07/23/2019CITY OF GRAND TERRACE
CITY COUNCIL, CITY COUNCIL AS THE SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY
AND HOUSING AUTHORITY
AGENDA ● JULY 23, 2019
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road
City of Grand Terrace Page 1
The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require
special assistance to participate in this meeting, please call the City Clerk’s office at (909) 824 -6621 at
least 48 hours prior to the meeting.
If you desire to address the City Council during the meeting, please complete a Request to Speak Form
available at the entrance and present it to the City Clerk. Speakers will be called upon by the Mayor at
the appropriate time.
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 Cit y’s website at
www.grandterrace-ca.gov.
CALL TO ORDER
Convene City Council, City Council as the Successor Agency to the Community
Redevelopment Agency and Housing Authority.
Invocation
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
Bob Dutton, San Bernardino County Assessor - Current Tax Roll Data
Grand Terrace Little League - Certificates of Recognition
Agenda Grand Terrace City Council, Successor Agency and Housing Authority July 23, 2019
City of Grand Terrace Page 2
B. 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 – 07/09/2019
RECOMMENDATION:
Adopt the Regular Meeting Minutes of July 9, 2019
DEPARTMENT: CITY CLERK
3. Attachment to Minutes - Regular Meeting 07/09/2019
RECOMMENDATION:
Adopt the Attachment to the Regular Meeting Minutes of July 9, 2019
DEPARTMENT: CITY CLERK
4. Selection of Voting Delegates for the California League of Cities 2019 Annual
Conference
RECOMMENDATION:
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, APPOINTING DELEGATES AND ALTERNATES TO THE
2019 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE AS OFFICIAL
REPRESENTATIVES OF THE CITY OF GRAND TERRACE
DEPARTMENT: CITY CLERK
5. Approval of Check Register No. 06302019 in the Amount of $445,405.00
RECOMMENDATION:
Approve Check Register No. 06302019 in the amount $445,405.00 as submitted, which
includes the Check Register Account Index for Fiscal Year 2018-19.
DEPARTMENT: FINANCE
6. April 2019 Monthly Financial Report
RECOMMENDATION:
Receive and file the April 2019 Monthly Financial Report.
DEPARTMENT: FINANCE
Agenda Grand Terrace City Council, Successor Agency and Housing Authority July 23, 2019
City of Grand Terrace Page 3
7. Annual Financial Report for the Year Ended June 30, 2018
RECOMMENDATION:
Receive and file the Annual Financial Report and related documents for the year ended
June 30, 2018.
DEPARTMENT: FINANCE
C. 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.
D. CITY COUNCIL COMMUNICATIONS
Council Member Jeff Allen
Council Member Bill Hussey
Council Member Sylvia Robles
Mayor Pro Tem Doug Wilson
Mayor Darcy McNaboe
E. PUBLIC HEARINGS - NONE
F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS
8. Award of Community Benefit Funds in the Amount of $2,000 to the Grand Terrace High
School Football Boosters
RECOMMENDATION:
Approve the Community Benefit Fund grant application f rom the Grand Terrace High
School Football Boosters and award the grant amount of $2,000 for their “Honoring Our
Veterans” Event.
Agenda Grand Terrace City Council, Successor Agency and Housing Authority July 23, 2019
City of Grand Terrace Page 4
DEPARTMENT: FINANCE
9. A Resolution of the City Council Establishing an Expanded Public Noticing and
Outreach Policy for Public Hearings and Public Workshops and Directing City Staff to
Process a Zoning Code Amendment for Projects Subject to Public Hearings
RECOMMENDATION:
1) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE ADOPTING AN EXPANDED PUBLIC NOTICING AND OUTREACH
POLICY FOR PUBLIC HEARINGS AND PUBLIC WORKSHOPS ON
DEVELOPMENT RELATED PROJECTS; and
2) Direct Staff to Process a Code Amendment to Modify the Minimum Public Hearing
Notice Requirements for Site and Architectural Review, Conditional Use Permit,
Variance and Amendment Applications.
DEPARTMENT: PLANNING & DEVELOPMENT SERVICES
H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE
I. CITY MANAGER COMMUNICATIONS
J. RECESS TO CLOSED SESSION
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of Litigation Pursuant to California Government Code Section
54956.9(d)(4)
Number of Potential Cases: One
2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, pursuant to Government
Code Section 54956.6
TITLE: City Manager
RECONVENE TO OPEN SESSION
REPORT OUT OF CLOSED SESSION
Agenda Grand Terrace City Council, Successor Agency and Housing Authority July 23, 2019
City of Grand Terrace Page 5
K. ADJOURN
The Next Regular City Council Meeting will be held on Tuesday, August 1 3, 2019 at
6:00 p.m. 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, CITY COUNCIL AS THE SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY
AND HOUSING AUTHORITY
MINUTES ● JULY 9, 2019
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, City Council
as the Successor Agency to the Community Redevelopment Agency and Housing
Authority on July 9, 2019 at 6:00 p.m.
INVOCATION
The Invocation was provided by Pastor Patrick Bower of The Brook Church.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Adrian Guerra, City Attorney.
Attendee Name Title Status Arrived
Darcy McNaboe Mayor Present
Doug Wilson Mayor Pro Tem Present
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 Public Works Director Present
Sandra Molina Planning & Development Services Director Present
Cynthia A. Fortune Assistant City Manager Present
A. SPECIAL PRESENTATIONS - NONE
B. CONSENT CALENDAR
Council Member Jeff Allen requested that Agenda Item No. 6 be pulled from the
Consent Calendar for discussion.
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Minutes Grand Terrace City Council, Successor Agency and Housing Authority July 9, 2019
City of Grand Terrace Page 2
Council Member Bill Hussey requested that Agenda Item No. 3 be pulled from the
Consent Calendar for discussion.
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 – 06/25/2019
APPROVE THE REGULAR MEETING MINUTES OF JUNE 25, 2019
4. Planning Commission, Historical & Cultural Activities Committee, and Parks &
Recreation Advisory Committee Meeting Minutes
RECEIVE AND FILE.
5. Approval of Check Register No. 05312019 in the Amount of $532,607.98
APPROVE CHECK REGISTER NO. 05312019 IN THE AMOUNT $532,607.98 AS
SUBMITTED, WHICH INCLUDES THE CHECK REGISTER ACCOUNT INDEX FOR
FISCAL YEAR 2018-19.
7. March-2019 Monthly Financial Report
RECEIVE AND FILE THE MARCH-2019 MONTHLY FINANCIAL REPORT.
AGENDA ITEM NOS. 3 AND 6 PULLED FOR DISCUSSION
3. Attachments to Minutes - Regular Meeting - 06/25/2019
APPROVE THE ATTACHMENTS TO THE REGULAR MEETING MINUTES OF
JUNE 25, 2019
6. City Department Monthly Activity Report - May 2019
RECEIVE AND FILE.
RESULT: APPROVED [UNANIMOUS]
MOVER: Jeff Allen, Council Member
SECONDER: Bill Hussey, Council Member
AYES: McNaboe, Wilson, Robles, Hussey, Allen
C. PUBLIC COMMENT
None.
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Minutes Grand Terrace City Council, Successor Agency and Housing Authority July 9, 2019
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D. CITY COUNCIL COMMUNICATIONS
Council Member Jeff Allen
Council Member Jeff Allen thanked staff and Assembly Member Eloise Reyes for the
extraordinary effort placed into obtaining a grant received by the City for the Blu e
Mountain Wilderness Park and the accessible playground equipment for children.
Council Member Bill Hussey
Council Member Bill Hussey thanked the Assembly Member, her staff and City staff for
securing the grant and the accessible handicap equipment.
Council Member Sylvia Robles
Council Member Sylvia Robles thanked Assembly Member Eloise Reyes for all of her
efforts on behalf of the community.
Mayor Pro Tem Doug Wilson
Mayor Pro Tem Doug Wilson commented on the recent earthquakes and conveyed to
the City’s residents the importance of earthquake preparedness. He also wanted to
remind everyone that they will be responsible for their own safety and security during a
major event.
Mayor Darcy McNaboe
Mayor Darcy McNaboe thanked Assembly Member Reyes for th e $1.3 million she was
able to secure for Grand Terrace. The accessible playground equipment will be put to
good use, as well as the City’s Blue Mountain Trail that everyone has been waiting for.
Remembering local resident, Peter Dustin Parsons. Pete Parsons retired from Radio
Wars, was a program director at a number of stations, as well as an on -air personality.
He would receive an AP wire feed and put a spin on it to make it his own. He worked for
KFWB in Hollywood/Los Angeles, KCKC in San Bernardino, KOKU in Guam, KMEN in
San Bernardino, KPSI in Palm Springs, KHSJ in Hemet, KCIN in Victorville, KHNY in
Riverside, KPAS in Banning as an on-air personality and program director. When he
retired from performing those services, he brought his knowledge of the radio world and
program direction to the City of Grand Terrace radio station. He was a short -term editor
for the Grand Terrace News. He served four years with the Army Security Agency from
1963 to 1967 in the Philippines, Vietnam, Thailand and just outside of Washington, DC.
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Minutes Grand Terrace City Council, Successor Agency and Housing Authority July 9, 2019
City of Grand Terrace Page 4
E. PUBLIC HEARINGS
8. Hearing of Appeals of Delinquent Refuse, Sewer and Rental Inspection Fees; Adoption
of Resolutions to Collect Said Delinquent Fees on the Tax Roll and for the Placement
Of Assessments for Said Delinquent Fees on Properties Located in the City; Approval of
Agreement with the County for Collection of Fees, Assessment and Taxes in Fiscal
Year 2019-2020
Todd Nakasaki, Management Analyst gave the Power Point presentation for this item.
Mayor McNaboe opened the Public Hearing at 6:25 p.m.
Michael Aragon, Burrtec Waste Management stated he was available to answer any
questions the City Council may have.
PUBLIC COMMENT
None.
Mayor McNaboe closed the Public Hearing at 6:29 p.m.
Debra Thomas, City Clerk clarified that the revised list of delinquent refuse, sewer user
fees and non-owner occupied rental property program fees and fines were updated after
the printing of the agenda. The City Council was provided with an updated list and
placed at the dais.
Adrian Guerra, City Attorney has recommended that the maker of the motion and the
seconder will note and approve an amendment to the motion indicating that the revised
list be included in that action.
1) CONDUCT A PUBLIC HEARING TO HEAR APPEALS OF DELINQUENT
FEES THAT ARE PROPOSED FOR ADOPTION AND ASSESSMENT ON THE
TAX ROLLS OF THE COUNTY TAX ASSESSOR.
2) ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ADOPTING THE REVISED REPORT OF DELINQUENT REFUSE AND SEWER
USER FEES AND DIRECTING THAT SUCH DELINQUENT FEES BE
COLLECTED ON THE TAX ROLL AND BE IMPOSED AS AN ASSESSMENT
UPON PROPERTY WITHIN THE CITY OF GRAND TERRACE
3) ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,
ADOPTING THE REVISED REPORT OF DELINQUENT NON-OWNER
OCCUPIED RENTAL PROPERTY PROGRAM FEES AND FINES AND
DIRECTING THAT SUCH DELINQUENT FEES BE COLLECTED ON THE TAX
ROLL AND BE IMPOSED AS A ASSESSMENT LIEN UPON PROPERTY
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WITHIN THE CITY OF GRAND TERRACE
4) APPROVE THE AUDITOR-CONTROLLER/TREASURER/TAX COLLECTOR
AGREEMENT FOR COLLECTION OF SPECIAL TAXES, FEES, AND
ASSESSMENTS FISCAL YEAR 2019-20 AND AUTHORIZE THE CITY
MANAGER TO EXECUTE THE AGREEMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Bill Hussey, Council Member
SECONDER: Doug Wilson, Mayor Pro Tem
AYES: McNaboe, Wilson, Robles, Hussey, Allen
9. 2019-2020 Landscape & Lighting Assessment District 89-1 Public Hearing and Adoption
of Resolution Ordering the Levy and Collection of Assessments Therefore
Alan French, Director of Public Works gave the Power Point presentation for this item
and presented the Landscaping and Lighting Assessment District No. 89 -1 Engineer’s
Report to the City Council.
Mayor McNaboe opened the Public Hearing at 6:33 p.m.
Mayor Pro Tem Wilson expressed his concern that the fi scal impact estimated by the
Engineer’s Report will impact the General Fund.
Director French explained that Zones 1 and 2 did not include a rider to increase the
assessment in future years. That assessment set on those zones is permanent and
unable to be increased.
Mayor McNaboe asked the City Attorney to confirm if City Council wanted to increase
the assessment in Zones 1 and 2, that action would be subject to a Prop 218 Hearing.
Adrian Guerra, City Attorney confirmed that statement to be true.
PUBLIC COMMENT
None.
Mayor McNaboe closed the Public Hearing at 6:37 p.m.
G. Harold Duffey, City Manager stated that the City Council has two options. The City
Council could provide services up to the revenue limit for those zones permanently
assessed or hold a Prop 218 Public Hearing.
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Discussion ensued that once the revenue supporting the Landscape and Lighting
Assessment District in those permanently assessed zones was exhausted, services
could be discontinued for the remainder of the year.
Mayor McNaboe moved to approve a Resolution of the City Council of the City of Grand
Terrace approving the Engineer’s Annual Levy Report for and Confirming the Diagram
and Assessment and Ordering the Levy and collection of Assessments within the City of
Grand Terrace Landscaping and Street Lighting District No. 89 -1, Fiscal Year 2019-
2020 and only spend up to the amount contained in the Lighting and Landscaping
District with a second from Council Member Robles.
City Manager Duffey requested that City Council ask s taff to return with a timeline when
the annual funding from the Lighting and Landscaping District will expire.
Mayor McNaboe amended her motion to include staff will return with an expirat ion date
for the annual funding from the Lighting and Landscaping D istrict, with a second from
Council Member Robles.
City Attorney Guerra requested that City Council direct the City Attorney and City
Manager to revise the resolution to include the Mayor’s amended motion.
Mayor McNaboe amended her motion to include dire ction to the City Attorney and City
Manager to revise the resolution to include an expiration date for the annual funding
from the Lighting and Landscaping District, with a second from Council Member Robles.
Mayor McNaboe recapped the motion:
1) CONDUCT THE PUBLIC HEARING; AND
2) AMEND THE PROPOSED RESOLUTION TO INCLUDING SPENDING ONLY
THAT AMOUNT WHICH AS BEEN ASSESSED FOR THE LANDSCAPING
AND LIGHTING ASSESSMENT DISTRICT NO. 89-1,
3) DIRECT STAFF TO RETURN WITH A PLAN FOR HOW THAT WILL CHANGE
THE WAY THAT THE CITY PROVIDES SERVICES TO THE LANDSCAPING
AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 THROUGHOUT THE
YEAR; AND
4) DIRECT THE CITY ATTORNEY AND CITY MANAGER TO AMEND THE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE
APPROVING THE ENGINEER’S ANNUAL LEVY REPORT FOR, AND
CONFIRMING THE DIAGRAM AND ASSESSMENT AND ORDERING THE
LEVY AND COLLECTION OF ASSESSMENTS WITHIN, THE CITY OF GRAND
TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1,
FISCAL YEAR 2019-2020 TO IDENTIFY THE CHANGES OUTLINED ABOVE
AND TO RETURN TO CITY COUNCIL FOR APPROVAL.
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RESULT: APPROVED [UNANIMOUS]
MOVER: Darcy McNaboe, Mayor
SECONDER: Sylvia Robles, Council Member
AYES: McNaboe, Wilson, Robles, Hussey, Allen
F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS
10. Adoption of a Resolution to Apply for Grant Funds from the California Department of
Parks and Recreation’s Office of Grants and Local Assistance Statewide Park
Development and Community Revitalization Program for the Grand Terrace Middle
School Pool Refurbishment Project
Sandra Molina, Planning and Development Services Director gave the Power Point
presentation for this item.
ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE APPROVING THE SUBMITTAL OF THE APPLICATION FOR STATEWIDE
PARK DEVELOPMENT AND COMMUNITY REVITALIZATION PROGRAM GRANT
FUNDS FOR THE GRAND TERRACE MIDDLE SCHOOL POOL REFURBISHMENT
PROJECT
RESULT: APPROVED [UNANIMOUS]
MOVER: Jeff Allen, Council Member
SECONDER: Bill Hussey, Council Member
AYES: McNaboe, Wilson, Robles, Hussey, Allen
H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE
I. CITY MANAGER COMMUNICATIONS
G. Harold Duffey, City Manager provided information on the following:
· On July 20, 2019, the Sound of Music will be playing at Veterans Freedom Park
beginning at 7:00 p.m.
· On August 3, 2019, Jailhouse Rock will be playing at the City’s Fitness Park
beginning at 7:00 p.m. which will include an Elvis impersonator as the musical
entertainment.
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J. CLOSED SESSION - NONE
K. ADJOURN
Mayor McNaboe adjourned the Regular Meeting of the City Council in memory of Peter
D. Parsons at 6:57 p.m. The Next Regular City Council Meeting will be held on
Tuesday, July 23, 2019 at 6:00 p.m.
_________________________________
Darcy McNaboe, Mayor
_________________________________
Debra L. Thomas, City Clerk
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CITY OF GRAND TERRACE
CITY COUNCIL, CITY COUNCIL AS THE SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY
AND HOUSING AUTHORITY
MINUTES ● JULY 9, 2019
Council Chamber Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road
City of Grand Terrace
ATTACHMENTS TO
July 9, 2019
City Council Minutes
PowerPoint Presentations
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1
PUBLIC HEARING
DELINQUENT REFUSE, SEWER, AND RENTAL
INSPECTION FEES
7/9/2019
REFUSE, SEWER, AND RENTAL FEES
City of Grand
Terrace
City of
Colton
Burrtec
Rental
Property
County Assessor
1
2
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2
JUN 3, 2019 Notice sent to residents
JUL 9, 2019 Council Agenda includes list with delinquent
accounts not paid by June 27th.
JUL 15, 2019 List of accounts not paid by July 2
nd submitted to
County as “Preliminary List”
AUG 12, 2019 List of accounts not paid by August 1
st submitted
to County as “First List of Special Assessments”
AUG 30, 2019 List of accounts not paid by August 21
st submitted
to County as “Final Corrected List of Special
Assessments”
DELINQUENT ACCOUNT LIST TIMELINE
QUESTIONS?
3
4
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B.3Packet Pg. 19Communication: Attachment to Minutes - Regular Meeting 07/09/2019 (Consent Calendar)
7/17/2019
1
Item G.10
Statewide Parks Program –
Grant Application
CITY COUNCIL MEETING
JULY 9, 2019
2030 Vision Statement
Goal #4. Develop and Implement
Successful Partnerships
-Work Collaboratively with Community
Groups, Private and Public-Sector
Agencies to Facilitate the Delivery of
Services Benefiting Youth, Seniors and
Our Community
-Work with Local, Regional and State
Agencies to Secure Funding for
Programs and Projects
1
2
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7/17/2019
2
Proposition
68
Statewide
Park
Program
Create a NEW PARK, or
EXPAND an EXISTING PARK, or
RENOVATE an EXISTING PARK
$255,000,000 in available grant funds
No match required
3
4
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7/17/2019
3
Improvements:
Shade structures
Project screen
Splash pad
Walk in “beach” feature
ADA
Access to lockers
Activities
Open swim/swim lessons
Competitive swim
Dive in movie
Water aerobics
Recommendation
Adoption of a Resolution to Apply for Grant Funds from
the California Department of Parks and Recreation’s
Office of Grants and Local Assistance Statewide Park
Development and Community Revitalization Program for
the Grand Terrace Middle School Pool Refurbishment
Project
5
6
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7/17/2019
1
City Manager’s Update
7/9/2019
1
2
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AGENDA REPORT
MEETING DATE: July 23, 2019 Council Item
TITLE: Selection of Voting Delegates for the California League of
Cities 2019 Annual Conference
PRESENTED BY: Debra Thomas, City Clerk
RECOMMENDATION: Adopt A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF GRAND TERRACE, CALIFORNIA,
APPOINTING DELEGATES AND ALTERNATES TO THE
2019 LEAGUE OF CALIFORNIA CITIES ANNUAL
CONFERENCE AS OFFICIAL REPRESENTATIVES OF
THE CITY OF GRAND TERRACE
2030 VISION STATEMENT:
This staff report supports City Council Goal #4 “Develop and Implement Successful
Partnerships” by working collaboratively with Public Sector , Local, Regional and State
Agencies to facilitate the delivery of services to our community and to secure funding for
programs and projects.
BACKGROUND:
The City of Grand Terrace is a member of the League of California Cities. The League’s
Annual Legislative Conference is scheduled for October 16, 2019 through October 18,
2019 to be held in the City of Long Beach at the Long Beach Convention Center.
Member cities are encouraged to send a City representative as a delegate to represent
the City and cast their vote on League policy. Each City is allowed one (1) vote.
On December 11, 2018, the City Council appointed members of the City Council to
represent the City on various Boards, Commissions and Committees. Those appointed
to the League of California Cities Division Meetings and Annual Meeting are as follows:
Mayor Pro Tem Doug Wilson - Delegate
Council Member Jeff Allen - Alternate
DISCUSSION:
An important part of the Annual Conference is participating in the Annual Business
Meeting at the General Assembly. The Annual Business Meeting is scheduled for
12:30 pm on Friday, October 18, 2019 at the Long Beach Convention Center. For
Grand Terrace to be able to vote at the Annual Business meeting, a Voting Delegate
must be determined. In addition, up to two alternate voting delegates may be appointed
in the absence of the voting delegate (only one of the two will be allowed to vote).
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Consistent with League bylaws, the City’s voting delegate, and up to two alternates,
must be designated by the City Council. Designating the voting delegate and alternates
must be done by City Council action. In addition, the voting delegate and alternates
must be registered to attend the conference. If the voting delegate cannot attend the
complete conference, they may register for Friday only. To be able to cast a vote, at
least one voter must be present at the Business Meeting in possession of the voting
delegate card and a Voting Delegate sticker.
The League of California Cities has requested attending cities to submit before
August 30, 2019, a Resolution designating the voting delegate and up to two alternates.
Adoption of the attached Resolution will satisfy League requirements and enable the
City of Grand Terrace to participate in the League's Annual Business Meeting,
scheduled for October 18, 2019.
The City Council’s attendees to the annual conference will be Mayor Pro Tem Wilson
and Council Member Allen. The annual conference is extremely valuable for new
council members and offers a variety of sessions for league members to learn of
innovative programs implemented throughout the State of California.
FISCAL IMPACT:
There is no fiscal impact by designating the voting delegate and alternates.
ATTACHMENTS:
• Designation of Voting Delegates and Alternates Letter (PDF)
• 2019-xx - League of CA Cities Delegate-Alternate (DOCX)
APPROVALS:
Debra Thomas Completed 07/15/2019 11:58 AM
City Attorney Completed 07/17/2019 10:04 AM
Finance Completed 07/17/2019 8:04 PM
City Manager Completed 07/17/2019 8:14 PM
City Council Pending 07/23/2019 6:00 PM
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B.4.aPacket Pg. 26Attachment: Designation of Voting Delegates and Alternates Letter (California League of Cities 2019 Designation of Voting Delegates)
B.4.aPacket Pg. 27Attachment: Designation of Voting Delegates and Alternates Letter (California League of Cities 2019 Designation of Voting Delegates)
B.4.aPacket Pg. 28Attachment: Designation of Voting Delegates and Alternates Letter (California League of Cities 2019 Designation of Voting Delegates)
B.4.aPacket Pg. 29Attachment: Designation of Voting Delegates and Alternates Letter (California League of Cities 2019 Designation of Voting Delegates)
CC Reso 2019-xx Page 1 of 2 July 23, 2019
RESOLUTION NO. 2019-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GRAND TERRACE, CALIFORNIA, APPOINTING
DELEGATES AND ALTERNATES TO THE 2019
LEAGUE OF CALIFORNIA CITIES ANNUAL
CONFERENCE AS OFFICIAL REPRESENTATIVES OF
THE CITY OF GRAND TERRACE
WHEREAS, the League of California Cities (“League”) will be having its
2019 Annual Conference from October 16 , 2019 to October 18, 2019 in Long
Beach, California; and
WHEREAS, the League’s 2019 Annual Conference will have an Annual
Business Meeting on Friday, October 18, 2019 in which the League’s membership
may consider and take action on resolutions that establish League policy; and
WHEREAS, in order to participate in the Annual Business Meeting and to
attend the League’s 2019 Annual Conference, the Bylaws of the League require the
City Council to appoint, by a majority vote, a primary Voting Delegate and up to two
(2) Alternate Voting Delegates, one (1) of whom may vote in the Annual Business
Meeting in the event that the primary designated voting delegate is unable to
serve in that capacity; and
WHEREAS, the City Council n o w desires to appoint a Voting Delegate
and Alternate Voting Delegate to the 2019 League of California Cities Annual
Conference.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND
ORDER AS FOLLOWS:
SECTION 1. Mayor Pro Tem Doug Wilson is hereby appointed to serve as the
Voting Delegate to the 2019 League of California Cities Annual Conference representing
the City of Grand Terrace.
SECTION 2. Council Member Jeff Allen is hereby appointed to serve as the
Alternate Voting Delegate to the 2019 League of California Cities Annual Conference
representing the City of Grand Terrace.
SECTION 3. The City Clerk of the City of Grand Terrace shall certify to the
passage and adoption of this Resolution and its approval by the City Council and shall
cause the same to be listed in the records of the City.
SECTION 4. The City Clerk of the City of Grand Terrace is directed to submit a
certified copy of this Resolution before August 30, 2019 to the League of California
B.4.b
Packet Pg. 30 Attachment: 2019-xx - League of CA Cities Delegate-Alternate [Revision 2] (California League of Cities 2019 Designation of Voting Delegates)
CC Reso 2019-xx Page 2 of 2 July 23, 2019
Cities.
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 July 2019.
Darcy McNaboe, Mayor
ATTEST:
Debra L. Thomas
City Clerk
APPROVED AS TO FORM:
Adrian R. Guerra
City Attorney
B.4.b
Packet Pg. 31 Attachment: 2019-xx - League of CA Cities Delegate-Alternate [Revision 2] (California League of Cities 2019 Designation of Voting Delegates)
AGENDA REPORT
MEETING DATE: July 23, 2019 Council Item
TITLE: Approval of Check Register No. 06302019 in the Amount of
$445,405.00
PRESENTED BY: Cynthia Fortune, Assistant City Manager
RECOMMENDATION: Approve Check Register No. 06302019 in the amount
$445,405.00 as submitted, which includes the Check
Register Account Index for Fiscal Year 2018-19.
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 check register, for the period ending June 30, 2019, has been prepared in
accordance with Government Code §37202 and is hereby submitted for the City
Council’s approval.
The check register lists all vendor payments for the preceding month, along with a brief
description of the type of goods or services purchased and the account code(s)
associated with each payment. Check Register No. 06302019 lists all payments made
to vendors and employee reimbursements during the month of June.
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.
A total of $445,405.00 in accounts payable checks or wires were issued during the
period for services, reimbursements, supplies and contracts and are detailed in the
attached check register.
Payments larger than $10,000:
Check
No. Payee Description Amount
76380 CLEAN CUT LANDSCAPE DOG PARK CONSTRUCTION $102,645.66
76406 HARDY & HARPER INC EMERG RD REPAIR, GUTTER, SIDEWLK $52,093.01
76408 HIRSCH & ASSOC INC BLUE MTN TRAIL PRELIM DESIGN $37,272.00
B.5
Packet Pg. 32
Check
No. Payee Description Amount
76410 INTERWEST CONSULTING BLDG & SAFTY SVCS (MAR-APR2019) &
COMMERCE WAY PROJECT MGMT $23,975.00
76412 SO. CAL EDISON MAY-2019 ENERGY USAGE 10,041.40
76419 WEST COAST ARBORISTS INC JAN-FEB-MAY-2019 TREE MAINT SVCS $29,402.00
76426 ARROWHEAD CREDIT UNION CREDIT CARD CHARGES $10,584.74
76432 FAMILY SERVICES ASSN SENIOR MEALS PROVISION - CDBG $10,000.00
TOTAL CHECKS ISSUED $276,013.81
Payroll costs for the month ending April-2019
Pay
Per.
Period
Ending Period Pay Date Amount
25 05/31/2019 Period 05/18/2019 –05/31/2019 06/06/2019 $50,648.20
26 06/14/2019 Period 06/01/2019 – 06/19/2019 06/14/2019 $52,556.76
TOTAL PAYROLL FOR JUNE-2019 $108,107.42
FISCAL IMPACT:
All disbursements (including payroll) were made in accordance with the Approved
Budget for Fiscal Year 2018-19 in the amount of:
Description Amount
Check Register $445,405.00
Payroll $108,107.42
TOTAL $553,512.42
.
