Agenda — Finance, Economic Development and Jobs Committee, March 25, 2024 (part 2 of 4)

CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2016.

Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10 [a]
Real Return
Years 11+ [b]
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0% (0.92%)
[a] An expected inflation of 2.00% used for this period. [b] An expected inflation of 2.92% used for this period.

Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:

Increase (Decrease)

SAFETY FIRE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2020 [a] $ 309,664,414 $ 221,004,118 $ 88,660,296 Changes Recognized for the
Measurement Period:
- Service Cost 5,209,767 - 5,209,767
- Interest on the Total
Pension Liability 21,862,120 - 21,862,120
- Changes of Benefit Terms - - -
- Differences between Expected
and Actual Experience 1,665,276 - 1,665,276
- Changes of Assumptions - - -
- Plan to Plan Resource Movement - - -
- Contributions - Employer - 9,545,170 (9,545,170)
- Contributions - Employees - 1,928,537 (1,928,537)
- Net Investment Income - 49,937,203 (49,937,203)
- Benefit Payments Including
Refund of Employee Contributions (16,341,306) (16,341,306) - - Administrative Expenses - (220,770) 220,770
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2020-21 12,395,857 44,848,834 (32,452,977) Balance at June 30, 2021 [a] $ 322,060,271 $ 265,852,952 $ 56,207,319 [a] The plan fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report. [b] During fiscal year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to post-employment benefits for participation in the State of California's agent OPEB plan.
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

SAFETY FIRE PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate +
1%
(8.15%)
Plan Net Pension
Liability $ 99,304,260 $ 56,207,319 $ 20,730,843
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2021 measurement date is 6.2 years, which is obtained by dividing the total service years of 2,826 (the sum of remaining lifetimes of active employees) by 457 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2021), the net pension liability/(asset) is $88,660,296. For the measurement period ending June 30, 2021 (the measurement date), the City incurred a pension expense/(income) of $4,128,241 for the plan.

Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.

As of June 30, 2022, the City had deferred outflows of resources related to pensions of $11,229,440 for contributions made subsequent to the measurement date (which will be recognized as a reduction of the net pension liability as of June 30, 2023), $1,192,802 for changes of assumptions, $1,583,410 for the differences between expected and actual experiences and $0 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $(384,796) f or changes in assumptions and $(1,275,075) f or differences between expected and actual experiences, and $(24,751,045) for the net difference between projected and actual earnings on pension plan investments.

Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:

Measurement Periods
Ended June 30:

Deferred Outflows/(Inflows)
of Resources
2022 $(5,676,926)
2023 $(5,918,135)
2024 $(5,801,665)
2025 $(6,560,289)
2026 $268,593
Remaining $53,718
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Safety Police Plan
Plan Description
The City’s Safety Police Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of- living adjustments, and death benefits to plan members and beneficiaries. The Safety Police Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate annual comprehensive financial report. C opies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.

Benefits Provided
The benefits provided through the CalPERS Safety Police Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety Police employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50.

Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after January 1, 2011 and before January 1, 2013 with a formula of 2.0% at age 50. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of 2% at age 57, which is a result of the PEPRA. PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the PEPRA limit of $161,969, based on 36 months at the highest rate of pay received.

Contributions and Employees Covered
Active plan members in the CalPERS Safety Police Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those employees under PEPRA (Tier III) will pay 13.25% of their salary. In addition, employees in Tier I have 8% their contribution picked-up by the City after five years of service.

Section 20814(c) of the California PERL 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. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

As of June 30, 2021 ( the measurement date), there are 399 a ctive employees and 479 i nactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2022, the employee contribution rate was 10.44 percent of annual pay, and the employer’s minimum contribution rate was 58.35 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2021 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2020 and the June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Asset Valuation Method
Fair Value of Assets. For details, see
June 30, 2018 Funding Valuation
Report.

Inflation Rate 2.50%
Salary Increases Varies by Entry Age and Services
Payroll Growth 2.75%
Investment Rate of Return 7.00%[a]
Mortality[b]
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation. [b] Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements using Society of Actuaries 90% of scale MP-2106. For more details on this table, please refer to the December 2017 experience study report.

All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study dated 2017 which was derived from data collected for the period from 1997 to 2015, including updates to salary increases, mortality and retirement rates. The 2017 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. 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 w ould most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ 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 rounded 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 long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
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Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:

Increase (Decrease)

SAFETY POLICE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2020 [a] $ 548,039,927 $ 350,390,729 $ 197,649,198 Changes Recognized for the
Measurement Period:
- Service Cost 11,343,912 - 11,343,912
- Interest on the Total
Pension Liability 39,064,145 - 39,064,145
- Changes of Benefit Terms - - -
- Differences between Expected
and Actual Experience 6,572,677 - 6,572,677
- Changes in Assumptions - - -
- Plan to Plan Resource Movement - - -
- Contributions - Employer - 21,113,667 (21,113,667)
- Contributions -Employees - 4,277,875 (4,277,875)
- Net Investment Income - 80,187,665 (80,187,665)
- Benefit Payments Including
Refunds of Employee Contributions (27,865,756) (27,865,756) - - Administrative Expenses - (350,019) 350,019
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2020-21 29,114,978 77,363,432 (48,248,454) Balance at June 30, 2021 [a] $ 577,154,905 $ 427,754,161 $ 149,400,744 [a] The plan fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report. [b] During fiscal year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to post-employment benefits for participation in the State of California's agent OPEB plan.
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

SAFETY POLICE PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15 %)
Discount Rate +
1%
(8.15%)
Plan Net Pension
Liability $ 231,457,264 $ 149,400,739 $ 82,558,751
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2020 measurement date is 5.6 years, which is obtained by dividing the total service years of 5,526 (the sum of remaining lifetimes of active employees) by 982 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2021), the net pension liability/(asset) is $197,649,198. For the measurement period ending June 30, 2021 (the measurement date), the City incurred a pension expense/(income) of $15,485,637 for the plan.

As of June 30, 2022, the City had deferred outflows of resources related to pensions of $24,757,914 for contributions made subsequent to the measurement date (which will be recognized as a reduction of the net pension liability as of June 30, 2023), $3,125,125 for changes of assumptions, $6,322,304 for differences between expected and actual experiences and $0 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $(706,797) for changes in assumptions, $(1,033,136) for differences between expected and actual experiences, and $(40,022,464) for the net difference between projected and actual earnings on pension plan investments. 96

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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:

Measurement Periods
Ended June 30:

Deferred Outflows/(Inflows)
of Resources
2022 $(6,313,396)
2023 $(8,161,883)
2024 $(8,589,350)
2025 $(9,954,554)
2026 $704,217
Remaining $0
CITYWIDE PENSION PLAN TOTALS Miscellaneous
Plan
Safety Fire
Plan
Safety Police
Plan
Citywide
Total
Net Pension Liability $109,684,473 $ 56,207,319 $149,400,744 $315,292,536 Deferred Outflows of Resources
Contributions Made Subsequent to Measurement Date 23,570,997 11,229,440 24,757,914 59,558,351 Differences Between Expected and
Actual Experiences 2,903,956 1,583,410 6,322,304 10,809,670 Changes of Assumptions - 1,192,802 3,125,125 4,317,927
Total Deferred Outflows of Resources $ 26,474,953 $ 14,005,652 $ 34,205,343 $ 74,685,948 Deferred Inflows of Resources
Differences Between Expected and
Actual Experience $ (674,039) $ (1,275,075) $ (1,033,136) $ (2,982,250) Net Differences Between Projected and
Actual Earnings (48,905,459) (24,751,045) (40,022,464) (113,678,968) Changes of Assumptions - (384,796) (706,797) (1,091,593) Total Deferred Inflows of Resources $ (49,579,498) $ (26,410,916) $ (41,762,397) $(117,752,811) Pension Liability Expense $ 2,542,046 $ 4,128,241 $ 15,485,637 $ 22,155,924 97

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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Single Employer OPEB
Plan description: In addition to the employee retirement benefits described in Note 16, the City provides a single-employer Post-Employment Retiree Medical Benefit Plan in accordance with a resolution approved by City Council. Two primary plans exist. All employees with a retirement date prior to January 1, 1985 were eligible for benefits upon retirement. Post-1985 employees must retire with fifteen years accumulated service upon retirement to participate. The service requirement is waived for safety employees who retire with a job-related disability.

Employees hired after the dates listed below will not participate in either of the retiree health subsidy programs mentioned:

Miscellaneous Employees February 22, 2006
Management and Supervisory March 22, 2006
Fire Safety May 5, 2006
Police Safety May 24, 2006
Benefits provided: F or employees hired prior to the dates listed above, the City provides lifetime postretirement medical benefits for eligible retirees and qualified dependents with a choice of three medical options: Blue Shield PPO, Kaiser High Deductible Health Plan, and Kaiser Permanente HMO. Mental Health benefits are carved out and provided through Optum Behavioral Health. A fter reaching eligibility for Medicare, retirees are offered a choice of Blue Shield PPO, Blue Shield Medicare Advantage HMO or Kaiser Senior Advantage HMO. Retirees may also elect dental coverage but must self-pay the premiums for such coverage. Vision coverage is not offered to retirees. Retiree rates are unblended from employee rates.

Employees covered by benefit terms: At June 30, 2022 the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently
receiving benefit payments 754
Active employees 428
1,182
Contributions. The City contributes 3% of the lowest single-party rate per year of service to a maximum of 90%. If the dollar amount is greater than the premium for a retiree covered under one of the Medicare Advantage plans, the retiree receives a cash reimbursement of the difference to a maximum of $42.50 per month. The City also contributes 42% of the Blue Shield PPO for all retirees who elect the Blue Shield PPO plan, excluding Miscellaneous employees hired after April 1, 1996 and Safety employees hired after April 1, 1998. The City has approximately 428 active employees who are eligible for the same level of post-employment benefits and 754 retirees (and/or dependents) currently receiving benefits as of the actuarial dated June 30, 2022. There is not a separate, audited GAAP-basis pension report available for the Post-Employment Retiree Medical Benefit Plan.
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CITY OF BAKERSFIELD
Notes to the Financial Statements
OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.

Actuarial assumptions. The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2021. T he actuarial assumptions used in the June 30, 2021 v aluation were based on the December 2021 e xperience study performed by the CalPERS actuary derived from the data collected during fiscal years 2000 to 2019.

Data
Detailed census data, premium data and/or claim
experience, and summary plan descriptions for OPEB
are provided by the City of Bakersfield.

Actuarial Cost Method Projected Unit Credit
Asset Valuation Method Fair Value
Measurement Date June 30, 2021
Discount Rate 4.75%
Inflation Rate 2.30%
Payroll Growth 2.8%
Salary Increases
Ranges from 14.61% to 3.34% based on year of service,
including inflation.

Mortality
Based on the 2021 experience study performed by
CalPERS derived from data collected during fiscal years 2000-2019.

The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which 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 and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return, after deducting inflation, but before deducting investment expenses, used in the derivation of the long-term expected rate of return assumption are summarized in the following table:

Asset Class
Target
Allocation
Long-Term (Arithmetic)
Expected Real Rate of
Return (1)
Domestic Equity 24.34% 6.40%
Developed International Equity 4.26 7.40
Emerging Markets Equity 2.01 9.80
Core Fixed Income 65.25 1.75
Real Estate 0.83 5.10
Short-Term Money Market 3.31 1.10
Total 100%
(1) Long-term nominal rate of return less inflation of 2.3%. Municipal Bond Rate: 3.5% and 3.58% based on the 20-y ear municipal rate for the Bond Buyer 20-Bond Go Index as of June 30, 2020 and 2017, respectively.

Discount rate. The discount rate used to measure the total OPEB liability was 4.75% as of June 30, 2021 and 5.00% as of June 30, 2020. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at the rates equal to the actuarially determined contribution rates. For this purpose, only City contributions that are intended to fund benefits of current plan members and their 99

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CITY OF BAKERSFIELD
Notes to the Financial Statements
OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Net OPEB Liability (continued)
beneficiaries are included. Projected City contributions that are intended to fund the service costs of future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the OPEB Plan's assets were projected to be sufficient to make all projected OPEB payments for current plan members.

Therefore, the long-term expected rate of return on OPEB Plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability as of both June 30, 2021 and June 30, 2020.

Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(a) (b) (a) - (b)
Beginning balances $ 116,103,123 $ 79,590,815 $ 36,512,308 Changes for the year:

Service cost 1,303,741 - 1,303,741
Interest 5,765,058 - 5,765,058
Differences between expected and actual experience (10,056,063) - (10,056,063) Changes of assumptions and methods (1,005,648) - (1,005,648) Employer contributions - 6,852,674 (6,852,674)
Net investment income - 10,311,017 (10,311,017)
Benefit payments (4,263,425) (4,263,425) -
Administrative expense - (231,118) 231,118
Net changes (8,256,337) 12,669,148 (20,925,485)
Ending balance $ 107,846,786 $ 92,259,963 $ 15,586,823
Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB liability of the City as of June 30, 2021, calculated using the discount rate of 4.75%, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.75 percent) or 1-percentage point higher (6.75 percent) than the current discount rate:
1% Decrease
(3.75%)
Discount Rate
(4.75%)
1% Increase
(5.75%)
Net OPEB liability as of June 30, 2021 $ 33,360,251 $ 15,586,823 $ 1,439,176 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability of the City as of June 30, 2021, calculated using the current healthcare cost trend rates as well as what the City'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:
1% Decrease*
Current Trend
Rates* 1% Increase*
Net OPEB liability as of June 30, 2021 $ 1,162,369 $ 15,586,823 $ 33,665,748 *Current trend rates: 7.5% graded to 4.50% over 12 y ears for City "Years of Service" Formula subsidy, 7.5% graded to 4.50% over 12 years for Special 42% Contribution Non-Medicare subsidy, and 7.00% graded to 4.50% over 10 y ears for Special 42% Contribution Medicare subsidy.

OPEB Plan fiduciary net position. D etailed information about the OPEB Plan's fiduciary net position is available in the separately issued actuarial report.
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CITY OF BAKERSFIELD
Notes to the Financial Statements
OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the reporting period year ended June 30, 2020, the City recognized OPEB expense of $(12,127,334). At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Governmental Activities Business-Type Activities
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes of
assumptions $ 936,080 $ 2,825,883 $ 142,492 $ 430,163
Net difference between
projected and actual
earnings on OPEB
Plan investments - 15,695,493 - 2,389,207
Net excess of projected
over actual earnings
on OPEB Plan
investments - 5,276,019 - 803,128
City contributions
subsequent to the
measurement date 4,027,001 - 612,999 -
Total $ 4,963,081 $ 23,797,395 $ 755,491 $ 3,622,498
The deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2023 ($4,027,001 for Governm ental Activities and $612,999 for Business-Type Activities)
The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB are recognized in OPEB expenses as follows:

Fiscal Year
Ended:

Governmental
Activities
Amount
Business-Type
Activities
Amount
2023 $ (11,960,520) $ (1,707,793)
2024 (7,874,325) (1,124,342)
2025 (2,082,149) (297,302)
2026 (1,133,099) (161,791)
Thereafter - -
$ (23,050,093) $ (3,291,228)
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 18 - SPECIAL ASSESSMENT DISTRICTS
In addition to the Long-Term Obligations discussed in Note 11, the following Long-Term Obligations have been issued in the name of Special Assessment Districts or Agencies of the City. Neither the City, nor its Agencies, are obligated in any manner for the repayment of these obligations. The City acts as an agent to property owners for the collection and repayment of Special Assessment Debt.

Outstanding at
June 30, 2022
Assessment District 02-1* (Avalon/Belsera/Montara/The Woods) 125,000 Assessment District 03-1* (Brighton Place/Silver Creek II) 455,000 Assessment District 03-2* (Buena Vista Ranch/Belsera II/Monstera II/Olive Park II) 305,000 Assessment District 03-3* (Seven Oaks West III/Brighton Place) 1,030,000 Assessment District 04-1** (Countryside/The Homestead) 715,000 Assessment District 04-2** (BL/BV/ST@Allen Com) 965,000 Assessment District 04-3** (Solera/Rio Vista) 660,000
Assessment District 2020-1*** (City in the Hills) 3,181,696 Assessment District 05-3** (Liberty II/Village Green/Tesoro/Encanto) 2,070,000 Assessment District 06-1** (Etcheverry/Lin II/University Park) 1,830,000 Assessment District 07-2 (Sydney Harbour) 965,000
$ 12,301,696
*Note: These six districts were refinanced into a consolidated district (12-01) with the California Statewide Communities Development Authority (CSCDA). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates. **Note: These five districts were refinanced into a consolidated district (15-01). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates. ***Note: This district was refinanced into 2020-1. The City continues to account for the underlying obligation of the district to properly monitor the individual principal balances and various maturity dates.
102

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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT
Self-Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established a Self-Insurance Fund (an internal service fund) to account for and finance its uninsured risks of loss. Under this program, the Self-Insurance Fund provides coverage for up to $500,000 for each workers’ compensation claim and $1,000,000 for each liability claim. The City participates in a joint pow ers authority for workers’ compensation claims in excess of coverage provided by the fund up to statutory limits and participates in a joint powers authority for any excess liability claims. All funds of the City participate in the program and are charged for their share of claim expenditures. The claims liability of $71,321,000 at June 30, 2022 is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. An estimate of incurred but not reported claims has been included in the liability based on the various percentages of loss reserves.

Changes in the fund's claims liability over the last three fiscal years is shown below:

Liability
at Beginning
of Year
Current Year
Claims and
Changes in
Estimates
Claims
Payments
Liability
at End
of Year
2019-2020 $ 48,527,301 $ 21,759,156 $ 13,792,266 $ 56,494,191 2020-2021 56,494,191 13,788,121 5,730,312 64,552,000
2021-2022 64,552,000 18,287,703 11,518,703 71,321,000
Joint Powers Authority
The City has obtained excess liability coverage through the Authority for California Cities Excess Liability (ACCEL), a joint powers authority of medium-size California municipalities. ACCEL pools catastrophic general liability, automobile liability and public officials' errors and omissions losses, or purchases excess insurance, depending on market conditions. E ach member's share of pooled costs will depend on the catastrophic losses of all the members. In addition, the cost to a member city will also depend on that member's own loss experience. Entities with a consistent record of costly claims will pay more than entities with a consistent record of less serious claims activity.

In order to provide funds to pay claims, or purchase excess insurance, ACCEL collects a deposit from each member. T he deposits will be credited with investment income at the rate earned on ACCEL's investments. Based on information received from ACCEL as of June 30, 2022, the City had $2,485,469 o n deposit with ACCEL out of a total of approximately $22,897,880.

The following municipalities are also members of ACCEL: P alo Alto, Santa Barbara, Visalia, Modesto, Ontario, Santa Monica, Anaheim, Santa Cruz, Mountain View, Burbank, Monterey, and Gardena. A representative from each member city, appointed to the position by their respective city councils, serves on the Board of Directors (Board) of ACCEL. The Board is responsible for deciding the risks ACCEL will underwrite, monitoring the costs of large claims and arranging financial programs. Each member of the Board has an equal vote in matters concerning ACCEL.

As of June 30, 2022, ACCEL had no long-term debt. Included in total liabilities is an estimated retrospectively rated refund of $0. C omplete financial statements of ACCEL can be obtained at the City’s Finance Department at 1600 Truxtun Avenue, Bakersfield, CA 93301.
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT (continued)
A summary of the financial information for ACCEL at June 30, 2022 is as follows:

Total assets $ 61,198,842
Total liabilities 62,535,639
Total members' net position $ (1,336,797)
Total revenues $ 43,379,904
Total expenses 49,454,153
Net change in members' net position $ (6,074,249)
NOTE 20 - COMMITMENTS AND CONTINGENCIES
Several claims and suits have been filed against the City in the normal course of business. In the opinion of management and the City Attorney, the potential liability of the City for such claims will not have a material adverse effect on the financial statements of the City. Also, the City has certain commitments under long-term construction projects which will be funded out of future revenues.

The entire capacity of the former sanitary landfill has been used. The State has required environmental closure and capping of the City's former sanitary landfill and remediation of the adjacent burn dump. Although these two waste disposal areas are adjacent to each other, the City completed the remediation of the burn dump separately, through the State's Expedited Remedial Action Program, in 1998. The cost of remediation for the burn dump of $1.8 million was funded by the City's Refuse Service Fund and was expensed in prior fiscal years. The landfill closure was completed in May 2013 at a cost of $4.8 million. The City’s net share of this joint City/County project was approximately $3 million. Kern County reimbursed the City for the remaining $1.8 million.

The City will be required to perform post-closure monitoring and maintenance of the landfill after it is closed and capped. This will result in an ongoing annual cost of approximately $170,000. The City will be responsible for about $135,000 of these annual charges because most of these costs will be for the landfill gas management system, which is the City's responsibility.

Kern County will be responsible for reimbursing the City for the remainder. City management anticipates all closure and post- closure costs being covered by annual Refuse Service Fund revenues. These estimates of cost are subject to future adjustment for inflation or deflation, technology, or applicable laws or regulations. 104

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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 21 - ENCUMBRANCES
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded as encumbrances in order to reserve that portion of the applicable appropriation. Encumbrances outstanding as of June 30, 2022 consisted of the following:

Governmental Funds:

Major Funds:

General Fund $ 7,322,952
Transient Occupancy Taxes Fund 12,100
Community Development Block Grant Fund 4,175,038
Gas Tax & Road Fund 48,928,458
Covid Relief Fund 5,827,837
Capital Outlay Fund 32,366,811
Park Improvement Fund 2,933,400
Transportation Development Fund 8,004,605
Non-Major Funds:

State (TDA) Transportation Fund 68,334
State Safety Fund 412,843
Proprietary Funds:

Major Funds:

Wastewater Treatment Fund 2,977,354
Refuse Collection Fund 1,649,877
River & Agriculture Water Fund 240,866
Domestic Water Fund 2,653,654
General Aviation Fund 4,000
Offstreet Parking Fund 10,676
Internal Service Funds:

Self-Insurance Fund 134,336
Equipment Management Fund 15,628,895
Fiduciary Funds:

Custodial Funds:

Improvement District Fund 1,290,000
$134,642,036
105

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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 22 - CONDUIT DEBT OBLIGATIONS
The City has been associated with the issuance of various health care, residential care, mortgage, commercial and industrial development debt issues. These debt obligations were issued under provisions of State and Federal laws that explicitly state that they do not constitute any indebtedness of the City. The City’s sole involvement with these bonds was their issuance under the City’s name or the City Council’s authorization. As such, the following conduit debt obligations are not reflected in the accompanying basic financial statements:

Authorized and
Issued
Current
Outstanding at
June 30, 2022
City of Bakersfield - Cottonwood Village Housing Bond,
Series 2004 $ 5,000,000 $ 5,000,000
City of Bakersfield - Cottonwood Court Housing Bond,
Series 2004 1,950,000 1,950,000
City of Bakersfield - St. John Manor Housing Bond,
Series 2006 3,867,794 2,119,441
City of Bakersfield - Coventry Apartments Housing Bond, Series 2007M 5,300,000 3,271,193
City of Bakersfield - Catholic Healthcare West 501(c)(3) Nonprofit Bond, Series A thru L 676,250,000 240,000,000 City of Bakersfield - Descanso Place Housing Bond,
Series TT 13,000,000 1,400,000
City of Bakersfield - Bakersfield Family Apartments Housing Bond, Series 2008R 10,971,000 1,019,123
City of Bakersfield - Camellia Place Housing Bond,
Series 2009R 619,138 619,118
City of Bakersfield - Eucalyptus Village I Housing Bond, Series 2012-E1 1,295,000 1,295,000
City of Bakersfield - Eucalyptus Village II Housing Bond, Series 2012-E2 4,275,000 4,275,000
City of Bakersfield - American Baptist Homes of The West 501(c)(3) Nonprofit Bond, Series 2015 52,080,000 40,455,000 TOTAL $ 301,403,875
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CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 23 - PRIOR PERIOD ADJUSTMENTS
During the fiscal year ended June 30, 2022, the City made the following prior period adjustments to restate the net position for governmental activities related fund balance for: 1) Net Position for Governmental Activities was adjusted for transfer expenses in the Transportation Development Fund and the Gas Tax & Road Fund to correct a prior year expense, correction to the Transient Occupancy Tax Fund for revenues and expenses not recognized in fiscal year 2021 as w ell a payment adjustment that was corrected, adjustment to the Covid Relief Fund to record ARPA unearned revenue, adjustment to the Long Term Debt Fund to post unrecorded debt from the previous year, and an adjustment to the Equipment Fund to properly record capital assets 2) Correction of the Fund Balance in the Transportation Development Fund, Gas Tax Fund, Transient Occupancy Tax Fund, Covid Relief Fund as well as the Equipment Fund for reasonings explained above and 3) Correction of the Fund Balance in the Gas Tax & Road Fund to correct a prior year expense as well as the transfer of expenses to the Transportation Development Fund, and 4) Net Position for Governmental and Business Activities were adjusted to reflect an internal balance correction. See corresponding changes in statements on page 24, pages 31-32, and page 148.

Net Position Accounts
Activity
July 1, 2021
as previously
reported Adjustment
July 1, 2021,
as
restated
Net Position - Governmental Activities $ 1,309,461,737 $ (30,579,799) $ 1,278,881,938 Net Position - Business-Type Activities $ 879,675,784 (6,521,184) 873,154,600 Equipment Management Fund $ 85,153,393 $ 23,132 $ 85,176,525 Fund Balance Accounts
July 1, 2021
as previously
reported Adjustment
July 1, 2021,
as
restated
Transient Occupancy Tax Fund $ 4,841,490 $ 157,534 $ 4,999,024 Gas Tax & Road Fund $ 9,185,339 $ (1,503,022) $ 7,682,317 Covid Relief Fund $ 53,367,209 $ (37,679,079) $ 15,688,130 Transportation Development Fund $ 58,726,609 $ 1,503,022 $ 60,229,631 NOTE 24 - SUBSEQUENT EVENT
In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure through November 15, 2023 , the date the financial statements were available to be issued, and there w ere no subsequent events to disclose.
107

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108

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CITY OF BAKERSFIELD
Required Supplementary Information

BUDGETARY INFORMATION
Through the budget process, the City Council sets the direction of the City, allocates its resources and establishes its priorities.

The Annual Budget assures the efficient and effective use of the City's economic resources, as well as establishing that the highest priority objectives are accomplished. Budgets are adopted for all governmental fund types and are prepared on a basis consistent with accounting principles generally accepted in the United States of America.

The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance.

The City's budget is prepared and based on four expenditure categories: personnel, supplies and services, minor capital outlay and capital improvement programs. The first three listed are considered operational in nature and known as recurring costs.

Capital improvement projects are asset acquisitions, facilities systems, and infrastructure improvements typically over $50,000, and/or those items "outside" of the normal operational budget. These are known as one-time costs.

The City collects and records revenue and expenditures within the following categories:
 Governmental Activities
 Business-Type Activities
The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding sources are kept separate for both reporting and use of the money. The General Fund is where most City services are funded that are not required to be segregated.

The budget process begins as a team effort in January of each year, starting w ith an annual strategic planning meeting. Then the individual departments use projected revenue assumptions to prioritize and recommend the next fiscal year's objectives. The City Manager's Office and the Finance Department review all budget proposals and revenues assumptions, as well as all current financial obligations before preparing the document that is proposed to the City Council. The City Council reviews the Proposed Budget through a series of workshops, and the final adoption of the budget is normally scheduled for the second City Council meeting each June.

At the beginning of each fiscal year, certain appropriations are "carried forward" from the prior budget year. These items generally relate to either open encumbrances that exist at June 30, or capital projects that w ere budgeted in the prior fiscal year that did not progress to the encumbrance stage as of June 30. The City Manager's Office approves all carryovers that are not encumbered as of June 30 of each year.

The amounts carried forward from fiscal year ended June 30, 2021 to fiscal year ended June 30, 2022 totaled $355,008,797. 109

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
These following schedules represent budgetary comparisons for the General Fund and all major special revenue funds within the City.

