ACFR 2023 - Financial statements Final.pdf — Bakersfield City Council, January 22, 2025

CITY OF BAKERSFIELD

CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2023
Prepared by the Department of Finance
Randy McKeegan, Finance Director
On the Cover
Via Arte Festival
The Marketplace
Photo by Gilbert Vega

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents

INTRODUCTORY SECTION PAGE
Table of Contents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................i Letter of Transmittal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................iv GFOA Certificate of Achievement................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ix Organizational Chart................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................x Elected and Administrative Officers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................xi

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

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

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

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

Budgetary Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................108 Budgetary Comparison Schedule for the General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................109 Budgetary Comparison Schedule for the Transient Occupancy Taxes Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................110 Budgetary Comparison Schedule for the Community Development Block Grant Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................110 Budgetary Comparison Schedule for the Gas Tax & Road Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................111 Budgetary Comparison Schedule for the Redevelopment Successor Agency - Housing Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................111 Defined Pension Plan - Schedules of Changes in Net Pension Liability and Related Ratios & Schedules of Plan Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................113 Other Post-Employment Benefits (OPEB) Plan - Schedule of Changes in City's Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................119 i

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents
PAGE
Supplementary Information:

Balance Sheet - General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................125 Schedule of Revenues by Function - General Fund - Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................126 Schedule of Expenditures by Division - General Fund - Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................127 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Public Safety and Vital Services Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................128 Special Revenue Funds:

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................136 Capital Projects Funds:

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget & 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................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................147 Fiduciary Funds:

Combining Statement of Fiduciary Net Position - Custodial Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................149 Combining Statement of Fiduciary Net Position
-Private Purpose Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................150 Combining Statement of Fiduciary Net Position
-Pension & Other Employee Benefit Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................151 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................152 Combining Statement of Changes in Fiduciary Net Position -Private Purpose Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................153 Combining Statement of Changes in Fiduciary Net Position -Pension & Other Employee Benefit Trust Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................154 Long-term Debt Recorded in Private Purpose Trust Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................155 ii

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents
PAGE

STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................158 Changes in Net Position - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................160 Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................164 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................166 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................168 Principal Property Taxpayers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................169 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................170 Property Tax Rates/Direct and Overlapping Governments - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................172 Property Taxes Levies and Collections - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................174 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................175 Taxable Sales By Category Market Groups - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................176 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................178 Ratio of Outstanding Debt by Type - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................180 Direct and Overlapping Debt as of June 30, 2023................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................182 Computation of Legal Debt Margin................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................183 Pledged - Revenue Coverage - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................184 Demographic and Economic Statistics - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................185 Principal Employers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................186 Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................187 Property Value, Construction and Bank Deposits - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................189 Operating Indicators by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................191 Capital Asset Statistics by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................193 Schedule of Insurance in Force................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................195 iii
December 26, 2024
Honorable Mayor, City Council, City Manager and Citizens of Bakersfield:

The City of Bakersfield's (the “City”) Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2023 is now available for review and analysis. This document is required by City’s Municipal Code, which states that a complete financial statement and report be prepared at the end of each fiscal year (Section 2.08.020F). T he City’s Finance Department prepared the report and assumes responsibility for both the accuracy of the data, its completeness and the fairness of the presentation which includes all disclosures. Because the cost of fiscal internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. To the best my knowledge and belief, the enclosed data is accurate in all material aspects and is reported in a manner that presents fairly the financial position and results of operations of the City.

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

Brown Armstrong Accountancy Corporation, a firm of licensed certified public accountants, performed the annual independent audit. The goal of the audit was to provide reasonable assurance that the basic financial statements of the City are free of material misstatement. The independent auditor concluded, based upon the audit, that the City’s financial statements for the fiscal year ended June 30, 2023 are fairly stated in conformity with GAAP.

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

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

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and A nalysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Bakersfield’s MD&A c an be found immediately following the report of the independent auditors, beginning on page 5 of the financial section.
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GENERAL BACKGROUND
The City is located approximately one hundred miles north of Los Angeles in the southern San Joaquin Valley. The City is the County seat for the County of Kern and maintains an incorporated area of 151 square miles with an estimated population of 411,109 as of January 1, 2024. Bakersfield operates under the Council-Manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor and a seven-member Council. The City Council is responsible for passing the ordinances and operating resolutions, passing the annual budget, appointing commissions and committees, and hiring the City Manager, and City Attorney, as well as many other related duties.

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

MAJOR INITIATIVES
The City of Bakersfield recognized the severe impact of homelessness on the community and undertook several programs and projects designed to address the issues it creates. The landmark homeless project undertaken by the City is the Brundage Lane Navigation Center which opened early in October 2020 and is now providing bridge housing for over 300 unhoused individuals in the area. Last year the facility served more than 884 individuals and found permanent housing for 116 people. Since it opened, more than 1,300 unduplicated clients have stayed there and over 365 of those individuals have moved to permanent housing. In addition to this endeavor, the City has established rapid response teams in both the Development Services and Recreations and Parks departments to clean up homeless encampments and address other negative impacts caused by that population. The number of employees assigned to these important teams has increased each year since being established in 2019. The City also continues to fund private clean-up services in the Downtown and Old Town Kern areas of the City.

The City also continues to move forward with initiatives to improve financial infrastructure and long-term planning. In the current year, the City began the implementation phase to replace the current Enterprise Resource Planning (ERP) software. The existing legacy system was implemented in the mid-1990’s and has passed its useful life. Modern ERP systems would build more efficient operations across all City departments. The City Council has approved the funding for this project which is expected to be complete in the next 12 to 18 months.
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FACTORS AFFECTING FINANCIAL CONDITION
Local Economy and Local Budget Issues – F unds f rom the American Rescue Plan Act (ARPA) were awarded to the City in 2021 continue to provide benefits to the community. These funds have allowed local governments like Bakersfield to assist the community negatively impacted by the pandemic, fund economic redevelopment, and supplement City operations. The period of availability for ARPA d ollars continues into fiscal year 2024-25 so that stimulus has the potential to backfill some revenues for the City over the next three years.

Property tax revenues grew by 12% in fiscal year 2022-23 and are estimated to increase by an additional 7% in fiscal year 2023-24. These tax revenues face some uncertainty as higher interest rates over the last few years could lead to slower growth in the local housing market. In addition, the State and Federal government’s desire to reduce the economy’s reliance on fossil fuels can negatively impact the local job and housing markets. In 2018, the citizens of Bakersfield approved a new 1% transaction and use tax called the Public Safety and Vital Services ( PSVS) and this newer tax revenue stream has had tremendous positive impacts to the community by adding as estimated $100 million in revenue each year. The PSVS funds are budgeted and accounted for separately within a sub-fund of the General Fund and have a special oversight committee made up of nine City residents. It should be noted that the PSVS revenue stream is primarily earmarked for the fulfilling specific priorities highlighted when the measure was passed but the City Council can use portions of that sales tax revenue to address economic instability. Like the PSVS tax, the standard Bradley-Burns 1% sales tax has been a steady revenue source for the City and like the PSVS funds, with double digit growth over the last two years. That growth is expected to level off in the upcoming years though and both sales tax sources are expected to be basically flat, with little growth when compared to prior years.

The City Council adopted Resolution 91-19 on June 28, 2019 to create a more substantial reserve to help mitigate potential financial downturns as well as create potential avenues to address an increasing concern regarding the growing unfunded pension liabilities. This resolution created a five-year plan that would increase the General Fund reserve equal to two months of operational costs, increase the facility replacement reserve, and begin to fund a Section 115 Pension Rate Stabilization Fund. The positive sales tax revenue receipts from the last three years allowed the City to meet that planned two-month operational reserve, establishing the rainy-day reserve balance at the end of the 2022-23 fiscal year that currently sits at over $52 million. The Council continued to fund the City’s Other Post-Employment Benefits (OPEB) plan for retiree medical benefits, maintaining the City of Bakersfield’s position as one of the few entities in California that are making serious progress toward fully funding this long-term obligation.

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

6.8%. This action was required by the State system’s policy that is meant to smooth out the positive effects of the plan’s performance over the subsequent years, without which participants would see significant swings in contribution rates. CalPERS estimates the impact of the changes will still create some positive impacts on City pension costs. The loss experienced the very next year will actually generate more of a negative impact on pension costs than the prior year gain positively impacted costs, Analysis shows that the combined effect is an over $52 million net funding loss.

Accounting System and Internal Controls - The City's accounting system is organized and operated on a fund basis with each fund treated as a distinct self-balancing accounting entity. Various funds utilized by the City of Bakersfield are fully described in Note 1 of Notes to the Financial Statements. T he City's accounting records for general governmental operations are maintained on a modified accrual basis of accounting, whereby revenues are recognized when measurable and available and expenditures are recognized when materials and services are received. Accounting records for the enterprise and internal service funds are recorded on an accrual basis of accounting, whereby revenues are recognized when vi
earned and expenses are recognized when incurred.

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

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

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

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

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

OTHER INFORMATION
Independent Audit - T he City Charter requires an annual audit by independent certified public accountants. The accounting firm of Brown Armstrong Accountancy Corporation was selected by the City Council in 2023 to perform the audit for a two-year service contract.

Awards - T he Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bakersfield for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022, marking 42nd consecutive year Bakersfield has received the GFOA c ertificate. T he Certificate of Achievement is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

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

Additionally, the City received the Distinguished Budget Presentation Award for the fiscal year beginning vii
July 1, 2023 from the GFOA. The Distinguished Budget Presentation Award judges a government's budget document for compliance with the guidelines established by the National Advisory Council on State and Local Budgeting and best practices of the GFOA.

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

Respectfully,
Randy McKeegan
Finance Director
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CITY OF BAKERSFIELD
June 30, 2023
City Council
Karen K. Goh .....................................................................................................................Mayor Eric Arias ........................................................................................................Member/Ward 1 Andrae Gonzales ..............................................................................................Vice Mayor/Ward 2 Ken Weir ............................................................................................................Member/Ward 3 Bob Smith ........................................................................................................... Member/Ward 4 Bruce Freeman ...................................................................................................Member/Ward 5 Patty Gray ..........................................................................................................Member/Ward 6 Manpreet Kaur ......................................................................................................Member/Ward 7 Administrative Personnel
Christian Clegg........................................................................................................City Manager Virginia Gennaro ....................................................................................................City Attorney Phil Burns.................................................................................... Development Services Director Jennifer Beyers..................................................Economic & Community Development Director Randy McKeegan .............................................................................................Finance Director John Frando.................................................................................................................Fire Chief Christi Tenter ....................................................................................Human Resources Director Greg Terry ..............................................................................................................Police Chief Zachary Meyer......................................................................................... Public Works Director Rick Anthony ..................................................................................Recreation & Parks Director Greg Pronovost.............................................................................Technology Services Director Kristina Budak ....................................................................................Water Resources Manager xi

1 INDEPENDENT AUDITOR’S REPORT

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

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund i nformation of the City of Bakersfield, California (the City), as of and for the year ended June 30, 20 23, and the related notes to the financial statements, which collectively comprise the City’s basic financ ial statements as listed in the table of contents.

In our opinion, the financial statements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, t he business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flow s thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards ge nerally 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.

Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Aud it of the Financial Statements section of our report. We are required to be independent of the City and to me et our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presenta tion of the financial statements in accordance with accounting prin ciples generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control rel evant to the preparation and fair presentation of financial statem ents that are free from materia l misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou bt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

2 Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in acc ordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal cont rol. Misstatements are considered material if there is a substantial likelihood that, individually or in t he aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

• Exercise professional judgment and maintain professional skept icism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures respons ive to those risks. Such procedures include examining, on a test basis, evidence regardi ng the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the au dit in order to design audit procedures that are appropriate in the circumstances, but not f or the purpose of expressing an opinion on the effectiveness of the City’s internal control. Ac cordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and t he reasonableness of significant accounting estimates made by management, as well as evaluate th e overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or eve nts, considered in the aggregate, that raise substantial doubt about the City’s ability to contin ue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis and budgetary comparison information on pages 5-21 and 108-112, respectively, the Defined Pension Plan – Schedules of Changes in the Net Pens ion Liability and Related Ratios and the Schedule of Plan Contributions on pages 113-118, and the Ot her Postemployment Benefits (OPEB) Plan Schedule of Changes in the City’s Net OPEB Liability and R elated Ratios as well as its Schedule of OPEB Contributions on pages 119-1 20 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing stan dards generally accepted in the United States of America, which consisted of inquiries of management about the methods of prepa ring 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 f inancial 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.

3 Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanyin g combining and individual nonmajor fund financial statements and the schedule of long-term debt re c o r d e d i n p r i v a t e p u r p o s e t r u s t a r e presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was 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 basic financial statements and certain additional procedures, including comparing and reconcil ing such information directly to the underlying accounting and other records used to prepare the bas ic financial statements or to the basic financial statements themselves, and other additional procedure s in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of long-term debt re corded in private purpose trust are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory sectio n and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not ex press an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exist s between the other information and the basic financial statements, or t he other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected ma terial misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 26, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contra cts, and grant agreements and other matters. The purpose of that report is solely to describe the s cope of our testing of internal control over financial reporting and compliance and the results of that test ing, and not to provide an opinion on the effectiveness of the City’s internal control over financial rep orting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

BROWN ARMSTRONG

ACCOUNTANCY CORPORATION

Bakersfield, California
December 26, 2024
4 CITY OF BAKERSFIELD
Management's Discussion and Analysis
This discussion and analysis of the City of Bakersfield’s (City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with the accompanying letter of transmittal, the basic financial statements, and the accompanying notes to those financial statements.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $2.3 billion (net position).  The City’s total net position increased by $84.3 million over the prior fiscal year. This increase is broken down with changes to the following components of net position; a $178 thousand decrease in restricted net position, a $56.8 million increase i n unrestricted net position, and a $27.9 million decrease in capital assets investment. Prior year information presented in this section does not take into account potential restatements made to the prior fiscal year balances for prior period adjustments (though there were no material restatements to report).  As of the close of the current fiscal year, the City's Governmental Funds reported combined ending fund balances of $380.8 million, an increase o f $35.4 million in comparison with the prior year. Amounts available for spending include restricted, committed, assigned and unassigned fund balances. Of this amount, $25.5 million is restricted by law or externally imposed requirements, $197.1 million is committed for specific purposes, $132.2 million assigned and $25.0 is unassigned and available for appropriations.  Total available fund balance for the General Fund increased $23.9 million to $152.3 million, which equates to 48.5% of total General Fund expenditures for the year.
 The City's long-term debt showed a decrease of $11.1 million during the current fiscal year.

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

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

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

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

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

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

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

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

The City's Water, Wastewater, and Refuse Collection systems. In addition, the operations of the City's Municipal Airport and Offstreet Parking activities are reported in this category.

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

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

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

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

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

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

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

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

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

This information can be found starting on page 108 of this report. 7 CITY OF BAKERSFIELD
Management's Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As previously noted, net position may serve over time as a useful indicator of a government’s financial position. In the current year, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.2 billion at the close of the reporting period, which is a $84.3 million increase in comparison with the prior year (after restatements).

The largest portion of the City’s net position relates to its net investment in capital assets of $2.2 billion (e.g., land, buildings, machinery, infrastructure and equipment), less any related debt used to acquire those assets that is still outstanding. T hese capital assets are used to provide services to citizens; as such, the assets are not available for future expenditures. The City’s investment in capital assets is reported net of related debt, though it should be noted that the resources needed to repay this debt must be provided from other sources as the capital assets themselves cannot be used to service this debt.

A small portion of the City’s net position, $41.6 million (1.8% of the total), represents resources that are subject to external restrictions on their use.

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

The following table presents the components of the government-wide Statement of Net Position at the end of the fiscal year for both 2022 a nd 2023. The governmental and business-type activities columns reflect amounts that have been restated in this financial report. Any prior period adjustments that changed net position are explained in the notes though none occurred in the current report.

