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 4-17, the City’s Schedules of Contributions, Pensions on pages 96, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 97, 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 13
To the Honorable Mayor and City Council
of the City of Ceres
Ceres, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial 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 October 21, 2025, under separate cover, on our consideration of City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
]]TVcT? \ÇvA
October 21, 2025 JJACPA, Inc.
D u b l i n , C A
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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, 2023. It should be re ad in conjunction with the accompanying transmittal letter and basic financial statements.
FINANCIAL HIGHLIGHTS
As of June 30, 2023, total assets o f the City exceeded its liab ilities by $235,727,481 (net position). The portion of net position that may be used to meet the government’s ongoing obligations to citizens and creditors (unrestricted net position) is $32,267,666. There are currently $12,026,765 of net position that are restricted and may only be used for a specific purpose. The remaining $191,433,050 is the net investment in capital assets.
As of June 30, 2023, the City’s Governmental Activities reporte d combined net position of $97,421,840 of that, $3,576,991 is unrestricted.
As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $31,988,537. Approximately 87% of th is total amount ($27.9 mill ion) 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 laws, regulations, or Council actions or it is not part of available, spendable resources. Of the remain ing balance, $7,351,278 is unassigned general fund balance and ($3,287,251) is unassigned special revenue fund balance.
Capital assets in the governmental activities, net of depreciation, increased to $81,934,431 from $81,578,892, which includes $111,225,836 of infrastructure per the requirements of GASB 34.
This increase is attributed to the purchase of additional machi nery and equipment due to the easing of supply chain issues.
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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, 2023, the City’s major funds are as follows:
GOVERNMENTAL FUNDS:
General Fund
Measure H Special Revenue Fund
Community Center Special Revenue Fund
HOME 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 47–93 of this report.
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 104-157 of this report.
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
8 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 $235,727,481 as of June 30, 2023.
The Summary of Net Position as of June 30, 2023, and 2022, follows:
Govern- Business- Govern- Business-
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 42,717,983$ 56,906,292$ 99,624,275$ 37,336,693$ 44,561,683$ 81,898,376$ Noncurrent assets 88,693,460 101,706,966 190,400,426 89,252,378 72,095,947 161,348,325 Total assets 131,411,443 158,613,258 290,024,701 126,589,071 116,657,630 243,246,701 Deferred outflows: Pension Plan 18,653,573 2,962,695 21,616,268 7,559,716 1,117,794 8,677,510 Total assets and deferred outflows 150,065,016 161,575,953 311,640,969 134,148,787 117,775,424 251,924,211 Current and other liabilities 5,904,340 7,887,720 13,792,060 6,441,814 2,991,664 9,433,478 Long-term liabilities 42,161,700 14,349,450 56,511,150 22,626,479 31,042,671 53,669,150 Total liabilities 48,066,040 22,237,170 70,303,210 29,068,293 34,034,335 63,102,628 Deferred inflows: Pension Plan 4,577,136 1,033,142 5,610,278 13,092,835 2,447,681 15,540,516 Total liabilities and deferred inflows 52,643,176 23,270,312 75,913,488 42,161,128 36,482,016 78,643,144 Net position:
Net investment in capital assets 81,818,084 109,614,966 191,433,050 80,782,202 44,236,726 125,018,928 Restricted 12,026,765 - 12,026,765 12,507,876 - 12,507,876 Unrestricted 3,576,991 28,690,675 32,267,666 (1,302,419) 37,056,682 35,754,263 Total net position 97,421,840$ 138,305,641$ 235,727,481$ 91,987,659$ 81,293,408$ 173,281,067$ Summary of Net Position
20222023
Restricted net position decreased by $481,111 primarily due to higher expenditures related to Measure H, which required the use of restricted fund balance.
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
9 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2023, and 2022, follows:
Gov ern- Business- Gov ern- Business-
mental type mental type
Activities Activities Total Activities Activities Total Revenues :
Program revenues:
Charges for services 5,175,997$ 28,236,824 $ 33,412,821 $ 2,228,871 $ 27,698,671 $ 29,927,542 $ G rants and contributions:
Operating 14,354,016 - 14,354,016 20,366,231 - 20,366,231 Capital 5,368,640 43,723,782 49,092,422 3,909,176 - 3,909,176 G eneral revenues:
Property tax es
and assessments 4,054,327 - 4,054,327 2,474,768 - 2,474,768 Sales and use tax 8,130,402 - 8,130,402 9,587,174 - 9,587,174 Utility users tax 1,523,199 - 1,523,199 1,057,622 - 1,057,622 Other taxes 3,053,996 - 3,053,996 961,921 - 961,921 State motor vehcile in-lieu tax 4,570,402 - 4,570,402 4,284,543 - 4,284,543 Use of m oney and property 504,482 237,841 742,323 438,261 126,380 564,641 Other general 32,767 2,867,253 2,900,020 3,059,800 12,402,350 15,462,150 Total revenues 46,768,228 75,065,700 121,833,928 48,368,367 40,227,401 70,399,410 Expens es :
Governmental activities :
G eneral governm ent 6,083,262 - 6,083,262 5,396,614 - 5,396,614 Public safety 27,330,653 - 27,330,653 24,362,856 - 24,362,856 Engineering and transportation 167,039 - 167,039 364,629 - 364,629 Public works 3,483,044 - 3,483,044 6,025,953 - 6,025,953 Com m unity services 3,733,912 - 3,733,912 3,393,321 - 3,393,321 Econom ic developm ent 226,096 - 226,096 108,315 - 108,315 Interest and fiscal charges 6,041 - 6,041 9,354 - 9,354 Business-type acti vi ties:
Water - 8,495,569 8,495,569 - 7,228,391 7,228,391 Sewer - 9,858,254 9,858,254 - 8,385,900 8,385,900 STANCOG - 3,644 3,644 - 83 83 Total ex penses 41,030,047 18,357,467 59,387,514 39,661,042 15,614,374 55,275,416 Ex cess (Deficiency) of revenues over
ex penditures before transfers 5,738,181 56,708,233 62,446,414 8,707,325 24,613,027 33,320,352 Transfers (304,000) 304,000 - (304,000) 304,000 - Change in net position 5,434,181 57,012,233 62,446,414 8,403,325 24,917,027 33,320,352 Net position:
Beginning of year 91,987,659 81,293,408 173,281,067 83,584,334 56,376,381 139,960,715 End of year 97,421,840$ 138,305,641 $ 235,727,481 $ 91,987,659 $ 81,293,408 $ 173,281,067 $ 20222023
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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 $121,833,928 for the fiscal year ended June 30, 2023. Approximately 61% of the City’s key revenues are generated from five major sources.
The following discusses variances in key revenues from the prior fiscal year:
1. Sales Tax. Annual receipts decreased by 15%. This decrease is mainly attr ibuted to a slow down of the economy due to inflation pressures and a reduction in consumer spending.
2. Property Tax. Annual receipts increased by 64 %, due to rising home prices an d a shift in the property tax allocation between the City and the County.
3. Grants and Contributions – Governmental Activities Operating. There was a decrease of 30% in Governmental operating grants and contributions mainl y due to changes in the classification in revenue.
4. Grants and Contributions – Business Type Activities Capital. There was an increase from $0 in Fiscal Year 2022 to $43,723,782 in Fiscal Year 2023 for capital grants and contributions in the water fund. This increase is mainly due to the draw down of funds from the State Water Resources Control Board State Revolving Fund lo a n f o r t h e S t a n i s l a u s Regional Water Authority infrastructure project.
5. State Motor Vehicle In-Tax – Annual receipts increased by 7%. The increase is due to increased vehicle registration fees.
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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 $59,387,514.
Governmental activity expenses totaled $41,030,047 or 69% of to tal expenses. Business-type activities incurred $18,357,467 of expenses during the fiscal year. Public safety costs represented 67% of total governmental activities expenses, which represented the largest single expense for governmental activities.
Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs.
Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2023, and 2022, are as follows:
Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 6,083,262$ 244,419$ 5,396,614$ 2,292,108$ Public safety 27,330,653 (20,178,890) 24,362,856 (17,361,848) Engineering and transportation 167,039 1,076,238 364,629 3,262,135 Public works 3,483,044 4,339,909 6,025,953 421,269 Community services 3,733,912 (1,380,933) 3,393,321 (1,665,102) Economic development 226,096 (226,096) 108,315 (95,972) Interest and fiscal charges 6,041 (6,041) 9,354 (9,354) Total 41,030,047$ (16,131,394)$ 39,661,042$ (13,156,764)$ 2023 2022
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
12 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Revenues by source for the fiscal years ended June 30, 2023, and 2022, are as follows:
Charges for services
11.07%
Operating grants
30.69%
Capital grants
11.48%
Property taxes
8.67%
Sales and use tax
17.38%
Utility users tax
3.26%
Other taxes
6.53%
State motor vehicle
in-lieu tax
9.77%
Use of money and
property
1.08%
Other general
revenues
0.07%
Revenues by Source - Governmental Activities
2023
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
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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 $138,305,641. The City has three business-type activities: Water, Sewer, and STANCOG. Water accounts for 62%, Sewer accounts for 38% of total busines s-type operating activity reve nue, and STANCOG accounts for less than 1%. The expenses and program revenues for the business-type activities for the fiscal year ended June 30, 2023, and 2022, are as follows:
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Water Sewer STANCOG
Program revenues Operating expenses
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
Water Sewer STANCOG
Program revenues Operating expenses
Expenses and Program Revenues
Business-type Activities
2022
Expenses and Program Revenues
Business-type Activities
2023
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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, 2023, and 2022, are as follows:
Charges for
services
38%
Investment
earnings
0%
Other general
revenues
4%Capital Grants
and Contributions
58%
Revenues by Source - Business-type Activities
2023
Charges for
services
70%
Investment
earnings
0%
Other general
revenues
30%
Revenues by Source - Business-type Activities
2022
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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, 2023, the City’s governmental funds reported combined fund balances of $31,988,537. This is an increase of $4,076,311 or 15% 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, 2023, General Fund unassigned fund balance totaled $7,351,278 with $17,963 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, 2023, the majority of this money was used to continue with the Morrow Village sidewalk improvement project.
Proprietary funds. The City’s proprietary funds net position increased by $57,012,233 in the fiscal year ended June 30, 2023. This was primarily due to funds received through the TCP settlement and capital contributions from the draw down of State Revolving Loan funds to build the Stanislaus Regional Water Authority infrastructure. Factors concerning the finances of t he 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 sho ws an increase of $639,372, primarily driven by higher collections in property taxes, other taxes, an d license and permit revenues. The final General Fund expenditure budget totaled $27,207,163, with actua l expenditures of $26,731,504.
Expenditures exceeded revenues by $855,613.
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
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, 2023, amount to $183,641,397. This net investment in capita l assets includes land, intangible asset, buildings and improvements, machinery and equipment, and infrastructure.
2023 2022 2023 2022 2023 2022
Land 14,753,193$ 14,753,193$ 3,291,818$ 3,291,818$ 18,045,011$ 18,045,011$ Intangible asset - - 59,069,152 33,620,000 59,069,152 33,620,000 Buildings and improvements 20,305,583 21,385,563 3,007,942 3,166,550 23,313,525 24,552,113 Machinery and equipment 7,535,833 6,377,354 1,066,315 1,019,138 8,602,148 7,396,492 Infrastructure 39,339,822 39,062,782 35,271,739 30,998,441 74,611,561 70,061,223 Total 81,934,431$ 81,578,892$ 101,706,966$ 72,095,947$ 183,641,397$ 153,674,839$ Governmental Activities Bus iness -type Activities Totals
Major capital asset events during the year included: the purcha se of machinery, equipment, water infrastructure, 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 53 and 54 for significant accounting policies and Note 5 on pages 65 and 66 for other capital asset information.
Economic Outlook
As of late 2025, the national economy shows signs of stabilizin g after multiple years of inflationary pressure. Inflation has gradually eased from peaks above 8%, a nd the Federal Reserve’s interest rate policy continues to weigh on borrowing costs and consumer spending. National unemployment has held in the low 4% range, but the recovery has been uneven across regions and sectors.
Ceres continues to face signifi cant economic pressures. Accord ing to the most recent data from the Employment Development Department, Ceres unemployment rate was 8.1% as of September 2025, one of the highest among cities in Stanislaus County. Stanislaus County’s overall unemployment rate hovers around 7.0% and California’s statewide unemployment is approximately 5.8%. Local employment gains in agriculture, warehousing, and retail have been modest and inconsistent, and wage growth has struggled to keep pace with inflation. Pressures remain from rising cost of living, housing, and energy, factors that constrain household discretionary income and slow consumer demand. On the revenue front, sales tax trends have shown only moderate gains in many jurisdictions across the county. For Ceres, the challenge is that many discretionary purchases are sensitive to economic stress, and the city’s sales tax base may underperform under these conditions.
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
Management’s Discussion and Analysis, Continued
17 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Economic Outlook, Continued
Ceres must also contend with structural stresses on its revenue streams. In California overall, cannabis tax revenue remains under press ure. In 2025, cannabis retailer tax receipts fell, reflecting declining volumes across the sector. In Stanislaus County, projected can nabis industry fee revenue is down roughly 56% from three years ago. For Ceres, this means less u pside from cannabis related revenues than has been anticipated in prior years. At the same time, the expiration of American Rescue Plan Act (ARPA) funding removes a criti cal buffer many municipalities us ed to balance budget gaps in recent years. Coupled with inflationary cost escalations the city is facing a persistent general fund deficit that will require ongoing monitoring and adjustments. In response t o these pressures, Ceres aims to take a proactive approach by using cons ervative revenue projections, e nhancing reserves when possible, considering structural changes li ke service prioritization, cos t management, and fee adjustments, and tracking economic indicators to make timely adjustments as circumstances change.
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 f inancial statements, contact Shannon Esenwein, Finance Director, 2220 Magnolia, Ceres, CA 95307, or visit the City’s web page at www.ceres.gov.
ITEM 13
This page intentionally left blank.
18 ITEM 13
BASIC FINANCIAL STATEMENTS
19 ITEM 13
This page intentionally left blank.
20 ITEM 13
City of Ceres, California
Statement of Net Position
June 30, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 38,789,026 $ 53,550,603 $ 92,339,629 $ Cash and investments with trustee/fiscal agent - 37 37 Receivables:
Accounts receivable 5,804,779 1,460,686 7,265,465 Prepaid items 17,963 - 17,963 Inventory 1,181 - 1,181 Internal balances (1,894,966) 1,894,966 - Total current assets 42,717,983 56,906,292 99,624,275 Noncurrent assets:
Advances to fiduciary activities 531,494 - 531,494 Loans receivable 6,227,535 - 6,227,535 Intangible assets - 59,069,152 59,069,152 Capital assets:
Nondepreciable 14,753,193 28,740,970 43,494,163 Depreciable 67,181,238 13,896,844 81,078,082 Total noncurrent assets 88,693,460 101,706,966 190,400,426 Total assets 131,411,443 158,613,258 290,024,701
DEFERRED OUTFLOWS OF RESOURCES
Pension Plan 18,653,573 2,962,695 21,616,268 Total deferred outflows of resources 18,653,573 2,962,695 21,616,268 Total assets and deferred outflows 150,065,016 161,575,953 311,640,969
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 2,206,591 7,038,186 9,244,777 Deposits payable 2,880,375 272,320 3,152,695 Unearned revenue 701,027 104,220 805,247 Interest payable - 28,994 28,994 Due within one year 116,347 444,000 560,347 Total current liabilities 5,904,340 7,887,720 13,792,060 Noncurrent liabilities:
Long-term liabilities:
Compensated absences 1,462,518 316,178 1,778,696 Due after one year - 7,908,000 7,908,000 Liability for claims 1,557,271 - 1,557,271 Net pension liability 39,141,911 6,125,272 45,267,183 Total noncurrent liabilities 42,161,700 14,349,450 56,511,150 Total liabilities 48,066,040 22,237,170 70,303,210
DEFERRED INFLOWS OF RESOURCES
Pension Plan 4,577,136 1,033,142 5,610,278 Total liabilities and deferred inflows of resources 52,643,176 23,270,312 75,913,488
NET POSITION
Net investment in capital assets 81,818,084 109,614,966 191,433,050 Restricted 12,026,765 - 12,026,765 Unrestricted 3,576,991 28,690,675 32,267,666 Total net position 97,421,840 138,305,641 235,727,481 Total liabilities, deferred inflows, and net position 150,065,016$ 161,575,953 $ 311,640,969 $ The accompanying notes are an integral part of these basic financial statements. 21 ITEM 13
City of Ceres, California
Statement of Activities
For the year ended June 30, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:
Governmental activities:
General government 6,083,262$ 378,467 $ 5,949,214 $ - $ Public safety 27,330,653 879,174 6,272,589 -
Engineering and Transportation 167,039 444,793 20,690 777,794 Public works 3,483,044 1,608,949 1,623,158 4,590,846 Community services 3,733,912 1,864,614 488,365 - Economic development 226,096 - - - Interest and fiscal charges 6,041 - - - Total governmental activities 41,030,047 5,175,997 14,354,016 5,368,640 Business-type activities:
Water 8,495,569 17,399,024 - 43,723,782 Sewer 9,858,254 10,837,800 - - STANCOG 3,644 - - - Total business-type activities 18,357,467 28,236,824 - 43,723,782 Total primary government 59,387,514$ 33,412,821$ 14,354,016$ 49,092,422$ 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
Other general revenues
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position:
Beginning of year
Net position - Ending
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 22 ITEM 13
Governmental Business-Type
Activities Activities Totals
244,419$ -$ 244,419$ (20,178,890) - (20,178,890) 1,076,238 - 1,076,238 4,339,909 - 4,339,909 (1,380,933) - (1,380,933) (226,096) - (226,096) (6,041) - (6,041) (16,131,394) - (16,131,394) - 52,627,237 52,627,237 - 979,546 979,546 - (3,644) (3,644) - 53,603,139 53,603,139 (16,131,394) 53,603,139 37,471,745
4,054,327 - 4,054,327
8,130,402 - 8,130,402
1,523,199 - 1,523,199
3,053,996 - 3,053,996
4,570,402 - 4,570,402
504,482 237,841 742,323
32,767 2,867,253 2,900,020
21,869,575 3,105,094 24,974,669
(304,000) 304,000 -
21,565,575 3,409,094 24,974,669
5,434,181 57,012,233 62,446,414
91,987,659 81,293,408 173,281,067
97,421,840$ 138,305,641$ 235,727,481$
Net (Expense) Revenue and
Changes in Net Position
23 ITEM 13
This page intentionally left blank.
