HomeMy WebLinkAboutCity of Glendora - Public Financial ReportPride of the Foothills
CALIFORNIAGLENDORACITY OF
POPULAR ANNUAL FINANCIAL REPORT
FISCAL YEAR JULY 1, 2020 THROUGH JUNE 30, 2021
CITY of GLENDORA
WELCOME AND TABLE OF CONTENTS
About the City and Its Leadership..……………………..………………………………………………....…....1
Elected and Appointed Officials...………..…………………….……………………………….…....…..……..2
City-Wide Organizational Chart…………..…………………….……………………………….…....…..……..3
City Demographics and Key Statistics..………………………………………………………….……..….…..4
The City’s Financial Position….………………………………………………………………….……..……….6
Statement of Activities…………………………………………………………………………...…….……..…..7
The City’s Assets and Investments………………………………………………………………..….……..….8
What the City Owes………………………………………………..………….……………………..…………...9
Governmental Activities: Highlights …………………………..…………………………………..…………..10
Property Tax Highlights...………….……………………………..…………………………….…….…….......11
Sales Tax Highlights...………….………………………………………..……………………...….….............12
Business-Type: Highlights………...………………………………………………..……………………….....13
Government Finance Officers Association (GFOA) PAFR Award……………...……………………….....14
*Generally Accepted Accounting Principles (GAAP) is a combination of authoritative standards and the commonly accepted
way of recording and reporting accounting information. To review the audited GAAP-based, full disclosure financial statements,
please refer to the City's CAFR, which is available on the City's website at www.CityofGlendora.org/Finance
TABLE OF CONTENTS
Dear Reader,
The City of Glendora is pleased to present our Popular
Annual Financial Report (PAFR) for the fiscal year end-
ing June 30, 2021. Our PAFR provides an overview of
the City's financial position in a manner that is easy to
understand. The information in this report is based on
the audited results presented in the City’s Annual Com-
prehensive Financial Report (ACFR). This report also
includes other pertinent information such as the City's
outstanding debt.
It is important to note, this PAFR is unaudited and is
presented on a non-GAAP basis*. This means the
presentation of financial data in this report differs from the GAAP basis presentation in the City's ACFR.
We hope you find this report helpful and encourage
you to access the City's website
(www.cityofglendora.org/Finance) or contact Finance at (626) 914-8245 for more detailed information
about the City's finances.
Adam Raymond Marie Ricci
City Manager Administrative Services Director/City Treasurer
CITY of GLENDORA
1
ABOUT THE CITY
GLENDORA, THE COMMUNITY
GLENDORA QUICK FACTS
Incorporation 1911
Form of Government City Council/City Manager
Governing Body
5 Council Members
Mayor selected annually by/
from Council
Area in Square Miles 19.86
Median Age 41.4
2021 Adopted Budget $79,794,709
Employees 254
Unemployment Rate 8.7%
Sales & Use Tax Rate
(as of 6/30/21) 10.25%
The City of Glendora was founded in 1887 and incorporated as a City in 1911. Glendora is known as
the Pride of the Foothills. The City is located in the eastern portion of the Los Angeles County metro-
politan area, approximately 28 miles from downtown Los Angeles, and is accessible from all parts of
Southern California by way of the Foothill (210) and Orange (57) freeways.
VISION STATEMENT
Glendora will be an inclusive, charm-
ing and vibrant community.
MISSION STATEMENT
The City of Glendora’s mission is to
provide its citizens and business com-
munity effective municipal service
while maintaining our historical sense
of community values.