City of Bakersfield - Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2022 2023 2022 2023 2022 2023
Assets
Current and other assets $ 518,311 $ 594,651 $ 191,309 $ 203,738 $ 709,620 $ 798,389 Capital assets (net) 1,388,208 1,398,966 882,926 875,654 2,271,134 2,274,620 Total assets 1,906,519 1,993,617 1,074,235 1,079,392 2,980,754 3,073,009 Deferred Outflows of Resources 74,610 173,550 13,356 21,506 87,966 195,056 Liabilities
Long-term liabilities
outstanding 382,487 598,658 158,372 166,982 540,859 765,640 Other liabilities 115,480 133,695 29,149 30,667 144,629 164,362 Total liabilities 497,967 732,353 187,521 197,649 685,488 930,002 Deferred Inflows of Resources 131,434 14,873 18,737 5,648 150,171 20,521 Net Position
Net investment in capital assets 1,369,954 1,395,503 754,164 756,450 2,124,118 2,151,953 Restricted 21,536 21,358 20,200 20,200 41,736 41,558
Unrestricted (39,763) 3,081 106,969 120,952 67,206 124,033 Total Net Position $ 1,351,727 $ 1,419,942 $ 881,333 $ 897,602 $ 2,233,060 $ 2,317,544 Governmental Activities – Total assets for governmental activities increased by $87.1 million, with current and other assets in governmental activities increasing by $76.3 million and a capital assets increase of $10.8 million. Total liabilities increased by $234.4 m illion, with other liabilities increasing b y $18.2 m illion and long-term liabilities increasing b y $216.2 m illion.

Changes to the balance sheet accounts, specifically in capital assets and long-term liabilities are explained further in the applicable Note Disclosures of that accompanying this document. These changes are not related to any significant events that are considered notable or outside the normal operations of a municipal government. 8 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Of the $68.2 million increase in governmental activities total net position, unrestricted net position increased by $42.8 million, net investment in capital assets increased by $25.5 million and restricted net position decreased by $0.2 million. Net investment in capital assets increased due to continued development throughout the City increasing the value of overall infrastructure. The increase in unrestricted net position stems from continued decreases in the other post-employment benefit liability along with a decrease in pension liabilities this year as a result of improved investment performance of the City's pension plan.. There were also increases in revenues, in relation to much smaller levels of increases in expenses across most departments, resulted in an increase in net position. The operational changes are due to improved economic conditions and slowdowns in inflationary pressures.

Business-Type Activities – T otal assets for business-type activities increased b y $5.2 million, with current and other assets increasing by $12.4 million and a $7.3 million decrease in capital assets. Total liabilities increased by $10.1 million, with other liabilities increasing by $1.5 million and long-term liabilities also increasing by $8.6 million. Total net position for business- type activities increased b y $16.3 m illion. O f that amount, net investment in capital assets increased b y $2.3 m illion.

Restricted net position remained constant and unrestricted net position increased by $14.0 million. The overall increase in net position is the result of operations, specifically in Wastewater activities, and completed improvement projects in the Wastewater and, Refuse funds. As with governmental activities, there was a decrease in the net other post-employment benefit liability and the pension related liabilities that also played a part in the increased net position.

Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2022 and 2023. The City’s total revenues of $692.8 million were more than expenses of $605.8 million for an increase in net position before transfers & other items of $87.0 million. The governmental and business-type activities columns reflect amounts that have been restated in this financial report.

City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2022 2023 2022 2023 2022 2023
Revenues:

Program revenues:

Charges for services $ 67,803 $ 67,239 $ 137,668 $ 154,422 $ 205,471 $ 221,661 Operating grants and
contributions 43,350 46,450 9,583 6,578 52,933 53,028
Capital grants and
contributions 90,120 60,047 11,758 8,694 101,878 68,741 Total program revenues 201,273 173,736 159,009 169,694 360,282 343,430 General revenues:

Taxes:

Property taxes 96,169 103,660 - - 96,169 103,660
Sales taxes 201,047 199,751 - - 201,047 199,751
Other taxes 2,053 1,497 - - 2,053 1,497
Intergovernmental:

Intergovt, unrestricted 459 419 - - 459 419
Grants and contributions not
restricted to specific programs 28,518 30,202 - - 28,518 30,202 Investment earnings (5,253) 7,049 (1,925) 3,998 (7,178) 11,047 Miscellaneous 3,627 2,705 - - 3,627 2,705
Gain on sale of property 9 2 (9) 51 - 53
Total Revenues 527,902 519,021 157,075 173,743 684,977 692,764 9 CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2022 2023 2022 2023 2022 2023
Expenses:

Governmental:

General government 42,512 36,776 - - 42,512 36,776
Public safety - Police 129,729 157,182 - - 129,729 157,182 Public safety - Fire 45,765 58,352 - - 45,765 58,352
Public works 150,281 109,900 - - 150,281 109,900
Recreation and parks 26,119 39,782 - - 26,119 39,782
Development services 6,956 14,367 - - 6,956 14,367
Economic/Community dev. 50,041 31,828 - - 50,041 31,828 Interest on long-term debt 18 (3) - - 18 (3)
Subtotal - Governmental 451,421 448,184 - - 451,421 448,184 Business-Type:

Wastewater treatment - - 41,499 44,261 41,499 44,261
Refuse collection - - 58,507 65,669 58,507 65,669
Agricultural water - - 7,096 7,322 7,096 7,322
Domestic water - - 38,098 39,548 38,098 39,548
General aviation - - 430 488 430 488
Offstreet parking - - 342 330 342 330
Subtotal - Business-Type - - 145,972 157,618 145,972 157,618 Total expenses 451,421 448,184 145,972 157,618 597,393 605,802 Change in net position before
transfers & other items 76,481 70,837 11,103 16,125 87,584 86,962 Transfers (3,720) (2,771) (2,924) 144 (6,644) (2,627)
Changes in net position 72,761 68,066 8,179 16,269 80,940 84,335 Net Position - Beginning of
Year 1,309,462 1,351,728 879,676 881,333 2,189,138 2,233,061 Net Position - End of Year $ 1,382,223 $ 1,419,794 $ 887,855 $ 897,602 $ 2,270,078 $ 2,317,396 Governmental Activities – O perations of the City's governmental activities for the fiscal year resulted in a $68.1 m illion increase. The following chart displays the difference between the program revenue and expenses by activity to illustrate the amount each respective activity is supported by operational related revenues versus general tax revenue, w hich. The majority of the governmental activities of the City do not receive sufficient program revenues to cover their costs. The activities that have the largest portion of their activities covered by tax revenue are Public Safety and Public Works whose service delivery costs exceeded program revenues by $198.4 million and $42.0 million, respectively . 10 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Total expenses in Governmental Activities had a net decrease of $3.2 million from the previous fiscal year for an overall 0.7% decrease. That decrease is primarily due to less project activity funded by grants that were initiated in the Economic & Community Development (ECD) and Public Works departments in the prior year. With reductions of $18.2 million and $40.4 million respectively, less funds were utilized for ECD program contributions, specifically rental assistance, and in Public Works with reductions related to overall decreases in street and road improvement projects that did not have as significant levels of activity than in the prior year. There were increases in other areas though, where Public Safety costs increased by $40.0 million and Recreation & Parks by $13.7. These rising costs are connected to the significant cost-of-living increases approved for personnel along with the ongoing increases in California Public Employees' Retirement System (CalPERS) rates in the current year.
11 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Taxes are the largest revenue source for governmental activities, which is the case for most municipal governments, amounting to $304.9 million or 58.5% of total revenues. The second largest source of revenue is charges for services which amounts to $67.2 million or 13.0% of total revenues. That revenue is dependent on usage by the City residents and are increased annually based on the operational cost increases incurred by departments. Capital grants and contributions is also a significant revenue source for the City’s governmental activities, amounting to $60.0 million or 11.5% of total revenues. Grant revenue can be dependent on programs operations and reimbursable activities.

Governmental Activities Revenues decreased $8.9 million which is a 1.7% decrease compared to the previous fiscal year to a total of $519.0 million. That is not considered a significant change but is an indication of a potential slowdown in the general revenue growth local government have seen since even before the pandemic. The City will need to prepare budgets conservatively with that in mind and will have to continue to watch revenue trends.

General Revenues - While there was a slight decrease in general revenue, Property Tax revenues increased by 7.8%, or $7.5 million as this tax increases consistently based on overall increases in assessed values of property within the City limits. While that tax revenue source is fairly stable over the last number of years, the flattening of Sales Tax revenue is a change from recent years and consumer spending has slowed in the area.

Program Revenues - Capital Grants and Contributions decreased b y $30.1 m illion due to fewer special projects funded in Public Works compared to the prior year. The most significant reduction is related to the Thomas Roads Improvement Program (TRIP) projects which included decreases in activity related to construction and property acquisition when compared to the previous year. Operating Grants and Contributions increased $3.1 million as more funds related to ARPA revenue were utilized for affordable housing, public works projects in disadvantaged neighborhoods, and economic redevelopment all as a way to address the negative impacts of the COVID-19 pandemic.
12 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type Activities – T he City operates six Enterprise Funds that offer wastewater services, refuse collection, river & agricultural water, domestic water to City residents, downtown parking and a municipal airport.

Business-type activities increased the City’s net position by $16.3 million during the current year. The chart above compares total program revenues and expenses. As the graphic shows, program revenues exceeded program expenses in Wastewater Treatment by $3.3 million and Refuse Collection by $11.5 million. While the Airpark and Offstreet Parking program revenues exceeded program expenses by a combined $216 thousand. These increases were offset slightly by program expenses exceeding program revenues in Domestic Water by $5.3 million and River & Agricultural Water by $2.7 million. Total business-type expenses increased by $11.6 million (8.0%) over the prior year. That increase is not unexpected as inflationary pressures in the economy have resulted in increases of both materials, supplies and equipment, but has also increased labor costs and the related cost of employee benefits
The following chart illustrates the distribution of business-type revenues by category. The City’s business-type activities rely heavily on charges for services to fund their operations, making up 88.9% of total revenues. Capital grants and contributions is the second largest revenue source at 5.0% of total revenues. 13 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type activities program revenues increased by $10.7 million, 6.7%, over the prior year. The increase relates back to the increases in operational costs noted previously which requires comparable increases to rates charged to customers. There was an increase in Wastewater charges of $2.4 million and in Refuse Collection service revenue of $10.4 million due to rate increases and increased use.

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

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

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

As of the end of the current fiscal year, the City’s Governmental Funds reported combined ending fund balances of $380.8 million, an increase of $35.4 million in comparison with the prior year. The components of total fund balance are as follows (for more information see Note 14 – Fund Balances):
 Nonspendable fund balance, $0.9 m illion, are amounts that are not spendable in form, may be legally or contractually required to be maintained intact, or are made up of prepaid expenses and deposits.  Restricted fund balance, $25.5 million, consists of amounts with constraints put on their use by external creditors, grantors, contributions, laws, regulations or enabling legislation. Examples of restrictions on funds are those for (1) 14 CITY OF BAKERSFIELD
Management's Discussion and Analysis
$13.6 million for the purpose of the fund (i.e., Gas Tax and Road projects), (2) $ 2.8 million from the Redevelopment Successor Agency Housing Fund for projects and (3) $3.1 million for traffic safety projects.  Committed fund balance, $197.1 million, are amounts for specific purposes determined by the Bakersfield City Council, such as funds collected from fees paid to mitigate the traffic impacts to the regional circulation system of $61.4 million, funds set aside for future city facilities and infrastructure project $11.0 million, funds set aside by City Council in the General Fund for cash basis/emergency reserves of $51.1 million and $39.4 million for appropriations for next year’s budget.
 Assigned fund balance, $132.2 million, for funds set aside by management for specific purposes. Amounts include $95.9 million set aside for capital projects and $ 7.3 million for the fund purposes related to transient occupancy fees, and $39.4 million for PSVS fund balance. Those available funds are set aside for future projects that will meet the intended uses of those funds in accordance with the sales tax ballot measure.  Unassigned fund balance, $25.0 million represents the residual classification for the City’s General Fund.

General Fund: The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the General Fund’s total fund balance increased by 18.6%, or $23.9 million from $128.4 million to $152.3 million. The following detail of changes from the prior year explains this change in fund balance for the year:
 Total operating revenues have increased, as discussed previously, specifically related to property tax and ARPA/COVID relief revenue. The use of Federal recovery dollars in the General Fund was directed to one-time programs and projects so when those dollars lapse in 2024, there should not be a negative impact. Other general revenues will continue to be monitored to understand the effect ongoing slowdowns in growth will have on operational needs.
 Total expenditures increased b y $25.5 million (a 8.9% increase). This was mainly due to increases in the Public Safety costs in both Police and Fire expenditures related primarily to cost-of-living increases, pension costs as will as filling some vacancies ($13.1 million and $3.5 million, respectively). Overall personnel expenditures also increased throughout all General Fund departments due to hiring related to PSVS programs those same pay raises and increases in pension costs.

Other governmental funds: As compared with the prior year, the total fund balances of the remaining governmental funds increased by 5.3%, or $11.5 million, to $228.5 million with the following significant changes:
 The Transient Occupancy Tax (TOT) Fund increased b y $0.8 m illion from $6.5 m illion to $7.3 m illion. The amounts in this fund cover both the collection and disbursement or TOT revenue for capital project and the operational activity of both the City's Convention Center/Arena Operations and Visit Bakersfield. The increase in fund balance is solely connected to increased profitability for those convention and concert activities as ticket and concession revenue have improved from prior years.
 The Capital Outlay Fund balance increased by $5.8 million from $123.4 million to $129.2 million. Of this amount, $27.5 million is committed for contractual obligations and $5.0 million is committed for facility replacement. The remaining amount of $95.9 m illion is assigned and available for use at management’s discretion. The resulting increase shows that expenditures were in line with projected revenues (which included significant transfers from the PSVS fund for ongoing CIP projects).
 The Park Improvement Fund decreased by $1.2 million. Of this fund balance amount, the full amount of $7.9 million is committed for contractual obligations. The decrease in fund balance is the allocation of the accumulation of funds connected to prior year for planned expansion and improvement of area parks.  The Transportation Development Fund increased by $6.3 m illion this year. The fund balance in the fund is the accumulation of development fees collected each year to be used for expansion of the City's streets and road infrastructure. There were not as many of those types of projects initiated in the current year so fund balance has been set aside for future infrastructure expansion and improvements. 15 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Proprietary Funds - The City’s Proprietary Funds are shown in their entirety in the government-wide financial statements. All funds are being reported as major funds, so there is no need to report additional detail elsewhere in the document.

The Wastewater Treatment Fund has total net position of $564.6 million at the end of the current year, an increase of $4.7 million over the prior year. Total net position includes $493.8 million net investment in capital assets and $20.2 million of restricted assets which are not available to cover current expenses. The remaining net position of $50.6 million is unrestricted and available to cover current operating and capital needs (including plant and equipment replacement) of the fund. The majority of the increase resulted from more development completed to infrastructure in the current year which was reflected in a $5.9 million addition in Capital Contributions. That change was offset by an operational loss brought about by inflationary drivers increasing operational costs and wages. There was also a reduction in connection fee revenue that played a factor in the overall operational results. These connection fees are driven primarily by residential development within the City which has seen a reduction from previous years.

The Refuse Collection Fund has total net position of $13.6 million at the end of the current year, an increase of $8.1 million from the prior year. The increase is due to more revenue collected from residential services/rates than is necessary to cover the operating costs of the division brought about by a rate increase that was approved to cover the growing cost of collection services, particularly with regards to recycling. This increase was in part related to changes in operational design brought on by losses in the prior year. This included increases in cost sharing for facilities that serve the County residences and higher collections for commercial customers.

The River and Agricultural Water Fund has total net position of $30.5 million at the end of the current year, an increase of $ 2.7 million over the prior year. Total net position includes $20.1 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $10.4 million is unrestricted and available to cover current operating and capital needs of the fund. There have been significant operational gains when compared to the prior year due to more rainfall providing more water to be available to sell to customers. Offsetting those higher water sales, there were still inflationary driven increases to expenses but overall operational results were improved and increased net position.

The Domestic Water Fund has total net position of $ 269.6 million at the end of the current year, a decrease of $1.7 million over the prior year. Total net position includes $ 221.3 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $48.2 million is unrestricted and available to cover current operating and capital needs of the fund. The domestic water operations continue to operate outside of expected revenue so a review of rates charged to residents and businesses is needed to insure that revenues get back on track with expected continued escalations in costs. That increase is also related to the rise in operational costs that have affected departments throughout the City.

