Barstow City Council
February 7, 2022

220 EAST MOUNTAIN VIEW, SUITE A, BARSTOW, CA 92311
WWW.BARSTOWCA.ORG
FISCAL YEAR ENDED JUNE 30, 2021
ANNUAL

COMPREHENSIVE

FINANCIAL
REPORT
About the Cover:  The First Avenue Bridge over the Burlington Northern and Santa Fe (BNSF) railyard was originally  constructed  in  1930.   The  City  of  Barstow  in  cooperation  with  the  California Department  of Transportation  and  the  San  Bernardino  County  Transportation  Authority  is  proposing  to  replace  the existing two‐lane bridge over the BNSF railyard with a new two‐lane bridge with eight foot shoulders and an eight foot wide sidewalk.  The estimated start of construction is anticipated to commence in the fall of 2022.
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CITY OF BARSTOW

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................... i Organizational Chart ......................................................................................................................... v List of Elected and Appointed Officials ............................................................................................ vi

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................................ 7

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................ 23 Statement of Activities ............................................................................................................. 24 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds .............................................................................. 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................................................................................ 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ................................................................................................ 37 Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds .................................................................. 38 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds ....................................................................................... 39 Statement of Cash Flows - Proprietary Funds .................................................................. 40 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position - Fiduciary Funds ..................................................... 42 Statement of Changes in Fiduciary Net Position - Fiduciary Funds .................................. 43 Notes to Basic Financial Statements .............................................................................................. 47

CITY OF BARSTOW

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Budgets and Budgetary Accounting:

Budget Control and Budgetary Accounting .............................................................................. 95 Budgetary Comparison Schedules:

General Fund ..................................................................................................................... 96 Measure I Special Revenue Fund ..................................................................................... 97 Barstow Fire Protection District Special Revenue Fund ................................................... 98 Grants Special Revenue Fund .......................................................................................... 99 Defined Benefit Pension Plan:

CalPERS Cost Sharing Plan:

Schedule of the City’s Proportionate Share of the
Net Pension Liability.................................................................................................. 100 Schedule of Plan Contributions ....................................................................................... 101 SBCERA Cost Sharing Plan:

Schedule of the City’s Proportionate Share of the
Net Pension Liability.................................................................................................. 102 Schedule of Plan Contributions ....................................................................................... 103 OPEB Plan
City of Barstow Plan - Schedule of Changes in Net OPEB Liability and Related Ratios ............................................................................................................................... 104 Barstow Fire Protection District Plan - Schedule of Changes in Net OPEB Liability and Related Ratios .......................................................................................................... 105 City of Barstow - Schedule of Contributions - OPEB ............................................................. 106 Barstow Fire Protection District Plan - Schedule of Contributions - OPEB ........................... 107

SUPPLEMENTARY INFORMATION
Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................... 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................116 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

Gas Tax Special Revenue Fund ..................................................................................... 119 Asset Seizure Special Revenue Fund ............................................................................. 120 Barstow Harvey House Foundation Services Special Revenue Fund ............................ 121 Redevelopment Housing Successor Special Revenue Fund .......................................... 122 Barstow Community Services Foundation Special Revenue Fund ................................. 123 Local Transportation Special Revenue Fund .................................................................. 124 Flood Control Special Revenue Fund ............................................................................. 125 Covid-19 Grants ..............................................................................................................126 Measure I TRIP Debt Service Fund ................................................................................ 127 City Capital Projects Fund ............................................................................................... 128

CITY OF BARSTOW

ANNUAL COMPREHENSIVE FIANCIAL REPORT
FOR YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number
Custodial Funds:

Combining Statement of Fiduciary Assets and Liabilities ...................................................... 130 Combining Statement of Changes in Assets and Liabilities .................................................. 131

STATISTICAL SECTION (UNAUDITED)
Description of Statistical Section .................................................................................................. 135 Net Position by Component – Last Ten Fiscal Years ................................................................... 137 Changes in Net Position – Last Ten Fiscal Years ........................................................................ 138 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................ 140 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................. 141 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................................................................................................ 142 Assessed Value and Estimated Actual Value of Taxable Property by Class – Last Ten Fiscal Years ............................................................................................................. 143 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .......................................... 144 Largest 2020-21 Local Secured Taxpayers ................................................................................. 145 Principal Property Tax-Payers – Current Year and Ten Years Ago ............................................. 146 Property Tax Levies and Collections – Last Ten Fiscal Years ..................................................... 147 Top 25 Sales Tax Producers 2021 ............................................................................................... 148 Top 25 Sales Tax Producers 2012 ............................................................................................... 149 Taxable Sales by Category .......................................................................................................... 150 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ...................................................... 151 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years. ....................................... 152 Direct and Overlapping Governmental Activities Debt ................................................................. 153 Legal Debt Margin Information – Last Ten Fiscal Years .............................................................. 154 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................. 155 Demographic and Economic Statistics – Last Ten Calendar Years ............................................. 156 Principal Employers ...................................................................................................................... 157 Full-Time and Part-Time City Employees by Function – Last Ten Fiscal Years .......................... 158 Operating Indicators by Function – Last Ten Fiscal Years ........................................................... 159 Capital Asset Statistics by Function – Last Ten Fiscal Years ....................................................... 160

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December 17, 2021
For the Citizens of the City of Barstow,
Honorable Mayor and City Council
City of Barstow
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Barstow.

State law requires that all general-purpose local governments publish each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report of the City of Barstow for the fiscal year ended June 30, 2021.

This report consists of management’s representations concerning the finances of the City of Barstow.

Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. Management of the City of Barstow has established a comprehensive internal control framework that is designed to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not exceed anticipated benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than, absolute assurance that the financial statements will be free from material misstatement.

The City of Barstow’s financial statements have been audited by Lance, Soll, & Lunghard, LLP, a firm of licensed certified public accountants. The independent auditors have issued an unmodified opinion and have concluded that the City’s financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with generally accepted accounting principles. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Barstow’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE CITY
The Reporting Entity
This report combines the financial statements of the City of Barstow, and its component units, the Barstow Public Financing Authority, the Barstow Public Facilities Corporation, the Odessa Water District, the Barstow Harvey House Foundation, Barstow Community Services Foundation and the Barstow Fire Protection District to constitute a single reporting entity. The City Council serves as the governing board of these component units and, as such, this combined presentation better represents the financial activities of the City of Barstow.

The City directly provides a full range of services, including police and fire protection services. Contracted services include engineering, street sweeping, solid waste management, and attorney services. Staff i
provided services include police services and fire protection services, customer service and community relations, community development (which includes planning, economic development, housing and grant administration activities as well as overall department administration), public works oversight including construction and maintenance of roadways, parks and streets, recreational and cultural activities, sewer utility services and general administrative services. All of these activities are included in this report.

Fire protection is provided by the Barstow Fire Protection District, a subsidiary agency of the City.

The City is served by private water companies. However, sewerage services are provided by the City of Barstow. Additionally, the Barstow Unified School District is a separate entity and, accordingly, not included in this report.

History of the City
The City of Barstow is a General Law Council/Manager municipality incorporated in 1947. It is located in the northern part of the County of San Bernardino, approximately 114 miles northeast of Los Angeles, and approximately 70 miles north of the City of San Bernardino. The City boundary encompasses approximately 40 square miles and serves a population of over 24,000. The City prides itself as the “Crossroads of Opportunity” at the juncture of the I-40 and I-15 freeways. Situated midway between Los Angeles and Las Vegas, Barstow caters to the needs of approximately 55 million travelers passing through the City annually.

The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The Council is elected on a non-partisan basis. Council members serve four-year terms and elections are staggered every two years.

The mayor is elected to serve a four-year term. The mayor is elected at large while the council members are elected by districts.

The City Manager is responsible for carrying out the policies and ordinances of the governing body, and for overseeing the day-to-day operations of the City government working with the directors and managers of various City departments.

The City Manager administers the Annual Operating and Capital Improvement Budget and maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the appropriated budget approved by the City’s governing body. Activities of the general fund, special revenue funds, enterprise funds, debt service fund and capital projects funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the individual fund level. Appropriations lapse at year end. However, encumbrances and project appropriations generally are re-appropriated as part of the following fiscal year’s operating budget.

ECONOMIC CONDITION AND OUTLOOK
From a historical perspective, growth in the City of Barstow has proceeded at a fairly slow, but steady pace.

Major industries located within the city’s boundaries, or in close proximity, included major military installations with both military and civilian personnel, national defense contractors, transportation and rail firms, as well as numerous educational and financial institutions. The most current population figures show San Bernardino County has increased its population by 0.61% from January 1, 2020 to January 1, 2021. ii
The population for the City of Barstow had a slight decrease of 0.5% according to the California Department of Finance. The unemployment rate as of June 2021 for the City is 8.0% which is a decrease from 12.1% at the beginning of the COVID-19 pandemic in June 2020. Staff continues to pursue economic development in areas of the local economy that will provide job opportunities for residents.

Sales tax revenue, excluding Measure Q, increased from $6.1 million in fiscal year 2020 to $7.5 million in fiscal year 2021, largely due to rebounding revenues from the downturn caused by the COVID-19 pandemic. The City’s transient occupancy tax continues to be a major source of revenue for the City and came in at $3.44 million for fiscal year 2021, up from $2.85 million in fiscal year 2020. City management remains optimistic that negative impacts of the COVID-19 pandemic on the City’s revenue bases are mostly behind us.

MAJOR ACTIVITY IN THE CITY:

Major development activities are underway in the City consistent with the City’s General Plan and Council’s vision and direction to improve and upgrade infrastructure, public services, and promote economic growth and development. Some of these development activities include:
 The City has approved construction of a Marriott hotel project in the Lenwood area of Barstow along the freeway. The project includes constructing two hotels totaling 181 rooms using an innovative shared footprint design. The two hotels are a Fairfield Inn (short term stay) and a Towne Place Suites (long term stay). The hotels are currently under construction and expected to open in July, 2022. The hotels are located close to the Outlet mall and conservatively will add over $1 million annually in new revenues.
 The City has entered into two Inter Governmental Service Agreements (IGSAs) with Fort Irwin (Army) and are in the process of completing negotiations on three more that are expected to add over $800,000 annually in new revenues. The three additional IGSC contracts are now awaiting final approvals from the Army which is expected to occur within the next few months.  The City has approved creation of a “green zone” and are beginning to take applications as of December 1, 2021 and anticipating issuance of permits in January, 2022. Based upon a Cannabis fee study completed for the City by HdL, subject area experts, the City is expecting to receive over $250,000 in new revenues during the current fiscal year. Thereafter, the City will receive over $70,000 annually in regulatory fees plus 3% of gross sales (above the City’s existing 2%) per approved development agreements. Annual revenues received pursuant to approved development agreements are expected to be significant.
 The City continued its efforts to improve infrastructure in fiscal year 2021. The major infrastructure projects are pavement preservation, the design phase for Phase One of the West Section 7 project, the First Avenue Bridge over the BNSF Classification Yard project, and the First Avenue Bridge over the Mojave River project.
 The City successfully passed a local general sales tax ballot measure on November 6, 2018. Income from the new general sales tax measure began to be collected on April 1, 2019. The City received over $8.85 million from the sales tax measure in fiscal year 2021, an increase of $1.4 million from the prior fiscal year.
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iv

LONG-TERM FINANCIAL PLANNING
The City continues to maintain a Council mandated reserve of 20% Working Capital and 5% for emergencies. The Fiscal Year 2020-22 Budget falls within the policy guidelines set by the City Council for budgetary and planning purposes. The City’s financial condition is continuously being monitored and has improved due to the passage of the Measure Q Local Sales Tax, a 1% general tax available to fund senior and youth recreation programs; assist with maintaining roads and parks; and improve police and fire services. Periodically, interim financial reports are presented to City Council regarding the budgetary performance of all major funds. By closely monitoring revenues, expenditures, and financial trends, the City has been able to manage the current economic downturn, thus reducing the impact on City services due to the pandemic. Current economic factors and potential future impacts of the COVID-19 pandemic continue to be carefully monitored and tracked by staff.

AWARDS AND ACKNOWLEDGEMENTS
Awards
The City’s Annual Comprehensive Financial Report for the year ended, June 30, 2021, was prepared utilizing best practices and in conformity with the awards program criteria for the Certificate of Achievement for Excellence in Financial Reporting as promulgated by the Government Finance Officer’s Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report for the year ended, June 30, 2021, conforms to the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for the certificate.

Acknowledgements
In closing, this report was made possible by the leadership and support of the governing body of the City of Barstow.

The preparation of this report on a timely basis is a team effort, requiring the dedication and cooperation of the entire Finance Department staff and continued support of the City Manager’s Office and City Council.

The guidance and suggestions from the accounting firm of Lance, Soll and Lunghard, LLP, were also invaluable in completion of this report.

Sincerely,
Marc R. Puckett
Interim Finance Director
220 East Mountain View Street ▪ Barstow, CA 92311
Office: (760) 256-3531 ▪ http://www.barstowca.org

CITY OF BARSTOW ORGANIZATIONAL CHART
The People
Elected: City Council,Treasurer &
City Clerk
City Manager
Fire Department Police Department Finance Department
Municipal Records
Community / Economic Development Department
Community Services Department
Human Resources Division
Information Technology Division
City Attorney
v
City of Barstow
List of Elected and Appointed Officials
June 30, 2021
Elected Officials
Mayor Dr. Paul Anthony Courtney
Council Member, Mayor Pro Tem James M. Noble
Council Member Barbara Mae Rose
Council Member Marilyn Dyer Kruse
Council Member Timothy R. Silva
City Treasurer Michael J. Lewis
City Clerk Andrea Flores
Appointed Officials
Interim City Manager Dr. James Hart
Interim Finance Director Marc Puckett
City Attorney Matthew Summers
Chief of Police Albert Ramirez
Assistant Fire Chief Sidney Hultquist
vi
AUDITORS’ OPINION LETTER

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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Barstow, California
Report on 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 information of City of Barstow, California, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Barstow, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows 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 generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained 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 Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material 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 doubt about the City’s ability to continue as a going concern for twelve months beyond the date of the financial statements.

Lance, Soll & Lunghard, LLP 203N.BreaBlvd.,Suite 203 Brea,CA92821 Phone: 714.672.0022 To the Honorable Mayor and Members of the City Council
City of Barstow, California
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 opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with the GAAS 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 control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism 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 responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the general fund, measure I special revenue fund, Barstow fire protection district special revenue fund, and grants special revenue fund, the schedule of plan contributions (CalPERS and SBCERA), the schedule of proportionate share of the net pension liability (CalPERS and SBCERA), the schedule of changes in net OPEB liability and related ratio (City of Barstow and Barstow fire protection district plans), and the schedule of contributions – OPEB (City of Barstow and Barstow fire protection district plans), be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 To the Honorable Mayor and Members of the City Council City of Barstow, California
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 combining and individual nonmajor fund financial statements and budgetary schedules are 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 derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules 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 report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2021 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, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Brea, California
December 17, 2021
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4 MANAGEMENT’S DISCUSSION

AND ANALYSIS
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6 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021

As management of the City of Barstow (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021.

It is designed to:
 Highlight significant financial issues
 Provide an overview of the City’s financial activity
 Discuss changes in the City’s financial position
 Explain any material deviations from the approved budget  Identify individual fund issues
We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished in our letter of transmittal, which can be found on pages i-vi of this report.

FINANCIAL HIGHLIGHTS
 The governmental program and general revenues were $39.7 million.  The cost of governmental activities was $41.9 million.  The business-type activities program and general revenues were $9.9 million.  The cost of business-type activities was $8.5 million.  The General Fund ended the fiscal year with a fund balance of $17.7 million, with the reported net increase in fund balance of $3.78 million.
 For the General Fund, actual revenues exceeded the budgeted revenue estimates by $5.0 million and actual expenditures were less than final amended budget by $0.5 million (both favorable variances). Effects of the COVID-19 pandemic were less than anticipated.  The Measure I Special Revenue Fund, a major governmental fund, ended the fiscal year with a deficit $1.2 million in fund balance, a deficit reduction of $400,000 from the prior fiscal year.  The Barstow Fire Protection District ended the fiscal year with a deficit fund balance of $5.0 million, a deficit reduction of $1.3 million from the prior fiscal year.  Total Other Governmental Funds had a combined fund balance of $1.2 million.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Barstow’s basic financial statements, which are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. 7 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus revenues are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, recreation and community development. The business-type activities of the City include wastewater reclamation and solid waste disposal.

The government-wide financial statements include not only the City itself, (known as the primary government), but also its legally separate component units. The Odessa Water District, the Barstow Fire Protection District, the Barstow Harvey House Foundation and the Barstow Community Services Foundation all function, for all practical purposes, as part of the City of Barstow, and therefore, have been included (blended) as an integral part of the primary government.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows 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 financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Barstow maintains fourteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Measure I special revenue fund, Barstow Fire Protection District special revenue, and Grants special revenue funds, which are considered to be major funds. Data from the other nine governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements as supplementary information. The non-major revenue funds are the special revenue funds. They are Gas Tax, Asset Seizure, Barstow Harvey House Foundation, Redevelopment Housing Successor Fund, Barstow Community Services Foundation, the Local Transportation Fund, the Flood Control Fund , 8 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
COVID 19 Grants fund, and the Capital Projects Fund. The Measure I TRIP debt service fund is also combined with the non-major governmental funds.

The City adopted a two-year appropriations budget for its governmental and proprietary funds in fiscal year 2020. A budgetary comparison has been provided for the general fund on page 96.

The basic governmental fund financial statements can be found on pages 23-43 of this report.

Proprietary funds
The City maintains two proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its wastewater reclamation and solid waste disposal.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the major enterprise funds. The basic proprietary fund financial statements can be found on pages 38-40 of this report.

Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.

Fiduciary funds are not reflected in the government-wide financial statements because the resources for those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is like that used for proprietary funds. The City maintains two fiduciary funds to account for the receipts and disbursements of special assessments. The City also has one private purpose trust fund to account for redevelopment successor agency activity. Fiduciary fund statements are located on pages 42-43 of this report.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Included in this section is Note 15, which summarizes the activity related to Measure Q, the 1% general transaction tax approved by voters on November 6, 2018.

The notes to the financial statements are located on pages 47-92 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 budgetary information and compliance for the General Fund, Measure I special revenue fund, the Barstow Fire Protection District special revenue fund, and Grants special revenue fund. This section also includes information regarding the Defined Benefit Pension Plan, which includes the California Public Employees’ Retirement System (CALPERS) and the San Bernardino County Employees’ Retirement Association (SBCERA) Plan. The schedule of funding progress, which presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits, is also presented as required supplementary information. Required supplementary information can be found on pages 95-107 of this report.
9 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Supplementary information for the non-major governmental funds, such as Gas Tax special revenue fund, Grants, Asset Seizure, Barstow Harvey House Foundation, Redevelopment Housing Successor, Barstow Community Services Foundation, Local Transportation Fund, Flood Control, and COVID-19 Grants special revenue funds, as well as the Measure I TRIP debt service fund and Capital Projects fund, are located on pages 111-128 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
Net position over time may serve as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $53.9 million at the close of the fiscal year, a decrease of 1.5% from the previous year.

Capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets comprises $105.1 million of the City’s Net Position. Total Assets and Deferred Outflows equaled $147.7 million. Total Liabilities and Deferred Inflows equaled $93.8 million. Total net position from Governmental Activities equaled $37.6 million or 70% and Business-Type Activities equaled 16.2 million or 30% of the $53.9 million total.

