American Canyon City Council
January 16, 2024

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION:

Cash and investments 11,103,665 $ 5,264,859 $ 487,652 $ 16,856,176 $ 1,292,663 $ Restricted cash and investments 6,333,174 546,284 6,879,458 CASH AND CASH EQUIVALENTS 17,436,839 $ 5,811,143 $ 487,652 $ 23,735,634 $ 1,292,663 $

RECONCILIATION OF OPERATING INCOME (LOSS)
TO CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) 120,729 $ (366,686) $ (198,349) $ (444,306) $ (137,504) $ Adjustments to reconcile operating income (loss)
to cash provided (used) by operating activities:

Depreciation and amortization 1,274,314 1,746,613 222,255 3,243,182 425,012 Operating transfers in 5,157
Changes in operating assets and liabilities:

Accounts receivable, net 209,813 75,751 3,646 289,210 11,504 Prepaid expenses (1,248) (1,092) (96) (2,436) (17,243)
Accounts payable and accrued expenses (486,712) (54,216) (27,985) (568,913) 143,554 Deposits 3,209 3,209
Compensated absences (5,330) (22,060) (27,390) 2,515
Changes in pension and OPEB liabilities and related deferred outflows and inflows of resources:

Deferred outflows of resources - pension plan (376,673) (465,097) (4,238) (846,008) (76,599) Net pension liability 814,894 1,006,189 9,012 1,830,095 166,388 Deferred inflows of resources - pension plan (400,867) (493,804) 677 (893,994) (103,419) Deferred outflows of resources - OPEB plans 178,104 (175,497) (7,468) (4,861) (16,399) Net OPEB liability 410,603 (240,846) 13,755 183,512 46,305 Deferred inflows of resources - OPEB plans (134,582) (117,016) 376 (251,222) (22,372) CASH PROVIDED BY OPERATING ACTIVITIES $ 1,543,688 954,805 $ 11,585 $ 2,510,078 $ 426,899 $

SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
Change in capital asset purchases payable (153,608) $ (256,172) $ (409,780) $ Transfer of capital assets to (from) other opinion units $ (17,130) 228,994 $ 211,864 $ 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, 2023
Enterprise Funds
28 330
Total
Custodial
Funds
ASSETS
Cash and investments $ 4,937,174
Restricted cash and investments 3,844,498
Taxes receivable 61,111
Interest receivable 40,837
TOTAL ASSETS 8,883,620

LIABILITIES
Accounts payable 46,561
Accrued interest payable 278,893
TOTAL LIABILITIES 325,454

NET POSITION
Restricted for individuals, organizations
and other governments 8,558,166
TOTAL NET POSITION $ 8,558,166
The accompanying notes are an integral part of these financial statements.

CITY OF AMERICAN CANYON
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
29 331
Total
Custodial
Funds

ADDITIONS
Other taxes $ 259,952
Special assessments 2,328,853
Interest and investment earnings 203,962
TOTAL ADDITIONS 2,792,767

DEDUCTIONS
Maintenance and operations 416,762
Debt Service:

Principal 993,400
Interest and other charges 427,218
TOTAL DEDUCTIONS 1,837,380

NET INCREASE (DECREASE) IN
FIDUCIARY NET POSITION 955,387
Net position , beginning of year 7,602,779
NET POSITION, END OF YEAR $ 8,558,166
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, 2023
30 332

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NOTES TO THE BASIC FINANCIAL STATEMENTS
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CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
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.
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CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
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. 337

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
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, proprietary and fiduciary 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.

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 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 338

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
34 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 339

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
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 include 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.

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 340

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
36 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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 increases the usefulness of governments’ financial statements by requiring recognition of certain subscription assets and outflows of resources based on the payment provisions of the contract. A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in exchange or exchange-like transaction. The City recognizes SBITA intangible right-to use assets for contracts that are both material and with contracts with options to extend that are reasonably certain to be exercised greater than 1 year. Periods for which both the City have an option to terminate the SBITA without permission from the other party are excluded from being recognized as SBITA intangible right-to use assets and liabilities. The City implemented this statement during the year ended June 30, 2023. There was no effect on the beginning fund balance or net position due to the implementation of this Statement. SBITAs recognized due to the implementation of this Statement totaled $319,155, which were reported as additions of subscription assets and liabilities in Notes F and G, respectively.

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 publicpublic 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. The City determined this Statement did not apply to the City during the year ended June 30, 2023.

In April 2022, the GASB issued Statement No. 99, Omnibus 2022. This Statement enhances 341

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
37 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 100, Accounting Changes and Error Corrections, an Amendment of GASB Statement No. 62. This Statement prescribes the accounting and financial reporting for each type of accounting change, including changes in accounting principles, changes in accounting estimates and changes to or within the financial reporting entity, and error corrections. This Statement requires changes in accounting principles and error corrections to be reported retroactively by restating prior periods; requires changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period; and requires changes in accounting estimates to be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of new pronouncements in absence of specific transition provisions in the new pronouncement. This Statement also requires the aggregate amount of adjustments to and restatements of beginning net position, fund balance or fund net position, as applicable, to be displayed by reporting unit in the financial statements. Furthermore, this Statement requires information presented in required supplementary information or supplementary information to be restated for error corrections, if practicable, but not for changes in accounting principles. The provisions of this Statement are effective for accounting changes and error corrections made in fiscal years 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 342

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
38 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.

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, Affordable Housing Capital Project Fund, Gas Tax Special Revenue Fund, General Plan Update Special Revenue Fund, Utility Underground 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, 2023 by $24,206, $119,508, $477,395, $215,337, $160,000 and $153,433, 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. 343

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
39 NOTE C – CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2023 consisted of the following:

Cash and investments 67,862,916 $
Restricted cash and investments 7,426,162
Total cash and investments of primary government 75,289,078 Cash and investments in Fiduciary Funds 4,937,174
Restricted cash and investments in Fiduciary Funds 3,844,498 Total cash and investments 84,070,750 $
Cash on hand 2,300 $
Deposits with financial institutions 2,364,285
Investments:

Held by City 77,883,021
Held by fiscal agents 3,821,144
Total investments 81,704,165
Total cash and investments 84,070,750 $
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.
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CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
40 NOTE C – CASH AND INVESTMENTS (Continued)
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 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:
345

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
41 NOTE C – CASH AND INVESTMENTS (Continued)
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:
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42 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) 54,980,631 $ 54,980,631 $
U.S. Treasury Notes 3,339,988 $ 5,809,077 $ 9,149,065
U.S. Government Agency Obligations 312,223 3,527,122 3,839,345 U.S. Corporate Obligations 721,012 3,345,988 1,836,843 5,903,843 Money Market Mutual Funds 4,070,170 4,070,170
Asset-Backed Securities 607 983,872 1,272,731 2,257,210 Supranational Note 912,864 912,864
Collateralized Mortgage Obligations 145,607 445,430 591,037 Total invesments 60,084,643 12,255,441 9,364,081 81,704,165 Cash on hand 2,300 2,300
Cash in bank 2,364,285 2,364,285
Total cash and investments 62,451,228 $ 12,255,441 $ 9,364,081 $ 84,070,750 $ 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 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, 2023, the average maturity of investments in LAIF was 260 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, 2023:
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43 NOTE C – CASH AND INVESTMENTS (Continued)
Aa2/AA
Investment Type Aaa/AAA Aa1/AA+ Aa3/AA- A1/A+ A2/A A3/A- Ba1/BB+ Total U.S. Government Agencies 3,839,345 $ $ 3,839,345
U.S. Corporate Obligations 413,748 $ 585,221 566,620 $ 1,443,797 $ 2,832,218 $ 62,239 $ 5,903,843 Money Market Mutual Funds 4,070,170 $ 4,070,170
Asset-Backed Securities 2,257,210 2,257,210
Supranational Note 912,864 912,864
Collateralized Mortage Obligations 591,037 591,037
Totals $ 4,253,093 7,831,281 $ 566,620 $ 585,221 $ 1,443,797 $ 2,832,218 $ 62,239 $ 17,574,469 Not rated:

LAIF 54,980,631
Exempt from credit rating disclosure:

U.S. Treasury Notes 9,149,065
Total investments $ 81,704,165
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, 2023 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, 2023, the City had $3,987,879 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 348

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44 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, 2023:

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 9,149,065 $ 9,149,065 $
U.S. Government Agency
Obligations 3,839,345 3,839,345
U.S. Corporate Obligations 5,903,843 5,903,843
Asset-Backed Securities 2,257,210 2,257,210
Supranational Note 912,864 912,864
Collateralized Mortgage Obligations 591,037 591,037
Total investments by fair value level 22,653,364 - $ 22,653,364 $ - $ Investments uncategorized:

LAIF 54,980,631
Negotiable Certificates of Deposit
Money Market Mutual Funds 4,070,170
Total investments 81,704,165 $
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. 349

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45 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, 2023 were as follows:

Amount
Fund Making Transfer Fund Receiving Transfers Transferred General Fund City Capital Projects Fund 700,000 $ (C)
Cabernet Village Lease Debt Service Fund 98,235 (C)
Engie City Debt Service Fund 17,750 (A)
Major Governmental Funds:

State and Federal Grants-City Special Revenue City Capital Projects Fund 405,143 (B) General Fund 30,346 (C)
Recycled Water Enterprise Fund 280 (B)
City Capital Projects Fire Operatsion Special Revenue 268,746 (B) Affordable Housing Captail Projects City Capital Projects Fund 7 (A) 0,492 Major Enterprise Funds:

Water General Fund 1,261,666 (A)
Wastewater Enterprise Fund 27,453 (A)
City Capital Projects Fund 158,804 (B)
Wastewater General Fund 985,592 (A)
City Capital Projects Fund 166,493 (B)
Recycled Water General Fund 52,980 (E)
City Capital Projects Fund 278,482 (E)
Nonmajor Special Revenue Funds:

Storm Drainage General Fund 384,308 (D)
City Capital Projects Fund 449,626 (B)
Measure T- Streets and Roads City Capital Projects Fund 1,051,704 (B) Gas Tax General Fund 300,000 (A)
City Capital Projects Fund 677,495 (B)
State Supplemental Law Enforcement General Fund 166,833 (A) Community Facilities District City Capital Projects Fund 1,535,73 (B) 4 Nonmajor Capital Projects Funds:

Park Improvement City Capital Projects Fund 28,235 (B)
Traffic Impact City Capital Projects Fund 9,825 (B)
Utility Underground City Capital Projects Fund 160,000 (A) Zero Water Footprint Recycled Water Enterprise Fund 14,910 (A) Nonmajor Debt Service Funds:

Engie City Wastewater Enterprise Fund 153,435 (B)
$ 9,454,567
(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, 2023, the following funds have interfund balances.
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46 NOTE D – INTERFUND TRANSACTIONS (Continued)
Fund Making Loan Fund Receiving Loan Amount
General Fund Internal Service Funds:

Legal Internal Service Fund 246,863 $
Nonmajor Special Revenue Funds:

Cannabis Fund 14,632
Community Facilities District 1,217,350
General Plan Update 162,211
Nonmajor Debt Service Funds:

Engie City 17,750
Fire District Operations Special Revenue Nonmajor Debt Service Funds:

Engie Fire 35,727
Total Due To/Due From Other Funds 1,694,533 $
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 retroactively to the rate earned by 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. In 2023, the Water Enterprise Fund advanced the Recycled Water Enterprise Fund an additional $1,136,140 for the Recycled Water System Expansion Project. As of June 30, 2023, the Recycled Water Fund owed $6,808,733 including accrued interest on the advances, $5,539,179 to the Water Fund and $1,269,544 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.

NOTE E – LOANS RECEIVABLE
At June 30, 2023, the City had the following loans receivable:

BEGIN Program 8,175,452 $
Satellite Affordable Housing Association 3,059,326
Mid-Peninsula Housing Coalition Loan 2,162,319
HOME Program 1,632,318
CDBG Housing Rehabilitation Program 408,960
CalHome Program 261,648
Other 51,976
15,751,999
Valuation allowance (8,081,827)
Loans, net $ 7,670,172
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47 NOTE E – LOANS RECEIVABLE (Continued)
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, 2023, residents owed the City $8,081,827 in loans offered by this program, which includes $2,862,927 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 $93,625, 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.

As of June 30, 2023, the loan balance was $3,059,326.

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, 2023, the loan balance was $2,162,319.

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, 2023, residents owed the City $1,632,318 in loans offered by this program, including accrued interest.
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June 30, 2023
48 NOTE E – LOANS RECEIVABLE (Continued)
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, 2023, residents owed the City $408,960 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, 2023, residents owed the City $261,648 in loans offered by this program.

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.
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June 30, 2023
49 NOTE F – CAPITAL ASSETS (Continued)
Capital Asset Additions and Retirements
Capital assets at June 30, 2023 consisted of the following:

Balance Balance at
July 01, 2022 Additions Retirements Transfers June 30, 2023 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 12,745,281 5, $ (1,825,255) 296,649 $ (7,454,764) $ 8, 761,911 Total capital assets,
not being depreciated 5,296,649 188,095,906 (7 (1,825,255) ,454,764) 184,112,536 Capital assets, being depreciated:

Buildings and improvements 51,201,341 14,766 (2,777,763) 1,208,946 49,647,290 Machinery and equipment 8,622,466 90,361 (229,829) 8,482,998 Infrastructure - streets and
storm drains 92,289,491 6,457,682 98,747,173
Lease assets - equipment 244,687 1 1, ,061,915 306,602
Subscription assets 347,939 347,939
Total capital assets,
being depreciated 152,357,985 1,514,981 (3,007,592) 7,666,628 158,532,002 Less accumulated depreciation for:

Buildings and improvements (24,309,749) (1,642,141) 2,777,763 (23, 174,127) Machinery and equipment (6,280,835) ( 194,667 510,716) (6 ,596,884) Infrastructure - streets and
storm drains (34,655,178) (2,169,418) (36,824,596)
Lease assets - equipment (42,951) ( (120,851) 163,802)
Subscription assets (102,810) ( 102,810)
Total accumulated depreciation (65,288,713) (4,545,936) 2,972,430 (66,862,219) Capital assets being
depreciated, net 87,069,272 (3, 030,955) 7,666,628 (35,162) 91,669,783

GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 2,265,694 275,165,178 $ (1,860,417) $ 211,864 $ 275,782,319 $ 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, including all lease and subscription assets. 354

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June 30, 2023
50 NOTE F – CAPITAL ASSETS (Continued)
Balance at Balance at
June 30, 2022 Additions Retirements Transfers June 30, 2023 Business-Type Activities
Capital assets, not being depreciated:

Land and improvements 2,208,769 $ 2,208,769 $
Construction in progress 8,892,209 1,035,071 $ (33,880) $ (5,729,945) $ 4,163,455 Total capital assets,
not being depreciated 1,035,071 11,100,978 (33,880) (5,729,945) 6,372,224 Capital assets, being depreciated:

Buildings and improvements 7,879,811 5,050,198 12,930,009 Water treatment and distribution 40,319,403 40,319,403
Equipment 3,293,101 925,960 4,219,061
Wastewater treatment and
collection 35,061,638 467,883 35,529,521
Recycled Water Treatment
and Distribution 5,871,108 5,871,108
Subscription technology 5,760 5,760
Total capital assets,
being depreciated 92,425,061 931,720 5,518,081 98,874,862 Less accumulated depreciation for:

Buildings and improvements (4,988,969) (300,664) (5,289,633) Water treatment and distribution (22,502,348) (1,196,657) (23,699,005) Equipment (2,497,330) (410,761) (2,908,091)
Wastewater treatment and
collection (19,458,409) (1,140,049) (20,598,458)
Recycled Water Treatment
and Distribution (2,254,628) (194,811) (2,449,439)
Subscription technology (240) (240)
Total accumulated depreciation (3,243,182) (51,701,684) (54,944,866) Capital assets being
depreciated, net 40,723,377 (2,311,462) 5,518,081 43,929,996

BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ (1,276,391) 51,824,355 $ (33,880) $ (211,864) $ 50,302,220 $ 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 359,494 $
Public works 3,663,747
Storm drain 522,695
Total Governmental Activities 4,545,936 $
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June 30, 2023
51 NOTE F – CAPITAL ASSETS (Continued)
Business-type Activities:

Water 1,274,314 $
Wastewater 1,746,613
Recycled Water 222,255
Total Business-type Activities 3,243,182 $
Project Commitments
At June 30, 2023, the City had outstanding commitments with contractors for the following projects:

Remaining
Project Commitment
Transportation projects 2,762,922 $
Recycled water projects 2,404,170
Parks projects 1,500,590
Civic facilities 198,854
Wastewater projects 103,431
Planning projects 4,940
$ 6,974,907
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June 30, 2023
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, 2023:

Original Balance Balance Current
Amount July 01, 2022 Additions Retirements June 30, 2023 Portion Governmental Activities
2020 City Hall Site Agreement

2.6%, due 05/01/34 4,569,064 $ 4,569,064 $ 4,569,064 $ 372,395 $ Bank of America
ENGIE Financed Purchase

1.79%, due 06/01/36 5,209,209 802,001 (41,371) $ 760,630 44,398 Municipal Asset Management, Inc.