24 ITEM 13
Fund
Governmental Funds:
General
Measure H Special Revenue
Community Center Special Revenue
Home Program Grants Special Revenue 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.
MAJOR FUNDS
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.
To account for operational revenues and expenses of Ceres Community Center.
25 ITEM 13
City of Ceres, California
Balance Sheet
Governmental Funds
June 30, 2023
Community Home
General Measure H Center Program Grants
Fund Special Revenue Special Revenue Special Revenue
ASSETS
Cash and investments 7,101,275$ 512,019 $ - $ 1,117,419$ Receivables:
Taxes - 827,331 - - Interest 13,159 720 - - Intergovernmental - - - - Loans receivable - - - 5,431,530 Other receivable 3,197,607 - 317 - Due from other funds 3,423,968 - - - Advances to Former Redevelopment Agencies Private
Purpose Trust 531,494 -
Prepaid items 17,963 - - - Inventory 1,181 - - - Total assets 14,286,647$ 1,340,070 $ 317 $ 6,548,949$
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 1,537,504$ 8,387$ 39,734$ -$ Deposits payable 2,783,909 - 96,466 - Due to other funds - - 2,006,594 - Unearned revenue 701,027 - - - Advances from other funds 1,894,966 - - - Total liabilities 6,917,406 8,387 2,142,794 - Deferred inflows: Unavailable revenue - - - 5,431,531 Total liabilities and deferred inflows 6,917,406 8,387 2,142,794 5,431,531 Fund balances:
Nonspendable:
Prepaid items 17,963 - - - Restricted reported in:
Special revenue funds - 1,331,683 - 1,117,418 Committed - - - - Assigned reported in:
Special revenue funds - - - - Unassigned (deficit), reported in:
General fund 7,351,278 - - - Special revenue funds - - (2,142,477) - Total fund balances 7,369,241 1,331,683 (2,142,477) 1,117,418 Total liabilities and fund balances 14,286,647$ 1,340,070$ 317$ 6,548,949$ Major Funds
The accompanying notes are an integral part of these basic financial statements. 26 ITEM 13
Nonmajor
Governmental
Funds Totals
24,449,686$ 33,180,399$
638,867 1,466,198
13,431 27,310
921,361 921,361
796,005 6,227,535
9,663 3,207,587
- 3,423,968
- 531,494
- 17,963
1,181
26,829,013$ 49,004,996$
303,198$ 1,888,823$
- 2,880,375
1,417,139 3,423,733
- 701,027
- 1,894,966
1,720,337 10,788,924
796,004 6,227,535
2,516,341 17,016,459
- 17,963
9,577,664 12,026,765
12,690 12,690
15,867,092 15,867,092
- 7,351,278
(1,144,774) (3,287,251)
24,312,672 31,988,537
26,829,013$ 49,004,996$
27 ITEM 13
City of Ceres, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2023
Total fund balances - total governmental funds 31,988,537$ Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet. 77,132,325
Compensated absences (1,352,717)
Due after one year (116,347)
Net pension obligation (39,141,911) (40,610,975)
6,227,535
Pension obligatons result in deferred outflows and inflows of resource s
associated with actuarial value of contributions, assets, and liabilities Deferred outflows 18,653,573
Deferred inflows (4,577,136) 14,076,437
Current assets 5,790,950
Noncurrent assets 4,802,106
Accounts payable and accrued liabilities (318,003)
Long-term liabilities (1,667,072) 8,607,981
Net position of governmental activities 97,421,840$
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:
28 ITEM 13
City of Ceres, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2023
Governmental Internal
Funds Service Changes Statement of
Balance Sheet Reclassifications Funds in GAAP Net Position ASSETS
Current assets:
Cash and investments 33,180,399$ -$ 5,608,627$ -$ 38,789,026$ Receivables:
Taxes 1,466,198 - - - 1,466,198 Interest 27,310 - - - 27,310 Intergovernmental 921,361 - - - 921,361 Loans receivable 6,227,535 (6,227,535) - - - Other receivable 3,207,587 - 182,323 - 3,389,910 Due from other funds 3,423,968 (3,423,968) - - - Advances to Former Redevelopment Agencies Private
Purpose Trust 531,494 (531,494)
Prepaid items 17,963 - - - 17,963 Inventory 1,181 - - - 1,181 Internal balances - (1,894,966) - - (1,894,966) Total current assets 49,004,996 (12,077,963) 5,790,950 - 42,717,983 Noncurrent assets:
Advances to(from) fiduciary activities - 531,494 - - 531,494 Loans/Notes receivable - 6,227,535 - - 6,227,535 Capital assets, net - - 4,802,106 77,132,325 81,934,431 Total noncurrent assets - 6,759,029 4,802,106 77,132,325 88,693,460
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows: Pension Plan - - - 18,653,573 18,653,573 Total assets and deferred outflows of resources 49,004,996$ (5,318,934)$ 10,593,056$ 95,785,898$ 150,065,016$
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,888,823$ -$ 317,768$ -$ 2,206,591$ Deposits payable 2,880,375 - - - 2,880,375 Due to other funds 3,423,733 (3,423,968) 235 - - Advances from other funds 1,894,966 (1,894,966) - - - Unavailable revenue 701,027 - - - 701,027 Due within one year - - - 116,347 116,347 Total current liabilities 10,788,924 (5,318,934) 318,003 116,347 5,904,340 Noncurrent liabilities:
Long-term debt:
Compensated absences - - 109,801 1,352,717 1,462,518 Liability for claims - - 1,557,271 - 1,557,271 Net pension obligation - - - 39,141,911 39,141,911 Total noncurrent liabilities - - 1,667,072 40,494,628 42,161,700 Total liabilities 10,788,924 (5,318,934) 1,985,075 40,610,975 48,066,040 Deferred inflows: Grants 6,227,535 - - (6,227,535) - Deferred inflows: Pension plan - - - 4,577,136 4,577,136 Total liabilities and deferred inflows 17,016,459 (5,318,934) 1,985,075 38,960,576 52,643,176
FUND BALANCES/NET POSITION
Fund balances:
Nonspendable 17,963 (17,963) - - - Restricted 12,026,765 (12,026,765) - - - Committed 12,690 (12,690) - - - Assigned 15,867,092 (15,867,092) - - - Unassigned 4,064,027 (4,064,027) - - - Net position:
Net investment in capital assets - - 4,802,106 77,015,978 81,818,084 Restricted - - - 12,026,765 12,026,765 Unrestricted - 31,988,537 3,805,875 (32,217,421) 3,576,991 Total fund balances/ net position 31,988,537 - 8,607,981 56,825,322 97,421,840 Total liabilities, deferred inflows, and net position 49,004,996$ (5,318,934)$ 10,593,056$ 95,785,898$ 150,065,016$ The accompanying notes are an integral part of these basic financial statements. 29 ITEM 13
City of Ceres, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Community Home
General Measure H Center Program Grants
Fund Special Revenue Special Revenue Special Revenue
REVENUES:
Property and other taxes 21,258,883$ 4,814,659$ -$ -$ Licenses and permits 980,219 - - - Fines, forfeitures and penalties 261,601 - - - Charges for services 1,821,785 - - - Intergovernmental 1,343,680 - - 59,341 Use of money and property 169,682 7,332 260,722 - Other revenues 40,041 125 315 5,974 Total revenues 25,875,891 4,822,116 261,037 65,315 EXPENDITURES:
Current:
General government 3,106,299 - - - Public safety 20,197,373 5,869,491 - - Engineering and Transportation 85,028 - - - Public works 402,217 - - - Community services 2,885,011 - 382,028 - Economic development 55,576 - 71,264 Capital outlay - 76,766 - Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 26,731,504 5,946,257 382,028 71,264
REVENUES OVER (UNDER)
EXPENDITURES (855,613) (1,124,141) (120,991) (5,949) OTHER FINANCING SOURCES (USES):
Proceeds from sales of assets 705 - - - Transfers in 892,886 - - - Transfers out (311,878) (152,000) - - Total other financing sources (uses) 581,713 (152,000) - - Net change in fund balances (273,900) (1,276,141) (120,991) (5,949) FUND BALANCES:
Beginning of yea
r 7,643,141 2,607,824 (2,021,486) 1,123,367 End of year 7,369,241$ 1,331,683 $ (2,142,477) $ 1,117,418 $ The accompanying notes are an integral part of these basic financial statements.
Major Funds
30 ITEM 13
Other
Governmental
Funds Totals
1,369,541$ 27,443,083$
- 980,219
53,022 314,623
673,608 2,495,393
13,577,419 14,980,440
66,746 504,482
2,828 49,283
15,743,164 46,767,523
1,108,165 4,214,464
887,531 26,954,395
82,011 167,039
1,560,856 1,963,073
437,551 3,704,590
27,790 154,630
5,033,981 5,110,747
112,938 112,938
6,041 6,041
9,256,864 42,387,917
6,486,300 4,379,606
- 705
5,371 898,257
(738,379) (1,202,257)
(733,008) (303,295)
5,753,292 4,076,311
18,559,380 27,912,226
24,312,672$ 31,988,537$
31 ITEM 13
City of Ceres, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2023
Capital
Debt/ Asset Internal Government-
Fund Based Compensated Deferred (Additions)/ Pension Service wide Functions/Programs Totals Absences Revenue Depreciation Retirements Plan Funds Totals Governmental activities:
General government 4,214,464 $ (222,127) $ 34,721 $ 1,919,160$ -$ 137,044 6,083,262$ Public safety 26,954,395 - - 376,258 - - - 27,330,653 Engineering and Transportation 167,039 - - - - - - 167,039 Public works 1,963,073 - - 3,714,440 (1,355,438) - (839,031) 3,483,044 Community services 3,704,590 - - 29,322 - - - 3,733,912 Economic development 154,630 - - 71,466 - - - 226,096 Capital outlay 5,110,747 - - - (5,110,747) - - - Debt service/Interest 118,979 (112,938) - - - - - 6,041 Total governmental activities 42,387,917$ (335,065)$ 34,721 $ 6,110,646$ (6,466,185)$ 137,044$ (839,031)$ 41,030,047$ The accompanying notes are an integral part of these basic financial statements. 32 ITEM 13
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, 2023
Net change in fund balances - total governmental funds 4,076,311$ Capital asset purchases capitalized 6,466,185$
Depreciation expense (6,110,646) 355,539
112,938
Change in compensated absences 222,127
Pension expense (137,044) 85,083
Deferred inflows (34,721)
839,031
Change in net position of governmental activities 5,434,181$ 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.
33 ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes 20,842,188$ 20,842,188 21,258,883$ 416,695$ Licenses and permits 616,900 616,900 980,219 363,319 Fines, forfeitures and penalties 295,000 295,000 261,601 (33,399) Charges for services 1,965,950 1,965,950 1,821,785 (144,165) Intergovernmental 1,285,881 1,285,881 1,343,680 57,799 Use of money and property 185,600 185,600 169,682 (15,918) Other revenues 45,000 45,000 40,041 (4,959) Total revenues 25,236,519 25,236,519 25,875,891 639,372 EXPENDITURES:
Current:
General government 3,016,729 3,124,727 3,106,299 18,428 Public safety 20,284,768 20,340,365 20,197,373 142,992 Engineering and Transportation 121,544 121,844 85,028 36,816 Public works 462,444 462,444 402,217 60,227 Community services 3,024,231 3,145,121 2,885,011 260,110 Economic development - 2,500 55,576 (53,076) Capital outlay - 10,162 - 10,162 Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 26,909,716 27,207,163 26,731,504 475,659
REVENUES OVER (UNDER)
EXPENDITURES (1,673,197) (1,970,644) (855,613) 1,115,031 OTHER FINANCING SOURCES (USES):
Proceeds from sales of assets 1,000 1,000 705 (295) Transfers in 1,986,564 1,996,564 892,886 (1,103,678) Transfers out (318,221) (318,221) (311,878) 6,343 Total other financing sources (uses) 1,669,343 1,679,343 581,713 (1,097,630) Net change in fund balances (3,854) (291,301) (273,900) 17,401 FUND BALANCES:
Beginning of year 7,643,141 7,643,141 7,643,141 - End of year 7,639,287$ 7,351,840 $ 7,369,241 $ 17,401 $ The accompanying notes are an integral part of these basic financial statements.
General Fund
Budgeted Amounts
34 ITEM 13
Variance w/Final
Positive
Original Final Actual (Negative)
5,311,923$ 5,311,923 $ 4,814,659 $ (497,264)$
- - - - - - - - - - - - - - - - 6,300 6,300 7,332 1,032
- - 125 125 5,318,223 5,318,223 4,822,116 (496,107)
- - - - 6,420,360 6,445,360 5,869,491 575,869
- - - - - - - - - - - - - - - - 80,000 80,000 76,766 3,234
- - - - - - - - 6,500,360 6,525,360 5,946,257 579,103
(1,182,137) (1,207,137) (1,124,141) 82,996
- - - - - - - - (152,000) (152,000) (152,000) -
(152,000) (152,000) (152,000) -
(1,334,137) (1,359,137) (1,276,141) 82,996
2,607,824 2,607,824 2,607,824 -
1,273,687$ 1,248,687$ 1,331,683$ 82,996$
Measure H
Budgeted Amounts
(continued)
35 ITEM 13
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, 2023
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 - Use of money and property 170,000 170,000 260,722 90,722 Other revenues - - 315 315 Total revenues 170,000 170,000 261,037 91,037 EXPENDITURES:
Current:
General government - - - - Public safety - - - - Engineering and Transportation - - - - Public works - - - - Community services 426,573 426,573 382,028 44,545 Economic development - - - - Capital outlay - - - - Total expenditures 426,573 426,573 382,028 44,545
REVENUES OVER (UNDER)
EXPENDITURES (256,573) (256,573) (120,991) 135,582 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (256,573) (256,573) (120,991) 135,582 FUND BALANCES (DEFICIT):
Beginning of year (2,021,486) (2,021,486) (2,021,486) - End of year (2,278,059)$ (2,278,059) $ (2,142,477) $ 135,582 $ Budgeted Amounts
Community Center
The accompanying notes are an integral part of these basic financial statements. 36 ITEM 13
Variance w/Final
Positive
Original Final Actual (Negative)
- $ - $ - $ -$ - - - - - - - - - - - - - - 59,341 59,341 - - - - - - 5,974 5,974 - - 65,315 65,315 - - - - - - - - - - - - - - - - - - - - 109,640 109,640 71,264 38,376
- - - - 109,640 109,640 71,264 38,376
(109,640) (109,640) (5,949) 103,691
- - - - - - - - - - - - (109,640) (109,640) (5,949) 103,691
1,123,367 1,123,367 1,123,367 -
1,013,727 $ 1,013,727 $ 1,117,418 $ 103,691$
(concluded)
Home Program Grants Special Revenue Fund
Budgeted Amounts
37 ITEM 13
This page intentionally left blank.
38 ITEM 13
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
39 ITEM 13
City of Ceres, California
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities -
Internal
Service Funds
Water Sewer STANCOG Totals Totals
Current assets:
Cash and investments 30,716,846$ 22,280,158$ 553,599$ 53,550,603$ 5,608,627$ Cash and investments with trustee/fiscal agent 37 - - 37 - Accounts receivable (net of uncollectible) 736,121 677,469 - 1,413,590 182,323 Interest receivable 27,005 19,594 497 47,096 - Total current assets 31,480,009 22,977,221 554,096 55,011,326 5,790,950 Non-current assets:
Intangible assets 59,069,152 - - 59,069,152 - Property, plant and equipment 44,161,214 30,094,309 - 74,255,523 10,680,183 Less accumulated depreciation (15,238,055) (16,379,654) - (31,617,709) (5,878,077) Property, plant, and equipment, net 87,992,311 13,714,655 - 101,706,966 4,802,106 Other assets:
Advances to other funds - 1,894,966 - 1,894,966 - Total non-current assets 87,992,311 15,609,621 - 103,601,932 4,802,106 Total assets 119,472,320 38,586,842 554,096 158,613,258 10,593,056 Deferred outflows: Pension Plan 1,510,035 1,436,868 15,792 2,962,695 - Total assets and deferred outflows 120,982,355$ 40,023,710 $ 569,888 $ 161,575,953$ 10,593,056 $
LIABILITIES AND NET POSITION
Current liabilities:
Accounts payable and accrued liabilities 6,517,702 $ 520,484 $ - $ 7,038,186$ 317,768 $ Deposits payable 272,320 - - 272,320 - Unearned revenue 104,220 - - 104,220 - Interest payable 12,412 16,582 - 28,994 - Due to other funds - - - - 235 Current portion of long-term debt 163,000 281,000 - 444,000 - Total current liabilities 7,069,654 818,066 - 7,887,720 318,003 Long-term liabilities:
Compensated absences 160,734 155,444 - 316,178 109,801 Due after one year 2,893,000 5,015,000 - 7,908,000 - Liability for claims - - - - 1,557,271 Net pension liability 3,025,822 3,043,669 55,781 6,125,272 - Total long-term liabilities 6,079,556 8,214,113 55,781 14,349,450 1,667,072 Total liabilities 13,149,210 9,032,179 55,781 22,237,170 1,985,075 Deferred inflows: Pension Plan 467,689 549,722 15,731 1,033,142 - Total liabilities and deferred inflows 13,616,899 9,581,901 71,512 23,270,312 1,985,075 Net Position:
Net investment in capital assets 90,885,311 18,729,655 - 109,614,966 4,802,106 Unrestricted 16,480,145 11,712,154 498,376 28,690,675 3,805,875 Total net position 107,365,456 30,441,809 498,376 138,305,641 8,607,981 Total liabilities, deferred inflows, and net
position 120,982,355$ 40,023,710 $ 569,888 $ 161,575,953$ 10,593,056 $ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these basic financial statements. 40 ITEM 13
City of Ceres, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities -
Internal
Service Funds
Water Sewer STANCOG Totals Totals
OPERATING REVENUES:
Charges for services 17,081,000 $ 10,678,521 $ - $ 27,759,521$ - $ Interdepartmental charges - - - - 8,517,377 Other operating 318,024 159,279 - 477,303 116,344 Total operating revenues 17,399,024 10,837,800 - 28,236,824 8,633,721 OPERATING EXPENSES:
Salaries and benefits 2,807,403 2,675,788 - 5,483,191 1,918,237 Contractual and other services 1,035,806 533,476 3,500 1,572,782 762,896 Materials and supplies 1,589,619 271,163 144 1,860,926 1,025,227 Depreciation and amortization 1,287,705 881,544 - 2,169,249 727,146 Other operating costs 1,670,069 5,314,209 - 6,984,278 2,562,227 Total operating expenses 8,390,602 9,676,180 3,644 18,070,426 6,995,733 OPERATING INCOME (LOSS) 9,008,422 1,161,620 (3,644) 10,166,398 1,637,988 NONOPERATING REVENUES (EXPENSES):
Investment income 131,625 103,573 2,643 237,841 - Gain (Loss) on sale of assets - - - - 167,520 Settlement revenue 3,000,000 - - 3,000,000 - Interest and debt service expenses (104,967) (182,074) - (287,041) - Other nonoperating expenses (132,747) - - (132,747) - Capital contributions 43,246,132 477,650 - 43,723,782 - Total non-operating revenues 46,140,043 399,149 2,643 46,541,835 167,520
NET INCOME (LOSS) BEFORE
TRANSFERS 55,148,465 1,560,769 (1,001) 56,708,233 1,805,508 Transfers in - 304,000 - 304,000 - Transfers out - - - - - Total Transfers - 304,000 - 304,000 - CHANGE IN NET POSITION 55,148,465 1,864,769 (1,001) 57,012,233 1,805,508 NET POSITION:
Beginning of year 52,216,991 28,577,040 499,377 81,293,408 6,802,473 End of year 107,365,456$ 30,441,809 $ 498,376 $ 138,305,641$ 8,607,981 $ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these basic financial statements. 41 ITEM 13
City of Ceres, California .
