ACFR 2022 - Financial statements Final.pdf — Finance, Economic Development and Jobs Committee, March 25, 2024

A n n u a l C o m p r e h e n s i v e F i n a n c i a l R e p o r t

CITY OF BAKERSFIELD

CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2022
Prepared by the Department of Finance
Randy McKeegan, Finance Director
On the Cover
World War II Memorial
Jastro Park
Photo by Gilbert Vega

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2022
Table of Contents

INTRODUCTORY SECTION PAGE
Table of Contents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Letter of Transmittal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................iv GFOA Certificate of Achievement................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ix Organizational Chart................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................x Elected and Administrative Officers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................xi

FINANCIAL SECTION
Independent Auditor's Report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 Management Discussion and Analysis................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5 Basic Financial Statements
Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................22 Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................24 Governmental Funds:

Balance Sheet................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................28 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................30 Statement of Revenues, Expenditures and Changes in Fund Balances................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................32 Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures and Changes in Fund Balances
to the Government-Wide Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................34 Proprietary Funds:

Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................36 Statement of Revenues, Expenses and Changes in Fund Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................38 Statements of Cash Flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................40 Fiduciary Funds:

Statement of Fiduciary Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................46 Statement of Changes in Fiduciary Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................47 Notes to the Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................49 Required Supplementary Information:

Budgetary Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Budgetary Comparison Schedule for the General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Budgetary Comparison Schedule for the Transient Occupancy Taxes Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Budgetary Comparison Schedule for the Community Development Block Grant Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Budgetary Comparison Schedule for the Gas Tax & Road Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Budgetary Comparison Schedule for the Redevelopment Successor Agency - Housing Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Defined Pension Plan - Schedules of Changes in Net Pension Liability and Related Ratios & Schedules of Plan Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Other Post-Employment Benefits (OPEB) Plan - Schedule of Changes in City's Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ i

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2022
Table of Contents
PAGE
Supplementary Information:

Balance Sheet - General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................126 Schedule of Revenues by Function - General Fund - Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................127 Schedule of Expenditures by Division - General Fund - Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Public Safety and Vital Services Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................129 Special Revenue Funds:

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................138 Capital Projects Funds:

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget & 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:

Combining Statement of Fiduciary Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................150 Combining Statement of Fiduciary Net Position
-Private Purpose Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................151 Combining Statement of Fiduciary Net Position
-Pension & Other Employee Benefit Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................152 Combining Statement of Changes in Fiduciary Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................153 Combining Statement of Changes in Fiduciary Net Position -Private Purpose Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................154 Combining Statement of Changes in Fiduciary Net Position -Pension & Other Employee Benefit Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................155 Long-term Debt Recorded in Private Purpose Trust Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................156 ii

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2022
Table of Contents
PAGE

STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................159 Changes in Net Position - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................161 Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................165 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................167 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................169 Principal Property Taxpayers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................170 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................171 Property Tax Rates/Direct and Overlapping Governments - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................173 Property Taxes Levies and Collections - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................175 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................176 Taxable Sales By Category Market Groups - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................177 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................179 Ratio of Outstanding Debt by Type - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................181 Direct and Overlapping Debt as of June 30, 2022................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................183 Computation of Legal Debt Margin................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................184 Pledged - Revenue Coverage - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................185 Demographic and Economic Statistics - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................186 Principal Employers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................187 Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................189 Property Value, Construction and Bank Deposits - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................191 Operating Indicators by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................193 Capital Asset Statistics by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................195 Schedule of Insurance in Force................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................197 iii
October 31, 2023
Honorable Mayor, City Council, City Manager and Citizens of Bakersfield:

I am once again pleased to present the City of Bakersfield's ( the “City”) Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2022 as required by City’s Municipal Code which states that a complete financial statement and report be prepared at the end of each fiscal year (Section 2.08.020F).

Bakersfield’s Finance Department prepared the report and assumed responsibility for both the accuracy of the data, its completeness and the fairness of the presentation which includes all disclosures. Because the cost of fiscal internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. To the best my knowledge and belief, the enclosed data is accurate in all material aspects and is reported in a manner that presents fairly the financial position and results of operations of the City.

The accompanying financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB).

Brown Armstrong Accountancy Corporation, a firm of licensed certified public accountants, performed the annual independent audit. The goal of the audit was to provide reasonable assurance that the basic financial statements of the City are free of material misstatement. The independent auditor concluded, based upon the audit, that the City’s financial statements for the fiscal year ended June 30, 2022, are fairly stated in conformity with GAAP.

The independent audit of the financial statements of the City is part of a broader financial review that is supplemented by the federally mandated “Single Audit.” This separate review is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair representation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards.

These reports are available in the City’s separately issued Single Audit Report and may be obtained from the City’s website.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and A nalysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Bakersfield’s MD&A c an be found immediately following the report of the independent auditors, beginning on page 4 of the financial section.
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GENERAL BACKGROUND
The City is located approximately one hundred miles north of Los Angeles in the southern San Joaquin Valley. The City is the County seat for the County of Kern and maintains an incorporated area of 151 square miles with an estimated population of 407,491 as of January 1, 2022. Bakersfield operates under the Council-Manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor and a seven-member Council. The City Council is responsible for passing the ordinances and operating resolutions, passing the annual budget, appointing commissions and committees, and hiring the City Manager, and City Attorney, as well as many other related duties.

The City of Bakersfield is a Charter City founded in 1898 that offers a full range of services including:
• Fire and Police Protection
• Streets and Infrastructure Maintenance
• Planning and Building Services
• Economic and Community Development Services
• Parks and Recreation Services
• River & Agricultural Water and Domestic Water Services • Municipal Airpark - General Aviation
• Refuse Collection
• Wastewater Treatment
This report includes the financial activities of the City and the Bakersfield Successor Agency. A more detailed discussion of the reporting entity is provided in the notes to the financial statements.

MAJOR INITIATIVES
The Thomas Roads Improvement Program (TRIP) is nearing its final phases of the major construction projects funded though there are additional projects designed but are waiting for new funding for construction. The TRIP program uses a combination of local funds, Transportation Impact Fees, and State and Federal road grants, which includes approximately $570 million of Federal earmark funds approved by Congress in 2005. As o f June 30, 2022, the City had two remaining major TRIP projects under construction during the fiscal year including the Centennial Corridor Mainline Freeway ($59.5) Million Budget) and the Centennial Corridor Freeway Connector ($13.2 Million Budget). In addition to current projects under construction, property acquisition and design has begun on the Hageman Flyover segment of the TRIP projects. Supplemental grant awards at both the State and Federal level have resulted in these major projects under construction in the TRIP program to be fully funded, requiring no additional financing or borrowing.

The City of Bakersfield recognized the severe impact of homelessness on the community and undertook several programs and projects designed to address the issues it creates. The landmark homeless project undertaken by the City is the Brundage Lane Navigation Center which opened early in October 2020 and is now providing bridge housing for over 250 unhoused individuals in the area. Last year the facility served more than 780 individuals and found permanent housing for 99 people. Since it opened more than 1,161 unduplicated clients have stayed there and over 140 of those individuals have moved to permanent housing. In addition to this endeavor, the City has established rapid response teams in both the Development Services and Recreations and Parks departments to clean up homeless encampments and address other negative impacts caused by that population. The number of employees assigned to these important teams has increased each year since being established in 2019. The City also continues to fund private clean-up services in the Downtown and Old Town Kern areas of the City.

The City continues to move forward with initiatives to improve financial infrastructure and long-term planning. In the current year, the City began the implementation phase to replace the current Enterprise v
Resource Planning (ERP) software. The existing legacy system was implemented in the mid-1990’s and has passed its useful life. Modern systems would build more efficient operations across all City departments.

The City Council has approved the funding for this project which is expected to be complete in the next 12 months.

FACTORS AFFECTING FINANCIAL CONDITION
Local Economy and Local Budget Issues – The City of Bakersfield is glad to see the impacts of COVID-19 begin to fade in the rearview mirror but with that said, the American Rescue Plan Act (ARPA) funds awarded to the City in 2021 continue to provide benefits to the community. These funds have allowed local governments like Bakersfield to assist the community negatively impacted by the pandemic, fund economic redevelopment, and supplement City operations. The period of availability for ARPA d ollars continues into fiscal year 2024-25 so that stimulus has the potential to backfill some revenues for the City over the next three years.

Property tax revenues grew by 4% in fiscal year 2021-22 and are estimated to increase by an additional

6.6% in fiscal year 2022-23. These tax revenues face some uncertainty as higher interest rates over the last year and next slowing growth in the local housing market. In addition, the State and Federal government’s desire to reduce the economy’s reliance on fossil fuels can negatively impact the local job and housing markets. In 2018, the citizens of Bakersfield approved a new 1% transaction and use tax called the Public Safety and Vital Services ( PSVS) and this newer tax revenue stream has had tremendous positive impacts to the community by adding as estimated $100 million each year. The PSVS funds are budgeted and accounted for separately within a sub-fund of the General Fund and have a special oversight committee made up of nine City residents. It should be noted that the PSVS revenue stream is primarily earmarked for the fulfilling the thirteen established priorities mentioned previously but the City Council can use portions of that sales tax revenue to address economic instability. Like the PSVS tax, the standard Bradley-Burns 1% sales tax has been a steady revenue source for the City but like the PSVS funds, with double digit growth over the last two years. That growth is expected to level off in the upcoming year though and both sales tax sources are expected to be basic flat, with little growth from the prior year.

The City Council adopted Resolution 91-19 on June 28, 2019 to create a more substantial reserve to help mitigate potential financial downturns as well as create potential avenues to address the increasing concern regarding the growing unfunded pension liabilities. This resolution created a five-year plan that would increase the General Fund reserve equal to two months of operational costs, increase the facility replacement reserve, and begin to fund a Section 115 Pension Rate Stabilization Fund. The positive sales tax revenue receipts from the last three years allowed the City to meet that planned two-month operational reserve, establishing the rainy-day reserve balance at the end of the 2020-21 fiscal year and currently sits at over $52 million. The Council continued to fund the City’s Other Post-Employment Benefits (OPEB) costs for retiree medical benefits, maintaining the City of Bakersfield’s position as one of the few entities in California that are making serious progress toward fully funding this long-term obligation.

Retirement costs will continue to escalate for all employee groups and over the next several years are expected to increase by a total of over $30 million by fiscal year 2027-28. Actual CalPERS earnings over the past five years have been 8.6%, 6.7%, 4.7% and 21.3% (-6.1%) respectively. The 21.3% earnings experienced in 2020-21 (14% over the discount rate) prompted CalPERS to reduce the discount rate to

6.8%. This action was required by the State system’s policy that is meant to smooth out the positive effects of the plan’s performance over the subsequent years without which participants would see significant swings in contribution rates. CalPERS estimates the impact of the changes will still create some positive impacts on City pension costs. The loss experienced the very next year will actually generate more of a negative impact on pension costs than the prior year gain positively impacted costs, Analysis shows that the combined effect is an over $52 million net funding loss. vi
Accounting System and Internal Controls - The City's accounting system is organized and operated on a fund basis with each fund treated as a distinct self-balancing accounting entity. Various funds utilized by the City of Bakersfield are fully described in Note 1 of Notes to the Financial Statements. T he City's accounting records for general governmental operations are maintained on a modified accrual basis of accounting, whereby revenues are recognized when measurable and available and expenditures are recognized when materials and services are received. Accounting records for the enterprise and internal service funds are recorded on an accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred.

In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates and judgments by management.

All internal control evaluations occur within the framework described previously. The City's Finance department believes that these internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. However, the City recognizes that even sound internal controls have inherent limitations. Internal controls must be reviewed to ensure that the City’s operating policies and procedures are being adhered to and that the controls are adequate to assure accurate and reliable financial reporting and to safeguard the City’s assets.

Budgetary Controls - T he objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Project length financial plans are adopted for the capital projects funds. The level of budgetary control is established at the fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Unencumbered amounts lapse at year-end. However, encumbrances and certain capital projects are re-appropriated as part of the following year's budget. The 2019-20 City of Bakersfield appropriation limit established as required by state statute was $429,959,287.

Cash Management - The City maintains a cash and investment pool that is available for use by all funds, except the Fire Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as cash and short-term investments. The deposits and investments of the Fire Pension Trust Fund are held separately from other City funds.

The City Council has adopted an investment policy in accordance with California Government Code Sections 53607 and 53646, with a goal to minimize credit and market risks while maintaining a competitive yield on its portfolio. The City is also governed by State statutes authorizing the City to invest in bonds or other evidences of indebtedness of the U.S. Government or any of its agencies and instrumentalities, repurchase agreements and bankers’ acceptances. The pension trust investments are administered separately under Municipal Code Section 2.92, which is within state guidelines.

OTHER INFORMATION
Independent Audit - T he City Charter requires an annual audit by independent certified public accountants. The accounting firm of Brown Armstrong Accountancy Corporation was selected by the City Council in 2022 to perform the audit for a single year with the intent of issuing a multi-year award for the 2022-23 audit.

Awards - T he Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bakersfield for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021, marking the 41st vii
consecutive year Bakersfield has received the GFOA c ertificate. T he Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

Additionally, the City received the Distinguished Budget Presentation Award for the fiscal year beginning July 1, 2022 from the GFOA. The Distinguished Budget Presentation Award judges a government's budget document for compliance with the guidelines established by the National Advisory Council on State and Local Budgeting and best practices of the GFOA.

Acknowledgments - T he preparation of this report in a timely manner could not have been accomplished without the excellent work performed by the entire staff of the Finance Department. I should like to express my appreciation to the members of this Department who assisted and contributed to its preparation. I would also like to thank the Mayor, City Council, and the City Manager for their continued support in planning and conducting the financial operations of the City in a professional and insightful manner.

Respectfully,
Randy McKeegan
Finance Director
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CITY OF BAKERSFIELD
June 30, 2022
City Council
Karen K. Goh ......................................................................................................................Mayor Eric Arias ........................................................................................................Member/Ward 1 Andrae Gonzales ...................................................................................................Member/Ward 2 Ken Weir ............................................................................................................Member/Ward 3 Bob Smith .....................................................................................................Vice Mayor/Ward 4 Bruce Freeman ...................................................................................................Member/Ward 5 Patty Gray ..........................................................................................................Member/Ward 6 Chris Parlier ..........................................................................................................Member/Ward 7 Administrative Personnel
Christian Clegg........................................................................................................City Manager Virginia Gennaro ....................................................................................................City Attorney Christopher Boyle....................................................................... Development Services Director Paul Saldana......................................................Economic & Community Development Director Randy McKeegan .............................................................................................Finance Director Anthony Galagaza........................................................................................................Fire Chief Christi Tenter ....................................................................................Human Resources Director Greg Terry ..............................................................................................................Police Chief Stuart Patteson...............................................................................Acting Public Works Director Rick Anthony .................................................................................Recreation & Parks Director Greg Pronovost.............................................................................Technology Services Director Art Chianello ......................................................................................Water Resources Manager xi

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4 CITY OF BAKERSFIELD
Management's Discussion and Analysis
This discussion and analysis of the City of Bakersfield’s (City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with the accompanying letter of transmittal, the basic financial statements, and the accompanying notes to those financial statements.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $2.2 billion (net position).  The City’s total net position increased by $80.9 million over the prior fiscal year. This increase is broken down with changes to the following components of net position; a $6.3 m illion increase i n restricted net position, a $13.2 million increase i n unrestricted net position, and a $24.6 million decrease in capital assets investment. Prior year information presented in this section does not take into account restatements made to fiscal year 2020-21 balances for prior period adjustments (see Note 23).
 As of the close of the current fiscal year, the City's Governmental Funds reported combined ending fund balances of $345.4 million, an increase o f $25.9 million in comparison with the prior year. Amounts available for spending include restricted, committed, assigned and unassigned fund balances. Of this amount, $26.8 million is restricted by law or externally imposed requirements, $184.4 million is committed for specific purposes, $126.2 million assigned and $7.2 is unassigned and available for appropriations.  Available fund balance for the General Fund increased $2.4 million to $128.4 million, which equates to 44.5% of total General Fund expenditures for the year.
 The City's long-term debt showed a decrease of $13.0 million during the current fiscal year.

Note: Further analysis of the changes and balances highlighted can be found in detail provided in this section. 5 CITY OF BAKERSFIELD
Management's Discussion and Analysis

OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. T his report also contains other supplementary information in addition to the basic financial statements themselves.

GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. T he statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. Additionally, certain eliminations have occurred as prescribed by the Governmental Accounting Standards Board (GASB) statements in regards to interfund activity, payables and receivables.

The Statement of Net Position and the Statement of Activities provide information about the City as a whole and its activities through the fiscal year. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.

These two statements report the City's net position and changes in it. Net position is the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources providing a measurement of the City's financial health. Over time, increases or decreases in the City's net position can be an indicator of whether its overall financial health is improving or deteriorating. Other factors to consider are changes in the City's property tax base and sales tax base. The government-wide financial statements do not include the fiduciary funds, which comprise the private purpose trust funds, pension trust funds, and agency funds. Resources in the fiduciary funds are generally not available to support the City’s own programs.

In the Statement of Net Position and the Statement of Activities, the City's activities are separated as follows:

Governmental activities - T he majority of the City's basic services are reported in this category, including the General Government, Police, Fire, Public Works, Recreation & Parks and Development Services. These activities are generally financed by property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants.

Business-Type activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides.

The City's Water, Wastewater, and Refuse Collection systems along with the Municipal Airport and Offstreet Parking activities are reported in this category.

FUND FINANCIAL STATEMENTS
A fund is a specific grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. Like other state and local government, the fund financial statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. Management establishes many other funds to help control and manage financial resources for particular purposes, or to show that the City is meeting legal responsibilities when using certain taxes, grants, and other revenue.

These financial statements include statements for each of three categories of activities – governmental, proprietary and fiduciary. T he governmental activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The proprietary activities are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary activities are agency funds that also use the economic resources measurement focus but only report a balance sheet. R econciliation of the Governmental Fund Financial Statements to the Government-Wide 6 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Financial Statements are provided to explain the differences created by the integrated approach.

Governmental Funds - M ost of the City's basic services are reported in governmental funds, which focus on the flow of resources into and out of those funds with the balances remaining at year-end available for appropriation. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental Fund financial statements focus on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation schedule following the Governmental Fund financial statement in order to facilitate comparison.

Proprietary Funds - Proprietary Funds are used to report services the City charges to all of its customers, which may include units within the City. Proprietary Funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City's Enterprise Funds report the same functions as the business-type activities reported in the Government-Wide financial statements, but provide more detail and additional information, such as cash flows.

The City uses Internal Service Funds (the second component of Proprietary Funds) to report activities that provide supplies and services for the City's other programs and activities. This includes the City's Self-Insurance and Equipment Management Funds.

