See sample below regarding fire flow and hydrant detail information needed.
BUILDING FIRE FLOW REQUIREMENTS – CFC TABLES B105.2 & B105.1(2)
INFORMATION BELOW IS A SAMPLE AND FOR REFERENCE ONLY
Table B105.1(2) – Building size = 129, 600 square feet
Construction type = Type IIA
FF = 5,250 gpm at 20 psi
Duration = 4 hours
Table B105.2 – Fire sprinkler allowance = - 50%
5,250 – 2,625 = 2,625 gpm
FF = 2,625 gpm @ 20 psi
Duration = 2 hours
Table CC105.1 – Approximate number of hydrants = 3
Average spacing = 400 feet + 25% allowable increase = 500 Maximum distance from street or frontage = 225 feet = 50% allowable increase = 337.5
20. The fire protection equipment shall be located within an interior room having an approved exterior access door or in an exterior enclosure attached to the building, specifically, for the purpose of housing such equipment.
21. Prior to building permit issuance, provide a fire department circulation plan using the City’s ladder truck and demonstrate clear turning movements into and out of the project. The final design of fire department access components shall be reviewed and approved by the Fire Marshal prior to installation. Please show how fire apparatus can position near the building on either side, with the ability to turn the apparatus around to leave the project site.
22. Fire Apparatus Access Roads shall be designed in accordance with provisions set forth in the California Fire Code Chapter 5 and Appendix D as amended by the City of American Canyon and the applicable Public Works Standard.
3972
23. Fire apparatus access roads shall have an unobstructed minimum width of 20 feet (curb to curb) and a minimum unobstructed vertical clearance of 13’ 6”. They shall have an all-weather paved surface capable of supporting a GVW of 71,000 pounds.
24. Access roads shall be completed with all-weather surfaces prior to the stockpiling of combustible materials or beginning combustible construction. Fire apparatus access shall be provided to within 150 feet of the most remote portions of all building from an approved exterior route. If this cannot be achieved fire apparatus turn-arounds will be needed.
25. Fire apparatus access roads shall not be obstructed in any manner, including the parking of vehicles.
Vertical traffic calming in the form of speed pumps, humps or dips are prohibited along fire access roads without prior approval of the fire Code Official. The minimum width and clearances established in Section 503.2.1 shall be maintained at all times.
26. When required by the Fire Chief, fire apparatus access roads shall be designated as Fire Lanes and appropriate signs and/or markings installed in accordance with the California Vehicle Code and approved City standards.
27. Where applicable, improvement plan submittals for permit shall include locations of fire lane red curbing and fire lane signage. Please refer to and include City Public Works Standard FP-2A & 2B with plan submittals for permitting.
28. The City of American Canyon requires that a fire hydrant be in service within 250 feet of the furthest point of construction prior to the stockpiling of combustible materials for the beginning of construction.
29. Fire Department Connections (FDC) shall be located not more than 100 ft. from the nearest fire hydrant.
30. Improvement Plans submitted for permit shall include City of American Canyon “Underground” standards, detail drawings and the applicable City of American Canyon Public Works Standard detail (W-7A, B, C or D) for Fire Service double detector check installations. Also, a separate set of plans shall be submitted detailing all related underground Fire utilities and appurtenances including but not limited to; All underground piping, type, sizes, depth of burial, fittings, thrust blocks, risers, pumps, hydrants, FDC’s, etc.
31. System Protection Area Limitations NFPA 13 – 8.2.1 Maximum floor area on any one floor to be protected by sprinklers supplied by any one sprinkler system riser or combined system riser shall be as follows:
1. Light Hazard – 52,000 sf – per riser
2. Ordinary Hazard - 52,000 sf – per riser
3. *Extra Hazard – Hydraulically calculated - 40,000 sf – per riser
4. Storage – High-piled storage (as defined in 3.9.1.16) and storage covered by other NFPA standards – 40,000 sf – per riser
Public Works
General Conditions of Approval
3973
32. The Applicant shall be responsible for all City plan check and inspection costs. The Applicant shall establish a Developer Deposit Account with the City upon the initiation of plan check services. The amount of the initial deposit shall be determined by the City Engineer. Additional funds may be required based upon actual costs.
33. All improvements shall be designed in accordance with the American Canyon Municipal Code (ACMC), City of American Canyon Engineering Standard Plans and Specifications for Public Improvements (City Standards), except as specifically noted otherwise in these conditions.
34. All new utilities to serve the project, shall be placed underground. Exceptions may be allowed for surface mounted transformers, pedestal mounted terminal boxes and meter cabinets.
35. Unless otherwise explicitly permitted, all existing wells, septic tanks and/or underground fuel storage tanks shall be abandoned under permit and inspection of Napa County Department of Environmental Services or other designated agency. If there are none, the project engineer shall provide a letter describing the scope of the search done to make this determination.
36. A detailed Soils Investigation/Geotechnical Report shall be prepared and submitted for review. The report shall address, at a minimum, potential for liquefaction, R-values, expansive soils and seismic risk. The improvement plans shall incorporate all design and construction criteria recommended in the Geotechnical Report.
37. A drainage report prepared by a California Registered Civil Engineer shall be submitted for review with the initial submittal of the Improvement Plans. The report shall include detailed hydrologic and hydraulic calculations to support the design and sizing of all public and private drainage facilities including storm drains and detention facilities. The report shall address existing downstream storm drain facilities and hydraulic conditions which may impact the design of proposed facilities and improvements.
38. A final detailed post-construction Stormwater Control Plan (SWCP) that identifies and sizes all permanent post-construction stormwater treatment BMPs shall be prepared and submitted for review and approval. The SCWP shall be prepared in accordance with the latest edition of the Bay Area Stormwater Management Agencies Association (BASMAA) Post-Construction Manual and the requirements of the State Water Resources Control Board Phase II Municipal Separate Storm Water System (MS4) General Permit (Order 2013-0001 DWQ). It is the City’s discretion whether to accept alternative treatment facilities other than bioretention.
39. A Post Construction Stormwater Operations and Maintenance Plan that includes a plan sheet showing all storm drain and water quality infrastructure that is to be maintained, along with detailed instructions and schedules for the ongoing maintenance and operation of all post-construction stormwater BMPs shall be submitted for review and approval by the City Engineer. Once approved, the property owner(s) shall enter into an agreement with the City that provides the terms, conditions, and security associated with the ongoing requirements of the post-construction Stormwater Best Management Practices.
40. A Final Map, as defined in the Subdivision Map Act, shall be prepared by a licensed surveyor or civil engineer. The Final Map shall show all parcels, rights-of-way, and easement(s), and shall be submitted to the City Engineer for review. The Final Map shall be in substantial conformance with the approved Tentative Map and all applicable conditions of approval. The Final Map is not valid until it has been approved by the City and recorded. Closure calculations shall be provided at the 3974
time of initial Final Map submittal. All calculated points within the map shall be based upon one common set of coordinates. All information shown on the Final Map shall be directly verifiable by information shown on the closure calculation printout. The point(s) of beginning shall be clearly defined. All lot acreages shall be shown on the Final Map and shall be verifiable from information shown on the closure calculation printout. A current title report (within past 30 days) shall be submitted at the time of initial Final Map submittal.
41. The Applicant shall secure all necessary rights-of-way and public and private easements for both onsite and offsite improvements. The applicant shall prepare all necessary legal descriptions and deeds.
42. To the extent any offsite public improvements require the acquisition of property not currently owned by the Applicant or the City, the Applicant shall first make a good-faith effort to acquire the necessary property rights, however if the Applicant makes such an effort and is unable to acquire such rights, then the Applicant may request the City acquire the necessary property rights through the exercise of eminent domain provided that the Applicant enters first into an agreement with the City to pay for all costs incurred by the City to acquire such rights and if the City does not acquire the rights necessary to allow the offsite public improvements to be completed by the Applicant within statutory timeline provided by law, then the Applicant shall be relieved of the obligation to construct those off-site improvements only to the extent they require property not currently owned by the Applicant or the City. The Applicant shall make a good-faith effort to identify and acquire the necessary property rights at the earliest opportunity.
43. The Applicant shall submit site Improvement Plans, prepared by a registered Civil Engineer, for review and approval of the City’s Public Works Department. Please be aware that this is separate submittal from the building permit application. The final plan set shall include all civil, landscape and joint trench drawings under a single cover sheet. No final grading or other construction shall be performed until the Improvement Plans have been approved. The Applicant shall not begin clearing, grubbing, or rough grading at the site prior to approval of the Improvement Plans, unless explicitly approved by the City of American Canyon through the standard grading and utilities only permit process. An Encroachment Permit is required for any work within City right of way. Encroachment Permits will not be issued prior to the approval of the Improvement Plans.
44. All public water service laterals or services (domestic, recycled and fire water) shall include approved backflow prevention devices.
45. Cathodic protection shall be provided for all water valves, fittings, hydrants, meters, backflow devices and other metal appurtenances, regardless of the findings of any soils corrosivity analysis.
46. The Applicant shall keep adjoining public and private streets free and clean of project dirt, mud, materials, and debris during the construction period in accordance with SWPPP using appropriate BMPs and as is found necessary by the City Engineer.
47. If any hazardous material is encountered during the construction of this project, all work shall be immediately stopped and the Fire Department, Napa County Department of Environmental Services or other designated agency, and the City Inspector shall be notified immediately. Work shall not proceed until clearance has been issued by all of these agencies.
48. Prior to final preparation of the subgrade and placement of base materials, all underground utilities shall be installed, and service connections stubbed out behind the sidewalk. Public utilities, Cable TV, 3975
sanitary sewers, and water lines shall be installed in a manner that will not disturb the street pavement, curb, gutter and sidewalk, when future service connections or extensions are made.
49. Where soil or geologic conditions encountered in grading operations are different from that anticipated in the soil and/or geologic investigation report, or where such conditions warrant changes to the recommendations contained in the original soil investigation, a revised soil or geologic report shall be submitted for approval by the City Engineer. Additionally, if field conditions warrant installation of any subdrains, the location, size and construction details must be provided to the City for review and approval prior to construction.
50. All new fire hydrants shall be covered with burlap sacks until the hydrants have been tested and found to be in conformance with City flow requirements. No storage of combustible materials or construction of building shall be permitted until all hydrants meet City flow requirements.
51. Prior to placing the final lift of asphalt, all public storm drains and sanitary sewer lines shall be video inspected at the Applicant's expense. All video media (CD, DVD, or portable hard drive) shall be submitted to the City. If any inadequacies are found, they shall be repaired prior to the placement of the final lift of asphalt.
52. All streets, curbs, gutters, sidewalks or other public facilities damaged in the course of construction associated with this Project shall be the responsibility of the Applicant and shall be repaired to the satisfaction of the City at the Applicant's expense.
53. After all of the new underground utilities within existing public streets have been installed, the entire affected areas shall be milled and repaved to present a neat finished pavement area. Multiple trench patches are not acceptable.
54. All construction stormwater pollution prevention best management practices (BMP's) shall be installed as the first order of work and in accordance with the State Water Resources Control Board's General Construction Permit for Stormwater Discharges Associated with Construction and Land Disturbance Activities (Order 2009-0009-DWQ, as amended), the Applicant's Storm Water Pollution Prevention Plan (SWPPP), and the City’s Erosion and Sediment control Plan in accordance with the City’s MS4 Permit. All stormwater BMP's shall be maintained to the satisfaction of the Qualified SWPPP Developer (QSD), Qualified SWPPP Practitioner (QSP), and the City Engineer.
55. With the exception of water used for loading and testing of potable water lines, all construction water used for the project shall be obtained from a source other than American Canyon potable water sources. The Applicant shall provide verification that an outside source of construction water, e.g., recycled water, has been established and will be available for the duration of the project construction.
56. The development shall comply with the City’s Zero Water Footprint policy.
57. All landscaping shall be designed to use recycled water for irrigation. Recycled water landscaping shall be designed to comply with California Code of Regulations Title 22 and shall include design details to prevent runoff of recycled water. The irrigation system shall include an ET/SMART controller.
58. All buildings shall be dual plumbed to use recycled water for non-potable uses.
Public Works Special Conditions of Approval
3976
59. The Applicant shall submit Improvement Plans prepared by a registered Civil Engineer (Engineer of Record) in substantial conformance with the preliminary civil plans titled “Giovannoni Logistics Center East Tentative Parcel Map” prepared by CBG Civil Engineers dated September 17, 2021, except as modified by these conditions.
60. Improvement Plans and Final Map shall be tied to the State of California coordinate system.
61. The Applicant shall construct all of the on-site private streets, water, recycled water, sewer, storm drainage and storm quality “Private Improvements” generally shown on the Preliminary Plans and more specifically described below. All private street, water, recycled watersewer, storm drainage and stormwater quality improvements shall be designed in accordance with the City of American Canyon Engineering Standard Plans and Specifications for Public Improvements (City Standards), except as specifically noted otherwise in these conditions.
a. Storm Drain Facilities:
Construct private on-site drainage facilities, detention facilities, and other appurtenances to collect and convey all surface drainage to an approved private storm drain facility or outfall.
Onsite drainage facilities shall provide for the positive drainage of all adjacent upstream or upgrade properties to prevent ponding. Existing run-on from adjacent properties shall not be obstructed and shall be conveyed onsite. Off-site peak storm water discharge shall not exceed 90% of the undeveloped peak flow from the 24-hour, 100-year event. The storm drains and detention facilities shall be substantially consistent with the Preliminary Plans. However, the sizing of all storm drains and detention facilities shall be determined by the approved final drainage report.
b. Stormwater Quality Facilities:
Permanent on-site private post-construction stormwater treatment BMPs shall be designed and constructed in accordance with the approved final SWCP. c. Recycled Water Services:
Separate recycled water services shall be provided for domestic non-potable uses and irrigation uses.
62. Per the Subdivision Improvement and Reimbursement Agreement between the City of American Canyon and DWF IV NLP II, LLC, Napa County Official Record 2018-0024204, the Applicant shall reimburse the City its fair share cost for the improvement of South Kelly Road from its intersection with Devlin Road up to intersection with Highway 29. The fair share cost, based on the project’s proportional share of net new trips is 12% of the total cost of the required roadway improvements.
The total cost of the roadway improvement is $1,206,450.75. Therefore, the applicant’s fair share obligation is $144,774.09.
63. Per the Subdivision Improvement and Reimbursement Agreement between the City of American Canyon and DWF IV NLP II, LLC, Napa County Official Record 2018-0024204, the Applicant shall reimburse the City its fair share cost for the construction of the Permanent Sewer Solution, which consists of new offsite public gravity sewer, pump station and force main which replaced the existing Green Island Pump Station. The fair share cost, based on the project’s sewer flow is 12% of the total cost of the required sewer improvements. The total cost of the sewer improvement is $6,710,227.41.
Therefore, the applicant’s fair share obligation is $805,227.29.
64. Prior to SUBMITTAL OF THE IMPROVEMENT PLANS, the Applicant shall:
a. Submit the City's "Improvement Plan Checklist".
3977
b. Pay an initial cash deposit for City plan check services in amount to be determined by the City prior to the time of submittal. The Project engineer shall contact City staff to discuss submittal details to determine initial deposit amount.
c. Provide the following:
(1) Public Street Repair Plan
(2) Utility Plan and Joint Trench Plan
(3) Construction Storm Water Pollution Prevention Plan (SWPPP) and a City Erosion and Sediment Control Plan
(4) Drainage Report
(5) Post-Construction Stormwater Control Plan (SWCP)
(6) Geotechnical Report
(7) Construction Traffic Control Plan.
(8) Traffic Impact Study
(9) Application for Water and Sewer Service
65. Pothole and physically determine (by way of a survey performed by the Engineer of record) the actual horizontal location and vertical depth of all existing underground utilities throughout the proposed area of work and provide the design of all new utility installations required to serve the project including a schedule for implementation of such work as to prevent disrupting of utility service to adjacent properties.
66. Prior to APPROVAL OF THE IMPROVEMENT PLANS, the Applicant shall:
a. Merge the two existing parcels (APNs 057-130-034 and 057-130-036) into a single parcel through the recordation of a lot merger or lot line adjustment. b. Provide written acknowledgment by the Geotechnical Engineer of Record that the Plans incorporate all design and construction criteria specified in the Geotechnical Report. c. Furnish proof of the acquisition of all rights of entry and/or temporary and permanent easements necessary to construct the project and the location of all such rights on the Plans. d. Furnish proof that all permits that may be required by the California Department of Fish & Wildlife, State and Regional Water Quality Control Board, US Army Corps of Engineers and any other regulatory agencies with jurisdiction over the proposed construction have been obtained. e. Fill out and submit the City’s Erosion and Sediment Control Plan (ESCP) Template. Applicant may refer to a SWPPP, as appropriate, by referencing page number within the SWPPP that addresses the requirements of the ESCP.
f. Submit a copy of the Notice of Intent and Wastewater Discharge Identification Number (WDID#) for coverage under the State Water Resources Control Board's General Construction Permit for Stormwater Discharges Associated with Construction and Land Disturbance Activities (Order 2009-0009-DWQ).
67. Prior to RECORDATION OF THE FINAL MAP, the Applicant shall:
a. Construct all of the Private Improvements to the satisfaction of the City. Alternatively, the Applicant may enter into a Subdivision Improvement Agreement with the City agreeing to complete all of the Private Improvements prior to Occupancy of the first unit. Such an Agreement will require the Applicant to provide bonds, proof of workers compensation insurance, and general liability insurance in the forms and amounts as deemed satisfactory to the City.
3978
b. Establish a Shared Maintenance Agreement between the owners of each parcel for the long term and ongoing maintenance and operation of all shared private improvements.
Specifically, the parcel owners shall be responsible for the ongoing maintenance and operation of all onsite stormwater quality facilities and shared storm drains. The Shared Maintenance Agreement shall be prepared to run with the land of each parcel. The Shared Maintenance Agreement shall be submitted to the City for review and approval prior to recordation.
c. Generally, in substantial conformance with that which is shown on the approved Tentative Map, convey all easements and dedications, public and private, for the construction, use and/or maintenance of roads or other access, drainage facilities, utilities and postconstruction storm water management facilities on the Final Map. All dedications to the City shall be Irrevocable Offers of Dedication. Specific conveyances include:
i. Private reciprocal easements in favor of all parcels for all shared stormwater treatment facilities, shared storm drains, and for lot-to-lot surface stormwater runoff.
d. Furnish proof of the payment of the mapping service fee as required by Napa County Board of Supervisors Resolution No. 92-119.
68. Prior to COMMENCEMENT OF CONSTRUCTION ACTIVITIES, the Applicant shall:
a. Pay off all current account balances with the City of American Canyon. b. Pay an inspection fee in amount to be determined at the time of commencement for the City's inspection of the Public Improvements.
c. Conduct a pre-construction meeting with representatives of the City whereby the Applicant, the Legally Responsible Party (LRP), Qualified SWPPP Practitioner (QSP), Qualified SWPPP Developer (QSD), and/or the Contractor provides the following:
i. Six (6) full-size bond copies of the approved Improvement Plans for the City's use. ii. One (1) jobsite copy of the latest edition of the City Standards for the Contractor use. iii. One (1) jobsite copy of the SWPPP for use by the LRP, QSP, QSD, and Contractor. iv. Electronic copies of Improvement Plans and SWPPP.
69. Prior to APPROVAL OF A BUILDING PERMIT, the Applicant shall:
Pay all account balances and current City and American Canyon Fire District fees (Mitigation & Capacity) based on the rates in effect at the time of permit issuance. These fees include but may not be limited to the following: Traffic Mitigation, General Plan Update, Civic Facilities, Fire District, Water Capacity, Wastewater Capacity, Zero Water Footprint Mitigation and Affordable Housing Nexus.
70. A. Prior to issuance of the first building permit, the Applicant shall enter into a Recorded a Transportation Demand Management (TDM) Program Agreement (“TDM Agreement”) that ensures the cumulative Project trip generation does not exceed the Giovannoni Logistics Center Final EIR (SCH# 3979
2021010104) Trip Generation assumptions. The TDM Agreement shall encompass the entire Giovannoni Logistics Center Project.
B. The TDM Agreement shall include a financial guarantee satisfactory to the City. The City shall deem the TDM program to be effective if the monitoring results indicate that AM peak-hour volumes are no more than 240 vehicles and PM peak-hour volumes are no more than 264 vehicles.
C. The TDM program shall be implemented at the applicant’s cost, with no cost to the City, regardless of the eventual mix of uses and shall at a minimum include a permanent vehicle counting station at each public access point. The TDM program shall include a requirement to start and end workday shifts during off-peak hours (i.e., not between 7:00 a.m. to 9:00 a.m. or 3:00 p.m. to 6:00 p.m.).
In addition to requiring off-peak work day shift changes, additional examples of measures that may be considered as part of an effective TDM program include but are not limited to the following:
• Implement shuttle service to key employment centers or park-and-ride lots in the area for those employees whose workday shift start during peak hours. • Car-share program
• Shuttles to regional transit
• Transit subsidies
• Carpool/vanpool subsidies
• Employer-owned/sponsored vanpools
• Flex-time and telecommute programs
• Use of rail to transport employees and/or the delivery of goods D. The Applicant shall retain a transportation planning/engineering consultant to analyze the effectiveness of the TDM program in a written report. The TDM Report will include data collected from the permanent vehicle counting station and a determination of employee commute methods, which shall be informed by surveying all employees working at the site. The TDM Report shall be submitted to the City on a periodic on-going basis and it shall form the basis of on-going determinations by the City as to the effectiveness of the TDM program. So long as the City deems the TDM program effective (i.e. when monitoring results indicate that AM peak-hour volumes are no more than 240 vehicles and PM peak-hour volumes are no more than 264 vehicles). At any time the City determines the Project exceeds the Giovannoni Logistics Center Final EIR (SCH# 2021010104) Trip Generation assumptions, the additional traffic impact shall be mitigated by Paragraph B.
E. If at any point the City determines the TDM program established as part of Paragraph A through D is not effective to reduce peak-hour traffic to within the TDM thresholds (240 vehicles during the AM peak hour and 264 vehicles during the PM peak hour), the Applicant shall pay an additional amount for each and every peak-hour trip that is recorded by the counting device that exceeds the TDM threshold, equal to the latest adopted Traffic Impact Fee (“TIF”) program in effect at the time. The “on-going TIF” paid pursuant to this condition of approval is in addition to the “one-time TIF” paid at the time of issuance of the first building permit.
71. Prior to OCCUPANCY OF THE BUILDING, the Applicant shall:
a. Restore all adjacent off-site road surfaces to pre-project conditions. b. Submit a certification by the Geotechnical Engineer of Record that all the work has been completed in substantial conformance with the recommendations in Soils Investigation/Geotechnical Report.
3980
c. Provide a mylar and digital copy of the Improvement Plans that include all as-built or field changes, in digital (.pdf) and AutoCAD (.dwg) format, compatible with the City's current version, and tied to the City's coordinate system.
d. Provide a letter stating that all of the Developer’s Conditions of Approval have been met. e. Provide a letter from the Civil Engineer of Record certifying that all the site improvements were constructed and inspected in substantial conformance with the approved plans and City Standards.
f. Enter and record a post-construction Stormwater Operations and Maintenance Agreement with the City.
Mitigation Measures
72. MM AES-3: Prior to issuance of building permits for the proposed project, the project applicant shall prepare and submit a photometric plan to the City of American Canyon for review and approval which demonstrates that all exterior light fixtures would be directed downward or employ full cut-off fixtures to minimize light spillage and avoid interference with aviation operations at the Napa County Airport. The approved plan shall be incorporated into the proposed project.
73. MM AIR-2a: The following Best Management Practices (BMPs), as recommended by the Bay Area Air Quality Management District (BAAQMD), shall be included in the design of the project and implemented during construction:
• All active construction areas shall be watered at least two times per day. • All exposed non-paved surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and access roads) shall be watered at least three times per day and/or non-toxic soil stabilizers shall be applied to exposed non-paved surfaces.
• All haul trucks transporting soil, sand, or other loose material off-site shall be covered and/or shall maintain at least 2 feet of freeboard.
• All visible mud or dirt tracked out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day. The use of dry power sweeping is prohibited. • All vehicle speeds on unpaved roads shall be limited to 15 miles per hour. All roadways, driveways, and sidewalks to be paved shall be completed as soon as possible. Building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. • Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to 5 minutes (as required by the California Airborne Toxics Control Measure (ATCM) Title 13, Section 2485 of California Code of Regulations). Clear signage regarding idling restrictions shall be provided for construction workers at all access points. • All construction equipment shall be maintained and properly tuned in accordance with manufacturer’s specifications. All equipment shall be checked by a certified mechanic and determined to be running in proper condition prior to operation. • The prime construction contractor shall post a publicly visible sign with the telephone number and person to contact regarding dust complaints. The City and the construction contractor shall take corrective action within 48 hours. The BAAQMD’s phone number shall also be visible to ensure compliance with applicable regulations.
3981
74. MM AIR-2b: Prior to the issuance of grading or building permits, the project applicant shall provide the City with documentation demonstrating the use of “Low-VOC” architectural coatings during the proposed project's construction. “Low-VOC” architectural coatings used during project construction shall not exceed 50 grams of reactive organic gases (ROG) or volatile organic compounds (VOC) per liter of product.
75. MM AIR-2c: Prior to issuing any certificate of occupancy for the proposed project, the project applicant shall provide the City with documentation demonstrating the use of “Low-VOC” architectural coatings and electric landscaping equipment during the operation of the proposed project. “Low-VOC” architectural coatings used during project operation shall not exceed 10 grams of reactive organic gases (ROG) or volatile organic compounds (VOC) per liter of product. Landscaping equipment referred to in this requirement shall include lawnmowers, leaf blowers, and chainsaws.
76. MM AIR-2d: Prior to issuing the certificate of occupancy for the proposed project, the project applicant shall provide the City with documentation demonstrating the use of a truck fleet that meets or exceeds model year 2014 for all heavy- duty trucks during operation of the proposed project. If the project applicant does not own the truck fleet that would be used during operation of the proposed project, the project applicant shall provide the City with documentation from the truck fleet owner or operator demonstrating that trucks utilized for operation of the proposed project will meet or exceed model year 2014. If any change occurs where a new truck fleet is utilized during operation of the proposed project, the project applicant shall provide the City with documentation demonstrating that the new truck fleet meets or exceeds this requirement.
To monitor and ensure that trucks that meet a model year of 2014 or newer are used for the proposed project, the fleet operator shall maintain records of all trucks and equipment associated with the proposed project’s operation and make these records available to the City upon request.
Alternatively, the City may require periodic reporting and provision of written records by operators and conduct regular inspections of the records to the maximum extent feasible and practicable.
77. MM AIR-2e: Prior to the issuance of the certificate of occupancy for each building with dock doors, signage shall be posted identifying idling restrictions and contact information to report violations to the building manager.
78. MM AIR-2f: Prior to the issuance of the certificate of occupancy for each building with a separate end user, the City shall confirm that the end user has prepared a Transportation Demand Management Plan (TDM Plan). The TDM Plan shall be prepared by a qualified transportation consultant and identify strategies to reduce single-occupant vehicle trips. Examples of TDM strategies may include but are not limited to:
• Ridesharing/Ride Matching
• Vanpools
• Transit subsidies
• Preferential parking for rideshare or vanpool vehicles • Employee lockers
• Secure bicycle parking
• Employee locker rooms
• Provide TDM information in employee breakroom
79. MM AIR-2g: Prior to the issuance of the certificate of occupancy, as a part of future lease agreements, the project proponent shall provide all future tenants at the project site information on available California Air Resources Board (ARB) and Bay Area Air Quality Management District (BAAQMD) 3982
incentive programs, such as the Carl Moyer Program and the Voucher Incentive Program, that support upgrading truck fleets to clean air technology equipment.
80. MM BIO-1a: Pre-construction surveys for Swainson’s hawk shall be conducted in the project site vicinity prior to initiation of project construction activities and each year following initiation of construction if project activities are delayed or discontinued for 7 or more days prior to the first required survey period (March 20 to April 5), and are scheduled to recommence construction activities during the second survey period but before August 1. These pre-construction surveys shall include investigation of all potential nesting trees within a half-mile radius around all project activities and shall be completed for at least two survey periods immediately prior to commencement of project construction. Surveys shall be conducted in accordance with CDFW’s “Recommended timing and methodology for Swainson’s Hawk Nesting Surveys in California’s Central Valley” (CDFW 2000) to maximize the potential for locating nesting Swainson’s hawk and reduce the potential for nest failures due to project activities and/or disturbances.
If no nesting Swainson’s hawk are found during the first or second required survey period starting March 20 and extending to April 20, then project construction may commence. If during the third surveys (June 10 to July 30) Swainson’s hawk are found to be nesting in the project vicinity and construction has commenced, it shall be assumed the Swainson’s hawk commenced nesting and thus the Swainson’s hawk are habituated to the ambient level of noise and disturbance emanating from the project site.
If Swainson’s hawk are found to be nesting within 0.25 mile of the project site, a non-disturbance buffer shall be established to keep all construction activities a minimum of 0.25 mile from the nest site. The CDFW shall be consulted regarding the adequacy of the buffer established by the qualified Raptor Biologist. At that time the necessity for acquiring a Fish and Game Section 2081 Incidental Take Permit (ITP) authorization would be determined. An ITP authorization shall be required if there were a valid concern the project activities would result in the “take” of an adult Swainson’s hawk, eggs, or nestlings.
81. Surveys shall be conducted by a qualified Raptor Biologist with at least a minimum of a 4- year college degree in wildlife biology or related environmental science, familiarity with Swainson’s hawk and its local ecology, and 2 years of experience surveying for and detecting Swainson’s hawk pursuant to “Recommended timing and methodology for Swainson’s Hawk Nesting Surveys in California’s Central Valley” survey protocol. No disturbance such as construction or earthmoving activity shall occur within the established buffer zone until it is determined by a qualified Raptor Biologist that the young have fledged or that the nesting cycle is complete based on monitoring of the active nest by a qualified Biologist.
82. MM BIO-1b: No more than 30 days prior to the first ground disturbance activity, pre-construction golden eagle nesting surveys shall be conducted in the project vicinity by a qualified Raptor Biologist.
The qualified Raptor Biologist shall have a minimum of a 4- year college degree in wildlife biology or related environmental science, and at least 2 years of experience surveying for and detecting nesting golden eagles and its local ecology. Preconstruction surveys shall include investigation of all potential nesting trees within a survey area determined by the qualified Raptor Biologist, but no less than a 0.5- mile radius around all project activities. If active golden eagle nests are identified within any trees within the survey areas a 1.0-mile radius of the project site, a qualified Raptor Biologist shall establish a protection buffer of approximately 1.0 mile that is adequate to ensure noise or activity from the proposed project would not cause nest disturbance of young or adult bird mortality. Buffer zones may vary in size as some golden eagles are more acclimated to disturbance than others. Size of buffer zone 3983
may be modified by the qualified Raptor Biologist considering the type of construction activity that may occur and the behavioral factors and extent that golden eagle may have acclimated to disturbance. No construction or earthmoving activity shall occur within the established buffer zone until it is determined by a qualified Raptor Biologist that the young golden eagles have fledged or that the nesting cycle is complete based on monitoring of the active nest by a qualified Biologist.
83. MM BIO-1c: Prior to ground disturbance, a pre-construction nesting survey shall be conducted for northern harrier and short-eared owl by a qualified Raptor Biologist if construction is scheduled during the nesting season (February 1 through September 1). The qualified Raptor Biologist shall have at least 2 years of experience surveying for and detecting nesting northern harrier and short-eared owl. To determine whether northern harrier or short-eared owl is nesting on-site, a qualified Raptor Biologist(s) shall conduct walking transects through the project site grassland habitat searching for nests and minimum 500-foot radius from the project site. Where the survey area encroaches onto private property not accessible to the public (e.g., fenced in commercial property, residential backyard, etc., the qualified Biologist shall either contact the property owner for permission to physically access the property or conduct a visual survey of adjacent areas by scanning with binoculars or a spotting scope. An active northern harrier or short-eared owl nest must be protected by implementing a minimum 500-foot radius buffer zone around the nest marked with orange construction fencing. If an active nest is located outside of the project site, the buffer shall be extended onto the project site and demarcated where it intersects the project site. Size of buffer zone could be modified increased considering the type of construction activity that may occur, physical barriers between the construction site and active nest, and the behavioral factors and extent that northern harrier or short-eared owl may have acclimated to disturbance. No construction or earthmoving activity shall occur within the established buffer zone until it is determined by a qualified Raptor Biologist that the young have fledged or that the nesting cycle is otherwise determined to be complete based on monitoring of the active nest by a qualified Raptor Biologist.
84. MM BIO-1d: Prior to any ground disturbance, pre- construction surveys for burrowing owl shall be conducted within a minimum of 150 meters of the project site. Where the survey area encroaches onto private property not accessible to the public (e.g., fenced in commercial property, residential backyard, etc.), the qualified Biologist shall either contact the property owner for permission to physically access the property or conduct a visual survey of adjacent areas by scanning with binoculars or a spotting scope. The pre- construction surveys shall be conducted within 2 weeks prior to the onset of any ground-disturbing activities. Surveys shall be conducted by a qualified Biologist following California Department of Fish and Wildlife (CDFW) 2012 staff report survey methods and Biologist qualifications to establish the status of burrowing owl on the project site. a. If burrowing owl are found to occupy the project site during the nonbreeding season (September 1 to January 31), occupied burrows shall be avoided by establishing a no- disturbance buffer zone a minimum of 100 feet around the burrow. Buffers may be adjusted to address site-specific conditions using the impact assessment approach described in the CDFW 2012 staff report. If a qualified Raptor Biologist determines the location of an occupied burrow/s may be impacted even with a 100-foot buffer, or the burrow(s) are in a location(s) on the project site where a buffer cannot be established without preventing the proposed project from moving forward, then a passive relocation effort may be instituted to relocate the individual(s) out of harm’s way pursuant to a Burrowing Owl Exclusion Plan prepared in accordance with the CDFW 2012 staff report.
b. If burrowing owl are found to be present during the breeding season (February 1 to August 31), the proposed project ground-disturbing activities shall follow the CDFW 2012 staff report 3984
recommended avoidance protocol whereby occupied burrows shall be avoided with a nodisturbance buffer. c. If burrowing owls are ultimately found on the site and burrow eviction/ relocation of burrowing owls during the non-nesting season is a selected strategy to move forward with the project without direct impacts to burrowing owl individuals, the applicant shall coordinate this effort with CDFW and provide habitat mitigation consistent with the 2012 CDFW Staff Report on burrowing owl.
85. MM BIO-2: Prior to issuance of grading permits. To offset the loss of the 0.496 acre of seasonal wetland impacts from Phase 1, and 2.57 acres of seasonal wetlands and 1.13 acres of vernal pools from Phase 2, and to ensure there is no-net loss of wetland area, the applicant shall establish/create
0.992 acre of palustrine emergent wetlands (2:1 ratio) for Phase 1 concurrent with project construction, and 2.57 acres of seasonal wetlands (1:1 ratio) and 1.13 acres of vernal pool wetlands (1:1 ratio) for Phase 2 at least 1 year prior to the start of Phase 2 construction, on the 45-acre Wetland Preserve. The established/created wetlands will be constructed a minimum of 20-feet from the Napa Logistics Park sewer and recycled water pipeline easement or unpaved access road associated with the easement. The established/created wetlands shall be monitored for a minimum of 5 years to ensure the wetlands meet the USACE’s and RWQCB’s definition of a wetland.
86. MM BIO-3a: Prior to issuance of the Phase 1 grading permit, the project applicant shall apply for and obtain a Nationwide Permit from the San Francisco District of the United States Army Corps of Engineers (USACE) for discharge within 0.004 acre of wetlands/waters of the United States under Clean Water Act Section 404 jurisdiction. For the USACE permit to be valid, the applicant shall apply for and obtain the accompanying Section 401 Water Quality Certification from the San Francisco Bay Regional Water Quality Control Board (San Francisco Bay RWQCB). The applicant shall apply for and obtain a separate Waiver of Waste Discharge Requirements from the San Francisco Bay RWQCB for impacts to 0.496 acre of wetlands/waters of the State. To offset the loss of 0.496 acre of permanent wetland impacts and to ensure there is no- net loss of wetland area, the applicant shall establish/create 0.992 acre of wetlands (2:1 ratio), prior to or concurrent with the start of construction, on the 45-acre Wetland Preserve. The established/created wetlands shall be monitored for a minimum of 5 years to ensure the wetlands meet the USACE’s and RWQCB’s definition of a wetland. The applicant shall implement the terms of the approved permit(s).
87. MM BIO-3c: Prior to issuance of the Phase 1 grading permit, a Wetland Mitigation and Monitoring Plan shall be prepared and submitted to the San Francisco Bay Regional Water Quality Control Board (San Francisco Bay RWQCB) for review as part of the process for obtaining a permit from the agency.
The Wetland Mitigation and Monitoring Plan shall address the loss of 0.496 acre of wetlands impact due to Phase 1 of the proposed project as well as the potential loss of approximately 3.7 acres of wetlands that as part of Phase 2.
The Wetland Mitigation and Monitoring Plan shall include in irrevocable instrument (e.g., deed restriction or conservation easements) that shall restrict use of both the 0.992 acre of created wetlands for Phase 1 as well as approximately 3.7 acres of additional wetlands created for Phase 2.
The Wetland Mitigation and Monitoring Plan shall also include a long-term endowment that would be fully funded by the proposed project to manage approximately 45-acre open space preserve and created wetlands in perpetuity. If additional wetland mitigation lands are required to compensate for wetland impacts associated with Phase 2, wetlands shall be established/created at a minimum 1:1 ratio (1 acre established/created for every acre permanently impacted) on appropriate mitigation land, approved by the RWQCB and United States Army Corps of Engineers (USACE), within the Phase 3985
2 project site’s Hydraulic Unit Code (HUC) 10 watershed. The established/created wetlands shall be monitored for a minimum of 5 years to ensure the wetlands meet the USACE’s and RWQCB’s definition of a wetland. The applicant shall implement the terms of the approved permit(s).
88. MM BIO-3d: Prior to issuance of the Phase 1 and Phase 2 grading permit, a Wetland Mitigation and Monitoring Plan shall be submitted to the San Francisco Bay Regional Water Quality Control Board (San Francisco Bay RWQCB) for review as part of the process for obtaining a permit from the agency.
The Wetland Mitigation and Monitoring Plan shall be prepared in accordance with the Subpart J– Compensatory Mitigation for Losses of Aquatic Resources outlined in the California State Water Resources Control Board (State Water Board) Procedures, and in accordance with the State Water Board Implementation Guidance dated April 2020, and in accordance with the United States Army Corps of Engineers (USACE) Compensatory Mitigation Rule (33 Code of Federal Regulations Part 332).
89. The basic objective of the Wetland Mitigation and Monitoring Plan is to ensure that project wetland impacts, and compensatory mitigation proposed to offset the wetland impacts, shall provide a nonet-loss of area of wetlands, and wetlands established/created shall be in-kind to the wetlands impacted. In summary, the Wetland Mitigation and Monitoring Plan shall at a minimum:
a. Preserve 7.58 acres of existing seasonal wetlands and 0.13 acre of vernal pools within the 45-acre Wetland Preserve.
b. Establish within the Wetland Preserve approximately 0.992 acre of seasonal wetlands in advance of or concurrent with implementation of Phase 1 impacts to 0.496 acre of palustrine emergent wetlands at a 2:1 ratio.
c. Establish within the Wetland Preserve approximately 2.57 acres of seasonal wetlands and 1.13 acres of vernal pools in advance of implementation of future Phase 2, assuming Phase 2 is built out, to address the potential maximum losses of approximately 3.7 acres of wetlands that may occur.
d. Provide financial assurances to ensure a high level of confidence that the compensatory mitigation shall be successfully completed, in accordance with applicable performance standards. e. Design ecological performance standards to assess whether the Wetland Mitigation and Monitoring Plan is achieving the overall objectives, so that it can be objectively evaluated to determine whether it is developing into the desired resource type (vernal pool, seasonal wetland e.g.), and attaining any other applicable metrics such as acres, number of native plant species, water saturation and/or ponding depth etc.
f. Monitor the site for a duration necessary to determine whether the Wetland Mitigation and Monitoring Plan is meeting the performance standards. Established palustrine emergent wetlands and vernal pools typically develop quickly on soils with clay restrictive horizon. The 45-acre Wetland Preserve does have a clay restrictive layer approximately 8–18 inches below the surface therefore a 5- year monitoring period would be sufficient to determine whether performance standards are met. This monitoring period may be extended if performance standards are not met due to how the wetlands were constructed or natural events such as severe droughts. g. Protect the approximately 45-acre Wetland Preserve in perpetuity using a conservation easement, and provide an endowment sufficient to fund the Long-Term Management Plan. h. An overall assessment of the condition of the wetlands that shall be permanently impacted by the proposed project shall be conducted using the California Rapid Assessment Method (CRAM) for depressional wetlands, or a hybrid approach based on CRAM. Each similar wetland type that may be impacted shall be assessed to describe the floristic community and record the native and non3986 native dominant plants within the vernal pool and palustrine emergent wetlands. Physical structure such as topographic complexity and physical features that may provide habitat for aquatic species (e.g., boulders, woody debris etc.) shall be recorded and used to design the created/established wetlands. The purpose of this assessment is to ensure the design of the wetlands shall provide habitat that is similar to the wetlands being impacted to ensure the impacted wetlands are mitigated in-kind.
Performance Standards
Performance Standards shall include at a minimum the following:
Years 1, 2, 3, 4 and 5 Performance Standards for Wetland Hydrology Each year wetland hydrology shall be measured during the winter when surface and/or subsurface hydrology would be observable. A minimum of 1 data point shall be taken in each of the established/created wetlands. In addition, wetland hydrologic indicators shall be recorded each spring during the vegetation monitoring period.
Year 1:
Performance standard would be met for Year 1-5 if:
• The created wetlands remain inundated to a minimum depth of 0.5 inch or greater for at least 7 days and/or saturated for at least 14 days and/or at least one primary or two secondary wetland hydrology indicators listed in the Arid West Region Wetland Determination Data Forms are recorded.
Contingency Measures:
If the annual performance standard is not being met for any given monitoring year the Permittee shall prepare an analysis of the cause(s) of failure and, if determined necessary, implement remedial action. If the Plan Area has not met the performance standard, the Permittee’s maintenance and monitoring obligations shall continue until the RWQCB and CDFW give final project confirmation.
Remedial action may include re-grading to achieve wetland hydrology, which would improve hydric soil formation.
Years 1, 2, 3, 4, and 5 Performance Standards for Increase in Colonization of Wetland Vegetation
Each year during the spring or early summer wetland vegetation cover shall be measured by conducting a site visit and recording absolute cover and dominant plant species observed within the wetland buffer area. A minimum of 1 data point shall be taken in each of the established/created wetlands. The colonization of wetland vegetation shall be measured by determining overall absolute plant cover values each year. This shall be accomplished by measuring absolute cover values within a 5-foot radius sample plot every 50 feet along a transect through each established/created wetland. In addition, to monitor for invasive plant species 3987
within the uplands which are not detected in the baseline survey, a minimum of three 5-foot radius sample plots on the east side and three on the west side will be placed at random upland locations along a linear transect east to west within the Wetland Preserve. Performance Standards for each monitoring year are listed below.