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities -
Internal
Service Funds
Water Sewer STANCOG Totals Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from interfund services provided - $ - $ - $ - $ 8,425,613$ Cash receipts from customers 17,247,626 10,852,063 - 28,099,689 - Cash payments to suppliers for goods and services (3,919,540) (6,144,577) (3,644) (10,067,761) (1,701,199) Cash payments to employees for services (2,814,946) (2,669,685) - (5,484,631) (1,975,064) Cash receipts (payments) for loss claims - - - - (2,329,947) Net cash used by operating activities 10,513,140 2,037,801 (3,644) 12,547,297 2,419,403
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Other income received 2,867,253 - - 2,867,253 - Transfers received (paid) - 543,952 - 543,952 (531,805) Net cash provided by noncapital financing
activities 2,867,253 543,952 - 3,411,205 (531,805)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
(Acquisition) Disposal and construction of capital assets (25,829,653) (461,883) (26,291,536) (1,693,623) Proceeds from sale of capital assets - - - - 167,520 Capital contributions 43,246,132 477,650 - 43,723,782 - Payments on long-term debt (20,332,600) (272,000) - (20,604,600) - Interest paid on capital debt (104,967) (182,074) - (287,041) - Net cash (used) by capital and related financing
activities (3,021,088) (438,307) - (3,459,395) (1,526,103) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income received 107,857 85,837 2,199 195,893 - Net cash provided by investing activities 107,857 85,837 2,199 195,893 - Net increase (decrease) in cash and cash
equivalents 10,467,162 2,229,283 (1,445) 12,695,000 361,495 CASH AND CASH EQUIVALENTS:
Beginning of year 20,249,721 20,050,875 555,044 40,855,640 5,247,132 End of year 30,716,883$ 22,280,158$ 553,599$ 53,550,640$ 5,608,627$ Presentation in Statement of Net Position:
Cash and investments 30,716,846$ 22,280,158$ 553,599$ 53,550,603$ 5,608,627$ Cash and investments with trustee/fiscal agent 37 - - 37 - Total cash and investments 30,716,883$ 22,280,158$ 553,599$ 53,550,640$ 5,608,627$ Reconciliation of income (loss) from operations to
net cash used by operating activities:
Operating income (loss) 9,008,422$ 1,161,620$ (3,644)$ 10,166,398$ 1,637,988$ Adjustments to reconcile operating income (loss)
to net cash used in operating activities:
Depreciation and amortization 1,287,705 881,544 - 2,169,249 727,146 Pension expense 10,769 9,889 - 20,658 (Increase) decrease in current assets:
Accounts receivable 138,124 14,263 - 152,387 (181,916) Prepaid items - -
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities 375,954 (25,729) - 350,225 109,090 Deposits payable (252,029) - - (252,029) - Unearned revenue
(37,493) - - (37,493) - Compensated absences (18,312) (3,786) - (22,098) (25,379) Increase (decrease) in claims liability - - - - 152,474 Net cash used by operating activities 10,513,140$ 2,037,801$ (3,644)$ 12,547,297$ 2,419,403$ 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, 2023.
The accompanying notes are an integral part of these basic financial statements. 42 ITEM 13
City of Ceres, California
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Successor
Agencies Westpointe
Private Assessmen t
Purpose District
Trust Debt Service
Funds Custodial Fun d
ASSETS
Current assets:
Cash and investments 5,131,575$ 296,321 $
Cash and investments with trustee/fiscal agent 2,061,500 - Interest receivable 4,481 266
Total current assets 7,197,556 296,587
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 21,912,074 296,587
Deferred outflows: Pension plan 169,368 - Total assets and deferred outflows 22,081,442$ 296,587 $
LIABILITIES AND NET POSITION
Current liabilities:
Accounts payable and accrued liabilities 883 $ - $ Interest payable 8,591 -
Compensated absences - current 13,972 - Current portion of long term debt 1,759,687 - Total current liabilities 1,783,133 -
Long-term liabilities:
Advances from other government agencies 266,702 - Advances from Governmental Activities 531,494 - Due after one year 25,749,891 -
Net pension obligation 324,490 -
Total long-term liabilities 26,872,577 -
Total liabilities 28,655,710 -
Deferred inflows: Pension plan 51,306 - Total liabilities and deferred inflows 28,707,016 - Net Position (Deficit):
Restricted for:
Redevelopment Dissolution (6,625,574) -
Individuals, organizations, and other governments - 296,587 Total liabilities, deferred inflows, and net position 22,081,442$ 296,587$ The accompanying notes are an integral part of these basic financial statements. 43 ITEM 13
City of Ceres, California
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
Successor
Agencies Westpointe
Private Assessment
Purpose District
Trust Debt Service
Funds Custodial Fund
ADDITIONS:
Property taxes 2,763,109 $ - $
Investment earnings 22,428 1,414
Other revenue 28,869 -
Total additions 2,814,406 1,414
DEDUCTIONS:
General and administrative 28,941 -
Salaries and benefits 215,521 -
Contractual and other services 79,935 - Materials and supplies 3 4,000 Interest and debt service expenses 742,584 - Total deductions 1,066,984 4,000
CHANGE IN FIDUCIARY NET ASSETS 1,747,422 (2,586) NET POSITION (DEFICIT):
Beginning of year (8,372,996) 299,173
End of year (6,625,574)$ 296,587$
The accompanying notes are an integral part of these basic financial statements. 44 ITEM 13
45 NOTES TO BASIC FINANCIAL STATEMENTS
ITEM 13
City of Ceres, California
Basic Financial Statements
For the year ended June 30, 2023
Index to Notes to Basic Financial Statements
46 Page
Note 1 – Summary of Significant Accounting Policies ................................................................... 47 Financial Reporting Entity ............................................................................................................. 47 Basis of Accounting and Measurement Focus ............................................................................... 48 Assets, Liabilities, and Equity ....................................................................................................... 52 Revenues, Expenditures, and Expenses ......................................................................................... 58 Budgetary Accounting ................................................................................................................... 59
Note 2 – Cash and Investments ......................................................................................................... 60
Note 3 – Accounts Receivable ........................................................................................................... 63
Note 4 – Loans and Notes Receivable .............................................................................................. 63
Note 5 – Capital Assets ...................................................................................................................... 65
Note 6 – Accounts Payable and Accrued Liabilities ....................................................................... 67
Note 7 – Special Assessment Districts .............................................................................................. 67
Note 8 – Long-term Liabilities .......................................................................................................... 68
Note 9 – Net Position/ Fund Balances .............................................................................................. 70
Note 10 – Interfund Transactions .................................................................................................... 74
Note 11 – Risk Management ............................................................................................................. 77
Note 12 – Pension Plan ...................................................................................................................... 78
Note 13 – Abandoned Vehicle Abatement Program ....................................................................... 84
Note 14 – Successor Agency Trust for Assets of Former Redevelopment Agency ...................... 85
Note 15 – Commitments and Contingencies .................................................................................... 91
Note 16 – New Accounting Pronouncements ................................................................................... 92
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements
For the year ended June 30, 2023
47 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
48 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
49 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.
• Measure H Special Revenue Fund – This fund is used to account for a 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.
• Community Center Special Revenue Fund – This fund is used to account for operational revenues and expenses of Ceres Community Center.
• 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.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
50 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
51 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
52 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.
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.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
53 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
54 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
55 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 max imum 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
56 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
57 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
58 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.”
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.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
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, 2023, 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, 2023, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.
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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
60 2. CASH AND INVESTMENTS
At June 30, 2023, the City’s pooled cash and investments, classified by maturity, consisted of the following stated at fair market value:
Fair
< 1 1 to 3 3 to 5 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value:
Cash in bank -$ -$ -$ 68,589,064$ 68,589,064$ Petty cash - - - 4,250 4,250 Total pooled items - - - 68,593,314 68,593,314 Pooled investments, at fair value
Interest obligations
Par Rate
$3,208,000 0.55 - 4.95% Domestic Time Deposits 1,234,000 1,481,000 493,000 - 3,208,000 $17,000,000 0.5 - 4.87% US Government Agency Securities - 8,010,488 8,978,000 - 16,988,488 Municipal Investor Account 6,436,639 - - - 6,436,639 State of California Local Agency Investment Fund 4,602,621 - - - 4,602,621 Total pooled investments - interest obligations 12,273,260 9,491,488 9,471,000 - 31,235,748 Total cash equivalents and investments pooled 12,273,260$ 9,491,488$ 9,471,000 $ 68,593,314$ 99,829,062$ Amounts reported in:
Government activities 38,789,026$
Business-type activities:
Unrestricted cash and investments 53,550,603
Cash and investments with trustee / fiscal agent 37
Fiduciary activities:
Unrestricted cash and investments 5,427,896
Cash and investments with trustee/fiscal agent 2,061,500 Total 99,829,062$
Maturities (in years)
Investment Type Fair Value Maturity (in years)
Domestic Time Deposits 3,208,000$ 1.51
US Governments Agency Securities 16,988,488 2.62
Municipal Investor Account 6,436,639 0.000
Local Agency Investment Fund 4,602,621 0.000
Total fair value 31,235,748$
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 23, 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
61 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, 2023, 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 matu rity 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 2.78% 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, 2023, the carrying amount of the City’s deposits was $68,589,094 and the balance in financial institutions was $67,279,428. Of the balance in financial institutions, $500,000 was covered by federal depository insurance and $66,779,428 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, 2023, 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
62 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, 2023, was $25.67 billion of which the City had a balance of $4,602,621.
LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2023 has a portfolio with market valuation including accrued interest of $177 billion. 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 th e 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.
3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2023:
Governmental Business-type Fiduciary
Activities Activities Activities Total
Current:
Accounts - $ 1,413,590$ - $ 1,413,590$ Taxes 1,466,198 - - 1,466,198 Interest 27,310 47,096 4,747 79,153 Intergovernmental 921,361 - - 921,361 Other receivable 3,389,910 - - 3,389,910 Total current 5,804,779 $ 1,460,686 $ 4,747 $ 7,270,212$
These amounts resulted in the following concentrations in receivables:
Other Governments 32.84%
Individuals/Businesses 19.44%
Financial 1.09%
Other 46.63%
Amounts do not indicate a signifi cant concentration (greater th an 25%) with any single individual, business, or agency.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
63 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, 2023, consisted of the following:
Beginning Ending
Description July 1, 2022 Additions (Deletions) June 30, 2023 First-Time Homebuyer Loans 2,042,334$ -$ (32,026)$ 2,010,308$ Housing Rehabilitation Loans:
CDBG Loan 217,305 - (2,245) 215,060 Emergency Repair Loan 306,806 - (449) 306,357 Begin Home Grant 344,050 - - 344,050 Total Housing Rehabilitation Loans 960,776 - (2,694) 865,467 Whitmore Oaks 865,361 - - 865,361 Della Tiara 2,486,399 - - 2,486,399 Total loans receivable 6,632,071$ -$ (34,720)$ 6,227,535$
The following is a summary of the loans and notes receivable outstanding as of June 30, 2023:
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, 2023 were $2,010,308.
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, 2023 were $865,467.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
64 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, 2023 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, 2023 was $2,486,399.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
65 5. CAPITAL ASSETS
Capital asset activity for governmental activities for the year ended June 30, 2023, was as follows:
Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Governmental activities:
Nondepreciable assets:
Land 14,753,193$ -$ -$ 14,753,193$ Total nondepreciable assets 14,753,193 - - 14,753,193 Depreciable assets:
Buildings and improvements 41,233,806 413,278 - 41,647,084 Machinery & equipment 19,075,736 2,293,702 (286,037) 21,083,401 Infrastructure 107,551,424 3,674,412 - 111,225,836 Total depreciable assets 167,860,966 6,381,392 (286,037) 173,956,321 Total 182,614,159 6,381,392 (286,037) 188,709,514 Accumulated depreciation:
Buildings and improvements (19,848,243) (1,493,258) - (21,341,501) Machinery & equipment (12,698,382) (1,220,016) 370,830 (13,547,568) Infrastructure (68,488,642) (3,397,372) - (71,886,014) Total accumulated depreciation (101,035,267) (6,110,646) 370,830 (106,775,083) Net depreciable assets 66,825,699 270,746 84,793 67,181,238 Total net capital assets 81,578,892$ 270,746$ 84,793$ 81,934,431$
Depreciation expense for capital assets was charged to functions as follows:
General government 1,919,160$
Public safety 376,258
Public works 3,714,440
Community services 29,322
Economic development 71,466
Total 6,110,646$
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
66 5. CAPITAL ASSETS, Continued
Capital asset activity for business-type activities for the year ended June 30, 2023, was as follows:
Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Business-type activities:
Nondepreciable assets:
Land 3,291,818 $ - $ - $ 3,291,818$ Intangible Asset 33,620,000 25,449,152 - 59,069,152 Total nondepreciable assets 36,911,818 25,449,152 - 62,360,970 Depreciable assets:
Buildings and improvements 9,510,944 133,772 - 9,644,716 Machinery & equipment 6,630,316 371,731 (150,064) 6,851,983 Infrastructure 48,535,851 5,931,156 - 54,467,007 Total depreciable assets 64,677,111 6,436,659 (150,064) 70,963,706 Total 101,588,929 31,885,811 (150,064) 133,324,676 Accumulated depreciation:
Buildings and improvements (6,344,394) (292,380) - (6,636,774) Machinery & equipment (5,611,178) (219,011) 44,521 (5,785,668) Infrastructure (17,537,410) (1,657,858) - (19,195,268) Total accumulated depreciation (27,555,294) (2,169,249) 44,521 (31,617,710) Net depreciable assets 30,727,044 4,267,410 (105,543) 39,345,996 Total net capital assets 34,018,862$ 29,716,562 $ (105,543) $ 101,706,966$
Depreciation expense for business-type activity capital assets was charged to functions as follows:
Water 1,287,705$
Sewer 881,544
Total 2,169,249$
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
67 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at June 30, 2023:
Governmental Business-type Fiduciary
Activities Activities Activities Total
Accounts payable 1,956,340 $ 7,038,186 $ 883 $ 8,995,409 $ Accrued payroll and related liabilities 250,251 - - 250,251 Total 2,206,591$ 7,038,186 $ 883 $ 9,245,660 $
These amounts resulted in the following concentrations in payables:
Vendors 97.3%
Employees 2.7%
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, 2023:
2002 - WestPointe Refunding Reassessment District – Original Issue $2,960,000
In fiscal year 2003, the City issu ed the WestPointe Refunding Reassessment District Bonds. Proceeds from the sale of the bonds was used to call and redeem all of t he outstanding principal amount of the bonds previously issued by the City for its Westpointe Improvem ent Assessment District and to pay certain costs of issuance of the bonds. The City is the collect ing and paying agent for the bonds issued by the WestPointe Assessment Dist r i c t ( D i s t r i c t ) , b u t h a s n o d irect or contingent liability or moral obligation for the payment of these bonds. Assets held by the City on behalf of the District are recorded in an agency fund. Accordingly, the assets and outstanding bond obligations of the District are not presented in the accompanying Basic Financial Statements. As of June 30, 2023, there is no outstanding balance of the Westpointe Refunding Reassessment District Bonds.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
68 8. LONG-TERM LIABILITIES
The following is a summary of changes in long-term debt for business-type activities for the year ended June 30, 2023:
Balance Balance Due Within
July 1, 2022 Additions Retirem ents June 30, 2023 One Year Governmental Activities:
Loan Payable 229,285$ -$ (112,938)$ 116,347$ 116,347$ Total governmental activities 229,285$ -$ (112,938)$ 116,347$ 116,347$ Business-type Activities:
2020 Water Refunding Bonds 3,210,000$ -$ (154,000)$ 3,056,000$ 163,000$ 2020 Water Revenue Bonds 20,280,000 - (20,280,000) - - Bond discount (101,400) - 101,400 - - 2020 Wastewater Refunding Bonds 5,568,000 - (272,000) 5,296,000 281,000 Total business-type activities 28,956,600$ -$ (20,604,600)$ 8,352,000$ 444,000$
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, 2023 was $116,347.
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 eco nomic 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, 2023 is $3,056,000.
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 Installment Purchase Agreement. On November 1, 2022, the outstanding bonds were redeemed in full at par, plus accrued interest to the date of redemption.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
69 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, 2023 is $5,296,000.
