all were in the high 20s. • Ontario Airport had shut down 95% of its capacity. • It was a robust discussion about focusing on the rebound and working our way out of this through economic development May 22, 2020 Council of Foreign Relations had Laurie Garrett who is a science journalist and former senior fellow on global health and gave a very focused discussion on COVID and the testing, transmission and laid a lot of fears away for government officials on how to go forward on this. She believes with the Governor’s action today; we will see our way out of this. As a personal observation, it seems if we do not have another outbreak as disabling as this one was, we might hit Chris Thornberg’s, from Beacon’s Economics, U-curve where we quickly rebound from this although, the effects will be for a few years. Next week the League of California Cities is having a Zoom meeting on Revenue and Taxation and she will bring that information back at the next meeting. Mayor Pro Tem Doug Wilson Mayor Pro Tem Doug Wilson finds it interesting that individuals decide to still hold parties that think it is worth their lives to stretch the envelope in relation to possible illness and spread the illness even further. Back in history we knew the solution to the situation however ignored it. Coming out of an agricultural society and becoming an industrialized society, we are not spread out enough to handle this type of situation. Mayor Pro Tem Wilson takes umbrage with fellow City Councilman’s comments and asks the City Attorney to weigh in. His idea was also to monitor the different committees. He does not think the City committees are as bleak as everybody likes to make them out to be, but it is usually as a result of people who are uninformed. He asked the City Attorney if it is normal policy for Council Members to regularly attend all of the various auxiliaries and is there some kind of potential for conflict of interest. Adrian Guerra, City Attorney stated that most Councils do not attend Planning Commission meetings, Public Works Commission meetings, those sort of things. They monitor them usually through the minutes for each of the meetings which are presented to the Council and if a Council Member has a certain item of interest, they will look at that meeting. City Attorney Guerra stated he has heard from other cities if a Council Member attends a meeting and a project presented may have more importance, the Council Member’s presence puts more pressure on the Commission to do a good job. There is no prohibition from Council Members attending meetings. The key is for a Council Member to not participate in a meetings as an item could be appealed to the City Council. C.2 Packet Pg. 11 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 5 Mayor Pro Tem Wilson stated when the City starts talking about the State backfilling monies and revenues and funds that have been lost to the localities, that is a pipe dream. The State has already stated how far in the hole it is, as well as at the federal level having the same problem. The City’s best path is to work our way out of the circumstance like we always do but be careful and not get sick in the process. Mayor Darcy McNaboe Mayor Darcy McNaboe attended the following: San Bernardino County Transportation Authority General Policy Committee meeting and discussed the following: • End of year issues, as well as COVID-19 related information • Award Contract to PFM for Financial Advisor Service • Procurement Policy Update • Adoption of Confidentiality Policy • Biennial Review and Amendment of Conflict of Interest Code • Freeway Service Patrol Beats – Contract Amendments • Request for Proposals for SBCTA’s State Advocacy Services San Bernardino County Transportation Authority Metro Valley Study Session • Measure I Valley Major Street Projects Program – with COVID-19 sales tax revenues will be lower meaning Measure I funding will be lower and it was requested that the Arterial Sub-Program allocation be backfilled from years past revenues that have not been spent. There is an opportunity for Arterial Sub- Program revenue collected through FY 2018-19 to backfill the FY 2020-21 allocation reduction. • Approve a 15-year allocation adjustment strategy to immediately allocate remaining unallocated Valley Major Street Projects Program revenue collected through FY 2018-19. Weekly meeting held with the County Board of Supervisors Chair; Curt Hagman shared the following information: • Restaurants given the go ahead to open beyond just the delivery and to go orders. Social distancing guidelines must be followed. • Barbershops and hair salons are allowed to open following guidelines for a safe opening. • Phase 3 nail salons, tattoo shops and others have not yet been addressed. • County is working on ways to provide cooling centers. • County is scheduled to open on June 1, 2020. The Veteran’s Wall of Freedom Committee was unable to hold a ceremony on Memorial Day for those servicemembers who gave the ultimate sacrifice, however they did allow for the families who have plaques that went up between Veteran’s Day and Memorial C.2 Packet Pg. 12 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 6 Day. Scheduled times were provided to view those plaques with their families. Taps was played at 11:30 by Harry Holmes. The City was treated to (being in the path of) the flyovers of the vintage military planes at noon. She thanked the Veterans Wall of Freedom Committee for making sure that plaques still went up and those families were able to see them. Veteran’s Freedom Park is open as a passive park; therefore, people can go and pay their respects. G. PUBLIC HEARINGS - NONE H. UNFINISHED BUSINESS - NONE I. NEW BUSINESS 6. Settlement Agreement Between the City of Grand Terrace and Teamsters Local 1932 Cynthia Fortune, Assistant City Manager gave the Power Point presentation for this item. APPROVE SETTLEMENT AGREEMENT BETWEEN THE CITY OF GRAND TERRACE AND TEAMSTERS LOCAL 1932. RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Mayor Pro Tem AYES: McNaboe, Wilson, Robles, Hussey, Allen 5. Consideration of Amendment No. 1 to Agreement with HR Green California for Inspection and Plan Check Services to Extend Term of Agreement to June 13, 2022 Alan French, Senior Civil Engineer gave the Power Point presentation for this item. 1. APPROVE AMENDMENT NO. 1 TO AGREEMENT WITH HR GREEN CALIFORNIA FOR INSPECTION AND PLAN CHECK SERVICES TO EXTEND TERM OF AGREEMENT TO JUNE 13, 2022. 2. AUTHORIZE THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1, SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM. RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen C.2 Packet Pg. 13 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 7 7. Commitment of Fund Balance for Fiscal Year 2019-2020 in Accordance with Governmental Accounting Standards Board Statement No. 54 and City Reserves Policy No. 3.06 Cynthia Fortune, Assistant City Manager gave the Power Point presentation for this item. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, COMMITTING FUND BALANCE FOR FISCAL YEAR 2019- 20 IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY RESERVES POLICY NO. 3.06 RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 8. First Amendment to the Promissory Note Issued on June 30, 2020 in the Amount of $875,000 Between the City of Grand Terrace - General Fund and the City of Grand Terrace - Waste Water Fund to Extend the Commencement Date for Payments & Maturity Date by 2 Years. Cynthia Fortune, Assistant City Manager gave the Power Point presentation for this item. APPROVE A FIRST AMENDMENT TO THE PROMISSORY NOTE ISSUED ON JUNE 30, 2020, IN THE AMOUNT OF $875,000 BETWEEN THE CITY OF GRAND TERRACE - GENERAL FUND AND THE CITY OF GRAND TERRACE - WASTE WATER FUND TO EXTEND THE COMMENCEMENT DATE FOR PAYMENTS & MATURITY DATE BY 2 YEARS. RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Mayor Pro Tem AYES: McNaboe, Wilson, Robles, Hussey, Allen 9. Twenty-Seventh Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to Provide Law Enforcement Services for Fiscal Year 2020-21 to the City of Grand Terrace Cynthia Fortune, Assistant City Manager gave the Power Point presentation for this item. Mayor McNaboe recessed the regular meeting of the City Council at 8:20 p.m. Mayor McNaboe reconvened the regular meeting of the City Council at 8:25 p.m. C.2 Packet Pg. 14 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 8 1. APPROVE THE TWENTY-SEVENTH AMENDMENT TO LAW ENFORCEMENT SERVICES CONTRACT NO. 94-797 WITH THE COUNTY OF SAN BERNARDINO TO PROVIDE LAW ENFORCEMENT SERVICES FOR FISCAL YEAR 2020-21; AND 2. AUTHORIZE THE CITY MANAGER TO EXECUTE THE CONTRACT. RESULT: APPROVED [4 TO 1] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Council Member AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen NAYS: Doug Wilson 10. Introduction of the FY2020-21 Proposed Budget G. Harold Duffey, City Manager and Cynthia Fortune, Assistant City Manager gave the Power Point presentation for this item. 1. REVIEW THE PROPOSED BUDGET FOR FISCAL YEAR 2020-21; AND 2. BEGIN BUDGET DELIBERATIONS FOR THE PROPOSED BUDGET FOR FISCAL YEAR 2020-21. RESULT: NO ACTION TAKEN 11. COVID-19 Update G. Harold Duffey, City Manager gave the Power Point presentation for this item. RECEIVE AND FILE UPDATE RESULT: NO ACTION TAKEN J. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL 1. Motion: San Bernardino International Airport Flight Patterns Requested by: Council Member Jeff Allen RESULT: ADOPTED [4 TO 1] MOVER: Jeff Allen, Council Member SECONDER: Sylvia Robles, Council Member AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen NAYS: Doug Wilson C.2 Packet Pg. 15 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 26, 2020 City of Grand Terrace Page 9 K. CITY MANAGER COMMUNICATIONS None. L. ADJOURN Mayor Darcy McNaboe closed the Regular Meeting of the City Council in memory of Laurene “Renee” Richmond. The Next Regular Meeting of the City Council will be held on Tuesday, June 9, 2020 at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra L. Thomas, City Clerk C.2 Packet Pg. 16 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 6 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● JUNE 9, 2020 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Darcy McNaboe convened the Regular Meeting of the City Council for Tuesday, June 9, 2020 at 6:00 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Darcy McNaboe. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Doug Wilson Mayor Pro Tem Remote Sylvia Robles Council Member Present Bill Hussey Council Member Present Jeff Allen Council Member Present G. Harold Duffey City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Alan French Senior Civil Engineer Remote Steven Weiss Planning & Development Services Director Remote Cynthia A. Fortune Assistant City Manager Remote C. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA Adrian Guerra, City Attorney removed Agenda Item A.1, Closed Session from the City Council agenda. A. RECESS TO CLOSED SESSION Pulled with no discussion. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS, pursuant to Government Code Section 54957.6 C.3 Packet Pg. 17 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 2 Agency Designated Representative: Adrian R. Guerra, City Attorney Unrepresented Employee: City Manager RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION B. SPECIAL PRESENTATIONS U.S. Census Bureau Update presented by Idell Stokes, Partnership Specialist Ms. Idell Stokes updated the City Council on the status of the City’s self-response to the U.S. Census 2020 questionnaire which is at 66.2%. The self-response questionnaire has been extended to October 31, 2020. Ms. Stokes emphasized the importance of working with the City to get the word out on its social media and websites to encourage those residents to participate in the self-response questionnaire. Webinars are being held online every Wednesday to show residents how to fill out the self-response questionnaire and provide assistance. D. CONSENT CALENDAR Council Member Jeff Allen pulled Agenda Item No. D.2 for discussion. RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 1. Waive Full Reading of Ordinances on Agenda 3. Attachments to Minutes - 05/26/2020 APPROVE THE ATTACHMENTS TO THE REGULAR MEETING MINUTES OF MAY 26, 2020 4. Approval of Minutes – Special Meeting Workshop – 05/28/2020 APPROVE THE SPECIAL MEETING WORKSHOP MINUTES OF MAY 28, 2020 5. Attachments to Minutes - 05/28/2020 APPROVE THE ATTACHMENTS TO THE SPECIAL MEETING WORKSHOP MINUTES OF MAY 28, 2020. C.3 Packet Pg. 18 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 3 6. October 24, 2019, December 12, 2019 & February 20, 2020 Planning Commission - Site and Architectural Review Board Meeting Minutes RECEIVE AND FILE. 7. Review of Local Conflict of Interest Code to Comply with the Political Reform Act 1. DIRECT STAFF TO REVIEW THE CITY'S CONFLICT OF INTEREST CODE FOR AMENDMENTS; AND 2. AUTHORIZE THE CITY MANAGER TO EXECUTE THE 2020 LOCAL AGENCY BIENNIAL REVIEW NOTICE INDICATING WHETHER AMENDMENTS ARE REQUIRED AND SUBMIT TO THE CITY COUNCIL NO LATER THAN OCTOBER 1, 2020. 8. Approval of February-2020, March-2020 and April-2020 Check Registers APPROVE THE FOLLOWING CHECK REGISTERS: 1. CHECK REGISTER NO. 02292020 IN THE AMOUNT OF $517,644.67 AS SUBMITTED, FOR THE PERIOD ENDING FEBRUARY 29, 2020; 2. CHECK REGISTER NO. 03312020 IN THE AMOUNT OF $416,400.89 AS SUBMITTED, FOR THE PERIOD ENDING MARCH 31, 2020; AND 3. CHECK REGISTER NO. 04302020 IN THE AMOUNT OF $293,841.90, AS SUBMITTED, FOR THE PERIOD ENDING APRIL 30, 2020. Council Member Jeff Allen requested corrections be made to his Council Comments and requested the minutes be brought back to the next Regular Meeting of the City Council. Mayor Darcy McNaboe directed the City Clerk to make those corrections and bring the item back. 2. Approval of Minutes – Regular Meeting – 05/26/2020 APPROVE THE REGULAR MEETING MINUTES OF MAY 26, 2020 PROVIDED DIRECTION TO STAFF E. PUBLIC COMMENT None. F. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Jeff Allen participated in the Black Lives Matter rally on the corner of Mt. Vernon and Barton Road. He was very proud of the approximately 80 individuals C.3 Packet Pg. 19 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 4 who exercised their 1st Amendment Right and peacefully protested. Council Member Bill Hussey Council Member Bill Hussey thanked the first responders and staff for maintaining law and order during the City’s recently enacted curfew. Council Member Sylvia Robles Council Member Sylvia Robles attended the League of California Cities Revenue and Taxation Committee meeting on Wednesday, June 3, 2020 and discussed the following: • Cities will receive funding from the State share of the CARES Act • The Board opposed the League of California Cities’ support for the split roll measure on the November ballot. • The Board endorsed the League’s support for the transfer of the base tax rate for over 55 and disabled to be uniform throughout all counties. Mayor Pro Tem Doug Wilson Mayor Pro Tem Doug Wilson reported illegal fireworks in the City and appreciated the follow up by the City’s first responders. He wanted to remind residents that it is fire season and that illegal fireworks causing fires in the City is no laughing matter. Mayor Darcy McNaboe Mayor Darcy McNaboe announced congratulations to Colton Mayor Frank Navarro who was elected to serve as the San Bernardino County Transportation Authority and Council of Governments President beginning July 1, 2020 and Julie McIntyre, Mayor of the City of Barstow who will serve as Vice-President. Omnitrans Update: • Discussion on cuts to be made and the way the agency will adjust to its budgetary issues based on the plummeting ridership in the face of the pandemic. Congratulated those who came out to protest, doing so peacefully and exercised their right to free speech. G. PUBLIC HEARINGS - NONE H. UNFINISHED BUSINESS - NONE C.3 Packet Pg. 20 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 5 I. NEW BUSINESS 9. Consideration of Third Amendment to the City Manager Employment Agreement Extending Term to June 30, 2025, and Making Certain Clarifications to the Agreement with No Increases to Salary or Benefits Adrian Guerra, City Attorney gave the PowerPoint presentation for this item. Council Member Sylvia Robles agrees with all of the contract except the term. She is very pleased with Mr. Duffey’s performance however suggested that the contract extension be revised to reflect a two year term versus a five year term. CONSIDER AND, IF ACCEPTABLE TO THE CITY COUNCIL, APPROVE PROPOSED THIRD AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT RESULT: APPROVED [4 TO 1] MOVER: Doug Wilson, Mayor Pro Tem SECONDER: Jeff Allen, Council Member AYES: Darcy McNaboe, Doug Wilson, Bill Hussey, Jeff Allen NAYS: Sylvia Robles 10. Update on COVID-19 and the Implementation of Curfew from 7:00 P.M. on June 2 through 5:00 A.M. on June 4, 2020 G. Harold Duffey, City Manager gave the PowerPoint presentation for this item. RECEIVE AND FILE INFORMATION. RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Sylvia Robles, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 11. Resolutions Calling & Giving Notice of a General Municipal Election on November 3, 2020, and Requesting Consolidation of the Municipal Election with the State-Wide General Election on November 3, 2020; and Establishing Candidate Statement Regulations Debra Thomas, City Clerk gave the PowerPoint presentation for this item. 1. APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 3, 2020, FOR THE ELECTION OF CERTAIN OFFICERS AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO ELECTIONS CODE SECTION 10403 RELATING TO GENERAL LAW CITIES C.3 Packet Pg. 21 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 6 2. APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2020 RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 12. Resolution Authorizing the City Manager to Submit a Local Early Action Planning Grant Application in the Amount of $65,000 and Execute an Agreement with the California Department of Housing and Community Development Steve Weiss, Planning & Development Services Director gave the PowerPoint presentation for this item. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE AUTHORIZING APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS FROM THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT RESULT: APPROVED [UNANIMOUS] MOVER: Doug Wilson, Mayor Pro Tem SECONDER: Jeff Allen, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen 13. Project Delivery Agreement Between the City of Grand Terrace and State of California, Department of Transportation Alan French, Senior Civil Engineer gave the PowerPoint presentation for this item. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING A PROJECT DELIVERY AGREEMENT BETWEEN THE CITY OF GRAND TERRACE AND STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT RESULT: APPROVED [UNANIMOUS] MOVER: Doug Wilson, Mayor Pro Tem SECONDER: Bill Hussey, Council Member AYES: McNaboe, Wilson, Robles, Hussey, Allen C.3 Packet Pg. 22 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 7 14. Continue Deliberations of the Budget for Fiscal Year 2020-21 Cynthia Fortune, Assistant City Manager gave the PowerPoint presentation for this item. Council Member Robles amended staff recommendation as follows: 1. CONTINUE DELIBERATIONS ON THE CITY OF GRAND TERRACE ANNUAL BUDGET FOR FISCAL YEAR 2020-21; 2. DIRECT STAFF TO PREPARE THE FY2020-21 BUDGET IN ACCORDANCE WITH THE APPROVED ITEMS ABOVE AND RETURN TO CITY COUNCIL FOR ADOPTION ON JUNE 23, 2020; AND 3. STAFF TO RETURN WITH A LETTER DRAFTED TO THE BOARD OF SUPERVISORS ON BEHALF OF CITY COUNCIL: a. ADDRESSING THE BURDEN OF THE SAN BERNARDINO COUNTY SHERIFF’S CONTRACT WITH ITS ESCALATING COSTS AND THE CITY’S DIFFICULTY TO MEET THOSE COSTS; AND b. IF THE BOARD OF SUPERVISORS MOVES FORWARD WITH DISCUSSION ON RESTRUCTURING LAW ENFORCEMENT, THE PUBLIC HEALTH CRISIS, RACE, THE MORBIDITY WITH COVID-19 AND OTHER ISSUES, THE CITY BE PART OF THAT DISCUSSION. RESULT: APPROVED [4 TO 1] MOVER: Sylvia Robles, Council Member SECONDER: Doug Wilson, Mayor Pro Tem AYES: Darcy McNaboe, Doug Wilson, Sylvia Robles, Bill Hussey NAYS: Jeff Allen J. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL 1. Motion: Ballot Measure - Transient Occupancy Tax Requested by: Council Member Jeff Allen RESULT: ADOPTED [4 TO 1] MOVER: Jeff Allen, Council Member SECONDER: Darcy McNaboe, Mayor AYES: Darcy McNaboe, Sylvia Robles, Bill Hussey, Jeff Allen NAYS: Doug Wilson K. CITY MANAGER COMMUNICATIONS None. C.3 Packet Pg. 23 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council June 9, 2020 City of Grand Terrace Page 8 L. ADJOURN Mayor Darcy McNaboe adjourned the Regular Meeting of the City Council at 8:00 p.m. The Next Regular Meeting of the City Council will be held on Tuesday, June 23, 2020 at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra L. Thomas, City Clerk C.3 Packet Pg. 24 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 9 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● JUNE 9, 2020 Council Chamber Special Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO June 9, 2020 City Council Minutes PowerPoint Presentations C.4 Packet Pg. 25 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Third Amendment to City Manager Employment Agreement Adrian R. Guerra, Esq. Aleshire & Wynder, LLP June 9, 2020 Page 2 G. Harold Duffey was hired as the City’s City Manager effective June 1, 2015 The original term of the Agreement was for three years, lasting until May 31, 2018. The City Manager’s initial salary was $180,000. C.4 Packet Pg. 26 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) June 9, 2020 Page 3 Two Existing Amendments to Agreement: 1. On August 23, 2016, the City Council approved the First Amendment, which adjusted his base salary to $206,400. 2. On June 27, 2017, the City Council approved the Second Amendment which: i) adjusted his base salary to $215,000 commencing July 1, 2017; ii) amended certain benefits provisions of the Agreement; and iii) extended the term of the Agreement until June 30, 2020. June 9, 2020 Page 4 The City Manager has requested a five (5) year extension to his current Agreement, which is currently set to expire on June 30, 2020. The City Manager did not request any increase or change to his salary or benefits. C.4 Packet Pg. 27 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) June 9, 2020 Page 5 Before the City Council this evening is a proposed Third Amendment to the City Manager Employment Agreement for the City Council’s consideration. The Third Amendment would extend the term of the Agreement for five (5) years until June 30, 2025. The City Manager’s salary would not be increased by the Third Amendment, nor would the City Manager’s benefits increase. June 9, 2020 Page 6 Section 2. Adds a New Provision Relating to Performance Evaluation: •The City Council shall conduct three (3) regularly scheduled performanceevaluations each calendar year in August, January and April. •The August and January performance evaluations shall be for the purpose ofevaluating his performance with respect to meeting and/or advancing the CityCouncil’s goals and objectives. •The April performance evaluation shall be a comprehensive performance evaluation of his performance and shall include a written evaluation. •Without further City Council action, the City Manager is directed to timelyplacethese regularly scheduled August, January and April performance evaluations onthe respective City Council agendas. •Notwithstanding the foregoing, the City Council may always require thescheduling of additional performance evaluations of the Employee at any time. C.4 Packet Pg. 28 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) June 9, 2020 Page 7 •Section 3. Eliminate forfeiture of management leave at the end of the calendar year and add management leave accrual cap of 80 hours. This is a revision to ensure consistency with state law. •Section 4. Revise required employer cost language to reflect correct FICA contributions and CalPERS plan (Tier 2 Classic (2%@ 60) plan, with 7% employee contribution). •Section 5. Correct typographical errors. June 9, 2020 Page 8 •Section 6. Clarify that the provisions of the Agreement pertaining to separation are governed by language in the Agreement rather the Municipal Code. One separation provision of the Municipal Code will continue to apply: “Employee shall not be removed from office, other than for cause, during or within a period of ninety (90) days next succeeding any general municipal election held in the City in which a member of the City Council is elected or when a new City Council member is appointed.” C.4 Packet Pg. 29 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) June 9, 2020 Page 9 •Section 7. Structure payment of severance such that it is contingent upon both of the following: 1) the City Manager not challenging termination and 2) the City Manager’s execution of a release. •Section 8. Clarify that termination of the Agreement prior to the end of term consistent with the procedures described in the Agreement will not be a breach. June 9, 2020 Page 10 •Section 9. Extend the term of Agreement for five years until June 30, 2025. •Section 10. Clarify provisions of the Agreement that survive termination. •Section 11. Correct court venue for dispute resolution from Los Angeles County to San Bernardino County. C.4 Packet Pg. 30 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) June 9, 2020 Page 11 At this time, it is appropriate for the City Council to consider the proposed Third Amendment and, if acceptable to the City Council, approve the proposed Third Amendment. June 9, 2020 Page 12 QUESTIONS C.4 Packet Pg. 31 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) ccpubliccomment@grandterrace‐ca.gov Update 6/09/2020 At the End of My Presentation Will be an Opportunity for Public and Council to ask our First Responders Questions C.4 Packet Pg. 32 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Update to City Council on COVID‐19 Work with Local Experts County Public Health Officer County of San Bernardino California Office of Emergency Services Daily contact with our First Responders – County of San Bernardino Fire Department County of San Bernardino Sheriff’s Department Operational Area Emergency Operations Center Update to City Council on COVID‐19 Allowed City Staff to Post Relevant Information on Social Media to Keep Council and Public Informed C.4 Packet Pg. 33 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Update to City Council on COVID‐19 Scheduling Walk in Testing Clinic At Senior Center for 55 Years or Older. C.4 Packet Pg. 34 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) City’s Operations Community Development Block Funding Received ‐ $104,000 •Homeless Outreach (HOPE)•Food Banks City Hall Re‐opened For Business (6/08/2020) Parks Open for Passive Use County Library Closed (May Open within 2 weeks) ccpubliccomment@grandterrace‐ca.gov C.4 Packet Pg. 35 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 9 C.4 Packet Pg. 36 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) C.4 Packet Pg. 37 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) ccpubliccomment@grandterrace‐ca.gov C.4 Packet Pg. 38 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) tinyurl.com/COVID19‐92313 Questions C.4 Packet Pg. 39 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Resolutions Calling & Giving Notice of a General Municipal Election on November 3, 2020 City of Grand Terrace 2030 VISION STATEMENT • This staff report supports our CoreValues of Open and InclusiveGovernment; and • Goal #5 – Engage in ProactiveCommunication C.4 Packet Pg. 40 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) BACKGROUND • In an effort to conduct municipalelections in an efficient and cost-effective manner, the San BernardinoCounty Registrar of Voters hasconducted the City’s General MunicipalElections since incorporation. • In order to request these services for theupcoming November 3, 2020 GeneralMunicipal Election, the City Council mustadopt resolutions calling and givingnotice requesting County services andsetting regulations for candidatestatements. DISCUSSION • On November 3, 2020, the City of Grand Terracewill hold its General Municipal Election to elect 3Council Members for a full term of 4 years each.The nomination period begins on July 13, 2020and will close on August 7, 2020. • Candidates who wish to pull papers to run foroffice will need to schedule an appointment withthe City Clerk’s office during this time frame andthose who wish to submit a candidate statementwill be required to pay a deposit of $250.00 tocover the cost of printing. C.4 Packet Pg. 41 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) DISCUSSION • As indicated earlier, the City Council isrequired to adopt a resolution requestingthe services of the County Registrar ofVoters for the November 3, 2020Election and a resolution establishingregulations for candidates pertaining tocandidate statements submitted to thevoters. The adopted Resolutions need tobe submitted to the County no later thanAugust 7, 2020. FISCAL IMPACT • The County of San Bernardino Registrar ofVoters has estimated the cost for servicesprovided to the City of Grand Terrace for theNovember 3, 2020 General Municipal Election inthe amount of approximately $10,000. Sufficientfunds have been included in the proposed FY2020-2021 budget. C.4 Packet Pg. 42 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) RECOMMENDATION • Approve a Resolution Calling & GivingNotice of the Holding of a GeneralMunicipal Election on Tuesday,November 3, 2020 and Requesting theBoard of Supervisors of the County ofSan Bernardino Consolidate the GeneralMunicipal Election with the StatewideGeneral Election; and • Approve a Resolution EstablishingRegulations for Candidates for ElectiveOffice Pertaining to CandidatesStatements Submitted to the Voters QUESTIONS C.4 Packet Pg. 43 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Local Early Action Planning Grant Application June 9, 2020 Agenda Item I.12 FUNDING OPPORTUNITY The Department of Housing and Community Development (Department) is authorized to issue a Notice of Funding Availability (NOFA) as part of the Local Government Planning Support Grants Program (hereinafter referred to by the Department as the Local Early Action Planning Grants program or LEAP) The Department has issued a NOFA and Application on January 27, 2020 in the amount of $119,040,000 for assistance to all California Jurisdictions C.4 Packet Pg. 44 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) What Is LEAP? Local Early Action Planning is a noncompetitive Grant Application (LEAP) that provides assistance to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production and facilitates Housing Element compliance and certification by the California Department of Housing and Community Development (HCD). Eligible Activities May Include: Update of the 2021-2029 General Plan Housing Element. Accelerate Housing Production Environmental analyses that may eliminate the need for project-specific review; and Local process improvements that improve and expedite local planning initiatives. C.4 Packet Pg. 45 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) The primary purpose of this report is for the City Council to support the Grant by approving the resolution, which allows the City Manager to submit the Grant Application for 2021-2029 Housing Element preparation. Purpose Staff Recommends the City Council Approve the Resolution Authorizing City Manager to Submit a LEAP Grant Application in the Amount of $65,000. C.4 Packet Pg. 46 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) A Resolution of the City Council of the City of Grand Terrace Authorizing Application For, And Receipt of, Local Government Planning Support Grant Program Funds From the Department Of Housing and Community Development Local Early Action Planning Grant Application Questions? Thank you! C.4 Packet Pg. 47 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Eligible Activities A.Planning for local financial incentives for housing, including, but not limited to, establishing a local housing trust fund; B.Reducing parking requirements for sites that are zoned for residential development; C. Adoption of zoning allowing for use by right for residential and mixed‐use development; D. Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing RHNA for the current Housing Element cycle; Eligible Activities E. Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Section 65852.2, as determined by the Department; F. Process improvements that reduce permit processing time; G. Creating of objective development standards; H. Studies and implementing actions that reduce development impact fees; and I. Establishing a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.” C.4 Packet Pg. 48 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Ineligible Activities Activities unrelated to preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the RHNA; 2. Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly impact supply, cost, approval certainty and timing, planned development, or other similarly constraining processes; and 3. Project specific planning documents that do not have a significant impact on accelerating housing production or significant community level or re- occurring benefit beyond the project. Ineligible Activities The Department may consider proposals that are combined with larger proposals that have a positive housing component and the net effect on accelerating housing production is significant. For example, an applicant may propose combining an open-space designation, downzoning, or anti- displacement measures with by-right upzoning that has a significant net gain in housing capacity. C.4 Packet Pg. 49 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Eligible Uses 1. Grant funds may cover the costs of temporary staffing or consultant needs associated with eligible activities; 2. Grant funds shall be used for the costs of preparing and adopting the proposed activity; 3. A jurisdiction that receives funds under this Program may use a subcontractor. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the jurisdiction of its responsibilities under the Program; 4. Eligible expenditures may be incurred and expended for the project(s) subject to the terms and conditions of the Standard Agreement; and 5. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed during the grant term, will be reimbursable. Ineligible Uses 1. Program grant funds may not be used for administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed activity; 2. No more than 5 percent of the grant amount may be used for administrative costs for any proposed use, to be approved by the Department upon disbursement; and 3. Approved and eligible costs incurred prior to the NOFA date are ineligible. C.4 Packet Pg. 50 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) The Council may want to consider “Prohousing” policies that facilitate the planning, approval, or construction of housing. C.4 Packet Pg. 51 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) C.4 Packet Pg. 52 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) The Project will Remove the Existing Bridge. Qualifies for Federal Highway Bridge Program Funding 88% of Costs ($3.1M) Various Agreements Executed in 1999, 2010, 2012 and 2017 Background C.4 Packet Pg. 53 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Discussion Bridge is on City Limit line with Colton Remaining 12% ($408,000) of Costs are Shared Equally with Colton Program was Amended in October 2019 to Require Execution of the Delivery Agreement Staff Recommends Approval of the Agreement and to Appropriate the Funds for the Project Conclusion Questions? C.4 Packet Pg. 54 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) C.4 Packet Pg. 55 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 2 C.4 Packet Pg. 56 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 3 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Property Tax $4,064,640 $3,955,275 $4,084,098 $1,938,516 $2,321,272 Residual Receipts - RPTTF $1,090,000 $1,441,813 $1,442,400 $1,443,006 $1,668,400 Proceeds from Sale of Prop. $80,000 $0 $0 $3,720 $0 Franchise Fees $524,300 $520,774 $534,790 $437,529 $445,000 Licenses, Fees & Permits $617,836 $1,007,893 $620,160 $694,368 $495,090 Sales Tax $963,000 $1,048,452 $978,400 $862,143 $925,000 Intergov’t Revenue/Grants $695,570 $471,993 $648,086 $468,379 $653,594 Charges for Services $140,100 $144,624 $207,900 $83,717 $103,300 Fines & Forfeitures $69,000 $79,051 $79,000 $55,213 $39,350 Miscellaneous $209,254 $223,731 $115,388 $76,706 $55,240 Use of Money & Property $441,050 $1,271,709 $75,050 $194,937 $83,550 Waste Water Receipts $300,000 $318,349 $318,349 $318,349 $318,349 Transfers In $3,102,243 $2,480,832 $2,825,450 $311,174 $450,238 Residual Receipts - Sr Ctr $60,000 $0 $0 $0 $0 Gas Tax $519,800 $491,925 $519,800 $495,100 $560,000 Total Revenues $12,876,793 $13,456,421 $12,448,871 $7,382,855 $8,118,383 C.4 Packet Pg. 57 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Salaries $1,479,910 $1,464,582 $1,615,711 $1,489,223 $1,310,628 Benefits $813,476 $789,551 $974,800 $915,633 $1,177,917 Materials & Supplies $212,852 $212,646 $235,917 $253,365 $195,957 Professional/Cont. Services $8,224,855 $5,973,077 $7,314,755 $4,984,357 $4,385,786 Equipment $60,100 $55,075 $145,000 $132,980 $5,001 Lease of Facility/Equipment $8,549 $8,549 $8,000 $19,324 $19,324 Utilities $208,821 $210,555 $226,350 $247,939 $224,668 Overhead Cost Allocation $0 ($5,500)$0 ($2,548)$0 Capital Projects $893,478 $177,076 $860,188 $45,964 $40,000 Debt Service $239,600 $242,404 $239,600 $0 $233,438 Transfers Out $3,101,837 $3,371,483 $2,825,450 $20,961,369 $450,238 Total Expenditures $15,243,478 $12,499,498 $14,445,771 $29,047,606 $8,042,957 6 C.4 Packet Pg. 58 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Property Tax $1,980,000 $1,881,364 $1,971,250 $1,891,261 $1,971,250 Residual Receipts - RPTTF $1,090,000 $1,441,813 $1,442,400 $1,443,006 $1,668,400 Proceeds from Sale of Property $80,000 $0 $0 $3,720 $0 Franchise Fees $524,300 $520,774 $534,790 $437,529 $445,000 Licenses, Fees & Permits $434,186 $422,427 $456,510 $329,086 $329,090 Sales Tax $770,000 $831,321 $785,400 $675,034 $725,000 Intergov’t Revenue/Grants $26,500 $46,209 $26,500 $63,708 $160,000 Charges for Services $140,100 $141,143 $207,900 $80,299 $100,300 Fines & Forfeitures $62,500 $71,593 $72,500 $52,087 $35,100 Miscellaneous $114,714 $78,919 $15,148 $506 $0 Use of Money & Property $27,000 $93,771 $62,000 $63,016 $67,500 Wastewater Receipts $300,000 $318,349 $318,349 $318,349 $318,349 Transfers In $2,352 $2,379 $84,450 $84,450 $0 Residual Receipts - Sr Ctr $60,000 $0 $0 $0 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Property Tax , $1,971,250, 33.9% Residual Receipts- RPTTF , $1,668,400, 28.7% Sales Tax , $725,000, 12.5% Franchise Fees , $445,000, 7.6% Licenses, Fees & Permits , $329,090, 5.7% Waste Water Receipts , $318,349, 5.5% Intergovt Revenue/Grants , $160,000, 2.7% Charges for Services , $100,300, 1.7% Use of Money & Property , $67,500, 1.2%Fines & Forfeitures , $35,100, 0.6% City of Grand Terrace 2020-21 General Fund Proposed Revenues C.4 Packet Pg. 59 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Salaries $1,221,447 $1,210,981 $1,246,881 $1,220,510 $1,083,626 Benefits $769,091 $739,524 $842,690 $809,209 $1,066,206 Materials & Supplies $208,645 $208,439 $225,917 $242,958 $190,957 Professional/Cont. Services $3,354,687 $3,316,160 $3,471,796 $3,322,888 $3,352,541 Equipment $0 $0 $0 ($0)$1 Lease of Facility/Equipment $8,549 $8,549 $8,000 $19,324 $19,324 Utilities $137,957 $141,041 $145,000 $143,858 $143,858 Overhead Cost Allocation ($87,450) ($87,450) ($84,950) ($84,950)($81,950) Capital Projects $0 $0 $0 $0 $0 Debt Service $0 $0 $0 $0 $0 Transfers Out $126,326 $155,346 $125,800 $125,800 $135,800 Total Expenditures $5,739,252 $5,692,590 $5,981,134 $5,799,596 $5,910,363 $1,083,626 $1,066,206 $190,957 $3,352,541 $19,324 $143,858 ($81,950) $135,800 Salaries Benefits Materials & Supplies Prof/Cont Services Lease of Equip Utilities Overhead Cost Alloc Transfers Out ($500,000) $500,000 $1,500,000 $2,500,000 $3,500,000 City of Grand Terrace 2020-21 General Fund Proposed Expenditures C.4 Packet Pg. 60 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) $1,083,626 $1,066,206 $190,957 $3,352,541 $19,324 $143,858 ($81,950) $135,800 Salaries Benefits Materials & Supplies Prof/Cont Services Lease of Equip Utilities Overhead Cost Alloc Transfers Out ($500,000) $500,000 $1,500,000 $2,500,000 $3,500,000 City of Grand Terrace 2020-21 General Fund Proposed Expenditures Professional Services 1 Law Enforcement $2,160,000 2 Legal Counsel $209,000 3 Computer Software Licensing $100,000 4 Street Rpr.& Mtce (MoE) $200,000 5 Insurance $123,000 6 Information Technology $100,000 7 Park Maintenance $33,500 8 Audit Services $33,000 9 Bank Service Charges $28,000 10 Plan Check Services $25,000 11 HVAC Maintenance Svcs $25,000 12 Animal Sheltering Svcs $20,000 $3,056,500 12 C.4 Packet Pg. 61 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 13 1. GENERAL FUND (use of $90, 374): as a result of COVID-19, the City’s general fund revenues have seen a significant reduction in the last few months; staff is recommending the use of fund balance to augment the City’s General Fund revenues for FY2020-21. 14 2018-19 2018-19 2019-20 2019-20 2020-21 Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 10 Revenue $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 10 Expense $5,739,252 $5,698,090 $5,981,134 $5,799,596 $5,910,363 ($127,600)$151,972 ($3,937)($357,544)($90,374) C.4 Packet Pg. 62 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) 15 Class Title 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Adjustments 2020-21 1Assistant City Manager - - 1.0 1.0 1.0 1.0 - 1.0 2Assistant Planner - - 1.0 1.0 1.0 1.0 - 1.0 3Assistant to the City Manager ------ -- 4Budget Officer - - 1.0 1.0 1.0 1.0 - 1.0 5Building Official (P/T)- - 0.5 0.5 0.5 0.5 (0.5) - 6Building Permit Technician 1.0 1.0 1.0 1.0 1.0 1.0 - 1.0 7Bus Driver 0.5 0.5 0.5 0.5 1.0 - 1.0 8City Clerk 1.0 1.0 1.0 1.0 1.0 1.0 - 1.0 9City Manager 1.0 1.0 1.0 1.0 1.0 1.0 - 1.0 10Code Enf. - Animal Ctrl Offr ----1.0 1.0 -1.0 11Code Enf. - Animal Ctrl Sp ----1.0 1.0 (0.5)0.5 12Code Enforcement Specialist 0.5 0.5 0.5 - -- - 13Comm. Development Director 1.0 ----- -- 14Department Secretary 1.0 1.0 1.0 1.0 1.0 1.0 (1.0) - 15Executive Assistant 1.0 1.0 1.0 1.0 1.0 1.0 (1.0) - 16Finance Director ------ -- 17Financial Analyst - - 1.0 - -- - C.4 Packet Pg. 63 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) Class Title 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21Adjustments 2020-21 18Human Resources Tech (P/T)0.5 0.5 0.5 - - -- - 19Intern-1 (P/T)0.5 0.5 0.5 - - -- - 20Intern-2 (P/T)0.5 0.5 0.5 - - -- - 21Maintenance Crew Lead 1.0 1.0 1.0 1.0 1.0 1.0 - 1.0 22Maintenance Crew Leader (PT) -0.5 ---- -- 23Maintenance Worker I - 1.0 1.0 1.0 - -- - 24Maintenance Worker II 1.0 1.0 2.0 2.0 3.0 3.0 (2.0) 1.0 25Management Analyst 1.0 1.0 1.0 2.0 2.0 2.0 (1.0) 1.0 26Office Specialist - 0.5 1.5 2.0 2.0 2.0 (1.0) 1.0 27Plng & Development Svcs Dir 1.0 1.0 1.0 1.0 1.0 - 1.0 28Planning Technician 0.5 0.5 ---- -- 29Principal Accountant - - 0.5 0.5 - -- - 30PW Director/City Engineer - 1.0 1.0 1.0 1.0 1.0 - 1.0 31Senior Finance Technician 1.0 1.0 ---- -- 32Sr. Code Enforcement Officer 1.0 1.0 1.0 1.0 ---- TOTAL 13.0 17.0 21.0 22.0 21.0 21.5 (7.0)14.5 18 Direct staff to prepare the FY2020-21 Budget in accordance with City Council approval and return to City Council for adoption on June 23, 2020. C.4 Packet Pg. 64 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) C.4 Packet Pg. 65 Co m m u n i c a t i o n : A t t a c h m e n t t o M i n u t e s - 0 6 / 0 9 / 2 0 2 0 ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Approval of the September-2019 Check Register in the Amount of $208,279.16 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Approve Check Register No. 09302019 in the amount of $208,279.16 as submitted, for the period ending September 30, 2019. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: Grand Terrace Fiscal Policy 2.01 (Accounts Payable), Section III.A - City Council Approval, states that “A check register will be prepared by the Finance Department and submitted to the City Council for review and approval on a monthly basis during a regularly scheduled City Council meeting. In addition, during the adoption of the City’s annual budget, the adoption resolution also states that “the City Council authorizes payment of expenses incurred by means of a check register prepared by the Finance Department and approved at regular meetings of City Council.” It is the Finance’s Department’s responsibility to ensure that all monthly check registers are submitted to City Council for their review and approval; a review of all submitted registers to City Council towards the end of the fiscal year determined that the monthly register for the period ending September 30, 2019, was inadvertently omitted. Therefore, in order to comply with Grand Terrace Fiscal Policy 2.01.III.A, and the City’s annual budget adoption resolution, the check register for the month of September-2019 has been prepared in accordance with Government Code §37202 and is hereby submitted for City Council’s approval. The check registers list all vendor payments for the respective month, along with a brief description of the type of goods or services purchased and the account code(s) associated with each payment. The check registers list all payments made to vendors and employee reimbursements during the month of September-2019. C.5 Packet Pg. 66 The attached index to the Check Register is a guideline account list only and is not intended to replace the comprehensive chart of accounts used by the City and Grand Terrace Successor Agency. Expenditure account number formats are XX-XXX-XXX [Fund-Department-Account]. Expenditures may be made from trust/agency accounts (Fund 23-XXX-) or temporary clearing accounts which do not have a budgetary impact. DISCUSSION: A total of $208,279.16 in accounts payable checks and/or wires were issued during the period for services, reimbursements, supplies and contracts and are detailed in the individual monthly registers. Below is a table that lists payments larger than $10,000 for the attached check register: Payments larger than $10,000: Check No. Payee Description Amount SEPTEMBER-2019 76669 BOYS GIRLS CLUB 2019 SUMER SWIM PROGRAM $13,415.00 76678 RIVERSIDE HIGHLAND WATER CO JUN-JUL 2019 WATER USAGE $10,916.76 76690 ARROWHEAD CREDIT UNION AUG-2019 VISA CHARGES $10,113.06 76707 ALESHIRE & WYNDER AUG-2019 LEGAL SERVICES $38,058.04 15773949 CALPERS RETIREMENT SEP-2019 HEALTH PREMIUMS $18,782.08 SEP-2020 Payments larger than $10,000 $91,284.94 Payroll costs for the month of September-2019 Pay Period Period Start Period End Pay Date Amount SEPTEMBER-2019 6 From 8/24/2019 to 9/6/2019 9/12/2019 $58,600.73 7 From 9/7/2019 to 9/20/2019 9/26/2019 $58,071.39 TOTAL $116,672.12 FISCAL IMPACT: All disbursements (including payroll) were made in accordance with the Approved Budget for Fiscal Year 2019-20 in the amount of: Description Amount SEPTEMBER-2019 Check Register $208,279.16 Payroll $116,672.12 C.5 Packet Pg. 67 TOTAL $324,951.28 . ATTACHMENTS: • Check Register Account Index (PDF) • Sept-2019 Check Register Report (PDF) APPROVALS: Cynthia A. Fortune Completed 06/13/2020 3:18 PM Finance Completed 06/13/2020 3:19 PM City Attorney Completed 06/16/2020 2:34 PM City Manager Completed 06/18/2020 3:21 PM City Council Pending 06/23/2020 6:00 PM C.5 Packet Pg. 68 Fund No.Fund Name Dept No.Department Cost Center Acct No.General Account Numbers 09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES 10 GENERAL FUND 120 CITY MANAGER 115 OVERTIME 11 STREET FUND 125 CITY CLERK 120 COUNCIL STIPENDS 12 STORM DRAIN FUND 140 FINANCE 138 MEDICARE / SUI 13 PARK FUND 160 CITY ATTORNEY 139 EMPLOYEES' BENEFIT PLAN 14 AB 3229 COPS FUND 172 BUILDING & SAFETY 140 RETIREMENT 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 142 HEALTH/LIFE INSURANCE 16 GAS TAX FUND 180 COMMUNITY EVENTS 143 WORKERS' COMPENSATION 17 TRAFFIC SAFETY FUND 185 RENTAL INSPECTION PROGRAM 210 OFFICE EXPENSE 18 TRANS. DEV. ACT (T D A FUND)187 ENFORCEMENT PROGRAM 211 POSTAGE & MAILING 19 FACILITIES DEVELOPMENT FUND 190 NON-DEPARTMENTAL 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 195 FACILITIES MAINTENANCE 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 370 PLANNING & DEVELOPMENT SVCS 235 COMMUNICATIONS 22 COMMUNITY DEV. BLOCK GRANT 380 MGT INFORMATION SYSTEMS 238 UTILITIES 25 SPRING MOUNTAIN RANCH FUND 410 LAW ENFORCEMENT 240 RENTS & LEASES 26 LSCPG/ LGHTG ASSESSMENT DIST.411 ASSET FORFEITURES 244 CUSTODIAL SERVICES 32 S/A CAPITAL PROJECTS FUND 430 RECREATION SERVICES 245 MAINT BLDG GRNDS EQUIPMNT 36 S/A 2011 TABS BOND PROCEEDS 441 CHILD CARE - NUTRITION GRANT 246 MAINT/OPER OF EQUIPMNT 45 CIP - COMMERCE WAY 445 CHILD CARE - TINY TOTS 250 PROFESSIONAL SERVICES 46 CIP - STREET IMPROVEMENTS 446 CHILD CARE - AFTER SCHOOL 251 BANKING SERVICE CHARGES 47 CIP - BARTON RD. BRIDGE PROJECT 447 CHILD CARE - PRE-SCHOOL 252 ROAD MAINTENANCE 48 CIP - CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 254 STREET SWEEPING 49 CIP - PARKS 461 COMMUNITY GRANTS 255 CONTRACTUAL SERVICES 50 CAPITAL PROJECT BOND PROCEEDS 500 AIR QUALITY PROGRAMS 256 ANIMAL SHELTERING SVCS 52 HOUSING AUTHORITY 510 STREET & SIGNAL LIGHTING 260 INSURANCE & SURETY BONDS 61 COMMUNITY BENEFITS FUND 573 LINE MAINTENANCE 265 MEMBERSHIPS & DUES 62 LIGHT UP GRAND TERRACE FUND 600 ZONE 1 13364 CANAL -TERR PINES 268 TRAINING 63 ILLEGAL FIREWORKS FUND 601 ZONE 3 TRACT 14471 PICO & ORIOLE 270 TRAVEL/CONFERENCES/MTGS 64 PUBLIC SAFETY FUND 602 ZONE 2 14264 FORREST CITY PHASE II 271 MILEAGE 65 SENIOR BUS PROGRAM FUND 603 ZONE 4 TRACT 17766 GREENBRIAR 625 NPDES 66 CAL RECYCLE GRANT 604 ZONE 5 TRACT 18793 PALOMINO 631 STORM DRAIN MAINTENANCE 67 PUBLIC EDUC & GOVT ACCESS (PEG)605 ZONE 6 TRACT 18071 JADEN 801 PLANNING COMMISSION 68 40TH YR CELEBRATION FUND 606 ZONE 7 TRACT 18604 TESORO/VAN BUREN 804 HISTORICAL & CULTURAL COMM. 69 COMMUNITY DAY FUND 625 NPDES 311 FACILITY IMPROVEMENTS 70 FIXED ASSED/EQUIP REPL FUND 631 STORM DRAIN MAINTENANCE 570 WASTEWATER TREATMENT 73 ACTIVE TRANS PRGM (ATP) GRANT 700 CAPITAL OUTLAY 400 OTHER COMMUNITY GRANTS 74 HIGHWAY SFTY IMPV PRGM (HSIP)705 EVERY 15 MINUTES 601 ELECTRICAL VEHICLE STATIONS 75 EMER MGMT PREP GRANT (EMPG)801 PLANNING COMMISSION 700 COMPUTER EQUIPMENT 76 ENHANCED INFRA FIN DIST (EIFD)804 HISTORICAL & CULTURAL COMMITTEE 701 CAPITAL IMPROVEMENT OTHER 77 SO CAL INCENTIVE PROJECT (SCIP)805 SENIOR CITIZENS PROGRAM 705 VEHICLES 90 COVID-19 EMERGENCY FUND 808 EMERGENCY OPERATIONS PROG.998 OVERHEAD COST ALLOCATION 95 DOG PARK ENDOWMENT FUND 999 TRANSFERS 999 TRANSFERS OUT City of Grand Terrace Check Register Index C.5.a Packet Pg. 69 At t a c h m e n t : C h e c k R e g i s t e r A c c o u n t I n d e x ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) This page left intentionally blank. C.5.a Packet Pg. 70 At t a c h m e n t : C h e c k R e g i s t e r A c c o u n t I n d e x ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) CITY OF GRAND TERRACE FY2019-20 GRAND TERRACE CIVIC CENTER 22795 BARTON ROAD GRAND TERRACE, CA 92313 MONTHLY CHECK REGISTER For the Period Ending September 30, 2019 Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 pm. C.5.b Packet Pg. 71 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) This page left intentionally blank. C.5.b Packet Pg. 72 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice # E 10-804-220-000-000 500.00 500.00 500.00 E 10-450-245-000-000 88.50 88.50 488.50 76656 09/03/2019 SHIRLEY HOGUE 09032019 SH HIST & CULT COMM - 38TH COUNTRY FAIR - CASH 08/05/2019 E 10-450-245-000-000 400.00 400.00 367096 AUG19 MONTHLY GOPHER CONTROL ROLLINS PA 08/12/2019 E 10-450-245-000-000 9.24 9.24 9.24 76655 09/03/2019 GOPHER PATROL 367094 AUG19 MONTHLY GOPHER CONTROL PICO PARK 08/12/2019 B 95-309-10-00 70.20 70.20 70.20 76654 09/03/2019 FRUIT GROWERS SUPPLY 92080598 PARK MAINTENANCE SUPPLIES 08/20/2019 E 10-450-255-000-000 4,395.00 4,395.00 4,395.00 76653 09/03/2019 FASTSIGNS SAN BERNARDINO INV-17309 NO DIGGING SIGNS 07/08/2019 B 10-022-71-00 105.87 105.87 105.87 76652 09/03/2019 EZ SUNNYDAY LANDSCAPE 18302 AUG19 MONTHLY MAINTENANCE PARKS AND PAR 08/16/2019 E 20-100-245-000-000 394.00 394.00 394.00 76651 09/03/2019 EYEMED FIDELITY SECURITY LIFE 164013497 SEP 2019 EMPLOYEE PAID VISION INSURANCE 08/21/2019 Inv. Date Amount Paid Check Total 76650 09/03/2019 WEST COAST ARBORISTS INC 149603 JUN19 CITYWIDE TREE MAINTENANCE 06/30/2019 Check #Date Vendor Invoice Description Check Register C.5.b Packet Pg. 73 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register 93858192-001 93.63 629.33 E 10-450-245-000-000 101.54 101.54 PARK MAINT SUPPLIES 08/16/2019 E 10-450-245-000-000 93.63 E 10-450-245-000-000 434.16 434.16 94119028-001 PARK MAINTENANCE SUPPLIES 08/28/2019 E 10-370-210-000-000 2.00 2.00 2.00 76662 09/03/2019 SITEONE LANDSCAPE SUPPLY 94002377-001 SPRINKLERS FOR ROLLINS PARK 08/22/2019 R 10-700-01 115.00 115.00 115.00 76661 09/03/2019 SB COUNTY ASSESSOR 108517 AUG19 PARCEL MAP REVISIONS 08/07/2019 E 10-120-210-000-000 787.50 787.50 4,406.98 76660 09/03/2019 DIANA OUHAN Permit 17 and 18 DE BERRY ST PARKING PERMIT REFUND 08/23/2019 B 10-017-00-00 904.87 E 10-120-210-000-000 2,714.61 3,619.48 INV-10807 GOVERNMENTJOBS.COM SUBSCRIPTION 9/18/19-08/18/2019 76659 09/03/2019 GOVERNMENTJOBS COM INC NEO INV-10808 PERFORMANCE EVALUATION SOFTWARE LICENS 08/29/2019 E 10-140-250-000-000 5,580.50 E 32-200-250-000-000 1,919.50 7,500.00 7,500.00 E 10-631-255-000-000 2,946.25 2,946.25 2,946.25 76658 09/03/2019 LANCE SOLL AND LUNGHARD LLP 33759 2019 GOVT AUDIT- INTERIM FIELDWORK 08/31/2019 76657 09/03/2019 HOUSTON AND HARRIS PCS INC 19-22092 STORM DRAIN CLEANING & VIDEO MT VERNON 07/31/2019 C.5.b Packet Pg. 74 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register 097702351 322.19 1,143.15 E 10-190-212-000-000 820.96 820.96 COPIER LEASE & RENTAL WRK CNTR 5955 08/01/2019 E 10-190-212-000-000 322.19 E 10-185-250-000-000 6,597.50 6,597.50 6,597.50 76668 09/03/2019 XEROX CORPORATION 097702352 JULY COPIER LEASE RENTAL & IMPRINTS 08/01/2019 E 10-175-245-000-000 720.00 720.00 720.00 76667 09/03/2019 WILLDAN 00221293 JUL19 CODE ENFORCEMENT OFFICER FY 2019-20 08/02/2019 E 10-190-235-000-000 190.05 190.05 190.05 76666 09/03/2019 WEST COAST ARBORISTS INC 151119 EMERGENCY CALL OUT PICO ST HAZ LIMB REMO 07/31/2019 E 10-805-238-000-000 19.11 19.11 203.00 76665 09/03/2019 VERIZON WIRELESS 9836769103 ALPR CARD LINE CHARGES 7/24-8/23 08/23/2019 E 10-805-238-000-000 73.91 73.91 0156711082519 SR CENTER TV - CLUB HOUSE - 8/25-9/24 08/25/2019 E 10-190-238-000-000 109.98 109.98 0153825082319 SR CENTER INTERNET - HSD3 - 8/23-9/22 08/23/2019 E 68-120-220-000-000 17.75 17.75 17.75 76664 09/03/2019 TIME WARNER CABLE 0228510082519 CITY HALL INTERNET - TWC BC - 8/25-9/24 08/25/2019 76663 09/03/2019 STREET DECOR INC 29004 VETERANS FREEDOM PARK BANNER 08/01/2019 C.5.b Packet Pg. 75 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register E 10-185-255-000-000 1,630.74 1,630.74 1,630.74 E 10-370-230-000-000 145.04 145.04 293.11 76674 09/11/2019 COUNTY OF RIVERSIDE AN0000001780 AUG 19 ANIMAL SHELTERING SERVICES 09/09/2019 E 10-370-230-000-000 148.07 148.07 30986 PUBLIC HEARING 9/19/19 08/30/2019 E 10-175-268-000-000 100.00 100.00 100.00 76673 09/11/2019 CITY NEWSPAPER GROUP 30908 PLANNING COMMISSION 9/5/19 08/19/2019 E 10-808-235-000-000 274.42 1,981.20 1,981.20 76672 09/11/2019 BIONATURAL HEALING COLLEGE CE PEST AC 082 AUG19 PESTICIDE SEMINAR - ALEX C.06/12/2019 E 10-190-235-000-000 1,104.12 E 10-450-235-000-000 209.82 E 10-805-235-000-000 392.84 E 10-120-220-000-000 673.92 673.92 673.92 76671 09/11/2019 AT AND T Sep 2019 AT&T AT&T PHONE INTERNET ALARM SVCS 09/01/2019 E 10-120-250-000-000 816.00 816.00 13,415.00 76670 09/11/2019 411 PRINTING INC 164 POSTERS AND BANNERS 07/02/2019 E 10-120-250-000-000 12,599.00 12,599.00 3745 2019 SUMMER SWIM PROGRAM 06/12/2019 76669 09/11/2019 BOYS GIRLS CLUB 3733 2019 SUMMER SWIM PROGRAM 07/12/2019 C.5.b Packet Pg. 76 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register E 10-450-245-000-000 211.37 211.37 211.37 E 10-110-142-000-000 232.77 232.77 232.77 76680 09/11/2019 SITEONE LANDSCAPE SUPPLY 94156240-001 HUNTER I-20 ADJ ROTOR 12IN. RISER W/CHECK V 08/29/2019 E 52-700-238-002-000 13.18 10,916.76 10,916.76 76679 09/11/2019 SYLVIA ROBLES SEP-2019-SR-1 SEP MEDICAL HEALTH REIMBURSEMENT -SR 08/30/2019 E 32-600-307-000-000 367.97 E 32-600-326-000-000 26.36 E 48-600-330-010-000 335.86 E 32-600-214-000-000 13.18 E 32-600-216-000-000 13.18 E 32-600-301-000-000 13.18 E 10-805-238-000-000 2,402.02 E 26-600-239-000-000 416.38 E 26-601-239-000-000 105.14 E 10-175-238-000-000 59.31 E 10-190-238-000-000 740.93 E 10-450-238-000-000 6,410.07 E 10-110-142-000-000 249.23 249.23 249.23 76678 09/11/2019 RIVERSIDE HIGHLAND WATER CO JUN-JUL 2019 RH JUN-JUL 2019 WATER USE 08/15/2019 B 95-309-30-00 225.00 225.00 225.00 76677 09/11/2019 WILLIAM HUSSEY SEP-2019-BH SEPT MEDICAL HEALTH REIMBURSEMENT 09/03/2019 E 77-175-255-000-000 1,030.00 1,030.00 1,030.00 76676 09/11/2019 GOPHER PATROL 367097 AUG19 MONTHLY MAINTENANCE GOPHER CONTR 08/12/2019 76675 09/11/2019 CSG EV LLC 1001 DESIGN & ENGINEERING FOR 2 DC FAST CHARGE 09/09/2019 C.5.b Packet Pg. 77 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register E 10-450-238-000-000 1,220.95 E 16-510-238-000-000 446.72 8,362.58 8,362.58 E 10-172-238-000-000 137.01 E 10-175-238-000-000 137.01 E 10-190-238-000-000 6,420.89 1,097.22 1,097.22 76685 09/12/2019 SO CA EDISON COMPANY AUG19 ENERGY AUGUST 2019 ENERGY USAGE 08/28/2019 E 10-175-240-000-000 470.34 E 10-185-235-000-000 247.74 E 16-510-236-000-000 379.14 2,946.00 2,946.00 76684 09/11/2019 VERIZON WIRELESS 9837106637 AUG1-SEP1 2019 VZW USAGE 09/01/2019 R 10-420-14 233.00 B 23-505-94-00 2,050.50 B 23-505-95-00 662.50 E 10-190-238-000-000 88.00 88.00 584.89 76683 09/11/2019 THE REC CENTER CUP 19-03 REFU REFUND CUP 19-03 & ENV 19-04 09/11/2019 E 10-190-238-000-000 239.80 E 10-805-238-000-000 257.09 496.89 16179154 083119 AUG 19 WATER FILTRATION SYS RENTAL - CITY H 08/31/2019 E 10-805-238-000-000 65.50 179.75 179.75 76682 09/11/2019 SPARKLETTS 9637116 090119 AUGUST 2019 BOTTLED WATER 09/01/2019 E 10-175-272-000-000 7.80 E 10-185-272-000-000 5.20 E 10-190-238-000-000 101.25 76681 09/11/2019 SO CA GAS COMPANY AUG 19-SEPT 19 AUG19-SEP19 GAS USAGE 09/06/2019 C.5.b Packet Pg. 78 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register E 10-172-210-000-000 50.00 E 10-185-210-000-000 50.00 100.00 100.00 E 10-450-245-000-000 431.00 431.00 431.00 76689 09/19/2019 ACCENT GRAPHICS AND DESIGN 19-1301 BUSINESS CARDS - LEILA HOLTZEN & LUIS GARD 08/13/2019 B 23-200-86-00 42.00 42.00 248.00 76688 09/19/2019 GOPHER PATROL 354182 JUN19 GOPHER CONTROL AT PICO PARK 06/11/2019 B 23-200-86-00 206.00 206.00 2019 2ND QTR S SB 1186 2ND QTR 2019 COLLECTIONS 09/18/2019 B 23-302-90-00 34.03 34.03 2,452.38 76687 09/19/2019 DIVISION OFTHE STATE ARCHITEC 2019 1ST QTR S SB 1186 1ST QTR 2019 COLLECTIONS 09/18/2019 B 23-302-90-00 432.40 432.40 02012019 TRASH DELINQUENT TRASH COLLECTIONS 02/01/2019 B 23-302-90-00 559.31 559.31 03222019 TRASH DELINQUENT TRASH COLLECTIONS 03/22/2019 B 23-302-90-00 1,426.64 1,426.64 02222019 TRASH DELINQUENT TRASH COLLECTIONS 02/22/2019 76686 09/19/2019 BURRTEC WASTE INDUSTRIES INC 01042019 TRASH DELINQUENT TRASH COLLECTIONS 01/04/2019 C.5.b Packet Pg. 79 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register INV06-006878 E 10-120-250-000-000 464.96 464.96 464.96 431.98 1,207.53 76692 09/19/2019 MARIO R BEAS MBCS091119 SEP 10 2019 GT STAY INTERVIEW REPORT 09/11/2019 E 10-140-250-000-000 775.55 775.55 AUG 2019 BUSINESS LICENSE SVCS 08/31/2019 E 10-140-250-000-000 431.98 10,113.06 10,113.06 76691 09/19/2019 AVENU MUNISERVICES INV06-006647 JULY 2019 BUSINESS LICENSE SVCS 07/31/2019 E 10-450-245-000-000 PARK SUPPLIES 911.30 E 17-900-255-000-000 ENCRCHMNT FEE COLTON 116.00 E 65-425-220-000-000 SR CTR VOICEMAIL SVCS 12.99 E 10-185-268-000-000 CODE ENF TRAINING 826.96 E 10-195-245-000-000 FACILITY MTRLS/SUPPL 179.80 E 10-370-210-000-000 NATL NIGHT OUT SUPPL 163.79 E 10-185-210-000-000 SUPPLIES 48.94 E 10-185-218-000-000 CODE ENF MTRLS/SUPPL 951.05 E 10-185-265-000-000 CODE ENF MEMBERSHP 95.00 E 10-175-257-010-000 CITY HALL MTRLS & SUPPL 94.00 E 10-175-268-000-000 PESTICIDES/LNDSC TRNG 320.15 E 10-175-270-000-000 VEHICLE TIRE REPLACEMN 391.38 E 10-172-268-000-000 BLDG OFFC TRAINING 500.00 E 10-175-210-000-000 SUPPLIES 8.59 E 10-175-246-000-000 VEHICLE MAINT & REPAIR 574.32 E 10-125-210-000-000 SUPPLIES 32.50 E 10-140-210-000-000 ANNUAL LICENSE ASCAP 405.77 E 10-172-210-000-000 ADOBE ACROBAT SUBS 16.99 E 10-120-220-000-000 MOVIES IN THE PARK SUP 1,268.48 E 10-120-250-000-000 BANNERS, MOVIES IN THE 224.64 E 10-120-270-000-000 LEAGUE OF CITIES CONF 1,130.46 E 10-110-210-000-000 ADOBE ACROBAT SUBSCR 84.95 E 10-110-270-000-000 LEAGUE OF CITIES CONF 1,745.00 E 10-120-210-000-000 SUPPLIES 10.00 76690 09/19/2019 ARROWHEAD CREDIT UNION AUG 2019 VISA AUG 2019 VISA CHARGES 09/02/2019 C.5.b Packet Pg. 80 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register 562.83 562.83 E 10-370-210-000-000 50.00 R 10-450-01 50.00 R 10-500-09 57.50 E 10-190-226-000-000 50.00 R 10-200-05 90.00 R 10-200-15 198.00 E 10-120-220-000-000 13.33 E 10-140-220-000-000 25.00 E 10-185-272-000-000 29.00 E 10-380-250-000-000 4,984.00 4,984.00 4,984.00 76696 09/19/2019 PETTY CASH PETTY0919 REPLENISH PETTY CASH 09/12/2019 E 74-175-142-000-000 4.45 1,331.66 1,331.66 76695 09/19/2019 ON SITE COMPUTING 53006685 OCT IT SERVICES 09/10/2019 E 52-400-142-000-000 2.10 E 65-425-142-000-000 3.80 E 73-370-142-000-000 1.05 E 10-370-142-000-000 45.19 E 10-450-142-000-000 14.14 E 16-175-142-000-000 32.79 E 10-172-142-000-000 6.32 E 10-175-142-000-000 34.50 E 10-185-142-000-000 21.12 B 10-022-66-00 1,056.95 E 10-120-142-000-000 68.00 E 10-125-142-000-000 41.25 E 10-380-250-000-000 980.00 980.00 980.00 76694 09/19/2019 LINCOLN NATIONAL LIFE INSURAN LCLN OCT 2019 OCT 2019 ADD/LIFE/STD/WI/LTD 09/09/2019 76693 09/19/2019 BENSON PRODUCTIONS 1324 AUG 2019 VIDEOGRAPHY SERVICES 08/07/2019 C.5.b Packet Pg. 81 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register 00415465 E 10-190-212-000-000 539.58 539.58 390.00 6,271.00 76701 09/19/2019 XEROX CORPORATION 098000638 AUG19 W7970 PRINTER USAGE CHARGES 09/01/2019 2,016.00 002-21442 AUG 19 PUBLIC WORKS SVCS 09/04/2019 E 10-172-250-100-000 390.00 E 10-172-250-100-000 3,865.00 3,865.00 JUL 2019 INSPECTION SERVICES 08/09/2019 E 10-172-250-100-000 2,016.00 E 10-120-220-000-000 550.00 550.00 550.00 76700 09/19/2019 WILLDAN 002-21441 AUG 19 PLAN CHECK AND REVIEW SVCS 09/04/2019 5,277.03 5,277.03 76699 09/19/2019 STUDIO 33 STAGE PRODUCTIONS 1312 DJ FOR NATIONAL NIGHT OUT 8-6-19 09/02/2019 E 26-602-238-000-000 58.10 E 26-603-238-000-000 10.00 E 26-604-238-000-000 30.00 E 16-510-238-000-000 5,087.63 E 26-600-238-000-000 49.80 E 26-601-238-000-000 41.50 E 10-450-245-000-000 281.33 281.33 629.89 76698 09/19/2019 SO CA EDISON COMPANY AUG 2019 EDISO AUGUST 2019 ENERGY USAGE 2 09/06/2019 E 10-450-245-000-000 348.56 348.56 93179803-001 IRRIGATION SUPPPLIES FOR TJ AUSTIN PARK 07/22/2019 76697 09/19/2019 SITEONE LANDSCAPE SUPPLY 92734532-001 IRRIGATION SUPPPLIES FOR CANAL AND ROLLIN 07/03/2019 C.5.b Packet Pg. 82 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register 0059079 B 10-015-65-00 21,878.92 21,878.92 E 10-140-250-000-000 562.24 562.24 562.24 76707 09/24/2019 ALESHIRE AND WYNDER LLP 52973 AUG 2019 REIMBURSABLE-MJR TRANS. LGL SVCS 08/27/2019 630.00 5,648.14 76706 09/24/2019 ACCOUNTEMPS 53841652 ACCG SVCS- WEEK ENDED 07/12/2019 07/15/2019 E 10-370-250-000-000 2,100.00 2,100.00 MAY 2019 ON-CALL PLANNER SVCS 06/17/2019 E 10-370-250-000-000 630.00 E 10-370-250-000-000 2,918.14 2,918.14 0058577 APR 2019 ON-CALL PLANNER SVCS 05/14/2019 E 10-450-245-000-000 400.00 400.00 400.00 76705 09/24/2019 MICHAEL BAKER INTERNATIONAL 0059672 JUN 2019 ON-CALL PLANNER SVCS 07/18/2019 E 10-175-257-010-000 375.00 375.00 375.00 76704 09/24/2019 GOPHER PATROL 354182 JUN19 GOPHER CONTROL AT PICO PARK 06/11/2019 E 10-140-250-000-000 843.36 843.36 843.36 76703 09/24/2019 EZ SUNNYDAY LANDSCAPE 17435 SEED INSTALL AND COVER ON HILL AT GRAND T 03/26/2019 E 10-190-212-000-000 299.01 299.01 838.59 76702 09/24/2019 ACCOUNTEMPS 53637098 ACCTG SRVS- WEEK ENDED 06/07/2019 06/12/2019 098000637 AUG19 WORKCENTRE 5955 USAGE CHARGES 09/01/2019 C.5.b Packet Pg. 83 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register 52966 E 26-604-250-000-000 73.80 369.00 38,058.04 E 26-601-250-000-000 73.80 E 26-602-250-000-000 73.80 E 26-603-250-000-000 73.80 525.00 52970 AUG 2016 ASSESSMENT DISTRICT LEGAL SVCS 08/27/2019 E 26-600-250-000-000 73.80 E 10-160-250-100-000 1,066.00 1,066.00 AUG 2019 SPEC. PROJ. LEGAL SERVICES 08/27/2019 E 10-160-250-100-000 525.00 E 10-160-250-000-000 1,172.50 1,172.50 52972 AUG 2019 FRANCHISE-CABLE LEGAL SVCS 08/27/2019 E 10-160-250-100-000 1,250.50 1,250.50 52969A AUG 2019 PW - ENGINEERING LEGAL SVCS 08/27/2019 E 46-900-325-010-000 105.00 1,312.50 52971 AUG 2019 REFUSE LEGAL SERVICES 08/27/2019 E 10-625-220-000-000 245.00 E 15-500-255-000-000 840.00 E 16-510-255-000-000 122.50 E 10-160-250-000-000 2,068.62 2,068.62 52969B AUG 2019 PW - ENGINEERING LEGAL SVCS 08/27/2019 E 10-160-250-000-000 3,432.50 3,432.50 52967 AUG 2019 PERSONNEL LEGAL SERVICES 08/27/2019 E 10-160-250-000-000 4,982.50 4,982.50 52968 AUG 2019 PLANNING LEGAL SERVICES 08/27/2019 52965 AUG19 GENERAL LEGAL SERVICES 08/27/2019 C.5.b Packet Pg. 84 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register E 74-175-142-000-000 64.75 18,782.08 18,782.08 E 16-175-142-000-000 1,778.33 E 52-400-142-000-000 64.74 E 65-425-142-000-000 620.94 E 10-190-142-000-000 2,059.46 E 10-370-142-000-000 1,035.84 E 10-450-142-000-000 879.90 E 10-172-142-000-000 517.92 E 10-175-142-000-000 2,026.70 E 10-185-142-000-000 1,241.88 B 10-022-61-00 4,577.45 E 10-120-142-000-000 2,672.29 E 10-125-142-000-000 1,241.88 B 10-022-62-00 8,382.84 8,382.84 8,382.84 15773949 09/06/2019 CA PUB EMPLOYEES RETIRE SYST 09012019 HPERS SEP 19 HEALTH INSURANCE FOR EMPLOYEES/DE 09/01/2019 B 10-022-62-00 7,964.57 7,964.57 7,964.57 15723356 09/20/2019 PUBLIC EMPLOYEES RETIREMENT PAYDTE 082920 RETIREMENT CONTRIBUTIONS FOR PAY DATE 8/2 08/29/2019 E 10-110-142-000-000 135.50 135.50 135.50 15723338 09/06/2019 PUBLIC EMPLOYEES RETIREMENT PAYDTE 081520 RETIREMENT CONTRIBUTIONS FOR PAY DATE 8/08/15/2019 E 10-120-250-000-000 9,999.99 9,999.99 9,999.99 76710 09/24/2019 SYLVIA ROBLES SEP-2019-SR-1 SEP19 HEALTH REIMBURSEMENT 09/20/2019 E 10-110-142-000-000 513.54 513.54 513.54 76709 09/24/2019 MICHAEL BAKER INTERNATIONAL 1057222 JUL 2019 PROFESSIONAL SVCS 08/13/2019 76708 09/24/2019 DARCY MCNABOE OCT-2019-DM OCT 2019 HEALTH REIMBURSEMENT 09/23/2019 C.5.b Packet Pg. 85 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) Invoice #Inv. Date Amount Paid Check TotalCheck #Date Vendor Invoice Description Check Register Cynthia A. Fortune, Assistant City Manager City of Grand Terrace IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTION 37202, I HEREBY CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE, THE AFORE LISTED CHECKS FOR PAYMENT OF CITY LIABILITIES HAVE BEEN AUDITED BY ME AND ARE ACCURATE, NECESSARY AND APPROPRIATE EXPENDITURES FOR THE OPERATION OF THE CITY. I FURTHER CERTIFY, TO THE BEST OF MY KNOWLEDGE, THAT THE CITY HAS AVAILABLE FUNDS FOR PAYMENT THEREOF. 414.83 414.83 Total Checks:208,279.16 E 10-175-272-000-000 268.79 E 10-185-272-000-000 56.07 E 65-425-272-000-000 89.97 B 10-022-63-00 2,071.87 2,071.87 2,071.87 612168382 09/27/2019 WEX BANK 61216838-2 AUG-SEP19 VEHICLE FUEL CHEVRON 2 09/06/2019 B 10-022-63-00 2,071.87 2,071.87 2,071.87 15812002 09/20/2019 CALPERS 457 PLAN PAYDTE 082920 EMPLOYEE DEFERRED COMPENSATION 457 PLAN 08/29/2019 E 10-190-280-000-000 1,050.00 1,050.00 1,050.00 15792816 09/09/2019 CALPERS 457 PLAN PAYDTE 081520 EMPLOYEE DEFERRED COMPENSATION 457 PLAN 08/15/2019 15779377 09/06/2019 CALPERS 10000001577937 2019 GASB 68 FEES FOR REPORTS AND SCHEDU 08/20/2019 C.5.b Packet Pg. 86 At t a c h m e n t : S e p t - 2 0 1 9 C h e c k R e g i s t e r R e p o r t ( S e p t e m b e r - 2 0 1 9 C h e c k R e g i s t e r ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Treasurer's Report as of December 31, 2019 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Receive and file the Treasurer's Report for the period ending December 31, 2019. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The Treasurer’s Report of funds held as cash or invested by the City and the Successor Agency to the Community Redevelopment Agency should be presented to the governing body periodically. DISCUSSION: The purpose of the Treasurer’s Report is to provide the governing body with the following information: • Current cash position of the City and Successor Agency. • Identify where all cash is held and, if invested, provide information regarding the Book Value, PAR Value, Market Value, yield, and maturity: ▪ Book Value is the value of an asset as it is listed in the City’s balance sheet or statement of financial position. The book value of the City’s cash is the amount listed in the City’s bank statement as of December 31, 2019 and recorded in the City’s financial system. ▪ PAR value or face value is the value listed on an invested stock or bond. Had the City invested the cash in stocks or bonds, the PAR value would be the current value of the stocks or bonds. ▪ Market value of an investment is the amount that someone will pay for it now, or the sale price. The investment value calculates what the investment will earn and likely will be worth in the future. Had the City invested the cash in stocks or bonds, the investment would have both a PAR value and a Market value. C.6 Packet Pg. 87 ▪ Yield describes the amount in cash (in percentage terms) in the form of interest or dividends received from an investment in stocks or bonds. ▪ Maturity or maturity date refers to the payment date of a financial instrument (stock, bond, certificate of deposit (CD) at which point the principal (and all remaining interest) is due to be paid. ▪ The attached Treasurer’s Report as of December 31st indicates book, PAR and market value of total cash and investments. • Show that there are sufficient cash resources to make economic commitments for the next six months. One way the governing body can monitor the fiscal condition of the City and the Successor Agency is to review the cash position. The common benchmarks to do this, is to compare the current quarter to the prior quarter and the current quarter to the same quarter in the prior fiscal year. For the Treasurer’s Report of December 31, 2019, the quarter summary would be compared to September 30, 2019 and the annual summary would be compared to December 31, 2018. Information on the benefits of these two cash reporting comparison periods is provided below: Quarterly Change in Cash Position: This compares the cash position at the end of a quarter to the end of the prior quarter. The cyclical nature of revenues to the City and the Successor Agency versus the relatively constant nature of expenditures is shown in a quarterly comparison. An example of this would be property tax revenue of which the majority is received in December and May versus monthly labor and utility costs. Generally, the cash position tends to decrease in the first and second quarter of a fiscal year and to increase in the third and fourth quarters. One-time revenues such as bond proceeds may also be easier to highlight first in a quarterly change report. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Quarter Table 1 Description Sept 30 2019 Dec 31 2019 $Change % Chg Total Cash and Investments $ 25,194,582 $ 10,791,594 $(14,402,988) -57.2% Funds with Fiscal Agent 1,765,628 - (1,765,628) -100.0% Total $ 26,960,210 $ 10,791,594 $(16,168,616) -60.0% • As shown in the Table 1 above, the Cash & Investments Report indicates total cash C.6 Packet Pg. 88 and investments of $10,791,594 including funds with fiscal agent at December 31, 2019. This represents a decrease of $16,168,616 in cash and investments over the previous quarter. The decrease in cash was mainly due to the: ➢ The defeasance of the 2011 Tax Allocation Bonds Series A & Series B in the amount of $16,765,580. Of this amount, $1,765,902 were funds from available cash reserves with the Bond Fiscal Agent. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Year (Same Quarter) Table 2 Description Dec 31 2018 Dec 31 2019 $Change % Chg Total Cash and Investments $ 23,598,534 $ 10,791,594 $(12,806,940) -54.3% Funds with Fiscal Agent 1,765,532 - (1,765,532) -100.0% Total $ 25,364,066 $ 10,791,594 $(14,572,472) -57.5% • As shown in Table 2, the current cash position compared to a year ago on December 31, 2018 decreased by $14,572,472. The decrease in cash between the quarters ending December 2018 and December 2019 was mainly attributable to the: ➢ The payment of $16,765,580 in defeasance costs for the 2011 Tax Allocation Bonds Series A & Series B. Cash Balance by Fund The attached Treasurer’s Report at December 31, 2019 shows that 92.77% of the total cash and investments ($10,011,148) are City funds, while the remaining 7.23% or $ 780,446 are Successor Agency funds. City funds include the General Fund, Child Care Fund and other Special Revenue funds such as the Gas Tax Fund and the Measure “I” Fund. C.6 Packet Pg. 89 Below is the list of cash balances by Fund: CASH BALANCES BY FUND 12/31/2019 TABLE 3 FUND NO FUND DESCRIPTION CASH BALANCES 09 CHILD CARE CENTER FUND $93,859 10 GENERAL FUND 3,838,816 11 STREET FUND 689,058 12 STORM DRAIN FUND 283,367 13 PARK FUND 129,054 14 SLESF (AB3229 COPS) 90,691 15 AIR QUALITY IMPROVEMENT FUND (13,397) 16 GAS TAX FUND 195,354 17 TRAFFIC SAFETY FUND 12,959 19 FACILITIES FUND 381,555 20 MEASURE "I" FUND 101,258 21 WASTEWATER DISPOSAL FUND 625,453 22 CDBG (1,124) 23 REFUNDABLE DEPOSITS TRUST FUND 734,959 25 SPRING MOUNTAIN RANCH 801,885 26 LNDSCP & LGTG ASSESSMENT DIST 13,237 45 COMMERCE WAY PROJECT 848,262 46 CAPITAL IMPROVEMENTS - STREETS 31,280 48 CAPITAL PROJECTS FUND 73 49 CAPITAL PROJECTS FUND- PARKS 197,406 52 HOUSING AUTHORITY 925,907 61 COMMUNITY BENEFITS FUND 29,466 63 GT ILLEGAL FIREWORKS ENFORCEMENT 458 64 PUBLIC SAFETY FUND 21,935 65 SENIOR BUS PROGRAM FUND 18,876 66 CAL RECYCLE GRANT 9,192 67 PUBLIC, EDUCATIONAL & GOVT ACCESS 75,665 70 EQUIPMENT REPLACEMENT RESERVE FUND 1,016 74 HIGHWAY SFTY IMPROV PRGRM GRANT (2,664) 76 ENHANCED INFRA FIN DIST (EIFD) FUND (9,523) 77 SCIP (SO. CA INCENTIVE PROJ) GRANT (134,010) 95 DOG PARK ENDOWMENT FUND 20,825 TOTAL - CITY $10,011,148 31 S/A RDA OBLIGATION RETIREMENT FUND 324,203 36 2011 TABS A & B BOND PROCEEDS 456,243 TOTAL - SUCCESSOR AGENCY 780,446 TOTAL CASH & INVESTMENTS $10,791,594 The table below and the attached Treasurer’s Report also shows that the City of Grand Terrace (less Successor Agency funds) can meet its expenditure requirements for the C.6 Packet Pg. 90 next six months and that sufficient funds are available to meet its operating needs. CITY OF GRAND TERRACE CASH AND INVESTMENT REPORT As of December 31, 2019 Table 4 Description Amount Total Cash and Investments, City $10,011,148 FY2019-20 Adopted Budget $12,639,680 Less: Successor Agency Budget $4,130,400 Net, City budget $8,509,280 Cash required for six (6) months: ($8,509,280 / 2) $4,254,640 The City has sufficient cash to cover operating expenditures for a six-month period. As stated earlier in the report, the cash balances shown above are as of a certain date in time, specifically, December 31, 2019. FISCAL IMPACT: The purpose of the Treasurer’s Report is to provide information regarding the current cash and investment position of the City and the Successor Agency to the Community Redevelopment Agency. There is no fiscal impact to receiving and filing the report. ATTACHMENTS: • Treasurer's Report - Dec-2019 (XLSX) APPROVALS: Cynthia A. Fortune Completed 06/14/2020 10:15 AM Finance Completed 06/14/2020 10:16 AM City Attorney Completed 06/15/2020 1:39 PM City Manager Completed 06/18/2020 3:21 PM City Council Pending 06/23/2020 6:00 PM C.6 Packet Pg. 91 City of Grand Terrace & Successor Agency to the CRA of Grand Terrace Cash & Investment Report December 31, 2019 City Successor Agency Total PAR Market Yield Maturity California Asset Management Program 4,128,964 4,128,964 4,128,964 4,203,285 1.800%N/A State Treasurer- LAIF: City Account 2,848,575 2,848,575 2,848,575 2,906,771 2.043%N/A State Treasurer- LAIF: Successor Agency 96,042 96,042 96,042 115,663 2.043%N/A TOTAL FUNDS IN INVESTMENT POOLS 6,977,539 96,042 7,073,581 7,073,581 7,225,720 US BANK - Safekeeping- First American Treasury Fund 1,182 1,182 1,182 1,195 1.08%N/A Bank of America - Savings Acct. - Insured 50,298 50,298 50,298 50,313 0.03%N/A TOTAL FUNDS OTHER INVESTMENTS 51,480 0 51,480 51,480 51,508 TOTAL INVESTMENTS 7,029,019 96,042 7,125,061 7,125,061 7,277,228 Bank of America - Gen. Operating Acct. - Collateralized 2,979,210 683,861 3,663,071 3,663,071 3,663,071 0.000%N/A CitiEscrow Client Checking Acct. (Data Ticket)2,919 2,919 2,919 2,919 0.000%N/A Bank of America - Successor Agency Acct. - Insured 542 542 542 542 0.000%N/A TOTAL CASH 2,982,129 684,403 3,666,532 3,666,532 3,666,532 INVESTMENTS 7,029,019 96,043 7,125,062 7,125,061 7,277,228 CASH 2,982,129 684,403 3,666,532 3,666,532 3,666,532 TOTAL CASH & INVESTMENTS 10,011,148 780,446 10,791,594 10,791,593 10,943,760 CASH WITH FISCAL AGENT (RESERVE FUNDS) U.S. Bank - First American Treasury Obligations 2011A TABS 0 0 0 0 0 0.00%N/A U. S. Bank - First American Treasury Obligations 2011B TABS 0 0 0 0 0 0.00%N/A TOTAL FUNDS WITH FISCAL AGENT 0 0 0 0 0 TOTAL CASH, INVESTMENTS & CASH WITH FISCAL AGENT 10,011,148 780,446 10,791,594 10,791,593 10,943,760 92.77%7.23%100.00% C.6.a Packet Pg. 92 At t a c h m e n t : T r e a s u r e r ' s R e p o r t - D e c - 2 0 1 9 ( T r e a s u r e r ' s R e p o r t a s o f D e c e m b e r 3 1 , 2 0 1 9 ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Treasurer's Report as of March 31, 2020 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Receive and file the Treasurer's Report for the period ending March 31, 2020. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The Treasurer’s Report of funds held as cash or invested by the City and the Successor Agency to the Community Redevelopment Agency should be presented to the governing body periodically. DISCUSSION: The purpose of the Treasurer’s Report is to provide the governing body with the following information: • Current cash position of the City and Successor Agency. • Identify where all cash is held and, if invested, provide information regarding the Book Value, PAR Value, Market Value, yield, and maturity: ▪ Book Value is the value of an asset as it is listed in the City’s balance sheet or statement of financial position. The book value of the City’s cash is the amount listed in the City’s bank statement as of March 31, 2020 and recorded in the City’s financial system. ▪ PAR value or face value is the value listed on an invested stock or bond. Had the City invested the cash in stocks or bonds, the PAR value would be the current value of the stocks or bonds. ▪ Market value of an investment is the amount that someone will pay for it now, or the sale price. The investment value calculates what the investment will earn and likely will be worth in the future. Had the City invested the cash in stocks or bonds, the investment would have both a PAR value and a Market value. C.7 Packet Pg. 93 ▪ Yield describes the amount in cash (in percentage terms) in the form of interest or dividends received from an investment in stocks or bonds. ▪ Maturity or maturity date refers to the payment date of a financial instrument (stock, bond, certificate of deposit (CD) at which point the principal (and all remaining interest) is due to be paid. ▪ The attached Treasurer’s Report as of March 31st indicates book, PAR and market value of total cash and investments. • Show that there are sufficient cash resources to make economic commitments for the next six months. One way the governing body can monitor the fiscal condition of the City and the Successor Agency is to review the cash position. The common benchmarks to do this, is to compare the current quarter to the prior quarter and the current quarter to the same quarter in the prior fiscal year. For the Treasurer’s Report of March 31, 2020, the quarter summary would be compared to December 31, 2019 and the annual summary would be compared to March 31, 2019. Information on the benefits of these two cash reporting comparison periods is provided below: Quarterly Change in Cash Position: This compares the cash position at the end of a quarter to the end of the prior quarter. The cyclical nature of revenues to the City and the Successor Agency versus the relatively constant nature of expenditures is shown in a quarterly comparison. An example of this would be property tax revenue of which the majority is received in December and May versus monthly labor and utility costs. Generally, the cash position tends to decrease in the first and second quarter of a fiscal year and to increase in the third and fourth quarters. One-time revenues such as bond proceeds may also be easier to highlight first in a quarterly change report. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Quarter Table 1 Description Dec 31 2019 Mar 31 2020 $Change % Chg Total Cash and Investments $ 10,791,594 $ 10,545,051 $ (246,543) -2.3% Funds with Fiscal Agent - - - 0.0% Total $ 10,791,594 $ 10,545,051 $ (246,543) -2.3% • As shown in the Table 1 above, the Cash & Investments Report indicates total cash and investments of $10,545,051. This represents a decrease of $246,543 in cash C.7 Packet Pg. 94 and investments over the previous quarter. The decrease in cash was mainly due to the: ➢ The settlement & release agreement payment made to San Bernardino Valley Municipal Water District in the amount of $240,298 on January 27, 2020. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Year (Same Quarter) Table 2 Description Mar 31 2019 Mar 31 2020 $Change % Chg Total Cash and Investments $ 24,989,763 $ 10,545,051 $(14,444,712) -57.8% Funds with Fiscal Agent 1,763,016 - (1,763,016) -100.0% Total $ 26,752,779 $ 10,545,051 $(16,207,728) -60.6% • As shown in Table 2, the current cash position compared to a year ago on March 31, 2019 decreased by $16,207,728. The decrease in cash between the quarters ending March 2019 and March 2020 was mainly attributable to the following reason: ➢ The payment of $16,765,580 for the defeasance of the 2011 Tax Allocation Bonds Series A & Series B in October, 2019. The total amount paid included the $1,765,902 in available cash reserves with the bond fiscal agent. Cash Balance by Fund The attached Treasurer’s Report at March 31, 2020 shows that 95.29% of the total cash and investments ($10,048,348) are City funds, while the remaining 4.71% or $ 496,703 are Successor Agency funds. City funds include the General Fund, Child Care Fund and other Special Revenue funds such as the Gas Tax Fund and the Measure “I” Fund. C.7 Packet Pg. 95 Below is the list of cash balances by Fund: CASH BALANCES BY FUND 3/31/2020 TABLE 3 FUND NO FUND DESCRIPTION CASH BALANCES 09 CHILD CARE CENTER FUND $9,409.00 10 GENERAL FUND 3,965,302.00 11 STREET FUND 693,534.00 12 STORM DRAIN FUND 286,703.00 13 PARK FUND 111,295.00 14 SLESF (AB3229 COPS) 106,842.00 15 AIR QUALITY IMPROVEMENT FUND (11,606.00) 16 GAS TAX FUND 198,469.00 17 TRAFFIC SAFETY FUND 12,837.00 19 FACILITIES FUND 382,229.00 20 MEASURE "I" FUND 131,294.00 21 WASTEWATER DISPOSAL FUND 625,453.00 22 CDBG (25,051.00) 23 REFUNDABLE DEPOSITS TRUST FUND 741,056.00 25 SPRING MOUNTAIN RANCH 794,684.00 26 LNDSCP & LGTG ASSESSMENT DIST 22,043.00 45 COMMERCE WAY PROJECT 848,262.00 46 CAPITAL IMPROVEMENTS - STREETS (68,482.00) 48 CAPITAL PROJECTS FUND 73.00 49 CAPITAL PROJECTS FUND- PARKS 222,406.00 52 HOUSING AUTHORITY 971,177.00 61 COMMUNITY BENEFITS FUND 28,469.00 63 GT ILLEGAL FIREWORKS ENFORCEMENT 223.00 64 PUBLIC SAFETY FUND 21,935.00 65 SENIOR BUS PROGRAM FUND 23,369.00 66 CAL RECYCLE GRANT 9,192.00 67 PUBLIC, EDUCATIONAL & GOVT ACCESS 81,116.00 70 EQUIPMENT REPLACEMENT RESERVE FUND 1,016.00 74 HIGHWAY SFTY IMPROV PRGRM GRANT (12,208.00) 76 ENHANCED INFRA FIN DIST (EIFD) FUND (9,523.00) 77 SCIP (SO. CA INCENTIVE PROJ) GRANT (134,010.00) 95 DOG PARK ENDOWMENT FUND 20,840.00 TOTAL - CITY $10,048,348.00 31 S/A RDA OBLIGATION RETIREMENT FUND 33,197.00 36 2011 TABS A & B BOND PROCEEDS 463,506.00 TOTAL - SUCCESSOR AGENCY $496,703.00 TOTAL CASH & INVESTMENTS $10,545,051.00 The table below and the attached Treasurer’s Report also shows that the City of Grand Terrace (less Successor Agency funds) can meet its expenditure requirements for the C.7 Packet Pg. 96 next six months and that sufficient funds are available to meet its operating needs. CITY OF GRAND TERRACE CASH AND INVESTMENT REPORT As of March 31, 2020 Table 4 Description Amount Total Cash and Investments, City $10,048,348 FY2019-20 Adopted Budget $12,639,680 Less: Successor Agency Budget $4,130,400 Net, City budget $8,509,280 Cash required for six (6) months: ($8,509,280 / 2) $4,254,640 The City has sufficient cash to cover operating expenditures for a six-month period. As stated earlier in the report, the cash balances shown above are as of a certain date in time, specifically, March 31, 2019. FISCAL IMPACT: The purpose of the Treasurer’s Report is to provide information regarding the current cash and investment position of the City and the Successor Agency to the Community Redevelopment Agency. There is no fiscal impact to receiving and filing the report. ATTACHMENTS: • Treasurer's Report - Mar-2020 (XLSX) APPROVALS: Cynthia A. Fortune Completed 06/14/2020 11:11 AM Finance Completed 06/14/2020 11:11 AM City Attorney Completed 06/15/2020 2:00 PM City Manager Completed 06/18/2020 3:23 PM City Council Pending 06/23/2020 6:00 PM C.7 Packet Pg. 97 City of Grand Terrace & Successor Agency to the CRA of Grand Terrace Cash & Investment Report March 31, 2020 City Successor Agency Total PAR Market Yield Maturity California Asset Management Program 4,146,173 4,146,173 4,146,173 4,208,366 1.500%N/A State Treasurer- LAIF: City Account 2,872,999 2,872,999 2,872,999 2,924,339 1.787%N/A State Treasurer- LAIF: Successor Agency 103,305 103,305 103,305 184,606 1.787%N/A TOTAL FUNDS IN INVESTMENT POOLS 7,019,172 103,305 7,122,477 7,122,477 7,317,311 US BANK - Safekeeping- First American Treasury Fund 1,185 1,185 1,185 1,197 1.01%N/A Bank of America - Savings Acct. - Insured 50,302 50,302 50,302 50,317 0.03%N/A TOTAL FUNDS OTHER INVESTMENTS 51,487 0 51,487 51,487 51,514 TOTAL INVESTMENTS 7,070,659 103,305 7,173,964 7,173,964 7,368,825 Bank of America - Gen. Operating Acct. - Collateralized 2,975,304 392,855 3,368,159 3,368,159 3,368,159 0.000%N/A CitiEscrow Client Checking Acct. (Data Ticket)2,385 2,385 2,385 2,385 0.000%N/A Bank of America - Successor Agency Acct. - Insured 542 542 542 542 0.000%N/A TOTAL CASH 2,977,689 393,397 3,371,086 3,371,086 3,371,086 INVESTMENTS 7,070,659 103,306 7,173,964 7,173,964 7,368,825 CASH 2,977,689 393,397 3,371,086 3,371,086 3,371,086 TOTAL CASH & INVESTMENTS 10,048,348 496,703 10,545,051 10,545,050 10,739,911 CASH WITH FISCAL AGENT (RESERVE FUNDS) U.S. Bank - First American Treasury Obligations 2011A TABS 0 0 0 0 0 0.00%N/A U. S. Bank - First American Treasury Obligations 2011B TABS 0 0 0 0 0 0.00%N/A TOTAL FUNDS WITH FISCAL AGENT 0 0 0 0 0 TOTAL CASH, INVESTMENTS & CASH WITH FISCAL AGENT 10,048,348 496,703 10,545,051 10,545,050 10,739,911 95.29%4.71%100.00% C.7.a Packet Pg. 98 At t a c h m e n t : T r e a s u r e r ' s R e p o r t - M a r - 2 0 2 0 ( T r e a s u r e r ' s R e p o r t a s o f M a r c h 3 1 , 2 0 2 0 ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Auditor's Annual Financial Report for the Fiscal Year Ended June 30, 2019 PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Receive and file the Auditor’s Annual Financial Report and related documents for the fiscal year ended June 30, 2019. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: Each year, the City has an independent audit conducted of its financial statements and related internal control procedures. The audit for the fiscal year ended June 30, 2019 has been completed and the Annual Financial Report issued by the City’s auditor, Lance, Soll & Lunghard, LLP. DISCUSSION: One of the key aspects of any annual financial audit is the Independent Auditor’s Report, which is provided on page 1 of the Annual Audit Report (Exhibit A). The Independent Auditor’s Report provides its opinion on whether or not the financial statements fairly present, 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 as of the end of the fiscal year, and the respective changes in financial position and cash flows, where applicable, in conformance with Generally Accepted Accounting Principles (GAAP). The resulting “opinion letter” is either unqualified or qualified. The “opinion letter” received by the City for its financial statements for the period ended June 30, 2019 is unqualified, indicating that the financial statements fairly represent the City’s financial position in accordance with GAAP. In addition to the Annual Financial Report, the independent auditor issues other related documents, which are summarized below: C.8 Packet Pg. 99 • Audit Communication Letter (Exhibit B) The audit communications letter discusses the auditor’s responsibilities under Government Auditing Standards and any significant issues encountered during the audit that warrant disclosure. None of the misstatements detected as a result of the audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Corrected and Uncorrected Misstatements All known and likely misstatements recognized during the audit are reported to the City. For FY2018-19, one misstatement was identified in relation to the recording of sales tax revenues. As a general rule, sales tax allocations to the City from the California State Board of Equalization (BOE) are 60 days after the intended month of allocation: meaning, the sales tax allocation for the month of July is normally received in September and recorded as the July allocation. This is the standard receipt process throughout the fiscal year making the May allocation received in July, and the June allocation received in month of August. At the close of a fiscal year in June, standard accounting practices allow for a 60- day accrual period after June 30th for delayed receipts and invoices that need to be processed, until August 31st. The June-2018 sales tax allocation was received in October-2018, several months passed the last accrual date of August 31st. Based on the lateness of the revenue, City staff recorded the FY2017-18 June sales tax allocation of $44,200 as a FY2018-19 sales tax receipt. The City auditors stated that the $44,200 was a material amount designated for the 2017- 28 fiscal year and although received late, should have been booked in FY2017- 28. The June-2018 sales tax allocation was removed from FY2018-29 and recorded as a receipt in revenue for FY2017-18. • Internal Control & Compliance Report (Exhibit C) The Internal Control & Compliance Report identifies any material internal control deficiencies that impact the financial statements. The results of the tests performed by the City auditors resulted in the following instance of noncompliance that is required to be reported under Government Auditing Standards: Land Held for Resale The Auditors noted that the City had purchased a parcel of land in the amount of $665,000 from the Housing Authority and recorded the purchase as land. Since it was noted that the parcel was being resold within the next fiscal year, it should have been classified as Land held for Resale. C.8 Packet Pg. 100 Background and Discussion. • The City’s standard practice in recording the purchase of land in governmental funds has been to record land purchases in the Government Fixed Asset Account Group (GFAAG), in the Account named “Land.” • This recordation was miscategorized and should have been recorded in “Land Held for Resale” and shown in the General Fund’s Balance Sheet. Staff has since corrected the transaction; for future, transactions similar to the above, staff will carefully review procedures for capitalizing fixed assets, and prior to the close of the fiscal year, re- review the year’s capitalized and classified fixed asset transactions. FISCAL IMPACT: There is no fiscal impact associated with the receipt of the Annual Financial Report and related documents for the year ended June 30, 2019. ATTACHMENTS: • Exhibit-A - Annual Financial Report Ending June 30, 2019 (PDF) • Exhibit-B - Audit Communication Letter (PDF) • Exhibit-C - Report on Internal Control (PDF) APPROVALS: Cynthia A. Fortune Completed 06/17/2020 11:53 AM Finance Completed 06/17/2020 11:53 AM City Attorney Completed 06/17/2020 12:47 PM City Manager Completed 06/18/2020 3:23 PM City Council Pending 06/23/2020 6:00 PM C.8 Packet Pg. 101 &,7<2)*5$1'7(55$&(&$/,)251,$ )257+(),6&$/<($5(1'('-81($118$/),1$1&,$/5(3257 C.8.a Packet Pg. 102 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) THIS PAGE INTENTIONALLY LEFT BLANK C.8.a Packet Pg. 103 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&(&$/,)251,$ $118$/),1$1&,$/5(3257 )257+(),6&$/<($5(1'('-81( C.8.a Packet Pg. 104 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) THIS PAGE INTENTIONALLY LEFT BLANK C.8.a Packet Pg. 105 At t a c h m e n t : E x h i b i t - 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A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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¶VQHWSHQVLRQ OLDELOLW\GHFUHDVHGE\IURPLQWKHSULRUILVFDO\HDUWRDWWKHHQG RI-XQH7KH&LW\¶VRWKHUSRVWHPSOR\PHQWEHQHILWV23(%REOLJDWLRQVLQFUHDVHGE\ IURPDWWKHHQGRI)<WRDWWKHHQGRI)< 7KH&LW\¶VOLDELOLW\IRUFRPSHQVDWHGDEVHQFHVLQFUHDVHGE\FRPSDUHGWRWKHSULRUILVFDO \HDUIURPWRDWWKHHQGRI-XQH $GGLWLRQDO LQIRUPDWLRQ RQ WKH &LW\¶V ORQJWHUP GHEW FDQ EH IRXQG LQ WKH QRWHV WR WKH DFFRPSDQ\LQJILQDQFLDOVWDWHPHQWV 15 C.8.a Packet Pg. 122 At t a c h m e n t : E x h i b i t - 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A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) (FRQRPLF)DFWRUVDQG2XWORRNIRU)XWXUH<HDUV&RQWLQXHG 7KH &LW\ FRQWLQXHV WR VHH DGGLWLRQDO UHYHQXHV PDWHULDOL]H IRU 5HVWULFWHG6SHFLDO 3XUSRVH )XQGVDOORFDWHGWRLWDIWHUDSSURYDORIWKH&LW\¶V/DVWDQG)LQDO52367KH&LW\ZLOOXVH WKHVHIXQGVWRFRQWLQXHWRDGYDQFHLWVORQJWHUPHFRQRPLFVWUDWHJ\ZLWKIXQGVHDUPDUNHG LQIUDVWUXFWXUHHFRQRPLFGHYHORSPHQWDQGHOLPLQDWLRQRIEOLJKW$VLJQLILFDQWDPRXQWRIWKH IXQGVZLOOEHXVHGIRULQIUDVWUXFWXUHDQGHFRQRPLFGHYHORSPHQW6%5RDG5HSDLU 5HKDE 3URJUDPZLOODOORZWKH&LW\WRDFFHOHUDWHWKHUHSDLURIWKH&LW\¶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¶VJRDORIHFRQRPLFJURZWKIRURXUHQWLUHFRPPXQLW\VWDIILV DQWLFLSDWLQJDPDMRUUROHIRUWKH&LW\¶V+RXVLQJ6XFFHVVRU$JHQF\LQWKHFRPLQJ\HDUVDVWKH &LW\PRYHVWRSURPRWHHFRQRPLFGHYHORSPHQWDQGKRXVLQJIRUDOO7KH+RXVLQJ6XFFHVVRU $JHQF\KDVRYHULQFDVKLQDGGLWLRQWRDVVHWVZKLFKZLOODOORZLWWRFDUU\RXWWKH DJHQF\¶VSROLFLHV 7KH&LW\¶V)LYH<HDU)LQDQFLDO$QDO\VLVLVVXVWDLQDEOHDVORQJDV ¾ 5HYHQXHLQFUHDVHVRXWSDFHDQQXDOLQFUHDVHVRIH[SHQVHV ¾ 1RQHZSURJUDPVDUHLPSOHPHQWHGZLWKRXWDQHZVRXUFHRIUHYHQXH ¾ 3URMHFWVIRU%DUWRQ5RDGUHWDLOVSDFHPDWHULDOL]HV 17 C.8.a Packet Pg. 124 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) THIS PAGE INTENTIONALLY LEFT BLANK 18 C.8.a Packet Pg. 125 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) CITY OF GRAND TERRACE STATEMENT OF NET POSITION Governmental Business-Type Activities Activities Total Assets: Cash and investments 8,916,430$ 620,688$ 9,537,118$ Receivables: Accounts 156,376 -156,376 Notes and loans 778,843 -778,843 Accrued interest 17,956 -17,956 Internal balances (938,772) 938,772 - Prepaid costs 19,611 -19,611 Due from other governments 793,153 -793,153 Land held for resale 665,000 -665,000 Capital assets not being depreciated 3,882,998 - 3,882,998 Capital assets, net of depreciation 7,307,544 4,619,698 11,927,242 Total Assets 21,599,139 6,179,158 27,778,297 Deferred Outflows of Resources: Deferred pension related items 983,832 -983,832 Deferred OPEB related items 51,634 -51,634 Total Deferred Outflows of Resources 1,035,466 - 1,035,466 Liabilities: Accounts payable 396,019 -396,019 Accrued liabilities 82,298 - 82,298 Deposits payable 25,559 6,875 32,434 Due to other governments 946,437 -946,437 Noncurrent liabilities: Due within one year Compensated absences 40,376 -40,376 Due in more than one year Compensated absences 133,725 -133,725 Total OPEB liability 1,344,639 - 1,344,639 Net pension liability 4,891,935 - 4,891,935 Total Liabilities 7,860,988 6,875 7,867,863 Deferred Inflows of Resources: Deferred pension related items 548,092 -548,092 Deferred OPEB related items 29,487 -29,487 Total Deferred Inflows of Resources 577,579 -577,579 Net Position: Invested in capital assets 11,190,542 4,619,698 15,810,240 Restricted for: Community development projects 3,284,050 - 3,284,050 Public safety 25,741 -25,741 Public works 3,121,513 - 3,121,513 Child care 243,120 -243,120 Unrestricted (3,668,928) 1,552,585 (2,116,343) Total Net Position 14,196,038$ 6,172,283$ 20,368,321$ JUNE 30, 2019 Primary Government See Notes to Financial Statements 19 C.8.a Packet Pg. 126 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 127 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) 3ULPDU\*RYHUQPHQW *RYHUQPHQWDO %XVLQHVV7\SH $FWLYLWLHV $FWLYLWLHV 7RWDO 1HW([SHQVHV5HYHQXHVDQG&KDQJHVLQ1HW 3RVLWLRQ 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV 21 C.8.a Packet Pg. 128 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %$/$1&(6+((7 *29(510(17$/)81'6 -81( 2WKHU 7RWDO *RYHUQPHQWDO *RYHUQPHQWDO *HQHUDO )XQGV )XQGV $VVHWV &DVKDQGLQYHVWPHQWV 5HFHLYDEOHV $FFUXHGUHYHQXH 1RWHVDQGORDQVUHFHLYDEOH ,QWHUHVWUHFHLYDEOH 3UHSDLGFRVWV 'XHIURPRWKHUIXQGV 'XHIURPRWKHUJRYHUQPHQWV $GYDQFHVWRRWKHUIXQGV /DQGKHOGIRUUHVDOH 7RWDO$VVHWV /LDELOLWLHV'HIHUUHG,QIORZVRI5HVRXUFHV DQG)XQG%DODQFHV /LDELOLWLHV $FFRXQWVSD\DEOH $FFUXHGOLDELOLWLHV 'XHWRRWKHUIXQGV 'XHWRRWKHUJRYHUQPHQWV $GYDQFHVIURPRWKHUIXQGV 5HIXQGDEOHGHSRVLWV 7RWDO/LDELOLWLHV 'HIHUUHG,QIORZVRI5HVRXUFHV 8QDYDLODEOHUHYHQXHV 7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV )XQG%DODQFHV 1RQVSHQGDEOH 3UHSDLGFRVWV 1RWHVDQGORDQV 5HVWULFWHGIRU&RPPXQLW\GHYHORSPHQWSURMHFWV 3XEOLFVDIHW\ 3XEOLFZRUNV &KLOG&DUH ,QIUDVWUXFWXUHSURMHFWV &RPPLWWHGWR &RPPLWWHGWRFRQWLQJHQFLHV &RPPLWWHGWRHTXLSPHQWUHSODFHPHQW &RPPLWWHGWRFRPPXQLW\VHUYLFHV &RPPLWWHGWRDGGLWLRQDOSXEOLFVDIHW\ 8QDVVLJQHG 7RWDO)XQG%DODQFHV 7RWDO/LDELOLWLHV'HIHUUHG,QIORZVRI 5HVRXUFHVDQG)XQG%DODQFHV 6SHFLDO5HYHQXH)XQGV 6WUHHW ,PSURYHPHQW +RXVLQJ $XWKRULW\ 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV 22 C.8.a Packet Pg. 129 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 130 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 131 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) CITY OF GRAND TERRACE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019 Net change in fund balances - total governmental funds 785,979$ 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 and reported as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. The activity is reconciled as follows: Cost of assets capitalized 553,245$ Depreciation expense (789,850) Disposition of capital assets (496,210) (732,815) 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. Change in compensated absences payable (8,372) Governmental funds report all contributions in relation to the actuarially determined contribution for OPEB as expenditures, however in the statement of activities only the annual OPEB cost is an expense.