Year 1:
Performance standard would be met for Year 1 if:
• At least one hydrophytic plant species colonizes the established/created seasonal wetlands and vernal pools; and
• The average absolute cover of wetland vegetation within an established/created seasonal wetlands and vernal pools is 5 percent or greater.
Year 2:
Performance standard would be met for Year 2 if:
• Atleast one hydrophytic plantspecies colonizesthe established/created seasonal wetlands and vernal pools; and
• The average absolute cover of wetland vegetation within an established/created seasonal wetlands and vernal pools is 10 percent or greater.
Year 3:
Performance standard would be met for Year 3 if:
• Atleast two hydrophytic plantspecies colonizesthe established/created seasonal wetlands; • At least two native hydrophytic plant species colonizes the established/created vernal pools and at least one is a vernal pool habitat indicator species; and • The average absolute cover of wetland vegetation within an established/created seasonal wetlands and vernal pools is 20 percent or greater and comprised of native and naturalized species.
Year 4:
Performance standard would be met for Year 4 if:
• Atleast two hydrophytic plantspecies colonize the established/created seasonal wetlands. • At least two native hydrophytic plant species colonizes the established/created vernal pools and at least one is a vernal pool habitat indicator species. • The average absolute cover of wetland vegetation within an established/created seasonal wetland and vernal pool is 30 percent or greater.
3988
• To meet the wetland performance standard invasive plant species within the wetlands shall not comprise greater than 5 percent of the total absolute cover. To meet the upland performance standard, invasive plant species, which currently are not supported in the uplands, shall not comprise greater than 5 percent of the total absolute cover. Invasive plants shall be defined as species rated as “High” by California Invasive Plant Council (Cal-IPC) and species on the ”Alert” or “Watch” list with a High rating.
Year 5:
Performance standard would be met for Year 5 if:
• At least two hydrophytic plant species documented during the CRAM assessment for the palustrine emergent wetlands impacted on the Phase 1 project site colonize the established/created seasonal wetlands.
• At least two native vernal pool habitat indicator species documented during the CRAM assessment for the vernal pool on the Phase 2 project site colonizes the established/created vernal pools.
• The average absolute cover of wetland vegetation within the established/created seasonal wetland (non-vernal pool wetlands) is 40 percent or greater; and the average absolute cover of wetland vegetation within the established/created vernal pools is 40 percent or greater of which greater than 50 percent of the vegetation cover consists of two or more dominate native vernal pool habitat indicator plants.
• To meet the wetland performance standard invasive plant species within the wetlands shall not comprise greater than 5 percent of the total absolute cover. To meet the upland performance standard, invasive plant species, which currently are not supported in the uplands, shall not comprise greater than 5 percent of the total absolute cover. Invasive plants shall be defined as species rated as “High” by California Invasive Plant Council (CalIPC) and species on the ”Alert” or “Watch” list with a High rating.
Contingency Measures:
If the annual performance standard is not being met for any given monitoring year the Permittee shall prepare an analysis of the cause(s) of failure and, if determined necessary, implement remedial action. Remedial action may include hydroseeding with native species, or addition of supplemental topsoil or mulch to promote growth.
Year 5 No-Net-Loss Performance Standard for Phase 1 Impacts Performance standard would be met for Year 5 when;
• A wetland delineation is performed and verified by the USACE and confirms a minimum of 0.992 acre of wetlands have been established/created within the Wetland Preserve.
3989
Year 5 No-Net-Loss Performance Standard for Phase 2 Impacts The Phase 2 no-net-loss performance standard would be measured when an application for the Phase 2 project is submitted to the RWQCB and USACE, and the Phase 2 project is approved. Once Phase 2 has been approved by the RWQCB andUSACE,this performance standardmay bemodified depending on the level of wetland impacts authorized by the RWQCB and USACE, meaning this performance standard may decrease if the wetlands impacted for Phase 1 are less than 3.7 acres.
Performance standard would be met for Year 5 when;
• A wetland delineation is performed and verified by the USACE and confirms a minimum of
2.57 acres ofseasonal wetland and 1.13 acres of vernal pools have been established/created within the Wetland Preserve.
Year 5 Long-Term Protection and Long-Term Funding
Performance standard would be met for Year 5 once:
• The Wetland Preserve has been placed under a conservation easement; and A long-term financing mechanism (e.g., non-wasting endowment, trusts, contractual arrangement etc.) to fund implementation of the long-term management of the Wetland Preserve has been secured.
90. MM BIO-4: If construction occurs during the breeding season of migratory and resident birds (February 1 to August 31), a qualified Biologist shall conduct a pre-construction breeding bird survey in areas of suitable habitat within 7 days prior to the onset of construction activity. Surveys shall be conducted within the project footprint and 100 feet from the construction limits for nesting passerines, 250 feet from the construction limits for nesting accipiters and a minimum of 500 feet from the construction limits for nesting raptors. If the survey area is found to be absent of nesting birds, no further mitigation would be required. However, if construction activities are delayed by more than 7 days, an additional nesting bird survey shall be performed.
If bird nests are found, appropriate buffer zones shall be established around all active nests to protect nesting adults and their young from direct or indirect impacts related to project construction disturbance. Size of buffer zones shall be determined per recommendations of the qualified Biologist based on site conditions and species involved, but typical buffers around active nests are 500 feet for large raptors such as buteos, 250 feet for small raptors such as accipiters, and 100 feet for passerines (songbirds) and other bird species. For special status species, a 0.25-mile shall be established for nesting Swainson’s hawk; 1.0 mile for golden eagle; and a 500-foot buffer for nesting tricolored blackbirds. If an active nest is located outside of the project site, the buffer shall be extended onto the project site and demarcated where it intersects the project site. Buffer zones shall be maintained until it can be documented that either the nest has failed, or the young have fledged.
91. MM CUL-2a: No ground disturbance shall take place within 100 feet of informal archaeological resource 483A-001. The resource shall be preserved in place.
92. MM CUL-2b: An Archaeologist who meets the Secretary of the Interior’s Professional Qualification Standards for archaeology shall be present on-site during all earth disturbing activities. If prehistoric or historic-period archaeological resources are encountered, all construction activities within 100 feet of the find shall halt and the City of American Canyon shall be notified. Prehistoric archaeological materials may include obsidian and chert flaked stone tools (e.g., projectile points, knives, scrapers) 3990
or toolmaking debris; culturally darkened soil (“midden”) containing heat-affected rocks, artifacts, or shellfish remains; and stone milling equipment (e.g., mortars, pestles, hand stones, or milling slabs); and battered stone tools, such as hammerstones and pitted stones. Historic- period materials might include stone, concrete, or adobe footings and walls; filled wells or privies; and deposits of metal, glass, and/or ceramic refuse.
The Archaeologist shall inspect the findings within 24 hours of discovery. If it is determined the project could damage a historical resource or a unique archaeological resource (as defined pursuant to the CEQA Guidelines), mitigation shall be implemented in accordance with Public Resources Code Section 21083.2 and Section 15126.4 of the CEQA Guidelines, with a preference for preservation in place.
Consistent with Section 15126.4(b)(3), this may be accomplished through planning construction to avoid the resource; incorporating the resource within open space; capping and covering the resource; or deeding the site into a permanent conservation easement. If avoidance is not feasible, a qualified Archaeologist shall prepare and implement a detailed treatment plan in consultation with the City of American Canyon. Treatment of unique archaeological resources shall follow the applicable requirements of Public Resources Code Section 21083.2. Treatment for most resources would consist of (but would not be limited to) sample excavation, artifact collection, and site documentation, with the aim to target the recovery of important scientific data contained in the portion(s) of the significant resource to be impacted by the proposed project. The treatment plan shall include provisions for analysis of data in a regional context, reporting of results within a timely manner, curation of artifacts and data at an approved facility, and dissemination of reports to local and State repositories, libraries, and interested professionals.
93. MM CUL-3: In the event of the accidental discovery or recognition of any human remains, CEQA Guidelines Section 15064.5, Health and Safety Code Section 7050.5, and Public Resources Code Sections 5097.94 and Section 5097.98 shall be followed. If during project construction, there is accidental discovery or recognition of any human remains, the following steps shall be taken:
a. There shall be no further excavation or disturbance within 100 feet of the remains until the County Coroner is contacted to determine whether the remains are Native American and if an investigation of the cause of death is required. If the Coroner determines the remains to be Native American, the Coroner shall contact the Native American Heritage Commission (NAHC) within 24 hours, and the NAHC shall identify the person or persons it believes to be the Most Likely Descendant (MLD) of the deceased Native American. The MLD may make recommendations to the landowner or the person responsible for the excavation work within 48 hours, for means of treating or disposing of, with appropriate dignity, the human remains, and any associated grave goods as provided in Public Resource Code Section 5097.98. b. Where the following conditions occur, the landowner or authorized representative shall rebury the Native American human remains and associated grave goods with appropriate dignity either in accordance with the recommendations of the MLD or on the project site in a location not subject to further subsurface disturbance:
• The NAHC is unable to identify an MLD or the MLD failed to make a recommendation within 48 hours after being notified by the commission.
• The descendant identified fails to make a recommendation. • The landowner or authorized representative rejects the recommendation of the descendant, and mediation by the NAHC fails to provide measures acceptable to the landowner.
Additionally, California Public Resources Code Section 15064.5 requires the following relative to Native American Remains:
3991
i. When an initial study identifies the existence of, or the probable likelihood of, Native American Remains within a project, a lead agency shall work with the appropriate Native Americans as identified by the NAHC as provided in Public Resources Code Section 5097.98.
The applicant may each develop a plan with respect to their respective individual development proposals for treating or disposing of, with appropriate dignity, the human remains, and any items associated with Native American Burials with the appropriate Native Americans as identified by the NAHC.
94. MM CUL-4: A Tribal Monitor representing the Yocha Dehe Wintun Nation shall be present during all project-related ground disturbance. Additionally, the Yocha Dehe Wintun Nation’s Treatment Protocol (Protocol) shall be followed with respect to Tribal Cultural Resources (TCRs). The purpose of the protocol is to formalize procedures for the treatment of Native American human remains, grave goods, ceremonial items, and items of cultural patrimony, if any are found in conjunction with development, including archaeological studies, excavation, geotechnical investigations, grading, and any ground-disturbing activity. This Protocol also formalizes procedures for Tribal Monitoring during archaeological studies, grading, and ground-disturbing activities. a. Cultural Affiliation: The Yocha Dehe Wintun Nation (Tribe) traditionally occupied lands in Yolo, Solano, Lake, Colusa, and Napa Counties. The Tribe has designated its Cultural Resources Committee (Committee) to act on the Tribe's behalf with respect to the provisions of this Protocol.
Any human remains which are found in conjunction with projects on lands culturally affiliated with the Tribe shall be treated in accordance with Section III of this Protocol. Any other cultural resources shall be treated in accordance with Section IV of this Protocol. b. Inadvertent Discovery of Native American Human Remains: Whenever Native American human remains are found during the course of a project, the determination of Most Likely Descendant (MLD) under California Public Resources Code Section 5097.98 will be made by the Native American Heritage Commission (NAHC) upon notification to the NAHC of the discovery of said remains at a project site. If the location of the site and the history and prehistory of the area is culturally affiliated with the Tribe, the NAHC contacts the Tribe; a Tribal member will be designated by the Tribe to consult with the landowner and/or project proponents.
Should the NAHC determine that a member of an Indian tribe other than Yocha Dehe Wintun Nation is the MLD, and the Tribe agrees with this determination, the terms of this Protocol relating to the treatment of such Native American human remains shall not be applicable; however, that situation is very unlikely.
c. Treatment of Native American Remains: In the event that Native American human remains are found during development of a project and the Tribe or a member of the Tribe is determined to be MLD pursuant to Section II of this Protocol, the following provisions shall apply. The Medical Examiner shall immediately be notified, ground-disturbing activities in that location shall cease and the Tribe shall be allowed, pursuant to California Public Resources Code Section 5097.98(a), to (1) inspect the site of the discovery and (2) make determinations as to how the human remains and grave goods shall be treated and disposed of with appropriate dignity. The Tribe shall complete its inspection and make its MLD recommendation within 48 hours of getting access to the site. The Tribe shall have the final determination as to the disposition and treatment of human remains and grave goods. Said determination may include avoidance of the human remains, reburial on-site, or reburial on tribal or other lands that will not be disturbed in the future. The Tribe may wish to rebury said human remains and grave goods or ceremonial and cultural items on or near the site of their discovery, in an area which will not be subject to future disturbances over a prolonged period of time. Reburial of human remains shall be accomplished in compliance with the California Public Resources Code Sections 5097.98(a) and (b). The term "human remains" 3992
encompasses more than human bones because the Tribe’s traditions call for the burial of associated cultural items with the deceased (funerary objects), and/or the ceremonial burning of Native American human remains, funerary objects, grave goods, and animals. Ashes, soils, and other remnants of these burning ceremonies, as well as associated funerary objects and unassociated funerary objects buried with or found near the Native American remains are to be treated in the same manner as bones or bone fragments that remain intact. d. Non-Disclosure of Location of Reburials: Unless otherwise required by law, the site of any reburial of Native American human remains shall not be disclosed and will not be governed by public disclosure requirements of the California Public Records Act, California Government Code Section 6250 et seq. The Medical Examiner shall withhold public disclosure of information related to such reburial pursuant to the specific exemption set forth in California Government Code Section 6254(r). The Tribe will require that the location for reburial is recorded with the California Historic Resources Inventory System (CHRIS) on a form acceptable to the CHRIS center. The Tribe may also suggest the landowner enter into an agreement regarding the confidentiality of site information that will run with title on the property.
e. Treatment of Cultural Resources: Treatment of all cultural items, including ceremonial items and archaeological items will reflect the religious beliefs, customs, and practices of the Tribe. All cultural items, including ceremonial items and archaeological items, which may be found at a project site shall be turned over to the Tribe for appropriate treatment, unless ordered by a court or agency of competent jurisdiction. The project proponent shall waive any and all claims to ownership of Tribal ceremonial and cultural items, including archaeological items, which may be found on a project site in favor of the Tribe. If any intermediary, (for example, an Archaeologist retained by the project proponent) is necessary, said entity or individual shall not possess those items for longer than is reasonably necessary, as determined solely by the Tribe. f. Inadvertent Discoveries: If additional significant sites or sites not identified as significant in a project environmental review process, but later determined to be significant, are located within a project impact area, such sites will be subjected to further archaeological and cultural significance evaluation by the project proponent, the Lead Agency, and the Tribe to determine whether additional mitigation measures are necessary to treat sites in a culturally appropriate manner consistent with CEQA requirements for mitigation of impacts to cultural resources. If there are human remains present that have been identified as Native American, all work will cease for a period of up to 30 days in accordance with Federal Law.
95. MM GEO-1b: Prior to the issuance of building permits for each Phase 1 and 2 structure, the project applicant shall submit a design-level Geotechnical Investigation to the City of American Canyon for review and approval. The investigation shall be prepared by a qualified engineer and identify grading and building practices necessary to achieve compliance with the latest adopted edition of the California Building Standards Code (CBC) geologic, soils, and seismic requirements, including abatement of expansive soil conditions. The report shall also determine the final design parameters for walls, foundations, foundation slabs, and surrounding related improvements (e.g., utilities roadways, parking lots, and sidewalks). The measures identified in the approved report shall be incorporated into the project plans and all applicable construction-related permits.
96. MM GEO-5: If potential fossils are discovered during project implementation, all earthwork or other types of ground disturbance within 100 feet of the find shall stop immediately until a qualified professional Paleontologist can assess the nature and importance of the find. Based on the scientific value or uniqueness of the find, the Paleontologist shall either record the find and recommend that the City of American Canyon allow work to continue or recommend salvage and recovery of the fossil. 3993
The Paleontologist shall, if required, propose modifications to the stop-work radius based on the nature of the find, site geology, and the activities occurring on the site. If treatment and salvage is required, recommendations will be consistent with Society of Vertebrate Paleontology guidelines and currently accepted scientific practice. If required, treatment for fossil remains shall include preparation and recovery of fossil materials so that they can be housed in an appropriate museum or university collection, and, if required, shall also include preparation of a report for publication describing the finds.
97. MM GHG-1a: Prior to the issuance of any grading permits, the project applicant shall provide the City of American Canyon with documentation (e.g., site plans) demonstrating project construction will include the following construction Best Management Practices (BMPs):
a. At least 15 percent of the construction fleet for each project phase shall be alternatively fueled or electric.
b. At least 10 percent of building materials used for project construction shall be sourced from local suppliers.
c. Atleast 65 percent of construction and demolitionwaste materials shall be recycled or reused. d. Atleast one contractorthat has a businesslocation in American Canyon shall be contracted for project construction.
e. All construction contracts shall include language that requires all off-road equipment with a power rating below 19 kilowatts (e.g., plate compactors, pressure washers) using during construction be electrically powered.
f. Architectural coatings used for project construction shall be “Low-VOC,” containing no greater than 50 grams of volatile organic compounds (VOC) per liter of product. g. Project construction shall prohibit the use of generators and shall establish grid power connection to electrical equipment needs.
h. Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to 5 minutes (as required by the California Airborne Toxics Control Measure [ATCM] Title 13, Section 2485 of California Code of Regulations). Clear signage regarding idling restrictions shall be provided for construction workers at all access points. i. All construction equipment shall be maintained and properly tuned in accordance with manufacturer’s specifications. All equipment shall be checked by a certified mechanic and determined to be running in proper condition prior to operation. j. The prime construction contractor shall post a publicly visible sign with their telephone number and contractor to contact. The construction contractor shall take corrective action within 48 hours. The BAAQMD’s phone number shall also be identified and visible to ensure compliance with applicable regulations.
98. MM GHG-1b: Prior to the issuance of any building permits, the project applicant shall provide the City of American Canyon with documentation (e.g., site plans) demonstrating the proposed project is designed without the use of any natural gas -fueled appliances or natural gas plumbing.
99. MM GHG-1c: Prior to issuance of any building permits, the project applicant shall demonstrate to the satisfaction of the City of American Canyon (e.g., shown on-site plans), that the proposed buildings are designed and will be built to, at a minimum, the Tier 2 advanced energy efficiency requirements of the Nonresidential Voluntary Measures of the California Green Building Standards 3994
Code, Division A5.2, Energy Efficiency, as outlined under Section A5.203.1.2.2. 100. MM GHG-1d: Prior to issuance of any building permits, the project applicant shall demonstrate to the satisfaction of the City of American Canyon (e.g., shown on-site plans), that the proposed parking areas for passenger automobiles and trucks are designed and will be built to accommodate electric vehicle (EV) charging stations. At a minimum, the parking shall be designed to accommodate a number of EV charging stations equal to the Tier 2 Nonresidential Voluntary Measures of the California Green Building Standards Code, Section A5.106.5.3.2. 101. MM GHG-1d: Prior to the issuance of any building permits, the project applicant shall demonstrate to the satisfaction of the City of American Canyon (e.g., shown on-site plans), that each loading dock is outfitted with at least one 240-volt outlet to accommodate truck and Transport Refrigeration Unit (TRU) charging and/or electrical power connection while trucks are loading and unloading goods.
102. MM GHG-1e: Prior to the issuance of any building permit for the proposed project, the project applicant shall provide the City with documentation (e.g., site plans) demonstrating to the City’s satisfaction that the electricity demand will be supplied with 100 percent carbon-free electricity sources through the year 2045. As City decision maker, the City Council requires this mitigation measure be accomplished with on-site solar panel electricity. 103. MM HYD-1a: Prior to issuance of grading permits for the proposed project, the applicant shall submit to the City of American Canyon for review and approval a Storm Water Pollution Prevention Plan (SWPPP) in accordance with the requirements of the statewide Construction General Permit.
The SWPPP shall be designed to address the following objectives: (1) all pollutants and their sources (e.g., runoff), including sources of sediment associated with construction, construction site erosion, and all other activities associated with construction activity, are controlled; (2) where not otherwise required to be under a Regional Water Quality Control Board (RWQCB) permit, all non-stormwater discharges are identified and either eliminated, controlled, or treated; (3) site Best Management Practices (BMPs) (e.g., silt fencing, street sweeping, routine inspection, etc.) are effective and result in the reduction or elimination of pollutants in stormwater discharges and authorized nonstormwater discharges from construction activity; and (4) stabilization BMPs are installed to reduce or eliminate pollutants after construction are completed. The SWPPP shall be prepared by a qualified SWPPP developer. The SWPPP shall include the minimum BMPs required for the identified Risk Level. BMP implementation shall be consistent with the BMP requirements in the most recent version of the California Stormwater Quality Association (CASQA) Stormwater Best Management Handbook–Construction or the California Department of Transportation (Caltrans) Stormwater Quality Handbook Construction Site BMPs Manual. The SWPPP shall be implemented during construction.
104. MM HYD-1b: Prior to the issuance of building permits, the project applicant shall submit a Stormwater Control Plan to the City of American Canyon for review and approval. The plan shall be developed using the California Stormwater Quality Association (CASQA) “New Development and Redevelopment Handbook” and include applicable provisions of Section C.3 of the San Francisco Bay Regional Water Quality Control Board (RWQCB) Municipal Regional Permit (Order No. R2-2015- 0049, NPDES Permit No. CAS612008 (or more recent permit). The Stormwater Control Plan shall identify pollution prevention measures and Best Management Practices (BMPs) to control stormwater pollution from operational activities and facilities and provide maintenance in perpetuity. The Stormwater Control Plan shall include Low Impact Development (LID) design concepts, as well as concepts that accomplish a “first flush” objective that remove contaminants 3995
from the first 2 inches of stormwater before it enters area waterways. The project applicant shall also prepare and submit an Operations and Maintenance Agreement to the City, identifying procedures to ensure stormwater quality control measures work properly during operations. 105. MM LU-3: Prior to issuance of grading permits, the applicant shall retain a qualified Biologist to assess potential wildlife hazards to aviation. The assessment shall evaluate the characteristics of the emergent wetlands, drainages, other potential wildlife attractant features (i.e., ponded water) located within the open space area and identify management practices (e.g., storm drainage, vegetation, etc.) to prevent the creation of attractants for large flocks or birds or other wildlife species that may present safety hazards to aviation activities. As part of the assessment, the applicant shall consult with Napa County Airport and Napa County Airport Land Use Commission (ALUC) representatives, as appropriate, regarding findings and recommendations. The applicant shall submit a report to the City of American Canyon prepared by a qualified Biologist that confirms the wildlife hazard assessment’s findings and recommendations are incorporated into the design of the open space preserve.
106. MM NOI-1: Implementation of the following multi-part mitigation measure is required to reduce potential construction period noise impacts:
a. The construction contractor shall ensure that all equipment driven by internal combustion engines shall be equipped with mufflers that are in good condition and appropriate for the equipment.
b. The construction contractor shall ensure that unnecessary idling of internal combustion engines (i.e., idling in excess of 5 minutes) is prohibited.
c. The construction contractor shall utilize “quiet” models of air compressors and other stationary noise sources where technology exists.
d. At all times during project grading and construction, the construction contractor shall ensure that stationary noise- generating equipment shall be located as far as practicable from sensitive receptors and placed so that emitted noise is directed away from adjacent residences. e. The construction contractor shall ensure that the construction staging areas shall be located to create the greatest feasible distance between the staging area and noise-sensitive receptors nearest the project site.
107. MM NOI-1: The construction contractor shall ensure that all on-site construction activities, including the operation of any tools or equipment used in construction, drilling, repair, alteration, grading, or demolition work, are limited to between the daytime hours of 7:00 a.m. to 7:00 p.m.
Monday through Saturday. No construction shall be permitted on Sundays and federal holidays. 3996
PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 21st day of March, 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
____________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ ___________________________ Taresa Geilfuss, CMC, City Clerk William D. Ross, City Attorney EXHIBITS:
A. Giovannoni Logistics Center Tentative Parcel Map Plans B. Confirmation of Conditions of Approval
C. ACFPD Agreement 2022-29
3997
NO TRUCKS
NO TRUCKS NO TRUCKS
STOP
STOP
STOP STOP STOP STOP
STOP
STOP BUILDING A BUILDING B LOT 1 LOT 2 GREEN ISLAND ROAD DEVLIN ROAD BIORETENTION BIORETENTION F:\2637-000\ACAD\TM\EAST\TM-01E.DWG CIVIL ENGINEERS SURVEYORS PLANNERS SAN RAMON WWW.CBANDG.COM ROSEVILLE (925) 866-0322 (916) 788-4456 0 100 200 300 TENTATIVE MAP GIOVANNONI LOGISTICS CENTER - EAST TITLE SHEET AND TENTATIVE PARCEL MAP CITY OF AMERICAN CANYON NAPA COUNTY CALIFORNIA SCALE: 1" = 100' DATE:SEPTEMBER 17, 2021 OF SHEETS SHEET NO. TM-1 6 GENERAL NOTES ABBREVIATIONS VICINITY MAP LEGEND EXISTING PROPOSED DESCRIPTION SHEET INDEX SHEET NUMBER SHEET TITLE LAND USE SUMMARY PARCEL ACREAGE LAND USE ATTACHMENT 3. EXHIBIT A EXHIBIT A 3998
GREEN ISLAND ROAD
DEVLIN ROAD (CITY PROJECT) F:\2637-000\ACAD\TM\EAST\TM-02E.DWG CIVIL ENGINEERS SURVEYORS PLANNERS SAN RAMON WWW.CBANDG.COM ROSEVILLE (925) 866-0322 (916) 788-4456 0 100 200 300 TENTATIVE MAP GIOVANNONI LOGISTICS CENTER - EAST EXISTING CONDITIONS CITY OF AMERICAN CANYON NAPA COUNTY CALIFORNIA SCALE: 1" = 100' DATE:SEPTEMBER 17, 2021 OF SHEETS SHEET NO. TM-2 6 LEGEND 3999
SECTION A SECTION B SECTION C SECTION D SECTION E SECTION F SECTION G SECTION H
NO TRUCKS
NO TRUCKS NO TRUCKS
STOP
STOP
STOP STOP STOP STOP
STOP
STOP BUILDING A FF 51.9 P 51.0 BUILDING B FF 46.5 P 45.6 LOT 1 LOT 2 GREEN ISLAND ROAD BIORETENTION B T.S.L. 38.2 BIORETENTION A T.S.L. 39.2 B A E C D F G H DEVLIN ROAD (CITY PROJECT) F:\2637-000\ACAD\TM\EAST\TM-03E.DWG CIVIL ENGINEERS SURVEYORS PLANNERS SAN RAMON WWW.CBANDG.COM ROSEVILLE (925) 866-0322 (916) 788-4456 0 100 200 300 TENTATIVE MAP GIOVANNONI LOGISTICS CENTER - EAST PRELIMINARY GRADING & DRAINAGE PLAN CITY OF AMERICAN CANYON NAPA COUNTY CALIFORNIA SCALE: 1" = 100' DATE:SEPTEMBER 17, 2021 OF SHEETS SHEET NO. TM-3 3 LEGEND EXISTING PROPOSED PRELIMINARY EARTHWORK SUMMARY DESCRIPTION 4000
GREEN ISLAND ROAD BUILDING A BUILDING B LOT 1 LOT 2
DEVLIN ROAD (CITY PROJECT) BIORETENTION A GREEN ISLAND ROAD BIORETENTION B F:\2637-000\ACAD\TM\EAST\TM-04E.DWG CIVIL ENGINEERS SURVEYORS PLANNERS SAN RAMON WWW.CBANDG.COM ROSEVILLE (925) 866-0322 (916) 788-4456 0 100 200 300 TENTATIVE MAP GIOVANNONI LOGISTICS CENTER - EAST PRELIMINARY UTILITY PLAN CITY OF AMERICAN CANYON NAPA COUNTY CALIFORNIA SCALE: 1" = 100' DATE:SEPTEMBER 17, 2021 OF SHEETS SHEET NO. TM-4 6 LEGEND EXISTING PROPOSED DESCRIPTION 4001
BUILDING A BUILDING B LOT 1 LOT 2 BIORETENTION ADMA A 31.2 AC DMA B 30.5 AC BIORETENTION B DEVLIN ROAD (CITY PROJECT) GREEN ISLAND ROAD ST1 1.2 AC ST3 1.9 AC 2A BR 2.5 AC 2B BR 2.5 AC TYPICAL BIORETENTION DETAIL F:\2637-000\ACAD\TM\EAST\TM-05E.DWG CIVIL ENGINEERS SURVEYORS PLANNERS SAN RAMON WWW.CBANDG.COM ROSEVILLE (925) 866-0322 (916) 788-4456 0 100 200 300 TENTATIVE MAP GIOVANNONI LOGISTICS CENTER - EAST PRELIMINARY STORM WATER CONTROL PLAN CITY OF AMERICAN CANYON NAPA COUNTY CALIFORNIA SCALE: 1" = 100' DATE:SEPTEMBER 17, 2021 OF SHEETS SHEET NO. TM-5 6 LEGEND EXISTING PROPOSED DESCRIPTION WATER QUALITY TABLE DRAINAGE MANAGEMENT AREA (DMA) DRAINAGE AREA (AC) TREATMENT AREA REQUIRED (SF) TREATMENT AREA PROVIDED (SF) BIORETENTION FACILITY 4002
BUILDING A BUILDING B LOT 1 LOT 2 GREEN ISLAND ROAD BIORETENTION A DEVLIN ROAD (CITY PROJECT) BIORETENTION B F:\2637-000\ACAD\TM\EAST\TM-06E.DWG CIVIL ENGINEERS SURVEYORS PLANNERS SAN RAMON WWW.CBANDG.COM ROSEVILLE (925) 866-0322 (916) 788-4456 0 100 200 300 TENTATIVE MAP GIOVANNONI LOGISTICS CENTER - EAST PRELIMINARY FIRE ACCESS PLAN CITY OF AMERICAN CANYON NAPA COUNTY CALIFORNIA SCALE: 1" = 100' DATE:SEPTEMBER 17, 2021 OF SHEETS SHEET NO. TM-6 6 LEGEND FIRE TRUCK TURNING TEMPLATE 4003
ATTACHMENT 3. EXHIBIT B
EXHIBIT B
Applicant Confirmation of Conditions of Approval
Giovannoni Logistics Center Tentative Parcel Map
(FILE NO. PL20-0043)
As shown by my signature below, I confirm that I understand and agree to abide by the conditions of approval included in the City Council Resolution dated 21st day of March, 2023.
Applicant’s signature Date
Applicant’s name
1 st Property Owner’s signature Date
1 st Property Owner’s name
2 nd Property Owner’s signature Date
2 nd Property Owner’s name
This approval shall not be effective until the applicant and property owner execute and return the “Applicant Confirmation of Conditions of Approval” form to the Community Development Department.
Please return signed confirmation to the City of American Canyon Community Development Department, 4381 Broadway, Suite 201, American Canyon, CA 94503
4004
EXHIBIT C ATTACHMENT 3. EXHIBIT C
4005
4006
500 CAPITOL MALL, SUITE 1000, SACRAMENTO, CA 95814
OFFICE: 916-446-7979 FAX: 916-446-8199
SOMACHLAW.COM
M E M O R A N D U M
TO: William Ross
FROM: Alexis K. Stevens and Kelley M. Taber
SUBJECT: Giovannoni Logistics Center Project: City of Vallejo February 21, 2023 Comments
DATE: March 20, 2023
We have evaluated the issues raised by the City of Vallejo (Vallejo or City) in its February 21, 2023 comments on the Giovannoni Logistics Center Project (Project) (Vallejo Letter). Vallejo raises concerns about the Project water supply and the adequacy of the WSA and final environmental impact report (Final EIR). We address each of Vallejo’s issues.
Vallejo Comment: “Vallejo has not been contacted to consider the impact on its water rights through the proposed City Council actions and approvals.” (Vallejo Letter, pp. 1-2.)
Vallejo objects that the Project Water Supply Assessment (WSA) “mischaracterizes Vallejo’s water rights” because the WSA characterizes the water that American Canyon receives from Vallejo pursuant to the two cities’ 1996 water service agreement (1996 Agreement) as “a blend of all of Vallejo’s water sources.” Vallejo further objects that the WSA does not identify that only one of Vallejo’s water rights has an authorized place of use that includes American Canyon, and that water right – License 7848 (referred to as Vallejo Permit Water) – does not extend to the whole of American Canyon. Vallejo requests that American Canyon reassess the WSA and the Project Final EIR’s conclusions regarding the Vallejo Permit Water serving the Project. Vallejo further states that even if the Project is within the place of use for License 7848, American Canyon “should consider developing an alternative water supply for the Project.” Finally, Vallejo suggests that the City is a responsible agency under the California Environmental Quality Act (CEQA) for the Project.
Response:
First, Vallejo is not a responsible agency under CEQA for the Project. Vallejo has no discretionary approval authority over any aspect of the Project. American Canyon does not require Vallejo’s permission to supply water to the Project. 4007
William Ross
Re: Giovannoni Logistics Center Project: City of Vallejo February 21, 2023 Comments March 20, 2023
Second, the quoted language describing the water American Canyon receives under the 1996 Agreement was made in reference to City-wide supply (not specific to the Project) and was summarized from information in the City’s 2015 Urban Water Management Plan (UWMP), which was the information available at the time the WSA was prepared. That portion of the Vallejo water description was removed in the 2020 UWMP. The 1996 Agreement and the City’s obligations thereunder are also the subject of pending litigation between the City and American Canyon.
A February 7, 2023 memorandum from Balance Hydrologics (2023 Update Memo) updates the WSA with information from the 2020 UWMP and describes why the information in the 2020 UWMP does not change any of the conclusions in the WSA regarding the sufficiency of the Project water supply:
[T]he Water Supply Assessment for the Giovannoni Logistics Center was prepared in 2021, using the most recent Urban Water Management Plan for the City available at that time. That document concluded that supply was available to meet the projected Project and City-wide demand under all year type scenarios through the planning period. The 2020 UWMP, while projecting lower demand and even less available supply than that projected in the 2015 UWMP, still concluded that available additional supply can be purchased to overcome potential drought-scenario shortfalls through the 2045 planning period. The 2020 UWMP analysis included more than enough projected increase in C/I/I demand to accommodate the Project’s anticipated potable water usage. Thus, even though a formal update of the WSA is not required (the analysis was completed long before the 2020 UWMP was published), we would not expect the conclusions of the WSA to change under the 2020 UWMP analysis.
Because the WSA conclusions remain valid, and the Final EIR relied on the conclusions in the WSA, the Final EIR’s conclusions regarding the Project water supply remain valid.
The WSA evaluates the Project water demand in the context of the City’s full portfolio of available water supplies. The WSA does not assume that Vallejo Permit Water will be used to serve the Project, or that Vallejo Permit Water is necessary to meet the Project demand. The WSA and EIR show surplus potable water supply larger than the total Vallejo Permit Water in virtually every water year scenario. (DEIR Table 3.13-9.) The very low Project water demand (approximately 24 acre feet per year [AFY]) is well within American Canyon’s total available supply and the estimated demand for urban and industrial use. Based on its portfolio of supply, American Canyon would not need to rely explicitly on Vallejo Permit Water to supply the Project and nothing in the WSA or EIR demonstrates that the City intends to serve the Project specifically with Vallejo Permit Water. 4008
William Ross
Re: Giovannoni Logistics Center Project: City of Vallejo February 21, 2023 Comments March 20, 2023
Vallejo Comment: The proposed City Council actions and approvals fail to consider the ongoing litigation between American Canyon and Vallejo relative to the 1996 Water Service Agreement (1996 Agreement). (Vallejo Letter, pp. 2-3.) Vallejo contends that the lawsuit American Canyon filed against Vallejo over the 1996 Agreement raises questions about the reliability of the Project water supply, and argues the WSA should have been updated to reflect the litigation, and that the lack of information about the litigation “renders the WSA unreliable and incomplete.” Response:
The WSA, including the 2023 Update Memo, demonstrates that American Canyon has available supply to meet the Project’s 24 AF per year (AFY) demand, without Vallejo water.
Only 23 percent of the City’s water supply is from the City of Vallejo in a “normal” year. As noted by Vallejo, the Project site is outside the place of use for Vallejo Permit Water, and thus the litigation could have no direct impact on that source of water for Project water supply.
The Vallejo 2020 UWMP stated the following regarding its sale of water to American Canyon: “The [City’s] contract does not allow for restrictions or reductions. For demand projection purposes, the full 3,074 AFY is assumed.” In this case, the cited 3,074 AFY refers to the sum of raw (500 AFY), treated (2,074 AFY), and emergency water (500 AFY). The WSA assumed up to 3,706 AFY of available supply from Vallejo (in a ‘normal year’ occurring in 2045), but reduced to 3,565 AFY during dry years occurring in 2045 (treated water is assumed to be reduced by 20 percent, but 500 AFY of ‘emergency water’ would be available during those periods). Importantly, the American Canyon 2020 UWMP assumed a total supply from Vallejo of only up to 1,129 AFY (500 AFY of raw water plus 629 AFY of treated water) in normal years through the full planning period, and still concludes that sufficient water is available through purchase of supplemental water to meet demand.
The litigation over the 1996 Agreement is in its early stages and it would be speculative to assume that it will result in any particular outcome. A discussion of the pending litigation would not add anything substantial to an understanding of Project water availability, particularly in light of Vallejo’s adopted 2020 UWMP, which states the contract water cannot be reduced.
As described in the WSA, the City has alternative water supplies, including the option to purchase water if needed. The WSA assumed a reduction in supply from Vallejo during single-dry- and multi-dry-year scenarios. Furthermore, the American Canyon 2020 UWMP assumed only 629 AFY of treated water supplied from Vallejo (as opposed to the 2,074 assumed in the Vallejo 2020 UWMP). Should the litigation over the 1996 Agreement result in a further reduction in the City’s portfolio of supply, it is reasonable to assume the City would acquire a substitute supply. The City’s 2015 and 2020 UWMPs both concluded that predicted water supply constraints can be resolved through the purchase of “supplemental imported water through existing agreements through the planning horizon (2045) for all water year 4009
William Ross
Re: Giovannoni Logistics Center Project: City of Vallejo February 21, 2023 Comments March 20, 2023
scenarios” (2020 UWMP, pp. 1-2.) Although the WSA did not assume that purchased water was a reliable enough supply for the purposes of accounting in the formal supply/demand projections, the fact remains that water purchases, both temporary and permanent, are commonly used in California to redirect water resources to areas of greatest need, consistent with the legislative policy of the state to facilitate water transfers. (See Wat. Code, §§ 475, 480 et seq.)
Vallejo Comment: American Canyon failed to consider Vallejo’s comments to American Canyon’s water supply documents, including Vallejo’s April 6, 2022 comments to American Canyon’s Draft 2020 Urban Water Management Plan. (Vallejo Letter, p. 3.)
Vallejo objects that American Canyon did not provide a response to Vallejo’s comments on the City’s draft 2020 UWMP and “did not revise the plan” before adopting it in January 2023.
Response:
American Canyon complied with all applicable requirements for its 2020 UWMP.
American Canyon was not required to respond to Vallejo’s comments on the draft 2020 UWMP. As discussed above, the place of use for License 7848 and the amount of water available to American Canyon under the 1996 Agreement is not relevant to the WSA’s conclusions about the adequacy of the Project water supply. The record supporting the Project EIR demonstrates that there is sufficient water to serve the Project under all reasonably foreseeable future conditions, and there is no need for American Canyon to “develop[] an alternative water source” to serve the Project.
KMT:sl
4010
CITY COUNCIL AGENDA
MARCH 21, 2023
STAFF REPORT
BUSINESS
ITEM NUMBER: 12.
TITLE
Annual Comprehensive Financial Report
RECOMMENDATION
Receive and file the Annual Comprehensive Financial Report and related communica+ons from the City's external auditor for Fiscal Year 2021-22.
CONTACT
Juan Gomez, Finance Director
BACKGROUND & ANALYSIS
A4er the conclusion of each fiscal year, an independent auditor (currently Richardson & Co.) reviews the repor+ng of the City’s financial statements in accordance with industry accoun+ng standards.
The result is an “Annual Comprehensive Financial Report (ACFR)”.
The City’s Fiscal Year 2021-22 ACFR was finalized on March 16, 2023 (A>achment 1). It includes financial statements for the City of American Canyon and the American Canyon Fire Protec+on District. It also contains the independent auditor’s report, which describes the scope of the audit as well as the auditor’s opinion on the financial statements. For the Fiscal Year 2021-22 ACFR, the City received an “unmodified” opinion. An “unmodified” opinion is only issued when there are no significant repor+ng issues, the financial statements are free of material misstatements, and informa+on is presented in accordance with Generally Accepted Accoun+ng Principles (GAAP). This opinion indicates that the City’s financial condi+on, posi+on, and opera+ons are fairly presented in the financial statements. This is important to financial statement users and provides comfort to the City’s creditors, while enabling the City to obtain better interest rates on any new debt issuances.
City management assumes full responsibility for the completeness and reliability of all of the informa+on presented in the ACFR. The City has established a comprehensive internal control framework designed to protect the City’s assets from loss, the4, or misuse and provide sufficient reliable informa+on that the City of American Canyon’s financial statements are in conformity with GAAP. The cost of internal controls should not outweigh the resul+ng benefits and internal controls are designed to provide reasonable assurance, not absolute assurance, that the financial statements will be free from material misstatements. City management asserts that, to the best of our knowledge and belief, the financial report is complete and reliable in all material respects. 4011
The Fiscal Year 2021-22 ACFR includes an introductory sec+on that profiles the City, discusses the local economy, recounts key projects, and details financial planning issues and future challenges, as well as other vital topics. Included in the report is the Cer+ficate of Achievement for Excellence in Financial Repor+ng presented to the City by the Government Finance Officers Associa+on for its prior year (Fiscal Year 2020-21). Staff has submi>ed the Fiscal Year 2021-22 ACFR for the same award and expects to receive it in time for presentation in next year’s ACFR.
The ACFR also includes a “Management Discussion and Analysis” sec+on, which provides financial highlights, an overview of the financial statements, and compares key financial data to the prior year. The conclusion of the report details a variety of supplemental financial data, debt and demographical sta+s+cs. Also included are four related communica+ons: “Management Le>er”, “Governance Le>er”, “Appropria+on Limit Tes+ng for the City”, and “Appropria+on Limit Tes+ng for the Fire District”. In these le>ers, the auditors iden+fied no material deficiencies in internal controls.
The “Management Le>er” noted ma>ers for considera+on that staff will be working on implementing in the next ACFR.
COUNCIL PRIORITY PROGRAMS AND PROJECTS
Organizational Effectiveness: "Deliver exemplary government services."
