Agenda, regular meeting, second session — Bakersfield City Council, January 22, 2025 (part 2 of 3)

Measurement Periods
Ended June 30:

Deferred Outflows/(Inflows)
of Resources
2023 $10,161,704
2024 $9,585,876
2025 $6,655,341
2026 $15,154,992
2027 $0
Remaining $0
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 which is based on 36 months at the highest rate of pay received addjusted annually based on changes to the CPI for all urban consumers.

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 89 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
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, 2022 ( 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, 2023, 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.

Actuarial Methods and Assumptions
For the measurement period ended June 30, 2022 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2021 and the June 30, 2022 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, 2019 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.

All other actuarial assumptions used in the June 30, 2022 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 6.90 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 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.90 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.

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 90 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
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.

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, 2021 [a] $ 322,060,271 $ 265,852,952 $ 56,207,319 Changes Recognized for the
Measurement Period:
- Service Cost 5,613,674 - 5,613,674
- Interest on the Total
Pension Liability 22,311,323 - 22,311,323
- Changes of Benefit Terms - - -
- Changes of Assumptions 10,750,631 - 10,750,631
- Differences between Expected
and Actual Experience (3,773,126) - (3,773,126)
- Plan to Plan Resource Movement - - -
- Contributions - Employer - 10,226,742 (10,226,742)
- Contributions - Employees - 2,026,395 (2,026,395)
- Net Investment Income - (20,199,779) 20,199,779
- Benefit Payments Including
Refund of Employee Contributions (16,984,220) (16,984,220) - - Administrative Expenses - (165,611) 165,611
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2021-22 17,918,282 (25,096,473) 43,014,755 Balance at June 30, 2022 [a] $ 339,978,553 $ 240,756,479 $ 99,222,074 [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 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

SAFETY FIRE PLAN
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate +
1%
(7.90%)
Plan Net Pension
Liability $ 145,838,434 $ 99,222,074 $ 61,038,459
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, 2022 measurement date is 5.8 years, which is obtained by dividing the total service years of 2,599 (the sum of remaining lifetimes of active employees) by 452 (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 $56,207,319. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense/(income) of $11,095,068 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, 2023, the City had deferred outflows of resources related to pensions of $12,155,016 for contributions made subsequent to the measurement date (which will be recognized as a reduction of the net pension liability as of June 30, 2024), $8,897,074 f or changes of assumptions, $1,264,350 f or the differences between expected and actual experiences and $12,178,769 f or the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions of $(3,828,468) for changes in assumptions $(144,300)and $(3,684,168) for differences between expected and actual experiences, and $0 f or the net difference between projected and actual earnings on pension plan investments.
92 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - 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
2023 $2,958,637
2024 $3,075,107
2025 $2,316,483
2026 $9,145,365
2027 $1,016,133
Remaining $0
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 which is based on 36 months at the highest rate of pay received addjusted annually based on changes to the CPI for all urban consumers.

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

Section 20814(c) of the California PERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
93 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
As of June 30, 2022 ( the measurement date), there are 426 a ctive employees and 491 i nactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2023, 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.

Actuarial Cost Method Entry Age Normal
Asset Valuation Method
Fair Value of Assets. For details, see
June 30, 2019 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-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.

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.
94 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (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.

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, 2021 [a] $ 577,154,905 $ 427,754,166 $ 149,400,739 Changes Recognized for the
Measurement Period:
- Service Cost 12,960,165 - 12,960,165
- Interest on the Total
Pension Liability 41,120,417 - 41,120,417
- Changes of Benefit Terms - - -
- Changes in Assumptions 25,729,951 - 25,729,951
- Differences between Expected
and Actual Experience 1,142,970 - 1,142,970
- Plan to Plan Resource Movement - - -
- Contributions - Employer - 22,990,827 (22,990,827)
- Contributions -Employees - 4,873,658 (4,873,658)
- Net Investment Income - (32,831,559) 32,831,559
- Benefit Payments Including
Refunds of Employee Contributions (29,119,679) (29,119,679) - - Administrative Expenses - (266,465) 266,465
- Other Misc Income/(Expense) - - -
Net Changes during 2021-22 51,833,824 (34,353,218) 86,187,042 Balance at June 30, 2022 [a] $ 628,988,729 $ 393,400,948 $ 235,587,781 [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. 95 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

SAFETY POLICE PLAN
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90 %)
Discount Rate +
1%
(7.90%)
Plan Net Pension
Liability $ 327,818,494 $ 235,587,781 $ 160,888,910
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, 2022 measurement date is 5.6 years, which is obtained by dividing the total service years of 5,533 (the sum of remaining lifetimes of active employees) by 944 (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 $149,400,739. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense/(income) of $30,972,288 for the plan.

As of June 30, 2023, the City had deferred outflows of resources related to pensions of $27,034,348, for contributions made subsequent to the measurement date (which will be recognized as a reduction of the net pension liability as of June 30, 2024), $21,135,317 for changes of assumptions $5,564,417, for differences between expected and actual experiences and $19,848,367 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $(657,488), for changes in assumptions $(201,942) for differences between expected and actual experiences of $(455,546) and $0 for the net difference between projected and actual earnings on pension plan investments. 96 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - 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
2023 $9,091,352
2024 $8,663,885
2025 $7,298,681
2026 $17,957,453
2027 $2,879,241
Remaining $0
CITYWIDE PENSION PLAN TOTALS Miscellaneous
Plan
Safety Fire
Plan
Safety Police
Plan
Citywide
Total
Net Pension Liability $ 202,394,160 $ 99,222,074 $ 235,587,781 $ 537,204,015 Deferred Outflows of Resources
Contributions Made Subsequent to Measurement
Date 25,466,772 12,155,016 27,034,348 64,656,136
Differences Between Expected and
Actual Experiences 1,591,230 1,264,350 5,564,417 8,419,997 Net Differences Between Projected and
Actual Earnings 24,021,114 12,178,769 19,848,367 56,048,250 Changes of Assumptions 17,075,397 8,897,074 21,135,317 47,107,788 Total Deferred Outflows of Resources $ 68,154,513 $ 34,495,209 $ 73,582,449 $ 176,232,171 Deferred Inflows of Resources
Differences Between Expected and
Actual Experience $ (1,129,828) $ (3,684,168) $ (455,546) $ (5,269,542) Changes of Assumptions - (144,300) (201,942) (346,242)
Total Deferred Inflows of Resources
(reclassed to Deferred Outflow of Resources) $ (1,129,828) $ (3,828,468) $ (657,488) $ (5,615,784) Pension Liability Expense $ 25,353,339 $ 11,095,068 $ 30,972,288 $ 67,420,695 97 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 18 - 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, 2023 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, 2023. 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, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021.

Actuarial assumptions. The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2022. T he actuarial assumptions used in the June 30, 2022 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 Entry Age Normal
Asset Valuation Method Market Value
Measurement Date June 30, 2022
Discount Rate 4.75%
Inflation Rate 2.30%
Payroll Growth 2.8%
Salary Increases
Ranges from 18.29% 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 22.47% 6.91%
Developed International Equity 2.78 7.21
Emerging Markets Equity 1.80 8.71
Core Fixed Income 68.48 1.61
Real Estate 1.53 3.61
Short-Term Money Market 2.94 0.71
Total 100%
(1) Long-term nominal rate of return less investment advisor's inflation assumption of 2.40%.

Discount rate. The discount rate used to measure the total OPEB liability was 4.75% as of June 30, 2022 and June 30, 2021.

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 beneficiaries are included. Projected City contributions that are intended to fund the service costs of future plan members and their 99 CITY OF BAKERSFIELD
Notes to the Financial Statements
OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
Net OPEB Liability (continued)
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 m ake 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, 2022 and June 30, 2021.

Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(a) (b) (a) - (b)
Beginning balances $ 107,846,786 $ 92,259,963 $ 15,586,823 Changes for the year:

Service cost 1,093,753 - 1,093,753
Interest 5,065,754 - 5,065,754
Differences between expected and actual experience 251,076 - 251,076 Changes of assumptions and methods (3,211,518) - (3,211,518) Employer contributions - 6,207,752 (6,207,752)
Net investment income - (10,063,094) 10,063,094
Benefit payments (4,640,002) (4,640,002) -
Administrative expense - (241,565) 241,565
Net changes (1,440,937) (8,736,909) 7,295,972
Ending balance $ 106,405,849 $ 83,523,054 $ 22,882,795
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, 2022, 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, 2022 $ 40,122,752 $ 22,882,795 $ 9,124,988 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, 2022, 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, 2022 $ 8,903,487 $ 22,882,795 $ 40,338,238 *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, 2023, the City recognized OPEB expense of $9,691,033. At June 30, 2023, 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 $ 137,193 $ 3,192,006 $ 19,522 $ 454,205
Differences between
expected and actual
experience 6,170,183 - 877,983 -
Net difference between
projected and actual
earnings on OPEB
Plan investments 152,582 6,022,552 21,712 856,976
City contributions
subsequent to the
measurement date 4,062,001 - 577,998 -
Total $ 10,521,959 $ 9,214,558 $ 1,497,215 $ 1,311,181
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 $4,062,001 for Governmental Activities and $577,998 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
2024 $ (6,135,559) $ (873,054)
2025 (340,890) (48,507)
2026 1,187,135 168,923
2027 2,534,713 360,675
Thereafter - -
$ (2,754,601) $ (391,963)
101

CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 19 - SPECIAL ASSESSMENT DISTRICTS
In addition to the Long-Term Obligations discussed in Note 12, 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, 2023
Assessment District 03-1* (Brighton Place/Silver Creek II) $ 305,000 Assessment District 03-3* (Seven Oaks West III/Brighton Place) 705,000 Assessment District 04-1** (Countryside/The Homestead) 485,000 Assessment District 04-2** (BL/BV/ST@Allen Com) 745,000 Assessment District 04-3** (Solera/Rio Vista) 505,000
Assessment District 2020-1*** (City in the Hills) 2,423,224 Assessment District 05-3** (Liberty II/Village Green/Tesoro/Encanto) 1,690,000 Assessment District 06-1** (Etcheverry/Lin II/University Park) 1,560,000 Assessment District 07-2 (Sydney Harbour) 855,000
$ 9,273,224
*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 20 - 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 $78,229,000 at June 30, 2023 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
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
2022-2023 71,321,000 18,452,000 11,544,000 78,229,000
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, 2023, the City had $2,468,523 o n deposit with ACCEL out of a total of approximately $27,096,546.

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, 2023, 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 20 - RISK MANAGEMENT (continued)
A summary of the financial information for ACCEL at June 30, 2023 is as follows:

Total assets $ 76,472,263
Total liabilities 81,109,503
Total members' net position $ (4,637,240)
Total revenues $ 56,777,492
Total expenses 60,077,935
Net change in members' net position $ (3,300,443)
NOTE 21 - 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 22 - 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, 2023 consisted of the following:

Governmental Funds:

Major Funds:

General Fund $ 8,708,800
Transient Occupancy Taxes Fund 151,112
Community Development Block Grant Fund 3,530,162
Gas Tax & Road Fund 24,590,169
Covid Relief Fund 7,879,452
Capital Outlay Fund 27,451,169
Park Improvement Fund 21,435
Transportation Development Fund 5,109,173
Non-Major Funds:

State (TDA) Transportation Fund -
State Safety Fund 243,552
Proprietary Funds:

Major Funds:

Wastewater Treatment Fund 3,136,026
Refuse Collection Fund 113,338
River & Agriculture Water Fund 177,555
Domestic Water Fund 2,155,987
General Aviation Fund 23,706
Offstreet Parking Fund 24,931
Internal Service Funds:

Self-Insurance Fund 45,045
Equipment Management Fund 25,537,985
Fiduciary Funds:

Custodial Funds:

Improvement District Fund 32,774
$ 108,932,373
105

CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 23 - 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, 2023
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 1,930,104
City of Bakersfield - Coventry Apartments Housing Bond, Series 2007M 5,300,000 3,201,069
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 10,971,000 996,735
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 38,100,000 TOTAL $ 298,767,026
106

CITY OF BAKERSFIELD
Notes to the Financial Statements
107

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, 2022 to fiscal year ended June 30, 2023 totaled $-. 108

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, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 128,441,300 $ 128,441,300 $ 128,441,300 $ - Revenues:

Taxes 305,141,500 312,818,313 316,256,425 3,438,112
Licenses and permits 3,024,500 3,024,500 3,360,089 335,589 Intergovernmental 1,731,500 14,906,503 8,622,630 (6,283,873) Charges for services 26,565,825 27,133,690 34,875,728 7,742,038 Fines, forfeitures and assessments 730,000 730,000 1,148,647 418,647 Interest income (loss) 270,000 270,000 1,320,846 1,050,846 Contributions and donations 195,000 281,102 210,042 (71,060) Other 953,675 1,808,990 2,152,247 343,257
Transfers from other funds 1,250,000 11,264,480 11,264,480 - Amount available for appropriation $ 339,862,000 $ 372,237,578 $ 379,211,134 $ 6,973,556 Expenditures:

General government $ 22,740,178 $ 26,777,072 $ 20,269,972 $ 6,507,100 Public safety - Police 150,131,205 155,947,943 147,605,005 8,342,938 Public safety - Fire 55,027,770 55,517,723 54,998,122 519,601 Public works 34,034,512 35,193,677 32,370,676 2,823,001 Recreation and parks 31,272,190 31,713,582 30,077,625 1,635,957 Development services 14,301,000 16,173,665 13,747,976 2,425,689 Economic/Community development 12,849,017 30,873,990 6,800,463 24,073,527 Non-departmental 15,934,527 21,284,133 8,239,123 13,045,010 Transfers to other funds 35,716,601 41,245,304 41,245,304 - Total charges to appropriations 372,007,000 414,727,089 355,354,266 59,372,823 Amount of resources over (under)
charges to appropriations (32,145,000) (42,489,511) 23,856,868 66,346,379 Fund balance, June 30 $ 96,296,300 $ 85,951,789 $ 152,298,168 $ 66,346,379 109

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Transient Occupancy Taxes Fund For the Fiscal Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 6,511,437 $ 6,511,437 $ 6,511,437 $ - Revenues:

Taxes 10,000,000 10,000,000 11,135,080 1,135,080
Charges for services 8,183,500 8,183,500 11,237,857 3,054,357 Interest income (loss) 15,000 15,000 467,575 452,575
Other income 106,032 106,032 - (106,032)
Amount available for appropriation $ 18,304,532 $ 18,304,532 $ 22,840,512 $ 4,535,980 Expenditures:

General government $ 11,956,470 $ 14,575,742 $ 11,628,038 $ 2,947,704 Transfers to other funds 9,923,031 10,448,031 10,432,276 15,755 Total charges to appropriations 21,879,501 25,023,773 22,060,314 2,963,459 Amount of resources over (under)
charges to appropriations (3,574,969) (6,719,241) 780,198 7,499,439 Fund balance, June 30 $ 2,936,468 $ (207,804) $ 7,291,635 $ 7,499,439 Budgetary Comparison Schedule, Community Development Block Grant Fund For the Fiscal Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ (320,921) $ (320,921) $ (320,921) $ - Revenues:

Intergovernmental 6,592,662 21,192,081 12,746,295 (8,445,786) Interest income - - 11,469 11,469
Loan payments - - 54,797 54,797
Other income - - 55,127 55,127
Amount available for appropriation $ 6,592,662 $ 21,192,081 $ 12,867,688 $ (8,324,393) Expenditures:

Economic/Community development $ - $ 15,865,598 $ 9,449,710 $ 6,415,888 Capital outlay 2,550,000 6,296,121 2,799,478 3,496,643
Transfers to other funds 384,339 384,339 384,339 -
Total charges to appropriations 2,934,339 22,546,058 12,633,527 9,912,531 Amount of resources over (under)
charges to appropriations 3,658,323 1,353,977 234,161 1,588,138 Fund balance, June 30 $ 3,337,402 $ (1,674,898) $ (86,760) $ 1,588,138 110

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Gas Tax & Road Fund
For the Fiscal Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 13,757,206 $ 13,757,206 $ 13,757,206 $ - Revenues:

Intergovernmental 23,208,409 111,119,816 50,928,207 (60,191,609) Charges for services - 55,000 - (55,000)
Fines, forfeitures and assessments 55,000 55,000 35,624 (19,376) Interest income (loss) 35,000 35,000 244,353 209,353
Other income - - 61,613 61,613
Amount available for appropriation $ 23,298,409 $ 111,264,816 $ 51,269,797 $ (59,995,019) Expenditures:

Public works $ 4,084,705 $ 4,099,900 $ 4,010,809 $ 89,091 Capital outlay 18,416,000 119,348,407 47,400,102 71,948,305 Transfers to other funds 9,300 9,300 9,300 -
Total charges to appropriations (22,510,005) (123,457,607) (51,420,211) 72,037,396 Amount of resources over (under)
charges to appropriations 788,404 (12,192,791) (150,414) 12,042,377 Fund balance, June 30 $ 14,545,610 $ 1,564,415 $ 13,606,792 $ 12,042,377 Budgetary Comparison Schedule, COVID Relief Fund
For the Fiscal Year Ended June 30, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 5,976,430 $ 5,976,430 $ 5,976,430 $ - Revenues:

Intergovernmental - 5,300,366 31,239,767 25,939,401
Interest income 50,000 50,000 1,674,584 1,624,584
Amount available for appropriation $ 50,000 $ 5,350,366 $ 32,914,351 $ 27,563,985 Expenditures:

General Government $ - $ 1,000,000 $ 454,721 $ 545,279
Economic/Community development $ 157,500 $ 44,805,830 $ 11,723,462 $ 33,082,368 Non-departmental - 5,899,999 5,178,295 721,704
Capital Outlay 216,500 20,333,809 3,057,874 17,275,935
Transfers to other funds 157,500 12,500,000 12,500,000 - Total charges to appropriations (531,500) (84,539,638) (32,914,352) 51,625,286 Amount of resources over (under)
charges to appropriations (481,500) (79,189,272) (1) 79,189,271 Fund balance, June 30 $ 5,494,930 $ (73,212,842) $ 5,976,429 $ 79,189,271 111

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, 2023
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 2,257,234 $ 2,257,234 $ 2,611,787 $ 354,553 Revenues:

Interest income (loss) 8,500 8,500 51,769 43,269
Other income - - 142,111 142,111
Amount available for appropriation $ 8,500 $ 8,500 $ 193,880 $ 185,380 Expenditures:

Capital outlay $ - $ 210,715 $ - $ 210,715
Economic/Community development - 293,746 - 293,746
Total charges to appropriations - (504,461) - 504,461
Amount of resources over (under)
charges to appropriations 8,500 (495,961) 193,880 689,841 Fund balance, June 30 $ 2,265,734 $ 1,761,273 $ 2,805,667 $ 1,044,394 112

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, 2023 are below:

MISCELLANEOUS PLAN [a][e]
Fiscal Year End: 2022 2023 2022 2021 2020
Total Pension Liability
Service Costs $ 11,936,949 $ 10,008,798 $ 9,487,348 $ 9,761,680 Interest on Total Pension Liability 44,607,191 43,128,230 41,409,296 40,017,148 Changes in Assumptions 22,963,465 - - -
Difference Between Expected and Actual Experience (1,146,174) 3,580,266 (1,467,027) 1,681,960 Benefit Payments [b] (33,517,292) (31,741,505) (29,651,687) (27,756,407) Net Change in Total Pension Liability $ 44,844,139 $ 24,975,789 $ 19,777,930 $ 23,704,381 Total Pension Liability - Beginning 635,453,907 610,478,118 590,700,188 566,995,807 Total Pension Liability - Ending [1] $ 680,298,046 $ 635,453,907 $ 610,478,118 $ 590,700,188 Plan Fiduciary Net Position
Contributions - Employer $ 20,877,107 $ 19,503,572 $ 17,627,444 $ 15,201,992 Contributions - Employee 4,920,321 4,617,600 4,310,604 3,956,979 Net Investment Income (39,818,161) 98,463,929 20,997,830 26,318,678 Benefit Payments [b] (33,517,292) (31,741,505) (29,651,687) (27,756,407) Plan to Plan Resource Movement - - 1,336 -
Administrative Expense (327,523) (434,899) (595,862) (289,187) Other Misc Income/(Expense) - - - 939
Net Change in Plan Fiduciary Net Position $ (47,865,548) $ 90,408,697 $ 12,689,665 $ 17,432,994 Plan Fiduciary Net Position - Beginning $ 525,769,434 $ 435,360,737 $ 422,671,072 $ 405,238,078 Plan Fiduciary Net Position - Ending [2] 477,903,886 525,769,434 435,360,737 422,671,072 Plan Net Pension Liability - [1]-[2] $ 202,394,160 $ 109,684,473 $ 175,117,381 $ 168,029,116 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %70.25 %82.74 %71.31 %71.55 Covered Payroll [f] $ 65,051,495 $ 59,434,668 $ 55,579,074 $ 55,934,450 Plan Net Pension Liability as a Percentage
of Covered Payroll %311.13 %184.55 %315.08 %300.40
Schedules of Plan Contributions
Fiscal Year End 2023 2022 2021 2020
Actuarially Determined Contribution [c] $ 20,877,107 $ 19,503,572 $ 17,627,444 $ 15,201,992 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (20,877,107) $ (19,503,572) $ (17,627,444) $ (15,201,992) Covered Payroll [d] $ 65,051,495 $ 59,434,668 $ 55,579,074 $ 55,934,460 Contributions as a Percentage of Covered Employee Payroll %32.09 %32.82 %31.72 %27.18 [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. 113