Budgetary Comparison Schedule, General Fund
For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 126,069,723 $ 126,069,723 $126,069,723 $ - Revenues:

Taxes 262,145,300 268,087,004 309,702,545 41,615,541
Licenses and permits 3,280,500 3,280,500 3,043,365 (237,135) Intergovernmental 2,422,427 10,982,154 7,885,516 (3,096,638) Charges for services 27,699,350 27,961,362 32,912,842 4,951,480 Fines, forfeitures and assessments 660,000 660,000 1,204,150 544,150 Interest income (loss) 485,000 485,000 (3,566,798) (4,051,798) Contributions and donations 150,000 670,142 446,695 (223,447) Other 948,423 948,423 3,690,609 2,742,186
Transfers from other funds 3,100,000 1,100,000 1,100,000 - Amount available for appropriation $ 300,891,000 $ 314,174,585 $356,418,924 $ 42,244,339 Expenditures:

General government $ 20,160,818 $ 20,820,276 $ 17,647,992 $ 3,172,284 Public safety - Police 132,010,268 137,129,134 134,522,103 2,607,031 Public safety - Fire 50,548,482 51,422,635 51,507,722 (85,087) Public works 30,224,637 30,763,908 29,751,683 1,012,225 Recreation and parks 27,050,914 27,276,949 24,969,061 2,307,888 Development services 13,343,518 15,192,424 11,804,870 3,387,554 Economic/Community development 10,258,451 19,412,477 6,740,709 12,671,768 Non-departmental 5,928,237 13,913,054 11,647,045 2,266,009 Transfers to other funds 21,512,675 65,456,162 65,456,162 - Total charges to appropriations 311,038,000 381,387,019 354,047,347 27,339,672 Amount of resources over (under)
charges to appropriations (10,147,000) (67,212,434) 2,371,577 69,584,011 Fund balance, June 30 $ 115,922,723 $ 58,857,289 $128,441,300 $ 69,584,011 110

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Transient Occupancy Taxes Fund For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 4,999,024 $ 4,999,024 $ 4,999,024 $ - Revenues:

Taxes 8,500,000 8,500,000 11,503,778 3,003,778
Charges for services 7,179,508 7,179,508 10,673,248 3,493,740 Interest income (loss) 30,000 30,000 (189,983) (219,983) Contributions and donations 1,200,000 1,200,000 1,200,000 - Other income 617,497 617,497 1,318 (616,179)
Transfers from other funds 7,500,000 7,500,000 - (7,500,000) Amount available for appropriation $ 25,027,005 $ 25,027,005 $ 23,188,361 $ (1,838,644) Expenditures:

General government $ 9,379,557 $ 13,173,201 $ 11,650,162 $ 1,523,039 Non-departmental 3,133,724 3,133,724 3,133,725 (1)
Transfers to other funds 6,892,061 6,892,061 6,892,061 - Total charges to appropriations 19,405,342 23,198,986 21,675,948 1,523,038 Amount of resources over (under)
charges to appropriations 5,621,663 1,828,019 1,512,413 (315,606) Fund balance, June 30 $ 10,620,687 $ 6,827,043 $ 6,511,437 $ (315,606) Budgetary Comparison Schedule, Community Development Block Grant Fund For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 403,225 $ 403,225 $ 403,225 $ -
Revenues:

Intergovernmental 6,447,153 24,734,026 10,968,982 (13,765,044) Interest income - - 21,372 21,372
Loan payments 169,868 169,868 180,319 10,451
Other income - - 121,795 121,795
Amount available for appropriation $ 6,617,021 $ 24,903,894 $ 11,292,468 $ (13,611,426) Expenditures:

Economic/Community development $ - $ 16,623,745 $ 8,749,079 $ 7,874,666 Capital outlay 2,432,554 6,446,102 2,749,726 3,696,376
Transfers to other funds 517,811 517,811 517,810 1
Total charges to appropriations 2,950,365 23,587,658 12,016,615 11,571,043 Amount of resources over (under)
charges to appropriations 3,666,656 (1,316,236) (724,147) (2,040,383) Fund balance, June 30 $ 4,069,881 $ 1,719,461 $ (320,922) $ (2,040,383) 111

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Gas Tax & Road Fund
For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 7,682,317 $ 7,682,317 $ 7,682,317 $ - Revenues:

Intergovernmental 38,147,910 164,253,395 81,218,305 (83,035,090) Charges for services - 50,000 - (50,000)
Fines, forfeitures and assessments 50,000 50,000 71,342 21,342 Interest income (loss) 70,000 70,000 (219,528) (289,528) Other income - - 9,105 9,105
Amount available for appropriation $ 38,267,910 $ 164,423,395 $ 81,079,224 $ (83,344,171) Expenditures:

Public works $ 3,884,915 $ 3,918,400 $ 3,833,831 $ 84,569 Capital outlay 33,962,910 167,942,651 70,186,199 97,756,452 Transfers to other funds 38,500 97,500 97,500 -
Total charges to appropriations (37,886,325) (171,958,551) (74,117,530) 97,841,021 Amount of resources over (under)
charges to appropriations 381,585 (7,535,156) 6,961,694 14,496,850 Fund balance, June 30 $ 8,063,902 $ 147,161 $ 14,644,011 $ 14,496,850 Budgetary Comparison Schedule, COVID Relief Fund
For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 15,688,130 $ 15,688,130 $15,688,130 $ - Revenues:

Intergovernmental 10,600,000 19,637,138 5,422,283 (14,214,855) Interest income 30,000 30,000 208,716 178,716
Amount available for appropriation $ 10,630,000 $ 19,667,138 $ 5,630,999 $ (14,036,139) Expenditures:

Economic/Community development $ - $ 38,374,572 $10,121,804 $ 28,252,768 Non-departmental $ - $ 13,641,428 $ 5,220,895 $ 8,420,533 Transfers to other funds - 8,600,000 - 8,600,000
Total charges to appropriations - (60,616,000) (15,342,699) 45,273,301 Amount of resources over (under)
charges to appropriations 10,630,000 (40,948,862) (9,711,700) 31,237,162 Fund balance, June 30 $ 26,318,130 $(25,260,732) $ 5,976,430 $ 31,237,162 112

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Redevelopment Successor Agency Housing Fund For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 2,206,814 $ 2,206,814 $ 2,561,367 $ 354,553 Revenues:

Interest income (loss) 17,000 17,000 (39,398) (56,398)
Other income - - 194,217 194,217
Amount available for appropriation $ 17,000 $ 17,000 $ 154,819 $ 137,819 Expenditures:

Capital outlay $ - $ 210,715 $ - $ 210,715
Economic/Community development - 398,145 104,399 293,746 Total charges to appropriations - (608,860) (104,399) 504,461 Amount of resources over (under)
charges to appropriations 17,000 (591,860) 50,420 642,280 Fund balance, June 30 $ 2,223,814 $ 1,614,954 $ 2,611,787 $ 996,833 113

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)

DEFINED PENSION PLAN
The Schedules of Changes in Net Pension Liability and Related Ratios as of June 30, 2022 are below:

MISCELLANEOUS PLAN [a][e]
Fiscal Year End: 2021 2022 2021 2020 2019
Total Pension Liability
Service Costs $ 10,008,798 $ 9,487,348 $ 9,761,680 $ 9,865,219 Interest on Total Pension Liability 43,128,230 41,409,296 40,017,148 38,377,061 Changes of Benefit Terms - - - -
Changes in Assumptions - - - (3,069,067)
Difference Between Expected and Actual Experience 3,580,266 (1,467,027) 1,681,960 (4,948,406) Benefit Payments [b] (31,741,505) (29,651,687) (27,756,407) (26,111,942) Net Change in Total Pension Liability $ 24,975,789 $ 19,777,930 $ 23,704,381 $ 14,112,865 Total Pension Liability - Beginning 610,478,118 590,700,188 566,995,807 552,882,942 Total Pension Liability - Ending [1] $ 635,453,907 $ 610,478,118 $ 590,700,188 $ 566,995,807 Plan Fiduciary Net Position
Contributions - Employer $ 19,503,572 $ 17,627,444 $ 15,201,992 $ 13,222,781 Contributions - Employee 4,617,600 4,310,604 3,956,979 4,245,043 Net Investment Income 98,463,929 20,997,830 26,318,678 32,008,762 Other Miscellaneous Income - - - -
Benefit Payments [b] (31,741,505) (29,651,687) (27,756,407) (26,111,942) Plan to Plan Resource Movement - 1,336 - (939)
Administrative Expense (434,899) (595,862) (289,187) (597,766) Other Misc Income/(Expense) - - 939 (1,135,167)
Net Change in Plan Fiduciary Net Position $ 90,408,697 $ 12,689,665 $ 17,432,994 $ 21,630,772 Plan Fiduciary Net Position - Beginning $ 435,360,737 $ 422,671,072 $ 405,238,078 $ 383,607,306 Plan Fiduciary Net Position - Ending [2] 525,769,434 435,360,737 422,671,072 405,238,078 Plan Net Pension Liability - [1]-[2] $ 109,684,473 $ 175,117,381 $ 168,029,116 $ 161,757,729 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %82.74 %71.31 %71.55 %71.47 Covered Payroll [f] $ 59,434,668 $ 55,579,074 $ 55,934,450 $ 55,301,410 Plan Net Pension Liability as a Percentage
of Covered Payroll %184.55 %315.08 %300.40 %292.50
Schedules of Plan Contributions
Fiscal Year End 2022 2021 2020 2019
Actuarially Determined Contribution [c] $ 19,503,572 $ 17,627,444 $ 15,201,992 $ 13,222,781 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (19,503,572) $ (17,627,444) $ (15,201,992) $ (13,222,781) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 59,434,668 $ 55,579,074 $ 55,934,460 $ 55,301,410 Contributions as a Percentage of Covered Employee Payroll %32.82 %31.72 %27.18 %23.91 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumptions: None in 2019 or 2020. In 2018, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. 114

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
MISCELLANEOUS PLAN [a][e]
Fiscal Year End: 2021 2018 2017 2016 2015
Total Pension Liability
Service Costs $ 10,121,201 $ 9,229,271 $ 9,371,317 $ 9,394,857 Interest on Total Pension Liability 37,355,571 36,457,017 34,880,653 33,174,032 Changes of Benefit Terms - - - -
Changes in Assumptions 31,112,110 - (8,541,600) -
Difference Between Expected and Actual Experience (8,386,592) (2,271,125) (682,929) - Benefit Payments [b] (23,977,515) (21,951,615) (20,655,868) (18,737,652) Net Change in Total Pension Liability $ 46,224,775 $ 21,463,548 $ 14,371,573 $ 23,831,237 Total Pension Liability - Beginning 506,658,167 485,194,619 470,823,046 446,991,809 Total Pension Liability - Ending [1] $ 552,882,942 506,658,167 485,194,619 470,823,046 Plan Fiduciary Net Position
Contributions - Employer $ 11,107,872 $ 10,734,470 $ 10,017,697 $ 9,220,181 Contributions - Employee 4,188,806 4,400,305 4,653,169 4,566,671 Net Investment Income 39,138,504 1,891,631 7,966,951 53,513,763 Other Miscellaneous Income - - - -
Benefit Payments [b] (23,977,515) (21,951,615) (20,655,868) (18,737,652) Plan to Plan Resource Movement - (40,308) - -
Administrative Expense (522,173) (218,704) (403,815) -
Other Misc Income/(Expense) - - - -
Net Change in Plan Fiduciary Net Position $ 29,935,494 $ (5,184,221) $ 1,578,134 $ 48,562,963 Plan Fiduciary Net Position - Beginning $ 353,671,812 $ 358,856,033 $ 357,277,899 $ 308,714,936 Plan Fiduciary Net Position - Ending [2] 383,607,306 353,671,812 358,856,033 357,277,899 Plan Net Pension Liability - [1]-[2] $ 169,275,636 $ 152,986,355 $ 126,338,586 $ 113,545,147 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %69.38 %69.80 %73.00 %75.88 Covered Payroll [f] $ 56,388,660 $ 56,837,487 $ 57,065,633 $ 53,054,308 Plan Net Pension Liability as a Percentage
of Covered Payroll %300.19 %269.16 %221.00 %214.02
Schedules of Plan Contributions
Fiscal Year End 2018 2017 2016 2015
Actuarially Determined Contribution [c] $ 11,107,872 $ 10,734,470 $ 10,017,697 $ 9,220,181 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (11,107,872) $ (10,734,470) $ (10,017,697) $ (9,220,181) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 56,388,660 $ 56,837,487 $ 57,065,623 $ 53,054,308 Contributions as a Percentage of Covered Employee Payroll %19.70 %18.89 %17.55 %17.38 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Page 137 of 554 ends

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued)
SAFETY FIRE PLAN [a][e]
Fiscal Year end: 2021 2022 2021 2020 2019
Total Pension Liability
Service Costs $ 5,209,767 $ 4,666,713 $ 4,554,882 $ 4,690,651 Interest on Total Pension Liability 21,862,120 21,040,275 20,357,836 19,788,058 Changes of Benefit Terms - - - -
Changes in Assumptions - - - (1,346,780)
Difference Between Expected and Actual Experience 1,665,276 287,661 (1,450,007) (1,205,127) Benefit Payments [b] (16,341,306) (15,957,610) (15,465,768) (14,518,038) Net Change in Total Pension Liability $ 12,395,857 $ 10,037,039 $ 7,996,943 $ 7,408,764 Total Pension Liability - Beginning 309,664,414 299,627,375 291,630,432 284,221,668 Total Pension Liability - Ending [1] $ 322,060,271 $ 309,664,414 $ 299,627,375 $ 291,630,432 Plan Fiduciary Net Position
Contributions - Employer $ 9,545,170 $ 8,572,787 $ 7,433,992 $ 6,452,089 Contributions - Employee 1,928,537 1,720,912 1,590,164 1,612,168 Net Investment Income 49,937,203 10,642,420 13,562,717 16,662,233 Other Miscellaneous Income - - - -
Benefit Payments [b] (16,341,306) (15,957,610) (15,465,768) (14,518,038) Plan to Plan Resource Movement - (1,336) - (487)
Administrative Expense (220,770) (304,975) (149,404) (311,742) Other Misc Income/(Expense) - - 487 (592,003)
Net Change in Plan Fiduciary Net Position $ 44,848,834 $ 4,672,198 $ 6,972,188 $ 9,304,220 Plan Fiduciary Net Position - Beginning $ 221,004,118 $ 216,331,920 $ 209,359,732 $ 200,055,512 Plan Fiduciary Net Position - Ending [2] 265,852,952 221,004,118 216,331,920 209,359,732 Plan Net Pension Liability - [1]-[2] $ 56,207,319 $ 88,660,296 $ 83,295,455 $ 82,270,700 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %82.55 %71.37 %72.20 %71.79 Covered Payroll [f] $ 19,592,955 $ 17,426,111 $ 16,904,368 $ 17,260,904 Plan Net Pension Liability as a Percentage
of Covered Payroll %286.88 %508.78 %492.75 %476.63
Schedules of Plan Contributions
Fiscal Year End 2022 2021 2020 2019
Actuarially Determined Contribution [c] $ 9,545,170 $ 8,572,787 $ 7,433,992 $ 6,452,089 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (9,545,170) $ (8,572,787) $ (7,433,992) $ (6,452,089) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 19,592,955 $ 17,426,111 $ 16,904,368 $ 17,260,904 Contributions as a Percentage of Covered Payroll %48.72 %49.20 %43.98 %37.38 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
SAFETY FIRE PLAN [a][e]
Fiscal Year end: 2021 2018 2017 2016 2015
Total Pension Liability
Service Costs $ 4,691,377 $ 3,982,592 $ 4,038,459 $ 4,022,753 Interest on Total Pension Liability 19,273,519 18,906,125 18,125,192 17,409,125 Changes of Benefit Terms - - - -
Changes in Assumptions 16,102,827 - (4,419,326) -
Difference Between Expected and Actual Experience (3,292,736) 880,783 (357,892) - Benefit Payments [b] (13,914,493) (13,350,272) (12,266,190) (11,440,930) Net Change in Total Pension Liability $ 22,860,494 $ 10,419,228 $ 5,120,243 $ 9,990,948 Total Pension Liability - Beginning 261,361,174 250,941,946 245,821,703 235,830,755 Total Pension Liability - Ending [1] $ 284,221,668 $ 261,361,174 $ 250,941,946 $ 245,821,703 Plan Fiduciary Net Position
Contributions - Employer $ 5,766,115 $ 5,299,399 $ 4,717,136 $ 4,243,095 Contributions - Employee 1,585,475 1,575,291 1,496,855 1,485,484 Net Investment Income 20,512,738 920,604 4,369,856 29,300,590 Other Miscellaneous Income - - - -
Benefit Payments [b] (13,914,493) (13,350,272) (12,266,190) (11,440,930) Plan to Plan Resource Movement - - (13) -
Administrative Expense (275,179) (117,046) (216,134) -
Other Misc Income/(Expense) - - - -
Net Change in Plan Fiduciary Net Position $ 13,674,656 $ (5,672,024) $ (1,898,490) $ 23,588,239 Plan Fiduciary Net Position - Beginning $ 186,380,856 $ 192,052,880 $ 193,951,370 $ 170,363,131 Plan Fiduciary Net Position - Ending [2] 200,055,512 186,380,856 192,052,880 193,951,370 Plan Net Pension Liability - [1]-[2] $ 84,166,156 $ 74,980,318 $ 58,889,066 $ 51,870,333 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %70.39 %71.31 %76.00 %78.90 Covered Payroll [f] $ 17,071,347 $ 16,365,695 $ 16,338,791 $ 15,554,085 Plan Net Pension Liability as a Percentage
of Covered Payroll %493.03 %458.16 %360.00 %333.48
Schedules of Plan Contributions
Fiscal Year End 2018 2017 2016 2016
Actuarially Determined Contribution [c] $ 5,766,115 $ 5,299,399 $ 4,717,136 $ 4,243,095 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (5,766,115) $ (5,299,399) $ (4,717,136) $ (4,243,095) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 17,071,347 $ 16,365,695 $ 16,338,791 $ 15,554,085 Contributions as a Percentage of Covered Payroll %33.78 %32.38 %28.87 %27.28 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued)
SAFETY POLICE PLAN [a][e]
Fiscal Year end: 2021 2022 2021 2020 2019
Total Pension Liability
Service Costs $ 11,343,912 $ 10,543,138 $ 10,370,024 $ 10,220,547 Interest on Total Pension Liability 39,064,145 37,082,164 35,663,211 34,128,107 Changes of Benefit Terms - - - -
Changes in Assumptions - - - (2,726,217)
Difference Between Expected and Actual Experience 6,572,677 (1,024,983) 1,031,548 1,792,996 Benefit Payments [b] (27,865,756) (25,890,920) (24,607,704) (23,362,241) Net Change in Total Pension Liability $ 29,114,978 $ 20,709,399 $ 22,457,079 $ 20,053,192 Total Pension Liability - Beginning 548,039,927 527,330,528 504,873,449 484,820,257 Total Pension Liability - Ending [1] $ 577,154,905 $ 548,039,927 $ 527,330,528 $ 504,873,449 Plan Fiduciary Net Position
Contributions - Employer $ 21,113,667 $ 19,171,916 $ 17,184,398 $ 15,159,139 Contributions - Employee 4,277,875 3,896,766 3,604,241 3,650,956 Net Investment Income 80,187,665 16,918,079 20,791,987 25,183,248 Other Miscellaneous Income - - - -
Benefit Payments [b] (27,865,756) (25,890,920) (24,607,704) (23,362,241) Plan to Plan Resource Movement - - - (740)
Administrative Expense (350,019) (474,763) (228,376) (468,655) Other Misc Income/(Expense) - - 740 (889,985)
Net Change in Plan Fiduciary Net Position $ 77,363,432 $ 13,621,078 $ 16,745,286 $ 19,271,722 Plan Fiduciary Net Position - Beginning $ 350,390,734 $ 336,769,651 $ 320,024,365 $ 300,752,643 Plan Fiduciary Net Position - Ending [2] 427,754,166 350,390,729 336,769,651 320,024,365 Plan Net Pension Liability - [1]-[2] $ 149,400,739 $ 197,649,198 $ 190,560,877 $ 184,849,084 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %74.11 %63.94 %63.86 %63.39 Covered Payroll [f] $ 39,374,913 $ 36,318,078 $ 35,362,400 $ 34,555,725 Plan Net Pension Liability as a Percentage
of Covered Payroll %379.43 %544.22 %538.88 %534.93
Schedules of Plan Contributions
Fiscal Year End 2022 2021 2020 2019
Actuarially Determined Contribution [c] $ 21,113,667 $ 19,171,916 $ 17,184,398 $ 15,159,139 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (21,113,667) $ (19,171,916) $ (17,184,398) $ (15,159,139) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 39,374,913 $ 36,318,078 $ 35,362,400 $ 34,555,725 Contributions as a Percentage of Covered Payroll %53.62 %52.79 %48.60 %43.87 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)
SAFETY POLICE PLAN [a][e]
Fiscal Year end: 2021 2018 2017 2016 2015
Total Pension Liability
Service Costs $ 10,633,847 $ 9,484,234 $ 8,534,322 $ 8,823,744 Interest on Total Pension Liability 32,733,299 31,506,218 29,736,286 28,279,962 Changes of Benefit Terms - - - -
Changes in Assumptions 29,167,825 - (7,760,962) -
Difference Between Expected and Actual Experience (3,619,242) 4,042,528 872,107 - Benefit Payments [b] (22,076,716) (20,226,151) (19,077,307) (17,776,028) Net Change in Total Pension Liability $ 46,839,013 $ 24,806,829 $ 12,304,446 $ 19,327,678 Total Pension Liability - Beginning 437,981,244 413,174,415 400,869,969 381,542,291 Total Pension Liability - Ending [1] $ 484,820,257 437,981,244 413,174,415 400,869,969 Plan Fiduciary Net Position
Contributions - Employer $ 14,646,334 $ 13,792,487 $ 12,287,267 $ 10,750,572 Contributions - Employee 3,426,099 3,794,305 3,238,371 2,920,326 Net Investment Income 30,690,942 1,419,472 6,082,288 41,170,702 Other Miscellaneous Income - - - -
Benefit Payments [b] (22,076,716) (20,226,151) (19,077,307) (17,776,028) Plan to Plan Resource Movement - 40,308 - -
Administrative Expense (405,238) (168,097) (313,848) -
Other Misc Income/(Expense) - - - -
Net Change in Plan Fiduciary Net Position $ 26,281,421 $ (1,347,676) $ 2,216,771 $ 37,065,572 Plan Fiduciary Net Position - Beginning $ 274,471,222 $ 275,818,898 $ 273,602,127 $ 236,536,555 Plan Fiduciary Net Position - Ending [2] 300,752,643 274,471,222 275,818,898 273,602,127 Plan Net Pension Liability - [1]-[2] $ 184,067,614 $ 163,510,022 $ 137,355,517 $ 127,267,842 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %62.03 %62.67 %66.00 %68.25 Covered Payroll [f] $ 35,225,410 $ 35,046,314 $ 30,842,116 $ 30,496,017 Plan Net Pension Liability as a Percentage
of Covered Payroll %522.54 %466.55 %445.00 %417.33
Schedules of Plan Contributions
Fiscal Year End 2018 2017 2016 2016
Actuarially Determined Contribution [c] $ 14,646,334 $ 13,792,487 $ 12,287,267 $ 10,750,572 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (14,646,334) $ (13,792,487) $ (12,287,267) $ (10,750,572) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 35,225,410 $ 35,046,314 $ 30,842,116 $ 30,496,107 Contributions as a Percentage of Covered Payroll %41.58 %39.36 %39.84 %35.25 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)

OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN - SCHEDULE OF CHANGES IN THE CITY'S NET

OPEB LIABILITY AND RELATED RATIOS
Total OPEB Liability [a] 2022 2021 2020 2019 2018
Service Cost [b] $ 1,303,741 $ 1,570,476 $ 1,861,902 $ 1,975,894 $ 2,149,807 Interest 5,765,058 6,452,159 7,113,376 6,986,837 7,329,180 Difference between expected and actual experience (10,056,063) (11,723,133) (20,451,948) (762,025) (6,042,345) Changes of assumptions and methods (1,005,648) (5,621,334) 3,844,143 - (5,330,662) Benefit payments (4,263,425) (4,046,134) (6,604,007) (4,507,862) (5,050,000) Net Change in Total OPEB Liability (8,256,337) (13,367,966) (14,236,534) 3,692,844 (6,944,020) Total OPEB Liability - Beginning 116,103,123 129,471,089 143,707,623 140,014,779 146,958,802 Total OPEB Liability - Ending (a) $107,846,786 $116,103,123 $129,471,089 $143,707,623 $140,014,782 Plan Fiduciary Net Position
Contributions - employer $ 6,852,674 $ 6,826,986 $ 7,940,057 $ 7,527,447 $ 5,050,000 Net investment income 10,311,017 4,544,160 4,882,723 2,017,934 3,011,528 Benefit payments (4,263,425) (4,046,134) (6,604,007) (4,507,862) (5,050,000) Administrative expense (231,118) (211,914) (196,306) (188,705) (180,556) Net Change in Plan Fiduciary Net Position 12,669,148 7,113,098 6,022,467 4,848,814 2,830,972 Plan Fiduciary Net Position - Beginning 79,590,815 72,477,717 66,455,250 61,606,436 58,775,464 Plan Fiduciary Net Position - Ending (b) 92,259,963 79,590,815 72,477,717 66,455,250 61,606,436 Plan's Net OPEB Liability - Ending (a)-(b) $ 15,586,823 $ 36,512,308 $ 56,993,372 $ 77,252,373 $ 78,408,346 Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 85.55% 68.55% 55.98% 46.24% 44.00% Covered payroll $ 39,698,602 $ 39,698,602 $ 39,698,602 $ 46,166,357 $ 44,930,761 Plan Net OPEB Liability as Percentage of Covered
Payroll 39.26% 91.97% 143.57% 167.33% 174.51%
[a] Additional years' information will be displayed as it becomes available. [b] The service cost is based on previous years' valuation. [c] Covered payroll is the payroll on which contributions to the pension plan are based on.. 120

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CITY OF BAKERSFIELD
Required Supplementary Information (continued)

SCHEDULE OF OPEB CONTRIBUTIONS
Last Ten Fiscal Years
Year Ended
June 30
Actuarially
Determined
Contributions in
Relation
Contribution
Deficiency
Employee
Covered
Contributions
as a Percentage
of Covered Employee
Date Contributions (ADC) To ADC (Excess) Payroll Payroll 2013 $8,006,053 $16,832,576 $(8,826,523) $60,284,949 27.92% 2014 8,006,053 10,292,900 (2,286,847) 56,277,827 18.29% 2015 6,539,299 6,950,125 (410,826) 53,368,986 13.02%
2016 6,539,299 8,038,622 (1,499,323) 50,985,920 15.77%
2017 7,530,031 5,645,839 1,884,192 44,930,761 12.57%
2018 7,530,031 5,050,000 2,480,031 44,930,791 11.24%
2019 6,973,711 7,527,447 (553,736) 46,166,357 16.31%
2020 6,973,711 7,940,057 (966,346) 39,698,602 20.00%
2021 4,636,647 6,826,986 (2,190,339) 39,698,602 17.20%
2022 4,636,647 6,852,674 (2,216,027) 39,698,602 17.26%
Notes to the Schedule of OPEB Contributions
Methods and assumptions used to establish "actuarially
deteremined contributions" (ADC) rates:

Actuarial cost method Projected Unit Credit
Amortization Method 30-year closed, level dollar payment Remaining amortization period 18 years as of June 30, 2019 Asset vaulation method Fair value
Actuarial assumptions June 30, 2019 valuation
Discount rate 5.00%
Inflation rate N/A
Payroll Growth
Ranges from 13.02% to 3.44% based on years of service, including inflation
Other assumptions Same as those used in the June 30, 2020 GASB 74 actuarial valuation dated March 5, 2021
121

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122

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CITY OF BAKERSFIELD
Supplementary Information
Contents Pages(s)
General Fund
Balance Sheet 126
Schedule of Revenues by Function - Budget and Actual 127 Schedule of Expenditures by Division - Budget and Actual 128 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Public Safety and Vital Services Funds 129 Special Revenue Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 132
Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual 138
Capital Projects Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 140
Non-Major Governmental Funds
Combining Balance Sheet 142
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
144
Internal Service Funds
Combining Statement of Net Position 147
Combining Statement of Activities and Changes in Net Position 148 Combining Statement of Cash Flows 149
Fiduciary Funds
Statement of Changes in Assets and Liabilities - Fiduciary Funds (Custodial)
150
Combining Statements of Fiduciary Net Position 150
Combining Statements of Changes in Fiduciary Net Position 154 Long-term Debt Recorded in Private Purpose Trust Fund 156 123

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General Fund
This fund was established to account for the revenues and expenditures to carry out basic governmental activities of the City of Bakersfield such as general government, public safety, public works and community services.