Financed Purchase - 2.96%
due 06/17/24 314,188 69,026 (34,714) 34,312 34,312
Bank of America
Fire Engine Financed Purchase

2.56%, due 12/01/29 1,842,000 1,842,000 $ (102,000) 1,740,000 238,000 Enterprise Lease Liability 1,306,602 234,459 1,090,913 (201,306) 1,124,066 233,110 Subscription Liability 342,439 342,439 (109,146) 233,293 75,256 Total direct borrowings and direct placements 5,674,550 3,275,352 (488,537) 8,461,365 997,471 Compensated absences 748,333 803,133 (825,211) 726,255 684,682 Claims and judgments 2,133,981 (2,020,343) 113,638 113,638 Net pension liability 7,923,101 8,595,641 16,518,742
Other postemployment benefits 5,799,544 3,179,324 8,978,868 Total Governmental
Long-Term Liabilities 22,279,509 12,578,098 (3,334,091) 34,798,868 1,795,791 $ Less: Amount due within one year (2,917,374) (1,795,791) Total Governmental Long-Term
Liabilities, Net 19,362,135 $ 12,578,098 $ (3,334,091) $ 33,003,077 $ The Municipal Asset Management, Inc. lease, Enterprise Lease Liability, and subscription liability are reported in Internal Service Funds, so no principal payment expense and no other financing sources for the issuance of the leases and subscriptions is reported in governmental funds. 357

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June 30, 2023
53 NOTE G – LONG-TERM LIABILITIES (Continued)
Original Balance Balance Current
Amount July 01, 2022 Additions Retirements June 30, 2023 Portion Business-type Activities
State of California Davis-Grunsky Loan

2.5%, due 12/31/27 2,050,000 $ 432,406 $ (72,141) $ 360,265 $ 73,947 $ State Water Resources Control Board,
State Revolving Fund Loan

2.7%, due 07/15/22 10,859,470 722,377 (722,377)
Bank of America
ENGIE Financed Purchase

1.79%, due 06/01/36 5,209,209 4,232,536 (218,338) 4,014,198 234,306 Subscription Liability 5,760 $ (5,760)
Total direct borrowings and direct placements 5,387,319 5,760 (1,018,616) 4,374,463 308,253 Add: Unamortized interest on
Davis-Grunsky Loan 72,834 (11,513) 61,321
Compensated absences 229,691 233,865 (261,255) 202,301 164,140 Net pension liability 1,156,694 1,830,095 2,986,789
Other postemployment benefits 1,467,792 183,512 1,651,304 Total Business-type
Long-Term Liabilities 8,314,330 2,253,232 (1,291,384) 9,276,178 472,393 $ Less: Amount due within one year (1,145,950) (472,393)
Total Business-type
Activity Liabilities 7,168,380 $ 2,253,232 $ (1,291,384) $ 8,803,785 $ 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. 358

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June 30, 2023
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.

Fire Engine Financed Purchase Agreement
In August 2022, the Fire District entered into a purchase arrangement with a bank in the amount of $1,842,000 for two fire trucks and equipment. Debt service will be funded from the revenue of the Fire District Fund The contract rate is 2.56%. Monthly principal and interest payments ranging from $138,640 to $150,909 are due on July 1 and December 1 through December 1, 2029. 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.

Enterprise Lease Liability
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 seven vehicles in 2022 and 17 vehicles in 2023 under the agreement with payments of $57,934 per year starting in 2023 and final payments of $43,908 in 2028 through May 31, 2028. 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 City used a weighted average discount rate of 5.96% charged by the lessor. The lease assets are being amortized over

5.0 years, which is the remaining term of the current leases. As of June 30, 2023, the cost and accumulated amortization of the lease vehicles were $1,306,602 and $163,802, respectively. The agreement contains a default interest rate of the lesser of 18% or the highest rate permitted by law.

Subscription Based Information Technology Agreements (SBITA) The City entered into four SBITA contracts for productivity software. The City is required to make yearly payments ranging from $42,343 to $86,830 through July 1, 2026. The subscription agreements were discounted using a rate of 5.00%. The discount rates were based on the estimated incremental borrowing rate of the City at the SBITA commencement dates. Subscription asset cost was $347,959 and $5,760 and accumulated amortization was $102,810 and $240 for the governmental activities and business-type activities, respectively, as of June 30, 2023.

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 $4,466. 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.
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NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
55 NOTE G – LONG-TERM LIABILITIES (Continued)
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.

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 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, 2023 were as follows:

Year Ending
June 30: Principal Interest Principal Interest Principal Interest Principal Interest 2024 689,105 $ 153,637 $ 233,110 $ 59,159 $ 75,256 $ 11,574 $ $ 224,370 997,471 $ 2025 678,017 137,533 247,162 45,108 79,106 7,724 1,004,285 190,365 2026 698,183 121,966 262,072 30,197 38,481 3,862 998,736 156,025 2027 720,549 105,902 266,536 14,466 40,450 1,893 1,027,535 122,261 2028 742,824 89,348 115,186 2,654 92,002 858,010
2029-2033 2,893,887 224,440 2,893,887 224,440
2034-2038 681,441 13,693 13,693 681,441
Totals $ 846,519 7,104,006 $ 1,124,066 $ 151,584 $ 233,293 $ 25,053 $ 8,461,365 $ 1,023,156 $ Total
Governmental Activities
Loans Leases Subscriptions
Year Ending
June 30: Principal Interest
2024 308,253 $ 78,945 $
2025 326,856 72,765
2026 333,726 66,335
2027 361,867 59,596
2028 354,921 52,394
2029-2033 1,526,475 176,825
2034-2038 1,162,365 32,047
$ 538,907 4,374,463 $
Business-type Activities
360

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
56 NOTE G – LONG-TERM LIABILITIES (Continued)
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 loans through 2028 is $386,342. During fiscal year 2023, the principal and interest paid by the Water and Wastewater Funds for these loans was $82,951 and $741,881, respectively. The Water Fund and the Wastewater Funds had net revenues of $2,030,490 and $1,951,864, respectively, during fiscal year 2023.

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, 2023.

Special Assessment Debt Without City Commitment
At June 30, 2023, 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 3,305,500 $ American Canyon Road East AD Refunding Revenue Bonds, Series 2015 9,360,000 Community Facilities District No. 2018-1 (Green Island Road Project) Special Tax Revenue Bonds, Series 2020 5,000,000
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. 361

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
57 NOTE H – NET POSITION AND FUND BALANCES (CONTINUED)
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.

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. 362

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NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
58 NOTE H – NET POSITION AND FUND BALANCES (CONTINUED)
The Economic Development Reserve was established at $1,000,000 and is to be used to further the City’s adopted Economic Development program.

Fund balances of governmental funds were categorized as follows as of June 30, 2023:

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 57,812 57,812
Total Nonspendable 475,315 475,315
Restricted:

Public safety
Fire District capital
acquisition $ 1,419,737 1,419,737
Vehicle enforcement 144,765 144,765
Other 445,319 $ 455,860 10,541
Public works
Capital projects 81,957 $ 1,290,386 $ 6,973,462 8,345,805 Non-capital projects 7,193,016 7,193,016
Landscaping and lighting
districts 3,208,878 3,208,878
Storm drain projects 5,814,903 5,814,903
Community development,
planning and building 937,082 115,903 $ 310,074 $ 107,883 1,470,942 Parks
La Vigne Open Space 178,225 178,225
Newell Park Open Space 249,861 249,861
Other 1,694,129 1,694,129
Other activities 104,059 104,059
Total Restricted 1,185,906 445,319 115,903 81,957 1,290,386 310,074 26,850,635 30,280,180 Committed:

Contingency 6,615,030 1,392,733 8,007,763
Capital projects 1,300,000 1,300,000
Total Committed 7,915,030 1,392,733 9,307,763
Assigned:

Economic development 1,000,000 1,000,000
Fire operations 3,912,325 3,912,325
Total Assigned 1,000,000 3,912,325 4,912,325
Unassigned: 4,724,240 (1,983,835) 2,740,405
Total Fund Balance 15,300,491 $ 5,750,377 $ 115,903 $ 81,957 $ 1,290,386 $ 310,074 $ 24,866,800 $ 47,715,988 $ Net Position and Fund Equity Deficits
The Recycled Water Enterprise Fund, Cannabis Special Revenue Fund, Community Facility District Special Revenue Fund, General Plan Update Special Revenue Fund, Engie City Debt Service Fund Engie Fire Debt Service Fund and Legal Internal Service Fund had deficit fund balances or net position of $1,316,446, $14,632, $1,748,543, $162,211, $17,750, $40,699 and $308,268, respectively, at June 30, 2023. The deficits are expected to be covered by future grants, fees or charges for services in these funds.
363

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NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
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, 2023, the City made contributions of $34,418 and employees made contributions of $390,207to 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.
364

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
60 NOTE J – PENSION PLANS (Continued)
The Plan’s provisions and benefits in effect at June 30, 2023, 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 11.610% 7.760% 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 23.750% 21.840% 12.780% 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. 365

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
61 NOTE J – PENSION PLANS (Continued)
For the year ended June 30, 2023, the contributions paid to Plan were as follows:

City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool Total
Contributions - employer 1,386,650 $ 1,084,498 $ 6,686 $ 2,477,834 $ Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources: As of June 30, 2023, 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 10,068,806 $
Fire Safety Risk Pool 9,419,097
Fire Miscellaneous Risk Pool 17,628
Total Net Pension Liability 19, $ 505,531
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, 2022, 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, 2021 rolled forward to June 30, 2022 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, 2023 and 2022 were as follows:

City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool
Proportion - June 30, 2022 0.21322% 0.14211% 0.00230%
Proportion - June 30, 2023 0.21518% 0.13707% 0.00038%
Change - increase (decrease) 0.00196% -0.00504% -0.00193% For the year ended June 30, 2023, the City recognized pension expense (credit) of $1,447,847, $536,316, and $(15,630) for the City Miscellaneous Risk Pool, Fire Safety Risk Pool, Fire Miscellaneous Risk Pool and in total for the Plan, respectively. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources:
366

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
62 NOTE J – PENSION PLANS (Continued)
Deferred Outflows Deferred Inflows
City Miscellaneous Risk Pool of Resources of Resources
Pension contributions subsequent to measurement date 1,386,650 $ Differences between actual and expected experience 202,203 (135,428) $ Changes in assumptions 1,031,760
Change in employer's proportion 269,677
Differences between the employer's contribution and the employer's proportionate share of contributions (620,563) Net differences between projected and actual earnings
on plan investments 1,844,338
Total 4,734,628 $ (755,991) $
Fire Safety Risk Pool
Pension contributions subsequent to measurement date 1,084,498 $ Differences between actual and expected experience 389,822 (102,284) $ Changes in assumptions 949,730
Change in employer's proportion 415,812
Differences between the employer's contribution and the employer's proportionate share of contributions (656,534) Net differences between projected and actual earnings
on plan investments 1,487,407
Total 4,327,269 $ (758,818) $
Fire Miscellaneous Risk Pool
Pension contributions subsequent to measurement date 6,686 $ Differences between actual and expected experience 354 (237) $ Changes in assumptions 1,806
Change in employer's proportion (54,084)
Differences between the employer's contribution and the employer's proportionate share of contributions 30,586
Net differences between projected and actual earnings
on plan investments 3,229
Total 42,661 $ (54,321) $
Total for Plan 9,104,558 $ (1,569,130) $
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:
367

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
63 NOTE J – PENSION PLANS (Continued)
City Fire Fire
Year Ended Miscellaneous Safety Miscellaneous
June 30 Risk Pool Risk Pool Risk Pool Total
2024 615,419 $ $ (6, 701,172 $ 1, 212) $ 310,379
2025 541,764 (7, 552,444 1, 836) 086,372
2026 306,744 (6, 323,000 273) 623,471
2027 1,128,060 1,975 907,337 2, 037,372
$ 2, 2,591,987 $ (18,346) 483,953 $ 5, $ 057,594
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, 2021
Measurement date June 30, 2022
Actuarial cost method Entry-Age Normal Cost Method
Amortization method Level pecent of payroll
Asset valuation method Market value
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Payroll growth 2.80%
Projected salary increase 0.2% - 7.64% Miscellaneous and 0.77% to 15.49% Safety (1) Investment rate of return 6.9% (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 6.9% for each risk pool, which declined from 7.15% at June 30, 2022. 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 discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate 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. 368

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
64 NOTE J – PENSION PLANS (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. 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 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
Asset Class Allocation Real Return (a)
Global Equity- Cap-Weighted 30.0% 4.54%
Global Equity- Non-Cap-Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% 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 5.90% 5.90% 5.90% 5.90%
Net pension liability 16, $ 13,976,432 222,381 $ 20,259 $ 30,219,072 $ Current discount rate 6.90% 6.90% 6.90% 6.90%
Net pension liability 10, $ 9,419,097 068,806 $ 17,628 $ 19,505,531 $ 1% increase 7.90% 7.90% 7.90% 7.90%
Net pension liability 5, $ 5,694,506 005,941 $ 15,463 $ 10,715,910 $ 369

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
65 NOTE J – PENSION PLANS (Continued)
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, 2023, the City had no significant contributions payable to the Plan.

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 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, 2023, the City’s and employee contributions to the 401a Plan were $50,629 and $60,583, 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.
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NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
66 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
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.

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, 2023, the City’s direct payments of insurance premiums were $441,003, implicit subsidy was $204,211 and cash contributions to the trust were $236,849, resulting in total contributions of $882,063. During the fiscal year ended June 30, 2023, the Fire District’s direct payments of insurance premiums were $261,156 and the implicit subsidy was $111,733, resulting in total contributions of $372,889. The City and Fire District make contributions to the CERBT, which is administered by CalPERS. 371

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
67 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Net OPEB Liability: The City and Fire District's net OPEB liabilities were measured as of June 30, 2022, and the total OPEB liabilities used to calculate the net OPEB liabilities were determined by actuarial valuations as of June 30, 2021.

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, 2022 June 30, 2022
Actuarial cost method Entry-age normal cost method Entry-age normal cost method Actuarial assumptions:

Discount rate 5.60% 6.15%
Inflation 2.50% 2.50%
Salary increases 3.00% 3.00%
Investment rate of return 5.60% 6.15%
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 5.6% grading down to 4% in 2076 5.6% 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;
The healthcare trend shown above was developed using the Getzen Model 2021_b published by the Society of Actuaries. 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 2021 Annual 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 has elected the CERBT Strategy 2 portfolio and the Fire District has 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:
372

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
68 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Asset Class City Plan Fire Plan City Plan Fire Plan
Global equity 34.0% 49.0% 6.80% 6.80%
Fixed income 41.0% 23.0% 4.50% 4.50%
Real estate investment trusts (REITs) 17.0% 20.0% 6.20% 6.20% Treasury inflation protected securities (TIPS) 5.0% 5.0% 3.60% 3.60% Commodities 3.0% 3.0% 3.50% 3.50%
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

5.60% and 6.15%, respectively. The City discount rate was lowered from 6.00% to 5.60% and the Fire District discount rate was lowered from 7.00% to 6.150%, 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, 2023:

Total OPEB Plan Fiduciary Net OPEB
City Plan Liability Net Position Liability/(Asset)
Balance at June 30, 2022 12,529,860 $ 7,381,518 $ 5,148,342 $ Changes in the year:

Service cost 517,905 517,905
Interest 766,260 766,260
Changes in assumptions 684,550 684,550
Difference between expected and actual experience
Contributions - employer 885,236 (885,236)
Net investment income (1,005,664) 1,005,664
Benefit payments (553,536) (553,536)
Administrative expenses (1,901) 1,901
Net changes 1,415,179 (675,865) 2,091,044
Balance at June 30, 2023 13,945,039 $ 6,705,653 $ 7,239,386 $ Increase (Decrease)
373

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
69 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Total OPEB Plan Fiduciary Net OPEB
Fire Plan Liability Net Position Liability/(Asset)
Balance at June 30, 2022 6,144,263 $ 4,025,269 $ 2,118,994 $ Changes in the year:

Service cost 198,928 198,928
Interest 432,889 432,889
Difference between expected and actual experience
Changes in assumptions 681,322 681,322
Contributions - employer 621,817 (621,817)
Net investment income (579,397) 579,397
Benefit payments (318,137) (318,137)
Administrative expenses (1,073) 1,073
Net changes 995,002 (276,790) 1,271,792
Balance at June 30, 2023 7,139,265 $ 3,748,479 $ 3,390,786 $ Total City and Fire Plans 21,084,304 $ 10,454,132 $ 10,630,172 $ 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

4.60% 5.60% 6.60%
Net OPEB liability - City Plan 9,213,968 $ 7,239,386 $ 5,624,990 $ Current
1% Decrease Discount Rate 1% Increase

5.15% 6.15% 7.15%
Net OPEB liability - Fire Plan 4,349,291 $ 3,390,786 $ 2,600,245 $ 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 5,489,651 $ 7,239,386 $ 9,407,942 $ Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB liability - Fire Plan 2, $ 3, 579,629 $ 4,383,284 390,786 $ 374

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
70 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
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.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources: For the year ended June 30, 2023, the City and Fire District recognized OPEB expense of $1,379,114 and $355,218, respectively, for a total OPEB expense of $1,734,332.

At June 30, 2023, 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 882,063 $ Differences between actual and expected experience 66,681 (198,209) $ Changes in assumptions 2,417,253
Net differences between projected and actual earnings
on plan investments 564,589
Total - City Plan 3,930,586 $ (198,209) $
Fire Plan
OPEB contributions subsequent to measurement date 372,889 $ Differences between actual and expected experience (775,530) $ Changes in assumptions 920,958 (47,823)
Net differences between projected and actual earnings
on plan investments 354,947
Total - Fire Plan 1,648,794 $ (823,353) $
Total - City and Fire Plans 5,579,380 $ (1,021,562) $
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
2024 548,655 $ 17,993 $ 566,648 $
2025 538,269 13,703 551,972
2026 502,064 14,022 516,086
2027 705,321 193,080 898,401
2028 369,270 16,060 385,330
Thereafter 186,735 197,694 384,429
$ 452,552 2,850,314 $ 3,302,866 $
375

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
71 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Payable to the OPEB Plan: At June 30, 2023, there were no significant payables to the OPEB plans.

NOTE L – RISK MANAGEMENT
Insurance Coverage
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 through the Plan JPA is $500,000 and $100,000, respectively, with excess liability coverage through commercial carriers of $999,500,000, for total coverage of $1 billion, subject to a $5,000 deductible for the Plan JPA coverage and $500,000 for pooled coverage. Flood damage coverage limit is $25 million and crime coverage, including employee theft, forgery, computer fraud, identity fraud, and fund/money transfer, ranges from $25,000 to $2,000,000 with a deductible of $10,000.

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. 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:
376

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
72 NOTE L – RISK MANAGEMENT (Continued)
Year Ended Year Ended Year Ended
June 30, 2023 June 30, 2022 June 30, 2021
Unpaid claims, beginning of fiscal year 2,133,981 $ 1,636,881 $ 1,064,318 $ Incurred claims and claim adjustment expenses (including IBNRs) 815,192 (36,828) 935,941 Claim payments (1,983,515) (318,092) (363,378)
Unpaid claims, end of fiscal year 113,638 $ 2,133,981 $ 1,636,881 $ 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
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 received notices of the commencement of legal action under the California Environmental Quality Act from three entities related to the development of a warehouse project. These cases have been partially consolidated and transferred to Sacramento Superior Court. The outcome and impact of these cases cannot reasonably be determined.