FISCAL IMPACT
The cost of the audit was consistent with the approved contract amount and the recommended ac+on will have no impact on the City's Fiscal Year 2022-23 Budget. A full discussion of the City’s financial status starts on Page 4 of the Fiscal Year 2021-22 ACFR.
Implied in all City Council Goals, Objec+ves, and Work Programs is the fundamental principle that the City will follow the City Council’s adopted Fiscal Policy and will exercise the utmost financial discipline and accountability. In accordance with the City’s adopted Fiscal Policy and pursuant to Sec+on 37208 of the Government Code, the City Manager is responsible for preparing an audited Comprehensive Financial Report each year.
ENVIRONMENTAL REVIEW
Not applicable.
ATTACHMENTS:
1. City of American Canyon Annual Comprehensive Financial Report FY 2021-22
2. City of American Canyon Management Letter FY 2021-22
3. City of American Canyon Governance Letter FY 2021-22
4. City of American Canyon Appropriations Limit Report FY 2021-22
5. American Canyon Fire Protection District Appropriations Limit Report FY 2021-22 4012
CITY OF AMERICAN
CANYON
AND
AMERICAN CANYON
FIRE PROTECTION
DISTRICT
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
for the fi scal year ended
June 30, 2022
American Canyon, California
www.cityofamericancanyon.org 4013
(This page intentionally left blank.)
4014
American Canyon, California
Napa County
City of
American
Canyon
CITY OF AMERICAN CANYON
AND
AMERICAN CANYON FIRE PROTECTION DISTRICT
ANNUAL COMPREHENSIVE FINANCIAL REPORT
for the fiscal year ended June 30, 2022
Prepared by the Finance Department
4015
(This page intentionally left blank.)
4016
CITY OF AMERICAN CANYON and
AMERICAN CANYON FIRE PROTECTION DISTRICT
Annual Comprehensive Financial Report
June 30, 2022
4017
(This page intentionally left blank.)
4018
CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
i
TABLE OF CONTENTS ..................................................................................................................... i
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................... iv Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association .................................................................................. xii List of Principal Officials ................................................................................................................ xiii Organizational Chart ....................................................................................................................... xiv
FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................ 1 Management’s Discussion and Analysis ........................................................................................... 4 Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ......................................................................................................... 17 Statement of Activities ............................................................................................................. 18 Fund Financial Statements:
Governmental Funds:
Balance Sheet ........................................................................................................................ 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................................................................................. 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ........................................................................................................ 25 Proprietary Funds:
Statement of Net Position ..................................................................................................... 26 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................................................................................... 27 Statement of Cash Flows ...................................................................................................... 28 Fiduciary Funds:
Statement of Fiduciary Net Position ..................................................................................... 29 Statement of Changes in Fiduciary Net Position .................................................................. 30 Notes to Basic Financial Statements ............................................................................................ 31
REQUIRED SUPPLEMENTARY INFORMATION
Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
General Fund .............................................................................................................................. 74 Fire District Operations Special Revenue Fund ......................................................................... 75 CDBG, CalHome and HOME Loan Development Special Revenue Fund ......................................................................................................................................... 76 State and Federal Grants – City Special Revenue Fund ............................................................. 77 4019
CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
ii
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – City Miscellaneous Plan (Unaudited) ............................................ 78 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Fire Safety Plan (Unaudited) .......................................................... 79 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Fire Miscellaneous Plan (Unaudited) ............................................. 80 Schedule of Changes in the Net OPEB Liability and Related Ratios – City Plan (Unaudited) ................................................................................................................... 81 Schedule of Changes in the Net OPEB Liability and Related Ratios – Fire Plan (Unaudited) ................................................................................................................... 82 Schedule of Contributions to the OPEB Plan – City Plan (Unaudited) ........................................... 83 Schedule of Contributions to the OPEB Plan – Fire Plan (Unaudited) ........................................... 84
SUPPLEMENTAL INFORMATION
Budgetary Comparisons, Major Capital Projects and Debt Service Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
City Capital Projects Fund .................................................................................................... 85 Affordable Housing Capital Projects Fund .......................................................................... 86 Nonmajor Governmental Funds
Combining Balance Sheet ............................................................................................................ 87 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................................... 92 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ................................................................................................................. 97 Internal Service Funds
Combining Statement of Net Position – Internal Service Funds ............................................... 118 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds .................................................................................... 119 Statement of Cash Flows – Internal Service Funds.................................................................... 120 Fiduciary Funds
Combining Statement of Fiduciary Net Position – Custodial Funds ......................................... 121 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................................................................................................... 122
STATISTICAL SECTION
Statistical Section Table of Contents ............................................................................................. 123 Financial Trends Information
Schedule of Net Position by Component – Last Ten Fiscal Years ............................................ 124 Schedule of Changes in Net Position – Last Ten Fiscal Years .................................................. 125 Schedule of Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................................................................................................... 127 4020
CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
iii
STATISTICAL SECTION (Continued)
Schedule of Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ..................................................................................................................... 128 Revenue Capacity Information
Own Source Tax Revenue by Source – Last Ten Fiscal Years .................................................. 129 Assessed Value of Taxable Property – Last Ten Fiscal Years ................................................... 130 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ....................................... 131 2021/22 Top Ten Property Taxpayers ........................................................................................ 132 2012/13 Top Ten Property Taxpayers ........................................................................................ 133 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................. 134 Debt Capacity Information
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ................................................... 135 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ...................................... 136 Computation of Direct and Overlapping Debt ........................................................................... 137 Computation of Legal Debt Margin – Last Ten Fiscal Years .................................................... 138 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................. 139 Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................ 140 Principal Employers – (Ten Largest) – Last Fiscal Years ......................................................... 141 Operating Information
Full-Time Equivalent City Government Employees by
Function/Program – Last Ten Fiscal Years ............................................................................ 142 Operating Indicators by Function/Program – Last Ten Fiscal Years ......................................... 143 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ....................................................................................................................................... 144 4021
(This page intentionally left blank.)
4022
iv
March 16, 2023
To the Honorable Mayor, Members of the City Council and Citizens of the City of American Canyon We hereby submit the Annual Comprehensive Financial Report of the City of American Canyon for the fiscal year ended June 30, 2022. The fiscal year covers financial transactions from July 1, 2021 to June 30, 2022 on a modified or full accrual basis, depending on the fund type. The City follows a policy of preparing a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America after the end of each fiscal year. An independent licensed certified public accounting firm audits these financial statements.
City management assumes full responsibility for the completeness and reliability of all of the information presented in this report. 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 provides sufficiently reliable information that the City of American Canyon's financial statements are in conformity with U.S. generally accepted accounting principles. The cost of internal controls should not out-weigh their benefits and the internal controls are designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. City management asserts that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Richardson and Co. LLP, a licensed certified public accounting firm, has audited the City of American Canyon's financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of American Canyon, for the fiscal year ended June 30, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting 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. Richardson and Co. LLP has concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion ("clean" opinion) that the City of American Canyon's financial statements for the fiscal year ended June 30, 2022 are fairly presented in conformity with U.S. generally accepted accounting principles. The independent auditor's report is presented as the first component of the financial section of this report.
Annual Comprehensive Financial Report (ACFR)
This ACFR contains financial information and data using the financial reporting format established for governments by the Governmental Accounting Standards Board (GASB). The GASB sets accounting and financial reporting standards for governments in the United States of America. The financial reporting standards require 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 the MD&A and should be read in conjunction with it.
Immediately following the report of the independent auditors, you will find the City of American Canyon's MD&A.
4023
v
Profile of the City and its Operations
Incorporated on January 1, 1992, the City of American Canyon is the second largest city in Napa County. The City's population as of January 1, 2022 was estimated to be 21,658 by the California State Department of Finance. American Canyon is located at the Southern end of the Napa Valley wine growing region in close proximity to the San Francisco Bay. It is bounded by the Napa River and a 500-acre wetland preserve to the west, the foothills of the Sulphur Springs Mountain Range to the east, the City of Vallejo to the south, the Napa Airport and numerous vineyards to the north.
The City operates under a council-manager form of government and is a general law city. Policy making and legislative authority are vested in the City Council. There are four elected Council Members and one elected Mayor. The Vice Mayor is selected annually by the Council. The non-partisan Mayor and City Council members serve staggered four-year terms. The Council's responsibilities include passing ordinances, adopting the City budget, appointing committees, and hiring the City Manager, Fire Chief and City Attorney. The City Manager implements the policies and ordinances of the City Council, appoints department heads, oversees and maintains the daily operations of the City.
The City provides a full range of municipal services including police and fire protection services through the American Canyon Fire Protection District; construction and maintenance of City streets, storm drains, bridges and similar infrastructure type assets; park maintenance and community recreation activities; short and longrange community planning; operation of water, wastewater, and recycled water utilities; and more. The City operates its water, wastewater, and recycled water systems in a fashion similar to private businesses, which is termed business-type activities in the financial statements.
The City's annual budget serves as the foundation for the City of American Canyon's financial planning and control system. Every year, each City department submits requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Council's Finance Committee followed by a presentation to the City Council. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget.
The budget is adopted by fund, function, and department. During the fiscal year the City Manager and Council periodically review the City's actual financial activity in relationship to the original budget, and as necessary, amends the original budget to reflect changing needs.
Factors affecting Financial Condition
The information presented in the financial statements is best understood when it is considered in context with the City's particular economic climate and with the City's plans for the future.
Napa Valley is considered by many to be North America's legendary wine, food, and wellness capital. The valley's vineyards are planted on gently rolling hills and are very picturesque. Their bucolic charm attracts large numbers of tourists. It is estimated that each year 5 million tourists visit more than 300 wineries scattered throughout the valley. The lodging, restaurants, wineries, and shopping located throughout the valley make tourism a major contributor to the local economy. The City of American Canyon, at the south end of Napa Valley, benefits from some tourism; however, these economic benefits are enjoyed much more by those cities in the north valley. In 2010 the City joined the Napa Valley Tourism Improvement District (NVTID) to increase tourism in American Canyon. The NVTID provides valley-wide as well as local tourist activity marketing and promotion.
In addition to the tourism related economic benefits of proximity to the Napa Valley, American Canyon benefits tremendously as a wine processing hub. Because of our strategic location at the southern end of Napa County and with easy access to state and interstate highways, American Canyon's industrial district is home to millions of square feet of wine processing, bottling, storage, and shipping space. Demand for space in this area is very high, with very little vacancy and there is new development underway. 4024
vi
Beginning in fiscal year 2013-14, the Council directed Staff to enter a three-year "Stabilization Plan" in order to ensure the long-term fiscal sustainability of the City's finances. During this three-year stabilization period, critical reductions in expenses were slowly restored as revenue growth allowed. The 2015-16 fiscal year marked the final year of this successful plan. Since then, the City has benefited from improvements in both the national and local economy and revenues continued increasing gradually until the onset of the Coronavirus Pandemic (COVID-19) in early 2020.
COVID-19 was expected to have a dramatic impact on revenues and the City responded by reducing expenditures budgeted and incurred. The actual impact at year-end FY 2019-20 was far less than anticipated.
With one-time Coronavirus Relief Funding, lower impact on actual revenues received, and the reduction in expenditures, the City ended that year near breakeven with a minimal General Fund deficit.
The pandemic continues to be part of our daily lives, but the cost-saving measures previously implemented by the City have resulted in favorable results for FY 2021-22. The passing of the American Rescue Plan Act (ARPA) of 2021 provided $350 billion in additional funding to state and local governments. The City received $4.9 million in ARPA funds and utilized the funds to improve infrastructure and parks. This includes street improvements, pedestrian and bike safety improvements, and skate park relocation and upgrades.
The City recently negotiated its Memorandum of Understanding (MOU) with employee bargaining units for five years after a one-year extension to the previous MOUs. The new MOUs will have an impact on salaries and benefits in the coming years.
Approximately 50% of general fund revenue received is from property taxes and are critical in supporting the cost of essential services provided by the City. For the FY 2021-22 the City budgeted a 4.5% increase in property taxes, and actually came in at a 6.9% increase. This was attributed to increasing values due to low supply and high demand, also fueled by low interest rates in the beginning of the fiscal year. Property tax is projected to increase an additional 4.3% in the 2022-23 fiscal year, in line with the total assessed valuation growth. Home values in American Canyon have had a median increase of value of 10.24% in 2022 on top of a 2021 increase of 11.40% with continued interest in industrial and residential development. With developable land selling and construction starting in the coming year, the City should experience further increases in assessed valuation and property tax revenues. New construction will also mean an increase in building permit revenue. However, recent interest rate increases could result in a tempering of sale prices and a reduction in higher priced homes sold as buyers begin to get priced out of those properties. The home mortgage market will continue to see high interest rates as long as inflation remains high, with the Federal Reserve signaling more hikes could follow until inflation comes down to their target rate of 2%.
The City's Transient Occupancy Tax (TOT) rate is 12%. FY 2021-22 TOT revenues have rebounded from the pandemic lows of FY 2020-21, nearly doubling to $1.6 million. For FY 2022-23, we have projected $1.6 million in TOT revenue, minimal to no growth is expected in TOT revenue as stubbornly high inflation begins to affect consumer discretionary travel spending, in addition to the unusual wet weather limiting travel plans to the area.
We expect that American Canyon will continue to benefit from tourism in the Napa Valley as life continues to return to a semblance of normalcy. We also expect additional hotel rooms currently under construction in American Canyon now and in the next three years will bring additional TOT revenue.
Sales tax revenues came in 13% higher in FY 2021-22 compared to the adopted budget. This was due in large part to consumer purchasing increasing rather than decreasing as the pandemic continued, as well as the influx of government stimulus to the economy. FY 2022-23 sales tax revenue was recently revised upward by an additional $2.8 million as a result of a State audit determining that certain revenues belong to the City instead of the county pools. As a result of this audit determination, we are anticipating FY 2022-23 sales tax revenue to be 90% higher than originally budgeted. However, because this includes one-time recovery revenue, we expect FY 2023-24 revenues to decrease and be more in line with historical growth. 4025
vii
Staff will continue to closely monitor and review updated economic forecasts for any new developments that may positively or negatively affect the City's budget.
Capital Improvement Program
The City of American Canyon's capital improvement program is a long-range program for major municipal construction projects. Key projects currently in progress include:
Knightsbridge Way Reconstruction and Water Main Improvements – The City is undertaking a project to replace the 8" water main on Knightsbridge Way between Danrose Drive and Elliott Drive, including all the courts: Regent Court, Park Lane, Lansford Court, Arden Court, and Linwood Lane. To maximize efficiency, once the underground work is complete, this project will also include the installation of ADA ramps, the road reconstruction of Knightsbridge Way, and a two-layer pavement treatment on the courts. It is anticipated that this project will advertise for construction by the end of 2023 with anticipated construction completion in Summer 2024.
Green Island Road Reconstruction – The Green Island Road Reconstruction & Widening Project will bring much-needed infrastructure improvements to the Green Island Industrial District. The upgrades will significantly benefit the businesses within the district, which are a vital component of the City’s economy. Established in 2019, the Green Island Road Community Facilities District will provide a significant portion of the funding for the project. In 2022, bids were advertised to underground existing overhead utilities. The construction contract was subsequently awarded to St. Francis Electric and work is anticipated to be completed in mid-2023. The final phases of the project—road reconstruction and Class I multi-use trail construction—will be advertised for bids after the utility undergrounding in late 2023, with estimated project completion in 2024.
Pavement Rehabilitation Projects – Road Repair and Accountability Act (also known as SB1) and Measure T, (the half cent Napa Valley County Sales Tax for Road Repairs) funds will be used to repair/rehabilitate various streets in American Canyon on an annual basis. The streets selected are based on our pavement management program, considering public safety, underground utility needs, and available funding.
Rancho Del Mar Paving and Utility Improvements – The Rancho Del Mar Subdivision is the oldest subdivision in American Canyon. In 2022, City Council prioritized federal American Rescue Plan Act (ARPA) funding to rehabilitate water and sewer utilities, provide for different pavement treatments including full reconstruction to local streets, upgrade curb ramps to ADA compliance, and implement thermoplastic striping and pavement markings. Streets included in this work are Rio Del Mar from Highway 29 to Carolyn Drive, all of Los Altos Place east of Carolyn Drive, Cassayre Drive, Flamingo Court, Del Rio Court, Alta Loma Drive, Joan Drive from Carolyn Drive to Los Altos Place, and Carolyn Drive from Rio Del Mar to Los Altos Place. Design will begin in 2023 with construction anticipated in 2024.
4026
viii
New Development
Key development projects include:
Broadway District Specific Plan – The Broadway District is the heart of American Canyon. The Broadway District Specific Plan (BDSP) is transforming Broadway into a livable, mixed-use, small-town neighborhood with quality development. The Broadway District Specific Plan was updated in 2021.
Development projects in the BDSP include the following:
o Home2Suites Hotel - A new 102-room Home2Suites hotel is under construction. o Hampton Inn Hotel - A new 112-room Hampton Inn hotel construction is anticipated to begin in 2023.
o Napa Cove - A 66-unit affordable apartment project is under construction. o Circle K - A Convenience store and gas station opened its doors to customers in February 2023. o Residences at Napa Junction - A 435-unit apartment project is under review. o Crawford/Broadway Townhomes - A 100-unit apartment townhome project is under review. o Chicken Guy Restaurant - A quick serve restaurant with a drive-thru service is under review by the Planning Commission.
o Sunstone - A mixed use residential/commercial project of 20 apartments located on Napa Junction Road is under review.
Watson Ranch – The 300-acre Watson Ranch Specific Plan (WRSP) includes a new hotel, 1,253 residential units, parks, and other amenities. Development projects in the WRSP include the following:
o Artisan at Watson Ranch - 98 single-family homes are available for sale today. o Lemos Pointe - A 186-unit affordable rental community is under construction. o Harvest at Watson Ranch - 219-unit single family homes are under construction. o The Hotel at the Napa Valley Ruins & Gardens - A 200-room resort hotel and 30 townhomes and flats were approved by the Planning Commission.
o Promontory at Watson Ranch - 216 single family homes with Accessory Dwelling Unit (ADU) options is under review.
Napa Logistics Park - The Napa Logistics Park is nearing buildout with completion of a 200,000 SF Amazon Distribution Center in September 2021 (Building 3). Building 4, a 700,000 SF warehouse was completed March 2021. A Pacific Gas and Electric (PG&E) 100,000 SF Regional Maintenance facility is under construction.
Commerce Court - A 330,000 SF wine warehouse on 35.85 acres was completed October 2020 at 1005 Commerce Court. A 217,000 SF wine warehouse (SDG 217) will begin construction in 2023. Giovannoni Logistics Center – A 2.4 million SF high cube wine warehouse business park on 208-acres, north of Green Island Road is under review by the City Council. Canyon Estates – A 35-single family large lot subdivision of custom homes is under construction. Custom home lot sales are ongoing.
Oat Hill Residential – A 291-unit, 20-acre multifamily development on the east side of Oat Hill is under construction.
Bell Products - A new business headquarters for Bell Products in the Green Island Industrial Park is under review.
4027
ix
Ecological Center - An exciting project to transform the Wetlands Edge Corporation Yard into an Ecological Education Center through a partnership between the American Community & Canyon Foundation and the City of American Canyon is under review.
Green Island Solar Farm - A solar farm with associated RV storage proposed on Highway 29, north of Green Island Road is under review.
Paoli/Watson Lane Annexation
The City is preparing an annexation application on 85 acres at the City’s northeast boundary. The annexation area would facilitate construction of Newell Road from its terminus in Watson Ranch to Highway 29. The Watson Lane residential area would remain in its current development pattern. Vacant land in the northern half of the annexation area could be considered for urban uses following annexation. An Environmental Impact Report that evaluates the project will be released for public review in March 2023.
General Plan Update
The City is preparing a comprehensive technical General Plan Update (GPU) for the first time since 1994. The General Plan is American Canyon’s long-term blueprint for development of the City and land outside its boundaries that bears relation to its planning. The GPU will ensure all components of the General Plan are internally consistent and current with State Law. An Environmental Impact Report that evaluates the GPU will be released for public review in Mid-2023.
The Housing Element component of the General Plan was approved in January 2023. Staff is working toward certification by the State Department of Housing and Community Development (HCD) by responding to input received in February 2023.
Water Supply
The critical droughts from 2020-2021 brought to the forefront the City's need to continue to seek out permanent, reliable water sources to serve its residents and businesses. The City receives nearly all of its water from the Department of Water Resources' (DWR) State Water Project (SWP). Generally, this "raw water" is treated at the City's Water Treatment Plant (WTP) and then distributed to residents and businesses in the City's Water Service Area (which is larger than the City limits proper). The City also maintains connections with the Cities of Napa and Vallejo, who are able to provide treated water supplies if necessary. The City's Urban Water Management Plan demonstrates that the City has sufficient water to meet projected needs in the next 20 years. However, the City could benefit from a greater variety of water sources, better water quality, and less expensive water sources. As such, the City is pursuing several important options, including participation in new, regional surface water projects and potable re-use of recycled water from our Water Reclamation Facility. In recent years, the City has invested heavily in maximizing both the water quality and quantity of recycled water produced at the Water Reclamation Facility. The City has been successful in reducing demand for potable water by as much as 21-acre feet per year through conversion of potable water, uses for irrigation to recycled water and permanent changes to landscape and irrigation techniques.
In 2017, the City joined as a member of the Sites Reservoir Project. The Sites Project is a new proposed “offstream” water storage reservoir that would hold approximately 1.8 million-acre feet. In fiscal year 2022-23, the City will continue to participate on the project team that is pursuing funding and ultimately, construction of this new water supply project. The City’s share of the Sites Reservoir Project is 4,000-acre feet per year.
In May 2018, the City Council authorized new water rates beginning January 2019. The water rates will increase in each of the subsequent five years, with the last increase scheduled for January 2023. The City will no longer collect a drought surcharge of two dollars per unit. The rate increases are required to meet operational requirements, construct improvements to existing aging infrastructure, and to establish funding necessary to pay for additional water purchases. City staff is working on developing a new rate structure in fiscal year 2022- 23, that will focus on all three of the City’s enterprise funds and anticipates having updated rates take effect in January 2024.
Cash Resources
The cash and investments held by the City are sufficient to move forward into the new fiscal year, conduct operations, and embark upon the planned capital asset improvement programs. Please see Note C – Cash 4028
x
and Investments beginning on page 38 of the ACFR.
Risk Management
The City limits its exposure to losses from unfavorable events, employee injuries, and from the risk of damages to City property by participating with other governments in an insurance pool wherein the risk of substantial monetary loss is transferred from the City to the insurance pool. Further information about this arrangement is included in the notes to the financial statements.
Long-Term Debt Administration
In accordance with the City's fiscal policy, the issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. The City may issue general obligation bonds, revenue bonds, certificates of participation or anticipation notes. The payback period of the debt is limited to the estimated useful life of the capital project or improvement. All debt service payments were made as required during the fiscal year, and the City complied with all required reserves and debt service covenants.
Postemployment Benefits
The City directly participates in the Public Employees Retirement System (PERS) of the State of California for all full-time employees. The City plans to fund each year's required contribution for its regular and public safety plans based on rates calculated by PERS after analyzing the city's workforce. With respect to retiree health care costs, the City's practice has been to pay the same premium for retired employees' health care as it does for active employees. The City plans to fund its actuarially required contribution (ARC). The City and Fire District have entered into irrevocable trusts with PERS to fund retiree health benefits. The City is considering contributing to an irrevocable trust for retirement benefits, but no decision has yet been made. The Fire District has decided not to participate. Additional information about the City's pension and other post-employment benefits plans are included in notes J and K to the financial statements and the required supplementary information section of this report. During 2017, the City completed negotiations with employees to reduce postemployment medical insurance benefits to future employees as they retire, which resulted in a decrease in long-term liability.
Awards
The City was awarded a Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) for its comprehensive annual financial report for the fiscal year ended June 30, 2021. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial report. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. In our opinion, the current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and it will be submitted to the GFOA to determine its eligibility for recognition.
The City was also awarded the Distinguished Budget Presentation Award by the GFOA for its fiscal year 2021-22 Annual Budget. This prestigious award recognizes conformance with the highest budget standards and is awarded based on both content and presentation criteria. These awards are valid for a period of one year only.
Acknowledgements
The preparation of this report would not have been possible without the capable and dedicated services of the Finance Team. The Mayor and City Council also warrant special recognition for their continued 4029
xi
support, leadership and high expectations for professionalism in overseeing the City of American Canyon's financial affairs.
Respectfully Submitted,
Jason B. Holley
City Manager
4030
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of American Canyon
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xii
4031
xiii
CITY OF AMERICAN CANYON
PRINCIPAL OFFICIALS
YEAR ENDED JUNE 30, 2022
CITY COUNCIL
Mayor ……………………………………………………………………………………………………………….. Leon Garcia Vice Mayor……………………………………………………………………………………….………………… Mariam Aboudamous Council Member ………………………..……………………………………………………………………… Mark Joseph Council Member ………………………………………………….……………………………………………. David Oro Council Member …………….……..………………………………………………………………………….. Pierre Washington ADMINISTRATIVE PERSONNEL
City Manager ………………….………………………………………….…………………………………….. Jason Holley Assistant City Manager …………………………………………………………………………………….. Maria Ojeda City Clerk ………………………………………………………………………………………………………….. Taresa Geilfuss Police Chief ……………………………………….…………………………………………………….……….. Rick Greenberg Fire Chief …………………………………………….……………………………………………..…….………. Mike Cahill City Attorney ………………………………….………………………………………………………….……… William Ross Finance Director……………………………………………………………………….………………….….… Lincoln Bogard Public Works Director…………………………………………………………..…………………….….….. Erica Ahmann‐Smithies Community Services Director ………………………………………….………………………….…….. Brent Cooper Parks and Recreation Director………………………………………………….………………….….…. Alexandra Ikeda 4032
CITY COUNCIL
PUBLIC WORKS UTILITIES AND
MAINTENANCE
COMMUNITY
DEVELOPMENT
PARKS AND
RECREATION
FIRE PROTECTION
DISTRICT
POLICE CHIEF
CITY MANAGER CITY ATTORNEY
CITY CLERK HUMAN
RESOURCES
FINANCE
ASSISTANT CITY
MANAGER
xiv
4033
(This page intentionally left blank.)
4034
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 INDEPENDENT AUDITOR’S REPORT
To the City Council
City of American Canyon, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of American Canyon, California’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon, California, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 4035
To the City Council
City of American Canyon, California
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis, budgetary comparison schedules, schedules of the proportionate share of the net pension liability, schedules of contributions to the pension plan, schedules of changes in the net OPEB liability and related ratios and schedules of employer contributions to the OPEB plan be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the 4036
To the City Council
City of American Canyon, California
3 information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
March 15, 2023
4037
MANAGEMENT'S DISCUSSION AND ANALYSIS
4 This section of the City of American Canyon's annual financial report presents our discussion and analysis of the City's financial performance during the fiscal year that ended on June 30, 2022. Please read it in conjunction with the City's audited financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
The City's total net position increased by about $4.8 million over the course of this year’s operations after conducting all City operations and programs. The Citywide Statement of Activities reports a $4.8 million increase in net position for Governmental Activities using full accrual accounting and Business-type Activities did not change significantly. The assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $374.6 million at the end of the 2022 fiscal year. The Citywide Statement of Net Position reports that $303.6 million is related to Governmental Activities and $71.0 million is related to Business-type Activities. Of that amount, $18.6 million (the unrestricted net position) may be used to meet the City's ongoing obligations and operating expenses for the next fiscal year.
Governmental Funds reported combined fund balances of $42.3 million at June 30, 2022, an increase of $1.5 million compared to the prior year. Of these fund balances, $0.4 million is non-spendable, $26.0 million is restricted, $8.3 million is committed, $5.2 million is assigned, and $2.3 million is unassigned.
Overall, city-wide revenues from all governmental and business-type activities were $52.1 million, a decrease of about $3.3 million compared to the prior year. This amount includes $1.2 million from capital grants and contributions for Governmental Activities and $1.8 million from Business-type Activities.
The City's total expenses for all programs in fiscal year 2021-22 was $47.3 million, an increase of $2.1 million compared to the prior year.
The General Fund ended fiscal year 2021-22 with a fund balance of $12.6 million, an increase of $0.4 million compared to the prior year of which $3.3 million was unassigned. The Fire District Operations Fund ended fiscal year 2021-22 with a $5.6 million fund balance, a decrease of $0.2 million compared to the prior year. The CDBG, Cal Home and HOME Loan Development Special Revenue Fund ended fiscal year 2021-22 with a fund balance of near breakeven and is unchanged compared to the prior year. The State and Federal Grants - City Special Revenue Fund ended fiscal year 2021-22 with a negative fund balance of $0.6 million and is unchanged compared to the prior year. The State and Federal Grants - City Special Revenue Fund ended fiscal year 2021-22 with a negative fund balance of $0.7 million and is unchanged compared to the prior year. The City Capital Projects Fund ended fiscal year 2021-22 with a fund balance of $0.1 million, which did not change significantly compared to the prior year. Other Governmental Funds reported a cumulative fund balance of $24.3 million available for special purposes, primarily infrastructure and capital asset additions. The City ended fiscal year 2021-22 with $25.0 million of available net position in its enterprise funds consisting of restricted and unrestricted net position. This is an increase of $0.6 million from the prior fiscal year. Internal Service Funds ended fiscal year 2021-22 with a cumulative unrestricted fund balance of $0.7 million and increase $0.5 million compared to the prior year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – a management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for non-major governmental funds and proprietary funds. The basic financial statements include two kinds of statements that present different views of the City:
The first two statements are government-wide financial statements that provide both long-term and short-term information about the City’s overall financial status. 4038
MANAGEMENT'S DISCUSSION AND ANALYSIS
5 The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. - The governmental funds statements tell how general government services such as public safety, community development, parks and recreation, public works and streets were financed in the short term as well as what remains for future spending.
- Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the City's water, wastewater and recycled water systems.
The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. In addition to these required elements, we have included a section with combining statements that provide details about our non-major funds, each of which are added together and presented in single columns in the basic financial statements.
Figure A-1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.
Figure A-1
Major Features of City of American Canyon's Government-Wide and Fund Financial Statements
Fund Statements
Government-Wide
Statements Governmental Funds Proprietary Funds
Scope Entire City government The activities of the City that are not proprietary or fiduciary, such as police, fire, streets,
general government, and community services
Activities the City operates
similar to private businesses:
the water, wastewater, and
recycled water funds and
internal service funds
Required financial
statements
Statement of net position Balance sheet Statement of net position Statement of activities Statement of revenues, expenditures, and changes in fund balances
Statement of revenues,
expenses, and changes in
net position
Statement of cash flows
Accounting basis
and measurement
focus
Accrual accounting and
economic resources focus
Modified accrual accounting and current financial
resources focus
Accrual accounting and
economic resources focus
Type of
asset/liability
information
All assets and liabilities, both
financial and capital, and shortterm and long-term
Only assets expected to be used up and liabilities
that come due during the year or soon thereafter;
no capital assets included
All assets and liabilities, both
financial and capital, and shortterm and long-term
Type of
inflow/outflow
information
All revenues and expenses
during the year, regardless of
when cash is received or paid
Revenues for which cash is received during or soon
after the end of the year; expenditures when goods
or services have been received and payment is due
during the year or soon thereafter
All revenues and expenses
during the year, regardless of
when cash is received or paid
4039
MANAGEMENT'S DISCUSSION AND ANALYSIS
6 Government-wide Statements
The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City's assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.
The two government-wide statements report the City's net position and how it has changed. The difference between the City's assets and liabilities is one way to measure the City's financial health or position.
Over time, an increase or decrease in the City's net position is an indicator of whether its financial health is improving or deteriorating, respectively.
The government-wide financial statements of the City are reported in two categories:
Governmental activities – All of the City’s basic services are included here, such as general government, police, fire, community development, parks and recreation, and public works. Property taxes, sales taxes, transient occupancy taxes, special and other taxes, user charges and fees, and state, local and federal grants finance these activities. Business-Type activities - The City charges fees to customers to help cover the costs of certain services. The City's water, wastewater, and recycled water enterprises are reported here.
Fund Financial Statements
The fund financial statements provide more detailed information about the City's most significant funds – not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. The City's major funds, including the General Fund; Fire District Operations; CDBG, CalHome and HOME Loan Development; State and Federal Grants – City; City Capital Projects; and Affordable Housing are reported in separate columns, and all other governmental funds are aggregated in a single column.
The City establishes other funds to control and manage money for particular purposes. Some funds are maintained to demonstrate that the City is properly using certain specific fees for their intended purpose (such as the City's impact fee funds).
Other funds are maintained for similar purposes but also demonstrate the City's ability to repay its long-term debt obligations, such as bonds.
The City has three kinds of funds:
Governmental funds – The City's basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps one determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds' statement, or on the subsequent page, that explains the relationship (or differences) between them.
Proprietary funds – There are two different types of proprietary funds. Enterprise funds are used to report the same functions reported as business-type activities in the government-wide financial statements: the City's Water, Wastewater, and Recycled Water Operations. Internal service funds are 4040
MANAGEMENT'S DISCUSSION AND ANALYSIS
7 an accounting device used to accumulate and allocate costs internally. During the 2015 fiscal year, the City created internal service funds. Proprietary funds provide the same type of information as the government-wide statements, only in more detail. The proprietary fund statements provide separate information for the City's Water, Wastewater, and Recycled Water Operations, which are considered major funds of the City.
Fiduciary funds - These funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of American Canyon’s own programs.
The accounting used for fiduciary funds is much like that used for proprietary funds.
FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Net Position. As summarized in Table A-1 below, the City's combined net position increased $4.8 million between fiscal years 2021 and 2022.
Table A-1
City of American Canyon's Net Position
(in millions of dollars)
Governmental
Activities
Business-Type
Activities Total
Total
Percentage
Change
2021 2022 2021 2022 2021 2022 2021-22
Current and other assets
58.4 59.9 28.3
29.1 86.7
89.0 2.7%
Capital assets 274.4
275.2 53.5
51.8 327.9
327.0 -0.3%
Total assets 332.8
335.1 81.8
80.9 414.6
416.0 0.4%
Deferred Outflow of Resources
5.2 6.5 1.1
1.5 6.3
8.0 27.0%
Long-term debt outstanding
29.5 22.3 10.9
8.3 40.4
30.6 -24.3%
Other liabilities
8.2 7.3 0.8
1.7 9.0
9.0 0.0%
Total liabilities
37.7 29.6 11.7
10.0 49.4
39.6 -19.8%
Deferred Inflows of Resources
1.6 8.4 0.2
1.4 1.8
9.8 434.6%
Net investment in capital assets 267.6
269.2 47.3
46.0 314.9
315.2 0.1%
Restricted
32.2 34.1 6.1
6.7 38.3
40.8 6.5%
Unrestricted
(1.0)
0.3 17.7
18.3 16.7
18.6 11.3%
Total net position 298.8
303.6 71.0
71.0 369.8
374.6 1.3%
The net position of the City’s governmental and business-type activities increased 1.3% to $374.6 million. The increase was primarily due to an increase in Grants and Contributions from COVID-19 pandemic relief. Approximately 84% of the City’s net position is invested in capital assets such as buildings, land, equipment and facilities. About $6.4 million of ongoing capital assets were purchased this fiscal year and are invested in projects such as the Devlin Road Extension Project ($3.9 million), contributed property from developers, and in various Internal Service Funds fleet vehicles, radios, and fleet operations equipment. The remaining 16% of net position is represented by restricted and unrestricted net position. Notable receivables are the $2.6 million in Taxes and $2.5 million from Utilities. Approximately $3.5 million of Intergovernmental Receivables include American Rescue Plan Act (ARPA) COVID-19 relief funding of $2.5 million, and grant funding for CIP of $0.8 million, plus 4041
MANAGEMENT'S DISCUSSION AND ANALYSIS
8 COPS funding and other minor receivables. About 77.5% of the City's total liabilities are represented by long-term obligations including pension liabilities, lease revenue bonds, capital leases and loans from the State of California. A more detailed list of long-term liabilities is found in Note G – Long-Term Liabilities on pages 52-56.
Changes in net position. The City's major sources of revenue and functional expenses are presented in charts 1 and 2. As summarized in Table A-2 on page 10, revenues for fiscal year 2021-22 totaled $52.1 million, a decrease of $3.3 million or 6.1% from the prior year. Grants and contributions revenue decreased $3.1 million primarily due to the one-time award from ARPA funding in fiscal year 2020-21 and capital contributions from developers. The City’s primary source of discretionary revenue is property taxes which totaled $17.3 million or 33% of total revenues for the year and increased by 7.5% over fiscal year 2020-21 due to continued improvement in assessed valuation during the recent pandemic recession. Sales tax revenue increased by $0.6 million or 13.6% to $5 million in fiscal year 2021-22, due to additional discretionary revenues from telecommuting and individual assistance aide.
Approximately $15.7 million or 30% of all City revenues were generated from water, wastewater, and recycled water service fees and other revenue.
Charges for services,
37%
Grants and contributions,
15%
Property taxes, 33%
Sales taxes, 10%
Franchise Taxes, 2% Other, 3%
Chart 1
Sources of Revenues
General & Other Prog
14%
Public Safety
32%
Storm Drain
1%
Public works
14%
Comm Dev
5%
Parks & Rec
6%
Water and Sewer
28%
Chart 2
Functional Expenses
4042
MANAGEMENT'S DISCUSSION AND ANALYSIS
9 The total cost for all programs and services in fiscal year 2021-22 was $47.3 million which includes a wide range of services such as public safety, public works, community development, parks and recreation programs, storm drain, water and wastewater treatment plants and related distribution and collection systems. Major types of expenditures by function are shown in Chart 2. As summarized in Table A-2, for fiscal year 2021-22, expenses increased by $2.1 million or 5%. In this fiscal year, the General Government expenses decreased by $0.3 million, a 4% decrease from the prior year largely due to increased public safety costs of $0.9 million, and removal of furlough savings of approximately $0.5 million. Water, Wastewater and Recycled Water expenses were $0.7 million higher compared to prior year at $12.8 million. This increase is mainly the result of increased costs for producing water.
The City’s largest operating expense was public safety services. The City’s cost to provide police and fire protection services was $15.2 million or 32.1% of the City’s total operating expenses followed closely by the water and sewer which collectively comprised $13.2 million or 27.9% of total expenses. Public Works and Storm Drain departments accounted for 14.4% of expenses, Parks and Recreation 5.7%, and Community Development 5.6%. The remaining 14.3% was expended on general City administration and other programs.
When all operations were concluded, governmental activities created a $4.8 million increase in net position and business-type activities did not change significantly for 2021-22.
4043
MANAGEMENT'S DISCUSSION AND ANALYSIS
10 Table A-2
Changes in the City of American Canyon's Net Position
(in millions of dollars)
Governmental
Activities
Business Type
Activities Total
Total
Percentage
Change
2021 2022 2021 2022 2021 2022 2021-2022
Revenues
Program revenues
Charges for services
6.0 5.7
13.4 13.7
19.4 19.4 0.0%
Grants and contributions -
operating
1.3 4.7
0.4 0.2
1.7 4.9 175.0%
Grants and contributions - capital
7.7 1.2
1.5 1.8
9.2 3.0 -67.4%
General revenues
Property taxes
16.1 17.3
-
-
16.1 17.3 7.5%
Franchise taxes
0.8 0.8
-
-
0.8 0.8 0.0%
Sales taxes
4.4 5.0
-
-
4.4 5.0 13.6%
Other
2.3 1.7
1.5 -
3.8 1.7 -55.3%
Total revenues
38.7 36.4
16.8 15.7
55.4 52.1 -6.1%
Expenses
General government
6.8 6.5
-
-
6.8 6.5 -4.0%
Public Safety
14.3 15.2
-
-
14.3 15.2 6.3%
Public works
6.2 6.5
-
-
6.2 6.5 4.8%
Community Development
1.7 2.2
-
-
1.7 2.2 29.4%
Parks and Recreation
2.8 2.7
-
-
2.8 2.7 -3.6%
Storm Drain
0.4 0.4
-
-
0.4 0.4 0.0%
Water
-
-
6.8 8.3
6.8 8.3 22.1%
Wastewater
-
-
6.0 4.9
6.0 4.9 -18.3%
Other
0.2 0.3
-
0.3 0.2
0.6 -100.0%
Total expenses
32.4 33.8
12.8 13.5
45.2 47.3 4.6%
Excess (deficiency) before transfers
6.2 2.6
4.0 2.2
10.3 4.8 -53.4%
Transfers
2.1 2.2
(2.1)
(2.2)
-
- 0.0%
Increase(decrease) in net
position
8.3 4.8
1.9 (0.0)
10.3 4.8 -53.4%
Net position, beginning
290.5 298.8
69.1 71.0 359.5 369.8 2.8%
Net position, ending
298.8 303.6
71.0 71.0 369.8 374.6 1.3%
4044
MANAGEMENT'S DISCUSSION AND ANALYSIS
11 City Program Costs
Table A-3 presents the cost of each of the City's six largest programs: Public Safety, Public Works, Parks and Recreation, Water, Wastewater, and Community Development.
Table A-3
Cost of City of American Canyon's Programs
(in millions of dollars)
Total Cost of Services
Percentage
Change
2021 2022 2021-2022
Public Safety 14.3 15.2 6.3%
Public Works (includes Storm drain) 6.6 6.9 4.5%
Community Development 1.7 2.2 29.4%
Parks and Recreation 2.8 2.7 -3.6%
Water 6.8 8.3 22.1%
Wastewater 6.0 4.9 18.3%
Recycled Water - 0.3 100.0%
All other 7.0 6.8 -2.9%
Total $ 45.2 $ 47.3 4.6%
The cost of all programs this year was $47.3 million, an increase of $2.1 million, or 4.6% compared with the prior year. For governmental activities, overall program costs increased $1.4 million, or 4.3%, mostly due to increases in public safety and general government.
Governmental Activities
As detailed on the Statement of Activities, the City’s governmental program expenses totaled $33.8 million during the year. Program revenues, including grants, totaled $11.6 million leaving the City to fund the balance of $22.2 million with general revenues. Program revenues decreased by $3.4 million, while expenses increased by $1.4 million over the prior year. The decrease in the Program Revenues was due to one-time federal stimulus funding through the ARPA program ($4.9 million) and developer contributions ($3.6 million) received in FY2020-21.
Business-Type Activities
At 2021-22 fiscal year-end, the net position for the City’s enterprise funds or business-type activities, the City’s Water, Wastewater, and Recycled Water funds, did not change significantly from the prior year. In fiscal year 2021-22, charges for services increased by approximately $0.3 million or 2.2% compared to the prior year. Business-type revenues decreased by 6.5% overall compared to FY 2020-
21. The decrease was primarily due to unrealized investment losses on the City’s pooled investment portfolio offset by increases of $0.3 million in charges for services. Water fund expenses increased by $1.5 million or 22.1% compared to fiscal year 2020-21 and was primarily from increases in payments to the City of Vallejo for water rights and water purchases. Wastewater fund expenses decreased by $1.1 million primarily due to staff vacancies. The Recycled Water fund had very little activity for the fiscal year except asset transfers. This will change upon completion of the Enterprise Rate Study and the establishment of recycled water rates and charges.