(119,304) Pension obligation 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.221,603 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.(41,028) Change in Net Position of Governmental Activities 106,063$ See Notes to Financial Statements 25 C.8.a Packet Pg. 132 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( 67$7(0(172)1(7326,7,21 35235,(7$5<)81'6 -81( $VVHWV &XUUHQW &DVKDQGLQYHVWPHQWV 7RWDO&XUUHQW$VVHWV 1RQFXUUHQW $GYDQFHVWRRWKHUIXQGV &DSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQ 7RWDO1RQFXUUHQW$VVHWV 7RWDO$VVHWV /LDELOLWLHVDQG1HW3RVLWLRQ /LDELOLWLHV 'HSRVLWVSD\DEOH 7RWDO/LDELOLWLHV 1HW3RVLWLRQ 1HWLQYHVWPHQWLQFDSLWDODVVHWV 8QUHVWULFWHG 7RWDO1HW3RVLWLRQ 7RWDO/LDELOLWLHVDQG1HW3RVLWLRQ %XVLQHVV7\SH $FWLYLWLHV :DVWH:DWHU 'LVSRVDO 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV 26 C.8.a Packet Pg. 133 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 134 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 135 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 136 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) CITY OF GRAND TERRACE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 Additions: RPTTF distribution 2,054,163$ Investment earnings 428,506 Total Additions 2,482,669 Deductions: Administrative expenses 16,642 Contractual services 308,633 Debt service payments - interest 1,079,113 Payments of enforceable obligations 74,559 Loss on sale of land held for resale 29,546 Total Deductions 1,508,493 Changes in Net Position 974,176 Net Position - Beginning of the Year 968,287 Net Position - End of the Year 1,942,463$ Private- Purpose Trust Fund Successor Agency Private Purpose Trust Fund See Notes to Financial Statements 30 C.8.a Packet Pg. 137 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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¶V HOHFWHGRIILFLDOVKDYHDFRQWLQXLQJIXOORUSDUWLDODFFRXQWDELOLW\IRUILVFDOPDWWHUVRIWKH $XWKRULW\7KHILQDQFLDOUHSRUWLQJHQWLW\FRQVLVWVRIWKH&LW\RUJDQL]DWLRQVIRUZKLFK WKH &LW\ LV ILQDQFLDOO\ DFFRXQWDEOH DQG RUJDQL]DWLRQV IRU ZKLFK WKH QDWXUH DQG VLJQLILFDQFHRIWKHLUUHODWLRQVKLSZLWKWKH&LW\DUHVXFKWKDWH[FOXVLRQVZRXOGFDXVHWKH &LW\¶VILQDQFLDOVWDWHPHQWVWREHPLVOHDGLQJRULQFRPSOHWH $QRUJDQL]DWLRQLVILVFDOO\GHSHQGHQWRQWKHSULPDU\JRYHUQPHQWLILWLVXQDEOHWRDGRSWD EXGJHWOHY\WD[HVRUVHWUDWHVRUFKDUJHVRULVVXHERQGHGGHEWZLWKRXWDSSURYDOE\WKH SULPDU\JRYHUQPHQW,QDEOHQGHGSUHVHQWDWLRQFRPSRQHQWXQLWEDODQFHVDQGWUDQVDFWLRQV DUHUHSRUWHGLQDPDQQHUVLPLODUWRWKHEDODQFHVDQGWUDQVDFWLRQVRIWKH&LW\&RPSRQHQW XQLWVDUHSUHVHQWHGRQDEOHQGHGEDVLVZKHQWKHFRPSRQHQWXQLW¶VJRYHUQLQJERG\LV VXEVWDQWLDOO\WKHVDPHDVWKH&LW\¶VRUWKHFRPSRQHQWXQLWSURYLGHVVHUYLFHVDOPRVWHQWLUHO\ WRWKH&LW\7KHIROORZLQJFRPSRQHQWXQLWVRIWKH&LW\KDYHEHHQLQFOXGHGLQWKHILQDQFLDO UHSRUWLQJHQWLW\DVEOHQGHGFRPSRQHQWXQLWV City of Grand Terrace Public Financing Authority 7KH *UDQG 7HUUDFH 3XEOLF )LQDQFLQJ $XWKRULW\ WKH $XWKRULW\ ZDV HVWDEOLVKHG RQ -XO\ SXUVXDQW WR D -RLQW 3RZHUV $JUHHPHQW EHWZHHQ WKH &LW\ RI *UDQG 7HUUDFH DQG WKH IRUPHU &RPPXQLW\ 5HGHYHORSPHQW $JHQF\ RIWKH &LW\ RI *UDQG 7HUUDFH 7KH $XWKRULW\ ZDV FUHDWHG WR IDFLOLWDWH ILQDQFLQJ RI SXEOLF FDSLWDO LPSURYHPHQWVEHQHILWLQJWKH&LW\DQGWKHIRUPHU5'$7KH&LW\&RXQFLODOVRDFWVDV WKHJRYHUQLQJERG\RIWKH$XWKRULW\7KH$XWKRULW\¶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a Packet Pg. 138 At t a c h m e n t : E x h i b i t - 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A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 147 At t a c h m e n t : E x h i b i t - 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A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( 127(672),1$1&,$/67$7(0(176&217,18(' )257+(<($5(1'('-81( 1RWH &DVKDQG,QYHVWPHQWV&RQWLQXHG /RFDO*RYHUQPHQW,QYHVWPHQW3RRO 7KH &LW\ LV D YROXQWDU\ SDUWLFLSDQW LQ WKH /RFDO *RYHUQPHQW ,QYHVWPHQW 3RRO ³&$03´ &DOLIRUQLD $VVHW 0DQDJHPHQW 3URJUDP &$03 LV D &DOLIRUQLD -RLQW 3RZHUV $XWKRULW\HVWDEOLVKHGWRSURYLGHSXEOLFDJHQFLHVZLWKSURIHVVLRQDOLQYHVWPHQWVHUYLFHV DQGLVGLUHFWHGE\D%RDUGRI7UXVWHHVZKLFKLVPDGHXSRIH[SHULHQFHGORFDOJRYHUQPHQW ILQDQFHGLUHFWRUVDQGWUHDVXUHUV7KH&$033RROLVDSHUPLWWHGLQYHVWPHQWIRUDOOORFDO DJHQFLHVXQGHU&DOLIRUQLD*RYHUQPHQW&RGH6HFWLRQS 7KH&LW\UHSRUWVLWVVKDUHLQWKHLQYHVWPHQWSRRODWWKHHVWLPDWHGIDLUPDUNHWYDOXH$VRI -XQHWKH&LW\¶VVKDUHRIWKH3RRODVGHWHUPLQHGE\&$03LV ,QFOXGHG LQ WKH &$03¶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a Packet Pg. 151 At t a c h m e n t : E x h i b i t - 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A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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± 3DUNV IURP WKH 3DUN'HYHORSPHQWIXQGIRUWKH%OXH0RXQWDLQ7ULDO3URMHFW7UDQVIHUVLQWKHDPRXQW RIZHUHPDGHWRWKH6HQLRU%XV3URJUDP)XQGIRUDGGLWLRQDOIXQGLQJIURPWKH $LU 4XDOLW\ ,PSURYHPHQW IXQG 7UDQVIHUV LQ WKH DPRXQW RI WR WKH &DSLWDO,PSURYHPHQW6WUHHWV)XQGIURPWKH*DV7D[IXQGIRUWKH6OXUU\6HDO3URMHFW 7UDQVIHUVLQWKHDPRXQWRIIURPWKH&DSLWDO,PSURYHPHQW6WUHHWVWRWKH &DSLWDO3URMHFWV±&RPPHUFH:D\3URMHFWIXQGWRHVWDEOLVKWKHIXQG 46 C.8.a Packet Pg. 153 At t a c h m e n t : E x h i b i t - 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A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 167 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( 127(672),1$1&,$/67$7(0(176&217,18(' <($5(1'('-81( 1RWH 6XFFHVVRU$JHQF\3ULYDWH3XUSRVH7UXVW)XQGWRWKH)RUPHU5HGHYHORSPHQW$JHQF\ &RQWLQXHG 7KH $ 7D[ $OORFDWLRQ %RQG ZDV WUDQVIHUUHG WR WKH 6XFFHVVRU $JHQF\ RQ )HEUXDU\DVDUHVXOWRIWKH5HGHYHORSPHQW$JHQF\FORVXUH7KHEDODQFHDW -XQHDPRXQWHGWR 'HEWVHUYLFHSD\PHQWVWRPDWXULW\IRUWKH$7D[$OORFDWLRQ%RQGVDUHDVIROORZV <HDU(QGLQJ-XQH3ULQFLSDO ,QWHUHVW 7RWDO %7D[$OORFDWLRQ%RQGV ,Q-XQHRIWKHIRUPHU&5$LVVXHGWKH&RPPXQLW\5HGHYHORSPHQW 3URMHFW$UHD7D[DEOH7D[$OORFDWLRQ%RQGV,VVXHRI%7KH%RQGVZHUHLVVXHGIRU WKHSXUSRVHRIDFTXLULQJODQGIRUUHVDOHDQGGHYHORSPHQWLQWKH3URMHFW$UHD,QWHUHVW YDULHVIURPWRDQGLVSD\DEOHVHPLDQQXDOO\RQ0DUFKDQG6HSWHPEHU FRPPHQFLQJ6HSWHPEHU3ULQFLSDOSD\PHQWVDUHGXHDQQXDOO\FRPPHQFLQJ 6HSWHPEHU WKURXJK 6HSWHPEHU 7KH %RQGV DUH SD\DEOH IURP DQG VHFXUHGE\DSOHGJHRI7D[,QFUHPHQWOHVVDPRXQWVUHTXLUHGWRPDNHSD\PHQWVXQGHU WKH 3DVV7KURXJK $JUHHPHQWV DQQXDO GHEW VHUYLFH RI WKH %RQGV DQG WKH +RXVLQJ6HW$VLGH$PRXQW7KH%7D[$OORFDWLRQ%RQGZDVWUDQVIHUUHGWRWKH 6XFFHVVRU $JHQF\ RQ )HEUXDU\ DV D UHVXOW RI WKH 5HGHYHORSPHQW $JHQF\ FORVXUH7KHEDODQFHDW-XQHDPRXQWHGWR 'HEWVHUYLFHSD\PHQWVWRPDWXULW\IRUWKH%7D[DEOH7D[$OORFDWLRQ%RQGVDUHDV IROORZV <HDU(QGLQJ-XQH 3ULQFLSDO ,QWHUHVW 7RWDO 61 C.8.a Packet Pg. 168 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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¶VIXWXUHWD[UHYHQXHVLQFOXGHGLVUXSWLRQVRUUHVWULFWLRQVRQ &LW\FXUUHQWHPSOR\HHV DELOLW\WRZRUN7KHHFRQRPLFLPSDFWVDVVRFLDWHGZLWK&29,' LV GLIILFXOW WR SUHGLFW DW WKLV SRLQW 2Q $SULO WKH &LW\ &RXQFLO DGRSWHG 5HVROXWLRQ1RGHFODULQJDILVFDOHPHUJHQF\UHODWHGWRWKHLQFUHDVHVSUHDGRI &29,'DQGGLUHFWLQJWKH&LW\0DQDJHUWRUHVHDUFKUHYLHZDQGSUHVHQWWR&LW\&RXQFLO IRUDSSURYDOEXGJHWFXWWRPLWLJDWHWKHILVFDOLPSDFWVWRWKH)<DQG)< EXGJHWV 62 C.8.a Packet Pg. 169 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) THIS PAGE INTENTIONALLY LEFT BLANK 63 C.8.a Packet Pg. 170 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 171 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) CITY OF GRAND TERRACE SCHEDULE OF PLAN CONTRIBUTIONS 2015 2016 2017 2018 2019 Miscellaneous Plan Actuarially Determined Contribution 159,393$ 116,663$ 424,915$ 391,538$ 383,835$ Contribution in Relation to the Actuarially Determined Contribution (159,393) (116,663) (424,915) (391,538)(383,835) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll 1,452,613$ 1,335,625$ 1,540,292$ 1,352,434$ 1,382,907$ Contributions as a Percentage of Covered Payroll 10.97%8.73% 27.59% 28.95%27.76% Note to Schedule: Valuation Date:June 30, 2016 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Amortization method Level percentage of payroll Assets valuation method Market value Discount rate Payroll growth 3.00% Inflation 2.75% Projected salary increases Varies by entry age and service Individual salary growth MISCELLANEOUS COST-SHARING PLAN AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Entry age normal (1) Historical information is required only for measurement for which GASB Statement No. 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only five years are shown. A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%. 7.15% (net of administrative expenses) 65 C.8.a Packet Pg. 172 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) CITY OF GRAND TERRACE SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 Total OPEB Liability Service cost 169,316$ 107,552$ Interest on the total OPEB liability 51,629 48,506 Actual and expected experience difference -- Changes in assumptions (45,427)62,620 Changes in benefit terms (259,790)- Benefit payments (45,629)(39,770) Net Change in Total OPEB Liability (129,901)178,908 Total OPEB liability - beginning 1,295,632 1,165,731 Total OPEB Liability - Ending 1,165,731$ 1,344,639$ Covered-Employee Payroll 866,196$ 1,575,073$ Total OPEB Liability as a Percentage of Covered-Employee Payroll 135%85% Notes to Schedule: None (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. Changes in assumptions:The discount rate was changed from 3.58 percent to 3.87 percent for the measurement period ended June 30, 2018. The discount rate was updated to 3.50% (Bond Buyer 20-Bond Index) based on municipal bond rate as of the measure date June 30, 2019. 66 C.8.a Packet Pg. 173 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 174 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 675((7,03529(0(17 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV &KDUJHVIRUVHUYLFHV 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV 7UDQVIHUVRXW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 6HH1RWHVWR5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ 68 C.8.a Packet Pg. 175 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( +286,1*$87+25,7< <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 8VHRIPRQH\DQGSURSHUW\ 0LVFHOODQHRXV *DLQRQVDOHRISURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ (FRQRPLFGHYHORSPHQW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 6HH1RWHVWR5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ 69 C.8.a Packet Pg. 176 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) THIS PAGE INTENTIONALLY LEFT BLANK 70 C.8.a Packet Pg. 177 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 178 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 179 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( &20%,1,1*%$/$1&(6+((7 1210$-25*29(510(17$/)81'6 -81( $VVHWV &DVKDQGLQYHVWPHQWV 5HFHLYDEOHV $FFRXQWV5HFHLYDEOH 'XHIURPRWKHUJRYHUQPHQWV 'XHIURPRWKHUIXQGV 7RWDO$VVHWV /LDELOLWLHV'HIHUUHG,QIORZVRI5HVRXUFHV DQG)XQG%DODQFHV /LDELOLWLHV $FFRXQWVSD\DEOH 5HIXQGDEOH'HSRVLWV 'XHWRRWKHUIXQGV 7RWDO/LDELOLWLHV 'HIHUUHG,QIORZVRI5HVRXUFHV 8QDYDLODEOHUHYHQXHV 7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV )XQG%DODQFHV 5HVWULFWHGIRU &RPPXQLW\GHYHORSPHQWSURMHFWV 3XEOLFVDIHW\ 3XEOLFZRUNV &KLOG&DUH 8QDVVLJQHG 7RWDO)XQG%DODQFHV 7RWDO/LDELOLWLHV'HIHUUHG,QIORZVRI 5HVRXUFHVDQG)XQG%DODQFHV &217,18(' 6SHFLDO5HYHQXH)XQGV )DFLOLWLHV 'HYHORSPHQW $LU4XDOLW\ ,PSURYHPHQW6WDWH*DV7D[7UDIILF6DIHW\ 73 C.8.a Packet Pg. 180 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 181 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 182 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 183 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 184 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 185 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) THIS PAGE INTENTIONALLY LEFT BLANK 79 C.8.a Packet Pg. 186 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 187 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 188 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 189 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 190 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 191 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( &20%,1,1*67$7(0(172)5(9(18(6 (;3(1',785(6$1'&+$1*(6,1)81'%$/$1&(6 1210$-25*29(510(17$/)81'6 <($5(1'('-81( 5HYHQXHV 7D[HV /LFHQVHVDQGSHUPLWV ,QWHUJRYHUQPHQWDO &KDUJHVIRUVHUYLFHV 8VHRIPRQH\DQGSURSHUW\ )LQHVDQGIRUIHLWXUHV 0LVFHOODQHRXV 7RWDO5HYHQXHV ([SHQGLWXUHV &XUUHQW *HQHUDOJRYHUQPHQW 3XEOLFVDIHW\ &XOWXUDODQGUHFUHDWLRQ 3XEOLFZRUNV &DSLWDORXWOD\ 7RWDO([SHQGLWXUHV ([FHVV'HILFLHQF\RI5HYHQXHV 2YHU8QGHU([SHQGLWXUHV 2WKHU)LQDQFLQJ6RXUFHV8VHV 7UDQVIHUVLQ 7UDQVIHUVRXW 3URFHHGVIURPVDOHRIFDSLWDODVVHW 7RWDO2WKHU)LQDQFLQJ6RXUFHV 8VHV 1HW&KDQJHLQ)XQG%DODQFHV )XQG%DODQFHV%HJLQQLQJRI<HDUDV SUHYLRXVO\UHSRUWHG 5HVWDWHPHQWV )XQG%DODQFHV%HJLQQLQJRI<HDUDVUHVWDWHG )XQG%DODQFHV(QGRI<HDU &217,18(' 3HUPDQHQW )XQGV &DSLWDO 3URMHFWV &DSLWDO3URMHFW 3DUNV &DSLWDO 3URMHFWV &RPPHUFH:D\ 3URMHFW &DSLWDO3URMHFWV)XQGV 'RJ3DUN (QGRZPHQW IXQG 85 C.8.a Packet Pg. 192 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 193 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &+,/'&$5(&(17(5 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 8VHRIPRQH\DQGSURSHUW\ 3URFHHGVIURPVDOHRIFDSLWDODVVHW $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ &XOWXUDODQGUHFUHDWLRQ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 87 C.8.a Packet Pg. 194 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 67250'5$,1,03529(0(17 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV &KDUJHVIRUVHUYLFHV 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ 3XEOLFZRUNV &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 88 C.8.a Packet Pg. 195 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 3$5.'(9(/230(17 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV &KDUJHVIRUVHUYLFHV 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ &XOWXUDODQGUHFUHDWLRQ 3XEOLFZRUNV 7UDQVIHUVRXW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 89 C.8.a Packet Pg. 196 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( $%&236)81' <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFVDIHW\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 90 C.8.a Packet Pg. 197 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( $,548$/,7<,03529(0(17 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV &DSLWDORXWOD\ 7UDQVIHUVRXW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 91 C.8.a Packet Pg. 198 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 67$7(*$67$; <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 8VHRIPRQH\DQGSURSHUW\ 7UDQVIHUVLQ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV 7UDQVIHUVRXW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 92 C.8.a Packet Pg. 199 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 75$)),&6$)(7< <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 8VHRIPRQH\DQGSURSHUW\ )LQHVDQGIRUIHLWXUHV $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 93 C.8.a Packet Pg. 200 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( )$&,/,7,(6'(9(/230(17 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV &KDUJHVIRUVHUYLFHV 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &XOWXUDODQGUHFUHDWLRQ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 94 C.8.a Packet Pg. 201 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 0($685(, <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 95 C.8.a Packet Pg. 202 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &'%* <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 96 C.8.a Packet Pg. 203 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 63(&,$/',675,&76/$1'6&$3( /,*+7,1* <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 7D[HV 8VHRIPRQH\DQGSURSHUW\ )LQHVDQGIRUIHLWXUHV $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 97 C.8.a Packet Pg. 204 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 635,1*02817$,15$1&+ <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV /LFHQVHVDQGSHUPLWV 8VHRIPRQH\DQGSURSHUW\ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &XOWXUDODQGUHFUHDWLRQ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 98 C.8.a Packet Pg. 205 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &$/5(&<&/(*5$17 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\DVUHVWDWHG 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &XOWXUDODQGUHFUHDWLRQ &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 99 C.8.a Packet Pg. 206 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 6(1,25%86352*5$0)81'<($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO &KDUJHVIRUVHUYLFHV 8VHRIPRQH\DQGSURSHUW\ 7UDQVIHUVLQ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &XOWXUDODQGUHFUHDWLRQ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 100 C.8.a Packet Pg. 207 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( 38%/,&('8&$7,21$/ *29(510(17$&&(66 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 8VHRIPRQH\DQGSURSHUW\ 0LVFHOODQHRXV $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 101 C.8.a Packet Pg. 208 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( $&7,9(75$163257$7,21352*5$0 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &XOWXUDODQGUHFUHDWLRQ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 102 C.8.a Packet Pg. 209 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( +,*+:$<6$)(7<,03529(0(17352*5$0 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ 3XEOLFZRUNV &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 103 C.8.a Packet Pg. 210 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &$3,7$/,03529(0(17675((76 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 8VHRIPRQH\DQGSURSHUW\ 7UDQVIHUVLQ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQV2XWIORZ 3XEOLFZRUNV &DSLWDORXWOD\ 7UDQVIHUVRXW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 104 C.8.a Packet Pg. 211 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( %$5721&2/721%5,'*( <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ &KDUJHVWR$SSURSULDWLRQ2XWIORZ 7UDQVIHUVRXW 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 105 C.8.a Packet Pg. 212 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &$3,7$/352-(&76 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 0LVFHOODQHRXV 7UDQVIHUVLQ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ 3XEOLFZRUNV 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 106 C.8.a Packet Pg. 213 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &$3,7$/352-(&73$5.6 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV 8VHRIPRQH\DQGSURSHUW\ 7UDQVIHUVLQ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 107 C.8.a Packet Pg. 214 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( %8'*(7$5<&203$5,6216&+('8/( &$3,7$/352-(&76&200(5&(:$<352-(&7 <($5(1'('-81( 9DULDQFHZLWK )LQDO%XGJHW %XGJHW$PRXQWV $FWXDO 3RVLWLYH 2ULJLQDO )LQDO $PRXQWV 1HJDWLYH %XGJHWDU\)XQG%DODQFH-XO\ 5HVRXUFHV,QIORZV ,QWHUJRYHUQPHQWDO 7UDQVIHUVLQ $PRXQWV$YDLODEOHIRU$SSURSULDWLRQV &KDUJHVWR$SSURSULDWLRQ2XWIORZ &DSLWDORXWOD\ 7RWDO&KDUJHVWR$SSURSULDWLRQV %XGJHWDU\)XQG%DODQFH-XQH 108 C.8.a Packet Pg. 215 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) &,7<2)*5$1'7(55$&( &20%,1,1*67$7(0(172)$66(76$1'/,$%,/,7,(6 $//$*(1&<)81'6 -81( 7RWDOV $VVHWV &DVKDQGLQYHVWPHQWV 'XHIURPRWKHUJRYHUQPHQWV 7RWDO$VVHWV /LDELOLWLHV $FFRXQWVSD\DEOH 'HSRVLWVSD\DEOH 7RWDO/LDELOLWLHV 5HIXQGDEOH 'HSRVLWV7UXVW )XQG (PSOR\HHV 'HIHUUHG&RPS 7UXVW)XQG 109 C.8.a Packet Pg. 216 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e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a Packet Pg. 217 At t a c h m e n t : E x h i b i t - A - A n n u a l F i n a n c i a l R e p o r t E n d i n g J u n e 3 0 , 2 0 1 9 ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) June 1, 2020 To the Honorable Mayor and Members of the City Council City of Grand Terrace, California We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace, California (the City) for the year ended June 30, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 30, 2019. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during fiscal year 2018-2019. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City of Grand Terrace’s financial statements were: Management’s estimates of its net pension liability and net other post-employment benefits liability based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net other postemployment benefits liability in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 C.8.b Packet Pg. 218 At t a c h m e n t : E x h i b i t - B - A u d i t C o m m u n i c a t i o n L e t t e r ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. These differences are described below. In addition, we detected misstatements as a result of audit procedures which were material and were subsequently corrected by management. The details of these misstatements are described in a separate letter dated June 1, 2020. Unadjusted Audit Differences Prior year 4th quarter sales tax true up recorded in the current fiscal year. 44,200$ Cumulative effect (before effect of prior year differences) 44,200 Effect of unadjusted audit difference - prior year - Cumulative effect (after effect of prior year differences) 44,200$ Current Year Over (Under) Revenues and Expenditures/Expenses and Changes in Fund Balance/Equity Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 1, 2020. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. C.8.b Packet Pg. 219 At t a c h m e n t : E x h i b i t - B - A u d i t C o m m u n i c a t i o n L e t t e r ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Other Matters We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the General Fund, Street Improvement Fund and the Housing Authority Fund, the schedule of proportionate share of the net pension liability and the schedule of plan contributions for the miscellaneous cost-sharing plan, and the schedule of changes in net OPEB liability and related ratios which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual nonmajor fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. New Accounting Standards The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2018-2019 audit: GASB Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance – The following pronouncements have been postponed as a temporary relieve to governments and other stakeholders in light of the COVID-19 pandemic and the new effective date are reflected in the following fiscal years. The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the following fiscal year audit and should be reviewed for proper implementation by management: Fiscal year 2019 -2020 GASB Statement No. 83, Certain Assets Retirement Obligations. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements. Fiscal year 2020-2021 GASB Statement No. 84, Fiduciary Activities. GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14 and 61. Fiscal year 2021-2022 GASB Statement No. 87, Leases – Postponed to fiscal years beginning after December 15, 2020. GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period – Postponed to reporting periods beginning after December 15, 2020. C.8.b Packet Pg. 220 At t a c h m e n t : E x h i b i t - B - A u d i t C o m m u n i c a t i o n L e t t e r ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Fiscal year 2022-2023 GASB Statement No. 91, Conduit Debt Obligations – Postponed to reporting periods beginning after December 15, 2021. Restriction on Use This information is intended solely for the use of City Council and management of the City of Grand Terrace and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Brea, California C.8.b Packet Pg. 221 At t a c h m e n t : E x h i b i t - B - A u d i t C o m m u n i c a t i o n L e t t e r ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) INDEPENDENT AUDITORS’ 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 To the Honorable Mayor and Members of the City Council City of Grand Terrace, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace, California, (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 June 1, 2020. 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. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, we identified certain deficiencies in internal control that we consider to be material weaknesses. 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. We consider the following deficiency to be a material weakness: Land Held for Resale During our test work of Land Held for Resale, we noted that the City had purchased a large parcel in the amount of $665,000 from the Housing Authority and recorded the purchase as land. Upon further inquiry, it was noted the parcel was being resold within the next fiscal year and should have been classified as Land Held for Resale in the General Fund. We recommend that City review its procedures for capitalizing assets to ensure that all assets are properly capitalized and classified correctly. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 C.8.c Packet Pg. 222 At t a c h m e n t : E x h i b i t - C - R e p o r t o n I n t e r n a l C o n t r o l ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Management Response: City staff will ensure that procedures for capitalizing fixed assets are reviewed and followed when capitalizing and classifying fixed assets. 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. City’s Response to Findings The City’s response to the findings identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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. Brea, California June 1, 2020 C.8.c Packet Pg. 223 At t a c h m e n t : E x h i b i t - C - R e p o r t o n I n t e r n a l C o n t r o l ( A n n u a l F i n a n c i a l R e p o r t f o r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 9 ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Approval of Annual Appropriations Limit for Fiscal Year 2020-21, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 3.73% as the Price Factor for the Fiscal Year 2020-21 Appropriations Limit Calculation; and (2) Approve the selection of the Change in County of San Bernardino Population of 0.52% as the Population Change Factor for the Fiscal Year 2020-2021 Appropriations Limit Calculation; and (3) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2020-21, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. Its basic provisions are as follows: • Each year, the State and local governments must adopt a resolution establishing an Appropriations Limit, also known as the “Gann Limit”. Fiscal Year 1984-85 appropriations serve as the base for this limit, with adjustments being made C.9 Packet Pg. 224 annually to reflect increases in population, the cost of living, and financial responsibility transfers. • Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations and other non-tax proceeds are not subject to the limit. Exemptions are also made for voter-approved debt, debt that existed prior to January 1, 1979, and for the cost of compliance with court or Federal government mandates. • All tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers within a two-year period. • The voters may approve an increase in the Appropriations Limit. For the increase to remain in effect, however, it must be re-approved by voters at four- year intervals. On June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution. The major changes, which became effective July 1, 1990, are as follows: • The change in the cost of living is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Previously, the change in the cost of living was defined as the lesser of the change in the U.S. Consumer Price Index or the change in California per capita personal income. • The change in population is defined as either a change in the City’s population or a change in the County’s population, whichever is greater. • “Qualified capital outlay projects” were added to the items exempted from the Appropriations Limit. Qualified capital outlay projects must have a useful life of ten or more years and a cost that equals or exceeds $100,000. • Tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers only if the limit is exceeded over a two-year period. The annual calculation of the Appropriations Limit must be reviewed as part of the City’s annual financial audit. DISCUSSION: As indicated above, Proposition 111 made several changes to the method used to calculate the Appropriations Limit. The change in the cost of living (or “price factor”) is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Following C.9 Packet Pg. 225 are the two options for the City’s FY 2020-21 Appropriations Limit calculation: 1) Change in California per capita personal income (provided by California Department of Finance): 3.73% 2) Change in Grand Terrace assessed valuation from 2019 to 2020 due to the addition of non-residential new construction: This information is not yet available from the County Assessor’s office. When the data is available, if it is greater than the change in California per capita personal income, the Appropriations Limit will be revised and resubmitted to the City Council for approval. Based on the above information, the change in California per capita personal income has been used as the price factor for the FY 2019-20 Appropriations Limit calculation. The “population factor” to be used in calculating the Appropriations Limit is defined by Proposition 111 as either a change in the City’s population or a change in the County’s population, whichever is greater. Per information provided by the California Department of Finance, following are the population changes from 2019 to 2020: 1) Change in City of Grand Terrace population: 0.52% 2) Change in San Bernardino County population: 0.51% Since Option 1 (change in the City of Grand Terrace population) is greater than the County of San Bernardino population change, it is recommended to be used as the population factor for the FY 2020-21 Appropriations Limit calculation. Exhibit A provides the calculation of the FY 2020-21 Appropriations Limit using the recommended price and population factors. Exhibit B identifies the revenues that are classified as tax proceeds and those that are classified as non-tax proceeds for Appropriations Limit purposes. Exhibit C is the Department of Finance letter providing the per capita personal income and population change information used in the Appropriations Limit calculation. The City’s Appropriations Limit for FY 2019-20 was $14,637,091. The recommended change factor, as allowed by Proposition 111 due to cost of living and population changes, is 1.0427. This results in a FY 2020-21 Appropriations Limit of $15,262,095. The FY 2020-21 Proposed Budget contains appropriations subject to the Appropriations Limit of $4,536,873 which is $10,725,222 below the City’s legal limit. FISCAL IMPACT: There is no fiscal impact associated with adoption of the FY 2020-21 Appropriations Limit, as the City is safely within its legal appropriations limit for FY 2020-21. ATTACHMENTS: • FY2020-21 Appropriations Limit Resolution (DOCX) C.9 Packet Pg. 226 • Exhibit A - FY 2020-21 Appropriations Limit calculation (PDF) • Exhibit B - Revenue Classification (PDF) • Exhibit C - Dept of Finance percapita Letter (PDF) APPROVALS: Cynthia A. Fortune Completed 06/12/2020 9:44 AM Finance Completed 06/12/2020 9:45 AM City Attorney Completed 06/16/2020 3:03 PM City Manager Completed 06/18/2020 3:19 PM City Council Pending 06/23/2020 6:00 PM C.9 Packet Pg. 227 Page 1 of 2 RESOLUTION NO. 2020-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2020-21, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION Recitals WHEREAS, Article XlllB of the California Constitution and Section 7910 of the California Government Code require that each year the City of Grand Terrace shall by resolution, establish an Appropriations Limit for the fiscal year; and WHEREAS, the City Council has adopted the Budget for Fiscal Year 2020-21 on June 23, 2020 and has prepared adjustments to said budget, a copy of which is on file in the Office of the City Clerk and available for public inspection, and WHEREAS, the said Budget and proposed amendments contain the estimates of the services, activities and projects comprising the budget, and contain expenditure requirements and the resources available to the City; and WHEREAS, the City’s Finance Department has prepared calculations and documentation required for and to be used in the determination of certain matters and for the establishment of an Appropriations Limit for the City for Fiscal Year 2020-21; and WHEREAS, in accordance with Section 7910 of the California Government Code, documentation used in the determination of the appropriations limit and other necessary determinations was made available to the public in accordance with the requirements set forth therein; and WHEREAS, the City Council has considered pertinent data such as price and population factors and made such determinations as may be required by law, and has adopted this Resolution at a regularly scheduled meeting of the City Council: and WHEREAS, the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2020- 21 is hereby established at $15,262,095 and the total annual appropriations subject to such limitation for Fiscal Year 2020-21 are determined to be $4,536,873. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. That $15,262,095 is hereby established as the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2020-21. 2. The City Council hereby adopts the findings and methods of calculation set forth in Exhibit A (Appropriations Limit Calculation) and Exhibit B (Proceeds of Tax Calculation), including the selection of the Change in Per Capita Personal Income of 3.73% as the Price Factor for the Fiscal Year 2020-21 Appropriations Limit Calculation and the selection of the C.9.a Packet Pg. 228 At t a c h m e n t : F Y 2 0 2 0 - 2 1 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n [ R e v i s i o n 5 ] ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) Page 2 of 2 Change in County of San Bernardino Population of 0.52% as the Population Change Factor for the Fiscal Year 2020-2021 Appropriations Limit Calculation. 3. The City of Grand Terrace reserves the right to revise the factors associated with the calculation of the limit established pursuant to Article XlllB of the California Constitution if such changes or revisions would result in a more advantageous Appropriations Limit in the future. 4. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 5. The City Clerk shall certify to the adoption of this Resolution. 6. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 23rd day of June, 2020. ________________________________ Darcy McNaboe Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney C.9.a Packet Pg. 229 At t a c h m e n t : F Y 2 0 2 0 - 2 1 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n [ R e v i s i o n 5 ] ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) APPROPRIATIONS SUBJECT TO THE LIMIT FY 2020-21 Total Revenue*7,472,507$ Less Non-Proceeds of Tax 2,935,634 A) Total Appropriations Subject to the Limit 4,536,873$ APPROPRIATIONS LIMIT B) FY 2019-20 Appropriations Limit 14,637,091 C) Change Factor**% Increase Factor Cost of Living Adjustment 3.73 1.0373 Population Adjustment 0.52 1.0052 Change Factor (1.0373 x 1.0052)1.0427 D) Increase (decrease) in Appropriations Limit 625,004$ E) FY 2020-21 Appropriations Limit (B x C)15,262,095$ REMAINING APPROPRIATIONS CAPACITY (E-A)10,725,222$ Remaining Capacity as Percent of the FY 2020-21 Appropriations Limit 70.27% *Revenues are based on FY 2020-21 Proposed Budget (all City funds excluding Successor Agency). ** State Department of Finance Percent of Change in California Per Capita Income Percent of Change in City of Grand Terrace Population EXHIBIT A CITY OF GRAND TERRACE APPROPRIATIONS (GANN) LIMIT CALCULATION FISCAL YEAR 2020-21 C.9.b Packet Pg. 230 At t a c h m e n t : E x h i b i t A - F Y 2 0 2 0 - 2 1 A p p r o p r i a t i o n s L i m i t c a l c u l a t i o n ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) CITY OF GRAND TERRACE APPROPRIATIONS (GANN) LIMIT PROCEEDS OF TAX CALCULATION FISCAL YEAR 2020-21 BUDGETED BUDGETED PROCEEDS NON-PROCEEDS TOTAL REVENUE SOURCE OF TAX OF TAX REVENUE TAXES Property Tax (1)3,688,234$ 3,688,234$ Sales Tax (2) 725,000 725,000 Business License Tax 77,373 77,373 FEES Franchise Fees 445,000$ 445,000 Building Fees 91,900 91,900 Planning Fees 137,600 137,600 Other Permits/Fees 414,147 414,147 Intergovernmental 418,260 418,260 Use of Money & Property 327,509 327,509 Gas Tax/Highway User Fees 560,000 560,000 Measure "I" Transportation 200,000 200,000 SLESF (AB 3229 COPS)150,000 150,000 CDBG 69,934 69,934 Other 76,500 76,500 OPERATING BUDGET SUBTOTAL 4,490,607$ 2,890,850$ 7,381,457$ % of Total 60.84%39.16%100.00% Interest Allocation (3)46,266 29,784 76,050 CAPITAL PROJECT FUNDING Gas Tax/Measure "I"/Transfers 15,000 15,000 State Grants - - Bond Proceeds - - CAPITAL PROJECT SUBTOTAL -$ 15,000$ 15,000$ TOTAL 4,536,873$ 2,935,634$ 7,472,507$ Revenues are based on FY 2020-21 Proposed Budget (all City funds excluding Successor Agency). Notes: (1) Includes Property Tax In-Lieu of Vehicle License Fees & RPTTF Residual Receipts (2) Includes Property Tax In-Lieu of Sales Tax (3) Based on percentage of Tax/Non-Tax Proceeds EXHIBIT B C.9.c Packet Pg. 231 At t a c h m e n t : E x h i b i t B - R e v e n u e C l a s s i f i c a t i o n ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) E.ot-lT 01>-,..,.. ",. ~ "1-« ,. Q. Z \01 0 o ", 'I-DEPARTMENT OF" ~INANC:E GAVIN NE\NSCM -GOVERNOR <:'..ql/.o .... ',.. r --S---"'-A-Te:--=-C -AP-'T-O-L-=.:-:R---O-O-M---:""l 1-4~5::-=-. -=5-A'-'CR..;..A-M--'e:N-T-O....;C::'A':-'::: • .....;9"'::5-=a-:l-:4--4-:9-:9-:a...;..'"'"w~w"-w.;.. • ....;.oO'-.-.c-A.;..:.;::.GO.:..c.v OF"F"ICE OF" THE DIRECTOR May 2020 Dear Fiscal Officer: Subject: Price Factor and Population Information Appropriations Limit California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2020, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2020-21 . Attachment A provides the change in California's per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2020-21 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://ieginfo.legislature.ca.gov/faces/codes.xhtmi. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller's Office. Finance will certify the higher estimate to the State Controller by June 1, 2020. Please Note: The prior year's city population estimates may be revised. The per capita personal income change is based on historical data. Given the stay-at-home orders due to COVID-19, growth in the coming years may be substantially lower than recent trends. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086. lsI Keely Martin Bosler KEELY MARTIN BOSLER Director Attachment C.9.d Packet Pg. 232 At t a c h m e n t : E x h i b i t C - D e p t o f F i n a n c e p e r c a p i t a L e t t e r ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) May 2020 Attachment A A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2020-21 appropriation limit is: Per Capita Personal Income Fiscal Year (FY) Percentage change over prior year 2020-21 3.73 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2020-21 appropriation limit. 2020-21: Per Capita Cost of Living Change = 3.73 percent Population Change = 0.22 percent Per Capita Cost of Living converted to a ratio: Population converted to a ratio: Calculation of factor for FY 2020-21 : 3.73 + 100 = 1 .0373 100 0.22 + 100 = 1.0022 100 1.0373 x 1.0022 = 1.0396 C.9.d Packet Pg. 233 At t a c h m e n t : E x h i b i t C - D e p t o f F i n a n c e p e r c a p i t a L e t t e r ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) Fiscal Year 2020-21 AHachment B Annual Percent Change In Population Minus Exclusions* January 1, 2019 to January 1, 2020 and Total Population, January 1, 2019 IQtgL County ~im:eot Cbgoge ~gl:2ulgtigo Mious ~x~lusigos ---~gl:2UlgtigO City 2019-2020 1-1-19 1-1-20 1-1-2020 San Bernardino Adelanto 0.73 34,857 35,113 35,663 Apple Valley 0.34 74,140 74,394 74,394 Barstow 0.13 23,790 23,822 24,268 Big Bear Lake 0.29 5,191 5,206 5,206 Chino 2.18 82,094 83,883 89,109 Chino Hills 0.12 82,310 82,409 82,409 Colton 0.48 53,862 54,118 54,118 Fontana 0.33 212,304 213,000 213,000 Grand Terrace 0.52 12,362 12,426 12,426 Hesperia 0.93 95,509 96,393 96,393 Highland 0.18 55,222 55,323 55,323 Loma Linda 0.53 24,329 24,459 24,535 Montclair 0.10 39,452 39,490 39,490 Needles -0.78 5,289 5,248 5,248 Ontario 1.32 180,494 182,871 182,871 Rancho Cucamonga 0.18 175,201 175,522 175,522 Redlands 0.36 70,700 70,952 70,952 Rialto 0.21 104,334 104,553 104,553 San Bernardino 0.13 216,104 216,395 217,946 Twentynine Palms 2.55 18,365 18,834 29,258 Upland 0.32 78,564 78,814 78,814 Victorville 0.86 121,109 122,155 126,432 Yucaipa 0.15 55,629 55,712 55,712 Yucca Valley 0.14 22,205 22,236 22,236 Unincorporated 0.32 295,855 296,797 304,659 County Total 0.51 2,139,271 2,150,125 2,180,537 "Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. C.9.d Packet Pg. 234 At t a c h m e n t : E x h i b i t C - D e p t o f F i n a n c e p e r c a p i t a L e t t e r ( A n n u a l A p p r o p r i a t i o n s L i m i t f o r F i s c a l Y e a r 2 0 2 0 - 2 1 ) AGENDA REPORT MEETING DATE: June 23, 2020 TITLE: Zoning Code Amendment 20-01 and Specific Plan 20-01 to Amend Title 18 of the Grand Terrace Municipal Code and Barton Road Specific Plan to Regulate Uses Proposing Hours of Operation Any Time Between 11:00 P.M. and 6:00 A.M., and a Related Environmental Determination Pursuant to CEQA Regulation Section 15061(B)(3) PRESENTED BY: Steven Weiss, Planning & Development Services Director RECOMMENDATION: 1) Conduct a public hearing, and 2) Direct The City Attorney To Read The Title Of The Ordinance, Waive Further Reading, And Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA FINDING THAT ZONING CODE AMENDMENT 20-01 AND BARTON ROAD SPECIFIC PLAN AMENDMENT 20-01 ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15061(B)(3) AND AMENDING CHAPTER 18.06 (DEFINITIONS), CHAPTER 18.33 (C2 GENERAL BUSINESS DISTRICT) SECTION 18.33.020 (PERMITTED USES) AND SECTION 18.33.030 (CONDITIONAL PERMITTED USES) OF TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE AND AMENDING BARTON ROAD SPECIFIC PLAN (TABLE I, LAND USE MATRIX) TO ESTABLISH REQUIREMENTS FOR BUSINESSES PROPOSING TO OPERATE AT ANY TIME BETWEEN 11:00 PM AND 6:00 AM. 2030 VISION STATEMENT: This staff report supports the City’s 2030 Vision Plan, Goal #3 to promote economic development by preparing for future development by updating the zoning and development codes. BACKGROUND: The City has received inquiries about future uses proposing to operate any time between 11:00 p.m. and 6:00 a.m. However; the City does not currently have a review process to regulate, condition, or prevent issues associated with businesses operating during hours between 11:00 p.m. and 6:00 a.m. Concern has been expressed that uses F.10 Packet Pg. 235 with such hours of operation might create operational challenges, such as property maintenance, lighting, and security. On October 22, 2019, the Council directed Staff to develop a review process to monitor and enforce issues that may arise from a business proposing to operate during the later hours. This process also gives the City the authority to oversee compliance with codified health and safety regulations such as but not limited to noise, light and glare, security, cleanliness, and assign conditions of approval unique to a specific business operation. On May 21, 2020, the Planning Commission conducted a public hearing and voted unanimously 5-0 without changes recommending City Council adoption of the attached Ordinance establishing a review process for new businesses and existing businesses proposing to expand hours of operation anytime between the hours of 11:00 p.m. and 6:00 a.m. PROPOSED ORDINANCE: This Ordinance amends the following sections of the Municipal Code and the Barton Road Specific Plan: • Amend Title 18 (Zoning) Chapter 18.33 (C2 General Business District) Section 18.33.020 (Permitted Uses) and Section 18.33.030 (Conditionally Permitted Uses) incorporating provisions for businesses proposing hours of operation which include any hours between 11:00 p.m. and 6:00 a.m. • Amend the Barton Road Specific Plan (BRSP) Table I, Land Use Matrix adding requirements for businesses proposing hours of operation which include any hours between 11:00 p.m. and 6:00 a.m. • Existing businesses originally approved to operate any time between the hours of 11:00 p.m. to 6:00 a.m. prior to the effective approval date of this Ordinance, shall be exempt from this review process. DISCUSSION: The Municipal Code Title 18 (Zoning) and the Barton Road Specific Plan identify permitted and conditionally permitted uses within the different zoning districts. Through the entitlement process, future uses are reviewed for compliance within the underlying zoning districts. The Municipal Code and the Barton Road Specific Plan do not have provisions that regulate businesses proposing hours of operation anytime between 11:00 p.m. and 6:00 a.m. F.10 Packet Pg. 236 The proposed Administrative Conditional Use Permit (ACUP) will be utilized as the application that new businesses will need to apply and receive approval by the Planning and Development Services Director. This review provides the City authority to monitor businesses’ activities in order to ensure the community’s health, safety, and welfare. This process requires applications to be routed to multiple agencies for their review (i.e. San Bernardino County Sheriff Department, San Bernardino County Fire Department, Building and Safety Division, and Public Works Division) allowing the agencies to provide comments and assign conditions of approval for the proposed activities, construction, and operations of the proposed use. This process also requires public notifications to adjacent property owners prior to approval. Through this process, the City will review uses proposing hours of operation which include any hours between 11:00 p.m. to 6:00 a.m. (e.g., Restaurants, Bars, Fast Food Restaurants, Entertainment uses, etc.) and include provisions and requirements to prevent adverse impacts to the quality of life of adjacent properties, such as noise, trash, loitering, and impose requirements such as overnight security, adequate lighting, and building maintenance. Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 propose to add a definition to Section 18.06.032, “After-Hours Operation,” as follows: "After-Hours Operation.” Use that operates at any time between 11:00 p.m. and 6:00 a.m. In addition, these amendments will establish the following requirements: • A proposed After-Hours Operation shall comply with the requirements of Chapter 18.84 – Administrative Conditional Use Permit (ACUP) subject to review and approval by the Planning and Development Services Director who may impose Conditions of Approval specific to the After-Hours Operation, including but not limited to parking, security, lighting, noise, and property maintenance. • A proposed After-Hours Operation use more than 2,000 square feet shall require compliance with the Conditional Use Permit (CUP) review process pursuant of Chapter 18.83 subject to review and approval by the Planning Commission. • For other uses proposing After-Hours Operations not identified in the Zoning Code or the Barton Road Specific Plan as being permitted to be an After-Hours Operation, a determination of similar use application shall be submitted to be reviewed by the Planning and Development Services Director. This determination is appealable to the Planning Commission and, appealable from the Planning Commission, to the City Council. F.10 Packet Pg. 237 • A proposed use with hours of operation which includes the hours from 11:00 p.m. to 6:00 a.m. that is identified by the Zoning Code as requiring a Conditional Use Permit (CUP) will be reviewed and conditioned accordingly through the CUP approval process, which includes Planning Commission review and approval. ENVIRONMENTAL REVIEW: The Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 are exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. This proposal will not have a significant effect on the environment because the amendments only change administrative procedures establishing requirements for businesses operation during the hours between 11:00 p.m. and 6:00 a.m. PUBLIC NOTICE: Public notice was provided in accordance with state law by publishing a legal advertisement in the Grand Terrace City News and posting the hearing notice in three public places. In addition, the Public Hearing Notice was posted in accordance with the City’s Ordinance No.327 Public Hearing Notification Requirements. To date, Staff has received no comments regarding the proposed amendments. FISCAL IMPACT: This item does not impact the General Fund. ATTACHMENTS: • ZCA 20-01, SPA 20-01_Ordinance (DOC) • ZCA 20-01, SPA 20-01_Exhibit A (DOCX) • ZCA 20-01, Exhibit B - Barton Road Specific Plan Amendments(DOCX) • barton_road_specific_plan (PDF) • Notice of Exemption (DOC) APPROVALS: Steven Weiss Completed 06/16/2020 6:50 PM City Attorney Completed 06/17/2020 9:59 AM Finance Completed 06/18/2020 3:35 PM City Manager Completed 06/18/2020 4:04 PM City Council Pending 06/23/2020 6:00 PM F.10 Packet Pg. 238 01247.0005/636135.2 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA FINDING THAT ZONING CODE AMENDMENT 20-01 AND BARTON ROAD SPECIFIC PLAN AMENDMENT 20-01 ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15061(B)(3) AND AMENDING CHAPTER 18.06 (DEFINITIONS), CHAPTER 18.33 (C2 GENERAL BUSINESS DISTRICT) SECTION 18.33.020 (PERMITTED USES) AND SECTION 18.33.030 (CONDITIONAL PERMITTED USES) OF TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE AND AMENDING BARTON ROAD SPECIFIC PLAN (TABLE I, LAND USE MATRIX) TO ESTABLISH REQUIREMENTS FOR BUSINESSES PROPOSING TO OPERATE AT ANY TIME BETWEEN 11:00 PM AND 6:00 AM. WHEREAS, the City of Grand Terrace (“City”) adopted a zoning code, which has been amended from time to time; and WHEREAS, pursuant to Sections 65800 and 65850 of the California Government Code, the City may adopt ordinances to regulate the use of buildings in compliance with the California Government Code; and WHEREAS, this Ordinance proposes to amend the Municipal Code, Title 18 (Zoning), Chapter 18.06 (Definitions) to include a definition for “After-Hours Operations” and Chapter 18- 33 (C2-General Business District) to establish requirements for uses proposing hours of operation at any time between 11:00 PM and 6:00 AM as set forth in Exhibit A; and WHEREAS, this Ordinance proposes to amend the Barton Road Specific Plan (BRSP), Table I, Land Use Matrix, to include requirements for uses proposing hours of operation at any time between 11:00 PM and 6:00 AM as set forth in Exhibit B; and WHEREAS, Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 are exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. The project will not have a significant effect on the environment because the amendments only change administration procedures establishing requirements for uses proposing hours of operation at any time between 11:00 PM and 6:00 AM as within the BRSP and Municipal Code; and WHEREAS, existing businesses permitted to operate any time between the hours of 11:00 p.m. to 6:00 a.m. prior to the effective approval date of this Ordinance, shall be exempt from the ACUP/CUP review process; and WHEREAS, on May 21, 2020 the Planning Commission of the City of Grand Terrace conducted a duly noticed public hearing at a regular meeting of the Planning Commission on F.10.a Packet Pg. 239 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ O r d i n a n c e [ R e v i s i o n 1 ] ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - 01247.0005/636135.2 Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 at the Grand Terrace City Hall Council Chambers located 22795 Barton Road and concluded the hearing by adopting a Resolution, voting unanimously 5-0, recommending City Council approval; and WHEREAS, on June 23, 2020, the City Council of the City of Grand Terrace conducted a duly noticed public hearing on Zoning Code Amendment 20-01 and Barton Road Specific Plan Amendment 20-01 at the Grand Terrace City Hall Council Chambers located 22795 Barton Road; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all the facts set forth in the above Recitals, are true and correct. SECTION 2. The City Council hereby finds that the Project is not subject to environmental review pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations because the revisions are regulatory in nature and will not in themselves create impacts to the environment. SECTION 3. Based on substantial evidence presented to the City Council during the public hearing, including public testimony, and written and oral staff reports, the City Council specifically finds as follows: 1. Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 will not be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working within the neighborhood of the proposed amendment or injurious to property or improvements in the neighborhood or within the City because these amendments establish an Administrative Conditional Use Permit review process for uses permitted by right within the Zoning Districts proposing to operate at any time between 11:00 PM and 6:00 AM. Uses proposing such hours of operations will be reviewed to determine the inclusion of conditions and requirements to prevent adverse impacts to the quality of life of adjacent properties, such as noise, trash, loitering, and impose requirements such as overnight security, adequate lighting, and building maintenance. 2. Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 are consistent with the General Plan and the Barton Road Specific Plan because an Administrative Conditional Use Permit process gives the City authority to issue and revoke a conditional use permit in order to ensure the community’s health, safety, and welfare by conditionally approving uses with necessary protection so objectionable or undesirable effects upon nearby uses are addressed, compatible with the property’s zoning. F.10.a Packet Pg. 240 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ O r d i n a n c e [ R e v i s i o n 1 ] ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - 01247.0005/636135.2 SECTION 4. Based upon the above findings and determinations, the City Council finds the Project exempt from CEQA pursuant to section 15061(b)(3). SECTION 5. Title 18 (Zoning) of the Grand Terrace Municipal Code and the Barton Road Specific Plan are hereby amended as contained in Exhibit A and Exhibit B respectively, attached hereto and incorporated herein by reference. SECTION 6. Inconsistencies. Any provision of the Grand Terrace Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 7. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. The City Council of the City of Grand Terrace declares that it would have adopted all the provisions of this ordinance that remain valid if any provisions of this ordinance are declared invalid. SECTION 8. Effective Date. This Ordinance shall become effective thirty (30) days from and after its adoption. SECTION 9. First read at a regular meeting of the City council held on the 23rd day of June 2020. SECTION 10. Certification. The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after its final passage. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the___ day of ____2020. __________________________ Darcy McNaboe, Mayor ATTEST: Debra L. Thomas, City Clerk F.10.a Packet Pg. 241 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ O r d i n a n c e [ R e v i s i o n 1 ] ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - 01247.0005/636135.2 APPROVED AS TO FORM: Adrian R. Guerra City Attorney F.10.a Packet Pg. 242 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ O r d i n a n c e [ R e v i s i o n 1 ] ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - 01247.0005/636118.2 EXHIBIT A TITLE 18- ZONING ZONING CODE AMENDMENT 20-01 Chapter 18-06 (Definition) of Title 18 (Zoning) of the Grand Terrace Municipal Code is amended by adding Section 18.06.032 as follows: 18.06.032 – After-Hours Operation. "After-Hours Operation" means any use that has hours of operation at any time between 11:00 PM and 6:00 AM. Section 18.33.020 (Permitted Uses) of Chapter 18.33 (C2 General Business District) of Title 18 (Zoning) of the Grand Terrace Municipal Code is amended as follows: 18.33.020 - Permitted uses. Permitted uses in the C2 district shall be as follows: 1. Antique shops; 2. Apparel stores; 3. Appliance stores and repair; 4. Art, music and photographic studios and supply stores; 5. Athletic and health clubs and weight-reducing clinics; 6. Automotive related services (includes motorcycles, boats, recreational vehicles, trailers and campers): parts and supplies; 7. Bakeries (retail only); 8. Barber and beauty shops; 9. Bicycle shops; 10. Book, gift and stationary stores (other than adult related material); 11. Camera shop and film processing services; 12. Candy and confectionery stores (retail only); 13. Carpet and floor covering stores; 14. China and glassware stores; 15. Cleaning and pressing establishments; 16. Computer and software stores; 17. Convenience stores; F.10.b Packet Pg. 243 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ E x h i b i t A ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - H o u r O p e r a t i o n 01247.0005/636118.2 a. After-Hours Operation as defined by Section 18.06.032. ª 18. Curtain and drapery shops; 19. Delicatessens and specialty food stores; 20. Drug stores and pharmacies; a. After-Hours Operation as defined by Section 18.06.032. ª 21. Florist shops; 22. Furniture stores; 23. Grocery stores and supermarkets; a. After-Hours Operation as defined by Section 18.06.032. ª 24. Hardware stores; 25. Hobby and craft shops; 26. Ice cream and yogurt shops; 27. Jewelry stores; 28. Laundry (self-service); 29. Leather goods and luggage stores; 30. Liquor stores; 31. Nurseries and garden supply stores; 32. Office supplies store; 33. Paint, glass and wallpaper stores; 34. Pet shops; 35. Printing, blueprinting and reproduction services; a. After-Hours Operation as defined by Section 18.06.032. ª 36. Record, tape and video stores (sales and rental); 37. Restaurants: a. With the incidental serving of beer and wine (without a cocktail lounge, bar, entertainment or dancing); b. Fast food (without a drive-thru); c. After-Hours Operation as defined by Section 18.06.032. ª 38. Shoe stores (sales and repair); 39. Sporting goods stores; 40. Tailor shops; 41. Television, radio, VCR, stereo and CD component stores (sales and repair); 42. Toy stores; 43. Variety department stores; F.10.b Packet Pg. 244 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ E x h i b i t A ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - H o u r O p e r a t i o n 01247.0005/636118.2 44. Watch and clock shops (sales and repair); 45. Yardage goods stores; 46. Other uses which are determined by the planning commission to be similar in nature to a use listed in this section; 47. Temporary uses which are determined by the community development director not to have significant long-term impact on the environment. (Uses such as parking lot sales, Christmas tree sales, seasonal sales, rummage sales, and others with review through the land use approval or administrative site and architectural approval process in accordance with Chapter 18.63, Site and Architectural Review.) Footnotes: a. A proposed After-Hours Operation use shall comply with the requirements of Chapter 18.84 – Administrative Conditional Use Permit subject to review and approval by the Planning and Development Services Director. The Planning and Development Services Director may impose Conditions of Approval specific to After-Hours Operations, including, but not limited to, those conditions relating to parking, security, lighting, noise, and property maintenance. A proposed After-Hours Operation use in excess of 2,000 square feet shall require compliance with a Conditional Use Permit pursuant of Chapter 18.83 – Conditional Use Permits subject to review and approval by the Planning Commission. The Planning and Development Services Director shall determine whether a use not specifically permitted to operate as an After-Hours Operation is a permitted use or conditionally permitted use in the C2 General Business District on the basis of similarity to uses specifically permitted to operate as an After-Hours Operation. Application for determination of such similar uses shall be made in writing to the Planning and Development Services Director in the form provided by the Planning and Development Services Director and shall include a detailed description of the proposed use and such other information as may be required by the Planning and Development Services Director to facilitate the determination. Such application shall also include payment for such application fees as may be adopted by Resolution of the City Council. The determination of the Planning and Development Services Director shall be appealable to the Planning Commission and the determination of the Planning Commission shall be appealable to the City Council. The determination by the City Council shall be final. Existing businesses permitted to operate any time between the hours of 11:00 p.m. and 6:00 a.m. prior to the effective approval date of this Ordinance, shall be exempt from the Administrative Conditional Use Permit process. F.10.b Packet Pg. 245 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ E x h i b i t A ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - H o u r O p e r a t i o n 01247.0005/636118.2 Section 18.33.030 (Conditional Permitted Uses) of Chapter 18.33 (C2 General Business District) of Title 18 (Zoning) of the Grand Terrace Municipal Code is amended as follows: 18.33.030 - Conditionally permitted uses. Uses permitted in the C2 district with a conditional use permit shall be as follows: A. Automotive related services (includes motorcycles, boats, recreational vehicles, trailers and campers): 1. Rentals, 2. Sales (new and used vehicles), 3. Service stations; B. Day care centers; C. Motels and hotels; 1. After-Hours Operation as defined by Section 18.06.032. ª D. Restaurants; 1. With entertainment and/or serving of alcoholic beverages (other than beer and wine), 2. Fast food (with a drive-thru); 3. After-Hours Operation as defined by Section 18.06.032. ª E. Secondhand sales; F. Veterinary clinic (completely contained in a building); 1. After-Hours Operation as defined by Section 18.06.032. ª G. Other uses which are determined by the planning commission to be similar in nature to a use listed in this section; H. Outdoor displays/uses shall take place in front of business on site, which have been approved with a conditional use permit. Under special circumstances outdoor uses/displays are allowed without conditional use permits during two citywide events (the Grand Terrace Days in June and Tour De Terrace Bike Event in October), and in connection with business grand openings. Temporary special event permits will be required for display of associated balloons, banners and special event signs. Footnote: a A Conditional Use Permit for a use proposing an After-Hours Operation shall be required pursuant to Chapter 18.83 – Conditional Use Permits. The Planning Commission may impose Conditions of Approval specific to a use proposing an After- F.10.b Packet Pg. 246 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ E x h i b i t A ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - H o u r O p e r a t i o n 01247.0005/636118.2 Hours Operation, but not limited to, conditions relating to parking, security, lighting, noise, and property maintenance. Existing businesses permitted to operate any time between the hours of 11:00 p.m. to 6:00 a.m. prior to the effective approval date of this Ordinance, shall be exempt from the Conditional Use Permit review process. F.10.b Packet Pg. 247 At t a c h m e n t : Z C A 2 0 - 0 1 , S P A 2 0 - 0 1 _ E x h i b i t A ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - H o u r O p e r a t i o n 01247.0005/636129.1 EXHIBIT B BARTON ROAD SPECIFIC PLAN (BRSP) SPECIFIC PLAN AMENDMENT 20-01 Table I, Land Use Matrix of the Barton Road Specific Plan is amended as follows: TABLE I, LAND USE MATRIX General Commercial Village Commercial Office/ Professional 1. Retail Commercial Uses PA 1 PA 2 PA 3 Ambulance Services C(5) Antique Shops P P Apparel Stores P P Appliance Stores and Repair P P Art, Music, and Photographic Studios and Supply Stores P P P Auditoriums C Athletic and Health Gyms and Weight Reducing Clinics P C C Auto Service Station P C (4) Auto Related (including motorcycles, boats, trailers, campers): a) Sales (with ancillary repair facilities in a totally enclosed area) b) Rentals c) Parts and Supplies P P P P F.10.c Packet Pg. 248 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - 01247.0005/636129.1 d) Repair Bakeries (retail only) P P Barber and Beauty Shops P P P Bicycle Shops P P P Blueprint and Photocopy Services P P P Boats Sales C Book & Stationary Stores (other than adult related material) P P P Bowling Alleys C Camera Shop (including processing) P P P Candy and Confectioneries C P P Car Washes C Catering Services P C China and Glassware Stores P P Cleaning & Pressing Establishments C C C Convenience Stores a) After-Hours Operation as defined by Grand Terrace Municipal Code Section 18.06.032. (5) P C(5) P C(5) C C(5) Costume Design Studios P Curtain and Drapery Shops P P Day Care Centers C C C Delicatessens / Specialty Food Stores P P P Department Stores P P Drug Stores and Pharmacies a) After-Hours Operation as defined by Grand Terrace Municipal Code Section 18.06.032. (5) P C(5) P C(5) P C(5) F.10.c Packet Pg. 249 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - 01247.0005/636129.1 Equipment/Party Rental P Farmers Markets P P Feed and Grain Sales P Floor Covering Shops P Florist Shops P P P Food Markets a) After-Hours Operation as defined by Grand Terrace Municipal Code Section 18.06.032. (5) P C(5) P C(5) Furniture Stores P P Garden Supply Stores P C Gift Shops P P P Hardware Stores P C Health Centers P C C Hobby and Craft Shops P P P H Household Goods P P Hotels/Motels C(5) Ice Creams and Yogurt Shops P P P Ice Sales P Jewelry Stores P P P Laundry (Self Service) P P P Leather Goods and Luggage Stores P P Liquor Stores P (3) P Locksmiths Shops P P P Mail Order Businesses P P Message Centers and P.O. Boxes P P P Mobile Home Sales C Music, Dance, and Exercise Studios C(5) C(5) C(5) Notions or Novelty stores P P Nurseries & Garden Supply Stores within enclosed area P C F.10.c Packet Pg. 250 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - 01247.0005/636129.1 Office, Bus. Machine Sale & Repair P P P Pawn Shops C Computer & Software Stores P P P Paint, Glass, and Wallpaper Stores P Pet Shops P P P Recycling Collection Services C C Record, Tape, & video Stores (including rental) P P P Restaurants (sit down): a) With entertainment and/or serving of alcoholic beverages b) Incidental serving of beer and wine (without a cocktail lounge, bar, entertainment, or dancing) c) Fast Food: without drive- thru d) Fast Food: with drive-thru e) After-Hours Operation as defined by Grand Terrace Municipal Code Section 18.06.032. (5) P P P P C(5) P C C C C(5) C C C C C(5) Schools, Business & professional C C C Shoe Stores, Sale and Repair P P P Smoke Shops P P Sporting Goods Stores P P Stained Glass Assembly P Supermarkets a) After-Hours Operation as defined by Grand Terrace Municipal Code Section 18.06.032. (5) P C(5) P C(5) Tailor Shops P P P Television, Radio, VCR, Stereo, and CD Component Sales P P Tire Stores P Toy Stores P P Travel Agencies P P P Variety Department Stores, Junior Department Stores P P F.10.c Packet Pg. 251 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - 01247.0005/636129.1 Veterinary (domestic, non- boarding) C(5) Watch and Clock Repair Stores P P P Yardage Goods Stores P P F.10.c Packet Pg. 252 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - 01247.0005/636129.1 TABLE I, LAND USE MATRIX (cont.) General Commercial Village Commercial Office/ Professional 2. Entertainment and Cultural Uses PA 1 PA 2 PA 3 Cultural / Artist Exhibits: a. Indoor gallery and art sales b. Outdoor art exhibits P C P C Movie theaters P 3. Office and Administrative Uses Banks, Finance Services and Institutions P P P Business and Office Services P P P Interior Decorating Firms P P P (2) Medical / Dental Offices and Related Health Clinics P P P Medical Laboratories P P P Optician and Optometric Shops P P P Realtors and Real Estate Offices P P P Travel Agencies P P P 4. Public and Quasi Public Uses Government Offices and Facilities C C C Public Schools P Churches C P Private Schools Associated with a Church and located on same site C P F.10.c Packet Pg. 253 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - 01247.0005/636129.1 Notes: (1) Outdoor displays/uses shall take place in front of business on site, which have been approved with a conditional use permit. Under special circumstances, outdoor uses/ displays are allowed without conditional use permits (refer to Development Regulations). (2) Permitted with no showroom facilities. (3) Conditional permit required for off sale of alcoholic beverages within 500 feet of a school. (4) An auto service station featuring the sales of gasoline with a convenience food market is permitted with the approval of a Conditional Use Permit by the Planning Commission at the southwest corner of Barton Road and Mount Vernon Avenue only. (5) A proposed After-Hours Operation use shall comply with the requirements of Chapter 18.84 – Administrative Conditional Use Permit subject to review and approval by the Planning and Development Services Director. Conditions of Approval specific to After-Hours Operations may be assigned, including but not limited to parking, security, lighting, noise, and property maintenance. A proposed After-Hours Operation use in excess of 2,000 square feet shall require compliance with a Conditional Use Permit pursuant of Chapter 18.83 – Conditional Use Permits subject to review and approval by the Planning Commission. For other uses proposing After-Hours Operations that are not identified on Table I Land use Matrix, the Planning and Development Services Director shall determine whether such use is a permitted use or conditionally permitted use on the basis of similarity to uses specifically permitted to operate as After-Hours Operations. Application for determination of such similar uses shall be made in writing to the Planning and Development Services Director in the form provided by the Planning and Development Services Director and shall include a detailed description of the proposed use and such other information as may be required by the Planning and Development Services Director to facilitate the determination. Such application shall also include payment for such application fees as may be adopted by Resolution of the City Council. The determination of the Planning and Development Services Director shall be appealable to the Planning Commission and the determination of the Planning Commission shall be appealable to the City Council. The determination by the City Council shall be final. (6) Existing businesses permitted to operate any time between the hours of 11:00 p.m. to 6:00 a.m. prior to the effective approval date of this Ordinance, shall be exempt from the Administrative Conditional Use Permit/Conditional Use Permit process. F.10.c Packet Pg. 254 At t a c h m e n t : Z C A 2 0 - 0 1 , E x h i b i t B - B a r t o n R o a d S p e c i f i c P l a n A m e n d m e n t s ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - BARTON RD. BART O N R D . PALM AVE. MT . V E R N O N VIV I E N D A A V E . MI C H I G A N A V E . PR E S T O N A V E . Specific Plan Area Map Barton Road Specific Plan City of Grand Terrace Community Development Department, August 9, 2011. This map is for reference only. For detailed information, please consult with the Community Development Department. Planning Area: Specific Plan Area Exhibit 1 3 N F.10.d Packet Pg. 255 At t a c h m e n t : b a r t o n _ r o a d _ s p e c i f i c _ p l a n ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - C:\users\dthomas\appdata\roaming\iqm2\minutetraq\grandterracecityca@grandterracecityca.iqm2.com\work\attachments\5992.doc 22795 Barton Road, Grand Terrace, California, 92313-5295 909/824-6621 Fax 909/783-2600 CITY OF GRAND TERRACE NOTICE OF EXEMPTION TO: Clerk of the Board of Supervisors FROM: Planning and Development County of San Bernardino Services Department 385 N. Arrowhead Avenue, 2nd Floor City of Grand Terrace San Bernardino, CA 92415-0130 22795 Barton Road Grand Terrace, CA 92313 Project Title: Zoning Code Amendment 20-01 and Specific Plan Amendment 20-01 Project Location – Specific: City Wide Description of Project: amendment to the Grand Terrace Municipal Code by Amending Title 18 (Zoning) Chapter 18.33 (C2 General Business District) Section 18.33.020 (Permitted Uses) and Section 18.33.030 (Conditional Permitted Uses) and amending the Barton Road Specific Plan, Table I, Land Use Matrix Name of Public Agency Approving Project: Grand Terrace City Council Name of Person or Agency Carrying out Project: City of Grand Terrace Exempt Status: California Code of Regulations, Title 14, Section 15061(b)(3) Reasons Why Project is Exempt: Zoning Code Amendment 19-01 is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3), in that the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. The proposed amendment will not have any effects on the environment because the proposed amendment only changes administration procedures by expanding the minimum public hearing notification requirements. Lead Agency or Contact Person: Area Code/Telephone (909) 824-6621 ______________________________ _________________ Steven A. Weiss, AICP Date Planning and Development Services Director F.10.e Packet Pg. 256 At t a c h m e n t : N o t i c e o f E x e m p t i o n ( Z o n i n g C o d e A m e n d m e n t 2 0 - 0 1 a n d S p e c i f i c P l a n 2 0 - 0 1 - R e g u l a t i n g T w e n t y - F o u r - H o u r O p e r a t i o n U s e s l ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Approval of Priorities Project List for Fiscal Year 2020-2021 PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Approve Priority Project List for Fiscal Year 2020-2021 per May 28, 2020 City Council Workshop 2030 VISION STATEMENT: This staff report supports the City Council’s Mission: to preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. BACKGROUND: On May 28, 2020, the City Council conducted its annual Priorities Workshop to provide staff direction on projects the Council felt were very important for the quality of life and economic advancement of the Grand Terrace community. The City Council reviewed the 2019-20 Priority Projects list and adjusted it based on significance and enhancements to the fiscal or quality of life of the community. DISCUSSION: The City Council reviewed the 2019-20 Priority Projects list and reprioritized them for the 2020-2021 Fiscal Year. The Council ranked the Priorities within three levels (Top, High and Priority). The foundation for the adjustments were based on: • Removal (Project completed or no longer relevant) • Shifting of priority to another level • Additions from vetted Future Council Agenda Items List • Additions from Report Backlog Key factors in determining the placement of a Priority Project should always include: • Estimated timeline for completion • Anticipated resource allocation • Funding and community impact The Council’s Priority Projects are not day-to-day operating functions. G.11 Packet Pg. 257 The Workshop allowed Council to confirm and reset its priorities for the new fiscal year (Attachment I). Staff is confident that the Top Priority Projects will be accomplished in a timely fashion and lower level Priority Projects that are on the priorities list may be accelerated if private development or grant funding is awarded this year. The 2020-21 Priorities Project list will be the only priority list staff will use for 2020- 21. Additions to the list will be added via the Council Future Agenda Item process (Attachment II). FISCAL IMPACT: There is no fiscal impact associated with the scheduling of the Priorities Work Program Workshop. ATTACHMENTS: • Attachment I - Priorities Project List (PDF) • Attachment II - Future Agenda Item Process (PDF) APPROVALS: G. Harold Duffey Completed 06/18/2020 10:14 AM City Attorney Completed 06/18/2020 11:20 AM Finance Completed 06/18/2020 3:30 PM City Manager Completed 06/18/2020 4:03 PM City Council Pending 06/23/2020 6:00 PM G.11 Packet Pg. 258 City of Grand Terrace Inter-departmental Memorandum City Manager’s Office ____________________________________________________________________________ DATE: June 23, 2020 TO: Mayor and City Council FROM: G. Harold Duffey, City Manager Cynthia Fortune, Assistant City Manager SUBJECT: PRIORITY PROJECTS UPDATE FOR 2020-2021 AS APPROVED BY CITY COUNCIL AT ITS SPECIAL MEETING WORKSHOP DATED MAY 28, 2020 ____________________________________________________________________________ The City Manager’s Office has multiple business lines and while our resources are limited, we continue to allocate our resources to achieve maximum returns in the following areas: • Economic Development • Efficient Services to Citizens • Code Enforcement to Maintain the Community’s Quality of Life • Sustainability of the Organization While the City Manager will be responsible to ensure all departments adhere to priorities as supported by the City Council, the City Manager’s Office will also ensure the alignment of priorities based on its various business lines. The City Manager’s priorities will be based on alignment with the City Manager’s 2030 Vision Implementation Plan Phase II and the annual budget approved by City Council. The four categories of ranking used to prioritize the projects are: 1. Economic Development (40%) 2. Funding and Resources (25%) 3. Approved Council’s Future Agenda Item Requests (20%) 4. Quality of Life (15%). Priority projects are categorized as “A” Top Priority, “B” High Priority and “C” Priority. G.11.a Packet Pg. 259 At t a c h m e n t : A t t a c h m e n t I - P r i o r i t i e s P r o j e c t L i s t ( P r i o r i t i e s W o r k s h o p 2 0 2 0 - 2 1 ) Memo to Mayor and City Council Page 2 of 5 City Manager Office Priority Projects for 2020-2021 Economic Development CM – Committees & Commissions “A” Top Priority “B” High Priority “C” Priority Youth Appointment to Parks Commission Return to City Council with Options to Delegate Special Event Support Establish Youth Council or Youth Council Week CM – Human Resources “A” Top Priority “B” High Priority “C” Priority Employee Appreciation Program Council & City Staff Social Events Review of Health and Compensation “A” Top Priority “B” High Priority “C” Priority Development of 4.78 Acres on Barton Rd. Stater Bros. Expansion Development on City Center Dr. Gateway Specific Plan Storm Drainage Michigan Cage Park Taco Bell Rails to Trails Grant to Access Santa Ana River Surgical Center Walgreens Center Expansion Mr. TV Video Kaz Ramen Coffee Hollywood Video Conversion Edwin Fuels Fire Station Agreement TOT Tax Implementation Adult Daycare to Advance Accessibility (Former Childcare Site) Pit Stop Development La Crosse Development RDA Lot 0.80 Acre Development Cannabis Related Activities and Licensing in the City G.11.a Packet Pg. 260 At t a c h m e n t : A t t a c h m e n t I - P r i o r i t i e s P r o j e c t L i s t ( P r i o r i t i e s W o r k s h o p 2 0 2 0 - 2 1 ) Memo to Mayor and City Council Page 3 of 5 City Attorney Priority Project 2020-2021 “A” Top Priority “B” High Priority “C” Priority Code of Conduct – Legislative Body Handbook Finance & Senior Center Development 2020-2021 “A” Top Priority “B” High Priority “C” Priority Review of Business License Fee Finance Department Staff Re-Organization Housing Agency Programs Expand Outreach for Senior Transportation Services. (Utility & Water Bill Inserts) City Clerk’s Office Priority Projects 2020-2021 “A” Top Priority “B” High Priority “C” Priority FPPC Compliance Scanning Increase Content of Intranet - Ongoing Records Destruction – Milestones and Research Grants Research Use of Facebook Live and Twitter City Clerk’s Department Operations Manage City Neighborhood Recognition Programs Lighting in City Council Chamber Manage Annual Acknowledgment Program City Council Chamber Reception Area Upgrade Public Works Priority Projects 2020-2021 “A” Top Priority “B” High Priority “C” Priority Fitness Park Canopy Park Enhancements Commerce Way Expansion Small Cell Site Infrastructure Plan Utility Pole Undergrounding Master Plan Mt. Vernon Slope Stabilization (New Grant Application) Year 3 CIP Fee Study Development Plans Fire Station Roof Repair Highway Safety Improvement Program Cycle 9 Guardrail Parking City Wide Strategy G.11.a Packet Pg. 261 At t a c h m e n t : A t t a c h m e n t I - P r i o r i t i e s P r o j e c t L i s t ( P r i o r i t i e s W o r k s h o p 2 0 2 0 - 2 1 ) Memo to Mayor and City Council Page 4 of 5 West Barton Bridge Replacement Road Support for Community Events Storm Drain Master Plan Public Works Maintenance Priority Projects 2020-2021 “A” Top Priority “B” High Priority “C” Priority Traffic Signal/Street Light Storm Drain/Channel Street, Sidewalk, Curb, Parkway City Facilities Parks City Neighborhood Lighting Plan Street Sign Replacement Program Planning & Development Services Priority Projects 2020-2021 “A” Top Priority “B” High Priority “C” Priority 4.78 Acres – PSA, Entitlements Zoning Around Schools Sign Code Amend Master Plan Grand Terrace Road – Aegis Edwin Fuels Gateway SP Anita – Grocery Outlet Sign Taco Bell Mr. TV Video Parking Program Grand T-1 LLC Project Blue Mountain Trail Grant Farming Project – 40 Acre Greenbelt Surgical Center Housing Authority Report Barton Road Streetscape Michigan Street – Complete Street Safety Element Update Housing Element Update G.11.a Packet Pg. 262 At t a c h m e n t : A t t a c h m e n t I - P r i o r i t i e s P r o j e c t L i s t ( P r i o r i t i e s W o r k s h o p 2 0 2 0 - 2 1 ) Memo to Mayor and City Council Page 5 of 5 Public Safety Priority Projects 2020-2021 “A” Top Priority “B” High Priority “C” Priority Protocols for Special Events & Seasonal Law Enforcement Needs C.O.P. Recruitment Public Education & Citizens Arrests Neighborhood Watch Program Expansion Stop the Bleed G.11.a Packet Pg. 263 At t a c h m e n t : A t t a c h m e n t I - P r i o r i t i e s P r o j e c t L i s t ( P r i o r i t i e s W o r k s h o p 2 0 2 0 - 2 1 ) Process for Council Members to Request Items be Placed on Future Agenda’s (1) Request Future Agenda Item Contacting City Manager or Announcing Request at Council Meeting to add item to Section H of Future Meeting (2) Requested Item Added to Section H Topic introduced and voted on By Council to Add to New Business for discussion Approved Yes or No (3) New Business Item Scheduled Under New Business for Council Discussion and Direction to Staff Direction Provided (4) New Business Item Returns Under New Business for Council Action No Further Action No Further Action G.11.b Packet Pg. 264 At t a c h m e n t : A t t a c h m e n t I I - F u t u r e A g e n d a I t e m P r o c e s s ( P r i o r i t i e s W o r k s h o p 2 0 2 0 - 2 1 ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Public Workshop to Introduce Requirements for Vehicle Miles Traveled Thresholds and Local Guidelines for Implementing the California Environmental Quality Act PRESENTED BY: Steven Weiss, Planning & Development Services Director RECOMMENDATION: Conduct a Public Workshop to Introduce Requirements for Vehicle Miles Traveled Thresholds and Local Guidelines for Implementing the California Environmental Quality Act 2030 VISION GOAL STATEMENT: This staff report supports Goal #4 “Develop and Implement Successful Partnerships, Work Collaboratively with Private and Public Sector Agencies to Facilitate the Delivery of Services benefitting Our Community, Work with Local, Regional and State Agencies to Secure Funding for Programs and Projects” BACKGROUND: The California Environmental Quality Act (CEQA) is California’s most comprehensive environmental law. Generally, it requires public agencies to evaluate the environmental effects of a project before action is taken to approve a project. CEQA also aims to prevent significant environmental effects from occurring as a result of agency actions by requiring agencies to avoid or reduce, when feasible, the significant environmental impacts of their decisions. On December 28, 2018, the Office of Administrative Law approved a comprehensive update to the state CEQA Guidelines. This update included implementation metrics for Vehicle Miles Traveled (VMT). Staff is proposing that the City Council adopt the VMT thresholds at a future meeting and include them as part of the Local CEQA Guidelines, which are currently under development. Currently, public agencies use Level of Service(LOS) as the metric for transportation analysis. LOS categorizes traffic flow and assigns quality levels of traffic based on performance measure like vehicle speed, density, congestion, etc. VMT, on the other hand, is the new metric for transportation analysis which focuses on the overall miles traveled by vehicles within a region. This approach has an added inherent emphasis on reducing greenhouse gas emissions (GHG). All cities in the State of California are required to adopt new VMT thresholds through a public hearing process no later than July 1, 2020. Therefore, Fehr & Peers, an expert firm in VMT analysis, assisted in review and development of appropriate VMT H.12 Packet Pg. 265 thresholds for Grand Terrace to be fully compliant with CEQA law. City staff participated in a collaborative study led by SBCTA which evaluated the tools, thresholds, and mitigation options appropriate for the San Bernardino County region. Staff attended workshops on October 23, 2020, February 3, 2020, and March 30, 2020 on VMT. VMT thresholds for Grand Terrace are being incorporated within the draft Local CEQA Guidelines, which are currently being developed with City Staff and Fehr & Peers. As a result, automobile delay, as measured by LOS, generally no longer constitutes a significant environmental effect under CEQA. Adopting VMT thresholds, however, does not preclude the City from using LOS analysis to comply with Congestion Management Plan requirements or to conduct project specific transportation analysis. Analysis Local CEQA Guidelines CEQA requires public agencies to adopt specific objectives, criteria and procedures for evaluating public and private projects that are undertaken or approved by such agencies. These Guidelines reflect the recent changes in the State CEQA Guidelines, relevant court opinions and implementation of vehicles miles traveled as the metric for transportation impacts. The Local Guidelines provide step- by-step procedures for evaluating projects prior to approval including: General Provisions & Definitions Time Limits Initial Study Exemptions Negative Declarations/ Mitigated Negative Declarations Environmental Impact Reports Forms The Local CEQA Guidelines will become effective upon adoption. New projects or projects that have not circulated CEQA documents for public review before the effective date must comply with the City' s new CEQA Guidelines. City of Grand Terrace Threshold Selection The goals of this workshop are to introduce the Council to SB 743, VMT, and the steps Staff have taken towards local implementation of the VMT threshold of significance. Staff have made a preliminary determination of the following threshold for City of Grand Terrace: A project would result in a significant project-generated VMT impact if either of the following conditions are satisfied: 1. The baseline project generated VMT per service population exceeds the existing County of San Bernardino average VMT per service population, or H.12 Packet Pg. 266 2. The cumulative project generated VMT per service population exceeds the existing County of San Bernardino average VMT per service population Notes: “Existing” or “Baseline” refer to the year the analysis is being completed. If a study begins in 2020, the existing or baseline condition represents travel in the year 2020. “Service population” refers to all people within either the City or County who either live or work there. Service population is the sum of all residents and employees. Threshold” refers to the acceptable VMT for CEQA analysis. Projects that generate VMT above the adopted threshold will result in significant transportation impacts. Projects that generate VMT at or below the adopted threshold will result in less than significant transportation impacts. This threshold is consistent with how all other resource areas are currently evaluated under CEQA. The intent of SB 743 is to promote infill development and reduce GHGs - promoting development in VMT-efficient areas (i.e. Cities that have VMT per service population below the County average). According to data produced by the latest version of the San Bernardino Transportation Analysis Model, the City of Grand Terrace has an average existing VMT per service population below the San Bernardino County average existing VMT per service population. Therefore, comparing back to the county average would encourage development in this VMT- efficient location and would further the legislative intent of SB 743. City staff have determined that this most closely aligns with the local goals, vision, and values of the City of Grand Terrace. FISCAL IMPACT: There is no fiscal impact associated with conducting this workshop. APPROVALS: Steven Weiss Completed 06/16/2020 6:57 PM City Attorney Completed 06/16/2020 7:46 PM Finance Completed 06/18/2020 3:31 PM City Manager Completed 06/18/2020 4:05 PM H.12 Packet Pg. 267 City Council Pending 06/23/2020 6:00 PM H.12 Packet Pg. 268 AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Re-Appoint Planning Commissioners or Schedule Interviews with All Applicants PRESENTED BY: Debra Thomas, City Clerk RECOMMENDATION: Staff recommends that the City Council: Select Option 1: 1. Re-appoint the existing Planning Commissioners Ceseña and Alaniz to their appointed positions, OR Select Option 2: 2. Staff will schedule interviews with all candidates at the Regular Meeting of the City Council on July 14, 2020. 2030 VISION STATEMENT This action supports Our Mission: To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. BACKGROUND: The Planning Commission is a five-member Board appointed by the City Council who serve four-year terms at the pleasure of the City Council (Municipal Code Chapter 2.16). The terms alternate so that every two years at least two appointments are set to expire. At the end of the fiscal year, Commissioner Ceseña’s and Commissioner Alaniz’s terms are set to expire. Commission members are eligible to seek reappointment to the Planning Commission. Commissioners Ceseña and Alaniz have submitted their applications for re-appointment. The Table below depicts the composition and terms of the Commission. Name Appointed Re-Appointed Term Ends Chairman Edward Giroux 06/10/2014 07/10/2018 06/30/2022 Vice-Chair Jeremy Briggs 02/21/2019 -- 06/30/2022 Commissioner Tara Ceseña 06/10/2014 06/02/2016 06/30/2020 Commissioner Jeffrey McConnell 07/19/2018 -- 06/30/2022 H.13 Packet Pg. 269 Commissioner David Alaniz 02/25/2020 -- 06/30/2020 DISCUSSION: The City Clerk advertised the two expiring terms on the Planning Commission in the local adjudicated newspaper, on the City’s website, and posted a hard copy notice in the City’s reader boards. The application period opened on May 15, 2020 and concluded on June 15, 2020 at 5:00 p.m. The City received a total of five (5) applications, two of which are the existing members applications for re-appointment. Staff recommends that the City Council: 1. Re-appoint existing Planning Commissioners Ceseña and Alaniz to their appointed positions, OR 2. Staff will schedule interviews with all candidates at the Regular Meeting of City Council on July 14, 2020. FISCAL IMPACT: There would be no fiscal impact created by this action. Planning Commissioners are paid a stipend of $50.00 a month, which would continue with the new appointments. APPROVALS: Debra Thomas Completed 06/15/2020 4:56 PM City Attorney Completed 06/16/2020 10:56 AM Finance Completed 06/18/2020 3:29 PM City Manager Completed 06/18/2020 4:00 PM City Council Pending 06/23/2020 6:00 PM H.13 Packet Pg. 270 AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Adoption of the Fiscal Year 2020-2021 Budget PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2020-2021. 2030 VISION STATEMENT: This staff report supports City Council Mission to “preserve and protect our community and its exceptional quality of life through thoughtful planning within the constraints of fiscally responsible government.” This staff report also supports City Council’s 2030 goals: ✓ To “Ensure our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations; ✓ To “Maintain Public Safety” by ensuring staff levels for police services remain adequate for our community; ✓ To “Promote Economic Development” through the continuous review and update of the Zoning Code and General Plan; ✓ To “Develop and Implement Successful Partnerships” through working with community groups, other government agencies, creating public and private partnerships to facilitate the delivery of services that would benefit our community; and ✓ To “Engage in Proactive Communication” by utilizing technology and web-based tools to disseminate information to the community. BACKGROUND and DISCUSSION The Proposed Budget for Fiscal Year (FY) 2020-21 was introduced on May 26, 2020. Deliberations continued on June 9, 2020. As part of the deliberations, several items were discussed, and the recommendation was to return to City Council on June 23, 2020 to adopt the FY2020-21 Budget. FY2020-21 BUDGET BY FUND Table 1 City of Grand Terrace FY2020-21 Proposed Revenue, Expense & Fund Balance H.14 Packet Pg. 271 Fund Fund Title Fund Balance, June 30, 2020 Proposed Revenues FY2020-21 Proposed Expenditures FY2020-21 Fund Balance, June 30, 2021 GENERAL FUND 10 GENERALFUND $2,722,897 $5,819,989 $5,910,363 $2,632,523 61 COMMUNITY BENEFITS FUND $18,340 $10,000 $10,000 $18,340 62 LIGHT UP GRAND TERRACE $3 $10,000 $10,000 $3 63 GT ILLEGAL FIREWORKS ENF. $456 $250 $250 $456 64 PUBLIC SAFETY FUND $18,576 $0 $0 $18,576 68 40TH YEAR BIRTHDAY CELEB. FUND $0 $0 $0 $0 69 COMMUNITY DAY FUND $5 $0 $0 $5 70 EQUIPMENT REPLACEMENT RSRVE $1 $0 $0 $1 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $702,895 $89,000 $0 $791,895 12 STORM DRAIN FUND $253,129 $1,000 $0 $254,129 13 PARK FUND $109,559 $1,000 $0 $110,559 19 FACILITIES FUND $392,391 $21,000 $0 $413,391 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS) $99,507 $150,000 $150,000 $99,507 15 AIR QUALITY IMPROVEMENT FUND $10,498 $13,000 $13,000 $10,498 16 GAS TAX FUND $121,842 $650,800 $650,000 $122,642 17 TRAFFIC SAFETY FUND $14,230 $4,000 $4,000 $14,230 20 MEASURE "I" FUND $184,097 $200,000 $200,000 $184,097 25 SPRING MOUNTAIN RANCH $809,621 $53,000 $0 $862,621 26 LNDSCP & LGTG ASSESSMENT DIST $10,485 $48,584 $48,584 $10,485 67 PUBLIC, EDUCATION & GOVT (PEG) $81,764 $21,500 $21,500 $81,764 76 EIFD - ENHANCED INFRAST FIN DIST ($45,523) $0 $0 ($45,523) 90 COVID-19 FEMA REIMB. FUND ($0) $40,000 $40,000 ($0) ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $528,490 $7,000 $7,000 $528,490 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $7,390 $69,934 $69,934 $7,390 65 SENIOR BUS PROGRAM FUND $23,923 $65,450 $65,450 $23,923 66 CAL RECYCLE GRANT $82 $5,000 $5,000 $82 73 ACTIVE TRANSPORTATION PRGRM ($3) $0 $0 ($3) 74 HIGHWAY SAFETY IMPROV PRGRM $0 $185,000 $185,000 $0 77 SO, CAL INCENTIVE PROJ (SCIP) $0 $0 $0 $0 H.14 Packet Pg. 272 City of Grand Terrace FY2020-21 Proposed Revenue, Expense & Fund Balance Fund Fund Title Fund Balance, June 30, 2020 Proposed Revenues FY2020-21 Proposed Expenditures FY2020-21 Fund Balance, June 30, 2021 SUCCESSOR AGENCY 31 S/A RDA OBLIGATION RET. FUND $0 $301,438 $301,438 $0 32 S/A CAPITAL PROJECTS FUND $8 $18,000 $18,000 $8 33 S/A DEBT SERVICE FUND $641 $283,438 $283,438 $641 36 2011 TABS A & B BOND PROCEEDS $384,775 $0 $0 $384,775 CAPITAL PROJECT FUNDS 45 CAPITAL IMPROVEMENTS - COMMERCE WAY ($0) $0 $0 ($0) 46 CAPITAL IMPROVEMENTS - STREETS ($0) $0 $0 ($0) 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $172,533 $0 $0 $172,533 50 CAPITAL PROJECT BOND PROCEEDS $0 $0 $0 $0 52 HOUSING AUTHORITY $863,087 $50,000 $50,000 $863,087 95 DOG PARK ENDOWMENT FUND $13,234 $0 $0 $13,234 TOTAL $7,498,933 $8,118,383 $8,042,957 $7,574,359 GENERAL FUND REVENUE & EXPENSE As presented to City Council on June 9, 2020, below are the General Fund’s FY2020-21 revenue and expenditure appropriations: Table 2 City of Grand Terrace FY 2020-21 General Fund Revenue and Expenditure Report 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Revenues Property Tax $1,980,000 $1,881,364 $1,971,250 $1,891,261 $1,971,250 Receipts - RPTTF $1,090,000 $1,441,813 $1,442,400 $1,443,006 $1,668,400 Sale of Property $80,000 $0 $0 $3,720 $0 Franchise Fees $524,300 $520,774 $534,790 $437,529 $445,000 Licenses, Fees & Permits $434,186 $422,427 $456,510 $329,086 $329,090 H.14 Packet Pg. 273 City of Grand Terrace FY 2020-21 General Fund Revenue and Expenditure Report 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Sales Tax $770,000 $831,321 $785,400 $675,034 $725,000 Intergovernmental Revenue/Grants $26,500 $46,209 $26,500 $63,708 $160,000 Charges for Services $140,100 $141,143 $207,900 $80,299 $100,300 Fines & Forfeitures $62,500 $71,593 $72,500 $52,087 $35,100 Miscellaneous $114,714 $78,919 $15,148 $506 $0 Use of Money/Property $27,000 $93,771 $62,000 $63,016 $67,500 Wastewater Receipts $300,000 $318,349 $318,349 $318,349 $318,349 Transfers In $2,352 $2,379 $84,450 $84,450 $0 Receipts - Sr Ctr $60,000 $0 $0 $0 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Expenditures by Category Salaries $1,221,447 $1,210,981 $1,246,881 $1,220,510 $1,083,626 Benefits $769,091 $739,524 $842,690 $809,209 $1,066,206 Materials & Supplies $208,645 $208,439 $225,917 $242,958 $190,957 Professional/Cont. Svcs $3,354,687 $3,316,160 $3,471,796 $3,322,888 $3,352,541 Equipment $0 $0 $0 ($0) $1 Lease of Facility/Equip. $8,549 $8,549 $8,000 $19,324 $19,324 Utilities $137,957 $141,041 $145,000 $143,858 $143,858 Overhead Cost Allocation ($87,450) ($87,450) ($84,950) ($84,950) ($81,950) Capital Projects $0 $0 $0 $0 $0 Debt Service $0 $0 $0 $0 $0 Transfers Out $126,326 $155,346 $125,800 $125,800 $135,800 Total Expenditures $5,739,252 $5,692,590 $5,981,134 $5,799,596 $5,910,363 Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Expenditures by Category ($5,739,252) ($5,692,590) ($5,981,134) ($5,799,596) ($5,910,363) Use of Fund Balance ($127,600) $157,472 ($3,937) ($357,545) ($90,374) USE OF FUND BALANCE As provided to City Council on June 9, 2020, the only fund requesting the use of Fund Balance is the General Fund, in the amount of $90,374, as shown in the table below: Table 3 City of Grand Terrace H.14 Packet Pg. 274 Use of Fund Balance FUND Revenues Expense Total Use of Fund Balance 10 General Fund $5,819,989 $5,910,363 $90,374 TOTAL $5,819,989 $5,910,363 $90,374 FISCAL IMPACT: The FY2020-21 Proposed Budget provides the funding and expenditure plan for all funds. As such, it serves as the City’s financial plan for the upcoming fiscal year. The City Council will be kept apprised regarding actual operating results for its major funds through regular financial reporting throughout the year. Budget reviews will include an update of the FY2020-21 projected revenues, expenditures and any recommended adjustment for that fiscal year budget at that time. ATTACHMENTS: • Resolution 2020-XX Adopt FY2020-21 Budget (DOCX) • Attachment A_FY2020-21 Adopted Budget-1 (PDF) APPROVALS: Cynthia A. Fortune Completed 06/14/2020 7:14 PM Finance Completed 06/14/2020 7:14 PM City Attorney Completed 06/16/2020 2:35 PM City Manager Completed 06/18/2020 3:20 PM City Council Pending 06/23/2020 6:00 PM H.14 Packet Pg. 275 RESOLUTION NO. 2020-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2020-2021 Recitals WHEREAS, a Proposed Budget for Fiscal Year 2020-2021 was introduced during a regularly scheduled City Council meeting on May 26, 2020; and WHEREAS, continued deliberations for the Annual Budget for Fiscal Year 2020- 2021 was continued during a regularly scheduled City Council meeting on June 9, 2020; and WHEREAS, the City Manager has heretofore submitted to the City Council a Proposed Budget for the City for Fiscal Year 2020-2021, a copy of which, as may have been amended by the City Council, is on file in the City Clerk’s Department and is available for public inspection; and WHEREAS, the said Proposed Budget contains estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the said Proposed Budget contains the estimates of uses of fund balance as required to stabilize the delivery of City services during periods of operational deficits; and WHEREAS, the City Council authorizes payment of expenses incurred by means of a check register prepared by the Finance Department and approved at regular meetings of City Council; and WHEREAS, said expenses are recurring in nature, the amounts having been previously approved by ordinance or resolution or otherwise entailing normal, administrative expenses including tax deposits, utility costs, storage fees and related costs of doing business; and WHEREAS, the City Council has made such revisions to the Proposed Budget as so desired; and WHEREAS, the Proposed Budget conforms with the City’s 2030 Vision and 2014- 2020 Strategic Plan; and WHEREAS, the Proposed Budget, as herein approved, will enable the City Council to make adequate financial plans and will ensure that City officers can administer their respective functions in accordance with such plans. H.14.a Packet Pg. 276 At t a c h m e n t : R e s o l u t i o n 2 0 2 0 - X X A d o p t F Y 2 0 2 0 - 2 1 B u d g e t [ R e v i s i o n 1 ] ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. The Proposed Budget, with summaries listed as Attachment A to this Resolution and as on file in the City Clerk’s Department and as may have been amended by the City Council, is hereby approved and adopted as the Annual Budget of the City of Grand Terrace for Fiscal Year 2020-2021. 