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, 2023 was approximately $2.33 million, of which $654,000 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 agreed to extend the contract through 2085.

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, 2023, $606,000 has been spent on this project.

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 377

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2023
73 NOTE M – OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Continued) 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. The City identified projects eligible for these funds. The City incurred $258,000 of eligible expenses in fiscal year 2023. Unspent amounts would be returned to the U.S.

Treasury.
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF AMERICAN CANYON
Budget and Actual
General Fund
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Property taxes 12,500,375 $ 12,688,335 $ 12,438,663 $ (249,672) $ Sales taxes 3,020,000 5,890,000 5,901,732 11,732
Other taxes 2,851,150 2,907,850 2,944,624 36,774
Fines and forfeitures 120,230 94,380 156,371 61,991
Licenses and permits 699,500 1,131,247 1,070,286 (60,961) Intergovernmental 91,481 91,481 77,866 (13,615)
Charges for services 2,053,820 2,058,251 2,159,290 101,039 Use of money and property 416,534 416,534 306,271 (110,263) Other 517,864 581,141 643,249 125,385
TOTAL REVENUES 22,334,231 25,795,942 25,698,352 (97,590)

EXPENDITURES
Current:

General government 6,831,946 7,789,626 7,383,404 406,222 Public safety 8,322,284 8,322,284 8,337,957 (15,673)
Public works 2,927,766 2,898,792 2,575,048 323,744
Community development 2,355,324 3,273,201 3,568,827 (295,626) Parks and recreation 4,388,678 3,964,971 3,070,204 894,767 Storm drain 395,224 395,224 384,808 10,416
Capital outlay 3,000 3,000 29,908 (26,908)
TOTAL EXPENDITURES 25,224,222 26,647,098 25,350,156 1,296,942

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (2,889,991) (851,156) 348,196 1,199,352

OTHER FINANCING SOURCES (USES)
Transfers in 3,125,365 3,355,365 3,181,725 (173,640)
Transfers out (201,527) (901,527) (815,985) 85,542

TOTAL OTHER FINANCING
SOURCES AND USES 2,453,838 2,923,838 2,365,740 (88,098) NET CHANGE IN FUND BALANCE 33,847 1,602,682 2,713,936 1,111,254 Fund balance, beginning of year 12,586,555 12,586,555 12,586,555 FUND BALANCE, END OF YEAR 12,620,402 $ 14,189,237 $ 15,300,491 $ 1,111,254 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 74 382

CITY OF AMERICAN CANYON
Budget and Actual
Fire District Operations Special Revenue Fund
For the year ended June 30, 2023
Budgeted Amounts Actual Amounts
Variance with
Final Budget
Original Final

REVENUES
Property taxes 5,545,487 $ 5,545,487 $ 5,403,686 $ (141,801) $ Other taxes 754,969 754,969 739,041 (15,928)
Charges for services 348,995 348,995 382,801 33,806
Use of money and property 54,815 54,815 91,151 36,336
Other 158,000 158,000 159,543 1,543
TOTAL REVENUES 6,862,266 6,862,266 6,776,222 (86,044)

EXPENDITURES
Current:

Public safety 6,698,858 6,698,858 7,064,902 (366,044)
Debt service:

Principal 136,490 136,490 102,000 34,490
Interest and other charges 34,490 (34,490)
Capital outlay 1,907,833 1,907,833 1,565,995 341,838
TOTAL EXPENDITURES 8,743,181 8,743,181 8,767,387 (24,206)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (1,880,915) (1,880,915) (1,991,165) (110,250)

OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt, net 1, 1,840,000 840,000 1,842,000 (2,000) Transfers in 268,746 268,746

TOTAL OTHER FINANCING
SOURCES AND USES 1,840,000 2,110,746 266,746
NET CHANGE IN FUND BALANCE (1,880,915) (40,915) 119,581 156,496 Fund balance, beginning of year 5,630,796 5,630,796 5,630,796 FUND BALANCE, END OF YEAR 3,749,881 $ 5,589,881 $ 5,750,377 $ 156,496 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 75 383

CITY OF AMERICAN CANYON
Budget and Actual
CDBG, CalHome and HOME Loan Development Special Revenue Fund For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 806,000 $ 806,000 $ 6,051 $ (799,949) $ Use of money and property 74 74 2,359 2,285
Other 57,587 76,910 19,323
TOTAL REVENUES 806,074 863,661 85,320 (778,341)

EXPENDITURES
Current:

Community development 806,000 806,000 10,308 795,692
TOTAL EXPENDITURES 806,000 806,000 10,308 795,692

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 74 57,661 75,012 17,351
NET CHANGE IN FUND BALANCE 74 57,661 75,012 17,351
Fund balance, beginning of year 40,891 40,891 40,891
FUND BALANCE, END OF YEAR 40,965 $ 98,552 $ 115,903 $ 17,351 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 76 384

CITY OF AMERICAN CANYON
Budget and Actual
State and Federal Grants - City Special Revenue Fund
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 8,498,750 $ 8,498,750 $ 1,179,213 $ (7,319,537) $ TOTAL REVENUES 8,498,750 8,498,750 1,179,213 (7,319,537)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 8,498,750 8,498,750 1,179,213 (7,319,537)

OTHER FINANCING SOURCES (USES)
Transfers out (2,224,229) (2,163,229) (435,769) 1,727,460

TOTAL OTHER FINANCING
SOURCES AND USES (2,163,229) (2,224,229) (435,769) 1,727,460 NET CHANGE IN FUND BALANCE 6,274,521 6,335,521 743,444 (5,592,077) Fund balance (deficit), beginning of year (661,487) (661,487) (661,487) FUND BALANCE, END OF YEAR 5,613,034 $ 5,674,034 $ 81,957 $ (5,592,077) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 77 385
June 30, 2023 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 0.21518% 0.21322% 0.20221% 0.19697% 0.19312% 0.19133% 0.18829% 0.19150% 0.20960% Proportionate share of the net pension liability 10,068,806 $ 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 6,427,864 $ 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 156.64% 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 77.69% 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) 6.90% 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2023 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 1,386,650 $ 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 (1,386,650) (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 6,970,020 $ 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 19.89% 19.38% 19.05% 16.81% 16.85% 15.33% 15.12% 15.07% 14.31% Valuation date for contribution rates - June 30: 2020 2019 2018 2017 2016 2015 2014 2013 2012 Valuation date for financial reporting - June 30: 2021 2020 2019 2018 2017 2016 2015 2014 2013 Measurement date - June 30: 2022 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% 2.50% 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% 7.00% 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.

Required Supplementary Information
For the Year Ended June 30, 2023

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - CITY MISCELLANEOUS PLAN (UNAUDITED) Last 10 Years
Changes in assumptions:

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -

CITY MISCELLANEOUS PLAN (UNAUDITED)
Entry age normal cost method
Level percentage of payroll, closed
Varies, not more than 30 years

CITY OF AMERICAN CANYON
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
Last 10 Years
78 386
June 30, 2023 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 0.13707% 0.14211% 0.12336% 0.12236% 0.12252% 0.12085% 0.12357% 0.12520% 0.11999% Proportionate share of the net pension liability 9,419,097 $ 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 2,291,394 $ 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 411.06% 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 71.46% 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) 6.90% 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2023 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 1,084,498 $ 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 (1,084,498) (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 2,340,562 $ 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 46.33% 43.68% 47.92% 49.80% 46.59% 42.82% 36.64% 40.82% 36.57% Valuation date for contribution rates - June 30: 2020 2019 2018 2017 2016 2015 2014 2013 2012 Valuation date for financial reporting - June 30: 2021 2020 2019 2018 2017 2016 2015 2014 2013 Measurement date - June 30: 2022 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% 2.50% 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% 7.00% 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
Most recent CalPERS Experience Study
50-57 years. Probablilities of retirement are based on the 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, 2023

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - FIRE SAFETY PLAN (UNAUDITED)
79 387
June 30, 2023 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 0.00038% 0.00230% 0.00129% 0.00178% 0.00233% 0.00232% 0.00270% 0.00304% 0.00294% Proportionate share of the net pension liability 17,628 $ 43,738 $ 54,399 $ 71,296 $ 87,920 $ 91,294 $ 93,760 $ 83,520 $ 72,565 $ Covered payroll - measurement period 79,922 $ 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 22.06% 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 8.69% 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) 6.90% 7.15% 7.15% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% June 30, 2023 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 6,686 $ 18,869 $ 24,560 $ 20,740 $ 18,930 $ 19,016 $ 6,602 $ 6,056 $ 5,443 $ Contributions in relation to the actuarially
determined contributions (6,686) (18,869) (24,560) (20,740) (18,930) (19,016) (6,602) (6,056) (5,443) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll - fiscal year 85,706 $ 79,922 $ 73,720 $ 27,107 $ N/A N/A N/A N/A N/A Contributions as a percentage of covered payroll 7.80% 23.61% 33.32% 76.51% N/A N/A N/A N/A N/A Valuation date for contribution rates - June 30: 2020 2019 2018 2017 2016 2015 2014 2013 2012 Valuation date for financial reporting - June 30: 2021 2020 2019 2018 2017 2016 2015 2014 2013 Measurement date - June 30: 2022 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% 2.50% 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% 7.00% 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, 2023

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - FIRE MISCELLANEOUS PLAN (UNAUDITED) 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
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
80 388
2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost 517,905 $ 441,947 $ 429,075 $ 335,883 $ 326,100 $ 326,100 $ Interest 766,260 700,679 657,168 602,996 553,400 519,700 Changes in assumptions 684,550 1,901,027 945,591
Differences between expected and
actual experience 91,627 (416,017) 2,700
Benefit payments (553,536) (490,357) (455,763) (390,596) (351,400) (407,000) Net change in total OPEB liability 1,415,179 2,644,923 630,480 1,077,857 530,800 438,800 Total OPEB liability - beginning 12,529,860 9,884,937 9,254,457 8,176,600 7,645,800 7,207,000 Total OPEB liability - ending (a) 13,945,039 $ 12,529,860 $ 9,884,937 $ 9,254,457 $ 8,176,600 $ 7,645,800 $ Plan fiduciary net position
Contributions - employer 885,236 $ 812,638 $ 571,500 $ 576,296 $ 693,900 $ 673,700 $ Net investment income (1,005,664) 1,536,192 186,101 300,131 322,826 366,285 Benefit payments (553,536) (490,357) (455,763) (390,596) (351,400) (407,000) Administrative expenses (1,901) (2,116) (2,575) (1,033) (2,126) (1,785) Net change in plan fiduciary net position (675,865) 1,856,357 299,263 484,798 663,200 631,200 Plan fiduciary net position - beginning 7,381,518 5,525,161 5,225,898 4,741,100 4,077,900 3,446,700 Plan fiduciary net position - ending (b) 6,705,653 $ 7,381,518 $ 5,525,161 $ 5,225,898 $ 4,741,100 $ 4,077,900 $ Net OPEB liability - ending (a)-(b) 7,239,386 $ 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 48.09% 58.91% 55.89% 56.47% 57.98% 53.34% Covered-employee payroll - measurement
period 6,520,034 $ 6,734,681 $ 6,399,829 $ 5,955,051 $ 6,053,800 $ 5,811,270 $ Net OPEB liability as percentage of
covered-employee payroll 111.03% 76.45% 68.12% 67.65% 56.75% 61.40% Notes to Schedule:

Valuation date - June 30 2021 2021 2019 2019 2017 2017
Measurement period - fiscal year ended June 30 2022 2021 2020 2019 2018 2017 Benefit changes: None None None None None None
Changes in assumptions:

Discount rate 5.60% 6.00% 6.95% 6.95% 7.25% 7.25%
Health care trend:

Initial rate 5.60% 5.70% 5.40% 5.40% Various Various
Trends down to 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
In year 2076 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, 2023

CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios - City Plan Note: OPEB contributions are not based on a measure of pay so the City discloses covered-employee payroll. 81 389
2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost 198,928 $ 231,790 $ 230,045 $ 226,062 $ 210,881 $ 146,079 $ Interest 432,889 411,091 388,764 417,289 393,002 413,368 Differences between expected and
actual experience (122,741) (837,691) (705,918)
Changes in assumptions 681,322 192,051 (72,183) 184,537 126,927 60,313 Benefit payments (318,137) (334,432) (287,603) (267,920) (266,215) (250,572) Net change in total OPEB liability 995,002 377,759 259,023 (277,723) 464,595 (336,730) Total OPEB liability - beginning 6,144,263 5,766,504 5,507,481 5,785,204 5,320,609 5,657,339 Total OPEB liability - ending (a) 7,139,265 $ 6,144,263 $ 5,766,504 $ 5,507,481 $ 5,785,204 $ 5,320,609 $ Plan fiduciary net position
Contributions - employer 621,817 $ 511,759 $ 517,331 $ 483,301 $ 530,288 $ 414,364 $ Net investment income (579,397) 857,965 101,238 149,305 162,465 175,524 Benefit payments (318,137) (334,432) (287,603) (267,920) (266,215) (250,572) Administrative and other expenses (1,073) (1,189) (1,392) (530) (3,591) (904) Net change in plan fiduciary net position (276,790) 1,034,103 329,574 364,156 422,947 338,412 Plan fiduciary net position - beginning 4,025,269 2,991,166 2,661,592 2,297,436 1,874,489 1,536,077 Plan fiduciary net position - ending (b) 3,748,479 $ 4,025,269 $ 2,991,166 $ 2,661,592 $ 2,297,436 $ 1,874,489 $ Net OPEB liability - ending (a)-(b) 3,390,786 $ 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 52.51% 65.51% 51.87% 48.33% 39.71% 35.23% Covered-employee payroll - measurement
period 2,393,068 $ 2,172,958 $ 2,277,760 $ 2,837,425 $ 2,509,387 $ 2,167,463 $ Net OPEB liability as percentage of
covered-employee payroll 141.69% 97.52% 121.85% 100.30% 138.99% 158.99% Notes to Schedule:

Valuation date - June 30 2021 2021 2019 2019 2017 2017
Measurement period - fiscal year ended - June 30 2022 2021 2020 2019 2018 2017 Benefit changes: None None None None None None
Changes in assumptions:

Discount rate 6.15% 7.00% 7.05% 6.95% 7.10% 7.28%
Health care trend:

Initial rate 5.60% 5.70% 6.50% 6.50% 7.50% 8.00%
Trends down to 4.00% 4.00% 5.00% 5.00% 5.00% 5.00%
In year 2076 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, 2023
82 390
2023 2022 2021 2020 2019 2018
Actuarially determined contribution -
employer fiscal year 984,045 $ 834,799 $ 812,638 $ 571,500 $ 576,700 $ 582,400 $ Contributions in relation to the actuarially
determined contributions (882,063) (885,236) (812,638) (571,500) (578,522) (692,000) Contribution deficiency (excess) 101,982 $ (50,437) $ - $ - $ (1,822) $ (109,600) $ Covered-employee payroll - employer
fiscal year 6,969,315 $ 6,936,721 $ 6,734,681 $ 6,399,829 $ 5,955,051 $ 6,053,800 $ Contributions as a percentage of covered
payroll 12.66% 12.76% 12.07% 8.93% 9.71% 11.43%
Notes to Schedule:

Valuation date - June 30 2021 2021 2019 2019 2017 2017
Measurement period - fiscal year ended June 30 2022 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 5.60% 5.90% 6.95% 6.95% 7.25% 7.25%
Inflation 2.50% 2.50% 2.50% 2.50% Not stated Not stated Payroll growth 3.00% 3.00% 3.00% 3.00% 3.25% 3.25%
Investment rate of return 5.60% 5.90% 6.95% 6.95% 7.25% 7.25% Healthcare cost-trend rate, initial 5.60% 5.70% 5.40% 5.40% Varies Varies Heathcare trending down to 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Retirement age
Mortality
Assumed HMO/PPO split Not stated Not stated Not stated Not stated 65%/35% 65%/35% Percentage electing to cover spouse (1) (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
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.

Most recent CalPERS Experience Study
Most recent CalPERS Experience Study
30 years
Market value of assets
For the Year Ended June 30, 2023

CITY OF AMERICAN CANYON
Last Ten Fiscal Years
Required Supplementary Information (Unaudited)
Schedule of Contributions to the OBEP Plan - City Plan
83 391
2023 2022 2021 2020 2019 2018
Contractually determined contribution -
employer fiscal year 401,768 $ 480,296 $ 467,573 $ 507,998 $ 492,634 $ 457,056 $ Contributions in relation to the contractually
determined contributions (372,889) (621,817) (511,759) (507,998) (483,301) (530,288) Contribution deficiency (excess) 28,879 $ (141,521) $ (44,186) $ - $ 9,333 $ (73,232) $ Covered-employee payroll - employer
fiscal year 3,393,183 $ 2,238,147 $ 2,172,958 $ 2,922,548 $ 2,837,425 $ 2,509,387 $ Contributions as a percentage of covered
payroll 10.99% 27.78% 23.55% 17.38% 17.03% 21.13%
Notes to Schedule:

Valuation date - June 30 2021 2021 2019 2019 2017 2017
Measurement period - fiscal year ended June 30 2022 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 6.15% 6.90% 7.05% 6.95% 7.10% 7.28%
Inflation 2.50% 2.50% 2.75% 2.50% 2.75% 2.75%
Payroll growth 3.00% 3.00% 3.25% 3.00% 3.25% 3.25%
Investment rate of return 6.15% 6.90% 7.05% 7.05% 7.10% 7.28% Healthcare trend, initial 5.60% 5.70% 6.50% 6.50% 7.50% 8.00% Healthcare trending down to 4.00% 4.00% 5.00% 5.00% 5.00% 5.00% Retirement age
Mortality
Percentage electing to cover spouse 85% 85% 85% 85% 85% 85% 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.