These services primarily benefit governmental rather that business-type functions so a majority of the related operation costs are included with the governmental activities in the Government-Wide financial statements.

Fiduciary Funds - T he City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City's fiduciary activities are reported in separate Statements of Fiduciary Net Position. These resources are not available to support the City's programs or operations activities and are thereby excluded from the City's other financial statements. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

NOTES TO THE FINANCIAL STATEMENTS
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund financial statements. The notes can be found starting on page 49 of this report.

OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain “Required Supplementary Information” concerning the City's progress in funding its obligation to provide pension benefits and other post-employment benefits (OPEB) to its employees and budgetary comparison schedules for the General Fund and Special Revenue Major Funds.

This information can be found starting on page 109 of this report. 7 CITY OF BAKERSFIELD
Management's Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As previously noted, net position may serve over time as a useful indicator of a government’s financial position. In the current year, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.2 billion at the close of the reporting period, which is a $80.9 million increase in comparison with the prior year (after restatements).

The largest portion of the City’s net position relates to its net investment in capital assets of $2.1 billion (e.g., land, buildings, machinery, infrastructure and equipment), less any related debt used to acquire those assets that is still outstanding. T hese capital assets are used to provide services to citizens; as such, the assets are not available for future expenditures. The City’s investment in capital assets is reported net of related debt, though it should be noted that the resources needed to repay this debt must be provided from other sources as the capital assets themselves cannot be used to service this debt.

A small portion of the City’s net position, $41.7 million (1.9% of the total), represents resources that are subject to external restrictions on how they may be used.

As in the prior year, the City is able to report positive balances in both categories of net position, whether for the City as a whole or for its separate Governmental and Business-type activities.

The following table presents the components of the government-wide Statement of Net Position at the end of the fiscal year for both 2021 a nd 2022. The governmental and business-type activities columns reflect amounts that have been restated in this financial report. Note 23 explains any prior period adjustments that changed net position.

City of Bakersfield - Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2021 2022 2021 2022 2021 2022
Assets
Current and other assets $ 496,872 $ 532,091 $ 202,421 $ 191,309 $ 699,293 $ 723,400 Capital assets (net) 1,360,457 1,374,428 884,159 882,926 2,244,616 2,257,354 Total assets 1,857,329 1,906,519 1,086,580 1,074,235 2,943,909 2,980,754 Deferred Outflows of Resources 82,233 74,610 14,775 13,356 97,008 87,966 Liabilities
Long-term liabilities
outstanding 524,369 382,487 185,995 158,372 710,364 540,859 Other liabilities 74,546 115,480 31,825 29,149 106,371 144,629 Total liabilities 598,915 497,967 217,820 187,521 816,735 685,488 Deferred Inflows of Resources 31,185 131,434 3,860 18,737 35,045 150,171 Net Position
Net investment in capital assets 1,353,462 1,369,954 746,197 754,164 2,099,659 2,124,118 Restricted 15,276 21,536 20,200 20,200 35,476 41,736
Unrestricted (59,276) (39,763) 113,279 106,969 54,003 67,206 Total Net Position $1,309,462 $1,351,727 $ 879,676 $ 881,333 $ 2,189,138 $ 2,233,060 Governmental Activities – Total assets for governmental activities increased by $49.2 million, with current and other assets in governmental activities increasing by $35.2 million and a capital assets increase of $14.0 million. Total liabilities decreased by $100.9 m illion, with other liabilities increasing b y $40.9 m illion and long-term liabilities decreasing b y $141.9 m illion.

Changes to the balance sheet account, specifically in capital assets and long-term liabilities are explained further in the applicable Note Disclosures of that accompanying this document. These changes are not related to any significant events that are consider notable or outside the normal operations of a municipal government.

Of the $42.3 million increase in governmental activities total net position, unrestricted net position increased by $19.5 million, 8 CITY OF BAKERSFIELD
Management's Discussion and Analysis
net investment in capital assets increased by $16.5 million and restricted net position increased by $6.3 million. Net investment in capital assets increased due to continued development throughout the City increasing the value of overall infrastructure. The increase in unrestricted net position stems from continued decreases in the other post-employment benefit liability along with a decrease in pension liabilities this year as a result of improved investment performance of the City's pension plan.. There were also increases in revenues, in relation to much smaller levels of increases in expenses across most departments, resulted in an increase in net position.

Business-Type Activities – Total assets for business-type activities decreased by $12.3 million, with current and other assets decreasing b y $11.1 million and a $1.2 million decrease in capital assets. T otal liabilities decreased by $30.3 million, with other liabilities decreasing by $2.7 million and long-term liabilities also decreasing by $27.6 million. T otal net position for business-type activities increased by $1.7 million. Of that amount, net investment in capital assets increased by $8.0 million.

Restricted net position remained constant and unrestricted net position decreased by $6.3 million. The overall increase in net position is the result of operations, specifically in Wastewater activities, and completed improvement projects in the Wastewater and, Refuse funds. As with governmental activities, there was a decrease in the net other post-employment benefit liability and the pension related liabilities that also played a part in the increased net position.

Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2021 and 2022. The City’s total revenues of $685.0 million were more than expenses of $597.4 million for an increase in net position before transfers & other items of $87.6 million. The governmental and business-type activities columns reflect amounts that have been restated in this financial report. Note 23 explains any prior period adjustments that changed net position.

City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2021 2022 2021 2022 2021 2022
Revenues:

Program revenues:

Charges for services $ 70,277 $ 67,803 $ 130,088 $ 137,668 $ 200,365 $ 205,471 Operating grants and
contributions 104,734 43,350 12,106 9,583 116,840 52,933 Capital grants and
contributions 92,038 90,120 13,829 11,758 105,867 101,878 Total program revenues 267,049 201,273 156,023 159,009 423,072 360,282 General revenues:

Taxes:

Property taxes 92,615 96,169 - - 92,615 96,169
Sales taxes 180,299 201,047 - - 180,299 201,047
Other taxes 1,722 2,053 - - 1,722 2,053
Intergovernmental:

Intergovt, unrestricted 288 459 - - 288 459
Grants and contributions not
restricted to specific programs 25,713 28,518 - - 25,713 28,518 Investment earnings 53 (5,253) 650 (1,925) 703 (7,178)
Miscellaneous 3,642 3,627 - - 3,642 3,627
Gain on sale of property 11 9 35 (9) 46 -
Total Revenues 571,392 527,902 156,708 157,075 728,100 684,977 9 CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2021 2022 2021 2022 2021 2022
Expenses:

Governmental:

General government 59,796 42,512 - - 59,796 42,512
Public safety - Police 122,380 129,729 - - 122,380 129,729 Public safety - Fire 50,310 45,765 - - 50,310 45,765
Public works 145,039 150,281 - - 145,039 150,281
Recreation and parks 25,111 26,119 - - 25,111 26,119
Development services 10,230 6,956 - - 10,230 6,956
Economic/Community dev. 8,793 50,041 - - 8,793 50,041
Interest on long-term debt (5) 18 - - (5) 18
Subtotal - Governmental 421,654 451,421 - - 421,654 451,421 Business-Type:

Wastewater treatment - - 41,038 41,499 41,038 41,499
Refuse collection - - 50,804 58,507 50,804 58,507
Agricultural water - - 5,099 7,096 5,099 7,096
Domestic water - - 35,477 38,098 35,477 38,098
General aviation - - 549 430 549 430
Offstreet parking - - 309 342 309 342
Subtotal - Business-Type - - 133,276 145,972 133,276 145,972 Total expenses 421,654 451,421 133,276 145,972 554,930 597,393 Change in net position before
transfers & other items 149,738 76,481 23,432 11,103 173,170 87,584 Transfers (11,841) (3,720) (4,073) (2,924) (15,914) (6,644) Changes in net position 137,897 72,761 19,359 8,179 157,256 80,940 Net Position - Beginning of
Year (as restated) 1,171,565 1,278,965 860,317 873,155 2,031,882 2,152,120 Net Position - End of Year $ 1,309,462 $ 1,351,726 $ 879,676 $ 881,334 $ 2,189,138 $ 2,233,060 Governmental Activities – The results in governmental activities caused an increase in the City’s net position by $72.8 million during the year. The following graph displays the difference between the program revenue and expenses by activity to illustrate the amount each respective activity is supported by program revenues versus general revenue, which is almost exclusively taxes. The majority of the governmental activities of the City do not receive sufficient program revenues to cover their costs.

The activities that have the largest portion of their activities covered by tax revenue are Public Safety and Public Works whose service delivery costs exceeded program revenues by $159.7 million and $47.4 million, respectively. 10 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Total expenses in Governmental Activities had a net increase of just $29.8 million from the previous fiscal year for an overall

7.1% increase. That increase is primarily due to increases in program activity for the Economic & Community Development department totaling $41.2 million. These programs utilized began in the prior year but have increases significantly with more funds being directed to fund affordable housing and encourage economic growth. There were increases other areas were Public Safety-Police which increased by $7.3 million and Public Works which increased by $5.2 million. These increases are primarily connected to the more programs initiated to meet the goals of the Public Safety and Vital Services (PSVS) district tax measure.

The funds were to be directed toward increases in staffing and services for police and fire, addressing homelessness in the community, increases in and increasing opportunities for economic development. A portion of these cost increases also related to increases to California Public Employees' Retirement System (CalPERS) rates in the current year. These increases were offset in part by a decrease in General Government costs totaling $17.3 million. That decrease is connected to the increase in the Economic & Community Development increase where portions of service programs were shifted to that department. 11 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Taxes are the largest revenue source for governmental activities, which is the case for most municipal governments, amounting to $299.3 million or 56.5% of total revenues. Capital grants and contributions is also a significant revenue source for the City’s governmental activities, amounting to $90.1 million or 17.0% of total revenues. Grant revenue can be dependent on programs operations and reimbursable activities. The third largest source of revenue is charges for services which amounts to $67.8 million or 12.8% of total revenues.

Governmental Activities Revenues decreased $ 43.5 million which is a 7.6% decrease c ompared to the previous fiscal year.

This decrease is due primarily to a 58.6%, or $61.4 million, decrease in operating grant revenue related to the American Rescue Plan Act (ARPA) recognized as revenue in the prior year that were not received in the current year.

General Revenues - Sales tax revenues increased by 11.5%, or $20.7 million, while property taxes increased by 3.8%, or $3.6 million. The primary reason for this increase is from continued growth in sales taxes, in particular as consumer spending ramped up significantly after the recent pandemic. The increase in sales tax also was driven by historical levels of inflation which drove up prices during the fiscal year. Property tax increases are fairly stable with property values increasing .

Program Revenues - Capital Grants and Contributions decreased b y $1.9 m illion due to a fewer special projects funded in Public Works compared to the prior year. The most significant reduction is related to the Thomas Roads Improvement Program (TRIP) projects which included increases in activity related to construction and property acquisition when compared to the previous year. Operating Grants and Contributions decreased $ 61.4 m illion, which, as noted above related to the ARPA revenue recorded in the prior year for the negative impacts of the COVID-19 pandemic. 12 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type Activities – T he City operates six Enterprise Funds that offer wastewater services, refuse collection, river & agricultural water, domestic water to City residents, downtown parking and a municipal airport.

Business-type activities increased the City’s net position by $8.2 million during the current year. The chart above compares total program revenues and expenses. As the graphic show, program revenues exceeded program expenses in Wastewater Treatment by $6.8 million and Refuse Collection by $8.1 million. While the Airpark and Offstreet Parking program revenues exceeded program expenses by a combined $216 thousand. These increases were offset slightly by program expenses exceeding program revenues in and Domestic Water by $1.5 million and River & Agricultural Water by $578 thousand. Total business- type expenses increased by $12.7 million (9.5%) over the prior year. That increase is not unexpected as inflationary pressures in the economy have resulted in increases of both materials, supplies and equipment, but has also increased labor costs and the related costs or employee benefits
The following chart illustrates the distribution of business-type revenues by category. The City’s business-type activities rely heavily on charges for services to fund their operations, making up 87.6% of total revenues. Capital grants and contributions is the second largest revenue source at 7.5% of total revenues. 13 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type activities program revenues increased by $3.0 million, 1.9%, over the prior year. The increase relates back to the increases in operational costs noted previously which requires comparable increases to rates charged to customers. The increase can also be attributed to capital improvement projects in the Wastewater and Domestic Water funds in the amount of $5.6 million and $2.6 million, respectively. There was an increase in Refuse Collection service revenue of $3.7 million due to rate increases and additional residential service customers and decreases of $3.2 million in River & Agricultural Water revenue due to a large, one-time sale of water made in the prior year.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

A fund is created and segregated for the purpose of carrying out specific activities or attaining specific objectives in accordance with special regulations, restrictions, or limitations. Activity not required to be reported in a separate fund is included in the General Fund.

Governmental Funds - The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s available resources as it represents the portion of fund balance which is not limited to use for a particular purpose by an external party, City management or City Council.

As of the end of the current fiscal year, the City’s Governmental Funds reported combined ending fund balances of $345.4 million, an increase of $25.9 million in comparison with the prior year. The components of total fund balance are as follows (for more information see Note 14 – Fund Balances):
 Nonspendable fund balance, $0.9 m illion, are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of prepaid expenses and deposits. 14 CITY OF BAKERSFIELD
Management's Discussion and Analysis
 Restricted fund balance, $26.8 million, consists of amounts with constraints put on their use by external creditors, grantors, contributions, laws, regulations or enabling legislation. Examples of restrictions on funds are those for (1) $14.6 million for the purpose of the fund (i.e., Gas Tax and Road projects), (2) $ 2.6 million from the Redevelopment Successor Agency Housing Fund for projects and (3) $3.3 million for traffic safety projects.  Committed fund balance, $184.4 million, are amounts for specific purposes determined by the Bakersfield City Council, such as funds collected from fees paid to mitigate the traffic impacts to the regional circulation system of $60.7 million, funds set aside for future city facilities and infrastructure project $4.0 million, funds set aside by City Council in the General Fund for cash basis/emergency reserves of $48.6 million and $31.8 million for appropriations for next year’s budget.
 Assigned fund balance, $126.2 million, for funds set aside by management for specific purposes. Amounts include $85.3 million set aside for capital projects and $ 6.5 million for the fund purposes related to transient occupancy fees, and $31.8 million for PSVS fund balance. Those available funds are set aside for future projects that will meet the intended uses of those funds in accordance with the sales tax ballot measure.  Unassigned fund balance, $7.2 million represents the residual classification for the City’s General Fund.

General Fund: The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the General Fund’s total fund balance increased by 1.9%, or $2.4 million from $126.1 million to $128.4 million. The following detail of changes from the prior year explains this change in fund balance for the year:
 Total operating revenues increased by $19.2 million (5.7%). Property Tax revenue increased by $3.6 million due to continuation of higher assessed values within the City limits. Sales Tax revenue had the most significant increase with a full fiscal year of receipts from the new PSVS district tax and improvements in the base (Bradley-Burns) portion resulting in an increase of $20.7 million. Both components of sales tax also saw an increase due to the previously mentioned increases in consumer spending, especially in the auto sales and general merchandise industries along with the Wayfair decision which added more sales tax revenue from online purchases. There was also a significant increase of charges for services related to interfund allocation of ARPA dollars to the General Fund to reimburse public safety costs. All other revenue sources within the General Fund remained fairly consistent compared to the previous fiscal year.
 Total expenditures increased b y $37.8 million (a 15.1% increase). This was due to increases in the Public Safety costs in both Police and Fire expenditures related primarily to PSVS funded hiring along w ith filling some vacancies ($19.4 million and $3.6 million, respectively). Overall personnel expenditures also increased throughout all General Fund departments due to hiring related to PSVS programs and increases in pension costs.

Other governmental funds: As compared with the prior year, the total fund balances of the remaining governmental funds increased by 12.1%, or $23.5 million, to $217.0 million with the following significant changes:
 The Gas Tax and Road Fund increased by $6.9 million from $7.7 million to $14.6 million. Amounts in this fund are restricted by state and federal statute. The increase in overall fund balance is connected to additional governmental revenue received that was not earmarked for current year project. Those funds are expected to be allocated in future years.
 The Capital Outlay Fund balance increased by $32.4 million from $90.9 million to $123.4 million. Of this amount, $35.6 million is committed for contractual obligations and $1.7 million is committed for facility replacement. The remaining amount of $85.3 m illion is assigned and available for use at management’s discretion. The resulting increase shows that expenditures were in line with projected revenues (which included significant transfers from the PSVS fund for ongoing CIP projects).
 The Park Improvement Fund increased by $1.2 million. Of this fund balance amount, the full amount of $9.2 million is committed for contractual obligations. The increase in fund balance is an accumulation of funds connected to future plans for expansion and improvement of area parks. 15 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Proprietary Funds - The City’s Proprietary Funds are shown in their entirety in the government-wide financial statements. All funds are being reported as major funds, so there is no need to report additional detail elsewhere in the document.

The Wastewater Treatment Fund has total net position of $559.9 million at the end of the current year, an increase of $5.6 million over the prior year. Total net position includes $490.5 million net investment in capital assets and $20.2 million of restricted assets which are not available to cover current expenses. The remaining net position of $49.3 million is unrestricted and available to cover current operating and capital needs (including plant and equipment replacement) of the fund. The majority of the increase resulted from more development completed to infrastructure in the current year which was reflected in a $7.5 million addition in Capital Contributions. That change was offset by an operational loss brought about by inflationary drivers increasing operational costs and wages. There was also a reduction in connection fee revenue that played a factor in the overall loss. These fees are driven primarily by residential development within the City which has seen a reduction from previous years.

The Refuse Collection Fund has total net position of $5.5 million at the end of the current year, an increase of $6.2 million from the prior year. T he increase is due to more revenue collected from residential services/rates than is necessary to cover the operating costs of the division brought about by a rate increase that was approved to cover the growing cost of collection services, particularly with regards to recycling. This increase was in part related to changes in operational changes connected to losses in the prior year, which included increases in cost sharing for facilities that serve the County residences and higher collections for commercial customers.

The River and Agricultural Water Fund has total net position of $27.8 million at the end of the current year, a decrease of $1.2 million over the prior year. Total net position includes $20.2 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $7.6 million is unrestricted and available to cover current operating and capital needs of the fund. There have been larger operational losses in the prior year due to dryer years and less w ater available to sell to customers. While that revenue reduction in prior years has been rightsized, there were still inflationary driven increases to expenses that ultimately resulted in a loss in the fund.