Future debt service at June 30, 2023, is as follows for all remaining debt except claims liabilities:
Year Ending
June 30,
Principal Interest Principal Interest
2024 163,000 $ 99,931 $ 281,000 $ 173,179 $ 2025 167,000 94,601 289,000 163,991 2026 171,000 89,140 297,000 154,540 2027 179,000 83,549 309,000 144,828 2028 182,000 38,848 317,000 134,724 2029-2033 1,007,000 294,692 1,748,000 510,938 2034-2038 1,187,000 118,734 2,055,000 205,879 203-2043 - - - - 2044-2048 - - - - 2049-2050 - - - - Total 3,056,000 $ 819,495$ 5,296,000 $ 1,488,079 $ Due within one year 163,000$ 99,931 $ 281,000 $ 173,179 $ Due after one year 2,893,000 719,564 5,015,000 1,314,900 Total 3,056,000 $ 819,495$ 5,296,000 $ 1,488,079 $ Business-type Activities
2020 Water
Refunding Bonds Refunding Bonds
2020 Wastewater
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
70 9. NET POSITION/ FUND BALANCES
Net Position
Governmental Business-type
Activities Activities Totals
Net investment in capital assets 81,818,084$ 109,614,966 $ 191,433,050 $ Restricted 12,026,765 - 12,026,765 Unrestricted 3,576,991 28,690,675 32,267,666 Total 97,421,840 $ 138,305,641 $ 235,727,481 $
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, 2023:
Nonspendable:
Prepaid items 17,963 $
Total nonspendable 17,963 $
Restricted for:
Measure H Income 1,331,683 $
Home Program 1,117,418
CDBG Programs 722,726
Storm Drain Benefit Districts 933,526
Eastgate Street Benefit District 106,652
BEGIN Grant Program 470,634
Program Income BEGIN 230,200
State G as Tax -
SLESF 138,929
Dept of Conservation G rant 51,995
Fire Hydrant Benefit District 129,139
Measure L 4,929,863
Road Maintenance and Rehab 1,698,745
SB 1383 Local Assistance Grant 24,624
Total restricted 12,026,765$
Co mmitted :
Community Facilities District 12,690$
Total committed 12,690$
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
71 9. NET POSITION/ FUND BALANCES, Continued
The following describe the purpose of each nonspendable, restriction and commitment used by the City:
Nonspendable
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
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.
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.
State Gas Tax – represents amounts restricted for street purposes by the California Streets and Highways Code.
Supplemental Law Enforcement Services Fund (SLESF) - Accounts for revenues and expenditures associated with State funds provided as a match fo r the COPS Universal Hiring Grant.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
72 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.
SB 1383 Local Assistance Grant - This fund will track grant funds from CalRecycle and expenditures associated with complying with Senate Bill 1383.
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
Community Center - $2,142,477 resulted from operational costs in excess of revenues. The City plans to address this deficit in the next fiscal year.
State Gas Tax - $330,421 – resulted from the deplet ion of the fund balance through operational expenditures.
Street Light - Landscape District - $367,892 resulted from depletion of the fund balance through operational expenditures.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
73 9. NET POSITION/ FUND BALANCES, Continued
Nonmajor Special Revenue Funds, Continued
CMAQ – $116,810 resulted from the advance of funds through a Federal grant setup on a cost reimbursement basis with revenues to be received in future years.
Transportation Development Act - $174,018 resulted from expenditures related to the Safe Rout es to School Morgan Road Corridor Improvement Capital Improvement Pla n (CIP) project exceeding revenues during the fiscal year.
Daniel Whitmore House - $844 resulted from the advance of funds from the City with re venues to be received in future years.
Clinton Whitmore Mansion - $134,575 resulted from the advance of funds from the City wit h revenues to be received in future years.
SB2 Planning Grants Program Fund - $20,214 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, 2023, for the following funds:
Total Excess
Expenditures Expenditures
Final Budget and Transfers Over Appropriations
Governmental Activities
Non-major Funds:
Special Revenue Funds:
SLESF 100,000 $ 143,219 $ (43,219) $ Traffic Safety - 53,022 (53,022) Department of Conservation Grant 15,000 29,517 (14,517) Community Facilities District 694,936 746,277 (51,341) LLEBG - 21,570 (21,570) Daniel Whitmore House 5,371 6,095 (724) SB 1383 - 45,486 (45,486)
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
74 10. INTERFUND TRANSACTIONS
Due to and due from other funds consisted of the following as of June 30, 2023:
Due from Due to
Other Funds Other Funds
Governmental Activities
Major Funds:
General Fund 3,423,968 $ - $
Com m unity Center - 2, 006,594 Total Major Funds 3,423,968 2,006,594
Non-m ajor Funds:
Special Revenue Funds:
State G as Tax - 638,487 Street Light-Landscape District - 352,262 Traffic Safety - 9,663
CMAQ - 107,423
Transportation Development Act - 174,018 Daniel Whitm ore House - 770 Clinton Whitmore Mans ion - 134,516 Total Non-major Special Revenue Funds - 1,417,139 Total Non-m ajor Funds - 1,417,139 Internal Service Funds:
Risk Management - 235
Total Governmental Activities 3,423,968$ 3,423,968$
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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
75 10. INTERFUND TRANSACTIONS, Continued
Activity for advances for the year ended June 30, 2023, was as follows:
Advances to Advances from
Other Funds Other Funds
Governmental Activities
Major Funds:
General Fund 531,494 $ 1,894,966 $
Total Major Funds 531,494 1,894,966
Enterprise Funds
Sewer 1,894,966 -
Total Enterprise Funds 1,894,966 -
Successor Agency
CRA - -
SCRC - 531,494
Total Successor Agency - 531,494 Total Advances 2,426,460$ 2,426,460$
Advances from the General Fund to the Successor Agency - SCRC w ere for Redevelopment Agency start-up costs. Advances from the Sewer Fund to the General Fund were provided to finance the purchase of a fire engine in Fiscal Year 2019-2020. Repayments of $304,000 are bring made annually over eleven years at an interest rate of 3%.
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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
76 10. INTERFUND TRANSACTIONS, Continued
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.
Transfers consisted of the following at June 30, 2023:
Transfers In Transfers Out
Governmental Activities
Major Funds:
General Fund 892,886 $ 311,878 $
Total Major Funds 892,886 311,878
Non-m ajor Funds:
Special Revenue Funds:
Measure H - 152,000
Community Facilities Dis trict - 738,379 Daniel Whitm ore House 5,371 -
Total Non-m ajor Special Revenue Funds 5,371 890,379 Total Governmental Activities 898,257 1,202,257 Proprietary Funds
Sewer 304,000 -
Total Propretary Funds 304,000 -
Total Transfers 1,202,257$ 1,202,257$
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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
77 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 $5,000,000 to the statutory limit.
The CSJVRMA is a consortium of fifty-four (54) cities in San Jo aquin Valley, California. It was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets three to four times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.
The financial information from the audited financial statements of the CSJVRMA, as of June 30, 2023, the most recent available, is presented below:
Total assets 153,984,502$
Total liabilities 120,022,096
Total equities 33,962,406
Total revenues 73,024,624
Total expenses 71,300,255
Revenues over (under) expenses 1,724,369
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 2022-2023, and there were no changes to the City’s insurance coverage from the prior year.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
78 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 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 2022-2023 1,404,797 2,195,524 (2,023,050) 1,577,271
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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
79 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
80 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, 2023, 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
June 30, 2023 5,981,838
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 77.4% actuarially funded as of June 30, 2023.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
81 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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 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, 2023 actuarial valuations was determined using the following actuarial assumptions:
Actuarial Assumptions
Valuation date June 30, 2021
Measurement date June 30, 2022
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 project ed to be available to make all 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
82 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, 2023 are summarized in the following table:
Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
Domestic Equities
US Large Cap 16.00% 4.50%
US Small Cap 4.00% 5.10%
International Equities
International Development 14.50% 4.60%
Emerging Market Equity 5.50% 7.10%
US Fixed Income
US Treasury 6.00% 1.00%
Short-term Gov/Credit 7.00% 3.00%
Real Estate Securities
Core 6.50% 2.80%
Value-add 6.00% 4.30%
Risk Parity 10.00% 3.70%
Absolute Return 3.00% 3.10%
Private Equity 5.00% 7.90%
Private Credit 8.00% 6.30%
Infrastructure 7.50% 5.50%
Cash 1.00% 0.50%
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported net pension liabilities for its proportionate share of the net pension liability of the Plan of $45,591,673.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
83 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, 2022, 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, 2021 rolled forward to June 30, 2022 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, 2023 and 2022 was 6.1773% and 5.2415% respectively.
For the year ended June 30, 2023, the City recognized pension expense of $2,623,260. At June 30, 2023, 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 5,981,838 $ - $ Differences between actual and expected experience 3,325,617 - Changes in proportions 5,470,464 1,925,174 Differences between the employer's contributions and the employer's proportionate share of the contributions 214,184 800,115 Net differences between projected and actual earnings on plan investments 6,493,958 -
Changes in assumptions 299,575 2,936,295 Total 21,785,636$ 5,661,584$
$5,981,838 reported as deferred outflows of resources related t o contributions subsequent to the measurement date and changes in proportion that will be recogni zed as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
30-Jun
2024 2,860,117$
2025 2,105,731
2026 (89,382)
2027 5,265,747
2028 -
Thereafter -
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
84 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 pens ion liability 72,847,771 $ 45,591,673 $ 23,204,310 $
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, 2023 as follows:
Revenues 55,352$
Expenditures:
Public safety 43,624
Revenues (under) expenditures 11,728
Fund balances:
Beginning balance 65,370
Ending balance 77,098$
AVA expenditures for 2023 are in compliance with Sections 9250.7 and 22710 of the Vehicle Code.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
85 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
86 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
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.
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, 2023 for the Successor Agency, consisted of the following:
Beginning Ending
Description July 1, 2022 Additions (Deletions) June 30, 2023 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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
87 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, 2023:
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, 2023 were $6,600.
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, 2023 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, 2023 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, 2023 was $0.
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, 2023 was $633,000.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
88 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued
Long-term Liabilities
The following is a summary of changes in long-term debt for fiduciary activities for the year ended June 30, 2023:
Balance Transfers/ Balance Due Within
July 1, 2022 Additions Retirem ents June 30, 2023 One Y ear Fiduciary Activities:
2000 SCRC Tax Allocation Bonds 735,000$ -$ (60,000)$ 675,000$ 65,000$ 2015 Successor CRA Tax Allocation
Refunding Bonds 6,370,000 - (335,000) 6,035,000 350,000 Bond prem ium 171,773 (14,542) 157,231 14,542 2020 CRA Non-Housing Refunding
Tax Allocation Bonds 18,435,000 - (1,040,000) 17,395,000 1,080,000 Bond prem ium 3,502,036 - (254,689) 3,247,347 250,145 Total fiduciary activities 29,213,809$ -$ (1,704,231)$ 27,509,578$ 1,759,687$
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 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
89 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, 2023, there were no arbitrage liabilities.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
90 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued
Future debt service at June 30, 2023, is as follows for fiduciary debt:
Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 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 85,000 22,946 430,000 179,463 1,265,000 511,800 2029-2033 300,000 30,820 3,150,000 500,944 6,100,000 1,781,800 2034-2038 - - 940,000 17,625 5,430,000 479,000 2039-2042 - - - - - - Total 675,000 $ 197,319 $ 6,035,000 $ 1,758,157 $ 17,395,000 $ 5,289,200 $ Due within one year 65,000$ 42,959 $ 350,000 $ 293,000 $ 1,080,000 $ 695,800 $ Due after one year 610,000 154,360 5,685,000 1,465,157 16,315,000 4,593,400 Total 675,000 $ 197,319 $ 6,035,000 $ 1,758,157 $ 17,395,000 $ 5,289,200 $ Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2024 14,542 $ - $ 250,145$ - $ 1,759,687$ 1,031,759 $ 2025 14,542 - 250,145 - 1,829,687 966,070 2026 14,542 - 250,145 - 1,904,687 897,249 2027 14,542 - 250,145 - 1,969,687 825,200 2028 14,542 - 250,145 - 2,044,687 714,209 2029-2033 72,709 - 1,250,727 - 10,873,436 2,313,564 2034-2038 11,812 - 745,895 - 7,127,707 496,625 2039-2042 - - - - - - Total 157,231$ -$ 3,247,347$ -$ 27,509,578$ 7,244,676$ Due within one year 14,542$ -$ 250,145$ -$ 1,759,687$ 1,031,759$ Due after one year 142,689 - 2,997,202 - 25,749,891 7,244,676 Total 157,231$ -$ 3,247,347$ -$ 27,509,578$ 8,276,435$ 2020 CRA Non-Housing
Refunding Tax Allocation
Bonds
2000 SCRC Tax Allocation
Bonds
2015 CRA Tax Allocation
Refunding Bonds
Premium2020 CRA Non-Housing
Refunding Bonds
Premium
2015 CRA Tax Allocation
Bonds
R efunding T ax Allocat ion
Totals
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
91 14. SUCCESSOR AGENCY TRUST FOR A SSETS OF FORMER REDEVELOPMENT AGENCY, Continued
Activity for advances for the year ended June 30, 2023, was as follows:
Advances to Advances from
Other Funds Other Funds
Governmental Activities
Major Funds:
General Fund 531,494$ -$
Total Major Funds 531,494 -
Total Governmental Activities 531,494 - Fiduciary Activities :
Private Purpose Trust Funds:
Former Ceres Redevelopment Agency
Non-Housing - 1,826,680
Former Ceres Redevelopment Agency
Housing 1,826,680 -
Former Stanislaus - Ceres Redevelopment
Commission Successor Agency Non-Housing - 531,494 Total Private Purpose Trust Funds 1,826,680 2,358,174 Total Fiduciary Activities 1,826,680 2,358,174
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.
Stanislaus Regional Water Authority
The City of Ceres and the City of Trulock formed a joint powers authority, the Stanislaus Regional Water Authority (SRWA), in order to develop and finance the Regional Surface Water Supply Project (RSWSP). The project consists of the construction of a water tr eatment plant (WTP) and associated facilities with the capacity to treat up to 30 million gallons per day (MGD) of surface water from the Tuolumne River. The water will be provided by Turlock Irrigatio n District (TIO). The RSWSP is also expected to include a system of pipelines to transport the wate r to the project participants. The environmental review process for the RSWSP and related terminal facilities for each Project Participant is complete.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
92 15. COMMITMENTS AND CONTINGENCIES, Continued
Stanislaus Regional Water Authority
In furtherance of the RSWSP, on February 2, 2020, the SRWA, the Project Participants, and TIO entered into a Regional Surface Water Supply Phase 3 Project Design and Construction Funding Agreement.
Pursuant to the agreement, the City of Ceres will be entitled to 33.3% of the capacity of the RSWSP and the City of Turlock will be entitled to the remaining 66.7%.
The RSWSP project is expected to cost a total of $266,949,332. The City's investment in the project at June 30, 2023, was $59,069,152. Additional information regardin g this project can be found at www.stanrwa.com.
16. NEW ACCOUNTING PRONOUNCEMENTS
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 information 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 implementation of this statement did not have an effect on the financial statements.
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 implementation of this statement did not have an effect on the financial statements.
The GASB has issued Statement No. 99, "Omnibus 2022. " T h e o b j e c t i v e s o f t h i s S t a t e m e n t a r e t o enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial repor ting for financial guarantees. The requirements related to leases, PPPs, and SBITA s will take effect for financial statements starting with the fis cal year that ends June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative i nstruments within the scope of Statement 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024.
The GASB has issued Statement No. 100, "Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62 ." The primary objective of this Statement is to enhance accoun ting and financial reporting requirements for accounting changes and err or corrections to provide more understandable, reliable, relevant , consistent, and comparable information for making decisions or assessing accountability. The re quirements of this Statement wi ll take effect for financial statements starting with the fiscal year that ends June 30, 2024.
ITEM 13
City of Ceres, California
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2023
93 16. NEW ACCOUNTING PRONOUNCEMENTS, Continued
The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement use rs by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024.
ITEM 13
94 This page intentionally left blank.
ITEM 13
REQUIRED SUPPLEMENTARY INFORMATION
95 ITEM 13
City of Ceres, California
Required Supplementary Information - Schedule of Contributions Last 10 Fiscal Years*
2023 2022 2021 2020 2019 2018 2017 2016
Contractually required contribution (actuarially
determined) 5,226,127$ 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 5,226,127 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 payroll 11,560,488$ 13,305,865 $ 14,028,282 $ 12,808,104 $ 11,548,404 $ 12,342,023 $ 13,228,342 $ 13,055,073 $ Contribution as a percentage of covered-employee
payroll 45.21% 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. 96 ITEM 13
City of Ceres, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Last 10 Fiscal Years*
2023 2022 2021 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 6.1773% 5.2415% 5.7019% 5.5842% 5.1682% 5.5554% 5.8514% 5.6629% Plan's Proportionate Share of the Net Pension
Liability/(Asset) 45,591,673$ 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 11,560,488$ 13,305,865 $ 14,028,282 $ 12,808,104 $ 11,548,404 $ 12,342,023 $ 13,228,342 $ 13,055,073 $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered-
Emplo
yee Payroll 394.37% 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 Percenta
ge of the Plan’s Total Pension Liability 77.40% 86.50% 73.00% 77.00% 76.70% 75.00% 70.60% 86.10% Plan's Proportionate Share of Aggregate Employer
Contribution
5,226,127$ 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. 97 ITEM 13
This page intentionally left blank.
98 ITEM 13
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
99 ITEM 13
This page intentionally left blank.
100
ITEM 13
Fund
Street Expansion
CDBG Grants
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
State Gas Tax
SLESF Grant
Abandoned Vehicle Abatement
Seized Property
Downtown Revitalization
Street-Light and Landscape District
Traffic Offender
State Traffic Safety
(continued)
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.
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.
Accounts for fees collected from developers to be used to widen streets due to the traffic impact of their projects.
Accounts for activities related to housing and the related CDBG funding.
Fund established for the Program Income from the State Housing & Community Development Building Equity & Growth in Neighborhoods grant.
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. 101
ITEM 13
Fund
Used Oil Recycling Grant
Department of Conservation
CMAQ
Community Facilities District
Fire Hydrant Benefit District
Transportation Development Act
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)
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.
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.
This fund is used to account for Federal funds used for transit and street-related 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.
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 2023. The SB 1383 fund is a special revenue fund. This fund will track grant funds from CalRecycle and ex
penditures 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.
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.
NON-MAJOR GOVERNMENTAL FUNDS, Continued
Description
102
ITEM 13
This page intentionally left blank.