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, 2023
Entry Age Normal Cost Method
Level percentage of payroll, closed
30 years
Market value of assets
84 392

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393

SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON

MAJOR CAPITAL PROJECTS AND DEBT SERVICE FUNDS
394

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395

CITY OF AMERICAN CANYON
Budget and Actual
City Capital Projects
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 1,001,354 $ 1,271,848 $ 270,494 $
TOTAL REVENUES 1,001,354 1,271,848 270,494

EXPENDITURES
Current:

Public works 1,768,658 (1,768,658)
Capital outlay $ 11,409,660 9,728,320 3,737,939 7,671,721 TOTAL EXPENDITURES 9,728,320 11,409,660 5,506,597 5,903,063

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (9,728,320) (10,408,306) (4,234,749) 6,173,557

OTHER FINANCING SOURCES (USES)
Transfers in 9,642,748 11,324,088 5,692,033 (5,632,055) Transfers out (268,746) (268,746)

TOTAL OTHER FINANCING
SOURCES AND USES 11,324,088 9,642,748 5,423,287 (5,900,801) NET CHANGE IN FUND BALANCE (85,572) 915,782 1,188,538 272,756 Fund balance, beginning of year 101,848 101,848 101,848 FUND BALANCE, END OF YEAR 16,276 $ 1,017,630 $ 1,290,386 $ 272,756 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 85 396

CITY OF AMERICAN CANYON
Budget and Actual
Affordable Housing Capital Projects Fund
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 1,831,436 $ 1,527,424 $ 218,886 $ (1,308,538) $ Use of money and property 253 253 5,220 4,967
Other 3,871 3,871
TOTAL REVENUES 1,831,689 1,527,677 227,977 (1,299,700)

EXPENDITURES
Current:

Community development 90,000 (90,000)
TOTAL EXPENDITURES 90,000 (90,000)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,831,689 1,527,677 137,977 (1,389,700)

OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (100,000) (70,492) (29,508)

TOTAL OTHER FINANCING
SOURCES AND USES (100,000) (100,000) (70,492) (29,508)
NET CHANGE IN FUND BALANCE 1,731,689 1,427,677 67,485 (1,360,192) Fund balance, beginning of year 242,589 242,589 242,589 FUND BALANCE, END OF YEAR 1,974,278 $ 1,670,266 $ 310,074 $ (1,360,192) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 86 397

NON-MAJOR GOVERNMENTAL FUNDS
398

SPECIAL REVENUE FUNDS
Storm Drainage – 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.
399
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. 400
Storm
Drainage
Measure T -
Streets and
Roads Gas Tax
BEGIN
Program
State
Supplemental
Law
Enforcement
ASSETS
Cash and investments $ 4,095,190 5,810,305 $ 1,584,507 $ 107,883 $ 4,132 $ Restricted cash and investments
Taxes receivable 808,461 90,082
Accounts receivable, net
Interest receivable 31,935 22,259 16,023 518
Due from other governments 86,159
Loans receivable, net 93,625
TOTAL ASSETS 5,832,564 $ 4,935,586 $ 1,690,612 $ 201,508 $ 90,809 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 17,661
Due to other funds
TOTAL LIABILITIES 17,661

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue $ 352,296 $ 93,625 $ 86,159

TOTAL DEFERRED INFLOWS
OF RESOURCES 352,296 93,625 86,159

FUND BALANCES
Restricted for:

Public safety 4,650
Public works 4,583,290 $ 1,690,612
Storm drain projects 5,814,903
Community development,
planning and building 107,883
Parks
Unassigned
TOTAL FUND BALANCES (DEFICITS) 4,583,290 5,814,903 1,690,612 107,883 4,650

TOTAL LIABILITIES,

DEFERRED INFLOWS AND
FUND BALANCES 5,832,564 $ 4,935,586 $ 1,690,612 $ 201,508 $ 90,809 $

CITY OF AMERICAN CANYON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023

SPECIAL REVENUE FUNDS
87 401
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
$ 177,479 3,207,626 $ 247,885 $ 5,891 $ 825 $ 915,681 $

2,034

1,415 17,528 1,976 21 3,433

$ 178,894 3,227,188 $ 249,861 $ 5,891 $ - $ 846 $ - $ 919,114 $ $ 669 16,089 $ 532,018 $
14,632 $ 1,217,350 162,211 $
669 16,089 14,632 1,749,368 162,211
2,221 21
2,221 21
$ 5,891
3,208,878 $ 919,114
249,861 178,225 $
(14,632) (1,748,543) (162,211)
178,225 3,208,878 249,861 5,891 (14,632) (1,748,543) (162,211) 919,114 $ 178,894 3,227,188 $ 249,861 $ 5,891 $ - $ 846 $ - $ 919,114 $

SPECIAL REVENUE FUNDS
88 402
Total
Nonmajor
Special
Revenue Funds
Fire
Mitigation
Park
Improvement Traffic Impact Infrastructure
ASSETS
Cash and investments $ 1,410,257 16,157,404 $ 1,681,045 $ 4,069,020 $ 32,446 $ Restricted cash and investments 299,535
Taxes receivable 900,577
Accounts receivable, net 305 179,796
Interest receivable 9,175 95,108 13,399 15,001 259
Due from other governments 86,159
Loans receivable, net 93,625
TOTAL ASSETS 17,332,873 $ 1,419,737 $ 1,694,444 $ 4,263,817 $ 332,240 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 315 566,437 $
Due to other funds 1,394,193
TOTAL LIABILITIES 1,960,630 315

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 534,322

TOTAL DEFERRED INFLOWS
OF RESOURCES 534,322

FUND BALANCES
Restricted for:

Public safety 1,419,737 10,541 $
Public works 4,263,817 10,401,894 $ 332,240 $
Storm drain projects 5,814,903
Community development,
planning and building 107,883
Parks 428,086 1,694,129
Unassigned (1,925,386)
TOTAL FUND BALANCES (DEFICITS) 1,419,737 14,837,921 1,694,129 4,263,817 332,240

TOTAL LIABILITIES,

DEFERRED INFLOWS AND
FUND BALANCES 17,332,873 $ 1,419,737 $ 1,694,444 $ 4,263,817 $ 332,240 $

CITY OF AMERICAN CANYON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023

CAPITAL PROJECTS FUNDS
89 403
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
$ 305,261 1,506,402 $ 557,185 $ 9,561,616 $
299,535

180,101
2,433 1,713 4,411 46,391

$ 307,694 1,508,115 $ 561,596 $ 10,087,643 $ - $ - $ - $ - $ 315 $ 4,97 $ 4,972 2 $
17,750 $ 35,727 53,477
315 17,750 40,699 58,449

1,419,737
$ 307,694 1,508,115 $ 561,596 $ 6,973,462

1,694,129
(17,750) (40,699) (58,449)
307,694 1,508,115 561,596 10,087,328 (17,750) (40,699) (58,449) $ 307,694 1,508,115 $ 561,596 $ 10,087,643 $ - $ - $ - $ - $

CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS
90 404
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 25,719,020
Restricted cash and investments 299,535
Taxes receivable 900,577
Accounts receivable, net 180,101
Interest receivable 141,499
Due from other governments 86,159
Loans receivable, net 93,625
TOTAL ASSETS 27,420,516 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 571,724
Due to other funds 1,447,670
TOTAL LIABILITIES 2,019,394

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 534,322

TOTAL DEFERRED INFLOWS
OF RESOURCES 534,322

FUND BALANCES
Restricted for:

Public safety 1,430,278
Public works 17,375,356
Storm drain projects 5,814,903
Community development,
planning and building 107,883
Parks 2,122,215
Unassigned (1,983,835)
TOTAL FUND BALANCES (DEFICITS) 24,866,800

TOTAL LIABILITIES,

DEFERRED INFLOWS AND
FUND BALANCES 27,420,516 $

CITY OF AMERICAN CANYON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
91 405
Storm Drainage
Measure TStreets and
Roads Gas Tax
BEGIN
Program
State
Supplemental
Law
Enforcement

REVENUES
Sales taxes $ 1,985,005 1,976 $
Special assessments
Intergovernmental 1,013,474 $ 165,271 $
Charges for services 34,610 $
Use of money and property 86,159 93,336 44,400 1,562
Other 2,280
TOTAL REVENUES 97,592 2,071,164 1,057,874 34,610 166,833

EXPENDITURES
Current:

General government
Public works 27,782 248,640
Community development
Parks and recreation
Debt Service:

Principal
Interest and other charges
TOTAL EXPENDITURES 27,782 248,640

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,071,164 69,810 809,234 34,610 166,833

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,051,704) (833,934) (977,495) (166,833)

TOTAL OTHER FINANCING
SOURCES AND USES (1,051,704) (833,934) (977,495) (166,833) NET CHANGE IN FUND BALANCES (764,124) 1,019,460 (168,261) 34,610 Fund balances (deficits), beginning of year 3,563,830 6,579,027 1,858,873 73,273 4,650

FUND BALANCES (DEFICITS),
END OF YEAR 5,814,903 $ 4,583,290 $ 1,690,612 $ 107,883 $ 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, 2023

SPECIAL REVENUE FUNDS
92 406
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

$ 609,724 42,247 $

4,495 $
4,080 72,841 $ 5,697 $ 37 357 9,894 $
484,930
4,080 682,565 5,697 42,284 4,852 494,824
270,137
418,147 6,426
750 $
880 236

880 418,147 236 750 6,426 270,137
3,200 264,418 5,461 (750) 35,858 (265,285) 494,824

(1,535,734)
(1,535,734)
3,200 264,418 5,461 (750) (1,499,876) (265,285) 494,824 175,025 2,944,460 244,400 5,891 (13,882) (248,667) 103,074 424,290 $ 178,225 3,208,878 $ 249,861 $ 5,891 $ (14,632) $ (1,748,543) $ (162,211) $ 919,114 $

SPECIAL REVENUE FUNDS
93 407
Total
Nonmajor
Special
Revenue Funds
Fire
Mitigation
Park
Improvement
Traffic
Impact Infrastructure

REVENUES
Sales taxes $ 1,986,981
Special assessments 651,971
Intergovernmental 1,178,745
Charges for services 402,977 39,105 $ 1,731 $ 949,048 $ Use of money and property 24,191 318,363 38,827 48,224 9,339 $ Other 487,210
TOTAL REVENUES 4,662,375 427,168 40,558 997,272 9,339

EXPENDITURES
Current:

General government 270,137
Public works 700,995 200,781
Community development 750
Parks and recreation 1,116
Debt Service:

Principal
Interest and other charges
TOTAL EXPENDITURES 972,998 200,781

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 427,168 3,689,377 40,558 796,491 9,339

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (4,565,700) (28,235) (9,825)

TOTAL OTHER FINANCING
SOURCES AND USES (4,565,700) (28,235) (9,825)
NET CHANGE IN FUND BALANCES (876,323) 427,168 12,323 786,666 9,339 Fund balances (deficits), beginning of year 992,569 15,714,244 1,681,806 3,477,151 322,901

FUND BALANCES (DEFICITS),
END OF YEAR 14,837,921 $ 1,419,737 $ 1,694,129 $ 4,263,817 $ 332,240 $

CAPITAL PROJECTS FUNDS

CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023
94 408
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

$ 300,000 108,747 $ 85,795 $ 1,848,298 $
6,921 23,696 12,747 163,945

306,921 132,443 98,542 2,012,243

200,781

26,516 $ 14,855 $ 41,371 $
98,235 $ 8,984 5,034 112,253
200,781 98,235 35,500 19,889 153,624
306,921 132,443 98,542 1,811,462 (98,235) (35,500) (19,889) (153,624) 98,235 17,750 115,985
(160,000) (14,910) (212,970) (153,435) (153,435)
(160,000) (14,910) (212,970) 98,235 (135,685) (37,450)
146,921 132,443 83,632 1,598,492 (171,185) (19,889) (191,074) 160,773 1,375,672 477,964 8,488,836 153,435 (20,810) 132,625 $ 307,694 1,508,115 $ 561,596 $ 10,087,328 $ - $ (17,750) $ (40,699) $ (58,449) $

CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS
95 409
Total Nonmajor
Governmental
Funds

REVENUES
Sales taxes $ 1,986,981
Special assessments 651,971
Intergovernmental 1,178,745
Charges for services 1,887,403
Use of money and property 482,308
Other 487,210
TOTAL REVENUES 6,674,618

EXPENDITURES
Current:

General government 270,137
Public works 901,776
Community development 750
Parks and recreation 1,116
Debt Service:

Principal 41,371
Interest and other charges 112,253
TOTAL EXPENDITURES 1,327,403

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 5,347,215

OTHER FINANCING SOURCES (USES)
Transfers in 115,985
Transfers out (4,932,105)

TOTAL OTHER FINANCING
SOURCES AND USES (4,816,120)
NET CHANGE IN FUND BALANCES 531,095
Fund balances (deficits), beginning of year 24,335,705

FUND BALANCES (DEFICITS),
END OF YEAR 24,866,800 $

CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2023
96 410

CITY OF AMERICAN CANYON
Budget and Actual
Storm Drainage Special Revenue Fund
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Sales taxes 1,976 $ 1,976 $
Investment earnings 52,458 $ 52,458 $ 93,336 40,878
Other 2,280 2,280
TOTAL REVENUES 52,458 52,458 97,592 45,134

EXPENDITURES
Current:

Storm drain 60,000 206,397 27,782 178,615
TOTAL EXPENDITURES 60,000 206,397 27,782 178,615

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (7,542) (153,939) 69,810 223,749

OTHER FINANCING SOURCES (USES)
Transfers out (750,000) (854,120) (833,934) 20,186

TOTAL OTHER FINANCING
SOURCES AND USES (854,120) (750,000) (833,934) 20,186
NET CHANGE IN FUND BALANCE (757,542) (1,008,059) (764,124) 243,935 Fund balance, beginning of year 6,579,027 6,579,027 6,579,027 FUND BALANCE, END OF YEAR 5,821,485 $ 5,570,968 $ 5,814,903 $ 243,935 $ The accompanying notes are an integral part of these financial statements.

Statement of Revenues, Expenditures and Changes in Fund Balance 97 411

CITY OF AMERICAN CANYON
Budget and Actual
Measure T- Streets and Roads
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Sales taxes 1,600,000 $ 1,600,000 $ 1,985,005 $ 385,005 $ Use of money and property 3,842 3,842 86,159 82,317
TOTAL REVENUES 1,603,842 1,603,842 2,071,164 467,322

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,603,842 1,603,842 2,071,164 467,322

OTHER FINANCING SOURCES (USES)
Transfers out (1,966,995) (1,864,495) (1,051,704) 915,291

TOTAL OTHER FINANCING
SOURCES AND USES (1,966,995) (1,864,495) (1,051,704) 915,291 NET CHANGE IN FUND BALANCE (363,153) (260,653) 1,019,460 1,382,613 Fund balance, beginning of year 3,563,830 3,563,830 3,563,830 FUND BALANCE, END OF YEAR $ 3,200,677 3,303,177 $ 4,583,290 $ 1,382,613 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 98 412

CITY OF AMERICAN CANYON
Budget and Actual
Gas Tax
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 1,066,337 $ 1,066,337 $ 1,013,474 $ (52,863) $ Use of money and property 3,282 3,282 44,400 41,118
TOTAL REVENUES 1,069,619 1,069,619 1,057,874 (11,745)

EXPENDITURES
Current:

Public works 3,000 3,000 248,640 (245,640)
TOTAL EXPENDITURES 3,000 3,000 248,640 (245,640)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,066,619 1,066,619 809,234 (257,385)

OTHER FINANCING SOURCES (USES)
Transfers out (642,000) (745,740) (977,495) (231,755)

TOTAL OTHER FINANCING
SOURCES AND USES (745,740) (642,000) (977,495) (231,755) NET CHANGE IN FUND BALANCE 424,619 320,879 (168,261) (489,140) Fund balance, beginning of year 1,858,873 1,858,873 1,858,873 FUND BALANCE, END OF YEAR 2,283,492 $ 2,179,752 $ 1,690,612 $ (489,140) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 99 413

CITY OF AMERICAN CANYON
Budget and Actual
BEGIN Program
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 34,610 $ 34,610 $
TOTAL REVENUES 34,610 34,610

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 34,610 34,610
NET CHANGE IN FUND BALANCE 34,610 34,610
Fund balance, beginning of year 73,273 $ 73,273 73,273
FUND BALANCE, END OF YEAR $ 107,883 73,273 $ 107,883 $ - $ Schedule of Revenues, Expenditures and Changes in Fund Balance 100
414

CITY OF AMERICAN CANYON
Budget and Actual
State Supplemental Law Enforcement
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 163,000 $ 163,000 $ 165,271 $ 2,271 $ Use of money and property 132 132 1,562 1,430
TOTAL REVENUES 163,132 163,132 166,833 3,701

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 163,132 163,132 166,833 3,701

OTHER FINANCING SOURCES (USES)
Transfers out (188,000) (188,000) (166,833) 21,167

TOTAL OTHER FINANCING
SOURCES AND USES (188,000) (188,000) (166,833) 21,167
NET CHANGE IN FUND BALANCE (24,868) (24,868) 24,868
Fund balance, beginning of year 4,650 4,650 4,650
FUND BALANCE, END OF YEAR (20,218) $ (20,218) $ 4,650 $ 24,868 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 101
415

CITY OF AMERICAN CANYON
Budget and Actual
La Vigne Landscape and Lighting
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Special assessments 640,500 $ 640,500 $ 609,724 $ (30,776) $ Use of money and property 18,145 18,145 72,841 54,696
TOTAL REVENUES 658,645 658,645 682,565 23,920

EXPENDITURES
Current:

Public works 483,614 487,973 418,147 69,826
TOTAL EXPENDITURES 483,614 487,973 418,147 69,826

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 175,031 170,672 264,418 93,746

OTHER FINANCING SOURCES (USES)
Transfers out (88,212) (88,212) 88,212

TOTAL OTHER FINANCING
SOURCES AND USES (88,212) (88,212) 88,212
Fund balance, beginning of year 2,944,460 2,944,460 2,944,460 FUND BALANCE, END OF YEAR 3,031,279 $ 3,026,920 $ 3,208,878 $ 181,958 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 102
416

CITY OF AMERICAN CANYON
Budget and Actual
La Vigne Open Space
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 421 421 $ 4,080 $ 3,659 $
TOTAL REVENUES 421 421 4,080 3,659

EXPENDITURES
Current:

Parks and recreation 7,600 7,600 880 6,720
TOTAL EXPENDITURES 7,600 7,600 880 6,720

