ACFR 2024 - Financial statements.pdf — Finance, Economic Development and Jobs Committee, April 10, 2026

City of Bakersfield,
California
Annual
Comprehensive
Financial Report
For Fiscal Year Ended June 30, 2024

CITY OF BAKERSFIELD

CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2024
Prepared by the Department of Finance
Randy McKeegan, Finance Director
On the Cover
City Activities
From 2024-25

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2024
Table of Contents

INTRODUCTORY SECTION PAGE
Table of Contents................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................i Letter of Transmittal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................iv Organizational Chart................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................vii Elected and Administrative Officers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................viii

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................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................109 Budgetary Comparison Schedule for the General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................110 Budgetary Comparison Schedule for the Transient Occupancy Taxes Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................111 Budgetary Comparison Schedule for the Community Development Block Grant Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................111 Budgetary Comparison Schedule for the Gas Tax & Road Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................112 Budgetary Comparison Schedule for the Redevelopment Successor Agency - Housing Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................112 Defined Pension Plan - Schedules of Changes in Net Pension Liability and Related Ratios & Schedules of Plan Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................114 Other Post-Employment Benefits (OPEB) Plan - Schedule of Changes in City's Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................120 i

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2024
Table of Contents
PAGE
Supplementary Information:

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

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................137 Capital Projects Funds:

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget & Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................139 Non-Major Governmental Funds
Combining Balance Sheet................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................141 Combining Statement of Revenues, Expenditures and Changes in Fund Balances................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................143 Internal Service Funds:

Combining Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................146 Combining Statement of Activities and Changes in Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................147 Combining Statement of Cash Flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................148 Fiduciary Funds:

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

CITY OF BAKERSFIELD
Annual Comprehensive Financial Report
Year Ended June 30, 2024
Table of Contents
PAGE

STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................159 Changes in Net Position - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................161 Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................165 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................167 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................169 Principal Property Taxpayers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................170 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................171 Property Tax Rates/Direct and Overlapping Governments - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................173 Property Taxes Levies and Collections - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................175 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................176 Taxable Sales By Category Market Groups - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................177 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................179 Ratio of Outstanding Debt by Type - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................181 Direct and Overlapping Debt as of June 30, 2023................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................183 Computation of Legal Debt Margin................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................184 Pledged - Revenue Coverage - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................185 Demographic and Economic Statistics - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................186 Principal Employers - Current Year and Nine Years Ago................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................187 Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................189 Property Value, Construction and Bank Deposits - Last Ten Calendar Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................191 Operating Indicators by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................193 Capital Asset Statistics by Function - Last Ten Fiscal Years................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................195 Schedule of Insurance in Force................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................197 iii
March 31 2026
Honorable Mayor, City Council, City Manager and Citizens of Bakersfield:

The City of Bakersfield’s (“City”) Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024 is now available for your review and analysis. This report is prepared in accordance with the City’s Municipal Code, Section 2.08.020F, which requires a complete financial statement and report at the close of each fiscal year. The Finance Department prepared this report and assumes responsibility for the accuracy, completeness, and fairness of its presentation, including all disclosures.

Because the cost of internal controls should not exceed the anticipated benefits, the objective is to provide reasonable assurance rather than absolute assurance that the financial statements are free of material misstatement. To the best of my knowledge and belief, the enclosed data are accurate in all material respects and are presented fairly, reflecting the financial position and results of operations of the City.

The accompanying financial statements have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP) as pres
cribed by the Governmental Accounting Standards Board
(GASB).Brown Armstrong Accountancy Corporation, a licensed firm of certified public accountants, performed the independent audit of the City’s financial statements. Based on their audit, they issued an unmodified (“clean”) opinion, concluding that the City’s financial statements for the fiscal year ended June 30, 2024 are presented fairly in conformity with GAAP.

In addition, the City undergoes a federally mandated Single Audit eac h year, which evaluates
compliance with federal grant requirements. This review also includes an assessment of the City’s internal controls and legal compliance. These reports are available in the City’s separately issued Single Audit Report, which can be accessed via the City’s website.

GAAP further requires that management provide a Management’s Discussion and Analysis (MD&A) to accompany the financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A begins on page 5 of the financial section.

GENERAL BACKGROUND
The City of Bakersfield is located approximately 100 miles north of Los Angeles in the southern San Joaquin Valley. Bakersfield is the county seat of Kern County and encompasses an incorporated area of 151 square miles with an estimated population of 419,238 as of January 1, 2025.

The City operates under a Council-Manager form of government, where policymaking authority is vested in an elected Mayor and a seven-member City Council. The City provides a wide range of municipal services, including:
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 Fire and Police Protection
 Streets and Infrastructure Maintenance
 Planning and Building Services
 Economic and Community Development
 Parks and Recreation Services
 River & Agricultural Water and Domestic Water Services  Municipal Airpark – General Aviation
 Refuse Collection and Wastewater Treatment
This report also includes the financial activities of the City and the Bakersfield Successor Agency, as detailed in the notes to the financial statements.

MAJOR INITIATIVES
The City continues to invest in key priorities that improve quality of life, enhance public safety, and strengthen financial infrastructure:

Homelessness Initiatives
The Brundage Lane Navigation Center continues to provide bridge housing and supportive services for individuals experiencing homelessness. Since opening in October 2020, the center has served more than 1,550 unique clients, helped place over 420 individuals into permanent housing, and continues to connect residents with healthcare, job training, and mental health resources.

Downtown and Neighborhood Clean-Up Efforts
Rapid response teams in Development Services and Recreation & Parks remain active, addressing encampments and quality-of-life concerns. Staffing for these teams increased in 2024 to meet growing service demands, and the City continues funding private clean-up services in Downtown and Old Town Kern.

Enterprise Resource Planning (ERP) Modernization
In 2024, the City entered the second phase of its ERP system replacement project. Implementation was completed for the financial reporting and budget modules while the payroll segment is expected to be completed in late 2026. These systems are being implemented improving efficiency, financial reporting, and service delivery across all City departments.

FACTORS AFFECTING FINANCIAL CONDITION
Economic Outlook
Funds from the American Rescue Plan Act (ARPA) awarded in 2021 continue to support economic recovery, community assistance programs, and City operations. The period of availability for ARPA funding extends through fiscal year 2024-25, enabling ongoing investment in key services and infrastructure.

Revenue Trends:

Property Tax: Grew by 7.4% in FY 2023-24 and is projected to rise by 4% in FY 2024-25.

Sales Tax: The Public Safety and Vital Services (PSVS) generated roughly $102 million in 2024-25 but the City has been notified by the California Department of Tax & Fee Adminstration (CDTFA) that collections in prior years have included erroneous revenue that should have been reported to the County. Ongoing revenue is expected to be under $100 million annually. These revenue continue to support critical public safety and quality-of-life priorities. Growth in both PSVS and Bradley-Burns sales tax revenue are expected to remain relatively flat in upcoming years, with Bradley-Burns revenue estimated at $97 million annually.
v
Pension & Retirement Costs
Retirement costs remain a significant budgetary pressure. CalPERS earnings over the last five years have been 6.7%, 4.7%, 21.3%, (6.1%), and 5.8% ultimately playing a part in an increase to the net pension liability of $37 million from the prior year. The City continues to proactively fund its Section 115 Pension Rate Stabilization Fund and Other Post-Employment Benefits (OPEB) trust, maintaining Bakersfield’s position as one of the few California municipalities making progress toward fully funding long-term obligations.

Reserves & Fiscal Stability
Through effective fiscal management, the City has maintained a General Fund rainy-day reserve of $56 million as of June 30, 2024, in accordance with Resolution 91-19. This reserve strengthens the City’s ability to navigate future economic challenges.

OTHER INFORMATION
Independent Audit – Brown Armstrong continues to serve as the City’s independent auditor under a two- year engagement approved by the City Council.

ACKNOWLEDGMENTS
The preparation of this report reflects the dedicated efforts of the Finance Department staff. I extend my sincere appreciation to every team member who contributed to its completion. I also wish to thank the Mayor, City Council, and City Manager for their continued leadership and support in maintaining Bakersfield’s strong financial position and commitment to service excellence.

Randy McKeegan
Finance Director
vi
vii

CITY OF BAKERSFIELD
June 30, 2024
City Council
Karen K. Goh .....................................................................................................................Mayor Eric Arias ........................................................................................................Member/Ward 1 Andrae Gonzales ...................................................................................................Member/Ward 2 Ken Weir ............................................................................................................Member/Ward 3 Bob Smith ........................................................................................................... Member/Ward 4 Bruce Freeman ...................................................................................................Member/Ward 5 Larry Koman ......................................................................................................Member/Ward 6 Manpreet Kaur .................................................................................................Vice Mayor/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 Kevin Albertson ..........................................................................................................Fire Chief Christi Tenter ....................................................................................Human Resources Director Greg Terry ..............................................................................................................Police Chief Zachary Meyer......................................................................................... Public Works Director Darin Budak ....................................................................................Recreation & Parks Director Greg Pronovost.............................................................................Technology Services Director Kristina Budak ....................................................................................Water Resources Manager viii

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 24, 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, 2024, 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 as reported in the Defined Pension Plan – Schedules of Changes in the Net Pension Liability and Related R atios and the Schedule of Plan Contributions, and the Other Pos temployment Benefits (OPEB) Pla n Schedule of Changes in the City’s Net OPEB Liability and Related Ratios as well as its Schedule o f OPEB Contributions as reported in the Table of Contents are presented to supplement the basic financi al 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 op erational, economic, or historical context.

We have applied certain limited procedures to the required supp lementary information in accordance with auditing standards generally accepted in the United States of A merica, which consisted of inquiries of management about the methods of preparing the information and c omparing the information for consistency with management’s responses to our inquiries, the b asic financial statements, and other knowledge we obtained during our audit of the basic financial s tatements. 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 March 31, 2026, 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
March 31, 2026
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, 2024. 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 $2.4 billion (net position).  The City’s total net position increased by $74.2 million over the prior fiscal year. This increase is broken down with changes to the following components of net position; a $2.1 m illion increase i n restricted net position, a $32.6 million increase i n unrestricted net position, and a $36.9 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 $412.0 million, an increase o f $35.1 million in comparison with the prior year. Amounts available for spending include restricted, committed, assigned and unassigned fund balances. Of this amount, $28.3 million is restricted by law or externally imposed requirements, $210.8 million is committed for specific purposes, $123.8 million assigned and $48.8 is unassigned and available for appropriations.  Total available fund balance for the General Fund increased $6.7 million to $159.0 million, which equates to 44.5% of total General Fund expenditures for the year.
 The City's long-term debt showed a decrease of $11.0 million during the current fiscal year.

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

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

GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements give readers a comprehensive overview of the City’s finances, similar to the presentation used in the private sector. Prepared on the accrual basis of accounting with an economic resources measurement focus, these statements separately report governmental and business-type activities. As required by Governmental Accounting Standards Board (GASB) guidance, certain interfund transactions, payables, and receivables are eliminated to avoid double counting.

The Statement of Net Position and the Statement of Activities present the City’s financial status and the results of operations for the fiscal year. They include all assets, deferred outflows, liabilities, and deferred inflows of resources, recognizing all revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Together, these statements show the City’s net position—the difference between total assets and deferred outflows versus total liabilities and deferred inflows—which serves as a key indicator of financial health. Trends in net position, along with changes in the City’s property- and sales-tax bases, help gauge whether the overall financial condition is improving or declining.

Fiduciary funds—such as private-purpose trusts, pension trusts, and custodial funds—are excluded because their resources are not available to support City programs.

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

Governmental activities - The majority of the City's basic services are reported in this category, including the General Government, Police, Fire, Public Works, Recreation & Parks, Development Services and Economic & Community Developement. 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 - T he 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 Financial Statements are provided to explain the differences created by the integrated approach. 6 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Governmental Funds - Most 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 - The 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 109 of this report. 7 CITY OF BAKERSFIELD
Management's Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As previously noted, net position may serve over time as a useful indicator of a government’s financial position. In the current year, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.3 billion at the close of the reporting period, which is a $74.2 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, $43.6 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
2023 a nd 2024. 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
2023 2024 2023 2024 2023 2024
Assets
Current and other assets $ 594,651 $ 608,678 $ 203,738 $ 233,165 $ 798,389 $ 841,843 Capital assets (net) 1,398,966 1,436,861 875,654 868,504 2,274,620 2,305,365 Total assets 1,993,617 2,045,539 1,079,392 1,101,669 3,073,009 3,147,208 Deferred Outflows of Resources 173,550 185,854 21,506 19,050 195,056 204,904 Liabilities
Long-term liabilities
outstanding 598,658 637,477 166,982 154,538 765,640 792,015 Other liabilities 133,695 117,853 30,667 35,204 164,362 153,057 Total liabilities 732,353 755,330 197,649 189,742 930,002 945,072 Deferred Inflows of Resources 14,873 13,635 5,648 4,352 20,521 17,987 Net Position
Net investment in capital assets 1,395,503 1,429,437 756,450 759,348 2,151,953 2,188,785 Restricted 21,358 23,409 20,200 20,200 41,558 43,609
Unrestricted 3,081 9,583 120,952 147,077 124,033 156,660 Total Net Position $ 1,419,942 $ 1,462,429 $ 897,602 $ 926,625 $ 2,317,544 $ 2,389,054 Governmental Activities – Total assets for governmental activities increased by $51.9 million, with current and other assets in governmental activities increasing by $14.0 million and a capital assets increase of $37.9 million. Total liabilities increased by $23.0 million, with other liabilities decreasing by $(15.8) million and long-term liabilities increasing by $38.8 million. 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 $42.5 million increase in governmental activities total net position, unrestricted net position increased by $6.5 million, net investment in capital assets increased by $33.9 million and restricted net position increased by $2.1 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 is not significant and the overall changes in that amount are not w orth further investiacation or explanation.

Business-Type Activities – Total assets for business-type activities increased by $22.3 million, with current and other assets increasing by $29.4 million and a $7.2 million decrease in capital assets. Total liabilities decreased by $7.9 million, with other liabilities increasing by $4.5 million and long-term liabilities also decreasing by $12.4 million. Total net position for business- type activities increased b y $29.0 m illion. O f that amount, net investment in capital assets increased b y $2.9 m illion.

Restricted net position remained constant and unrestricted net position increased by $26.1 million. The overall increase in net position is the result in the the community service operations, specifically in Wastewater, Water, and Refuse activities.

Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2023 and 2024. The City’s total revenues of $736.9 million were more than expenses of $655.3 million for an increase in net position before transfers & other items of $81.6 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
2023 2024 2023 2024 2023 2024
Revenues:

Program revenues:

Charges for services $ 67,239 $ 71,928 $ 154,422 $ 174,071 $ 221,661 $ 245,999 Operating grants and
contributions 46,450 34,429 6,578 8,565 53,028 42,994
Capital grants and
contributions 60,047 51,005 8,694 11,644 68,741 62,649
Total program revenues 173,736 157,362 169,694 194,280 343,430 351,642 General revenues:

Taxes:

Property taxes 103,660 111,319 - - 103,660 111,319
Sales taxes 199,751 203,938 - - 199,751 203,938
Other taxes 1,497 1,513 - - 1,497 1,513
Intergovernmental:

Intergovt, unrestricted 419 504 - - 419 504
Grants and contributions not
restricted to specific programs 30,202 31,012 - - 30,202 31,012 Investment earnings 7,049 24,198 3,998 9,551 11,047 33,749 Miscellaneous 2,705 3,192 - - 2,705 3,192
Gain on sale of property 2 5 51 44 53 49
Total Revenues 519,021 533,043 173,743 203,875 692,764 736,918 9 CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Changes in Net Position
(in thousands)
Governmental Activities Business-Type Activities Total
2023 2024 2023 2024 2023 2024
Expenses:

Governmental:

General government 36,776 47,234 - - 36,776 47,234
Public safety - Police 157,182 185,288 - - 157,182 185,288 Public safety - Fire 58,352 67,982 - - 58,352 67,982
Public works 109,900 101,645 - - 109,900 101,645
Recreation and parks 39,782 41,188 - - 39,782 41,188
Development services 14,367 18,469 - - 14,367 18,469
Economic/Community dev. 31,828 23,074 - - 31,828 23,074 Interest on long-term debt (3) 3 - - (3) 3
Subtotal - Governmental 448,184 484,883 - - 448,184 484,883 Business-Type:

Wastewater treatment - - 44,261 47,640 44,261 47,640
Refuse collection - - 65,669 72,389 65,669 72,389
Agricultural water - - 7,322 6,580 7,322 6,580
Domestic water - - 39,548 42,907 39,548 42,907
General aviation - - 488 583 488 583
Offstreet parking - - 330 322 330 322
Subtotal - Business-Type - - 157,618 170,421 157,618 170,421 Total expenses 448,184 484,883 157,618 170,421 605,802 655,304 Change in net position before
transfers & other items 70,837 48,160 16,125 33,454 86,962 81,614 Transfers (2,771) (3,002) 144 (4,429) (2,627) (7,431)
Changes in net position 68,066 45,158 16,269 29,025 84,335 74,183 Net Position - Beginning of
Year 1,382,223 1,419,942 887,855 897,602 2,270,078 2,317,544 Net Position - End of Year $ 1,450,289 $ 1,465,100 $ 904,124 $ 926,627 $ 2,354,413 $ 2,391,727 Governmental Activities – Operations of the City's governmental activities for the fiscal year resulted in a $45.2 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 $233.5 million and $40.7 million, respectively . 10 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Total expenses in Governmental Activities had a net increase of $36.7 million from the previous fiscal year for an overall 8.2% increase. That increase is primarily due to increases in personnel costs, including a cost of living pay increase for all employees and actuarially determined increases to pension contributions to the California Public Employees' Retirement System (CalPERS). The cost escalations inpacted Public Safety cost the most, with increases of $37.7 million. 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 $316.8 million or 59.2% of total revenues. The second largest source of revenue is charges for services which amounts to $71.9 million or 13.5% 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 $51.0 m illion or 9.5% of total revenues. Grant revenue can be dependent on programs operations and reimbursable activities.

Governmental Activities Revenues increased $14.0 million which is a 2.7% increase compared to the previous fiscal year to a total of $533.0 million. That is not considered a significant change but is an indication of continued slowdown in the general revenue growth local government have seen since even before the pandemic. The City has been working to prepare budgets conservatively with that in mind and will have to continue to watch revenue trends going forward.

General Revenues - While there was a slight decrease in general revenue, Property Tax revenues increased by 7.4%, or $7.7
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 by $9.0 million 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 decreased $12.0 million as less funds were utilized related to ARPA grants 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 $29.0 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 $6.8 million and Refuse Collection by $13.7 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 $4.7 million and River & Agricultural Water by $8.3 million. Total business-type expenses increased by $12.8 million (8.1%) 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 85.4% of total revenues. Capital grants and contributions is the second largest revenue source at 5.7% of total revenues. 13 CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type activities program revenues increased by $24.6 million, 14.5%, 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 $ 412.0
million, an increase of $35.1 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, $0.4 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, $28.3 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
$22.0 million for the purpose of the fund (i.e., Gas Tax and Road projects), (2) $ 3.1 million from the Redevelopment Successor Agency Housing Fund for projects and (3) $3.0 million for traffic safety projects.  Committed fund balance, $210.8 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 $72.7 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 $54.0 million and $32.0 million for appropriations for next year’s budget.
 Assigned fund balance, $123.8 million, for funds set aside by management for specific purposes. Amounts include $91.3 million set aside for capital projects and $12.3 million for the fund purposes related to transient occupancy fees, and $32.0 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, $48.8 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 4.4%, or $6.7 million from $152.3 million to $159.0 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 receipts. Other general revenues will continue to be monitored to understand the effect ongoing slowdowns in growth will have on operational needs.
 Total expenditures increased by $43.0 million (a 13.7% 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 12.4%, or $28.4 million, to $253.0 million with the following significant changes:
 The Transient Occupancy Tax (TOT) Fund increased b y $5.0 m illion from $7.3 m illion to $12.3 m illion. The amounts in this fund cover both the collection and disbursement of 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 $2.3 million from $129.2 million to $131.5 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 $91.3 m illion is assigned and available for use at management’s discretion. The resulting increase shows that expenditures were in line with projected revenues (which included significant transfers from the PSVS fund for ongoing CIP projects).
 The Park Improvement Fund increased b y $2.9 m illion. Of this fund balance amount, the full amount of $10.8 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 $11.3 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 $576.4 million at the end of the current year, an increase of $11.8 million over the prior year. Total net position includes $497.9 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 $58.4 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.

The Refuse Collection Fund has total net position of $24.0 million at the end of the current year, an increase of $10.4 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 $

39.1 million at the end of the current year, an increase of $ 8.6 million over the prior year. Total net position includes $20.4 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $18.7 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 $
266.9 million at the end of the current year, a decrease of $2.7 million over the prior year. Total net position includes $ 219.9 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $47.0 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 $

11.5 m illion at the end of the current year, a decrease o f $102,527 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 $15,100 compared to the prior year. T otal net position includes $0.5 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 - T he 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 $26.1 million. Of this amount, a $33.2 million increase relates to Governmental Activities and a $7.2 million decrease that relates to Business-Type Activities. Depreciation expense of $(111.3) million reduced capital assets by this amount.

These financial statements include infrastructure assets constructed or acquired through fiscal year 2023-24.

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 $ 191.4 million. This figure includes over $- 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
2023 2024 2023 2024 2023 2024
Land and water storage rights $ 450,650 $ 453,524 $ 24,439 $ 24,576 $ 475,089 $ 478,100 Depreciable buildings, property,
equipment and infrastructure, net 736,443 786,183 805,373 801,896 1,541,816 1,588,079 Construction in progress 210,823 191,448 14,366 10,555 225,189 202,003 Non-amortizable intangible assets - - 31,477 31,477 31,477 31,477 Total Capital Assets $ 1,397,916 $ 1,431,155 $ 875,655 $ 868,504 $ 2,273,571 $ 2,299,659 17 CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Outstanding Debt
Balance Incurred Satisfied Balance
June 30, 2023 or Issued or Matured June 30, 2024
Governmental Activities
Notes Payable $ 2,348,224 $ - $ (701,656) $ 1,646,568
Total governmental activities $ 2,348,224 $ - $ (701,656) $ 1,646,568 Business-Type Activities
Revenue Bonds Payable $ 111,096,000 $ - $ (10,056,778) $ 101,039,222 Notes Payable 2,435,190 - (288,775) 2,146,415
Total business-type activities $ 113,531,190 $ - $ (10,345,553) $ 103,185,637 Total Debt $ 115,879,414 $ - $ (11,047,209) $ 104,832,205 * 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 $ 104.8 million. The City’s total debt decreased by a net amount of $11.0 million during the current fiscal year. This amount is the result of normal debt maturities.

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

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

More detailed information regarding capital asset and long-term debt activity can be found in the related notes to the financial statements. See Note 5 for capital assets and Note 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 $3.0 million and an increase in appropriations of $289.8 million. Significant budgetary amendments (changes) are summarized as follows:
• $289.8 million increase in various resources and appropriati ons due to revenues associated with open purchase orders at the end of the previous fiscal year and prior year appropriations not spent but carried forward to this fiscal year.

The final amended revenue estimate budget fi gures in the General Fund were lower th an actual revenue by $3.1 million and appropriations were higher than actual expenditures by $83.1 million. Significan t differences between budget and actual amounts are as follows:
• $11.9 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 ma de 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. • $15.6 million less than budgeted in inter governmental revenue which is due prim arily 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 miscellaneous income was $8.1 million mo re due in interest income. The City budgets a conservative amount for investment income due to poten tial market fluxuations. The currents rates of return on deposits have been higher that in prior years.
• There was a $1.1 million variance of appropriations under actual expenditures in Recr eation and Parks operations.

This overage is primarily related to overtime costs a nd utility costs coming in sli ghtly above the budgeted amounts.

The department will be looking at these expenditure lines in subsequent years to properly budget for escalated costs. • 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 unfille d 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 2024-25 were:

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

2. Sales and use tax revenue is projected to show an in crease of 2% in the 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 retirem ent 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 2024-24 budget include the following:

Police Department – The Police Department’s operating budget has increased from fiscal year 2023-24 by 6%, totaling $10.1 million. This increase is primarily attributable to increased costs related to the PSVS plan to increase the number of officer s 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 operati ng budget had and increase of just under 11% from fiscal year 2023-24 totaling $6.4 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 increas ed by $9.5 million, or 6%, from fiscal year 2023-24.

The increase was also due to co st-of-living adjustments and a rise in retiremen t rates causing increases in salaries & benefit costs.

Development Services – The Development Services De partment’s operating budget increas ed from fiscal year 2023-24 by 1%, an increase of $1.2 million This increase is due to cost-of-living adjustments and a rise in retirement rates.