103
ITEM 13
City of Ceres, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Storm
Drain
Street CDBG Street Benefit Brown
Expansion Grants Tree Districts Annex
ASSETS
Cash and investments 2,431,318$ 311,656 $ 101,742 $ 932,729 $ 42,961 $ Receivables:
Taxes - - - - Interest 1,829 352 91 797 26 Intergovernmental - 413,437 - - - Loans receivable - 451,955 - - - Other receivable - - - - - Total assets 2,433,147$ 1,177,400$ 101,833$ 933,526$ 42,987$
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities -$ 2,720$ -$ -$ -$ Due to other funds - - - - Total liabilities - 2,720 - - - Deferred inflows: unavailable revenue - 451,954 - - - Total liabilities and deferred inflows - 454,674 - - - Fund Balances:
Nonspendable:
Capital projects - - - - Restricted - 722,726 - 933,526 - Committed - - - - - Assigned, reported in:
Special revenue funds 2,433,147 - 101,833 - 42,987 Unassigned (deficit) - - - - - Total fund balances 2,433,147 722,726 101,833 933,526 42,987 Total liabilities and fund balances 2,433,147$ 1,177,400 $ 101,833 $ 933,526 $ 42,987 $ 104
ITEM 13
Eastgate
Street Program
Benefit Neighborhood BEGIN Income State
District AB 939 Park Fees Grant BEGIN Gas Tax SLESF
106,561$ 171,466 $ 1,330,692 $ 470,212 $ 229,994 $ - $ 73,658$ - - - - - - - 91 149 1,136 422 206 - - - - - - - 332,096 65,271 - - - 344,050 - - - - - - - - - - 106,652$ 171,615$ 1,331,828$ 814,684$ 230,200$ 332,096$ 138,929$ -$ 487$ 8,777$ -$ -$ 24,030$ -$ - - - - - 638,487 - - 487 8,777 - - 662,517 - - - - 344,050 - - - - 487 8,777 344,050 - 662,517 - - - - - - - 106,652 - - 470,634 230,200 138,929 - - - - - - - - 171,128 1,323,051 - - - - - - - - - (330,421) - 106,652 171,128 1,323,051 470,634 230,200 (330,421) 138,929 106,652$ 171,615$ 1,331,828$ 814,684$ 230,200$ 332,096$ 138,929$ (continued)
105
ITEM 13
City of Ceres, California
Combining Balance Sheet
Nonmajor Special Revenue Funds, Continued
June 30, 2023
Abandoned Street Light-
Vehicle Seized Downtow n Landscape Traffic
Abatement Property Revitalizatio n District Offender
ASSETS
Cash and investments 64,804$ 49,166 $ 67,506 $ - $ 58,639$ Receivables:
Taxes - - - - - Interest 67 44 61 - - Intergovernmental 12,300 - - - - Loans receivable - - - - - Other receivable - - - - - Total assets 77,171$ 49,210$ 67,567$ -$ 58,639$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 73$ 31,756$ 97$ 15,630$ 7,273$ Due to other funds - - - 352,262 - Total liabilities 73 31,756 97 367,892 7,273 Deferred inflows: Grants - - - - - Total liabilities and deferred inflows 73 31,756 97 367,892 7,273 Fund Balances:
Nonspendable:
Capital projects - - - Restricted - - - - - Committed - - - - - Assigned, reported in:
Special revenue funds 77,098 17,454 67,470 - 51,366 Unassigned (deficit) - - - (367,892) - Total fund balances 77,098 17,454 67,470 (367,892) 51,366 Total liabilities and fund balances 77,171$ 49,210 $ 67,567 $ - $ 58,639$ 106
ITEM 13
Dept of Community Fire Hydrant
Traffic Used Oil Conservatio n Facilities Benefi t
Safety Grants Grant CMAQ Distric t District
-$ 24,831$ 57,357$ -$ 12,126$ 129,139$ - - - - - - - 22 51 - 564 - - - - - - - - - - - - - 9,663 - - - - - 9,663$ 24,853$ 57,408$ -$ 12,690$ 129,139$ -$ -$ 5,413$ 9,387$ -$ -$ 9,663 - - 107,423 - - 9,663 - 5,413 116,810 - - - - - - - - 9,663 - 5,413 116,810 - - - - - - - - - - 51,995 - - 129,139 - - - - 12,690 - - 24,853 - - - - - - - (116,810) - - - 24,853 51,995 (116,810) 12,690 129,139 9,663$ 24,853$ 57,408$ -$ 12,690$ 129,139$ (continued)
107
ITEM 13
City of Ceres, California
Combining Balance Sheet
Nonmajor Governmental Funds, Continued
June 30, 2023
Transportation Public Danie l RiverBluff
Development Facilities Whitmore Regional
Act LLEBG Fee s House Par k
ASSETS
Cash and investments -$ 22,176$ 2,750,817$ -$ 26,317$ Receivables:
Taxes - - - - - Interest - 26 2,268 - - Intergovernmental - 119 - - - Loans receivable - - - - - Other receivable - - - - - Total assets -$ 22,321$ 2,753,085$ -$ 26,317$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ - $ 25,022$ 74$ -$ Deposits payable - - - - - Due to other funds 174,018 - - 770 - Total liabilities 174,018 - 25,022 844 - Deferred inflows: unavailable revenue - - - - - Total liabilities and deferred inflows 174,018 - 25,022 844 - Fund Balances:
Restricted - - - - - Committed - - - - - Assigned, reported in:
Special revenue funds - 22,321 2,728,063 - 26,317 Unassigned (deficit) (174,018) - - (844) - Total fund balances (174,018) 22,321 2,728,063 (844) 26,317 Total liabilities and fund balances -$ 22,321$ 2,753,085$ -$ 26,317$ 108
ITEM 13
Ceres Clinton Road SB2 Planning SB 1383 Local
Community Whitmore Maintenance Grants Program Assistance Foundation Mansio n Measure L and Rehab Fund Gran t CARES Act 141,463$ -$ 4,287,274$ 1,599,260$ 44,993$ 24,591$ 8,886,238$ 24,449,686$ - - 638,867 - - - - 638,867 127 - 3,722 1,347 - 33 - 13,431 - - - 98,138 - - - 921,361 - - - - - - - 796,005 - - - - - - - 9,663 141,590$ -$ 4,929,863$ 1,698,745$ 44,993$ 24,624$ 8,886,238$ 26,829,013$ 959$ 59$ -$ -$ 65,207$ -$ 106,234$ 303,198$ - - - - - - - - - 134,516 - - - - - 1,417,139 959 134,575 - - 65,207 - 106,234 1,720,337 - - - - - - - 796,004 959 134,575 - - 65,207 - 106,234 2,516,341 140,631 - 4,929,863 1,698,745 - 24,624 - 9,577,664 - - - - - - - 12,690 - - - - - - 8,780,004 15,867,092 - (134,575) - - (20,214) - - (1,144,774) 140,631 (134,575) 4,929,863 1,698,745 (20,214) 24,624 8,780,004 24,312,672 141,590$ -$ 4,929,863$ 1,698,745$ 44,993$ 24,624$ 8,886,238$ 26,829,013$ (concluded)
Totals
109
ITEM 13
City of Ceres, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Storm
Drain
Street CDBG Street Benefit Brown
Expansion Grants Tree Districts Annex
REVENUES:
Property and other taxes -$ - $ - $ 84,605$ 35,860 $ Licenses and permits - - - - - Fines, forfeitures and penalties - - - - - Charges for services - - - - - Intergovernmental 695,006 416,650 - - - Use of money and property 9,342 1,870 483 4,122 54 Other revenues - - - - - Total revenues 704,348 418,520 483 88,727 35,914 EXPENDITURES:
Current:
General government 4,598 - - - - Public safety - - - - - Engineering and Transportation - - - 2,618 - Public works - - - - - Community services - - - - - Economic development - 5,920 - - - Capital outlay 259,849 177,533 - - - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 264,447 183,453 - 2,618 -
REVENUES OVER (UNDER)
EXPENDITURES 439,901 235,067 483 86,109 35,914 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) 439,901 235,067 483 86,109 35,914 FUND BALANCES (DEFICIT):
Beginning of year 1,993,246 487,659 101,350 847,417 7,073 End of year 2,433,147$ 722,726 $ 101,833 $ 933,526 $ 42,987 $ 110
ITEM 13
Eastgate
Street Program
Benefit Neighborhood BEGIN Income State
District AB 939 Park Fees Grant BEGIN Gas Tax SLESF
36,487$ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - 321,410 - - - - - - - - - 1,231,966 233,819 410 1,011 5,541 2,238 1,094 - - - - - - - 2,828 - 36,897 1,011 326,951 2,238 1,094 1,234,794 233,819 - - 316 - - - - - - - - - - 143,219 - 6,032 17,895 - - 6,031 - -
52,218 - - 1,134,152 - - - - - - - - - - - - - - - - - 34,285 - - - - - - - - - 112,938 - - - - - - 6,041 - - 58,250 52,496 - - 1,259,162 143,219 36,897 (57,239) 274,455 2,238 1,094 (24,368) 90,600 - - - - - - - - - - - - - - - - - - - - 36,897 (57,239) 274,455 2,238 1,094 (24,368) 90,600 69,755 228,367 1,048,596 468,396 229,106 (306,053) 48,329 106,652$ 171,128$ 1,323,051$ 470,634$ 230,200$ (330,421)$ 138,929$ (continued)
111
ITEM 13
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, 2023
Abandoned Street Light-
Vehicle Seized Downtown Landscape Traffic
Abatement Property Revitalization District Offender
REVENUES:
Property and other taxes - $ -$ -$ 467,658$ -$ Licenses and permits - - - - - Fines, forfeitures and penalties - - - - - Charges for services - - 10,769 - 62,754 Intergovernmental 55,005 - - - 11,900 Use of money and property 347 215 332 - - Other revenues - - - - - Total revenues 55,352 215 11,101 467,658 74,654 EXPENDITURES:
Current:
General government - - - - - Public safety 43,624 7,541 - - 68,984 Engineering and Transportation - - - - - Public works - - - 213,003 - Community services - - - 330,169 - Economic development - - 16,150 - - Capital outlay - - - - - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 43,624 7,541 16,150 543,172 68,984
REVENUES OVER (UNDER)
EXPENDITURES 11,728 (7,326) (5,049) (75,514) 5,670 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) 11,728 (7,326) (5,049) (75,514) 5,670 FUND BALANCES (DEFICIT):
Beginning of year 65,370 24,780 72,519 (292,378) 45,696 End of year 77,098 $ 17,454$ 67,470$ (367,892)$ 51,366$ 112
ITEM 13
Dept of Community Fire Hydrant
Traffic Used Oil Conservation Facilities Benefit
Safety Grants Grant CMAQ District District
-$ -$ -$ -$ 744,931$ -$ - - - - - - 53,022 - - - - - - - - - - - - 448 12,374 1,487,755 - - - 118 270 - 1,345 - - - - - - - 53,022 566 12,644 1,487,755 746,276 - - - - - - - 53,022 - - - - - - - - - - - - 2,000 29,517 - 7,898 - - - - - - - - - - - - - - - - 1,020,023 - - - - - - - - - - - - - - 53,022 2,000 29,517 1,020,023 7,898 - - (1,434) (16,873) 467,732 738,378 - - - - - - - - - - - (738,379) - - - - - (738,379) - - (1,434) (16,873) 467,732 (1) - - 26,287 68,868 (584,542) 12,691 129,139 -$ 24,853$ 51,995$ (116,810)$ 12,690$ 129,139$ (continued)
113
ITEM 13
City of Ceres, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds, Continued
For the year ended June 30, 2023
Transportation Public Daniel RiverBluff
Development Facilities Whitmore Regional
Act LLEBG Fees House Park
REVENUES:
Property and other taxes -$ -$ -$ -$ - $ Fines, forfeitures and penalties - - - - - Charges for services - - 277,440 - 1,235 Intergovernmental - 13,876 - - - Use of money and property - 141 12,106 - - Other revenues - - - - - Total revenues - 14,017 289,546 - 1,235 EXPENDITURES:
Current:
General government - - - - - Public safety - 21,570 44,044 - - Engineering and Transportation - - - - - Public works - - - - - Community services - - - 6,095 - Economic development - - - - - Capital outlay 199,436 - 10,390 - - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 199,436 21,570 54,434 6,095 -
REVENUES OVER (UNDER)
EXPENDITURES (199,436) (7,553) 235,112 (6,095) 1,235 OTHER FINANCING SOURCES (USES):
Transfers in - - - 5,371 - Transfers out - - - - - Total other financing
sources and uses - - - 5,371 -
REVENUES AND OTHER FINANCIN
G
SOURCES OVER (UNDER)
EXPENDITURES AND OTHE
R
FINANCING (USES) (199,436) (7,553) 235,112 (724) 1,235 FUND BALANCES (DEFICIT):
Beginning of year 25,418 29,874 2,492,951 (120) 25,082 End of year (174,018)$ 22,321 $ 2,728,063$ (844) $ 26,317 $ 114
ITEM 13
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 - $ - $ -$ -$ - $ - $ -$ 1,369,541$ - - - - - - - 53,022 - - - - - - - 673,608 - - 2,510,922 1,081,943 - - 5,825,755 13,577,419 674 - 17,712 7,157 - 164 - 66,746 - - - - - - - 2,828 674 - 2,528,634 1,089,100 - 164 5,825,755 15,743,164 220 - 5,700 - 17,851 - 1,079,480 1,108,165 - - - - - - 505,527 887,531 - - 7,396 - - - 42,039 82,011 - - - - - 45,486 76,582 1,560,856 - 18,171 - - - - 83,116 437,551 - - - - - - 5,720 27,790 - - 2,060,799 1,177,652 - - 94,014 5,033,981 - - - - - - - 112,938 - - - - - - - 6,041 220 18,171 2,073,895 1,177,652 17,851 45,486 1,886,478 9,256,864 454 (18,171) 454,739 (88,552) (17,851) (45,322) 3,939,277 6,486,300 - - - - - - - 5,371 - - - - - - - (738,379) - - - - - - - (733,008) 454 (18,171) 454,739 (88,552) (17,851) (45,322) 3,939,277 5,753,292 140,177 (116,404) 4,475,124 1,787,297 (2,363) 69,946 4,840,727 18,559,380 140,631$ (134,575)$ 4,929,863$ 1,698,745$ (20,214)$ 24,624 $ 8,780,004$ 24,312,672$ (concluded)
115
ITEM 13
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street Expansion Special Revenue Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 350,000$ 350,000 $ 695,006 $ 345,006 Use of money and property 13,000 13,000 9,342 (3,658) Total revenues 363,000 363,000 704,348 341,348 EXPENDITURES:
Current:
General government 2,066 2,066 4,598 (2,532) Engineering and Transportation 20,000 21,306 - 21,306 Capital outlay 250,000 855,130 259,849 595,281 Total expenditures 272,066 878,502 264,447 614,055
REVENUES OVER (UNDER)
EXPENDITURES 90,934 (515,502) 439,901 955,403 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 90,934 (515,502) 439,901 955,403 FUND BALANCES:
Beginning of year 1,993,246 1,993,246 1,993,246 - End of year 2,084,180$ 1,477,744 $ 2,433,147 $ 955,403 $ Budgeted Amounts
116
ITEM 13
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CDBG Grants Special Revenue Fund
For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 2,255$ 2,255$ 416,650$ 414,395$ Use of money and property 2,900 2,900 1,870 (1,030) Total revenues 5,155 5,155 418,520 413,365 EXPENDITURES:
Current:
Economic development 302,950 302,950 5,920 297,030 Capital outlay - 529,804 177,533 352,271 Total expenditures 302,950 832,754 183,453 649,301
REVENUES OVER (UNDER)
EXPENDITURES (297,795) (827,599) 235,067 1,062,666 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (297,795) (827,599) 235,067 1,062,666 FUND BALANCES (DEFICIT):
Beginning of year 487,659 487,659 487,659 - End of year 189,864$ (339,940) $ 722,726 $ 1,062,666 $ Budgeted Amounts
117
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property 1,100$ 1,100$ 483$ (617)$ Total revenues 1,100 1,100 483 (617) EXPENDITURES:
Current:
Community services - - - - Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 1,100 1,100 483 (617) Net change in fund balances 1,100 1,100 483 (617) FUND BALANCES:
Beginning of year 101,350 101,350 101,350 - End of year 102,450$ 102,450 $ 101,833 $ (617) $ Budgeted Amounts
118
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes 20,000$ 20,000$ 84,605$ 64,605$ Use of money and property 16,022 16,022 4,122 (11,900) Total revenues 36,022 36,022 88,727 52,705 EXPENDITURES:
Engineering and Transportation - 62,347 2,618 59,729 Total expenditures - 62,347 2,618 59,729
REVENUES OVER (UNDER)
EXPENDITURES 36,022 (26,325) 86,109 112,434 Net change in fund balances 36,022 (26,325) 86,109 112,434 FUND BALANCES:
Beginning of year 847,417 847,417 847,417 - End of year 883,439$ 821,092 $ 933,526 $ 112,434 $ Budgeted Amounts
119
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes -$ -$ 35,860$ 35,860$ Use of money and property 50 50 54 4 Total revenues 50 50 35,914 35,864 EXPENDITURES:
Current:
General government - - - - Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 50 50 35,914 35,864 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 50 50 35,914 35,864 FUND BALANCES:
Beginning of year 7,073 7,073 7,073 - End of year 7,123$ 7,123$ 42,987$ 35,864$ Budgeted Amounts
120
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes -$ -$ 36,487$ 36,487$ Use of money and property 500 500 410 (90) Total revenues 500 500 36,897 36,397 EXPENDITURES:
Current:
Engineering and Transportation - 14,076 - 14,076 Total expenditures - 14,076 - 14,076
REVENUES OVER (UNDER)
EXPENDITURES 500 (13,576) 36,897 50,473 Net change in fund balances 500 (13,576) 36,897 50,473 FUND BALANCES:
Beginning of year 69,755 69,755 69,755 - End of year 70,255$ 56,179$ 106,652$ 50,473$ Budgeted Amounts
121
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 18,400$ 18,400$ -$ (18,400)$ Use of money and property 3,200 3,200 1,011 (2,189) Total revenues 21,600 21,600 1,011 (20,589) EXPENDITURES:
Current:
Engineering and Transportation 7,478 7,478 6,032 1,446 Public works 71,416 141,362 52,218 89,144
Total expenditures 78,894 148,840 58,250 90,590
REVENUES OVER (UNDER)
EXPENDITURES (57,294) (127,240) (57,239) 70,001 Net change in fund balances (57,294) (127,240) (57,239) 70,001 FUND BALANCES:
Beginning of year 228,367 228,367 228,367 - End of year 171,073$ 101,127 $ 171,128 $ 70,001 $ Budgeted Amounts
122
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Charges for services 125,000$ 125,000$ 321,410$ 196,410$ Use of money and property 16,900 16,900 5,541 (11,359) Total revenues 141,900 141,900 326,951 185,051 EXPENDITURES:
Current:
General government 700 700 316 384 Engineering and Transportation 20,000 20,004 17,895 2,109 Capital outlay 37,500 1,178,691 34,285 1,144,406 Total expenditures 58,200 1,199,395 52,496 1,146,899