CITY of GLENDORA
2
ELECTED AND APPOINTED OFFICIALS
ADVISORY BODIES
• Community Services Commission •
• Planning Commission • Board of Library Trustees •
• Water Commission • Business Improvement District Advisory Board •
APPOINTED OFFICIALS & DEPARTMENT HEADS
Adam M. Raymond..................................................................................................City Manager
Moises Lopez…........................................................................................Assistant City Manager
Kathleen R. Sessman...........................................................City Clerk/Communications Director
Marie Ricci……...................................................Administrative Services Director/City Treasurer
Matt Egan...................................................................................................................Police Chief
Jeff Kugel.................................................................................Community Development Director
Alison Sweet...............................................................................................Public Works Director
Janet Stone...........................................................................................................Library Director
John Aguirre....................................................................................Community Services Director
Karen Davis
MAYOR
Michael Allawos
COUNCIL MEMBER
Mendell Thompson
COUNCIL MEMBER
David Fredendall
COUNCIL MEMBER
Gary Boyer
MAYOR PRO TEM
CITY of GLENDORA
3
CITY-WIDE ORGANIZATIONAL CHART
City Attorney City Commissions
& Boards
City Clerk
Administration
Elections
Public Information
& Media
Information Technology
Administrative Services
Utility Billing
Treasury
Finance
Business License
Risk Management
Human Resources
Library
Circulation/Technical/
Facilities Services
Youth Services
Adult Services
Development
Police
Patrol & Investigations
Community Preservation
Animal Control
Code Enforcement
Records & Jail
Community Services
Administration
Teen Center
Recreation
Human Services
Community Development
Planning
Building & Safety
Housing & Economic
Development
Transportation
Public Works
Engineering
Maintenance & Operations
City Facilities
Capital Projects
Water Utilities
City Council
Citizens
City Manager
4
Population 52,558
SOURCE: US CENSUS BUREAU
Median Home Value $755,000
SOURCE: LOS ANGELES COUNTY
RECORDER
Median Household Income $96,132
SOURCE: US CENSUS BUREAU
Median Age 41
SOURCE: US CENSUS BUREAU
Average Household Size 3.01
SOURCE: US CENSUS BUREAU
2021
Citrus Community College District
Glendora Unified School District
Foothill Presbyterian Hospital
County of Los Angeles—DCFS
Walmart
Glendora Grand
Glendora Community Hospital
City of Glendora
Home Depot
Sam’s Club
734
734
590
558
379
314
306
246
185
183
1
1
3
4
5
6
7
8
9
10
2.84%
2.84%
2.29%
2.16%
1.47%
1.22%
1.19%
0.95%
0.72%
0.71%
5
93
$666,211
21,386
1,117
10
1,025.25
13,655
8,391
163
107
227
10,980
12,217
106,644
CITY of GLENDORA
6
THE CITY’S FINANCIAL POSITION
The Statement of Net Position presents information about all of the City’s assets, liabilities, deferred
outflows (e.g., prepaid items), and deferred inflows (e.g., advance collections). The City’s net finan-
cial position is the balance of all assets and deferred outflows, less all liabilities and deferred inflows.
Over time, increases or decreases in the City’s net position may serve as a useful indicator of wheth-
er the financial position of the City is improving or deteriorating. For the fiscal year ended June 30,
2021, the Citywide net position improved by over $15.4 million. The assets of the City exceeded its
liabilities by approximately $172.9 million (net position), which is the combined total of both govern-
mental and business-type activities. The five-year history presented below, indicates positive growth
for the City’s net position.
*Net Position restated in FY2017 and 2020 for GASB 75 and 84 respectively.
GASB 75: required reporting change on City's Other Post Employment costs.
GASB 84: required reporting change on fiduciary activities.
CITY of GLENDORA
7
STATEMENT OF ACTIVITIES
More formally referred to as the Statement of Activities, the City’s income statements reflect all the fi-
nancial activity for the City during the fiscal year ended June 30, 2021. This statement presents infor-
mation to illustrate how the City’s net position changed during the year as a result of the financial activi-
ty (i.e. revenues and expenses). This is a summarized version of the more detailed statement found in
the City’s complete ACFR. For fiscal year ended June 30, 2021, the City’s revenues exceeded expens-
es by $11.96 million.
The City’s revenues increased by $7.4
million, with the majority due to the follow-
ing:
• Voter approved Transaction and Use
Tax revenue increased $1.3 million.
• Water operation revenue increased by
$2.5 million.
• Property Tax revenue increased by $1.1
million
The City’s expenses increased overall by
$0.9 million due to the following:
• Water costs increased $1 million.
• Community Services increased by $1
million.
• Savings from Public Works and Public
Safety salaries helped offset the in-
creases.
*Restatements noted above were the implementation of GASB 75 and 84.
CITY of GLENDORA
8
THE CITY’S ASSETS AND INVESTMENTS
INVESTMENT MANAGEMENT AND FUNDS ALLOCATION
The prioritized objective of the City’s investment policy is to invest public funds in a manner which will provide
the highest investment return with maximum security while meeting the daily cash flow demands of the City
and conforming to all state and local statutes governing the investment of public funds. The objectives of the
Policy are met in the following priority order: Safety, Liquidity and Return on Investments. The chart below re-
flects the types of investments held by the City as of June 30, 2021.