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
MISCELLANEOUS PLAN [a][e]
Fiscal Year End: 2022 2019 2018 2017 2016 2015
Total Pension Liability
Service Costs $ 9,865,219 $ 10,121,201 $ 9,229,271 $ 9,371,317 $ 9,394,857 Interest on Total Pension Liability 38,377,061 37,355,571 36,457,017 34,880,653 33,174,032 Changes in Assumptions (3,069,067) 31,112,110 - (8,541,600) - Difference Between Expected and Actual Experience (4,948,406) (8,386,592) (2,271,125) (682,929) - Benefit Payments [b] (26,111,942) (23,977,515) (21,951,615) (20,655,868) (18,737,652) Net Change in Total Pension Liability $ 14,112,865 $ 46,224,775 $ 21,463,548 $ 14,371,573 $ 23,831,237 Total Pension Liability - Beginning 552,882,942 506,658,167 485,194,619 470,823,046 446,991,809 Total Pension Liability - Ending [1] $ 566,995,807 552,882,942 506,658,167 485,194,619 470,823,046 Plan Fiduciary Net Position
Contributions - Employer $ 13,222,781 $ 11,107,872 $ 10,734,470 $ 10,017,697 $ 9,220,181 Contributions - Employee 4,245,043 4,188,806 4,400,305 4,653,169 4,566,671 Net Investment Income 32,008,762 39,138,504 1,891,631 7,966,951 53,513,763 Benefit Payments [b] (26,111,942) (23,977,515) (21,951,615) (20,655,868) (18,737,652) Plan to Plan Resource Movement (939) - (40,308) - -
Administrative Expense (597,766) (522,173) (218,704) (403,815) - Other Misc Income/(Expense) (1,135,167) - - - -
Net Change in Plan Fiduciary Net Position $ 21,630,772 $ 29,935,494 $ (5,184,221) $ 1,578,134 $ 48,562,963 Plan Fiduciary Net Position - Beginning $ 383,607,306 $ 353,671,812 $ 358,856,033 $ 357,277,899 $ 308,714,936 Plan Fiduciary Net Position - Ending [2] 405,238,078 383,607,306 353,671,812 358,856,033 357,277,899 Plan Net Pension Liability - [1]-[2] $ 161,757,729 $ 169,275,636 $ 152,986,355 $ 126,338,586 $ 113,545,147 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %71.47 %69.38 %73.00 %73.00 %75.88 Covered Payroll [f] $ 55,301,410 $ 56,388,660 $ 56,837,487 $ 57,065,633 $ 53,054,308 Plan Net Pension Liability as a Percentage
of Covered Payroll %292.50 %300.19 %221.00 %221.00 %214.02 Schedules of Plan Contributions
Fiscal Year End 2019 2018 2017 2016 2015
Actuarially Determined Contribution [c] $ 13,222,781 $ 11,107,872 $ 10,734,470 $ 10,017,697 $ 9,220,181 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (13,222,781) $ (11,107,872) $ (10,734,470) $ (10,017,697) $ (9,220,181) Covered Payroll [d] $ 55,301,410 $ 56,388,660 $ 56,837,487 $ 57,065,623 $ 53,054,308 Contributions as a Percentage of Covered Employee Payroll %23.91 %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: 2022 2023 2022 2021 2020
Total Pension Liability
Service Costs $ 5,613,674 $ 5,209,767 $ 4,666,713 $ 4,554,882 Interest on Total Pension Liability 22,311,323 21,862,120 21,040,275 20,357,836 Changes in Assumptions 10,750,631 - - -
Difference Between Expected and Actual Experience (3,773,126) 1,665,276 287,661 (1,450,007) Benefit Payments [b] (16,984,220) (16,341,306) (15,957,610) (15,465,768) Net Change in Total Pension Liability $ 17,918,282 $ 12,395,857 $ 10,037,039 $ 7,996,943 Total Pension Liability - Beginning 322,060,271 309,664,414 299,627,375 291,630,432 Total Pension Liability - Ending [1] $ 339,978,553 $ 322,060,271 $ 309,664,414 $ 299,627,375 Plan Fiduciary Net Position
Contributions - Employer $ 10,226,742 $ 9,545,170 $ 8,572,787 $ 7,433,992 Contributions - Employee 2,026,395 1,928,537 1,720,912 1,590,164 Net Investment Income (20,199,779) 49,937,203 10,642,420 13,562,717 Benefit Payments [b] (16,984,220) (16,341,306) (15,957,610) (15,465,768) Plan to Plan Resource Movement - - (1,336) -
Administrative Expense (165,611) (220,770) (304,975) (149,404) Other Misc Income/(Expense) - - - 487
Net Change in Plan Fiduciary Net Position $ (25,096,473) $ 44,848,834 $ 4,672,198 $ 6,972,188 Plan Fiduciary Net Position - Beginning $ 265,852,952 $ 221,004,118 $ 216,331,920 $ 209,359,732 Plan Fiduciary Net Position - Ending [2] 240,756,479 265,852,952 221,004,118 216,331,920 Plan Net Pension Liability - [1]-[2] $ 99,222,074 $ 56,207,319 $ 88,660,296 $ 83,295,455 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %70.82 %82.55 %71.37 %72.20 Covered Payroll [f] $ 19,152,761 $ 19,592,955 $ 17,426,111 $ 16,904,368 Plan Net Pension Liability as a Percentage
of Covered Payroll %518.06 %286.88 %508.78 %492.75
Schedules of Plan Contributions
Fiscal Year End 2023 2022 2021 2020
Actuarially Determined Contribution [c] $ 10,226,742 $ 9,545,170 $ 8,572,787 $ 7,433,992 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (10,226,742) $ (9,545,170) $ (8,572,787) $ (7,433,992) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 19,152,761 $ 19,592,955 $ 17,426,111 $ 16,904,368 Contributions as a Percentage of Covered Payroll %53.40 %48.72 %49.20 %43.98 [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: 2022 2019 2018 2017 2016 2015
Total Pension Liability
Service Costs $ 4,690,651 $ 4,691,377 $ 3,982,592 $ 4,038,459 $ 4,022,753 Interest on Total Pension Liability 19,788,058 19,273,519 18,906,125 18,125,192 17,409,125 Changes in Assumptions (1,346,780) 16,102,827 - (4,419,326) - Difference Between Expected and Actual Experience (1,205,127) (3,292,736) 880,783 (357,892) - Benefit Payments [b] (14,518,038) (13,914,493) (13,350,272) (12,266,190) (11,440,930) Net Change in Total Pension Liability $ 7,408,764 $ 22,860,494 $ 10,419,228 $ 5,120,243 $ 9,990,948 Total Pension Liability - Beginning 284,221,668 261,361,174 250,941,946 245,821,703 235,830,755 Total Pension Liability - Ending [1] $ 291,630,432 $ 284,221,668 $ 261,361,174 $ 250,941,946 $ 245,821,703 Plan Fiduciary Net Position
Contributions - Employer $ 6,452,089 $ 5,766,115 $ 5,299,399 $ 4,717,136 $ 4,243,095 Contributions - Employee 1,612,168 1,585,475 1,575,291 1,496,855 1,485,484 Net Investment Income 16,662,233 20,512,738 920,604 4,369,856 29,300,590 Benefit Payments [b] (14,518,038) (13,914,493) (13,350,272) (12,266,190) (11,440,930) Plan to Plan Resource Movement (487) - - (13) -
Administrative Expense (311,742) (275,179) (117,046) (216,134) - Other Misc Income/(Expense) (592,003) - - - -
Net Change in Plan Fiduciary Net Position $ 9,304,220 $ 13,674,656 $ (5,672,024) $ (1,898,490) $ 23,588,239 Plan Fiduciary Net Position - Beginning $ 200,055,512 $ 186,380,856 $ 192,052,880 $ 193,951,370 $ 170,363,131 Plan Fiduciary Net Position - Ending [2] 209,359,732 200,055,512 186,380,856 192,052,880 193,951,370 Plan Net Pension Liability - [1]-[2] $ 82,270,700 $ 84,166,156 $ 74,980,318 $ 58,889,066 $ 51,870,333 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %71.79 %70.39 %71.31 %76.53 %78.90 Covered Payroll [f] $ 17,260,904 $ 17,071,347 $ 16,365,695 $ 16,338,791 $ 15,554,085 Plan Net Pension Liability as a Percentage
of Covered Payroll %476.63 %493.03 %458.16 %360.42 %333.48 Schedules of Plan Contributions
Fiscal Year End 2019 2018 2017 2016 2015
Actuarially Determined Contribution [c] $ 6,452,089 $ 5,766,115 $ 5,299,399 $ 4,717,136 $ 4,243,095 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (6,452,089) $ (5,766,115) $ (5,299,399) $ (4,717,136) $ (4,243,095) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 17,260,904 $ 17,071,347 $ 16,365,695 $ 16,338,791 $ 15,554,085 Contributions as a Percentage of Covered Payroll %37.38 %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: 2022 2023 2022 2021 2020
Total Pension Liability
Service Costs $ 12,960,162 $ 11,343,912 $ 10,543,138 $ 10,370,024 Interest on Total Pension Liability 41,120,417 39,064,145 37,082,164 35,663,211 Changes in Assumptions 25,729,951 - - -
Difference Between Expected and Actual Experience 1,142,970 6,572,677 (1,024,983) 1,031,548 Benefit Payments [b] (29,119,679) (27,865,756) (25,890,920) (24,607,704) Net Change in Total Pension Liability $ 51,833,821 $ 29,114,978 $ 20,709,399 $ 22,457,079 Total Pension Liability - Beginning 577,154,905 548,039,927 527,330,528 504,873,449 Total Pension Liability - Ending [1] $ 628,988,726 $ 577,154,905 $ 548,039,927 $ 527,330,528 Plan Fiduciary Net Position
Contributions - Employer $ 22,990,827 $ 21,113,667 $ 19,171,916 $ 17,184,398 Contributions - Employee 4,873,658 4,277,875 3,896,766 3,604,241 Net Investment Income (32,831,559) 80,187,665 16,918,079 20,791,987 Benefit Payments [b] (29,119,679) (27,865,756) (25,890,920) (24,607,704) Plan to Plan Resource Movement - - - -
Administrative Expense (266,465) (350,019) (474,763) (228,376) Other Misc Income/(Expense) - - - 740
Net Change in Plan Fiduciary Net Position $ (34,353,218) $ 77,363,432 $ 13,621,078 $ 16,745,286 Plan Fiduciary Net Position - Beginning $ 427,754,166 $ 350,390,729 $ 336,769,651 $ 320,024,365 Plan Fiduciary Net Position - Ending [2] 393,400,948 427,754,161 350,390,729 336,769,651 Plan Net Pension Liability - [1]-[2] $ 235,587,778 $ 149,400,744 $ 197,649,198 $ 190,560,877 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %62.54 %74.11 %63.94 %63.86 Covered Payroll [f] $ 40,174,093 $ 39,374,913 $ 36,318,078 $ 35,362,400 Plan Net Pension Liability as a Percentage
of Covered Payroll %586.42 %379.43 %544.22 %538.88
Schedules of Plan Contributions
Fiscal Year End 2023 2022 2021 2020
Actuarially Determined Contribution [c] $ 22,990,827 $ 21,113,667 $ 19,171,916 $ 17,184,398 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (22,990,827) $ (21,113,667) $ (19,171,916) $ (17,184,398) Covered Payroll [d] $ 40,174,093 $ 39,374,913 $ 36,318,078 $ 35,362,400 Contributions as a Percentage of Covered Payroll %57.23 %53.62 %52.79 %48.60 [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: 2022 2019 2018 2017 2016 2015
Total Pension Liability
Service Costs $ 10,220,547 $ 10,633,847 $ 9,484,234 $ 8,534,322 $ 8,823,744 Interest on Total Pension Liability 34,128,107 32,733,299 31,506,218 29,736,286 28,279,962 Changes in Assumptions (2,726,217) 29,167,825 - (7,760,962) - Difference Between Expected and Actual Experience 1,792,996 (3,619,242) 4,042,528 872,107 - Benefit Payments [b] (23,362,241) (22,076,716) (20,226,151) (19,077,307) (17,776,028) Net Change in Total Pension Liability $ 20,053,192 $ 46,839,013 $ 24,806,829 $ 12,304,446 $ 19,327,678 Total Pension Liability - Beginning 484,820,257 437,981,244 413,174,415 400,869,969 381,542,291 Total Pension Liability - Ending [1] $ 504,873,449 484,820,257 437,981,244 413,174,415 400,869,969 Plan Fiduciary Net Position
Contributions - Employer $ 15,159,139 $ 14,646,334 $ 13,792,487 $ 12,287,267 $ 10,750,572 Contributions - Employee 3,650,956 3,426,099 3,794,305 3,238,371 2,920,326 Net Investment Income 25,183,248 30,690,942 1,419,472 6,082,288 41,170,702 Benefit Payments [b] (23,362,241) (22,076,716) (20,226,151) (19,077,307) (17,776,028) Plan to Plan Resource Movement (740) - 40,308 - -
Administrative Expense (468,655) (405,238) (168,097) (313,848) - Other Misc Income/(Expense) (889,985) - - - -
Net Change in Plan Fiduciary Net Position $ 19,271,722 $ 26,281,421 $ (1,347,676) $ 2,216,771 $ 37,065,572 Plan Fiduciary Net Position - Beginning $ 300,752,643 $ 274,471,222 $ 275,818,898 $ 273,602,127 $ 236,536,555 Plan Fiduciary Net Position - Ending [2] 320,024,365 300,752,643 274,471,222 275,818,898 273,602,127 Plan Net Pension Liability - [1]-[2] $ 184,849,084 $ 184,067,614 $ 163,510,022 $ 137,355,517 $ 127,267,842 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %63.39 %62.03 %62.67 %66.76 %68.25 Covered Payroll [f] $ 34,555,725 $ 35,225,410 $ 35,046,314 $ 30,842,116 $ 30,496,017 Plan Net Pension Liability as a Percentage
of Covered Payroll %534.93 %522.54 %466.55 %445.35 %417.33 Schedules of Plan Contributions
Fiscal Year End 2019 2018 2017 2016 2015
Actuarially Determined Contribution [c] $ 15,159,139 $ 14,646,334 $ 13,792,487 $ 12,287,267 $ 10,750,572 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (15,159,139) $ (14,646,334) $ (13,792,487) $ (12,287,267) $ (10,750,572) Covered Payroll [d] $ 34,555,725 $ 35,225,410 $ 35,046,314 $ 30,496,107 $ 30,496,107 Contributions as a Percentage of Covered Payroll %43.87 %41.58 %39.36 %40.29 %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] 2023 2022 2021 2020 2019 2018
Service Cost [b] $ 1,093,750 $ 1,303,741 $ 1,570,476 $ 1,861,902 $ 1,975,894 $ 2,149,807 Interest 5,065,754 5,765,058 6,452,159 7,113,376 6,986,837 7,329,180 Difference between expected and actual
experience 251,076 (10,056,063) (11,723,133) (20,451,948) (762,025) (6,042,345) Changes of assumptions and methods (3,211,518) (1,005,648) (5,621,334) 3,844,143 - (5,330,662) Benefit payments (4,640,002) (4,263,425) (4,046,134) (6,604,007) (4,507,862) (5,050,000) Net Change in Total OPEB Liability (1,440,940) (8,256,337) (13,367,966) (14,236,534) 3,692,844 (6,944,020) Total OPEB Liability - Beginning 107,846,789 116,103,126 129,471,092 143,707,626 140,014,782 146,958,802 Total OPEB Liability - Ending (a) $ 106,405,849 $ 107,846,789 $ 116,103,126 $ 129,471,092 $ 143,707,626 $ 140,014,782 Plan Fiduciary Net Position
Contributions - employer $ 6,207,752 $ 6,852,674 $ 6,826,986 $ 7,940,057 $ 7,527,447 $ 5,050,000 Net investment income (10,063,094) 10,311,017 4,544,160 4,882,723 2,017,934 3,011,528 Benefit payments (4,640,002) (4,263,425) (4,046,134) (6,604,007) (4,507,862) (5,050,000) Administrative expense (241,565) (231,118) (211,914) (196,306) (188,705) (180,556) Net Change in Plan Fiduciary Net
Position (8,736,909) 12,669,148 7,113,098 6,022,467 4,848,814 2,830,972 Plan Fiduciary Net Position - Beginning 92,259,963 79,590,815 72,477,717 66,455,250 61,606,436 58,775,464 Plan Fiduciary Net Position - Ending (b) 83,523,054 92,259,963 79,590,815 72,477,717 66,455,250 61,606,436 Plan's Net OPEB Liability - Ending (a)-
(b) $ 22,882,795 $ 15,586,826 $ 36,512,311 $ 56,993,375 $ 77,252,376 $ 78,408,346 Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability %78.49 %85.55 %68.55 %55.98 %46.24 %44.00 Covered payroll 35,014,171 39,698,602 39,698,602 39,698,602 46,166,357 44,930,761 Plan Net OPEB Liability as Percentage
of Covered Payroll %65.35 %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.. 119

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 2014 6,539,299 6,950,125 (410,826) 53,368,986 13.02%
2015 6,539,299 8,038,622 (1,499,323) 50,985,920 15.77%
2016 7,530,031 5,645,839 1,884,192 44,930,761 12.57%
2017 7,530,031 5,050,000 2,480,031 44,930,791 11.24%
2018 6,973,711 7,527,447 (553,736) 46,166,357 16.31%
2019 6,973,711 7,940,057 (966,346) 39,698,602 20.00%
2020 4,636,647 6,826,986 (2,190,339) 39,698,602 17.20%
2021 4,636,647 6,852,674 (2,216,027) 39,698,602 17.26%
2022 2,661,016 6,207,752 (3,546,736) 35,014,171 17.73%
2023 2,661,016 2,815,008 (153,992) 35,014,171 8.04%
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
15 years (declining) for outstanding balances as of June 30, 2022 unfunded OPEB liability
Asset vaulation method Market value
Actuarial assumptions June 30, 2019 valuation
Discount rate 4.75%
Inflation rate N/A
Ranges from 13.02% to 3.44% based on years of service, including inflation
Payroll Growth Same as those used in the June 30, 2021 GASB 74 actuarial Other assumptions
Same as those used in the June 30, 2021 GASB 74/75 actuarial valuation dated October 13, 2022.
120
121

CITY OF BAKERSFIELD
Supplementary Information
Contents Pages(s)
General Fund
Balance Sheet 125
Schedule of Revenues by Function - Budget and Actual 126 Schedule of Expenditures by Division - Budget and Actual 127 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Public Safety and Vital Services Funds 128 Special Revenue Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 130
Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual 136
Capital Projects Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 138
Non-Major Governmental Funds
Combining Balance Sheet 140
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
142
Internal Service Funds
Combining Statement of Net Position 145
Combining Statement of Activities and Changes in Net Position 146 Combining Statement of Cash Flows
Fiduciary Funds
Statement of Changes in Assets and Liabilities - Fiduciary Funds (Custodial)
149
Combining Statements of Fiduciary Net Position 149
Combining Statements of Changes in Fiduciary Net Position 153 Long-term Debt Recorded in Private Purpose Trust Fund 155 122
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. 123
124

CITY OF BAKERSFIELD
Balance Sheet
General Fund
June 30, 2023
General Fund
Assets:

Cash and investments $ 131,594,085
Accounts receivable, net 3,696,620
Interest receivable 1,087,051
Due from other governmental agencies 37,881,480
Due from other funds 1,534,200
Lease receivable 400,647
Prepaid items 60,731
Total assets $ 176,254,814
Liabilities, Deferred Inflows of Resources and Fund Balance:

Liabilities:

Accounts payable $ 12,042,911
Due to other governmental agencies 6,637,032
Advances from grantors and third parties 2,555,118
Total liabilities 21,235,061
Deferred Inflows of Resources:

Deferred Inflow Leases 380,188
Deferred revenue 2,341,397
Fund Balance:

Nonspendable 99,455
Committed
Cash basis reserve 51,137,226
Contractual obligations 7,574,872
Appropriations for new year budget 39,379,385
Assigned
Petty cash 29,170
Non-contractual encumbrances 1,133,928
Compensated absences 2,288,886
Public Safety Vital Services 25,548,473
Unassigned 25,106,773
Total fund balance 152,298,168
Total liabilities, deferred inflows of resources and fund balance $ 176,254,814 125

CITY OF BAKERSFIELD
Schedule of Revenues by Function - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2023
Budget Actual
Variance with
Final Budget
Revenues:

Taxes:

Property taxes $ 98,516,500 $ 103,659,840 $ 5,143,340
Sales and use taxes 203,501,813 199,751,271 (3,750,542) Property transfer tax 1,500,000 1,496,831 (3,169)
Utility franchise tax 5,500,000 6,903,320 1,403,320
Business license tax 3,800,000 4,445,163 645,163
Total taxes 312,818,313 316,256,425 3,438,112
Licenses and permits:

Building permits 1,800,000 2,140,485 340,485
Planning permits 83,500 110,675 27,175
Public works permits 690,000 711,333 21,333
Police permits 320,000 258,024 (61,976)
Other licenses and permits 131,000 139,572 8,572
Total licenses and permits 3,024,500 3,360,089 335,589
Intergovernmental:

Federal grants 1,353,110 1,155,108 (198,002)
State of California 3,058,066 2,356,872 (701,194)
Other grants 10,495,327 5,110,650 (5,384,677)
Total intergovernmental 14,906,503 8,622,630 (6,283,873) Charges for services:

Building 3,413,000 3,896,434 483,434
Planning 538,600 737,349 198,749
Public works 1,989,365 1,769,351 (220,014)
Police 1,052,650 1,264,262 211,612
Fire 7,770,000 8,058,963 288,963
Recreation and parks 637,075 824,026 186,951
Interfund charges 11,525,000 18,001,054 6,476,054
Other charges 208,000 324,289 116,289
Total charges for services 27,133,690 34,875,728 7,742,038 Fines, forfeitures, and assessments 730,000 1,148,647 418,647 Miscellaneous:

Interest income (loss) 270,000 3,360,669 3,090,669
Net increase (decrease) in the fair value of investments - (2,039,823) (2,039,823) Contributions and donations 281,102 210,042 (71,060)
Other income 1,808,990 2,152,247 343,257
Total miscellaneous 2,360,092 3,683,135 1,323,043
Total revenues $ 360,973,098 $ 367,946,654 $ 6,973,556
126

CITY OF BAKERSFIELD
Schedule of Expenditures by Division - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2023
Budget Actual
Variance with
Final Budget
General Government:

Mayor & City council $ 1,431,001 $ 1,195,649 $ 235,352
City manager 5,704,197 2,566,998 3,137,199
City clerk 979,901 855,786 124,115
Human resources 3,089,194 2,677,673 411,521
Information technology 9,023,578 7,452,068 1,571,510
Financial services 3,864,834 3,534,888 329,946
City attorney 2,684,367 1,986,910 697,457
Total general government 26,777,072 20,269,972 6,507,100 Public Safety:

Public safety - Police 155,947,943 147,605,005 8,342,938 Public safety - Fire 55,517,723 54,998,122 519,601
Total public safety 211,465,666 202,603,127 8,862,539
Public Works:

Administration 3,908,692 3,016,137 892,555
Engineering 8,768,013 8,276,678 491,335
General services 12,753,279 12,172,456 580,823
Streets and roads 9,763,693 8,905,405 858,288
Total public works 35,193,677 32,370,676 2,823,001
Recreation and Parks:

Administration 1,638,045 1,564,173 73,872
Recreation 4,160,538 3,980,834 179,704
Parks 25,914,999 24,532,618 1,382,381
Total recreation and parks 31,713,582 30,077,625 1,635,957 Development Services:

Planning 4,542,216 3,005,549 1,536,667
Building 11,631,449 10,742,427 889,022
Total development services 16,173,665 13,747,976 2,425,689 Economic/Community Development 30,873,990 6,800,463 24,073,527 Non-departmental 21,284,133 8,239,123 13,045,010
Contingency - - -
Total General Fund Expenditures $ 373,481,785 $ 314,108,962 $ 59,372,823 127

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, 2023
PSVS Funds
Revenues:

Taxes $ 103,075,348 $ - $ 103,075,348
Charges for services 13,878 - 13,878
Interest income (loss) 1,205,707 679,914 1,885,621
Other income 209,749 - 209,749
Total revenues 104,504,682 679,914 105,184,596
Expenditures
Current:

General government 3,821,354 - 3,821,354
Public safety - Police 32,125,281 - 32,125,281
Public safety - Fire 6,284,084 - 6,284,084
Public works 3,293,463 - 3,293,463
Recreation and parks 4,069,762 - 4,069,762
Development Services 4,729,346 - 4,729,346
Capital outlay - 22,595,855 22,595,855
Total expenditures 54,323,290 22,595,855 76,919,145
Excess (deficiency) of
revenues
over (under) expenditures 50,181,392 (21,915,941) 28,265,451 Other financing sources
(uses):

Transfers in - 33,184,462 33,184,462
Transfers out (46,418,775) - (46,418,775)
Total other financing
sources (uses) (46,418,775) 33,184,462 (13,234,313)
Net change in fund balance 3,762,617 11,268,521 15,031,138 Fund balances - July 1 58,084,195 51,221,541 109,305,736 Fund balances - June 30 $ 61,846,812 $ 62,490,062 $ 124,336,874 128
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 Mechanics Bank 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.
129

CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2023
Transient Occupancy Taxes
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ 10,000,000 $ 11,135,080 $ 1,135,080
Licenses and permits - - -
Intergovernmental - - -
Charges for services 8,183,500 11,237,857 3,054,357
Fines, forfeitures, and assessments - - -
Interest income (loss) 15,000 467,575 452,575
Loan payments - - -
Other income 106,032 - (106,032)
Total revenues 18,304,532 22,840,512 4,535,980
Expenditures
Current:

General government 14,575,742 11,628,038 2,947,704
Public safety - Police - - -
Public safety - Fire - - -
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 14,575,742 11,628,038 2,947,704
Excess (deficiency) of revenues over (under) expenditures 3,728,790 11,212,474 7,483,684 Other financing sources (uses):

Transfers out (10,448,031) (10,432,276) 15,755
Total other financing sources (uses) (10,448,031) (10,432,276) 15,755 Net change in fund balances (6,719,241) 780,198 7,499,439 Fund balances - beginning 6,511,437 6,511,437 -
Fund balances - ending $ (207,804) $ 7,291,635 $ 7,499,439 130
Community Development Block Grant Rental and Downpayment Assistance Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ - $ - $ -
- - - - - -
21,192,081 12,746,295 (8,445,786) - - -
- - - - - -
- - - - - -
- 11,469 11,469 10,000 865 (9,135)
- 54,797 54,797 - (1) (1)
- 55,127 55,127 - - -
21,192,081 12,867,688 (8,324,393) 10,000 864 (9,136)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
15,865,598 9,449,710 6,415,888 243,356 243,357 (1)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
4,594,085 2,688,652 1,905,433 - - -
804,173 14,595 789,578 - - -
897,863 96,230 801,633 - - -
22,161,719 12,249,187 9,912,532 243,356 243,357 (1)
(969,638) 618,501 1,588,139 (233,356) (242,493) (9,137) (384,339) (384,339) - - - -
(384,339) (384,339) - - - -
(1,353,977) 234,162 1,588,139 (233,356) (242,493) (9,137) (320,921) (320,921) - 310,498 310,498 -
$ (1,674,898) $ (86,759) $ 1,588,139 $ 77,142 $ 68,005 $ (9,137) 131

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, 2023
Covid Relief
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental 5,300,366 31,239,767 25,939,401
Charges for services - - -
Fines, forfeitures, and assessments - - -
Interest income (loss) 50,000 1,674,584 1,624,584
Loan payments - - -
Other income - - -
Total revenues 5,350,366 32,914,351 27,563,985
Expenditures
Current:

General government 1,000,000 454,721 545,279
Public safety - Police - - -
Public safety - Fire - - -
Public works - - -
Recreation and parks - - -
Economic/Community development 44,805,830 11,723,462 33,082,368 Non-departmental 5,899,999 5,178,295 721,704
Capital outlay:

Transportation:

Traffic control - - -
Streets / Freeways 11,000,000 2,941,200 8,058,800
Bridges - - -
Curbs, gutters and sidewalks - - -
Public facilities:

Parks and landscaping - - -
Other improvements 9,333,809 116,674 9,217,135
Total expenditures 72,039,638 20,414,352 (15,982,858)
Excess (deficiency) of revenues over (under) expenditures (66,689,272) 12,499,999 43,546,843 Other financing sources (uses):

Transfers out (12,500,000) (12,500,000) -
Total other financing sources (uses) (12,500,000) (12,500,000) - Net change in fund balances (79,189,272) (1) 43,546,843 Fund balances - beginning 5,976,430 5,976,430 (59,309,440) Fund balances - ending $ (73,212,842) $ 5,976,429 $ (15,762,597) 132
Gas Tax & Road Fund State (TDA) Transportation
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ - $ - $ -
- - - - - -
111,119,816 50,928,207 (60,191,609) 1,014,683 713,972 (300,711) - - - - - -
55,000 35,624 (19,376) - - -
35,000 244,353 209,353 500 4,238 3,738
- - - - - -
- 61,613 61,613 - - -
111,209,816 51,269,797 (59,940,019) 1,015,183 718,210 (296,973) - - - - - -
- - - - - -
- - - - - -
4,099,900 4,010,809 89,091 702,338 556,359 145,979
- - - 29,160 17,725 11,435
- - - - - -
- - - - - -
7,577,075 1,183,535 6,393,540 - - -
93,359,448 44,644,896 48,714,552 - - -
1,743,756 938,513 805,243 - - -
16,668,128 633,158 16,034,970 130,496 78,319 52,177
- - - - - -
- - - 381,673 65,807 315,866
123,448,307 51,410,911 72,037,396 1,243,667 718,210 525,457 (12,238,491) (141,114) 12,097,377 (228,484) - 228,484
(9,300) (9,300) - - - -
(9,300) (9,300) - - - -
(12,247,791) (150,414) 12,097,377 (228,484) - 228,484
13,757,206 13,757,206 - - - -
$ 1,509,415 $ 13,606,792 $ 12,097,377 $ (228,484) $ - $ 228,484 133

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, 2023
State Safety Fund
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ - $ - $ -
Licenses and permits 349,000 379,723 30,723
Intergovernmental 1,197,365 1,028,851 (168,514)
Charges for services 1,350,000 1,664,914 314,914
Fines, forfeitures, and assessments 1,400,000 1,331,870 (68,130) Interest income (loss) 12,500 116,291 103,791
Loan payments - - -
Other income - - -
Total revenues 4,308,865 4,521,649 212,784
Expenditures
Current:

General government - - -
Public safety - Police 2,607,321 1,719,245 888,076
Public safety - Fire 1,841,331 1,760,386 80,945
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 4,448,652 3,479,631 969,021
Excess (deficiency) of revenues over (under) expenditures (139,787) 1,042,018 1,181,805 Other financing sources (uses):

Transfers out (1,272,000) (1,272,000) -
Total other financing sources (uses) (1,272,000) (1,272,000) - Net change in fund balances (1,411,787) (229,982) 1,181,805 Fund balances - beginning 3,294,981 3,294,981 -
Fund balances - ending $ 1,883,194 $ 3,064,999 $ 1,181,805 134
Redevelopment Successor Agency - Housing Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ 10,000,000 $ 11,135,080 $ 1,135,080
- - - 349,000 379,723 30,723
- - - 139,824,311 96,657,092 (43,167,219)
- - - 9,533,500 12,902,771 3,369,271
- - - 1,455,000 1,367,494 (87,506)
8,500 51,769 43,269 131,500 2,571,144 2,439,644
- - - - 54,796 54,796
- 142,111 142,111 106,032 258,851 152,819
8,500 193,880 185,380 161,399,343 125,326,951 (36,072,392) - - - 15,575,742 12,082,759 2,402,425
- - - 2,607,321 1,719,245 888,076
- - - 1,841,331 1,760,386 80,945
- - - 4,802,238 4,567,168 235,070
- - - 29,160 17,725 11,435
293,746 - 293,746 61,208,530 21,416,529 39,792,001
- - - 5,899,999 5,178,295 721,704
- - - 7,577,075 1,183,535 6,393,540
- - - 104,359,448 47,586,096 40,655,752
- - - 1,743,756 938,513 805,243
- - - 21,392,709 3,400,129 17,992,580
- - - 804,173 14,595 789,578
210,715 - 210,715 10,824,060 278,711 (7,888,921)
504,461 - 504,461 238,665,542 100,143,686 102,879,428
(495,961) 193,880 689,841 (77,266,199) 25,183,265 66,807,036 - - - (24,613,670) (24,597,915) 15,755
- - - (24,613,670) (24,597,915) 15,755
(495,961) 193,880 689,841 (101,879,869) 585,350 66,822,791 2,257,234 2,257,234 - 31,786,865 31,786,865 -
$ 1,761,273 $ 2,451,114 $ 689,841 $ (70,093,004) $ 32,372,215 $ 102,465,219 135

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, 2023
General Obligation Debt
Budget Actual
Variance with
Final Budget
Revenues:

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

Debt service:

Principal retirement 1,215,530 1,199,446 16,084
Interest and fiscal charges 13,205 6,339 6,866
Total expenditures 1,228,735 1,205,785 22,950
Deficiency of revenues under expenditures (1,228,735) (1,205,785) 22,950 Other financing sources:

Transfers in 1,143,869 1,205,784 61,915
Total other financing sources 1,143,869 1,205,784 61,915 Net change in fund balance (84,866) (1) 84,865
Fund balance - beginning (3,335,825) - 3,335,825
Fund balance - ending $ (3,420,691) $ (1) $ 3,420,690
136
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.
137

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, 2023
Capital Outlay Park Improvement Fund
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
Revenues:

Taxes $ 5,850,000 $ 7,426,975 $ 1,576,975 $ - $ - $ -
Intergovernmental 7,992,360 180,088 (7,812,272) - - -
Charges for services 68,300 49,135 (19,165) - - -
Fines, forfeitures, and
assessments - 194,620 194,620 1,535,000 1,790,211 255,211 Interest income (loss) 148,000 1,178,653 1,030,653 25,000 176,123 151,123 Other income 737,135 16,725 (720,410) - - -
Total revenues 14,795,795 9,046,196 (5,749,599) 1,560,000 1,966,334 406,334 Expenditures:

Current:

General government - - - - - -
Public works - - - - - -
Non-departmental 1,854,686 41,497 1,813,189 - - -
Capital outlay:

Transportation:

Traffic control - - - - - -
Streets 6,041,710 3,565,356 2,476,354 - - -
Bridges 474,906 212,165 262,741 - - -
Streets / Freeways 48,282,359 12,825,151 35,457,208 - - - Public facilities:

Buildings 30,033,977 13,751,693 16,282,284 - - -
Parks and landscaping 7,567,888 2,961,344 4,606,544 271,842 9,895 261,947 Land acquisition 800,000 - 800,000 296,052 290,452 5,600 Other improvements 60,663,870 9,180,435 51,483,435 2,933,400 2,911,963 21,437 Equipment:

Computers 22,835,802 4,275,236 18,560,566 - - -
Non-automotive 688,282 584,946 103,336 - - -
Total expenditures 179,243,480 47,397,823 131,845,657 3,501,294 3,212,310 288,984 Excess (deficiency) of revenues
over (under) expenditures (164,447,685) (38,351,627) 126,096,058 (1,941,294) (1,245,976) 695,318 Other financing sources (uses):

Transfers in 44,175,462 44,175,462 - - - -
Transfers out - - - - - -
Total other financing
sources (uses) 44,175,462 44,175,462 - - - -
Net change in fund balances (120,272,223) 5,823,835 126,096,058 (1,941,294) (1,245,976) 695,318 Fund balances - beginning 123,359,720 123,359,720 - 9,155,844 9,155,844 - Fund balances - ending $ 3,087,497 $ 129,183,555 $ 126,096,058 $ 7,214,550 $ 7,909,868 $ 695,318 138
Transportation Development Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ 5,850,000 $ 7,426,975 $ 1,576,975
- - - 7,992,360 180,088 (7,812,272)
75,000 48,973 (26,027) 143,300 98,108 (45,192)
15,662,500 12,993,031 (2,669,469) 17,197,500 14,977,862 (2,219,638) 142,850 663,608 520,758 315,850 2,018,384 1,702,534
- 4,429 4,429 737,135 21,154 (715,981)
15,880,350 13,710,041 (2,170,309) 32,236,145 24,722,571 (7,513,574) 196,465 122,999 73,466 196,465 122,999 73,466
560,531 459,152 101,379 560,531 459,152 101,379
6,052 - 6,052 1,860,738 41,497 1,819,241
186,089 136,151 49,938 186,089 136,151 49,938
5,119,223 372,992 4,746,231 11,160,933 3,938,348 7,222,585 - - - 474,906 212,165 262,741
36,395,314 7,278,345 29,116,969 84,677,673 20,103,496 64,574,177 - - - 30,033,977 13,751,693 16,282,284
- - - 7,839,730 2,971,239 4,868,491
- - - 1,096,052 290,452 805,600
- - - 63,597,270 12,092,398 51,504,872
- - - 22,835,802 4,275,236 18,560,566
- - - 688,282 584,946 103,336
42,463,674 8,369,639 34,094,035 225,208,448 58,979,772 166,228,676 (26,583,324) 5,340,402 31,923,726 (192,972,303) (34,257,201) 158,715,102 4,100,000 1,000,000 (3,100,000) 48,275,462 45,175,462 (3,100,000) (3,100,000) - 3,100,000 (3,100,000) - 3,100,000
1,000,000 1,000,000 - 45,175,462 45,175,462 -
(25,583,324) 6,340,402 31,923,726 (147,796,841) 10,918,261 158,715,102 52,324,644 52,324,644 - 184,840,208 184,840,208 -
$ 26,741,320 $58,665,046 $ 31,923,726 $ 37,043,367 $195,758,469 $ 158,715,102 139

CITY OF BAKERSFIELD
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Special Revenue Funds
Rental and
Downpayment
Assistance
State (TDA)
Transportation
Assets:

Cash and investments $ 67,670 $ 25,991
Accounts receivable, net 4,269,939 -
Interest receivable 337 -
Due from other governmental agencies - 50
Total assets $ 4,337,946 $ 26,041
Liabilities, Deferred Inflows of Resources, and Fund Balances:

Liabilities:

Accounts payable $ - $ 8,775
Advances from grantors and third parties - 17,266
Total liabilities - 26,041
Deferred Inflows of Resources:

Deferred revenue 4,269,938 -
Fund Balances:

Restricted 68,008 -
Total liabilities, deferred inflows
of resources, and fund balances $ 4,337,946 $ 26,041
140
Special
Revenue Funds
Debt
Service Fund
State Safety
General
Obligation Debt
Total
Non-Major
Governmental
Funds
$ 3,094,672 $ - $ 3,188,333
111,661 - 4,381,600
35,108 - 35,445
- - 50
$ 3,241,441 $ - $ 7,605,428
$ 176,445 $ - $ 185,220
- - 17,266
176,445 - 202,486
- - 4,269,938
3,064,996 - 3,133,004
$ 3,241,441 $ - $ 7,605,428
141

CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2023
Special Revenue Funds Special Revenue Funds
Rental and
Downpayment
Assistance
State (TDA)
Transportation State Safety
Revenues:

Licenses and permits $ - $ - $ 379,723
Intergovernmental 1 713,972 1,028,851
Charges for services - - 1,664,914
Fines, forfeitures and assessments - - 1,331,870
Interest income (loss) 865 4,238 116,291
Other income - - -
Total revenues 866 718,210 4,521,649
Expenditures
Current:

Public safety - Police - - 1,719,245
Public safety - Fire - - 1,760,386
Public works - 556,359 -
Recreation and parks - 17,725 -
Economic community development 243,357 - -
Capital outlay - 144,126 -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 243,357 718,210 3,479,631
Excess (deficiency) of revenues
over (under) expenditures (242,491) - 1,042,018
Other financing sources (uses):

Transfers in - - -
Transfers out - - (1,272,000)
Total other financing sources (uses) - - (1,272,000)
Net change in fund balances (242,491) - (229,982)
Fund balances - beginning 310,498 - 3,294,978
Fund balances - ending $ 68,007 $ - $ 3,064,996
142
Debt
Service Fund
General Obligation
Debt
Total
Non-Major
Governmental
Funds
$ - $ 379,723
- 1,742,824
- 1,664,914
- 1,331,870
- 121,394
1 1
1 5,240,726
- 1,719,245
- 1,760,386
- 556,359
- 17,725
- 243,357
- 144,126
1,199,446 1,199,446
6,339 6,339
1,205,785 5,646,983
(1,205,784) (406,257)
1,205,784 1,205,784
- (1,272,000)
1,205,784 (66,216)
- (472,473)
- 3,605,476
$ - $ 3,133,003
143
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.
144

CITY OF BAKERSFIELD
Combining Statement of Net Position
All Internal Service Funds
June 30, 2023
Self-
Insurance
Equipment
Management Total
Assets:

Current assets:

Cash and investments $ 19,057,884 $ 60,170,434 $ 79,228,318 Accounts receivable, net 2,734 - 2,734
Interest receivable 111,115 446,322 557,437
Due from other governmental agencies 4,643 - 4,643
Prepayments and inventories 124,426 1,376,813 1,501,239 Total current assets 19,300,802 61,993,569 81,294,371
Noncurrent assets:

Capital assets:

Depreciable buildings, property, equipment and infrastructure, net - 60,119,415 60,119,415 Subscription Asset - net of amortization - 84,638 84,638 Total noncurrent assets - 60,204,053 60,204,053
Total assets 19,300,802 122,197,622 141,498,424
Deferred Outflows of Resources:

Deferred pensions 345,000 3,150,118 3,495,118
Deferred other post-employment benefits 33,673 385,962 419,635 Total deferred outflows of resources 378,673 3,536,080 3,914,753 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 350,959 2,005,957 2,356,916 Liability Claims payable 3,648,000 - 3,648,000
Workers' compensation claims 9,636,000 - 9,636,000
Compensated absences payable - 221,301 221,301
Subscription liability - 25,586 25,586
Total current liabilities 13,634,959 2,252,844 15,887,803 Noncurrent liabilities:

Liability Claims Payable 9,192,000 - 9,192,000
Workers' compensation claims 55,753,000 - 55,753,000
Compensated absences payable 88,994 371,915 460,909
Subscription liability - 53,545 53,545
Net pension liability 758,863 10,955,221 11,714,084
Net other post-employment benefits liability 64,111 734,814 798,925 Total noncurrent liabilities 65,856,968 12,115,495 77,972,463 Total liabilities 79,491,927 14,368,339 93,860,266
Deferred Inflows of Resources:

Deferred pensions (16,102) 212,613 196,511
Deferred other post-employment benefits 29,490 338,003 367,493 Total deferred inflows of resources 13,388 550,616 564,004 Net Position:

Net investment in capital assets - 60,119,415 60,119,415 Unrestricted (59,825,840) 50,695,332 (9,130,508)
Total net position (deficit) (59,825,840) 110,814,747 50,988,907 Total net position $ (59,825,840) $ 110,814,747 $ 50,988,907 145

CITY OF BAKERSFIELD
Combining Statement of Activities and Changes in Net Position All Internal Service Funds
For the Fiscal Year Ended June 30, 2023
Self-
Insurance
Equipment
Management Total
Operating revenues:

Charges for services $ 22,842,600 $ 42,589,995 $ 65,432,595 Cost recoveries 4,236,873 17,003 4,253,876
Miscellaneous 10,096 34,854 44,950
Total operating revenues 27,089,569 42,641,852 69,731,421 Operating expenses:

General and administrative 22,481,352 25,977,953 48,459,305 Workers' compensation payments 4,873,257 - 4,873,257
Claims paid 2,700,305 - 2,700,305
Depreciation and amortization - 10,782,965 10,782,965
Compensated absences 12,198 6,435 18,633
Total operating expenses 30,067,112 36,767,353 66,834,465 Operating income (loss) (2,977,543) 5,874,499 2,896,956 Nonoperating revenues (expenses):

Interest income (loss) 159,799 979,041 1,138,840
Gain/(loss) on sale of capital assets - 338,495 338,495 Income (loss) before transfers
and capital contributions (2,817,744) 7,192,035 4,374,291 Capital contributions - 1,193,146 1,193,146
Transfers in - 5,426,400 5,426,400
Change in net position (2,817,744) 13,811,581 10,993,837 Total Net Position (Deficit) -
Beginning of Year (57,008,096) 97,003,166 39,995,070
Total Net Position (Deficit) - End of Year $ (59,825,840) $ 110,814,747 $ 50,988,907 146

CITY OF BAKERSFIELD
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
Self-Insurance
Fund
Equipment
Management Total
Cash from operating activities:

Cash received from:

Customers $ 22,905,551 $ 42,718,580 $ 65,624,131
Prior year reimbursements and cost recoveries 4,236,873 17,003 4,253,876 Cash paid to:

Suppliers (24,701,420) (21,943,062) (46,644,482)
Employees 1,436,642 (5,393,927) (3,957,285)
Net cash provided (used) by operating activities 3,877,646 15,398,594 19,276,240 Cash from noncapital financing activities
Cash transfered from other funds - 5,426,401 5,426,401
Cash transfers to other funds - 1,193,146 1,193,146
Net cash provided (used) by noncapital financing activities - 6,619,547 6,619,547 Cash from capital and related financing activities:

Acquisition and construction of capital assets - (14,372,797) (14,372,797) SBITA payments - (5,507) (5,507)
Proceeds from sale of capital assets - 338,495 338,495
Net cash provided (used) by capital and related financing activities - (14,039,809) (14,039,809) Cash from investing activities:

Interest received 230,150 842,752 1,072,902
Net increase (decrease) in the fair value of investments (145,328) (229,157) (374,485) Net cash provided (used) by investing activities 84,822 613,595 698,417 Net increase (decrease) in cash and investments 3,962,468 8,591,927 12,554,395 Cash and investments - Beginning of year 15,095,416 51,578,507 66,673,923 Cash and investments - End of year $ 19,057,884 $ 60,170,434 $ 79,228,318 147

CITY OF BAKERSFIELD
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
Self-Insurance
Fund
Equipment
Management Total
Reconciliation of Operating income (Loss) to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) $ (2,977,543) $ 5,874,499 $ 2,896,956 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense - 10,782,965 10,782,965
(Increase) decrease in accounts receivable 52,855 100,551 153,406 (Increase) decrease in inventories - (19,465) (19,465)
(Increase) decrease in prepaid items (878) - (878)
Increase (decrease) in accounts payable (87,264) (907,364) (994,628) Other accrued liabilities 6,908,000 - 6,908,000
Increase (decrease) in compensated absences 12,198 6,435 18,633 Increase (decrease) in net pension liability 507,221 4,038,927 4,546,148 Increase (decrease) in deferred outflows/inflows of resources for pensions (508,472) (3,991,519) (4,499,991) Increase (decrease) in net other post-employment benefits liability 27,160 244,366 271,526 Increase (decrease) in deferred outflows/inflows of resources for OPEB (55,631) (730,801) (786,432) Net cash provided (used) by operating activities: $ 3,877,646 $ 15,398,594 $ 19,276,240 148

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
Special
Deposits
Improvement
Districts
Total Custodial
Funds
Assets:

Current assets:

Cash and investments $ 26,067,007 $ 9,635,319 $ 35,702,326 Accounts receivable, net 587 - 587
Interest receivable 8,155 48,434 56,589
Total current assets 26,075,749 9,683,753 35,759,502
Total assets 26,075,749 9,683,753 35,759,502
Liabilities:

Payables:

Deposits 26,075,747 6,770,990 32,846,737
Bonds - 2,717,591 2,717,591
Accrued bond interest - 195,172 195,172
Total liabilities 26,075,747 9,683,753 35,759,500
Net Assets:

Held in trust
Individuals, organizations, and other governments $ - $ - $ - 149

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2023
Redevelopment
Successor Agency -
Trust
Planning Habitat
Trust
Affordable
Housing Trust
Total
Private Purpose
Trust Funds
Assets:

Current assets:

Cash $ 3,083,547 $ 16,801,385 $ 9,419,210 $ 29,304,142
Interest receivable 13,605 146,566 65,267 225,438
Total current assets 3,097,152 16,947,951 9,484,477 29,529,580 Noncurrent assets:

Land held for resale 60,895 - - 60,895
Total noncurrent assets 60,895 - - 60,895
Total assets 3,158,047 16,947,951 9,484,477 29,590,475
Liabilities:

Payables:

Advances from grantors and third parties 2,725,323 - - 2,725,323 Bonds 1,730,000 - - 1,730,000
Notes 8,268,911 - - 8,268,911
Total liabilities 12,724,234 - - 12,724,234
Net Position:

Held in trust for:

Individuals, organizations, and other
governments (9,566,187) 16,947,951 9,484,477 16,866,241 Total Net Position $ (9,566,187)$ 16,947,951 $ 9,484,477 $ 16,866,241 150

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
June 30, 2023
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Assets:

Cash $ 2,993,560 $ 331,118 $ 3,324,678
Interest receivable - 2,912 2,912
Investments
Domestic equities 26,260,260 - 26,260,260
Fixed income 60,887,663 - 60,887,663
Total investments 87,147,923 - 87,147,923
Total assets 90,141,483 334,030 90,475,513
Net Position:

Held in trust for -
Other post-employment benefits 90,141,483 334,030 90,475,513 Total Net Position $ 90,141,483 $ 334,030 $ 90,475,513
151

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Fiscal Year Ended June 30, 2023
Special
Deposits
Improvement
Districts
Total Custodial
Funds
Additions:

Assessment District Contributions $ - $ 3,630,839 $ 3,630,839 Special Deposit Contribution 129,475,656 - 129,475,656
Other Contributions - 671,265 671,265
Other income - 286,508 286,508
Interest income (loss) 1 167,763 167,764
Total additions 129,475,657 4,756,375 134,232,032
Deductions:

Obligation retirement - 3,028,472 3,028,472
Non departmental - 1,251,596 1,251,596
Other Distributions 129,475,656 21,478 129,497,134
Bond - Interest - 454,830 454,830
Total deductions 129,475,656 4,756,376 (134,232,032)
Change in net position 1 1 -
Net position - beginning of year - - -
Net position - end of year $ 1 $ (1) $ -
152

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Fiscal Year Ended June 30, 2023
Redevelopment
Successor Agency -
Trust
Planning Habitat
Trust
Affordable
Housing Trust
Total
Private Purpose
Trust Funds
Additions:

Developer fees $ - $ 296,989 $ - $ 296,989
Successor agency property tax deposits 1,415,610 - - 1,415,610 Intergovernmental - - - -
Charges for services - - - -
Other Contributions - - 2,626,813 2,626,813
Other income 141 - - 141
Interest income (loss) - 549,281 185,637 734,918
Total additions 1,415,751 846,270 2,812,450 5,074,471
Deductions:

Purchase of uninhabited land - 847,660 - 847,660
Obligation retirement 481,914 - - 481,914
Total deductions 481,914 847,660 - 1,329,574
Change in net position 933,837 (1,390) 2,812,450 3,744,897 Net position - beginning of year (10,500,024) 16,949,341 6,672,027 13,121,344 Net position - end of year $ (9,566,187)$ 16,947,951 $ 9,484,477 $ 16,866,241 153

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, 2023
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Additions:

Contributions to pooled investments $ 1,334,756 $ - $ 1,334,756 Interest income 3,519,878 9,618 3,529,496
Total additions 4,854,634 9,618 4,864,252
Deductions:

Benefits 1,917,758 92,412 2,010,170
Administrative expenses 231,657 - 231,657
Total deductions 2,149,415 92,412 2,241,827
Change in net position 2,705,219 (82,794) 2,622,425
Beginning of year 87,436,264 416,824 87,853,088
End of year $ 90,141,483 $ 334,030 $ 90,475,513
154

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. $ 1,090,000 $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. 640,000
Total Bonds $ 1,730,000
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%. $ 82,000
$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%. 501,000 $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%. 1,428,000
$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%. 6,257,911 Total Loans/Contracts Payable $ 8,268,911
Total Redevelopment Successor Agency $ 9,998,911
155

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, 2023 is as follows:

Redevelopment Successor Agency (Private Purpose Trust Fund) Year ending Principal Interest
Bonds Loans/Contracts Total Bonds Loans/Contracts Total 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 260,000 698,260 958,260 52,594 153,892 206,486
2029-2033 580,000 2,069,761 2,649,761 43,706 539,972 583,678 2034-2038 - 2,412,260 2,412,260 - 192,147 192,147
Totals $ 1,730,000 $ 8,268,911 $ 9,998,911 $ 482,613 $ 1,832,069 $ 2,314,682 156
Statistical Section
City of Bakersfield
Statistical Section
For the fiscal year ended June 30, 2023
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. 158 - 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. 168 - 177 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. 178 - 184
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. 185 - 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. 191 - 192 157

CITY OF BAKERSFIELD
Net Position by Component (1)
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016(2) 2017(2)
Governmental Activities:

Net investment in capital assets $ 1,279,657,792 $ 1,285,115,859 $ 1,304,906,456 $ 1,305,414,611 Restricted for:

Capital improvements 21,015,837 22,112,200 21,988,624 20,626,443 Unrestricted 213,670,245 (70,066,811) (86,460,007) (108,783,761) Total governmental activities
net position: 1,514,343,874 1,237,161,248 1,240,435,073 1,217,257,293 % change from prior year 6.0% -22.4% 0.3% -1.9%
Business-Type Activities:

Net investment in capital assets 647,105,639 648,359,633 665,588,574 670,274,189 Restricted for:

Capital improvements 20,209,227 20,201,556 20,201,947 20,200,000 Unrestricted 109,292,512 78,904,795 79,243,784 85,239,027 Total business-type activities
net position 776,607,378 747,465,984 765,034,305 775,713,216 % change from prior year 0.9% -3.9% 2.3% 1.4%
Primary Government:

Net investment in capital assets 1,926,763,431 1,933,475,502 1,970,495,030 1,976,138,800 Restricted for:

Capital improvements 41,225,064 42,313,756 42,190,571 40,826,443 Unrestricted 322,962,757 8,837,984 (7,216,223) (23,544,734) Total primary government
net position $ 2,290,951,252 $ 1,984,627,242 $ 2,005,469,378 $ 1,993,420,509 Total primary government
% change from prior year 4.3% -15.4% 1.0% -0.6%
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. 158
Fiscal Year
2018(2) 2019(2) 2020(2) 2021(2)(3) 2022(2) 2023(2)
$ 1,301,334,674 $ 1,316,112,932 $ 1,347,391,281 $ 1,353,461,742 $ 1,369,954,461 $ 1,395,502,719 20,759,775 18,975,747 15,078,957 15,276,476 21,536,491 21,357,879 (200,714,582) (193,801,808) (190,673,618) (59,276,481) (39,763,272) 3,081,026 1,121,379,867 1,141,286,871 1,171,796,620 1,309,461,737 1,351,727,680 1,419,941,624 -8.5% 2% 3 12 3.2% 5.0%
700,725,335 720,818,075 735,284,165 746,197,186 754,164,100 756,449,727 20,200,000 20,200,000 20,200,000 20,200,000 20,200,000 20,200,000 107,755,323 107,638,278 105,004,414 113,278,598 106,968,986 120,952,107 828,680,658 848,656,353 860,488,579 879,675,784 881,333,086 897,601,834 6% 2 1 2.2% 0.2% 1.8%
2,002,060,009 2,036,931,007 2,082,675,446 2,099,658,928 2,124,118,561 2,151,952,446 40,959,775 39,175,747 35,278,957 35,476,476 41,736,491 41,557,879 (92,959,259) (86,163,530) (85,669,204) 54,002,117 67,205,714 124,033,133 $ 1,950,060,525 $ 1,989,943,224 $ 2,032,285,199 $ 2,189,137,521 $ 2,233,060,766 $ 2,317,543,458 -2.2% 2% 2 8 2.0% 3.8%
159

CITY OF BAKERSFIELD
Change in Net Position (1)
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017
Expenses
Governmental activities:

General government $ 10,274,285 $ 21,956,276 $ 24,203,337 $ 26,395,470 Public safety:

Police 80,192,752 82,573,675 87,314,992 95,723,028
Fire 36,086,851 35,577,067 37,257,146 41,364,912
Public works 104,347,771 158,958,537 176,573,017 171,911,928 Recreation & parks 34,641,180 22,743,488 24,993,400 26,888,569 Development services 9,940,984 9,895,523 10,018,548 12,159,620 Economic/Community development (2) - - - -
Interest on long-term debt 166,472 164,046 39,729 33,429 Total governmental activities expenses 275,650,295 331,868,612 360,400,169 374,476,956 Business-type activities:

Wastewater treatment 41,979,698 41,602,539 38,038,376 41,008,233 Refuse collection 45,336,786 42,860,924 44,067,358 46,300,746 River & agricultural water 5,051,433 4,751,158 4,395,517 4,304,663 Domestic water 25,613,917 25,455,862 25,756,437 27,066,771 General aviation 462,690 527,279 480,754 812,527
Offstreet parking 160,613 163,840 112,986 226,999
Total business-type activities expenses 118,605,137 115,361,602 112,851,428 119,719,939 Total primary government expenses 394,255,432 447,230,214 473,251,597 494,196,895 Program Revenues
Governmental activities:

Charges for services:

General government 5,019,511 3,051,375 6,178,924 4,609,597 Public safety:

Police 2,938,734 2,737,294 3,138,617 4,797,619
Fire 4,937,490 5,784,964 6,375,758 6,903,928
Public works 23,780,578 20,958,923 18,625,200 17,116,439 Recreation & parks 14,348,050 14,336,209 15,665,544 16,103,058 Development services 5,221,585 5,620,567 6,076,072 5,719,860 Operating grants and contributions 11,633,792 12,963,571 11,217,162 12,640,678 Capital grants and contributions 104,071,622 101,313,136 120,303,934 100,956,230 Total governmental activities
program revenues $ 171,951,362 $ 166,766,039 $ 187,581,211 $ 168,847,409 Notes:
(1) This schedule reports using the accrual basis of accounting. (2) Economic/Community Development became a part of Development Services. 160
Fiscal Year
2018 2019 2020 2021 2022 2023
$ 29,731,416 $ 31,112,425 $ 40,385,072 $ 59,796,329 $ 42,511,573 $ 36,776,455 105,006,154 106,340,979 120,286,345 122,380,189 129,728,794 157,182,433 44,560,720 46,537,182 49,284,742 50,309,878 45,764,559 58,352,144 145,529,290 126,435,754 170,924,424 145,038,811 150,281,233 109,899,852 22,613,830 20,685,570 26,172,685 25,111,166 26,118,994 39,781,689 8,533,656 8,221,265 13,409,023 10,230,315 6,956,455 14,366,698 - - - 8,793,206 50,040,874 31,828,294
25,060 17,358 7,779 (5,101) 17,809 (3,224)
356,000,126 339,350,533 420,470,070 421,654,793 451,420,291 448,184,341 42,103,648 43,491,976 41,863,203 41,038,194 41,498,952 44,261,402 47,971,215 52,077,032 56,297,122 50,804,453 58,507,299 65,668,875 4,198,037 4,469,652 5,110,204 5,098,760 7,096,442 7,322,078 29,205,225 26,859,329 30,900,781 35,476,633 38,097,963 39,547,695 671,124 480,368 633,219 548,758 429,865 488,137
233,746 290,799 288,532 309,221 341,910 329,928
124,382,995 127,669,156 135,093,061 133,276,019 145,972,431 157,618,115 480,383,121 467,019,689 555,563,131 554,930,812 597,392,722 605,802,456 5,618,886 5,476,706 4,474,539 16,695,951 8,343,684 10,265,564 2,989,023 3,719,138 3,152,452 3,045,346 4,098,823 3,769,689 7,242,490 7,615,334 8,116,341 8,503,888 8,988,190 9,825,370 17,159,857 16,970,725 17,969,450 22,364,612 18,860,054 15,584,199 16,481,750 17,354,482 14,768,875 12,544,657 20,184,327 20,303,609 5,909,456 6,335,650 6,589,380 7,122,586 7,327,904 7,490,244 9,165,593 11,411,248 17,270,805 104,733,729 43,350,105 46,450,288 85,533,310 78,708,716 109,448,244 92,038,360 90,119,811 60,046,585 $ 150,100,365 $ 147,591,999 $ 181,790,086 $ 267,049,129 $ 201,272,898 $ 173,735,548 161

CITY OF BAKERSFIELD
Change in Net Position (1) continued
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017
Business-type activities:

Charges for services:

Wastewater treatment $ 31,148,327 $ 31,437,669 $ 32,809,778 $ 33,037,996 Refuse collection 42,100,981 43,447,351 45,865,520 49,502,386 River & agricultural water 4,233,197 3,640,671 2,863,750 6,712,871 Domestic water 24,423,144 22,478,013 20,275,368 23,232,757 General aviation 303,223 315,351 327,491 325,116
Offstreet parking 67,150 78,807 134,404 146,250
Operating grants and contributions 8,601,559 8,749,741 7,283,587 7,173,227 Capital grants and contributions 17,276,815 7,402,621 16,428,109 9,741,991 Total business-type activities
program revenues 128,154,396 117,550,224 125,988,007 129,872,594 Total primary government
program revenues 300,105,758 284,316,263 313,569,218 298,720,003 Net (Expenses) Revenues:

Governmental activities (103,698,933) (165,102,573) (172,818,958) (205,629,547) Business-type activities 9,549,259 2,188,622 13,136,579 10,152,655 Total primary government
Net (Expenses) Revenues (94,149,674) (162,913,951) (159,682,379) (195,476,892) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 66,614,853 71,382,809 74,342,784 77,680,416 Sales and use taxes 72,442,177 70,366,255 70,786,792 65,348,910 Other taxes 988,423 1,177,810 1,176,713 1,212,122
Intergovernmental, unrestricted 152,400 150,529 149,089 169,836 Unrestricted grants and contributions 23,829,193 25,497,714 25,381,927 24,827,775 Investment earnings (loss) 948,629 487,532 2,295,536 283,544 Miscellaneous 1,683,631 2,173,532 1,613,591 1,707,873
Gain (loss) on sale of property 36,039 (8,511,599) 826,990 273,364 Transfers 1,489,500 3,584,925 1,352,562 152,000
Total Governmental Activities 168,184,845 166,309,507 177,925,984 171,655,840 Business-type activities:

Investment earnings 2,424,676 1,968,113 1,728,927 1,112,586 Gain (loss) on sale of property (4,439,038) 390,791 17,545 15,670 Transfers (1,489,500) (3,584,925) (1,352,562) (152,000) Total business-type activities (3,503,862) (1,226,021) 393,910 976,256 Total primary government 164,680,983 165,083,486 178,319,894 172,632,096 Extraordinary gain (loss) (936,660) - - -
Change in Net Position:

Governmental activities 64,485,912 1,206,934 5,107,026 (33,973,707) Business-type activities 6,045,397 962,601 13,530,489 11,128,911 Total primary government $ 70,531,309 $ 2,169,535 $ 18,637,515 $ (22,844,796) 162
Fiscal Year
2018 2019 2020 2021 2022 2023
$ 34,036,372 $ 33,916,086 $ 34,356,259 $ 35,011,460 $ 34,009,383 $ 36,560,842 51,119,909 54,158,105 56,834,796 60,544,720 65,874,392 76,907,921 7,039,283 9,643,555 7,203,989 3,886,694 6,432,162 9,931,949 26,491,151 27,744,037 28,624,932 30,211,227 30,921,823 30,282,579 347,315 318,401 301,933 333,337 314,360 592,720
114,261 160,090 153,884 100,941 116,313 146,342
9,047,127 8,406,992 7,587,747 12,105,862 9,583,100 6,577,750 4,913,540 11,977,630 10,120,482 13,829,014 11,757,533 8,694,370 133,108,958 146,324,896 145,184,022 156,023,255 159,009,066 169,694,473 283,209,323 293,916,895 326,974,108 423,072,384 360,281,964 343,430,021 (205,899,761) (191,758,534) (238,679,984) (154,605,664) (250,147,393) (274,448,793) 8,725,963 18,655,740 10,090,961 22,747,236 13,036,635 12,076,358 (197,173,798) (173,102,794) (228,589,023) (131,858,428) (237,110,758) (262,372,435) 79,774,412 83,543,561 85,558,776 92,614,863 96,169,420 103,659,840 72,322,068 94,622,228 148,259,133 180,298,616 201,046,660 199,751,271 1,308,842 1,524,996 1,341,620 1,722,078 2,053,178 1,496,831 201,875 185,685 308,043 288,061 459,088 419,097
25,140,642 25,237,610 24,763,948 25,713,508 28,518,519 30,203,358 1,295,749 2,708,894 1,707,054 53,432 (5,253,433) 7,049,209 1,754,210 1,474,916 2,670,587 3,642,011 3,627,334 2,705,121 248,579 101,086 4,060 10,682 9,361 2,164
2,032,654 4,058,397 2,064,005 (11,840,913) (3,720,254) (2,771,093) 184,079,031 213,457,373 266,677,226 292,502,338 322,909,873 342,515,798 1,878,973 5,045,825 3,671,948 649,913 (1,924,718) 3,997,545 20,370 25,454 133,322 35,457 (9,328) 50,565
(2,032,654) (4,058,397) (2,064,005) (4,073,335) (2,924,103) 144,280 (133,311) 1,012,882 1,741,265 (3,387,965) (4,858,149) 4,192,390 183,945,720 214,470,255 268,418,491 289,114,373 318,051,724 346,708,188 54,231,181 - - - - -
(21,820,730) 21,698,839 27,997,242 137,896,674 72,762,480 68,067,005 8,592,652 19,668,622 11,832,226 19,359,271 8,178,486 16,268,748 $ (13,228,078) $ 41,367,461 $ 39,829,468 $ 157,255,945 $ 80,940,966 $ 84,335,753 163

CITY OF BAKERSFIELD
Fund Balances of Governmental Funds
Last Ten Fiscal Years (1)
2014 2015
Fiscal Year
2016 2017
General Fund
Nonspendable $ 3,181 $ 1,000 $ 1,000 $ 1,025
Restricted - - - -
Committed 13,464,704 33,140,376 28,995,204 32,559,429
Assigned 34,586,157 7,254,726 4,042,766 3,567,936
Unassigned 6,502,852 383,987 8,783,314 3,115,798
Subtotal general fund 54,556,894 40,780,089 41,822,284 39,244,188 All Other Governmental Funds
Nonspendable - 944,356 44,508 7,675,326
Restricted 21,015,837 22,112,200 21,988,624 20,626,443
Committed 62,344,103 80,565,806 64,661,547 67,725,705
Assigned 58,935,265 51,017,356 51,026,114 37,747,940
Unassigned - - - -
Subtotal all other governmental funds 142,295,205 154,639,718 137,720,793 133,775,414 Total governmental fund balance $ 196,852,099 $ 195,419,807 $ 179,543,077 $ 173,019,602 Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.

