Agenda, regular meeting, first session — Chowchilla City Council, April 9, 2024 (part 1 of 2)

AGENDA
City Council Meeting Council Chamber, Chowchilla City Hall 130 S. Second Street, Chowchilla, CA 93610
Tuesday, April 9, 2024
No Closed Session
Open Session: 4:00 p.m.

Agendas for all City Council meetings are posted at least 72 hours prior to the meeting in the kiosk just outside of City Hall, 130 S. Second St., Chowchilla, CA 93610.

The City of Chowchilla complies with the Americans with Disabilities Act (ADA of 1990). The Council Chambers is accessible to the physically disabled. If you need special assistance, please call (559) 665- 8615, ext. 102 at least 4 days prior to a regular meeting, 1 day for a special meeting.

California Levine Act Statement:

California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Chowchilla City Council Member from participating in any action related to a license, permit, contract or entitlement for use application if he or she receives any political contributions totaling more than $250 within the previous twelve months, and for twelve months following the date of a final decision, from the business/board or applicant.

The Levine Act also requires a member of the Chowchilla City Council who has received such a contribution to disclose the contribution on the record of the proceeding.

CALL TO ORDER/ROLL CALL
Mayor: Kelly Smith
Mayor Pro Tem: Waseem Ahmed
Council Members: Ray Barragan, John Chavez, Jeff Troost City staff and contract employees present will be recorded in the minutes.

CONSIDERATION OF APPROVAL OF AGENDA
Additions and/or Deletions:

OPEN SESSION – 4:00 PM

PLEDGE OF ALLEGIANCE
INVOCATION:

PRESENTATIONS/WORKSHOP - Section 1

1.1 Proclamation: Sexual Assault Awareness Month

1.2 Centennial Clock Dedication

PUBLIC ADDRESS
This time is reserved for members of the audience to address the City Council on items of interest that are not on the agenda and that are within the subject matter jurisdiction of the Council.

City Council Meeting AGENDA April 9, 2024
It is recommended that speakers limit their comments to no more than 3 minutes each and it is requested that no comments be made during this period on items on the Agenda. Speakers are not allowed to cede their public comment time.

Members of the public who are joining the meeting via Zoom and would like to address the Council on items on the agenda should follow the policy on page 3 of this agenda packet.

The Council is prohibited by law from taking any action on matters discussed that are not on the agenda.

No adverse conclusions should be drawn if the Council does not respond to public comment at this time.

COUNCIL AND STAFF VERBAL REPORTS – Section 2

2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc

2.2 STAFF VERBAL REPORTS
CONSENT CALENDAR – Section 3
All items listed under Consent Calendar are considered to be routine and will be enacted by one motion. For discussion of any Consent Item, it will be made a part of the Regular Agenda at the request of any member of the City Council or any person in the audience.

3.1 Approval of the March 12, 2024 City Council Meeting Minutes (McClendon)

3.2 Approval of the March 21, 2024 Special City Council Meeting Minutes (6pm) (McClendon)

3.3 Approval of the March 21, 2024 Special City Council Meeting Minutes (6:30pm) (McClendon)

3.4 Consideration and Acceptance of the February 2024 Financial Statements (Williams)

3.5 Consideration and Acceptance of the March 2024 Check Register Report (Williams)

3.6 Consideration and Adoption of an Ordinance Amending Sections 8.12.020, 8.12.060,

8.12.070, and 8.12.080 of Chapter 8.12 – Weeds, of Title 8 of the Chowchilla Municipal Code (Gaumnitz)

3.7 Consideration and Approval of the Investment Policy Update (Williams)

3.8 Consideration and Adoption of a City Council Resolution Approving the Amendment to the Application for Local Transportation Funds (LTF) for Fiscal Year 2022/23 and 2023/24, and Authorizing the City Administrator or Designee to Execute and Submit the Amendments to MCTC (Williams)

3.9 Consideration and Adoption of a City Council Resolution Accepting a Land Donation from John and Marjolien Warkentin, Authorizing the City Administrator to Execute all Related Documents Thereto (Hamilton)

3.10 Consideration and Adoption of a City Council Resolution Approving a Right-of-Entry and License Agreement with Rancho Calera LLC, Allowing the City to Enter Upon, Construct, and Install a Test Well Within the Rancho Calera Development Area, Authorizing the City Administrator to Execute the Agreement (Hamilton) City Council Meeting AGENDA April 9, 2024
PUBLIC HEARINGS – Section 4

4.1 Public Hearing Regarding Demographic Process to Draw District Boundaries; Fist Public Hearing to Gather Community Input Regarding Composition of District Boundaries (Lerner)
DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6

6.1 Presentation from Demographer Regarding the Transition to By-District Elections (Lerner)

6.2 Presentation of the City’s Fiscal Year 2022-2023 Financial Statement Audit (Williams)

6.3 Consideration and Adoption of a City Council Resolution Awarding the Contract for Preparation of the Project Environmental Impact Report (PEIR) to Support the City’s Industrial Specific Plan Bid to Precision Engineering in the Amount of $189,585; Authorizing the Task Order to Peer-Review the PEIR to QK in the Amount of $48,900; and, Authorizing the City Administrator or Designee to Execute all Related Documents Thereto (Hamilton)

6.4 Consideration and Adoption of a City Council Resolution Approving a Measure N Budget Amendment to Purchase License Plate Reader Cameras (Denny)

6.5 Consideration and Adoption of a City Council Resolution Approving a Memorandum of Agreement for Fire and Emergency Services and a Site Use Agreement Between the City of Chowchilla and the Chowchilla Fire Department, Inc., a California Nonprofit Corporation (Gaumnitz)

6.6 Consideration and Adoption of a City Council Resolution Authorizing the Submittal of an Application to the California State Department of Housing & Community Development for Funding Under the HOME Investment Partnership Program (Hamilton)
ANNOUNCEMENTS – Section 7
APR 17 PLANNING COMMISSION MEETING CANCELLED
APR 20 CPD K9 DINNER, CHOWCHILLA FAIRGROUNDS, 5:30PM
APR 23 CITY COUNCIL MEETING, CITY HALL, 4PM

ADJOURNMENT
I, Joann McClendon, CMC, City Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted at Chowchilla City Hall, 130 S Second Street, Chowchilla, CA and made available for public review on this 4th day of April, 2024 at or before 5:00pm.

Joann McClendon, CMC, City Clerk

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Item 3.1

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THE AGENDA

MINUTES
City Council / Redevelopment Successor Agency
Joint Meeting
Council Chamber, Chowchilla City Hall
130 S. Second Street, Chowchilla, CA 93610
Tuesday, March 12, 2024
No Closed Session ~ Open Session: 4:00 pm.

CALL TO ORDER/ROLL CALL
Mayor/Chair: Kelly Smith
Mayor Pro Tem/Vice Chair: Waseem Ahmed (4:12 p.m.)
Council/Board Members: Ray Barragan, John Chavez, Jeff Troost City staff and contract employees present: City Administrator Rod Pruett, City Attorney Mary Lerner, Police Chief Jeff Palmer, Fire Chief Fred Gaumnitz, Public Works Director Jason Rogers, Community & Economic Development Director Mark Hamilton, Finance Director Kerri Williams (remote), Deputy Director of Recreation & Community Engagement Stacy Wisener, IT System Administrator Carlos Berrocal, City Clerk Joann McClendon

CONSIDERATION OF APPROVAL OF AGENDA
Additions and/or Deletions:

OPEN SESSION – 4:01 pm

PLEDGE OF ALLEGIANCE
INVOCATION: Pastor Rick Pruitt
PRESENTATIONS/WORKSHOP - Section 1

1.1 Oath of Office: Chowchilla Volunteer Firefighter Alec Pierce

PUBLIC ADDRESS
A group of people addressed the City Council requesting a cease-fire proclamation.

COUNCIL AND STAFF VERBAL REPORTS – Section 2

2.1 COUNCIL VERBAL REPORTS
Legislative, Collaborative Agency, Ad Hoc
Council Member Chavez attended Rotary Dinner.

Council Member Troost Citizens Action Committee for the Valley Air District where they talked about state budget shortfalls and how they will affect their programs.

Mayor Smith also attended the Rotary Dinner, Portuguese Coronation Dinner, and opening day for Chowchilla Girl Softball.

2.2 STAFF VERBAL REPORTS
Police Chief Palmer reported out the department’s latest stats sine the last meeting it was reported out. He personally thanked the Public Works crew, Mario Meza, Brandon Strang and City Council Meeting MINUTES March 12, 2024
George Rocha who helped him and Lieutenant Denny with applying the decomposed granite around the police station.

Fire Chief Gaumnitz reported on the Homeland Security Grant which was awarded to the Department, allowing them to order two RIP packs. The Department is utilizing Lexipol for their policies, allowing staff to receive policies, review them and acknowledge them.

Public Works Director Rogers reported that their annual Palm Tree trimming along Robertson Blvd. was completed last week. Clock project update – staff prepared the location and trimmed back the bushes for trenching for the electrical and placing the stub out. The new pad for the clock will be poured tomorrow with electrical to follow and then installation of the clock. We are getting closer to completion of the project. And finally, we have partnered with Cornerstone Church for a volunteer event later this month. The dates will be March 25 – 27th from 8am to 11:30 am. Day 1 will plant new trees at the Ed Ray Parking Lot, Day 2 will apply mulch to the Chowchilla Service Clubs sign and Day 3 will apply rubberized bark to the Ed Ray Playground.

Director Rogers Received question from Mayor pro tem Ahmed asking if Caltrans fixed and replaced the on-ramp light and fixed the potholes that I had asked them to fix. The answer was yes.

Mayor Smith asked about the rapid flashing beacon signs being installed on Ventura. It was noted that these signs are part of a future Highway Safety Improvement Program (HSIP) that is currently 60% designed and will likely go out to bid next year. Public works is currently working with PD for the purchase and installation of speed feedback signs.

Community & Economic Development Director Hamilton reported out on the HCD Housing Element question, in which there is 120 days to give back a response; his department continues to receive various permit applications; more activity on East Robertson for various projects.

Appointments are being made for the upcoming ICSC conference.

Deputy Director of Recreation & Community Engagement Wisener reported on the Easter event. She is working with Madera County Arts Council to bring programs to the City, stand alone and in coordination with our events. She gave an update on sports programs and attended the ribbon cutting for clock around beginning of April.

City Clerk Mcclendon reminded everyone to submit their Form 700 forms before the April 2, 2024 deadline.

City Administrator Pruett he will be attending a Measure T Steering Committee meeting with MCTC in Madera. There will be a Special meeting towards the end of this month that is focusing on Measure T information. Met with the Finance Director to go over mid-year budget. He met with Autozone representatives who are on track on opening around July, phasing in employees and holding a job fair. The Chowchilla Boulevard Rehabilitation is out to bid. Met with Measure N consultants and had an ad hoc meeting set up for later this week. Attended a continuing education class. Met with PG&E; met with Wulf Hansen, to go over some investments; met with Rancho Calera are moving along with tentative maps, pushing one into a final map to get ready to be purchased and recorded.

CONSENT CALENDAR – Section 3

3.1 Approval of the February 27, 2024, City Council Meeting Minutes (McClendon)

3.2 Consideration and Acceptance of the February 2024 Check Register (Williams) City Council Meeting MINUTES March 12, 2024

3.3 Consideration and Adoption of a City Council Resolution Declaring Results of Special Election for Community Facilities District No. 2023-1 (Replacement of CFD 2006-1) and Directing Actions Related Thereto (McClendon)

3.4 Consideration and Adoption of a Redevelopment Successor Agency Resolution Recommending to the Madera County Oversight Board to Authorize the Executive Director of the Chowchilla Redevelopment Successor Agency to Sign the Closing Statement and Other Related Documents Regarding the Disposition of APN 002-250- 053, Located on Chowchilla Boulevard, and Close Escrow (Hamilton) Motion by Council Member Barragan, seconded by Mayor Pro Tem Ahmed to Approve the Consent Calendar as Presented. Motion passed unanimously by roll call vote.

PUBLIC HEARINGS – Section 4

4.1 Introduction of an Ordinance Amending Section 8.12 – Weeds, of the Chowchilla Municipal Code (Gaumnitz)
Mayor Smith opened the public hearing at 4:50 p.m.

No one came forward for or against the item.

Mayor Smith closed the public hearing at 4:51 p.m.

Motion by Council Member Troost, Seconded by Mayor Pro Tem Ahmed to Accept the Introduction of an Ordinance Amending Section 8.12 – Weeds, of the City of Chowchilla Municipal Code. Motion passed unanimously by roll call vote.

4.2 Consideration and Adoption of a City Council Resolution Authorizing and Directing Submission of an Application to the State of California Prohousing Designation Program (Hamilton)
Mayor Smith opened the public hearing at 4:55 p.m.

Spoke: Terry Solis from Self-Help.

Mayor Smith closed the public hearing at 4:58 p.m.

Motion by Mayor Pro Tem Ahmed, Seconded by Council Member Barragan to Approve Council Resolution # 05-24, Authorizing and Directing Submission of an Application to the State of California Prohousing Designation Program. Motion passed unanimously by roll call vote.

DEFERRED BUSINESS – Section 5
NEW BUSINESS – Section 6

6.1 Consideration and Adoption of a City Council Resolution Accepting General Plan Annual Progress Report and Annual Housing Element Progress Report for the 2023 Year (Hamilton)
Motion by Council Member Troost, Seconded by Council Member Barragan to Approve City Council Resolution # 06-24, Accepting General Plan Annual Progress Report and Annual Housing Element Progress Report for the 2023 Year. Motion passed unanimously by roll call vote.

City Council Meeting MINUTES March 12, 2024

6.2 Presentation – Fiscal Year 2023/2024 Mid-Year Budget Review (Williams) ANNOUNCEMENTS – Section 7
MARCH 16 CITY’S EASTER EGG SCRAMBLE, EDWARD RAY PARK, 9:00 AM – NOON MARCH 20 PLANNING COMMISSION MEETING, COUNCIL CHAMBER, 5PM MARCH 21 SPECIAL CITY COUNCIL MEETING, COUNCIL CHAMBER, 6PM MEASURE T SPECIAL MEETING, COUNCIL CHAMBER, 6:30-8PM
MARCH 26 CITY COUNCIL MEETING CANCELLED
APRIL 9 CITY COUNCIL MEETING, COUNCIL CHAMBER, 4PM

ADJOURNMENT
Mayor Smith Adjourned the March 12, 2024 City Council Meeting at 5:17 p.m.

ATTEST: APPROVED:

Joann McClendon, CMC, City Clerk Mayor Kelly Smith
Item 3.2

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THE AGENDA

MINUTES
Special City Council Meeting Council Chamber, Chowchilla City Hall 130 S. Second Street, Chowchilla, CA 93610
Thursday, March 21, 2024
Open Session: 6:00 pm.

CALL TO ORDER/ROLL CALL- 6:03 p.m.

Mayor: Kelly Smith
Mayor Pro Tem: Waseem Ahmed
Council Members: Ray Barragan, John Chavez, Jeff Troost City staff and contract employees present: City Administrator Rod Pruett, City Attorney Mary Lerner, Public Works Director Jason Rogers, IT System Administrator Carlos Berrocal, City Clerk Joann McClendon
OPEN SESSION – 6:04 p.m.

PLEDGE OF ALLEGIANCE
INVOCATION: John Abshire
NEW BUSINESS - Section 1

1.1 Consideration and Adoption of a City Council Resolution to Initiate a Transition to a District-Based Election System (Lerner)
Spoke:

Jacob Sandoval
Rocio
Josue Diaz
Dina Gonzalez Pina
Motion by Council Member Barragan, Seconded by Council Member Chavez to Approve City Council Resolution #07-24, to Initiate a Transition to a District-Based Election System. Motion passed unanimously by roll call vote.

ADJOURNMENT
Mayor Smith Adjourned the March 21, 2024 Special City Council Meeting at 6:14 p.m.

ATTEST: APPROVED:

Joann McClendon, CMC, City Clerk Mayor Kelly Smith
Item 3.3

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THE AGENDA

MINUTES
Chowchilla City Council

SPECIAL MEETING
Council Chamber, Chowchilla City Hall
130 S. Second Street, Chowchilla, CA 93610
Thursday, March 21, 2024
CALL TO ORDER/ROLL CALL: 6:32 p.m.

TOWN HALL PRESENTATION
• Measure T Educational Presentation
Kendall Flint, Regional Director of Communications & Strategic Planning, DKS, presented.

Spoke:

Mike Rouch
Susan White

ADJOURNMENT
Mayor Smith Adjourned the Special City Council Meeting at 7:32 p.m.

ATTEST: ADJOURNED:

Joann McClendon, CMC, City Clerk Mayor Kelly Smith

REPORT TO THE CITY COUNCIL
Item 3.4

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THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: Consideration of Monthly Financial Statements
PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: February 2024 Budget vs Actual and Balance Sheet

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Approve the February 2024 Financial Statements shown in the attachment.

BACKGROUND:

Staff provides Council with monthly financial information as an ongoing financial status update.

REASON FOR RECOMMENDATION:

The monthly financial statements consist of a Budget vs Actual and a Balance Sheet for the General Fund. The Budget vs Actual shows the current Month (Period Activity) and current Year (Fiscal Activity) Revenues and Expenses by Department in summary form compared to the current year Original and Current budgets. The Balance Sheet shows the Assets, Liabilities and Fund Balance at the time the report is generated. This provides an overview of cash, amounts owed to the City, amounts the City owes and the fund balance at a specific point in time.

The financial statements are being presented as an overview of the City’s finances and are not meant to be a comprehensive in-depth review. As a reference to compare to the percent remaining column in the report, the percentage of the year remaining 33.33%.

If the percent remaining column for Revenues is higher than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant. If the percent remaining column for Expenses is lower than the above-mentioned percentage, that is an unfavorable variance and should be explained if significant.

If there are questions regarding the actual amounts or budget vs actual variances, please forward your questions to me in enough time before the meeting for staff to research them.

FISCAL IMPACT:

Revenues
General Administration- Property tax and VLF, which are 2 of our biggest revenues, are only received 2 times a year in February and May, we have received our 1st distribution a little earlier than normal. It came in a little higher than budgeted for. We are teetered which means we do not have to worry about delinquencies, because the County pays us and goes after the delinquencies themselves. Sales tax payments run a couple months behind and we have yet to receive January’s payment. Sales tax is our 2nd largest revenue.

Police Department- Budgeted revenue is from school reimbursements for SRO service, we have received the school’s payment as they are being billed annually in September now. Also, it has $541k Transfer-in from Measure N for the RIMS Software and additional equipment that will be transferred at the end of the year. It also included recruitment and retention of employees that has already been transferred for the year. Revenues are showing higher than usual, as they received a COPS Grant for $186k, insurance proceeds, and animal shelter donations that were not anticipated. This was adjusted at mid-year and will reflect on March’s financial statements.

Fire Department- This revenue is from transfers-in from Measure N for the fire station expansion project Phase 2 that will be completed at the end of the year.

Community & Economic Development- This will fluctuate as building permits are pulled. We budgeted for the following projects like Rancho Calera, Montgomery Farms, Solar Permits, and various other projects within the City. So far, we have Century Communities that has completed their portion of Montgomery Farms and Self Help building their part of the Montgomery Farms lots. We still have other miscellaneous permits for other items that are happening as well. There is also $85k of grant revenues that we have not fully received as of now.

Parks & Facilities- $140k of this is from a grant that we have not spent yet so we have not requested reimbursements. The rest is overhead allocations from the LLMD that happen at the end of the year.

Community Relations- Revenues are from sports program reimbursements, park pavilion rentals and donations.