Net Investment in
Capital Assets

65.5%
Public Safety

0.0%
Parks & Recreation

0.0%
Capital Projects

0.5%
Low & Mod Income

0.3%
Streets & Highways

0.5%
Unrestricted
-33.2%
Other Purposes

0.0%
City of Barstow Net Position
10 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021

CITY OF BARSTOW NET POSITION
As shown in the total column for 2021 in the chart above (City of Barstow Net Position), a portion of the City’s net position, $2.1 million, represents resources that are subject to restrictions on how they may be used. Of this restricted amount, it is primarily comprised of $0.8 million restricted for capital projects, $0.4 million for low and moderate income projects, and $0.8 million for Streets and Highways. 2021 2020 2021 2020 2021 2020
Current and other assets $ 17,631,885 $ 13,684,950 $ 3,000,435 $ (44,195) $ 20,632,320 $ 13,640,755 Capital & intangible assets 84,787,829 85,712,706 21,969,483 22,793,423 106,757,312 108,506,129 Total Assets $ 102,419,714 $ 99,397,656 $ 24,969,918 $ 22,749,228 $ 127,389,632 $ 122,146,884 Def. employer pens. contributions $ 5,136,925 $ 4,675,093 $ 297,811 $ 210,188 $ 5,434,736 $ 4,885,281 Def. outflows of resources - pens. 11,431,982 9,258,535 468,793 417,622 11,900,775 9,676,157 Deferred contributions - OPEB 885,238 778,880 - - 885,238 778,880 Def. outflows of resources - OPEB 2,053,819 2,057,961 - - 2,053,819 2,057,961 Total deferred outflows $ 19,507,964 $ 16,770,469 $ 766,604 # $ 627,810 # $ 20,274,568 # $ 17,398,279 Current liabilities $ 3,449,058 $ 2,333,733 $ 877,905 $ 441,561 $ 4,326,963 $ 2,775,294 Long-term liabilities 74,946,226 66,843,400 8,288,963 7,796,639 83,235,189 74,640,039 Total Liabilities $ 78,395,284 $ 69,177,133 $ 9,166,868 $ 8,238,200 $ 87,562,152 $ 77,415,333 Deferred pension related items $ 5,532,544 $ 6,608,210 $ 349,715 $ 293,666 $ 5,882,259 $ 6,901,876 Deferred OPEB related items 358,602 575,263 - - 358,602 575,263 Total deferred inflows $ 5,891,146 $ 7,183,473 $ 349,715 $ 293,666 $ 6,240,861 $ 7,477,139 Net Position:

Net investment in capital assets $ 83,193,605 $ 83,177,722 $ 21,922,426 $ 22,443,932 $ 105,116,031 $ 105,621,654 Restricted 2,060,032 4,856,154 - - 2,060,032 4,856,154
Unrestricted (47,612,389) (48,226,357) (5,702,487) (7,598,760) (53,314,876) (55,825,117) Total net position $ 37,641,248 $ 39,807,519 $ 16,219,939 $ 14,845,172 $ 53,861,187 $ 54,652,691 Net Position (Summarized)
As of June 30, 2021 and 2020
Governmental Activities Business-Type Activities Total
11 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
City of Barstow Changes in Net position
2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for services $ 1,236,136 $ 1,327,757 $ 9,772,548 $ 7,530,388 $ 11,008,684 $ 8,858,145 Operating contributions and grants 757,387 859,437 - - 757,387 859,437 Capital contributions and grants 4,994,774 3,526,055 - 4, - 994,774 3,526,055 General Revenues:

Property taxes 9,796,572 9,252,006 - 9, - 796,572 9,252,006 Transient occupancy taxes 3,436,464 2,855,796 - 3, - 436,464 2,855,796 Sales taxes 16,387,048 13,527,079 - 16, - 387,048 13,527,079 Franchise taxes 1,175,996 1,077,373 - 1, - 175,996 1,077,373 Business license taxes 222,605 220,930 - - 222,605 220,930 Other taxes 55,188 64,808 - 55,188 - 64,808
Use of money and property 1,048,338 318,439 - 1, - 048,338 318,439 Other revenues 591,410 352,124 129,965 27,744 721,375 379,868 Total Revenues 39,701,918 33,381,804 9,902,513 7,558,132 49,604,431 40,939,936 Expenses:

General government 7,178,050 4,539,158 - 7, - 178,050 4,539,158 Public safety 22,274,486 23,887,685 - 22, - 274,486 23,887,685 Community development 1,835,249 2,959,442 - 1, - 835,249 2,959,442 Recreation 1,413,896 2,548,681 - 1, - 413,896 2,548,681 Public works 9,115,346 7,842,090 - 9, - 115,346 7,842,090 Interest on long-term debt 51,162 625 - 51,162 - 625
Wastewater Reclamation - 4,626,634 - 5,093,118 4,626,634 5,093,118 Solid Waste Disposal - 3,901,112 - 1,575,575 3,901,112 1,575,575 Total Expenses 41,868,189 41,777,681 8,527,746 6,668,693 50,395,935 48,446,374 Change in Net Position (2,166,271) (8,395,877) 1,374,767 889,439 (791,504) (7,506,438) Net position, beginning of year 39,807,519 48,203,396 14,845,172 13,955,733 54,652,691 62,159,129 Net postion, end of year $ 37,641,248 $ 39,807,519 $ 16,219,939 $14,845,172 $ 53,861,187 $ 54,652,691 Changes in Net Position
As of June 30, 2021 and 2020
Governmental Activities Business-Type Activities Total
The City of Barstow’s overall net position decreased by $0.8 million from the prior year. The reasons for this overall decrease are discussed in the following sections for governmental activities (a decrease of $2.2 million) and business-type activities (an increase of $1.4 million).

Governmental Activities
Governmental activities net position decreased by $2.2 million for fiscal year 2021 as shown in the chart above and the chart on page 11. This net decrease primarily resulted from increases in the City’s total assets of $3 million and increases in deferred outflows of $2.7 million for pension and OPEB contributions less an increase in the Net Pension Liability of $6.6 million and Net OPEB Liability of $1.3 million. As discussed in the notes, the City participates in a multi-employer cost sharing defined benefit pension plan.

More information about governmental activities are reflected in the charts and graphs on the following pages.
12 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Governmental Activities
Governmental Activities - Expenses and Program Revenues for FY 2020/21 Governmental Activities - Revenues by Source
13 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Business-type Activities
Business-type activities increased net position by $1.4 million as shown in the chart on page 13. The increase is directly a result of the reduction of the solid waste hauler rate subsidy. To stabilize Solid Waste’s financial condition, the City Council approved the elimination of the subsidy over a 3 year period; which will end in 2022 and in November 2020, the City brought the utility billing process in-house.

The chart below illustrates business-type expenses and revenues. The second chart on the following page shows Business-type revenues by source.

Business-Type Activities - Expenses and Program Revenues 14 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Business-Type Activities - Revenues by Source
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $12.9 million, an increase of $2.4 million or 22.1% when compared to the fund balances of the prior year. In fiscal year 2021, total governmental funds revenues exceeded expenditures by $2.2 million.

Further analysis discusses the underlying changes in the major government funds with major changes:

General Fund- During fiscal year 2021, there was an increase in fund balance of $3.8 million from the previous year. General Fund revenues were higher than anticipated due primarily to a strong rebound in total taxes collected as lockdowns related to the COVID-19 pandemic eased. Tax revenues increased by $3.7 million in total from the prior fiscal year. Other general fund revenues increased by $0.5 million in total. Expenditures were $1.0 million less than the prior fiscal year due primarily to budget austerity measures put in place during fiscal year 2020, including adoption of a two-year budget. These measures were put in place to proactively address potential impacts from the pandemic and remain in effect.

Operating
Grants &
Contributions
0%
Capital Grants
&
Contributions
0%
Charges for
Services
100%
15 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Measure I- The net change in fund balance was an increase of $399 thousand. This increase in fund balance reduced the accumulated fund deficit to $1.2 million. Based on the adopted deficit elimination plan, it is anticipated that the deficit will be eliminated during the next two fiscal years.

Barstow Fire Protection District- The net change in fund balance was an increase of $1.3 million. This increase in fund balance reduced the accumulated fund deficit to $5.0 million. The deficit relates to an interfund operating loan from the General Fund to the BFPD. A plan of repayment has been adopted including annual payments of $500 thousand which may be amended from time to time as warranted. Total revenues for the District, excluding transfers, increased by $700 thousand while total expenditures increased by $800 thousand.

The non-spendable portion of total governmental funds’ fund balances is $8.0 million. The City’s nonspendable fund balances are prepaid amounts that pertain to another accounting period, inventories, assets that are not in cash form and deposits that are liabilities. As of June 30, 2021, the major amounts designated as non-spendable were loans from the following funds:
 $1.7 million due from the Measure I Special Revenue Fund  $0.3 million Wastewater Reclamation Fund loans
 $5.3 million Barstow Fire Protection District loan
Other non-spendable items included deposits and prepaids.

Restricted funds constitute $2.1 million of the total governmental funds fund balance.  In fiscal year 2013, the City entered into an agreement with the California Statewide Communities Development Authority Total Road Improvement Program (TRIP) to finance extensive local street improvements and reconstruction. TRIP funds are pledged against future Measure I funding to serve as the source for the related debt. The projects were identified through the City’s Pavement Management System as meeting the Measure I Strategic Plan. Included as a restricted amount is $1.1 million for debt service as part of the Total Road Improvement Program (TRIP) financing.

The TRIP debt was paid off in fiscal year 2021 using the restricted debt reserve and $383 thousand in cash, freeing up over $1.0 million in funding in future years.  The Housing Successor Agency Trust Fund constitutes $440 thousand of the restricted fund balance.
 The remaining of $0.8 million is related to various Capital Projects.

Assigned fund balance accounts for $4.4 million of fund balance and is comprised of working capital ($3.6 million) and emergency reserves ($0.9 million).

Unassigned fund balance in the General Fund constitutes approximately $5.2 million as of the end of the fiscal year which is available for spending at the government’s discretion. For all governmental funds, the unassigned fund balance as of the fiscal year end is a $1.6 million deficit. This is primarily due to the advance between the BFPD and the General Fund.

More details about the fund balance for governmental funds can be found on page 87. 16 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Proprietary Funds
At year-end, the total net position of all proprietary funds was $16.2 million, which was an increase of $1.4 million or 9.3% over the previous fiscal year. Details for the change are discussed below.  The Wastewater Fund had an increase in net position of $949 thousand. The increase is primarily due to the increased monitoring of industrial discharge flow and rate increases for inflation.  Solid Waste had a change in net position of $426 thousand due to a decrease in the hauler subsidy.

This change in net position reduced the fund deficit to $236 thousand.

Additional information can be found on pages 38-40 of this report.

GENERAL FUND BUDGETARY HIGHLIGHTS
The fiscal 2021 year-end actual revenues of $29.9 million exceeded budgeted estimated revenues of $24.9 million by $5.0 million. The City implemented austerity measures in response to the COVID-19 pandemic and subsequent lockdown for an unknown duration. As the lockdowns imposed due to the pandemic have been lifted and travel restrictions have eased, the City has benefited from increases in revenues sensitive to transient travel. Primarily, the City’s sales taxes and transient occupancy taxes have increased significantly as pandemic restrictions were lifted. Sales tax collections have increased by $1.4 million from the prior fiscal year to $7.55 million. Measure Q sales tax collections have also increased by $1.4 million to $8.85 million. Transient occupancy tax collections increased by $635 thousand from the prior fiscal year. Property Taxes also increased by $218 thousand. Collections from various franchise taxes also increased by $100 thousand during the fiscal year.

Actual total General Fund revenues had a positive or favorable variance in the amount of $4.99 million or

12.9%. The total General Fund expenditures also ended the fiscal year with a positive or favorable variance coming in under budget by $542 thousand or 2.0%. Attrition savings due to vacancies and retirements accounted for the majority of the savings in the General Fund.

CAPITAL ASSET AND DEBT ADMINISTRATION
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $106.8 million (net of accumulated depreciation). This investment in capital assets includes land, building and system improvements, machinery and equipment and park facilities. The total change in the City’s investment in capital assets for the current fiscal year, when compared to the previous year’s capital assets, was a decrease of 1.6% or $1.75 million. Changes from the prior year are discussed below and the City of Barstow’s Capital Assets chart on the next page. The analysis is detailed below:

Increases in Capital Assets for Governmental Activities & Decreases in Business-type Activities:

Governmental Activities had a net decrease in capital assets of $925 thousand from the previous fiscal year due mainly to the following: a net increase in Work in Progress of $3.2 million; a net decrease of $3.1 million in Infrastructure, a decrease of $862 thousand for Buildings & Improvements, a decrease of $98 thousand in land and a net decrease in Machinery & Equipment of $112 thousand. 17 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Business-type Activities had an overall decrease of $823 thousand from fiscal year 2020. This decrease was primarily due to a $698 thousand decrease in Infrastructure and a $135 thousand decrease in Machinery & Equipment from the prior fiscal year.

City of Barstow’s Capital Assets
(Net of Depreciation)
2021 2020 2021 2020 2021 2020
Land & Intangible Assets $ 9,787,484 $ 9,885,485 $ 1,657,637 $ 1,657,637 $ 11,445,121 $ 11,543,122 Work in progress 13,361,468 10,154,019 237,741 206,403 13,599,209 10,360,422 Buildings & Improvements 9,665,376 10,527,143 88,796 95,215 9,754,172 10,622,358 Machinery and equipment 1,398,390 1,510,231 1,476,503 1,611,301 2,874,893 3,121,532 Property Under Capital Lease 1,019,184 982,744 88,323 104,763 1,107,507 1,087,507 Infrastructure 49,555,927 52,653,084 18,420,483 19,118,104 67,976,410 71,771,188 Total $ 84,787,829 $ 85,712,706 $ 21,969,483 $ 22,793,423 $ 106,757,312 $ 108,506,129 Governmental Activities Business-Type Activities Total
Additional information on the City’s capital assets can be found in Note 5 of the “Notes to Basic Financial Statements” on pages 61-62 of this report.

Long-term Debt
At the end of the current fiscal year, the City of Barstow had total debt outstanding of $12.5 million. Of this debt amount, governmental activities accounts for $6.8 million, and $5.7 million is related to businesstype activities. The City has no general obligation bonded debt or tax allocation bonded debt outstanding.

City of Barstow’s Outstanding Debt
In total, debt decreased, by $256 thousand. However, although the City actively works to reduce claims and judgements with professional risk managers, Claims & Judgments increased by $753 thousand during the fiscal year. Capital lease agreement obligations increased by $265 thousand and debt for compensated absences increased by $251 thousand. Pollution remediation expenses in the Soapmine Road area reduced the related liability by $17 thousand. Also, the City of Barstow had an agreement with the California Statewide Communities Development Authority Total Road Improvement Program (TRIP) to finance extensive local street improvements and reconstruction that were identified throughout the City. This 2021 2020 2021 2020 Total 2021 Total 2020
Measure I-TRIP COP $ 1,507,750 - $ $ - $ - $ 1,507,750 - $ Capital Lease Agreement 1,594,224 1,027,234 47,057 349,491 1,641,281 1,376,725 Pollution Remediation Liability - 5,468,992 - 5,486,099 5,468,992 5,486,099 Claims & Judgments Payable 3,363,065 2,610,138 - 3,363,065 - 2,610,138 Compensated Absences 1,856,949 1,567,956 136,907 174,733 1,993,856 1,742,689 Total $ 6,814,238 $ 6,713,078 $ 5,652,956 $ 6,010,323 $ 12,467,194 $ 12,723,401 Governmental Activities Business-Type Activities Total
18 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
additional capital was used as part of the road and street reconstruction projects. These projects are now complete. The City pledged Measure I funding to serve as the source for the related debt services payments.

The final payment for the TRIP financing agreement was made in FY 2020-21.

Additional information on the City’s long-term debt can be found in Note 6 on pages 63- 64 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The economy continues to be at the forefront of management’s consideration in leading and providing services for the residents of the City of Barstow. The management team continuously takes the necessary steps required to address the needs of its residents for the short-term and the long-term, focusing on needed infrastructure improvements, community services including recreation and activities for all ages, business and economic development, and planning for long-term growth in conjunction with the City Council.

When the coronavirus epidemic began, no one knew what the impacts would be or how long it would last.

The City was proactive in its attempts to manage the impacts on the City organization and provision of services. The City adopted a two-year budget for FY21 and 22. This budget included reductions in revenue projections of $2.8m and reductions in appropriations of $2.3m. Budgetary actions included a freeze in wages and certain benefits for two years, a reduction in force of 7.5 FTEs, elimination of 4 vacant funded positions, temporary elimination of recreation programs, and closure of recreation facilities. Further, all financial activity is continually monitored to ensure resources and expenses are in-line with budgeted projections. The budget amendments and continual budget monitoring are necessary and vital to the City’s efforts to manage pandemic impacts.

As the imposed lockdown and other travel restrictions due to the epidemic eased, increased transient travel had an unanticipated positive impact on the City’s key revenue sources. Sales tax revenues received were $2.8 million higher than projected and Transient Occupancy Taxes were $635,000 higher than projected.

All told, the City received over $5.0 million in revenues more than what was projected in the amended budget. Expenditures for the year were $542,000 below the amended budget.

These revenue increases have been assisted by the diversity of the City’s tax base. In particular, between the Outlets at Barstow, the number of hotels in the Lenwood area, surrounding restaurants and four truck stops representing all four major chains, 38% of the City’s revenues are generated from transient travelers through the community. Barstow is located at the juncture of the I-40 and I-15 freeways. As such, freeway traffic through the community has been a tremendous source of revenue.

The City has also received federal stimulus funding through the CDBG program, JAG grant, CARES grant, and ARPA federal stimulus programs which has greatly assisted with the economic recovery from impacts due to the pandemic. These funds are recorded in Special Revenue funds outside of the City’s General Fund.

Through the Community Development Block Grant (CDBG) program, the City received $15,800 for a testing event project.
19 CITY OF BARSTOW
Management’s Discussion and Analysis
June 30, 2021
Through the Justice Assistance Grant (JAG) program, the City received a reimbursement grant award in the amount of $71,392. To date, the City has received $34,261 of the total grant award. The remaining amount of the grant will be received during the next fiscal year.

Through the Coronavirus Aid, Relief, and Economic Security (CARES) program, the City was awarded $898,920. To date, the City has received $881,800 of the total grant award in FY21. The remaining $17,000 will be received in the next fiscal year.

Through the American Rescue Plan Act (ARPA), the City was awarded $5,720,976. The first tranche of $2,860,488, representing 50% of the funding, was received in July, 2021. The second half of the funding will be received by the City in July 2022.

The City has also approved construction of a Marriott hotel project in the Lenwood area of Barstow along Interstate I5 freeway. The project includes constructing two hotels totaling 181 rooms using an innovative shared footprint design. The two hotels are a Fairfield Inn (short term stay) and a Towne Place Suites (long term stay). The hotels are currently under construction and expected to open in Fall 2022. The hotels are located close to the Outlet mall and conservatively will add over $1 million annually in new revenues.

The City recently approved creation of a “green zone” and are beginning to take applications as of December 1, 2021 with the anticipated issuance of permits in January 2022. Based upon a Cannabis fee study completed for the City, expected new revenues during the next fiscal year will exceed $250,000.

Thereafter, the City will receive over $70,000 annually in regulatory fees plus 3% of gross sales (above the City’s existing 2%) per approved development agreements. The new revenues from the Cannabis manufacturing and retails sales are expected to be significantly more than $500 thousand annually.

The City’s executive management team continues its commitment to improving the infrastructure for its residents. This is evidenced by the continued projects such as: First Avenue Bridge over Burlington Northern Santa Fe (BNSF), the North First Avenue Bridge over the Mojave River, and West Section 7.

The unemployment rate for the City of Barstow as of June, 2021 was 8.0%. This represents a decrease of

4.1% from the June 2020 rate of 12.1%. An improved local economy is reflected in the increases in transient occupancy tax and sales tax collections. The City’s Economic Development team is actively working to assist local businesses to withstand the economic impacts of the COVID-19 pandemic. The City also demonstrates its “pro-business” outlook by its willingness to work with prospective employers and new businesses interested in locating in Barstow.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 220 E. Mountain View Street, Suite A, Barstow, California 92311. 20 GENERAL PURPOSE

FINANCIAL STATEMENTS
21 THIS PAGE INTENTIONALLY LEFT BLANK
22 CITY OF BARSTOW

STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments $ 2,162,566 9,723,367 $ 11,885,933 $ Receivables:

Accounts 1,929,769 1,119,405 3,049,174
Taxes 63,662 - 63,662
Accrued interest 3,715 622 4,337
Internal balances 283,671 (283,671) -
Prepaid costs 43,840 1,513 45,353
Deposits 591,564 - 591,564
Due from other governments 4,925,605 - 4,925,605
Inventories 66,692 - 66,692
Capital assets not being depreciated 23,148,952 1,895,378 25,044,330 Capital assets, net of depreciation 61,638,877 20,074,105 81,712,982 Total Assets 102,419,714 24,969,918 127,389,632
Deferred Outflows of Resources:

Deferred employer pension contributions 5,136,925 297,811 5,434,736 Deferred outflows of resources-pension 11,431,982 468,793 11,900,775 Deferred contributions-OPEB 885,238 - 885,238
Deferred outflows of resources-OPEB 2,053,819 - 2,053,819 Total Deferred Outflows
of Resources 19,507,964 766,604 20,274,568
Liabilities:

Accounts payable 1,220,773 728,984 1,949,757
Accrued liabilities 1,708,794 109,405 1,818,199
Unearned revenue 329,281 - 329,281
Deposits payable 42,625 39,516 82,141
Due to other governments 50,575 - 50,575
Retentions payable 97,010 - 97,010
Noncurrent liabilities:

Due within one year
Long-term debt 378,488 30,086 408,574
Compensated absences 742,780 54,763 797,543
Claims and judgements 696,842 - 696,842
Pollution remediation liability - 51,500 51,500
Due in more than one year
Long-term debt 1,215,736 16,971 1,232,707
Compensated absences 1,114,169 82,144 1,196,313
Claims and judgements 2,666,223 - 2,666,223
Pollution remediation liability - 5,417,492 5,417,492
Net Pension Liability 44,006,891 2,636,007 46,642,898
Net OPEB Liability 24,125,097 - 24,125,097
Total Liabilities 78,395,284 9,166,868 87,562,152
Deferred Inflows of Resources:

Deferred inflows of resources-pension 5,532,544 349,715 5,882,259 Deferred inflows of resources-OPEB 358,602 - 358,602
Total Deferred Inflows
of Resources 5,891,146 349,715 6,240,861
Net Position:

Net investment in capital assets 83,193,605 21,922,426 105,116,031 Restricted for:

Public safety 22,286 - 22,286
Parks and recreation 730 - 730
Capital projects 807,489 - 807,489
Low and Moderate Income 442,902 - 442,902
Streets and Highways 776,153 - 776,153
Other purposes 10,472 - 10,472
Unrestricted (47,612,389) (5,702,487) (53,314,876)
Total Net Position $ 37,641,248 $ 16,219,939 $ 53,861,187 JUNE 30, 2021
Primary Government
See Notes to Financial Statements.
23 CITY OF BARSTOW

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:

Governmental Activities:

General government $ 7,178,050 $ 91,550 $ 18,961 $ 875,019 Public safety 22,274,486 498,522 734,619 71,467
Community development 1,835,249 600,696 375 54,302
Recreation 1,413,896 42,506 - 2,354
Public works 9,115,346 2,862 3,432 3,991,632
Interest on long-term debt 51,162 - - -
Total Governmental Activities 41,868,189 1,236,136 757,387 4,994,774 Business-Type Activities:

Wastewater Reclamation 4,626,634 5,564,001 - -
Solid Waste Disposal 3,901,112 4,208,547 - -
Total Business-Type Activities 8,527,746 9,772,548 - -
Total Primary Government $ 50,395,935 $ 11,008,684 $ 757,387 $ 4,994,774 General Revenues:

Taxes:

Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Other taxes
Use of money and property
Other
Total General Revenues
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
Program Revenues
See Notes to Financial Statements.
24 Primary Government
Governmental Business-Type
Activities Activities Total
$ - (6,192,520) $ (6, $ 192,520)
(20,969,878) - (20,969,878)
(1,179,876) - (1,179,876)
(1,369,036) - (1,369,036)
(5,117,420) - (5,117,420)
(51,162) - (51,162)
(34,879,892) - (34,879,892)
- 937,367 937,367
- 307,435 307,435
- 1,244,802 1,244,802
(34,879,892) 1,244,802 (33,635,090)
9,796,572 - 9,796,572
3,436,464 - 3,436,464
16,387,048 - 16,387,048
1,175,996 - 1,175,996
222,605 - 222,605
55,188 - 55,188
1,048,338 - 1,048,338
591,410 129,965 721,375
32,713,621 129,965 32,843,586
(2,166,271) 1,374,767 (791,504)
39,807,519 14,845,172 54,652,691
$ 16,219,939 37,641,248 $ 53,861,187 $
Net (Expenses) Revenues
and Changes in Net Position
See Notes to Financial Statements.
25 THIS PAGE INTENTIONALLY LEFT BLANK
26 )81'
),1$1&,$/67$7(0(176
Governmental Funds Financial Statements
Enterprise Funds Financial Statements
Fiduciary Funds Financial Statements
27 THIS PAGE INTENTIONALLY LEFT BLANK
28 *29(510(17$/)81'),1$1&,$/67$7(0(176
General Fund LVWKHJHQHUDORSHUDWLQJIXQGRIWKH&LW\,WLVXVHGWRDFFRXQWIRUDOOILQDQFLDOUHVRXUFHV H[FHSWWKRVHUHTXLUHGWREHDFFRXQWHGIRULQDQRWKHUIXQG The Measure I Special Revenue Fund LVXVHGWRDFFRXQWIRUPRQH\JHQHUDWHGE\DRQHKDOISHUFHQW VDOHV WD[ DSSURYHG E\ WKH YRWHUV LQ 

 WKURXJK  ,Q  6DQ %HUQDUGLQR &RXQW\ YRWHUV DSSURYHGWKH H[WHQVLRQRI0HDVXUH,VDOHVWD[WKURXJK The Barstow Fire Protection District Special Revenue Fund DFFRXQWV IRU RSHUDWLRQV RI WKH %DUVWRZ)LUH3URWHFWLRQ'LVWULFW
Grants Special Revenue Fund LV XVHGWR DFFRXQWIRU UHFHLSWV DQG H[SHQGLWXUHV RIPRQH\ UHFHLYHG IURP YDULRXVJRYHUQPHQWDOJUDQWV
The City Capital Projects Fund DFFRXQWVIRUWUDQVDFWLRQV UHODWHGWR SURFHHGVIURP ERQGV DQG RWKHU UHVRXUFHVDQGWKHLUXVHWRDFTXLUHDQGFRQVWUXFWFHUWDLQFDSLWDOIDFLOLWLHV Non-Major Governmental Funds LVWKHDJJUHJDWHRIDOOWKHQRQPDMRUJRYHUQPHQWDOIXQGV 29 CITY OF BARSTOW

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
General
Assets:

Pooled cash and investments $ 5,978,552 $ 191,363 $ 738,511 $ 554,931 Receivables:

Accounts 251,786 506,917 26,549 984,864
Taxes - - - -
Accrued interest 1,557 65 427 230
Prepaid costs 43,240 - 600 -
Deposits - 591,564 - -
Due from other governments 4,925,605 - - -
Due from other funds 924,442 - - -
Advances to other funds 7,301,063 - - -
Inventories - 66,692 - -
Total Assets 20,084,501 $ 698,345 $ 766,087 $ 1,540,025 $ Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 645,905 $ 54,937 $ 199,286 $ 93,462
Accrued liabilities 1,410,055 - 298,739 -
Unearned revenues - - - 299,625
Deposits payable 42,625 - - -
Due to other governments 50,575 - - -
Due to other funds - - - 838,951
Advances from other funds 1,700,000 - 5,317,392 -
Retentions payable - - - -
Total Liabilities 2,149,160 1,754,937 5,815,417 1,232,038 Deferred Inflows of resources:

Unavailable revenues 276,187 162,318 - 799,356
Total Deferred Inflows of Resources 276,187 162,318 - 799,356 Fund Balances:

Nonspendable:

Nonspendable 8,002,559 - - -
Restricted - - - -
Assigned - 4,438,404 - -
Unassigned (1,218,910) 5,218,191 (5, ( 049,330) 491,369) Total Fund Balances 17,659,154 (1,218,910) (5, ( 049,330) 491,369) Total Liabilities, Deferred inflows of
Resources, and Fund Balances 20,084,501 $ 698,345 $ 766,087 $ 1,540,025 $ Measure I
Barstow Fire
Protection
District Grants
Special Revenue Funds
See Notes to Financial Statements.
30 CITY OF BARSTOW

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Retentions payable
Total Liabilities
Deferred Inflows of resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred inflows of
Resources, and Fund Balances

Capital
Projects Funds
Other Total
Governmental Governmental
Funds Funds
$ 1,352,442 907,568 $ 9,723,367 $
159,653 - 1,929,769
63,662 - 63,662
1,006 430 3,715
- - 43,840
- - 591,564
- - 4,925,605
- - 924,442
- - 7,301,063
- - 66,692
$ 1,576,763 907,998 $ 25,573,719 $
$ 223,684 3,499 $ 1,220,773 $
- - 1,708,794
29,656 - 329,281
- - 42,625
- - 50,575
85,491 - 924,442
- - 7,017,392
- 97,010 97,010
338,831 100,509 11,390,892
10,321 - 1,248,182
10,321 - 1,248,182
- - 8,002,559
1,252,543 807,489 2,060,032
- - 4,438,404
(24,932) - (1,566,350)
1,227,611 807,489 12,934,645
$ 1,576,763 907,998 $ 25,573,719 $
City Capital
Projects
See Notes to Financial Statements.
31 THIS PAGE INTENTIONALLY LEFT BLANK
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38 CITY OF BARSTOW

STATEMENT OF REVENUES, EXPENSES

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Totals
Operating Revenues:

Sales and service charges $ 4,208,547 5,564,001 $ $ 9,772,548 Miscellaneous 11,199 118,766 129,965
Total Operating Revenues 5,575,200 4,327,313 9,902,513
Operating Expenses:

Administration and general 2,022,097 304,737 2,326,834
Cost of services 1,487,175 3,559,560 5,046,735
Claims expense 147,910 13,459 161,369
Depreciation expense 951,307 22,190 973,497
Total Operating Expenses 4,608,489 3,899,946 8,508,435
Operating Income (Loss) 966,711 427,367 1,394,078
Nonoperating Revenues (Expenses):

Interest expense (17,562) (1,166) (18,728)
Gain (loss) on disposal of capital assets (583) - (583) Total Nonoperating
Revenues (Expenses) (18,145) (1,166) (19,311)
Changes in Net Position 948,566 426,201 1,374,767
Net Position:

Beginning of Year 15,507,791 (662,619) 14,845,172
End of Fiscal Year $ (236,418) 16,456,357 $ 16,219,939 $ Business-Type Activities - Enterprise Funds
Wastewater
Reclamation
Solid Waste
Disposal
See Notes to Financial Statements.
39 CITY OF BARSTOW

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Totals
Cash Flows from Operating Activities:

Cash received from customers and users $ 3,826,837 5,671,298 $ $ 9,498,135 Cash paid to suppliers for goods and services (1,586,671) (3,139,408) (4,726,079) Cash paid to employees for services (1,425,489) (175,397) (1,600,886) Cash received from others 11,199 118,766 129,965
Net Cash Provided (Used) by Operating Activities 2,670,337 630,798 3,301,135 Cash Flows from Non-Capital
Financing Activities:

Repayments made to other funds (190,516) (530,342) (720,858) Net Cash Provided (Used) by
Non-Capital Financing Activities (190,516) (530,342) (720,858) Cash Flows from Capital
and Related Financing Activities:

Acquisition and construction of capital assets (150,140) - (150,140) Principal paid on capital debt (319,541) - (319,541)
Interest paid on capital debt (17,562) - (17,562)
Net Cash Provided (Used) by
Capital and Related Financing Activities (487,243) - (487,243) Cash Flows from Investing Activities:

Loss on investment - (1,166) (1,166)
Net Cash Provided (Used) by
Investing Activities - (1,166) (1,166)
Net Increase (Decrease) in Cash
and Cash Equivalents 1,992,578 99,290 2,091,868
Cash and Cash Equivalents at Beginning of Year 70,698 - 70,698 Cash and Cash Equivalents at End of Year $ 2,063,276 $ 99,290 $ 2,162,566 Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) $ 427,367 966,711 $ 1, $ 394,078 Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Depreciation 951,307 22,190 973,497
(Increase) decrease in accounts receivable 107,297 (337,688) (230,391) (Increase) decrease in prepaid expense (849) (664) (1,513) (Increase) decrease in deferred employer contributions (66,657) (20,966) (87,623) (Increase) decrease in deferred outflows of resources - pension (33,496) (17,675) (51,171) Increase (decrease) in accounts payable and accrued liabilities 84,017 398,349 482,366 Increase (decrease) in deposits payable - (44,022) (44,022) Increase (decrease) in net pension liability 649,369 198,322 847,691 Increase (decrease) in deferred inflows of resources - pension 39,705 16,344 56,049 Increase (decrease) in compensated absences (27,067) (10,759) (37,826) Total Adjustments 1,703,626 203,431 1,907,057
Net Cash Provided (Used) by
Operating Activities $ 630,798 2,670,337 $ 3, $ 301,135 Non-Cash Investing, Capital, and Financing Activities:

Gain/(Loss) on disposal of capital assets (583) - (583) Business-Type Activities - Enterprise Funds
Wastewater
Reclamation
Solid Waste
Disposal
See Notes to Financial Statements.
40 ),'8&,$5<)81'),1$1&,$/67$7(0(176
41 CITY OF BARSTOW, CALIFORNIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021
Custodial
Funds
Assets:

Cash and investments (Note 3) $ 226,503 $ 834,185
Receivables:

Accounts 17 -
Taxes - 26,000
Accrued interest receivable 129 153
Due from other governments - 45,461
Land held for resale - 2,224,905
Total Assets 226,649 3,130,704
Liabilities:

Accounts payable 58,128 -
Accrued interest - 24,728
Bonds payable (Note 8)
Due in one year - 780,000
Due in more than one year - 815,000
Total Liabilities 58,128 1,619,728
Net Position:

Held in trust for other purposes 168,521 1,510,976
Total Net Position $ 168,521 $ 1,510,976
Private-Purpose
Trust Fund
See Accompanying Notes to Financial Statements.
42 CITY OF BARSTOW, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Additions:

Collections for assessment districts $ 22,129 $ -
Intergovernmental - 891,548
Interest and change in fair value of investments 456 (627) Total Additions 22,585 890,921
Deductions:

Administrative expenses 59,031 55,029
Contractual services 6,050 -
Interest expense - 86,691
Total Deductions 65,081 141,720
Net Increase in Fiduciary Net Position (42,496) 749,201 Net Position - Beginning - 761,775
Restatement of Net Position (Note 16) 211,017 -
Net Position - Beginning, as Restated 211,017 761,775
Net Position - Ending $ 168,521 $ 1,510,976
PrivatePurpose Trust
Fund
Custodial
Funds
See Accompanying Notes to Financial Statements.
43 THIS PAGE INTENTIONALLY LEFT BLANK
44 FOOTNOTE DISCLOSURES
45 THIS PAGE INTENTIONALLY LEFT BLANK
46 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies
The basic financial statements of the City of Barstow California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
a. Financial Reporting Entity
The City of Barstow (City) was incorporated on September 30, 1947, under the general laws of the State of California. The City operates under a council-manager form of government and provides the following services: park and recreation, public safety (police and fire), highways and streets, public improvements, planning and zoning, and general administrative services.

The accompanying financial statements include the financial activities of the City, and its component units, the Barstow Public Financing Authority, the Barstow Public Facilities Corporation, the Odessa Water District, the Barstow Harvey House Foundation, Barstow Community Services Foundation, and the Barstow Fire Protection District.

Financial information for the City and these components are accounted for in the accompanying financial statements in accordance with principles defining the governmental reporting entity adopted by the Governmental Accounting Standards Board. The City Council serves as the governing board of these component units and, as such, these entities are presented on a blended basis:

The Barstow Public Facilities Corporation (the Facilities Corporation) was established on September 21, 1989, to render financial assistance to the City by financing, refinancing, acquiring, constructing, improving, leasing, selling or otherwise conveying property of any kind to the City. The City Council acts as the Corporation’s governing board and exerts significant influence over its operations.

The City is responsible for the Facilities Corporation’s obligations. Separate financial statements are not produced for the Facilities Corporation.

The Odessa Water District (Odessa) was established on July 5, 1993, pursuant to legislation approved by the State in 1991 to provide water resources to the City. The City Council acts as the District’s governing board and exerts significant influence over its operations. The City is responsible for Odessa’s obligations. Separate financial statements are produced for the District and may be obtained from the City’s Finance Administration Office.

The Barstow Harvey House Foundation (the Foundation) is a nonprofit public benefit corporation established on January 16, 1992, to promote development of the Harvey House historic site, to improve, renovate, and maintain the historic significance of the site. The City Council acts as the Foundation’s governing board and exerts significant influence over its operations. The City is responsible for the Foundation’s obligations. Separate financial statements are not produced for the Foundation.
47 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) The Barstow Community Services Foundation (the Community Services Foundation) was formed on October 7, 2013 as a non-profit public benefit corporation. The Community Services Foundation will receive, invest and utilize funds and property acquired through the solicitation of contributions, donations, grants, gifts, bequests for the purposes of fostering and promoting community interests, events, and programs promoting and celebrating Barstow, its history and contributions, and any other purpose beneficial to the public. The City Council acts as the Community Services Foundation’s governing board and exerts significant influence over its operations.

The City is responsible for the Community Services Foundation’s obligations.

Separate financial statements for the Community Services Foundation are not produced.

The Barstow Fire Protection District (the District) became a component unit of the City on November 17, 2010. Previously the District was an independent district. The District will continue to be operated according to the applicable state fire protection district laws and the property taxes collected within the district will be used exclusively for the administration and operational costs of the district. The City Council acts as the District’s governing board and exerts significant influence over its operations.

Separate financial statements are produced for the District and may be obtained from the City’s Finance Office.
b. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These statements are presented on an economic resource’s measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses recognized in the period in which the liability is incurred. Grant revenues are recognized when all eligibility requirements imposed by the provider have been met. The types of transactions reported as program revenues for the City are reported in three categories:
1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.
48 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Certain eliminations have been made as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34 in regard to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities.

Governmental Fund Financial Statements
Governmental funds financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the government-wide financial statements.

The City of Barstow reports the following major governmental funds:
 The General fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.  The Measure I fund is used to account for money generated by a one-half percent sales tax approved by the voters in 1989 and extended in 2004 by the San Bernardino County voters to continue until 2040. The fund is also used to account for the debt proceeds and related expenditures of the California Communities Local Measure I Sales Tax Revenue Certificates of Participation, Series 2012.  The Barstow Fire Protection District Special Revenue fund accounts for operations of the Barstow Fire Protection District which was annexed to the City effective November 17, 2010. The District’s main source of revenue is through the collection of property taxes. This constitutes approximately 91% of its revenue source for fiscal year 2020. Minor sources of revenue are fees for permits, plan and specification review, and grants.
 The Grants fund accounts for transactions related to proceeds from grants restricted for various purposes specified in the respective grant agreements.  The City Capital Projects Fund accounts for transactions related to proceeds from bonds and other resources and their use to acquire and construct certain capital facilities.

All governmental funds are accounted for on a spending or current financial resources measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The statement of revenues, expenditures and changes in fund balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally received within 90 days after year-end). The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. 49 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Enterprise Fund Financial Statements
Enterprise fund financial statements include a statement of net position, a statement of revenues, expenses and changes in fund net position, and a statement of cash flows for each major enterprise fund and nonmajor funds aggregated.

The City of Barstow reports one major enterprise fund:
 The Wastewater Reclamation Fund accounts for the operation of the wastewater system. The City and its employees operate the wastewater system and plant.

In addition, the City reports one non- major enterprise fund:
 The Solid Waste Disposal Fund is used to account for the operation of the Solid Waste (trash) utility, a self-supporting activity which renders services on a user charge basis to residents and businesses located in the Barstow area.

Enterprise funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or non-current) are included on the statement of net position. The statement of revenues, expenses and changes in fund net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary assets and liabilities, and a statement of changes in fiduciary net position. The City's fiduciary funds represent agency funds and a private-purpose trust fund. Agency funds are custodial in nature (statement of fiduciary assets and liabilities) and do not involve measurement of results of operations. Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). Private-purpose trust funds are accounted for on the accrual basis of accounting.

The City reports the following fiduciary funds:
 Custodial Funds – account for receipt of special taxes and assessments used to pay principal and interest on related bonds with no direct City liability. Agency funds are also used to account for developer deposits and other small funds for the benefit of other agencies.
 Successor Agency Private Purpose Trust Fund – accounts for assets and liabilities of the Successor Agency Trust Fund.
50 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) c. Cash and Investments
The City pools idle cash from all funds for the purpose of increasing income through investment activities. In compliance with Governmental Accounting Standards Board Statement No. 31, the City's investments are stated at fair value. Fair market value is used for those securities for which market quotations are readily available. For securities that lack readily available market quotations, reasonable estimates of fair value are used based on the market value of similar investments. The City generally holds all investments until maturity or until market values equal or exceed cost. Therefore, the fair value of securities in the investment pool does not necessarily reflect realized gains or losses but rather the fair value of those investments as of June 30, 2021. d. Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considered all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All pooled cash and investments of the enterprise funds are considered cash equivalents.
e. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
f. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year 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 non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds."
Advances to other funds, as reported in the fund financial statements, are offset by a non-spendable fund balance.

Governmental fund and enterprise fund receivables are shown net of an allowance for uncollectible amounts. Residential utility customers are billed bi-monthly on an alternating basis. Commercial and multi-family customers are billed monthly.

Property taxes are assessed, collected and allocated by San Bernardino County throughout the fiscal year according to the following property tax calendar:

Lien Date January 1
Levy Date July 1 to June 30
Due Dates November 1, 1st Installment
February 1, 2nd Installment
Delinquent Dates December 11, 1st Installment April 11, 2nd Installment
51 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) City property tax revenues are recognized when levied to the extent that they result in current receivables. The City elected to participate in the County of San Bernardino Teeter Plan guaranteed payment as of June 30, 1993.

The County of San Bernardino collects an administration fee from the City for its services. The City receives a percentage of the basic 1% ad valorem tax rate allowed on property within the City of Barstow. Property tax rates for the City's general obligation debt are set by the City Council based on assessed valuations and debt service requirements. The assessed valuation is at "full cash value." g. Inventories and Prepayments
Inventory is valued at cost using the first in, first out method. The City uses the consumption method of accounting for inventories. Certain types of goods and services such as payments to vendors and pension costs are paid in advance and reflect costs applicable to future accounting periods and are recorded as prepaid items. h. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first. i. Capital Assets
The City’s buildings, machinery, equipment, infrastructure and intangible assets with useful lives of more than two years are stated at historical cost or estimated historical cost and reported in the government-wide financial statements. Enterprise capital assets are also reported in their respective fund financial statements. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The City updated its Capital Asset Policy on June 16, 2014 per Council approval. The City capitalizes its assets as follows:

Buildings and Building Improvements Costs of $50,000 or more Furniture Costs of $10,000 or more
Equipment Costs of $20,000 or more
Infrastructure Costs of $100,000 or more
The costs of normal maintenance and repairs that do not add to the asset value or materially extend useful lives are not capitalized. Capital assets are depreciated using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recorded in operations. Amortization of assets acquired under capital leases is based on the shorter of the lease term or the estimated useful life of the asset and is included in depreciation and amortization. Water rights, which are intangible assets, are not amortized. Estimated useful lives, in years, for depreciable assets are as follows:

Buildings 50 years
Infrastructure and improvements other than buildings 10-100 years Machinery and equipment 3-15 years
52 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) j. Compensated Absence Payable
Under certain circumstances and according to negotiated labor agreements, employees of the City are allowed to accumulate vacation leave, compensation time, and sick leave.

This amount is included as a liability in the government-wide and enterprise fund financial statements.
k. Long-Term Obligations
In the government-wide financial statements and enterprise 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 enterprise fund type statement of net position.
l. Net Position and Fund Equity
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets: This category groups all capital assets into one component of net position. Accumulated depreciation on these assets and the outstanding principal of related debt reduce this category.

Restricted Net Position: This category represents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position: This category represents the net position of the City that are not externally restricted for any project or other purpose.

In the fund financial statements, governmental funds are classified in the following categories:

Non-spendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories, prepaid amounts, and long- term notes receivable.

Restricted Fund Balance – includes amounts that are restricted for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – is the portion of fund balance that can only be used for specific purpose due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. No amounts have been reported within this category of fund balance.

Assigned Fund Balance – includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by (a) City Council or (b) a body (a budget, finance committee, or management 53 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) (City Wide Leadership team, which consists of City Manager and Executive Department Heads)) to which the assigned amounts are to be used for specific purposes. Assigned amounts also include all residual amounts in governmental funds (except negative amounts) other than the General Fund, that are not classified as non-spendable, restricted, or committed.

