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Ruth M. Low Andrew Chou Stan Liu Nancy A. Lyons Steve Tye Mayor Mayor Pro Tem Council Member Council Member Council Member City of Diamond Bar I 21810 Copley Drive Diamond Bar CA 91765-4178 www.DiamondBarCA.gov I (909) 839-7000 December 15, 2021 Honorable Mayor and Council Members City of Diamond Bar Diamond Bar, California It is an honor to submit to you the Annual Comprehensive Financial Report (ACFR) of the City of Diamond Bar for the fiscal year ended June 30, 2021. This report consists of management’s representations concerning the finances of the City. Consequently, responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City’s management. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformance with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide assurance that the financial statements will be free from misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. The City’s financial statements have been audited by Lance, Soll, & Lunghard, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2021, were fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement and should be read in conjunction with the MD&A. The City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF DIAMOND BAR The City of Diamond Bar was incorporated on April 18, 1989, and is located at the eastern edge of Los Angeles County in the East San Gabriel Valley. Diamond Bar is primarily a residential community of about 57,000, situated among the meandering hills and valleys of Brea Canyon. Many desired services can be found in Diamond Bar's shopping and business centers. Recreational opportunities within the City include more than 75 acres of developed park facilities, hiking trails, a community center, a County-owned and operated 18-hole public golf course and more than 370 acres of undeveloped publicly owned open space. Diamond Bar is also strategically located at the junction of the SR-57 and SR-60 freeways with easy access to I-10 and SR-71 freeways. This makes Diamond Bar a desirable and convenient location to live and work within close proximity to Los Angeles, Orange, Riverside and San Bernardino counties. Diamond Bar is a General Law city and operates under the council-manager form of government. Policy making and legislative authority are vested in a five- member City Council. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing Commissioners, and hiring both the City Manager and contracting for City Attorney services. The Council Members are elected on a non-partisan basis and serve four-year staggered terms, with elections held every other year. Each December, the City Council selects a Mayor and Mayor Pro-Team from its membership. The City Manager is responsible for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments. The City of Diamond Bar operates primarily as a “contract city” utilizing agreements with other governmental agencies, private sector firms and individuals to provide many of its essential services. This includes police services, animal services, building and safety services, engineering, road maintenance and landscape maintenance. ii The Los Angeles County Fire District provides fire protection, which is independent of the City. Los Angeles County also provides library services through a Library District, and sewer and sanitation services through a Sanitation District. Funds for these services are collected through property tax bills and are disbursed directly by the Los Angeles County Tax Collector's Office to those entities. Water services for the City are provided by the Walnut Valley Water District. Refuse collection is provided by private waste collection companies. Additionally, schools are provided by both the Walnut Valley Unified School District and the Pomona Unified School District. Accordingly, none of these activities are included in this report. ECONOMIC CONDITION AND OUTLOOK It goes without saying that throughout Fiscal Year 2020/21, the COVID-19 global pandemic continued to be a devastating worldwide health crisis impacting the United States, including California, LA County and Diamond Bar. Conditions continually improved following the significant surge in cases, hospitalizations and deaths that were tragically experienced between November 2020 and January 2021. While not totally eradicated, new cases, hospitalizations and related deaths remained relatively low as more persons were vaccinated, and allowed for easing of social distancing protocols which lead to a more robust recovery as the State, County and City embarked on the reopening journey. On May 21, 2021, Governor Newsom announced the end of the Blueprint for a Safer Economy Program that eliminated the need for social distancing or capacity limits on businesses and other activities, with a few exceptions, effective June 15, 2021. On March 11, 2021 the President signed the American Rescue Plan Act (ARPA) which is a $1.9 trillion relief package to mitigate the continuing effects of the COVID-19 pandemic. Of that amount, approximately $64 billion has been allocated to provide direct and flexible financial resources for every city and town in the nation. The City of Diamond Bar anticipates receiving just over $6.8 million in ARPA funds over the next two years, with the first half being received in June 2021. These funds may be used for a broad range of purposes including the replacement of lost revenue, restoration of City programs and services, COVID-19 expenses not otherwise reimbursed, and projects that help build resiliency and financial stability for the residents and businesses of the City. The City Council, as part of their continued prudent fiscal practices, has established a Contingency Reserve Fund to provide for times of economic uncertainties, local emergencies and other financial hardships or downturns in the local, state or national economy. The Contingency Reserve Fund represents 25% of the City’s operating budget which is currently estimated at approximately $6.8 million based on the FY 2020/21 adopted Budget. Often referred to as a iii “rainy day fund”, the current COVID-19 crisis is exactly what these resources are intended to help the City weather. There has never been another time where there has been such a sudden and extensive reduction in revenue, or impact on City operations, even of those experienced during the 2008 Great Recession. It was initially estimated that approximately $850,000 in Contingency Reserves would be required in FY 2020/21. As in the previous year, City Staff was able to make adjustments to City operations, offer on-line services and implement remote work opportunities to maintain essential City services. Many cost saving measures were immediately put in place due to the closure of City facilities, and cancellation of recreation programs, rentals and community events. The status of Capital Improvement Projects was also closely evaluated. As a result of these immediate and continued proactive actions, the use of Contingency Reserves was ultimately not needed to close the fiscal year as of June 30, 2021. The General Fund reserves actually increased by approximately $3.1 million during FY 2020/21 with the unassigned fund balance increasing to $20.9 million and total General Fund reserves coming in at $27.7 million. The primary reason for the increase in reserves is again due to the immediate and proactive cost saving actions taken in adjusting City operations in response to COVID-19 and better than expected performance in key revenues, including sales taxes and property taxes. The largest revenue source to the City, Property Tax revenue, was up 5%. The housing market was one sector that was not impacted by COVID-19. The number of detached resales during FY 2020/21 numbered 408 which was up 34.2% from the same time period the previous year. Compared to the previous fiscal year, the average resale detached home price at June 30, 2021 was $943,069 (up 13.6%) while the median price was $832,439 (up 14.5%). Assessed valuations citywide increased by 4% while the countywide assessed valuations increased by 6%. The City’s sales tax revenue also increased by 5% compared to last year. While FY 2020/21 started off slow, as restrictions eased there was a large surge in spending as people starting going out again in greater numbers than usual. This culminated in a very strong 2021 2nd quarter (April 2021 – June 2021), which made up for the slow start to the year. The rise in gas prices, and other consumer goods for that matter, also boosted sales tax revenues. In June 2021 the City issued the 2021 Lease Revenue Refunding Bonds to refinance the 2002 Lease Revenue Bonds. The 2002 bonds were originally issued to finance the construction of the Diamond Bar Center. The refunding, which capitalizes on historically low interest rates, will result in a savings of $1,736,355 iv (approximately $150,000 annually) over the remaining life of the bonds through June 1, 2033. Fiscal Year 2021/22 will continue to present many fiscal challenges driven by COVID-19. However, the FY 2021/2022 Budget provides a more positive outlook to restore many City programs and services, advance deferred maintenance and Capital Improvement Projects, and focuses on key initiatives consistent with the City’s Long-Term Financial Stability Report and Strategic Plan. Much of the optimism is centered on funding provided through ARPA, the reopening of the economy and the ability to restore the non-essential City services and programs. Given the fluid nature of the health crisis, the City will continue to monitor conditions closely and make adjustments consistent with the latest guidance and Public Health Order to protect our residents, businesses and City employees to the greatest extent possible while continuing to deliver City services and programs. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Diamond Bar for its annual comprehensive financial report for the fiscal year ended June 30, 2020. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, with contents that conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last twenty-six consecutive years (fiscal years ended 1995 through 2020). We believe our current report continues to meet the Certificate of Achievement Program’s requirements and we will be submitting it to GFOA to determine its eligibility for another certificate. REPORTING ENTITY AND ITS SERVICES This Annual Comprehensive Financial Report includes all funds of the City. The City directly provides a limited range of services and contracts for several other services. The City's significant reliance on contracted services has the benefit of reducing expenses to the citizens of the City of Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding to changing v economic conditions. Contracted services include police protection, building and safety, street maintenance, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include: community development (which includes planning, economic development, building and safety management, and neighborhood improvement), public works (which includes engineering, capital projects administration, street maintenance contract management, traffic and transportation matters, engineering contract management, park maintenance, landscape maintenance and solid waste contract management), parks & recreation (which includes senior services, recreation services, community events and community center operation), public information, subsidized transit ticket sales, grant administration, financial management and administrative management. All of these activities are included in this report. INTERNAL CONTROLS The City of Diamond Bar’s accounting system has been developed by giving consideration to the adequacy of internal accounting controls. Internal accounting controls are implemented by the City to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and that the City’s financial records used for preparing financial statements are maintained in a reliable fashion. The concept of reasonable assurance recognizes that the cost of these controls should not exceed the benefits derived from them. The City’s internal controls accomplish these objectives. ACKNOWLEDGEMENTS The preparation of this Annual Comprehensive Financial Report was made possible by the dedicated service and excellence found within the City's Finance Department staff, and through the cooperation of the entire City staff. Each City staff member has my sincere appreciation for their cooperation and contributions in the preparation of this Report. In addition, I would also like to thank our independent auditor, Lance, Soll, and Lunghard, LLP, who provided expertise and advice in the preparation of the City's Annual Comprehensive Financial Report. In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this Report would not have been possible. Sincerely, Daniel Fox City Manager vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Diamond Bar California For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2020 Executive Director/CEO vii DIAMOND BAR RESIDENTS CITY COUNCIL CITY MANAGER CITY CLERK PUBLIC INFORMATION HUMAN RESOURCES & RISK MANAGEMENT FINANCE INFORMATION SYSTEMS PARKS & RECREATION COMMUNITY DEVELOPMENT PUBLIC WORKS PUBLIC SAFETY CITY ATTORNEY CITY COMMISSIONS PLANNING PARKS & RECREATION TRAFFIC & TRANSPORTATION viii CITY OF DIAMOND BAR ELECTED AND ADMINISTRATIVE OFFICIALS FISCAL YEAR 20-21 Mayor Ruth M. Low Mayor Pro Tern Andrew Chou Councilmember Stan Liu Councilmember Nancy A. Lyons Councilmember Steve Tye City Manager Dan Fox Assistant City Manager Ryan McLean City Clerk Kristina Santana Director of: Parks & Recreation Ryan Wright Community Development Greg Gubman Finance Jason Jacobsen Information Systems Ken Desforges Public Works David Liu ix 7+,63$*(,17(17,21$//</()7%/$1. 203 N. 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financial activities of the City for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlights xThe total revenues and other financing sources from all sources totaled $34,048,571. xThe total cost of all City programs totaled $34,162,543. xThe assets and deferred outflows of the City of Diamond Bar exceeded its liabilities and deferred inflows at the close of the fiscal year by $382,297,929 (net position). Of this amount, $23,604,159 represents unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors. xAs of the close of the current fiscal year, the City of Diamond Bar’s governmental funds reported combined ending fund balances of $46,571,567, an increase of $6,978,163 in comparison with the prior year. Approximately $20.8 million of the $46.6 million is available for spending at the City’s discretion. xAt the end of the current fiscal year, the Unassigned Fund Balance of the General Fund was $20,950,249, which represents an increase from the prior year of $2,260,267. The $20,950,249 is an addition to a $6,797,181 reserve for contingencies as established by Council resolution. xThe City received $3.4 million is American Rescue Plan Act funds in fiscal year 2021. This is the first of two equal advances the City will receive, with the second installment to be received in June 2022. The first installment is presented as “Unearned Revenue” in the accompanying financial statements and, as such, but represents monies that the City will have available to address the fiscal impacts created by the pandemic as well as to fund future projects that have a nexus to COVID-19 and other pandemic impacts. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Diamond Bar’s basic financial statements. The City of Diamond Bar’s basic financial statements comprise three components: 1) government-wide financial 5 statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements – The Government–wide Financial Statements are designed to provide readers with a broad overview of the City of Diamond Bar’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents financial information on all of the City of Diamond Bar’s assets, liabilities and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Diamond Bar is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Diamond Bar that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Diamond Bar include general government, public safety, highways and streets, community development, and parks and recreation. The City of Diamond Bar currently has no business-type activities or enterprise funds. The government-wide financial statements include not only the City of Diamond Bar itself, but also a legally separate financing authority. Although legally separate, the Diamond Bar Public Financing Authority is included because the City is financially accountable for it. Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Diamond Bar, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide 6 financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources available at the end of the fiscal year. Such information may be useful in assessing the near-term financing requirements necessary to finance City programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Diamond Bar adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. Proprietary Funds – The type of proprietary funds that the City maintains are internal service funds that are used to allocate costs internally among the various functions of the City. The City of Diamond Bar uses these funds to account for its liability insurance costs and vehicle, building and computer maintenance and replacement costs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities within the government-wide financial statements. Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information – In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budgetary control and accounting and expenditures in excess of appropriations. Government-wide Financial Analysis The most prominent theme in the financial analysis below is the impact of COVID-19 both at a national level and local level. Both the State Governor and Los Angeles County Public Health officials issued stay-at-home orders in mid-March 2020 requiring many businesses that were not deemed essential to close down. This had a significant impact on the local economy and City 7 revenues beginning in the last quarter of fiscal year 2020. With such uncertainty over how long the pandemic would last and to what extent it would continue to affect revenues, the City’s fiscal year 2021 adopted budget reflected conservative revenue estimates, reduced expenditures, and the prudent use of contingency reserves. On the revenue side, the pandemic impacted sales tax and, in particular, transient occupancy tax (TOT) revenue. As further discussed below, sales tax revenues eventually recovered as restrictions on businesses were eased during the spring of 2021 and eventually eliminated in June 2021. In fact, sales taxes grew by 5% over last year. Similarly, property taxes grew by 5% from last year as well, seemingly not impacted at all by the pandemic. TOT revenues did not fare as well, with fiscal year 2021 revenues ending the year over $300,000 below the prior year. Other revenues were largely unaffected with the exception of revenues tied to facility use and other parks and recreation programs that were discontinued for the better part of the year. On the expenditure side, the City scaled back its capital improvement program as one measure to offset projected revenue declines. In addition, certain costs naturally declined as a result of the pandemic and state and county restrictions. For example, with the significantly curtailed uses of recreational facilities, such as the Diamond Bar Center, the costs to maintain the facility, and utility costs, were correspondingly reduced. Similarly, with many employees working remotely for part of the year, maintenance and utility costs, such as electricity and water, were reduced. Overall, due to stronger than expected revenue growth in key areas, along with reduced spending, the City ended the year in a much better position than last year and much better than budgetary expectations, as discussed in more detail below. City-wide Statement of Net Position – The Statement of Net Position is intended to measure an agency’s financial health at the end of the fiscal year. The “net position” is the net of the agency’s total assets and its total liabilities. At June 30, 2021, the City of Diamond Bar’s net position (total assets and deferred outflows over total liabilities and deferred inflows) was $382.3 million (see Table 1). By far the largest portion of the City’s net position (89%) is its investment in capital assets (e.g., land, buildings, infrastructure, machinery, equipment, and construction in progress), net the related outstanding debt used to acquire those assets. The City of Diamond Bar uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided 8 from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. As shown in Table 1 below, the City’s investment in capital assets (net of related debt) decreased by approximately $5.5 million, which was largely the result of $8 million in depreciation expense offset by additional investments of $1.9 million and the reduction of debt used to finance the capital assets. Table 1 CITY OF DIAMOND BAR Statement of Net Position The City’s Restricted net position increased by $3.7 million. This is primarily due to the deferral and change in the construction schedule of capital improvement projects, which are largely funded from restricted revenues, in response to the pandemic. Specifically, a total of $3.1 million in Proposition C, Measure M, RMRA (SB1), MTA Grant, Measure W, and Measure R revenues were unspent in fiscal year 2021, which are restricted primarily for streets and transportation costs. These unspent revenues contributed to the overall $3.7 million increase in the City’s restricted net position. These funds will be used in upcoming fiscal years. ϮϬϮϭ ϮϬϮϬ ƵƌƌĞŶƚĂŶĚŽƚŚĞƌĂƐƐĞƚƐ ϱϴ͕ϬϯϮ͕ϬϳϵΨϰϴ͕ϲϰϬ͕ϯϯϰΨ ĂƉŝƚĂůĂƐƐĞƚƐ ϯϰϳ͕ϳϱϭ͕Ϯϳϴϯϱϯ͕ϳϬϲ͕ϭϯϭ dŽƚĂůƐƐĞƚƐ ϰϬϱ͕ϳϴϯ͕ϯϱϳϰϬϮ͕ϯϰϲ͕ϰϲϱ ĞĨĞƌƌĞĚKƵƚĨůŽǁƐ ϭ͕ϵϱϰ͕ϱϰϰϮ͕ϭϬϬ͕ϲϲϳ >ŽŶŐͲƚĞƌŵĚĞďƚŽƵƚƐƚĂŶĚŝŶŐ ϭϱ͕Ϯϱϲ͕ϭϴϬϭϱ͕ϳϲϱ͕ϵϳϱ KƚŚĞƌůŝĂďŝůŝƚŝĞƐ ϵ͕ϴϱϮ͕ϴϳϮϲ͕Ϭϳϯ͕ϲϱϲ dŽƚĂů>ŝĂďŝůŝƚŝĞƐ Ϯϱ͕ϭϬϵ͕ϬϱϮϮϭ͕ϴϯϵ͕ϲϯϭ ĞĨĞƌƌĞĚ/ŶĨůŽǁƐ ϯϯϬ͕ϵϮϬϱϴϭ͕ϲϲϭ EĞƚƉŽƐŝƚŝŽŶ͗ EĞƚŝŶǀĞƐƚŵĞŶƚŝŶĐĂƉŝƚĂůĂƐƐĞƚƐ ϯϯϵ͕ϳϮϳ͕ϭϴϲϯϰϱ͕ϮϲϬ͕Ϯϴϲ ZĞƐƚƌŝĐƚĞĚ ϭϴ͕ϵϲϲ͕ϱϴϰϭϱ͕Ϯϱϭ͕ϴϲϲ hŶƌĞƐƚƌŝĐƚĞĚ Ϯϯ͕ϲϬϰ͕ϭϱϵϮϭ͕ϱϭϯ͕ϲϴϴ dŽƚĂůEĞƚWŽƐŝƚŝŽŶ ϯϴϮ͕Ϯϵϳ͕ϵϮϵΨϯϴϮ͕ϬϮϱ͕ϴϰϬΨ 'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ 9 The unrestricted portion of the total net position represents those funds the City can use at its sole discretion. This portion is often looked at when evaluating a city’s financial health. More importantly, the unrestricted net position increased from the prior year by approximately $1.8 million. There are many factors that played into this improvement in the City’s financial position, but this is primarily due to reduced spending, which in many cases was due to the pandemic, such as with utility and maintenance costs associated with buildings; reduced sheriff costs due to a lack of special events; and lower personnel costs. In other cases, it was a result of an across-the-board focus on keeping costs down due to the anticipated impacts of the pandemic on revenues. Changes in Net Position – Although the Statement of Net Position discussed above is an important measure of financial health, it is only at a specific point in time. A more useful measure is how the City’s financial position is changing over time. Table 2 below present a summary of the City’s change in net position from the prior year, and the specific revenue and expenditure performance that caused the change. Overall, the City ended the year in a much better position than originally expected. Although on a citywide basis the year ended with a slight deficit of $113,972, this is entirely due to depreciation expense that is recognized in the government wide statements. In addition, this is a marked improvement to the prior year deficit of $3.3 million. At the fund level, as further discussed below, the City ended the year with a $7 million surplus, with the General Fund contributing $3.1 million to these very positive results. Again, this is a marked difference from the expectations before the fiscal year began. Specifically, the City’s adopted fiscal year 2021 General Fund budget anticipated a $1,225,037 deficit, including the use of $850,000 in emergency contingency reserves, $432,731 in General Fund reserves to subsidize the Landscape Assessment Districts and $100,000 in the Building Facilities Fund for the Heritage Park roof replacement project. However, with better than anticipated revenues and a significant reduction in spending, the City ended the year in a much better financial position than originally expected. 10 Table 2 CITY OF DIAMOND BAR Changes in Net Position Many of the reasons leading to these results have already been discussed, but some of the more notable factors are discussed below. Revenues In the Statement of Activities, the City’s total revenues were approximately $34 million, which almost exactly matches the $34.02 million received in last fiscal year. However, certain revenues were higher than last year, while other revenues ϮϬϮϭ ϮϬϮϬ ZĞǀĞŶƵĞƐ͗ WƌŽŐƌĂŵZĞǀĞŶƵĞƐ͗ ŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐ ϲ͕ϯϲϴ͕ϬϴϭΨϱ͕ϵϯϵ͕ϰϴϭΨ KƉĞĂƌƚŝŶŐŐƌĂŶƚƐĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐ ϱ͕ϵϭϵ͕ϯϵϵϰ͕ϵϯϴ͕ϴϵϯ ĂƉŝƚĂůŐƌĂŶƚƐĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐ ϯϬϮ͕ϲϭϲϭ͕Ϭϵϴ͕ϴϳϵ 'ĞŶĞƌĂůZĞǀĞŶƵĞƐ͗ WƌŽƉĞƌƚǇdĂǆĞƐ ϱ͕ϴϳϯ͕ϯϮϴϱ͕ϱϵϬ͕ϴϵϵ dƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐǇƚĂǆĞƐ ϳϵϳ͕ϳϴϱϭ͕ϭϮϴ͕ϯϴϲ ^ĂůĞƐdĂǆĞƐ ϱ͕ϭϬϲ͕ϵϮϬϰ͕ϴϰϲ͕ϯϯϬ &ƌĂŶĐŚŝƐĞ&ĞĞƐ ϭ͕ϯϵϬ͕ϮϱϬϭ͕ϯϰϬ͕ϵϲϬ KƚŚĞƌƚĂǆĞƐ ϭ͕ϭϬϱ͕ϲϱϭϭ͕ϬϳϬ͕ϲϳϮ DŽƚŽƌǀĞŚŝĐůĞŝŶůŝĞƵ ϲ͕ϴϬϰ͕Ϭϭϵϲ͕ϱϰϱ͕ϵϴϵ hƐĞŽĨŵŽŶĞǇΘƉƌŽƉĞƌƚǇ ϭϮϭ͕ϲϭϮϭ͕ϯϳϴ͕ϮϮϳ KƚŚĞƌϮϱϴ͕ϵϭϬϭϯϵ͕ϯϮϭ dŽƚĂůƌĞǀĞŶƵĞƐ ϯϰ͕Ϭϰϴ͕ϱϳϭϯϰ͕Ϭϭϴ͕Ϭϯϳ ǆƉĞŶƐĞƐ 'ĞŶĞƌĂůŐŽǀĞƌŶŵĞŶƚ ϳ͕ϴϭϬ͕ϰϯϰϲ͕ϲϵϯ͕ϭϵϮ WƵďůŝĐƐĂĨĞƚǇ ϳ͕ϰϬϭ͕ϵϮϰϳ͕ϯϳϭ͕ϮϵϬ ŽŵŵƵŶŝƚǇĚĞǀĞůŽƉŵĞŶƚ ϯ͕ϭϮϴ͕ϴϭϯϯ͕ϭϯϴ͕ϱϬϲ WĂƌŬƐΘZĞĐƌĞĂƚŝŽŶ ϯ͕ϴϬϮ͕ϬϮϱϱ͕ϭϴϴ͕ϳϵϴ WƵďůŝĐtŽƌŬƐ ϭϭ͕ϲϮϲ͕ϲϵϱϭϰ͕ϰϯϱ͕ϲϬϲ ŽŶƚƌŝďƵƚŝŽŶƚŽKWͲϴϴ͕ϬϬϬ /ŶƚĞƌĞƐƚĂŶĚĨŝƐĐĂůĐŚĂƌŐĞƐ ϯϵϮ͕ϲϱϮϯϴϱ͕ϬϬϲ dŽƚĂůĞǆƉĞŶƐĞƐ ϯϰ͕ϭϲϮ͕ϱϰϯϯϳ͕ϯϬϬ͕ϯϵϴ /ŶĐƌĞĂƐĞ;ĞĐƌĞĂƐĞͿŝŶŶĞƚƉŽƐŝƚŝŽŶ ;ϭϭϯ͕ϵϳϮͿ;ϯ͕ϮϴϮ͕ϯϲϭͿ EĞƚƉŽƐŝƚŝŽŶͲďĞŐŝŶŶŝŶŐ ϯϴϮ͕ϬϮϱ͕ϴϰϬϯϴϰ͕ϵϬϮ͕ϭϱϱ ZĞƐƚĂƚĞŵĞŶƚŽĨŶĞƚƉŽƐŝƚŝŽŶ ϯϴϲ͕ϬϲϭϰϬϲ͕Ϭϰϲ EĞƚƉŽƐŝƚŝŽŶͲĞŶĚŝŶŐ ϯϴϮ͕Ϯϵϳ͕ϵϮϵΨϯϴϮ͕ϬϮϱ͕ϴϰϬΨ 'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ 11 were down. The two key areas of growth were in property tax and sales tax revenues. Although the increase in property taxes was generally anticipated, the growth in sales taxes was not. Both grew approximately 5%. Sales taxes are discussed in more detail below. One of the declines was in capital grants revenues of almost $800,000. This is not indicative of a negative trend but rather the timing of when grant funded projects are initiated. Another decline was seen in TOT revenues, which end the year $330,601 lower than last year due to the impacts of the pandemic and the related state- and county-wide restrictions on businesses. Lastly, again due to the pandemic, rental income from the use of City recreational facilities, such as the Diamond Bar Center, for such things as weddings and other special events declined by approximately $1.2 million. Expenses The City has continued to be very diligent in controlling growth in expenses. This year expenses for the City totaled $34.2 million, which is approximately $3.1 million, or 8%, lower than the previous fiscal year. The largest declines in spending were in the Parks & Recreation and Public Works Departments, primarily driven by the impacts of the pandemic. In Parks & Recreation, because many of the programs were not provided due to state and county restrictions, the related costs were not incurred, such as seasonal salaries and supplies associated with providing those service. In addition, due to the lack of facility rental activity, related costs to maintain those facilities, including utility costs, were substantially reduced. In the Public Works Department, there was a general reduction in professional service contracts, many of which are tied to streets and other capital improvement projects that were deferred as one of several measures implemented to offset anticipated revenue declines due to the pandemic. Fund Financial Analysis As noted earlier the City of Diamond Bar uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These are presented starting on page 21 of the financial statements. Governmental funds - The focus of the City of Diamond Bar’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a city’s net resources available for spending at the end of the fiscal year. 12 At June 30, 2021, the City of Diamond Bar’s governmental funds reported combined ending fund balances of $46.6 million, an increase of $7 million in comparison with the prior year. Approximately 45% of this amount ($20.8 million) constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either non- spendable, restricted or assigned to indicate that it is 1) not in spendable form ($2,275), 2) restricted for particular purposes ($18,966,584) or 3) committed for particular purposes ($6,797,181). The General Fund is the main operating fund of the City. It is where most traditional services associated with local government are provided and which are funded primarily from unrestricted tax revenues. At the end of the current fiscal year, the unassigned fund balance of the General Fund was approximately $20.9 million, while the total fund balance was $27.7 million. This represents an increase of $3.1 million from last year, which is a very favorable result of the year, particularly given original expectations as previously noted. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 105% of total General Fund expenditures, including transfers out, while total fund balance represents 133% of the same amount. Since the City’s incorporation in 1989, the City has been fiscally conservative contributing to healthy fund balance reserves. Several years ago, the City chose to fund major maintenance projects from General Fund unassigned fund balance (reserves) when other funds were not available for this purpose. The factors leading to this increase are largely the same as those discussed above for the City as a whole, including, strong performance in sales tax and property tax revenues, and reduced spending, particularly in the Public Works and Parks and Recreation Departments. General Fund Budgetary Highlights While in total the General Fund revenue budget changed very little, there were notable changes to several individual revenues during the fiscal year to adjust to new or changing circumstances and activity. Some of the more notable changes include the following: -Proposition A Exchange – In January of 2021 the City of Diamond Bar entered into an agreement with Foothill Transit whereby the City would provide $800,000 in Proposition A restricted revenues to Foothill Transit in exchange for $600,000 in unrestricted revenues. Since Proposition A revenues are restricted to transit-related expenses, and the City does not operate its own transit service, exchanging these funds for unrestricted revenues was a great way to 13 bring in additional funds to the General Fund to fund other important services to the community. With this agreement, the City established a budget in the amount of $600,000 in anticipation of these revenues. -Diamond Bar Center Revenues – The City normally expects to receive approximately $500,000 in rental revenues at the Diamond Bar Center for a variety of events, such as weddings and other celebrations. As a result of the pandemic caused by COVID-19, the City had to close the facility for such events starting in early 2020. As a result, fiscal year 2020 revenues were only $255,931 for the first 8 months of the year prior to closure. For fiscal year 2021, the original budget was reduced from $500,000 to $0. Only $35,621 in revenues were realized. -Transient Occupancy Taxes (TOT) – The original budgeted revenues for TOT were $1.1 million, but was lowered to $750,000 in light of the impact on TOT revenues of COVID-19. In comparison, the original budget in the prior fiscal year (2020) was lowered from 1,400,000 to $1,250,000 as the effects on the economy and local revenues were first being seen. However, the biggest impacts thus far have been in fiscal year 2021 with revenues dropping from $1,128,386 last year to $797,785 this fiscal year. -Sales Taxes – The original budget of $4.3 million was increased by $500,000 to $4.8 million. The original budget was developed shortly after the pandemic began when there was still a great deal of uncertainty as to how long the pandemic would last and to what extent it would affect revenues, particularly sales taxes, in fiscal year 2021. With the restrictions placed state-wide on businesses beginning in spring of 2020, sales taxes in the last three months of fiscal year 2020 were greatly impacted. Consequently, revenues were budgeted conservatively for fiscal year 2021. Although restrictions continued for the better part of the year, some businesses continued to do well, particularly restaurants offering take-out service and those working with food delivery services, reducing the impacts on sales tax revenues. Eventually, restrictions on businesses statewide were eased throughout the spring of 2021 and were essentially eliminated in June. In addition, vaccines became widely available in April 2021, both of which allowed the pent-up demand for consuming and spending to be met. This is evidenced by a statewide increase in sales tax revenues of 37% in the last three month of fiscal year 2021 (April-June) compared to the same three months last year, In the City of Diamond Bar, sales tax revenues increased by 33.2%. Note that some of this increase is attributable to the increasing prices of taxable goods, in particular fuel, as measured by the Consumer Price Index. By the end of the fiscal year, sales tax revenues exceeded budget by approximately $300,000 for a total of $5.1 million. 14 Capital Asset and Debt Administration Capital assets - The City of Diamond Bar’s investment in capital assets for its governmental activities as of June 30, 2021 amounts to $347,751,278 (net of accumulated depreciation). This investment in capital assets includes land, Right of Way, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and construction in progress. Table 3 The City’s capital assets decreased in value by approximately $6 million during fiscal year 2021. This decrease was due primarily to depreciation expense totaling almost $8 million, offset by an increase in construction in progress and other capital assets of approximately $1.5 million. Construction in progress at the end of the year included projects in various stages of design or construction. Nearly $1 million of construction in progress relates to streets improvement projects, including both residential and arterial roadways. An additional $696,000 was invested in a new, citywide, financial management systems, which provides much greater functionality, efficiencies and opportunities for enhancing services to the public. See footnote 4 for more information on capital assets. Long-term debt – At the end of the current fiscal year, the City of Diamond Bar’s total long-term debt totaled $7,624,472, which includes outstanding bonds payable and accrued compensated absences as shown in the table below. ŝƚǇŽĨŝĂŵŽŶĚĂƌ ĂƉŝƚĂůƐƐĞƚƐ;ŶĞƚŽĨĚĞƉƌĞĐŝĂƚŝŽŶͿ &ŝƐĐĂůzĞĂƌ &ŝƐĐĂůzĞĂƌ ϮϬϮϭ ϮϬϮϬ >ĂŶĚϲ͕ϯϲϵ͕ϱϬϲΨϲ͕ϯϲϵ͕ϱϬϲΨ ZŝŐŚƚŽĨtĂǇ Ϯϲϱ͕ϲϭϰ͕ϭϬϰϮϲϱ͕ϲϭϰ͕ϭϬϰ ƵŝůĚŝŶŐƐĂŶĚ/ŵƉƌŽǀĞŵĞŶƚƐ ϭϭ͕ϱϵϰ͕Ϭϲϳϭϰ͕ϭϯϴ͕ϵϮϮ &ƵƌŶŝƚƵƌĞĂŶĚ&ŝǆƚƵƌĞƐ ϭϰ͕ϱϱϲϯϮ͕ϮϯϬ sĞŚŝĐůĞƐΘƋƵŝƉŵĞŶƚ ϵϯϰ͕Ϭϵϭϭ͕Ϭϭϭ͕ϱϬϰ /ŶĨƌĂƐƚƌƵĐƚƵƌĞ ϲϬ͕ϴϮϬ͕ϮϰϬϲϯ͕ϬϬϳ͕ϲϮϮ ŽŶƐƚƵĐƚŝŽŶŝŶWƌŽŐƌĞƐƐ Ϯ͕ϰϬϰ͕ϳϭϰϯ͕ϱϯϮ͕Ϯϰϯ dŽƚĂůƐ ϯϰϳ͕ϳϱϭ͕ϮϳϴΨϯϱϯ͕ϳϬϲ͕ϭϯϭΨ 15 Table 4 In June 2021 the City issued the 2021 Lease Revenue Refunding Bonds to refinance the 2002 Lease Revenue Bonds. The 2002 bonds were originally issued to finance the construction of a community/senior center (the Diamond Bar Center) and other public improvements. The refunding, which capitalizes on historically low interest rates, will result in a savings of $1,736,355 over the remaining life of the bonds. In addition to the bonds, city employees have accrued leave time (sick and vacation) totaling $889,472 as of June 30, 2021. This liability is primarily paid out as time off or the use of sick time and to this extent does not result in an increase in costs. See footnote 5 for more information on long-term debt. Economic Factors and Next Year’s Budgets and Rates Fiscal Year 2021/22 will continue to present many fiscal challenges driven by COVID-19. However, the FY 2021/2022 Budget provides a more positive outlook to restore many City programs and services, advance deferred maintenance and Capital Improvement Projects, and focuses on key initiatives consistent with the City’s Long-Term Financial Stability Report and Strategic Plan. Much of the optimism is centered on funding provided through ARPA, the reopening of the economy and the ability to restore the non-essential City services and programs. Given the fluid nature of the health crisis, the City will continue to monitor conditions closely and make adjustments consistent with the latest guidance and Public Health Order to protect our residents, businesses and City employees to the greatest extent possible while continuing to deliver City services and programs. KƵƚƐƚĂŶĚŝŶŐ>ŽŶŐͲdĞƌŵĞďƚ &ŝǆĞĚZĂƚĞϮϬϮϭ>ĞĂƐĞZĞǀĞŶƵĞZĞĨƵŶĚŝŶŐŽŶĚƐ ;ďĂĐŬĞĚďǇƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚǇ ϲ͕ϳϯϱ͕ϬϬϬΨ ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐ ϴϴϵ͕ϰϳϮ dŽƚĂů ϳ͕ϲϮϰ͕ϰϳϮΨ ƚ:ƵŶĞϯϬ͕ϮϬϮϭ 16 Contacting the City’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City of Diamond Bar’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department, at the City of Diamond Bar, 21810 Copley Drive, Diamond Bar, California 91765. 17 THIS PAGE INTENTIONALLY LEFT BLANK 18 CITY OF DIAMOND BAR STATEMENT OF NET POSITION Governmental Activities Assets: Cash and investments 55,210,138$ Receivables: Accounts 2,037,869 Notes and loans 400,791 Accrued interest 78,491 Prepaid costs 2,275 Due from other governments 277,198 Restricted assets: Cash with fiscal agent 22,777 Due from employees 2,540 Capital assets not being depreciated 274,388,324 Capital assets, net of depreciation 73,362,954 Total Assets 405,783,357 Deferred Outflows of Resources: Deferred pension related items 1,772,162 Deferred OPEB related items 182,382 Total Deferred Outflows of Resources 1,954,544 Liabilities: Accounts payable 2,734,040 Accrued liabilities 49,042 Unearned revenue 3,651,318 Deposits payable 2,160,498 Due to other governments 402,974 Noncurrent liabilities: Compensated absences - due within one year 400,000 Bonds payable - due within one year 455,000 Compensated absences - due in more than one year 489,472 Bonds payable - due in more than one year 7,569,092 Net pension liability - due in more than one year 6,563,014 Net OPEB liability - due in more than one year 634,602 Total Liabilities 25,109,052 Deferred Inflows of Resources: Deferred pension related items 251,746 Deferred OPEB related items 79,174 Total Deferred Inflows of Resources 330,920 Net Position: Net investment in capital assets 339,727,186 Restricted for: Community development projects 3,100,228 Public safety 346,594 Public works 13,772,296 Capital projects 1,724,690 Debt service 22,776 Unrestricted 23,604,159 Total Net Position 382,297,929$ JUNE 30, 2021 See Notes to Financial Statements.19 CITY OF DIAMOND BAR STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021 Operating Capital Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Functions/Programs Primary Government: Governmental Activities: General government 7,810,434$ 642,791$ 1,044,350$ -$ (6,123,293)$ Public safety 7,401,924 263,147 104,715 - (7,034,062) Community development 3,128,813 2,260,454 434,415 -(433,944) Parks and recreation 3,802,025 319,896 -- (3,482,129) Public works 11,626,695 2,881,793 4,335,919 302,616 (4,106,367) Interest on long-term debt 392,652 ---(392,652) Total Primary Government 34,162,543$ 6,368,081$ 5,919,399$ 302,616$ (21,572,447) General Revenues: Taxes: Property taxes, levied for general purpose 5,873,328 Transient occupancy taxes 797,785 Sales taxes 5,106,920 Franchise taxes 1,390,250 Other taxes 1,105,651 Motor vehicle in lieu - unrestricted 6,804,019 Use of money and property 121,612 Other 258,910 Total General Revenues 21,458,475 Change in Net Position (113,972) Net Position at Beginning of Year 382,025,840 Restatement of Net Position 386,061 Net Position at End of Year 382,297,929$ Program Revenues Net (Expenses) Revenue and Changes in Net Position See Notes to Financial Statements.20 CITY OF DIAMOND BAR BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2021 Special Revenue Funds Capital Projects Funds Other Total Governmental Governmental General Funds Funds Assets: Pooled cash and investments 33,063,087$ 7,229,529$ 949,936$ 11,574,920$ 52,817,472$ Receivables: Accounts 1,741,666 --296,203 2,037,869 Notes and loans ---400,791 400,791 Accrued interest 78,491 ---78,491 Prepaid costs 2,275 ---2,275 Due from other governments 11,379 --265,106 276,485 Due from other funds 69,055 ---69,055 Due from employees 2,540 ---2,540 Restricted assets: Cash and investments with fiscal agents ---22,777 22,777 Total Assets 34,968,493$ 7,229,529$ 949,936$ 12,559,797$ 55,707,755$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 1,352,227$ -$ 988,261$ 341,670$ 2,682,158$ Accrued liabilities 45,365 --3,677 49,042 Unearned revenues 3,649,758 -1,560 - 3,651,318 Deposits payable 2,160,498 --- 2,160,498 Due to other governments ---402,974 402,974 Due to other funds ---69,055 69,055 Total Liabilities 7,207,848 - 989,821 817,376 9,015,045 Deferred Inflows of Resources: Unavailable revenues 10,940 --110,203 121,143 Total Deferred Inflows of Resources 10,940 - -110,203 121,143 Fund Balances: Nonspendable: Prepaid costs 2,275 ---2,275 Restricted for: Community development projects - - - 3,100,228 3,100,228 Public safety ---346,594 346,594 Highways and streets - 7,229,529 - 6,542,767 13,772,296 Capital Projects --- 1,724,690 1,724,690 Debt service ---22,776 22,776 Committed to: Emergency contingencies 6,797,181 - - - 6,797,181 Unassigned 20,950,249 - (39,885) (104,837) 20,805,527 Total Fund Balances 27,749,705 7,229,529 (39,885) 11,632,218 46,571,567 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 34,968,493$ 7,229,529$ 949,936$ 12,559,797$ 55,707,755$ Traffic Improvement Fund Capital Improvement Fund See Notes to Financial Statements.21 CITY OF DIAMOND BAR RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2021 Fund balances of governmental funds 46,571,567$ 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.347,283,197 Deferred outflows related to pension items: Adjustments due to difference in proportions 299,141$ Net difference between project and actual earnings on pension plan investments 194,965 Difference between expected and actual experiences 338,212 939,844 1,772,162 Deferred outflows related to OPEB: Change in assumptions 176,519 Difference between expected and actual experiences 5,863 182,382 Long-term debt, compensated absences, other post employee benefit obligation and net pension liability that have not been included in the governmental fund activity: Bonds payable (6,735,000) Unamortized bond premiums (1,289,092) Compensated Absences (889,472) Net OPEB liability (634,602) Net pension liability (6,563,014) (16,111,180) Deferred inflows related to pension items: Change in assumptions (46,810) (204,936)(251,746) Deferred inflows related to OPEB: Difference between expected and actual experience (49,592) Net differences between projected and actual return investments (29,582)(79,174) 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.121,143 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position.2,809,578 Net Position of Governmental Activities 382,297,929$ Current year contributions that occurred after the measurement date Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions See Notes to Financial Statements.22 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Capital Projects Funds Other Total Governmental Governmental General Funds Funds Revenues: Taxes 13,498,926$ -$ -$ 775,008$ 14,273,934$ Licenses and permits 2,113,823 --145,464 2,259,287 Intergovernmental 8,448,369 -38,363 7,786,806 16,273,538 Charges for services 321,427 --593,339 914,766 Use of money and