Expenses
All departments expenses are within the normal range or better right now ALTERNATIVES:

Pull the item for further discussion
ACTIONS FOLLOWING APPROVAL:

None
3/11/2024 8:21:01 AM Page 1 of 3
My Budget Report
Chowchilla, CA Group Summary
For Fiscal: 2023-2024 Period Ending: 02/29/2024
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 1600 - General Administration
Revenue 9,555,653.00 10,158,421.00 291,339.03 5,175,858.16 -4,982,562.84 49.05% Expense 287,321.00 305,278.00 1,171.28 143,405.12 161,872.88 53.02% Dept: 1600 - General Administration Surplus (Deficit): 9,268,332.00 9,853,143.00 290,167.75 5,032,453.04 -4,820,689.96 48.93% Dept: 1605 - City Council
Revenue 0.00 3,413.00 284.40 2,133.00 -1,280.00 37.50%
Expense 99,195.00 102,608.00 5,120.89 50,180.76 52,427.24 51.09% Dept: 1605 - City Council Surplus (Deficit): -99,195.00 -99,195.00 -4,836.49 -48,047.76 51,147.24 51.56% Dept: 1610 - City Clerk
Revenue 0.00 0.00 0.00 127.59 127.59 0.00%
Expense 283,433.00 283,433.00 15,084.22 144,289.69 139,143.31 49.09% Dept: 1610 - City Clerk Surplus (Deficit): -283,433.00 -283,433.00 -15,084.22 -144,162.10 139,270.90 49.14% Dept: 1615 - City Attorney
Expense 190,000.00 190,000.00 29,376.09 138,826.43 51,173.57 26.93% Dept: 1615 - City Attorney Total: 190,000.00 190,000.00 29,376.09 138,826.43 51,173.57 26.93% Dept: 1705 - General Services
Revenue 0.00 0.00 0.00 255.41 255.41 0.00%
Expense 1,794,311.00 1,793,192.00 24,705.50 937,933.43 855,258.57 47.69% Dept: 1705 - General Services Surplus (Deficit): -1,794,311.00 -1,793,192.00 -24,705.50 -937,678.02 855,513.98 47.71% Dept: 1710 - City Administration
Revenue 0.00 0.00 0.00 127.59 127.59 0.00%
Expense 456,348.00 456,348.00 19,472.02 230,551.60 225,796.40 49.48% Dept: 1710 - City Administration Surplus (Deficit): -456,348.00 -456,348.00 -19,472.02 -230,424.01 225,923.99 49.51% Dept: 1712 - City Property - Rents
Revenue 150,908.00 150,908.00 7,880.96 115,702.84 -35,205.16 23.33% Expense 55,196.00 80,361.00 18.63 60,867.63 19,493.37 24.26% Dept: 1712 - City Property - Rents Surplus (Deficit): 95,712.00 70,547.00 7,862.33 54,835.21 -15,711.79 22.27% Dept: 1720 - Finance Department
Revenue 3,211.00 3,211.00 994.46 4,148.06 937.06 29.18% Expense 882,598.00 880,752.00 68,512.22 552,427.30 328,324.70 37.28% Dept: 1720 - Finance Department Surplus (Deficit): -879,387.00 -877,541.00 -67,517.76 -548,279.24 329,261.76 37.52% Dept: 2610 - Police Department
Revenue 817,947.00 910,451.00 55,648.26 919,992.10 9,541.10 1.05% Expense 4,976,766.00 5,203,175.00 283,212.35 3,159,590.53 2,043,584.47 39.28% Dept: 2610 - Police Department Surplus (Deficit): -4,158,819.00 -4,292,724.00 -227,564.09 -2,239,598.43 2,053,125.57 47.83% Dept: 2705 - Fire Department
Revenue 1,317,366.00 1,444,719.00 42,650.60 131,439.57 -1,313,279.43 90.90% Expense 1,669,053.00 1,824,574.00 22,997.08 506,341.75 1,318,232.25 72.25% Dept: 2705 - Fire Department Surplus (Deficit): -351,687.00 -379,855.00 19,653.52 -374,902.18 4,952.82 1.30% Dept: 4705 - Community & Economic Development
Revenue 761,346.00 761,346.00 51,577.99 375,534.56 -385,811.44 50.67% Expense 1,530,460.00 1,530,460.00 53,890.33 654,688.68 875,771.32 57.22% Dept: 4705 - Community & Economic Development Surplus (Deficit): -769,114.00 -769,114.00 -2,312.34 -279,154.12 489,959.88 63.70% Dept: 6610 - Community Pool (OLD)
Revenue 1,500.00 1,500.00 0.00 1,363.69 -136.31 9.09%
Expense 24,577.00 24,577.00 0.00 9,825.18 14,751.82 60.02% Dept: 6610 - Community Pool (OLD) Surplus (Deficit): -23,077.00 -23,077.00 0.00 -8,461.49 14,615.51 63.33% My Budget Report For Fiscal: 2023-2024 Period Ending: 02/29/2024 3/11/2024 8:21:01 AM Page 2 of 3
Fiscal
Activity
Variance
Favorable
(Unfavorable)
Period
Activity Account Typ…
Current
Total Budget
Original
Total Budget
Percent
Remaining
Dept: 6615 - Senior Services
Expense 44,009.00 44,148.00 1,158.80 21,836.01 22,311.99 50.54% Dept: 6615 - Senior Services Total: 44,009.00 44,148.00 1,158.80 21,836.01 22,311.99 50.54% Dept: 6620 - Parks & Facilities
Revenue 199,730.00 289,033.00 0.00 30,062.40 -258,970.60 89.60% Expense 709,542.00 917,316.00 32,391.73 425,619.19 491,696.81 53.60% Dept: 6620 - Parks & Facilities Surplus (Deficit): -509,812.00 -628,283.00 -32,391.73 -395,556.79 232,726.21 37.04% Dept: 6625 - Community Relations
Revenue 36,100.00 36,100.00 1,644.00 28,184.80 -7,915.20 21.93% Expense 243,165.00 265,587.25 10,364.17 155,728.18 109,859.07 41.36% Dept: 6625 - Community Relations Surplus (Deficit): -207,065.00 -229,487.25 -8,720.17 -127,543.38 101,943.87 44.42% Report Surplus (Deficit): -402,213.00 -142,707.25 -115,455.61 -407,181.71 -264,474.46 -185.33% My Budget Report For Fiscal: 2023-2024 Period Ending: 02/29/2024 3/11/2024 8:21:01 AM Page 3 of 3
Fund Summary
Fiscal
Activity
Variance
Favorable
Fund (Unfavorable)
Period
Activity
Current
Total Budget
Original
Total Budget
100 - General Fund -402,213.00 -142,707.25 -115,455.61 -407,181.71 -264,474.46 Report Surplus (Deficit): -402,213.00 -142,707.25 -115,455.61 -407,181.71 -264,474.46 3/11/2024 8:19:11 AM Page 1 of 1
My Balance Sheet
Chowchilla, CA Account Summary
As Of 02/29/2024
Account Name Balance
Fund: 100 - General Fund
Assets
100-0100-0201 Petty Cash 500.00
100-0100-0202 Pre-Paid Postage Account 4,457.20
100-0100-0206 Cash Drawer 1,700.00
100-0100-0219 Lease Receivable 135,233.32
100-0100-0221 A/R - Non Governmental 20.46
100-0100-0222 A/R - Intergovernmental 27,175.52
100-0100-0224 A/R MODULE ONLY RECEIVALBLES 124,936.23
100-0100-0225 Accounts Receivable-RDA -24.89
100-0100-0226 Advance to Other Funds 410,031.56
100-0100-0227 Liens Receivables General Fund 168,396.00 100-0100-0228 Pending Charges or Refunds -1.00
100-0100-0230 Accounts Receivable-Utilities 101.91
100-0100-1900 Claim On Cash 8,793,733.69
Total Assets: 9,666,260.00 9,666,260.00
Liability
100-0200-0422 Bonds for Work-Refundable 2,000.00
100-0200-0425 Use Sale Tax 132.91
100-0200-0480 Deferred Revenue 162,921.75
100-0200-0482 Unavailable Lease Revenue 76,235.22
100-0200-0499 Payroll Correction -0.93
100-0200-2901 Accounts Payable Pending 145,532.92
Total Liability: 386,821.87
Equity
100-0300-0601 Fund Balance 8,266,049.52
100-0300-0602 Designated Restricted Donation 1,434.55
100-0300-0604 Reserve for Contingencies 910,223.00
100-0300-0605 Designated for Prepaid Items 239.50
100-0300-0608 Prior Period Adjustments 82,903.49
100-0300-0611 Reserve for L/T A/R 418,794.59
100-0300-0615 SB1186 6,975.19
Total Beginning Equity: 9,686,619.84
Total Revenue 6,784,929.77
Total Expense 7,192,111.48
Revenues Over/Under Expenses -407,181.71
Total Liabilities, Equity and Current Surplus (Deficit): 9,666,260.00 Total Equity and Current Surplus (Deficit): 9,279,438.13

REPORT TO THE CITY COUNCIL
Item 3.5

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: Information Regarding Monthly Invoice Payments PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: Check list report

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Informational only. The invoices paid are shown in the attached listing of invoices.

BACKGROUND:

Presented this evening is a list of invoices paid in March 2024.

REASON FOR RECOMMENDATION:

Informational item only.

FISCAL IMPACT:

Each item shown on the invoice list includes a description of that item and the amount of the invoice.

ALTERNATIVES:

Not applicable.

ACTIONS FOLLOWING APPROVAL:

None.
4/1/2024 9:47:53 AM Page 1 of 7
Bank Transaction Report
Chowchilla, CA Transaction Detail
Issued Date Range: 03/01/2024 - 03/31/2024
Cleared Date Range: -
Cleared
Date Number Description Module Status Type Amount
Issued
Date
Bank Account: 200650906 - General Tricounties Bank
03/01/2024 66907 Alondra Castillo Utility Billing Outstanding Check -31.42 03/07/2024 66908 CA State Disbursement Unit Accounts Payable Outstanding Check -263.53 03/07/2024 66909 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -688.00 03/07/2024 66910 Void Check Accounts Payable Voided Check 0.00 03/07/2024 66911 Chowchilla Employees Assn. Accounts Payable Outstanding Check -180.00 03/07/2024 66912 Chowchilla Mid-Management Accounts Payable Outstanding Check -110.00 03/07/2024 66913 Chowchilla Office Accounts Payable Outstanding Check -120.00 03/07/2024 66914 Fitness Peak Accounts Payable Outstanding Check -87.50 03/07/2024 66915 U.S. Bank (PARS) Accounts Payable Outstanding Check -251.12 03/07/2024 66916 Alert-O-Lite Inc. Accounts Payable Outstanding Check -50,603.71 03/07/2024 66917 American Fidelity Assurance (Flex) Accounts Payable Outstanding Check -2,850.00 03/07/2024 66918 Anderson Pump Co Accounts Payable Outstanding Check -13,712.19 03/07/2024 66919 AT & T Accounts Payable Outstanding Check -85.60 03/07/2024 66920 AT & T CALNET Accounts Payable Outstanding Check -1,330.77 03/07/2024 66921 AutoZone Parts, Inc Accounts Payable Outstanding Check -48.93 03/07/2024 66922 Badger Meter Inc. Accounts Payable Outstanding Check -661.40 03/07/2024 66923 Big Creek Accounts Payable Outstanding Check -229.92 03/07/2024 66924 BSK Associates Accounts Payable Outstanding Check -852.00 03/07/2024 66925 Burton's Fire Inc. Accounts Payable Outstanding Check -5,084.70 03/07/2024 66926 Central Irrigation, Inc. Accounts Payable Outstanding Check -32.21 03/07/2024 66927 Chowchilla Do It Best Accounts Payable Outstanding Check -79.85 03/07/2024 66928 Comcast Accounts Payable Outstanding Check -43.33 03/07/2024 66929 Daniel Denny Accounts Payable Outstanding Check -333.00 03/07/2024 66930 De Lage Landen Financial Services Inc. Accounts Payable Outstanding Check -1,598.99 03/07/2024 66931 Farmers Hardware Accounts Payable Outstanding Check -567.00 03/07/2024 66932 Ferguson Enterprises, Inc. Accounts Payable Outstanding Check -95.91 03/07/2024 66933 Flight Craft Boats Accounts Payable Outstanding Check -50,000.00 03/07/2024 66934 Fresno City College Accounts Payable Outstanding Check -61.00 03/07/2024 66935 FunFlicks Accounts Payable Outstanding Check -7,053.00 03/07/2024 66936 Guadalupe Gonzalez Accounts Payable Outstanding Check -55.18 03/07/2024 66937 Jason Rogers Accounts Payable Outstanding Check -341.78 03/07/2024 66938 L.N. Curtis & Sons Accounts Payable Outstanding Check -661.28 03/07/2024 66939 Law & Associates Investigations Accounts Payable Outstanding Check -800.00 03/07/2024 66940 Los Angeles County Regional Training Center Accounts Payable Outstanding Check -1,199.00 03/07/2024 66941 Lozano Smith, LLP Accounts Payable Outstanding Check -29,376.09 03/07/2024 66942 Metro Unifrom of Merced Accounts Payable Outstanding Check -1,105.19 Bank Transaction Report Issued Date Range: -
4/1/2024 9:47:53 AM Page 2 of 7
Cleared
Date Number Description Module Status Type Amount
Issued
Date
03/07/2024 66943 Michael Baker International Inc. Accounts Payable Outstanding Check -3,893.45 03/07/2024 66944 National Emblem, INC Accounts Payable Outstanding Check -549.88 03/07/2024 66945 NBS Accounts Payable Outstanding Check -757.52 03/07/2024 66946 ODP Business Solutions, LLC Accounts Payable Outstanding Check -324.46 03/07/2024 66947 OpenGov, Inc. Accounts Payable Outstanding Check -18,900.00 03/07/2024 66948 O'Reilly Auto Parts Accounts Payable Outstanding Check -42.41 03/07/2024 66949 PACE Supply Corp Accounts Payable Outstanding Check -15,915.65 03/07/2024 66950 PARS Accounts Payable Outstanding Check -497.34 03/07/2024 66951 Price Paige & Company CPA's LLP Accounts Payable Outstanding Check -23,142.00 03/07/2024 66952 Prudential Overall Supply Accounts Payable Outstanding Check -284.57 03/07/2024 66953 Quad Knopf, Inc. Accounts Payable Outstanding Check -82,977.81 03/07/2024 66954 R & R Pool Service Accounts Payable Outstanding Check -130.00 03/07/2024 66955 R.L. Hastings & Associates LLC Accounts Payable Outstanding Check -7,000.00 03/07/2024 66956 Rahn's Fire Safety Services Accounts Payable Outstanding Check -978.15 03/07/2024 66957 Sitting Pretty Accounts Payable Outstanding Check -15,000.00 03/07/2024 66958 Sparkletts Accounts Payable Outstanding Check -54.43 03/07/2024 66959 Steves Chevrolet of Chowchilla, LLC Accounts Payable Outstanding Check -305.00 03/07/2024 66960 Superior Pool Products, LLC Accounts Payable Outstanding Check -1,702.48 03/07/2024 66961 T-Mobile USA Inc Accounts Payable Outstanding Check -126.60 03/07/2024 66962 Toshiba Financial Services Accounts Payable Outstanding Check -381.72 03/07/2024 66963 ULINE, Inc Accounts Payable Outstanding Check -1,549.70 03/07/2024 66964 US BANK (CAL-CARD) Accounts Payable Outstanding Check -13,910.98 03/07/2024 66965 US Post Office Accounts Payable Outstanding Check -2,443.81 03/07/2024 66966 Van De Pol Enterprises Accounts Payable Outstanding Check -15,402.58 03/07/2024 66967 Vulcan Materials Accounts Payable Outstanding Check -828.75 03/07/2024 66968 West Coast Arborists Inc. Accounts Payable Outstanding Check -660.00 03/07/2024 66969 Zoom Imaging Solutions, Inc. Accounts Payable Outstanding Check -429.37 03/12/2024 66970 Na Landseadal Utility Billing Outstanding Check -111.36 03/14/2024 66971 AFLAC Accounts Payable Outstanding Check -772.21 03/14/2024 66972 Alert-O-Lite Inc. Accounts Payable Outstanding Check -397.35 03/14/2024 66973 American Fidelity Assurance Accounts Payable Outstanding Check -1,243.00 03/14/2024 66974 American Fidelity Assurance (Flex) Accounts Payable Outstanding Check -958.32 03/14/2024 66975 BSK Associates Accounts Payable Outstanding Check -374.00 03/14/2024 66976 Chowchilla Do It Best Accounts Payable Outstanding Check -90.18 03/14/2024 66977 Comcast Accounts Payable Outstanding Check -246.32 03/14/2024 66978 Creative Copy Accounts Payable Outstanding Check -606.84 03/14/2024 66979 Department of Justice/Acc Accounts Payable Outstanding Check -343.00 03/14/2024 66980 Elizabeth Fernandez Accounts Payable Outstanding Check -42.22 03/14/2024 66981 Enterprise Fleet Management, Inc Accounts Payable Outstanding Check -6,884.75 03/14/2024 66982 Fence Factory Rentals Accounts Payable Outstanding Check -1,715.00 03/14/2024 66983 Gideon Pest Control Accounts Payable Outstanding Check -225.00 03/14/2024 66984 Gladwell Governmental Services, Inc. Accounts Payable Outstanding Check -600.00 03/14/2024 66985 Healthwise Services, LLC Accounts Payable Outstanding Check -772.76 Bank Transaction Report Issued Date Range: -
4/1/2024 9:47:53 AM Page 3 of 7
Cleared
Date Number Description Module Status Type Amount
Issued
Date
03/14/2024 66986 Ingraham Trophies Accounts Payable Outstanding Check -2,610.00 03/14/2024 66987 Jeff Troost Accounts Payable Outstanding Check -269.12 03/14/2024 66988 JMP Office Technologies Accounts Payable Outstanding Check -588.00 03/14/2024 66989 Jonah Rogers Accounts Payable Outstanding Check -85.00 03/14/2024 66990 Madera Tribune Accounts Payable Outstanding Check -724.75 03/14/2024 66991 Mark Hamilton Accounts Payable Outstanding Check -150.00 03/14/2024 66992 Myers Stevens & Toohey & Co Inc Accounts Payable Outstanding Check -1,465.50 03/14/2024 66993 Navia Benefit Solutions Accounts Payable Outstanding Check -200.00 03/14/2024 66994 Occupational Health Centers of California Accounts Payable Outstanding Check -349.00 03/14/2024 66995 ODP Business Solutions, LLC Accounts Payable Outstanding Check -1,229.49 03/14/2024 66996 PacWest Direct Accounts Payable Outstanding Check -588.82 03/14/2024 66997 Precision Civil Engineering, Inc. Accounts Payable Outstanding Check -572.50 03/14/2024 66998 Prudential Overall Supply Accounts Payable Outstanding Check -230.29 03/14/2024 66999 Ray Barragan Accounts Payable Outstanding Check -326.12 03/14/2024 67000 Rod Pruett Accounts Payable Outstanding Check -168.00 03/14/2024 67001 S & W Auto Parts Inc. Accounts Payable Outstanding Check -526.18 03/14/2024 67002 San Joaquin Valley Unified Air Pollution Control District Accounts Payable Outstanding Check -290.00 03/14/2024 67003 US BANK (CAL-CARD) Accounts Payable Outstanding Check -5,771.16 03/14/2024 67004 Van De Pol Enterprises Accounts Payable Outstanding Check -5,093.89 03/14/2024 67005 Vision Service Plan - (CA) Accounts Payable Outstanding Check -926.86 03/14/2024 67006 Waseem Ahmed Accounts Payable Outstanding Check -326.12 03/14/2024 67007 West Coast Arborists Inc. Accounts Payable Outstanding Check -35,000.00 03/14/2024 67008 West Coast Pet Memorial Service Accounts Payable Outstanding Check -245.76 03/14/2024 67009 Yadira Martinez Accounts Payable Outstanding Check -48.68 03/18/2024 67010 R C Pacific Construction Inc. Utility Billing Outstanding Check -1,040.78 03/18/2024 67011 Maragrita Garcia Valles Utility Billing Outstanding Check -80.39 03/18/2024 67012 Trevor Hill and Hayley Baldwin Utility Billing Outstanding Check -89.36 03/18/2024 67013 Regina Olvera Utility Billing Outstanding Check -81.57 03/19/2024 66991 Mark Hamilton Reversal Accounts Payable Outstanding Check Reversal 150.00 03/19/2024 67014 Dean Carpenter Utility Billing Outstanding Check -119.33 03/19/2024 67015 Catalina Valencia Utility Billing Outstanding Check -98.61 03/19/2024 67016 Danqing Yu Utility Billing Outstanding Check -54.82 03/19/2024 67017 Avison Construction, Inc. Utility Billing Outstanding Check -907.97 03/19/2024 67018 Adelfa Feliciano M Utility Billing Outstanding Check -192.79 03/19/2024 67019 Heavy Road & Rail, Inc. Utility Billing Outstanding Check -1,100.48 03/21/2024 67020 Aanonson Sprinkler Company Accounts Payable Outstanding Check -55.86 03/21/2024 67021 AT & T Accounts Payable Outstanding Check -85.60 03/21/2024 67022 BSK Associates Accounts Payable Outstanding Check -618.00 03/21/2024 67023 Consolidated Electrical Distributors Accounts Payable Outstanding Check -242.48 03/21/2024 67024 Diede Construction, Inc Accounts Payable Outstanding Check -383,305.52 03/21/2024 67025 Grover Landscape Services Inc. Accounts Payable Outstanding Check -14,445.00 03/21/2024 67026 Law & Associates Investigations Accounts Payable Outstanding Check -800.00 03/21/2024 67027 Lexipol LLC Accounts Payable Outstanding Check -1,026.40 Bank Transaction Report Issued Date Range: -
4/1/2024 9:47:53 AM Page 4 of 7
Cleared
Date Number Description Module Status Type Amount
Issued
Date
03/21/2024 67028 Lozano Smith, LLP Accounts Payable Outstanding Check -23,156.45 03/21/2024 67029 Madera Tribune Accounts Payable Outstanding Check -897.00 03/21/2024 67030 Metro Uniform of Merced Accounts Payable Outstanding Check -261.19 03/21/2024 67031 Mid Valley Disposal Inc. Accounts Payable Outstanding Check -142,313.07 03/21/2024 67032 Motorola Solutions, Inc Accounts Payable Outstanding Check -933.04 03/21/2024 67033 NBS Accounts Payable Outstanding Check -7,790.19 03/21/2024 67034 Occupational Health Centers of California Accounts Payable Outstanding Check -117.00 03/21/2024 67035 ODP Business Solutions, LLC Accounts Payable Outstanding Check -219.56 03/21/2024 67036 O'Reilly Auto Parts Accounts Payable Outstanding Check -268.41 03/21/2024 67037 PARS Accounts Payable Outstanding Check -497.34 03/21/2024 67038 Price Paige & Company CPA's LLP Accounts Payable Outstanding Check -18,121.00 03/21/2024 67039 Principal Life Insurance Company Accounts Payable Outstanding Check -8,107.32 03/21/2024 67040 Quad Knopf, Inc. Accounts Payable Outstanding Check -62,667.79 03/21/2024 67041 Void Check Accounts Payable Voided Check 0.00 03/21/2024 67042 Quint & Thimming LLP Accounts Payable Outstanding Check -35,000.00 03/21/2024 67043 Robert Wiley Accounts Payable Outstanding Check -125.00 03/21/2024 67044 Southern Tire Mart LLC Accounts Payable Outstanding Check -1,750.19 03/21/2024 67045 Trinette Martinez Accounts Payable Outstanding Check -146.56 03/21/2024 67046 US BANK (CAL-CARD) Accounts Payable Outstanding Check -2,387.74 03/21/2024 67047 Van De Pol Enterprises Accounts Payable Outstanding Check -1,255.99 03/21/2024 67048 West Coast Pet Memorial Service Accounts Payable Outstanding Check -284.19 03/21/2024 67049 Kelly Smith Accounts Payable Outstanding Check -324.78 03/21/2024 67050 CA State Disbursement Unit Accounts Payable Outstanding Check -263.53 03/21/2024 67051 Chowchilla City Police Officers Association Accounts Payable Outstanding Check -1,032.00 03/21/2024 67052 Void Check Accounts Payable Voided Check 0.00 03/21/2024 67053 Chowchilla Employees Assn. Accounts Payable Outstanding Check -180.00 03/21/2024 67054 Chowchilla Mid-Management Accounts Payable Outstanding Check -110.00 03/21/2024 67055 Chowchilla Office Accounts Payable Outstanding Check -120.00 03/21/2024 67056 Fitness Peak Accounts Payable Outstanding Check -87.50 03/21/2024 67057 U.S. Bank (PARS) Accounts Payable Outstanding Check -79.16 03/27/2024 67058 Andreina Vargas Utility Billing Outstanding Check -210.95 03/27/2024 67059 Juan Carranza Lemus Utility Billing Outstanding Check -181.29 03/27/2024 67060 American Fidelity Assurance Accounts Payable Outstanding Check -1,209.60 03/27/2024 67061 American Fidelity Assurance (Flex) Accounts Payable Outstanding Check -958.32 03/27/2024 67062 AT & T CALNET Accounts Payable Outstanding Check -268.81 03/27/2024 67063 AutoZone Parts, Inc Accounts Payable Outstanding Check -33.27 03/27/2024 67064 Baker Supplies and Repairs Accounts Payable Outstanding Check -81.56 03/27/2024 67065 Blue Shield of California Accounts Payable Outstanding Check -75,438.91 03/27/2024 67066 BSK Associates Accounts Payable Outstanding Check -190.00 03/27/2024 67067 Central Valley Veterinary Clinic Accounts Payable Outstanding Check -5,381.49 03/27/2024 67068 Void Check Accounts Payable Voided Check 0.00 03/27/2024 67069 Void Check Accounts Payable Voided Check 0.00 03/27/2024 67070 Chowchilla Do It Best Accounts Payable Outstanding Check -118.99 Bank Transaction Report Issued Date Range: -
4/1/2024 9:47:53 AM Page 5 of 7
Cleared
Date Number Description Module Status Type Amount
Issued
Date
03/27/2024 67071 Chowchilla-Madera County Fair Accounts Payable Outstanding Check -450.00 03/27/2024 67072 ClearGov Inc. Accounts Payable Outstanding Check -4,713.33 03/27/2024 67073 Emily Huckabee Accounts Payable Outstanding Check -17.00 03/27/2024 67074 Farmers Hardware Accounts Payable Outstanding Check -828.67 03/27/2024 67075 Void Check Accounts Payable Voided Check 0.00 03/27/2024 67076 Gideon Pest Control Accounts Payable Outstanding Check -90.00 03/27/2024 67077 Mace Pest Control Accounts Payable Outstanding Check -90.00 03/27/2024 67078 Mark Hamilton Accounts Payable Outstanding Check -241.00 03/27/2024 67079 Maziar Aminsalehi Accounts Payable Outstanding Check -17.00 03/27/2024 67080 NBS Accounts Payable Outstanding Check -4,872.39 03/27/2024 67081 ODP Business Solutions, LLC Accounts Payable Outstanding Check -219.58 03/27/2024 67082 Precision Civil Engineering, Inc. Accounts Payable Outstanding Check -157.50 03/27/2024 67083 PROtech Security & Electronics Inc. Accounts Payable Outstanding Check -313.75 03/27/2024 67084 Quad Knopf, Inc. Accounts Payable Outstanding Check -113.60 03/27/2024 67085 Railworks Track Systems LLC Accounts Payable Outstanding Check -215.00 03/27/2024 67086 Rick Manuel Medeiros Accounts Payable Outstanding Check -895.00 03/27/2024 67087 Rosenbalm Rockery Inc. Accounts Payable Outstanding Check -4,146.28 03/27/2024 67088 S & W Auto Parts Inc. Accounts Payable Outstanding Check -11.24 03/27/2024 67089 Swank Motion Pictures, Inc. Accounts Payable Outstanding Check -2,340.00 03/27/2024 67090 Temple Display, LTD Accounts Payable Outstanding Check -435.00 03/27/2024 67091 T-Mobile USA Inc Accounts Payable Outstanding Check -126.60 03/27/2024 67092 US BANK (CAL-CARD) Accounts Payable Outstanding Check -2,835.30 03/27/2024 67093 USA BlueBook Accounts Payable Outstanding Check -482.02 03/27/2024 67094 Verizon Wireless Accounts Payable Outstanding Check -2,639.89 03/27/2024 67095 Yamabe and Horn Engineering Inc. Accounts Payable Outstanding Check -12,190.88 Bank Account 200650906 Total: (190) -1,287,154.99
Bank Account: 200695379 - Payroll-Tri Counties
03/08/2024 551 551 Payroll Outstanding Check -284.40
03/08/2024 03/06/2024 552 552 Payroll Cleared Check 0.00 03/08/2024 553 553 Payroll Outstanding Check -210.61
03/08/2024 554 554 Payroll Outstanding Check -149.48
03/08/2024 555 555 Payroll Outstanding Check -284.40
03/08/2024 556 556 Payroll Outstanding Check -284.40
03/08/2024 03/06/2024 557 557 Payroll Cleared Check 0.00 03/08/2024 558 558 Payroll Outstanding Check -210.61
03/08/2024 559 559 Payroll Outstanding Check -149.48
03/08/2024 560 560 Payroll Outstanding Check -284.40
03/08/2024 R-551 R-551 Payroll Outstanding Check Reversal 284.40 03/08/2024 03/06/2024 R-552 R-552 Payroll Cleared Check Reversal 0.00 03/08/2024 R-553 R-553 Payroll Outstanding Check Reversal 210.61 03/08/2024 R-554 R-554 Payroll Outstanding Check Reversal 149.48 03/08/2024 R-555 R-555 Payroll Outstanding Check Reversal 284.40 Bank Transaction Report Issued Date Range: -
4/1/2024 9:47:53 AM Page 6 of 7
Cleared
Date Number Description Module Status Type Amount
Issued
Date
03/22/2024 561 561 Payroll Outstanding Check -93.08
Bank Account 200695379 Total: (16) -1,021.97
Report Total: (206) -1,288,176.96
Bank Transaction Report Issued Date Range: -
4/1/2024 9:47:53 AM Page 7 of 7
Summary
Bank Account Count Amount
200650906 General Tricounties Bank 190 -1,287,154.99
200695379 Payroll-Tri Counties 16 -1,021.97
Report Total: 206 -1,288,176.96
Cash Account Count Amount
**No Cash Account** 9 0.00
999 999-0100-0215 Cash In Bank 184 -1,287,154.99
999 999-0100-0216 Cash In Bank (Payroll) 13 -1,021.97
Report Total: 206 -1,288,176.96
Transaction Type Count Amount
Check 200 -1,289,255.85
Check Reversal 6 1,078.89
Report Total: 206 -1,288,176.96

