HomeMy WebLinkAboutCity of San Bernardino - Public Financial Report
POPULAR ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
CITY OF SAN BERNARDINO, CALIFORNIA SBCity.org
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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LETTER FROM THE FINANCE DIRECTOR
To The Reader
In an effort to provide the City of San Bernardino community with transparent and accessible financial
information, I am pleased to present the City of San Bernardino’s Popular Annual Financial Report
(PAFR) for the year ended June 30, 2021.
The PAFR provides an overview of the City’s financial position, the results of select funds, significant
assets, and outstanding debt structure in a manner that is easy to understand. The PAFR is prepared
primarily from detailed information contained in the City’s Annual Comprehensive Financial Report
(ACFR), which is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and
includes financial statements audited by Rogers, Anderson, Malody, & Scott, LLP.
The objective of this report is to simplify the information in the ACFR and better inform the public about
the overall financial condition of the City without the heavy use of technical accounting terms or
excessive detail. The PAFR is not intended to provide a complete financial picture of the City in
accordance with GAAP. Individuals who desire to review the full disclosure financial statements included
in the ACFR should refer to the City’s website. I hope that you find this report helpful and encourage
you to access the City’s website (www.sbcity.org/cityhall/finance/default.asp) or contact the Finance
department at (909) 384-5242 for more detailed information about the City’s finances.
Sincerely,
Barbara Whitehorn
Director of Finance
Table of Contents
About the City ........................................................................................................................................ 2
Demographics and Statistics .................................................................................................................. 3
Financial Highlights ................................................................................................................................ 4
Financial Position ................................................................................................................................... 5
Investments ............................................................................................................................................ 6
Capital Assets ........................................................................................................................................ 7
Long-Term Debt ..................................................................................................................................... 8
Net Pension Liability .............................................................................................................................. 9
Statement of Activities ......................................................................................................................... 10
Governmental Activity Highlights ......................................................................................................... 12
General Fund Highlights ...................................................................................................................... 13
Business-Type Activity Highlights ........................................................................................................ 17
Glossary ............................................................................................................................................... 18
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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ABOUT THE CITY
Government & City Profile
The City of San Bernardino operates under the Council-Manager form of government. Under this
organizational structure, the elected Mayor and City Council appoint a City Manager to act as the Chief
Executive Officer of the City. The Mayor and City Council represent the legislative branch of the
government and are responsible for setting City policy and allocating resources. The City Manager and
staff represent the executive branch of the government and are tasked with recommending policy and
implementing the Mayor and City Council’s direction. The Mayor is elected at-large, while City Council
members are elected by voters in each of seven separate wards.
CITIZENS OF SAN BERNARDINO
|
MAYOR AND CITY COUNCIL
John Valdivia
Mayor
Theodore
Sanchez
1st Ward
Sandra Ibarra
2nd Ward
Juan
Figueroa
3rd Ward
Fred Shorett
4th Ward
Ben Reynoso
5th Ward
Kimberly
Calvin
6th Ward
Damon
Alexander
7th Ward
|
CITY DEPARTMENTS
City Manager | City Attorney | City Clerk | Animal Services | Community and Economic Development | Finance |
Human Resources | Information Technology | Library | Parks and Recreation | Police | Public Works
The City of San Bernardino, incorporated as a Charter City in 1854, is located in Southern California,
approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The City currently
occupies a land area of approximately 59 square miles. The population of the City, as estimated by
the California Department of Finance, is approximately 223,000, placing the City as the 18th largest city
in California.
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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DEMOGRAPHICS AND STATISTICS
Median Home Value:
$249,400
Median Household
Income:
$45,834
Unemployment Rate:
12.1%
69.4% of the Population 25 years & over
have a high school Degree
Median Age:
29.9
1 Police Station
372 Police Personnel
36 Community Parks
8 Community Centers
4 Libraries
619 Miles of Street
45,490 Water Connections
60,777 Sewer Connections
7,400 City-maintained
Streetlights
Hispanic
65%
White
15%
Black
14%
Asian
4%Other
2%
City Population
Hispanic White Black Asian Other
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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FINANCIAL HIGHLIGHTS
The financial highlights for the fiscal year ended June 30, 2021 include:
Citywide revenues exceeded expenses by $36.7 million,
due to increased revenues related to the City's
governmental activities.
The City's Sales Tax revenues increased over $20
million, or 43%, due primarily to the passage of
Measure S in November 2020 and increased economic
activity as consumer spending recovered from the
previous year.