ATTACHMENTS:
• A - Check Register Account Index (PDF)
• B - Check Register No. 06302019 (PDF)
APPROVALS:
Cynthia A. Fortune Completed 07/12/2019 8:39 PM
Finance Completed 07/12/2019 8:39 PM
City Attorney Completed 07/17/2019 9:18 AM
City Manager Completed 07/17/2019 8:16 PM
B.5
Packet Pg. 33
City Council Pending 07/23/2019 6:00 PM
B.5
Packet Pg. 34
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 218 NON-CAPITAL FURN/SMALL TOOLS
19 FACILITIES DEVELOPMENT FUND 190 GENERAL GOVERNMENT (NON-DEPT)220 SPECIAL DEPARTMENTAL EXP
20 MEASURE I FUND 195 FACILITIES MAINTENANCE 230 ADVERTISING
21 WASTE WATER DISPOSAL FUND 370 COMMUNITY DEV (PLANNING)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 245 MAINT BLDG GRNDS EQUIPMNT
31 S/A RDA OBLIGATION FUND 430 RECREATION SERVICES 246 MAINT/OPER OF EQUIPMNT
32 S/A CAPITAL PROJECTS FUND 441 CHILD CARE - NUTRITION GRANT 250 PROFESSIONAL SERVICES
33 S/A DEBT SERVICE FUND 445 CHILD CARE - TINY TOTS 251 BANKING SERVICE CHARGES
36 S/A 2011 TABS BOND PROCEEDS 446 CHILD CARE - AFTER SCHOOL 255 CONTRACTUAL SERVICES
37 S/A CRA PROJECTS TRUST 447 CHILD CARE - PRE-SCHOOL 260 INSURANCE & SURETY BONDS
46 CIP - STREET IMPROVEMENT PROJECTS 450 PARKS MAINTENANCE 265 MEMBERSHIPS & DUES
47 CIP - BARTON RD. BRIDGE PROJECT 510 STREET & SIGNAL LIGHTING 268 TRAINING
48 CIP - CAPITAL PROJECTS FUND 600 WEST SIDE PARK 270 TRAVEL/CONFERENCES/MTGS
52 HOUSING AUTHORITY 601 TRACT 14471 PICO & ORIOLE 271 MILEAGE
61 COMMUNITY BENEFITS FUND 602 FORREST CITY PHASE II 272 FUEL & VEHICLE MAINTENANCE
64 PUBLIC SAFETY FUND 625 NPDES 273 VEHICLE ALLOWANCE
65 SENIOR BUS PROGRAM FUND 631 STORM DRAIN MAINTENANCE 300 DEBT SERVICE
66 CAL RECYCLE GRANT 801 PLANNING COMMISSION 570 WASTEWATER TREATMENT
70 FIXED ASSED/EQUIP REPL FUND 804 HISTORICAL & CULTURAL COMM.700 COMPUTER-RELATED
805 SENIOR CITIZENS PROGRAM 701 VEHICLES & EQUIPMENT
808 EMERGENCY OPERATIONS PROG.
999 TRANSFERS
City of Grand Terrace Check Register Index
B.5.a
Packet Pg. 35 Attachment: A - Check Register Account Index (Approval of June Check Register No. 06302019)
Invoice #
E 10-955-800-107-000 54,254.00
E 49-471-700-000-000 48,391.66
102,645.66
102,645.66
B 23-505-69-00 2,431.80
2,431.80
2,431.80
76380 06/11/2019 CLEAN CUT LANDSCAPE INC GTDP-Set-1 DOG PARK CONSTRUCTION 06/04/2019
E 10-380-250-000-000 900.00
900.00
900.00
76379 06/11/2019 CENTRAL PACIFIC PROPERTIES 05282019 CPP REFUND DEPOSIT PRECISE GRADING INSPECT 05/28/2019
E 10-175-250-000-000 465.00
465.00
3,520.00
76378 06/11/2019 BENSON PRODUCTIONS 1290 VIDEOGRAPHY SERVICE MAY'19 05/28/2019
E 46-900-326-030-000 3,055.00
3,055.00
191430 COST EST - CANAL ROAD IMPROVEMENTS 04/27/2019
E 10-140-250-000-000 1,335.32
1,335.32
4,225.59
76377 06/11/2019 ALBERT A WEBB ASSOCIATES 192161 MAY19 COMMERCE WAY FINAL DESIGN 05/25/2019
E 10-140-250-000-000 1,405.60
1,405.60
53521629 ACCOUNTING SERVICES~05/27/2019
E 10-140-250-000-000 1,484.67
1,484.67
53447734 ACCOUNTING SERVICES~05/15/2019
Check Total
76376 06/11/2019 ACCOUNTEMPS 53474586 ACCOUNTING SERVICES~05/21/2019
Check #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
B.5.b
Packet Pg. 36 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-110-142-000-000 249.23
249.23
249.23
E 10-804-220-000-000 186.02
186.02
186.02
76385 06/11/2019 WILLIAM HUSSEY JUNE-2019-BH JUNE '19 HEALTH INS REIMB - HUSSEY 06/05/2019
E 10-175-210-000-000 29.75
29.75
29.75
76384 06/11/2019 SHIRLEY HOGUE 06032019 SH HIST & CULT COMM - FY18/19 SUPPLIES REIMB 06/03/2019
E 22-425-312-000-000 1,478.78
1,478.78
7,050.75
76383 06/11/2019 FEDEX 6-440-65133 DELIVERY SERVICES TO A&W 01/25/2019
E 22-425-312-000-000 1,535.94
1,535.94
04-2019-004 APR19 SENIOR CENTER COORDINATOR 04/30/2019
E 22-425-312-000-000 1,922.30
1,922.30
03-2019-041 MAR19 SENIOR CENTER COORDINATOR 03/31/2019
E 22-425-312-000-000 2,113.73
2,113.73
10-2018-040 OCT18 SENIOR CENTER COORDINATOR 10/31/2018
E 16-900-254-000-000 4,542.33
4,542.33
9,084.66
76382 06/11/2019 FAMILY SERVICES ASSOCIATION 02-2019-040 FEB19 SENIOR CENTER COORDINATOR 02/28/2019
E 16-900-254-000-000 4,542.33
4,542.33
94148 MAY19 STREET SWEEPING SERVICES 05/31/2019
76381 06/11/2019 CLEAN STREET 93863 APR19 STREET SWEEPING SERVICES 04/30/2019
B.5.b
Packet Pg. 37 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-450-245-000-000 4.27
4.27
112.02
E 10-450-245-000-000 107.75
107.75
43162 PICO PARK RESTROOM KEYS 03/06/2019
R 10-420-10 97.00
97.00
97.00
76391 06/11/2019 SO CAL LOCKSMITH 43257 LOCK REPAIR FREEDOM PARK SNACK BAR 03/15/2019
E 10-110-142-000-000 250.81
250.81
250.81
76390 06/11/2019 HARRY ROUSSOS HR-LU19-32 REFUND LAND USE APP 22051 BARTON RD TEM 06/04/2019
E 10-125-210-000-000 61.88
61.88
61.88
76389 06/11/2019 SYLVIA ROBLES JUNE-2019-SR-1 JUNE19 HEALTH INSURANCE REIMB - ROBLES 05/31/2019
76388 06/11/2019 OFFICE DEPOT 282080832001 OFFICE SUPPLIES - CITY CLERK 03/04/2019
E 10-195-245-000-000 555.00
E 10-450-245-000-000 1,110.00
1,665.00
3,530.00
E 10-195-245-000-000 555.00
E 10-450-245-000-000 1,310.00
1,865.00
1590 MAY19 JANITORIAL SERVICES 06/03/2019
E 10-185-256-000-000 141.00
141.00
141.00
76387 06/11/2019 MORAN JANITORIAL SERVICES LLC 1577 APR19 JANITORIAL SERVICES 05/01/2019
76386 06/11/2019 LOMA LINDA ANIMAL HOSPITAL MAY 2019 SRVC MAY 2-3 '19 TREATMENT OF DUCK 05/02/2019
B.5.b
Packet Pg. 38 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-140-250-000-000 789.83
789.83
789.83
E 10-808-235-000-000 250.74
1,327.06
1,327.06
76397 06/14/2019 AVENU MUNISERVICES INV06-006080 BUSINESS LICENSE RENEWAL MAY 2019 05/31/2019
E 10-190-235-000-000 542.37
E 10-450-235-000-000 186.72
E 10-805-235-000-000 347.23
E 10-185-255-000-000 230.00
230.00
230.00
76396 06/14/2019 AT AND T MAY 2019 AT&T MAY 2019 AT&T 06/01/2019
E 10-120-230-000-000 41.62
41.62
214.42
76395 06/14/2019 ANIMAL EMERGENCY CLINIC #166I/166J/166L/AFTER HOURS VET SVCS #166I/166J/166M 06/03/2019
E 69-120-230-000-000 172.80
172.80
157 VINYL STICKER PATCHES FOR JUN 2019 COMM 06/05/2019
E 16-175-255-100-000 2,142.00
2,142.00
2,142.00
76394 06/14/2019 411 PRINTING INC 151 SPONSERSHIP BANNER FOR 2019 COMMUNITY 05/24/2019
E 10-175-250-000-000 840.00
840.00
840.00
76393 06/11/2019 WILLDAN 00415234 PUBLIC WORKS INSPECTION/REVIEW SVCS 04/16/2019
76392 06/11/2019 TKE ENGINEERING INC 2018-767 INSPECTION SVCS - DOG PARK 12/19/2018
B.5.b
Packet Pg. 39 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
B 10-022-71-00 105.21
105.21
105.21
E 10-120-250-000-000 9,500.00
9,500.00
9,500.00
76404 06/14/2019 EYEMED FIDELITY SECURITY LIFE 163909370 JUNE 2019 EMPLOYEE PAID VISION INSURANC 05/21/2019
E 10-370-230-000-000 126.52
126.52
263.14
76403 06/14/2019 CREATIVE MANAGEMENT SOLUTIONS CR13MAY2019 COMPENSATION STUDY 05/13/2019
E 10-125-230-000-000 136.62
136.62
30448 PLANNING DEPT ADVERTISING 05/23/19 05/21/2019
E 10-190-235-000-000 1,322.02
1,322.02
1,322.02
76402 06/14/2019 CITY NEWSPAPER GROUP 30491 ORDINANCE 325- 2ND READING 06/06/19 05/30/2019
E 10-120-220-000-000 133.00
133.00
133.00
76401 06/14/2019 CENTURYLINK 80719562 MAY 2019 PHONE & INTERNET SRVCS 05/17/2019
E 10-190-226-000-000 96.00
96.00
96.00
76400 06/14/2019 GILMAN CARVER 101 MUSIC AND MOVIES IN THE PARK EVENT 15JUN 06/14/2019
E 10-120-250-000-000 4,280.35
4,280.35
4,280.35
76399 06/14/2019 CA STATE DEPT OF JUSTICE 377582 MAY 2019 FINGERPRINTING 06/05/2019
76398 06/14/2019 JEFF K BILLS 36619 PROFESSIONAL CONSULTING SERVICES CM E 06/06/2019
B.5.b
Packet Pg. 40 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
B 10-017-00-00 1,400.00
1,400.00
1,400.00
E 49-473-700-000-000 10,821.00
10,821.00
37,272.00
76409 06/14/2019 ICMA 2019-2020 COGT 2019-2020 MEMEBERSHIP RENEWAL #579567 IC 06/01/2019
E 49-473-700-000-000 26,451.00
26,451.00
JOB #1917, PB #PROJECT ADMIN & PRELIM DESIGN 04/30/2019
E 10-140-250-000-000 1,178.50
1,178.50
1,178.50
76408 06/14/2019 HIRSCH AND ASSOCIATES INC JOB #1917, PB #PROJECT ADMIN & PRELIM DESIGN 03/31/2019
E 10-175-257-000-000 25,000.00
25,000.00
52,093.01
76407 06/14/2019 HDL COREN CONE 0031456-IN CONTRACT SERVICES PROPERTY TAX FY2018 06/05/2019
E 10-175-257-010-000 27,093.01
27,093.01
45364-REVISED CONCRETE WORK REPAIR CURB, GUTTER, SID 04/04/2019
E 10-190-224-000-000 210.00
210.00
210.00
76406 06/14/2019 HARDY AND HARPER INC 45375 EMERGENCY ROAD WORK 04/01/2019
76405 06/14/2019 FOX OCCUPATIONAL MEDICAL CTR 106904 MEDICAL SVCS/PHYSICALS 06/05/2019
B.5.b
Packet Pg. 41 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
48922
E 10-450-238-000-000 1,158.00
E 16-510-238-000-000 5,487.47
10,041.40
10,041.40
E 10-172-238-000-000 61.97
E 10-175-238-000-000 61.98
E 10-190-238-000-000 3,271.98
E 16-510-236-000-000 2,011.00
2,011.00
2,011.00
76412 06/14/2019 SO CA EDISON COMPANY MAY 2019 EDISO MAY 2019 ENERGY USAGE 05/31/2019
435.00
23,975.00
76411 06/14/2019 SECURITY LINES US 1511 STREET CAMERA REPAIRS AND MAINT 02/27/2019
1,043.75
49269 APR19 COMMERCE WAY PROJECT MGMT 05/07/2019
E 46-900-326-020-000 435.00
1,447.50
49937 APR19 COMMERCE WAY REAL ESTATE 05/29/2019
E 46-900-325-010-000 1,043.75
2,751.25
50136 MAY19 COMMERCE WAY PROJECT MGMT 06/06/2019
E 46-900-326-020-000 1,447.50
E 46-900-326-020-000 4,625.00
4,625.00
MAR19 COMMERCE REAL ESTATE 04/16/2019
E 46-900-325-010-000 2,751.25
E 10-172-250-000-000 6,280.00
6,280.00
48861 MAR19 COMMERCE WAY PROJECT MGMT 04/15/2019
E 10-172-250-000-000 7,392.50
7,392.50
48698 MAR BLDG & SAFETY SVCS 04/11/2019
76410 06/14/2019 INTERWEST CONSULTING GROUP 49390 APR BLDG & SAFETY SVCS 05/10/2019
B.5.b
Packet Pg. 42 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-805-238-000-000 19.11
19.11
307.12
E 10-805-238-000-000 73.91
73.91
0156711052519 MAY19-JUNE19 INTERNET SRVCS 05/25/2019
E 10-190-238-000-000 104.12
104.12
0153825052319 MAY19-JUNE19 INTERNET SRVCS 05/25/2019
E 10-190-238-000-000 109.98
109.98
0197046051619 MAY19-JUNE19 INTERNET SRVCS 05/16/2019
E 10-120-220-000-000 706.00
706.00
706.00
76417 06/14/2019 TIME WARNER CABLE 0228510052519 MAY19-JUNE19 INTERNET SRVCS 05/25/2019
E 10-120-220-000-000 360.00
360.00
360.00
76416 06/14/2019 SWANK MOTION PICTURES INC RG 162094 MUSIC & MOVIES IN THE PARK 3AUG2019/17AU 05/20/2019
76415 06/14/2019 STARLIGHT 052019 MUSIC & MOVIES IN THE PARK 15JUNE2019 06/01/2019
E 10-190-238-000-000 34.99
E 10-805-238-000-000 279.78
314.77
314.77
E 10-805-238-000-000 70.84
691.74
691.74
76414 06/14/2019 SPARKLETTS 9637116 050119 MAY 19 BOTTLED WATER 06/01/2019
E 10-175-272-000-000 7.80
E 10-185-272-000-000 5.20
E 10-190-238-000-000 607.90
76413 06/14/2019 SO CA GAS COMPANY MAY19-JUNE19 MAY19-JUNE19 NATURAL GAS USAGE 06/07/2019
B.5.b
Packet Pg. 43 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
144626
E 10-172-250-100-000 455.00
E 16-175-255-100-000 1,134.00
1,134.00
002-20954 PLAN CHECK AND REVIEW SVCS FY2018-19 WO 05/01/2019
E 10-172-250-100-000 1,955.00
1,955.00
00415287 PUBLIC WORKS INSPECTION/REVIEW SVCS TH 05/10/2019
1,491.73
1,491.73
76422 06/14/2019 WILLDAN 002-20953 PLAN CHECK AND REVIEW SVCS FY2018-19 05/01/2019
E 10-175-272-000-000 616.13
E 10-185-272-000-000 253.80
E 65-425-272-000-000 621.80
E 10-175-220-000-000 1,818.54
1,818.54
1,818.54
76421 06/14/2019 WEX BANK 59639287 MAY-JUN19 VEHICLE FUEL CHEVRON 06/06/2019
538.00
29,402.00
76420 06/14/2019 WEST COAST LIGHTS AND SIRENS 18070 VEHICLE LIGHTING INSTALLATION 03/15/2019
9,676.00
148409 MAY19 CITYWIDE TREE MAINTENANCE FY2018 05/31/2019
E 20-100-245-000-000 538.00
E 20-100-245-000-000 19,188.00
19,188.00
JAN19 CITYWIDE TREE MAINTENANCE FY2018-01/31/2019
E 20-100-245-000-000 9,676.00
E 10-190-235-000-000 190.05
190.05
190.05
76419 06/14/2019 WEST COAST ARBORISTS INC 145376 FEB19 CITYWIDE TREE MAINTENANCE FY2018-02/28/2019
76418 06/14/2019 VERIZON WIRELESS 9830819869 ALPR CARD LINE CHARGES 04/24-5/23 05/23/2019
B.5.b
Packet Pg. 44 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-185-210-000-000 OFFICE SUPPLIES 480.11
E 10-172-270-000-000 VEHICLE SUPPLIES 36.00
E 10-175-210-000-000 OFFICE SUPPLIES 98.07
E 10-175-272-000-000 VEHICLE SUPPLIES 73.11
E 10-140-265-000-000 CAL CPA MEMBER 535.00
E 10-140-270-000-000 GFOA CONF SUPPLIES 96.88
E 10-172-210-000-000 ADOBE LIC FEE 14.99
E 10-125-210-000-000 OFFICE SUPPLIES 43.17
E 10-125-265-000-000 NATL NOTARY MEMB 69.00
E 10-125-270-000-000 OFFICE SUPPLIES 1,068.76
E 10-120-250-000-000 EVENT RENTALS 16.00
E 10-120-265-000-000 ICMA MEMBERSHIP 400.00
E 10-120-270-000-000 GFOA CONF MTRLS 94.55
E 10-110-270-000-000 SCAG CONFERENCE 318.00
E 10-120-210-000-000 SB SUN SUBSCRIP 10.00
E 10-120-220-000-000 EVENT MTRLS & SUPP 1,067.05
E 10-140-250-000-000 1,484.67
1,484.67
1,484.67
76426 06/23/2019 ARROWHEAD CREDIT UNION MAY 2019 VISA MAY 2019 VISA CHARGES 06/02/2019
E 10-120-230-000-000 224.64
224.64
224.64
76425 06/23/2019 ACCOUNTEMPS 53686596 ACCOUNTING SERVICES 06/19/2019
E 10-120-220-000-000 360.00
360.00
360.00
76424 06/23/2019 411 PRINTING INC 153 MUSIC & MOVIES IN THE PARK KIOSK POSTERS 05/24/2019
E 10-172-250-100-000 378.00
378.00
3,922.00
76423 06/14/2019 STARLIGHT MOVIE NIGHTS 052019 MUSIC & MOVIES IN THE PARK 06/10/2019
455.00
00415288 PLAN CHECK AND REVIEW SVCS FY2018-19 TH 05/10/2019
B.5.b
Packet Pg. 45 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-120-250-000-000 4,000.00
4,000.00
4,000.00
E 10-185-255-000-000 1,630.74
1,630.74
1,630.74
76431 06/23/2019 CREATIVE MANAGEMENT SOLUTIONS 06/15/2019 CMS COMPENSATION STUDY~06/15/2019
E 10-190-238-000-000 335.22
335.22
335.22
76430 06/23/2019 COUNTY OF RIVERSIDE AN0000001657 SHELTERING SVCS FOR ANML CTRL~06/07/2019
E 10-125-230-000-000 462.70
462.70
462.70
76429 06/23/2019 COLTON PUBLIC UTILITIES JAN31-MAR29 S JAN31-MAR29 SEWER BILLING 06/10/2019
E 10-380-250-000-000 600.00
600.00
600.00
76428 06/23/2019 CITY NEWSPAPER GROUP 30328 ORDINANCE NO. 324- 2ND READING 04/26/2019
E 69-120-230-000-000 COMM DAY SUPPLIES 48.00
10,584.74
10,584.74
76427 06/23/2019 BENSON PRODUCTIONS 1292 VIDEOGRAPHY SERVICES JUNE 06/10/2019
E 16-900-257-000-000 PATCHING MTRLS 210.92
E 65-425-220-000-000 BUS VOICE MESS SUB 15.09
E 69-120-220-000-000 COMM DAY MATERIALS 4,096.07
E 10-450-245-000-000 PARK SUPPLIES 564.20
E 10-805-220-000-000 OFFICE SUPPLIES 128.64
E 10-805-245-000-000 MTRLS & SUPPLIES 319.93
E 10-195-245-000-000 FACILITIES SUPPLIES 372.57
E 10-370-210-000-000 EVENT MATERIALS 76.50
E 10-370-268-000-000 CONF REGISTRATION 289.00
E 10-190-210-000-000 OFFICE SUPPLIES 13.13
E 10-190-250-000-000 MATERIALS & SUPPLIES 30.00
B.5.b
Packet Pg. 46 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-140-210-000-000 436.06
436.06
E 10-190-212-000-000 633.58
633.58
307745728001 OFFICE SUPPLIES - FINANCE 26-APR-19 04/26/2019
E 10-190-212-000-000 1,957.89
1,957.89
308401187001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 05/02/2019
E 10-625-220-000-000 1,720.26
1,720.26
1,720.26
76437 06/23/2019 OFFICE DEPOT 299461785001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 04/09/2019
76436 06/23/2019 LYNN MERRILL 19-6 FEB-APR19 NPDES SERVICES 05/15/2019
B 10-017-00-00 212.57
B 10-022-66-00 793.79
1,006.36
1,006.36
E 46-400-276-000-000 300.00
300.00
300.00
76435 06/23/2019 LINCOLN NATIONAL LIFE INSURANC LCLN JULY2019 JULY LIFE/AD&D/DEP LIFE/WI/LTD 07/1-07/31/20 06/10/2019
75.00
75.00
76434 06/23/2019 HR GREEN PACIFIC INC 123739 INSPECTION AND PLAN CHECK SVCS 12/28/2018
E 10-175-246-000-000 25.00
E 10-195-247-000-000 25.00
E 10-450-246-000-000 25.00
E 22-425-305-000-000 10,000.00
10,000.00
10,000.00
76433 06/23/2019 HIGH TECH SECURITY SYSTEMS 130324 JUN19 FIRE ALARM MONITORING & MAINTENAN 05/01/2019
76432 06/23/2019 FAMILY SERVICES ASSOCIATION 06-2019-001 PROVISION FOR SENIOR MEALS AT SENIOR CE 03/21/2019
B.5.b
Packet Pg. 47 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
303961854001
B 10-017-00-00 4,370.00
4,370.00
4,370.00
4.96
3,450.91
76438 06/23/2019 ON SITE COMPUTING 53006484 IT SERVICES - JULY 2019 06/12/2019
6.89
303961855001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 04/16/2019
E 10-190-210-000-000 4.96
8.50
303951678001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 04/16/2019
E 10-190-210-000-000 6.89
45.24
303955397001 OFFICE SUPPLIES - FINANCE 16-APR-19 04/16/2019
E 10-140-210-000-000 8.50
E 10-190-210-000-000 45.49
45.49
OFFICE SUPPLIES - FINANCE 16-APR-19 04/16/2019
E 10-140-210-000-000 45.24
E 10-140-210-000-000 60.22
60.22
303940632001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 04/16/2019
E 10-140-210-000-000 60.30
60.30
301357766001 OFFICE SUPPLIES - FINANCE 11-APR-19 04/11/2019
E 10-190-210-000-000 85.45
85.45
281439137001 OFFICE SUPPLIES - FINANCE 01-MAR-19 03/01/2019
E 10-190-210-000-000 106.33
106.33
294924601001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 03/29/2019
293742356001 PAPER, INK, AND KITCHEN SUPPLIES FY2018-1 03/27/2019
B.5.b
Packet Pg. 48 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 16-900-220-000-000 72.70
72.70
E 16-900-220-000-000 95.80
95.80
520190302 JUN19 UNDERGROUND DIGGING FY2018-19 06/01/2019
E 10-805-238-000-000 278.22
278.22
278.22
76444 06/23/2019 UNDERGROUND SERVICE ALERT 420190300 MAY19 UNDERGROUND DIGGING FY2018-19 05/01/2019
E 10-190-238-000-000 78.00
78.00
78.00
76443 06/23/2019 TIME WARNER CABLE 0007245060719 SR CTR CABLE INTERNET BLDG3 - 6/7-7/6 06/07/2019
76442 06/23/2019 SPARKLETTS 16179154 060819 JUNE 2019 WATER FILTRATION SYSTEM RENTA 06/06/2019
E 10-195-245-000-000 416.15
E 10-450-245-000-000 1,664.62
2,080.77
2,080.77
E 10-185-268-000-000 83.64
83.64
83.64
76441 06/23/2019 SITEONE LANDSCAPE SUPPLY 88928286-001 FERTILIZER FOR PARKS AND CITY HALL 02/06/2019
608.89
608.89
76440 06/23/2019 LISSETTE RAYAS MILEAGE REIMB MILEAGE REIMBURSEMENT FOR COD ENFORC 06/10/2019
R 10-200-10 115.00
R 10-450-01 100.00
R 10-600-05 150.00
E 10-190-226-000-000 51.00
E 10-195-245-000-000 2.89
R 10-200-05 190.00
76439 06/23/2019 PETTY CASH 06202019 PC REPLENISH PETTY CASH APR-JUNE 2019 06/20/2019
B.5.b
Packet Pg. 49 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
3,558.84
E 10-195-245-000-000 89.00
E 10-450-245-000-000 901.00
E 10-805-245-000-000 2,568.84
76446 06/23/2019 WESTERN EXTERMINATORS CO 6820828 FEB19 PEST CONTROL SERVICES FY2018-19 02/28/2019
E 10-185-235-000-000 246.32
E 16-510-236-000-000 379.18
1,090.59
2,181.57
1,090.98
9831148380 VERIZON CELL PHONE/MODEM SVCS 5/2-6/1 06/01/2019
E 10-175-240-000-000 465.09
E 10-175-240-000-000 465.70
E 10-185-235-000-000 246.32
E 16-510-236-000-000 378.96
E 16-900-220-000-000 44.65
44.65
415.21
76445 06/23/2019 VERIZON WIRELESS 9829169794 VERIZON CELL PHONE/MODEM SVCS 4/2-5/1 05/01/2019
E 16-900-220-000-000 45.87
45.87
220190298 MAR19 UNDERGROUND DIGGING FY2018-19 03/01/2019
E 16-900-220-000-000 45.87
45.87
18DSBFEE2660 JUN19 CA STATE FEE FOR REGULATORY COST 06/01/2019
E 16-900-220-000-000 45.87
45.87
18DSBFEE2051 MAY19 CA STATE FEE FOR REGULATORY COS 05/01/2019
E 16-900-220-000-000 64.45
64.45
18DSBFEE1442 APR19 CA STATE FEE FOR REGULATORY COST 04/01/2019
320190296 APR19 UNDERGROUND DIGGING FY2018-19 04/01/2019
B.5.b
Packet Pg. 50 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-190-235-000-000 1,322.01
1,322.01
1,322.01
E 10-120-220-000-000 100.00
100.00
100.00
76450 06/28/2019 CENTURYLINK 81634609 JUNE 2019 PHONE & INTERNET SRVCS 06/17/2019
E 10-380-250-000-000 700.00
700.00
1,900.00
76449 06/28/2019 GILMAN CARVER 102 MUSIC & MOVIES IN THE PARK 29JUNE2019 06/16/2019
E 10-380-250-000-000 1,200.00
1,200.00
1296 VIDEOGRAPHY SRVCS 09JUNE2019 06/09/2019
E 10-120-250-000-000 4,280.35
4,280.35
4,280.35
76448 06/28/2019 BENSON PRODUCTIONS 1293 VIDEOGRAPHY SRVC 05JUNE2019 06/26/2019
76447 06/25/2019 JEFF K BILLS 36619 PROFESSIONAL CONSULTING SERVICES CM E 06/06/2019
E 10-195-245-000-000 89.00
E 10-805-245-000-000 63.00
152.00
4,323.84
E 10-195-245-000-000 94.00
E 10-805-245-000-000 67.00
161.00
6974198 APR19 PEST CONTROL SERVICES FY2018-19 04/30/2019
E 10-805-245-000-000 363.00
452.00
7059722 MAY19 PEST CONTROL SERVICES FY2018-19 05/31/2019
6884437 MAR19 PEST CONTROL SERVICES FY2018-19 03/31/2019
E 10-195-245-000-000 89.00
B.5.b
Packet Pg. 51 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-450-245-000-000 123.98
123.98
E 10-450-245-000-000 129.25
129.25
92049413 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/24/2019
E 10-450-245-000-000 164.01
164.01
92045931 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/12/2019
E 10-450-245-000-000 165.55
165.55
92043505 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/05/2019
E 10-175-210-000-000 35.66
35.66
35.66
76456 06/28/2019 FRUIT GROWERS SUPPLY 92048967 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/23/2019
E 22-425-312-000-000 2,174.66
2,174.66
2,174.66
76455 06/28/2019 FEDEX 6-512-95019 DELIVERY SERVICES TKG#786150496124 04/05/2019
E 10-175-250-000-000 4,069.00
4,069.00
4,069.00
76454 06/28/2019 FAMILY SERVICES ASSOCIATION 05-2019-040 MAY19 SENIOR CENTER COORDINATOR 05/31/2019
E 10-120-250-000-000 1,500.00
1,500.00
1,500.00
76453 06/28/2019 EVAN BROOKS ASSOCIATES 19003-10 JAN-FEB19 MT VERNON SAFETY IMPROVEMEN 03/14/2019
E 10-185-218-000-000 218.62
218.62
218.62
76452 06/28/2019 CREATIVE MANAGEMENT SOLUTIONS 06082019 CMS COMPENSATION STUDY 08JUNE2019 06/08/2019
76451 06/28/2019 COMPUTERIZED EMBROIDERY CO INC 36260 UNIFORMS FOR ANIMAL CONTROL/CODE ENFO 11/15/2018
B.5.b
Packet Pg. 52 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
92049546
E 49-473-700-000-000 5,151.00
5,151.00
5,151.00
5.15
779.65
76457 06/28/2019 HIRSCH AND ASSOCIATES INC 1917 DESIGN & CONSTRUCTION MGMT- BLUE MTN T 05/31/2019
9.77
92046545 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/05/2019
E 10-450-245-000-000 5.15
11.73
92055600 BUILDING AND MAINT. SUPPLIES FY 2018-19 05/14/2019
E 10-450-245-000-000 9.77
E 10-450-245-000-000 13.74
13.74
BUILDING AND MAINT. SUPPLIES FY 2018-19 04/24/2019
E 10-450-245-000-000 11.73
E 10-450-245-000-000 22.73
22.73
92048601 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/22/2019
E 10-450-245-000-000 23.20
23.20
92049801 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/25/2019
E 10-450-245-000-000 25.11
25.11
92050638 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/27/2019
E 10-450-245-000-000 34.98
34.98
92045814 BUILDING AND MAINT. SUPPLIES FY 2018-19 04/12/2019
E 10-450-245-000-000 50.45
50.45
92056026 BUILDING AND MAINT. SUPPLIES FY 2018-19 06/28/2019
92057713 BUILDING AND MAINT. SUPPLIES FY 2018-19 05/22/2019
B.5.b
Packet Pg. 53 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
39.64
91.15
322576542001 OFFICE SUPPLIES - BLDG & SFTY, PUBLIC WOR 05/31/2019
E 10-370-210-000-000 39.64
113.46
307924354001 OFFICE SUPPLIES - BLDG & SFTY, PUBLIC WOR 04/27/2019
E 10-370-210-000-000 91.15
E 10-172-210-000-000 11.16
E 10-185-210-000-000 61.44
E 10-370-210-000-000 40.86
E 10-120-265-000-000 85.00
85.00
85.00
76462 06/28/2019 OFFICE DEPOT 322576543001 OFFICE SUPPLIES - BLDG & SFTY, PUBLIC WOR 05/31/2019
E 10-110-142-000-000 513.54
513.54
513.54
76461 06/28/2019 MMASC MMASC 2019 MMASC MEMBERSHIP RENEWAL 2019 06/25/2019
E 10-370-250-000-000 2,983.50
2,983.50
7,568.50
76460 06/28/2019 DARCY MCNABOE JULY-2019 DM HEALTH REIMBURSEMENT DM JULY-2019 06/01/2019
E 10-955-800-108-000 4,585.00
4,585.00
31156 KTUA BARTON RD STREETSCAPE 06/13/2019
E 10-172-250-000-000 6,863.75
6,863.75
6,863.75
76459 06/28/2019 KTUA 31157 KTUA FOR PROJECT MANAGEMENT - MICHIGA 06/13/2019
76458 06/28/2019 INTERWEST CONSULTING GROUP 50079 PLAN REVIEW AND DEPUTY OFFICIAL SVCS 06/05/2019
B.5.b
Packet Pg. 54 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-195-245-000-000 196.93
196.93
E 10-195-245-000-000 206.22
206.22
90429197-001 IRRIGATION SUPPLIES FY2018-19 04/16/2019
E 10-195-245-000-000 250.10
250.10
90694413-001 IRRIGATION SUPPLIES FY2018-19 04/24/2019
E 10-110-142-000-000 135.50
135.50
135.50
76465 06/28/2019 SITEONE LANDSCAPE SUPPLY 91536869-001 IRRIGATION SUPPLIES FY2018-19 05/22/2019
E 52-700-238-002-000 13.18
7,748.57
7,748.57
76464 06/28/2019 SYLVIA ROBLES JULY-2019-SR JULY19 HEALTH INSURANCE REIMB-ROBLES 06/28/2019
E 32-600-307-000-000 348.93
E 32-600-326-000-000 26.36
E 48-600-330-010-000 288.26
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 1,857.21
E 26-600-239-000-000 179.39
E 26-601-239-000-000 53.84
E 10-175-238-000-000 59.31
E 10-190-238-000-000 709.73
E 10-450-238-000-000 4,172.82
6.24
250.49
76463 06/28/2019 RIVERSIDE HIGHLAND WATER CO APR-JUN 2019 R APR-JUN 2019 WATER USE 06/05/2019
322575688001 OFFICE SUPPLIES - BLDG & SFTY, PUBLIC WOR 05/31/2019
E 10-185-210-000-000 6.24
B.5.b
Packet Pg. 55 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
91591209-001
4.07
1,372.72
E 10-195-245-000-000 31.34
31.34
IRRIGATION SUPPLIES FY2018-19 05/23/2019
E 10-195-245-000-000 4.07
E 10-195-245-000-000 44.47
44.47
91554709-001 IRRIGATION SUPPLIES FY2018-19 05/22/2019
E 10-195-245-000-000 46.27
46.27
91671749-001 IRRIGATION SUPPLIES FY2018-19 05/28/2019
E 10-195-245-000-000 48.76
48.76
92094227-001 IRRIGATION SUPPLIES FY2018-19 06/11/2019
E 10-195-245-000-000 56.97
56.97
91588561-001 IRRIGATION SUPPLIES FY2018-19 05/23/2019
E 10-195-245-000-000 137.31
137.31
92064997-001 IRRIGATION SUPPLIES FY2018-19 06/10/2019
E 10-195-245-000-000 160.38
160.38
91904016-001 IRRIGATION SUPPLIES FY2018-19 06/04/2019
E 10-195-245-000-000 189.90
189.90
90549720-001 IRRIGATION SUPPLIES FY2018-19 04/19/2019
91130392-001 IRRIGATION SUPPLIES FY2018-19 05/08/2019
B.5.b
Packet Pg. 56 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
00415198
504.00
E 10-172-250-100-000 1,008.00
1,008.00
PUBLIC WORKS INSPECTION/REVIEW SVCS - T 03/12/2019
E 10-172-250-100-000 504.00
E 10-172-250-100-000 1,170.00
1,170.00
00415136 PUBLIC WORKS INSPECTION/REVIEW SVCS - 2 02/12/2019
E 10-172-250-100-000 1,870.00
1,870.00
002-21095 MAY19 PLAN CHECK AND REVIEW SVCS FY201 06/06/2019
E 20-100-245-000-000 3,492.00
3,492.00
3,492.00
76470 06/28/2019 WILLDAN 002-21104 MAY19 PLAN CHECK/INSPECTION AND REVIEW 06/06/2019
E 10-140-250-000-000 5,600.00
5,600.00
5,600.00
76469 06/28/2019 WEST COAST ARBORISTS INC 147378 APR19 CITYWIDE TREE MAINTENANCE FY2018 04/30/2019
E 10-190-238-000-000 104.12
104.12
104.12
76468 06/28/2019 VAVRINEK TRINE DAY AND CO LLP VT24120 FEE AND COST STUDY~05/31/2019
E 10-120-220-000-000 360.00
360.00
720.00
76467 06/28/2019 TIME WARNER CABLE 0197046061619 CITY HALL CABLE - CITY HALL 06/16-7/15 06/16/2019
E 10-120-220-000-000 360.00
360.00
052019B MUSIC & MOVIES IN THE PARK 29JUNE2019 06/10/2019
76466 06/28/2019 STARLIGHT MOVIE NIGHTS 052019A MUSIC & MOVIES IN THE PARK 20JULY2019 06/20/2019
B.5.b
Packet Pg. 57 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-140-250-000-000 1,178.50
1,178.50
1,178.50
E 10-125-230-000-000 462.70
462.70
462.70
76474 06/30/2019 HINDERLITER DE LLAMAS ASSOC 0031456-IN 2ND QUARTER SALES TAX MONITORING SRVC 06/05/2019
E 10-190-212-000-000 322.19
322.19