The Domestic Water Fund has total net position of $ 271.3 million at the end of the current year, a decrease of $2.2 million over the prior year. Total net position includes $ 223.9 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $47.4 million is unrestricted and available to cover current operating and capital needs of the fund. The domestic water operations continue to operate within expected revenue but a review of rates charged to residents and businesses is needed to insure that revenues remain on track with expected escalations in costs. That increase is also related to the rise in operational costs that have affected costs throughout the City.

The General Aviation Fund has total net position of $11.5 m illion at the end of the current year, an increase o f $480,094 compared to the prior year. Total net position includes $10.6 million net investment in capital assets, which is not available to cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.

The Offstreet Parking Fund has total net position of $0.7 m illion at the end of the current year, a decrease o f $123,746 compared to the prior year. Total net position includes $0.7 million net investment in capital assets, which is not available to cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.
16 CITY OF BAKERSFIELD
Management's Discussion and Analysis

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as of June 30 of the current fiscal year amounts to $2.3 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, bridges and construction in progress. T he total increase in the City’s investment in capital assets for the current fiscal year was $12.7 million. Of this amount, a $14.0 million increase relates to Governmental Activities and a $1.2 million increase that relates to Business-Type Activities. Depreciation expense of $102.5 million reduced capital assets by this amount.

These financial statements include infrastructure assets constructed or acquired through fiscal year 2021-22.

Major capital asset events during the current fiscal year included the following:
 A variety of street construction projects and rehabilitation of major arterial streets. C onstruction in progress for governmental activities as of the end of the current fiscal year is $159.8 million. This figure includes over $29.2 million towards major street construction, traffic signals, and resurfacing projects throughout the City.  The City added over $20.5 million in new streets and roads primarily due to new residential developments completed in the current year. These newly constructed right of ways are transferred over to the City by the various developers when the work is finalized.

City of Bakersfield - Capital Assets
(in thousands)
Governmental Activities Business-Type Activities Total
2021 2022 2021 2022 2021 2022
Land and water storage rights $ 449,935 $ 450,331 $ 23,987 $ 24,036 $ 473,922 $ 474,367 Depreciable buildings, property,
equipment and infrastructure, net 774,591 764,285 813,551 810,467 1,588,142 1,574,752 Construction in progress 135,931 159,812 15,144 16,947 151,075 176,759 Non-amortizable intangible assets - - 31,477 31,477 31,477 31,477 Total Capital Assets $1,360,457 $1,374,428 $ 884,159 $ 882,927 $ 2,244,616 $ 2,257,355 17 CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Outstanding Debt
Balance Incurred Satisfied Balance
June 30, 2021 or Issued or Matured June 30, 2022
Governmental Activities
Notes Payable $ 3,995,063 $ 870,288 $ (1,317,681) $ 3,547,670 Certificates of Participation* 3,000,000 - (3,000,000) - Total governmental activities $ 6,995,063 $ 870,288 $ (4,317,681) $ 3,547,670 Business-Type Activities
Revenue Bonds Payable $ 129,974,556 $ - $ (9,276,778) $ 120,697,778 Notes Payable 3,000,000 - (280,303) 2,719,697
Total business-type activities $ 132,974,556 $ - $ (9,557,081) $ 123,417,475 Total Debt $ 139,969,619 $ 870,288 $(13,874,762) $ 126,965,145 * Certificates of Participation in governmental activities are debt of the former Redevelopment Agency that is now reported as City debt.
 Long-Term Debt - At the end of the current fiscal year, the City had a total debt outstanding of $ 127.0 million. The City’s total debt decreased by a net amount of $13.0 million during the current fiscal year. This amount is the result of normal debt maturities.

Certificates of Participation issued by the City via the former Redevelopment Agency in 2006 carry a Reserve Fund Surety from Ambac Assurance Company (Ambac). Moody’s Investor’s Service (Moody’s) rating on Ambac is currently “Baa1”. T he current underlying rating on the Certificates of Participation has not been revised (currently “A1”). T his rating on the Certificates of Participation reflects only the view of Moody’s, and any desired explanation of the significance of such rating should be obtained from Moody’s. There is no assurance that such rating will continue for any given period of time or that such rating will not be revised or withdrawn by Moody’s if, in the judgment of Moody’s, circumstances so warrant.

The 2015 Wastewater Revenue Bonds – Series A, i ssued by the City in 2015, which redeemed a majority of the 2007 Wastewater Revenue Bonds – Series A, has an “Aa2” rating from Moody’s and an "AA" rating from Standard & Poors. There is no assurance that such ratings will continue for any given period of time or that such ratings will not be revised or withdrawn by the rating agencies if, in their judgment, circumstances so warrant.

More detailed information regarding capital asset and long-term debt activity can be found in the related notes to the financial statements. See Note 5 for capital assets and Note 11 for long-term debt. 18 CITY OF BAKERSFIELD
Management's Discussion and Analysis

GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget reflect an increase in resources of $13.3 million and an increase in appropriations of $70.3 million. Significant budgetary amendments (changes) are summarized as follows:
 $5.4 million increase in various resources and appropriations due to revenues associated with open purchase orders at the end of the previous fiscal year. Also, $6.7 million increase in various resources due to revenues associated with prior year appropriations not spent and carried forward to this fiscal year.  $1.6 million was added to the budget for updated revenue estimates of PSVS district sales tax designated to address needs throughout Bakersfield including public safety, economic development and homelessness.  $28.8 million increase in appropriations for PSVS tax revenue that was determined to be available for operational programs and capital projects approved by the City Council at mid-year. T hese included programs to address homelessness, public safety and park improvements.

The final amended revenue estimate budget figures in the General Fund were lower than actual revenue by $42.2 million and appropriations were higher than actual expenditures by $27.3 m illion. Significant differences between budget and actual amounts are as follows:
 $41.6 million positive variance in tax revenue. This is the result of an increase in property tax revenue and sales and use tax revenue. Property tax revenue was initially estimated to increase while Sales tax revenue were not expected to increase at the level experienced. Projections for tax revenue were conservative in nature because of uncertainty throughout the year on the level and sustainability of economic recovery in the area.  $3.0 million less than budgeted in intergovernmental revenue which is due primarily to this source of funds being based on reimbursement of expenditures incurred. Some of the project activity for these awards had not moved forward resulting in less revenue being recognized.
 There was a $12.7 m illion variance of appropriations over actual expenditures in Economic & Community Development. The savings is due to major economic development service projects for businesses and members of the underserved community that were budgeted but not started.  The majority of the other variances of appropriations over actual expenditures across the General Fund departments was from savings brought about primarily in salary and benefits from unfilled positions or positions filled later in the year.
19 CITY OF BAKERSFIELD
Management's Discussion and Analysis

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The key assumptions in the General Fund revenue forecast for fiscal year 2022-23 were:

1. Property tax revenue is projected to grow at 4% which is the same level as last year’s estimate as projected by Kern County.

2. Sales and use tax revenue is projected to show an increase of 3% in t he upcoming fiscal year which was a conservative estimate in light of the continued growth seen in this revenue source. The City will monitor the quarterly reports prepared by the State in conjunction with outside analysis of trends to understand if that revenue increase will be realized.

3. California Public Employees’ Retirement System (CalPERS) experienced investment returns above the plan's established discount rate which has actually created a slight reduction in the Normal rates going into the next fiscal year. The unfunded portion of the retirement contribution still saw an increase so overall contributions went up for Miscellaneous and Fire, approximately 1.5% and 2.6% respectively. B ecause of the population make-up of the Police plan, rates for this group dropped by 3.5%. While the plan performance for the applicable year reduced the expected cost escalation, larger increases are projected for future fiscal years as plan performance has not been as positive in recent investment periods.

New items specifically addressed in the 2022-23 budget include the following:

Police Department – T he Police Department’s operating budget has increased from fiscal year 2021-22 by 13.6%, totaling $18.1 million. T his increase is primarily attributable to increased costs related to the PSVS plan to increase the number of officers and support staff in the department. Fiscal year 2022-23 is the fourth year of this staffing ramp up as the City continues to work to address crime and public safety challenges.

Fire Department – The Fire Department's operating budget had and increase of just under 8.9% from fiscal year 2021-22 totaling just $4.6 million. The increase is primarily due to cost of living increases for City staff and a slight rise in CalPERS rates.

Public Works - T he Public Works Department operating budget increased by $18.1 million, or 12.1%, from fiscal year 2021-22. The increase was also due to some additional staffing covered by the PSVS funds in addition to the CalPERS rate escalations as well as an increases in salaries & benefit costs.

Development Services – T he Development Services Department’s operating budget actually decreased from fiscal year 2021-22 b y 18.5%. T his decrease is due to a reduction in contracted services needed in the upcoming year which offset increases from cost of living increases for City staff and a slight rise in CalPERS rates.

Economic & Community Development – T he Economic & Community Development Department’s operating budget has increased from fiscal year 2021-22 b y 18.5%, totaling $4.1 million. T his increase is due to added funding for various community focused programs to address economic development along with increases in salaries & benefit costs.

Recreation and Parks – The Recreation and Parks Department’s operating budget has increased from fiscal year 2021-22 by

15.4%, totaling $4.2 million. The increase was due primarily to the rise in CalPERS rates as well as an increases in salaries & benefit costs. There as also the addition of a Park Ranger program in the upcoming budget year that attributed to the increase.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information can be sent via e-mail to:
[email protected]. Formal written requests should be addressed to: City of Bakersfield, Attn: Finance Department, 1600 Truxtun Avenue, Bakersfield, CA 93301.
20 Government-Wide Financial Statements
21 CITY OF BAKERSFIELD
Statement of Net Position
June 30, 2022
Assets Governmental
Activities
Business-Type
Activities Total
Current assets:

Cash and investments $ 402,084,467 $ 168,354,988 $ 570,439,455 Accounts receivable, net 31,345,892 8,587,191 39,933,083 Interest receivable 799,357 420,498 1,219,855
Advances to other funds - current - 284,507 284,507
Due from other governmental agencies 72,181,106 1,958,641 74,139,747 Internal balances (4,616,938) 4,616,938 -
Prepayments and inventories 2,320,500 - 2,320,500
Total current assets 504,114,384 184,222,763 688,337,147 Noncurrent assets:

Capital assets:

Land 450,330,563 24,036,130 474,366,693
Depreciable capital assets, net 764,285,184 810,466,583 1,574,751,767 Construction in progress 159,812,153 16,946,746 176,758,899 Intangible assets - 31,476,906 31,476,906
Advances to other funds - 2,435,190 2,435,190
Right to use assets, net of amortization 1,379,712 - 1,379,712 Land held for resale 1,198,744 - 1,198,744
Lease receivable 449,397 4,624,235 5,073,632
Notes/loans receivable 24,948,664 26,760 24,975,424
Total noncurrent assets 1,402,404,417 890,012,550 2,292,416,967 Total assets 1,906,518,801 1,074,235,313 2,980,754,114
Deferred Outflows of Resources:

Deferred pensions (See Note 16) 69,647,160 5,038,788 74,685,948 Deferred OPEB (See Note 17) 4,963,081 755,491 5,718,572 Debt issuance - 7,561,396 7,561,396
Total deferred outflows of resources 74,610,241 13,355,675 87,965,916 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 36,767,661 12,233,604 49,001,265 Customers' deposits - 5,354,313 5,354,313
Advances from grantors and third parties 62,032,701 123,639 62,156,340 Long-term debt 1,260,445 9,601,778 10,862,223
Advances from other funds - current - 284,507 284,507
Lease liability 479,018 712,201 1,191,219
Kern River Levee District - 326,262 326,262
Claims and judgments payable 12,273,000 - 12,273,000
Compensated absences payable 2,667,177 512,580 3,179,757 Total current liabilities 115,480,002 29,148,884 144,628,886 Noncurrent liabilities:

Long-term debt 2,287,224 111,096,000 113,383,224
Advances from other funds - 2,435,190 2,435,190
Lease liability 925,767 14,913,683 15,839,450
Claims and judgments payable 59,048,000 - 59,048,000
Net other post-employment benefits liability 13,527,617 2,059,206 15,586,823 Compensated absences payable 17,445,830 1,828,082 19,273,912 Net pension liability 289,252,477 26,040,059 315,292,536 Total noncurrent liabilities 382,486,915 158,372,220 540,859,135 Total liabilities 497,966,917 187,521,104 685,488,021
Deferred Inflows of Resources:

Deferred pensions (See Note 16) 107,202,356 10,550,455 117,752,811 Deferred OPEB (See Note 17) 23,797,395 3,622,498 27,419,893 Deferred Leases (See Note 10) 434,694 4,563,846 4,998,540 Total deferred inflows of resources 131,434,445 18,736,799 150,171,244 Net Position:

Net investment in capital assets 1,369,954,461 754,164,100 2,124,118,561 Restricted: Capital improvements 21,536,491 20,200,000 41,736,491 Unrestricted (39,763,272) 106,968,986 67,205,714
Total net position $ 1,351,727,680 $ 881,333,086 $ 2,233,060,766 The accompanying notes are an integral part of these financial statements. 22 23

CITY OF BAKERSFIELD
Statement of Activities
For the Fiscal Year Ended June 30, 2022
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
Primary Government:

Governmental activities:

General government $ 42,511,573 $ 8,343,684 $ 7,763,287 $ - $ 16,106,971 Public safety - Police 129,728,794 4,098,823 2,323,244 - 6,422,067 Public safety - Fire 45,764,559 8,988,190 342,899 - 9,331,089 Public works 150,281,233 18,860,054 5,835,716 78,221,166 102,916,936 Recreation & parks 26,118,994 20,184,327 20,649 2,389,677 22,594,653 Development services 6,956,455 7,327,904 1,710,944 - 9,038,848 Economic /Community development 50,040,874 - 25,353,366 9,508,968 34,862,334 Interest on long-term debt 17,809 - - - -
Total governmental activities 451,420,291 67,802,982 43,350,105 90,119,811 201,272,898 Business-type activities:

Wastewater treatment 41,498,952 34,009,383 6,792,887 7,480,709 48,282,979 Refuse collection 58,507,299 65,874,392 730,734 - 66,605,126 River and agricultural water 7,096,442 6,432,162 - 86,105 6,518,267 Domestic water 38,097,963 30,921,823 2,054,626 3,629,894 36,606,343 General aviation 429,865 314,360 4,853 560,825 880,038
Offstreet parking 341,910 116,313 - - 116,313
Total business-type activities 145,972,431 137,668,433 9,583,100 11,757,533 159,009,066 Total primary government $ 597,392,722 $ 205,471,415 $ 52,933,205 $ 101,877,344 $ 360,281,964 General Revenues:

Taxes:

Property taxes
Sales and use tax
Other taxes
Intergovernmental, unrestricted
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Gain on sale of property
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
The accompanying notes are an integral part of these financial statements. 24 Net (Expenses) Revenues and
Changes in Net Position
Governmental
Activities
Business-Type
Activities Total
$ (26,404,602) $ - $ (26,404,602)
(123,306,727) - (123,306,727)
(36,433,470) - (36,433,470)
(47,364,297) - (47,364,297)
(3,524,341) - (3,524,341)
2,082,393 - 2,082,393
(15,178,540) - (15,178,540)
(17,809) - (17,809)
(250,147,393) - (250,147,393)
- 6,784,027 6,784,027
- 8,097,827 8,097,827
- (578,175) (578,175)
- (1,491,620) (1,491,620)
- 450,173 450,173
- (225,597) (225,597)
- 13,036,635 13,036,635
$ (250,147,393) $ 13,036,635 $ (237,110,758)
$ 96,169,420 $ - $ 96,169,420
201,046,660 - 201,046,660
2,053,178 - 2,053,178
459,088 - 459,088
28,518,519 - 28,518,519
(5,253,433) (1,924,718) (7,178,151)
3,627,334 - 3,627,334
9,361 (9,328) 33
(3,720,254) (2,924,103) (6,644,357)
322,909,873 (4,858,149) 318,051,724
72,762,480 8,178,486 80,940,966
1,278,965,200 873,154,600 2,152,119,800
$ 1,351,727,680 $ 881,333,086 $ 2,233,060,766
25 26
Governmental Fund Financial Statements
27 CITY OF BAKERSFIELD
Balance Sheet
Governmental Funds
June 30, 2022
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Assets:

Cash and investments $ 89,708,575 $ 4,708,887 $ - $ -
Accounts receivable, net 9,777,236 1,850,069 14,692,554 - Interest receivable 219,897 15,827 - 20,154
Due from other governmental agencies 39,248,667 - 2,010,306 30,393,679 Due from other funds 8,942,716 - - -
Notes/loans receivable - - 2,733,510 -
Lease receivable 449,397 - - -
Prepaid items 59,739 - - -
Total assets $ 148,406,227 $ 6,574,783 $ 19,436,370 $ 30,413,833 Liabilities, Deferred Inflows of Resources and Fund
Balances:

Liabilities:

Accounts payable $ 11,613,443 $ 63,346 $ 1,718,839 $ 7,440,024 Due to other governmental agencies 3,800,000 - - -
Due to other funds - - 612,918 8,329,798
Advances from grantors and third parties 1,906,190 - - - Total liabilities 17,319,633 63,346 2,331,757 15,769,822 Deferred Inflows of Resources:

Lease related items 434,694 - - -
Deferred revenue 2,210,600 - 17,425,534 -
Total Deferred Inflows of Resources 2,645,294 - 17,425,534 - Fund Balances:

Nonspendable 98,463 - - -
Restricted - - - 14,644,011
Committed 86,443,908 12,100 - -
Assigned 34,420,249 6,499,337 - -
Unassigned 7,478,680 - (320,921) -
Total fund balances 128,441,300 6,511,437 (320,921) 14,644,011 Total liabilities, deferred inflows of
resources, and fund balances $ 148,406,227 $ 6,574,783 $ 19,436,370 $ 30,413,833 The accompanying notes are an integral part of these financial statements. 28 Covid Relief
Capital
Outlay
Park
Improvement
Transportation
Development
Redevelopment
Successor
Agency -
Housing
Other
Governmental
Funds
Total
Governmental
Funds
$ 43,753,056 $ 125,179,977 $ 12,869,155 $ 52,844,359 $ 2,606,164 $ 3,740,370 $ 335,410,543 - 194,998 - - 216 4,828,529 31,343,602
101,468 146,317 25,395 122,826 5,407 18,229 675,520
- 275,954 - - - 152,501 72,081,107
- - - - - - 8,942,716
- - - - 22,215,154 - 24,948,664
- - - - - - 449,397
- 779,865 - - - - 839,604
$ 43,854,524 $ 126,577,111 $ 12,894,550 $ 52,967,185 $ 24,826,941 $ 8,739,629 $ 474,691,153 $ 199,015 $ 3,170,785 $ 3,738,706 $ 1,529,346 $ - $ 186,197 $ 29,659,701 - - - - - - 3,800,000
- - - - - - 8,942,716
37,679,079 - - - 22,215,154 232,278 62,032,701
37,878,094 3,170,785 3,738,706 1,529,346 22,215,154 418,475 104,435,118 - - - - - - 434,694
- 46,606 - - - 4,715,677 24,398,417
- 46,606 - - - 4,715,677 24,833,111
- 779,865 - - - - 878,328
5,976,430 - - - 2,611,787 3,605,477 26,837,705
- 37,316,888 9,155,844 51,437,839 - - 184,366,579
- 85,262,967 - - - - 126,182,553
- - - - - - 7,157,759
5,976,430 123,359,720 9,155,844 51,437,839 2,611,787 3,605,477 345,422,924 $ 43,854,524 $ 126,577,111 $ 12,894,550 $ 52,967,185 $ 24,826,941 $ 8,739,629 $ 474,691,153 29 CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Total Fund Balances - Total Governmental Funds $ 345,422,924 Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. Capital assets allocated from Internal Service Funds are included in the Internal Service Funds adjustment below.