REPORT TO THE CITY COUNCIL
Item 3.6

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: Title 8.12 – Health & Safety, Weeds Update
PREPARED BY: Fred Gaumnitz, Fire Chief
ATTACHMENTS: Proposed Ordinance and Redline Changes to Proposed Ordinance

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

That the City Council adopts the amended Title 8.12 – Health & Safety, Weeds section of the Chowchilla Municipal Code presented for review.

BACKGROUND:

The need for weed abatement is a seasonal and recurring nuisance, which poses a fire, safety, and public health risk. The accumulation of weed growth also has a negative visual effect to the public within the City limits, which is a priority goal of the City Council.

REASON FOR RECOMMENDATION:

To streamline the process of weed abatement. The current weed abatement process has burdensome requirements that are not required by law and a timeline that does not allow for dangerous weeds to be addressed in that latter part of the season.

This item was introduced at a Public Hearing on March 12, 2024.

FISCAL IMPACT:

The City of Chowchilla places its public notices with Madera Tribune, and the cost for Public Hearing Notice is $133.25.

ALTERNATIVES:

The City of Chowchilla to continue using the current Municipal Code Title 8.12 – Health and Safety, Weeds.

ACTIONS FOLLOWING APPROVAL:
• The Clerk's Office provided a certified copy of the full text of the proposed ordinance to be kept in the City Clerk's Office.
• Post amended ordinance in the kiosk for public review. • After thirty (30) days, the amended ordinance goes into effect. - CODE OF ORDINANCES
Title 8 - HEALTH AND SAFETY
Chapter 8.12 WEEDS
Chowchilla City, California, Code of Ordinances Created: 2024-01-09 15:31:56 [EST] (Supp. No. 18, Update 3)

Page 1 of 4 ends

Chapter 8.12 WEEDS

8.12.010 Weeds defined.
"Weeds," as used in this chapter, means and includes weeds, grass, ferns, vines and other similar natural growth other than growth ordinarily and customarily planted for decorative purposes and which has been planted for decorative purposes and is under continuing cultivation. (Prior code § 10-16 (part))

8.12.020 Declared public nuisance—Abatement notice by resolution—City council authority.

A. All weeds growing upon the streets or sidewalks or upon or in front of private property within the city which bear seeds of a wingy or downy nature or attain such a large growth as to become a fire menace when dry, or at full natural growth will attain such a large growth as to become a fire menace whey when dry, or which are otherwise noxious or dangerous, may be declared to be a public nuisance by the city council, and may thereafter be abated as provided in this chapter.

B. Whenever any such weeds are growing upon any street or sidewalk or private property, the city council may determine that the same constitute a public nuisance and may, by resolution, declare the same to be a public nuisance, and shall therein set out the types or sizes or heights or such other description of the weeds determined to constitute a public nuisance as should reasonably be anticipated to give any and all persons affected thereby notice thereof. The city clerk shall cause such resolution to be published at least two successive weeks in the official newspaper of the city.

C. The director of public works or other designated public official may determine that a condition prohibited in section 8.12.020 is a seasonal or recurring nuisance. Such finding may be made where: (1) notice to abate by the director of public works or other designated official for the same condition(s) has been provided within the preceding twelve (12) month period; or (2) for seasonal weeds occurring in the spring, notice to abate by the director of public works or other designated public official for the same condition(s) has been provided for at least the two previous spring seasons.

Upon finding of a seasonal or recurring nuisance, the director of public works or other designated public official may require the property owner undertake preventative measures to prohibit the nuisance from recurring.

In addition, notwithstanding other provisions of the Municipal Code, the property owner may be issued an administrative citation provided for in Chapter 1.10 without further notice. (Prior code § 10-16 (part))
Formatted: Indent: Left: 0", Hanging: 0.33"
Formatted: Indent: Left: 0.33"
Formatted: Indent: Left: 0.33"
Created: 2024-01-09 15:31:56 [EST]
(Supp. No. 18, Update 3)

Page 2 of 4 ends

8.12.030 Removal of nuisance weeds—Notice posted onmailed to owner of affected property.

A. After the passage of a resolution, as described in Section 8.12.020, the director of public works shall cause a notice to be mailed to each person to whom the affected property was assessed in the last equalized assessment roll available on the date the resolution was adopted by the city council. conspicuously posted on or in front of or within fifty feet of any lot, piece or parcel of land on which or in front of which such nuisance exists, and where two or more lots, pieces or parcels of land on which or in front of such nuisance exists are contiguous he shall cause to be posted thereon or in front thereof, notices at not more than fifty feet or less than twenty-five feet apart. Such notices shall be headed "Notice to Destroy Weeds," such heading to be in words not less than one inch in height, and such notice shall be substantially in the following form:
"NOTICE TO DESTROY WEEDS
"Notice is hereby given that on the _______ day of _______ 20___, the City Council of the City of Chowchilla passed Resolution No. _______ declaring the noxious or dangerous weeds were growing upon or in front of the property on this streetlocated at [ADDRESS] within the City of Chowchilla, the nature, size and types of such weeds being more particularly described in said resolution, and that the same constitute a public nuisance which must be abated by the removal of said noxious or dangerous weeds, otherwise they will be removed and the nuisance will be abated by the municipal authorities, in which case the cost of such removal shall be assessed upon the lot and lands from which or in front of which or adjacent to which such weeds are removed, and such costs will constitute a lien upon such lots or lands, until paid. Reference is hereby made to said resolution for further particulars. All property owners having any objections or protests to the proposed removal of such weeds are hereby notified to attend a meeting of the City Council of the City of Chowchilla, to be held in the Council Chamber, City Hall, 145 Robertson Boulevard, Chowchilla, California, on the ___ day of _______, 20___, when their objections will be heard and given due consideration."
B. Subsequent to the passage of the resolution provided for in Section 8.12.020, the hearing date and time may be fixed and determined by the director of public works, to be the first meeting of any month at the regular hour of meeting of the city council in regular session, or it may be fixed and determined by the city council at any time. The notices provided for herein shall be posted at least five days prior to the time for hearing objections as fixed and determined in accordance herewith. (Prior code § 10-17)

8.12.040 Removal of nuisance weeds—Hearing of protests—Council jurisdiction.

At the time stated in the notices prescribed in the preceding section, the city council shall hear and consider all objections or protests, if any, to the proposed removal of weeds, and may continue the hearing from time to time. Upon the conclusion of such hearing, the city council, by motion or resolution shall allow or overrule any or all objections, whereupon the city council shall be deemed to have acquired jurisdiction to proceed and perform the work of removal, and the decision of the city council on the matter shall be deemed final and conclusive. (Prior code § 10-18)
Formatted: History Note
Created: 2024-01-09 15:31:56 [EST]
(Supp. No. 18, Update 3)

Page 3 of 4 ends

8.12.050 Failure to remove deemed misdemeanor when.

Any owner of property, upon which property a public nuisance has been declared to exist pursuant to Sections 8.12.010 through 8.12.040 who fails to abate such nuisance within ten days after the date of conclusion of the hearing with respect to such property, as provided in Section 8.12.040 shall be guilty of a misdemeanor. (Prior code § 10-19)

8.12.060 City to remove weeds when.

After final action has been taken by the city council on the disposition of any protests or objections or, in case no protests or objections have been received, the city council, by motion or resolution, shall order the director of public works or other designated public officer to abate such nuisance by having the weeds referred to removed, and he and his assistants or deputies are hereby expressly authorized to enter upon private property for that purpose. Any property owner shall have the right to have any such weeds removed at his own expense providing the same is done prior to the arrival of the director of public works or such other public officer so designated or his representatives to do the same.
(Prior code § 10-20)

8.12.070 Removal of weeds by city—Costs.

Pursuant to the procedures set forth in Chapter 1.20 of this code, or as otherwise authorized by law, the city is entitled to seek recovery of all nuisance abatement costs incurred in connection with any action taken to abate any violation or public nuisance under this chapter, including but not limited to investigation, boundary determination, measurement, clerical, and weed abatement. The director of public works or such other public officer so designated shall keep an account of the cost of abatement for each separate affected property. Such report shall refer to each separate lot or parcel of land by description sufficiently reasonable to identify the same, together with the expense proposed to be assessed against it, which shall include charges sufficient to pay for the administrative costs of the nuisance abatement program. (Prior code § 10-21)
( Ord. No. 483-17 , § 11, 6-27-2017)

8.12.080 ReservedReport of Costs to Assessor and Tax Collector for Special Assessment.

Alternatively to following the procedures set forth in Chapter 1.20, the city is entitled to seek recovery of all nuisance abatement costs by levying a special assessment against the nuisance property for any unpaid nuisance abatement costs.

A. Notice of costs of abatement showing the total costs of abatement including the administrative costs, shall be mailed to the owner and any lienholder of such lot or parcel in the same manner as the notice to abate was mailed pursuant to Section 8.12.030. Such notice shall state that the costs will be assessed against the affected parcel and that appeals on such assessment may be made to the City Administrator by filing written objections with the City Clerk that must be received within seven (7) days after the date of the notice, and that, if no objections are timely filed, the property will be assessed without any hearing or further notice for the amount shown in the itemized written report.

Formatted: Indent: Left: 0", First line: 0.33"
Formatted: Numbered + Level: 1 + Numbering Style:

A, B, C, … + Start at: 1 + Alignment: Left + Aligned at:

0.25" + Indent at: 0.5"
Created: 2024-01-09 15:31:56 [EST]
(Supp. No. 18, Update 3)

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B. The itemized written report, as described in Section 8.12.070, shall be submitted to the city council for confirmation.

C. The city clerk shall make available a copy of such report and assessment list together with the notice of filing thereof and of the time and place when and where it will be submitted to the city council for hearing and confirmation. The copy shall be available for at least five (5) calendar days prior to submission to the city council.

Upon the conclusion of such hearing, the city council shall then confirm the report by motion and amount thereof shall constitute a lien on the property assessed until paid.

E. A certified copy of the report shall be filed with the county auditor by the date set by the county auditor for entry of such entry on the county tax roll.

F. The amount of the assessment shall be collected at the time and in the manner of the ordinary municipal property taxes. If delinquent, the amount is subject to the same penalties and procedure of foreclosure and sale provided for ordinary municipal property taxes.

Ord. No. 483-17 , § 12, adopted June 27, 2017, repealed former § 8.12.080 which pertained to costs of removal— council hearing required, and derived from prior code § 10-22.

8.12.090 Reserved.

Ord. No. 483-17 , § 12, adopted June 27, 2017, repealed former § 8.12.090 which pertained to costs of removal— made lien on property when, and derived from prior code § 10-23.

8.12.100 Reserved.

Ord. No. 483-17 , § 12, adopted June 27, 2017, repealed former § 8.12.100 which pertained to costs of removal— refund to property owner—claim required, and derived from prior code § 10-24.

ORDINANCE NO. 520-24

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA AMENDING SECTIONS 8.12.020, 8.12.030, 8.12.060, 8.12.070, AND 8.12.080 OF CHAPTER 8.12 OF TITLE 8 OF THE CHOWCHILLA MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF CHOWCHILLA DOES ORDAIN AS FOLLOWS:

SECTION 1. Section 8.12.020 (“Declared public nuisance – Abatement notice by resolution – City council authority”) of Chapter 8.12 (“Weeds”) of Title 8 (“Health and Safety”) of the City of Chowchilla Code is hereby amended to read as follows:

8.12.020 Declared public nuisance – Abatement notice by resolution – City council authority.

A. All weeds growing upon the streets or sidewalks or upon or in front of private property within the city which bear seeds of a wingy or downy nature or attain such a large growth as to become a fire menace when dry, or at full natural growth will attain such a large growth as to become a fire menace when dry, or which are otherwise noxious or dangerous, may be declared to be a public nuisance by the city council, and may thereafter be abated as provided in this chapter.

B. Whenever any such weeds are growing upon any street or sidewalk or private property, the city council may determine that the same constitute a public nuisance and may, by resolution, declare the same a public nuisance, and shall therein set out the types or sizes or heights or such other description of the weeds determined to constitute a public nuisance as should reasonably be anticipated to give any and all persons affected thereby notice thereof.

C. The director of public works or other designated public official may determine that a condition prohibited in this section 8.12.020 is a seasonal or recurring nuisance.

Such finding may be made where: (1) notice to abate by the director of public works or other designated official for the same condition(s) has been provided within the preceding twelve (12) month period; or (2) for seasonal weeds occurring in the spring, notice to abate by the director of public works or other designated public official for the same condition(s) has been provided for at least the two (2) previous spring seasons.

Upon finding of a seasonal or recurring nuisance, the director of public works or other designated public official may require the property owner to undertake preventative measures to prohibit the nuisance from recurring.

In addition, notwithstanding other provisions of the Municipal Code, the property owner may be issued an administrative citation provided for in Chapter 1.10 without further notice.

SECTION 2. Section 8.12.030 (“Removal of nuisance weeds – Notice posted on affected property”) Chapter 8.12 (“Weeds”) of Title 8 (“Health and Safety”) of the City of Chowchilla Code is hereby amended to read as follows:

8.12.030 Removal of nuisance weeds – Notice mailed to owner of affected property.

A. After the passage of a resolution, as described in Section 8.12.020, the director of public works or other designated public official shall cause a notice to be mailed to each person to whom the affected property was assessed in the last equalized assessment roll available on the date the resolution was adopted by the city council. Such notices shall be headed “Notice to Destroy Weeds” and such notice shall be substantially in the following form:
“NOTICE TO DESTROY WEEDS”
“Notice is hereby given on the _______ day of ________ 20___, the City Council of the City of Chowchilla passed Resolution No. ________ declaring the noxious or dangerous weeds growing upon or in front of the property located at ______________ within the City of Chowchilla, the nature, size and types of such weeds being more particularly described in said resolution, and that the same constitute a public nuisance which must be abated by the removal of said noxious or dangerous weeds, otherwise they will be removed and the nuisance will be abated by the municipal authorities, in which case the cost of such removal shall be assessed upon the lot and lands from which or in front of which or adjacent to which such weeds are removed, and such costs shall constitute a lien upon such lots or lands, until paid. Reference is hereby made to said resolution for further particulars. All property owners having any objections or protests to the proposed removal of such weeds are hereby notified to attend a meeting of the City Council of the City of Chowchilla, to be held in the Council Chamber, City Hall, 130 S 2nd Street, Chowchilla, California, on the _____ day of _____, 20___, when their objections will be heard and given due consideration.”
B. Subsequent to the passage of the resolution provided for in Section 8.12.020, the hearing date and time may be fixed and determined by the director of public works or other designated public officer, to be the first meeting of any month at the regular hour of meeting of the city council in regular session, or it may be fixed and determined by the city council at any time. The notices provided for herein shall be posted at least five (5) days prior to the time for hearing objections as fixed and determined in accordance herewith.

SECTION 3. Section 8.12.060 (“City to remove weeds when”) Chapter 8.12 (“Weeds”) of Title 8 (“Health and Safety”) of the City of Chowchilla Code is hereby amended to read as follows:

8.12.060 – City to remove weeds when.

After final action has been taken by the city council on the disposition of any protests or objections or, in case no protests or objections have been received, the city council, by motion or resolution, shall order the director of public works or other designated public officer to abate such nuisance by having the weeds referred to removed, and he and his assistants or deputies are hereby expressly authorized to enter upon private property for that purpose. Any property owner shall have the right to have such weeds removed at his own expense providing the same is done prior to the arrival of the director of public works or such other public officer so designated or his representatives to do the same.