The General Aviation Fund has total net position of $11.6 m illion at the end of the current year, an increase o f $160,421 compared to the prior year. Total net position includes $10.7 million net investment in capital assets, which is not available to cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.

The Offstreet Parking Fund has total net position of $ 0.6 million at the end of the current year, a decrease of $74,553 compared to the prior year. T otal net position includes $0.6 m illion net investment in capital assets, which is not available to cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.
16 CITY OF BAKERSFIELD
Management's Discussion and Analysis

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as of June 30 of the current fiscal year amounts to $2.3 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, bridges and construction in progress. T he total increase in the City’s investment in capital assets for the current fiscal year was $16.2 million. Of this amount, a $23.5 million increase relates to Governmental Activities and a $7.3 million decrease that relates to Business-Type Activities. Depreciation expense of $(105.4) million reduced capital assets by this amount.

These financial statements include infrastructure assets constructed or acquired through fiscal year 2022-23.

Major capital asset events during the current fiscal year included the following:
 A variety of street construction projects and rehabilitation of major arterial streets. C onstruction in progress for governmental activities as of the end of the current fiscal year is $210.8 million. This figure includes over $30.1 million towards major street construction, traffic signals, and resurfacing projects throughout the City.

City of Bakersfield - Capital Assets
(in thousands)
Governmental Activities Business-Type Activities Total
2022 2023 2022 2023 2022 2023
Land and water storage rights $ 450,331 $ 450,650 $ 24,036 $ 24,439 $ 474,367 $ 475,089 Depreciable buildings, property,
equipment and infrastructure, net 764,285 736,443 810,467 805,373 1,574,752 1,541,816 Construction in progress 159,812 210,823 16,947 14,366 176,759 225,189 Non-amortizable intangible assets - - 31,477 31,477 31,477 31,477 Total Capital Assets $ 1,374,428 $ 1,397,916 $ 882,927 $ 875,655 $ 2,257,355 $ 2,273,571 17 CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Outstanding Debt
Balance Incurred Satisfied Balance
June 30, 2022 or Issued or Matured June 30, 2023
Governmental Activities
Notes Payable $ 3,547,669 $ - $ (1,199,444) $ 2,348,225 Total governmental activities $ 3,547,669 $ - $ (1,199,444) $ 2,348,225 Business-Type Activities
Revenue Bonds Payable $ 120,697,778 $ - $ (9,601,778) $ 111,096,000 Notes Payable 2,719,697 - (284,507) 2,435,190
Total business-type activities $ 123,417,475 $ - $ (9,886,285) $ 113,531,190 Total Debt $ 126,965,144 $ - $ (11,085,729) $ 115,879,415 * Certificates of Participation in governmental activities are debt of the former Redevelopment Agency that is now reported as City debt.
 Long-Term Debt - At the end of the current fiscal year, the City had a total debt outstanding of $ 115.9 million. The City’s total debt decreased by a net amount of $11.1 million during the current fiscal year. This amount is the result of normal debt maturities.

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

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

More detailed information regarding capital asset and long-term debt activity can be found in the related notes to the financial statements. See Note 5 for capital assets and Note 12 for long-term debt. 18 CITY OF BAKERSFIELD
Management's Discussion and Analysis

GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget reflect an increase in resources of $32.4 million and an increase in appropriations of $42.7 million. Significant budgetary amendments (changes) are summarized as follows:
 $7.4 million increase in various resources and appropriations due to revenues associated with open purchase orders at the end of the previous fiscal year. Also, $13.9 million increase in various resources due to revenues associated with prior year appropriations not spent and carried forward to this fiscal year.  $7.7 million increase in appropriations for PSVS tax revenue that was determined to be available for operational programs and capital projects approved by the City Council at mid-year. T hese included programs to address homelessness, public safety and park improvements.

The final amended revenue estimate budget figures in the General Fund were lower than actual revenue by $7.0 million and appropriations were higher than actual expenditures by $59.4 m illion. Significant differences between budget and actual amounts are as follows:
 $3.4 million positive variance in tax revenue. This is the result of an increase in property tax revenue and sales and use tax revenue. Property tax revenue was initially estimated to increase while Sales tax revenue did not come in as expected due to adjustments made at the State level for overpayments from prior years. That shortfall reduced the overall budget variance but revenues were still above estimates. Projections for tax revenue were conservative in nature because of uncertainty throughout the year on the level and sustainability of economic recovery in the area.  $6.2 million less than budgeted in intergovernmental revenue which is due primarily to this source of funds being based on reimbursement of expenditures incurred. Some of the project activity for these awards had not moved forward resulting in less revenue being recognized.
 The budget for charges for services was $7.7 million less than actual in the current year due to additional amounts allocated from ARPA activity for City staffing costs in public safety. Those dollars were not initially budget as other recovery programs were expected to utilize those dollars. When it was determined that the City could use more of these dollars to recover operational costs, management charged those costs directly to the grant award.  There was a $24.1 m illion variance of appropriations over actual expenditures in Economic & Community Development. The savings is due to major economic development service projects for businesses and members of the underserved community that were budgeted but not started.  The majority of the other variances of appropriations over actual expenditures across the General Fund departments was from savings brought about primarily in salary and benefits from unfilled positions or positions filled later in the year.
19 CITY OF BAKERSFIELD
Management's Discussion and Analysis

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The key assumptions in the General Fund revenue forecast for fiscal year 2023-24 were:

1. Property tax revenue is projected to grow at 3.5% which is the same level as last year’s estimate as projected by Kern County.

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

3. California Public Employees’ Retirement System (CalPERS) experienced investment returns above the plan's established discount rate which has actually created a slight reduction in the Normal rates going into the next fiscal year. The unfunded portion of the retirement contribution still saw an increase so overall contributions went up for Miscellaneous, Police, and Fire, approximately 1.1%, 1.1%, and 2.3% respectively. While the plan performance for the applicable year reduced the expected cost escalation, larger increases are projected for future fiscal years as plan performance has not been as positive in recent investment periods.

New items specifically addressed in the 2023-24 budget include the following:

Police Department – T he Police Department’s operating budget has increased from fiscal year 2022-23 by 11.3%, totaling $17.1 million. T his increase is primarily attributable to increased costs related to the PSVS plan to increase the number of officers and support staff in the department. There were also significant cost-of-living adjustments and a rise in retirement rates that also result in higher operating budgets.

Fire Department – The Fire Department's operating budget had and increase of just under 12.4% from fiscal year 2022-23 totaling $7.0 million. The increase is primarily due to cost-of-living adjustments and a rise in retirement rates.

Public Works - The Public Works Department operating budget increased by $10.5 million, or 6.3%, from fiscal year 2022-23.

The increase was also due to cost-of-living adjustments and a rise in retirement rates causing increases in salaries & benefit costs.

Development Services – T he Development Services Department’s operating budget increased from fiscal year 2022-23 b y

7.2%, an increase of $2 million This increase is due to cost-of-living adjustments and a rise in retirement rates.

Economic & Community Development – T he Economic & Community Development Department’s operating budget has decreased from fiscal year 2022-23 by 7.2%, totaling $1.2 million. This decrease is due lower funding available for community focused programs to address economic development though it was offset with other increases in salaries & benefit costs.

Recreation and Parks – The Recreation and Parks Department’s operating budget has increased from fiscal year 2022-23 by 7%, totaling $2.2 million. The increase was due primarily to the rise in CalPERS rates as well as an increases in salaries & benefit costs.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information can be sent via e-mail to:
[email protected]. Formal written requests should be addressed to: City of Bakersfield, Attn: Finance Department, 1600 Truxtun Avenue, Bakersfield, CA 93301.
20 Government-Wide Financial Statements
21 CITY OF BAKERSFIELD
Statement of Net Position
June 30, 2023
Assets
Governmental
Activities
Business-Type
Activities Total
Current assets:

Cash and investments $ 491,517,638 $ 177,024,543 $ 668,542,181 Accounts receivable, net 26,751,343 9,315,403 36,066,746 Interest receivable 3,884,326 1,539,794 5,424,120
Advances to other funds - current - 288,775 288,775
Due from other governmental agencies 50,917,949 2,138,073 53,056,022 Internal balances (7,080,396) 7,080,396 -
Prepayments and inventories 2,341,835 - 2,341,835
Total current assets 568,332,695 197,386,984 765,719,679 Noncurrent assets:

Capital assets:

Land 450,649,754 24,438,536 475,088,290
Depreciable capital assets, net 736,443,372 805,372,878 1,541,816,250 Construction in progress 210,823,278 14,365,834 225,189,112 Intangible assets - 31,476,906 31,476,906
Lease assets, net of amortization 860,306 - 860,306
Subscription assets, net of amortization 189,493 - 189,493 Land held for resale 1,198,743 - 1,198,743
Advances to other funds - 2,146,415 2,146,415
Lease receivable 400,647 4,179,772 4,580,419
Notes/loans receivable 24,718,739 25,087 24,743,826
Total noncurrent assets 1,425,284,332 882,005,428 2,307,289,760 Total assets 1,993,617,027 1,079,392,412 3,073,009,439
Deferred Outflows of Resources:

Deferred pensions (See Note 17) 163,028,303 13,203,869 176,232,172 Deferred OPEB (See Note 18) 10,521,959 1,497,215 12,019,174 Debt issuance - 6,805,256 6,805,256
Total deferred outflows of resources 173,550,262 21,506,340 195,056,602 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 36,939,012 12,168,811 49,107,823 Customers' deposits - 6,535,857 6,535,857
Advances from grantors and third parties 79,547,103 121,875 79,668,978 Long-term debt 701,646 10,056,778 10,758,424
Advances from other funds - current - 288,775 288,775
Lease & subscription liability 616,753 747,648 1,364,401 Kern River Levee District - 335,450 335,450
Claims and judgments payable 13,284,000 - 13,284,000
Compensated absences payable 2,606,264 411,964 3,018,228 Total current liabilities 133,694,778 30,667,158 164,361,936 Noncurrent liabilities:

Long-term debt 1,646,578 101,039,222 102,685,800
Advances from other funds - 2,146,415 2,146,415
Lease & subscription liability 484,377 14,166,035 14,650,412 Claims and judgments payable 64,945,000 - 64,945,000
Net other post-employment benefits liability 20,032,309 2,850,486 22,882,795 Compensated absences payable 19,057,196 2,068,676 21,125,872 Net pension liability 492,492,814 44,711,201 537,204,015 Total noncurrent liabilities 598,658,274 166,982,035 765,640,309 Total liabilities 732,353,052 197,649,193 930,002,245
Deferred Inflows of Resources:

Deferred pensions (See Note 17) 5,277,867 337,917 5,615,784 Deferred OPEB (See Note 18) 9,214,558 1,311,181 10,525,739 Deferred Leases (See Note 10) 380,188 3,998,628 4,378,816 Total deferred inflows of resources 14,872,613 5,647,726 20,520,339 Net Position:

Net investment in capital assets 1,395,502,719 756,449,727 2,151,952,446 Restricted: Capital improvements 21,357,879 20,200,000 41,557,879 Unrestricted 3,081,026 120,952,107 124,033,133
Total net position $ 1,419,941,624 $ 897,601,834 $ 2,317,543,458 The accompanying notes are an integral part of these financial statements. 22 23

CITY OF BAKERSFIELD
Statement of Activities
For the Fiscal Year Ended June 30, 2023
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
Primary Government:

Governmental activities:

General government $ 36,776,455 $ 10,265,564 $ 32,416,997 $ - $ 42,682,561 Public safety - Police 157,182,433 3,769,689 2,823,090 - 6,592,779 Public safety - Fire 58,352,144 9,825,370 699,458 - 10,524,828 Public works 109,899,852 15,584,199 5,870,065 46,491,688 67,945,952 Recreation & parks 39,781,689 20,303,609 206,550 1,790,211 22,300,370 Development services 14,366,698 7,490,244 - 180,088 7,670,332 Economic /Community development 31,828,294 - 4,434,128 11,584,598 16,018,726 Interest on long-term debt (3,224) - - - -
Total governmental activities 448,184,341 67,238,675 46,450,288 60,046,585 173,735,548 Business-type activities:

Wastewater treatment 44,261,402 36,560,842 5,092,663 5,894,701 47,548,206 Refuse collection 65,668,875 76,907,921 284,981 - 77,192,902 River and agricultural water 7,322,078 9,931,949 - 53,744 9,985,693 Domestic water 39,547,695 30,282,579 1,190,106 2,745,925 34,218,610 General aviation 488,137 592,720 10,000 - 602,720
Offstreet parking 329,928 146,342 - - 146,342
Total business-type activities 157,618,115 154,422,353 6,577,750 8,694,370 169,694,473 Total primary government $ 605,802,456 $ 221,661,028 $ 53,028,038 $ 68,740,955 $ 343,430,021 General Revenues:

Taxes:

Property taxes
Sales and use tax
Other taxes
Intergovernmental, unrestricted
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Gain on sale of property
Transfers
Total general revenues and transfers
Change in net position
Change in accounting principle GASB 96
SBITA beginning balance
Net position - beginning of year, as restated
Net position - end of year
The accompanying notes are an integral part of these financial statements. 24 Net (Expenses) Revenues and
Changes in Net Position
Governmental
Activities
Business-Type
Activities Total
$ 5,906,106 $ - $ 5,906,106
(150,589,654) - (150,589,654)
(47,827,316) - (47,827,316)
(41,953,900) - (41,953,900)
(17,481,319) - (17,481,319)
(6,696,366) - (6,696,366)
(15,809,568) - (15,809,568)
3,224 - 3,224
(274,448,793) - (274,448,793)
- 3,286,804 3,286,804
- 11,524,027 11,524,027
- 2,663,615 2,663,615
- (5,329,085) (5,329,085)
- 114,583 114,583
- (183,586) (183,586)
- 12,076,358 12,076,358
$ (274,448,793) $ 12,076,358 $ (262,372,435)
$ 103,659,840 $ - $ 103,659,840
199,751,271 - 199,751,271
1,496,831 - 1,496,831
419,097 - 419,097
30,203,358 - 30,203,358
7,049,209 3,997,545 11,046,754
2,705,121 - 2,705,121
2,164 50,565 52,729
(2,771,093) 144,280 (2,626,813)
342,515,798 4,192,390 346,708,188
68,067,005 16,268,748 84,335,753
146,939 - 146,939
1,351,874,619 881,333,086 2,233,207,705
$ 1,419,941,624 $ 897,601,834 $2,317,543,458
25 26
Governmental Fund Financial Statements
27 CITY OF BAKERSFIELD
Balance Sheet
Governmental Funds
June 30, 2023
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Assets:

Cash and investments $ 131,594,085 $ 3,385,413 $ - $ 6,065,186 Accounts receivable, net 3,696,620 3,874,684 14,684,420 - Interest receivable 1,087,051 70,546 - 100,750
Due from other governmental agencies 37,881,480 - 1,804,961 10,275,021 Due from other funds 1,534,200 - - -
Notes/loans receivable - - 2,606,112 -
Lease receivable 400,647 - - -
Prepaid items 60,731 - - -
Total assets $ 176,254,814 $ 7,330,643 $ 19,095,493 $ 16,440,957 Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable $ 12,042,911 $ 39,008 $ 358,645 $ 2,834,165 Due to other governmental agencies 6,637,032 - - -
Due to other funds - - 1,534,200 -
Advances from grantors and third parties 2,555,118 - - - Total liabilities 21,235,061 39,008 1,892,845 2,834,165 Deferred Inflows of Resources:

Lease related items 380,188 - - -
Deferred revenue 2,341,397 - 17,289,407 -
Total Deferred Inflows of Resources 2,721,585 - 17,289,407 - Fund Balances:

Nonspendable 99,455 - - -
Restricted - - - 13,606,792
Committed 98,091,483 - - -
Assigned 29,000,457 7,291,635 - -
Unassigned 25,106,773 - (86,759) -
Total fund balances 152,298,168 7,291,635 (86,759) 13,606,792 Total liabilities, deferred inflows of
resources, and fund balances $ 176,254,814 $ 7,330,643 $ 19,095,493 $ 16,440,957 The accompanying notes are an integral part of these financial statements. 28 Covid Relief
Capital
Outlay
Park
Improvement
Transportation
Development
Redevelopment
Successor
Agency -
Housing
Other
Governmental
Funds
Total
Governmental
Funds
$ 60,570,593 $ 131,798,814 $ 12,965,351 $ 59,939,897 $ 2,781,648 $ 3,188,333 $ 412,289,320 - 111,070 - - 215 4,381,600 26,748,609
617,767 793,495 116,612 481,419 23,804 35,445 3,326,889 675,841 275,953 - - - 50 50,913,306
- - - - - - 1,534,200
- - - - 22,112,627 - 24,718,739
- - - - - - 400,647
- 779,865 - - - - 840,596
$ 61,864,201 $ 133,759,197 $ 13,081,963 $ 60,421,316 $ 24,918,294 $ 7,605,428 $ 520,772,306 $ 1,025,678 $ 4,529,036 $ 5,172,095 $ 1,756,276 $ - $ 185,220 $ 27,943,034 - - - - - - 6,637,032
- - - - - - 1,534,200
54,862,092 - - - 22,112,627 17,266 79,547,103
55,887,770 4,529,036 5,172,095 1,756,276 22,112,627 202,486 115,661,369 - - - - - - 380,188
- 46,606 - - - 4,269,938 23,947,348
- 46,606 - - - 4,269,938 24,327,536
- 779,865 - - - - 879,320
5,976,431 - - - 2,805,667 3,133,004 25,521,894
- 32,479,596 7,909,868 58,665,040 - - 197,145,987
- 95,924,094 - - - - 132,216,186
- - - - - - 25,020,014
5,976,431 129,183,555 7,909,868 58,665,040 2,805,667 3,133,004 380,783,401 $ 61,864,201 $ 133,759,197 $ 13,081,963 $ 60,421,316 $ 24,918,294 $ 7,605,428 $ 520,772,306 29 CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds $ 380,783,401 Amounts reported for Governmental Activities in the Statement of Net Position are different because:

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

Capital assets 2,747,703,055
Ending accumulated depreciation (1,409,906,066) 1,337,796,989 Right to use lease asset (net of amortization). 860,306 Subscription Assets (net of amortization). 104,854
Land held for resale is not a current financial resource and is not reported in the Governmental Funds. 1,198,743
Deferred outflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds. 159,533,185
Deferred outflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds. 10,102,324 Deferred inflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds. (5,081,356)
Deferred inflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds. (8,847,065) Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (2,030) Unavailable revenue and other resources not available to liquidate liabilities of the current period are not recognized in the Governmental Funds. 23,947,348
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The assets and liabilities of the Internal Service Funds are included in governmental activities in the Government-Wide Statement of Net Position. 43,908,511
Long-term liabilities are not due and payable in the current period and therefore they are not reported in the Governmental Funds Balance Sheet. Noncurrent liabilities allocated from Internal Service Funds are included in the Internal Service Funds adjustment above.

Notes/Contracts/Loans payable (2,348,224)
Compensated absences payable (20,981,250)
Lease payable (925,767)
Subscription payable (96,231)
Unfunded post-employment benefits (19,233,384)
Unfunded pension benefits (480,778,730) (524,363,586)
Net Position of Governmental Activities $ 1,419,941,624 The accompanying notes are an integral part of these financial statements. 30 31

CITY OF BAKERSFIELD
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2023
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Revenues:

Taxes $ 316,256,425 $ 11,135,080 $ - $ -
Licenses and permits 3,360,089 - - -
Intergovernmental 8,622,630 - 12,746,295 50,928,207
Charges for services 34,875,728 11,237,857 - -
Fines, forfeitures and assessments 1,148,647 - - 35,624 Interest income (loss) 1,320,846 467,575 11,469 244,353 Loan payments - - 54,797 -
Contributions and donations 210,042 - - -
Other income 2,152,247 - 55,127 61,613
Total revenues 367,946,654 22,840,512 12,867,688 51,269,797 Expenditures:

Current:

General government 20,269,972 11,628,038 - -
Public safety - Police 147,605,005 - - -
Public safety - Fire 54,998,122 - - -
Public works 32,370,676 - - 4,010,812
Recreation and parks 30,077,625 - - -
Development services 13,747,976 - - -
Economic/Community development 6,800,463 - 9,449,709 -
Non-departmental 8,239,123 - - -
Capital outlay - - 2,799,478 47,400,099
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 314,108,962 11,628,038 12,249,187 51,410,911 Excess (deficiency) of revenues
over (under) expenditures 53,837,692 11,212,474 618,501 (141,114) Other financing sources (uses):

Transfers in 11,264,480 - - -
Transfers out (41,245,304) (10,432,276) (384,339) (9,300) Total other financing sources (uses) (29,980,824) (10,432,276) (384,339) (9,300) Net change in fund balances 23,856,868 780,198 234,162 (150,414) Fund balances - beginning, restated 128,441,300 6,511,437 (320,921) 13,757,206 Fund balances - ending $ 152,298,168 $ 7,291,635 $ (86,759) $ 13,606,792 The accompanying notes are an integral part of these financial statements. 32 Covid Relief
Capital
Outlay
Park
Improvement
Transportation
Development
Redevelopment
Successor
Agency -
Housing
Other
Governmental
Funds
Total
Governmental
Funds
$ - $ 7,426,975 $ - $ - $ - $ - $ 334,818,480
- - - - - 379,723 3,739,812
31,239,767 180,088 - - - 1,742,824 105,459,811
- 49,135 - 48,973 - 1,664,914 47,876,607
- 194,620 1,790,211 12,993,031 - 1,331,870 17,494,003
1,674,584 1,178,653 176,123 663,603 51,769 121,394 5,910,369 - - - - - - 54,797
- - - - - - 210,042
- 16,725 - 4,429 142,111 - 2,432,252
32,914,351 9,046,196 1,966,334 13,710,036 193,880 5,240,725 517,996,173 454,721 - - 122,998 - - 32,475,729
- - - - - 1,719,247 149,324,252
- - - - - 1,760,386 56,758,508
- - - 459,153 - 556,357 37,396,998
- - - - - 17,725 30,095,350
- - - - - - 13,747,976
11,723,460 - - - - 243,357 28,216,989
5,178,295 41,497 - - - - 13,458,915
3,057,874 47,356,326 3,212,310 7,787,489 - 144,126 111,757,702 - - - - - 1,199,445 1,199,445
- - - - - 6,339 6,339
20,414,350 47,397,823 3,212,310 8,369,640 - 5,646,982 474,438,203 12,500,001 (38,351,627) (1,245,976) 5,340,396 193,880 (406,257) 43,557,970 - 44,175,462 - 1,000,000 - 1,205,784 57,645,726
(12,500,000) - - - - (1,272,000) (65,843,219)
(12,500,000) 44,175,462 - 1,000,000 - (66,216) (8,197,493) 1 5,823,835 (1,245,976) 6,340,396 193,880 (472,473) 35,360,477 5,976,430 123,359,720 9,155,844 52,324,644 2,611,787 3,605,477 345,422,924 $ 5,976,431 $ 129,183,555 $ 7,909,868 $ 58,665,040 $ 2,805,667 $ 3,133,004 $ 380,783,401 33 CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities For the Fiscal Year Ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds $ 35,360,477 Amounts reported for Governmental Activities in the Statement of Activities are different because:

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

Capital Outlay eliminated $ 15,359,286
Depreciation and amortization expense is deducted from fund balance (net of Internal Service Fund depreciation of $10,782,965 which has already been allocated to serviced funds). (66,520,131) Contributions of infrastructure and improvements by developers are capitalized in the Statement of Activities, but are not recorded in the Governmental Fund Financial Statements because no cash changed hands. 70,877,308 19,716,463
Certain expenses are reported in the Government-Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, these expenses are not reported as expenditures in Governmental Funds.

Net compensated absences expense (1,531,822)
Interest expense on long-term debt 9,565
Net pension expense (8,787,511)
Net other post-employment benefit expense 14,021,078 3,711,310 Bond and loan proceeds provide current financial resources to Governmental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond principal is an expenditure in Governmental Funds, but the repayment reduces long-term liabilities in the Government-Wide Statement of Net Position. 1,199,445
Unearned revenue and other resources not available to liquidate liabilities of the current period are not recognized in the Governmental Funds. Revenue in the Statement of Activities is not limited by availability, so certain revenues need to be reduced by the amounts that were unavailable at the end of the year. This adjustment records a net decrease in revenues - unavailable revenues at the beginning of the year exceed ending unavailable revenues by this amount. (451,069) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the Internal Service Funds is reported with Governmental Activities. 10,993,837
Less: amount of Internal Service Funds net income allocated to Business Type Acctivites (2,463,458) Change in Net Position of Governmental Activities $ 68,067,005 The accompanying notes are an integral part of these financial statements. 34 Proprietary Fund Financial Statements
These funds account for operations (a) that are financed and operated in a m anner similar to private business enterprises where the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of net income is appropriate for accountability purposes.

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

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

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

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

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

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

Internal Service Funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis.
35 CITY OF BAKERSFIELD
Statement of Net Position
Proprietary Funds
June 30, 2023
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Current assets:

Cash and investments $ 86,132,654 $ 25,954,591 $ 13,247,341 Accounts receivable, net 1,969,894 1,993,633 1,613,605
Interest receivable 737,852 189,654 107,808
Advances to other funds - current 288,775 - -
Due from other governmental agencies - 2,138,073 -
Prepayments and inventories - - -
Total current assets 89,129,175 30,275,951 14,968,754
Noncurrent assets:

Capital assets:

Land 10,689,406 2,958,335 2,175,944
Depreciable buildings, property,
equipment and infrastructure, net 576,721,904 6,579,586 9,698,322 Construction in progress 10,717,325 389,859 158,241
Intangible assets - - 8,032,678
Lease receivable 3,056,185 - -
Subscription Asset - net of amortization - - -
Advances to other funds 2,146,415 - -
Other long-term receivable - - 25,087
Total noncurrent assets 603,331,235 9,927,780 20,090,272 Total assets 692,460,410 40,203,731 35,059,026
Deferred outflows of resources:

Deferred pensions 3,981,429 7,294,351 1,075,486
Deferred other post-employment benefits 442,948 898,848 116,564 Debt issuance 6,805,256 - -
Total deferred outflows of resources 11,229,633 8,193,199 1,192,050 Current liabilities:

Accounts payable and accrued liabilities 4,916,833 3,674,143 1,125,441 Claims payable - - -
Workers' compensation claims - - -
Compensated absences payable 177,304 211,984 1
Advances from other funds - current - 288,775 -
Long-term debt - due within one year 10,056,778 - -
Lease liability - due within one year - - -
Subscription liability - due within one year - - -
Advances from grantors and third parties - 121,875 -
Total current liabilities 15,150,915 4,296,777 1,125,442 Noncurrent liabilities:

Long-term debt - due in more than one year 101,039,222 - - Lease liability - due in more than one year - - -
Kern River Levee District/Buena Vista - - 335,450
Subscription liability - due in more than one year - - - Customers' deposits 4,311,708 384,701 -
Workers' compensation claims - - -
Compensated absences payable 700,276 1,034,674 202,705
Advances from other funds - 2,146,415 -
Net pension liability 13,801,849 24,260,226 3,751,931
Net other post-employment benefits liability 843,310 1,711,278 221,924 Total noncurrent liabilities 120,696,365 29,537,294 4,512,010 Total liabilities 135,847,280 33,834,071 5,637,452
Deferred inflows of resources:

Deferred pensions (69,628) 218,377 17,647
Deferred other post-employment benefits 387,910 787,162 102,082 Deferred Inflow Leases 2,908,396 - -
Total deferred inflows of resources 3,226,678 1,005,539 119,729 Net position:

Net investment in capital assets 493,837,891 9,927,780 20,065,185 Restricted for:

Capital improvements 20,200,000 - -
Unrestricted 50,578,195 3,629,540 10,428,710
Total net position (deficit) $ 564,616,086 $ 13,557,320 $ 30,493,895 Adjustments to reflect the consolidation of internal service fund activities related to proprietary funds
Net position of business-type activities
The accompanying notes are an integral part of these financial statements. 36 Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental Activities
Internal Service Funds
$ 50,552,871 $ 1,066,627 $ 70,459 $ 177,024,543 $ 79,228,318 3,725,050 11,546 1,675 9,315,403 2,734
467,692 36,559 229 1,539,794 557,437
- - - 288,775 -
- - - 2,138,073 4,643
- - - - 1,501,239
54,745,613 1,114,732 72,363 190,306,588 81,294,371
740,597 7,464,254 410,000 24,438,536 -
209,863,235 2,324,252 185,579 805,372,878 60,119,415
2,207,442 892,967 - 14,365,834 -
23,444,228 - - 31,476,906 -
- 1,123,587 - 4,179,772 -
- - - - 84,638
- - - 2,146,415 -
- - - 25,087 -
236,255,502 11,805,060 595,579 882,005,428 60,204,053
291,001,115 12,919,792 667,942 1,072,312,016 141,498,424 771,017 81,586 - 13,203,869 3,495,118
38,855 - - 1,497,215 419,635
- - - 6,805,256 -
809,872 81,586 - 21,506,340 3,914,753
2,338,551 92,606 21,237 12,168,811 2,356,916
- - - - 3,648,000
- - - - 9,636,000
15,386 7,289 - 411,964 221,301
- - - 288,775 -
- - - 10,056,778 -
747,648 - - 747,648 -
- - - - 25,586
- - - 121,875 -
3,101,585 99,895 21,237 23,795,851 15,887,803
- - - 101,039,222 9,192,000
14,166,035 - - 14,166,035 -
- - - 335,450 -
- - - - 53,545
1,839,448 - - 6,535,857 -
- - - - 55,753,000
128,744 2,277 - 2,068,676 460,909
- - - 2,146,415 -
2,727,307 169,888 - 44,711,201 11,714,084
73,974 - - 2,850,486 798,925
18,935,508 172,165 - 173,853,342 77,972,463
22,037,093 272,060 21,237 197,649,193 93,860,266
163,287 8,234 - 337,917 196,511
34,027 - - 1,311,181 -
- 1,090,232 - 3,998,628 367,493
197,314 1,098,466 - 5,647,726 564,004
221,341,819 10,681,473 595,579 756,449,727 60,119,415
- - - 20,200,000 -
48,234,761 949,379 51,126 113,871,711 (9,130,508)
$ 269,576,580 $ 11,630,852 $ 646,705 890,521,438 $ 50,988,907 7,080,396
$ 897,601,834
37 CITY OF BAKERSFIELD
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2023
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Operating revenues:

Intergovernmental $ - $ 284,981 $ -
Charges for services 36,172,143 67,922,380 7,012,818
Cost recoveries 19,028 8,786,501 728,824
Rental income 365,777 - 30,811
Other sales or services 13,570 164,018 2,159,496
Miscellaneous (9,675) 35,022 -
Total operating revenues 36,560,843 77,192,902 9,931,949 Operating expenses:

General and administrative 19,884,976 66,154,607 6,555,307 Transmission and distribution 429,090 1,265,853 259,437 Workers' compensation payments - - -
Claims paid - - -
Depreciation and amortization 20,029,888 286,746 563,141 Compensated absences - 99,209 18,291
Total operating expenses 40,343,954 67,806,415 7,396,176 Operating income (loss) (3,783,111) 9,386,487 2,535,773 Nonoperating revenues (expenses):