property (97,951) 83,977 1,449 109,020 96,495 Fines and forfeitures 263,147 ---263,147 Miscellaneous 155,338 --107,591 262,929 Total Revenues 24,703,079 83,977 39,812 9,517,228 34,344,096 Expenditures: Current: General government 5,580,027 --803,429 6,383,456 Public safety 7,366,971 --34,953 7,401,924 Community development 2,150,405 --768,640 2,919,045 Parks and recreation 1,178,756 ---1,178,756 Public works 4,521,902 -- 1,908,909 6,430,811 Capital outlay -- 1,370,686 27,539 1,398,225 Debt service: Principal retirement - - - 485,000 485,000 Interest and fiscal charges ---543,673 543,673 Total Expenditures 20,798,061 - 1,370,686 4,572,143 26,740,890 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,905,018 83,977 (1,330,874) 4,945,085 7,603,206 Other Financing Sources (Uses): Transfers in 1,276,919 - 1,308,216 1,192,380 3,777,515 Transfers out (2,125,116) (40,000)- (2,421,682)(4,586,798) Refunding bonds issued --- 8,024,092 8,024,092 Payment to refunded bond escrow agent --- (7,839,852)(7,839,852) Total Other Financing Sources (Uses) (848,197) (40,000) 1,308,216 (1,045,062) (625,043) Net Change in Fund Balances 3,056,821 43,977 (22,658) 3,900,023 6,978,163 Fund Balances, Beginning of Year 24,692,884 7,185,552 (17,227) 7,732,195 39,593,404 Fund Balances, End of Year 27,749,705$ 7,229,529$ (39,885)$ 11,632,218$ 46,571,567$ Special Revenue Funds Traffic Improvement Fund Capital Improvement Fund See Notes to Financial Statements.23 CITY OF DIAMOND BAR RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021 Net change in fund balances - total governmental funds 6,978,163$ 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 costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital Expenditures 1,563,577$ Depreciation Expense (7,783,811) (6,220,234) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Lease revenue bonds issued (8,024,092) Lease revenue bonds refunded 7,839,852 Principal payment 485,000 Amortization of bond premium 40,490 Deferred charge expensed in the current year 80,503 Compensated Absences (137,809)283,944 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.30,028 Pension contributions are expenditures in the governmental funds, but reduce the Net Pension Liability in the statement of net position and changes in the Net Pension Liability are expensed in statement of activities.(475,962) OPEB contributions are expenditures in the governmental funds, but reduce the Net OPEB Liability on the statement of net position and changes in the Net OPEB Liability are expensed in the statement of activities.(48,569) 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.(320,642) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities.(340,700) Change in Net Position of Governmental Activities (113,972)$ See Notes to Financial Statements.24 CITY OF DIAMOND BAR STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2021 Governmental Activities- Internal Service Funds Assets: Current: Cash and investments 2,392,666$ Due from other governments 713 Total Current Assets 2,393,379 Noncurrent: Capital assets - net of accumulated depreciation 468,081 Total Noncurrent Assets 468,081 Total Assets 2,861,460$ Liabilities and Net Position: Liabilities: Current: Accounts payable 51,882$ Total Current Liabilities 51,882 Total Liabilities 51,882 Net Position: Investment in capital assets 468,081 Unrestricted 2,341,497 Total Net Position 2,809,578 Total Liabilities and Net Position 2,861,460$ See Notes to Financial Statements.25 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 Governmental Activities- Internal Service Funds Operating Expenses: Insurance premiums 388,886$ Equipment repair and maintenance 578,690 Depreciation expense 207,524 Total Operating Expenses 1,175,100 Operating Income (Loss)(1,175,100) Nonoperating Revenues (Expenses): Interest revenue 25,117 Total Nonoperating Revenues (Expenses)25,117 Income (Loss) Before Transfers (1,149,983) Transfers in 882,783 Transfers out (73,500) Changes in Net Position (340,700) Net Position: Beginning of Fiscal Year 3,150,278 End of Fiscal Year 2,809,578$ See Notes to Financial Statements.26 CITY OF DIAMOND BAR STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2021 Governmental Activities- Internal Service Funds Cash Flows from Operating Activities: Insurance premiums paid (388,886)$ Payments to suppliers (611,862) Cash received from others 1,320 Net Cash Provided (Used) by Operating Activities (999,428) Cash Flows from Non-Capital Financing Activities: Cash transfers out (73,500) Cash transfers in 882,783 Net Cash Provided (Used) by Non-Capital Financing Activities 809,283 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (86,843) Net Cash Provided (Used) by Capital and Related Financing Activities (86,843) Cash Flows from Investing Activities: Interest received 25,116 Net Cash Provided (Used) by Investing Activities 25,116 Net Increase (Decrease) in Cash and Cash Equivalents (251,872) Cash and Cash Equivalents at Beginning of Year 2,644,538 Cash and Cash Equivalents at End of Year 2,392,666$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(1,175,100)$ Adjustments to Reconcile Operating Income (Loss) Net Cash Provided (Used) by Operating Activities: Depreciation 207,524 (Increase) decrease in due from other governments 1,320 Increase (decrease) in accounts payable (33,172) Total Adjustments 175,672 Net Cash Provided (Used) by Operating 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38 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2021 Note 2: Cash and Investments (Continued) Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type 12 Months or Less 1 - 3 years 3 - 5 years Total US Government Sponsored Securities -$ -$ 1,490,555$ 1,490,555 Certificate of Deposits 3,770,694 2,299,892 1,516,314 7,586,900 Corporate Bonds 753,095 1,551,346 - 2,304,441 Municipal Bonds 1,433,306 - 550,638 1,983,944 Local Agency Investment Fund (LAIF)36,872,773 - - 36,872,773 Held by Fiscal Agents: Money Market Mutual Funds 22,777 - - 22,777 42,852,645$ 3,851,238$ 3,557,507$ 50,261,390$ Remaining Maturity (in Months) 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. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Moody’s, as of year-end for each investment type: Investment Type Total as of June 30, 2021 Aaa Aa1 Aa2 Aa3 A1 A2 Unrated US Government Sponsored Securities 1,490,555$ 1,490,555$ -$ -$ -$ -$ -$ -$ Certificate of Deposits 7,586,900 - - - - - - 7,586,900 Corporate Bonds 2,304,441 500,118 - 1,283,567 - 520,756 - - Municipal Bonds 1,983,944 - - 956,144 - - 1,027,800 - Local Agency Investment Fund (LAIF) 36,872,773 - - - - - - 36,872,773 Held by Fiscal Agents: Money Market Mutual Funds 22,777 - - - - - - 22,777 50,261,390$ 1,990,673$ -$ 2,239,711$ -$ 520,756$ 1,027,800$ 44,482,450$ 39 &,7<2)',$021'%$5 127(672%$6,&),1$1&,$/67$7(0(176&217,18(' -81( 1RWH &DVKDQG,QYHVWPHQWV&RQWLQXHG )DLU9DOXH+LHUDUFK\ 7KH&LW\FDWHJRUL]HVLWVIDLUYDOXHPHDVXUHPHQWVZLWKLQWKHIDLUYDOXHKLHUDUFK\HVWDEOLVKHGE\ 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WKHDFWXDU\¶VEHVWHVWLPDWHRIIXWXUHSODQH[SHULHQFH Discount rate 7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDO23(%OLDELOLW\ZDV7KHSURMHFWLRQRIFDVK IORZVXVHGWRGHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDWWKH&LW\FRQWULEXWLRQVZLOOEHPDGHDW UDWHVHTXDOWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQUDWHV%DVHGRQWKRVHDVVXPSWLRQVWKH 23(%SODQ¶VILGXFLDU\QHWSRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWRPDNHDOOSURMHFWHGIXWXUH EHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUV7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ RQ 23(% SODQ LQYHVWPHQWV ZDV DSSOLHG WR DOO SHULRGV RI SURMHFWHG EHQHILW SD\PHQWV WR GHWHUPLQHWKHWRWDO23(%OLDELOLW\ Changes in the Net OPEB Liability 7KHFKDQJHVLQWKHQHW23(%OLDELOLW\DUHDVIROORZV 7RWDO23(% /LDELOLW\D 3ODQ)LGXFLDU\ 1HW3RVLWLRQE 1HW23(% /LDELOLW\$VVHWV F DE %DODQFHDW-XQH &KDQJHVUHFRJQL]HGIRUWKHPHDVXUHPHQWSHULRG 6HUYLFH&RVW ,QWHUHVW 'LIIHUHQFHEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV &RQWULEXWLRQVHPSOR\HU 1HWLQYHVWPHQWLQFRPH %HQHILWSD\PHQWV $GPLQLVWUDWLYHH[SHQVH 1HWFKDQJHV %DODQFHDW-XQH 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Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB $W-XQHWKH&LW\¶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¶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ariance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 24,692,884$24,692,884$24,692,884$-$ Resources (Inflows): Taxes 12,747,900 12,960,400 13,498,926 538,526 Licenses and Permits 1,687,609 1,958,579 2,113,823 155,244 Intergovernmental 6,691,600 7,393,226 8,448,369 1,055,143 Charges for Services 1,268,100 331,100 321,427 (9,673) Use of Money and Property 393,890 311,000 (97,951) (408,951) Fines and Forfeitures 328,750 203,125 263,147 60,022 Miscellaneous 193,630 131,505 155,338 23,833 Transfers In 1,386,528 1,386,528 1,276,919 (109,609) Amounts Available for Appropriations 49,390,891 49,368,347 50,672,882 1,304,535 Charges to Appropriations (Outflow): General Government City Council 186,071 177,071 162,890 14,181 City Attorney 225,950 274,027 163,526 110,501 City Manager/Clerk 1,628,943 1,637,725 1,504,016 133,709 Finance 815,552 869,332 825,224 44,108 Human Resources 365,313 412,692 405,213 7,479 Information Systems 1,314,915 1,337,670 1,237,309 100,361 Public Information 655,723 656,033 544,684 111,349 Eco. Development --115 (115) Contribution to OPEB Trust 88,000 88,000 -88,000 Diamond Bar Center 1,301,454 1,066,686 737,050 329,636 Subtotal General Government 6,581,921 6,519,236 5,580,027 939,209 Public Safety Law Enforcement 7,781,544 7,997,868 7,136,649 861,219 Volunteer Patrol 2,000 2,000 -2,000 Fire Protection 7,500 7,500 7,359 141 Animal Control 207,800 207,800 201,507 6,293 Emergency Preparedness 43,900 43,900 21,456 22,444 Subtotal Public Safety 8,042,744 8,259,068 7,366,971 892,097 Community Development Community Development & Planning Admin.769,975 780,475 676,743 103,732 Economic Development 246,653 246,653 221,916 24,737 Building & Safety 700,156 774,326 803,251 (28,925) Neighborhood Improvement 319,357 476,357 448,495 27,862 Subtotal Community Development 2,036,141 2,277,811 2,150,405 127,406 Parks and recreation Parks and Recreation Admin.1,747,511 1,395,124 1,178,756 216,368 Subtotal Parks and recreation 1,747,511 1,395,124 1,178,756 216,368 Public works Public Works Administration 610,321 663,534 599,017 64,517 Engineering 509,784 658,881 489,125 169,756 Road Maintenance 1,593,436 1,604,215 1,267,903 336,312 Landscape Maintenance 310,563 310,563 301,289 9,274 Landscape Maint-District #41 444,182 --- Parks & Facilities Maintenance 1,241,651 1,536,040 1,367,121 168,919 Civic Center 604,229 613,511 497,447 116,064 Subtotal Public works 5,314,166 5,386,744 4,521,902 864,842 Capital Outlay - 80,000 - 80,000 Transfers Out 2,502,411 2,679,243 2,125,116 554,127 Total Charges to Appropriations 26,224,894 26,597,226 22,923,177 3,674,049 Budgetary Fund Balance, June 30 23,165,997$22,771,121$27,749,705$4,978,584$ See Notes to Required Supplementary Information.58 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAFFIC IMPROVEMENT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 7,185,552$7,185,552$7,185,552$-$ Resources (Inflows): Intergovernmental 846,910 846,910 -(846,910) Use of money and property 95,000 84,000 83,977 (23) Amounts Available for Appropriations 8,127,462 8,116,462 7,269,529 (846,933) Charges to Appropriations (Outflow): Transfers out - 40,000 40,000 - Total Charges to Appropriations - 40,000 40,000 - Budgetary Fund Balance, June 30 8,127,462$8,076,462$7,229,529$(846,933)$ See Notes to Required Supplementary Information.59 CITY OF DIAMOND BAR MISCELLANEOUS RATE PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 Proportion of the Net Pension Liability 0.05155% 0.04862%0.05325% Proportionate Share of the Net Pension Liability 3,207,669$ 3,337,560$4,607,967$ Covered Payroll 4,376,117$ 4,650,369$4,551,711$ Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 73.30% 71.77%101.24% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40%74.06% Notes to Schedule: Changes of Assumptions: Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown. See Notes to Required Supplementary Information.60 2018 2019 2020 2021 0.05584% 0.05629% 0.15164%0.15559% 5,537,585$ 5,424,380$ 6,072,351$6,563,014$ 4,680,371$ 5,088,134$ 5,077,171$5,227,663$ 118.32% 106.61% 119.60%125.54% 73.31% 75.26% 75.26%75.10% See Notes to Required Supplementary Information.61 CITY OF DIAMOND BAR MISCELLANEOUS RATE PLAN SCHEDULE OF PLAN CONTRIBUTIONS - PENSION AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 Actuarially Determined Contribution 403,553$ 460,471$ 386,806$ Contribution in Relation to the Actuarially Determined Contribution (403,553) (587,684)(542,557) Contribution Deficiency (Excess)-$ (127,213)$ (155,751)$ Covered Payroll 4,650,369$ 4,551,711$4,680,371$ Contributions as a Percentage of Covered Payroll 8.68% 12.91%11.59% Note to Schedule: Valuation Date:June 30, 2019 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll, closed Asset valuation method Direct rate smoothing Inflation Payroll Growth Projected Salary Increases Investment Rate of Return 7.15% (net of administrative expenses) Retirement Age Mortality The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report. 