Source: City Finance Department
164
2018 2019 2020
Fiscal Year
2021 2022 2023
$ 1,025 $ 51,479 $ 44,314 $ 38,724 $ 98,463 $ 99,455
- - - - - -
29,505,463 27,488,388 49,811,144 66,059,815 86,443,908 98,091,483 2,914,844 22,403,228 18,869,241 30,544,224 34,420,249 29,000,457 7,077,156 4,689,839 - 29,426,960 7,478,680 25,106,773
39,498,488 54,632,934 68,724,699 126,069,723 128,441,300 152,298,168 1,212,183 942,965 968,679 779,865 779,865 779,865
20,759,775 18,975,747 15,078,956 68,537,913 26,837,705 25,521,894 68,066,549 83,018,904 141,307,728 89,790,696 97,922,671 99,054,504 46,316,269 28,958,138 56,246,321 71,912,128 91,762,304 103,215,729 - - - - (320,921) (86,759)
136,354,776 131,895,754 213,601,684 231,020,602 216,981,624 228,485,233 $ 175,853,264 $ 186,528,688 $ 282,326,383 $ 357,090,325 $ 345,422,924 $ 380,783,401 165

CITY OF BAKERSFIELD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017 2018
Revenues:

Taxes $ 163,369,374 $ 168,047,259 $ 171,344,057 $ 168,758,632 $ 178,228,594 Licenses and permits 3,644,027 3,297,396 3,216,872 3,321,133 3,268,134 Intergovernmental 112,509,497 113,170,797 129,091,459 111,232,933 93,198,441 Charges for services 28,308,972 29,643,496 31,225,288 31,530,433 34,404,377 Fines, forfeitures &
assessments 25,732,782 21,984,077 20,337,463 21,325,888 18,887,330 Interest income (loss) 1,604,668 1,470,902 2,823,200 591,514 1,791,980 Contributions and donations 251,775 10,390 153,607 294,156 259,932 Miscellaneous 4,710,359 9,100,338 6,377,099 3,789,687 4,342,074 Total Revenues 340,131,454 346,724,655 364,569,045 340,844,376 334,380,862 Expenditures:

General government 11,888,465 19,254,079 21,404,144 21,483,266 21,883,948 Police 77,504,268 83,484,871 85,469,207 85,303,925 89,209,119 Fire 34,895,073 36,224,449 36,956,928 37,694,398 39,299,505 Public works 25,744,355 26,828,323 26,936,064 25,826,378 25,798,786 Recreation and parks 26,309,603 18,833,884 18,145,518 18,881,782 20,215,698 Development services 11,321,294 12,231,555 12,068,546 11,861,982 9,419,106 Economic/Community
development(1) - - - - -
Non-departmental 10,726,379 12,736,007 13,348,200 10,724,880 11,699,947 Capital outlay 94,992,545 134,748,520 164,583,100 134,231,542 113,952,709 Debt service:

Principal 443,124 454,964 489,828 503,828 502,352
Interest and fiscal charges 195,434 252,300 57,115 65,870 59,324 Total Expenditures 294,020,540 345,048,952 379,458,650 346,577,851 332,040,494 Excess (deficiency) of revenues over
(under) expenditures 46,110,914 1,675,703 (14,889,605) (5,733,475) 2,340,368 Other financing sources (uses):

Notes/certificate proceeds - - - - -
Transfers in 16,069,190 15,963,966 10,049,932 7,686,698 7,691,676 Transfers out (16,334,090) (17,860,400) (10,158,904) (7,686,698) (7,956,681) Extraordinary gain - - - - -
Total other financing
sources (uses) (264,900) (1,896,434) (108,972) - (265,005) Net change in fund balances $ 45,846,014 $ (220,731) $ (14,998,577) $ (5,733,475) $ 2,075,363 Debt service as a percentage of
non-capital expenditures 4.0% -13.0% 1.0% -0.6% 0.2%
Notes:
(1) Economic/Community Development became a part of Development Services.

Source: City Finance Department
166
Fiscal Year
2019 2020 2021 2022 2023
$ 204,629,052 $ 259,638,738 $ 300,024,833 $ 327,513,037 $ 334,818,480 3,483,935 3,454,071 4,001,187 3,384,880 3,739,812
88,214,967 124,484,134 194,092,532 132,065,048 105,459,811 35,435,981 32,551,009 43,705,171 45,230,702 47,876,607
20,058,536 20,828,104 25,163,614 21,038,680 17,494,003
4,373,028 2,842,822 105,421 (6,142,577) 5,910,369
372,462 241,524 369,430 209,264 54,797
3,294,244 4,712,882 5,436,208 4,803,249 2,642,294
359,862,205 448,753,284 572,898,396 528,102,283 517,996,173 22,849,651 23,763,499 19,876,458 29,410,337 32,475,729
97,029,401 106,465,614 116,398,680 136,388,113 149,324,252 40,616,758 44,793,126 49,371,815 53,004,524 56,758,508
27,310,375 28,993,981 31,703,085 34,664,649 37,396,998
20,358,886 22,214,583 23,357,612 24,994,665 30,095,350
10,415,836 15,810,027 9,375,387 11,903,919 13,747,976
- - 13,878,647 49,808,331 28,216,989
12,680,999 11,500,076 42,480,433 20,501,031 13,458,915
115,089,647 166,425,210 117,607,121 130,187,708 111,757,702 635,085 1,227,678 1,216,297 1,317,651 1,199,445
51,545 41,790 30,499 17,809 6,339
347,038,183 421,235,584 425,296,034 492,198,737 474,438,203 12,824,022 27,517,700 147,602,362 35,903,546 43,557,970 - - - - -
13,125,130 47,648,113 46,659,400 870,288 57,645,726
(13,264,112) (48,092,817) (50,541,564) (79,878,533) (65,843,219) - - - - -
(138,982) (444,704) (3,882,164) (79,008,245) (8,197,493) $ 12,685,040 $ 27,072,996 $ 143,720,198 $ (43,104,699) $ 35,360,477 0% 0 0 0.3% 0.2%
167

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
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 2023 103,659,840 199,751,271 11,135,080 4,445,163 0 14,330,295 1,496,831 334,818,480 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
168

CITY OF BAKERSFIELD
Principal Property Taxpayers
Current Year and Nine Years Ago
2014 2023
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 196,422,345 2 0.86% 208,503,231 1 0.56% Chevron USA Inc. 201,845,664 1 0.89% 181,806,711 2 0.49% Valley Plaza Mall LP 125,013,540 3 0.55% 145,383,608 3 0.39% Caifornia Water Service Company 83,735,182 5 0.37% 138,286,312 4 0.37% Castle & Cooke CA Inc. 76,768,870 6 0.34% 129,883,331 5 0.35% Walmart Stores Inc/Sam's 90,072,683 4 0.40% 121,965,088 6 0.33% Dignity Health - -% 96,221,071 7 0.26%
DS Properties LP - -% 92,404,743 8 0.25%
Bolthouse Land Company LLC - -% 69,351,380 9 0.19%
GSF Springs Investors LP 67,967,343 8 0.30% 66,069,089 10 0.18% LSREF2 Tractor REO LLC 70,087,573 7 0.31% - -%
Donahue Schriber Realty Group 63,594,316 9 0.28% - -%
Brighthouse Networks LLC 51,434,680 10 0.33% - -%
Total taxable assessed value of
ten (10) largest taxpayers 1,026,942,196 4.63% 1,249,874,564 %3.37 Total taxable assessed value of other taxpayers 21,757,719,634 -% 35,668,503,227 %- Total taxable assessed value of all taxpayers 22,784,661,830 4.63% 36,918,377,791 %3.37 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 169

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
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
2023 27,378,429 5,538,516 4,742,249 867,539 1,608,355
(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 2022-23 Combined Tax Rolls. 170
Total Taxable Total
Estimated
Actual
Assessed
Value
Direct
Rate
Taxable
Value (1)
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
36,918,378 0.1639 Unavailable
171

CITY OF BAKERSFIELD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
2014 2015 2016 2017
Basic County-Wide Levy (1) 1.0000 1.0000 1.0000 1.0000
Overlapping Debt
Bakersfield Refund 1989C & D - - - -
Bakersfield School 0.0360 0.0186 0.0339 0.0204
Beardsley School 0.0486 0.0406 0.0480 0.0723
Edison School Bond 0.0687 0.0678 0.0716 0.0706
Fairfax School 0.0607 0.0692 0.0712 0.0631
Fruitvale School Bonds 0.0678 0.0595 0.0591 0.0516
Greenfield School 0.0843 0.0544 0.0445 0.0438
Kern Community College District 0.0126 0.0105 0.0136 0.0132 Kern County Water Agency 0.0569 0.0525 0.0537 0.0585
Kern High School District 0.0392 0.0361 0.0324 0.0260
Lakeside School 0.0283 0.0254 0.0267 0.0236
Lamont School 0.0681 0.0630 0.0657 0.0681
Norris School 0.0500 0.0489 0.0498 0.0565
Panama Buena Vista School 0.0194 0.0294 0.0330 0.0243
Rio Bravo-Greeley 0.0769 0.0649 0.0581 0.0629
Standard Bond - 0.0208 0.0219 0.0403
Standard Bond 2006A 0.0152 0.0110 0.0140 -
Vineland School 07-A 0.0418 0.0431 0.0456 0.0441
Total Direct & Overlapping Tax Rates (2) 1.7745 1.7157 1.7428 1.7393 City Share of 1% Levy (3) 0.1839 0.1839 0.1839 0.1839
Total Direct Rate (4) 0.1619 0.1623 0.1616 0.1613
(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) 172
2018 2019 2020 2021 2022 2023

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
- - 0.0020 - -

0.0522 0.0449 0.0379 0.0466 0.0386 0.0348

0.0638 0.0671 0.0659 0.0559 0.0647 0.0480

0.0755 0.0738 0.0644 0.0640 0.0690 0.0619

0.1075 0.1009 0.0743 0.0754 0.0819 0.0806

0.0534 0.0731 0.0525 0.0454 0.0503 0.0445

0.0419 0.0398 0.0678 0.0683 0.0764 0.0812

0.0363 0.0337 0.0330 0.0339 0.0386 0.0312

0.0785 0.0707 0.0812 0.0791 0.0791 0.0768

0.0533 0.0512 0.0532 0.0485 0.0417 0.0439

0.0264 0.0242 0.0250 0.0300 0.0300 0.0223

0.0682 0.0639 0.0659 0.0655 0.0641 0.0618

0.0579 0.0373 0.0391 0.0378 0.0521 0.0399

0.0224 0.0288 0.0558 0.0521 0.0512 0.0475

0.0687 0.0517 0.0720 0.0636 0.0703 0.0535

0.0770 0.0602 0.0663 0.0617 0.0807 0.0634
- - - - - -

0.0453 0.0238 0.0437 0.0274 0.0316 0.0301

1.9283 1.8451 1.9000 1.8552 1.9203 1.8214

0.0184 0.1839 0.1839 0.1839 0.1839 0.1839

0.1609 0.1607 0.1604 0.1647 0.1641 0.1639
173

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)
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% 2023 61,652,588 60,603,853 98.30% 505,413 61,109,266 99.12% 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
174

CITY OF BAKERSFIELD
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Year
State of
California
Total
Rate
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
2023 %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 175

CITY OF BAKERSFIELD
Taxable Sales By Category Market Groups
Last Ten Calendar Years
(in thousands of dollars)
2013 2014 2015 2016 2017
Apparel Stores $ 266,054 $ 268,897 $ 275,099 $ 281,878 $ 287,232 General Merchandise 903,975 902,944 907,685 893,331 917,083 Food Stores 159,943 172,326 164,207 158,627 158,343
Eating and Drinking Places 610,825 656,379 701,627 724,843 767,018 Building Materials 506,395 544,666 553,276 564,361 581,131 Auto Dealers and Supplies 1,220,899 1,315,912 1,355,170 1,346,606 1,431,179 Service Stations 542,816 528,591 455,773 409,770 460,705 Other Retail Stores 789,548 841,272 816,507 786,449 783,220 All Other Outlets 1,895,186 1,938,339 1,558,102 1,467,580 1,588,600 Total $ 6,895,641 $ 7,169,326 $ 6,787,446 $ 6,633,445 $ 6,974,511 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. 176
2018 2019 2020 2021 2022
$ 302,599 $ 308,328 $ 242,398 $ 392,748 $ 359,429
950,000 963,148 956,554 1,138,471 1,203,850
165,416 171,118 198,136 205,484 221,840
802,252 847,033 755,367 1,032,165 1,097,528
630,907 636,725 733,067 800,456 843,459
1,436,629 1,479,028 1,540,188 1,975,894 1,945,615
530,371 539,165 433,906 620,017 754,195
789,365 773,010 746,515 930,124 905,566
1,679,685 1,837,407 2,052,473 2,262,334 2,732,924
$ 7,287,224 $ 7,554,962 $ 7,658,604 $ 9,357,693 $ 10,064,406 177

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
2014 $ - $ - $ - %- 367,315 $-
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
2023 $ - $ - $ - - 411,109 0.00
Notes:

Includes all long-term general obligation bonded debt.
(1) State Department of Finance
Source: City Finance Department
178
179

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
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 -
2023 - 2,348,224 - 2,348,224 111,096,000 -
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
180
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)
$ - $ 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 - 2,435,190 335,448 67,692 113,934,330 116,282,554 %1.01 285 181

CITY OF BAKERSFIELD
Direct and Overlapping Debt (1)
As of June 30, 2023
2022 - 22 Assessed Valuation $ 36,911,199,722
Adjusted Assessed Valuation $ 36,911,199,722
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 $ 88,698,557 34.346 $ 30,464,406 Kern Community College District School
Facilities Improvement District No. 1 329,853,183 34.140 112,611,877 Kern High School District 322,876,209 53.344 172,235,085 Bakersfield City School District 128,626,619 71.365 91,794,387 Beardsley School District 19,821,040 19.958 3,955,883
Edison School District 6,694,465 0.055 3,682
Fairfax School District 8,215,014 28.454 2,337,500
Fruitvale School District 33,097,205 75.444 24,969,855
Greenfield Union School District 46,373,406 86.103 39,928,894 Lakeside Union School District 17,844,044 46.514 8,299,979 Lamont School District 1,293,153 0.016 207
Norris School District 32,974,305 57.748 19,042,002
Panama-Buena Vista Union School District 130,975,000 97.255 127,379,736 Rio Bravo-Greeley Union School District 8,162,621 7.798 636,521 Standard School District 46,375,000 0.755 350,131
Vineland School District 3,431,856 0.0003 10
California Statewide Community Development Authority-Community Facilities District No. 2015-02 9,915,000 100.000 9,915,000 Greenfield Union School District CFD No. 1 3,389,840 100.000 3,389,840 Greenfield Union School District CFD No. 2 960,000 100.000 960,000 Greenfield Union School District CFD No. 4 8,045,000 100.000 8,045,000 Greenfield Union School District CFD No. 2005-3 1,850,890 100.000 1,850,890 RNR School Financing Authority Community Facilities District No. 92-1 114,210,000 74.334 84,896,861 California Statewide Community Development Authority- Assessment District No. 2020-01 1,488,000 100.000 1,488,000
California Statewide Community Development Authority- Assessment District No. 2022-01 824,000 100.000 824,000
California Statewide Community Development Authority- Assessment District No. 2022-02 1,135,000 100.000 1,135,000
City of Bakersfield 1915 Act Bonds 9,273,224 100.000 9,273,224 Overlapping Tax and Assessment Debt $ 1,376,402,631 $ 755,787,970 Overlapping General Fund Debt
Kern County General Fund Obligations $ 104,963,511 33.336 $ 34,990,636 Kern County Pension Obligations 94,617,067 33.360 31,541,545 Certificates of Participation:

Kern County Board of Education 31,330,000 33.336 10,444,169 Kern County Community College District 23,000,000 30.771 7,077,330 Kern County Community College District Benefit 73,200,000 30.771 22,524,372 Fairfax School District General Fund Obligations 1,849,180 28.454 526,166 Bakersfield City School District General Fund Obligations 2,209,166 71.365 1,576,571 Panama-Buena Vista Union School District General Fund Obligations 49,975,000 97.255 48,603,186 Rosedale Union School District General Fund Obligations 9,550,000 55.584 5,308,272 Overlapping Tax Increment Debt (Successor Agency) 1,730,000 100.000 1,730,000 Overlapping General Fund Debt $ 392,423,924 $ 164,322,247 Total Overlapping Debt $ 1,768,826,555 $ 920,110,217
Direct Debt
City of Bakersfield
Long-term notes payable $ 2,348,224
Total Direct and Overlapping Debt $ 922,458,441
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 182

CITY OF BAKERSFIELD
Computation of Legal Debt Margin
June 30, 2023
Legislation does not mandate a debt limit for the City of Bakersfield. 183

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 2013-2014 $ 39,610,854 $ 14,265,421 $ 25,345,433 $ 3,260,000 (7) $ 9,959,591 1.92 2014-2015(5) 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 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(8) 42,531,887 18,800,960 23,730,927 17,948,753 2,849,736 1.14 2020-2021(9) 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 2022-2023 43,719,490 20,314,066 23,405,424 7,995,000 4,062,172 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
184

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)
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 392,756 9,890 25,180 30.7 80.4 26,590 5.30%
2020-2021(6) 397,392 10,227 25,734 30.8 80.1 - 11.20%
2021-2022 408,865 10,374 25,372 31.0 81.4 N/A 8.00% 2022-2023 408,373 11,499 28,157 31.3 81.5 N/A 4.80% 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. 185

CITY OF BAKERSFIELD
Principal Employers (1)
Current Year and Nine Years Ago
2014 2023
Employer Employees Rank
Percent
of Total City
Employment Employees Rank
Percent
of Total City
Employment
County of Kern (1) 7,811 %4.70 7,923 1 %4.64
Kern High School District (1) 3,888 4,921 2 %2.88
Bakersfield City School District 3,203 4,137 32.42 %-
San Joaquin Community Hospital 2,039 - 4 %-
WM Bolthouse Farms 1,937 2,601 5 %1.52
Panama-Buena Vista Union School
District 2,038 3,040 6 %1.78
Chevron Corp 1,873 2,400 7 %1.41
Nabors Completion & Production
Service 1,700 - 8 %-
Bakersfield Memorial Hospital 1,650 1,994 9 %1.17
City of Bakersfield 1,455 1,553 10 %0.91
Others 138,506 142,131 %83.26
Total 166,100 %100.00 170,700 %97.57
(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.
186

CITY OF BAKERSFIELD
Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019
Function
Governmental activities:

General government 119 126 123 123 124 143
Public safety
Police
Officers 394 404 404 407 407 450
Civilians 143 148 148 148 151 176
Fire
Firefighters and officers 177 177 177 177 177 184
Civilians 22 22 22 22 23 23
Public works 254 248 244 243 247 261
Community services 150 150 146 146 148 163
Community development 63 65 63 63 63 -
Development services - - - - - 79
Economic/Community dev. - - - - - -
Business-type activities:

Wastewater treatment 59 59 59 59 61 62
Refuse collection 107 107 107 108 109 111
River & Agricultural Water (1) 28 28 28 29 29 30
General aviation - - - - - -
Offstreet parking - - - - - -
Total 1,516 1,534 1,521 1,525 1,539 1,682
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department
187
2020 2021 2022 2023
159 158 181 172
479 501 502 531
193 216 229 205
200 199 199 199
25 25 33 32
293 277 305 305
175 180 203 203
- - - -
92 125 104 110
- - 30 29
64 62 49 50
112 115 122 122
32 32 32 36
- - - -
- - - -
1,824 1,890 1,989 1,994
188

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
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
2022 70 42,426 1,164 356,363 420,354
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, 2023 data reflects the 2022 calendar year.