Capital assets 2,661,374,852
Ending accumulated depreciation (1,343,469,716) 1,317,905,136 Right to use lease asset (net of amortization). 1,379,712 Land held for resale is not a current financial resource and is not reported in the Governmental Funds. 1,198,744
Deferred outflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds. 68,165,431
Deferred outflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds. 4,769,586 Deferred inflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds. (104,519,243)
Deferred inflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds. (22,869,611) Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (14,905) Unavailable revenue and other resources not available to liquidate liabilities of the current period are not recognized in the Governmental Funds. 24,398,417
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The assets and liabilities of the Internal Service Funds are included in governmental activities in the Government-Wide Statement of Net Position. 35,378,132
Long-term liabilities are not due and payable in the current period and therefore they are not reported in the Governmental Funds Balance Sheet. Noncurrent liabilities allocated from Internal Service Funds are included in the Internal Service Funds adjustment above.

Notes/Contracts/Loans payable (3,547,669)
Compensated absences payable (19,449,430)
Lease payable (1,404,785)
Unfunded post-employment benefits (13,000,218)
Unfunded pension benefits (282,084,541) (319,486,643)
Net Position of Governmental Activities $ 1,351,727,680 The accompanying notes are an integral part of these financial statements. 30 31

CITY OF BAKERSFIELD
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2022
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Revenues:

Taxes $ 309,702,545 $ 11,503,778 $ - $ -
Licenses and permits 3,043,365 - - -
Intergovernmental 7,885,516 - 10,968,982 81,218,305
Charges for services 32,912,842 10,673,248 - -
Fines, forfeitures and assessments 1,204,150 - - 71,342 Interest income (loss) (3,566,798) (189,983) 21,372 (219,528) Loan payments - - 180,319 -
Contributions and donations 446,695 1,200,000 - -
Other income 2,820,321 1,318 121,795 9,105
Total revenues 354,448,636 23,188,361 11,292,468 81,079,224 Expenditures:

Current:

General government 17,647,992 11,650,162 - -
Public safety - Police 134,522,103 - - -
Public safety - Fire 51,507,722 - - -
Public works 29,751,683 - - 3,833,831
Recreation and parks 24,969,061 - - -
Development services 11,804,870 - (1) -
Economic/Community development 6,740,709 - 8,749,079 -
Non-departmental 11,647,045 3,133,725 - -
Capital outlay - - 2,749,726 70,186,199
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 288,591,185 14,783,887 11,498,804 74,020,030 Excess (deficiency) of revenues
over (under) expenditures 65,857,451 8,404,474 (206,336) 7,059,194 Other financing sources (uses):

Loan proceeds 870,288 - - -
Transfers in 1,100,000 - - -
Transfers out (65,456,162) (6,892,061) (517,810) (97,500) Total other financing sources (uses) (63,485,874) (6,892,061) (517,810) (97,500) Net change in fund balances 2,371,577 1,512,413 (724,146) 6,961,694 Fund balances - beginning, restated 126,069,723 4,999,024 403,225 7,682,317 Fund balances - ending $ 128,441,300 $ 6,511,437 $ (320,921) $ 14,644,011 The accompanying notes are an integral part of these financial statements. 32 Covid Relief
Capital
Outlay
Park
Improvement
Transportation
Development
Redevelopment
Successor
Agency -
Housing
Other
Governmental
Funds
Total
Governmental
Funds
$ - $ 6,306,714 $ - $ - $ - $ - $ 327,513,037
- - - - - 341,515 3,384,880
5,422,283 192,403 - - - 26,377,559 132,065,048
- 58,285 - 94,228 - 1,492,099 45,230,702
- 114,101 2,197,274 15,583,773 - 1,868,040 21,038,680
208,716 (1,743,173) (213,783) (338,245) (39,398) (61,757) (6,142,577) - - - - - 28,945 209,264
- - - - - - 1,646,695
- - - 9,799 194,217 (1) 3,156,554
5,630,999 4,928,330 1,983,491 15,349,555 154,819 30,046,400 528,102,283 - - - 112,183 - - 29,410,337
- - - - - 1,866,010 136,388,113
- - - - - 1,496,802 53,004,524
- 34,868 - 665,891 - 378,376 34,664,649
- - - - - 25,604 24,994,665
- - - - - 99,050 11,903,919
10,121,804 - - - 104,399 24,092,340 49,808,331
5,220,895 499,366 - - - - 20,501,031
- 32,680,914 822,080 23,363,273 - 385,516 130,187,708
- - - - - 1,317,651 1,317,651
- - - - - 17,809 17,809
15,342,699 33,215,148 822,080 24,141,347 104,399 29,679,158 492,198,737 (9,711,700) (28,286,818) 1,161,411 (8,791,792) 50,420 367,242 35,903,546 - - - - - - 870,288
- 66,523,381 - - - 1,335,461 68,958,842
- (5,797,000) - - - (1,118,000) (79,878,533)
- 60,726,381 - - - 217,461 (10,049,403)
(9,711,700) 32,439,563 1,161,411 (8,791,792) 50,420 584,703 25,854,143 15,688,130 90,920,157 7,994,433 60,229,631 2,561,367 3,020,774 319,568,781 $ 5,976,430 $ 123,359,720 $ 9,155,844 $ 51,437,839 $ 2,611,787 $ 3,605,477 $ 345,422,924 33 CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities For the Fiscal Year Ended June 30, 2022
Net Change in Fund Balances - Total Governmental Funds $ 25,854,143 Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital Outlay eliminated $ 18,615,618
Depreciation and amortization expense is deducted from fund balance (net of Internal Service Fund depreciation of $9,604,315 which has already been allocated to serviced funds). (64,898,041) Contributions of infrastructure and improvements by developers are capitalized in the Statement of Activities, but are not recorded in the Governmental Fund Financial Statements because no cash changed hands. 55,226,792 8,944,369
Certain expenses are reported in the Government-Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, these expenses are not reported as expenditures in Governmental Funds.

Net compensated absences expense (1,416,957)
Interest expense on long-term debt 69,030
Net pension expense 29,416,738
Net other post-employment benefit expense 11,466,782 39,535,593 Bond and loan proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond principal is an expenditure in Governmental Funds, but the repayment reduces long-term liabilities in the Government-Wide Statement of Net Position. 3,014,363
Unearned revenue and other resources not available to liquidate liabilities of the current period are not recognized in the Governmental Funds. Revenue in the Statement of Activities is not limited by availability, so certain revenues need to be reduced by the amounts that were unavailable at the end of the year. This adjustment records a net decrease in revenues - unavailable revenues at the beginning of the year exceed ending unavailable revenues by this amount. (1,669,079) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the Internal Service Funds is reported with Governmental Activities. (2,916,909)
Change in Net Position of Governmental Activities $ 72,762,480 The accompanying notes are an integral part of these financial statements. 34 Proprietary Fund Financial Statements
These funds account for operations (a) that are financed and operated in a m anner similar to private business enterprises where the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of net income is appropriate for accountability purposes.

Wastewater Treatment Fund i s used to account for the provision of sewer service to the residents of the City and some residents of Kern County. This fund also accounts for the activities related to the debt issuance which provided for the Wastewater Treatment Facilities.

Refuse Collection Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such services are accounted for in this fund.

River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural purposes to users within the City and some users within Kern County (some Kern River water is exchanged for State Aqueduct water for domestic water purposes). All activities necessary to provide such services are accounted for in this fund.

Domestic Water Fund is used to account for the provision of water service to some residents of the City and Kern County. All activities necessary to provide such service are accounted for in this fund.

General Aviation Fund i s used to account for the acquisition and operation of the Bakersfield Airpark. The majority of acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation Administration.

Offstreet Parking Fund i s used to account for the operations of the parking garage at 18th and Eye Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the related debt was retired in August 1994. Subsequently, the title was transferred to the City.

Internal Service Funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis.
35 CITY OF BAKERSFIELD
Statement of Net Position
Proprietary Funds
June 30, 2022
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Current assets:

Cash and investments $ 84,103,035 $ 21,168,184 $ 10,976,636 Accounts receivable, net 1,761,168 1,754,930 922,793
Interest receivable 207,041 36,212 26,945
Advances to other funds - current 284,507 - -
Due from other governmental agencies 88,693 1,869,609 339 Prepayments and inventories - - -
Total current assets 86,444,444 24,828,935 11,926,713
Noncurrent assets:

Capital assets:

Land 10,287,000 2,958,335 2,175,944
Depreciable buildings, property,
equipment and infrastructure, net 583,191,621 3,636,144 9,793,400 Construction in progress 10,128,067 1,677,396 155,619
Intangible assets - - 8,032,678
Lease receivable 3,359,579 - -
Advances to other funds 2,435,190 - -
Other long-term receivable - - 26,760
Total noncurrent assets 609,401,457 8,271,875 20,184,401 Total assets 695,845,901 33,100,810 32,111,114
Deferred outflows of resources:

Deferred pensions 1,357,883 2,824,821 408,756
Deferred other post-employment benefits 220,609 439,985 77,643 Debt issuance 7,561,396 - -
Total deferred outflows of resources 9,139,888 3,264,806 486,399 Current liabilities:

Accounts payable and accrued liabilities 4,285,053 3,340,834 586,944 Claims payable - - -
Workers' compensation claims - - -
Compensated absences payable 155,564 239,796 24,930
Advances from other funds - current - 284,507 -
Long-term debt - due within one year 9,601,778 - -
Lease liability - due within one year - - -
Advances from grantors and third parties - 123,639 -
Total current liabilities 14,042,395 3,988,776 611,874
Noncurrent liabilities:

Long-term debt - due in more than one year 111,096,000 - - Lease liability - due in more than one year - - -
Kern River Levee District/Buena Vista - - 326,262
Customers' deposits 3,262,703 398,802 -
Workers' compensation claims - - -
Compensated absences payable 646,356 890,649 171,264
Advances from other funds - 2,435,190 -
Net pension liability 7,892,411 14,041,531 2,280,764
Net other post-employment benefits liability 601,302 1,199,244 211,631 Total noncurrent liabilities 123,498,772 18,965,416 2,989,921 Total liabilities 137,541,167 22,954,192 3,601,795
Deferred inflows of resources:

Deferred pensions 3,162,652 5,807,687 822,330
Deferred other post-employment benefits 1,057,793 2,109,676 372,296 Deferred Inflow Leases 3,300,656 - -
Total deferred inflows of resources 7,521,101 7,917,363 1,194,626 Net position:

Net investment in capital assets 490,470,307 8,271,875 20,157,642 Restricted for:

Capital improvements 20,200,000 - -
Unrestricted 49,253,214 (2,777,814) 7,643,450
Total net position (deficit) $ 559,923,521 $ 5,494,061 $ 27,801,092 Adjustments to reflect the consolidation of internal service fund activities related to proprietary funds
Net position of business-type activities
The accompanying notes are an integral part of these financial statements. 36 Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental Activities
Internal Service Funds
$ 51,105,727 $ 935,933 $ 65,473 $ 168,354,988 $ 66,673,923 4,142,915 645 4,740 8,587,191 2,290
117,390 32,860 50 420,498 123,836
- - - 284,507 -
- - - 1,958,641 100,000
- - - - 1,480,896
55,366,032 969,438 70,263 179,605,825 68,380,945
740,597 7,464,254 410,000 24,036,130 -
211,120,925 2,448,284 276,209 810,466,583 56,522,763
4,264,587 721,077 - 16,946,746 -
23,444,228 - - 31,476,906 -
- 1,264,656 - 4,624,235 -
- - - 2,435,190 -
- - - 26,760 -
239,570,337 11,898,271 686,209 890,012,550 56,522,763
294,936,369 12,867,709 756,472 1,069,618,375 124,903,708 415,214 32,114 - 5,038,788 1,481,729
17,254 - - 755,491 193,495
- - - 7,561,396 -
432,468 32,114 - 13,355,675 1,675,224
3,969,709 15,850 35,214 12,233,604 3,293,052
- - - - 3,229,000
- - - - 9,044,000
86,924 5,366 - 512,580 205,627
- - - 284,507 -
- - - 9,601,778 -
712,201 - - 712,201 -
- - - 123,639 -
4,768,834 21,216 35,214 23,468,309 15,771,679
- - - 111,096,000 7,871,000
14,913,683 - - 14,913,683 -
- - - 326,262 -
1,692,808 - - 5,354,313 -
- - - - 51,177,000
98,917 20,896 - 1,828,082 457,950
- - - 2,435,190 -
1,774,734 50,619 - 26,040,059 7,167,936
47,029 - - 2,059,206 527,399
18,527,171 71,515 - 164,052,795 67,201,285
23,296,005 92,731 35,214 187,521,104 82,972,964
684,315 73,471 - 10,550,455 2,683,113
82,732 - - 3,622,497 -
- 1,263,190 - 4,563,846 927,785
767,047 1,336,661 - 18,736,798 3,610,898
223,944,453 10,633,614 686,209 754,164,100 48,651,763
- - - 20,200,000 -
47,361,332 836,817 35,049 102,352,048 (8,656,693)
$ 271,305,785 $ 11,470,431 $ 721,258 876,716,148 $ 39,995,070 4,616,938
$ 881,333,086
37 CITY OF BAKERSFIELD
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Operating revenues:

Intergovernmental $ - $ 730,734 $ -
Charges for services 33,741,505 57,491,764 2,218,697
Cost recoveries 70,287 8,209,102 654,186
Rental income 185,809 - 14,128
Other sales or services 12,500 130,704 3,545,150
Miscellaneous (718) 42,823 -
Total operating revenues 34,009,383 66,605,127 6,432,161 Operating expenses:

General and administrative 16,261,242 57,677,504 6,023,884 Transmission and distribution 91,808 641,424 362,811
Compensated absences - 58,578 -
Total operating expenses 36,509,551 58,548,129 6,934,234 Operating income (loss) (2,500,168) 8,056,998 (502,073) Nonoperating revenues (expenses):

Interest income (loss) (911,012) (136,555) (163,726)
Connection fees 6,792,887 - -
Interest expense (4,458,627) (42,898) -
Gain on sale of capital assets - (19,805) -
Total nonoperating revenues (expenses) 1,423,248 (199,258) (163,726) Income (loss) before transfers
and capital contributions (1,076,920) 7,857,740 (665,799) Capital contributions 7,480,709 - -
Transfers in - - -
Transfers out (801,838) (1,642,000) (524,500)
Change in net position 5,601,951 6,215,740 (1,190,299)
Total Net Position (Deficit) -
Beginning of Year, as Restated 554,321,570 (721,679) 28,991,391 Total Net Position-End of Year $ 559,923,521 $ 5,494,061 $ 27,801,092 Adjustment to reflect the consolidation of internal
service activity related to proprietary funds
Change in net position of business-type activities
The accompanying notes are an integral part of these financial statements. 38 Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$ - $ 4,853 $ - $ 735,587 $ 100,000
28,313,792 308,979 116,313 122,191,050 54,421,470
96,109 10,210 - 9,039,894 1,850,066
- - - 199,937 -
2,485,349 - - 6,173,703 -
26,573 (4,829) - 63,849 78,448
30,921,823 319,213 116,313 138,404,020 56,449,984
29,656,006 276,090 236,680 110,131,406 46,966,979
814,784 323 - 1,911,150 -
- - - 58,578 6,454
37,416,166 420,605 327,308 140,155,993 68,508,298
(6,494,343) (101,392) (210,995) (1,751,973) (12,058,314) (738,597) 24,928 247 (1,924,715) (889,143)
2,054,626 - - 8,847,513 -
(668,624) - - (5,170,149) -
10,477 - - (9,328) 289,612
657,882 24,928 247 1,743,321 (599,531)
(5,836,461) (76,464) (210,748) (8,652) (12,657,845)
3,629,894 560,825 - 11,671,428 1,981,312
- - 100,000 100,000 7,267,001
(38,500) (4,267) (12,998) (3,024,103) (67,563)
(2,245,067) 480,094 (123,746) 8,738,673 (3,477,095)
273,550,852 10,990,337 845,004 43,472,165
$ 271,305,785 $ 11,470,431 $ 721,258 $ 39,995,070
(560,186)
$ 8,178,487
39 CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Wastewater
Treatment
Refuse
Collection
Cash flows from operating activities:

Cash received from:

Customers, including cash deposits $ 34,291,356 $ 67,047,209 Prior year reimbursements and cost recoveries 70,287 -
Cash paid to:

Suppliers (11,143,418) (51,136,216)
Employees (7,116,882) (13,401,814)
Cash deposits returned to customers - -
Net cash provided (used) by operating activities 16,101,343 2,509,179 Cash flows from noncapital financing activities:

Cash transferred from other funds - -
Cash transferred to other funds (801,838) (1,642,000)
Interfund loan receivable 280,303 -
County/developer project share - -
Connection fees 6,792,887 -
Net cash provided (used) by noncapital financing activities 6,271,352 (1,642,000) Cash flows from capital and related financing activities:

Principal payments:

Notes/Loans/Bonds (7,670,000) (280,303)
Lease payments - -
Capital contributions - -
Interest paid (5,423,250) (42,898)
Proceeds from lease activities 289,763 -
Purchase of capital assets - -
Proceeds from sale of capital assets - 35,340
Construction in progress (7,072,445) (1,145,464)
Net cash provided (used) by capital and related financing activities (19,875,932) (1,433,325) Cash flows from investing activities:

Interest received 623,981 290,448
Net increase (decrease) in the fair value of investments (1,649,398) (450,215) Net cash provided by investing activities (1,025,417) (159,767) Net increase (decrease) in cash and investments 1,471,346 (725,913) Cash and investments - Beginning of year 82,631,689 21,894,097 Cash and investments - End of year $ 84,103,035 $ 21,168,184 The accompanying notes are an integral part of these financial statements. 40 River &
Agriculture
Water
Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$ 5,993,940 $ 30,812,206 $ 321,737 $ 113,013 $ 138,579,461 $ 54,499,516 - - 9,850 - 80,137 1,850,066
(5,705,634) (30,213,506) (493,924) (222,718) (98,915,416) (42,127,814) (1,410,992) (1,251,322) - - (23,181,010) (12,813,625)
- (328,478) - - (328,478) -
(1,122,686) (981,100) (162,337) (109,705) 16,234,694 1,408,143 - - - 100,000 100,000 7,267,001
(524,500) (38,500) (4,267) (12,998) (3,024,103) (67,563) - - - - 280,303 -
- - - - - -
- 1,947,593 - - 8,740,480 -
(524,500) 1,909,093 (4,267) 87,002 6,096,680 7,199,438
- - - - (7,950,303) -
- (678,991) - - (678,991) -
- - 560,825 - 560,825 -
- (668,624) - - (6,134,772) -
- - 171,491 - 461,254 -
- - (581,711) - (581,711) (13,645,398)
- 10,477 - - 45,817 1,421,379
(1,380,333) (5,736,116) - - (15,334,358) -
(1,380,333) (7,073,254) 150,605 - (29,612,239) (12,224,019) 36,888 158,564 10,867 104 1,120,852 173,364
(219,109) (979,969) (18,223) 146 (3,316,768) (1,143,944) (182,221) (821,405) (7,356) 250 (2,195,916) (970,580)
(3,209,740) (6,966,666) (23,355) (22,453) (9,476,781) (4,587,018) 14,186,376 58,072,393 959,288 87,926 177,831,769 71,260,941 $ 10,976,636 $ 51,105,727 $ 935,933 $ 65,473 $ 168,354,988 $ 66,673,923 The accompanying notes are an integral part of these financial statements. 41 CITY OF BAKERSFIELD
Statement of Cash Flows (concluded)
Proprietary Funds
For the Fiscal Year Ended June 30, 2022
Wastewater
Treatment
Refuse
Collection
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) $ (2,500,168) $ 8,056,998
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense 20,156,501 170,623
(Increase) decrease in accounts receivable (64,603) 470,697 (Increase) decrease in inventories - -
(Increase) decrease in prepaid items - -
Increase (decrease) in accounts payable 269,647 (2,669,301) Increase in workers' compensation claims - -
Increase (decrease) in unearned revenue - (1,764)
Increase (decrease) in customers' deposits 416,863 (26,851) Increase (decrease) in compensated absences 16,397 7,920 Increase (decrease) in net pension liability (4,375,771) (7,800,709) Increase (decrease) in deferred outflows/inflows of resources for pensions 3,234,520 5,700,164 Increase (decrease) in net other post-employment benefits liability (815,995) (1,683,303) Increase (decrease) in deferred outflows/inflows of resources for OPEB 156,212 284,705 Increase (decrease) in deferred inflow of resources for leases (392,260) - Net cash provided (used) by operating activities $ 16,101,343 $ 2,509,179 Noncash investing capital and financing activities:

Contribution of equipment from other departments $ - $ - Contributions of infrastructure and improvements
by developers $ 7,480,709 $ -
42 River &
Agriculture
Water
Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$ (502,073) $ (6,494,343) $ (101,392) $ (210,995) $ (1,751,973) $ (12,058,314) 547,539 6,945,376 144,192 90,628 28,054,859 9,604,315
(411,514) (684,401) 12,374 (3,300) (680,747) (100,402)
- - - - - (222,779)
- - - - - (836)
(170,330) (636,803) (15,443) 13,962 (3,208,268) (940,840) - - - - - 6,769,000
- - - - (1,764) -
(26,707) 246,306 - - 609,611 -
(10,250) (77,311) 921 - (62,323) (39,973)
(1,089,604) (900,223) (106,189) - (14,272,496) (3,511,348) 799,129 665,556 76,158 - 10,475,527 2,556,585
(305,203) (59,534) - - (2,864,035) (762,022)
46,327 14,277 - - 501,521 114,757
- - (172,958) - (565,218) -
$ (1,122,686) $ (981,100) $ (162,337) $ (109,705) $ 16,234,694 $ 1,408,143 $ - $ - $ - $ - $ - $ 1,981,312
$ - $ 3,629,894 $ - $ - $ 11,110,603 $ -
43 44
Fiduciary Fund Financial Statements
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individual private organizations, other governmental units and/or other funds. Detailed combining statements for Fiduciary Funds are located in the Supplementary Information section. Below are descriptions of the generic fund types within this category and specific funds within each fund type.

Private Purpose Trust Funds
Redevelopment Successor Agency - T he Bakersfield Redevelopment Agency ceased activities in February 2012. All non- housing related assets, liabilities and activities have been transferred to the City and are accounted for in a trust fund.

Planning Habitat Trust Fund - This fund is used to account for monies collected from developers to be used to purchase suitable land to provide habitat for endangered species. After the land is purchased, it is transferred to the State Fish and Game Department for maintenance.

Bakersfield Affordable Housing Trust Fund - This fund will assist in the creation and preservation of affordable housing in the City of Bakersfield for the benefit of very low, low and moderate-income households as well as address the housing needs of the homeless population.

Pension and Other Employee Benefit Trust Funds
Fire Relief and Pension Trust Fund - This fund is used to account for the accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 2, 1972.

Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund - This fund is used to account for the City's post-retirement medical benefit plan. The City provides medical insurance coverage through contributions to eligible retirees' insurance premiums.

Custodial Funds
Special Deposits Fund - This fund is used to account for the collection by the City as agent for organizations operated under the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits, deposits for affordable housing programs and bid deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants, and other revenues held in trust pending disposition of contingencies.

Improvement Districts Fund - T his fund is used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the benefited properties. A trustee administers the periodic payment to the bondholders. In addition, Community Service Districts created for the West Ming and Old River Ranch developments are accounted for in this section. These funds are collected to be used to pay for public safety costs in the applicable communities. 45 CITY OF BAKERSFIELD
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Custodial
Funds
Assets:

Cash $ 26,546,902 $ 6,883,930 $ 32,754,025
Accounts receivable - - 500
Interest receivable 52,330 - 13,911
Due from other governmental agencies - - 48,287
Investments
Domestic equities - 23,086,958 -
Fixed income - 57,882,200 -
Total investments - 80,969,158 -
Land held for resale 60,895 - -
Total assets 26,660,127 87,853,088 32,816,723
Liabilities:

Payables:

Accounts payable 9,800 - -
Advances from grantors and third parties 2,596,376 - -
Deposits - - 29,674,795
Accrued bond interest - - 268,456
Bonds 1,915,000 - 2,873,472
Notes 9,017,606 - -
Total liabilities 13,538,782 - 32,816,723
Net Position:

Restricted for:

Individuals, organizations and other governments 13,121,345 - - Other post-employment benefits - 87,853,088 -
$ 13,121,345 $ 87,853,088 $ -
The accompanying notes are an integral part of these financial statements. 46 CITY OF BAKERSFIELD
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2022
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds Custodial Funds
Additions
Contributions to pooled investments $ - $ 8,640,002 $ - Developer fees 963,809 - -
Successor agency property tax deposits 2,613,738 - -
Charges for services 3,133,725 - -
Assessment District Contributions - - 3,859,150
Special Deposit Contribution - - 122,424,259
Other Contributions - - 3,259,850
Other income / (loss) (8,839) - 471,128
Interest income (loss) 98,710 (10,148,301) (44,632)
Investment expenses - (242,216) -
Net investment income 98,710 (10,390,517) (44,632)
Total additions 6,801,143 (1,750,515) 129,969,755
Deductions:

Benefits - 3,161,526 -
Purchase of uninhabited land 210,870 - -
Obligation retirement 3,662,531 - 4,007,062
Bond - Interest - - 606,593
Other Distributions - - 125,356,100
Total deductions 3,873,401 3,161,526 129,969,755
Transfers in 6,644,357 - -
Change in net position 9,572,099 (4,912,041) -
Net position - beginning of year 3,549,246 92,765,129 - Net position - end of year $ 13,121,345 $ 87,853,088 $ - The accompanying notes are an integral part of these financial statements. 47 48

CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the City of Bakersfield (the “City”) have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). The follow ing summary of the City’s significant accounting policies is presented to assist the reader in interpreting the basic financial statements and other data in this report. These policies should be viewed as an integral part of the accompanying basic financial statements.

A. Description of Reporting Entity
The City of Bakersfield, California, is a California Charter City, incorporated on January 11, 1898, and serves as the county seat of the County of Kern, California (the “County”). The City is a full-service city and operates under a Council - Manager form of government, providing the following services as authorized by its Charter: General government; public safety; public works; and development and conservation.

As required by GAAP, these basic financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government.

B. Basis of Presentation
Government-Wide Financial Statements
The Government-Wide financial statements (the statement of net position and the statement of activities) report information of all of the non-fiduciary activities of the primary government and its component units. For the most part, eliminations have been made to minimize the double counting on internal activities. I nternal activities for services provided and used that are not eliminated include water, solid waste and sewer services provided to various other functions of the government. These statements distinguish between the governmental and business-type activities o f the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Some functions include expenses that are, in essence, indirect expenses of other functions resulting from charges among funds or programs for centralized services. Program revenues include: 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Net position is restricted when constraints placed on it are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
49 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Basis of Presentation (continued)
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds and the blended component units. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as non-major funds.

Proprietary fund operating r evenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. E xchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses for enterprise funds and internal service funds include cost of sales and services, administrative expenses, and depreciation of capital assets. A s used in this section, the term depreciation can include amortization of intangible assets. All expenses not meeting this definition are reported as nonoperating expenses.

The City reports the following major governmental funds:

General Fund - The General Fund is the principal operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. F or the City, the General Fund includes basic governmental activities, such as general government, public safety, public works, and community services.

Transient Occupancy Taxes Fund - T he Transient Occupancy Taxes Fund is used to account for transient occupancy tax revenues (hotel tax) and expenditures funded by this revenue source. T he Rabobank Arena and Convention Center and the Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund. This fund is also used to account for the operations of the Visit Bakersfield division of the City.

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

Gas Tax & Road Fund - The Gas Tax & Road Fund is used to account for the City’s share, based upon population, of state gasoline taxes. State law requires these gasoline taxes to be used to maintain streets or for major street construction. This fund also accounts for other State and Federal grant revenues related to street maintenance or construction, including the Federal earmark Thomas Roads funds.

Capital Outlay Fund - The Capital Outlay Fund is used to account for the cost of capital projects financed by local revenues and various grant/loan proceeds for capital expenditures. This fund also accounts for the special Utility Franchise/Surcharge Fund created by the City Council to account for the specified local road project costs funded by the selected electricity and gas franchise surcharge fees. In addition, funds contributed by the County to be used to cover a portion of the costs of the local match needed for the Thomas Roads projects are accounted for in this fund.

Park Improvement Fund - The Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646). F ees 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 - T he 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 w hen a building permit for the development project is obtained, and are based upon the amount of traffic the development will generate. 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. 50 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Basis of Presentation (continued)
Redevelopment Successor Agency - Housing Fund - T he Redevelopment Successor Agency - Housing Fund was 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.

The City reports the following major proprietary (enterprise) funds:

Wastewater Treatment Fund - T he Wastewater Treatment Fund is used to account for the provision of sewer service to the residents of the City and some residents of the County. This fund also accounts for the activities related to the debt issuance, which provided for the Wastewater Treatment Facilities.

Refuse Collection Fund - The Refuse Collection Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such services are accounted for in this fund.

River & Agricultural Water Fund - The River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural purposes to users within the City and some users within the County (some Kern River water is exchanged for State Aqueduct water for domestic water purposes). A ll activities necessary to provide such services are accounted for in this fund.

Domestic Water Fund - The Domestic Water Fund is used to account for the provision of water service to residents of the City and County connected to the City's system. All activities necessary to provide such services are accounted for in this fund.

General Aviation Fund - T he General Aviation Fund is used to account for the acquisition and operation of the Bakersfield Municipal Airpark located on Union Avenue. The majority of acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation Administration.

Offstreet Parking Fund - The Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the related debt was retired in August 1994, and subsequently, the title was transferred to the City.

Internal Service Funds - T he Internal Service Funds are used to account for the cost of goods or services provided by one department or agency to other departments or agencies of the governmental unit on a reimbursement basis. The City accounts for its self-insurance and equipment management activities as internal service funds.

The City reports the following additional fund types:

Private Purpose Trust Funds - The Planning Habitat Trust Fund is used to account for monies collected from developers to be used to purchase suitable land to provide habitat for endangered species. After the land is purchased, it is transferred to the State Fish and Game Department for maintenance. The Bakersfield Affordable Housing Trust Fund will assist in the creation and preservation of affordable housing in the City for the benefit of very low, low and moderate-income households, as well as address the housing need of the homeless population. The City also records the assets, liabilities, and activities of the Redevelopment Successor Agency in a separate trust fund.

Pension and Other Employee Benefit Trust Funds - The Fire Relief and Pension Trust Fund is used to account for the annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 26, 1972. The Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund is used to account for the City’s postretirement medical benefit plan in which the City provides medical insurance coverage through contributions to eligible retirees’ insurance premiums.

Custodial Funds - The Custodial Funds account for assets held by the City as an agent for various local governments or other entities. The Special Deposits Fund is used to account for the collection by the City as agent for organizations operated under the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and 51 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Basis of Presentation (continued)
bid deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants and other revenues held in trust pending disposition of contingencies. T he Improvement Districts Fund i s used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Bond Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the benefited properties. A t rustee provides the periodic payment to the bondholders. This fund also accounts for the special assessments and taxes collected within the boundaries of Community Service Districts within the City.

C. Measurement Focus and Basis of Accounting
The government-wide, proprietary, private purpose trust, and pension and other employee benefit trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. R evenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donations. On an accrual basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. R evenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. The custodial funds utilize the accrual basis of accounting to report assets and liabilities but technically have no measurement focus.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain State and Federal grants and charges for services are accrued w hen their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. E xpenditures are generally recorded when a liability is incurred, as under the accrual basis of accounting. H owever, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. O perating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds' principal ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating.

D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items Cash and Investments
Cash balances of each of the City's funds, except for certain Trust and Custodial Funds, are pooled and invested by the City.

Income earned from pooled investments is allocated to each of the funds based on average pooled cash balances during the year. Deficit cash balances are classified as due to other funds and funded by the General Fund or related operating fund.

The City applies GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. This statement adheres to GASB reporting guidelines which generally requires that investments be reported at their fair value and that all changes in fair value be reflected as income of the period in which they occur.

Statutes authorize the City to invest in obligations of the United States Treasury, agencies and instrumentalities, commercial 52 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) paper, bankers' acceptances, repurchase agreements, money market funds, and the State Treasurer's investment pool. The City's Pension Trust Fund is also authorized to invest in corporate bonds rated A or better by a national rating system generally recognized and used by banks and investment brokers in the United States.

Investments are comprised of obligations of the United States Treasury, agencies and instrumentalities, cash, time certificates of deposit, mutual funds, bankers' acceptances, money market accounts, deposits in the State of California Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP). Investments are stated at fair value.

Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. L oans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statement as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses.

Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Receivables
All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Trade accounts receivable in excess of 180 days comprise the trade accounts receivable allowance for uncollectible accounts.

Inventory and Prepaid Items
Inventory is valued at average cost applied on a first-in, first-out (FIFO) basis. The reserve for prepaid expenses relates to certain payments to vendors for costs applicable to future accounting periods. The cost of both inventories and prepaid items are recorded as expenditures/expenses when consumed rather than when purchased.

Capital Assets
Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the government-wide financial statements to the extent the City’s capitalization thresholds are met.

Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible water rights are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an estimated useful life in excess of one year and an initial individual cost of more than $50,000 for infrastructure and $5,000 for all other capital assets.

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation in the majority of instances. When assets are donated in relation to a service concession arrangement, they are reported at acquisition cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. 53 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. I nterest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight- line method over the following estimated useful lives:

Infrastructure 10 to 70 years
Buildings, structures and improvements 5 to 40 years
Transmission and distribution equipment 5 to 50 years
Rolling equipment 2 to 30 years
Office equipment 3 to 10 years
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Debt principal payments of both governmental and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. B ond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.

In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when paid. Governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. T he face amount of debt issued is reported as other financing sources. P remiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. I ssuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Deferred Outflows and Inflows of Resources
The City records deferred outflows and inflows of resources in the government-wide, governmental, and proprietary fund type financial statements.

The Statements of Net Position and Balance Sheets will sometimes report a separate section for deferred outflow s of resources, defined as representing a consumption of net assets that applies to future periods, or deferred inflows of resources, defined as representing an acquisition of net assets that applies to future periods. The City has items that qualify for reporting in these categories and are detailed in a separate note disclosure. 54 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) Net Position/Fund Balance
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.  Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. A ccumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.  Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors, laws, or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted Net Position - T his category represents net position of the City, not restricted for any project or other purpose.

As of June 30, 2022, net position is as follows:

Governmental
Activities
Business-Type
Activities Total
Net investment in capital assets $ 1,369,954,461 $ 754,164,100 $ 2,124,118,561 Restricted 21,536,491 20,200,000 41,736,491
Unrestricted (39,763,272) 106,968,986 67,205,714
Total net position $ 1,351,727,680 $ 881,333,086 $ 2,233,060,766 Fund balances of the governmental funds are report using a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported. Fund balances for governmental funds are segregated as follows:
 Nonspendable Fund Balance – includes net resources that cannot be spent because of their form or because of legal or contractual limitations, and therefore must remain intact.  Restricted Fund Balance – i ncludes net resources that have externally enforceable limitations on their use. T hese limitations can be established by creditors, grantors, or by laws and regulations.  Committed Fund Balance – includes amounts with self-imposed limitations and are set in place prior to the end of the fiscal year. Commitments are set forth by the formal action of the City’s highest level of decision-making authority, the City Council (via resolutions or ordinances), and the limitations require that same level of authority to be removed.  Assigned Fund Balance – i ncludes amounts for which the intended use results in limitations but do not meet the requirements for either the “Restricted” or “Committed” classifications. I ntended use can be established by the City Council, a governing committee or board, or by a City official designated as having that authority as provided by the Fund Balance Policy.
 Unassigned Fund Balance – is the residual balance of the General Fund not included in the other classifications. 55 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) The City Council establishes, modifies or rescinds fund balance commitments though approval of contracts for services and supplies that require City Council authorization through resolution. Fund balance assignments are made by agreements entered into by department heads, and their designees, for specific purposes. The City Council also establishes fund balance assignments through the adoption of the budget and subsequent budget amendments. Assignments are generally temporary and as such, additional action is not usually needed for assignments to be removed. The City Council approved, through resolution, a Fund Balance policy that established these rules for fund balance commitments and assignments in the General Fund. It was not deemed necessary to include a policy to achieve and maintain a specific level of unrestricted fund balance in the General Fund.