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (7,179) (7,179) 3,200 10,379 NET CHANGE IN FUND BALANCE (7,179) (7,179) 3,200 10,379 Fund balance, beginning of year 175,025 175,025 175,025 FUND BALANCE, END OF YEAR 167,846 $ 167,846 $ 178,225 $ 10,379 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 103
417

CITY OF AMERICAN CANYON
Budget and Actual
Newell Park Open Space
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 7,067 7,067 $ 5,697 $ (1,370) $ TOTAL REVENUES 7,067 7,067 5,697 (1,370)

EXPENDITURES
Current:

Parks and recreation 14,100 14,100 236 13,864
TOTAL EXPENDITURES 14,100 14,100 236 13,864

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (7,033) (7,033) 5,461 12,494 NET CHANGE IN FUND BALANCE (7,033) (7,033) 5,461 12,494 Fund balance, beginning of year 244,400 244,400 244,400 FUND BALANCE, END OF YEAR 237,367 $ 237,367 $ 249,861 $ 12,494 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 104
418

CITY OF AMERICAN CANYON
Budget and Actual
Cannabis
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

EXPENDITURES
Current:

Community development $ 5,000 5,000 $ 750 $ 4,250 $
TOTAL EXPENDITURES 5,000 5,000 750 4,250

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (5,000) (5,000) (750) 4,250
NET CHANGE IN FUND BALANCE (5,000) (5,000) (750) 4,250
Fund balance, beginning of year (13,882) (13,882) (13,882)

FUND BALANCE (DEFICIT),
END OF YEAR $ (18,882) (18,882) $ (14,632) $ 4,250 $
Schedule of Revenues, Expenditures and Changes in Fund Balance 105
419

CITY OF AMERICAN CANYON
Budget and Actual
Community Facilities District
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Special assessments 30,000 $ 42,247 $ 12,247 $
Use of money and property 37 37
TOTAL REVENUES 30,000 42,284 12,284

EXPENDITURES
Current:

Public works 6,426 (6,426)
TOTAL EXPENDITURES 6,426 (6,426)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 30,000 35,858 5,858

OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt 3,200,000 3,200,000
Transfers out $ (3,200,000) (3,200,000) (1,535,734) 1,664,266

TOTAL OTHER FINANCING
SOURCES AND USES (3,200,000) (1,535,734) 4,864,266
NET CHANGE IN FUND BALANCE 30,000 (3,200,000) (1,499,876) 4,870,124 Fund balance (deficit), beginning of year (248,667) (248,667) (248,667)

FUND BALANCE (DEFICIT),
END OF YEAR $ (218,667) (3,448,667) $ (1,748,543) $ 4,870,124 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 106
420

CITY OF AMERICAN CANYON
Budget and Actual
General Plan Update
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 39,444 $ 39,444 $ 4,495 $ (34,949) $ Use of money and property 449 449 357 (92)
TOTAL REVENUES 39,893 39,893 4,852 (35,041)

EXPENDITURES
Current:

General government 54,800 54,800 270,137 (215,337)
TOTAL EXPENDITURES 54,800 54,800 270,137 (215,337)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (14,907) (14,907) (265,285) (250,378) NET CHANGE IN FUND BALANCE (14,907) (14,907) (265,285) (250,378) Fund balance, beginning of year 103,074 103,074 103,074

FUND BALANCE (DEFICIT),
END OF YEAR 88,167 $ 88,167 $ (162,211) $ (250,378) $
Schedule of Revenues, Expenditures and Changes in Fund Balance 107
421

CITY OF AMERICAN CANYON
Budget and Actual
Legal Settlement
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 779 779 $ 9,894 $ 9,115 $
Other 484,930 484,930
TOTAL REVENUES 779 779 494,824 494,045

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 779 779 494,824 494,045
NET CHANGE IN FUND BALANCE 779 779 494,824 494,045
Fund balance, beginning of year 424,290 424,290 424,290 FUND BALANCE, END OF YEAR 425,069 $ 425,069 $ 919,114 $ 494,045 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 108
422

CITY OF AMERICAN CANYON
Budget and Actual
Fire Mitigation
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 442,148 $ 442,148 $ 402,977 $ (39,171) $ Use of money and property 10,366 10,366 24,191 13,825
TOTAL REVENUES 452,514 452,514 427,168 (25,346)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 452,514 452,514 427,168 (25,346) NET CHANGE IN FUND BALANCE 452,514 452,514 427,168 (25,346) Fund balance, beginning of year 992,569 992,569 992,569 FUND BALANCE, END OF YEAR 1,445,083 $ 1,445,083 $ 1,419,737 $ (25,346) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 109
423

CITY OF AMERICAN CANYON
Budget and Actual
Park Improvement
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 1,844,599 $ 2,255,211 $ 1,731 $ (2,253,480) $ Use of money and property 2,948 2,948 38,827 35,879
TOTAL REVENUES 1,847,547 2,258,159 40,558 (2,217,601)

EXPENDITURES
Current:

Parks and recreation 134,783 134,783 134,783
TOTAL EXPENDITURES 134,783 134,783 134,783

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 1,712,764 2,123,376 40,558 (2,082,818)

OTHER FINANCING SOURCES (USES)
Transfers out (371,100) (1,103,080) (28,235) 1,074,845

TOTAL OTHER FINANCING
SOURCES AND USES (1,103,080) (371,100) (28,235) 1,074,845 NET CHANGE IN FUND BALANCE 1,341,664 1,020,296 12,323 (1,007,973) Fund balance, beginning of year 1,681,806 1,681,806 1,681,806 FUND BALANCE, END OF YEAR 3,023,470 $ 2,702,102 $ 1,694,129 $ (1,007,973) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 110
424

CITY OF AMERICAN CANYON
Budget and Actual
Traffic Impact
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 2,364,497 $ 1,385,514 $ 949,048 $ (436,466) $ Use of money and property 34,879 34,879 48,224 13,345
TOTAL REVENUES 2,399,376 1,420,393 997,272 (423,121)

EXPENDITURES
Current:

Public works 50,218 50,218 200,781 (150,563)
TOTAL EXPENDITURES 50,218 50,218 200,781 (150,563)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 2,349,158 1,370,175 796,491 (573,684)

OTHER FINANCING SOURCES (USES)
Transfers out (342,208) (342,208) (9,825) 332,383

TOTAL OTHER FINANCING
SOURCES AND USES (342,208) (342,208) (9,825) 332,383
NET CHANGE IN FUND BALANCE 2,006,950 1,027,967 786,666 (241,301) Fund balance, beginning of year 3,477,151 3,477,151 3,477,151 FUND BALANCE, END OF YEAR 5,484,101 $ 4,505,118 $ 4,263,817 $ (241,301) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 111
425

CITY OF AMERICAN CANYON
Budget and Actual
Infrastructure
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 75 75 $ 9,339 $ 9,264 $
TOTAL REVENUES 75 75 9,339 9,264

EXPENDITURES
Capital outlay 314,821 314,821 314,821
TOTAL EXPENDITURES 314,821 314,821 314,821

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (314,746) (314,746) 9,339 324,085 NET CHANGE IN FUND BALANCE (314,746) (314,746) 9,339 324,085 Fund balance, beginning of year 322,901 322,901 322,901 FUND BALANCE, END OF YEAR 8,155 $ 8,155 $ 332,240 $ 324,085 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 112
426

CITY OF AMERICAN CANYON
Budget and Actual
Civic Facilities
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 865,273 $ 674,112 $ 108,747 $ (565,365) $ Use of money and property 3,047 3,047 23,696 20,649
TOTAL REVENUES 868,320 677,159 132,443 (544,716)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 868,320 677,159 132,443 (544,716)

OTHER FINANCING SOURCES (USES)
Transfers out (210,000) (210,000) 210,000

TOTAL OTHER FINANCING
SOURCES AND USES (210,000) (210,000) 210,000
NET CHANGE IN FUND BALANCE 658,320 467,159 132,443 (334,716) Fund balance, beginning of year 1,375,672 1,375,672 1,375,672 FUND BALANCE, END OF YEAR 2,033,992 $ 1,842,831 $ 1,508,115 $ (334,716) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 113
427

CITY OF AMERICAN CANYON
Budget and Actual
Utility Underground
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 300,000 $ 300,000 $
Use of money and property $ 376 376 $ 6,921 6,545
TOTAL REVENUES 376 376 306,921 306,545

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 376 376 146,921 146,545
Fund balance, beginning of year 160,773 160,773 160,773 FUND BALANCE, END OF YEAR 161,149 $ 161,149 $ 307,694 $ 146,545 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 114
428

CITY OF AMERICAN CANYON
Budget and Actual
Zero Water Footprint
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 600,089 $ 236,815 $ 85,795 $ (151,020) $ Use of money and property 764 12,74 764 7 11,983
TOTAL REVENUES 600,853 237,579 98,542 (139,037)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 600,853 237,579 98,542 (139,037)

OTHER FINANCING SOURCES (USES)
Transfers out (677,509) (677,509) (14,910) 662,599

TOTAL OTHER FINANCING
SOURCES AND USES (677,509) (677,509) (14,910) 662,599
NET CHANGE IN FUND BALANCE (76,656) (439,930) 83,632 523,562 Fund balance, beginning of year 477,964 477,964 477,964 FUND BALANCE, END OF YEAR 401,308 $ 38,034 $ 561,596 $ 523,562 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 115
429

CITY OF AMERICAN CANYON
Budget and Actual
Cabernet Village Lease Debt Service Fund
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

EXPENDITURES
Debt service:

Interest and other charges 98,235 $ 98,235 $ 98,235 $
TOTAL EXPENDITURES 98,235 98,235 98,235

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (98,235) (98,235) (98,235)

OTHER FINANCING SOURCES (USES)
Transfers in 98,235 98,235 98,235

TOTAL OTHER FINANCING
SOURCES AND USES 98,235 98,235 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
430

CITY OF AMERICAN CANYON
Budget and Actual
Engie City Debt Service
For the year ended June 30, 2023
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

EXPENDITURES
Debt service:

Principal 26,516 $ 26,516 $ 26,516 $
Interest and other charges 8,984 8,984 8,984
TOTAL EXPENDITURES 35,500 35,500 35,500

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (35,500) (35,500) (35,500)

OTHER FINANCING SOURCES (USES)
Transfers in 35,500 35,500 17,750 (17,750) $
Transfers out (153,435) (153,435)

TOTAL OTHER FINANCING
SOURCES AND USES 35,500 35,500 (135,685) (171,185)
NET CHANGE IN FUND BALANCE (171,185) (171,185)
Fund balance, beginning of year 153,435 153,435 153,435

FUND BALANCE (DEFICIT),
END OF YEAR 153,435 $ 153,435 $ (17,750) $ (171,185) $
Schedule of Revenues, Expenditures and Changes in Fund Balance 117
431

INTERNAL SERVICE FUNDS
432

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.
433

CITY OF AMERICAN CANYON
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
ASSETS
Current assets:

Cash and investments 433,227 $ 495,950 $ 363,486 $ 1,292,663 $ Accounts receivable, net 11,520 11,520
Interest receivable 4,467 2,704 10,556 3,385
Prepaid expenses 359 359 45,999 46,717
Total current assets 436,971 512,296 412,189 1,361,456
Non-current assets:

Capital Assets:

Depreciable, net of accumulated depreciation 14,479 1,688,282 245,129 1,947,890 Total non-current assets 14,479 1,688,282 245,129 1,947,890 TOTAL ASSETS 451,450 2,200,578 657,318 3,309,346

DEFERRED OUTFLOW OF RESOURCES
Pension plan 37,415 89,662 12,274 139,351
OPEB plan 47,560 47,560 3,538 98,658
Total deferred outflows of resources 84,975 137,222 15,812 238,009

LIABILITIES
Current Liabilities:

Accounts payable 32,897 50,049 44,101 61,405 $ 188,452
Accrued expenses 2,441 1,887 397 4,725
Accrued interest payable 46 10,918 10,964
Due to other funds 246,863 246,863
Compensated absences, current portion 4,675 14,803 19,478 Bonds, notes and loans payable,
current portion 267,422 75,256 342,678
Total current liabilities 39,459 334,761 130,672 308,268 813,160 Non-current liabilities:

Bonds, notes and loans payable 890,956 158,037 1,048,993 Net pension liability 79,567 190,679 26,102 296,348
Net OPEB liability 87,596 87,596 6,515 181,707
Total non-current liabilities 167,163 1,169,231 190,654 1,527,048 TOTAL LIABILITIES 206,622 1,503,992 321,326 308,268 2,340,208

DEFERRED INFLOW OF RESOURCES
Pension plan 5,974 14,317 1,960 22,251
OPEB plan 2,398 2,398 178 4,974
Total deferred inflows of resources 8,372 16,715 2,138 27,225

NET POSITION
Net investment in capital assets 14,479 528,252 11,836 554,567 Unrestricted 288,841 306,952 337,830 (308,268) 625,355
TOTAL NET POSITION (DEFICIT) $ 817,093 321,431 $ 349,666 $ (308,268) $ 1,179,922 $ 118
434

CITY OF AMERICAN CANYON
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2023
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds

REVENUES
Charges for services $ 672,600 666,501 $ 915,799 $ 182,942 $ 2,437,842 $ TOTAL OPERATING REVENUES 666,501 672,600 915,799 182,942 2,437,842

OPERATING EXPENSES
Employee services 192,223 49,885 11,842 253,950
Maintenance and operations 460,957 455,218 690,216 289,993 1,896,384 Depreciation and amortization 287 321,915 102,810 425,012 TOTAL OPERATING EXPENSES 511,129 969,356 804,868 289,993 2,575,346 OPERATING INCOME (LOSS) 155,372 (296,756) 110,931 (107,051) (137,504)

NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenue 11,007 7,194 3,379 21,580 Other revenue 5,157 5,157
Interest expense (40,008) (10,918) (50,926)
Gain (loss) on disposal of capital assets 8,761 8,761

TOTAL NON-OPERATING
REVENUE (EXPENSES) 7,194 (15,083) (7,539) (15,428)
CHANGE IN NET POSITION (311,839) 162,566 103,392 (107,051) (152,932) Net position (deficit), beginning of year 1,128,932 158,865 246,274 (201,217) 1,332,854

TOTAL NET POSITION (DEFICIT),
END OF YEAR 321,431 $ 817,093 $ 349,666 $ (308,268) $ 1,179,922 $ 119
435
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash paid to suppliers (470,421) $ (439,185) $ (665,868) $ (182,942) $ (1,758,416) $ Cash paid to employees and related benefits (76,458) (170,982) (15,902) (263,342) Cash received from interfund services provided 666,501 672,600 915,799 182,942 2,437,842 Other receipts 10,815 10,815
CASH PROVIDED BY OPERATING ACTIVITIES 119,622 73,248 234,029 426,899

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Capital assets purchased (14,766) (133,651) (148,417)
Proceeds from disposal of capital assets 40,352 40,352
Principal paid on long-term liabilities (123,975) (114,646) (238,621) Interest paid on long-term liabilities (40,049) (40,049)

CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (14,766) (257,323) (114,646) (386,735) CASH FLOWS FROM INVESTING ACTIVITIES:

Collection of interest and investment revenue 4,141 7,400 907 12,448

INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 108,997 (176,675) 120,290 52,612
Cash and cash equivalents, beginning of year 324,230 672,625 243,196 1,240,051 CASH AND CASH EQUIVALENTS, END OF YEAR 433,227 $ 495,950 $ 363,486 $ - $ 1,292,663 $

RECONCILIATION OF OPERATING INCOME (LOSS)
TO CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) 155,372 $ (296,756) $ 110,931 $ (107,051) $ (137,504) $ Adjustments to reconcile operating income (loss)
to cash provided (used) by operating activities:

Depreciation and amortization 287 321,915 102,810 425,012 Other receipts 5,157 5,157
Changes in operating assets and liabilities:

Accounts and other receivables 5,846 5,658 11,504
Prepaid expenses (107) (107) (17,029) (17,243)
Accounts payable, accrued expenses and due to other funds 12,937 (10,594) 40,006 101,205 143,554 Compensated absences 3,420 (905) 2,515
Deferred outflows of resources - pension plan (10,839) (58,810) (6,950) (76,599) Net pension liability 24,506 126,711 15,171 166,388
Deferred inflows of resources - pension plan (47,214) (47,343) (8,862) (103,419) Deferred outflows of resources - OPEB plans (9,089) (9,089) 1,779 (16,399) Net OPEB liability 24,271 24,271 (2,237) 46,305
Deferred inflows of resources - OPEB plans (10,391) (10,391) (1,590) (22,372) CASH PROVIDED BY OPERATING ACTIVITIES 119,622 $ 73,248 $ 234,029 $ - $ 426,899 $ 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, 2023
120
436

CUSTODIAL FUNDS
437

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. 438
American
Canyon Road
East
Assessment
District
La Vigne
Assessment
District
Community
Facility
District No.
2018-1
Tourism
Improvement
District Total
ASSETS
Cash and investments 1,082,593 $ 1,057,821 $ 2,708,683 $ 88,077 $ 4,937,174 $ Restricted cash and investments 349,380 322,889 3,172,229 3,844,498 Taxes receivable 4,149 2,594 54,368 61,111
Interest receivable 9,202 8,724 22,313 598 40,837
TOTAL ASSETS 1,445,324 1,392,028 5,903,225 143,043 8,883,620

LIABILITIES
Accounts payable 46,561 46,561
Accrued interest payable 113,350 40,988 124,555 278,893 TOTAL LIABILITIES 113,350 40,988 124,555 46,561 325,454

NET POSITION
Restricted for individuals, organizations
and other governments 1, 1,351,040 331,974 5,778,670 96,482 8,558,166 TOTAL NET POSITION 1,331,974 $ 1,351,040 $ 5,778,670 $ 96,482 $ 8,558,166 $ Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023

CITY OF AMERICAN CANYON
Custodial Funds
121
439
American
Canyon Road
East
Assessment
District
La Vigne
Assessment
District
Community
Facility
District No.
2018-1
Tourism
Improvement
District Total

ADDITIONS
Other taxes $ 259,952 259,952 $
Special assessments 1,019,384 $ 427,275 $ 882,194 $ 2,328,853 Interest and investment earnings 32,227 23,372 146,351 2,012 203,962 TOTAL ADDITIONS 450,647 1,051,611 1,028,545 261,964 2,792,767