REVENUES OVER (UNDER)
EXPENDITURES 83,700 (1,057,495) 274,455 1,331,950 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 83,700 (1,057,495) 274,455 1,331,950 FUND BALANCES:
Beginning of year 1,048,596 1,048,596 1,048,596 - End of year 1,132,296$ (8,899) $ 1,323,051 $ 1,331,950 $ Budgeted Amounts
123
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ - $ - $ Use of money and property 500 500 2,238 1,738 Total revenues 500 500 2,238 1,738 EXPENDITURES:
Current:
Economic development - - - - Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 500 500 2,238 1,738 Net change in fund balances 500 500 2,238 1,738 FUND BALANCES:
Beginning of year 468,396 468,396 468,396 - End of year 468,896$ 468,896 $ 470,634 $ 1,738 $ Budgeted Amounts
124
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ - $ - $ Use of money and property 2,460 2,460 1,094 (1,366) Total revenues 2,460 2,460 1,094 (1,366) EXPENDITURES:
Current:
Economic development - - - - Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 2,460 2,460 1,094 (1,366) Net change in fund balances 2,460 2,460 1,094 (1,366) FUND BALANCES:
Beginning of year 229,106 229,106 229,106 - End of year 231,566$ 231,566 $ 230,200 $ (1,366) $ Budgeted Amounts
125
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 1,418,349$ 1,418,349 $ 1,231,966 $ (186,383) $ Other revenues 1,415 1,415 2,828 1,413
Total revenues 1,419,764 1,419,764 1,234,794 (184,970) EXPENDITURES:
Current:
Engineering and Transportation 7,661 7,661 6,031 1,630 Public works 1,247,356 1,276,661 1,134,152 142,509 Capital outlay - 4,791 - 4,791 Total expenditures 1,255,017 1,289,113 1,259,162 29,951
REVENUES OVER (UNDER)
EXPENDITURES 164,747 130,651 (24,368) (155,019) OTHER FINANCING SOURCES (USES):
Transfers in - - - - Total other financing sources (uses) - - - - Net change in fund balances 164,747 130,651 (24,368) (155,019) FUND BALANCES (DEFICIT):
Beginning of year (306,053) (306,053) (306,053) - End of year (141,306)$ (175,402) $ (330,421) $ (155,019) $ Budgeted Amounts
126
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 100,000$ 100,000 $ 233,819$ 133,819$ Total revenues 100,000 100,000 233,819 133,819 EXPENDITURES:
Current:
Public safety - - 143,219 (143,219) Total expenditures - - 143,219 (143,219)
REVENUES OVER (UNDER)
EXPENDITURES 100,000 100,000 90,600 (9,400) 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 - - 90,600 90,600 FUND BALANCES:
Beginning of year 48,329 48,329 48,329 - End of year 48,329$ 48,329$ 138,929$ 90,600$ Budgeted Amounts
127
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 44,000$ 44,000$ 55,005$ 11,005$ Use of money and property 950 950 347 (603) Total revenues 44,950 44,950 55,352 10,402 EXPENDITURES:
Current:
Public safety 75,479 75,479 43,624 31,855
Total expenditures 75,479 75,479 43,624 31,855
REVENUES OVER (UNDER)
EXPENDITURES (30,529) (30,529) 11,728 42,257 Net change in fund balances (30,529) (30,529) 11,728 42,257 FUND BALANCES (DEFICIT):
Beginning of year 65,370 65,370 65,370 - End of year 34,841$ 34,841$ 77,098$ 42,257$ Budgeted Amounts
128
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ - $ - $ Use of money and property 250 250 215 (35) Other revenues 250 250 - (250)
Total revenues 500 500 215 (285) EXPENDITURES:
Current:
Public safety - 8,800 7,541 1,259 Total expenditures - 8,800 7,541 1,259
REVENUES OVER (UNDER)
EXPENDITURES 500 (8,300) (7,326) 974 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 500 (8,300) (7,326) 974 FUND BALANCES:
Beginning of year 24,780 24,780 24,780 - End of year 25,280$ 16,480$ 17,454$ 974$ Budgeted Amounts
129
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Charges for services 10,000$ 10,000$ 10,769$ 769$ Use of money and property 700 700 332 (368) Total revenues 10,700 10,700 11,101 401 EXPENDITURES:
Current:
Economic development 19,040 19,040 16,150 2,890 Total expenditures 19,040 19,040 16,150 2,890
REVENUES OVER (UNDER)
EXPENDITURES (8,340) (8,340) (5,049) 3,291 OTHER FINANCING SOURCES (USES):
Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (8,340) (8,340) (5,049) 3,291 FUND BALANCES:
Beginning of year 72,519 72,519 72,519 - End of year 64,179$ 64,179$ 67,470$ 3,291$ Budgeted Amounts
130
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes 453,674$ 453,674$ 467,658$ 13,984$ Use of money and property - - - - Total revenues 453,674 453,674 467,658 13,984 EXPENDITURES:
Current:
Public works 236,982 236,982 213,003 23,979
Community services 343,463 356,558 330,169 26,389 Total expenditures 580,445 593,540 543,172 50,368
REVENUES OVER (UNDER)
EXPENDITURES (126,771) (139,866) (75,514) 64,352 Net change in fund balances (126,771) (139,866) (75,514) 64,352 FUND BALANCES (DEFICIT):
Beginning of year (292,378) (292,378) (292,378) - End of year (419,149)$ (432,244) $ (367,892) $ 64,352 $ Budgeted Amounts
131
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Charges for services 55,000$ 55,000$ 62,754$ 7,754$ Intergovernmental - - 11,900 11,900 Total revenues 55,000 55,000 74,654 19,654 EXPENDITURES:
Current:
Public safety 78,475 78,475 68,984 9,491
Total expenditures 78,475 78,475 68,984 9,491
REVENUES OVER (UNDER)
EXPENDITURES (23,475) (23,475) 5,670 29,145 Net change in fund balances (23,475) (23,475) 5,670 29,145 FUND BALANCES (DEFICIT):
Beginning of year 45,696 45,696 45,696 - End of year 22,221$ 22,221$ 51,366$ 29,145$ Budgeted Amounts
132
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Fines and forfeitures 34,400$ 34,400$ 53,022$ 18,622$ Total revenues 34,400 34,400 53,022 18,622 EXPENDITURES:
Current:
Public safety - - 53,022 (53,022) Total expenditures - - 53,022 (53,022)
REVENUES OVER (UNDER)
EXPENDITURES 34,400 34,400 - (34,400) Net change in fund balances 34,400 34,400 - (34,400) FUND BALANCES (DEFICIT):
Beginning of year - - - - End of year 34,400$ 34,400$ -$ (34,400)$ Budgeted Amounts
133
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 13,400$ 13,400$ 448$ (12,952)$ Use of money and property 345 345 118 (227) Total revenues 13,745 13,745 566 (13,179) EXPENDITURES:
Current:
Engineering and Transportation - - - - Public works 13,400 13,400 2,000 11,400
Total expenditures 13,400 13,400 2,000 11,400
REVENUES OVER (UNDER)
EXPENDITURES 345 345 (1,434) (1,779) Net change in fund balances 345 345 (1,434) (1,779) FUND BALANCES:
Beginning of year 26,287 26,287 26,287 - End of year 26,632$ 26,632$ 24,853$ (1,779)$ Budgeted Amounts
134
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ 12,374$ 12,374$ Use of money and property 845 845 270 (575) Total revenues 845 845 12,644 11,799 EXPENDITURES:
Current:
Public works 15,000 15,000 29,517 (14,517) Total expenditures 15,000 15,000 29,517 (14,517)
REVENUES OVER (UNDER)
EXPENDITURES (14,155) (14,155) (16,873) (2,718) Net change in fund balances (14,155) (14,155) (16,873) (2,718) FUND BALANCES:
Beginning of year 68,868 68,868 68,868 - End of year 54,713$ 54,713$ 51,995$ (2,718)$ Budgeted Amounts
135
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 1,266,000$ 1,266,000 $ 1,487,755 $ 221,755$ Total revenues 1,266,000 1,266,000 1,487,755 221,755 EXPENDITURES:
Current:
Engineering and Transportation 10,765 10,765 - 10,765 Capital outlay 262,500 2,978,532 1,020,023 1,958,509 Total expenditures 273,265 2,989,297 1,020,023 1,969,274
REVENUES OVER (UNDER)
EXPENDITURES 992,735 (1,723,297) 467,732 2,191,029 Net change in fund balances 992,735 (1,723,297) 467,732 2,191,029 FUND BALANCES (DEFICIT):
Beginning of year (584,542) (584,542) (584,542) - End of year 408,193$ (2,307,839) $ (116,810) $ 2,191,029 $ Budgeted Amounts
136
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes 694,935$ 694,935$ 744,931$ 49,996$ Use of money and property 1,700 1,700 1,345 (355) Total revenues 696,635 696,635 746,276 49,641 EXPENDITURES:
Current:
Public works - - 7,898 (7,898) Total expenditures - - 7,898 (7,898)
REVENUES OVER (UNDER)
EXPENDITURES 696,635 696,635 738,378 41,743 OTHER FINANCING SOURCES (USES):
Transfers out (694,936) (694,936) (738,379) (43,443) Total other financing sources (uses) (694,936) (694,936) (738,379) (43,443) Net change in fund balances 1,699 1,699 (1) (1,700) FUND BALANCES:
Beginning of year 12,691 12,691 12,691 - End of year 14,390$ 14,390$ 12,690$ (1,700)$ Budgeted Amounts
137
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Property and other taxes 15$ 15$ -$ (15)$ Total revenues 15 15 - (15) EXPENDITURES:
Capital outla
y - - - - Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 15 15 - (15) Net change in fund balances 15 15 - (15) FUND BALANCES:
Beginning of year 129,139 129,139 129,139 - End of year 129,154$ 129,154 $ 129,139 $ (15) $ Budgeted Amounts
138
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ - $ -$ Use of money and property - - - - Total revenues - - - - EXPENDITURES:
Current:
Engineering and Transportation 2,500 2,500 - 2,500 Capital outlay - 260,783 199,436 61,347 Total expenditures 2,500 263,283 199,436 63,847
REVENUES OVER (UNDER)
EXPENDITURES (2,500) (263,283) (199,436) 63,847 Net change in fund balances (2,500) (263,283) (199,436) 63,847 FUND BALANCES (DEFICIT):
Beginning of year 25,418 25,418 25,418 - End of year 22,918$ (237,865)$ (174,018)$ 63,847$ Budgeted Amounts
139
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ 13,876$ 13,876$ Use of money and property 230 230 141 (89) Total revenues 230 230 14,017 13,787 EXPENDITURES:
Current:
Public safety - - 21,570 (21,570) Total expenditures - - 21,570 (21,570)
REVENUES OVER (UNDER)
EXPENDITURES 230 230 (7,553) (7,783) Net change in fund balances 230 230 (7,553) (7,783) FUND BALANCES:
Beginning of year 29,874 29,874 29,874 - End of year 30,104$ 30,104$ 22,321$ (7,783)$ Budgeted Amounts
140
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Charges for services 134,550$ 134,550$ 277,440$ 142,890$ Use of money and property 30,000 30,000 12,106 (17,894) Other revenues - - - - Total revenues 164,550 164,550 289,546 124,996 EXPENDITURES:
Current:
General government
Public safety 44,044 44,044 44,044 -
Capital outlay 398,667 1,553,415 10,390 1,543,025 Total expenditures 442,711 1,597,459 54,434 1,543,025
REVENUES OVER (UNDER)
EXPENDITURES (278,161) (1,432,909) 235,112 1,668,021 OTHER FINANCING SOURCES (USES):
Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (278,161) (1,432,909) 235,112 1,668,021 FUND BALANCES:
Beginning of year 2,492,951 2,492,951 2,492,951 - End of year 2,214,790$ 1,060,042 $ 2,728,063 $ 1,668,021 $ Budgeted Amounts
141
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property -$ - $ - $ - $ Total revenues - - - - EXPENDITURES:
Current:
Community services 5,371 5,371 6,095 (724) Total expenditures 5,371 5,371 6,095 (724)
REVENUES OVER (UNDER)
EXPENDITURES (5,371) (5,371) (6,095) (724) OTHER FINANCING SOURCES (USES):
Transfers in 5,371 5,371 5,371 - Total other financing sources (uses) 5,371 5,371 5,371 - Net change in fund balances - - (724) (724) FUND BALANCES (DEFICIT):
Beginning of year (120) (120) (120) - End of year (120)$ (120) $ (844) $ (724) $ Budgeted Amounts
142
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Charges for services 1,300$ 1,300$ 1,235$ (65) Total revenues 1,300 1,300 1,235 (65) EXPENDITURES:
Current:
Community services - - - - Total expenditures - - - -
REVENUES OVER (UNDER)
EXPENDITURES 1,300 1,300 1,235 (65) Net change in fund balances 1,300 1,300 1,235 (65) FUND BALANCES (DEFICIT):
Beginning of year 25,082 25,082 25,082 - End of year 26,382$ 26,382$ 26,317$ (65)$ Budgeted Amounts
143
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Use of money and property -$ - $ 674 $ 674$ Other revenues 500 500 - (500)
Total revenues 500 500 674 174 EXPENDITURES:
Current:
General government 6,120 6,120 220 5,900 Total expenditures 6,120 6,120 220 5,900
REVENUES OVER (UNDER)
EXPENDITURES (5,620) (5,620) 454 6,074 OTHER FINANCING SOURCES (USES):
Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances (5,620) (5,620) 454 6,074 FUND BALANCES:
Beginning of year 140,177 140,177 140,177 - End of year 134,557$ 134,557 $ 140,631 $ 6,074 $ Budgeted Amounts
144
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Other revenues -$ -$ -$ -$ Total revenues - - - - EXPENDITURES:
Current:
Community services 19,015 19,015 18,171 844 Total expenditures 19,015 19,015 18,171 844
REVENUES OVER (UNDER)
EXPENDITURES (19,015) (19,015) (18,171) 844 Net change in fund balances (19,015) (19,015) (18,171) 844 FUND BALANCES (DEFICIT):
Beginning of year (116,404) (116,404) (116,404) - End of year (135,419)$ (135,419) $ (134,575) $ 844 $ Budgeted Amounts
145
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 1,788,724$ 1,788,724 $ 2,510,922 $ 722,198 $ Use of money and property 10,000 10,000 17,712 7,712 Total revenues 1,798,724 1,798,724 2,528,634 729,910 EXPENDITURES:
Current:
General government 5,700 5,700 5,700 -
Engineering and Transportation 40,000 52,503 7,396 45,107 Capital outlay 1,550,000 6,491,570 2,060,799 4,430,771 Total expenditures 1,595,700 6,549,773 2,073,895 4,475,878
REVENUES OVER (UNDER)
EXPENDITURES 203,024 (4,751,049) 454,739 5,205,788 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 203,024 (4,751,049) 454,739 5,205,788 FUND BALANCES (DEFICIT):
Beginning of year 4,475,124 4,475,124 4,475,124 - End of year 4,678,148$ (275,925) $ 4,929,863 $ 5,205,788 $ Budgeted Amounts
146
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 1,114,682$ 1,114,682 $ 1,081,943 $ (32,739) $ Use of money and property 4,800 4,800 7,157 2,357 Total revenues 1,119,482 1,119,482 1,089,100 (30,382) EXPENDITURES:
Current:
Engineering and Transportation 30,000 30,000 - 30,000 Capital outlay 600,000 2,750,645 1,177,652 1,572,993 Total expenditures 630,000 2,780,645 1,177,652 1,602,993
REVENUES OVER (UNDER)
EXPENDITURES 489,482 (1,661,163) (88,552) 1,572,611 Net change in fund balances 489,482 (1,661,163) (88,552) 1,572,611 FUND BALANCES (DEFICIT):
Beginning of year 1,787,297 1,787,297 1,787,297 - End of year 2,276,779$ 126,134 $ 1,698,745 $ 1,572,611 $ Budgeted Amounts
147
ITEM 13
City of Ceres, California
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ - $ - $ Use of money and property - - - - Total revenues - - - - EXPENDITURES:
Current:
Public works 105,000 105,000 17,851 87,149
Total expenditures 105,000 105,000 17,851 87,149
REVENUES OVER (UNDER)
EXPENDITURES (105,000) (105,000) (17,851) 87,149 Net change in fund balances (105,000) (105,000) (17,851) 87,149 FUND BALANCES (DEFICIT):
Beginning of year (2,363) (2,363) (2,363) - End of year (107,363)$ (107,363) $ (20,214) $ 87,149 $ Budgeted Amounts
SB2 Planning Grants Program Special Revenue Fund
148
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental -$ - $ - $ - $ Use of money and property - - 164 164 Total revenues - - 164 164 EXPENDITURES:
Current:
General government - - 45,486 (45,486) Total expenditures - - 45,486 (45,486)
REVENUES OVER (UNDER)
EXPENDITURES - - (45,322) (45,322) OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances - - (45,322) (45,322) FUND BALANCES (DEFICIT):
Beginning of year 69,946 69,946 69,946 - End of year 69,946$ 69,946$ 24,624$ (45,322)$ Budgeted Amounts
149
ITEM 13
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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental 5,825,755$ 5,825,755 $ 5,825,755 $ - $ Use of money and property - - - - Total revenues 5,825,755 5,825,755 5,825,755 - EXPENDITURES:
Current:
General government 1,130,779 2,078,258 1,079,480 998,778 Public safety - 1,396,468 505,527 890,941 Engineering and Transportation - 100,000 42,039 57,961 Public works - 76,582 76,582 - Community services - 604,128 83,116 521,012 Economic development - 167,000 5,720 161,280 Capital outlay - 2,946,080 94,014 2,852,066 Total expenditures 1,130,779 7,368,516 1,886,478 5,482,038
REVENUES OVER (UNDER)
EXPENDITURES 4,694,976 (1,542,761) 3,939,277 5,482,038 OTHER FINANCING SOURCES (USES):
Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 4,694,976 (1,542,761) 3,939,277 5,482,038 FUND BALANCES (DEFICIT):
Beginning of year 4,840,727 4,840,727 4,840,727 - End of year 9,535,703$ 3,297,966 $ 8,780,004 $ 5,482,038 $ Budgeted Amounts
150
ITEM 13
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.