SECTION 4. Section 8.12.070 (“Removal of weeds by city – Costs”) Chapter 8.12 (“Weeds”) of Title 8 (“Health and Safety”) of the City of Chowchilla Code is hereby amended to read as follows:

8.12.070 Removal of weeds by city – Costs.

SECTION 5. Section 8.12.080 (“Report of Costs to Assessor and Tax Collector for Special Assessment”) Chapter 8.12 (“Weeds”) of Title 8 (“Health and Safety”) of the City of Chowchilla Code is hereby amended to read as follows:

8.12.080 – Report of Costs to Assessor and Tax Collector for Special Assessment Alternatively, to following the procedures set forth in Chapter 1.20, the city is entitled to seek recovery of all nuisance abatement costs by levying a special assessment against the nuisance property for any unpaid nuisance abatement costs.

A. Notice of costs of abatement showing the total costs of abatement including administrative costs, shall be mailed to the owner and any lienholder of such lot or parcel in the same manner as the notice to abate was mailed pursuant to Section

8.12.030. Such notice shall state that the costs will be assessed against the affected parcel and that appeals on such assessment may be made to the City Administrator by filing written objections with the City Clerk that must be received within seven (7) days after the date of the notice, and that, if no objections are timely filed, the property will be assessed without any hearing or further notice for the amount shown in the itemized written report.

B. The itemized written report, as described in Section 8.12.070, shall be submitted to the city council for confirmation.

D. At the time and place fixed for receiving and considering the report, the council shall hear the same, together with any protests and objections of the property owners liable to be assessed for the abatement. Upon the conclusion of such hearing, the city council shall then confirm the report by motion and amount thereof shall constitute a lien on the property assessed until paid.

E. A certified copy of the report shall be filed with the county auditor by the date set by the county auditor for entry of such entry on the county tax roll.

SECTION 7. SEVERABILITY. If any part of this Ordinance is held invalid for any reason by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of the Ordinance if such invalid portion thereof had been deleted.

SECTION 8. EFFECTIVE DATE. This ordinance shall take effect and be in force thirty (30) days from and after its final passage.

SECTION 9. PUBLICATION. The City Clerk is hereby directed to post a summary and certified copy of this ordinance in the city clerk’s office at least five (5) days prior to adoption and to publish a summary of the ordinance in the Madera Tribune, a newspaper of general circulation, within fifteen (15) days after its adoption.

INTRODUCED at a regular City Council meeting on the 12th day of March, 2024.

PASSED AND ADOPTED, by the City Council of the City of Chowchilla at a Regular Meeting held this 9th day of April, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

Kelly Smith, Mayor
ATTEST:

Joann McClendon, CMC
City Clerk

REPORT TO THE CITY COUNCIL
Item 3.7

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THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: Updating the Investment Policy
PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: Policy

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

That the Council approved the attached updated Investment Policy.

BACKGROUND:

The Investment Policy adopted in April 2016, was intended to provide guidelines for the prudent investment of the City of Chowchilla's temporary idle cash for all funds, and outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.

The normal operating funds of the City shall be governed by the constraints imposed by this policy.

However, recognizing the need for special consideration in investing substantial proceeds from the debt issue activities of the City, the full range of investment opportunities authorized by California Government Code Section 53601 will apply to funds from debt issue activities.

The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as investments meet the criteria established for safety and liquidity.

REASON FOR RECOMMENDATION:

The California Code Sections 53600 & 53630 needed to be updated to permit the City to execute agreements for Collateralized Bank Deposits/Deposit of Moneys.

FISCAL IMPACT:

There is no fiscal impact to the City of Chowchilla.

ACTIONS FOLLOWING APPROVAL:

None.

City of Chowchilla
ADMINISTRATIVE POLICY and PROCEDURE MANUAL
Section: Finance Date: April 2016
Subject: Investment Policy Council Approval: April 12, 2016 REF: CPP-F11 Resolution 40-16

POLICY PURPOSE
This statement is intended to provide guidelines for the prudent investment of the City of Chowchilla's temporary idle cash for all funds, and outline the policies for maximizing the efficiency ofthe City's cash management system. Theultimategoalistoenhancetheeconomicstatusof the Citywhile protecting its pooled cash.

The normal operating funds of the City shall be governed by the constraints imposed by this policy.

However, recognizing the need for special consideration in investing substantial proceeds fromthe debt issue activities of the City, the full range of investment opportunities authorized by California Government Code Section 53601 will apply to funds from debt issue activities.

OBJECTIVE
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as investments meet the criteria established for safety and liquidity.

PRUDENT INVESTOR STANDARD
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation butforinvestment, considering theprobable safetyoftheir capitalaswell as the probable income to be derived.

The standard of prudence to be used by investment officials shall be “Prudent Investor Rule” (Civil CodeSection 2261, et seq.).1 This affords theCity a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California (Government Code Section 53601, et seq.).

OBJECTIVES
As specified in California Government Code Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, primary objectives, in priority order, of the investment activities shall be:
1 The Prudent Investor Rule states, in essence, that "in investing ...property for the benefit of another, a trustee shall exercise thejudgment andcare, underthecircumstances thenprevailing, which menofprudence, discretion andintelligenceexerciseinthemanagementoftheirownaffairs. . .''

1. Safety- The safety and risk associated with an investment refers to the potential loss of principal, interestor a combination ofthese amounts. Safetyofprincipal istheforemost objective of the investment program. Investments of the City of Chowchilla shall be undertaken in a mannerthat seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

2. Liquidity- This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirement that might be reasonably anticipated.

3. Yield- Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. Yield is a consideration only after the basic requirements of safety and liquidity have been met.

DELEGATION OF AUTHORITY
Authority to manage the investment program is derived from California Government Code Section 53600, et seq. Management responsibility for the investment program is hereby delegated to the Finance Director who shall establish written procedures for the operation of the investment program consistent with this investment policy and the requirements of applicable laws. The Finance Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of internal staff and any external investment advisors.

All participants in the investment process shall act as custodians of the public trust and all investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that isworthy of thepublic trust. All investment related activity shall be done in conformance with this policy and all applicable State and Federal laws and regulations.

ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers shall disclose any financial interest in financial institutions that conduct business with the City, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City's portfolio.

Employees and officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of purchases and sales, and shall avoid transactions that might impair public confidence.

INVESTMENT GUIDELINES
All Cityfundsnotrequired forimmediate expenditure shallbefully invested ordeposited to maximize investment returns. To maximize returns, the economy and market conditions should be monitored in order to assess the probable course of interest rates.

The Finance Director shall utilize those eligible investments instruments as set forth in Government Code Sections 53600 et seq. and 53630 et seq. while following these guidelines:

1. Safekeeping andCustody - All investments oftheCityshallhavetheCityof Chowchilla as the registered owner or shall be kept in custody of the City or the trust department of its designated third party, safekeeping institution. If securities are kept by a safekeeping institution, the City shall have access to buy and sell such securities independently of any broker. While in safekeeping, the City shall have on file from its designated bank, a written statement that the City has a 'perfected interest' in all securities held in the trust department.

The trust department shall be required to send the City a monthly statement of what is being kept. TheFinanceDirector shall stateinthemonthlytreasurer'sreportthat the statement from the trustee has been reviewed and that the securities are being adequately protected or insured against risk of loss.

2. Diversification - Investments shall be diversified among institutions, type of securities and maturities. Investments shall be diversified to eliminate the risk of loss resulting from over concentration of investments in a specific maturity, issuer or class of securities. In establishing a diversification strategy the following general policies and constraints shall apply:
a. Portfolio maturities shall be matched versus liabilities to avoid undue concentration in a specific maturity sector.
b. Maturities selected shall provide for stability of income and liquidity c. Disbursement and payroll dates shall be covered through liquid investments with a daily maturitydate.

3. Collateralization - All individual certificates of deposit in excess of $250,000 must be collateralized. Collateral must meet the requirements of California Government Code Section 53652.

4. Financial Institutions -In selecting financial institutions, the creditworthiness shall be considered and the Finance Director shall review the financial history of the institution and utilize only those depositories that are qualified public depositories as established by statelaw. Cityfunds in excess of theFDIC insured amount shall be invested only in financial institutions sufficiently capitalized to accommodate the City's cash needs. Investments shall not knowingly be made in any financial institution that practices or supports directly or indirectly through its actions discrimination on the basis of race, religion, color, creed, natural or ethnic origin, age, sex or physical disability.

5. Brokers/Dealers -The City shall select only broker/dealers in accordance with the requirements of California Government Code Section 53601.5 who are licensed and in good standing with the California Department of Securities, the Securities and Exchange Commission, the National Association of Securities Dealers or other self-regulatory organizations. Before engaging in investment transactions with a broker/dealer the City shall have received from said firm a signed Certification Form. This form shall attest that the individual has reviewed the City of Chowchilla's InvestmentPolicyandunderstands the policy and intends to present investment recommendations and transactions to the City that are appropriate under the terms and conditions of the Investment Policy

6. Reporting - The Finance Director shall report quarterly to theCityCouncilthetypeofinvestment, financial institution, date of maturity, amount of investment, current market value, rate of interest for all securities and a statement that all City investments are in compliance with the City investment policy and all applicable provisions of the California Government Code.

7. Liquidity -The City of Chowchilla strives to maintain the level of investment of all funds as near 100% as possible, through daily and projected cash flow determinations always maintaining sufficient funds available to meet six months of obligations. The basic premise underlying the City's investment philosophy is, and will continue to be, to insure that money is always safe and available when needed.

INVESTMENTS PERMITTED AND LIMITATIONS
Allowable investments for the portfolio of The City of Chowchilla are limited by California Government Code Sections 53600 et seq. and 53630 et seq. Percentages of Investment Participation and percentages of Maximum, Participation apply at the time of purchase. In no event, shall investment maturities exceed five years.

U.S. Treasury Securities
United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the fullfaith andcreditoftheUnitedStatearepledgedforthepaymentofprincipalandinterest.

Maximum Maturity 5 years
Investment Participation 100%
Federal Agencies Securities
Obligations issued by Federal Government agencies and Government Sponsored Enterprises (U.S.

Instrumentalities) such as the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and other similar securities. Such securities are obligations of the agencies themselves, but there is also an implied guarantee by the United States Government.

Maximum Maturity 5 years
Investment Participation 100%
Certificates of Deposit
Issued by commercial banks and credit unions with federal deposit insurance available for amounts up to $250,000. Financial institutions must provide collateral for deposits over $250,000.

Maximum Maturity
5 years
Investment Participation
I 00%
5 Years
30%
Collateralized Bank Deposits/Deposit of Moneys
Issued by commercial banks and credit unions with federal deposit insurance available for amounts up to $250,000. Financial institutions must provide collateral for deposits over $250,000. An Executed Contract For Deposit of Moneys will be completed once bank has been certified to meet qualifications.

Maximum Maturity 5 Years
Investment Participation 30%
Negotiable Certificates of Deposit
Issued by commercial banks and credit unions with federal deposit insurance available for amounts up to $250,000.

MaximumMaturity 5 years
Investment Participation 100%
5 Years
30%
Local Agency Investment Fund (LAIF)
The Local Agency Investment Fund (LAIF) is a special fund inthe California StateTreasury created and governed pursuant toGovernment CodeSections 16429.1etseq. Itis a pooled investment fund managed by the State Treasurer's office for the exclusive benefit of governmental entities within California. Principal amount withdrawal of $15 million or greater need 24hournotice andlessthat $15 millionmay bewithdrawnthesameday.

MaximumMaturity NIA
Investment Participation Maximum allowed by LAIF
Medium-Term Corporate Notes
Medium Term Notes of a maximum of five years maturity issued by corporations organized and operating with the United States or by depository institutions licensed by the United States or any statesand operatingwithintheUnitedStates. A rating agencymustratenotes eligible for investment "AAA"or"AA"
If the credit rating ofthe security falls below the "A"grade, itmust be sold and removed from the City portfolio
MaximumMaturity 5 years
Investment Participation 30%

PROGRAM TO ENCOURAGE LOCAL DEVELOPMENT
To encourage local economic development, it is encouraged to use local financial institutions to provide investment products for a portion of the City's portfolio. Such products will not necessarily result in maximum earnings for the portfolio. However, the loss of short-term investment yields maybeoffsetby the potential expansion of the tax base. Local financial institutions eligible for participation in this program are defined as any financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (for commercial and savings banks), Savings Association Insurance Fund (for savings and loans associations) andtheNational Credit Union Share Insurance Fund (for credit unions) and organized and chartered under the Jaws of the United States or the State of California. Local institutions shall mean any financial institution headquartered in Madera County or any financial institution with a full service branch in Madera County. The institution shall be able to collateralize the City funds in accordance with California GovernmentCodeSection53652.

INTERNAL CONTROLS
A system of internal controls will be maintained to assure compliance with Federal and State regulations, city council direction, and prudent cash management procedures. There will be an annual audit conducted by an independent outside auditing firm to ensure compliance with all regulations and the investment policy of the City

STATEMENT OF INVESTMENT POLICY
The City of Chowchilla's investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and they must approve anymodifications.

RESPONSIBILITY FOR ENFORCEMENT
The City Administrator and Finance Director have authority to oversee the operational issues associated with the maintenance of the Budget and Finance Policy. Department Heads and supervisors are responsible for ensuring department expenditures stay within the department’s budget appropriations.

REPORT TO THE CITY COUNCIL
Item 3.8

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THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: A City Council Resolution Approving Amendments for Transportation Development Act (TDA) Funds for Fiscal Year 2022/23 and 2023/24 due to Reassigning of Funds for CATX Program and Prior Years Carryover of Funds for Pedestrian & Bicycle Program and Authorizing the City Administrator or Designee to execute and Submit Amendments to the Madera County Transportation Commission
PREPARED BY: Abigail Zurita, Fiscal Manager
APPROVED BY: Kerri Williams, Finance Director
ATTACHMENTS: Resolution, Amendments for LTF

REVIEWED BY

ADMINISTRATOR
☒ REVIEWED BY
ATTORNEY ☒ REVIEWED BY FINANCE ☒
RECOMMENDATION:

Staff recommends that Council approve the resolution (a) approving TDA Amendment Request for FY 2022/23 and 2023/24 TDA Local Transportation (LTF) including reassigning of funds for CATX program and carryover balances from prior fiscal years for Pedestrian & Bicycle program; and (b) authorizing the City Administrator or Designee to execute the amendment for submittal to the Madera County Transportation Commission (MCTC) for adoption.

BACKGROUND:

Each year staff prepares documentation required by the Madera County Transportation Commission related to the annual allocation of funds for transit and street maintenance activities. Upon approval of the allocation, the city is able to draw down the allocated funds on a reimbursement basis to cover the costs incurred during the year.

As a reminder, the State Controller annually approves LTF and STA apportionments by county pursuant to the Transportation Development Act (TDA). MCTC allocates these funds to local agencies based on each jurisdiction’s percentage share of the total County population. Annually, local agencies are required to submit applications for approval to MCTC. The applications may be amended, as needed.

LTF funds are programmed for public transit services; pedestrian and bicycle facilities and streets and roads maintenance and construction projects. Transit must be fully funded consistent with the MCTC annual Unmet Transit Needs findings, as transit has priority use of these funds. A mandatory 2% is allocated for pedestrian and bicycle facilities and 3% for transportation planning. The remaining balance may be expended on street maintenance and construction projects.

REASON FOR RECOMMENDATION:

In order to carry forward funds and use the allocations in a different fiscal year the City must make amendments to move those funds to the fiscal years needed. MCTC will authorize the expenditure of the funds once the amendments are approved by City Council.

FISCAL IMPACT:

For Fiscal year allocation 2022-23 the City will be increasing the amount needed by $137,066 to cover Streets and Road expenses and decreasing the LTF for CATX by the same amount.

For Fiscal year allocation 2023-24 the city needs to increase this by $10,536 for the Pedestrian/Bicycle Facilities funds to be used to offset Pedestrian projects. The total amount available for use in 2023-24 will be $83,284. These funds can be used to offset matches for Public Work projects.

The requested changes in the funding allocation will ensure that the City will be able to cover its costs for the Streets and Roads maintenance projects as well allowing funds for Pedestrian Projects. City Council authorization is required before MCTC can authorized the reimbursements.

ALTERNATIVES:

If these amendments are not approved, then other funds would be needed to cover the cost for Streets and Roads projects.

ACTIONS FOLLOWING APPROVAL:

Upon signatures, City Clerk to return documents to Finance.

COUNCIL RESOLUTION # -24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA

APPROVING THE AMENDMENT TO THE APPLICATION FOR LOCAL TRANSPORTATION FUNDS (LTF) FUNDS FOR FISCAL YEAR 2022/23 AND 2023/24 AND AUTHORIZING THE CITY

ADMINISTRATOR OR DESIGNEE TO EXECUTE AND SUBMIT THE AMENDMENTS TO MCTC WHEREAS, Transportation Development Act (TDA) Local Transportation Funds (LTF) is annually allocated by the Madera County Transportation Commission (MCTC) pursuant to the Transportation Development Act; and
WHEREAS, the City of Chowchilla prepares applications specifying the intended uses of the LTF funds each year, and the applications may be amended, as needed; and WHEREAS, the TDA Amendment Request for Fiscal Year 2022/23 and 2023/24 that describe the intended use of these funds have been submitted to the Council Board for its review.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds and determines the following:

1. The above recitals are true and correct.

2. The Fiscal Year 2022/23 and 2023/24 amendments for Transportation Development Act Local Transportation Funds and State Transit Assistance Funds, as allocated to the City of Chowchilla by the Madera County Transportation Commission, are approved.

3. The City Administrator or Designee are authorized to execute the amendments and submit them to the Madera County Transportation Commission for adoption.

4. Authorizes the Finance Director to make budget amendments as listed in the staff report.

5. This resolution is effective immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 9th day of April 2024 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Kelly Smith, Mayor
ATTEST:

Joann McClendon, CMC
City Clerk

REPORT TO THE CITY COUNCIL
Item 3.9

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TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: A Resolution of the City of Chowchilla Accepting a Land Donation from John and Marjolien Warkentin, Authorizing the City Administrator to Execute all Related Documents Thereto
PREPARED BY: Mark Hamilton, Director of Community & Economic Development ATTACHMENTS: Resolution
Certificate of Acceptance
Land Donation Agreement
Representative Capacity Addendum

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

That the City Council adopts a resolution to authorize the City Administrator to accept a land donation and execute necessary agreements.

BACKGROUND:

The City was approached about receiving a land donation for a piece of vacant land located on Montgomery Lake Way (APN #014-020-034-000). The City had a title search done and verified the title is “clean”.

REASON FOR RECOMMENDATION:

The donation has no restrictions on the use of the property and it is zoned for a public facility use (PF).

When the property was annexed into the City, it was zoned for the location of a future park. Currently, the property has large high-voltage powerlines covering the entire area of the parcel with very limited developable potential. The City does not have plans for the property at this time.

FISCAL IMPACT:

The escrow process is estimated to cost approximately $3,064.50, Chicago Title Fees included. This amount will be paid to CAP Works LLC to reimburse them for their services assisting with the process.

ALTERNATIVES:

Do not accept the land donation.

ACTIONS FOLLOWING APPROVAL:

Staff will complete the land donation process the escrow officer and current property owner.

COUNCIL RESOLUTION # -24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA

ACCEPTING A LAND DONATION FROM JOHN AND MARJOLEIN WARKENTIN AND

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE ALL RELATED DOCUMENTS

THERETO
WHEREAS, John and Marjolein Warkentin has offered real property consisting of approximately three point zero three eight acres (3.038 ac.) of vacant land located in the City of Chowchilla, County of Madera, State of California, APN #014-020-034-000 (the “Property”) to the City; and
WHEREAS, the City desires to accept the property for public use as directed by the City’s legislative body; and
WHEREAS, the City does not have plans for use of the Property at this time; and WHEREAS, it is in the best interest of the City to accept a grant deed of the property.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:

1. The City Administrator is authorized to enter into an agreement in substantially the form set forth in the attached Land Donation Agreement dated January 16, 2024, for the donation of the property and to take all actions necessary to facilitate the acquisition of the Property.

2. Upon a close of escrow for the Property, the City Administrator is authorized to accept the grant deed for the Property and to execute and record a certificate of acceptance along with the grant deed. The certificate of acceptance shall be in the form substantially as set forth in Exhibit B.

3. The valuation of the property is estimated at approximately $25,000.

4. The City acknowledges that CAP WORKS LLC provided assistance with this transaction for a fee of $1,200.00 (One Thousand Two Hundred Dollars), which will be paid by the City of Chowchilla. The City shall reimburse CAP WORKS LLC at close of escrow.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 9th day of April, 2024 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk

EXHIBIT B
Certificate of Acceptance
This is to certify that the interest in real property situated in the City of Chowchilla, County of Madera, State of California, conveyed by GRANT DEED, dated ________________ (“Grant Deed”), from John and Marjolein Warkentin Family Trust (“Grantor”) to City of Chowchilla, a municipal Organization (“Grantee”), is hereby accepted by the undersigned officer or agent on behalf of the Grantee, pursuant to authority conferred by Resolution No. ________________, adopted by the City Council of the city of Chowchilla on _________________, 2024, and the Grantee consents to recordation of the Grant Deed by its duly authorized officer.

CITY OF CHOWCHILLA,
A public body
BY: _______________________________________
Name: _______________________________________
Title: _______________________________________
Date: ________________________________, 2024
State of ______________________________
County of ____________________________
On ________________________ before me, _______________________________, Notary (here insert name and title of the officer)
Public, personally appeared __________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal,
__________________________________________
Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

REPORT TO THE CITY COUNCIL
Item 3.10

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TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Consent
SUBJECT: Consideration and Adoption of a City Council Resolution Approving A Rightof-Entry and License Agreement with Rancho Calera LLC Allowing the City to Enter Upon, Construct, and Install a Test Well within the Rancho Calera Development Area, Authorizing the City Administrator to Execute the Agreements
PREPARED BY: Mark Hamilton, Director of Community & Economic Development ATTACHMENTS: Resolution
Right-of-Entry and License Agreement

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

That the City Council adopt the resolution approving a Right-of-Entry and License Agreement with Rancho Calera LLC to install a test well within the Rancho Calera Development, authorizing the City Administrator to execute the agreement.