1.207%
June 2021
1.731%
June 2020
AVERAGE YIELD TO MATURITY
Yield to maturity is the total return
of investment anticipated if the in-
vestment is held until maturity, this
figure is expressed as monthly av-
erage. Based on information pre-
pared by the City staff, at June
30th, the City’s average yield to
maturity is trending down from pre-
vious years due to COVID-19 and
impact from inflation.
INVESTMENT TYPE ● $113,414,548
CAPITAL ASSETS, NET OF DEPRECIATION
The City develops a five-year Capital Improvement Pro-
gram (CIP) that projects capital needs with a focus on pub-
lic safety, street repair and maintenance, water main sys-
tems, water operations, parks, and general infrastructure.
In fiscal year 2021, major capital improvements included
projects for roads ($1.6 million), water main replacements
and major reservoir rehabilitations ($1.7 million), and im-
provements to facilities and parks ($0.75 million).
CITY of GLENDORA
9
WHAT THE CITY OWES
PINNACLE PUBLIC LEASE
$0.6 million
WATER REVENUE BONDS
$17.6 million
CLAIMS AND JUDGEMENTS
$7.5 million
The City entered into a lease agreement for the Energy Efficiency
Performance project.
Assigned liability related to unused employee earned vacation and
compensatory leave time.
Actuarial estimates of current and potential insurance claims and
settlements.
The bonds were issued to acquire, purchase, construct, or improve
major infrastructure related to Water operations.
Country Club Reservoir
As of June 30, 2021, the City had outstanding long-term debt totaling $88.1 million. The debt increased
by $62.7 million in 2020 due to the issuance of the 2019 Pension Obligation Bond. A five-year history
of the long-term debt for governmental and business-type activities shows the City has been reducing
debt levels over time up until that point but continues to pay down the debt.
Not included above, are the increases in
pension costs from CalPERS and Other
Postretirement Employment Benefits
(OPEB). In September 2019, the City
issued $64.4 million in pension obliga-
tion bonds to pay down the actuarial ac-
crued liability. Reduction in pension
costs have been reflected as of June 30,
2021.
Bonds issued to pay down a portion of the City’s unfunded em-
ployee pensions.
COMPENSATED ABSENCES
$1.1 million
2019 PENSION OBLIGATION BONDS
$61.3 million
CITY of GLENDORA
10
GOVERNMENTAL ACTIVITIES: HIGHLIGHTS
The General Fund is the government’s primary operating fund and the most discretionary. It
accounts for all financial resources of the general government, except those required to be rec-
orded in another fund. A five-year history of the fund balance and its designations is below.
The fund balance of the General Fund at June 30, 2021 was $30.0 million, a $4.8 million in-
crease from 2020.
Fund Balance Components
Nonspendable—Inherently non-
spendable (e.g., advance to Successor
Agency)
Restricted—Externally enforceable limi-
tations on use (e.g., grant funds)
Committed—Self-imposed limitations
on use (e.g., contingency reserve)
Assigned—Limitation resulting from
intended use (e.g., PERS)
Unassigned—Residual net resources
(e.g., discretionary)
Functions of the City can be separated into two categories, those principally supported by taxes and
intergovernmental revenues (governmental activities) and those intended to recover all or a significant
portion of its costs through user fees and charges (business-type).
Sales and Use Tax—consumable
tax levied at the point-of-sale.
Property Tax—legally enforceable
liens on property as of January 1.
Charges for Services—revenue
from charges to customers, appli-
cants, or others who purchase, use,
or directly benefits from the goods,
services, or privileges provided, or
are otherwise directly affected by the
service.
Grants and Contributions—
revenue arising from mandatory and
voluntary non-exchange transactions
with other governments, organiza-
tions, or individuals that are restrict-
ed for use in a specified program.
Other—includes transit occupancy tax, franchise fees, Measure E transaction and use tax and invest-
ment income.
CITY of GLENDORA
11
PROPERTY TAX HIGHLIGHTS
Property Tax is a major revenue source for the City and the majority belongs to the General Fund. The
tax is imposed on real (secured) and personal (unsecured) property. It’s constitutionally limited to one
percent of assessed value by Proposition 13. It is important to note the City’s share of the base proper-
ty tax amounts to approximately 10% percent of the Proposition 13 one percent levy limitation. As of
June 30, 2021, the City received $15.1 million, which is $1.1 million more than the prior year.
