Agenda — Ceres City Council, June 26, 2023 (part 1 of 4)

AGENDA

CITY COUNCIL REGULAR MEETING

CITY OF CERES, CALIFORNIA

City Council Chambers, 2701 Fourth Street
Monday, June 26, 2023 at 6:00 p.m.

Mailing Address: Ceres City Hall, 2220 Magnolia Street, Ceres, CA 95307-3292 Phone: (209) 538-5700 Fax: (209) 538-5780

CALL TO ORDER

Mayor Lopez

ROLL CALL

Mayor: Javier Lopez
Vice Mayor: Bret Silveira (District 3)
Councilmembers: James Casey (District 1); Rosalinda L. Vierra (District 2); Daniel A.

Martinez (District 4)

INVOCATION

Invocation by Tim Giannosa, Big Valley Grace Community Church.

PLEDGE OF ALLEGIANCE

Pledge of Allegiance led by Mayor Lopez.

Click this link to join the webinar:
https://us02web.zoom.us/j/84664264055?pwd=bndPUEZ3WC9wQjFabEI5SUFTQjFpQT09

Webinar ID: 846 6426 4055; Passcode: 015302; or Dial: (669) 900-6833

REMOTE PUBLIC COMMENT IS ALSO AVAILABLE FOR THE CITY COUNCIL MEETING BY EMAILING THE CITY CLERK AT [email protected] BEFORE 4:00 PM THE DAY OF THE MEETING. INCLUDE THE AGENDA ITEM NUMBER OR PUBLIC COMMENT PERIOD IN THE SUBJECT LINE OF THE EMAIL. THE CLERK MAY READ WRITTEN COMMENTS INTO THE RECORD, IF SPECIFICALLY REQUESTED TO DO SO AT THE BEGINNING OF YOUR EMAIL. YOUR

WRITTEN COMMENT WILL BE DISTRIBUTED TO THE CITY COUNCIL AND KEPT ON FILE AS PART OF THE OFFICIAL RECORD OF THE COUNCIL MEETING.

*If you have any questions on how to attend virtually or are encountering difficulties connecting to the meeting, please contact the City Clerk at (209) 646-4812 or by email at [email protected].

AGENDA
Regular City Council Meeting
June 26, 2023

Page 2 ends

PRESENTATIONS

None

CITIZEN COMMUNICATIONS to the Council on matters not included on the agenda (five minutes).

While the City Council welcomes and encourages participation in City Council meetings, adopted rules allow no more than 5 minutes (Resolution No. 2007-106) for expression of non -agenda items. Matters under the jurisdiction of the City Council, and not on the posted agenda, may be addressed by the general public; however, California law prohibits the City Council from taking action on any matter which is not on the posted agenda unless it is det ermined to be an emergency by the City Council. Citizens are entitled to address the City Council on any agenda item subject to the 5-minute provision.

APPOINTMENTS TO BOARDS/COMMISSIONS

A. Appointing an Alternate to the League of California Cities Executive Committee, Central Valley Division.

CONFLICT OF INTEREST DECLARATION

NEW BUSINESS

1. Resolution No. 2023 -XXX, Accepting the 2021 -2022 City of Ceres Audited Financial Statements and Audit Reports for the Period Ended June 30, 2022. (Dias)

2. Resolution No. 2023 -XXX, Approving the Allocation of Remaining American Rescue Plan Act (ARPA) Funding. (Dias)

CONSENT CALENDAR
All matters listed on the consent calendar are considered routine in nature and will be enacted by a single motion unless otherwise requested by an individual Councilmember or public for special consideration.

Otherwise, the recommendation of staff will be accepted and acted upon by roll call vote.

3. Clerks Report of Posting. The agenda of the June 26, 2023 City Council Meeting was Posted on Wednesday, June 21, 2023. (City Clerk)

4. Waive Readings. All Readings of Ordinances and Resolutions are Waived. (Waive readings in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title). (City Clerk)

5. Approval of Minutes for the June 1 2, 2023 Regular City Council Meeting. (City Clerk)

6. Register of Audited Demand(s) Dated May 31, 2023 through June 7, 2023. (Dias)

AGENDA
Regular City Council Meeting
June 26, 2023

Page 3 ends

7. General Correspondence – Information Only
a. Public Works Monthly Report for May 2023. (Royal)

8. Resolution No. 2023-XXX, Awarding the Construction Contract for 2022 Pavement Resurfacing Project to American Pavement Systems Inc., Authorizing Construction Support, a 10% Contingency, a Budget Amendment, and the Interim City Manager to Execute the Contract. (Waugh)

9. Resolution No. 2023 -XXX, Authorizing the Interim City Manager to Approve an Agreement with Provost and Pritchard Consulting Group for Professional Consultation Services to Install an Irrigation Supply Well at Ochoa Park. (Royal)

10. Resolution No. 2023 -XXX, Authorizing the Interim City Manager to Approve an Agreement with Elevator Technology, Inc. for Elevator Maintenance Services . (Royal)

11. Resolution No. 2023 -XXX, Authorizing the Interim City Manager to Execute a Program Development Agreement with Alliance Building Solutions, Inc. for an Assessment of Energy Efficiency and Renewable Energy Opportunities and Sign the Letter of Agreement. (City Manager)

12. Resolution No. 2023-XXX, Authorizing the One Time Use of ARPA Funds in the Amount of $350,000.00 to Complete the Required Funding Needed to Replace the Whitmore Park Gazebo. (Chavez)

13. Resolution No. 2023 -XXX, Authorizing the City Manager to Enter into an Agreement with ClearSource Financial Consulting to Conduct a User and Regulatory Fee Study. (City Manager)

14. Resolution No. 2023-XXX, Approving an Expenditure of $180,000 to the National Fitness Campaign to Construct an Outdoor Fitness Center Using American Rescue Plan Act Funds. (Spade)

15. Resolution No. 2023 -XXX, Authorizing the City Manager to Enter into a Professional Services Agreement with Harris and Associates to Conduct an Impact Fee Study. (City Manager)

16. Resolution No. 2023-XXX, Approving Amendment No. 1 to a Lands caping Maintenance Services Contract with EMTS, Inc. to Perform Landscape Maintenance Services for Smyrna Park, River Bluff Park, and City Rights -of-Way, and Authorizing the Interim City Manager to Execute the Contract. (Royal)

CONSIDERATION OF ITEM(S) REMOVED FROM THE CONSENT CALENDAR

AGENDA
Regular City Council Meeting
June 26, 2023

Page 4 ends

UNFINISHED BUSINESS

None

PUBLIC HEARING

17. Resolution No. 2023-XXX, Approving the Engineer’s Annual Report, Confirming the Assessment and Ordering the Levy for the 1987 Landscape and Lighting District for Fiscal Year 2023/2024. (Waugh)

18. Ordinance No. 2023-XXX, Amending Chapter 8, California Fire Code, of Title 15, Buildings and Construction, and Chapter 20 Fireworks Sales, of Title 5, Business Licenses and Regulations, of the Ceres Municipal Code to Adopt the 2022 California Fire Code. (Wise)

DISCUSSION ITEMS

None

COUNCILMEMBER REFERRALS
Councilmembers request to have an agenda item placed on a future agenda (pursuant to Chapter 2 - City Council Meetings, J-8. City Council Referrals/Determination of Items for Agenda).

19. Report on Homelessness
(Requested by Councilmember Vierra)

REPORTS
At this time, any Councilmembers or City staff will make an announcement, or report briefly on his /her activities.

• Mayor
• City Council
• City Manager
• City Attorney
• Departments
• County Supervisor

CLOSED SESSION

20. Liability Claims, Cal. Gov. Code §54956.95
Claimant: Guadalupe Valencia
Agency Claimed Against: City of Ceres

AGENDA
Regular City Council Meeting
June 26, 2023

Page 5 ends

REPORT FROM CLOSED SESSION

ADJOURNMENT
The next regularly scheduled City Council Meeting will be held on July 10, 2023 at 6:00 p.m. in the City Council Chambers located in the Community Center at 2701 Fourth Street, Ceres, CA.

Council Agenda:

The City Council agenda is available for public review on the City’s website at www.ci.ceres.ca.us and posted at the time and places noted above.

Related Materials:

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the City Clerk’s Office at City Hall located at 2220 Magnolia Street, Ceres, CA during normal business hours. Persons with questions concerning any agenda item may call the City Clerk’s Office at (209) 538 - 5731.

Notice regarding Americans with Disabilities Act:

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need the agenda and/or the documents in the agenda packet provided in an alternative format, please contact the city clerk’s office at (209) 538 - 5731 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-35.104 ADA TITLE II).

AFFIDAVIT OF POSTING

I, Fallon Martin, City Clerk, for the City of Ceres, declare under penalty of perjury that the foregoing agenda for the Regular City Council Meeting was posted on Wednesday, June 21, 2023, at the following locations in Ceres:

• Community Center Display Case – 2701 Fourth Street

__________________________________________________________________________________________________________________________________________________________ Fallon Martin, City Clerk

COUNCIL AGENDA REPORT

CITY COUNCIL

Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Bret Silveira, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: June 26, 2023
TO: Mayor and City Council
FROM: Douglas D. Dunford, Interim City Manager
CONTACT: Fallon Martin, City Clerk
[email protected], (209) 538-5731
SUBJECT: Appointing an Alternate to the League of California Cities Executive Committee, Central Valley Division
RECOMMENDED COUNCIL ACTION:

Council concurrence of the 2023 appointment for an alternate to the League of California Cities Executive Committee, Central Valley Division.

I. BACKGROUND:

Each year, the Mayor makes his recommendations for appointment to various boards, commissions, and committees. At the January 9, 2023 Regular City Council Meeting council approved the 2023 City Council Appointments (Attachment A). At that time, an alternate was not appointed to the League of California Cities Executive Committee, Central Valley Division.

The League of California Cities Central Valley Division includes 25 cities in Calaveras, Merced, Madera, San Joaquin, Stanislaus, and Tuolumne counties and provides members with the opportunity to exchange ideas and information and share the advantages of cooperative advocacy.

The division is guided by an executive committee under the leadership of a division president. Elected city officials and professional city staff atte nd division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento. Division members also participate in the development of Cal Cities policy through representation on:

• The Cal Cities board of directors;
• Policy committees;
• The Annual Conference Resolution committee; and
• The Annual Conference Program committee.

ITEM A
Division membership meetings are held quarterly and split between the Central Valley's northern and southern cities. The next meeting is scheduled for October 5, 2023 at the Manteca Park Golf Course.

II. REASONS FOR RECOMMENDATION:

City Council Rules and Procedures and Government Code Section 40605 state that the Mayor shall make all appointments to boards, commissions, and committees. The Council then must ratify, at a public meeting, the Mayor’s appointments.

III. FISCAL IMPACTS:

N/A
IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

Upon Council approval, the League of California Cities Executive Committee, Central Valley Division will be notified of the appointment of the City’s alternate representative.

Approved by: ____________________
Douglas D. Dunford
Interim City Manager
Attachments:

1. Attachment A – 2023 City Council Committee Appointments ITEM A
2023 CITY COUNCIL COMMITTEE APPOINTMENTS
The Mayor appoints, with the concurrence of Council, representatives to the following intergovernmental and City boards upon which an elected official of Ceres is required or desired:

Committee 2023 Appointments
1 Christmas Festival Mayor Lopez
Silveira
2 City-Schools Committee Mayor Lopez
Silveira
3 Concerts in the Park Committee Mayor Lopez
Silveira
4 County-City Selection Committee (Mayors) Mayor Lopez
5 East Stanislaus Integrated Regional Water
Management Program (ESIRWSP)
Silveira
Martinez
6 Executive Committee, Central Valley Division,
League of California Cities Mayor Lopez
7 Stanislaus County Economic Development
Action Committee
Mayor Lopez
City Manager Desginee
(alternate)
8 Stanislaus Elder Abuse Prevention Alliance
(SEAPA) Casey
9 StanCOG Policy Board Mayor Lopez
Silveira (alternate)
10 Former Stanislaus-Ceres Redevelopment
Commission Successor Agency City Council
11 Surface Water Joint Powers Authority Board
(SRWA)
Mayor Lopez
Silveira
Vierra (alternate)
12 Airport Advisory Committee
(City staff member)
Senior Planner
Casey (alternate)
13 Tuolumne River Regional Park
Committee
Mayor Lopez
Martinez

ATTACHMENT A
ITEM A
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Committee 2023
Recommendations
14 Whitmore House Preservation Committee Mayor Lopez
Martinez (alternate)
15 Youth Commission Vierra
16 West Turlock Subbasin Groundwater
Sustainability Agency (JPA)

Silveira
Casey (alternate)

17 Stanislaus Homeless Alliance Casey
Vierra (alternate)
18 Fire Advisory Committee (contract for service) Mayor Lopez Silveira
19 Former Ceres Redevelopment Agency City
Council Successor Agency City Council
20 Ceres Partnership for Healthy
Children
Vierra
Martinez (alternate)
21 Opportunity Stanislaus Mayor Lopez
22 Local Emergency Planning Committee Mayor Lopez
Silveira
23 San Joaquin Valley Air Pollution Control
District Special City Selection Committee Vierra

Approved by Council on: January 9, 2023
Amended: March 27, 2023
ITEM A

COUNCIL AGENDA REPORT

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Bret Silveira, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: June 26, 2023
TO: Mayor and City Council
FROM: Douglas D. Dunford, Interim City Manager
CONTACT: Leticia Dias, Finance Director
[email protected], (209) 538-5764
SUBJECT: Resolution No. 2023 -XXX, Accepting the 2021 -2022 City of Ceres Audited Financial Statements and Audit Report s for the Period Ended June 30, 2022
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council accept the 2021 -2022 City of Ceres audited Financial Statements and the Audit Reports for the period ended June 30, 2022.

I. BACKGROUND:

The independently audited Financial Statements for the City of Ceres, as of June 30, 2022, are hereby forwarded for review and acceptance by the City Council.

An unqualified opinion has been given by the auditors JJACPA, Inc. to these Financial Statements. The unqualified opinion is the highest or best opinion that an auditor can give. The auditor is making no exceptions nor inserting any qualifications in this report.

This report is presented in compliance with the Government Accounting Standards Board pronouncements. Included in this report are several sections such as highlights, fina ncial analysis and economic factors to give the reader a more informed perspective as to the fiscal health of the City.

General Fund revenue received as of June 30, 2022 equals $24,775,490 as compared to $23,237,183 as of June 30, 2021. General Fund expen ditures, including encumbrances as of June 30, 2022, equal $25,550,653 as compared to $21,205,782 as of June 30, 2021.

II. REASONS FOR RECOMMENDATION:

Acceptance by the governing body of the annual audit reports is required.

ITEM 1
III. FISCAL IMPACTS:

N/A
IV. EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:

N/A
V. POLICY ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

N/A
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLLOWING APPROVAL:

There are no additional requirements after Council approval.

Approved by: ____________________
Douglas D. Dunford
Interim City Manager
Attachments:

1. Attachment A – Resolution

2. Attachment B – Communication Letter

3. Attachment C – Basic Financial Statements

4. Attachment D – GANN Report

5. Attachment E – Single Audit

6. Attachment F – Measure H Audit Report
ITEM 1

ATTACHMENT A
RESOLUTION NO. 2023-XXX

ACCEPTING THE 2021-2022 CITY OF CERES AUDITED FINANCIAL

STATEMENTS AND AUDIT REPORTS FOR THE PERIOD ENDED
JUNE 30, 2022

THE CITY COUNCIL
City of Ceres

WHEREAS, the City’s financial records must be audited annually, and

WHEREAS, the City’s financial records for fiscal year ending June 30, 2022 were audited by the independent auditing firm of JJACPA, Inc; and

WHEREAS, an unqualified opinion has been given by the auditors of JJACPA, Inc, to these financial statements; and

WHEREAS, the report is presented in compliance with the Government Accounting Standards Board pronouncements; and

WHEREAS, acceptance by the governing body of the annual reports is required.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres does hereby accept the 2021-2022 City of Ceres audited financial statements and audit reports for the period ended June 30, 2022.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 26th day of June 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

________________________________
Javier Lopez, Mayor
ATTEST:

_________________________________
Fallon Martin, City Clerk
ITEM 1
ITEM 1

CITY OF CERES

COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AND

COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2022

ATTACHMENT B
ITEM 1

7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com

June 7, 2023

City Council
City of Ceres
Ceres, California

We have audited the basic financial statements of the City of C eres (City) as of and for the year ended June 30, 2022 and have issued our report thereon dated June 7, 2023. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated June 17, 2022, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the f inancial statements are free of material misstatement. An audit of financial statements includes conside ration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opini on on the effectiveness of th e entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of City of Ceres solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for commu nicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in ove rseeing the financial reporting process.

However, we are not required to design procedures for the purpo se of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

ITEM 1
JJACPA, Inc.

A Professiona l Accounting erv1ces Corp .

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and ou r firm have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements.

There have been no initial selection of accounting policies and no changes in significant accounting policies or their application dur ing fiscal year ended June 30, 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the eff ect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial stat ements prepared by management and are based on management’s current judgments. Those judgments are no rmally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are useful lives of capital assets (“useful lives”).

Management’s estimate of the useful lives is based on experience with and observation of capital assets, by category (e.g. infrastructure) as well as industry standards , when applicable (i.e. buildings). We evaluated the key factors and assumptions used to develop the u seful lives and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disc losures involve significant jud gment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to commitments and contingencies.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communicatio n, professional standards requ ire us to accumulate all known and likely misstatements identified during the audit, other than th ose that we believe are trivial, and communicate them to the appropriate level of management. Furthe r, professional standards require us ITEM 1

to also communicate the effect of uncorrected misstatements rel ated to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.

In addition, professional standards require us to communicate to you all material, corrected adjustments that were brought to the attention of management as a result of our audit procedures. The following material adjustments were known by management and communicated to us in the form of request for assistance:

To update pension disclosures for GASB 68 management made entri es of $3,596,946 for the pension credit adjustment, $24,072,409 for the net pension liability, $ 12,796,823 for the deferred inflows of resources and $7,678,640 for the deferred outflows of resources.

Disagreements with Management

For purposes of this letter, professional standards define a di sagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in the attached letter dated June 7, 2023.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, the re were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our profe ssional association with the C ity, we generally discuss a variety of matters, including the applica tion of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted i n a condition to our retention as the entity’s auditors.

Noncompliance with Laws and Regulations, Violations of Contract Provisions or Grant Agreements

We have identified the following matters involving noncompliance with laws and regulations, violations of contract provisions or grant agreements that came to our att ention during the course of the audit.

Section 200.512(a) of the Uniform Guidance states that an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. The City completed the audit and submitted the data co llection form and reporting pack age on June 9, 2023. The City did not meet the audit requirements as provided in Section 200.512(a).

ITEM 1

Other Information in Documents Containing Audited Financial Statements

Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City’s audited fi nancial statements does not ext end beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the Management’s Discussion and Analysis and considered whether such information or the manner of its presentation was materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Communication of Internal Control Related Matters

In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the p urpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness o f the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

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

Very truly yours,
]ÉáxÑ{ ] TÜv{?VcT

JOSEPH J ARCH, CPA
President/CEO
JJACPA, INC.

ITEM 1
ITEM 1
June 7, 2023
JJAPCA, Inc.
7080 Donlon Way, Suite 204
Dublin CA, 94568
Dear Mr. Arch:

Finance Department
2220 Magnolia Street
Ceres, CA 95307
209-538-5757
(fax) 209-538-5780

CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist. 1 Rosalinda L. Vierra, Dist. 2
Bret Silveira, Dist. 3 Daniel A. Martinez, Dist. 4
This representation letter is provided in connection with your audit of the governmental activities, the business type activities, each major Jund, the aggregate remaining fund information, and the budgetary comparison information of the City of Ceres, California (City) as of June 30, 2022 and for the year ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City in conformity with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of June 7, 2023:

Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated June 17, 2022 for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
• We acknowledge our responsibility 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.
• We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• We have reviewed, approved, and taken responsibility for the financial statements and related notes. • We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.

ITEM 1
• Significant assumptions used by us in making accounting estimates , including those measured at fair value, are reasonable .
• Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.
• All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
• All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified .
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis- for State and Local Governments, and GASB Statement No. 37, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments: Omnibus as amended, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users. • All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved . • Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy. • All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. • All interfund and intra-entity transactions and balances have been properly classified and reported. • Special items and extraordinary items have been properly classified and reported. • Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable , depreciated.
• All required supplementary information is measured and presented within the prescribed guidelines. • With regard to investments and other instruments reported at fair value:
- The underlying assumptions are reasonable , and they appropriately reflect management's intent and ability to carry out its stated courses of action.

The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied.
- The disclosures related to fair values are complete , adequate, and in conformity with U.S. GAAP .

There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.

Information Provided
• We have provided you with:
- Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters ; Additional information that you have requested from us for the purpose of the audit; and - Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
• All transactions have been recorded in the accounting records and are reflected in the financial statements.

ITEM 1
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
• We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
- Management;
- Employees who have significant roles in internal control; or Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, vendors, regulators , or others. • We are not aware of any pending or threatened litigation and claims whose effects should be considered when preparing the financial statements.
• We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware.
• There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable.
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62) , Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
• We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. • There are no:

Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. - Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62.
- Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB- 62 • The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you. • We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance .

With respect to federal award programs:
• We are responsible for understanding and complying with and have complied with the requirements of the Uniform Guidance.
• We are responsible for the preparation and presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance.
• We believe the schedule of expenditures of federal awards, including its form and content, is fairly presented in accordance with the Uniform Guidance .
• As part of your audit(s), you prepared the draft financial statements and related notes and schedule of expenditures of federal awards. We have designated an individual with suitable skill, knowledge, or experience to oversee your services and have made all management decisions and performed all ITEM 1
management functions. We have reviewed, approved, and accepted responsibility for those financial statements and related notes and schedule of expenditures of federal awards. • The methods of measurement or presentation have not changed from those used in the prior period. • We are responsible for including the auditor's report on the schedule of expenditures of federal awards in any document that contains the schedule and that indicates that the auditor has reported on such information.
• We have notified you of federal awards and funding increments that were received before June 7, 2023 and differentiated those awards from awards and funding increments received on or after June 7, 2023, and the Uniform Guidance.
• When the schedule of expenditures of federal awards is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards no later than the date of issuance by the entity of the schedule of expenditures of federal awards and the auditor's report thereon. • We have, in accordance the Uniform Guidance, identified in the schedule of expenditures of federal awards, expenditures made during the audit period for all awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, food commodities, direct appropriations, and other assistance.
• We have no knowledge of any instances, that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance, whether communicated by employees, former employees, vendors, regulators, or others.
• We have no knowledge of any instances that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that has a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives. • We have no knowledge of any instances that have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives.
• We have taken timely and appropriate steps to remedy fraud, noncompliance with provisions of laws, regulations, contracts, and grant agreements, or abuse that you have reported to us. • We have a process to track the status of audit findings and recommendations. • We have identified for you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. • We have provided views on your reported audit findings, conclusions, and recommendations, as well as our planned corrective actions, for the report.
• We are responsible for complying with the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our federal programs and have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major federal program; and we have complied, in all material respects, with these requirements. • We have provided to you our interpretations of any compliance requirements that have varying interpretations.
• We are responsible for establishing and maintaining effective internal control over compliance requirements applicable to federal programs that provide reasonable assurance that we are managing our federal awards in compliance with laws, regulations, and the provisions of contracts and grant agreements that could have a material effect on our federal programs. Also, no changes have been made in the internal control system to the date of this letter that might significantly affect internal control, including any corrective action taken with regard to significant deficiencies, including material weaknesses, reported in the schedule of findings and questioned costs. • We have made available to you all contracts and grant agreements (including amendments, if any) and any other correspondence with federal agencies or pass-through entities relating to federal programs.

ITEM 1
• We have received no requests from a federal agency to audit one or more specific programs as a major program.
• We have identified and disclosed to you all amounts questioned and any known noncompliance with the requirements of federal awards, including the results of other audits or program reviews. We also know of no instances of noncompliance occurring subsequent'to the end of the period audited. • We have charged costs to federal awards in accordance with applicable cost principles, including amounts claimed or used for matching determined in accordance with relevant guidelines in the Uniform Guidance.
• We have made available to you all documentation related to the compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. • Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared (and are prepared on a basis consistent with the schedule of expenditures of federal awards). • The copies of federal program financial reports provided to you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass-through entity, as applicable. • We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform Guidance, and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions. • We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation
• We are responsible for and have accurately completed the appropriate sections of the Data Collection Form as required by the Uniform Guidance, and we are responsible for preparing and implementing a correction action plan for each audit finding.
• We have disclosed all contracts or other agreements with service organizations and disclosed to you all communications from these service organizations relating to noncompliance at the organizations. • We have reviewed, approved, and taken responsibility for the schedule of expenditures of federal awards and related notes and an acknowledgment of the auditor's role in the preparation of this information. (This representation is required by footnote 28 to paragraph 3 .18 of Government Auditing Standards when the auditor has a role in preparing the trial balance and draft financial statements and related notes.)
• We have reviewed, approved, and taken responsibility for accrual adjustments and an acknowledgment of the auditor's role in the preparation of the adjustments. (This representation is required by footnote 28 to paragraph 3 .18 of Government Auditing Standards when the auditor has a role in converting cash basis financial statements to accrual-based financial statements.) • We have disclosed to you the nature of any subsequent events that provide additional evidence with respect to conditions that existed at the end of the reporting period that affect noncompliance during the reporting period.

Le ·1cia Dias
Finance Director

CITY OF

CERES, CALIFORNIA
ANNUAL

FINANCIAL REPORT

FOR THE

FISCAL YEAR ENDED
JUNE 30, 2022
Prepared by:

Leticia Dias

Finance Director

ATTACHMENT C
ITEM 1

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ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Table of Contents

Page

Table of Contents .................................................................................................................................. i

Organization Chart ............................................................................................................................. v

List of Officials .................................................................................................................................. vii

Independent Auditors’ Report ........................................................................................................... 1

Management’s Discussion and Analysis (Required Supplementary Information) ....................... 4

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................ 19 Statement of Activities ............................................................................................................ 20

Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................................ 24 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position .................................... .................................................................... 26 Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Positio n – Governmental Activities ............................................................. 27 Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ................................................................................ 28 Reconciliation of Fund Basis Sta tements to Government-wide Statement of Activities ............................................................................................................ 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................... 31 Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget to A ctual – General Fund and
Major Special Revenue Funds ................................................................................................. 32

INTRODUCTORY SECTION

FINANCIAL SECTION
ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Table of Contents, Continued

Page
Basic Financial Statements, Continued:

Fund Financial Statements, Continued:

Proprietary Funds:

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 Funds:

Statement of Fiduciary Net Position – Fiduciary Funds ................................................................ 41 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ......................... 42

Notes to Basic Financial Statements .......................................................................................... 45

Required Supplementary Information:

Schedule of Employer Contributions ...................................................................................... 94 Schedule of the Changes in Net Pension Liability and Related Ratios .................................. 95

Combining and Individual Fund Financial Statements and Schedules:

Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................ 102 Combining Statement of Reve nues, Expenditures, and Changes i n F und Balances .............................................................................................................. 108 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Street Tree ........................................................................................ 114 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Storm Drain Benefit Districts ........................................................... 115 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Brown Annex ................................................................................... 116 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Eastgate Street Benefit District ........................................................ 117 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – AB 939 ............................................................................................. 118 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Neighborhood Park Fees .................................................................. 119 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – BEGIN Grant .................................................................................... 120 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Program Income BEGIN .................................................................. 121 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Measure H ........................................................................................ 122 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – State Gas Tax .................................................................................... 123 ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Table of Contents, Continued

iii

Page
Combining and Individual Fund Financial Statements and Schedules, Continued:

Nonmajor Special Revenue Funds, Continued:

Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – SLESF .............................................................................................. 124 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Abandoned Vehicle Abatement ........................................................ 125 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Seized Property ................................................................................. 126 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Downtown Revitalization ................................................................. 127 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Street-Light and Landscape District ................................................. 128 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Traffic Offender ............................................................................... 129 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Traffic Safety .................................................................................... 130 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Used Oil Grants ................................................................................ 131 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Department of Conservation Grant .................................................. 132 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – CMAQ .............................................................................................. 133 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Community Facilities District .......................................................... 134 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Fire Hydrant Benefit District ............................................................ 135 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Transportation Development Act ..................................................... 136 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Community Center ........................................................................... 137 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – LLEBG ............................................................................................. 138 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Public Facilities Fees ........................................................................ 139

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Table of Contents, Continued

Page
Combining and Individual Fund Financial Statements and Schedules, Continued:

Nonmajor Special Revenue Funds, Continued:

Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Daniel Whitmore House ................................................................... 140 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – River Bluff Regional Park ................................................................ 141 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Ceres Community Foundation .......................................................... 142 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – 2018 Public Safety Grants ................................................................ 143 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Clinton Whitmore Mansion .............................................................. 144 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Measure L ......................................................................................... 145 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – Road Maintenance and Rehab .......................................................... 146 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – SB2 Planning Grants Program ......................................................... 147 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – SB 1383 ............................................................................................ 148 Schedule of Revenues, Expenditures, and Changes in Fund Balan ces – B udget to Actual – CARES Act ...................................................................................... 149

Internal Service Funds:

Statement of Fund Net Position – Internal Service Funds ...... ..................................................... 151 Statement of Revenues, Expens es, and Changes in Fund Net Position– Internal Service Funds ..................................................................................................... 152 Combining Statement of Cash Flo ws – Internal Service Funds .................................................. 153

Trust and Agency Funds:

Combining Statement of Net Pos ition – Private Purpose Trust Funds ........................................ 155 Combining Statement of Changes in Fiduciary Net Position– Private Purpose Trust Funds ........................................................................................... 156

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Organization Chart

ITEM 1
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ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

List of Officials

vii

 Javier Lopez, Mayor
 Bret Silveira
 James Casey
 Rosalinda L. Vierra
 Daniel A. Martinez

 Doug Dunford, Interim City Manager
 Leticia Dias, Finance Director
 Kayla Martinez, City Treasurer
 Fallon Martin, City Clerk
 Nubia Goldstein, City Attorney

CITY COUNCIL

CITY OFFICIALS
ITEM 1

viii

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ITEM 1

7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and City Council
of the City of Ceres
Ceres, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental ac tivities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ceres, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present f airly, 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, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Street Expansion Special Revenue Fund, Home Program Grants Special Rev enue Fund, and CDBG Grants Special Revenue Fund for the year then ended in accordance with account ing 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 responsibilit ies under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial S tatements 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 audit. We believe that the audit e vidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparation and fa ir presentation of the financial statements in accordance with accounting princi ples 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 t o 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 financial statement date, including an y currently known information that may raise substantial doubt shortly thereafter.