2. The amounts of proposed expenditures, which include the uses of fund balance specified in the approved budget, are hereby appropriated for the various budget programs and units for said fiscal years. 3. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 4. The City Clerk shall certify to the adoption of this Resolution. 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 23rd day of June, 2020. ________________________________ Darcy McNaboe Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney H.14.a Packet Pg. 277 At t a c h m e n t : R e s o l u t i o n 2 0 2 0 - X X A d o p t F Y 2 0 2 0 - 2 1 B u d g e t [ R e v i s i o n 1 ] ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) city of grand terrace FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 REVENUE & EXPENSE BY FUND Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. ATTACHMENT A H.14.b Packet Pg. 278 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 2018-19 2018-19 2019-20 2019-20 2020-21 Fund Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Adopted Budget 10 General Fund Rev $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 10 General Fund Exp $5,739,252 $5,692,590 $5,981,134 $5,799,596 $5,910,363 ($127,600)$157,472 ($3,937)($357,545)($90,374) 11 Street Fund (DIF)Rev $48,000 $97,169 $48,000 $91,318 $89,000 11 Street Fund (DIF)Exp $600,959 $30,771 $492,380 $0 $0 ($552,959)$66,398 ($444,380)$91,318 $89,000 12 Storm Drain Fund (DIF)Rev $13,250 $48,864 $13,250 $1,394 $1,000 12 Storm Drain Fund (DIF)Exp $50,000 $0 $69,570 $0 $0 ($36,750)$48,864 ($56,320)$1,394 $1,000 13 Park Fund (DIF)Rev $89,400 $219,199 $69,400 $727 $1,000 13 Park Fund (DIF)Exp $185,000 $145,510 $123,440 $27,273 $0 ($95,600)$73,689 ($54,040)($26,546)$1,000 14 SLESF (AB3229 COPS)Rev $150,050 $150,667 $100,050 $156,494 $150,000 14 SLESF (AB3229 COPS)Exp $150,050 $150,050 $100,050 $82,728 $150,000 $0 $617 $0 $73,766 $0 15 Air Quality Improvement Fund Rev $13,000 $17,285 $58,000 $16,320 $13,000 15 Air Quality Improvement Fund Exp $70,600 $60,075 $58,000 $48,055 $13,000 ($57,600)($42,790)$0 ($31,735)$0 16 Gas Tax Fund Rev $610,600 $603,365 $610,600 $586,400 $650,800 16 Gas Tax Fund Exp $658,294 $627,324 $608,880 $584,841 $650,000 ($47,694)($23,959)$1,720 $1,559 $800 17 Traffic Safety Fund Rev $6,000 $7,507 $6,000 $3,183 $4,000 17 Traffic Safety Fund Exp $0 $0 $0 $172 $4,000 $6,000 $7,507 $6,000 $3,011 $0 19 Facilities Fund (DIF)Rev $20,000 $41,748 $20,000 $35,595 $21,000 19 Facilities Fund (DIF)Exp $80,000 $0 $110,020 $0 $0 ($60,000)$41,748 ($90,020)$35,595 $21,000 20 Measure "I" Fund Rev $193,000 $219,079 $193,000 $187,273 $200,000 20 Measure "I" Fund Exp $676,179 $635,144 $193,000 $42,408 $200,000 ($483,179)($416,065)$0 $144,865 $0 21 Wastewater Disposal Fund Rev $10,000 $42,664 $10,000 $3,247 $7,000 21 Wastewater Disposal Fund Exp $10,000 $88,570 $10,000 $0 $7,000 $0 ($45,906)$0 $3,247 $0 22 Community Dev Block Grant (CDBG)Rev $47,876 $35,044 $47,876 $47,248 $69,934 22 Community Dev Block Grant (CDBG)Exp $47,876 $7,164 $47,876 $41,560 $69,934 $0 $27,880 $0 $5,688 $0 25 Spring Mtn Ranch Mitigation Fund Rev $3,000 $165,098 $3,000 $235,181 $53,000 25 Spring Mtn Ranch Mitigation Fund Exp $0 $1,940 $0 $7,855 $0 $3,000 $163,158 $3,000 $227,327 $53,000 26 Landscape & Lighting Assmnt Rev $19,440 $19,929 $47,648 $47,321 $48,584 26 Landscape & Lighting Assmnt Exp $19,440 $17,140 $48,212 $44,933 $48,584 $0 $2,789 ($564)$2,388 $0 31 Sugg Agcy RDA Obligation Fund Rev $2,065,200 $2,057,415 $2,065,200 $0 $301,438 City of Grand Terrace FY2020-21 Adopted Budget H.14.b Packet Pg. 279 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 2018-19 2018-19 2019-20 2019-20 2020-21 Fund Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Adopted Budget City of Grand Terrace FY2020-21 Adopted Budget 31 Sugg Agcy RDA Obligation Fund Exp $2,065,200 $2,053,573 $2,065,200 $1,291,114 $301,438 $0 $3,842 $0 ($1,291,114)$0 32 Succ Agcy Capital Projects Fund Rev $433,100 ($7,994)$33,100 $0 $18,000 32 Succ Agcy Capital Projects Fund Exp $433,100 $397,851 $33,100 $7,183 $18,000 $0 ($405,845)$0 ($7,183)$0 33 Succ Agcy Debt Service Fund Rev $2,032,100 $2,032,021 $2,032,100 $0 $283,438 33 Succ Agcy Debt Service Fund Exp $2,032,100 $1,082,033 $2,032,100 $917,425 $283,438 $0 $949,988 $0 ($917,425)$0 36 2011 TABs A & B Bond Proceeds Rev $0 $427,399 $0 $104,858 $0 36 2011 TABs A & B Bond Proceeds Exp $0 $1,210 $320,000 $19,607,040 $0 $0 $426,189 ($320,000)($19,502,182)$0 45 CIP - Commerce Way Rev $0 $105,992 $0 $68,387 $0 45 CIP - Commerce Way Exp $968,683 $165,681 $803,002 $8,698 $0 ($968,683)($59,689)($803,002)$59,689 $0 46 Capital Improvements: Streets Rev $718,365 $105,337 $445,000 $86,023 $0 46 Capital Improvements: Streets Exp $667,406 $978,684 $470,000 $131,989 $0 $50,959 ($873,347)($25,000)($45,966)$0 47 Capital Projects: Barton-Colton Bridge Rev $0 $0 $0 $0 $0 47 Capital Projects: Barton-Colton Bridge Exp $2,352 $2,379 $0 $0 $0 ($2,352)($2,379)$0 $0 $0 48 Capital Projects Fund Rev $526 $1,971 $0 $1,453 $0 48 Capital Projects Fund Exp $0 $1,446 $0 $1,453 $0 $526 $525 $0 $0 $0 49 Capital Projects Fund: Parks Rev $185,000 $148,846 $100,000 $28,313 $0 49 Capital Projects Fund: Parks Exp $205,623 $102,535 $253,087 $14,067 $0 ($20,623)$46,311 ($153,087)$14,246 $0 52 Housing Authority Rev $50,000 $756,517 $50,000 $4,887 $50,000 52 Housing Authority Exp $59,320 $34,537 $28,320 $49,348 $50,000 ($9,320)$721,980 $21,680 ($44,460)$0 61 Community Benefits Fund (Gen Fund)Rev $20,000 $20,347 $20,000 $5,107 $10,000 61 Community Benefits Fund (Gen Fund)Exp $20,000 $15,250 $15,000 $7,997 $10,000 $0 $5,097 $5,000 ($2,890)$0 62 Light Up Grand Terrace Fund (Gen Fu Rev $10,000 $7,758 $10,000 $13,506 $10,000 62 Light Up Grand Terrace Fund (Gen Fu Exp $10,000 $7,920 $10,000 $13,503 $10,000 $0 ($162)$0 $3 $0 63 Illegal Fireworks Enf (Gen Fund)Rev $500 $109 $500 $2 $250 63 Illegal Fireworks Enf (Gen Fund)Exp $500 $57 $500 $0 $250 $0 $52 $0 $2 $0 64 Public Safety Fund (Gen Fund)Rev $0 $388 $0 $105 $0 64 Public Safety Fund (Gen Fund)Exp $0 $0 $0 $3,250 $0 $0 $388 $0 ($3,145)$0 65 Senior Bus Program Fund Rev $37,450 $57,611 $37,450 $35,507 $65,450 65 Senior Bus Program Fund Exp $37,450 $46,900 $37,450 $57,212 $65,450 H.14.b Packet Pg. 280 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 2018-19 2018-19 2019-20 2019-20 2020-21 Fund Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Adopted Budget City of Grand Terrace FY2020-21 Adopted Budget $0 $10,711 $0 ($21,705)$0 66 Cal Recycle Grant Rev $73,484 $29,630 $5,000 $48 $5,000 66 Cal Recycle Grant Exp $73,484 $29,630 $5,000 $0 $5,000 $0 $0 $0 $48 $0 67 Public Education & Government Acces Rev $21,500 $22,118 $21,500 $12,217 $21,500 67 Public Education & Government Acces Exp $21,500 $0 $21,500 $0 $21,500 $0 $22,118 $0 $12,217 $0 68 40th Year Birthday Celebration Fund (G Rev $39,300 $22,947 $0 $18 $0 68 40th Year Birthday Celebration Fund (G Exp $39,300 $35,766 $0 $18 $0 $0 ($12,819)$0 $0 $0 69 Community Day Fund (Gen Fund)Rev $0 $2,050 $0 $5 $0 69 Community Day Fund (Gen Fund)Exp $0 $2,050 $0 $0 $0 $0 $0 $0 $5 $0 70 Equipment Replacement Reserve (Gen Rev $0 $18 $0 $5 $0 70 Equipment Replacement Reserve (Gen Exp $0 $0 $0 $1,010 $0 $0 $18 $0 ($1,005)$0 73 Active Transportation Program (ATP)Rev $120,000 $123,284 $100,000 $0 $0 73 Active Transportation Program (ATP)Exp $119,810 $52,662 $99,810 $3 $0 $190 $70,622 $190 ($3)$0 74 Highway Safety Improvement Program Rev $235,000 $24,956 $185,000 $13,390 $185,000 74 Highway Safety Improvement Program Exp $200,000 $24,956 $184,690 $13,390 $185,000 $35,000 $0 $310 $0 $0 76 Enhanced Infrastructure Finance Distri Rev $0 $21 $0 $0 $0 76 Enhanced Infrastructure Finance Distri Exp $0 $8,100 $0 $3,880 $0 $0 ($8,079)$0 ($3,880)$0 77 So Cal Incentive Project (SCIP) Grant Rev $0 $0 $140,000 $134,010 $0 77 So Cal Incentive Project (SCIP) Grant Exp $0 $0 $140,000 $134,010 $0 $0 $0 $0 $0 $0 90 COVID-19 FEMA Reimbursement Fun Rev $0 $0 $0 $21,145 $40,000 90 COVID-19 FEMA Reimbursement Fun Exp $0 $0 $0 $21,145 $40,000 $0 $0 $0 ($0)$0 95 Dog Park Endowment Fund Rev $0 $0 $0 $115 $0 95 Dog Park Endowment Fund Exp $0 $0 $0 $0 $0 $0 $0 $0 $115 $0 Total Revenue $12,876,793 $13,456,421 $12,448,871 $7,382,855 $8,118,383 Total Expense $15,243,478 $12,499,498 $14,361,321 $28,963,156 $8,042,957 ($2,366,685)$956,923 ($1,912,450)($21,580,301)$75,426 H.14.b Packet Pg. 281 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) city of grand terrace FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND BALANCE REPORT Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 282 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) R E Fund Fund Title Actual Fund Balance, June 30, 2018 Actual Revenues FY2018-19 Actual Expenditures FY2018-19 Actual Fund Balance, June 30, 2019 GENERAL FUND 10 GENERALFUND $3,317,316 $5,850,062 $5,919,740 $3,247,638 61 COMMUNITY BENEFITS FUND $16,133 $20,347 $15,250 $21,230 62 LIGHT UP GRAND TERRACE $162 $7,758 $7,920 $0 63 GT ILLEGAL FIREWORKS ENFORCEMENT $402 $109 $57 $454 64 PUBLIC SAFETY FUND $21,333 $388 $0 $21,721 68 40TH YEAR BIRTHDAY CELEBRATION FUND $12,819 $22,947 $35,766 $0 69 COMMUNITY DAY FUND $0 $2,050 $2,050 $0 70 EQUIPMENT REPLACEMENT RESERVE FUND $988 $18 $0 $1,006 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $545,179 $97,169 $30,771 $611,577 12 STORM DRAIN FUND $202,871 $48,864 $0 $251,735 13 PARK FUND $62,416 $219,199 $145,510 $136,105 19 FACILITIES FUND $315,048 $41,748 $0 $356,796 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$25,124 $150,667 $150,050 $25,741 15 AIR QUALITY IMPROVEMENT FUND $85,023 $17,285 $60,075 $42,233 16 GAS TAX FUND $144,242 $603,365 $627,324 $120,283 17 TRAFFIC SAFETY FUND $3,712 $7,507 $0 $11,219 20 MEASURE "I" FUND $455,297 $219,079 $635,144 $39,232 25 SPRING MOUNTAIN RANCH $419,136 $165,098 $1,940 $582,294 26 LNDSCP & LGTG ASSESSMENT DIST $5,308 $19,929 $17,140 $8,097 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $47,429 $22,118 $0 $69,547 76 EIFD - ENHANCED INFRAST FIN DIST ($33,564)$21 $8,100 ($41,643) 90 COVID-19 FEMA REIMBURSEMENT FUND $0 $0 $0 $0 ENTERPRISE FUND 21 WASTE WATER DISPOSAL FUND $571,149 $42,664 $88,570 $525,243 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT ($26,178)$35,044 $7,164 $1,702 65 SENIOR BUS PROGRAM FUND $34,917 $57,611 $46,900 $45,628 66 CAL RECYCLE GRANT $34 $29,630 $29,630 $34 73 ACTIVE TRANSPORTATION PRGRM FUND ($70,622)$123,284 $52,662 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $0 $24,956 $24,956 $0 77 SO CAL INCENTIVE PROJ (SCIP)$0 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA OBLIGATION RETIREMENT FUND $1,287,272 $2,057,415 $2,053,573 $1,291,114 32 S/A CAPITAL PROJECTS FUND $1,036 ($7,994)$397,851 ($404,809) 33 S/A DEBT SERVICE FUND $119,078 $2,032,021 $1,082,033 $1,069,066 36 2011 TABS A & B BOND PROCEEDS $19,721,768 $427,399 $1,210 $20,147,957 CAPITAL PROJECT FUNDS 45 CAPITAL IMPROVEMENTS - COMMERCE WAY $0 $105,992 $165,681 ($59,689) 46 CAPITAL IMPROVEMENTS - STREETS $919,313 $105,337 $978,684 $45,966 47 CAP.PRJ. BARTON/COLTON BRIDGE $2,379 $0 $2,379 $0 48 CAPITAL PROJECTS FUND ($525)$1,971 $1,446 $0 49 CAPITAL PROJECTS FUND- PARKS $111,976 $148,846 $102,535 $158,287 50 CAPITAL PROJECT BOND PROCEEDS $0 $0 $0 $0 52 HOUSING AUTHORITY $185,567 $756,517 $34,537 $907,547 95 DOG PARK ENDOWMENT FUND $13,119 $0 $0 $13,119 $28,516,657 $13,456,421 $12,726,648 $29,246,430 City of Grand Terrace FY2018-19 Revenue, Expense & Fund Balance H.14.b Packet Pg. 283 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) R E Fund Fund Title Actual Fund Balance, June 30, 2019 Estimated Revenues FY2019-20 Estimated Expenditures FY2019-20 Estimated Fund Balance, June 30, 2020 GENERAL FUND 10 GENERALFUND $3,247,638 $5,442,052 $5,966,792 $2,722,897 61 COMMUNITY BENEFITS FUND $21,230 $5,107 $7,997 $18,340 62 LIGHT UP GRAND TERRACE $0 $13,506 $13,503 $3 63 GT ILLEGAL FIREWORKS ENFORCEMENT $454 $2 $0 $456 64 PUBLIC SAFETY FUND $21,721 $105 $3,250 $18,576 68 40TH YEAR BIRTHDAY CELEBRATION FUND $0 $18 $18 $0 69 COMMUNITY DAY FUND $0 $5 $0 $5 70 EQUIPMENT REPLACEMENT RESERVE FUND $1,006 $5 $1,010 $1 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $611,577 $91,318 $0 $702,895 12 STORM DRAIN FUND $251,735 $1,394 $0 $253,129 13 PARK FUND $136,105 $727 $27,273 $109,559 19 FACILITIES FUND $356,796 $35,595 $0 $392,391 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$25,741 $156,494 $82,728 $99,507 15 AIR QUALITY IMPROVEMENT FUND $42,233 $16,320 $48,055 $10,498 16 GAS TAX FUND $120,283 $586,400 $584,841 $121,842 17 TRAFFIC SAFETY FUND $11,219 $3,183 $172 $14,230 20 MEASURE "I" FUND $39,232 $187,273 $42,408 $184,097 25 SPRING MOUNTAIN RANCH $582,294 $235,181 $7,855 $809,621 26 LNDSCP & LGTG ASSESSMENT DIST $8,097 $47,321 $44,933 $10,485 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $69,547 $12,217 $0 $81,764 76 EIFD - ENHANCED INFRAST FIN DIST ($41,643)$0 $3,880 ($45,523) 90 COVID-19 FEMA REIMBURSEMENT FUND $0 $21,145 $21,145 ($0) ENTERPRISE FUND 21 WASTE WATER DISPOSAL FUND $525,243 $3,247 $0 $528,490 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $1,702 $47,248 $41,560 $7,390 65 SENIOR BUS PROGRAM FUND $45,628 $35,507 $57,212 $23,923 66 CAL RECYCLE GRANT $34 $48 $0 $82 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $3 ($3) 74 HIGHWAY SAFETY IMPROV PROGRAM $0 $13,390 $13,390 $0 77 SO CAL INCENTIVE PROJ (SCIP)$0 $134,010 $134,010 $0 SUCCESSOR AGENCY 31 S/A RDA OBLIGATION RETIREMENT FUND $1,291,114 $0 $1,291,114 $0 32 S/A CAPITAL PROJECTS FUND ($404,809)$0 $7,183 $8 33 S/A DEBT SERVICE FUND $1,069,066 $0 $917,425 $641 36 2011 TABS A & B BOND PROCEEDS $20,147,957 $104,858 $19,607,040 $384,775 CAPITAL PROJECT FUNDS 45 CAPITAL IMPROVEMENTS - COMMERCE WAY ($59,689)$68,387 $8,698 ($0) 46 CAPITAL IMPROVEMENTS - STREETS $45,966 $86,023 $131,989 ($0) 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $1,453 $1,453 $0 49 CAPITAL PROJECTS FUND- PARKS $158,287 $28,313 $14,067 $172,533 50 CAPITAL PROJECT BOND PROCEEDS $0 $0 52 HOUSING AUTHORITY $907,547 $4,887 $49,348 $863,087 95 DOG PARK ENDOWMENT FUND $13,119 $115 $0 $13,234 $29,246,430 $7,382,855 $29,130,352 $7,498,933 City of Grand Terrace FY2019-20 Estimated Revenue, Expense & Fund Balance H.14.b Packet Pg. 284 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) R E Fund Fund Title Estimated Fund Balance, June 30, 2020 Proposed Revenues FY2020-21 Adopted Expenditures FY2020-21 Adopted Fund Balance, June 30, 2021 GENERAL FUND 10 GENERALFUND $2,722,897 $5,819,989 $5,910,363 $2,632,523 61 COMMUNITY BENEFITS FUND $18,340 $10,000 $10,000 $18,340 62 LIGHT UP GRAND TERRACE $3 $10,000 $10,000 $3 63 GT ILLEGAL FIREWORKS ENFORCEMENT $456 $250 $250 $456 64 PUBLIC SAFETY FUND $18,576 $0 $0 $18,576 68 40TH YEAR BIRTHDAY CELEBRATION FUND $0 $0 $0 $0 69 COMMUNITY DAY FUND $5 $0 $0 $5 70 EQUIPMENT REPLACEMENT RESERVE FUND $1 $0 $0 $1 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $702,895 $89,000 $0 $791,895 12 STORM DRAIN FUND $253,129 $1,000 $0 $254,129 13 PARK FUND $109,559 $1,000 $0 $110,559 19 FACILITIES FUND $392,391 $21,000 $0 $413,391 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$99,507 $150,000 $150,000 $99,507 15 AIR QUALITY IMPROVEMENT FUND $10,498 $13,000 $13,000 $10,498 16 GAS TAX FUND $121,842 $650,800 $650,000 $122,642 17 TRAFFIC SAFETY FUND $14,230 $4,000 $4,000 $14,230 20 MEASURE "I" FUND $184,097 $200,000 $200,000 $184,097 25 SPRING MOUNTAIN RANCH $809,621 $53,000 $0 $862,621 26 LNDSCP & LGTG ASSESSMENT DIST $10,485 $48,584 $48,584 $10,485 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $81,764 $21,500 $21,500 $81,764 76 EIFD - ENHANCED INFRAST FIN DIST ($45,523)$0 $0 ($45,523) 90 COVID-19 FEMA REIMBURSEMENT FUND ($0)$40,000 $40,000 ($0) ENTERPRISE FUND 21 WASTE WATER DISPOSAL FUND $528,490 $7,000 $7,000 $528,490 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $7,390 $69,934 $69,934 $7,390 65 SENIOR BUS PROGRAM FUND $23,923 $65,450 $65,450 $23,923 66 CAL RECYCLE GRANT $82 $5,000 $5,000 $82 73 ACTIVE TRANSPORTATION PRGRM FUND ($3)$0 $0 ($3) 74 HIGHWAY SAFETY IMPROV PROGRAM $0 $185,000 $185,000 $0 77 SO CAL INCENTIVE PROJ (SCIP)$0 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA OBLIGATION RETIREMENT FUND $0 $301,438 $301,438 $0 32 S/A CAPITAL PROJECTS FUND $8 $18,000 $18,000 $8 33 S/A DEBT SERVICE FUND $641 $283,438 $283,438 $641 36 2011 TABS A & B BOND PROCEEDS $384,775 $0 $0 $384,775 CAPITAL PROJECT FUNDS 45 CAPITAL IMPROVEMENTS - COMMERCE WAY ($0)$0 $0 ($0) 46 CAPITAL IMPROVEMENTS - STREETS ($0)$0 $0 ($0) 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $172,533 $0 $0 $172,533 50 CAPITAL PROJECT BOND PROCEEDS $0 $0 $0 $0 52 HOUSING AUTHORITY $863,087 $50,000 $50,000 $863,087 95 DOG PARK ENDOWMENT FUND $13,234 $0 $0 $13,234 $7,498,933 $8,118,383 $8,042,957 $7,574,359 City of Grand Terrace FY2020-21 Proposed Revenue, Expense & Fund Balance H.14.b Packet Pg. 285 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) city of grand terrace FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 REVENUE & EXPENSE SUMMARY BY FUND TYPE Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 286 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 287 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Adopted Budget Revenues Property Tax $4,064,640 $3,955,275 $4,084,098 $1,938,516 $2,321,272 Residual Receipts - RPTTF $1,090,000 $1,441,813 $1,442,400 $1,443,006 $1,668,400 Proceeds from Sale of Property $80,000 $0 $0 $3,720 $0 Franchise Fees $524,300 $520,774 $534,790 $437,529 $445,000 Licenses, Fees & Permits $617,836 $1,007,893 $620,160 $694,368 $495,090 Sales Tax $963,000 $1,048,452 $978,400 $862,143 $925,000 Intergovernmental Revenue/Grants $695,570 $471,993 $648,086 $468,379 $653,594 Charges for Services $140,100 $144,624 $207,900 $83,717 $103,300 Fines & Forfeitures $69,000 $79,051 $79,000 $55,213 $39,350 Miscellaneous $209,254 $223,731 $115,388 $76,706 $55,240 Use of Money & Property $441,050 $1,271,709 $75,050 $194,937 $83,550 Waste Water Receipts $300,000 $318,349 $318,349 $318,349 $318,349 Transfers In $3,102,243 $2,480,832 $2,825,450 $311,174 $450,238 Residual Receipts - Sr Ctr $60,000 $0 $0 $0 $0 Gas Tax $519,800 $491,925 $519,800 $495,100 $560,000 Total Revenues $12,876,793 $13,456,421 $12,448,871 $7,382,855 $8,118,383 Expenditures by Category Salaries $1,479,910 $1,464,582 $1,615,711 $1,489,223 $1,310,628 Benefits $813,476 $789,551 $974,800 $915,633 $1,177,917 Materials & Supplies $212,852 $212,646 $235,917 $253,365 $195,957 Professional/Contractual Services $8,224,855 $5,973,077 $7,314,755 $4,984,357 $4,385,786 Equipment $60,100 $55,075 $145,000 $132,980 $5,001 Lease of Facility/Equipment $8,549 $8,549 $8,000 $19,324 $19,324 Utilities $208,821 $210,555 $226,350 $247,939 $224,668 Overhead Cost Allocation $0 ($5,500)$0 ($2,548)$0 Capital Projects $893,478 $177,076 $860,188 $45,964 $40,000 Debt Service $239,600 $242,404 $239,600 $0 $233,438 Transfers Out $3,101,837 $3,371,483 $2,825,450 $20,961,369 $450,238 Total Expenditures $15,243,478 $12,499,498 $14,445,771 $29,047,606 $8,042,957 Revenues $12,876,793 $13,456,421 $12,448,871 $7,382,855 $8,118,383 Expenditures by Category ($15,243,478)($12,499,498)($14,445,771)($29,047,606)($8,042,957) Surplus or Approved Use of Fund Balance ($2,366,685)$956,923 ($1,996,900)($21,664,751)$75,426 City of Grand Terrace FY 2020-21 Adopted Citywide Revenue and Expenditure Report H.14.b Packet Pg. 288 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) General Fund Development Impact Fees Special Revenue Funds Revenues Property Tax $1,971,250 $0 $48,584 Residual Receipts - RPTTF $1,668,400 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $445,000 $0 $0 Licenses, Fees & Permits $329,090 $103,000 $63,000 Sales Tax $725,000 $0 $200,000 Intergovernmental Revenue/Grants $0 $0 $560,000 Charges for Services $160,000 $0 $211,500 Fines & Forfeitures $100,300 $3,000 $0 Miscellaneous $35,350 $0 $4,000 Use of Money & Property $5,000 $0 $0 Waste Water Receipts $67,500 $6,000 $3,000 Residual Receipts - Sr Ctr $318,349 $0 $0 Transfers In $0 $0 $0 Gas Tax $15,000 $0 $90,800 Total Revenues $5,840,239 $112,000 $1,180,884 Expenditures Salaries $1,083,626 $0 $154,663 Benefits $1,066,206 $0 $75,336 Materials & Supplies $190,957 $0 $5,000 Professional/Contractual Services $3,372,791 $0 $676,505 Equipment $1 $0 $0 Lease of Facility/Equipment $19,324 $0 $0 Utilities $143,858 $0 $80,630 Capital Projects $0 $0 $40,000 Debt Service $0 $0 $0 Transfers Out $135,800 $0 $13,000Overhead Cost Allocation ($81,950)$0 $81,950 Total Expenditures $5,930,613 $0 $1,127,084 Impact to Fund Balance Revenues $5,840,239 $112,000 $1,180,884 Expenditures $5,930,613 $0 $1,127,084 Net - Increase to or (Use of) Fund Balance ($90,374)$112,000 $53,800 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund Type H.14.b Packet Pg. 289 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 21 52 Enterprise Fund Grant Funds Successor Agency Revenues Property Tax $0 $0 $301,438 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $282,094 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $240 $0 Waste Water Receipts $7,000 $50 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Gas Tax $0 $43,000 $301,438 Total Revenues $7,000 $325,384 $602,876 Expenditures Salaries $0 $47,039 $11,829 Benefits $0 $29,386 $1,462 Materials & Supplies $0 $0 $0 Professional/Contractual Services $7,000 $243,959 $54,709 Lease of Facility/Equipment $0 $5,000 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $233,438 Transfers Out $0 $0 $301,438 Overhead Cost Allocation $0 $0 $0 Total Expenditures $7,000 $325,384 $602,876 Impact to Fund Balance Revenues $7,000 $325,384 $602,876 Expenditures $7,000 $325,384 $602,876 Net - Increase to or (Use of) Fund Balance $0 $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund Type H.14.b Packet Pg. 290 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 70 Capital Project Funds Housing Authority TOTAL Revenues Property Tax $0 $0 $2,321,272 Residual Receipts - RPTTF $0 $0 $1,668,400 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $445,000 Licenses, Fees & Permits $0 $0 $495,090 Sales Tax $0 $0 $925,000 Intergovernmental Revenue/Grants $0 $0 $560,000 Charges for Services $0 $0 $653,594 Fines & Forfeitures $0 $0 $103,300 Miscellaneous $0 $0 $39,350 Use of Money & Property $0 $50,000 $55,240 Waste Water Receipts $0 $0 $83,550 Residual Receipts - Sr Ctr $0 $0 $318,349 Transfers In $0 $0 $0 Gas Tax $0 $0 $450,238 Total Revenues $0 $50,000 $8,118,383 Expenditures Salaries $0 $13,471 $1,310,628 Benefits $0 $5,527 $1,177,917 Materials & Supplies $0 $0 $195,957 Professional/Contractual Services $0 $30,822 $4,385,786 Lease of Facility/Equipment $0 $0 $5,001 Utilities $0 $0 $19,324 Utilities $0 $180 $224,668 Capital Projects $0 $0 $40,000 Debt Service $0 $0 $233,438 Transfers Out $0 $0 $450,238 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $50,000 $8,042,957 Impact to Fund Balance Revenues $0 $50,000 $8,118,383 Expenditures $0 $50,000 $8,042,957 Net - Increase to or (Use of) Fund Balance $0 $0 $75,426 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund Type H.14.b Packet Pg. 291 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) city of grand terrace FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 REVENUE & EXPENSE BY FUND & FUND TYPE Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 292 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 293 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) city of grand terrace FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 REVENUE & EXPENSE GENERAL FUND Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 294 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Adopted Budget Revenues Property Tax $1,980,000 $1,881,364 $1,971,250 $1,891,261 $1,971,250 Residual Receipts - RPTTF $1,090,000 $1,441,813 $1,442,400 $1,443,006 $1,668,400 Proceeds from Sale of Property $80,000 $0 $0 $3,720 $0 Franchise Fees $524,300 $520,774 $534,790 $437,529 $445,000 Licenses, Fees & Permits $434,186 $422,427 $456,510 $329,086 $329,090 Sales Tax $770,000 $831,321 $785,400 $675,034 $725,000 Intergovernmental Revenue/Grants $26,500 $46,209 $26,500 $63,708 $160,000 Charges for Services $140,100 $141,143 $207,900 $80,299 $100,300 Fines & Forfeitures $62,500 $71,593 $72,500 $52,087 $35,100 Miscellaneous $114,714 $78,919 $15,148 $506 $0 Use of Money & Property $27,000 $93,771 $62,000 $63,016 $67,500 Waste Water Receipts $300,000 $318,349 $318,349 $318,349 $318,349 Transfers In $2,352 $2,379 $84,450 $84,450 $0 Residual Receipts - Sr Ctr $60,000 $0 $0 $0 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Expenditures by Category Salaries $1,221,447 $1,210,981 $1,246,881 $1,220,510 $1,083,626 Benefits $769,091 $739,524 $842,690 $809,209 $1,066,206 Materials & Supplies $208,645 $208,439 $225,917 $242,958 $190,957 Professional/Contractual Services $3,354,687 $3,316,160 $3,471,796 $3,322,888 $3,352,541 Equipment $0 $0 $0 ($0)$1 Lease of Facility/Equipment $8,549 $8,549 $8,000 $19,324 $19,324 Utilities $137,957 $141,041 $145,000 $143,858 $143,858 Overhead Cost Allocation ($87,450)($87,450)($84,950)($84,950)($81,950) Capital Projects $0 $0 $0 $0 $0 Debt Service $0 $0 $0 $0 $0 Transfers Out $126,326 $155,346 $125,800 $125,800 $135,800 Total Expenditures $5,739,252 $5,692,590 $5,981,134 $5,799,596 $5,910,363 Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Expenditures by Category ($5,739,252)($5,692,590)($5,981,134)($5,799,596)($5,910,363) Surplus or Approved Use of Fund Balance ($127,600)$157,472 ($3,937)($357,545)($90,374) City of Grand Terrace FY 2020-21 Adopted General Fund Revenue and Expenditure Report by CATEGORY H.14.b Packet Pg. 295 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) GENERAL FUND FY2020-21 PROPOSED REVENUE AND EXPENDITURE CHARTS H.14.b Packet Pg. 296 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 2018-19 2018-19 2019-20 2019-20 2020-21 Adjusted Budget Actuals Adjusted Budget Year-End Projections Adopted Budget Revenues Property Tax $1,980,000 $1,881,364 $1,971,250 $1,891,261 $1,971,250 Residual Receipts - RPTTF $1,090,000 $1,441,813 $1,442,400 $1,443,006 $1,668,400 Proceeds from Sale of Property $80,000 $0 $0 $3,720 $0 Franchise Fees $524,300 $520,774 $534,790 $437,529 $445,000 Licenses, Fees & Permits $434,186 $422,427 $456,510 $329,086 $329,090 Sales Tax $770,000 $831,321 $785,400 $675,034 $725,000 Intergovernmental Revenue/Grants $26,500 $46,209 $26,500 $63,708 $160,000 Charges for Services $140,100 $141,143 $207,900 $80,299 $100,300 Fines & Forfeitures $62,500 $71,593 $72,500 $52,087 $35,100 Miscellaneous $114,714 $78,919 $15,148 $506 $0 Use of Money & Property $27,000 $93,771 $62,000 $63,016 $67,500 Waste Water Receipts $300,000 $318,349 $318,349 $318,349 $318,349 Transfers In $2,352 $2,379 $84,450 $84,450 $0 Residual Receipts - Sr Ctr $60,000 $0 $0 $0 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Expenditures by Department City Council $64,381 $63,267 $68,130 $61,600 $67,752 City Manager $798,528 $774,671 $802,531 $814,502 $730,262 City Clerk $210,097 $209,173 $161,374 $214,664 $177,880 Finance $280,425 $278,819 $404,850 $261,794 $256,843 City Attorney $211,751 $211,750 $175,000 $227,067 $209,002 Planning & Dev. Svcs $797,508 $790,783 $1,032,732 $1,012,541 $878,949 Public Works $896,811 $865,557 $674,001 $763,584 $625,707 Non-Departmental $536,818 $565,639 $607,859 $558,037 $803,891 Public Safety $1,942,933 $1,932,931 $2,054,657 $1,885,807 $2,160,076 Total Expenditures $5,739,252 $5,692,590 $5,981,134 $5,799,596 $5,910,363 Revenues $5,611,652 $5,850,062 $5,977,197 $5,442,052 $5,819,989 Expenditures by Department ($5,739,252)($5,692,590)($5,981,134)($5,799,596)($5,910,363) Surplus or Approved Use of Fund Balance ($127,600)$157,472 ($3,937)($357,545)($90,374) City of Grand Terrace FY 2020-21 Adopted General Fund Revenue and Expenditure Report by DEPARTMENT H.14.b Packet Pg. 297 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE GENERAL FUND Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 298 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) General Fund General Fund (10) In public sector accounting, the primary or catchall fund of a government, government agency, or nonprofit entity such as a university. It is similar to a firm's general ledger account, and records all assets and liabilities of the entity that are not assigned to a special purpose fund. It provides the resources necessary to sustain the day-to-day activities and thus pays for all administrative, police and operating expenses. When governments or administrators talk about balancing the budget' they typically mean balancing the budget for their general fund. General Fund (sub- funds) Community Benefits Fund (61) This fund is used to account for the grant funding program approved by the City Council to assist local community groups in providing funding for community projects that must be completed during the fiscal year. Successful applicants are required to sign a letter of agreement that outlines the terms and conditions of funding. Successful applicants are also required to provide participation data, and data that demonstrate if the funded application has achieved City Council’s outcomes. Light Up Grand Terrace Fund (62) This fund was established to record revenues & expenditures related to the annual lighting up of the City of Grand Terrace during the Christmas Season. Revenues for this fund come from donations from various individuals and organizations supporting the festivities. GT Illegal Fireworks Enforcement (63) This fund accounts for revenues received in the enforcement of campaign against illegal fireworks in the City of Grand Terrace, most especially around the Fourth of July holiday. Expenditures incurred relating to illegal fireworks enforcement are also recorded in this fund. Public Safety Fund (64) This fund was initially established to account for the QLEAP funding (Quality of Life Enhancement and Preservation) for public safety enhancements approved by the City Council. This fund will account for financial transactions relating to public safety charges for overtime, City camera projects, weekend code enforcement and emergency operations coordination. 40th Year Birthday Celebration Fund (68) This fund was established to record revenues & expenditures related to the 40th year birthday celebration for the City of Grand Terrace. Revenues for this fund come from private donations from various individuals and organizations supporting the yearlong celebration of activities. H.14.b Packet Pg. 299 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) General Fund Community Day Fund (69) This fund was established to record revenues & expenditures related to the City’s annual Community Day. This day of celebration is normally help on the first Saturday of June of every year. The majority of revenues for this fund come from private donations from various individuals and organizations supporting the yearlong celebration of activities. Equipment Replacement Reserve Fund (70) This fund accounts for all financial transactions involving the purchase of budgeted capital expenditures funded by reserves for equipment replacement. The General Fund provided the initial funding for this equipment replacement reserve fund. H.14.b Packet Pg. 300 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 10 61 62 General Fund Community Benefits Fund Light Up Grand Terrace Revenues Property Tax $1,971,250 $0 $0 Residual Receipts - RPTTF $1,668,400 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $445,000 $0 $0 Licenses, Fees & Permits $329,090 $0 $0 Sales Tax $725,000 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $160,000 $0 $0 Charges for Services $100,300 $0 $0 Fines & Forfeitures $35,100 $0 $0 Miscellaneous $0 $0 $5,000 Use of Money & Property $67,500 $0 $0 Waste Water Receipts $318,349 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $10,000 $5,000 Total Revenues $5,819,989 $10,000 $10,000 Expenditures Salaries $1,083,626 $0 $0 Benefits $1,066,206 $0 $0 Materials & Supplies $190,957 $0 $0 Professional/Contractual Services $3,352,541 $10,000 $10,000 Equipment $1 $0 $0 Lease of Facility/Equipment $19,324 $0 $0 Utilities $143,858 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $135,800 $0 $0 Overhead Cost Allocation ($81,950)$0 $0 Total Expenditures $5,910,363 $10,000 $10,000 Impact to Fund Balance Revenues $5,819,989 $10,000 $10,000 Expenditures $5,910,363 $10,000 $10,000 Net - Increase to or (Use of) Fund Balance ($90,374)$0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund GENERAL FUNDS H.14.b Packet Pg. 301 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 63 64 68 GT Illegal Fireworks Enforcement Public Safety Fund 40th Year Birthday Celebration Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $250 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $250 $0 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $250 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $250 $0 $0 Impact to Fund Balance Revenues $250 $0 $0 Expenditures $250 $0 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund GENERAL FUNDS H.14.b Packet Pg. 302 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 69 70 Community Day Fund Equipment Replacement Reserve TOTAL Revenues Property Tax $0 $0 $1,971,250 Residual Receipts - RPTTF $0 $0 $1,668,400 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $445,000 Licenses, Fees & Permits $0 $0 $329,090 Sales Tax $0 $0 $725,000 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $160,000 Charges for Services $0 $0 $100,300 Fines & Forfeitures $0 $0 $35,350 Miscellaneous $0 $0 $5,000 Use of Money & Property $0 $0 $67,500 Waste Water Receipts $0 $0 $318,349 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $15,000 Total Revenues $0 $0 $5,840,239 Expenditures Salaries $0 $0 $1,083,626 Benefits $0 $0 $1,066,206 Materials & Supplies $0 $0 $190,957 Professional/Contractual Services $0 $0 $3,372,791 Lease of Facility/Equipment $0 $0 $1 Utilities $0 $0 $19,324 Utilities $0 $0 $143,858 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $135,800 Overhead Cost Allocation $0 $0 ($81,950) Total Expenditures $0 $0 $5,930,613 Impact to Fund Balance Revenues $0 $5,840,239 Expenditures $0 $5,930,613 Net - Increase to or (Use of) Fund Balance $0 ($90,374) City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund GENERAL FUNDS H.14.b Packet Pg. 303 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE DEVELOPMENT IMPACT FEES Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 304 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Development Impact Fees Street Improvements Fund (11) All new development is required to pay a Development Impact Fee for Streets. This fund accounts for all revenue collected for Street Capital Improvement Fees under the Municipal Code. Funds should be expended in accordance with the latest adopted fiscal impact study and capital needs assessment. Storm Drain Improvements Fund (12) All new development is required to pay a Development Impact Fee for Storm Drain Capital Improvement. This fund accounts for all revenue collected for Storm Drain Capital Improvement Fees under the Municipal Code. Funds should be expended in accordance with the latest adopted fiscal impact study and capital needs assessment. Storm drain capital improvement and maintenance fund, for the purpose of developing a storm drain master plan and a storm drain system in accordance with the master plan. The fees shall be established by a resolution and shall be placed in a fund exclusively for the use specified in this subsection. (Ord. 102 § 18, 1986; Ord. 44 § 2(D), 1981) Park Fund (13) All new development is required to pay a Development Impact Fee for Parks. This fund accounts for all revenue collected for Park Improvement Capital Improvement Fees under the Municipal Code. Funds should be expended in accordance with the latest adopted fiscal impact study and capital needs assessment or master plan. Park capital improvement and maintenance fund, for the purpose of purchasing the land and developing and maintaining the City park system. The City Council shall have the option to request dedication of land for park purposes or, in lieu thereof, request that the applicant pay a fee in accordance with the resolution setting the fees. (Ord. 102 § 18, 1986; Ord. 44 § 2(D), 1981). Facilities Development Fund (19) Public Use Facilities Fund development impact fee. Funds should be expended in accordance with the latest adopted fiscal impact study and capital needs assessment or master plan. H.14.b Packet Pg. 305 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 11 12 13 Street Fund Storm Drain Fund Park Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $83,000 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $3,000 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $3,000 $1,000 $1,000 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $89,000 $1,000 $1,000 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $0 $0 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $0 $0 Impact to Fund Balance Revenues $89,000 $1,000 $1,000 Expenditures $0 $0 $0 Net - Increase to or (Use of) Fund Balance $89,000 $1,000 $1,000 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund DEVELOPMENT IMPACT FEES H.14.b Packet Pg. 306 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 19 Facilities Fund Total Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $20,000 $103,000 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $0 Charges for Services $0 $3,000 Fines & Forfeitures $0 $0 Miscellaneous $0 $0 Use of Money & Property $1,000 $6,000 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $0 Total Revenues $21,000 $112,000 Expenditures Salaries $0 $0 Benefits $0 $0 Materials & Supplies $0 $0 Professional/Contractual Services $0 $0 Lease of Facility/Equipment $0 $0 Utilities $0 $0 Utilities $0 $0 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $0 $0 Impact to Fund Balance Revenues $21,000 $112,000 Expenditures $0 $0 Net - Increase to or (Use of) Fund Balance $21,000 $112,000 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund DEVELOPMENT IMPACT FEES H.14.b Packet Pg. 307 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE SPECIAL REVENUE FUNDS Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 308 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Special Revenue Funds Supplemental Law Enforcement Services (SLESF) Fund (14) State Legislature has granted monies for the purpose of providing funds to local governments for front line law enforcement services. GC 30061-30065. This was originally funded by the state as a pacifier to local governments for the ERAF shift. Air Quality Improvement Fund (15) "Mobile source air pollution reduction programs" means any program or project implemented by the City to reduce air pollution from motor vehicles which it determines will be consistent with the California Clean Air Act of 1988 or the plan proposed pursuant to Article 5 (commencing with Section 40460) of Chapter 5.5 of Part 3 of the California Health and Safety Code. All revenues received from the SCAQMD and deposited in the fund shall be exclusively expended on mobile source emission reduction programs as defined in Section 16.04.020. Such revenues and any interest earned on the revenues shall be expended within one year of the completion of the programs. Gas Tax Fund (16) The Gas Tax Fund is the result of laws that tax the sale of gasoline. The City’s share of gas tax revenue is based on a formula consisting of vehicle registration, assessed valuation, and population. The funding generated is used to perform citywide repairs and restoration to existing roadways, reduce congestion, improve safety, and provide for the construction of assets within the public right-of-way. The Gas Tax funds the maintenance of street lighting, traffic signals, traffic signs, and related facilities. Traffic Safety Fund (17) VEHICLE CODE SECTIONS 42200-42205 42200. (a) Of the total amount of fines and forfeitures received by a city under Section 1463 of the Penal Code that proportion which is represented by fines and forfeitures collected from any person charged with a misdemeanor under this code following arrest by an officer employed by a city, shall be paid into the treasury of the city and deposited in a special fund to be known as the "Traffic Safety Fund," and shall be used exclusively for official traffic control devices, the maintenance thereof, equipment and supplies for traffic law enforcement and traffic accident prevention, and for the maintenance, improvement, or construction of public streets, bridges, and culverts within the city, but the fund shall not be used to pay the compensation of traffic or other police officers. The fund may be used to pay the compensation of school crossing guards who are not regular full-time members of the police department of the city. Measure I Fund (20) The San Bernardino County Transportation Authority (SBCTA) administers San Bernardino County's half-cent transportation sales tax, Measure I. This half-cent tax, initially adopted by county voters in November 1989 expired on March 31, 2010. However, county voters approved the continued imposition of the tax by SBCTA in the incorporated and unincorporated territory of the County of San Bernardino for a period of thirty (30) years beginning April 1, 2010. This one-half of one percent retail transactions and use tax is statutorily dedicated for H.14.b Packet Pg. 309 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Special Revenue Funds transportation planning, design, construction, operation and maintenance only in San Bernardino County and cannot be used for other governmental purposes or programs. This tax funds local and regional transportation projects countywide. Expenditure rules are generally similar to Gas Tax laws. Spring Mountain Ranch Fund (25) This fund is used to account for revenues & expenditures applicable to traffic mitigation fees received for Spring Mountain Ranch. Landscape and Lighting Assessment District (26) This fund accounts for revenues and expenditures from Landscape and Street Lighting District 89-1. The district is an assessment district formed under the California Street Lighting Act of 1972 for the purpose of right of way lighting and landscaping. Revenue is derived from property tax assessments levied annually to pay for the related property maintenance. Public, Educational & Government (PEG) Access Programming (67) This fund is supported by the PEG fee that is assessed to each cable subscriber. PEG access may be mandated by local or state government to provide any combination of television production equipment, training and airtime on a local cable system to enable members of the public, accredited educational institutions, and government to produce their own shows and televise them to a mass audience. Enhanced Infrastructure Financing District Fund (76) On September 29, 2014 SB 628 was signed into law by Gov. Jerry Brown. SB 628 grants cities and counties the power to create Enhanced Infrastructure Financing Districts (EIFDs) in order to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. SB 628 expands on the powers granted to cities and counties pursuant to Infrastructure Financing Districts (IFDs) and Community Facility Districts (CFDs). EIFDs provide greater flexibility to local governments seeking to invest in infrastructure and community revitalization, including a lower voter approval threshold to issue bonds and a wider range of infrastructure investments. This fund will account for all financial activities related to all EIFD efforts. COVID-19 Reimbursement Fund (90) This fund was created to account for costs incurred by the City as a result of the COVID-19 pandemic and to provide the ability to request reimbursement form the County, State and Federal government for these costs. This will include mitigation, testing, treatment, and prevention activities and programs related to COVID-19. H.14.b Packet Pg. 310 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 14 15 16 Supplemental Law Enforcement Svcs Fund (SLESF) Air Quality Improvement Fund Gas Tax Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $13,000 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $560,000 Intergovernmental Revenue/Grants $150,000 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $90,800 Total Revenues $150,000 $13,000 $650,800 Expenditures Salaries $0 $0 $154,663 Benefits $0 $0 $75,336 Materials & Supplies $0 $0 $5,000 Professional/Contractual Services $149,450 $0 $293,101 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $73,500 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $13,000 $0Overhead Cost Allocation $550 $0 $48,400 Total Expenditures $150,000 $13,000 $650,000 Impact to Fund Balance Revenues $150,000 $13,000 $650,800 Expenditures $150,000 $13,000 $650,000 Net - Increase to or (Use of) Fund Balance $0 $0 $800 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund SPECIAL REVENUE FUNDS H.14.b Packet Pg. 311 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 17 20 25 Traffic Safety Fund Measure "I" Fund Spring Mountain Ranch Mitigation Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $50,000 Sales Tax $0 $200,000 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $4,000 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $3,000 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $4,000 $200,000 $53,000 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $4,000 $127,000 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $40,000 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $33,000 $0 Total Expenditures $4,000 $200,000 $0 Impact to Fund Balance Revenues $4,000 $200,000 $53,000 Expenditures $4,000 $200,000 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $53,000 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund SPECIAL REVENUE FUNDS H.14.b Packet Pg. 312 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 26 67 76 Landscape & Lighting Assessment Dist Public, Educational & Gov't Access (PEG) Enhanced Infrastructure Fin Dist (EIFD) Revenues Property Tax $48,584 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $21,500 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $48,584 $21,500 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $41,454 $21,500 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $7,130 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $48,584 $21,500 $0 Impact to Fund Balance Revenues $48,584 $21,500 $0 Expenditures $48,584 $21,500 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund SPECIAL REVENUE FUNDS H.14.b Packet Pg. 313 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 90 COVID-19 FEMA Reimbursement Fund TOTAL Revenues Property Tax $0 $48,584 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $63,000 Sales Tax $0 $200,000 Gas Tax $0 $560,000 Intergovernmental Revenue/Grants $40,000 $211,500 Charges for Services $0 $0 Fines & Forfeitures $0 $4,000 Miscellaneous $0 $0 Use of Money & Property $0 $3,000 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $90,800 Total Revenues $40,000 $1,180,884 Expenditures Salaries $0 $154,663 Benefits $0 $75,336 Materials & Supplies $0 $5,000 Professional/Contractual Services $40,000 $676,505 Equipment $0 $0 Lease of Facility/Equipment $0 $0 Utilities $0 $80,630 Capital Projects $0 $40,000 Debt Service $0 $0 Transfers Out $0 $13,000 Overhead Cost Allocation $0 $81,950 Total Expenditures $40,000 $1,127,084 Impact to Fund Balance Revenues $40,000 $1,180,884 Expenditures $40,000 $1,127,084 Net - Increase to or (Use of) Fund Balance $0 $53,800 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund SPECIAL REVENUE FUNDS H.14.b Packet Pg. 314 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 315 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE ENTERPRISE FUND Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 316 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Enterprise Fund Wastewater Disposal Fund (21) An enterprise fund which uses accounting similar to business accounting utilizing full accrual and depreciation of assets. The City now has a Sewer Services Agreement with the City of Colton and the Colton Utility Authority. The purpose of this fund at this time is to account for the remaining assets and liabilities of this enterprise fund formerly operated by the City. H.14.b Packet Pg. 317 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 21 Waste Water Disposal Fund TOTAL Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $0 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $0 $0 Use of Money & Property $7,000 $7,000 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $0 Total Revenues $7,000 $7,000 Expenditures Salaries $0 $0 Benefits $0 $0 Materials & Supplies $0 $0 Professional/Contractual Services $7,000 $7,000 Equipment $0 $0 Lease of Facility/Equipment $0 $0 Utilities $0 $0 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $7,000 $7,000 Impact to Fund Balance Revenues $7,000 $7,000 Expenditures $7,000 $7,000 Net - Increase to or (Use of) Fund Balance $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund ENTERPRISE FUND H.14.b Packet Pg. 318 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 319 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE GRANT FUNDS Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 320 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Grant Funds Community Development Block Grant (CDBG) Fund (22) This fund is used to record the revenue received for related federal funds and expenditures for approved CDBG programs. Senior Bus Program Fund (65) This fund accounts for all financial transactions relating to the Senior Bus Program of the City funded by grant funds from V-trans. Additional funding for this program comes from the Air Quality Improvement Fund and the City’s General Fund. CAL Recycle Grant Fund (66) This fund was established to account for all financial transactions relating to grant funding from the Department of Resources Recycling and Recovery (Cal Recycle). The eligible activities for the CAL Recycle grant funds include new or existing curbside recycling programs, neighborhood drop-off recycling programs, public education promoting the program, litter prevention and cleanup programs, cooperative regional efforts between two or more cities, counties or both & other beverage container recycling programs. Active Transportation Program (ATP) Fund (73) The ATP consolidates existing federal and state transportation programs, including the Transportation Alternatives Program (TAP), Bicycle Transportation Account (BTA), and State Safe Routes to School (SR2S), into a single program with a focus to make California a national leader in active transportation. The purpose of ATP is to encourage increased use of active modes of transportation by achieving the following goals: • Increase the proportion of trips accomplished by biking and walking, • Increase safety and mobility for non-motorized users, • Advance efforts of regional agencies to achieve greenhouse gas reduction goals, • Enhance public health, • Ensure that disadvantaged communities fully share in the benefits of the program, and • Provide a broad spectrum of projects to benefit many types of active transportation users. Highway Safety Improvement Program Grant Fund (74) The Highway Safety Improvement Program (HSIP), codified as Section 148 of Title 23, United States Code (23 U.S.C. §148) is one of the core federal-aid programs in the new federal surface transportation act, Fixing America's Surface Transportation Act (FAST), which was signed into law on December 4, 2015. The purpose of the HSIP program is to achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal land. This federal grant award to the City of Grand Terrace will be spent on proposed roadway safety improvements on Mt. Vernon Ave, which include the following: H.14.b Packet Pg. 321 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Grant Funds 1. Installation of Radar Feedback Signs. 