Interest income (loss) 2,065,985 552,810 206,630
Connection fees 5,092,662 - -
Interest expense (4,062,172) (38,662) -
Gain on sale of capital assets - 37,704 -
Total nonoperating revenues (expenses) 3,096,475 551,852 206,630 Income (loss) before transfers
and capital contributions (686,636) 9,938,339 2,742,403 Capital contributions 5,894,701 - -
Transfers in - - -
Transfers out (515,500) (1,875,080) (49,600)
Change in net position 4,692,565 8,063,259 2,692,803
Total Net Position (Deficit) -
Beginning of Year, as Restated 559,923,521 5,494,061 27,801,092 Total Net Position-End of Year $ 564,616,086 $ 13,557,320 $ 30,493,895 Adjustment to reflect the consolidation of internal
service activity related to proprietary funds
Change in net position of business-type activities
The accompanying notes are an integral part of these financial statements. 38 Domestic
Water
General
Aviation
Offstreet
Parking Totals
Governmental
Activities
Internal Service
Funds
$ - $ 240,603 $ - $ 525,584 $ -
27,863,431 332,691 146,342 139,449,805 65,432,595
67,692 16,523 - 9,618,568 4,253,876
- - - 396,588 -
2,300,255 - - 4,637,339 -
51,201 12,903 - 89,451 44,950
30,282,579 602,720 146,342 154,717,335 69,731,421
29,683,178 345,810 237,733 122,861,611 48,459,305
2,085,779 16,510 - 4,056,669 -
- - - - 4,873,257
- - - - 2,700,305
7,160,085 124,031 90,630 28,254,521 10,782,965
- - - 117,500 18,633
38,929,042 486,351 328,363 155,290,301 66,834,465
(8,646,463) 116,369 (182,021) (572,966) 2,896,956
1,117,358 54,294 466 3,997,543 1,138,840
1,190,106 - - 6,282,768 -
(636,692) - - (4,737,526) -
12,861 - - 50,565 338,495
1,683,633 54,294 466 5,593,350 1,477,335
(6,962,830) 170,663 (181,555) 5,020,384 4,374,291
2,745,925 - - 8,640,626 1,193,146
2,500,000 - 120,000 2,620,000 5,426,400
(12,300) (10,242) (12,998) (2,475,720) -
(1,729,205) 160,421 (74,553) 13,805,290 10,993,837
271,305,785 11,470,431 721,258 39,995,070
$ 269,576,580 $ 11,630,852 $ 646,705 $ 50,988,907
2,463,458
$ 16,268,748
39 CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Wastewater
Treatment
Refuse
Collection
River &
Agriculture
Water Fund
Domestic
Water
Cash from operating activities:

Cash received from:

Customers $ 41,702,023 $ 69,826,021 $ 8,994,197 $ 32,046,753 Prior year reimbursements and cost recoveries 19,028 8,786,501 728,824 67,692 Cash paid to:

Suppliers (16,562,248) (56,175,732) (4,892,354) (33,359,670) Employees (7,872,216) (13,946,555) (2,165,445) (1,317,136) Net cash provided (used) by operating activities 17,286,587 8,490,235 2,665,222 (2,562,361) Cash from noncapital financing activities:

Cash transfered from other funds (2) - - 2,500,000
Cash transfers to other funds (515,500) (1,875,080) (49,600) (12,300) Interfund loan receivable 284,507 (284,507) - -
Connection fees 5,092,662 - - 1,190,106
Net cash provided (used) bynoncapital financing
activities 4,861,667 (2,159,587) (49,600) 3,677,806
Cash from capital and related financing activities:

Principal payments
Issuance of debt 756,140 - - -
Notes/Loans/Bonds (9,601,778) - - -
Lease payments - - - (712,201)
Interest paid (4,062,172) (38,662) - (636,692)
Acquisition and construction of capital assets (8,657,133) (1,942,651) (470,684) (1,099,325) SBITA payments - - - -
Proceeds from lease activities (88,866) - - -
Proceeds from sale of capital assets - 37,704 - 12,861
Net cash provided (used) by capital and related
financing activities (21,653,809) (1,943,609) (470,684) (2,435,357) Cash from investing activities:

Interest received 1,887,578 669,500 215,848 923,352
Net increase (decrease) in the fair value of investments (352,404) (270,132) (90,081) (156,296) Net cash provided by investing activities 1,535,174 399,368 125,767 767,056 Net increase (decrease) in cash and investments 2,029,619 4,786,407 2,270,705 (552,856) Cash and investments - Beginning of year 84,103,035 21,168,184 10,976,636 51,105,727 Cash and investments - End of Year 86,132,654 25,954,591 13,247,341 50,552,871 The accompanying notes are an integral part of these financial statements. 40 General
Aviation Fund
Offstreet
Parking Fund Totals
Governmental
Activities
Internal
Service Funds
$ 591,339 $ 149,407 $153,309,740 $ 65,624,131
16,523 - 9,618,568 4,253,876
(146,601) (251,709) (111,388,314) (46,644,482)
(167,144) - (25,468,496) (3,957,285)
294,117 (102,302) 26,071,498 19,276,240
3 120,000 2,620,001 5,426,401
(10,242) (12,999) (2,475,721) 1,193,146
- - - -
- - 6,282,768 -
(10,239) 107,001 6,427,048 6,619,547
- - 756,140 -
- - (9,601,778) -
- - (712,201) -
- - (4,737,526) -
(171,890) - (12,341,683) (14,372,797)
- - - (5,507)
(31,889) - (120,755) -
- - 50,565 338,495
(203,779) - (26,707,238) (14,039,809)
57,074 287 3,753,639 1,072,902
(6,479) - (875,392) (374,485)
50,595 287 2,878,247 698,417
130,694 4,986 8,669,555 12,554,395
935,933 65,473 168,354,988 66,673,923
1,066,627 70,459 177,024,543 79,228,318
The accompanying notes are an integral part of these financial statements. 41 CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Wastewater
Treatment
Refuse
Collection
River &
Agriculture
Water Fund
Domestic
Water
Reconciliation of Operating income (Loss) to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) (3,783,111) 9,386,487 2,535,773 (8,646,463) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense 20,029,888 286,746 563,141 7,160,085 (Increase) decrease in accounts receivable (120,033) (507,167) (688,801) 417,865 (Increase) decrease in inventories - - - -
(Increase) decrease in prepaid items - - - -
Increase (decrease) in accounts payable 631,780 333,309 538,497 (1,631,158) Increase (decrease) in unearned revenue - (1,764) - -
Increase (decrease) in customers' deposits 1,049,005 (14,101) 9,188 146,640 Other accrued liabilities - - - -
Increase (decrease) in compensated absences 75,660 116,213 6,512 (41,711) Increase (decrease) in net pension liability 5,909,438 10,218,695 1,471,167 952,573 Increase (decrease) in deferred outflows/inflows of
resources for pensions (5,855,826) (10,058,840) (1,471,413) (876,831) Increase (decrease) in net other post-employment benefits liability 242,008 512,034 10,293 26,945
Increase (decrease) in deferred outflows/inflows of
resources for OPEB (892,222) (1,781,377) (309,135) (70,306) Net cash provided (used) by operating activities: 17,286,587 8,490,235 2,665,222 (2,562,361) Noncash investing capital and financing activities:

Contributions of infrastructure and improvements $ 5,894,701 $ - $ - $ 2,745,925 42 General
Aviation Fund
Offstreet
Parking Fund Totals
Governmental
Activities
Internal
Service Funds
116,369 (182,021) (572,966) 2,896,956
124,031 90,630 28,254,521 10,782,965
5,142 3,065 (889,929) 153,406
- - - (19,465)
- - - (878)
60,711 (13,976) (80,837) (994,628)
- - (1,764) -
- - 1,190,732 -
- - - 6,908,000
(16,696) - 139,978 18,633
119,269 - 18,671,142 4,546,148
(114,709) - (18,377,619) (4,499,991)
- - 791,280 271,526
- - (3,053,040) (786,432)
294,117 (102,302) 26,071,498 19,276,240
$ - $ - $ 8,640,626 $ -
43 44
Fiduciary Fund Financial Statements
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individual private organizations, other governmental units and/or other funds. Detailed combining statements for Fiduciary Funds are located in the Supplementary Information section. Below are descriptions of the generic fund types within this category and specific funds within each fund type.

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

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

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

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

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

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

Improvement Districts Fund - T his fund is used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the benefited properties. A trustee administers the periodic payment to the bondholders. In addition, Community Service Districts created for the West Ming and Old River Ranch developments are accounted for in this section. These funds are collected to be used to pay for public safety costs in the applicable communities. 45 CITY OF BAKERSFIELD
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Custodial
Funds
Assets:

Cash $ 29,304,142 $ 3,324,678 $ 35,702,326
Accounts receivable - - 587
Interest receivable 225,438 2,912 56,589
Investments
Domestic equities - 26,260,260 -
Fixed income - 60,887,663 -
Total investments - 87,147,923 -
Land held for resale 60,895 - -
Total assets 29,590,475 90,475,513 35,759,502
Liabilities:

Payables:

Advances from grantors and third parties 2,725,323 - -
Deposits - - 32,846,739
Accrued bond interest - - 195,172
Bonds 1,730,000 - 2,717,591
Notes 8,268,911 - -
Total liabilities 12,724,234 - 35,759,502
Net Position:

Restricted for:

Individuals, organizations and other governments 16,866,241 - - Other post-employment benefits - 90,475,513 -
Total Net Position $ 16,866,241 $ 90,475,513 $ -
The accompanying notes are an integral part of these financial statements. 46 CITY OF BAKERSFIELD
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2023
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds Custodial Funds
Additions
Contributions to pooled investments $ - $ 1,334,756 $ - Developer fees 296,988 - -
Successor agency property tax deposits 1,415,610 - -
Assessment District Contributions - - 3,630,839
Special Deposit Contribution - - 129,475,656
Other Contributions - - 671,265
Other income / (loss) 141 - 286,508
Interest income (loss) 734,918 3,529,496 167,764
Total additions 2,447,657 4,864,252 134,232,032
Deductions:

Benefits - 2,010,170 -
Administrative expenses - 231,657 -
Purchase of uninhabited land 847,660 - -
Obligation retirement 481,914 - 3,028,472
Bond - Interest - - 454,830
Other Distributions - - 130,748,730
Total deductions 1,329,574 2,241,827 134,232,032
Transfers in 2,626,813 - -
Change in net position 3,744,896 2,622,425 -
Net position - beginning of year 13,121,345 87,853,088 - Net position - end of year $ 16,866,241 $ 90,475,513 $ - The accompanying notes are an integral part of these financial statements. 47 48

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

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

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

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

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

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

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

The City reports the following major governmental funds:

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

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

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

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

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

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

Transportation Development Fund - T he Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the regional circulation system caused by a development project. The fees are paid w hen a building permit for the development project is obtained, and are based upon the amount of traffic the development will generate. The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect updated costs and growth projections. 50 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Basis of Presentation (continued)
Redevelopment Successor Agency - Housing Fund - T he Redevelopment Successor Agency - Housing Fund was created on February 1, 2012, pursuant to the provisions of the Redevelopment Restructuring Act. The City has chosen to assume the housing functions and take over the housing assets of the former Redevelopment Agency.

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

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

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

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

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

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

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

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

The City reports the following additional fund types:

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

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

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

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

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

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

D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items Cash and Investments
Cash balances of each of the City's funds, except for certain Fiduciary Funds, are pooled and invested by the City. Income earned from pooled investments is allocated to each of the funds based on average pooled cash balances during the year.

Deficit cash balances are classified as due to other funds and funded by the General Fund or related operating fund.

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

Statutes authorize the City to invest in obligations of the United States Treasury, agencies and instrumentalities, commercial paper, bankers' acceptances, repurchase agreements, money market funds, and the State Treasurer's investment pool. The City's Pension Trust Fund is also authorized to invest in corporate bonds rated A or better by a national rating system generally recognized and used by banks and investment brokers in the United States. 52 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) Investments are comprised of obligations of the United States Treasury, agencies and instrumentalities, cash, time certificates of deposit, mutual funds, bankers' acceptances, money market accounts, deposits in the State of California Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP). Investments are stated at fair value.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As of June 30, 2023, net position is as follows:

Governmental
Activities
Business-Type
Activities Total
Net investment in capital assets $ 1,395,502,719 $ 756,449,727 $ 2,151,952,446 Restricted 21,357,879 20,200,000 41,557,879
Unrestricted 3,081,026 120,952,107 124,033,133
Total net position $ 1,419,941,624 $ 897,601,834 $ 2,317,543,458 Fund balances of the governmental funds are report using a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported. Fund balances for governmental funds are segregated as follows:
 Nonspendable Fund Balance – includes net resources that cannot be spent because of their form or because of legal or contractual limitations, and therefore must remain intact.  Restricted Fund Balance – i ncludes net resources that have externally enforceable limitations on their use. T hese limitations can be established by creditors, grantors, or by laws and regulations.  Committed Fund Balance – includes amounts with self-imposed limitations and are set in place prior to the end of the fiscal year. Commitments are set forth by the formal action of the City’s highest level of decision-making authority, the City Council (via resolutions or ordinances), and the limitations require that same level of authority to be removed.  Assigned Fund Balance – i ncludes amounts for which the intended use results in limitations but do not meet the requirements for either the “Restricted” or “Committed” classifications. I ntended use can be established by the City Council, a governing committee or board, or by a City official designated as having that authority as provided by the Fund Balance Policy.
 Unassigned Fund Balance – is the residual balance of the General Fund not included in the other classifications. 55 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued) The City Council establishes, modifies or rescinds fund balance commitments though approval of contracts for services and supplies that require City Council authorization through resolution. Fund balance assignments are made by agreements entered into by department heads, and their designees, for specific purposes. The City Council also establishes fund balance assignments through the adoption of the budget and subsequent budget amendments. Assignments are generally temporary and as such, additional action is not usually needed for assignments to be removed. The City Council approved, through resolution, a Fund Balance policy that established these rules for fund balance commitments and assignments in the General Fund. It was not deemed necessary to include a policy to achieve and maintain a specific level of unrestricted fund balance in the General Fund.

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

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

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

The property tax calendar for the City is as follows:

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

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

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

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

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

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

2. Public hearings are conducted to obtain taxpayer comments.

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

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

Budgets are adopted for all governmental fund types and are prepared on a basis consistent w ith GAAP. Budgeted amounts are 57 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Stewardship, Compliance, and Accountability (continued) as originally adopted, or as amended by the City Council. D uring the fiscal year ended June 30, 2023, the City Council approved $122,004,609 of increases to the originally adopted budget, excluding carryovers of prior year encumbered balances and selected capital appropriations.

Deficit Net Position
The Self-Insurance Internal Service Fund reported a deficit in net position of $59,825,840 at the close of the fiscal year. The continued deficit is the result of a significant increase in the workers' compensation and general liability calculated in the City’s most recent actuarial study. Workers' compensation charges can fluctuate significantly from year to year and staff will continue to adjust departmental rates accordingly to maintain sufficient funding levels.

The Community Development Block Grant Fund reported a deficit in net position of $ 86,759 at the close of the fiscal year. The deficit is caused development activity funded by this activity that will have supplemental resources added to to the fund in the subsequent year.

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

F. New Accounting Pronouncements
During the fiscal year ending June 30, 2023, the City implemented the following standards:

In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related to note disclosures. Upon implementation, there was no material effect on the City's accounting or financial reporting.

In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). Upon implementation, there was no material effect on the City's accounting or financial reporting.

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users. The City has elected not to early implement GASB Statement No. 96 and has not determined its effects on the City's financial statements. The resulting implementation of this standard did have a material affect on the City's financial accounting and reporting. Those effects are included in the face of the financial reports and in a separate note disclosure (Note 11).

In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this statement are to enhance comparability in accounting and financial reporting to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Certain provisions of this statement became effective upon issuance. With the implementation of the statement there was no material effect on the City's accounting or financial reporting.

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements, which have been updated to reflect revised effective dates as applicable. The City has elected not 58 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. New Accounting Pronouncements (continued)
to early implement these Statements and has not determined their effects on the City's financial statements:

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections . The objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for reporting periods beginning after June 15, 2023 (Fiscal Year 2023-24).

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

The requirements of this Statement are effective for reporting periods beginning after December 15, 2023 (Fiscal Year 2024- 25).

In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this Statement are effective for reporting periods beginning after June 15, 2024 (Fiscal Year 2024-25).

In April 2024 GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. The requirements of this Statement are effective for reporting periods beginning after June 15, 2025 (Fiscal Year 2025-26).