ITEM 1
JJACPA, Inc.

A Professional Accounting erv1ces Corp.

To the Honorable Mayor and City Council
of the City of Ceres
Ceres, California

Page 2 ends

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 is sue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fr aud 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, 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 th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of interna l 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.

Required Supplementary Information

Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis on pages 4-16, the City’s Schedules of Contributions, Pensions on pages 94, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 95, be presented to supplement the basic financial statements.

Such information is the responsibility of management and, altho ugh 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 limite d procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of managem ent about the methods of prepa ring the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited pr ocedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

ITEM 1

To the Honorable Mayor and City Council
of the City of Ceres
Ceres, California

Page 3 ends

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial state ments. The combining and indivi dual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certai n additional procedures, includi ng comparing and reconc iling 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 pro cedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respect s, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated June 7, 2023 on our consideration of City’s interna l control over financial reporti ng and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s 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 internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accord ance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

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J u n e 7 , 2 0 2 3 JJACPA, Inc.

D u b l i n , C A
ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis

4 This section provides a narrative overview and analysis of the financial activities of the City of Ceres (City) for the fiscal year ended June 30, 2022. It should be re ad in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS

 As of June 30, 2022, total assets o f the City exceeded its liab ilities by $173,281,067 (net position). The portion of net position that may be used to meet the government’s ongoing obligations to citizens and cred itors (unrestricted net positio n) is $35,754,293. There are currently $12,507,846 of net position that are restricted and m ay only be used for a specific purpose. The remaining $125,018,928 is the net investment in capital assets.

 As of June 30, 2022, the City’s Governmental Activities reporte d combined net position of $91,987,659 of that, ($1,302,389) is unrestricted.

 As of June 30, 2022, the City’s governmental funds reported combined ending fund balances of $27,912,226. Approximately 85% of th is total amount ($23.6 mil lion) is nonspendable, restricted, committed or assigned to indicate that it is not av ailable for new spending because it has already been set aside for a specific purpose due to a law, regulation, or Council action or it is not part of available, spendable resources. Of the remaining balance, $7,627,796 is committed as a “general fund reserve” for economic uncertainties and anticipated future short-term structural deficits.

 Capital assets in the governmental activities, net of depreciation, decreased to $81,578,892 from $84,379,402, which includes $107,551,424 of infrastructure per the requirements of GASB 34.

This decrease is attributed to the disposal of city vehicles an d equipment. The city was unable to acquire scheduled equipment replacements due to supply chain issues.

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

5 OVERVIEW OF THE ANNUAL FINANCIAL REPORT

This Annual Financial Report is in two major parts:

1) Introductory section, which includes general information;

2) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes t o these financial statements, and supplementary information, which includes Combining and Individual Fund Finan cial Statements and Schedules.

The Basic Financial Statements

The Basic Financial Statements are comprised of the Government- wide Financial Statements and the Fund Financial Statements; these two sets of financial statemen ts provide two different views of the City’s financial activities and financial position.

The Government-wide Financial Statements

The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Ne t Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City ’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year.

All of the City’s activities are grouped into Governmental Acti vities and Business-type activities, as explained below. All the amounts in the Statement of Net Positi on and the Statement of Activities are separated into Governmental Activities and Business-type Activi ties in order to provide a summary of these two activities of the City as a whole.

♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, economic development, public safety, animal control, e ngineering, community events, public improvements, planning and zoning, building insp ections, and general administ ration. These services are supported by general City revenues such as taxes and by specifi c program revenues such as developer fees.

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

6 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued

The Government-wide Financial Statements, Continued

♦ Business-type activities – All the City’s enterprise activities are reported here, inclu ding Water, Sewer, and STANCOG. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

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, lik e other state and local governments, uses fund accounting to ensure and demonstrate compliance with finan ce-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary 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 Statem ents, Governmental Fund Financi al 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 requirements.

Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare t he information presented for governmental funds with similar information presented for governmental activities in the Government- wide Financial Statement. By doing so, readers may better under stand the long-term impact of the government’s near-term financial decisions. Both the government al fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate thi s comparison between governmental funds and governmental activities.

The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major f unds. The concept of major fun ds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fu nd is presented individually, with all nonmajor funds summarized and presented only in a single column . Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City’s activities.

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

7 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued

Fund Financial Statements, Continued

For the fiscal year ended June 30, 2022, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
 General Fund
 Street Expansion Special Revenue Fund
 HOME Program Grants Special Revenue Fund
 CDBG Grants Special Revenue Fund

PROPRIETARY FUNDS:
 Water Enterprise Fund
 Sewer Enterprise Fund
 STANCOG Enterprise Fund

Proprietary funds. The City maintains Enterprise-type and internal service 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 Water, Sewer, and STANCOG activities. Proprietary funds pr ovide the same type of informat ion as the Government-wide Financial Statements, only in more detail. Internal service funds present operations for services provided within the government. Internal service funds are maintained for equip ment, information technology, risk management, and building maintena nce activities. The proprietar y fund financial statements provide separate information for the all of the enterprise operations and a combined total for the internal service funds, which are consolidated into governmental activities at the government-wide statement level.

Notes to the Basic 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. The notes to the basic financial statements can be found on pages 45–91 of this report.

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

8 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued

Combining and Individual Fund Financial Statements and Schedules

The combining statements refe rred to earlier in connection with nonmajor governme ntal funds are presented immediately following the notes to the financial stat ements. Combining and individual fund statements can be found on pages 102-157 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.

In the case of the City, assets exceeded liabilities by $173,281,067 as of June 30, 2022.

The Summary of Net Position as of June 30, 2022, and 2021, follows:

Govern- Business- Govern- Business-
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 37,336,693$ 44,561,683$ 81,898,376$ 30,577,671$ 56,249,926$ 86,827,597$ Noncurrent assets 89,252,378 72,095,947 161,348,325 92,414,107 36,386,744 128,800,851 Total assets 126,589,071 116,657,630 243,246,701 122,991,778 92,636,670 215,628,448 Deferred outflows: Pension Plan 7,559,716 1,117,794 8,677,510 13,971,344 2,350,299 16,321,643 Total assets and deferred outflows 134,148,787 117,775,424 251,924,211 136,963,122 94,986,969 231,950,091 Current and other liabilities 6,441,814 2,991,664 9,433,478 5,926,561 2,184,223 8,110,784 Long-term liabilities 22,626,479 31,042,671 53,669,150 45,023,551 36,032,715 81,056,266 Total liabilities 29,068,293 34,034,335 63,102,628 50,950,112 38,216,938 89,167,050 Deferred inflows: Pension Plan 13,092,835 2,447,681 15,540,516 2,428,676 393,650 2,822,326 Total liabilities and deferred inflows 42,161,128 36,482,016 78,643,144 53,378,788 38,610,588 91,989,376 Net position:

Net investment in capital assets 80,782,202 44,236,726 125,018,928 83,487,997 5,062,262 88,550,259 Restricted 12,507,876 - 12,507,876 9,065,702 - 9,065,702 Unrestricted (1,302,419) 37,056,682 35,754,263 (8,969,365) 51,314,119 42,344,754 Total net position 91,987,659$ 81,293,408 $ 173,281,067 $ 83,584,334 $ 56,376,381 $ 139,960,715 $ Summary of Net Position
20212022

Restricted net position increased by $3,442,144 due to increase d revenue from Measure H, Measure L and American Rescue Plan Act (ARPA) funding. The increased revenues are committed to public safety personnel and equipment costs, and projects approved by the City Council, respectively.

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

9 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

The change in net position for the fiscal years ended June 30, 2022, and 2020, follows:

Govern- Business- Govern- Business-
mental type mental type
Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services 2,228,871$ 27,698,671$ 29,927,542$ 1,513,702$ 26,727,162$ 28,240,864$ Grants and contributions:

Operating 20,366,231 - 20,366,231 16,501,734 - 16,501,734 Capital 3,909,176 - 3,909,176 2,485,927 - 2,485,927 General revenues:

Property taxes
and assessments 2,474,768 - 2,474,768 2,493,299 - 2,493,299 Sales and use tax 9,587,174 - 9,587,174 8,764,804 - 8,764,804 Utility users tax 1,057,622 - 1,057,622 861,325 - 861,325 Other taxes 961,921 - 961,921 1,030,586 - 1,030,586 State motor vehcile in-lieu tax 4,284,543 - 4,284,543 4,059,777 - 4,059,777 Use of money and property 438,261 126,380 564,641 275,976 332,682 608,658 Other general 3,059,800 12,402,350 15,462,150 96,337 5,256,099 5,352,436 Total revenues 48,368,367 40,227,401 88,595,768 38,083,467 32,315,943 70,399,410 Expenses:

Governmental activities:

General government 5,396,614 - 5,396,614 7,671,594 - 7,671,594 Public safety 24,362,856 - 24,362,856 23,201,443 - 23,201,443 Eng
ineering and transportation 364,629 - 364,629 641,146 - 641,146 Public works 6,025,953 - 6,025,953 5,176,901 - 5,176,901 Community services 3,393,321 - 3,393,321 3,791,032 - 3,791,032 Economic development 108,315 - 108,315 207,914 - 207,914 Interest and fiscal charges 9,354 - 9,354 12,570 - 12,570 Business-type activities:

Water - 7,228,391 7,228,391 - 22,255,898 22,255,898 Sewer - 8,385,900 8,385,900 - 9,219,352 9,219,352 STANCOG - 83 83 - 14,584 14,584 Total expenses 39,661,042 15,614,374 55,275,416 40,702,600 31,489,834 72,192,434 Excess (Deficiency) of revenues over
expenditures before transfers 8,707,325 24,613,027 33,320,352 (2,619,133) 826,109 (1,793,024) Transfers (304,000) 304,000 - (304,949) 304,949 - Change in net position 8,403,325 24,917,027 33,320,352 (2,924,082) 1,131,058 (1,793,024) Net position:

Beginning of year 83,584,334 56,376,381 139,960,715 86,508,416 55,245,323 141,753,739 End of year 91,987,659$ 81,293,408$ 173,281,067$ 83,584,334$ 56,376,381$ 139,960,715$ 202120
22 ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

10 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

Revenues

The City’s total revenues for governmental and business-type activities were $88,595,768 for the fiscal year ended June 30, 2022. Approximately 46% of the City’s key revenues are generated from four major sources.

The following discusses variances in key revenues from the prior fiscal year:

1. Sales Tax. Annual receipts increased by 9%. This increase is mainly attri buted to a slow increase in the economy and consumer spending as a result of COVID-19 restrictions being lifted

2. Property Tax. Annual receipts decreased by .7%, due to a slowdown of homes being sold.

3. Grants and Contributions – Governmental Activities Operating. There was an increase of 23% in Governmental operating grants and contributions mainl y due to the American R e s c u e P la n A c t (A R PA ) g ra n t re v e n u e s . T h e g ra n t fu n d s w e re g iven to the City as an emergency relief measure intended to provide relief to address the impact of COVID-19.

4. State Motor Vehicle In-Tax – Annual receipts increased by 6%. The increase is due to increased vehicle registration fees.

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

11 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

Expenses

Governmental and business-type activity expenses of the City for the year totaled $55,275,416.

Governmental activity expenses totaled $39,661,042 or 72% of to tal expenses. Business-type activities incurred $15,614,374 of expenses during the fiscal year. Public safety costs represented 62% of total governmental activities expenses, which represented the largest single expense for governmental activities.

Governmental Activities

The following table shows the cost of each of the City’s major programs and the net cost of the programs.

Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2022, and 2021, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 5,396,614$ 2,292,108$ 7,671,594$ (3,779,120)$ Public safety 24,362,856 (17,361,848) 23,201,443 (16,596,330) Engineering and transportation 364,629 3,262,135 641,146 2,882,311 Public works 6,025,953 421,269 5,176,901 (820,153) Community services 3,393,321 (1,665,102) 3,791,032 (1,677,541) Economic development 108,315 (95,972) 207,914 (197,834) Interest and fiscal charges 9,354 (9,354) 12,540 (12,570) Total 39,661,042$ (13,156,764)$ 40,702,570$ (20,201,237)$ 2022 2021

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

12 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

Revenues by source for the fiscal years ended June 30, 2022, and 2021, are as follows:

Charges for services

4.61%
Operating grants

42.11%
Capital grants

8.08%
Property taxes

5.12%
Sales and use tax

19.82%
Utility users tax

2.19%
Other taxes

1.99%
State motor vehicle
in-lieu tax

8.86%
Use of money and
property

0.91%
Other general
revenues

6.33%
Revenues by Source - Governmental Activities
2022
Charges for services

3.97%
Operating grants

43.33%
Capital grants

6.53%
Property taxes

6.55%
Sales and use tax

23.01%
Utility users tax

2.26%
Other taxes

2.71%
State motor vehicle
in-lieu tax

10.66%
Use of money and
property

0.72%
Other general
revenues

0.25%
Revenues by Source - Governmental Activities
2021
ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

13 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

Business-type activities. Business-type activities increased the City’s net position to $24,917,027. The City has three business-type activities: Water, Sewer, and STANCOG. Water accounts for 62%, Sewer accounts for 38% of total business-type activity revenue, and STANCOG accounts for less than 1%. The expenses and program revenues for the business-type activities for the fiscal year ended June 30, 2022, and 2021, are as follows:

$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
Water Sewer STANCOG
Program revenues Operating expenses
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Water Sewer STANCOG
Program revenues Operating expenses
Expenses and Program Revenues
Business-type Activities
2021
Expenses and Program Revenues
Business-type Activities
2022
ITEM 1
■ ■
■ ■
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

14 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

The revenues by source for the bus iness-type activities for the fiscal years ended June 30, 2022, and 2021, are as follows:

Charges for
services
70%
Investment
earnings
0%
Other general
revenues
30%
Revenues by Source - Business-type Activities
2022
Charges for
services

98.97%
Investment
earnings

1.03%
Revenues by Source - Business-type Activities
2021
ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

15 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

Financial Analysis of the Government’s Funds

The City of Ceres uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental funds . The City’s governmental funds provide information on near-ter m inflows, outflows, and balances of spending resources. At the fiscal yea r ended June 30, 2022, the City’s governmental funds reported combined fund balances of $27,912,226. This is an increase of $8,224,914 or 42% more than last year. The increase was mainly due to the American Rescue Plan Act (ARPA) grant funds given to the City to help recover from the COVID-19 pandemic. The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2022, General Fund unassigned fund balance totaled $7,627,796 with $15,345 as nonspendable.

Community Development Block Grant (CDBG) money is available to cities for a variety of community enhancement activities. In the fiscal year ended June 30, 2022, the majority of this money was used to start the Morrow Village sidewalk improvement project.

Proprietary funds. The City’s proprietary funds net position increased by $24,917,027 in the fiscal year ended June 30, 2022. This was primarily due to the scheduled i ncrease in water rat es; and the funds received through the TCP settlement. Factors concerning the fi nances of the three proprietary funds have already been addressed in the discussion of the City’s business-type activities.

General Fund Budgetary Highlights

The difference between the final budget and actual revenues reflects a negative of $126,894. This was mainly due to the decrease in charges for services. Total general fund final budget for expenditures was $25,219,301. Actual expenditures were $14,499 over budget (approximately .05% of budget).

ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Management’s Discussion and Analysis, Continued

16 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued

Capital Assets

The City’s net investment in capital assets for its governmenta l and business type activities as of June 30, 2022, amount to $153,674,839. This net investment in capita l assets includes land, intangible asset, buildings and improvements, machinery and equipment, and infrastructure.

2022 2021 2022 2021 2022 2021
Land 14,753,193$ 14,753,193$ 3,291,818$ 3,291,818$ 18,045,011$ 18,045,011$ Intangible asset - - 33,620,000 - 33,620,000 - Buildings and improvements 21,385,563 22,687,631 3,166,550 3,458,180 24,552,113 26,145,811 Machinery and equipment 6,377,354 5,710,678 1,019,138 1,181,341 7,396,492 6,892,019 Infrastructure 39,062,782 41,227,900 30,998,441 26,087,523 70,061,223 67,315,423 Total 81,578,892$ 84,379,402$ 72,095,947$ 34,018,862$ 153,674,839$ 118,398,264$ Governmental Activities Business-type Activities Totals

Major capital asset events during the year included: the purchase of machinery, equipment, capitalization of intangible asset for water rights; and disposal of obsolete equipment.

More detail of the capital assets and current activity can be found in the notes to the financial statements on pages 51 and 52 for significan t accounting policies and Note 5 on page 64 for other capital asset information.

Economic Outlook

The national unemployment rate decreased to 3.8% down from 6.1% in 2021. While the City responded to the economic crisis created by COVID-19 without compromising services or closing focus on priorities, the long-term impacts of COVID-19 have yet to be fully realized. Consumer prices increased up to 9.1%. This is the largest increase in over 40 years. It is clear that economic conditions and outcomes will need to be closely monitored.

The City’s major General Fund revenue sources are sales tax and property taxes. Both of these revenue sources are affected by the continuing economic state. We are estimating sales tax revenue to increase by 7% in fiscal year 2022–2023. Also, in fiscal year 2022-2023, we are estimating property tax revenue to increase by 3%. Additionally, with the two cannabis dispensa ries and the cannabis manufacturing facility, the City’s General Fund has received an influx of revenue that reached $1,080,000 for FY 2022 and is expected to reach $1,380,000 in FY 2023. The City successfully passed Measure W in November 2018 that allows for up to 15% special sales tax to be applied to all taxable cannabis.

Requests for Information

This Annual Financial Report is intended to provide citizens, t axpayers, investors, and creditors with a general overview of the City’s finances. If you have any questi ons about this report, need additional financial information, or would like to obtain component unit financial statements, contact Leticia Dias, Finance Director, 2220 Magnolia, Ceres, CA 95307, or visit the City’s web page at www.ci.ceres.ca.us/.

ITEM 1

BASIC FINANCIAL STATEMENTS
17 ITEM 1
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18 ITEM 1
City of Ceres, California
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 33,290,908 $ 40,855,578 $ 74,146,486 $ Cash and investments with trustee/fiscal agent - 62 62 Receivables:

Accounts receivable 6,164,590 1,571,125 7,735,715 Prepaid items 15,345 - 15,345 Inventory 768 768
Internal balances (2,134,918) 2,134,918 - Total current assets 37,336,693 44,561,683 81,898,376 Noncurrent assets:

Advances to fiduciary activities 1,978,636 - 1,978,636 Loans receivable 5,694,850 - 5,694,850 Intangible assets - 33,620,000 33,620,000 Capital assets:

Nondepreciable 14,753,193 3,291,818 18,045,011 Depreciable 66,825,699 35,184,129 102,009,828 Total noncurrent assets 89,252,378 72,095,947 161,348,325 Total assets 126,589,071 116,657,630 243,246,701

DEFERRED OUTFLOWS OF RESOURCES
Pension Plan 7,559,716 1,117,794 8,677,510 Total deferred outflows of resources 7,559,716 1,117,794 8,677,510 Total assets and deferred outflows 134,148,787 117,775,424 251,924,211

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 3,777,557 1,199,229 4,976,786 Deposits payable 2,551,319 524,349 3,075,668 Unearned revenue - 141,713 141,713 Interest payable - 28,994 28,994 Due within one year 112,938 1,097,379 1,210,317 Total current liabilities 6,441,814 2,991,664 9,433,478 Noncurrent liabilities:

Long-term liabilities:

Compensated absences 1,710,024 338,276 2,048,300 Due after one year 116,347 27,859,221 27,975,568 Liability for claims 1,404,797 - 1,404,797 Net pension liability 19,395,311 2,845,174 22,240,485 Total noncurrent liabilities 22,626,479 31,042,671 53,669,150 Total liabilities 29,068,293 34,034,335 63,102,628

DEFERRED INFLOWS OF RESOURCES
Pension Plan 13,092,835 2,447,681 15,540,516 Total liabilities and deferred inflows of resources 42,161,128 36,482,016 78,643,144

NET POSITION
Net investment in capital assets 80,782,202 44,236,726 125,018,928 Restricted 12,507,876 - 12,507,876 Unrestricted (1,302,419) 37,056,682 35,754,263 Total net position 91,987,659 81,293,408 173,281,067 Total liabilities, deferred inflows, and net position 134,148,787$ 117,775,424 $ 251,924,211 $ The accompanying notes are an integral part of these basic financial statements. 19 ITEM 1
City of Ceres, California
Statement of Activities
For the year ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government 5,396,614$ 115,361 $ 7,573,361 $ - $ Public safety 24,362,856 756,102 6,244,906 -
Engineering and Transportation 364,629 119,544 2,860,300 646,920 Public works 6,025,953 923,386 2,261,580 3,262,256 Community services 3,393,321 310,901 1,417,318 - Economic development 108,315 3,577 8,766 - Interest and fiscal charges 9,354 - - - Total governmental activities 39,661,042 2,228,871 20,366,231 3,909,176 Business-type activities:

Water 7,228,391 17,043,372 - - Sewer 8,385,900 10,655,299 - - STANCOG 83 - - - Total business-type activities 15,614,374 27,698,671 - - Total primary government 55,275,416$ 29,927,542$ 20,366,231$ 3,909,176$ General revenues:

Taxes:

Property taxes, levied for general purposes
Sales and use tax
Utility users ta
x
Other taxes
Intergovernmental:

State motor vehicle in-lieu tax (MVLF)
Use of money and property
Capital contributions
Other general revenues
Pension credit
Total general revenues
Transfers
Total general revenues and transfers
Change in net positio
n
Net position:

Beginning of year
Net position - Ending
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 20 ITEM 1
Governmental Business-Type
Activities Activities Totals
2,292,108$ -$ 2,292,108$ (17,361,848) - (17,361,848) 3,262,135 - 3,262,135 421,269 - 421,269 (1,665,102) - (1,665,102) (95,972) - (95,972) (9,354) - (9,354) (13,156,764) - (13,156,764) - 9,814,981 9,814,981 - 2,269,399 2,269,399 - (83) (83) - 12,084,297 12,084,297 (13,156,764) 12,084,297 (1,072,467)
2,474,768 - 2,474,768
9,587,174 - 9,587,174
1,057,622 - 1,057,622
961,921 - 961,921
4,284,543 - 4,284,543
438,261 126,380 564,641
- 8,825,000 8,825,000 74,983 3,000,000 3,074,983
2,984,817 577,350 3,562,167
21,864,089 12,528,730 34,392,819
(304,000) 304,000 -
21,560,089 12,832,730 34,392,819
8,403,325 24,917,027 33,320,352
83,584,334 56,376,381 139,960,715
91,987,659$ 81,293,408$ 173,281,067$
Net (Expense) Revenue and
Changes in Net Position
21 ITEM 1
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22 ITEM 1
Fund
Governmental Funds:

General
Street Expansion Special Revenue
Home Program Grants Special Revenue
CDBG Grants Special Revenue Accounts for activities related to housing and the related CDBG funding.

Accounts for activities related to housing and the related Home Program funding.

FUND FINANCIAL STATEMENTS
Description
Primary operating fund of the City; accounts for all activities except those legally or administratively required to be accounted for in other funds.

Accounts for fees collected from developers to be used to widen streets due to the traffic impact of their projects.

MAJOR FUNDS
23 ITEM 1
City of Ceres, California
Balance Sheet
Governmental Funds
June 30, 2022
Street Home CDBG
General Expansion Program Grants Grants
Fund Special Revenue Special Revenue Special Revenue
ASSETS
Cash and investments 6,146,863$ 2,077,098 $ 1,123,368 $ 658,026 $ Receivables:

Interest 1,315 123 - 37 Intergovernmental - - - - Loans receivable - - 5,463,556 454,649 Other receivable 3,922,431 - - 4,058 Due from other funds 3,627,138 - - - Advances to Former Redevelopment Agencies
Private Purpose Trust 1,978,636 - - - Prepaid items 15,345 - - - Inventory 768 - - - Total assets 15,692,496$ 2,077,221 $ 6,586,924 $ 1,116,770$

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 2,911,696 $ 83,975 $ - $ 174,462$ Deposits payable 2,435,336 - - - Due to other funds - - - - Unearned revenue - - - - Advances from other funds 2,134,918 - - - Total liabilities 7,481,950 83,975 - 174,462 Deferred inflows: Unavailable revenue 567,405 - 5,463,557 454,649 Total liabilities and deferred inflows 8,049,355 83,975 5,463,557 629,111 Fund balances:

Nonspendable:

Prepaid items 15,345 - - - Restricted reported in:

Special revenue fund
s - - 1,123,367 487,659 Committed - - - - Assigned reported in:

Special revenue funds - 1,993,246 - - Unassigned (deficit), reported in:

General fund 7,627,796 - - - Special revenue funds - - - - Total fund balances 7,643,141 1,993,246 1,123,367 487,659 Total liabilities and fund balances 15,692,496$ 2,077,221 $ 6,586,924 $ 1,116,770 $ Major Funds
The accompanying notes are an integral part of these basic financial statements. 24 ITEM 1
Nonmajor
Governmental
Funds Totals
18,038,421$ 28,043,776$
1,350 2,825
1,144,982 1,144,982
344,050 6,262,255
1,089,887 5,016,376
- 3,627,138
- 1,978,636
- 15,345
768
20,618,690$ 46,092,101$
398,746$ 3,568,879$
115,983 2,551,319
3,095,098 3,095,098
- -
- 2,134,918
3,609,827 11,350,214
344,050 6,829,661
3,953,877 18,179,875
- 15,345
10,896,850 12,507,876
82,637 82,637
9,008,672 11,001,918
- 7,627,796
(3,323,346) (3,323,346)
16,664,813 27,912,226
20,618,690$ 46,092,101$
25 ITEM 1
City of Ceres, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2022
Total fund balances - total governmental funds 27,912,226$ Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet. 77,743,263
Compensated absences (1,574,844) $
Due after one year (229,285)
Net pension obligation (19,395,311) (21,199,440)
6,262,256
Pension obligatons result in deferred outflows and inflows of resource s
associated with actuarial value of contributions, assets, and liabilities Deferred outflows 7,559,716
Deferred inflows (13,092,835) (5,533,119)
Current assets 5,247,539
Noncurrent assets 3,835,629
Accounts payable and accrued liabilities (740,718)
Long-term liabilities (1,539,977) 6,802,473
Net position of governmental activities 91,987,659$
The accompanying notes are an integral part of these basic financial statements.

Amounts reported for governmental activities in the Statement of Net Position are different because:

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Governmental funds notes receivable from various loan programs are deferred under the current financial resources measurement focus. The notes receivable are recognized in the government-wide Statement of Net Position under the accrual basis of accounting.