Source: City Finance Department
189
Total
Construction
No. of
Units Value
Bank
Deposits (2)
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
1,234 819,143 10,298,664
190

CITY OF BAKERSFIELD
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017
Function
Public safety - Police
Physical arrests 37,246 24,254 19,965 13,008
Parking violations 10,499 6,183 4,083 3,843
Traffic violations 15,065 24,154 26,934 24,190
Public safety - Fire
Number of calls answered 32,898 35,117 35,747 38,823
Inspections 4,195 4,978 5,684 6,859
Public works
Street resurfacing (lane miles) 116 119 79 70
Refuse collection
Refuse collected (tons/day) 110,125 102,500 102,800 103,100 Recyclables collected (tons/day) 55,500 78,500 79,100 79,500 Recreation & parks
Athletic field permits issued 9,625 9,046 8,054 7,788
Community center,
aquatics/sports admissions 502,994 527,617 553,831 518,432 River & Agricultural water (1)
New connections 1,123 1,033 945 968
Water main breaks 4 5 4 4
Average daily consumption 39,712 34,973 29,812 33,378
(thousands of gallons)
Wastewater treatment
Average daily sewage treatment 30.0 MGD 29.9 MGD 28.7 MGD 29.0 MGD (millions of gallons)
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department
191
Fiscal Year
2018 2019 2020 2021 2022 2023
9,502 9,895 8,569 7,190 8,859 9,620
2,238 10,438 14,207 7,297 18,053 11,958
16,548 24,739 21,879 23,679 18,080 28,772
40,945 42,027 44,560 49,465 50,625 50,022
5,649 8,712 8,330 4,694 7,401 11,972
75 115 90 100 130 90
102,200 175,081 177,885 220,259 223,469 -
82,700 87,680 89,786 66,956 62,253 -
8,224 7,046 4,589 794 2,088 3,571
534,959 542,580 431,568 81,245 255,498 335,429
500 755 714 675 1,124 769
3 2 3 5 2 -
36,128 35,588 40,173 48,247 40,976 36,177

29.6 MGD 28.9 MGD 29.1 MGD 29.4 MGD 29.9 MGD 29.2 MGD
192

CITY OF BAKERSFIELD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017
Function
Land (1)
Area 150.18 150.18 150.97 151.10
Public safety
Police stations/substations 3 3 3 3
Fire stations 14 14 14 14
Refuse collection
Collection trucks 57 57 57 57
Public works
Streets (miles) (2) 1,441 1,441 1,553 1,596
Streetlights 16,388 16,486 16,781 17,042
Traffic signals 410 419 420 426
Recreation & parks
Parks acreage 623 769 769 776
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) 505 515 525 535
Fire hydrants (2) 10,723 10,853 11,117 11,130
Wastewater treatment
Sanitary sewers (miles) 1,063 1,072 1,076 1,077
Storm sewers (miles) 265 268 269 270
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
193
Fiscal Year
2018 2019 2020 2021 2022 2023
151.10 151.14 151.15 151.15 151.64 -
3 3 3 3 2 2
14 14 14 14 14 14
57 67 74 66 71 -
1,505 1,506 1,517 1,537 1,492 -
18,632 18,635 18,639 19,095 19,850 19,595
428 431 433 440 447 -
810 810 828 662 662 662
59 59 61 61 61 61
4 4 4 4 4 4
3 3 3 3 3 3
589 592 608 615 620 626
11,396 11,467 11,697 11,814 11,966 12,096
1,077 1,086 1,090 1,099 1,107 -
270 274 276 280 284 -
57 MGD 57 MGD 57 MGD 57 MGD 57 MGD 57 MGD
194

CITY OF BAKERSFIELD
Schedule of Insurance in Force
June 30, 2023
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 for boiler and machinery deductible.

Machinery
Machinery
Auto-Physical Damage
Coverage for vehicles/equipment values up to $250,000
subject to a $15,000 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).

PRISM
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. 195
Insurance Company Policy Number
Expiration
Date Annual Premium
PRISM PRISMPE22 EWC-04 07/01/2023 $ 1,759,987
ACCEL ACC2122BAK71 07/01/2023 5,909,161
National Union Fire ACIP14249761 07/01/2023 18,477
Pik West AAPN14413352002 07/01/2023 4,732
Pik West AACN10687846002 07/01/2023 8,385
Hudson SFD3121120504 10/01/2023 12,510
CSAC PROPERTY2023 03/31/2023 797,860
PRISM PRISMPR23-24 03/31/2024 991,027
PRISM B0180FN2233951 06/30/2023 60,591
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
196
197

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

In planning and performing our audit of the financial statement s of the governmental activities, the business-type activities, each major fund, and the aggregate re maining fund information of the City of Bakersfield (the City) as of and for the year ended June 30, 20 23, in accordance with auditing standards generally accepted in the United St ates of America, we consider ed the City’s system of internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal c ontrol was for the limited purpo se described in the preceding paragraph and was not designed to identify all deficiencies in internal c ontrol that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. However, during our audit, we became aware of a nother matter that is an opportunity for strengthening internal controls and operating efficiencies. The recommendation is listed in this report summarize our comments and suggestions regarding this matter.

A deficiency in internal control exists when the design or oper ation of a control does not allow management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal cont rol, such that there is a reaso nable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, during our audit, we became aware of certain matters t hat are opportunities for strengthening internal controls and operating efficiencies. The recommendatio ns listed in this report summarize our comments and suggestions regarding these matters.

We will review the status of thes e comments duri ng our next aud it engagement. We have already discussed these comments and suggestions with various personnel s of the City, and we will be pleased to discuss these matters in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.

Current Year Agreed Upon Condition and Response

Condition – Ineffective Financial Closing and Reporting Process

During audit procedures performed, we noted there was an ineffe ctive operation of the financial closing and reporting process, resulting in untimely financial statemen ts preparation and delays in finalizing the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. These delays created challenges in developing and executing timely audit procedures and results.

Recommendation

We recommend the City implement a more structured closing proce ss with comprehensive year-end close checklists, assigned dut ies, and adhere to strict due dat es. Implementing processes to close the City’s financial records prior to the start of the audit will a llow audit procedures and risk assessment procedures to be appropriately developed, and audit work completed in a timely manner.

Management Response and Planned Correction

The City agrees with the recomme ndation. There are a number of mitigating circumstances that the Finance Department has had to wor k through and is still working through. Loss of experienced staff, an ongoing implementation project for a new Enterprise Resouce Pla nning (ERP) software, and deficient training processes all have played a factor in the delays from FY 2022 to today. The department has reordered priorities to focus on annual reporting needs, puttin g the ERP secondary to anything related to the financial close and the completion of the next year’s finan cial statements. In addition, training regimens have been initiated to build stronger capacity for sta ff, specifically with regards to governmental accounting and reporting requirements.

********

This communication is intended solely for the information and u se of management, the City Council, and others within the City, and is not intended to be and should no t be used by anyone other than these specified parties.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 26, 2024

REQUIRED COMMUNICATION IN ACCORDANCE
WITH PROFESSIONAL STANDARDS (SAS 114)

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

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bakersfield (the City) for the year ended June 30, 2023. Professional standards require that we pro vide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, as well as certain information relate d to the planned scope and timing of our audit. We h ave communicated such information in our letter to you dated April 9, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters

Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropri ate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. During the year ended June 30, 2023, the City adopted the provisions of Governm ental Accounting Standards Board (GASB) Statement No. 91, Conduit Debt Obligations; GASB Statement No. 94, Public-Private Partnerships and Availability Payment Arrangements; and GASB Statement No. 96, Subscription Based Information Technology Arrangements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensu s. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial stat ements prepared by management and are based on management’s knowledge and experience about past and c urrent events and assumptions about future events. Certain acc ounting estimates are particula rly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates in establishing allowances for accounts receivable, estimated date of collection to comply with the pe riod of availability for certai n revenues, estimated net pension liability and related pension expense and deferred inflows of resources and outflows of resources, establishing the net other post- employment benefits (OPEB) liab ility and related OPEB expense and deferred inflows of resources and outflows of resources, ma nagement’s estimate over self- insurance claims liabilities, m anagement estimates for the dete rmination of fair value of investments, and the estimated useful lives of capital assets, which are derived by various methods as detailed in the notes , and management’s estimate of the incremental borrowing rate as the discount rate for leases and the lease term. We evaluated the key factors and assumptions used to develop these estimates in determining that they are re asonable in relation to the financial statements taken as a whole.

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

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

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

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

Corrected and Uncorrected Misstatements
Professional standards require u s to accumulate all known and l ikely misstatements identified during the audit, other than those that are clearly trivial, and communica te them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements.

Management has determined that their effects are immaterial, bo th individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to b e materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit.

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

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 26, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain sit uations. If a consultation involves application of an accounting principle to t he City’s financial statements o r a determination of the type of auditor’s opinion that may be expressed on those statements, our professi onal standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

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

Other Matters

We applied certain limited procedures to Management’s Discussio n and Analysis, the Budgetary Comparison Schedules for the General Fund and Major Special Rev enue Funds, the City’s Retirement Plans’ Schedules of Changes in the Net Pension Liability and Re lated Ratios, the Schedules of Pension Contributions, the Other Post-Em ployment Benefit (OPEB) Plan - Schedule of Changes in the City’s Net OPEB Liability and Related Ratios, and the Schedule of OPEB Con tributions, which are required supplementary information (RSI) that supplement the basic finan cial statements. Our procedures consisted of inquiries of manag ement regarding the methods of p reparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the Schedule of Expenditures of Fe deral Awards, Combining and Individual Major and Nonmajor Fund Financial Statements, Schedule of Long-Term Debt Recorded in the Private Purpose Trust Fund, and Other Supplementary Information , which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of prep aring the information to determine that the information complies wi th accounting principles genera lly accepted in the United States of America, the method of preparing it has not changed from the pr ior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting reco rds used to prepare the financial statements or to the financial statements themselves.

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

Restriction on Use

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

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 26, 2024

City of Bakersfield
Uncorrected Misstatements
June 30, 2023
Account Description Debit Credit
OPEB Contributions 1,241,992
Deferred Outflows - Contributions Subsequent to the Measurement Date 1,241,992 Total 1,241,992 1,241,992
Uncorrected Journal Entrie JE # 1
To adjust PY ending equity to agree to CY beginning balances

Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield
and Dignity Health Amphitheatre

Consolidated Financial Statements

June 30, 2023

C O N T E N T S

Page(s)

Independent Auditors’ Report 1 - 2

Management’s Discussion and Analysis (Required Supplementary Information) 3 - 6

Consolidated Financial Statements

Consolidated statement of net position 7
Consolidated statement of revenues, expenses and change in net position 8 Consolidated statement of cash flows 9 - 10
Notes to consolidated financial statements 11 - 18

Supplementary Information

Consolidated schedule of operating expenses 19

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 20 - 21

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Facilities' internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the combined financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Mechanics Bank Arena, Theater , Convention Center, Valley Children's Ice Center of Bakersfield and Dignity Health Amphitheatre's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 6. Such information is the responsibility of management and, required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economic , or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audits were conducted for the purpose of forming an opinion on th.e combined financial statements that collectively comprise the Facility's basic financial statements. The supplementary information on page 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America . In our opinion, the schedule is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 24, 2024, on our consideration of the Facility's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Facility's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Facility's internal control over financial reporting and compliance.

BARBICH HOOPER KING

DILL HOFFMAN, LLP
Bakersfield, California
March 24, 2024
- 2 -
Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield
and Dignity Health Amphitheatre

Management’s Discussion and Analysis

- 3 -

JULY 2022 TO JUNE 2023
MECHANICS BANK ARENA, THEATER, CONVENTION CENTER, VALLEY CHILDREN’S

ICE CENTER OF BAKERSFIELD AND DIGNITY HEALTH AMPHITHEATRE MANAGEMENT

DISCUSSION AND ANALYSIS

This section of Mechanics Bank Arena, Theater, Convention Center, Valley Children’s Ice Center of
Bakersfield and Dignity Health Amphitheatre’s (the Facilities) annual financial report presents our discussion and analysis of the Facilities’ financial performance during the fiscal year ended June 30, 2023. Please read it in conjunction with the Facilities’ consolidated financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

In the 2022/2023 fiscal year, the total net position of the fac ilities increased $1.1 million, revenues increased $1.7 million, and total assets increased $5.7 million in comparison to prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS

The annual report includes this management’s discussion and analysis, the independent auditors' report and the basic consolidated financial statements of the Facilities.

REQUIRED FINANCIAL STATEMENTS
The financial statements of the Facilities report information using accounting methods similar to those used by private sector companies. These statements offer short and long term financial information about its activities. The Statement of Net Position includes all of the Facilities’ assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to the Facilities’ creditors (liabilities). It also provides the basis for evaluating the Facilities’ capital structure as well as assessing the liquidity and financial flexibility of the Facilities.

All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses and Change in Net Position. This statement measures the success of the Facilities’ operations over the past year and can be used to determine whether the Facilities has successfully recovered all its costs through its user fees and other charges, profitability and credit worthiness.

The final required financial statement is the Statement of Cash Flows. This statement reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities and provides answers to such questions as where did cash come from, what was cash used for, and what was the change in the cash balance during the reporting period.

Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield
and Dignity Health Amphitheatre

Management’s Discussion and Analysis

- 4 -

FINANCIAL ANALYSIS OF THE FACILITIES
One of the most important questions asked about the Facilities’ finances is, “Are the Facilities as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the Facilities’ activities in a way that will help answer this question. These two statements report the net position of the Facilities and the changes in net position. One can think of the Facilities’ net position - the difference between assets and liabilities - as one way to measure financial health or financial position. Over time, increases or decreases in the Facilities’ net position is one indicator of whether its financial health is improving or deteriorating. However, one will need to consider other non-financial factors such as changes in economic conditions, population growth, and new or changed government legislation.

Below is a summary of the Consolidated Statements of Net Position, Table A-1:

Dollar Percentage
2023 2022 Change Change
Current assets 10,958,301 $ 5,636,548 $ 5,321,753 $ 94% Total assets 10,958,301 $ 5,636,548 $ 5,321,753 $ 94% Current liabilities 9,282,535 $ 5,087,820 $ 4,194,715 $ 82% Other liabilities 250,000 250,000 - 0% Total liabilities 9,532,535 5,337,820 4,194,715 79% Unrestricted 1,425,766 298,728 1,127,038 377% Total net position 1,425,766 298,728 1,127,038 377% 10,958,301$ 5,636,548 $ 5,321,753 $ 94%
Table A-1
Condensed Consolidated Statements of Net Position

Assets increased approx. $5.3M dollars. The increase in current assets can be attributed increased cash received for ticket sales and receivables collected. The $4.1 million increase in liabilities can be attributed to an extremely busy event calendar, highly popular artist lineups resulting in increased advanced ticket sales, suite sales and deferred suite license and sponsorship revenues.

Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield
and Dignity Health Amphitheatre

Management’s Discussion and Analysis

- 5 -
Dollar Percentage
2023 2022 Change Change
Operating revenues 11,231,318 $ 9,488,442 $ 1,742,876 $ 18% Less direct event expenses 5,079,981 5,014,781 65,200 1% Gross profit 6,151,337 4,473,661 1,677,676 38% Operating expenses 5,059,536 4,176,250 883,286 21% Operating increase 1,091,801 297,411 794,390 267% Nonoperating income 35,237 1,317 33,920 2576% Change in net position 1,127,038 298,728 828,310 277% Net position, beginning of year 298,728 - 298,728 0% Net position, end of year 1,425,766$ 298,728 $ 1,127,038 $ 377% Table A-2
Condensed Consolidated Statements of Revenues, Expenses and Changes in Net Position The current fiscal year operations resulted in the facilities recognizing $1.1M in operating income for the current year. There was a minimal increase for direct event expenses as we continue to monitor event staffing cost ($65k). Operating expenses increased by $883k in the current year due to overall increases in utility cost, salaries and wages, and general liability insurance. Revenues increased $1.7M for suite and parking revenues, but most notable are facility rents, reimbursables, concessions commissions and facility fees.

Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield
and Dignity Health Amphitheatre

Management’s Discussion and Analysis

- 6 -
Over (Under) Percentage
Actual Budget Budget of Budget
Operating revenues 11,231,318 $ 9,178,749 $ 2,052,569 $ 22% Less direct event expenses 5,079,981 4,483,518 596,463 13% Gross profit 6,151,337 4,695,231 1,456,106 31% Operating expenses 5,059,536 5,024,497 35,039 1% Operating income 1,091,801 (329,266) 1,421,067 -432% Nonoperating income 35,237 40,000 (4,763) -12% Change in net position 1,127,038$ (289,266) $ 1,416,304 $ -490% Year Ended June 30, 2023
Table A-3
Change in Net Position, Actual to Budget
Gross operating revenues for the year were more than budgeted. Increases are attributed to the building being 100% functional for the year. Revenues increase can be found in suites and sponsorships, rent, parking, facility fees, and concessions. Rate increase for rent, parking and facility fees are contributing factors of revenue improvements. A strong concert line up and improved attendance help boost commissions on concessions for the year, making history for the Arena.

CONTACTING MECHANICS BANK ARENA
This financial report is designed to provide a general overview of the finances and accountability of Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield and
Dignity Health Amphitheatre. If you have questions about this report contact Mechanics Bank Arena, Theater, Convention Center, Valley Children’s Ice Center of Bakersfield and Dignity Health Amphitheatre, 1001 Truxtun Avenue, Bakersfield, California 93301, Attention Finance Manager.

- 7 -

ASSETS
Current Assets
Cash 10,368,311$
Accounts receivable 543,697
Prepaid expenses 46,293
10,958,301
Capital Assets , at cost 18,896
Less accumulated depreciation 18,896
-
10,958,301$

LIABILITIES AND NET POSITION
Current Liabilities
Accounts payable, trade 177,916 $
Accounts payable, AEG Management, net 369,937
Accrued expenses 481,754
Deferred revenues 7,243,470
Advance from the City of Bakersfield 1,009,458
9,282,535
Other Liabilities 250,000
Net Position
Unrestricted 1,425,766
10,958,301$
See Notes to Consolidated Financial Statements.

Mechanics Bank Arena, Theater, Convention Center,
June 30, 2023
Consolidated Statement of Net Position
and Dignity Health Amphitheatre
Valley Children's Ice Center of Bakersfield

- 8 -
Mechanics Bank Arena, Theater, Convention Center,
Valley Children's Ice Center of Bakersfield
and Dignity Health Amphitheatre

Consolidated Statement of Revenues, Expenses and Change in Net Position For the Year Ended June 30, 2023
Net revenues:

Facilities rent 2,209,693 $
Recovered event expenses 2,085,637
Suites 1,294,044
Concession commissions 1,747,023
Signage and advertising 861,110
Ticketing fees 1,046,646
Facility fees 723,751
Parking 446,805
Ice Sports Center, other revenue 154,790
Ice Sports Center, general admissions 545,466
Merchandise 89,842
Other income 26,511
11,231,318
Direct event expenses:

Event labor 2,714,517
Other direct event expenses 2,365,464
5,079,981
Gross profit 6,151,337
Operating expenses 5,059,536
Operating income 1,091,801
Nonoperating income (expense):

Interest income 119,982
Other income, net 234,406
Management incentive fee (319,151)
35,237
Change in net position 1,127,038
Net position, beginning of year 298,728
Net position, end of year 1,425,766$
See Notes to Consolidated Financial Statements.

- 9 -
Mechanics Bank Arena, Theater, Convention Center,
Valley Children's Ice Center of Bakersfield
and Dignity Health Amphitheatre
Consolidated Statement of Cash Flows
For the Year Ended June 30, 2023
Cash flows from operating activities:

Cash received from customers 8,405,923 $
Cash received from contracts for services 6,210,947
Cash payments to suppliers for goods and services (4,205,412) Cash payments to employees for services (5,003,156)
Net cash provided by operating activities 5,408,302
Cash flows from investing activities:

Interest income 119,980
Net increase in cash and cash equivalents 5,528,282
Cash and cash equivalents, beginning of year 4,840,029
Cash and cash equivalents, end of year 10,368,311$
See Notes to Consolidated Financial Statements.