NOTE 2 - CASH AND INVESTMENTS
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 668,542,181
Fiduciary funds:

Cash and investments 155,479,069
$ 824,021,250
Cash and investments as of June 30, 2023, consist of the following:

Cash on hand $ 1,702,910
Deposits with financial institutions 13,863,645
Investments 826,294,995
GASB Stmt. No. 31 Fair Value Adjustment (17,840,300)
$ 824,021,250
59 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Investment Authorized by the California Government Code and the City’s Investment Policy The table below i dentifies the investment types that are authorized for the City by the California Government Code, or the City’s investment policy, where more restrictive. The table also identifies the more restrictive provision of the California Government Code or the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk.

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

Maximum
Percentage Maximum
Authorized Investment Types of Portfolio Maturity
U.S. Treasury Bills, Notes and Bonds 0 to 100% 5 Years
U.S. Government Agency Obligations 20% per agency 5 Years Bankers' Acceptances 40% 180 Days
Commercial Paper 25% 270 Days
Repurchase Agreements 30% 90 Days
Local Agency Investment Fund 40% N/A
Time Certificates of Deposit 40% 5 Years
Public Agency Demand Accounts 30% N/A
Mutual Funds 20% N/A
Investments Authorized by Debt Agreements
The City and its component units have $371,711 in investments held by bond trustees pledged to the payment or security of certain debt issues. These investments are held in direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States Government or an agency thereof. The California Government Code provides that monies held by a bond trustee pledged to the payment or security of debt issues, in absence of specific statutory provisions governing the issuance of the debt, may be invested in accordance with the ordinances, resolutions, or indentures specifying the types of investments the respective bond issue’s trustee may make. The obligations described above are authorized per the investment agreements with the bond trustees and include, but are not limited to, Federal Land Bank Bonds, Federal Home Loan Bank notes and bonds, Export-Import Bank notes and guaranteed participation certificates, obligations of or fully guaranteed by the Government National Mortgage Association, Federal National Mortgage Association notes, debentures and guaranteed certificates of participation, obligations of the International Bank of Reconstruction and Development and Federal Home Loan Mortgage Corporation notes.

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

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As part of the City’s investment policy, one of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and liquidity needed for operations.
60 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

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

Federal Farm Credit Bank $ 96,228,990 $102,381,667 $ 9,997,500 $ 40,981,390 $ 51,402,777 $ - Federal Home Loan Bank 95,746,373 102,477,680 8,990,250 35,746,180 57,741,250 - Federal Home Loan Mortgage Corp. 91,942,733 95,025,523 13,000,000 40,000,000 42,025,523 - Federal National Mortgage Assn. 67,979,656 69,853,182 26,370,000 29,307,107 14,176,075 - U.S. Treasury Bills, Notes, and Bonds 458,669 458,669 458,669 - - - Local Agency Investment Fund 145,330,815 145,330,815 145,330,815 - - - CAMP 219,167,178 219,167,178 219,167,178 - - -
Mutual Funds (1) 91,228,570 91,228,570 91,228,570 - - - Investment Contracts 371,711 371,711 - - - 371,711
Total $808,454,695 $826,294,995 $514,542,982 $146,034,677 $165,345,625 $ 371,711 (1) See Note 17 for Other Post-Employment Benefits.

Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations Except as inherent by their nature as disclosed above, the City’s investments (including those held by a bond trustee) are not highly sensitive to interest rate fluctuations.

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

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year end for each investment type. On August 5, 2011, the rating agency of Standard & Poors (S&P) assigned a negative outlook to the credit rating of the United States government. On August 8, 2011, S&P then downgraded that credit rating to AA+ from AAA
61 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Remaining as of the Year-End
Investment Type
Minimum
Legal
Rating AAA AA+
Not
Rated
U.S. Government Agency Obligations:

Federal Farm Credit Bank $102,381,667 $ - $102,381,667 $ - Federal Home Loan Bank 102,477,680 - 102,477,680 -
Federal Home Loan Mortgage Corp. 95,025,523 - 95,025,523 - Federal National Mortgage Assn. 69,853,182 - 69,853,182 - U.S. Treasury Bills, Notes, and Bonds 458,669 - 458,669 - Local Agency Investment Fund 145,330,815 - - 145,330,815 CAMP 219,167,178 - - 219,167,178
Mutual Funds (1) 91,228,570 91,228,570 - -
Investment Contracts 371,711 - - 371,711
Total $826,294,995 $ 91,228,570 $370,196,721 $364,869,704 (1) See Note 17 for Other Post-Employment Benefits
Concentration of Credit Risk
The City’s investment policy does not limit the amount that can be invested in any one issuer beyond the limitations stipulated by the California Government Code. Investments in any one issuer (other than United States Treasury securities, mutual funds and external investment pools) that represent 5% or more of the City’s total investments are as follows.

Issuer Investment Type Reported Amount Percentage
Federal Farm Credit Bank Federal Agency Securities $ 102,381,667 12% Federal Home Loan Bank Federal Agency Securities $ 102,477,680 12% Custodial Credit Risk
Custodial credit risk for deposits is the risk that the City will not be able to recover its deposits or will not be able to recover collateral securities in the possession of an outside party if a depository institution fails. T he custodial credit risk for investments is the risk that the City will not be able to recover the value of its investment or collateral securities held by another party if the counterparty (e.g., broker-dealer) to a transaction fails. T he California Government Code and City’s investment policy do not contain legal or policy requirements that w ould limit exposure to custodial credit risk for deposits or investments, other than the following provision applicable to deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. C alifornia law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2023, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code. As of June 30, 2023, all of the City’s investments were held by the City itself or by a broker-dealer (counterparty) other than the broker-dealer used by the City to purchase the securities in the City’s name.
62 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
Investment in State Investment Pools
Investments are stated at fair value. Fair value is established quarterly based on quoted market prices received from the securities custodian. Fair value of investments held fluctuates with interest rates. The fair value of participants’ position in the pool is the same as the value of the pool shares. The value of participants’ equity withdrawn is based on the book value of the participants’ percentage participation at the date of such withdrawal.

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

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

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

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

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

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

The City has a reported fair value of investments of $808,454,695, of which $240,816,319 are valued using Level 1 inputs.

These include all of the U.S Government Agency Obligations and Time Certificates of Deposit. The remaining investments are valued using Level 2 inputs.
63 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES Accounts receivable at June 30, 2023 o f the City's major individual funds and non-major and internal service funds in the aggregate, including the applicable allowance for uncollectible accounts, are as follows:

Accounts Receivable -
Governmental Funds:

General
Fund
Transient
Occupancy
Taxes
Fund
Community
Development
Block Grant
Fund
Capital
Outlay
Fund
Redevelopment
Successor
Agency -
Housing Fund
Non-Major
Governmental
Funds
Internal
Service
Funds
Total
Governmental
Activities
Taxes $ - $3,874,684 $ - $ - $ - $ - $ - $ 3,874,684
Accounts 3,696,620 - 14,684,420 111,070 215 4,381,600 176,040 23,049,965 Gross Receivables 3,696,620 3,874,684 14,684,420 111,070 215 4,381,600 176,040 26,924,649 Less: Allowance
for Uncollectible - - - - - - (173,306) (173,306)
Total Accounts Receivable -
Net $ 3,696,620 $3,874,684 $ 14,684,420 $ 111,070 $ 215 $ 4,381,600 $ 2,734 $ 26,751,343 Accounts Receivable -
Proprietary Funds:

Wastewater
Treatment
Fund
Refuse
Collection
Fund
Agricultural
Water
Fund
Domestic
Water
Fund
General
Aviation
Fund
Offstreet
Parking
Fund
Total
Business-Type
Activities
Accounts $ 1,969,894 $ 1,993,633 $ 1,613,605 $ 3,725,050 $ 11,546 $ 1,675 $ 9,315,403 Gross Receivables 1,969,894 1,993,633 1,613,605 3,725,050 11,546 1,675 9,315,403 Less: Allowances for
Uncollectible - - - - - - -
Total Accounts Receivable - Net $ 1,969,894 $ 1,993,633 $ 1,613,605 $ 3,725,050 $ 11,546 $ 1,675 $ 9,315,403 64 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES (continued) Accounts payable and accrued liabilities at June 30, 2023, are composed of the following:

Accounts Payable and
Accrued Liabilities General
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Covid Relief
Capital
Outlay
Park
Improvement
Governmental Activities: Fund Fund Fund Fund Fund Fund Fund Accounts payable $ 12,042,911 $ 39,008 $ 358,645 $ 2,834,165 $ 1,025,678 $ 4,529,036 $ 5,172,095 Due to other governments 6,637,032 - - - - - -
Total Accounts Payable
and Accrued Liabilities $ 18,679,943 $ 39,008 $ 358,645 $ 2,834,165 $ 1,025,678 $ 4,529,036 $ 5,172,095 Accounts Payable and
Accrued Liabilities
Transportation
Development
Non-Major
Governmental Govt-Wide
Internal
Service
Total
Governmental
Governmental Activities: Fund Funds Funds Funds Activities Accounts payable $ 1,756,276 $ 185,220 $ 2,029 $ 2,356,916 $ 30,301,979 Due to other governments - - - - 6,637,032
Total Accounts Payable
and Accrued Liabilities $ 1,756,276 $ 185,220 $ 2,029 $ 2,356,916 $ 36,939,011 Accounts Payable and
Accrued Liabilities -
Wastewater
Treatment
Refuse
Collection
River and
Agricultural
Water
Domestic
Water
General
Aviation
Offstreet
Parking
Total
Business-Type
Business-Type Activities: Fund Fund Fund Fund Fund Fund Activities Accounts payable $ 3,480,729 $ 3,674,143 $ 1,125,441 $ 2,338,551 $ 92,606 $ 21,237 $ 10,732,707 Accrued interest 1,436,104 - - - - - 1,436,104
Total Accounts Payable
and Accrued Liabilities $ 4,916,833 $ 3,674,143 $ 1,125,441 $ 2,338,551 $ 92,606 $ 21,237 $ 12,168,811 NOTE 4 - DUE FROM OTHER GOVERNMENTS
Amounts due from other governments at June 30, 2023 are comprised of the following:

Federal
Government
State of
California
County/City
Agencies
Total
Governmental
Activities
Business-Type
Activities
Total
Reporting
Entity
Senate Bill (SB) 90 Claims $ - $ 2,209,231 $ - $ 2,209,231 $ - $ 2,209,231 Sales Tax - 35,672,252 - 35,672,252 - 35,672,252
Public Employee Retirement System - 4,643 - 4,643 - 4,643 American Rescue Plan Act 675,840 - - 675,840 - 675,840
Caltrans - 7,813,482 - 7,813,482 298,582 8,112,064
SB 1 - Road Maintenance & Rehabilitation - 2,461,538 - 2,461,538 - 2,461,538 Proposition 68 - 192,403 - 192,403 - 192,403
Economic/Community Development 1,804,960 - - 1,804,960 - 1,804,960 Department of Natural Resources - 83,550 - 83,550 - 83,550 Kern County Waste Management - - - - 1,839,491 1,839,491 Kern County Public Works - - 50 50 - 50
Totals $ 2,480,800 $ 48,437,099 $ 50 $ 50,917,949 $ 2,138,073 $ 53,056,022 65 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS
Capital asset activities for the year ended June 30, 2023, were as follows:

Balance Balance
June 30, 2022 Adjustments Additions Retirements June 30, 2023 Governmental Activities
Capital assets, not being depreciated
Land $ 450,330,562 $ - $ 319,192 $ - $ 450,649,754
Construction in progress 159,812,152 - 58,845,534 7,834,408 210,823,278 Total capital assets, not being depreciated 610,142,714 - 59,164,726 7,834,408 661,473,032 Capital assets, being depreciated
Buildings, structures and improvements 164,706,781 - 1,260,772 - 165,967,553 Infrastructure 1,872,266,526 - 31,420,778 - 1,903,687,304 Rolling equipment 115,528,060 2,852,118 10,803,666 2,498,088 126,685,756 Furniture and other equipment 21,794,896 (112,530) 3,317,969 57,251 24,943,084 Total capital assets, being depreciated 2,174,296,263 2,739,588 46,803,185 2,555,339 2,221,283,697 Less accumulated depreciation for
Buildings, structures and improvements (92,768,459) - (4,529,311) - (97,297,770) Infrastructure (1,240,025,008) - (61,355,784) - (1,301,380,792) Rolling equipment (62,515,324) (108,419) (10,008,743) (2,365,612) (70,266,874) Furniture and other equipment (14,702,288) 34,453 (1,281,442) (54,388) (15,894,889) Total accumulated depreciation/amortization (1,410,011,079) (73,966) (77,175,280) (2,420,000) (1,484,840,325) Total capital assets, being depreciated, net 764,285,184 2,665,622 (30,372,095) 135,339 736,443,372 Leases, net of amortization (Note 10) 1,379,712 - (519,406) - 860,306 SBITA, net of amortization (Note 11) 128,675 - 60,818 - 189,493 Governmental activities capital assets, net $ 1,375,936,285 $ 2,665,622 $ 28,334,043 $ 7,969,747 $ 1,398,966,203 Business-Type Activities
Capital assets, not being depreciated/amortized
Land $ 24,036,133 $ - $ 402,403 $ - $ 24,438,536
Water rights 31,476,906 - - - 31,476,906
Construction in progress 16,946,746 - 5,683,707 8,264,619 14,365,834 Total capital assets, not being depreciated 72,459,785 - 6,086,110 8,264,619 70,281,276 Capital assets, being depreciated
Buildings, structures and improvements 335,986,383 - 4,935,607 - 340,921,990 Infrastructure 925,758,236 - 16,161,330 - 941,919,566
Equipment 92,116,092 - 2,063,879 - 94,179,971
Total capital assets being depreciated 1,353,860,711 - 23,160,816 - 1,377,021,527 Less accumulated depreciation for
Buildings, structures and improvements (154,282,295) - (8,090,425) - (162,372,720) Infrastructure (335,323,832) - (15,680,586) - (351,004,418) Equipment (53,788,001) - (4,483,510) - (58,271,511)
Total accumulated depreciation (543,394,128) - (28,254,521) - (571,648,649) Total capital assets, being depreciated, net 810,466,583 - (5,093,705) - 805,372,878 Business-type activities capital assets, net $ 882,926,368 $ - $ 992,405 $ 8,264,619 $ 875,654,154 66 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS (continued)
Depreciation and amortization expense was charged in the following functions in the Statement of Activities:

Governmental functions: Depreciation
General government $ 1,775,688
Public safety - Police 689,933
Public safety - Fire 928,921
Public works 69,427,838
Recreation and parks 3,593,356
Development services 759,544
Total $ 77,175,280
Business-type functions:

Wastewater treatment $ 20,029,890
Refuse collection 286,747
River & agricultural water 563,140
Domestic water 7,160,084
General aviation 124,031
Offstreet parking 90,629
Total $ 28,254,521
NOTE 6 - LAND HELD FOR RESALE
The City, as the Redevelopment Successor Agency, has been transferred real property to be held for a limited period that will be used for future development. The inventory for land held for resale is presented at the lower of cost or net realizable value though it is initially recorded at historical costs. Subsequently, the land could be adjusted to net realizable value if and w hen the City enters into agreements for development or sale of the property for less than its historical cost, w hen a property is impaired or when property value decreases due to market conditions.