4045
MANAGEMENT'S DISCUSSION AND ANALYSIS
12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At the end of fiscal year 2021-22, the City’s governmental funds had a combined fund balance of $42.3 million, about $1.5 million more than the prior year. This can be attributed to community development activities for planning and building, which added $1.8 million of restricted fund balance in 2021-22; and the General Fund’s better than expected performance, due to combined cost cuts and vacancy savings increased fund balance $0.4 million. The Fire District Operations fund balance decreased by $0.2 million or 2.4% as a result of fiscal year 2021-22 operations.
The City’s Cash and Investment accounts increased by $5.1 million compared to the prior year, totaling $78.9 million at fiscal year-end. The City’s Restricted Cash and Investments totaled $7.0 million of that balance. Fiduciary Funds comprised another $8.1 million of that balance. The Water and Wastewater enterprise funds ended the year with $27.8 million in cash and investments available for future use, of which $6.7 million is restricted.
The City’s General Fund had a deficiency of revenues over expenditures of $1.9 million before other financing sources. General Fund Property Taxes increased by $0.9 million, Sales Taxes increased by $0.3 million, Other Taxes increased $1.0 million. Charges for Services increased by $0.5 million compared to the prior year. The City’s General Fund Expenditures increased by $2.0 million to $22.3 million mostly due to increase in salary and benefits costs as vacant positions became filled ($0.5 million), and the ending of furloughs for employees ($0.5 million); contract police services with the Napa County Sheriff’s Office ($0.5 million). The Transfers in from Other Funds decreased by $0.2 million compared to the prior year mostly due to lower transfers to the General Fund, FY2020-21 included a $0.2 million CARES Act transfer from the Federal Grants Fund for police services. After including interfund transfers, the General Fund ended the fiscal year with an excess of $0.4 million.
The City’s non-major governmental funds ended the fiscal year with a consolidated fund balance of $24.3 million. This entire fund balance amount is restricted with externally enforceable legal restrictions.
General Fund Budgetary Highlights
Over the course of the year, the City Council amended the City budget to fund new projects, avoid cost overruns, to account for unanticipated revenues. Additionally, adjustments were made as a result of the mid-year budget review. At year-end, including all adjustments, actual General Fund expenditures, were $2.1 million less than final budget amounts. Salary and benefit savings were the largest item $0.5M followed by legal and professional services $0.5M.
The General Fund’s fund balance increased by $0.4 million from June 30, 2021 to June 30, 2022. The General Fund’s primary source of discretionary revenue is property taxes which totaled $12.2 million or 59.8% of total revenues for the year and increased by 7.4% over the prior year. This was over budget $0.1 million. Non-property taxes came in over budget by $0.6 million and Charges for Services were $0.1 million more than the final budget.
4046
MANAGEMENT'S DISCUSSION AND ANALYSIS
13 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2022, the City had invested $327.0 million (net of accumulated depreciation) in a broad range of capital assets, including land, vehicles, equipment, the water, wastewater, and recycled water systems, streets, and other capital assets (see Table A-4). This amount represents a net decrease, after additions and deductions, of about $0.9 million or -0.3% compared to the prior fiscal year.
Additional information can be found in the notes to the financial statements, Note F – Capital Assets pages 48-51.
Table A-4
City of American Canyon's Capital Assets
(net of depreciation, in millions of dollars)
Governmental
Activities
Business-type
Activities Total
Total
Percentage
Change
2021 2022 2021 2022 2021 2022 2021-22
Land $10.2 $ 10.2 $ 2.2 $ 2.2 $ 12.4 $ 12.4 -0.1%
Construction in progress
7.9 12.7
7.6 8.9
15.5 21.6 39.4%
Right of ways 165.2 165.3 - - 165.2 165.3 0.0%
Buildings and Improvements
28.6 26.9
3.1 2.9
31.7 29.8 -6.0%
Machinery and Equipment
2.7 2.5
1.0 0.8
3.7 3.3 -10.8%
Water utility system
19.1 17.8
19.1 17.8 -6.8%
Wastewater system
16.7 15.6
16.7 15.6 -6.6%
Recycled water system 3.8 3.6 3.8 3.6 -5.3%
Infrastructure system 59.6 57.4 59.7 57.4 -3.9%
Leases 0.2 0.2 0.2 0.2 0.0%
Total $274.4 $275.2 $53.5 $51.8 $327.9 $327.0 -0.3%
Long - Term Debt
At the end of fiscal year 2021-22, the City had about $11.1 million in long-term debt obligations outstanding. Of the $11.1 million, $5.4 million relates to the City’s business-type activities and the remaining $5.7 million is applicable to governmental type financing activities. The remaining other longterm debt of $19.5 million are estimated employee benefits payable by the City. The City’s componentunit, the City of American Canyon’s Fire Protection District, has one long-term debt obligation from green energy upgrades of $0.3 million. It also has a $2.1 million liability for uninsured workers compensation claims.
4047
MANAGEMENT'S DISCUSSION AND ANALYSIS
14 For governmental type activities, the major long-term debt year-end balances consist of a refinanced $4.6 million financing agreement to purchase a commercial office building that was transformed into City Hall, and $0.5 million for green energy projects benefiting City Hall.
The City and Walmart agreed to share the cost of the traffic light and improvements at SR29. Walmart constructed the street light at a cost of $1.6 million and the City has agreed to reimburse Walmart for
75.85% of the cost or $1.2 million. The City reimbursed Walmart $179,796 for interest expense occurred in 2013. This was originally reported as a reduction in principal and no accrual of interest due was made. Management corrected this in FY2020-21 which had a $0.7 million increase in liability owed.
The City made the full repayment from the Traffic Impact Fee Fund in FY2021-22.
For business-type activities, major long-term debt year-end balances are comprised of green energy projects for the benefit of Water enterprises of $1.2 million and Wastewater enterprises of $3.0 million; a $0.7 million State Revolving Fund loan used for construction of the City’s wastewater treatment plant facility; and a $0.4 million State loan for water system improvement. The City has no bonded debt outstanding for its business-type activities.
Additional information about the City's long-term obligations can be found in the notes to the financial statements, Note G – Long Term Liabilities, on pages 52-56.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
With continued growth in the second half of 2021, U.S. GDP then contracted in the first two quarters of 2022. The contraction was attributed to the omicron variant of COVID-19 and the tapering of government spending. Government assistance payments to households and businesses all decreased as provisions of several federal programs expired. Supply chain issues continue to persist, with many logistics managers anticipating the supply chain not returning to normal until 2024 or after. These supply chain issues create production delays for products, creating limited supply, and while demand also remains high, this causes prices to go up. Inflation in the U.S. remains stubbornly high. Price increases in energy, food, and housing are having significant impacts on household budgets leaving them with little for discretionary spending. The Federal Reserve continues to raise interest rates to battle high inflation, unfortunately high interest rates increase the cost of home mortgages, the cost of borrowing for businesses and could have a negative impact on the economy. The greater risk in the short to medium term is this persistent high inflation, with the Federal Reserve continuing to raise rates until inflationary pressures subside.
The unemployment rate in California continues to decline. As of December 2022, the Employment Development Department reports a 3.7% unemployment rate. Restaurants and the hotel industry has seen some of strongest employment gains as these sectors were the hardest hit during the pandemic, significant increases have also been seen in the construction and health care sectors. Employers in the state have struggled to hire workers and fill positions. Since October 2021, there have been more job openings in California that there are workers to fill these positions, meaning that worker availability has been the primary constraint on job growth in the state.
American Canyon’s sales tax receipts from April 2022 through June 2022 were 7.6% above the same period in 2021. Excluding reporting aberrations, actual sales were up 8.5%. Results reflected measurable improvement over lows one year ago, which had suffered due to COVID-19 impacts.
Casual dining restaurants, which had severe access restrictions last year continued to report increases year over year, with Q2 2022 reporting a 12.3% increase. Net of aberrations, taxable sales for all of Napa County grew 14.2% over the comparable time period; the Bay Area was up 11.7%.
4048
MANAGEMENT'S DISCUSSION AND ANALYSIS
15 Approximately 50% of general fund revenue received is from property taxes. The annual CPI granted was 2.00% almost double the 1.036% granted last year. The year over year increase in citywide assessed valuation was $240.4 million, $78 million more than last year’s $162 million increase. This growth was on the strength of industrial uses which were offset by vacant use declines as newly developed properties transition from vacant to other permanent uses. New construction throughout the City continues as building supplies shortages have subsided and demand for single family homes in the area is still strong. Many single family and multifamily residential projects are currently underway which will add to the overall assessed valuation in future years as homes are sold.
Detached Single Family Residence – City of American Canyon Year
D‐SFR
Sales
Median
Price
%
Change
2017 188 $498,500 10.78%
2018 175 $525,000 5.32%
2019 186 $515,000 ‐1.90%
2020 165 $570,000 10.68%
2021 185 $635,000 11.40%
2022 93 $700,000 10.24%
With the first 7 months of sales data processed for 2022, SFRs are selling for 9.06% more than in the previous calendar year. Prices for the full calendar year 2021 increased 11.40%. The median price of all SFRs in 2022 is $700,000 which is $62,000 higher than the peak price experienced in 2006 at $638,000. The increased sale prices exceeded the previous historical high for the first time. Increased prices were driven by fewer properties offered for sale and new developments with higher price points in sales transactions. These factors contributed significantly to the growth experienced between tax years. Current trends indicate a tempering of sales prices resulting from higher interest rates, as well as a reduction in the number of transactions overall.
2022-23 Taxable Property Values:
Combined Values Total
Total Values $3,683,110,260
Total Exemptions $78,329,328
Net Total Values $3,604,780,932
The City anticipates continued increases in assessed valuation due to growing interest in industrial and residential development. Key development projects include the Broadway District Specific Plan, the Giovannoni Logistics Center, Canyon Estates, Oat Hill Residential multi-family residences, and continued development of Napa Logistics Park and Watson Ranch (the long-planned mixed-use commercial/retail town center). The City is also embarking on a General Plan Update, American Canyon’s blueprint for development of the City and any land outside its boundaries that bears relation to its planning.
4049
MANAGEMENT'S DISCUSSION AND ANALYSIS
16 CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, City of American Canyon, 4381 Broadway Street, Suite 201, American Canyon, California 94503.
4050
BASIC FINANCIAL STATEMENTS
4051
(This page intentionally left blank.)
4052
CITY OF AMERICAN CANYON
Statement of Net Position
June 30, 2022
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments 42,089,748 $ 21,632,579 $ 63,722,327 $ Restricted cash and investments 290,941 6,747,589 7,038,530 Taxes receivable 2,561,400 2,561,400
Accounts receivable, net 2,557,333 782,578 3,339,911
Internal balances 1,887,151 (1,887,151)
Interest receivable 147,007 15,525 162,532
Due from other governments 3,465,341 3,465,341
Property held for resale 567,773 567,773
Prepaid expenses and other assets 425,385 5,646 431,031 Loans receivable, net 7,676,895 7,676,895
Capital assets:
Non-depreciable 11,100,978 188,095,906 199,196,884
Depreciable, net of accumulated depreciation 40,723,377 87,069,272 127,792,649 Total capital assets 51,824,355 275,165,178 326,989,533 TOTAL ASSETS 80,895,876 335,059,397 415,955,273
DEFERRED OUTFLOWS OF RESOURCES
Pension plan 3,410,402 558,462 3,968,864
OPEB plans 3,102,325 891,706 3,994,031
TOTAL DEFERRED OUTFLOWS OF RESOURCES 6,512,727 1,450,168 7,962,895
LIABILITIES
Accounts payable 1, 1,017,289 415,404 2,432,693
Accrued expenses 572,152 381,178 953,330
Unearned revenue 5,153,248 5,153,248
Accrued interest payable 18,692 21,972 40,664
Deposits 113,739 204,227 317,966
Long-term liabilities:
Due within one year
Bonds, leases and contracts 1,012,856 118,923 1,131,779 Compensated absences 133,094 664,470 797,564
Workers compensation claims and judgments 2,133,981 2,133,981 Due in more than one year
Bonds, leases and contracts 5, 4,447,297 555,627 10,002,924 Compensated absences 96,597 83,863 180,460
Net pension liability 1,156,694 7,923,101 9,079,795
Net OPEB liability 1,467,792 5,799,544 7,267,336
TOTAL LIABILITIES 9,935,716 29,556,024 39,491,740
DEFERRED INFLOWS OF RESOURCES
Pension plan 1,118,250 6,207,396 7,325,646
OPEB plans 2,215,194 296,432 2,511,626
TOTAL DEFERRED INFLOWS OF RESOURCES 8,422,590 1,414,682 9,837,272
NET POSITION
Net investment in capital assets 269,180,380 45,949,422 315,129,802 Restricted for:
Public safety 1,445,932 1,445,932
Public works 15,210,975 15, 210,975
Storm drain projects 6,581,003 6,581,003
Community development, planning and building 8,530,085 8,530,085 Parks 2,101,231 2,101,231
Capacity expansion 6,747,589 6,747,589
Other activities 234,955 234,955
Unrestricted 18,298,635 308,949 18,607,584
TOTAL NET POSITION $ 70,995,646 303,593,510 $ 374,589,156 $ The accompanying notes are an integral part of these financial statements. 17 4053
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary government
Governmental Activities
General government $ 622,830 6,491,043 $ 60,758 $
Public safety 1,592,796 15,225,172 251,696
Public works 6,545,982 916,039 4,343,030 1,217,396 $
Community development 1,883,673 2,172,416 90,709 20,366 Parks and recreation 2,682,143 671,863
Storm drain 365,855 1,976
Int on long-term debt 292,804
TOTAL GOVERNMENTAL ACTIVITIES 5,687,201 33,775,415 4,748,169 1,237,762 Business-type activities
Water 8,412,016 8,284,697 240,304 1,252,878
Wastewater 4,824,937 4,958,917 573,335
Recycled Water 478,915 273,011
Total business-type activities 13,516,625 13,715,868 240,304 1,826,213 TOTAL PRIMARY GOVERNMENT $ 19,403,069 47,292,040 $ 4,988,473 $ 3,063,975 $ General revenues:
Taxes:
Property taxes, levied for general purposes
Franchise taxes
Sales taxes
Other taxes
Unrestricted investment earnings
Other
Transfers, net
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
The accompanying notes are an integral part of these financial statements.
Program Revenue
CITY OF AMERICAN CANYON
Statement of Activities
For the Year Ended June 30, 2022
18 4054
Governmental
Activities
Business-type
Activities Total
$ (5,807,455) (5,807,455) $
(13,380,680) (13,380,680)
(69,517) (69,517)
(177,668) (177,668)
(2,010,280) (2,010,280)
(363,879) (363,879)
(292,804) (292,804)
(22,102,283) (22,102,283)
$ 1,620,501 1,620,501
439,355 439,355
205,904 205,904
2,265,760 2,265,760
2,265,760 (22,102,283) (19,836,523)
17,264,929 17,264,929
839,554 839,554
5,000,961 5,000,961
2,388,956 2,388,956
(254,532) (1,303,678) (1,558,210)
176,844 524,021 700,865
(2,225,797) 2,225,797
(2,303,485) 26,940,540 24,637,055
(37,725) 4,838,257 4,800,532
71,033,371 298,755,253 369,788,624
$ 70,995,646 303,593,510 $ 374,589,156 $
Net (Expense) Revenue and Changes in Net Position
Primary Government
19 4055
General Fund
Fire District
Operations
Special
Revenue
CDBG,
CalHome and
HOME Loan
Development
Special
Revenue
State and
Federal
Grants - City
Special
Revenue
ASSETS
Cash and investments 8,423,660 $ 5,783,780 $ 40,823 $ 2,456,396 $ Restricted cash and investments
Taxes receivable 103,423 1,538,571
Accounts receivable, net 32,344 545,989
Interest receivable 11,518 111,407 68
Due from other governments 29,214 3,368,880
Due from other funds 2,881,015 19,076
Property held for resale 417,503
Prepaid expenditures and deposits 24,911
Loans receivable, net 1,535 2,359,643
TOTAL ASSETS 13,973,805 $ 5,950,141 $ 2,400,534 $ 5,825,276 $
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:
Accounts payable 715,702 $ 102,218 $ 206,789 $
Accrued expenses 135,652 180,452
Unearned revenue 220,711 4,932,537
Deposits 113,739
Due to other funds 81,475 427,585
TOTAL LIABILITIES 1,230,604 319,345 5,566,911
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 156,646 2,359,643 $ 919,852
TOTAL DEFERRED INFLOWS
OF RESOURCES 156,646 2,359,643 919,852
FUND BALANCES
Nonspendable:
Property held for resale 417,503
Prepaid expenditures and deposits 24,911
Restricted for:
Public safety 149,694 227,857
Public works
Storm drain projects
Community development, planning and building 614,026 40,891 Parks
Other activities 97,558
Committed 7,000,440 1,267,279
Assigned 4,135,660 1,000,000
Unassigned 3,282,423 (661,487)
TOTAL FUND BALANCES (DEFICITS) 12,586,555 5,630,796 40,891 (661,487)
TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES 13,973,805 $ 5,950,141 $ 2,400,534 $ 5,825,276 $ The accompanying notes are an integral part of these financial statements.
Major Funds
CITY OF AMERICAN CANYON
Balance Sheet
Governmental Funds
June 30, 2022
20 4056
City Capital
Projects
Affordable
Housing
Capital
Projects
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$ 91,043 368,119 $ 23,685,876 $ 40,849,697 $
290,941 290,941
919,406 2,561,400
180,101 1,120 759,554
22,434 156 145,583
67,247 3,465,341
153,435 3,053,526
150,270 567,773
24,911
92,725 5,222,992 7,676,895
$ 5,465,581 368,119 $ 25,412,165 $ 59,395,621 $
$ 20,757 263,736 $ 1,309,202 $
245,514 561,618
5,153,248
113,739
276,826 785,886
266,271 540,562 7,923,693
$ 535,898 5,222,992 9,195,031
535,898 5,222,992 9,195,031
417,503
24,911
1,380,661 1,003,110
101,848 14,605,914 14,707,762
6,579,027 6,579,027
242,589 73,273 970,779
2,101,231 2,101,231
250,993 153,435
8,267,719
5,238,734 103,074
2,337,577 (283,359)
242,589 101,848 24,335,705 42,276,897
$ 5,465,581 368,119 $ 25,412,165 $ 59,395,621 $
Major Funds
21 4057
(This page intentionally left blank.)
4058
CITY OF AMERICAN CANYON
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2022
Total fund balance, governmental funds $ 42,276,897
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the fund financial statements, but are reported in the governmental activities of the Statement of Net Position. 275,165,178
Revenues and loans receivable, which are deferred on the fund balance sheets because they are not available currently, are recognized as revenue in the Statement of Activities. 9,195,031 Internal service funds are used by management to charge the costs of activities to individual funds. The assets and liabilities of internal service funds are included in governmental activities in the Statement of Net Position. This amount excludes long-term assets and liabilities reported separately below. 796,748 Long-term assets and liabilities are not due and payable in the current period and are not included in the fund financial statements, but are included in the governmental activities of the Statement of Net Position.
Prepaid rent and deposits 371,000
Accrued interest payable (21,972)
Bonds, leases and contracts (5,674,550)
Compensated absences (748,333)
Uninsured claims (2,133,981)
Net pension liability (7,923,101)
Net OPEB liability (5,799,544)
Employee pension differences to be recognized in the future as pension expense are reported as deferred outflows and inflows of resources on the Statement of Net Position. (2,796,994) Employee OPEB differences to be recognized in the future as OPEB expense are reported as deferred outflows and inflows of resources on the Statement of Net Position. 887,131 NET POSITION OF GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION $ 303,593,510 The accompanying notes are an integral part of these financial statements. 22 4059
General Fund
Fire District
Operations
Special
Revenue
CDBG,
CalHome and
HOME Loan
Development
Special
Revenue
State and
Federal
Grants - City
Special
Revenue
REVENUES
Property taxes $ 5,125,894 12,162,299 $
Sales taxes 3,095,329
Other taxes 696,626 2,808,307
Special assessments
Fines and forfeitures 100,682
Licenses and permits 761,858
Intergovernmental 93,531 53,626 $ 3,923,345 $
Charges for services 774,326 1,649,843
Use of money and property (67,837) (846,829) 106
Other 182,019 505,632 37,083
TOTAL REVENUES 20,330,652 6,711,028 90,815 3,923,345
EXPENDITURES
Current:
General government 6,643,362
Public safety 6,852,495 7,949,173
Public works 2,306,473 266,973
Community development 2,135,066 64,075
Parks and recreation 2,717,250
Storm drain 380,895
Debt Service:
Principal
Interest and other charges
Capital outlay 81,475 124,864
TOTAL EXPENDITURES 22,257,083 6,933,970 64,075 266,973
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (222,942) (1,926,431) 26,740 3,656,372
OTHER FINANCING SOURCES (USES)
Sale of assets 10,000
Transfers in 2,433,742
Transfers out (135,380) (3,699,257)
TOTAL OTHER FINANCING
SOURCES AND USES 2,308,362 (3,699,257)
NET CHANGE IN FUND BALANCES 381,931 (222,942) 26,740 (42,885) Fund balances (deficits), beginning of year 5,853,738 12,204,624 14,151 (618,602) FUND BALANCES (DEFICITS), END OF YEAR $ 5,630,796 12,586,555 $ 40,891 $ (661,487) $ The accompanying notes are an integral part of these financial statements Major Funds
CITY OF AMERICAN CANYON
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
23 4060
City Capital
Projects
Affordable
Housing
Capital
Projects
Nonmajor
Governmental
Funds
Total
Governmental
Funds
17,288,193 $
1,885,379 $ 4,980,708
3,504,933
665,443 665,443
100,682
761,858
1,064,944 5,135,446
$ 2,209,777 22,105 4,656,051
(120,531) 336 (1,034,755)
$ 3,138 26,000 753,872
25,579 26,000 5,705,012 36,812,431
129,894 6,773,256
14,801,668
107,000 707,312 3,387,758
3,500 45,000 2,247,641
3,232 2,720,482
380,895
1,269,867 1,269,867
958,754 958,754
4,755,025 4,961,364
45,000 4,862,025 3,072,559 37,501,685
(19,421) (4,836,025) 2,632,453 (689,254)
10,000
4,718,436 288,815 7,440,993
(1,380,559) (5,215,196)
4,718,436 (1,091,744) 2,235,797
(19,421) (117,589) 1,540,709 1,546,543
262,010 219,437 22,794,996 40,730,354
$ 242,589 101,848 $ 24,335,705 $ 42,276,897 $
Major Funds
24 4061
CITY OF AMERICAN CANYON
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2022
Net change in fund balances - total governmental funds: $ 1,546,543 Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the Statement of Activities reports only a portion of the outlay as expense.
The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period.
Capital outlay 4,961,364
Condemnation deposit 107,000
Depreciation expense (4,356,105)
Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the Statement of Activities when earned. (265,794) Governmental funds report debt proceeds as current financial resources. In contrast, the Statement of Activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the Statement of Activities treats such repayments as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments, net of amortization of deferred amount on refunding. 1,269,867
Internal service funds are used by management to charge the costs of activities to individual funds. The net revenue of certain internal service funds is reported with governmental activities. 516,017 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:
Change in prepaid rent (6,000)
Change in deferred outflows of resources-pension plan 212,407 Change in deferred outflows of resources-OPEB plans 1,067,002 Change in accrued interest payable 665,988
Change in compensated absences 34,616
Change in uninsured claims (497,100)
Change in net pension liability 6,252,672
Change in net OPEB liability 115,269
Change in deferred inflows of resources-pension plan (5,886,667) Change in deferred inflows of resources-OPEB plans (898,822) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 4,838,257 The accompanying notes are an integral part of these financial statements. 25 4062
CITY OF AMERICAN CANYON
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
ActivitiesWater Wastewater
Recycled
Water Total
Internal
Service Funds
ASSETS
Current assets:
Cash and investments 13,349,357 $ 7,733,712 $ 549,510 $ 21,632,579 $ 1,240,051 $ Accounts receivable, net 1,782,851 736,290 38,192 2,557,333 23,024 Interest receivable 14,611 914 15,525 1,424
Due from other funds 114,272 114,272
Prepaid expenses 2,652 2,987 7 5,646 29,474
Total current assets 15,134,860 8,601,872 588,623 24,325,355 1,293,973 Non-current assets:
Restricted cash and investments 6,284,390 463,199 6,747,589 Advances to other funds 129,402 5,412,281 5,541,683
Capital assets:
Non-depreciable 5,040,494 6,049,050 11,434 11,100,978
Depreciable, net of accumulated depreciation 18,289,918 18,146,917 4,286,542 40,723,377 929,269 Total non-current assets 29,744,204 30,071,447 4,297,976 64,113,627 929,269 TOTAL ASSETS 44,879,064 38,673,319 4,886,599 88,438,982 2,223,242
DEFERRED OUTFLOW OF RESOURCES
Pension plan 250,196 308,266 62,752 558,462
OPEB plan 445,384 446,322 82,259 891,706
Total deferred outflows of resources 754,588 695,580 145,011 1,450,168
LIABILITIES
Current Liabilities:
Accounts payable 172,944 816,123 28,222 1,017,289 106,202 Accrued expenses 63,135 318,043 381,178 10,534
Accrued interest payable 18,692 18,692 87
Due to other funds 783,582 1,418,580 2,202,162 179,750
Deposits 160,042 44,185 204,227
Compensated absences, current portion 63,885 69,209 133,094 16,963 Bonds, notes and loans payable, current portion 876,722 136,134 1,012,856 77,552 Total current liabilities 2,913,051 2,028,225 28,222 4,969,498 391,088 Non-current liabilities:
Advances from other funds 5,541,683 5,541,683
Compensated absences, non-current portion 46,388 50,209 96,597 Bonds, notes and loans payable 2,837,681 1,609,616 4,447,297 225,933 Net pension liability 638,469 518,225 1,156,694 129,960 Net OPEB liability 734,668 733,124 1,467,792 135,402
Total non-current liabilities 2,911,174 4,257,206 5,541,683 12,710,063 491,295 TOTAL LIABILITIES 7,170,257 4,939,399 5,569,905 17,679,561 882,383
DEFERRED INFLOW OF RESOURCES
Pension plan 617,289 500,961 1,118,250 125,670
OPEB plan 148,060 148,372 296,432 27,346
Total deferred inflows of resources 649,021 765,661 153,016 1,414,682
NET POSITION
Net investment in capital assets 21,426,054 20,225,392 4,297,976 45,949,422 625,784 Restricted for:
Capacity expansion 6,284,390 463,199 6,747,589
Unrestricted 10,803,398 12,275,780 (4,981,282) 18,097,896 707,070 TOTAL NET POSITION (DEFICIT) 39,986,224 $ 31,491,989 $ (683,306) $ 70,794,907 1,332,854 $ 200,739
$ 70,995,646
The accompanying notes are an integral part of these financial statements.
TOTAL NET POSITION PER GOVERNMENT-WIDE FINANCIAL STATEMENTS The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the Business Activities of the Statement of Net Position.
Business Type ActivitiesEnterprise Funds
26 4063
CITY OF AMERICAN CANYON
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2022
Governmental
ActivitiesWater Wastewater
Recycled
Water Total
Internal
Service Funds
OPERATING REVENUES
Charges for services $ 4,824,937 8,412,016 $ 478,915 $ 13,715,868 $ 2,282,600 $ Other 82,867 334,281 417,148
TOTAL OPERATING REVENUES 8,746,297 4,907,804 478,915 14,133,016 2,282,600
OPERATING EXPENSES
Employee services 1,499,218 1,370,096 2,869,314 301,617 Maintenance and operations 5,653,756 1,863,895 50,238 7,567,889 1,419,907 Depreciation 1,282,037 1,561,144 222,773 3,065,954 264,842 TOTAL OPERATING EXPENSES 8,305,889 4,924,257 273,011 13,503,157 1,986,366 OPERATING INCOME (LOSS) 440,408 (16,453) 205,904 629,859 296,234
NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenue 56,053 (314,686) 4,101 (254,532) 2,340 Other revenue 84,281
Interest expense (66,544) (38,906) (21,246) (126,696) (5,608)
TOTAL NON-OPERATING
REVENUE (EXPENSES) (353,592) (10,491) (17,145) (381,228) 81,013
INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS 86,816 (26,944) 188,759 248,631 377,247
CONTRIBUTIONS AND TRANSFERS
Capital contributions 1,252,878 573,335 1,826,213
Transfers in 100,786 368 101,154
Transfers out (786,355) (1,540,596) (2,326,951)
CHANGE IN NET POSITION (200,902) (139,178) 189,127 (150,953) 377,247 Net position (deficit), beginning of year 31,631,167 40,187,126 (872,433) 70,945,860 955,607
TOTAL NET POSITION (DEFICIT),
END OF YEAR 39,986,224 $ 31,491,989 $ (683,306) $ 70,794,907 1,332,854 $ Change in net position (150,953)
113,228
$ (37,725)
The accompanying notes are an integral part of these financial statements.
CHANGE IN NET POSITION OF BUSINESS TYPE ACTIVITIES
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
Business Type Activities
Enterprise Funds
27 4064
Governmental
Activities
Water Wastewater
Recycled
Water Total
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 9,047,297 $ 5,106,147 $ 462,533 $ 14,615,977 $ Cash paid to suppliers (4,897,890) (1,595,236) (22,023) (6,515,149) (1,406,821) $ Cash paid to employees and related benefits (1,585,956) (1,694,675) (3,280,631) (208,765) Cash (paid) received from interfund services provided (60,098) (115,100) (175,198) 2,282,600 Other receipts 67,103
CASH PROVIDED BY OPERATING ACTIVITIES 2,503,353 1,701,136 440,510 4,644,999 734,117
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Amounts received (paid) to other funds 7,481,213 (1,157,314) 21,614 6,345,513
CASH (USED) PROVIDED BY NONCAPITAL AND
RELATED FINANCING ACTIVITIES 7,481,213 (1,157,314) 21,614 6,345,513 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital assets purchased (591,899) (788,035) (1,379,934) (75,855) Capital revenues received 1,252,878 573,335 1,826,213
Principal paid on long-term liabilities (70,382) (1,173,004) (1,243,386) (43,944) Proceeds from long-term liabilities (66,788) (66,788)
Interest paid on long-term liabilities (50,420) (84,744) (21,246) (156,410) (5,649)
CASH (USED) PROVIDED BY CAPITAL AND
RELATED FINANCING ACTIVITIES 473,389 (1,472,448) (21,246) (1,020,305) (125,448)
CASH FLOWS FROM INVESTING ACTIVITIES
Collection of interest and investment revenue (302,722) 47,321 3,248 (252,153) 1,113 CHANGE IN CASH AND CASH EQUIVALENTS 10,155,233 (881,305) 444,126 9,718,054 609,782 Cash and cash equivalents, beginning of year 9,078,216 9,478,514 105,384 18,662,114 630,269 CASH AND CASH EQUIVALENTS, END OF YEAR 19,633,747 $ 8,196,911 $ 549,510 $ 28,380,168 $ 1,240,051 $
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION:
Cash and investments 13,349,357 $ 7,733,712 $ 549,510 $ 21,632,579 $ 1,240,051 $ Restricted cash and investments 6,284,390 463,199 6,747,589 CASH AND CASH EQUIVALENTS 19,633,747 $ 8,196,911 $ 549,510 $ 28,380,168 $ 1,240,051 $
RECONCILIATION OF OPERATING INCOME (LOSS)
TO CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 440,408 $ (16,453) $ 205,904 $ 629,859 $ 296,234 $ Adjustments to reconcile operating income (loss)
to cash provided (used) by operating activities:
Depreciation and amortization 1,282,037 1,561,144 222,773 3,065,954 264,842 Changes in operating assets and liabilities:
Accounts receivable, net 301,000 198,343 (16,382) 482,961 (23,024) Prepaid expenses 41 (294) (7) (260) (28,983)
Accounts payable and accrued expenses 684,337 153,853 28,222 866,412 153,572 Deposits 11,390 11,390
Compensated absences (25,839) (29,403) (55,242) (2,270) Changes in pension and OPEB liabilities and related deferred outflows and inflows of resources:
Deferred outflows of resources - pension plan 40,113 16,696 56,809 (1,170) Net pension liability (721,020) (748,700) (1,469,720) (132,917) Deferred inflows of resources - pension plan 457,451 568,585 1,026,036 116,440 Deferred outflows of resources - OPEB plans (223,490) (204,030) (427,520) (41,795) Net OPEB liability 97,705 149,786 247,491 29,024
Deferred inflows of resources - OPEB plans 107,139 103,690 210,829 19,883 CASH PROVIDED BY OPERATING ACTIVITIES $ 1,701,136 2,503,353 $ 440,510 $ 4,644,999 $ 734,117 $
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
Change in capital asset purchases payable 153,608 $ 256,172 $ The accompanying notes are an integral part of these financial statements.
CITY OF AMERICAN CANYON
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Enterprise Funds
28 4065
Total
Custodial
Funds
ASSETS
Cash and investments $ 4,283,105
Restricted cash and investments 3,833,611
Taxes receivable 67,158
Interest receivable 8,417
TOTAL ASSETS 8,192,291
LIABILITIES
Accounts payable 68,487
Accrued interest payable 521,025
TOTAL LIABILITIES 589,512
NET POSITION
Restricted for individuals, organizations
and other governments 7,602,779
TOTAL NET POSITION $ 7,602,779
The accompanying notes are an integral part of these financial statements.
CITY OF AMERICAN CANYON
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
29 4066
Total
Custodial
Funds
ADDITIONS
Other taxes $ 261,205
Special assessments 2,262,128
Interest and investment earnings 15,032
TOTAL ADDITIONS 2,538,365
DEDUCTIONS
Maintenance and operations 330,410
Debt Service:
Principal 955,300
Interest and other charges 1,170,664
TOTAL DEDUCTIONS 2,456,374
NET INCREASE (DECREASE) IN
FIDUCIARY NET POSITION 81,991
Net position , beginning of year 7,520,788
NET POSITION, END OF YEAR $ 7,602,779
The accompanying notes are an integral part of these financial statements.
CITY OF AMERICAN CANYON
Statement of Changes in Fiduciary Net Position
Ficudiary Funds
June 30, 2022
30 4067
(This page intentionally left blank.)
4068
NOTES TO THE BASIC FINANCIAL STATEMENTS
4069
(This page intentionally left blank.)
4070
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
31 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of American Canyon (the City) was incorporated as a general law city in 1992. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, water, wastewater, culture-recreation, public improvements, planning and zoning, transit and general administration.
The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:
Reporting Entity
The financial statements of the City include the financial activities of the City and its component units.
The American Canyon Financing Authority and American Canyon Fire Protection District are legally separate entities for which the City is financially accountable and they are governed by the elected City Council. The Authority was formed to provide a method of financing public improvements, and the Fire District became part of the City when it was incorporated in 1992. The City has full accountability for the Authority’s fiscal affairs. Management of the City has operational responsibility for the Fire District. The financial activities of the Authority and the Fire District are blended with those of the City and are reported in the City’s governmental funds, and as capital assets and debt obligations of the City. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. Separate component unit financial reports are not prepared.
The City is a member of joint powers authorities (JPA) in which the City has only a residual equity interest in the related entity. The City is not liable for the liabilities of the entities if they dissolve under the related JPA agreement. However, Senate Bill 1912, effective January 1, 2019, requires members of a JPA that participates in a public retirement system to agree on the apportionment of the JPA’s retirement liability to the members of the JPA if the JPA dissolves or otherwise terminates its contract with the public retirement system. The City is a member of the following JPAs: Napa Valley Transportation Authority (transit services), Napa Valley Transportation and Planning Agency (transportation planning), North Bay Water Reuse Authority (water conservation and recycling) and Napa County Stormwater Management Program (pollution prevention program), Napa County Stormwater Management Program (stormwater management) and Cooperative Joint Powers Dispatching Services Agreement (fire dispatching). The City is also a member of the insurance JPA’s discussed in Note L. The financial statements of the JPAs are available on the websites of the related entities, if applicable.
Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
4071
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
32 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds.
Separate statements for each fund category—governmental and proprietary—are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of governmental and proprietary funds combined. The General Fund is always a major fund. The City may also report other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund – The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures.
Fire District Operations Special Revenue Fund – Accounts for revenues and the associated expenditures for fire services provided by the component unit fire protection district. The main sources of revenue are property taxes, assessments, and charges for services.
CDBG, CalHome and HOME Loan Development Special Revenue Fund – Accounts for housing rehabilitation made with Federal Community Development Grant monies. 4072
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
33 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) State and Federal Grants – City Special Revenue Fund – Accounts for grant funds received for improvements to various bus stop, curb ramps, bicycle path/trail from Chaucer Lane to existing trail, State Water Resources Control Board for recycled water projects, Urban Open Space and Recreation Program under the Safe Neighborhood Parks, Clean Water, Clean Air, Coastal Protection Bond Act of 2000.
City Capital Projects Fund – Accounts for major capital projects funded by various City sources. Major projects include Green Island Road Reconstruction/Widening and Devlin Road Extension Segment H.
Affordable Housing Capital Projects Fund – Accounts for fees collected from developers in lieu of providing affordable housing services.
The City reported all of its enterprise funds as major funds in the accompanying financial statements:
Water Enterprise Fund – Accounts for the operations of the City’s water treatment and distribution system.
Wastewater Enterprise Fund – Accounts for the operation of the City’s wastewater treatment plant and collection facilities.
Recycled Water Enterprise Fund – Accounts for the operation of the City’s recycled water collection and distribution system.
The City also reports the following fund types:
Internal Service Funds – Account for building maintenance, fleet, information technology and legal services provided to other departments or agencies of the City on a cost-reimbursement basis.
Fiduciary Funds – These funds are used to account for assets held by the City in a fiduciary capacity for special assessment districts. They consist entirely of Custodial Funds. The financial activities of these funds are excluded from the City-wide financial statements but are presented in separate Fiduciary Fund financial statements.
Basis of Accounting
The government-wide, proprietary and fiduciary fund statements are reported using the full accrual basis of accounting. The government-wide and proprietary fund statements use the economic resources measurement focus. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. The Fiduciary Fund statements are not reported using a measurement focus because only assets and liabilities are reported.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have 4073
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
34 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds.
Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual at both the City-wide and fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are not susceptible to accrual because they are not measurable until received in cash.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed.
Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of costreimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are exchange or exchange-like transactions between functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Property Tax Revenues
Napa County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.
Secured and unsecured property taxes are levied on January 1.
Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31.
The term "unsecured" refers to taxes on personal property other than real estate, land and buildings.
These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above. 4074
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
35 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Restricted Assets
Certain proceeds of long-term debt are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Restricted cash includes the “reserve” account used to report resources set aside to make up potential future deficiencies in the bond’s debt service.
Restricted cash also includes unspent proceeds of special assessment debt transferred to City capital projects funds. The restricted assets in the Proprietary Funds also includes amounts collected that are restricted for capacity expansion.
Assets Held for Resale
Assets held for resale are carried at the lower of cost or market, but not greater than the net realizable value. In the Fund Financial Statements, an amount equal to the carrying value of the asset is reported as nonspendable fund balance because such assets are not available to finance the City’s current operations.
Compensated Absences
Compensated absences are comprised of unpaid vacation and certain compensated time off, which are accrued as earned. A liability for compensated absences that are attributable to services already rendered and that are not contingent on a specific event that is outside the control of the government and its employees is accrued as employees earn the rights to the benefits. Compensated absences that relate to future services or that are contingent on a specific event that is outside the control of the government and its employees are accounted for in the period in which such services are rendered or such events take place. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The City’s liability for compensated absences is recorded in the governmental activities, Internal Service, Water and Wastewater Funds as appropriate and are generally liquidated by these funds. The governmental activities compensated absences liability is liquidated by the General Fund and Fire District Operations Fund. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund. The liability for compensated absences is determined annually.
Pension Plan
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to the pension plan, and pension expense, information about the fiduciary net position of the California Public Employee’s Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability is generally liquidated by the City’s General, Fire District Operations, Internal Service, Water and Wastewater Funds.
4075
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
36 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Other Postemployment Benefits (OPEB) Plans
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to the OPEB plans (Plans), and OPEB expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, the Plans recognize benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. The net OPEB liability is generally liquidated by the City’s General, Fire District Operations, Internal Service, Water and Wastewater Funds.
New Pronouncements
In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. This Statement addresses issues related to public-private and public-public partnership arrangements (PPPs). PPPs are arrangements in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. This statement requires that PPPs that meet the definition of a lease apply guidance in Statement No. 87, Leases, as amended, if existing assets of the transferor that are not required to be improved by the operator as part of the PPP arrangement are the only underlying PPP assets and the PPP does not meet the definition of a service concession arrangement. This Statement provides accounting and financial reporting requirements for all other PPPs: those that either (1) meet the definition of an SCA or (2) are not within the scope of Statement No. 87, as amended. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements that include an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. This Statement is effective for reporting periods beginning after June 15, 2022.
In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA). This Statement 1) defines the term SBITA; 2) establishes that a SBITA results in a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability; 3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs to a SBITA; and 4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITA are based on the standards established in Statement No. 87, Leases, as amended.
This statement is effective for fiscal years beginning after June 15, 2022.
In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. This Statement requires for the purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution plan, a defined contribution OPEB plan, or an other employee benefit plan (for example, certain Section 457 plans), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden 4076
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
37 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively. This Statement (1) requires that a Section 457 plan be classified as either a pension plan or an other employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities. The requirements other than paragraph 4 and 5 are effective for periods beginning after June 15, 2021.
In April 2022, the GASB issued Statement No. 99, Omnibus 2022. This Statement enhances comparability in accounting and financial reporting and consistency in authoritative literature, including the classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument; clarification of provisions of Statement 87, Leases, related to the determination of the lease term, classification of a lease as a shortterm lease, recognition and measurement of a lease liability and a lease asset and identification of lease incentives; clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement term, classification as short-term and recognition of a subscription liability; extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt; accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP); disclosures related to nonmonetary transactions; pledges of future revenues when resources are not received by the pledging government; clarification of provisions in Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments, related to the focus of the government-wide financial statements; terminology updates related to provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position; and terminology used in Statement No. 53 to refer to resource flows statements. The provisions of this Statement are effective immediately through periods beginning after June 15, 2023.
In June 2022, the GASB issued Statement No. 101, Compensated Absences. This statement requires that liabilities for compensated absences be recognized for leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or paid in cash or settled through noncash means and leave that has been used but not paid in cash or settled through noncash means. Leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in the liability for compensated absences. This Statement requires that a liability for certain types of compensated absences, including parental leave, military leave and jury duty leave, not be recognized until the leave commences. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. Governments are allowed to disclose the net change in the liability if identified as such in the footnotes to the financial statements. The provisions of this Statement are effective for years beginning after December 15, 2023.