Economic & Community Development – The Economic & Community Developm ent Department’s operating budget has decreased from fiscal year 2023-24 by 1% , 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 Depa rtment’s operating budget has increased from fiscal year 2023-24 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, taxpa yers, customers, investors and creditors with a general overvie w of the City's finances and to show the City's accountability for the money it receives. Qu estions concerning any of the information provided in this report or requests for add itional financial information can be sent via e-mail to:
[email protected]. Formal written requests should be addr essed 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, 2024
Assets
Governmental
Activities
Business-Type
Activities Total
Current assets:

Cash and investments $ 490,192,949 $ 201,346,084 $ 691,539,033 Accounts receivable, net 29,947,461 14,051,136 43,998,597 Interest receivable 5,293,699 2,062,163 7,355,862
Advances to other funds - current - 293,106 293,106
Due from other governmental agencies 63,059,929 1,795,002 64,854,931 Internal balances (7,995,494) 7,995,494 -
Prepayments and inventories 1,941,436 - 1,941,436
Total current assets 582,439,980 227,542,985 809,982,965 Noncurrent assets:

Capital assets:

Land 453,523,894 24,576,036 478,099,930
Depreciable capital assets, net 786,183,201 801,895,954 1,588,079,155 Construction in progress 191,447,816 10,555,177 202,002,993 Intangible assets - 31,476,906 31,476,906
Lease assets, net of amortization 2,542,776 - 2,542,776 Subscription assets, net of amortization 3,163,719 - 3,163,719 Land held for resale 1,198,744 - 1,198,744
Advances to other funds - 1,853,309 1,853,309
Lease receivable 349,709 3,744,888 4,094,597
Notes/loans receivable 24,689,453 23,415 24,712,868
Total noncurrent assets 1,463,099,312 874,125,685 2,337,224,997 Total assets 2,045,539,292 1,101,668,670 3,147,207,962
Deferred Outflows of Resources:

Deferred pensions (See Note 17) 167,292,181 11,793,246 179,085,427 Deferred OPEB (See Note 18) 18,562,096 1,208,064 19,770,160 Debt issuance - 6,049,116 6,049,116
Total deferred outflows of resources 185,854,277 19,050,426 204,904,703 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 26,116,786 12,825,149 38,941,935 Customers' deposits - 8,858,996 8,858,996
Advances from grantors and third parties 70,973,439 1,185,539 72,158,978 Long-term debt 639,477 10,526,778 11,166,255
Advances from other funds - current - 293,106 293,106
Lease & subscription liability 2,011,884 782,515 2,794,399 Kern River Levee District - 384,935 384,935
Claims and judgments payable 15,660,000 - 15,660,000
Compensated absences payable 2,387,844 347,258 2,735,102 Deferred revenue 63,654 - 63,654
Total current liabilities 117,853,084 35,204,276 153,057,360 Noncurrent liabilities:

Long-term debt 1,007,091 90,512,444 91,519,535
Advances from other funds - 1,853,309 1,853,309
Lease & subscription liability 2,612,812 13,383,520 15,996,332 Claims and judgments payable 72,395,000 - 72,395,000
Net other post-employment benefits liability 21,328,887 1,388,134 22,717,021 Compensated absences payable 20,220,465 2,360,463 22,580,928 Net pension liability 519,912,419 45,039,702 564,952,121 Total noncurrent liabilities 637,476,674 154,537,572 792,014,246 Total liabilities 755,329,758 189,741,848 945,071,606
Deferred Inflows of Resources:

Deferred pensions (See Note 17) 3,302,699 235,576 3,538,275 Deferred OPEB (See Note 18) 10,006,443 651,244 10,657,687 Deferred Leases (See Note 10) 325,682 3,465,599 3,791,281 Total deferred inflows of resources 13,634,824 4,352,419 17,987,243 Net Position:

Net investment in capital assets 1,429,436,704 759,347,931 2,188,784,635 Restricted: Capital improvements 23,409,163 20,200,000 43,609,163 Unrestricted 9,583,120 147,076,898 156,660,018
Total net position $ 1,462,428,987 $ 926,624,829 $ 2,389,053,816 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, 2024
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions Total
Primary Government:

Governmental activities:

General government $ 47,233,931 $ 7,151,429 $ 17,196,367 $ - $ 24,347,796 Public safety - Police 185,288,008 3,491,353 5,656,669 - 9,148,022 Public safety - Fire 67,982,220 10,584,125 - - 10,584,125 Public works 101,644,764 19,848,254 6,712,682 34,398,602 60,959,538 Recreation & parks 41,188,369 22,927,301 24,350 7,158,165 30,109,816 Development services 18,469,442 7,925,583 502,322 65,144 8,493,049 Economic /Community development 23,074,084 - 4,336,528 9,382,875 13,719,403 Interest on long-term debt 3,187 - - - -
Total governmental activities 484,884,005 71,928,045 34,428,918 51,004,786 157,361,749 Business-type activities:

Wastewater treatment 47,639,616 39,525,137 7,735,463 7,196,081 54,456,681 Refuse collection 72,388,867 85,954,989 172,225 - 86,127,214 River and agricultural water 6,580,440 14,889,184 - 16,367 14,905,551 Domestic water 42,907,079 33,101,726 657,257 4,431,212 38,190,195 General aviation 582,783 403,679 - - 403,679
Offstreet parking 322,398 196,013 - - 196,013
Total business-type activities 170,421,183 174,070,728 8,564,945 11,643,660 194,279,333 Total primary government $ 655,305,188 $ 245,998,773 $ 42,993,863 $ 62,648,446 $ 351,641,082 General Revenues:

Taxes:

Property taxes
Sales and use tax
Other taxes
Intergovernmental, unrestricted
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Gain on sale of property
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year as previously stated
Error correction
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
$ (22,886,135) $ - $ (22,886,135)
(176,139,986) - (176,139,986)
(57,398,095) - (57,398,095)
(40,685,226) - (40,685,226)
(11,078,553) - (11,078,553)
(9,976,393) - (9,976,393)
(9,354,681) - (9,354,681)
(3,187) - (3,187)
(327,522,256) - (327,522,256)
- 6,817,065 6,817,065
- 13,738,347 13,738,347
- 8,325,111 8,325,111
- (4,716,884) (4,716,884)
- (179,104) (179,104)
- (126,385) (126,385)
- 23,858,150 23,858,150
$ (327,522,256) $ 23,858,150 $ (303,664,106)
$ 111,318,789 $ - $ 111,318,789
203,937,875 - 203,937,875
1,512,943 - 1,512,943
504,428 - 504,428
31,012,748 - 31,012,748
24,197,939 9,550,550 33,748,489
3,192,150 - 3,192,150
4,930 43,580 48,510
(3,001,734) (4,429,285) (7,431,019)
372,680,068 5,164,845 377,844,913
45,157,812 29,022,995 74,180,807
1,419,941,624 897,601,834 2,317,543,458
(2,670,449) - (2,670,449)
1,417,271,175 897,601,834 2,314,873,009
$ 1,462,428,987 $ 926,624,829 $2,389,053,816
25 26
Governmental Fund Financial Statements
27 CITY OF BAKERSFIELD
Balance Sheet
Governmental Funds
June 30, 2024
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Assets:

Cash and investments $ 119,051,692 $ 3,324,168 $ - $ 11,671,514 Accounts receivable, net 1,642,945 9,375,306 14,666,503 176,641 Interest receivable 1,493,274 88,888 1,041 165,231
Due from other governmental agencies 46,791,529 - 4,710,396 10,496,962 Due from other funds 3,474,265 - - -
Notes/loans receivable - - 2,596,923 -
Lease receivable 349,709 - - -
Prepaid items 61,423 - - -
Total assets $ 172,864,837 $ 12,788,362 $ 21,974,863 $ 22,510,348 Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable $ 6,895,639 $ 496,220 $ 1,104,040 $ 560,030 Due to other governmental agencies 2,387,032 - - -
Due to other funds - - 3,474,265 -
Advances from grantors and third parties 2,331,073 - - - Total liabilities 11,613,744 496,220 4,578,305 560,030
Deferred Inflows of Resources:

Lease related items 325,682 - - -
Deferred revenue 1,899,808 - 17,262,302 -
Total Deferred Inflows of Resources 2,225,490 - 17,262,302 - Fund Balances:

Nonspendable 100,147 - - -
Restricted - - - 21,950,318
Committed 90,130,909 - - -
Assigned 20,022,472 12,292,142 134,256 -
Unassigned 48,772,075 - - -
Total fund balances 159,025,603 12,292,142 134,256 21,950,318 Total liabilities, deferred inflows of
resources, and fund balances $ 172,864,837 $ 12,788,362 $ 21,974,863 $ 22,510,348 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
$ 46,199,163 $ 133,757,867 $ 14,492,499 $ 69,434,322 $ 3,053,461 $ 3,362,929 $ 404,347,615 - 112,005 - - 215 3,972,177 29,945,792
605,101 1,235,388 153,726 722,255 32,785 46,428 4,544,117 707,842 275,954 - - - 74,340 63,057,023
- - - - - - 3,474,265
- - - - 22,092,530 - 24,689,453
- - - - - - 349,709
- 306,847 - - - - 368,270
$ 47,512,106 $ 135,688,061 $ 14,646,225 $ 70,156,577 $ 25,178,991 $ 7,455,874 $ 530,776,244 $ 1,107,203 $ 4,154,846 $ 3,847,560 $ 168,999 $ - $ 266,110 $ 18,600,647 - - - - - - 2,387,032
- - - - - - 3,474,265
46,404,903 - - - 22,092,529 144,933 70,973,438
47,512,106 4,154,846 3,847,560 168,999 22,092,529 411,043 95,435,382 - - - - - - 325,682
- 46,606 - - - 3,817,533 23,026,249
- 46,606 - - - 3,817,533 23,351,931
- 306,847 - - - - 406,994
- - - - 3,086,462 3,227,298 28,264,078
- 39,833,061 10,798,665 69,987,578 - - 210,750,213
- 91,346,701 - - - - 123,795,571
- - - - - - 48,772,075
- 131,486,609 10,798,665 69,987,578 3,086,462 3,227,298 411,988,931 $ 47,512,106 $ 135,688,061 $ 14,646,225 $ 70,156,577 $ 25,178,991 $ 7,455,874 $ 530,776,244 29 CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 411,988,931 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 2,839,353,191
Ending accumulated depreciation (1,480,586,247) 1,358,766,944 Right to use lease asset (net of amortization). 2,542,776 Subscription Assets (net of amortization). 1,191,501
Land held for resale is not a current financial resource and is not reported in the Governmental Funds. 1,198,744
Deferred outflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds. 164,167,478
Deferred outflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds. 18,178,075 Deferred inflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds. (3,133,357)
Deferred inflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds. (9,799,426) 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. (13,181) Unavailable revenue and other resources not available to liquidate liabilities of the current period are not recognized in the Governmental Funds. 22,962,595
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.
50,556,610
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 (1,646,567)
Compensated absences payable (21,882,927)
Lease payable (2,614,415)
Subscription payable (1,036,042)
Unfunded post-employment benefits (20,887,626)
Unfunded pension benefits (508,111,126) (556,178,703)
Net Position of Governmental Activities $ 1,462,428,987 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, 2024
General
Fund
Transient
Occupancy
Taxes
Community
Development
Block Grant
Gas Tax
& Road Fund
Revenues:

Taxes $ 327,968,110 $ 12,123,813 $ - $ -
Licenses and permits 4,008,237 - - -
Intergovernmental 13,822,206 - 11,186,729 38,784,499
Charges for services 31,077,922 14,835,625 - -
Fines, forfeitures and assessments 1,221,701 - - 40,977 Interest income (loss) 8,148,296 591,134 46,780 614,349 Loan payments - - 62,091 -
Contributions and donations 248,536 - - -
Other income 2,379,613 - 32,656 19,958
Total revenues 388,874,621 27,550,572 11,328,256 39,459,783 Expenditures:

Current:

General government 28,150,739 13,647,364 - -
Public safety - Police 164,643,229 - - -
Public safety - Fire 59,009,285 - - -
Public works 36,887,478 - - 4,528,045
Recreation and parks 35,075,966 - - -
Development services 15,938,038 - - -
Economic/Community development 8,321,292 119,201 6,502,930 - Non-departmental 9,677,124 - - -
Capital outlay - - 4,542,457 26,529,912
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 357,703,151 13,766,565 11,045,387 31,057,957 Excess (deficiency) of revenues
over (under) expenditures 31,171,470 13,784,007 282,869 8,401,826 Other financing sources (uses):

Transfers in 2,200,000 - - -
Transfers out (26,644,035) (8,783,500) (61,854) (58,300) Total other financing sources (uses) (24,444,035) (8,783,500) (61,854) (58,300) Net change in fund balances 6,727,435 5,000,507 221,015 8,343,526 Fund balances - as previously reported 152,298,168 7,291,635 (86,759) 13,606,792 Error correction - - - -
Fund balances - beginning of the year, as restated 152,298,168 7,291,635 (86,759) 13,606,792 Fund balances - end of year $ 159,025,603 $ 12,292,142 $ 134,256 $ 21,950,318 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
$ - $ 7,553,270 $ - $ - $ - $ - $ 347,645,193
- - - - - 373,810 4,382,047
13,405,683 4,394,533 - - - 1,820,674 83,414,324
- 48,235 - 7,776 - 1,740,436 47,709,994
- 281,845 2,828,776 17,316,281 - 1,431,344 23,120,924
1,953,850 5,981,244 579,489 2,951,254 140,974 179,158 21,186,528 - - - - - 6,667 68,758
- - - - - - 248,536
279 19,580 - 5,651 139,821 65,041 2,662,599
15,359,812 18,278,707 3,408,265 20,280,962 280,795 5,617,130 530,438,903 1,189,977 699,327 - 144,604 - - 43,832,011
- - - - - 1,650,144 166,293,373
- - - - - 2,003,116 61,012,401
247,170 110,233 130,659 480,918 - 509,337 42,893,840
- 5,216 - - - 16,071 35,097,253
- 257 - - - - 15,938,295
8,038,529 - - - - - 22,981,952
1,920,053 30,299 - - - - 11,627,476
2,062,330 45,023,231 388,809 8,332,902 - 115,635 86,995,276 - - - - - 640,646 640,646
- - - - - 3,187 3,187
13,458,059 45,868,563 519,468 8,958,424 - 4,938,136 487,315,710 1,901,753 (27,589,856) 2,888,797 11,322,538 280,795 678,994 43,123,193 - 29,892,910 - - - 702,500 32,795,410
(4,000,000) - - - - (1,287,200) (40,834,889)
(4,000,000) 29,892,910 - - - (584,700) (8,039,479)
(2,098,247) 2,303,054 2,888,797 11,322,538 280,795 94,294 35,083,714 5,976,430 129,183,555 7,909,868 58,665,040 2,805,667 3,133,004 380,783,400 (3,878,183) - - - - - (3,878,183)
2,098,247 129,183,555 7,909,868 58,665,040 2,805,667 3,133,004 376,905,217 $ - $ 131,486,609 $ 10,798,665 $ 69,987,578 $ 3,086,462 $ 3,227,298 $ 411,988,931 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, 2024
Net Change in Fund Balances - Total Governmental Funds $ 35,083,714 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 (includes SBITA and Lease activity) $ 24,988,857 Depreciation and amortization expense is deducted from fund balance (net of Internal Service Fund depreciation of $12,469,610 which has already been allocated to serviced funds). (71,034,733) 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. 66,212,783 20,166,907
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 (901,677)
Net pension expense (21,626,239)
Net other post-employment benefit expense 6,399,699 (16,128,217) 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. 640,646
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. (984,753) 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. 7,294,613
Less: amount of Internal Service Funds net income allocated to Business Type Activities (915,098) Change in Net Position of Governmental Activities $ 45,157,812 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, 2024
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Current assets:

Cash and investments $ 96,155,811 $ 31,741,390 $ 21,720,839 Accounts receivable, net 2,635,476 7,952,709 455,447
Interest receivable 927,845 329,417 214,165
Advances to other funds - current 293,106 - -
Due from other governmental agencies - 1,795,002 -
Prepayments and inventories - - -
Total current assets 100,012,238 41,818,518 22,390,451
Noncurrent assets:

Capital assets:

Land 10,689,406 2,958,335 2,175,944
Depreciable buildings, property,
equipment and infrastructure, net 575,776,661 6,685,001 9,561,143 Construction in progress 6,408,156 264,028 604,177
Intangible assets - - 8,032,678
Lease receivable 2,730,562 - -
Subscription Asset - net of amortization - - -
Advances to other funds 1,853,309 - -
Other long-term receivable - - 23,415
Total noncurrent assets 597,458,094 9,907,364 20,397,357 Total assets 697,470,332 51,725,882 42,787,808
Deferred outflows of resources:

Deferred pensions 3,539,553 6,505,034 965,696
Deferred other post-employment benefits 428,023 644,035 100,004 Debt issuance 6,049,116 - -
Total deferred outflows of resources 10,016,692 7,149,069 1,065,700 Current liabilities:

Accounts payable and accrued liabilities 5,156,013 4,197,120 123,496 Claims payable - - -
Workers' compensation claims - - -
Compensated absences payable 155,076 159,785 1
Advances from other funds - current - 293,106 -
Long-term debt - due within one year 10,526,778 - -
Lease liability - due within one year - - -
Subscription liability - due within one year - - -
Advances from grantors and third parties - 1,185,539 -
Total current liabilities 15,837,867 5,835,550 123,497
Noncurrent liabilities:

Long-term debt - due in more than one year 90,512,444 - - Lease liability - due in more than one year - - -
Kern River Levee District/Buena Vista - - 384,935
Subscription liability - due in more than one year - - - Customers' deposits 6,857,615 364,273 -
Workers' compensation claims - - -
Compensated absences payable 766,538 1,131,772 262,647
Advances from other funds - 1,853,309 -
Net pension liability 13,899,243 24,437,719 3,781,872
Net other post-employment benefits liability 491,823 740,032 114,912 Total noncurrent liabilities 112,527,663 28,527,105 4,544,366 Total liabilities 128,365,530 34,362,655 4,667,863
Deferred inflows of resources:

Deferred pensions (99,970) 163,081 8,319
Deferred other post-employment benefits 230,739 347,186 53,911 Deferred Inflow Leases 2,548,325 - -
Total deferred inflows of resources 2,679,094 510,267 62,230 Net position:

Net investment in capital assets 497,884,118 9,907,363 20,373,942 Restricted for:

Capital improvements 20,200,000 - -
Unrestricted 58,358,284 14,094,666 18,749,473
Total net position (deficit) $ 576,442,402 $ 24,002,029 $ 39,123,415 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
$ 50,864,726 $ 787,663 $ 75,655 $ 201,346,084 $ 85,845,333 2,898,720 68,340 40,444 14,051,136 1,669
583,226 7,540 (30) 2,062,163 749,581
- - - 293,106 -
- - - 1,795,002 2,907
- - - - 1,573,166
54,346,672 863,543 116,069 219,547,491 88,172,656
878,097 7,464,254 410,000 24,576,036 -
207,553,820 2,205,897 113,432 801,895,954 72,387,967
2,229,957 1,048,859 - 10,555,177 -
23,444,228 - - 31,476,906 -
- 1,014,326 - 3,744,888 -
- - - - 1,972,218
- - - 1,853,309 -
- - - 23,415 -
234,106,102 11,733,336 523,432 874,125,685 74,360,185
288,452,774 12,596,879 639,501 1,093,673,176 162,532,841 716,420 66,543 - 11,793,246 3,124,703
36,002 - - 1,208,064 384,021
- - - 6,049,116 -
752,422 66,543 - 19,050,426 3,508,724
3,314,978 25,646 7,896 12,825,149 5,115,926
- - - - 4,927,000
- - - - 10,733,000
21,879 10,517 - 347,258 198,242
- - - 293,106 -
- - - 10,526,778 -
782,515 - - 782,515 -
- - - - 568,564
- - - 1,185,539 -
4,119,372 36,163 7,896 25,960,345 21,542,732
- - - 90,512,444 11,658,000
13,383,520 - - 13,383,520 -
- - - 384,935 -
- - - - 405,675
1,637,110 - - 8,858,998 -
- - - - 60,737,000
197,229 2,277 - 2,360,463 527,140
- - - 1,853,309 -
2,749,147 171,721 - 45,039,702 11,801,293
41,368 - - 1,388,135 441,261
18,008,374 173,998 - 163,781,506 85,570,369
22,127,746 210,161 7,896 189,741,851 107,113,101
156,483 7,663 - 235,576 169,342
19,408 - - 651,244 -
- 917,273 - 3,465,598 207,018
175,891 924,936 - 4,352,418 376,360
219,940,066 10,719,010 523,432 759,347,931 72,387,967
- - - 20,200,000 -
46,961,493 809,315 108,173 139,081,404 (13,835,863)
$ 266,901,559 $ 11,528,325 $ 631,605 918,629,335 $ 58,552,104 7,995,494
$ 926,624,829
37 CITY OF BAKERSFIELD
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Operating revenues:

Intergovernmental $ - $ 172,225 $ 429,450
Charges for services 39,314,555 77,922,924 11,520,540
Cost recoveries 18,886 7,770,082 915,430
Rental income 206,945 - 21,628
Other sales or services 4,121 214,750 2,002,136
Miscellaneous (19,369) 47,234 -
Total operating revenues 39,525,138 86,127,215 14,889,184 Operating expenses:

General and administrative 22,375,246 71,121,787 5,943,367 Transmission and distribution 414,299 1,814,877 241,001 Workers' compensation payments - - -
Claims paid - - -
Depreciation and amortization 20,456,715 310,725 572,242 Compensated absences - 94,561 59,942
Total operating expenses 43,246,260 73,341,950 6,816,552 Operating income (loss) (3,721,122) 12,785,265 8,072,632 Nonoperating revenues (expenses):

Interest income (loss) 4,350,041 1,825,210 760,088
Connection fees 7,735,463 - -
Interest expense (3,619,147) (34,362) -
Gain on sale of capital assets - 36,441 -
Total nonoperating revenues (expenses) 8,466,357 1,827,289 760,088 Income (loss) before transfers
and capital contributions 4,745,235 14,612,554 8,832,720 Capital contributions 7,196,081 - -
Lease payment - - -
Transfers in - - -
Transfers out (115,000) (4,167,845) (203,200)
Change in net position 11,826,316 10,444,709 8,629,520
Net position (Deficit) -
Beginning of year 564,616,086 13,557,320 30,493,895
Error correction - - -
Net position - Beginning of the year, as restated 564,616,086 13,557,320 30,493,895 Net position-End of year $ 576,442,402 $ 24,002,029 $ 39,123,415 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
$ - $ 103,678 $ - $ 705,353 $ -
29,986,528 297,657 196,013 159,238,217 76,065,452
64,551 8,712 - 8,777,661 949,223
- - - 228,573 -
3,055,857 - - 5,276,864 -
1,210 (6,368) - 22,707 44,390
33,108,146 403,679 196,013 174,249,375 77,059,065
32,825,961 434,561 245,286 132,946,208 56,021,860
2,686,779 26,344 - 5,183,300 -
- - - - 5,107,730
- - - - 6,048,547
7,174,240 118,356 72,148 28,704,426 12,469,610
74,978 - - 229,481 44,638
42,761,958 579,261 317,434 167,063,415 79,692,385
(9,653,812) (175,582) (121,421) 7,185,960 (2,633,320)
2,532,593 83,297 (681) 9,550,548 3,011,028
650,838 - - 8,386,301 -
- - - (3,653,509) -
7,140 - - 43,581 578,371
3,190,571 83,297 (681) 14,326,921 3,589,399
(6,463,241) (92,285) (122,102) 21,512,881 956,079
4,431,212 - - 11,627,293 1,300,789
(602,992) - - (602,992) -
- - 120,000 120,000 5,291,064
(40,000) (10,242) (12,998) (4,549,285) (253,319)
(2,675,021) (102,527) (15,100) 28,107,897 7,294,613
269,576,580 11,630,852 646,705 50,988,907
- - - 268,584
269,576,580 11,630,852 646,705 51,257,491
$ 266,901,559 $ 11,528,325 $ 631,605 $ 58,552,104
1,184,321
$ 29,292,218
39 Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Domestic
Water
Cash from operating activities:

Cash received from:

Customers $ 44,201,420 $ 74,074,669 $ 16,064,069 $ 34,588,988 Prior year reimbursements and cost recoveries 18,886 7,770,082 915,430 64,551 Cash paid to:

Suppliers (17,113,782) (57,829,474) (5,458,754) (33,823,672) Employees (8,192,197) (15,169,075) (2,616,779) (1,608,780) Net cash provided (used) by operating activities 18,914,327 8,846,202 8,903,966 (778,913) Cash from noncapital financing activities:

Cash transferred from other funds - - - -
Cash transfers to other funds (115,000) (4,167,845) (203,200) (40,000) Interfund loan receivable 288,775 (288,775) - -
Connection fees 7,735,463 - - 650,838
Net cash provided (used) by noncapital financing
activities 7,909,238 (4,456,620) (203,200) 610,838
Cash from capital and related financing activities:

Principal payments
Issuance of debt 756,140 - - -
Notes/Loans/Bonds (10,056,778) - - -
Lease payments - - - (1,350,640)
Interest paid (3,619,147) (34,362) - -
Acquisition and construction of capital assets (8,006,223) (290,309) (880,999) (593,629) SBITA payments - - - -
Proceeds from lease activities (34,448) - - -
Proceeds from sale of capital assets - 36,441 - 7,140
Net cash provided (used) by capital and related
financing activities (20,960,456) (288,230) (880,999) (1,937,129) Cash from investing activities:

Interest received 3,160,716 1,372,421 583,503 1,787,507 Net increase (decrease) in the fair value of investments 999,332 313,026 70,228 629,552 Net cash provided by investing activities 4,160,048 1,685,447 653,731 2,417,059 Net increase (decrease) in cash and investments 10,023,157 5,786,799 8,473,498 311,855 Cash and investments - Beginning of year 86,132,654 25,954,591 13,247,341 50,552,871 Cash and investments - End of Year 96,155,811 31,741,390 21,720,839 50,864,726 The accompanying notes are an integral part of these financial statements. 40 CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
General
Aviation Fund
Offstreet
Parking Fund Totals
Governmental
Activities
Internal
Service Funds
$ 338,173 $ 157,246 $169,424,565 $ 76,105,823
8,712 - 8,777,661 949,223
(380,938) (245,630) (114,852,250) (52,433,305)
(117,151) - (27,703,982) (2,259,987)
(151,204) (88,384) 35,645,994 22,361,754
- 120,000 120,000 5,291,064
(20,485) (25,997) (4,572,527) 1,047,470
- - - -
- - 8,386,301 -
(20,485) 94,003 3,933,774 6,338,534
- - 756,140 -
- - (10,056,778) -
- - (1,350,640) -
- - (3,653,509) -
(155,893) (1) (9,927,054) (24,462,761)
- - - (992,472)
(63,698) - (98,146) -
- - 43,581 578,371
(219,591) (1) (24,286,406) (24,876,862)
96,674 (422) 7,000,399 2,102,781
15,642 - 2,027,780 690,808
112,316 (422) 9,028,179 2,793,589
(278,964) 5,196 24,321,541 6,617,015
1,066,627 70,459 177,024,543 79,228,318
787,663 75,655 201,346,084 85,845,333
41 Wastewater
Treatment
Refuse
Collection
River &
Agricultural
Water
Domestic
Water
Reconciliation of Operating income (Loss) to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) (3,577,088) 13,034,330 8,108,490 (9,630,595) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense 20,456,715 310,725 572,242 7,174,240 (Increase) decrease in accounts receivable (665,582) (5,616,005) 1,159,831 826,330 (Increase) decrease in inventories - - - -
(Increase) decrease in prepaid items - - - -
Increase (decrease) in accounts payable 239,180 522,977 (1,001,946) 976,428 Increase (decrease) in unearned revenue - 1,063,664 - - Increase (decrease) in customers' deposits 2,545,907 (20,428) 49,485 (202,338) Other accrued liabilities - - - -
Increase (decrease) in compensated absences 44,034 44,899 59,942 74,978 Increase (decrease) in net pension liability 97,394 177,493 29,941 21,840 Increase (decrease) in deferred outflows/inflows of
resources for pensions 267,500 484,956 64,604 24,576
Increase (decrease) in net other post-employment benefits liability (351,487) (971,246) (107,012) (32,606)
Increase (decrease) in deferred outflows/inflows of
resources for OPEB (142,246) (185,163) (31,611) (11,766) Net cash provided (used) by operating activities: 18,914,327 8,846,202 8,903,966 (778,913) Noncash investing capital and financing activities:

Contributions of infrastructure and improvements $ 7,196,081 $ - $ - $ 4,431,212 The accompanying notes are an integral part of these financial statements. 42 CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
General
Aviation Fund
Offstreet
Parking Fund Totals
Governmental
Activities
Internal
Service Funds
(162,433) (108,423) 7,664,281 (2,504,038)
118,356 72,148 28,704,426 12,469,610
(56,794) (38,769) (4,390,989) 2,801
- - - (89,495)
- - - 17,568
(66,959) (13,340) 656,340 2,759,011
- - 1,063,664 -
- - 2,372,626 -
- - - 9,826,000
3,228 - 227,081 43,172
1,833 - 328,501 87,209
11,565 - 853,201 232,441
- - (1,462,351) (357,664)
- - (370,786) (124,861)
(151,204) (88,384) 35,645,994 22,361,754
$ - $ - $ 11,627,293 $ -
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 - The 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
- This 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, 2024
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds
Custodial
Funds
Assets:

Cash $ 36,162,980 $ 3,572,298 $ 37,399,591
Accounts receivable - - (8,682)
Interest receivable 308,916 2,985 75,432
Investments
Domestic equities - 43,010,139 -
Fixed income - 51,749,485 -
Total investments - 94,759,624 -
Land held for resale 60,895 - -
Total assets 36,532,791 98,334,907 37,466,341
Liabilities:

Payables:

Accounts payable 2,071,117 - -
Advances from grantors and third parties 2,818,670 - -
Deposits - - 34,553,578
Accrued bond interest - - 195,172
Bonds 1,530,000 - 2,717,591
Notes 7,853,149 - -
Total liabilities 14,272,936 - 37,466,341
Net Position:

Restricted for:

Individuals, organizations and other governments 22,259,855 - - Other post-employment benefits - 98,334,907 -
Total Net Position $ 22,259,855 $ 98,334,907 $ -
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, 2024
Private Purpose
Trust Funds
Pension and Other
Employee Benefit
Trust Funds Custodial Funds
Additions
Contributions to pooled investments $ - $ 4,942,273 $ - Developer fees 171,278 - -
Successor agency property tax deposits 1,417,023 - -
Assessment District Contributions - - 2,742,298
Special Deposit Contribution - - 19,961,455
Other Contributions 7,431,019 - 671,265
Other income / (loss) 237,779 - 420,179
Interest income (loss) 789,030 6,955,723 460,134
Total additions 10,046,129 11,897,996 24,255,331
Deductions:

Benefits - 3,795,945 -
Administrative expenses - 242,657 -
Purchase of uninhabited land 556,775 - -
Obligation retirement 434,261 - 3,477,591
Bond - Interest - - 316,300
Other Distributions 3,413,339 - 20,119,019
Total deductions 4,404,375 4,038,602 23,912,910
Change in net position 5,641,754 7,859,394 342,421
Net position - beginning of year 16,618,101 90,475,513 - Net position - end of year $ 22,259,855 $ 98,334,907 $ 342,421 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
- T he 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
- The 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
- T he 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
- The 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 - The 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
- The 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
- The 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
- The 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
- T he 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 trustee 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 when their receipt occurs w ithin 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 require 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 - This category represents net position of the City, not restricted for any project or other purpose.

As of June 30, 2024, net position is as follows:

Governmental
Activities
Business-Type
Activities Total
Net investment in capital assets $ 1,429,436,704 $ 759,347,931 $ 2,188,784,635 Restricted 23,409,163 20,200,000 43,609,163
Unrestricted 9,583,120 147,076,898 156,660,018
Total net position $ 1,462,428,987 $ 926,624,829 $ 2,389,053,816 Fund balances of the governmental funds are reported 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 – i ncludes 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 – i ncludes 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 – includes 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 through 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, 2024, the City Council approved $- of increases to the originally adopted budget, excluding carryovers of prior year encumbered balances and selected capital appropriations.

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, 2024, the City implemented the following standards:

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.Those effects are included in the face of the financial reports and in a separate note disclosure (Note 24).

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 to early implement these Statements and has not determined their effects on the City's financial statements:

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). 58 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. New Accounting Pronouncements (continued)
NOTE 2 - CASH AND INVESTMENTS
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 691,539,033
Fiduciary funds:

Cash and investments 173,317,969
$ 864,857,002
Cash and investments as of June 30, 2024, consist of the following:

Cash on hand $ 1,559,891
Deposits with financial institutions 45,256,546
Investments 826,999,267
GASB Stmt. No. 31 Fair Value Adjustment (8,958,702)
$ 864,857,002
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 $ 91,474,970 $ 94,388,667 $ 40,981,390 $ 33,083,000 $ 20,324,277 $ - Federal Home Loan Bank 99,775,610 103,476,880 - 40,746,180 62,730,700 - Federal Home Loan Mortgage Corp. 75,670,186 77,025,523 35,000,000 37,025,523 5,000,000 - Federal National Mortgage Assn. 60,410,766 61,457,182 34,294,857 16,977,130 10,185,195 - U.S. Treasury Bills, Notes, and Bonds 458,669 458,669 458,669 - - - Local Agency Investment Fund 125,175,960 125,175,960 125,175,960 - - - CAMP 265,441,953 265,441,953 265,441,953 - - -
Mutual Funds (1) 99,202,723 99,202,723 99,202,723 - - - Investment Contracts 371,711 371,711 - - - 371,711
Total $817,982,548 $826,999,268 $600,555,552 $127,831,833 $ 98,240,172 $ 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 $ 94,388,667 $ - $ 94,388,667 $ - Federal Home Loan Bank 103,476,880 - 103,476,880 -
Federal Home Loan Mortgage Corp. 77,025,523 - 77,025,523 - Federal National Mortgage Assn. 61,457,181 - 61,457,181 - U.S. Treasury Bills, Notes, and Bonds 458,669 - 458,669 - Local Agency Investment Fund 125,175,960 - - 125,175,960 CAMP 265,441,953 - - 265,441,953
Mutual Funds (1) 99,202,723 99,202,723 - -
Investment Contracts 371,711 - - 371,711
Total $826,999,267 $ 99,202,723 $336,806,920 $390,989,624 (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 $ 94,388,667 11% Federal Home Loan Bank Federal Agency Securities 103,476,880 13% Federal Home Loan Mortgage Corp. Federal Agency Securities 77,025,523 9% Federal National Mortgage Assn. Federal Agency Securities 61,457,181 7% 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, 2024, 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, 2024, 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 62 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
purchase the securities in the City’s name.

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

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

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

Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by 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 $
817,982,548, of which $327,331,532 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, 2024 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
Gas Tax
& Road
Fund
Capital
Outlay
Fund
Redevelopment
Successor
Agency -
Housing Fund
Non-Major
Governmental
Funds
Internal
Service
Funds
Taxes $ - $9,375,306 $ - $ - $ - $ - $ - $ -
Accounts 1,642,945 - 14,666,503 176,641 112,005 215 3,972,177 1,669 Gross Receivables 1,642,945 9,375,306 14,666,503 176,641 112,005 215 3,972,177 1,669 Less: Allowance
Total Accounts Receivable -
Net $ 1,642,945 $9,375,306 $ 14,666,503 $ 176,641 $ 112,005 $ 215 $ 3,972,177 $ 1,669 Accounts Receivable -
Governmental Funds:

Total
Governmental
Activities
Taxes $ 9,375,306
Accounts 20,572,155
Gross Receivables 29,947,461
Less: Allowance
Total Accounts Receivable - Net $ 29,947,461
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 $ 2,635,476 $ 7,952,709 $ 455,447 $ 2,898,720 $ 68,340 $ 40,444 $ 14,051,136 Gross Receivables 2,635,476 7,952,709 455,447 2,898,720 68,340 40,444 14,051,136 Less: Allowances for
Uncollectible - - - - - - -
Total Accounts Receivable - Net $ 2,635,476 $ 7,952,709 $ 455,447 $ 2,898,720 $ 68,340 $ 40,444 $ 14,051,136 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, 2024, 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 $ 6,895,639 $ 496,220 $ 1,104,040 $ 560,030 $ 1,107,203 $ 4,154,846 $ 3,847,560 Due to other governments 2,387,032 - - - - - -
Total Accounts Payable
and Accrued Liabilities $ 9,282,671 $ 496,220 $ 1,104,040 $ 560,030 $ 1,107,203 $ 4,154,846 $ 3,847,560 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 $ 168,999 $ 266,110 $ 13,181 $ 5,115,926 $ 23,729,754 Due to other governments - - - - 2,387,032
Total Accounts Payable
and Accrued Liabilities $ 168,999 $ 266,110 $ 13,181 $ 5,115,926 $ 26,116,786 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 $ 5,156,013 $ 4,197,120 $ 123,496 $ 3,314,978 $ 25,646 $ 7,896 $ 12,825,149 NOTE 4 - DUE FROM OTHER GOVERNMENTS
Amounts due from other governments at June 30, 2024 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 $ - $ 1,800,083 $ - $ 1,800,083 $ - $ 1,800,083 Sales Tax - 34,249,851 - 34,249,851 - 34,249,851
Public Employee Retirement System - 2,907 - 2,907 - 2,907 Caltrans - 8,660,332 - 8,660,332 17,837 8,678,169
SB 1 - Road Maintenance & Rehabilitation - 1,836,629 - 1,836,629 - 1,836,629 Proposition 68 - 192,403 - 192,403 - 192,403
Department of Justice - 1,851,953 - 1,851,953 - 1,851,953 Department of Transportation 143,311 - - 143,311 - 143,311 Economic/Community Development 5,418,237 - - 5,418,237 - 5,418,237 Department of Natural Resources - 83,550 - 83,550 - 83,550 Kern County Council of Governments - - 74,340 74,340 - 74,340 Kern County Waste Management - - - - 1,777,165 1,777,165 Kern County Fire Department - - 8,746,333 8,746,333 - 8,746,333 Totals $ 5,561,548 $ 48,677,708 $ 8,820,673 $ 63,059,929 $ 1,795,002 $ 64,854,931 65 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS
Capital asset activities for the year ended June 30, 2024, were as follows:

Balance Balance
June 30, 2023 Adjustments Additions Retirements June 30, 2024 Governmental Activities
Capital assets, not being depreciated
Land $ 450,649,754 $ - $ 2,874,140 $ - $ 453,523,894
Construction in progress 210,823,278 - 44,166,691 63,542,153 191,447,816 Total capital assets, not being depreciated 661,473,032 - 47,040,831 63,542,153 644,971,710 Capital assets, being depreciated
Buildings, structures and improvements 165,967,553 - 17,667,472 - 183,635,025 Infrastructure 1,903,687,304 - 90,272,756 - 1,993,960,060 Rolling equipment 126,685,756 - 23,503,363 9,133,801 141,055,318 Furniture and other equipment 24,943,084 - 1,087,786 8,149 26,022,721 Total capital assets, being depreciated 2,221,283,697 - 132,531,377 9,141,950 2,344,673,124 Less accumulated depreciation for
Buildings, structures and improvements (97,297,770) - (5,279,374) - (102,577,144) Infrastructure (1,301,380,792) - (64,833,836) - (1,366,214,628) Rolling equipment (70,266,874) - (11,212,163) (8,981,414) (72,497,623) Furniture and other equipment (15,894,889) - (1,311,343) (5,704) (17,200,528) Total accumulated depreciation/amortization (1,484,840,325) - (82,636,716) (8,987,118) (1,558,489,923) Total capital assets, being depreciated, net 736,443,372 - 49,894,661 154,832 786,183,201 Leases, net of amortization (Note 10) 3,758,837 - (1,216,061) - 2,542,776 SBITA, net of amortization (Note 11) 2,556,131 - 607,588 - 3,163,719 Governmental activities capital assets, net $ 1,404,231,372 $ - $ 96,327,019 $ 63,696,985 $ 1,436,861,406 Business-Type Activities
Capital assets, not being depreciated/amortized
Land $ 24,438,536 $ - $ 137,500 $ - $ 24,576,036
Water rights 31,476,906 - - - 31,476,906
Construction in progress 14,365,834 - 4,543,977 8,354,634 10,555,177 Total capital assets, not being depreciated 70,281,276 - 4,681,477 8,354,634 66,608,119 Capital assets, being depreciated
Buildings, structures and improvements 340,921,990 - 4,258,534 - 345,180,524 Infrastructure 941,919,566 - 19,958,636 - 961,878,202
Equipment 94,179,971 - 870,522 - 95,050,493
Total capital assets being depreciated 1,377,021,527 - 25,087,692 - 1,402,109,219 Less accumulated depreciation for
Buildings, structures and improvements (162,372,720) - (8,297,263) - (170,669,983) Infrastructure (351,004,418) - (15,907,695) - (366,912,113) Equipment (58,271,511) - (4,499,467) - (62,770,978)
Total accumulated depreciation (571,648,649) - (28,704,425) - (600,353,074) Total capital assets, being depreciated, net 805,372,878 - (3,616,733) - 801,756,145 Business-type activities capital assets, net $ 875,654,154 $ - $ 1,064,744 $ 8,354,634 $ 868,364,264 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 $ 1,417,451
Public safety - Police 990,672
Public safety - Fire 1,054,270
Public works 74,236,591
Recreation and parks 3,785,273
Development services 217,069
Economic/Community Development 935,390
Total $ 82,636,716
Business-type functions:

Wastewater treatment $ 20,456,716
Refuse collection 310,725
River & agricultural water 572,241
Domestic water 7,174,240
General aviation 118,356
Offstreet parking 72,147
Total $ 28,704,425
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, 2023 Additions Deletions June 30, 2024 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). $ 2,596,923
Mercy Housing, Madison Place Apartments, 55 year loan term, with 1/55 to be forgiven each year of compliance to agreement. 235,897
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. 1,491,108
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. 216,089
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 $ 24,696,618
68 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES (continued)
Current portion $ -
Long-term portion 24,696,618
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. $ 23,415
Total business-type noncurrent receivables $ 23,415
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, 2024 were:

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

Major Funds:

General Fund $ 3,474,265 $ -
Community Development Block Grant Fund - 3,474,265
$ 3,474,265 $ 3,474,265
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 $ - $ 2,146,415
Refuse Fund 2,146,415 -
$ 2,146,415 $ 2,146,415
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, 2024 consisted of the following:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General Fund $ 2,200,000 $ 26,644,035
Gas Tax & Road Fund - 58,300
Covid Relief Fund - 4,000,000
Transient Occupancy Taxes Fund - 8,783,500
Community Development Block Grant Fund - 61,854
Capital Outlay Fund 29,892,910 -
Non-Major Funds:

State Safety Fund - 1,287,200
General Obligation Debt Fund 702,500 -
Subtotal 32,795,410 40,834,889
Private Purpose Trust Funds:

Affordable Housing Fund 7,431,019 -
Proprietary Funds:

Major Funds:

Wastewater Treatment Fund - 115,000
Refuse Collection Fund - 4,167,845
River & Agricultural Water Fund - 203,200
Domestic Water Fund - 40,000
General Aviation Fund - 10,242
Offstreet Parking Fund 120,000 12,998
Internal Service Funds:

Self-Insurance Fund - 253,319
Equipment Management Fund 5,291,064 -
$ 45,637,493 $ 45,637,493
Additional details regarding transfers in and out of various funds are provided below:
 The $1,200,000 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 $4,000,000 transfer from the COVID Relief Fund related to the allowable use of funds for recovery efforts. These additional funds were interest revenue earned on the initial deposits received from the Department of Treasury over the last two years .
 The $26,644,035 transfer from the General Fund includes a transfer to the Capital Outlay Fund of $18,111,910 for various capital improvement projects, $601,651 to the General Obligation Debt Fund for the repayment of loans from PG&E for energy efficient retro fit projects, $126,350 to the Offstreet Parking Fund for security, $7,431,019 to fund the Affordable Housing Trust Fund, and $8,909,000 from PSVS to the General Fund to supplement the costs incurred in that fund.  The $8,783,500 transfers from the Transient Occupancy Taxes Fund include $7,781,000 transferred to the Capital Outlay Fund to fund a number of capital projects, $1,000,000 to the General Fund to supplement the costs incurred in that fund, and $15,755 for the repayment of a loan from PG&E for an energy efficiency retrofit at Mechanics Bank Arena. 70 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued)
 The $61,854 transfer from the Community Development Block Grant (CDBG) Fund to the General Obligation Debt Fund is for the repayment of a Section 108 loan.
 There were additional transfers to the Equipment Management Fund to purchase additional equipment for operations which include: the General Fund ($363,700), the State Safety Fund ($87,200), the Gas & Tax & Road Fund ($151,300), the Sewer Fund ($115,000), the Refuse Fund ($4,167,845), the River & Ag Water Fund ($203,200), and the Self- Insurance Fund ($253,319).

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, 2024:

Balance at
June 30, 2024
Governmental Activities:

General Fund
Dog License $ 61,786
Business License 2,269,289
General Fund Total 2,331,075
COVID Relief 46,404,902
Redevelopment Successor Agency - Housing 22,092,529
Non-Major Funds:

State TDA - Grants Advanced 144,933
Total Governmental Activities $ 70,973,439
Business-Type Activities:

Refuse Collection $ 1,185,539
Total Business-Type Activities $ 1,185,539
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 fifteen 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 $330,122 per y ear, with the incremental borrowing rate of 1.5%. For the year ended June 30, 2024 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, 2024 are as follows:

Balance at
June 30, 2023 Additions
Principal
Retirement
Balance at
June 30, 2024
Governmental Activities
Lease Receivable $ 400,647 $ - $ 50,938 $ 349,709
Deferred inflow of resources $ 380,188 $ - $ 54,506 $ 325,682 Restated
Balance at
June 30, 2023 Additions
Principal
Retirement
Balance at
June 30, 2024
Business-Type Activities
Lease Receivable $ 4,215,890 $ - $ 471,003 $ 3,744,887
Deferred inflow of resources $ 4,035,416 $ - $ 569,817 $ 3,465,599 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 five lease agreements subject to GASB Statement No. 87, Leases, at the beginning of the fiscal year. During the fiscal year, the City entered into three 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 $447 to $651,234 per year with the incremental borrowing rate ranging from 3% to 5%.

For the year ended June 30, 2024, 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, 2024 are as follows:

Restated
Balance at
June 30, 2023 Additions
Principal
Retirement
Balance at
June 30, 2024
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 3,520,078 - - 3,520,078
Total lease assets 5,097,037 - - 5,097,037
Accumulated amortization (1,338,200) (1,216,061) - (2,554,261) Total lease assets, net $ 3,758,837 $ (1,216,061) $ - $ 2,542,776 Lease liability $ 3,814,681 $ - $ (1,200,266) $ 2,614,415 During the year ended June 30, 2024, the City recognized lease expenses and interest expenses as follows:

Business-Type
Activities
Governmental
Activities
Amortization of lease assets $ 747,648 $ 1,216,061
Total lease expenses 747,648 1,216,061
Lease interest expenses 602,990 111,722
Total lease interest expenses $ 602,990 $ 111,722
As of June 30, 2024, 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
2025 $ 1,020,658 $ 72,170 $ 1,092,828
2026 720,262 44,235 764,497
2027 735,322 18,751 754,073
2028 126,576 1,009 127,585
2029 3,627 353 3,980
2030-2034 6,046 654 6,700
2035-2039 1,923 117 2,040
Totals $ 2,614,414 $ 137,289 $ 2,751,703
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 with the value of the water rights at $14,166,035. The total lease obligations for the term of the agreement are as follows:

Business-Type Activities
Year ending Lease Interest Total
2025 $ 782,515 $ 566,907 $ 1,349,422
2026 819,559 529,058 1,348,617
2027 860,240 488,979 1,349,219
2028 902,834 446,723 1,349,557
2029 947,256 402,684 1,349,940
2030-2034 5,363,613 1,382,951 6,746,564
2035-2039 4,490,018 409,788 4,899,806
Totals $ 14,166,035 $ 4,227,090 $ 18,393,125
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 that conveys control of the right to use another party's information technology software, alone or in combination with tangible capital 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 3.5%. The SBITA term includes noncancellable period and periods covered by an option to extend if it is reasonably certain that the City or the 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, 2024 the City has twenty-nine 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, 2024:

Governmental activities:

Restated
Beginning
Balance Additions Retirements Total
Subscription assets $ 3,151,516 $ 2,309,861 $ - $ 5,461,377 Accumulated amortization (595,385) (1,702,273) - (2,297,658) Total subscription assets, net 2,556,131 607,588 - 3,163,719 Subscription liability $ 1,352,278 $ 2,309,861 $ (1,651,858) $ 2,010,280 SBITA principal and interest payments to maturity are as follows:

Governmental Activities
Year ending Principal Interest Total
2025 $ 991,226 $ 59,284 $ 1,050,510
2026 555,446 32,323 587,769
2027 442,333 22,904 465,237
2028 21,275 757 22,032
Totals $ 2,010,280 $ 115,268 $ 2,125,548
76 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 11 - SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) (continued)
NOTE 12 - LONG-TERM DEBT
Long-term debt transactions for the fiscal year ending June 30, 2024 are summarized below:

Business-Type Activities
Governmental
Activities
General
Obligations
Revenue
Obligations Total
Total
Government
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 Subtotal 102,240,684 5,251,279 111,096,000 116,347,279 218,587,963 New debt incurred:

Bonds - - - - -
Contracts/Loans - 49,485 - 49,485 49,485
Claims and Judgments Payable 9,826,000 - - - 9,826,000
Compensated Absences 13,141,621 1,687,843 - 1,687,843 14,829,464 Subtotal 22,967,621 1,737,328 - 1,737,328 24,704,949
Principal reductions:

Bonds - - 10,056,778 10,056,778 10,056,778
Notes 701,656 288,775 - 288,775 990,431
Compensated Absences 12,196,773 1,460,763 - 1,460,763 13,657,536 Subtotal 12,898,429 1,749,538 10,056,778 11,806,316 24,704,745 Payable at June 30, 2024:

Bonds - - 101,039,222 101,039,222 101,039,222
Notes 1,646,568 2,146,415 - 2,146,415 3,792,983
Contracts/Loans - 384,932 - 384,932 384,932
Claims and Judgments Payable 88,055,000 - - - 88,055,000 Compensated Absences 22,608,308 2,707,721 - 2,707,721 25,316,029 Total Payables $112,309,876 $ 5,239,068 $ 101,039,222 $ 106,278,290 $ 218,588,166 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 $ - $ - $ 10,526,778 $ 10,526,778 $ 10,526,778
Notes 639,477 293,106 - 293,106 932,583
Total Long-Term Debt 639,477 293,106 10,526,778 10,819,884 11,459,361 Contracts/Loans - 384,933 - 384,933 384,933
Claims and Judgments Payable 15,660,000 - - - 15,660,000 Compensated Absences 2,387,844 347,258 - 347,258 2,735,102 Total Due Within One Year $ 18,687,321 $ 1,025,297 $ 10,526,778 $ 11,552,075 $ 30,239,396 Due in More Than One Year:

Bonds $ - $ - $ 90,512,444 $ 90,512,444 $ 90,512,444
Notes 1,007,091 1,853,309 - 1,853,309 2,860,400
Total Long-Term Debt 1,007,091 1,853,309 90,512,444 92,365,753 93,372,844 Claims and Judgments Payable 72,395,000 - - - 72,395,000 Compensated Absences 20,220,465 2,360,463 - 2,360,463 22,580,928 Total Due in More Than One Year $ 93,622,556 $ 4,213,772 $ 90,512,444 $ 94,726,216 $188,348,772 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, 2024, 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.) $ 77,660,000 Unamortized Bond Premium on Wastewater Revenue Bonds 12,854,222 Total Bonds $101,039,222
78 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT (continued)
Notes/Loans:

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. 51,210
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. 572,349
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.
319,659
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.
506,894
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.
84,487
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.
21,426
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.
90,587
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. 2,146,415 Total general obligation notes/loans payable $ 3,793,027 Compensated Absences:

Governmental Activities $ 22,608,308
Business-Type Activities 2,707,721
Total Compensated Absences $ 25,316,029
A summary of the City's debt service requirements outstanding at June 30, 2024, is as follows:
79 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 12 - LONG-TERM DEBT (continued)
Total
Government
Principal:

Governmental Activities $ 112,309,876
Business-Type Activities:

General Obligations 5,239,068
Revenue Obligations 101,039,222
Subtotal - Principal 218,588,166
Less: Claims and Judgments Payable included
above that bear no interest and have
no schedule of repayment terms 88,055,000
Less: Kern River Levee District Payable
included above that bears no interest and
has no schedule of repayment terms 384,933
Less: Unamortized premium for Wastewater
revenue bond 12,854,222
Less: Compensated Absences included above that bear
no interest and have no schedule of repayment terms 25,316,030 Total Principal with Scheduled
Repayment Terms 91,977,978
Interest on Obligations 19,599,979
Total Debt Service Requirements $ 111,577,957
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, 2024 is as follows:

Government-Type Activities
Year ending Principal Interest
Bonds Notes/Loans Total Bonds Notes/Loans Total
2025 $ - $ 639,477 $ 639,477 $ - $ - $ -
2026 - 454,655 454,655 - - -
2027 - 130,865 130,865 - - -
2028 - 129,134 129,134 - - -
2029 - 121,002 121,002 - - -
2030-2034 - 171,435 171,435 - - -
Totals $ - $ 1,646,568 $ 1,646,568 $ - $ - $ -
Business-Type Activities
Year ending Principal Interest
Bonds Notes/Loans Total Bonds Notes/Loans Total
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 11,030,000 311,092 11,341,092 2,204,750 11,877 2,216,627 2030-2034 38,580,000 636,254 39,216,254 3,376,750 9,580 3,386,330 Totals $ 88,185,000 $ 2,146,415 $ 90,331,415 $ 19,485,375 $ 114,604 $ 19,599,979 Total Reporting Entity
Year Ending Principal Interest
Bonds Notes/Loans Total Bonds Notes/Loans Total
2025 $ 8,920,000 $ 932,583 $ 9,852,583 $ 4,186,250 $ 29,998 $ 4,216,248 2026 9,365,000 752,158 10,117,158 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 10,405,000 435,629 10,840,629 2,740,625 16,509 2,757,134 2029 11,030,000 432,094 11,462,094 2,204,750 11,877 2,216,627 2030-2034 38,580,000 807,689 39,387,689 3,376,750 9,580 3,386,330 Totals $ 88,185,000 $ 3,792,983 $ 91,977,983 $ 19,485,375 $ 114,604 $ 19,599,979 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 $ 88.1 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, 2024 were as follows:

Balance at
General Fund
Code Enforcement Receivable $ 81,222
Federal Agencies (CARES) 18,503
State Agencies (SB90) 1,800,083
General Fund Total 1,899,808
CDBG - Deferred Loans 17,262,302
Capital Outlay Fund 46,606
Non-Major Funds
Neighborhood Stabilization 3,817,533
Total Governmental Funds $ 23,026,249
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, 2024 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 $ 100,147 $ - $ - $ - $ - $ 779,865
Subtotal 100,147 - - - - 779,865
Restricted
Development Services grants - - - - - -
Development Services projects - - - - - -
Police services grants - - - - - -
Fire services grants - - - - - -
Public Works grants - - - 21,950,318 - -
Subtotal - - - 21,950,318 - -
Committed
Legal & Professional services 727,175 - - - - 8,943,000 City facility construction & refurbishment projects - - - - - 11,032,606 Police service contracts 407,261 - - - - 316,786
Fire service contracts - - - - - 175,898
Public Works
improvement contracts - - - - - 2,707,491
Park improvement contracts - - - - - 918,280
Development Services contracts 187,528 - - - - 439,358
Cash basis reserve 54,037,226 - - - - -
Facility replacement reserve - - - - - 5,028,428
Economic/Community Development projects 2,771,719 - - - - 2,917,749 Appropriation for next
year's budget 32,000,000 - - - - -
Subtotal 90,130,909 - - - - 32,479,596
Assigned
Legal & Professional services 75,101 - - - - -
Police operations 144,403 - - - - -
Fire operations 92,039 - - - - -
Public Works - General
Services department 37,643 - - - - -
Highway and road projects - - - - - 18,943,553
Rolling equipment - - - - - 79,283,595
Tourism and promotional contracts 312,271 12,292,142 - - - - Park development projects 77,969 - - - - -
Economic/Community development projects 133,948 - - - - - Other miscellaneous agreements 93,455 - - - - -
Petty Cash accounts 34,270 - - - - -
Compensated absences 2,095,329 - - - - -
Public Safety and Vital Services 16,926,044 - - - - -
Subtotal 20,022,472 12,292,142 - - - 98,227,148
Unassigned 48,772,075 - 134,256 - - -
Total $ 159,025,603 $ 12,292,142 $ 134,256 $ 21,950,318 $ - $ 131,486,609 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 $ - $ - $ - $ - $ 880,012
Subtotal - - - - 880,012
Restricted
Development Services grants - - - 75,278 75,278
Development Services projects - - 3,086,462 123,708 3,210,170 Police services grants - - - 2,563,530 2,563,530
Fire services grants - - - 464,782 464,782
Public Works grants - - - - 21,950,318
Subtotal - - 3,086,462 3,227,298 28,264,078
Committed
Legal & Professional services - - - - 9,670,175
City facility construction & refurbishment projects - - - - 11,032,606 Police service contracts - - - - 724,047
Fire service contracts - - - - 175,898
Public Works
improvement contracts - 69,987,578 - - 72,695,069
Park improvement contracts 10,798,665 - - - 11,716,945
Development Services contracts - - - - 626,886
Cash basis reserve - - - - 54,037,226
Facility replacement reserve - - - - 5,028,428
Economic/Community Development projects - - - - 5,689,468 Appropriation for next
year's budget - - - - 32,000,000
Subtotal 10,798,665 69,987,578 - - 203,396,748
Assigned
Legal & Professional services - - - - 75,101
Police operations - - - - 144,403
Fire operations - - - - 92,039
Public Works - General
Services department - - - - 37,643
Highway and road projects - - - - 18,943,553
Rolling equipment - - - - 79,283,595
Tourism and promotional contracts - - - - 12,604,413
Park development projects - - - - 77,969
Economic/Community development projects - - - - 133,948 Other miscellaneous agreements - - - - 93,455
Petty Cash accounts - - - - 34,270
Compensated absences - - - - 2,095,329
Public Safety and Vital Services - - - - 16,926,044
Subtotal - - - - 130,541,762
Unassigned - - - - 48,906,331
Total $ 10,798,665 $ 69,987,578 $ 3,086,462 $ 3,227,298 $ 411,988,931 NOTE 16 - REIMBURSABLE DEVELOPER COSTS
Reimbursable developer costs of $1,501,741 at June 30, 2024 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 adjusted 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 7.25 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,
2023 (the measurement date), there are 1,176 active employees and 1,091 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2024, the employee contribution rate was 7.670 percent of annual pay, and the employer’s minimum contribution rate was 34.590 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, 2023 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2022 and the June 30, 2023 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, 2020 Funding Valuation
Report.

Inflation Rate 2.30%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% [a]
Mortality [b]
Derived from CalPERS membership
data for all funds
[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, 2023 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 86 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS' Board effective on July 1, 2016.

Asset Class (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, 2022 [a] $ 680,298,046 $ 477,903,886 $ 202,394,160 Changes Recognized for the
Measurement Period:
- Service Cost 12,622,224 - 12,622,224
- Interest on the Total
Pension Liability 46,193,018 - 46,193,018
- Changes of Benefit Terms 649,034 - 649,034
- Changes of Assumptions - - -
- Differences between Expected
and Actual Experience (85,372) - (85,372)
- Plan to Plan Movement - - -
- Contributions - Employer - 23,160,666 (23,160,666)
- Contributions - Employees - 5,287,398 (5,287,398)
- Net Investment Income - 29,653,560 (29,653,560)
- Benefit Payments Including
Refund of Employee Contributions (35,417,578) (35,417,578) - - Administrative Expenses - (351,428) 351,428
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2022-23 23,961,326 22,332,618 1,628,708 Balance at June 30, 2023 [a] $ 704,259,372 $ 500,236,504 $ 204,022,868 [a] The plan fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self- 87 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report.

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 $ 298,231,480 $ 204,022,868 $ 126,252,327
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, 2023 measurement date is 4 years, which is obtained by dividing the total service years of 13,563 (the sum of remaining lifetimes of active employees) by 3,429 (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, 2022), the net pension liability/(asset) is $202,394,160. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense/(income) of $32,592,227 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,
2024, the City had deferred outflows of resources related to pensions of $26,995,742 for contributions made subsequent to the measurement date (which will be recognized as a reduction of the net pension liability as of June 30, 2025), $11,187,329 f or changes of assumptions, and $596,712 f or the differences between expected and actual experience, and $22,593,440 f or the net difference between projected and actual earning on pension plan investments. Deferred inflows of resources related to pensions of $(622,421), $0 for changes in assumptions and $(622,421) for 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
2024 $10,170,253
2025 $7,239,718
2026 $15,739,369
2027 $605,720
2028 $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 adjusted 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 12.75 of their salary. In 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, 2023 ( the measurement date), there are 182 a ctive employees and 226 i nactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2024, the employee contribution rate was 10.24 percent of annual pay, and the employer’s minimum contribution rate was 55.41 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, 2023 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2022 and the June 30, 2023 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, 2020 Funding Valuation
Report.

Salary Increases 2.30%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% [a]
Mortality [b}
Derived from CalPERS membership
data for all funds
[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.

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

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)%
[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, 2022 [a] $ 339,978,553 $ 240,756,479 $ 99,222,074 Changes Recognized for the
Measurement Period:
- Service Cost 5,847,752 - 5,847,752
- Interest on the Total
Pension Liability 23,459,711 - 23,459,711
- Changes of Benefit Terms 117,830 - 117,830
- Changes of Assumptions - - -
- Differences between Expected
and Actual Experience 6,082,093 - 6,082,093
- Plan to Plan Resource Movement - - -
- Contributions - Employer - 11,352,355 (11,352,355)
- Contributions - Employees - 2,309,541 (2,309,541)
- Net Investment Income - 14,917,803 (14,917,803)
- Benefit Payments Including
Refund of Employee Contributions (18,213,049) (18,213,049) - - Administrative Expenses - (177,041) 177,041
- Other Misc Income/(Expense) [b] - - -
Net Changes during 2022-23 17,294,337 10,189,609 7,104,728 Balance at June 30, 2023 [a] $ 357,272,890 $ 250,946,088 $ 106,326,802 91 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
[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.

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 $ 155,207,289 $ 106,326,802 $ 66,262,974
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, 2023 measurement date is 5.5 years, which is obtained by dividing the total service years of 2,431 (the sum of remaining lifetimes of active employees) by 446 (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, 2022), the net pension liability/(asset) is $99,222,074. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense/(income) of $15,225,470 for the plan.

As of June 30,
2024, the City had deferred outflows of resources related to pensions of $12,282,354 for contributions made subsequent to the measurement date (which will be recognized as a reduction of the net pension liability as of June 30, 2025), $7,043,517 f or changes of assumptions, $5,921,548 f or the differences between expected and actual experiences and $11,428,393 f or the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions of $(2,650,120) for changes in assumptions $-and $(2,650,120) for differences between expected and actual experiences, and $0 for 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
2024 $4,484,440
2025 $3,725,816
2026 $10,554,698
2027 $2,425,466
2028 $552,918
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 adjusted 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 14.75% of 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.
93 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
As of June 30, 2023 ( the measurement date), there are 450 a ctive employees and 606 i nactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2024, the employee contribution rate was 11.50 percent of annual pay, and the employer’s minimum contribution rate was 63.12 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, 2020 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.

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)%
[a] An expected inflation of 2.00% used for this period. [b] An expected inflation of 2.92% used for this period.

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

Increase (Decrease)

SAFETY POLICE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Balance at June 30, 2022 [a] $ 628,988,726 $ 393,400,948 $ 235,587,778 Changes Recognized for the
Measurement Period:
- Service Cost 14,405,535 - 14,405,535
- Interest on the Total
Pension Liability 43,933,460 - 43,933,460
- Changes of Benefit Terms 247,178 - 247,178
- Changes in Assumptions - - -
- Differences between Expected
and Actual Experience 15,706,615 - 15,706,615
- Plan to Plan Resource Movement - - -
- Contributions - Employer - 25,617,850 (25,617,850)
- Contributions -Employees - 5,305,090 (5,305,090)
- Net Investment Income - 24,644,468 (24,644,468)
- Benefit Payments Including
Refunds of Employee Contributions (30,856,937) (30,856,937) - - Administrative Expenses - (289,289) 289,289
- Other Misc Income/(Expense) - - -
95 CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 17 - EMPLOYEE RETIREMENT BENEFITS (continued)
Increase (Decrease)

SAFETY POLICE PLAN
Total Pension
Liability
[1]
Plan Fiduciary
Net Position
[2]
Net Pension
Liability
[3]=[1] - [2]
Net Changes during 2022-23 43,435,851 24,421,182 19,014,669 Balance at June 30, 2023 [a] $ 672,424,577 $ 417,822,130 $ 254,602,447 [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.

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 $ 352,894,218 $ 254,602,447 $ 174,964,539
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, 2023 measurement date is 5.6 years, which is obtained by dividing the total service years of 5,882 (the sum of remaining lifetimes of active employees) by 1,043 (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, 2022), the net pension liability/(asset) is $235,587,778. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense/(income) of $38,843,183 for the plan.

As of June 30,
2024, the City had deferred outflows of resources related to pensions of $29,090,709, 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), $16,540,683 f or changes of assumptions $16,764,642, for differences between expected and actual experiences and $18,640,358 f or the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $ (265,734), for changes in assumptions $- f or differences between expected and actual experiences of $(265,734) 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
2024 $11,963,345
2025 $10,598,141
2026 $21,256,913
2027 $6,178,699
2028 $1,682,850
Remaining $0
CITYWIDE PENSION PLAN TOTALS Miscellaneous
Plan
Safety Fire
Plan
Safety Police
Plan
Citywide
Total
Net Pension Liability $ 204,022,868 $ 106,326,802 $ 254,602,447 $ 564,952,117 Deferred Outflows of Resources
Contributions Made Subsequent to Measurement
Date 26,995,742 12,282,354 29,090,709 68,368,805
Differences Between Expected and
Actual Experiences 596,712 5,921,548 16,764,642 23,282,902 Net Differences Between Projected and
Actual Earnings 22,593,440 11,428,393 18,640,358 52,662,191 Changes of Assumptions 11,187,329 7,043,517 16,540,683 34,771,529 Total Deferred Outflows of Resources $ 61,373,223 $ 36,675,812 $ 81,036,392 $ 179,085,427 Deferred Inflows of Resources
Differences Between Expected and
Actual Experience $ (622,421) $ (2,650,120) $ (265,734) $ (3,538,275) Total Deferred Inflows of Resources
(reclassed to Deferred Outflow of Resources) $ (622,421) $ (2,650,120) $ (265,734) $ (3,538,275) Pension Liability Expense $ 32,592,227 $ 15,225,470 $ 30,972,288 $ 78,789,985 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,
2024 the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently
receiving benefit payments 547
Active employees 321
868
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,
2024. 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
NOTE 18 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued) Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2023, 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. T
he total OPEB liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2023. The actuarial assumptions used in the June 30, 2023 valuation were based on the December 2022 experience 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, 2023
Discount Rate 5.25%
Inflation Rate 2.30%
Payroll Growth 2.8%
Salary Increases
Ranges from 14.61% to 3.34% based on year of service,
including inflation.

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

The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, and by adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return, after deducting inflation, but before deducting investment expenses, used in the derivation of the long-term expected rate of return assumption are summarized in the following table:

Asset Class
Target
Allocation
Long-Term (Arithmetic)
Expected Real Rate of
Return (1)
Domestic Equity 22.91% 6.60%
Developed International Equity 3.53 6.70
Emerging Markets Equity 2.02 8.00
Core Fixed Income 68.92 1.80
Real Estate 0.99 3.40
Short-Term Money Market 1.63 1.00
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
NOTE 18 - 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, 2023 and June 30, 2022.

Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(a) (b) (a) - (b)
Beginning balances $ 106,405,849 $ 83,523,054 $ 22,882,795 Changes for the year:

Service cost 1,003,993 - 1,003,993
Interest 5,022,201 - 5,022,201
Differences between expected and actual experience (12,240,245) - (12,240,245) Changes of assumptions and methods 11,974,278 - 11,974,278 Employer contributions - 2,815,008 (2,815,008)
Net investment income - 3,332,263 (3,332,263)
Benefit payments (3,398,008) (3,398,008) -
Administrative expense - (221,270) 221,270
Net changes 2,362,219 2,527,993 (165,774)
Ending balance $ 108,768,068 $ 86,051,047 $ 22,717,021
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, 2023, 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
(4.25%)
Discount Rate
(5.25%)
1% Increase
(6.25%)
Net OPEB liability as of June 30, 2023 $ 38,401,162 $ 22,717,022 $ 9,972,456 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, 2023, 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, 2023 $ 9,947,015 $ 22,717,022 $ 38,320,301 *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
NOTE 18 - 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 $4,667,530. At June 30, 2024, 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 $ 7,804,485 $ 1,249,029 $ 507,934 $ 81,291
Differences between
expected and actual
experience 6,025,785 - 392,172 -
Net difference between
projected and actual
earnings on OPEB
Plan investments 91,553 8,757,414 5,959 569,953
Net excess of projected
over actual earnings
on OPEB Plan
investments 4,640,273 - 302,000 -
City contributions
subsequent to the
measurement date - - (1) -
Total $ 18,562,096 $ 10,006,443 $ 1,208,064 $ 651,244
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
2025 $ (326,300) $ (21,236)
2026 1,312,498 85,421
2027 2,813,512 183,111
2028 115,668 7,528
Thereafter - -
$ 3,915,378 $ 254,824
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, 2024
Assessment District 03-1* (Brighton Place/Silver Creek II) $ - Assessment District 03-3* (Seven Oaks West III/Brighton Place) - Assessment District 04-1** (Countryside/The Homestead) - Assessment District 04-2** (BL/BV/ST@Allen Com) 510,000 Assessment District 04-3** (Solera/Rio Vista) 345,000
Assessment District 2020-1*** (City in the Hills) 1,640,633 Assessment District 05-3** (Liberty II/Village Green/Tesoro/Encanto) 1,290,000 Assessment District 06-1** (Etcheverry/Lin II/University Park) 1,275,000 Assessment District 07-2 (Sydney Harbour) 735,000
$ 5,795,633
*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 $88,055,000 at June 30, 2024 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
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
2023-2024 78,229,000 29,231,000 19,405,000 88,055,000
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, 2024, the City had $3,861,471 o n deposit with ACCEL out of a total of approximately $36,999,579.

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 r epresentative 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, 2024, ACCEL had no long-term debt. Included in total liabilities is an estimated retrospectively rated refund of $650,632. 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, 2024 is as follows:

Total assets $101,826,188
Total liabilities 74,865,150
Total members' net position $ 26,961,038
Total revenues $ 67,412,082
Total expenses 35,813,804
Net change in members' net position $ 31,598,278
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, unforseen repairs, 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, 2024 consisted of the following:

Governmental Funds:

Major Funds:

General Fund $ 5,060,511
Transient Occupancy Taxes Fund 17,850
Community Development Block Grant Fund 1,174,836
Gas Tax & Road Fund 9,877,785
Covid Relief Fund 4,742,930
Capital Outlay Fund 17,582,054
Park Improvement Fund 1,630,080
Transportation Development Fund 4,964,005
Non-Major Funds:

State (TDA) Transportation Fund -
State Safety Fund 76,308
Proprietary Funds:

Major Funds:

Wastewater Treatment Fund 9,770,106
Refuse Collection Fund 11,395
River & Agriculture Water Fund 34,449
Domestic Water Fund 209,508
General Aviation Fund 686
Offstreet Parking Fund 266,987
Internal Service Funds:

Self-Insurance Fund 475,000
Equipment Management Fund 14,382,404
Fiduciary Funds:

Custodial Funds:

Improvement District Fund 297,926
$ 70,574,820
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, 2024
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 1,729,089
City of Bakersfield - Coventry Apartments Housing Bond, Series 2007M 5,300,000 71,072
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 10,971,000 973,059
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 35,635,000 TOTAL $ 292,947,338
106

CITY OF BAKERSFIELD
Notes to the Financial Statements
NOTE 24 - RESTATEMENT OF BEGINNING NET POSITION OR FUND BALANCE During the fiscal year ended June 30, 2024, the City made the following error correction to restate the net position: for governmental activities related fund balance for: an error in revenue not properly recognized in the prior year for ARPA grant revenue. There were more expenses that were incurred for programs and deferred revenue should have been recognized (total of 3,878,183).

The Equipment Fund and the General Fixed Assets had additional Subscription-Based Information Technology Arrangements that were omitted in the prior year resulting in correction new position of $268,584 and $939,150 respectively See corresponding changes in statements on page 24, pages 31-32, and page 148.

Net Position Accounts
Activity
July 1, 2023
as previously
reported Adjustment
July 1, 2023,
as
restated
Net Position - Governmental Activities $ 1,419,941,624 $ (2,670,449) $ 1,417,271,175 Equipment Management Fund $ 110,814,747 $ 268,584 $ 111,083,331 Self-Insurance Fund $ - $ - $ -
Fund Balance Accounts
July 1, 2023
as previously
reported Adjustment
July 1, 2023,
as
restated
Covid Relief Fund $ 5,976,430 $ (3,878,183) $ 2,098,247 107
108

CITY OF BAKERSFIELD
Required Supplementary Information

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

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

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

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

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

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

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

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

The amounts carried forward from fiscal year ended
June 30, 2023 to fiscal year ended June 30, 2024 totaled $-. 109

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

Budgetary Comparison Schedule, General Fund
For the Fiscal Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 152,298,168 $ 152,298,168 $ 152,298,168 $ - Revenues:

Taxes 327,968,110 316,083,500 327,968,110 11,884,610
Licenses and permits 3,927,890 2,879,900 4,008,237 1,128,337 Intergovernmental 9,397,930 29,458,001 13,822,206 (15,635,795) Charges for services 17,867,939 33,830,343 31,077,922 (2,752,421) Fines, forfeitures and assessments 1,221,701 845,000 1,221,701 376,701 Interest income (loss) 8,144,698 503,000 8,148,296 7,645,296 Contributions and donations 151,574 511,830 248,536 (263,294) Other 2,351,604 1,694,109 2,379,613 685,504
Transfers from other funds 14,009,000 2,200,000 2,200,000 - Amount available for appropriation $ 385,040,446 $ 388,005,683 $ 391,074,621 $ 3,068,938 Expenditures:

General government $ 10,038,619 $ 38,661,964 $ 28,150,739 $ 10,511,225 Public safety - Police 81,047,476 184,799,374 164,643,230 20,156,144 Public safety - Fire 12,623,701 63,182,727 59,009,285 4,173,442 Public works 15,961,476 37,559,340 36,887,478 671,862
Recreation and parks 12,928,082 33,859,229 35,075,966 (1,216,737) Development services 6,359,857 18,820,392 15,938,038 2,882,354 Economic/Community development 1,162,406 31,689,113 8,321,292 23,367,821 Non-departmental 9,043,690 32,220,698 9,677,124 22,543,574 Transfers to other funds 28,516,350 26,644,035 26,644,035 - Total charges to appropriations 177,681,657 467,436,872 384,347,187 83,089,685 Amount of resources over (under)
charges to appropriations 207,358,789 (79,431,189) 6,727,434 86,158,623 Fund balance, June 30 $ 359,656,957 $ 72,866,979 $ 159,025,602 $ 86,158,623 110

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Transient Occupancy Taxes Fund For the Fiscal Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 7,291,635 $ 7,291,635 $ 7,291,635 $ - Revenues:

Taxes 12,123,813 10,500,000 12,123,813 1,623,813
Charges for services 14,835,625 9,293,600 14,835,625 5,542,025 Interest income (loss) 591,134 40,000 591,134 551,134
Amount available for appropriation $ 27,550,572 $ 19,833,600 $ 27,550,572 $ 7,716,972 Expenditures:

General government $ 12,330,617 $ 37,246,854 $ 13,766,565 $ 23,480,289 Non-departmental - 3,133,724 - 3,133,724
Transfers to other funds 8,783,500 8,799,255 8,783,500 15,755 Total charges to appropriations 21,114,117 49,179,833 22,550,065 26,629,768 Amount of resources over (under)
charges to appropriations 6,436,455 (29,346,233) 5,000,507 34,346,740 Fund balance, June 30 $ 13,728,090 $ (22,054,598) $ 12,292,142 $ 34,346,740 Budgetary Comparison Schedule, Community Development Block Grant Fund For the Fiscal Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ (86,759) $ (86,759) $ (86,759) $ - Revenues:

Intergovernmental 11,186,729 16,897,957 11,186,729 (5,711,228) Interest income 46,780 500 46,780 46,280
Loan payments 62,091 - 62,091 62,091
Other income 32,656 - 32,656 32,656
Transfer from other funds 32,656 - - -
Amount available for appropriation $ 11,360,912 $ 16,898,457 $ 11,328,256 $ (5,570,201) Expenditures:

Economic/Community development $ - $ 24,661,698 $ 6,502,928 $ 18,158,770 Capital outlay 271,553 13,417,752 4,542,460 8,875,292
Transfers to other funds 61,854 61,854 61,854 -
Total charges to appropriations 333,407 38,141,304 11,107,242 27,034,062 Amount of resources over (under)
charges to appropriations 11,027,505 21,242,847 221,014 21,463,861 Fund balance, June 30 $ 10,940,746 $ (21,329,606) $ 134,255 $ 21,463,861 111

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Gas Tax & Road Fund
For the Fiscal Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 13,606,792 $ 13,606,792 $ 13,606,792 $ - Revenues:

Intergovernmental 38,783,475 69,585,963 38,784,499 (30,801,464) Charges for services - 50,000 - (50,000)
Fines, forfeitures and assessments 40,977 50,000 40,977 (9,023) Interest income (loss) 614,349 (30,000) 614,349 644,349 Other income 385 - 19,958 19,958
Amount available for appropriation $ 39,439,186 $ 69,655,963 $ 39,459,783 $ (30,196,180) Expenditures:

Public works $ 2,430,687 $ 5,419,115 $ 3,800,306 $ 1,618,809 Capital outlay 6,971,659 156,765,899 27,257,651 129,508,248 Transfers to other funds 58,300 58,300 58,300 -
Total charges to appropriations (9,460,646) (162,243,314) (31,116,257) 131,127,057 Amount of resources over (under)
charges to appropriations 29,978,540 (92,587,351) 8,343,526 100,930,877 Fund balance, June 30 $ 43,585,332 $ (78,980,559) $ 21,950,318 $ 100,930,877 Budgetary Comparison Schedule, COVID Relief Fund
For the Fiscal Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 5,976,429 $ 5,976,429 $ 5,976,429 $ - Revenues:

Intergovernmental - 52,245,340 13,405,683 (38,839,657)
Interest income - 100,000 1,953,850 1,853,850
Other income 139,823 - - -
Amount available for appropriation $ 139,823 $ 52,345,340 $ 15,359,533 $ (36,985,807) Expenditures:

General Government $ - $ 545,278 $ 545,279 $ (1)
Economic/Community development $ - $ 73,765,748 $ 8,038,529 $ 65,727,219 Non-departmental - 5,356,007 1,920,053 3,435,954
Capital Outlay - 22,930,154 2,062,331 20,867,823
Transfers to other funds - 8,050,000 4,000,000 4,050,000 Total charges to appropriations - (110,647,187) (16,566,192) 94,080,995 Amount of resources over (under)
charges to appropriations 139,823 (58,301,847) (1,206,659) 57,095,188 Fund balance, June 30 $ 6,116,252 $ (52,325,418) $ 4,769,770 $ 57,095,188 112

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
Budgetary Comparison Schedule, Redevelopment Successor Agency Housing Fund For the Fiscal Year Ended June 30, 2024
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Fund Balance, July 1 $ 2,451,114 $ 2,451,114 $ 2,805,667 $ 354,553 Revenues:

Interest income (loss) 140,974 11,500 140,974 129,474
Other income 139,823 - 139,821 139,821
Amount available for appropriation $ 280,797 $ 11,500 $ 280,795 $ 269,295 Expenditures:

Capital outlay $ - $ 632,145 $ - $ 632,145
Economic/Community development - 915,637 - 915,637
Total charges to appropriations - (1,547,782) - 1,547,782 Amount of resources over (under)
charges to appropriations 280,797 (1,536,282) 280,795 1,817,077 Fund balance, June 30 $ 2,731,911 $ 914,832 $ 3,086,462 $ 2,171,630 113

CITY OF BAKERSFIELD
Required Supplementary Information (continued)

DEFINED PENSION PLAN
The Schedules of Changes in Net Pension Liability and Related Ratios as of June 30, 2024 are below:

MISCELLANEOUS PLAN [a][e]
Fiscal Year End: 2022 2024 2023 2022 2021
Total Pension Liability
Service Costs $ 12,622,224 $ 11,936,949 $ 10,008,798 $ 9,487,348 Interest on Total Pension Liability 46,193,018 44,607,191 43,128,230 41,409,296 Changes of Benefit Terms 649,034 - - -
Changes in Assumptions - 22,963,465 - -
Difference Between Expected and Actual Experience (85,372) (1,146,174) 3,580,266 (1,467,027) Benefit Payments [b] (35,417,578) (33,517,292) (31,741,505) (29,651,687) Net Change in Total Pension Liability $ 23,961,326 $ 44,844,139 $ 24,975,789 $ 19,777,930 Total Pension Liability - Beginning 680,298,046 635,453,907 610,478,118 590,700,188 Total Pension Liability - Ending [1] $ 704,259,372 $ 680,298,046 $ 635,453,907 $ 610,478,118 Plan Fiduciary Net Position
Contributions - Employer $ 23,160,666 $ 20,877,107 $ 19,503,572 $ 17,627,444 Contributions - Employee 5,287,398 4,920,321 4,617,600 4,310,604 Net Investment Income 29,653,560 (39,818,161) 98,463,929 20,997,830 Benefit Payments [b] (35,417,578) (33,517,292) (31,741,505) (29,651,687) Plan to Plan Resource Movement - - - 1,336
Administrative Expense (351,428) (327,523) (434,899) (595,862) Other Misc Income/(Expense) - - - -
Net Change in Plan Fiduciary Net Position $ 22,332,618 $ (47,865,548) $ 90,408,697 $ 12,689,665 Plan Fiduciary Net Position - Beginning $ 477,903,886 $ 525,769,434 $ 435,360,737 $ 422,671,072 Plan Fiduciary Net Position - Ending [2] 500,236,504 477,903,886 525,769,434 435,360,737 Plan Net Pension Liability - [1]-[2] $ 204,022,868 $ 202,394,160 $ 109,684,473 $ 175,117,381 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %71.03 %70.25 %82.74 %71.31 Covered Payroll [f] $ 70,045,636 $ 65,051,495 $ 59,434,668 $ 55,579,074 Plan Net Pension Liability as a Percentage
of Covered Payroll %291.27 %311.13 %184.55 %315.08
Schedules of Plan Contributions
Fiscal Year End 2024 2023 2022 2021
Actuarially Determined Contribution [c] $ 23,160,666 $ 20,877,107 $ 19,503,572 $ 17,627,444 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (23,160,666) $ (20,877,107) $ (19,503,572) $ (17,627,444) Covered Payroll [d] $ 70,045,636 $ 65,051,495 $ 59,434,668 $ 55,579,074 Contributions as a Percentage of Covered Employee Payroll %33.07 %32.09 %32.82 %31.72 [a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution. [d] Payroll from prior year was assumed to increase by the 2.75 percent payroll growth assumption. [e] Additional years' information will be displayed as it becomes available. [f] Covered payroll is the payroll on which contributions to the pension plan are based on.

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

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

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

CITY OF BAKERSFIELD
Required Supplementary Information (continued)
MISCELLANEOUS PLAN [a][e]
Fiscal Year End: 2022 2020 2019 2018 2017 2016
Total Pension Liability
Service Costs $ 9,761,680 $ 9,865,219 $ 10,121,201 $ 9,229,271 $ 9,371,317 Interest on Total Pension Liability 40,017,148 38,377,061 37,355,571 36,457,017 34,880,653 Changes of Benefit Terms - - - - -
Changes in Assumptions - (3,069,067) 31,112,110 - (8,541,600) Difference Between Expected and Actual Experience 1,681,960 (4,948,406) (8,386,592) (2,271,125) (682,929) Benefit Payments [b] (27,756,407) (26,111,942) (23,977,515) (21,951,615) (20,655,868) Net Change in Total Pension Liability $ 23,704,381 $ 14,112,865 $ 46,224,775 $ 14,371,573 $ Total Pension Liability - Beginning 566,995,807 552,882,942 506,658,167 485,194,619 470,823,046 Total Pension Liability - Ending [1] $ 590,700,188 566,995,807 552,882,942 485,194,619 Plan Fiduciary Net Position
Contributions - Employer $ 15,201,992 $ 13,222,781 $ 11,107,872 $ 10,734,470 $ 10,017,697 Contributions - Employee 3,956,979 4,245,043 4,188,806 4,400,305 4,653,169 Net Investment Income 26,318,678 32,008,762 39,138,504 1,891,631 7,966,951 Benefit Payments [b] (27,756,407) (26,111,942) (23,977,515) (21,951,615) (20,655,868) Plan to Plan Resource Movement - (939) - (40,308) -
Administrative Expense (289,187) (597,766) (522,173) (218,704) (403,815) Other Misc Income/(Expense) 939 (1,135,167) - - -
Net Change in Plan Fiduciary Net Position $ 17,432,994 $ 21,630,772 $ 29,935,494 $ 1,578,134 $ Plan Fiduciary Net Position - Beginning $ 405,238,078 $ 383,607,306 $ 353,671,812 $ 358,856,033 $ 357,277,899 Plan Fiduciary Net Position - Ending [2] 422,671,072 405,238,078 383,607,306 358,856,033 Plan Net Pension Liability - [1]-[2] $ 168,029,116 $ 161,757,729 $ 169,275,636 $ 126,338,586 $ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %71.55 %71.47 %73.00 %73.00 %- Covered Payroll [f] $ 55,934,450 $ 55,301,410 $ 56,388,660 $ 56,837,487 $ 57,065,633 Plan Net Pension Liability as a Percentage
of Covered Payroll %300.40 %292.50 %221.00 %221.00 %-
Schedules of Plan Contributions
Fiscal Year End 2020 2019 2018 2017 2016
Actuarially Determined Contribution [c] $ 15,201,992 $ 13,222,781 $ 11,107,872 $ 10,734,470 $ 10,017,697 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (15,201,992) $ (13,222,781) $ (11,107,872) $ (10,734,470) $ (10,017,697) Covered Payroll [d] $ 55,934,460 $ 55,301,410 $ 56,388,660 $ 56,837,487 $ 57,065,623 Contributions as a Percentage of Covered Employee Payroll %27.18 %23.91 %19.70 %18.89 %- [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 2024 2023 2022 2021
Total Pension Liability
Service Costs $ 5,847,752 $ 5,613,674 $ 5,209,767 $ 4,666,713 Interest on Total Pension Liability 23,459,711 22,311,323 21,862,120 21,040,275 Changes of Benefit Terms 117,830 - - -
Changes in Assumptions - 10,750,631 - -
Difference Between Expected and Actual Experience 6,082,093 (3,773,126) 1,665,276 287,661 Benefit Payments [b] (18,213,049) (16,984,220) (16,341,306) (15,957,610) Net Change in Total Pension Liability $ 17,294,337 $ 17,918,282 $ 12,395,857 $ 10,037,039 Total Pension Liability - Beginning 339,978,553 322,060,271 309,664,414 299,627,375 Total Pension Liability - Ending [1] $ 357,272,890 $ 339,978,553 $ 322,060,271 $ 309,664,414 Plan Fiduciary Net Position
Contributions - Employer $ 11,352,355 $ 10,226,742 $ 9,545,170 $ 8,572,787 Contributions - Employee 2,309,541 2,026,395 1,928,537 1,720,912 Net Investment Income 14,917,803 (20,199,779) 49,937,203 10,642,420 Benefit Payments [b] (18,213,049) (16,984,220) (16,341,306) (15,957,610) Plan to Plan Resource Movement - - - (1,336)
Administrative Expense (177,041) (165,611) (220,770) (304,975) Other Misc Income/(Expense) - - - -
Net Change in Plan Fiduciary Net Position $ 10,189,609 $ (25,096,473) $ 44,848,834 $ 4,672,198 Plan Fiduciary Net Position - Beginning $ 240,756,479 $ 265,852,952 $ 221,004,118 $ 216,331,920 Plan Fiduciary Net Position - Ending [2] 250,946,088 240,756,479 265,852,952 221,004,118 Plan Net Pension Liability - [1]-[2] $ 106,326,802 $ 99,222,074 $ 56,207,319 $ 88,660,296 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %70.24 %70.82 %82.55 %71.37 Covered Payroll [f] $ 19,924,198 $ 19,152,761 $ 19,592,955 $ 17,426,111 Plan Net Pension Liability as a Percentage
of Covered Payroll %533.66 %518.06 %286.88 %508.78
Schedules of Plan Contributions
Fiscal Year End 2024 2023 2022 2021
Actuarially Determined Contribution [c] $ 11,352,355 $ 10,226,742 $ 9,545,170 $ 8,572,787 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (11,352,355) $ (10,226,742) $ (9,545,170) $ (8,572,787) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 19,924,198 $ 19,152,761 $ 19,592,955 $ 17,426,111 Contributions as a Percentage of Covered Payroll %56.98 %53.40 %48.72 %49.20 [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 2020 2019 2018 2017 2016
Total Pension Liability
Service Costs $ 4,554,882 $ 4,690,651 $ 4,691,377 $ 3,982,592 $ 4,038,459 Interest on Total Pension Liability 20,357,836 19,788,058 19,273,519 18,906,125 18,125,192 Changes of Benefit Terms - - - - -
Changes in Assumptions - (1,346,780) 16,102,827 - (4,419,326) Difference Between Expected and Actual Experience (1,450,007) (1,205,127) (3,292,736) 880,783 (357,892) Benefit Payments [b] (15,465,768) (14,518,038) (13,914,493) (13,350,272) (12,266,190) Net Change in Total Pension Liability $ 7,996,943 $ 7,408,764 $ 22,860,494 $ 10,419,228 $ 5,120,243 Total Pension Liability - Beginning 291,630,432 284,221,668 261,361,174 250,941,946 245,821,703 Total Pension Liability - Ending [1] $ 299,627,375 $ 291,630,432 $ 284,221,668 $ 261,361,174 $ 250,941,946 Plan Fiduciary Net Position
Contributions - Employer $ 7,433,992 $ 6,452,089 $ 5,766,115 $ 5,299,399 $ 4,717,136 Contributions - Employee 1,590,164 1,612,168 1,585,475 1,575,291 1,496,855 Net Investment Income 13,562,717 16,662,233 20,512,738 920,604 4,369,856 Benefit Payments [b] (15,465,768) (14,518,038) (13,914,493) (13,350,272) (12,266,190) Plan to Plan Resource Movement - (487) - - (13)
Administrative Expense (149,404) (311,742) (275,179) (117,046) (216,134) Other Misc Income/(Expense) 487 (592,003) - - -
Net Change in Plan Fiduciary Net Position $ 6,972,188 $ 9,304,220 $ 13,674,656 $ (5,672,024) $ (1,898,490) Plan Fiduciary Net Position - Beginning $ 209,359,732 $ 200,055,512 $ 186,380,856 $ 192,052,880 $ 193,951,370 Plan Fiduciary Net Position - Ending [2] 216,331,920 209,359,732 200,055,512 186,380,856 192,052,880 Plan Net Pension Liability - [1]-[2] $ 83,295,455 $ 82,270,700 $ 84,166,156 $ 74,980,318 $ 58,889,066 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %72.20 %71.79 %70.39 %71.31 %76.53 Covered Payroll [f] $ 16,904,368 $ 17,260,904 $ 17,071,347 $ 16,365,695 $ 16,338,791 Plan Net Pension Liability as a Percentage
of Covered Payroll %492.75 %476.63 %493.03 %458.16 %360.42 Schedules of Plan Contributions
Fiscal Year End 2020 2019 2018 2017 2016
Actuarially Determined Contribution [c] $ 7,433,992 $ 6,452,089 $ 5,766,115 $ 5,299,399 $ 4,717,136 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (7,433,992) $ (6,452,089) $ (5,766,115) $ (5,299,399) $ (4,717,136) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 16,904,368 $ 17,260,904 $ 17,071,347 $ 16,365,695 $ 16,338,791 Contributions as a Percentage of Covered Payroll %43.98 %37.38 %33.78 %32.38 %- [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 POLICE PLAN [a][e]
Fiscal Year end: 2022 2024 2023 2022 2021
Total Pension Liability
Service Costs $ 14,405,535 $ 12,960,162 $ 11,343,912 $ 10,543,138 Interest on Total Pension Liability 43,933,460 41,120,417 39,064,145 37,082,164 Changes of Benefit Terms 247,178 - - -
Changes in Assumptions - 25,729,951 - -
Difference Between Expected and Actual Experience 15,706,615 1,142,970 6,572,677 (1,024,983) Benefit Payments [b] (30,856,937) (29,119,679) (27,865,756) (25,890,920) Net Change in Total Pension Liability $ 43,435,851 $ 51,833,821 $ 29,114,978 $ 20,709,399 Total Pension Liability - Beginning 628,988,726 577,154,905 548,039,927 527,330,528 Total Pension Liability - Ending [1] $ 672,424,577 $ 628,988,726 $ 577,154,905 $ 548,039,927 Plan Fiduciary Net Position
Contributions - Employer $ 25,617,850 $ 22,990,827 $ 21,113,667 $ 19,171,916 Contributions - Employee 5,305,090 4,873,658 4,277,875 3,896,766 Net Investment Income 24,644,468 (32,831,559) 80,187,665 16,918,079 Benefit Payments [b] (30,856,937) (29,119,679) (27,865,756) (25,890,920) Plan to Plan Resource Movement - - - -
Administrative Expense (289,289) (266,465) (350,019) (474,763) Other Misc Income/(Expense) - - - -
Net Change in Plan Fiduciary Net Position $ 24,421,182 $ (34,353,218) $ 77,363,432 $ 13,621,078 Plan Fiduciary Net Position - Beginning $ 393,400,948 $ 427,754,161 $ 350,390,729 $ 336,769,651 Plan Fiduciary Net Position - Ending [2] 417,822,130 393,400,943 427,754,161 350,390,729 Plan Net Pension Liability - [1]-[2] $ 254,602,447 $ 235,587,783 $ 149,400,744 $ 197,649,198 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %62.14 %62.54 %74.11 %63.94 Covered Payroll [f] $ 44,626,813 $ 40,174,093 $ 39,374,913 $ 36,318,078 Plan Net Pension Liability as a Percentage
of Covered Payroll %570.51 %586.42 %379.43 %544.22
Schedules of Plan Contributions
Fiscal Year End 2024 2023 2022 2021
Actuarially Determined Contribution [c] $ 25,617,850 $ 22,990,827 $ 21,113,667 $ 19,171,916 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (25,617,850) $ (22,990,827) $ (21,113,667) $ (19,171,916) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 44,626,813 $ 40,174,093 $ 39,374,913 $ 36,318,078 Contributions as a Percentage of Covered Payroll %57.40 %57.23 %53.62 %52.79 [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 2020 2019 2018 2017 2016
Total Pension Liability
Service Costs $ 10,370,024 $ 10,220,547 $ 10,633,847 $ 9,484,234 $ 8,534,322 Interest on Total Pension Liability 35,663,211 34,128,107 32,733,299 31,506,218 29,736,286 Changes of Benefit Terms - - - - -
Changes in Assumptions - (2,726,217) 29,167,825 - (7,760,962) Difference Between Expected and Actual Experience 1,031,548 1,792,996 (3,619,242) 4,042,528 872,107 Benefit Payments [b] (24,607,704) (23,362,241) (22,076,716) (20,226,151) (19,077,307) Net Change in Total Pension Liability $ 22,457,079 $ 20,053,192 $ 46,839,013 $ 24,806,829 $ 12,304,446 Total Pension Liability - Beginning 504,873,449 484,820,257 437,981,244 413,174,415 400,869,969 Total Pension Liability - Ending [1] $ 527,330,528 504,873,449 484,820,257 437,981,244 413,174,415 Plan Fiduciary Net Position
Contributions - Employer $ 17,184,398 $ 15,159,139 $ 14,646,334 $ 13,792,487 $ 12,287,267 Contributions - Employee 3,604,241 3,650,956 3,426,099 3,794,305 3,238,371 Net Investment Income 20,791,987 25,183,248 30,690,942 1,419,472 6,082,288 Benefit Payments [b] (24,607,704) (23,362,241) (22,076,716) (20,226,151) (19,077,307) Plan to Plan Resource Movement - (740) - 40,308 -
Administrative Expense (228,376) (468,655) (405,238) (168,097) (313,848) Other Misc Income/(Expense) 740 (889,985) - - -
Net Change in Plan Fiduciary Net Position $ 16,745,286 $ 19,271,722 $ 26,281,421 $ (1,347,676) $ 2,216,771 Plan Fiduciary Net Position - Beginning $ 320,024,365 $ 300,752,643 $ 274,471,222 $ 275,818,898 $ 273,602,127 Plan Fiduciary Net Position - Ending [2] 336,769,651 320,024,365 300,752,643 274,471,222 275,818,898 Plan Net Pension Liability - [1]-[2] $ 190,560,877 $ 184,849,084 $ 184,067,614 $ 163,510,022 $ 137,355,517 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability %63.86 %63.39 %62.03 %62.67 %66.76 Covered Payroll [f] $ 35,362,400 $ 34,555,725 $ 35,225,410 $ 35,046,314 $ 30,842,116 Plan Net Pension Liability as a Percentage
of Covered Payroll %538.88 %534.93 %522.54 %466.55 %445.35 Schedules of Plan Contributions
Fiscal Year End 2020 2019 2018 2017 2016
Actuarially Determined Contribution [c] $ 17,184,398 $ 15,159,139 $ 14,646,334 $ 13,792,487 $ 12,287,267 Contributions in Relation to the Actuarially
Determined Contribution [c] $ (17,184,398) $ (15,159,139) $ (14,646,334) $ (13,792,487) $ (12,287,267) Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0
Covered Payroll [d] $ 35,362,400 $ 34,555,725 $ 35,225,410 $ 35,046,314 $ 30,496,107 Contributions as a Percentage of Covered Payroll %48.60 %43.87 %41.58 %39.36 %- [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] 2024 2023 2022 2021 2020 2019
Service Cost [b] $ 1,003,993 $ 1,093,750 $ 1,303,741 $ 1,570,476 $ 1,861,902 $ 1,975,894 Interest 5,022,201 5,065,754 5,765,058 6,452,159 7,113,376 6,986,837 Difference between expected and actual
experience (12,240,245) 251,076 (10,056,063) (11,723,133) (20,451,948) (762,025) Changes of assumptions and methods 11,974,278 (3,211,518) (1,005,648) (5,621,334) 3,844,143 - Benefit payments (3,398,008) (4,640,002) (4,263,425) (4,046,134) (6,604,007) (4,507,862) Net Change in Total OPEB Liability 2,362,219 (1,440,940) (8,256,337) (13,367,966) (14,236,534) 3,692,844 Total OPEB Liability - Beginning 106,405,849 107,846,789 116,103,126 129,471,092 143,707,626 140,014,782 Total OPEB Liability - Ending (a) $ 108,768,068 $ 106,405,849 $ 107,846,789 $ 116,103,126 $ 129,471,092 $ 143,707,626 Plan Fiduciary Net Position
Contributions - employer $ 2,815,008 $ 6,207,752 $ 6,852,674 $ 6,826,986 $ 7,940,057 $ 7,527,447 Net investment income 3,332,263 (10,063,094) 10,311,017 4,544,160 4,882,723 2,017,934 Benefit payments (3,398,008) (4,640,002) (4,263,425) (4,046,134) (6,604,007) (4,507,862) Administrative expense (221,270) (241,565) (231,118) (211,914) (196,306) (188,705) Net Change in Plan Fiduciary Net
Position 2,527,993 (8,736,909) 12,669,148 7,113,098 6,022,467 4,848,814 Plan Fiduciary Net Position - Beginning 83,523,054 92,259,963 79,590,815 72,477,717 66,455,250 61,606,436 Plan Fiduciary Net Position - Ending (b) 86,051,047 83,523,054 92,259,963 79,590,815 72,477,717 66,455,250 Plan's Net OPEB Liability - Ending (a)-
(b) $ 22,717,021 $ 22,882,795 $ 15,586,826 $ 36,512,311 $ 56,993,375 $ 77,252,376 Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability %79.11 %78.49 %85.55 %68.55 %55.98 %46.24 Covered payroll 29,224,065 35,014,171 39,698,602 39,698,602 39,698,602 46,166,357 Plan Net OPEB Liability as Percentage
of Covered Payroll %77.73 %65.35 %39.26 %91.97 %143.57 %167.33 [a] Additional years' information will be displayed as it becomes available. [b] The service cost is based on previous years' valuation. [c] Covered payroll is the payroll on which contributions to the pension plan are based on.. 120

CITY OF BAKERSFIELD
Required Supplementary Information (continued)

SCHEDULE OF OPEB CONTRIBUTIONS
Last Ten Fiscal Years
Year Ended
June 30
Actuarially
Determined
Contributions in
Relation
Contribution
Deficiency
Employee
Covered
Contributions
as a Percentage
of Covered Employee
Date Contributions (ADC) To ADC (Excess) Payroll Payroll 2015 6,539,299 6,950,125 (410,826) 53,368,986 13.02%
2016 6,539,299 8,038,622 (1,499,323) 50,985,920 15.77%
2017 7,530,031 5,645,839 1,884,192 44,930,761 12.57%
2018 7,530,031 5,050,000 2,480,031 44,930,761 11.24%
2019 6,973,711 7,527,447 (553,736) 46,166,357 16.31%
2020 6,973,711 7,940,057 (966,346) 46,166,357 17.20%
2021 4,636,647 6,826,986 (2,190,339) 39,698,602 17.20%
2022 4,636,647 6,852,674 (2,216,027) 36,998,602 18.52%
2023 2,661,016 6,207,752 (3,546,736) 35,014,171 17.73%
2024 2,640,978 2,815,008 (174,030) 29,224,065 9.63%
Notes to the Schedule of OPEB Contributions
Actuarial cost method Projected Unit Credit
Amortization Method 30-year, level dollar payment
Remaining amortization period 14 years for outstanding balances as of June 30, 2023 Asset vaulation method Market value
Actuarial assumptions
Discount rate 4.75%
Inflation rate 2.30%
Payroll Growth 2.80%
Other assumptions
Same as those used in the June 30, 2021 GASB 74/75 actuarial valuation dated October 13, 2022
121
122

CITY OF BAKERSFIELD
Supplementary Information
Contents Pages(s)
General Fund
Balance Sheet 126
Schedule of Revenues by Function - Budget and Actual 127 Schedule of Expenditures by Division - Budget and Actual 128 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Public Safety and Vital Services Funds 129 Special Revenue Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 131
Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual 137
Capital Projects Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 139
Non-Major Governmental Funds
Combining Balance Sheet 141
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
143
Internal Service Funds
Combining Statement of Net Position 146
Combining Statement of Activities and Changes in Net Position 147 Combining Statement of Cash Flows
Fiduciary Funds
Statement of Changes in Assets and Liabilities - Fiduciary Funds (Custodial)
150
Combining Statements of Fiduciary Net Position 150
Combining Statements of Changes in Fiduciary Net Position 154 Long-term Debt Recorded in Private Purpose Trust Fund 156 123
General Fund
This fund was established to account for the revenues and expenditures to carry out basic governmental activities of the City of Bakersfield such as general government, public safety, public works and community services.