2.500% 2.750% Varies by Entry Age and Service (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown. All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications. See Notes to Required Supplementary Information.62 2018 2019 2020 2021 418,739$ 710,349$ 1,005,631$939,844$ (618,219) (710,349) (1,005,631)(939,844) (199,480)$ -$ -$ -$ 5,088,134$ 5,077,171$ 5,227,663$5,417,136$ 12.15% 13.99% 19.24%17.35% See Notes to Required Supplementary Information.63 CITY OF DIAMOND BAR SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 2020 2021 Total OPEB Liability Service cost 55,838$ 57,513$ 41,976$ 43,235$ Interest on the total OPEB liability 41,616 46,352 53,641 57,448 Actual and expected experience difference --7,817 (54,653) Changes in assumptions -- 10,172 186,125 Benefit payments (17,988) (19,058) (28,427) (32,136) Net change in total OPEB liability 79,466 84,807 85,179 200,019 Total OPEB liability - beginning 702,459 781,925 866,732 951,911 Total OPEB liability - ending (a) 781,925 866,732 951,911 1,151,930 Plan Fiduciary Net Position Contribution - employer 102,579 106,186 116,427 32,136 Net investment income 7,102 18,278 20,741 27,335 Actual and expected experience difference --1,529 34,612 Benefit payments (17,988) (19,058) (28,427) (32,136) Administrative expense (132)(209)(302)(414) Net change in plan fiduciary net position 91,561 105,197 109,968 61,533 Plan fiduciary net position - beginning 149,069 240,630 345,827 455,795 Plan fiduciary net position - ending (b) 240,630$ 345,827$ 455,795$ 517,328$ Net OPEB Liability/(Assets) - ending (a) - (b)541,295$ 520,905$ 496,116$ 634,602$ Plan fiduciary net position as a percentage of the total OPEB liability 30.77% 39.90% 47.88% 44.91% Covered-employee payroll 5,163,684$ 5,077,171$ 6,113,473$ 5,417,136$ Net OPEB liability as a percentage of covered-employee payroll 10.48% 10.26% 8.12% 11.71% Notes to Schedule: Changes in assumptions: (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. The interest assumption changed from 6.00% to 5.75%. Assumed rates of retirement, termination, and mortality have been updated to align with those currently being used by the statewide pension systems. Medical trend in future years has been updated to 4% for all years from 6.0% tiered down by 0.5% per year to 4.5% in all future years. Medical inflation was changed to 4.0% in all years from 3.50%. See Notes to Required Supplementary Information.64 CITY OF DIAMOND BAR SCHEDULE OF CONTRIBUTIONS - OPEB AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 2020 2021 84,591$ 87,129$ 116,427$ 32,136$ (102,579) (106,186) (116,427) (32,136) (17,988)$ (19,057)$ -$ -$ 5,163,684$ 5,077,171$ 6,113,473$ 5,417,136$ 1.64%1.72%1.90%0.59% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Entry Age Level Percent of Pay Cost Method Discount rate 5.75% Salary increases Investment rate of return Healthcare cost trend rates PEMHCA Minimum Increase Rate Retirement and termination Mortality The mortality assumptions are based on the 2017 CalPERS Mortality for Miscellaneous and Schools Employees table created by CalPERS. CalPERS periodically studies mortality for participating agencies and establishes mortality tables that are modified versions of commonly used tables. This table incorporates mortality projection as deemed appropriate based on CalPERS analysis. 2.75% 4.50% for 2020-21; 3.50% for 2022-23 and after 5.75% 2.80% for 2021; 4.10% for 2022 and later years Retirement and termination assumptions used were based on a review of plan experience and our best estimate of future plan experience. (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. *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2021 were from the June 30, 2021 Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-employee payroll Contributions as a percentage of covered-employee payroll See Notes to Required Supplementary Information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¶GHILFLWVZLOOEHHOLPLQDWHGE\IXWXUH\HDUV¶UHYHQXHVDQGWUDQVIHUV *RYHUQPHQWDO)XQGV 7UDLOV %LNHZD\V)XQG 07$*UDQW)XQG &'%*)XQG /DQGVFDSH0DLQWHQDQFH'LVWULFW)XQG /RFDO5RDGZD\6DIHW\3ODQ)XQG +D]DUG0LWLJDWLRQ*UDQW)XQG &RPSOLDQFHZLWK%XGJHWDU\/LPLWDWLRQV 7KH 7UDQVSRUWDWLRQ *UDQW 6HZHU 0LWLJDWLRQ 07$ *UDQW :DVWH +DXOHU &$63 )HHV 6%DQG6WUHHW%HDXWLILFDWLRQVSHFLDOUHYHQXHIXQGVGLGQRWDGRSWEXGJHWVIRUWKH ILVFDO\HDUHQGHG-XQH 67 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Assets: Pooled cash and investments 222,670$ 908,168$ 1,875,965$ 1,072$ 1,511,188$ Receivables: Accounts ----138,538 Notes and loans ----- Due from other governments ----- Restricted assets: Cash and investments with fiscal agents ----- Total Assets 222,670$ 908,168$ 1,875,965$ 1,072$ 1,649,726$ Liabilities and Fund Balances: Liabilities: Accounts payable -$ 33,286$ 47,071$ -$ 10,345$ Accrued liabilities -1,054 595 -1,281 Due to other governments ----- Due to other funds ----- Total Liabilities -34,340 47,666 -11,626 Deferred Inflows of Resources: Unavailable revenues ----- Total Deferred Inflows of Resources ----- Fund Balances: Restricted for: Community development projects - - - - 1,638,100 Public safety ----- Highways and streets 222,670 873,828 1,828,299 1,072 - Capital Projects ----- Debt service ----- Unassigned ----- Total Fund Balances 222,670 873,828 1,828,299 1,072 1,638,100 Total Liabilities and Fund Balances 222,670$ 908,168$ 1,875,965$ 1,072$ 1,649,726$ State Gas Tax Fund Proposition A Transit Fund Proposition C Transit Fund Transportation Grant Fund Integrated Waste Management Fund Special Revenue Funds 68 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (CONTINUED) 57,238$ 177,954$ 1,491,815$ 2,033,386$ -$ ---89,832 - ----- -18,984 -103,327 - ----- 57,238$ 196,938$ 1,491,815$ 2,226,545$ -$ -$ 735$ -$ -$ -$ ----- ----- ----730 -735 --730 ----- ----- ----- ----- 57,238 --2,226,545 - -196,203 1,491,815 -- ----- ----(730) 57,238 196,203 1,491,815 2,226,545 (730) 57,238$ 196,938$ 1,491,815$ 2,226,545$ -$ Measure M Local Return Fund Road Maintenance & Rehab Trails & Bikeways Fund Sewer Mitigation Fund Air Quality Improvement Fund Special Revenue Funds 69 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances -$ 85,704$ 27,991$ 137,204$ -$ ----- ----400,791 56,599 ---32,592 ----- 56,599$ 85,704$ 27,991$ 137,204$ 433,383$ -$ -$ 463$ -$ 29,423$ ----35 ----400,791 56,599 ---4,526 56,599 -463 -434,775 56,599 ---- 56,599 ---- -85,704 27,528 137,204 - ----- ----- ----- ----- (56,599)---(1,392) (56,599)85,704 27,528 137,204 (1,392) 56,599$ 85,704$ 27,991$ 137,204$ 433,383$ Used Oil Block Grant Fund Park and Facility Development Fund CDBG Fund MTA Grant Fund Beverage Center Recycling Grant Fund Special Revenue Funds 70 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (CONTINUED) 338,243$ 8,351$ 181,512$ 820,121$ 514,883$ --11,915 -20,676 ----- ----- ----- 338,243$ 8,351$ 193,427$ 820,121$ 535,559$ -$ -$ 156,562$ -$ -$ --193-- ----- ----- --156,755 -- ----- ----- ----535,559 338,243 8,351 --- ---820,121- --36,672 -- ----- ----- 338,243 8,351 36,672 820,121 535,559 338,243$ 8,351$ 193,427$ 820,121$ 535,559$ Landscape Maintenance District Fund Measure R Local Return Fund PEG Fees Fund COPS Fund CLEEP Fund Special Revenue Funds 71 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 140,797$ 28,419$ 336,955$ -$ 660,284$ 35,242 ---- ----- ---31,064 - ----- 176,039$ 28,419$ 336,955$ 31,064$ 660,284$ -$ -$ -$ 23,863$ 9,868$ ----519 -2,183 - - - ---7,200 - -2,183 -31,063 10,387 ---31,064 - ---31,064 - -26,236 --649,897 ----- 176,039 -336,955 -- ----- ----- ---(31,063)- 176,039 26,236 336,955 (31,063)649,897 176,039$ 28,419$ 336,955$ 31,064$ 660,284$ CASP Fees (SB1186) Street Beautification Local Roadway Safety Plan Fund Measure W Local Return Fund Waste Hauler Fund Special Revenue Funds 72 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2021 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds Debt Service Funds Total Governmental Funds 15,000$ -$ 11,574,920$ --296,203 --400,791 22,540 -265,106 -22,777 22,777 37,540$ 22,777$ 12,559,797$ 30,053$ 1$ 341,670$ --3,677 --402,974 --69,055 30,053 1 817,376 22,540 -110,203 22,540 -110,203 --3,100,228 --346,594 --6,542,767 --1,724,690 -22,776 22,776 (15,053)-(104,837) (15,053)22,776 11,632,218 37,540$ 22,777$ 12,559,797$ Public Financing Authority Hazard Mitigation Grant Fund 73 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Revenues: Taxes -$ -$ -$ -$ -$ Licenses and permits ----- Intergovernmental 1,242,531 1,156,806 959,529 -- Charges for services -30,031 --563,308 Use of money and property 3,397 12,071 17,778 709 - Miscellaneous ----42,835 Total Revenues 1,245,928 1,198,908 977,307 709 606,143 Expenditures: Current: General government -800,000 --- Public safety ----- Community development - - - - 325,112 Public works -360,109 303,363 -- Capital outlay ----- Debt service: Principal retirement ----- Interest and fiscal charges ----- Total Expenditures - 1,160,109 303,363 - 325,112 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,245,928 38,799 673,944 709 281,031 Other Financing Sources (Uses): Transfers in ----- Transfers out (1,036,000)(43,570)(46,488)-(10,000) Refunding bonds issued ----- Payment to refunded bond escrow agent ----- Total Other Financing Sources (Uses) (1,036,000) (43,570)(46,488)-(10,000) Net Change in Fund Balances 209,928 (4,771) 627,456 709 271,031 Fund Balances, Beginning of Year 12,742 878,599 1,200,843 363 1,367,069 Fund Balances, End of Year 222,670$ 873,828$ 1,828,299$ 1,072$ 1,638,100$ Special Revenue Funds State Gas Tax Fund Proposition A Transit Fund Proposition C Transit Fund Transportation Grant Fund Integrated Waste Management Fund 74 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Refunding bonds issued Payment to refunded bond escrow agent Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ -$ ----- -74,661 816,516 1,059,978 - ----- 4,574 2,378 12,820 28,397 - ----- 4,574 77,039 829,336 1,088,375 - ----- ----- ----- ----- -27,539 --- ----- ----- -27,539 --- 4,574 49,500 829,336 1,088,375 - ----- --(98,706)(898,385)(730) ----- ----- --(98,706)(898,385)(730) 4,574 49,500 730,630 189,990 (730) 52,664 146,703 761,185 2,036,555 - 57,238$ 196,203$ 1,491,815$ 2,226,545$ (730)$ Special Revenue Funds Sewer Mitigation Fund Air Quality Improvement Fund Measure M Local Return Fund Road Maintenance & Rehab Trails & Bikeways Fund 75 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Refunding bonds issued Payment to refunded bond escrow agent Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ -$ -$ -$ ----- 264,253 14,337 6,974 4,715 447,681 ----- -841 356 2,648 - ---64,756 - 264,253 15,178 7,330 72,119 447,681 ----- ----- --11,545 -431,983 ----- ----- ----- ----- --11,545 -431,983 264,253 15,178 (4,215)72,119 15,698 ----- ---(82,253)(3,823) ----- ----- ---(82,253)(3,823) 264,253 15,178 (4,215)(10,134)11,875 (320,852)70,526 31,743 147,338 (13,267) (56,599)$ 85,704$ 27,528$ 137,204$ (1,392)$ Special Revenue Funds MTA Grant Fund Beverage Center Recycling Grant Fund Used Oil Block Grant Fund Park and Facility Development Fund CDBG Fund 76 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Refunding bonds issued Payment to refunded bond escrow agent Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ -$ 690,093$ -$ 84,915$ ----- 156,727 --720,644 - ----- 5,147 281 -4,841 5,437 ----- 161,874 281 690,093 725,485 90,352 ----3,429 4,900 ---- ----- -- 1,000,284 -- ----- ----- ----- 4,900 - 1,000,284 -3,429 156,974 281 (310,191)725,485 86,923 --310,190 -- (156,727)--(45,000)- ----- ----- (156,727)-310,190 (45,000)- 247 281 (1)680,485 86,923 337,996 8,070 36,673 139,636 448,636 338,243$ 8,351$ 36,672$ 820,121$ 535,559$ Special Revenue Funds COPS Fund CLEEP Fund Landscape Maintenance District Fund Measure R Local Return Fund PEG Fees Fund 77 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Refunding bonds issued Payment to refunded bond escrow agent Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ -$ -$ -$ 140,968 4,496 --- ---31,752 829,702 ----- 842 75 3,895 -2,533 ----- 141,810 4,571 3,895 31,752 832,235 ----- ----- ----- ---62,815 182,338 ----- ----- ----- ---62,815 182,338 141,810 4,571 3,895 (31,063)649,897 ----- ----- ----- ----- ----- 141,810 4,571 3,895 (31,063)649,897 34,229 21,665 333,060 -- 176,039$ 26,236$ 336,955$ (31,063)$ 649,897$ Special Revenue Funds Waste Hauler Fund CASP Fees (SB1186) Street Beautification Local Roadway Safety Plan Fund Measure W Local Return Fund 78 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Refunding bonds issued Payment to refunded bond escrow agent Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Debt Service Funds Total Governmental Funds -$ -$ 775,008$ --145,464 -- 7,786,806 --593,339 --109,020 --107,591 -- 9,517,228 --803,429 30,053 -34,953 --768,640 -- 1,908,909 --27,539 -485,000 485,000 -543,673 543,673 30,053 1,028,673 4,572,143 (30,053) (1,028,673) 4,945,085 15,000 867,190 1,192,380 -- (2,421,682) - 8,024,092 8,024,092 - (7,839,852) (7,839,852) 15,000 1,051,430 (1,045,062) (15,053)22,757 3,900,023 -197,732,195 (15,053)$ 22,776$ 11,632,218$ Hazard Mitigation Grant Fund Public Financing Authority 79 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE STATE GAS TAX FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 12,742$ 12,742$ 12,742$ -$ Resources (Inflows): Intergovernmental 1,348,727 1,323,366 1,242,531 (80,835) Use of money and property 3,000 1,500 3,397 1,897 Amounts Available for Appropriations 1,364,469 1,337,608 1,258,670 (78,938) Charges to Appropriations (Outflow): Transfers out 1,036,000 1,036,000 1,036,000 - Total Charges to Appropriations 1,036,000 1,036,000 1,036,000 - Budgetary Fund Balance, June 30 328,469$ 301,608$ 222,670$ (78,938)$ 80 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION A TRANSIT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 878,599$ 878,599$ 878,599$ -$ Resources (Inflows): Intergovernmental 1,211,864 1,211,864 1,156,806 (55,058) Charges for services 750,000 200,000 30,031 (169,969) Use of money and property 9,500 9,500 12,071 2,571 Amounts Available for Appropriations 2,849,963 2,299,963 2,077,507 (222,456) Charges to Appropriations (Outflow): General government - 800,000 800,000 - Parks and recreation 30,550 --- Public works 1,818,082 786,702 360,109 426,593 Transfers out 53,500 53,500 43,570 9,930 Total Charges to Appropriations 1,902,132 1,640,202 1,203,679 436,523 Budgetary Fund Balance, June 30 947,831$ 659,761$ 873,828$ 214,067$ 81 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION C TRANSIT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,200,843$1,200,843$1,200,843$-$ Resources (Inflows): Intergovernmental 1,005,209 1,005,209 959,529 (45,680) Use of money and property 15,500 14,000 17,778 3,778 Amounts Available for Appropriations 2,221,552 2,220,052 2,178,150 (41,902) Charges to Appropriations (Outflow): Public works 554,695 473,195 303,363 169,832 Transfers out 332,943 346,185 46,488 299,697 Total Charges to Appropriations 887,638 819,380 349,851 469,529 Budgetary Fund Balance, June 30 1,333,914$ 1,400,672$ 1,828,299$427,627$ 82 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE INTEGRATED WASTE MANAGEMENT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,367,069$1,367,069$1,367,069$-$ Resources (Inflows): Charges for services 572,267 572,267 563,308 (8,959) Miscellaneous 16,470 16,470 42,835 26,365 Amounts Available for Appropriations 1,955,806 1,955,806 1,973,212 17,406 Charges to Appropriations (Outflow): Community development 516,206 511,806 325,112 186,694 Transfers out 10,000 10,000 10,000 - Total Charges to Appropriations 526,206 521,806 335,112 186,694 Budgetary Fund Balance, June 30 1,429,600$ 1,434,000$ 1,638,100$204,100$ 83 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 146,703$ 146,703$ 146,703$ -$ Resources (Inflows): Intergovernmental 75,000 75,000 74,661 (339) Use of money and property 1,000 1,000 2,378 1,378 Amounts Available for Appropriations 222,703 222,703 223,742 1,039 Charges to Appropriations (Outflow): Capital outlay 75,000 96,000 27,539 68,461 Transfers out 24,930 24,930 -24,930 Total Charges to Appropriations 99,930 120,930 27,539 93,391 Budgetary Fund Balance, June 30 122,773$ 101,773$ 196,203$ 94,430$ 84 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MEASURE M LOCAL RETURN FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 761,185$ 761,185$ 761,185$ -$ Resources (Inflows): Intergovernmental 854,428 854,428 816,516 (37,912) Use of money and property 7,500 7,500 12,820 5,320 Amounts Available for Appropriations 1,623,113 1,623,113 1,590,521 (32,592) Charges to Appropriations (Outflow): Transfers out 290,470 380,019 98,706 281,313 Total Charges to Appropriations 290,470 380,019 98,706 281,313 Budgetary Fund Balance, June 30 1,332,643$1,243,094$1,491,815$248,721$ 85 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE ROAD MAINTENANCE & REHAB YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,036,555$2,036,555$2,036,555$-$ Resources (Inflows): Intergovernmental 988,146 1,026,055 1,059,978 33,923 Use of money and property 19,000 23,800 28,397 4,597 Amounts Available for Appropriations 3,043,701 3,086,410 3,124,930 38,520 Charges to Appropriations (Outflow): Transfers out 2,076,811 2,076,811 898,385 1,178,426 Total Charges to Appropriations 2,076,811 2,076,811 898,385 1,178,426 Budgetary Fund Balance, June 30 966,890$ 1,009,599$2,226,545$1,216,946$ 86 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAILS & BIKEWAYS FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 117,713 117,713 - (117,713) Amounts Available for Appropriations 117,713 117,713 - (117,713) Charges to Appropriations (Outflow): Transfers out 74,095 100,787 730 100,057 Total Charges to Appropriations 74,095 100,787 730 100,057 Budgetary Fund Balance, June 30 43,618$ 16,926$ (730)$ (17,656)$ 87 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE BEVERAGE CENTER RECYCLING GRANT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 70,526$ 70,526$ 70,526$ -$ Resources (Inflows): Intergovernmental 14,370 14,370 14,337 (33) Use of money and property 700 700 841 141 Amounts Available for Appropriations 85,596 85,596 85,704 108 Charges to Appropriations (Outflow): Community development 14,300 14,300 - 14,300 Total Charges to Appropriations 14,300 14,300 - 14,300 Budgetary Fund Balance, June 30 71,296$ 71,296$ 85,704$ 14,408$ 88 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE USED OIL BLOCK GRANT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 31,743$ 31,743$ 31,743$ -$ Resources (Inflows): Intergovernmental 15,535 15,535 6,974 (8,561) Use of money and property 200 200 356 156 Amounts Available for Appropriations 47,478 47,478 39,073 (8,405) Charges to Appropriations (Outflow): Community development 15,500 15,500 11,545 3,955 Total Charges to Appropriations 15,500 15,500 11,545 3,955 Budgetary Fund Balance, June 30 31,978$ 31,978$ 27,528$ (4,450)$ 89 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PARK AND FACILITY DEVELOPMENT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 147,338$ 147,338$ 147,338$ -$ Resources (Inflows): Intergovernmental -- 4,715 4,715 Use of money and property 4,800 1,700 2,648 948 Miscellaneous -- 64,756 64,756 Transfers in - 41,835 - (41,835) Amounts Available for Appropriations 152,138 190,873 219,457 28,584 Charges to Appropriations (Outflow): Transfers out - 92,681 82,253 10,428 Total Charges to Appropriations - 92,681 82,253 10,428 Budgetary Fund Balance, June 30 152,138$ 98,192$ 137,204$ 39,012$ 90 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG FUND) YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (13,267)$ (13,267)$ (13,267)$ -$ Resources (Inflows): Intergovernmental 470,152 487,242 447,681 (39,561) Amounts Available for Appropriations 456,885 473,975 434,414 (39,561) Charges to Appropriations (Outflow): Community development 470,152 470,152 431,983 38,169 Transfers out - 3,823 3,823 - Total Charges to Appropriations 470,152 473,975 435,806 38,169 Budgetary Fund Balance, June 30 (13,267)$ -$ (1,392)$ (1,392)$ 91 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 337,996$ 337,996$ 337,996$ -$ Resources (Inflows): Intergovernmental 100,000 100,000 156,727 56,727 Use of money and property 3,800 3,800 5,147 1,347 Amounts Available for Appropriations 441,796 441,796 499,870 58,074 Charges to Appropriations (Outflow): Public safety 10,000 10,000 4,900 5,100 Transfers out 120,654 120,654 156,727 (36,073) Total Charges to Appropriations 130,654 130,654 161,627 (30,973) Budgetary Fund Balance, June 30 311,142$ 311,142$ 338,243$ 27,101$ 92 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 8,070$ 8,070$ 8,070$ -$ Resources (Inflows): Use of money and property 100 100 281 181 Amounts Available for Appropriations 8,170 8,170 8,351 181 Charges to Appropriations (Outflow): Public safety 8,126 8,126 -8,126 Total Charges to Appropriations 8,126 8,126 -8,126 Budgetary Fund Balance, June 30 44$ 44$ 8,351$ 8,307$ 93 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE LANDSCAPE MAINTENANCE DISTRICT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 36,673$ 36,673$ 36,673$ -$ Resources (Inflows): Taxes 693,251 693,251 690,093 (3,158) Transfers in 432,731 467,271 310,190 (157,081) Amounts Available for Appropriations 1,162,655 1,197,195 1,036,956 (160,239) Charges to Appropriations (Outflow): Public works 1,125,983 1,178,523 1,000,284 178,239 Total Charges to Appropriations 1,125,983 1,178,523 1,000,284 178,239 Budgetary Fund Balance, June 30 36,672$ 18,672$ 36,672$ 18,000$ 94 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MEASURE R LOCAL RETURN FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 139,636$ 139,636$ 139,636$ -$ Resources (Inflows): Intergovernmental 753,985 753,985 720,644 (33,341) Use of money and property 3,500 1,500 4,841 3,341 Amounts Available for Appropriations 897,121 895,121 865,121 (30,000) Charges to Appropriations (Outflow): Transfers out - 45,000 45,000 - Total Charges to Appropriations - 45,000 45,000 - Budgetary Fund Balance, June 30 897,121$ 850,121$ 820,121$ (30,000)$ 95 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PEG FEES FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 448,636$ 448,636$ 448,636$ -$ Resources (Inflows): Taxes 100,000 100,000 84,915 (15,085) Use of money and property 4,000 5,000 5,437 437 Amounts Available for Appropriations 552,636 553,636 538,988 (14,648) Charges to Appropriations (Outflow): General government 55,000 55,000 3,429 51,571 Total Charges to Appropriations 55,000 55,000 3,429 51,571 Budgetary Fund Balance, June 30 497,636$ 498,636$ 535,559$ 36,923$ 96 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE LOCAL ROADWAY SAFETY PLAN FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental - 72,000 31,752 (40,248) Amounts Available for Appropriations - 72,000 31,752 (40,248) Charges to Appropriation (Outflow): Public works - 72,000 62,815 9,185 Total Charges to Appropriations - 72,000 62,815 9,185 Budgetary Fund Balance, June 30 -$ -$ (31,063)$ (31,063)$ 97 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MEASURE W LOCAL RETURN FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 800,000 829,702 829,702 - Use of money and property -- 2,533 2,533 Amounts Available for Appropriations 800,000 829,702 832,235 2,533 Charges to Appropriation (Outflow): Public works - 228,080 182,338 45,742 Total Charges to Appropriations - 228,080 182,338 45,742 Budgetary Fund Balance, June 30 800,000$ 601,622$ 649,897$ 48,275$ 98 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE HAZARD MITIGATION GRANT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 45,000 45,000 - (45,000) Transfers in 15,000 15,000 15,000 - Amounts Available for Appropriations 60,000 60,000 15,000 (45,000) Charges to Appropriation (Outflow): Public safety 60,000 60,000 30,053 29,947 Total Charges to Appropriations 60,000 60,000 30,053 29,947 Budgetary Fund Balance, June 30 -$ -$ (15,053)$ (15,053)$ 99 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (17,227)$ (17,227)$ (17,227)$ -$ Resources (Inflows): Intergovernmental 116,710 192,205 38,363 (153,842) Use of money and property -- 1,449 1,449 Transfers in 3,027,749 3,357,329 1,308,216 (2,049,113) Amounts Available for Appropriations 3,127,232 3,532,307 1,330,801 (2,201,506) Charges to Appropriations (Outflow): Public works 1,441,898 --- Capital outlay 1,702,559 3,549,533 1,370,686 2,178,847 Total Charges to Appropriations 3,144,457 3,549,533 1,370,686 2,178,847 Budgetary Fund Balance, June 30 (17,225)$ (17,226)$ (39,885)$ (22,659)$ 100 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2021 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 19$ 19$ 19$ -$ Resources (Inflows): Use of money and property 400 --- Transfers in 867,006 867,406 867,190 (216) Refinancing bonds issued -- 8,024,092 8,024,092 Amounts Available for Appropriations 867,425 867,425 8,891,301 8,023,876 Charges to Appropriations (Outflow): Debt service: Principal retirement 485,000 485,000 485,000 - Interest and fiscal charges 382,406 382,406 543,673 (161,267) Payment to refunded bond escrow agent - - 7,839,852 (7,839,852) Total Charges to Appropriations 867,406 867,406 8,868,525 (8,001,119) Budgetary Fund Balance, June 30 19$ 19$ 22,776$ 22,757$ 101 CITY OF DIAMOND BAR COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2021 Totals Assets: Current: Cash and investments 1,000,000$ 145,492$ 935,732$ 311,442$ 2,392,666$ Due from other governments 713 ---713 Total Current Assets 1,000,713 145,492 935,732 311,442 2,393,379 Noncurrent: Capital assets - net of accumulated depreciation -141,176 326,905 -468,081 Total Noncurrent Assets -141,176 326,905 -468,081 Total Assets 1,000,713$ 286,668$ 1,262,637$ 311,442$ 2,861,460$ Liabilities: Current: Accounts payable -$ 3,360$ 44,632$ 3,890$ 51,882$ . Total Current Liabilities -3,360 44,632 3,890 51,882 Total Liabilities -3,360 44,632 3,890 51,882 Net Position: Investment in capital assets -141,176 326,905 -468,081 Unrestricted 1,000,713 142,132 891,100 307,552 2,341,497 Total Net Position 1,000,713 283,308 1,218,005 307,552 2,809,578 1,000,713$ 286,668$ 1,262,637$ 311,442$ 2,861,460$ Governmental Activities - Internal Service Funds Self Insurance Fund Equipment Replacement Fund Computer Equipment Replacement Fund Building Facility & Maintenance Fund Liabilities and Net Position: Total Liabilities and Net Position 102 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2021 Totals Operating Expenses: Insurance premiums 388,886$ -$ -$ -$ 388,886$ Equipment repair and maintenance - 106,450 320,546 151,694 578,690 Depreciation expense -56,135 151,389 -207,524 Total Operating Expenses 388,886 162,585 471,935 151,694 1,175,100 Operating Income (Loss)(388,886) (162,585) (471,935) (151,694) (1,175,100) Nonoperating Revenues (Expenses): Interest revenue 9,057 1,127 12,495 2,438 25,117 Total Nonoperating Revenues (Expenses) 9,057 1,127 12,495 2,438 25,117 Income (Loss) Before Transfers (379,829) (161,458) (459,440) (149,256) (1,149,983) Transfers in 377,648 172,150 91,150 241,835 882,783 Transfers out ---(73,500) (73,500) Changes in Net Position (2,181)10,692 (368,290)19,079 (340,700) Net Position: Beginning of Year 1,002,894 272,616 1,586,295 288,473 3,150,278 End of Fiscal Year 1,000,713$ 283,308$ 1,218,005$ 307,552$ 2,809,578$ Governmental Activities - Internal Service Funds Self Insurance Fund Equipment Replacement Fund Computer Equipment Replacement Fund Building Facility & Maintenance Fund 103 CITY OF DIAMOND BAR COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2021 Totals Cash Flows from Operating Activities: Insurance premiums paid (388,886)$ -$ -$ -$ (388,886)$ Payments to suppliers - (104,904) (359,154) (147,804)(611,862) Cash received from others 1,320 ---1,320 Net Cash Provided (Used) by Operating Activities (387,566) (104,904) (359,154) (147,804) (999,428) Cash Flows from Non-Capital Financing Activities: Cash transfers out ---(73,500)(73,500) Cash transfers in 377,648 172,150 91,150 241,835 882,783 Net Cash Provided (Used) by Non-Capital Financing Activities 377,648 172,150 91,150 168,335 809,283 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets -(86,843)--(86,843) Net Cash Provided (Used) by Capital and Related Financing Activities -(86,843)--(86,843) Cash Flows from Investing Activities: Interest received 9,057 1,127 12,494 2,438 25,116 Net Cash Provided (Used) by Investing Activities 9,057 1,127 12,494 2,438 25,116 Net Increase (Decrease) in Cash and Cash Equivalents (861) (18,470) (255,510)22,969 (251,872) Cash and Cash Equivalents at Beginning of Year 1,000,861 163,962 1,191,242 288,473 2,644,538 Cash and Cash Equivalents at End of Year 1,000,000$ 145,492$ 935,732$ 311,442$ 2,392,666$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(388,886)$ (162,585)$ (471,935)$ (151,694)$ (1,175,100)$ Adjustments to Reconcile Operating Income (Loss) Net Cash Provided (Used) by Operating Activities: Depreciation -56,135 151,389 -207,524 (Increase) decrease in due from other governments 1,320 ---1,320 Increase (decrease) in accounts payable -1,546 (38,608)3,890 (33,172) Total Adjustments 1,320 57,681 112,781 3,890 175,672 Net Cash Provided (Used) by Operating Activities (387,566)$ (104,904)$ (359,154)$ (147,804)$ (999,428)$ Governmental Activities - Internal Service Funds Self Insurance Fund Equipment Replacement Fund Computer Equipment Replacement Fund Building Facility & Maintenance Fund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iscal Year 2017 2018 2019 2020 2021 Governmental activities: Net investment in capital assets 358,765,476$ 354,824,312$ 350,017,830$ 345,260,286$ 339,727,186$ Restricted for: Capital projects 184,074 356,711 655,124 944,561 1,724,690 Community development 2,066,650 1,907,215 2,137,080 2,086,977 3,100,228 Public safety 243,642 235,752 286,848 346,066 346,594 Public works 3,095,734 3,268,495 10,721,764 11,874,243 13,772,296 Debt service 80 199 361 19 22,776 Unrestricted 23,047,078 21,270,741 21,083,148 21,513,688 23,604,159 Total governmental activities net position 387,402,734$ 381,863,425$ 384,902,155$ 382,025,840$ 382,297,929$ Fiscal Year 2012 2013 2014 2015 2016 Governmental activities: Net investment in capital assets 382,660,310$ 378,511,311$ 372,068,596$ 368,779,901$ 363,216,277$ Restricted for: Capital projects 163,603 165,587 135,914 207,205 267,984 Community development 958,293 1,084,434 1,174,082 1,482,522 2,382,667 Public safety 285,508 196,503 140,747 171,928 193,941 Public works 3,504,339 3,964,252 4,015,113 3,862,123 4,465,023 Debt service 2 3 4 3 29 Unrestricted 18,288,491 18,508,423 20,894,700 20,659,058 22,742,992 Total governmental activities net position 405,860,546$ 402,430,513$ 398,429,156$ 395,162,740$ 393,268,913$ Source: City Finance Department Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) City of Diamond Bar 107 2012 2013 2014 2015 2016 Expenses: Governmental Activities: General government 6,384,072$ 6,942,983$ 7,301,502$ 6,524,968$ 5,812,525$ Public safety 6,104,982 5,831,227 5,627,026 5,929,156 6,216,279 Public works 11,248,137 10,197,098 10,599,386 10,225,922 11,966,721 Community development 2,126,906 1,980,646 2,346,073 2,587,504 2,127,206 Parks and recreation 5,559,427 5,591,916 6,463,192 6,300,920 6,137,787 Interest on long-term debt 848,976 487,369 477,201 466,662 455,700 Contribution to OPEB