The City is currently analyzing the impact of the required implementation of these new statements. 4077
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
38 NOTE B – BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all government funds except the State and Federal Grants – Fire Special Revenue Fund and the Engie Fire Debt Service Fund. All annual appropriations lapse at fiscal year-end.
The appropriated budget is prepared by fund, department, division, object and line item. The City’s department managers may make transfers of appropriations within a division. Transfers of appropriations between divisions require the approval of the City Manager. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations. The supplemental appropriations were immaterial.
The Fire Operations Special Revenue Fund, State and Federal Grants – City Special Revenue Fund, General Plan Update Special Revenue Fund, Traffic Impact Capital Projects Fund and Engie City Debt Service Fund had expenditures and transfers out in excess of the final appropriation for the fiscal year ended June 30, 2022 by $288,317, $106,973, $75,094, $234,038 and $64,597, respectively. The excess amounts were mainly due to minor unexpected costs or debt/projects approved by Council after the budget was adopted.
NOTE C – CASH AND INVESTMENTS
The City’s dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except cash and investments held by trustees so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.
Policies
The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.
Cash and investments 63,722,327 $
Restricted cash and investments 7,038,530
Total cash and investments of primary government 70,760,857 Cash and investments in Fiduciary Funds 4,283,105
Restricted cash and investments in Fiduciary Funds 3,833,611 Total cash and investments 78,877,573 $
4078
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
39 NOTE C – CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2022 consist of the following:
Cash on hand 2,400 $
Deposits with financial institutions 1,226,507
Investments:
Held by City 73,839,597
Held by fiscal agents 3,809,069
Total investments 77,648,666
Total cash and investments 78,877,573 $
Cash and investments are used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.
Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive.
Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment Per
Issuer
Local Agency Bonds 5 years A 30% 5%
U.S. Treasury Obligations 5 years None None None
State of California Obligations 5 years None None None
California Local Agency Obligations 5 years A 30% 5%
U.S. Agency Obligations 5 years None None 30%
Bankers' Acceptances 180 days A-1 40% 5%
Commercial Paper 270 days A-1/P-1/F-1 25% 10%CP/5%Port
Negotiable Certificate of Deposit 5 years A-1 30% 5%
Federally Insured Time Deposits 5 years None 20% (Collat) Max Insured Collateralized Time Deposits 5 years None 20% (Fed Ins) Per CA Law Certificate of Deposit Placement Service 5 years None 30% None Collateralized Bank Deposits 5 years None None None
Repurchase Agreements 1 year None None None
Medium-Term Notes 5 years A 30% 5%
Mutual Funds N/A AAA/Aaa 20% 10%
Money Market Funds N/A AAA/Aaa 20% 20%
ABS, Mortgage-Pass Through Securities 5 years AA 20% 5% Supranational Notes 5 years AA 30% 10%
County Pooled Investment Funds N/A None None None
Joint Powers Authority Pool N/A None None None
California Local Agency Investment Fund N/A None None None California Asset Management Program (CAMP) N/A None None None 4079
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
40 NOTE C – CASH AND INVESTMENTS (Continued)
Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements:
Maximum Minimum
Authorized Investment Type Maturity Credit Quality
Bankers' Acceptances 360 days A-1
U.S. Treasury Bills and Notes None N/A
State General Obligations None A
Municipal Obligations None Aaa/AAA
U.S. Government Agency Securities None AAA
U.S. Government Sponsored Securities None AAA
Federal Housing Administration Debentures None N/A
Medium Term Notes 5 year A
Commercial Paper 270 days A-1+
California Local Agency Investment Fund N/A N/A
Money Market Fund N/A AAm
Defeasance Securities N/A N/A
Pre-refunded Municipal Obligations None AAA
Investment Agreements N/A AA
Unsecured Certificates of Deposit 30 days A-1
CalTrust None N/A
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City generally manages its interest rate risk by investing in the Local Agency Investment Fund (LAIF), which provides the necessary cash flow and liquidity needed for operations, as well as purchasing a combination of shorter term and longer term investments so that a portion of the portfolio is maturing or coming close to maturing evenly over time.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
4080
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
41 NOTE C – CASH AND INVESTMENTS (Continued)
12 Months 13 to 36 36 to 60
Authorized Investment Type or less Months Months Total
California Local Agency Investment
Fund (LAIF) 51,007,686 $ 51,007,686 $
U.S. Treasury Notes 197,695 3,453,089 $ 3,713,049 $ 7,363,833 U.S. Government Agency Obligations 299,206 3,420,329 988,605 4,708,140 U.S. Corporate Obligations 410,141 3,415,353 2,090,812 5,916,306 Money Market Mutual Funds 4,108,623 4,108,623
Negotiable Certificates of Deposit 1,342,670 1,342,670
Asset-Backed Securities 996,962 1,302,863 2,299,825
Supranational Note 522,795 229,491 752,286
Collateralized Mortgage Obligations 149,297 149,297
Total invesments 57,366,021 11,957,825 8,324,820 77,648,666 Cash on hand 2,400 2,400
Cash in bank 1,226,507 1,226,507
Total cash and investments 58,594,928 $ 11,957,825 $ 8,324,820 $ 78,877,573 $ The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, United States Treasury Notes and Bills, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. The total fair value amount invested by all public agencies in LAIF is $231,867,874,452, which is managed by the State Treasurer. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by the State Statute. At June 30, 2022, these investments matured in an average of 311 days.
Credit Risk
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. The following are credit ratings issued by Moody’s and Standard and Poor’s as of June 30, 2022:
4081
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
42 NOTE C – CASH AND INVESTMENTS (Continued)
Aa2/AA A1/A+
Investment Type Aaa/AAA Aa1/AA+ Aa3/AA- P1 A2/A A3/A- Baa1/BBB+ Total U.S. Government Agencies 4,708,140 $ $ 4,708,140
U.S. Corporate Obligations 369,198 363,927 $ 1,075,117 $ 1,739,133 $ 2,304,483 $ 64,448 $ 5,916,306 Money Market Mutual Funds 4,108,623 $ 4,108,623
(U.S. Securities)
Negotiable Certificates of Deposit 1,342,670 1,342,670
Asset-Backed Securities 2,299,825 2,299,825
Supranational Note 752,286 752,286
Collateralized Mortage Obligations 149,297 149,297
Totals $ 5,077,338 7,310,031 $ 363,927 $ 2,417,787 $ 1,739,133 $ 2,304,483 $ 64,448 $ 19,277,147 Not rated:
LAIF 51,007,686
Exempt from credit rating disclosure:
U.S. Treasury Notes 7,363,833
Total investments $ 77,648,666
Concentration of Credit Risk
The investment policy of the City has no limitations on the amount that can be invested in any one issuer beyond what is stipulated by the California Government Code. Investments exceeding 5% of total investments are required to be disclosed under GASB Statement No. 40, which excludes U.S.
Treasury securities, mutual funds and external investment pools. At June 30, 2022 there were no investments exceeding 5% of total investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
At June 30, 2022, the City had $1,619,134 in deposits at banks above the federally insured limit, which are collateralized by securities pledged by the financial institution, but not in the name of the City.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to 4082
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
43 NOTE C – CASH AND INVESTMENTS (Continued)
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2022:
Total
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by fair value level:
U.S. Treasury Notes 7,363,833 $ 7,363,833 $
U.S. Government Agency
Obligations 4,708,140 4,708,140
U.S. Corporate Obligations 5,916,306 5,916,306
Asset-Backed Securities 2,299,825 2,299,825
Supranational Note 752,286 752,286
Collateralized Mortgage Obligations 149,297 149,297
Total investments by fair value level 21,189,687 - $ 21, $ - 189,687 $ Investments uncategorized:
LAIF 51,007,686
Negotiable Certificates of Deposit 1,342,670
Money Market Mutual Funds 4,108,623
Total investments 77,648,666 $
Fair Value Measurements Using
All securities classified in Level 2 are valued using pricing models that are based on market data, such as matrix or model pricing, which use standard inputs, which include benchmark yields, reported trades, broker/dealer quotes, issue spreads, two sided markets, benchmark securities, bids, offers and reference data including market research publications.
NOTE D – INTERFUND TRANSACTIONS
Interfund transactions between funds are reflected as loans, services provided, reimbursements or transfers. Loans are reported as receivables or payables as appropriate, and are subject to elimination upon consolidation. The City transfers resources among funds in the course of normal operations. Services provided, deemed to be at market or near market rates, such as vehicle maintenance, are accounted for as revenues and expenditures/ expenses. Transactions to reimburse a fund for expenditures/expenses initially made from it that are applicable to another fund are recorded as expenditures/expenses in the correct fund and as reductions of expenditures/ expenses in the original fund. All other interfund transactions are reported as transfers. 4083
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
44 NOTE D – INTERFUND TRANSACTIONS (Continued)
Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. Transfers between funds during the fiscal year ended June 30, 2022 were as follows:
Amount
Fund Making Transfer Fund Receiving Transfers Transferred General Fund Cabernet Village Lease Debt Service Fund 98,235 $ (C) Engie City Debt Service Fund 37,145 (A)
Major Governmental Funds:
State and Federal Grants-City Special Revenue City Capital Projects Fund 3,365,047 (B) Engie City Debt Service 153,435 (C)
City Capital Projects Fund 180,775 (B)
Major Enterprise Funds:
Water General Fund 823,608 (A)
City Capital Projects Fund 716,988 (B)
Wastewater General Fund 765,906 (A)
City Capital Projects Fund 20,449 (B)
Nonmajor Special Revenue Funds:
Storm Drainage General Fund 380,737 (D)
Measure T- Streets and Roads City Capital Projects Fund 29,721 (B) Gas Tax General Fund 300,000 (A)
City Capital Projects Fund 10,057 (B)
State Supplemental Law Enforcement General Fund 163,491 (A) Community Facilities District City Capital Projects Fund 370,257 (B) Nonmajor Capital Projects Funds:
Park Improvement City Capital Projects Fund 1,833 (B)
Traffic Impact City Capital Projects Fund 23,309 (B)
Zero Water Footprint Recycled Water Enterprise Fund 368 (A) Nonmajor Debt Service Funds:
Engie City Wastewater Enterprise Fund 64,597 (B)
Engie Fire Wastewater Enterprise Fund 36,189 (B)
$ 7,542,147
(A) Transfer resources to fund incurring (C) Transfer to fund debt service payments expenditures (D) Transfer to fund flood protection projects (B) Transfer to fund capital improvements
Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2022, the following funds have interfund balances.
4084
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
45 NOTE D – INTERFUND TRANSACTIONS (Continued)
Fund Making Loan Fund Receiving Loan Amount
General Fund
Major Governmental Funds:
State and Federal Grants - City Special Revenue 427,585 $ Major Enterprise Funds:
Water Fund 750,785
Wastewater 1,265,145
Internal Service Funds:
Legal Internal Service Fund 179,750
Nonmajor Special Revenue Funds:
Cannabis Fund 13,882
Community Facilities District 243,868
Fire District Operations Special Revenue
Nonmajor Debt Service Funds:
Engie Fire 19,076
Wastewater Enterprise
Major Enterprise Funds:
Water Fund 32,797
Fire District Operations Special Revenue 81,475
Engie City Debt Service
Major Enterprise Funds:
Wastewater 153,435
Total Due To/Due From Other Funds 3,167,798 $
Advances Between Funds
In December 2009, the Wastewater Enterprise Fund advanced the Water Enterprise Fund $4,907,024 for the Green Island Road Recycled Waterline project, Recycled Water Pump Station upgrade and other various construction projects. This loan accrued interest at 3% per year, but in 2021 the City Council approved Resolution 2021-269 that reduced the interest rate to the Local Agency Investment Fund interest rate retroactively to the State of California Local Agency Investment Fund. In 2021, this advance, along with the capital assets related to the recycled water projects, were transferred to the Recycled Water Fund. As of June 30, 2022, the Recycled Water Fund owed $5,541,683 including accrued interest on this advance, $129,402 to the Water Fund and $5,412,281 to the Wastewater Fund. The City intends to establish service charges in the Recycled Water Fund sufficient to repay the advance over the 15-year useful life of the capital assets. 4085
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
46 NOTE E – LOANS RECEIVABLE
At June 30, 2022, the City had the following loans receivable:
BEGIN Program $ 8,341,471
Satellite Affordable Housing Association 3,005,326
Mid-Peninsula Housing Coalition Loan 2,166,189
HOME Program 1,622,294
CDBG Housing Rehabilitation Program 469,051
CalHome Program 268,298
Employee Home Purchase Assistance 1,535
Other 51,477
15,925,641
Valuation allowance (8,248,746)
Loans, net $ 7,676,895
BEGIN Program
The City was awarded $1,080,000 ($30,000 each for 36 homes) from the State of California on August 17, 2005, plus an additional $6,038,900, from Mid-Peninsula Housing Coalition (MPHC), a non-profit organization, to grant loans to qualified low-income home buyers at Vineyard Place, a subdivision comprised of 45 single-family detached homes. Loan payments are deferred for the life of the loan, or until the homeowner sells the home, whichever occurs sooner. The loans will be forgiven, in stages, commencing in the 26th year of the loan, and totally forgiven after 30 years. As of June 30, 2022, residents owed the City $8,248,746 in loans offered by this program, which includes $2,756,046 of accrued interest.
Since these loans are secured by trust deeds which are subordinated to other debt on the associated projects or are only repayable from residual cash receipts on the projects, collectability of the outstanding balances may not be realized. As a result, the entire outstanding balances of the forgivable loans have been offset by a valuation allowance and is not reported on the balance sheet.
The BEGIN Fund also includes loans of $92,725, including accrued interest, which are not required to be forgiven. However, if the amount of net sale proceeds is less than the amount due under the loan, the City may forgive the loan to the extent that the amount due under the loan exceeds the net sale proceeds.
Satellite Affordable Housing Association Loan
The City made two separate loans to Satellite Affordable Housing Association (SAHA) totaling $2,730,000 for the development of 70 affordable housing units:
Acquisition and Development: The City loaned $1,050,000 for the acquisition and $750,000 for other development costs. The loan carries a 3% interest rate over a 57-year term. As part of the agreement, the City will receive a residual share of the cash flow from the project.
Construction: The City loaned $930,000 for the construction of the units. The loan is interest free over a 57-year term.
4086
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
47 NOTE E – LOANS RECEIVABLE (Continued)
As of June 30, 2022, the loan balance was $3,005,326.
Mid-Peninsula Housing Coalition Loan
The City loaned the Mid-Peninsula Housing Coalition (MPHC) $2,265,000 interest free for the construction of the Vineyard Crossing Apartments. As part of the agreement, the City will receive a residual share of the cash flow from the project. As of June 30, 2022, the loan balance was $2,166,189.
HOME Program
The City provides loans to qualified first time buyers through the federally funded HOME Program.
Under this program, principal and interest payments are deferred until the loan is refinanced or title to the property changes. These loans carry a 1% interest rate with a maturity of 30 years. As of June 30, 2022, residents owed the City $1,622,294 in loans offered by this program, including accrued interest.
CDBG Housing Rehabilitation Program
The City administers a Housing Rehabilitation Loan Program using the Housing and Community Development Act funds. Under this program, residents with incomes below a certain level are eligible to receive low interest loans, secured by deeds of trust, for construction work on their homes.
Federal grants are used to fund these loans. Upon approval of loans, the City disburses the funds, and arranges for and collects repayments. These loans generally have interest rates of 3%, although some are zero-interest-rate loans, and are generally due upon transfer of the home or refinancing. As of June 30, 2022, residents owed the City $469,051 in loans offered by this program, including accrued interest.
CalHome Program
The City operates the CalHome Program to assist with the down payment or rehabilitation of manufactured homes. No interest accrues on the loans and principal payments are deferred until maturity. As of June 30, 2022, residents owed the City $268,298 in loans offered by this program.
Employee Home Purchase Assistance
The City provided home down payment assistance to its employees until through the year ended June 30, 2009 when the program was terminated. At June 30, 2022, there was one loan outstanding to an employee. To qualify for the program, employees were required to be full-time and purchase a home within the City limits. The maximum loan amount was 10% of the purchase price, or $50,000, whichever was less. Interest on the loans was determined using the current Local Agency Investment Fund rate. The maximum loan term was 20 years. As of June 30, 2022, the remaining employee owed the City $1,535 under this program.
4087
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
48 NOTE F – CAPITAL ASSETS
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated acquisition value on the date contributed, which is the price that would be paid to acquire an asset with equivalent service potential in an orderly market transaction at the acquisition date. The City defines capital assets as equipment, vehicles, furniture and fixtures with an initial individual cost of more than $5,000 ($50,000 for infrastructure type assets) and an estimated useful life in excess of one year (30-75 years for infrastructure assets) with the exception of Federally funded acquisitions, which are $5,000 or more. Land is capitalized at an initial individual cost of more than $150,000. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. Major outlays for capital assets and improvements are capitalized as projects are constructed. The City has assigned the useful lives listed below to capital assets:
Buildings and Improvements 20-30 years
Public Domain Infrastructure 50-75 years
System Infrastructure-Utility 60 years
Vehicles and Equipment 2-15 years
The cost of assets sold or retired and the related amounts of accumulated depreciation are eliminated from the statement of net position in the year of sale or retirement, and the resulting gain or loss is recognized in operations.
4088
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
49 NOTE F – CAPITAL ASSETS (Continued)
Capital Asset Additions and Retirements
Capital assets at June 30 consisted of the following:
Balance
July 01, 2021 Balance at
(as Restated) Additions Retirements Transfers June 30, 2022 Governmental Activities
Capital assets, not being depreciated:
Land 10,162,813 $ 10,162,813 $
Street right of ways 165,187,812 165,187,812
Construction in progress 7,903,704 4,841,577 $ 12,745,281 Total capital assets,
not being depreciated 183,254,329 4,841,577 188,095,906 Capital assets, being depreciated:
Buildings and improvements 51,201,341 51,201,341
Machinery and equipment 8,536,587 193,079 (107,200) $ 8,622,466 Infrastructure - streets and
storm drains 92,289,491 92,289,491
Leased equipment 244,687 244,687
Total capital assets,
being depreciated 152,272,106 193,079 (107,200) 152,357,985 Less accumulated depreciation for:
Buildings and improvements (22,615,244) (1,744,249) 49,744 $ (24,309,749) Machinery and equipment (5,862,164) (525,871) 107,200 (6,280,835) Infrastructure - streets and
storm drains (32,564,964) (2,040,470) (49,744) (34,655,178) Leased equipment (42,951) (42,951)
Total accumulated depreciation (61,042,372) (4,353,541) 107,200 (65,288,713) Capital assets being
depreciated, net 91,229,734 (4,160,462) 87,069,272
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 681,115 274,484,063 $ - $ - $ 275,165,178 $ The leased assets above consist of six vehicles that were recorded in a restatement as of July 1, 2021 to implement GASB Statement No. 87, Leases, as described in Note G. Capital outlay expenditures in governmental funds does not agree to additions above due to additions in the Fleet Enterprise Fund being included in the rollforward above that are not reported in governmental funds. 4089
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
50 NOTE F – CAPITAL ASSETS (Continued)
Balance at Balance at
June 30, 2021 Additions Retirements Transfers June 30, 2022 Business-Type Activities
Capital assets, not being depreciated:
Land and improvements 2,208,769 $ 2,208,769 $
Construction in progress 7,584,571 1,307,638 $ 8,892,209 Total capital assets,
not being depreciated 9,793,340 1,307,638 11, 100,978
Capital assets, being depreciated:
Buildings and improvements 7,879,811 7, 879,811
Water treatment and distribution 40,319,403 40,319,403
Equipment 3,220,805 72,296 3, 293,101
Wastewater treatment and
collection 35,061,638 35,061,638
Recycled Water Treatment
and Distribution 5,871,108 5, 871,108
Total capital assets,
being depreciated 92,352,765 72,296 92, 425,061
Less accumulated depreciation for:
Buildings and improvements (4,758,447) (230,522) (4, 988,969) Water treatment and distribution (1,245,691) (21,256,657) (22,502,348) Equipment (2,174,783) (322,547) (2, 497,330)
Wastewater treatment and
collection (18,386,545) (1,071,864) (19,458,409)
Recycled Water Treatment
and Distribution (2,059, (195,330) 298) (2, 254,628)
Total accumulated depreciation (48,635,730) (3,065,954) (51, 701,684) Capital assets being
depreciated, net 43,717,035 (2,993,658) 40, 723,377
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ (1,686,020) 53,510,375 $ - $ - $ 51, $ 824,355 Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets.
The amounts allocated to each function or programs are as follows:
Depreciation
Governmental Activities:
Public safety 342,033 $
Public works 3,514,201
Storm drain 497,307
Total Governmental Activities 4,353,541 $
4090
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
51 NOTE F – CAPITAL ASSETS (Continued)
Business-type Activities:
Water 1,282,037 $
Wastewater 1,561,144
Recycled Water 222,773
Total Business-type Activities 3,065,954 $
Project Commitments
At June 30, 2022, the City had outstanding commitments with contractors for the following projects:
Remaining
Project Commitment
Transportation projects 2,234,414 $
Parks projects 417,713
Community development projects 365,167
Wastewater projects 96,550
Planning projects 4,940
$ 3,118,784
4091
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
52 NOTE G – LONG-TERM LIABILITIES
The City generally incurs long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. Activity in the City’s long-term liabilities was as follows for the year ending June 30, 2022:
Balance
Original July 01, 2021 Balance Current
Amount (as Restated) Additions Retirements June 30, 2022 Portion Governmental Activities
2020 City Hall Site Agreement
2.6%, due 05/01/34 4,569,064 $ 4,569,064 $ 4,569,064 $
Bank of America
Financed Purchase ENGIE
1.79%, due 06/01/36 5,209,209 845,181 (43, $ 802,001 180) 41,371 $ Municipal Asset Management, Inc.
Financed Purchase - 2.96%
due 06/17/24 314,188 (33, 102,742 69,026 716) 34,674
Enterprise Lease Liability 244,687 (10, 244,687 228) 42,878 234,459 Total amortized debt 5,761,674 (87, 5, 124) 118,923 674,550 Cost reimbursement payable 1,226,688 1,226,688 (1, 226,688) Total direct borrowings and direct placements 6,988,362 (1, 5,674,550 313,812) 118,923 Compensated absences 782,949 $ (724,607) 689,991 748,333 664,470 Claims and judgments 1,636,881 (318,092) 815,192 2, 2,133,981 133,981 Net pension liability 14,175,773 (6,252,672) 7,923,101
Other postemployment benefits 5,914,813 ( 5, 115,269) 799,544 Total Governmental
Long-Term Liabilities 29,498,778 1,505,183 (8,724,452) 22,279,509 2,917,374 $ Less: Amount due within one year (2,322,475) (2,917,374) Total Governmental Long-Term
Liabilities, Net 27,176,303 $ 1,505,183 $ (8,724,452) $ 19,362,135 $ The Municipal Asset Management, Inc. lease and Enterprise Lease Liability are reported in the Fleet Internal Service Fund, so no principal payment expense is reported in governmental funds for payments on the leases.
4092
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
53 NOTE G – LONG-TERM LIABILITIES (Continued)
Balance
Original July 01, 2021 Balance Current
Amount (as Restated) Additions Retirements June 30, 2022 Portion Business-type Activities
State of California Davis-Grunsky Loan
2.5%, due 12/31/27 2,050,000 $ 502,788 $ (70,382) $ 432,406 $ 72,142 $ State Water Resources Control Board,
State Revolving Fund Loan
2.7%, due 07/15/22 10,859,470 1,425,762 (703,385) 722,377 722,377 Bank of America
Financed Purchase ENGIE
1.79%, due 06/01/36 5,209,209 4,460,412 (227,876) 4,232,536 218,337 Municipal Finance - Inc.
Financed Purchase - 3.55%
due 07/06/22 2,004,200 308,531 (308,531)
Total direct borrowings and direct placements 6,697,493 (1,310,174) 5,387,319 1,012,856 Add: Unamortized interest on
Davis-Grunsky Loan 84,348 (11,514) 72,834
Compensated absences 284,933 183,697 $ (238,939) 229,691 133,094 Net pension liability 2,626,414 (1,469,720) 1,156,694
Other postemployment benefits 1,220,301 247,491 1,467,792 Total Business-type
Long-Term Liabilities 10,913,489 431,188 (3,030,347) 8,314,330 1,145,950 $ Less: Amount due within one year (1,233,603) (1,145,950) Total Business-type
Activity Liabilities 9,679,886 $ 431,188 $ (3,030,347) $ 7,168,380 $ All agreements below represent direct borrowings.
2020 City Hall Site Agreement
In October 2020, the Financing Authority entered into an agreement in the amount of $4,569,064 in order to terminate the 2007 Lease Financing and restructure the payments on the agreement to purchase the site and construct the City Hall. The terms of the agreement require semi-annual principal payments of $185,202 to $231,828 commencing on November 1, 2023, and semi-annual interest payments of $2,492 to $53,756 commencing on May 1, 2021, through May 1, 2034, which includes interest at 2.6%. In the event of default, the lender has the ability to direct and control remedies under the agreement, which includes termination of the agreement and re-lease of the property.
ENGIE Financed Purchase Agreement
In May 2020, the City entered into a purchase arrangement with a bank in the amount of $5,209,209 for equipment upgrades, replacements and installation to provide energy savings for the City. Debt service will be funded from the revenue of the General Fund, Fire District Fund, Water Fund, and Wastewater Fund. $15,354 of accrued interest was added to the principal balance by the lender after issuance during 2021. The contracts were split between governmental activities and business-type activities based on the proportion of future contract obligations. The contract rate is 1.79%.
Monthly principal and interest payments ranging from $28,975 to $41,144 are due on the first of each month from July 1, 2021 to June 1, 2036. In the event of default, the agreement may be terminated and the equipment may be repossessed and 1% will be added to the interest rate. 4093
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
54 NOTE G – LONG-TERM LIABILITIES (Continued)
Financed Purchase Agreement – Municipal Asset Management, Inc. Vac Con Truck In July 2014, the City entered into a purchase arrangement for $314,188 to purchase sewer and storm drain equipment. The terms of the agreement require annual payments of $36,757 through June 17, 2024, which includes interest at 2.96%. In the event of default, the agreement may be terminated, and the equipment may be repossessed. Also, a late charge of 1% per month will be assessed.
Enterprise Lease Liability
During the year ended June 30, 2022, the City implemented GASB Statement No. 87, Leases, retroactivity to July 1, 2021. This Statement requires recognition of lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.
On August 26, 2021, the City entered into a master lease agreement with Enterprise Fleet Management to lease vehicles for the City. The City leases six vehicles under the agreement with payments of $57,934 per year starting in 2023 and final payments of $45,523 in 2027 through June 22, 2027. The District recorded lease assets and a lease liability for the present value of the lease payments over the lease terms.
For purposes of discounting future lease payments, the District used a discount rate of 6.85% charged by the lessor. The lease assets are being amortized over 5.0 years, which is the remaining term of the current leases. The lease assets and liability were recorded in a restatement as of July 1, 2021 of $244,687. As of June 30, 2022, the cost and accumulated amortization of the leased vehicles were $244,687 and $49,581, respectively. The agreement contains a default interest rate of the lesser of 18% or the highest rate permitted by law.
Cost Reimbursement Payable
The City entered into a cost sharing agreement with a property owner for the construction of a traffic light and improvements at an intersection. The property owner constructed the streetlight at a cost of $1,617,255 and the City has agreed to reimburse the property owner for 75.85% of the cost, or $1,226,688. The City repaid the payable, along with $845,743 of interest, during 2022.
State of California Davis – Grunsky Loan
The City obtained a loan in an original amount of $2,050,000 from the State of California Department of Water Resources under the Davis-Grunsky Act for the purpose of financing water system improvements.
Interest payments are due each July 1 and January 1 with the final payment due December 31, 2027, ranging from $659 to $5,450. Principal payments are due each January 1 with a final payment due December 31, 2027, ranging from $53,204 to $79,631. The loan bears interest at 2.5% and the loan is secured by a pledge to levy taxes or assessments in amounts sufficient to pay debt service. The City makes repayments from its water enterprise fund from available resources. In the event of default, the State may take action in a court to enforce the levy and collection of taxes or assessments to pay amounts due under the agreement and may charge a default interest rate of 0.209% per month after the scheduled payment is more than 30 days past due.
State of California Revolving Fund Loan
The City obtained a $10,859,470 loan from the State of California Department of Water Resources under the State Revolving Loan Program for the purpose of obtaining financing to construct the City’s wastewater treatment plant. The loan bears interest at 2.7% and is secured by a pledge of the City to maintain dedicated sources of revenue sufficient in amounts to provide for repayment of the loan. 4094
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
55 NOTE G – LONG-TERM LIABILITIES (Continued)
Principal and interest on the loan is payable in annual installments of $741,881 due each July 15 through 2022. In the event of default, the State may take action in a court to enforce the levy and collection of taxes or assessments to pay amounts due under the agreement.
Financed Purchase – Municipal Finance, Inc.- Wastewater Membranes In July 2015, the City entered into a lease purchase agreement for $2,004,200 for the acquisition and installation of equipment at a wastewater plant. The terms of the lease require annual principal payments of $157,222 through July 6, 2022, which includes interest at 3.55%. In the event of default, all unpaid principal and interest may be declared immediately due and payable. The default interest rate is 8%.
Debt Service Requirements
Future annual debt service requirements for long-term liabilities at June 30, 2022 were as follows:
Year Ending
June 30: Principal Interest Principal Interest Principal Interest 2023 76,045 $ 114,335 $ 42,878 $ 15,056 $ 118,923 $ 129,391 $ 2024 451,146 110,553 45,909 12,024 497,055 122,577
2025 428,017 100,626 49,155 8,779 477,172 109,405
2026 437,183 91,543 52,629 5,304 489,812 96,847
2027 450,549 82,233 43,888 1,635 494,437 83,868
2028-2032 2,399,412 263,942 2,399,412 263,942
2033-2037 1,197,739 35,474 1,197,739 35,474
Totals 5,440,091 $ 798,706 $ 234,459 $ 42,798 $ 5,674,550 $ 841,504 $ Total
Governmental Activities
Loans Leases
Year Ending
June 30: Principal Interest
2023 1,012,856 $ 104,291 $
2024 308,252 78,945
2025 326,856 72,765
2026 333,726 66,335
2027 361,867 59,596
2028-2032 1,539,063 205,085
2033-2037 1,504,699 57,081
$ 644,098 5,387,319 $
Business-type Activities
The Water and Wastewater Funds have pledged a portion of their net revenue to repay $2,050,000 for the State of California Davis-Grunsky loan and $10,859,470 for the State of California Revolving Fund loan to finance certain capital improvements. Total principal and interest remaining on the Water Fund loan through 2028 is $469,294 and total principal and interest remaining on the Wastewater Fund loan through 2023 is $741,881. For fiscal year 2022, the principal and interest paid by the Water and Wastewater funds for these loans was $82,079 and $741,881, respectively. The Water Fund and the Wastewater Funds had net revenues of $2,660,637 and $2,174,079, respectively, in fiscal year 2022. 4095
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
56 NOTE G – LONG-TERM LIABILITIES (Continued)
Arbitrage
Under U.S. Treasury Department regulations, all governmental tax-exempt debt issued after August 31, 1986 is subject to arbitrage rebate requirements, which stipulate, in general, that the earnings from the investment of tax-exempt bond proceeds, which exceed related interest expenditures on the bonds, must be remitted to the Federal government on every fifth anniversary of each bond issuance. The City has evaluated its bond issuance and no arbitrage liability was recognized as of June 30, 2022.
Special Assessment Debt Without City Commitment
At June 30, 2022, the outstanding principal amount of bonded debt issued by special assessment districts in the City was as follows:
LaVigne AD 2013 Reassessment Revenue Refunding Loan 3, $ 618,900 American Canyon Road East AD Refunding Revenue Bonds, Series 2015 9,955,000 Community Facilities District No. 2018-1 (Green Island Road Project) Special Tax Revenue Bonds, Series 2020 5,085,000
The City has no legal or moral responsibility with respect to the payment of this debt and has therefore not recorded it as a liability. The City is responsible, as the Districts’ agent, for the Districts’ cash receipts, disbursements and balances, which are reported as Custodial Fund transactions in the financial statements.
NOTE H – NET POSITION AND FUND BALANCES
Net Position: Net position is the excess of the City’s assets and deferred outflows of resources over its liabilities and deferred inflows of resources. Net Position is segregated into the following categories at the government-wide and proprietary fund level:
Net investment in capital assets: This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balance of debt that is attributable to the acquisition, construction or improvement of these assets reduces this category.
Restricted net position: This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted net position: This category represents the net position of the City, which are not restricted or invested in capital assets net of related debt for any project or other purpose.
Fund Balance: Governmental fund balances represent the net current assets of each fund. Net current assets consists of a fund’s assets and deferred outflows of resources over liabilities and deferred inflows of resources.
4096
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
57 NOTE H – NET POSITION AND FUND BALANCES (CONTINUED)
The City’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, committed, assigned, and unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable fund balances are not expected to be converted to cash within the next operating cycle and are typically comprised of long-term receivables, land held for resale, deposits with others, prepaid items and advances to other funds.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council consisting of an ordinance or resolution, which the City considers equally binding. The City Council has authority to establish, modify, or rescind a fund balance commitment through another ordinance or resolution.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or management and may be changed at the discretion of the City Council or management.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted or unrestricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.
The Fire District Board has established a contingency reserve which may only be used in the event the City experiences a 10% reduction in the operations fund property tax revenue or in the event of a declared emergency as defined by Health and Safety Code §13901. The reserve may also only be used according to a resolution of the governing body.
The City Council has established a General Fund contingency reserve which can only be used in the event the City experiences a 10% reduction in discretionary General Fund revenue compared to the prior fiscal year or in the event of a declared emergency as defined by Municipal Code 2.48.020.
The City’s Capital Projects Reserve will be increased by a minimum of $100,000 per year until it reaches $2 million, and thereafter it will be increased by 3% or the annual CPI, whichever is greater.
The Economic Development Reserve was established at $1,000,000 and is to be used to further the City’s adopted Economic Development program.
4097
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
58 NOTE H – NET POSITION AND FUND BALANCES (CONTINUED)
Fund balances of governmental funds were categorized as follows as of June 30, 2022:
State and
Fire District CDBG, CalHome Federal Affordable
Operations and HOME Loan Grants - City City Housing Nonmajor Total Special Development Special Capital Capital Governmental Governmental General Revenue Special Revenue Revenue Projects Projects Funds Funds Fund Balances
Nonspendable:
Property held for resale 417,503 $ $ 417,503
Prepaid expenditures
and deposits 24,911 24,911
Total Nonspendable 442,414 442,414
Restricted:
Public safety
Fire District capital
acquisition $ 992,569 992,569
Vehicle enforcement 149,694 149,694
Other 227,857 $ 238,398 10,541
Public works
Capital projects $ 5,814,461 101,848 5,916,309
Non-capital projects 5,846,993 5,846,993
Landscaping and lighting
districts 2,944,460 2,944,460
Storm drain projects 6,579,027 6,579,027
Community development,
planning and building 614,026 40,891 $ 242,589 $ 73,273 970,779 Parks
La Vigne Open Space 175,025 175,025
Newell Park Open Space 244,400 244,400
Other 1,681,806 1,681,806
Other activities 97,558 250,993 153,435
Total Restricted 861,278 227,857 40,891 101,848 242,589 24,515,990 25,990,453 Committed:
Contingency 5,000,440 1,267,279 6,267,719
Capital projects 2,000,000 2,000,000
Total Committed 7,000,440 1,267,279 8,267,719
Assigned:
Economic development 1,000,000 1,000,000
General plan update 103,074 103,074
Fire operations 4,135,660 4,135,660
Total Assigned 1,000,000 4,135,660 103,074 5,238,734
Unassigned: 3,282,423 (661,487) $ (283,359) 2,337,577
Total Fund Balance 12,586,555 $ 5,630,796 $ 40,891 $ (661,487) $ 101,848 $ 242,589 $ 24,335,705 $ 42,276,897 $ Net Position and Fund Equity Deficits
The State and Federal Grants – City Special Revenue Fund, Recycled Water Enterprise Fund, Cannabis Special Revenue Fund, Community Facility District Special Revenue Fund, Engie Fire Debt Service Fund and Legal Internal Service Fund had deficit fund balances or net position of $661,487, $683,306, $13,882, $248,667 $20,810 and $201,217, respectively, at June 30, 2022. The deficit in the State and Federal Grants – City Special Revenue Fund was due to unavailable revenue that will be recognized in the subsequent year. The remaining deficits are expected to be covered by future grants, fees or charges for services in these funds. 4098
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
59 NOTE I – DEFERRED COMPENSATION PLANS
The City offers three deferred compensation plans under IRC Section 457: The ICMA Retirement Corporation Internal Revenue Code (IRC) Section 457 Deferred Compensation Plan (the ICMA Plan), the VALIC IRC Section 457 Deferred Compensation Plan (the VALIC Plan), and the Public Agency Retirement System Section 457 FICA Alternative Retirement Plan (FICA ARP). Benefit terms for the deferred compensation plans are established by and may be amended by the City Council subject to provisions of employment agreements. The ICMA Plan is a voluntary plan available to all City employees with the exception to members of Fire Fighters Local 1186. The VALIC Plan is available to all City employees with the exception of unrepresented part-time, temporary and seasonal employees. The FICA ARP Plan is available to unrepresented part-time, temporary and seasonal employees not eligible for other retirement plans. Employee contributions to the ICMA Plan are voluntary and the City makes no contributions. Employer and employee contributions to the VALIC Plan are discretionary. The City contributes 3.3% of employees’ pay to the FICA ARP and employees contribute a minimum of 4.2% of their compensation up to the IRC limits. Employees are fully vested in their contributions immediately after the contributions are made. For the year ended June 30, 2022, the City made contributions of $296,626 and employees made contributions of $21,705 to the deferred compensation plans.
NOTE J – PENSION PLANS
DEFINED BENEFIT PLAN
Plan Description: All qualified permanent and probationary employees are eligible to participate in the City’s cost-sharing multiple-employer defined benefit pension plan (the Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous risk pool and a safety risk pool and the following rate plans:
City Miscellaneous Plan
City PEPRA Miscellaneous Plan
Fire Protection Miscellaneous Plan
Safety Fire First Tier Plan
Safety Fire Second Tier Plan
Safety Fire PEPRA Plan (effective beginning fiscal year 2017) Although one pension plan exists, CalPERS provides the information separately for the Miscellaneous and Safety Risk Pools and the information is presented separately where available. Benefit provisions under the Plan is established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.
Benefits Provided: CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (52 for PEPRA Miscellaneous Risk Pool) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the 1959 Survivor Benefit level 4, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
4099
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
60 NOTE J – PENSION PLANS (Continued)
The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:
City
City PEPRA Fire Protection
Miscellaneous Miscellaneous Miscellaneous
Prior to On or after Prior to
January 1, 2013 January 1, 2013 January 1, 2013
Benefit formula (at full retirement) 2.0% @ 55 2.0% @ 62 3.0% @ 60 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 52 - 67 50 - 60
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.0% to 2.5% 2.00% to 3.00% Required employee contribution rates 7.00% 7.25% 6.75%
Required employer contribution rates 11.600% 7.730% 7.470% Safety Fire Safety Fire Safety Fire
First Tier Second Tier PEPRA
January 1, 1965 to On or after On or after
May 5, 2010 May 5, 2010 January 1, 2013
Benefit formula (at full retirement) 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50-57
Monthly benefits, as a % of eligible compensation 3.00% 2.40% to 3.00% 2.0% to 2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.710% 21.790% 13.130% Beginning June 29, 2019, the City and its General and Mid-Management bargaining units agreed the employees would reimburse 3.399% of the employer contribution and would equally share in any excess employer contributions exceeding 16% up to a limit of 5% of additional employee contribution. The employee reimbursement percentage was amended to 4.855% and 5% of the employer contribution on June 27, 2020 and October 5, 2021, respectively.
All rate plans except the PEPRA rate plans are closed to new members that are not already CalPERS participants.
Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the rate plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 4100
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
61 NOTE J – PENSION PLANS (Continued)
For the year ended June 30, 2022, the contributions paid to Plan were as follows:
City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool Total
Contributions - employer 1,245,432 $ 988,461 $ 18,869 $ 2,252,762 $ Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources: As of June 30, 2022, the City reported a net pension liability for its proportionate shares of the Plan as follows:
Proportionate
Share of Net
Pension
Liability/Asset
City Miscellaneous Risk Pool 4,048,631 $
Fire Safety Risk Pool 4,987,426
Fire Miscellaneous Risk Pool 43,738
Total Net Pension Liability 9, $ 079,795
The City’s net pension liability of each risk pool is measured as the proportionate share of the net pension liability. The net pension liability of each of the risk pools is measured as of June 30, 2021, and the total pension liability for each risk pool used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures.
The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each risk pool as of June 30, 2022 and 2021 were as follows:
City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool
Proportion - June 30, 2021 0.20221% 0.12336% 0.00178%
Proportion - June 30, 2022 0.21322% 0.14211% 0.00230%
Change - increase (decrease) -0.01101% -0.01875% -0.00052% For the year ended June 30, 2022, the City recognized pension expense (benefit) of $423,217, $882,817, $(18,559) and $1,287,475 for the City Miscellaneous Risk Pool, Fire Safety Risk Pool, Fire Miscellaneous Risk Pool and in total for the Plan, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources:
4101
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
62 NOTE J – PENSION PLANS (Continued)
Deferred Outflows Deferred Inflows
City Miscellaneous Risk Pool of Resources of Resources
Pension contributions subsequent to measurement date 1,245,432 $ Differences between actual and expected experience 454,011 Change in employer's proportion 274,506 (380, $ 293)
Net differences between projected and actual earnings
on plan investments (3,534,245)
Total 1,973,949 $ (3,914, $ 538)
Fire Safety Risk Pool
Pension contributions subsequent to measurement date 988,461 $ Differences between actual and expected experience 852,097 Change in employer's proportion 95,960 (376, $ 262)
Net differences between projected and actual earnings
on plan investments (2,968,477)
Total 1,936,518 $ (3,344, $ 739)
Fire Miscellaneous Risk Pool
Pension contributions subsequent to measurement date 18,869 $ Differences between actual and expected experience 4,905 Change in employer's proportion 34,623 (28, 188)
Net differences between projected and actual earnings
on plan investments (38,181) $
Total 58,397 $ (66, $ 369)
Total for Plan 3,968,864 $ (7,325, $ 646)
The amounts above reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other deferred amounts related to the net differences between the projected and actual earnings on plan investments and all remaining amounts will be recognized as pension expense over 5 years and the average service lives of employees, respectively, as follows:
City Fire Fire
Year Ended Miscellaneous Safety Miscellaneous
June 30 Risk Pool Risk Pool Risk Pool Total
2023 (685,187) $ (403,142) $ (3,600) $ (1,091,929) $
2024 (734,045) (509,886) (5,146) (1,249,077)
2025 (809,254) (666,772) (7,544) (1,483,570)
2026 (957,535) (816,882) (10,551) (1,784,968)
$ (2,396,682) (3,186,021) $ (26,841) $ (5,609,544) $
4102
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
63 NOTE J – PENSION PLANS (Continued)
Actuarial Assumptions: The total pension liabilities in the actuarial valuations for each risk pool were determined using the following actuarial assumptions:
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method Entry-Age Normal Cost Method
Amortization method Level pecent of payroll
Asset valuation method Market value
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.50%
Payroll growth 2.75%
Projected salary increase 0.4% - 8.5% Miscellaneous and 0.97% to 17.0% Safety (1) Investment rate of return 7.15% (2)
Mortality Derived using CalPERS membership data for all funds (1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of Scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. All other actuarial assumptions used in the valuations were based on the results of an actuarial experience study for the period 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be found on CalPERS’ website under Forms and Publications.