Revenues are recorded by source, i.e., taxes, licenses and permits, etc. Expenditures are made primarily on current day-to-day operations and are recorded by major functional classifications and by operating departments.

This fund accounts for all financial transactions not accounted for in another fund. 124

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125

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CITY OF BAKERSFIELD
Balance Sheet
General Fund
June 30, 2022
General Fund
Assets:

Cash and investments $ 89,708,575
Accounts receivable, net 9,777,236
Interest receivable 219,897
Due from other governmental agencies 39,248,667
Due from other funds 8,942,716
Lease receivable 449,397
Prepaid items 59,739
Total assets $ 148,406,227
Liabilities, Deferred Inflows of Resources and Fund Balance:

Liabilities:

Accounts payable $ 11,613,444
Due to other governmental agencies 3,800,000
Advances from grantors and third parties 1,906,190
Total liabilities 17,319,634
Deferred Inflows of Resources:

Deferred Inflow Leases 434,694
Deferred revenue 2,210,600
Fund Balance:

Nonspendable 98,463
Committed
Cash basis reserve 48,586,675
Contractual obligations 6,024,807
Appropriations for new year budget 31,832,426
Assigned
Petty cash 29,170
Non-contractual encumbrances 1,298,145
Compensated absences 2,367,135
Public Safety Vital Services 30,725,799
Unassigned 7,478,680
Total fund balance 128,441,300
Total liabilities, deferred inflows of resources and fund balance $ 148,406,228 126

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CITY OF BAKERSFIELD
Schedule of Revenues by Function - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2022
Budget Actual
Variance with
Final Budget
Revenues:

Taxes:

Property taxes $ 94,416,300 $ 96,169,420 $ 1,753,120
Sales and use taxes 163,320,704 201,046,660 37,725,956
Property transfer tax 1,400,000 2,053,178 653,178
Utility franchise tax 5,150,000 6,436,142 1,286,142
Business license tax 3,800,000 3,997,145 197,145
Total taxes 268,087,004 309,702,545 41,615,541
Licenses and permits:

Building permits 2,000,000 1,844,719 (155,281)
Planning permits 68,000 73,318 5,318
Public works permits 745,000 683,440 (61,560)
Police permits 316,800 294,482 (22,318)
Other licenses and permits 150,700 147,406 (3,294)
Total licenses and permits 3,280,500 3,043,365 (237,135) Intergovernmental:

Federal grants 1,876,863 642,630 (1,234,233)
State of California 8,615,513 6,223,718 (2,391,795)
Other grants 489,778 1,019,168 529,390
Total intergovernmental 10,982,154 7,885,516 (3,096,638) Charges for services:

Building 3,498,000 3,753,649 255,649
Planning 394,800 808,651 413,851
Public works 1,528,512 2,464,437 935,925
Police 608,900 1,016,439 407,539
Fire 7,360,000 7,410,632 50,632
Recreation and parks 565,300 644,784 79,484
Interfund charges 13,735,000 16,494,635 2,759,635
Other charges 270,850 319,615 48,765
Total charges for services 27,961,362 32,912,842 4,951,480 Fines, forfeitures, and assessments 660,000 1,204,150 544,150 Miscellaneous:

Interest income (loss) 485,000 (355,561) (840,561)
Net increase (decrease) in the fair value of investments - (3,211,237) (3,211,237) Contributions and donations 670,142 446,695 (223,447)
Other income 948,423 3,690,609 2,742,186
Total miscellaneous 2,103,565 570,506 (1,533,059)
Total revenues $ 313,074,585 $ 355,318,924 $ 42,244,339 127

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CITY OF BAKERSFIELD
Schedule of Expenditures by Division - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2022
Budget Actual
Variance with
Final Budget
General Government:

Mayor & City council $ 1,150,727 $ 903,635 $ 247,092
City manager 2,123,065 1,659,097 463,968
City clerk 920,441 752,099 168,342
Human resources 2,756,596 2,084,946 671,650
Information technology 7,945,113 7,087,290 857,823
Financial services 3,443,486 3,405,696 37,790
City attorney 2,480,848 1,755,229 725,619
Total general government 20,820,276 17,647,992 3,172,284 Public Safety:

Public safety - Police 137,129,134 134,522,103 2,607,031 Public safety - Fire 51,422,635 51,507,722 (85,087)
Total public safety 188,551,769 186,029,825 2,521,944
Public Works:

Administration 2,912,355 2,452,792 459,563
Engineering 8,004,337 7,513,032 491,305
General services 11,376,548 11,304,835 71,713
Streets and roads 8,470,668 8,481,024 (10,356)
Total public works 30,763,908 29,751,683 1,012,225
Recreation and Parks:

Administration 1,327,236 1,234,258 92,978
Recreation 3,848,599 3,254,096 594,503
Parks 22,101,114 20,480,707 1,620,407
Total recreation and parks 27,276,949 24,969,061 2,307,888 Development Services:

Planning 4,333,075 2,929,166 1,403,909
Building 10,859,349 8,875,704 1,983,645
Total development services 15,192,424 11,804,870 3,387,554 Economic/Community Development 19,412,477 6,740,709 12,671,768 Non-departmental 13,913,054 11,647,045 2,266,009
Contingency - - -
Total General Fund Expenditures $ 315,930,857 $ 288,591,185 $ 27,339,672 128

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CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Public Safety and Vital Services (PSVS) Funds (sub-fund of General Fund) For the Fiscal Year Ended June 30, 2022
PSVS Funds
PSVS General Fund PSVS Capital Outlay
Total
PSVS
Funds
Revenues:

Taxes $ 102,281,086 $ - $ 102,281,086
Charges for services 498,662 - 498,662
Interest income (loss) (705,050) (918,099) (1,623,149)
Other income 275,360 - 275,360
Total revenues 102,350,058 (918,099) 101,431,959
Expenditures
Current:

General government 3,179,449 - 3,179,449
Public safety - Police 25,383,641 - 25,383,641
Public safety - Fire 5,848,479 - 5,848,479
Public works 2,578,898 34,868 2,613,766
Recreation and parks 1,603,544 - 1,603,544
Development Services 3,156,394 - 3,156,394
Capital outlay - 14,165,759 14,165,759
Total expenditures 41,750,405 14,200,627 55,951,032
Excess (deficiency) of
revenues
over (under) expenditures 60,599,653 (15,118,726) 45,480,927 Other financing sources
(uses):

Transfers in - 39,122,381 39,122,381
Transfers out (50,274,481) (5,000,000) (55,274,481)
Total other financing
sources (uses) (50,274,481) 44,122,381 (16,152,100)
Net change in fund balance 10,325,172 29,003,655 39,328,827 Fund balances - July 1 34,028,667 29,307,157 63,335,824 Fund balances - June 30 $ 44,353,839 $ 58,310,812 $ 102,664,651 129

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130

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Special Revenue Funds
These funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

Transient Occupancy Taxes Fund is used to account for Transient Occupancy Tax Revenues (Hotel Tax) and expenditures funded by this revenue source. The Rabobank Arena and Convention Center and Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund. This fund is also used to account for duties performed by Visit Bakersfield.

Community Development Block Grant Fund i s used to account for resources provided by the Federal Housing and Community Development Act o f 1974 for the elimination of slums and blight, housing conservation and improvements of community services.

Rental and Downpayment Assistance Fund is used to account for resources provided by the Federal Housing and Economic Recovery Act of 2008 to address congressionally identified needs of abandoned and foreclosed homes in the City. These funds are used for down payment assistance, acquisition of Real Estate Owned (REO) lender assets properties that have been foreclosed upon for redevelopment, rehabilitation of acquired residential structures, and demolition of blighted structures.

Covid Relief Fund is used to account for resources provided by the CARES Act as well as the American Rescue Plan Act for COVID-19 relief. Both of these federally funded assistance programs are used to address the negative impact of the COVID-19 pandemic on both the local economy and City operations as a whole.

Gas Tax & Road Fund i s used to account for the City's share, based upon population, of state gasoline taxes. State law requires these gasoline taxes be used to maintain streets or for major street construction. This fund also accounts for the resources provided by the Moving Ahead for Progress in the 21st Century Act (MAP21). Congestion Mitigation and Air Quality (CMAQ) funds are used in the metropolitan Bakersfield area to fund transportation projects in the Transportation Improvement Program. The Regional Surface Transportation Program (STP) is funded by Federal aid functionally classified higher than local road or rural minor collector routes. The Transportation Enhancement Activities (TEA) Program projects have a direct relationship to the intermodal transportation system by function, proximity, or impact. Lastly, the Highway Bridge Replacement and Rehabilitation Program (HBRR) allows each local agency two bridge replacement projects and two miscellaneous projects per year.

State (TDA) Transportation Fund i s used to account for three Transportation Development Act (TDA) funding sources.

Article 3 funds must be used to construct facilities that specifically benefit pedestrians and/or bicyclists. Article 4 funds are Local Transportation and State Transit Assistance Funds. These resources are used to cover the City's maintenance and operation costs of the Bakersfield Amtrak Railway Station. The City is the owner of the station and leases the facility to Amtrak, who operates the transit service. Article 4 funds may also be used for various improvements at bus stops throughout the City. Article 8 funds represent the City's allocation of the 1/4% of sales tax authorized by Senate Bill (SB) 325. State law requires these sales tax dollars be used for street purposes. These funds are received and expended by the City as lead agency servicing the local road network. All three revenue resources are accounted for individually as required by the State of California but are combined for financial reporting purposes. The City currently receives only Article 3 and Article 4 money.

State Safety Fund i s used to account for specific revenue received for certain Police and Fire related programs. The City Police Department has a share of traffic fine resources which are transferred to the General Fund to assist in funding the cost of traffic safety and control devices and State of California monies from the Supplemental Law Enforcement Services grant. The Fire Department operates a local Certified Unified Program Agency (CUPA) which is required for state and federal environmental regulation. These revenue sources are accounted for individually as required by the State, but combined for financial reporting purposes.

Redevelopment Successor Agency Housing Fund w as created on February 1, 2012, pursuant to the provisions of the Redevelopment Restructuring Act. The City has chosen to assume the housing functions and take over the housing assets of the former Redevelopment Agency.
131

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CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2022
Transient Occupancy Taxes
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ 8,500,000 $11,503,778 $ 3,003,778
Licenses and permits - - -
Intergovernmental - - -
Charges for services 7,179,508 10,673,248 3,493,740
Fines, forfeitures, and assessments - - -
Interest income (loss) 30,000 (189,983) (219,983)
Loan payments - - -
Contributions and donations 1,200,000 1,200,000 -
Other income 617,497 1,318 (616,179)
Total revenues 17,527,005 23,188,361 5,661,356
Expenditures
Current:

General government 13,173,201 11,650,162 1,523,039
Public safety - Police - - -
Public safety - Fire - - -
Public works - - -
Recreation and parks - - -
Economic/Community development - - -
Non-departmental 3,133,724 3,133,725 (1)
Capital outlay:

Transportation:

Traffic control - - -
Streets / Freeways - - -
Bridges - - -
Curbs, gutters and sidewalks - - -
Public facilities:

Parks and landscaping - - -
Other improvements - - -
Total expenditures 16,306,925 14,783,887 1,523,038
Excess (deficiency) of revenues over (under) expenditures 1,220,080 8,404,474 7,184,394 Other financing sources (uses):

Transfers in 7,500,000 - (7,500,000)
Transfers out (6,892,061) (6,892,061) -
Total other financing sources (uses) (6,892,061) (6,892,061) - Net change in fund balances 1,828,019 1,512,413 (315,606) Fund balances - beginning 4,999,024 4,999,024 -
Fund balances - ending $ 6,827,043 $ 6,511,437 $ (315,606) 132

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Community Development Block Grant Rental and Downpayment Assistance Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ - $ - $ -
- - - - - -
24,734,026 10,968,982 (13,765,044) 24,335,697 24,434,747 99,050 - - - - - -
- - - - - -
- 21,372 21,372 - 20,170 20,170
169,868 180,319 10,451 - 28,944 28,944
- - - - - -
- 121,795 121,795 - - -
24,903,894 11,292,468 (13,611,426) 24,335,697 24,483,861 148,164 - - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
16,623,745 8,749,079 7,874,666 24,434,747 24,191,389 243,358 - - - - - -
- - - - - -
150,000 145,382 4,618 - - -
- - - - - -
5,049,766 2,260,046 2,789,720 - - -
329,889 325,716 4,173 - - -
916,447 18,581 897,866 - - -
23,069,847 11,498,804 11,571,043 24,434,747 24,191,389 243,358 1,834,047 (206,336) (2,040,383) (99,050) 292,472 391,522 - - - - - -
(517,811) (517,810) (1) - - -
(517,811) (517,810) (1) - - -
1,316,236 (724,146) (2,040,382) (99,050) 292,472 391,522 403,225 403,225 - 18,026 18,026 -
$ 1,719,461 $ (320,921) $ (2,040,382) $ (81,024) $ 310,498 $ 391,522 133

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CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued) Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2022
Covid Relief
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental 19,637,138 5,422,283 (14,214,855)
Charges for services - - -
Fines, forfeitures, and assessments - - -
Interest income (loss) 30,000 208,716 178,716
Loan payments - - -
Contributions and donations - - -
Other income - - -
Total revenues 19,667,138 5,630,999 (14,036,139)
Expenditures
Current:

General government - - -
Public safety - Police - - -
Public safety - Fire - - -
Public works - - -
Recreation and parks - - -
Economic/Community development 38,374,572 10,121,804 28,252,768 Non-departmental 13,641,428 5,220,895 8,420,533
Capital outlay:

Transportation:

Traffic control - - -
Streets / Freeways - - -
Bridges - - -
Curbs, gutters and sidewalks - - -
Public facilities:

Parks and landscaping - - -
Other improvements - - -
Total expenditures 52,016,000 15,342,699 36,673,301
Excess (deficiency) of revenues over (under) expenditures (32,348,862) (9,711,700) (50,709,440) Other financing sources (uses):

Transfers in - - -
Transfers out (8,600,000) - (8,600,000)
Total other financing sources (uses) (8,600,000) - (8,600,000) Net change in fund balances (40,948,862) (9,711,700) (59,309,440) Fund balances - beginning 15,688,130 15,688,130 -
Fund balances - ending $ (25,260,732) $ 5,976,430 $(59,309,440) 134

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Gas Tax & Road Fund State (TDA) Transportation
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ - $ - $ -
- - - - - -
164,253,395 81,218,305 (83,035,090) 1,570,434 793,770 (776,664) - - - - - -
50,000 71,342 21,342 - - -
70,000 (219,528) (289,528) 1,000 (4,098) (5,098)
- - - - - -
- - - - - -
- 9,105 9,105 - - -
164,373,395 81,079,224 (83,294,171) 1,571,434 789,672 (781,762) - - - - - -
- - - - 173 (173)
- - - - - -
3,918,400 3,833,831 84,569 495,686 378,378 117,308
- - - 38,620 25,604 13,016
- - - - - -
- - - - - -
8,056,319 1,237,784 6,818,535 - - -
135,421,781 62,378,070 73,043,711 - - -
6,290,151 5,098,800 1,191,351 - - -
18,174,400 1,471,545 16,702,855 76,500 - 76,500
- - - - - -
- - - 956,974 385,517 571,457
171,861,051 74,020,030 97,841,021 1,567,780 789,672 778,108 (7,487,656) 7,059,194 14,546,850 3,654 - (3,654)
- - - - - -
(97,500) (97,500) - - - -
(97,500) (97,500) - - - -
(7,585,156) 6,961,694 14,546,850 3,654 - (3,654)
7,682,317 7,682,317 - - - -
$ 97,161 $ 14,644,011 $ 14,546,850 $ 3,654 $ - $ (3,654) 135

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CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued) Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2022
State Safety Fund
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ - $ - $ -
Licenses and permits 316,000 341,515 25,515
Intergovernmental 962,269 1,149,042 186,773
Charges for services 1,399,035 1,492,099 93,064
Fines, forfeitures, and assessments 1,350,000 1,868,040 518,040 Interest income (loss) 25,000 (77,829) (102,829)
Loan payments - - -
Contributions and donations - - -
Other income - - -
Total revenues 4,052,304 4,772,867 720,563
Expenditures
Current:

General government - - -
Public safety - Police 2,793,377 1,865,835 927,542
Public safety - Fire 1,748,162 1,496,802 251,360
Public works - - -
Recreation and parks - - -
Economic/Community development - - -
Non-departmental - - -
Capital outlay:

Transportation:

Traffic control - - -
Streets / Freeways - - -
Bridges - - -
Curbs, gutters and sidewalks - - -
Public facilities:

Parks and landscaping - - -
Other improvements - - -
Total expenditures 4,541,539 3,362,637 1,178,902
Excess (deficiency) of revenues over (under) expenditures (489,235) 1,410,230 1,899,465 Other financing sources (uses):

Transfers in - - -
Transfers out (1,118,000) (1,118,000) -
Total other financing sources (uses) (1,118,000) (1,118,000) - Net change in fund balances (1,607,235) 292,230 1,899,465 Fund balances - beginning 3,002,751 3,002,751 -
Fund balances - ending $ 1,395,516 $ 3,294,981 $ 1,899,465 136

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Redevelopment Successor Agency - Housing Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ 8,500,000 $ 11,503,778 $ 3,003,778
- - - 316,000 341,515 25,515
- - - 235,492,959 123,987,129 (111,505,830)
- - - 8,578,543 12,165,347 3,586,804
- - - 1,400,000 1,939,382 539,382
17,000 (39,398) (56,398) 173,000 (280,578) (453,578)
- - - 169,868 209,263 39,395
- - - 1,200,000 1,200,000 -
- 194,217 194,217 617,497 326,435 (291,062)
17,000 154,819 137,819 256,447,867 151,392,271 (105,055,596) - - - 13,173,201 11,650,162 1,523,039
- - - 2,793,377 1,866,008 927,369
- - - 1,748,162 1,496,802 251,360
- - - 4,414,086 4,212,209 201,877
- - - 38,620 25,604 13,016
398,145 104,400 293,745 79,831,209 43,166,672 (19,840,999) - - - 16,775,152 8,354,620 (8,420,534)
- - - 8,056,319 1,237,784 6,818,535
- - - 135,571,781 62,523,452 73,048,329
- - - 6,290,151 5,098,800 1,191,351
- - - 23,300,666 3,731,591 19,569,075
- - - 329,889 325,716 4,173
210,715 (1) 210,716 2,084,136 404,097 1,680,039
608,860 104,399 504,461 294,406,749 144,093,517 76,966,630 (591,860) 50,420 642,280 (37,958,882) 7,298,754 (28,088,966) - - - 7,500,000 - (7,500,000)
- - - (17,225,372) (8,625,371) 8,600,001
- - - (9,725,372) (8,625,371) 8,600,001
(591,860) 50,420 642,280 (47,684,254) (1,326,617) (26,988,965) 2,206,814 2,206,814 - 34,000,287 34,000,287 -
$ 1,614,954 $ 2,257,234 $ 642,280 $ (13,683,967) $ 32,673,670 $ 46,357,637 137

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CITY OF BAKERSFIELD
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Debt Service Fund
For the Fiscal Year Ended June 30, 2022
General Obligation Debt
Budget Actual
Variance with
Final Budget
Revenues:

Interest income (loss) $ - $ - $ -
Total revenues - - -
Expenditures:

Debt service:

Principal retirement 1,295,959 1,317,652 (21,693)
Interest and fiscal charges 28,917 17,809 11,108
Total expenditures 1,324,876 1,335,461 (10,585)
Deficiency of revenues under expenditures (1,324,876) (1,335,461) (10,585) Other financing sources:

Transfers in 1,240,770 1,335,461 94,691
Total other financing sources 1,240,770 1,335,461 94,691 Net change in fund balance (84,106) - 84,106
Fund balance - beginning (3,251,719) - 3,251,719
Fund balance - ending $ (3,335,825) $ - $ 3,335,825
138

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Capital Projects Funds
These funds account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds.

Capital Outlay Fund is used to account for the cost of capital projects financed by general revenues and grant/loan proceeds for recreational facilities.

Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646). Fees are collected based on the development's share of the cost to develop, improve, construct or enhance a neighborhood park (Ordinance No. 3327).

Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the regional circulation system caused by a development project. The fees are paid when a building permit for the development project is obtained, and are based upon the amount of traffic the development w ill generate. With these fees, the City constructs projects that have been identified as necessary to maintain the level of services required by the 2010 General Plan for the regional transportation network. This is a joint City and Kern County program which affects the entire metropolitan area. Fees are collected with the building permit and are based on the relative impact each land use has on the transportation netw ork. The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect updated costs and growth projections. Revenue from fees collected may also be used to service bonded debt incurred in Capital Improvement Construction.
139

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CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - All Capital Projects Funds
For the Fiscal Year Ended June 30, 2022
Capital Outlay Park Improvement Fund
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
Revenues:

Taxes $ 5,550,000 $ 6,306,714 $ 756,714 $ - $ - $ -
Intergovernmental 6,897,828 192,403 (6,705,425) - - -
Charges for services 60,000 58,285 (1,715) - - -
Fines, forfeitures, and
assessments - 114,101 114,101 1,532,000 2,197,274 665,274 Interest income (loss) 314,000 (1,743,173) (2,057,173) 50,000 (213,783) (263,783) Other income 720,410 - (720,410) - - -
Total revenues 13,542,238 4,928,330 (8,613,908) 1,582,000 1,983,491 401,491 Expenditures:

Current:

General government - - - - - -
Public works 34,868 34,868 - - - -
Non-departmental 2,364,881 499,366 1,865,515 - - -
Capital outlay:

Transportation:

Traffic control - - - - - -
Streets 4,208,856 2,753,161 1,455,695 - - -
Bridges 379,249 104,342 274,907 - - -
Streets / Freeways 48,266,376 18,760,021 29,506,355 - - - Public facilities:

Buildings 25,254,152 4,502,514 20,751,638 - - -
Parks and landscaping 6,973,591 693,763 6,279,828 695,750 384,450 311,300 Land acquisition - - - 770,730 437,630 333,100
Other improvements 50,829,904 5,307,339 45,522,565 2,947,790 - 2,947,790 Equipment:

Computers 22,316,779 134,823 22,181,956 - - -
Non-automotive 710,071 424,951 285,120 - - -
Total expenditures 161,338,727 33,215,148 128,123,579 4,414,270 822,080 3,592,190 Excess (deficiency) of revenues
over (under) expenditures (147,796,489) (28,286,818) 119,509,671 (2,832,270) 1,161,411 3,993,681 Other financing sources (uses):

Transfers in 66,523,381 66,523,381 - - - -
Transfers out (5,797,000) (5,797,000) - - - -
Total other financing
sources (uses) 60,726,381 60,726,381 - - - -
Net change in fund balances (87,070,108) 32,439,563 119,509,671 (2,832,270) 1,161,411 3,993,681 Fund balances - beginning 90,920,157 90,920,157 - 7,994,433 7,994,433 - Fund balances - ending $ 3,850,049 $ 123,359,720 $ 119,509,671 $ 5,162,163 $ 9,155,844 $ 3,993,681 140

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Transportation Development Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ 5,550,000 $ 6,306,714 $ 756,714
- - - 6,897,828 192,403 (6,705,425)
50,000 94,228 44,228 110,000 152,513 42,513
16,700,000 15,583,773 (1,116,227) 18,232,000 17,895,148 (336,852) 380,600 (338,245) (718,845) 744,600 (2,295,201) (3,039,801) - 9,799 9,799 720,410 9,799 (710,611)
17,130,600 15,349,555 (1,781,045) 32,254,838 22,261,376 (9,993,462) 196,788 112,183 84,605 196,788 112,183 84,605
819,038 665,891 153,147 853,906 700,759 153,147
6,052 - 6,052 2,370,933 499,366 1,871,567
444,234 281,765 162,469 444,234 281,765 162,469
5,692,263 1,175,284 4,516,979 9,901,119 3,928,445 5,972,674 - - - 379,249 104,342 274,907
61,537,078 21,906,223 39,630,855 109,803,454 40,666,244 69,137,210 - - - 25,254,152 4,502,514 20,751,638
- - - 7,669,341 1,078,213 6,591,128
- - - 770,730 437,630 333,100
- - - 53,777,694 5,307,339 48,470,355
- - - 22,316,779 134,823 22,181,956
- - - 710,071 424,951 285,120
68,695,453 24,141,346 44,554,107 234,448,450 58,178,574 176,269,876 (51,564,853) (8,791,791) 42,773,062 (202,193,612) (35,917,198) 166,276,414 11,500,000 - (11,500,000) 78,023,381 66,523,381 (11,500,000) (11,500,000) - 11,500,000 (17,297,000) (5,797,000) 11,500,000 - - - 60,726,381 60,726,381 -
(51,564,853) (8,791,791) 42,773,062 (141,467,231) 24,809,183 166,276,414 60,229,631 60,229,631 - 159,144,221 159,144,221 -
$ 8,664,778 $51,437,840 $ 42,773,062 $ 17,676,990 $183,953,404 $ 166,276,414 141

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CITY OF BAKERSFIELD
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2022
Special Revenue Funds
Rental and
Downpayment
Assistance
State (TDA)
Transportation
Assets:

Cash and investments $ 201,642 $ 226,033
Accounts receivable, net 4,715,677 -
Interest receivable 9,807 388
Due from other governmental agencies 99,050 53,451
Total assets $ 5,026,176 $ 279,872
Liabilities, Deferred Inflows of Resources, and Fund Balances:

Liabilities:

Accounts payable $ - $ 47,594
Advances from grantors and third parties - 232,278
Total liabilities - 279,872
Deferred Inflows of Resources:

Deferred revenue 4,715,677 -
Fund Balances:

Restricted 310,499 -
Total liabilities, deferred inflows
of resources, and fund balances $ 5,026,176 $ 279,872
142

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Special
Revenue Funds
Debt
Service Fund
State Safety
General
Obligation Debt
Total
Non-Major
Governmental
Funds
$ 3,312,695 $ - $ 3,740,370
112,852 - 4,828,529
8,034 - 18,229
- - 152,501
$ 3,433,581 $ - $ 8,739,629
$ 138,603 $ - $ 186,197
- - 232,278
138,603 - 418,475
- - 4,715,677
3,294,978 - 3,605,477
$ 3,433,581 $ - $ 8,739,629
143

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CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2022
Special Revenue Funds Special Revenue Funds
Rental and
Downpayment
Assistance
State (TDA)
Transportation
State
Safety
Revenues:

Licenses and permits $ - $ - $ 341,515
Intergovernmental 24,434,747 793,770 1,149,042
Charges for services - - 1,492,099
Fines, forfeitures and assessments - - 1,868,040
Interest income (loss) 20,170 (4,098) (77,829)
Loan payments 28,945 - -
Total revenues 24,483,862 789,672 4,772,867
Expenditures
Current:

Public safety - Police - 173 1,865,836
Public safety - Fire - - 1,496,802
Public works - 378,378 -
Recreation and parks - 25,604 -
Development services 99,050 - -
Economic community development 24,092,340 - -
Capital outlay - 385,517 (1)
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 24,191,390 789,672 3,362,637
Excess (deficiency) of revenues
over (under) expenditures 292,472 - 1,410,230
Other financing sources (uses):

Transfers in - - -
Transfers out - - (1,118,000)
Total other financing sources (uses) - - (1,118,000)
Net change in fund balances 292,472 - 292,230
Fund balances - beginning 18,026 - 3,002,748
Fund balances - ending $ 310,498 $ - $ 3,294,978
144

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Debt
Service Fund
General Obligation
Debt
Total
Non-Major
Governmental
Funds
$ - $ 341,515
- 26,377,559
- 1,492,099
- 1,868,040
- (61,757)
- 28,945
- 30,046,401
- 1,866,009
- 1,496,802
- 378,378
- 25,604
- 99,050
- 24,092,340
- 385,516
1,317,652 1,317,652
17,809 17,809
1,335,461 29,679,160
(1,335,461) 367,241
1,335,461 1,335,461
- (1,118,000)
1,335,461 217,461
- 584,702
- 3,020,774
$ - $ 3,605,476
145

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Internal Service Funds
These funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis.