2. Improvements to roadways and crosswalk pavement markings and striping. 3. Installation of new street lights at locations where visibility needs to be enhanced. 4. Installation of flashing STOP signs and beacons. Emergency Management Preparation Grant Fund (75) The EMPG grant fund accounts for revenues and expenditures related to the EMPG program. The EMPG Program's purpose is to provide a system of emergency preparedness for the protection of life and property in the United States from hazards. Southern California Incentive Project (SCIP) Fund (77) This SCIP promotes easy access to zero- emission vehicle infrastructure by offering rebates for the purchase and installation of eligible public electric vehicle (EV) chargers in the counties of Los Angeles, Orange, Riverside and San Bernardino. Eligible rebates include up to $70k per DC fast charger (DCFC) for installations at new sites with stub-outs (Stub-out: Includes at least 2-inch minimum spare conduit run with pull rope that is sized, installed and located per the National Electrical Code for future installation of wiring supporting up to a 480-volt AC, 4-wire, 125-kilowatt (kW) load); and up to $40k per DC fast charges for installations at replacement and make-ready sites (Replacement/Make-ready: Existing site wired with all the electrical infrastructure needed to support the installation of EV charging). H.14.b Packet Pg. 322 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 22 65 66 Community Dev Block Grant (CDBG) Senior Bus Program Cal Recycle Grant Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $69,934 $22,160 $5,000 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $240 $0 Use of Money & Property $0 $50 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $43,000 $0 Total Revenues $69,934 $65,450 $5,000 Expenditures Salaries $0 $36,648 $0 Benefits $0 $24,449 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $69,934 $4,353 $0 Equipment $0 $0 $5,000 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0Overhead Cost Allocation $0 $0 $0 Total Expenditures $69,934 $65,450 $5,000 Impact to Fund Balance Revenues $69,934 $65,450 $5,000 Expenditures $69,934 $65,450 $5,000 Net - Increase to or (Use of) Fund Balance $0 $0 $0 GRANT FUNDS City of Grand Terrace FY 2018-19 Adopted Revenue & Expense Summary by Fund Category H.14.b Packet Pg. 323 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 73 74 75 Active Transportation Program (ATP) Highway Safety Improv Program (HSIP) Emergency Mgmt Preparedness Grant (EMPG) Revenues Rev Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $185,000 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $0 $185,000 $0 Expenditures Exp Salaries $0 $10,391 $0 Benefits $0 $4,937 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $169,672 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $185,000 $0 Impact to Fund Balance Imp Revenues $0 $185,000 $0 Expenditures $0 $185,000 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 GRANT FUNDS City of Grand Terrace FY 2018-19 Adopted Revenue & Expense Summary by Fund Category H.14.b Packet Pg. 324 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 77 So. Cal Incentive Project (SCIP) TOTAL venues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $282,094 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $0 $240 Use of Money & Property $0 $50 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $43,000 Total Revenues $0 $325,384 penditures Salaries $0 $47,039 Benefits $0 $29,386 Materials & Supplies $0 $0 Professional/Contractual Services $0 $243,959 Equipment $0 $5,000 Lease of Facility/Equipment $0 $0 Utilities $0 $0 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $0 $325,384 act to Fund Balance Revenues $0 $325,384 Expenditures $0 $325,384 Net - Increase to or (Use of) Fund Balance $0 $0 GRANT FUNDS City of Grand Terrace FY 2018-19 Adopted Revenue & Expense Summary by Fund Category H.14.b Packet Pg. 325 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE SUCCESSOR AGENCY Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 326 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Successor Agency Successor Agency (S/A) Funds S/A RDA Obligation Retirement Fund (31) All property tax increment received from the County of San Bernardino for redevelopment enforceable obligations are deposited into this fund. These funds are received from the Redevelopment Property Tax Trust Fund (RPTTF). Funds needed by the S/A Capital Projects Fund, the S/A Successor Agency Fund, and the S/A CRA Projects Trust Fund are transferred out from this RDA Obligation Retirement Fund. S/A Capital Projects Fund (32) Since the passing of ABx1 26 resulting in redevelopment dissolution, all Successor Agency operating expenditures approved by the Department of Finance (DOF) as enforceable obligations are accounted for in this fund. S/A Debt Service Fund (33) Since the passing of ABx1 26 resulting in redevelopment dissolution, all Successor Agency debt service payments approved by the Department of Finance (DOF) as enforceable obligations are accounted for in this fund. S/A Debt Service Fund (36) This fund was established to account for the proceeds of the 2011 Tax Allocation Bonds and all related revenue and expenditure transactions. H.14.b Packet Pg. 327 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 31 32 33 S/A RDA Obligation Retirement / Revenue Fund S/A Capital Projects Fund S/A Debt Service Fund Revenues Property Tax $301,438 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $18,000 $283,438 Total Revenues $301,438 $18,000 $283,438 Expenditures Salaries $0 $11,829 $0 Benefits $0 $1,462 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $4,709 $50,000 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $233,438 Transfers Out $301,438 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $301,438 $18,000 $283,438 Impact to Fund Balance Revenues $301,438 $18,000 $283,438 Expenditures $301,438 $18,000 $283,438 Net - Increase to or (Use of) Fund Balance $0 $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund SUCCESSOR AGENCY H.14.b Packet Pg. 328 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 36 2011 A & B Taxx Allocation Bond Proceeds Total Revenues Property Tax $0 $301,438 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $0 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $0 $0 Use of Money & Property $0 $0 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $301,438 Total Revenues $0 $602,876 Expenditures Salaries $0 $11,829 Benefits $0 $1,462 Materials & Supplies $0 $0 Professional/Contractual Services $0 $54,709 Lease of Facility/Equipment $0 $0 Utilities $0 $0 Utilities $0 $0 Capital Projects $0 $0 Debt Service $0 $233,438 Transfers Out $0 $301,438 Overhead Cost Allocation $0 $0 Total Expenditures $0 $602,876 Impact to Fund Balance Revenues $0 $602,876 Expenditures $0 $602,876 Net - Increase to or (Use of) Fund Balance $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund SUCCESSOR AGENCY H.14.b Packet Pg. 329 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE CAPITAL IMPROVEMENT PROJECTS Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 330 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Capital Project Funds Capital Projects Funds Capital Improvements – Commerce Way (45) Capital Projects Fund used to account for financial resources used for the improvement of Commerce Way. Capital Improvements - Streets (46) Capital Projects Fund used to account for financial resources used for the improvement of major capital street projects. Capital Projects Fund – Barton/Colton Bridge (47) Capital Projects Fund used to account for financial resources used for the improvement of the Barton-Colton bridge. Costs incurred by this project will be split between the Cities of Grand Terrace and Colton. Capital Projects Fund (48) Capital Projects Fund used to account for financial resources provided by grant funds for the land acquisition and construction of the Grand Terrace Fitness Park. Capital Projects Fund – Parks (49) Capital Projects Fund used to account for financial resources used for the improvement of Parks related projects. Capital Projects – Bond Proceeds (50) Capital Projects Fund used to account for the 2011 Tax Allocation bond proceeds for capital project improvements. H.14.b Packet Pg. 331 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 45 46 47 Capital Improvements - Commerce Way Capital Improvements - Streets Capital Projects Barton-Colton Bridge Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $0 $0 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $0 $0 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $0 $0 Impact to Fund Balance Revenues $0 $0 $0 Expenditures $0 $0 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report Fund CAPITAL PROJECT FUNDS H.14.b Packet Pg. 332 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 48 49 Capital Projects Fund Capital Projects Fund - Parks Total Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $0 $0 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $0 $0 Impact to Fund Balance Revenues $0 $0 $0 Expenditures $0 $0 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report Fund CAPITAL PROJECT FUNDS H.14.b Packet Pg. 333 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 FUND TYPE HOUSING AUTHORITY Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 334 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) FUND DESCRIPTION(S) Housing Authority Housing Authority (52) This fund is used to account for the assets & liabilities of the former Low Income Housing Fund, as well as any financial transactions related to the operation of the City’s Housing program. H.14.b Packet Pg. 335 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) 52 Housing Authority TOTAL Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $0 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $50,000 $50,000 Use of Money & Property $0 $0 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $0 Total Revenues $50,000 $50,000 Expenditures Salaries $13,471 $13,471 Benefits $5,527 $5,527 Materials & Supplies $0 $0 Professional/Contractual Services $30,822 $30,822 Equipment $0 $0 Lease of Facility/Equipment $0 $0 Utilities $180 $180 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $50,000 $50,000 Impact to Fund Balance Revenues $50,000 $50,000 Expenditures $50,000 $50,000 Net - Increase to or (Use of) Fund Balance $0 $0 City of Grand Terrace FY 2020-21 Adopted Revenue & Expense Report by Fund HOUSING AUTHORITY H.14.b Packet Pg. 336 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 337 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) city of grand terrace FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 POSITION SUMMARY CITY-WIDE Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 338 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 339 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) Class Title Grade 2018-19 2019-20 2020-21 Adjustments 2020-21 Annual Minimum Annual Maximum 1 Assistant City Manager R43 1.0 1.0 -1.0 $139,026 $167,263 2 Assistant Planner R23 1.0 1.0 -1.0 $49,378 $60,019 3 Assistant to the City Manager R30 ---- $69,492 $84,468 4 Budget Officer R27 1.0 1.0 -1.0 $60,026 $72,962 5 Building Official (P/T)R32 0.5 0.5 (0.5) - $76,608 $93,118 6 Building Permit Technician R21 1.0 1.0 -1.0 $44,794 $54,448 7 Bus Driver R15 0.5 1.0 -1.0 $33,428 $40,630 8 City Clerk R33 1.0 1.0 -1.0 $80,435 $97,769 9 City Manager N/A 1.0 1.0 -1.0 $215,000 $215,000 10 Code Enforcement - Animal Ctrl Offr R24 1.0 1.0 -1.0 $51,848 $63,021 11 Code Enforcement - Animal Ctrl Sp R21 1.0 1.0 (0.5) 0.5 $22,397 $27,224 12 Code Enforcement Specialist R21 ---- $22,397 $27,224 13 Community Development Director R42 ---- $124,798 $151,693 14 Department Secretary R18 1.0 1.0 (1.0) - $38,698 $47,038 15 Executive Assistant R22 1.0 1.0 (1.0) - $47,027 $57,161 16 Finance Director R38 ---- $102,663 $124,788 17 Financial Analyst R24 ---- $51,848 $63,021 18 Human Resources Technician (P/T)R20 ---- $42,656 $51,849 19 Intern-1 (P/T)R10 ---- $26,186 $31,830 20 Intern-2 (P/T)R10 ---- $26,186 $31,830 21 Maintenance Crew Lead R19 1.0 1.0 -1.0 $40,630 $49,386 22 Maintenance Crew Leader (PT)R19 ---- $40,630 $49,386 23 Maintenance Worker I R13 ---- $30,313 $36,846 24 Maintenance Worker II R15 3.0 3.0 (2.0) 1.0 $33,427 $40,631 25 Management Analyst R24 2.0 2.0 (1.0) 1.0 $51,848 $63,021 26 Office Specialist R13 2.0 2.0 (1.0) 1.0 $30,313 $36,846 27 Planning & Development Svcs Dir R40 1.0 1.0 -1.0 $113,195 $137,590 28 Planning Technician R19 ---- $40,630 $49,386 29 Principal Accountant R27 ---- $60,026 $72,962 30 Public Works Director/City Engineer R42 1.0 1.0 -1.0 $124,798 $151,693 31 Senior Finance Technician R20 ---- $42,656 $51,849 32 Sr. Code Enforcement Officer R24 ---- $51,848 $63,021 TOTAL 21.0 21.5 (7.0) 14.5 City of Grand Terrace Summary of Funded Positions H.14.b Packet Pg. 340 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 341 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) CITY OF GRAND TERRACE FY2020-21 ADOPTED BUDGET COUNCIL CHAMBERS GRAND TERRACE CIVIC CENTER - 22795 BARTON ROAD GRAND TERRACE, CA 92313 TRANSFERS CITY-WIDE Darcy McNaboe, Mayor Doug Wilson, Mayor Pro Tem Sylvia Robles, Council Member Bill Hussey, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 p.m. H.14.b Packet Pg. 342 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) INTERFUND TRANSFERS 2019-20 2020-21 2020-21 Fund Account Number Approved Adjustments Adopted OPERATIONS TRANSFERS OUT 09 CHILD CARE FUND 09-999-999-010-000 $84,450 ($84,450)$0 10 GENERAL FUND 10-190-999-000-000 $90,800 $0 $90,800 $175,250 ($84,450)$90,800 TRANSFERS IN 10 GENERAL FUND 10-800-00 $84,450 ($84,450)$0 16 GAS TAX FUND 16-800-10 $90,800 $0 $90,800 $175,250 ($84,450)$90,800 GRANTS TRANSFERS OUT 10 GENERAL FUND 10-999-999-065-000 $10,000 $20,000 $30,000 15 AIR QUALITY IMPROVEMENT FUND 15-999-999-000-000 $5,000 $8,000 $13,000 $15,000 $28,000 $43,000 TRANSFERS IN 65 SENIOR BUS PROGRAM FUND 65-800-10 $10,000 $20,000 $30,000 65 SENIOR BUS PROGRAM FUND 65-800-15 $5,000 $8,000 $13,000 $15,000 $28,000 $43,000 INTRA-FUND TRANSFERS 2019-20 2020-21 2020-21 Fund Account Number Approved Adjustments Adopted GENERAL FUND TRANSFERS OUT 10 GENERAL FUND 10-999-999-061-000 $20,000 ($10,000)$10,000 10 GENERAL FUND 10-999-999-062-000 $5,000 $0 $5,000 $25,000 ($10,000)$15,000 TRANSFERS IN 61 COMMUNITY BENEFITS FUND 61-800-10 $20,000 ($10,000)$10,000 62 LIGHT UP GRAND TERRACE FUND 62-800-10 $5,000 $0 $5,000 $25,000 ($10,000)$15,000 DEVELOPMENT IMPACT FEES (To their corresponding Capital Project Funds) TRANSFERS OUT 11 STREET FUND 11-999-999-000-000 $445,000 ($445,000)$0 13 PARKS FUND 13-999-999-000-000 $100,000 ($100,000)$0 $545,000 ($545,000)$0 TRANSFERS IN 46 CAPITAL IMPROVEMENTS - STREETS 46-999-11 $445,000 ($445,000)$0 49 CAPITAL PROJECTS FUND - PARKS 49-999-13 $100,000 ($100,000)$0 $545,000 ($545,000)$0 City of Grand Terrace FY2020-21 Adopted Transfers H.14.b Packet Pg. 343 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) City of Grand Terrace FY2020-21 Adopted Transfers 2019-20 2020-21 2020-21 Fund Account Number Approved Adjustments Adopted SUCCESSOR AGENCY TRANSFERS OUT 31 OBLIGATION RETIREMENT FUND 31-999-997-032-000 $33,100 ($15,100)$18,000 31 OBLIGATION RETIREMENT FUND 31-999-997-033-000 $2,032,100 ($1,748,662)$283,438 $2,065,200 ($1,763,762)$301,438 TRANSFERS IN 32 S/A CAPITAL PROJECTS FUND 32-997-31 $33,100 ($15,100)$18,000 33 S/A DEBT SERVICE FUND 33-997-31 $2,032,100 ($1,748,662)$283,438 $2,065,200 ($1,763,762)$301,438 TOTAL TRANSFERS OUT $2,825,450 ($2,375,212)$450,238 TOTAL TRANSFERS IN $2,825,450 ($2,375,212)$450,238 H.14.b Packet Pg. 344 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) This page left intentionally blank. H.14.b Packet Pg. 345 At t a c h m e n t : A t t a c h m e n t A _ F Y 2 0 2 0 - 2 1 A d o p t e d B u d g e t - 1 ( A d o p t i o n o f F i s c a l Y e a r 2 0 2 0 - 2 0 2 1 B u d g e t ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Consideration of Resolutions Initiating Proceedings to Levy Annual Assessments for Fiscal Year 2020-2021 for the City of Grand Terrace Landscape & Lighting Assessment District 89-1; Preliminarily Approving the Related Engineer’s Report; and Declaring Its Intention to Conduct a Public Hearing on July 14, 2020 and to Levy and Collect Annual Assessments Related Thereto PRESENTED BY: Todd Nakasaki, Management Analyst RECOMMENDATION: 1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2020-2021 FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT; AND 2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE ENGINEERS REPORT FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2020-2021; AND 3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JULY 14, 2020, ON LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2020-2021 2030 VISION STATEMENT: H.15 Packet Pg. 346 This staff report supports Goal #1 to “Ensure our Fiscal Viability by ensuring appropriate cost recovery for services.” BACKGROUND: In 1989, the City Council required developers of Tract 13364 to form an Assessment District 89-1 for the purpose of maintaining the landscaping and lighting serving the project, as required by the conditions of approval. Subsequently, two other developments were required to be included in Annexation District 89-1. The developments (Tracts 14264 and 14471) were annexed into Annexation District 89-1 as Annexation No. 1. To ensure all future developments were sustainable, Staff recommended that all future developments be annexed into Annexation District 89-1. Therefore the following amendments occurred: A. Greenbriar on Mt. Vernon Avenue (Tract 17766) was annexed into Annexation District 89-1 in 2016 as Annexation No. 2. B. Aegis Builders development on Pico Street (Tract 18793) was annexed into Annexation District 89-1 in 2016 as Annexation No. 3. C. Crestwood Development Project on Jaden Court (Tract 18071) was annexed into Annexation District 89-1 as Annexation No. 4 in 2018 D. Aegis-Van Buren Housing development on Tesoro Court/ Van Buren (Tract 18604) was annexed into Annexation District 89-1 as Annexation No. 5, in 2019. Each of the seven tracts comprises the boundaries of a zone in the Assessment District. The Assessment District has seven zones total with established assessments approved by Council and included in the Engineer’s Report. DISCUSSION: Each year, an Engineer’s Report is prepared and considered by the City Council for the levy of annual assessments for maintenance and operation of each zone within the Assessment District. Assessment of each parcel is made in the same manner within each zone, and at the same time, as payments are made for property taxes for each Property. The Engineer’s Report takes into consideration costs of operation and maintenance for the previous year of each Zone within the District and the amount assessed for each zone within Assessment District’s cost of operations and maintenance for the coming fiscal year. These costs are then spread to the benefiting properties in each zone. Staff has reviewed the expenditures for the last Fiscal Year 2019-2020. Based on the Engineer's estimate, the cost of operations and maintenance for the Zones in Fiscal H.15 Packet Pg. 347 Year 2020-2021 will differ from the cost of last year. Based upon the analysis, the assessment amount will increase for the District for Fiscal Year 2020-2021. Servicing and administration of the City’s landscape maintenance program shall be according to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15, of the Street and Highways Code of the State of California. The Proceedings will be conducted under the Landscaping and Lighting Act of 1972, Part 2, Division 15, Sections 22500 through 22679, of the Streets and Highways Code of the State of California. FISCAL IMPACT: The Engineer's Report has estimated the fiscal impact will be $55,652.05 to maintain the Assessment District. Most of this amount will be reimbursed to the City through the collection of property taxes by the County of San Bernardino for each parcel. However, there is a shortfall in of $4,834.50. This is due to the inability of the City to collect the full cost of maintenance for Zone 1 and also includes the general benefit from each of the zones, which is an impact that may be paid by the General Fund in FY 2020-2021. ATTACHMENTS: • 1. Order of Procedure (DOCX) • 2. Tract Map Zones 1-7 (PDF) • 3. Resolution - Initiating Proceedings (DOCX) • 4. FY20-21 Engineer's Report (PDF) • 5. Resolution - Approving Engineer's Report (DOCX) • 6. Resolution - Intention (to publish) (DOCX) APPROVALS: Todd Nakasaki Completed 06/17/2020 2:26 PM City Attorney Completed 06/18/2020 1:20 PM Finance Completed 06/18/2020 3:32 PM City Manager Completed 06/18/2020 4:05 PM City Council Pending 06/23/2020 6:00 PM H.15 Packet Pg. 348 ORDER OF PROCEDURE CITY OF GRANDTERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 DATE OF MEETING: June 23, 2020 STAFF: Present map showing the general boundaries of the area of the District, and showing in general terms the work of improvement to be maintained. CITY COUNCIL: Adopt RESOLUTION ORDERING CITY ENGINEER TO PREPARE PLANS, SPECIFICATIONS, COST ESTIMATE, DIAGRAM AND ASSESSMENT. STAFF: Present to the City Council the “Report,” pursuant to the “Landscaping and Street Lighting Act of 1972.” Consisting of the following 1. Plans and specifications; 2. Estimates of cost; 3. Diagram of proposed District; 4. Assessment of costs. CITY COUNCIL: Adopt RESOLUTION APPROVING ENGINEER’S “REPORT.” CITY COUNCIL: Adopt RESOLUTION OF INTENTION (For purpose of setting the public hearing on July 14, 2020) H.15.a Packet Pg. 349 At t a c h m e n t : 1 . O r d e r o f P r o c e d u r e ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 22 H.15.b Packet Pg. 350 At t a c h m e n t : 2 . T r a c t M a p Z o n e s 1 - 7 ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 23 H.15.b Packet Pg. 351 At t a c h m e n t : 2 . T r a c t M a p Z o n e s 1 - 7 ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 24 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT ZONE 4 H.15.b Packet Pg. 352 At t a c h m e n t : 2 . T r a c t M a p Z o n e s 1 - 7 ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 25 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT ZONE 5 H.15.b Packet Pg. 353 At t a c h m e n t : 2 . T r a c t M a p Z o n e s 1 - 7 ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 26 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT Zone 6 H.15.b Packet Pg. 354 At t a c h m e n t : 2 . T r a c t M a p Z o n e s 1 - 7 ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 27 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT ZONE 7 H.15.b Packet Pg. 355 At t a c h m e n t : 2 . T r a c t M a p Z o n e s 1 - 7 ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2020-2021 FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT WHEREAS, the City Council has, by previous Resolutions, formed the City of Grand Terrace LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 (hereafter referred to as “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”), in which annual assessments have been levied and collected in past fiscal years; and WHEREAS, said Act requires that proceedings for the levy of assessments shall be initiated by resolution describing any proposed new improvements or any substantial changes in existing improvements in accordance with Chapter 3 (commencing with Section 22620) of Part 2 of Division 15 of the Streets and Highway Code of the State of California, and ordering the engineer to prepare and file a report in accordance with Article 4 of Chapter 1 of said Act. WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, desires to initiate proceedings for the annual levy of assessments for the District pursuant to the terms and provisions of the "Landscaping and Street Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California. WHEREAS, the proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1, 2020, and ending June 30, 2021; and, WHEREAS, the provisions of said Division 15, Part 2 require a written "Report," consisting of the following: 1. Plans and specifications of the area of the works of improvement to be maintained; 2. An estimate of the costs for maintaining the improvements for the above referenced fiscal year; 3. A diagram of the area proposed to be assessed; 4. An assessment of the estimated costs for maintenance work for said fiscal year. H.15.c Packet Pg. 356 At t a c h m e n t : 3 . R e s o l u t i o n - I n i t i a t i n g P r o c e e d i n g s [ R e v i s i o n 1 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows: SECTION 1. That the above recitals are all true and correct. SECTION 2. The City Council desires to, and hereby does, initiate proceedings to levy annual assessments for the 2020-2021 fiscal year for the City of Grand Terrace Landscaping and Lighting Assessments District No. 89-1, including all annexed areas. SECTION 3. That the proposed maintenance work within the area proposed to be assessed shall be for certain street lighting and landscaping improvements, as said maintenance work is set forth in the "Report" to be presented to this City Council for consideration. SECTION 4. That Todd Nakasaki, Management Analyst, or his designee, is hereby ordered to prepare and file with this City Council, a "Report" relating to said annual assessment and levy in accordance with the provisions of Article IV, commencing with Section 22565 of Chapter 1 of the Streets and Highways Code of the State of California. SECTION 5. That upon completion, said "Report" shall be filed with the City Clerk, who shall then submit the same to this City Council for its consideration pursuant to Sections 22623 and 22624 of said Streets and Highways Code. SECTION 6. The City Clerk shall certify to the adoption of this Resolution. SECTION 7. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 23rd day of June, 2020. _____________________________ Darcy McNaboe Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra, City Attorney H.15.c Packet Pg. 357 At t a c h m e n t : 3 . R e s o l u t i o n - I n i t i a t i n g P r o c e e d i n g s [ R e v i s i o n 1 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) City of Grand Terrace Landscaping and Lighting Assessment District No. 89-1 2020/2021 ENGINEER’S REPORT Intent Meeting: June 23, 2020 Public Hearing: July 14, 2020 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com H.15.d Packet Pg. 358 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) ENGINEER'S REPORT AFFIDAVIT Establishment of Annual Assessments for the: Landscaping and Lighting Assessment District No. 89-1 City of Grand Terrace, County of San Bernardino, State of California This Report describes the improvements, budgets, parcels and assessments to be levied for Fiscal Year 2020/2021. Reference is hereby made to the San Bernardino County Assessor’s maps for a detailed description of the lines and dimensions of the parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this ____________ day of ______________, 2020. Willdan Financial Services Assessment Engineer On Behalf of the City of Grand Terrace By: ________________________________ Chonney Gano, Project Manager District Administration Services By: ________________________________ Richard Kopecky R. C. E. #16742 H.15.d Packet Pg. 359 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) TABLE OF CONTENTS INTRODUCTION ............................................................................................................. 1 Section I. PLANS AND SPECIFICATIONS ................................................................ 3 Improvements Authorized by the 1972 Act .............................................................. 3 District Plans and Specifications .............................................................................. 4 Section II. METHOD OF APPORTIONMENT ............................................................... 8 Proposition 218 Benefit Analysis ............................................................................. 9 Benefit Analysis ......................................................................................................... 9 Assessment Methodology ....................................................................................... 11 Assessment Range Formula ................................................................................... 11 Section III. ESTIMATE OF IMPROVEMENT COSTS .................................................. 13 Section IV. ASSESSMENT DIAGRAMS ..................................................................... 20 Section V. ASSESSMENT ROLL ............................................................................... 27 H.15.d Packet Pg. 360 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 1 INTRODUCTION The City Council of the City of Grand Terrace (the “City”) adopted its General Plan with various elements to provide guidelines for orderly development within the community. The City Council further adopted ordinances and regulations governing the development of land providing for the installation and construction of certain landscaping, lighting and appurtenant facilities to enhance the quality of life and to benefit the value of property. The requirement for the construction and installation of landscaping, lighting and appurtenant facilities is a condition of approval for development and is a requirement of issuance of a permit for the construction of any residential, commercial, industrial and planned unit development. The installation of landscaping and lighting systems and the construction of the necessary appurtenant facilities is the responsibility of the property owner/applicant, as conditions of approval of a development application. The City may cause the installation by property owners directly, or accept financial arrangements for installation of these facilities. The cost of servicing, operation, maintenance, repair and replacement of the landscaping, lighting and appurtenant facilities in turn becomes the responsibility of the benefitting properties. The owners/applicants petitioned for formation of the Landscaping Lighting Assessment District and/or annexation. These have been completed, and will increase the City’s obligation for maintenance and servicing. The City of Grand Terrace is administering a lighting system for the benefit of all parcels of land within the City. The lighting benefit is directly related to public safety and property protection. These benefits have been studied widely, locally, regionally and nationally. The City formed Landscaping and Lighting Assessment District 89-1 (the “District”) in 1989 and subsequently annexed other parcels as Annexation No. 1, Annexation No. 2 Annexation No. 3, Annexation No. 4, and Annexation No. 5 to said District to ensure a fair and equitable levying of the necessary costs of servicing and maintenance of the respective facilities, which in turn will enhance the value of each and every parcel in the District directly and collectively. The boundaries of the District, which include Annexations 1, 2, 3, 4, and 5 are the boundaries of Zone 1 - Tract 13364 filed in Map Book 203, Pages 89 through 92, Records of San Bernardino County (the “County”). The boundaries of Zone 2 - Tract 14264 and Zone 3 – Tract 14471 filed in Map Book 242, Pages 17 and 18, Zone 4 – Tract 17766 filed in Map Book 237, Pages 41 and 42, and Zone 5 – Tract 18793 filed in Map Book 115, Pages 81-82. The boundaries of Zone 6 – Tract 18071 and Zone 7 – 18604 filed in Map Book 1178 Page 18 and Map Book 1167 Page 34, respectively, of the County. Servicing and administration of the City’s landscape maintenance program shall be according to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division H.15.d Packet Pg. 361 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 2 15 of the Streets and Highways Code of the State of California (the “1972 Act”). Payment for the assessment for each parcel will be made in the same manner and at the same time as payments are made for property taxes for each property. The proceedings will be conducted under the 1972 Act Sections 22500 through 22679. This Engineer’s Report (the “Report”) is presented for the purpose of levy of annual assessment to the above described properties for the purpose of maintaining the lighting and landscaping during the Fiscal Year 2020/2021. This Report contains the necessary data required to conduct the proceedings and is submitted to the Clerk of the City for filing. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the San Bernardino County Assessor’s Office. The San Bernardino County Auditor/Controller uses Assessor’s Parcel Numbers and a dedicated fund number established for the District to identify properties to be assessed on the tax roll and the allocation of the funds collected. This Report consists of the following sections: Section I Plans and Specifications: Description of the District's improvements are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the City Clerk. Section II Method of Apportionment: A discussion of the general and special benefits associated with the overall landscaping street lighting improvements provided within the District (Proposition 218 Benefit Analysis). This section also includes a determination of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit. Section III Estimate of Improvement Costs: An estimate of the cost of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk. H.15.d Packet Pg. 362 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 3 Section IV Assessment Diagrams: A diagram showing the boundaries of the District is provided in this Report and includes all parcels that receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the San Bernardino County Assessor's Parcel Maps as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments or parcel changes therein. Reference is hereby made to the San Bernardino County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Section V Assessment Roll: A listing of the proposed assessment amount for each parcel within the District. The proposed assessment amount for each parcel is based on the parcel’s calculated proportional special benefit as outlined in the method of apportionment and proposed assessment rate established in the District Budget. These assessment amounts represent the assessments proposed to be levied and collected on the County Tax Rolls for Fiscal Year 2020/2021. Section I. PLANS AND SPECIFICATIONS Improvements Authorized by the 1972 Act As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following: • The installation or planting of landscaping. • The installation or construction of statuary, fountains, and other ornamental structures and facilities. • The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section. H.15.d Packet Pg. 363 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 4 Incidental expenses associated with the improvements including, but not limited to: • The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; • Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5. • Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: • Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. • The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. District Plans and Specifications The District provides the necessary funding source for the annual maintenance, operation and servicing of the improvements that have been constructed and installed for the benefit of properties within the District. Landscaping and appurtenant facilities generally include trees, shrubs, plants, turf, irrigation systems, and necessary appurtenances including curbs, hardscape, monumentations, fencing located in public right-of-ways, medians, parkways, and/or easements adjacent to public right-of-ways, in and along public thoroughfares and certain designated primary and secondary arterials. Lighting and appurtenant facilities includes poles, lighting fixtures, conduits and the H.15.d Packet Pg. 364 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 5 necessary equipment to maintain, operate and replace a lighting system at designated intersections, in medians, parkways and adjacent to certain public facilities in and along certain streets, right-of-ways and designated lots. The installation of planting, landscaping, irrigation systems, lighting and the construction of appurtenant facilities to be operated, serviced and maintained, is more specifically described herein whereas, the landscaping and lighting facilities have been or will be provided by developers as a condition of subdivision of land, on part of the Conditional Use review and approval process. A. ZONES OF BENEFIT In an effort to ensure an appropriate allocation of the estimated annual cost to provide the District improvements based on proportional special benefits, this District is established with benefit zones (“Zones”) as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act: “The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements.” The parcels, lots, subdivisions and developments within the District are identified and grouped into one of seven (7) Zones. Each Zone reflects the landscape improvements associated with the development of properties in that Zone, in order to fairly and equitably apportion the net cost of providing those improvements to the properties that receive special benefits from the service and activities associated with those improvements. All of the parcels in the District are identified as single-family residential properties within three residential developments. These residential developments have been grouped into seven different Zones that reflects each specific budget and improvements for that particular Zone. By establishing and utilizing a Zone structure, similar properties with similar types of improvements will be assessed a proportional amount for the services and activities provided by the District within each respective Zone. The improvements are the operation, maintenance and servicing of landscaping, lighting and appurtenant facilities described as follows: Zone 1 - Tract 13364 (a) Landscaping Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. H.15.d Packet Pg. 365 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 6 (b) Lighting Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District. A total of 5 street lights are included in the boundaries of this development. Zone 2 - Tract 14264 (a) Lighting Poles, fixtures, bulbs, conduits, equipment, posts, pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District. A total of 7 street lights are included in the boundaries of this development. Zone 3 - Tract 14471 (a) Landscaping Landscaping, planting shrubbery, trees, and vines with Lot “A” of said Tract 14471, along with irrigation system for the improvements within Lot “A”. (b) Lighting Poles, fixtures, conduits, equipment, posts, pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of- ways and easements within the boundaries of the District. A total of 6 street lights are maintained within the boundaries of this development. Zone 4 – Tract 17766 (a) Landscaping Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. (b) Lighting Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the H.15.d Packet Pg. 366 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 7 District. A total of 1 street light is included in the boundaries of this development. Zone 5 – Tract 18793 (a) Landscaping Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. (b) Lighting Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District. A total of 5 street lights are included in the boundaries of this development. Zone 6 – Tract 18071 (a) Landscaping Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. Additionally, the District will include the maintenance of a water quality basin, designed for storm water runoff purposes. (b) Lighting Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District. A total of 4 street lights are included in the boundaries of this development. H.15.d Packet Pg. 367 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 8 Zone 7 – Tract 18604 (a) Landscaping Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. Additionally, the District will include graffiti removal on the block wall along the east side of the Gage Canal within the western boundary of the tract, streetlights, and street trees along Tesoro Court and Van Buren Street. Lot: B” of said tract is designated as a retention basin and will be maintained as a dual-purpose basin, for retaining water and for a small playground. (b) Lighting Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District. A total of 3 street lights are included in the boundaries of this development. Section II. METHOD OF APPORTIONMENT The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation, and servicing of street lighting improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value: “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The formulas used for calculating assessments reflect the composition of parcels within the District (which are all residential properties) and the improvements and activities to be provided, and have been designed to fairly apportion costs based on a determination of the proportional special benefits to each parcel within each Zone, consistent with the requirements of the 1972 Act and the provisions of Proposition 218 and Article XIII D of the California Constitution. For each Zone within the District, each parcel represents one (1) Equivalent Benefit Unit (“EBU”). H.15.d Packet Pg. 368 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 9 The following formula is used to arrive at the levy amount for each parcel within each Zone: Levy per EBU (rate) x Parcel’s EBU = Parcel Levy Amount Proposition 218 Benefit Analysis The costs of the proposed improvements for Fiscal Year 2020/2021 have been identified and allocated to properties within the District based on special benefit. The improvements provided by this District and for which properties are assessed are public street lighting and landscaping improvements. These improvements generally were installed in connection with the development of the properties within the District. Article XIIID Section 2(d) defines District as follows: “District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service”; Article XIIID Section 2(i) defines Special Benefit as follows: “Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.” Article XIIID Section 4(a) defines proportional special benefit assessments as follows: “An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Benefit Analysis Special Benefit The special benefits properties within the District will receive from the proposed improvements include, but are not limited to: • Improved aesthetic appeal of nearby properties providing a positive representation of the area and properties. Total Balance to Levy = Levy per EBU Total EBU H.15.d Packet Pg. 369 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 10 • Enhanced adaptation of adequate green space, trees, and amenities within the urban environment. • Increased sense of pride in ownership of properties within the District resulting from their association with well-maintained improvements. • Enhanced quality of life and working environment within the area that is promoted by well-maintained landscaped areas and amenities. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities within public areas. • Increased social opportunities and leisure activities for customer’s residents and families, provided by a well-maintained neighborhood destination place for relaxation, socializing, and entertainment that is within easy walking distance. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The preceding special benefits contribute to the overall aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement to these properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the improvements would ultimately result in the deterioration of the improvements and facilities, which in turn could negatively impact the properties within the District. As such, the annual costs of ensuring the ongoing maintenance and operation of these improvements are considered a distinct and special benefit to the properties within the District and are therefore considered the financial obligation of those properties. The cost of any improvement or portion thereof that is considered to be of general benefit shall not be included as part of the special benefit assessments allocated to properties within the District. General Benefit In the absence of a special funding District, the City would typically provide only weed abatement and erosion control services for landscaped areas. The cost to provide this baseline level of service is approximately $0.01 per square foot for landscape areas that require maintenance. Zone 1 – Tract 13364 has approximately 29,100 square feet of landscape space, Zone 2 – Tract 14264 has no landscaping area that the City maintains and Zone 3 – Tract 14471 has approximately 9,045 square feet of landscape space, Zone 4 – Tract 17766 has approximately 3,856 square feet of landscaped space, Zone 5 – Tract 18793 has approximately 4,668 square feet of landscaped space, Zone 6 – Tract 18071 has approximately 61,750 square feet of landscaped space, Zone 7 – Tract 18604 has approximately 3,239 square feet of landscaped space. The proposed budgets for Fiscal Year 2020/2021 show the general benefit amount which will be deducted from the cost of maintenance to arrive at a net special benefit assessment H.15.d Packet Pg. 370 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 11 rate. Assessment Methodology This District was formed to establish and provide for the improvements that enhance the presentation of the surrounding properties and developments. These improvements will directly benefit the parcels to be assessed within the District. The assessments and method of apportionment is based on the premise that the assessments will be used to construct and install landscape and lighting improvements within the existing District as well as provide for the annual maintenance of those improvements, and the assessment revenues generated by District will be used solely for such purposes. The costs of the proposed improvements have been identified and allocated to properties within the District based on special benefit. The improvements to be provided by this District and for which properties will be assessed have been identified as an essential component and local amenity that provides a direct reflection and extension of the properties within the District which the property owners and residents have expressed a high level of support. The method of apportionment (method of assessment) set forth in the Report is based on the premise that each assessed property receives special benefits from the landscape and lighting improvements within the District, and the assessment obligation for each parcel reflects that parcel’s proportional special benefits as compared to other properties that receive special benefits. To identify and determine the proportional special benefit to each parcel within the District, it is necessary to consider the entire scope of the improvements provided as well as the properties that benefit from those improvements. The improvements and the associated costs described in this Report, have been carefully reviewed and have been identified and allocated based on a benefit rationale and calculations that proportionally allocate the net cost of only those improvements determined to be of special benefit to properties within the District. Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (the Proposition 218 implementing legislation). The purpose of establishing an assessment range formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. H.15.d Packet Pg. 371 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 12 As part of the District formation, balloting of property owners is required pursuant to the Article XIIID Section 4. The property owner ballots include an Assessment to be approved, as well as the approval of an assessment range formula. The assessment range formula for District assessments may be applied to future assessments within the District commencing with Fiscal Year 2018/2019 for Zone 4 – Tract 17766 and Zone 5 – Tract 18793, Fiscal Year 2019/2020 for Zone 6 – Tract 18071 and Fiscal Year 2020/2021 for Zone 7. Zone 1 – Tract 13364, Zone 2 – Tract 14264 and Zone 3 14471 does not have an increase in assessments. The following describes the assessment range formula: The Maximum Assessment is equal to the initial Assessment approved by property owners adjusted annually by the percentage increase of the Local Consumer Price Index (“CPI”) plus two percent (2%). As of January 2018, the Bureau of Labor Statistics (the “BLS”) split the Los Angeles-Riverside-Orange County Area for all Urban Consumers to Los Angeles-Long Beach-Anaheim area and Riverside-San Bernardino- Ontario Area. Each fiscal year, the Maximum Assessment will be recalculated, and a new Maximum Assessment established. Currently, the District uses the Annual Riverside-San Bernardino-Ontario CPI index to compute the CPI difference each year. For Fiscal Year 2020/2021, the percentage difference is 2.8862%. Therefore, the Maximum Assessment will increase by 4.8862%. The Maximum Assessment is adjusted annually and is calculated independent of the annual budgets and proposed assessments established for each Zone of the District. Any proposed annual assessment (rate per EBU) less than or equal to this Maximum Assessment (for each Zone) is not considered an increased assessment, even if the proposed assessment is much greater than the assessment applied in the prior fiscal year. H.15.d Packet Pg. 372 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 13 Section III. ESTIMATE OF IMPROVEMENT COSTS In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d), are greater than can conveniently be raised from a single assessment, and, as a result, shall be collected in installments and held in a reserve account. In particular, Zone 1, Zone 3, Zone 4, Zone 5, Zone 6, and Zone 7 requires trimming and pruning landscaping services that are proposed to be performed every five years. The proposed assessment includes a budgeted amount for trimming and pruning to collect for these services. The following outlines the budget to fund the District improvements based on the improvements to be maintained and the associated incidental expenses for Fiscal Year 2020/2021, resulting in the proportional assessments calculated for each parcel that will be applied to the County Tax Rolls for Fiscal Year 2020/2021. The cost of maintaining improvements for Fiscal Year 2020/2021 are summarized as follows: H.15.d Packet Pg. 373 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 14 Zone 1 Tract 13364 – Canal Budget Item Fiscal Year 2020/21 Current Assessment Energy Costs – Street Lighting $597.60 Water Supply 2,716.32 Trimming and Removal* 1,102.00 Contract Maintenance 2,080.00 Legal 600.00 Engineering 600.00 Administrative Cost 1,000.00 Pruning Cycle Maintenance** 302.00 Annual Costs Total $8,997.92 General Benefit - Collection/(Contribution) (291.00) General Fund - Collection/(Contribution) (3,060.32) Balance to Levy $5,646.60 Assessment per Parcel $282.33 Max Assessment per Parcel $282.33 Number of Parcels (EBU) 20 * Trimming and removal was a onetime service and the cost will be spread over the next five years. **Pruning services are performed every five years; the total cost of these services are spread over five years. H.15.d Packet Pg. 374 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 15 Zone 2 Tract 14264 – Forrest City Phase II Budget Item Fiscal Year 2020/21 Current Assessment Energy Costs – Street Lighting $697.00 Legal 600.00 Engineering 600.00 Administrative Cost 176.24 Annual Costs Total $2,073.24 General Benefit - Collection/(Contribution)* $0.00 General Fund - Collection/(Contribution) (657.60) Balance to Levy $1,415.64 Assessment per Parcel $1,415.64 Max Assessment per Parcel $1,415.64 Number of Parcels (EBU) 1 *Parcels under zone 2 receive no general benefit, because there is no landscaping. H.15.d Packet Pg. 375 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 16 Zone 3 Tract 14471 – Oriole Budget Item Fiscal Year 2020/21 Current Assessment Energy Costs – Street Lighting $498.00 Water Supply 488.41 Capital Reserve/Replacement Parts 371.16 Contract Maintenance 1,040.00 Legal 600.00 Engineering 600.00 Administrative Cost 1,296.03 Pruning Cycle Maintenance* 466.00 Annual Costs Total $5,359.60 General Benefit - Collection/(Contribution) (90.45) General Fund - Collection/(Contribution) 0.00 Balance to Levy $5,269.15 Assessment per Parcel $309.95 Max Assessment per Parcel $309.95 Number of Parcels (EBU) 17 * Pruning services are performed every five years, the total cost of these services will be spread over five years. * Total may not foot due to rounding. H.15.d Packet Pg. 376 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 17 Zone 4 Tract 17766 – Greenbriar Budget Item Fiscal Year 2020/21 Current Assessment Energy Costs – Street Lighting $120.00 Electrical Use for Irrigation 120.00 Water Supply 480.00 Trimming and Removal 640.00 Capital Reserve/Replacement Parts 5,143.80 Contract Maintenance 1,388.00 Legal 600.00 Engineering 600.00 Auditor Controller Charges 20.00 Administrative Cost 600.00 Annual Costs Total $9,711.80 General Benefit - Collection/(Contribution) (38.56) HOA - Collection/(Contribution) (3,839.44) Balance to Levy $5,833.80 Assessment per Parcel $166.68 Max Assessment per Parcel $166.68 Number of Parcels (EBU) 35 H.15.d Packet Pg. 377 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 18 Zone 5 Tract 18793 – Palomino Budget Item Fiscal Year 2020/21 Current Assessment Energy Costs – Street Lighting $360.00 Perimeter Wall 850.00 Trimming and Removal 1,300.00 Capital Reserve/Replacement Parts 870.52 Contract Maintenance 1,120.00 Legal 600.00 Engineering 600.00 Auditor Controller Charges 20.00 Administrative Cost 600.00 Annual Costs Total $6,320.52 General Benefit - Collection/(Contribution) (46.68) General Fund - Collection/(Contribution) $0.00 Balance to Levy $6,273.84 Assessment per Parcel $522.82 Max Assessment per Parcel $522.82 Number of Parcels (EBU) 12 * Balance to levy may not foot with Preliminary Roll due to rounding. H.15.d Packet Pg. 378 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 19 Zone 6 Tract 18071 – Jaden Budget Item Fiscal Year 2020/21 Current Assessment Street Lighting $672.00 Water 0.00 Bryce Court Pavement Sealing 786.00 Trimming & Pruning 390.00 Capital Reserve / Replacement Parts 7,441.38 Contract Maintenance 14,820.00 Legal 1,000.00 Engineering 850.00 Auditor Controller Charges 20.00 Publishing/Noticing, Misc. 200.00 Annual Costs Total $26,179.38 General Benefit - Collection/(Contribution) (617.50) General Fund - Collection/(Contribution) 0.00 Balance to Levy $25,561.88 Assessment per Parcel $1,503.64 Max Assessment per Parcel $1,503.64 Number of Parcels (EBU) 17 H.15.d Packet Pg. 379 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 20 Zone 7 Tract 18604 – Tesoro/Van Buren Budget Item Fiscal Year 2020/21 Current Assessment Street Lighting $360.00 Water 0.00 Perimeter Wall 600.00 Trimming & Pruning 1,430.00 Capital Reserve / Replacement Parts 446.53 Contract Maintenance 777.00 Legal 1,000.00 Engineering 850.00 Auditor Controller Charges 20.00 Publishing/Noticing, Misc. 200.00 Annual Costs Total $5,683.53 General Benefit - Collection/(Contribution) (32.39) General Fund - Collection/(Contribution) 0.00 Balance to Levy $5,651.14 Assessment per Parcel $332.42 Max Assessment per Parcel $332.42 Number of Parcels (EBU) 17.00 The total approved assessment for Fiscal Year 2020/2021 is $55,652.05 Note: Total may not foot due to rounding. H.15.d Packet Pg. 380 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 21 Section IV. ASSESSMENT DIAGRAMS An Assessment Diagram for the District has been submitted to the Clerk of the City in the format required under the provision of the Act. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of San Bernardino, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. The following pages show the boundaries of each of the Zones in the District. H.15.d Packet Pg. 381 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 22 H.15.d Packet Pg. 382 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 23 H.15.d Packet Pg. 383 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 24 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT ZONE 4 H.15.d Packet Pg. 384 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 25 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT ZONE 5 H.15.d Packet Pg. 385 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 26 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT Zone 6 H.15.d Packet Pg. 386 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 27 CITY OF GRAND TERRACE LANDSCAPE AND LIGHTING ASSESMENT DISTRICT ZONE 7 H.15.d Packet Pg. 387 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) 2020/2021 City of Grand Terrace - L&L AD No. 89-1 Page 28 Section V. ASSESSMENT ROLL The description of each lot or parcel is part of the records of the Assessor of the County of San Bernardino and these records are, by reference, made part of this Report. The proposed assessment and the amount of assessment for Fiscal Year 2020/2021 apportioned to each lot or parcel is shown below. H.15.d Packet Pg. 388 At t a c h m e n t : 4 . F Y 2 0 - 2 1 E n g i n e e r ' s R e p o r t ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE ENGINEERS REPORT FOR LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2020-2021 WHEREAS, the City Council of the City of Grand Terrace, California, (hereinafter referred to as the “City”) pursuant to the provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, did, by previous Resolution, order the preparation of an Engineer's Report (hereinafter referred to as the “Report”) for the annual levy of assessments, consisting of plans and specifications, an estimate of the cost, a diagram of the district, and an assessment relating to what is now known and designated as: CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 (hereinafter referred to as the "District"); and, WHEREAS, there has now been presented to this City Council the Report as required by Article 4 of Chapter 1 of Part 2 of Division 15 of the Streets and Highways Code, and as previously directed by Resolution; and, WHEREAS, this City Council has now carefully examined and reviewed the Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the proposed assessments, on a preliminary basis, have been spread in accordance with the benefits received from the maintenance to be performed, as set forth in said Report. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City does hereby resolve, determine and order as follows: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the Report as presented, consisting of the following: A. Plans and specifications; B. Method of Apportionment; C. Estimate of cost; D. Assessment Diagram of the District; E. Assessment of the estimated cost; H.15.e Packet Pg. 389 At t a c h m e n t : 5 . R e s o l u t i o n - A p p r o v i n g E n g i n e e r ' s R e p o r t [ R e v i s i o n 1 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) is hereby approved on a preliminary basis, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. SECTION 4. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 23rd day of June, 2020. _____________________________ Darcy McNaboe Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra, City Attorney H.15.e Packet Pg. 390 At t a c h m e n t : 5 . R e s o l u t i o n - A p p r o v i n g E n g i n e e r ' s R e p o r t [ R e v i s i o n 1 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) RESOLUTION NO. 2020- ______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JULY 14, 2020, ON LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2020-2021 WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereafter referred to as the “City Council”) desires to levy assessments within LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 (hereafter referred to as the “District”) pursuant to the terms and provisions of the "Landscaping and Street Lighting Act of 1972", being Division 15, Part 2 of the Streets and Highways Code of the State of California (hereafter referred to as the “Act”); and, WHEREAS, at this time, City Council desires to levy the annual assessments for the territory within the District for the next ensuing fiscal year, to provide for the costs and expenses necessary for continual maintenance of improvements within said District; and, WHEREAS, the City Council has, by Resolution, initiated proceedings for the collection of the annual levy within the District in Fiscal Year 2020-2021; and, WHEREAS, at this time there has been presented and preliminarily approved by this City Council, the Engineer's Report (hereafter referred to as the “Engineer’s Report”) as required by law, and this City Council is desirous of proceeding with the proceedings for said annual levy; and, WHEREAS, the City Council has, by Resolution, preliminarily approved the Engineer’s Report as filed or amended. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows: SECTION 1. That the above recitals are all true and correct. PUBLIC INTEREST SECTION 2. Pursuant to the Act (specifically, Streets and Highways Code Section 22624), the City Council hereby finds and declares that the public interest and necessity require the maintenance and servicing of landscaping and public lighting facilities in the District, and contingent upon compliance with, as applicable, the requirements of the Act, Article XIIID of the California Constitution (commonly known as “Proposition 218”) and the Proposition 218 Omnibus Implementation Act (set forth at H.15.f Packet Pg. 391 At t a c h m e n t : 6 . R e s o l u t i o n - I n t e n t i o n ( t o p u b l i s h ) [ R e v i s i o n 2 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) Government Code Sections 53750-53758), the City Council hereby declares its intention to levy and collect proposed assessments within the District for the continual maintenance of certain improvements, all to serve and benefit said District that is comprised of zones located throughout the City of Grand Terrace and said area is shown and delineated on a map as previously approved by this City Council and on file in the Office of the City Clerk, open to public inspection, and herein so referenced and made a part hereof, and proposed changes thereto are set forth in the Report of the Engineer, incorporated herein as a part hereof. REPORT SECTION 3. The City Council hereby refers to the Engineer’s Report, on file with the City Clerk, for a full and detailed description of the District, the improvements, the boundaries of the District and any zones therein, and the proposed assessment upon assessable lots and parcels of land within the District, to pay the costs and expenses associated with the maintenance and operation of lighting, landscaping, and appurtenant facilities and services related thereto. ASSESSMENT SECTION 4. That the public interest and convenience requires, and it is the intention of this City Council to order the annual assessment levy for the District as set forth and described in said Engineer's "Report," and further it is determined to be in the best public interest and convenience to levy and collect the annual assessments to pay the costs and expense of said maintenance and improvement as estimated in said "Report." No assessment increases are proposed for the fiscal year 2020-2021 levy. SECTION 5. In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d), are greater than can conveniently be raised from a single assessment, and, as a result, shall be collected in installments and held in a reserve account, as noted in the Engineer’s Report. DESCRIPTION OF MAINTENANCE SECTION 6. The assessments levied and collected shall be for the maintenance of certain landscaping and street lighting improvements including but not limited to: planting, shrubbery and tree maintenance, light poles, light fixtures and appurtenant facilities as required to provide lighting in public right-of-ways and easements, as set forth in the Engineer's "Report," referenced and so incorporated herein. COUNTY AUDITOR H.15.f Packet Pg. 392 At t a c h m e n t : 6 . R e s o l u t i o n - I n t e n t i o n ( t o p u b l i s h ) [ R e v i s i o n 2 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) SECTION 7. The County Auditor shall enter on the County Assessment Roll the amount of the assessments, and shall collect said assessments at the time and in the same manner as County taxes are collected. After collection by the County, the net amount of the assessments, after the deduction of any compensation due to the County for collection, shall be paid to the Treasurer for purposes of paying for the costs and expenses of said District. SPECIAL FUND SECTION 8. That all monies collected shall be deposited in a special fund known as "SPECIAL FUND”, CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 Payment shall be made out of said fund only for the purpose provided for in this Resolution, and in order to expedite the making of this maintenance and improvement, the City Council may transfer into said funds as it may deem necessary to expedite the proceedings. Any funds shall be repaid out of the proceeds of the assessments provided for in this Resolution. BOUNDARIES OF DISTRICT SECTION 9. Said contemplated maintenance work is, in the opinion of this City Council, of direct benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon a district, which district said City Council hereby declares to be the district benefited by said improvement and maintenance, and to be further assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on a map as approved by this City Council and on file in the Office of the City Clerk, and so designated by the name of the District. NOTICE OF PUBLIC HEARING SECTION 10. NOTICE IS HEREBY GIVEN THAT TUESDAY, JULY 14, 2020, AT THE HOUR OF 6:00 O'CLOCK P.M., IN THE CITY COUNCIL CHAMBERS LOCATED AT 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA, IS THE TIME AND PLACE FIXED BY THIS CITY COUNCIL FOR THE HEARING OF PROTESTS OR OBJECTIONS IN REFERENCE TO THE ANNUAL LEVY OF ASSESSMENTS, TO THE EXTENT OF THE MAINTENANCE, AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION BY THOSE PROPERTY OWNERS AFFECTED HEREBY. ANY H.15.f Packet Pg. 393 At t a c h m e n t : 6 . R e s o l u t i o n - I n t e n t i o n ( t o p u b l i s h ) [ R e v i s i o n 2 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) PERSONS WHO WISH TO OBJECT TO THE PROCEEDINGS SHOULD FILE A WRITTEN PROTEST WITH THE CITY CLERK PRIOR TO THE TIME SET AND SCHEDULED FOR SAID PUBLIC HEARING. SECTION 11. The City Clerk is directed to publish this Resolution of Intention pursuant to Government Code Section 6061, said publication to be completed no later than ten (10) days prior to the date set for the Public Hearing. PROCEEDINGS INQUIRIES SECTION 12. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated: Todd Nakasaki, Management Analyst CITY OF GRAND TERRACE 22795 Barton Road Grand Terrace, California 92313 EFFECTIVE DATE SECTION 13. The City Clerk shall certify to the adoption of this Resolution. SECTION 14. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 23rd day of June, 2020. _____________________________ Darcy McNaboe Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra, City Attorney H.15.f Packet Pg. 394 At t a c h m e n t : 6 . R e s o l u t i o n - I n t e n t i o n ( t o p u b l i s h ) [ R e v i s i o n 2 ] ( 2 0 2 0 - 2 0 2 1 L a n d s c a p e & L i g h t i n g A s s e s s m e n t D i s t r i c t 8 9 - 1 I n t e n t ) AGENDA REPORT MEETING DATE: June 23, 2020 Council Item TITLE: Request County of San Bernardino Board of Supervisors Allocate at Least 10% of Its $38,000,000 in CARES Act Coronavirus Relief Funding to the 24 Local Municipal Governments Within the County on a Per Capita Basis PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REQUESTING THE SAN BERNARDINO COUNTY BOARD OF SUPERVISORS ALLOCATE AT LEAST 10% OF THE $380,000,000 IT RECEIVED IN CARES ACT CORONAVIRUS RELIEF FUNDING TO THE 24 MUNICIPAL GOVERNMENTS WITHIN SAN BERNARDINO COUNTY 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability by commitment to a balanced budget by identifying additional revenue sources and ensure appropriate cost recovery for services. BACKGROUND: On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into place. Included in the CARES Act is the Coronavirus Relief Fund (CRF) that provided $150 billion to states and those local municipalities with populations greater than 500,000 based on a specified formula. On March 27, 2020 President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into place. Included in the CARES Act is the Coronavirus Relief Fund (CRF) that provided $150 billion to states and those local municipalities with populations greater than 500,000 based on a specified formula. The County of San Bernardino’s unincorporated population is approximately 312,000, yet San Bernardino County was eligible to receive $380 million in CARES ACT CRF funding, because the Treasury’s formula counts incorporated and unincorporated population as an eligibility factor in CARES ACT CRF. Cities and Counties with populations less than 500,000 did not receive CARES Act CRF funding. In California only six (6) cities and fifteen (15) counties received funding (Attachment I). The Treasury released guidance for allowable expenditures on April 22, 2020. California H.16 Packet Pg. 395 was allocated $15.3 billion with $8.4 billion going to the State. The remaining funds were to be directly allocated to qualifying counties and cities with a population over 500,000 that submitted a request to the Treasury. On May 4, 2020, and again on May 28, 2020, the Treasury issued an update to its guidelines called CRF Frequently Asked Questions, which clarified eligible uses for CRF. The guidelines made it very clear, counties can transfer funds to cities to address eligible COVID-19- related expenses, as long as the cities' expenditures comply with the CARES Act CRF criteria, which require, among other things, that the expenditures be necessary due to the public health emergency with respect to COVID-19. In addition, funds must be expended by December 30, 2020 or returned to the Treasury. DISCUSSION: Over the past three (3) months, cities in the County of San Bernardino worked together to slow the spread of COVID-19 throughout the County. While some communities were hit harder than others, COVID-19 is no respecter of municipal or county boundary lines. In a consorted effort, policymakers and administrators band together to develop regional strategies and networks to combat COVID-19. The County Public Health Department continues to provide cities with valuable information to allow managers to make important local decisions. Our regional Office of Emergency Services (OES) implemented regional strategies to ensure emergency responses were conducted in the most efficient and safest manner possible. Yet, as the economy began to shut down, each city had to address its own unique fiscal circumstances. The canvas of San Bernardino County is so diverse that commerce to tourism was significantly impacted by COVID-19, leaving cities with significant revenue losses and increased demand for public safety and public health services. $380 million was allocated to the County of San Bernardino based on its unincorporated and incorporated population and while a significant portion of the $380 million received by the County will support countywide public health needs, cities are also facing the following eligible COVID-19 related expenses: Law Enforcement for COVID-19 Economic Support Initiatives Telework Enhancements/Infrastructure Sanitation Compliance Facility Enhancements Social Distancing The May 28, 2020 CRF guidance memo for frequently asked questions is significant. While the memo answers questions and lays out the following eligible categories, it also clearly states, “The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature H.16 Packet Pg. 396 of this program, a State, Territorial, Local or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise”. (Attachment II). The Treasury Guidelines for CRF is significant as public safety costs represent 35-70% of local governments general fund budgets, and without question is a COVID-19 eligible expense. Therefore, staff is recommending the City Council of the City of Grand Terrace, via resolution, request the Board of Supervisors for the County of San Bernardino establish a fund in the amount of no less than 10% of the $380 million it received in CARES Act CRF and distribute those funds to cities within San Bernardino County on a per capita basis for eligible COVID-19 related expenses. The transfer of CRF from a county to a state is allowable; the County of San Diego recently allocated $25 million in CARES Act CRF to seventeen (17) local cities (Attachment III). The Fund would establish appropriations of $38 million to the twenty-four (24) local cities for CARES Act CRF related expenses, each municipal government would need to execute an agreement with the County of San Bernardino and demonstrate how it will spend its allocation before the funds are released. A city would assume full responsibility, if it is determined that expenditures supported by CARES Act CRF was ineligible. A city would also agree to submit any documentation as required by the County of San Bernardino. The resolution, if approved by the City Council, would respectfully request the County Board of Supervisors take this action as it is consistent with San Bernardino’s Countywide Vision “to envision a model community which is governed in an open and ethical manner, where great ideas are replicated and bought to scale, and all sectors work collaboratively to reach shared goals”. The resolution, if adopted by the City Council, would respectfully request the County Board of Supervisors take this action as it is consistent with San Bernardino’s Countywide Vision “to envision a model community which is governed in an open and ethical manner, where great ideas are replicated and brought to scale, and all sectors work collaboratively to reach shared goals”. FISCAL IMPACT: If San Bernardino County established a COVID-19 CRF for local municipalities in the amount of $38 million, the per capita rate for each resident of the County would be $17.50. The City of Grand Terrace would receive roughly $225,000. ATTACHMENTS: • 2020-xx - CARES Act Funding Request from SBC Board of Supervisors (DOCX) • Attachment I - How CARES Act distributes to state and local governments (PDF) • Attachment II - Coronavirus-Relief-Fund-Frequently-Asked-Questions 528 (PDF) H.16 Packet Pg. 397 • Attachment III - san diego cares act funding story (PDF) APPROVALS: G. Harold Duffey Completed 06/18/2020 10:32 AM City Attorney Completed 06/18/2020 11:05 AM Finance Completed 06/18/2020 3:30 PM City Manager Completed 06/18/2020 4:10 PM City Council Pending 06/23/2020 6:00 PM H.16 Packet Pg. 398 CC Reso No. 2020-xx Page 1 of 2 June 23, 2020 RESOLUTION NO. 2020-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REQUESTING THE SAN BERNARDINO COUNTY BOARD OF SUPERVISORS ALLOCATE AT LEAST 10% OF THE $380,000,000 IT RECEIVED IN CARES ACT CORONAVIRUS RELIEF FUND TO THE 24 MUNICIPAL GOVERNMENTS WITHIN SAN BERNARDINO COUNTY WHEREAS, on March 27, 2020 President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into place. Included in the CARES Act is the Coronavirus Relief Fund (CRF) that provided $150 Billion to states and those local municipalities with populations greater than 500,000 based on a specified formula. WHEREAS, California was allocated $15.3 Billion with $8.4 Billion going to the State. The remaining funds were to be directly allocated to qualifying counties and cities, with a population over 500,000 that submitted a request to the U.S. Treasury. WHEREAS, the County of San Bernardino received $380 Million because the eligibility formula of the U.S. Treasury, counts incorporated and unincorporated populations for County eligibility. WHEREAS, cities and counties with populations fewer than 500,000 did not receive CARES Act CRF funding. In California only six (6) cities and fifteen (15) counties received CARES Act CRF funding and none of the twenty-four (24) cities in San Bernardino County received CARES Act CRF funding. WHEREAS, over the past three (3) months cities in the County of San Bernardino worked together with the County of San Bernardino to slow the spread of COVID-19 throughout the county. While some communities were hit harder than others, COVID-19 is no respecter of municipal or county boundary lines. WHEREAS, policymakers and administrators from local jurisdictions and regional authorities like the County Public Health Department, San Bernardino Association of Governments (SANBAG), Office of Emergency Services (OES) band together to develop regional strategies and networks to combat COVID-19. WHEREAS, when the economy began to shut down, each city had to address its own unique fiscal circumstances. COVID-19 increased demand for public health and public safety services, while decimating the local economy, leading to significant revenue losses. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER H.16.a Packet Pg. 399 At t a c h m e n t : 2 0 2 0 - x x - C A R E S A c t F u n d i n g R e q u e s t f r o m S B C B o a r d o f S u p e r v i s o r s [ R e v i s i o n 1 ] ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o CC Reso No. 2020-xx Page 2 of 2 June 23, 2020 AS FOLLOWS: Section 1. On May 4, 2020 and again on May 28, 2020, the U.S. Treasury issued an update to its guidelines called CRF Frequently Asked Questions, which states that as a matter of administrative convenience in light of the emergency nature of this program, a State, Territorial, Local or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Therefore, the statement within the U.S. Treasury’s Guidelines for CRF makes some or all public safety costs a COVID-19 eligible expense. Section 2. The City urges San Bernardino County to follow the lead of the County of San Diego, which recently allocated $25 Million in CARES ACT CRF to seventeen (17) local cities within San Diego County to defray COVID-19 eligible expenses such as Law Enforcement for COVID-19; Economic Support Initiatives; Telework Enhancements/Infrastructure; Sanitation Compliance; Social Distancing and Facility Enhancements. Section 3. The City Council of the City of Grand Terrace respectfully requests the Board of Supervisors of the County of San Bernardino establish a fund in the amount of no less than $38 Million to help cities defray COVID-19 related expenses and distribute those funds to cities within San Bernardino County on a per capita basis for eligible COVID-19 related expenses. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the _____ day of _____________ 2020. ___________________________ Darcy McNaboe, Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian Guerra City Attorney H.16.a Packet Pg. 400 At t a c h m e n t : 2 0 2 0 - x x - C A R E S A c t F u n d i n g R e q u e s t f r o m S B C B o a r d o f S u p e r v i s o r s [ R e v i s i o n 1 ] ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o 1 Eligibility of Local Governments A unit of local government eligible for receipt of direct payment includes a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level with a population that exceeds 500,000. Accordingly, a local government must have a population in excess of 500,000 to provide a certification for payment. Overlapping Jurisdictions. Some local governments (for example, a city) may be entirely within the boundaries of a larger local government (for example, a county or parish). The larger local government may include, for purposes of determining whether it meets the 500,000 threshold for eligibility, the population of the smaller, constituent local government. The population used to calculate the larger local government’s payment amount will depend on whether any smaller, constituent local government that is eligible to receive a payment provides a certification for payment: • If the smaller, constituent local government does not provide a certification for payment, the entire population of the larger local government (including the population of the smaller local government) will be used for purposes of calculating its payment amount. • If the smaller, constituent local government provides a certification for payment, the population of the smaller local government will be subtracted from the population of the larger local government for purposes of calculating its payment amount. The following examples illustrate these points. • County A has a total population of 550,000, comprised of 75,000 in City B (the incorporated part of the county within the borders of County A) and 475,000 in the unincorporated part of the county. o County A is eligible to receive a payment, because its total population (including both the incorporated City B and the unincorporated part of the county) is greater than 500,000. o County A’s payment amount will be calculated based on a population of 550,000. o City B is not eligible to receive a payment because its population is less than 500,000. • County C has a total population of 900,000, comprised of 750,000 in City D (the incorporated part of the county) and 150,000 in the unincorporated part of the county. o Both County C and City D are eligible to provide a certification, because their total respective populations exceed 500,000. o If County C provides a certification but City D does not, County C’s payment amount will be based on a population of 900,000. o If both County C and City D provide certifications, County C’s payment amount will be calculated based on a population of 150,000 (total population less the population of City C). City D’s payment amount will be calculated based on its population of 750,000. H.16.b Packet Pg. 401 At t a c h m e n t : A t t a c h m e n t I - H o w C A R E S A c t d i s t r i b u t e s t o s t a t e a n d l o c a l g o v e r n m e n t s ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 2 Census Data The CARES Act directs Treasury to use U.S. Census Bureau data for the most recent year for which data are available for population calculations under the CARES Act. States and Local Governments Treasury will use data from the U.S. Census Bureau’s Population Estimates Program for determining the populations of States and local governments: • Treasury will use 2019 data from the 2019 Vintage for States and county-level units of local governments. The 2019 Vintage data are available at https://www.census.gov/data/tables/time- series/demo/popest/2010s-state-total.html and https://www.census.gov/data/tables/time- series/demo/popest/2010s-counties-total.html. • Treasury will use 2019 data from the 2019 Vintage provided by the U.S. Census Bureau for units of local government below the county level. This data was provided to Treasury in advance of publication to implement this title of the CARES Act. The table below includes the population for each state in 2019, the state’s share of the total population of the 50 states, and the state’s allocation. State State Population, 2019 State Share of Total Population Maximum State Allocation Alabama 4,903,185 0.0150 $1,901,262,159.90 Alaska 731,545 0.0022 $1,250,000,000.00 Arizona 7,278,717 0.0222 $2,822,399,971.50 Arkansas 3,017,804 0.0092 $1,250,000,000.00 California 39,512,223 0.1206 $15,321,284,928.40 Colorado 5,758,736 0.0176 $2,233,011,164.20 Connecticut 3,565,287 0.0109 $1,382,477,973.40 Delaware 973,764 0.0030 $1,250,000,000.00 Florida 21,477,737 0.0656 $8,328,221,072.10 Georgia 10,617,423 0.0324 $4,117,018,751.10 Hawaii 1,415,872 0.0043 $1,250,000,000.00 Idaho 1,787,065 0.0055 $1,250,000,000.00 Illinois 12,671,821 0.0387 $4,913,633,437.00 Indiana 6,732,219 0.0206 $2,610,489,556.60 Iowa 3,155,070 0.0096 $1,250,000,000.00 Kansas 2,913,314 0.0089 $1,250,000,000.00 Kentucky 4,467,673 0.0136 $1,732,387,747.50 Louisiana 4,648,794 0.0142 $1,802,619,342.60 Maine 1,344,212 0.0041 $1,250,000,000.00 Maryland 6,045,680 0.0185 $2,344,276,753.70 Massachusetts 6,892,503 0.0210 $2,672,641,383.20 Michigan 9,986,857 0.0305 $3,872,510,074.60 Minnesota 5,639,632 0.0172 $2,186,827,320.80 Mississippi 2,976,149 0.0091 $1,250,000,000.00 H.16.b Packet Pg. 402 At t a c h m e n t : A t t a c h m e n t I - H o w C A R E S A c t d i s t r i b u t e s t o s t a t e a n d l o c a l g o v e r n m e n t s ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 3 Missouri 6,137,428 0.0187 $2,379,853,017.00 Montana 1,068,778 0.0033 $1,250,000,000.00 Nebraska 1,934,408 0.0059 $1,250,000,000.00 Nevada 3,080,156 0.0094 $1,250,000,000.00 New Hampshire 1,359,711 0.0042 $1,250,000,000.00 New Jersey 8,882,190 0.0271 $3,444,163,690.30 New Mexico 2,096,829 0.0064 $1,250,000,000.00 New York 19,453,561 0.0594 $7,543,325,288.30 North Carolina 10,488,084 0.0320 $4,066,866,177.50 North Dakota 762,062 0.0023 $1,250,000,000.00 Ohio 11,689,100 0.0357 $4,532,572,911.90 Oklahoma 3,956,971 0.0121 $1,534,357,612.40 Oregon 4,217,737 0.0129 $1,635,472,403.80 Pennsylvania 12,801,989 0.0391 $4,964,107,464.10 Rhode Island 1,059,361 0.0032 $1,250,000,000.00 South Carolina 5,148,714 0.0157 $1,996,468,642.30 South Dakota 884,659 0.0027 $1,250,000,000.00 Tennessee 6,829,174 0.0209 $2,648,084,889.60 Texas 28,995,881 0.0885 $11,243,461,410.70 Utah 3,205,958 0.0098 $1,250,000,000.00 Vermont 623,989 0.0019 $1,250,000,000.00 Virginia 8,535,519 0.0261 $3,309,738,321.00 Washington 7,614,893 0.0232 $2,952,755,792.90 West Virginia 1,792,147 0.0055 $1,250,000,000.00 Wisconsin 5,822,434 0.0178 $2,257,710,741.60 Wyoming 578,759 0.0018 $1,250,000,000.00 Total 327,533,774 1.0000 $139,000,000,000.00 District of Columbia and U.S. Territories Treasury will use 2019 data from the 2019 Vintage from the U.S. Census Bureau’s Population Estimates Program for determining the populations of DC and Puerto Rico. The 2019 Vintage data are available at https://www.census.gov/data/tables/time-series/demo/popest/2010s-state-total.html. Treasury will use data from the U.S. Census Bureau’s International Programs for determining the populations of USVI, Guam, CNMI, and American Samoa. The International Programs updated its population estimates and future population projections for these U.S. Territories in August 2017. Treasury will use the 2019 population projections from International Programs’ August 2017 population estimates and projections for USVI, Guam, CNMI, and American Samoa. These data are available at https://www.census.gov/data- tools/demo/idb/region.php?T=6&RT=0&A=separate&Y=2019&C=AQ,GQ,CQ,VQ&R=). The table below includes the population of the District of Columbia and each territory, the share of the total population of the District of Columbia and the territories, and the allocation for the District of Columbia and each territory. H.16.b Packet Pg. 403 At t a c h m e n t : A t t a c h m e n t I - H o w C A R E S A c t d i s t r i b u t e s t o s t a t e a n d l o c a l g o v e r n m e n t s ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 4 Population, 2019 Share of Total Population Allocation District of Columbia 705,749 0.1650 $495,138,063.60 Puerto Rico 3,193,694 0.7469 $2,240,625,863.80 American Samoa 50,135 0.0117 $35,173,619.50 Guam 168,147 0.0393 $117,968,257.80 Northern Mariana Islands 51,718 0.0121 $36,284,217.70 Virgin Islands 106,631 0.0249 $74,809,977.60 Total 4,276,074 1.0000 $3,000,000,000.00 H.16.b Packet Pg. 404 At t a c h m e n t : A t t a c h m e n t I - H o w C A R E S A c t d i s t r i b u t e s t o s t a t e a n d l o c a l g o v e r n m e n t s ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 1 Coronavirus Relief Fund Frequently Asked Questions Updated as of May 28, 2020 The following answers to frequently asked questions supplement Treasury’s Coronavirus Relief Fund (“Fund”) Guidance for State, Territorial, Local, and Tribal Governments, dated April 22, 2020, (“Guidance”).1 Amounts paid from the Fund are subject to the restrictions outlined in the Guidance and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Eligible Expenditures Are governments required to submit proposed expenditures to Treasury for approval? No. Governments are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19 and do not need to submit any proposed expenditures to Treasury. The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the “substantially dedicated” condition? The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a “substantially different use” for purposes of the Fund eligibility? Costs incurred for a “substantially different use” include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty’s ordinary responsibilities. Note that a public function does not become a “substantially different use” merely because it is provided from a different location or through a different manner. For example, although developing online instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction. 1 The Guidance is available at https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf. H.16.c Packet Pg. 405 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 2 May a State receiving a payment transfer funds to a local government? Yes, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if they have not been used in a manner consistent with section 601(d) of the Social Security Act. May a unit of local government receiving a Fund payment transfer funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure. Is a Fund payment recipient required to transfer funds to a smaller, constituent unit of government within its borders? No. For example, a county recipient is not required to transfer funds to smaller cities within the county’s borders. Are recipients required to use other federal funds or seek reimbursement under other federal programs before using Fund payments to satisfy eligible expenses? No. Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source of funding of last resort. However, as noted below, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. Are there prohibitions on combining a transaction supported with Fund payments with other CARES Act funding or COVID-19 relief Federal funding? Recipients will need to consider the applicable restrictions and limitations of such other sources of funding. In addition, expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds, are not eligible uses of Fund payments. Are States permitted to use Fund payments to support state unemployment insurance funds generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State’s obligation to the unemployment insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related to the public health emergency from causing their state unemployment insurance funds to become insolvent. H.16.c Packet Pg. 406 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 3 Are recipients permitted to use Fund payments to pay for unemployment insurance costs incurred by the recipient as an employer? Yes, Fund payments may be used for unemployment insurance costs incurred by the recipient as an employer (for example, as a reimbursing employer) related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. The Guidance states that the Fund may support a “broad range of uses” including payroll expenses for several classes of employees whose services are “substantially dedicated to mitigating or responding to the COVID-19 public health emergency.” What are some examples of types of covered employees? The Guidance provides examples of broad classes of employees whose payroll expenses would be eligible expenses under the Fund. These classes of employees include public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19-related school closures. Please see the Guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020. In some cases, first responders and critical health care workers that contract COVID-19 are eligible for workers’ compensation coverage. Is the cost of this expanded workers compensation coverage eligible? Increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning March 1, 2020, and ending December 30, 2020, is an eligible expense. If a recipient would have decommissioned equipment or not renewed a lease on particular office space or equipment but decides to continue to use the equipment or to renew the lease in order to respond to the public health emergency, are the costs associated with continuing to operate the equipment or the ongoing lease payments eligible expenses? Yes. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance, such expenses would be eligible. May recipients provide stipends to employees for eligible expenses (for example, a stipend to employees to improve telework capabilities) rather than require employees to incur the eligible cost and submit for reimbursement? Expenditures paid for with payments from the Fund must be limited to those that are necessary due to the public health emergency. As such, unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses. H.16.c Packet Pg. 407 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 4 May Fund payments be used for COVID-19 public health emergency recovery planning? Yes. Expenses associated with conducting a recovery planning project or operating a recovery coordination office would be eligible, if the expenses otherwise meet the criteria set forth in section 601(d) of the Social Security Act outlined in the Guidance. Are expenses associated with contact tracing eligible? Yes, expenses associated with contract tracing are eligible. To what extent may a government use Fund payments to support the operations of private hospitals? Governments may use Fund payments to support public or private hospitals to the extent that the costs are necessary expenditures incurred due to the COVID-19 public health emergency, but the form such assistance would take may differ. In particular, financial assistance to private hospitals could take the form of a grant or a short-term loan. May payments from the Fund be used to assist individuals with enrolling in a government benefit program for those who have been laid off due to COVID-19 and thereby lost health insurance? Yes. To the extent that the relevant government official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible. May recipients use Fund payments to facilitate livestock depopulation incurred by producers due to supply chain disruptions? Yes, to the extent these efforts are deemed necessary for public health reasons or as a form of economic support as a result of the COVID-19 health emergency. Would providing a consumer grant program to prevent eviction and assist in preventing homelessness be considered an eligible expense? Yes, assuming that the recipient considers the grants to be a necessary expense incurred due to the COVID-19 public health emergency and the grants meet the other requirements for the use of Fund payments under section 601(d) of the Social Security Act outlined in the Guidance. As a general matter, providing assistance to recipients to enable them to meet property tax requirements would not be an eligible use of funds, but exceptions may be made in the case of assistance designed to prevent foreclosures. May recipients create a “payroll support program” for public employees? Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May recipients use Fund payments to cover employment and training programs for employees that have been furloughed due to the public health emergency? Yes, this would be an eligible expense if the government determined that the costs of such employment and training programs would be necessary due to the public health emergency. H.16.c Packet Pg. 408 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 5 May recipients use Fund payments to provide emergency financial assistance to individuals and families directly impacted by a loss of income due to the COVID-19 public health emergency? Yes, if a government determines such assistance to be a necessary expenditure. Such assistance could include, for example, a program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. Such assistance should be structured in a manner to ensure as much as possible, within the realm of what is administratively feasible, that such assistance is necessary. The Guidance provides that eligible expenditures may include expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. What is meant by a “small business,” and is the Guidance intended to refer only to expenditures to cover administrative expenses of such a grant program? Governments have discretion to determine what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. The amount of a grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure under section 601(d) of the Social Security Act, as outlined in the Guidance. The Guidance provides that expenses associated with the provision of economic support in connection with the public health emergency, such as expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures, would constitute eligible expenditures of Fund payments. Would such expenditures be eligible in the absence of a stay-at-home order? Fund payments may be used for economic support in the absence of a stay-at-home order if such expenditures are determined by the government to be necessary. This may include, for example, a grant program to benefit small businesses that close voluntarily to promote social distancing measures or that are affected by decreased customer demand as a result of the COVID-19 public health emergency. May Fund payments be used to assist impacted property owners with the payment of their property taxes? Fund payments may not be used for government revenue replacement, including the provision of assistance to meet tax obligations. May Fund payments be used to replace foregone utility fees? If not, can Fund payments be used as a direct subsidy payment to all utility account holders? Fund payments may not be used for government revenue replacement, including the replacement of unpaid utility fees. Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. H.16.c Packet Pg. 409 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 6 Could Fund payments be used for capital improvement projects that broadly provide potential economic development in a community? In general, no. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then Fund payments may not be used for such projects. However, Fund payments may be used for the expenses of, for example, establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation measures, including related construction costs. The Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific definition of “hazard pay”? Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. The Guidance provides that ineligible expenditures include “[p]ayroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency.” Is this intended to relate only to public employees? Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to pay for payroll or benefit expenses of private employees and any financial assistance (such as grants or short-term loans) to private employers are not subject to the restriction that the private employers’ employees must be substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May counties pre-pay with CARES Act funds for expenses such as a one or two-year facility lease, such as to house staff hired in response to COVID-19? A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedures. Must a stay-at-home order or other public health mandate be in effect in order for a government to provide assistance to small businesses using payments from the Fund? No. The Guidance provides, as an example of an eligible use of payments from the Fund, expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. Such assistance may be provided using amounts received from the Fund in the absence of a requirement to close businesses if the relevant government determines that such expenditures are necessary in response to the public health emergency. H.16.c Packet Pg. 410 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 7 Should States receiving a payment transfer funds to local governments that did not receive payments directly from Treasury? Yes, provided that the transferred funds are used by the local government for eligible expenditures under the statute. To facilitate prompt distribution of Title V funds, the CARES Act authorized Treasury to make direct payments to local governments with populations in excess of 500,000, in amounts equal to 45% of the local government’s per capita share of the statewide allocation. This statutory structure was based on a recognition that it is more administratively feasible to rely on States, rather than the federal government, to manage the transfer of funds to smaller local governments. Consistent with the needs of all local governments for funding to address the public health emergency, States should transfer funds to local governments with populations of 500,000 or less, using as a benchmark the per capita allocation formula that governs payments to larger local governments. This approach will ensure equitable treatment among local governments of all sizes. For example, a State received the minimum $1.25 billion allocation and had one county with a population over 500,000 that received $250 million directly. The State should distribute 45 percent of the $1 billion it received, or $450 million, to local governments within the State with a population of 500,000 or less. May a State impose restrictions on transfers of funds to local governments? Yes, to the extent that the restrictions facilitate the State’s compliance with the requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance and other applicable requirements such as the Single Audit Act, discussed below. Other restrictions are not permissible. If a recipient must issue tax anticipation notes (TANs) to make up for tax due date deferrals or revenue shortfalls, are the expenses associated with the issuance eligible uses of Fund payments? If a government determines that the issuance of TANs is necessary due to the COVID-19 public health emergency, the government may expend payments from the Fund on the accrued interest expense on TANs and unbudgeted administrative and transactional costs, such as necessary payments to advisors and underwriters, associated with the issuance of the TANs. May recipients use Fund payments to expand rural broadband capacity to assist with distance learning and telework? Such expenditures would only be permissible if they are necessary for the public health emergency. The cost of projects that would not be expected to increase capacity to a significant extent until the need for distance learning and telework have passed due to this public health emergency would not be necessary due to the public health emergency and thus would not be eligible uses of Fund payments. Are costs associated with increased solid waste capacity an eligible use of payments from the Fund? Yes, costs to address increase in solid waste as a result of the public health emergency, such as relates to the disposal of used personal protective equipment, would be an eligible expenditure. May payments from the Fund be used to cover across-the-board hazard pay for employees working during a state of emergency? No. The Guidance says that funding may be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Hazard pay is a form of payroll expense and is subject to this limitation, so Fund payments may only be used to cover hazard pay for such individuals. H.16.c Packet Pg. 411 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 8 May Fund payments be used for expenditures related to the administration of Fund payments by a State, territorial, local, or Tribal government? Yes, if the administrative expenses represent an increase over previously budgeted amounts and are limited to what is necessary. For example, a State may expend Fund payments on necessary administrative expenses incurred with respect to a new grant program established to disburse amounts received from the Fund. May recipients use Fund payments to provide loans? Yes, if the loans otherwise qualify as eligible expenditures under section 601(d) of the Social Security Act as implemented by the Guidance. Any amounts repaid by the borrower before December 30, 2020, must be either returned to Treasury upon receipt by the unit of government providing the loan or used for another expense that qualifies as an eligible expenditure under section 601(d) of the Social Security Act. Any amounts not repaid by the borrower until after December 30, 2020, must be returned to Treasury upon receipt by the unit of government lending the funds. May Fund payments be used for expenditures necessary to prepare for a future COVID-19 outbreak? Fund payments may be used only for expenditures necessary to address the current COVID-19 public health emergency. For example, a State may spend Fund payments to create a reserve of personal protective equipment or develop increased intensive care unit capacity to support regions in its jurisdiction not yet affected, but likely to be impacted by the current COVID-19 pandemic. Questions Related to Administration of Fund Payments Do governments have to return unspent funds to Treasury? Yes. Section 601(f)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, provides for recoupment by the Department of the Treasury of amounts received from the Fund that have not been used in a manner consistent with section 601(d) of the Social Security Act. If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury. What records must be kept by governments receiving payment? A government should keep records sufficient to demonstrate that the amount of Fund payments to the government has been used in accordance with section 601(d) of the Social Security Act. May recipients deposit Fund payments into interest bearing accounts? Yes, provided that if recipients separately invest amounts received from the Fund, they must use the interest earned or other proceeds of these investments only to cover expenditures incurred in accordance with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government deposits Fund payments in a government’s general account, it may use those funds to meet immediate cash management needs provided that the full amount of the payment is used to cover necessary expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as amended. May governments retain assets purchased with payments from the Fund? Yes, if the purchase of the asset was consistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Security Act. H.16.c Packet Pg. 412 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 9 What rules apply to the proceeds of disposition or sale of assets acquired using payments from the Fund? If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided by section 601(d) of the Social Security Act. Are Fund payments to State, territorial, local, and tribal governments considered grants? No. Fund payments made by Treasury to State, territorial, local, and Tribal governments are not considered to be grants but are “other financial assistance” under 2 C.F.R. § 200.40. Are Fund payments considered federal financial assistance for purposes of the Single Audit Act? Yes, Fund payments are considered to be federal financial assistance subject to the Single Audit Act (31 U.S.C. §§ 7501-7507) and the related provisions of the Uniform Guidance, 2 C.F.R. § 200.303 regarding internal controls, §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. Are Fund payments subject to other requirements of the Uniform Guidance? Fund payments are subject to the following requirements in the Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R. § 200.303 regarding internal controls, 2 C.F.R. §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. Is there a Catalog of Federal Domestic Assistance (CFDA) number assigned to the Fund? Yes. The CFDA number assigned to the Fund is 21.019, pending completion of registration. If a State transfers Fund payments to its political subdivisions, would the transferred funds count toward the subrecipients’ total funding received from the federal government for purposes of the Single Audit Act? Yes. The Fund payments to subrecipients would count toward the threshold of the Single Audit Act and 2 C.F.R. part 200, subpart F re: audit requirements. Subrecipients are subject to a single audit or program-specific audit pursuant to 2 C.F.R. § 200.501(a) when the subrecipients spend $750,000 or more in federal awards during their fiscal year. Are recipients permitted to use payments from the Fund to cover the expenses of an audit conducted under the Single Audit Act? Yes, such expenses would be eligible expenditures, subject to the limitations set forth in 2 C.F.R. § 200.425. If a government has transferred funds to another entity, from which entity would the Treasury Department seek to recoup the funds if they have not been used in a manner consistent with section 601(d) of the Social Security Act? The Treasury Department would seek to recoup the funds from the government that received the payment directly from the Treasury Department. State, territorial, local, and Tribal governments receiving funds from Treasury should ensure that funds transferred to other entities, whether pursuant to a grant program H.16.c Packet Pg. 413 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 10 or otherwise, are used in accordance with section 601(d) of the Social Security Act as implemented in the Guidance. H.16.c Packet Pg. 414 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 1 Coronavirus Relief Fund Frequently Asked Questions Updated as of May 4, 2020 The following answers to frequently asked questions supplement Treasury’s Coronavirus Relief Fund (“Fund”) Guidance for State, Territorial, Local, and Tribal Governments, dated April 22, 2020, (“Guidance”).1 Amounts paid from the Fund are subject to the restrictions outlined in the Guidance and set forth in section 601(d) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Eligible Expenditures Are governments required to submit proposed expenditures to Treasury for approval? No. Governments are responsible for making determinations as to what expenditures are necessary due to the public health emergency with respect to COVID-19 and do not need to submit any proposed expenditures to Treasury. The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the “substantially dedicated” condition? The Fund is designed to provide ready funding to address unforeseen financial needs and risks created by the COVID-19 public health emergency. For this reason, and as a matter of administrative convenience in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency, unless the chief executive (or equivalent) of the relevant government determines that specific circumstances indicate otherwise. The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a “substantially different use” for purposes of the Fund eligibility? Costs incurred for a “substantially different use” include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty’s ordinary responsibilities. Note that a public function does not become a “substantially different use” merely because it is provided from a different location or through a different manner. For example, although developing online 1 The Guidance is available at https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf. H.16.c Packet Pg. 415 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 2 instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction. May a State receiving a payment transfer funds to a local government? Yes, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act. Such funds would be subject to recoupment by the Treasury Department if they have not been used in a manner consistent with section 601(d) of the Social Security Act. May a unit of local government receiving a Fund payment transfer funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure. Is a Fund payment recipient required to transfer funds to a smaller, constituent unit of government within its borders? No. For example, a county recipient is not required to transfer funds to smaller cities within the county’s borders. Are recipients required to use other federal funds or seek reimbursement under other federal programs before using Fund payments to satisfy eligible expenses? No. Recipients may use Fund payments for any expenses eligible under section 601(d) of the Social Security Act outlined in the Guidance. Fund payments are not required to be used as the source of funding of last resort. However, as noted below, recipients may not use payments from the Fund to cover expenditures for which they will receive reimbursement. Are there prohibitions on combining a transaction supported with Fund payments with other CARES Act funding or COVID-19 relief Federal funding? Recipients will need to consider the applicable restrictions and limitations of such other sources of funding. In addition, expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds, are not eligible uses of Fund payments. Are States permitted to use Fund payments to support state unemployment insurance funds generally? To the extent that the costs incurred by a state unemployment insurance fund are incurred due to the COVID-19 public health emergency, a State may use Fund payments to make payments to its respective state unemployment insurance fund, separate and apart from such State’s obligation to the unemployment insurance fund as an employer. This will permit States to use Fund payments to prevent expenses related to the public health emergency from causing their state unemployment insurance funds to become insolvent. H.16.c Packet Pg. 416 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 3 Are recipients permitted to use Fund payments to pay for unemployment insurance costs incurred by the recipient as an employer? Yes, Fund payments may be used for unemployment insurance costs incurred by the recipient as an employer (for example, as a reimbursing employer) related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. The Guidance states that the Fund may support a “broad range of uses” including payroll expenses for several classes of employees whose services are “substantially dedicated to mitigating or responding to the COVID-19 public health emergency.” What are some examples of types of covered employees? The Guidance provides examples of broad classes of employees whose payroll expenses would be eligible expenses under the Fund. These classes of employees include public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19-related school closures. Please see the Guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020. In some cases, first responders and critical health care workers that contract COVID-19 are eligible for workers’ compensation coverage. Is the cost of this expanded workers compensation coverage eligible? Increased workers compensation cost to the government due to the COVID-19 public health emergency incurred during the period beginning March 1, 2020, and ending December 30, 2020, is an eligible expense. If a recipient would have decommissioned equipment or not renewed a lease on particular office space or equipment but decides to continue to use the equipment or to renew the lease in order to respond to the public health emergency, are the costs associated with continuing to operate the equipment or the ongoing lease payments eligible expenses? Yes. To the extent the expenses were previously unbudgeted and are otherwise consistent with section 601(d) of the Social Security Act outlined in the Guidance, such expenses would be eligible. May recipients provide stipends to employees for eligible expenses (for example, a stipend to employees to improve telework capabilities) rather than require employees to incur the eligible cost and submit for reimbursement? Expenditures paid for with payments from the Fund must be limited to those that are necessary due to the public health emergency. As such, unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses. H.16.c Packet Pg. 417 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 4 May Fund payments be used for COVID-19 public health emergency recovery planning? Yes. Expenses associated with conducting a recovery planning project or operating a recovery coordination office would be eligible, if the expenses otherwise meet the criteria set forth in section 601(d) of the Social Security Act outlined in the Guidance. Are expenses associated with contact tracing eligible? Yes, expenses associated with contract tracing are eligible. To what extent may a government use Fund payments to support the operations of private hospitals? Governments may use Fund payments to support public or private hospitals to the extent that the costs are necessary expenditures incurred due to the COVID-19 public health emergency, but the form such assistance would take may differ. In particular, financial assistance to private hospitals could take the form of a grant or a short-term loan. May payments from the Fund be used to assist individuals with enrolling in a government benefit program for those who have been laid off due to COVID-19 and thereby lost health insurance? Yes. To the extent that the relevant government official determines that these expenses are necessary and they meet the other requirements set forth in section 601(d) of the Social Security Act outlined in the Guidance, these expenses are eligible. May recipients use Fund payments to facilitate livestock depopulation incurred by producers due to supply chain disruptions? Yes, to the extent these efforts are deemed necessary for public health reasons or as a form of economic support as a result of the COVID-19 health emergency. Would providing a consumer grant program to prevent eviction and assist in preventing homelessness be considered an eligible expense? Yes, assuming that the recipient considers the grants to be a necessary expense incurred due to the COVID-19 public health emergency and the grants meet the other requirements for the use of Fund payments under section 601(d) of the Social Security Act outlined in the Guidance. As a general matter, providing assistance to recipients to enable them to meet property tax requirements would not be an eligible use of funds, but exceptions may be made in the case of assistance designed to prevent foreclosures. May recipients create a “payroll support program” for public employees? Use of payments from the Fund to cover payroll or benefits expenses of public employees are limited to those employees whose work duties are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May recipients use Fund payments to cover employment and training programs for employees that have been furloughed due to the public health emergency? Yes, this would be an eligible expense if the government determined that the costs of such employment and training programs would be necessary due to the public health emergency. H.16.c Packet Pg. 418 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 5 May recipients use Fund payments to provide emergency financial assistance to individuals and families directly impacted by a loss of income due to the COVID-19 public health emergency? Yes, if a government determines such assistance to be a necessary expenditure. Such assistance could include, for example, a program to assist individuals with payment of overdue rent or mortgage payments to avoid eviction or foreclosure or unforeseen financial costs for funerals and other emergency individual needs. Such assistance should be structured in a manner to ensure as much as possible, within the realm of what is administratively feasible, that such assistance is necessary. The Guidance provides that eligible expenditures may include expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. What is meant by a “small business,” and is the Guidance intended to refer only to expenditures to cover administrative expenses of such a grant program? Governments have discretion to determine what payments are necessary. A program that is aimed at assisting small businesses with the costs of business interruption caused by required closures should be tailored to assist those businesses in need of such assistance. The amount of a grant to a small business to reimburse the costs of business interruption caused by required closures would also be an eligible expenditure under section 601(d) of the Social Security Act, as outlined in the Guidance. The Guidance provides that expenses associated with the provision of economic support in connection with the public health emergency, such as expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures, would constitute eligible expenditures of Fund payments. Would such expenditures be eligible in the absence of a stay-at-home order? Fund payments may be used for economic support in the absence of a stay-at-home order if such expenditures are determined by the government to be necessary. This may include, for example, a grant program to benefit small businesses that close voluntarily to promote social distancing measures or that are affected by decreased customer demand as a result of the COVID-19 public health emergency. May Fund payments be used to assist impacted property owners with the payment of their property taxes? Fund payments may not be used for government revenue replacement, including the provision of assistance to meet tax obligations. May Fund payments be used to replace foregone utility fees? If not, can Fund payments be used as a direct subsidy payment to all utility account holders? Fund payments may not be used for government revenue replacement, including the replacement of unpaid utility fees. Fund payments may be used for subsidy payments to electricity account holders to the extent that the subsidy payments are deemed by the recipient to be necessary expenditures incurred due to the COVID-19 public health emergency and meet the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, if determined to be a necessary expenditure, a government could provide grants to individuals facing economic hardship to allow them to pay their utility fees and thereby continue to receive essential services. Could Fund payments be used for capital improvement projects that broadly provide potential economic development in a community? H.16.c Packet Pg. 419 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 6 In general, no. If capital improvement projects are not necessary expenditures incurred due to the COVID-19 public health emergency, then Fund payments may not be used for such projects. However, Fund payments may be used for the expenses of, for example, establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity or improve mitigation measures, including related construction costs. The Guidance includes workforce bonuses as an example of ineligible expenses but provides that hazard pay would be eligible if otherwise determined to be a necessary expense. Is there a specific definition of “hazard pay”? Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. The Guidance provides that ineligible expenditures include “[p]ayroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency.” Is this intended to relate only to public employees? Yes. This particular nonexclusive example of an ineligible expenditure relates to public employees. A recipient would not be permitted to pay for payroll or benefit expenses of private employees and any financial assistance (such as grants or short-term loans) to private employers are not subject to the restriction that the private employers’ employees must be substantially dedicated to mitigating or responding to the COVID-19 public health emergency. May counties pre-pay with CARES Act funds for expenses such as a one or two-year facility lease, such as to house staff hired in response to COVID-19? A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedures. Questions Related to Administration of Fund Payments Do governments have to return unspent funds to Treasury? Yes. Section 601(f)(2) of the Social Security Act, as added by section 5001(a) of the CARES Act, provides for recoupment by the Department of the Treasury of amounts received from the Fund that have not been used in a manner consistent with section 601(d) of the Social Security Act. If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury. What records must be kept by governments receiving payment? A government should keep records sufficient to demonstrate that the amount of Fund payments to the government has been used in accordance with section 601(d) of the Social Security Act May recipients deposit Fund payments into interest bearing accounts? Yes, provided that if recipients separately invest amounts received from the Fund, they must use the interest earned or other proceeds of these investments only to cover expenditures incurred in accordance with section 601(d) of the Social Security Act and the Guidance on eligible expenses. If a government deposits Fund payments in a government’s general account, it may use those funds to meet immediate cash management needs provided that the full amount of the payment is used to cover necessary H.16.c Packet Pg. 420 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 7 expenditures. Fund payments are not subject to the Cash Management Improvement Act of 1990, as amended. May governments retain assets purchased with payments from the Fund? Yes, if the purchase of the asset was consistent with the limitations on the eligible use of funds provided by section 601(d) of the Social Security Act. What rules apply to the proceeds of disposition or sale of assets acquired using payments from the Fund? If such assets are disposed of prior to December 30, 2020, the proceeds would be subject to the restrictions on the eligible use of payments from the Fund provided by section 601(d) of the Social Security Act. H.16.c Packet Pg. 421 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments April 22, 2020 The purpose of this document is to provide guidance to recipients of the funding available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act established the Coronavirus Relief Fund (the “Fund”) and appropriated $150 billion to the Fund. Under the CARES Act, the Fund is to be used to make payments for specified uses to States and certain local governments; the District of Columbia and U.S. Territories (consisting of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands); and Tribal governments. The CARES Act provides that payments from the Fund may only be used to cover costs that— 1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19); 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and 3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.1 The guidance that follows sets forth the Department of the Treasury’s interpretation of these limitations on the permissible use of Fund payments. Necessary expenditures incurred due to the public health emergency The requirement that expenditures be incurred “due to” the public health emergency means that expenditures must be used for actions taken to respond to the public health emergency. These may include expenditures incurred to allow the State, territorial, local, or Tribal government to respond directly to the emergency, such as by addressing medical or public health needs, as well as expenditures incurred to respond to second-order effects of the emergency, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19-related business closures. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments. The statute also specifies that expenditures using Fund payments must be “necessary.” The Department of the Treasury understands this term broadly to mean that the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. Costs not accounted for in the budget most recently approved as of March 27, 2020 The CARES Act also requires that payments be used only to cover costs that were not accounted for in the budget most recently approved as of March 27, 2020. A cost meets this requirement if either (a) the cost cannot lawfully be funded using a line item, allotment, or allocation within that budget or (b) the cost 1 See Section 601(d) of the Social Security Act, as added by section 5001 of the CARES Act. 1 H.16.c Packet Pg. 422 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. The “most recently approved” budget refers to the enacted budget for the relevant fiscal period for the particular government, without taking into account subsequent supplemental appropriations enacted or other budgetary adjustments made by that government in response to the COVID-19 public health emergency. A cost is not considered to have been accounted for in a budget merely because it could be met using a budgetary stabilization fund, rainy day fund, or similar reserve account. Costs incurred during the period that begins on March 1, 2020, and ends on December 30, 2020 A cost is “incurred” when the responsible unit of government has expended funds to cover the cost. Nonexclusive examples of eligible expenditures Eligible expenditures include, but are not limited to, payment for: 1. Medical expenses such as: • COVID-19-related expenses of public hospitals, clinics, and similar facilities. • Expenses of establishing temporary public medical facilities and other measures to increase COVID-19 treatment capacity, including related construction costs. • Costs of providing COVID-19 testing, including serological testing. • Emergency medical response expenses, including emergency medical transportation, related to COVID-19. • Expenses for establishing and operating public telemedicine capabilities for COVID-19- related treatment. 2. Public health expenses such as: • Expenses for communication and enforcement by State, territorial, local, and Tribal governments of public health orders related to COVID-19. • Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers in connection with the COVID-19 public health emergency. • Expenses for disinfection of public areas and other facilities, e.g., nursing homes, in response to the COVID-19 public health emergency. • Expenses for technical assistance to local authorities or other entities on mitigation of COVID-19-related threats to public health and safety. • Expenses for public safety measures undertaken in response to COVID-19. • Expenses for quarantining individuals. 3. Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 2 H.16.c Packet Pg. 423 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 4. Expenses of actions to facilitate compliance with COVID-19-related public health measures, such as: • Expenses for food delivery to residents, including, for example, senior citizens and other vulnerable populations, to enable compliance with COVID-19 public health precautions. • Expenses to facilitate distance learning, including technological improvements, in connection with school closings to enable compliance with COVID-19 precautions. • Expenses to improve telework capabilities for public employees to enable compliance with COVID-19 public health precautions. • Expenses of providing paid sick and paid family and medical leave to public employees to enable compliance with COVID-19 public health precautions. • COVID-19-related expenses of maintaining state prisons and county jails, including as relates to sanitation and improvement of social distancing measures, to enable compliance with COVID-19 public health precautions. • Expenses for care for homeless populations provided to mitigate COVID-19 effects and enable compliance with COVID-19 public health precautions. 5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, such as: • Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures. • Expenditures related to a State, territorial, local, or Tribal government payroll support program. • Unemployment insurance costs related to the COVID-19 public health emergency if such costs will not be reimbursed by the federal government pursuant to the CARES Act or otherwise. 6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund’s eligibility criteria. Nonexclusive examples of ineligible expenditures2 The following is a list of examples of costs that would not be eligible expenditures of payments from the Fund. 1. Expenses for the State share of Medicaid.3 2. Damages covered by insurance. 3. Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency. 2 In addition, pursuant to section 5001(b) of the CARES Act, payments from the Fund may not be expended for an elective abortion or on research in which a human embryo is destroyed, discarded, or knowingly subjected to risk of injury or death. The prohibition on payment for abortions does not apply to an abortion if the pregnancy is the result of an act of rape or incest; or in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the pregnancy itself, that would, as certified by a physician, place the woman in danger of death unless an abortion is performed. Furthermore, no government which receives payments from the Fund may discriminate against a health care entity on the basis that the entity does not provide, pay for, provide coverage of, or refer for abortions. 3 See 42 C.F.R. § 433.51 and 45 C.F.R. § 75.306. 3 H.16.c Packet Pg. 424 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l 4. Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds. 5. Reimbursement to donors for donated items or services. 6. Workforce bonuses other than hazard pay or overtime. 7. Severance pay. 8. Legal settlements. 4 H.16.c Packet Pg. 425 At t a c h m e n t : A t t a c h m e n t I I - C o r o n a v i r u s - R e l i e f - F u n d - F r e q u e n t l y - A s k e d - Q u e s t i o n s 5 2 8 ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l Government Small Cities Will Get County CARES Money Tied to Population Cities across San Diego County left out of the first round of federal CARES Act stimulus dollars may now get a check from county supervisors tied to the size of their population. Ashly McGlone June 4, 2020 Escondido City Hall / Photo by Adriana Heldiz H.16.d Packet Pg. 426 At t a c h m e n t : A t t a c h m e n t I I I - s a n d i e g o c a r e s a c t f u n d i n g s t o r y ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l M u n i c i p a l i t i e s ) Cities across San Diego County left out of the first round of federal CARES Act stimulus dollars may now get a check from county supervisors tied to the size of their population. U.S. Treasury rules allow San Diego County to share its $334 million award with smaller cities, but it was not required, leaving small cities in the lurch. Every city in the county except San Diego was left out of the direct CARES Act aid sent to local governments because they fell under the 500,000 population cutoff included in the legislation. Initially, federal legislators wanted to send CARES money to states alone for speed and efficiency, but “as cities urged more direct resources the 500,000 cut off was selected with the intent that states and counties would have a better sense of what the smaller cities needed than the federal government trying to make those decisions,” said Mary Anne Pintar, chief of staff for Rep. Scott Peters, in an email. The choice by San Diego County supervisors to share their CARES Act funds is welcome news to the region’s small cities, who said they are also grappling with the coronavirus pandemic. Before, they had access to smaller, more restricted piles of stimulus funds, including dollars set aside specifically for low-income residents or airports. In some cases, small city response costs have piled up with little to no federal aid to date. Some small cities also want to provide extra support to struggling businesses like larger cities and counties have done with CARES Act funds. Jeffrey Epp, city manager for Escondido, said he is “grateful” for the county cash. “Our share is a little more than $2 million and we will be using it wisely!” Epp wrote in an email. “We are looking at two general areas: first, reimbursement for incurred COVID-19 expenses, and then a second related category of expenses which would be in connection with our economic development/small business assistance efforts.” Oceanside hopes to spend the bulk of the new $3 million county allocation on payroll expenses for pandemic response and modifications to public facilities to continue operations and comply with social distancing. Those two things could cost $1 million each, said Michael Gossman, Oceanside’s assistant city manager. Staff hopes to spend the balance on personal protective equipment, paid sick and family leave to comply with public health orders, as well as support for small businesses. Oceanside staff’s proposal will go to the City Council June 17, Gossman said. “We plan to use the funding to provide assistance to small businesses, provide housing assistance to those that don’t qualify for other programs, help vulnerable populations get testing, and cover some city expenses related to the pandemic,” wrote Andy Hall, Imperial Beach city manager about the nearly $500,000 the city is eligible for from the county. H.16.d Packet Pg. 427 At t a c h m e n t : A t t a c h m e n t I I I - s a n d i e g o c a r e s a c t f u n d i n g s t o r y ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l M u n i c i p a l i t i e s ) Chula Vista is still figuring out exactly how it wants to spend the nearly $5 million it may receive from the county, though city spokeswoman Anne Steinberger said it will help cover a wide array of needs. “We anticipate utilizing the funds to support our COVID related responses in the city including: police, fire, and public works support for food drives, vaccination events, and public safety awareness; economic development efforts to help small businesses navigate the various federal funding programs; personal protective equipment for city staff; and supplies and equipment required for remote functionality of city operations,” Steinberger wrote in an email. El Cajon staff is working on a proposal for spending $1.84 million in new CARES Act money that will go to the City Council June 9, said city manager Graham Mitchell. To get the money, cities have to sign a contract with the county pledging to use the funds on only permissible coronavirus response costs, and detail the city’s spending plan. Costs like emergency aid and business loans or grants are allowed, as is paying for first responders or law enforcement of public health orders. But the money can’t be spent to simply backfill lost sales and tourism tax revenues – one of the larger problems governments face, including the county of San Diego. Here is a breakdown of the county’s CARES Act money now available for smaller cities: City Population % of Total Allocation Carlsbad 115,877 8.26% $ 2,065,728 Chula Vista 271,651 19.37% $ 4,842,695 Coronado 21,390 1.53% $ 381,317 Del Mar 4,347 0.31% $ 77,494 El Cajon 103,241 7.36% $ 1,840,467 Encinitas 62,904 4.49% $ 1,121,383 Escondido 152,213 10.85% $ 2,713,486 Imperial Beach 27,447 1.96% $ 489,295 La Mesa 59,556 4.25% $ 1,061,699 Lemon Grove 26,969 1.92% $ 480,774 National City 61,431 4.38% $ 1,095,124 Oceanside 176,080 12.56% $ 3,138,961 Poway 49,704 3.54% $ 886,068 San Marcos 96,847 6.91% $ 1,726,482 Santee 58,115 4.14% $ 1,036,010 Solana Beach 13,379 0.95% $ 238,506 H.16.d Packet Pg. 428 At t a c h m e n t : A t t a c h m e n t I I I - s a n d i e g o c a r e s a c t f u n d i n g s t o r y ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l M u n i c i p a l i t i e s ) Vista 101,224 7.22% $ 1,804,510 TOTAL 1,402,375 100.00% $ 25,000,000 Source: San Diego County Cities that take the county funds must communicate with county officials about spending them and must spend it on a fast track. “On July 31, cities will detail to the county how they have used CARES Act funds to date,” county spokeswoman Sarah Sweeney in an email. “By September 30, cities should exhaust all CARES Act funds and deliver a final report to the county. If a city does not utilize all of its CARES Act funds or if it spends the funds on an unallowable expense, the city is required to pay that portion of CARES Act funds back to the county.” The county has until Dec. 30 to spend all the $334 million it received, or risk returning money to the U.S. Treasury. Aside from the $25 million given to smaller cities in the region, county officials plan to spend the balance of their $334 million on testing and tracing efforts, COVID-19 housing, childcare vouchers for employees, local economic stimulus efforts and other costs. And still more financial help may be on the way later this year from the state or federal government. The latest version of Gov. Gavin Newsom’s proposed state budget for next year, which begins July 1, would send another $54.2 million in CARES Act money to San Diego County cities, with a separate $248,000 sent to the city of San Diego alone. That money is not certain though. State legislators have announced a deal on their own proposed budget – lawmakers and Newsom must reconcile their versions by June 15. Meanwhile, a new package of federal stimulus dollars for governments and individuals known as the HEROES Act passed a vote in the House, but has not been heard in the Senate and has stalled. Correction: An earlier version of this title misstated Mary Anne Pintar’s title. She is chief of staff to Rep. Scott Peters. H.16.d Packet Pg. 429 At t a c h m e n t : A t t a c h m e n t I I I - s a n d i e g o c a r e s a c t f u n d i n g s t o r y ( R e q u e s t S B C A l l o c a t e C A R E S A c t F u n d i n g t o L o c a l M u n i c i p a l i t i e s )