151
ITEM 13
City of Ceres, California
Statement of Fund Net Position
Internal Service Funds
June 30, 2023
Equipment Information Risk Building
Revolving Technology Management Maintenance Totals
ASSETS
Current assets:
Cash and investments 2,338,274 $ 557,338 $ 1,662,102 $ 1,050,913 $ 5,608,627$ Accounts receivable 182,323 - - - 182,323 Total current assets 2,520,597 557,338 1,662,102 1,050,913 5,790,950 Noncurrent assets:
Machinery and equipment 9,871,746 443,992 - 364,445 10,680,183 Less accumulated depreciation (5,409,743) (301,704) - (166,630) (5,878,077) Total noncurrent assets 4,462,003 142,288 - 197,815 4,802,106 Total assets 6,982,600$ 699,626$ 1,662,102$ 1,248,728 $ 10,593,056$
LIABILITIES AND NET POSITION
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 291,780$ 3,044$ 5,394$ 17,550 $ 317,768$ Due to other funds - - 235 - 235 Total current liabilities 291,780 3,044 5,629 17,550 318,003 Noncurrent liabilities:
Compensated absences 38,195 - - 71,606 109,801 Liability for claims - - 1,557,271 - 1,557,271 Total noncurrent liabilities 38,195 - 1,557,271 71,606 1,667,072 Total liabilities 329,975 3,044 1,562,900 89,156 1,985,075 Net Position:
Net investment in capital assets 4,462,003 142,288 - 197,815 4,802,106 Unrestricted net position (deficit) 2,190,622 554,294 99,202 961,757 3,805,875 Total net position 6,652,625 696,582 99,202 1,159,572 8,607,981 Total liabilities and net position 6,982,600$ 699,626$ 1,662,102$ 1,248,728 $ 10,593,056$ 152
ITEM 13
City of Ceres, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds
For the year ended June 30, 2023
Equipment Information Risk Building
Revolving Technology Management Maintenance Totals
OPERATING REVENUES:
Interdepartmental charges 3,316,760$ 1,038,309$ 2,645,216$ 1,517,092$ 8,517,377$ Other 90,152 - 26,192 - 116,344 Total operating revenues 3,406,912 1,038,309 2,671,408 1,517,092 8,633,721 OPERATING EXPENSES:
Salaries and benefits 510,306 515,982 95,289 796,660 1,918,237 Contractual and other services 305,468 197,121 - 260,307 762,896 Materials and supplies 633,479 22,299 - 369,449 1,025,227 Depreciation 663,734 37,784 - 25,628 727,146 Other operating costs 3,006 10,259 2,510,857 38,105 2,562,227 Total operating expenses 2,115,993 783,445 2,606,146 1,490,149 6,995,733 OPERATING INCOME (LOSS) 1,290,919 254,864 65,262 26,943 1,637,988 NONOPERATING REVENUE (EXPENSE):
Investment earnings - - - - - Gain on sale of assets 167,520 - - - 167,520 Transfers in (out) - - - - - Total non-operating revenue 167,520 - - - 167,520 CHANGE IN NET POSITION 1,458,439 254,864 65,262 26,943 1,805,508 NET POSITION (DEFICIT):
Beginning of year 5,194,186 441,718 33,940
1,132,629 6,802,473
End of year 6,652,625$ 696,582$ 99,202$ 1,159,572$ 8,607,981$ 153
ITEM 13
City of Ceres, California
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2023
Equipment Information Risk Building
Revolving Technology Management Maintenance Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds for services 3,224,996 $ 1,038,309 $ 2,645,216 $ 1,517,092 $ 8,425,613 $ Cash received from loss claim recoveries - - 26,192 - 26,192 Cash payments to suppliers for goods and services (802,202) (230,278) - (668,719) (1,701,199) Cash payments to employees for services (573,202) (515,982) (95,289) (790,591) (1,975,064) Cash payments for loss claims - - (2,356,139) - (2,356,139) Net cash provided (used) by operating activities 1,849,592 292,049 219,980 57,782 2,419,403 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers received (paid) (531,805) - - - (531,805) Net cash provided by noncapital financing activities (531,805) - - - (531,805)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition and construction of capital assets (1,652,022) (686) - (40,915) (1,693,623) Proceeds from sale of capital assets 167,520 - - - 167,520 Net cash (used) by capital and related financing activities (1,484,502) (686) - (40,915) (1,526,103) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest earning - - - - - Net increase in cash and cash equivalents (166,715) 291,363 219,980 16,867 361,495 CASH AND CASH EQUIVALENTS:
Beginning of year 2,504,989 265,975 1,442,122 1,034,046 5,247,132 End of year 2,338,274$ 557,338$ 1,662,102$ 1,050,913$ 5,608,627$ Reconciliation of income (loss) from operations to net
cash provided (used) by operating activities:
Income (loss) from operations
1,290,919$ 254,864 $ 65,262 $ 26,943 $ 1,637,988 $ Adjustments to reconcile income (loss) from operations
to net cash provided (used) by operating activities:
Depreciation 663,734 37,784 - 25,628 727,146 (Increase) decrease in current assets:
Accounts receivable (181,916) - - - (181,916) Increase (decrease) in liabilities:
Accounts payable and accrued liabilities 108,303 (599) 2,244 (858) 109,090 Compensated absences (31,448) - - 6,069 (25,379) Increase (decrease) in claims liability - noncurrent - - 152,474 - 152,474 Net cash provided (used) by operating activities 1,849,592$ 292,049 $ 219,980 $ 57,782 $ 2,419,403 $ 154
ITEM 13
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
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.
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.
155
ITEM 13
City of Ceres, California
Combining Statement of Net Position
Private Purpose Trust Funds
June 30, 2023
Totals
Non-Housing Housing Non-Housing Housing 2023
ASSETS AND DEFERRED OUTFLOWS OF
RESOURCES
Current assets:
Cash and investments 4,376,663$ 659,292 $ 95,620 $ - $ 5,131,575$ Cash and investments with trustee/fiscal agent 2,061,500 - - - 2,061,500 Interest receivable 4,481 - - - 4,481 Total current assets 6,442,644 659,292 95,620 - 7,197,556 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 18,942,791 4,507,821 95,620 192,522 23,738,754 Deferred outflows: Pension plan 78,699 - 90,669 - 169,368 Total assets and deferred outflows 19,021,490$ 4,507,821 $ 186,289 $ 192,522 $ 23,908,122
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND NET POSITION
Current liabilities:
Accounts payable and accrued liabilities 883$ -$ - $ - $ 883$ Interest payable - 8,591 - - 8,591 Compensated absences - current 9,683 4,289 13,972 Current portion of long term debt 1,694,687 - 65,000 - 1,759,687 Total current liabilities 1,705,253 8,591 69,289 - 1,783,133 Long-term liabilities:
Advances from Stanislaus County - - 266,702 - 266,702 Advances from City of Ceres General Fund - - 531,494 - 531,494 Advances from other funds 1,826,680 - - - 1,826,680 Due after one year 25,139,891 - 610,000 - 25,749,891 Net pension liability 170,508 - 153,982 - 324,490 Total long-term liabilities 27,137,079 - 1,562,178 - 28,699,257 Total liabilities 28,842,332 8,591 1,631,467 - 30,482,390 Deferred inflows: Pension plan 27,102 - 24,204 - 51,306 Total liabilities and deferred inflows 28,869,434 8,591 1,655,671 - 30,533,696 Net Position (Deficit):
Net position held in trust for
Redevelopment Dissolution (9,847,944) 4,499,230 (1,469,382) 192,522 (6,625,574) Total liabilities, deferred inflows, and net
position 19,021,490$ 4,507,821$ 186,289 $ 192,522 $ 23,908,122$ Successor Agency Successor Agency
Former Ceres Redevelopment Agency
Former Stanislaus - Ceres
Redevelopment Commission
156
ITEM 13
City of Ceres, California
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the year ended June 30, 2023
Totals
Non-Housing Housing Non-Housing Housing 2023
ADDITIONS:
Property taxes 2,594,475 $ - $ 168,634$ - $ 2,763,109$ Investment earnings 22,428 - - - 22,428 Other revenue - 28,869 - - 28,869 Total additions 2,616,903 28,869 168,634 - 2,814,406 DEDUCTIONS:
General and administrative 28,941 - - - 28,941 Salaries and benefits 173,173 - 42,348 - 215,521 Contractual and other services 63,059 - 16,876 - 79,935 Interest and debt service expenses 695,469 - 47,115 - 742,584 Total deductions 960,642 - 106,342 - 1,066,984 CHANGE IN FIDUCIARY NET POSITION 1,656,261 28,869 62,292 - 1,747,422 NET POSITION (DEFICIT):
Beginning of year (11,504,205) 4,470,361 (1,531,674) 192,522 (8,372,996) End of year (9,847,944)$ 4,499,230 $ (1,469,382) $ 192,522 $ (6,625,574)$ Former Ceres Redevelopment Agency
Former Stanislaus - Ceres
Redevelopment Commission
Successor Agency Successor Agency
157
ITEM 13
This page intentionally left blank.
158
ITEM 13
CITY OF CERES
GANN APPROPRIATIONS LIMIT SCHEDULE
FOR THE YEAR ENDED
JUNE 30, 2023
ATTACHMENT D
ITEM 13
City of Ceres
Gann Appropriations Limit Schedule
For the year ended June 30, 2023
Table of Contents
Page
Independent Accountants’ Report on Applying Agreed-Upon Procedures ........................................... 1-2
Gann Appropriations Limit Schedule………………… ………………………................ ........................3
ATTACHMENT D
ITEM 13
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
INDEPE
NDENT 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, 2023. These procedures, which were agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed- upon Procedures 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 proce dures is solely the responsibility of th ose parties specified in the report.
Consequently, we make no representation regarding th e 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. We obtained the completed worksheets used by the City to calculate its Appropriations Limit for the fiscal year ended June 30 , 2023 and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by Resolutio n of the City Council. We also compared the population and inflation options in the aforementioned wo rksheets to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. 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.
3. 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.
ATTACHMENT D
ITEM 13
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.
This report is intended solely fo r the information and us e 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. ]]TVcT? \ÇvA
July 10, 2024 JJACPA, Inc.
ATTACHMENT D
ITEM 13
CITY OF CERES
Gann Appropriations Limit Schedule
For the year ended June 30, 2023
Amount Source
A. Appropriations limit for the year ended June 30, 2022 $73,653,660 Prior year schedule B. Calculation Factors:
1. Population Increase % 0.9923 State Department of Finance
2. Inflation Increase % 1.0755 State Department of Finance
3. Total adjustment factor 1.0672 B1 * B2
C. Annual Adjustment Increase 4,949,526 [(B3-1)A1)]
D. Other Adjustments
Assumed responsibility (+) N/A
E. Total Adjustments $4,949,526 (C+D)
F. Appropriations limit for the year ended June 30, 2023 $78,603,186 (A+E) 3 ATTACHMENT D
ITEM 13
ITEM 13
CITY OF CERES, CALIFORNIA
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2023
ATTACHMENT E
ITEM 13
City of Ceres, California
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2023
Table of Contents
Page(s)
Schedule of Expenditures of Federal Awards ....................................................................................... 1
Notes to Schedule of Expenditures of Federal Awards ......................................................................... 2
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on An Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................... 3-4
Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................ 5-6
Schedule of Findings and Questioned Costs ................................................................................... 8-11 ITEM 13
City of Ceres, California
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2023
1 Fed eral Pass Throu g h Entity Fed eral
Federal Grantor/Pass-through CFDA Identification Total
G rantor/Program or Cluster Title Number Number Expenditures U.S. Department of T ransportation
Pass-through programs from the California Department of Transportation ITS S ignal S ynch PH IV 20.205 CML 5241 (063) 122,527$ ITS S ignal S ynch PH III 20.205 CML 5241 (062) 66,033 Traffic S ignal Timing Optimization 20.205 CML 5241 (069) 13,442 S myrna Park 20.205 CCL-5241(078) 142,996
T otal U.S. Department of T ransportation 344,998
U.S. Department of Housing and Urban Development
Passed through from the County of Stanislaus
Community Development Block G rant 14.218 BOS #2005365 177,590 T otal U.S. Department of Housing and Urban Development 177,590 U.S. Department of Justice
Direct Program :
Justice Assistance G rant 16.738 4,938
Bulletproof V est Partnership G rant 16.607 16,632
T otal U.S. Department of Justice 21,570
U.S. Department of the T reasury
Director Program:
American Rescue Plan (ARPA) 21.027 2,237,194
T otal U.S. Department of the T reasury 2,237,194
T otal F ederal E xpenditures 2,781,352$
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this supplementary information.
ITEM 13
City of Ceres, California
Notes to Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2023
2 1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards inc ludes 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 Principl es, and Audit requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule m ay differ from amounts presented in, or used in the preparation of, the basic financial statements.
2. DESCRIPTION OF MAJOR PROGRAMS
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, No rthern Mariana Islands, and American Samoa), tribal governments, metropolitan cities, counties, and (through states) non-entitlement units of local government (collectively the “eligible entities”) to:
1. Respond to the public health emergency, COVID-19 or its negativ e economic impacts, including providing assistance to househol ds, small businesses, nonprofit s, 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 re duction 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.
3. INDIRECT COST ELECTION
The City has not elected to use the 10% de minimis indirect cos t rate allowed under the Uniform Guidance.
ITEM 13
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
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
Independent Auditor’s Report
The Honorable City Council
City of Ceres
Ceres, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States (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 f und information of the City of Ceres (City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated October 21, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statement s, we considered the City's internal control over financial reporting (internal control) as a basis for 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 expre ssing 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 oper ation 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 w e a k n e s s i s a d e f i c i e n c y , o r 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 p revented, 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 en ough 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 i dentify all deficiencies in in ternal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identif ied. We did identify certain de ficiencies in internal control, described in the accompanying schedule of findings and questioned costs as i tem 2023-001 that we consider to be a material weakness.
ITEM 13
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Cit y's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect.
The City’s Response to Findings
The City’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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.
]]TVcT? \ÇvA
October 21, 2025 JJACPA, Inc.
Dublin, CA
ITEM 13
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
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
Independent Auditor’s Report
The Honorable City Council
City of Ceres
Ceres, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Cer es’s (City) compliance with the types of compliance requirements identified as subject to audit in the OMB 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, 2023. 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, wi th 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, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America (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 Guidan ce 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 o n compliance for each major federal program. Our audit does not provide a legal determination of the City’s comp liance with the compliance requirements referred to above.
ITEM 13
Responsibilities of Management for Compliance
Management is responsible for com pliance 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 reas onable assurance about whether material noncompliance with the compliance requirements referred to above o ccurred, whether due to fraud o r 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 accorda nce with GAAS, Government Auditing Standards , and the Uniform Guidance will al ways detect material noncomplia nce when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, in tentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considere d material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgme nt 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, whethe r due to fraud or error, and design and perform audit procedures responsiv e to those risks. Such proced ures include examining, on a test basis, evidence regarding the City’s com pliance with the compliance re quirements 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 compli ance. 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 pro cedures disclosed instances of n oncompliance 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 2023-002. 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 13
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over complianc e 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 im portant 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 d id 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 opi nion 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 ac tivities, 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, 2023, and the related notes to the financial statements, which collectively c omprise the City’s basic financial statements. We issued our report thereon, dated October 21, 2025, which contai ned 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 respons ibility 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 reconcili ng such information directly to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financial statements themselves, and other additional procedures in 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.
]]TVcT? \ÇvA
October 21, 2025 JJACPA, Inc.
ITEM 13
City of Ceres, California
Schedule of Findings and Questioned Costs
For the year ended June 30, 2023
8 Section I – Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes
Significant deficiency(ies) identified? None reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? None reported
Significant deficiency(ies) identified? None reported
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes
Identification of major programs:
CFDA Number Name of Fed eral Program or Cluster
21.027 Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish
between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? No
ITEM 13
City of Ceres, California
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2023
9 Section II – Financial Statement Findings
Finding 2023-001
Material Weakness of Noncompliance with California Government C ode – Filing Deadline Expiration
Criteria: California Government Code, Section 26909, (a) (2), requires Cities to file an annual audit of the accounts and records with the California State Controller w ithin 12 months of the end of the fiscal year.
Condition: For the year ended June 30, 2023 the City of Ceres (City) did not file an annual audit of the accounts and records with the California State Controller within 12 months of the end of the fiscal year.
Cause: Management of the City has not implemented procedures to meet t he filing requirements outlined in the California Government Code.
Effect: The information reported to the public and other government a gencies is not timely or relevant to current City operations and potential loss of funding.
Recommendation: Management should file the audited financial statements for the year ended June 30, 2023 immediately. Additionally, the City should implement proce dures for meeting the filing requirements outlined in the California Government Code in order to provide timely reporting for future audits.
Responsible Official’s Response : Management concurs with the aud itor’s finding that a material weakness existed due to noncomplia nce with California Government Code Section 26909. The underlying causes included prolonged resource constraints withi n the Finance Department, turnover in key accounting positions, challenges associated with the ERP sy stem implementation, and delays in reconciling certain major balance sheet accounts.
To address these issues, the City engaged an external financial consultant to assist in completing outstanding bank reconciliations and restoring timely financial reporting. Management is also implementing additional corrective measures, including repriori tizing workloads, enhancing oversight of monthly close activities, and establishing standardized reconciliation checklists for all major balance sheet accounts.
Management anticipates that this finding will extend through th e Fiscal Year 2024, Fiscal Year 2025, and possibly Fiscal Year 2026 financial statement reporting cycles, with full resolution expected in Fiscal Year 2027.
ITEM 13
City of Ceres, California
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2023
10 Section III – Federal Award Findings and Questioned Costs
Finding 2023-002 – Timeliness
CFDA Title and Number: Coronavirus State and Local Fiscal Reco very Funds (21.207) Federal Agency: U.S. Department of the Treasury
Pass-through Entity: N/A
Year: 2023
Criteria: Section 200.512(a) of the Uniform Guidance states that an audi t 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 financial audit in a timely manner to 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 Se ction 200.512(a) and potential loss of funding.
Cause: The City did not have policies and procedures in place to complete the financial audit in a timely manner and submit the data collection form before the deadline.
Recommendation: The City should implement policies and procedures to have the financial audit completed and data collection form filed before the deadline.