Self-Insurance Fund is used to account for the cost of operating a self-insurance program as follows:

With regard to workers' compensation, the City is self-insured for the first $500,000 of each injury or occurrence and is a member of California Public Entity Insurance Authority (CPEIA) which provides $5,000,000 of excess coverage to protect against catastrophic type losses. Funding for this program is provided by interdepartmental charges varying by employee classification and their industrial injury loss experience.

With regard to general and auto liability, the City is self-insured for the first $1,000,000 of each accident or occurrence and is a member of the Authority for California Cities Excess Liability (ACCEL) which provides excess commercial insurance in the amount of $10,000,000. Funding for this program is provided by interdepartmental charges.

Equipment Management Fund i s used to account for the cost of operating and maintaining a maintenance facility for vehicular, telecommunications and computer equipment used by other City departments. Such costs are billed to other departments via established rates which are based upon actual cost. Actual costs include maintenance, repair, and replacement cost of shop and automotive equipment.
146

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CITY OF BAKERSFIELD
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
Self-
Insurance
Equipment
Management Total
Assets:

Current assets:

Cash and investments $ 15,095,416 $51,578,507 $66,673,923 Accounts receivable, net 1,739 551 2,290
Interest receivable 36,138 87,698 123,836
Due from other governmental agencies - 100,000 100,000
Prepayments and inventories 123,548 1,357,348 1,480,896 Total current assets 15,256,841 53,124,104 68,380,945
Noncurrent assets:

Capital assets:

Depreciable buildings, property, equipment and infrastructure, net - 56,522,763 56,522,763 Total assets 15,256,841 109,646,867 124,903,708
Deferred Outflows of Resources:

Deferred pensions 113,962 1,367,767 1,481,729
Deferred other post-employment benefits 13,556 179,939 193,495 Total deferred outflows of resources 127,518 1,547,706 1,675,224 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 379,730 2,913,322 3,293,052 Liability Claims payable 3,229,000 - 3,229,000
Workers' compensation claims 9,044,000 - 9,044,000
Compensated absences payable - 205,627 205,627
Total current liabilities 12,652,730 3,118,949 15,771,679 Noncurrent liabilities:

Workers' compensation claims 51,177,000 - 51,177,000
Liability Claims Payable 7,871,000 - 7,871,000
Compensated absences payable 76,796 381,154 457,950
Net pension liability 251,642 6,916,294 7,167,936
Net other post-employment benefits liability 36,951 490,448 527,399 Total noncurrent liabilities 59,413,389 7,787,896 67,201,285 Total liabilities 72,066,119 10,906,845 82,972,964
Deferred Inflows of Resources:

Deferred pensions 261,332 2,421,781 2,683,113
Deferred other post-employment benefits 65,004 862,781 927,785 Total deferred inflows of resources 326,336 3,284,562 3,610,898 Net Position:

Net investment in capital assets (7,871,000) 56,522,763 48,651,763 Unrestricted (49,137,096) 40,480,403 (8,656,693)
Total net position $(57,008,096) $97,003,166 $39,995,070 147

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CITY OF BAKERSFIELD
Combining Statement of Activities and Changes in Net Position All Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Self-
Insurance
Equipment
Management Total
Operating revenues:

Intergovernmental $ - $ 100,000 $ 100,000
Charges for services 16,964,312 37,457,158 54,421,470
Cost recoveries 1,793,520 56,546 1,850,066
Miscellaneous 32,395 46,053 78,448
Total operating revenues 18,790,227 37,659,757 56,449,984 Operating expenses:

General and administrative 21,891,041 25,075,938 46,966,979 Workers' compensation payments 8,373,287 - 8,373,287
Claims paid 3,557,263 - 3,557,263
Depreciation and amortization - 9,604,315 9,604,315
Compensated absences 6,454 - 6,454
Total operating expenses 33,828,045 34,680,253 68,508,298 Operating income (loss) (15,037,818) 2,979,504 (12,058,314) Nonoperating revenues (expenses):

Interest income (loss) (198,355) (690,788) (889,143)
Gain/(loss) on sale of capital assets - 289,612 289,612 Income (loss) before transfers
and capital contributions (15,236,173) 2,578,328 (12,657,845) Capital contributions - 1,981,312 1,981,312
Transfers in - 7,267,001 7,267,001
Transfers out (67,563) - (67,563)
Change in net position (15,303,736) 11,826,641 (3,477,095) Total Net Position (Deficit) -
Beginning of Year (41,704,360) 85,176,525 43,472,165
Total Net Position (Deficit) - End of Year $ (57,008,096) $ 97,003,166 $ 39,995,070 148

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CITY OF BAKERSFIELD
Combining Statement of Cash Flows
All Internal Service Funds
For the Fiscal Year Ended June 30, 2022
Self-
Insurance
Equipment
Management Totals
Cash flows from operating activities:

Cash received from:

Customers $ 16,994,968 $ 37,504,548 $ 54,499,516
Prior year reimbursements and cost recoveries 1,793,520 56,546 1,850,066 Cash paid to:

Suppliers (18,420,512) (23,707,302) (42,127,814)
Employees (8,805,698) (4,007,927) (12,813,625)
Net cash provided (used) by operating activities (8,437,722) 9,845,865 1,408,143 Cash flows from noncapital financing activities:

Cash transferred from other funds - 7,267,001 7,267,001 Cash transferred to other funds (67,563) - (67,563)
Net cash provided (used) by noncapital financing activities (67,563) 7,267,001 7,199,438 Cash flows from capital and related financing activities:

Purchase of capital assets - (13,645,398) (13,645,398)
Proceeds from sale of capital assets - 1,421,379 1,421,379 Net cash (used) by capital and related financing activities - (12,224,019) (12,224,019) Cash flows from investing activities:

Interest received 52,225 121,139 173,364
Net increase (decrease) in the fair value of investments (272,689) (871,255) (1,143,944) Net cash provided (used) by investing activities (220,464) (750,116) (970,580) Net increase (decrease) in cash and investments (8,725,749) 4,138,731 (4,587,018) Cash and investments - Beginning of year 23,821,165 47,439,776 71,260,941 Cash and investments - End of year $ 15,095,416 $ 51,578,507 $ 66,673,923 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) $ (15,037,818) $ 2,979,504 $ (12,058,314) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense - 9,604,315 9,604,315
(Increase) decrease in accounts receivable (1,739) (98,663) (100,402) (Increase) decrease in inventories - (222,779) (222,779) Decrease in prepaid items (836) - (836)
Increase (decrease) in accounts payable (39,803) (901,037) (940,840) Increase (decrease) in workers' compensation claims 6,769,000 - 6,769,000 Increase (decrease) in compensated absences 6,454 (46,427) (39,973) Increase (decrease) in net pension liability (365,365) (3,145,983) (3,511,348) Increase (decrease) in deferred outflows/inflows of resources for pensions 270,198 2,286,387 2,556,585 Increase (decrease) in other post-employment benefits liability (48,300) (713,722) (762,022) Increase (decrease) in deferred outflows/inflows of resources for OPEB 10,487 104,270 114,757 Net cash provided (used) by operating activities $ (8,437,722) $ 9,845,865 $ 1,408,143 Noncash investing, capital, and financing activities:

Contribution of equipment from other departments $ - $ 1,981,312 $ 1,981,312 149

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CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
Special
Deposits
Improvement
Districts
Total Custodial
Funds
Assets:

Current assets:

Cash and investments $ 22,368,995 $ 10,385,029 $ 32,754,024 Accounts receivable, net 500 - 500
Interest receivable 1,951 11,961 13,912
Due from other governmental agencies 19,890 28,397 48,287 Total current assets 22,391,336 10,425,387 32,816,723
Total assets 22,391,336 10,425,387 32,816,723
Liabilities:

Payables:

Deposits 22,391,336 7,283,459 29,674,795
Bonds - 2,873,472 2,873,472
Accrued bond interest - 268,456 268,456
Total liabilities 22,391,336 10,425,387 32,816,723
Net Assets:

Held in trust
Individuals, organizations, and other governments $ - $ - $ - 150

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CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2022
Redevelopment
Successor Agency -
Trust
Planning Habitat
Trust
Affordable
Housing Trust
Total
Private Purpose
Trust Funds
Assets:

Current assets:

Cash $ 2,963,729 $ 16,924,600 $ 6,658,573 $ 26,546,902
Interest receivable 4,334 34,542 13,454 52,330
Total current assets 2,968,063 16,959,142 6,672,027 26,599,232 Noncurrent assets:

Land held for resale 60,895 - - 60,895
Total noncurrent assets 60,895 - - 60,895
Total assets 3,028,958 16,959,142 6,672,027 26,660,127
Liabilities:

Payables:

Accounts - 9,800 - 9,800
Advances from grantors and third parties 2,596,376 - - 2,596,376 Bonds 1,915,000 - - 1,915,000
Notes 9,017,606 - - 9,017,606
Total liabilities 13,528,982 9,800 - 13,538,782
Net Position:

Held in trust for:

Individuals, organizations, and other
governments (10,500,024) 16,949,341 6,672,027 13,121,344 Total Net Position $ (10,500,024)$ 16,949,341 $ 6,672,027 $ 13,121,344 151

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CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
June 30, 2022
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Assets:

Cash $ 6,467,106 $ 416,824 $ 6,883,930
Investments
Domestic equities 23,086,958 - 23,086,958
Fixed income 57,882,200 - 57,882,200
Total investments 80,969,158 - 80,969,158
Total assets 87,436,264 416,824 87,853,088
Net Position:

Held in trust for -
Other post-employment benefits 87,436,264 - 87,436,264
Held in trust for -
Pension - 416,824 416,824
Total Net Position $ 87,436,264 $ 416,824 $ 87,853,088
152

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CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Fiscal Year Ended June 30, 2022
Special
Deposits
Improvement
Districts
Total Custodial
Funds
Additions:

Assessment District Contributions $ - $ 3,859,150 $ 3,859,150 Special Deposit Contribution 122,424,259 - 122,424,259
Other Contributions - 3,259,850 3,259,850
Other income - 471,128 471,128
Interest income (loss) - (44,632) (44,632)
Total additions 122,424,259 7,545,496 129,969,755
Deductions:

Obligation retirement - 4,007,062 4,007,062
Other Distributions 122,424,259 2,931,841 125,356,100
Bond - Interest - 606,593 606,593
Total deductions (122,424,259) 7,545,496 129,969,755
Change in net position - - -
Net position - beginning of year - - -
Net position - end of year $ - $ - $ -
153

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CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Fiscal Year Ended June 30, 2022
Redevelopment
Successor Agency -
Trust
Planning Habitat
Trust
Affordable
Housing Trust
Total
Private Purpose
Trust Funds
Additions:

Developer fees $ - $ 963,809 $ - $ 963,809
Successor agency property tax deposits 2,613,738 - - 2,613,738 Intergovernmental - - - -
Charges for services 3,133,725 - - 3,133,725
Other Contributions - - 6,644,357 6,644,357
Other income (8,841) - - (8,841)
Interest income (loss) - 71,040 27,670 98,710
Total additions 5,738,622 1,034,849 6,672,027 13,445,498 Deductions:

Purchase of uninhabited land - 210,870 - 210,870
Obligation retirement 3,662,530 - - 3,662,530
Total deductions 3,662,530 210,870 - 3,873,400
Change in net position 2,076,092 823,979 6,672,027 9,572,098 Net position - beginning of year (12,576,116) 16,125,362 - 3,549,246 Net position - end of year $ (10,500,024)$ 16,949,341 $ 6,672,027 $ 13,121,344 154

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CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Pension and Other Employee Benefit Trust Funds
For the Fiscal Year Ended June 30, 2022
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Additions:

Contributions to pooled investments $ 8,640,002 $ - $ 8,640,002 Interest income (10,149,233) 932 (10,148,301)
Administrative expenses (242,216) - (242,216)
Total additions (1,751,447) 932 (1,750,515)
Deductions:

Benefits 3,072,252 89,274 3,161,526
Change in net position (4,823,699) (88,342) (4,912,041) Beginning of year 92,259,963 505,166 92,765,129
End of year $ 87,436,264 $ 416,824 $ 87,853,088
155

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CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund

REDEVELOPMENT SUCCESSOR AGENCY
Tax Allocation Bonds:
$2,090,000 Tax Allocation Bond to be used for construction of public improvements for new developments on 18th and 19th Streets, and improvements to the Mill Creek Linear Park. The funds were dispersed in July 2009. The interest rate is 7.5%, with payments commencing August 2010 through August 2029. $ 1,205,000 $1,240,000 Tax Allocation Bond to be used for infrastructure improvements for the Mill Creek Linear Park Canal at South Millcreek. The funds were dispersed in July 2009. The interest rate is 7.25%, with payments commencing August 2010 through August 2029. 710,000
Total Bonds $ 1,915,000
Loans/Contracts:
$1,000,000 HUD Section 108 Loan, 2003 (Agency Agreement #RA 03-016) - due in annual principal installments of $27,000 to $82,000 commencing August 1, 2004; interest ranging from 1.61% to 4.76%. $ 160,000
$1,600,000 HUD Section 108 Loan, 2005 (Agency Agreement #RA 06-020) for construction of Fire Station No. 5 - due in annual principal installments of $58,000 to $137,000 commencing August 1, 2009; interest ranging from 4.96% to 5.77%. 609,000 $3,750,000 HUD Section 108 Loan, 2007 (Agency Agreement #RA 06-022) Loan proceeds are dedicated to the Mill Creek South Mixed-Use project and will go toward the acquisition and clean-up of a six acre parcel. Due in annual principal installments of $136,000 to $321,000 commencing August 1, 2008; interest ranging from 2.62% to 5.42%. 1,667,000
$10,000,000 Bakersfield Redevelopment Agency Loan with I-bank to help finance the Mill Creek Linear Park and Canal Refurbishment Project. Only $6,933,445 of the loan was dispersed through fiscal year 2009. Annual principal installments of $217,383 to $512,446 commencing on August 1, 2009 through August 2037; interest rate at 3.11%. 6,581,607 Total Loans/Contracts Payable $ 9,017,607
Total Redevelopment Successor Agency $ 10,932,607
156

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CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund
Annual requirements to amortize the principal and interest on long-term debt of Redevelopment Successor Agency at June 30, 2022 is as follows:

Redevelopment Successor Agency (Private Purpose Trust Fund) Year ending Principal Interest
Bonds Loans/Contracts Total Bonds Loans/Contracts Total 2023 $ 185,000 $ 748,696 $ 933,696 $ 135,000 $ 319,993 $ 454,993 2024 200,000 782,762 982,762 120,744 286,280 407,024
2025 215,000 733,142 948,142 105,375 253,131 358,506
2026 230,000 767,845 997,845 88,894 220,549 309,443
2027 245,000 804,881 1,049,881 71,300 186,098 257,398
2028-2032 840,000 2,328,333 3,168,333 96,300 612,005 708,305 2033-2037 - 2,339,502 2,339,502 - 266,038 266,038
2038-2042 - 512,446 512,446 - 7,968 7,968
Totals $ 1,915,000 $ 9,017,607 $ 10,932,607 $ 617,613 $ 2,152,062 $ 2,769,675 157

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Statistical Section
City of Bakersfield
Statistical Section
For the fiscal year ended June 30, 2022
The statistical section of the City of Bakersfield's (City) annual comprehensive financial report presents detailed information as a context for understanding what the information presented in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. Where less than 10 years of data is presented, the information was not available.

Contents Pages
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance measures have changed over time. 159 - 164 Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales tax revenues. 169 - 178 Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future. 179 - 185
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. 186 - 188
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. 193 - 192 158

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CITY OF BAKERSFIELD
Net Position by Component (1)
Last Ten Fiscal Years
Fiscal Year
2013 2014 2015(2) 2016(2)
Governmental Activities:

Net investment in capital assets $ 1,233,782,805 $ 1,279,657,792 $ 1,285,115,859 $ 1,304,906,456 Restricted for:

Capital improvements 16,246,571 21,015,837 22,112,200 21,988,624 Unrestricted 172,822,236 213,670,245 (70,066,811) (86,460,007) Total governmental activities
net position: 1,422,851,612 1,514,343,874 1,237,161,248 1,240,435,073 % change from prior year -1.8 6.0% -22.4% 0.3%
Business-Type Activities:

Net investment in capital assets 642,190,608 647,105,639 648,359,633 665,588,574 Restricted for:

Capital improvements 20,216,599 20,209,227 20,201,556 20,201,947 Unrestricted 107,431,948 109,292,512 78,904,795 79,243,784 Total business-type activities
net position 769,839,155 776,607,378 747,465,984 765,034,305 % change from prior year -0.5% 0.9% -3.9% 2.3%
Primary Government:

Net investment in capital assets 1,875,973,416 1,926,763,431 1,933,475,502 1,970,495,030 Restricted for:

Capital improvements 36,463,170 41,225,064 42,313,756 42,190,571 Unrestricted 280,254,187 322,962,757 8,837,984 (7,216,223) Total primary government
net position $ 2,192,690,773 $ 2,290,951,252 $ 1,984,627,242 $ 2,005,469,378 Total primary government
% change from prior year -1.3% 4.3% -15.4% 1.0%
Notes:
(1) This schedule reports using the accrual basis of accounting. (2) There was a prior period adjustment in Governmental and/or Business-Type Activities for the fiscal year. Numbers have been changed to reflect the restatement.
(3) The current year increase in Governmental Activities net position is primarily due to the Public Safety and Vital Services (PSVS) district tax which is a new source of revenue that was approved by residents in November 2018. 159

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Fiscal Year
2017(2) 2018(2) 2019(2) 2020(2)(3) 2021(2) 2022(2)
$ 1,305,414,611 $ 1,301,334,674 $ 1,316,112,932 $ 1,347,391,281 $ 1,353,461,742 $ 1,369,954,461 20,626,443 20,759,775 18,975,747 15,078,957 15,276,476 21,536,491 (108,783,761) (200,714,582) (193,801,808) (190,673,618) (59,276,481) (39,763,272) 1,217,257,293 1,121,379,867 1,141,286,871 1,171,796,620 1,309,461,737 1,351,727,680 -1.9% -8.5% 2% 3 11.7% 3.2%
670,274,189 700,725,335 720,818,075 735,284,165 746,197,186 754,164,100 20,200,000 20,200,000 20,200,000 20,200,000 20,200,000 20,200,000 85,239,027 107,755,323 107,638,278 105,004,414 113,278,598 106,968,986 775,713,216 828,680,658 848,656,353 860,488,579 879,675,784 881,333,086

1.4% 6% 2 1.4% 2.2% 0.2%
1,976,138,800 2,002,060,009 2,036,931,007 2,082,675,446 2,099,658,928 2,124,118,561 40,826,443 40,959,775 39,175,747 35,278,957 35,476,476 41,736,491 (23,544,734) (92,959,259) (86,163,530) (85,669,204) 54,002,117 67,205,714 $ 1,993,420,509 $ 1,950,060,525 $ 1,989,943,224 $ 2,032,285,199 $ 2,189,137,521 $ 2,233,060,766 -0.6% -2.2% 2% 2 7.7% 2.0%
160

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CITY OF BAKERSFIELD
Change in Net Position (1)
Last Ten Fiscal Years
Fiscal Year
2013 2014 2015 2016
Expenses
Governmental activities:

General government $ 12,919,972 $ 10,274,285 $ 21,956,276 $ 24,203,337 Public safety:

Police 76,310,840 80,192,752 82,573,675 87,314,992
Fire 35,105,188 36,086,851 35,577,067 37,257,146
Public works 162,423,856 104,347,771 158,958,537 176,573,017 Recreation & parks 32,619,041 34,641,180 22,743,488 24,993,400 Development services 11,192,757 9,940,984 9,895,523 10,018,548 Economic/Community development (2) - - - -
Interest on long-term debt 467,848 166,472 164,046 39,729 Total governmental activities expenses 331,039,502 275,650,295 331,868,612 360,400,169 Business-type activities:

Wastewater treatment 40,456,986 41,979,698 41,602,539 38,038,376 Refuse collection 44,364,406 45,336,786 42,860,924 44,067,358 River & agricultural water 5,245,266 5,051,433 4,751,158 4,395,517 Domestic water 21,131,546 25,613,917 25,455,862 25,756,437 General aviation 430,697 462,690 527,279 480,754
Offstreet parking 162,094 160,613 163,840 112,986
Total business-type activities expenses 111,790,995 118,605,137 115,361,602 112,851,428 Total primary government expenses 442,830,497 394,255,432 447,230,214 473,251,597 Program Revenues
Governmental activities:

Charges for services:

General government 4,984,767 5,019,511 3,051,375 6,178,924 Public safety:

Police 2,110,160 2,938,734 2,737,294 3,138,617
Fire 5,361,766 4,937,490 5,784,964 6,375,758
Public works 19,404,900 23,780,578 20,958,923 18,625,200 Recreation & parks 14,324,137 14,348,050 14,336,209 15,665,544 Development services 4,147,598 5,221,585 5,620,567 6,076,072 Operating grants and contributions 19,508,063 11,633,792 12,963,571 11,217,162 Capital grants and contributions 76,471,205 104,071,622 101,313,136 120,303,934 Total governmental activities
program revenues $ 146,312,596 $ 171,951,362 $ 166,766,039 $ 187,581,211 Notes:
(1) This schedule reports using the accrual basis of accounting. (2) Economic/Community Development became a part of Development Services. 161

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CITY OF BAKERSFIELD
Change in Net Position (1) continued
Last Ten Fiscal Years
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 26,395,470 $ 29,731,416 $ 31,112,425 $ 40,385,072 $ 59,796,329 $ 42,511,573 95,723,028 105,006,154 106,340,979 120,286,345 122,380,189 129,728,794 41,364,912 44,560,720 46,537,182 49,284,742 50,309,878 45,764,559 171,911,928 145,529,290 126,435,754 170,924,424 145,038,811 150,281,233 26,888,569 22,613,830 20,685,570 26,172,685 25,111,166 26,118,994 12,159,620 8,533,656 8,221,265 13,409,023 10,230,315 6,956,455 - - - - 8,793,206 50,040,874
33,429 25,060 17,358 7,779 (5,101) 17,809
374,476,956 356,000,126 339,350,533 420,470,070 421,654,793 451,420,291 41,008,233 42,103,648 43,491,976 41,863,203 41,038,194 41,498,952 46,300,746 47,971,215 52,077,032 56,297,122 50,804,453 58,507,299 4,304,663 4,198,037 4,469,652 5,110,204 5,098,760 7,096,442 27,066,771 29,205,225 26,859,329 30,900,781 35,476,633 38,097,963 812,527 671,124 480,368 633,219 548,758 429,865
226,999 233,746 290,799 288,532 309,221 341,910
119,719,939 124,382,995 127,669,156 135,093,061 133,276,019 145,972,431 494,196,895 480,383,121 467,019,689 555,563,131 554,930,812 597,392,722 4,609,597 5,618,886 5,476,706 4,474,539 16,695,951 8,343,684 4,797,619 2,989,023 3,719,138 3,152,452 3,045,346 4,098,823 6,903,928 7,242,490 7,615,334 8,116,341 8,503,888 8,988,190 17,116,439 17,159,857 16,970,725 17,969,450 22,364,612 18,860,054 16,103,058 16,481,750 17,354,482 14,768,875 12,544,657 20,184,327 5,719,860 5,909,456 6,335,650 6,589,380 7,122,586 7,327,904 12,640,678 9,165,593 11,411,248 17,270,805 104,733,729 43,350,105 100,956,230 85,533,310 78,708,716 109,448,244 92,038,360 90,119,811 $ 168,847,409 $ 150,100,365 $ 147,591,999 $ 181,790,086 $ 267,049,129 $ 201,272,898 162

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Fiscal Year
2013 2014 2015 2016
Business-type activities:

Charges for services:

Wastewater treatment $ 30,825,384 $ 31,148,327 $ 31,437,669 $ 32,809,778 Refuse collection 41,812,177 42,100,981 43,447,351 45,865,520 River & agricultural water 3,645,065 4,233,197 3,640,671 2,863,750 Domestic water 23,944,333 24,423,144 22,478,013 20,275,368 General aviation 304,357 303,223 315,351 327,491
Offstreet parking 54,420 67,150 78,807 134,404
Operating grants and contributions 6,243,441 8,601,559 8,749,741 7,283,587 Capital grants and contributions 982,577 17,276,815 7,402,621 16,428,109 Total business-type activities
program revenues 107,811,754 128,154,396 117,550,224 125,988,007 Total primary government
program revenues 254,124,350 300,105,758 284,316,263 313,569,218 Net (Expenses) Revenues:

Governmental activities (184,726,906) (103,698,933) (165,102,573) (172,818,958) Business-type activities (3,979,241) 9,549,259 2,188,622 13,136,579 Total primary government
Net (Expenses) Revenues (188,706,147) (94,149,674) (162,913,951) (159,682,379) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 58,958,525 66,614,853 71,382,809 74,342,784 Sales and use taxes 70,418,028 72,442,177 70,366,255 70,786,792 Other taxes 926,701 988,423 1,177,810 1,176,713
Intergovernmental, unrestricted 181,713 152,400 150,529 149,089 Unrestricted grants and contributions 22,725,966 23,829,193 25,497,714 25,381,927 Investment earnings (loss) (99,546) 948,629 487,532 2,295,536 Miscellaneous 5,187,294 1,683,631 2,173,532 1,613,591
Gain (loss) on sale of property 192,354 36,039 (8,511,599) 826,990 Transfers 840,000 1,489,500 3,584,925 1,352,562
Total Governmental Activities 159,331,035 168,184,845 166,309,507 177,925,984 Business-type activities:

Investment earnings 778,444 2,424,676 1,968,113 1,728,927 Gain (loss) on sale of property 26,866 (4,439,038) 390,791 17,545 Transfers (840,000) (1,489,500) (3,584,925) (1,352,562) Total business-type activities (34,690) (3,503,862) (1,226,021) 393,910 Total primary government 159,296,345 164,680,983 165,083,486 178,319,894 Extraordinary gain (loss) - (936,660) - -
Change in Net Position:

Governmental activities (25,395,871) 64,485,912 1,206,934 5,107,026 Business-type activities (4,013,931) 6,045,397 962,601 13,530,489 Total primary government $ (29,409,802) $ 70,531,309 $ 2,169,535 $ 18,637,515 163

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Fiscal Year
2017 2018 2019 2020 2021 2022
$ 33,037,996 $ 34,036,372 $ 33,916,086 $ 34,356,259 $ 35,011,460 $ 34,009,383 49,502,386 51,119,909 54,158,105 56,834,796 60,544,720 65,874,392 6,712,871 7,039,283 9,643,555 7,203,989 3,886,694 6,432,162 23,232,757 26,491,151 27,744,037 28,624,932 30,211,227 30,921,823 325,116 347,315 318,401 301,933 333,337 314,360
146,250 114,261 160,090 153,884 100,941 116,313
7,173,227 9,047,127 8,406,992 7,587,747 12,105,862 9,583,100 9,741,991 4,913,540 11,977,630 10,120,482 13,829,014 11,757,533 129,872,594 133,108,958 146,324,896 145,184,022 156,023,255 159,009,066 298,720,003 283,209,323 293,916,895 326,974,108 423,072,384 360,281,964 (205,629,547) (205,899,761) (191,758,534) (238,679,984) (154,605,664) (250,147,393) 10,152,655 8,725,963 18,655,740 10,090,961 22,747,236 13,036,635 (195,476,892) (197,173,798) (173,102,794) (228,589,023) (131,858,428) (237,110,758) 77,680,416 79,774,412 83,543,561 85,558,776 92,614,863 96,169,420 65,348,910 72,322,068 94,622,228 148,259,133 180,298,616 201,046,660 1,212,122 1,308,842 1,524,996 1,341,620 1,722,078 2,053,178 169,836 201,875 185,685 308,043 288,061 459,088
24,827,775 25,140,642 25,237,610 24,763,948 25,713,508 28,518,519 283,544 1,295,749 2,708,894 1,707,054 53,432 (5,253,433) 1,707,873 1,754,210 1,474,916 2,670,587 3,642,011 3,627,334 273,364 248,579 101,086 4,060 10,682 9,361
152,000 2,032,654 4,058,397 2,064,005 (11,840,913) (3,720,254) 171,655,840 184,079,031 213,457,373 266,677,226 292,502,338 322,909,873 1,112,586 1,878,973 5,045,825 3,671,948 649,913 (1,924,718) 15,670 20,370 25,454 133,322 35,457 (9,328)
(152,000) (2,032,654) (4,058,397) (2,064,005) (4,073,335) (2,924,103) 976,256 (133,311) 1,012,882 1,741,265 (3,387,965) (4,858,149) 172,632,096 183,945,720 214,470,255 268,418,491 289,114,373 318,051,724 - 54,231,181 - - - -
(33,973,707) (21,820,730) 21,698,839 27,997,242 137,896,674 72,762,480 11,128,911 8,592,652 19,668,622 11,832,226 19,359,271 8,178,486 $ (22,844,796) $ (13,228,078) $ 41,367,461 $ 39,829,468 $ 157,255,945 $ 80,940,966 164

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CITY OF BAKERSFIELD
Fund Balances of Governmental Funds
Last Ten Fiscal Years (1)
2013 2014
Fiscal Year
2015 2016
General Fund
Nonspendable $ 3,372,390 $ 3,181 $ 1,000 $ 1,000
Restricted - - - -
Committed 39,972,694 13,464,704 33,140,376 28,995,204
Assigned 7,694,831 34,586,157 7,254,726 4,042,766
Unassigned 10,865,979 6,502,852 383,987 8,783,314
Subtotal general fund 61,905,894 54,556,894 40,780,089 41,822,284 All Other Governmental Funds
Nonspendable - - 944,356 44,508
Restricted 16,246,571 21,015,837 22,112,200 21,988,624
Committed 56,799,759 62,344,103 80,565,806 64,661,547
Assigned 15,840,236 58,935,265 51,017,356 51,026,114
Unassigned - - - -
Subtotal all other governmental funds 88,886,566 142,295,205 154,639,718 137,720,793 Total governmental fund balance $ 150,792,460 $ 196,852,099 $ 195,419,807 $ 179,543,077 Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.