875.29
76473 06/30/2019 CITY NEWSPAPER GROUP 30612 RESOLUTION NO 2019-15 06/25/2019
E 10-190-212-000-000 553.10
553.10
097117048 MAY19 5955 COPIER LEASE AND IMPRINTS FY2 06/01/2019
E 10-110-142-000-000 677.50
677.50
677.50
76472 06/28/2019 XEROX CORPORATION 097117049 MAY19 W7970 COPIER LEASE AND IMPRINTS F 06/01/2019
252.00
5,560.00
76471 06/28/2019 DOUG WILSON FEB19-JUN19-DW MEDICAL INSURANCE FEB2019-JUNE2019 06/26/2019
252.00
00415137 PUBLIC WORKS INSPECTION/REVIEW SVCS - T 02/12/2019
E 10-172-250-100-000 252.00
504.00
00415135 PUBLIC WORKS INSPECTION/REVIEW SVCS - C 02/12/2019
E 10-172-250-100-000 252.00
00415233 PUBLIC WORKS INSPECTION/REVIEW SVCS 04/16/2019
E 10-172-250-100-000 504.00
B.5.b
Packet Pg. 58 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
E 10-195-245-000-000 93.68
93.68
E 10-195-245-000-000 19.00
E 10-450-245-000-000 86.14
105.14
8302773 SUPPLIES FOR CITY HALL 02/04/2019
E 10-450-245-000-000 105.52
105.52
2300618 SUPPLIES FOR CITY HALL AND PARKS 04/01/2019
E 10-450-245-000-000 107.62
107.62
3014494 PAIN FOR BATHROOMS, IRRIGATION SUPPLIES 03/11/2019
E 10-195-245-000-000 142.25
E 10-450-245-000-000 48.86
191.11
8030630 SUPPLIES FOR PARKS 03/06/2019
E 10-195-245-000-000 19.96
278.04
2311556 SUPPLIES FOR CITY HALL AND PARKS 03/22/2019
278.14
2282872 SUPPPLIES FOR COMMUNITY DAY 04/11/2019
E 10-120-220-000-000 258.08
306.16
1033712 SUPPLIES FOR COMMUNITY DAY 04/12/2019
E 10-120-220-000-000 278.14
422.27
7250351 SUPPLIES FOR PARKS 04/16/2019
E 10-450-245-000-000 306.16
E 10-185-219-000-000 206.56
E 10-195-245-000-000 198.91
E 10-450-245-000-000 16.80
76475 06/30/2019 HOME DEPOT CREDIT SERVICE 9012060 SUPPLIES FOR CITYHALL, PARKS AND ANIMAL 02/13/2019
B.5.b
Packet Pg. 59 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
4273340
E 10-370-250-000-000 1,031.25
1,031.25
1,031.25
E 10-450-245-000-000 11.49
11.49
2,198.83
76476 06/30/2019 JH DOUGLAS AND ASSOCIATES 04302019-JHD HOUSING CONSULTANT SERVICES~04/30/2019
E 10-450-245-000-000 16.99
16.99
8034938 SUPPLIES FOR FITNESS PARK 04/25/2019
E 10-450-245-000-000 23.68
23.68
8013237 SUPPLIES FOR FITNESS PARK 04/25/2019
E 10-450-245-000-000 25.86
25.86
9274260 SUPPLIES FOR PICO PARK 05/24/2019
E 10-450-245-000-000 37.64
37.64
6030073 DRILL BIT FOR MAINTENANCE 02/26/2019
E 69-120-220-000-000 38.80
38.80
3023662 SUPPLIES FOR BLUE MTN WALK 03/01/2019
E 10-450-245-000-000 53.67
73.63
273651 SUPPLIES FOR COMMUNITY DAY 05/13/2019
E 10-195-245-000-000 83.06
83.06
SUPPLIES FOR CITY HALL AND PARKS 05/09/2019
E 10-195-245-000-000 19.96
3020298 ROOF TOP REPAIR MATERIALS FOR CITY HALL 01/30/2019
B.5.b
Packet Pg. 60 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
330183210001
Total Checks:445,405.00
E 10-185-250-000-000 2,031.25
2,031.25
2,031.25
E 10-805-238-000-000 19.11
19.11
203.00
76480 06/30/2019 WILLDAN 00221140 MAY19 CODE ENFORCEMENT OFFICER FY2018 06/18/2019
E 10-805-238-000-000 73.91
73.91
0156711062519 SR CENTER TV - CLUB HOUSE 06/25-07/24 06/25/2019
E 10-190-238-000-000 109.98
109.98
0153825062319 SR CENTER INTERNET HSD3 06/23/2019
61.20
394.60
76479 06/30/2019 TIME WARNER CABLE 0228510062519 CITY HALL INTERNET - TWC BC 06/25-07/24 06/25/2019
74.05
329976624001 KITCHEN SUPPLIES FY2018-19 06/17/2019
E 10-190-210-000-000 61.20
E 10-190-212-000-000 259.35
259.35
OFFICE SUPPLIES - CITY CLERK 06/17/2019
E 10-125-210-000-000 74.05
E 10-370-250-000-000 1,007.50
1,007.50
1,007.50
76478 06/30/2019 OFFICE DEPOT 323050206001 INK SUPPLIES FY2018-19 06/03/2019
76477 06/30/2019 MICHAEL BAKER INTERNATIONAL 1051742 JUN19 ENVIRONMENTAL STUDY FY18-19 06/18/2019
B.5.b
Packet Pg. 61 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
Invoice #Check TotalCheck #Date Vendor Invoice Description
Check Register
CITY OF GRAND TERRACE
As of 6/30/2019
Inv. Date Amount
P id
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.
B.5.b
Packet Pg. 62 Attachment: B - Check Register No. 06302019 [Revision 1] (Approval of June Check Register No.
AGENDA REPORT
MEETING DATE: July 23, 2019 Council Item
TITLE: April 2019 Monthly Financial Report
PRESENTED BY: Cynthia Fortune, Assistant City Manager
RECOMMENDATION: Receive and file the April 2019 Monthly Financial Report.
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:
The attached Monthly Financial Report (MFR) is for the period ending April 30, 2019.
The purpose of the MFR is to identify actual revenues received and expenditures
incurred for the relevant period and compare them to the Approved Budget.
The Fiscal Year (FY) 2018-19 Approved Budget amounts are presented in the attached
MFR for reference purposes. Any adjustments to the Approved Budget that may occur
during the fiscal year will also be reflected in the report. The “expected” revenues
reflect an analysis of revenue receipts that have, hist orically, been received as of this
month in the fiscal year. The resulting positive or negative variances shown in the MFR
are in comparison to these “expected” receipts.
REVENUE RECEIPTS
Some revenues are received consistently within the fiscal year, h owever, not
necessarily on a monthly basis. The largest sources of revenue are shown below with
their revenue cycles:
1. Property Tax (encompasses almost 36% of the General Fund’s revenue sources
at $1.9m), the bulk of which is received twice a year: Decembe r/January and
May/June of each fiscal year.
2. Residual Receipts from the Redevelopment Property Tax Trust Fund (RPTTF),
encompasses almost 20% of the General Fund’s revenue at $1m, is also
received in December/January and May/June each fiscal year.
3. Sales Tax (encompasses about 14% of the General Fund revenue sources at
$770k), although is received monthly, the first month’s (July) allocation is not
received until September of the fiscal year; however, by the end of the fiscal year
(June) the remaining months’ allocation, which would be April, May and June, are
B.6
Packet Pg. 63
received and recorded by June 30th of the fiscal year.
4. Franchise Fees (encompasses almost 10% of the General Fund’s revenue
sources) are received from the following companies:
Payee
Revenue
Receipt
Cycle
Burrtec Waste Industries Monthly
AT & T Quarterly
Charter Communications/Spectrum Quarterly
Riverside Highland Water Co Annually
Southern California Edison Annually
Southern California Gas Co Annually
EXPENDITURES
When reviewing the charts that provide the current monthly status of both revenues and
expenditures, it is helpful to bear in mind that some of the fluctuations from month to
month may be due to the following:
1. Invoices were not submitted to the City in a timely manner; and
2. Invoices may have required further review by the authorizing department.
The analysis and reporting provided is intended to keep the City Council informed
regarding the City’s financial position relative to the budget, and to identify any financial
issues or concerns that arise during the fiscal year so appropriate and timely action can
be taken in response to these developments.
In addition, the MFR contains charts that compare actual receipts and expenditures
against expected and approved budgets. Each category ha s 2 charts:
1. the 1st chart shows the actual receipts or expenditures incurred for the current
fiscal year (FY2018-19) and is compared to the prior year (2017-18) actuals; and
2. the 2nd chart shows the total annual amounts incurred, for the current year, the
prior year and is compared to the “expected” amounts for the current year.
DISCUSSION:
On March 26, 2019, in conjunction with the January-2019 Monthly Financial Report, the
City Council was provided with the FY2018-19 Mid-Year and Year-End Projections.
Operating revenues for the current year are expected to decrease by $121,785;
likewise, year-end operating expenditures are projected to be $114,389 less than
budget, resulting in a projected minimal gain of $104.
B.6
Packet Pg. 64
In order to provide a more meaningful mo nthly report in relation to year-end projections,
the monthly financial report below has been revised and provides the following
information by column:
1. Approved Budget (the General Fund Adopted Budget with any additional
appropriations approved by City Council throughout the year);
2. Adjustments (increases or decreases projected by City staff to reflect year -end
projections);
3. Year-End Projections (highlighted in yellow);
4. Expected Receipts/Allocations based on Approved Budget (with 8 months into
the Fiscal Year, receipts and expenditures are expected between 60% and 65%);
5. Monthly Actuals (cumulative actuals as of February 28, 2019) – highlighted in
light green; and
6. Variance (cumulative actuals vs. expected receipts/allocations).
Operating Revenues
As of April 30, 2019, General Fund operating revenues received were $3,418,971, or
61.4% of the approved budget of $5,570,044; however, revenues expected by this time
were 64.0% of the approved budget, resulting in an overall revenue deficit of ($42,789).
As stated in the Mid-Year/Year-End Projections staff report, revenues will continue to
decrease throughout the remainder of the year.
Operating Expenditures
General Fund operating expenditures through April 30, 2019 were $3,853,705, which
represents 71.2% of the approved expenditures of $5,562,544. With 83.3% of the fiscal
year elapsed through April, this shows a savings of $121,177 against the expected
budget of $3,974,882.
The table below summarizes the General Fund’s revenue and expenditure report as of
April 30, 2019.
Table 1
City of Grand Terrace
FY2018-19 Monthly Financial Report
For the Period ending April 30, 2019
Approved
Budget
Projected
Adj.
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Actual
%
Appr
Bdgt
Var.
(actuals
from
exp.)
REVENUES
Property Tax $1,980,000 ($3,700) $1,976,300 $962,490 48.7% $965,352 48.8% $2,862
Residual
Receipts -
RPTTF $1,090,000 $1,100 $1,091,100 $850,770 78.0% $851,038 78.1% $268
B.6
Packet Pg. 65
City of Grand Terrace
FY2018-19 Monthly Financial Report
For the Period ending April 30, 2019
Approved
Budget
Projected
Adj.
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Actual
%
Appr
Bdgt
Var.
(actuals
from
exp.)
Residual
Receipts -
Housing $60,000 ($60,000) $0 $0 $0 0.0% $0
Franchise Fees $524,300 ($9,300) $515,000 $268,020 52.0% $244,374 46.6% (23,646)
Licenses, Fees &
Permits $421,078 ($44,998) $376,080 $341,370 90.8% $282,813 67.2% (58,557)
Sales Tax $770,000 $0 $770,000 $488,820 63.5% $477,135 62.0% (11,685)
Proceeds from
Sale of Property $80,000 $0 $80,000 $0 0.0% $0 0.0% $0
Intergov’t
Revenue/Grants $26,500 ($6,500) $20,000 $26,500 132% $28,622 108% $2,122
Charges for
Services $136,600 ($5,200) $131,400 $100,870 76.8% $89,011 65.2% (11,859)
Fines &
Forfeitures $62,500 $13,900 $76,400 $51,830 67.8% $50,689 81.1% ($1,141)
Miscellaneous $89,714 ($78,114) $11,600 $41,738 359% $35,734 39.8% ($6,004)
Use of Money &
Property $27,000 $16,400 $43,400 $27,000 62.2% $73,475 272% $46,475
Transfers In $2,352 $48 $2,400 $2,352 98.0% $2,379 101% $27
Waste Water
Receipts $300,000 $18,350 $318,350 $300,000 94.2% $318,349 106% $18,349
TOTAL
REVENUES $5,570,044 ($158,014) $5,412,030 $3,461,760 64.0% $3,418,971 61.4% (42,789)
EXPENDITURES
Salaries $1,148,831 $7,799 $1,156,630 $819,370 70.8% $806,444 69.7% $12,926
Benefits $713,690 ($26,100) $687,590 $529,960 77.1% $516,366 75.1% $13,594
Prof./Contractual
Services $3,252,580 ($110,170) $3,142,410 $2,305,840 73.4% $2,218,971 70.6% $86,869
Materials &
Supplies $257,167 ($13,247) $243,920 $192,450 78.9% $182,575 74.9% $9,875
Lease of
Facility/Equip. $8,000 ($510) $7,490 $5,430 72.5% $5,153 68.8% $277
Utilities $143,400 ($8,390) $135,010 $101,810 75.4% $94,909 70.3% $6,901
Overhead Cost
Allocation ($87,450) $0 ($87,450) ($65,574) 75.0% ($65,589) 75.0% $15
Transfers Out $126,326 $0 $126,326 $85,596 67.8% $94,875 75.1% ($9,279)
TOTAL
EXPENDITURES $5,562,544 ($150,618) $5,411,926 $3,974,882 73.4% $3,853,705 71.2% 121,177
REVENUE & EXPENDITURE SUMMARY
REVENUES $5,570,044 ($158,014) $5,412,030 $3,461,760 64.0% $3,418,971 63.2% (42,789)
EXPENDITURES (5,562,544) $150,618 (5,411,926) (3,974,882) 73.4% (3,853,705) 71.2% 121,177
B.6
Packet Pg. 66
City of Grand Terrace
FY2018-19 Monthly Financial Report
For the Period ending April 30, 2019
Approved
Budget
Projected
Adj.
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Actual
%
Appr
Bdgt
Var.
(actuals
from
exp.)
NET $7,500 ($7,396) $104 ($513,122) ($434,734) $78,388
FISCAL IMPACT:
As shown in Table 1, the City’s General Fund is in line with its year-end projections, for
both revenues and expenditures.
There is no fiscal impact to receiving and filing this report.
ATTACHMENTS:
• April-2019 Monthly Financial Report (PDF)
APPROVALS:
Cynthia A. Fortune Completed 07/12/2019 9:11 PM
Finance Completed 07/12/2019 9:12 PM
City Attorney Completed 07/17/2019 9:14 AM
City Manager Completed 07/17/2019 8:14 PM
City Council Pending 07/23/2019 6:00 PM
B.6
Packet Pg. 67
City of Grand Terrace
Monthly Financial Report
For the Period Ending
April 30, 2019
B.6.a
Packet Pg. 68 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
Table of Contents
GENERAL FUND
Revenue Summaries
Revenue Assumptions ........................................................................................... 4
Revenue Monthly Financial Detail ......................................................................... 5
Revenue Monthly History Charts:
Property Tax ................................................................................................... 6
Sales Tax ........................................................................................................ 7
Licenses, Permits & Fees ............................................................................... 8
Franchise Fees ............................................................................................... 9
Expenditure Summaries
Expenditure Assumptions ...................................................................................... 12
Expenditure Monthly Financial Detail by Category ................................................ 13
Expenditure Monthly History Charts:
Salaries ........................................................................................................... 14
Benefits ........................................................................................................... 15
Professional/Contractual Services .................................................................. 16
Materials & Supplies ....................................................................................... 17
B.6.a
Packet Pg. 69 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
GENERAL FUND REVENUE
B.6.a
Packet Pg. 70 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
REVENUE ASSUMPTIONS:
1. Property Tax receipts are usually received twice a year: in December and
May.
2. Residual Receipts – Redevelopment Property Tax Trust Fund (RPTTF)
receipts are received twice a year: June for the July - December period
and January for the January - June period.
3. Franchise Fee receipts are received monthly and quarterly; usually 30 -
45 days after the month or quarter end.
4. Sales Tax receipts are received monthly; the State distributes (advances)
sales tax revenues usually 60 days after the close of the month; then has
a quarterly “true-up.”
5. Waste Water receipts are received annually, usually at the first month of
the fiscal year.
6. All other receipts are based on historical receipt pattern.
7. Sections/Cost Centers are rolled into each Category as follows:
a. Property Tax
b. Residual Receipts
c. Franchise Fees
d. Licenses, Fees and Permits
e. Sales Tax
f. Sales Tax – Economic Development Agreement
g. Proceeds from the Sale of Property
h. Intergovernmental Revenues and/or Grants
i. Charges for Services
j. Miscellaneous Revenues
k. Use of Money and/or Property
l. Wastewater Receipts
B.6.a
Packet Pg. 71 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
Approved
Budget
Projected
Adjustments
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Monthly
Actuals
%
Appr
Bdgt
Variance
(actuals from
expected)
REVENUES
Property Tax $1,980,000 ($3,700)$1,976,300 $962,490 48.7%$965,352 48.8%$2,862
Residual Receipts - RPTTF $1,090,000 $1,100 $1,091,100 $850,770 78.0%$851,038 78.0%$268
Residual Receipts - Housing $60,000 ($60,000)$0 $0 $0 $0
Franchise Fees $524,300 ($9,300)$515,000 $268,020 52.0%$244,374 47.5%($23,646)
Licenses, Fees & Permits $421,078 ($44,998)$376,080 $341,370 90.8%$282,813 75.2%($58,557)
Sales Tax $770,000 $0 $770,000 $488,820 63.5%$477,135 62.0%($11,685)
Proceeds from Sale of Property $80,000 $0 $80,000 $0 0.0%$0 0.0%$0
Intergovernmental Revenue/Grants $26,500 ($6,500)$20,000 $26,500 132.5%$28,622 143.1%$2,122
Charges for Services $136,600 ($5,200)$131,400 $100,870 76.8%$89,011 67.7%($11,859)
Fines & Forfeitures $62,500 $13,900 $76,400 $51,830 67.8%$50,689 66.3%($1,141)
Miscellaneous $89,714 ($78,114)$11,600 $41,738 359.8%$35,734 308.1%($6,004)
Use of Money & Property $27,000 $16,400 $43,400 $27,000 62.2%$73,475 169.3%$46,475
Transfers In $2,352 $48 $2,400 $2,352 98.0%$2,379 99.1%$27
Waste Water Receipts $300,000 $18,350 $318,350 $300,000 94.2%$318,349 100.0%$18,349
TOTAL REVENUES $5,570,044 ($158,014)$5,412,030 $3,461,760 64.0%$3,418,971 61.4%($42,789)
Approved
Budget
Projected
Adjustments
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Monthly
Actuals
%
Appr
Bdgt
Variance
(actuals from
expected)
EXPENDITURES
Salaries $1,148,831 $7,799 $1,156,630 $819,370 70.8%$806,444 69.7%$12,926
Benefits $713,690 ($26,100)$687,590 $529,960 77.1%$516,366 75.1%$13,594
Professional/Contractual Services $3,252,580 ($110,170)$3,142,410 $2,305,840 73.4%$2,218,971 70.6%$86,869
Materials & Supplies $257,167 ($13,247)$243,920 $192,450 78.9%$182,575 74.9%$9,875
Lease of Facility/Equipment $8,000 ($510)$7,490 $5,430 72.5%$5,153 68.8%$277
Utilities $143,400 ($8,390)$135,010 $101,810 75.4%$94,909 70.3%$6,901
Overhead Cost Allocation ($87,450)$0 ($87,450)($65,574)75.0%($65,589)75.0%$15
Transfers Out $126,326 $0 $126,326 $85,596 67.8%$94,875 75.1%($9,279)
TOTAL EXPENDITURES $5,562,544 ($150,618)$5,411,926 $3,974,882 73.4%$3,853,705 71.2%$121,177
Approved
Budget
Projected
Adjustments
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Monthly
Actuals
%
Appr
Bdgt
Variance
(actuals from
expected)
REVENUES $5,570,044 ($158,014)$5,412,030 $3,461,760 64.0%$3,418,971 63.2%($42,789)
EXPENDITURES ($5,562,544)$150,618 ($5,411,926)($3,974,882)73.4%($3,853,705)71.2%$121,177
NET $7,500 ($7,396)$104 ($513,122)($434,734)$78,388
City of Grand Terrace
FY2018-19 Monthly Financial Report
For the Period ending April 30, 2019
REVENUE & EXPENDITURE SUMMARY
B.6.a
Packet Pg. 72 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY REVENUE - Property Tax (2018-19 vs. 2017-18)
$0
$0
$21,623
$4,251
$44,222
$253,252
$578,933
$62,200
$6,415
$126,193
$689,249
$12,972
$0
$2,851
$1,740
$2,461
$51,397
$123,417
$724,339
$51,626
$7,521
$126,555
$0
$0
- 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
1,097,089
1,091,907
962,490
500,000 700,000 900,000 1,100,000 1,300,000 1,500,000 1,700,000 1,900,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
Packet Pg. 73 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY REVENUE - Sales Tax (2018-19 vs. 2017-18)
$0
$0
$88,514
$59,100
$78,800
$55,210
$59,100
$78,800
$37,058
$54,300
$42,854
$219,357
$0
$0
$69,387
$106,874
$60,330
$59,187
$59,729
$86,805
$34,823
$49,745
$0
$0
- 50,000 100,000 150,000 200,000 250,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
$510,882
$526,880
$488,820
- 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
Packet Pg. 74 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY REVENUE - Licenses, Permits & Fees (2018-19 vs. 2017-18)
$20,520
$9,832
$53,817
$36,185
$13,608
$10,846
$36,435
$91,030
$31,270
$26,882
$22,137
$80,243
$12,406
$52,117
$20,886
$25,542
$13,228
$18,052
$71,521
$42,008
$27,054
$26,348
$0
$0
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
$330,425
$309,162
$341,370
- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
Packet Pg. 75 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY REVENUE - Franchise Fees (2018-19 vs. 2017-18)
$0
$0
$23,916
$17,991
$54,405
$18,258
$35,150
$52,017
$15,141
$136,068
$55,162
$102,653
$0
$3,833
$28,619
$44,314
$4,512
$38,255
$49,143
$22,976
$52,722
$131,899
$0
$0
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
$352,946
$376,273
$268,020
- 75,000 150,000 225,000 300,000 375,000 450,000 525,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
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B.6.a
Packet Pg. 77 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
GENERAL FUND EXPENDITURE
BY CATEGORY
B.6.a
Packet Pg. 78 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
EXPENDITURE ASSUMPTIONS:
8. Expenditure appropriations are divided into 12 monthly allocations, with
adjustments made for payroll periods, the timing of debt service
payments, and certain quarterly allocations.
9. Sections/Cost Centers are rolled into each Category as follows:
m. Salaries
n. Benefits
o. Professional/Contractual Services
p. Materials and Supplies
q. Lease of Facilities and/or Equipment
r. Equipment
s. Capital Projects
t. Utilities
u. Debt Services
v. Overhead Cost Allocation
w. Transfers Out
B.6.a
Packet Pg. 79 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
Approved
Budget
Projected
Adjustments
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Monthly
Actuals
%
Appr
Bdgt
Variance
(actuals from
expected)
REVENUES
Property Tax $1,980,000 ($3,700)$1,976,300 $962,490 48.7%$965,352 48.8%$2,862
Residual Receipts - RPTTF $1,090,000 $1,100 $1,091,100 $850,770 78.0%$851,038 78.0%$268
Residual Receipts - Housing $60,000 ($60,000)$0 $0 $0 $0
Franchise Fees $524,300 ($9,300)$515,000 $268,020 52.0%$244,374 47.5%($23,646)
Licenses, Fees & Permits $421,078 ($44,998)$376,080 $341,370 90.8%$282,813 75.2%($58,557)
Sales Tax $770,000 $0 $770,000 $488,820 63.5%$477,135 62.0%($11,685)
Proceeds from Sale of Property $80,000 $0 $80,000 $0 0.0%$0 0.0%$0
Intergovernmental Revenue/Grants $26,500 ($6,500)$20,000 $26,500 132.5%$28,622 143.1%$2,122
Charges for Services $136,600 ($5,200)$131,400 $100,870 76.8%$89,011 67.7%($11,859)
Fines & Forfeitures $62,500 $13,900 $76,400 $51,830 67.8%$50,689 66.3%($1,141)
Miscellaneous $89,714 ($78,114)$11,600 $41,738 359.8%$35,734 308.1%($6,004)
Use of Money & Property $27,000 $16,400 $43,400 $27,000 62.2%$73,475 169.3%$46,475
Transfers In $2,352 $48 $2,400 $2,352 98.0%$2,379 99.1%$27
Waste Water Receipts $300,000 $18,350 $318,350 $300,000 94.2%$318,349 100.0%$18,349
TOTAL REVENUES $5,570,044 ($158,014)$5,412,030 $3,461,760 64.0%$3,418,971 61.4%($42,789)
Approved
Budget
Projected
Adjustments
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Monthly
Actuals
%
Appr
Bdgt
Variance
(actuals from
expected)
EXPENDITURES
Salaries $1,148,831 $7,799 $1,156,630 $819,370 70.8%$806,444 69.7%$12,926
Benefits $713,690 ($26,100)$687,590 $529,960 77.1%$516,366 75.1%$13,594
Professional/Contractual Services $3,252,580 ($110,170)$3,142,410 $2,305,840 73.4%$2,218,971 70.6%$86,869
Materials & Supplies $257,167 ($13,247)$243,920 $192,450 78.9%$182,575 74.9%$9,875
Lease of Facility/Equipment $8,000 ($510)$7,490 $5,430 72.5%$5,153 68.8%$277
Utilities $143,400 ($8,390)$135,010 $101,810 75.4%$94,909 70.3%$6,901
Overhead Cost Allocation ($87,450)$0 ($87,450)($65,574)75.0%($65,589)75.0%$15
Transfers Out $126,326 $0 $126,326 $85,596 67.8%$94,875 75.1%($9,279)
TOTAL EXPENDITURES $5,562,544 ($150,618)$5,411,926 $3,974,882 73.4%$3,853,705 71.2%$121,177
Approved
Budget
Projected
Adjustments
Year-End
Projection Expected
Exp
%
Year-
End
Proj
Monthly
Actuals
Monthly
Actuals
%
Appr
Bdgt
Variance
(actuals from
expected)
REVENUES $5,570,044 ($158,014)$5,412,030 $3,461,760 64.0%$3,418,971 63.2%($42,789)
EXPENDITURES ($5,562,544)$150,618 ($5,411,926)($3,974,882)73.4%($3,853,705)71.2%$121,177
NET $7,500 ($7,396)$104 ($513,122)($434,734)$78,388
City of Grand Terrace
FY2018-19 Monthly Financial Report
For the Period ending April 30, 2019
REVENUE & EXPENDITURE SUMMARY
B.6.a
Packet Pg. 80 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY EXPENDITURE - Salaries (2018-19 vs. 2017-18)
$66,937
$71,036
$72,118
$74,895
$81,917
$81,473
$79,799
$81,029
$144,411
$77,682
$93,700
$243,924
38,969
127,439
86,038
88,542
88,975
85,148
122,833
83,997
84,504
80,973
-
-
- 50,000 100,000 150,000 200,000 250,000 300,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
$831,298
$887,417
$819,370
- 200,000 400,000 600,000 800,000 1,000,000 1,200,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
Packet Pg. 81 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY EXPENDITURE - Benefits (2018-19 vs. 2017-18)
$36,304
$31,335
$51,895
$30,422
$37,067
$61,608
$68,806
$32,072
$54,407
$40,120
$62,544
$87,091
37,786
53,468
63,643
50,681
51,633
62,054
83,582
51,082
62,437
39,467
-
-
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
2018-19 Actuals 2017-18 Actuals
$444,035
$555,833
$529,960
- 100,000 200,000 300,000 400,000 500,000 600,000 700,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
Packet Pg. 82 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY EXPENDITURE - Professional Services (2018-19 vs. 2017-18)
$174,419
$377,949
$98,339
$218,638
$242,541
$418,300
$89,633
$250,175
$273,665
$61,679
$350,121
$513,343
8,266
408,302
273,779
267,427
297,564
126,907
390,494
222,121
224,111
322,124
-
-
- 100,000 200,000 300,000 400,000 500,000 600,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
2,205,336
2,541,095
2,305,840
- 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
Packet Pg. 83 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
MONTHLY EXPENDITURE - Materials & Supplies (2018-19 vs. 2017-18)
$6,330
$14,683
$9,918
$16,956
$27,712
$12,478
$14,761
$11,860
$15,755
$14,193
$21,535
$74,136
1,749
10,088
31,650
30,079
25,406
32,280
8,588
28,598
14,138
8,545
-
-
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
2018-19 Actuals 2017-18 Actuals
$144,646
$191,121
$192,450
- 50,000 100,000 150,000 200,000 250,000
FY2017-18 Actuals
FY2018-19 Actuals
FY2018-19 Expected
FY2017-18 Actuals FY2018-19 Actuals FY2018-19 Expected
B.6.a
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Packet Pg. 85 Attachment: April-2019 Monthly Financial Report (Monthly Financial Report for April-2019)
AGENDA REPORT
MEETING DATE: July 23, 2019 Council & Successor Agency Item
TITLE: Annual Financial Report for the Year Ended June 30, 2018
PRESENTED BY: Cynthia Fortune, Assistant City Manager
RECOMMENDATION: Receive and file the Annual Financial Report and related
documents for the year ended June 30, 2018.