Internal services funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service funds are:
26 ITEM 1
City of Ceres, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2022
Governmental Internal
Funds Service Changes Statement of
Balance Sheet Reclassifications Funds in GAAP Net Position ASSETS
Current assets:

Cash and investments 28,043,776$ -$ 5,247,132$ -$ 33,290,908$ Receivables:

Interest 2,825 - - - 2,825 Intergovernmental 1,144,982 - - - 1,144,982 Other receivable 5,016,376 - 407 - 5,016,783 Due from other funds 3,627,138 (3,627,138) - - - Prepaid items 15,345 - - - 15,345 Inventory 768 - - - 768 Internal balances - - - - - Total current assets 37,851,210 (3,627,138) 5,247,539 - 39,471,611 Noncurrent assets:

Advances to(from) fiduciary activities 1,978,636 - - - 1,978,636 Loans/Notes receivable 6,262,255 - - (567,405) 5,694,850 Capital assets, net - - 3,835,629 77,743,263 81,578,892 Total noncurrent assets 8,240,891 - 3,835,629 77,175,858 89,252,378

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows: Pension Plan - - - 7,559,716 7,559,716 Total assets and deferred outflows of resources 46,092,101$ (3,627,138)$ 9,083,168$ 84,735,574$ 136,283,705$

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 3,568,879$ -$ 208,678$ -$ 3,777,557$ Deposits payable 2,551,319 - - - 2,551,319 Due to other funds 3,095,098 (3,627,138) 532,040 - - Due within one year - - - 112,938 112,938 Total current liabilities 9,215,296 (3,627,138) 740,718 112,938 6,441,814 Noncurrent liabilities:

Long-term debt:

Advances from other funds 2,134,918 - - - 2,134,918 Compensated absences - - 135,180 1,574,844 1,710,024 Due after one year - - - 116,347 116,347 Liability for claims - - 1,404,797 - 1,404,797 Net pension obligation - - - 19,395,311 19,395,311 Total noncurrent liabilities 2,134,918 - 1,539,977 21,086,502 24,761,397 Total liabilities 11,350,214 (3,627,138) 2,280,695 21,199,440 31,203,211 Deferred inflows: Grants 6,262,256 - - (6,262,256) - Deferred inflows: Unavailable revenue 567,405 - - (567,405) - Deferred inflows: Pension plan - - - 13,092,835 13,092,835 Total liabilities and deferred inflows 18,179,875 (3,627,138) 2,280,695 27,462,614 44,296,046

FUND BALANCES/NET POSITION
Fund balances:

Nonspendable 15,345 (15,345) - - - Restricted 12,507,876 (12,507,876) - - - Committed 82,637 (82,637) - - - Assigned 11,001,918 (11,001,918) - - - Unassigned 4,304,450 (4,304,450) - - - Net position:

Net investment in capital assets - - 3,835,629 76,946,573 80,782,202 Restricted - - - 12,507,876 12,507,876 Unrestricted - 27,912,226 2,966,844 (32,181,489) (1,302,419) Total fund balances/ net position 27,912,226 - 6,802,473 57,272,960 91,987,659 Total liabilities, deferred inflows, and net position 46,092,101$ (3,627,138)$ 9,083,168$ 84,735,574$ 136,283,705$ The accompanying notes are an integral part of these basic financial statements. 27 ITEM 1
City of Ceres, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2022
Street Home CDBG
General Expansion Program Grants Grants
Fund Special Revenue Special Revenue Special Revenue
REVENUES:

Property and other taxes 18,457,995$ -$ -$ -$ Licenses and permits 2,305,069 - - - Fines, forfeitures and penalties 113,447 - - - Charges for services 1,502,047 - - - Intergovernmental 1,354,532 1,444,337 351,221 22,555 Use of money and property 202,441 2,860 - 1,124 Other revenues 14,078 - 4,919 - Total revenues 23,949,609 1,447,197 356,140 23,679 EXPENDITURES:

Current:

General government 2,513,556 - - - Public safety 19,678,543 - - - Engineering and Transportation 56,441 20,394 - - Public works 389,508 - - - Community services 2,595,711 - - - Economic development - - 20,523 180 Capital outlay 41 145,213 - 175,139 Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 25,233,800 165,607 20,523 175,319

REVENUES OVER (UNDER)
EXPENDITURES (1,284,191) 1,281,590 335,617 (151,640) OTHER FINANCING SOURCES (USES):

Transfers in 825,881 - - - Transfers out (316,853) - - - Total other financing sources (uses) 509,028 - - - Net change in fund balances (775,163) 1,281,590 335,617 (151,640) FUND BALANCES:

Beginning of year 8,418,304 711,656 787,750 639,299 End of year 7,643,141$ 1,993,246 $ 1,123,367$ 487,659$ The accompanying notes are an integral part of these basic financial statements.

Major Funds
28 ITEM 1
Other
Governmental
Funds Totals
6,049,611$ 24,507,606$
- 2,305,069
47,770 161,217
709,287 2,211,334
12,760,253 15,932,898
36,652 243,077
3,248 22,245
19,606,821 45,383,446
737,987 3,251,543
4,356,482 24,035,025
287,794 364,629
1,509,621 1,899,129
772,324 3,368,035
16,145 36,848
3,459,951 3,780,344
109,625 109,625
9,354 9,354
11,259,283 36,854,532
8,347,538 8,528,914
7,811 833,692
(820,839) (1,137,692)
(813,028) (304,000)
7,534,510 8,224,914
9,130,303 19,687,312
16,664,813$ 27,912,226$
29 ITEM 1
City of Ceres, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2022
Capital
Debt/ Asset Internal Government-
Fund Based Compensated Deferred (Additions)/ Service wide Functions/Programs Totals Absences Revenue Depreciation Retirements Funds Totals Governmental activities:

General government 3,251,543 $ (144,313) $ 370,800 $ 1,918,584$ -$ 5,396,614 $ Public safety 24,035,025 - - 327,831 - - 24,362,856 Engineering and Transportation 364,629 - - - - - 364,629 Public works 1,899,129 - - 3,509,503 727,303 (109,982) 6,025,953 Community services 3,368,035 - - 25,286 - - 3,393,321 Economic development 36,848 - - 71,467 - - 108,315 Capital outlay 3,780,344 - - - (3,780,344) - - Debt service/Interest 118,979 (109,625) - - - - 9,354 Total governmental activities 36,854,532$ (253,938)$ 370,800 $ 5,852,671$ (3,053,041)$ (109,982)$ 39,661,042$ The accompanying notes are an integral part of these basic financial statements. 30 ITEM 1
City of Ceres, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2022
Net change in fund balances - total governmental funds 8,224,914$ Capital asset purchases capitalized 3,053,041$
Depreciation expense (5,852,671) (2,799,630)
109,625
Change in compensated absences 144,313
Pension credit 2,984,817 3,129,130
Deferred inflows (370,800)
109,982
Change in net position of governmental activities 8,403,221$ Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

The accompanying notes are an integral part of these basic financial statements.

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Deferred Inflows related to the notes receivables in the governmental fund are reversed to reduce the expenditures of loan payments in the Government-Wide Financial Statements.

Internal services funds are used by management to charge the costs of certain activities, such as risk management, to individual funds. The change in net position of the Internal Service Funds is included in the governmental activities in the government-wide Statement of Net Position less amounts due to changes in capital assets reported above for capital assets.

Repayment and issuance of debt is an expenditure and other financing source in the governmental funds, but the repayment reduces and the issuance increases long-term liabilities in the Statement of Net Position.
31 ITEM 1
City of Ceres, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General Fund and Major Special Revenue Funds For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes 18,143,504$ 18,143,504 18,457,995$ 314,491$ Licenses and permits 2,183,500 2,183,500 2,305,069 121,569 Fines, forfeitures and penalties 68,000 68,000 113,447 45,447 Charges for services 1,871,818 1,871,818 1,502,047 (369,771) Intergovernmental 1,464,000 1,589,081 1,354,532 (234,549) Use of money and property 170,600 170,600 202,441 31,841 Other revenues 50,000 50,000 14,078 (35,922) Total revenues 23,951,422 24,076,503 23,949,609 (126,894) EXPENDITURES:

Current:

General government 2,907,856 2,941,264 2,513,556 427,708 Public safety 18,534,257 18,663,384 19,678,543 (1,015,159) Engineering and Transportation 121,511 121,511 56,441 65,070 Public works 490,511 490,601 389,508 101,093 Community services 2,930,489 2,992,337 2,595,711 396,626 Capital outlay - 10,204 41 10,163 Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures 24,984,624 25,219,301 25,233,800 (14,499)

REVENUES OVER (UNDER)
EXPENDITURES (1,033,202) (1,142,798) (1,284,191) (141,393) OTHER FINANCING SOURCES (USES):

Proceeds from sales of assets - - - - Transfers in 844,247 844,247 825,881 (18,366) Transfers out (320,612) (320,612) (316,853) 3,759 Total other financing sources (uses) 523,635 523,635 509,028 (14,607) Net change in fund balances (509,567) (619,163) (775,163) (156,000) FUND BALANCES:

Beginning of year 8,418,304 8,418,304 8,418,304 - End of year 7,908,737$ 7,799,141 $ 7,643,141 $ (156,000) $ The accompanying notes are an integral part of these basic financial statements.

General Fund
Budgeted Amounts
32 ITEM 1
Variance w/Final
Positive
Original Final Actual (Negative)
-$ -$ -$ -$ - - - - - - - - - - - - 300,000 300,000 1,444,337 1,144,337
15,000 15,000 2,860 (12,140)
- - - - 315,000 315,000 1,447,197 1,132,197 2,066 2,066 - 2,066
- - - - 20,000 27,000 20,394 6,606
- - - - - - - - - 572,698 145,213 427,485 - - - - - - - - 22,066 601,764 165,607 436,157 292,934 (286,764) 1,281,590 1,568,354 -
- - -
- - - - - - - - - - - - 292,934 (286,764) 1,281,590 1,568,354 711,656 711,656 711,656 -
1,004,590$ 424,892$ 1,993,246$ 1,568,354$
Street Expansion Special Revenue Fund
Budgeted Amounts
(continued)
33 ITEM 1
City of Ceres, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General Fund and Major Special Revenue Funds, Continued For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes - $ - $ - $ -$ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Charges for services - - - - Intergovernmental 0- 351,221 351,221 Use of money and property - - - - Other revenues - - 4,919 4,919 Total revenues - - 356,140 356,140 EXPENDITURES:

Current:

General government - - - - Public safety - - - - Engineering and Transportation - - - - Public works - - - - Community services - - - - Economic development 120,140 120,140 20,523 99,617 Capital outlay - - - - Total expenditures 120,140 120,140 20,523 99,617

REVENUES OVER (UNDER)
EXPENDITURES (120,140) (120,140) 335,617 455,757 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (120,140) (120,140) 335,617 455,757 FUND BALANCES (DEFICIT):

Beginning of year 787,750 787,750 787,750 - End of year 667,610 $ 667,610 $ 1,123,367 $ 455,757$ The accompanying notes are an integral part of these basic financial statements.

Budgeted Amounts
Home Program Grants Special Revenue Fund
34 ITEM 1
Variance w/Final
Positive
Original Final Actual (Negative)
- $ - $ - $ -$ - - - - - - - - - - - - 175,000 175,000 22,555 (152,445)
4,600 4,600 1,124 (3,476)
- - 0 -
179,600 179,600 23,679 (155,921) - - - - - - - - - - - - - - - - - - - - 302,950 302,950 180 302,770
235,000 704,943 175,139 529,804
537,950 1,007,893 175,319 832,574
(358,350) (828,293) (151,640) 676,653
- - - - -
- - -
- - - - (358,350) (828,293) (151,640) 676,653
639,299 639,299 639,299 -
280,949 $ (188,994)$ 487,659 $ 676,653$
(concluded)
CDBG Grants Special Revenue Fund
Budgeted Amounts
35 ITEM 1
This page intentionally left blank.
36 ITEM 1
Fund
Major Funds:

Water
Sewer

STANCOG

PROPRIETARY FUNDS
Accounts for the operation of the City's water utility. It is a self- supporting activity that provides services on a user-charge basis to residents and businesses located in the City.

Accounts for the operation of the City's sewer utility. It is a self- supporting activity that provides services on a user-charge basis to residents and businesses located in the City.

Accounts for local transportation funds restricted to transit, street, pedestrian, and bike purposes funded through passenger fares.

Description
37 ITEM 1
City of Ceres, California
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Activities -
Internal
Service Funds
Water Sewer STANCOG Totals Totals
Current assets:

Cash and investments 20,249,659$ 20,050,875$ 555,044$ 40,855,578$ 5,247,132$ Cash and investments with trustee/fiscal agent 62 - - 62 - Accounts receivable (net of uncollectible) 874,245 691,732 - 1,565,977 407 Interest receivable 3,237 1,858 53 5,148 - Total current assets 21,127,203 20,744,465 555,097 42,426,765 5,247,539 Non-current assets:

Intangible assets 33,620,000 - - 33,620,000 - Property, plant and equipment 38,294,943 29,673,985 - 67,968,928 9,272,454 Less accumulated depreciation (13,953,312) (15,539,669) - (29,492,981) (5,436,825) Property, plant, and equipment, net 57,961,631 14,134,316 - 72,095,947 3,835,629 Advances to other funds - 2,134,918 - 2,134,918 - Total non-current assets 57,961,631 16,269,234 - 74,230,865 3,835,629 Total assets 79,088,834 37,013,699 555,097 116,657,630 9,083,168 Deferred outflows: Pension Plan 548,272 553,730 15,792 1,117,794 - Total assets and deferred outflows 79,637,106$ 37,567,429 $ 570,889 $ 117,775,424$ 9,083,168 $

LIABILITIES AND NET POSITION
Current liabilities:

Accounts payable and accrued liabilities 653,016 $ 546,213 $ - $ 1,199,229$ 208,678 $ Deposits payable 524,349 - - 524,349 - Unearned revenue 141,713 - - 141,713 - Interest payable 12,412 16,582 - 28,994 - Due to other funds - - - - 532,040 Current portion of long-term debt 825,379 272,000 - 1,097,379 - Total current liabilities 2,156,869 834,795 - 2,991,664 740,718 Long-term liabilities:

Compensated absences 179,046 159,230 - 338,276 135,180 Due after one year 22,563,221 5,296,000 - 27,859,221 - Liability for claims - - - - 1,404,797 Net pension obligation 1,315,878 1,473,515 55,781 2,845,174 - Total long-term liabilities 24,058,145 6,928,745 55,781 31,042,671 1,539,977 Total liabilities 26,215,014 7,763,540 55,781 34,034,335 2,280,695 Deferred inflows: Pension Plan 1,205,101 1,226,849 15,731 2,447,681 - Total liabilities and deferred inflows 27,420,115 8,990,389 71,512 36,482,016 2,280,695 Net Position:

Net investment in capital assets 35,398,410 8,838,316 - 44,236,726 3,835,629 Unrestricted 16,818,581 19,738,724 499,377 37,056,682 2,966,844 Total net position 52,216,991 28,577,040 499,377 81,293,408 6,802,473 Total liabilities, deferred inflows, and net
position 79,637,106$ 37,567,429 $ 570,889 $ 117,775,424$ 9,083,168 $ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these basic financial statements. 38 ITEM 1
City of Ceres, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities -
Internal
Service Funds
Water Sewer STANCOG Totals Totals
OPERATING REVENUES:

Charges for services 16,410,146 $ 10,256,575 $ - $ 26,666,721$ - $ Interdepartmental charges - - - - 7,392,056 Other operating 633,226 398,724 - 1,031,950 141,565 Total operating revenues 17,043,372 10,655,299 - 27,698,671 7,533,621 OPERATING EXPENSES:

Salaries and benefits 2,513,507 2,478,571 - 4,992,078 1,985,555 Contractual and other services 811,205 590,605 83 1,401,893 357,448 Materials and supplies 1,156,864 380,843 - 1,537,707 1,275,096 Depreciation and amortization 1,094,938 858,588 - 1,953,526 631,436 Other operating costs 1,550,477 4,077,293 - 5,627,770 2,338,937 Total operating expenses 7,126,991 8,385,900 83 15,512,974 6,588,472 OPERATING INCOME (LOSS) 9,916,381 2,269,399 (83) 12,185,697 945,149 NONOPERATING REVENUES (EXPENSES):

Debt issuance costs (101,400) - - (101,400) - Investment income 55,068 52,353 1,621 109,042 (1) Gain (Loss) on sale of assets - 17,338 - 17,338 - Interest and debt service expenses - - - - - Settlement revenue 3,000,000 - - 3,000,000 - Pension credit 291,502 285,848 - 577,350 - Capital contributions 8,825,000 - - 8,825,000 - Total non-operating revenues 12,070,170 355,539 1,621 12,427,330 (1)

NET INCOME (LOSS) BEFORE
TRANSFERS 21,986,551 2,624,938 1,538 24,613,027 945,148 Transfers in 212,000 304,000 - 516,000 - Transfers out (212,000) - - (212,000) - Total Transfers - 304,000 - 304,000 - CHANGE IN NET POSITION 21,986,551 2,928,938 1,538 24,917,027 945,148 NET POSITION:

Beginning of year 30,230,440 25,648,102 497,839 56,376,381 5,857,325 End of year 52,216,991$ 28,577,040 $ 499,377 $ 81,293,408 $ 6,802,473 $ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these basic financial statements. 39 ITEM 1
City of Ceres, California .

Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities -
Internal
Service Funds
Water Sewer STANCOG Totals Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided - $ - $ - $ - $ 7,392,649$ Cash receipts from customers 17,480,271 10,859,661 - 28,339,932 - Cash payments to suppliers for goods and services (3,386,480) (5,130,846) (523) (8,517,849) (1,545,647) Cash payments to employees for services (2,494,805) (2,526,052) - (5,020,857) (1,973,266) Cash receipts (payments) for loss claims - - - - (1,768,177) Net cash used by operating activities 11,598,986 3,202,763 (523) 14,801,226 2,105,559

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Other income received (101,400) - - (101,400) - Transfers received (paid) - 536,964 - 536,964 135,699 Changes in pension obligations - - - - - Non-operating revenue received 3,000,000 - - 3,000,000 - Net cash provided by noncapital financing
activities 2,898,600 536,964 - 3,435,564 135,699

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
(Acquisition) Disposal and construction of capital assets (31,160,971) (27,302) (31,188,273) (1,466,602) Proceeds from sale of capital assets - - - - - Interest paid - - - - - Payments on long-term debt (149,000) (263,000) - (412,000) - Net cash (used) by capital and related financing
activities (31,309,971) (290,302) - (31,600,273) (1,466,602) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 53,141 51,242 1,594 105,977 (1) Net cash provided by investing activities 53,141 51,242 1,594 105,977 (1) Net increase (decrease) in cash and cash
equivalents (16,759,244) 3,500,667 1,071 (13,257,506) 774,655 CASH AND CASH EQUIVALENTS:

Beginning of year 37,008,965 16,550,208 553,973 54,113,146 4,472,477 End of year 20,249,721$ 20,050,875$ 555,044$ 40,855,640$ 5,247,132$ Presentation in Statement of Net Position:

Cash and investments 20,249,659$ 20,050,875$ 555,044$ 40,855,578$ 5,247,132$ Cash and investments with trustee/fiscal agent 62 - - 62 - Total cash and investments 20,249,721$ 20,050,875$ 555,044$ 40,855,640$ 5,247,132$ Reconciliation of income (loss) from operations to
net cash used by operating activities:

Operating income (loss) 9,916,381$ 2,269,399$ (83)$ 12,185,697$ 945,149$ Adjustments to reconcile operating income (loss)
to net cash used in operating activities:

Depreciation and amortization 1,094,938 858,588 - 1,953,526 631,436 (Increase) decrease in current assets:

Accounts receivable 363,051 205,669 - 568,720 593 Increase (decrease) in liabilities:

Accounts payable and accrued liabilities 132,066 (82,105) (440) 49,521 130,091 Deposits payable (1,645) - - (1,645) - Unearned revenue 75,493 (1,307) - 74,186 -
Compensated absences 18,702 (47,481) - (28,779) 12,289 Increase (decrease) in claims liability - - - - 386,001 Net cash used by operating activities 11,598,986$ 3,202,763$ (523)$ 14,801,226$ 2,105,559$ Business-type Activities - Enterprise Funds
There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2022.

The accompanying notes are an integral part of these basic financial statements. 40 ITEM 1
City of Ceres, California
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
Successor
Agencies Westpointe
Private Assessmen t
Purpose District
Trust Debt Service
Funds Custodial Fun d
ASSETS
Current assets:

Cash and investments 6,548,843$ 301,244 $
Cash and investments with trustee/fiscal agent 2,061,500 - Interest receivable 469 30
Total current assets 8,610,812 301,274
Non-Current assets:

Long-term loans receivable 2,214,371 -
Construction in progress 12,500,147 -
Total non-current assets 14,714,518 -
Other assets:

Deferred charges
Total other assets - -
Total assets 23,325,330 301,274
Deferred outflows: Pension plan 73,249 - Total assets and deferred outflows 23,398,579$ 301,274 $

LIABILITIES AND NET POSITION
Current liabilities:

Accounts payable and accrued liabilities 910 $ 2,100 $ Interest payable 8,591 -
Compensated absences - current 11,507
Current portion of long term debt 1,697,415 - Total current liabilities 1,718,423 2,100
Long-term liabilities:

Advances from other government agencies 266,702 - Advances from Governmental Activities 1,978,636 - Due after one year 27,516,394 -
Net pension obligation 176,135 -
Total long-term liabilities 29,937,867 -
Total liabilities 31,656,290 2,100
Deferred inflows: Pension plan 115,285 - Total liabilities and deferred inflows 31,771,575 2,100 Net Position (Deficit):

Restricted for:

Redevelopment Dissolution (8,372,996) -
Individuals, organizations, and other governments - 299,174 Total liabilities, deferred inflows, and net position 23,398,579$ 301,274$ The accompanying notes are an integral part of these basic financial statements. 41 ITEM 1
City of Ceres, California
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
Successor
Agencies Westpointe
Private Assessment
Purpose District
Trust Debt Service
Funds Custodial Fund
ADDITIONS:

Property taxes 3,264,267 $ - $
Investment earnings 342,724 929
Other revenue 65,182 -
Total additions 3,672,173 929
DEDUCTIONS:

General and administrative 57,536 2,500 Salaries and benefits 196,648 -
Contractual and other services 74,019 - Materials and supplies - 26,988 Interest and debt service expenses 807,590 - Total deductions 1,135,793 29,488
CHANGE IN FIDUCIARY NET ASSETS 2,536,380 (28,559) NET POSITION (DEFICIT):

Beginning of year (10,909,376) 327,733
End of year (8,372,996)$ 299,174$
The accompanying notes are an integral part of these basic financial statements. 42 ITEM 1

43 NOTES TO BASIC FINANCIAL STATEMENTS
ITEM 1
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2022

Index to Notes to Basic Financial Statements

44 Page

Note 1 – Summary of Significant Accounting Policies ................................................................... 45 Financial Reporting Entity ............................................................................................................. 45 Basis of Accounting and Measurement Focus ............................................................................... 46 Assets, Liabilities, and Equity ....................................................................................................... 50 Revenues, Expenditures, and Expenses ......................................................................................... 56 Budgetary Accounting ................................................................................................................... 57

Note 2 – Cash and Investments ......................................................................................................... 59

Note 3 – Accounts Receivable ........................................................................................................... 61

Note 4 – Loans and Notes Receivable .............................................................................................. 62

Note 5 – Capital Assets ...................................................................................................................... 64

Note 6 – Accounts Payable and Accrued Liabilities ....................................................................... 66

Note 7 – Special Assessment Districts .............................................................................................. 66

Note 8 – Long-term Liabilities .......................................................................................................... 67

Note 9 – Net Position/ Fund Balances .............................................................................................. 69

Note 10 – Interfund Transactions .................................................................................................... 73

Note 11 – Risk Management ............................................................................................................. 76

Note 12 – Pension Plan ...................................................................................................................... 77

Note 13 – Abandoned Vehicle Abatement Program ....................................................................... 83

Note 14 – Successor Agency Trust for Assets of Former Redevelopment Agency ...................... 83

Note 15 – Commitments and Contingencies .................................................................................... 90

Note 16 – New Accounting Pronouncements ................................................................................... 90

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements
For the year ended June 30, 2022

45 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the City of Ceres, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standard s Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting pr inciples. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity

The City of Ceres (City) was in corporated on February 25, 1918, under the laws and regulations of the State of California (State). The City operates under a City Co uncil/Manager form of government and provides the following services: public safety (Police and Fire ), highways and streets, water service, sewer service, solid waste, storm water utility, public improve ments, planning and zoning, and general administration.

The financial statements of the City have been prepared in acco rdance with accoun ting principles generally accepted in the United States of America (GAAP) as ap plied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard- setting body for governmental accounting and financial reporting. On June 15, 1987, GASB iss ued a codification of the existing Governmental Accounting and Financ ial Reporting Standards which , along with subsequent GASB pronouncements (Statements and In terpretations), constitutes GAAP for governmental units. The City applies all GASB pronouncements to its activities.

In addition, the City applies all Financial Accounting Standard s Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) issued after November 30, 1989, unless they conflict with or contradict GASB pronouncements.

The more significant of these accounting policies are described below and, where appropriate, subsequent pronouncements will be referenced.

The City was incorporated under the General Laws of the State o f California and enjoys all the rights and privileges pertaining to such “General Law” cities. The City uses the City Council/Manager form of government. The financial reporting entity consists of: (a) the primary government, the City; (b) organizations for which the primary government is financially accountable; and (c) ot her organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary gove rnment are such that exclusio n would cause the reporting entity’s financial statements to be misleading or incomplete.

Component units are legally separ ate organizations for which th e elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government’s exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

A. Financial Reporting Entity, Continued

The City is the primary government unit. Component units are th ose entities which are financially accountable to the primary governm ent, either because the City appoints a voting majority of the component unit’s board, or because the component unit will prov ide a financial benefit or impose a financial burden on the City. The City currently has no blended or discretely reported component units.

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 accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets , liabilities, fund equity, re venues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

Government–Wide Financial Statements

The government–wide financial stat ements include a Statement of Net Position and a Statement of Activities and Changes in Net P osition. These statements presen t summaries of governmental and business-type activities for the City, the primary government, accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These government-wide financial st atements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets and related 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 acc ounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:

• Charges for services
• Operating grants and contributions
• Capital grants and contributions

Certain eliminations have been made as prescribed by GASB State ment 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, which are presented as internal balances and elimin ated in the total primary government column. Transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

Government–Wide Financial Statements, Continued

• Due to/from other funds
• Advances to/from other funds
• Transfers in/out

The City applies all applicable GASB pronouncements (including all National Council on Governmental Accounting (NCGA) Statements and Interpretations currently in e ffect) as well as the following pronouncements issued on or before November 30, 1989, to the bu siness-type activities, unless those pronouncements conflict with or co ntradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Inte rpretations, Accounting Princip les Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the committee on Accounting Procedure. The City applies all applicable FASB Statements and Interpretations issued after Nov ember 30, 1989, to proprietary funds, except those that conflict with or contradict GASB pronouncements.

Governmental Fund Financial Statements

Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major govern mental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria. The following were the City’s major governmental funds:

• The General Fund - Accounts for all general reve nues of the city not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are no t accounted for in other funds.

• Street Expansion Special Revenue Fund - Fees collected from developers to be used to widen streets due to the traffic impact of their projects.

• HOME Program Grants Special Revenue Fund - This fund is used to account for Federal funds used for housing assistance payments to low-income, elder ly, disabled, and handicapped people qualifying for the programs, as well as reha bilitation for rental property.

• Community Development Block Grant Special Revenue Fund - These funds are used to account for community development block grants that the City has been awarded and income received from loans granted to participants. The funds are primarily used for local home improvements and public infrastructure enhancements.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

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 Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both m easurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) are recognized when due. 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.

Deferred inflows arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Deferred inflows also arise when the government receives resources before it has a legal claim to them, as when grant mo nies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred inflows is removed from the balance sheet and revenue is recognized.

Reconciliation of the Fund Financial Statements to the Governme nt-Wide Financial Statements is provided to explain the differences between the two methods of measurement focus.

Proprietary Fund Financial Statements

Proprietary fund financial statements include a Statement of Ne t Position, a Statement of Revenues, Expenses, and Change in Net Position, and a Statement of Cash Flows for all proprietary funds. The City has determined that all its enterprise funds are major funds. T he following were the City’s major enterprise funds:

The Water Fund consists of:

• Water Service Fund - This fund was established as a separate fund to account for t he operation of the City's water utility. It is a self-supporting activity that provides services on a user-charge basis to residents and businesses located in the City.

• Water Quality Sinking Fund - Revenue from this fund come s from a $3.00 per account transfer from the Water Service added to the water bill. Expenditures are for water system improvements.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

• Water Supply Fund - Revenue from this fund come s from water connection fees.

Expenditures are for major system improvements, including debt service payments if the improvements are financed.

• 2009 Water Bond Fund – This fund is used to account for projects financed with 2009 Water Revenue Bonds. The bond funds are being used to finance t he acquisition and construction of certain improvements to the Water Enterprise system.

The Sewer Fund consists of:

• Sewer Main Line Construction Fund - Revenue from this fund comes from sewer connection fees. Expenditures are for plant improvements and pump station construction.

• Sewer Service Fund - This fund was established as a separate fund to account for t he operation of the City's sewer u tility. It is a self-supporting activity that provides services on a user-charge basis to residents and businesses located in the City.