CITY of GLENDORA
12
SALES TAX HIGHLIGHTS
Top 5 Taxable Sales by Category (in millions)
Source: HdL Coren & Cone
All Other Outlets $240.6
Other Retail Stores $193.2
Auto Dealers $183.4
General Merchandise $127.3
Restaurants/Fast Food $92.4
Tax Rate and Recipient Distribution of Sales Tax on a $100 Purchase
3.94% State of California $ 3.94 General Fund
1.00% City of Glendora $ 1.00 General Fund 100% Discretionary
0.75% City of Glendora Use Tax $ 0.75 Measure E Approved - Transaction Use Tax
0.50% County Public Safety (Prop 172) $ 0.50 County and City (General Fund-Public Safety)
1.56% County Realignment $ 1.56 Mental Health/Welfare/Public Safety
0.25% Countywide Transportation Fund $ 0.25 County Transportation
2.00% County of Los Angeles $ 2.00 Measure M & R and Proposition A & C
0.25% County of Los Angeles $ 0.25 Homelessness Services Tax
Sales Tax is the largest revenue source for the General Fund and is levied at the point-of-sale. The
amount of money collected through Sales Tax is contingent upon dollars spent on goods and services
throughout the year. For fiscal year 2021, the City of Glendora’s Sales Tax rate was 10.25%. The
Sales Tax rate is set and imposed at the County level and is divided as seen in the below chart. The
voters approved Measure E (a Transaction & Use Tax of 0.75%) in March 2019, which became effec-
tive in July 2019. Fiscal year 2021 saw an increase of $3.1 million from the previous year. In the graph
below, the percent change line represents change year to year and demonstrates the volatility of sales
tax revenues. The passage of Measure E drastically increased the revenues for the City of Glendora.
This is the only section of the PAFR where Measure E is included with Sales Taxes, all other sections
of the PAFR list Measure E as Other Taxes. Measure E is solely included for comparison purposes.
CITY of GLENDORA
13
BUSINESS-TYPE ACTIVITIES: HIGHLIGHTS
The Water fund has consist-
ently operated well from year
to year, with revenue ex-
ceeding expenses averaging
around $6.3 million over the
past five years.
Per City policy, the Water
fund maintains a Water Op-
erations Working Capital and
Emergency Reserve, in an
amount equal to the cost to
fund operations for a six-
month period.
After funding is met for the
Water Operations Reserve,
any unencumbered funds at
the end of the fiscal year are transferred from the Water Operations Fund to the Water Capital Projects
Fund. This is to fund future capital and maintenance improvements. At the end of fiscal year 2021, the
City transferred $4.8 million to the Water Capital Projects Fund.
The Statement of Revenues, Expenses, and Changes in Net Position presents information in an in-
come statement format and reflects all the financial activity for the Water Fund during fiscal year ended
June 30, 2021. Below is a summarized graph of the Statement of Revenues, Expenses, and Changes
in Net Position.
The Water Fund is the only operating fund within the City’s business-type activities. It accounts
for the activities, operational and capital improvement, for the City’s water utility system. A five-
year history of the fund balance is below. The fund balance increased by $7.4 million from
FY2020, and these funds are required to be set aside for capital improvement projects.
CITY of GLENDORA
14
GFOA PAFR AWARD
Government Finance Officers
Association of the United States and
Canada (GFOA) has given an Award
for Outstanding Achievement in
Popular Annual Financial Report to
the City of Glendora for its Popular
Annual Financial Report for the fiscal
year ended June 30, 2020. The
Award for Outstanding achievement in
Popular Annual Financial Reporting is
a prestigious national award
recognizing conformance with the
highest standards for preparation of
state and local government popular
reports.
In order to receive an Award for
Outstanding Achievement in Popular
Annual Financial Reporting, a
government unit must publish a
Popular Annual Financial Report,
whose contents conform to program
standards of creativity, presentation,
understandability, and reader appeal.
An Award for Outstanding
Achievement in Popular Annual
Financial Reporting is valid for a
period of one year only. The City of
Glendora received the Popular Award
for the second time in a row for the
fiscal year ended June 30, 2020. We
believe our current report continues to
conform to the Popular Annual Finan-
cial Reporting requirements and we
are submitting it to GFOA to deter-
mine its eligibility for another award.
GFOA AWARDS
CITY of GLENDORA
15
CITY OF GLENDORA
116 E. FOOTHILL BOULEVARD
GLENDORA, CA 91741
www.CityofGlendora.org
Pride of the Foothills