Balance at Balance at
Redevelopment Successor Agency - Housing June 30, 2022 Additions Deletions June 30, 2023 Land Held for Resale $ 1,198,744 $ - $ - $ 1,198,744
$ 1,198,744 $ - $ - $ 1,198,744
67 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES
Other long-term receivables consist of the following:

Governmental Activities
Deferred loans receivable associated with the low and moderate income housing project. These loans bear 0-3% interest and are not due until ten years after the loan agreement date (also see deferred revenue at Note 9). $ 2,606,112
Mercy Housing, Madison Place Apartments, 55 year loan term, with 1/55 to be forgiven each year of compliance to agreement. 241,651
Amcal Santa Fe Apartments, 55 year loan term, repayment begins from residual receipts following the date that the housing project is put in service. 134,691 Down payment assistance loans. 1,492,935
19th Street Senior Plaza, LLC, a 55 year loan term upon recordation of Certificate of Completion. 1,688,375
Park 20th Apartments, a 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%. 2,720,055
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%. 9,023,333
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 2.0%. 1,962,792
CalHOME Downpayment Assistance for a grant from the State which provided downpayment and closing cost assistance to seventeen (17) families within the Metropolitan Bakersfield area. The assistance was provided to those families whose incomes were at or below 120% of area median income. The loans of up to $40,000 are forgiven at 1/15th per year. 221,440
Golden Empire Housing, Park Place Apartments, 55 year loan term beginning July 12, 1999, ending on July 12, 2054, with the interest payment being deferred for first ten years, until year 2010, with an interest rate of 1.5%. 807,355 Capital Vision Equities, City Center Senior Housing, 35 year loan term beginning on March 28, 2001, ending March 28, 2036, with an interest rate of 5.85%. 990,000 Canyon Hills Assembly of God, Senior Housing Project 30 year loan term beginning July 30, 2001 ending July 30, 2031, with an interest rate of 0%. 310,000 Mill Creek Courtyard CIC - SEPA - Senior Housing Project. A 55 year loan term beginning from the date of execution by the developer. 2,520,000 Face value of loans $ 24,718,739
68 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES (continued)
Current portion $ -
Long-term portion 24,718,739
Business-Type Activities
Notes receivable in the River & Agricultural Water Fund are for the amounts due from various customers/vendors.

These loans are non-interest bearing. $ 25,087
Total business-type noncurrent receivables $ 25,087
NOTE 8 - INTERFUND TRANSACTIONS
Interfund transactions are comprised of loans, services provided, reimbursements, or transfers. Loans are reported as amounts “due to/due from” other funds or as “advances,” as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental activities and business-type activities are netted as part of the consolidation required to produce the government-wide financial statements.

Interfund receivable and payable balances at June 30, 2023 were:

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

Major Funds:

General Fund $ 1,534,200 $ -
Community Development Block Grant Fund - 1,534,200
$ 1,534,200 $ 1,534,200
These balances are a result of expenditures incurred prior to the receipt of the related special revenue source.

Fund
Advances from
Other Funds
Advances to
Other Funds
Business Type Funds
Wastewater Fund $ - $ 2,435,190
Refuse Fund 2,435,190 -
$ 2,435,190 $ 2,435,190
This balance is a result in an advance from the Wastewater Fund to the Refuse Fund in order to purchase a recycling center and has nine years remaining on the repayment schedule.
69 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued)
Interfund transfers at June 30, 2023 consisted of the following:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General Fund $ 11,264,480 $ 41,245,304
Gas Tax & Road Fund - 9,300
Covid Relief Fund - 12,500,000
Transient Occupancy Taxes Fund - 10,432,276
Community Development Block Grant Fund - 384,339
Capital Outlay Fund 44,175,462 -
Transportation Development Fund 1,000,000 -
Non-Major Funds:

State Safety Fund - 1,272,000
General Obligation Debt Fund 1,205,784 -
Subtotal 57,645,726 65,843,219
Private Purpose Trust Funds:

Affordable Housing Fund 2,626,813 -
Proprietary Funds:

Major Funds:

Wastewater Treatment Fund - 515,500
Refuse Collection Fund - 1,875,080
River & Agricultural Water Fund - 49,600
Domestic Water Fund 2,500,000 12,300
General Aviation Fund - 10,242
Offstreet Parking Fund 120,000 12,998
Internal Service Funds:

Equipment Management Fund 5,426,400 -
$ 68,318,939 $ 68,318,939
Additional details regarding transfers in and out of various funds are provided below:
 The $1,250,000 transfer in to the General Fund is from the State Safety Fund that subsidized the cost of the traffic division of the police department for parking fine violations.
 The $12,500,000 transfer from the COVID Relief Fund related to the allowable use of funds for lost revenue brought on by the pandemic of $10,000,000 and a capital project for water conservation to the Domestic Water Fund of $2,500,000.  The $41,245,304 transfer from the General Fund includes a transfer to the Capital Outlay Fund of $34,784,462 for various capital improvement projects, $793,529 to the General Obligation Debt Fund for the repayment of loans from PG&E for energy efficient retro fit projects, $120,000 to the Offstreet Parking Fund for security, $2,626,813 to the Affordable Housing Fund to aid in the housing crisis, as well as $2,920,500 to the Equipment Fund for operating activity.  The $10,432,276 t ransfers from the Transient Occupancy Taxes Fund include $10,391,000 transferred to the Capital Outlay Fund to fund a number of capital projects, $4,676 to the General Obligation Debt Fund for the repayment of a loan from PG&E for an energy efficiency retrofit at Mechanics Bank Arena, and $36,600 to the Equipment Fund for additional funding to replace equipment.
70 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued)
 The $384,339 t ransfer from the Community Development Block Grant (CDBG) Fund to the General Obligation Debt Fund is for the repayment of a Section 108 loan.
 The $1,000,000 transfer from the General Fund (PSVS) to the Transportation Development Fund was to cover a portion of the cost of a building purchased as part of the acquisitions necessary for a new highway project that was repurposed as a City operational facility for the Recreation & Parks and Fire Departments.  There were additional transfers to the Equipment Management Fund to purchase additional equipment for operations which include: the State Safety Fund ($22,000), the Gas & Tax & Road Fund ($9,300), the Sewer Fund ($515,000), the Refuse Fund ($1,875,080), the River & Agricultural Water Fund ($49,600), and the Domestic Water Fund ($12,300).

NOTE 9 - ADVANCES FROM GRANTORS AND THIRD PARTIES
The government-wide Statement of Net Position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of year-end but not yet earned because under both the accrual and modified accrual basis of accounting revenue may be recognized only when earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for advances from grantors and third parties.

The following table summarizes Advances from Grantors and third parties for the City at June 30, 2023:

Balance at
June 30, 2023
Governmental Activities:

General Fund
Dog License $ 61,786
Business License 2,493,332
General Fund Total 2,555,118
COVID Relief 54,862,092
Redevelopment Successor Agency - Housing 22,112,627
Non-Major Funds:

State TDA - Grants Advanced 17,266
Total Governmental Activities $ 79,547,103
Business-Type Activities:

Refuse Collection $ 121,875
Total Business-Type Activities $ 121,875
71 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES
A lease is defined as a contractual agreement that conveys control of the right to use another entity’s nonfinancial asset, for a minimum contractual period of greater than one year, in an exchange-like transaction.

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

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

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources in initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

The following are key estimates and judgments how the City determines the discount rate on the expected lease receipts to present value, lease term, and lease receipts:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

As lessor, the City recognized twelve lease agreements subject to GASB Statement No. 87, Leases, at the beginning of the fiscal year. The lease terms range from 48 to 994 months for the right to use land, land improvements, buildings, and infrastructure. Most of these leases include periodic adjustments to the lease amounts at determined intervals. The fixed lease payment ranges from $1 to $195,696 per year, with the incremental borrowing rate of 1.5%. For the year ended June 30, 2023 the City received an immaterial amount of variable and other payments from these lease arrangements.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
72 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES (continued)
Changes in lease receivable for the year ended June 30, 2023 are as follows:

Restated
Balance at
June 30, 2022 Additions
Principal
Retirement
Balance at
June 30, 2023
Governmental Activities
Lease Receivable $ 449,397 $ - $ 48,750 $ 400,647
Defered inflow of resources $ 434,694 $ - $ 54,506 $ 380,188 Balance at
June 30, 2022 Additions
Principal
Retirement
Balance at
June 30, 2023
Business-Type Activities
Lease Receivable $ 4,624,235 $ - $ 444,463 $ 4,179,772
Deffered inflow of resources $ 4,563,846 $ - $ 565,218 $ 3,998,628 City as a Lessee
The City is a lessee of nonfinancial assets such as land, buildings, and equipment. The City recognizes a lease liability and intangible right-to-use lease assets in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

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

The following are key estimates and judgments on how the City determines its discount rate on the expected lease payments to present value, lease term, and lease payments:
 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payment and purchase option price that the City is reasonably certain to exercise.

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

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

For the year ended June 30, 2023, the City paid an immaterial amount of variable and other payments from these lease arrangements.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. 73 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES (continued)
Changes in lease asset and lease liability for the year ended June 30, 2023 are as follows:

Balance at
June 30, 2022 Additions
Principal
Retirement
Balance at
June 30, 2023
Governmental Activities:

Lease assets
Right-to-use land $ 67,010 $ - $ - $ 67,010
Right-to-use-buildings 1,509,949 - - 1,509,949
Right-to-use equipment 34,947 - - 34,947
Total lease assets 1,611,906 - - 1,611,906
Accumulated amortization (232,194) (519,406) - (751,600) Total lease assets, net $ 1,379,712 $ (519,406) $ - $ 860,306 Lease liability $ 1,404,785 $ - $ (479,018) $ 925,767
During the year ended June 30, 2023, the City recognized lease expenses and interest expenses as follows:

Business-Type
Activities
Governmental
Activities
Amortization of lease assets $ - $ 519,406
Total lease expenses - 519,406
Lease interest expenses 636,692 36,013
Total lease interest expenses $ 636,692 $ 36,013
As of June 30, 2023, the City had a minimum principal and interest payment requirement for its lease activities with a remaining term in excess of one year, as follows:

Governmental Activities
Year ending Lease Interest Total
2024 $ 543,889 $ 20,783 $ 564,672
2025 340,692 4,819 345,511
2026 16,111 1,069 17,180
2027 9,958 590 10,548
2028 3,521 460 3,981
2029-2033 9,070 930 10,000
2034-2038 2,526 194 2,720
Totals $ 925,767 $ 28,845 $ 954,612
74 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 10 - LEASES (continued)
B. Leases of Intangible Items
GASB Statement No. 87 for leases specifically excludes inclusion of intangible assets. As such, there is a separate tracking of those leases for items identified under GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets .

The City entered into a long-term lease agreement in September 2005 for the acquisition of water rights with the Kern County Water Agency (KCWA). The agreement entitles the City to receive 6,500 acre feet of water per year in exchange for an annual payment tied to KCWA's water revenue certificates of participation from 2006 and 2008, which were used for the expansion of the water treatment facility. On March 1, 2016, KCWA issued a refunding bond that refunded the previous debt that the City's lease payments were based upon. The City's lease payments coincide with the amortization schedule for the related KCWA dept wit the value of the water rights at $14,913,683. The total lease obligations for the term of the agreement are as follows:

Business-Type Activities
Year ending Lease Interest Total
2024 $ 747,648 $ 602,990 $ 1,350,638
2025 782,515 566,907 1,349,422
2026 819,559 529,057 1,348,616
2027 860,240 488,979 1,349,219
2028 902,834 446,723 1,349,557
2029-2033 5,166,709 1,580,053 6,746,762
2034-2038 5,634,178 615,369 6,249,547
Totals $ 14,913,683 $ 4,830,078 $ 19,743,761
75 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) A Subscription-Based Information Technology Arrangement (SBITA) is defined as a contract tha conveys control of the right to use another party's information technology softwares, alone or in combination with tangible captial assets (underlying IT assets), as specified by the contract for a period greater than one year in an exchange or exchange-like transaction.

The City recognizes a SBITA liability and intangible asset in the government wide financial statement with an initial individual value of $10,000 or more.

At the commencement of a SBITA, the City initially measures the liability at the present value of payments expected to be made during the SBITA term. The related liability is reduced by the principal portion of SBITA payments. The related asset is initially measured at the amount of the SBITA liability, adjusted for the payments before the commencement of the SBITA, plus applicable direct costs. The SBITA asset is amortized on a straight-line basis over its useful life.

Key estimates related to the City's SBITA include, 1) the discount rate used to calculate the present value of SBITA payments, 2) the SBITA term, and 3) the SBITA payments. The discount rate used by City is its incremental borrowing of of 3.5%. The SBITA term includes noncancellable period and periods covered by an option to extend if it is reasonably certain that the City of SBITA vendor will exercise the option.

The City monitors changes in circumstance that would require a remeasurement of its SBITA assets and liabilities and will do so if certain changes occur that are expected to significantly affect these amounts. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long-term debt on the statements of net position. All SBITA were recognized as having an inception date of July 1, 2022 or after. On June 30, 2023 the City has two qualifying SBITA under GASB 96. None include an option to extend beyond the periods reported.

The following is a summary of leased asset activity for the year ended June 30, 2023:

Governmental activities:

Beginning
Balance Additions Retirements Total
Subscription assets $ 128,675 $ 146,931 $ - $ 275,606
Accumulated amortization - (86,113) - (86,113)
Total subscription assets, net 128,675 60,818 - 189,493 Subscription liability $ 103,969 $ 146,931 $ 75,538 $ 175,363 SBITA principal and interest payments to maturity are as follows:

Governmental Activities
Year ending Principal Interest Total
2024 $ 72,864 $ 5,836 $ 78,700
2025 75,325 3,375 78,700
2026 27,174 827 28,001
Totals $ 175,363 $ 10,038 $ 185,401
76 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT
Long-term debt transactions for the fiscal year ending June 30, 2023 are summarized below:

Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
Payable at June 30, 2022:

Bonds $ - $ - $ 120,697,778 $ 120,697,778 $ 120,697,778 Certificates of Participation - - - - -
Notes 3,547,669 2,719,697 - 2,719,697 6,267,366
Contracts/Loans - 326,262 - 326,262 326,262
Claims and Judgments Payable 71,321,000 - - - 71,321,000 Compensated Absences 20,113,006 2,340,663 - 2,340,663 22,453,669 Subtotal 94,981,675 5,386,622 120,697,778 126,084,400 221,066,075 New debt incurred:

Bonds - - - - -
Contracts/Loans - 9,187 - 9,187 9,187
Claims and Judgments Payable 6,908,000 - - - 6,908,000
Compensated Absences 13,804,774 1,543,194 - 1,543,194 15,347,968 Subtotal 20,712,774 1,552,381 - 1,552,381 22,265,155
Principal reductions:

Bonds - - 9,601,778 9,601,778 9,601,778
Certificates of Participation - - - - -
Notes 1,199,444 284,507 - 284,507 1,483,951
Compensated Absences 12,254,320 1,403,216 - 1,403,216 13,657,536 Subtotal 13,453,764 1,687,723 9,601,778 11,289,501 24,743,265 Payable at June 30, 2023:

Bonds - - 111,096,000 111,096,000 111,096,000
Notes 2,348,224 2,435,190 - 2,435,190 4,783,414
Contracts/Loans - 335,448 - 335,448 335,448
Claims and Judgments Payable 78,229,000 - - - 78,229,000 Compensated Absences 21,663,460 2,480,641 - 2,480,641 24,144,101 Total Payables $102,240,684 $ 5,251,279 $ 111,096,000 $ 116,347,279 $ 218,587,963 77 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT (continued)
Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
Due Within One Year:

Bonds $ - $ - $ 10,056,777 $ 10,056,777 $ 10,056,777
Certificates of Participation - - - - -
Notes 701,646 288,775 - 288,775 990,421
Total Long-Term Debt 701,646 288,775 10,056,777 10,345,552 11,047,198 Contracts/Loans - 335,449 - 335,449 335,449
Claims and Judgments Payable 13,284,000 - - - 13,284,000 Compensated Absences 2,606,264 411,964 - 411,964 3,018,228 Total Due Within One Year $ 16,591,910 $ 1,036,188 $ 10,056,777 $ 11,092,965 $ 27,684,875 Due in More Than One Year:

Bonds $ - $ - $ 101,039,222 $101,039,222 $101,039,222
Notes 1,646,578 2,146,415 - 2,146,415 3,792,993
Total Long-Term Debt 1,646,578 2,146,415 101,039,222 103,185,637 104,832,215 Claims and Judgments Payable 64,945,000 - - - 64,945,000 Compensated Absences 19,057,197 2,068,677 - 2,068,677 21,125,874 Total Due in More Than One Year $ 85,648,775 $ 4,215,092 $ 101,039,222 $105,254,314 $190,903,089 The liability for pension-related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred.