• 2009 Sewer Bond Fund – This fund is used to account for projects financed with 2009 Sewer Revenue Bonds. The bond funds are being used to finance t he acquisition and construction of certain improvements to the Sewer Enterprise system.

Stancog Dial-A-Ride Fund - This fund is a local transportation fund restricted to transit, street, pedestrian, and bike purposes.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and ac tivities have been combined wit h the governmental activities in the government-wide financial statements.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Ex penses, and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under th e accrual basis of accounting, revenues are recogniz ed in the period in which they are earned while expenses are recognized in the period in which a liability is incurred.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

B. Basis of Accounting and Measurement Focus, Continued

Proprietary Fund Financial Statements, Continued

Operating revenues in the propr ietary 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 Fidu ciary Net Position and Statement of Changes in Fiduciary Net Positi on. The City’s fiduciary funds i nclude both agency funds and private purpose trust funds. Agency Funds are custodial in nature (asse ts equal liabilities ) and do not involve measurement of results of operations. Private Purpose Trust Funds account for resources held for other individuals or entities in a manner similar to private enterprise. These funds are accounted for using the accrual basis of accounting.

C. Cash, Cash Equivalents, and Investments

The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account.

Disclosure requirements for Deposits and Investment Risks were made in the following areas:

• Interest Rate Risk
• Credit Risk
 Overall
 Custodial Credit Risk
 Concentrations of Credit Risk

In addition, other disclosures are specified including use of c ertain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

C. Cash, Cash Equivalents and Investments, Continued

The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California. LAIF has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, thes e Structured Notes and Asset-Backed Securities are subject to market risk as a result of changes in interest rates.

D. Restricted Cash and Investments

Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. Cash and investments are also restricted for deposits held for others within the enterprise funds.

E. Inventories

The City accounts for inventories using the first-in, first-out method. Inventories consist primarily of supplies and are carried at cost. Governmental fund type inventories are recorded as expenditures when consumed rather than when purchased.

F. Capital Assets

Government-Wide Financial Statements

Capital assets are valued at historical cost or estimated histo rical cost if actual historical cost was not available. Donated fixed assets are valued at their estimated fair market value on the date donated. City policy has set the capitalization threshold for reporting infrastructure at $100,000; all other capital assets are set at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings 50-60 years
Improvements other than buildings 30-50 years
Machinery and equipment 5-20 years
Infrastructure 15-50 years
ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

F. Capital Assets, Continued

Government-Wide Financial Statements, Continued

The City defines infra structure as the basic physical assets th at allow the City to function. The assets include streets, sewer, park lands, and buildings. Each major infrastructure system c an be divided into subsystems. For example, the street system can be subdivided in to pavement, curb and gutters, sidewalks, medians, streetlights, landscaping, and land. These subsystems were not delineated in the basic financial statements. The appropriate operating departmen t maintains information regarding the subsystems.

Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost.

For all infrastructure systems, the City elected to use the Bas ic Approach defined by GASB Statement No. 34, which requires all infrastructures be reported at histo rical cost and be depreciated over their estimated useful lives.

G. Long-Term Liabilities

Government-Wide Financial Statements

Long-term debt and other financia l obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line meth od. Bonds payable are reporte d net of the applicable premium or discount. Issuance costs are reported as deferred outflows.

Fund Financial Statements

The Governmental Fund Financial Statements do not present long- term debt. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of th e Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Proprietary Fund Financial Statem ents use the same principles a s those used in the Government-Wide Financial Statements.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

H. Compensated Absences

Government-Wide Financial Statements

For governmental and business-type activities, compensated abse nces are recorded as incurred and the related expenses and liabilities are reported in the appropriate activity.

Fund Financial Statements

In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City’s policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.

The City accrues vacation time payable to employees based on ag reements between the City and the various City employee bargaining units. Vacation time generally accrues as follows:

Y ears of Service Annual V acation Earned
1 - 4 2 weeks
5 - 10 3 weeks
11 - 19 4 weeks
20 + One day per year for each year over
20 to a maximum of 25 days per year

Employees may accumulate a maximum of 480 hours. Vacation is ac crued per pay period. Although new employees immediately begin earning vacation time, they are not eligible to use it until 30 days of service has passed. The accrued liability of governmental fund types for compensated absences is not expected to be paid from current available funds and, therefore, has been recorded in the governmental activities of the Government-Wide Financial Statements. The liability in proprietary fund types is carried as an obligation in the Fund Financial Statements and in the business-type activities of the Government- Wide Financial Statements. The City does not pay any post-employment benefits.

I. 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 stateme nt element, deferred outflows of resources, represents a consumption of net position that applie s to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has only has one item that qualifies for reporting in this category.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

I. Deferred outflows/inflows of resources, Continued

In addition to liabilities, the statement of financial position 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. The City h as one item reported as a deferred inflow of resources.

J. Net Position and Fund Equity

Government-Wide Financial Statements

In the Government-Wide Financial Statements, net position are classified in the following categories:

Net Investment in Capital Assets – This amount consists of capit al assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, co ntributors, or laws or regulations of other governments.

Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted.”

Fund Financial Statements

Governmental fund equity is classified as fund balance. Fund b alance is classified as nonspendable, restricted, committed, assigned or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City:

Nonspendable Fund Balance –

 Assets that will never convert to cash (prepaid items, inventory).  Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).
 Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

J. Net Position and Fund Equity, Continued

Government-Wide Financial Statements, Continued

Restricted Fund Balance –

 Resources that are subject to externally enforceable legal rest rictions imposed by parties altogether outside the government (Creditors, Grantors, Contributors and Other Governments).
 Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (Gas Tax).

Committed Fund Balance –

 Self-imposed limitations set in place prior to the end of the p eriod. (Encumbrances, economic contingencies and uncertainties)
 Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove.
 Council resolution is required to be taken to establish, modify or rescind a fund balance commitment.

Assigned Fund Balance –

 Amounts in excess of nonspendable, restricted and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance.  Assigned amounts for a specific purpose are as authorized by th e City’s Finance Director through its fund balance policy.

Unassigned Fund Balance –

 Residual net resources
 Total fund balance in the genera l fund in excess of nonspendabl e, restricted, committed and assigned fund balance (surplus).
 Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

K. Property Taxes

Under California law, property ta xes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The propert y taxes go into a pool and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are receivable from the county within ninety days after year end.

Lien Date January 1
Levy Date January 1
Due Date November 1 and February 1
Collection Date December 10 and April 10

Property taxes levied are recorded as revenue when received in the fiscal year of levy, because of the adoption of the “alternate met hod of property tax distribution, ” known as the Teeter Plan, by the City and the County of Stanislaus. The Teeter Plan authorizes the Au ditor/Controller of the County of Stanislaus to allocate 100% of the secured property taxes billed, but not yet paid.

L. Use of Estimates

The preparation of financial statements in conformity with gene rally accepted accounting principles requires management to make est imates and assumptions. These es timates and assumptions affect the reported amounts of assets and li abilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

O. Interfund Balances/Internal Balances

Advances to and advances from ot her funds represent interfund l oans in the fund financial statements.

Advances between funds are offs et by a fund liability or by deferred inflows in the applicable governmental funds to indicate that they are not expendable available financial res ources. Any unpaid interest due to lack of funds i n the borrowing fund increases t he principal owed and is reported in the lending fund as deferred inflows.

All other outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.

Any residual balances outstanding between the governmental acti vities and business-type activities are reported in the Government-Wide Financial Statements as “internal balances.”

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

P. Use of Restricted and Unrestricted Net Position

When an expense is incurred for purposes for which both restric ted and unrestricted net position is available, the City’s policy is to apply restricted net position first.

Q. Budgetary Accounting

The City followed these procedures in establishing the budgetar y data reflected in the financial statements:

1. Public hearings are conducted to obtain public comments. The Ci ty Council annually adopts the budget for the ensuing fiscal year prior to July 1st.

2. The City Manager is authorized to transfer budgetary amounts wi thin a Department; however, any revisions that alte r the total expenditures of any Department must be approved by the City Council.

3. Legally adopted budgets and form al budgetary integration is emp loyed as a management control device during the year for the General Fund and Special Revenue Funds. Formal budgetary integration is not employed for the debt service fund s because effective budgetary control is alternatively achieved through bond indenture provisions. The capital projects, proprietary and trust and agency funds are not budgeted.

4. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

5. Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budge ted expenditure amounts repres ent original appropriations adjusted for supp lemental appropriations during the year which were contingent upon new or additiona l revenue sources and reappropr iated amounts for prior year encumbrances. The City Manager may amend the budgeted amou nts within departmental expenditure classifi cations. Appropriation revisio ns made during the year ended June 30, 2022, were not significant.

Appropriations lapse at the end of the fiscal year and then are re-budgeted for the coming year.

Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount o f annual appropriations from th e proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fees sche dules, or an excess in one year may be o f f s e t a g a i n s t a d e f i c i t i n t h e following year. For the fiscal year ended June 30, 2022, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

Q. Budgetary Accounting, Continued

Budgeted appropriations for the v arious governmental funds beco me effective each July 1. The City Council may amend the budget during the fiscal year. The legal level of budgetary control has been established at the fund level. Appropriations generally lapse a t the end of the fiscal year to the extent they have not been expended or encumbered.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

59 2. CASH AND INVESTMENTS

At June 30, 2022, the City’s pooled cash and investments, classified by maturity, consisted of the following stated at fair market value:

Fair
< 1 1 to 2 > 2 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value:

Cash in bank -$ - $ - $ 37,173,536$ 37,173,536 $ Petty cash - - - 6,450 6,450 Total pooled items - - - 37,179,986 37,179,986 Pooled investments, at fair value
Interest obligations
Par Rtae
$2,964,000 1.0 - 2.5% Domestic Time Deposits 984,399 1,234,000 745,601 - 2,964,000 $1,510,016 .075 - 2.75% US Government Agency Securities 499,528 2,010,548 12,999,940 - 15,510,016 Municipal Investor Account 22,879,977 - - - 22,879,977 State of California Local Agency Investment Fund 4,524,156 - - - 4,524,156 Total pooled investments - interest obligations 28,888,060 3,244,548 13,745,541 - 45,878,149 Total cash equivalents and investments pooled 28,888,060$ 3,244,548$ 13,745,541$ 37,179,986$ 83,058,135$ Amounts reported in:

Government activities 33,290,908$
Business-type activities:

Unrestricted cash and investments 40,855,578
Cash and investments with trustee/fiscal agent 62
Fiduciary activities:

Unrestricted cash and investments 6,850,087
Cash and investments with trustee/fiscal agent 2,061,500 Total 83,058,135$
Maturities (in years)

Investment Type Fair Value Maturity (in years)
Domestic Time Deposits 2,964,000$ 0.02
US Governments Agency Securities 15,510,016 1.72
Municipal Investor Account 22,879,977 0.00
Local Agency Investment Fund 4,524,156 0.00
Total fair value 45,878,149$

California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. During the year ended June 30, 20 22, the City’s permissible investments included the following instruments:

Medium-term Corporate Notes Commercial Paper Treas ury Bills and Notes Certificates of Deposit Repurchase Agreements Passbook Savings Ac counts Bankers' Acceptances G overnment Agency Securities Local Agency In vestment Fund ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

60 2. CASH AND INVESTMENTS, Continued

Interest rate risk – In accordance with its investment policy, the City manages its exposures to declines in fair values by limiting the weighted average maturity of its investment portfolio to less than 5 years. As of June 30, 2022, the weighted average maturity was not applicable because all balances are current.

Credit risk – It is the City’s policy that commercial paper has a rating of “A1” or higher by a nationally recognized statistical rating or ganization (NRSRO) and with a maturity date not exceeding 180 days from the date of purchase. Medium-term notes, with a final maturity not exceeding five years from the date of purchase, must have a rating of A or the equivalent by a NRSRO. Federal instrumentalities must have a rating of AAA or the equivalent by a NRSRO at the time o f purchase with a maximum maturity of five years at the time of pur chase. The LAIF, administered by the State of California, has a separate investment policy, governed by Government Code Sections 16480-1 6481.2, that provides credit standards for its investments.

Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s to tal investments. The investments made by the City Treasurer are limited to those allowable under State s tatutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year.

The City participates in an inve stment pool managed by the Stat e of California titled Local Agency Investment Fund (LAIF) which has invested 1.88% of the pool fun ds in Structured Notes and Asset- Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing th ese investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to changes in interest rates.

Custodial credit risk – deposits. For deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned. The City’s Investment Policy addresses custodial credit risk, which follows the Government Code.

At June 30, 2022, the carrying amount of the City’s deposits was $37,173,536 and the balance in financial institutions was $34,456,288. Of the balance in financial institutions, $500,000 was covered by federal depository insurance and $33,956,288 was collateralized as required by State law (Government Code Section 53630), by the pledging financial institution with assets held in a common pool for the City and other governmental agencies, but not in the name of th e City. As of June 30, 2022, the City’s investments were held by the City’s custodial agent, but not in the City’s name, and were insured up to specified limits by the Securities Investor Protection Corporat ion (SIPC) and supplemental private insurance up to a limit of $150 million.

Custodial credit risk – investments. For investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside counterparty. For the investments maintained by the City, no security was uninsured or unregistered or held by a brokerage firm which is also the counterparty for the security.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

61 2. CASH AND INVESTMENTS, Continued

Investment in LAIF: The City is a voluntary participant in California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statute and is chaired by the State Treasurer who is responsible for day to day administration of LAIF. The total amount invested by all public agencies as of June 30, 2022 was $35,761,173,309 of which the City had a balance of $4,524,156. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2022 has a portfolio with market valuation of $193,463,490 thousand. Of the total invested, 98.12% was invested in non-derivative financial products and 1.88% in structured notes and asset-backed securities. The fair value of the City’s investmen t in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share o f the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting rec ords maintained by LAIF, which are recorded on an amortized cost basis.

3. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following at June 30, 2022:

Governmental Business-type Fiduciary
Activities Activities Activities Total
Current:

Accounts - $ 1,565,977$ - $ 1,565,977$ Interest 2,825 5,148 - 7,973 Intergovernmental 1,144,982 - - 1,144,982 Other receivable 5,016,783 - - 5,016,783 Total current 6,164,590 1,571,125 - 7,735,715 Noncurrent:

Loans receivable 6,262,255 - 2,214,371 8,476,626 Total noncurrent 6,262,255 - 2,214,371 8,476,626 Total receivables 12,426,845 $ 1,571,125 $ 2,214,371 $ 16,212,341 $

These amounts resulted in the following concentrations in receivables:

Other Governments 7.06%
Individuals/Businesses 61.94%
Financial 0.05%
Other 30.95%

Amounts do not indicate a signifi cant concentration (greater th an 25%) with any single individual, business, or agency.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

62 4. LOANS AND NOTES RECEIVABLE

Through the City’s various housing rehabilitation funds and first-time home buyer’s funds, the City has loaned funds to qualifying individuals and businesses. Interest rates vary depending on the terms of the loan. Interest is accrued on the loans that bear interest.

Loans and notes receivable for the year ended June 30, 2022, consisted of the following:

Beginning Ending
Description July 1, 2021 Additions (Deletions) June 30, 2022 First-Time Homebuyer Loans 2,319,535$ -$ (277,201)$ 2,042,334$ Housing Rehabilitation Loans:

CDBG Loan 219,397 - (2,092) 217,305 Emergency Repair Loan 331,709 - (24,903) 306,806 Begin Home Grant 409,670 - (65,620) 344,050 Total Housing Rehabilitation Loans 960,776 - (92,615) 868,161 Whitmore Oaks 865,361 - - 865,361 Della Tiara 2,486,399 - - 2,486,399 Total loans receivable 6,632,071$ -$ (369,816)$ 6,262,255$

The following is a summary of the loans and notes receivable outstanding as of June 30, 2022:

First-Time Homebuyer Loans

The City has provided various loa ns to assist first-time homebu yers with loans up to $50,000. Loan repayment is deferred for 30 years or until sale or refinancing of the property. Interest rates vary from 1% to 5%. Total first-time homebuyer loans outstanding at June 30, 2022 were $2,042,334.

Housing Rehabilitation Loans

The City administers various hous ing rehabilitati on loan programs using Community Development Block Grant funds and Begin Home Funds. Under these programs, i ndividuals with incomes below a certain level are eligible to receive low interest, variable te rm loans, secured by deeds of trust for rehabilitation work on their home s. Interest rates may vary fro m 0% to 3%. The loan repayments may be amortized over the life of the loans, deferred or a combination of both. Total rehabilitation loans outstanding at June 30, 2022 were $868,161.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

63 4. LOANS AND NOTES RECEIVABLE, Continued

Whitmore Oaks

The Whitmore Oaks loan was made to assist the developer with the costs to develop and construct a 53 unit apartment complex for seniors. The CRA provided a loan of $612,500 and the City, through the State’s HOME Investment Partnersh ip Program, provided a loan of up to $865,361. Loan provisions require the apartment complex pro vide not less than eleven affo rdable housing units to be rented to qualified very-low and low income persons and families. The CRA loan carries an interest rate of 3% starting 2015 and the note is payable in full in 2057. The HOME loan carries an interest rate of 3% starting in 2027 and the note is payable in full in 2042. The a mount outstanding at June 30, 2022 was $865,361.

Della Tiara

The CRA provided a loan to Della Tiara for the construction of a 26-unit apartment complex (the “Project) using HOME grant funds. The loan bears simple interest of 3% per year and interest begins to accrue January 1, 2015. The loan is deferred for 55 years. Comm encing in 2020, principal and interest is due in an amount equal to 35% of residual cash flow from the Project provided that the residual cash flow in any year is over $10,000. The amount outstanding at June 30, 2022 was $2,486,399.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

64 5. CAPITAL ASSETS

Capital asset activity for governmental activities for the year ended June 30, 2022, was as follows:

Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
Governmental activities:

Nondepreciable assets:

Land 14,753,193 $ - $ - $ 14,753,193$ Total nondepreciable assets 14,753,193 - - 14,753,193 Depreciable assets:

Buildings and improvements 41,061,742 172,064 - 41,233,806 Machinery & equipment 18,775,721 1,829,310 (1,529,295) 19,075,736 Infrastructure 106,499,757 1,051,667 - 107,551,424 Total depreciable assets 166,337,220 3,053,041 (1,529,295) 167,860,966 Total 181,090,413 3,053,041 (1,529,295) 182,614,159 Accumulated depreciation:

Buildings and improvements (18,374,111) (1,474,132) - (19,848,243) Machinery & equipment (13,065,043) (1,161,754) 1,528,415 (12,698,382) Infrastructure (65,271,857) (3,216,785) - (68,488,642) Total accumulated depreciation (96,711,011) (5,852,671) 1,528,415 (101,035,267) Net depreciable assets 69,626,209 (2,799,630) (880) 66,825,699 Total net capital assets 84,379,402 $ (2,799,630) $ (880) $ 81,578,892$

Depreciation expense for capital assets was charged to functions as follows:

General government 1,918,584$
Public safety 327,831
Public works 3,509,503
Community services 25,286
Economic development 71,467
Total 5,852,671$
ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

65 5. CAPITAL ASSETS, Continued

Capital asset activity for business-type activities for the year ended June 30, 2022, was as follows:

Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
Business-type activities:

Nondepreciable assets:

Land 3,291,818 $ - $ - $ 3,291,818$ Intangible asset - 33,620,000 33,620,000 Total nondepreciable assets 3,291,818 33,620,000 - 36,911,818 Depreciable assets:

Buildings and improvements 9,510,944 - - 9,510,944 Machinery & equipment 6,602,306 43,848 (15,838) 6,630,316 Infrastructure 42,169,088 6,366,763 - 48,535,851 Total depreciable assets 58,282,338 6,410,611 (15,838) 64,677,111 Total 61,574,156 40,030,611 (15,838) 101,588,929 Accumulated depreciation:

Buildings and improvements (6,052,764) (291,630) - (6,344,394) Machinery & equipment (5,420,965) (206,051) 15,838 (5,611,178) Infrastructure (16,081,565) (1,455,845) - (17,537,410) Total accumulated depreciation (27,555,294) (1,953,526) 15,838 (29,492,982) Net depreciable assets 30,727,044 4,457,085 - 35,184,129 Total net capital assets 34,018,862 $ 38,077,085 $ - $ 72,095,947$

Depreciation expense for business-type activity capital assets was charged to functions as follows:

Water 1,094,938$
Sewer 858,588

STANCOG -
Total 1,953,526$

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

66 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consisted of the following at June 30, 2022:

Governmental Business-type Fiduciary
Activities Activities Activities Total
Accounts payable 3,048,142 $ 1,199,229 $ 910 $ 4,248,281$ Accrued payroll and related liabilities 729,415 - 729,415 Total 3,777,557 $ 1,199,229 $ 910 $ 4,977,696$

These amounts resulted in the following concentrations in payables:

Vendors 85%
Employees 15%

Amounts do not indicate a significa nt concentration (greater th an 25%) with any single vendor or employee.

7. SPECIAL ASSESSMENT DISTRICTS

Special Assessment bonds have been issued under the 1915 Bond Act. The City is in no way liable for repayment of any bonds of the funds reflected in the Agency funds, according to bond counsel, but is acting only as an agent for the property owners/bond holders in collecting and forwarding the special assessments. Balances of the various assessment district bonds were as follows as of June 30, 2022:

2002 - WestPointe Refunding Reassessment District – Original Issue $2,960,000

In fiscal year 2003, the City issu ed the WestPointe Refunding Reassessment District Bonds. Proceeds from the sale of the bonds was used to call and redeem all of t he outstanding principal amount of the bonds previously issued by the City for its Westpointe Improvem ent Assessment District and to pay certain costs of issuance of the bonds. The City is the collect ing and paying agent for the bonds issued by the WestPointe Assessment Dist r i c t ( D i s t r i c t ) , b u t h a s n o d irect or contingent liability or moral obligation for the payment of these bonds. Assets held by the City on behalf of the District are recorded in an agency fund. Accordingly, the assets and outstanding bond obligations of the District are not presented in the accompanying Basic Financial Statements. As of June 30, 2022, there is no outstanding balance of the Westpointe Refunding Reassessment District Bonds.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

67 8. LONG-TERM LIABILITIES

The following is a summary of changes in long-term debt for business-type activities for the year ended June 30, 2022:

Balance Balance Due Within
July 1, 2021 Additions Retirements June 30, 2022 One Year Governmental Activities:

Loan Payable 338,910$ -$ (109,625)$ 229,285$ 112,938$ Total governmental activities 338,910$ -$ (109,625)$ 229,285$ 112,938$ Business-type Activities:
2020 Water Refunding Bonds 3,359,000$ -$ (149,000)$ 3,210,000$ 154,000$ 2020 Water Revenue Bonds 20,280,000 - - 20,280,000 675,000 Bond discount (101,400) - - (101,400) (3,621) 2020 Wastewater Refunding Bonds 5,831,000 - (263,000) 5,568,000 272,000 Total business-type activities 29,368,600$ -$ (412,000)$ 28,956,600$ 1,097,379$

Loan Payable – Original Issue $1,193,500

On March 15, 2012, the City entered into a loan agreement with the Energy Resources Conservation and Development Commission for the c onstruction of City street ligh ts. The loan principal is payable semiannually starting on December 22, 2012 through June 22, 202 4. The interest rate is 3.0% and is semiannually on December 22 and June 22. The outstanding balance at June 30, 2022 is $229,285.

2020 Water Revenue Bond, Refunding – Original Issue $3,658,000

The Ceres Financing Authority issued the Water Revenue Bonds, Series A in the amount of $4,750,000 to finance the acquisition and construction of certain improvements to the water enterprise system of the City. On March 1, 2020, the City issued $3,658,000 principal amount of 2021 Water Revenue Bonds to refund the outstanding principal balance of $3,830,000 for the 2009 Water Revenue Bonds. The reacquisition price did not exceed the net carrying amount of t he old debt. This refunding decreased its total debts service payments by $1,224,059 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $239,036. The bonds mature annually through June 1, 2038, in amounts ranging from $145,000 to $251,000. The interest rate is 3.27% and are payable semiannually on June 1 and December 1. Bonds ar e payable from revenues consisting primarily of installment payments payable by the City to the Authority under a Water Installment Purchase Agreement. The outstanding balance at June 30, 2022 is $3,210,000.

2020 Water Revenue Bond – Original Issue $20,280,000

On March 1 2021, The City issues $20,280,000 principal amount of 2020 Water Revenue Bonds, Interim Financing to finance a portion of the initial design and constr uction costs of a Regional Water Supply Project and to pay costs incurred in connection with the issuance of the Bonds. The principal of the bonds are payable annually starting on June 1, 2023 through June 1, 2050, in amounts ranging from $675,000 to $775,000. The interest rate is 0.50% and are payable semiannually on June 1 and December 1. Bonds are payable from revenues consisting primarily of installment p ayments payable by the City to the Authority under a Wastewater Ins tallment Purchase Agreement. Th e outstanding balance at June 30, 2022 is $20,280,000.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

68 8. LONG-TERM LIABILITIES, Continued

2020 Wastewater Revenue Bond, Refunding – Original Issue $6,355,000

On December 22, 2009, Ceres Financing Authority issued the Wastewater Revenue Bonds, Series A in the amount of $8,220,000 to finance the acquisition and constru ction of certain improvements to the wastewater enterprise system of the City. On March 1, 2020, the City issued $6,355,000 principal amount of 2020 Wastewater Revenue Bonds to refund the outstanding prin cipal balance of $6,650,000 for the 2009 Wastewater Revenue Bonds. The reacquisition price did not exceed the net carrying amount of the old debt. This refunding decreased its total debts service payments by $2,117,929 and to obtain an economic gain (difference between the present values of the deb t service payments on the old and new debt) of $411,327. The principal of the bonds are payable annu ally starting on Ju ne 1, 2020 through June 1, 2038, in amounts ranging from $270,000 to $438,000. The interest rate is 3.27% and are payable semiannually on June 1 and December 1. Bonds are payable from revenues consisting primarily of installment payments payable by the City to the Authority under a Wastewater Installment Purchase Agreement. The outstanding balance at June 30, 2022 is $5,568,000.

Future debt service at June 30, 2022, is as follows for all remaining debt except claims liabilities:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2023 154,000 $ 104,967 $ 675,000 $ 101,400 $ 272,000 $ 182,074 $ 2024 163,000 99,931 680,000 98,025 281,000 173,179 2025 167,000 94,601 685,000 94,625 289,000 163,991 2026 171,000 89,140 685,000 91,200 297,000 154,540 2027 179,000 83,549 690,000 87,775 309,000 144,828 2028-2032 976,000 326,608 3,505,000 386,775 1,693,000 566,299 2033-2037 1,149,000 156,306 3,590,000 298,275 1,989,000 270,920 2038-2042 251,000 8,208 3,685,000 207,575 438,000 14,323 2043-2047 - - 3,775,000 114,625 - - 2048-2052 - - 2,310,000 23,150 - - Total 3,210,000 $ 963,310 $ 20,280,000 $ 1,503,425 $ 5,568,000 $ 1,670,154 $ Due within one year 154,000$ 104,967 $ 675,000 $ 101,400 $ 272,000 $ 182,074 $ Due after one year 3,056,000 858,343 19,605,000 1,402,025 5,296,000 1,488,080 Total 3,210,000 $ 963,310 $ 20,280,000 $ 1,503,425 $ 5,568,000 $ 1,670,154 $ 2020 Water
B
usiness-type Activities
2020 Water
Refunding Bonds Revenue Bonds Refunding Bonds
2020 Wastewater

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

69 9. NET POSITION/ FUND BALANCES

Net Position

Governmental Business-type
Activities Activities Totals
Net investment in capital assets 80,782,202$ 44,236,726$ 125,018,928$ Restricted 12,507,846 - 12,507,846 Unrestricted (1,302,419) 37,056,682 35,754,263 Total 91,987,629$ 81,293,408$ 173,281,037$

 Restricted balances are for the same purposes as fund balance r estrictions because external restriction requirements are the same. See descriptions of the restrictions below.

Fund Balance

Nonspendable, Restricted and Committed fund balance consisted of the following at June 30, 2022:

Nonspendable:

Prepaid items 15,345 $
Total nonspendable 15,345 $
Restricted for:

Home Program 1,123,367 $
CDBG Programs 487,659
Storm Drain Benefit Districts 847,417
Eastgate Street Benefit District 69,755
BEGIN Grant Program 468,396
Program Income BEGIN 229,106
Measure H Income 2,607,824
SLESF 48,329
Dept of Conservation Grant 68,868
Fire Hydrant Benefit District 129,139
Transportation Development Act 25,418
Ceres Community Foundation 140,177
Measure L 4,475,124
Road Maintenance and Rehab 1,787,297
Total restricted 12,507,876$
Committed:

Community Facilities District 12,691$
Total committed 12,691$

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

70 9. NET POSITION/ FUND BALANCES, Continued

The following describe the purpose of each nonspendable, restriction and commitment used by the City:

Nonspendable

Petty cash – includes imprest balances, whic h do not represent available, spendable resources even though they are components of assets.