The City's reserve funds for Emergencies and Economic
Contingencies were fully funded as of June 30, 2021,
totaling $32.72 million.
The City completed over $18 million in Infrastructure
and other capital projects for the year ended June 30,
2021, consisting primarily of street and park
improvements as well as various water and sewer
infrastructure upgrades.
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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FINANCIAL POSITION
The Statement of Net Position financial statement presents information about the City’s assets,
liabilities, deferred outflows (i.e., prepaid items) and deferred inflows (i.e., advance collections). The
City’s net financial 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 whether the financial position of the City is improving or deteriorating. For the fiscal year
ended June 30, 2021, the City’s net position improved by $36.66 million.
STATEMENT OF NET POSITION – CITYWIDE (ALL FUNDS)
City Assets (What We Own)2020 2021
Current Assets consisting mainly of cash and amounts owed to the City $433,981,986 $516,798,772
Net Capital Assets consisting mainly of buildings, equipment, and vehicles 581,956,311 595,374,976
TOTAL CITY ASSETS $1,015,938,297 $1,112,173,748
Deferred Outflows of Resources, which have a positive effect on Net Position $50,516,709 $57,114,306
TOTAL CITY ASSETS AND DEFERRED OUTFLOWS $1,066,455,006 $1,169,288,054
City Liabilities (What We Owe)2020 2021
Current Liabilities consisting mainly of all amounts the City owes, except for debt $32,352,117 $81,630,898
Non-Current Liabilities consisting of long-term obligations, including pensions 667,897,416 683,200,526
TOTAL CITY LIABILITIES $700,249,533 $764,831,424
Deferred Inflows of Resources, which have a negative effect on Net Position $8,552,906 $10,146,999
TOTAL CITY LIABILITIES AND DEFERRED INFLOWS $708,802,439 $774,978,423
CITY NET FINANCIAL POSITION $357,652,567 $394,309,631
$453,500,452
$383,228,733
$374,289,304
$357,652,567
$394,309,631
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
FY2017 FY2018 FY2019 FY2020 FY2021
CITYWIDE NET POSITION - LAST 5 FISCAL YEARS
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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INVESTMENTS
As stated in its investment policy, the City strives to fully invest all eligible cash while providing sufficient
liquidity to meet the City’s reasonably anticipated cash flow requirements. The City’s investments
comply with California Government Code Section 53601 guidelines for permissible investment types
and limits. As of June 30, 2021, the total balance of investments held by the City or its Fiscal Agents
was $353,853,414. The chart below summarizes the types of investments utilized by the City.
The City’s investment portfolio is managed with the objective of obtaining a market-average rate of
return during budgetary and economic cycles, considering the City’s investment risk constraints and
the cash flow needs. Investment return is a consideration only after the core investment portfolio tenets
of safety and liquidity have been met. To measure investment returns, the City evaluates the Average
Yield to Maturity of the investment portfolio. The yield to maturity is the total return of investment
anticipated on a bond if the bond is held until it matures. This figure is expressed as an annual rate.
For the year ended June 30, 2021, the average yield to maturity of the City’s investment portfolio was
1.01%, reflecting the continued impact of the COVID-19 pandemic on investments.
Local Agency
Investment Fund,
139,105,442 , 39%
Money Market Mutual
Funds, 40,658,152 ,
11%
Federal Agency
Securities,
90,574,167 , 26%
Other Investment
Types, 16,804,537 ,
5%
US Treasury
Obligations,
31,075,373 , 9%
Medium Term
Corporate Notes,
35,635,743 , 10%
Investments by Type - June 30, 2021
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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CAPITAL ASSETS
Capital Assets, including the infrastructure of the City, are those assets that are used in the
performance of the City’s functions. The City’s capital assets include land and easements,
infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells,
and pumping equipment, distribution and collection systems, and construction in progress. The chart
below reflects the Capital Assets, net of the corresponding depreciation recognized to reflect the “wear
and tear” on the asset with use, for each category as of June 30, 2021.
During the fiscal year ended June 30, 2021, major capital improvements included upgrades to the City’s
fuel island and various park and community center upgrades.