Discount Rate: The discount rate used in the accounting valuations to measure the total pension liability was 7.15% for each risk pool. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of
7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated 4103
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
64 NOTE J – PENSION PLANS (Continued)
above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class for the Plan. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10(a) Years 11+(b)
Public equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation assets 0.0% 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City’s proportionate share of the net pension liability for each risk pool, calculated using the discount rate for each risk pool, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:
City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool Total
1% decrease 6.15% 6.15% 6.15% 6.15%
Net pension liability 9,400,652 $ 9,045,139 $ 44,265 $ 18, $ 490,056 Current discount rate 7.15% 7.15% 7.15% 7.15%
Net pension liability 4,048,631 $ 4,987,426 $ 43,738 $ 9, $ 079,795 1% increase 8.15% 8.15% 8.15% 8.15%
Net pension liability (375,805) $ 1,654,516 $ 43,302 $ 1, $ 322,013 Fiduciary Net Position: Detailed information about each Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Payable to the Plan: At June 30, 2022, the City had no contributions payable to the City Miscellaneous and Fire Safety Risk Pools.
DEFINED CONTRIBUTION PLAN
The City offers the City of American Canyon Internal Revenue Code (IRC) Section 401a Government Money Purchase Plan (401a Plan), a single-employer defined contribution retirement plan, to at-will 4104
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
65 NOTE J – PENSION PLANS (Continued)
management, mid-management and confidential employee unit members exempt from the Fair Labor Standards Act that are over 18 years of age. Benefit terms for the 401a Plan are established by and may be amended by the City Council subject to provisions of employment agreements. Employees are eligible to participate in the Plan on their date of hire. Employees are required to contribute 2% and the City is required to contribute 1% for mid-management and confidential employees and 2% for at-will management employees. Employees are immediately fully vested in their own contributions and City contributions. During the year ended June 30, 2022, the City’s and employee contributions to the 401a Plan were $45,042 and $52,030, respectively.
NOTE K – OTHER POSTEMPLOYMENT BENEFITS
Plan Descriptions: The City’s defined benefit OPEB Plan (City Plan) and the Fire District’s defined benefit OPEB Plan (Fire Plan) are both agent multiple-employer defined benefit plans that provide OPEB benefits to retirees that meet eligibility requirements. The City Council has the authority to establish and amend the benefit terms of each Plan according to the Memorandum of Understanding with the labor units. The City Plan and the Fire Plan both participate in the CalPERS California Employers' Retiree Benefit Trust (CERBT) Fund, which is a Section 115 trust fund administered by CalPERS. The CERBT issues a publicly available financial statements that may be obtained from CalPERS at www.calpers.ca.gov.
City Plan Benefits Provided: To qualify for postemployment medical benefits, an employee must be eligible for benefits and retire from the City. The City Plan does not provide dental and vision coverage. Employees must retire with CalPERS benefits to be eligible for City Plan benefits.
Nondisabled participants must be at least age 50 and have five years of service. Disabled participants do not have a minimum retirement age and must have five years of service.
Employees/retirees and their eligible spouses and dependents receive medical benefits offered through CalPERS.
For City retirees hired prior to July 2016 and enrolled in CalPERS health coverage, the City contributes a monthly payment equal to 100% of the current “Supplemental/Managed Monthly Employee Only Rate for Kaiser Senior Advantage” to CalPERS. CalPERS deducts the remaining cost of the medical insurance premium from the retirees account. The City reimburses the retiree for 90% of the Kaiser HMO premium rates less the payment made to CalPERS for the “Supplemental/Managed Monthly Employee Only Rate for Kaiser Senior Advantage.” For retirees hired in or after July 2016 and enrolled in CalPERS health coverage, the City contributes a monthly payment equal to 100% of the current “Supplemental/Managed Monthly Employee Only Rate for Kaiser Senior Advantage” to CalPERS. CalPERS deducts the remaining cost of the medical premium from the retirees account.
Covered dependents of eligible retirees include spouses, domestic partners, and children under age 26 and never married (or any age if handicapped, subject to CalPERS approval). Surviving spouses of deceased retirees are covered for life on the same basis as when the retiree was alive. There are no benefits for surviving spouses or dependent children of active employees beyond COBRA continuation.
4105
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
66 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Fire Plan Benefits Provided: Employees must retire with CalPERS benefits to be eligible for Fire Plan benefits. Nondisabled participants must be at least age 50 and have five years of service.
Disabled participants do not have a minimum retirement age and must have five years of service.
Employees/retirees and their eligible spouses and dependents receive medical benefits offered through CalPERS. The Fire Plan offers retirees and their dependents access to dental, vision and life insurance for the remainder of their lifetime at the same premium rates applicable to active employees.
For employees hired prior to June 1, 2010, the District contributes the same amount for retirees as is contributed for similarly situated active employees. The District contributes the full premium up to 95% of the premium (determined reflecting coverage level and Basic, Combination or Supplemental rate) for the Kaiser Bay Area plan offered by CalPERS.
For employees hired on or after June 1, 2010, the Fire Plan has vesting requirements. Under the vesting program, employees must have ten years of CalPERS service, five of which must be with the City, to receive a contribution of 50%. An additional 5% contribution is received for each additional year of service up a 100% contribution after 20 years of service. The premium paid by the Fire Plan for employees hired on or after June 1, 2010 is subject to a cap. For 2022, the caps were $816 for retiree only coverage, $1,548 for the retiree plus one dependent and $1,983 for the retiree plus 2 or more dependents.
Employees Covered by Benefit Terms: At the June 30, 2021 actuarial valuation date, the following employees were covered by the benefit terms:
City Plan Fire Plan
Inactive employees or beneficiaries currently receiving benefit payments 42 17 Inactive employees entitled to but not yet receiving benefit payments 12 Active employees 73 15
Total 127 32
Contributions: The City Council and Fire District Board have the authority to establish and amend the contribution requirements of the City and Fire District and employees with powers granted to it under the City Municipal Code and California Government Code, subject to the Memorandums of Understanding with employee bargaining units.
Employees are not required to contribute to the City or Fire Plans. During the fiscal year ended June 30, 2022, the City’s direct payments of insurance premiums were $424,985, implicit subsidy was $130,871 and cash contributions to the trust were $278,943, resulting in total contributions of $834,799. During the fiscal year ended June 30, 2022, the Fire District’s direct payments of insurance premiums were $252,987, implicit subsidy was $90,154 and cash contributions to the trust were $137,155, resulting in total contributions of $480,296. The City and Fire District make contributions to the CERBT, which is administered by CalPERS.
Net OPEB Liability: The City and Fire District's net OPEB liabilities were measured as of June 30, 2021, and the total OPEB liabilities used to calculate the net OPEB liabilities were determined by actuarial valuations as of June 30, 2020.
4106
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
67 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Actuarial Assumptions: The total OPEB liabilities at the measurement date were determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
City Plan Fire Plan
Valuation date June 30, 2021 June 30, 2021
Measurement date June 30, 2021 June 30, 2021
Actuarial cost method Entry-age normal cost method Entry-age normal cost method Actuarial assumptions:
Discount rate 6.00% 7.00%
Inflation 2.50% 2.50%
Salary increases 3.00% 3.00%
Investment rate of return 6.00% 7.00%
Mortality rates Derived using CalPERS membership data Derived using CalPERS membership data Pre-retirement turnover Derived using CalPERS membership data Derived using CalPERS membership data Healthcare trend rate 5.7% grading down to 4% in 2076 5.7% grading down to 4% in 2076 Percentage electing to
cover spouse 85%
60% for employees hired before and 45% for
employees hired on or after July 1, 2016;
Mortality information for the City and Fire Plans was developed from a blending of data and methodologies found in (1) the Society of Actuaries Mortality Improvement Scale MP-2021 Report and (2) the demographic assumptions used in the 2021Annual Report of the Board of Trustees of the Federal Old-Age and Survivors insurance and Federal Disability Insurance Trust Funds, published in 2021. The City and Fire Plans mortality improvement was based on the MacLeod Watts Scale 2020.
The pre-retirement turnover information was developed based on CalPERS’ specific data. For more details, please refer to the December 2017 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
The City and Fire District have both elected the CERBT Strategy 1 portfolio. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
4107
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
68 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Asset Class City Plan Fire Plan City Plan Fire Plan
Global equity 40.0% 59.0% 8.90% 8.90%
Fixed income 43.0% 25.0% 5.54% 5.54%
Real estate investment trusts (REITs) 8.0% 8.0% 7.92% 7.92% Treasury inflation protected securities (TIPS) 5.0% 5.0% 4.38% 4.38% Commodities 4.0% 3.0% 5.79% 5.79%
Total 100.0% 100.0%
Target Allocation
Long-term Expected
Rate of Return
Discount Rate: The discount rate used to measure the total City and Fire District OPEB liabilities was
6.00% and 7.05%, respectively. The City discount rate was lowered from 6.95% to 6.00% and the Fire District discount rate was lowered from 7.05% to 7.00%, from the previous measurement date. The projection of cash flows used to determine the discount rate assumed that City and Fire District contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the City and Fire Plans’ fiduciary net positions were projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments were applied to all periods of projected benefit payments to determine the total OPEB liabilities.
Changes in the Net OPEB Liability: Changes in the net OPEB liability were as follows during the year ended June 30, 2022:
Total OPEB Plan Fiduciary Net OPEB
City Plan Liability Net Position Liability/(Asset)
Balance at June 30, 2021 9,884,937 $ 5,525,161 $ 4,359,776 $ Changes in the year:
Service cost 441,947 441,947
Interest 700,679 700,679
Changes in assumptions 1,901,027 1,901,027
Difference between expected and actual experience 91,627 91,627 Contributions - employer 812,638 (812,638)
Net investment income 1,536,192 (1,536,192)
Benefit payments (490,357) (490,357)
Administrative expenses (2,116) 2,116
Net changes 2,644,923 1,856,357 788,566
Balance at June 30, 2022 12,529,860 $ 7,381,518 $ 5,148,342 $ Increase (Decrease)
4108
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
69 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Total OPEB Plan Fiduciary Net OPEB
Fire Plan Liability Net Position Liability/(Asset)
Balance at June 30, 2021 5,766,504 $ 2,991,166 $ 2,775,338 $ Changes in the year:
Service cost 231,790 231,790
Interest 411,091 411,091
Difference between expected and actual experience (122,741) (122,741) Changes in assumptions 192,051 192,051
Contributions - employer 511,759 (511,759)
Net investment income 857,965 (857,965)
Benefit payments (334,432) (334,432)
Administrative expenses (1,189) 1,189
Net changes 377,759 1,034,103 (656,344)
Balance at June 30, 2022 6,144,263 $ 4,025,269 $ 2,118,994 $ Total City and Fire Plans 18,674,123 $ 11,406,787 $ 7,267,336 $ Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates:
The following presents the net OPEB liability of the City and Fire District, as well as what the City and Fire District's net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate:
Current
1% Decrease Discount Rate 1% Increase
5.00% 6.00% 7.00%
Net OPEB liability - City Plan 6,881,589 $ 5, $ 3, 148,342 $ 729,496 Current
1% Decrease Discount Rate 1% Increase
6.00% 7.00% 8.00%
Net OPEB liability - Fire Plan 2,894,610 $ 2, $ 1, 118,994 $ 477,405 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following presents the net OPEB liability of the City and Fire District, as well as what the City and Fire District's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates:
Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB liability - City Plan 3,576,175 $ 5, $ 7, 148,342 $ 096,827 OPEB Plan Fiduciary Net Position: Detailed information about the City and Fire District Plan’s fiduciary net position is available in the separately issued CERBT financial report at www.calpers.ca.gov. 4109
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
70 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB liability - Fire Plan 1, $ 2, 420,888 $ 2, 118,994 $ 973,167 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources: For the year ended June 30, 2022, the City and Fire District recognized OPEB expense of $887,980 and $174,467, respectively, for a total OPEB expense of $1,062,447.
At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
City Plan of Resources of Resources
OPEB contributions subsequent to measurement date 834,799 $ Differences between actual and expected experience 79,793 ( $ 252,661) Changes in assumptions 2,213,103
Net differences between projected and actual earnings
on plan investments (787,087)
Total - City Plan 3,127,695 $ (1, $ 039,748)
Fire Plan
OPEB contributions subsequent to measurement date 480,296 $ Differences between actual and expected experience (965,174) $ Changes in assumptions 386,040 (55, 943)
Net differences between projected and actual earnings
on plan investments (450,761)
Total - Fire Plan 866,336 $ (1, $ 471,878)
Total - City and Fire Plans 3,994,031 $ (2, $ 511,626)
The amount reported as deferred outflows of resources related to contributions after the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended
June 30 City Plan Fire Plan Total
2023 159,722 $ (240,966) $ (81,244) $
2024 162,544 (237,661) (75,117)
2025 152,158 (241,951) (89,793)
2026 115,953 (241,632) (125,679)
2027 319,211 (62,576) 256,635
Thereafter 343,560 (61,052) 282,508
$ (1,085,838) 1,253,148 $ 167,310 $
4110
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
71 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Payable to the OPEB Plan: At June 30, 2022, there were no significant payables to the OPEB plans.
NOTE L – RISK MANAGEMENT
Insurance Coverages
The City is a member of the Pooled Liability Assurance Network Joint Powers Authority (Plan JPA) for liability coverage of $1.0 million with excess liability coverage of $29 million through commercial carriers, for total coverage of $30 million, subject to a deductible of $25,000. Property and vehicle coverage is $500,000 with excess liability coverage through commercial carriers of $999,500,000, for total coverage of $1 billion. Flood damage coverage is $25 million.
The City is also a member of the Shared Agency Risk Pool (SHARP), which is administered by the Plan JPA, for worker’s compensation insurance. Workers compensation insurance is provided by SHARP up to $250,000 and excess insurance exists through the Local Agency Worker’s Compensation Excess Joint Powers Authority (LAWCX) that results in a coverage limit of up to $5,000,000 per claim. Excess commercial insurance is retained by LAWCX up to $5 million. The City has no deductible for such claims. Insurance transactions are accounted for in the City’s General Fund.
The Plan, SHARP and LAWCX are governed by boards consisting of representatives from member agencies. The boards control the operations of the Plan, SHARP and LAWCX, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the boards. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Audited financial statements may be obtained from the Plan, SHARP and LAWCX at 1750 Creekside Drive, Suite 200, Sacramento, CA 95833.
The component unit Fire Protection District of the City obtains general, personal injury, fire damage, medical, products/completed operations annual aggregate, umbrella, management, cyber, auto, employee dishonesty and garage keepers liability insurance through its membership in the Fire Agencies Insurance Risk Authority (FAIRA). The District transfers the risk of loss to the Authority and is covered by the Authority from $10,000 to $1,000,000 per occurrence with an aggregate limit of $10,000,000 or $1 million for employee dishonesty coverage. Deductibles range from $250 to $7,500, depending on the coverage. The Fire Association Self Insurance System, a risk sharing pool, provides workers compensation insurance coverage for the Fire District. The System is self-insured for the first $750,000 of each claim and purchases commercial insurance excess coverage up to $5,000,000 per claim. The District has no deductible for works compensation insurance.
Liability for Uninsured Worker Compensation Claims: The City’s liability for uninsured worker compensation claims, including estimated claims incurred but not reported, was estimated by management based on prior years claims experience and was computed as follows as of June 30:
4111
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
72 NOTE L – RISK MANAGEMENT (Continued)
Year Ended Year Ended Year Ended
June 30, 2022 June 30, 2021 June 30, 2020
Unpaid claims, beginning of fiscal year 1,636,881 $ 1,064,318 $ 724,016 $ Incurred claims (including IBNRs) 815,192 935,941 501,074 Claim payments (318,092) ( ( 363,378) 160,772)
Unpaid claims, end of fiscal year 2,133,981 $ 1,636,881 $ 1,064,318 $ The City has had no settlements that exceeded insurance coverage in the last three fiscal years, and no changes in insurance coverage have accrued from the prior year. The liability for uninsured claims is typically liquidated by the Fire District Operations Special Revenue Fund.
NOTE M – OTHER COMMITMENTS AND CONTINGENT LIABILITIES
On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID19) pandemic. The COVID-19 outbreak disrupted supply chains and affected production and sales across a range of industries. The City has lost a significant amount of revenue due to the pandemic and has responded by reducing spending. The extent of the impact of COVID-19 on the City’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, and the impact on customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the financial condition or results of operations is uncertain.
The City participates in a number of federal and state grant programs subject to financial and compliance audits by the grantors or their representatives. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. Management believes that such disallowances, if any, would not have a material effect on the financial statements.
The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City.
The City has an agreement with the Napa County Flood Control and Water Conservation District (Napa Flood) to acquire water from the California State Water Project through the year 2035. Each year, the State determines the capital and operating costs associated with Napa Flood’s share of the North Bay Aqueduct as well a charge dependent on water deliveries. The City’s share of these costs is approximately 18%. The City is obligated to pay the capital component even if does not receive water. The amount paid under this contract during the year ended June 30, 2022 was approximately $2.1 million, of which $713,000 was related to the capital component. A similar payment will be required each year through 2035. The State Water Project contractors and State Department of Water Resources are currently negotiating to extend the contract beyond 2035.
In December 2019, the Council approved an agreement for consulting services for the Comprehensive General Plan 2040 Update in an amount not to exceed $1,466,574. As of June 30, 2022, $336,000 has been spent on this project.
4112
CITY OF AMERICAN CANYON
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2022
73 NOTE M – OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Continued) The City has a contractual relationship with Sites Project Authority (the Authority), which is developing the Sites Reservoir Project (the Project) in the Sacramento Valley. The Project is an offriver reservoir that would capture excess water from major storms to save for drier periods. Under the 2019 Reservoir Project Agreement, as amended, the City has agreed to pay its proportional share of yearly budgeted Authority operating costs for approved phases of the Project. The City currently has a participation of 4,000 acre-feet, resulting in a percentage participation in the Project of 2.39%, which could change based on State of California and United States Bureau of Reclamation final participation in the Project. Participation results in rights to a “Storage Allocation” in the Project and proportional rights to any future power generation revenue developed. The Storage Allocation may be transferred by the City with the written consent of Authority members, which may not be unreasonably withheld. During the years ended June 30, 2022 and 2021, the City contributed $145,500 and $400,000, respectively, to the Authority, which is reported as a non-depreciable asset in the City’s Water Fund.
In June 2021 the City was awarded a Federal Coronavirus Local Fiscal Recovery Fund allocation from the American Rescue Plan Act in the amount of approximately $4.9 million that may be used for eligible costs incurred from March 3, 2021 to December 31, 2024. The funds were received in two installments of $2.45 million in July 2021 and 2022. The funds may be used: 1) to respond to the COVID-19 public health emergency and support activities to decrease the spread of the virus; 2) address negative economic impacts caused by the public health emergency including assistance to households, small businesses, nonprofits, or to provide aid to impacted industries such as tourism, travel, and hospitality; 3) replace lost public sector revenue to the extent of the reduction in revenue was experienced due to the pandemic; 4) provide premium pay to eligible workers or grants to employers of workers who perform essential work during the public health emergency; and 5) invest in water, sewer, and broadband infrastructure. Unspent amounts would be returned to the U.S. Treasury.
NOTE N – SUBSEQUENT EVENTS
In November 2022, the Council approved construction contracts totaling $1,796,000 for the Green Island Road utility underground project.
In August 2022, the Fire District Board approve a financing agreement of $1,842,000 for the purchase of two fire engines. Repayment will be made over seven years at an interest rate of 2.54%.
NOTE O – RESTATEMENT
During the year ended June 30, 2022, the City implemented GASB Statement No. 87, Leases, which resulted in recognition of certain lease assets and liabilities for leases with a term of over twelve months. As a result, lease assets and a lease liability of $224,687 was recorded as of July 1, 2021.
See Note G for additional information about the City’s leases.
4113
(This page intentionally left blank.)
4114
REQUIRED SUPPLEMENTARY INFORMATION
4115
(This page intentionally left blank.)
4116
CITY OF AMERICAN CANYON
Budget and Actual
General Fund
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Property taxes 11,965,700 $ 12,032,503 $ 12,162,299 $ 129,796 $ Sales taxes 2,730,000 2,681,142 3,095,329 414,187
Other taxes 2,442,800 2,583,871 2,808,307 224,436
Fines and forfeitures 95,000 65,413 100,682 35,269
Licenses and permits 579,500 587,304 761,858 174,554
Intergovernmental 86,300 92,579 93,531 952
Charges for services 951,900 1,532,609 1,649,843 117,234 Use of money and property 397,983 746,050 (846,829) (1,244,812) Other 679,664 642,900 505,632 (174,032)
TOTAL REVENUES 20,240,150 20,653,068 20,330,652 (322,416)
EXPENDITURES
Current:
General government 6,520,295 7,327,290 6,643,362 683,928 Public safety 7,892,618 7,864,566 7,949,173 (56,555)
Public works 2,681,000 2,706,478 2,306,473 400,005
Community development 1,698,400 2,216,521 2,135,066 81,455 Parks and recreation 3,216,589 3,457,080 2,717,250 739,830 Storm drain 528,900 422,814 380,895 41,919
Capital outlay 313,485 298,000 124,864 188,621
TOTAL EXPENDITURES 22,807,750 24,336,286 22,257,083 2,079,203
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (2,567,600) (3,683,218) (1,926,431) 1,756,787
OTHER FINANCING SOURCES (USES)
Proceeds from sale of assets 10,000 10,000 10,000
Transfers in 2,717,900 2,856,246 2,433,742 (422,504)
Transfers out (156,500) (203,171) (135,380) 67,791
TOTAL OTHER FINANCING
SOURCES AND USES 2,663,075 2,571,400 2,308,362 (354,713) NET CHANGE IN FUND BALANCE 3,800 (1,020,143) 381,931 1,402,074 Fund balance, beginning of year 12,204,624 12,204,624 12,204,624 FUND BALANCE, END OF YEAR 12,208,424 $ 11,184,481 $ 12,586,555 $ 1,402,074 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 74 4117
CITY OF AMERICAN CANYON
Budget and Actual
Fire District Operations Special Revenue Fund
For the year ended June 30, 2022
Budgeted Amounts Actual Amounts
Variance with
Final Budget
Original Final
REVENUES
Property taxes 5,016,242 $ 5,016,242 $ 5,125,894 $ 109,652 $ Other taxes 665,763 665,763 696,626 30,863
Charges for services 298,500 741,500 774,326 32,826
Use of money and property 79,354 79,354 (67,837) (147,191) Other 90,000 90,000 182,019 92,019
TOTAL REVENUES 6,149,859 6,592,859 6,711,028 118,169
EXPENDITURES
Current:
Public safety 6,469,653 6,302,653 6,852,495 (382,842)
Capital outlay 176,000 176,000 81,475 94,525
TOTAL EXPENDITURES 6,478,653 6,645,653 6,933,970 (288,317)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (328,794) (52,794) (222,942) (170,148) NET CHANGE IN FUND BALANCE (328,794) (52,794) (222,942) (170,148) Fund balance, beginning of year 5,853,738 5,853,738 5,853,738 FUND BALANCE, END OF YEAR 5,524,944 $ 5,800,944 $ 5,630,796 $ (170,148) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 75 4118
CITY OF AMERICAN CANYON
Budget and Actual
CDBG, CalHome and HOME Loan Development Special Revenue Fund For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Intergovernmental 1,410,000 $ 726,458 $ 53,626 $ (672,832) $ Use of money and property 27 106 79
Other 6,480 1,200 37,083 30,603
TOTAL REVENUES 1,411,200 732,965 90,815 (642,150)
EXPENDITURES
Current:
Community development 1,410,000 1,410,000 64,075 1,345,925 TOTAL EXPENDITURES 1,410,000 1,410,000 64,075 1,345,925
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,200 (677,035) 26,740 703,775 NET CHANGE IN FUND BALANCE 1,200 (677,035) 26,740 703,775 Fund balance, beginning of year 14,151 14,151 14,151
FUND BALANCE, END OF YEAR 15,351 $ (662,884) $ 40,891 $ 703,775 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 76 4119
CITY OF AMERICAN CANYON
Budget and Actual
State and Federal Grants - City Special Revenue Fund
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Intergovernmental 7,504,375 $ 12,402,431 $ 3,923,345 $ (8,479,086) $ TOTAL REVENUES 7,504,375 12,402,431 3,923,345 (8,479,086)
EXPENDITURES
Current:
Public works 160,000 160,000 266,973 (106,973)
TOTAL EXPENDITURES 160,000 160,000 266,973 (106,973)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 7,344,375 12,242,431 3,656,372 (8,586,059)
OTHER FINANCING SOURCES (USES)
Transfers out (7,344,375) (8,049,054) (3,699,257) 4,349,797
TOTAL OTHER FINANCING
SOURCES AND USES (8,049,054) (7,344,375) (3,699,257) 4,349,797 NET CHANGE IN FUND BALANCE 4,193 (42,885) ,377 (4,236,262) Fund balance, beginning of year (618,602) (618,602) (618,602) FUND BALANCE, END OF YEAR (618,602) $ 3,574,775 $ (661,487) $ (4,236,262) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 77 4120
June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.21322% 0.20221% 0.19697% 0.19312% 0.19133% 0.18829% 0.19150% 0.20960% Proportionate share of the net pension liability 4,048,631 $ 8,529,197 $ 7,887,778 $ 7,278,267 $ 7,542,231 $ 6,540,954 $ 5,334,328 $ 5,166,818 $ Covered payroll - measurement period 5,771,318 $ 6,383,583 $ 5,876,867 $ 5,993,406 $ 5,979,018 $ 5,417,416 $ 5,157,279 $ 5,062,574 $ Proportionate share of the net pension liability
as a percentage of covered payroll 70.15% 133.61% 134.22% 121.44% 126.14% 120.74% 103.43% 102.06% Plan fiduciary net position as a percentage of
the total pension liability 90.01% 77.32% 77.41% 76.60% 74.15% 71.92% 78.22% 77.38% Notes to Schedule:
Change in Benefit Terms: None.
Discount rate changes (measurement date) 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution (actuarially
determined) - employer fiscal year 1,245,432 $ 1,099,634 $ 1,072,824 $ 990,170 $ 918,516 $ 903,780 $ 816,543 $ 737,934 $ Contributions in relation to the actuarially
determined contributions (1,245,432) (1,099,634) (1,072,824) (990,170) (918,516) (903,780) (816,543) (737,934) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ Covered payroll - employer fiscal year 6,427,864 $ 5,771,318 $ 6,383,583 $ 5,876,867 $ 5,993,406 $ 5,979,018 $ 5,417,416 $ 5,157,279 $ Contributions as a percentage of covered payroll 19.38% 19.05% 16.81% 16.85% 15.33% 15.12% 15.07% 14.31% Valuation date for contribution rates - June 30: 2019 2018 2017 2016 2015 2014 2013 2012 Valuation date for financial reporting - June 30: 2020 2019 2018 2017 2016 2015 2014 2013 Measurement date - June 30: 2021 2020 2019 2018 2017 2016 2015 2014 Methods and assumptions used to determine contribution rates:
Actuarial method
Amortization method
Remaining amortization period
Asset valuation method
Inflation 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Investment rate of return and discount rate
used to compute contribution rate 7.00% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
CITY OF AMERICAN CANYON
Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this date. Information will be presented prospectively as it becomes available.
Varies by entry age and service
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF THE PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY - CITY MISCELLANEOUS PLAN (UNAUDITED) Last 10 Years
Market value
50-67 years. Probablilities of retirement are based on the most recent CalPERS Experience Study.
Most recent CalPERS Experience Study
Changes in assumptions:
SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -
Entry age normal cost method
Level percentage of payroll, closed
Varies, not more than 30 years
Last 10 Years
CITY MISCELLANEOUS PLAN (UNAUDITED)
78 4121
June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.14211% 0.12336% 0.12236% 0.12252% 0.12085% 0.12357% 0.12520% 0.11999% Proportionate share of the net pension liability 4,987,426 $ 8,218,591 $ 7,638,514 $ 7,189,025 $ 7,220,857 $ 6,399,934 $ 5,159,412 $ 4,500,491 $ Covered payroll - measurement period 1,825,049 $ 2,023,975 $ 1,891,216 $ 1,824,180 $ 1,944,380 $ 1,524,899 $ 1,501,544 $ 1,606,377 $ Proportionate share of the net pension liability
as a percentage of covered payroll 273.28% 406.06% 403.89% 394.10% 371.37% 419.70% 343.61% 280.16% Plan fiduciary net position as a percentage of
the total pension liability 83.45% 71.64% 72.20% 72.74% 71.56% 71.92% 75.49% 77.83% Notes to Schedule:
Changes in assumptions:
Discount rate changes (measurement date) 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution (actuarially
determined) - employer fiscal year 1,000,900 $ 874,486 $ 1,007,896 $ 881,120 $ 781,173 $ 712,349 $ 622,420 $ 549,070 $ Contributions in relation to the actuarially
determined contributions (1,000,900) (874,486) (1,007,896) (881,120) (781,173) (712,349) (622,420) (549,070) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $
Covered payroll - fiscal year 2,291,394 $ 1,825,049 $ 2,023,975 $ 1,891,216 $ 1,824,180 $ 1,944,380 $ 1,524,899 $ 1,501,544 $ Contributions as a percentage of covered payroll 43.68% 47.92% 49.80% 46.59% 42.82% 36.64% 40.82% 36.57% Valuation date for contribution rates - June 30: 2019 2018 2017 2016 2015 2014 2013 2012 Valuation date for financial reporting - June 30: 2020 2019 2018 2017 2016 2015 2014 2013 Measurement date - June 30: 2021 2020 2019 2018 2017 2016 2015 2014 Methods and assumptions used to determine contribution rates:
Actuarial method
Amortization method
Remaining amortization period
Asset valuation method
Inflation 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Investment rate of return and discount rate
used to compute contribution rate 7.00% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this date. Information will be presented prospectively as it becomes available.
FIRE SAFETY PLAN (UNAUDITED)
Varies by entry age and service
Entry age normal cost method
Level percentage of payroll, closed
Varies, not more than 30 years
Market value
50-57 years. Probablilities of retirement are based on the most recent CalPERS Experience Study.
Most recent CalPERS Experience Study
Last 10 Years
Change in Benefit Terms: None
SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -
Last 10 Years
CITY OF AMERICAN CANYON
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF THE PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY - FIRE SAFETY PLAN (UNAUDITED)
79 4122
June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.00230% 0.00129% 0.00178% 0.00233% 0.00232% 0.00270% 0.00304% 0.00294% Proportionate share of the net pension liability 43,738 $ 54,399 $ 71,296 $ 87,920 $ 91,294 $ 93,760 $ 83,520 $ 72,565 $ Covered payroll - measurement period 73,720 $ 27,107 $ N/A N/A N/A N/A N/A N/A Proportionate share of the net pension liability
as a percentage of covered payroll 59.33% 200.68% N/A N/A N/A N/A N/A N/A Plan fiduciary net position as a percentage of
the total pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 64.80% 68.95% 73.76% Notes to Schedule:
Changes in assumptions:
Discount rate changes (measurement date) 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2021 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution (actuarially
determined) - employer fiscal year 18,869 $ 24,560 $ 20,740 $ 18,930 $ 19,016 $ 6,602 $ 6,056 $ 5,443 $ Contributions in relation to the actuarially
determined contributions (18,869) (24,560) (20,740) (18,930) (19,016) (6,602) (6,056) (5,443) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll - fiscal year 79,922 $ 73,720 $ 27,107 $ N/A N/A N/A N/A N/A Contributions as a percentage of covered payroll 23.61% 33.32% 76.51% N/A N/A N/A N/A N/A Valuation date for contribution rates - June 30: 2019 2018 2017 2016 2015 2014 2013 2012 Valuation date for financial reporting - June 30: 2020 2019 2018 2017 2016 2015 2014 2013 Measurement date - June 30: 2021 2020 2019 2018 2017 2016 2015 2014 Methods and assumptions used to determine contribution rates:
Single Employers Example
Amortization method
Remaining amortization period
Asset valuation method
Inflation 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Investment rate of return and discount rate
used to compute contribution rate 7.00% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Change in Benefit Terms: None
Last 10 Years
CITY OF AMERICAN CANYON
Required Supplementary Information
For the Year Ended June 30, 2022
SCHEDULE OF THE PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY - FIRE MISCELLANEOUS PLAN (UNAUDITED) Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this date. Information will be presented prospectively as it becomes available.
SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -
FIRE MISCELLANEOUS PLAN (UNAUDITED)
Last 10 Years
The plan did not have active employees from 2015 - 2019, so there was no covered payroll during those fiscal years.
Entry age normal cost method
Level percentage of payroll, closed
Varies, not more than 30 years
Market value
Varies by entry age and service
50-67 years. Probablilities of retirement are based on the most recent CalPERS Experience Study.
Most recent CalPERS Experience Study
80 4123
2022 2021 2020 2019 2018
Total OPEB liability
Service cost 441,947 $ 429,075 $ 335,883 $ 326,100 $ 326,100 $ Interest 700,679 657,168 602,996 553,400 519,700
Changes in assumptions 1,901,027 945,591
Differences between expected and
actual experience 91,627 (416,017) 2,700
Benefit payments (490,357) (455,763) (390,596) (351,400) (407,000) Net change in total OPEB liability 2,644,923 630,480 1,077,857 530,800 438,800 Total OPEB liability - beginning 9,884,937 9,254,457 8,176,600 7,645,800 7,207,000 Total OPEB liability - ending (a) 12,529,860 $ 9,884,937 $ 9,254,457 $ 8,176,600 $ 7,645,800 $ Plan fiduciary net position
Contributions - employer 812,638 $ 571,500 $ 576,296 $ 693,900 $ 673,700 $ Net investment income 1,536,192 186,101 300,131 322,826 366,285 Benefit payments (490,357) (455,763) (390,596) (351,400) (407,000) Administrative expenses (2,116) (2,575) (1,033) (2,126) (1,785) Net change in plan fiduciary net position 1,856,357 299,263 484,798 663,200 631,200 Plan fiduciary net position - beginning 5,525,161 5,225,898 4,741,100 4,077,900 3,446,700 Plan fiduciary net position - ending (b) 7,381,518 $ 5,525,161 $ 5,225,898 $ 4,741,100 $ 4,077,900 $ Net OPEB liability - ending (a)-(b) 5,148,342 $ 4,359,776 $ 4,028,559 $ 3,435,500 $ 3,567,900 $ Plan fiduciary net position as a percentage
of the total OPEB liability 58.91% 55.89% 56.47% 57.98% 53.34% Covered-employee payroll - measurement
period 6,734,681 $ 6,399,829 $ 5,955,051 $ 6,053,800 $ 5,811,270 $ Net OPEB liability as percentage of
covered-employee payroll 76.45% 68.12% 67.65% 56.75% 61.40% Notes to Schedule:
Valuation date - June 30 2021 2019 2019 2017 2017
Measurement period - fiscal year ended June 30 2021 2020 2019 2018 2017 Benefit changes: None None None None None
Changes in assumptions:
Discount rate 6.00% 6.95% 6.95% 7.25% 7.25%
Health care trend:
Initial rate 5.70% 5.40% 5.40% Various Various
Trends down to 4.00% 4.00% 4.00% 4.00% 4.00%
In year 2076 2076 2076 2030 2030
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.
For the Year Ended June 30, 2022
CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios - City Plan 81 4124
2022 2021 2020 2019 2018
Total OPEB liability
Service cost 231,790 $ 230,045 $ 226,062 $ 210,881 $ 146,079 $ Interest 411,091 388,764 417,289 393,002 413,368
Differences between expected and
actual experience (122,741) (837,691) (705,918)
Changes in assumptions 192,051 (72,183) 184,537 126,927 60,313 Benefit payments (334,432) (287,603) (267,920) (266,215) (250,572) Net change in total OPEB liability 377,759 259,023 (277,723) 464,595 (336,730) Total OPEB liability - beginning 5,766,504 5,507,481 5,785,204 5,320,609 5,657,339 Total OPEB liability - ending (a) 6,144,263 $ 5,766,504 $ 5,507,481 $ 5,785,204 $ 5,320,609 $ Plan fiduciary net position
Contributions - employer 511,759 $ 517,331 $ 483,301 $ 530,288 $ 414,364 $ Net investment income 857,965 101,238 149,305 162,465 175,524 Benefit payments (334,432) (287,603) (267,920) (266,215) (250,572) Administrative and other expenses (1,189) (1,392) (530) (3,591) (904) Net change in plan fiduciary net position 1,034,103 329,574 364,156 422,947 338,412 Plan fiduciary net position - beginning 2,991,166 2,661,592 2,297,436 1,874,489 1,536,077 Plan fiduciary net position - ending (b) 4,025,269 $ 2,991,166 $ 2,661,592 $ 2,297,436 $ 1,874,489 $ Net OPEB liability - ending (a)-(b) 2,118,994 $ 2,775,338 $ 2,845,889 $ 3,487,768 $ 3,446,120 $ Plan fiduciary net position as a percentage
of the total OPEB liability 65.51% 51.87% 48.33% 39.71% 35.23% Covered-employee payroll - measurement
period 2,172,958 $ 2,277,760 $ 2,837,425 $ 2,509,387 $ 2,167,463 $ Net OPEB liability as percentage of
covered-employee payroll 97.52% 121.85% 100.30% 138.99% 158.99% Notes to Schedule:
Valuation date - June 30 2021 2019 2019 2017 2017
Measurement period - fiscal year ended - June 30 2021 2020 2019 2018 2017 Benefit changes: None None None None None
Changes in assumptions:
Discount rate 7.00% 7.05% 6.95% 7.10% 7.28%
Health care trend:
Initial rate 5.70% 6.50% 6.50% 7.50% 8.00%
Trends down to 4.00% 5.00% 5.00% 5.00% 5.00%
In year 2076 2025 2025 2025 2024
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.
CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios - Fire Plan For the Year Ended June 30, 2022
82 4125
2022 2021 2020 2019 2018
Actuarially determined contribution -
employer fiscal year 834,799 $ 812,638 $ 571,500 $ 576,700 $ 582,400 $ Contributions in relation to the actuarially
determined contributions (834,799) (812,638) (571,500) (578,522) (692,000) Contribution deficiency (excess) - $ - $ - $ (1,822) $ (109,600) $ Covered-employee payroll - employer
fiscal year (revised in 2020) 6,936,721 $ 6,734,681 $ 6,399,829 $ 5,955,051 $ 6,053,800 $ Contributions as a percentage of covered
payroll 12.03% 12.07% 8.93% 9.71% 11.43%
Notes to Schedule:
Valuation date - June 30 2021 2019 2019 2017 2017
Measurement period - fiscal year ended June 30 2021 2020 2019 2018 2017 Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Discount rate 5.90% 6.95% 6.95% 7.25% 7.25%
Inflation 2.50% 2.50% 2.50% Not stated Not stated
Payroll growth 3.00% 3.00% 3.00% 3.25% 3.25%
Investment rate of return 5.90% 6.95% 6.95% 7.25% 7.25% Healthcare cost-trend rate, initial 5.70% 5.40% 5.40% Varies Varies Heathcare trending down to 4.00% 4.00% 4.00% 4.00% 4.00% Retirement age
Mortality
Assumed HMO/PPO split Not stated Not stated Not stated 65%/35% 65%/35% Percentage electing to cover spouse (1) (1) (1) 60% 60% (1) 60% for employees hired before July 1, 2016; 45% for employees hired on/after July 1, 2016 Entry Age Normal Cost Method
Level percentage of payroll, closed
For the Year Ended June 30, 2022
CITY OF AMERICAN CANYON
Last Ten Fiscal Years
Required Supplementary Information (Unaudited)
Schedule of Contributions to the OBEP Plan - City Plan
30 years
Market value of assets
Most recent CalPERS Experience Study
Most recent CalPERS Experience Study
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported. 83 4126
2022 2021 2020 2019 2018
Contractually determined contribution -
employer fiscal year 480,296 $ 467,573 $ 507,998 $ 492,634 $ 457,056 $ Contributions in relation to the contractually
determined contributions (480,296) (511,759) (507,998) (483,301) (530,288) Contribution deficiency (excess) - $ (44,186) $ - $ 9,333 $ (73,232) $ Covered-employee payroll - employer
fiscal year 2,238,147 $ 2,172,958 $ 2,922,548 $ 2,837,425 $ 2,509,387 $ Contributions as a percentage of covered
payroll 21.46% 23.55% 17.38% 17.03% 21.13%
Notes to Schedule:
Valuation date - June 30 2021 2019 2019 2017 2017
Measurement period - fiscal year ended June 30 2021 2020 2019 2018 2017 Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Discount rate 6.90% 7.05% 6.95% 7.10% 7.28%
Inflation 2.50% 2.75% 2.50% 2.75% 2.75%
Payroll growth 3.00% 3.25% 3.00% 3.25% 3.25%
Investment rate of return 6.90% 7.05% 7.05% 7.10% 7.28% Healthcare trend, initial 5.70% 6.50% 6.50% 7.50% 8.00% Healthcare trending down to 4.00% 5.00% 5.00% 5.00% 5.00% Retirement age
Mortality
Percentage electing to cover spouse 85% 85% 85% 85% 85% Level percentage of payroll, closed
30 years
Market value of assets
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.
CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Contributions to the OPEB Plan - Fire Plan
Last Ten Fiscal Years
For the Year Ended June 30, 2022
Most recent CalPERS Experience Study
Most recent CalPERS Experience Study
Entry Age Normal Cost Method
84 4127
(This page intentionally left blank.)
4128
SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON
MAJOR CAPITAL PROJECTS AND DEBT SERVICE FUNDS
4129
(This page intentionally left blank.)