- 10 -
Reconciliation of operating income to net cash provided by operating activities:

Operating income 1,091,801 $
Adjustments to reconcile operating income to net
cash provided by operating activities:

Other income 234,406
Management incentive fee (319,151)
Changes in operating assets and liabilities:

Accounts receivable 216,241
Net receivable from the City of Bakersfield (501,745)
Prepaid expenses (9,711)
Accounts payable, trade 787,735
Accounts payable, AEG Management, net 179,998
Accrued expenses 56,380
Deferred revenues 3,672,348
Net cash provided by operating activities 5 ,408,302$

Mechanics Bank Arena, Theater, Convention Center,
Valley Children’s Ice Center of Bakersfield
and Dignity Health Amphitheatre

Notes to Consolidated Financial Statements

- 11 -
Note 1. Nature of Business an d Significant Accounting Policies Nature of business:

The City of Bakersfield (the City) owns the Mechanics Bank Arena, Theater, Convention Center, Valley Children’s Ice Center of Bakersfield and Dignity Health Amphitheatre (the Facilities). The Mechanics Bank Arena was built by the City and began operations in October 1998. It is the only building of its kind in the Bakersfield area.

In December 2003, the City opened the Valley Children’s Ice Center of Bakersfield (Ice Center). The Ice Center is used for public skating, hockey leagues, figure skating, and other community events.

In February 2007, the City opened the Dignity Health Amphitheatre (the Amphitheatre), an outdoor theatre located in Bakersfield.

The activities of the Arena, Theater, Convention Center, Ice Center and Amphitheatre (the Facilities) are recorded in a special revenue fund of the City’s accounting records. The City owns all the assets of the Facilities, and accordingly, all amounts related to the operation of the Facilities belong to the City. The management company operating the Facilities has a fiduciary responsibility under the management agreement to maintain and operate the Facilities in the best interests of the City and the community.

In an agreement dated March 20, 2013, the City contracted with AEG Management Bakersfield, LLC and AEG Facilities, LLC to begin overseeing the operation and management of the Facilities for a term of ten years, expiring on June 30, 2023. On mutual agreement between both parties, the agreement was extended through June 30, 2028.

In October 2019, AEG Facilities, LLC and SMG merged and are now ASM Global (ASM), a division of AEG Corporate.

ASM was hired by the City for its expertise in the management, operation and marketing of public assembly facilities.

Principles of consolidation:

The consolidated financial statements of the Facilities include the accounts of the Mechanics Bank Arena, Theater, Convention Center, Valley Children’s Ice Center of Bakersfield and Dignity Health Amphitheatre after elimination of all significant inter- company accounts and transactions.

Basis of accounting:

The Facilities’ basic consolidated financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. The Facilities utilize accrual basis accounting in which revenues are Notes to Consolidated Financial Statements

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recognized when earned and expenses are recorded when a liability is incurred or economic assets are used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating.

Revenue recognition:

Suite contracts
Revenues from suites are recognized over the contract period per the contract terms.

Contracts are billed throughout the year. The suite payments are recorded as deferred revenue until earned and are recognized over the contract period.

Naming rights, signage and advertising contracts
Revenues from naming rights, signage and advertising contracts are recognized over the contract period per the contract terms. Contracts are billed according to the contract terms. Payments are recorded as deferred revenue until earned and recognized over the contract period.

Ticket sales
The Facilities, through its contract with Outbox AXS, LLC, sells tickets to events as an agent of the event holder at the on-site box office location and through the telephone and internet. All proceeds from the sale of tickets belong to the event holder. The ticket sales are recorded as deferred revenue when sold. After the event has occurred, settlement with the event holder takes place. The net of total ticket sales less event expenses such as facility rent and reimbursement of direct event expenses is then paid to or received from the event holder. The event ticket proceeds are removed from the deferred revenue account in the month the event occurred.

The Facilities earn a ticketing fee on the sale of event tickets that take place through the telephone and internet. Revenues from these fees are recorded as deferred revenue at the time of sale and are recognized in the month the event occurred.

Event revenues
Revenues from the Facilities’ events such as facilities rent, direct event expense reimbursements, concession commissions, parking and merchandise are recognized in the month the event occurred.

Net position:

The Facilities utilize a net position presentation in accordance with GASB Statement 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments, as amended by GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.

Notes to Consolidated Financial Statements

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Net position is categorized as invested in capital assets, net of related debt, restricted components of net position and unrestricted components of net position. These categories are defined as follows:

Invested in capital assets, net of related debt - This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.

Restricted components of net position - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with the restricted assets reported.

Unrestricted components of net position - This component of net position is the net amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

Use of estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents:

For purposes of reporting cash flows, the Facilities considers highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents also include cash on hand and amounts deposited with banks.

Notes to Consolidated Financial Statements

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Custodial credit risk:

The California Government Code and the Facilities’ investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits and investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Facilities’ deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

Cash funds deposited with various banks and savings and loans are covered by Federal depository insurance up to $250,000. As of June 30, 2023, the Facilities has cash deposited with banks in excess of the related insurance coverage.

Concentration of credit risk:

Credit is extended, in the form of accounts receivable, to customers located primarily in the County of Kern, California.

Accounts receivable:

Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to valuation allowance based on its assessments of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Based on management’s assessment of the credit history with customers having outstanding balances and current relationships with them, they have concluded that an allowance for doubtful accounts is not necessary as of June 30, 2023.

Capital assets:

The Facilities’ capital assets are recorded at cost. Depreciation is computed using the straight line method over estimated useful lives of 3 - 10 years.

Maintenance and repairs of capital assets are charged to operations and major improvements are capitalized. Upon retirement, sale or other disposition of capital assets, the cost and accumulated depreciation are eliminated from the accounts and gain or loss is included in the consolidated statement of revenues and expenses.

Notes to Consolidated Financial Statements

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Recently adopted accounting changes:

The District adopted GASB 87, “Leases”, as of July 1, 2022, whi ch requires lessees to recognize on the balance sheet right-of-use assets and lease li abilities for leases previously classified as operating leases under the previous authoritative standards and provides enhanced disclosures surrounding the leasing arrangements. The adoption of the new lease standard resulted in no changes as of July 1, 2022.

Note 2. Cash and Cash Equivalents

Cash and cash equivalents as of June 30, 2023 consisted of the following:

Petty cash 600 $
Cash on hand 36,308
Checking accounts 536,495
Savings account 9,794,908
10,368,311$

Note 3. Advance from City of Bakersfield
During the normal course of business, the City pays expenses that are allocated to the operation of the Facilities. These expenses include payroll and related expenses for the City employees and equipment rent. The amount of the advance fluctuates throughout the year depending on allocated monthly expenses and additional cash flow needs. The advance is an intercompany account that is eliminated in the consolidation for the preparation of the City's financial statements. The amount allocated by the City to the Facilities for the year ended June 30, 2023 was $1,009,458.

Note 4. Deferred Revenue
Deferred revenue at June 30, 2023 consists of the following:

Suite contracts 794,008 $
Naming rights 267,434
Sponsorship agreements 286,963
Ticket sale and rebates 5,696,933
Event deposits 198,132
7,243,470$

Notes to Consolidated Financial Statements

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Note 5. Administrative Services Agreements
ASM provides administrative services to the City for the Facilities. Compensation for these services is a base fee of $400,000 for the first year, paid in equal monthly installments. The base fee will be adjusted annually (up or down) by the Consumer Price Index, but in no event will any increase or decrease exceed three percent. For the year ended June 30, 2023, ASM received $489,452 in total management fees from the City for the three respective facilities.

In addition to the base fee, ASM receives an incentive equal to a percentage of the difference between the actual net operating profit or net operating loss for each facility and a benchmark. ASM receives an incentive of: 1) 25% of the difference between the actual net operating profit and a $332,575 loss realized by the Arena, Theater and Convention Center; 2) 50% of the difference between the actual net operating profit (loss) and a $20,785 loss realized by the Ice Center and 3) 50% of the difference between the actual net operating profit (loss) and a $62,358 loss realized by the Amphitheater. By agreement the incentive fee was $319,151 for the year ended June 30, 2023.

The management agreement also includes a net loss guarantee where if the net operating loss in any given fiscal year for all of the Facilities taken in the aggregate exceeds a base amount of $415,718, ASM will reimburse the Facilities in the amount the net operating loss exceeds $415,718. The Facilities generated a net operating profit in the current year, as such no reimbursement was necessary in the current year.

Per the management agreement, ASM made a one-time contribution of $250,000, from its own monies, to an event development account and was to be utilized for future events. In the event of early termination, ASM is authorized to withdraw any amounts remaining in the event development account as of the date of the early termination. The Facilities used the contribution during the year ended June 30, 2021. During the year ended June 30, 2022, ASM agreed to restore this reserve by taking a charge against current operations. This amount may be used upon mutual consent of the City and ASM.

Note 6. Commitments
The Facilities have entered into various long-term contracts and leases. At June 30, 2023, outstanding commitments consist of the following:

Naming rights:

The City and ASM have entered into licensing and naming rights agreements with Mechanics Bank, Valley Children’s Healthcare (VCH), and Dignity Health for the exclusive naming rights of the Facilities. The agreements call for the City and ASM to use reasonable efforts to identify the Arena as the “Mechanics Bank Arena, Theater, Convention Center”, the Ice Center as the “Valley Children’s Ice Center of Bakersfield” and the Amphitheatre as the “Dignity Health Amphitheatre” in all official documents, press releases, advertising, announcements, answering of telephones, as well as all promotion and print material produced or disseminated by or for the account of the Facilities.

Notes to Consolidated Financial Statements

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During the year ended June 30, 2023, total revenue earned from these agreements amounted to $447,000. The naming rights for the Arena terminate in January, 2025, naming rights for the Ice Center terminate in May, 2028, and naming rights for the Amphitheatre terminate in December, 2027,
Ticket sales:

The City and ASM have entered into a licensed user agreement with Outbox AXS, LLC (AXS), a related party to ASM through common ownership, to be the exclusive provider for ticket sales for any event presented at the Facilities. Under the agreement, AXS has the authority to act as an agent for the Facilities for ticket sales to the general public by any and all means including telephone and internet. AXS earns fees from the ticket sales such as inside ticket charges, customer convenience charges, credit card charges, handling charges and ticket sale royalties. AXS collects these fees as tickets are sold and the net amount is remitted to the Facilities weekly. This agreement began in July 2015 and is effective through the date which the ASM management agreement expires.

ARAMARK
The Facilities is currently operating under a contract with ARAMARK to operate concession and catering services for the Arena, Theater and Convention Center (the Facilities), effective through June 30, 2023. On mutual agreement between both parties, the term was extended one five-year period to June 30, 2028.

The Facilities is entitled to receive 35% of the first $500,000 in gross concession receipts and 40% of receipts in excess of $500,000 but less than $2,000,000 and 45% of any amount exceeding $2,000,000 annually. For the year ended June 30, 2023, the Facilities received $1,747,023 in gross concession and catering receipts from ARAMARK.

Hockey lease:

The City and ASM have entered into a lease agreement, which has been assigned to KG Oilers Corporation, for exclusive use of the Facilities for East Coast Hockey League (ECHL) games. KG Oilers Corporation has agreed to pay $3,500 for each preseason home game played, $6,525 for each regular season home game played and $1,525 for each post season home game played. The fees will be subject to change at two-year intervals beginning on February 1, 2016. The change in payment will be based on the changes in the Consumer Price Index. During the year ended June 30, 2023, fees under this agreement were $4,271 for each preseason home game, $7,962 for each regular season home game and $1,860 for each post season home game played. The Hockey lease was renewed through 2027.

The KG Oiler Corp. (Tenant) receives $5,370 per luxury suite leased by the Arena or $145,000 if all twenty-seven suites are leased. In addition to the suite payment, on suite leases sold or renewed after the effective date, an advertising and promotional inventory package will be included that will be provided by the Tenant as part of each new sale or renewal of a suite lease.

Notes to Consolidated Financial Statements

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The suite lease pricing will be adjusted to incorporate the fair market value of the advertising and promotional inventory, which will be estimated to be 10% of the new suite lease price. Tenant will receive the entire amount of the portion of the advertising and promotional inventory package for each new sale or renewal of the suite lease after the effective date. In no case will Tenant receive a sum less than $6,500 when combining the suite lease payment and suite advertising package payment for each suite lease sold or renewed after the effective date.

The $6,500 threshold will be subject to change at two-year intervals beginning February 1, 2016. The change in payment is to be based on the changes in the Consumer Price Index.

Fees are to remain unchanged. For the year ended June 30, 2023, KG Oiler Corp. received $157,398 for the suites leased.

Concession and catering services:

The City and ASM has entered into an agreement with Keith Barnes dba KB Concessions to provide concession and catering services for the Ice Center. The Facilities will receive 15% of gross concession receipts received from non-vending machine sales and 10% of gross concession receipts received from vending machine sales throughout the term of the new contract. This agreement is effective through September 6, 2021, with renewal currently in progress with the City. For the year ended June 30, 2023, the Facilities received $8,333 in concession commissions from KB Concessions.

Note 7. Insurance
The Facility has insurance coverage for general liability, auto, crime and workers’ compensation. The general liability insurance has no retention level per occurrence with the maximum amount of coverage being $3,000,000. Workers compensation insurance has no retention level per occurrence with the combined maximum amount of coverage being $1,000,000. The auto liability insurance has no retention level per accident with the maximum amount of coverage being $1,000,000. The crime insurance has a $1,000,000 retention level with the maximum amount of coverage being $5,000,000. The Facility also has an umbrella policy, which has no retention level and with a maximum amount of coverage of $25,000,000. All buildings are covered under the City’s insurance as the City owns all structures within the Facilities.

Note 8. Subsequent Events

The Facilities has evaluated events and transactions subsequent to June 30, 2023, through the date of the independent auditor’s report, noting no significant events that require disclosure in the consolidated financial statements.

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Mechanics Bank Arena, Theater, Convention Center,
Valley Children's Ice Center of Bakersfield
and Dignity Health Amphitheatre
Consolidated Schedule of Operating Expenses
For the Year Ended June 30, 2023
Utilities 1,311,397 $
Salaries and wages 1,274,893
Management fees 489,452
Employee benefits 446,018
Program expenses 346,482
Insurance 225,508
Equipment rental 199,388
Supplies 175,565
Payroll taxes 153,985
Computer expenses 153,851
Professional fees 53,473
Bank fees 45,699
Miscellaneous 44,008
Office supplies 22,198
Meals and entertainment 20,474
Dues and subscriptions 19,019
Telephone 18,054
Security 16,428
Training 13,849
Repairs and maintenance 10,457
Marketing 6,991
Travel 5,834
Postage 4,829
Uniforms 1,684
5,059,536$

CITY OF BAKERSFIELD, CALIFORNIA

SINGLE AUDIT REPORTS

FOR THE YEAR ENDED JUNE 30, 2023

CITY OF BAKERSFIELD, CALIFORNIA

SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF CONTENTS

Page

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

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

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

Notes to Schedule of Expenditures of Federal Awards ..................................................................... 7

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

1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

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

We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bakersfield, California (the City), as of and for t he year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 26, 2024.

Report on Internal Control Over Financial Reporting

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

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

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

2 Report on Compliance and Other Matters

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

Purpose of this Report

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

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 26, 2024

3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

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

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program

We have audited the City of Bakersfield’s (the City) compliance with the types of compliance requirements identified as subject to audit in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the Ci ty’s major federal programs for the year ended June 30, 2023. The City’s major fed eral programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs identified in the summary of auditor’s results section of the a ccompanying schedule of findings and questioned costs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program

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

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

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

Responsibilities of Management for Compliance

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

4 Auditor’s Responsibilities for the Audit of Compliance

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

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

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

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

Report on Internal Control over Compliance

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

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

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

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

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

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate rema ining fund information of the City, as of and for the year ended June 30, 2023, and the related notes to the financial statements, wh ich collectively comprise the City’s basic financial statements. We issued our report thereon dated Decemb er 26, 2024, which contained unmodified opinions on those financial statements. Our audit wa s conducted for the purpose of forming opinions on the financial statement s that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is pres ented for purposes of additional analysis as required by the Uniform Guidance and is not a requi red part of the basic financial statements.

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

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 26, 2024

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

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023

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

Direct Programs:

Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 9,838,457$ Emergency Shelter Grant Program 14.231 N/A - 1,651,211 Housing Opportunities for Persons with AIDS 14.241 N/A - 919,303 Home Investment Partnerships Program 14.239 N/A - 194,424 Total U.S. Department of Housing and Urban Development - 12,603,395 U.S. Department of Justice:

Direct Program:

Public Safety Partnership and Community Policing 16.922 N/A - 225,689 Total U.S. Department of Justice - 225,689 U.S. Department of Transportation:

Direct Program:

Airport Improvement Program 21.106 N/A - 230,603 Passed through California Office of Traffic Safety:

State and Community Highway Safety 20.600 PT1478 - 394,544 Passed through California Department of Transportation:

Highway Planning and Construction Grants:

Surface Transportation Program 20.205 STPL-5109 - 4,955,980 Transportation Equity Act 20.205 HTP2IL-5109; PRNS-5109; and NCIIP-5109 - 14,610,022
State Highway Operation and Protection Program (SHOPP) 20.205 ACN HP-P099(591) - 1,806 Highway Bridge Replacement 20.205 BRLSZD-5109 (046) - 622,450 Congestion Mitigation and Air Quality Program 20.205 CML-5109 - 1,061,549 Subtotal - Highway Planning and Construction Grants - 21,251,807 Total U.S. Department of Transportation - 21,876,954 U.S. Department of Treasury
Direct Programs:

Equitable Sharing Program 21.016 N/A - 1,660 COVID-19: Coronavirus State and Local Fiscal Recovery Funds 21.0 27 N/A 6,573,694 30,075,531 Total U.S. Department of Treasury 6,573,694 30,077,191 U.S. Department of Homeland Security:

Passed through California Emergency Management Agency:

Disaster Grants - Public Assistance FEMA-4305-DR-CA;

97.036 Cal OES ID:087-91052 - 547,200 Total U.S. Department of Homeland Security - 547,200 Total Expenditures of Federal Awards, Excluding Beginning Loan Balances 6,573,694 $ 65,330,429 $ U.S. Department of Housing and Urban Development:

Direct Programs:

Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 10,756$ Home Investment Partnerships Program 14.239 N/A - 16,637,084 Total Beginning Federal Loan Balances with Continuing Compliance Requirements - 16,647,840 Total Expenditures of Federal Awards, Including Beginning Loan Balances 6,573,694 $ 81,978,269 $ Beginning Federal Loan Balances with Continuing Compliance Requirements

7 CITY OF BAKERSFIELD, CALIFORNIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2023

NOTE 1 – GENERAL

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

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

NOTE 2 – BASIS OF ACCOUNTING

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

NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS

Amounts reported in the accompanying schedule on pages 9-12 agr ee with the amounts reported in the related periodic Federal financial reports.

NOTE 4 – INDIRECT COST RATE

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

NOTE 5 – LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS

Outstanding federally-funded program loans with a continuing co mpliance requirements had the following balances and activities for the year ended June 30, 2023:

Assistance Balance Balance
Listing Number Program Title June 30, 2022 Increase Decrease June 30 , 2023

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

14.239 Home Investment Partnerships Program 16,723,309 - 86,225 16,637,084 Total 16,734,065$ - $ 86,225$ 16,647,840$

8 NOTE 6 – AMOUNT PROVIDED TO SUBRECIPIENTS

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

Assistance Amount
FEDERAL GRANTOR OR Listing Contract or Provided to
Pass-Through Grantor Federal Program Number Subrecipient Program Nu mber Subrecipients United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Housing Authority of Kern County 2021-041 6,019,983 $ United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Habitat for Humanity 2023-006 37,348 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Radio Sandwich 2022-246 55,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 San Joaquin Hospital 2022-189 205,500 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Boys and Girls Club 2022-245 80,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Guthrie's Alley Cat ED22-050 11,030 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 San Joaquin Tractor 2022-273 38,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 My Spot Downtown Grill ED23- 005 25,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Oleander and Palm ED23-010 5,000 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 El Alamo Properties ED23-003 23,500 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Downtown Business Assoc 2022-244 38,333 United States Department
of Treasury
Coronavirus State and Local
Fiscal Recovery Funds 21.027 Garrisons 2022-210 35,000
6,573,694$

9 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS

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

U.S. Department of Housing and
Urban Development
Community Housing
Development Emergency Opportunities for Home Airport State and Highwa y Block Grants Shelter Persons Investment Improvement Community Planning and - Entitlement Grants Grant with AI DS Partnerships Program Highway Sa fety Construction Federal Financial
Assistance Recognized 5,390,260$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Total 5,390,260 $ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $

Reimbursable
Disbursement/Expenditure 9,838,457$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Total Reimbursable
Disbursement/Expenditure 9,838,457$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Unpaid Billings as of June 30, 2023 - $ - $ - $ - $ - $ - $ (5,689,299)$ Due from State/Local Governments - - - - - - - Accrued Revenue June 30, 2023 1,233,896 390,769 180,296 - - - 5,689,299 Due from Other Governmental Agencies 1,233,896$ 390,769 $ 180,296 $ - $ - $ - $ - $ (Continued)
U.S. Department of Transportation
Federal Grantor/Program Title

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

U.S. Department of U.S. Department
Disaster Equitable Coronavirus Equitable
Grants Public Sharing State & Local Fiscal Sharing
Assistance Program Recovery Fund Program
Federal Financial
Assistance Recognized 547,200$ 1,660 $ 30,075,531$ 225,689 $ Total 547,200 $ 1,660 $ 30,075,531$ 225,689 $ Reimbursable
Disbursement/Expenditure 547,200$ 1,660 $ 30,075,531$ 225,689 $ Total Reimbursable
Disbursement/Expenditure 547,200$ 1,660 $ 30,075,531$ 225,689 $ Unpaid Billings as of June 30, 2023 - $ - $ - $ - $ Due from State/Local Governments - - - - Accrued Revenue June 30, 2023 - - - - Due from Other Governmental Agencies - $ - $ - $ - $ Homeland Security
Federal Grantor/Program Title
U.S. Department of Treasury of Justice

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

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

Community Housing
Development Emergency Opportunities for Home Airport State and Highwa y Block Grants Shelter Persons Investment Improvement Community Planning and - Entitlement Grants Grant with AID S Partnerships Program Highway Sa fety Construction Federal Financial
Assistance Recognized 5,390,260$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Total 5,390,260 $ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $

Total Disbursement/Expenditure 9,838,457$ 1,651,211 $ 919,303 $ 194,424 $ 230,603 $ 394,544 $ 21,251,807 $ Variance of Revenues Recognized
Over/(Under) Expenditures (4,448,197) - - - - - - Program Income Used (4,448,197) - - - - - - Total - $ - $ - $ - $ - $ - $ - $ (Continued)
U.S. Department of TransportationUrban Development
Federal Grantor/Program Title
U.S. Department of Housing and

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

U.S. Department of U.S. Department
Disaster Equitable Coronavirus Equitable
Grants Public Sharing State & Local Fiscal Sharing
Assistance Program Recovery Fund Program
Federal Financial
Assistance Recognized 547,200$ 1,660 $ 30,075,531$ 225,689 $ Total 547,200 $ 1,660 $ 30,075,531$ 225,689 $ Total Disbursement/Expenditure 547,200$ 1,660 $ 30,075,531$ 225,689 $ Variance of Revenues Recognized
Over/(Under) Expenditures - - - - Program Income Used - - - - Total - $ - $ - $ - $ of JusticeHomeland Security U.S . Department of Treasury Federal Grantor/Program Title

13 CITY OF BAKERSFIELD, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
JUNE 30, 2023

SECTION I – SUMMARY OF AUDITOR’S RESULTS

Financial Statements:

Type of auditor's report issued Unmodified

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

Noncompliance material to financial statements noted? yes x no

Federal Awards:

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

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

Any audit findings disclosed that are required to be

reported in accordance with the Uniform Guidance, under 2 CFR §200.516? yes x no

Identification of major programs:

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

14.218

14.239

21.027

Community Development Block Grants - Entitlement Grants

Home Investment Partnerships Program

COVID-19: Coronavirus State and Local Fiscal Recovery Funds

Dollar threshold used to distinguish between Type A
and Type B programs: $2,459,348

Auditee qualified as low-risk auditee? yes x no

SECTION II – FINDINGS RELATING TO FINANCIAL STATEMENTS REQUIRED UNDER

GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS (GAGAS)

None.