DEDUCTIONS
Maintenance and operations 67,813 35,603 59,849 253,497 416,762 Debt Service:

Principal 595,000 313,400 85,000 993,400
Interest and other charges 148,233 124,908 154,077 427,218 TOTAL DEDUCTIONS 473,911 811,046 298,926 253,497 1,837,380

NET INCREASE (DECREASE) IN
FIDUCIARY NET POSITION (23,264) 240,565 729,619 8,467 955,387 Net position , beginning of year 1,091,409 1,374,304 5,049,051 88,015 7,602,779 NET POSITION, END OF YEAR $ 1,351,040 1,331,974 $ 5,778,670 $ 96,482 $ 8,558,166 $ Custodial Funds

CITY OF AMERICAN CANYON
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
June 30, 2023
122
440
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.
441
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities: Net investment in capital assets 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 $ 266,988,674 $ Restricted 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 36,942,980 Unrestricted 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 4,743,410 Total governmental activities net position 287,977,479 $ 277,810,094 $ 280,471,556 $ 280,552,158 $ 288,482,205 $ 289,115,974 $ 289,735,595 $ 298,755,253 $ 303,593,510 $ 308,675,064 $ Business-type activities: Net investment in capital assets 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 $ 45,866,437 $ Restricted 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 6,879,458 Unrestricted 8,214,087 4,224,005 6,993,828 9,422,288 11,766,749 13,269,512 15,043,433 17,697,686 18,298,635 15,959,775 Total business-type activities 63,538,585 $ 57,579,755 $ 60,467,493 $ 62,188,039 $ 66,801,641 $ 68,343,495 $ 68,849,003 $ 71,033,381 $ 70,995,646 $ 68,705,670 $ Primary government (City wide totals) Net investment in capital assets 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 $ 312,855,111 $ Restricted 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 43,822,438 Unrestricted 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 20,703,185 Total primary government net position 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 $ 377,380,734 $ 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
442
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses:Governmental activities:

General government 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 $ 9,789,205 $ Public safety 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 13,571,896Public works 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 8,387,534Community development 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 3,677,752Parks and recreation 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 3,093,188Storm Drain - - - - - - 315,909 350,946 365,855 401,695Interest on long-term debt 344,223 329,915 278,204 262,354 246,458 229,456 249,866 163,633 292,804 126,887 Total governmental activities expenses 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 39,048,157Business-type activities:

Water 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 $ 8,955,804 $ Wastewater 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 5,591,878Recycled Water 273,011 18,586 557,261 Total business-type activities expenses 9,746,819 11,363,721 10,355,419 10,130,510 10,611,052 10,443,358 11,413,375 12,719,842 13,516,625 15,104,943Total City government expenses $ 39,322,765 34,076,669 $ 39,893,601 $ 41,216,334 $ 40,744,154 $ 42,874,000 $ 44,562,424 $ 45,152,809 $ 47,292,040 $ 54,153,100 $ Program Revenues:Governmental activities:

Charges for services:

General government 484,057 $ 534,179 $ 636,987 $ 724,671 $ 900,185 $ 599,289 $ 769,362 $ 518,482 $ 622,830 $ 802,991 $ Public safety 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 1,585,452Public works 2,203,836 2,442,299 4,891,107 1,990,415 3,326,094 725,299 2,498,096 1,860,742 916,039 1,988,677Community development 857,994 2,438,744 2,662,203 5,351,403 1,921,393 2,140,534 1,628,919 1,640,602 1,883,673 2,540,651Parks and recreation 392,717 441,946 406,163 1,034,664 1,291,887 328,236 156,108 95,597 671,863 327,341 Operating grants and contributions 363,581 476,130 1,078,889 1,333,432 762,518 1,282,102 1,088,467 1,307,790 4,748,169 2,039,244 Capital grants and contributions 11,145,194 381,050 1,449,076 907,342 13,110,677 1,690,897 87,150 7,699,791 1,237,762 937,649Total governmental activities program revenues 16,349,187 8,224,695 12,585,461 12,638,812 23,135,345 8,230,236 7,945,785 15,003,639 11,673,132 10,222,005 Business-type activities:

Charges for services:

Water 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 $ 8,544,184 $ Wastewater 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 4,940,178Recycled Water 478,915 113,591 226,361 Operating grants and contributions 4,026 10,410 711,601 580,429 254,863 215,630 207,410 438,415 240,304 318,918Capital grants and contributions 4,084,830 242,025 2,301,541 284,400 3,851,481 200,585 468,533 1,462,249 1,826,213 568,830 Total business-type activities programs revenues 8,500,254 12,916,597 12,305,391 12,366,543 15,348,318 11,774,407 12,561,295 15,262,218 15,782,385 14,598,471 Total City government program revenues $ 16,724,949 29,265,784 $ 24,890,852 $ 25,005,355 $ 38,483,663 $ 20,004,643 $ 20,507,080 $ 30,265,857 $ 27,455,517 $ 24,820,476 $ -------------------------------------------------------------------------------------------------------- Prior Years ------------------------------------------------------------------------------------------------------- Schedule 2
City of American Canyon
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
443
125
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net(Expense)Revenue:

Governmental activities (7,980,663) $ (19,734,349) $ (16,952,721) $ (18,447,012) $ (6,997,757) $ (24,200,406) $ (25,203,264) $ (17,429,328) $ (22,102,283) $ (28,826,152) $ Business-type activities 3,169,778 (3,414,199) 1,949,972 2,236,033 4,737,266 1,331,049 1,147,920 2,542,376 2,265,760 (506,472)Total City government $ (23,148,548 (4,810,885) $ (15,002,749 ) $ (16,210,979 ) $ (2,260,491) ) $ (22,869,357 $ (24,055,344 ) $ (14,886,952 ) $ (19,836,523 ) $ (29,332,624 ) $ ) General Revenues and Other Changes in in Net Position:Governmental activities:

Taxes:

Property taxes 10,599,981 $ 11,480,330 $ 12,317,143 $ 12,738,881 $ 13,840,597 $ 15,084,618 $ 15,862,655 $ 16,156,774 $ 17,264,929 $ 18,218,818 $ Sales taxes 2,294,150 2,358,219 2,589,452 2,301,445 2,800,575 4,222,888 3,891,032 4,417,552 5,000,961 7,863,107Other taxes 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 3,480,013 Investment earnings 227,702 272,849 372,728 (1,047) 15,200 1,172,806 1,353,014 (75,937) (1,303,678) 558,488Miscellaneous 485,625 300,765 524,995 543,725 616,199 568,578 777,427 831,482 524,021 1,051,888Transfers 1,702,165 994,725 (266,772) 868,412 (15,450) 605,473 1,396,387 2,066,071 2,225,797 2,735,392 Total governmental activities 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 33,907,706Business-type activities Investment earnings and other 755,294 617,971 630,994 392,925 613,734 816,278 753,975 1,493,566 (77,688) 650,946Other 300,942Transfers (1,702,165) (944,725) 266,772 (868,412) 15,450 (605,473) (1,396,387) (2,066,071) (2,225,797) (2,735,392) Total business-type activities (946,871) (326,754) 897,766 (475,487) 629,184 210,805 (642,412) (572,505) (2,303,485) (1,783,504)Total City government $ 18,082,240 17,148,376 $ 19,511,949 $ 19,052,127 $ 21,084,031 $ 25,044,980 $ 25,180,473 $ 25,137,287 $ 24,637,055 $ 32,124,202 $ Change in net position:Governmental activities 10,114,584 $ (1,325,355) $ 1,661,462 $ 1,080,602 $ 13,457,090 $ 633,769 $ 619,621 $ 8,280,464 $ 4,838,257 $ 5,081,554 $ Business-type activities 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) (2,289,976)Total City government $ (5,201,518) 12,337,491 $ 4,509,200 $ 2,841,148 $ 18,823,540 $ 2,175,623 $ 1,125,129 $ 10,250,335 $ 4,800,532 $ 2,791,578 $ Data Source: City of American Canyon Annual Comprehensive Financial Report. ---------------------------------------------------------------------------------------------------------- Prior Years ------------------------------------------------------------------------------------------------------- Schedule 2
City of American Canyon
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
444
126
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
2023 $ 1, 475,315 $ 7, 185,906 $ 1, 915,030 $ 4, 000,000 $ 15, 724,240 $ - 300,491 $ 17, $ 11, 406,486 $ 1, 687,788 $ 3, 392,733 $ - 912,325 $ (1, $ - 983,835) $ 32, $ 415,497 2022 442,414 7, 861,278 1, 000,440 3, 000,000 12, 282,423 586,555 - 7, 17,977,708 1, 151,467 4, 267,279 238,734 - (944,846) - 29,690,342 -
2021 438,510 6, 528,861 1, 387,027 3, 000,000 12, 850,226 204,624 - 7, 15,096,146 1, 996,953 4, 285,478 776,137 - (628,984) - 28,525,730 -
2020 433,239 6, 329,693 1, 155,254 2, 222,691 10, 650,256 16,317 791,133 11,538,950 9,786,968 1,125,743 4,684,889 - (462,069) - 26,690,798 -
2019 426,935 6, 350,225 1, 021,464 2, 222,691 10, 337,950 359,265 - 11,801,060 7,808,693 - 5,871,283 - (1,008,280) (213,953) 24,258,8032018 563,295 1, 115,106 1, 903,925 4, 222,500 8, 752,357 688 557,183 3, 7, 420,345 - 813,712 5, - 974,310 (1, ( 811,260) 15, 260,895) 136,900 2017 687,237 6, 141,751 1, 117,954 201,941 8, 215,304 688 364,187 2, 4, 456,754 1, 869,873 3, 347,000 - 848,526 ( (1, 594,550) 10, 277,506) 650,785 2016 909,462 89,269 5, 1, 859,953 1, 491,026 9, 548,892 688 898,602 2, 5, 393,720 1, 096,773 3, 347,000 459,116 ( 552,760 ( 820,055) 11, 113,358) 916,644 2015 2,644,665 75,883 1,476,370 6, 777,418 11, 107,104 081,440 2, 589,041 5, 390,604 1, 876,113 2, 347,000 - 815,904 (1, (1, 272,732) 10, 335,082) 410,848 2014 2,467,641 69,535 1,461,807 5, 872,295 10, 970,052 841,330 2, 553,448 6, 235,092 1, 088,807 2, 347,000 - 411,746 (1, (1, 143,857) 10, 422,675) 069,561 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. --------------------- Prior Years ---------------------- --
Restricted Assigned Unassigned
Schedule 3
City of American Canyon
Fund Balances, Governmental Funds
Last Ten Fiscal Years
General Fund All Other Governmental Funds
445
127
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues:

Taxes 15,992 $ 17,896 $ 22,553 $ 19,242 $ 20,381 $ 30,520 $ 22,705 $ 22,656 $ 25,774 $ 29,415 $ Special assessments 455 471 488 550 583 581 638 668 665 652 Fines and forfeits 120 112 95 98 91 151 65 73 101 156
Licenses and permits 337 446 455 460 763 428 619 585 762 1,070 Intergovernmental 1,280 874 3,049 1,689 2,441 3,061 1,834 4,848 5,135 2,442 Charges for services 2,025 4,496 3,572 4,913 8,669 3,197 4,672 3,848 4,656 5,920 Other revenues 1,179 1,022 1,275 851 1,151 2,563 2,353 1,439 ( 2,258 281) Total revenues 21,389 25,317 31,487 27,803 34,079 40,501 32,886 34,117 36,812 41,913 Expenditures:

General government 4,066 5,064 5,111 5,237 5,084 5,645 5,648 5,312 6,773 7,654 Public safety 9,554 9,734 10,731 11,063 12,043 12,362 12,930 13,800 14,802 15,403 Comm. Dev. and Public Works 5,496 6,597 5,453 7,619 5,446 6,482 6,753 4,432 6,016 9,300 Parks and Recreation 1,192 2,202 2,665 3,615 3,445 3,215 1,847 2,809 2,720 3,071 Principal 537 560 583 606 628 583 538 4,598 1,270 143
Interest 394 373 314 291 268 243 222 157 959 147
Debt issuance costs - 158
Capital outlay 2,277 1,200 5,260 3,040 2,099 1,670 3,458 7,022 4,961 5,334 Total expenditures 23,516 25,730 30,117 31,471 29,013 30,200 31,396 38,288 37,501 41,052 Excess of revenues
over(under)
expenditures (2,127) ( 1,370 413) (3, 5,066 668) 10,301 1,490 (4, ( 171) 862 689) Other Financing
Sources(Uses)
Proceeds from borrowing - - - - - - - 5,399 - 1,842
Transfers in 5,447 3,742 9,050 5,403 4,289 5,207 5,973 9,873 7,441 9,258 Transfers out (3,745) (2, (10, 747) (4,535) 097) (4, (4, 676) (4, 601) (7, 577) (5, 875) (6, 215) 523) Other Sources 12
Sale of Assets 24 - - - - 18 - 10 10
Total other financing
Sources(Uses) 1,726 995 (1, 868 047) ( 623 387) 1,396 7,419 2,236 4,577 Net change in fund
balances (401) $ 581 $ 323 $ (2, $ 4,679 800) $ 10,924 $ 2,886 $ 3,248 $ 1,547 $ 5,439 $ Debt service as a
percentage of noncapital
expenditures 4.4% 3.8% 3.6% 3.2% 3.3% 2.9% 0.0% 15.7% 6.9% 0.8% Data Source: City of American Canyon Annual Comprehensive Financial Report. --------------------------------------------------------------------- Prior Years --------------------------------------------------------------- Schedule 4
City of American Canyon
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(In Rounded Thousands of Dollars)
(Modified accrual basis of accounting)
128
446
Fiscal
Year Property Tax
Transient
Occupancy
Tax Franchise Tax
Cardroom
Admission Tax
Fire
Assessment
Fee Total
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
2022-2023 17,843 1,574 1,031 337 739 21,524
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
447
Fiscal
Year Residential Commercial Industrial Vacant Land SBE Nonunitary Possessory Int. Unsecured Other Total Total Direct Rate 2013-2014 1,398,763 $ $ 404,835 144,912 $ 63,139 $ 42 $ 16,449 $ $ 3,588 201,968 $ 2,233,696 $ 0.28% 2014-2015 1,541,948 406,322 142,808 65,143 42 16,912 4,358 206,535 2,384,068 0.28%2015-2016 1,724,766 413,039 143,476 59,632 42 17,265 14,027 196,671 2,568,918 0.28%2016-2017 1,806,564 462,896 162,450 72,072 42 18,507 14,217 209,045 2,745,793 0.28%2017-2018 1,952,312 518,566 179,425 61,512 42 18,909 4,457 176,326 2,911,549 0.27%2018-2019 2,072,127 548,337 191,160 62,889 269 19,337 4,492 209,319 3,107,929 0.27%2019-2020 2,158,339 624,597 196,080 66,973 269 20,075 4,584 252,546 3,323,463 0.27%2020-2021 2,219,659 654,200 207,421 76,869 269 21,107 83 229,837 3,409,449 0.27%2021-2022 2,306,148 752,961 214,950 45,555 27,769 21,211 87 230,824 3,599,505 0.27% 2022-2023 2,451,935 854,546 220,492 56,068 301 21,654 87 234,864 3,839,947 0.26% 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 pruchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currenlty 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)
448
130
Agency 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Basic Levy1 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.00 % Napa College 0.027 0.026 0.026 0.025 0.024 0.024 0.021 0.019 0.018 0.017Napa Valey Unified School District 0.072 0.069 0.063 0.114 0.102 0.098 0.090 0.090 0.088 0.084Total Direct & Overlapping2 Tax Rates 0.099 0.095 0.089 0.140 0.126 0.122 0.110 0.111 0.106 0.101 City's Share of 1% Levy per Prop 133 0.296 0.296 0.296 0.296 0.296 0.292 0.292 0.292 0.292 0.292 Total Direct Rate4 0.276 0.276 0.276 0.276 0.274 0.275 0.271 0.271 0.267 0.265Notes:
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 addtion 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 2013/14 - 2022/23 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)
449
131
Parcels Revenue
% of
Revenue Parcels Revenue
% of
Revenue Value
% of
Revenue
Coca Cola Company 1 176,174 $ 20.29% 176,174 $ 1.14%
Unsecured American Canyon Gen Fund
SDG Hanna Court 411 LLC 2 159,450 $ 1.09% 159,450 1.03% Industrial American Canyon Gen Fund
SRI Napa LLC ET AL 1 156,775 1.07% 156,775 1.01%
Residential American Canyon Gen Fund
DWF IV NLP II 6 144,394 0.99% 144,394 0.93%
Industrial American Canyon Gen Fund
RAR2 Napa Logistics Park LLC 1 132,103 0.91% 132,103 0.85% Industrial American Canyon Gen Fund
Biagi and Associates LLC 1 126,124 0.86% 1 2,761 0.32% 128,885 0.83% Industrial American Canyon Gen Fund
Mezzetta 125 LP 1 119,672 0.82% 119,672 0.77%
Industrial American Canyon Gen Fund
SDG Commerce 330 LLC 1 119,550 0.82% 119,550 0.77%
Industrial American Canyon Gen Fund
Sutter Home Winery 2 107,914 0.74% 107,914 0.70%
Industrial American Canyon Gen Fund
Barry Callebaut USA LLC 1 103,461 11.91% 103,461 0.67%
Unsecured American Canyon Gen Fund
Top Ten Totals 15 1,065,982 7.30% 3 282,396 32.52% 1,348,378 8.70% City Totals 14,593,410 $ 868,358 $ 15,461,768 $
*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 2022/23 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
2022/23 Top Ten Property Taxpayers
Primary Use & Primary
Agency
Secured
Based on Property Tax Revenue
450
132
Parcels Revenue
% of
Revenue Parcels Revenue
% of
Revenue Value
% of
Revenue
1) Coca Cola Company 1 64,338 $ 0.76% 2 227,320 $ 28.79% 291,658 $ 3.16% Unsecured American Canyon Gen Fund
2) SDG Hanna Court 411 LLC 2 136,802 1.62% 136,802 1.48% Industrial American Canyon Gen Fund
3) Biagi and Associates 1 108,578 1.29% 1 1,239 0.16% 109,817 1.19% Industrial American Canyon Gen Fund
4) Sutter Home Winery INC 2 99,627 1.18% 99,627 1.08%
Industrial American Canyon Gen Fund
5) 5500 Eucalyptus Drive Apt Inv. 1 91,114 1.08% 91,114 0.99% Residential American Canyon Gen Fund
6) Broadstone HC California LLC 2 81,366 0.97% 81,366 0.88% Industrial American Canyon Gen Fund
7) Barry Callebaut USA LLC 1 68,765 8.71% 68,765 0.75%
Unsecured American Canyon Gen Fund
8) Walmart 1 61,138 0.73% 1 4,763 0.60% 65,901 0.72%
Commercial American Canyon Gen Fund
9) 125 Mezzetta Court INC 1 62,843 0.75% 62,843 0.68%
Industrial American Canyon Gen Fund
10) Napa Junction Retail LLC 6 46,695 0.55% 46,627 0.51% Commercial American Canyon Gen Fund
Top Ten Totals 17 752,501 8.93% 5 302,087 38.26% 1,054,520 11.44% City Totals 8,426,453 $ 789,559 $ 9,216,012 $
*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 2013/14 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 7
City of American Canyon
2013/14 Top Ten Property Taxpayers
Based on Property Tax Revenue
Owner
Secured Unsecured Combined
Primary Use & Primary
Agency
451
133
Fiscal Year Taxes Levied Percentage
Ended For The of
June 30 Fiscal Year Amount Levy
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%
2023 18,161,028 18,161,028 100%
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
452
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 Subscriptions Obligations Other Loans Debt Income Capita 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 - 4,769 1,928 12,214 1.67% 587
2022 - - 802 4,872 - 4,233 1,155 11,062 1.54% 511
2023 - - 761 7,467 233 4,014 360 12,835 1.56% 602
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.