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, 201 8
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, 2018 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:
• Audit Overview Letter (Exhibit B)
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Packet Pg. 86
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 FY2017-18, one misstatement was identified in relation to the
accrual of design costs of Commerce Way and is explained in the next section.
• 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:
Accounts Payable Accrual
The Auditors noted that an expense incurred in FY2017-18 (June-2018), paid in
the following fiscal year (October-2018), was recorded as an expense of FY2018-
19, past the City’s cut-off date for payables. The auditors determined that this
liability should have been properly recognized in the fiscal year in which the
expense was incurred.
Background:
• The City’s standard practice in accruing liabilities for expenditures is to
accrue any invoices received within 60 days after the close of the fiscal
year – meaning any invoices that were received in July-2018 and
August 2019 for expenditures that were incurred in the prior year
(FY2017-18) are recorded as expenditures in FY2017-18. If invoices
for expenditures incurred in FY2017-18 were received after August 31,
2018, they were recorded as an expenditure for the current year
(FY2018-19).
• In FY2017-18, the City began its Commerce Way Street Improvement
Project (construction of the extension of Commerce Way to Taylor
Street, terminating at Main Street), awarding the project management
aspect to Interwest Consulting Group and the design to Albert Webb
and Associates. The project began in September-2017.
• The City received and processed the design consultant’s (Albert Webb
and Associates) invoices for the three-month period (June-2018
B.7
Packet Pg. 87
through August-2018) in October-2018 in the amount of $65,891.15.
Adhering to the City’s past practice, the total amount was recorded as
expenditures occurring in FY2018-19.
Discussion:
• The City’s auditors, during their internal audit review, determined that
the amount of the June-2018 expenditure ($34,616.65 of the
$65,891.15) although processed well after the City’s 60-day cut-off,
should have been accrued back to the FY2017-18 since the amount is
material (significant).
• The Auditors also recommended that in addition to adhering to its
standard 60-day accrual, the City needs to review disbursements /
expenditures that are material to the fund. In this case, this activity
affected the Capital Projects Street Improvement Fund (Fund 46).
• Staff has since corrected the transaction; for future , uncommon
transactions similar to the above, staff will carefully review all invoices
paid after the 60-day accrual and similar types of adjustments
thoroughly and consult with City auditors prior to the ir recordation.
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, 2018.
ATTACHMENTS:
• Exhibit-A - Annual Financial Report Ending June 30, 2018 (PDF)
• Exhibit-B - Audit Communication Letter (PDF)
• Exhibit-C - Report on Internal Control (PDF)
APPROVALS:
Cynthia A. Fortune Completed 07/17/2019 6:24 PM
Finance Completed 07/17/2019 6:24 PM
City Attorney Completed 07/17/2019 8:17 PM
City Manager Completed 07/17/2019 8:23 PM
City Council Pending 07/23/2019 6:00 PM
B.7
Packet Pg. 88
CITY OF GRAND TERRACE
FOR THE FISCAL YEAR ENDED JUNE 30, 2018 ANNUAL FINANCIAL REPORT
B.7.a
Packet Pg. 89 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE, CALIFORNIA
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
B.7.a
Packet Pg. 90 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
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Packet Pg. 91 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS’ REPORT .............................................................................................. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................ 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................... 19
Statement of Activities .......................................................................................................... 20
Fund Financial Statements:
Balance Sheet - Governmental Funds ................................................................................. 22
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position .......................................................................................... 25
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds ......................................................................................... 26
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities .......................................................................................................... 28
Statement of Net Position - Proprietary Funds .................................................................... 29
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds .......................................................................................... 30
Statement of Cash Flows - Proprietary Funds ..................................................................... 31
Statement of Fiduciary Net Position - Fiduciary Funds ........................................................ 32
Statement of Changes in Fiduciary Net Position - Fiduciary Funds .................................... 33
Notes to Financial Statements ............................................................................................. 35
REQUIRED SUPPLEMENTARY INFORMATION
Pension Plan:
Schedule of Proportionate Share of the Net Pension Liability —
Miscellaneous Cost-Sharing Plan ........................................................................................ 67
Schedule of Plan Contributions — Miscellaneous Cost-Sharing Plan .................................... 68
OPEB Plan:
Schedule of Changes in Net OPEB Liability and Related Ratios ............................................ 69
B.7.a
Packet Pg. 92 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
Budgetary Comparison Information:
General Fund ....................................................................................................................... 70
Street Improvement Fund .................................................................................................... 71
Housing Authority ................................................................................................................. 72
Notes to Required Supplementary Information .......................................................................... 73
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds .................................................... 74
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds ................................................... 80
Budgetary Comparison Information – Special Revenue Funds:
Storm Drain Improvement .................................................................................................... 86
Park Development ................................................................................................................ 87
AB 3229 COPS .................................................................................................................... 88
Air Quality Improvement ....................................................................................................... 89
State Gas Tax ...................................................................................................................... 90
Traffic Safety ........................................................................................................................ 91
Facilities Development ......................................................................................................... 92
Measure I ............................................................................................................................. 93
CDBG ................................................................................................................................... 94
Special Districts Landscape and Lighting District ................................................................ 95
Spring Mountain Ranch ........................................................................................................ 96
Senior Bus Program ............................................................................................................. 97
Public, Educational & Government Access.......................................................................... 98
Active Transportation Program ............................................................................................ 99
Enhanced Infrastructure Financing District ........................................................................ 100
Budgetary Comparison Information – Capital Project Funds:
Capital Improvement - Streets ........................................................................................... 101
Capital Projects - Parks ...................................................................................................... 102
Combining Statement of Assets and Liabilities
All Agency Funds ............................................................................................................... 103
Combining Statement of Changes in
Assets and Liabilities – All Agency Funds ......................................................................... 104
B.7.a
Packet Pg. 93 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Grand Terrace, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of Grand Terrace,
California, (the City) as of and for the year ended June 30, 2018, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
B.7.a
Packet Pg. 94 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
To the Honorable Mayor and Members of the City Council
City of Grand Terrace, California
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Grand Terrace, California, as of
June 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof
for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, in 2018 the City adopted new accounting guidance,
GASBS No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions.
Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedules for the General Fund, the Street
Improvement Fund, and the Housing Authority Fund; the schedule of proportionate share of the net
pension liability, the schedule of plan contributions, the schedule of changes in total OPEB liability and
related ratios be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining and individual nonmajor fund financial statements
and schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
2
B.7.a
Packet Pg. 95 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
To the Honorable Mayor and Members of the City Council
City of Grand Terrace, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
June 10, 2019 on our consideration of the City’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over
financial reporting and compliance.
Brea, California
June 10, 2019
3
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Packet Pg. 97 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Management's Discussion and Analysis
The following discussion and analysis of the financial performance of the City of Grand Terrace
provides an overview of the City's financial activities for the fiscal year ended June 30, 2018. The
information presented herein should be considered in conjunctio n with the City’s financial statements
identified in the accompanying table of contents.
Financial Highlights
The assets of the City of Grand Terrace exceeded its liabilities at June 30, 2018 by $20.3
million (net position).
The City’s net position increased by $2.8 million from the previous fiscal year from $17.5
million to $20.3 million. This increase is mostly due to the receipt of the excess 15% 2011
bond proceeds by the General Fund from the Successor Agency to the Grand Terrace
Community Redevelopment Agency as authorized by the Department of Finance.
As of June 30, 2018, the City of Grand Terrace’s governmental funds had reported combined
ending fund balances of $8.1 million, an increase of $2.2 million from the previous fiscal year.
Of this total, approximately $7.3 million, or 91.0% of the total fund balance, are either non-
spendable or restricted due to the nature of the restriction.
The total debt of the City showed a net decrease of about $15,000. During FY 2017-18, while
the CJPIA Retrospective liability and the OPEB obligation decreased, the City’s Net Pension
Liability and Compensated Absences obligation increased by almo st the same amount as the
decrease in the other two categories mentioned. Hence, the net result is the minor decrease
in the City’s total debt.
The General Fund had a year-end fund balance of $3.4 million at June 30, 2018. This was
an increase of $2.5 million and an increase of 267% over FY 2016- 17
Using the Accompanying Financial Statements
Included in the accompanying report are fund financial statements. For governmental activities, the
fund financial statements explain how these services were financed in the short term as well as what
remains for future spending. Fund financial statements also report the City's operations in more
detail than the government-wide statements by providing information about the City's most significant
funds.
Overview of the Financial Statements
The annual report consists of four parts - management's discussion and analysis (this section), the
basic financial statements, required supplementary information and an optional section that presents
combining statements for nonmajor governmental funds. The basic financial statements include two
kinds of statements that present different views of the City:
The first two statements are government-wide financial statements that provide both long-
term and short-term information about the City's overall financial status.
5
B.7.a
Packet Pg. 98 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
The remaining statements are fund financial statements that focus on individual parts of the
City government, reporting the City's operations in more detail than the government-wide
statements.
The governmental funds statements explain how general government services like public
safety were financed in the short term as well as what remains for future spending.
Proprietary funds statements offer short and long-term financial information about the
activities the government operates like a business.
Fiduciary fund statements provide information about the fiduciary relationships - like the
agency funds of the City - in which the City acts solely as agent or trustee for the benefit of
others, to whom the resources in question belong.
The financial statements also include notes that provide additional explanatory information regarding
the financial statements, as well as more detailed data. The statements are followed by a section of
required supplementary spreadsheets that provide additional financial and budgetary information.
Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present
financial data for the City as a whole. The Statement of Net Position and the Statement of Activities
report information about the City as a whole and about its activities. The statement of net position
includes all of the City’s assets and liabilities, as well as any deferred outflows and inflows. The
statement of activities includes all current year revenues and expenses regardless of when cash is
received. These statements include all assets and liabilities using the accrual basis of accounting,
which is similar to the accounting used by most private-sector companies.
These two statements report the City's net position and changes in net position that transpired during
the fiscal year. The City's net position - the difference between assets and liabilities is one way to
measure the City's financial health, or financial position. Over time, increases and decreases in the
City's net position are one indicator of whether its financial health is improving or deteriorating.
Other nonfinancial factors, however, should also be considered such as changes in the City's
property tax or sales tax base and the condition of the City's roads, to assess the overall health of
the City.
The Statement of Net Position and the Statement of Activities are divided into two types of activities:
Governmental activities - Most of the City's basic services such as public safety, public
works, community development, and general government are reported here. Sales taxes,
property taxes, state subventions, and other revenues finance most of these activities.
Business-type activity - The Waste Water Disposal Fund accounts for the remaining assets
and liabilities of the fund that used to account for the provision of waste water disposal
services to the residents and businesses within the City of Grand Terrace. The City of Colton/
Colton Utility Authority now provide waste water disposal services for the City’s residents and
businesses.
6
B.7.a
Packet Pg. 99 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Reporting the City's Most Significant Funds
The fund financial statements provide detailed information about the City's most significant funds -
not the City as a whole. Some funds are required to be established by State law or by bond
covenants. However, the City establishes many other funds to help it control and manage financial
resources for particular purposes or to demonstrate that it is meeting oversight responsibilities for
using certain taxes, grants, or other money. The City's two types of funds - governmental and
proprietary - use different accounting approaches.
Governmental funds - Most of the City's basic services are reported in governmental funds,
which focus on how money flows into and out of those funds and the balances remaining at
year end that are available for spending. These funds are reported using the modified accrual
accounting method, which measures cash and all other current financial assets that can
readily be converted to cash. The governmental fund statements provide a detailed short-
term view of the City's general government operations and the basic services it provides.
Governmental fund information helps to determine whether there are greater or fewer
financial resources that can be spent in the near future to finance the City's programs. Both
the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
Proprietary funds - When the City charges customers for the services it provides, these
services are generally reported in proprietary funds. Proprietary funds are reported in the
same way that all activities are reported in the Statement of Net Position and the Statement
of Activities. In fact, the City's enterprise fund is the same as the business-type activities
reported in the government-wide statements, but provides more detail and additional
information, such as cash flows, for the proprietary fund. The City does not use internal
service funds (the other component of proprietary funds) to report activities that provide
supplies and services for the City's other programs and activities.
Reporting the City's Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and
individuals. These activities are excluded from the City's other financial statements because the City
cannot use these assets to finance its operations. The City is responsible for ensuring that the assets
reported in these funds are used for their intended purposes.
Government-wide Financial Statements
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. At June 30, 2018, net position for the City of Grand Terrace was $20,291,188; compared to
net position of $17,536,715 at June 30, 2017.
7
B.7.a
Packet Pg. 100 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
A summary of the government-wide Statement of Net Position at June 30, 2018 and June 30, 2017
are as follows:
Table 1
Net Position
'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐƵƐŝŶĞƐƐͲƚLJƉĞĐƚŝǀŝƚŝĞƐdŽƚĂů
ϮϬϭϴϮϬϭϳϮϬϭϴϮϬϭϳϮϬϭϴϮϬϭϳ
ƵƌƌĞŶƚĂŶĚŽƚŚĞƌĂƐƐĞƚƐϵ͕ϳϯϯ͕ϯϰϯϳ͕ϵϲϭ͕ϴϲϬϭ͕ϰϱϯ͕ϬϮϰϭ͕ϰϯϱ͕ϬϴϬϭϭ͕ϭϴϲ͕ϯϲϳϵ͕ϯϵϲ͕ϵϰϬ
ĂƉŝƚĂůĂƐƐĞƚƐ͕ŶĞƚϭϭ͕ϵϮϯ͕ϯϱϳϭϭ͕ϴϵϯ͕Ϭϵϯϰ͕ϳϬϴ͕Ϯϲϴϰ͕ϳϵϲ͕ϴϯϴϭϲ͕ϲϯϭ͕ϲϮϱϭϲ͕ϲϴϵ͕ϵϯϭ
dŽƚĂůĂƐƐĞƚƐϮϭ͕ϲϱϲ͕ϳϬϬϭϵ͕ϴϱϰ͕ϵϱϯϲ͕ϭϲϭ͕ϮϵϮϲ͕Ϯϯϭ͕ϵϭϴϮϳ͕ϴϭϳ͕ϵϵϮϮϲ͕Ϭϴϲ͕ϴϳϭ
ĞĨĞƌƌĞĚKƵƚĨůŽǁƐĨŽƌ
WĞŶƐŝŽŶϭ͕Ϯϰϰ͕ϱϵϭϭ͕ϭϰϯ͕ϮϴϱͲͲϭ͕Ϯϰϰ͕ϱϵϭϭ͕ϭϰϯ͕Ϯϴϱ
KƚŚĞƌůŝĂďŝůŝƚŝĞƐϭ͕ϰϳϯ͕Ϯϭϰϭ͕ϵϰϳ͕ϵϯϴϲ͕ϴϳϱϲ͕ϴϳϱϭ͕ϰϴϬ͕Ϭϴϵϭ͕ϵϱϰ͕ϴϭϯ
>ŽŶŐͲƚĞƌŵůŝĂďŝůŝƚŝĞƐϲ͕ϯϵϲ͕ϮϮϴϲ͕ϰϭϭ͕ϭϭϳͲͲϲ͕ϯϵϲ͕ϮϮϴϲ͕ϰϭϭ͕ϭϭϳ
dŽƚĂůůŝĂďŝůŝƚŝĞƐϳ͕ϴϲϵ͕ϰϰϮϴ͕ϯϱϵ͕Ϭϱϱϲ͕ϴϳϱϲ͕ϴϳϱϳ͕ϴϳϲ͕ϯϭϳϴ͕ϯϲϱ͕ϵϯϬ
ĞĨĞƌƌĞĚŝŶĨůŽǁƐĨŽƌWĞŶƐŝŽŶϴϵϱ͕Ϭϳϴϭ͕ϯϮϳ͕ϱϭϭͲͲϴϵϱ͕Ϭϳϴϭ͕ϯϮϳ͕ϱϭϭ
EĞƚŝŶǀĞƐƚŵĞŶƚŝŶĐĂƉŝƚĂů
ĂƐƐĞƚƐϭϭ͕ϵϮϯ͕ϯϱϳϭϭ͕ϴϵϯ͕Ϭϵϯϰ͕ϳϬϴ͕Ϯϲϴϰ͕ϳϵϲ͕ϴϯϴϭϲ͕ϲϯϭ͕ϲϮϱϭϲ͕ϲϴϵ͕ϵϯϭ
ZĞƐƚƌŝĐƚĞĚϳ͕Ϯϵϵ͕ϭϳϴϱ͕ϯϱϱ͕ϯϰϮͲͲϳ͕Ϯϵϵ͕ϭϳϴϱ͕ϯϱϱ͕ϯϰϮ
hŶƌĞƐƚƌŝĐƚĞĚ;ϱ͕Ϭϴϱ͕ϳϲϰͿ;ϱ͕ϵϯϲ͕ϳϲϯͿϭ͕ϰϰϲ͕ϭϰϵϭ͕ϰϮϴ͕ϮϬϱ;ϯ͕ϲϯϵ͕ϲϭϱͿ;ϰ͕ϱϬϴ͕ϱϱϴͿ
dŽƚĂůŶĞƚƉŽƐŝƚŝŽŶΨϭϰ͕ϭϯϲ͕ϳϳϭΨϭϭ͕ϯϭϭ͕ϲϳϮΨϲ͕ϭϱϰ͕ϰϭϳΨϲ͕ϮϮϱ͕ϬϰϯΨϮϬ͕Ϯϵϭ͕ϭϴϴΨϭϳ͕ϱϯϲ͕ϳϭϱ
$16,631,625 (82%) of the net position reflects the City's investment in capital assets. Since these
assets are used to provide services to the citizens they are not available for future spending. An
additional $7,299,178 (36%) represents resources that are subject to external restrictions on how
they may be used. The unrestricted net position resulted in a negative amount of $3,639,615 (-18%)
mainly due to the net pension liability of over $5 million that the City has to account for as part of the
City’s Statement of Net Position.
8
B.7.a
Packet Pg. 101 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
A summary of the government-wide Statement of Activities for the year ended June 30, 2018 and
2017 are as follows:
Table 2
Changes in Net Position
'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐƵƐŝŶĞƐƐͲƚLJƉĞĐƚŝǀŝƚŝĞƐdŽƚĂů
ϮϬϭϴϮϬϭϳϮϬϭϴϮϬϭϳϮϬϭϴϮϬϭϳ
ZĞǀĞŶƵĞƐĂŶĚƚƌĂŶƐĨĞƌƐ
WƌŽŐƌĂŵƌĞǀĞŶƵĞƐ͗
ŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐ ΨϵϬϰ͕ϰϬϮΨϮ͕ϯϳϴ͕ϬϮϵ ΨͲ ΨϯϬϬΨϵϬϰ͕ϰϬϮ ΨϮ͕ϯϳϴ͕ϯϮϵ
KƉĞƌĂƚŝŶŐĐŽŶƚƌŝďƵƚŝŽŶƐ
ĂŶĚŐƌĂŶƚƐ ϯ͕ϯϴϬ͕ϯϱϵϳϬϱ͕ϰϰϰ Ͳ Ͳϯ͕ϯϴϬ͕ϯϱϵ ϳϬϱ͕ϰϰϰ
ĂƉŝƚĂůĐŽŶƚƌŝďƵƚŝŽŶƐ
ĂŶĚŐƌĂŶƚƐ ϯϴϬ͕ϬϮϵϮϴϳ͕ϮϮϵ Ͳ ͲϯϴϬ͕ϬϮϵ Ϯϴϳ͕ϮϮϵ
'ĞŶĞƌĂůƌĞǀĞŶƵĞƐ͗
WƌŽƉĞƌƚLJƚĂdž Ϯ͕ϵϰϯ͕ϳϯϲϮ͕ϲϲϵ͕ϱϭϯ Ͳ ͲϮ͕ϵϰϯ͕ϳϯϲ Ϯ͕ϲϲϵ͕ϱϭϯ
^ĂůĞƐƚĂdž ϳϮϴ͕ϴϵϯϴϱϮ͕ϮϮϯ Ͳ ͲϳϮϴ͕ϴϵϯ ϴϱϮ͕ϮϮϯ
DŽƚŽƌǀĞŚŝĐůĞŝŶůŝĞƵ ϲ͕ϱϰϲϱ͕ϱϭϳ Ͳ Ͳϲ͕ϱϰϲ ϱ͕ϱϭϳ
KƚŚĞƌƚĂdžĞƐ ϱϯϯ͕ϯϴϯϱϬϴ͕ϱϯϰ Ͳ Ͳϱϯϯ͕ϯϴϯ ϱϬϴ͕ϱϯϰ
hƐĞŽĨŵŽŶĞLJΘƉƌŽƉĞƌƚLJ ϰϯϲ͕Ϯϵϵϯϰϵ͕ϲϰϮ ϭϳ͕ϵϰϰ ϲ͕ϵϵϮϰϱϰ͕Ϯϰϯ ϯϱϲ͕ϲϯϰ
KƚŚĞƌƌĞǀĞŶƵĞƐ ϮϮ͕ϬϱϱϲϬ͕ϴϴϳ Ͳ ͲϮϮ͕Ϭϱϱ ϲϬ͕ϴϴϳ
dŽƚĂůƌĞǀĞŶƵĞƐ
ĂŶĚƚƌĂŶƐĨĞƌƐϵ͕ϯϯϱ͕ϳϬϮϳ͕ϴϭϳ͕Ϭϭϴ ϭϳ͕ϵϰϰ ϳ͕ϮϵϮϵ͕ϯϱϯ͕ϲϰϲ ϳ͕ϴϮϰ͕ϯϭϬ
džƉĞŶƐĞƐ
'ĞŶĞƌĂůŐŽǀĞƌŶŵĞŶƚ ϭ͕ϭϬϬ͕ϲϮϵϰ͕ϵϭϬ͕ϵϰϵ Ͳ Ͳϭ͕ϭϬϬ͕ϲϮϵ ϰ͕ϵϭϬ͕ϵϰϵ
WƵďůŝĐƐĂĨĞƚLJ Ϯ͕ϭϱϮ͕ϭϴϰϮ͕Ϭϵϭ͕ϭϲϬ Ͳ ͲϮ͕ϭϱϮ͕ϭϴϰ Ϯ͕Ϭϵϭ͕ϭϲϬ
WƵďůŝĐǁŽƌŬƐ Ϯ͕ϭϵϭ͕ϵϭϯϮ͕ϳϯϱ͕ϱϭϲ Ͳ ͲϮ͕ϭϵϭ͕ϵϭϯ Ϯ͕ϳϯϱ͕ϱϭϲ
ĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚ ϭϭ͕ϰϳϮϯϰ͕ϭϯϲ Ͳ Ͳϭϭ͕ϰϳϮ ϯϰ͕ϭϯϲ
ƵůƚƵƌĂůĂŶĚƌĞĐƌĞĂƚŝŽŶ ϭ͕ϯϳϯ͕ϯϭϴϮ͕ϳϬϵ͕ϵϵϰ Ͳ Ͳϭ͕ϯϳϯ͕ϯϭϴ Ϯ͕ϳϬϵ͕ϵϵϰ
/ŶƚĞƌĞƐƚŽŶůŽŶŐͲƚĞƌŵ
ĚĞďƚϱ͕ϭϰϬϮ͕ϲϱϭ Ͳ Ͳϱ͕ϭϰϬ Ϯ͕ϲϱϭ
tĂƐƚĞǁĂƚĞƌĚŝƐƉŽƐĂů ͲͲ ϴϴ͕ϱϳϬ ϴϴ͕ϱϳϬϴϴ͕ϱϳϬ ϴϴ͕ϱϳϬ
dŽƚĂů džƉĞŶƐĞƐϲ͕ϴϯϰ͕ϲϱϲϭϮ͕ϰϴϰ͕ϰϬϲ ϴϴ͕ϱϳϬ ϴϴ͕ϱϳϬϲ͕ϵϮϯ͕ϮϮϲ ϭϮ͕ϱϳϮ͕ϵϳϲ
ŚĂŶŐĞŝŶŶĞƚƉŽƐŝƚŝŽŶ Ϯ͕ϱϬϭ͕Ϭϰϲ;ϰ͕ϲϲϳ͕ϯϴϴͿ ;ϳϬ͕ϲϮϲͿ ;ϴϭ͕ϮϳϴͿϮ͕ϰϯϬ͕ϰϮϬ ;ϰ͕ϳϰϴ͕ϲϲϲͿ
ĞŐŝŶŶŝŶŐŶĞƚƉŽƐŝƚŝŽŶ ϭϭ͕ϯϭϭ͕ϲϳϮϭϱ͕ϵϴϰ͕ϬϲϬ ϲ͕ϮϮϱ͕Ϭϰϯ ϲ͕ϯϬϲ͕ϯϮϭϭϳ͕ϱϯϲ͕ϳϭϱ ϮϮ͕ϮϵϬ͕ϯϴϭ
ZĞƐƚĂƚĞŵĞŶƚŽĨEĞƚWŽƐŝƚŝŽŶ ϯϮϰ͕Ϭϱϯ;ϱ͕ϬϬϬͿ Ͳ ͲϯϮϰ͕Ϭϱϯ ;ϱ͕ϬϬϬͿ
ŶĚŝŶŐŶĞƚƉŽƐŝƚŝŽŶΨϭϰ͕ϭϯϲ͕ϳϳϭΨϭϭ͕ϯϭϭ͕ϲϳϮ Ψϲ͕ϭϱϰ͕ϰϭϳ Ψϲ͕ϮϮϱ͕ϬϰϯΨϮϬ͕Ϯϵϭ͕ϭϴϴ Ψϭϳ͕ϱϯϲ͕ϳϭϱ
The increase or decrease in net position can provide an indication as to whether the overall financial
position of the City improved or worsened during the year. The total net position of the City
increased by $2,754,473 or 15.7% during the fiscal year. This increase was mainly due to a transfer
to the City of $2.8 million by the Successor Agency to the Grand Terrace Community
Redevelopment Agency of the excess 15% of the 2011 bond proceeds to the City’s General Fund,
as authorized by the Department of Finance. Taken separately, the net position of governmental
activities increased by $2,825,099 while the net position of business-type activities decreased by
$70,626. Total expenses of $ 6,923,226 were offset by total revenues of $ 9,353,646. In the
Statement of Activities, expenditures do not include the cost of assets capitalized during the year or
payments made on principal of outstanding debt. Depreciation is shown for governmental funds on
this table, but the expense is not recorded in each individual fund.
9
B.7.a
Packet Pg. 102 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
After the deduction of capitalized assets, the next largest component in changes to net position is the
actual increase or decrease in fund balances resulting from operations. For governmental funds
there was a net increase of $ 2,207,789. Of this amount, a net increase of $ 868,749 is attributable to
the Nonmajor Governmental Funds, a net decrease of $153,915 to the Child Care Center Fund, a
net decrease of $8,900 to the Housing Authority Fund, a net decrease of $949,578 to the Street
Improvement Fund, with the difference being a net increase to the General Fund of $2,451,433.
Governmental Activities
The following table shows the cost of each of the City’s major programs and their net cost after
subtracting fees and other direct revenue generated by the activities. The net cost reflects the
financial burden that was placed on the City taxpayers by each of the programs.
Net Cost of Governmental Activities
ϮϬϭϴ ϮϬϭϳ
dŽƚĂůŽƐƚŽĨ
^ĞƌǀŝĐĞƐ
EĞƚŽƐƚŽĨ
^ĞƌǀŝĐĞƐ
dŽƚĂůŽƐƚŽĨ
^ĞƌǀŝĐĞƐ
EĞƚŽƐƚŽĨ
^ĞƌǀŝĐĞƐ
'ĞŶĞƌĂůŐŽǀĞƌŶŵĞŶƚ Ψϭ͕ϭϬϬ͕ϲϮϵ Ψϳϰϭ͕Ϯϵϲ Ψϰ͕ϵϭϬ͕ϵϰϵ Ψϰ͕ϳϱϬ͕ϲϵϴ
WƵďůŝĐƐĂĨĞƚLJϮ͕ϭϱϮ͕ϭϴϰ ϭ͕ϵϯϬ͕ϬϬϮ Ϯ͕Ϭϵϭ͕ϭϲϬ ϭ͕ϴϰϵ͕ϳϭϰ
WƵďůŝĐǁŽƌŬƐϮ͕ϭϵϭ͕ϵϭϯ ;ϭ͕ϳϵϭ͕ϴϮϵͿ Ϯ͕ϳϯϱ͕ϱϭϲ ϳϳϵ͕ϳϰϯ
ĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚ ϭϭ͕ϰϳϮ ;ϭϲ͕ϭϯϵͿ ϯϰ͕ϭϯϲ Ϯϵ͕ϴϬϴ
ƵůƚƵƌĂůĂŶĚƌĞĐƌĞĂƚŝŽŶ ϭ͕ϯϳϯ͕ϯϭϴ ϭ͕ϯϬϭ͕ϯϵϲ Ϯ͕ϳϬϵ͕ϵϵϰ ϭ͕ϳϬϭ͕ϬϵϬ
/ŶƚĞƌĞƐƚŽŶůŽŶŐͲƚĞƌŵ
ĚĞďƚϱ͕ϭϰϬ ϱ͕ϭϰϬ Ϯ͕ϲϱϭ Ϯ͕ϲϱϭ
dŽƚĂůΨϲ͕ϴϯϰ͕ϲϱϲ ΨϮ͕ϭϲϵ͕ϴϲϲ ΨϭϮ͕ϰϴϰ͕ϰϬϲ Ψϵ͕ϭϭϯ͕ϳϬϰ
This table shows the cost of all governmental activities this year was $ 6,834,656. General tax
dollars paid for approximately 61.5 percent of this cost. Fees, grants and contributions and fund
balances at the beginning of the fiscal year funded the balance of the cost of governmental activities.