Trust - - - - 84,761 Total Primary Government 32,272,500 31,031,239 32,814,380 32,035,132 32,800,979 Program Revenues: Governmental Activities: Charges for services General Government 247,248 160,379 770,908 587,081 661,910 Public safety 491,831 502,948 559,008 523,145 470,722 Public works 2,555,900 2,604,053 2,671,741 5,536,984 4,389,876 Community development 1,006,971 1,196,806 1,413,094 2,463,932 1,820,325 Parks, recreation and culture 1,753,585 1,689,497 1,804,189 1,758,319 1,684,814 Operating grants and contributions 4,992,856 4,024,537 4,203,990 4,443,765 3,687,015 Capital grants and contributions 1,242,636 690,732 207,971 717,961 1,455,770 Total Governmental Activities Program Revenues 12,291,027 10,868,952 11,630,901 16,031,187 14,170,432 General Revenues: Taxes Property taxes 3,951,722 4,080,273 4,307,077 4,448,566 4,665,140 Transient occupancy taxes 692,162 782,952 851,249 935,355 994,476 Sales taxes 3,397,259 3,546,239 3,658,327 3,974,564 4,598,858 Franchise taxes 1,415,924 1,465,666 1,393,584 1,460,342 1,431,513 Other taxes 202,951 333,250 471,455 442,914 523,015 Unrestricted Motor vehicle in lieu 4,646,985 4,659,994 4,862,100 5,133,910 5,411,143 Use of money and property 145,408 6,307 256,758 244,275 524,918 Other revenues 46,342 533,475 52,891 114,545 703,457 Loss on disposal of capital asset - (21,057) 1,328,681 - - Total General Revenues 14,498,753 15,387,099 17,182,122 16,754,471 18,852,520 Change in Net Position (5,482,720) (4,775,188) (4,001,357) 750,526 221,973 Net Position at Beginning of Year 410,783,597 405,860,546 402,430,513 398,429,156 395,162,740 Restatement of Net Position 559,669 1,345,156 - (4,016,942) (2,115,800) Net Position at End of Year 405,860,546$ 402,430,513$ 398,429,156$ 395,162,740$ 393,268,913$ Source: City Finance Department City of Diamond Bar Fiscal Year Ended June 30, (accrual basis of accounting) Last Ten Fiscal Years Changes in Net Position 108 2017 2018 2019 2020 2021 6,627,894$ 6,926,331$ 8,990,203$ 6,693,192$ 7,810,434$ 6,586,188 6,904,971 7,142,733 7,371,290 7,401,924 14,178,723 14,612,857 13,644,523 14,435,606 11,626,695 3,231,764 3,083,101 3,069,374 3,138,506 3,128,813 5,164,413 5,532,810 6,149,343 5,188,798 3,802,025 443,480 423,400 402,671 385,006 392,652 84,761 84,591 87,128 88,000 - 36,317,223 37,568,061 39,485,975 37,300,398 34,162,543 811,846 619,147 1,248,171 431,216 642,791 460,325 459,615 415,701 432,774 263,147 2,675,313 3,782,259 9,797,871 2,312,413 2,881,793 2,077,810 2,023,466 2,110,515 1,914,403 2,260,454 1,544,002 1,648,945 1,347,448 848,675 319,896 3,844,192 4,120,526 5,651,932 4,938,893 5,919,399 359,669 159,258 12,595 1,098,879 302,616 11,773,157 12,813,216 20,584,233 11,977,253 12,590,096 4,951,033 5,187,630 5,405,335 5,590,899 5,873,328 923,527 1,019,915 1,222,925 1,128,386 797,785 4,789,172 4,999,873 4,970,980 4,846,330 5,106,920 1,320,617 1,419,605 1,355,003 1,340,960 1,390,250 394,961 509,322 1,062,003 1,070,672 1,105,651 5,757,423 6,011,177 6,285,504 6,545,989 6,804,019 58,160 67,046 1,397,727 1,378,227 121,612 482,994 161,145 240,995 139,321 258,910 - - - - - 18,677,887 19,375,713 21,940,472 22,040,784 21,458,475 (5,866,179) (5,379,132) 3,038,730 (3,282,361) (113,972) 393,268,913 387,402,734 381,863,425 384,902,155 382,025,840 - (160,177) - 406,046 386,061 387,402,734$ 381,863,425$ 384,902,155$ 382,025,840$ 382,297,929$ 109 General fund:2012 2013 2014 2015 2016 Nonspendable: Prepaid costs 28,114$ 26,331$ 62,752$ 75,887$ 75,866$ Committed to: Emergency contingencies 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 Unassigned 12,616,200 13,010,385 15,199,698 17,656,659 19,350,943 Total general fund 17,144,314 17,536,716 19,762,450 22,232,546 23,926,809 All other governmental funds: Restricted for: Comm development projects 958,293 1,085,184 1,174,082 1,482,522 2,382,667 Public safety 285,508 196,503 140,747 171,928 193,941 Highways and streets 3,170,407 3,964,252 4,015,113 3,862,123 3,541,041 Capital projects 164,867 165,587 135,914 207,205 267,984 Debt service 2 3 4 3 29 Assigned to: Capital Projects - 2,730 - - - Unassigned - (3,466) (88,639) (71,561) 18,047 Total all other governmental funds 4,579,077 5,410,793 5,377,221 5,652,220 6,403,709 Total fund balances 21,723,391$ 22,947,509$ 25,139,671$ 27,884,766$ 30,330,518$ Note: The City implemented GASB 54, titled "Fund Balance Reporting and Governmental Fund Type Definitions" as of the fiscal year ended June 30, 2011. Source: City Finance Department (modified accrual basis of accounting) Last Ten Fiscal Years Fund Balances of Governmental Funds City of Diamond Bar 110 2017 2018 2019 2020 2021 42,108$ 8,230$ 26,203$ 4,496$ 2,275$ 4,500,000 4,500,000 4,500,000 6,000,627 6,797,181 20,379,854 19,440,147 18,583,174 18,687,761 20,950,249 24,921,962 23,948,377 23,109,377 24,692,884 27,749,705 2,066,650 1,907,215 2,137,080 2,086,977 3,100,228 243,642 235,752 286,848 346,066 346,594 3,095,514 3,268,495 10,721,764 11,874,243 13,772,296 184,074 356,711 655,124 944,561 1,724,690 80 199 361 19 22,776 - - - - - (290,141) (49,618) (557,242) (351,346) (144,722) 5,299,819 5,718,754 13,243,935 14,900,520 18,821,862 30,221,781$ 29,667,131$ 36,353,312$ 39,593,404$ 46,571,567$ 111 2012 2013 2014 2015 2016 Revenues: Taxes 9,664,801$ 10,200,419$ 10,638,609$ 10,730,234$ 12,930,081$ Special assessments 547,209 550,609 549,402 672,492 781,232 Intergovernmental 11,053,326 10,427,352 10,281,985 11,185,489 10,384,417 Charges for services 3,190,675 3,238,165 3,321,883 3,344,356 3,101,103 Fines and forfeitures 509,166 522,142 582,844 523,145 470,722 Licenses and permits 1,127,569 1,238,626 1,542,765 5,474,765 4,121,387 Use of money and property 183,507 30,116 281,752 273,656 563,300 Other 54,634 551,710 85,558 136,786 716,914 Total revenues 26,330,887 26,759,139 27,284,798 32,340,923 33,069,156 Expenditures: Current: General government 5,485,001 4,214,834 5,115,321 5,040,491 5,177,288 Public safety 5,731,595 5,678,614 5,602,021 5,914,404 6,201,985 Public works 6,609,087 5,263,046 5,698,765 5,216,083 5,531,705 Parks, recreation and culture 4,090,551 4,050,161 4,406,954 4,225,938 4,232,431 Community development 2,114,433 2,010,040 2,225,647 2,540,430 2,313,053 Capital outlay 6,702,615 3,031,168 2,518,617 4,646,891 5,598,997 Debt service: Principal retirement 12,510,000 335,000 350,000 365,000 385,000 Interest and fiscal charges 406,626 502,291 492,159 481,656 470,741 Total expenditures 43,649,908 25,085,154 26,409,484 28,430,893 29,911,200 Excess (deficiency) of revenues over (under) expenditures (17,319,021) 1,673,985 875,314 3,910,030 3,157,956 Other financing sources (uses): Bond issued or refinancing 11,790,000 - - - - Bonds discount or premium 252,381 - - - - Payment to refunded bond escrow - - - - - Transfers in 6,085,337 5,195,892 4,856,728 7,084,629 7,287,721 Transfers out (6,494,449) (5,690,201) (5,822,286) (8,249,564) (7,999,925) Proceeds from sale of capital asset - - 2,282,406 - - Total other financing sources (uses)11,633,269 (494,309) 1,316,848 (1,164,935) (712,204) Net changes in fund balances (5,685,752)$ 1,179,676$ 2,192,162$ 2,745,095$ 2,445,752$ Debt service as a percentage of noncapital expenditures 35.00%3.49%3.35%3.48%3.24% Source: City Finance Department Fiscal Year Ended June 30, (modified accrual basis of accounting) Last Ten Fiscal Years Changes in Fund Balances, Governmental Funds City of Diamond Bar 112 2017 2018 2019 2020 2021 12,698,595$ 13,031,475$ 13,233,033$ 13,200,479$ 13,498,926$ 769,014 788,971 783,213 776,768 775,008 11,668,517 11,753,427 14,013,870 14,110,518 16,273,538 2,899,321 2,972,508 2,540,344 1,864,015 914,766 460,325 459,615 415,701 432,774 263,147 2,355,980 3,128,048 9,337,213 2,246,294 2,259,287 28,478 39,014 1,361,323 1,326,838 96,495 561,288 189,350 278,317 201,503 262,929 31,441,518 32,362,408 41,963,014 34,159,189 34,344,096 5,560,482 5,956,082 8,078,152 5,607,821 6,383,456 6,576,954 6,898,325 7,136,362 7,371,290 7,401,924 8,964,282 9,298,972 8,653,425 8,860,331 6,430,811 2,723,558 2,893,702 3,075,935 2,699,950 1,178,756 2,985,973 2,874,443 2,900,120 2,871,762 2,919,045 3,041,443 3,230,907 2,709,445 2,604,402 1,398,225 400,000 420,000 440,000 460,000 485,000 459,191 439,191 418,191 400,591 543,673 30,711,883 32,011,622 33,411,630 30,876,147 26,740,890 729,635 350,786 8,551,384 3,283,042 7,603,206 - - - - 8,024,092 - - - - - - - - (7,839,852) 6,395,368 6,758,082 5,962,151 7,173,287 3,777,515 (6,831,304) (7,663,738) (7,827,354) (7,622,283) (4,586,798) - - - - - (435,936) (905,656) (1,865,203) (448,996) (625,043) 293,699$ (554,870)$ 6,686,181$ 2,834,046$ 6,978,163$ 3.08% 2.95% 2.81% 3.03%4.24% 113 Source: Los Angeles County Assessor Annual Tax Increment Tables. 114 Fiscal Year Less Total Taxable Total Ended Secured Unsecured Other Tax Assessed Direct June 30, Property Property Property Exemptions Value Tax Rate % Change 2011-12 7,347,032,537$ 77,283,606$ -$ 74,296,191$ 7,350,019,952$ 0.0527 2.17% 2012-13 7,471,528,800 76,724,231 - 78,856,697 7,469,396,334 0.0527 1.62% 2013-14 7,765,883,788 69,544,511 - 83,574,453 7,751,853,846 0.0526 3.78% 2014-15 8,201,610,010 70,524,426 - 83,189,280 8,188,945,156 0.0526 5.64% 2015-16 8,649,508,385 72,343,401 - 85,103,082 8,636,748,704 0.0526 5.47% 2016-17 9,175,049,277 74,892,798 - 62,484,967 9,187,457,108 0.0525 6.38% 2017-18 9,589,040,619 76,356,565 - 78,363,662 9,587,033,522 0.0525 4.35% 2018-19 10,037,428,342 83,787,675 - 90,713,106 10,030,502,911 0.0525 4.63% 2019-20 10,435,977,033 76,572,055 - 93,257,612 10,419,291,476 0.0525 3.88% 2020-21 10,743,692,672 94,903,135 - 90,417,003 10,748,178,804 0.0524 3.88% Note: Exempt values are not included in Total Net Taxable Values. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: HDL Coren & Cone and Los Angeles County Assessor's Combined Tax Rolls. Taxable Property Values (unaudited) City of Diamond Bar Assessed and Estimated Actual Values of Taxable Property Real Property Last Ten Fiscal Years $- $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21Millions Fiscal Year Net Assessed Value 115 Agency 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Basic Levy*1.000 1.000 1.000 1.000 1.000 1.000 1.000 Metropolitan Water District 0.004 0.004 0.004 0.004 0.004 0.004 0.004 Mt. San Antonio College 0.026 0.029 0.020 0.021 0.022 0.024 0.024 Pomona Unified School Dist 0.174 0.185 0.164 0.166 0.154 0.144 0.173 Walnut Valley Unified School Dist 0.117 0.126 0.113 0.115 0.093 0.066 0.074 Total Direct & Overlapping Tax Rates 1.321 1.343 1.301 1.306 1.272 1.237 1.274 City's Share of 1% Levy Per Prop 13*0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 General Obligation Debt Rate Redevelopment Rate* Total Direct Rate*0.0527 0.0527 0.0526 0.0526 0.0526 0.0525 0.0525 * In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for the Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school district the property is located in. Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. RDA rate is based on the largest RDA tax rate area(TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. City of Diamond Bar Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Value) 116 2018/19 2019/20 2020/21 1.000 1.000 1.000 0.004 0.004 0.004 0.024 0.048 0.045 0.169 0.207 0.151 0.106 0.095 0.099 1.303 1.354 1.298 0.0519 0.0519 0.0519 0.0525 0.0524 0.0524 117 Sec & Unsecured Percentage of Total 2020-21 Assessed Valuation Net Assessed Valuation Apex 2015 LLC 72,250,000$ 0.67% Roic Diamond Hills Plaza LLC 55,145,661 0.51% BSP Senita Gateway Center LLC 47,627,013 0.44% Emerald Pointe Apartments LLC 41,757,679 0.39% Bridgegate Drive Properties LLC 32,200,380 0.30% Diamond Springs LLC 31,369,227 0.29% Hua Qing Enterprise LLC 31,295,056 0.29% ROIC DBTC LLC Lessor 30,851,952 0.28% Target Corporation 29,926,174 0.28% Muller Rock 2 Gateway 29,429,069 0.27% Top Ten Total 401,852,211$ 3.72% City Total 10,838,595,807$ Percentage of Total 2011-12 Assessed Valuation Net Assessed Valuation DB Gateway Corporate Inc 43,000,000$ 0.59% Country Hills Holding LLC 42,924,926 0.58% VIF II Hampton at Diamond Bar LLC 38,117,493 0.52% CRP 2 Holdings CC LP 32,100,000 0.44% Target Corporation 28,496,911 0.36% Muller Rock 2 Gateway 25,121,402 0.35% Diamond Bar Income PTRS Holding 23,200,000 0.32% Hua Qing Enterprise LLC 18,135,540 0.25% Gateway Corporate Center LP 17,600,000 0.24% Margaret M. Tam Trust 17,322,689 0.24% Top Ten Total 286,018,961$ 3.89% City Total 7,350,019,952$ Source: Hdl Coren & Cone. City of Diamond Bar Top 10 Property Taxpayers Current Year and Nine Years Ago 118 Fiscal Year Taxes Levied Ended for the June 30 Fiscal Year Amount % to Levy Years % to Levy 2012 3,844,101$ 3,506,696$ 91.22% 337,405 8.78% 2013 3,908,533 3,778,461 96.67% 130,072 3.33% 2014 4,075,791 3,960,684 97.18% 115,107 2.82% 2015 4,326,040 4,189,390 96.84% 136,650 3.16% 2016 4,568,789 4,412,561 96.58% 156,228 3.42% 2017 4,842,897 4,643,891 95.89% 199,007 4.11% 2018 5,081,117 4,838,019 95.22% 243,098 4.78% 2019 5,313,057 5,131,554 96.58% 181,503 3.42% 2020 5,540,291 5,267,524 95.08% 272,767 4.92% 2021 5,681,444 5,847,155 102.92%0 0.00% Source: Los Angeles County Auditor/Controller. City Finance Department Collected within the Collections in Subsequent (unaudited) City of Diamond Bar Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year of Levy 119 THIS PAGE INTENTIONALLY LEFT BLANK 120 Fiscal Year Lease Unamortized Total Total % of Debt Ended Revenue Bond Premium Governmental Primary Personal Per June 30 Bonds (a) (Discount) Activities Government Income (b) Capita (b) 2012 11,470,000$ 243,853$ 11,713,853$ 11,713,853$ 0.63% 210 2013 11,135,000 229,727 11,364,727 11,364,727 0.57% 203 2014 10,785,000 215,601 11,000,601 11,000,601 0.55% 195 2015 10,420,000 201,475 10,621,475 10,621,475 0.55% 188 2016 10,035,000 187,349 10,222,349 10,222,349 0.53% 179 2017 9,635,000 173,223 9,808,223 9,808,223 0.50% 172 2018 9,215,000 159,097 9,374,097 9,374,097 0.48% 163 2019 8,775,000 144,971 8,919,971 8,919,971 0.43% 155 2020 8,315,000 130,845 8,445,845 8,445,845 0.40% 148 2021 6,735,000 1,289,092 8,024,092 8,024,092 0.38% 140 Note: (a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements. (b) Details regarding the City's population and personal income can be found in the Demographic and Economic Statistics Table. Source: City Finance Department Governmental Activities CITY OF DIAMOND BAR, CALIFORNIA Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 121 Gross Bonded % Applicable Net Bonded Debt Balance To City (1) Debt Direct Debt Diamond Bar Lease Revenue Bond 8,024,092$ 100.000 8,024,092$ Overlapping Debts (2) 330.10 Metropolitan Water District 13,101,783 0.681 89,160 809.56 Mt San Antonio CCD DS 2008 Series 13A 161,337,332 10.749 17,342,132 809.57 Mt San Antonio CCD DS 2008 Series 2013B 2,610,000 10.749 280,549 809.58 Mt San Antonio CCD DS 2013 Series A 18,045,000 10.749 1,939,655 809.59 Mt San Antonio CCD DS 2013 Series B 21,260,000 10.749 