Unassigned Fund Balance – the residual classification for the General Fund and includes all not contained in the other classifications. Governmental funds report residual negative balances as unassigned fund balance.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.
m. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

In addition to liabilities, the statement of net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
n. Pension
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 Employees’ Retirement System (CalPERS) plan and San Bernardino County Employees’ Retirement Association (SBCERA) plan (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and SBCERA. 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. o. 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 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, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
54 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Valuation Date July 1, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
p. New Pronouncements
During the fiscal year ended June 30, 2021, the City implemented the following GASB standards:

GASB Statement No. 84 – Fiduciary Activities The requirements of this Statement will enhance consistency and comparability by (1) establishing specific criteria for identifying activities that should be reported as fiduciary activities and (2) clarifying whether and how business-type activities should report their fiduciary activities. Greater consistency and comparability enhances the value provided by the information reported in financial statements for assessing government accountability and stewardship. The result of implementing this standard resulted in the inclusion of financial information formerly reported as “agency funds” in prior years within the General Fund. Additionally, Funds previously reported as agency funds are now reported as custodial funds. The implementation of this financial information resulted in prior period adjustments of $211,017, refer to note 14 for additional information.

Note 2: Cash and Investments
Cash and investments are reported in the accompanying financial statements as follows:

Government-Wide Statement of Net Position
Governmental
Activities
Business
Activities
Fiduciary
Funds Total
$ 2,162,566 9,723,367 $ 1,060,688 $ 12,946,621 $
$ 2,162,566 9,723,367 $ 1,060,688 $ 12,946,621 $
Cash and Investments
Total Cash and Investments
Cash and investments as of June 30, 2021 consist of the following:
$ 1,940
4,778,695
4,780,635
8,165,986
8,165,986
12,946,621
Total Cash and Investments $ 12,946,621
Deposits:

Cash on Hand
Deposits with Financial Institution
Total Deposits
Investments
Local Agency Investment Fund
Total Investments
Total City Treasury
55 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments (Continued)
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. The carrying amount of the City’s cash deposit was $4,778,695 at June 30, 2021. Bank balances before reconciling items were $5,172,085, the total amount of which was insured and/or collateralized with securities held by pledging financial institutions in the City’s name as discussed in note 2.f.
a. Investments Authorized by the California Government Code and the City of Barstow Adopted Investment Policy
The table below identifies the investment types that are authorized for the City of Barstow by the California Government Code and by the City’s adopted investment policy. The table also identifies certain provisions of the California Government Code or the City’s adopted investment policy, where more restrictive, that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City or its authorities, rather than the general provisions of the California Government Code or the City’s adopted investment policy.

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One
Issuer
None None None
None None None
None None None
5 Years N/A N/A
N/A 30% 50%
180 Days 40% 30%
270 Days 25% None
1 Year None None
92 Days 20% None
N/A 20% 10%
5 Years 30% None
5 Years 20% None
N/A None $75 million
None None None
Mortgage Backed Securities
Local Agency Investment Fund (LAIF) *
Federal Agency
Bankers' Acceptance
Prime Commercial Paper
Repurchase Agreements
Reverse Repurchase Agreements
Mutual Funds Investing in Eligible
Medium Term Notes
Negotiable Certificates of Deposit
Authorized Investment Type
U.S. Treasury Bills, Notes, or Bonds
U.S. Agencies
CA Warrants, Treasury Notes and Bonds
Local Agency Bonds
*Limit set by LAIF Governing Board, not Government Code b. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy.
56 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments (Continued)
c. Disclosures Related to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates that 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. 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 maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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

Fair Value 1 Year or Less
Local Agent Investment Fund 8,165,986 $ 8,165,986 $
Total 8,165,986 $ 8,165,986 $
Investment Type
Investment
Maturities
(in years)
d. Disclosures Related to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation 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 or the City’s investment policy, and the actual rating as of year-end for each investment type.

Rating as of Year End
Fair Value Not Rated
$ N/A 8,165,986 8,165,986 $
Total 8,165,986 $ 8,165,986 $
Investment Type
Local Agency Investment Funds
Legal Minimum
Rating
Concentration of Credit Risk
The City’s investment policy contains certain limitations as disclosed in the accompanying table on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City has not invested more than 5% of its total investment value with any one issuer.
57 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments (Continued)
e. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2021, $ 4,922,085 of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts. f. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2021, include a portion of the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structures Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $8,165,986 invested in LAIF, which had invested

1.1% of the pool investment funds in Structured Notes and Asset-Backed Securities.

The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 1.00008297 to the total investments held by LAIF. 58 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 2: Cash and Investments (Continued)
g. Investment Valuation
Investments (except for money market accounts included in investments classified as restricted cash and investments) are measured at fair value on a recurring basis.

Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investment fair value measurements at June 30, 2021 are described on the following page.

Investments included in restricted cash and investments included money market accounts and guaranteed investment contracts are not subject to fair value measurement.

Fair Value
Not Subjected to
Disclosure
$ 8,165,968 $ 8,165,968
$ 8,165,968 $ 8,165,968
Investment Type
Local Agency Investment Fund
Total Investment Subject to Fair Value
Note 3: Accounts Receivable
Receivables as of year-end, including the applicable allowances for uncollectible accounts, are as follows:

Accounts
Receivable
Allowances
for
Uncollectibles
Accounts
Receivable,
Net
$ (68,937) 320,723 $ 251,786 $
- 506,917 506,917
- 26,549 26,549
- 984,864 984,864
Non Major Funds 159,653 - 159,653
(73,187) 828,721 755,534
(55,211) 419,082 363,871
$ (197,335) 3,246,509 $ 3,049,174 $
Enterprise Funds
Wastewater Reclamation
Solid Waste Disposal
Grants Fund
Funds
General Fund
Measure I Special Revenue Fund
Barstow Fire Protection District
Special Revenue Fund
59 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 4: Interfund Balances
The following table presents the interfund balances as of June 30, 2021:

Due to General Fund
Due From Other
Funds
Grants Fund $ 838,951
Non-Major Governmental Funds 85,491
Total $ 924,442
Capital projects, funded by reimbursable grants and capital allocations from Federal, State, and County sources, were approved by the City Council with the understanding that the General Fund lends monies to other funds with the expectation that the amounts will be repaid based on contractual commitments from other governmental entities. The Grants Special Revenue Fund and Non-Major Governmental Funds have expenses for which the expected reimbursement has not yet been received as of June 30, 2021.

The following table presents advances as of June 30, 2021:

Measure I Special
Revenue Fund
Barstow Fire
Protection District
Special Revenue
Fund
Wastewater
Reclamation
Enterprise Fund Total
$ 1,700,000 $ 5,317,392 $ 283,671 $ 7,301,063
$ 1,700,000 $ 5,317,392 $ 283,671 $ 7,301,063
Advances to Other Funds
General Fund
Total
Advances From Other Funds
In fiscal year 2016, the General Fund advanced $2,000,000 to the Measure I Special Revenue Fund to complete the Henderson/Cameron Area Road Project. Per San Bernardino County Transportation Authority (SBCTA), interest may not be charged on Measure I funds. As of June 30, 2021, the total amount owed to the General Fund is $1,700,000.

Beginning in fiscal year 2015, the General Fund began advancing funds to the Barstow Fire Protection District Special Revenue Fund to cover operational expenditures for each fiscal year. Funds advanced accumulated to $4,153,696 as of July 1, 2018. On October 1, 2018, the City and the Barstow Fire Protection District entered into a formal loan agreement with the balance due to be paid over a period of 5 years at a zero percent interest rate. The City has the option to declare at any point in time that the entire principal amount outstanding will be due and payable upon request. In fiscal year 2021, the General Fund advanced the Barstow Fire Protection District an additional $1,243,696. As of June 30, 2021, the total amount owed to the General Fund from the Barstow Fire Protection District Special Revenue Fund is $5,317,392.

In fiscal year 2015, the General Fund advanced $5 million to the Wastewater fund to cover major capital facility improvements. The funds were advanced at a 2% interest rate. As of June 30, 2021, the total amount owed to the General Fund from the Wastewater Fund is $283,671.
60 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 4: Interfund Transfers (Continued)
With Council approval, resources are transferred from one City fund to another. The transfers reflected are to record capital outlay and debt service for the year.

In the fund financial statements, total transfers were $8,189,791 as follows:

General Fund
Barstow Fire
Protection
District
City Capital
Projects
Non-Major
Governmental
Funds Total
General - $ 3,497,562 $ - $ - $ 3, $ 497,562
- - - 782,657 782,657
- 840,000 82,954 367,808 1,290,762
- 199,760 2, - 419,050 2, 618,810
Total 1,039,760 $ 3,497,562 $ 3,284,661 $ 367,808 $ 8, $ 189,791 Transfers In
Transfers Out
Non-Major Governmental Funds
Measure I Special Revenue Fund
Grants Fund
Major
The transfers between governmental funds have been eliminated in the government-wide statements.

The transfers of $3,497,562 from the general fund, $782,657 from the Grants Fund, $1,290,762 from the Measure I Fund, and $2,618,810 from Non-major governmental funds to Non-major governmental funds were for capital improvements and debt services.

Note 5: Capital Assets
A summary of changes in the governmental activities capital assets at June 30, 2021 are as follows:

Balance
July 1, 2020 Transfers of CIP Increases Decreases
Balance
June 30, 2021
Non-Depreciable Assets:

Work in Progress 10,154,019 $ (100,661) $ 3,409,333 $ 101,223 $ 13,361,468 $ Land 9,800,485 - - 98,001 9,702,484
Intangible Asset-Water Rights 85,000 - - - 85,000
Total Non-Depreciable Assets 20,039,504 (100,661) 3,409,333 199,224 23,148,952 Depreciable Assets:

Buildings and Improvements 28,829,129 35,784 - 3,528,585 25,336,328 Machinery and Equipment 5,496,564 64,877 113,675 376,606 5,298,510 Property Under Capital Lease 1,205,253 - 208,432 - 1,413,685 Infrastructure 113,337,068 - - 5,000 113,332,068
Total Depreciable Assets 148,868,014 100,661 322,107 3,910,191 145,380,591 Less Accumulated Depreciation:

Buildings and Improvements (18,301,986) - (504,705) (3,135,739) (15,670,952) Machinery and Equipment (3,986,333) - (257,277) (343,490) (3,900,120) Property Under Capital lease (222,509) - (171,992) - (394,501) Infrastructure (60,683,984) - (3,097,157) (5,000) (63,776,141) Total Accumulated Depreciation (83,194,812) - (4,031,131) (3,484,229) (83,741,714) Total Depreciable Assets, Net 65,673,202 100,661 (3,709,024) 425,962 61,638,877 Total Capital Assets 85,712,706 $ - $ (299,691) $ $ 625,186 $ 84,787,829 61 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 5: Capital Assets (Continued)
A summary of changes in the business-type activities capital assets at June 30, 2021 are as follows:

Balance
July 1, 2020 Transfers of CIP Increases Decreases
Balance
June 30, 2021
Non-Depreciable Assets:

Work in Progress 206,403 $ ( $ 118,802) $ - 150,140 $ $ 237,741 Land 1,657,637 - - - 1, 657,637
Total Non-Depreciable Assets 1,864,040 ( 118,802) - 150,140 1, 895,378 Depreciable Assets:

Buildings and Improvements 306,094 - - - 306,094
Machinery and Equipment 3,445,538 - - 2, 833,411 612,127 Property Under Capital Lease 169,364 - - - 169,364
Infrastructure 31,252,541 - 118,802 1,581 31, 369,762
Total Depreciable Assets 35,173,537 - 118,802 34, 834,992 457,347 Less Accumulated Depreciation:

Buildings and Improvements (210,879) - (6, - 419) ( 217,298) Machinery and Equipment (1,834,237) - ( ( 134,798) (1, 833,411) 135,624) Property Under Capital lease (64,601) - (16, - 440) (81, 041) Infrastructure (12,134,437) - ( ( 815,840) 998) (12,949,279) Total Accumulated Depreciation (14,244,154) - (973,497) (834,409) (14,383,242) Total Depreciable Assets, Net 20,929,383 118,802 (973,497) 583 20,074,105 Total Capital Assets $ 22,793,423 $ ( - $ 823,357) $ 583 $ 21,969,483 Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental
Activities
Business-Type
Activities
$ - 371,746 $
- 296,319
- 231,556
- 4,129
- 3,127,381
- 951,307
22,190 -
$ 4,031,131 $ 973,497
Solid Waste Disposal
Total Depreciation Expense
General Government
Public Safety
Recreation
Community Development
Public Works
Wastewater Reclamation
62 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 6: Long-Term Debt
During the year ended June 30, 2021, the following changes occurred in liabilities reported in long-term debt:

Balance
June 30, 2020 Additions
Deletions/
Adjustments
Balance
June 30, 2021
Due Within One
Year
$ - 1,395,000 $ (1,395,000) $ - $ - $
- 112,750 (112,750) - -
1,286,285 1,027,234 (719,295) 1,594,224 378,488
$ 1,286,285 2,534,984 $ (2,227,045) $ 1,594,224 $ 378,488 $ $ - 349,491 $ (302,434) $ 47,057 $ 30,086 $
Total Business Type Activities $ - 349,491 $ (302,434) $ 47,057 $ 30,086 $ Governmental Activities:

Measure I TRIP COP, Series 2012
Capital Lease Agreements
Total Governmental Activities
Business Type Activities:

Capital lease Agreement
Bond Premium - Measure I TRIP
a. California Communities Local Measure I Sales Tax Revenue (Installment Sale) Certificates of Participation, Series 2012 (T.R.I.P. – Total Road Improvement Program)
On December 1, 2012, the City entered into an installment sale agreement with the California Statewide Communities Development Authority (Authority) to issue California Communities Local Measure I Sales Tax Revenue (Installment Sale) Certificates of Participation, Series 2012 (T.R.I.P. – Total Road Improvement Program), totaling $9,770,000. The purpose was to (i) finance the design, acquisition, and construction of certain local roadway improvements and street resurfacing projects within the jurisdiction of the City; (ii) fund a reserve subaccount within the reserve fund for the Certificates, and; (iii) pay the costs incurred in connection with the execution, sale, and delivery of the Certificates.

The City is required under the 2012 installment sale agreement to make installment sale payments to the Authority. Installment Sale Payments are payable from a first lien on all Measure I receipts, generally consisting of certain amounts received by the City from a

0.5% sales and use tax that is collected in the County of San Bernardino, California for a thirty-year period ending on March 31, 2040. Measure I revenues received by the City for the fiscal year ended June 30, 2021 were $375,549. The Measure I TRIP COPs were paid in full in fiscal year 2020-2021.
b. Capital Lease Agreements
The City entered into a capital lease agreement to finance the cost of an energy retrofit project for $5,489,461. The City is required to make monthly payments of $55,536.

The monthly payment includes principal and interest at 4.795%. The lease is for 126 months and expires in July 2021.

Governmental
Activities
Lease Payment Lease Payment
2022 21,971 $ 16,575 $
Total Minimum Lease Payments 21,971 16,575
Less: Amount representing interest (87) (66)
Present Value of Future Minimum Lease Payments 21,884 $ 16,509 $ Business Type
Activities
Year Ending June 30,
63 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 6: Long-Term Debt (Continued)
The City entered into a multi-year capital lease program for vehicle replacement. Each year, vehicles in the fleet are evaluated and proposed additions and retirements are taken to the City Council for approval. The City makes an annual payment based on the leased vehicles in the fleet. In fiscal year 2021, the City leased 1 new vehicle for governmental activities at a cost of $43,408 and made an annual lease payment of $284,602. The City made an annual lease payment of $23,945 related to the business type activity leases. Future minimum lease payments under all of the leases are as follows:

Governmental
Activities
Lease Payment Lease Payment
2022 244,147 $ 20,821 $
2023 201,173 13,579
2024 24,171 7,778
2025 8,116 3,241
Total Minimum Lease Payments 477,607 45,419
Less: Amount representing interest (82,612) (14,871)
Present Value of Future Minimum Lease Payments 394,995 $ 30,548 $ Business Type
Activities
Year Ending June 30,
In fiscal year 2020-2021, the City entered into a lease agreement to finance the cost to refurbish a fire engine, and purchase a new fire apparatus, and hydraulic lift to service the fire apparatus.

The total available financing is $1,451,751. At June 30, 2021, costs of $1,242,878 were incurred relating to the purchase of the fire equipment. The City is required to make semiannual lease payments of 83,601, including principal and interest at a rate of 2.45% until the year 2030.

Governmental
Activities
Lease Payment
2022 167,202 $
2023 167,202
2024 167,202
2025 167,202
2026 167,202
2027-2030 520,290
Total Minimum Lease Payments 1,356,300
Less: Amount representing interest (178,955)
Present Value of Future Minimum Lease Payments 1,177,345 $ Year Ending June 30,
Note 7: Pollution Remediation Liability
During the year ended June 30, 2021, the following changes occurred in the City’s Pollution Remediation Liability
Balance
June 30, 2020 Additions
Deletions/
Adjustments
Balance
June 30, 2021
Due Within
One Year
$ 5,486,099 $ - $ (17,107) $ 5,468,992 $ 51,500
Business Type Activities:

Pollution Remediation Liability
64 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 7: Pollution Remediation Liability (Continued)
On August 2, 2006, the California Regional Water Quality Board issued an order requiring the City of Barstow to take remediation action for wastewater discharges resulting in alleged increases in the nitrate levels in the water supply resulting from the City’s wastewater plant.

Major long-term costs associated with the project include quarterly well sampling and reporting; operation and maintenance of a groundwater remediation system: and replacement drinking water to select residents. In 2015, the City completed the Phase I Improvement Project, which resulted in an improved effluent water quality from the Barstow Wastewater Treatment Plant.

In 2019, the California Regional Water Quality Control Board issued a new discharge permit that encompassed new and revised sampling requirements for the treatment plant and the surrounding monitoring wells. During this time the Regional Water Quality Control Board removed the Cease and Desist Order against the City of Barstow. To date approximately $3,386,008 has been spent. Implementation of the mitigation order has been delayed pending the outcome of the discussions with the Regional Water Quality Board to include perchlorate remediation, (which is not the City’s responsibility) with nitrate remediation. The City anticipates spending $51,500 for the operating and testing costs in fiscal year 2022 and will continue the monitoring costs relating to legal mandates such as regulatory agency orders, court orders or other affirmative legal obligations. A summary of the components of the pollution remediation liability at June 30, 2021 is as follows:

Liability
$ 10,257
1,401
5,450
$ 17,108
Obligating Event
Total by Obligating Event
Replacement Drinking Water
Quarterly and Maintenance of Groundwater
Operation and Maintenance of Ground Water
Method and Assumption
With the adoption of GASB 49, the pollution remediation sites on the property managed and operated by the City were evaluated. The City applied the requirements of GASB 49 and measured the environmental liabilities for pollution remediation sites using the expected cash flow technique. The measurements are based on the current value of the outlays expected to be incurred. The cash flow scenarios include components which can be reasonably estimated for outlays such as testing, monitoring, legal services and indirect outlays. Reasonable estimates of ranges of possible cash flows are limited from a single scenario to a few scenarios. Data used to develop the cash flow scenarios is obtained from outside consultants and City staff.

Changes to estimates will be made when new information becomes available, increases or reductions in price, changes in technology, or changes in applicable laws or regulations. At a minimum, the City will evaluate the estimates for the pollution remediation sites when the following benchmarks occur.
 Receipt of an administrative order.
 Participation, as a responsible party or a potentially responsible party, in the site assessment or investigation.
 Completion of a corrective measures feasibility study.  Issuance of an authorization to proceed.
 Remediation design and implementation, through and including operation and maintenance and post remediation monitoring.
65 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 8: Compensated Absences
The City’s policy relating to compensated absences is described in Note 1. Compensated absences are liquidated primarily by the General Fund and the Enterprise Funds. The total amount outstanding at June 30, 2021, was $1,567,956 for governmental activities and $174,733 for business-type activities.

Balance
June 30, 2020 Incurred Satisfied
Balance
June 30, 2021
Due Within
One Year
$ 1,567,956 $ 1,073,665 $ (784,672) $ 1,856,949 $ 742,780 Business Type Activities $ 174,733 $ 85,505 $ (123,331) $ 136,907 $ 54,763 Governmental Activities
Note 9: Risk Management
The City is a member of Public Entity Risk Management Authority (PERMA), a joint powers insurance authority formed under Section 990 of the California Government Code for the purpose of jointly funding programs of insurance coverage for its members. PERMA is comprised of thirty-one participating member agencies: twenty-one cities, four transit agencies and six special districts. PERMA is governed by a Board of Directors which consists of one director from each member agency. The City participates in the Liability, Workers' Compensation, Employment Practices Liability, Property Insurance, Auto Physical Damage, Cyber Liability, and Crime Coverage insurance programs of PERMA.

The Liability program provides coverage up to $50 million per occurrence for personal injury, bodily injury, property damage and public officials' errors and omissions. The City self-insures up to $125,000 per occurrence and participates in risk sharing pools for losses up to $1 million followed by PERMA's membership in the Public Risk Innovation, Solutions, and Management (PRISM) for $49 million excess liability coverage. PERMA administers the City’s liability claims.

The Workers' Compensation program provides statutory limits per accident for workers' compensation and $5 million each accident for employers' liability. The City self-insures up to $250,000 per accident or employee and participates in a risk sharing pool for losses up to $500,000 followed by PERMA's membership in the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX) for excess coverage. A third-party administrator administers the City’s workers’ compensation claims.

The Employment Practices Liability program provides up to $1 million coverage for employment related lawsuits, such as wrongful termination and discrimination. The City self-insures up to $25,000 per occurrence and participates in the Employment Risk Management Authority (ERMA) for losses up to $1 million. Coverage above $1 million and up to $50 million is available through PERMA’s membership in PRISM for excess liability coverage.

The Property Insurance program is group purchased under a master property insurance policy with accumulated values from all participants effecting lower rates and broader coverage for members. The program covers real property, business personal property, inland marine coverage for special mobile equipment and business interruption. Commercial property coverage is written on a replacement cost basis and all risk, eliminating the traditional commercial "named peril" policy.
66 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 9: Risk Management (Continued)
The Auto Physical Damage program is also group purchased under a master insurance policy with accumulated values from all participants effecting lower rates for members. Auto physical damage coverage is written on an agreed amount basis.