Land and Easements,
127,347,818 , 21%
Other Capital Assets,
including Buildings,
Equipment, and
Vehicles, 55,623,485
, 9%
Construction in
Progress, 57,589,003
, 10%
Infrastructure,
141,483,892 , 24%
Water Rights, Wells,
and Pumping,
56,159,430 , 10%
Distribution and
Collection Systems,
113,548,029 , 19%
Building, Plant, and
Store Yards,
43,623,319 , 7%
Capital Assets, Net of Depreciation
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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LONG-TERM DEBT
Local governments issue debt (bonds) to pay for large, expensive, and long-lived capital projects,
including roads and water/sewer utilities. Without issuing debt, these important infrastructure needs
would be unmet. While local governments can sometimes pay for capital investments with current
revenues, borrowing allows them to spread the costs across multiple generations due to their long-
term benefit. As of June 30, 2021, the City had outstanding debt totaling $107.75 million. A graph of
the Citywide outstanding debt for the last five fiscal years is shown below. Please note that the totals
below do not include debt that is not a financial obligation of the City, such as the former Economic
Development Agency debt.
$124,924,292
$120,926,322
$116,436,886
$111,506,131
$107,746,271
$95,000,000
$100,000,000
$105,000,000
$110,000,000
$115,000,000
$120,000,000
$125,000,000
$130,000,000
FY2017 FY2018 FY2019 FY2020 FY2021
CITYWIDE DEBT OUTSTANDING
LAST FIVE FISCAL YEARS
•Used to finance
public
improvements such
as City Hall and
park improvements.
Lease Revenue
Bonds
$1.87 million
• Used to pay
some or all of the
pension plan's
unfunded
pension liability.
Pension
Obligation Bonds
$19.28 million
•Issued to acquire,
purchase, construct, or
improve major capital
facilities. The revenue
generated by the facility
or activity is pledged as
security for the repayment
of debt.
Water/Sewer
Revenue Bonds
$82.08 million
•Includes obligations
related to various
development
projects throughout
the City.
Other Long Term
Obligations
$4.52 million
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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NET PENSION LIABILITY
Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to
participate in multiple-employer defined benefits plans administered by California Public Employees
Retirement System (CalPERS). The City currently offers two plans: the Safety Plan for public safety
employees (i.e., Police employees) and the Miscellaneous Plan for all other City employees.
The largest impact on the City’s long-term financial stability relates to the increase in pension costs
from CalPERS. Between fiscal year 2022 and fiscal year 2026, the City’s combined unfunded actuarial
liability contribution is projected to increase 33% from $36.52 million to $48.42 million. Per the most
recent CalPERS annual valuation report, the funded status (the percentage of assets available to meet
the total projected benefit payments) for the Safety and Miscellaneous Plans was 63.7% and 69.1%,
respectively. The total net pension liability as of June 30, 2021 totaled $473.07 million. The net pension
liability for each plan as of the last two fiscal year end dates is shown below:
The City further allocates the total net pension liability by fund type (i.e., Business-Type funds related
to the activities of the Water and Sewer Funds and Governmental funds related primarily to the City’s
General Fund activities). The distribution of the net pension liability by fund type is shown below:
$275,241,375
$168,143,581
$295,009,758
$178,059,934
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
Safety Plan Miscellaneous Plan
Net Pension Liability - Safety vs Misc Plans
FY2020 FY2021
$60,531,689
$382,853,267
$64,101,577
$408,968,116
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
Business-Type Activities Governmental Activities
Net Pension Liability - Fund Types
FY2020 FY2021
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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STATEMENT OF ACTIVITIES
The Statement of Activities financial statement presents information about the City’s revenues and
expenses in a format that reflects the financial burden for each of the City’s functions. All changes are
reported as soon as the underlying event for the change occurs, regardless of the timing of the related
cash flow.
Activity is separated into two categories: (1) activities that are principally supported by taxes and
intergovernmental revenues (governmental activities) and (2) activities that are intended to recover
all or a significant portion of their costs through user fees and charges (business-type activities). The
Statement of Activities further organizes activity into the following functions:
Revenues on the Statement of Activities are reported as either Program Revenues or General
Revenues in the following categories:
Program Revenues
Charges for Services – Revenues that arise from charges to customers, applicants, or others
who purchase, use, or directly benefit from the goods, services, or privileges provided.
Grants and Contributions (Operating and Capital) – Revenues arising from mandatory and
non-exchange transactions with other governments, organizations, or individuals that are
restricted for use in a particular program.