2,285,235 809.60 Mt San Antonio CCD DS 2008 Series 2015C 7,315,000 10.749 786,289 809.61 Mt San Antonio CCD DS 2015 Ref Bonds 16,415,000 10.749 1,764,446 809.62 Mt San Antonio CCD DS 2018 Series 2019A 288,690,000 10.749 31,031,255 809.63 Mt San Antonio CCD DS 2020 Series A 180,433,674 10.749 19,394,795 915.62 Pomona Unified School District 2000 Ser A 9,995,000 18.948 1,893,856 915.64 Pomona Unified SD Refunding 2001 Ser A 132,280,000 18.948 25,064,458 915.72 Pomona USD DS 2008 Series B 1,630,000 18.948 308,856 915.73 Pomona USD 2008 Series C 1,030,000 18.948 195,165 915.75 Pomona USD DS 2012 Refunding Bond Series B 16,275,000 18.948 3,083,792 915.76 Pomona USD DS 2008 Series D QSCBS 19,225,000 18.948 3,642,759 915.77 Pomona USD DS 2008 Series E 13,055,000 18.948 2,473,666 915.78 Pomona USD DS 2008 Series F 21,550,000 18.948 4,083,301 915.79 Pomona USD DS 2015 Ref Bonds 14,170,000 18.948 2,684,936 915.80 Pomona USD DS 2016 Ref Bond Series B 19,614,533 18.948 3,716,568 915.81 Pomona USD DS 2008 Ref Bond Series G 22,965,000 18.948 4,351,416 915.82 Pomona USD DS 2016 Ref Bonds 5,245,000 18.948 993,824 915.83 Pomona USD DS 2016 Series A 42,095,000 18.948 7,976,175 915.85 Pomona USD DS 2016 Series C 49,300,000 18.948 9,341,380 980.59 Walnut Valley Unified SD 2000 Series D 10,749,084 59.626 6,409,228 980.60 Walnut Valley Unified SD 2000 Series E 4,123,484 59.626 2,458,661 980.64 Walnut Valley Unified SD 2011 Refunding 380,000 59.626 226,578 980.65 Walnut Valley Unified SD 2007 Series B Meas. S 10,004,472 59.626 5,965,247 980.69 Walnut Valley USD 2014 Ref Bonds Series A 3,260,000 59.626 1,943,801 980.70 Walnut Valley USD 2014 Ref Bonds Series B 1,535,000 59.626 915,256 980.71 Walnut Valley USD 2016 Ref Bonds 38,260,000 59.626 22,812,835 980.72 Walnut Valley USD 2016 Series A 38,440,000 59.626 22,920,161 980.73 Walnut Valley USD 2019 Ref Bonds 25,360,000 59.626 15,121,105 980.72 Walnut Valley USD 2016 Series B 47,900,000 59.626 28,560,763 Total Overlapping Debts:1,257,649,362 252,057,303 Grand Total Direct and Overlapping Debt:1,265,673,454$ 260,081,395$ Debt to Assessed Valuation Ratios: 2019/20 Net Assessed Valuation: $ 10,419,291,476 Direct Debt0.08%$140 2019 City Population: 57,177 Overlapping Debt 2.02%$4,408 Total Debt 2.10%$4,549 Note: (1)Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city. (2)The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city. Source: Hdl Coren & Cone U.S. Census Bureau City Finance Department (unaudited) CITY OF DIAMOND BAR, CALIFORNIA Direct and Overlapping Debt June 30, 2021 122 Gross Bonded % Applicable Net Bonded Debt Balance To City (1) Debt Direct Debt as of June 30, 2010 146.01 Diamond Bar Lease Revenue Bond 11,470,000$ 100.000 11,470,000$ Overlapping Debts 330.10 Metropolitan Water District 94,031,705 0.851 800,418 809.51 Mt San Antomio CCD 2004 Series B 6,200,000 10.871 674,013 809.52 Mt San Antomio CCD 2005 Refunding Bond 48,600,843 10.871 5,283,484 809.53 Mt San Antomio CCD 2001 Series C 2006 79,212,694 10.871 8,611,352 809.54 Mt San Antomio CCD 2001 Series D 2008 23,827,409 10.871 2,590,320 915.62 Pomona Unified SD 2000 Series A 16,585,000 20.159 3,343,418 915.64 Pomona Unified SD Ref 2001 Series A 16,905,000 20.159 3,407,927 915.65 Pomona Unified SD Ref 2002 Series A 350,000 20.159 70,557 915.66 Pomona Unified SD Ref 2002 Series B 505,000 20.159 101,804 915.67 Pomona Unified SD Ref 2002 Series C 490,000 20.159 98,780 915.68 Pomona Unified SD Ref 2002 Series D 12,620,000 20.159 2,544,102 915.69 Pomona Unified SD Ref 2002 Series E 11,800,000 20.159 2,378,796 915.70 Pomona Unified SD 2007 Ref Bonds 65,573,334 20.159 13,219,116 915.71 Pomona Unified SD 2008 Ref Bonds 33,900,000 20.159 6,833,998 915.72 Pomona Unified SD 2011 (QSCBS)4,030,000 20.159 812,419 915.73 Pomona Unified SD 2008 Series C 44,060,000 20.159 8,882,181 980.55 Walnut Valley Unified SD Series 1997 A 19,707,718 59.481 11,722,402 980.59 Walnut Valley Unified SD 2000 Series D 13,195,243 59.481 7,848,699 980.60 Walnut Valley Unified SD 2000 Series E 6,001,837 59.481 3,569,969 980.61 Walnut Valley Unified SD 2005 Ref Bds 10,885,000 59.481 6,474,537 980.62 Walnut Valley Unified SD 2007 Series A (M-S)27,915,000 59.481 16,604,198 980.63 Walnut Valley Unified SD 2007 Series A (M-Y)6,715,887 59.481 3,994,695 980.64 Walnut Valley Unified SD 2011 Refunding 13,190,000 59.481 7,845,566 980.65 Walnut Valley Unified SD 2007 Series B Meas S 19,996,838 59.481 11,894,353 980.66 Walnut Valley Unified SD 2007 Series B Meas Y 7,990,547 59.481 4,752,871 134,359,975 Grand Total Direct and Overlapping Debt:145,829,975$ 2010/11 Net Assessed Valuation: $ 7,193,712,566 Debt to Assessed Valuation Ratios: 2011 Total City Population: 55,819 Direct Debt 0.17%$205 Overlapping Debt 1.93%$2,407 Total Debt 2.10%$2,613 Note: (1)Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city. (2)The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city. Source: Hdl Coren & Cone U.S. Census Bureau City Finance Department CITY OF DIAMOND BAR, CALIFORNIA Direct and Overlapping Debt June 30, 2012 (unaudited) 123 THIS PAGE INTENTIONALLY LEFT BLANK 124 Fiscal Year 2021 2020 2019 2018 2017 Net assessed value 10,929,012,810$ 10,419,291,476$ 10,030,502,911$ 9,587,033,522$ 9,187,457,108$ Add back: Exemptions 90,417,003 93,257,612 90,713,106 78,363,662 62,484,967 Gross assessed value 11,019,429,813 10,512,549,088 10,121,216,017 9,665,397,184 9,249,942,075 Conversion percentage 25%25%25%25%25% Adjusted assessed valuation 2,754,857,453 2,628,137,272 2,530,304,004 2,416,349,296 2,312,485,519 Debt limit percentage 15%15%15%15%15% Debt limit 413,228,618 394,220,591 379,545,601 362,452,394 346,872,828 City Debts: Revenue bonds 8,315,000 8,315,000 8,775,000 9,215,000 9,635,000 Unamortized Bond Premium 130,845 130,845 144,971 159,097 173,223 Legal debt margin 404,782,773$ 385,774,746$ 370,625,630$ 353,078,297$ 337,064,605$ Fiscal Year 2016 2015 2014 2013 2012 Net assessed value 8,636,748,704$ 8,188,945,156$ 7,751,853,846$ 7,469,396,334$ 7,350,019,952$ Add back: Exemptions 85,146,082 83,189,280 83,574,453 78,856,697 74,296,191 Gross assessed value 8,721,894,786 8,272,134,436 7,835,428,299 7,548,253,031 7,424,316,143 Conversion percentage 25%25%25%25%25% Adjusted assessed valuation 2,180,473,697 2,068,033,609 1,958,857,075 1,887,063,258 1,856,079,036 Debt limit percentage 15%15%15%15%15% Debt limit 327,071,054 310,205,041 293,828,561 283,059,489 278,411,855 City Debts: Revenue bonds 10,035,000 10,420,000 10,785,000 11,135,000 11,470,000 Unamortized Bond Premium 187,349 201,475 215,601 229,727 243,853 Legal debt margin 316,848,705$ 299,583,566$ 282,827,960$ 271,694,762$ 266,698,002$ The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local govern- ment located within the state. Source: Section 43605 of the California Government Code Hdl Coren & Cone City Finance Department CITY OF DIAMOND BAR, CALIFORNIA Computation of Legal Debt Margin Last Ten Fiscal Years (unaudited) 125 General Information Date of Incorporation April 18, 1989 Form of Government Council-Manager Area 14.88 Square Miles Miles of Streets 132.3 Public Safety Police Protection Los Angeles County Sheriff Department Fire Protection Los Angeles County Fire Department Education School District Pomona Unified School District Schools 1 High School, 1 Middle School, & 4 Elementary Schools School District Walnut Valley Unified School District Schools 1 High School, 2 Middle Schools, & 4 Elementary Schools Population Distribution by Race (2020 US Census)Total Percent Asian 32,540.48 58.40% White 9,472.40 17.00% Hispanic or Latino 10,363.92 18.60% African American 2,005.92 3.60% Others 1,337.28 2.40% Single Family Residential Full Value Sales (01/01/2012-06/30/2020) * Year Full Value Sales Average Price Median Price Median % Chan 2012 789 484,681$ 417,500$ 2013 814 591,380 500,000 19.76% 2014 701 660,281 535,000 7.00% 2015 726 626,515 551,000 2.99% 2016 837 628,252 570,000 4.22% 2017 745 645,253 589,500 3.42% 2018 647 704,743 657,500 11.93% 2019 663 701,439 635,000 -3.42% 2020 250 (Jan-Jun 2020) 656,486 629,000 -0.94% 2021 391 788,473 755,000 11.85% * "Single Family Residential" includes both stand-alone homes and townhouses and condos with a common wall. Los Angeles County Recorder HdL Coren & Cone US Bureau of the Census. The official population census of the United States is conducted every ten years. Median Household Income were obtained from U.S. Census Bureau, 2017 American Community Survey 1-Year Estimates. (unaudited) THE CITY OF DIAMOND BAR DEMOGRAPHIC AND ECONOMIC STATISTICS Notes and Data Sources: $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $417,500 500,000 535,000 551,000 570,000 589,500 657,500 635,000 629,000 Median Price Median Price 126 Personal Income Median Household Unemploym Median Population (In Thousands)Income Rate Age 2011 55,819 1,846,158$ 33,074$ 83,454$ 8.8% 40.5 92.5%47.8% 2012 56,099 1,991,290 35,496 83,654 6.6% 40.6 92.6%48.8% 2013 56,400 1,984,772 35,191 84,180 5.4% 41.3 92.4%49.7% 2014 56,426 1,919,782 34,023 84,705 5.3% 40.9 92.0%48.4% 2015 57,081 1,943,144 34,041 85,505 4.3% 41.1 91.5%47.9% 2016 57,066 1,978,657 34,673 89,409 3.3% 42.0 92.1%50.9% 2017 57,460 1,953,402 33,995 94,630 3.8% 42.2 92.4%50.7% 2018 57,495 2,061,233 35,850 98,660 3.7% 42.6 92.8%52.1% 2019 57,177 2,127,028 37,200 101,862 3.6% 41.8 93.8%53.2% 2020 56,717 2,228,525 39,292 118,892 10.6% 42.6 94.2%54.9% Year Personal Income Notes and Data Sources: Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 Income, Age, and Education Data: ESRI -Demographic Estimates are based on the last available Census.Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey. Estimated Median Household Income - Nielsen Company. THE CITY OF DIAMOND BAR DEMOGRAPHIC AND ECONOMIC STATISTICS (unaudited) Calendar Per Capita % of Pop 25+ with High School Degree % of Pop 25+ with Bachelor's Degree 127 2020 2019 2018 2017 2016 Apparel Stores 5,713$ 8,224$ 7,855$ 2,008$ 2,347$ Food Stores 22,248 19,157 18,551 17,394 15,591 Eating and Drinking Places 49,416 65,901 63,944 64,421 59,696 Building Materials 1,476 1,602 2,847 2,929 2,434 Auto Dealers and Supplies 5,500 7,424 6,621 6,638 7,488 Service Stations 60,554 101,622 104,147 96,579 91,952 Other Retail Stores 50,744 62,534 64,496 62,549 62,465 All Other Outlets 270,896 269,187 251,795 256,509 252,700 Total 466,547$ 535,651$ 520,256$ 509,027$ 494,672$ CITY OF DIAMOND BAR, CALIFORNIA Last Ten Calendar Years (in thousands of dollars) Taxable Sales by Category Notes and Data Sources: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. State Board of Equalization, California Department of Taxes and Fees Administration, State Controllers Office, and The HdL Companies. 128 2015 2014 2013 2012 2011 2,104$ 1,925$ 1,602$ 905$ 724$ 12,478 11,004 10,474 10,189 11,577 56,895 54,397 52,948 50,636 48,949 2,115 1,619 1,919 2,584 2,811 7,649 7,607 7,150 6,395 6,021 104,369 112,494 120,373 125,495 119,738 61,002 68,019 69,109 68,157 62,952 208,389 98,327 95,571 89,151 92,733 455,002$ 355,393$ 359,146$ 353,512$ 345,505$ 129 Function 2021 2020 2019 2018 2017 2016 General government 22 29 27 27 27 25 Part-time*1.01 Community development 899899 Part-time*0.25 0 0 0 0 0 Public works 15 18 14 17 17 10 Part-time*1.15 Community services 0000014 Part-time*0000056 Parks & recreation 11 10 11 9 9 0 Part-time & Seasonal*24.68 52 51 65 50 0 Total 83.09 118 112 126 112 114 Function 2015 2014 2013 2012 2011 General government 25 24 24 23 24 Community development 88888 Public works 98899 Community services (full time)15 14 14 14 14 munity services (part time & seasonal)58 60 60 61 61 Total 114 114 114 115 116 Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Beginning In FY2017, part of the former Community Services Department, road maintenance and landscape maintenance, has been centralized in Public Works. * Part-time/Seasonal staff reported as Full-time Equivalent beginning FY 2020-21 Source: City Finance Department Fiscal Year Ended June 30, by Function/Program Full-time and Part-time City Government Employees CITY OF DIAMOND BAR, CALIFORNIA Fiscal Year Ended June 30, 130 2021 2020 2019 2018 2017 Police:(in fiscal year) (1) Physical arrests 483 564 653 493 636 Street Sweeping Parking Citation 2,846 4,450 5,256 5,367 5,289 Fire: (in fiscal year) (2) Number of incident calls 3,237 3,014 3,207 3,362 3,331 Inspections 988 941 1,151 1,403 1,336 Public works: (in fiscal year) (3) Street resurfacing (miles)1.1 16.5 12.3 17.2 14.4 Parks and recreation:(in fiscal year)(4) Number of recreation classes(5)450 1,547 2,461 2,461 2,338 Number of facility rentals 1,219 2,766 4,610 4,610 4,316 2016 2015 2014 2013 2012 Police: (1) Physical arrests 702 522 494 630 737 Street Sweeping Parking Citation 5,682 5,887 5,774 3,776 3,766 Fire: (2) Number of emergency calls 3,180 2,820 2,760 2,604 2,516 Inspections 1,667 1,413 1,434 1,477 1,287 Public works: (3) Street resurfacing (miles)19.3 17.0 12.5 8.3 9.2 Parks and recreation:(4) Number of recreation classes 2,546 2,591 2,623 2,082 2,096 Number of facility rentals 4,804 4,491 4,178 4,332 4,270 Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Dep East Regional Operation Bureau (3) City Public Works Department (4) City Community Services Department (5) Includes online classes Note: Indicators are not available for the general government function. Function Fiscal Year Ended June 30, Function Fiscal Year Ended June 30, CITY OF DIAMOND BAR, CALIFORNIA Operating Indicators by Function Last Ten Fiscal Years 131 2021 2020 2019 2018 2017 2016 Public safety (1) Police: Station 1 1 1 1 1 1 Patrol units (all shifts combined) 18 18 18 18 18 18 Fire stations (2) 3 3 3 3 3 3 Highways and streets (3) Streets (miles) 132.3 132.3 132.3 132.3 130.9 130.9 Streetlights 314 314 314 307 307 294 Traffic signals 76 76 76 76 76 74 Culture and recreation (4) Parks Acreage 79.4 79.4 79.4 79.4 72.6 67.9 Hiking Trails 4.5 4.5 4.5 4.5 4.5 4.0 Parks 171717171615 Public Tennis courts 8 8 8 8 8 8 Community centers 3 3 3 3 3 3 Golf Course (5) County golf course 1 1 1 1 1 1 Sewer (3) Sanitary sewers (miles) 161.38 161.38 161.38 161.38 161.38 161.21 Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Department, Division VIII Office (3) City Public Works Department (4) City Community Services Department (5)LA County Golf Course Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. No capital asset indicators are available for the general government function. Function Fiscal Year Ended June 30 Last Ten Fiscal Years Capital Asset Statistics by Function CITY OF DIAMOND BAR, CALIFORNIA 132 2015 2014 2013 2012 1111 18 18 18 18 3333 129.4 129.4 129.4 129.4 294 294 294 294 74 74 74 74 67.9 67.9 67.9 67.9 4.0 3.2 3.2 3.2 15 15 15 15 8888 3333 1111 161.21 161.21 161.21 158.4 133 City of Diamond Bar Finance Department 21810 Copley Drive, Diamond Bar, CA 91765 (909) 839-7050 | www.diamondbarca.gov