The Cyber Liability program is also group purchased under a master insurance policy and provides coverage for information security and privacy liability, privacy notification costs, regulatory defense and penalties, website media content liability, cyber extortion, first party data protection, and business interruption losses. The program provides its insureds with access to a breach response team consisting of privacy expert attorneys, forensic specialists to determine scope of breach, notification vendors, and credit monitoring services at preferred rates.

The Crime Coverage program is also group purchased under a master insurance policy and provides coverage up to $1,000,000 for employee theft, forgery or alteration, computer fraud and funds transfer fraud.

None of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage for the past three (3) years. There have been no reductions in pooled or insured coverage from coverage in the prior year. General fund resources would be typically used to liquidate the claims liability, should the need arise.

The claims liability is estimated based on actuarial studies of the Liability and Workers’ Compensation program. The actuary used a 65% confidence level and discounted the liabilities using a 2% interest rate.
2021 2020 2019
$ 1,683,201$ 2,370,315 1,838,232$
677,615 1,407,654 385,735
(169,455) (720,540) (540,766)
$ 2,878,475 2,370,315$ 1,683,201$
Due Within One Year $ 575,695 474,063$ 336,641$
Due in More Than One Year 2,302,780 1,896,252 1,346,560 $ 2,878,475 2,370,315$ 1,683,201$
$ 239,823 426,977$ 278,058$
1,635,798 (158) 429,835
(1,391,031) (186,996) (280,916)
$ 484,590 239,823$ 426,977$
Due Within One Year $ 121,147 59,956$ 106,743$
Due in More Than One Year 363,443 179,867 320,234
$ 484,590 239,823$ 426,977$
Liability, June 30
Claim Payments
Incurred Claims and Changes in Estimates
Liability, July 1
Workers' Compensation
Liability, June 30
Claim Payments
Incurred Claims and Changes in Estimates
Liability, July 1
General Liability
67 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans
a. Summary of Pension Plan Balances
Pension related balances presented on the Statement of Net Position as of June 30, 2021, by individual plan are described in the following table:

Deferred
Employer
Contributions
Deferred
OutflowsPensionNet Pension
Liability
Deferred
InflowsPensionPension
Expense
$ 3,405,375 $ 4,669,311 $ (29,751,671) $ (2,567,246) $ 6,086,358 2,029,361 7,231,464 (16,891,227) (3,315,013) 3,201,401
Total $ 5,434,736 $ 11,900,775 $ (46,642,898) $ (5,882,259) $ 9,287,759 SBCERA- Barstow Fire Protection District
CalPERS Cost Sharing Plan
b. CALPERS Safety and Miscellaneous Employees Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety).

Benefit provisions under the Plan are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law.
68 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
The rate plan provisions and benefits in effect at the measurement date are summarized as follows:

Safety - Classic Miscellaneous - Classic
Hire Date Prior to January 1, 2013 Prior to January 1, 2013 5 Years Service 5 Years Service
Monthly For Life Monthly For Life
50 55
3% 2.7%

9.000% 8.000%

21.927% 13.182%
$ 813,069 $ 827,964
Safety - PEPRA Miscellaneous - PEPRA
Hire Date On or After January 1, 2013 On or After January 1, 2013 5 Years Service 5 Years Service
Monthly For Life Monthly For Life
57 62

2.70% 2.00%

11.500% 6.250%

13.034% 6.985%
$ 1,674 $ 13,931
Required Employer Contribution Rates
Required UAL Payment
Required UAL Payment
Benefit Vesting Schedule
Benefit Payment
Retirement Age
Monthly Benefits, as a % of Annual Salary
Required Employee Contribution Rates
Required Employer Contribution Rates
Benefit Vesting Schedule
Benefit Payment
Monthly Benefits, as a % of Annual Salary
Retirement Age
Required Employee Contribution Rates
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are to 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. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contributions to the Plan for the measurement period ended June 30, 2020, recognized as a reduction to the net pension liability were $3,124,739.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $29,751,671. 69 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportionate of the net pension liability was based on the City’s plan liability and asset-related information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

The City’s proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2019 and 2020 were as follows:

0.24588%

0.26490%

0.01902%
Proportion - June 30, 2019
Proportion - June 30, 2020
Change - Increase (Decrease)
For the year ended June 30, 2021, the City recognized pension expense of $6,086,358.

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources.

Deferred Outflows
of Resources
Deferred Inflows of
Resources
$ 3,405,375 $ -
- (155,706)
1,919,765 -
1,984,206 -
(2,411,540) -
765,340 -
Total $ 8,074,686 $ (2,567,246)
Pension Contributions Subsequent to Measurement Date
Differences Between the Employer's Contribution and the Employer's Proportionate Share of Contributions
Net Differences Between Projected and Actual Earnings on Plan Investments
Changes in Employer's Proportion
Differences Between Expected and Actual
Changes of Assumptions
$3,405,375 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2021.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement
Period Ending
June 30:
2021 426,680 $
2022 740,920
2023 560,465
2024 374,000
Total $ 2,102,065
70 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2020, actuarial valuations were determined using the following actuarial assumptions:

Entry - Age Normal in Accordance with the
Requirements of GASB 68

7.15%

2.50%
Varies by Entry Age and Service
Derived by CalPERS Membership Data for All Funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.50% thereafter
Mortality Rate Table
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Projected Salary Increase
Inflation
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019, valuation were based on the results of a January 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can found on the CalPERS website.

Change of Assumptions - There were no changes in assumptions.

Subsequent Events - There were no subsequent events to the plan that would materially affect the results presented.

Discount Rate – The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the 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 7.15 percent discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 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 equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
71 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
The table below reflects the 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. These rates of return are net of administrative expenses.

New Strategic
Allocation
Real Return
Years 1 - 10(a)2
Real Return
Years 11+(b)3

50.00% 4.80% 5.98%

28.00% 1.00% 2.62%
- 0.77% 1.81%

8.00% 6.30% 7.23%

13.00% 3.75% 4.93%

1.00% - -0.92%
Total 100.00%
Liquidity
1 In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
3 An Expected Inflation of 2.92% Used for this Period.
2 An Expected Inflation of 2.00% Used for thie Period.

Global Equity
Asset Class 1
Fixed Income
Inflation Assets
Private Equity
Real Assets
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

6.15%
$ 47,786,201

7.15%
$ 29,751,671

8.15%
Net Pension Liability $ 14,891,260
1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 72 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
c. San Bernardino County Employees’ Retirement Association (SBCERA) The District became a component of the City from November 17, 2010, and effective that date all of the employees of the District have become employees of the City. The District employees were covered under the pension plan of the San Bernardino County Employees’ Retirement Association (SBCERA). Subsequent to the merger, the members of Barstow Professional Firefighters Association were enrolled in the City’s retirement program through the SBCERA.

Plan Description
The SBCERA is a cost-sharing multiple-employer defined benefit pension plan (the Plan) operating under the California County Employees' Retirement Act of 1937 (1937 Act). It provides retirement, death and disability benefits to members. Although legally established as a single employer plan, the City of Big Bear Lake, Department of Water and Power-City of Big Bear Lake, Crestline Sanitation District, California State Association of Counties, South Coast Air Quality Management District (SCAQMD), San Bernardino Associated Governments (SANBAG), Local Agency Formation Commission (LAFCO), San Bernardino County Law Library, Barstow Fire Protection District, Hesperia Recreation and Parks District, SBCERA, City of Chino Hills, Mojave Desert Air Quality Management District (MDAQMD), California Electronic Recording Transaction Network Authority (CERTNA), along with the County, and are collectively referred to as the “Participating Members.” The plan is governed by the SBCERA Board of Retirement under the 1937 Act. Employees become eligible for membership on their first day of regular employment and become fully vested after 5 years. SBCERA issues a stand-alone financial report, which may be obtained by contacting the Board of Retirement, 348 W Hospitality Lane - 3rd Floor, San Bernardino, California 92415-0014.

Benefits Provided
SBCERA provides service retirement, disability, death, and survivor benefits to eligible employees. Generally, any employee of the County of San Bernardino or participating employers who is appointed to a regular position whose service is greater than fifty percent of the full standard of hours required by a participating SBCERA employer (e.g. 20 hours per week or more) must become a member of SBCERA effective on the first day of employment. There are separate retirement benefits for General and Safety member employees. Safety membership is extended to those involved in active law enforcement and fire suppression. All other members are classified as General Members.

There are currently two tiers applicable to both General and Safety members. Members with membership dates before January 1, 2013 are included in General Tier 1 or Safety Tier 1. Any new member who becomes a member on or after January 1, 2013 is designated as General Tier 2 or Safety Tier 2 and is subject to the provisions of California Public Employees’ Pension Reform Act of 2013 (CalPEPRA), California Government Code 7522 et seq. and Assembly Bill (AB) 197.

General members prior to January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired 10 or more years of retirement service credit. A member with 30 years of service is eligible to retire regardless of age.

General members who are first hired on or after January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 52 and have acquired five or more years of retirement service credit.
73 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
Safety members prior to January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired 10 or more years of retirement service credit. A member with 20 years of service is eligible to retire regardless of age.

Safety members who are first hired on or after January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired five or more years of retirement service credit.

The retirement benefits the member will receive is based upon age at retirement, final average compensation, years of retirement service credit and retirement plan and tier.

General Tier 1 benefit is calculated pursuant to the provisions of California Government Code of Section 31676.15. The monthly allowance is equal to 2% of final compensation times years of accrued retirement service credit times age factor from Section 31676.15.

General Tier 2 benefit is calculated pursuant to the provisions found in California Government Code Section 7522.20(a). The monthly allowance is equal to the final compensation multiplied by years of accrued retirement credit multiplied by the age factor from Section 7522.20(a).

Safety Tier 1 benefit is calculated pursuant to the provisions of California Government Code Section 31664.1. The monthly allowance is equal to 3% of final compensation times years of accrued retirement service credit times age factor from Section 31664.1. Safety Tier 2 benefit is calculated pursuant to the provisions found in California Government Code Section 7522.25(d). The monthly allowance is equal to the final compensation multiplied by years of accrued retirement credit multiplied by the age factor from Section 7522.25(d).

For Tier 1 members, the maximum monthly retirement allowance is 100% of final compensation. There is no final compensation limit on the maximum retirement benefit for Tier 2 members. However, the maximum amount of compensation earnable that can be taken into account for Tier 1 members with membership dates on or after July 1, 1996 is $265,000. The maximum amount of pensionable compensation for Tier 2 members that can be taken into account is equal to $140,424. These limits are adjusted on an annual basis. Members are exempt from paying member contributions and employers are exempt from paying employer contributions on compensation in excess of the annual cap.

Final average compensation consists of the highest 12 consecutive months for Tier 1 members and the highest 36 consecutive months for Tier 2 members.

The member may elect an unmodified retirement allowance or choose an optional retirement allowance. The unmodified retirement allowance provides the highest monthly benefit and a 60% continuance to an eligible surviving spouse or domestic partner. An eligible surviving spouse or domestic partner is one married to or registered with the member one year prior to the effective retirement date or at least two years prior to the date of death and has attained age 55 on or prior to the date of death. There are four optional retirement allowances the member may choose. Each of the optional retirement allowances requires a reduction in the unmodified retirement allowance in order to allow the member the ability to provide certain benefits to a surviving spouse, domestic partner, or named beneficiary having an insurable interest in the life of the member.
74 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
SBCERA provides an annual cost-of-living benefit to all retirees. The cost-of-living adjustment based upon the Consumer Price Index for All Urban Consumers for the Los Angeles-Riverside-Orange County Area, is capped at 2.0%.

The County of San Bernardino and participating employers contribute to the retirement plan based upon actuarially determined contribution rates adopted by the Board of Retirement. Employer contribution rates are adopted annually based upon recommendations received from SBCERA’s actuary after the completion of the annual actuarial valuation.

All members are required to make contributions to SBCERA regardless of the retirement plan or tier in which they are included.

Fire safety members contribute the required employee share of their pension. The percentage of pay varies between 12.30% – 17.74%.

The District pays a capped percentage of the employer’s pension cost per the Barstow Professional Fire Fighters Association Memorandum of Understanding. The employer’s costs are capped at 46% with the employee paying the difference.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law 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. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by SBCERA. 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contributions to the Plan for the measurement period ended June 30, 2020 were $2,029,361.

During the fiscal year, the City transferred from the “Other Safety” cost group within SBCERA to the “County Safety” cost group to achieve future savings in the cost of the City’s contributions to SBCERA. Such transfer must be made in a manner that does not shift the present unfunded liability burden associated with the City, or a portion thereof, to the County. The Parties have agreed that the amount that must be contributed to SBCERA to effectuate the inclusion of the City into the present County Safety cost group, and avoid negatively impacting the County as a result thereof, ls $8,485,000 calculated as of June 30, 2018. The Parties have further agreed that this amount may be amortized over twenty years at SBCERA's assumed rate of return for investments, which is 7.5%, resulting in twenty annual payments of $832,312 beginning on or before July 1, 2017, and continuing on or before each successive July 1 thereafter, through and including July 1, 2036.

The payments are considered supplemental contributions in addition to the regular employer contribution rates annually set by the SBSERA Board of Retirement and approved by the County Board of Supervisors.
75 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $16,891,227 The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2020. The City’s proportionate of the net pension liability was based on the City’s share of all actual contributions, actuarially determined.

The City’s proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2019 and 2020 were as follows:

0.457%

0.421%
-0.036%
Proportion - June 30, 2019
Proportion - June 30, 2020
Change - Increase (Decrease)
For the year ended June 30, 2021, the City recognized pension expense of $3,038,423 At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources Deferred Outflows
of Resources
Deferred Inflows
of Resources
$ 2,029,361 $ -
1,978,725 -
1,481,273 (3,154,750)
3,564,321 -
207,145 (160,263)
Total $ 9,260,825 $ (3,315,013)
Pension Contributions Subsequent to Measurement Date
Changes of Assumptions or Other Inputs
Changes in Employer's Proportion and Differences Between the Employer's Contribution and the Employer's Proportinate Share of Contributions
Net Differences Between Projected and Actual Earnings on Plan Investments
Difference Between Expected and Actual Experience in the Total Pension Liability
$2,029,361 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2021.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement
Period Ending
June 30:
2022 495,737 $
2023 1,107,874
2024 1,396,388
2025 856,246
2026 60,206
Total 3,916,451 $
76 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2020, actuarial valuations were determined using the following actuarial assumptions:

June 30, 2020
June 30, 2020
Entry - Age Actuarial Cost Method

7.25%

3.00%
General: 4.50% to 14.5% and Safety: 4.7% to 14.5%
Contingent upon CPI increases with a 2% maximum

7.25%
Mortality rates are based on the HeadcountWeighted RP 2014 Healthy Annuitant Mortality Table projected generationally using the two-dimensional
mortality improvement scale MP-2016. For healthy
General males members, the ages are set forward
one year. No adjustment for healthy General female
members. For Safety members, ages are set back
one year. For disabled General members, ages are
set forward seven years.
2 Varying by service, including inflation 3% plus real across-the-board salary increase of 0.5% plus merit and promotional increases for both June 30, 2020, and 2019.

Mortality
Measurement Date
Valuation Date
Cost of Living Adjustments
Investment Rate of Return 1
1 Net of pension plan investment expenses, including inflation.

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Projected Salary Increase 2
Inflation
Change of Assumptions - There were no changes in assumptions.

Subsequent Events - There were no subsequent events to the plan that would materially affect the results presented.

Discount Rate – The discount rates used to measure the Total Pension Liability was 7.25% as of June 30, 2020. The projection of cash flows used to determine the discount rate assumed employer and member contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employee and employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on pension plan investments of 7.25% was applied to all periods of projected benefit payments to determine the Total Pension Liability as of June 30, 2020.

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

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
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 inflation) are developed for each major asset class. These returns 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, adding expected inflation and subtracting expected investment expenses and a risk margin.

The June 30, 2020, target allocations (approved by the Board) and projected arithmetic real rates of return for each major asset class, after deducting inflation but before deducting investment expenses, used in the derivation of the long-term expected investment rate of return assumption is summarized in the table on the following page.

Total Allocation
Long-Term
ExpectedReal Rate of
Return (Arithmetic)

11.00% 5.42%

2.00% 6.21%

9.00% 6.50%

6.00% 8.80%

2.00% 1.13%

13.00% 3.40%

1.00% -0.04%

8.00% 3.44%

3.00% 4.57%

3.00% 6.53%

3.00% -0.03%

11.00% 5.89%

7.00% 3.69%

5.00% 10.64%

16.00% 10.70%
100.00%
International Credit
Absolute Return
Real Assets
Private Equity
Total
Cash & Equivalents
Asset Class
Large Cap U.S. Equity
Small Cap U.S. Equity
Developed International Equity
Emerging Market Equity
U.S. Core Fixed Income
High Yield/ Credit Strategies
International Core Fixed Income
Emerging Market Debt
Real Estate
Value added real estate
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

6.25%
$ 23,703,774

7.25%
$ 16,891,227

8.25%
Net Pension Liability $ 11,312,878
1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
78 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 10: Retirement Plans (Continued)
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued SBCERA financial reports.

Payable to the Pension Plan
At June 30, 2021, the City reported a payable of $20,004 for outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.

Note 11: Post-Employment Healthcare Benefits
a. City of Barstow OPEB Plan
Pension related balances presented on the Statement of Net Position as of June 30, 2021, by individual plan are described in the following table:

Deferred
Employer
Contributions -
OPEB
Deferred
OutflowsOPEBNet OPEB
Liability
Deferred
Inflows- OPEB
OPEB
Expense
$ 1,833,336 851,272 $ 20,236,016 $ (327,108) $ 1,273,542 $ 33,966 220,483 3,889,081 (31,494) 659,231
Total $ 885,238 $ 2,053,819 $ 24,125,097 $ (358,602) $ 1,932,773 Barstow Fire Protection District OPEB Plan
City of Barstow OPEB Plan
Plan Description
The City provides retiree medical benefits under the CalPERS health plan which provide medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. Copies of the CalPERS’ annual financial report may be obtained from the CalPERS Executive Office, 400 Q Street, Sacramento, California 95811.

The CalPERS health plan is an agent multiple employer defined benefit plan.

Employee Covered
Inactive Employees of Beneficiaries Currently Receiving Benefits 114 Inactive Employees Entitled to but not yet Receiving Benefits 32 Active Employees 135
Total 281
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council. The City must agree to make a defined monthly payment towards the cost of each retiree’s coverage. The required contribution is based on projected prefunding financing requirements. For the measurement period 2019-2020, the City contributed $851,272 which were in the form of benefit payments during the period.

The City did not make additional contributions to the CERBT trust (CERBT).

CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund OPEB as described in GASB Statement No. 45. The CERBT issues a publicly available financial report that included financial statements and required supplementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CalPERS. 79 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions June 30, 2019
June 30, 2020
Entry - Age Normal Cost, level percent of pay

2.66%

2.5% per year

2.5% per year

3.00%

6.75% 1
MacLeod Watts Scale 2018 applied generationally
Post-retirement mortality projected fully generational
with Scale MP-2017

6.5% as of Jan 1, 2011; and grade down to 4.0% for
years 2076 and thereafter
Mortality
Measurement Date
Valuation Date
Investment Rate of Return
1 Net of pension plan investment expenses and including inflation.

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Assumed Wage Inflation
Healthcare Trend
Post Retirement Benefit Increase
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. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page.

Target Allocation*
Expected Real
Return Year 1-10
Expected Real
Return Years 11+

59.00% 4.80% 5.98%

25.00% 1.10% 2.62%

8.00% 3.20% 5.00%

5.00% 0.25% 1.46%

3.00% 1.50% 2.87%

2.00%
N/A

6.75%

2.79%
Asset Class
Global Equity
Fixed Income
Global Real Estate (REITs)
Treasury Inflation Protected Securities
Assumed Long-Term Investment Expenses
Expected Long-Term Net Rate od Return, Rounded
Discount Rate
*Real rates of return come from a geometric representation of returns that assume a general inflation rate of 2%.

Commodities
Assumed Long-Term Rate of Inflation
80 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) Discount Rate
The discount rate used to measure the total OPEB liability was 2.66 percent. The discount rate used reflects the results of a crossover test. In years where the trust is expected to have sufficient assets to pay the current year’s retiree benefits, the assumed trust rate of return is applied; once the trust is no longer expected to be able to pay plan benefits, a municipal bond rate is applied for the remainder of the projects. The S&P General Obligation Municipal Bond 20 Year High Grade Index was used for the purpose of the municipal bond rate.