General Government
• Expenditures are for offices related to the administration of the CIty, including the Mayor and City Council, City
Manager, City Attorney, City Clerk, Finance, and Human Resources
Public Safety
• Expenditures are for the costs associated with providing police services to residents and visitors
Public Works
• Expenditures for the design, construction, maintenance, and operation of public facilities and infrastructure within the
City
Culture and Recreation
• Expenditures to enrich the quality of life in the City through recreational and cultural activities
Community Development
• Expenditures related to the management of residential and commercial development in the City
Community Service
• Expenditures to support the educational and informational needs of the community
Interest on Long-Term Debt
• Expenditures for the interest expenses associated with debt financing
Business-Type Activities
• Activity related to the City's Water, Sewer, Sewer Collection, and Integrated Waste Funds
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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STATEMENT OF ACTIVITIES (CONT.)
General Revenues
Taxes – Categories for each major tax revenue source, including sales taxes, property taxes,
and the City’s 7.75% utility usage tax on telephone, electricity, gas, water, and cable.
Investment Earnings – Revenues arising from the City’s investment portfolio and rental
income.
Miscellaneous – All other miscellaneous minor revenue sources, such as donations, rebates,
and commissions.
For the fiscal year ended June 30, 2021, the City’s governmental and business activities resulted in
an increase of net position of $36.66 million, as shown below:
STATEMENT OF ACTIVITIES – CITYWIDE (ALL FUNDS)
Program Revenues 2020 2021
Charges for Services $100,971,934 $103,214,998
Operating Grants and Contributions 26,523,701 36,292,187
Capital Grants and Contributions 5,139,725 8,307,060
TOTAL PROGRAM REVENUES $132,635,360 $147,814,245
General Revenues 2020 2021
Property Taxes $18,814,022 $19,639,920
Sales Taxes 48,179,314 68,796,708
Franchise Taxes 12,864,556 13,470,312
Utilities User Taxes 22,680,847 23,609,073
Transient Occupancy Taxes 4,525,751 5,117,388
Other Taxes 7,662,745 9,359,962
Investment Earnings 6,804,185 1,517,291
Miscellaneous 6,225,062 17,619,868
TOTAL GENERAL REVENUES $127,756,482 $159,130,522
TOTAL PROGRAM AND GENERAL REVENUES $260,391,842 $306,944,767
Program Expenses 2020 2021
General Government $28,191,734 $25,164,625
Public Safety 106,626,978 95,644,882
Public Works 46,239,864 42,940,416
Culture and Recreation 5,792,349 5,045,667
Community Development 7,583,733 7,428,010
Community Service 4,098,616 9,912,798
Interest on Long-Term Debt 1,213,813 1,554,305
Water 40,581,468 44,406,988
Sewer 27,475,781 29,749,975
Sewer Collection 7,650,504 7,862,447
Integrated Waste 1,393,739 577,590
TOTAL PROGRAM EXPENSES $276,848,579 $270,287,703
INCREASE (DECREASE) IN NET POSITION ($16,456,737)$36,657,064
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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GOVERNMENTAL ACTIVITY HIGHLIGHTS
As described above, the City’s governmental activities include general government, public safety,
public works, culture and recreation, community development, and community service. These
activities are principally supported by general revenue including taxes and investment income. The
tables below summarize the five-year revenue and expense history for these activities:
Note: Other Revenues in FY2017 include certain one-time revenues associated with the City’s exit from bankruptcy.
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Sales Taxes Utilities User
Taxes
Property Taxes Charges for
Services
Grants &
Contributions
Other
Five-Year Revenue History - Governmental Activities
FY2017 FY2018 FY2019 FY2020 FY2021
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
General
Government
Public SafetyPublic Works Culture and
Recreation
Community
Development
Community
Service
Interest on
Long-Term
Debt
Five-Year Expense History - Governmental Activities
FY2017 FY2018 FY2019 FY2020 FY2021
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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GENERAL FUND HIGHLIGHTS
City Vision, Activities, and Spending
The City of San Bernardino strives to provide our citizens with the very best value for their dollars
while offering the level of services our Citizens deserve. The Finance department is committed to
exceeding these expectations while ensuring the long-term financial stability and sustainability of the
City government. The City’s vision for the future is summarized in the following statements:
We envision a world class city which capitalizes on its location, the diversity of its people
and its economy to create a broad range of choices for its residents in how they live, work,
and play.
We envision a thriving city possessing a sustainable system of high-quality education,
community health, public safety, housing, retail, recreation, arts and culture and
infrastructure.
We envision a vibrant economy with a skilled workforce that attracts employers who seek
the unique opportunities the city has to offer and provide jobs that create citywide prosperity.
We envision a model community which is governed in an open and ethical manner, where
all sectors work collaboratively to reach shared goals.
We envision a city that is recognized as the county’s business and government center
and a home for those seeking a sense of community and the best life has to offer.