10
B.7.a
Packet Pg. 103 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Revenues by Source - Governmental Activities $9,335,702
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Expenses by Function - Governmental Activities - $6,834,656
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11
B.7.a
Packet Pg. 104 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Business-Type Activity
In March 2014, the cities of Grand Terrace and Colton entered into sewer services and lease
agreements for fifty (50) years. These agreements extricated Grand Terrace from the waste water
collection business. In accordance with the Sewer Services Agreement with the City of Colton/
Colton Utility Authority, the provision of sewer services for the City’s residents and businesses are no
longer being directly provided by the City of Grand Terrace. Hence, the City of Grand Terrace no
longer receives sewer services revenues from the City’s residents and businesses. Likewise, sewer-
services related expenditures are also no longer being incurred and recorded in the City’s Waste
Water Disposal Fund. The following were the only financial-related activities recorded in the City’s
Waste Water Disposal Fund during FY 2017-18:
• Annual depreciation amounting to $88,570 of all waste water sewer capital assets which are
still owned by the City; and
• Interest income of $17,944 earned by the remaining cash in the Waste Water Disposal Fund.
Expenses and Program Revenues – Business-type Activities
Major Funds
As noted earlier, the City uses fund accounting to provide proper financial management of the City's
resources and to demonstrate compliance with finance-related legal requirements.
Major Governmental Funds:
The General Fund is the main operating fund of the City. At the end of FY 2017-18, the fund
balance of the General Fund increased by $2,451,433 from a fund balance of $ 917,720 at June 30,
2017 to $3,369,153 at June 30, 2018. Total fund balance in all Governmental Funds was
$8,088,574.
0
300,000
600,000
900,000
1,200,000
1,500,000
1,800,000
Waste Water Treatment
Operating Expenses
Operating Revenues
12
B.7.a
Packet Pg. 105 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
The General Fund Revenues and Expenditures are shown below:
Increase
(Decrease) in
2017-2018 2016-2017 Fund Balance
Revenues $ 8,162,060 $ 5,570,613 $ 2,591,447
Expenditures (5,593,196) (6,748,536) 1,155,340
Other Sources (Uses) (117,431) (101,958) (15,473)
Net Change in Fund Balance 2,451,433 (1,279,881) 3,731,314
Beginning Fund Balance 917,720 2,189,411 (1,271,691)
Restatements - 8,190 (8,190)
Ending Fund Balance $ 3,369,153 $ 917,720 $ 2,451,433
The significant highlights in activities, revenues and expenditures of the City's General Fund from the
prior year are as follows:
General Fund revenues and transfers in exceeded expenditures and transfers out by
$2,451,433. Total General Fund revenues increased by $2,591,447 or 46.5 percent from FY
2016-17. This increase in revenues is mainly due to the receipt of the excess 15% 2011
bond proceeds by the General Fund from the Successor Agency to the Grand Terrace
Community Redevelopment Agency as already previously mentioned.
• Property taxes received increased by 12.8 percent from $2,592,716 to $2,924,532, a
difference of about $331,816. This increase in property tax is mainly attributable to the
increase in RPTTF Residual Receipts by $239,000. During the fiscal year, the increase in
Secured Property Taxes provided the remaining additional increase to this category.
• Gross Sales tax decreased by 14.5 percent from $852,223 to $728,893. The City’s Economic
Agreement with One Source ended on June 30, 2017. At the beginning of FY 2017-18, One
Source Relocated to the City of Riverside, resulting in an annual decrease of sales tax
revenue of approximately $160,000.
• Charges for service, including licenses and permits in FY 2017-18 increased by 8.2 percent
from $1,024,284 to $1,107,908. The following are the revenues belonging to this category
that increased most during the fiscal year: Engineering Fees - Other increased by $15,002,
Public Works Permits increased by $33,166, Miscellaneous Planning Fees increased by
$37,189 and Engineering Plan Review increased by $ 13,112.
• Fines and forfeitures received during FY 2017-18 increased by $27,360 or 35.9 percent from
$76,314 during FY 2016-17 to $103,674 during FY 2017-18. The increase in this category
resulted from increased collections of the following General Fund revenues: Parking citations
increased by $18,370, Sweep Day citations increased by $4,162 and Tow charges increased
by $4,255.
13
B.7.a
Packet Pg. 106 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
• The overall operating expenditures of the General Fund decreased by 17 percent over the
prior year - from $6.7 million to $5.6 million. The positive variance of about $1.2 million
between FY 2016-17 and FY 2017-18 were mainly due to the following: the decrease in the
capital outlay category by $668,075 and the decrease in the debt service category. Please
note that the Zion’s Bank loan was paid in full during FY 2016-17.
• The total general government expenditures category showed an increase in expenditures
amounting to $232,508. The public safety category and the public works category also
showed an increase in expenditures by $86,675 and $311,490 respectively. The following
categories had decreased expenditures during FY 2017-18 compared to the previous fiscal
year: Cultural and recreation ($82,988), capital outlay ($668,075), principal payment
($1,021,452) and interest and fiscal charges ($13,498).
• Of the total $5,593,196 in General Fund operating expenditures, total general government
expenditures represented 20.4 percent, public works expenditures represented 26.3 percent,
public safety expenditures represented 36.4 percent and project improvement costs
represented 5.2 percent. The other 11.7 percent represented expenditures relating to cultural
& recreation.
Other major governmental funds include the Street Improvement Fund, the Housing Authority Fund,
and the Child Care Center Fund.
The Street Improvement Fund had a net change of ($949,578) during the fiscal year.
The fund balance of the Housing Authority Fund decreased by $8,900 during FY 2017-18. This fund
accounts for the housing assets as a result of the dissolution of the Community Redevelopment
Agency of the City.
The Child Care Center Fund ended the fiscal year with a net change of ($153,915).
Nonmajor Funds
The Nonmajor funds, as listed in the table of contents of this report, include Gas Tax, Measure I, the
Capital Improvement Funds, and most of the Special Revenue Funds.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In
these cases, the City has a fiduciary responsibility and is acting as trustee. The Statement of
Fiduciary Net Position, included in the Basic Financial Statements, separately reports all of the City’s
fiduciary activities. The City’s fiduciary activities are reported in separate statements of fiduciary net
position and statement of changes in fiduciary net position (Private Purpose Trust Fund- Successor
Agency of the Former RDA only). Fiduciary funds are not reflected in the government- wide financial
statements because the resources of those funds are not available to support the City’s own
programs. However, the City is responsible for ensuring that the assets reported in these funds are
used for their intended purposes.
14
B.7.a
Packet Pg. 107 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Capital Assets
As of June 30, 2018, the City had invested $16,631,625, in a broad range of capital assets, including
buildings, parks and park improvements, computer and maintenance equipment, vehicles, sewer
collection systems, streets, sidewalks and storm drains. The City is exempt by provisions of
Governmental Accounting Standards Board (GASB) Statement No. 34 from including the valuation of
old City infrastructure prior to the implementation of GASB Statement No. 34.
Additional information on the City’s capital assets can be found in the Note 5 of the notes to the
accompanying financial statements.
Capital Assets
(Net of depreciation)
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Long-Term Debt
At the end FY 2017-18, the City had debt outstanding of $6,396,228. The City’s net pension liability
increased by $528,048 from $4,536,720 in the prior fiscal year to $5,064,768 at the end of June 30,
2018. The City’s other post-employment benefits (OPEB) obligations decreased by $453,954 from
$1,619,685 at the end of FY 2016-17 to $1,165,731 at the end of FY 2017-18. The City’s liability for
compensated absences increased by $37,802 compared to the prior fiscal year from $127,927 to
$165,729 at the end of June 30, 2018.
Additional information on the City’s long-term debt can be found in the Note 6 of the notes to the
accompanying financial statements.
15
B.7.a
Packet Pg. 108 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Outstanding Debt
Governmental Activities
2018 2017
/ŶĐƌĞĂƐĞ
;ĞĐƌĞĂƐĞͿ
CJPIA Retrospective Liability $ - $ 126,785 $ (126,785)
OPEB obligation 1,165,731 1,619,685 (453,954)
Net Pension Liability 5,064,768 4,536,720 528,048
Compensated Absences 165,729 127,927 37,802
Total Outstanding Debt $ 6,396,228 $ 6,411,117 $ (14,889)
Economic Factors and Outlook for Future Years
While the City’s economic conditions continues to modestly improve with increases to property
and sales tax revenues, the growth in revenue is being consumed by increases to core service
contracts, which eliminates the City’s ability to increase levels of service. The City of Grand
Terrace fiscal position in 2019 should be considered sustainable (revenue exceeds expenses and
City maintains funds in a reserve account that is the equivalent of two months of expenses).
The City Council has taken some steps to increase revenue and shield the general fund from
being outpaced by expenses. The City entered into a Franchise Agreement with Riverside
Highland Water company and replaced streets lights with more energy efficient LED’s street lights.
Combined, both programs will yield the City an additional $80,000 a year in revenue/savings. The
Council also combined operational programs to yield an additional $50,000 in savings from Animal
Control and Code Enforcement contracts. In addition, the City sold the former child care facility
and used the resources to close out the deficit of the Child Care Fund and paydown some of the
Funds Unfunded Accrued Liability.
While the General Fund requires an annual balancing act each ye ar, the City continues to see
additional revenues materialize for Restricted/Special Purpose Funds. The City Council filed its
last and final Redevelopment Obligations Payment schedule, which allows the City to access
$2,800,000 in bond proceeds. Council is restricted to use the bond proceeds for their original
purpose and a significant amount of the funds will be used for infrastructure and economic
development. The passage of Prop 68 will yield $200,000 for park improvements and SB-1 (Road
Repair and Accountability Act) will allow the City to accelerate the repair of the City’s aging road
infrastructure.
The City will complete liquidation of 90% of housing successor agency properties before the end
of the 2nd quarter of 2019 and place its largest land asset 4.78 acres on Barton Rd into private
developer hands before the close of 2019. The sale of the property should allow the City to
receive over $200,000 in one-time revenues.
The City continues to push its $500,000,000 marketing strategy, the MIDAS (Municipal Investment
in Development to Achieve Success) program which consist of various public and private
economic development partnerships within the City of Grand Terrace. The success of the MIDAS
16
B.7.a
Packet Pg. 109 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
program will be the only way the City will be able to generate a significant boost in sales tax and
property tax revenue to offer enhanced services to residents. There are two distinct commercial
retail areas of the City where the retail growth will occur, Barton Rd. and Commerce Way in the
Gateway Specific Plan area.
Barton Rd. should see approximately 24,000 sq. ft. of retail space come online in 2019 and
generate approximately $50,000 in sales taxes annually and nominal growth in property tax
because most of the retail space will be in existing vacant locations. However, in 2020
approximately 35,000 sq. ft. of new retail space should come online and generate and additional
$55,000 per year in sales tax and $10,000 in property tax. 2021 will see an additional 50,000 sq.
ft. of retail space come online and generate approximately $100,000 in new sales tax and $80,000
in property tax.
While the Gateway Specific Plan is all new construction and the City anticipates significant sales
and property tax to be generated from this area, unlike the properties on Barton Rd., we don’t
have a clear definition of business types and revenue trends to be generated by businesses in the
commercial area at this time.
Grand Terrace has a current population of approximately 12,285 and is the smallest of the Inland
Empire cities in the urban core. The City is geographically located between two of the most
populous cities in the Inland Empire (Riverside and San Bernardino); while largely a bedroom
community, Grand Terrace is in a position to take advantage of the new commercial and housing
renaissance.
Construction of the I-215/Barton Rd. interchange project will be completed in early 2020 and
should allow existing and new retail centers to capture the increase in customers from the
increase in interchange capacity from 28,000 cars per day to over 40,000 cars per day.
The City’s Five-Year Financial Analysis is sustainable, as long as:
¾ Revenue increases outpace annual increases of expenses;
¾ No new programs are implemented without a new source of revenue;
¾ Projects for Barton Rd. retail space materializes.
17
B.7.a
Packet Pg. 110 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
THIS PAGE INTENTIONALLY LEFT BLANK
18
B.7.a
Packet Pg. 111 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 5,517,104$ 578,024$ 6,095,128$
Receivables:
Accounts 149,823 - 149,823
Notes and loans 794,402 - 794,402
Accrued interest 3,656 - 3,656
Internal balances (875,000) 875,000 -
Prepaid costs 3,851 - 3,851
Due from other governments 3,676,341 - 3,676,341
Land held for resale 463,166 - 463,166
Capital assets not being depreciated 3,791,341 - 3,791,341
Capital assets, net of depreciation 8,132,016 4,708,268 12,840,284
Total Assets 21,656,700 6,161,292 27,817,992
Deferred Outflows of Resources:
Deferred pension related items 1,244,591 - 1,244,591
Total Deferred Outflows
of Resources 1,244,591 - 1,244,591
Liabilities:
Accounts payable 464,812 - 464,812
Accrued liabilities 57,302 - 57,302
Deposits payable 4,663 6,875 11,538
Due to other governments 946,437 - 946,437
Noncurrent liabilities:
Due within one year 83,079 - 83,079
Due in more than one year 82,650 - 82,650
OPEB liability 1,165,731 - 1,165,731
Net pension liability 5,064,768 - 5,064,768
Total Liabilities 7,869,442 6,875 7,876,317
Deferred Inflows of Resources:
Deferred pension related items 857,621 - 857,621
Deferred OPEB related items 37,457 - 37,457
Total Deferred Inflows
of Resources 895,078 - 895,078
Net Position:
Invested in capital assets 11,923,357 4,708,268 16,631,625
Restricted for:
Community development projects 2,798,856 - 2,798,856
Public safety 25,124 - 25,124
Public works 4,475,300 - 4,475,300
Dog part endowment 13,017 - 13,017
Unrestricted (5,098,883) 1,446,149 (3,652,734)
Total Net Position 14,136,771$ 6,154,417$ 20,291,188$
JUNE 30, 2018
Primary Government
See Notes to Financial Statements 19
B.7.a
Packet Pg. 112 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 1,100,629$ 218,989$ 140,344$ -$
Public safety 2,152,184 117,624 104,558 -
Economic development 11,472 - 27,611 -
Cultural and recreation 1,373,318 71,922 - -
Public works 2,191,913 495,867 3,107,846 380,029
Interest on long-term debt 5,140 - - -
Total Governmental Activities 6,834,656 904,402 3,380,359 380,029
Business-Type Activities:
Waste Water Disposal 88,570 - - -
Total Business-Type Activities 88,570 - - -
Total Primary Government 6,923,226$ 904,402$ 3,380,359$ 380,029$
General Revenues:
Taxes:
Property taxes, levied for general purpose
Sales taxes
Franchise taxes
Business licenses taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Total General Revenues
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at Beginning of Year, as Restated
Net Position at End of Year
Program Revenues
See Notes to Financial Statements 20
B.7.a
Packet Pg. 113 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
Primary Government
Governmental Business-Type
Activities Activities Total
(741,296)$ -$ (741,296)$
(1,930,002) - (1,930,002)
16,139 - 16,139
(1,301,396) - (1,301,396)
1,791,829 - 1,791,829
(5,140) - (5,140)
(2,169,866) - (2,169,866)
- (88,570) (88,570)
- (88,570) (88,570)
(2,169,866) (88,570) (2,258,436)
2,943,736 - 2,943,736
728,893 - 728,893
449,074 - 449,074
84,309 - 84,309
6,546 - 6,546
436,299 17,944 454,243
22,055 - 22,055
4,670,912 17,944 4,688,856
2,501,046 (70,626) 2,430,420
11,311,672 6,225,043 17,536,715
324,053 - 324,053
11,635,725 6,225,043 17,860,768
14,136,771$ 6,154,417$ 20,291,188$
Net (Expenses) Revenues and Changes in Net
Position
See Notes to Financial Statements 21
B.7.a
Packet Pg. 114 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
General
Assets:
Cash and investments 1,897,340$ 530,645$ 206,732$
Receivables:
Accrued revenue 142,105 - -
Notes and loans receivable 30,785 - 763,617
Interest receivable 3,656 - -
Prepaid costs 3,851 - -
Due from other funds 533,443 9,000 -
Due from other governments 3,026,848 10,197 398,636
Advances to other funds - - 168,205
Land held for resale - - 463,166
Total Assets 5,638,028$ 549,842$ 2,000,356$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 242,684$ -$ -$
Accrued liabilities 57,302 - -
Due to other funds - - -
Due to other governments 925,272 - 21,165
Advances from other funds 1,043,205 - -
Refundable deposits - 4,663 -
Total Liabilities 2,268,463 4,663 21,165
Deferred Inflows of Resources:
Unavailable revenues 412 - 59,519
Total Deferred Inflows of Resources 412 - 59,519
Fund Balances:
Nonspendable:
Prepaid costs 3,851 - -
Notes and loans 30,785 - -
Permanent fund principal - - -
Restricted for:
Community development projects - - 1,919,672
Public safety - - -
Public works - 545,179 -
Infrastructure projects 2,000,000 - -
Committed to:
Committed to contingencies 433,447 - -
Committed to equipment replacement 147,917 - -
Committed to community services 25,417 - -
Committed to additional public safety 294,833 - -
Unassigned 432,903 - -
Total Fund Balances 3,369,153 545,179 1,919,672
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 5,638,028$ 549,842$ 2,000,356$
Street
Improvement Housing Authority
Special Revenue Funds
See Notes to Financial Statements 22
B.7.a
Packet Pg. 115 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Receivables:
Accrued revenue
Notes and loans receivable
Interest receivable
Prepaid costs
Due from other funds
Due from other governments
Advances to other funds
Land held for resale
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Due to other governments
Advances from other funds
Refundable deposits
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs
Notes and loans
Permanent fund principal
Restricted for:
Community development projects
Public safety
Public works
Infrastructure projects
Committed to:
Committed to contingencies
Committed to equipment replacement
Committed to community services
Committed to additional public safety
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special
Revenue Fund
Other Total
Governmental Governmental
Funds Funds
-$ 2,882,387$ 5,517,104$
- 7,718 149,823
- - 794,402
- - 3,656
- - 3,851
- 27,000 569,443
- 240,660 3,676,341
- - 168,205
- - 463,166
-$ 3,157,765$ 11,345,991$
52,890$ 169,238$ 464,812$
- - 57,302
408,995 160,448 569,443
- - 946,437
- - 1,043,205
- - 4,663
461,885 329,686 3,085,862
- 111,624 171,555
- 111,624 171,555
- - 3,851
- - 30,785
- 13,017 13,017
- 879,082 2,798,754
- 25,124 25,124
- 1,930,121 2,475,300
- - 2,000,000
- - 433,447
- - 147,917
- - 25,417
- - 294,833
(461,885) (130,889) (159,871)
(461,885) 2,716,455 8,088,574
-$ 3,157,765$ 11,345,991$
Child Care
Center
See Notes to Financial Statements 23
B.7.a
Packet Pg. 116 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
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24
B.7.a
Packet Pg. 117 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
Fund balances of governmental funds 8,088,574$
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets net of depreciation have not been included as financial resources in
governmental fund activity.
Capital assets 22,157,454$
Accumulated depreciation (10,234,097) 11,923,357
Deferred outflows of resources reported for the pension plan for government-wide
statements are as follows:
Pension contributions made subsequent to the measurement date 391,538
Change in assumptions 653,766
Difference between expected and actual experience 5,269
Net difference between projected and actual earnings on pension plan investments 147,855
Adjustment due to difference in proportions 28,663
Differences in proportionate share 17,500 1,244,591
Compensated absences that have not been included in the governmental activities (165,729)
Governmental funds report all OPEB contributions as expenditures, however in the
statement of net position, the excess of the total OPEB liability over the plan fiduciary
net position is reported as a net OPEB liability.(1,165,731)
Governmental funds report all pension contributions as expenditures, however, in the
statement of net position, the excess of the plan proportionate share of the total pension
liability over the proportionate share of the plan fiduciary net position is reported as a
net pension liability.(5,064,768)
Deferred inflows of resources reported for government-wide statements are amortized:
Pension related items:
Change in assumptions (49,850)
Difference between expected and actual experience (75,489)
Adjustment due to difference in proportions (584,957)
Differences in proportionate share (147,325)
OPEB related items:
Change in assumptions (37,457) (895,078)
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.171,555
Net Position of Governmental Activities 14,136,771$
See Notes to Financial Statements 25
B.7.a
Packet Pg. 118 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
General
Revenues:
Taxes 3,653,425$ -$ -$
Intergovernmental 42,306 10,197 -
Charges for services 1,107,908 40,283 -
Use of money and property 380,713 11,587 685
Fines and forfeitures 103,674 - -
Contributions 2,857,416 - -
Miscellaneous 16,618 - -
Total Revenues 8,162,060 62,067 685
Expenditures:
Current:
General government 1,139,654 - -
Public safety 2,035,986 - -
Public works 1,468,238 - -
Economic development - - 9,585
Cultural and recreation 654,253 - -
Capital outlay:
Project improvement costs 289,925 - -
Debt service:
Interest and fiscal charges 5,140 - -
Total Expenditures 5,593,196 - 9,585
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,568,864 62,067 (8,900)
Other Financing Sources (Uses):
Transfers in 50,000 - -
Transfers out (167,431) (1,011,645) -
Total Other Financing Sources
(Uses)(117,431) (1,011,645) -
Net Change in Fund Balances 2,451,433 (949,578) (8,900)
Fund Balances, Beginning of Year 917,720 1,494,757 1,928,572
Fund Balances, End of Year 3,369,153$ 545,179$ 1,919,672$
Street
Improvement
Housing
Authority
Special Revenue Funds
See Notes to Financial Statements 26
B.7.a
Packet Pg. 119 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENTS OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Economic development
Cultural and recreation
Capital outlay:
Project improvement costs
Debt service:
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special
Revenue Fund
Other Total
Governmental Governmental
Funds Funds
-$ 19,204$ 3,672,629$
- 874,416 926,919
- 99,424 1,247,615
(926) 30,900 422,959
- 8,517 112,191
- - 2,857,416
4,501 36,436 57,555
3,575 1,068,897 9,297,284
- 16,915 1,156,569
- 103,644 2,139,630
- 502,140 1,970,378
- - 9,585
157,490 204,250 1,015,993
- 502,275 792,200
- - 5,140
157,490 1,329,224 7,089,495
(153,915) (260,327) 2,207,789
- 1,746,294 1,796,294
- (617,218) (1,796,294)
- 1,129,076 -
(153,915) 868,749 2,207,789
(307,970) 1,847,706 5,880,785
(461,885)$ 2,716,455$ 8,088,574$
Child Care
Center
See Notes to Financial Statements 27
B.7.a
Packet Pg. 120 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
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, 2018
Net change in fund balances - total governmental funds 2,207,789$
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 792,199$
Depreciation expense (761,935) 30,264
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 insurance payable 126,785
Change in compensated absences payable (37,802) 88,983
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.92,444
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.43,148
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.38,418
Change in Net Position of Governmental Activities 2,501,046$
See Notes to Financial Statements 28
B.7.a
Packet Pg. 121 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2018
Assets:
Current:
Cash and investments 578,024$
Total Current Assets 578,024
Noncurrent:
Advances to other funds 875,000
Capital assets - net of accumulated depreciation 4,708,268
Total Noncurrent Assets 5,583,268
Total Assets 6,161,292$
Liabilities and Net Position:
Liabilities:
Current:
Deposits payable 6,875$
Total Current Liabilities 6,875
Total Liabilities 6,875
Net Position:
Invested in capital assets 4,708,268
Unrestricted 1,446,149
Total Net Position 6,154,417
Total Liabilities and Net Position 6,161,292$
Business-Type
Activities
Waste Water
Disposal
See Notes to Financial Statements 29
B.7.a
Packet Pg. 122 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2018
Operating Expenses:
Depreciation expense 88,570$
Total Operating Expenses 88,570
Operating Income (Loss)(88,570)
Nonoperating Revenues (Expenses):
Interest revenue 17,944
Total Nonoperating
Revenues (Expenses)17,944
Changes in Net Position (70,626)
Net Position:
Beginning of Year 6,225,043
End of Fiscal Year 6,154,417$
Business-Type
Activities
Waste Water
Disposal
See Notes to Financial Statements 30
B.7.a
Packet Pg. 123 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
Cash Flows from Non-Capital
Financing Activities:
Repayment received from other funds 260,000$
Advance to other funds (875,000)
Net Cash Provided (Used) by
Non-Capital Financing Activities (615,000)
Cash Flows from Investing Activities:
Interest received 17,944
Net Cash Provided (Used) by
Investing Activities 17,944
Net Increase (Decrease) in Cash
and Cash Equivalents (597,056)
Cash and Cash Equivalents at Beginning of Year 1,175,080
Cash and Cash Equivalents at End of Year 578,024$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)(88,570)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 88,570
Total Adjustments 88,570
Net Cash Provided (Used) by Operating Activities -$
Business-Type
Activities
Waste Water
Disposal
See Notes to Financial Statements 31
B.7.a
Packet Pg. 124 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2018
Agency
Funds
Assets:
Cash and investments 513,395$ 19,177,101$
Receivables:
Interest - 79,376
Due from other governments - 925,272
Land held for resale - 768,974
Restricted assets:
Cash and investments with fiscal agent - 1,762,755
Total Assets 513,395$ 22,713,478
Liabilities:
Accounts payable 493$ 5,421
Accrued interest - 363,452
Due to other governments - 3,991,032
Due to external parties 512,902 -
Long-term liabilities:
Due in one year - 665,000
Due in more than one year - 16,720,286
Total Liabilities 513,395$ 21,745,191
Net Position:
Held in trust for other purposes 968,287
Total Net Position 968,287$
Private-
Purpose Trust
Fund
Successor
Agency Private
Purpose Trust
Fund
See Notes to Financial Statements 32
B.7.a
Packet Pg. 125 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2018
Additions:
RPTTF distribution 2,190,786$
Investment earnings 229,423
Total Additions 2,420,209
Deductions:
Administrative expenses 228,410
Contractual services 36,883
Debt service payments - interest 1,117,551
Payments of enforceable obligations 2,857,416
Total Deductions 4,240,260
Changes in Net Position (1,820,051)
Net Position - Beginning of the Year 2,788,338
Net Position - End of the Year 968,287$
Private-
Purpose Trust
Fund
Successor
Agency Private
Purpose Trust
Fund
See Notes to Financial Statements 33
B.7.a
Packet Pg. 126 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
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34
B.7.a
Packet Pg. 127 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Organization and Summary of Significant Accounting Policies
a. Description of Entity
The City of Grand Terrace (City) was incorporated in November 1978 under the
General Laws of the State of California. The City operates under a Council-Manager form
of government and provides the following services: public safety (law enforcement),
highways and streets, cultural and recreational activities, public improvements, planning
and zoning, building and safety, low and moderate income housing programs, and general
administrative services.
As required by generally accepted accounting principles, the financial statements of the
City of Grand Terrace include the financial activities of the City (the primary government),
and the City of Grand Terrace Public Financing Authority (the Authority). This blended
component unit is discussed below and is included in the reporting entity because of the
significance of its operation and financial relationship with the City.
The Authority is legally separate from the City. However, the City of Grand Terrace’s
elected officials have a continuing full or partial accountability for fiscal matters of the
Authority. The financial reporting entity consists of: 1) the City, 2) organizations for which
the City is financially accountable, and 3) organizations for which the nature and
significance of their relationship with the City are such that exclusions would cause the
City’s financial statements to be misleading or incomplete.
An organization is fiscally dependent on the primary government if it is unable to adopt a
budget, levy taxes or set rates or charges, or issue bonded debt without approval by the
primary government. In a blended presentation, component unit balances and transactions
are reported in a manner similar to the balances and transactions of the City. Component
units are presented on a blended basis when the component unit’s governing body is
substantially the same as the City’s or the component unit provides services almost entirely
to the City. The following component units of the City have been included in the financial
reporting entity as blended component units.
City of Grand Terrace Public Financing Authority
The Grand Terrace Public Financing Authority (the Authority) was established on
July 16, 1991, pursuant to a Joint Powers Agreement between the City of Grand
Terrace and the former Community Redevelopment Agency of the City of Grand
Terrace. The Authority was created to facilitate financing of public capital
improvements benefiting the City and the former RDA. The City Council also acts as
the governing body of the Authority. The Authority’s activities are blended with those
of the City. Separate financial statements are not prepared for the Grand Terrace
Public Financing Authority.
There are several other governmental agencies, including the County of San Bernardino,
school districts, and others, providing services within the City of Grand Terrace. Those
agencies have independently elected governing boards other than the City Council of the
City of Grand Terrace and no financial accountability to the City of Grand Terrace.
Consequently, financial information for these agencies is not included within this financial
report.
35
B.7.a
Packet Pg. 128 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
b. Government-Wide and Fund Financial Statements
The government-wide financial statements include a statement of net position and a
statement of activities. These statements present summaries of governmental and
business-type activities for the City accompanied by a total column. Fiduciary activities of
the City are not included in these statements. Certain eliminations have been made as
prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and
receivables. All internal balances in the statement of net position have been eliminated
except those representing balances between the governmental activities and the
business-type activities, which are presented as internal balances and eliminated in the
total primary government column. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct and indirect
expenses of a given function or segment are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or segment. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment and 2) grants and
contributions, including special assessments, that are restricted to meeting the operational
or capital requirements of a particular function or segment. Taxes and other items not
properly included among program revenue are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when earned and expenses
are recorded when a liability is incurred, regardless of the timing of the cash flows.
Accordingly, all of the City's assets and liabilities, including capital assets, as well as
infrastructure assets, and long-term liabilities, are included in the accompanying statement
of net position. The statement of activities presents changes in net position. Under the
accrual basis of accounting, revenues are recognized in the period in which they are
earned while expenses are recognized in the period in which the liability is incurred. The
types of transactions reported as program revenues for the City are reported in three
categories: 1) charges for services, 2) operating grants and contributions, and 3) capital
grants and contributions.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified-accrual basis of accounting. Under the
modified-accrual basis of accounting, revenues are recognized in these funds when
susceptible to accrual (i.e., when they are both measurable and available). "Measurable"
means the amount of the transaction can be determined and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current
period. For this purpose, the City considers property taxes collected after year-end as
available, if they are collected within 60 days of the end of the current fiscal period. Other
revenue susceptible to accrual includes sales tax, state gasoline taxes, investment income,
36
B.7.a
Packet Pg. 129 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
and certain other intergovernmental revenues. Expenditures in the governmental funds are
generally recognized in the accounting period in which the related fund liability is incurred,
if measurable, except for unmatured principal and interest on general long-term debt, as
well as compensated absences and claims and judgments, which are recognized when
due.