Changes in the net OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability/Asset
$ 1,293,319 20,861,858 $ 19,568,539 $
- 532,051 532,051
- 586,298 586,298
- - -
353,512 353,512
(759,312) (759,312) (1,518,624)
- 759,312 759,312
- 45,704 45,704
- (632) (632)
712,549 45,072 757,621
$ 21,574,407 $ 1,338,391 $ 20,236,016
Differences between expected and actual experience
Changes in Assumptions
Increase (Decrease)
Balance at June 30, 2020
Change in the Year:

Service Cost
Interest
Net Changes
Balance at June 30, 2021
Benefit Payments
Contribution - Employer
Net Investment Income
Administrative Expenses
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease

1.66%
Current
Discount

2.66%
1% Increase

3.66%
Net OPEB Liability 23,286,197 $ 20,236,016 $ 17,735,950 $ Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease

5.5% - 3%
Current
Healthcare
Trend Rate

6.5% - 4%
1% Increase

7.5% - 5%
Net OPEB Liability 19, $ 20, 031,854 $ 22,034,268 236,016 $ 81 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) Recognition of Deferred Outflow and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net differences between projected and actual
earnings on OPEB plan investments
All Other Amounts
5 years straight-line recognition
Expected average remaining service lifetime
(EARSL) (6.24 years at June 30, 2020,
measurement date)
OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $1,273,542. For the fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred Inflows
of Resources
$ 851,272 $ -
74,913 -
1,730,976 (327,108)
27,447 -
Total $ 2,684,608 $ (327,108)
OPEB Contributions Subsequent to Measurement
Differences between expected and actual experience
Changes of Assumptions
Net Difference Between Projected and Actual
The $851,272 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020, measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Measurement
Period Ending
June 30:
2021 $ 241,840
2022 313,264
2023 424,870
2024 380,320
2025 132,340
Thereafter 13,594
Total $ 1,506,228
82 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) b. Barstow Fire Protection District OPEB Plan
Plan Description
The Barstow Fire Protection District (BFPD) became part of the City of Barstow in November 2010 as a special revenue fund. In previous years, the Barstow Fire Professional Fire Fighters Association (BFPA) had a separate health insurance plan, Riverstone Capital, apart from City Employees. Riverstone Capital notified the City that effective February 28, 2019, the BFPD employees would be losing their Stop Loss/Reinsurance coverage. The City's/BFPD's insurance broker, Alliant/Crystal and Company, reviewed several options and it was determined that moving the BFPD employees into CalPERS medical would offer the best long-term coverage options for the employees.

CalPERS would also extend the coverage to retirees. The previous method for providing retiree coverage under BFPA's Memorandum of Understanding (MOU) required the retiree carry their own insurance coverage and submit proof of payment of the premium and a request for reimbursement on a monthly basis. Including retired firefighters in CalPERS medical coverage streamlined the process for the city and the retiree.

A meeting with BFPD members was held to advise them of the situation and staff began the process to enroll them into CalPERS health coverage effective March 1, 2019. The inclusion of the BFPD firefighters in CalPERs medical coverage also simplified the process of providing medical insurance to all City employees.

The City provides retiree medical benefits to eligible retirees and their spouses in accordance with their labor agreements.

Employee Covered
Inactive Employees or Beneficiaries Currently Receiving Benefits4 Inactive Employees Entitled to but not yet Receiving Benefits 0 Active Employees 19
Total 23
Contributions
The contribution requirements of plan members and the District are established and may be amended by the Board of Directors. The District must agree to make a defined monthly payment towards the cost of each retiree’s coverage. The required contribution is based on projected prefunding financing requirements. For the measurement period 2019-20, the District contributed $19,568, which were in the form of benefit payments during the period. The City did not make additional contributions to the CERBT trust (CERBT).

CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to prefund OPEB as described in GASB Statement No. 45. The CERBT issues a publicly available financial report that included financial statements and required supplementary information for the City, not individualizing, but in aggregate with the other CERBT participants. That report may be obtained by contacting CalPERS. 83 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) Net OPEB Liability
The District’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:

June 30, 2019
June 30, 2020
Entry - Age Normal Cost Method

2.70%

2.50%
Contributes full ADC
Varies by Entry Age and Service

3.00%

7.05%
MacLeod Watts Scale 2020 applied generationally
Healthcare Trend 5.4% decreasing to 4.00% in 2076
Contribution Policy
Mortality
Measurement Date
Valuation Date
Investment Rate of Return
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Projected Salary Increases
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. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table below.

Target Allocation*
Expected Real
Return Year 1-10
Expected Real
Return Years 11+

59.00% 4.80% 5.98%

25.00% 1.10% 2.62%

8.00% 3.20% 5.00%

5.00% 0.25% 1.46%

3.00% 1.50% 2.87%

2.00%
N/A

7.05%

2.70%
Asset Class
Global Equity
Fixed Income
Global Real Estate (REITs)
Treasury Inflation Protected Securities
Assumed Long-Term Investment Expenses
Expected Long-Term Net Rate of Return, Rounded
Discount Rate
*Real rates of return come from a geometric representation of returns that assume a general inflation rate of 2%.

Commodities
Assumed Long-Term Rate of Inflation
Discount Rate
The discount rate used to measure the total OPEB liability was 2.70 percent. The discount rate used reflects the results of a crossover test. In years where the trust is expected to have sufficient assets to pay the current year’s retiree benefits, the assumed trust rate of return is applied; once the trust is no longer expected to be able to pay plan benefits, a municipal bond rate is applied for the remainder of the projects. The S&P General Obligation Municipal Bond 20 Year High Grade Index was used for the purpose of the municipal bond rate.
84 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) Changes in the net OPEB Liability
The changes in the net OPEB liability for the OPEB Plan are as follows:

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability/Asset
$ 3,474,315 $ 284,169 $ 3,190,146
544,393 544,393 -
111,849 111,849 -
72,167 - 72,167
19,568 - (19,568)
(19,568) (19,568) -
10,045 - (10,045)
- (139) 139
708,841 9,906 698,935
$ 4,183,156 $ 294,075 $ 3,889,081
Net Changes
Balance at June 30, 2021
Contribution - Employer
Benefit Payments
Net Investment Income
Administrative Expenses
Charges in Assumptions
Increase (Decrease)
Balance at June 30, 2020
Change in the Year:

Service Cost
Interest on the Total OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the District if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease

1.70%
Current
Discount

2.70%
1% Increase

3.70%
Net OPEB Liability 4,826,289 $ $ 3,889,081 $ 3,178,755
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates Due to the nature of the benefit agreements of the plan, the health care cost trend rate was not considered to be a significant assumption in determining the net OPEB liability, hence the sensitivity disclosure with regard to the healthcare cost trend rate was not applicable.

Recognition of Deferred Outflow and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net differences between projected and actual
earnings on OPEB plan investments
All Other Amounts
5 years straight-line
Expected average remaining service lifetime (EARSL)
(9.52 years at June 30, 2020)
85 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 11: Post-Employment Healthcare Benefits (Continued) OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2021, the District recognized OPEB expense of $659,231. For the fiscal year ended June 30, 2021, the District reported deferred outflows of resources related to OPEB from the following sources:

Deferred Outflow
of Resources
Deferred Inflow
of Resources
$ - 33,966 $
(31,494) 115,257
- 98,651
- 6,575
Total 254,449 $ (31,494) $
Net Difference Between Projected and Actual
Earnings on Plan Investments
Changes of Assumptions
OPEB Contributions Subsequent to Measurement
Differences between expected and actual experience
The $33,966 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Measurement
Period Ending
June 30:
2021 22,880 $
2022 24,486
2023 24,965
2024 24,580
2025 22,584
Thereafter 69,494
Total $ 188,989
Note 12: Commitments and Contingencies
Pending Litigation
The City is a defendant in a number of lawsuits that have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions, when finally adjudicated, will not have any material adverse effect in the financial position of the City. 86 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 13: Fund Balance for Governmental Funds
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances at June 30, 2020, for the governmental funds are non-spendable, restricted, assigned, and unassigned for the following purposes:

Non-spendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. At June 30, 2021, the City had non-spendable fund balance of inventories and prepaid amount of 109,932, deposits of $591,564, and advances to other funds of $7,301,063.

Restricted Fund Balance – includes amounts that are restricted for specific purposes stipulated by resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. At June 30, 2021, the City had restricted fund balances of: $807,489 for capital projects, $442,902 for low & moderate income housing, $730 for parks and recreation, $776,153 for streets & highways, $22,286 for public safety and fire protection, and $10,472 for other purposes.

Assigned Fund Balance - includes amounts that are constrained by the City’s intent by its Council itself or a body or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes that are neither restricted nor committed. The City Council has delegated this authority to the City Manager. In June 2010, the City Council adopted Resolution No. 4548-2010 approving Policy Memorandum No 2010-15 - Fund Balance Policy. The policy aims to help reduce the negative impact on the City in times of economic uncertainty and potential losses of funding from other governmental agencies. City reserves are restricted for one-time purposes. The policy establishes minimum requirements for General Fund non-departmental reserves and provides guidelines for the use of these funds. Appropriation for contingencies is maintained at twenty percent of total General Fund net appropriations for one-time emergencies and economic uncertainties. Excess fund balance at year-end must first be used to replenish the reserve amount at the 20% level.

Accordingly, at June 30, 2021, the City has assigned fund balance of $887,681 for emergency contingency, and $3,550,723 for working capital reserve. The Fund Balance Policy can be changed only by a resolution of the City Council.

Unassigned Fund Balance –The residual classification for the General Fund and includes all amounts not contained in the other classifications. Governmental funds report residual negative balances as unassigned fund balance. At June 30, 2021, the City General Fund had an unassigned fund balance of $5,218,191.
87 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 13: Fund Balance for Governmental Funds (Continued) The schedule on the following page illustrates the City’s fund balances as of June 30, 2021 for its governmental funds:

General Fund
Measure I Special
Revenue Fund
Barstow Fire
Protection District
Special Revenue
Fund
Grants Special
Revenue Fund
City Capital
Projects
Non Major
Government
Funds Total Government
$ 109,932 $ - $ - $ - $ - $ - $ 109,932
591,564 - - - - - 591,564
7,301,063 - - - - 7,301,063 -
8,002,559 - - - - 8,002,559 -
- - - - - 22,286 22,286
- - - - - 776,153 776,153
- - - - - 730 730
- - - - - 442,902 442,902
- - - - 807,489 - 807,489
- - - - - 10,472 10,472
- - - - 807,489 1,252,543 2,060,032
887,681 - - - - - 887,681
3,550,723 - - - - 3,550,723 -
4,438,404 - - - - 4,438,404 -
Other 5,218,191 (1,218,910) (5,049,330) (491,369) - (24,932) (1,566,350) 5,218,191 (1,218,910) (5,049,330) (491,369) - (24,932) (1,566,350) Total Fund Balances $ 17,659,154 $ (1,218,910) $ (5,049,330) $ (491,369) $ 807,489 $ 1,227,611 $ 12,934,645 Restricted Fund Balance for:

Public Safety/Fire Protection
Streets & Highway
Parks and Recreation
Low & Moderate Income Housing
Major Governmental Funds
Capital Projects
Other Purposes
Unassigned Fund Balance
Fund Balances
Nonspendable Fund Balance:

Prepaids & Inventory
Deposits
Advance to Other Funds
Assigned Fund Balance
Emergency Contingency Policy
Working Capital Reserve
Note 14: Restatement of Beginning Fund Balances

Restatements to the beginning net position of the Public Improvement District 91-1 and Landscape Assessment District funds of $96,393 and $114,624, respectively, were made due to implementation of GASB 84 – Fiduciary Activities, in order to present the funds as Custodial funds, rather than Agency funds.

Note 15: Measure Q
In November 2018, the voters approved Measure Q which established a one-cent sales-tax, estimated to generate $7 million in local funding for public safety and citywide services.

Funding generated from the tax is intended to:
 Maintain local fire protection and paramedic services  Provide police services, including neighborhood police patrols, crime prevention and investigations
 Maintain streets and parks, and repair potholes
 Provide quick responses to 9-1-1 emergencies
 Help fund senior and youth programs
 Reduce gang activity and drug-related crimes
88 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 15: Measure Q (Continued)
The revenues received and expenditures relating to Measure “Q” for the current year and previous year are as follows:
2020-2021 2019-2020
Revenues:

Measure "Q" sales tax 8,851,984 $ 7,448,243 $
Use of money and property 3,119 20,993
Total Revenues 8,855,103 7,469,236
Expenditures:

General Government 707,211 601,450
Police 1,739,572 1,633,409
Fire 3,903,826 2,510,558
Community Development 79,964 246,322
Parks 19,983 -
Public Works 240,749 383,822
Total expenditures 6,691,305 5,375,561
Current year excess (deficiency)
of revenues over expenditures 2,160,679 2,072,682
Fund Balance, Beginning of the year 4,130,794 2,058,112 Fund Balance, End of Year $ 6,291,473 $ 4,130,794
Fiscal Year
Note 16: Successor Agency Trust for Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California.

This action impacted the reporting entity of the City of Barstow that previously had reported a redevelopment agency within the reporting entity of the city as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 4653-2012.

Fiduciary Funds – Successor Agency Private Purpose Trust Fund During the year ended June 30, 2021, the following changes occurred in liabilities reported in long-term debt for Fiduciary Funds:

Balance
June 30, 2020 Additions
Deletions/
Adjustments
Balance
June 30, 2021
Due Within One
Year
Public Offerings:
$ - 2,340,000 $ (745,000) $ 1,595,000 $ $ 780,000
$ - 2,340,000 $ (745,000) $ 1,595,000 $ $ 780,000
Fiduciary Funds Successor
Agency Private Purpose Trust
Redevelopment Tax Allocation Bonds:
2004 Tax Allocation Bonds
Total Fiduciary Funds
89 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 16: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) 2004 Tax Allocation Bonds
The Successor Agency’s outstanding bonds from public offerings of $2,340,000, contain a provision that if any event of default should occur, the trustee shall at the written direction of the Bond Owners of a majority in aggregate principal amount outstanding, and upon receipt of the prior written consent of the Bond Insurer, declare the principal of all of the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately.

On July 1, 2004, the Agency issued $8,660,000 in Tax Allocation Bonds, Series 2004, for the purpose of refunding a portion of the Agency’s outstanding Central Redevelopment Project Tax Allocation Bonds, 1994 Series A, which are secured by an irrevocable pledge of the tax revenues payable to the Agency.

The 2004 Tax Allocation Bonds are secured by the Agency increment pledge of certain tax increment revenues to be derived from Project Area I and are payable from the Tax Revenues and such other funds as may become available for such purposes. The notes bear interest payable semiannually at rates ranging from 3.00% to 4.70% per annum, with maturity dates until September 1, 2022.

As of February 1, 2012, the future annual debt service requirements of the 2004 Tax Allocation Bonds were taken over by the Successor Agency to the Redevelopment Agency due to the dissolution of the Barstow Redevelopment Agency per Assembly Bill AB 1X 26 and Assembly Bill AB1484 (See Note 13).

For the current year, principal and interest paid was $835,948. The principal amount outstanding at June 30, 2021 is $1,595,000.

Tax allocation bonds debt service requirements to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2022 780,000 $ 56,245 $ 836,245 $
2023 815,000 19,153 834,153
Total 1,595,000 $ 75,398 $ 1,670,398 $
Significant debt payments authorized in the Recognizable Obligations Payment Schedule (ROPS) by the State of California’s Department of Finance and made in FY 2020-21 from the Redevelopment Property Tax Trust Fund (RPTTF) include the following:

Principal $ 745,000
Interest 90,948
Advance to Low Income Loan 312,931
2004 Bonds:

In addition, a $64,000 administration charge was paid to the City of Barstow and other authorized payments were made for other miscellaneous fees. 90 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 16: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Real Property Held for Resale
In order to improve blighted conditions in the City of Barstow, the City formed the Barstow Redevelopment Agency in 1973. Additionally, the Agency had adopted a Five-Year Implementation Plan for the Project Area I with an established goal of supporting affordable housing and promoting economic development, as well as community, commercial and institutional revitalization. To implement these programs and activities, the Agency acquired real property within the Project Area I to be redeveloped. Three parcels were held in the Land Held for Resale asset account by the Agency totaling $2,224,905.

As of February 1, 2012, the land held for resale was taken over by the Successor Agency to the Redevelopment Agency due to the dissolution of the Barstow Redevelopment Agency per Assembly Bill AB 1X 26 and Assembly Bill AB1484.

Note 17: Negative Fund Balance/Net Position
The following funds have negative fund balance as of June 30, 2021:

Measure I - Special Revenue Fund ($1,218,910) - On September 8, 2015, the City Council approved an interfund loan agreement in the amount of $2 million to cover the costs of completing the Henderson / Cameron Area Road Project. The funds are scheduled to be paid back periodically over the next fiscal years. The loan balance as of June 30, 2021, is $1,700,000.

Barstow Fire Protection District Fund ($5,049,330) - As projected by staff and discussed with the Board, the District’s expenditures exceeded revenues for the fiscal year. The District had reduced its operating expenditures to its lowest, yet sustainable limit. Salaries and benefits continued to be monitored but pension costs remained high with the San Bernardino County Employees’ Retirement Association. Management was aware of ongoing fiscal issues and the Board was also aware of the increasing fund balance deficit.

Grants Fund ($491,369) – The City made major progress payments for reimbursable grant projects for which it had not been reimbursed.

Harvey House Foundation ($14,611) – The Foundation is expected to become more active in the future. It is anticipated that the Foundation will receive revenue to offset the deficit fund balance in the coming years.

COVID-19 Grants ($10,321) – The City’s Covid-19 Grants fund had negative fund balance due to grant revenues that have not been reimbursed from granting agencies. The negative fund balance is expected to be reduced through future grant revenues. 91 CITY OF BARSTOW

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR YEAR ENDED JUNE 30, 2021
Note 18: Barstow Fire Protection District
The Barstow Fire Protection District (District) continues to have a deficit fund balance in fiscal year 2021. In fiscal year 2018, the Board and management studied and reviewed a variety of options to address these concerns.
 Measure Q - In March 2018, the City Council hired a research firm to perform a general sales tax measure feasibility study. As part of this study, a survey was sent to the City of Barstow voters requesting their feedback about establishing an increase in general transaction and use (sales) tax that will fund municipal services. The result of the survey, was presented at the May 15, 2018, Council’s meeting, showing approximately 63-69% of the residents in support of the proposed transaction and use tax measure. On July 16, 2018, the City Council unanimously adopted the resolution and ordinance to put Measure Q on November 2018 ballot. The resolution called for a General Transaction and Use Tax of one percent. The measure passed with 59.28% of the vote.

The City began receiving the Measure Q revenue immediately in July, for fiscal year 2020. So far, the receipts have exceeded the City’s initial estimates. These funds will be used to pay-back the loan and sustain the Fire Department, in addition to supporting police officers, maintaining streets and help fund senior and youth programs.  Beginning in fiscal year 2015, the City began advancing funds to the District to cover operational costs. On October 1, 2018, the City Council approved the amended and restated loan agreement between the City of Barstow and the Barstow Fire Protection for $4,153,696, with a zero percent interest rate. The City advanced an additional $1,243,696 for fiscal year 2020 bringing the amount due the City to $5,817,392. This action formalized the outstanding debt due the City in the event the Measure Q ballot measure was not successful. The Fire Protection district repaid $500,000 in 2021, bringing the amount due at June 20, 2021 to $5,317,392.
 The Board and management will continue to monitor the Barstow Fire Protection District financial situation. Management will keep the Board informed of developing highlights, and concerns regarding the District.
92 REQUIRED SUPPLEMENTARY

INFORMATION
93 THIS PAGE INTENTIONALLY LEFT BLANK
94 CITY OF BARSTOW

REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021

1. BUDGETS AND BUDGETARY ACCOUNTING
a. Budgetary Control and Budgetary Accounting
The City follows these procedures in establishing the budgets.

1. The annual budget is adopted by the City Council after the holding of a hearing and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This “appropriated budget” covers City expenditures in all governmental funds, except debt service and capital improvement projects carried forward from prior years.

3. The City manager is authorized to transfer budgeted amounts between departments. Actual expenditures may not exceed budgeted appropriations at the fund level.

4. Formal budgetary integration is employed as a management control devise during the year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures.

Capital projects appropriations are an automatic supplemental appropriation for next year. All others lapse unless they are encumbered at year end or re-appropriated through the formal budget process.

5. Annual budgets are adopted for the General Fund, all special revenue funds, capital projects funds, and debt service funds, on a basis substantially consistent with accounting principles generally accepted in the United States of America.

Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. 95 &,7<2)%$5672:
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97 CITY OF BARSTOW

BUDGETARY COMPARISON SCHEDULE

BARSTOW FIRE PROTECTION DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (6,371,923) (6,371,923) $ (6,371,923) $ $ - Resources (Inflows):

Taxes 4,790,000 4,790,000 4,932,372 142,372
Licenses and permits 79,865 - 80,912 1,047
Intergovernmental 202,207 100,000 217,370 15,163
Use of money and property 30,000 30,000 470,849 440,849 Miscellaneous 1,800 - 1,800 -
Transfers in 2,959,962 - 3,497,562 537,600
Amounts Available for Appropriations (1,451,923) 1,691,911 2,828,942 1,137,031 Charges to Appropriation (Outflow):

Public safety 8,331,863 4,858,301 7,878,272 453,591
Total Charges to Appropriations 4,858,301 8,331,863 7,878,272 453,591 Budgetary Fund Balance, June 30 $ (6,310,224) $ (6,639,952) $ (5,049,330) $ 1,590,622 See Notes to Required Supplementary Information.
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99 CITY OF BARSTOW

CALPERS COST SHARING PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020 2019 2018 2017 2016
Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Proportion of the Net Pension Liability 26.48990% 0.24588% 0.25121% 0.24901% 0.24341% 0.20999% Proportionate Share of the Net Pension Liability 29,751,671 $ 26,777,913 $ 24,207,207 $ 24,695,340 $ 21,062,463 $ 14,413,454 $ Covered-Employee Payroll $ 10,266,253 $ 9,842,257 $ 10,816,083 $ 11,891,452 $ 10,244,777 $ 10,085,135 Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 289.80% 272.07% 223.81% 207.67% 205.59% 142.92% Plan Fiduciary Net Position 104,679,650 $ 102,046,037 $ - $ - $ $ - $ - Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 77.87% 75.26% 75.26% 73.31% 74.06% 79.82% Notes to Schedule:

Changes of Assumptions: None
Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only six years are shown.