Source: City Finance Department
165

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2017 2018 2019
Fiscal Year
2020 2021 2022
$ 1,025 $ 1,025 $ 51,479 $ 44,314 $ 38,724 $ 98,463
- - - - - -
32,559,429 29,505,463 27,488,388 49,811,144 66,059,815 86,443,908 3,567,936 2,914,844 22,403,228 18,869,241 30,544,224 34,420,249 3,115,798 7,077,156 4,689,839 - 29,426,960 7,478,680
39,244,188 39,498,488 54,632,934 68,724,699 126,069,723 128,441,300 7,675,326 1,212,183 942,965 968,679 818,589 878,328
20,626,443 20,759,775 18,975,747 15,078,956 68,537,913 26,837,705 67,725,705 68,066,549 83,018,904 141,307,728 155,850,511 184,366,579 37,747,940 46,316,269 28,958,138 56,246,321 102,456,352 126,182,553 - - - - 29,426,960 7,157,759
133,775,414 136,354,776 131,895,754 213,601,684 357,090,325 345,422,924 $ 173,019,602 $ 175,853,264 $ 186,528,688 $ 282,326,383 $ 483,160,048 $ 473,864,224 166

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CITY OF BAKERSFIELD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2013 2014 2015 2016 2017
Revenues:

Taxes $ 159,530,114 $ 163,369,374 $ 168,047,259 $ 171,344,057 $ 168,758,632 Licenses and permits 2,757,307 3,644,027 3,297,396 3,216,872 3,321,133 Intergovernmental 85,698,254 112,509,497 113,170,797 129,091,459 111,232,933 Charges for services 26,237,278 28,308,972 29,643,496 31,225,288 31,530,433 Fines, forfeitures &
assessments 20,697,866 25,732,782 21,984,077 20,337,463 21,325,888 Interest income (loss) (266,411) 1,604,668 1,470,902 2,823,200 591,514 Contributions and donations 1,543,041 251,775 10,390 153,607 294,156 Miscellaneous 8,383,499 4,710,359 9,100,338 6,377,099 3,789,687 Total Revenues 304,580,948 340,131,454 346,724,655 364,569,045 340,844,376 Expenditures:

General government 11,186,274 11,888,465 19,254,079 21,404,144 21,483,266 Police 72,745,830 77,504,268 83,484,871 85,469,207 85,303,925 Fire 33,528,360 34,895,073 36,224,449 36,956,928 37,694,398 Public works 25,274,629 25,744,355 26,828,323 26,936,064 25,826,378 Recreation and parks 25,277,659 26,309,603 18,833,884 18,145,518 18,881,782 Development services 11,994,604 11,321,294 12,231,555 12,068,546 11,861,982 Economic/Community
development(1) - - - - -
Non-departmental 13,338,729 10,726,379 12,736,007 13,348,200 10,724,880 Capital outlay 105,808,610 94,992,545 134,748,520 164,583,100 134,231,542 Debt service:

Principal 378,000 443,124 454,964 489,828 503,828
Interest and fiscal charges 208,424 195,434 252,300 57,115 65,870 Total Expenditures 299,741,119 294,020,540 345,048,952 379,458,650 346,577,851 Excess (deficiency) of revenues over
(under) expenditures 4,839,829 46,110,914 1,675,703 (14,889,605) (5,733,475) Other financing sources (uses):

Notes/certificate proceeds - - - - -
Transfers in 18,164,310 16,069,190 15,963,966 10,049,932 7,686,698 Transfers out (18,898,910) (16,334,090) (17,860,400) (10,158,904) (7,686,698) Reserve transfer to agency funds - - - - -
Extraordinary gain - - - - -
Total other financing
sources (uses) (734,600) (264,900) (1,896,434) (108,972) - Net change in fund balances $ 4,105,229 $ 45,846,014 $ (220,731) $ (14,998,577) $ (5,733,475) Debt service as a percentage of
non-capital expenditures -1.0% 4.0% -13.0% 1.0% -0.6%
Notes:
(1) Economic/Community Development became a part of Development Services.

Source: City Finance Department
167

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Fiscal Year
2018 2019 2020 2021 2022
$ 178,228,594 $ 204,629,052 $ 259,638,738 $ 300,024,833 $ 327,513,037 3,268,134 3,483,935 3,454,071 4,001,187 3,384,880
93,198,441 88,214,967 124,484,134 194,092,532 132,065,048 34,404,377 35,435,981 32,551,009 43,705,171 45,230,702
18,887,330 20,058,536 20,828,104 25,163,614 21,038,680
1,791,980 4,373,028 2,842,822 105,421 (6,142,577)
259,932 372,462 241,524 369,430 209,264
4,342,074 3,294,244 4,712,882 5,436,208 4,803,249
334,380,862 359,862,205 448,753,284 572,898,396 528,102,283 21,883,948 22,849,651 23,763,499 19,876,458 29,410,337
89,209,119 97,029,401 106,465,614 116,398,680 136,388,113 39,299,505 40,616,758 44,793,126 49,371,815 53,004,524
25,798,786 27,310,375 28,993,981 31,703,085 34,664,649
20,215,698 20,358,886 22,214,583 23,357,612 24,994,665
9,419,106 10,415,836 15,810,027 9,375,387 11,903,919
- - - 13,878,647 49,808,331
11,699,947 12,680,999 11,500,076 42,480,433 20,501,031
113,952,709 115,089,647 166,425,210 117,607,121 130,187,708 502,352 635,085 1,227,678 1,216,297 1,317,651
59,324 51,545 41,790 30,499 17,809
332,040,494 347,038,183 421,235,584 425,296,034 492,198,737 2,340,368 12,824,022 27,517,700 147,602,362 35,903,546
- - - - -
7,691,676 13,125,130 47,648,113 46,659,400 870,288
(7,956,681) (13,264,112) (48,092,817) (50,541,564) (79,878,533) - - - - -
- - - - -
(265,005) (138,982) (444,704) (3,882,164) (79,008,245)
$ 2,075,363 $ 12,685,040 $ 27,072,996 $ 143,720,198 $ (43,104,699)

0.2% 0% 0 0.3% 0.3%
168

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CITY OF BAKERSFIELD
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years (1)
Fiscal
Year
General
Property
Taxes
Sales and
Use Taxes
Transient
Occupancy
Taxes
Business
License
Taxes
Utility
Franchise
Taxes
In-Lieu and
Other Taxes Total Taxes
2013 $ 65,696,957 (2) $ 70,418,028 $ 8,274,240 $ 3,372,972 $ 10,733,798 (3) $ 1,034,119 $ 159,530,114 2014 66,614,853 (2) 72,442,178 8,826,003 3,607,558 10,890,359 (3) 988,423 163,369,374 2015 71,382,809 (2) 70,366,255 9,487,984 3,730,720 11,901,681 (3) 1,177,810 168,047,259 2016 74,342,784 (2) 70,786,793 9,450,710 3,904,569 11,682,488 (3) 1,176,713 171,344,057 2017 77,680,416 (2) 65,348,909 9,577,898 3,875,410 11,063,877 (3) 1,212,122 168,758,632 2018 79,774,412 (2) 72,322,068 9,570,855 3,826,518 11,425,899 (3) 1,308,842 178,228,594 2019 83,543,561 (2) 94,622,228 9,943,109 4,043,883 10,951,275 (3) 1,524,996 204,629,052 2020 85,558,776 (2) 48,259,133 8,913,147 3,900,858 11,665,204 (3) 1,341,620 159,638,738 2021 92,614,863 (2) 180,298,616 8,863,710 3,877,882 12,647,684 (3) 1,722,078 300,024,833 2022 96,169,420 201,046,660 11,503,778 3,997,145 0 12,742,856 (3) 2,053,178 327,513,037 Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements. (2) Includes Vehicle License Fee in Lieu revenue.
(3) Includes additional taxes and Utility Surcharge revenues designated by ordinance for road purposes.

Source: City Finance Department
169

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CITY OF BAKERSFIELD
Principal Property Taxpayers
Current Year and Nine Years Ago
2013 2022
Taxpayer
Taxable
Assessed Value Rank
Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed Value Rank
Percentage of
Total Taxable
Assessed
Value
Nestle Dreyers Ice Cream Company
(formerly Nestle Holdings, Inc in 2012) 197,016,094 1 0.95% 169,972,148 1 0.51% Valley Plaza Mall LP (formerly Bakersfield Mall
LLC in 2012) 122,518,768 4 0.59% 142,671,363 2 0.43%
California Water Service Company 141,198,131 3 0.68% 133,306,437 3 0.40% Chevron USA Inc. 182,474,300 2 0.88% 133,348,914 4 0.40% Castle & Cooke CA Inc. 73,293,382 7 0.35% 123,511,903 5 0.37% Walmart Stores Inc/Sam's (Formerly Walmart Real
Estate BSNS Trust in 2012) 72,063,481 5 0.35% 104,467,892 6 0.31% DS Properties 18 (formerly Donahue Schriber Realty
Group LLP in 2013) 62,677,000 10 0.30% 90,800,068 7 0.27% Kaiser (Formerly Kaiser Foundation Health Plan, Inc.
in 2011) 68,251,660 8 0.33% 67,323,597 8 0.20%
Bolthouse Land Company LLC - -% 68,063,573 9 0.20%
GSF Springs Investors LP - -% 64,772,663 10 0.19%
BLC Glenwood Gardens 81,283,461 6 0.39% - -%
State Farm Insurance Company 68,713,308 9 0.33% - -%
Total taxable assessed value of
ten (10) largest taxpayers 1,069,489,585 5.15% 1,098,238,558 %3.28 Total taxable assessed value of other taxpayers 19,722,284,206 94.85% 32,290,505,642 %96.72 Total taxable assessed value of all taxpayers 20,791,773,791 100.00% 33,388,744,200 %100.00 Note:

Related parties grouped together on the original source document (County's list of assessed valuations) are included in the total assessed valuation amount for each taxpayer cited. Unitary and operating nonunitary are excluded as valuation by parcel is no longer available. Secured values only reported.

Source: HDL Coren & Cone, Kern County Assessor 2020-21 Combined Tax Rolls 170

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CITY OF BAKERSFIELD
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Amounts expressed in thousands
Fiscal
Year Secured Less:

Ended
June 30
Residential
Property
Commercial
Property Other Unsecured
Tax Exempt
Real Property
2013 $ 14,698,137 $ 3,904,832 $ 3,268,227 $ 912,300 1,097,928 2014 15,592,995 4,010,392 3,575,805 791,531 1,186,061
2015 17,297,625 4,111,192 3,607,361 819,306 1,230,972
2016 18,495,838 4,238,653 3,749,127 835,424 1,321,877
2017 19,571,365 4,497,923 3,971,042 801,607 1,414,164
2018 20,569,686 4,650,981 4,085,221 767,598 1,451,354
2019 21,611,991 4,826,400 4,206,028 769,171 1,492,778
2020 22,729,432 4,968,389 4,339,072 794,111 1,577,783
2021 23,987,795 5,145,836 4,432,049 805,480 1,645,117
2022 25,334,257 5,244,832 4,468,139 818,232 1,658,484
(1) 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 that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: HDL Coren & Cone, Kern County Assessor 2020-21 Combined Tax Rolls. 171

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Total Taxable Total
Estimated
Actual
Assessed
Value
Direct
Rate
Taxable
Value (1)
21,685,568 0.1924 Unavailable
22,784,662 0.1619 Unavailable
24,604,512 0.1623 Unavailable
25,997,165 0.1616 Unavailable
27,427,773 0.1613 Unavailable
28,622,132 0.1609 Unavailable
29,920,812 0.1607 Unavailable
31,253,221 0.1604 Unavailable
32,726,043 0.1647 Unavailable
34,206,976 0.1641 Unavailable
172

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CITY OF BAKERSFIELD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
2013 2014 2015 2016
Basic County-Wide Levy (1) 1.0000 1.0000 1.0000 1.0000
Overlapping Debt
Bakersfield Refund 1989C & D - - - -
Bakersfield School 0.0681 0.0360 0.0186 0.0339
Beardsley School 0.0499 0.0486 0.0406 0.0480
Edison School Bond 0.0694 0.0687 0.0678 0.0716
Fairfax School 0.0686 0.0607 0.0692 0.0712
Fruitvale School Bonds 0.0614 0.0678 0.0595 0.0591
Greenfield School 0.0826 0.0843 0.0544 0.0445
Kern Community College District 0.0085 0.0126 0.0105 0.0136 Kern County Water Agency 0.0540 0.0569 0.0525 0.0537
Kern High School District 0.0437 0.0392 0.0361 0.0324
Lakeside School 0.0227 0.0283 0.0254 0.0267
Lamont School 0.0615 0.0681 0.0630 0.0657
Norris School 0.0580 0.0500 0.0489 0.0498
Panama Buena Vista School - 0.0194 0.0294 0.0330
Rio Bravo 2008A Ref - - - -
Rio Bravo-Greeley 0.0535 0.0769 0.0649 0.0581
Standard Bond - - 0.0208 0.0219
Standard Bond 2006A 0.0185 0.0152 0.0110 0.0140
Vineland School 07-A 0.0437 0.0418 0.0431 0.0456
Total Direct & Overlapping Tax Rates (2) 1.7641 1.7745 1.7157 1.7428 City Share of 1% Levy (3) 0.1851 0.1839 0.1839 0.1839
Total Direct Rate (4) 0.1924 0.1619 0.1623 0.1616
(1) In 1978 the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.

This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners.
(3) City's share of 1.00% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Educational Revenue Augmentation Fund (ERAF) general fund tax shifts are not included in tax ratio figures. The effective City rate after ERAF is 9.9%. (4) Total Direct Rate is the weighted average of all individual direct rates applied by the City of Bakersfield.

Source: HDL Coren & Cone (Kern County Auditor-Controller's Office) 173

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2017 2018 2019 2020 2021 2022

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
- - - 0.0020 -

0.0204 0.0522 0.0449 0.0379 0.0466 0.0386

0.0723 0.0638 0.0671 0.0659 0.0559 0.0647

0.0706 0.0755 0.0738 0.0644 0.0640 0.0690

0.0631 0.1075 0.1009 0.0743 0.0754 0.0819

0.0516 0.0534 0.0731 0.0525 0.0454 0.0503

0.0438 0.0419 0.0398 0.0678 0.0683 0.0764

0.0132 0.0363 0.0337 0.0330 0.0339 0.0386

0.0585 0.0785 0.0707 0.0812 0.0791 0.0791

0.0260 0.0533 0.0512 0.0532 0.0485 0.0417

0.0236 0.0264 0.0242 0.0250 0.0300 0.0300

0.0681 0.0682 0.0639 0.0659 0.0655 0.0641

0.0565 0.0579 0.0373 0.0391 0.0378 0.0521

0.0243 0.0224 0.0288 0.0558 0.0521 0.0512
- - - - - 0.0081

0.0629 0.0687 0.0517 0.0720 0.0636 0.0623

0.0403 0.0770 0.0602 0.0663 0.0617 0.0807
- - - - - -

0.0441 0.0453 0.0238 0.0437 0.0274 0.0316

1.7393 1.9283 1.8451 1.9000 1.8552 1.9204

0.1839 0.0184 0.1839 0.1839 0.1839 0.1839

0.1613 0.1609 0.1607 0.1604 0.1647 0.1641
174

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CITY OF BAKERSFIELD
Property Tax Levies and Collections
Last Ten Fiscal Years (1)
Collected within the
Fiscal Year of the Levy Total Collections to Date
Fiscal Year
Ended
June 30
Tax Levied
for the
Fiscal Year Amount
Percentage
of Levy
Collections
in Subsequent
Years (2) Amount
Percentage
of Levy (3)
2013 $38,448,465 $ 37,544,318 97.65% $ 159,495 $ 37,703,813 98.06% 2014 39,887,750 39,344,783 98.64% 375,679 39,720,462 99.58% 2015 42,153,405 41,301,939 97.98% 166,794 41,468,733 98.38% 2016 44,309,063 43,455,549 98.07% 254,923 43,710,472 98.65% 2017 47,433,693 46,803,045 98.67% 4,914 46,807,959 98.68% 2018 47,385,467 46,768,741 98.70% 345,147 47,113,888 99.43% 2019 49,577,578 48,864,996 98.56% 696,193 49,561,189 99.97% 2020 47,854,714 49,634,163 103.72% 119,111 49,753,274 103.97% 2021 55,963,993 55,106,304 98.47% 633,958 55,740,262 99.60% 2022 57,429,550 56,309,428 98.05% 888,270 57,197,698 99.60% Notes:
(1) Excludes Redevelopment property tax increment.
(2) Delinquent tax collections do not include interest or penalties. (3) Total collections to date may exceed 100% of annual levy. Delinquent tax collections are recorded in the current levy year as the County of Kern does not give detail as to the levy year for delinquent tax collections. This was confirmed with the County of Kern in 2014.

Source: City Finance Department
175

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CITY OF BAKERSFIELD
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Year
State of
California
Total
Rate
2013 %7.25 %7.25
2014 %7.25 %7.25
2015 %7.25 %7.25
2016 %7.25 %7.25
2017 %7.25 %7.25
2018 %7.25 %7.25
2019 %7.25 %8.25
2020 %7.25 %8.25
2021 %7.25 %8.25
2022 %7.25 %8.25
Note: The City's sales tax rate may be changed with voter approval.

Source: California Department of Tax and Fee Administration 176

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CITY OF BAKERSFIELD
Taxable Sales By Category Market Groups
Last Ten Calendar Years
(in thousands of dollars)
2012 2013 2014 2015 2016
Apparel Stores $ 257,244 $ 266,054 $ 268,897 $ 275,099 $ 281,878 General Merchandise 904,847 903,975 902,944 907,685 893,331 Food Stores 156,572 159,943 172,326 164,207 158,627
Eating and Drinking Places 576,204 610,825 656,379 701,627 724,843 Building Materials 480,146 506,395 544,666 553,276 564,361 Auto Dealers and Supplies 1,144,775 1,220,899 1,315,912 1,355,170 1,346,606 Service Stations 565,777 542,816 528,591 455,773 409,770 Other Retail Stores 756,356 789,548 841,272 816,507 786,449 All Other Outlets 1,985,453 1,895,186 1,938,339 1,558,102 1,467,580 Total $ 6,827,374 $ 6,895,641 $ 7,169,326 $ 6,787,446 $ 6,633,445 Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 177

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2017 2018 2019 2020 2021
$ 287,232 $ 302,599 $ 308,328 $ 242,398 $ 393,266
917,083 950,000 963,148 956,554 1,137,370
158,343 165,416 171,118 198,136 205,844
767,018 802,252 847,033 755,367 1,029,859
581,131 630,907 636,725 733,067 803,738
1,431,179 1,436,629 1,479,028 1,540,188 1,973,459
460,705 530,371 539,165 433,906 618,847
783,220 789,365 773,010 746,515 927,476
1,588,600 1,679,685 1,837,407 2,052,473 2,247,493
$ 6,974,511 $ 7,287,224 $ 7,554,962 $ 7,658,604 $ 9,337,352 178

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CITY OF BAKERSFIELD
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Year
General
Obligations
Bonds
Net
Bonded Debt Total
Ratio of Net
Bonded Debt to
Assessed
Value
Population
(1)
Total
Debt
Per
Capita
2013 $ - $ - $ - %- 359,221 $-
2014 - - - - 367,315 0.00
2015 - - - - 365,504 0.00
2016 - - - - 379,110 0.00
2017 - - - - 383,512 0.00
2018 - - - - 386,839 0.00
2019 - - - - 389,211 0.00
2020 - - - - 392,756 0.00
2021 - - - - 397,392 0.00
2022 - - - - 408,865 0.00
Notes:

Includes all long-term general obligation bonded debt.
(1) State Department of Finance
Source: City Finance Department
179

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180

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CITY OF BAKERSFIELD
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
Revenue Bonds Notes
Certificates of
Participation
Total
Governmental
Activities (3) Revenue Bonds Bonds
2013 $ - $ 4,423,000 $ 22,725,000 $ 27,148,000 $ 201,875,000 $ - 2014 - 4,150,049 20,640,000 24,790,049 200,236,254 -
2015 - 3,932,118 18,460,000 22,392,118 190,545,190 -
2016 - 3,442,290 16,175,000 19,617,290 187,377,613 -
2017 - 2,938,462 13,785,000 16,723,462 174,647,913 -
2018 - 2,584,240 11,275,000 13,859,240 166,998,212 -
2019 - 6,111,476 8,635,000 14,746,476 160,129,574 -
2020 - 4,883,798 5,875,000 10,758,798 138,826,333 -
2021 - 3,995,063 3,000,000 6,995,063 129,974,556 -
2022 - 3,547,669 - 3,547,669 120,697,778 -
Notes:

Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. (1) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Personal income was used for the base of this calculation. Details can be found in the Demographic and Economic Statistics.
(2) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time. Population was used for the base of this calculation. Details can be found in the Demographic and Economic Statistics. (3) Total Governmental Activities and Total Primary Government totals do not include Compensated Absences. (4) As restated.

Source: City Finance Department
181

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Business-Type Activities
Deferred
Bond
Premium Notes
Contracts/
Loans
Capital
Leases (4)
Total
Business-Type
Activities
Total Primary
Government
Percentage
of Personal
Income (1)
(4)
Per
Capita (2)
(4)
$ 6,621,255 $ 6,017,009 $ - $ 21,174,195 $ 235,687,459 $ 262,835,459 %3.34 $732 - 5,264,884 - 20,664,937 226,166,075 250,956,124 %3.11 683 - 4,512,759 246,131 20,135,757 215,439,837 237,831,955 %2.89 651 - 3,760,631 292,503 19,091,567 210,522,314 230,139,604 %2.70 607 - 3,008,504 319,400 18,730,478 196,706,295 213,429,757 %2.45 557 - 2,256,378 368,746 18,315,293 187,938,629 201,797,869 %2.25 522 - 1,504,252 314,215 17,671,298 179,619,339 194,365,815 %2.08 499 - 752,127 355,737 17,000,597 156,934,794 167,693,592 %1.70 427 - 3,000,000 352,970 16,304,875 149,632,401 156,627,464 %1.53 394 - 2,719,697 326,262 - 123,743,737 127,291,406 %1.23 311 182

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CITY OF BAKERSFIELD
Direct and Overlapping Debt (1)
As of June 30, 2022
2021 - 22 Assessed Valuation $ 34,188,663,708
Adjusted Assessed Valuation $ 34,188,663,708
Debt
Outstanding (2)
Estimated
Percentage
Applicable (3)
Estimated Share
of Overlapping
Debt
Overlapping Tax and Assessment Debt
Kern Community College District Safety
Repair and Improvement District $ 94,711,081 34.860 $ 33,016,283 Kern Community College District School
Facilities Improvement District No. 1 151,153,183 34.642 52,362,486 Kern High School District 348,771,209 54.390 189,696,661 Bakersfield City School District 132,831,619 72.259 95,982,800 Beardsley School District 20,889,004 19.707 4,116,596
Edison School District 3,609,341 0.060 2,166
Fairfax School District 8,505,668 28.305 2,407,529
Fruitvale School District 34,259,616 77.134 26,425,812
Greenfield Union School District 47,978,406 86.065 41,292,615 Lakeside Union School District 17,969,527 43.824 7,874,966 Lamont School District 1,375,917 0.017 234
Norris School District 31,116,441 58.574 18,226,144
Panama-Buena Vista Union School District 114,040,000 97.149 110,788,720 Rio Bravo-Greeley Union School District 8,567,288 6.282 538,197 Standard School District 48,075,000 0.694 333,641
Vineland School District 3,535,743 0.0003 11
California Statewide Community Development Authority-Community Facilities District No. 2015-02 10,140,000 100.000 10,140,000 Greenfield Union School District CFD No. 1 & No. 3 14,475,196 100.000 14,475,196 RNR School Financing Authority 117,850,000 75.167 88,584,310 California Statewide Community Development Authority- Assessment District No. 2022-01 824,000 100.000 824,000
Overlapping Tax and Assessment Debt $ 1,210,678,239 $ 697,088,367 Overlapping General Fund Debt
Kern County General Fund Obligations $ 111,722,181 34.423 $ 38,458,126 Kern County Pension Obligations 121,862,067 34.423 41,948,579 Certificates of Participation:

Kern County Board of Education 32,610,000 34.423 11,225,340 Kern County Community College District 24,647,000 31.214 7,693,315 Kern County Community College District Benefit 74,455,000 31.214 23,240,384 Panama-Buena Vista Union School District 50,960,000 97.149 49,507,130 Bakersfield City School District General Fund Obligations 2,389,502 72.259 1,726,630 Fairfax School District General Fund Obligations 1,936,639 28.305 548,166 Rosedale Union School District General Fund Obligations 9,655,000 55.754 5,383,049 Overlapping Tax Increment Debt (Successor Agency) 1,915,000 100.000 1,915,000 Overlapping General Fund Debt $ 432,152,389 $ 181,645,719 Total Overlapping Debt $ 1,642,830,628 $ 878,734,086
Direct Debt
City of Bakersfield
Long-term notes payable $ 3,547,669
Total Direct and Overlapping Debt $ 882,281,755
Notes:
(1) Excluded from this schedule are: (a) all bonds which are not general obligation bonds of the City and (b) general obligation bonds issued for water utility purposes which are payable from Water Fund revenues.
(2) Direct debt is reported net of debt service monies available. Overlapping debt is reported at gross values. (3) Percentage of overlapping agency's assessed valuation located within boundaries of the City.