BACKGROUND:

As part of the approval of the Rancho Calera Specific Plan, the project was approved with a condition to allow for the location of a domestic well location. Staff was informed that the City had previously tested an eastern area of the project area. However, that area was determined to not be suitable location for future municipal well.

REASON FOR RECOMMENDATION:

With the approval of the agreement, the City would receive a non-exclusive license to enter upon, construct, install, and use a portion of the Licensor Property for the purpose of placing a test water well within Outlot L or the Tank area. The duration of the non-exclusive license for a term of 90-days from the approval date of the agreement.

FISCAL IMPACT:

None. Funds were previously allocated for the Test Well Location in Fiscal Year 2023/2024 using ARPA funds.

ALTERNATIVES:

The agreement is not approved, not allowing the City to install a test well to be located within the Rancho Calera Development Area.

ACTIONS FOLLOWING APPROVAL:

City executes agreement and begins the process of installing a test well.

COUNCIL RESOLUTION # -24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOWCHILLA, CALIFORNIA

APPROVING A RIGHT-OF-ENTRY AND LICENSE AGREEMENT WITH RANCHO CALERA LLC,

ALLOWING THE CITY TO ENTER UPON, CONSTRUCT, AND INSTALL A TEST WELL WITHIN

THE RANCHO CALERA DEVELOPMENT AREA, AUTHORIZING THE CITY ADMINISTRATOR TO

EXECUTE THE AGREEMENT
WHEREAS, the City will execute a Right of Entry and License Agreement (“Agreement”) is made and entered into by and between Rancho Calera, LLC, a California limited liability company (“Licensor”), and the City of Chowchilla, a municipal corporation (“Licensee”). Licensor and Licensee are sometimes collectively referred to herein as the “Parties,” or individually as a “Party.”; and, Whereas, Licensor is the owner of certain real property located in the City of Chowchilla, County of Madera, more particularly shown on Exhibit A of the Right of Entry and License Agreement hereto and incorporated herein by this reference (the “Licensor Property”).

WHEREAS, Licensee has requested that Licensor grant Licensee a non-exclusive license to enter upon, construct, install, and use a portion of the Licensor Property for the purpose of placing a test water well within Outlot L or the Tank area, the location of which are more particularly shown on Exhibit B attached hereto and incorporated herein by this reference (the “License Area”), and Licensor has agreed to Licensee’s request, pursuant to the terms and conditions contained herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chowchilla hereby finds, determines and declares the following:
• Grant of License. Licensor hereby grants to Licensee a non-exclusive license in, on, over, under and across the License Area, including the right of ingress and egress thereto and therefrom across the remainder of the Licensor Property, for the purpose of constructing, installing, and using a test water well within the License Area, subject to the terms and conditions set forth herein. • Licensee’s Activities. Licensee’s activities under this Agreement shall be performed at Licensee’s sole cost and expense, including, without limitation, the cost and expense of obtaining any necessary permits, licenses, authorizations, certifications, permissions, approvals or other governmental dispensations that are required to proceed with Licensee’s activities under this Agreement. Licensee shall ensure that all activities performed on the License Area are performed (i) in conformance with all applicable laws and regulations, and (ii) in a good and workmanlike manner.
• Term of License. The License hereunder shall commence upon execution of this Agreement by both parties (the “Effective Date”) and shall terminate on the earlier of (i) ninety (90) days from the Effective Date, (ii) written notice from Licensor to Licensee, or (iii) termination of all activities being performed by Licensee pursuant to this License.
• Insurance. During the term of this Agreement, Licensee shall maintain Commercial General Liability Insurance, primary and excess, in amounts of not less than One Million Dollars ($1,000,000) each occurrence, Combined Single Limit for Premises and Operations, Contractual Liability, Independent Contractors and Personal Injury, which policy shall cover the activities of Licensee and its general contractor under this Agreement, which insurance shall name Licensor as an additional insured.

PASSED AND ADOPTED by the City Council of the City of Chowchilla this 9th day of April, 2024 by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Mayor Kelly Smith
ATTEST:

Joann McClendon, CMC
City Clerk
CGL/City License Agreement (Test Well)
_____ Licensor
_____ Licensee

RIGHT OF ENTRY AND LICENSE AGREEMENT
This Right of Entry and License Agreement (“Agreement”) is made and entered into by and between Rancho Calera, LLC, a California limited liability company (“Licensor”), and the City of Chowchilla, a municipal corporation (“Licensee”). Licensor and Licensee are sometimes collectively referred to herein as the “Parties,” or individually as a “Party.”

RECITALS
WHEREAS, Licensor is the owner of certain real property located in the City of Chowchilla, County of Madera, more particularly shown on Exhibit A attached hereto and incorporated herein by this reference (the “Licensor Property”).

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Grant of License. Licensor hereby grants to Licensee a non-exclusive license in, on, over, under and across the License Area, including the right of ingress and egress thereto and therefrom across the remainder of the Licensor Property, for the purpose of constructing, installing, and using a test water well within the License Area, subject to the terms and conditions set forth herein. Licensee hereby accepts such license and agrees to take all precautions recommended by Licensor to ensure that the activities contemplated under this Agreement do not disrupt any activities of Licensor on or within the vicinity of the License Area and do not leave the License Area in an unsafe condition.

2. Licensee’s Activities. Licensee’s activities under this Agreement shall be performed at Licensee’s sole cost and expense, including, without limitation, the cost and expense of obtaining any necessary permits, licenses, authorizations, certifications, permissions, approvals or other governmental dispensations that are required to proceed with Licensee’s activities under this Agreement. Licensee shall ensure that all activities performed on the License Area are performed (i) in conformance with all applicable laws and regulations, and (ii) in a good and workmanlike manner.

Licensee shall promptly pay all claims for labor or materials furnished or alleged to have been furnished to or for Licensee at or for use on the License Area, which claims are or may be secured by a mechanic’s or materialmen’s lien against the License Area, or any interest therein.

3. Term of License. The License hereunder shall commence upon execution of this Agreement by both parties (the “Effective Date”) and shall terminate on the earlier of (i) ninety (90) days from the Effective Date, (ii) written notice from Licensor to Licensee, or (iii) termination of all activities being performed by Licensee pursuant to this License. Upon termination of the License, Licensee shall remove any and all equipment, fixtures, and materials placed within the License Area by Licensee. Additionally, Licensee restore the condition of the License Area to that existing prior to Licensee’s use thereof, to Licensor’s reasonable satisfaction.

CGL/City License Agreement (Test Well)
_____ Licensor
_____ Licensee

4. Insurance. During the term of this Agreement, Licensee shall maintain Commercial General Liability Insurance, primary and excess, in amounts of not less than One Million Dollars ($1,000,000) each occurrence, Combined Single Limit for Premises and Operations, Contractual Liability, Independent Contractors and Personal Injury, which policy shall cover the activities of Licensee and its general contractor under this Agreement, which insurance shall name Licensor as an additional insured and include the following coverages:
a. Course of construction against all builders’ risks;
b. Broad form contractual liability covering Licensee’s “insured contracts” as defined in the policy;
c. Product liability, including completed operations/products; d. Broad form property damage; and
e. Personal injury liability, A, B & C with employee exclusion void.

Such coverage shall be primary to any insurance carried by such additional insured. In addition, Licensee shall maintain Worker’s Compensation Insurance as required by law, including Employer’s Liability, with a minimum limit of One Million Dollars ($1,000,000), Automobile Liability Insurance in an amount not less than One Million Dollars ($1,000,000), Combined Single Limit for bodily injury and property damage for any hired, owned or non-owned vehicles used in performance of the work, and Professional Liability Insurance in an amount not less than One Million Dollars ($1,000,000) per occurrence. Coverages shall be written on an occurrence basis and shall be maintained without interruption throughout the term of this License and until the date of final payment for the work performed by Licensee hereunder and termination of any coverage required to be maintained after final payment. Licensee shall provide to Licensor a certificate of insurance, together with a separate Additional Insured Endorsement attached to the certificate and otherwise in form and content satisfactory to Licensor, evidencing all coverage stated above prior to entry onto the License Area hereunder. Such certificates must specifically provide Licensor thirty (30) days’ notice of cancellation, non-renewal or material change.

5. Indemnification. Licensee shall defend, indemnify and hold harmless Licensor, and each of its respective employees, agents, subsidiaries, officers, directors and assigns (collectively, the “Licensor Indemnitees”), of and from any and all losses, liabilities, damages, claims, judgments, orders, penalties, fines, costs or expenses, including reasonable legal, accounting and other expenses, suffered or incurred by the Licensor Indemnitees, or any of them, by reason of or resulting from (i) Licensee’s activities under this Agreement; (ii) the use of or presence on the License Area by or of Licensee, its agents, contractors, subcontractors and employees, including, without limitation, Licensee’s failure to pay when due all claims for labor or materials furnished or alleged to have been furnished to Licensee at or for use on the License Area; and (iii) Licensee’s failure to comply with or perform any of the terms, covenants, or provisions of this Agreement.

6. Successors. The terms and conditions of this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto.

CGL/City License Agreement (Test Well)
_____ Licensor
_____ Licensee

7. Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary to effectuate the purposes and intent of this Agreement.

8. Entire Agreement; Modification; Severability. This Agreement contains the entire agreement and understanding between the Parties hereto concerning the License. This Agreement cannot be amended or modified unless such amendment or modification is set forth in a document duly executed by both parties. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect and shall in no way be impaired or invalidated.

9. Governing Law. The terms of this Agreement shall be governed by and construed in accordance with the laws of the State of California.

10. No Easement Created. Nothing contained in this Agreement shall be deemed or construed to grant or create an easement or any other interest in real property, it being the intention of the Parties hereto that the rights granted by Licensor hereunder are and shall be deemed to be that of a license.

11. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall, for all purposes, be deemed an original, and all such counterparts, taken together, shall constitute one and the same instrument.

IN WITNESS WHEREOF, Licensor and Licensee have executed this Agreement as of the dates set forth below.

Licensor:

Rancho Calera, LLC,
a California limited liability company

By: Glenn M. Pace
Its: Manager
Date: April , 2024
Licensee:

The City of Chowchilla, a municipal corporation

By:

Its:

Dated: April , 2024
CGL/City License Agreement (Test Well)
_____ Licensor
_____ Licensee
Exhibit “A”
to the
Right of Entry and License Agreement
The Licensor Property
CGL/City License Agreement (Test Well)
_____ Licensor
_____ Licensee
Exhibit “B”
To the
Right of Entry and License Agreement
The License Area
(attached hereto)
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Exhibit A to Right of Entry and License Agreement

COMMERCIAL SITE
TANK

1.1± AC BLOCK 26

OUTLOT B

ULTIMATE
BASIN
OUTLOT A-1

OUTLOT L
OUTLOT A-2

SOUTH LAKE

TAHOE DRIVE
B
1 W
W
W
W
W
W
W W
W
W
W
W
W
W
W W
SS
SS
W
W
SS SS
SS
SS
SS
SS
SS
SS

NORTH LAKE

TAHOE DRIVE
BLOCK 25
3:1
3:1
3:1
3:1
3:1
3:1
3:1
3:1
3:1
A
1 SS
SS
SS
SS
SS
SS
SS
SS
W
W
W
W
W
W
W
W
W
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD
SD

OUTLOT M

SEWER PUMP

STATION FACILITY
NORTH LAKE TAHOE DRIVE B SCALE: NTS
5' 20' 20'

0.5' 0.5'
4' 4'

0.5' 0.5'
5'

RIGHT OF WAY
60'
40'

CURB TO CURB

R/W R/W
10' 10'
CL
8'
P.U.E.
8'
P.U.E.

NOTE: NO P.U.E. ON EXISTING ELEMENTARY SCHOOL LOT.

PUE ONLY REQUIRED ON LOTS WITH FRONT OR SIDE YARD STREET FRONTAGE.

PUE MAY BE PROVIDED AT SPECIFIC REAR YARD LOCATIONS.

PARK/

RESIDENTIAL/

EXISTING LOT
PARK/

RESIDENTIAL/

EXISTING LOT
7'
MIN
6'
MIN
SD WM
7'
MIN
SS
SOUTH LAKE TAHOE DRIVE A SCALE: NTS
5'

0.5' 0.5'

RIGHT OF WAY
124'
84'

CURB TO CURB
R/W
16' MEDIAN
20'
5'

0.5' 0.5'
R/W
8'
P.U.E.
8'
P.U.E.

RESIDENTIAL RESIDENTIAL
20'
NOTE: PUE ONLY REQUIRED ON LOTS WITH FRONT OR SIDE YARD STREET FRONTAGE.

PUE MAY BE PROVIDED AT SPECIFIC REAR YARD LOCATIONS.
34' 34'
7' 6'

MIN MIN

WM SD SS
7'
MIN

RANCHO CALERA

CHOWCHILLA, CA
0 1 2 3 4 5
INCHES
Drawn: | Reviewed:

HMH#5015.08 |10/17/23

BASIN & UTILITIES EXHIBIT
Scale: 1" = 80'
1570 Oakland Road (408) 487-2200 DO JLC
San Jose, CA 95131 HMHca.com
PLOTTED: 10/18/2023 11:26 AMS:\PROJECTS\501508\PL\EXHIBITS\BASIN\20231017 501508 UTILITIES.DWG 1 INCH = 80 FEET
0 40 80 160
NOTE:

UTILITIES SHOWN ARE CONCEPTUAL
Exhibit B to Right of Entry and License Agreement

REPORT TO THE CITY COUNCIL
Item 4.1

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TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: Public Hearing
SUBJECT: Public Hearing Regarding Demographic Process to Draw District Boundaries; First Public Hearing to Gather Community Input Regarding Composition of District Boundaries
PREPARED BY: Mary Lerner, City Attorney

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ BACKGROUND:

City Council members are currently elected under an “at-large” method of election, where Council members can live anywhere with the City’s boundaries and registered voters within the City may vote for all seats on the Council. On March 21, 2024, the Council took action to begin the hearing process to transition to by-district elections. In by-district elections, each Council member must reside within a designated district boundary and is elected only by the voters in that district boundary.

In commencing the process, the Council must now hold two (2) initial public hearings to give the public an opportunity to provide input regarding the potential composition of the district boundaries. The first of these public hearings is scheduled for April 9, 2024. On April 9, 2024, a demographer will present information regarding the process to draw district boundaries. The Council will then hold a public hearing to gather community input regarding the composition of district boundaries.

REPORT TO THE CITY COUNCIL
Item 6.1

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: New Business
SUBJECT: Presentation from Demographer Regarding the Transition to By-district Elections PREPARED BY: Mary Lerner, City Attorney
ATTACHMENTS: PowerPoint Presentation

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ BACKGROUND:

In commencing the process, the Council must now hold two (2) initial public hearings to give the public an opportunity to provide input regarding the potential composition of the district boundaries. The first of these public hearings is schedule for April 9, 2024. On April 9, 2024, a demographer will present information regarding the process to draw district boundaries. The Council will then hold a public hearing to gather community input regarding the composition of district boundaries.

CITY OF CHOWCHILLA
Introduction to Districting
April 9, 2024 Dr. Jeff Tilton, Senior Consultant
National Demographics Corporation
2 Election Systems

1. “At Large”

2. “From District” or “Residence” Districts

3. “By District”
The California Voting Rights Act
was written to specifically
encourage by-district elections.

April 9, 2024
3 California Voting Rights Act (CVRA)
 Under the Federal Voting Rights Act (passed in 1965), a jurisdiction must fail 4 factual tests before it is in violation of the law.  The California VRA makes it significantly easier for plaintiffs to force jurisdictions into “by-district” election systems by eliminating two of the US Supreme Court Gingles tests:
 Can the protected class constitute the majority of a district?  Does the protected class vote as a bloc?
 Do the voters who are not in the protected class vote in a bloc to defeat the preferred candidates of the protected class?
 Do the “totality of circumstances” indicate race is a factor in elections?  Liability is now determined only by the presence of racially polarized voting and dilution of the protected class’s voting strength
April 9, 2024
4 CVRA Impact
 Switched (or in the process of switching) as a
result of CVRA:
 At least 323 school districts
 46 Community College Districts
 198 cities
 1 County Board of Supervisors
 Over 75 special districts
 Cases so far:
 Palmdale, Santa Clara and Santa Monica went
to trial on the merits. Palmdale and Santa
Clara lost. Santa Monica is awaiting a decision.
 Modesto and Palmdale each spent about $1.8
million on their defense (in addition to the
attorney fee awards in those cases).
 Santa Monica has spent an estimated $7
million so far. Plaintiffs in Santa Monica
requested $22 million in legal fees after the
original trial.
 Sample settlements:
 Palmdale: $4.7 million
 Modesto: $3 million
 Highland: $1.3 million
 Anaheim: $1.1 million
 Whittier: $1 million
 Santa Barbara: $600,000
 Tulare Hospital: $500,000
 Camarillo: $233,000
 Compton Unified: $200,000
 Madera Unified: about $170,000
 Hanford Joint Union Schools:
$118,000
 Merced City: $42,000
 An estimated $16 million in total
settlements and court awards so far.

April 9, 2024
5 Districting Process
Step Description
Two Initial Hearings
April 9 & April 23
• Held prior to release of draft maps
• Education and to solicit input on the composition of districts Release draft maps
May 7
• Maps must be posted at least 7 days prior to 3rd hearing Two hearings on draft maps
May 14 & May 28
• Two meetings to discuss and revise the draft maps and to discuss the election sequence
Map adoption
June 11
• Map adopted via Ordinance.
• Final map must be posted at least 7 days prior to adoption April 9, 2024
6 Equal Population
Federal Voting Rights Act
No Racial Gerrymandering
“Shall not adopt election district
boundaries for the purpose of
favoring or discriminating against
an incumbent, political candidate,
or political party.”

1. Federal Laws 2. California Criteria
In prioritized order:

1. Geographically contiguous

2. Undivided neighborhoods
and “communities of
interest”
(Socio-economic geographic areas
that should be kept together)

3. Easily identifiable
boundaries

4. Compact
(Do not bypass one group of
people to get to a more distant
group of people)
California Prohibition
6 Districting Rules and Goals
Future population growth
Other Traditional
Districting Principles
April 9, 2024
7 Demographic
Summary
With 5 Council Districts,
each must contain about
2,685 people.

April 9, 2024
Category Field Total Category Field Total
2020 Census Total Population 13,426 age0-19 34%
Hispanic/Latino 52% age20-60 48%
NH White 37% age60plus 18%
NH Black 4% immigrants 17%
NH Asian/Pac.Isl. 5% naturalized 35%
NH Native Amer. 2% english 58%
Total 12,750 spanish 33%
Hisp 36% asian-lang 3%
NH White 46% other lang 6%
NH Black 10% Language Fluency Speaks Eng. "Less
than Very Well" 10%
Asian/Pac.Isl. 6% hs-grad 60%
Native Amer. 1% bachelor 16%
Total 5,954 graduatedegree 4%
Latino est. 38% Child in Household child-under18 46%
Spanish-Surnamed 34% Pct of Pop. Age 16+ employed 55%
Asian-Surnamed 2% income 0-25k 18%
Filipino-Surnamed 1% income 25-50k 18%
NH White est. 55% income 50-75k 20%
NH Black 2% income 75-200k 41%
Total 2,797 income 200k-plus 4%
Latino est. 27% single family 85%
Spanish-Surnamed 24% multi-family 15%
Asian-Surnamed 2% rented 44%
Filipino-Surnamed 1% owned 56%
NH White est. 68%
NH Black 2%
Total 4,511
Latino est. 31%
Spanish-Surnamed 29%
Asian-Surnamed 2%
Filipino-Surnamed 1%
NH White est. 63%
NH Black est. 2%
Housing Stats
Voter Registration
(Nov 2022)
Voter Turnout (Nov
2022)
Age
Voter Turnout (Nov
2020)
Household Income
Education (among
those age 25+)
Immigration
Language spoken at
home
Total population data from California's adjusted 2020 Census data. Citizen Voting Age Population, Age, Immigration, and other demographics from the 2018-2022 American Community Survey and Special Tabulation 5-year data. Turnout and
Registration data from California Statewide Database. "Latino" figures calculated by NDC using Census Bureau's Latino
undercount by surname estimate.

Total Pop.

Citizen Voting Age
Pop
8 Latino CVAP
April 9, 2024
Latinos are a
majority of CVAP in
most of the city
blocks west of the
railroad and north
of Ave 24 ½.
9 African-American and
Asian-American CVAP
April 9, 2024
African-Americans
are not
geographically
concentrated in the
City.

Asian-Americans are
geographically
concentrated only
around the golf
course in the
northeast.
10 Defining Neighborhoods
 How do you describe or name the area where you live?
 What are its geographic boundaries?
 What other neighborhoods are there?
Examples of physical features defining a neighborhood boundary:
• Natural neighborhood dividing lines, such as highway or major roads, rivers, canals and/or hills
• Areas around parks or schools
• School attendance boundaries
• Other neighborhood landmarks
April 9, 2024 10
11 Defining Communities of Interest
California Elections Code Section 21130(c)(2):

A “community of interest” is a population that shares common social or economic interests that should be included within a single district for purposes of its effective and fair representation.

The shared interests may include (but are not limited to):
 Shared public policy concerns such as education, public safety, public health, environment, housing, transportation, and access to social services. cultural districts;
 Shared socioeconomic characteristics;
 Similar voter registration rates and participation rates; and /or  Shared histories.

Definitions of Communities of Interest may not include relationships with political parties, incumbents, or political candidates.