Prepaid items – used to segregate that portion of fund balance to indicate that prepaid amounts do not represent available, spendable resources even though they are components of assets.

Restricted

HOME Program – represents amounts restricted for housing under the HOME program.

CDBG Programs – represents amounts restricted for housing purposes by the Dep artment of Housing and Urban Development.

Storm Drain Benefit Districts – represents amounts restricted for use on the storm drain systems in the WestPointe, Eastgate, Mitchell Road, and North East benefit districts.

Eastgate Street Benefit District – represents amounts restricted f or use on the streets in the Eastgate benefit district.

BEGIN Grant Program – represents amounts restricted f or the Building Equity & Growth in Neighborhoods grant to be utilize d for deferred-payment second mortgage loans for down payment assistance to lower to moderate-income first-time homebuyers of new homes in projects with affordability enhanced by local regulatory incentives or barrier reductions.

Program Income BEGIN – represents amounts restricted for housing purposes under the BEGIN Grant Program.

Measure H Income– represents amounts restricted as a result of a voter approved ½-cent retail transaction and use tax (sales tax) for the improvement of poli ce, fire and 9-1-1 emergency response; to fund additional personnel and equipment costs.

State Gas Tax – represents amounts restricted for street purposes by the California Streets and Highways Code.

Street Light – Landscape District - represents amounts restricted for the City-wide 1972 Act Landscaping and Lighting District.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

71 9. NET POSITION/ FUND BALANCES, Continued

Restricted, Continued

Dept. of Conservation Grant – represents amounts restricted for department of conservation grant programs.

Fire Hydrant Benefit District – represents amounts restricted for use in the fire hydrant benefit district.

Transportation Development Act – represents amounts restricted by use by the Transportation Development Act for transportation, including streets and roads.

Ceres Community Foundation - represents amounts restricted for use for the Ceres Community Foundation.

Measure L – represents amounts restricted for use of local street and road improvements, arterial street widening, signalization, pedestrian, bicyclist, and driver safety improvement projects.

Road Maintenance and Rehab – Restricted to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and rep lacing aging bridges, and increasing access and mobility options to the traveling public.

Committed

Community Facilities District – amounts committed for Police, Fire, Parks and Administrative Services. These amounts can only be charged by Council Resolution.

Deficit fund balances consisted of the following:

Nonmajor Special Revenue Funds:

State Gas Tax - $306,053 – resulted from the deplet ion of the fund balance through operational expenditures.

Street Light - Landscape District - $292,378 resulted from depletion of the fund balance through operational expenditures.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

72 9. NET POSITION/ FUND BALANCES, Continued

CMAQ – $584542 resulted from the advance of funds through a Federal grant setup on a cost reimbursement basis with revenues to be received in future years.

Community Center - $2,021,486 resulted from operational costs in excess of revenues. The City plans to address this deficit in the next fiscal year.

Daniel Whitmore House - $120 resulted from the advance of funds from the City with re venues to be received in future years.

Clinton Whitmore Mansion - $116,404 resulted from the advance of funds from the City wit h revenues to be received in future years.

SB2 Planning Grants Program Fund - $2363 resulted from depletion of the fund balance through operational expenditures.

Excess of Expenditures and Transfers Over Appropriations: Expenditures and transfers exceeded appropriations for the year ended June 30, 2022, for the following funds:

Total Excess
Expenditures Expenditures
Final Budget and Transfers Over Appropriations
Governmental Activities
Major Funds:

General Fund 25,539,913 $ 25,550,653 $ (10,740) $ Non-major Funds:

Special Revenue Funds:

SLESF -$ 155,944$ (155,944)$ Traffic Safety - 47,770 (47,770) LLEBG - 13,876 (13,876)

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

73 10. INTERFUND TRANSACTIONS

Due to and due from other funds consisted of the following as of June 30, 2022:

Due from Due to
Other Funds Other Funds
Governmental Activities
Major Funds:

General Fund 3,627,138 $ - $
Total Major Funds 3,627,138 -
Non-major Funds:

Special Revenue Funds:

State Gas Tax - 382,822
Street Light-Landscape District - 272,831 Traffic Offender - 16,215 Traffic Safety - 2,313
CMAQ - 389,039
Transportation Development Act - 22,545 Community Center - 1,890,625 Daniel Whitmore House - 3 Clinton Whitmore Mansion - 116,342 SB2 Planning Grants Program Fund - 2,363 Total Non-major Special Revenue Funds - 3,095,098 Total Non-major Funds - 3,095,098 Internal Service Funds:

Equipment Revolving - 531,805 Risk Management - 235
Total Governmental Activities 3,627,138 $ 3,627,138 $

Due to and from balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

74 10. INTERFUND TRANSACTIONS, Continued

Activity for advances for the year ended June 30, 2022, was as follows:

Advances to Advances from
Other Funds Other Funds
Governmental Activities
Major Funds:

General Fund 1,978,636 $ - $
Total Governmental Activities 1,978,636 - Successor Agency
CRA - 1,422,787
SCRC - 555,849
Total Successor Agency - 1,978,636 Total Advances 1,978,636$ 1,978,636$

Advances from the General Fund to the Successor Agency - SCRC w ere for Redevelopment Agency start-up costs.

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2 ) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

75 10. INTERFUND TRANSACTIONS, Continued

Transfers consisted of the following at June 30, 2022:

Transfers In Transfers Out
Governmental Activities
Major Funds:

General Fund 825,881 $ 316,853 $
Total Major Funds 825,881 316,853
Non-major Funds:

Special Revenue Funds:

Measure H - 152,000
Community Facilities District - 668,839 Daniel Whitmore House 7,811 -
Total Non-major Special Revenue Funds 7,811 820,839 Total Governmental Activities 833,692 1,137,692 Proprietary Funds
Water 212,000 212,000
Sewer 304,000 -
Total Propretary Funds 516,000 212,000 Total Transfers 1,349,692$ 1,349,692$

Transfers In reported in the General fund from the Non-Major Governmental funds represent the City’s commitment to supporting recreatio n programs. Transfers In rep orted in Non-Major Governmental funds from Major Governmental funds represent support for community services expenses.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

76 11. RISK MANAGEMENT

The City participates with other public entities in a joint venture under a joint powers agreement which established the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and the CSJVRMA is such that the CSJVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1,000,000 of each general liability claim and $500,000 of each workers’ compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expens es, charges the City’s account for liability losses under the City’s self-insurance retention of $ 50,000 and workers’ compensation losses under the City’s self-insuranc e retention of $100,000. The CSJV RMA participates in an excess pool, which provides general liability coverage from $1,000,001 to $15,000,000. The CSJVRMA participates in an excess pool, which provides workers’ compensation coverage from $500,001 to $5,000,000 and also purchases excess insurance above the $5,000,000 to the statutory limit.

The CSJVRMA is a consortium of fifty-four (54) cities in San Jo aquin Valley, California. It was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets three to four times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.

The financial information from the audited financial statements of the CSJVRMA, as of June 30, 2022, the most recent available, is presented below:

Total assets 150,837,823$
Total liabilities 118,663,929
Total equities 32,173,894
Total revenues 58,911,480
Total expenses 47,584,363
Revenues over (under) expenses 11,327,117

Detailed financial information may be obtained from the CSJVRMA.

At the termination of the joint powers agreement and after all claims have been settled, any excess or deficit will be divided among the cities in accordance with the governing documents. There were no excess claims over premiums for any of the City’s risk manageme nt programs in 2021-2022, and there were no changes to the City’s insurance coverage from the prior year.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

77 11. RISK MANAGEMENT, Continued

The following chart depicts the claims payments and liability amounts for the years shown:

Current Year Claim Payments
Beginning of Claims and Changes for Current and End of Year Fiscal Year Year Liability in Estimates Prior Years Liability 2017-2018 880,392$ 2,011,551 $ (1,904,705) $ 987,238 $ 2018-2019 987,238 2,227,567 (2,240,605) 974,200 2019-2020 974,200 2,344,046 (2,540,939) 1,171,093 2020-2021 1,171,093 2,104,386 (2,256,683) 1,018,796 2021-2022 1,018,796 3,373,922 (2,987,921) 1,404,797

12. PENSION PLAN

A. General Information about the Pension Plan

Plan Description

The City is a participant in the Stanislaus County Employees Re tirement Association (StanCERA), a retirement system organized under the 1937 Retirement Act. Stan CERA is a cost-sharing multiple employer Public Employee Retirement System (PERS). StanCERA pro vides retirement and disability benefits, annual cost-of-living adjustments, and death benefits. Health and welfare insurance for retirees and their dependents is available however administered independ ently of StanCERA. The plan is administered by StanCERA. An actuarial valuation is performed for the system annually as a whole and the contribution rate is determined for each participating entity. The participating entities are the County, City of Ceres, and six special d istricts located in the County not governed by the County’s Board of Supervisors. StanCERA issues a C omprehensive Annual Financial R eport (CAFR) that includes financial statements and required supplementary information for StanCERA. The CAFR may be obtained by writing to Stanislaus County Employees Retirement Association, P.O. Box 3150, Modesto, CA 95353-3150 or by calling (209) 525-6393.

The StanCERA CAFR is prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due and a formal commitment to provide the contributions has be en made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Plan investments are reported at fair value. Short-term investm e n t s a r e r e p o r t e d a t c o s t , w h i c h approximates fair value. All other securities are valued at the last reported market price at current exchange rates.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

78 12. PENSION PLAN

Summary of Plans and Eligible Participants

General Tiers 1,2,4,5 (not open to new members) Vests after fiv e years of credited service and may retire at age 50 or older with 10 or more years of
membership with StanCERA or any age with 30
or more years of credited service.

General Tier 3 (not open to new members) Vests after ten years of credited service and may retire at age 55 with 10 or more years of credited
service.

General Tier 6 (open to new members) Vests after five years of credited service and may retire at age 52 with 5 years of service credit or
age 70 regardless of service credit.

Safety Tiers 1, 2, 4, 5 (not open to new members) Vests after f ive years of credited service and may retire at age 50 or older with 10 or more years of
membership with StanCERA or any age with 20
or more years of credited service.

Safety Tier 6 (open to new members) Vests after five years of credited service and may retire at age 50 with 5 years of service credit or
a
ge 70 regardless of service credit.

Benefits Provided

Members terminating employment before accruing ten years for Tier 3 of retirement service credit forfeit the right to receive retirement benefits unless they establish reciprocity with another public agency within the prescribed time period. Non- vested members who terminate se rvice are entitled to withdraw their accumulated contributions plus accrued interest. Members who terminate after earning five or ten years of retirement service credit may leave their contributions on d eposit and elect to take a deferred retirement. Difference between expected or actual experience fo r vested and non-vested benefits may result in an increase or decrease to pension expense and net pension liability.

For members with Tier 1, Tier 4, or Tier 5 benefits, final average salary is the average monthly salary based on the highest twelve consecutive months of earnings. For members with Tier 2, Tier 3, or Tier 6 benefits, final average salary is the average monthly salary ba sed on the highest thirty-six consecutive months of earnings.

The retirement benefit for Tier 1, Tier 2, Tier 4, Tier 5, and Tier 6 members includes a postretirement cost-of-living adjustment (COLA) based upon the Consumer Price Index. COL increases/decreases are limited to a maximum of 3% annually. Total COL decrease(s) cannot exceed the cumulative amount of previous COLA increase(s). Tier 1, Tier 2, Tier 4, Tier 5, and Tier 6 provide death and disability benefits.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

79 12. PENSION PLAN, Continued

Those members participating in T ier 1, Tier 2, Tier 4, Tier 5, and Tier 6 are required by statute to contribute to the pension plan. Members’ contribution rates for Tier 1, Tier 2, Tier 4, and Tier 5 are formulated on the basis of the age at date of entry and the actuarially calculated future benefits. Members’ contribution rate for Tier 6 is a flat rate based on the actuar ially calculated future benefit. The City is required by statute to contribute the remaining amounts necessa ry to finance the estimated benefits accrued to its members. Member and employer contribution rates for each plan are as follows:

Plan
Employer
Contribution Rates
Employee
Contribution Rates
General Tier 2 29.51% 4.6-11.59%
General Tier 4 20.36% 3.25-7.91%
General Tier 5 34.93% 5.44-16.67%
General Tier 6 29.81% 9.10%
Safety Tier 5 49.41% 8.84-17.41%
Safety Tier 6 43.76% 14.72%

Contributions

The City’s contributions to StanCERA for the fiscal year ended June 30, 2022, was equal to the required contributions. The required contributions for the last three fiscal years are noted in the below chart. The City does not contribute towards post-employment benefits other than retirement.

Fiscal Year End Contributions
June 30, 2021 5,676,413$
June 30, 2022 5,112,173

The County Employees’ Retirement Law of 1937 establishes the ba sic obligations for employer and member contributions and benefits to and of the retirement system. The actual employer and member contribution rates in effect each year are based on recommendat ions made by an independent actuary and adopted by the StanCERA Board of Retirement.

StanCERA provides a death benefit of $5,000 paid to the benefic iary or estate if a member dies after retirement, provided that Stanislaus County was the members’ last public employer.

Ad-hoc benefits are non-vested benefits determined by the Board of Retirement. Approved changes to the excess earnings policy by th e Board of Retirement on June 3 0, 2014 placed restrictions on offering ad-hoc benefits, specifically that the system must be 100% actu arially funded prior to the Board of Retirement offering any ad-hoc benefits. StanCERA is 78.8% actuarially funded as of June 30, 2022.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

80 12. PENSION PLAN, Continued

B. Net Pension Liability

The City’s net pension liability for the Plan is measured as th e total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions Used to Calculate Net Pension Liability

The total pension liability in the June 30, 2022 actuarial valuations was determined using the following actuarial assumptions:

Actuarial Assumptions
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method Entry-age normal cost method
Actuarial assumptions:

Discount rate 6.75%
Inflation 2.50%
Payroll growth 2.75% for those eligible for COLA
Projected salary increases 2.75% plus merit component
Investment Rate of Return 6.75%

Post-retirement mortality rates were based on the RP2000 Combin ed tables projected to the year 2020 with adjustments for mortality i mprovements based on Society of Actuaries Scale AA. For pre- retirement mortality, withdrawal rates, disability rates and service retirement rates, the rates vary by age, gender and classification.

Discount Rate - The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from the employers will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make al l projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

81 12. PENSION PLAN, Continued

B. Net Pension Liability, Continued

The long-term defined benefit pension plan return expectations were determined using a building-block approach. An inflation forecast is the baseline and various rea l return premiums (e.g. bonds, equities, etc.) are added to create nominal return expectations for each asset class.

These expectations are combined to produce the long-term expect ed rate of return by weighting the expected nominal rates of return by the target asset allocation percentages and including an expected return from rebalancing uncorrelated asset classes.

Best estimates of geometric real rates of return for each major asset class included in the target asset allocation as of June 30, 2022 are summarized in the following table:

Asset Class
2021 Target
Allocation
Long-Term Expected
Real Rate of Return
Domestic Equities
US Large Cap 16.00% 6.20%
US Small Cap 3.50% 6.30%
International Equities
International Development 18.00% 4.83%
Emerging Market Equity 5.00% 2.07%
US Fixed Income
Core fixed income 7.00% 3.20%
US Treasury 5.00% 2.60%
Short-term Gov/Credit 8.00% 2.90%
Real Estate Securities
Core 6.00% 5.60%
Value-add 5.00% 7.77%
Risk Parity 13.00% 5.10%
Private Equity 6.00% 9.90%
Private Credit 4.50% 7.80%
Infrastructure 2.00% 7.10%
Cash 1.00% 2.30%

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

As of June 30, 2022, the City reported net pension liabilities for its proportionate share of the net pension liability of the Plan of $22,416,620.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

82 12. PENSION PLAN, Continued

B. Net Pension Liability, Continued

The City's net pension liability for the Plan is measured as th e proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City's proportion of the net pension liability was based on a projecti on of the City's long-term share of contributions to the pension plan relative to the projected con tributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2021 was 5.2415% and 5.7019% respectively.

For the year ended June 30, 2022, the City recognized pension expense of $1,526,793. At June 30, 2022, the City reported deferred outfl ows of resources and deferred i nflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflow
of Resources of Resources
Pension contributions subsequent to measurement date 5,112,173 $ - $ Differences between actual and expected experience 1,620,879 127,599 Differences between the employer's contributions and the employer's proportionate share of the contributions 1,678,784 2,947,408 Net differences between projected and actual earnings on plan investments - 11,615,353
Changes in assumptions 338,923 965,441 Total 8,750,759$ 15,655,801$

$5,112,173 reported as deferred outflows of resources related t o contributions subsequent to the measurement date and changes in proportion that will be recogni zed as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
30-Jun
2022 (2,602,569)$
2023 (2,036,477)
2024 (2,746,990)
2025 (4,631,178)
2026 -
Thereafter -

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

83 12. PENSION PLAN, Continued

B. Net Pension Liability, Continued

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the City ca lculated using the discount rate of 6.75%, as well as what the plan’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate:

1% Decrease in
Discount Rate
Current Discount
Rate
1% increase in
Discount Rate
(5.75%) (6.75%) (7.75%)
Net pension liability 45,465,255 $ 22,416,620 $ 3,610,559 $

Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued Association financial reports.

13. ABANDONED VEHICLE ABATEMENT PROGRAM

The City has an Abandoned Vehicle Abatement Program (AVA) with revenues, expenditures, and balances of abandoned vehicle abatement funds for the year ended June 30, 2022 as follows:

Revenues 31,772$
Expenditures:

Public safety 49,316
Revenues (under) expenditures (17,544)
Fund balances:

Beginning balance 82,914
Ending balance 65,370$

AVA expenditures for 2022 are in compliance with Sections 9250.7 and 22710 of the Vehicle Code.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

84 14. SUCCESSOR AGENCY TRUST FOR ASS ETS OF FORMER REDEVELOPMENT AGENCY

On December 29, 2013, the California Supreme Court upheld Assem bly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in t he State of California. This action impacted the reporting entity of the City of Ceres that previou sly had reported two redevelopment agencies within the reporting entity of the City as blended component units.

The Bill provides that upon dissolution of a redevelopment agen cy, 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 9, 2013, the City Council elected to become the Successor Agency for both the former Ceres Redeve lopment Agency and Stanislaus- Ceres Redevelopment Commission in accordance with the Bill as part of City resolution number 2013- 04 and 2013-05, respectively.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completi on of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011.

If the public body that received such transfers is not contract ually committed to a third party for the expenditure or encumbrance of t hose assets, the State Controlle r is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consu ltation with legal counsel, that t he obligations of the former redevelopment agency due to the City are valid enforceable obli gations payable by the successor agency trust under the requirements of the Bill. The City’s pos ition on this issue is not a position of settled law and there is considerable legal uncertainty regardi ng this issue. It is reasonably possible that a legal determination may be made at a later date by an ap propriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modif ied by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2013. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported i n the governmental funds of the City included in the fund financial statements as Former Ceres Redev elopment Agency Special Revenue Fund and Low/Moderate Income Housing Fund, Capital Projects Fund and Debt Service Fund.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

85 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued

The City also reported the Former Stanislaus-Ceres Redevelopmen t Commission Special Revenue Fund and Low/Moderate Income Housing Fund, Capital Projects Fund and Debt Service Fund.

After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2013 (effectively the same date as January 31, 2013) from gov ernmental funds of the City t o fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and li abilities as of January 31, 2013 was reported in the private-purpose trust fund as an extraordinary gain (or loss).

Because of the different measurement focus of the governmental funds ( current financial resources measurement focus) and the measurement focus of the trust funds ( economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements.

Loans and notes receivable

Loans and notes receivable for the year ended June 30, 2022 for the Successor Agency, consisted of the following:

Beginning Ending
Description July 1, 2021 Additions (Deletions) June 30, 2022 First-Time Homebuyer Loans 6,600$ -$ -$ 6,600$ Housing Rehabilitation Loans:

Home Exterior Grant Program 16,624 - - 16,624 2004 Walnut 96,772 - - 96,772 Low Income Deferred Loans 24,250 - - 24,250 River Crest 600,000 - - 600,000 Habitat for Humanity Loans 56,353 - - 56,353 Broad Acres 168,272 - - 168,272 Total Housing Rehabilitation Loans 962,271 - - 962,271 Whitmore Oaks 612,500 - - 612,500 Della Tiara 633,000 - - 633,000 Total loans receivable 2,214,371$ -$ -$ 2,214,371$

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

86 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued

The following is a summary of the loans and notes receivable outstanding as of June 30, 2022:

First-Time Homebuyer Loans

Housing Rehabilitation Loans

The City administers various housing rehabilitation loan progra ms that used the former CRA 20% Set Aside funds. Under these programs, individuals with incomes below a certain level are eligible to receive low interest, variable term loans, secured by deeds of trust for rehabilitation work on their homes. Interest rates may vary from 0% to 3%. The loan repayments may be amortized over the life of the loans, deferred or a combination of both. Total rehabilitation loans outstanding at June 30, 2022 were $962,271.

Whitmore Oaks

The Whitmore Oaks loan was made to assist the developer with the costs to develop and construct a 53 unit apartment complex for seniors. The former CRA provided a loan of $612,500 and the City, through the State’s HOME Investment Partnership Program, provided a loan of up to $865,361. Loan provisions require the apartment complex pro vide not less than eleven affo rdable housing units to be rented to qualified very-low and low income persons and families. The CRA loan carries an interest rate of 3% starting 2015 and the note is payable in full in 2057. The HOME loan carries an interest rate of 3% starting in 2027 and the note is payable in full in 2042. The a mount outstanding at June 30, 2022 was $612,500.

ACLC

The CRA provided a loan to Asociacion Campesina “Lazaro Cardena s” (ACLC) to assist in the acquisition and rehabilitation of a 46 unit affordable apartment complex in the City. This project will preserve the 46 units of affordable housing stock in the City. This project was funded through the former CRA Low/Mod housing funds. The interest rate on the loan is 3% simple interest and the loan is deferred for 55 years. The amount outstanding at June 30, 2022 was $0.

Della Tiara

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

87 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued

Long-term Liabilities

The following is a summary of changes in long-term debt for fiduciary activities for the year ended June 30, 2022:

Balance Transfers/ Balance Due Within
July 1, 2021 Additions Retirements June 30, 2022 One Year Fiduciary Activities:
2000 SCRC Tax Allocation Bonds 795,000$ - $ (60,000)$ 735,000 $ 60,000 $ 2015 Successor CRA Tax Allocation
Refunding Bonds 6,695,000 - (325,000) 6,370,000 335,000 Bond premium 184,043 (12,270) 171,773 12,270 2020 CRA Non-Housing Refunding
Tax Allocation Bonds 19,450,000 - (1,015,000) 18,435,000 1,040,000 Bond premium 3,752,181 - (250,145) 3,502,036 250,145 Total fiduciary activities 30,876,224$ -$ (1,662,415)$ 29,213,809$ 1,697,415$

2000 SCRC Tax Allocation Bonds – Original Issue $1,440,000

On May 16, 2000, the SCRC issued tax allocation bonds for the p urpose of financing a portion of the costs of the Stanislaus/Ceres Re development Project. The bonds are payable from and secured by the tax revenues to be derived from the project area. The bonds mat ure annually through 2030, in amounts ranging from $20,000 to $105,000.

Interest rates vary from 4.65% to a maximum of 6.70% and are pa yable semiannually on May 1 and November 1. The bonds maturing before November 1, 2010, are not subject to optional redemption prior to their stated maturities. Bonds maturing on or after November 1, 2010, are subject to redemption in whole or in part on any interest payment date. Redemption inclu des a premium of 2% commencing on November 1, 2010, and reduced by 1% on each November 1 thereafter.

2015 Successor Agency to the Ceres Redevelopment Agency Tax Allocation Refunding Bonds

On June 17, 2015, the Successor Agency to the CRA issued the CR A Project Area No. 1 Non-Housing bonds. The proceeds will be used to refund and defease the 2003 CRA Tax Allocation Bonds. The Non- Housing Bonds are payable from and secured by Tax Revenues allo cated to the CRA from the Project Area. Interest on the bonds will be payable on May 1 and November 1 of each year. Non-Housing Bonds maturing on or before November 1, 2020, will not be subject to redemption prior to their stated maturity.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

88 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued

2020 CRA Non-Housing Tax Allocation Refunding Bonds – Original Issue $20,615,000

On February 25, 2020, the City issued $20,615,000 principal amo unt of 2021 CRA Non-Housing Tax Allocation Refunding Bonds to refund the outstanding principal balance of $26,105,000 for the 2006 CRA Non-Housing Tax Allocation Bonds and $850,000 for the 2006 CRA Housing Tax Allocation Bonds. The reacquisition price did not exceed the net carrying amount of the old debt. This refunding decreased its total debts se rvice payments by $9,430,620 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $7,346,661.

Arbitrage

The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax- exempt bonds after August 31, 1986 . Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yi eld to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years . The City performed calculations of excess investment earnings on various bonds and financings and at June 30, 2022, there were no arbitrage liabilities.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

89 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued

Future debt service at June 30, 2022, is as follows for fiduciary debt:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2023 60,000 $ 47,115 $ 335,000 $ 278,275 $ 1,040,000 $ 737,400 $ 2024 65,000 42,959 350,000 293,000 1,080,000 695,800 2025 70,000 38,470 370,000 275,000 1,125,000 652,600 2026 75,000 33,649 390,000 256,000 1,175,000 607,600 2027 80,000 28,475 405,000 236,125 1,220,000 560,600 2028-2032 385,000 53,768 2,670,000 628,094 6,315,000 2,034,400 2033-2037 - - 1,850,000 69,938 6,480,000 738,200 2038-2042 - - - - - - Total 735,000 $ 244,436$ 6, 370,000$ 2, 036,432$ 18,435,000 $ 6,026,600 $ Due within one year 60,000$ 47,115 $ 335,000 $ 278,275 $ 1,040,000 $ 737,400 $ Due after one year 675,000 197,321 6,035,000 1, 758,157 17,395,000 5,289,200 Total 735,000 $ 244,436$ 6, 370,000$ 2, 036,432$ 18,435,000 $ 6,026,600 $ Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2023 12,270 $ - $ 250,145$ - $ 1,697,415$ 1,062,790$ 2024 12,270 - 250,145 - 1,757,415 1,031,759 2025 12,270 - 250,145 - 1,827,415 966,070 2026 12,270 - 250,145 - 1,902,415 897,249 2027 12,270 - 250,145 - 1,967,415 825,200 2028-2032 61,350 - 1,250,727 - 10,682,077 2,716,262 2033-2037 49,073 - 1,000,584 - 9,379,657 808,138 2038-2042 - - - - - - Total 171,773$ -$ 3,502,036$ -$ 29,213,809$ 8,307,468$ Due within one year 12,270$ -$ 250,145$ -$ 1,697,415$ 1,062,790$ Due after one year 159,503 - 3,251,891 - 27,516,394 8,307,468 Total 171,773$ -$ 3,502,036$ -$ 29,213,809$ 9,370,258$ Refunding Bonds
Premium
2015 CRA Tax Allocation
Bonds
Refunding Tax Allocation
Totals
2020 CRA Non-Housing
Refunding Tax Allocation
Bonds
2000 SCRC Tax Allocation
Bonds
2015 CRA Tax Allocation
Refunding Bonds
Premium2020 CRA Non-Housing

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

90 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued

Activity for advances for the year ended June 30, 2022, was as follows:

Advances to Advances from
Other Funds Other Funds
Governmental Activities
Major Funds:

General Fund 1,954,281 $ - $
Total Major Funds 1,954,281 -
Total Governmental Activities 1,954,281 - Fiduciary Activities:

Private Purpose Trust Funds:

Former Ceres Redevelopment Agency
Non-Housing - 1,422,787
Former Stanislaus - Ceres Redevelopment
Commission Successor Agency Non-Housing - 531,494 Total Private Purpose Trust Funds - 1,954,281 Total Fiduciary Activities - 1,954,281 Totals 1,954,281 $ 1,954,281 $

Advances from the General Fund to the Former Redevelopment Agency Fund were for Redevelopment start-up costs.

15. COMMITMENTS AND CONTINGENCIES

The City is a party to claims and lawsuits arising in the ordin ary course of business. The City’s management and legal council are of the opinion that the ultima te liability, if any, arising from these claims will not have material adverse impact on the financial position of the City. The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although th e City expects such amounts, if any, to be immaterial.

16. NEW ACCOUNTING PRONOUNCEMENTS

The GASB has issued Statement No. 91, " Conduit Debt Obligations ." The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt oblig ations, and (3) related note disclosures.

This Statement achieves those objectives by clarifying the exis ting definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obliga tions; and improving required note disclosures. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2023.

ITEM 1
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2022

91 16. NEW ACCOUNTING PRONOUNCEMENTS, Continued

The GASB has issued statement No. 94, “ Public-Private and Public -Public Partnerships and Availability Payment Arrangements”. The objective of this Statement is to better meet the informati on needs of financial statement users by improving the comparabili ty of financial statements among governments that enter into PPPs and APAs and by enhancing the understandability, reliability, relevance, and consistency of information about PPPs and APAs. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2023.