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

Long-term debt payable at June 30, 2023, was comprised of the following individual issues:

Bonds
General obligation bonds serviced by business-type activities:
$10,525,000 Wastewater Revenue Bonds 2020 Series A bonds - The proceeds from the sale of the Series 2020A Bonds, along with certain available moneys of the Enterprise, were to be used to redeem and decrease a portion of the outstanding 2015A Refunded Bonds. The original series from 2007 was refunded with these 2015 bonds, a portion of which remains outstanding. The financing was used to fund the costs of certain capital improvements at the City's wastewater and sewer collection, treatment and disposal system (specifically Treatment Plant #3) (This issue is serviced by the Wastewater Treatment Fund). $ 10,525,000 $145,500,000 Wastewater Revenue Bonds 2015 Series A - The 2007 Series A bonds were refunded in 2015 with a partial call of the outstanding principal amount of $156,750,000 as well as payment of the issuance costs. The proceeds of the original Series 2007A refunded bonds were used to finance a portion of certain capital improvements at the City's wastewater and sewage collection treatment and disposal system; interest rate of 5.00%. (This issue is serviced by the Wastewater Treatment Fund.) $ 86,110,000 Unamortized Bond Premium on Wastewater Revenue Bonds 14,461,000 Total Bonds $111,096,000
78 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT (continued)
Notes/Loans:

General obligation note serviced by Community Development Block Grant Fund (via the Municipal Debt Service Fund with Community Development Block Grant Entitlement): $800,000 HUD Section 108 Loan 2003 - due in annual principal installments of $24,000 to $61,000 commencing August 1, 2005 through August 2023; interest ranging from 1.61% to 4.76%. 61,000
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ):
$75,960 PG&E loan used for an energy efficient lighting upgrade at the City's Municipal Airport. The payment will be made in 89 monthly payments of $853.49 This loan contains no interest charges. 61,452
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $743,215 PG&E loan used for an energy efficient lighting upgrades to various City of Bakersfield Parks. The payment will be made in 100 monthly payments of $7,362.33. This loan contains no interest charges. 654,866
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$1,420,717 PG&E loan used for an energy efficient lighting upgrade throughout the City. The payments will be made in 80 monthly payments of $17,759. This loan contain no interest charges.
532,769
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund):
$1,979,307 PG&E loan used for an energy efficient lighting upgrade throughout the City. The payments will be made in 80 monthly payments of $24,138. This loan contain no interest charges.
796,551
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $126,730 PG&E loan used for an energy efficient lighting upgrade for the Parking Garage.

The payment will be made in 117 monthly payments of $1,083. This loan contains no interest charges.
97,485
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $32,285 PG&E loan used for an energy efficient lighting upgrade for the City Hall North.

The payment will be made in 110 monthly payments of $294. This loan contains no interest charges.
24,948
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $140,477 PG&E loan used for an energy efficient lighting upgrade for the Amphitheater.

The payment will be made in 107 monthly payments of $1,313. This loan contains no interest charges.
106,346
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund); $28,073 PG&E loan used for an energy efficient lighting upgrade for Grissom Park. The payment will be made in 48 monthly payments of $585. This loan contains no interest charges.
12,867
79 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT (continued)
Advances from other funds serviced by Business-Type Activities:
$3,000,000 interfund loan from the Wastewater Fund to the Refuse Fund. This loan was made to purchase a recycling center and will be repaid over 10 years. 2,435,190 Total general obligation notes/loans payable $ 4,783,474 Compensated Absences:

Governmental Activities $ 21,663,460
Business-Type Activities 2,480,641
Total Compensated Absences $ 24,144,101
A summary of the City's debt service requirements outstanding at June 30, 2023, is as follows:

Total
Government
Principal:

Governmental Activities $ 102,240,684
Business-Type Activities:

General Obligations 5,251,279
Revenue Obligations 111,096,000
Subtotal - Principal 218,587,963
Less: Claims and Judgments Payable included
above that bear no interest and have
no schedule of repayment terms 78,229,000
Less: Kern River Levee District Payable
included above that bears no interest and
has no schedule of repayment terms 335,449
Less: Unamortized premium for Wastewater
revenue bond 14,461,000
Less: Compensated Absences included above that bear
no interest and have no schedule of repayment terms 24,144,102 Total Principal with Scheduled
Repayment Terms 101,418,409
Interest on Obligations 24,255,695
Total Debt Service Requirements $ 125,674,104
80 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT (continued)
The annual requirement to amortize the principal and interest on long-term debt at June 30, 2023 is as follows:

Government-Type Activities
Year ending Principal Interest
Bonds Notes/Loans Total Bonds Notes/Loans Total
2024 $ - $ 701,646 $ 701,646 $ - $ 854 $ 854
2025 - 639,477 639,477 - - -
2026 - 454,659 454,659 - - -
2027 - 130,865 130,865 - - -
2028 - 129,135 129,135 - - -
2029-2033 - 292,442 292,442 - - -
Totals $ - $ 2,348,224 $ 2,348,224 $ - $ 854 $ 854
Business-Type Activities
Year ending Principal Interest
Bonds Notes/Loans Total Bonds Notes/Loans Total
2024 $ 8,450,000 $ 288,775 $ 8,738,775 $ 4,620,500 $ 34,362 $ 4,654,862 2025 8,920,000 293,106 9,213,106 4,186,250 29,998 4,216,248 2026 9,365,000 297,503 9,662,503 3,729,125 25,568 3,754,693 2027 9,885,000 301,965 10,186,965 3,247,875 21,072 3,268,947 2028 10,405,000 306,495 10,711,495 2,740,625 16,509 2,757,134 2029-2033 49,610,000 947,346 50,557,346 5,581,500 21,457 5,602,957 Totals $ 96,635,000 $ 2,435,190 $ 99,070,190 $ 24,105,875 $ 148,966 $ 24,254,841 Total Reporting Entity
Year Ending Principal Interest
Bonds Notes/Loans Total Bonds Notes/Loans Total
2024 $ 8,450,000 $ 990,421 $ 9,440,421 $ 4,620,500 $ 35,216 $ 4,655,716 2025 8,920,000 932,583 9,852,583 4,186,250 29,998 4,216,248 2026 9,365,000 752,162 10,117,162 3,729,125 25,568 3,754,693 2027 9,885,000 432,830 10,317,830 3,247,875 21,072 3,268,947 2028 10,405,000 435,630 10,840,630 2,740,625 16,509 2,757,134 2029-2033 49,610,000 1,239,788 50,849,788 5,581,500 21,457 5,602,957 Totals $ 96,635,000 $ 4,783,414 $101,418,414 $ 24,105,875 $ 149,820 $ 24,255,695 81 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 13 - PLEDGED REVENUES
The City has pledged net revenues generated by the Wastewater Enterprise Fund to repay a total of $ 96.6 million in wastewater revenue bonds series 2015A issued to finance a portion of the expansion and improvement of the City's w astewater and sewage collection and disposal system.

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

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

NOTE 14 - DEFERRED INFLOWS OF RESOURCES
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized deferred inflows of resources in the governmental fund financial statements. These items are an acquisition of net fund balance by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. Under the modified accrual basis of accounting, it is not enough that revenue has been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report deferred revenues in connection with receivables for revenues not susceptible to accrual, as deferred inflows of resources.

Deferred inflows of resources balances (non-lease related) for the year ended June 30, 2023 were as follows:

Balance at
General Fund
Code Enforcement Receivable $ 100,334
Federal Agencies (CARES) 31,832
County Agencies (Fire Fund) 2,209,231
General Fund Total 2,341,397
Transient Occupancy Fund 17,289,407
Capital Outlay Fund 1
Non-Major Funds
Neighborhood Stabilization 1
Total Governmental Funds $ 19,630,806
82 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 15 - FUND BALANCES
Fund balances for all major and non-major governmental funds as of June 30, 2023 are as follows (see Note 1 for description of the categories used):

General
Fund
Transient
Occupancy
Taxes Fund
Community
Development
Block Grant
Fund
Gas Tax
& Road
Fund
Covid Relief
Fund
Capital
Outlay
Fund
Nonspendable
Prepaids/Deposits $ 99,455 $ - $ - $ - $ - $ 779,865
Subtotal 99,455 - - - - 779,865
Restricted
Development Services grants - - - - - -
Development Services projects - - - - - -
Police services grants - - - - - -
Fire services grants - - - - - -
Covid relief - - - - 5,976,431 -
Public Works grants - - - 13,606,792 - -
Subtotal - - - 13,606,792 5,976,431 -
Committed
Legal & Professional services 272,879 - - - - 8,943,000 City facility construction & refurbishment projects - - - - - 11,032,606 Police service contracts 809,708 - - - - 316,786
Fire service contracts - - - - - 175,898
Public Works
improvement contracts - - - - - 2,707,491
Park improvement contracts - - - - - 918,280
Development Services contracts 267,759 - - - - 439,358
Cash basis reserve 51,137,226 - - - - -
Facility replacement reserve - - - - - 5,028,428
Economic/Community Development projects 6,224,526 - - - - 2,917,749 Appropriation for next
year's budget 39,379,385 - - - - -
Subtotal 98,091,483 - - - - 32,479,596
Assigned
Legal & Professional services 81,451 - - - - -
Police operations 296,597 - - - - -
Fire operations 130,907 - - - - -
Public Works - General
Services department 33,031 - - - - -
Highway and road projects - - - - - 16,640,500
Rolling equipment - - - - - 79,283,594
Tourism and promotional contracts 172,564 7,291,635 - - - - Park development projects 141,320 - - - - -
Economic/Community development projects 158,159 - - - - - Other miscellaneous agreements 119,899 - - - - -
Petty Cash accounts 29,170 - - - - -
Compensated absences 2,288,886 - - - - -
Public Safety and Vital Services 25,548,473 - - - - -
Subtotal 29,000,457 7,291,635 - - - 95,924,094
Unassigned 25,106,773 - (86,759) - - -
Total $ 152,298,168 $ 7,291,635 $ (86,759)$ 13,606,792 $ 5,976,431 $ 129,183,555 83 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 15 - FUND BALANCES (continued)
Park
Improvement
Fund
Transportation
Development
Fund
Redevelopment
Successor
Agency -
Housing
Fund
Non-Major
Governmental
Funds Total
Nonspendable
Prepaids/Deposits $ - $ - $ - $ - $ 879,320
Subtotal - - - - 879,320
Restricted
Development Services grants - - - 68,008 68,008
Development Services projects - - 2,805,667 - 2,805,667 Police services grants - - - 674,690 674,690
Fire services grants - - - 2,390,306 2,390,306
Covid relief - - - - 5,976,431
Public Works grants - - - - 13,606,792
Subtotal - - 2,805,667 3,133,004 25,521,894
Committed
Legal & Professional services - - - - 9,215,879
City facility construction & refurbishment projects - - - - 11,032,606 Police service contracts - - - - 1,126,494
Fire service contracts - - - - 175,898
Public Works
improvement contracts - 58,665,040 - - 61,372,531
Park improvement contracts 7,909,868 - - - 8,828,148
Development Services contracts - - - - 707,117
Cash basis reserve - - - - 51,137,226
Facility replacement reserve - - - - 5,028,428
Economic/Community Development projects - - - - 9,142,275 Appropriation for next
year's budget - - - - 39,379,385
Subtotal 7,909,868 58,665,040 - - 197,145,987
Assigned
Legal & Professional services - - - - 81,451
Police operations - - - - 296,597
Fire operations - - - - 130,907
Public Works - General
Services department - - - - 33,031
Highway and road projects - - - - 16,640,500
Rolling equipment - - - - 79,283,594
Tourism and promotional contracts - - - - 7,464,199
Park development projects - - - - 141,320
Economic/Community development projects - - - - 158,159 Other miscellaneous agreements - - - - 119,899
Petty Cash accounts - - - - 29,170
Compensated absences - - - - 2,288,886
Public Safety and Vital Services - - - - 25,548,473
Subtotal - - - - 132,216,186
Unassigned - - - - 25,020,014
Total $ 7,909,868 $ 58,665,040 $ 2,805,667 $ 3,133,004 $ 380,783,401 NOTE 16 - REIMBURSABLE DEVELOPER COSTS
Reimbursable developer costs of $1,702,002 at June 30, 2023 are included in customer deposits in the Domestic Water Fund which represent amounts due to developers for construction of water mainline extensions and certain other water facilities. For mainline extensions transferred to the City after June 30, 1982, the developers are to be reimbursed based on revenues generated from the water sales associated with these mainline extensions. The City is required to reimburse 2.5% of the cost of the extension on a yearly basis with the total amount to be reimbursed within 40 years. 84 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS
General
The City of Bakersfield provides pension benefits to eligible full-time employees in three separate plans: the Miscellaneous Plan, the Safety Fire Plan, and the Safety Police Plan, all of which are included in the Public Agency portion of the California Public Employees’ Retirement System (CalPERS).

Miscellaneous Plan
Plan Description
The City’s Miscellaneous Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of- living adjustments (COLA), and death benefits to plan members and beneficiaries. T he Miscellaneous Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. C alPERS issues a separate annual comprehensive financial report. Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.

Benefits Provided
The benefits provided through the CalPERS Miscellaneous Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Miscellaneous employee plan. Tier I is applicable to all employees hired before August 20, 2008 with a formula of 3% at age

60. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after August 20, 2008 and before January 1, 2013 with a formula of 2.7% at age 55. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of 2% at age 62, which is a result of the Public Employees' Pension Reform Act of 2013 (PEPRA). PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 52 with final compensation, subject to the PEPRA limit 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 Miscellaneous Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 8% of their salary while those employees under PEPRA (Tier III) will pay 6.25% of their salary. In addition, employees in Tier I and Tier II have 7.5% of their contribution picked-up by the City after five years of service.

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution.

As of June 30, 2022 (the measurement date), there are 1,140 active employees and 1,053 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2023, the employee contribution rate was 7.460 percent of annual pay, and the employer’s minimum contribution rate was 35.040 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
85 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
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.

Inflation Rate 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% [a]
Mortality [b]
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation. [b] Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements using Society of Actuaries 90% of scale MP-2016. For more details on this table, please refer to the December 2017 experience study report.

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

Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.

Therefore, the current 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 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 86 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
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 (1)
Assumed Asset
Allocation
Real Return
(1),(2)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
[1] An expected inflation of 2.30% used for this period. [2] Figures are based on the 2021 Asset Liability Management study.

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

Increase (Decrease)

MISCELLANEOUS PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2021 [a] $ 635,453,907 $ 525,769,434 $ 109,684,473 Changes Recognized for the
Measurement Period:
- Service Cost 11,936,949 - 11,936,949
- Interest on the Total
Pension Liability 44,607,191 - 44,607,191
- Changes of Benefit Terms - - -
- Changes of Assumptions 22,963,465 - 22,963,465
- Differences between Expected
and Actual Experience (1,146,174) - (1,146,174)
- Plan to Plan Movement - - -
- Contributions - Employer - 20,877,107 (20,877,107)
- Contributions - Employees - 4,920,321 (4,920,321)
- Net Investment Income - (39,818,161) 39,818,161
- Benefit Payments Including
Refund of Employee Contributions (33,517,292) (33,517,292) - - Administrative Expenses - (327,523) 327,523
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2021-22 44,844,139 (47,865,548) 92,709,687 Balance at June 30, 2022 [a] $ 680,298,046 $ 477,903,886 $ 202,394,160 [a] The plan fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self- insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report. 87 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate

MISCELLANEOUS PLAN
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90 %)
Discount Rate +
1%
(7.90%)
Plan Net Pension
Liability $ 293,941,953 $ 202,394,160 $ 126,823,852
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 3.9 years, which is obtained by dividing the total service years of 12,619 (the sum of remaining lifetimes of active employees) by 3,211 (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 $109,684,473. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense/(income) of $25,353,339 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 $25,466,772 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), $17,075,397 f or changes of assumptions, and $1,591,230 f or the differences between expected and actual experience, and $24,021,114 f or the net difference between projected and actual earning on pension plan investments. Deferred inflows of resources related to pensions of $(1,129,828), $0 f or changes in assumptions and $(1,129,828) f or differences between expected and actual experiences, and $0 f or the net difference between projected and actual earnings on pension plan investments.
88 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 $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.

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 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.

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.

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

Bakersfield City CouncilJanuary 22, 2025

Bakersfield City Council
January 22, 2025