April 9, 2024
12 Your Turn
 What area do you consider your neighborhood?
 What are your “communities of interest”?
For each answer, please provide:
• Geographic boundaries
• The history or defining shared characteristic of the area In the absence of public testimony, planning records and other similar documents may provide definition.  Any other questions about the process, criteria, maps, or any other part of this process?
April 9, 2024 12
13 Share Your Thoughts
Website
cityofchowchilla.org
Phone
559.665.8615 x102
Email
[email protected]
April 9, 2024 13

REPORT TO THE CITY COUNCIL
Item 6.2

CLICK HERE

TO RETURN TO

THE AGENDA
Meeting of: April 9, 2024
AGENDA SECTION: New Business
SUBJECT: Presentation of the City’s Fiscal Year 2022-2023 Financial Statement Audit PREPARED BY: Kerri Williams, Finance Director
ATTACHMENTS: PDF version of the Audit
Audit Communication Letter
Management Communication Letter
Single Audit Report

REVIEWED BY
ADMINISTRATOR ☒ REVIEWED BYATTORNEY ☒ REVIEWED BY FINANCE ☒ RECOMMENDATION:

Accept the FY 2022/2023 audit as presented.

BACKGROUND:

Annually, the City has a financial statement audit performed by an independent audit firm which is presented to Council for acceptance.

The Final version of the audit is attached with all signatures on reports. We usually have bound copies for the presentation but due to the timing of the audit being completed and the need to have it done by March 31, 2024, the bound copies will be provided at a later time. The Audit Communication and Management Communication letters are also attached which has communication from the audit firm to management and Council. The Single Audit Report provides information on Federal Grant monies spent, Internal Controls and Compliance but does not provide an opinion on them.

The FY 2022/2023 audit was performed by Price Paige & Company, Inc. Fausto Hinojosa, the Managing Partner of Price Paige & Company, oversaw the audit and Anthony Gonzales, the Audit Supervisor, will be presenting the audit to Council.

REASON FOR RECOMMENDATION:

The FY 2022/2023 audit has received a “clean”/ unmodified opinion, which is the best opinion you can receive. There was one finding regarding the year-end closing procedures. Accepting the results means that Council understands the results of the audit.

FISCAL IMPACT:

None
ALTERNATIVES:

Don’t accept the audit.

ACTIONS FOLLOWING APPROVAL:

Any journal entries proposed by the auditors will be uploaded to our system. The books for Fiscal Year 2022/2023 will be formally closed.

City of Chowchilla | California
Financial Statements
For the Year Ended June 30, 2023
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Financial Statements

TABLE OF CONTENTS
PAGE
Independent Auditor’s Report ............................................................................................................................................ 1 Management’s Discussion and Analysis ............................................................................................................................. 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .......................................................................................................................................... 15 Statement of Activities ............................................................................................................................................... 16 Fund Financial Statements:

Governmental Funds:

Balance Sheet ....................................................................................................................................................... 18 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................... 20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 21 Proprietary Funds:

Statement of Net Position .................................................................................................................................... 22 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 23 Statement of Cash Flows ...................................................................................................................................... 24 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................................... 26 Statement of Changes in Fiduciary Net Position .................................................................................................. 27 Notes to the Basic Financial Statements ............................................................................................................................ 29 CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Financial Statements
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund ............................................................................................................................................................... 64 CDBG Grants Special Revenue Fund ............................................................................................................................ 65 Impact Fees Special Revenue Fund ............................................................................................................................. 66 Measure N Special Revenue Fund ............................................................................................................................... 67 Notes to the Budgetary Comparison Schedules .......................................................................................................... 68 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan:

Schedule of the City’s Proportionate Share of Net Pension Liability (Asset) .............................................................. 69 Schedule of Contributions ........................................................................................................................................... 70 Supplementary Information:

Nonmajor Special Revenue Funds:

Combining Balance Sheet ............................................................................................................................................ 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................................... 74 Nonmajor Enterprise Funds:

Combining Statement of Net Position ........................................................................................................................ 76 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 77 Combining Statement of Cash Flows ........................................................................................................................... 78 Internal Service Funds:

Combining Statement of Net Position......................................................................................................................... 80 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................................. 81 Combining Statement of Cash Flows .......................................................................................................................... 82 Custodial Funds:

Combining Statement of Fiduciary Net Position ......................................................................................................... 83 Combining Statement of Changes in Fiduciary Net Position ....................................................................................... 84 1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Chowchilla, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the 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 as listed in the table of contents.

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

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an 2 audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison schedules, schedule of the City’s Proportionate Share of the Net Pension Liability, and Schedule of Contributions, as noted on the table of contents be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Clovis, California
March 29, 2024
4 MANAGEMENT’S DISCUSSION AND ANALYSIS
CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
5 As management of the City of Chowchilla (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with information that is included within the financial statements.

FINANCIAL HIGHLIGHTS
The assets of the City exceeded its liabilities as of June 30, 2023 by $69,133,386. Of this amount, unrestricted net position of $(2,152,143) may be used to meet the City’s ongoing obligations to citizens and creditors. As of June 30, 2022, the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $69,604,535 with unrestricted deficit net position totaling $1,554,013.

Total net position decreased by $471,149 during the year ended June 30, 2023. Net position associated with governmental activities decreased by $1,943,310 while net position associated with business-type activities increased by $1,472,161. For the year ended June 30, 2022, total net position increased by $19,134,242 with net position associated with governmental activities increasing by $17,256,092 and net position associated with business-type activities increasing by $1,878,150.

As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $28,610,846, an increase of $89,609 compared with the prior year. Of this amount, $11,255,284 is available for spending and $17,355,562 is restricted or otherwise designated for specific future uses. For the year ended June 30, 2022, the City’s governmental funds had combined ending fund balances of $28,521,237, with $9,761,567 being available for spending and $18,759,670 restricted for specific future uses. The combined ending fund balances as of June 30, 2022 represented an increase of $6,897,913 over the June 30, 2021 combined ending fund balances.

At the end of the current fiscal year, the fund balance for the general fund was $13,926,585 or 125 percent of general fund operating expenditures for the year ended June 30, 2023. The general fund’s fund balance increased by $5,403,820 for the year ended June 30, 2022. At the end of the prior fiscal year, the fund balance of the general fund was $12,532,988 or 152 percent of that year’s general fund operating expenditures. The general fund’s fund balance increased by $5,403,820 during the prior year.

The City’s total debt obligations (excluding post-retirement benefits) decreased by $851,208. This was attributable to not issuing any new debt in FY 2023 and making our scheduled principal payments on pre-existing debt. During the prior year, total debt obligations decreased by $946,995.

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

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

The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
6 regardless of the timing of related cash flows. Thus, revenue and expense are reported in this statement for some items that will result in cash flows in future fiscal periods.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, highways and streets, culture and recreation, community development and other charges. The business-type activities of the City include water, sewer, storm drain and solid waste disposal systems, as well as airport activities.

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

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as 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 governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenue, Expenditures and Changes in Fund Balance provide reconciliations to facilitate this comparison between the two.

The City maintains 56 individual governmental funds. Many funds are grouped together by purpose or type for financial reporting purposes. There are 16 governmental funds presented for financial statement purposes. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance for the general fund, which is considered a major fund, three special revenue funds, one debt service fund and one capital projects fund which are presented separately for the purpose of consistency.

Data from the other ten special revenue funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its general fund and all special revenue funds. Budgetary comparison statements have been provided for the general fund and the major special revenue funds to demonstrate compliance with the 2022/2023 budget.

Proprietary funds. The City maintains two different types of proprietary funds enterprise funds and internal service fund.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City maintains five individual enterprise funds. Information is presented separately in the proprietary Statement of Net Position and the proprietary Statement of Revenues, Expenses and Changes in Net Position for all five enterprise funds.

An internal service fund is used to accumulate and allocate costs internally among the City’s various functions. The City uses two internal service funds to account for its fleet maintenance and information technology activities. These funds costs are allocated amongst all funds that use those services, both governmental and business-type, so the funds themselves are excluded in the government-wide financial statements but are presented separately in the proprietary funds’ financial statements.

CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
7 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City.

Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

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.

Supplementary information. In addition to the basic financial statements and accompanying notes, this report also presents certain other supplementary information. The combining statements referred to earlier in connection with the nonmajor funds are presented after the basic financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of June 30, 2023, the City’s assets exceeded liabilities by $69,133,386. A significant portion of the City’s net position (44 percent) reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. Capital assets are used to provide services to citizens and they are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The following schedules represent a summary of the City’s net position and activities for the year ended June 30, 2023, with a comparison to the total net position and activities for the year ended June 30, 2022:

Statements of Net Position
June 30, 2023 and 2022
06/30/2023 06/30/2022 06/30/2023 06/30/2022 06/30/2023 06/30/2022 Assets
Current and other assets 55,781,454 $ 58,298,813 $ $ 10,063,991 $ 8,932,958 $ 65,845,445 $ 67,231,771 Capital assets 23,908,904 22,186,080 24,920,735 24,000,938 48,829,639 46,187,018 Total assets 79,690,358 80,484,893 34,984,726 32,933,896 114,675,084 113,418,789 Deferred Outflows of Resources 6,494,375 5,416,381 856,727 1,131,789 6,273,108 7,626,164 Liabilities
Long-term liabilities 29,534,189 27,358,400 14,451,940 14,240,294 43,986,129 41,598,694 Other liabilities 5,073,287 4,625,503 907,147 538,714 5,532,650 5,612,001 Total liabilities 34,159,692 32,431,687 15,359,087 14,779,008 49,518,779 47,210,695 Deferred Inflows of Resources 3,692,971 2,035,747 260,280 536,752 2,296,027 4,229,723 Net Position
Net investment in capital assets 16,939,336 15,025,723 13,339,486 12,771,444 30,278,822 27,797,167 Restricted 40,690,404 40,253,355 316,303 41,006,707 - 40,253,355 Unrestricted (deficit) (8,718,440) (4,424,468) 6,566,297 5,978,481 (2,152,143) 1,554,013 Total net position, restated 48,911,300 $ 50,854,610 $ 20,222,086 $ 18,749,925 $ 69,133,386 $ 69,604,535 $ Governmental Business-Type
Activities Totals Activities
CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
8 Statements of Activities
For the Years Ended June 30, 2023 and 2022
06/30/2023 06/30/2022 06/30/2023 06/30/2022 06/30/2023 06/30/2022 Revenues:

Program revenues:

Charges for services 2,343,716 $ 2,975,791 $ 7,571,247 $ 6,851,615 $ 9,914,963 $ 9,827,406 $ Operating grants and contributions 3,601,808 2,283,132 45,874 25,453 3,647,682 2,308,585 Capital grants and contributions 1,460,515 502,203 457,332 30,800 1,917,847 533,003 General revenues:

Property taxes 1,335,352 1,140,855 12,622 20,779 1,347,974 1,161,634 Sales taxes 5,239,148 5,191,215 - - 5,239,148 5,191,215 Transient lodging taxes 379,288 370,300 - - 379,288 370,300 Franchises fees 352,200 301,133 - - 352,200 301,133
Documentary stamp 54,161 72,147 - - 54,161 72,147
Motor vehicle-in-lieu - unrestricted 2,991,612 2,705,095 - - 2,991,612 2,705,095 Investment earnings 1,077,017 500,639 147,114 19,346 1,224,131 519,985 Rental income 90,194 94,920 - - 90,194 94,920
Legal settlement - 400,000 - - - 400,000
American Rescue Plan Act - 4,380,142 - - - 4,380,142
Miscellaneous 228,787 307,628 289,124 234,153 517,911 541,781 Gain/loss on sale of capital assets 1,906 - 827 1,280 827 3,186 Total revenues 19,153,798 21,227,106 8,524,140 7,183,426 27,677,938 28,410,532 Expenses:

General government 2,591,145 (36,132) - 2,591,145 - (36,132) Public safety 10,716,952 712,460 - 10,716,952 - 712,460 Highways and streets 2,280,766 1,951,088 - 2,280,766 - 1,951,088 Culture and recreation 1,133,294 146,001 - 1,133,294 - 146,001 Community development 2,133,767 189,115 - 2,133,767 - 189,115 Interest and fiscal charges 995,047 1,019,279 - 995,047 - 1,019,279 Water - 3,899,696 - 2,319,312 3,899,696 2,319,312
Solid waste - 2,096,463 - 1,792,268 2,096,463 1,792,268 Sewer - 2,089,916 - 1,141,244 2,089,916 1,141,244
Airport - - 58,606 57,864 58,606 57,864
Storm drain - - 153,435 43,913 153,435 43,913
Total expenses 19,850,971 3,981,811 8,298,116 5,354,601 28,149,087 9,336,412 Transfers (1,246,137) (49,325) 1,246,137 49,325 - -
Changes in net position (1,943,310) 17,195,970 1,472,161 1,878,150 (471,149) 19,074,120 Net position at beginning of year, restated 50,854,610 33,658,640 18,749,925 16,871,775 69,604,535 50,530,415 Net position at end of year 48,911,300 $ 50,854,610 $ 20,222,086 $ 18,749,925 $ 69,133,386 $ 69,604,535 $ Activities Totals
Governmental Business-Type
Activities
Governmental activities. Governmental activities decreased the City’s net position by $1,943,310 (a decrease of $19,139,280 compared to the prior year). This was due primarily to the decrease in COVID-related funding that was available, increase in construction projects and the GASB 68 calculation regarding pension obligations resulted in a $3.5M negative adjustment.

Business-type activities. Business-type activities increased the City’s net position by $1,472,161 (an increase of $1,878,150 compared to the prior year). This is primarily due to rate increases per the Proposition 218.

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

CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
9 Governmental funds. The purpose of the City’s governmental fund financial statements is to provide information on nearterm inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, an unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $28,610,846, an increase of $89,609 in comparison to the prior year. Of this amount, $11,255,284 (39 percent) was unassigned, which is available for spending at the City’s discretion. The remainder of the fund balance is assigned to indicate that it is not available for new spending because it has already been designated to liquidate contracts and purchase orders of the prior period or cover the next year budget deficit ($403,029), committed by the Council ($910,223), restricted by external entities ($15,578,576) or nonspendable because the assets that will not be converted to cash within the next twelve months ($424,731).

The general fund is the City’s chief operating fund. At the end of the current fiscal year, the spendable portion of the fund balance of the general fund was $12,149,599 while the total fund balance was $13,926,585. As a measure of the general fund’s liquidity, it may be useful to compare both the spendable portion of the fund balance and total fund balance to total fund expenditures. Spendable portion of the fund balance represents 109 percent of total general fund operating expenditures, while total fund balance represents 125 percent of the same amount.

The fund balance of the City’s general fund increased by $1,393,597 during the year ended June 30, 2023. Expenditures increased by 36% and revenue decreased by 32% resulting in an excess of expenditure over revenues of $1,751,375.

There was $4,540,672 transferred from other funds to the general fund, $1,400,783 transferred from the general fund to other funds and $5,083 of proceeds from sale of capital assets.

Major special revenue funds have a combined fund balance of $7,808,022, all of which is restricted by external entities for various activities.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the proprietary funds was $6,549,366 as of June 30, 2023. The total increase in the net position of the proprietary funds was $1,487,903 for the year. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.

GENERAL FUND BUDGETARY HIGHLIGHTS
The general fund final budgeted expenditures were greater that the original budgeted expenditures by $1,304,553. Actual expenditures were $37,066 more than final budgeted expenditures. Final anticipated revenue was $968,929 less than original anticipated revenue. Actual total revenue was $812,313 less than the final anticipated revenue. These numbers represent original City budget information and are not necessarily reflective of the activity reported in the budgetary comparison schedules. Management believes this information is the most accurate and useful for the users of the financial statements.

The decrease in actual revenues versus final budgeted revenues is due to not receiving the anticipating funding that was included in the budget. The decrease in actual expenditures versus final budgeted expenditures is due to the timing of projects being completed.

CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
10 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City’s total capital assets for its governmental and business-type activities as of June 30, 2023 amounted to $48,829,639 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, service lines, automobiles, equipment and streetlights. In addition, all sidewalks, bridges and roads within the city limits belong to the City.

City of Chowchilla's Capital Assets
(net of depreciation)
2023 2022 2023 2022 2023 2022
Land $ 721,926 $ 721,926 $ 2,031,405 $ 2,030,152 $ 2,753,331 $ 2,752,078 Construction in progress 5,681,063 3,038,329 1,725,673 270,803 7,406,736 3,309,132 Land improvements 329,994 404,542 342,875 380,434 672,869 784,976 Building improvements 4,160,864 4,386,064 2,095,954 2,174,884 6,256,818 6,560,948 Right-to-use leased buildings and improvements 18,660 29,219 - - 18,660 29,219 SBITA Right to use asset 51,610 - - - 51,610 -
Machinery, equipment and vehicles 2,514,360 2,570,425 921,453 990,367 3,435,813 3,560,792 Infrastructure 11,035,575 10,430,427 17,803,375 18,154,298 28,233,802 29,189,873 Total, restated $ 22,186,080 23,908,904 $ 24,920,735 $ 24,000,938 $ 48,829,639 $ 46,187,018 $ Governmental Activities Business-Type Activities Total
Major capital asset events during the year ended June 30, 2023 included the following:
• Various infrastructure improvements amounted to $4,097,604.

Additional information on the City’s capital assets can be found in Note 6.

Long-term liabilities. As of June 30, 2023, the City had $40,698,399 in outstanding long-term debt consisting of four revenue bond issues ($18,035,000), two loans from the State of California ($12,397,858), one Pension Obligation Bond ($9,235,000), net unamortized bond premiums/discounts ($512,239) and compensated absences ($518,302). The revenue bonds are obligations of the water, sewer and general fund. Principal payments on the revenue bonds during the year reduced the amount owed by $300,000. There was a $80,150 principal decrease in the loans payable to the State of California for the completion of the City-wide water meter upgrade project which is an obligation of the water fund.

The City’s total debt obligations (including post-retirement benefits) decreased by $2,387,435. Compensated absences payable increased by $46,685 during the year.

City of Chowchilla's Outstanding Bonds, Leases and Loans 2023 2022 2023 2022 2023 2022
Bonds $ 16,165,000 $ 16,890,000 $ 11,105,000 $ 11,175,000 $ 27,270,000 $ 28,065,000 Leases 33,241 48,044 - 33,241 - 48,044
SBITA liability 38,745 - - 38,745 - -
Loans 9,913,215 9,913,215 2,484,643 2,564,793 12,397,858 12,478,008 Total $ 26,851,259 26,150,201 $ 13,589,643 $ 13,739,793 $ 39,739,844 $ 40,591,052 $ Governmental Activities Business-Type Activities Total
Additional information on the City’s long-term liabilities can be found in Note 8.

CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
11 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The City continues to focus on maintaining a balanced budget and forecasting the needed resources to provide efficient and effective levels of service to the public. The City Council and staff continue to follow a conservative approach to the public’s finances. The increase in property taxes (roughly 15%) for FY 22/23 for the City, driven by the construction of more houses, is indeed a significant indicator of economic growth and stability within the City. Various economic outlook indicators in California, require Chowchilla and most public agencies in California to look at multi-year budget projections and prepare for possible outcomes of the future. FY 22/23 has a more stable outlook on revenues for Chowchilla after seeing the impacts COVID 19 had on our community. Due to the City Council approving a conservative budget and dedication to building reserve levels the past few years, Chowchilla positioned itself well for any negative economic fluctuations.

This conservative fiscal position does not mean that future goals and objectives are put aside, but rather, that each dollar spent is leveraged to its maximum so that we can continue to aggressively pursue the goals that our community so desperately needs. These needs can be captured in the City’s five Cornerstone Goals:
• Provide a safe and secure community.
• Strengthen infrastructure and proactively plan for services, finances and processes. • Achieve and maintain fiscal reinforcement and growth. • Enhance the quality of life and sense of place.
• Foster economic development and revenue production.

Specific goals, outcomes, and strategies to reach the outcomes under each of the Cornerstones can be found in the City’s Annual Adopted Budget document under individual department sections.

The City’s budget process, financial policies, and financial metrics are very transparent. This reflects the strategic priorities of the Council and demonstrates accountability to the tax and ratepayers. The City’s budget document meets Government Finance Officers’ Association standards and the City has been awarded the GFOA Distinguished Budget Presentation Award for the last 5 consecutive years.

The biggest economic factor in both the immediate and long-term range has been inflation. The cost of just about everything has increased. This has caused developments to pause because the costs are high to build and interest rates are high for loans. The City is currently working with Century Communities on a residential project that will have roughly 200 homes built. Construction is anticipated to start in FY 2024-25 and be completed in FY 2026-27 .

As mentioned above, Chowchilla is seeing some renewed interest in all the community and economic development sectors. We have seen an increase in business license and building permits as a result. Commercial, Industrial and Residential sectors are seeing increased activity. There are multiple residential projects in the works with already approved maps and development agreements in place. AutoZone’s distribution center is anticipated to be completed in FY 2024-25 and will be over 540,000 square feet. This will bring over 300 jobs to our community. With the new and more accepted “work from home” business model, there is a benefit for people to live in Chowchilla where cost of living is reasonable and work in the larger market cities that pay more. The County of Madera has seen this increase in demand as well.

Increased costs are going to be a significant issue to address. Everything is costing more now. Construction costs, supplies, gas, to name a few, have skyrocketed in costs over the last few months and are causing budget and timing issues. The City will be monitoring these issues and forecasting accordingly.

Even though the City issued Pension Obligation Bonds in 2019 to address the significant issue of CalPERS Unfunded Liabilities, there have been new Unfunded Liabilities since then that the City has to keep an eye on. Even when the PERS Investment Portfolio performs at or above expectations, we still see an increase in Unfunded Liabilities because of changes in actuarial assumptions.