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

This fund accounts for all financial transactions not accounted for in another fund. 124
125

CITY OF BAKERSFIELD
Balance Sheet
General Fund
June 30, 2024
General Fund
Assets:

Cash and investments $ 119,051,692
Accounts receivable, net 1,642,945
Interest receivable 1,493,274
Due from other governmental agencies 46,791,529
Due from other funds 3,474,265
Lease receivable 349,709
Prepaid items 61,423
Total assets $ 172,864,837
Liabilities, Deferred Inflows of Resources and Fund Balance:

Liabilities:

Accounts payable $ 6,895,639
Due to other governmental agencies 2,387,032
Advances from grantors and third parties 2,331,073
Total liabilities 11,613,744
Deferred Inflows of Resources:

Deferred Inflow Leases 325,682
Deferred revenue 1,899,808
Fund Balance:

Nonspendable 100,147
Committed
Cash basis reserve 54,037,226
Contractual obligations 4,093,683
Appropriations for new year budget 32,000,000
Assigned
Petty cash 34,270
Non-contractual encumbrances 966,829
Compensated absences 2,095,329
Public Safety Vital Services 16,926,044
Unassigned 48,772,075
Total fund balance 159,025,603
Total liabilities, deferred inflows of resources and fund balance $ 172,864,837 126

CITY OF BAKERSFIELD
Schedule of Revenues by Function - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2024
Budget Actual
Variance with
Final Budget
Revenues:

Taxes:

Property taxes $ 106,008,500 $ 111,318,789 $ 5,310,289
Sales and use taxes 199,225,000 203,937,875 4,712,875
Property transfer tax 1,500,000 1,512,943 12,943
Utility franchise tax 5,350,000 6,197,033 847,033
Business license tax 4,000,000 5,001,470 1,001,470
Total taxes 316,083,500 327,968,110 11,884,610
Licenses and permits:

Building permits 1,800,000 2,886,578 1,086,578
Planning permits 79,000 75,473 (3,527)
Public works permits 678,000 713,905 35,905
Police permits 201,700 224,823 23,123
Other licenses and permits 121,200 107,458 (13,742)
Total licenses and permits 2,879,900 4,008,237 1,128,337 Intergovernmental:

Federal grants 2,596,472 1,203,723 (1,392,749)
State of California 11,027,811 7,135,573 (3,892,238)
Other grants 15,833,718 5,482,910 (10,350,808)
Total intergovernmental 29,458,001 13,822,206 (15,635,795) Charges for services:

Building 3,477,500 3,500,245 22,745
Planning 859,521 711,147 (148,374)
Public works 1,656,650 1,666,594 9,944
Police 981,881 1,111,950 130,069
Fire 8,380,000 8,746,332 366,332
Recreation and parks 906,291 1,015,075 108,784
Interfund charges 17,300,000 14,096,886 (3,203,114)
Other charges 268,500 229,693 (38,807)
Total charges for services 33,830,343 31,077,922 (2,752,421) Fines, forfeitures, and assessments 845,000 1,221,701 376,701 Miscellaneous:

Interest income (loss) 503,000 4,763,172 4,260,172
Net increase (decrease) in the fair value of investments - 3,385,124 3,385,124 Contributions and donations 511,830 248,536 (263,294)
Other income 1,694,109 2,379,613 685,504
Total miscellaneous 2,708,939 10,776,445 8,067,506
Total revenues $ 385,805,683 $ 388,874,621 $ 3,068,938
127

CITY OF BAKERSFIELD
Schedule of Expenditures by Division - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2024
Budget Actual
Variance with
Final Budget
General Government:

Mayor & City council $ 1,275,942 $ 1,366,456 $ (90,514) City manager 17,701,672 8,607,081 9,094,591
City clerk 1,188,086 988,920 199,166
Human resources 2,928,140 2,621,463 306,677
Information technology 9,018,859 8,656,065 362,794
Financial services 3,760,379 3,683,388 76,991
City attorney 2,788,886 2,227,366 561,520
Total general government 38,661,964 28,150,739 10,511,225 Public Safety:

Public safety - Police 184,799,374 164,643,230 20,156,144 Public safety - Fire 63,182,727 59,009,285 4,173,442
Total public safety 247,982,101 223,652,515 24,329,586
Public Works:

Administration 3,305,938 3,433,141 (127,203)
Engineering 9,342,942 8,750,816 592,126
General services 14,562,193 14,550,595 11,598
Streets and roads 10,348,267 10,152,926 195,341
Total public works 37,559,340 36,887,478 671,862
Recreation and Parks:

Administration 1,823,375 1,838,578 (15,203)
Recreation 3,907,222 4,168,490 (261,268)
Parks 28,128,632 29,068,898 (940,266)
Total recreation and parks 33,859,229 35,075,966 (1,216,737) Development Services:

Planning 5,107,793 3,522,095 1,585,698
Building 13,712,599 12,415,943 1,296,656
Total development services 18,820,392 15,938,038 2,882,354 Economic/Community Development 31,689,113 8,321,292 23,367,821 Non-departmental 32,220,698 9,677,124 22,543,574
Contingency - - -
Total General Fund Expenditures $ 440,792,837 $ 357,703,152 $ 83,089,685 128

CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Public Safety and Vital Services (PSVS) Funds (sub-fund of General Fund) For the Fiscal Year Ended June 30, 2024
PSVS Funds
Revenues:

Taxes $ 102,237,479 $ - $ 102,237,479
Charges for services 56,383 - 56,383
Interest income (loss) 1,559,377 3,868,815 5,428,192
Other income 519,804 - 519,804
Total revenues 104,373,043 3,868,815 108,241,858
Expenditures
Current:

General government 9,279,850 - 9,279,850
Public safety - Police 40,577,053 - 40,577,053
Public safety - Fire 6,406,928 - 6,406,928
Public works 3,633,390 1,350 3,634,740
Recreation and parks 5,115,233 - 5,115,233
Development Services 5,697,295 - 5,697,295
Capital outlay - 23,189,663 23,189,663
Total expenditures 70,709,749 23,191,013 93,900,762
Excess (deficiency) of
revenues
over (under) expenditures 33,663,294 (19,322,198) 14,341,096 Other financing sources
(uses):

Transfers in - 16,586,910 16,586,910
Transfers out (23,007,350) - (23,007,350)
Total other financing
sources (uses) (23,007,350) 16,586,910 (6,420,440)
Net change in fund balance 10,655,944 (2,735,288) 7,920,656 Fund balances - July 1 44,353,839 58,310,812 102,664,651 Fund balances - June 30 $ 55,009,783 $ 55,575,524 $ 110,585,307 129
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.
130

CITY OF BAKERSFIELD
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - All Special Revenue Funds
Year Ended June 30, 2024
Transient Occupancy Taxes
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ 10,500,000 $ 12,123,813 $ 1,623,813
Licenses and permits - - -
Intergovernmental - - -
Charges for services 9,293,600 14,835,625 5,542,025
Fines, forfeitures, and assessments - - -
Interest income (loss) 40,000 591,134 551,134
Loan payments - - -
Other income - - -
Total revenues 19,833,600 27,550,572 7,716,972
Expenditures
Current:

General government 37,246,854 13,766,565 23,480,289
Public safety - Police - - -
Public safety - Fire - - -
Public works - - -
Recreation and parks - - -
Economic/Community development - - -
Non-departmental 3,133,724 - 3,133,724
Capital outlay:

Transportation:

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

Parks and landscaping - - -
Other improvements - - -
Total expenditures 40,380,578 13,766,565 26,614,013
Excess (deficiency) of revenues over (under) expenditures (20,546,978) 13,784,007 34,330,985 Other financing sources (uses):

Transfers out (8,799,255) (8,783,500) 15,755
Total other financing sources (uses) (8,799,255) (8,783,500) 15,755 Net change in fund balances (29,346,233) 5,000,507 34,346,740 Fund balances - beginning 7,291,635 7,291,635 -
Fund balances - ending $ (22,054,598) $ 12,292,142 $ 34,346,740 131
Community Development Block Grant Rental and Downpayment Assistance Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ - $ - $ -
- - - - - -
16,897,957 11,186,729 (5,711,228) - - -
- - - - - -
- - - - - -
500 46,780 46,280 (500) 604 1,104
- 62,091 62,091 - 6,666 6,666
- 32,656 32,656 - - -
16,898,457 11,328,256 (5,570,201) (500) 7,270 7,770
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
24,661,698 6,502,928 18,158,770 24,678,103 - 24,678,103 - - - - - -
- - - - - -
150,000 - 150,000 - - -
- - - - - -
9,021,173 2,886,329 6,134,844 - - -
1,904,870 690,933 1,213,937 - - -
2,341,709 965,197 1,376,512 - - -
38,079,450 11,045,387 27,034,063 24,678,103 - 24,678,103 (21,180,993) 282,869 21,463,862 (24,678,603) 7,270 24,685,873 (61,854) (61,854) - - - -
(61,854) (61,854) - - - -
(21,242,847) 221,015 21,463,862 (24,678,603) 7,270 24,685,873 (86,759) (86,759) - 68,005 68,005 -
$ (21,329,606) $ 134,256 $ 21,463,862 $ (24,610,598) $ 75,275 $ 24,685,873 132

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, 2024
Covid Relief
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental 52,245,340 13,405,683 (38,839,657)
Charges for services - - -
Fines, forfeitures, and assessments - - -
Interest income (loss) 100,000 1,953,850 1,853,850
Loan payments - - -
Other income - - -
Total revenues 52,345,340 15,359,533 (36,985,807)
Expenditures
Current:

General government 545,278 545,279 (1)
Public safety - Police - - -
Public safety - Fire - - -
Public works - - -
Recreation and parks - - -
Economic/Community development 73,765,748 8,038,529 65,727,219 Non-departmental 5,356,007 1,920,053 3,435,954
Capital outlay:

Transportation:

Traffic control - - -
Streets / Freeways 8,058,800 1,979,524 6,079,276
Bridges - - -
Curbs, gutters and sidewalks - - -
Public facilities:

Parks and landscaping - - -
Other improvements 14,871,354 82,807 14,788,547
Total expenditures 102,597,187 12,566,192 (48,295,351)
Excess (deficiency) of revenues over (under) expenditures (50,251,847) 2,793,341 11,309,544 Other financing sources (uses):

Transfers out (8,050,000) (4,000,000) (4,050,000)
Total other financing sources (uses) (8,050,000) (4,000,000) (4,050,000) Net change in fund balances (58,301,847) (1,206,659) 7,259,544 Fund balances - beginning 5,976,429 5,976,429 (15,762,597) Fund balances - ending $ (52,325,418) $ 4,769,770 $ (8,503,053) 133
Gas Tax & Road Fund State (TDA) Transportation
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ - $ - $ -
- - - - - -
69,585,963 38,784,499 (30,801,464) (1,050,505) 643,130 1,693,635 - - - - - -
50,000 40,977 (9,023) - - -
(30,000) 614,349 644,349 (500) (2,086) (1,586)
- - - - - -
- 19,958 19,958 - - -
69,605,963 39,459,783 (30,146,180) (1,051,005) 641,044 1,692,049 - - - - - -
- - - - - -
- - - - - -
5,419,115 3,800,306 1,618,809 819,675 509,339 310,336
- - - 38,620 16,071 22,549
- - - - - -
- - - - - -
21,087,639 1,430,626 19,657,013 - - -
107,544,441 25,443,915 82,100,526 - - -
919,240 30,983 888,257 - - -
27,214,579 352,127 26,862,452 207,846 - 207,846
- - - - - -
- - - 1,650,148 115,634 1,534,514
162,185,014 31,057,957 131,127,057 2,716,289 641,044 2,075,245 (92,579,051) 8,401,826 100,980,877 (3,767,294) - 3,767,294 (58,300) (58,300) - - - -
(58,300) (58,300) - - - -
(92,637,351) 8,343,526 100,980,877 (3,767,294) - 3,767,294 13,606,792 13,606,792 - - - -
$ (79,030,559) $ 21,950,318 $ 100,980,877 $ (3,767,294) $ - $ 3,767,294 134

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, 2024
State Safety Fund
Budget Actual
Variance with
Final Budget
Revenues
Taxes $ - $ - $ -
Licenses and permits (351,000) 373,810 724,810
Intergovernmental (1,504,177) 1,177,544 2,681,721
Charges for services (1,525,500) 1,740,436 3,265,936
Fines, forfeitures, and assessments (1,570,000) 1,431,344 3,001,344 Interest income (loss) (21,000) 180,639 201,639
Loan payments - - -
Other income - - -
Total revenues (4,971,677) 4,903,773 9,875,450
Expenditures
Current:

General government - - -
Public safety - Police 4,881,686 1,581,988 3,299,698
Public safety - Fire 2,297,652 2,003,116 294,536
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 7,179,338 3,585,104 3,594,234
Excess (deficiency) of revenues over (under) expenditures (12,151,015) 1,318,669 13,469,684 Other financing sources (uses):

Transfers out (1,287,200) (1,287,200) -
Total other financing sources (uses) (1,287,200) (1,287,200) - Net change in fund balances (13,438,215) 31,469 13,469,684 Fund balances - beginning 3,064,999 3,064,999 -
Fund balances - ending $ (10,373,216) $ 3,096,468 $ 13,469,684 135
Redevelopment Successor Agency - Housing Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ 10,500,000 $ 12,123,813 $ 1,623,813
- - - (351,000) 373,810 724,810
- - - 136,174,578 65,197,585 (70,976,993)
- - - 7,768,100 16,576,061 8,807,961
- - - (1,520,000) 1,472,321 2,992,321
11,500 140,974 129,474 100,000 3,526,244 3,426,244
- - - - 68,757 68,757
- 139,823 139,823 - 192,437 192,437
11,500 280,797 269,297 152,671,678 99,531,028 (53,140,650) - - - 37,792,132 14,311,844 23,480,290
- - - 4,881,686 1,581,988 3,299,698
- - - 2,297,652 2,003,116 294,536
- - - 6,238,790 4,309,645 1,929,145
- - - 38,620 16,071 22,549
915,637 - 915,637 124,021,186 14,541,457 109,479,729
- - - 8,489,731 1,920,053 6,569,678
- - - 21,087,639 1,430,626 19,657,013
- - - 115,753,241 27,423,439 76,171,250
- - - 919,240 30,983 888,257
- - - 36,443,598 3,238,456 33,205,142
- - - 1,904,870 690,933 1,213,937
632,145 - 632,145 19,495,356 1,163,638 (11,245,376)
1,547,782 - 1,547,782 379,363,741 72,662,249 264,965,848 (1,536,282) 280,797 1,817,079 (226,692,063) 26,868,779 211,825,198 - - - (18,256,609) (14,190,854) 4,065,755
- - - (18,256,609) (14,190,854) 4,065,755
(1,536,282) 280,797 1,817,079 (244,948,672) 12,677,925 215,890,953 2,451,114 2,451,114 - 32,372,215 32,372,215 -
$ 914,832 $ 2,731,911 $ 1,817,079 $ (212,576,457) $ 45,050,140 $ 257,626,597 136

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, 2024
General Obligation Debt
Budget Actual
Variance with
Final Budget
Revenues:

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

Debt service:

Principal retirement 640,646 640,647 (1)
Interest and fiscal charges 3,187 3,187 -
Total expenditures 643,833 643,834 (1)
Deficiency of revenues under expenditures (643,833) (643,834) (1) Other financing sources:

Transfers in 702,500 702,500 -
Total other financing sources 702,500 702,500 -
Net change in fund balance 58,667 58,666 (1)
Fund balance - beginning - - -
Fund balance - ending $ 58,667 $ 58,666 $ (1)
137
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.
138

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, 2024
Capital Outlay Park Improvement Fund
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
Revenues:

Taxes $ (5,850,000) $ 7,553,270 $ 13,403,270 $ - $ - $ - Intergovernmental (4,187,056) 4,394,533 8,581,589 - - - Charges for services (68,300) 48,235 116,535 - - -
Fines, forfeitures, and
assessments 310,000 281,845 (28,155) (1,612,515) 2,828,776 4,441,291 Interest income (loss) 210,000 5,981,244 5,771,244 (50,000) 579,489 629,489 Other income 720,410 19,580 (700,830) - - -
Total revenues (8,864,946) 18,278,707 27,143,653 (1,662,515) 3,408,265 5,070,780 Expenditures:

Current:

General government - - - - - -
Public works 34,868 - 34,868 - - -
Non-departmental 5,219,681 30,299 5,189,382 - - -
Capital outlay:

Transportation:

Traffic control - - - - - -
Streets 10,388,183 4,253,805 6,134,378 - - -
Bridges 2,675,265 310,370 2,364,895 - - -
Streets / Freeways 70,070,090 10,628,210 59,441,880 - - - Public facilities:

Buildings 53,162,789 7,399,250 45,763,539 - - -
Parks and landscaping 16,387,833 3,959,180 12,428,653 2,667,592 244,536 2,423,056 Land acquisition 800,000 - 800,000 1,117,397 253,495 863,902 Other improvements 127,278,874 14,234,557 113,044,317 35,825 21,437 14,388 Equipment:

Computers 33,291,897 4,972,901 28,318,996 - - -
Non-automotive 1,067,934 79,991 987,943 - - -
Total expenditures 320,377,414 45,868,563 274,508,851 3,820,814 519,468 3,301,346 Excess (deficiency) of revenues
over (under) expenditures (329,242,360) (27,589,856) 301,652,504 (5,483,329) 2,888,797 8,372,126 Other financing sources (uses):

Transfers in 33,942,910 29,892,910 (4,050,000) - - -
Transfers out (5,797,000) - 5,797,000 - - -
Total other financing
sources (uses) 28,145,910 29,892,910 1,747,000 - - -
Net change in fund balances (301,096,450) 2,303,054 303,399,504 (5,483,329) 2,888,797 8,372,126 Fund balances - beginning 129,183,555 129,183,555 - 7,909,868 7,909,868 - Fund balances - ending $ (171,912,895) $ 131,486,609 $ 303,399,504 $ 2,426,539 $ 10,798,665 $ 8,372,126 139
Transportation Development Totals
Budget Actual
Variance with
Final Budget Budget Actual
Variance with
Final Budget
$ - $ - $ - $ (5,850,000) $ 7,553,270 $ 13,403,270
- - - (4,187,056) 4,394,533 8,581,589
(75,000) 7,776 82,776 (143,300) 56,011 199,311
(13,162,500) 17,316,281 30,478,781 (14,465,015) 20,426,902 34,891,917 (255,575) 2,951,254 3,206,829 (95,575) 9,511,987 9,607,562 - 5,651 5,651 720,410 25,231 (695,179)
(13,493,075) 20,280,962 33,774,037 (24,020,536) 41,967,934 65,988,470 162,920 143,435 19,485 162,920 143,435 19,485
571,484 483,291 88,193 606,352 483,291 123,061
18,156 - 18,156 5,237,837 30,299 5,207,538
630,323 - 630,323 630,323 - 630,323
14,911,727 731,335 14,180,392 25,299,910 4,985,140 20,314,770 - - - 2,675,265 310,370 2,364,895
40,982,462 7,601,566 33,380,896 111,052,552 18,229,776 92,822,776 - - - 53,162,789 7,399,250 45,763,539
- - - 19,055,425 4,203,716 14,851,709
- - - 1,917,397 253,495 1,663,902
- - - 127,314,699 14,255,994 113,058,705
- - - 33,291,897 4,972,901 28,318,996
- - - 1,067,934 79,991 987,943
57,277,072 8,959,627 48,317,445 381,475,300 55,347,658 326,127,642 (70,770,147) 11,321,335 82,091,482 (405,495,836) (13,379,724) 392,116,112 - - - 33,942,910 29,892,910 (4,050,000)
(14,600,000) - 14,600,000 (20,397,000) - 20,397,000
(14,600,000) - 14,600,000 13,545,910 29,892,910 16,347,000 (85,370,147) 11,321,335 96,691,482 (391,949,926) 16,513,186 408,463,112 58,665,040 58,665,040 - 195,758,463 195,758,463 -
$ (26,705,107) $69,986,375 $ 96,691,482 $ (196,191,463) $212,271,649 $ 408,463,112 140

CITY OF BAKERSFIELD
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Special Revenue Funds
Rental and
Downpayment
Assistance
State (TDA)
Transportation
Assets:

Cash and investments $ 75,047 $ 124,027
Accounts receivable, net 3,817,533 14,635
Interest receivable 231 -
Due from other governmental agencies - 74,340
Total assets $ 3,892,811 $ 213,002
Liabilities, Deferred Inflows of Resources, and Fund Balances:

Liabilities:

Accounts payable $ - $ 68,069
Advances from grantors and third parties - 144,933
Total liabilities - 213,002
Deferred Inflows of Resources:

Deferred revenue 3,817,533 -
Fund Balances:

Restricted 75,278 -
Total liabilities, deferred inflows
of resources, and fund balances $ 3,892,811 $ 213,002
141
Special
Revenue Funds
Debt
Service Fund
State Safety
General
Obligation Debt
Total
Non-Major
Governmental
Funds
$ 3,020,855 $ 143,000 $ 3,362,929
140,009 - 3,972,177
46,197 - 46,428
- - 74,340
$ 3,207,061 $ 143,000 $ 7,455,874
$ 178,749 $ 19,292 $ 266,110
- - 144,933
178,749 19,292 411,043
- - 3,817,533
3,028,312 123,708 3,227,298
$ 3,207,061 $ 143,000 $ 7,455,874
142

CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2024
Special Revenue Funds Special Revenue Funds
Rental and
Downpayment
Assistance
State (TDA)
Transportation State Safety
Revenues:

Licenses and permits $ - $ - $ 373,810
Intergovernmental - 643,130 1,177,544
Charges for services - - 1,740,436
Fines, forfeitures and assessments - - 1,431,344
Interest income (loss) 604 (2,086) 180,639
Loan payments 6,667 - -
Other income - - -
Total revenues 7,271 641,044 4,903,773
Expenditures
Current:

Public safety - Police - - 1,650,140
Public safety - Fire - - 2,003,116
Public works - 509,339 -
Recreation and parks - 16,071 -
Development services - - -
Capital outlay - 115,634 1
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures - 641,044 3,653,257
Excess (deficiency) of revenues
over (under) expenditures 7,271 - 1,250,516
Other financing sources (uses):

Transfers in - - -
Transfers out - - (1,287,200)
Total other financing sources (uses) - - (1,287,200)
Net change in fund balances 7,271 - (36,684)
Fund balances - beginning 68,007 - 3,064,996
Fund balances - Beginning, as restated 75,278 - 3,028,312 Fund balances - ending $ 75,278 $ - $ 3,028,312
143
Debt
Service Fund
General Obligation
Debt
Total
Non-Major
Governmental
Funds
$ - $ 373,810
- 1,820,674
- 1,740,436
- 1,431,344
- 179,157
- 6,667
65,041 65,041
65,041 5,617,129
- 1,650,140
- 2,003,116
- 509,339
- 16,071
(1) (1)
- 115,635
640,647 640,647
3,187 3,187
643,833 4,938,134
(578,792) 678,995
702,500 702,500
- (1,287,200)
702,500 (584,700)
123,708 94,295
- 3,133,003
123,708 3,227,298
$ 123,708 $ 3,227,298
144
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.
145

CITY OF BAKERSFIELD
Combining Statement of Net Position
All Internal Service Funds
June 30, 2024
Self-
Insurance
Equipment
Management Total
Assets:

Current assets:

Cash and investments $ 24,539,920 $ 61,305,413 $ 85,845,333 Accounts receivable, net 1,324 345 1,669
Interest receivable 171,401 578,180 749,581
Due from other governmental agencies 2,907 - 2,907
Prepayments and inventories 106,858 1,466,308 1,573,166 Total current assets 24,822,410 63,350,246 88,172,656
Noncurrent assets:

Capital assets:

Depreciable buildings, property, equipment and infrastructure, net - 72,387,967 72,387,967 Subscription Asset - net of amortization - 1,972,218 1,972,218 Total noncurrent assets - 74,360,185 74,360,185
Total assets 24,822,410 137,710,431 162,532,841
Deferred Outflows of Resources:

Deferred pensions 310,465 2,814,238 3,124,703
Deferred other post-employment benefits 36,001 348,020 384,021 Total deferred outflows of resources 346,466 3,162,258 3,508,724 Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 1,465,314 3,650,612 5,115,926 Liability Claims payable 4,927,000 - 4,927,000
Workers' compensation claims 10,733,000 - 10,733,000
Compensated absences payable - 198,242 198,242
Subscription liability - 568,564 568,564
Total current liabilities 17,125,314 4,417,418 21,542,732 Noncurrent liabilities:

Liability Claims Payable 11,658,000 - 11,658,000
Workers' compensation claims 60,737,000 - 60,737,000
Compensated absences payable 99,767 427,373 527,140
Subscription liability - 405,675 405,675
Net pension liability 768,218 11,033,075 11,801,293
Net other post-employment benefits liability 41,368 399,893 441,261 Total noncurrent liabilities 73,304,353 12,266,016 85,570,369 Total liabilities 90,429,667 16,683,434 107,113,101
Deferred Inflows of Resources:

Deferred pensions (19,016) 188,358 169,342
Deferred other post-employment benefits 19,408 187,610 207,018 Total deferred inflows of resources 392 375,968 376,360 Net Position:

Net investment in capital assets - 72,387,967 72,387,967 Unrestricted (65,261,183) 51,425,320 (13,835,863)
Total net position (deficit) (65,261,183) 123,813,287 58,552,104 Total net position $ (65,261,183) $ 123,813,287 $ 58,552,104 146

CITY OF BAKERSFIELD
Combining Statement of Activities and Changes in Net Position All Internal Service Funds
For the Fiscal Year Ended June 30, 2024
Self-
Insurance
Equipment
Management Total
Operating revenues:

Charges for services $ 30,330,428 $ 45,735,024 $ 76,065,452 Cost recoveries 910,110 39,113 949,223
Miscellaneous 16,797 27,593 44,390
Total operating revenues 31,257,335 45,801,730 77,059,065 Operating expenses:

General and administrative 25,960,832 30,061,028 56,021,860 Workers' compensation payments 5,107,730 - 5,107,730
Claims paid 6,048,547 - 6,048,547
Depreciation and amortization - 12,469,610 12,469,610
Compensated absences 10,773 33,865 44,638
Total operating expenses 37,127,882 42,564,503 79,692,385 Operating income (loss) (5,870,547) 3,237,227 (2,633,320) Nonoperating revenues (expenses):

Interest income (loss) 688,523 2,322,505 3,011,028
Gain/(loss) on sale of capital assets - 578,371 578,371 Income (loss) before transfers
and capital contributions (5,182,024) 6,138,103 956,079 Capital contributions - 1,300,789 1,300,789
Transfers in - 5,291,064 5,291,064
Transfers out (253,319) - (253,319)
Change in net position (5,435,343) 12,729,956 7,294,613 Net position (deficit) -
Beginning of year (59,825,840) 110,814,747 50,988,907
Error correction - 268,584 268,584
Net Position - beginning of the year, as restated (59,825,840) 111,083,331 51,257,491 Net position (deficit) - End of year $ (65,261,183) $ 123,813,287 $ 58,552,104 147

CITY OF BAKERSFIELD
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Self-
Insurance
Equipment
Management Total
Cash from operating activities:

Cash received from:

Customers $ 30,350,371 $ 45,755,452 $ 76,105,823
Prior year reimbursements and cost recoveries 910,110 39,113 949,223 Cash paid to:

Suppliers (30,179,359) (22,253,946) (52,433,305)
Employees 4,025,997 (6,285,984) (2,259,987)
Net cash provided (used) by operating activities 5,107,119 17,254,635 22,361,754 Cash from noncapital financing activities
Cash transfered from other funds - 5,291,064 5,291,064
Cash transfers to other funds (253,319) 1,300,789 1,047,470 Net cash provided (used) by noncapital financing activities (253,319) 6,591,853 6,338,534 Cash from capital and related financing activities:

Acquisition and construction of capital assets - (24,462,761) (24,462,761) SBITA payments - (992,472) (992,472)
Proceeds from sale of capital assets - 578,371 578,371
Net cash provided (used) by capital and related financing activities - (24,876,862) (24,876,862) Cash from investing activities:

Interest received 459,119 1,643,662 2,102,781
Net increase (decrease) in the fair value of investments 169,118 521,690 690,808 Net cash provided (used) by investing activities 628,237 2,165,352 2,793,589 Net increase (decrease) in cash and investments 5,482,037 1,134,978 6,617,015 Cash and investments - Beginning of year 19,057,884 60,170,434 79,228,318 Cash and investments - End of year $ 24,539,921 $ 61,305,412 $ 85,845,333 148

CITY OF BAKERSFIELD
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Self-
Insurance
Equipment
Management Total
Reconciliation of Operating income (Loss) to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) $ (5,870,547) $ 3,237,227 $ (2,633,320) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense - 12,469,610 12,469,610
(Increase) decrease in accounts receivable 3,146 (345) 2,801 (Increase) decrease in inventories - (89,495) (89,495)
(Increase) decrease in prepaid items 17,568 - 17,568
(Increase) decrease in deferred outflows of resources for pensions & OPEB 17,568 - 17,568 Increase (decrease) in accounts payable 1,114,355 1,644,656 2,759,011 Other accrued liabilities 9,826,000 - 9,826,000
Increase (decrease) in compensated absences 10,773 32,399 43,172 Increase (decrease) in net pension liability 9,355 77,854 87,209 19,259 213,182 232,441
Increase (decrease) in net other post-employment benefits liability (22,743) (334,921) (357,664) Increase (decrease) in deferred inflows of resources for pension & OPEB (12,410) (112,451) (124,861) Net cash provided (used) by operating activities: $ 5,112,324 $ 17,137,716 $ 22,250,040 149

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
Special
Deposits
Improvement
Districts
Total Custodial
Funds
Assets:

Current assets:

Cash and investments $ 28,239,134 $ 9,160,457 $ 37,399,591 Accounts receivable, net (9,130) 448 (8,682)
Interest receivable 10,599 64,833 75,432
Total current assets 28,240,603 9,225,738 37,466,341
Total assets 28,240,603 9,225,738 37,466,341
Liabilities:

Payables:

Deposits 28,240,602 6,312,976 34,553,578
Bonds - 2,717,591 2,717,591
Accrued bond interest - 195,172 195,172
Total liabilities 28,240,602 9,225,739 37,466,341
Net Assets:

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

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2024
Redevelopment
Successor Agency -
Trust
Planning Habitat
Trust
Affordable
Housing Trust
Total
Private Purpose
Trust Funds
Assets:

Current assets:

Cash $ 3,524,226 $ 16,827,530 $ 15,811,225 $ 36,162,981 Interest receivable 22,910 184,534 101,472 308,916
Total current assets 3,547,136 17,012,064 15,912,697 36,471,897 Noncurrent assets:

Land held for resale 60,895 - - 60,895
Total noncurrent assets 60,895 - - 60,895
Total assets 3,608,031 17,012,064 15,912,697 36,532,792 Liabilities:

Payables:

Accounts - 14,913 2,056,205 2,071,118
Advances from grantors and third parties 2,818,670 - - 2,818,670 Bonds 1,530,000 - - 1,530,000
Notes 7,853,149 - - 7,853,149
Total liabilities 12,201,819 14,913 2,056,205 14,272,937 Net Position:

Held in trust for:

Individuals, organizations, and other
governments (8,593,788) 16,997,151 13,856,491 22,259,854 Total Net Position $ (8,593,788)$ 16,997,151 $ 13,856,491 $ 22,259,854 151

CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
June 30, 2024
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Assets:

Cash $ 3,325,071 $ 247,227 $ 3,572,298
Interest receivable - 2,985 2,985
Investments
Domestic equities 43,010,139 - 43,010,139
Fixed income 51,749,485 - 51,749,485
Total investments 94,759,624 - 94,759,624
Total assets 98,084,695 250,212 98,334,907
Net Position:

Held in trust for -
Other post-employment benefits 98,084,695 250,212 98,334,907 Total Net Position $ 98,084,695 $ 250,212 $ 98,334,907
152

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Fiscal Year Ended June 30, 2024
Special
Deposits
Improvement
Districts
Total Custodial
Funds
Additions:

Assessment District Contributions $ - $ 2,742,298 $ 2,742,298 Special Deposit Contribution 19,961,455 - 19,961,455
Other Contributions - 357,924 357,924
Other income - 420,179 420,179
Interest income (loss) 131,609 328,525 460,134
Total additions 20,093,064 3,848,926 23,941,990
Deductions:

Obligation retirement - 3,477,591 3,477,591
Non departmental - 29,080 29,080
Other Distributions 20,093,064 25,955 20,119,019
Bond - Interest - 316,300 316,300
Total deductions 20,093,064 3,848,926 (23,941,990)
Change in net position - - -
Net position - beginning of year - - -
Net position - end of year $ - $ - $ -
153

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Fiscal Year Ended June 30, 2024
Redevelopment
Successor Agency -
Trust
Planning Habitat
Trust
Affordable
Housing Trust
Total
Private Purpose
Trust Funds
Additions:

Developer fees $ - $ 171,279 $ - $ 171,279
Successor agency property tax deposits 1,417,023 - - 1,417,023 Intergovernmental - - - -
Charges for services - - - -
Other Contributions - - 7,431,019 7,431,019
Other income 237,779 - - 237,779
Interest income (loss) - 434,696 354,334 789,030
Total additions 1,654,802 605,975 7,785,353 10,046,130
Deductions:

Purchase of uninhabited land - 556,775 - 556,775
Other Distributions - - 3,413,339 3,413,339
Obligation retirement 434,261 - - 434,261
Total deductions 434,261 556,775 3,413,339 4,404,375
Change in net position 1,220,541 49,200 4,372,014 5,641,755 Net position - beginning of year (9,566,187) 16,947,951 9,484,477 16,866,241 Net position - end of year $ (8,345,646)$ 16,997,151 $ 13,856,491 $ 22,507,996 154

CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position Pension and Other Employee Benefit Trust Funds
For the Fiscal Year Ended June 30, 2024
OPEB
Irrevocable Trust
Fire Relief and
Pension Trust
Total
Pension and Other
Employee Benefit
Trust Funds
Additions:

Contributions to pooled investments $ 4,942,273 $ - $ 4,942,273 Interest income 6,943,877 11,846 6,955,723
Total additions 11,886,150 11,846 11,897,996
Deductions:

Benefits 3,700,281 95,664 3,795,945
Administrative expenses 242,657 - 242,657
Total deductions 3,942,938 95,664 4,038,602
Change in net position 7,943,212 (83,818) 7,859,394
Beginning of year 90,141,483 334,030 90,475,513
End of year $ 98,084,695 $ 250,212 $ 98,334,907
155

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

REDEVELOPMENT SUCCESSOR AGENCY
Tax Allocation Bonds:
$2,090,000 Tax Allocation Bond to be used for construction of public improvements for new developments on 18th and 19th Streets, and improvements to the Mill Creek Linear Park. The funds were dispersed in July 2009. The interest rate is 7.5%, with payments commencing August 2010 through August 2029. $ 965,000 $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. 565,000
Total Bonds $ 1,530,000
Loans/Contracts:
$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%. 387,000 $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%. 1,175,000
$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%. 5,924,149 Total Loans/Contracts Payable $ 7,486,149
Total Redevelopment Successor Agency $ 9,016,149
156

CITY OF BAKERSFIELD
Long-term Debt Recorded in Private Purpose Trust Fund
Annual requirements to amortize the principal and interest on long-term debt of Redevelopment Successor Agency at June 30, 2024 is as follows:

Redevelopment Successor Agency (Private Purpose Trust Fund) Year ending Principal Interest
Bonds Loans/Contracts Total Bonds Loans/Contracts Total 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 71,300 186,097 257,397
2028 260,000 698,260 958,260 52,594 153,892 206,486
2029 280,000 388,993 668,993 32,594 133,341 165,935
2030-2034 300,000 2,134,130 2,434,130 11,112 474,603 485,715 2035-2039 - 1,958,898 1,958,898 - 124,175 124,175
Totals $ 1,530,000 $ 7,486,149 $ 9,016,149 $ 361,869 $ 1,545,788 $ 1,907,657 157
Statistical Section
City of Bakersfield
Statistical Section
For the fiscal year ended June 30, 2024
The statistical section of the City of Bakersfield's (City) annual comprehensive financial report presents detailed information as a context for understanding what the information presented in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. Where less than 10 years of data is presented, the information was not available.

Contents Pages
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance measures have changed over time. 159 - 164 Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales tax revenues. 169 - 178
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.
179 - 185
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
186 - 188
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 193 - 192
158

CITY OF BAKERSFIELD
Net Position by Component (1)
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017(2) 2018(2)
Governmental Activities:

Net investment in capital assets $ 1,285,115,859 $ 1,304,906,456 $ 1,305,414,611 $ 1,301,334,674 Restricted for:

Capital improvements 22,112,200 21,988,624 20,626,443 20,759,775 Unrestricted (70,066,811) (86,460,007) (108,783,761) (200,714,582) Total governmental activities
net position: 1,237,161,248 1,240,435,073 1,217,257,293 1,121,379,867 % change from prior year -22.4% 0.3% -1.9% -8.5%
Business-Type Activities:

Net investment in capital assets 648,359,633 665,588,574 670,274,189 700,725,335 Restricted for:

Capital improvements 20,201,556 20,201,947 20,200,000 20,200,000 Unrestricted 78,904,795 79,243,784 85,239,027 107,755,323 Total business-type activities
net position 747,465,984 765,034,305 775,713,216 828,680,658 % change from prior year -3.9% 2.3% 1.4% 6%
Primary Government:

Net investment in capital assets 1,933,475,502 1,970,495,030 1,976,138,800 2,002,060,009 Restricted for:

Capital improvements 42,313,756 42,190,571 40,826,443 40,959,775 Unrestricted 8,837,984 (7,216,223) (23,544,734) (92,959,259) Total primary government
net position $ 1,984,627,242 $ 2,005,469,378 $ 1,993,420,509 $ 1,950,060,525 Total primary government
% change from prior year -15.4% 1.0% -0.6% -2.2%
Notes:
(1) This schedule reports using the accrual basis of accounting. (2) There was a prior period adjustment in Governmental and/or Business-Type Activities for the fiscal year. Numbers have been changed to reflect the restatement.
(3) The current year increase in Governmental Activities net position is primarily due to the Public Safety and Vital Services (PSVS) district tax which is a new source of revenue that was approved by residents in November 2018. 159
Fiscal Year
2019(2) 2020(2) 2021(2) 2022(2)(3) 2023(2) 2024(2)
$ 1,316,112,932 $ 1,347,391,281 $ 1,353,461,742 $ 1,369,954,461 $ 1,395,502,719 $ 1,429,436,704 18,975,747 15,078,957 15,276,476 21,536,491 21,357,879 23,409,163 (193,801,808) (190,673,618) (59,276,481) (39,763,272) 3,081,026 9,583,120 1,141,286,871 1,171,796,620 1,309,461,737 1,351,727,680 1,419,941,624 1,462,428,987 2% 3 12 3 5.0% 3.0%
720,818,075 735,284,165 746,197,186 754,164,100 756,449,727 759,347,931 20,200,000 20,200,000 20,200,000 20,200,000 20,200,000 20,200,000 107,638,278 105,004,414 113,278,598 106,968,986 120,952,107 147,076,898 848,656,353 860,488,579 879,675,784 881,333,086 897,601,834 926,624,829 2 1 2 0.2% 1.8% 3.2%
2,036,931,007 2,082,675,446 2,099,658,928 2,124,118,561 2,151,952,446 2,188,784,635 39,175,747 35,278,957 35,476,476 41,736,491 41,557,879 43,609,163 (86,163,530) (85,669,204) 54,002,117 67,205,714 124,033,133 156,660,018 $ 1,989,943,224 $ 2,032,285,199 $ 2,189,137,521 $ 2,233,060,766 $ 2,317,543,458 $ 2,389,053,816 2% 2 8 2 3.8% 3.1%
160

CITY OF BAKERSFIELD
Change in Net Position (1)
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018
Expenses
Governmental activities:

General government $ 21,956,276 $ 24,203,337 $ 26,395,470 $ 29,731,416 Public safety:

Police 82,573,675 87,314,992 95,723,028 105,006,154
Fire 35,577,067 37,257,146 41,364,912 44,560,720
Public works 158,958,537 176,573,017 171,911,928 145,529,290 Recreation & parks 22,743,488 24,993,400 26,888,569 22,613,830 Development services 9,895,523 10,018,548 12,159,620 8,533,656 Economic/Community development (2) - - - -
Interest on long-term debt 164,046 39,729 33,429 25,060 Total governmental activities expenses 331,868,612 360,400,169 374,476,956 356,000,126 Business-type activities:

Wastewater treatment 41,602,539 38,038,376 41,008,233 42,103,648 Refuse collection 42,860,924 44,067,358 46,300,746 47,971,215 River & agricultural water 4,751,158 4,395,517 4,304,663 4,198,037 Domestic water 25,455,862 25,756,437 27,066,771 29,205,225 General aviation 527,279 480,754 812,527 671,124
Offstreet parking 163,840 112,986 226,999 233,746
Total business-type activities expenses 115,361,602 112,851,428 119,719,939 124,382,995 Total primary government expenses 447,230,214 473,251,597 494,196,895 480,383,121 Program Revenues
Governmental activities:

Charges for services:

General government 3,051,375 6,178,924 4,609,597 5,618,886 Public safety:

Police 2,737,294 3,138,617 4,797,619 2,989,023
Fire 5,784,964 6,375,758 6,903,928 7,242,490
Public works 20,958,923 18,625,200 17,116,439 17,159,857 Recreation & parks 14,336,209 15,665,544 16,103,058 16,481,750 Development services 5,620,567 6,076,072 5,719,860 5,909,456 Operating grants and contributions 12,963,571 11,217,162 12,640,678 9,165,593 Capital grants and contributions 101,313,136 120,303,934 100,956,230 85,533,310 Total governmental activities
program revenues $ 166,766,039 $ 187,581,211 $ 168,847,409 $ 150,100,365 Notes:
(1) This schedule reports using the accrual basis of accounting. (2) Economic/Community Development became a part of Development Services. 161
Fiscal Year
2019 2020 2021 2022 2023 2024
$ 31,112,425 $ 40,385,072 $ 59,796,329 $ 42,511,573 $ 36,776,455 $ 47,233,931 106,340,979 120,286,345 122,380,189 129,728,794 157,182,433 185,288,008 46,537,182 49,284,742 50,309,878 45,764,559 58,352,144 67,982,220 126,435,754 170,924,424 145,038,811 150,281,233 109,899,852 101,644,764 20,685,570 26,172,685 25,111,166 26,118,994 39,781,689 41,188,369 8,221,265 13,409,023 10,230,315 6,956,455 14,366,698 18,469,442 - - 8,793,206 50,040,874 31,828,294 23,074,084
17,358 7,779 (5,101) 17,809 (3,224) 3,187
339,350,533 420,470,070 421,654,793 451,420,291 448,184,341 484,884,005 43,491,976 41,863,203 41,038,194 41,498,952 44,261,402 47,639,616 52,077,032 56,297,122 50,804,453 58,507,299 65,668,875 72,388,867 4,469,652 5,110,204 5,098,760 7,096,442 7,322,078 6,580,440 26,859,329 30,900,781 35,476,633 38,097,963 39,547,695 42,907,079 480,368 633,219 548,758 429,865 488,137 582,783
290,799 288,532 309,221 341,910 329,928 322,398
127,669,156 135,093,061 133,276,019 145,972,431 157,618,115 170,421,183 467,019,689 555,563,131 554,930,812 597,392,722 605,802,456 655,305,188 5,476,706 4,474,539 16,695,951 8,343,684 10,265,564 7,151,429 3,719,138 3,152,452 3,045,346 4,098,823 3,769,689 3,491,353 7,615,334 8,116,341 8,503,888 8,988,190 9,825,370 10,584,125 16,970,725 17,969,450 22,364,612 18,860,054 15,584,199 19,848,254 17,354,482 14,768,875 12,544,657 20,184,327 20,303,609 22,927,301 6,335,650 6,589,380 7,122,586 7,327,904 7,490,244 7,925,583 11,411,248 17,270,805 104,733,729 43,350,105 46,450,288 34,428,918 78,708,716 109,448,244 92,038,360 90,119,811 60,046,585 51,004,786 $ 147,591,999 $ 181,790,086 $ 267,049,129 $ 201,272,898 $ 173,735,548 $ 157,361,749 162

CITY OF BAKERSFIELD
Change in Net Position (1) continued
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018
Business-type activities:

Charges for services:

Wastewater treatment $ 31,437,669 $ 32,809,778 $ 33,037,996 $ 34,036,372 Refuse collection 43,447,351 45,865,520 49,502,386 51,119,909 River & agricultural water 3,640,671 2,863,750 6,712,871 7,039,283 Domestic water 22,478,013 20,275,368 23,232,757 26,491,151 General aviation 315,351 327,491 325,116 347,315
Offstreet parking 78,807 134,404 146,250 114,261
Operating grants and contributions 8,749,741 7,283,587 7,173,227 9,047,127 Capital grants and contributions 7,402,621 16,428,109 9,741,991 4,913,540 Total business-type activities
program revenues 117,550,224 125,988,007 129,872,594 133,108,958 Total primary government
program revenues 284,316,263 313,569,218 298,720,003 283,209,323 Net (Expenses) Revenues:

Governmental activities (165,102,573) (172,818,958) (205,629,547) (205,899,761) Business-type activities 2,188,622 13,136,579 10,152,655 8,725,963 Total primary government
Net (Expenses) Revenues (162,913,951) (159,682,379) (195,476,892) (197,173,798) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 71,382,809 74,342,784 77,680,416 79,774,412 Sales and use taxes 70,366,255 70,786,792 65,348,910 72,322,068 Other taxes 1,177,810 1,176,713 1,212,122 1,308,842
Intergovernmental, unrestricted 150,529 149,089 169,836 201,875 Unrestricted grants and contributions 25,497,714 25,381,927 24,827,775 25,140,642 Investment earnings (loss) 487,532 2,295,536 283,544 1,295,749 Miscellaneous 2,173,532 1,613,591 1,707,873 1,754,210
Gain (loss) on sale of property (8,511,599) 826,990 273,364 248,579 Transfers 3,584,925 1,352,562 152,000 2,032,654
Total Governmental Activities 166,309,507 177,925,984 171,655,840 184,079,031 Business-type activities:

Investment earnings 1,968,113 1,728,927 1,112,586 1,878,973 Gain (loss) on sale of property 390,791 17,545 15,670 20,370 Transfers (3,584,925) (1,352,562) (152,000) (2,032,654) Total business-type activities (1,226,021) 393,910 976,256 (133,311) Total primary government 165,083,486 178,319,894 172,632,096 183,945,720 Extraordinary gain (loss) - - - 54,231,181
Change in Net Position:

Governmental activities 1,206,934 5,107,026 (33,973,707) (21,820,730) Business-type activities 962,601 13,530,489 11,128,911 8,592,652 Total primary government $ 2,169,535 $ 18,637,515 $ (22,844,796) $ (13,228,078) 163
Fiscal Year
2019 2020 2021 2022 2023 2024
$ 33,916,086 $ 34,356,259 $ 35,011,460 $ 34,009,383 $ 36,560,842 $ 39,525,137 54,158,105 56,834,796 60,544,720 65,874,392 76,907,921 85,954,989 9,643,555 7,203,989 3,886,694 6,432,162 9,931,949 14,889,184 27,744,037 28,624,932 30,211,227 30,921,823 30,282,579 33,101,726 318,401 301,933 333,337 314,360 592,720 403,679
160,090 153,884 100,941 116,313 146,342 196,013
8,406,992 7,587,747 12,105,862 9,583,100 6,577,750 8,564,945 11,977,630 10,120,482 13,829,014 11,757,533 8,694,370 11,643,660 146,324,896 145,184,022 156,023,255 159,009,066 169,694,473 194,279,333 293,916,895 326,974,108 423,072,384 360,281,964 343,430,021 351,641,082 (191,758,534) (238,679,984) (154,605,664) (250,147,393) (274,448,793) (327,522,256) 18,655,740 10,090,961 22,747,236 13,036,635 12,076,358 23,858,150 (173,102,794) (228,589,023) (131,858,428) (237,110,758) (262,372,435) (303,664,106) 83,543,561 85,558,776 92,614,863 96,169,420 103,659,840 111,318,789 94,622,228 148,259,133 180,298,616 201,046,660 199,751,271 203,937,875 1,524,996 1,341,620 1,722,078 2,053,178 1,496,831 1,512,943 185,685 308,043 288,061 459,088 419,097 504,428
25,237,610 24,763,948 25,713,508 28,518,519 30,203,358 31,012,748 2,708,894 1,707,054 53,432 (5,253,433) 7,049,209 24,197,939 1,474,916 2,670,587 3,642,011 3,627,334 2,705,121 3,192,150 101,086 4,060 10,682 9,361 2,164 4,930
4,058,397 2,064,005 (11,840,913) (3,720,254) (2,771,093) (3,001,734) 213,457,373 266,677,226 292,502,338 322,909,873 342,515,798 372,680,068 5,045,825 3,671,948 649,913 (1,924,718) 3,997,545 9,550,550 25,454 133,322 35,457 (9,328) 50,565 43,580
(4,058,397) (2,064,005) (4,073,335) (2,924,103) 144,280 (4,429,285) 1,012,882 1,741,265 (3,387,965) (4,858,149) 4,192,390 5,164,845 214,470,255 268,418,491 289,114,373 318,051,724 346,708,188 377,844,913 - - - - - -
21,698,839 27,997,242 137,896,674 72,762,480 68,067,005 45,157,812 19,668,622 11,832,226 19,359,271 8,178,486 16,268,748 29,022,995 $ 41,367,461 $ 39,829,468 $ 157,255,945 $ 80,940,966 $ 84,335,753 $ 74,180,807 164

CITY OF BAKERSFIELD
Fund Balances of Governmental Funds
Last Ten Fiscal Years (1)
2015 2016
Fiscal Year
2017 2018
General Fund
Nonspendable $ 1,000 $ 1,000 $ 1,025 $ 1,025
Restricted - - - -
Committed 33,140,376 28,995,204 32,559,429 29,505,463
Assigned 7,254,726 4,042,766 3,567,936 2,914,844
Unassigned 383,987 8,783,314 3,115,798 7,077,156
Subtotal general fund 40,780,089 41,822,284 39,244,188 39,498,488 All Other Governmental Funds
Nonspendable 944,356 44,508 7,675,326 1,212,183
Restricted 22,112,200 21,988,624 20,626,443 20,759,775
Committed 80,565,806 64,661,547 67,725,705 68,066,549
Assigned 51,017,356 51,026,114 37,747,940 46,316,269
Unassigned - - - -
Subtotal all other governmental funds 154,639,718 137,720,793 133,775,414 136,354,776 Total governmental fund balance $ 195,419,807 $ 179,543,077 $ 173,019,602 $ 175,853,264 Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.

Source: City Finance Department
165
2019 2020 2021
Fiscal Year
2022 2023 2024
$ 51,479 $ 44,314 $ 38,724 $ 98,463 $ 99,455 $ 100,147
- - - - - -
27,488,388 49,811,144 66,059,815 86,443,908 98,091,483 90,130,909 22,403,228 18,869,241 30,544,224 34,420,249 29,000,457 20,022,472 4,689,839 - 29,426,960 7,478,680 25,106,773 48,772,075
54,632,934 68,724,699 126,069,723 128,441,300 152,298,168 159,025,603 942,965 968,679 779,865 779,865 779,865 306,847
18,975,747 15,078,956 68,537,913 26,837,705 25,521,894 28,264,078 83,018,904 141,307,728 89,790,696 97,922,671 99,054,504 120,619,304 28,958,138 56,246,321 71,912,128 91,762,304 103,215,729 103,773,099 - - - (320,921) (86,759) -
131,895,754 213,601,684 231,020,602 216,981,624 228,485,233 252,963,328 $ 186,528,688 $ 282,326,383 $ 357,090,325 $ 345,422,924 $ 380,783,401 $ 411,988,931 166

CITY OF BAKERSFIELD
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019
Revenues:

Taxes $ 168,047,259 $ 171,344,057 $ 168,758,632 $ 178,228,594 $ 204,629,052 Licenses and permits 3,297,396 3,216,872 3,321,133 3,268,134 3,483,935 Intergovernmental 113,170,797 129,091,459 111,232,933 93,198,441 88,214,967 Charges for services 29,643,496 31,225,288 31,530,433 34,404,377 35,435,981 Fines, forfeitures &
assessments 21,984,077 20,337,463 21,325,888 18,887,330 20,058,536 Interest income (loss) 1,470,902 2,823,200 591,514 1,791,980 4,373,028 Contributions and donations 10,390 153,607 294,156 259,932 372,462 Miscellaneous 9,100,338 6,377,099 3,789,687 4,342,074 3,294,244 Total Revenues 346,724,655 364,569,045 340,844,376 334,380,862 359,862,205 Expenditures:

General government 19,254,079 21,404,144 21,483,266 21,883,948 22,849,651 Police 83,484,871 85,469,207 85,303,925 89,209,119 97,029,401 Fire 36,224,449 36,956,928 37,694,398 39,299,505 40,616,758 Public works 26,828,323 26,936,064 25,826,378 25,798,786 27,310,375 Recreation and parks 18,833,884 18,145,518 18,881,782 20,215,698 20,358,886 Development services 12,231,555 12,068,546 11,861,982 9,419,106 10,415,836 Economic/Community
development(1) - - - - -
Non-departmental 12,736,007 13,348,200 10,724,880 11,699,947 12,680,999 Capital outlay 134,748,520 164,583,100 134,231,542 113,952,709 115,089,647 Debt service:

Principal 454,964 489,828 503,828 502,352 635,085
Interest and fiscal charges 252,300 57,115 65,870 59,324 51,545 Total Expenditures 345,048,952 379,458,650 346,577,851 332,040,494 347,038,183 Excess (deficiency) of revenues over
(under) expenditures 1,675,703 (14,889,605) (5,733,475) 2,340,368 12,824,022 Other financing sources (uses):

Notes/certificate proceeds - - - - -
Transfers in 15,963,966 10,049,932 7,686,698 7,691,676 13,125,130 Transfers out (17,860,400) (10,158,904) (7,686,698) (7,956,681) (13,264,112) Extraordinary gain - - - - -
Total other financing
sources (uses) (1,896,434) (108,972) - (265,005) (138,982) Net change in fund balances $ (220,731) $ (14,998,577) $ (5,733,475) $ 2,075,363 $ 12,685,040 Debt service as a percentage of
non-capital expenditures -13.0% 1.0% -0.6% 0.2% 0%
Notes:
(1) Economic/Community Development became a part of Development Services.