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

None.

SECTION IV – STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

No findings in prior year

ADMINISTRATIVE REPORT

MEETING DATE: January 22, 2025 AGENDA CATEGORY: Consent Calendar Public Hearings TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 15, 2025
SUBJECT: Public Hearing to consider HUD Substantial Action Plan Amendment No. 5 FY 2023-2024 to add Niles Street Project (Ward 2).

FY 23-24 Amendment No. 5: Add Niles Street Affordable Housing as a project to FY 23-24 Action Plan.

New Construction Assistance, transfer funds from New Construction Assistance FY 23-24 ($1,358,955 HOME) to Niles Street Affordable Housing.

RECOMMENDATION:

Staff recommends open the public hearing and then close the hearing, but take no action.

BACKGROUND:

On November 25, 2024, City staff issued a public notice for an Action Plan Amendment creating the Niles Street Affordable Housing Project in the HUD Action Plan. After posting, staff identified that the notice had incorrectly referenced the Action Plan Year and funding sources and requests no action be taken on this item.

Staff released the accurate public notice on December 20, 2024 for the Niles Street Project, as a separate action at this meeting.

FISCAL IMPACT:

The approval of the amendment to the Action Plan will not spend any general funds, as all of the funding for these projects are using the HUD funding and not General Funds.

COUNCIL GOAL:

Safety and Resilience

ATTACHMENT:

FY 23-24 Public Notice and Substantial Amendment No. 5

Page | 1

PUBLIC NOTICE

City of Bakersfield HUD Action Plan Amendment: Amendment No. 5 (FY23/24), Notice of 30-day Review Period and Public Hearing

This Public Notice is for residents of the City of Bakersfield (City) to have the opportunity to comment on the following HUD Action Plan amendment: Amendment No. 5 (FY23/24).

In compliance with 24 CFR Part 91.505 – the City is required to publicly notice an amendment when a HUD funded project is created, canceled , a substantial change in funding is proposed, or an existing project has substantially changed in purpose or scope. Community members have until January 22, 2025 to provide the City with any written comments regarding the proposed amendments. Written comments can be submitted to Rogelio Martinez, Economic and Community Development Planner II, Economic and Community Development at 1600 Truxtun Avenue, 3 rd floor, Bakersfield CA 93301, or by email at [email protected]. Additionally, community members may submit comments to the amendment via email to the City Clerk at [email protected] no later than 1:00 p.m. on the day of the City Council meeting . Please clearly indicate which agenda i tem number your comment pertains to. On or about January 23, 2025, the City will submit the amendment to the Federal Department of Housing and Urban Development notifying them of the adopted changes.

The public hearing is currently scheduled for:

Location: City of Bakersfield Council Chambers
1501 Truxtun Avenue
Bakersfield, California 93301
Date: January 22, 2025
Time: 5:15 P.M. or thereafter

The public may participate in each meeting and address the City Council as follows:

The City Council Chamber is accessible to persons with disabilities. Disabled individuals who need special assistance to attend or participate in a meeting of the City Council may request assistance at the City Clerk’s Office, City Hall North, 1600 Truxtun Avenue, Bakersfield, California, 93301 or by calling (661) 326-3767. For TTY services please call California Relay Services at 711. Every effort will be made to reasonably accommodate individuals with disabilities and individuals who speak a language other than English, by making meeting materials available in alternative formats. Requests for assistance should be made five (5) working days in advance to the City Clerk’s Office, at (661) 326- 3767. For TTY services please call California Relay Services at 711.

Summary of Action Plan Amendments

AMENDMENT NO. 5 FY 23/24 ACTION PLAN – M-23-MC-06-0503

Project Title & Description
Project ID
Activity Code/
Citations/Nat./Obj.

Budgeted
Amount of
Funds
Budget
Changes
Revised Total
Funding

INCREASE

Niles Street Affordable Housing
The Housing Authority of the County of
Kern to develop fifty-one (51) units of
affordable housing for low-income
households.

12 Construction of
Housing

92.205(a)(1)

+$1,358,955.00 $1,358,955.00

REDUCE

New Construction Assistance FY 23-24
Provide funding for housing development
costs associated with the acquisition and/or
construction of affordability.
12 Construction of
Housing

92.205(a)(1)
$1,370,955.00 -$1,358,955.00 $12,000.00

Página | 1

AVISO PÚBLICO

Enmienda al Plan de Acción de HUD de la Ciudad de Bakersfield: Enmienda No. 5 (FY23/24), Aviso de Período de Revisión de 30 días y Audiencia Pública

Este Aviso Público es para que los residentes de la Ciudad de Bakersfield (Ciudad) tengan la oportunidad de comentar sobre la siguiente enmienda al Plan de Acción de HUD: Enmienda No. 5 (FY23/24).

De conformidad con 24 CFR Parte 91.505, la Ciudad está obligada a notificar públicamente una enmienda cuando se crea, cancela un proyecto financiado por HUD, se propone un cambio sustancial en el financiamiento o un proyecto existente ha cambiado sustancialmente en propósito o alcance. Los miembros de la comunidad tienen hasta el 22 de enero de 2025 para proporcionar a la Ciudad cualquier comentario por escrito con respecto a las enmiendas propuestas. Los comentarios por escrito pueden enviarse a Rogelio Ma rtínez, Planificador de Desarrollo Económico y Comunitario II, Desarrollo Económico y Comunitario en 1600 Truxtun Avenue, 3er piso, Bakersfield CA 93301, o por correo electrónico a [email protected]. Además, los miembros de la comunidad pueden enviar comentarios a la enmienda por correo electrónico al Secretario de la Ciudad en [email protected] a más tardar a la 1:00 p.m. el día de la reunión del Concejo Municipal.

Sírvase indicar claramente a qué número de punto del orden del día se refiere su observación. El 23 de enero de 2025 o alrededor de esa fecha, la Ciudad presentará la enmienda al Departamento Federal de Vivienda y Desarrollo Urbano para notificarles los cambios adoptados.

La audiencia pública está programada para los siguientes eventos:

Ubicación: Cámaras del Consejo de la Ciudad de Bakersfield 1501 Avenida Truxtun
Bakersfield, California 93301
Fecha: 22 de enero de 2025
Hora: 5:15 p.m. o después

El público puede participar en cada reunión y dirigirse al Concejo Municipal de la siguiente manera:

La Cámara del Ayuntamiento es accesible para personas con discapacidad. Las personas discapacitadas que necesiten asistencia especial para asistir o participar en una reunión del Concejo Municipal pueden solicitar asistencia en la Oficina del Secretario de la Ciudad, City Hall North, 1600 Truxtun Avenue, Bakersfield, California, 93301 o llamando al (661) 326-3767. Para servicios TTY, llame a California Relay Services al 711 . Se hará todo lo posible para acomodar razonablemente a las personas con discapacidades y a las personas que hablan un idioma distinto al inglés, haciendo que los materiales de la reunión estén disponibles en formatos alternativos. Las solicitudes de asistencia deben hacerse con cinco (5) días hábiles de anticipación a la Oficina del Secretario de la Ciudad, al (661) 326- 3767. Para servicios TTY, llame a California Relay Services al 711.

Resumen de las enmiendas al plan de acción

ENMIENDA NO. 5 PLAN DE ACCIÓN PARA EL AÑO FISCAL 23/24 – M-23-MC-06-0503

Título y descripción del proyecto
ID del proyecto
Código de
actividad/
Citas/Nat./Obj.

Presupuestado
Monto de los
fondos
Cambios en el
presupuesto
Total
revisado
Financiación

AUMENTAR

Vivienda asequible de Niles Street
La Autoridad de Vivienda del Condado
de Kern para desarrollar cincuenta y una
(51) unidades de vivienda asequible para
hogares de bajos ingresos.

12 Construcción de
Viviendas

92.205(a)(1)

+$1,358,955.00 $1,358,955.00

REDUCIR

Asistencia para Nuevas Construcciones
Año Fiscal 23-24
Proporcionar fondos para los costos de
desarrollo de viviendas asociados con la
adquisición y/o construcción de
asequibilidad.
12 Construcción de
Viviendas

92.205(a)(1)
$1,370,955.00 -$1,358,955.00 $12,000.00

ADMINISTRATIVE REPORT

MEETING DATE: January 22, 2025 AGENDA CATEGORY: CONSENT CALENDAR PUBLIC HEARINGS TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 15, 2025
SUBJECT: Public Hearing to consider HUD Substantial Action Plan Amendment No. 3 FY 2024-25 to add the Niles Street Project (Ward 2)

FY 24-25 Amendment No. 3: Add Niles Street Affordable Housing as a project to New Construction Assistance, transfer funds from New Construction Assistance FY 24-25 ($619,066.19 HOME), New Construction Assistance FY 2023-24 ($399,259.86 HOME), Program Income FY 23-24 ($166,746.95 HOME), and New Construction Assistance FY 2022-23 ($214,187 HOME) to Niles Street Affordable Housing ($1,399,260 HOME).

RECOMMENDATION:

Staff recommends approval of the Action Plan Amendment.

BACKGROUND:

HUD Action Plan:

The City receives funding from the U.S. Department of Housing and Urban Development (HUD) annually through the submission of an Action Plan, which describes all HUD-funded projects and activities for a particular fiscal year. The Action Plan identifies projects and activities to be undertaken with HUD funds and how they meet community housing, homelessness, and community and economic development needs. Significant changes to an Action Plan require staff to process a Substantial Amendment. Staff is proposing a Substantial Amendment for the HOME Investment Partnership Program (HOME) fund, which is part of the City’s annual HUD Action Plan.

The City of Bakersfield receives an annual entitlement of HOME funds to invest in quality, affordable housing for low-income residents. During the Action Plan process, the City committed to assisting one new construction project.

On November 3, 2023, the City released the FY 2024-25 Funding Handbook and received one proposal from the Housing Authority of the County of Kern, requesting HOME funds to develop fifty-one (51) units of affordable housing for low-income households. At this time, staff proposes to add the Niles Street project to the 2024-25 Action Plan as a New Construction Assistance project and transfer funds from New Construction Assistance FY 24-25 ($619,066.19 HOME), New Construction Assistance FY 2023- 24 ($399,259.86 HOME), Program Income FY 23-24 ($166,746.95 HOME), and New Construction Assistance FY 2022-23 ($214,187 HOME) to Niles Street Affordable Housing ($1,399,260 HOME). The project site is Assessor Parcel Number 132-010-29 and is generally located on the north side of Niles Street between Brentwood Drive and Park Drive.

Public Notice:

A public notice for this action was published in English in the Bakersfield Californian, and in Spanish in El Popular on December 20, 2024, initiating a 30-day public comment period and providing 30-day notice of the public hearing. As of January 15, 2025, no comments were received.

Staff concludes that the proposed Action Plan Amendment meets all regulatory requirements and recommends Council approve the Amendment. If approved, staff will amend the Action Plan to incorporate the Niles Street Affordable Housing project.

FISCAL IMPACT:

The proposed changes to the City HUD Action Plan and the allocation of these funds will have no impact on the City General Fund, as the City participation in funding this Project is only using HUD funds.

COUNCIL GOAL:

Safety and Resilience
Economic Opportunity for All

WARD: 2

ATTACHMENTS:

Substantial Amendment No. 3 to HUD FY 2024-2025 Action Plan Public Notice

Page | 1

PUBLIC NOTICE

City of Bakersfield HUD Action Plan Amendment: Amendment No. 3 (FY24/25), Notice of 30-day Review Period and Public Hearing

This Public Notice is for residents of the City of Bakersfield (City) to have the opportunity to comment on the following HUD Action Plan amendment: Amendment No. 3 (FY24/25).

The public hearing is currently scheduled for:

Location: City of Bakersfield Council Chambers
1501 Truxtun Avenue
Bakersfield, California 93301
Date: January 22, 2025
Time: 5:15 P.M. or thereafter

The public may participate in each meeting and address the City Council as follows:

Summary of Action Plan Amendments

AMENDMENT NO. 3 FY 24/25 ACTION PLAN – M-24-MC-06-0503

Project Title & Description
Project ID
Activity Code/
Citations/Nat./Obj.

Budgeted
Amount of
Funds
Budget
Changes
Revised Total
Funding

ADD/INCREASE

Niles Street Affordable Housing
The Housing Authority of the County of
Kern to develop fifty-one (51) units of
affordable housing for low-income
households.

12 Construction of
Housing

92.205(a)(1)

+$1,399,260.00 $1,399,260.00

REDUCE

New Construction Assistance FY 24-25
Provide funding for housing development
costs associated with the acquisition and/or
construction of affordability.
12 Construction of
Housing

92.205(a)(1)
$892,932.63 -$619,066.19 $273,866.44
New Construction Assistance FY 23-24
Provide funding for housing development
costs associated with the acquisition and/or
construction of affordability.
12 Construction of
Housing

92.205(a)(1)
$479,259.86 -$399,259.86 $0
Program Income FY 23-24
Rental assistance, security deposit
payments, and utility assistance made to
provide tenant-based rental assistance.
05S
Rental Housing
Subsidies

92.205(a)
$0 -$166,746.95 $0
New Construction Assistance FY 22-23
Provide funding for housing development
costs associated with the acquisition and/or
construction of affordability.
12 Construction of
Housing

92.205(a)(1)
$302,046.00 -$214,187.00 $7,859.00

Página | 1

AVISO PÚBLICO

Enmienda al Plan de Acción de HUD de la Ciudad de Bakersfield: Enmienda No. 3 (FY24/25), Aviso de Período de Revisión de 30 días y Audiencia Pública

Este Aviso Público es para que los residentes de la Ciudad de Bakersfield (Ciudad) tengan la oportunidad de comentar sobre la siguiente enmienda al Plan de Acción de HUD: Enmienda No. 3 (FY24/25).

La audiencia pública está programada para los siguientes eventos:

Ubicación: Cámaras del Consejo de la Ciudad de Bakersfield 1501 Avenida Truxtun
Bakersfield, California 93301
Fecha: 22 de enero de 2025
Hora: 5:15 p.m. o después

El público puede participar en cada reunión y dirigirse al Concejo Municipal de la siguiente manera:

Resumen de las enmiendas al plan de acción

ENMIENDA NO. 3 PLAN DE ACCIÓN PARA EL AÑO FISCAL 24/25 – M-24-MC-06-0503

Título y descripción del proyecto
ID del proyecto
Código de
actividad/
Citas/Nat./Obj.

Presupuestado
Monto de los
fondos
Cambios en el
presupuesto
Total
revisado
Financiación

AGREGAR/AUMENTAR

Vivienda asequible de Niles Street
La Autoridad de Vivienda del Condado
de Kern para desarrollar cincuenta y una
(51) unidades de vivienda asequible para
hogares de bajos ingresos.

12 Construcción de
Viviendas

92.205(a)(1)

+$1,399,260.00 $1,399,260.00

REDUCIR

Asistencia para Nuevas Construcciones
Año Fiscal 24-25
Proporcionar fondos para los costos de
desarrollo de viviendas asociados con la
adquisición y/o construcción de
asequibilidad.
12 Construcción de
Viviendas

92.205(a)(1)
$892,932.63 -$619,066.19 $273,866.44
Asistencia para Nuevas Construcciones
Año Fiscal 23-24
Proporcionar fondos para los costos de
desarrollo de viviendas asociados con la
adquisición y/o construcción de
asequibilidad.
12 Construcción de
Viviendas

92.205(a)(1)
$479,259.86 -$399,259.86 $0
Ingresos del Programa Año Fiscal 23-24
Asistencia para el alquiler, pagos de
depósito de seguridad y asistencia con los
servicios públicos para proporcionar
asistencia para el alquiler basada en el
inquilino.

05S
Subsidios de
Alquiler de
Vivienda

92.205(a)
$0 -$166,746.95 $0
Asistencia para Nuevas Construcciones
Año Fiscal 22-23
Proporcionar fondos para los costos de
desarrollo de viviendas asociados con la
adquisición y/o construcción de
asequibilidad.
12 Construcción de
Viviendas

92.205(a)(1)
$302,046.00 -$214,187.00 $7,859.00

ADMINISTRATIVE REPORT

MEETING DATE: January 22, 2025 AGENDA CATEGORY: CONSENT - Resolutions TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 8, 2025
SUBJECT: Resolution Authorizing the City of Bakersfield's Application and Five-Year Plan Amendment for
Permanent Local Housing Allocation (PLHA) Program Funding in the amount of $5,581,895 and Five-Year Plan Amendment

RECOMMENDATION:

Staff recommends adoption of the resolution.

BACKGROUND:

In 2017, the California Legislature enacted the Building Homes and Jobs Act (SB 2), which established a $75 recording fee on all real estate documents, creating a permanent ongoing source of revenue for local governments to address the shortage of affordable housing in their communities. With this new revenue source, the Permanent Local Housing Allocation (PLHA) was established, providing up to $296 million in State funding for the development of new affordable multifamily rental housing and single- family homes.

On October 15, 2024, the State Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for the PLHA program, identifying entitlement awards for the City of Bakersfield and other eligible local jurisdictions. The City of Bakersfield is currently eligible to receive $5,581,895 in Permanent Local Housing Allocation Funding from CY 2021, CY 2022, and CY 2023 entitlements.

This resolution will allow the City of Bakersfield to apply for PLHA funding and amend the City of Bakersfield’s Five-Year PLHA spending plan to reallocate previously awarded PLHA funding to another eligible affordable housing activity under the PLHA program.

Sixty percent (60%) of this PLHA entitlement funding will be directed toward construction loans for the development of new multifamily rental housing reserved for households making no more than 60% of the local Area Median Income (AMI), and the remining forty percent (40%) will be directed toward the construction of new affordable single-family homes reserved for households making up to or below 120% AMI.

All affordable housing construction loans funded by the City of Bakersfield’s PLHA will be reinvested into the City of Bakersfield’s Affordable Housing Trust Fund (AHTF).

It is important to note that PLHA entitlement funding awards will not be disbursed to the City of Bakersfield by the HCD until the application is determined to have met all threshold requirements, including a compliant Housing Element that has been approved by HCD.

As of December 23, 2024, HCD has rejected the City of Bakersfield’s 6th Cycle (2023-2031) Revised Draft Housing Element and has requested substantial revisions to the Housing Element draft for the City to comply with State Housing Element Law.

No award will be made until deficiencies are addressed to the satisfaction of HCD. Once the Housing Element has been approved, City staff will submit any additional items State requires to obtain a complete PLHA application package if needed.

Staff is recommending adoption of this Resolution, authorizing the City to apply for PLHA funding and amend the City of Bakersfield’s Five-Year PLHA spending plan to increase the inventory of affordable multi-family housing developments and single-family homes within the City of Bakersfield.

FISCAL IMPACT:

No fiscal impact.

COUNCIL GOAL:

Safety and Resilience

ATTACHMENT:

Resolution

Page 1 of 3 ends

Bakersfield City CouncilJanuary 22, 2025

Bakersfield City Council
January 22, 2025