General Fund Reserve Policy
On November 21, 2018, the Mayor and City Council adopted the City’s General Fund Reserve Policy,
which established a General Fund operating reserve equal to 25% of General Fund budget
appropriations. This reserve is further broken down as follows:
An Emergency Reserve of 15% — Established for the purpose of addressing any extremely
unusual and infrequent occurrences, such as a major natural disaster or a major unforeseen
legal settlement or judgment.
Utilization of the emergency reserve may only occur after the declaration of an emergency by
a majority of the city council. Following the resolution of the emergency, staff must present a
plan to the mayor and city council to return the emergency reserve to the 15% minimum level
as quickly as is practicable given the unique circumstances and requirements of each
emergency.
An Economic Contingency Reserve of 10% — Established for the purpose of providing a
mechanism to allow for a measured and thoughtful reduction in expenditures during times of
economic downturn.
Utilization of the economic contingency reserve requires approval by a majority of the city
council. When it is determined that the economic downturn has ended and the city’s financial
condition is improving, staff is required to present a plan to the mayor and city council to return
the economic contingency reserve to the 10% minimum level over a period of no more than
five years.
As of June 30, 2021, both reserves were fully funded, totaling $32.72 million. The General Fund
reserves are included in the Committed Fund Balance category defined below.
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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GENERAL FUND HIGHLIGHTS (CONT.)
Fund Balance
The General Fund is the chief operating fund of the City. The General Fund is used to account for all
financial resources of the City traditionally associated with government operations which are not required
legally or by sound financial management to be accounted for in another fund. Fund Balance represents
the excess of total assets compared to total liabilities in a governmental fund (including the General Fund)
as of a given date. The Fund Balance history for the General Fund is shown below:
Fund Balance can be further divided into five categories:
Nonspendable – Amounts that cannot be spent because they are either not in the spendable form
(i.e., inventory) or are legally and contractually required to be maintained intact (i.e., endowments).
Restricted – Amounts that can be spent only for specific purposes imposed by external creditors,
grantors, contributors, or laws or regulations of other governments or by law through constitutional
provisions or enabling legislature.
Committed – Amounts that can be used only for the specific purposes pursuant to constraints
imposed by formal action of the government’s highest authority (the Mayor and City Council).
Assigned – Amounts that are constrained by the government’s intent to be used for specific
purposes but are neither restricted nor committed.
Unassigned – All spendable amounts not included in the other classifications.
$71,752,835
$72,090,552
$64,540,412
$67,720,155
$110,742,632
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
FY2017 FY2018 FY2019 FY2020 FY2021
FUND BALANCE OF GENERAL FUND
LAST 5 FISCAL YEARS
Nonspendable,
$39,492,536 ,
36%
Restricted,
$2,261,884 , 2%
Assigned,
$2,215,990 , 2%
Committed,
$44,471,970 ,
40%
Unassigned,
$22,300,252 ,
20%
Fund Balance - General Fund
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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GENERAL FUND HIGHLIGHTS (CONT.)
General Fund Revenues
The three largest and most important revenue sources for the City are Sales, Utility, and Property
Taxes. These vital taxes represent a relatively stable source of revenue for the City, which enables
it to effectively manage and provide for critical public services. In the current year, Sales Tax revenue
totaled $68.80 million, representing a 43% increase from the prior year due largely to the passage
of Measure S as well as increased economic activity as consumer spending recovered from the
previous year. Measure S, which was approved by City voters in November 2020, is a one-cent
transaction and use tax, with revenues going directly to the City of San Bernardino. Collections for
the additional one-cent sales tax began on April 1, 2021. Utility User Taxes and Property Taxes
totaled $23.61 million and $19.64 million for the period, respectively, with modest 4% increases from
the prior year.
The rest of the City’s General Fund revenues come from a mixture of charges for services and other
taxes and revenues (including transfers in from other funds). Other taxes and fees include the
Transient Occupancy Tax, franchise fees, and business license gross receipts. Finally, General
Fund revenues also include monies collected from licenses and permits, fines and forfeitures, lease
revenue, investment income, and revenues from other governmental agencies in the form of grants.
A summary of the General Fund revenues by source is displayed below.
Taxes, 131,534,328 ,
74%
Other revenues,
including Transfers,
16,897,701 , 10%
Intergovernmental,
7,676,299 , 4%
Charges for services,
9,389,994 , 5%
Licenses and permits,
12,769,248 , 7%
General Fund Revenues by Source
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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GENERAL FUND HIGHLIGHTS (CONT.)