4130
CITY OF AMERICAN CANYON
Budget and Actual
City Capital Projects
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Other 26,000 $ 26,000 $
TOTAL REVENUES 26,000 26,000
EXPENDITURES
Capital outlay $ 20,267,668 19,250,600 $ 4,755,025 15,512,643 TOTAL EXPENDITURES 19,250,600 20,267,668 4,862,025 15,405,643
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (19,250,600) (20,267,668) (4,836,025) 15,431,643
OTHER FINANCING SOURCES (USES)
Transfers in 19,250,600 22,049,565 4,718,436 (17,331,129)
TOTAL OTHER FINANCING
SOURCES AND USES 22,049,565 19,250,600 4,718,436 (17,331,129) NET CHANGE IN FUND BALANCE 1,781,897 (117,589) (1,899,486) Fund balance, beginning of year 219,437 219,437 219,437 FUND BALANCE, END OF YEAR 219,437 $ 2,001,334 $ 101,848 $ (1,899,486) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 85 4131
CITY OF AMERICAN CANYON
Budget and Actual
Affordable Housing Capital Projects Fund
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 429,200 $ 47,451 $ 22,105 $ (25,346) $ Use of money and property 273 1,400 336 63
Other 3,138 3,138
TOTAL REVENUES 430,600 50,862 25,579 (25,283)
EXPENDITURES
Current:
Community development 138,300 130,000 45,000 85,000
TOTAL EXPENDITURES 138,300 130,000 45,000 85,000
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 292,300 (79,138) (19,421) 59,717 NET CHANGE IN FUND BALANCE 292,300 (79,138) (19,421) 59,717 Fund balance, beginning of year 262,010 262,010 262,010 FUND BALANCE, END OF YEAR 554,310 $ 182,872 $ 242,589 $ 59,717 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 86 4132
NON-MAJOR GOVERNMENTAL FUNDS
4133
SPECIAL REVENUE FUNDS
Storm Drainage Special Revenue Fund – Accounts for the proceeds and expenditures of sales taxes received under the Napa County Flood Protection Sales Tax.
Measure T Streets and Roads – Accounts for the voter approved sales tax funds received for the maintenance, reconstruction and rehabilitation of streets, roads and transportation infrastructure.
Gas Tax – Accounts for proceeds and expenditures of gas tax revenue received under the California Streets and Highways Code.
BEGIN Program – Accounts for revenue granted by the California Department of Housing and Community Development to reduce local regulatory barriers to affordable homeownership housing and provide down-payment assistance loans to qualifying homebuyers.
State Supplemental Law Enforcement – Accounts for revenue granted from the state General Fund for Citizen Option for Public Safety (COPS) program to provide supplemental public safety services for front line law enforcement including anti-gang, community crime prevention and juvenile justice programs.
La Vigne Landscape and Lighting – Accounts for maintenance expenses of the three District zones which are paid for through property tax assessments placed on owner’s annual tax bills.
La Vigne Open Space – Accounts for the costs to maintain open space at the La Vigne Open Space.
Newell Park Open Space – Accounts for the costs to maintain open space at the Newell Open Space.
State and Federal Grants - Fire – Accounts for State and Federal Grants received for fire services.
Cannabis – Accounts for developer deposits and fees received to reimburse the City for costs associated with reviewing commercial cannabis business permits and conditional use permits.
Community Facilities District – Accounts for resources accumulated from property owners for Community Facilities District maintenance.
General Plan Update – Accounts for fees collected for the purpose of updating the City’s general plan to meet the demand of new development.
Legal Settlement – Accounts for legal settlements to be used for specific purposes or projects.
CAPITAL PROJECTS FUNDS
Fire Mitigation – Accounts for a special voter approved new development tax for the purchase of the fire apparatus and facilities.
Park Improvement – Accounts for impact fees collected by new development to be used for adding new parks, park improvements, and recreation facilities.
Traffic Impact – Accounts for impact fees collected by new development to be used for street improvements.
Infrastructure – Accounts for bond proceeds restricted for street and road modernization projects.
Civic Facilities – Accounts for impact fees collected by new development to be used for Civic Facilities improvement projects.
Utility Underground – Accounts for fees collected from developers in lieu of providing undergrounding of utilities.
4134
Zero Water Footprint – Accounts for mitigation monies collected to offset new water and sewer capital demands associated with development projects.
DEBT SERVICE FUNDS
Cabernet Village Lease – Accounts for debt service on lease financing for the purchase of the commercial office building at 4381 Broadway Street which was converted to a new City Hall facility.
Engie City – Accounts for debt service on lease financing for the purchase of equipment for the City.
Engie Fire – Accounts for debt service on lease financing for the purchase of equipment for fire services. 4135
Storm
Drainage
Measure T -
Streets and
Roads Gas Tax
BEGIN
Program
State
Supplemental
Law
Enforcement
ASSETS
Cash and investments $ 3,109,971 6,577,096 $ 1,777,604 $ 73,273 $ 4,620 $ Restricted cash and investments
Taxes receivable 838,689 78,149
Accounts receivable, net
Interest receivable 5,320 1,931 3,120 30
Due from other governments 1,976 65,271
Due from other funds
Loans receivable, net 92,725
TOTAL ASSETS 6,581,003 $ 3,953,980 $ 1,858,873 $ 165,998 $ 69,921 $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ 14,224
Due to other funds
TOTAL LIABILITIES 14,224
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue $ 1,976 375,926 $ 92,725 $ 65,271
TOTAL DEFERRED INFLOWS
OF RESOURCES 1,976 375,926 92,725 65,271
FUND BALANCES
Restricted for:
Public safety 4,650
Public works 3,563,830 $ 1,858,873
Debt service
Storm drain projects 6,579,027
Community development,
planning and building 73,273
Parks
Other activities
Assigned
Unassigned
TOTAL FUND BALANCES (DEFICITS) 3,563,830 6,579,027 1,858,873 73,273 4,650
TOTAL LIABILITIES,
DEFERRED INFLOWS AND
FUND BALANCES 6,581,003 $ 3,953,980 $ 1,858,873 $ 165,998 $ 69,921 $
CITY OF AMERICAN CANYON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
SPECIAL REVENUE FUNDS
87 4136
La Vigne
Landscape
and Lighting
La Vigne
Open Space
Newell Park
Open Space
State and
Federal
Grants - Fire Cannabis
Community
Facilities
District
General Plan
Update
Legal
Settlement
$ 177,953 2,977,437 $ 243,983 $ 5,891 $ 232,571 $ 423,565 $
2,507 61 $
304 2,222 417 18 398 725
$ 178,257 2,982,166 $ 244,400 $ 5,891 $ - $ 79 $ 232,969 $ 424,290 $ $ 3,232 37,706 $ 4,878 $ 129,895 $
13,882 $ 243,868
3,232 37,706 13,882 248,746 129,895
$ 5,891
2,944,460 $ 424,290
244,400 175,025 $
103,074
(13,882) (248,667)
175,025 2,944,460 244,400 5,891 (13,882) (248,667) 103,074 424,290 $ 178,257 2,982,166 $ 244,400 $ 5,891 $ - $ 79 $ 232,969 $ 424,290 $
SPECIAL REVENUE FUNDS
88 4137
Total
Nonmajor
Special
Revenue Funds
Fire
Mitigation
Park
Improvement Traffic Impact Infrastructure
ASSETS
Cash and investments $ 990,684 15,603,964 $ 1,679,766 $ 3,368,589 $ 31,905 $ Restricted cash and investments 290,941
Taxes receivable 919,406
Accounts receivable, net 305 179,796
Interest receivable 1,580 14,485 2,873 55
Due from other governments 67,247
Due from other funds
Loans receivable, net 92,725
TOTAL ASSETS 16,697,827 $ 992,569 $ 1,682,639 $ 3,548,385 $ 322,901 $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ 833 189,935 $ 71,234 $
Due to other funds 257,750
TOTAL LIABILITIES 447,685 833 71,234
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 535,898
TOTAL DEFERRED INFLOWS
OF RESOURCES 535,898
FUND BALANCES
Restricted for:
Public safety 992,569 10,541 $
Public works 3,477,151 8,791,453 322,901 $
Debt service
Storm drain projects 6,579,027
Community development,
planning and building 73,273
Parks 419,425 1,681,806
Other activities
Assigned 103,074
Unassigned (262,549)
TOTAL FUND BALANCES (DEFICITS) 992,569 15,714,244 1,681,806 3,477,151 322,901
TOTAL LIABILITIES,
DEFERRED INFLOWS AND
FUND BALANCES 16,697,827 $ 992,569 $ 1,682,639 $ 3,548,385 $ 322,901 $
CITY OF AMERICAN CANYON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
CAPITAL PROJECTS FUNDS
89 4138
Civic
Facilities
Capital
Projects
Utility
Underground
Zero Water
Footprint CP
Total
Nonmajor
Capital
Projects Funds
Cabernet
Village Lease
Debt Service
Engie City
Debt Service
Engie Fire
Debt Service
Total
Nonmajor
Debt Service
Funds
$ 160,498 1,373,323 $ 477,147 $ 8,081,912 $
290,941
180,101
275 2,349 817 7,949
153,435 $ 153,435 $
$ 160,773 1,375,672 $ 477,964 $ 8,560,903 $ - $ 153,435 $ - $ 153,435 $ 72,067 $ 1,734 $ 1,734 $
19,076 19,076
72,067 20,810 20,810
992,569
$ 160,773 1,375,672 $ 477,964 $ 5,814,461
1,681,806
153,435 $ 153,435
(20,810) (20,810)
160,773 1,375,672 477,964 8,488,836 153,435 (20,810) 132,625 $ 160,773 1,375,672 $ 477,964 $ 8,560,903 $ - $ 153,435 $ - $ 153,435 $
CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS
90 4139
(This page intentionally left blank.)
4140
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 23,685,876
Restricted cash and investments 290,941
Taxes receivable 919,406
Accounts receivable, net 180,101
Interest receivable 22,434
Due from other governments 67,247
Due from other funds 153,435
Loans receivable, net 92,725
TOTAL ASSETS 25,412,165 $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ 263,736
Due to other funds 276,826
TOTAL LIABILITIES 540,562
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 535,898
TOTAL DEFERRED INFLOWS
OF RESOURCES 535,898
FUND BALANCES
Restricted for:
Public safety 1,003,110
Public works 14,605,914
Debt service
Storm drain projects 6,579,027
Community development,
planning and building 73,273
Parks 2,101,231
Other activities 153,435
Assigned 103,074
Unassigned (283,359)
TOTAL FUND BALANCES (DEFICITS) 24,335,705
TOTAL LIABILITIES,
DEFERRED INFLOWS AND
FUND BALANCES 25,412,165 $
CITY OF AMERICAN CANYON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
91 4141
Storm Drainage
Measure TStreets and
Roads Gas Tax
BEGIN
Program
State
Supplemental
Law
Enforcement
REVENUES
Sales taxes $ 1,880,971 4,408 $
Special assessments
Intergovernmental 901,572 $ 163,372 $
Charges for services
Use of money and property 9,566 (80,868) 6,215 119
TOTAL REVENUES (76,460) 1,890,537 907,787 163,491
EXPENDITURES
Current:
General government
Public works 1,946
Community development
Parks and recreation
Debt Service:
Principal
Interest and other charges
TOTAL EXPENDITURES 1,946
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,890,537 (76,460) 905,841 163,491
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (29,721) (380,737) (310,057) (163,491)
TOTAL OTHER FINANCING
SOURCES AND USES (29,721) (380,737) (310,057) (163,491) NET CHANGE IN FUND BALANCES (457,197) 1,860,816 595,784 Fund balances (deficits), beginning of year 1,703,014 7,036,224 1,263,089 73,273 $ 4,650
FUND BALANCES (DEFICITS),
END OF YEAR 6,579,027 $ 3,563,830 $ 1,858,873 $ 73,273 $ 4,650 $
CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
SPECIAL REVENUE FUNDS
92 4142
La Vigne
Landscape
and Lighting
La Vigne
Open Space
Newell Park
Open Space
State and
Federal
Grants - Fire Cannabis
Community
Facilities
District
General Plan
Update
Legal
Settlement
$ 610,302 55,141 $
6,913 $
639 (24,576) $ 7,370 $ 33 823 1,522 $
639 585,726 7,370 55,174 7,736 1,522
129,894
361,077
3,500 $
3,232
3,232 361,077 3,500 129,894
(2,593) 224,649 7,370 (3,500) 55,174 (122,158) 1,522
(370,257)
(370,257)
(2,593) 224,649 7,370 (3,500) (315,083) (122,158) 1,522 177,618 2,719,811 237,030 5,891 $ (10,382) 66,416 225,232 422,768 $ 175,025 2,944,460 $ 244,400 $ 5,891 $ (13,882) $ (248,667) $ 103,074 $ 424,290 $
SPECIAL REVENUE FUNDS
93 4143
Total
Nonmajor
Special
Revenue Funds
Fire
Mitigation
Park
Improvement
Traffic
Impact Infrastructure
REVENUES
Sales taxes $ 1,885,379
Special assessments 665,443
Intergovernmental 1,064,944
Charges for services 116,922 6,913 $ 424,323 $ 1,374,595 $ Use of money and property 3,420 (79,157) 5,246 (56,920) 173 $ TOTAL REVENUES 3,543,522 120,342 429,569 1,317,675 173
EXPENDITURES
Current:
General government 129,894
Public works 363,023 344,289
Community development 3,500
Parks and recreation 3,232
Debt Service:
Principal 1,226,688
Interest and other charges 845,743
TOTAL EXPENDITURES 499,649 2,416,720
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 120,342 3,043,873 429,569 (1,099,045) 173
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,254,263) (1,833) (23,309)
TOTAL OTHER FINANCING
SOURCES AND USES (1,254,263) (1,833) (23,309)
NET CHANGE IN FUND BALANCES 1,789,610 120,342 427,736 (1,122,354) 173 Fund balances (deficits), beginning of year 872,227 13,924,634 1,254,070 4,599,505 322,728
FUND BALANCES (DEFICITS),
END OF YEAR 15,714,244 $ 992,569 $ 1,681,806 $ 3,477,151 $ 322,901 $
CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
CAPITAL PROJECTS FUNDS
94 4144
Civic
Facilities
Capital
Projects
Utility
Underground
Zero Water
Footprint CP
Total
Nonmajor
Capital
Projects Funds
Cabernet
Village Lease
Debt Service
Engie City
Debt Service
Engie Fire
Debt Service
Total Nonmajor
Debt Service
Funds
$ 132,400 154,624 $ 2,202,864 $
577 4,691 $ 1,439 (41,374)
577 137,091 156,063 2,161,490
344,289
1,226,688 27,675 $ 15,504 $ 43,179 $
845,743 98,235 $ 9,470 5,306 113,011
2,416,720 98,235 37,145 20,810 156,190
577 137,091 156,063 (255,230) (98,235) (37,145) (20,810) (156,190) 98,235 190,580 288,815
(368) (25,510) (64,597) (36,189) (100,786)
(368) (25,510) 98,235 125,983 (36,189) 188,029
577 137,091 155,695 (280,740) 88,838 (56,999) 31,839
160,196 1,238,581 322,269 8,769,576 64,597 36,189 100,786 $ 160,773 1,375,672 $ 477,964 $ 8,488,836 $ - $ 153,435 $ (20,810) $ 132,625 $
CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS
95 4145
Total Nonmajor
Governmental
Funds
REVENUES
Sales taxes $ 1,885,379
Special assessments 665,443
Intergovernmental 1,064,944
Charges for services 2,209,777
Use of money and property (120,531)
TOTAL REVENUES 5,705,012
EXPENDITURES
Current:
General government 129,894
Public works 707,312
Community development 3,500
Parks and recreation 3,232
Debt Service:
Principal 1,269,867
Interest and other charges 958,754
TOTAL EXPENDITURES 3,072,559
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,632,453
OTHER FINANCING SOURCES (USES)
Transfers in 288,815
Transfers out (1,380,559)
TOTAL OTHER FINANCING
SOURCES AND USES (1,091,744)
NET CHANGE IN FUND BALANCES 1,540,709
Fund balances (deficits), beginning of year 22,794,996
FUND BALANCES (DEFICITS),
END OF YEAR 24,335,705 $
CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
96 4146
CITY OF AMERICAN CANYON
Budget and Actual
Storm Drainage Special Revenue Fund
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Sales taxes 4,408 $ 4,408 $
Investment earnings 55,300 $ 85,241 (80,868) (166,109) $ TOTAL REVENUES 55,300 89,649 (76,460) (166,109)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 55,300 89,649 (76,460) (166,109)
OTHER FINANCING SOURCES (USES)
Transfers out (525,000) (760,000) (380,737) 379,263
TOTAL OTHER FINANCING
SOURCES AND USES (760,000) (525,000) (380,737) 379,263
NET CHANGE IN FUND BALANCE (469,700) (670,351) (457,197) 213,154 Fund balance, beginning of year 7,036,224 7,036,224 7,036,224 FUND BALANCE, END OF YEAR 6,566,524 $ 6,365,873 $ 6,579,027 $ 213,154 $ The accompanying notes are an integral part of these financial statements.
Statement of Revenues, Expenditures and Changes in Fund Balance 97 4147
CITY OF AMERICAN CANYON
Budget and Actual
Measure T- Streets and Roads
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Sales taxes 1,493,000 $ 1,172,971 $ 1,880,971 $ 708,000 $ Use of money and property 4,454 11,300 9,566 5,112
TOTAL REVENUES 1,504,300 1,177,425 1,890,537 713,112
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,504,300 1,177,425 1,890,537 713,112
OTHER FINANCING SOURCES (USES)
Transfers out (1,900,246) (1,223,700) (29,721) 1,870,525
TOTAL OTHER FINANCING
SOURCES AND USES (1,900,246) (1,223,700) (29,721) 1,870,525 NET CHANGE IN FUND BALANCE (722,821) 280,600 1,860,816 2,583,637 Fund balance, beginning of year 1,703,014 1,703,014 1,703,014 FUND BALANCE, END OF YEAR $ 980,193 1,983,614 $ 3,563,830 $ 2,583,637 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 98 4148
CITY OF AMERICAN CANYON
Budget and Actual
Gas Tax
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Intergovernmental 919,765 $ 962,607 $ 901,572 $ (61,035) $ Use of money and property 3,424 6,800 6,215 2,791
TOTAL REVENUES 926,565 966,031 907,787 (58,244)
EXPENDITURES
Current:
Public works 3,000 63,000 1,946 61,054
TOTAL EXPENDITURES 3,000 63,000 1,946 61,054
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 923,565 903,031 905,841 2,810
OTHER FINANCING SOURCES (USES)
Transfers out (1,148,700) (695,700) (310,057) 385,643
TOTAL OTHER FINANCING
SOURCES AND USES (695,700) (1,148,700) (310,057) 385,643 NET CHANGE IN FUND BALANCE (225,135) 207,331 595,784 388,453 Fund balance, beginning of year 1,263,089 1,263,089 1,263,089 FUND BALANCE, END OF YEAR 1,037,954 $ 1,470,420 $ 1,858,873 $ 388,453 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 99 4149
CITY OF AMERICAN CANYON
Budget and Actual
BEGIN Program
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Other $ 34,000 68,000 $ (34,000) $
TOTAL REVENUES 68,000 34,000 (34,000)
EXPENDITURES
Community development 96,000 96,000 96,000
TOTAL EXPENDITURES 96,000 96,000 96,000
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (28,000) (62,000) 62,000
NET CHANGE IN FUND BALANCE (62,000) (28,000) 62,000
Fund balance, beginning of year 73,273 73,273 73,273 $
FUND BALANCE, END OF YEAR $ 11,273 45,273 $ 73,273 $ 62,000 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 100
4150
CITY OF AMERICAN CANYON
Budget and Actual
State Supplemental Law Enforcement
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Intergovernmental 140,000 $ 223,346 $ 163,372 $ (59,974) $ Use of money and property 12 700 119 107
TOTAL REVENUES 140,700 223,358 163,491 (59,867)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 140,700 223,358 163,491 (59,867)
OTHER FINANCING SOURCES (USES)
Transfers out (140,000) (223,346) (163,491) 59,855
TOTAL OTHER FINANCING
SOURCES AND USES (223,346) (140,000) (163,491) 59,855
NET CHANGE IN FUND BALANCE 700 12 (12)
Fund balance, beginning of year 4,650 4,650 4,650
FUND BALANCE, END OF YEAR 5,350 $ 4,662 $ 4,650 $ (12) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 101
4151
CITY OF AMERICAN CANYON
Budget and Actual
La Vigne Landscape and Lighting
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Special assessments 612,300 $ 629,234 $ 610,302 $ (18,932) $ Use of money and property 37,371 (24,576) (61,947)
TOTAL REVENUES 612,300 666,605 585,726 (80,879)
EXPENDITURES
Current:
Public works 455,600 489,062 361,077 127,985
TOTAL EXPENDITURES 455,600 489,062 361,077 127,985
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 156,700 177,543 224,649 47,106 NET CHANGE IN FUND BALANCE 156,700 177,543 224,649 47,106 Fund balance, beginning of year 2,719,811 2,719,811 2,719,811 FUND BALANCE, END OF YEAR 2,876,511 $ 2,897,354 $ 2,944,460 $ 47,106 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 102
4152
CITY OF AMERICAN CANYON
Budget and Actual
La Vigne Open Space
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Use of money and property $ 433 1,400 $ 639 $ 206 $
TOTAL REVENUES 1,400 433 639 206
EXPENDITURES
Current:
Parks and recreation 8,000 8,000 3,232 4,768
TOTAL EXPENDITURES 8,000 8,000 3,232 4,768
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (6,600) (7,567) (2,593) 4,974 NET CHANGE IN FUND BALANCE (6,600) (7,567) (2,593) 4,974 Fund balance, beginning of year 177,618 177,618 177,618 FUND BALANCE, END OF YEAR 171,018 $ 170,051 $ 175,025 $ 4,974 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 103
4153
CITY OF AMERICAN CANYON
Budget and Actual
Newell Park Open Space
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Use of money and property $ 7,083 6,300 $ 7,370 $ 287 $ TOTAL REVENUES 6,300 7,083 7,370 287
EXPENDITURES
Current:
Parks and recreation 10,600 10,600 10,600
TOTAL EXPENDITURES 10,600 10,600 10,600
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (4,300) (3,517) 7,370 10,887 NET CHANGE IN FUND BALANCE (4,300) (3,517) 7,370 10,887 Fund balance, beginning of year 237,030 237,030 237,030 FUND BALANCE, END OF YEAR 232,730 $ 233,513 $ 244,400 $ 10,887 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 104
4154
CITY OF AMERICAN CANYON
Budget and Actual
Cannabis
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Licenses and permits 5,000 $ 5,000 $ (5,000) $
TOTAL REVENUES 5,000 5,000 (5,000)
EXPENDITURES
Current:
Community development 8,900 2,000 3,500 $ 5,400
TOTAL EXPENDITURES 2,000 8,900 3,500 5,400
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 3,000 (3,900) (3,500) 400
NET CHANGE IN FUND BALANCE (3,900) 3,000 (3,500) 400
Fund balance, beginning of year (10,382) (10,382) (10,382) FUND BALANCE, END OF YEAR $ (14,282) (7,382) $ (13,882) $ 400 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 105
4155
CITY OF AMERICAN CANYON
Budget and Actual
Community Facilities District
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Special assessments 56,700 $ 60,938 $ 55,141 $ (5,797) $ Intergovernmental 5,000,000 (5,000,000)
Use of money and property 33 33
TOTAL REVENUES 56,700 5,060,938 55,174 (5,005,764)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 56,700 5,060,938 55,174 (5,005,764)
OTHER FINANCING SOURCES (USES)
Transfers in 5,000,000
Transfers out (7,700,000) (7,801,350) (370,257) 7,329,743
TOTAL OTHER FINANCING
SOURCES AND USES (7,700,000) (2,801,350) (370,257) 7,329,743 NET CHANGE IN FUND BALANCE (2,639,062) (2,744,650) (315,083) 2,323,979 Fund balance, beginning of year 66,416 66,416 66,416
FUND BALANCE, END OF YEAR $ (2,572,646) (2,678,234) $ (248,667) $ 2,323,979 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 106
4156
CITY OF AMERICAN CANYON
Budget and Actual
General Plan Update
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 14,800 $ 454 $ 6,913 $ 6,459 $
Use of money and property 549 823 274
TOTAL REVENUES 14,800 1,003 7,736 6,733
EXPENDITURES
Current:
General government 54,800 54,800 129,894 (75,094)
TOTAL EXPENDITURES 54,800 54,800 129,894 (75,094)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (40,000) (53,797) (122,158) (68,361) NET CHANGE IN FUND BALANCE (40,000) (53,797) (122,158) (68,361) Fund balance, beginning of year 225,232 225,232 225,232 FUND BALANCE, END OF YEAR 185,232 $ 171,435 $ 103,074 $ (68,361) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 107
4157
CITY OF AMERICAN CANYON
Budget and Actual
Legal Settlement
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Use of money and property 1,030 $ 1,522 $ 492 $
TOTAL REVENUES 1,030 1,522 492
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,030 1,522 492
NET CHANGE IN FUND BALANCE 1,030 1,522 492
Fund balance, beginning of year $ 422,768 422,768 422,768 FUND BALANCE, END OF YEAR 422,768 $ 423,798 $ 424,290 $ 492 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 108
4158
CITY OF AMERICAN CANYON
Budget and Actual
Fire Mitigation
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 210,837 $ 210,837 $ 116,922 $ (93,915) $ Use of money and property 8,387 8,387 3,420 (4,967)
TOTAL REVENUES 219,224 219,224 120,342 (98,882)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 219,224 219,224 120,342 (98,882) NET CHANGE IN FUND BALANCE 219,224 219,224 120,342 (98,882) Fund balance, beginning of year 872,227 872,227 872,227 FUND BALANCE, END OF YEAR 1,091,451 $ 1,091,451 $ 992,569 $ (98,882) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 109
4159
CITY OF AMERICAN CANYON
Budget and Actual
Park Improvement
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 23,300 $ 14,759 $ 424,323 $ 409,564 $ Use of money and property 3,056 5,246 2,190
TOTAL REVENUES 23,300 17,815 429,569 411,754
EXPENDITURES
Current:
Parks and recreation 134,800 134,800 134,800
TOTAL EXPENDITURES 134,800 134,800 134,800
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (111,500) (116,985) 429,569 546,554
OTHER FINANCING SOURCES (USES)
Transfers out (160,100) (190,100) (1,833) 188,267
TOTAL OTHER FINANCING
SOURCES AND USES (190,100) (160,100) (1,833) 188,267
NET CHANGE IN FUND BALANCE (271,600) (307,085) 427,736 734,821 Fund balance, beginning of year 1,254,070 1,254,070 1,254,070 FUND BALANCE, END OF YEAR 982,470 $ 946,985 $ 1,681,806 $ 734,821 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 110
4160
CITY OF AMERICAN CANYON
Budget and Actual
Traffic Impact
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 305,100 $ 1,191,103 $ 1,374,595 $ 183,492 $ Use of money and property 40,322 (56,920) (97,242)
TOTAL REVENUES 305,100 1,231,425 1,317,675 86,250
EXPENDITURES
Current:
Public works 2,003,800 2,182,682 344,289 1,838,393
Debt service:
Principal 1, (1,226,688) 226,688
Interest and other charges 845,743 (845,743)
TOTAL EXPENDITURES 2,003,800 2,182,682 2,416,720 (234,038)
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (1,698,700) (951,257) (1,099,045) (147,788)
OTHER FINANCING SOURCES (USES)
Transfers out (71,975) (88,975) (23,309) 65,666
TOTAL OTHER FINANCING
SOURCES AND USES (88,975) (71,975) (23,309) 65,666
NET CHANGE IN FUND BALANCE (1,770,675) (1,040,232) (1,122,354) (82,122) Fund balance, beginning of year 4,599,505 4,599,505 4,599,505 FUND BALANCE, END OF YEAR 2,828,830 $ 3,559,273 $ 3,477,151 $ (82,122) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 111
4161
CITY OF AMERICAN CANYON
Budget and Actual
Infrastructure
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Use of money and property $ 107 400 $ 173 $ 66 $
TOTAL REVENUES 400 107 173 66
EXPENDITURES
Capital outlay 314,900 314,900 314,900
TOTAL EXPENDITURES 314,900 314,900 314,900
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (314,500) (314,793) 173 314,966 NET CHANGE IN FUND BALANCE (314,500) (314,793) 173 314,966 Fund balance, beginning of year 322,728 322,728 322,728 FUND BALANCE, END OF YEAR 8,228 $ 7,935 $ 322,901 $ 314,966 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 112
4162
CITY OF AMERICAN CANYON
Budget and Actual
Civic Facilities
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 188,600 $ 21,184 $ 132,400 $ 111,216 $ Use of money and property 3,018 4,691 1,673
TOTAL REVENUES 188,600 24,202 137,091 112,889
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 188,600 24,202 137,091 112,889 NET CHANGE IN FUND BALANCE 188,600 24,202 137,091 112,889 Fund balance, beginning of year 1,238,581 1,238,581 1,238,581 FUND BALANCE, END OF YEAR 1,427,181 $ 1,262,783 $ 1,375,672 $ 112,889 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 113
4163
CITY OF AMERICAN CANYON
Budget and Actual
Utility Underground
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Use of money and property 391 $ 577 $ 186 $
TOTAL REVENUES 391 577 186
OTHER FINANCING SOURCES (USES)
Transfers out (160,000) 160,000
TOTAL OTHER FINANCING
SOURCES AND USES (160,000) 160,000
NET CHANGE IN FUND BALANCE (159,609) 577 160,186
Fund balance, beginning of year $ 160,196 160,196 160,196 FUND BALANCE, END OF YEAR 160,196 $ 587 $ 160,773 $ 160,186 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 114
4164
CITY OF AMERICAN CANYON
Budget and Actual
Zero Water Footprint
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
REVENUES
Charges for services 158,700 $ 87,207 $ 154,624 $ 67,417 $ Use of money and property 786 1,439 653
TOTAL REVENUES 158,700 87,993 156,063 68,070
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 158,700 87,993 156,063 68,070
OTHER FINANCING SOURCES (USES)
Transfers out (427,500) (677,500) (368) 677,132
TOTAL OTHER FINANCING
SOURCES AND USES (677,500) (427,500) (368) 677,132
NET CHANGE IN FUND BALANCE (268,800) (589,507) 155,695 745,202 Fund balance, beginning of year 322,269 322,269 322,269 FUND BALANCE, END OF YEAR 53,469 $ (267,238) $ 477,964 $ 745,202 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 115
4165
CITY OF AMERICAN CANYON
Budget and Actual
Cabernet Village Lease Debt Service Fund
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
EXPENDITURES
Debt service:
Interest and other charges 98,400 $ 98,235 $ 98,235 $
TOTAL EXPENDITURES 98,400 98,235 98,235
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (98,400) (98,235) (98,235)
OTHER FINANCING SOURCES (USES)
Transfers in 98,400 98,235 98,235
TOTAL OTHER FINANCING
SOURCES AND USES 98,235 98,400 98,235
NET CHANGE IN FUND BALANCE
Fund balance, beginning of year
FUND BALANCE, END OF YEAR - $ - $ - $ - $
Schedule of Revenues, Expenditures and Changes in Fund Balance 116
4166
CITY OF AMERICAN CANYON
Budget and Actual
Engie City Debt Service
For the year ended June 30, 2022
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final
EXPENDITURES
Debt service:
Principal 27,675 $ 27,675 $
Interest and other charges 9,471 9,470 1 $
TOTAL EXPENDITURES 37,146 37,145 1
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (37,146) (37,145) 1
OTHER FINANCING SOURCES (USES)
Transfers in 37,146 190,580 153,434
Transfers out (64,597) (64,597)
TOTAL OTHER FINANCING
SOURCES AND USES 37,146 125,983 88,837
NET CHANGE IN FUND BALANCE 88,838 88,838
Fund balance, beginning of year $ 64,597 64,597 64,597
FUND BALANCE, END OF YEAR 64,597 $ 64,597 $ 153,435 $ 88,838 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 117
4167
(This page intentionally left blank.)
4168
INTERNAL SERVICE FUNDS
4169
(This page intentionally left blank.)
4170
INTERNAL SERVICE FUNDS
Internal service funds are established to account for goods or services provided by one department within the City to other departments or other government units on a cost reimbursement basis. The following are internal service funds:
Building Maintenance – Accounts for the maintenance of all city facilities including janitorial, security alarms, door locks and building related equipment.
Fleet – Accounts for the maintenance of services to city vehicles and equipment using city staff and contracting service out when necessary.
Information Technology – Accounts for the maintenance of services to city computer systems including the financial management system, utility billing system, and building permit software.
Legal – Accounts for legal costs incurred by the City.
4171
CITY OF AMERICAN CANYON
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
ASSETS
Current assets:
Cash and investments 324,230 $ 672,625 $ 243,196 $ 1,240,051 $ Accounts receivable, net 17,178 5,846 $ 23,024
Interest receivable 860 232 1,424 332
Prepaid expenses 252 252 28,970 29,474
Total current assets 324,814 690,915 272,398 5,846 1,293,973 Non-current assets:
Capital Assets:
Depreciable, net of accumulated depreciation 929,269 929,269 Total non-current assets 929,269 929,269
TOTAL ASSETS 324,814 1,620,184 272,398 5,846 2,223,242
DEFERRED OUTFLOW OF RESOURCES
Pension plan 26,576 30,852 5,324 62,752
OPEB plan 38,471 38,471 5,317 82,259
Total deferred outflows of resources 65,047 69,323 10,641 145,011
LIABILITIES
Current Liabilities:
Accounts payable 42,255 33,910 2,724 27,313 106,202
Accrued expenses 5,643 3,123 1,768 10,534
Accrued interest payable 87 87
Due to other funds 179,750 179,750
Compensated absences, current portion 1,255 15,708 16,963 Bonds, notes and loans payable,
current portion 77,552 77,552
Total current liabilities 46,633 132,900 4,492 207,063 391,088 Non-current liabilities:
Bonds, notes and loans payable 225,933 225,933
Net pension liability 55,061 63,968 10,931 129,960
Net OPEB liability 63,325 63,325 8,752 135,402
Total non-current liabilities 118,386 353,226 19,683 491,295 TOTAL LIABILITIES 165,019 486,126 24,175 207,063 882,383
DEFERRED INFLOW OF RESOURCES
Pension plan 53,188 61,660 10,822 125,670
OPEB plan 12,789 12,789 1,768 27,346
Total deferred inflows of resources 65,977 74,449 12,590 153,016
NET POSITION
Net investment in capital assets 625,784 625,784
Unrestricted 503,148 158,865 246,274 (201,217) 707,070
TOTAL NET POSITION (DEFICIT) $ 1,128,932 158,865 $ 246,274 $ (201,217) $ 1,332,854 $ 118
4172
CITY OF AMERICAN CANYON
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2022
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
REVENUES
Charges for services $ 889,800 593,300 $ 614,700 $ 184,800 $ 2,282,600 $ TOTAL OPERATING REVENUES 593,300 889,800 614,700 184,800 2,282,600
OPERATING EXPENSES
Employee services 146,515 121,076 34,026 301,617
Maintenance and operations 427,512 173,307 536,488 282,600 1,419,907 Depreciation and amortization 264,842 264,842
TOTAL OPERATING EXPENSES 548,588 584,664 570,514 282,600 1,986,366 OPERATING INCOME (LOSS) 44,712 305,136 44,186 (97,800) 296,234
NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenue 1,290 614 436 2,340
Other revenue 84,281 84,281
Interest expense (5,608) (5,608)
TOTAL NON-OPERATING
REVENUE (EXPENSES) 614 79,963 436 81,013
CHANGE IN NET POSITION 385,099 45,326 44,622 (97,800) 377,247 Net position (deficit), beginning of year 743,833 113,539 201,652 (103,417) 955,607
TOTAL NET POSITION (DEFICIT),
END OF YEAR 158,865 $ 1,128,932 $ 246,274 $ (201,217) $ 1,332,854 $ 119
4173
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash paid to suppliers (404,088) $ (145,140) $ (567,136) $ (290,457) $ (1,406,821) $ Cash paid to employees and related benefits (131,665) (156,015) (26,742) 105,657 (208,765) Cash received from interfund services provided 593,300 889,800 614,700 184,800 2,282,600 Other receipts 67,103 67,103
CASH PROVIDED BY OPERATING ACTIVITIES 57,547 655,748 20,822 734,117
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Capital assets purchased (75,855) (75,855)
Principal paid on long-term liabilities (43,944) (43,944) Interest paid on long-term liabilities (5,649) (5,649)
CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (125,448) (125,448)
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection of interest and investment revenue 381 443 289 1,113
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 57,928 530,743 21,111 609,782
Cash and cash equivalents, beginning of year 266,302 141,882 222,085 630,269 CASH AND CASH EQUIVALENTS, END OF YEAR 324,230 $ 672,625 $ 243,196 $ - $ 1,240,051 $
RECONCILIATION OF OPERATING INCOME (LOSS)
TO CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 44,712 $ 305,136 $ 44,186 $ (97,800) $ 296,234 $ Adjustments to reconcile operating income (loss)
to cash provided (used) by operating activities:
Depreciation and amortization 264,842 264,842
Other receipts 84,281 84,281
Changes in operating assets and liabilities:
Accounts and other receivables (5,846) (17,178) (23,024) Prepaid expenses (20) (20) (28,943) (28,983)
Accounts payable and accrued expenses 23,444 28,187 (1,705) 103,646 153,572 Compensated absences (294) (794) (1,182) (2,270)
Deferred outflows of resources - pension plan 1,133 226 (2,529) (1,170) Net pension liability (63,222) (68,693) (1,002) (132,917) Deferred inflows of resources - pension plan 49,035 57,002 10,403 116,440 Deferred outflows of resources - OPEB plans (19,234) (19,234) (3,327) (41,795) Net OPEB liability 12,752 12,752 3,520 29,024
Deferred inflows of resources - OPEB plans 9,241 9,241 1,401 19,883 CASH PROVIDED BY OPERATING ACTIVITIES 57,547 $ 655,748 $ 20,822 $ - $ 734,117 $ The accompanying notes are an integral part of these financial statements.
CITY OF AMERICAN CANYON
Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
120
4174
CUSTODIAL FUNDS
4175
(This page intentionally left blank.)
4176
CUSTODIAL FUNDS
American Canyon Road East Assessment District – These assessment bonds were issued to finance major street and road realignments and improvements of the American Canyon Road East. The bonds are secured by special assessments levied against properties within the District.
La Vigne Assessment District – These assessment bonds were issued to finance water and sewer connection fees of the La Vigne Subdivision. The bonds are secured by special assessments levied against properties within the District.
Community Facilities District No. 2018-1 – The District was formed to account for the Community Facilities District No. 2018-1 (Green Island Road Project) Special Tax Bonds, Series 2020 debt service and maintenance expenses of the Green Island Road Community Facilities District. The bonds are secured by special assessments levied against commercial properties within the District.
Tourism Improvement District – The District was formed to account for the local share of a 2% annual assessment on room rental revenue at lodging businesses through June 16, 2025 that is used for marketing programs, special event sponsorship and other programs to benefit lodging businesses paying the assessment by attracting overnight visitors. 4177
(This page intentionally left blank.)
4178
American
Canyon Road
East
Assessment
District
La Vigne
Assessment
District
Community
Facility
District No.
2018-1
Tourism
Improvement
District Total
ASSETS
Cash and investments 971,274 $ 1,098,172 $ 2,116,214 $ 97,445 $ 4,283,105 $ Restricted cash and investments 434,030 315,483 3,084,098 3,833,611 Taxes receivable 3,450 3,993 904 58,811 67,158
Interest receivable 2,154 2,073 3,944 246 8,417
TOTAL ASSETS 1,419,178 1,411,451 5,205,160 156,502 8,192,291
LIABILITIES
Accounts payable 68,487 68,487
Accrued interest payable 320,042 44,874 156,109 521,025 TOTAL LIABILITIES 44,874 320,042 156,109 68,487 589,512
NET POSITION
Restricted for individuals, organizations
and other governments 1,091,409 1,374,304 5,049,051 88,015 7,602,779 TOTAL NET POSITION $ 1,374,304 1,091,409 $ 5,049,051 $ 88,015 $ 7,602,779 $ Statement of Fiduciary Net Position
Ficudiary Funds
June 30, 2022
CITY OF AMERICAN CANYON
Custodial Funds
121
4179
American
Canyon Road
East
Assessment
District
La Vigne
Assessment
District
Community
Facility
District No.
2018-1
Tourism
Improvement
District Total
ADDITIONS
Other taxes $ 261,205 261,205 $
Special assessments 1,005,056 $ 391,334 $ 865,738 $ 2,262,128 Interest and investment earnings 3,094 3,771 7,706 461 15,032 TOTAL ADDITIONS 395,105 1,008,150 873,444 261,666 2,538,365
DEDUCTIONS
Maintenance and operations 30,645 17,187 34,184 248,394 330,410 Debt Service:
Principal 570,000 305,300 80,000 955,300
Interest and other charges 704,092 185,176 281,396 1,170,664 TOTAL DEDUCTIONS 507,663 1,304,737 395,580 248,394 2,456,374
NET INCREASE (DECREASE) IN
FIDUCIARY NET POSITION (112,558) (296,587) 477,864 13,272 81,991 Net position , beginning of year 1,387,996 1,486,862 4,571,187 74,743 7,520,788 NET POSITION, END OF YEAR $ 1,374,304 1,091,409 $ 5,049,051 $ 88,015 $ 7,602,779 $ Custodial Funds
CITY OF AMERICAN CANYON
Statement of Changes in Fiduciary Net Position
Ficudiary Funds
June 30, 2022
122
4180
123
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well being have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:
5. Own Source Tax Revenue
6. Assessed Actual Value of Taxable Property
7. Direct and Overlapping Property Tax Rates
8. Principal Property Taxpayers
9. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:
10. Ratios of Outstanding Debt by Type
11. Ratios of General Bonded Debt Outstanding
12. Computation of Direct and Overlapping Debt
13. Computation of Legal Bonded Debt Margin
14. Debt Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:
15. Demographic and Economic Statistics
16. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:
17. Full-Time Equivalent City Government Employees by Function/Program
18. Operating Indicators by Function/Program
19. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.
4181
(This page intentionally left blank.)