Fund Balance Flow Assumptions
The City will sometimes fund outlays for a specific purpose from restricted and unrestricted resources (committed, assigned, and unassigned fund balance). A flow assumption must be made about the order of how these resources will be applied to properly calculate the amounts reported as restricted, committed, assigned, and unassigned. It is the City’s policy to consider restricted fund balance to be used completely before any components of unrestricted fund balance. When the components of unrestricted fund balance are used for the same purpose, the amount classified as committed is used first, followed by assigned, and unassigned is applied last.

Property Taxes
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate is lim ited to 1% of market value.

This property tax rate limitation may only be increased through voter approval. The County is the sole agency responsible for levying and collecting the property taxes and distributing them to taxing jurisdictions. T axes are allocated and distributed based upon each taxing jurisdiction's assessed valuations and upon any voter-approved debt override on the tax rate.

The property tax calendar for the City is as follows:

Valuation date January 1
Lien date March 1
Levy dates July 1 through June 30
Due dates November 1; February 1
Collection dates December 10; April 10
56 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) Pension Plan
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employee's Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, are reported at cost.

Cash Flow Statements
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, deposits, short-term investments and cash and investments with fiscal agents. Cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less meet this definition.

Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

E. Stewardship, Compliance, and Accountability
Budgets and Budgetary Accounting
The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as follows:

1. Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted to obtain taxpayer comments.

3. The City Council legally enacts the budget by resolution before July 1.

The City Manager is authorized to transfer budgeted amounts between departments within any fund and approve reductions of budgeted amounts. Since expenditures may not exceed budgeted appropriations at the fund level, any revisions that alter the total appropriations of any fund are to be approved by the City Council. Projects budgeted w ithin the current fiscal year but not yet completed can be re-appropriated the following fiscal year with City Manager approval. A ll other unencumbered appropriations lapse at year-end. Encumbered amounts are re-appropriated in the ensuing fiscal year budget.

Budgets are adopted for all governmental fund types and are prepared on a basis consistent w ith GAAP. Budgeted amounts are 57 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Stewardship, Compliance, and Accountability (continued) as originally adopted, or as amended by the City Council. D uring the fiscal year ended June 30, 2022, the City Council approved $201,311,908 of increases to the originally adopted budget, excluding carryovers of prior year encumbered balances and selected capital appropriations.

Deficit Net Position
The Self-Insurance Internal Service Fund reported a deficit in net position of $57,008,096 at the close of the fiscal year. The continued deficit is the result of a significant increase in the workers' compensation and general liability calculated in the City’s most recent actuarial study. Workers' compensation charges can fluctuate significantly from year to year and staff will continue to adjust departmental rates accordingly to maintain sufficient funding levels.

The Community Development Block Grant Fund reported a deficit in net position of $320,921 at the close of the fiscal year.

The deficit is caused development activity funded by this activity that will have supplemental resources added to to the fund in the subsequent year.

Reclassification and Eliminations
Interfund balances must generally be eliminated in the government-wide financial statements, except for net residual amounts due between governmental activities. A mounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once, in the function in which they are allocated.

F. New Accounting Pronouncements
During the fiscal year ending June 30, 2022, the City implemented the following standards:

GASB issued Statement No. 87, Leases. T he objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financing of the right to use an underlying asset. Upon implementation, there was a significant effect on the City's financial statements for the Fiscal Year 2021-22.

GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objective of this statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. Upon implementation, there was no effect on the City's accounting or financial reporting.

GASB issued Statement No. 92, Omnibus 2020. The objectives of this statement are to enhance comparability in accounting and financial reporting to improve consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB statements. Upon implementation, there was no effect on the City's accounting or financial reporting.

GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this statement is to address those and other accounting and financial reporting implications that result from the replacement of an interbank offered rate (IBOR).

Upon implementation, there was no effect on the City's accounting or financial reporting. 58 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. New Accounting Pronouncements (continued)
GASB issued 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 Statement No. 14 and No. 84, and a supersession of GASB Statement No. 32. The objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for the Internal Revenue Code Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. Upon implementation, there was no effect on the City's accounting or financial reporting.

Recently released standards by GASB affecting future years are as follows:

In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related to note disclosures. The City has elected not to early implement GASB Statement No. 91 and has not determined its effects on the City's financial statements.

The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 (Fiscal Year 2022- 23).

In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The City has elected not to early implement GASB Statement No. 94 and has not determined its effects on the City's financial statements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 (Fiscal Year 2022-23).

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users. The City has elected not to early implement GASB Statement No. 96 and has not determined its effects on the City's financial statements. The City has elected not to early implement GASB Statement No. 96 and has not determ ined its effects on the City's financial statements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 (Fiscal Year 2022-23).

In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this statement are to enhance comparability in accounting and financial reporting to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The City has elected not to early implement GASB Statement No. 99 and has not determined its effects on the City's financial statements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2023 (Fiscal Year 2023-24).

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections . The objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The City has elected not to early implement GASB Statement No. 100 and has not determined its effects on the City's financial statements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2023 (Fiscal Year 2023-24).

In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition measurement guidance for compensate absences.

The City has elected not to early implement GASB Statement No. 101 and has not determ ined its effects on the City's financial 59 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. New Accounting Pronouncements (continued)
statements. The requirements of this Statement are effective for reporting periods beginning after December 15, 2023 (Fiscal Year 2024-25).

NOTE 2 - CASH AND INVESTMENTS
Cash and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 570,439,455
Fiduciary funds:

Cash and investments 147,154,015
$ 717,593,470
Cash and investments as of June 30, 2022, consist of the following:

Cash on hand $ 1,830,924
Deposits with financial institutions 32,641,979
Investments 696,271,860
GASB Stmt. No. 31 Fair Value Adjustment (13,151,293)
$ 717,593,470
Investment Authorized by the California Government Code and the City’s Investment Policy The table below i dentifies the investment types that are authorized for the City by the California Government Code, or the City’s investment policy, where more restrictive. The table also identifies the more restrictive provision of the California Government Code or the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk.

This table does not address investment of any debt proceeds held by bond trustees that are governed by the provisions of the City’s debt agreements, rather than the general provisions of either the California Government Code or the City’s investment policy.

Maximum
Percentage Maximum
Authorized Investment Types of Portfolio Maturity
U.S. Treasury Bills, Notes and Bonds 0 to 100% 5 Years
U.S. Government Agency Obligations 20% per agency 5 Years Bankers' Acceptances 40% 180 Days
Commercial Paper 25% 270 Days
Repurchase Agreements 30% 90 Days
Local Agency Investment Fund 40% N/A
Time Certificates of Deposit 40% 5 Years
Public Agency Demand Accounts 30% N/A
Mutual Funds 20% N/A
60 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Investments Authorized by Debt Agreements
The City and its component units have $371,610 in investments held by bond trustees pledged to the payment or security of certain debt issues. These investments are held in direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States Government or an agency thereof. The California Government Code provides that monies held by a bond trustee pledged to the payment or security of debt issues, in absence of specific statutory provisions governing the issuance of the debt, may be invested in accordance with the ordinances, resolutions, or indentures specifying the types of investments the respective bond issue’s trustee may make. The obligations described above are authorized per the investment agreements with the bond trustees and include, but are not limited to, Federal Land Bank Bonds, Federal Home Loan Bank notes and bonds, Export-Import Bank notes and guaranteed participation certificates, obligations of or fully guaranteed by the Government National Mortgage Association, Federal National Mortgage Association notes, debentures and guaranteed certificates of participation, obligations of the International Bank of Reconstruction and Development and Federal Home Loan Mortgage Corporation notes.

Interest Rate Risk
Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As part of the City’s investment policy, one of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Remaining Maturity (In Months)
Investment Type
Fair
Value Cost
12 Months
Or Less
13 - 24
Months
25-60
Months
More Than
60 Months
U.S. Government Agency Obligations:

Federal Farm Credit Bank $ 81,716,576 $ 86,518,390 $ 4,000,000 $ 9,997,500 $ 72,520,890 $ - Federal Home Loan Bank 85,300,150 90,481,000 - 8,990,250 81,490,750 - Federal Home Loan Mortgage Corp. 40,597,657 42,333,747 307,224 13,000,000 29,026,523 - Federal National Mortgage Assn. 20,050,642 21,483,182 - 3,000,000 18,483,182 - Local Agency Investment Fund 150,416,142 150,416,142 150,416,142 - - - CAMP 215,721,927 215,721,927 215,721,927 - - -
Mutual Funds (1) 88,945,862 88,945,862 88,945,862 - - - Investment Contracts 371,610 371,610 - - - 371,610
Total $683,120,566 $696,271,860 $459,391,155 $ 34,987,750 $201,521,345 $ 371,610 (1) See Note 17 for Other Post-Employment Benefits.
61 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations Except as inherent by their nature as disclosed above, the City’s investments (including those held by a bond trustee) are not highly sensitive to interest rate fluctuations.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment.

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year end for each investment type. On August 5, 2011, the rating agency of Standard & Poors (S&P) assigned a negative outlook to the credit rating of the United States government. On August 8, 2011, S&P then downgraded that credit rating to AA+ from AAA.

Remaining as of the Year-End
Investment Type
Minimum
Legal
Rating AAA AA+
Not
Rated
U.S. Government Agency Obligations:

Federal Farm Credit Bank $ 86,518,390 $ - $ 86,518,390 $ - Federal Home Loan Bank 90,481,000 - 90,481,000 -
Federal Home Loan Mortgage Corp. 42,333,747 - 42,333,747 - Federal National Mortgage Assn. 21,483,182 - 21,483,182 - Local Agency Investment Fund 150,416,142 - - 150,416,142 CAMP 215,721,927 - - 215,721,927
Mutual Funds (1) 88,945,862 88,945,862 - -
Investment Contracts 371,610 - - 371,610
Total $696,271,860 $ 88,945,862 $240,816,319 $366,509,679 (1) See Note 17 for Other Post-Employment Benefits
Concentration of Credit Risk
The City’s investment policy does not limit the amount that can be invested in any one issuer beyond the limitations stipulated by the California Government Code. Investments in any one issuer (other than United States Treasury securities, mutual funds and external investment pools) that represent 5% or more of the City’s total investments are as follows.

Issuer Investment Type Reported Amount Percentage
Federal Farm Credit Bank Federal Agency Securities $ 86,518,390 12% Federal Home Loan Bank Federal Agency Securities $ 90,481,000 13% Custodial Credit Risk
Custodial credit risk for deposits is the risk that the City will not be able to recover its deposits or will not be able to recover collateral securities in the possession of an outside party if a depository institution fails. T he custodial credit risk for investments is the risk that the City will not be able to recover the value of its investment or collateral securities held by another party if the counterparty (e.g., broker-dealer) to a transaction fails. T he California Government Code and City’s investment 62 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
policy do not contain legal or policy requirements that w ould limit exposure to custodial credit risk for deposits or investments, other than the following provision applicable to deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. C alifornia law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2022, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code. As of June 30, 2022, all of the City’s investments were held by the City itself or by a broker-dealer (counterparty) other than the broker-dealer used by the City to purchase the securities in the City’s name.

Investment in State Investment Pools
Investments are stated at fair value. Fair value is established quarterly based on quoted market prices received from the securities custodian. Fair value of investments held fluctuates with interest rates. The fair value of participants’ position in the pool is the same as the value of the pool shares. The value of participants’ equity withdrawn is based on the book value of the participants’ percentage participation at the date of such withdrawal.

The California State Treasurer’s Office operates the Local Agency Investment Fund (LAIF). The LAIF is available for investment of funds administered by California local governments and special districts and is not registered with the Securities and Exchange Commission (SEC) as an investment company. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code. California Asset Management Program (CAMP) is a California Joint Powers Authority established in 1989 to provide California public agencies w ith professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).

The LAIF and CAMP operate and report to participants on an amortized cost basis. For both the LAIF and CAMP, the income, gains, and losses, net of administration fees, are allocated based upon the participant’s average daily balance. Deposits in the LAIF and CAMP are not insured or otherwise guaranteed by the State of California, and participants share proportionally in any realized gains or losses on investments. The fair value of the LAIF and CAMP investment pools are approximately equal to the value of the pool shares.

Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy used to measure the fair value of the asset is based on the following:

Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities, that each fund has the ability to access.

Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs).

Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each fund's own assumptions used in determining the fair value of investments).

The City has a reported fair value of investments of $683,120,566, of which $227,665,025 are valued using Level 1 inputs.

These include all of the U.S Government Agency Obligations and Time Certificates of Deposit. The remaining investments are valued using Level 2 inputs.
63 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES Accounts receivable at June 30, 2022 o f the City's major individual funds and non-major and internal service funds in the aggregate, including the applicable allowance for uncollectible accounts, are as follows:

Accounts Receivable -
Governmental Funds:

General
Fund
Transient
Occupancy
Taxes
Fund
Community
Development
Block Grant
Fund
Capital
Outlay
Fund
Redevelopment
Successor
Agency -
Housing Fund
Non-Major
Governmental
Funds
Internal
Service
Funds
Total
Governmental
Activities
Taxes $ - $1,850,069 $ - $ - $ - $ - $ - $ 1,850,069
Accounts 9,777,236 - 14,692,554 194,998 216 4,828,529 180,280 29,673,813 Gross Receivables 9,777,236 1,850,069 14,692,554 194,998 216 4,828,529 180,280 31,523,882 Less: Allowance
for Uncollectible - - - - - - (177,990) (177,990)
Total Accounts Receivable -
Net $ 9,777,236 $1,850,069 $ 14,692,554 $ 194,998 $ 216 $ 4,828,529 $ 2,290 $ 31,345,892 Accounts Receivable -
Proprietary Funds:

Wastewater
Treatment
Fund
Refuse
Collection
Fund
Agricultural
Water
Fund
Domestic
Water
Fund
General
Aviation
Fund
Offstreet
Parking
Fund
Total
Business-Type
Activities
Accounts $ 1,761,168 $ 1,754,930 $ 922,793 $ 4,142,915 $ 645 $ 4,740 $ 8,587,191 Gross Receivables 1,761,168 1,754,930 922,793 4,142,915 645 4,740 8,587,191 Less: Allowances for
Uncollectible - - - - - - -
Total Accounts Receivable - Net $ 1,761,168 $ 1,754,930 $ 922,793 $ 4,142,915 $ 645 $ 4,740 $ 8,587,191 64 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES (continued) Accounts payable and accrued liabilities at June 30, 2022, are composed of the following:

Accounts Payable and
Accrued Liabilities General
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Covid Relief
Capital
Outlay
Park
Improvement
Governmental Activities: Fund Fund Fund Fund Fund Fund Fund Accounts payable $ 11,613,443 $ 63,346 $ 1,718,839 $ 7,440,024 $ 199,015 $ 3,170,785 $ 3,738,706 Due to other governments 3,800,000 - - - - - -
Total Accounts Payable
and Accrued Liabilities $ 15,413,443 $ 63,346 $ 1,718,839 $ 7,440,024 $ 199,015 $ 3,170,785 $ 3,738,706 Accounts Payable and
Accrued Liabilities
Transportation
Development
Non-Major
Governmental
Internal
Service
Total
Governmental
Governmental Activities: Fund Funds Funds Activities
Accounts payable $ 1,529,346 $ 186,197 $ 3,293,052 $ 32,952,753 Due to other governments - - - 3,800,000
Total Accounts Payable
and Accrued Liabilities $ 1,529,346 $ 186,197 $ 3,293,052 $ 36,752,753 Accounts Payable and
Accrued Liabilities -
Wastewater
Treatment
Refuse
Collection
River and
Agricultural
Water
Domestic
Water
General
Aviation
Offstreet
Parking
Total
Business-Type
Business-Type Activities: Fund Fund Fund Fund Fund Fund Activities Accounts payable $ 2,730,134 $ 3,340,834 $ 586,944 $ 3,969,709 $ 15,850 $ 35,214 $ 10,678,685 Accrued interest 1,554,919 - - - - - 1,554,919
Total Accounts Payable
and Accrued Liabilities $ 4,285,053 $ 3,340,834 $ 586,944 $ 3,969,709 $ 15,850 $ 35,214 $ 12,233,604 NOTE 4 - DUE FROM OTHER GOVERNMENTS
Amounts due from other governments at June 30, 2022 are comprised of the following:

Federal
Government
State of
California
County/City
Agencies
Total
Governmental
Activities
Business-Type
Activities
Total
Reporting
Entity
Senate Bill (SB) 90 Claims $ - $ 2,067,056 $ - $ 2,067,056 $ - $ 2,067,056 Sales Tax - 36,644,547 - 36,644,547 - 36,644,547
Property Tax - - 537,065 537,065 169,487 706,552
Caltrans - 28,287,178 - 28,287,178 72,604 28,359,782
SB 1 - Road Maintenance & Rehabilitation - 2,136,285 - 2,136,285 - 2,136,285 Proposition 68 - 192,403 - 192,403 - 192,403
Department of Fish & Game - 1 - 1 - 1
Economic/Community Development 2,109,355 - - 2,109,355 - 2,109,355 Department of Natural Resources - 83,550 23,666 107,216 - 107,216 Kern County Waste Management - - 100,000 100,000 1,716,551 1,816,551 Totals $ 2,109,355 $ 69,411,020 $ 660,731 $ 72,181,106 $ 1,958,642 $ 74,139,748 65 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS
Capital asset activities for the year ended June 30, 2022, were as follows:

Balance Balance
June 30, 2021 Adjustments Additions Retirements June 30, 2022 Governmental Activities
Capital assets, not being depreciated
Land $ 449,935,266 $ - $ 395,296 $ - $ 450,330,562
Construction in progress 135,930,685 - 33,781,297 9,899,830 159,812,152 Total capital assets, not being depreciated 585,865,951 - 34,176,593 9,899,830 610,142,714 Capital assets, being depreciated
Buildings, structures and improvements 162,302,405 - 2,404,376 - 164,706,781 Infrastructure 1,825,180,288 - 47,086,238 - 1,872,266,526 Rolling equipment 108,236,497 - 13,788,495 6,496,932 115,528,060 Furniture and other equipment 20,077,033 (231,228) 1,966,293 17,202 21,794,896 Total capital assets, being depreciated 2,115,796,223 (231,228) 65,245,402 6,514,134 2,174,296,263 Less accumulated depreciation for
Buildings, structures and improvements (88,239,086) - (4,529,373) - (92,768,459) Infrastructure (1,180,249,693) - (59,775,315) - (1,240,025,008) Rolling equipment (58,810,957) - (9,073,456) (5,369,089) (62,515,324) Furniture and other equipment (13,905,634) 280,651 (1,094,507) (17,202) (14,702,288) Total accumulated depreciation (1,341,205,370) 280,651 (74,472,651) (5,386,291) (1,410,011,079) Total capital assets, being depreciated, net 774,590,853 49,423 (9,227,249) 1,127,843 764,285,184 Governmental activities capital assets, net $ 1,360,456,804 $ 49,423 $ 24,949,344 $ 11,027,673 $ 1,374,427,898 Business-Type Activities
Capital assets, not being depreciated
Land $ 23,987,225 $ - $ 48,908 $ - $ 24,036,133
Water rights 31,476,906 - - - 31,476,906
Construction in progress 15,144,382 - 9,719,435 7,917,071 16,946,746 Total capital assets, not being depreciated 70,608,513 - 9,768,343 7,917,071 72,459,785 Capital assets, being depreciated
Buildings, structures and improvements 334,045,347 - 2,000,642 59,606 335,986,383 Infrastructure 910,451,413 - 15,306,823 - 925,758,236
Equipment 84,524,291 - 7,718,556 126,755 92,116,092
Total capital assets being depreciated 1,329,021,051 - 25,026,021 186,361 1,353,860,711 Less accumulated depreciation for
Buildings, structures and improvements (146,425,085) - (7,902,246) (45,036) (154,282,295) Infrastructure (319,995,297) - (15,328,535) - (335,323,832) Equipment (49,050,101) - (4,824,079) (86,179) (53,788,001) Total accumulated depreciation (515,470,483) - (28,054,860) (131,215) (543,394,128) Total capital assets, being depreciated, net 813,550,568 - (3,028,839) 55,146 810,466,583 Business-type activities capital assets, net $ 884,159,081 $ - $ 6,739,504 $ 7,972,217 $ 882,926,368 66 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS (continued)
Depreciation and amortization expense was charged in the following functions in the Statement of Activities:

Governmental functions: Depreciation
General government $ 1,625,230
Public safety - Police 202,423
Public safety - Fire 752,630
Public works 68,026,950
Recreation and parks 3,216,266
Development services 649,152
Total $ 74,472,651
Business-type functions:

Wastewater treatment $ 20,156,505
Refuse collection 170,623
River & agricultural water 547,537
Domestic water 6,945,376
General aviation 144,192
Offstreet parking 90,627
Total $ 28,054,860
NOTE 6 - LAND HELD FOR RESALE
The City, as the Redevelopment Successor Agency, has been transferred real property to be held for a limited period that will be used for future development. The inventory for land held for resale is presented at the lower of cost or net realizable value though it is initially recorded at historical costs. Subsequently, the land could be adjusted to net realizable value if and w hen the City enters into agreements for development or sale of the property for less than its historical cost, w hen a property is impaired or when property value decreases due to market conditions.

Balance at Balance at
Redevelopment Successor Agency - Housing June 30, 2021 Additions Deletions June 30, 2022 Land Held for Resale $ 1,198,744 $ - $ - $ 1,198,744
$ 1,198,744 $ - $ - $ 1,198,744
67 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES
Other long-term receivables consist of the following:

Governmental Activities
Deferred loans receivable associated with the low and moderate income housing project. These loans bear 0-3% interest and are not due until ten years after the loan agreement date (also see deferred revenue at Note 9). $ 2,733,510
Mercy Housing, Madison Place Apartments, 55 year loan term, with 1/55 to be forgiven each year of compliance to agreement. 247,405
Amcal Santa Fe Apartments, 55 year loan term, repayment begins from residual receipts following the date that the housing project is put in service. 134,691 Down payment assistance loans. 1,587,718
19th Street Senior Plaza, LLC, a 55 year loan term upon recordation of Certificate of Completion. 1,688,375
Park 20th Apartments, a 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%. 2,720,055
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%. 9,023,333
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 2.0%. 1,962,792
CalHOME Downpayment Assistance for a grant from the State which provided downpayment and closing cost assistance to seventeen (17) families within the Metropolitan Bakersfield area. The assistance was provided to those families whose incomes were at or below 120% of area median income. The loans of up to $40,000 are forgiven at 1/15th per year. 223,430
Golden Empire Housing, Park Place Apartments, 55 year loan term beginning July 12, 1999, ending on July 12, 2054, with the interest payment being deferred for first ten years, until year 2010, with an interest rate of 1.5%. 807,355 Capital Vision Equities, City Center Senior Housing, 35 year loan term beginning on March 28, 2001, ending March 28, 2036, with an interest rate of 5.85%. 990,000 Canyon Hills Assembly of God, Senior Housing Project 30 year loan term beginning July 30, 2001 ending July 30, 2031, with an interest rate of 0%. 310,000 Mill Creek Courtyard CIC - SEPA - Senior Housing Project. A 55 year loan term beginning from the date of execution by the developer. 2,520,000 Face value of loans $ 24,948,664
68 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES (continued)
Current portion $ -
Long-term portion 24,948,664
Business-Type Activities
Notes receivable in the River & Agricultural Water Fund are for the amounts due from various customers/vendors.

These loans are non-interest bearing. $ 26,760
Total business-type noncurrent receivables $ 26,760
69 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS
Interfund transactions are comprised of loans, services provided, reimbursements, or transfers. Loans are reported as amounts “due to/due from” other funds or as “advances,” as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental activities and business-type activities are netted as part of the consolidation required to produce the government-wide financial statements.

Interfund receivable and payable balances at June 30, 2022 were:

Fund
Due from
Other Funds
Due to
Other Funds
Governmental Funds:

Major Funds:

General Fund $ 8,942,715 $ -
Community Development Block Grant Fund - 612,918
Gas Tax & Road Fund - 8,329,797
$ 8,942,715 $ 8,942,715
These balances are a result of expenditures incurred prior to the receipt of the related special revenue source.

Fund
Advances from
Other Funds
Advances to
Other Funds
Business Type Funds
Wastewater Fund - 2,719,697
Refuse Fund 2,719,697 -
$ 2,719,697 $ 2,719,697
This balance is a result in an advance from the Wastewater Fund to the Refuse Fund in order to purchase a recycling center and has nine years remaining on the repayment schedule.

Interfund transfers at June 30, 2022 consisted of the following:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General Fund $ 1,100,000 $ 65,456,162
Gas Tax & Road Fund - 97,500
Transient Occupancy Taxes Fund - 6,892,061
Community Development Block Grant Fund - 517,810
Capital Outlay Fund 66,523,381 5,797,000
Non-Major Funds:

State Safety Fund - 1,118,000
General Obligation Debt Fund 1,335,461 -
Subtotal 68,958,842 79,878,533
Private Purpose Trust Funds:
70 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued)
Transfers In Transfers Out
Affordable Housing Fund 6,644,357 -
Proprietary Funds:

Major Funds:

Wastewater Treatment Fund - 801,838
Refuse Collection Fund - 1,642,000
River & Agricultural Water Fund - 524,500
Domestic Water Fund - 38,500
General Aviation Fund - 4,267
Offstreet Parking Fund 100,000 12,998
Internal Service Funds:

Self-Insurance Fund - 67,563
Equipment Management Fund 7,267,001 -
$ 82,970,200 $ 82,970,199
Additional details regarding transfers in and out of various funds are provided below:
 The $1,100,000 transfer in to the General Fund is from the State Safety Fund that subsidized the cost of the traffic division of the police department for parking fine violations.
 The $65,456,162 transfer from the General Fund includes a transfer to the Capital Outlay Fund of $18,290,000 for various capital improvement projects, $772,324 to the General Obligation Debt Fund for the repayment of loans from PG&E for energy efficient retro fit projects, $100,000 to the Offstreet Parking Fund for security, $500,000 to the Facility Reserve Fund to replenish reserves, $1,644,357 to the Affordable Housing Fund to aid in the housing crisis, as well as $81,000 to the Equipment Fund for operating activity.
 The $6,892,061 transfers from the Transient Occupancy Taxes Fund include $6,814,000 transferred to the Capital Outlay Fund to fund a number of capital projects, $28,061 to the General Obligation Debt Fund for the repayment of a loan from PG&E for an energy efficiency retrofit at Rabobank Arena, and $50,000 to the Equipment Fund for additional funding to replace equipment.
 The $517,810 t ransfer from the Community Development Block Grant (CDBG) Fund to the General Obligation Debt Fund is for the repayment of a Section 108 loan.
 There were additional transfers to the Equipment Management Fund to purchase additional equipment for operations which include: the General Fund ($3,946,100), the State Safety Fund ($18,000), the Gas & Tax & Road Fund ($97,500), the Sewer Fund ($801,838), the Refuse Fund ($1,642,000), the River & Agricultural Water Fund ($524,500), the Domestic Water Fund ($38,500) and the Self-Insurance Fund ($67,563). 71 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 9 - ADVANCES FROM GRANTORS AND THIRD PARTIES
The government-wide Statement of Net Position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of year-end but not yet earned because under both the accrual and modified accrual basis of accounting revenue may be recognized only when earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for advances from grantors and third parties.

The following table summarizes Advances from Grantors and third parties for the City at June 30, 2022:

Balance at
June 30, 2022
Governmental Activities:

General Fund
Dog License $ 69,019
Business License 1,837,171
COVID Relief 37,679,079
General Fund Total 39,585,269
Redevelopment Successor Agency - Housing 22,215,154
Non-Major Funds:

State TDA - Grants Advanced 232,278
Total Governmental Activities $ 62,032,701
Business-Type Activities:

Refuse Collection $ 123,639
Total Business-Type Activities $ 123,639
NOTE 10 - LEASES
A lease is defined as a contractual agreement that conveys control of the right to use another entity’s nonfinancial asset, for a minimum contractual period of greater than one year, in an exchange-like transaction.

A. Leases of Tangible Items
In fiscal year 2022, the City adopted Statement No. 87, Leases, i ssued by the Governmental Accounting Standards Board (GASB). This statement establishes a single model for lease accounting based on the principle that leases are financing of the right to use an underlying asset. In accordance with the statement, parties to a lease agreement, the lessee and lessor, are required to recognize a lease liability and an intangible right-to-use lease asset, and a lease receivable and deferred inflow of resources, respectively.

City as Lessor
The City is a lessor of land and building nonfinancial assets. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources in initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. 72 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES (continued)
The following are key estimates and judgments how the City determines the discount rate on the expected lease receipts to present value, lease term, and lease receipts:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

As lessor, the City recognized twelve lease agreements subject to GASB Statement No. 87, Leases, at the beginning of the fiscal year. The lease terms range from 48 to 994 months for the right to use land, land improvements, buildings, and infrastructure. Most of these leases include periodic adjustments to the lease amounts at determined intervals. The fixed lease payment ranges from $1 to $195,696 per year, with the incremental borrowing rate of 1.5%. For the year ended June 30, 2022 the City received an immaterial amount of variable and other payments from these lease arrangements.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Changes in lease receivable for the year ended June 20, 2022 are as follows:

Restated (1)
Balance at
June 30, 2021 Additions
Principal
Retirement
Balance at
June 30, 2022
Governmental Activities
Lease Receivable $ 489,200 $ - $ 39,803 $ 449,397
Defered inflow of resources $ 489,200 $ - $ 54,506 $ 434,694 Balance at
June 30, 2021 Additions
Principal
Retirement
Balance at
June 30, 2022
Business-Type Activities
Lease Receivable $ 5,129,064 $ - $ 504,829 $ 4,624,235
Deffered inflow of resources $ 5,129,064 $ - $ 565,218 $ 4,563,846 (1) The beginning balance was restated to add the lease receivable due to the implementation of GASB Statement No. 87, Leases.

City as a Lessee
The City is a lessee of nonfinancial assets such as land, buildings, and equipment. The City recognizes a lease liability and intangible right-to-use lease assets in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life, which is the shorter of the leased asset’s useful life or the lease term.

The following are key estimates and judgments on how the City determines its discount rate on the expected lease payments to 73 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES (continued)
present value, lease term, and lease payments:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payment and purchase option price that the City is reasonably certain to exercise.

As lessee, the City recognized six lease agreements subject to GASB Statement No. 87, Leases, at the beginning of the fiscal year. During the fiscal year, the City entered into one lease agreement. The lease terms range from 36-204 months for the right to use buildings and equipment. Most of these leases include periodic adjustments to the lease amounts at determined intervals.

The fixed lease payment ranges from $680 to $695,722 per year with the incremental borrowing rate ranging from 3% to 5%.

For the year ended June 30, 2022, the City paid an immaterial amount of variable and other payments from these lease arrangements.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Changes in lease asset and lease liability for the year ended June 30, 2022 are as follows:

Restated (1)
Balance at
June 30, 2021 Additions
Principal
Retirement
Balance at
June 30, 2022
Governmental Activities:

Lease assets
Right-to-use land $ 67,010 $ - $ - $ 67,010
Right-to-use-buildings 34,978 1,474,971 - 1,509,949
Right-to-use equipment 34,947 - - 34,947
Total lease assets 136,935 1,474,971 - 1,611,906
Accumulated amortization - (232,194) - (232,194)
Total lease assets, net $ 136,935 $ 1,242,777 $ - $ 1,379,712 Lease liability $ 136,935 $ 1,474,971 $ (207,121) $ 1,404,785 (1) The beginning balance was restated to add the lease receivable due to the implementation of GASB Statement No. 87, Leases.

During the year ended June 30, 2022, the City recognized lease expenses and interest expenses as follows:

Business-Type
Activities
Governmental
Activities
Other lease (non-GASB 87) expenses $ 2,786,692 $ 232,194 Total lease expenses 2,786,692 232,194
Other lease (non-GASB 87) interest
expenses 668,624 15,540
Total lease interest expenses $ 668,624 $ 15,540
As of June 30, 2022, the City had a minimum principal and interest payment requirement for its lease activities with a remaining term in excess of one year, as follows:
74 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES (continued)
Governmental Activities
Year ending Lease Interest Total
2023 $ 479,018 $ 36,013 $ 515,031
2024 543,889 20,783 564,672
2025 340,692 4,819 345,511
2026 16,111 1,069 17,180
2027 9,958 590 10,548
2028-2032 12,006 1,295 13,301
2033-2037 3,111 289 3,400
Totals $ 1,404,785 $ 64,858 $ 1,469,643
B. Leases of Intangible Items
GASB Statement No. 87 for leases specifically excludes inclusion of intangible assets. As such, there is a separate tracking of those leases for items identified under GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets .

The City entered into a long-term lease agreement in September 2005 for the acquisition of water rights with the Kern County Water Agency (KCWA). The agreement entitles the City to receive 6,500 acre feet of water per year in exchange for an annual payment tied to KCWA's water revenue certificates of participation from 2006 and 2008, which were used for the expansion of the water treatment facility. On March 1, 2016, KCWA issued a refunding bond that refunded the previous debt that the City's lease payments were based upon. The City's lease payments coincide with the amortization schedule for the related KCWA dept wit the value of the water rights at $15,625,884. The total lease obligations for the term of the agreement are as follows:

Business-Type Activities
Year ending Lease Interest Total
2023 $ 712,201 $ 636,691 $ 1,348,892
2024 747,648 602,990 1,350,638
2025 782,515 566,907 1,349,422
2026 819,559 529,057 1,348,616
2027 860,240 488,979 1,349,219
2028-2032 4,961,800 1,786,433 6,748,233
2033-2037 5,684,148 813,402 6,497,550
2038-2042 1,057,773 42,311 1,100,084
Totals $ 15,625,884 $ 5,466,770 $ 21,092,654
75 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT
Long-term debt transactions for the fiscal year ending June 30, 2022 are summarized below:

Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
Payable at June 30, 2021:

Bonds $ - $ - $ 129,974,556 $129,974,556 $129,974,556
Certificates of Participation 3,000,000 - - - 3,000,000 Notes 3,995,063 3,000,000 - 3,000,000 6,995,063
Contracts/Loans - 352,970 - 352,970 352,970
Claims and Judgments Payable 64,552,000 - - - 64,552,000 Compensated Absences 18,736,022 2,402,985 - 2,402,985 21,139,007 Subtotal 90,283,085 5,755,955 129,974,556 135,730,511 226,013,596 New debt incurred:

Bonds - - - - -
Notes/Advances 870,288 - - - 870,288
Claims and Judgments Payable 6,769,000 - - - 6,769,000
Compensated Absences 12,645,570 1,249,064 - 1,249,064 13,894,634 Subtotal 20,284,858 1,249,064 - 1,249,064 21,533,922
Principal reductions:

Bonds - - 9,276,778 9,276,778 9,276,778
Certificates of Participation 3,000,000 - - - 3,000,000 Notes 1,317,681 280,303 - 280,303 1,597,984
Contracts/Loans - 26,708 - 26,708 26,708
Compensated Absences 11,268,586 1,311,386 - 1,311,386 12,579,972 Subtotal 15,586,267 1,618,397 9,276,778 10,895,175 26,481,442 Payable at June 30, 2022:

Bonds - - 120,697,778 120,697,778 120,697,778
Notes 3,547,669 2,719,697 - 2,719,697 6,267,366
Contracts/Loans - 326,262 - 326,262 326,262
Claims and Judgments Payable 71,321,000 - - - 71,321,000 Compensated Absences 20,113,006 2,340,663 - 2,340,663 22,453,669 Total Payables $ 94,981,675 $ 5,386,622 $ 120,697,778 $126,084,400 $221,066,075 76 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
Due Within One Year:

Bonds $ - $ - $ 9,601,778 $ 9,601,778 $ 9,601,778
Certificates of Participation - - - - -
Notes 1,260,445 284,507 - 284,507 1,544,952
Total Long-Term Debt 1,260,445 284,507 9,601,778 9,886,285 11,146,730 Contracts/Loans - 326,262 - 326,262 326,262
Claims and Judgments Payable 12,273,000 - - - 12,273,000 Compensated Absences 2,667,177 512,580 - 512,580 3,179,757 Total Due Within One Year $ 16,200,622 $ 1,123,349 $ 9,601,778 $ 10,725,127 $ 26,925,749 Due in More Than One Year:

Bonds $ - $ - $ 111,096,000 $111,096,000 $111,096,000
Notes 2,287,224 2,435,190 - 2,435,190 4,722,414
Total Long-Term Debt 2,287,224 2,435,190 111,096,000 113,531,190 115,818,414 Claims and Judgments Payable 59,048,000 - - - 59,048,000 Compensated Absences 17,445,834 1,828,082 - 1,828,082 19,273,916 Total Due in More Than One Year $ 78,781,058 $ 4,263,272 $ 111,096,000 $115,359,272 $194,140,330 The liability for pension-related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred.