Responsible Official’s Response and Corrective Action Planned: Management concurs with the auditor’s finding of timeliness due to noncompliance with Section 200.512(a) of the Uniform Guidance.
The underlying causes included prolonged resource constraints within the Finance Department, turnover in key accounting positions, challenges associated with the ERP system implementation, and delays in reconciling certain major balance sheet accounts.
To address these issues, the City engaged an external financial consultant to assist in completing outstanding bank reconciliations and restoring timely financial reporting. Management is also implementing additional corrective measures, including repriori tizing workloads, enhancing oversight of monthly close activities, and establishing standardized reconciliation checklists for all major balance sheet accounts.
Management anticipates that this finding will extend through th e Fiscal Year 2024, Fiscal Year 2025, and possibly Fiscal Year 2026 financial statement reporting cycles, with full resolution expected in Fiscal Year 2027.
ITEM 13
City of Ceres, California
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2023
11 Section IV – Status of Prior Year Audit Findings
See Findings 2023-002 for continuation of prior year finding 2022-001.
Section V – Corrective Action Plan
Provided in Section III above.
ITEM 13
ITEM 13
CITY OF CERES
REPORT ON COMPLIANCE WITH
STANISLAUS COUNTY MEASURE H
FOR FIRE AND POLICE PUBLIC PURPOSES
FOR THE YEAR ENDED JUNE 30, 2023
ATTACHMENT F
ITEM 13
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2023
Table of Contents
Page
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 Balance s - Budget and Actual ................................................................................................................... 11
Note to Supplementary Information .............................................................................................. 12
ATTACHMENT F
ITEM 13
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
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, 2023. 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 st andards 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 regardi ng 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 Sh eet 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 H on a modified accrual basis).
Findings: No exceptions were noted.
d. Determined that personnel time charged to the program were e xpended only for fire and police services.
Findings: No exceptions were noted.
e. Determined that personnel expen ses charged to the program are limited to personnel funded by the Initiative for the purposes stated in d above.
Findings: No exceptions were noted.
ATTACHMENT F
ITEM 13
Page – 2 – Findings (continued)
f. Determined that direct charges to Measure H Funds are not al so 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 Fund s 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.
i. Identified non-compliance with applicable statute, regulatio n, City policy, or Initiative requirements, and any questionable or disallowed amounts received for the period.
Findings: No exceptions were noted.
Had we performed additional proc edures, other matters might hav e 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 go vernmental entities and is not intended to be and should not be used by anyone other than these specified parties.
]]TVcT? \ÇvA
October 3, 2024 JJACPA, Inc.
Dublin, CA
ATTACHMENT F
ITEM 13
FINANCIAL STATEMENTS
3 ATTACHMENT F
ITEM 13
City of Ceres
Measure H Fund
Balance Sheet
June 30, 2023
ASSETS 2023
Assets:
Cash 512,019$
Taxes receivable 827,331
Interest receivable 720
Total assets 1,340,070$
LIABILITIES AND FUND BALANC
E
Liabilities:
Accounts payable 8,387$
Total liabilities 8,387
Fund Balance:
Restricted for fire and police public services 1,331,683 Total fund balance 1,331,683
Total liabilities and fund balance 1,340,070$
The accompanying notes are an integral part of these financial statements. 4 ATTACHMENT F
ITEM 13
City of Ceres
Measure H Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances For the year ended June 30, 2023
2023
REVENUES:
Sales tax 4,814,659$
Use of money and property 7,333
Other revenues 124
Total revenues 4,822,116
EXPENDITURES:
Payroll and related costs 2,614,105
Contractual services 2,550,498
Materials and supplies 781,654
Total expenditures 5,946,257
REVENUES OVER (UNDER)
EXPENDITURES (1,124,141)
OTHER FINANCING SOURCES (USES):
Transfers in -
Transfers out (152,000)
Total other financing sources (uses) (152,000)
Net change in fund balances (1,276,141)
FUND BALANCES:
Beginning of year 2,607,824
End of year 1,331,683$
The accompanying notes are an integral part of these financial statements. 5 ATTACHMENT F
ITEM 13
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2023
Notes to Financial Statements
6 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 financi al statements of the City. The Measure H Fund is used to account for the City’s share of revenues ear ned and expenditures incurred u nder Measure H. The accompanying financial statements are for the Measure H Fund only and are no t 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 re porting 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 gene rally are included on the balance sheet.
Operating statements of governme ntal funds present increases (r evenues 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 r esources received from the half cent sales tax provision of Measure H. These funds are to be used to wards 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 re stricted amounts. Restricted a mounts consist of resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government.
ATTACHMENT F
ITEM 13
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2023
Notes to Financial Statements, Continued
7 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 e xcess 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 investme nts are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily availa ble. Interest earned on investments is allocated to all funds on the basis of monthly cash and investm ent balances. The Measure H Fund, through the City pool, participates in an investment pool manag ed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a porti on of the pool funds in Structured Notes and Asset-Backed Securities (See Note 2D). LAIF’s investm ents are subject to credit risk with the full faith and credit of the State of California collateral izing 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 sta tements in conformity with accounting principles generally accepted in the United States of America requires management to make estima tes and assumptions that affect the reported amounts of assets and liabilities and disclosure of co ntingent 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 i n the City’s cash and investme nt pool that includes all other City funds, which the City Treasurer invests to enhance interest ear nings. The pooled interest earned is allocated to each fund based on average month-end and investmen t balances in these funds. The Measure H Fund had cash and investments balance of $512,019 at June 30, 2023.
ATTACHMENT F
ITEM 13
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2023
Notes to Financial Statements, Continued
8 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 s tates that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral supe rior to those of a general creditor. Thus, collatera l for cash deposits is conside red 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 fi rst trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may w aive 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 arisin g from rising interest rates, the City’s investment pol icy provides that final maturit ies of securities cannot exceed five years.
Specific maturities of investments depend on liquidity needs. A t June 30, 2023, the City’s pooled cash and investments had the following maturities:
Maturity Percentage of Investment
Less than one year 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 ra ting organization (NRSRO) a nd 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 h ave a rating of A or the equiv alent by a NRSRO. Federal instrumentalities must have a rat ing of AAA or the equivalent b y 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 provid es credit standards for its investments.
ATTACHMENT F
ITEM 13
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2023
Notes to Financial Statements, Continued
9 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 w ill 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, 2023, 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 ca sh-flow characteristics (coupon rate, rede mption amount, or stated matu rity) 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 Collatera lized Mortgage Obligations) or credit card receivables.
The City is a voluntary participant in California Local Agency Investment Fund (LAIF), which is regulated by California Governme nt Code Section under the overs ight 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-da y administration of LAIF. The total amount invested by all public agencies as of June 30, 2023 was $25,677,325,266 of which the City had a balance of $4,602,621. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2023 has a portfolio with market valuation of $177,045,532,802 thousand. Of the total invested, 97.22% was invested in non-derivative financial products and 2.78% in structured notes and asset-backed securities. The fair value of the City’s inves tment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share o f the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting rec ords maintained by LAIF, which are recorded on an amortized cost basis.
ATTACHMENT F
ITEM 13
10 SUPPLEMENTARY INFORMATION
ATTACHMENT F
ITEM 13
City of Ceres
Measure H Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the year ended June 30, 2023
Variance
Original Final Positive
Budget Budget Actual (Negative)
REVENUES:
Sales tax 5,311,923$ 5,311,923$ 4,814,659$ (497,264)$ Investment income 6,300 6,300 7,333 1,033 Reimbursements - - 124 124 Total revenues 5,318,223 5,318,223 4,822,116 (496,107) EXPENDITURES:
Payroll and related costs 3,101,009 3,101,009 2,614,105 486,904 Contractual services 2,570,561 2,595,561 2,550,498 45,063 Materials and supplies 828,790 828,790 781,654 47,136 Total expenditures 6,500,360 6,525,360 5,946,257 579,103
REVENUES OVER (UNDER)
EXPENDITURES (1,182,137) (1,207,137) (1,124,141) 82,996 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) (1,276,141)
FUND BALANCES:
Beginning of year 2,607,824
End of year 1,331,683$
11 ATTACHMENT F
ITEM 13
City of Ceres
Measure H Compliance Report
For the year ended June 30, 2023
Note to Supplementary Information
12 A. Budget
An annual budget is adopted by City Council for the special rev enue funds. The budget is the maximum authorization for spendi ng in a fiscal year. An encumbr ance system is used to record commitments and obligations incu rred throughout the year to ens ure 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 a pproved budget are approved by C ity Council. Supplemental appropriations are authorized b y 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 follo wing year’s budget. Outstandin g encumbrances are committed in fund balance. At the fund level, expenditures may not legally exceed appropriations.
ATTACHMENT F
ITEM 13
COUNCIL AGENDA REPORT
CITY COUNCIL
Javier Lopez, Mayor
James Casey, Dist.1
Rosalinda L. Vierra, Dist. 2
Cerina Otero, Dist. 3
Daniel A. Martinez, Dist. 4
MEETING DATE: October 27, 2025
TO: Mayor and City Council
FROM: Douglas D. Dunford, City Manager
CONTACT: Douglas D. Dunford, City Manager
[email protected], (209) 538-5751
SUBJECT: Resolution No. 2025-XXX, Adopting the Council Donation Policy
RECOMMENDED COUNCIL ACTION:
Staff recommends Council adopt the Council Donation Policy which lays out the process of councilmembers donating their allocated amount to a non- profit organization that benefits the Ceres community of their choice.
I. BACKGROUND:
In the past, the City of Ceres donated funds to various events held within the community.
Due to budgetary restraints, those funds were eliminated from the budget, and the Council Donation Policy has been created to take their place.
At the June 23, 2025, Regular City Council meeting, Council requested staff develop a process on how the donation funds will be distributed.
Staff has developed a Council Donation Policy (Policy) which outlines how the process will function going forward. The Policy provides Council and staff with clear directions in considering and responding to requests for donations.
The Council Donation Policy can be found under Attachment B. Council will also be required to fill out a Donation Request Form (see Attachment C). Lastly, once funds have been approved, the organization accepting the funds must fill out the Donation Award Agreement (see Attachment D).
II.
REASONS FOR RECOMMENDATION:
The proposed policy requires the proper documentation to be filed so staff can prepare an agenda item for each donation request and for the item to be processed with the Finance Department.
ITEM 14
III. FISCAL IMPACTS:
Funding for the City Council donations have been included in the adopted FY 26 City Council budget, and no budget amendment is necessary. Each fiscal year, the allowable budget for City Council donations will not exceed $6,000 and will be allocated as follows:
• Mayor - $2,000 per Fiscal Year
• City Council - $1,000 per Councilmember per Fiscal Year
The mayor and council may break up their allocation into two equal donations (i.e. the mayor may give two (2) $1,000 donations and a councilmember may give two (2) $500 donations. All donation requests will be brought before the City Council for approval.
IV. EXISTING POLICY / RELATIONSHIP TO STRATEGIC PLAN:
N/A
V. POLICY ALTERNATIVES:
The Council could decide on one of the options below:
1) Accept the proposed policy as it is
2) Accept the proposed policy with modifications
3) Reject the proposed policy
VI. INTERDEPARTMENTAL COORDINATION:
Staff collaborated with the City Attorney and the Finance Office in developing the Policy.
VII. PUBLIC PARTICIPATION:
N/A
VIII. ENVIRONMENTAL REVIEW:
N/A
IX. STEPS FOLLOWING APPROVAL:
Based upon Council’s decision, staff will implement the Policy or make any requested edits to the Policy.
Approved by: ___________________
Douglas D. Dunford
City Manager
Attachments:
1. Attachment A – Resolution
2. Attachment B – Council Donation Policy
3. Attachment C – Donation Request Form
4. Attachment D – Donation Award Agreement
ITEM 14
ATTACHMENT A
RESOLUTION NO. 2025-XXX
ADOPTING THE COUNCIL DONATION POLICY
THE CITY COUNCIL
City of Ceres, California
WHEREAS, in the past, the City of Ceres donated funds to various events held within the community; and
WHEREAS, due to budgetary restraints such funds were replaced with Council donation funds; and
WHEREAS, at the June 23, 2025, Regular City Council meeting, Council requested staff develop a process on how the Council donation funds will be distributed; and
WHEREAS, staff has developed a Council Donation Policy (Policy) which outlines how the process will function going forward; and
WHEREAS, the Council Donation Policy has been attached to this Resolution as Exhibit A; and
WHEREAS, Council will also be required to fill out a Donation Request Form (Exhibit B) and once funds have been approved, the organization accepting the funds must fill out the Donation Award Agreement (Exhibit C).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ceres does hereby adopt the Council Donation Policy.
PASSED AND ADOPTED by the Ceres City Council at a regular meeting thereof held on the 27
th day of October 2025, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
________________________________
Javier Lopez, Mayor
ATTEST:
_______________________________
Fallon Martin, City Clerk
ITEM 14
ITEM 14
ATTACHMENT B
Last Updated: 10/14/2025
4926-5871-8320, v. 1
COUNCIL DONATION POLICY
Public Purpose
The City of Ceres recognizes and appreciates the value of local organizations who provide community services and programs that benefit the community and its residents.
These programs present valuable benefits and consideration while fulfilling public purposes that the City Council and each member deem substantial and material value to Ceres. All donations of City funds to non- profit organizations shall be made through the application process as outlined in this Policy, the purpose of which is to:
• E stablish a City Council Donation Policy and guidelines for disbursement of discretionary funds approved by the City Council to support programs and services that benefit the Ceres community;
• P rovide council and staff with clear directions in considering and responding to requests for assistance; and
• S treamline the City’s donation procedures and ensure transparency in the use of public funds.
Donation Budget
Each fiscal year, the allowable budget for City Council donations will not exceed $ 6,000 and will be allocated as follows:
• Mayor - $2,000 per Fiscal Year
• City Council - $1,000 per Councilmember per Fiscal Year The mayor and council may break up their allocation into two equal donations (i.e. the mayor may give two (2) $1,000 donations and a councilmember may give two (2) $500 donations . All donation requests will be brought before the City Council for approval.
The mayor and c ouncilmembers shall submit their forms for requested donation expenditures to the Finance Department . Donation requests must be submitted, at a minimum, four weeks in advance of the council meeting. Any funds that remain unallocated by June 1st of each year will not be carried over to the next fiscal year.
Requirements / Public Benefit
Requests for donations must be submitted in writing using the Donation Request Form .
By law, all public funds, no matter how awarded, must be used for a public purpose. In general, a public purpose is defined as an activity or service that is open and accessible to all public members regardless of race, creed, gender, sexual orientation, r eligious ITEM 14
ATTACHMENT B
Last Updated: 10/14/2025
4926-5871-8320, v. 1
affiliation, etc., without restriction. It is imperative that the entity receiving funding through this program demonstrates the benefit that funded programs or services will have on the Ceres community.
To be an eligible donation, the organization to which the donation is made must fulfill the requirements set forth below. The City Manager , or his/her designee, shall review the request for donations and has the ultimate decision- making authority on whether the organization satisfies these requirements:
• A non-profit organization as described by the Internal Revenue Sections such as 501 (c)(3) or an intergovernmental agency.
o If a 501 (c)(3), only non- profit organizations that provide a community benefit to the City of Ceres.
• The organization must be non-discriminatory, and non-political in nature. • The organization must have a local affiliation or benefit within Ceres. F or example:
o The organization complements or enhances a service the City of Ceres also provides; or
o The organization provides a service that benefits the community but which the City does not provide.
The donation may not personally benefit the mayor, a councilmember, staff member, or any relative of same. The donations will not be made in the name of the individual official but will be donations by the City of Ceres.
This policy does not apply to payments for staff and/or Council to attend events held by non-profits (i.e. the purchase of tickets or tables for local events).
Post Funding Requirements
If the City has reason to believe the funds were not expended in accordance with this Policy, the awardee will be required to refund the award. The City reserves the right to request additional backup information to substantiate how funds received from the City were expended. Failure to provide proper documentation, and/or to utilize the funds for the intended purpose may jeopardize future funding opportunities. Should the City determine the funds were not used for the approved public purpose, City may elect to file a small claims action against awardee seeking reimbursement of the funds or use any other lawful means available to obtain reimbursement of public funds.
The Finance Department will maintain the pertinent records for the City Council Discretionary Funds, which are public records.
ITEM 14
ATTACHMENT C
Last Updated: 10/14/2025
Please Return To:
Finance Office
2220 Magnolia St.
Ceres, CA 95307
209.538.5757
DONATION REQUEST FORM
Name of Organization: ____________________________________________________
Organization’s Address (same as W9 form): ____________________________________
City: ________________________ State: ______ Zip Code: ________________
Contact Person: __________________________________________________________
Contact Person’s Phone Number: ____________________________________________ Contact Person’s Email Address: ____________________________________________
Tax ID of Non-Profit Receiving Donation: ______________________________________
Total Amount Requested: __________________________________________________
How will the donation be used? The donation must primarily serve a public purpose. _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________
What is the benefit to the Ceres community?
_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________
__________________________________________ ________________________ Requested By (sign & print): Date
__________________________________________ ________________________ Approved By (sign & print): Date
Application Request Forms must be submitted no later than four weeks in advance of the council meeting they will be agendized for.
All requests must provide a copy of the non-profit’s determination letter provided by the IRS.
ITEM 14
ITEM 14
ATTACHMENT D
Last Updated: 10/06/2025
Please Return To:
Finance Office
2220 Magnolia St.
Ceres, CA 95307
209.538.5757
DONATION AWARD AGREEMENT
Name of Organization: ____________________________________________________
Organization’s Address (same as W9 form): ____________________________________
City: ________________________ State: ______ Zip Code: ________________
Contact Person: __________________________________________________________
Contact Person’s Phone Number: ____________________________________________
Tax ID of Non-Profit Receiving Donation: ______________________________________
Total Amount Awarded: __________________________________________________
The City of Ceres hereby awards {$XXXX.XX} to {insert organization name} to be used for the following approved public purpose, which benefits the Ceres community as follows:
_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________
Organization understands it must use the funds awarded as approved by the City of Ceres because public monies can only be used for public purposes. Should the City become aware Organization failed to adhere to the Donation Policy, it may elect to seek reimbursement of funds using lawful means, including filing a small claims action in Superior Court. By accepting this award, Organization and its representatives warrant it will use the funds as approved by and in accordance with the City of Ceres Donation policy.
_______________________________________________ ____________________ Signature of Organization Representative (name and title) Date
ITEM 14
ITEM 14