See Notes to Required Supplementary Information.
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SUPPLEMENTARY INFORMATION
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CITY OF BARSTOW

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Accrued interest
Total Assets
Liabilities, Deferred inflows of Resources,
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Total Deferred inflows of Resources
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Total Liabilities, Deferred Inflows of
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(CONTINUED)
$ 73,767 729 $ 10,466 $ $ -
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$ 73,767 730 $ 10,472 $ 77,670 $
Special Revenue Funds
Barstow
Community
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113

CITY OF BARSTOW

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
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Total Assets
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Total Liabilities, Deferred Inflows of
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$ 3,250 $ 1,352,442
- 159,653
- 63,662
- 1,006
$ 1,576,763 3,250 $
$ 3,250 $ 223,684
- 29,656
- 85,491
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CITY OF BARSTOW

BUDGETARY COMPARISON SCHEDULE
COVID-19 Grants
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (132,558) $ (132,558) $ (132,558) $ - Resources (Inflows):

Intergovernmental 988,312 - 925,066 (63,246)
Amounts Available for Appropriation (132,558) 855,754 792,508 (63,246) Charges to Appropriation (Outflow):

General government 361,000 - 360,743 257
Public safety 71,392 - 1,583 69,809
Community development 15,786 - 15,786 -
Transfers out 555,920 - 424,717 131,203
Total Charges to Appropriations 1,004,098 - 802,829 201,269 Budgetary Fund Balance, June 30 $ (132,558) $ (148,344) $ (10,321) $ 138,023 126
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Public Improvement District 91-1 DFFRXQWV IRU WKH UHFHLSW RI DVVHVVPHQWV UHODWLQJ WR 3XEOLF,PSURYHPHQW'LVWULFW
DQGWKHGLVSRVLWLRQRIWKHDVVHVVPHQWVXQGHUWKHWHUPVRIWKHDJUHHPHQW Landscape Assessment District DFFRXQWV IRU WKH UHFHLSW RI DVVHVVPHQW UHODWLQJ WR WKH /DQGVFDSH'LVWULFW DQGWKHGLVSRVLWLRQRIWKHDVVHVVPHQWVXQGHUWKHWHUPVRIWKHDJUHHPHQWV 129

CITY OF BARSTOW, CALIFORNIA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2021
Totals
Assets:

Cash and investments $ 96,538 $ 129,965 $ 226,503
Receivables:

Accounts - 17 17
Accrued interest receivable 57 72 129
Total Assets 96,595 130,054 226,649
Liabilities:

Accounts payable - 58,128 58,128
Total Liabilities - 58,128 58,128
Net Position:

Held trust for other purposes 96,595 71,926 168,521
Total Net Position $ 96,595 $ 71,926 $ 168,521
Public
Improvement
District 91-1
Landscape
Assessment
District
130

CITY OF BARSTOW, CALIFORNIA

COMBINING STATEMENT OF CHANGES IN NET POSITION

ALL CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Totals
Additions:

Investment earnings:

Interest $ 202 $ 254 $ 456
Net investment earnings 202 254 456
Collections for assessment districts - 22,129 22,129
Total Additions 202 22,383 22,585
Deductions:

Administrative expenses - 59,031 59,031
Contractual services - 6,050 6,050
Total Deductions - 65,081 65,081
Net Increase (Decrease) in Fiduciary Net Position 202 (42,698) (42,496) Net Position - Beginning -- -
Restatement of Net Position 96,393 114,624 211,017
Net Position - Beginning, as Restated 96,393 114,624 211,017 Net Position - End of the Year $ 96,595 $ 71,926 $ 168,521 Public
Improvement
District 91-1
Landscape
Assessment
District
131

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132

STATISTICAL SECTION
133

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134
Index Page
Financial Trends 137
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity 142
These schedules contain information to help the reader assess the City’s most significant local revenues sources, property tax and sales tax.

Debt Capacity 150
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability issues additional debt in the future.

Demographic and Economic Information 155
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 157
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.

STATISTICAL SECTION
This part of the City of Barstow’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City. 135

THIS PAGE INTENTIONALLY LEFT BLANK
136
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities:

Net investment in capital assets 72,765,415 $ $ 76,148,543 $ 73,335,444 $ 76,362,833 $ 80,392,246 $ 81,895,762 $ 82,945,793 $ 83,892,867 $ 83,177,722 $ 83,193,605 Restricted 6,609,675 4,937,538 6,079,590 2,245,332 1,912,180 2,122,953 2,815,993 4,321,280 4,856,154 2,060,032Unrestricted 29,552,965 23,982,795 1,591,292 777,665 (4,892,883) (15,011,733) (36,244,461) (40,010,751) (48,226,357) (47,612,389) Total Governmental Activities Net Position $ 108,928,055 $ 105,068,876 $ 81,006,326 $ 79,385,830 $ 77,411,543 $ 69,006,982 $ 49,517,325 $ 48,203,396 $ 39,807,519 $ 37,641,248Business-type Activities:

Net investment in capital assets 14,530,286 $ $ 15,734,425 $ 23,983,537 $ 28,045,832 $ 22,332,269 $ 22,376,249 $ 22,036,073 $ 22,493,982 $ 22,443,932 $ 21,922,426 Unrestricted (4,779,780) (5,850,933) (10,547,818) (14,863,742) (12,179,023) (10,757,834) (9,598,849) (8,538,249) (7,598,760) (5,702,487) Total Business-type Activities Net Position $ 9 9,750,506 $ ,883,492 $ 13,435,719 $ 13,182,090 $ 10,153,246 $ 11,618,415 $ 12,437,224 $ 13,955,733 $ 14,845,172 $ 16,219,939Primary Government:

Net investment in capital assets 87,295,701 $ $ 91,882,968 $ 97,318,981 $ 104,408,665 $ 102,724,515 $ 104,272,011 $ 104,981,866 $ 106,386,849 $ 105,621,654 $ 105,116,031 Restricted 6,609,675 4,937,538 6,079,590 2,245,332 1,912,180 2,122,953 2,815,993 4,321,280 4,856,154 2,060,032Unrestricted 24,773,185 18,131,862 (8,956,526) (14,086,077) (17,071,906) (25,769,567) (45,843,310) (48,549,000) (55,825,117) (53,314,876) Total Primary Government Net Position $ 118,678,561 $ 114,952,368 $ 94,442,045 $ 92,567,920 $ 87,564,789 $ 80,625,397 $ 61,954,549 $ 62,159,129 $ 54,652,691 $ 53,861,187 Last Ten Fiscal Years
(accrual basis of accounting)
Net Position by Component

CITY OF BARSTOW
Fiscal Year
137
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses:

Governmental activities:

General government $ 4,372,577 $ 3,979,122 $ 3,040,319 $ 2,340,584 $ 3,453,207 $ 4,243,537 $ 3,407,933 $ 3,195,349 $ 4,539,158 $ 7,178,050 Public safety 13,910,834 14,781,347 13,263,509 13,655,432 14,618,441 16,507,044 16,367,119 18,968,397 23,887,685 22,274,486Community development 3,233,598 2,646,525 2,068,450 2,458,665 2,567,843 3,328,046 2,868,473 2,522,157 2,959,442 1,835,249Recreation 2,226,201 1,980,078 2,647,726 2,777,589 2,840,457 3,221,250 3,097,501 2,573,335 2,548,681 1,413,896Public works 4,976,071 5,928,990 11,353,600 6,882,670 7,863,741 7,603,005 6,911,603 6,937,058 7,842,090 9,115,346Interest on long-term debt 373,524 132,321 260,017 239,143 188,887 143,333 100,036 55,104 85 51,162 Total Governmental Activities Expenses 29,092,805 29,448,383 32,633,621 28,354,083 31,532,576 35,046,215 32,752,665 34,251,400 41,777,141 41,868,189 Business-type Activities:

Wastewater 4,398,844 3,479,553 3,933,499 5,217,340 5,183,363 3,991,004 4,077,582 3,928,331 5,093,118 4,626,634 Solid Waste 3,989,240 4,095,682 4,605,465 4,350,342 4,588,155 2,376,686 2,526,901 2,216,662 1,575,575 3,901,112Transit Services 2,943,943 2,714,135 2,916,096 2,685,773 127,671 - - - - - Other Enterprise Funds 324,043 336,203 382,573 391,844 473,911 - - - - - Total Business-type Activities Expenses 11,668,230 10,613,413 11,837,633 12,727,366 10,291,033 6,367,690 6,604,483 6,144,993 6,668,693 8,527,746 Total Primary Government Expenses 40,761,035 40,061,796 44,471,254 41,081,449 41,823,609 41,413,905 39,357,148 40,396,393 48,445,834 50,395,935 Program revenues:

Governmental activities:

Charges for services:

General government 1,200,799 1,543,686 1,430,544 1,490,257 1,569,444 1,702,142 1,488,493 2,318,518 1,327,757 1,236,136 Operating grants and contributions 595,522 436,434 861,484 1,702,084 1,045,110 638,283 847,091 1,002,010 859,437 757,387Capital grants and contributions 4,099,782 3,297,685 7,793,386 3,978,333 5,488,502 4,365,660 6,145,461 5,670,702 3,526,055 4,994,774 Total governmental activities program revenues 5,277,805 5,896,103 10, 7,170,674 085,414 8,103,056 6,706,085 8,481,045 8,991,230 5,713,249 6,988,297 Business-type activities:

Charges for services:

Wastewater 4,025,728 4,297,624 4,930,118 5,530,122 5,514,969 5,382,396 5,395,851 5,691,682 5,541,935 5,564,001 Solid Waste 4,062,908 3,785,422 4,040,347 4,023,189 4,121,294 1,926,405 2,027,441 1,971,820 1,988,453 4,208,547Transit Services 688,374 186,984 610,918 169,247 129,803 - - - - - Other business-type activites 34,136 94,831 75,831 69,973 58,451 - - - - - Operating grants and contributions 2,044,518 2,381,538 1,849,657 2,275,972 219,038 524,058 - - - -Capital grants and contributions - - 4,779,757 405,234 - - - - - - Total business-type activities program revenues 10, 10,855,664 16,286,628 746,399 12, 10,043,555 473,737 7,832,859 7,423,292 7,663,502 7,530,388 9,772,548 Total primary government program revenues 16, 16,751,767 26,372,042 024,204 19, 18,146,611 644,411 14, 15, 538,944 16,654,732 904,337 13,243,637 16,760,845 (Continued)

CITY OF BARSTOW
Fiscal Year
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
138
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net revenues (expenses):

Governmental activities (23,196,702) (24,170,578) (22,548,207) (21,183,409) (23,429,520) (28,340,130) (25,103,932) (25,260,170) (36,063,892) (34,879,892) Business-type activities 132,986 (812,566) 4,448,995 ( ( 253,629) 247,478) 1,465,169 818,809 1,518,509 861,695 1,244,802 Total net revenues (expenses) (24,009,268) (24,037,592) (18,099,212) (21,437,038) (23,676,998) (26,874,961) (24,285,123) (23,741,661) (35,202,197) (33,635,090) General Revenues and Other Changes in Net Position:

Governmental activities:

Taxes:

Property taxes 9,581,086 8,750,763 7,288,665 7,398,978 7,441,119 7,970,015 9,108,160 8,774,293 9,252,006 9,796,572 Transient occupancy taxes 2,626,389 2,649,694 2,748,763 2,892,232 2,857,509 3,056,078 3,147,207 3,320,952 2,855,796 3,436,464Sales taxes 6,942,387 7,346,732 7,532,540 7,259,449 7,670,993 7,166,274 7,239,830 9,690,333 13,527,079 16,387,048Franchise taxes N/A N/A N/A N/A N/A N/A N/A 1,023,994 1,077,373 1,175,996Business License taxes N/A N/A N/A N/A N/A N/A N/A 233,526 220,930 222,605Other taxes 1,213,263 1,126,099 1,178,629 1,211,911 1,265,262 1,264,374 1,308,951 59,958 64,808 55,188 Motor vehicle in lieu, unrestricted 24,459 - - - - - - - - - Use of money and property 1,297,074 328,226 693,341 471,980 482,812 278,153 202,328 242,147 318,440 1,048,338 Other general revenues 91,654 109,885 141,895 328,363 199,570 200,675 269,350 601,038 352,124 591,410Transfers - - - - 1,537,968 - - - - Extraordinary item - gain due to dissolution of RDA 311,238 - - - - - - - - - Total Governmental Activities 22,087,550 20,311,399 19,583,833 19,562,913 21,455,233 19,935,569 21,275,826 23,946,241 27,668,555 32,713,621 Business-type activities:

Investment Income
Other revenue - - - - - - - - 27,744 129,965
Transfers - - - - (2,781,366) - - - -
Total Business-type Activities - - - - (2,781,366) - - - 27,744 129,965 Total Primary Government 22,087,550 20,311,399 19,583,833 19,562,913 18,673,867 19,935,569 21,275,826 23,946,241 27,696,299 32,843,586 Changes in Net Position:

Governmental activities (3, (1,109,152) 859,179) (2,964,374) (1,620,496) (1,974,287) (8,404,561) (3,828,106) (1,313,929) (8,395,337) (2,166,271) Business-type activities 132,986 (812,566) 4,448,995 ( (3, 253,629) 1,465,169 028,844) 818,809 1,518,509 889,439 1,374,767 Total Primary Government (1,921,718) $ ( $ 1 3,726,193) $ ( ,484,621 $ ( 1,874,125) $ ( 5,003,131) $ ( 6,939,392) $ 3,009,297) $ ( 204,580 $ 7,505,898) $ (791,504) Fiscal Year
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position (Continued)

CITY OF BARSTOW
139
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund:

ReservedNonspendable* $ 6,025,426 $ 5,819,857 $ 5,391,889 $ 10,843,398 $ 8,680,778 $ 7,619,282 $ 5,183,492 $ 8,111,586 $ 9,955,211 $ 8,002,559 Restricted* - - - - - - - - - -
Assigned* - - - - - - - 4, - 406,560 4,438,404
Unreserved/Unassigned* 25,449,432 22,749,055 21,445,217 14,466,701 12,063,100 9,222,550 9,163,739 5,843,014 (479,717) 5,218,191 Total General Fund $ 31,474,858 $ 28,568,912 $ 26,837,106 $ 25,310,099 $ 20,743,878 $ 16,841,832 $ 14,347,231 $ 13,954,600 $ 13,882,054 $ 17,659,154 All Other Governmental Funds:

ReservedNonspendable* $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Restricted* 6,935,670 15,283,195 6,266,281 2,269,521 1,941,169 2,122,945 2,232,689 4,376,375 4,856,154 2,060,032 Assigned* - - - - - - - - -
Unreserved/Unassigned*, reported in:

Special revenue funds ( - 229,905) (4,178,949) (1,203,369) (3,645,638) (4,363,879) (5,509,987) (8,192,534) (8,168,382) (6,784,541) Total all other governmental funds $ 6,935,670 $ 15,053,290 $ 2,087,332 $ 1,066,152 $ (1,704,469) $ (2,240,934) $ (3,277,298) $ (3,816,159) $ (3,312,228) $ (4,724,509) Fiscal Year
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fund Balances of Governmental Funds

CITY OF BARSTOW
Source: Barstow Finance Department* FY11 Implementation of GASB 54 Fund Balance Classifications.**The Hospital Fund for FY09 & FY10 was not included with the General Fund balances but shown as a separate special revenue fund. For comparison purposes, the Hospital Fund (now labeled General Fund II), is combined 140
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues:

Taxes $ 20,387,584 $ 19,873,288 $ 18,558,246 $ 18,540,422 $ 19,035,503 $ 19,265,710 $ 20,748,728 $ 22,592,237 $ 26,994,270 $ 31,071,466Licenses and permits 196,868 204,981 472,222 429,256 509,323 574,297 561,068 490,306 442,883 536,798Fines and forfeitures 106,341 104,690 142,409 125,915 140,692 216,117 78,862 114,564 132,885 89,923From other agencies 4,915,206 3,907,154 5,075,232 9,278,029 6,713,437 5,161,172 7,365,874 6,051,941 5,818,278 5,535,566Charges for services 677,688 1,099,480 750,382 1,281,351 808,528 712,690 655,742 1,053,338 444,041 328,465Use of Money and Property 990,102 328,226 768,427 586,238 579,736 430,896 350,328 924,400 354,439 1,084,648Other 91,654 71,385 82,362 115,621 80,491 68,327 136,635 472,340 352,124 592,683 Total Revenues 27,365,443 25,589,204 25,849,280 30,356,832 27,867,710 26,429,209 29,897,237 31,699,126 34,538,920 39,239,549 Expenditures
Current:

General government 3,076,341 3,061,475 2,882,514 2,934,731 3,350,641 3,633,918 3,197,895 3,964,134 3,271,395 5,750,679Public safety 13,338,769 13,427,720 13,473,842 14,493,181 14,032,923 14,419,752 15,862,429 17,253,463 18,655,220 18,784,049Public works 2,746,018 3,481,396 3,108,045 3,050,005 3,274,837 3,418,593 3,321,773 3,162,077 3,854,666 5,042,790Recreation 1,547,172 1,520,643 2,333,991 2,380,982 2,541,381 2,575,293 2,628,551 2,429,324 2,188,673 1,007,100Community development 3,035,640 2,552,355 2,147,003 2,427,110 2,573,815 2,839,218 2,609,936 2,555,676 2,626,193 1,605,860 Debt service:

Principal retirement 510,000 1, - 070,000 1,100,000 1,145,000 1,190,000 1,249,026 1,290,000 1,826,578 2,114,295Interest and fiscal charges 382,583 447,390 386,172 356,970 311,543 262,775 212,818 167,854 112,835 163,912 Capital Outlay 9,775,072 7,233,394 15,212,059 6,162,422 6,929,898 2,652,301 4,176,662 3,372,692 1,890,389 2,532,983 Total Expenditures 34,411,595 31,724,373 40,613,626 32,905,401 34,160,038 30,991,850 33,259,090 34,195,220 34,425,949 37,001,668Excess (Deficiency) of Revenues Over (Under) Expenditures (7,046,152) (6,135,169) (14,764,346) (2,548,569) (6,292,328) (4,562,641) (3,361,853) (2,496,094) 112,971 2,237,881 Other financing sources (uses):

Transfers in 24,557,219 5,596,067 13,715,655 5,401,533 7,939,085 3,486,269 4,950,785 4,645,038 4,667,368 8,189,791Transfers out (24,557,219) (5,596,067) (13,715,655) (5,401,533) (9,288,600) (3,486,269) (4,950,785) (4,645,038) (4,667,368) (8,189,791)Proceeds from sale of assets 41,770 23,296 33,374 382 24,332 - 32,306 720,188 318,414 126,938Capital leases 264,473 651,548 33,208 - - 124,130 642,996 - - -Issuance of bonds 9,770,000 - - - - - - - -Issuance premium 901,999 - - - - - - - -Extraordinary loss on dissolution of RDA (7,023,762) - - - - - - - - -Transfer of residual equity due to termination (7,023,762) - - - 280,669 - - - - - Total Other Financing Sources (Uses) (13,741,281) 11,346,843 66,582 382 (1,044,514) 124,130 675,302 720,188 318,414 126,938Net Change in Fund Balances $ (20,787,433) $ 5,211,674 $ (14,697,764) $ (2,548,187) $ (7,336,842) $ (4,438,511) $ (2,686,551) $ (1,775,906) $ 431,385 $ 2,364,819 Debt service as a percentage of noncapital expenditures 3.6% 0.7% 5.7% 5.4% 5.3% 5.1% 5.0% 4.7% 6.0% 6.6% Fiscal Year
Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds

CITY OF BARSTOW
141
Fiscal Year
Ended SBE City
June 30 Secured Unsecured Nonunitary Net Value % Change 2012 1,105,173,976 $ 105,571,293 $ 2,186,442 $ 1,212,931,711 $ -2.61% 2013 1,092,408,332 104,914,213 2,165,193 1,199,487,738 -1.11% 2014 1,039,983,380 102,817,129 677,094 1,143,477,603 -4.67% 2015 1,051,514,240 103,609,217 562,232 1,155,685,689 1.07% 2016 1,075,574,231 100,176,764 1,091,097 1,176,842,092 1.83% 2017 1,179,227,750 92,848,517 1,090,047 1,273,166,314 8.18% 2018 1,199,023,057 87,038,753 1,174,083 1,287,235,893 1.11% 2019 1,277,320,622 97,633,037 1,100,258 1,376,053,917 6.90% 2020 1,364,148,974 96,231,522 1,041,131 1,461,421,627 6.20% 2021 1,406,623,300 99,619,193 986,567 1,507,229,060 3.13% Source: HdL Coren & Cone/San Bernardino Co Assessor 2011/12-2020/21 Combined Tax Rolls *Exempt values are not included in Total Assessed Value.

Last Ten Fiscal Years
Assessed Value of Taxable Property

CITY OF BARSTOW
City of Barstow
142

CITY OF BARSTOW
Assessed Value of Taxable Property by Class
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property Vacant Land SBE Non Unitary Unsecured Other
Total Taxable
Assessed Value
(a)
Total
Direct
Tax Rate
2011-12 537,307,938 $ 344,666,172 $ 33,358,242 $ $ 2,186,442 168,757,467 $ $ 21,084,157 105,571,293 $ 1, $ 0.410% 212,931,711 2012-13 520,704,582 354,140,448 30,209,573 173,103,339 2,165,193 104,914,213 14,250,390 1,199,487,738 0.404% 2013-14 504,674,199 342,399,149 29,304,358 150,618,871 677,094 102,817,129 12,986,803 1,143,477,603 0.150% 2014-15 525,855,023 344,691,557 29,536,256 99,024,673 562,232 103,609,217 52,406,731 1,155,685,689 0.150% 2015-16 541,740,544 352,020,034 28,283,445 100,095,186 1,091,097 100,176,764 53,435,022 1,176,842,092 0.150% 2016-17 558,991,827 436,522,540 28,978,583 100,797,408 1,090,047 92,848,517 53,937,392 1,273,166,314 0.150% 2017-18 572,637,923 442,244,817 29,637,912 101,055,206 1,174,083 87,038,753 53,447,196 1,287,235,890 0.150% 2018-19 601,437,825 489,871,146 29,041,847 103,502,172 1,100,258 97,633,037 53,467,632 1,376,053,917 0.150% 2019-20 651,254,179 512,323,358 30,132,457 115,105,159 1,041,131 96,231,522 55,333,821 1,461,421,627 0.150% 2020-21 675,586,704 541,992,444 28,785,991 104,526,446 986,567 99,619,193 55,731,715 1,507,229,060 0.150% Source: HdL Coren & Cone/San Bernardino Co Assessor 2011/12-2020/21 Combined Tax Rolls Notes:
(a) Exempt values are not included in Total Assessed Value.