Data Source: City of American Canyon Annual Comprehensive Financial Report. -------------------- Prior Years ---------------------- Governmental Activities
Schedule 10
City of American Canyon
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
(Dollars in Thousands except for Per Capita)
135
453
Percentage of
General Lease Actual Taxable
Fiscal Obligation Revenue Value of Per
Year Bonds Bonds Total Property Capita
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% -
2023 - - - 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
454
2022-23 Assessed Valuation: $3,839,946,883
Total Debt City's Share of
6/30/2023 % Applicable (1) Debt 6/30/2023
Napa Joint Community College District 69,617,723 $ 7.798% 5,428,790 $ Napa Valley Unified School District 458,549,855 11.678% 53,549,452 American Canyon Green Island Road Community Facilities District 100.00% 5,000,000 5,000,000 CSCDA Watson Ranch Community Facilities District 6,595,000 100.00% 6,595,000 City of American Canyon 1915 Act Bonds 12,665,500 100.00% 12,665,500 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 83,238,742 $
Napa County Certificates of Participation 1,840,000 $ 7.868% 144,771 $ Napa County Board of Education Certificate of Participation 7.868% 895,772 11,385,000 Napa Valley Unified School District Certificates of Participation 11.678% 229,473 1,965,000 City of American Canyon Facilities Loan Financing 100.00% 8,461,365 8,461,365 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 9,731,381 $ TOTAL DIRECT DEBT 8,461,365
TOTAL OVERLAPPING DEBT 84,508,758
COMBINED TOTAL DEBT $ (2) 92,970,123
Ratios to Assessed Valuation:

Total Direct Debt ($8,461,365) 0.22%
Total Overlapping Tax and Assessment Debt. 2.20%
Combined Total Debt 2.49%
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 determinig 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, 2023
137
455
General Net
Fiscal Assessed Bonded Legal Debt Debt
Year Value Debt Limit Debt Margin Margin
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%
2023 3,924,037,523 147,151,407 - 147,151,407 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.

Schedule 13
City of American Canyon
Computation of Legal Debt Margin
Last Ten Fiscal Years
----------------------- Prior Years --------------------- 138
456
Special Capital
Fiscal Assessment Impact
Year Collections Fees Principal Interest Coverage
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
2023 2,328,853 - 993,400 427,218 1.64
Water Capital Less Net
Service Impact Operating Available
Revenues Fees Expenses Revenue Principal Interest Coverage 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 13,415 72.39 2022 8,431,611 1,252,878 7,023,852 2,660,637 70,382 11,697 32.42 2023 9,294,994 332,951 7,597,455 2,030,490 72,141 10,810 24.48 Wastewater Capital Less Net
Service Impact Operating Available
Revenues Fees Expenses Revenue Principal Interest Coverage 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 2023 5,447,782 235,879 3,731,797 1,951,864 722,377 19,504 2.63 Notes: Special assessment bonds are accounted for in the City's Custodial Funds.

Water and wastewater revenues include operating revenues, interest revenues, and capital impact fees.

Operating expenses exclude depreciation and amortization Data Source: City of American Canyon Annual Comprehensive Financial Report.

Schedule 14
City of American Canyon
Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service
Special Assessment Bonds
-------- Prior Years ------- -------- Prior Years ------- Debt Service
State of California Water Loan
State of California Wastewater Construction Loan
Debt Service
-------- Prior Years -------
139
457
Personal
Income Median
Fiscal (thousands Household Unemployment
Year Population of dollars) Income Rate
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 3.70% 101,792
2021 20,802 732,403 6.40% 101,792
2022 21,658 719,271 4.00% 117,846
2023 21,338 822,452 3.40% 117,846
Source: 2022-23 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. ------------------------- Prior Years -------------------- Schedule 15
City of American Canyon
Demographic and Economic Statistics
For The Last ten Fiscal Years
140
458
Percentage Percentage
Number of Total City Number of Total City
Employer Rank Employees Employment Rank Employees Employment Amazon 1 481 4.37%
NVUSD 2 358 3.25%
GL Mezetta 3 350 3.18% 3 300 5.36%
Walmart Supercenter 4 320 2.91% 1 362 6.46%
A Bright Future 5 170 1.55%
Ikea Distribution Services, Inc. 6 162 1.47%
Barry Callebaut 7 146 1.33%
Safeway 8 141 1.28% 5 103 1.84%
Napa Valley Casino 9 104 0.95%
Western Wine Services 10 103 0.94%
Sutter Home Winery 2 350 6.25%
Coca-Cola AmCan Beverages 4 155 2.77%
Vinpak, Inc. 6 100 1.79%
Biagi Bros. 7 77 1.38%
City of American Canyon 8 75 1.34%
Adobe Lumber 9 62 1.11%
Wallaby Yogurt 10 61 1.09%
Data Source: Business License
2014
Schedule 16
City of American Canyon
Principal Employers (Ten Largest)
2023
Calendar Year 2023 vs Calendar Year 2014
141
459
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 2.55 2.55 3.50 2.50 2.50 3.00 3.00 3.00 3.00 City Clerk 1.40 1.65 1.65 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Neighborhood Programs 1.00 1.00 - - -
Communications 1.00 1.00 1.00
Human Resources 2.20 2.00 2.00 1.00 2.00 2.00 2.00
Internal Service:

Information Systems 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Finance
Human Resources 1.50 2.20 2.20 - - - - - - -
Finance 4.60 4.30 4.80 4.80 4.50 4.10 4.10 4.10 4.10 3.15 Information Systems 0.20 - - - - - - - - -
Utility Billing 3.20 3.40 3.40 3.40 3.40 3.80 3.80 3.80 3.80 4.75 Public safety:

Police 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.00 2.00 2.00 Non Departmental 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.00 1.00 1.00 Community Development:

Planning 1.60 3.25 3.25 3.25 4.25 2.75 2.75 2.45 2.40 2.20 Building and Safety 3.25 3.25 4.25 4.25 3.75 3.65 3.65 2.95 3.00 2.70 Economic Development 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 - - - - - 0.00 0.00 0.00 -
Affordable Housing 0.25 0.10 0.10 - - - - - - -
Parks and Recreation
Park Maintenance 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 2.00 Recreation Programs 2.80 1.80 2.80 2.80 3.10 3.10 4.30 4.30 4.00 4.00 Aquatics Programs 2.30 1.60 1.60 1.50 1.90 1.90 1.90 1.90 1.60 1.50 Neighborhood Programs 1.00 - - - - -
Facility Rentals 0.30 0.30 0.30 0.30 0.00 0.50
Open Space 0.50
Public Works:

Administration 3.90 3.50 3.50 3.50 3.50 3.50 3.00 2.00 2.00 2.00 Capital Projects 1.60 3.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 4.00 Street Maintenance 3.45 2.90 3.30 3.30 4.00 3.95 3.95 2.70 0.00 2.50 Storm Drain 1.95 2.00 2.60 1.60 1.90 2.35 2.35 3.40 0.70 2.50 Parks Maintenance 5.40
Fleet Operations 1.10 - - - - - - -
Ctiy Engineer 1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.50 1.00 Maintenance and Utilities
Maintenance & Utilities Admin 3.00 3.00 3.40
Streets Maintenance 2.70 2.70
Maintenance & Utilities Storm Drian 2.71 3.00
Parks Maintenance 5.40 5.40 5.70
Water:

Treatment and Distribution 9.05 9.08 10.08 11.25 11.55 11.25 11.75 11.25 11.25 11.25 Wastewater:

Collection and Treatment 12.00 12.23 9.73 9.40 11.10 11.25 10.75 9.25 9.25 9.25 Storm Water Quality 0.45 - - - - - - - - -
Solid Waste 0.35 0.35 3.35 3.35 3.35 3.10 3.10 2.30 3.00 3.90 Recycled Water:

Treatment and Distribution 0.30
Internal Service:

Building Maintenance 1.00 1.00 1.00 1.00 1.05 1.05 1.05 1.05 1.20 Fleet Operations 1.10 1.10 1.10 1.10 1.05 1.05 1.05 1.05 1.20 Totals 73.30 77.50 84.00 86.50 89.00 88.00 88.00 90.41 84.00 85.70 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
460
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:

Physical arrest 790 471 569 493 282 460 515 504 517 418 Traffic violations 1,336 971 886 1,189 1,204 635 601 696 1,776 1,064 Fire:

Emergency Responses 1,449 1,627 1,615 1,802 1,744 1,709 1,725 1,764 1,775 1,973 Structure Fires 6 17 20 20 21 19 71 80 40 40
Fire Loss (Thousand $) - - - - - - - - -
Fire Engines 6 6 6 6 8 8 8 8 8 8
Inspections 199 229 216 393 382 325 292 179 154 211
Construction Inspection 50 44 78 100 97 171 107 122 81 299 Planning:

Building Permits Issued 360 520 524 496 511 428 571 598 534 882 Public works:

Miles streets resurfaced - 1.75 0.15 7.00 0.69 1.00 1.14 0.35 0.50 3.10 Parks:

Community events held 37 41 46 41 40 38 14 12 27 40
Swimming pool admissions 47,720 48,222 49,142 49,302 63,110 46,594 15,277 14,250 21,756 59,398 Water:

Number of new services 493 402 418 449 427 374 324 292 332 369 Daily average water
production in MGD 3.15 2.87 2.49 2.31 2.38 2.40 2.12 2.57 2.50 2.00 Daily average water
consumption in MGD 2.89 2.39 2.08 2.02 2.19 2.08 1.64 2.19 2.15 1.90 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
--------------------------------------------------- Prior Years --------------------------------------------------- 143
461
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police:

Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 15 19 17 17 18 18 18 18 18 20
Fire:

Stations 2 2 2 2 2 2 2 2 2 2
Engines 8 8 8 8 9 8 8 8 8 8
Public works:

Miles of streets 38.1 38.1 38.1 38.1 38.1 38.1 52.3 112. 112. 0 114. 5 0 Streetlights 1,233 1,233 1,233 1,233 1,233 1,233 1,381 1,397 1,397 1,429 Traffic signals 4 4 4 4 4 4 6 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 2.6
Number of services billed 5,593 5,594 5,621 5,654 5,646 5,595 5,693 5,724 5,734 5,786 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 4,983 5,004 5,016 5,012 4,999 5,050 5,006 5,009 5,022 5,052 Maximum plant capacity
in million gallons 5 5 5 5 5 5 5 5 5 5
Recycled Water:

Miles of pipelines added - - 0 - - - 0.5 1.1
Number of services billed 15 20 30 46 43 30 48 62 46 46 Storage capacity
in million gallons 1 2.50 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
--------------------------------------------------- Prior Years --------------------------------------------------- 144
462
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, 2023, 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 posted 30 adjustments and closing entries to report the City’s activity in accordance with Generally Accepted Accounting Principles. 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:
463
To the City Council and Management
City of American Canyon

Allowance for Uncollectible Utility Accounts
The City currently has $193,000 recorded as allowances for uncollectible water and wastewater accounts.

The City should consider placing liens on past due accounts to make collection more likely and reduce the need for such a large allowance for uncollectible accounts.

Capital Assets
Ideally general ledger account numbers and the capital assets detail list for governmental and business type activities should be in order of appearance in the footnote with subcategories grouped into totals used in the footnote. Although we have noted improvement in the capital asset detail list, it is still difficult to reconcile capital assets to the categories reported in the financial statements. For example, the first category reported in the capital asset footnote is land while the first asset on the capital asset detail list for each fund type is a building account and land appears in the middle of the detail list. This results in the need to scroll through a detail list that is thousands of lines long to find individual account totals that are not in order of how reported. We recommend the City review the grouping capabilities of the capital asset software and add subtotals that match the order and category names used in the capital asset footnote.

Some projects reported as construction in progress have not had activity for many years. The City began analyzing these projects in fiscal year 2023 and wrote-off projects that did not meet the criteria for capitalization. We recommend the City analyze the remining amounts to determine whether capitalized or abandoned and adjust the detail list accordingly.

We noted a difference between capital outlay expenditures and additions to capital assets when we began the audit. As part of the yearly closing process, the City should review the transactions in the capital outlay accounts to ensure additions are recorded as capital outlay expense. If transactions do not meet the criteria for capitalization, they should be transferred to another expenditure account.

It may be useful to reconcile capital outlay expenditures and to update the capital asset detail list throughout the year rather than analyzing all transactions at year-end when preparing for the audit.

Pension and OPEB Accounts
We reported differences between the OPEB account balance summary prepared by the City’s accounting consultant and OPEB valuations that resulted in an audit adjustment. We recommend the City prepare a summary that combines the deferred outflows, liability, deferred inflows and pension/OPEB expense for the City’s three pension plans and two OPEB plans and reconciles to the combined balances reported in each City fund in the future to provide consolidated check figures for balances recorded.

Bank Reconciliation
We recommend the City prepare a combined cash and investments reconciliation with each account in a column and reconciling items in rows that reconciles to total combined governmental activity, businesstype activity and fiduciary fund cash and investments accounts. This would simplify the reconciliation of cash and investments to the balance sheet and footnotes during the audit. Many city clients prepare a similar reconciliation. We were informed last year that the City is waiting until after their accounting system is upgraded before implementing this suggestion.
464
To the City Council and Management
City of American Canyon

Compensated Absences
We noted that 13 (6 General and 7 Fire) employees exceeded the maximum accrual of 320 hours in the calculation for compensated absences. We recommend that the City review the maximum accrual of hours for each employee prior to preparing the closing entry for compensated absences.

Advances
We recommend the City formalize the terms of the interfund advances in written agreements approved by the City Council that document the maturity date, interest rate and repayment provisions. * * * * *
We would like to take this opportunity to acknowledge the courtesy and assistance extended to us during the course of the audit. This communication is intended solely for the information and use of management, the City Council and others within the organization and is not intended to be, and should not be, us2023 Ded by anyone other than these specified parties.

December 28, 2023
465
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728

GOVERNANCE LETTER
To the City Council
City of American Canyon, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon (the City) for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated September 28, 2019. Professional standards also require that we communicate to you the following information related to our audit.

Our Responsibilities under U.S. Generally Accepted Auditing Standards As stated in our engagement letter dated September 28, 2019, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial statements. Our responsibility with respect to management’s discussion and analysis, budgetary comparison schedules for the General and major special revenue funds, schedules of the proportionate share of the net pension liability, schedules of contributions to the pension plan, schedules of contributions to the other postemployment benefits plan and schedules of funding progress of the other postemployment benefits plan, which are RSI, which supplement the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI will not be audited and, because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance, we will not express an opinion or provide any assurance on the RSI.

We have been engaged to report on the combining and individual fund financial statements which accompany the financial statements but are not RSI. Our responsibility for this supplementary information, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

We have not been engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Our responsibility with respect to this other information in documents containing the audited financial statements and auditor’s report does not extend beyond the 466
To the City Council

financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information will not be audited and we will not express an opinion or provide any assurance on it.

Planned Scope, Timing of the Audit, Significant Risks, and Other An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involves judgment about the number of transactions to be examined and the areas to be tested.

Our audit included obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We generally communicate our significant findings at the conclusion of the audit. However, some matters could be communicated sooner, particularly if significant difficulties were encountered during the audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a modified opinion. We also communicate any internal control related matters that are required to be communicated under professional standards.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note A to the financial statements. The City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. The implementation of GASB Statement No. 96 resulted in the recognition of a liability and subscription assets for subscriptions over 12 months. Notes F and G to the financial statements describe the impact of GASB Statement No. 96 on the City’s financial statements.

We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were management’s estimates of the allowance for uncollectible accounts and loans receivable, including accrued interest thereon, qualifying expenses claimed under grants, the depreciable lives used for capital assets, the liability for self-insured workers’ compensation claims, the discount rate used to discount the lease and subscription liabilities, the net pension liability and the net other postemployment benefits liability. Management has determined an allowance for uncollectible accounts and loans receivable is necessary based on estimates of collectability and estimated collateral values. The City has an administrator for the self-insurance program that develops the estimate of the incurred, but unreported claims liability. The City has actuarial calculations performed on its net pension liability and net other postemployment benefits liability. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole.

The City has recorded an allowance for doubtful accounts on most of its BEGIN program loans and its shared appreciation loans and related accrued interest of $8,081,827 because of the previous decrease in 467
To the City Council

property values and the uncertainty if repayment will be received. This allowance does not affect fund balance because these loans are offset by deferred inflows of resources.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

Net Pension Liability: The disclosure of the net pension liability in Note J to the financial statements discusses the pension liability that is reflected in the Statement of Net Position and related deferred balances as well as the assumptions that were used to determine the amounts and other required disclosures. The required supplementary information schedules also provide historical information on the pension obligation.