4182
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities:
Net investment in capital assets $ 256,298,710 $ 264,170,866 $ 262,265,389 $ 265,385,854 $ 264,189,215 $ 263,939,254 $ 260,686,136 $ 261,844,024 $ 267,596,487 $ 269,180,380 Restricted 12,513,568 12,856,505 13,031,111 13,009,697 13,908,483 24,809,820 27,372,270 29,460,378 32,192,383 34,104,181 Unrestricted 9,050,617 10,950,108 2,513,594 2,076,005 2,454,460 (266,869) 1,057,568 (1,568,807) (1,033,617) 308,949 Total governmental activities net position $ 287,977,479 277,862,895 $ 277,810,094 $ 280,471,556 $ 280,552,158 $ 288,482,205 $ 289,115,974 $ 289,735,595 $ 298,755,253 $ 303,593,510 $ Business-type activities: Net investment in capital assets $ 49,583,193 $ 52,726,436 $ 51,267,144 $ 50,662,110 $ 49,753,722 $ 49,496,148 $ 49,791,720 $ 48,038,697 $ 47,260,429 $ 45,949,422 Restricted 4,541,608 2,598,062 2,088,606 2,811,555 3,012,029 5,538,744 5,282,263 5,766,873 6,075,266 6,747,589 Unrestricted 7,190,877 8,214,087 4,224,005 6,993,828 9,422,288 11,766,749 13,269,512 15,043,433 17,697,676 18,298,635 Total business-type activities $ 61,315,678 $ 63,538,585 $ 57,579,755 $ 60,467,493 $ 62,188,039 $ 66,801,641 $ 68,343,495 $ 68,849,003 $ 71,033,371 $ 70,995,646 Primary government (City wide totals) Net investment in capital assets $ 305,881,903 $ 316,897,302 $ 313,532,533 $ 315,007,964 $ 313,942,937 $ 313,435,402 $ 310,477,856 $ 309,882,721 $ 314,856,916 $ 315,129,802 Restricted 17,055,176 15,454,567 15,119,717 15,821,252 16,920,512 30,348,564 32,654,533 35,227,251 38,267,649 40,851,770 Unrestricted 16,241,494 19,164,195 6,737,599 9,069,833 11,876,748 11,499,880 14,327,080 13,474,626 16,664,059 18,607,584 Total primary government net position 339,178,573 $ $ 351,516,064 $ 335,389,849 $ 339,899,049 $ 342,740,197 $ 355,283,846 $ 357,459,469 $ 358,584,598 $ 369,788,624 $ 374,589,156 Data Source: City of American Canyon Annual Comprehensive Financial Report. ------------------------------------------------------------------------------------------------------------- Prior Years --------------------------------------------------------------------------------------------------------- Schedule 1
City of American Canyon
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
124
4183
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses:Governmental activities:
General government $ 5,069,455 $ 4,749,018 $ 5,647,996 $ 5,295,617 $ 5,074,386 $ 5,320,539 $ 5,968,757 $ 7,679,164 $ 6,844,132 $ 6,491,043 Public safety 9,456,173 10,001,059 10,585,106 12,125,365 11,620,139 12,218,637 12,342,182 13,572,574 14,316,901 15,225,172 Public works 4,654,492 5,304,938 6,509,082 6,131,623 5,221,293 6,019,309 7,936,947 6,779,915 6,230,869 6,545,982 Community development 1,295,309 1,601,943 2,383,201 2,782,954 5,282,633 2,483,945 2,513,656 1,656,055 1,734,661 2,172,416 Parks and recreation 2,067,811 2,328,669 2,503,744 2,924,419 3,625,019 3,844,214 3,439,644 2,895,566 2,791,825 2,682,143 Storm Drain - - - - - - - 315,909 350,946 365,855
Interest on long-term debt 446,187 344,223 329,915 278,204 262,354 246,458 229,456 249,866 163,633 292,804 Total governmental activities expenses 22,989,427 24,329,850 27,959,044 29,538,182 31,085,824 30,133,102 32,430,642 33,149,049 32,432,967 33,775,415 Business-type activities:
Water $ 5,502,434 $ 6,191,545 $ 7,350,323 $ 5,362,693 $ 6,107,343 $ 6,022,713 $ 5,986,895 $ 6,997,224 $ 6,761,366 $ 8,284,697 Wastewater 3,843,559 3,555,274 4,013,398 4,992,726 4,023,167 4,588,339 4,456,463 4,416,151 5,939,890 4,958,917 Recycled Water - - - - - - - - 18,586 273,011
Total business-type activities expenses 9,746,819 9,345,993 11,363,721 10,355,419 10,130,510 10,611,052 10,443,358 11,413,375 12,719,842 13,516,625Total City government expenses $ 34,076,669 32,335,420 $ 39,322,765 $ 39,893,601 $ 41,216,334 $ 40,744,154 $ 42,874,000 $ 44,562,424 $ 45,152,809 $ 47,292,040 $ Program Revenues:Governmental activities:
Charges for services:
General government 184,060 $ 484,057 $ 534,179 $ 636,987 $ 724,671 $ 900,185 $ 599,289 $ 769,362 $ 518,482 $ 622,830 $ Public safety 1,133,505 901,808 1,510,347 1,461,036 1,296,885 1,822,591 1,463,879 1,717,683 1,880,635 1,592,796 Public works 939,685 2,203,836 2,442,299 4,891,107 1,990,415 3,326,094 725,299 2,498,096 1,860,742 916,039Community development 690,241 857,994 2,438,744 2,662,203 5,351,403 1,921,393 2,140,534 1,628,919 1,640,602 1,883,673Parks and recreation 357,267 392,717 441,946 406,163 1,034,664 1,291,887 328,236 156,108 95,597 671,863 Operating grants and contributions 275,796 363,581 476,130 1,078,889 1,333,432 762,518 1,282,102 1,088,467 1,307,790 4,748,169Capital grants and contributions 1,150,330 11,145,194 381,050 1,449,076 907,342 13,110,677 1,690,897 87,150 7,699,791 1,237,762Total governmental activities program revenues 4,730,884 16,349,187 8,224,695 12,585,461 12,638,812 23,135,345 8,230,236 7,945,785 15,003,639 11,673,132Business-type activities:
Charges for services:
Water $ 4,892,290 $ 4,982,094 $ 4,333,543 $ 5,318,577 $ 7,066,769 $ 6,876,702 $ 6,931,105 $ 7,460,837 $ 8,525,517 $ 8,412,016 Wastewater 3,733,461 3,845,647 3,914,276 3,973,672 4,434,945 4,365,272 4,427,087 4,424,515 4,722,446 4,824,937 Recycled Water - - - - - - - - 113,591 478,915
Operating grants and contributions - 4,026 10,410 711,601 580,429 254,863 215,630 207,410 438,415 240,304 Capital grants and contributions 184,707 4,084,830 242,025 2,301,541 284,400 3,851,481 200,585 468,533 1,462,249 1,826,213 Total business-type activities programs revenues 12,916,597 8,810,458 8,500,254 12,305,391 12,366,543 15,348,318 11,774,407 12,561,295 15,262,218 15,782,385 Total City government program revenues $ 29,265,784 13,541,342 $ 16,724,949 $ 24,890,852 $ 25,005,355 $ 38,483,663 $ 20,004,643 $ 20,507,080 $ 30,265,857 $ 27,455,517 $ Schedule 2
City of American Canyon
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
-------------------------------------------------------------------------------------------------------- Prior Years ------------------------------------------------------------------------------------------------------- 125
4184
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net(Expense)Revenue:
Governmental activities (18,258,543) $ (7, $ (19, 980,663) $ (16, 734,349) $ (18, 952,721) $ (6,997,757) 447,012) $ (24, $ (25, 200,406) $ (17, 203,264) $ (22, 429,328) $ 102,283) Business-type activities (535,535) 3,169,778 (3,414,199) 1,949,972 2,236,033 4,737,266 1,331,049 1,147,920 2,542,376 2,265,760Total City government (18,794,078) $ (4, $ (23, 810,885) $ (15, 148,548) $ (16, 002,749) $ (2,260,491) 210,979) $ (22, $ (24, 869,357) $ (14, 055,344) $ (19, 886,952) $ 836,523) General Revenues and Other Changes in in Net Position:Governmental activities:
Taxes:
Property taxes 10,261,072 $ 10, $ 11,480,330 599,981 $ 12, $ 12, 317,143 $ 13, 738,881 $ 15,084,618 840,597 $ 15, $ 16, 862,655 $ 17, 156,774 $ 264,929 Sales taxes 2,489,832 2,294,150 2,358,219 2,589,452 2,301,445 2,800,575 4,222,888 3,891,032 4,417,552 5,000,961Other taxes 2,632,783 2,785,624 3,002,106 3,076,637 3,076,198 3,197,726 3,179,812 2,542,370 2,313,850 3,228,510 Investment earnings (loss) 143,321 227,702 272,849 372,728 (1,047) 15,200 1,172,806 1,353,014 (75,937) (1,303,678)Miscellaneous 111,822 485,625 300,765 524,995 543,725 616,199 568,578 777,427 831,482 524,021Transfers 997,363 1,702,165 994,725 (266,772) 868,412 (15,450) 605,473 1,396,387 2,066,071 2,225,797 Total governmental activities 16,636,193 18,095,247 18,408,994 18,614,183 19,527,614 20,454,847 24,834,175 25,822,885 25,709,792 26,940,540 Business-type activities
Investment earnings (loss) and other 517,929 755,294 617,971 630,994 392,925 613,734 816,278 753,975 1,493,566 (77,688)Transfers (997,363) (1,702,165) (944,725) 266,772 (868,412) 15,450 (605,473) (1,396,387) (2,066,071) (2,225,797) Total business-type activities (479,434) (946,871) (326,754) 897,766 (475,487) 629,184 210,805 (642,412) (572,505) (2,303,485)Total City government 16,156,759 $ 17, $ 18,082,240 148,376 $ 19, $ 19, 511,949 $ 21, 052,127 $ 25,044,980 084,031 $ 25, $ 25, 180,473 $ 24, 137,287 $ 637,055 Change in net position:Governmental activities (1,622,350) $ 10, $ (1,325,355) 114,584 $ 1, $ 1, 661,462 $ 13, 080,602 $ 633,769 457,090 $ $ 8, 619,621 $ 4, 280,464 $ 838,257 Business-type activities (1,014,969) 2,222,907 (3,876,163) 2,847,738 1,760,546 5,366,450 1,541,854 505,508 1,969,871 (37,725)Total City government (2,637,319) $ 12, $ (5,201,518) 337,491 $ 4, $ 2, 509,200 $ 18, 841,148 $ 2,175,623 823,540 $ 1, $ 10, 125,129 $ 4, 250,335 $ 800,532 Data Source: City of American Canyon Annual Comprehensive Financial Report.
City of American Canyon
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
------------------------------------------------------------------------------------------------------- Prior Years ---------------------------------------------------------------------------------------------------- Schedule 2
126
4185
Committed
Fiscal Year Nonspendable Restricted Committed Assigned Unassigned Total General
Fund Nonspendable
Special
Revenue and
Debt Service Capital Projects
Special
Revenue
Special
Revenue
Capital
Projects Special Revenue Capital Projects
Total All Other
Governmental
Funds
2022 $ 861,278 442,414 $ 7,000,440 $ 1,000,000 $ 3,282,423 $ $ 12,586,555 $ - $ 16,295,902 $ 8,833,273 $ 1,267,279 $ 4,238,734 $ - $ (944,846) $ - $ 29,690,342 2021 528,861 438,510 6,387,027 1,000,000 3,850,226 12,204,624 - 13,842,076 9,251,023 1,285,478 4,776,137 - (628,984) - 28,525,730 2020 329,693 433,239 6,155,254 1,222,691 2,468,205 10,609,082 - 11,922,270 9,836,968 1,125,743 4,784,889 - (462,069) - 27,207,801 2019 350,225 426,935 6,021,464 1,222,691 2,337,950 10,359,265 - 11,801,060 7,808,693 - 5,871,283 - (1,008,280) (213,953) 24,258,803 2018 563,295 115,106 1,903,925 1,222,500 4,752,357 8,557,183 688 3,420,345 7,813,712 - 5,974,310 - (1,811,260) (260,895) 15,136,900 2017 687,237 141,751 6,117,954 1,201,941 215,304 8,364,187 688 2,456,754 4,869,873 1,347,000 3,848,526 - (594,550) (1,277,506) 10,650,785 2016 909,462 89,269 5,859,953 1,491,026 1,548,892 9,898,602 688 2,393,720 5,096,773 1,347,000 3,459,116 552,760 (820,055) (113,358) 11,916,644 2015 2,644,665 75,883 1,476,370 777,418 6,107,104 11,081,440 589,041 2,390,604 5,876,113 1,347,000 2,815,904 - (1,272,732) (1,335,082) 10,410,848 2014 2,467,641 69,535 1,461,807 872,295 5,970,052 10,841,330 553,448 2,235,092 6,088,807 1,347,000 2,411,746 - (1,143,857) (1,422,675) 10,069,561 2013 3,112,160 61,228 1,494,771 1,026,588 4,899,474 10,594,221 552,760 1,587,471 5,944,172 1,347,000 1,011,763 - 1,612,299 (1,338,207) 10,717,258 Note: GASB Statement Number 54 was implemented in the 2011 fiscal year which changed the terminology used for fund balance reporting.
Data Source: City of American Canyon Annual Comprehensive Financial Report.
Restricted Assigned Unassigned
--------------------- Prior Years ----------------------- --
Schedule 3
City of American Canyon
Fund Balances, Governmental Funds
Last Ten Fiscal Years
General Fund All Other Governmental Funds
127
4186
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues:
Taxes 15,313 $ 15,992 $ 17,896 $ 22,553 $ 19,242 $ 20,381 $ 30,520 $ 22,705 $ 22,656 $ 25,774 $ Special assessments 447 455 471 488 550 583 581 638 668 665 Fines and forfeits 153 120 112 95 98 91 151 65 73 101
Licenses and permits 337 337 446 455 460 763 428 619 585 762 Intergovernmental 1,079 1,280 874 3,049 1,689 2,441 3,061 1,834 4,848 5,135 Charges for services 1,156 2,025 4,496 3,572 4,913 8,669 3,197 4,672 3,848 4,656 Other revenues 998 1,179 1,022 1,275 851 1,151 2,563 2,353 1,439 ( 281) Total revenues 19,483 21,389 25,317 31,487 27,803 34,079 40,501 32,886 34,117 36,812 Expenditures:
General government 3,896 4,066 5,064 5,111 5,237 5,084 5,645 5,648 5,312 6,773 Public safety 9,377 9,554 9,734 10,731 11,063 12,043 12,362 12,930 13,800 14,802 Comm. Dev. and Public Works 4,557 5,496 6,597 5,453 7,619 5,446 6,482 6,753 4,432 6,016 Parks and Recreation 1,073 1,192 2,202 2,665 3,615 3,445 3,215 1,847 2,809 2,720 Principal 502 537 560 583 606 628 583 538 4,598 1,270
Interest 460 394 373 314 291 268 243 222 157 959
Debt issuance costs - - - - - - - - 158 -
Capital outlay 2,445 2,277 1,200 5,260 3,040 2,099 1,670 3,458 7,022 4,961 Total expenditures 22,310 23,516 25,730 30,117 31,471 29,013 30,200 31,396 38,288 37,501 Excess of revenues
over(under)
expenditures (2,827) (2, ( 127) 1,370 413) (3, 5,066 668) 10,301 1,490 (4, ( 171) 689) Other Financing
Sources(Uses)
Proceeds from borrowing 2,222 - - - - - - - 5,399 -
Payments to escrow agent (2,465) - - - - - - - - -
Transfers in 4,065 5,447 3,742 9,050 5,403 4,289 5,207 5,973 9,873 7,441 Transfers out (3,068) (3, (2, 745) (10, 747) (4, 097) (4, 535) (4, 676) (4, 601) (7, 577) (5, 875) 215) Insurance Proceeds - - - - - - - - 12 -
Sale of Assets - 24 - - - - 18 - 10 10
Total other financing
Sources(Uses) 754 1,726 995 (1, 868 047) ( 623 387) 1,396 7,419 2,236 Net change in fund
balances (2,073) $ (401) $ 581 $ 323 $ (2, $ 4,679 800) $ 10,924 $ 2,886 $ 3,248 $ 1,547 $ Debt service as a
percentage of noncapital
expenditures 4.8% 4.4% 3.8% 3.6% 3.2% 3.3% 2.9% 0.0% 15.2% 6.9% Data Source: City of American Canyon Annual Comprehensive Financial Report. -------------------------------------------------------------- Prior Years -------------------------------------------------------- (Modified accrual basis of accounting)
Schedule 4
City of American Canyon
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(In Rounded Thousands of Dollars)
128
4187
Fiscal
Year Property Tax
Transient
Occupancy
Tax Franchise Tax
Cardroom
Admission Tax
Fire
Assessment
Fee Total
2012-2013 10,240 $ 1,064 $ 577 $ 147 $ 593 $ 12,621 $
2013-2014 10,569 1,249 618 261 588 13,285
2014-2015 11,353 1,406 673 232 597 14,261
2015-2016 12,348 1,509 722 168 607 15,354
2016-2017 12,705 1,546 727 166 600 15,744
2017-2018 13,807 1,593 738 201 614 16,953
2018-2019 14,951 1,549 751 226 639 18,116
2019-2020 15,781 1,141 785 175 659 18,541
2020-2021 16,096 885 815 103 689 18,588
2021-2022 17,288 1,644 840 322 697 20,791
Data Source: City of American Canyon Annual Comprehensive Financial Report and General Ledger. ------------------------- Prior Years ----------------------- (Modified accrual basis of accounting)
Schedule 5
City of American Canyon
Own Source Tax Revenues by Source
Last Ten Fiscal Years
(In Rounded Thousands of Dollars)
129
4188
Fiscal
Year Residential Commercial Industrial Vacant Land SBE Nonunitary Possessory Int. Unsecured Other Total Total Direct Rate 2012-2013 1,335,380 $ $ 136,921 $ 66,285 375,497 $ 1,454 $ 16,147 $ 193,882 $ 3,517 $ 2,129,083 $ 0.28%2013-2014 1,398,763 144,912 63,139 404,835 42 16,449 201,968 3,588 2,233,696 0.28%2014-2015 1,541,948 142,808 65,143 406,322 42 16,912 206,535 4,358 2,384,068 0.28%2015-2016 1,724,766 143,476 59,632 413,039 42 17,265 196,671 14,027 2,568,918 0.28%2016-2017 1,806,564 162,450 72,072 462,896 42 18,507 209,045 14,217 2,745,793 0.28%2017-2018 1,952,312 179,425 61,512 518,566 42 18,909 176,326 4,457 2,911,549 0.27%2018-2019 2,072,127 191,160 62,889 548,337 269 19,337 209,319 4,492 3,107,929 0.27%2019-2020 2,158,339 196,080 66,973 624,597 269 20,075 252,546 4,584 3,323,463 0.27%2020-2021 2,219,659 207,421 76,869 654,200 269 21,107 229,837 83 3,409,449 0.27% 2021-2022 2,306,148 214,950 45,555 752,961 27,769 21,211 230,824 87 3,599,505 0.27% Note: Exempt values are not included in Total.In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At thatpoint, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. 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.Data Source: Napa County Assessor 2012/13 - 2021/22 Combined Tax RollsThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon. ------------------- Prior Years --------------------------- ---
Schedule 6
City of American Canyon
Assessed Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
130
4189
Agency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Basic Levy1 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % Napa College 0.025 0.027 0.026 0.026 0.025 0.024 0.024 0.021 0.019 0.018Napa Valley Unified School District 0.065 0.072 0.069 0.063 0.114 0.102 0.098 0.090 0.090 0.088Total Direct & Overlapping2 Tax Rates 0.090 0.099 0.095 0.089 0.140 0.126 0.122 0.110 0.111 0.106 City's Share of 1% Levy per Prop 133 0.296 0.296 0.296 0.296 0.296 0.296 0.292 0.292 0.292 0.292 Total Direct Rate4 0.277 0.276 0.276 0.276 0.276 0.274 0.275 0.271 0.271 0.267Notes:
1In 1978, California voters passed Proposition 13 which set 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 voterapproved bonds. 2Overlapping 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. 3City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
4Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.
Data Source: Napa County Assessor 2012/13 - 2021/22 Tax Rate TableThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon. ------------------------------------------------------------------------- Prior Years ----------------------------------------------------------------------- Schedule 7
City of American Canyon
Direct and Overlapping Property Tax Rates
For The Last Ten Fiscal Years
(Rates per $100 of assessed value)
131
4190
Parcels Revenue
% of
Revenue Parcels Revenue
% of
Revenue Value
% of
Revenue
Coca Cola Company 1 208,680 $ 24.51% 208,680 $ 1.44%
Unsecured American Canyon Gen Fund
SDG Hanna Court 411 LLC 2 156,250 $ 1.14% 156,250 1.08% Industrial American Canyon Gen Fund
SRI Napa LLC ET AL 1 153,624 1.12% 153,624 1.06%
Residential American Canyon Gen Fund
RAR2 Napa Logistics Park LLC 1 129,435 0.95% 129,435 0.89% Industrial American Canyon Gen Fund
Biagi and Associates LLC 1 123,594 0.90% 1 2,926 0.34% 126,520 0.87% Industrial American Canyon Gen Fund
Mezzetta 125 LP 1 117,272 0.86% 117,272 0.81%
Industrial American Canyon Gen Fund
Sutter Home Winery 2 106,551 0.78% 106,551 0.73%
Industrial American Canyon Gen Fund
Barry Callebaut USA LLC 1 104,736 12.30% 104,736 0.72%
Unsecured American Canyon Gen Fund
Napa Junction Partners 1 95,771 0.70% 95,771 0.66%
Residential American Canyon Gen Fund
SDG Lombard LLC 1 92,898 0.68% 92,898 0.64%
Industrial American Canyon Gen Fund
Top Ten Totals 10 975,395 7.13% 3 316,342 37.15% 1,291,737 8.90% City Totals 13,681,871 $ 851,402 $ 14,533,273 $
*Revenue includes Outer TRAs
Note: The 'Revenue' line for each owner is the estimated total revenue for that owner. Although these estimated calculations are performed on a parcel level, county auditor/controllers' offices neither calculate nor apportion revenues at a parcel level.Data Source: Napa County Assessor 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax RollThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon.
Unsecured Combined
Owner
Schedule 8
City of American Canyon
2021/22 Top Ten Property Taxpayers
Primary Use & Primary
Agency
Secured
Based on Property Tax Revenue
132
4191
Parcels Revenue
% of
Revenue Parcels Revenue
% of
Revenue Value
% of
Revenue
1) Coca Cola Company 1 62,369 $ 0.77% 2 220,337 $ 28.81% 282,706 $ 3.20% Unsecured American Canyon Gen Fund
2) SDG Hanna Court 411 LLC 2 134,069 1.66% 134,069 1.52% Industrial American Canyon Gen Fund
3) Sutter Home Winery Inc 2 98,835 1.23% 98,835 1.12%
Industrial American Canyon Gen Fund
4) 5500 Eucalyptus Dr Apts 1 87,584 1.09% 87,584 0.99%
Industrial American Canyon Gen Fund
5) Biagi and Associates 1 86,558 1.07% 86,558 0.98%
Residential American Canyon Gen Fund
6) Walmart Real Estate Business Trus 1 59,916 0.74% 1 5,255 0.69% 65,171 0.74% Commercial American Canyon Gen Fund
7) Barry Callebaut USA LLC 1 63,344 8.28% 63,344 0.72%
Industrial American Canyon Gen Fund
8) 125 Mezzetta Court 1 61,587 0.76% 61,587 0.70%
Industrial American Canyon Gen Fund
9) Broadstone HC California LLC 2 53,695 0.67% 53,695 0.61% Industrial American Canyon Gen Fund
10) Butterfly Effect Hotels LLC 2 46,627 0.58% 46,627 0.53% Commercial American Canyon Gen Fund
Top Ten Totals 13 691,241 8.58% 4 288,936 37.78% 980,177 11.11% City Totals 8,059,970 $ 764,754 $ 8,824,724 $
*Revenue includes Outer TRAs
Note: The 'Revenue' line for each owner is the estimated total revenue for that owner. Although these estimated calculations are performed on a parcel level, county auditor/controllers' offices neither calculate nor apportion revenues at a parcel level.Data Source: Napa County Assessor 2012/13 Combined Tax Rolls and the SBE Non Unitary Tax RollThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon.
Schedule 8
City of American Canyon
2012/13 Top Ten Property Taxpayers
Based on Property Tax Revenue
Owner
Secured Unsecured Combined
Primary Use & Primary
Agency
133
4192
Fiscal Year Taxes Levied Percentage
Ended For The of
June 30 Fiscal Year Amount Levy
2013 10,261,072 $ 10,261,072 $ 100%
2014 10,599,981 10,599,981 100%
2015 12,317,143 12,317,143 100%
2016 12,738,881 12,317,143 100%
2017 13,840,597 12,738,881 100%
2018 15,084,618 13,840,597 100%
2019 15,862,655 15,084,618 100%
2020 15,862,655 15,862,655 100%
2021 16,156,774 16,156,774 100%
2022 17,319,935 17,319,935 100%
Note: Source is City of American Canyon Tax Collection records and Napa County Assessor records. Property taxes are levied and collected pursuant to an arrangement commonly referred to as the Teeter Plan. Under the Teeter Plan, the County allocates and remits to the City the full amount of each years tax levy, and the County then retains any delinquencies as collected by the County.
------------------------- Prior Years ------------------------ -------
of The Levy
Schedule 9
City of American Canyon
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected Within The Fiscal Year
134
4193
Total City
Business-type Activities Debt as a Total
General Lease Financed Financed State of Total Percentage City Debt Fiscal Obligation Revenue Bank Purchase Purchase California and City of Personal Per Year Bonds Bonds Financing Obligations Leases Obligations Other Loans Debt Income Capita 2013 2,017 $ 6,615 $ 8,773 $ 17,405 $ 3.23% 870 $
2014 1,792 6,303 7,331 15,426 2.74% 772
2015 1,559 6,263 827 $ 6,214 14,863 2.60% 731
2016 1,318 5,892 2,408 5,505 15,123 3.67% 735
2017 1,069 5,506 1,975 4,827 13,377 2.07% 637
2018 813 5,104 1,532 4,131 11,580 1.86% 552
2019 551 4,752 1,076 3,416 9,795 1.49% 475
2020 278 4,455 609 2,682 8,024 1.17% 385
2021 845 4,672 245 $ 4,769 1,928 12,459 1.70% 599
2022 802 4,638 234 4,233 1,155 11,062 1.54% 511
Note: It was determined in 2019 that the City was inadvertently referring to a 2012 bank financing agreement as a Lease Revenue Bond. The name was changed and debt service payments were moved to a separate column accordingly.
Note: GASB 87 was implemented during 2022 requiring operating leases to be recognized. GASB 87 was implemented as of 2021.
Data Source: City of American Canyon Annual Comprehensive Financial Report. -------------------- Prior Years ------------------------- Schedule 10
City of American Canyon
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
(Dollars in Thousands except for Per Capita)
Governmental Activities
135
4194
Percentage of
General Lease Actual Taxable
Fiscal Obligation Revenue Value of Per
Year Bonds Bonds Total Property Capita
2012 - 2, $ 2, 465,000 $ 0.12% 124 465,000 $
2013 - - - 0.00% -
2014 - - - 0.00% -
2015 - - - 0.00% -
2016 - - - 0.00% -
2017 - - - 0.00% -
2018 - - - 0.00% -
2019 - - - 0.00% -
2020 - - - 0.00% -
2021 - - - 0.00% -
2022 - - - 0.00% -
Note: It was determined in 2019 that the City was inadvertently referring to a 2012 bank financing agreement as a Lease Revenue Bond. Amounts starting in 2013 were for this financing and were removed above.
Note: Debt service on the lease revenue bonds is financed by the use of general governmental financial resources available in the general fund and special revenue funds of the City.
Data Source: City of American Canyon Annual Comprehensive Financial Report. --------------------------- Prior Years -------------------------- Schedule 11
City of American Canyon
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
136
4195
2021-22 Assessed Valuation: $3,676,532,577
Total Debt City's Share of
6/30/2022 % Applicable (1) Debt 6/30/2022
Napa Joint Community College District 75,379,006 $ 7.828% 5,900,669 $ Napa Valley Unified School District 476,094,855 11.781% 56,088,735 American Canyon Green Island Road Community Facilities District 5,085,000 100.000% 5,085,000 City of American Canyon 1915 Act Bonds 13,573,900 100.000% 13,753,900 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 80,828,304
Napa County Certificates of Participation $ 6,800,000 7.896% $ 536,928 Napa County Board of Education Certificate of Participation 11,625,000 7.896% 917,910 Napa Valley Unified School District Certificates of Participation 2,220,000 11.781% 261,538 City of American Canyon Facilities Loan and Lease Financing 5,674,550 100.000% 5,674,550 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 7,390,926 $ TOTAL DIRECT DEBT $ 5,674,550
TOTAL OVERLAPPING DEBT 82,544,680
COMBINED TOTAL DEBT $ (2) 88,219,230
Ratios to Assessed Valuation:
Total Direct Debt ($5,674,550) 0.15%
Total Overlapping Tax and Assessment Debt. 2.25%
Combined Total Debt 2.40%
Data Source: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
OVERLAPPING TAX AND ASSESSMENT DEBT:
Schedule 12
City of American Canyon
Computation of Direct and Overlapping Debt
As of June 30, 2022
137
4196
General Net
Fiscal Assessed Bonded Legal Debt Debt
Year Value Debt Limit Debt Margin Margin
2013 $ 2,129,083,162 $ 79,840,619 - 79,840,619 $ 0.00%
2014 2,233,695,851 83,763,594 - 83,763,594 0.00%
2015 2,384,068,041 89,402,552 - 89,402,552 0.00%
2016 2,568,918,377 96,334,439 - 96,334,439 0.00%
2017 2,745,793,523 102,967,257 - 102,967,257 0.00%
2018 2,911,549,010 109,183,088 - 109,183,088 0.00%
-
2019 3,107,928,907 116,547,334 - 116,547,334 0.00%
-
2020 3,323,463,102 124,629,866 - 124,629,866 0.00%
2021 3,482,439,834 130,591,494 - 130,591,494 0.00%
2022 3,676,532,577 137,869,972 - 137,869,972 0.00%
Notes:
(1) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted when assessed valuations were based on 25% of full market value. This has since changed to 100% of full market value. Thus, the limit shown is 3.75% (one-fourth the limit of 15%).
Data Source: City of American Canyon Annual Comprehensive Financial Report. ---------------------------- Prior Years ----------------- Schedule 13
City of American Canyon
Computation of Legal Debt Margin
Last Ten Fiscal Years
138
4197
Special Capital
Fiscal Assessment Impact
Year Collections Fees Principal Interest Coverage
2013 $ 1,744,914 - $ 575,000 $ 1,078,666 1.06
2014 1,687,609 - 605,000 1,023,243 1.04
2015 1,701,083 - 680,600 978,177 1.03
2016 1,533,089 - 672,600 950,079 0.94
2017 1,512,432 - 702,800 921,059 0.93
2018 1,505,161 - 728,000 890,452 0.93
2019 1,508,336 - 767,900 1,076,068 0.82
2020 1,514,977 - 812,500 966,000 0.85
2021 2,358,403 - 826,600 826,192 1.43
2022 2,262,128 - 955,300 712,882 1.36
Water Capital Less Net
Service Impact Operating Available
Revenues Fees Expenses Revenue Principal Interest Coverage 2013 $ 5,147,040 $ 179,580 $ 3,885,541 $ 1,441,079 $ 56,357 25,860$ 17.53 2014 5,296,807 2,454,741 4,368,969 3,382,579 57,766 24,470 41.13 2015 4,612,345 171,882 5,825,479 (1,041,252) 59,210 23,008 (12.66) 2016 5,895,551 1,410,622 3,785,935 3,520,238 60,646 21,538 42.83 2017 7,266,136 149,456 4,508,226 2,907,366 62,208 19,945 35.39 2018 7,134,533 2,270,458 4,360,122 5,044,869 63,762 18,399 61.40 2019 7,357,422 138,604 4,365,061 3,130,965 65,357 16,785 38.12 2020 7,852,151 332,487 5,274,448 2,910,190 66,992 15,150 35.43 2021 10,024,822 1,035,539 5,118,753 5,941,608 68,666 14,287 71.63 2022 8,431,611 1,252,878 7,023,852 2,660,637 70,382 11,697 32.42 Wastewater Capital Less Net
Service Impact Operating Available
Revenues Fees Expenses Revenue Principal Interest Coverage 2013 $ 3,996,640 $ 5,127 $ 2,422,454 $ 1,579,313 $ 553,426 $ 173,513 2.17 2014 4,286,228 1,630,089 2,480,480 3,435,837 568,368 158,167 4.73 2015 4,150,773 70,143 2,584,479 1,636,437 583,714 142,407 2.25 2016 4,234,717 890,919 2,161,955 2,963,681 599,475 126,221 4.08 2017 4,709,025 134,944 2,347,478 2,496,491 615,660 109,598 3.44 2018 4,713,142 1,581,023 2,901,642 3,392,523 632,283 92,526 4.68 2019 4,835,296 61,981 2,859,602 2,037,675 649,355 74,994 2.81 2020 4,797,654 136,046 2,646,209 2,287,491 666,888 56,988 3.16 2021 4,941,788 373,210 3,086,833 2,228,165 684,893 56,989 3.00 2022 4,963,857 573,335 3,363,113 2,174,079 703,385 38,496 2.93 Note: Water and wastewater revenues include operating revenues, interest revenues, and capital impact fees. Operating expenses exclude depreciation and amortization. Payments are cash basis.
Data Source: City of American Canyon Annual Comprehensive Financial Report. -------- Prior Years -------
Schedule 14
City of American Canyon
Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service
Special Assessment Bonds - Custodial Funds
-------- Prior Years -------
Debt Service
State of California Water Loan
State of California Wastewater Construction Loan
Debt Service
-------- Prior Years -------
139
4198
Personal
Income Median
Fiscal (thousands Household Unemployment
Year Population of dollars) Income Rate
2013 20,001 539,507 $ 83,581 $ 8.20%
2014 19,989 563,790 83,609 6.50%
2015 20,374 571,557 81,955 5.40%
2016 20,338 411,763 75,997 5.40%
2017 20,570 646,021 83,673 5.00%
2018 20,990 622,133 83,673 4.70%
2019 20,629 657,387 91,705 4.20%
2020 20,837 688,744 101,792 3.70%
2021 20,802 732,403 6.40% 101,792
2022 21,658 719,271 4.00% 117,846
Source: HDL, Coren & Cone
Source: 2020-21 and prior, previously published CAFR
(1) Population Projections are provided by the California Department of Finance Projections. (2) Income Data is provided by the United States Census Data and is adjusted for inflation. (3) Unemployment rate is provided by the EDD's Bureau of Labor Statistics Department.
Schedule 15
City of American Canyon
Demographic and Economic Statistics
For The Last ten Fiscal Years
-------------------------- Prior Years ----------------------- -
140
4199
Percentage Percentage
Number of Total City Number of Total City
Employer Rank Employees Employment Rank Employees Employment Amazon 1 481 5.01%
GL Mezetta 2 350 3.65% 2 300 5.77%
Walmart Supercenter 3 320 3.33% 1 362 6.96%
A Bright Future 4 170 1.77%
Ikea Distribution Services, Inc. 5 162 1.69%
Barry Callebaut 6 150 1.56%
Safeway 7 130 1.35% 5 99 1.90%
Napa Valley Casino 8 104 1.08%
Western Wine Services 9 103 1.07% 7 63 1.21%
Vin Lux LLC 10 82 0.85%
Coca-Cola AmCan Beverages 3 155 2.98%
City of American Canyon 6 75 1.44%
American Canyon Middle School 8 60 1.15%
Sutter Home Winery 4 123 2.37%
Vineyard Brands Inc 9 55 1.06%
Donaldson Way Elementary School 10 50 0.96%
Data Source: Business License
2013
Schedule 16
City of American Canyon
Principal Employers (Ten Largest)
2022
Calendar Year 2022 vs Calendar Year 2013
141
4200
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Administration
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Manager 2.15 2.15 2.55 2.55 3.50 2.50 2.50 3.00 3.00 3.00 City Clerk 1.40 1.40 1.65 1.65 2.00 2.00 2.00 2.00 2.00 2.00 Neighborhood Programs 1.00 1.00
Communications 1.00 1.00
Human Resources 1.50 - - - 2.20 2.00 2.00 1.00 2.00 2.00 Finance
Human Resources - 1.50 2.20 2.20 - - - 0.00 0.00 0.00
Finance 4.60 4.60 4.30 4.80 4.80 4.50 4.10 4.10 4.10 4.10 Information Systems 0.20 0.20 - - - - - 0.00 0.00 0.00
Utility Billing 3.20 3.20 3.40 3.40 3.40 3.40 3.80 3.80 3.80 3.80 Public safety:
Police 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.00 2.00 Non Departmental 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.00 1.00 Community Development:
Planning 1.60 1.60 3.25 3.25 3.25 4.25 2.75 2.75 2.45 2.40 Building and Safety 3.25 3.25 3.25 4.25 4.25 3.75 3.65 3.65 2.95 3.00 Economic Development 0.45 0.45 0.54 0.54 - - - 0.00 0.00 0.00 Housing Services 0.10 0.10 - - - - 0.10 0.10 0.10 0.10
City Engineer 1.30 1.30 - - - - - 0.00 0.00 0.00
Affordable Housing 0.25 0.25 0.10 0.10 - - - - - -
Parks and Recreation
Park Maintenance 5.20 5.35 5.40 5.40 6.50 5.40 5.40 - - - Parks & Recreation Admin - - 2.20 2.70 3.70 3.30 3.30 3.10 3.10 2.00 Recreation Programs 2.75 2.80 1.80 2.80 2.80 3.10 3.10 4.30 4.30 4.00 Aquatics Programs 2.30 2.30 1.60 1.60 1.50 1.90 1.90 1.90 1.90 1.60 Neighborhood Programs - - - - - 1.00 - - - -
Facility Rentals - - - - - 0.30 0.30 0.30 0.30 0.00
Maintenance and Utilities
Maintenance & Utilities Admin 3.00 3.00
Streets Maintenance 2.70 2.70
Maintenance & Utilities Storm Drain 2.70 3.00
Parks Maintenance 5.40 5.40
Public Works:
Administration 3.90 3.90 3.50 3.50 3.50 3.50 3.50 3.00 2.00 2.00 Capital Projects 1.60 1.60 3.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 Street Maintenance 3.45 3.45 2.90 3.30 3.30 4.00 3.95 3.95 0.00 0.00 Storm Drain 1.95 1.95 2.00 2.60 1.60 1.90 2.35 2.35 0.70 0.70 Parks Maintenance - - - - - - - 5.40
Fleet Operations 1.10 1.10 - - - - - - -
City Engineer - - 1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.50 Water:
Treatment and Distribution 9.05 9.05 9.08 10.08 11.25 11.55 11.25 11.75 11.25 11.25 Wastewater:
Collection and Treatment 12.00 12.00 12.23 9.73 9.40 11.10 11.25 10.75 9.25 9.25 Storm Water Quality 0.45 0.45 - - - - - 0.00 0.00 0.00
Solid Waste 0.35 0.35 0.35 3.35 3.35 3.35 3.10 3.10 2.30 3.00 Internal Service:
Building Maintenance - - 1.00 1.00 1.00 1.00 1.05 1.05 1.05 1.05 Fleet Operations - - 1.10 1.10 1.10 1.10 1.05 1.05 1.05 1.05 Information Systems - - 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Totals 73.10 73.30 77.50 84.00 86.50 89.00 88.00 88.00 85.00 84.00 Data Source: Human Resources Department
Schedule 17
City of American Canyon
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
--------------------------------------- Prior Years --------------------------------------- 142
4201
--------------------------------------------------------- Prior Years ----------------------------------------------------- 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police:
Physical arrests 842 790 471 569 493 282 460 515 504 517 Traffic violations 1,639 1,336 971 886 1,189 1,204 635 601 696 1,776 Fire:
Emergency Responses 1,437 1,449 1,627 1,615 1,802 1,744 1,709 1,725 1,764 1,775 Structure Fires 6 6 17 20 20 21 19 71 80 40
Fire Loss (Thousand $) - - - - - - - - - -
Fire Engines 6 6 6 6 6 8 8 8 8 8
Inspections 264 199 229 216 393 382 325 292 179 154
Construction Inspection 108 50 44 78 100 97 171 107 122 81 Planning:
Building Permits Issued 299 360 520 524 496 511 428 571 598 534 Public works:
Miles streets resurfaced - - 1.75 0.15 7.00 0.69 1.00 1.14 0.35 3.25 Parks:
Community events held 35 37 41 46 41 40 38 14 12 27
Swimming pool admissions 16,261 47,720 48,222 49,142 49,302 63,110 46,594 15,277 14,250 21,756 Water:
Number of new services 633 493 402 418 449 427 374 324 292 332 Daily average water
production in MGD 3.10 3.15 2.87 2.49 2.31 2.38 2.40 2.12 2.57 2.50 Daily average water
consumption in MGD 2.94 2.89 2.39 2.08 2.02 2.19 2.08 1.64 2.19 2.15 Data Source: Various departments within the City of American Canyon Schedule 18
City of American Canyon
Operating Indicators by Function/Program
Last Ten Fiscal Years
143
4202
------------------------------------------------------- Prior Years ---------------------------------------------------- Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 13 15 19 17 17 18 18 18 18 18
Fire:
Stations 2 2 2 2 2 2 2 2 2 2
Engines 8 8 8 8 8 9 8 8 8 8
Public works:
Miles of streets 38.1 38.1 38.1 38.1 38.1 38.1 38.1 52.3 112. 112. 0 5 Streetlights 1,233 1,233 1,233 1,233 1,233 1,233 1,233 1,381 1,397 1,397 Traffic signals 4 4 4 4 4 4 4 6 6 6
Parks and recreation:
Community centers 3 3 3 3 3 3 3 3 3 3
Parks 22 22 22 22 22 22 22 22 22 22
Park Acreage 79 79 79 79 79 79 79 79 79 79
Water:
Miles of mains added - - - - - - - - - 0.5
Number of services billed 5,565 5,593 5,594 5,621 5,654 5,646 5,595 5,693 5,724 5,734 Maximum plant capacity
in millions gallons 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 Storage capacity in
in millions gallons 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 Wastewater:
Miles of sewers added - - - - - - -
Number of services billed 4,971 4,983 5,004 5,016 5,012 4,999 5,050 5,006 5,009 5,022 Maximum plant capacity
in million gallons 5 5 5 5 5 5 5 5 5 5
Recycled Water:
Miles of pipelines added - - - 0.4 - - - 0.5
Number of services billed 13 15 20 30 46 43 30 48 62 46 Storage capacity
in million gallons 1 1 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Data Source: Various departments within the City of American Canyon Schedule 19
City of American Canyon
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
144
4203
(This page intentionally left blank.)
4204
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
MANAGEMENT LETTER
To the City Council and Management
City of American Canyon
American Canyon, California
In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon (the City) as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified a deficiency in internal control that we consider to be a significant deficiency.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
We consider the following deficiency to be a significant deficiency.
Closing Entries
We re-imported the general ledger and then had an additional 34 adjustments and closing entries to report the City’s activity in accordance with Generally Accepted Accounting Principles. The final closing entries were not provided until two weeks prior to the board meeting package due date for the meeting in which the ACFR was being presented, which increases the likelihood of an error being made that was not identified during the audit. We recommend the City review the adjustment list provided during the audit and consider which entries can be posted prior to the start of the audit in the future to increase audit efficiency.
The following additional items have been presented for the City’s consideration:
4205
To the City Council and Management
City of American Canyon