The GASB has issued statement No. 96, “Subscription-Based Information Technology Arrangements”.

The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and co nsistency of informa tion about SBITAs.

The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2023.

The GASB has issued statement No. 97 , “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans”. The primary objectives of this Statement are to (a) increase consis tency and comparability related to the reporting of fiduciary component u nits in circumstances in whic h a potential com ponent unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (b) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (c) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.

ITEM 1

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ITEM 1

REQUIRED SUPPLEMENTARY INFORMATION
93 ITEM 1
City of Ceres, California
Required Supplementary Information - Schedule of Contributions Last 10 Fiscal Years*
2022 2021 2020 2019 2018 2017 2016
Contractually required contribution (actuarially
determined) 5,217,995$ 5,281,755 $ 5,036,102 $ 4,265,800 $ 3,831,916 $ 3,554,625 $ 3,393,450 $ Contributions in relation to the actuarially determined contributions 5,217,995 5,281,755 5,036,102 4,265,800 3,831,916 3,554,625 3,393,450 Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered-employee payrol
l 13,305,865$ 14,028,282 $ 12,808,104 $ 11,548,404 $ 12,342,022 $ 13,228,342 $ 13,055,073 $ Contribution as a percentage of covered-employee
payroll 39.22% 37.65% 39.32% 36.94% 31.05% 26.87% 25.99% Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. *Additional years will be presented as they become available. 94 ITEM 1
City of Ceres, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Last 10 Fiscal Years*
2022 2021 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 5.2415% 5.7019% 5.5842% 5.1682% 5.5554% 5.8514% 5.6629% Plan's Proportionate Share of the Net Pension
Liability/(Asset) 22,416,620$ 46,489,029 $ 36,868,449 $ 33,371,414 $ 36,959,387 $ 43,142,269 $ 16,714,375 $ Plan's Covered-Employee Payroll 13,305,865$ 14,028,282$ 12,808,104$ 11,548,404$ 12,342,022$ 13,228,342$ 13,055,073$ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered-
Em
ployee Payroll 168.50% 331.40% 287.90% 288.97% 299.46% 326.14% 128.03% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liabilit
y 86.50% 73.00% 77.00% 76.70% 75.00% 70.60% 86.10%
Plan's Proportionate Share of Aggregate Employer
Contributio
n 5,217,995$ 5,281,755 $ 5,036,102 $ 4,265,800 $ 3,831,916 $ 3,554,625 $ 3,393,450 $ Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. *Additional years will be presented as they become available. 95 ITEM 1
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96 ITEM 1

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
97 ITEM 1
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98 ITEM 1
Fund
Street Tree
Storm Drain Benefit Districts
Brown Annex - Public Safety Mitigation
Eastgate Street & Landscape Benefit District
AB939 Source Reduction/Recycle
Neighborhood Park Fees
BEGIN Grant
Program Income
Measure H
State Gas Tax
Prop 1B
SLESF Grant
Abandoned Vehicle Abatement
Seized Property
Downtown Revitalization
Street-Light and Landscape District
Traffic Offender
State Traffic Safety
(continued)
Fund established for the Program Income from the State Housing & Community Development Building Equity & Growth in Neighborhoods grant.

NON-MAJOR GOVERNMENTAL FUNDS
Description
To account for public safety mitigation fees collected for the Brown Annexation area; to provide funding for police salaries.

To account for street and landscape improvements made in the Eastgate subdivisions, funded by fees collected on property developed within the benefited area .

This fund is to account for funds received to be used to inform citizens of recycling requirements.

Fees collected from each new dwelling constructed, to be used for planning, acquisition, improvement, and expansion of neighborhood parks.

Fees collected from developers to be used by the City for planting trees along City streets and roads in new subdivisions.

These benefit district funds are used to account for developer fees used for the construction of the storm drain systems in the specific districts of WestPointe, Eastgate, Mitchell Road, and North East.

Fund established for State Housing & Community Development Building Equity & Growth in Neighborhoods grant to be utilized for deferred-payment second mortgage loans for down payment assistance to lower to moderate-income first-time homebuyers of new homes in projects with affordability enhanced by local regulatory incentives or barrier reductions.

Voter approved ½-cent retail transaction and use tax (sales tax) for the improvement of police, fire and 9-1-1 emergency response; to fund additional personnel and equipment costs.

State allocation of 2006 Transportation Bond, Local Streets and Roads funding to be utilized for transportation improvements, including maintenance, rehabilitation and construction or as local match for state and federal transportation funds for similar purposes.

Accounts for revenues and expenditures associated with State funds provided as a match for the COPS Universal Hiring Grant.

To account for activities of the Police Traffic Unit, including towing/impound fees and State grants utilized for Unit expenditures.

This fund contains revenues obtained from the sale of forfeited property in drug related cases. Funds are used for law enforcement equipment.

Revenues for this fund come from assessments to downtown businesses. These funds are used to improve the downtown area with such programs as façade and streetscape im
provements and promotional events.

This fund is used to account for financial activity relating to the City-wide 1972 Act Landscaping and Lighting District. Revenues include assessment to the property owners within the district and expenditures related to the maintenance and upkeep of the street li
ghts, median landscaping, and landscaping adjacent to sound walls.

This fund contains revenues obtained from the sale of forfeited vehicle. Funds are used for law enforcement supplies and equipment.

The City's share of the State gas tax allocations are recorded in this fund. These funds can be used for any street purpose. The City charges the street department to the gas tax This fund is used to account for fines as a result of arrests by City officers. These funds can only be used for traffic control devices and maintenance of equipment and supplies for traffic enforcement.
99 ITEM 1
Fund
Used Oil Recycling Grant
American Recovery & Reinvestment Act
Department of Conservation
CMAQ
Community Facilities District
Fire Hydrant Benefit District
Transportation Development Act
Community Center
Local Law Enforcement Block Grant
Public Facilities Fees
Daniel Whitmore House
River Bluff Regional Park
Ceres Community Foundation Accounts for activities related to the Ceres Community Foundation.

Clinton Whitmore Mansion
Measure L
Road Maintenance & Rehab
SB2 Planning Grants Program Fund
SB 1383
CARES Ac
t
(concluded)
Fund Description: In September 2016 the State set methane emission reduction targets for California in Senate Bill 1383. The California Department of Resources, Recycling and Recovery (CalRecycle) worked to develop regulations to achieve the goals of SB1383. These new regulations were finalized CalRecycle and took effect in January 2022. The SB 1383 fund is a special revenue fund. This fund will track grant funds from CalRec
ycle and expenditures associated with complying with the new regulations.

Senate Bill 1, the Road and Repair and Accountability Act of 2017. Funds are used to continue essential road maitenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options to the traveling public.

Local Roads First Transportation Funding Measure which establishes and implements a one-half cent transaction and use tax. Funding is to be used for local street and road improvements, arterial street widening, signalization, pedestrian, bicyclist, and drive safet
y improvements. The tax will expire on March 31, 2042.

This fund is to account for grant funds received to be used to inform citizens of oil recycling opportunities and procedures.

This fund is used to account for activities for the projects funded by the American Recovery and Reinvestment Act .

The City owns the Daniel Whitmore Home. It is the oldest house in the City and is now a museum. These funds are used for museum expenses and improvements.

This fund is used to account for Federal funds used for transit and street-related NON-MAJOR GOVERNMENTAL FUNDS, Continued
Description
SB2 Planning Grants Program Funds through the State Department of Housing and Community Development (HCD) is designed to provide technical planning assistance monies related to the preparation, adoption, and implementation of plans that streamline housing approvals and lead to the acceleration of housing production.

The Corona Virus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law on March 27, 2020. It established a $150 billion Coronavirus Relief Fund to provide State, Local, and Tribal governments impacted by the virus outbreak. The U.S. Department of Treasury has made payments from the Fund to States and eligible units of local governments. The payment made to the city are used to cover expense that are necessary expenditures incurred due to the virus and incurred from March 1, 2020 to December 30, 2020.

The City owns the Clinton Whitmore Mansion. These funds are used for operating expenses and improvements.

To account for construction of Ceres River Bluff Regional Park and associated State grant revenues utilized for project.

State Department of Conservation grant utilized for promotion of recycling, reuse, and other green initiatives within the City.

To account for the special property taxes levied for the provision of public services (Police, Fire, and Parks).

These funds are collected from developers in the district for the installation of additional fire hydrants because the existing hydrant spacing does not meet City standards.

This fund is used to account for local transportation funds restricted to transit, street, pedestrian, and bike purposes.

To account for operational revenues and expenses of Ceres Community Center.

The City's receipt and expenditures of the federal grants are recorded in these funds.

Expenditures are made to assist in projects that reduce crime and improve public safety.

These fees are received from developers to increase space and improve to City buildings, specifically, Public Safety, Planning, Public Works, and City Hall to mitigate the
growth of the City.
100
ITEM 1
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101
ITEM 1
City of Ceres, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Storm Eastgate
Drain Street
Street Benefit Brown Benefit
Tree Districts Annex District AB 939
ASSETS
Cash and investments 101,340$ 847,781 $ 7,073 $ 69,748 $ 228,342 $ Receivables:

Taxes - - - - - Interest 10 81 - 7 25 Intergovernmental - - - - - Loans receivable - - - - - Other receivable - - - - - Due from other funds - - - - - Total assets 101,350$ 847,862$ 7,073$ 69,755$ 228,367$

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities -$ 445$ -$ -$ -$ Due to other funds - - - - - Total liabilities - 445 - - - Deferred inflows: Grants - - - - - Total liabilities and deferred inflows - 445 - - - Fund Balances:

Restricted - 847,417 - 69,755 - Committe
d - - - - - Assigned, reported in:

Special revenue funds 101,350 - 7,073 - 228,367 Unassigned (deficit) - - - - - Total fund balances 101,350 847,417 7,073 69,755 228,367 Total liabilities and fund balances 101,350$ 847,862 $ 7,073 $ 69,755 $ 228,367 $ 102
ITEM 1
Program
Neighborhood BEGIN Income Measure H State
Park Fees Grant BEGIN Income Gas Tax SLESF
1,050,036$ 468,351 $ 229,084 $ 1,789,702 $ - $ 48,329$ - - - - - - 100 45 22 230 - - - - - - - - - 344,050 - - - - - - - 845,499 91,469 - - - - - - - 1,050,136$ 812,446$ 229,106$ 2,635,431$ 91,469$ 48,329$ 1,540$ -$ -$ 27,607$ 14,700$ -$ - - - - 382,822 - 1,540 - - 27,607 397,522 - - 344,050 - - - - 1,540 344,050 - 27,607 397,522 - - 468,396 229,106 2,607,824 48,329 - - - - - - 1,048,596 - - - - - - - - - (306,053) - 1,048,596 468,396 229,106 2,607,824 (306,053) 48,329 1,050,136$ 812,446$ 229,106$ 2,635,431$ 91,469$ 48,329$ (continued)
103
ITEM 1
City of Ceres, California
Combining Balance Sheet
Nonmajor Special Revenue Funds, Continued
June 30, 2022
Abandoned Street Light-
Vehicle Seized Downtow n Landscape Traffic
Abatement Property Revitalizatio n District Offender
ASSETS
Cash and investments 65,363$ 54,122 $ 73,485 $ - $ - $ Receivables:

Taxes - - - - - Interest 7 5 7 - - Intergovernmental - - - - - Loans receivable - - - - - Other receivable - - - - 62,000 Due from other funds - - - - - Total assets 65,370$ 54,127$ 73,492$ -$ 62,000$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities -$ 29,347$ 973$ 19,547$ 89$ Due to other funds - - - 272,831 16,215 Total liabilities - 29,347 973 292,378 16,304 Deferred inflows: Grants - - - - - Total liabilities and deferred inflows - 29,347 973 292,378 16,304 Fund Balances:

Restricted - - - - - Committe
d - - - - - Assigned, reported in:

Special revenue funds 65,370 24,780 72,519 - 45,696 Unassigned (deficit) - - - (292,378) - Total fund balances 65,370 24,780 72,519 (292,378) 45,696 Total liabilities and fund balances 65,370$ 54,127 $ 73,492 $ - $ 62,000$ 104
ITEM 1
Dept of Community Fire Hydrant
Traffic Used Oil Conservatio n Facilities Benefi t
Safety Grants Grant CMAQ Distric t District
-$ 26,284$ 68,861$ -$ 12,635$ 129,139$ - - - - - - - 3 7 - 56 - - - - - - - - - - - - - 2,313 - - - - - - - - - - 2,313$ 26,287$ 68,868$ -$ 12,691$ 129,139$ -$ -$ -$ 195,503$ -$ -$ 2,313 - - 389,039 - - 2,313 - - 584,542 - - - - - - - - 2,313 - - 584,542 - - - - 68,868 - - 129,139 - - - - 12,691 - -
26,287 - - - - - - - (584,542) - - - 26,287 68,868 (584,542) 12,691 129,139 2,313$ 26,287$ 68,868$ -$ 12,691$ 129,139$ (continued)
105
ITEM 1
City of Ceres, California
Combining Balance Sheet
Nonmajor Governmental Funds, Continued
June 30, 2022
Transportation Public Danie l RiverBluff
Development Community Facilities Whitmore Regional
Act Center LLEBG Fee s House Par k
ASSETS
Cash and investments 48,064$ - $ 29,871$ 2,495,720$ - $ 25,082$ Receivables:

Taxes - - - - - - Interest - - 3 231 - - Intergovernmental - - - - - - Loans receivable - - - - - - Other receivable - - - - - - Due from other funds - - - - - - Total assets 48,064$ -$ 29,874$ 2,495,951$ -$ 25,082$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 101$ 14,878$ - $ 3,000 $ 117 $ - $ Deposits payable - 115,983 - - - - Due to other funds 22,545 1,890,625 - - 3 - Advances from other funds - - - - - - Total liabilities 22,646 2,021,486 - 3,000 120 - Deferred inflows: Grants - - - - - - Total liabilities and deferred inflows 22,646 2,021,486 - 3,000 120 - Fund Balances:

Restricted 25,418 - - - - - Committed - - - - - - Assigned, reported in:

Special revenue funds - - 29,874 2,492,951 - 25,082 Unassigned (deficit) - (2,021,486) - - (120) - Total fund balances 25,418 (2,021,486) 29,874 2,492,951 (120) 25,082 Total liabilities and fund balances 48,064$ -$ 29,874$ 2,495,951$ -$ 25,082$ 106
ITEM 1
Ceres Clinton Road SB2 Planning SB 1383 Local
Community Whitmore Maintenance Grants Program Assistance Foundation Mansio n Measure L and Rehab Fund Gran t CARESA Act 141,122$ -$ 3,392,266$ 1,698,637 -$ 69,946 4,868,038 $ 18,038,421$ - - - - - - - - 14 - 342 155 - - - 1,350 - - 1,144,982 - - - - 1,144,982 - - - - - - - 344,050 - - - 88,606 - - - 1,089,887 - - - - - - - - 141,136$ -$ 4,537,590$ 1,787,398$ -$ 69,946$ 4,868,038$ 20,618,690$ 959$ 62$ 62,466$ 101$ -$ -$ 27,311$ 398,746$ - - - - - - - 115,983 - 116,342 - - 2,363 - - 3,095,098 - - - - - - - - 959 116,404 62,466 101 2,363 - 27,311 3,609,827 - - - - - - - 344,050 959 116,404 62,466 101 2,363 - 27,311 3,953,877 140,177 - 4,475,124 1,787,297 - - - 10,896,850 - - - - - 69,946 - 82,637 - - - - - - 4,840,727 9,008,672 - (116,404) - - (2,363) - - (3,323,346) 140,177 (116,404) 4,475,124 1,787,297 (2,363) 69,946 4,840,727 16,664,813 141,136$ -$ 4,537,590$ 1,787,398$ -$ 69,946$ 4,868,038$ 20,618,690$ (concluded)
Totals
107
ITEM 1
City of Ceres, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Storm Eastgate
Drain Street
Street Benefit Brown Benefit
Tree Districts Annex District
REVENUES:

Property and other taxes -$ 43,619$ -$ -$ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Charges for services - - - - Intergovernmental - - - - Use of money and property 337 2,451 20 205 Other revenues - - - - Total revenues 337 46,070 20 205 EXPENDITURES:

Current:

General government - - - - Public safety - - - - Engineering and Transportation - 15,872 - - Public works - - - - Community services - - - - Economic development - - - - Capital outlay - - - - Debt service:

Principal - - - - Interest and fiscal charges - - - - Total expenditures - 15,872 - -

REVENUES OVER (UNDER)
EXPENDITURES 337 30,198 20 205 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing
sources and uses - - - -

REVENUES AND OTHER FINANCIN
G

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) 337 30,198 20 205 FUND BALANCES (DEFICIT):

Beginning of year 101,013 817,219 7,053 69,550 End of year 101,350$ 847,417 $ 7,073 $ 69,755 $ 108
ITEM 1
Program
Neighborhood BEGIN Income State
AB 939 Park Fees Grant BEGIN Measure H Gas Tax SLESF
-$ - $ - $ - $ 4,891,723$ - $ - $ - - - - - - - - - - - - - - - 137,074 - - - - - - - 79,213 - - 1,150,986 176,583 761 2,898 1,339 669 5,747 68 - - - - - 328 2,920 - 761 139,972 80,552 669 4,897,798 1,153,974 176,583 - - - - - - - - - - - 3,872,736 - 155,944 53,633 - - - - 1,901 - - 5,834 - - - 1,234,080 - - - - - - - - - - - - - - - - 1,597 - - - - - - - - - - 109,625 - - - - - - 9,354 - 53,633 7,431 - - 3,872,736 1,354,960 155,944 (52,872) 132,541 80,552 669 1,025,062 (200,986) 20,639 - - - - - - - - - - (152,000) - - - - - - (152,000) - - (52,872) 132,541 80,552 669 873,062 (200,986) 20,639 281,239 916,055 387,844 228,437 1,734,762 (105,067) 27,690 228,367$ 1,048,596$ 468,396$ 229,106$ 2,607,824$ (306,053)$ 48,329$ (continued)
109
ITEM 1
City of Ceres, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued Nonmajor Special Revenue Funds
For the year ended June 30, 2022
Abandoned Street Light-
Vehicle Seized Downtown Landscape Traffic
Abatement Property Revitalization District Offender
REVENUES:

Property and other taxes - $ -$ -$ 437,398$ -$ Licenses and permits - - - - - Fines, forfeitures and penalties - - - - - Charges for services - - 8,766 - 64,113 Intergovernmental 31,536 8,952 - - 62,000 Use of money and property 236 155 229 - - Other revenues - - - - - Total revenues 31,772 9,107 8,995 437,398 126,113 EXPENDITURES:

Current:

General government - - - - - Public safety 49,316 - - - 125,997 Engineering and Transportation - - - - - Public works - - - 203,483 - Community services - - - 338,755 - Economic development - - 16,145 - - Capital outlay - - - - - Debt service:

Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 49,316 - 16,145 542,238 125,997

REVENUES OVER (UNDER)
EXPENDITURES (17,544) 9,107 (7,150) (104,840) 116 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing
sources and uses - - - - -

REVENUES AND OTHER FINANCIN
G

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) (17,544) 9,107 (7,150) (104,840) 116 FUND BALANCES (DEFICIT):

Beginning of year 82,914 15,673 79,669 (187,538) 45,580 End of year 65,370 $ 24,780$ 72,519$ (292,378)$ 45,696$ 110
ITEM 1
Dept of Community Fire Hydrant
Traffic Used Oil Conservation Facilities Benefit
Safety Grants Grant CMAQ District District
-$ -$ -$ -$ 676,429$ 442$ - - - - - - 47,770 - - - - - - - - - - - - 12,426 12,411 1,040,086 - - - 54 161 - 609 - - - - - - - 47,770 12,480 12,572 1,040,086 677,038 442 - - - - - - 47,770 - - - - - - - 12,126 30,844 - - - 13,461 - - 7,590 - - - - - - - - - - - - - - - - 1,343,603 - - - - - - - - - - - - - - 47,770 13,461 12,126 1,374,447 7,590 - - (981) 446 (334,361) 669,448 442 - - - - - - - - - - (668,839) - - - - - (668,839) - - (981) 446 (334,361) 609 442 - 27,268 68,422 (250,181) 12,082 128,697 -$ 26,287$ 68,868$ (584,542)$ 12,691$ 129,139$ (continued)
111
ITEM 1
City of Ceres, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds, Continued
For the year ended June 30, 2022
Transportation Public Daniel RiverBluff
Development Community Facilities Whitmore Regional
Act Center LLEBG Fees House Park
REVENUES:

Property and other taxes -$ -$ -$ -$ -$ - $ Fines, forfeitures and penalties - - - - - - Charges for services - 276,085 - 222,546 - 703 Intergovernmental - - - - - 48,925 Use of money and property - - 93 7,106 - - Other revenues - - - - - - Total revenues - 276,085 93 229,652 - 49,628 EXPENDITURES:

Current:

General government - - - - - - Public safety - - 13,876 44,045 - - Engineering and Transportation - - - - - - Public works 1,531 - - - - - Community services - 362,724 - - 7,810 - Economic development - - - - - - Capital outlay 101 - - 148,306 - - Debt service:

Principal - - - - - - Interest and fiscal charges - - - - - - Total expenditures 1,632 362,724 13,876 192,351 7,810 -

REVENUES OVER (UNDER)
EXPENDITURES (1,632) (86,639) (13,783) 37,301 (7,810) 49,628 OTHER FINANCING SOURCES (USES):

Transfers in - 0 - 7,811 - Transfers out - - - - - - Total other financing
sources and uses - - - - 7,811 -

REVENUES AND OTHER FINANCIN
G

SOURCES OVER (UNDER)

EXPENDITURES AND OTHE
R
FINANCING (USES) (1,632) (86,639) (13,783) 37,301 1 49,628 FUND BALANCES (DEFICIT):

Beginning of year 27,050 (1,934,847) 43,657 2,455,650 (121) (24,546) End of year 25,418$ (2,021,486)$ 29,874 $ 2,492,951$ (120) $ 25,082 $ 112
ITEM 1
Ceres Clinton Road SB2 Planning SB 1383 Local
Community Whitmore Maintenance Grants Program Assistance Foundation Mansion Measure L and Rehab Fund Grant CARES Act Totals - $ - $ -$ -$ - $ - $ -$ 6,049,611$ - - - - - - - 47,770 - - - - - - - 709,287 - - 3,261,762 979,672 - 69,946 5,825,755 12,760,253 415 - 9,512 3,587 - - - 36,652 - - - - - - - 3,248 415 - 3,271,274 983,259 - 69,946 5,825,755 19,606,821 2,989 - - - - - 734,998 737,987 - - - - - - 46,798 4,356,482 - - - - - - 173,418 287,794 - - 41,542 - 2,100 - - 1,509,621 - 42,163 - - - - 20,872 772,324 - - - - - - - 16,145 - - 1,934,660 22,141 - - 9,543 3,459,951 - - - - - - - 109,625 - - - - - - - 9,354 2,989 42,163 1,976,202 22,141 2,100 - 985,629 11,259,283 (2,574) (42,163) 1,295,072 961,118 (2,100) 69,946 4,840,126 8,347,538 - - - - - - - 7,811 - - - - - - - (820,839) - - - - - - - (813,028) (2,574) (42,163) 1,295,072 961,118 (2,100) 69,946 4,840,126 7,534,510 142,751 (74,241) 3,180,052 826,179 (263) - 601 9,130,303 140,177 $
(116,404)$ 4,475,124$ 1,787,297$ (2,363)$ 69,946 $ 4,840,727$ 16,664,813$ (concluded)
113
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street Tree Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Use of money and property 1,171$ 1,171$ 337$ (834)$ Total revenues 1,171 1,171 337 (834) EXPENDITURES:

Current:

Community services - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 1,171 1,171 337 (834) Net change in fund balances 1,171 1,171 337 (834) FUND BALANCES:

Beginning of year 101,013 101,013 101,013 - End of year 102,184$ 102,184 $ 101,350 $ (834) $ Budgeted Amounts
114
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Storm Drain Benefit Districts Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes 22,800$ 22,800$ 43,619$ 20,819$ Use of money and property 21,016 21,016 2,451 (18,565) Total revenues 43,816 43,816 46,070 2,254 EXPENDITURES:

Engineering and Transportation - 78,219 15,872 62,347 Total expenditures - 78,219 15,872 62,347

REVENUES OVER (UNDER)
EXPENDITURES 43,816 (34,403) 30,198 64,601 Net change in fund balances 43,816 (34,403) 30,198 64,601 FUND BALANCES:

Beginning of year 817,219 817,219 817,219 - End of year 861,035$ 782,816 $ 847,417 $ 64,601 $ Budgeted Amounts
115
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Brown Annex Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 3,000$ 3,000$ -$ (3,000)$ Use of money and property 300 300 20 (280) Total revenues 3,300 3,300 20 (3,280) EXPENDITURES:

Current:

General government - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 3,300 3,300 20 (3,280) OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 3,300 3,300 20 (3,280) FUND BALANCES:

Beginning of year 7,053 7,053 7,053 - End of year 10,353$ 10,353$ 7,073$ (3,280)$ Budgeted Amounts
116
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Eastgate Street Benefit District Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes -$ -$ -$ -$ Use of money and property 500 500 205 (295) Total revenues 500 500 205 (295) EXPENDITURES:

Current:

Engineering and Transportation - 14,076 - 14,076 Total expenditures - 14,076 - 14,076

REVENUES OVER (UNDER)
EXPENDITURES 500 (13,576) 205 13,781 Net change in fund balances 500 (13,576) 205 13,781 FUND BALANCES:

Beginning of year 69,550 69,550 69,550 - End of year 70,050$ 55,974$ 69,755$ 13,781$ Budgeted Amounts
117
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual AB 939 Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 18,400$ 18,400$ -$ (18,400)$ Use of money and property 4,450 4,450 761 (3,689) Total revenues 22,850 22,850 761 (22,089) EXPENDITURES:

Current:

Engineering and Transportation 75,298 75,321 53,633 21,688 Total expenditures 75,298 75,321 53,633 21,688

REVENUES OVER (UNDER)
EXPENDITURES (52,448) (52,471) (52,872) (401) Net change in fund balances (52,448) (52,471) (52,872) (401) FUND BALANCES:

Beginning of year 281,239 281,239 281,239 - End of year 228,791$ 228,768 $ 228,367 $ (401) $ Budgeted Amounts
118
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Neighborhood Park Fees Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 100,000$ 100,000$ 137,074$ 37,074$ Intergovernmental - - - - Use of money and property 18,000 18,000 2,898 (15,102) Total revenues 118,000 118,000 139,972 21,972 EXPENDITURES:

Current:

General government - - - - Public works 20,700 20,700 5,834 14,866
Capital outlay - 960,788 1,597 959,191 Total expenditures 20,700 981,488 7,431 974,057

REVENUES OVER (UNDER)
EXPENDITURES 97,300 (863,488) 132,541 996,029 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 97,300 (863,488) 132,541 996,029 FUND BALANCES:

Beginning of year 916,055 916,055 916,055 - End of year 1,013,355$ 52,567 $ 1,048,596 $ 996,029 $ Budgeted Amounts
119
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual BEGIN Grant Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ - $ 79,213$ 79,213 $ Use of money and property 500 500 1,339 839 Total revenues 500 500 80,552 80,052 EXPENDITURES:

Current:

Economic development - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 500 500 80,552 80,052 Net change in fund balances 500 500 80,552 80,052 FUND BALANCES:

Beginning of year 387,844 387,844 387,844 - End of year 388,344$ 388,344 $ 468,396 $ 80,052 $ Budgeted Amounts
120
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Program Income BEGIN Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ - $ - $ - $ Use of money and property 3,000 3,000 669 (2,331) Total revenues 3,000 3,000 669 (2,331) EXPENDITURES:

Current:

Economic development - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 3,000 3,000 669 (2,331) Net change in fund balances 3,000 3,000 669 (2,331) FUND BALANCES:

Beginning of year 228,437 228,437 228,437 - End of year 231,437$ 231,437 $ 229,106 $ (2,331) $ Budgeted Amounts
121
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure H Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes 4,336,616$ 4,336,616$ 4,891,723$ 555,107$ Use of money and property 8,000 8,000 5,747 (2,253) Other revenues - - 328 328 Total revenues 4,344,616 4,344,616 4,897,798 553,182 EXPENDITURES:

Current:

Public safety 4,258,895 4,303,815 3,872,736 431,079 Capital outlay - - - - Total expenditures 4,258,895 4,303,815 3,872,736 431,079

REVENUES OVER (UNDER)
EXPENDITURES 85,721 40,801 1,025,062 984,261 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out (152,000) (152,000) (152,000) - Total other financing sources (uses) (152,000) (152,000) (152,000) - Net change in fund balances (66,279) (111,199) 873,062 984,261 FUND BALANCES:

Beginning of year 1,734,762 1,734,762 1,734,762 - End of year 1,668,483$ 1,623,563 $ 2,607,824 $ 984,261 $ Budgeted Amounts
122
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual State Gas Tax Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 1,163,698$ 1,163,698 $ 1,150,986 $ (12,712) $ Use of money and property 00 68 68
Other revenues 1,000 1,000 2,920 1,920
Total revenues 1,164,698 1,164,698 1,153,974 (10,724) EXPENDITURES:

Current:

Engineering and Transportation 7,300 12,973 1,901 11,072 Public works 1,310,308 1,317,637 1,234,080 83,557 Capital outlay - - - - Debt service:

Principal 109,625 109,625 109,625 - Interest and fiscal charges 9,354 9,354 9,354 - Total expenditures 1,436,587 1,449,589 1,354,960 94,629

REVENUES OVER (UNDER)
EXPENDITURES (271,889) (284,891) (200,986) 83,905 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Total other financing sources (uses) - - - - Net change in fund balances (271,889) (284,891) (200,986) 83,905 FUND BALANCES (DEFICIT):

Beginning of year (105,067) (105,067) (105,067) - End of year (376,956)$ (389,958) $ (306,053) $ 83,905 $ Budgeted Amounts
123
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SLESF Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 100,000$ 100,000 $ 176,583$ 76,583$ Total revenues 100,000 100,000 176,583 76,583 EXPENDITURES:

Current:

Public safety - - 155,944 (155,944) Total expenditures - - 155,944 (155,944)

REVENUES OVER (UNDER)
EXPENDITURES 100,000 100,000 20,639 (79,361) OTHER FINANCING SOURCES (USES):

Transfers out (100,000) (100,000) - 100,000 Total other financing sources (uses) (100,000) (100,000) - 100,000 Net change in fund balances - - 20,639 20,639 FUND BALANCES:

Beginning of year 27,690 27,690 27,690 - End of year 27,690$ 27,690$ 48,329$ 20,639$ Budgeted Amounts
124
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Abandoned Vehicle Abatement Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 44,000$ 44,000$ 31,536$ (12,464)$ Use of money and property 1,000 1,000 236 (764) Total revenues 45,000 45,000 31,772 (13,228) EXPENDITURES:

Current:

Public safety 64,827 66,827 49,316 17,511
Total expenditures 64,827 66,827 49,316 17,511

REVENUES OVER (UNDER)
EXPENDITURES (19,827) (21,827) (17,544) 4,283 Net change in fund balances (19,827) (21,827) (17,544) 4,283 FUND BALANCES (DEFICIT):

Beginning of year 82,914 82,914 82,914 - End of year 63,087$ 61,087$ 65,370$ 4,283$ Budgeted Amounts
125
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Seized Property Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 1,600$ 1,600$ 8,952$ 7,352$ Use of money and property 250 250 155 (95) Total revenues 1,850 1,850 9,107 7,257 EXPENDITURES:

Current:

Public safety - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 1,850 1,850 9,107 7,257 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 1,850 1,850 9,107 7,257 FUND BALANCES:

Beginning of year 15,673 15,673 15,673 - End of year 17,523$ 17,523$ 24,780$ 7,257$ Budgeted Amounts
126
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Downtown Revitalization Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 11,751$ 11,751$ 8,766$ (2,985)$ Use of money and property 1,100 1,100 229 (871) Total revenues 12,851 12,851 8,995 (3,856) EXPENDITURES:

Current:

Economic development 35,855 35,855 16,145 19,710 Total expenditures 35,855 35,855 16,145 19,710

REVENUES OVER (UNDER)
EXPENDITURES (23,004) (23,004) (7,150) 15,854 OTHER FINANCING SOURCES (USES):

Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (23,004) (23,004) (7,150) 15,854 FUND BALANCES:

Beginning of year 79,669 79,669 79,669 - End of year 56,665$ 56,665$ 72,519$ 15,854$ Budgeted Amounts
127
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street-Light and Landscape District Special Revenue Fund For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes 447,408$ 447,408$ 437,398$ (10,010)$ Use of money and property - - - - Total revenues 447,408 447,408 437,398 (10,010) EXPENDITURES:

Current:

Public works 204,640 204,640 203,482 1,158
Community services 394,989 394,989 338,755 56,234 Total expenditures 599,629 599,629 542,237 57,392

REVENUES OVER (UNDER)
EXPENDITURES (152,221) (152,221) (104,839) 47,382 Net change in fund balances (152,221) (152,221) (104,839) 47,382 FUND BALANCES (DEFICIT):

Beginning of year (187,538) (187,538) (187,538) - End of year (339,759)$ (339,759) $ (292,377) $ 47,382 $ Budgeted Amounts
128
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Offender Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 50,000$ 50,000$ 64,113$ 14,113$ Intergovernmental - 73,900 62,000 (11,900) Total revenues 50,000 123,900 126,113 2,213 EXPENDITURES:

Current:

Public safety 70,525 144,425 125,997 18,428 Total expenditures 70,525 144,425 125,997 18,428

REVENUES OVER (UNDER)
EXPENDITURES (20,525) (20,525) 116 20,641 Net change in fund balances (20,525) (20,525) 116 20,641 FUND BALANCES (DEFICIT):

Beginning of year 45,580 45,580 45,580 - End of year 25,055$ 25,055$ 45,696$ 20,641$ Budgeted Amounts
129
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Safety Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Fines and forfeitures 42,000$ 42,000$ 47,770$ 5,770$ Total revenues 42,000 42,000 47,770 5,770 EXPENDITURES:

Current:

Public safety - - 47,770 (47,770) Total expenditures - - 47,770 (47,770)

REVENUES OVER (UNDER)
EXPENDITURES 42,000 42,000 - (42,000) Net change in fund balances 42,000 42,000 - (42,000) FUND BALANCES (DEFICIT):

Beginning of year - - - - End of year 42,000$ 42,000$ -$ (42,000)$ Budgeted Amounts
130
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Used Oil Grants Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 13,400$ 13,400$ 12,426$ (974)$ Use of money and property 350 350 54 (296) Total revenues 13,750 13,750 12,480 (1,270) EXPENDITURES:

Current:

Engineering and Transportation - - - - Public works 14,375 14,375 13,461 914
Total expenditures 14,375 14,375 13,461 914

REVENUES OVER (UNDER)
EXPENDITURES (625) (625) (981) (356) Net change in fund balances (625) (625) (981) (356) FUND BALANCES:

Beginning of year 27,268 27,268 27,268 - End of year 26,643$ 26,643$ 26,287$ (356)$ Budgeted Amounts
131
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Department of Conservation Grant Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 15,000$ 15,000$ 12,411$ (2,589)$ Use of money and property 900 900 161 (739) Total revenues 15,900 15,900 12,572 (3,328) EXPENDITURES:

Current:

Engineering and Transportation 15,000 15,000 12,126 2,874 Total expenditures 15,000 15,000 12,126 2,874

REVENUES OVER (UNDER)
EXPENDITURES 900 900 446 (454) Net change in fund balances 900 900 446 (454) FUND BALANCES:

Beginning of year 68,422 68,422 68,422 - End of year 69,322$ 69,322$ 68,868$ (454)$ Budgeted Amounts
132
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CMAQ Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 1,502,460$ 1,502,460 $ 1,040,086 $ (462,374)$ Total revenues 1,502,460 1,502,460 1,040,086 (462,374) EXPENDITURES:

Current:

Engineering and Transportation 10,765 10,765 30,844 (20,079) Capital outlay 818,401 5,363,447 1,343,603 4,019,844 Total expenditures 829,166 5,374,212 1,374,447 3,999,765

REVENUES OVER (UNDER)
EXPENDITURES 673,294 (3,871,752) (334,361) 3,537,391 Net change in fund balances 673,294 (3,871,752) (334,361) 3,537,391 FUND BALANCES (DEFICIT):

Beginning of year (250,181) (250,181) (250,181) - End of year 423,113$ (4,121,933) $ (584,542) $ 3,537,391 $ Budgeted Amounts
133
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Community Facilities District Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes 680,101$ 680,101$ 676,429$ (3,672)$ Use of money and property 2,732 2,732 609 (2,123) Total revenues 682,833 682,833 677,038 (5,795) EXPENDITURES:

Current:

Public works - - 7,590 (7,590) Total expenditures - - 7,590 (7,590)

REVENUES OVER (UNDER)
EXPENDITURES 682,833 682,833 669,448 (13,385) OTHER FINANCING SOURCES (USES):

Transfers out (683,747) (683,747) (668,839) 14,908 Total other financing sources (uses) (683,747) (683,747) (668,839) 14,908 Net change in fund balances (914) (914) 609 1,523 FUND BALANCES:

Beginning of year 12,082 12,082 12,082 - End of year 11,168$ 11,168$ 12,691$ 1,523$ Budgeted Amounts
134
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Hydrant Benefit District Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Property and other taxes 200$ 200$ 442$ 242$ Total revenues 200 200 442 242 EXPENDITURES:

Capital outla
y - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 200 200 442 242 Net change in fund balances 200 200 442 242 FUND BALANCES:

Beginning of year 128,697 128,697 128,697 - End of year 128,897$ 128,897 $ 129,139 $ 242 $ Budgeted Amounts
135
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transportation Development Act Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ - $ - $ -$ Use of money and property 12 12 - (12) Total revenues 12 12 - (12) EXPENDITURES:

Current:

Public works 2,500 2,500 1,531 969 Capital outlay - 260,884 101 260,783 Total expenditures 2,500 263,384 1,632 261,752

REVENUES OVER (UNDER)
EXPENDITURES (2,488) (263,372) (1,632) 261,740 Net change in fund balances (2,488) (263,372) (1,632) 261,740 FUND BALANCES (DEFICIT):

Beginning of year 27,050 27,050 27,050 - End of year 24,562$ (236,322)$ 25,418$ 261,740$ Budgeted Amounts
136
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Community Center Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 160,000$ 160,000$ 276,085$ 116,085$ Other revenues - - - - Total revenues 160,000 160,000 276,085 116,085 EXPENDITURES:

Current:

Community services 465,366 465,366 362,724 102,642 Total expenditures 465,366 465,366 362,724 102,642

REVENUES OVER (UNDER)
EXPENDITURES (305,366) (305,366) (86,639) 218,727 OTHER FINANCING SOURCES (USES):

Transfers in - - 0 - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (305,366) (305,366) (86,639) 218,727 FUND BALANCES (DEFICIT):

Beginning of year (1,934,847) (1,934,847) (1,934,847) - End of year (2,240,213)$ (2,240,213) $ (2,021,486) $ 218,727 $ Budgeted Amounts
137
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual LLEBG Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ 119 $ -$ (119)$ Use of money and property 350 350 93 (257) Total revenues 350 469 93 (376) EXPENDITURES:

Current:

Public safety - - 13,876 (13,876) Total expenditures - - 13,876 (13,876)

REVENUES OVER (UNDER)
EXPENDITURES 350 469 (13,783) (14,252) Net change in fund balances 350 469 (13,783) (14,252) FUND BALANCES:

Beginning of year 43,657 43,657 43,657 - End of year 44,007$ 44,126$ 29,874$ (14,252)$ Budgeted Amounts
138
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Public Facilities Fees Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 117,000$ 117,000$ 222,546$ 105,546$ Use of money and property 35,000 35,000 7,106 (27,894) Other revenues - - - - Total revenues 152,000 152,000 229,652 77,652 EXPENDITURES:

Current:

General government
Public safety 44,042 44,042 44,045 (3)
Capital outlay 300,000 1,513,054 148,306 1,364,748 Total expenditures 344,042 1,557,096 192,351 1,364,745

REVENUES OVER (UNDER)
EXPENDITURES (192,042) (1,405,096) 37,301 1,442,397 OTHER FINANCING SOURCES (USES):

Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (192,042) (1,405,096) 37,301 1,442,397 FUND BALANCES:

Beginning of year 2,455,650 2,455,650 2,455,650 - End of year 2,263,608$ 1,050,554 $ 2,492,951 $ 1,442,397 $ Budgeted Amounts
139
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Daniel Whitmore House Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Use of money and property -$ - $ - $ - $ Total revenues - - - - EXPENDITURES:

Current:

Community services 8,112 8,112 7,810 302 Total expenditures 8,112 8,112 7,810 302

REVENUES OVER (UNDER)
EXPENDITURES (8,112) (8,112) (7,810) 302 OTHER FINANCING SOURCES (USES):

Transfers in 8,112 8,112 7,811 (301) Total other financing sources (uses) 8,112 8,112 7,811 (301) Net change in fund balances - - 1 1 FUND BALANCES (DEFICIT):

Beginning of year (121) (121) (121) - End of year (121)$ (121) $ (120) $ 1 $ Budgeted Amounts
140
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual RiverBluff Regional Park Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Charges for services 1,300$ 1,300$ 703$ (597) Intergovernmental - - 48,925 48,925 Total revenues 1,300 1,300 49,628 48,328 EXPENDITURES:

Capital outla
y - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES 1,300 1,300 49,628 48,328 Net change in fund balances 1,300 1,300 49,628 48,328 FUND BALANCES (DEFICIT):

Beginning of year (24,546) (24,546) (24,546) - End of year (23,246)$ (23,246) $ 25,082 $ 48,328 $ Budgeted Amounts
141
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Ceres Community Foundation Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Use of money and property -$ - $ 415 $ 415$ Other revenues 2,000 2,000 - (2,000) Total revenues 2,000 2,000 415 (1,585) EXPENDITURES:

Current:

General government 6,120 6,120 2,989 3,131 Community services - - - - Total expenditures 6,120 6,120 2,989 3,131

REVENUES OVER (UNDER)
EXPENDITURES (4,120) (4,120) (2,574) 1,546 OTHER FINANCING SOURCES (USES):

Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (4,120) (4,120) (2,574) 1,546 FUND BALANCES:

Beginning of year 142,751 142,751 142,751 - End of year 138,631$ 138,631 $ 140,177 $ 1,546 $ Budgeted Amounts
142
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual 2018 Public Safety Grants Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ - $ - $ -$ Total revenues - - - - EXPENDITURES:

Current:

Public safety - - - - Total expenditures - - - -

REVENUES OVER (UNDER)

EXPENDITURES - - - - Net change in fund balances - - - - FUND BALANCES (DEFICIT):

Beginning of year - - - - End of year -$ - $ - $ - $ Budgeted Amounts
143
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Clinton Whitmore Mansion Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Other revenues -$ -$ -$ -$ Total revenues - - - - EXPENDITURES:

Current:

Community services 45,469 45,469 42,163 3,306 Total expenditures 45,469 45,469 42,163 3,306

REVENUES OVER (UNDER)
EXPENDITURES (45,469) (45,469) (42,163) 3,306 Net change in fund balances (45,469) (45,469) (42,163) 3,306 FUND BALANCES (DEFICIT):

Beginning of year (74,242) (74,242) (74,242) - End of year (119,711)$ (119,711) $ (116,405) $ 3,306 $ Budgeted Amounts
144
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure L Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 1,555,211$ 1,555,211 $ 3,261,762 $ 1,706,551 $ Use of money and property 10,000 10,000 9,512 (488) Total revenues 1,565,211 1,565,211 3,271,274 1,706,063 EXPENDITURES:

Current:

Public works 83,200 96,020 41,542 54,478
Capital outlay 1,332,509 6,653,875 1,934,660 4,719,215 Total expenditures 1,415,709 6,749,895 1,976,202 4,773,693

REVENUES OVER (UNDER)
EXPENDITURES 149,502 (5,184,684) 1,295,072 6,479,756 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 149,502 (5,184,684) 1,295,072 6,479,756 FUND BALANCES (DEFICIT):

Beginning of year 3,180,052 3,180,052 3,180,052 - End of year 3,329,554$ (2,004,632) $ 4,475,124 $ 6,479,756 $ Budgeted Amounts
145
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Road Maintenance and Rehab Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 930,355$ 930,355 $ 979,672 $ 49,317 $ Use of money and property 5,000 5,000 3,587 (1,413) Total revenues 935,355 935,355 983,259 47,904 EXPENDITURES:

Current:

Public works 30,000 30,000 - 30,000 Capital outlay 602,642 2,325,130 22,141 2,302,989 Total expenditures 632,642 2,355,130 22,141 2,332,989

REVENUES OVER (UNDER)
EXPENDITURES 302,713 (1,419,775) 961,118 2,380,893 Net change in fund balances 302,713 (1,419,775) 961,118 2,380,893 FUND BALANCES (DEFICIT):

Beginning of year 826,179 826,179 826,179 - End of year 1,128,892$ (593,596) $ 1,787,297 $ 2,380,893 $ Budgeted Amounts
146
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental 160,000$ 160,000 $ - $ (160,000)$ Use of money and property - - - - Total revenues 160,000 160,000 - (160,000) EXPENDITURES:

Current:

Public works 115,000 115,000 2,100 112,900 Total expenditures 115,000 115,000 2,100 112,900

REVENUES OVER (UNDER)
EXPENDITURES 45,000 45,000 (2,100) (47,100) Net change in fund balances 45,000 45,000 (2,100) (47,100) FUND BALANCES (DEFICIT):

Beginning of year (263) (263) (263) - End of year 44,737$ 44,737$ (2,363)$ (47,100)$ Budgeted Amounts
SB2 Planning Grants Program Special Revenue Fund
147
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual SB 1383 Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ - $ 69,946$ 69,946 $ Use of money and property - - - - Total revenues - - 69,946 69,946 EXPENDITURES:

Current:

General government - - - - Total expenditures - - - -

REVENUES OVER (UNDER)
EXPENDITURES - - 69,946 69,946 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances - - 69,946 69,946 FUND BALANCES (DEFICIT):

Beginning of year - - - - End of year -$ - $ 69,946$ 69,946 $ Budgeted Amounts
148
ITEM 1
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CARES Act Special Revenue Fund
For the year ended June 30, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Intergovernmental -$ - $ 5,825,755$ 5,825,755 $ Use of money and property - - - - Total revenues - - 5,825,755 5,825,755 EXPENDITURES:

Current:

General government - 1,385,000 734,998 650,002 Public safety - 1,087,500 46,798 1,040,702 Engineering and Transportation - 350,000 173,418 176,582 Public works - 125,000 - 125,000 Community services - 475,000 20,872 454,128 Economic development - 180,000 - 180,000 Capital outlay - 1,565,000 9,543 1,555,457 Total expenditures - 5,167,500 985,629 4,181,871

REVENUES OVER (UNDER)
EXPENDITURES - (5,167,500) 4,840,126 10,007,626 OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances - (5,167,500) 4,840,126 10,007,626 FUND BALANCES (DEFICIT):

Beginning of year 601 601 601 - End of year 601$ (5,166,899)$ 4,840,727 $ 10,007,626 $ Budgeted Amounts
149
ITEM 1
Fund
Equipment Revolving
Information Technology
Risk Management
Building Maintenance
Accounts for the cost of providing workers' compensation and liability insurance coverage on a City-wide basis.

Accounts for the activities of building maintenance, custodial service, and building modification projects on a City-wide basis.

INTERNAL SERVICE FUNDS
Description
Internal Service Funds are used to account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis.

Accounts for the operation, maintenance, and replacement of City equipment.

Accounts for costs associated with maintaining the City's information systems.
150
ITEM 1
City of Ceres, California
Statement of Fund Net Position
Internal Service Funds
June 30, 2022
Equipment Information Risk Building
Revolving Technology Management Maintenance Totals
ASSETS
Current assets:

Cash and investments 2,504,989 $ 265,975 $ 1,442,122 $ 1,034,046 $ 5,247,132$ Accounts receivable 407 - - - 407 Total current assets 2,505,396 265,975 1,442,122 1,034,046 5,247,539 Noncurrent assets:

Machinery and equipment 8,505,257 443,306 - 323,891 9,272,454 Less accumulated depreciation (5,031,542) (263,920) - (141,363) (5,436,825) Total noncurrent assets 3,473,715 179,386 - 182,528 3,835,629 Total assets 5,979,111$ 445,361$ 1,442,122$ 1,216,574 $ 9,083,168$

LIABILITIES AND NET POSITION
Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 183,477$ 3,643$ 3,150$ 18,408 $ 208,678$ Due to other funds 531,805 - 235 - 532,040 Total current liabilities 715,282 3,643 3,385 18,408 740,718 Noncurrent liabilities:

Compensated absences 69,643 - - 65,537 135,180 Liability for claims - - 1,404,797 - 1,404,797 Total noncurrent liabilities 69,643 - 1,404,797 65,537 1,539,977 Total liabilities 784,925 3,643 1,408,182 83,945 2,280,695 Net Position:

Net investment in capital assets 3,473,715 179,386 - 182,528 3,835,629 Unrestricted net position (deficit)
1,720,471 262,332 33,940 950,101 2,966,844 Total net position 5,194,186 441,718 33,940 1,132,629 6,802,473 Total liabilities and net position 5,979,111$ 445,361$ 1,442,122$ 1,216,574 $ 9,083,168$ 151
ITEM 1
City of Ceres, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds
For the year ended June 30, 2022
Equipment Information Risk Building
Revolving Technology Management Maintenance Totals
OPERATING REVENUES:

Interdepartmental charges 2,515,887$ 1,133,659$ 2,200,526$ 1,541,984$ 7,392,056$ Other 133,545 126 7,607 287 141,565 Total operating revenues 2,649,432 1,133,785 2,208,133 1,542,271 7,533,621 OPERATING EXPENSES:

Salaries and benefits 529,053 654,157 92,159 710,186 1,985,555 Contractual and other services 51,099 191,923 - 114,426 357,448 Materials and supplies 848,801 150,310 - 275,985 1,275,096 Depreciation 562,693 46,076 - 22,667 631,436 Other operating costs 108,091 - 2,161,785 69,061 2,338,937 Total operating expenses 2,099,737 1,042,466 2,253,944 1,192,325 6,588,472 OPERATING INCOME (LOSS) 549,695 91,319 (45,811) 349,946 945,149 NONOPERATING REVENUE (EXPENSE):

Investment earnings (1) - - - (1) Transfers in (out) - - - - - Total non-operating revenue (1) - - - (1) NET INCOME (LOSS) 549,694 91,319 (45,811) 349,946 945,148 CHANGE IN NET POSITION 549,694 91,319 (45,811) 349,946 945,148 NET POSITION (DEFICIT):

Beginning of year 4,644,492 350,399
79,751 782,683 5,857,325
End of year 5,194,186$ 441,718$ 33,940$ 1,132,629$ 6,802,473$ 152
ITEM 1
City of Ceres, California
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2022
Equipment Information Risk Building
Revolving Technology Management Maintenance Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from other funds for services 2,515,480 $ 1,133,659 $ 2,201,526 $ 1,541,984 $ 7,392,649 $ Cash received from loss claim recoveries - - 7,607 - 7,607 Cash payments to suppliers for goods and services (751,822) (344,640) 2,100 (451,285) (1,545,647) Cash payments to employees for services (522,531) (654,157) (92,159) (704,419) (1,973,266) Cash payments for loss claims - - (1,775,784) - (1,775,784) Net cash provided (used) by operating activities 1,241,127 134,862 343,290 386,280 2,105,559 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers received (paid) 135,699 - - - 135,699 Net cash provided by noncapital financing activities 135,699 - - - 135,699

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets (1,407,019) (59,582) - (1) (1,466,602) Net cash (used) by capital and related financing activities (1,407,019) (59,582) - (1) (1,466,602) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest earning (1) - - - (1) Net increase in cash and cash equivalents (30,194) 75,280 343,290 386,279 774,655 CASH AND CASH EQUIVALENTS:

Beginning of year 2,535,183 190,695 1,098,832 647,767 4,472,477 End of year 2,504,989$ 265,975$ 1,442,122$ 1,034,046$ 5,247,132$ Reconciliation of income (loss) from operations to net
cash provided (used) by operating activities:

Income (loss) from operations 549,695$ 91,319$ (45,811)$ 349,946$ 945,149$ Adjustments to reconcile income (loss) from operations
to net cash provided (used) by operating activities:

Depreciation 562,693 46,076 - 22,667 631,436 (Increase) decrease in current assets:

Accounts receivable (407) - 1,000 - 593 Increase (decrease) in liabilities:

Accounts payable and accrued liabilities 122,624 (2,533) 2,100 7,900 130,091 Compensated absences 6,522 - - 5,767 12,289 Increase (decrease) in claims liability - noncurrent - - 386,001 - 386,001 Net cash provided (used) by operating activities 1,241,127$ 134,862$ 343,290$ 386,280$ 2,105,559$ 153
ITEM 1
Fund
Private Purpose Trust Funds
Former Ceres Redevelopment Agency
Successor Agency - Non-Housing
Successor Agency - Housing
Former Stanislaus-Ceres Redevelopment Commission
Successor Agency - Non-Housing
Successor Agency - Housing

TRUST AND AGENCY FUNDS
Description
Accounts for funds collected and disbursed for the
dissolution of the former Ceres Redevelopment Agency
related to Administration and Retirement of enforceable obligations.

Accounts for funds collected and disbursed for the
dissolution of the former Ceres Redevelopment Agency's
housing related debts.

Accounts for funds collected and disbursed for the
dissolution of the former Stanislaus-Ceres
Redevelopment Commission related to Administration
and Retirement of enforceable obligations.

Accounts for funds collected and disbursed for the
dissolution of the former Stanislaus-Ceres
Redevelopment Commission's housing related debts.
154
ITEM 1
City of Ceres, California
Combining Statement of Net Position
Private Purpose Trust Funds
June 30, 2022
Totals
Non-Housing Housing Non-Housing Housing 2022

ASSETS AND DEFERRED OUTFLOWS OF

RESOURCES
Current assets:

Cash and investments 5,803,303$ 630,423 $ 115,117 $ - $ 6,548,843$ Cash and investments with trustee/fiscal agent 2,061,500 - - - 2,061,500 Interest receivable 469 - - - 469 Total current assets 7,865,272 630,423 115,117 - 8,610,812 Non-Current assets:

Advances to other funds - 1,826,680 - - 1,826,680 Long-term loans receivable - 2,021,849 - 192,522 2,214,371 Construction in progress 12,500,147 - - - 12,500,147 Total Non-current assets 12,500,147 3,848,529 - 192,522 16,541,198 Total assets 20,365,419 4,478,952 115,117 192,522 25,152,010 Deferred outflows: Pension plan - - 73,249 - 73,249 Total assets and deferred outflows 20,365,419$ 4,478,952 $ 188,366 $ 192,522 $ 25,225,259

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND NET POSITION
Current liabilities:

Accounts payable and accrued liabilities 910$ -$ - $ - $ 910$ Interest payable - 8,591 - - 8,591 Compensated absences - current 9,589 1,918 11,507 Current portion of long term debt 1,637,415 - 60,000 - 1,697,415 Total current liabilities 1,647,914 8,591 61,918 - 1,718,423 Long-term liabilities:

Advances from Stanislaus County - - 266,702 - 266,702 Advances from City of Ceres General Fund 1,422,787 - 555,849 - 1,978,636 Advances from other funds 1,826,680 - - - 1,826,680 Due after one year 26,841,394 - 675,000 - 27,516,394 Net pension liability 53,125 - 123,010 - 176,135 Total long-term liabilities 30,143,986 - 1,620,561 - 31,764,547 Total liabilities 31,791,900 8,591 1,682,479 - 33,482,970 Deferred inflows: Pension plan 77,724 - 37,561 - 115,285 Total liabilities and deferred inflows 31,869,624 8,591 1,720,040 - 33,598,255 Net Position (Deficit):

Net position held in trust for
Redevelopment Dissolution (11,504,205) 4,470,361 (1,531,674) 192,522 (8,372,996) Total liabilities, deferred inflows, and net
position 20,365,419$ 4,478,952$ 188,366 $ 192,522 $ 25,225,259$ Successor Agency Successor Agency
Former Ceres Redevelopment Agency
Former Stanislaus - Ceres
Redevelopment Commission
155
ITEM 1
City of Ceres, California
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the year ended June 30, 2022
Totals
Non-Housing Housing Non-Housing Housing 2022
ADDITIONS:

Property taxes 3,095,939 $ - $ 168,328$ - $ 3,264,267$ Investment earnings 342,699 - 25 - 342,724 Other revenue 26,396 30,404 8,382 - 65,182 Total additions 3,465,034 30,404 176,735 - 3,672,173 DEDUCTIONS:

General and administrative 34,681 - 22,855 - 57,536 Salaries and benefits 126,561 - 70,087 - 196,648 Contractual and other services 66,741 - 7,278 - 74,019 Interest and debt service expenses 756,485 - 51,105 - 807,590 Total deductions 984,468 - 151,325 - 1,135,793 CHANGE IN FIDUCIARY NET POSITION 2,480,566 30,404 25,410 - 2,536,380 NET POSITION (DEFICIT):

Beginning of year (13,984,771) 4,439,957 (1,557,084) 192,522 (10,909,376) End of year (11,504,205)$ 4,470,361 $ (1,531,674) $ 192,522 $ (8,372,996)$ Former Ceres Redevelopment Agency
Former Stanislaus - Ceres
Redevelopment Commission
Successor Agency Successor Agency
156
ITEM 1
This page intentionally left blank.
157
ITEM 1
ITEM 1

ATTACHMENT D
ITEM 1

CITY OF CERES

GANN APPROPRIATIONS LIMIT SCHEDULE

FOR THE YEAR ENDED
JUNE 30, 2022
ITEM 1
City of Ceres
Gann Appropriations Limit Schedule
For the year ended June 30, 2022
Table of Contents
Independent Accountants' Report on Applying Agreed-Upon Procedures ........................................... 1-2 Gann Appropriations Limit Schedule ....................................................................................... .3 ITEM 1
JJACPA, Inc.