Net Other Postemployment Benefits (OPEB) Liability: The disclosure of the net OPEB liability in Note K to the financial statements discusses the liability that is reflected in the Statement of Net Position and related deferred balances as well as the assumptions that were used to determine the amounts and other required disclosures.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit. The number of adjustments and closing entries posted during the audit was a difficulty encountered, however.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We posted 30 audit adjustments and closing entries during the audit. The following adjustments and closing entries were posted during the audit:
 To rollfoward net position balances.
 To update the uninsured claims balance.
 To correct revenue funding sources.
 Entry to accrue Quarter 3 Measure Sales Tax.
 Non-capital expenditures balances were reclassified from capital outlay.  Additional accounts payable were recorded.
 A receivable determined to be uncollectible was written off.  The developer deposit receivable balance was updated.  Entries were posted for government-wide reporting, such as reallocation of depreciation by activity, elimination of entries for full accrual accounting, true-up of restricted net position, elimination of fund balance commitments and assignments, etc.  Reclassifications were made within the different categories of net position and fund balance.  Other reclassifications for reporting purposes.
468
To the City Council

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 28, 2023.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis, budgetary comparison schedules for the General and major special revenue funds, schedules of the proportionate share of the net pension liability, schedules of contributions to the pension plan, schedules of contributions to the other postemployment benefits plan and schedules of funding progress of the other postemployment benefits plan, which are required supplementary information (RSI) that supplements the basic financial statements.

Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund financial statements which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
469
To the City Council

* * * *
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
December 28, 2023
470
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES

APPLIED TO APPROPRIATIONS LIMIT TESTING
To the City Council
City of American Canyon, California
We have performed the procedures enumerated below to the accompanying calculation of the Appropriation Limit of the City of American Canyon (the City) for the year ended June 30, 2023. The City’s management is responsible for the Appropriations Limit calculation. The City and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the City’s calculation of the 2022/2023 appropriations limit and compared the limit and annual adjustment factors included in the calculation to the limit and annual adjustment factors that were adopted by resolution of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. We compared the methodology used to determine the cost-of-living adjustment component to Article XIIIB which states that the City may annually adjust the component for either the change in California per capita personal income or, the percentage change in the City’s assessed valuation which is attributable to non-residential new construction. We recalculated the factor based on the above information.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the methodology used to determine the population adjustment component to Article XIIIB which states that the City may annually choose to adjust the component for either the change in population in the County in which the City is located, or the change in population within the unincorporated area of the County in which the City is located. We recalculated the factor based on the above information.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Calculation to the prior year appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures. 471
To the City Council

5. We recalculated the 2022/2023 Appropriation Limit by multiplying the product of the two above factors by the 2021/2022 appropriation limit.

Finding: No exceptions were noted as a result of our procedures.

6. We compared the City’s actual revenues to the computed appropriation limit for fiscal year 2022/2023.

Finding: For the 2022/2023 fiscal year, the City’s actual revenues subject to the appropriations limit did not exceed the appropriation limit adopted by resolution of the City Council.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on Appropriations Limit calculation. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record, and its distribution is not limited.

December 28, 2023
472

APPENDIX A

CITY OF AMERICAN CANYON

APPROPRIATION LIMIT CALCULATION
Year Ended June 30, 2023

APPROPRIATION LIMIT
ADOPTED BY CITY:

Recorded in Final 2022/2023 Budget 22,461,800 $

APPROPRIATION LIMIT
COMPUTATION PER REVIEW:
2021/2022 Appropriation Limit 20,796,037 $
Cost of living factor:

Change in California per capita income 1.0755
Population Adjustment Factor:

Population change in City of American Canyon 1.0043
Auditor computed limitation 22,461,800
Variance $ 0
473
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES

APPLIED TO APPROPRIATIONS LIMIT TESTING
To the Fire Protection District Board
City of American Canyon Fire Protection District
City of American Canyon, California
We have performed the procedures enumerated below to the accompanying calculation of the Appropriation Limit of the City of American Canyon Fire Protection District (the District) for the year ended June 30, 2023. The District’s management is responsible for the Appropriations Limit calculation.

The District and the League of California Cities (as presented in the publication entitled Agreed-Upon Procedures applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose to assist the District in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the District’s calculation of the 2022/2023 appropriations limit and compared the limit and annual adjustment factors included in the calculation to the limit and annual adjustment factors that were adopted by resolution of the Fire Protection District Board.

Finding: No exceptions were noted as a result of our procedures.

2. We compared the methodology used to determine the cost-of-living adjustment component to Article XIIIB which states that the District may annually adjust the component for either the change in California per capita personal income or, the percentage change in the District’s assessed valuation which is attributable to non-residential new construction. We recalculated the factor based on the above information.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the methodology used to determine the population adjustment component to Article XIIIB which states that the District may annually choose to adjust the component for either the change in population in the County in which the District is located, or the change in population within the unincorporated area of the County in which the District is located. We recalculated the factor based on the above information.

Finding: No exceptions were noted as a result of our procedures. 474
City Council
City of American Canyon

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Calculation to the prior year appropriations limit adopted by the Fire Protection District Board for the prior year.

Finding: No exceptions were noted as a result of our procedures.

5. We recalculated the 2022/2023 Appropriation Limit by multiplying the product of the two above factors by the 2021/2022 appropriation limit.

Finding: No exceptions were noted as a result of our procedures.

6. We compared the District’s actual revenues to the computed appropriation limit for fiscal year 2022/2023.

Finding: For the 2022/2023 fiscal year, the District’s actual revenues subject to the appropriations limit did not exceed the appropriation limit adopted by resolution of the Fire Protection District Board.

We were engaged by the District to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on Appropriations Limit Calculation. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the Appropriations Limit for the base year, as defined by Article XIII-B of the California Constitution.

We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

December 28, 2023
475

APPENDIX A

CITY OF AMERICAN CANYON FIRE PROTECTION DISTRICT

APPROPRIATION LIMIT CALCULATION
Year Ended June 30, 2023

APPROPRIATION LIMIT
ADOPTED:

Recorded in Final 2022/2023 Budget 15,025,027 $

APPROPRIATION LIMIT
COMPUTATION PER REVIEW:
2021/2022 Appropriation Limit 13,910,774 $
Cost of living factor:

Change in California per capita income 1.0755
Population Adjustment Factor:

Population change in City of American Canyon 1.0043
Auditor computed limitation 15,025,027
Variance $ 0
476

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

MANAGEMENT AND STAFF ORAL REPORTS
ITEM NUMBER: 11.

TITLE
Parks and Community Services Commission Mid-Year Update

RECOMMENDATION
Receive an oral update regarding the Parks and Community Services Commission's FY2024/25 Work Plan.

CONTACT
Alexandra Ikeda, Parks and Recreation Director

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Organizational Effectiveness: "Deliver exemplary government services."

ENVIRONMENTAL REVIEW
None
ATTACHMENTS:

None
477

CITY COUNCIL AGENDA
JANUARY 16, 2024

STAFF REPORT

MANAGEMENT AND STAFF ORAL REPORTS
ITEM NUMBER: 12.

TITLE
Maintenance and Utilities Department, Sewer/Wastewater Division Update

RECOMMENDATION
Receive a Presenta+on on Maintenance and U+li+es Department, Sewer/Wastewater Division Update.

CONTACT
Jay Atkinson, Wastewater Operations Manager

BACKGROUND & ANALYSIS
The Maintenance and U+li+es Department is responsible for the treatment and distribu+on of drinking water; sewer collec+ons, wastewater treatment; compliance with all environmental regula+ons related to water, wastewater, stormwater, and solid waste; and management of the City’s facili+es and fleet. The City operates a Water Treatment Facility, Water Reclama+on Facility (WRF) and Corporation Yard. The WRF processes wastewater for either discharge to receiving waters or for recycled water production and distribution.

The City’s WRF was first commissioned in 2002 as one of the first Membrane Bio-Reactor (MBR) Treatment Facilities in the state of California. Its design allows for an average dry weather flow of 2.5 million gallons per day (MGD), and a peak wet weather flow of 5 MGD. Currently, serving approximately 25,000 residents, along with businesses, including large food processors and other industrial discharges. There are four MBR process trains, each consis+ng of an anoxic zone and an aerobic zone. The WRF is both a secondary and ter+ary treatment facility; secondary water is UV disinfected and discharged to the Napa River, while tertiary water is chlorinated for irrigation.

The sewer collec+ons division, which is now located at the WRF, maintains 54 miles of underground pipe, 5 pump sta+ons, lateral cleaning and sewer repairs, CCTV or video underground pipe, respond to any and every sanitary sewer overflow (SSO). The sewer collec+ons division staff assists all other divisions as needed.

ENVIRONMENTAL REVIEW
None
478
ATTACHMENTS:

1. Sewer/Wastewater Division Quarterly Update
479
Water Reclamation, Wastewater Collection & Maintenance Divisions Maintenance and Utility Division
480
Celebrating
another year of
accomplishments
and building new
relationships.
2 481
3 Water Reclamation Treatment and Production
482
Operations and
Maintenance
Activities
4 483

WRF ENERGY UPGRADE HIGH STRENGTH INDUSTRIAL WASTE UPDATE 5 484
6 WRF ENERGY UPGRADE HIGH STRENGTH INDUSTRIAL WASTE UPDATE 485
7 WRF ENERGY UPGRADE HIGH STRENGTH INDUSTRIAL WASTE UPDATE 486
Career Day for Donaldson Way Elementary
Citizens Academy
High School Career Day
8 487
9 Reducing Inflow and Infiltration at the source
Microbiologically induced corrosion in sewer environments occurs when hydrogen sulfide gas is metabolized by microbes into sulfuric acid. As a result, the integrity of the structure is compromised allowing for ground water to enter. This repair was completed on one of the least accessible locations. Total work completed in less than 1 day.
488
Collections Crew
Modifying Camera
Trailer
10 489
11 EXCITING TIMES FOR THE FUTURE OF WATER IN CA
490

I WOULD DRINK

THIS WATER
12 491

QUESTIONS
492
City Council Committee Report
Submitted
by: * Councilmember Mark Joseph
Council
Meeting
Date:
01/16/2024
Event
Date:

Event Type Committee Report
Event Title:* Napa Valley Transportation Authority (NVTA) Event Report: Attended the Agenda-setting meeting.  Our next meeting is Wednesday, January 17.  There will be a quarterly project update, and we will be acting on a contract to do the environmental review for our SR29 Corridor Project.

This is a key milestone for getting bike paths and sidewalks built along our corridor, as well as intersection improvements.

I also spent time with staff and other board members discussing the proposed revisions to Measure T, which provides a significant amount of local funding for road repairs.  The proposed changes, which will go before the voters this November, would not raise the tax rate but would allow bonding.  This ability to fund projects today rather than wait years to accumulate funding on a pay as you go (paygo) basis will help us improve our roads sooner, improve traffic flow on our major highways and provide relief for emergency situations and evacuations.

American Canyon will receive as much or more funding for our local roads as well as get much of the benefit from the regional funding projects (in particular, our SR29 Corridor project, and a grade-separated SR29/SR12 intersection).

File/Photo Upload Max file size for all uploads is 25 MB Event
Date: 2023-12-19
Event Type Committee Report
Event Title:* BCDC Bay Adapt Elected Officials Task Force Event Report: I have served on this task force since 2022.  I met via zoom for the latest session and a number of important topics were discussed.

We all gave updates on what our jurisdictions are doing (I talked about our Wetlands Restoration project, funded by Measure AA).

We also heard a report on SB272, which provides funding for State and local shoreline resiliency plans.  American Canyon should explore this funding, both to augment our current Wetlands Restoration plan, but to ensure our efforts are consistent with BCDC's regional guidelines.  Funding would allow us to update our plans (noncompetitive funding) and then we could compete for construction dollars.  The attached presentation provides more detail.

There will also be several meetings in 2024 to gather information on BCDC's draft plans and guidelines, before they are adopted in late 2024.

File/Photo Upload 2023-12-19-BayAdpat-local-electeds-regional-task-force-Presentation - excerpts.pdf 1.28MB Max file size for all uploads is 25 MB
Event
Date:

Event Type Other
Event Title:* City Activities and Events
Event Report: Attended the Visit Napa Valley/Napa Valley Tourism Corporation's annual holiday reception and rollout of the new VNV Guidebook.  Carpooled with Vice Mayor Oro.  It was fun--there's been a big turnover of staff and board members from when I was on the NVTC board!
493
I am a member of the ad hoc group of the Climate Action Committee seeking to secure funding for a 24/7 monitoring system for Greenhouse Gases (GHG) in Napa County.  We met with Congressman Thompson to brief him on the project and to ask for his support to secure some of the $6 million that may be needed.  This project was mentioned at the latest COP28 meetings, insofar as it would be one of a handful of pilot projects worldwide.

Beyond bragging rights, this project would give us real time data on GHG, rather than rely on modeling data that might not be that accurate and certainly not as frequent.  Ultimately, we will need to find private funding and public funding at both the national and local levels.

File/Photo Upload Max file size for all uploads is 25 MB Event
Date:

Event Type Community Event
Event Title:* Various Community Events and Activities
Event Report: Kiwanis:

Spent a great deal of time moving from the old pantry to our new pantry at the Napa Junction Community Center.

Very excited to be in our new home, even if it did mean many nights of aching muscles! Completed our December food distribution in the new location and had no real problems.  There were concerns that cars might spill out onto Napa Junction Road, which would have been a serious traffic jam! Attended the Board meeting and planned our upcoming Crab Feed (March 9).  We're selling tables--get yours now, before they're gone!
As the outgoing Treasurer, worked with the Benicia Kiwanis Treasurer to conduct a financial review of our books-- good news; I still know accounting!
Arts Foundation:

Attended our Holiday Reception and Membership Drive.  We had a good turnout and recruited a half dozen new members (many were former members coming back).

Attended our monthly board meeting and went over a number of upcoming projects, from our ACHS Arts & Music Fest to the Art Extravaganza and Juneteenth.

Sponsored the first "Open Mic" at our new location.  This was Clarence Mamaril's brainchild and it was a success.

We hope to host a regular program of local talent and showings of our members' artwork.

Other Community Events:

Attended the FilAm's Parol Festival.  This is growing as an event, with more decorations beings entered.

Attended the ribbon-cutting for Triumph Fitness Center.  Very big turnout.

Attended the Napa Working Family Coalition meeting.  They are exploring grant funding opportunities relative to the IRA Federal law.  One project relates to improvements at Napa HS (as part of the disadvantaged communities), but the other would help fund "de-carbonizing" low-income homes.  They are also tracking funding for SR37.  This is a positive group, but a lot of their focus is on Napa City.

Attended the regular Napa County Democratic Central Committee.  We heard a lot from our local elected officials.

File/Photo Upload Max file size for all uploads is 25 MB 494
WHAT IS SB 272?:

SEA LEVEL RISE PLANNING

AND ADAPTATION

REQUIREMENTS
• Requires “subregional shoreline resiliency plans” along the bay
• Requires BCDC to develop guidelines for
subregional plans, based on Bay Adapt
• Requires BCDC to review – and approve or deny – plans based on consistency with guidelines
• Sets timelines for guidelines and plan completion
• Prioritizes State funding for strategies and projects within approved plans
✔ Region Preparation
✔ Priorities and Funding
✔ Vision
495
SB 272 REQUIREMENTS
Minimum Requirements for SLR Resiliency
Plans: ● Best available science ● Vulnerability assessment, including at -
risk communities
● Adaptation strategies and projects ● Planning and implementation leads ● Timeline for updates ● Economic impact analysis for critical infrastructure
Our work is going above and beyond by
creating the guidelines collaboratively and
emphasizing equity and nature-based solutions
496
2024

REGIONAL SHORELINE

ADAPTATION PLAN

GUIDELINES
2021

BAY ADAPT
JOINT

PLATFORM
2020

ART BAY
AREA
2011

CLIMATE
CHANGE

POLICIES IN SF

BAY PLAN
GOOD NEWS! WE’RE ALREADY

UNDERWAY
✔ Aligned
✔ On Track
✔ Linked to Funding
25 2023 SB 272 Enacted
2025+

SUBREGIONAL PLAN

DEVELOPMENT,

ASSISTANCE &

IMPLEMENTATION
497

GOALS FOR SUBREGIONAL
PLANS
URGENT
Accelerate plan completion before 2034 deadline by
providing support and incentives.

FLEXIBLE
Support jurisdictions where they’re at and help them
meet requirements in their own unique ways.

ALIGNED
Ensure outcomes are coordinated and fit with local
plans, other sub-regional plans, and within the RSAP, and align with outer coast requirements (CCC).

EFFECTIVE
Position plans to “move the needle” on policies and
projects

ADDITIVE
Ensure plans add up to something bigger than sum of
their parts to adapt faster, better, and more equitably. 498 LOCAL FUNDING OPPORTUNITIES:

SB1
499
OPC’s SB 1 Grant Program
Launched last week!
Provide funding for coastal communities to develop consistent SLR adaptation plans and projects to build resilience to SLR along the entire coast of California and San Francisco Bay.
• Authorized via Senate Bill 1 (Atkins, 2021)
• Directs the state to provide funding to local and regional governments to prepare for SLR
• Supports requirements of SB 272 (Laird, 2023)
• SLR Criteria established as working guidelines
500
SB 1 Grant Program: SLR
Planning and Project Criteria
• Pre-planning: Community Visioning, Data
Collection, Vulnerability Assessments
• Planning: SLR Adaptation Plans, SF Bay
Shoreline Adaptation Plans, Sector Specific
Adaptation Plans
• Projects: Feasibility Studies/Design/
Construction for nature-based and hybrid
projects
Track 1: non-competitive
Track 2: competitive
501
Collaborating with BCDC to
further SB 272
• SLR Criteria includes SF Bay Shoreline Adaptation Plan criteria – reviewed by BCDC, but expected to be
updated and aligned with RSAP Guidelines
• Letter of Alignment from BCDC required for all planning proposals within jurisdiction
• BCDC staff will be involved in full proposal review
502