Source: City Finance Department
167
Fiscal Year
2020 2021 2022 2023 2024
$ 259,638,738 $ 300,024,833 $ 327,513,037 $ 334,818,480 $ 347,645,193 3,454,071 4,001,187 3,384,880 3,739,812 4,382,047
124,484,134 194,092,532 132,065,048 105,459,811 83,414,324 32,551,009 43,705,171 45,230,702 47,876,607 47,709,994
20,828,104 25,163,614 21,038,680 17,494,003 23,120,924
2,842,822 105,421 (6,142,577) 5,910,369 21,186,528
241,524 369,430 209,264 54,797 68,758
4,712,882 5,436,208 4,803,249 2,642,294 2,911,135
448,753,284 572,898,396 528,102,283 517,996,173 530,438,903 23,763,499 19,876,458 29,410,337 32,475,729 43,832,011
106,465,614 116,398,680 136,388,113 149,324,252 166,293,373 44,793,126 49,371,815 53,004,524 56,758,508 61,012,401
28,993,981 31,703,085 34,664,649 37,396,998 42,893,840
22,214,583 23,357,612 24,994,665 30,095,350 35,097,253
15,810,027 9,375,387 11,903,919 13,747,976 15,938,295
- 13,878,647 49,808,331 28,216,989 22,981,952
11,500,076 42,480,433 20,501,031 13,458,915 11,627,476
166,425,210 117,607,121 130,187,708 111,757,702 86,995,276 1,227,678 1,216,297 1,317,651 1,199,445 640,646
41,790 30,499 17,809 6,339 3,187
421,235,584 425,296,034 492,198,737 474,438,203 487,315,710 27,517,700 147,602,362 35,903,546 43,557,970 43,123,193 - - - - -
47,648,113 46,659,400 870,288 57,645,726 32,795,410
(48,092,817) (50,541,564) (79,878,533) (65,843,219) (40,834,889) - - - - -
(444,704) (3,882,164) (79,008,245) (8,197,493) (8,039,479) $ 27,072,996 $ 143,720,198 $ (43,104,699) $ 35,360,477 $ 35,083,714 0 0 0 0.2% 0.1%
168

CITY OF BAKERSFIELD
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years (1)
Fiscal
Year
General
Property
Taxes
Sales and
Use Taxes
Transient
Occupancy
Taxes
Business
License
Taxes
Utility
Franchise
Taxes
In-Lieu and
Other Taxes Total Taxes
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 2024 111,318,789 203,937,875 12,123,813 5,001,470 0 - 1,512,943 333,894,890 Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements. (2) Includes Vehicle License Fee in Lieu revenue.
(3) Includes additional taxes and Utility Surcharge revenues designated by ordinance for road purposes.

Source: City Finance Department
169

CITY OF BAKERSFIELD
Principal Property Taxpayers
Current Year and Nine Years Ago
2015 2024
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 199,063,518 0.81% 235,787,343 0.59% Chevron USA Inc. 197,309,584 0.80% 186,258,395 0.47%
Valley Plaza Mall LP 125,784,185 0.51% 148,435,218 0.37% Caifornia Water Service Company 83,696,749 0.34% 156,706,154 0.39% Castle & Cooke CAL Inc. 79,158,410 0.32% 123,740,683 0.31% Walmart Stores Inc/Sam's 89,580,478 0.36% 125,783,852 0.32% DS Properties 18 LP - -% 94,931,567 0.24%
Bolthouse Land Company LLC - -% 78,873,518 0.20%
GSF Springs Investors LP - -% 67,400,558 0.17%
GSF Edgewater Investors LP 67,653,948 0.27% - -%
LSREF2 Tractor REO BAK LLC 54,550,000 0.22% - -%
Donahue Schriber Realty Group LP 74,957,932 0.30% - -%
Brighthouse Networks LLC 52,364,664 0.21% - -%
Sillect Heart LLC - -% 63,412,000 0.16%
Total taxable assessed value of
ten (10) largest taxpayers 1,024,119,468 4.14% 1,281,329,288 %3.22 Total taxable assessed value of other taxpayers 23,580,392,241 95.86% 38,595,884,182 %96.78 Total taxable assessed value of all taxpayers 24,604,511,709 100.00% 39,877,213,470 %100.00 Note:

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

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

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

Ended
June 30
Residential
Property
Commercial
Property Other Unsecured
Tax Exempt
Real Property
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
2024 29,556,320 5,831,091 5,268,002 982,395 1,760,595
(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. 171
Total Taxable Total
Estimated
Actual
Assessed
Value
Direct
Rate
Taxable
Value (1)
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
39,877,213 0.1618 Unavailable
172

CITY OF BAKERSFIELD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
2015 2016 2017 2018
Basic County-Wide Levy (1) 1.0000 1.0000 1.0000 1.0000
Overlapping Debt
Bakersfield Refund 1989C & D - - - -
Bakersfield School 0.0186 0.0339 0.0204 0.0522
Beardsley School 0.0406 0.0480 0.0723 0.0638
Edison School Bond 0.0678 0.0716 0.0706 0.0755
Fairfax School 0.0692 0.0712 0.0631 0.1075
Fruitvale School Bonds 0.0595 0.0591 0.0516 0.0534
Greenfield School 0.0544 0.0445 0.0438 0.0419
Kern Community College District 0.0105 0.0136 0.0132 0.0363 Kern County Water Agency 0.0525 0.0537 0.0585 0.0785
Kern High School District 0.0361 0.0324 0.0260 0.0533
Lakeside School 0.0254 0.0267 0.0236 0.0264
Lamont School 0.0630 0.0657 0.0681 0.0682
Norris School 0.0489 0.0498 0.0565 0.0579
Panama Buena Vista School 0.0294 0.0330 0.0243 0.0224
Rio Bravo-Greeley 0.0649 0.0581 0.0629 0.0687
Standard Bond 0.0208 0.0219 0.0403 0.0770
Standard Bond 2006A 0.0110 0.0140 - -
Vineland School 07-A 0.0431 0.0456 0.0441 0.0453
Total Direct & Overlapping Tax Rates (2) 1.7157 1.7428 1.7393 1.9283 City Share of 1% Levy (3) 0.1839 0.1839 0.1839 0.0184
Total Direct Rate (4) 0.1623 0.1616 0.1613 0.1609
(1) In 1978 the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.

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

Source: HDL Coren & Cone (Kern County Auditor-Controller's Office) 173
2019 2020 2021 2022 2023 2024

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
- 0.0020 - - -

0.0449 0.0379 0.0466 0.0386 0.0348 0.0378

0.0671 0.0659 0.0559 0.0647 0.0480 0.0474

0.0738 0.0644 0.0640 0.0690 0.0619 0.0856

0.1009 0.0743 0.0754 0.0819 0.0806 0.0829

0.0731 0.0525 0.0454 0.0503 0.0445 0.0401

0.0398 0.0678 0.0683 0.0764 0.0812 0.0647

0.0337 0.0330 0.0339 0.0386 0.0312 0.0343

0.0707 0.0812 0.0791 0.0791 0.0768 0.0718

0.0512 0.0532 0.0485 0.0417 0.0439 0.0358

0.0242 0.0250 0.0300 0.0300 0.0223 0.0245

0.0639 0.0659 0.0655 0.0641 0.0618 0.0599

0.0373 0.0391 0.0378 0.0521 0.0399 0.0315

0.0288 0.0558 0.0521 0.0512 0.0475 0.0788

0.0517 0.0720 0.0636 0.0703 0.0535 0.0228

0.0602 0.0663 0.0617 0.0807 0.0634 0.0547
- - - - - -

0.0238 0.0437 0.0274 0.0316 0.0301 0.0314

1.8451 1.9000 1.8552 1.9203 1.8214 1.8040

0.1839 0.1839 0.1839 0.1839 0.1839 0.1839

0.1607 0.1604 0.1647 0.1641 0.1639 0.1618
174

CITY OF BAKERSFIELD
Property Tax Levies and Collections
Last Ten Fiscal Years (1)
Collected within the
Fiscal Year of the Levy Total Collections to Date
Fiscal Year
Ended
June 30
Tax Levied
for the
Fiscal Year Amount
Percentage
of Levy
Collections
in Subsequent
Years (2) Amount
Percentage
of Levy (3)
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% 2024 64,748,654 64,362,574 99.40% 245,576 64,608,150 99.78% Notes:
(1) Excludes Redevelopment property tax increment.
(2) Delinquent tax collections do not include interest or penalties. (3) Total collections to date may exceed 100% of annual levy. Delinquent tax collections are recorded in the current levy year as the County of Kern does not give detail as to the levy year for delinquent tax collections. This was confirmed with the County of Kern in 2014.

Source: City Finance Department
175

CITY OF BAKERSFIELD
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Year
State of
California
Total
Rate
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
2024 %7.25 %8.25
Note: The City's sales tax rate may be changed with voter approval.

Source: California Department of Tax and Fee Administration 176

CITY OF BAKERSFIELD
Taxable Sales By Category Market Groups
Last Ten Calendar Years
(in thousands of dollars)
2014 2015 2016 2017 2018
Apparel Stores $ 268,897 $ 275,099 $ 281,878 $ 287,232 $ 302,599 General Merchandise 902,944 907,685 893,331 917,083 950,000 Food Stores 172,326 164,207 158,627 158,343 165,416
Eating and Drinking Places 656,379 701,627 724,843 767,018 802,252 Building Materials 544,666 553,276 564,361 581,131 630,907 Auto Dealers and Supplies 1,315,912 1,355,170 1,346,606 1,431,179 1,436,629 Service Stations 528,591 455,773 409,770 460,705 530,371 Other Retail Stores 841,272 816,507 786,449 783,220 789,365 All Other Outlets 1,938,339 1,558,102 1,467,580 1,588,600 1,679,685 Total $ 7,169,326 $ 6,787,446 $ 6,633,445 $ 6,974,511 $ 7,287,224 Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 177
2019 2020 2021 2022 2023
$ 308,328 $ 242,398 $ 392,748 $ 359,429 $ 352,773
963,148 956,554 1,138,471 1,203,850 1,147,995
171,118 198,136 205,484 221,840 216,663
847,033 755,367 1,032,165 1,097,528 1,149,335
636,725 733,067 800,456 843,459 878,760
1,479,028 1,540,188 1,975,894 1,945,615 1,930,223
539,165 433,906 620,017 754,195 683,994
773,010 746,515 930,124 905,566 876,382
1,837,407 2,052,473 2,262,334 2,732,924 2,191,789
$ 7,554,962 $ 7,658,604 $ 9,357,693 $ 10,064,406 $ 9,427,914 178

CITY OF BAKERSFIELD
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Year
General
Obligations
Bonds
Net
Bonded Debt Total
Ratio of Net
Bonded Debt to
Assessed
Value
Population
(1)
Total
Debt
Per
Capita
2015 $ - $ - $ - %- 365,504 $-
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 - - - - 408,373 0.00
2024 $ - $ - $ - - -
Notes:

Includes all long-term general obligation bonded debt.
(1) State Department of Finance
Source: City Finance Department
179
180

CITY OF BAKERSFIELD
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities
Revenue Bonds Notes
Certificates of
Participation
Total
Governmental
Activities (3) Revenue Bonds Bonds
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 -
2024 - 1,646,568 - 1,646,568 101,039,222 -
Notes:

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

Source: City Finance Department
181
Business-Type Activities
Deferred
Bond
Premium Notes
Contracts/
Loans
Capital
Leases (4)
Total
Business-Type
Activities
Total Primary
Government
Percentage
of Personal
Income (1)
(4)
Per
Capita (2)
(4)
$ - $ 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 - 2,146,415 384,932 64,551 103,635,120 105,281,688 %0.82 256 182

CITY OF BAKERSFIELD
Direct and Overlapping Debt (1)
As of June 30, 2024
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 $ 82,855,810 34.567 $ 28,640,768 Kern Community College District School
Facilities Improvement District No. 1 377,870,000 34.360 129,836,132 Kern High School District 371,616,209 53.181 197,629,216 Bakersfield City School District 124,826,619 72.112 90,014,971 Beardsley School District 18,707,792 19.516 3,651,013
Edison School District 6,174,465 0.051 3,149
Fairfax School District 15,183,945 30.153 4,578,415
Fruitvale School District 32,232,434 72.028 23,216,378
Greenfield Union School District 44,973,406 85.999 38,676,679 Lakeside Union School District 21,056,220 48.433 10,198,159 Lamont School District 1,218,162 0.015 183
Norris School District 32,720,479 56.829 18,594,721
Panama-Buena Vista Union School District 126,195,000 97.239 122,710,756 Rio Bravo-Greeley Union School District 7,518,673 9.900 744,349 Standard School District 44,905,000 0.638 286,494
Vineland School District 3,305,208 0.0003 10
California Statewide Community Development Authority-Community Facilities District No. 2015-02 9,680,000 100.000 9,680,000 Greenfield Union School District CFD No. 1 3,288,080 100.000 3,288,080 Greenfield Union School District CFD No. 2 940,000 100.000 940,000 Greenfield Union School District CFD No. 4 7,970,000 100.000 7,970,000 Greenfield Union School District CFD No. 2005-3 1,795,381 100.000 1,795,381 RNR School Financing Authority Community Facilities District No. 92-1 110,760,000 73.364 81,257,966 California Statewide Community Development Authority- Assessment District No. 2020-01 1,458,000 100.000 1,458,000
California Statewide Community Development Authority- Assessment District No. 2022-01 811,000 100.000 811,000
California Statewide Community Development Authority- Assessment District No. 2022-02 1,135,000 100.000 1,135,000
California Statewide Community Development Authority Assessment District No. 2023-01 1,180,000 100.000 1,180,000
City of Bakersfield 1915 Act Bonds 5,795,633 100.000 5,795,633 Overlapping Tax and Assessment Debt $ 1,456,172,516 $ 784,092,453 Overlapping General Fund Debt
Kern County General Fund Obligations $ 97,928,487 33.650 $ 32,952,936 Kern County Pension Obligations 76,148,636 33.650 25,624,016 Certificates of Participation:

Kern County Board of Education 29,985,000 33.650 10,089,953 Kern County Community College District 21,263,000 30.971 6,585,364 Kern County Community College District Benefit 71,870,000 30.971 22,258,858 Fairfax School District General Fund Obligations 1,753,225 30.153 528,650 Bakersfield City School District General Fund Obligations 2,028,830 72.112 1,463,030 Panama-Buena Vista Union School District General Fund Obligations 48,940,000 97.239 47,588,767 Rosedale Union School District General Fund Obligations 9,435,000 54.692 5,160,190 Overlapping Tax Increment Debt (Successor Agency) 1,530,000 100.000 1,530,000 Overlapping General Fund Debt $ 360,882,178 $ 153,781,764 Total Overlapping Debt $ 1,817,054,694 $ 937,874,217
Direct Debt
City of Bakersfield
Long-term notes payable $ 1,646,568
Total Direct and Overlapping Debt $ 939,520,785
Notes:
(1) Excluded from this schedule are: (a) all bonds which are not general obligation bonds of the City and (b) general obligation bonds issued for water utility purposes which are payable from Water Fund revenues.
(2) Direct debt is reported net of debt service monies available. Overlapping debt is reported at gross values. (3) Percentage of overlapping agency's assessed valuation located within boundaries of the City.

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

CITY OF BAKERSFIELD
Computation of Legal Debt Margin
June 30, 2024
Legislation does not mandate a debt limit for the City of Bakersfield. 184

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

Operating
Net
Available Debt Service (3)
Year Revenue (1) Expenses (2) Revenue Principal Interest 2014-2015 $ 40,386,623 $ 14,195,887 $ 26,190,736 $ 4,360,000 (7) $ 8,744,990 2.00 2015-2016(5) 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 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(8) 45,430,671 16,266,552 29,164,119 7,245,000 4,841,040 2.41 2021-2022(9) 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 2023-2024 51,610,642 22,789,545 28,821,097 8,450,000 3,619,147 2.39 Notes:

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

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

Source: City Finance Department
185

CITY OF BAKERSFIELD
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Population (1)
Personal
Income (2)
(millions)
Per Capita
Personal
Income (2)
Median
Age (3)
Education Level
as a % of
Population having
Formal Schooling
(3) (4)
Elementary
School
Enrollment
Estimated
Unemployment
Rate (%) (5)
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 397,392 10,227 25,734 30.8 80.1 - 11.20%
2021-2022(6) 408,865 10,374 25,372 31.0 81.4 - 8.00%
2022-2023 408,373 11,499 28,157 31.3 81.5 - 4.80%
2023-2024 411,109 12,894 31,365 31.5 81.6 - 6.00%
Notes:
(1) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time. (2) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Information is for Bakersfield Metropolitan area. Effective 2008-2009 information now includes Delano area.
(3) U.S. Census Bureau estimates as available for Bakersfield Metropolitan area. (4) This column shows the percent of the City population 25 years and older who are high school graduates or higher. (5) State of California Employment Development Department (Data shown is for Kern County). (6) Elementary School Enrollment numbers for 2017-18 restated due to new data collection techniques by the Department of Education. 186

CITY OF BAKERSFIELD
Principal Employers (1)
Current Year and Nine Years Ago
2015 2024
Employer Employees Rank
Percent
of Total City
Employment Employees Rank
Percent
of Total City
Employment
County of Kern (1) 7,800 1 %4.45 7,559 1 %4.199
Kern High School District (1) 4,017 2 %2.29 5,406 2 %3.003 Bakersfield City School District 3,254 3 %1.86 3,811 3 %2.117 San Joaquin Community Hospital 2,107 4 %1.20 - %-
WM Bolthouse Farms 1,939 5 %1.11 1,572 10 %0.873
Panama-Buena Vista Union School
District 2,069 6 %1.18 3,055 5 %1.697
Chevron Corp 1,860 7 %1.06 - %-
Nabors Completion & Production
Service %- - %-
Bakersfield Memorial Hospital 1,700 8 %0.97 - %-
City of Bakersfield 1,507 9 %0.86 1,799 8 %0.999
Mercy Hospital 1,350 10 %0.77 - %-
Dignity Health - 3,520 4 %1.956
Kern Medical Center - 2,437 7 %1.354
Adventist Health Bakersfield - 2,745 6 %1.525
Kern County Seperintendent of
Schools - 1,766 9 %0.981
Others 147,597 %84.24 146,330 %81.294
Total 175,200 %100.00 180,000 %100.000
(1) Not all employees are employed within the Bakersfield City Limits.

Source: City Finance Department.

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

Note: Only current data is available.
187
188

CITY OF BAKERSFIELD
Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020
Function
Governmental activities:

General government 126 123 123 124 143 159
Public safety
Police
Officers 404 404 407 407 450 479
Civilians 148 148 148 151 176 193
Fire
Firefighters and officers 177 177 177 177 184 200
Civilians 22 22 22 23 23 25
Public works 248 244 243 247 261 293
Community services 150 146 146 148 163 175
Community development 65 63 63 63 - -
Development services - - - - 79 92
Economic/Community dev. - - - - - -
Business-type activities:

Wastewater treatment 59 59 59 61 62 64
Refuse collection 107 107 108 109 111 112
River & Agricultural Water (1) 28 28 29 29 30 32
General aviation - - - - - -
Offstreet parking - - - - - -
Total 1,534 1,521 1,525 1,539 1,682 1,824
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department
189
2021 2022 2023 2024
158 181 172 -
501 502 531 -
216 229 205 -
199 199 199 -
25 33 32 -
277 305 305 -
180 203 203 -
- - - -
125 104 110 -
- 30 29 -
62 49 50 -
115 122 122 -
32 32 36 -
- - - -
- - - -
1,890 1,989 1,994 -
190

CITY OF BAKERSFIELD
Property Value, Construction and Bank Deposits (1)
Last Ten Calendar Years
Commercial
Construction
Residential
Construction
Other
Construction
No. of
Units Value
No. of
Units Value Value
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
2023 127 52,404 1,246 379,133 407,171
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, 2024 data reflects the 2023 calendar year.

Source: City Finance Department
191
Total
Construction
No. of
Units Value
Bank
Deposits (2)
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
1,373 838,708 9,836,537
192

CITY OF BAKERSFIELD
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018
Function
Public safety - Police
Physical arrests 24,254 19,965 13,008 9,502
Parking violations 6,183 4,083 3,843 2,238
Traffic violations 24,154 26,934 24,190 16,548
Public safety - Fire
Number of calls answered 35,117 35,747 38,823 40,945
Inspections 4,978 5,684 6,859 5,649
Public works
Street resurfacing (lane miles) 119 79 70 75
Refuse collection
Refuse collected (tons/day) 102,500 102,800 103,100 102,200 Recyclables collected (tons/day) 78,500 79,100 79,500 82,700 Recreation & parks
Athletic field permits issued 9,046 8,054 7,788 8,224
Community center,
aquatics/sports admissions 527,617 553,831 518,432 534,959 River & Agricultural water (1)
New connections 1,033 945 968 500
Water main breaks 5 4 4 3
Average daily consumption 34,973 29,812 33,378 36,128
(thousands of gallons)
Wastewater treatment
Average daily sewage treatment 29.9 MGD 28.7 MGD 29.0 MGD 29.6 MGD (millions of gallons)
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.

Source: City Finance Department
193
Fiscal Year
2019 2020 2021 2022 2023 2024
9,895 8,569 7,190 8,859 9,620 11,770
10,438 14,207 7,297 18,053 11,958 10,811
24,739 21,879 23,679 18,080 28,772 25,625
42,027 44,560 49,465 50,625 50,022 45,155
8,712 8,330 4,694 7,401 11,972 12,007
115 90 100 130 90 95
175,081 177,885 220,259 223,469 - -
87,680 89,786 66,956 62,253 - -
7,046 4,589 794 2,088 3,571 3,257
542,580 431,568 81,245 255,498 335,429 354,838
755 714 675 1,124 769 689
2 3 5 2 - 6
35,588 40,173 48,247 40,976 36,177 40,464

28.9 MGD 29.1 MGD 29.4 MGD 29.9 MGD 29.2 MGD 29.1 MGD
194

CITY OF BAKERSFIELD
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018
Function
Land (1)
Area 150.18 150.97 151.10 151.10
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 1,553 1,596 1,505
Streetlights 16,486 16,781 17,042 18,632
Traffic signals 419 420 426 428
Recreation & parks
Parks acreage 769 769 776 810
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) 515 525 535 589
Fire hydrants (2) 10,853 11,117 11,130 11,396
Wastewater treatment
Sanitary sewers (miles) 1,072 1,076 1,077 1,077
Storm sewers (miles) 268 269 270 270
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
195
Fiscal Year
2019 2020 2021 2022 2023 2024
151.14 151.15 151.15 151.64 - -
3 3 3 2 2 2
14 14 14 14 14 14
67 74 66 71 - -
1,506 1,517 1,537 1,492 - -
18,635 18,639 19,095 19,850 19,595 20,241
431 433 440 447 - 450
810 828 662 662 662 692
59 61 61 61 61 62
4 4 4 4 4 4
3 3 3 3 3 3
592 608 615 620 626 635
11,467 11,697 11,814 11,966 12,096 12,222
1,086 1,090 1,099 1,107 - -
274 276 280 284 - -
57 MGD 57 MGD 57 MGD 57 MGD 57 MGD 57 MGD
196

CITY OF BAKERSFIELD
Schedule of Insurance in Force
June 30, 2024
Excess Workers' Compensation Statutory Limit with a $500,000 self-insured retention.

Excess Liability $ 60,000,000 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 $25,000 for all risk deductable, $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. 197
Insurance Company Policy Number
Expiration
Date Annual Premium
PRISM PRISMPE24 EWC-04 07/01/2025 $ 2,203,104
ACCEL 07/01/2025 6,595,831
National Union Fire ACIP13090202 07/01/2025 19,518
Pik West AAPN14413352003 07/01/2026 4,732
Pik West AACN10687846005 07/01/2025 9,077
Hudson SFD3121120506 10/01/2025 12,799
CSAC PROPERTY2023 03/31/2023 797,860
PRISM PRISMPR24-25 03/31/2025 1,267,560
PRISM B0180FN2433951 06/30/2025 50,023
Voya Financial 0067794-4 12/31/2024
$3.00 per thousand dollar of salary, management
& supervisory $2,000 plus annual salary
maximum benefit $100,000.

Voya Financial 0067794-9 12/31/2024
Safety-$27.30 each permanent employee for
$12,000 coverage.

Voya Financial 0067794-9 12/31/2024
Blue/White Collar Units: $68.38 each permanent
employee for $30,000 coverage.

Blue Shield PPO Health W0054380 12/31/2024 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 12/31/2024
United Concordia
DHMO Dental 920318-001
Medical Eye Service
HMO Vision 16269 12/31/2024
Medical Eye Service
PPO Vision 16270
198
199

Finance, Economic Development and Jobs CommitteeApril 10, 2026

Finance, Economic Development and Jobs Committee
April 10, 2026