Last Ten Fiscal Years
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 $1,000,000,000
$1,100,000,000
$1,200,000,000
$1,300,000,000
$1,400,000,000
$1,500,000,000
$1,600,000,000
FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 7 143
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Direct & Overlapping (2) Tax Rates
Basic Levy (1) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000Barstow Unified School Bond 0.0401 0.0393 0.0370 0.0474 0.0329 0.0394 0.0308 0.1245 0.0451 0.0844Mojave Water Agency 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 0.1675 Total Direct & Overlapping Rates $ 1.2076 $ 1.2068 1.2045$ 1.2149$ $ 1.2004 1.2069$ 1.1983$ 1.2920$ $ 1.2126 $ 1.2519 City's Share of 1% Levy Per Prop 13 (3) 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974 0.14974General Obligation Debt Rate Redevelopment Rate (4) 1.0000 1.0000 N/A N/A N/A N/A N/A N/A N/A N/A Total Direct Rate (5) 0.41035 0.40408 0.14996 0.14998 0.15012 0.15012 0.15015 0.15016 0.015001 0.015005Source: San Bernardino County Assessor/Hdl, Coren & Cone Last Ten Fiscal Years
(Rate per $100 of assessed value)
Direct and Overlapping Property Tax Rates

CITY OF BARSTOW
Fiscal Year
NOTE:(1) In 1978, California voters passed Proposition 13 which sets 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 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% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures.(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.(5) Total Direct Rate is the weighted average of all individual direct rates appled to the City. Beginning in 2013/2014 the Total Direct Rate no longer includes revenue generated from teh former redevelopment taxrate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. for the purposes of this report, residual revenue is assumed to be distributed to the City in the same 144
2020-21 % of
Property Owner Primary Land Use Assessed Valuation Total (1) 1 FRO2MO Barstow LLC Shopping Center $120,285,135 7.98% 2 Hospital of Barstow Inc. Hospital 49,441,213 3.28%
3 Walmart Inc. Commercial Store 32,260,371 2.14%
4 TVL Properties LLC Supermarket 13,453,030 0.89%
5 Pilot Travel Centers LLC Travel Center 12,986,311 0.86% 6 Lee Family Irrevocable Trust Hotel 12,730,959 0.84%
7 Fred and Robin Rosenberg Family LP Commercial Properties 12,262,648 0.81% 8 Desert Heights LP Apartments 12,021,725 0.80%
9 Hospitality Express II LLC Hotel 11,787,307 0.78%
10 Ayres Hotel Barstow LP Hotel 11,220,000 0.74%
11 Montara 158 LP Apartments 10,200,000 0.68%
12 Home Depot USA Inc. Commercial Store 10,082,320 0.67% 13 T T Group Inc. Shopping Center 9,718,362 0.64%
14 Elite Experience Inc. Hotel 9,300,782 0.62%
15 Barstow Retail Partners LLC Shopping Center 8,976,741 0.60% 16 HPT TA Properties Trust Travel Center 7,759,000 0.51% 17 Loves Country Stores of California Travel Center 7,478,353 0.50% 18 Villa Vista Apartments 6,668,681 0.44%
19 Principal Holdings LLC Motel 6,150,000 0.41%
20 Barstow Outlet Shopping Center 5,973,300 0.40%
$352,019,375 24.60%
(1) 2020-21 Local Secured Assessed Valuation: $1,507,229,060 Source: California Municipal Statistics, Inc.

CITY OF BARSTOW
Largest 2020-21 Local Secured Taxpayers
145
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Owner Value Value Value Value
Ayers Hotel Barstow LP $ 0.74% 11,220,000
Barstow Outlet LLC 0.40% 5,973,300 $ 10,422,003 0.86%
Compass Bank 13,649,500 1.13%
Desert Heights LLC 0.80% 12,021,725 11,380,220 0.94%
Fred and Robin Rosenberg Family Limited 0.81% 12,262,648 FRO2MO Barstow LLC 120,285,135 7.98%
Home Depot USA Inc 10,082,320 0.67% 10,496,528 0.87%
Hospital of Barstow Inc 3.28% 49,441,213 18,422,807 1.52% Hospitality Express II LLC 0.78% 11,787,307 10,422,281 0.86% Lee Family Irrevocable Trust 0.84% 12,730,959
Pilot Travel Center LLC 0.86% 12,986,311
Suk Hee Suh 10,823,512 0.89%
Tanger Properties LP 24,640,388 2.03%
TVL Properties 0.89% 13,453,030 9,419,191 0.78%
Walmart Real Estate Business Trust 2.14% 32,260,371
Meruelo Maddux Properties 13,388,052 1.10%
TOTAL OF TOP TEN: $ 304,504,319 20.20% 133,064,482 $ 10.97% CITY TOTAL $ 1,212,931,711 1,507,229,060 $
**Listed alphabetically
Source: Hdl Coren & Cone-San Bernardino County Assessor

CITY OF BARSTOW
2021 2012
Current Year and Ten Years Ago
Principal Property Tax Payers
146
Fiscal Taxes Levied Collected in
Year Ended for the Percent Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2012 $ 4,609,714 $ 4,446,347 96% 197,473 $ $ 4,643,820 101% 2013 4,587,850 4,415,853 96% 182,397 4,598,250 100%
2014 4,511,674 4,410,513 98% 167,577 4,578,090 101%
2015 4,598,336 4,506,775 98% 103,403 4,610,178 100%
2016 4,730,324 4,634,977 98% 72,106 4,707,083 100%
2017 4,806,434 4,729,391 98% 72,314 4,801,705 100%
2018 4,812,206 4,753,763 99% 57,650 4,811,413 100%
2019 4,980,727 4,901,322 98% 50,063 4,951,385 99%
2020 5,241,332 5,145,125 98% 55,887 5,201,012 99%
2021 5,365,780 5,355,407 100% 5, - 355,407 100%
Source: San Bernardino Auditor-Controller Recorder
Includes Barstow Park & Recreation and Barstow Fire Protection District Collected within the
Fiscal Year of Levy Total Collections to Date
Last Ten Fiscal Years
Property Tax Levies and Collections
City of Barstow
147
Business Name Business Category
Arco AM PM Service Stations
Barstow Shell Service Stations
Chevron Service Stations
Circle K Service Stations
Coach Women's Apparel
Del Taco Quick-Service Restaurants
Food 4 Less Grocery Stores
Home Depot Building Materials
In N Out Burger Quick-Service Restaurants
Lenwood Arco Service Stations
Loves Travel Stop 374 Service Stations
Marshalls Family Apparel
McDonalds Quick-Service Restaurants
Michael Kors Family Apparel
Mojave Ford/Nissan of Barstow New Motor Vehicle Dealers Mojave Toyota Chrysler Dodge Jeep Ram New Motor Vehicle Dealers MSC Industrial Supply Building Materials
Nike Shoe Stores
Old Navy Family Apparel
Pilot Travel Center Service Stations
Stater Bros Grocery Stores
Terrible Herbst Convenience Stores/Liquor
Travelcenters of America Service Stations
Vans Specialty Stores
Walmart Discount Dept Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts = 68.18% Period: July 2020 Thru March 2021
Source: Hinderliter, de Llamas & Associates, State Board of Equalization For the Fiscal Year 2021
Top 25 Sales Tax Producers (Alphabetically)

CITY OF BARSTOW
148
Business Name Business Category
Arco Service Stations
Arco AM PM Service Stations
Barstow Shell Service Stations
Calvin Klein Family Apparel
Chevron Service Stations
Circle K Service Stations
Coach Women's Apparel
Del Taco Quick-Service Restaurants
Home Depot Building Materials
In N Out Burgers Quick-Service Restaurants
Loves Travel Stop Service Stations
McDonalds Quick-Service Restaurants
Pilot Travel Center Service Stations
Ralph Lauren Family Apparel
Reebok Shoe Stores
Shell Service Stations
Soutar's Chrysler Dodge Jeep Ram & Toyota New Motor Vehicle Dealers Soutar's Ford/Nissan New Motor Vehicle Dealers
Terrible Herbst Convenience Stores/Liquor
Thrifty Oil Service Stations
Travel Centers of America Service Stations
Union 76 Service Stations
Valero Service Stations
Valmont Newmark Heavy Industrial
Walmart Discount Dept Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts = 68.80% Period: July 2011 thru June 2012
Source: Hinderliter, de Llamas & Associates, State Board of Equalization For the Fiscal Year 2012
Top 25 Sales Tax Producers (Alphabetically)

CITY OF BARSTOW
149
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Apparel Stores $ 121,561 $ 136,098 $ 133,682 $ 132,209 $ 129,936 $ 131,139 $ 126,807 $ 121,530 $ 107,223 $ 57,480Food Stores 11,696 11,826 18,756 27,229 25,860 25,047 25,129 27,425 24,378 23,631Eating & Drinking Places 74,629 72,014 73,539 78,836 81,830 86,487 88,908 89,891 93,254 81,362Auto Dealers & Supplies 30,721 31,009 27,338 27,153 36,460 40,235 38,661 36,005 32,674 36,486Service Stations 263,969 285,795 292,409 301,169 262,870 251,746 251,447 273,455 254,498 197,752Other Retail Stores 94,021 101,423 101,714 103,093 102,123 100,869 106,946 110,707 111,949 131,226All Other Outlets 95,115 79,690 86,207 86,831 80,706 82,819 89,560 93,786 103,625 120,620Total $ 674,090 $ 735,477 $ 733,645 $ 756,520 $ 719,785 $ 718,342 $ 727,458 $ 752,799 $ 727,601 $ 648,557 Source: State of California Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office and The Hdl Companies Note: Due to confidentiality issues, the names of the ten largest revneue payers are not available. The categoriespresented are intended to provide alternate information regarding the sources of the City's revenue.

Last Ten Calendar Years (in thousands of dollars)
Taxable Sales by Category

CITY OF BARSTOW
Fiscal Year
Adjusted for Economic Data
150
Fiscal Year Tax Total Wastewater Wastewater Total Total Percentage Debt Ended Allocation Measure I Capital Lease Governmental Certificates of Capital Lease Business-type Primary of Personal Per June 30 Bonds Loans TRIP Agreements Activities Participation Agreements Activities Government Income 1 Capita 1 2012 $ - $ - $ - $ 3,197,150 $ 3,197,150 $ 2,028,159 $ 2,137,571 $ 4,165,730 $ 7,362,880 37.54% $ 3202013 - 10, - 671,999 3,337,511 14,009,510 1,766,808 1,968,975 3,735,783 17,745,293 87.23% 765.94 2014 - - 9, 2, 849,249 874,809 12,724,058 1,500,766 1,757,803 3,258,569 15,982,627 83.27% 686.192015 - - 8, 2, 276,499 574,443 10,850,942 1,225,279 1,544,289 2,769,568 13,620,510 69.61% 585 2016 - - 7,018,749 2,092,667 9,111,416 935,472 1,312,813 2,248,285 11,359,701 63.48% 4662017 - - 5,715,999 1,625,443 7,341,442 636,157 1,096,638 1,732,795 9,074,237 52.00% 3742018 - - 4,363,249 1,825,131 6,188,380 327,402 887,323 1,214,725 7,403,105 45.33% 3052019 - - 2,960,499 1,195,399 4,155,898 - 598,645 598,645 4,754,543 26.66% 1972020 - - 1,507,749 1,027,235 2,534,984 - 349,491 349,491 2,884,475 15.10% 1192021 - 1,594,224 1,594,224 47,057 47,057 1,641,281 8.42% 68 1 These ratios are calculated using personal income and population for the prior calendar year
Governmental Activities Business-type
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type

CITY OF BARSTOW
151
Fiscal Year Tax Percent of
Ended Allocation Assessed Per
June 30 Bonds Value 1 Capita
2012 0.00% - -
2013 0.00% - -
2014 0.00% - -
2015 0.00% - -
2016 0.00% - -
2017 0.00% - -
2018 0.00% - -
2019 0.00% - -
2020 0.00% - -
2021 0.00% - -
Source: Barstow Finance Department
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Last Ten Fiscal Years
Ratio of General Bonded Debt Outstanding

CITY OF BARSTOW
152
2020-21 Assessed Valuation: $1,507,229,060
Total Debt Percentage City's share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 Applicable (1) Debt 6/30/21 Barstow Unified School District $ 65.915% 22,798,257 34,587,358 $ Mojave Water Agency 3,290,000 3.769% 124,000
City of Barstow-No debt - 100.000% -
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 22,922,257
OVERLAPPING GENERAL FUND OBLIGATION DEBT:

San Bernardino County General Fund Obligations $ 0.602% 1,288,852 214,095,000 $ San Bernardino County Pension Obligations Bonds 0.602% 1,088,570 180,825,585 San Bernardino County Flood Control District General Fund Obligations 0. 51,360,000 602% 309,187 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 2,686,609 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 1,595,000 100.00% $ 1,595,000 TOTAL DIRECT DEBT $ -
TOTAL OVERLAPPING DEBT $ 27,203,866
COMBINED TOTAL DEBT $ 27,203,866 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the protion of the overalpping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations Ratios to 2020-21 Assessed Valuation:

Direct Debt 0.00%
Total Direct and Overlapping Tax and Assessment Debt 1.52% Combined Total Debt 1.80%
Ratios to Redevelopment Successor Agency Incremental Valuation $614,523,247):

Total Overlapping Tax Increment Debt 0.26%
Source: California Municipal Statistics, Inc.

CITY OF BARSTOW
Direct & Overlapping Governmental Activities Debt
As of June 30, 2021
153
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed valuation $ 1,212,931,711 $ 1,199,487,738 $ 1,143,477,603 $ 1,155,685,689 $ 1,176,842,092 $ 1,273,166,314 $ 1,287,235,890 $ 1,376,053,917 $ 1,461,421,627 $ 1,507,229,060 Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation 303,232,928 299,871,935 285,869,401 288,921,422 294,210,523 318,291,579 321,808,973 344,013,479 365,355,407 376,807,265 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 44,980,790 45,484,939 42,880,410 43,338,213 44,131,578 47,743,737 48,271,346 51,602,022 54,803,311 56,521,090 Legal debt margin 45,484,939 $ 44,980,790 $ 42,880,410 $ 43,338,213 $ 44,131,578 $ 47,743,737 $ 48,271,346 $ 51,602,022 $ 54,803,311 $ 56,521,090 $ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Source: Barstow Department of Finance
County Tax Assessor's Office
Fiscal Year
Last Ten Fiscal Years
Legal Debt Margin Information

CITY OF BARSTOW
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year,each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to 154
the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Fiscal Year
Ended Tax Debt Service (1)
Principal and
June 30 Increment (1) Interest Coverage
2012 - - -
2013 - - -
2014 - - -
2015 - - -
2016 - - -
2017 - - -
2018 - - -
2019 - - -
2020 - - -
2021 - - -
Source: Barstow Finance Department
Note: Details regarding the city's outstanding debt can be found in the notes to the fina statements. Operating expenses do not include interest or depreciation expenses (1) Amounts have been rounded to the nearest thousand.

Tax Allocation Bonds
Last Ten Fiscal Years
Pledged-Revenue Coverage

CITY OF BARSTOW
155
Calendar Population Personal Income Per Capita Unemployment Median Age % of Pop 25+ with High
School Degree
% of Pop 25+ with
Bachelor's Degree
Year (1) (in thousands) Income Rate (2) Median Age High School Degree Bachelor's Degree 2011 23,019 $ 451,449 $ 19,612 16.4% 33.1 78.9% 9.4%
2012 23,168 471,330 20,344 12.0% 33.3 81.0% 9.2%
2013 23,292 447,043 19,193 10.5% 32.9 79.8% 9.7%
2014 23,265 455,250 19,568 7.5% 33.7 82.4% 10.6%
2015 24,360 435,931 17,895 6.0% 31.2 80.3% 11.8%
2016 24,248 423,134 17,450 5.3% 30.2 79.8% 11.5%
2017 24,248 396,041 16,332 6.9% 29.3 77.3% 11.7%
2018 24,150 430,713 17,834 5.9% 30.0 78.4% 11.7%
2019 24,268 463,700 19,107 5.2% 29.8 79.3% 11.3%
2020 24,205 471,728 19,488 11.4% 30.1 78.2% 9.2%
Sources: HdL Coren & Cone
(1) Population: California State Department of Finance(2) Unemployment Data: California Employment Development Department

CITY OF BARSTOW
Demographic and Economic Statistics
Last Ten Calendar Years

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020
Unemployment Rate
$16,000$16,500$17,000$17,500$18,000$18,500$19,000$19,500$20,000$20,500$21,000 2012 2013 2014 2015 2016 2017 2018 2019 2020
Personal Income per Capita
156

CITY OF BARSTOW
Principal Employers
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Ft. Irwin National Training Center* 60.3% 8,900 5,665 46.5% Marine Corps Logistics Base** 11.5% 1,845 1,700 15.1%
BNSF Railroad 6.8% 1,000 1,000 8.2%
Barstow Unified School District 6.5% 617 958 5.1%
Outlets at Barstow (Formerly Tanger Outlet Stores) 3.3% 400 480 3.3% Raytheon Technical Services Co, LLC* 2.7% 498 400 4.1%
Barstow Community College 2.6% - 377 0.0%
Barstow Community Hospital 2.4% 290 348 2.4%
Wal-Mart 2.1% - 305 0.0%
Silver Valley School District* 2.0% - 300 0.0%
Northrup Grunman (Vernell until 2002)* 0.0% 1,152 - 9.5% San Bernardino County 0.0% 300 - 2.5%
IAP World Services* 0.0% 412 - 3.4%
Total Top Employers 14,768 100.0% 12,179 100.0%
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2011, previously published CAFR
*Employers outside of City Limits
(1) Total City Labor Force is provided by EDD Labor Force Data.

Note: Fort Irwin National Training Center employee headcount includes current active employees.

Does not include soldiers on 10 rotations a year.
2020 and Ten Years Ago
2020 2011
** Total civilian employee headcount includes Marine Corps Logistics Base, Barstow Last Ten Calendar Years
157
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General government* 21 13 15 17 16 22 16 16 26.5 24.5
Police Safety
Sworn 41 37 37 38 38 41 37 38 46 46
Non-Sworn 13 17 16 19 19 13 18 18 20 20
Fire Safety**
Sworn 23 23 23 28 20 20 20 20 27 28
Non-Sworn 1 1 1 1 1 1 1 11 2
Recreation 18 16 14 17 17 19 17 17 11 2.5
Community Service 31 36 33 26 21 32 21 24 23 29
Community Development 10 10 12 10 16 10 15 10 11 7
Redevelopment - - - - - - - 2 - -
Solid Waste 2 2 3 1 1 1 1 111
Wastewater 9 8 9 8 11 11 11 10 11 11
Transit 1 1 - - - - - 1 - -
Total 170 164 163 167 160 157 155 170 177.5 171.0
* Includes 7 Elected Officials
**Fire District added November 17, 2010
Source: City of Barstow Adopted Budget-Authorized Positions Full-Time Employees as of June 30
Last Ten Fiscal Years
by Function
Full-time and Part-time City Employees

CITY OF BARSTOW
158
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:

Arrests 2,672 2,959 2,911 2,762 2,625 2,795 2463 2410 2235 2198 Parking citations issued 266 489 522 201 286 501 408 299 1110 579 Fire Services:

Fire Calls 140 199 188 222** 242 311 212 340 576 499
Medical Aid Calls 3,636 3,452 4,050 4,079** 4,597 5,380 4031 5165 5351 5118 Parks and recreation:

Number of recreation classes 16 14 14 14 14 14 10 10 6 13 Number of facility rentals 139 68 70 99 85 64 52 50 6 27 Sewer:

New connections 30 17 4 2 5 4 4 5 8 6
Average/Millions of
Gallons Sewage Treatment 2.13 2.11 2.11 2.11 1.98 2.03 2.06 2.13 2.15 2.19 Building Department:

Permits 663 870 533 879 720 1,106 905 710 657 686
Fire Permits
Fire Permits * * * 61 - - - - - -
Construction Fire Permits# 88 99 94 93 97 78
Annual Permit to Operate# 323 347 335 323 287 313
Source: City of Barstow
* Data not available
**The City of Barstow assumed dispatching services from County of San Bernardino. Incident tracking has changed due to enhanced software.
# Permits now processed and tracked through the Building & Planning Department of the City of Barstow.

Fiscal Year
Last Ten Fiscal Years
by Function
Operating Indicators

CITY OF BARSTOW
159
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:

Stations 2 2 2 2 2 2 2 2 2 2
Fire District **
Stations 3 3 3 3 3 3 3 3 3 3
Public Works:

Streets (miles) 91 91 91 90 91 91 91 91 91 104.4
Streetlights 1,081 1,081 1,081 1,081 1,081 1,001 1081 1081 1053 1053 Traffic signals 21 22 22 21 22 22 22 22 22 22
Parks and Recreation:

Parks 10 10 10 10 10 10 10 10 10 10
Community pools 1 1 1 1 1 1 1 1 1 1
Community centers 3 3 3 3 3 3 3 3 3 3
Wastewater:

Sanitary sewers (miles) 117 117 113 117 113 113 113 113 123 123 Storm sewers (miles) 15 16 16 15 16 16 16 16 16 16
Maximum daily treatment capacity
(millions of gallons per day) 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 Source: City of Barstow
* Data not available
**Fire District added November 17, 2010
Last Ten Fiscal Years
by Function
Capital Asset Statistics

CITY OF BARSTOW
160