The City reports the following major governmental funds:
• The General Fund is the government's primary operating fund. It accounts for all
financial resources of the general government, except those required to be accounted
for in another fund.
• The Street Improvement Fund accounts for all revenues collected for street capital
improvement fees under the Municipal Code. Funds are expended in accordance with
the latest adopted fiscal impact study and capital needs assessment.
• The Housing Authority Fund accounts for the housing assets transferred from the
former redevelopment agency and Low and Moderate housing activities of the City.
The fund activities are restricted for the same purposes as the former Low and
Moderate Income Housing Fund of the Agency.
• The Child Care Center Fund accounts for the remaining assets and liabilities of the
fund that formerly accounted for the fully licensed child care program of the City. The
program provided a structured environment for the physical, intellectual, and social
development of the child. On July 1, 2017, the City’s Child Care Program was
discontinued and its operations were taken over by Family Services Association (FSA).
The City reports the following major proprietary fund:
• The Waste Water Disposal Fund is used to account for the remaining assets and
liabilities of the fund that used to account for the provision of waste water disposal
services to the residences and businesses of the City. Currently, a Sewer Services
Agreement is in place between the City of Colton/Colton Utility Authority and the City
of Grand Terrace for the provision of waste water disposal services by the City of
Colton to residents and businesses of the City of Grand Terrace.
Additionally, the City reports the following fund types:
• Special Revenue Funds are used to account for the proceeds of specific revenue
sources that are legally restricted or committed to expenditures for specified purposes.
• Capital Projects Funds are used to account for financial resources used for the
acquisition or construction of major capital facilities (other than those financed by
the proprietary funds).
• Permanent Fund accounts for resources that are legally restricted, to the extent that
only earnings, and not principal, may be used for purposes that support the City’s
program.
• The Private Purpose Trust Fund is used to account for the resources, obligations, and
activities of the Successor Agency of the Redevelopment Agency of the City of Grand
Terrace as directed by the Oversight Board to settle the affairs of the dissolved agency
(see Note 14).
37
B.7.a
Packet Pg. 130 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
• Agency Funds are used to account for the resources held by the City in a fiduciary
capacity.
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are charges
between the government's proprietary funds functions and various other functions of the
government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and
3) capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
d. Other Accounting Policies
1. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other
funds" (i.e., the current portion of interfund loans) or "advances to/from other funds"
(i.e., the non-current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as "internal balances."
2. Cash and Cash Equivalents
For the purpose of the statement of cash flows, the City considers cash and cash
equivalents as short term, highly liquid investments that are both readily convertible to
known amounts of cash and so near their maturity that they present insignificant risk
of changes in value because of changes in interest rates. The City follows the practice
of pooling cash and investments of all funds. Since cash and investments are pooled,
the City utilizes the assumption that the cash and investments in the Enterprise Fund
are cash and cash equivalents.
3. Investments
The City reports its investments at fair value in the balance sheet. All investment
income, including changes in the fair value of investments, is recognized as revenue
in the operating statement.
4. Property Held for Resale
Property held for resale is recorded at the lower of cost or net realizable value.
38
B.7.a
Packet Pg. 131 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
5. Compensated Absences
The short-term portion is determined to be the amount due to employees for future
absences which is attributable to services already rendered and which is expected to
be paid during the next fiscal year. The total amount of liability for compensated
absences is segregated between short-term and long-term as indicated above and
both portions are reflected in the government-wide statements.
Vacation pay is payable to employees at the time a vacation is taken or upon
termination of employment. Normally, an employee cannot accrue more than
two times his regular annual entitlement.
Sick leave is payable when an employee is unable to work because of illness. Upon
termination, regular employees with 5 years continuous service will be paid 40% for
any unused sick leave.
6. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial,
individual cost of more than or equal to $5,000 (amount not rounded) and an estimated
useful life of at least two years. Such assets are recorded at historical cost, or
estimated historical cost if purchased or constructed. Donated Capital assets, donated
works of art and similar items, and capital assets received in a service concession
arrangement are reported at acquisition value at the time of acquisition by the City.
The cost of normal maintenance and repairs that do not add to the value of the asset
or materially extend assets’ lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component
units, are depreciated using the straight-line method over the following estimated
useful lives.
Assets Years
Buildings 50
Machinery & Equipment 5-15
Vehicles 6-15
Improvements other than buildings 15-20
Infrastructure 20-30
Sewer Lines 90
39
B.7.a
Packet Pg. 132 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
7. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the straight-line method. Bonds
payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums
and discounts, as well as bond issuance costs, during the current period. The face
amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as expenditures.
8. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of
resources related to pension, and pension expense, information about the fiduciary net
position and additions to/deletions from the fiduciary net position have been
determined on the same basis as they are reported by the CalPERS Financial Office.
For this purpose, benefit payments (including refunds of employee contributions) are
recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CalPERS audited financial statements are
publicly available reports that can be obtained at CalPERS website under Forms and
Publications.
GASB 68 requires that the reported results must pertain to liability and asset
information within certain defined timeframes. For this report, the following timeframes
are used:
Valuation Date (VD) June 30, 2016
Measurement date (MD) June 30, 2017
Measurement Period (MP) July 1, 2016 to June 30, 2017
9. Other Postemployment Benefits (OPEB) Liability
For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB and OPEB expense have been
determined by an independent actuary. For this purpose, benefit payments are
recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain
to liability and asset information within certain defined timeframes. For this report, the
following timeframes are used:
Valuation Date June 30, 2017
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
40
B.7.a
Packet Pg. 133 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
10. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and the governmental funds
balance sheet will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/ expenditure) until then. The
City only has one item that qualifies for reporting in this category. Deferred outflows
relating to the net pension obligation reported in the government-wide statement of net
position. These outflows are the results of contributions made after the measurement
period, which are expensed in the following year, and of adjustments due to difference
in proportions, change in assumptions, and the difference between actual contributions
made and the proportionate share of the risk pool’s total contributions. These amounts
are deferred and amortized over the expected average remaining service life time.
In addition to liabilities, the Statement of Net Position and the Governmental Balance
Sheet will sometimes report a separate section for deferred inflows of resources. This
separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized
as an inflow of resources (revenue) until that time. The City has three items, one of
which, arises only under a modified accrual basis of accounting that qualifies for
reporting in this category. Accordingly, the item, unavailable revenue, is reported only
in the governmental funds balance sheet. The governmental funds report unavailable
revenue from intergovernmental revenues. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available.
The other items are deferred pension related items and deferred OPEB related items.
Gains and losses related to changes in total pension or OPEB liability and their related
fiduciary net position are recognized in pension or OPEB expense, respectively,
systematically over time. Amounts are first recognized in pension or OPEB expense
for the year the gain or loss occurs. The remaining amounts are categorized as
deferred outflows and deferred inflows of resources related to pension or OPEB and
are recognized in future pension and OPEB expense, respectively.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected
and actual earning on pension or
OPEB plan investments
5 years All plans
All other amounts are amortized
over the expected average
remaining service lifetime
(EARSL) of the respective plan.
At June 30, 2018, EARLS were:
5.7 years
3.8 years
OPEB plan
Pension Miscellaneous – Cost
Sharing Plan
41
B.7.a
Packet Pg. 134 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
11. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both
restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order
to calculate the amounts to report as restricted – net position and unrestricted –
net position in the government-wide and proprietary fund financial statements, a flow
assumption must be made about the order in which the resources are considered to
be applied. It is the government’s policy to consider restricted – net position to have
been depleted before unrestricted – net position is applied.
12. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both
restricted and unrestricted resources (the total of committed, assigned, and
unassigned fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund financial
statements a flow assumption must be made about the order in which the resources
are considered to be applied. It is the government’s policy to consider restricted fund
balance to have been depleted before using any of the components of unrestricted
fund balance. Further, when the components of unrestricted fund balance can be used
for the same purpose, committed fund balance is depleted first, followed by assigned
fund balance. Unassigned fund balance is applied last.
13. Fund Balance Policies
The City implemented GASB Statement No. 54, “Fund Balance Reporting and
Governmental Fund Type Definitions”. This statement provides more clearly defined
fund balance categories to make the nature and extent of the constraints placed on a
government’s fund balance more transparent. The following classifications describe
the relative strength of the spending constraints placed on the purposes for which
resources can be used:
• Nonspendable – amounts that are not in a spendable form (such as inventory) or
are required to be maintained intact.
• Restricted – amounts constrained to specific purposes by their providers
(such as grantors, bondholders and higher levels of government), through
constitutional provisions or by enabling legislation.
• Committed – amounts constrained to specific purposes determined by a formal
action of the City Council, the government's highest level of decision-making
authority.
• Assigned – amounts the City intends to use for a specific purpose; intent can be
expressed by City Council or by an official or body to which the City Council
delegates the authority. By resolution, the Council has authorized the City Manager
and/or Finance Director to assign fund balance.
• Unassigned – amounts that are for any purpose; positive amounts are reported
only in the general fund.
42
B.7.a
Packet Pg. 135 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
The City Council, as the City's highest level of decision-making authority, may commit
fund balance for specific purposes pursuant to constraints imposed by formal actions
taken such as an ordinance or resolution. These committed amounts cannot be used
for any other purpose unless the City Council removes or changes the specified use
through the same type of formal action taken to establish the commitment. City Council
action to commit fund balance needs to occur within the fiscal reporting period;
however the amount can be determined subsequently.
14. Property Tax
Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal
year for which the taxes have been levied provided they become available. Available
means when due or past due and receivable within the current period and collected
within the current period or expected to be collected soon enough thereafter to be used
to pay liabilities of the current period. The County of San Bernardino collects property
taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January
proceeding the fiscal year for which the taxes are levied. Taxe s are levied on both real
and personal property as it exists on that date. The tax levy covers the fiscal period
July 1 to June 30. All secured personal property taxes and one-half of the taxes on real
property are due November 1; the second installment is due February 1. All taxes are
delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal
property taxes become due on the first of March each year and are delinquent, if
unpaid, on August 31.
15. Use of Estimates
The financial statements have been prepared in accordance with generally accepted
accounting principles accepted in the United States of America and necessarily include
amounts based on estimates and assumptions by management. Actual results could
differ from those amounts.
16. New Accounting Principles Adopted
During the fiscal year ended June 30, 2018, the City implemented the following
Governmental Accounting Standards Board (GASB) standards:
GASB Statement No. 75 – Accounting and Financial Reporting for Post-Employment
Benefits Other Than Pensions. The primary objective of this Statement is to improve
accounting and financial reporting by state and local governments for postemployment
benefits other than pensions (OPEB). It also improves information provided by state
and local governmental employers about financial support for OPEB that is provided
by other entities. This Statement replaces the requirements of Statements No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits other
than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers
and Agent Multiple-Employer Plans.
43
B.7.a
Packet Pg. 136 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
Deficit Fund Balances
As of June 30, 2018, the following funds have deficit fund balances:
Amount
Child Care Center Fund (461,885)$
CDBG (26,178)
Active Transportation Program (70,622)
Enhanced Infrastructure (33,564)
Financing District
Capital Projects (525)
These deficits will be funded by future revenues or transfers from other funds.
Budget
The following funds did not adopt a budget and therefore budgetary comparison
information is not presented: Child Care Center Fund, Cal Recycle Grant Fund,
Barton/Colton Bridge Fund, Capital Projects Fund, and the Dog Park Endowment Fund.
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Cash and investments as of June 30, 2018, are classified in the accompanying financial
statements as follows:
Statement of Net Position:
Cash and Investments 6,095,128$
Statement of Fiduciary Net Position:
Cash and Investments 19,690,496
Cash and Investments with Fiscal Agents 1,762,755
Total Cash and Investments 27,548,379$
Cash and investments as of June 30, 2018, consist of the following:
Cash on Hand 1,250$
Deposits with Financial Institutions 3,167,937
Investments 24,379,192
Total Cash and Investments 27,548,379$
44
B.7.a
Packet Pg. 137 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code (or the City’s investment policy, where more restrictive). The
table also identifies certain provisions of the California Government Code (or the City’s
investment policy, where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk. This table does not address investments of debt proceeds held
by bond trustee that are governed by the provisions of debt agreements of the City, rather
than the general provisions of the California Government Code or the City’s investment
policy.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Obligations 5 years None None
Repurchase Agreements 6 years None None
Certificates of Deposit 7 years None None
Passbook Savings Accounts 8 years 30%None
Securities Issued by Federal Agencies N/A None None
Local Agency Investment Fund (LAIF) N/A None 50,000,000$
Mutual Funds N/A 20%None
Pools and other Investment Structures N/A None None
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
City’s investment policy. The table below identifies the investment types that are authorized
for investments held by bond trustees. The table identifies certain provisions of these debt
agreements that address interest rate risk, credit risk and concentration of credit risk.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
Government Obligations 5 years None None
FHLB's 6 years None None
FHLMC's 7 years None None
Farm Credit Banks 8 years 30%None
FNMA's N/A None None
Financing Corp Debt Obligations N/A None 50,000,000$
Certificates of Deposit N/A 20%None
Deposits fully Insured by FDIC N/A None None
USAID Guaranteed Notes N/A None None
Investment Agreements N/A None None
Bankers Acceptances N/A None None
Municipal Obligations rated Aaa N/A None None
Commercial Paper rated P-1 N/A None None
Repurchase Agreements N/A None None
Money Market Mutual Funds rated AAAm N/A None None
45
B.7.a
Packet Pg. 138 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater
the sensitivity of its fair value to changes in market interest rates. One of the ways that the
City manages its exposure to interest rate risk is by purchasing a combination of shorter
and longer term investments and by timing cash flows from maturities so that a portion of
the portfolio is maturing or coming close to maturity evenly over time as necessary to
provide the cash flow and liquidity needed for operations. Information about the sensitivity
of the fair values of the City’s investments to market interest rate fluctuations are presented
below.
Remaining
Investment
Maturity
Authorized Investment Type Amount
12 Months or
Less
Certificates of Deposit 94,000$ 94,000$
Local Agency Investment Fund (LAIF) 17,454,489 17,454,489
Local Gov. Invest. Pool (CAMP) 3,988,332 3,988,332
First American Treasury 1,079,616 1,079,616
Held by Trustee:
Money Market Mutual Funds 1,762,755 1,762,755
Total 24,379,192$ 24,379,192$
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. Information about the minimum rating
required by the California Government Code, the City’s investment policy, or debt
agreements, and the actual rating as of year-end for each type of investment held by the
City can be found below.
Authorized Investment Type Amount
Minimum
Legal Rating
Actual
Rating
Certificates of Deposit 94,000$ N/A N/A
Local Agency Investment Fund (LAIF)17,454,489 N/A N/A
Local Gov. Invest. Pool (CAMP)3,988,332 N/A N/A
First American Treasury 1,079,616 N/A N/A
Held by Trustee:
Money Market Mutual Funds 1,762,755 AAAm N/A
Total 24,379,192$
46
B.7.a
Packet Pg. 139 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested
in any one issuer beyond that stipulated by the California Government Code. During the
fiscal year ended June 30, 2018, the City did not hold any investments in any one issuer
(other than Mutual Funds and External Investment Pools) that represent 5% or more of
total City’s investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of
its investment or collateral securities that are in the possession of another party. The
California Government Code and the City’s investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The
market value of the pledged securities in the collateral pool must equal at least 110% of
the total amount deposited by the public agencies. California law also allows financial
institutions to secure deposits by pledging first deed mortgage notes having a value of
150% of the secured public deposits.
As of June 30, 2018, the City had deposits with financial institutions in excess of federal
depository insurance limits of $2,819,164.
Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the City’s investment in this pool is reported in the
accompanying financial statements at amounts based upon the City’s pro-rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of
that portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis.
LAIF has reported to its participating agencies that, as of June 30, 2018, the carrying
amount (at amortized cost) of the Pool was $88,964,875,827 and the estimated fair value
of the Pool was $88,798,232,977. The City’s proportionate share of the Pool’s market value
(as determined by LAIF) as of June 30, 2018, was $17,454,489. Included in LAIF’s
investment portfolio are collateralized mortgage obligations, mortgage-backed securities,
other asset-backed securities, loans to certain state funds, and floating rate securities.
47
B.7.a
Packet Pg. 140 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 3: Cash and Investments (Continued)
Local Government Investment Pool
The City is a voluntary participant in the Local Government Investment Pool, “CAMP”
(California Asset Management Program). CAMP is a California Joint Powers Authority,
established to provide public agencies with professional investment services, and is
directed by a Board of Trustees, which is made up of experienced local government finance
directors and treasurers. The CAMP Pool is a permitted investment for all local agencies
under California Government Code Section 53601(p).
The City reports its share in the investment pool at the estimated fair market value. As of
June 30, 2018, the City’s share of the Pool (as determined by CAMP) is $3,988,332.
Included in the CAMP’s investment portfolio are U.S. treasury notes, bonds, bills or
certificates of indebtedness or other obligations of the United States, federal agency or
U.S. government-sponsored enterprise obligations, participations or other instruments,
repurchase agreements, bills of exchange or time drafts, negotiable certificates of deposits,
commercial paper of prime quality of the highest ranking or of the highest letter and number
rating.
Pooled Cash
The City follows the practice of pooling cash and investments of all funds, except for funds
required to be held by outside fiscal agents under the provisions of bond indentures.
Interest income earned on pooled cash and investments is allocated to the various funds
based on the cash balances. Interest income from cash and investments with fiscal agents
is credited directly to the related fund.
Fair Value Measurement and Application
The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs
used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3
inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2018:
Total 1 2 3
Investments:
Local Government Investment Pool 3,988,332$ -$ 3,988,332$ -$
First American Treasury 1,079,616 - 1,079,616 -
Certificates of Deposit 94,000 - 94,000 -
Local Agency Investment Fund 17,454,489 - 17,454,489 -
Total Cash Investments 22,616,437 - 22,616,437 -
Investments with Fiscal Agents:
Money Market Funds 1,762,755 - 1,762,755 -
Total Investments with
Fiscal Agent 1,762,755 - 1,762,755 -
Total Investments 24,379,192$ -$ 24,379,192$ -$
Level
Investment Type
48
B.7.a
Packet Pg. 141 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 4: Interfund Receivable, Payable and Transfers
The composition of interfund balances at June 30, 2018, is as follows:
Due to/from other funds:
Receivable Fund Payable Fund Amount
General Fund Child Care Fund (1) 408,995$
Nonmajor Governmental Funds (2) 124,448
Street Improvement Fund Nonmajor Governmental Funds (3) 9,000
Nonmajor Governmental Funds Nonmajor Governmental Funds (4) 27,000
569,443$
(1) The General Fund advanced funds to the Child Care Fund to cover deficit cash
balances and to cover the Unfunded Accrued Liability pension portion.
(2) The General Fund advanced funds to the CDBG fund and the Active Transportation
Program $24,951 and $99,497, respectively, to cover deficit cash balances.
(3) The Street Improvement Fund advanced funds to the Enhanced Infrastructure
Financing District Fund to cover expenditures.
(4) The Storm Drain Improvement Fund, Park Development Fund and Facilities
Development Fund advanced funds of $9,000 each to the Enhanced Infrastructure
Financing District Fund to cover expenditures.
Advances from/to other funds:
Receivable Fund Payable Fund Amount
Housing Authority Fund General Fund 168,205$
Waste Water Disposal General Fund 875,000
1,043,205$
In April 1980, the Community Redevelopment Agency (CRA) entered into a pass-through
agreement with the City, which was found to be in noncompliance with State statutes. The
misallocated tax increment was being treated as an advance payable to the former
Community Redevelopment Agency from the General Fund. Upon the dissolution of the
Redevelopment Agency, the advance receivable was transferred to the Housing Authority
and the Successor Agency and is shown as a due from other government in the Private
Purpose Trust Fund in the amount of $925,272 and an advance to other funds in the
Housing authority in the amount of $168,205. Interest on the advance accrues at an interest
rate equal to the Local Agency Investment Fund yield. The advance is to be repaid as funds
are available.
The Waste Water Disposal Fund advanced $875,000 to the General Fund for the
acquisition of property. Effective June 30, 2018, interest on the advance accrues at an
interest rate equal to the Local Agency Investment Fund yield. The General Fund will make
annual payments beginning July 1, 2020 in the amount of $87,500.
49
B.7.a
Packet Pg. 142 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 4: Interfund Receivable, Payable and Transfers (Continued)
Interfund Transfers:
Fund Receiving Transfers Fund Making Transfers Amount
General Fund Nonmajor Governmental Funds (1) 50,000$
Nonmajor Governmental Funds General Fund (2) 167,431
Nonmajor Governmental Funds Nonmajor Governmental Funds (3), (4) 441,000
Nonmajor Governmental Funds Nonmajor Governmental Funds (5) 126,218
Nonmajor Governmental Funds Street Improvement Fund (5) 1,011,645
Total Interfund Transfers 1,796,294$
(1) Transfers to the General Fund from the Capital Project – Parks Fund in the amount of
$50,000 were for additional funding for capital assets.
(2) Transfers in the amount of $107,431 were made from the General Fund to the
State Gas Tax Fund for franchise sweep fees and pavement impact fees. Transfers
in the amount of $10,000 were made to the Senior Bus Program Fund for additional
funding. Transfer in the amount of $50,000 were made to the Capital Project - Parks
Fund for the Dog Park Project.
(3) Transfers totaling $436,000 were made from the Park Development Fund to the
Capital Project - Parks Fund to provide funding for the Dog Park Project in the amount
of $310,000 and the CJUSD Swimming Pool Project in the amount of $126,000.
(4) Transfers totaling $5,000 were made from the Air Quality Improvement Fund to the
Senior Bus Program Fund for additional funding.
(5) Transfers totaling $126,218 were made from the Measure I Fund and State Gas Tax
Fund to the Capital Improvement - Streets Fund to cover the Slurry Seal Project.
Transfers from the Street Improvement Fund totaling $1,011,645 were made to the
Capital Improvement-Streets Fund to cover capital improvement projects.
50
B.7.a
Packet Pg. 143 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 5: Capital Assets
Capital assets activity for the year ended June 30, 2018, was as follows:
Beginning Ending
Balance Transfers Additions Deletions Balance
Governmental Activities:
Capital assets, not being depreciated:
Land 3,262,881$ -$ -$ -$ 3,262,881$
Construction-in-progress 547,059 (153,202) 134,603 - 528,460
Total Capital Assets,
Not Being Depreciated 3,809,940 (153,202) 134,603 - 3,791,341
Capital assets, being depreciated:
Buildings 6,268,981 - - - 6,268,981
Machinery and Equipment 866,438 - 124,127 60,252 930,313
Vehicles 504,754 - 38,800 - 543,554
Improvements other than buildings 5,634,098 153,202 494,669 - 6,281,969
Infrastructure 4,341,296 - - - 4,341,296
Total Capital Assets,
Being Depreciated 17,615,567 153,202 657,596 60,252 18,366,113
Less accumulated depreciation:
Buildings 3,366,657 - 155,602 - 3,522,259
Machinery and Equipment 647,694 - 84,798 60,252 672,240
Vehicles 435,614 - 24,509 - 460,123
Improvements other than buildings 3,100,672 - 268,643 - 3,369,315
Infrastructure 1,981,777 - 228,383 - 2,210,160
Total Accumulated
Depreciation 9,532,414 - 761,935 60,252 10,234,097
Total Capital Assets,
Being Depreciated, Net 8,083,153 153,202 (104,339) - 8,132,016
Governmental Activities
Capital Assets, Net 11,893,093$ -$ 30,264$ -$ 11,923,357$
Depreciation expense was charged to functions of the primary government as follows:
Governmental Activities:
General Government 153,635$
Public Safety 12,554
Public Works 254,459
Culture and recreation 341,287
Total Depreciation expense - Governmental Activities 761,935$
51
B.7.a
Packet Pg. 144 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 5: Capital Assets (Continued)
Beginning Ending
Balance Additions Deletions Balance
Business-type Activities:
Capital assets, being depreciated:
Sewer mains 4,023,128$ -$ -$ 4,023,128$
Laterals 1,890,944 - - 1,890,944
Manholes 1,298,760 - - 1,298,760
Improvements 202,274 - - 202,274
Total Capital Assets,
Being Depreciated 7,415,106 - - 7,415,106
Less accumulated depreciation:
Sewer mains 1,471,553 44,701 - 1,516,254
Laterals 604,123 21,010 - 625,133
Manholes 445,672 14,431 - 460,103
Improvements 96,920 8,428 - 105,348
Total Accumulated Depreciation 2,618,268 88,570 - 2,706,838
Business-type Activities
Capital Assets, Net 4,796,838$ (88,570)$ -$ 4,708,268$
Note 6: Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2018, was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
CJPIA Retrospective Liability 126,785$ -$ 126,785$ -$ -$
Compensated Absences 127,927 101,931 64,129 165,729 83,079
Total Long-Term Liabilities 254,712$ 101,931$ 190,914$ 165,729$ 83,079$
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 of the Notes
to Financial Statements. The liability will be paid in future years as it becomes due from
the General Fund.
Note 7: Pension Plan
Plan Description
The City contributes to the California Public Employees Retirement System (PERS), a cost
sharing multiple-employer public employee defined benefit pension plan. PERS provides
retirement and disability benefits, annual cost-of-living adjustments, and death benefits to
plan members and beneficiaries. PERS acts as a common investment and administrative
agent for participating public entities within the State of California. Benefit provisions and
all other requirements are established by State statute and City ordinance. Copies of
PERS’ annual financial report may be obtained from their executive office:
400 “P” Street, Sacramento, California 95814.
52
B.7.a
Packet Pg. 145 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 7: Pension Plan (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of
full-time employment. Members with five years of total service are eligible to retire at
age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service. The death benefit is one of the following: the
Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death
Benefit. The cost of living adjustments for each plan are applied as specified by the
Public Employees’ Retirement Law.
Below is the summary of the plans’ provisions and benefits in effect at June 30, 2018,
for which the City of Grand Terrace has contracted:
Tier 1 *Tier 2 PEPRA
Hire date
Prior to
December 13, 2012
December 13, 2012
but prior to
January 1, 2013
January 1, 2013
and after
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years s ervice
Benefit payments monthly for life monthly for life monthly for life
Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs
Monthly benefits, as a %
of eligible compensation
2% - 2.7%, 50 yrs -
63+ yrs,
respectively
1.092% - 2.418%,
50 yrs - 63+ yrs,
respectively
1.000% - 2.500%,
52 yrs - 67+ yrs,
respectively
Required employee
contribution rates 7.951%6.900%6.250%
Required employer
contribution rates 11.675%7.200%6.533%
*Closed to new entrants
Miscellaneous Cost-Sharing Plans
Employees Covered
At June 30, 2016, the following employees were covered by the benefit terms of the Plan:
Description Misc - Tier 1 Misc - Tier 2 PEPRA Total
Active members 20 4 14 38
Transferred members 20 1 2 23
Terminated members 56 1 6 63
Retired members and beneficiaries 37 0 0 37
Total 133 6 22 161
Number of Members
53
B.7.a
Packet Pg. 146 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 7: Pension Plan (Continued)
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that
the employer contribution rates for all public employers be determined on an annual basis
by the actuary and shall be effective on the July 1 following notice of a change in the rate.
The total plan contributions are determined through the CalPERS’ annual actuarial
valuation process. The actuarially determined rate is based on the estimated amount
necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by
employees during the year, and any unfunded accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate
of employees.
For the year ended June 30, 2018, the employer contributions recognized as a reduction
to the net pension liability was $424,915.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of
Resources Related to Pensions
As of June 30, 2018, the City reported net pension liabilities for its proportionate shares of
the net pension liability of $5,064,768.
The City’s net pension liability for each Plan is measured as the proportionate share of the
net pension liability. The net pension liability of each of the Plans is measured as of
June 30, 2017, and the total pension liability for each Plan used to calculate the net pension
liability was determined by an actuarial valuation as of June 30, 2016 rolled forward to
June 30, 2017 using standard update procedures. The City’s proportion of the net pension
liability was based on a projection of the City’s long-term share of contributions to the
pension plans relative to the projected contributions of all participating employers,
actuarially determined. The City’s proportionate share of the net pension liability for each
Plan as of June 30, 2016 and 2017 was as follows:
Proportions as a percentage of the CalPERS risk pool:
Proportion - June 30, 2016 0.13060%
Proportion - June 30, 2017 0.12848%
Change - Increase (Decrease)-0.00212%
54
B.7.a
Packet Pg. 147 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 7: Pension Plan (Continued)
For the year ended June 30, 2018, the City recognized a total pension expense of
$348,388. At June 30, 2018, the City reported deferred outflows and deferred inflows of
resources related to pensions as follows:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
City contribution subsequent to the
measurement date 391,538$ -$
Difference between Expected and
Actual Experience 5,269 (75,489)
Change in Assumptions 653,766 (49,850)
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments 147,855 -
Adjustment due to Difference in
Proportions 28,663 (584,957)
Differences in proportionate share 17,500 (147,325)
Total 1,244,591$ (857,621)$
$391,538 reported as deferred outflows of resources related to contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the
year ended June 30, 2019. Other amounts reported as deferred outflows or deferred
inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement
Period Ended
June 30:
Deferred
Outflows/(Inflows)
of Resources
2018 (261,852)$
2019 106,897
2020 238,172
2021 (87,785)
(4,568)$
55
B.7.a
Packet Pg. 148 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 7: Pension Plan (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The total pension liabilities in the June 30, 2017 actuarial valuations were determined
using the following actuarial assumptions:
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 7.15%
Inflation 2.75%
Projected Salary Increase Varies by Entry Age and Service
Mortality Rate Table *Derived using CalPERS’ Membership Data for all
Funds
Post Retirement Benefit
Increase
Contract COLA up to 2.75% until Purchasing
Power Protection Allowance Floor on Purchasing
Power applies, 2.75% thereafter
Actuarial Assumptions
* The mortality table used was developed based on CalPERS’ specific data. The table
includes 20 years of mortality improvements using Society of Actuaries Scale BB.
All other actuarial assumptions used in the June 30, 2017, valuation were based on the
results of an actuarial experience study for the period from 1997 to 2011, including updates
to salary increase, mortality and retirement rates. The Experience Study report can be
obtained at CalPERS’ website at www.calpers.ca.gov under Forms and Publications.
Change of Assumptions
For the measurement date June 30, 2017, the accounting discount rate was lowered from
7.65 to 7.15 percent.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To
determine whether the municipal bond rate should be used in the calculation of a discount
rate for each plan, CalPERS stress tested plans that would most likely result in a discount
rate that would be different from the actuarially assumed discount rate. Based on the
testing, none of the tested plans run out of assets. Therefore, the current
7.15 percent discount rate is adequate and the use of the municipal bond rate calculation
is not necessary. The long term expected discount rate of 7.15 percent is applied to all
plans in the Public Employees Retirement Fund. The stress test results are presented in a
detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’
website under the GASB 68 section.