General Fund Expenditures
A total of 60% of the City’s expenditures ($80.68 million) went to public safety (police), which
represents a 1.0% increase from the previous year. Expenditures for other City services included
General Government expenditures of $22.77 million (4% decrease from FY19/20), Community
Development expenditures of $5.70 million (41% increase), Public Works expenditures at $15.67
million (5% increase), Debt Service expenditures for principal and interest payments on the City’s
outstanding debt of $2.63 million (5% decrease) and other expenditures at $7.79 million (28%
increase). Overall, total expenditures (including transfers) in the General Fund Total increased 3%
to $135.25 million for the fiscal year ended June 30, 2021. The increase is largely attributable to the
City beginning to restore service levels, increase staffing in key areas throughout the City, and
develop plans to address deferred maintenance throughout the City. A summary of the General
Fund expenditures by function is displayed below.
General government,
22,769,908 , 17%
Community
development,
5,704,495 , 4%
Public safety,
80,676,730 , 60%
Other, Including
Culture and
recreation,
Community Service,
and Transfers,
7,794,047 , 6%
Public works,
15,666,940 , 11%
Debt Service,
2,632,973 , 2%
General Fund Expenditures by Function
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
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BUSINESS-TYPE ACTIVITY HIGHLIGHTS
The Business-Type activities of the City include Water, Sewer, Sewer Collection, and Integrated
Waste Management. The majority of the activity occurs within the Water and two Sewer funds, which
account for the provision of water services, sewer treatment, and wastewater collections to the
residential, commercial, and industrial segments of the City. As of June 30, 2021, the City serviced
45,490 Water connections and 60,777 Sewer connections.
The chart below reflects the total Charges for Services revenues for each Business-Type activity
over the last five fiscal years:
To give an overview of the overall financial health of each fund, a five-year history of the fund
balances is presented below. The totals include nonspendable assets and funds that are restricted
for specific purposes.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
Water Sewer Sewer Collection Integrated Waste
Five-Year Revenue History - Business-Type Activities
FY2017 FY2018 FY2019 FY2020 FY2021
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
FY2017 FY2018 FY2019 FY2020 FY2021
Five-Year Net Position - Business-Type Activities
Water Sewer Sewer Collection Integrated Waste
CITY OF SAN BERNARDINO | POPULAR ANNUAL FINANCIAL REPORT
18
GLOSSARY
Capital Assets – Non-current Assets that are used in the operation of the City and have an initial
useful life greater than one year. Examples of capital assets are buildings, computer equipment,
machinery, vehicles, pumping equipment, and distribution and collection systems.
Current Assets – Liquid assets of the City such as cash or receivables; assets that can be liquidated
within a short period of time, usually one year.
Current Liabilities – City debt and obligations that are due within a year such as accounts payable,
payroll taxes, interest payable, and deposits.
Deferred Inflows/Deferred Outflows of Resources – Like revenues and expenses, deferrals
represent flows of resources into and out of a government during the fiscal year. However, unlike
revenues and expenses which are inflows and outflows of resources related to the period in which they
occur, deferrals are related to future periods.
Depreciation – A reduction in the value of an asset with the passage of time, due to wear and tear.
Fund Balance – The excess of total assets as compared to total liabilities in a governmental fund.
General Fund – The main operating fund of the City. The General Fund is used to account for all
financial resources of the City traditionally associated with government operations which are not
required legally or by sound financial management to be accounted for in another fund.
Long-Term Debt/Non-Current Liabilities – Debt and obligations that are due in more than one year,
such as bonds payable, claims payable, and the landfill post closure liability.
Median vs. Average – The median of a set of numbers is that number where half the numbers are
lower and half the numbers are higher. In the case of real estate, that means that the median is the
price where half the homes sold in any given area that month were less expensive, and half were more
expensive than the median. The average of a set of numbers is the total of those numbers divided by
the number of items in that set.
Net Pension Liability – Total pension liability less the fiduciary net position (cash and investments) of
the pension plan. Changes in net pension liability will be immediately recognized as pension expense
or reported as deferred outflows/inflows of resources depending on the nature of the change.
Net Position – The excess of total assets and deferred outflows compared to total liabilities and
deferred inflows.
Non-Current Assets – Assets that cannot be converted to cash or liquidated in a short period of time
such as capital assets, inventory, and property held for resale.
Yield to Maturity – The total return of investment anticipated on a bond if the bond is held until it
matures.
City of San Bernardino
290 North “D” Street
San Bernardino, CA 92401
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