CITY OF CHOWCHILLA | JUNE 30, 2023
Management’s Discussion and Analysis
12 Measure N, a 1% district sales tax add-on approved in 2018, is a Public Safety Measure which the funds are used to upgrade and purchase equipment as well as help with recruitment and retention of public safety employees. Retention of current employees due to increases in pension costs is allowed under this measure. This measure has performed very well and has been coming in with more revenue than previously expected. The FY 2023-24 budget has the use of Measure N monies to help pay for building improvements at the Police station and Phase II of the fire station expansion. All these items have been needed for quite some time and could not have been accomplished without Measure N. We have also used Measure N to hire additional personnel for both the Police and Fire Departments. 13 BASIC FINANCIAL STATEMENTS
14 GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF CHOWCHILLA | JUNE 30, 2023
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 15 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 8,699,512 26,280,821 $ 34,980,333 $ Restricted cash and investments with fiscal agents 316,303 494,940 811,243 Accounts receivable, net 739,031 504,273 1,243,304
Intergovernmental receivables 236,364 4,571,343 4,807,707 Leases receivable - 135,233 135,233
Notes receivable, net 23,696,427 23,696,427 -
Prepaid items 9,909 - 9,909
Prepaid bond insurance 16,433 55,850 72,283
Due from Successor Agency 89,006 - 89,006
Internal balances (16,931) 16,931 -
Capital assets:

Nondepreciable 6,402,989 3,757,078 10,160,067
Depreciable, net of accumulated
depreciation/amortization 21,163,657 17,505,915 38,669,572 Total assets 34,984,726 79,690,358 114,675,084

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year 88,389 649,805 738,194 Deferred outflows of resources from pensions 768,338 4,766,576 5,534,914 Total deferred outflows of resources 856,727 5,416,381 6,273,108

LIABILITIES
Accounts payable 685,577 593,507 1,279,084
Accrued salaries, wages, and benefits 149,246 - 149,246 Deposits 128,515 273,856 402,371
Accrued interest 3,662,165 39,784 3,701,949
Long-term liabilities:

Lease liability due within one year 15,880 - 15,880
Long-term debt due within one year 975,800 280,447 1,256,247 Lease liability due in more than one year 17,361 - 17,361 Long-term debt due in more than one year 25,695,452 13,785,445 39,480,897 Net pension liability 386,048 2,829,696 3,215,744
Total liabilities 15,359,087 34,159,692 49,518,779

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from leases 76,235 - 76,235 Deferred inflows of resources from pensions 260,280 1,959,512 2,219,792 Total deferred inflows of resources 260,280 2,035,747 2,296,027

NET POSITION
Net investment in capital assets 16,939,336 13,339,486 30,278,822 Restricted for:

Highway and streets - 7,320,725 7,320,725
Community development 25,330,557 25,330,557 -
Public safety 3,199,701 3,199,701 -
Construction projects 4,344,018 4,344,018 -
Debt service 495,403 316,303 811,706
Unrestricted 6,566,297 (8,718,440) (2,152,143)
Total net position $ 20,222,086 48,911,300 $ 69,133,386 $ CITY OF CHOWCHILLA | JUNE 30, 2023
Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 16 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total FUNCTIONS/PROGRAMSGovernmental activities:

General government $ 2,591,145 $ 205,025 $ 13,122 $ (2,372,998) - $ $ (2,372,998) - $ Public safety 10,716,952 259,363 212,123 (10,245,466) - (10,245,466) - Highways and streets 2,280,766 1,207,510 2,745,979 1,449,892 3,122,615 3,122,615 -Culture and recreation 1,133,294 27,450 16,227 (1,089,617) - (1,089,617) - Community development 2,133,767 644,368 614,357 10,623 (864,419) (864,419) - Interest and fiscal charges - 995,047 - - - (995,047) (995,047) Total governmental activities 2,343,716 19,850,971 3,601,808 1,460,515 (12,444,932) - (12,444,932) Business-type activities:

Water 3,899,696 3,049,345 - 195,783 (654,568) - (654,568) Solid waste 2,096,463 2,308,210 5,047 - 216,794 - 216,794 Sewer 2,089,916 1,971,720 - - (118,196) - (118,196)
Airport 58,606 18,889 40,827 261,549 262,659 - 262,659Storm drain 153,435 223,083 - - - 69,648 69,648 Total business-type activities 7,571,247 8,298,116 45,874 457,332 - (223,663) (223,663) Total $ 9,914,963 28,149,087 $ 3,647,682 $ 1,917,847 $ (12,444,932) (223,663) (12,668,595) General revenues:

Taxes:

Property 1,335,352 12,622 1,347,974
Sales 5,239,148 - 5,239,148
Transient lodging 379,288 - 379,288
Franchise 352,200 - 352,200
Documentary stamp 54,161 - 54,161
Motor vehicle-in-lieu - unrestricted 2,991,612 - 2,991,612Investment income 1,077,017 147,114 1,224,131Rental income 90,194 - 90,194Miscellaneous 228,787 289,124 517,911Gain on sale of capital assets 827 - 827 Transfers 1,246,137 (1,246,137) -
Total general revenues and transfers 1,695,824 10,501,622 12,197,446 Change in net position (1,943,310) 1,472,161 (471,149)
Net position - beginning 18,749,925 50,854,610 69,604,535 Net position - ending $ 20,222,086 48,911,300 $ 69,133,386 $ Program Revenues
Net (Expenses) Revenues and
Changes in Net Position
17 FUND FINANCIAL STATEMENTS
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Governmental Funds Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 18 Other Total
CDBG Impact Debt Capital Governmental Governmental
General Grants Fees Measure N Service Projects Funds Funds ASSETS
Cash and investments $ 75,753 11,502,093 $ 4,753,419 $ 2,735,328 $ 19,197 $ - $ 6,986,015 $ 26,071,805 $ Restricted cash and investments with fiscal agents - - - - 494,940 - - 494,940Accounts receivable, net 53 474,693 - - - - 29,463 504,209 Intergovernmental receivables 198,264 763,658 - 468,935 - 34,714 3,105,772 4,571,343 Leases receivable - 135,233 - - - - - 135,233
Notes receivable, net 22,179,615 - - - - - 1,516,812 23,696,427Due from other funds - 1,390,503 - - - - - 1,390,503 Prepaid items 14,699 - - - - - - 14,699
Prepaid bond insurance - - - - 16,433 - - 16,433
Advances to other funds 410,032 - - - - - - 410,032
Total assets $ 22,453,685 14,690,911 $ 4,753,419 $ 3,204,263 $ 530,570 $ 34,714 $ 11,638,062 $ 57,305,624 $

LIABILITIES
Accounts payable 396,654 $ 9,136 $ - $ 4,562 $ - $ 9,688 $ 198,368 $ 618,408 $ Deposits 128,515 - - - - - - 128,515
Due to other funds - - - - - 24,395 1,254,032 1,278,427 Advances from other funds - - 410,032 - - - - 410,032
Total liabilities 9,136 525,169 410,032 4,562 - 34,083 1,452,400 2,435,382

DEFERRED INFLOWS OF RESOURCES
Deferred inflows from lease proceeds - 76,235 - - - - - 76,235 Unavailable revenues 162,922 22,179,615 - - - - 3,840,624 26,183,161 Total deferred inflows of resources 22,179,615 239,157 - - - - 3,840,624 26,259,396 FUND BALANCESNonspendable:

Prepaid expenses 14,699 - - - - - - 14,699
Advances to other funds 410,032 - - - - - - 410,032
Restricted for:

Highway and streets - - - - - - 5,870,157 5,870,157Community development 264,934 - - - - - 1,369,196 1,634,130 Public safety - - - 3,199,701 - - - 3,199,701
Construction projects - - 4,343,387 - 35,167 631 - 4,379,185 Debt service - - - - 495,403 - - 495,403
Committed to:

Emergency contingency 910,223 - - - - - - 910,223
Assigned to:

Culture and recreation - 39,003 - - - - - 39,003
Subsequent fiscal year budget deficit 403,029 - - - - - - 403,029 Unassigned - 12,149,599 - - - - (894,315) 11,255,284
Total fund balances 13,926,585 264,934 4,343,387 3,199,701 530,570 631 6,345,038 28,610,846 Total liabilities, deferred inflows of resources, and fund balances $ 22,453,685 14,690,911 $ 4,753,419 $ 3,204,263 $ 530,570 $ 34,714 $ 11,638,062 $ 57,305,624 $ Special Revenue
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 19 Total fund balances - governmental funds $ 28,610,846 23,475,149
Contributions to the pension plan subsequent to the measurement date 616,450 Deferred outflows of resources from pensions 4,482,218
Deferred inflows of resources from pensions (1,865,451) Bonds, loans payable, compensated absences, lease related liabilities (26,114,205) Net pension liability (2,684,002)
(3,662,165)
26,183,161
(130,701)
Net position of governmental activities $ 48,911,300
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. Those liabilities consist of:

Internal service funds are used by management to charge the costs to individual funds.

These assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position.

Interest payable on long-term debt does not require the use of current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds balance sheet.

Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Pension related deferrals are reported as deferred outflows and inflows of resources on the statement of net position:

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 20 Other Total
CDBG Impact Debt Capital Governmental Governmental
General Grants Fees Measure N Service Projects Funds Funds

REVENUES
Taxes $ 4,761,533 $ - $ 2,598,614 - $ $ - $ - $ 7,360,147 - $ Licenses and permits 547,489 - - - - - 547,489 -
Fines and penalties 182,213 - - - - - 182,213 -
Intergovernmental revenues 3,246,293 763,459 - - - 39,188 2,599,475 6,648,415 Use of money and property 322,990 25,859 121,813 83,876 11,118 157,909 - 723,565 Charges for services 168,802 1,240,141 - - - 336,325 - 1,745,268 Miscellaneous 200,894 - - 446 27,178 - 633 229,151
Total revenues 9,430,214 789,318 1,361,954 2,682,936 38,296 39,188 3,094,342 17,436,248 EXPENDITURESCurrent:

General government 1,266,681 - - 1,760 - - 5,391 1,273,832 Public safety 4,203,095 - 1,755 881,682 - - 13,287 5,099,819 Highways and streets - - 8,796 - - 1,230,002 - 1,238,798 Culture and recreation 621,623 - 288 - - - 621,911 -
Community development 735,678 517,413 - - - - 10,452 1,263,543 Capital outlay 4,354,512 2,013 315,869 - - 45,040 357,797 5,075,231 Debt service:

Principal - - - 725,000 - - 725,000 -Interest - - - 699,101 - - 699,101 - Fiscal charges - - - - 9,025 - - 9,025
Total expenditures 519,426 11,181,589 326,708 883,442 1,433,126 45,040 1,616,929 16,006,260 Excess (deficiency) of revenues over (under) expenditures (1,751,375) 269,892 1,035,246 1,799,494 (1,394,830) (5,852) 1,477,413 1,429,988

OTHER FINANCING SOURCES (USES)
Transfers in - 4,540,672 - - 1,395,059 5,786 354,247 6,295,764 Transfers out (1,400,783) (1,011,829) (1,288,000) (1,888,933) - (1,952,356) - (7,541,901)Gain (loss) on sale of assets - 5,083 - - - - (99,325) (94,242) Total other financing sources (uses) 3,144,972 (1,011,829) (1,288,000) (1,888,933) 1,395,059 5,786 (1,697,434) (1,340,379) Net change in fund balances (741,937) 1,393,597 (252,754) (89,439) 229 (66) (220,021) 89,609 Fund balances - beginning 1,006,871 12,532,988 4,596,141 3,289,140 530,341 697 6,565,059 28,521,237 Fund balances - ending $ 264,934 13,926,585 $ 4,343,387 $ 3,199,701 $ 530,570 $ 631 $ 6,345,038 $ 28,610,846 $ Special Revenue
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities The notes to the basic financial statements are an integral part of this statement. 21 Net change in fund balances - total governmental funds $ 89,609 Capital outlay 3,026,341
Depreciation expense (1,398,596)
(88,876)
Repayment of the principal of long-term debt 725,000
Amortization on bond discounts and premiums (3,452)
(286,455)
(5,610,116)
443,646
1,277,402
(117,813)
Change in net position of governmental activities (1,943,310) $ Amounts reported for governmental activities in the statement of activities are different because:

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items:

Accrued interest payable on long-term debt is reported in the government-wide statement of activities, but does not require the use of current financial resources. This amount represents the change in accrued interest payable not reported in governmental funds.

The changes in net position of certain activities of the internal service funds is reported within governmental activities.

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.

The distribution of housing loans and corresponding payments that were recognized in the governmental funds are not recognized in the statement of activities.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of these assets are allocated over their estimated useful lives and reported as depreciation expense. In the current period, these amounts are:

The net effect of various miscellaneous transactions involving capital assets (i.e., sales and donations) is to increase (decrease) net position.

Changes to net pension liability and pension related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

CITY OF CHOWCHILLA | JUNE 30, 2023
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 22 Governmental
Activities
Other Internal
Solid Enterprise Service
Water Waste Sewer Funds Total Funds
ASSETS
Current assets:

Cash and investments $ 663,613 2,243,769 $ 3,474,972 $ 2,317,158 $ 8,699,512 $ 209,016 $ Restricted cash and investments with fiscal agents - 180,300 136,003 - 316,303 - Accounts receivable, net 239,943 269,893 205,855 23,340 739,031 64 Intergovernmental receivables - - 30,907 205,457 236,364 - Prepaid items - - - - - (4,790)
Prepaid bond insurance - 49,969 5,881 - 55,850 -
Total current assets 903,556 2,743,931 3,853,618 2,545,955 10,047,060 204,290 Noncurrent assets:

Capital assets:

Nondepreciable 83,672 1,380,954 - 2,292,452 3,757,078 165,683 Depreciable, net of accumulated depreciation - 14,637,792 5,990,439 535,426 21,163,657 268,072 Total noncurrent assets - 14,721,464 7,371,393 2,827,878 24,920,735 433,755 Total assets 903,556 17,465,395 11,225,011 5,373,833 34,967,795 638,045

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year - 50,679 32,575 5,135 88,389 33,355 Deferred outflows of resources from pensions 441,365 - 283,043 43,930 768,338 284,358 Total deferred outflows of resources 492,044 - 315,618 49,065 856,727 317,713

LIABILITIES
Current liabilities:

Accounts payable 104,621 265,381 17,605 205,900 593,507 67,169 Accrued salaries, wages, and benefits - - - - 149,246 - Deposits 273,856 - - 273,856 - -
Due to other funds - - - - - 23,070
Accrued interest 28,899 - 10,885 - 39,784 -
Compensated absences - - - - 382,055 -
Current portion of subscription liability - - - - - 18,900 Current portion of lease liabilities - - - - - 15,880
Current portion of long-term debt 240,447 - 40,000 - 280,447 - Total current liabilities 647,823 265,381 68,490 205,900 1,187,594 656,320 Noncurrent liabilities:

Compensated absences - - - - - 136,247
Net pension liability - 221,334 142,285 22,429 386,048 145,694 Subscription liability - long-term - - - - - 19,845
Lease liabilities - - - - - 17,361
Long-term debt - 10,771,633 3,013,812 - 13,785,445 -
Total noncurrent liabilities - 10,992,967 3,156,097 22,429 14,171,493 319,147 Total liabilities 265,381 11,640,790 3,224,587 228,329 15,359,087 975,467

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions 150,393 - 95,383 14,504 260,280 94,061 Total deferred inflows of resources 150,393 - 95,383 14,504 260,280 94,061

NET POSITION (DEFICIT)
Net investment in capital assets - 6,194,027 4,317,581 2,827,878 13,339,486 417,875 Restricted:

Debt service - 180,300 136,003 - 316,303 -
Unrestricted 638,175 (208,071) 3,767,075 2,352,187 6,549,366 (531,645) Total net position (deficit) $ 638,175 6,166,256 $ 8,220,659 $ 5,180,065 $ 20,205,155 $ (113,770) Adjustment to report the cumulative internal balance
for the net effect of the activity between the internal service funds and the enterprise funds over time 16,931 Net position of business-type activities 20,222,086 $
Business-Type Activities - Enterprise Funds
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 23 Governmental
Activities
Other Internal
Solid Enterprise Service
Water Waste Sewer Funds Total Funds
Operating revenues:

Charges for services $ 3,049,345 $ 2,308,210 $ 1,971,720 $ 241,972 $ 7,571,247 $ 1,079,020 Miscellaneous 51,418 80,341 89,568 9,580 230,907 331
Total operating revenues 2,359,628 3,129,686 2,061,288 251,552 7,802,154 1,079,351 Operating expenses:

Personnel services 1,221,077 804,278 - 108,222 2,133,577 723,331 Materials, supplies and services 1,821,022 2,096,463 828,615 72,209 4,818,309 436,721 Depreciation 506,149 - 311,679 31,610 849,438 52,647
Total operating expenses 2,096,463 3,548,248 1,944,572 212,041 7,801,324 1,212,699 Operating income (loss) 263,165 (418,562) 116,716 39,511 830 (133,348) Nonoperating revenues (expenses):

Use of money and property 55,002 12,803 71,136 8,173 147,114 - Taxes - - 70,839 - 70,839 -
Grants - capital - - 487,332 - 487,332 -
Grants - operating - 5,047 10,827 - 15,874 -
Gain (loss) on sale of assets - - 827 - 827 3
Interest expense - (342,461) (138,589) - (481,050) (3,197) Total nonoperating revenues (expenses) 17,850 (287,459) (66,626) 577,171 240,936 (3,194) 281,015 (706,021) 50,090 616,682 241,766 (136,542)
Transfers in 53,481 - - 3,420,332 3,473,813 -
Transfers out (5,278) (4,011) (5,278) (2,227,676) (2,213,109) - Change in net position 275,737 (656,551) 44,812 1,823,905 1,487,903 (136,542) Net position (deficit) - beginning 362,438 6,822,807 8,175,847 3,356,160 22,772 Net position (deficit) - ending $ 638,175 6,166,256 $ 8,220,659 $ 5,180,065 $ (113,770) $ Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds (15,742) Changes in net position of business-type activities 1,472,161 $ Business-Type Activities - Enterprise Funds
Income (loss) before transfers
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Proprietary Funds
Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 24 Governmental
Activities
Other Internal
Solid Enterprise Service
Water Waste Sewer Funds Total Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 2,365,044 3,164,968 $ 2,029,509 $ 251,087 $ 7,810,608 $ 1,078,956 $ Payments to suppliers (1,951,332) (1,864,693) (926,014) 133,300 (4,608,739) (594,084) Payments to employees (612,514) - (438,838) (57,934) (1,109,286) (234,580) Other operating revenues 51,418 80,341 89,568 230,907 9,580 331 465,130 768,102 754,225 336,033 2,323,490 250,623

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grants received - 5,047 - 10,827 15,874 -
Transfer from other funds 53,481 - 3,420,332 - 3,473,813 - Transfer to other funds (4,011) (5,278) (5,278) (2,213,109) (2,227,676) - Loans from other funds - - - - - 23,070
Taxes received - - - 70,839 70,839 -
(231) 49,470 (5,278) 1,288,889 1,332,850 23,070

FINANCING ACTIVITIES
Principal paid (136,400) - (38,003) - (174,403) -
Interest paid (338,582) - (133,528) (472,110) - -
Grants received - - - 294,752 294,752 -
Leases paid (18,000)
Acquisition of capital assets (50,593) - 75,003 (1,681,866) (1,657,456) (197,860) Proceeds from the sale of assets - - 827 827 - 3
- (525,575) (95,701) (1,387,114) (2,008,390) (215,857)

CASH FLOWS FROM INVESTING ACTIVITIES
55,002 12,803 71,136 138,941 - -
- - - 8,173 8,173 -
12,803 55,002 71,136 8,173 147,114 -
477,702 346,999 724,382 245,981 1,795,064 57,836
185,911 2,077,070 2,886,593 2,071,177 7,220,751 151,180 Cash and cash equivalents - ending $ 663,613 2,424,069 $ 3,610,975 $ 2,317,158 $ 9,015,815 $ 209,016 $ Business-Type Activities - Enterprise Funds
Net cash provided by (used for) operating activities
activities
Interest received
Rents received
Net cash provided by (used for) noncapital financing
Net cash provided by (used for) capital and
Net increase (decrease) in cash and cash equivalents

CASH FLOWS FROM CAPITAL AND RELATED
related financing activities
Cash and cash equivalents - beginning
Net cash provided by (used for) investing activities
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Proprietary Funds
Statement of Cash Flows
(Continued)
The notes to the basic financial statements are an integral part of this statement. 25 Governmental
Activities
Other Internal
Solid Enterprise Service
Water Waste Sewer Funds Total Funds
Operating income (loss) $ (418,562) $ 263,165 $ 116,716 $ 39,511 $ 830 $ (133,348) Depreciation 506,149 311,679 - 31,610 849,438 52,647
(Increase) decrease in:

Accounts receivable 67,074 56,834 57,789 9,115 190,812 (64) Prepaid expenses - - - - 103,933 -
Net pension liability 599,269 371,687 - 54,745 1,025,701 346,217 Deferred outflows of resources from pensions 160,131 101,950 - 12,981 275,062 55,731 Increase (decrease) in:

Accounts payable and other liabilities (43,671) 145,131 (97,399) 205,509 209,570 (125,634) Deposits 48,549 - - - 48,549 -
Compensated absences - - - - - 46,686
Deferred inflows of resources from pensions - (150,837) (108,197) (17,438) (276,472) (95,545) $ 465,130 768,102 $ 754,225 $ 336,033 $ 2,323,490 $ 250,623 $ Business-Type Activities - Enterprise Funds
Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:

Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Net cash provided by (used for) operating activities
CITY OF CHOWCHILLA | JUNE 30, 2023
Fiduciary Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 26 Successor
Agency Private
Custodial Purpose
Funds Trust Fund
ASSETS
Cash and investments (in City investment pool) $ - 2,066,216 $ Restricted cash with fiscal agents - 782,190
Accounts receivable (net) - 20,555
Prepaid expenses 3,338 -
Prepaid bond insurance 38,631 -
Long term receivables 43,750
Land held for resale 600,667 -
Total assets 686,386 2,868,961

LIABILITIES
Accounts payable 36 3,002
Accrued interest 55,877 -
Due to City 89,006 -
Long-term debt due within one year 275,000 -
Long-term debt due in more than one year 4,567,379 -
Total liabilities 4,987,298 3,002

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 2,865,959 Redevelopment agency dissolution (4,300,912) -
Total net position $ (4,300,912) 2,865,959 $
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 27 Successor
Agency Private
Custodial Purpose
Funds Trust Fund

ADDITIONS
Taxes $ 511,365 - $
Property tax collections - 1,558,573
Investment earnings 894 57,558
Total additions 512,259 1,616,131

DEDUCTIONS
Payments to bondholders - 1,465,288
Administrative expenses 134,833 78,187
Interest 125,931 -
Total deductions 260,764 1,543,475
Change in fiduciary net position 72,656 251,495
Net position (deficit) - beginning (4,552,407) 2,793,303 Net position (deficit) - ending $ (4,300,912) 2,865,959 $ 28 NOTES TO THE BASIC FINANCIAL STATEMENTS
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Chowchilla (City) was incorporated on February 7, 1923, as a municipal corporation under the General Laws of the State of California. The City operates as a self-governing local government unit within the State of California. A fivemember City Council appoints a City Administrator who administers the daily affairs under the policy guidance of the City Council. The City has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. Voters elect a City Council that passes laws and determines broad policies. The City Council also oversees the operations of the City and approves all budgets, fund transfers, and fund balance reserves. Services provided by the City include public safety, streets and roads, water, sanitation, public improvements, culture and recreation, parks, building inspections, planning and zoning, redevelopment, and general administration.