A Profess i onal Accounting Services Corp .

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON

PROCEDURES
The Honorable City Council
City of Ceres
Ceres, California
We have applied the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Ceres (the "City") for the fiscal year ended June 30, 2022 . These procedures, which were agreed to by the City and the League of California Cities ( as presented in the publication entitled Agreed upon Procedure s Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City's management is responsible for the Appropriations Limit Schedule. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report.

Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures performed and our findings were as follows:

1. 2.

3. We obtained the completed worksheets used by the City to calculate its Appropriations Limit for the fiscal year ended June 30, 2022 and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by Resolution of the City Council. We also compared the population and inflation options in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding : No exceptions were noted as a result of our procedures.

For the accompanying Appropriations Limit Schedule, we added line A, last year 's limit, to line E, total adjustments and compared the resulting amount to line F, this year's limit.

Finding : No exceptions were noted as a result of our procedures.

We compared the current year information presented in the accompanying Appropriations Limit Schedule to the other worksheets described in No. 1 above.

Finding : No exceptions were noted as a result of our procedures. 7080 Donlon Way, Suite 204, Dublin , CA 94568 • phone (925) 556-6200 • fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 • phone (707) 964-6325 www.jjacp a.com
ITEM 1
Page-2-Findings (continued)

4. We compared the prior year appropriations limit, presented in the accompanying Appropriations Limit Schedule, to the prior year appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures.

We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Schedule. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution.

JJ~ JmJ.

September 6, 2022 JJACP A, Inc.

ITEM 1

CITY OF CERES
Gann Appropriations Limit Schedule
For the year ended June 30, 2022
A. Appropriations limit for the year ended June 30, 2021 B. Calculation Factors:

1. Population Increase %

2. Inflation Increase%

3. Total adjustment factor
C. Annual Adjustment Increase
D. Other Adjustments
Assumed responsibility ( +)
E. Total Adjustments
F. Appropriations limit for the year ended June 30, 2022 3 Amount Source
$69,530,501 Prior year schedule

1.0019 State Department of Finance

1.0573 State Department of Finance ------1.0593 Bl* B2
4,123,159 [(B3-l)Al)]
NIA
$4,123,159 (C+D)
$73,653,660 (A+E)
ITEM 1

ATTACHMENT E
ITEM 1

CITY OF CERES, CALIFORNIA

SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2022
ITEM 1
City of Ceres, California
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2022
Table of Contents
Page(s)
Schedule of Expenditures of Federal Awards ....................................................................................... 1 Notes to Schedule of Expenditures of Federal Awards ......................................................................... 2 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on An Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................... 3-4 Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................ 5-6 Schedule of Findings and Questioned Costs ..................................................................................... 7-8 ITEM 1
City of Ceres, California
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2022
Federal Grantor/Pass-through
Grantor/Program or Cluster Title
U.S. Department of Transportation
Pass-through programs from the California Department of Transportation ITS Signal Synch PH IV
ITS Signal Synch PH III
City Wide Improve Ped Head Count/Push Buttons
ATP Roundabout El Camino/Pine
Traffic Signal-Morganr Rd/Service Rd
Traffic Signal Timing Optimization
ATP SRTSMorgan Corridor
ATP Roundabout El Camino/Pine
Blaker Rd/Central Ave Overlay
Total Highway, Planning and Construction
Total U.S. Department of Transportation
U.S. Department of Housing and Urban Development
Passed through from the County of Stanislaus
Community Development Block Grant
Total U.S. Department of Housing and Urban Development
U.S. Department of Justice
Direct Program :

Justice Assistance Grant
Bulletproof Vest Partnership Grant
2020 Coroma Vrrus Emergency Supplemental Funding Program Total U.S. Department of Justice
U.S. Department of the Treasury
Director Program:

Coronavirus State and Local Fiscal Recovery Funds
Pass through from the State of California Water Resources Cantrol Board Coronavirus State and Local Fiscal Recovery Funds
Coronavirus State and Local Fiscal Recovery Funds
Total U.S. Department of the 'Ireasury
Total Federal Expenditures
Federal
CFDA
Nwnber

20.205

14.218

16.738

16.607

16.034

21.027

21.027
Pass Through Entity Federal
Identification Total
Nwnber Expenditures
CML 5241 (063) $ 254,522
CML 5241 (062) 140,396
HSIPL 5241 (067) 803
CML 5241 (070) 3,000
CML 5241 (065) 306,933
CML 5241 (069) 53,274
SRTS 5241 (072) 40,215
CML 5241 (070) 39,670
STPL 5241 (073) 503,751
1,342,564
1,342,564
BOS #2005365 175,319
175,319
13,757
2,527
119
16,403
985,629
213947 563,381
CA5010028 594,178
2,143,188
$ 3,677,474
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this supplementary information. 1 ITEM 1
City of Ceres, California
Notes to Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2022

1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal A wards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

2. DESCRIPTION OF MAJOR PROGRAMS
Highway, Planning and Construction {CFDA #20.205)
This program provides assistance to State transportation agencies in the planning and development of an integrated, interconnected transportation system important to interstate commerce and travel by constructing and rehabilitating the National Highway System (NHS), including the Eisenhower Interstate System; and for transportation improvements to most other public roads; to provide aid for the repair of Federal-aid highways following disasters; to foster safe highway design; to replace or rehabilitate deficient or obsolete bridges; and to provide for other special purposes. This program also provides for the improvement ofroads in Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, the Northern Mariana Islands, and the Alaska Highway. The Federal Lands Highway Program (FLHP), as an adjunct to the Federal Aid Highway Program, provides assistance to the Federal Land Management Agencies (FLMAs) for Federally owned roads. It provides transportation engineering services for planning, design, construction, and rehabilitation of the highways and bridges providing access to federally owned lands. The Federal Lands Highway organization also provides training, technology, deployment, engineering services, and products to other customers. The City expended funds that improved transportation within City boundaries.

Coronavirus State and Local Fiscal Recovery Funds {CFDA #21.027) The purpose of the Coronavirus State and Local Fiscal Recovery Funds ("CSLFRF") is to provide direct payments to states (defined to include the District of Columbia), US territories (defined to include Puerto Rico, US Virgin Islands, Guam, Northern Mariana Islands, and American Samoa), tribal governments, metropolitan cities, counties, and ( through states) non-entitlement units oflocal government ( collectively the "eligible entities") to:

1. Respond to the public health emergency, COVID-19 or its negative economic impacts, including providing assistance to households, small businesses, nonprofits, and impacted industries, such as tourism, travel, and hospitality;

2. Respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of eligible employers that have eligible workers who are performing essential work, or by providing grants to eligible entities who perform essential work;

3. Provide government services, to the extent COVID-19 caused a reduction in revenues collected in the most recent full fiscal year of the state, territory, tribal government, metropolitan city, county, or non-entitlement units of local government;

4. Make necessary investments in water, sewer, or broadband infrastructure. 2 ITEM 1
City of Ceres, California
Notes to Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2022

3. INDIRECT COST ELECTION
The City has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
3 ITEM 1
JJACPA, Inc.

A Profe sional Accounting erv1ces Corp.

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING

STANDARDS
The Honorable City Council
City of Ceres
Ceres, California
Independent Auditor's Report
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Ceres (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated June 7, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.

Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 7080 Donlon Way, Suite 204, Dublin, CA 94568 • phone (925) 556-6200 • fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 • phone (707) 964-6325 www.jjacpa.com
ITEM 1
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance.

Accordingly, this communication is not suitable for any other purpose.

JJ~ JNJ.

June 7, 2023 JJACP A, Inc.

Dublin,CA
ITEM 1
JJACPA, Inc.

A Professional Accounting erv1ces Corp .

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF

EXPENDITURES OF FEDERAL AW ARDS REQUIRED BY THE UNIFORM GUIDANCE The Honorable City Council
City of Ceres
Ceres, California
Independent Auditor's Report
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Ceres's (City) compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2022. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above.
7080 Donlon Way, Suite 204, Dublin, CA 94568 • phone (925) 556-6200 • fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 • phone (707) 964-6325 www.jjacpa.com
ITEM 1
Responsibilities ofManagementfor Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal programs.

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

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material noncompliance, 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 City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of Example Entity's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.

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

Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2022-001. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

ITEM 1
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.

A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

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

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

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon, dated June 7, 2023, which contained unmodified opinions on those financial statements.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 basic financial statements and certain additional procedures including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
ff~ JNJ.

June 7, 2023 JJACP A, Inc.

ITEM 1
City of Ceres, California
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Noncompliance material to financial statements noted?
Federal Awards
Internal control over major programs:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for major programs:

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?
Identification of major programs:

CFDANumber Name of Federal Program or Cluster
Highway Planning and Construction
Unmodified
No
None reported
No
No
None reported
Unmodified
Yes

20.205

21.027 Coronavims State and Local Fiscal Recovery Funds Dollar threshold used to distinguish
between Type A and Type B programs:

Auditee qualified as low-risk auditee?
9 $750,000
No
ITEM 1
City of Ceres, California
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2022
Section II - Financial Statement Findings
No matters were reported.

Section III-Federal Award Findings and Questioned Costs Finding 2022-001 - Timeliness
CFDA Title and Number:

Federal Agency:

Pass-through Entity:

Year:

Highway Planning and Construction (20.205)
Coronavirus State and Local Fiscal Recovery Funds (21.207) U.S. Department Transportation
U.S. Department of the Treasury
State of California Department of Transportation
State of California Department of Water Resources Control Board 2022
Criteria: Section 200.512(a) of the Uniform Guidance states that an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.

Condition: The City did not complete the audit and submit the data collection form and reporting package within nine months after the end of the fiscal year.

Questioned Costs: None
Context: The City did not schedule a single audit to be performed until after the deadline had passed.

Effect or Potential Effect: The City did not meet the audit requirements as provided in Section 200.512(a).

Cause: The City did not have policies in place to have an audit completed or data collection form submitted before the deadline.

Recommendation: The City should implement policies and procedures to have the audit completed and data collection form filed before the deadline.

Responsible Official's Response and Corrective Action Planned: The City will work closely with the independent auditor to ensure single audits are competed within the specified timeline.

Section IV - Status of Prior Year Audit Findings
There were no prior year audit findings.

Section V - Corrective Action Plan
Provided in Section III above.
10 ATTACHMENT F
ITEM 1

CITY OF CERES

REPORT ON COMPLIANCE WITH

STANISLAUS COUNTY MEASURE H

FOR FIRE AND POLICE PUBLIC PURPOSES
FOR THE YEAR ENDED JUNE 30, 2022
ITEM 1
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2022
Table of Contents
Independent Accountant's Report on Applying Agreed-Upon Procedures .................................. 1 Financial Statements:

Balance Sheet. .................................................................................................................................. 4 Statement of Revenues, Expenditures and
Changes in Fund Balances ......................................................................................................... 5 Notes to Financial Statements ......................................................................................................... 6 Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ................................................................................................................... 11 Note to Supplementary Information .............................................................................................. 12 ITEM 1
JJACPA, Inc.

A Pt·ofessi o na l Accounti . ng Ser v ·ces Cor p .

Independent Accountant's Report on Applying Agreed-Upon Procedures To the Honorable Mayor and Members of City Council
of the City of Ceres
Ceres, California
We have performed the procedures enumerated below, which were agreed to by the management of the City of Ceres (City), solely to assist you with compliance with the reporting requirements of the Stanislaus County Initiative Measure H (Initiative) requirements for the year ended June 30, 2022. The City's management is responsible for the financial information included in this report and the compliance with the Stanislaus County Measure H Funds use of funds. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. a. Verified the appropriateness of personnel and support costs, including equipment purchases, using the City's policies and procedures as the standard for verification.

Findings : No exceptions were noted.
b. Determined that the Balance Sheet and Schedule of Changes in Fund Balance are an accurate reflection of information contained in the City's records.

Findings: No exceptions were noted.
c. Determined that revenues from the Measure H Funds for the period are included in the Schedule of Changes in Fund Balance even if they were deposited by the City after the end of the period (i.e., treats revenues from Measure Hon a modified accrual basis).

Findings: No exceptions were noted.
d. Determined that personnel time charged to the program were expended only for fire and police services.

Findings: No exceptions were noted.
e. Determined that personnel expenses charged to the program are limited to personnel funded by the Initiative for the purposes stated in d above.

Findings: No exceptions were noted.
7080 Donlon Way, Suite 204, Dublin, CA 94568 • phone (925) 556-6200 • fax: (707) 242-7392 1102 South Main Street, #1, Fort Bragg, CA 95437 • phone (707) 964-6325 www.jjacpa.com
ITEM 1
Page - 2 - Findings (continued)
f. Determined that direct charges to Measure H Funds are not also included in indirect costs (i.e., space charges) also charged to the Fund.

Findings: No exceptions were noted.
g. Determined that equipment purchases made with Measure H Funds are only for items specifically approved by the Initiative in the City's budget.

Findings: No exceptions were noted.
h. Determined that equipment purchased with Measure H Funds is in the custody and use of the personnel funded by Measure H.

Findings: No exceptions were noted.

1. Identified non-compliance with applicable statute, regulation, City policy, or Initiative requirements, and any questionable or disallowed amounts received for the period.

Findings: No exceptions were noted.

Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of City management, the City Council, others within the entity, and Stanislaus County or other applicable governmental entities and is not intended to be and should not be used by anyone other than these specified parties.

February 24, 2023 JJACPA, Inc.

Dublin,CA
ITEM 1

FINANCIAL STATEMENTS
3 ITEM 1
City of Ceres
Measure H Fund
Balance Sheet
June 30, 2022
Assets:

Cash
Taxes receivable
Interest receivable
Total assets
ASSETS

LIABILITIES AND FUND BALANCE
Liabilities:

Accounts payable
Total liabilities
Fund Balance:

Restricted for fire and police public services
Total fund balance
Total liabilities and fund balance
$
$
$
$
The accompanying notes are an integral part of these financial statements. 4 2022
1,789,702
845,499
230
2,635,431
27,607
27,607
226072824
2,607,824
2,635.431
ITEM 1
City of Ceres
Measure H Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances For the year ended June 30, 2022
REVENUES:

Sales tax
Use of money and property
Other revenues
Total revenues
EXPENDITURES:

Payroll and related costs
Contractual services
Materials and supplies
Total expenditures

REVENUES OVER (UNDER)

EXPENDITURES
OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:

Beginning of year
End of year
The accompanying notes are an integral part of these financial statements. 5 2022
$ 4,891,723
5,746
328
4,897,797
2,281,706
1,101,127
489,903
3,872,736
1,025,061
(152,000)
(152,000)
873,061
1,734,763
$ 2,607,824
ITEM 1
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2022
Notes to Financial Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Measure H Fund of the City of Ceres (City) are included as a separate special revenue fund in the basic financial statements of the City. The Measure H Fund is used to account for the City's share of revenues earned and expenditures incurred under Measure H. The accompanying financial statements are for the Measure H Fund only and are not intended to fairly present the financial position of the City and the results of its operations.

B. Basis of Accounting and Measurement Focus
The accompanying financial statements are prepared on the modified accrual basis of accounting.

Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet.

Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

C. Description of Funds
The accounts are maintained using fund accounting. A fund is a separate accounting entity with a self balancing set of accounts.

The City uses a special revenue fund to account for financial resources received from the half cent sales tax provision of Measure H. These funds are to be used towards salaries and benefits, and the obtaining, furnishing, operating, and/or maintaining of fire and police public services.

D. Fund Balance
Fund balance consists of only restricted amounts. Restricted amounts consist of resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government.
6 ITEM 1
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2022
Notes to Financial Statements, Continued

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash and Investments
The Measure H Fund pools its cash with the City. The City pools cash resources from all funds in order to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. Interest earned on investments is allocated to all funds on the basis of monthly cash and investment balances. The Measure H Fund, through the City pool, participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities (See Note 2D). LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

F. Receivables
Receivables represent the sales tax revenues due from the California State Board of Equalization.

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

2. CASH AND INVESTMENTS
A. Summary of Cash and Investments
The Measure H Fund participates in the City's cash and investment pool that includes all other City funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to each fund based on average month-end and investment balances in these funds. The Measure H Fund had cash and investments balance of $1,789,702 at June 30, 2022. 7 ITEM 1
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2022
Notes to Financial Statements, Continued

2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments, Continued
The California Government Code requires California banks and savings and loan associations to secure cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.

B. Investments
The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City's Investment Policy, which is more conservative than State statutes. Under provisions of this policy, the City is authorized to invest in the following types of investments:

Medium-term Corporate Notes Government Agency Securities Certificates of Deposit Treasury Bills and Notes
Bankers' Acceptances Passbook Savings Accounts
Commercial Paper State of California Local Agency Investment Fund Repurchase Agreements
C Risk Disclosure
Interest Rate Risk: As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years.

Specific maturities of investments depend on liquidity needs. At June 30, 2022, the City's pooled cash and investments had the following maturities:

Maturity
Less than one year
Percentage of Investment
100%
Credit Risk: It is the City's policy that commercial paper has a rating of "A-1" or higher by a nationally recognized statistical rating organization (NRSRO) and have a maturity date not exceeding 180 days from the date of purchase. Medium-term notes, with a final maturity not exceeding five years from the date of purchase, must have a rating of A or the equivalent by a NRSRO. Federal instrumentalities must have a rating of AAA or the equivalent by a NRSRO at the time of purchase with a maximum maturity of five years at the time of purchase. LAIF has a separate investment policy, governed by Government Code Sections 16480-16481.2, that provides credit standards for its investments.
8 ITEM 1
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2022
Notes to Financial Statements, Continued

2. CASH AND INVESTMENTS, Continued
C Risk Disclosure, Continued
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City currently has no security investments other than LAIF.

D. External Investment Pool - Local Agency Investment Fund The City's investments with LAIF at June 30, 2022, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments may include the following:

Structured Notes - 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 - generally mortgage-backed securities which 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.

The City is a voluntary participant in California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statute and is chaired by the State Treasurer who is responsible for day to day administration of LAIF. The total amount invested by all public agencies as of June 30, 2022 was $35,761,173,309 of which the City had a balance of $4,524,156. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2022 has a portfolio with market valuation of $193,463,490 thousand. Of the total invested, 98.12% was invested in non-derivative financial products and 1.88% in structured notes and asset-backed securities. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
9 ITEM 1

SUPPLEMENTARY INFORMATION
ITEM 1
City of Ceres
Measure H Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the year ended June 30, 2022
Variance
Original Final Positive
Budget Budget Actual (Negative)
REVENUES:

Sales tax $ 4,336,616 $ 4,336,616 $ 4,891,723 $ 555,107 Investment income 8,000 8,000 5,746 (2,254)
Reimbursements 328 328
Total revenues 4,344,616 4,344,616 4,897,797 553,181
EXPENDITURES:

Payroll and related costs 3,125,718 3,125,718 2,281,706 844,012 Contractual services 355,129 380,129 1,101,127 (720,998) Materials and supplies 778,048 797,968 489,903 308,065
Total expenditures 4,258,895 4,303,815 3,872,736 431,079

REVENUES OVER (UNDER)
EXPENDITURES 85,721 40,801 1,025,061 984,260
OTHER FINANCING SOURCES (USES):

Operating transfers in
Operating transfers out (152,000} {152,000} (152,000}
Total other financing sources (uses) (152,000} (152,000} (152,000}

REVENUES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING (USES) 873,061
FUND BALANCES:

Beginning of year 1,734,763
Endofyear $ 226072824
11 ITEM 1
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2022
Note to Supplementary Information
A. Budget
An annual budget is adopted by City Council for the special revenue funds. The budget is the maximum authorization for spending in a fiscal year. An encumbrance system is used to record commitments and obligations incurred throughout the year to ensure the budget authorization is not exceeded. The budget is developed for the Special Revenue Funds using the modified accrual basis of accounting. Amendments to the approved budget are approved by City Council. Supplemental appropriations are authorized by City Council during the year. All unencumbered budget appropriations lapse at the end of each fiscal year. Encumbrances for significant capital projects are re appropriated as part of the following year's budget. Outstanding encumbrances are committed in fund balance. At the fund level, expenditures may not legally exceed appropriations. 12 COUNCIL AGENDA REPORT

CITY COUNCIL

Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Bret Silveira, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: June 26, 2023
TO: Mayor and City Council
FROM: Douglas D. Dunford, Interim City Manager
CONTACT: Leticia Dias, Finance Director
[email protected], (209) 538-5764
SUBJECT: Resolution No. 2023-XXX, Approving the Allocation of Remaining American Rescue Plan Act (ARPA) Funding
RECOMMENDED COUNCIL ACTION:

Staff recommends the City Council Review the remaining American Rescue Plan Act Funding allowances and discuss the proposed expenditures.

I. BACKG ROUND:

In March 2021, Congress passed the American Rescue Plan Act of 2021 (ARPA) w hich established t he Coronavirus State and Local Fisc al Recovery Fund. This fund helps local governments, nationwide, with the C OVID-19 pandemic recovery assistance and specific types of infrastructure investment.

Ceres received $11.6 million th rough the Resc ue Plan. The City received the first installment payment of $5.8 milli on in July 2021 and the seco nd installment in July of 2022.

The US Department of Treasury has released its Final Rule with spec ifics on how the ARPA funds may be utilized. These funds may only be used for the following purposes.

• R eplacing Lost Public Sector Revenue-The final rule offers a standard allowance for revenue loss of $10 million. Recipients ma y use that amount for gov ernment services. Government services is define d as services traditionally provided by recipient governments. This expenditure category gives the Council broad latitude to use funds to provide government services with few restrictions • Public Health and Economic Impacts -Recipients can use f unds for programs, services or capital expenditures that res pond to the public health and negative economic impact of the pandemic. Funds can be used to address COVID -19 mitigation and prevention
• Provide Premium Pay for eligible workers performing essential work ITEM 2
• I nvest in Water , Sewer and Broadband Infrastructure- Funds may be used to make necessary investments to improve access to clean drinking water , to support vital wastewater and stormwater infrastructure and to expand affordable access to broadband internet
The US Department of Treasury has also outlined som e restrictions to the use of ARPA funds. ARPA funds cannot be used for the following:

• To offset a reduction in net tax revenue resulting from a change in state law. • As a c ontribution to a pension fund for the purpose of reducing and accrued, unfunded liability
• A s payment for debt service and replenishment of rainy-day funds To date, the City has allocated a total of $ 8,218,604 from the ARPA funds for variou s projects. Funds remain from the first and second installment totaling $3,432,906.

The purpose of this ag enda item is for the Council to provide direction on proposed projects/expenditures developed by City staff. Based on Council direction, staff will return to the Council with a formal resolution adopting a spending plan for the use of ARPA funds.

II. REASONS FOR RECOMMENDATION:

Remaining ARPA funds needs to be encumbered by December 2024. Approval of these projects will allow the City to encumber the funds.

III. F ISCAL IMPACTS :

The A merican Rescue Pl an Act provides $11.6 million in funding to hel p the Ci ty recover from t he impacts of the COVID -19 pandemic. Funds w ere received in two installments and will need to be encumbered by December 31,2024 and spent by December 31, 2026.

IV. E XISTING POLICY / R ELATIONSHIP TO THE STRATEGIC PLAN:

Government operations: Provide quality services to meet community needs, assuring that the City has help ful, well trained, properly equippe d staff wh o partner s with the community to provide efficient services.

V. P OLICY ALTERNATIVES:

The Council could choose to not approve the proposed expenditures.

VI. I NTERDEPARTMENTAL COORDINATION:

Each department submitted potential projects along with estimated costs for those projects.

VII. P UBLIC PARTICIPATION:

N/A
ITEM 2
VIII. ENVIRONMENTAL REVIEW:

N/A
IX. STEPS FOLL OWING APPROVAL:

Upon approval, staff will begin the process of completing the proposed projects.

Approved by: _ ___________________
Douglas D. Dunford
Interim City Manager
Attachments:

1. Attachment A – Resolution

2. Attachment B – List of Proposed Expenditures
ITEM 2
ITEM 2
RESO
LUTION NO. 2023-XXX

APPROVING THE ALLOCATION OF REMAINING AMERICAN RESCUE

PLAN ACT (ARPA) FUNDING

THE CITY COUNCIL
City of Ceres
WHEREAS, the American Rescue Plan Act of 2021 (ARPA) is a $1.9 trillion economic stimulus package passed by Congress and signed by President Biden on March 11, 2021, in response to the ongoing COVID -19 pandemic and associated economic challenges; and
WHEREAS, the City of Ceres has received $11.6 million through the Rescue Plan.

Funds must be obligated by December 31, 2024 and funds must be expended by December 31, 2026; and
WHEREAS, the City of Ceres received the first installment payment of $5.8 million in July 2021 and the second installment payment in July of 2022; and WHEREAS, the funding from the American Rescue Plan Act can be used to replace lost public sector revenue, support public health and economic impacts, provide premium pay to workers performing essential work and invest in water, sewer and broadband infrastructure; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres does hereby approve the allocation of remaining American Rescue Plan Act (ARPA) funding as presented in Attachment B.

PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 26
th day of June 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
________________________________
Javier Lopez, Mayor
ATTEST:
______________________________
Fallon Martin, City Clerk
ITEM 2

ATTACHMENT A
ITEM 2

ATTACHMENT B
Department Number Project Description Cost
City 1 Regulatory and User Fee Study 40,000.00 $
City 2 Impact Fee Study 65,000.00$
Rec/PW 3 Whitmore Park Gazebo Use Per Capita Grant of $200,000 350,000.00 $ PW 4 Grid Pruning 250,000.00$
REC/PW 5 Smryna Park Grant Match 892,624.04 $
PD 6 LPR for 34 Intersections 712,000.00 $
City 7 Comp and Class Study 142,265.00 $
ED 8 Contract with Chamber of Commerce 10,000.00 $
City 9 American Legion Hall Improvements New stove, refrigerator, clean outside building 29,094.53$
City 10 Community Center 60"tables, 36x72" tables and racks to transport tables 81,773.02$
PD 11 Code Enforcement Officers This amount would be thru 24/25 budget 277,375.00$
Rec/PW 12 Costa Fields Upgrade 200,000.00 $
PW/Rec 13 Full Time Employee Assigned to River Bluff Park 100,000.00 $ PD 14 UPS at the Police Department Uninterrupted Power Supply 125,000.00 $ ED 15 Fitness Life $30,000 Grant from National Fitness
Committee 180,000.00$
PD 16 Cell Phone Forensic Product Cellbrite 19,019.82 $ 3,474,151.41$
Leftover ARPA - 1st Installment $917,834.00
Leftover ARPA - 2nd Installment $2,515,071.50
($41,245.91)GRAND TOTA
L

ARPA FUNDING
Round II

SUBTOTAL
ITEM 2
ITEM 2

DRAFT MINUTES

CITY COUNCIL SPECIAL MEETING

CITY OF CERES, CALIFORNIA
(via ZOOM and in-person)

City Council Chambers, 2701 Fourth Street
Monday, June 12, 2023 at 6:00 p.m.

Mailing Address: Ceres City Hall, 2720 Second Street, Ceres, CA 95307-3292 Phone: (209) 538-5700 Fax: (209) 538-5780

CALL TO ORDER

M
ayor Lopez called the June 12, 2023 regular meeting to order at 6:00 p.m.

ROLL CALL – Present:

Ma
yor: Javier Lopez
Vice Mayor: Brett Silveira (District 3)
Councilmembers: James Casey (District 1) ; Rosalinda L. Vierra (District 2); Daniel A.

Martinez (District 4)

District 1
Councilmember
Casey
District 2
Councilmember
Vierra
District 4
Councilmember
Martinez
District 3
Vice Mayor
Silveira
Mayor Lopez
Present Present Present Present Present

INVOCATION

Invocation by Jim Hanna, Ceres Grace Community Church.

PLEDGE OF ALLEGIANCE

P
ledge of Allegiance was led by Mayor Lopez.

PRESENTATIONS

A. N
ational Public Works Week Proclamation

Public Works Director, Sam Royal, accepted the proclamation.

CITIZEN COMMUNICATIONS to the Council on items which have been described in the notice of this Special Meeting (five minutes)

S
hane Parson spoke regarding mobile food vendor permitting and the building inspector for the Community Development Department.

ITEM 5

DRAFT MINUTES
Special City Council Meeting
June 12, 2023

Page 2 ends

Ceres City CouncilJune 26, 2023

Ceres City Council
June 26, 2023