Source: California Municipal Statistics, Inc. and City Finance Department 183

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CITY OF BAKERSFIELD
Computation of Legal Debt Margin
June 30, 2022
Legislation does not mandate a debt limit for the City of Bakersfield. 184

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CITY OF BAKERSFIELD
Pledged - Revenue Coverage
Last Ten Fiscal Years
Wastewater Revenue Bonds
Fiscal
Sewer Charges
and Other
Less:

Operating
Net
Available Debt Service (3)
Year Revenue (1) Expenses (2) Revenue Principal Interest 2012-2013 $ 37,901,401 $ 13,156,437 $ 24,744,964 $ 2,845,000 (7) $ 9,451,151 2.01 2013-2014(5) 39,610,854 14,265,421 25,345,433 3,260,000 (7) 9,959,591 1.92 2014-2015 40,386,623 14,195,887 26,190,736 4,360,000 (7) 8,744,990 2.00 2015-2016 39,111,557 14,765,141 24,346,416 5,475,000 (7) 3,694,732 2.66 2016-2017 39,078,787 14,796,170 24,282,617 6,055,000 (7) 6,557,105 1.93 2017- 2018(8) 42,356,491 17,519,378 24,837,113 5,975,000 6,270,503 2.03 2018-2019(8) 43,043,488 17,062,586 25,980,902 5,525,000 6,344,225 2.19 2019-2020(9) 42,531,887 18,800,960 23,730,927 17,948,753 2,849,736 1.14 2020-2021 45,430,671 16,266,552 29,164,119 7,245,000 4,841,040 2.41 2021-2022 39,891,258 16,353,050 23,538,208 7,670,000 4,458,627 1.94 Notes:

Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

Operating expenses do not include interest or depreciation expenses. (1) Includes amounts for connection fees, interest funded in bond issue and principal portion of lease revenues. (2) Does not include the General Obligation Bonds reported in Enterprise Funds. Operating expenses exclude depreciation expense. (3) Issued Sewer Revenue Bonds, Series 2007A and 2007B in August of 2007. (4) Minimum coverage requirement on the Wastewater Revenue bonds is 1.25. (5) Previous report included arbitrage expenses. Revenue has been corrected. (6) In addition to the normal debt service amount referenced above, there was a partial bond call of $18,730,000 approved by the City Council to reduce the principal balance of the 2007B bond down to $25 million. Sewer revenue bonds 2007B were refunded in January 2012 (Series 2012A) to change the liquidity provider from Dexia to JP Morgan Chase.
(7) In addition to the normal debt service referenced above, City Council approved partial bond calls of $5 million each year to reduce the principal balance of Sewer Revenue Bonds Series 2012A.
(8) Partial refunding of Sewer Revenue Bonds Series 2007A in July 2015 (Series 2015A). (9) Corrected Operating Expenses Amount entered previously entered incorrectly.

Source: City Finance Department
185

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CITY OF BAKERSFIELD
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Population (1)
Personal
Income (2)
(millions)
Per Capita
Personal
Income (2)
Median
Age (3)
Education Level
as a % of
Population having
Formal Schooling
(3) (4)
Elementary
School
Enrollment
Estimated
Unemployment
Rate (%) (5)
2012-2013 359,221 $ 7,862 $ 21,887 29.8 77.8 23,422 8.40% 2013-2014 367,315 8,074 21,980 30.0 78.2 24,012 7.90%
2014-2015 365,504 8,228 22,512 30.1 78.5 24,232 9.30%
2015-2016 379,110 8,532 22,505 30.2 79.7 24,267 9.10%
2016-2017 383,512 8,713 22,718 30.4 79.6 24,299 9.20%
2017-2018 386,839 8,965 23,175 30.4 79.6 26,513 7.80%
2018-2019 389,211 9,333 23,980 30.5 80.0 26,491 5.50%
2019-2020(6) 392,756 9,890 25,180 30.7 80.4 26,590 5.30% 2020-2021 397,392 10,227 25,734 30.8 80.1 N/A 11.20% 2021-2022 408,865 10,374 25,372 31.0 81.4 N/A 8.00% Notes:
(1) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time. (2) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Information is for Bakersfield Metropolitan area. Effective 2008-2009 information now includes Delano area.
(3) U.S. Census Bureau estimates as available for Bakersfield Metropolitan area. (4) This column shows the percent of the City population 25 years and older who are high school graduates or higher. (5) State of California Employment Development Department (Data shown is for Kern County). (6) Elementary School Enrollment numbers for 2017-18 restated due to new data collection techniques by the Department of Education. 186

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CITY OF BAKERSFIELD
Principal Employers (1)
Current Year and Nine Years Ago
2013 2022
Employer Employees Rank
Percent
of Total City
Employment Employees Rank
Percent
of Total City
Employment
County of Kern (1) N/A 7,655 1 %4.52
Kern High School District (1) 4,832 2 %2.85
Bakersfield City School District 4,041 3 %2.38
Dignity Health 3,432 4 %2.03
Bolthouse Farms 2,775 5 %1.64
Panama-Buena Vista Union School
District 2,459 6 %1.45
Kern Medical Center 2,400 7 %1.42
Adventist Health Bakersfield 1,812 8 %1.07
City of Bakersfield 1,718 9 %1.01
Kern County Superintendent of
Schools 1,665 10 %0.98
Others 136,711 %80.65
Total N/A - 169,500 %100.00
(1) Not all employees are employed within the Bakersfield City Limits.

Source: City Finance Department.

Total number of employed persons in Bakersfield provided by EDD Labor Force Data.

Note: Only current data is available.
187

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188

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CITY OF BAKERSFIELD
Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018
Function
Governmental activities:

General government 110 119 126 123 123 124
Public safety
Police
Officers 389 394 404 404 407 407
Civilians 137 143 148 148 148 151
Fire
Firefighters and officers 177 177 177 177 177 177
Civilians 21 22 22 22 22 23
Public works 250 254 248 244 243 247
Community services 153 150 150 146 146 148
Community development 65 63 65 63 63 63
Development services - - - - - -
Economic/Community dev. - - - - - -
Business-type activities:

Wastewater treatment 57 59 59 59 59 61
Refuse collection 106 107 107 107 108 109
River & Agricultural Water (1) 28 28 28 28 29 29
General aviation - - - - - -
Offstreet parking - - - - - -
Total 1,493 1,516 1,534 1,521 1,525 1,539
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department
189

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2019 2020 2021 2022
143 159 158 181
450 479 501 502
176 193 216 229
184 200 199 199
23 25 25 33
261 293 277 305
163 175 180 203
- - - -
79 92 125 104
- - - 30
62 64 62 49
111 112 115 122
30 32 32 32
- - - -
- - - -
1,682 1,824 1,890 1,989
190

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CITY OF BAKERSFIELD
Property Value, Construction and Bank Deposits (1)
Last Ten Calendar Years
Commercial
Construction
Residential
Construction
Other
Construction
No. of
Units Value
No. of
Units Value Value
2012 49 $ 20,807 1,122 $ 259,851 $ 108,877
2013 69 15,710 1,336 312,569 157,024
2014 89 56,320 1,435 389,715 203,722
2015 70 49,806 1,391 384,819 377,510
2016 115 63,714 1,387 370,956 338,559
2017 59 61,034 1,132 332,652 312,316
2018 93 83,187 1,089 321,454 278,079
2019 111 48,155 1,421 400,718 321,560
2020 64 47,473 1,632 526,899 348,540
2021 43 34,698 1,130 349,562 418,846
Notes:
(1) Property value and bank deposits reported in thousands. (2) Federal Deposit Insurance Corporation
(3) Construction units and values are based on a 12 month calendar year. June 30, 2022 data reflects the 2021 calendar year.

Source: City Finance Department
191

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Total
Construction
No. of
Units Value
Bank
Deposits (2)
1,171 $ 389,535 $ 5,626,755
1,405 485,303 6,069,764
1,524 649,757 6,421,302
1,461 812,135 3,759,961
1,502 773,229 7,141,426
1,191 706,002 7,515,635
1,182 682,720 7,702,403
1,532 770,433 8,675,464
1,696 922,912 9,960,173
1,173 803,106 10,379,883
192

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CITY OF BAKERSFIELD
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2013 2014 2015 2016
Function
Public safety - Police
Physical arrests 32,158 37,246 24,254 19,965
Parking violations 6,620 10,499 6,183 4,083
Traffic violations 11,528 15,065 24,154 26,934
Public safety - Fire
Number of calls answered 31,164 32,898 35,117 35,747
Inspections 3,660 4,195 4,978 5,684
Public works
Street resurfacing (lane miles) 127 116 119 79
Refuse collection
Refuse collected (tons/day) 111,420 110,125 102,500 102,800 Recyclables collected (tons/day) 53,350 55,500 78,500 79,100 Recreation & parks
Athletic field permits issued 9,297 9,625 9,046 8,054
Community center,
aquatics/sports admissions 475,619 502,994 527,617 553,831 River & Agricultural water (1)
New connections 701 1,123 1,033 945
Water main breaks 14 4 5 4
Average daily consumption 36,730 39,712 34,973 29,812
(thousands of gallons)
Wastewater treatment
Average daily sewage treatment 32.13 MGD 30.0 MGD 29.9 MGD 28.7 MGD (millions of gallons)
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department
193

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Fiscal Year
2017 2018 2019 2020 2021 2022
13,008 9,502 9,895 8,569 7,190 8,859
3,843 2,238 10,438 14,207 7,297 18,053
24,190 16,548 24,739 21,879 23,679 18,080
38,823 40,945 42,027 44,560 49,465 50,625
6,859 5,649 8,712 8,330 4,694 7,401
70 75 115 90 100 130
103,100 102,200 175,081 177,885 220,259 223,469
79,500 82,700 87,680 89,786 66,956 62,253
7,788 8,224 7,046 4,589 794 2,088
518,432 534,959 542,580 431,568 81,245 255,498
968 500 755 714 675 1,124
4 3 2 3 5 2
33,378 36,128 35,588 40,173 48,247 40,976

29.0 MGD 29.6 MGD 28.9 MGD 29.1 MGD 29.4 MGD 29.9 MGD
194

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CITY OF BAKERSFIELD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2013 2014 2015 2016
Function
Land (1)
Area 150.01 150.18 150.18 150.97
Public safety
Police stations/substations 4 3 3 3
Fire stations 14 14 14 14
Refuse collection
Collection trucks 55 57 57 57
Public works
Streets (miles) (2) 1,424 1,441 1,441 1,553
Streetlights 16,602 16,388 16,486 16,781
Traffic signals 402 410 419 420
Recreation & parks
Parks acreage 595 623 769 769
Parks 59 59 59 59
Swimming pools 4 4 4 4
Community centers 3 3 3 3
River & Agricultural Water (3)
Water mains (miles) (2) 503 505 515 525
Fire hydrants (2) 10,581 10,723 10,853 11,117
Wastewater treatment
Sanitary sewers (miles) 1,061 1,063 1,072 1,076
Storm sewers (miles) 263 265 268 269
Maximum daily treatment capacity 57 MGD 57 MGD 57 MGD 57 MGD (millions of gallons)
Notes:
(1) Reported in square miles.
(2) Corrected numbers for all years up to and including FY2011-12 with more accurate information provided. (3) Departmental name change in FY2018-19 from Domestic & Agricultural water to River & Agricultural water.

Source: City Finance Department
195

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Fiscal Year
2017 2018 2019 2020 2021 2022
151.10 151.10 151.14 151.15 151.15 151.64
3 3 3 3 3 2
14 14 14 14 14 14
57 57 67 74 66 71
1,596 1,505 1,506 1,517 1,537 1,492
17,042 18,632 18,635 18,639 19,095 19,850
426 428 431 433 440 447
776 810 810 828 662 662
59 59 59 61 61 61
4 4 4 4 4 4
3 3 3 3 3 3
535 589 592 608 615 620
11,130 11,396 11,467 11,697 11,814 11,966
1,077 1,077 1,086 1,090 1,099 1,107
270 270 274 276 280 284
57 MGD 57 MGD 57 MGD 57 MGD 57 MGD 57 MGD
196

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CITY OF BAKERSFIELD
Schedule of Insurance in Force
June 30, 2022
Excess Workers' Compensation Statutory Limit with a $500,000 self-insured retention.

Excess Liability $ 55,000,000 Limit with a $1,000,000 self-insured retention.

Combination Crime $ 5,000,000 Coverage limit, $25,000 deductible.

Airport Operations $ 10,000,000 Coverage limit.

Aircraft $ 10,000,000 Coverage limit.

Cyber Liability $ 25,000,000 Aggregate limit $50,000 self-insured retention Fiduciary Liability $ 5,000,000
Physical Loss:

All Risk Property and Boiler $ 600,000,000
Coverage on buildings and contents subject to $5,000
deductible with various sublimits.

Machinery
Auto-Physical Damage
Coverage for vehicles/equipment values up to $250,000
subject to a $10,000 deductible and vehicles/equipment
values about $250,000 subject to a $100,000 deductible
Life and Medical:

Life and Accident $ 2,000
Supervisory & Management employees. Each employee
(basic coverage) and additional insurance equal to annual salary to nearest $1,000.
$ 12,000 Safety employees, each employee (basic coverage). $ 30,000 Miscellaneous employees, each employee (basic coverage).

Medical and Dental Basic coverage plus (no lifetime maximum) extended benefits of 90% after $750
deductible for medical (Blue Shield)
or Group dental ($50 deductible for United Concordia).

Source: Liability and Physical Loss coverage is provided by the City's Risk Management.

Department. Life and Medical coverage is provided by the City's Human Resource Department. 197

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Insurance Company Policy Number
Expiration
Date Annual Premium
PRISM PRISMPE22 EWC-04 07/01/2023 $ 1,469,700
ACCEL ACC2122BAK71 07/01/2023 4,249,291
National Union Fire ACIP14249761 07/01/2023 17,568
Pik West AAPN14413352002 07/01/2023 3,854
Pik West AACN10687846002 07/01/2023 7,393
Hudson SFD3121120504 10/01/2023 12,510
CSAC PROPERTY2023 03/31/2023 797,860
PRISM B0180FN2233951 06/30/2023 60,000
Voya Financial 0067794-4 12/31/2022
$3.00 per thousand dollar of salary, management
& supervisory $2,000 plus annual salary
maximum benefit $100,000.

Voya Financial 0067794-9 12/31/2022
Safety-$27.30 each permanent employee for
$12,000 coverage.

Voya Financial 0067794-9 12/31/2022
Blue/White Collar Units: $68.38 each permanent
employee for $30,000 coverage.

Blue Shield PPO Health W0054380 12/31/2022 Bi-weekly rate range from $136.17 Blue Shield HMO Health W0054380 to $891.53 per employee for medical Blue Shield Trio Health W0054380 based upon individual's plan coverage and Kaiser Permanente
HMO 132733-1003 plan combination and $9.58 to $62.70
Kaiser Permanente
DHMO 132733-0010 dental. $1.06 to $2.74 for vision
Kaiser Permanente
DHMO 132733-0014 HMO, $1.57 to $4.08 for PPO.

United Concordia
DPPO Dental 920318-000 12/31/2022
United Concordia
DHMO Dental 920318-001
Medical Eye Service
HMO Vision 16269 12/31/2022
Medical Eye Service
PPO Vision 16270
198

Page 220 of 554 ends

199

Page 221 of 554 ends

AGREED UPON CONDITIONS REPORT DESIGNED TO INCREASE

EFFICIENCY, INTERNAL CONTROLS, AND/OR FINANCIAL REPORTING (MANAGEMENT LETTER)

To the Honorable Mayor and
Members of the City Council
City of Bakersfield
Bakersfield, California

In planning and performing our audit of the financial statement s of the City of Bakersfield, California (the City), for the year ended June 30, 2022, in accordance with aud iting standards generally accepted in the United States of America, we considered the City’s internal control structure over financial reporting (internal control) as a basis for designing our auditing procedures for t he purpose of expressing our opinion on the financial statements, but not f or 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.

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 defic iency, or a combination of deficiencies, in internal control, such that ther e is a reasonable possibility t hat a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal c ontrol was for the limited purpo se described in the first paragraph and was not designed to identify all deficiencies in internal control t hat might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material w eaknesses and significant deficiencies may exist that were not identified.

The results of our audit disclosed no recommendations that would result in opportunities for strengthening internal controls and operating efficiencies.

Current Year Agreed Upon Conditions and Responses

None.

Status of Prior Year Recommendations

None.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 20, 2023

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REQUIRED COMMUNICATION IN ACCORDANCE
WITH PROFESSIONAL STANDARDS (SAS 114)

To the Budget and Finance Committee,
Honorable Mayor, and
Members of the City Council
City of Bakersfield
Bakersfield, 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 Bakersfield (the City) for the year ended June 30, 2022. Professional standards require that we pro vide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, as well as certain information relate d to the planned scope and timing of our audit. We have communicated such inform ation in our letter to you dated August 25, 2023. Professional standards also require that we communica te to you the following information related to our audit.

Significant Audit Matters

Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropri ate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. During the year ended June 30, 2022, the City adopted the provisions of Governm ental Accounting Standards Board (GASB) Statement No. 87, Leases; GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period; GASB Statement No. 92, Omnibus 2020; GASB Statement No. 93, Replacement of Interbank Offered Rates; and GASB Statement No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consens us. All significant transactio ns have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial stat ements prepared by management and are based on management’s knowledge and experience about past and c urrent events and assumptions about future events. Certain acc ounting estimates are particula rly 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 in establishing allowances for accounts receivable, estimated date of collection to comply with the pe riod of availability for certai n revenues, estimated net pension liability and related pension expense and deferred inflows of resources and outflows of resources, establishing the net other post- employment benefits (OPEB) liab ility and related OPEB expense and deferred inflows of resources and outflows of resources, ma nagement’s estimate over self- insurance claims liabilities, m anagement estimates for the dete rmination of fair value of

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Investments, and the estimated useful lives of capital assets, which are derived by various methods as detailed in the notes , and management’s estimate of the incremental borrowing rate as the discount rate for leases and the lease term. We evaluated the key factors and assumptions used to develop these estimates in determining that they are re asonable in relation to the financial statements taken as a whole.

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

 Note 2 - Cash and Investments
 Note 5 - Capital Assets
 Note 12 - Pledged Revenues
 Note 13 - Deferred Inflows of Resources
 Note 16 - Employment Retirement Benefits
 Note 17 - Other Post-Employment Benefits (OPEB)
 Note 19 - Risk Management
 Note 20 - Commitments and Contingencies
 Note 23 - Prior Period Adjustments

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

Difficulties Encountered in Performing the Audit
The completion of our audit was delayed because the Annual Comp rehensive Financial Report (ACFR) and certain supporting documentat ion were not available for our review within the anticipated timeline needed to complete the audit timely.

Corrected and Uncorrected Misstatements
Professional standards require u s to accumulate all known and l ikely misstatements identified during the audit, other than those that are clearly trivial, and communica te them to the appropriate level of management. There were no such misstatements detected during our audit.

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, t hat could be significant to the financial statements or the auditor’s report. We are pleased to report th at 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 20, 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 sit uations. If a consultation involves application of an accounting principle to t he City’s financial statements o r a determination of the type of auditor’s opinion that may be expressed on those statements, our professi onal 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 applic ation 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 r elationship and our responses were not a condition to our retention.

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Other Matters

We applied certain limited procedures to Management’s Discussio n and Analysis, the Budgetary Comparison Schedules for the General Fund and Major Special Rev enue Funds, the City’s Retirement Plans’ Schedules of Changes in the Net Pension Liability and Re lated Ratios, the Schedules of Pension Contributions, the Other Post-Em ployment Benefit (OPEB) Plan - Schedule of Changes in the City’s Net OPEB Liability and Related Ratios, and the Schedule of OPEB Con tributions, which are required supplementary information (RSI) that supplement the basic finan cial statements. Our procedures consisted of inquiries of manag ement regarding the methods of p reparing 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 Schedule of Expenditures of Fe deral Awards, Combining and Individual Major and Nonmajor F und Financial Statements and Sch edules, Schedule of Long-Term Debt Recorded in the Private Purpose Trust Fund, and other supplementary information, which accompany the financial statements but are not RSI. With respect to this supp lementary information, we made certain inquiries of management and evaluated the form, content, and me thods of preparing the information to determine that the information co mplies with accounting princip les generally accepted in the United States of America, the method of preparing it has not changed f rom the prior period, and the information is appropriate and complete in relation to our audit of the fin ancial statements. We compared and reconciled the supplementary information to the underlying acco unting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on t he Introductory and Statistic al Sections, which accompany the financial statements but are not R SI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and acc ordingly, we do not express an opinion or provide any assurance on it.

Restriction on Use

This information is intended solely for the information and use of the Budget and Finance Committee, Honorable Mayor, City Council, and management of the City of Ba kersfield and is not intended to be, and should not be, used by anyone other than these specified parties.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 20, 2023

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INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED-UPON PROCEDURES

To the Technical Advisory Committee of the
Bakersfield Subregional Wastewater Management Plan,
the City of Bakersfield, California,
the Kern Sanitation Authority,
and the East Niles Community Services District

We have performed the procedures enumerated below solely to ass ist the City of Bakersfield (the City) in determining compliance with certain provisions of contractual requirements as specified in Agreement 76- 153, as amended by Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106, regarding the Bakersfield Subregional Wastewater Management Plan as of an d for the fiscal year ended June 30, 2022. The City’s management is responsible for the Bakersfield Subregional Wastewater Management Plan and compliance with the aforementioned requirements. The City has agreed to and acknowledged that the procedures performed are appropriate to meet the inten ded purpose of the Bakersfield Subregional Wastewater Management Plan’s compliance requirement s. Additionally, the Technical Advisory Committee (TAC) of the Bakersfield Subregional Wastewa ter Management Plan has agreed to and acknowledged that the procedures performed are appropriate for their purposes. 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 o f this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The provisions of contractual requirements as specified in Agre ement 76-153, as amended by Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106 are as follows:

(A) Section 6: Members and Meetings

Requires the Technical Advisory Committee be comprised of three members, one from each District and one from the City, to meet at least two times a year.

(B) Section 9: Limitations on Vo lume and characteristics of Sewage

Compliance with the limitations and characteristics of sewage a re monitored by the City. In the event that any of the user agencies are in violation, the City will notify them. The Regional Water Quality control Board monitors the plant for compliance with the laws and regulations.

The Technical Advisory Committee is required to review a tentat ive budget during the March board meeting, and it shall be considered at a public meeting o f the City Council. The City Council shall adopt a budget and notify each User agency of allocated costs by July 1st.

(D) Section 13: Distribution of Costs

The capital-related costs of the Bakersfield Subregional Sewage S y s t e m a r e a l l o c a t e d i n proportion to allotted capacity.

The Operation and Maintenance costs are allocated according to use, as determined by the number of single family dwellings.

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(E) Section 21: Wastewater Capital Reserve Fund

Each agency shall share in the deposits to the reserve fund acc ording to their percentages of plant capacity. The balance of t he reserves should not exceed 10% of the treatment plant construction costs.

We reviewed and tested the City’s compliance with the provision s of contractual requirements, as listed n (A) through (E) above. We found the City to be in compliance wi th these provisions and our procedures resulted in no current year findings.

We were engaged by the City to perform this agreed-upon procedu res 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, conduc t an examination or review, the objective of which would be the expression of an opinion or con clusion, respectively, on the City’s compliance with certain provisions of contractual requirements as specified in Agreement 76-153, as amended by Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 8 5-197, and 92-106, regarding the Bakersfield Subregional Wastewater Management Plan. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other ma tters might have come to our attention that would have been reported to you.

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

This report is intended for the information of the Technical Ad visory Committee of the Bakersfield Subregional Wastewater Management Plan, the Kern Sanitation Aut hority, the East Niles Community Services District, the City’s management, appropriate regulatory agencies, and the City Council and is not intended to be used, and should not be used, by anyone other than those specified parties.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 1, 2023

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INDEPENDENT ACCOUNTANT’S REPORT

ON APPLYING AGREED-UPON PROCEDURES

To the Honorable Mayor and Members of the City Council
City of Bakersfield, California

We have performed the procedures enumerated below to the accomp anying Appropriations Limit – Worksheet Six solely to assist management of the City of Bakers field, California, (the City) in determining compliance with the requirements of Section 1.5 of Article XIII-B of the California Constitution for the fiscal year ended June 30, 2022. The City has agreed to and acknowledg ed that the procedures performed are appropriate to meet the intended purpose of the City meeting the requirements of Section 1.5 of Article XIII- B of the California Constitution. Additionally, the League of C alifornia Cities has suggested these procedures and presented these in Article XIII-B Appropriations Limitation Uniform Guidelines as being appropriate for their purposes. T his 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 fo r determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the City’s accompanying Appropriations Limit – W orksheet Six required and determined that the City calculated its 2022 appropriations limit at $483,653,044 and correct annual adjustment factors were adopted by resolution of the City Council.

No exceptions were found as a result of applying the procedure.

2. For the accompanying Appropriations Limit – Worksheet Six, w e added line A, last year’s limit, to line E, total adjustments, and agreed the resulting amount to line F, this year’s limit.

No exceptions were found as a result of applying the procedure.

3. We agreed the current year information presented in the acco mpanying Appropriations Limit – Worksheet Six to the other worksheet described in 1 above.

No exceptions were found as a result of applying the procedure.

4. We agreed the prior year appropriations limit presented in t he accompanying Appropriations Limit – Worksheet Six to the prior year appropriations limit as adopt ed by the City Council during the prior year.

No exceptions were found as a result of applying the procedure.

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Appropriations Limit – Worksheet Six. 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.