The pension related debt and compensated absences for business-type activities will be paid by the respective proprietary funds.

Long-term debt payable at June 30, 2022, was comprised of the following individual issues:

Bonds
General obligation bonds serviced by business-type activities:
$10,525,000 Wastewater Revenue Bonds 2020 Series A bonds - The proceeds from the sale of the Series 2020A Bonds, along with certain available moneys of the Enterprise, were to be used to redeem and decrease a portion of the outstanding 2015A Refunded Bonds. The original series from 2007 was refunded with these 2015 bonds, a portion of which remains outstanding. The financing was used to fund the costs of certain capital improvements at the City's wastewater and sewer collection, treatment and disposal system (specifically Treatment Plant #3) (This issue is serviced by the Wastewater Treatment Fund). $ 10,525,000 $145,500,000 Wastewater Revenue Bonds 2015 Series A - The 2007 Series A bonds were refunded in 2015 with a partial call of the outstanding principal amount of $156,750,000 as well as payment of the issuance costs. The proceeds of the original Series 2007A refunded bonds were used to finance a portion of certain capital improvements at the City's wastewater and sewage collection treatment and disposal system; interest rate of 5.00%. (This issue is serviced by the Wastewater Treatment Fund.) $ 94,105,000 Unamortized Bond Premium on Wastewater Revenue Bonds 16,067,778 Total Bonds $120,697,778
77 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
Notes/Loans:

General obligation note serviced by Community Development Block Grant Fund (via the Municipal Debt Service Fund with Community Development Block Grant Entitlement): $4,100,000 Housing & Urban Development (HUD) Section 108 Loan 2003 - Due in annual principal installments of $137,000 to $320,000 commencing August 1, 2004 through August 2022; interest ranging from 1.75% to 4.76%. $ 320,000 General obligation note serviced by Community Development Block Grant Fund (via the Municipal Debt Service Fund with Community Development Block Grant Entitlement): $800,000 HUD Section 108 Loan 2003 - due in annual principal installments of $24,000 to $61,000 commencing August 1, 2005 through August 2023; interest ranging from 1.61% to 4.76%. 119,000
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):
$75,960 PG&E loan used for an energy efficient lighting upgrade at the City's Municipal Airport. The payment will be made in 89 monthly payments of $853.49 This loan contains no interest charges. 71,694
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $743,215 PG&E loan used for an energy efficient lighting upgrades to various City of Bakersfield Parks. The payment will be made in 100 monthly payments of $7,362.33. This loan contains no interest charges. 743,153
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$126,274 PG&E loan used for an energy efficient lighting upgrade at Rabobank Theater. The payments will be made starting March 12, 2018 in 54 monthly payments of $2,338. This loan contains no interest charges.
4,676
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$1,420,717 PG&E loan used for an energy efficient lighting upgrade throughout the City. The payments will be made in 80 monthly payments of $17,759. This loan contain no interest charges.
745,878
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$1,979,307 PG&E loan used for an energy efficient lighting upgrade throughout the City. The payments will be made in 80 monthly payments of $24,138. This loan contain no interest charges.
1,086,206
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$736,517 PG&E loan used for an energy efficient lighting upgrade throughout the City. The payments will be made in 46 monthly payments of $16,011. This loan contain no interest charges.
176,123
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $126,730 PG&E loan used for an energy efficient lighting upgrade for the Parking Garage.

The payment will be made in 117 monthly payments of $1,083. This loan contains no interest charges.
110,483
78 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $32,285 PG&E loan used for an energy efficient lighting upgrade for the City Hall North.

The payment will be made in 110 monthly payments of $294. This loan contains no interest charges.
28,470
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $140,477 PG&E loan used for an energy efficient lighting upgrade for the Amphitheater.

The payment will be made in 107 monthly payments of $1,313. This loan contains no interest charges.
122,101
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $28,073 PG&E loan used for an energy efficient lighting upgrade for Grissom Park. The payment will be made in 48 monthly payments of $585. This loan contains no interest charges.
19,885
Total general obligation notes/loans payable $ 3,547,669 79 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
Compensated Absences:

Governmental Activities $ 20,113,007
Business-Type Activities 2,340,663
Total Compensated Absences $ 22,453,670
A summary of the City's debt service requirements outstanding at June 30, 2022, is as follows:

Total
Government
Principal:

Governmental Activities $ 94,981,676
Business-Type Activities:

General Obligations 5,386,622
Revenue Obligations 120,697,781
Subtotal - Principal 221,066,079
Less: Claims and Judgments Payable included
above that bear no interest and have
no schedule of repayment terms 71,321,000
Less: Kern River Levee District Payable
included above that bears no interest and
has no schedule of repayment terms 326,263
Less: Unamortized premium for Wastewater
revenue bond 16,067,778
Less: Compensated Absences included above that bear
no interest and have no schedule of repayment terms 22,453,674 Total Principal with Scheduled
Repayment Terms 110,897,364
Interest on Obligations 29,350,132
Total Debt Service Requirements $140,247,496
80 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
The annual requirement to amortize the principal and interest on long-term debt at June 30, 2022 is as follows:

Government-Type Activities
Year ending Principal Interest
Bonds/COP Notes/Loans Total Bonds Notes/Loans Total
2023 $ - $ 1,260,445 $ 1,260,445 $ - $ 17,811 $ 17,811
2024 - 640,646 640,646 - 7,193 7,193
2025 - 639,477 639,477 - - -
2026 - 454,659 454,659 - - -
2027 - 130,865 130,865 - - -
2028-2032 - 421,577 421,577 - - -
Totals $ - $ 3,547,669 $ 3,547,669 $ - $ 25,004 $ 25,004 Business-Type Activities
Year ending Principal Interest
Bonds/COP Notes/Loans Total Bonds Notes/Loans Total
2023 $ 7,995,000 $ 284,507 $ 8,279,507 $ 5,031,625 $ 38,662 $ 5,070,287 2024 8,450,000 288,775 8,738,775 4,620,500 34,362 4,654,862 2025 8,920,000 293,106 9,213,106 4,186,250 29,998 4,216,248 2026 9,365,000 297,503 9,662,503 3,729,125 25,568 3,754,693 2027 9,885,000 301,965 10,186,965 3,247,875 21,072 3,268,947 2028-2032 53,545,000 1,253,841 54,798,841 8,160,375 37,966 8,198,341 2033-2037 6,470,000 - 6,470,000 161,750 - 161,750
Totals $ 104,630,000 $ 2,719,697 $107,349,697 $ 29,137,500 $ 187,628 $ 29,325,128 Total Reporting Entity
Year Ending Principal Interest
Bonds/COP Notes/Loans Total Bonds/COP Notes/Loans Total 2023 $ 7,995,000 $ 1,544,952 $ 9,539,952 $ 5,031,625 $ 56,473 $ 5,088,098 2024 8,450,000 929,421 9,379,421 4,620,500 41,555 4,662,055 2025 8,920,000 932,583 9,852,583 4,186,250 29,998 4,216,248 2026 9,365,000 752,162 10,117,162 3,729,125 25,568 3,754,693 2027 9,885,000 432,830 10,317,830 3,247,875 21,072 3,268,947 2028-2032 53,545,000 1,675,418 55,220,418 8,160,375 37,966 8,198,341 2033-2037 6,470,000 - 6,470,000 161,750 - 161,750
Totals $ 104,630,000 $ 6,267,366 $110,897,366 $ 29,137,500 $ 212,632 $ 29,350,132 81 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - PLEDGED REVENUES
The City has pledged net revenues generated by the Wastewater Enterprise Fund to repay a total of $151.5 m illion in wastewater revenue bonds series 2015A issued to finance a portion of the expansion and improvement of the City's wastewater and sewage collection and disposal system.

Each fiscal year, net revenues means all revenues of the enterprise fund received during the fiscal year less operation and maintenance costs for that fiscal year. T he pledge of net revenues does not constitute a lien upon any property of the City.

Proceeds of the bonds provided financing for expansion and upgrade of Wastewater Treatment Plant #3, and improvements to Wastewater Treatment Plant #2. T he bonds are payable through 2034 for 2015A bonds. T he covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, prescribe, revise, and collect rates, fees, and charges for the services and facilities of the system and revise the same whenever necessary, which will provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one hundred twenty five percent (125%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds; plus one hundred percent (100%) of all reserve and other payments required to be made pursuant to the ordinances authorizing the bonds.

NOTE 13 - DEFERRED INFLOWS OF RESOURCES
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized deferred inflows of resources in the governmental fund financial statements. These items are an acquisition of net fund balance by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. Under the modified accrual basis of accounting, it is not enough that revenue has been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report deferred revenues in connection with receivables for revenues not susceptible to accrual, as deferred inflows of resources.

Deferred inflows of resources balances (non-lease related) for the year ended June 30, 2022 were as follows:

Balance at
June 30, 2022
General Fund
California Water Receivable $ 120,316
Code Enforcement Receivable 23,228
State Agencies (SB90) 2,067,056
General Fund Total 2,210,600
CDBG - Deferred Loans 17,425,534
Capital Outlay Fund 46,606
Non-Major Funds
Neighborhood Stabilization 4,715,677
Total Governmental Funds $ 24,398,417
82 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 14 - FUND BALANCES
Fund balances for all major and non-major governmental funds as of June 30, 2022 are as follows (see Note 1 for description of the categories used):

General
Fund
Transient
Occupancy
Taxes Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Covid Relief
Fund
Capital
Outlay
Fund
Nonspendable
Prepaids/Deposits $ 98,463 $ - $ - $ - $ - $ 779,865
Subtotal 98,463 - - - - 779,865
Restricted
Development services grants - - - - - -
Development Services projects - - - - - -
Police services grants - - - - - -
Fire services grants - - - - - -
Covid relief - - - - 5,976,430 -
Public works grants - - - 14,644,011 - -
Subtotal - - - 14,644,011 5,976,430 -
Committed
Legal & Professional services 238,141 - - - - 110,476
City facility construction & refurbishment projects - - - - - 3,970,665 Police service contracts 544,578 - - - - 621,710
Fire service contracts - - - - - 2,946,963
Public works
improvement contracts - - - - - 9,220,747
Park improvement contracts 217,131 - - - - 150,379
Tourism and promotional contracts - 12,100 - - - -
Development Services contracts 736,859 - - - - 13,887,806 Cash basis reserve 48,586,675 - - - - -
Facility replacement reserve - - - - - 1,716,246
Economic/Community development projects 4,288,097 - - - - 4,691,896 Appropriation for next
year's budget 31,832,427 - - - - -
Subtotal 86,443,908 12,100 - - - 37,316,888
Assigned
Legal & Professional services 53,111 - - - - -
Police operations 419,235 - - - - -
Fire operations 232,018 - - - - -
Public works - General
Services department 115,918 - - - - -
Highway and road projects - - - - - 20,711,952
Rolling equipment - - - - - 64,551,015
Tourism and promotional contracts 200,899 6,499,337 - - - - Park development projects 114,613 - - - - -
Economic/Community development projects 58,209 - - - - - Other miscellaneous agreements 104,142 - - - - -
Petty Cash accounts 29,170 - - - - -
Compensated absences 2,367,135 - - - - -
Public Safety and Vital Services 30,725,799 - - - - -
Subtotal 34,420,249 6,499,337 - - - 85,262,967
Unassigned 7,478,680 - (320,921) - - -
Total $ 128,441,300 $ 6,511,437 $ (320,921)$ 14,644,011 $ 5,976,430 $ 123,359,720 83 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 14 - FUND BALANCES (continued)
Park
Improvement
Fund
Transportation
Development
Fund
Redevelopment
Successor
Agency -
Housing
Fund
Non-Major
Governmental
Funds Total
Nonspendable
Prepaids/Deposits $ - $ - $ - $ - $ 878,328
Subtotal - - - - 878,328
Restricted
Development services grants - - - 310,499 310,499
Development Services projects - - 2,611,787 - 2,611,787 Police services grants - - - 2,484,958 2,484,958
Fire services grants - - - 810,021 810,021
Covid relief - - - - 5,976,430
Public works grants - - - - 14,644,011
Subtotal - - 2,611,787 3,605,478 26,837,706
Committed
Legal & Professional services - - - - 348,617
City facility construction & refurbishment projects - - - - 3,970,665 Police service contracts - - - - 1,166,288
Fire service contracts - - - - 2,946,963
Public works
improvement contracts - 51,437,839 - - 60,658,586
Park improvement contracts 9,155,844 - - - 9,523,354
Tourism and promotional contracts - - - - 12,100
Development Services contracts - - - - 14,624,665
Cash basis reserve - - - - 48,586,675
Facility replacement reserve - - - - 1,716,246
Economic/Community development projects - - - - 8,979,993 Appropriation for next
year's budget - - - - 31,832,427
Subtotal 9,155,844 51,437,839 - - 184,366,579
Assigned
Legal & Professional services - - - - 53,111
Police operations - - - - 419,235
Fire operations - - - - 232,018
Public works - General
Services department - - - - 115,918
Highway and road projects - - - - 20,711,952
Rolling equipment - - - - 64,551,015
Tourism and promotional contracts - - - - 6,700,236
Park development projects - - - - 114,613
Economic/Community development projects - - - - 58,209
Other miscellaneous agreements - - - - 104,142
Petty Cash accounts - - - - 29,170
Compensated absences - - - - 2,367,135
Public Safety and Vital Services - - - - 30,725,799
Subtotal - - - - 126,182,553
Unassigned - - - - 7,157,759
Total $ 9,155,844 $ 51,437,839 $ 2,611,787 $ 3,605,478 $ 345,422,925 NOTE 15 - REIMBURSABLE DEVELOPER COSTS
Reimbursable developer costs of $1,572,018 at June 30, 2022 are included in customer deposits in the Domestic Water Fund which represent amounts due to developers for construction of water mainline extensions and certain other water facilities. For mainline extensions transferred to the City after June 30, 1982, the developers are to be reimbursed based on revenues generated from the water sales associated with these mainline extensions. The City is required to reimburse 2.5% of the cost of the extension on a yearly basis with the total amount to be reimbursed within 40 years. 84 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS
General
The City of Bakersfield provides pension benefits to eligible full-time employees in three separate plans: the Miscellaneous Plan, the Safety Fire Plan, and the Safety Police Plan, all of which are included in the Public Agency portion of the California Public Employees’ Retirement System (CalPERS).

Miscellaneous Plan
Plan Description
The City’s Miscellaneous Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of- living adjustments (COLA), and death benefits to plan members and beneficiaries. T he Miscellaneous 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. C alPERS issues a separate annual comprehensive financial report. Copies 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 Miscellaneous 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 Miscellaneous employee plan. Tier I is applicable to all employees hired before August 20, 2008 with a formula of 3% at age

60. 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 August 20, 2008 and before January 1, 2013 with a formula of 2.7% at age 55. 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 62, which is a result of the Public Employees' Pension Reform Act of 2013 (PEPRA). PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 52 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 Miscellaneous 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 8% of their salary while those employees under PEPRA (Tier III) will pay 6.25% of their salary. In addition, employees in Tier I and Tier II have 7.5% of their contribution picked-up by the City after five years of service.

Section 20814(c) of the California Public Employees’ Retirement Law (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. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution.

As of June 30, 2021 (the measurement date), there are 1,064 active employees and 1,031 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2022, the employee contribution rate was 7.460 percent of annual pay, and the employer’s minimum contribution rate was 35.040 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
85 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 Service
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-2016. 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.
86 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 2.0% 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)

MISCELLANEOUS PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2020 [a] $ 610,478,118 $ 435,360,737 $ 175,117,381 Changes Recognized for the
Measurement Period:
- Service Cost 10,008,798 - 10,008,798
- Interest on the Total
Pension Liability 43,128,230 - 43,128,230
- Changes of Benefit Terms - - -
- Differences between Expected
and Actual Experience 3,580,266 - 3,580,266
- Changes of Assumptions - - -
- Plan to Plan Movement - - -
- Contributions - Employer - 19,503,572 (19,503,572)
- Contributions - Employees - 4,617,600 (4,617,600)
- Net Investment Income - 98,463,929 (98,463,929)
- Benefit Payments Including
Refund of Employee Contributions (31,741,505) (31,741,505) - - Administrative Expenses - (434,899) 434,899
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2020-21 24,975,789 90,408,697 (65,432,908) Balance at June 30, 2021 [a] $ 635,453,907 $ 525,769,434 $ 109,684,473 [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. 87 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

MISCELLANEOUS PLAN
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15 %)
Discount Rate +
1%
(8.15%)
Plan Net Pension
Liability $ 192,280,767 $ 109,684,473 $ 41,199,067
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 3.6 years, which is obtained by dividing the total service years of 10,930 (the sum of remaining lifetimes of active employees) by 3,047 (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 $175,117,381. For the measurement period ending June 30, 2021 (the measurement date), the City incurred a pension expense/(income) of $2,542,046 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 $23,570,997 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), $0 for changes of assumptions, and $2,903,956 for the differences between expected and actual experience, and $0 for the net difference between projected and actual earning on pension plan investments. Deferred inflow s of resources related to pensions were $0 f or changes in assumptions and $ (674,039) f or differences between expected and actual experiences, and $(48,905,459) 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 $(11,390,373)
2023 $(10,587,465)
2024 $(11,163,293)
2025 $(13,534,411)
2026 $0
Remaining $0
88 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
Safety Fire Plan
Plan Description
The City’s Safety Fire 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 Fire 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 Fire 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 Fire 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 retirem ent 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 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 Fire 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 11.75% o f their salary. I n addition, employees in Tier I have 8% of 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. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution.

As of June 30, 2021 ( the measurement date), there are 175 a ctive employees and 224 i nactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2022, the employee contribution rate was 9.70 percent of annual pay, and the employer’s minimum contribution rate was 55.62 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
89 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.

Salary Increases 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% [a]
[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-2016. For more details on this table, please refer to the December 2017 experience study report.

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.
90 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.
91 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 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.

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
92 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.

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.
93 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.

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.
94 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 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.
95 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 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 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.
98 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 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.
100

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)
101

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

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.
103

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

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

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
106

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
108

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

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

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

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

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

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

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:

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:

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:

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:

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:

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

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
122

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
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
125

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

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

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

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
130
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

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
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

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
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

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
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

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
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

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
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

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
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

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
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
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

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

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

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

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

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

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

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

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

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

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

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
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

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
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

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

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
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
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

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
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

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
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

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

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

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
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

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
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

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

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

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
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

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
180

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
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

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

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

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

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

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
188

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
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

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
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

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
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

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
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

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
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
199

Finance, Economic Development and Jobs CommitteeMarch 25, 2024

Finance, Economic Development and Jobs Committee
March 25, 2024