56
B.7.a
Packet Pg. 149 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 7: Pension Plan (Continued)
In determining the long-term expected rate of return, CalPERS took into account both
short-term and long-term market return expectations as well as the expected pension fund
cash flows. Such cash flows were developed assuming that both members and employers
will make their required contributions on time and as scheduled in all future years. Using
historical returns of all the funds’ asset classes, expected compound (geometric) returns
were calculated over the short-term (first 10 years) and the long-term (11-60 years) using
a building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate
of return was set by calculating the single equivalent expected return that arrived at the
same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equivalent to the
single equivalent rate calculated above and rounded down to the nearest one quarter of
one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of
return was calculated using the capital market assumptions applied to determine the
discount rate and asset allocation. The target allocation shown was adopted by the Board
effective on July 1, 2024.
Asset Class
New Strategic
Allocation
Real Return
Years 1 - 10 (1)
Real Return
Years 11+ (2)
Global Equity 47.00% 4.90% 5.38%
Global Fixed Income 19.00% 0.80% 2.27%
Inflation Sensitive 6.00% 0.60% 1.39%
Private Equity 12.00% 6.60% 6.63%
Real Estate 11.00% 2.80% 5.21%
Infrastructure and Forestland 3.00% 3.90% 5.36%
Liquidity 2.00% -0.40% -0.90%
100.00%
(1) An expected inflation of 2.5% used for this period.
(2) An expected inflation of 3.0% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the City’s proportionate share of the net pension liability, calculated
using the discount rate of 7.15%, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1% point lower
(6.15%) or 1% point higher (8.15%) than the current rate:
Discount Rate - 1% Current Discount Discount Rate +1%
6.15%7.15%8.15%
Miscellaneous 7,219,769$ 5,064,768$ 3,279,958$
Plans' Net Pension
Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports. See CalPERS’ website for additional
information.
57
B.7.a
Packet Pg. 150 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 8: Other Post-Employment Benefits
Plan Description
The City provides a medical plan coverage for retirees. This coverage is available for
employees who satisfy the requirements for retirement under the California Public
Employees Retirement System (PERS), which is age 50 or older with at least five years of
State or public agency service.
Medical plan benefits are provided through PERS, as permitted by the Public Employees’
Medical and Hospital and Care Act (PEMHCA). As a PEMHCA employer, the City has
elected the unequal contribution method, where the contribution will be increased annually
over twenty years until it reaches the same employer contribution as active employee
medical plan coverage.
Contributions
The contribution requirements of plan members and the City are established and may be
amended by the City Council. Currently, contributions are not required from plan members.
The required contribution is based on pay-as-you-go financing requirements. For the
measurement date ended June 30, 2018, the City’s cash contributions were $20,043 in
total payments, which were recognized as a reduction to the OPEB liability.
Employees Covered
At June 30, 2018, the measurement date, the following numbers of participants were
covered by the benefit terms:
Number of Covered
Participants
Inactives currently receiving benefits 8
Inactives entitled to but not yet receiving benefits -
Active employees 15
Total 23
Covered participant counts were available to the actuary for the June 30, 2017 actuarial
valuation but not as of June 30, 2018 measurement date.
58
B.7.a
Packet Pg. 151 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2018
Note 8: Other Post-Employment Benefits (Continued)
Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2018 for the measurement
period July 1, 2017 through June 30, 2018. The total OPEB liability used to calculate the
total OPEB liability was determined by an actuarial valuation dated June 30, 2017, based
on the following actuarial assumptions:
Actuarial Assumptions:
Discount rate 3.87% at June 30, 2018 (Bond Buyer 20-bond Index)
Inflation 2.75% per annum
Salary Increases Aggregate - 3.00%
Merit - Tables from CalPERS 1997-2015 Experience Study
Investment rate of retrun N/A
Mortality rate CalPERS 1997-2011 Experience Study
Healthcare trend rate Non-medicare - 7.5% for 2020, decreasing t o an ultimate
rate of 4.0% in 2076
Medicare - 6.5% for 2020, decreasing to an ultimate rate of
4.0% in 2076
Discount Rate
The discount rate used to measure the total OPEB liability was 3.87%. The discount rate
is based on the bond buyer 20-bond index.
Changes in the Total OPEB Liability.
The changes in the total OPEB liability for the plan are as follows:
Total OPEB Liability
Measurement Period
2017-18
Total OPEB Liability - June 30, 2017 1,295,632$
Changes in Total OPEB Liability
Service Cost 169,316
Interest 51,629
Assumption changes (45,427)
Benefits payments (45,629)
Change in benefit terms (259,790)
Net Changes (129,901)
Total OPEB Liability - June 30, 2018 1,165,731$
59
B.7.a
Packet Pg. 152 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 8: Other Post-Employment Benefits (Continued)
Sensitivity of the Total OPEB Liability to Changes in the discount rate
The following presents the total OPEB liability of the City, as well as what the City's total
OPEB liability would be if it were calculated using a discount rate that is one percentage
point higher or one percentage point lower than the current discount rate, for the
measurement period June 30, 2018:
1% Decrease (2.87%) Current Rate (3.87%) 1% Increase (4.87%)
Total OPEB Liability 1,334,541$ 1,165,731$ 1,027,756$
Discount Rate
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates
The following presents the total OPEB liability of the City, as well as what the City's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are one
percentage point higher or one percentage point lower than the current healthcare cost
trend rates:
1% Decrease Current Rate 1% Increase
Total OPEB Liability 1,099,572$ 1,165,731$ 1,229,909$
Healthcare Trend Rate
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the fiscal year ended June 30, 2018, the City recognized OPEB expense of $(46,640).
At June 30, 2018, the City's deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience -$ -$
Change in assumptions - 37,457
Employer contribution made
subsequent to measurement date - -
Total -$ 37,457$
60
B.7.a
Packet Pg. 153 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 8: Other Post-Employment Benefits (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Fiscal Year Ended
June 30
Deferred
Outflows/(Inflows) of
Resources
2019 (7,970)$
2020 (7,970)
2021 (7,970)
2022 (7,970)
2023 (5,577)
Total (37,457)$
Note 9: Risk Management
The City is a member of the California Joint Powers Insurance Authority (the "Authority"). The
following joint venture disclosures are made in compliance with GASB Code Section J50.103:
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Grand Terrace is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 116 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §6500 et seq.
The purpose of the Authority is to arrange and administer programs for the pooling of self-
insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official
as its representative on the Board of Directors. The Board operates through a nine-member
Executive Committee.
b. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years
2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual
retrospective adjustment. The total funding requirement for primary self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies
based on payroll and claims history, relative to other members of the risk-sharing pool.
Liability
Claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members.
A variable credibility factor is determined for each member, which establishes the
weight applied to payroll and the weight applied to losses within the formula. (2) The
first layer of losses includes incurred costs up to $30,000 for each occurrence and is
evaluated as a percentage of the pool’s total incurred costs within the first layer.
61
B.7.a
Packet Pg. 154 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 9: Risk Management (Continued)
(3) The second layer of losses includes incurred costs from $30,000 to $750,000 for
each occurrence and is evaluated as a percentage of the pool’s total incurred costs
within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed
based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is
$50 million per occurrence. Subsidence losses have a sub-limit of $40 million per
occurrence. The coverage structure includes retained risk that is pooled among
members, reinsurance, and excess insurance. More detailed information about the
various layers of coverage is available on the following website:
https://cjpia.org/protection/coverage-programs.
Workers’ Compensation
Claims are pooled separately between public safety (police and fire) and general
government exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member,
which establishes the weight applied to payroll and the weight applied to losses within
the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within
the first layer. (3) The second layer of losses includes incurred costs from $50,000 to
$100,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory
limits are distributed based on the outcome of cost allocation within the first and second
loss layers.
For 2017-18 the Authority’s pooled retention is $2 million per occurrence, with
reinsurance to statutory limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s
Liability losses from $5 million to $10 million are pooled among members.
c. Purchased Insurance
Property Insurance
The City participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. City property is
currently insured according to a schedule of covered property submitted by the City to
the Authority. City property currently has all-risk property insurance protection in the
amount of $15,050,666. There is a $10,000 deductible per occurrence except for
non-emergency vehicle insurance which has a $2,500 deductible.
d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no
significant reductions in pooled or insured liability coverage in 2017-18.
62
B.7.a
Packet Pg. 155 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 10: Commitments and Contingencies
As of June 30, 2018, in the opinion of the City Administration and its legal counsel, there are
no outstanding matters, which would have a material effect on the financial position of the City.
The following material construction commitments existed at June 30, 2018:
Project Name
Contract
Amount
Expenditures to
date as of
June 30, 2018
Remaining
Commitments
Pavement Rehabilitation Project 756,000$ $ - 756,000$
Note 11: Net Position Restatement
Beginning net position was restated by $324,053 for the implementation of GASB
Statement No. 75 – Accounting and Financial Reporting for Post-Employment Benefits
Other Than Pensions.
Note 12: Subsequent Event
In September 2018, the City sold the site of the former Grand Terrace Child Care Center for
approximately $850,000.
Note 13: Proposition 218
Proposition 218, which was approved by the voters in November 1996, will regulate the City's
ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or
extended taxes, assessments, and fees subject to the provisions of Proposition 218 require
voter approval before they can be implemented. Additionally, Proposition 218 provides that
these taxes, assessments, and fees are subject to the voter initiative process and may be
rescinded in the future by the voters.
Note 14: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (“the Bill”)
that provides for the dissolution of all redevelopment agencies in the State of California. This
action impacted the reporting entity of the City of Grand Terrace that previously had reported
a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another
unit of local government will agree to serve as the “successor agency” to hold the assets until
they are distributed to other units of state and local government.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California cannot enter into new projects, obligations or commitments. Subject to the
control of a newly established oversight board, remaining assets can only be used to pay
enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is
necessary to pay the estimated annual installment payments on enforceable obligations of the
former redevelopment agency until all enforceable obligations of the prior redevelopment
agency have been paid in full and all assets have been liquidated.
63
B.7.a
Packet Pg. 156 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 14: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency
(Continued)
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court
on December 29, 2011) all redevelopment agencies in the State of California were dissolved
and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution,
the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund
(private purpose trust fund) in the financial statements of the City.
Cash and Investments
As of June 30, 2018, cash and investments were reported in the accompanying financial
statements as follows:
Cash and investments 19,177,101$
Cash and investments with fiscal agent 1,762,755
Total Cash and Investments 20,939,856$
Long-Term Debt
Long-term liability activity for the year ended June 30, 2018, was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Tax Allocation Bonds:
2011 Tax Allocation Bonds, Series A 13,745,000$ -$ 320,000$ 13,425,000$ 330,000$
2011 Tax Allocation Bonds, Series B 4,380,000 - 310,000 4,070,000 335,000
Discount on Bonds issued (118,824) - (9,110) (109,714) -
Total Bonds Payable 18,006,176$ -$ 620,890$ 17,385,286$ 665,000$
2011A Tax Allocation Bonds
In June of 2011, the former CRA issued the $15,175,000 Community Redevelopment
Project Area Tax Allocation Bonds, Issue of 2011A. The Bonds were issued to finance
public improvement projects pursuant to the Redevelopment Plan and for other
redevelopment activities of the Agency. Interest varies from 2.00% to 6.00% and is
payable semiannually on March 1 and September 1, commencing September 1, 2011.
Principal payments are due annually commencing September 1, 2012, through
September 1, 2033. The Bonds are payable from and secured by a pledge of
Tax Increment, less amounts required to make payments under the Pass-Through
Agreements, annual debt service of the 2004 Bonds and the Housing Set-Aside amount.
The 2011A Tax Allocation Bond was transferred to the Successor Agency on
February 1, 2012, as a result of the Redevelopment Agency closure. The balance at
June 30, 2018, amounted to $13,425,000.
64
B.7.a
Packet Pg. 157 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 14: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency
(Continued)
Debt service payments to maturity for the 2011A Tax Allocation Bonds are as follows:
Year Ending June 30 Principal Interest
2019 330,000$ 776,680$
2020 340,000 762,478
2021 360,000 745,860
2022 380,000 726,990
2023 400,000 707,100
2024-2028 2,985,000 3,129,450
2029-2033 6,975,000 1,591,050
2034-2035 1,655,000 49,650
Total 13,425,000$ 8,489,258$
2011B Tax Allocation Bonds
In June of 2011, the former CRA issued the $5,650,000 Community Redevelopment
Project Area Taxable Tax Allocation Bonds, Issue of 2011 B. The Bonds were issued for
the purpose of acquiring land for resale and development in the Project Area. Interest
varies from 7.10% to 7.70% and is payable semiannually on March 1 and September 1,
commencing September 1, 2011. Principal payments are due annually commencing
September 1, 2012 through September 1, 2026. The Bonds are payable from and
secured by a pledge of Tax Increment, less amounts required to make payments under
the Pass-Through Agreements, annual debt service of the 2004 Bonds and the Housing
Set-Aside Amount. The 2011 B Tax Allocation Bond was transferred to the Successor
Agency on February 1, 2012 as a result of the Redevelopment Agency closure. The
balance at June 30, 2018, amounted to $4,070,000.
Debt service payments to maturity for the 2011 B Taxable Tax Allocation Bonds are as
follows:
Year Ending June 30 Principal Interest
2019 335,000$ 295,018$
2020 360,000 270,345
2021 385,000 243,898
2022 410,000 214,445
2023 440,000 181,720
2024-2027 2,140,000 344,960
Total 4,070,000$ 1,550,386$
65
B.7.a
Packet Pg. 158 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED JUNE 30, 2018
Note 14: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency
(Continued)
Pledged Tax Revenues
The City has pledged, as security for bonds issued, certain tax revenues for the
repayment of Successor Agency bonds through final maturity on September 1, 2033, or
earlier retirement, whichever occurs first. Tax revenues consist of tax increment
revenues allocated to the Successor Agency pursuant to Section 33670 of the
Redevelopment Law. Such Law excludes a portion of tax increment revenues required
to be paid under Tax-Sharing Agreements unless the payment of such amounts has
been subordinated to the payment of debt service on the Bonds. Assembly Bill 1X 26
provided that upon dissolution of the Redevelopment Agency, property taxes allocated
to redevelopment agencies no longer are deemed tax increment but rather property tax
revenues and will be allocated first to local agency and school entity pursuant to any
pass-through agreement, then second to successor agencies to make payments on the
indebtedness incurred by the dissolved redevelopment agency. For the current year, the
total property tax revenue recognized by the Successor Agency was $2,190,786 and the
debt service obligation on the bonds was $1,737,360.
66
B.7.a
Packet Pg. 159 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
MISCELLANEOUS COST SHARING PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Measurement Date 2014 2015 2016 2017
Miscellaneous Plan
Proportion of the Net Pension Liability 0.13066% 0.14106% 0.13060%0.12848%
Proportionate Share of the Net Pension Liability 3,229,236$ 3,870,057$ 4,536,720$ 5,064,768$
Covered Payroll 1,413,685$ 1,452,613$ 1,335,625$ 1,540,292$
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 228.43% 266.42% 339.67%328.82%
Plan Fiduciary Net Position 10,367,574$ 9,765,354$ 9,548,211$ 10,602,618$
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 76.25%71.66% 67.79%67.67%
Notes to Schedule:
Benefit Changes: No changes in benefits.
Changes of Assumptions: In 2017, the account discount rate was reduced from 7.65 percent to 7.15 percent.
(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 four years are shown.
67
B.7.a
Packet Pg. 160 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COST SHARING MULTIPLE EMPLOYER BENEFIT PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
Miscellaneous Plan
Actuarially Determined Contribution 159,393$ 116,663$ 424,915$ 391,538$
Contribution in Relation to the Actuarially Determined Contribution (159,393) (116,663) (424,915) (391,538)
Contribution Deficiency (Excess)-$ -$ -$ -$
Covered Payroll 1,452,613$ 1,335,625$ 1,540,292$ 1,352,434$
Contributions as a Percentage of Covered Payroll 10.97%8.73%27.59%28.95%
Note to Schedule:Miscellaneous Plan and PEPRA Miscellaneous Plan
Valuation Date:June 30, 2015
Methods and assumptions used to determine
contribution rates:
Actuarial Cost Method
Amortization method Level percentage of payroll
Assets valuation method Market value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll growth 3.00%
Investment rate of return
Individual salary growth
(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 four years are shown.
Entry age normal
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%.
7.5% net of pension plan investment and administrative expense, including inflation
68
B.7.a
Packet Pg. 161 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018
Total OPEB Liability
Service cost 169,316$
Interest on the total OPEB liability 51,629
Actual and expected experience difference -
Changes in assumptions (45,427)
Changes in benefit terms (259,790)
Benefit payments (45,629)
Net change in total OPEB liability (129,901)
Total OPEB liability - beginning 1,295,632
Total OPEB liability - ending 1,165,731
Covered-employee Payroll 866,196$
Total OPEB liability as a percentage of Covered-employee Payroll 135%
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.
69
B.7.a
Packet Pg. 162 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 917,720$ 917,720$ 917,720$ -$
Resources (Inflows):
Taxes 3,480,000 3,480,000 3,653,425 173,425
Intergovernmental 25,000 25,000 42,306 17,306
Charges for services 971,620 1,022,447 1,107,908 85,461
Use of money and property 445,000 445,000 380,713 (64,287)
Fines and forfeitures 76,800 76,800 103,674 26,874
Contributions - 2,857,416 2,857,416 -
Miscellaneous 85,750 93,250 16,618 (76,632)
Transfers in 30,000 755,853 50,000 (705,853)
Amounts Available for Appropriations 6,031,890 9,673,486 9,129,780 (543,706)
Charges to Appropriations (Outflow):
General government 1,283,068 1,108,244 1,139,654 (31,410)
Public safety 2,020,037 2,095,418 2,035,986 59,432
Cultural and recreation 738,476 856,092 654,253 201,839
Public works 1,016,224 1,466,381 1,468,238 (1,857)
Capital outlay 215,000 377,973 289,925 88,048
Debt service:
Interest and fiscal charges - 5,150 5,140 10
Transfers out 130,800 873,284 167,431 705,853
Total Charges to Appropriations 5,403,605 6,782,542 5,760,627 1,021,915
Budgetary Fund Balance, June 30 628,285$ 2,890,944$ 3,369,153$ (1,565,621)$
See Notes to Required Supplementary Information 70
B.7.a
Packet Pg. 163 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
STREET IMPROVEMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,494,757$ 1,494,757$ 1,494,757$ -$
Resources (Inflows):
Intergovernmental - - 10,197 10,197
Charges for services 89,300 89,300 40,283 (49,017)
Use of money and property 2,600 2,600 11,587 8,987
Amounts Available for Appropriations 1,586,657 1,586,657 1,556,824 (29,833)
Charges to Appropriations (Outflow):
Transfers out 1,000,000 1,047,604 1,011,645 35,959
Total Charges to Appropriations 1,000,000 1,047,604 1,011,645 35,959
Budgetary Fund Balance, June 30 586,657$ 539,053$ 545,179$ 6,126$
See Notes to Required Supplementary Information 71
B.7.a
Packet Pg. 164 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,928,572$ 1,928,572$ 1,928,572$ -$
Resources (Inflows):
Use of money and property - - 685 685
Miscellaneous 50,000 50,000 - (50,000)
Amounts Available for Appropriations 1,978,572 1,978,572 1,929,257 (49,315)
Charges to Appropriations (Outflow):
Economic development 8,200 43,200 9,585 33,615
Total Charges to Appropriations 8,200 43,200 9,585 33,615
Budgetary Fund Balance, June 30 1,970,372$ 1,935,372$ 1,919,672$ (15,700)$
See Notes to Required Supplementary Information 72
B.7.a
Packet Pg. 165 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2018
Note 1: Budgetary Data
The annual budget is adopted by the City Council after the holding of a hearing and
provides for the general operation of the City. The operating budget includes proposed
expenditures and the means of financing them.
The City Council approves total budgeted appropriations and any amendments to
appropriations throughout the year. This "appropriated budget" (as defined by
GASB Code Section 2400.109) covers City expenditures in all governmental funds, except
for the Public Financing Authority Debt Service Fund. This entity does not adopt an annual
budget as effective budgetary control is achieved through bond indenture and other
instrument provisions. Actual expenditures may not exceed budgeted appropriations at the
fund level.
Formal budgetary integration is employed as a management control device during the year.
Commitments for materials and services, such as purchase orders and contracts, are
recorded as encumbrances to assist in controlling expenditures. Encumbrances and
unencumbered appropriations lapse at year-end.
Annual budgets for the General and Special Revenue Funds are adopted on a basis
consistent with accounting principles generally accepted in the United States of America.
Accordingly, actual revenues and expenditures can be compared with related budgeted
amounts without any significant reconciling items.
Capital projects are budgeted through the Capital Project Funds. Appropriations for capital
projects authorized, but not constructed or completed during the year, lapse at year-end,
and are then included as a part of appropriations in the following year's annual budget.
73
B.7.a
Packet Pg. 166 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments 193,871$ 53,416$ 25,124$ 80,929$
Receivables:
Accounts Receivable - - - -
Due from other governments - - - 4,094
Due from other funds 9,000 9,000 - -
Total Assets 202,871$ 62,416$ 25,124$ 85,023$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable -$ -$ -$ -$
Due to other funds - - - -
Total Liabilities - - - -
Deferred inflows of resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:
Nonspendable:
Permanent fund principal - - - -
Restricted for:
Community development projects - 62,416 - -
Public safety - - 25,124 -
Public works 202,871 - - 85,023
Unassigned - - - -
Total Fund Balances 202,871 62,416 25,124 85,023
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 202,871$ 62,416$ 25,124$ 85,023$
Special Revenue Funds
Storm Drain
Improvement
Park
Development
AB 3229
COPS Fund
Air Quality
Improvement
74
B.7.a
Packet Pg. 167 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Receivables:
Accounts Receivable
Due from other governments
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Permanent fund principal
Restricted for:
Community development projects
Public safety
Public works
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
128,519$ 22,733$ 306,048$ 402,611$
- - - -
26,356 3,780 - 53,544
- - 9,000 -
154,875$ 26,513$ 315,048$ 456,155$
10,633$ 22,240$ -$ 858$
- - - -
10,633 22,240 - 858
- 561 - -
- 561 - -
- - - -
- - 315,048 -
- - - -
144,242 3,712 - 455,297
- - - -
144,242 3,712 315,048 455,297
154,875$ 26,513$ 315,048$ 456,155$
Special Revenue Funds
Facilities
Development Measure I
State Gas
Tax
Traffic
Safety
75
B.7.a
Packet Pg. 168 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Receivables:
Accounts Receivable
Due from other governments
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Permanent fund principal
Restricted for:
Community development projects
Public safety
Public works
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
-$ 5,497$ 419,136$ 34$
- - - -
32,809 - - 5,000
- - - -
32,809$ 5,497$ 419,136$ 5,034$
1,227$ 189$ -$ -$
24,951 - - -
26,178 189 - -
32,809 - - 5,000
32,809 - - 5,000
- - - -
- - 419,136 34
- - - -
- 5,308 - -
(26,178) - - -
(26,178) 5,308 419,136 34
32,809$ 5,497$ 419,136$ 5,034$
Special Revenue Funds
CDBG
Special
Districts
Landscape &
Lighting
Spring
Mountain
Ranch
Cal Recycle
Grant
76
B.7.a
Packet Pg. 169 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Receivables:
Accounts Receivable
Due from other governments
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Permanent fund principal
Restricted for:
Community development projects
Public safety
Public works
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
33,057$ 42,014$ -$ 2,436$
2,303 5,415 - -
- - 115,077 -
- - - -
35,360$ 47,429$ 115,077$ 2,436$
443$ -$ 15,580$ -$
- - 99,497 36,000
443 - 115,077 36,000
- - 70,622 -
- - 70,622 -
- - - -
34,917 47,429 - -
- - - -
- - - -
- - (70,622) (33,564)
34,917 47,429 (70,622) (33,564)
35,360$ 47,429$ 115,077$ 2,436$
Special Revenue Funds
Senior Bus
Program
Fund
Public,
Educational &
Government
Access
Active
Transportation
Program
Enhanced
Infrastructure
Financing
District
77
B.7.a
Packet Pg. 170 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Receivables:
Accounts Receivable
Due from other governments
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Permanent fund principal
Restricted for:
Community development projects
Public safety
Public works
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
1,029,762$ 2,379$ 2,107$ 119,595$
- - - -
- - - -
- - - -
1,029,762$ 2,379$ 2,107$ 119,595$
110,449$ -$ -$ 7,619$
- - - -
110,449 - - 7,619
- - 2,632 -
- - 2,632 -
- - - -
- - - -
- - - -
919,313 2,379 - 111,976
- - (525) -
919,313 2,379 (525) 111,976
1,029,762$ 2,379$ 2,107$ 119,595$
Capital Projects Funds
Capital
Improvement-
Streets
Barton /
Colton
Bridge
Capital
Projects
Capital
Project -
Parks
78
B.7.a
Packet Pg. 171 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Assets:
Cash and investments
Receivables:
Accounts Receivable
Due from other governments
Due from other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Permanent fund principal
Restricted for:
Community development projects
Public safety
Public works
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Permanent
Fund
13,119$ 2,882,387$
-7,718
-240,660
-27,000
13,119$ 3,157,765$
-$169,238$
-160,448
-329,686
-111,624
-111,624
13,017 13,017
102 879,082
-25,124
-1,930,121
-(130,889)
13,119 2,716,455
13,119$ 3,157,765$
Total Nonmajor
Governmental
Funds
Dog Park
Endowment
fund
79
B.7.a
Packet Pg. 172 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - - 104,558 14,665
Charges for services 20,106 65,170 - -
Use of money and property 2,193 1,486 314 833
Fines and forfeitures - - - -
Miscellaneous - - - -
Total Revenues 22,299 66,656 104,872 15,498
Expenditures:
Current:
General government - - - -
Public safety - - 100,550 -
Cultural and recreation - - - -
Public works - - - -
Capital outlay - - - -
Total Expenditures - - 100,550 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 22,299 66,656 4,322 15,498
Other Financing Sources (Uses):
Transfers in - - - -
Transfers out - (436,000) - (5,000)
Total Other Financing Sources
(Uses)- (436,000) - (5,000)
Net Change in Fund Balances 22,299 (369,344) 4,322 10,498
Fund Balances, Beginning of Year 180,572 431,760 20,802 74,525
Fund Balances, End of Year 202,871$ 62,416$ 25,124$ 85,023$
Special Revenue Funds
Storm Drain
Improvement
Park
Development
AB 3229
COPS Fund
Air Quality
Improvement
80
B.7.a
Packet Pg. 173 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Cultural and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
Traffic Safety Measure I
-$ -$ -$ -$
340,794 - - 217,689
- - 13,714 -
435 294 5,736 4,214
- 8,517 - -
- - - -
341,229 8,811 19,450 221,903
- - - -
- 3,094 - -
- - 7,600 -
301,882 - - 44,732
- 20,000 - 29,480
301,882 23,094 7,600 74,212
39,347 (14,283) 11,850 147,691
107,431 - - -
(113,485) - - (12,733)
(6,054) - - (12,733)
33,293 (14,283) 11,850 134,958
110,949 17,995 303,198 320,339
144,242$ 3,712$ 315,048$ 455,297$
State Gas Tax
Special Revenue Funds
Facilities
Development
81
B.7.a
Packet Pg. 174 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Cultural and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ 19,204$ -$ -$
18,926 - - -
- - - -
- 21 4,856 -
- - - -
- - - -
18,926 19,225 4,856 -
- - - -
- - - -
- - - -
46,536 12,727 - -
- - - -
46,536 12,727 - -
(27,610) 6,498 4,856 -
- - - -
- - - -
- - - -
(27,610) 6,498 4,856 -
1,432 (1,190) 414,280 34
(26,178)$ 5,308$ 419,136$ 34$
Special Revenue Funds
CDBG
Special
Districts
Landscape &
Lighting
Spring
Mountain
Ranch
Cal Recycle
Grant
82
B.7.a
Packet Pg. 175 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Cultural and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
-$ -$ -$ -$
37,440 - 140,344 -
434 - - -
235 385 - 109
- - - -
- 22,483 - -
38,109 22,868 140,344 109
- - - 16,915
- - - -
38,230 - 158,420 -
- - - -
- - - -
38,230 - 158,420 16,915
(121) 22,868 (18,076) (16,806)
15,000 - - -
- - - -
15,000 - - -
14,879 22,868 (18,076) (16,806)
20,038 24,561 (52,546) (16,758)
34,917$ 47,429$ (70,622)$ (33,564)$
Senior Bus
Program Fund
Public,
Educational &
Government
Access
Active
Transportation
Program
Enhanced
Infrastructure
Financing
District
Special Revenue Funds
83
B.7.a
Packet Pg. 176 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Cultural and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$
- - - -
- - - -
6,741 27 - 2,919
- - - -
- - 936 -
6,741 27 936 2,919
- - - -
- - - -
- - - -
95,327 - 936 -
116,676 - - 336,119
212,003 - 936 336,119
(205,262) 27 - (333,200)
1,137,863 - - 486,000
- - - (50,000)
1,137,863 - - 436,000
932,601 27 - 102,800
(13,288) 2,352 (525) 9,176
919,313$ 2,379$ (525)$ 111,976$
Capital
Improvement-
Streets
Barton /
Colton Bridge
Capital
Projects
Capital
Project - Parks
Capital Projects Funds
84
B.7.a
Packet Pg. 177 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Cultural and recreation
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Permanent
Fund
-$19,204$
-874,416
-99,424
102 30,900
-8,517
13,017 36,436
13,119 1,068,897
-16,915
-103,644
-204,250
-502,140
-502,275
-1,329,224
13,119 (260,327)
-1,746,294
-(617,218)
-1,129,076
13,119 868,749
-1,847,706
13,119$ 2,716,455$
Dog Park
Endowment
fund
Total
Nonmajor
Governmental
Funds
85
B.7.a
Packet Pg. 178 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
STORM DRAIN IMPROVEMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 180,572$ 180,572$ 180,572$ -$
Resources (Inflows):
Charges for services 15,000 15,000 20,106 5,106
Use of money and property 900 900 2,193 1,293
Amounts Available for Appropriations 196,472 196,472 202,871 6,399
Budgetary Fund Balance, June 30 196,472$ 196,472$ 202,871$ 6,399$
86
B.7.a
Packet Pg. 179 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
PARK DEVELOPMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 431,760$ 431,760$ 431,760$ -$
Resources (Inflows):
Charges for services 50,000 50,000 65,170 15,170
Use of money and property 2,000 2,000 1,486 (514)
Amounts Available for Appropriations 483,760 483,760 498,416 14,656
Charges to Appropriations (Outflow):
Transfers out 310,000 436,000 436,000 -
Total Charges to Appropriations 310,000 436,000 436,000 -