We are required to be independent of the City of Bakersfield 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 information and use of management, the Mayor, and the City Council and is not intended to be, and should not be, used by anyone other than those specified parties.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 1, 2023

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CITY OF BAKERSFIELD
APPROPRIATIONS LIMIT – WORKSHEET SIX
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

A. Last year's limit 453,175,722$
B. Adjustment factors:

1. Population % 100.78%

2. Inflation % 105.73%
Total adjustment % 6.554694%
C. Annual adjustment 29,704,282
D. Other adjustments:

Booking fees 160,000
Property tax administration fees 613,040
E. Total adjustments 30,477,322
F. This year's limit 483,653,044$

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Unaudited
June 30, 2022
AEG Management Bakersfield, LLC
Mechanics Bank Arena, Theater and Convention Center
Dignity Health Ampitheatre
Valley Children's Ice Center

Financial Statements

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Assets
Current Assets:

Cash $4,840,029
Accounts Receivable, net of allowance 726,331
Prepaid Expenses 70,189
Event Reimbursables -
Total Current Assets 5,636,549
Fixed Assets, net -
Other Assets -
Total Assets $5,636,549
Liabilities and Members' Capital:

Current Liabilities:

Accounts Payable 493,116.76
Accrued Liabilities 2,758,369
Due to ASM Affiliates (629)
Deferred Revenue, current 1,836,967
Total Current Liabilities 5,087,823
Other Liabilities 250,000
Total Liabilities 5,337,823
Members' Capital:

Capital Contributions -
Retained Earnings - Prior Year (1)
Retained Earnings - Current Year 298,727
Total Members' Capital 298,726
Total Liabilities and Members' Capital $5,636,549

$0
Mechanics Bank Arena, Theater & Convention Center
Consolidated Balance Sheet
As of June 30, 2022

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Mechanics Bank Arena (Consolidated Report including the ATC, Ice Center and Amphitheatre) Statement of Operations
For the 12 months ended June 30, 2022

Y-T-D Y-T-D Y-T-D
Actual Budget Variance ($)

OPERATING REVENUE
Rent Revenue:

Bakersfield Condors $292,042 $300,013 ($7,971)
Arena Concerts $1,006,625 $958,458 $48,167
Arena Family Shows and Feld Shows $147,191 $247,069 ($99,878) Arena Other Events $574,530 $297,000 $277,530
Theater Events $824,097 $815,450 $8,647
Amphitheatre Events $374,621 $542,000 ($167,379)
Convention Center $93,639 $268,700 ($175,061)
TOTAL RENT REVENUE $3,312,746 $3,428,690 ($115,944)
Ice Center Revenue $740,623 $708,100 $32,523
Luxury Suite Revenue $1,000,958 $975,972 $24,986
Naming Rights Revenue - Arena $257,000 $257,000 $0
Naming Rights Revenue - Ice Center $40,000 $40,000 ($0) Naming Rights Revenue - Amphitheatre $125,000 $125,000 ($0) Other Sponsorship Revenue $449,959 $419,730 $30,229
Concessions Revenue:

Bakersfield Condors $343,974 $523,075 ($179,101)
Arena Concerts $598,914 $409,868 $189,046
Arena Family Shows and Feld Shows $56,372 $89,587 ($33,215) Arena Other Events $65,660 $52,868 $12,793
Theater Events $124,866 $150,460 ($25,594)
Amphitheatre Events $49,032 $55,280 ($6,248)
Convention Center $20,066 $32,211 ($12,145)
Ice Center $6,897 $10,000 ($3,103)
Merchandise Revenue $72,889 $129,126 ($56,237)
Parking Revenue $299,527 $326,388 ($26,861)
Facility Fee Revenue $524,947 $530,056 ($5,109)
Event Suite Revenue $124,041 $106,280 $17,761
Ticket Rebate Revenue $1,030,460 $607,304 $423,156
Other Revenues $105,815 $0 $0
TOTAL OPERATING REVENUE $9,349,744 $8,976,994 $266,935
EVENT EXPENSES:

Bakersfield Condors $554,005 $639,500 $85,495
Arena Concerts $1,404,279 $1,453,021 $48,742
Arena Family Shows and Feld Shows $201,194 $282,010 $80,816 Arena Other Events $375,949 $199,800 ($176,149)
Theater Events $770,854 $735,200 ($35,654)
Amphitheatre Events $479,809 $751,700 $271,891
Convention Center $56,195 $143,700 $87,505
TOTAL EVENT EXPENSES $3,842,285 $4,204,931 $362,646
OPERATING EXPENSES:

Administration & HR $1,735,693 $1,331,979 ($403,714)
Operations $732,321 $718,254 ($14,067)
Utilities $833,156 $1,167,000 $333,844
Box Office $111,595 $150,438 $38,843
Sales & Marketing $231,926 $269,218 $37,292
Event Services / Security $273,261 $298,414 $25,153
Finance $212,036 $260,271 $48,235
Ice Center $604,866 $635,098 $30,232
Amphitheater $0 $4,500 $4,500
Management Fees $475,196 $475,196 $0
Other Expenses $0 $10,000 $10,000
TOTAL OPERATING EXPENSES $5,210,051 $5,320,368 $110,317 OPERATING PROFIT / (LOSS) $297,409 ($548,305) $845,714
Interest Income $1,318
ASM Global Share of Losses $0
NET INCOME / (LOSS) TO CITY OF BAKERSFIELD $298,727
($548,305)
$548,305AEG Mgmt Bakersfield (co 329) has an annual net loss guarantee of - $415,718 for all of the facilities taken in the aggregate (section 5 of the mgmt agreement). Losses that exceed this amount are funded by ASM

Page 233 of 554 ends

ATC (Arena, Theater and Convention Center)
Statement of Operations (Rent Revenues Net of Event Expenses) For the 12 months ended June 30, 2022
Annual
Y-T-D Y-T-D Budget Prior Year
Actual Budget 7/1/21 - 6/30/22 7/1/20 - 6/30/21

OPERATING REVENUE
Rent Revenue:

Bakersfield Condors ($261,964) ($339,487) ($339,487) ($296,449) Arena Concerts (397,654) (494,563) (494,563) (111,250)
Arena Family Shows and Feld Shows (54,002) (34,941) (34,942) 10,657 Arena Other Events 198,581 97,200 97,200 51,354
Theater Events 53,243 80,250 80,250 150,550
Convention Center 37,445 125,000 125,000 79,300
Luxury Suite Revenue 1,000,958 975,972 975,972 289,204
Naming Rights Revenue - Arena 257,000 257,000 257,000 257,000 Other Sponsorship Revenue 440,459 419,730 419,730 273,105 Concessions Revenue:

Bakersfield Condors 343,974 523,075 523,075 436,800
Arena Concerts 598,914 409,868 409,868 95,000
Arena Family Shows and Feld Shows 56,372 89,587 89,587 72,843 Arena Other Events 65,660 52,868 52,868 50,356
Theater Events 124,866 150,460 150,460 70,388
Convention Center 20,066 32,211 32,211 10,625
Merchandise Revenue 62,341 113,526 113,526 33,859
Parking Revenue 291,310 320,148 320,148 171,806
Facility Fees 492,455 498,256 498,256 231,390
Event Suite Revenue 121,138 106,280 106,280 53,850
Ticket Rebates and Other Revenue 1,064,105 558,254 558,254 238,895 TOTAL OPERATING REVENUE 4,515,268 3,940,693 3,940,692 2,169,284 Operating Expenses:

Administration & HR 1,735,693 1,331,979 1,331,979 1,163,760 Operations 732,321 718,254 718,254 508,685
Utilities * 833,156 1,167,000 1,167,000 859,600
Box Office 111,595 150,438 150,438 105,857
Sales & Marketing 231,926 269,218 269,218 178,752
Event Services & Security 273,261 298,414 298,414 260,496 Finance 212,036 260,271 260,271 206,373
Management Fees 403,917 403,916 403,916 392,153
Other Expenses 0 10,000 10,000 5,000
Other Expenses 0 0 98,000
TOTAL OPERATING EXPENSES 4,533,905 4,609,490 4,609,490 3,778,675 OPERATING PROFIT / (LOSS) ($18,637) ($668,797) ($668,798) ($1,609,392) (18,637) ATC P&L - Operating Profit/Loss
180,912 Amph P&L - Operating Profit/Loss
135,134 Ice Center P&L - Operating Profit/Loss
297,409 Total Operating Profit/Loss per P&L's
297,409 Total Operating Profit/Loss - Per TB
(0) Difference
Check

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Valley Children's Ice Center
Statement of Operations
For the 12 months ended June 30, 2022
Annual
Y-T-D Y-T-D Budget Prior Year
Actual Budget 7/1/21 - 6/30/22 7/1/20 - 6/30/21

OPERATING REVENUE
Revenue:

General Admissions $253,535 $223,000 $223,000 $111,500
Group Admissions 21,725 40,000 40,000 20,000
Freestyle Admissions 0 2,400 2,400 1,200
Private Ice Rental 271,600 75,000 75,000 45,000
Skating School 85,645 67,000 67,000 33,500
Hockey Leagues - Adult 39,700 65,000 65,000 47,500
Hockey Leagues - Youth 7,624 160,000 160,000 65,000
Skate Edging 0 5,500 5,500 2,750
Parties / B-Day Parties 24,968 35,000 35,000 10,000
Hockey Misc Income (Stick Time, etc.) 32,782 35,200 35,200 17,600 Naming Rights Revenue 40,000 40,000 40,000 40,000
Sponsorship Revenue 0 0 0 0
Concessions Revenue 6,897 10,000 10,000 5,000
Merchandise Revenue - Pro Shop 3,044 8,000 8,000 4,000
TOTAL OPERATING REVENUE 787,520 766,100 766,100 403,050 Operating Expenses:

Credit Card Fees 11,691 16,000 16,000 8,000
Contract Employees (City Employees) 0 0 0 0
Game Officials 0 0 0 0
Hospitality 0 0 0 0
Client Entertainment 0
Music License Fees (ASCAP / BMI) 3,931 3,000 3,000 3,000 City Reimbursement Charges 27,775 15,000 15,000 30000
General Marketing / Advertising 6,042 15,000 15,000 5,000 Website Costs 0 800 800 800
Printing & Design 0 0 0 0
Memberships / Subscriptions 1,369 2,500 2,500 1,250
Miscellaneous 160 500 500 500
Outside Services 6,331 10,000 10,000 5,000
Postage 0 0 0 0
Courier 0 0 0 0
Salaries 143,316 143,333 143,333 90,846
Bonuses 11,421 11,317 11,317 0
Hourly 77,984 148,200 148,200 74,100
Benefits (salary burden) 37,842 30,000 30,000 30,000
Medical Ins 0 0 0 0
Payroll Taxes 4,726 36,948 36,948 20,123
Travel 0 0 0 0
Other Travel 0 0 0 0
Security 0 0 0 0
Office & General Supplies 3,764 7,000 7,000 3,500
Painting Supplies 0 2,000 2,000 1,000
Scoreboard / Video Supplies 0 0 0 0
Security Supplies 0 0 0 0
Signage Supplies 659 0 0 0
Small Tools 2,953 0 0 0
Event Related Eq Supplies 1,321 0 0 0
Janatorial Eq Supplies 289 1,500 1,500 750
Janatorial Chemical Supplies 3,902 2,500 2,500 1,250

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Valley Children's Ice Center
Statement of Operations
For the 12 months ended June 30, 2022
Annual
Y-T-D Y-T-D Budget Prior Year
Actual Budget 7/1/21 - 6/30/22 7/1/20 - 6/30/21
Janitorial Paper Supplies 3,012 3,000 3,000 1,500
Lighting Supplies 0 250 250 125
Locksmith / Door Supplies 0 250 250 125
Security System 3,328 1,500 1,500 1,500
Maintenance Costs 0 0
Building & Ground Maint 0 0 0 0
Other R&M Costs 2,936 2,500 2,500 1,250
Utilities:

Cable / Satelite 0 0 0 0.00
Gas, Fuel & Oil 32,663 17,000 17,000 10,900
Power 217,453 165,000 165,000 97,500
Management Fees 47,520 47,520 47,520 46,136
TOTAL OPERATING EXPENSES 652,386 682,618 682,618 434,156 OPERATING PROFIT / (LOSS) $135,134 $83,482 $83,482 ($31,105)

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Dignity Health Amphitheatre
Statement of Operations
For the 12 months ended June 30, 2022
Annual
Y-T-D Y-T-D Budget Prior Year
Actual Budget 7/1/21 - 6/30/22 7/1/20 - 6/30/21

OPERATING REVENUE
Rent Revenue (Net of Event Expenses):

Amphitheatre Events ($105,188) ($209,700) ($209,700) ($82,000) Naming Rights Revenue - Amphitheatre 125,000 125,000 125,000 125,000 Other Sponsorship Revenue 9,500 0 0 0
Concessions Revenue:

Amphitheatre Events 49,032 55,280 55,280 6,000

Merchandise Revenue 10,548 7,600 7,600 2,000
Parking Revenue / (Expense) 8,216 6,240 6,240 4,000
Facility Fees 32,492 31,800 31,800 10,800
Ticket Rebates and Other Revenue 75,072 49,050 49,050 24,000 TOTAL OPERATING REVENUE 204,672 65,270 65,270 89,800
Operating Expenses:

Utilities 0 0 0 0
Memberships/Subscriptions 0 4,500 4,500 4,500
Management Fees 23,760 23,760 23,760 23,068
TOTAL OPERATING EXPENSES 23,760 28,260 28,260 27,568
OPERATING PROFIT / (LOSS) $180,912 $37,010 $37,010 $62,232

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Mechanics Bank Arena (Consolidated Report including the ATC, Ice Center and Amphitheatre) Statement of Operations (Rent Revenues Net of Event Expenses) For the 12 months ended June 30, 2022
ATC Valley
(Arena, Theater Dignity Health Children's
Consolidated and Conv Ctr.) Amphitheatre Ice Center
YTD Actual YTD Actual YTD Actual YTD Actual

OPERATING REVENUE
Net Rent Revenue:

Bakersfield Condors ($261,964) (261,964)
Arena Concerts (397,654) (397,654)
Arena Family Shows and Feld Shows (54,002) (54,002)
Arena Other Events 198,581 198,581
Theater Events 53,243 53,243
Amphitheatre Events (105,188) (105,188)
Convention Center 37,445 37,445
Ice Center Revenue (admissions, rentals, parties, merch, etc.) 737,580 737,580 Luxury Suite Revenue 1,000,958 1,000,958
Naming Rights Revenue - Arena 257,000 257,000
Naming Rights Revenue - Ice Center 40,000 40,000
Naming Rights Revenue - Amphitheatre 125,000 125,000
Other Sponsorship Revenue 449,959 440,459 9,500 0 Concessions Revenue:

Bakersfield Condors 343,974 343,974
Arena Concerts 598,914 598,914
Arena Family Shows and Feld Shows 56,372 56,372
Arena Other Events 65,660 65,660
Theater Events 124,866 124,866
Amphitheatre Events 49,032 49,032
Convention Center 20,066 20,066
Ice Center 6,897 6,897
Merchandise Revenue 75,932 62,341 10,548 3,044 Parking Revenue 299,527 291,310 8,216
Facility Fees 524,947 492,455 32,492
Event Suite Revenue 121,138 121,138
Ticket Rebates and Other Revenue 1,139,177 1,064,105 75,072 TOTAL OPERATING REVENUE 5,507,460 4,515,268 204,672 787,520 Operating Expenses:

Administration & HR 1,735,693 1,735,693
Operations 732,321 732,321
Utilities 833,156 833,156 0
Box Office 111,595 111,595
Sales & Marketing 231,926 231,926
Security 273,261 273,261
Finance 212,036 212,036
Ice Center 604,866 604,866
Convention Center 0 0
Management Fees 475,196 403,917 23,760 47,520 Other Expenses 0 - 0
TOTAL OPERATING EXPENSES 5,210,051 4,533,905 23,760 652,386 OPERATING PROFIT / (LOSS) $297,409 ($18,637) $180,912 $135,134 ATC Amphitheatre Ice Center Total
OPERATING PROFIT / (LOSS) (18,637) 180,912 135,134 297,409 BENCHMARK OPERATING LOSS (332,575) (62,358) (20,785) (415,718) IMPROVEMENT OVER BENCHMARK 313,938 243,270 155,919 % OF IMPROVEMENT 25% 50% 50%
INCENTIVE PAYMENT TO MANAGER 78,484 (a) 121,635 77,960 278,079 (b) (a) - ATC incentive capped at $100k (25% of base mgmt fee per section 4.2 of mgmt agreement). (b) - Incentive fee to be calculated and recorded in the final month of the fiscal year. If the incentive fee pushes the operating loss beyond the net loss guarantee of -$415,718, it will be reduced accordingly.

Incentive Fee Calculation

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Cash flows from operating activities -
Net income/(loss) 298,727$
Adjustments to reconcile net income/(loss) to net
Cash provided by/(used in) operating activities:

Depreciation and amortization 0
Net changes in operating assets and liabilities:

Accounts receivable 1,661,733
Prepaids (20,330)
Event Reimbursables 0
Other Assets 0
Accounts payable 373,071
Accrued liabilities (66,859)
Deferred revenue (476,818)
Other liabilities 250,000
Due to/from affiliates (1,490,548)
Net cash provided by/(used in) operating activities 528,976 Cash used for investing activities - 0
Capital expenditures 0
Cash used for financing activities -
Capital Contributions (1,561,065)
Distributions 0
Net increase/(decrease) in cash (1,032,089)
Cash at beginning of period 4,311,054
Cash at end of period 3,278,965$
Mechanics Bank Arena
Consolidated Statement of Cash Flows
For the 12 months ended June 30, 2022

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CITY OF BAKERSFIELD

MEASURE N

AGREED-UPON PROCEDURES

FOR THE FISCAL YEAR ENDED
JUNE 30, 2022

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CITY OF BAKERSFIELD

MEASURE N

AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS

Page

Independent Accountant’s Report on Applying Agreed-Upon Procedures ........................................ 1

Schedule of Revenues and Expenditures .......................................................................................... 3

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1 INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED-UPON PROCEDURES

The City of Bakersfield
Bakersfield, California

We have performed the procedures enumerated below related to the City of Bakersfield’s (City) compliance with the guidelines stated in Resolution No. 089-18 regarding Measure N for the fiscal year ended June 30, 2022. The City’s management is responsible for its compliance with those specified requirements. The City has agreed to and acknowledged that the procedures performed ar e appropriate to meet the intended purpose of Measure N compliance requirements as stated in Resol ution No. 089-18. 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.

Our procedures and results are as follows:

1. Obtain a general understandi ng and perform a walk-through over the Measure N/Public Safety and Vital Services (PSVS) revenue collection and expenditure disbursement process.

Result: We performed a walk-through over the Measure N/Public Safety and Vital Services (PSVS) revenue collection and disbursement process by interviewing sta ff and documenting the process.

We found no exceptions as a result of the procedures performed.

2. Identify the Measure N/PSVS ta x revenue sub-fund under the General Fund, including fund name, account code, etc.

Result: The City utilizes three funds under the General Fund fo r the recording of the Measure N funds. We identified sub-fund 014, which tracks the Measure N o ne (1) percentage increase of sales tax revenue. We found no exceptions as a result of the procedures performed.

3. Obtain each Quarterly Statement of Tax Distribution for the fiscal year ended June 30, 2022, for the Measure N/PSVS revenue and reco ncile to the revenue reporte d in the general ledger. In addition, verify that the revenue was recorded in the correct sub-fund.

Result: We obtained each Quarterly Statement of Tax Distributio n for the fiscal year ended June 30, 2022, for the Measure N/PSVS revenue and reconciled it to the revenue reported in the general ledger. In addition, we were abl e to verify that the revenue wa s recorded in the correct sub-fund.

We found no exceptions as a result of the procedures performed.

4. Obtain the Measure N/PSVS ex penditure report under the sub-f und and select samples of disbursements for testing.

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2 Result: We obtained the expenditures report under the sub-fund 014 and the sub-fund 312 that are used to record Measure N/PSVS ex penditures and selected a sampl e of 40 payroll and 40 nonpayroll expenditures.

5. Test sampled Measure N/PSVS expenditure items to make sure t hey are in compliance with Measure N requirements.

Result: We tested the 40 payroll and 40 nonpayroll expenditures selected as noted in procedure 4 and tested to ensure they were in compliance with the Measure N requirements. We found no exceptions as a result of the procedures performed.

6. Produce a schedule of revenue s and expenditures for the Measure N/PSVS sub-fund.

Result: The schedule is attached to this report.

We were engaged by the City to perform this agreed-upon procedu res engagement and conducted our engagement in accordance with atte station standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, r espectively, on the City’s compliance with the specified requirements in Resolution No. 089-18 regarding Measure N. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

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 information and use of t he City and is not intended to be, and should not be, used by anyone other than this specified party.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
January 18, 2024

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This schedule is prepared using the modified accrual basis of accounting. 3 CITY OF BAKERSFIELD

MEASURE N

SCHEDULE OF REVENUES AND EXPENDITURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

REVENUES:

Sales and Use Taxes 102,281,086 $
Charges for Services 498,662
Interest Income (1,623,149)
Other Income 275,360
Total Revenues 101,431,959
EXPENDITURES:

General Government 3,179,449
Public Safety - Police and Fire 31,232,120
Public Works 2,613,766
Parks and recreation 1,603,544
Development Services 3,156,394
Capital Outlay 14,165,759
Total Expenditures 55,951,032
OTHER FINANCING SOURCES (USES):

Transfers In 39,122,381
Transfers Out (55,274,481)
Total Other Financing Sources (Uses) (16,152,100) $

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CITY OF BAKERSFIELD, CALIFORNIA

SINGLE AUDIT REPORTS

FOR THE YEAR ENDED JUNE 30, 2022

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CITY OF BAKERSFIELD, CALIFORNIA

SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS

Page

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................. 1

Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance ................................ 3

Schedule of Expenditures of Federal Awards .................................................................................... 6

Notes to Schedule of Expenditures of Federal Awards ..................................................................... 8

Schedule of Findings and Questioned Costs ..................................................................................... 13

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1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and
Members of the City Council
City of Bakersfield, California

We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bakersfield, California (the City), as of and for t he year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 20, 2023.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpo se of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing the ir 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 the re is a reasonable possibility that a material misstatement of the City’s financial statements will not be pre vented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combinati on of deficiencies, in internal control that is less severe than a material weakness, yet important eno ugh to merit attention by those charged with governance.

Our consideration of internal c ontrol was for the limited purpo se described in the first paragraph of this section and was not designed to i dentify all deficiencies in in ternal control that might be material weaknesses or significant deficiencies. Given these limitations , during our audit we did not identify any deficiencies in internal control that we consider to be materia l weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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2 Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance wit h certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on complian ce with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that a re required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Acc ordingly, this report is not suitable for any other purpose.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 20, 2023

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3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

To the Honorable Mayor and
Members of the City Council
City of Bakersfield, California

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program

We have audited the City of Bakersfield’s (the City) compliance with the types of compliance requirements identified as subject to audit in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the Ci ty’s major federal programs for the fiscal year ended June 30, 2022. The City’s ma jor federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs identified in the summary of auditor’s results section of the a ccompanying schedule of findings and questioned costs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program

We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and t he audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal deter mination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

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4 Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accept ed in the United States of A merica, Government Auditing Standards, and the Uniform Guidance will always detect material noncomplia nce when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepre sentations, or the override of internal control. Noncompliance with the compliance requirements referre d to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City ’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with auditing standards ge nerally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, we:

 Exercise professional judgment and maintain professional skept icism throughout the audit.  Identify and assess the risks of material noncompliance, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compl iance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
 Obtain an understanding of the Ci ty’s internal control over co mpliance relevant to the audit in order to design audit procedures that are appropriate in the ci rcumstances and to test and report on internal control over compliance in accordance with the Unif orm Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit and any significant d eficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or o peration of a control over compliance does not allow management or employees, in the norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance i s a deficiency, or a combination of deficiencies, in internal contr ol over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important eno ugh to merit attention by those charged with governance.

Our consideration of internal cont rol over compliance was for t he limited purpose described in the Auditor’s Responsibilities for t he Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these l imitations, during our audit we did not identify any deficiencies in internal control over compliance t hat we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in in ternal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

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5 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate rema ining fund information of the City, as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statement s, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 20, 2023, which contained unmodified opinions on those financial statements. Our audit wa s conducted for the purpose of forming opinions on the financial statement s that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is pres ented for purposes of additional analysis as required by the Uniform Guidance and is not a requi red part of the basic financial statements.

Such information is the responsibility of management and was de rived from and relates directly to the underlying accounting and other records used to prepare the bas ic financial statements. The information has been subjected to the auditing procedures applied in the au dit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financial statements themselves, and other additional procedures in accor dance with auditing standards generally accepted in the United States of America. In our opinion, the s chedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 20, 2023

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The accompanying notes are an integral part of this schedule. 6 CITY OF BAKERSFIELD, CALIFORNIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022

Federal Grantor/ Assistance Pass-Through
Pass-Through Grantor/ Listing Gran t Identifying Passed Through Fede ral Program Title Numbe r Number to Subrecipients Expenditures U.S. Department of Housing and Urban Development:

Direct Programs:

Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 6,926,566$ Emergency Shelter Grant Program 14.231 N/A - 2,101,130 Housing Opportunities for Persons with AIDS 14.241 N/A - 629,669 Home Investment Partnerships Program 14.239 N/A - 1,460,014 Neighborhood Stabilization Program 14.256 N/A - 99,050 Total U.S. Department of Housing and Urban Development - 11,216,429 U.S. Department of Transportation:

Direct Program:

Airport Improvement Program 20.106 N/A - 560,825 Passed through California Office of Traffic Safety:

State and Community Highway Safety 20.600 PT1478 - 236,978 Passed through California Department of Transportation:

Highway Planning and Construction Grants:

Surface Transportation Program 20.205 STPL-5109 - 5,175,970 Transportation Equity Act 20.205 HTP2IL-5109; PRNS-5109; and NCIIP-5109 - 28,216,137
State Highway Operation and Protection Program (SHOPP) 20.205 ACN HP-P099(591) - 281,626 Highway Bridge Replacement 20.205 BRLSZD-5109 (046) - 4,865,093 Congestion Mitigation and Air Quality Program 20.205 CML-5109 - 2,548,843 Subtotal - Highway Planning and Construction Grants - 41,087,669 Total U.S. Department of Transportation - 41,885,472 U.S. Department of Treasury
Passed through California Department of Finance:

COVID-19: Coronavirus Relief Fund 21.019 N/A 5,422,283 5,422,283 Total U.S. Department of Treasury 5,422,283 5,422,283 U.S. Environmental Protection Agency:

Direct Program:

Brownfields Assessment and Cleanup Cooperative Agreements 66.818 N/A - 18 Total U.S. Environmental Protection Agency - 18 U.S. Department of Homeland Security:

Passed through California Emergency Management Agency:

Disaster Grants - Public Assistance 97.036 FEMA-4305-DR-CA; Cal OES ID:087-91052 - 234,412 Total U.S. Department of Homeland Security - 234,412 Total Expenditures of Federal Awards, Excluding Beginning Loan Balances 5,422,283 $ 58,758,614 $

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The accompanying notes are an integral part of this schedule. 7 CITY OF BAKERSFIELD, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2022

Direct Programs:

Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 10,756$ Home Investment Partnerships Program 14.239 N/A - 16,881,983 Total Beginning Federal Loan Balances with Continuing Complianc e Requirements - 16,892,739 Total Expenditures of Federal Awards, Including Beginning Loan Balances 5,422,283 $ 75,651,353 $ Beginning Federal Loan Balances with Continuing Compliance Requ irements

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8 CITY OF BAKERSFIELD, CALIFORNIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022

NOTE 1 – GENERAL

The accompanying Schedule of Exp enditures of Federal Awards (SE FA) presents the activity of all Federal Financial Assistance programs of the City of Bakersfield, California (the City). As defined in Note 1 of the Notes to the City’s basic financial statements, those financial statements and the accompanying SEFA present the City and its component units, if any, entities for which the City is considered to be financially accountable. Blended component units, although lega lly separate entities, are, in substance, part of the City’s operations and so data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements of the City to emphasize that they are leg ally separate from the City. Each blended and discretely presented component unit has a June 30 year-end. The City’s Annual Comprehensive Financial Report (ACFR) may be obtained at the Finance Department.

Federal financial assistance received directly from Federal age ncies as well as Federal financial assistance passed through other government agencies are included on the SEFA.

NOTE 2 – BASIS OF ACCOUNTING

The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 of the Notes to the City’s basic financial statements.

NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS

Amounts reported in the accompanying schedule, on pages 9-12, a gree with the amounts reported in the related periodic Federal financial reports.

NOTE 4 – INDIRECT COST RATE

The City has elected not to use the 10% de minimis indirect cos t rate allowed under the Uniform Guidance.