Budgetary Fund Balance, June 30 173,760$ 47,760$ 62,416$ 14,656$
87
B.7.a
Packet Pg. 180 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
AB 3229 COPS FUND
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 20,802$ 20,802$ 20,802$ -$
Resources (Inflows):
Intergovernmental 100,000 100,000 104,558 4,558
Use of money and property 100 100 314 214
Amounts Available for Appropriations 120,902 120,902 125,674 4,772
Charges to Appropriations (Outflow):
Public safety 100,100 100,100 100,550 (450)
Total Charges to Appropriations 100,100 100,100 100,550 (450)
Budgetary Fund Balance, June 30 20,802$ 20,802$ 25,124$ 4,322$
88
B.7.a
Packet Pg. 181 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 74,525$ 74,525$ 74,525$ -$
Resources (Inflows):
Intergovernmental 14,000 14,000 14,665 665
Use of money and property 100 100 833 733
Amounts Available for Appropriations 88,625 88,625 90,023 1,398
Charges to Appropriations (Outflow):
Public works 5,500 5,500 - 5,500
Capital outlay - 55,075 - 55,075
Transfers out 5,000 5,000 5,000 -
Total Charges to Appropriations 10,500 65,575 5,000 60,575
Budgetary Fund Balance, June 30 78,125$ 23,050$ 85,023$ 61,973$
89
B.7.a
Packet Pg. 182 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 110,949$ 110,949$ 110,949$ -$
Resources (Inflows):
Intergovernmental 343,982 343,982 340,794 (3,188)
Use of money and property 14,591 14,591 435 (14,156)
Transfers in 90,800 107,431 107,431 -
Amounts Available for Appropriations 560,322 576,953 559,609 (17,344)
Charges to Appropriations (Outflow):
Public works 447,401 301,900 301,882 18
Transfers out - 230,890 113,485 117,405
Total Charges to Appropriations 447,401 532,790 415,367 117,423
Budgetary Fund Balance, June 30 112,921$ 44,163$ 144,242$ 100,079$
90
B.7.a
Packet Pg. 183 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 17,995$ 17,995$ 17,995$ -$
Resources (Inflows):
Use of money and property 175 175 294 119
Fines and forfeitures 10,000 10,000 8,517 (1,483)
Amounts Available for Appropriations 28,170 28,170 26,806 (1,364)
Charges to Appropriations (Outflow):
Public safety 20,000 20,000 3,094 16,906
Capital outlay - 20,000 20,000 -
Total Charges to Appropriations 20,000 40,000 23,094 16,906
Budgetary Fund Balance, June 30 8,170$ (11,830)$ 3,712$ 15,542$
91
B.7.a
Packet Pg. 184 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
FACILITIES DEVELOPMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 303,198$ 303,198$ 303,198$ -$
Resources (Inflows):
Charges for services 15,000 15,000 13,714 (1,286)
Use of money and property 150 150 5,736 5,586
Amounts Available for Appropriations 318,348 318,348 322,648 4,300
Charges to Appropriation (Outflow):
Parks and recreation 50,000 50,000 7,600 42,400
Total Charges to Appropriations 50,000 50,000 7,600 42,400
Budgetary Fund Balance, June 30 268,348$ 268,348$ 315,048$ 46,700$
92
B.7.a
Packet Pg. 185 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
MEASURE I
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 320,339$ 320,339$ 320,339$ -$
Resources (Inflows):
Intergovernmental 190,000 190,000 217,689 27,689
Use of money and property 3,500 3,500 4,214 714
Amounts Available for Appropriations 513,839 513,839 542,242 28,403
Charges to Appropriations (Outflow):
Public works 233,000 303,000 44,732 258,268
Capital outlay 100,000 30,000 29,480 520
Transfers out - 12,733 12,733 -
Total Charges to Appropriations 333,000 345,733 86,945 258,788
Budgetary Fund Balance, June 30 180,839$ 168,106$ 455,297$ 287,191$
93
B.7.a
Packet Pg. 186 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
CDBG
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,432$ 1,432$ 1,432$ -$
Resources (Inflows):
Intergovernmental 46,537 56,537 18,926 (37,611)
Amounts Available for Appropriations 47,969 57,969 20,358 (37,611)
Charges to Appropriations (Outflow):
Public works 46,537 56,537 46,536 10,001
Total Charges to Appropriations 46,537 56,537 46,536 10,001
Budgetary Fund Balance, June 30 1,432$ 1,432$ (26,178)$ (27,610)$
94
B.7.a
Packet Pg. 187 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
SPECIAL DISTRICTS LANDSCAPE & LIGHTING
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,190)$ (1,190)$ (1,190)$ -$
Resources (Inflows):
Taxes 12,000 12,000 19,204 7,204
Use of money and property - - 21 21
Fines and forfeitures 850 850 - (850)
Amounts Available for Appropriations 11,660 11,660 18,035 6,375
Charges to Appropriations (Outflow):
Public works 12,850 12,850 12,727 123
Total Charges to Appropriations 12,850 12,850 12,727 123
Budgetary Fund Balance, June 30 (1,190)$ (1,190)$ 5,308$ 6,498$
95
B.7.a
Packet Pg. 188 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
SPRING MOUNTAIN RANCH
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 414,280$ 414,280$ 414,280$ -$
Resources (Inflows):
Use of money and property 1,000 1,000 4,856 3,856
Amounts Available for Appropriations 415,280 415,280 419,136 3,856
Budgetary Fund Balance, June 30 415,280$ 415,280$ 419,136$ 3,856$
96
B.7.a
Packet Pg. 189 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
SENIOR BUS PROGRAM FUND
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 20,038$ 20,038$ 20,038$ -$
Resources (Inflows):
Intergovernmental 42,778 42,778 37,440 (5,338)
Charges for services 2,400 2,400 434 (1,966)
Use of money and property - - 235 235
Transfers in 15,000 15,000 15,000 -
Amounts Available for Appropriations 80,216 80,216 73,147 (7,069)
Charges to Appropriation (Outflow):
Parks and recreation 34,984 34,984 38,230 (3,246)
Total Charges to Appropriations 34,984 34,984 38,230 (3,246)
Budgetary Fund Balance, June 30 45,232$ 45,232$ 34,917$ (10,315)$
97
B.7.a
Packet Pg. 190 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
PUBLIC, EDUCATIONAL & GOVERNMENT ACCESS
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 24,561$ 24,561$ 24,561$ -$
Resources (Inflows):
Use of money and property - - 385 385
Miscellaneous 22,800 22,800 22,483 (317)
Amounts Available for Appropriations 47,361 47,361 47,429 68
Budgetary Fund Balance, June 30 47,361$ 47,361$ 47,429$ 68$
98
B.7.a
Packet Pg. 191 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
ACTIVE TRANSPORTATION PROGRAM
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (52,546)$ (52,546)$ (52,546)$ -$
Resources (Inflows):
Intergovernmental 280,000 280,000 140,344 (139,656)
Amounts Available for Appropriations 227,454 227,454 87,798 (139,656)
Charges to Appropriation (Outflow):
Parks and recreation 280,000 280,000 158,420 121,580
Total Charges to Appropriations 280,000 280,000 158,420 121,580
Budgetary Fund Balance, June 30 (52,546)$ (52,546)$ (70,622)$ (18,076)$
99
B.7.a
Packet Pg. 192 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
ENHANCED INFRASTRUCTURE FINANCING DISTRICT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (16,758)$ (16,758)$ (16,758)$ -$
Resources (Inflows):
Use of money and property - - 109 109
Amounts Available for Appropriations (16,758) (16,758) (16,649) 109
Charges to Appropriation (Outflow):
General government 28,000 28,000 16,915 11,085
Total Charges to Appropriations 28,000 28,000 16,915 11,085
Budgetary Fund Balance, June 30 (44,758)$ (44,758)$ (33,564)$ 11,194$
100
B.7.a
Packet Pg. 193 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT- STREETS
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (13,288)$ (13,288)$ (13,288)$ -$
Resources (Inflows):
Use of money and property - - 6,741 6,741
Transfers in 1,000,000 1,210,337 1,137,863 (72,474)
Amounts Available for Appropriations 986,712 1,197,049 1,131,316 (65,733)
Charges to Appropriations (Outflow):
Public works - 212,733 95,327 117,406
Capital outlay 1,000,000 1,047,604 116,676 930,928
Total Charges to Appropriations 1,000,000 1,260,337 212,003 1,048,334
Budgetary Fund Balance, June 30 (13,288)$ (63,288)$ 919,313$ 982,601$
101
B.7.a
Packet Pg. 194 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECT - PARKS
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,176$ 9,176$ 9,176$ -$
Resources (Inflows):
Use of money and property - - 2,919 2,919
Transfers in 360,000 486,000 486,000 -
Amounts Available for Appropriations 369,176 495,176 498,095 2,919
Charges to Appropriation (Outflow):
Capital outlay 360,000 444,824 336,119 108,705
Transfers out - 50,000 50,000 -
Total Charges to Appropriations 360,000 494,824 386,119 108,705
Budgetary Fund Balance, June 30 9,176$ 352$ 111,976$ 111,624$
102
B.7.a
Packet Pg. 195 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
JUNE 30, 2018
Totals
Assets:
Cash and investments 427,513$ 85,882$ 513,395$
Total Assets 427,513$ 85,882$ 513,395$
Liabilities:
Accounts payable 493$ -$ 493$
Deposits payable 427,020 85,882 512,902
Total Liabilities 427,513$ 85,882$ 513,395$
Refundable
Deposits Trust
Fund
Employees
Deferred Comp
Trust Fund
103
B.7.a
Packet Pg. 196 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
CITY OF GRAND TERRACE
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2018
Balance Balance
7/1/2017 Additions Deductions 6/30/2018
Refundable Deposits Trust Fund
Assets:
Pooled cash and investments 301,919$ 357,505$ 231,911$ 427,513$
Total Assets 301,919$ 357,505$ 231,911$ 427,513$
Liabilities:
Accounts payable 1,535$ 91,153$ 92,195$ 493$
Deposits payable 300,384 354,891 228,255 427,020
Total Liabilities 301,919$ 446,044$ 320,450$ 427,513$
Employees Deferred Comp Trust Fund
Assets:
Pooled cash and investments 88,367$ -$ 2,485$ 85,882$
Total Assets 88,367$ -$ 2,485$ 85,882$
Liabilities:
Deposits payable 88,367$ -$ 2,485$ 85,882$
Total Liabilities 88,367$ -$ 2,485$ 85,882$
Totals - All Agency Funds
Assets:
Pooled cash and investments 390,286$ 357,505$ 234,396$ 513,395$
Total Assets 390,286$ 357,505$ 234,396$ 513,395$
Liabilities:
Accounts payable 1,535$ 91,153$ 92,195$ 493$
Deposits payable 388,751 354,891 230,740 512,902
Total Liabilities 390,286$ 446,044$ 322,935$ 513,395$
104
B.7.a
Packet Pg. 197 Attachment: Exhibit-A - Annual Financial Report Ending June 30, 2018 (Annual Financial Report for the Year Ended June 30, 2018)
June 10, 2019
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, 2018. 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 June 10, 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.
As described in Note 1 to the financial statements, the City changed its accounting policies related to
other postemployment benefits other than pension reporting by adopting Statement of Governmental
Accounting Standards (GASB Statement) No. 75, Acc ounting and Financial Reporting for Post-
Employment Benefits Other Than Pensions in fiscal year 2017-2018 . Accordingly, the
cumulative effect of the accounting change as of the beginning of the year is reported in the government-
wide statement of activities and the proprietary funds statement of revenues, expenses and changes in
net position.
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 estimate(s) affecting the City’s financial statements
were:
Management’s estimates of its net pension liability and total other postemployment
benefits liability are 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.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
B.7.b
Packet Pg. 198 Attachment: Exhibit-B - Audit Communication Letter (Annual Financial Report for the Year Ended June 30, 2018)
To the Honorable Mayor and Members of the City Council
City of Grand Terrace, California
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. 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 10, 2019.
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 10, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the City’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion and analysis, the schedule of
proportionate share of the net pension liability, the schedule of plan contributions, schedule of changes in
the total OPEB liability and related ratios, and budgetary comparison schedules for the General Fund,
Street Improvement Fund, and the Housing Authority Fund 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.
B.7.b
Packet Pg. 199 Attachment: Exhibit-B - Audit Communication Letter (Annual Financial Report for the Year Ended June 30, 2018)
To the Honorable Mayor and Members of the City Council
City of Grand Terrace, California
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 2017-2018 audit:
GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits
Other Than Pensions.
GASB Statement No. 81, Irrevocable Split Interest Agreements.
GASB Statement No. 85, Omnibus 2017.
GASB Statement No. 86, Certain Debt Extinguishment Issues.
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 2018-2019
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 2019-2020
GASB Statement No. 84, Fiduciary Activities.
Fiscal year 2020-2021
GASB Statement No. 87, Leases.
Restriction on Use
This information is intended solely for the use of the 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
B.7.b
Packet Pg. 200 Attachment: Exhibit-B - Audit Communication Letter (Annual Financial Report for the Year Ended June 30, 2018)
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, 2018, 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 10, 2019.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
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. We did identify certain deficiencies in internal control that we consider to be material
weaknesses.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
B.7.c
Packet Pg. 201 Attachment: Exhibit-C - Report on Internal Control (Annual Financial Report for the Year Ended June 30, 2018)
To the Honorable Mayor and Members of the City Council
City of Grand Terrace, California
Accounts Payable Accrual
During our test work of accounts payable, we noted one invoice related to fiscal year 2017-18 that
was paid in fiscal year 2018-19 but not properly recognized as a liability in the proper fiscal year.
This invoice was received after the City’s cut-off date for payables. The City needs to review its
procedures to ensure that all items which relate to the prior fiscal year are appropriately recorded.
Toward that end, we recommend that in addition to the performance of the City’s general cutoff
procedures for payables, the City also review subsequent disbursements for potential accrual.
Management Response:
It is already the City’s policy to review all accounts payable invoices during the 60-day accrual
period. City staff has been advised that in addition to the performance of the City’s general cutoff
procedures for payables, subsequent disbursements that are material to the fund should also be
reviewed for potential accrual. Hence, staff will add to its year-end procedures the careful review
of all invoices paid after the 60-day accrual period and ensure that all items which relate to the prior
fiscal year are appropriately recorded.
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 10, 2019
B.7.c
Packet Pg. 202 Attachment: Exhibit-C - Report on Internal Control (Annual Financial Report for the Year Ended June 30, 2018)
AGENDA REPORT
MEETING DATE: July 23, 2019 Council Item
TITLE: Award of Community Benefit Funds in the Amount of $2,000
to the Grand Terrace High School Football Boosters
PRESENTED BY: Cynthia Fortune, Assistant City Manager
RECOMMENDATION: Approve the Community Benefit Fund grant application from
the Grand Terrace High School Football Boosters and award
the grant amount of $2,000 for their “Honoring Our Veterans”
Event.
2030 VISION STATEMENT:
This staff report supports the following City Council Goals:
• Goal #1 - Ensure Our Fiscal Viability, through the continuous monitoring of
revenue receipts and expenditure disbursements against approved budget
appropriations; and
• Goal #4 – Develop and Implement Successful Partnerships through productive
collaboration with community groups, youth programs and senior organizations.
BACKGROUND:
For the past four (4) fiscal years, the City Council has approved the use of $25,000.00
for the establishment of the Community Benefits Fund. The purpose of the Community
Benefits Fund is to provide funding for local youth programs, community events,
community fee waivers, and be used as an economic development tool for small
business development in the City. Of the $25,000, $5,000.00 has been designated for
the Light Up Grand Terrace activities.
For Fiscal Year 2019-20, City Council has approved the use of $15,000 toward
community benefit funded programs and activities.
Various youth and senior program activities have benefited from the Community
Benefits Fund including the Foundation of Grand Terrace, the REC Center, several
youth sports leagues, and the Friends of the Grand Terrace Library. Below is a
summary of the grants awarded in the last four (4) fiscal years:
Fiscal Year
Approved
Budget
Amount
Awarded
Unused
Balance
FY2015-16 $20,000.00 $12,423.00 $7,577.00
FY2016-17 20,000.00 11,601.00 8,399.00
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Fiscal Year
Approved
Budget
Amount
Awarded
Unused
Balance
FY2017-18 20,000.00 11,347.00 8,653.00
FY2018-19 20,000.00 15,250.00 4,750.00
$80,000.00 $35,943.00 $29,379.00
Allocated to 40th Anniversary Activities $13,853.00
Returned to Fund Balance $15,526.00
Attachment A provides additional detail as to the awarded organizations, and the
amount awarded in each fiscal year.
DISCUSSION:
Application received from the Grand Terrace High School Football Boosters
The Grand Terrace High School (GTHS) Football Boosters promote and support football
in Grand Terrace, California in an atmosphere that is consistent with the educational
philosophy of the school community. The GTHS Football Boosters encourage and
support teamwork, discipline and respect for others that comes from participating in
athletic competition.
The organization has previously applied for, and has received, the following community
benefit grant:
Project Title Date of Award Amount
Grand Terrace Football Community Kick-Off
Event 08/14/2018 $2,000
Below summarizes the current application submitted by the GTHS Football Boosters:
Project Title: GTHS Football Honors OUR Veterans
Project Activity: GTHS Football would like to engage the
community and invite the Veterans in Grand
Terrace and the surrounding area to participate
in an evening dedicated to honoring them and
their service.
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Public Purpose: The goal of the event is to get our community
engaged and excited about high school athletic
programs and bring awareness to how many
Veterans, that so selflessly served our great
Country, call Grand Terrace home. According to
the last US Census over 800 Veterans are
residents of Grand Terrace so they, along with
their families, represent a significant community
presence in our City. They want to honor their
service while encouraging community
involvement at the high school level.
Amount Requested: $2,000.00
Utilization of Funds: Funds will be used to offset costs with promoting
such a large community event. Program costs,
Decorations, T-shirts for Veterans, Food for
Veterans and Volunteers, T-shirts for Volunteers,
as well as funds to hire a Disc Jockey and Photo
Booth service.
RECOMMENDATION:
Staff recommends that the City Council:
1. Approve the Community Benefit Fund grant application for $2,000.00 to the
GTHS Football Boosters.
Upon City Council approval, the applicant will comply with the following, if they have not
already done so:
1. Issue the City of Grand Terrace an invoice for the grant amount;
2. Ensure that the City is mentioned/included as a sponsor in any material
advertising the activity or event;
3. Complete a W -9 form for reporting purposes; and
4. Submit receipts within 30 days of the event/activity showing that the funds
provided were used for their original intent.
Attached is the GTHS Football Boosters completed application.
FISCAL IMPACT:
Funds in the amount of $15,000.00 have been approved for the program and
established in the Community Benefits Fund (Fund 61). If approved, the table below w ill
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show the balances of each category remaining in the fund:
FY2019-20 Community Benefits Fund
Fund
No.
Acct.
No.
Account
Title
Approved
Budget
Awarded
Grants
Balance
as of
July-
2019
Proposed
Grant
Awards
Revised
Balance
61 461-
100
Youth/School
Programs $10,000 ($0) $10,000 ($2,000) $8,000
61 461-
200
Art, Business
& Service
Org.
$5,000 ($0) $5,000 ($0) $5,000
TOTAL $15,000 ($0) $15,000 ($2,000) $13,000
ATTACHMENTS:
• CBF Award History as of July-2019 (PDF)
• CBF 2019-20-01 - GTHS Football Boosters (PDF)
APPROVALS:
Cynthia A. Fortune Completed 07/17/2019 8:03 PM
Finance Completed 07/17/2019 8:04 PM
City Attorney Completed 07/17/2019 8:28 PM
City Manager Completed 07/17/2019 8:29 PM
City Council Pending 07/23/2019 6:00 PM
G.8
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Title 2015-16 2016-17 2017-18 2018-19 TOTAL 2019-20 TOTAL
TO DATE
Proposed in
Jul-2019 REVISED
YOUTH / SCHOOL ORGANIZATIONS
Grand Terrace Community Basketball $1,136 $0 $0 $1,450 $2,586 $0 $2,586
Grand Terrace High School Football Boosters $0 $0 $0 $2,000 $2,000 $2,000 $4,000
Grand Terrace High School Legacy Regiment Boosters $0 $0 $0 $2,000 $2,000 $0 $2,000
Grand Terrace Little League $2,000 $0 $2,000 $0 $4,000 $0 $4,000
Grand Terrace Youth Football & Cheer $0 $4,000 $2,000 $0 $6,000 $0 $6,000
Terrace View Elementary PTA $1,000 $671 $1,517 $700 $3,888 $0 $3,888
$4,136 $4,671 $5,517 $6,150 $20,474 $2,000 $22,474
NON-PROFIT / SERVICE ORGANIZATIONS
American Cancer Society $0 $0 $2,000 $0 $2,000 $0 $2,000
Drug Alternative Program $0 $2,000 $0 $0 $2,000 $0 $2,000
Foundation of Grand Terrace $2,350 $2,000 $1,830 $0 $6,180 $0 $6,180
Friends of Grand Terrace Library $3,750 $2,000 $2,000 $4,000 $11,750 $0 $11,750
Grand Terrace Lions Club $0 $620 $0 $0 $620 $0 $620
Sheriff’s Central Station Explorer Program $0 $0 $0 $2,000 $2,000 $0 $2,000
The REC Center $2,187 $310 $0 $3,100 $5,597 $0 $5,597
$8,287 $6,930 $5,830 $9,100 $30,147 $0 $30,147
TOTAL $12,423 $11,601 $11,347 $15,250 $50,621 $2,000 $52,621
City of Grand Terrace
Community Benefit Grant Awards
GRANT AWARD HISTORY as of June 30, 2019 and Proposed Applications for July-2019
G.8.a
Packet Pg. 207 Attachment: CBF Award History as of July-2019 (July-2019 Award of Community Benefit Funds)
AGENDA REPORT
MEETING DATE: July 23, 2019 Council Item
TITLE: A Resolution of the City Council Establishing an Expanded
Public Noticing and Outreach Policy for Public Hearings and
Public Workshops and Directing City Staff to Process a
Zoning Code Amendment for Projects Subject to Public
Hearings
PRESENTED BY: Sandra Molina, Planning & Development Services Director
RECOMMENDATION: 1) Adopt A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF GRAND TERRACE ADOPTING AN
EXPANDED PUBLIC NOTICING AND OUTREACH
POLICY FOR PUBLIC HEARINGS AND PUBLIC
WORKSHOPS ON DEVELOPMENT RELATED
PROJECTS; and
2) Direct Staff to Process a Code Amendment to Modify
the Minimum Public Hearing Notice Requirements for Site
and Architectural Review, Conditional Use Permit, Variance
and Amendment Applications.
2030 VISION STATEMENT:
This staff report supports the City’s 2030 Vision Plan, Goal #5: Engage in Proactive
Communication by developing regulations to provide expanded noticing procedures on
certain planning applications.
BACKGROUND:
Several applications identified in the zoning code require public hearings before the
Planning Commission, Site and Architectural Review Board and/or City Council. These
applications include Site and Architectural Review, Conditional Use Permit, Varianc e,
and Amendments.
For notification of these types of public hearings, the City adheres to the noticing
requirements established in the California Government Code Sections 65090 and
65091. California Government Code Sections 65090 and 65091 require that n otice of a
public hearing shall be mailed or delivered 10 days prior to a hearing date to all owners
of real property within a 300 foot radius of the subject property; and that notice is
published once in the local newspaper or posted in three public places. The City does
all three types of noticing.
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On March 23, 2019, the City Council directed staff to review these notification
requirements and consider expansion of those requirements for public hearings and
public workshops. The City Council provided this direction to ensure that community
members are informed of public hearings and public workshops that may be of interest
to them. Public noticing helps to ensure that the community is aware of development
projects and encourages more public participation in the planning, development, and
decision-making process.
For purposes of this staff report and proposed resolution, the following terms shall have
the following meanings: (i) a “public hearing” is an official, noticed hearing required by
state law and/or the City’s Municipal Code prior to final action on a land use entitlement
required by the City’s Zoning Code, such as conditional use permit or variance; and (ii)
a “public workshop” is a meeting where the primary purposes are to educate the
community and gather input from community members on a certain development issue
or project, but where no final action on a land use entitlement will be considered.
DISCUSSION:
Pursuant of the Government Code Section 65090(c), in addition to the minimum notice
required by the State, a local agency may give notice of the hearing in any other
manner it deems necessary or desirable. Accordingly, staff is proposing the following
notice requirements.
Mailing and Publishing Requirements
Currently, for public hearings, a notice of a public hearing is mailed or delivered 10 days
prior to a hearing date to all owners of real property within a 300 foot radius of the
subject property. Notice is also published once in the local newspaper and posted in
three public places.
The City has no noticing requirements for public workshops.
To encourage greater community awareness and participation, staff proposes that, for
all public workshops and public hearings, notice be mailed or delivered ten (10) days
prior to the public hearing/public workshop date to all owners of real property and
published as follows:
Lot size Mailing Notification
Radius (applicable to a
public workshop only
when a specific property
is at issue)
Publications in Local
Newspaper
Less than 5 acres 500 feet Legal advertisement
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5 to 9.99 acres 1,000 feet 1/8 page box
advertisement
10 acres or more 1,500 feet 1/8 page box
advertisement
Increased Outreach Efforts
Staff also recommends that greater outreach be provided for all public hearings and
public workshops. These recommended outreach efforts include:
1. Posting notices on the City’s website;
2. Posting notices on Channel 3;
3. Posting notices on the City’s Facebook page;
4. Emailing notices to all persons that have signed up for any email notifications;
5. Emailing a copy of notices to each member of the City Council for information
purposes only; and
6. Emailing a copy of notices to each member of the Planning Commission for
information purposes only.
For these notifications, staff would be responsible for ensur ing that such outreach is
completed.
Implementation of Recommendations
Should the City Council desire to adopt the staff recommendations, the
recommendations would be implemented by two City Council actions.
1. With respect to the distance requirements for public hearings, staff recommends
that the City Council adopt a Zoning Code amendment to reflect these new
requirements, which will become mandatory thereafter and apply to all land use
entitlements which require a public hearing prior to action by the approving body.
As a reminder, the ordinance will first be presented to the Planning Commission
for recommendation and, if so recommended, presented to the City Council for
introduction and first reading.
2. With respect to the noticing requirements for pu blic workshops and all of the
increased outreach efforts outlined above, staff recommends City Council
adoption of a resolution establishing that policy.
Therefore, Staff recommends that the City Council adopt the attached Resolution, which
includes the above recommendations; and direct Staff to process a Zoning Code
Amendment amending the public hearing noticing requirements as recommended
above.
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FISCAL IMPACT:
Staff will incur minimal staff time costs related to the outreach efforts; however, the cost
of mailed notices and publications are paid by the Developer.
ATTACHMENTS:
• City Council Resolution-Expanded Noticing and Outreach Policy(DOCX)
APPROVALS:
Sandra Molina Completed 07/17/2019 6:18 PM
City Attorney Completed 07/18/2019 7:46 AM
Finance Completed 07/18/2019 9:43 AM
City Manager Completed 07/18/2019 11:19 AM
City Council Pending 07/23/2019 6:00 PM
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RESOLUTION NO. 2019-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE ADOPTING AN EXPANDED PUBLIC NOTICING AND
OUTREACH POLICY FOR PUBLIC HEARINGS AND PUBLIC
WORKSHOPS ON DEVELOPMENT RELATED PROJECTS
WHEREAS, California Government Code Sections 65090 and 65091 regulate
public noticing requirements for development projects subject to a public hearing; and
WHEREAS, Government Code Section 65090(c) allows a local agency to give
notice of the hearing in any other manner it deems necessary or desirable, in addition to
the notice requirements of Section 65090; and
WHEREAS, the City of Grand Terrace deems it desirable to establish a policy for
public outreach efforts for public workshops and greater outreach for pub lic hearings.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Grand
Terrace, as follows:
Section 1. This Expanded Public Noticing and Outreach Policy is not a “Project” as
defined by Section 15378 of the California Environmental Quality Act (CEQA)
Guidelines, and therefore, not subject to the provisions of CEQA.
Section 2. The City Council hereby finds that expanding the minimum public noticing
provisions helps to ensure that the community is aware of development projects and
encourages more public participation in the planning, development, and decision -
making process.
Section 3. For purposes of this Resolution, the following terms shall have the following
meanings: (i) a “public hearing” is an official, noticed hearing required by state law
and/or the City’s Municipal Code prior to final action on a land use entitlement required
by the City’s Zoning Code, such as conditional use permit or variance; and (ii) a “public
workshop” is a meeting where the primary purposes are to educate the community and
gather input from community members on a certain development issue or project, but
where no final action on a land use entitlement will be considered.
Section 4. For public hearings, the following notification efforts are hereby adopted,
until such time as an Ordinance of the City Council is adopted, and becomes effective,
amending the City’s Municipal Code to implement the table below. Upon the effective
date of said Ordinance, this Section 4 shall have no further force and effect.
G.9.a
Packet Pg. 214 Attachment: City Council Resolution-Expanded Noticing and Outreach Policy [Revision 5] (Expanded Public Noticing and Outreach
Lot Size of the Project
Site
Mailing Notification
Radius
Publications in Local
Newspaper
Less than 5 acres 500 feet Legal advertisement
5 to 9.99 acres 1,000 feet 1/8 page box
advertisement
10 acres or more 1,500 feet 1/8 page box
advertisement
Section 5. For public hearings, notification shall be provided as required by state law or
the City’s Municipal Code, which ever provides for greater notification. In addition, the
City Council directs staff to provide the following outreach efforts:
1. Posting of all notices on the City’s website;
2. Posting of notices on Channel 3;
3. Posting of notices on the City’s Facebook page
4. Emailing notices to all persons that have signed up for any email
notifications;
5. Emailing a copy of notices to each member of the City Council for
informational purposes only; and
6. Emailing a copy of notices to each member of the Planning Commission for
informational purposes only.
Failure to provide notice of a public hearing in one or more of the six (6) methods listed
above shall neither invalidate the public hearing nor any action taken following said
hearing. It is the intent of the City Council that these six (6) outreach methods are
intended solely for greater community awareness, and are not intended as mandatory
pre-requisites prior to any final action on a land use entitlement set forth in the City’s
Zoning Code.
Section 6. The following notification efforts are hereby adopted for public workshops:
A. Public workshop mailing notices and publications shall be mailed and published a
minimum of 10 days prior to the workshop date and as follows:
Lot Size of the Project
Site
Mailing Notification
Radius (applicable when
a specific property is the
subject of the workshop)
Publications in Local
Newspaper
Less than 5 acres 500 feet Legal advertisement
5 to 9.99 acres 1,000 feet 1/8 page box
advertisement
10 acres or more 1,500 feet 1/8 page box
advertisement
G.9.a
Packet Pg. 215 Attachment: City Council Resolution-Expanded Noticing and Outreach Policy [Revision 5] (Expanded Public Noticing and Outreach
B. Outreach efforts shall include:
1. Posting of all notices on the City’s website;
2. Posting of notices on Channel 3;
3. Posting of notices on the City’s Facebook page
4. Emailing notices to all persons that have signed up for any email
notifications;
5. Emailing a copy of notices to each member of the City Council for
informational purposes only; and
6. Emailing a copy of notices to each member of the Planning Commission
for informational purposes only.
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 2019.
__________________________________
Darcy McNaboe
Mayor
ATTEST:
__________________________________
Debra L. Thomas
City Clerk
APPROVED AS TO FORM:
__________________________________
Adrian R. Guerra
City Attorney
G.9.a
Packet Pg. 216 Attachment: City Council Resolution-Expanded Noticing and Outreach Policy [Revision 5] (Expanded Public Noticing and Outreach