NOTE 5 – LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS

Outstanding federally-funded program loans with a continuing co mpliance requirements had the following balances and activities for the year ended June 30, 2022:

Assistance Balance Balance
Listing Number Program Title June 30, 2021 Increase Decrease June 30 , 2022

14.218 Community Development Block
Grants/Entitlement Grants 10,756$ - $ - $ 10,756$

14.239 Home Investment Partnerships Program 16,881,983 - 158,674 16,723,309 Total 16,892,739$ - $ 158,674$ 16,734,065 $

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9 NOTE 6 – AMOUNT PROVIDED TO SUBRECIPIENTS

The City has provided federal awards to various organizations. The amounts provided to subrecipients are summarized as follows:

Assistance Amount
FEDERAL GRANTOR OR Listing Contract or Provided to
Pass-Through Grantor Federal Progr am Number Subrecipient Program Nu mber Subrecipients California Department of Finance COVID-19: Coronavirus Relief Fu nd 21.019 Kern County Housing Authority 2020-152 5,422,283 $

NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS

The following is a reconciliation of the amounts listed in the SEFA to the City’s basic financial statements:

U.S. Department of Housing and
Urban Development
Community Housing
Development Emergency Opportunities for Home Neighborhood Airport Sta te and Highway Block Grants Shelter Persons Investment Stabilization Improvement Community Planni ng and - Entitlement Grants Grant with AIDS Partnerships Program Program Hig hway Safety Construction Federal Financial
Assistance Recognized 6,778,169$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Total 6,778,169 $ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $

Reimbursable
Disbursement/Expenditure 6,926,566$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Total Reimbursable
Disbursement/Expenditure 6,926,566$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Unpaid Billings as of June 30, 2022 - $ - $ - $ - $ - $ - $ - $ (7,088,561)$ Due from State/Local Governments - - - - - - - - Accrued Revenue June 30, 2022 729,600 1,280,706 - - 99,050 - - 7,088,561 Due from Other Governmental Agencies 729,600$ 1,280,706 $ - $ - $ 99,050$ - $ - $ - $ (Continued)
U.S. Department of Transportation
Federal Grantor/Program Title

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10 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)

U.S. Department of U.S. Environmental U.S. Department
Protection Agency
Disaster Equitable Coronavirus Brownfields Edward Byrne Grants Public Sharing Coronavirus State & Local Fiscal Assessment & Cleanup Memorial Assistance Program Relief Fund Recovery Fund Cooperative Agreement G rant Federal Financial
Assistance Recognized 234,412$ - $ 5,422,283$ - $ 18 $ - $ Total 234,412 $ - $ 5,422,283$ - $ 18 $ - $ Reimbursable
Disbursement/Expenditure 234,412$ - $ 5,422,283$ - $ 18 $ - $ Total Reimbursable
Disbursement/Expenditure 234,412$ - $ 5,422,283$ - $ 18 $ - $ Unpaid Billings as of June 30, 2022 - $ - $ - $ - $ - $ - $ Due from State/Local Governments - - - - - - Accrued Revenue June 30, 2022 - - - - - - Due from Other Governmental Agencies - $ - $ - $ - $ - $ - $ of JusticeHomeland Security
Federal Grantor/Program Title
U.S. Department of Treasury

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11 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)

The following is a reconciliation of the variances between Expenditures and Federal Financial Assistance recognized:

Community Housing
Development Emergency Opportunities for Home Neighborhood Airport Sta te and Highway Block Grants Shelter Persons Investment Stabilization Improvement Community Planni ng and - Entitlement Grants Grant with AIDS Partnerships Program Program Hig hway Safety Construction Federal Financial
Assistance Recognized 6,778,169$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Total 6,778,169 $ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $

Total Disbursement/Expenditure 6,926,566$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Variance of Revenues Recognized
Over/(Under) Expenditures (148,397) - - - - - - - Program Income Used (148,397) - - - - - - - Total - $ - $ - $ - $ - $ - $ - $ - $ (Continued)
Urban Development
Federal Grantor/Program Title
U.S. Department of Housing and
U.S. Department of Transportation

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12 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)

U.S. Department of U.S. Environmental U.S. Department
Protection Agency
Disaster Equitable Coronavirus Brownsfield Edward Byrne Grants Public Sharing Coronaviru s State & Local Fiscal Assessment & Cleanup Memorial Assistance Program Relief Fund Recovery Fund Cooperative Agreement G rant Federal Financial
Assistance Recognized 234,412$ - $ 5,422,283$ - $ 18 $ - $ Total 234,412 $ - $ 5,422,283$ - $ 18 $ - $ Total Disbursement/Expenditure 234,412$ - $ 5,422,283$ - $ 18 $ - $ Variance of Revenues Recognized
Over/(Under) Expenditures - - - - - - Program Income Used - - - - - - Total - $ - $ - $ - $ - $ - $ Federal Grantor/Program Title
of JusticeHomeland Security U.S. Department of Treasury

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13 CITY OF BAKERSFIELD, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
JUNE 30, 2022

SECTION I – SUMMARY OF AUDITOR’S RESULTS

Financial Statements:

Type of auditor's report issued Unmodified

Internal control over financial reporting:
 Material weakness (es) identified? yes x no
 S ignificant deficiencies identified
not considered to be material weaknesses? yes x no

Noncompliance material to financial statements noted? yes x no

Federal Awards:

Internal control over major programs:
 Material weakness (es) identified? yes x no
 S ignificant deficiencies identified
not considered to be material weaknesses? yes x no

Type of auditor's report issued on compliance for
major programs: Unmodified

Any audit findings disclosed that are required to be
reported in accordance with the Uniform Guidance? yes x no

Identification of major programs:

Assistance Listing
Number(s) Name of Federal Program or Cluster

14.231

20.205

Emergency Shelter Grant Program

Highway Planning and Construction Grants

Dollar threshold used to distinguish between Type A
and Type B programs: $2,269,541

Auditee qualified as low-risk auditee? x yes no

SECTION II – FINDINGS RELATING TO FINANCIAL STATEMENTS REQUIRED UNDER

GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS (GAGAS)

None.

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14 SECTION III – FINDINGS AND QUESTION ED COSTS – MAJOR FEDERAL AWA RD PROGRAMS AUDIT

None.

SECTION IV – STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

2021-001
Federal Agency: U.S. Department of Treasury
Assistance Listing Number: 21.019
Program Names: Coronavirus Relief Fund
Compliance Requirement: Subrecipient Monitoring
Award Year: 2020 – 2021
Pass-through entity: None
Questioned Cost: None

Criteria
In accordance with 2 Code of Federal Regulations (CFR) § 200.33 2 (d), the pass-through entity must monitor the activities of the subrecipient as necessary to ensu re that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved.

Condition
The City of Bakersfield (the City) failed to provide subrecipie nt monitoring evidence that substantiates the monitoring has been performed. The City admitted that it did no t conduct subrecipient monitoring procedures for the underlying program.

Cause
There is a lack of manpower to do the monitoring work; the fund ing is new and unexpected. The City failed to designate the personnel overseeing the program. Consequently, the review of detailed records of subrecipients’ program related allowable costs and activities, and onsite monitoring did not occur during the fiscal year.

Effect
The subrecipients’ costs and activities that may not be allowab le could be charged to the program by the City. It was not practical to extend our auditing procedures su fficiently to determine questioned costs, if any, that may have resulted from this finding.

Questioned Costs
None noted.

Repeat Finding
No.

Recommendation
We recommend the City establish internal control policies over the subrecipient monitoring, designate personnel specifically working on the subrecipient monitoring o f the major program of the fiscal year. We also recommend the management keep tracking of the subrecipient monitoring work performed by the designated personnel and retain relevant records and documentation.

Management’s Views and Corrective Action Plan
The City used Coronavirus Relief Funds to provide a training pr ogram for individuals who were unemployed or underemployed because of the negative impacts of the pandemic. The program was put together rather quickly in order to get those individuals bette r employment opportunities as soon as possible. This one-time program was not initially viewed as a p rogram that would require subrecipient monitoring because the training o ccurred over a set time period of less than 9 months and reported outcomes were submitted to the City showing the demographics of those served. Additionally, the program was considered allowable under the funding guidance. As a result of it being a short-term

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15 program with reported outcomes and an acceptable use of these r elief dollars, no other oversight was considered necessary. In the future, any similar relief progra ms contracted out to 3 rd p a r t y s e r v i c e providers will include a subrecipient monitoring segment in the agreement to insure compliance with the Federal grant requirements.

Current Year Status
Implemented.

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ADMINISTRATIVE REPORT

MEETING DATE: March 25, 2024 AGENDA CATEGORY: Staff Report TO: Budget, Finance and Economic Development Committee
FROM: Randy McKeegan, Finance Director
DATE: March 19, 2024
SUBJECT: 2023 CalPERS Pension and 2022 OPEB Trust Updates.

[Document Description]

RECOMMENDATION:

Staff Recommends receive and file presentation.

BACKGROUND:

The City receives annual actuarial reports from the California Public Employees’ Retirement System (CalPERS) for our pension plans and from Segal for our Other Post-Employment Benefit (OPEB) plan, also referred to as a retiree medical plan. The reports are used to determine our annual costs for these benefits along with determining the accumulated liability incurred for these plans. Each year the Finance Department provides a report on these plans to the Budget, Finance and Economic Development Committee.

FISCAL IMPACT:

No immediate fiscal impact

COUNCIL GOAL:

Innovative and Efficient City Government

ATTACHMENTS:

1. OPEB Actuarial 2022

2. PERS Miscellaneous Actuarial 2023

3. PERS Police Actuarial 2023

4. PERS Fire Actuarial 2023

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This report has been prepared at the request of the City of Bakersfield to assist in administering the Plan. This valuation report may not otherwise be copied or reproduced in any form without the consent of the City of Bakersfield and may only be provided to other parties in its entirety. The measurements shown in this actuarial valuation may not be applicable for other purposes. Copyright © 2023byThe Segal Group, Inc. All rights reserved.doctag_01_actuarialvaluation City of Bakersfield Governmental Accounting Standards Board (GASB) Statements 74 and 75 Actuarial Valuation and Review of Other Postemployment Benefits (OPEB) Measured as of June 30, 2022 for Reporting as of June 30, 2023REVISED

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500 North Brand Boulevard, Suite 1400 Glendale, CA 91203-3338 segalco.com T 818.956.6700 November 22, 2023 Mr. Randy McKeegan Finance Director City of Bakersfield 1600 Truxtun Avenue, Suite 200 City of Bakersfield, CA 93301 Dear Mr. McKeegan: We are pleased to submit this Actuarial Valuation and Review of Other Postemployment Benefits (OPEB) as of June 30, 2022 under Governmental Accounting Standards Board Statements No. 74 and No. 75. The report summarizes the actuarial data used in the valuation, discloses the Net OPEB Liability (NOL), and analyzes the preceding year’s experience. This report has been revised to reflect an updated employer contribution amount of $6,207,752 for fiscal year ending June 30, 2022. The employer contribution of $10,207,752 reported in the GASB 74/75 report dated September 26, 2023 has been revised to reflect removal of $4.0 million that was contributed to a separate pension rate stabilization trust. This report was based on the census data provided by City of Bakersfield and the terms of the Plan. Segal does not audit the data provided. The accuracy and comprehensiveness of the data is the responsibility of those supplying the data. Segal, however, does review the data for reasonableness and consistency. The actuarial calculations were completed under the supervision of Mehdi Riazi, FSA, MAAA, FCA, EA. The health care trend and other related medical assumptions have been reviewed by Daniel J. Rhodes, FSA, MAAA. The measurements shown in this actuarial valuation may not be applicable for other purposes. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; and changes in plan provisions or applicable law. The actuarial valuation has been completed in accordance with generally accepted actuarial principles and practices. To the best of our knowledge, the information supplied in this actuarial valuation is complete and accurate. Further, in our opinion, the assumptions used in this valuation and described in Section 3, Exhibit II are reasonably related to the experience of and the expectations for the Plan. The actuarial projections are based on these assumptions and the plan of benefits as summarized in Section 3, Exhibit III. We look forward to reviewing this report with you and to answering any questions. Sincerely, SegalJohnny WuConsulting Actuary

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Table of Contents
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20233 Section 1: Actuarial Valuation Summary .............................................................................................................................................. 4Purpose and basis ........................................................................................................................................................................... 4 Highlights of the valuation ................................................................................................................................................................ 4 Summary of key valuation results .................................................................................................................................................... 6 Important information about actuarial valuations .............................................................................................................................. 7 Section 2: GASB 74/75 Information .................................................................................................................................................... 10 General information about the OPEB plan ..................................................................................................................................... 10 Net OPEB liability .......................................................................................................................................................................... 12 Determination of discount rate and investment rates of return ....................................................................................................... 13 Sensitivity ...................................................................................................................................................................................... 14 Schedule of changes in Net OPEB Liability – Last two fiscal years ................................................................................................ 15 Deferred outflows of resources and deferred inflows of resources ................................................................................................. 17 Schedule of recognition of change in total Net OPEB Liability ....................................................................................................... 18 OPEB expense .............................................................................................................................................................................. 22 Schedule of reconciliation of Net OPEB Liability ............................................................................................................................ 23 Schedule of contributions – Last ten fiscal years ........................................................................................................................... 24 Actuarially Determined Contribution (ADC) .................................................................................................................................... 26 Section 3: Supporting Information ...................................................................................................................................................... 27 Exhibit I: Summary of Participant Data........................................................................................................................................... 27 Exhibit II: Actuarial Assumptions and Actuarial Cost Method ......................................................................................................... 28 Exhibit III: Summary of Plan ........................................................................................................................................................... 41 Appendix A: Definition of Terms..................................................................................................................................................... 44 Appendix B: Accounting Requirements .......................................................................................................................................... 45

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City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20234 Section 1: Actuarial Valuation SummaryPurpose and basisThis report presents the results of our actuarial valuation of City of Bakersfield (the “Employer” or the “City") OPEB plan as of June 30, 2022, required by Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The actuarial computations made are for purposes of fulfilling plan accounting and funding requirements. Determinations for purposes other than meeting financial accounting requirements may be significantly different from the results reported here. This valuation is based on: The benefit provisions of OPEB Plan, as administered by the City; The characteristics of covered active members, terminated vested members, and retired members and beneficiaries as of June 30, 2022, provided by the City; The assets of the Plan as of June 30, 2022, provided by the City; Economic assumptions regarding future salary increases and investment earnings adopted by the City for the June 30, 2022 valuation; and Other actuarial assumptions, regarding employee terminations, retirement, death, etc. adopted by the City for the June 30, 2022 valuation. Highlights of the valuation Accounting and Financial Reporting1. For GASB 75 reporting as of June 30, 2023, the Total OPEB Liability (TOL) and Net OPEB Liability (NOL) were measured as of June 30, 2022. Consistent with the provisions of GASB 75, the assets and liabilities measured as of June 30, 2022 are not adjusted or rolled forward to the June 30, 2023 reporting date. 2. The NOL as of June 30, 2022 is $22,882,795, an increase of $7,295,972, from the prior valuation NOL of $15,586,823. The NOL had been expected to decrease to $11,366,298, due to normal plan operations. The difference between actual and expected NOL was the net effect of: Prior to any assumption changes, the NOL increased by $14,728,015. This was primarily due to investment losses, and to a smaller extent, due to actual benefit payments being higher than the amount projected in the prior valuation.

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Section 1: Actuarial Valuation Summary
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20235 Valuation assumption changes decreased the NOL by $3,211,518. This was a result of updating the trend rates on health costs to reflect actual premium renewals effective January 1, 2023. 3. As of June 30, 2022, the ratio of assets to the Total OPEB Liability (the funded ratio) is 78.49%. This is based on the market value of assets as of the measurement date. 4. The Annual OPEB Expense increased to -$9,691,033 for the measurement period ending June 30, 2022. The expense was -$12,127,334 last year. The increase to the OPEB expense was driven by the new amortization bases related to this year’s investment losses. 5. The discount rates used in the valuations for financial disclosure purposes as of June 30, 2022 is the assumed investment returns on Plan assets (i.e. 4.75%). As contributions that are required to be made by the City to amortize the Unfunded Actuarial Accrued Liability are determined on an actuarial basis, the future Actuarially Determined Contributions and current Plan assets, when projected in accordance with the method prescribed by GASB 74, are expected to be sufficient to make all benefit payments to current members. 6. This report has been revised to reflect an updated employer contribution amount of $6,207,752 for fiscal year ending June 30, 2022. The employer contribution of $10,207,752 reported in the GASB 74/75 report dated September 26, 2023 has been revised to reflect removal of $4.0 million that was contributed to a separate pension rate stabilization trust.

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Section 1: Actuarial Valuation Summary
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20236 Summary of key valuation resultsReporting Date for Employer under GASB 75 June 30, 2023June 30, 2022Measurement Date June 30, 2022June 30, 2021Disclosure elements for Total OPEB Liability $106,405,849 $107,846,786 fiscal year ending Plan Fiduciary Net Position (Assets) 83,523,054 92,259,963 June 30: Net OPEB Liability 22,882,795 15,586,823 OPEB Expense-9,691,033 -12,127,334 Service Cost at Beginning of Year 1,093,753 1,303,741 Schedule of contributions Actuarially determined contributions $2,661,016 $4,636,647 for fiscal year ending Actual contributions1 6,207,752 6,852,674 June 30: Contribution deficiency / (excess) -3,546,736 -2,216,027 Demographic data2:Number of retired members, married dependents and surviving spouses receiving a health subsidy754754Number of active members3428428Key assumptions as of Discount rate4.75% 4.75%June 30: Subsidy trend rates City “Years of Service” Formula 2.25% in 2022, 8.31% in 2023, and 7.00% in 2024 graded to 4.50% over 10 years 7.50% graded to 4.50% over 12 yearsSpecial 42% Contribution–Non-Medicare5.45% in 2022, 8.98% in 2023, and 7.00% in 2024 graded to 4.50% over 10 years 7.50% graded to 4.50% over 12 years–Medicare 6.28% in 2022, 5.61% in 2023, and 6.50% in 2024 graded to 4.50% over 8 years 7.00% graded to 4.50% over 10 years1The employer contributions of $6,207,752 consists of $4,640,002 in trust contributions plus $1,567,750 of benefits paid by the City with its own assets($4,640,002 in total benefit payments paid by the City minus trust reimbursements of $3,072,252). 2Demographic data is as of July 1, 2021 for the June 30, 2021 and June 30, 2022 measurements.3Excludes Miscellaneous, Supervisory, and Management employees hired after February 22, 2006, Fire Safety employees hired after May 5, 2006, and Police Safety employees hired after May 24, 2006.

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Section 1: Actuarial Valuation Summary
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20237 Important information about actuarial valuationsAn actuarial valuation is a budgeting tool with respect to defining future uncertain obligations of a postretirement health plan. As such, it will never forecast the precise future stream of benefit payments. It is an estimated forecast – the actual cost of the plan will be determined by the benefits and expenses paid, not by the actuarial valuation. In order to prepare a valuation, Segal relies on a number of input items. These include: Plan of benefits Plan provisions define the rules that will be used to determine benefit payments, and those rules, or the interpretation of them, may change over time. Even where they appear precise, outside factors may change how they operate. For example, a plan may provide health benefits to post-65 retirees that coordinates with Medicare. If so, changes in the Medicare law or administration may change the plan’s costs without any change in the terms of the plan itself. It is important for the City to keep Segal informed with respect to plan provisions and administrative procedures, and to review the plan summary included in our report to confirm that Segal has correctly interpreted the plan of benefits. Participant data An actuarial valuation for a plan is based on data provided to the actuary by the plan. Segal does not audit such data for completeness or accuracy, other than reviewing it for obvious inconsistencies compared to prior data and other information that appears unreasonable. It is not necessary to have perfect data for an actuarial valuation: the valuation is an estimated forecast, not a prediction. The uncertainties in other factors are such that even perfect data does not produce a “perfect” result. Notwithstanding the above, it is important for Segal to receive the best possible data and to be informed about any known incomplete or inaccurate data. AssetsThe valuation is based on the market value of assets as of the valuation date, as provided by the City.Actuarial assumptionsIn preparing an actuarial valuation, Segal starts by developing a forecast of the benefits to be paid to existing plan participants for the rest of their lives and the lives of their beneficiaries. To determine the future costs of benefits, Segal collects claims, premiums, and enrollment data in order to establish a baseline cost for the valuation measurement, and then develops short- and long-term health care cost trend rates to project increases in costs in future years. This forecast also requires actuarial assumptions as to the probability of death, disability, withdrawal, and retirement of each participant for each year, as well as forecasts of the plan’s benefits for each of those events. The forecasted benefits are then discounted to a present value, typically based on an estimate of the rate of return that will be achieved on the plan’s assets or, if there are no assets, a rate of return based on a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). All of these factors are uncertain and unknowable. Thus, there will be a range of reasonable assumptions, and the results may vary materially based on which assumptions the actuary selects within that range. That is, there is no right answer (except with hindsight). It is important for any user of an actuarial valuation to understand and accept this constraint. The actuarial model necessarily uses approximations and estimates that may lead to significant changes in our results but will have no impact on the actual cost of the plan. In addition, the actuarial assumptions may change over time, and while this can have a significant impact on the reported results, it does not mean that the previous assumptions or results were unreasonable or wrong.

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Section 1: Actuarial Valuation Summary
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20238 The user of Segal’s actuarial valuation (or other actuarial calculations) should keep the following in mind: The actuarial valuation is prepared for use by the City Finance Department. It includes information for compliance with accounting standards and for the plan’s auditor. Segal is not responsible for the use or misuse of its report, particularly by any other party. If the City is aware of any event or trend that was not considered in this valuation that may materially change the results of the valuation, Segal should be advised, so that we can evaluate it. An actuarial valuation is a measurement at a specific date – it is not a prediction of a plan’s future financial condition. Accordingly, Segal did not perform an analysis of the potential range of financial measurements, except where otherwise noted. The actual long-term cost of the plan will be determined by the actual benefits and expenses paid and the actual investment experience of the plan. Sections of this report include actuarial results that are not rounded, but that does not imply precision. Critical events for a plan include, but are not limited to, decisions about changes in benefits and contributions. The basis for such decisions needs to consider many factors such as the risk of changes in plan enrollment, emerging claims experience, health care trend, and investment losses, not just the current valuation results.Segal does not provide investment, legal, accounting, or tax advice. Segal’s valuation is based on our understanding of applicable guidance in these areas and of the plan’s provisions, but they may be subject to alternative interpretations. The City should look to their other advisors for expertise in these areas. While Segal maintains extensive quality assurance procedures, an actuarial valuation involves complex computer models and numerous inputs. In the event that an inaccuracy is discovered after presentation of Segal’s valuation, Segal may revise that valuation or make an appropriate adjustment in the next valuation. Segal’s report shall be deemed to be final and accepted by the City upon delivery and review. The City should notify Segal immediately of any questions or concerns about the final content. As Segal has no discretionary authority with respect to the management or assets of the Plan, it is not a fiduciary in its capacity as actuaries and consultants with respect to the Plan.

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Section 1: Actuarial Valuation Summary
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 20239 Actuarial Certification November 22, 2023 This is to certify that Segal has conducted an actuarial valuation of certain benefit obligations of City of Bakersfield’s other postemployment benefit programs as of June 30, 2022, in accordance with generally accepted actuarial principles and practices. The actuarial calculations presented in this report have been made on a basis consistent with our understanding of GASB Statements 74 and 75 for the determination of the liability for postemployment benefits other than pensions. The actuarial valuation is based on the plan of benefits verified by the Employer and reliance on participant, premium, claims and expense data provided by the Employer or from vendors employed by the Employer. Segal does not audit the data provided. The accuracy and comprehensiveness of the data is the responsibility of those supplying the data. Segal, however, does review the data for reasonableness and consistency. The actuarial computations made are for purposes of fulfilling plan accounting and funding requirements. Determinations for purposes other than meeting financial accounting and funding requirements may be significantly different from the results reported here. Accordingly, additional determinations may be needed for other purposes, such as judging benefit security at termination of the plan, or determining short-term cash flow requirements. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: retiree group benefits program experience or rates of return on assets differing from that anticipated by the assumptions; changes in assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in retiree group benefits program provisions or applicable law. Retiree group benefits models necessarily rely on the use of approximations and estimates, and are sensitive to changes in these approximations and estimates. Small variations in these approximations and estimates may lead to significant changes in actuarial measurements. The scope of the assignment did not include performing an analysis of the potential change of such future measurements except where noted. To the best of our knowledge, this report is complete and accurate and, in our opinion presents the information necessary to comply with GASB Statements 74 and 75 with respect to the benefit obligations addressed. The signing actuaries are members of the Society of Actuaries, the American Academy of Actuaries, and other professional actuarial organizations and collectively meet the “General Qualification Standards for Statements of Actuarial Opinions” to render the actuarial opinion contained herein. Mehdi Riazi, FSA, MAAA, FCA, EA Daniel J. Rhodes, FSA, MAAAVice President and Consulting Actuary Senior Vice President and Consulting ActuaryCertifying Liability Calculations Certifying Claims and Medical Trend Calculations

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City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 202310 Section 2: GASB 74/75 InformationGeneral information about the OPEB plan Plan Description Plan administration. The City provides a single-employer Post-Employment Retiree Medical Benefit Plan in accordance with a resolution approved by the City Council. Two primary plans exist. All employees with a retirement date prior to January 1, 1985 were eligible for benefits upon retirement. Post-1985 employees must retire with fifteen years accumulated service upon retirement to participate. The service requirement is waived for safety employees who retire with a job-related disability. Employees hired after the dates listed below will not participate in either of the retiree health subsidy programs mentioned above. Miscellaneous Employees February 22,2006 Management and SupervisoryMarch 22, 2006Fire SafetyMay 5, 2006Police SafetyMay 24, 2006For employees hired prior to the dates listed above, the City provides lifetime postretirement medical benefit for eligible retirees and qualified dependents with a choice of three medical options. Blue Shield PPO, Kaiser High Deductible Health Plan, and Kaiser Permanente HMO. Mental Health benefits are carved out and provided through Optum Behavioral Health. After reaching eligibility for Medicare, retirees are offered a choice of Blue Shield PPO, Blue Shield Medicare Advantage HMO or Kaiser Senior Advantage HMO. Retirees may also elect dental coverage but must self-pay the premiums for such coverage. Vison coverage is not offered to retirees. Retiree rates are unblended from the employee rates.

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Section 2: GASB 74/75 Information
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 202311 Plan membership. All regular full-time employees of the City hired before the repurchase dates shown above are members of the Plan. At June 30, 2021, OPEB Plan membership consisted of the following: Retired participants currently receiving benefits 754 Active participants 428 Total 1,182 Benefits provided. The City of Bakersfield provides post-employment health insurance benefits to eligible employees. The City contributes 3% of the lowest single-party rate per year of service to a maximum of 30 years (90%). If the dollar amount is greater than the premium for a retiree covered under one of the Medicare Advantage plans, the retiree receives a cash reimbursement of the difference to a maximum of $42.50 per month per person. The City also contributes 42% of the Blue Shield PPO for all retirees who elect the Blue Shield PPO plan, excluding Miscellaneous employees hired after April 1, 1996 and Safety employees hired after April 1, 1998.

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Section 2: GASB 74/75 Information
City of Bakersfield GASB 74/75 Valuation Measured at June 30, 2022, for Employer Reporting for Period Ending June 30, 202312 Net OPEB liabilityReporting Date for Employer under GASB 75 June 30, 2023 June 30, 2022Measurement Date June 30, 2022 June 30, 2021 Components of the Net OPEB LiabilityTotal OPEB Liability $106,405,849 $107,846,786Plan Fiduciary Net Position83,523,05492,259,963Net OPEB Liability 22,882,795 15,586,823Plan Fiduciary Net Position as a percentage of the Total OPEB Liability78.49% 85.55%The NOL was measured as of June 30, 2022 and 2021. Plan Fiduciary Net Position (plan assets) was valued as of the measurement dates and the TOL was determined from actuarial valuations using data as of June 30, 2021. Actuarial assumptions. The TOL as of June 30, 2022 was measured by an actuarial valuation as of June 30, 2021. The non-health related actuarial assumptions used in the June 30, 2022 valuation were based on the December 2021 experience study performed by the CalPERS actuary derived from the data collected during fiscal years 2000 to 2019. In particular, the following actuarial assumptions were applied to all periods included in the measurement: Inflation2.30%Salary increases Ranges from 14.61% to 3.34% based on years of service, including inflation.Investment rate of return4.75%Health care trend rates–City “Years of Service” Formula 2.25% in 2022, 8.31% in 2023, and 7.00% in 2024 graded to 4.50% over 10 years –Special 42% Contribution•Non-Medicare 5.45% in 2022, 8.98% in 2023, and 7.00% in 2024 graded to 4.50% over 10 years •Medicare 6.28% in 2022, 5.61% in 2023, and 6.50% in 2024 graded to 4.50% over 8 years Detailed information regarding all actuarial assumptions can be found in Section 4, Exhibit II.

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Finance, Economic Development and Jobs CommitteeMarch 25, 2024

Finance, Economic Development and Jobs Committee
March 25, 2024