B. Blended Component Units
A primary government is financially accountable for a component unit if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately-elected governing board, a governing board appointed by a higher level of government, or a jointly-appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. Based upon the application of these criteria, the following is a brief description of each component unit included within the City’s reporting entity. All such component units have been “blended” as though they are part of the primary government as the component unit’s governing body is substantially the same as the City’s primary government and there is a financial benefit or burden relationship between the City and the component unit. In addition, management of the City has operational responsibilities for the component unit, and/or the component units provide services almost entirely to the city or for the exclusive benefit of the City, even though it does not provide services directly to it, or the City is entirely or almost entirely responsible for the repayment of the debt of the component unit. Financial information for these component units can be obtained from the City’s Administrative Services Department and from the City’s website at http://ci.chowchilla.ca.us.

The Public Financing Authority (the Authority) of the City of Chowchilla was formed on August 14, 1989, for the purpose of assisting the City in the financing of the acquisition, construction and installation of public capital improvements for the use, benefit and enjoyment of the citizens served by the City. The City Council serves as the governing board of the Authority and, therefore, is financially accountable for the operations of the Authority.

The Chowchilla Housing Authority (the Housing Authority) was established on January 24, 2012. The Housing Authority was activated pursuant to State Law Section 34240 of the California Health and Safety Code, which allows for every City to establish a housing authority. The Housing Authority is designed to protect local housing funds and programs, provide new revenue opportunities for affordable housing programs, serve the public interest, promote public safety and welfare, and ensure decent, safe, sanitary and affordable housing accommodations to persons of low income.

Since the City Council serves as the governing body of these entities, they are considered blended component units. As a result, the financial activities of these entities are integrally related to those of the City and are “blended” with those of the City.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Presentation
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

Government-Wide Financial Statements – The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the doublecounting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expense and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are included in the program expense reported for individual function. Certain indirect costs, which cannot be identified and broken down, are included in the program expenses reported for individual functions and activities. Program revenues include: 1) fines, fees, and charges paid by the recipients of goods and services offered by the programs; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Certain eliminations have been made as prescribed by GASB Statement No. 34 with regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated: due to/due from other funds, interfund advances to/advances from, and transfers in/transfers out.

Fund Financial Statements – The fund financial statements provide information about the City’s funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. An accompanying schedule is presented to reconcile and explain the differences in funds and changes in fund balances as presented in these Statements to the Net Position and Changes in Net Position presented in the government-wide financial statements.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Presentation (Continued)
The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City except for those required to be accounted for in another fund.

The Community Development Block Grant Special Revenue Fund accounts for the revenues received by the various CDBG grants, the uses of those funds (i.e., grants and loans for housing rehabilitation projects), as well as the receipt and re-use of program income generated by the repayment of CDBG loans.

The Impact Fees Special Revenue Fund accounts for the accumulation of resources from developers for the expected future capital cost of the City as a result of development. Impact fees collected are restricted for the use of general, police, fire and parks facilities; and streets and roads, signalization, water, sewer and storm drain capital projects.

The Measure N Special Revenue Fund accounts for 1% Public Safety Sales Tax add-on that was voter approved in 2018 and became effective April 1, 2019. Monies are allocated between Police and Fire Departments and are used for growth and efficiency of the departments.

The Debt Service Fund accounts for the accumulation of resources that are restricted, committed or assigned for the payment of principal and interest on long-term obligations of governmental funds.

The Capital Projects Fund accounts for the acquisition and construction of the City’s major capital projects, other than those financed by proprietary funds.

Enterprise fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major enterprise fund and nonmajor fund.

The City has five enterprise funds – water, solid waste, sewer, storm drain and airport. These funds are used to account for operations that are financed and operated in a manner similar to private business enterprise. In an enterprise fund, the intent of the City Council is that the costs (expenses, including depreciation) of providing services to the general public, on a continuing basis, be financed or recovered primarily through user charges.

The City reports the following major enterprise funds:

The Water Enterprise Fund accounts for the provision of water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, distribution, maintenance, and debt service.

The Solid Waste Enterprise Fund accounts for the revenues and expenses for operation and maintenance of the solid waste system.

The Sewer Enterprise Fund accounts for the provision of wastewater collection and treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, and debt service.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Presentation (Continued)
Additionally, the government reports the following fund types:

Internal Service Funds:

The Fleet Maintenance Internal Service Fund accounts for the cost associated with maintaining the citywide fleet of vehicles and rolling stock heavy equipment. Charges are assessed to each department on the basis of time/materials necessary to maintain their equipment.

The Information Technology Internal Service Fund accounts for the costs of providing computer and information services. User charges are recovered from other City departments that utilized the services provided.

The Employee Benefits Internal Service Fund accounts for compensated absences and other employee benefits that are provided by the City.

Fiduciary Funds:

The Custodial Funds accounts for assets held by the City as an agent for special districts.

The Successor Agency Private Purpose Trust Fund accounts for assets and liabilities of the former redevelopment agency until they are distributed to other units of state and local government as a result of the dissolution of the redevelopment agency.

Measurement Focus, Basis of Accounting
Government-Wide, Proprietary and Fiduciary Fund Financial Statements – The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus. The governmentwide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the fiscal year in which all eligibility requirements have been satisfied.

Governmental Fund Financial Statements – Governmental funds are reported using current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when measurable and available. Property and sales taxes, interest, and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments and compensated absences, are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds.

Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of each fund. Nonoperating revenues, such as interest income, state and federal grants and subsidies, result from nonexchange transactions or ancillary activities. Operating expenses include costs for providing services and delivering goods such as administrative expenses and depreciation on capital assets. All other expenses not meeting this definition are reported as nonoperating expenses.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances Cash and Cash Equivalents
For purposes of reporting cash flow, the City considers all highly-liquid investments with maturity of three months or less when purchased to be cash and cash equivalents.

Cash and Investments
The City maintains a cash and investment pool that is available for all funds. Each fund-type balance in the pool is reflected on the combined balance sheet as cash and investments. The City apportions interest earnings to all funds based on their quarterly cash balances.

The City pools cash and investments with the City Treasurer except for investments managed by fiscal agents under bonded debt agreements. Interest from bank accounts and investments are allocated quarterly to the various funds based on the fund’s contribution to the pool. The City has stated investments at fair value in the statement of net position and balance sheet. The fair value of investments is based on published market prices and quotations from major investment brokers.

Cash and investments with fiscal agent represent funds held by various trustees from proceeds of the issuance of bonds in order to establish required reserve funds and to pay bond issuance costs per the respective trust agreements.

Credit Risk – The City’s investment policy limits certain types of investments to various ratings.

Custodial Credit Risk—Deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City has a deposit policy for custodial risk that requires collateralization on certificates of deposit and repurchase (and reverse) agreements. In addition, the City maintains custodial agreements with certain independent third parties.

Concentration of Credit Risk – The City places no limit on the amount the City may invest in any one issuer.

Interest Rate Risk – Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds.

Restricted Assets
Certain proceeds of the general obligation debt and enterprise debt are classified as restricted assets on the balance sheet because their use is limited by applicable debt covenants. “Restricted cash and investments with fiscal agents” is used to report resources set aside for potential deficiencies in the repayment ability of the debt service fund and for payment of construction projects undertaken by the City.

Land Held for Resale
Land held for resale is recorded in the Low and Moderate Housing Asset Special Revenue Fund. Land held for resale is valued at the lower cost or estimated net realizable value.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Internal Balances
Interfund transactions are reflected as loans, services provided or used, or reimbursements or transfers. Loans reported as receivables and payables, as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the fund financial statements and are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Notes Receivable
The City engages in programs designed to encourage construction or improvement of housing for persons with low to moderate income and to encourage business development. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City’s terms. For financial statement purposes, the City has established an estimated allowance for potentially uncollectible loans. The balance of notes receivable includes loans that may be forgiven if certain terms and conditions of the loans are met.

Leases
Lessee: The City is a lessee for a noncancellable lease of a building. The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases, which it has determined is the prime rate at the inception of the lease. • The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Leases (Continued)
Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and enterprise fund financial statements.

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

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease. • The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Capital Assets
Capital assets, which include public domain (infrastructure) capital assets consisting of certain improvements, including streets (pavements, medians, curbs/gutters, sidewalks, traffic signals, monument signs and bridges), storm drains and water/sewer systems and improvements, are reported in the applicable governmental or business-type activities column in the government-wide financial statements.

Generally, capital asset acquisitions in excess of $5,000 (general capital assets) and $30,000 (infrastructure) are capitalized if they have an expected useful life of one year or more. Acquisitions of capital assets (including infrastructure) are recorded at historical cost at the time of purchase. Donated capital assets are recorded at their fair value at the date of donation.

Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the City are depreciated using the straight-line method over the following estimated useful lives:

Land improvements 20-50 years
Buildings and improvements 20-50 years
Machinery, equipment and vehicles 6-10 years
Infrastructure 20-100 years
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Subscription-Based Information Technology Arrangements (SBITAs) Lessee: The City enters into noncancellable subscription-based information technology arrangements (SBITAs) for the acquisition of various information technology services. SBITAs are accounted for in accordance with GASB Statement No.

96. Upon commencement of a subscription, the City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. Subscription liabilities are recognized when their initial individual values are $5,000 or more. The subscription liability is initially measured at the present value of payments expected to be made during the subscription term and is subsequently reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, and any directly attributable initial costs. The subscription asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to SBITAs include determining the discount rate used to discount expected subscription payments to present value, the subscription term, and the composition of subscription payments.

The City generally uses the interest rate charged by the subscription provider as the discount rate. When the interest rate charged by the provider is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs, which is the prime rate at the inception of the subscription.

Compensated Absences
It is the City’s policy to permit employees to accumulate a limited amount of earned but unused leave time. Permanent employees earn from 12 to 30 vacation days per year depending upon their length of employment. Accumulated vacation days can be carried forward up to 2 years. Each year, by September 30, certain employees may request to receive a cash payment for the value of all or a portion of their accumulated vacation leave. Upon termination or retirement, employees are compensated for the value of accrued vacation leave.

For full-time employees, sick leave is accumulated at the rate of 12 days per year up to a maximum of 250 days.

Employees may convert 25% of unused sick leave to vacation time during a fiscal year up to the limit of the employee’s maximum vacation accrual level. Upon retirement, employees may also convert a portion of their unused sick leave into service credit through the California Public Employees Retirement System.

The vacation and sick leave balances, along with compensatory leave and holiday hours are reflected in the Employee Benefits Fund, which is part of the Internal Service Funds in the Statement of Net Position.

Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discounts. Bond issuance costs are expensed immediately.

In the fund financial statements, governmental fund types 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 financing sources.

Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether withheld from the actual debt proceeds received, are reported as debt service expenditures.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Pensions
In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting (see Note 11 and the RSI section immediately following the Notes to the Basic Financial Statements), regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The City recognizes a net pension liability for the qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as the City’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred.

Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as a liability when incurred and is not recognized in the governmental funds’ financial statements.

Unearned Revenue
Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).

Unavailable Revenue
In the governmental fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations.

Transfers
In the fund financial statements interfund transfers are recorded as transfers in (out) except for transactions that are described below:

Charges for services are recorded as revenues of the performing fund and expenditures of the requesting fund.

Unbilled costs are recognized as an asset of the performing fund at the end of the fiscal year.

Reimbursements for expenditures, initially made by one fund that is properly applicable to another fund, are recorded as expenditures in the fund that is reimbursed.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Net Position
The government-wide and enterprise fund financial statements utilize a net position presentation. Net position is reported as net investment in capital assets, restricted or unrestricted.

Net investment in capital assets – groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the net position balance.

Restricted – represents external restrictions imposed by creditors, grantors, contributors, or laws of regulations of other governments and restrictions imposed by law through constitutional provisions or enable legislation.

Unrestricted – represents net position of the City, not restricted for any project or other purpose.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources as they are needed.

Fund Balances
The governmental fund financial statements present fund balances based on classifications the comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classification used in governmental fund financial statements are as follows.

Nonspendable Fund Balance – Amounts cannot be spent either because they are in nonspendable form (such as inventory or prepaid expenses, and long-term loans and notes receivable) or because they are legally or contractually required to be maintained intact (such as principal of a permanent fund).

Restricted Fund Balance – Amounts with external constraints placed on the use of these resources (such as debt covenants, grantors, contributors, or laws or regulations of other governments, etc.) or imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance – Amounts that can only be used for specific purposes pursuant to constraints imposed by City Council, the City’s highest level of decision-making authority, through an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified uses through the same type of formal action taken to establish the commitment.

Assigned Fund Balance – Amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. For all governmental funds other than the General Fund, any remaining positive amounts not classified as nonspendable, restricted or committed must be designated as assigned fund balance.

Unassigned Fund Balance – These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories, or negative balances in all other funds.

In circumstances when expenditures are made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and unassigned.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances (Continued) Minimum Fund Balance Policy
The City’s minimum fund balance policy requires the City to maintain reserves equal to 2 months (17%) and 3 months (25%) of costs based on the annual adopted budget for Enterprise Funds and the General Fund, respectively. The use of these funds shall be allowed in situations resulting from the loss of revenues and must be replenished before the end of the following fiscal year.

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 CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

Use of Estimates
The preparation of financial statements in conformity with United States generally accepted accounting principles (U.S.

GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Actual results could differ from those estimates.

Property Tax Calendar
Madera County is responsible for assessing, collecting and distributing property taxes in accordance with enabling legislation. Revenue received is based on an allocations factor calculated by the County under the provisions of Proposition 13 plus a percentage of the increase in market value in specific areas. The City’s property tax is liened based on the assessed value listed as of the prior January 1 for all real and personal property located in the City. Property sold and the assessment date (January 1) is reassessed and the amount of property tax assessed is prorated.

Secured property taxes are levied on October 1 and are due in two installments on November 1 and February 1. The tax becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is levied on July 1, due on July 31, and becomes delinquent after August 31.

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

Statement of Net Position:

Cash and investments $ 34,980,333
Restricted cash and investments with fiscal agents 811,243 Statement of Fiduciary Net Position:

Cash and investments 2,066,216
Restricted cash with fiscal agents 782,190
Total cash and investments 38,639,982 $
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
40 NOTE 2 – CASH AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2023 consist of the following:

Cash on hand $ 2,000
Deposits with financial institutions 8,714,962
Investments 29,923,020
Total cash and investments 38,639,982 $
A. Deposits
The carrying amount of the City’s cash deposits was $8,590,848 at June 30, 2023. Bank balances were $8,934,488, the total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the City’s name as described below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments of fiscal agents is credited directly to the related fund.

Investments Authorized by the California Government Code and the City’s Investment Policy In accordance with Section 53601 of the California Government Code and the City’s investment policy, the City is authorized to invest in Certificates of Deposit, the California Local Agency Investment Fund (LAIF), U.S. Treasury Obligations, U.S. Government Agencies, Medium-Term Notes, Bankers’ Acceptances, and Commercial Paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided by Moody’s Investor Services, Inc. or Standards and Poor’s Corporation. In accordance with the City’s investment policy, the City will not invest in repurchase agreements, reverse repurchase agreements, or any other type of investments prohibited by California Government Code Section 53601.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
41 NOTE 2 – CASH AND INVESTMENTS (Continued)
A. Deposits (Continued)
Disclosure Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

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

Investment Type Total
12 Months
or Less 13 to 24 Months
State Investment Pool $ 13,006,764 $ 13,006,764 $ -
Federal Agency Securities:

U.S. Treasury Notes 15,322,824 12,676,688 2,646,136
Held by fiscal agent:

Treasury Obligation Funds 1,241,959 1,241,959 -
Money Market Funds 351,473 351,473 -
Total $ 27,276,884 29,923,020 $ 2,646,136 $
Disclosure Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of year-end for each investment type:

Investment Type Total AAA AAAm Not Rated
State Investment Pool $ 13,006,764 $ - $ 13,006,764 - $ Federal Agency Securities:

U.S. Treasury Notes 15,322,824 15,322,824 - -
Held by fiscal agent:

Treasury Obligation Funds 1,241,959 1,241,959 - -
Money Market Funds 351,473 - - 351,473
Total $ 15,322,824 29,923,020 $ 1,241,959 $ 13,358,237 $ Ratings as of Year-End
Concentration of Credit Risk
The investment policy of the City contains no limitation on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City did not have investments in any one issuer (other than U.S.

Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City’s investments for the year ended June 30, 2023.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
42 NOTE 2 – CASH AND INVESTMENTS (Continued)
A. Deposits (Continued)
Investment Valuation
Investments, including derivative instruments that are not hedging derivatives, are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the Statement of Net Position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 investments reflect prices quoted in active markets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Investments’ fair value measurements are as follows at June 30, 2023:

Investments Fair Value Level 1 Inputs Level 2 Inputs Level 3 inputs Debt securities:

U.S. Treasury Notes 15,322,824 $ 15,322,824 $ - $ - $
Treasury Obligation Funds 1,241,959 1,241,959 - -
Investments not subject to fair value
heirarchy:

Money Market Funds 351,473 $
State Investment Pool 13,006,764
Total $ 13,358,237
Fair Value Measurements
Treasury obligations are valued at marked to market based on quoted market closing prices.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amount based upon the City’s pro-rata share of the amortized cost provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based in the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Although the City did not participate in any securities lending transactions or enter into any reverse repurchase agreements during the year, the City does have an investment in LAIF in the amount of $13,006,764. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members designated by State statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different from the fair value of the City’s position in the pool.

Investment in money market funds
Investment in the money market funds is valued at $351,473 and have a maturity of less than one year and are presented at amortized costs, which approximates fair value. As they are presented at amortized costs, they are not an investment type that can be categorized at any level in the fair value hierarchy.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
43 NOTE 3 – RECEIVABLES
Receivables as of the June 30, 2023 year-end for the City’s individual major funds and nonmajor funds, including applicable allowances for uncollectible accounts, are as follows:

Governmental Activities
CDBG
Grants Measure N Other Total
Special Special Capital Governmental Governmental
General Revenue Revenue Projects Funds Funds
Receivables:

Accounts receivable $ 474,693 $ 53 $ - $ 29,527 - $ $ 504,273 Intergovernmental receivables 763,658 198,264 468,935 34,714 3,105,772 4,571,343 Notes receivable 22,179,615 - - 1,516,812 - 23,696,427
Less: allowance for
for uncollectibles - - - - - -
Net receivables 1,238,351 $ 22,377,932 $ 468,935 $ 34,714 $ 4,652,111 $ 28,772,043 $ Business-Type Activities - Enterprise Funds
Nonmajor
Solid Storm
Water Waste Sewer Drain Airport Total
Receivables:

Accounts receivable 293,608 $ 250,498 $ 217,708 $ 25,066 $ - $ 786,880 $ Intergovernmental receivables - - 30,907 174,842 30,615 236,364 Less: allowance for
for uncollectibles (23,715) (10,555) (11,853) (1,726) - (47,849) Net receivables 269,893 $ 239,943 $ 236,762 $ 198,182 $ 30,615 $ 975,395 $ Receivables are presented on the Statement of Net Position as follows:

Governmental Business-Type
Activities Activities Total
Accounts receivable, net $ 504,273 $ 739,031 $ 1,243,304 Intergovernmental receivables 4,571,343 236,364 4,807,707 Notes receivable, net - 23,696,427 23,696,427
Total 28,772,043 $ 975,395 $ 29,747,438 $
Receivables in governmental funds which are not expected to be collected in one year are as follows:

Notes receivable in CDBG Grants Special Revenue Fund $ 22,179,615 Notes receivable in Home Investment Program Grants Special Revenue Fund 1,447,962 Notes receivable in Low and Moderate Income Housing Asset Special Revenue Fund 68,850 Total $ 23,696,427
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
44 NOTE 4 – INTERNAL BALANCES
Due from and due to balances at June 30, 2023 are as follows:

Due From Due To
Governmental Funds:

Major Funds:

General Fund 1,390,503 $ - $
Capital Projects Fund - 24,395
Nonmajor Funds:

SAFER Fire Grant Fund 27,567
RSTP Special Revenue Fund 585,617 -
Transit System Special Revenue Fund 603,873 -
Information Technology Internal Service Fund 23,070 -
Low and Moderate Low Income Housing Asset Fund 36,975 - Fiduciary Funds:

Successor Agency Private Purpose Trust Fund 89,006 -
Total $ 1,390,503 1,390,503 $
The “due from” balance of $1,390,503 in the General Fund listed above represents loans made to other funds to cover operating cash deficit balances.

Advances to and from balances at June 30, 2023 are as follows:

Advances To Advances From
Governmental Funds:

Major Funds:

General Fund $ - 410,032 $
Impact Fees Special Revenue Fund 410,032 -
Total $ 410,032 410,032 $
The balance of $410,032 for advances from other funds in the Impact Fees Special Revenue Fund consists of cash advances from the General Fund and will be paid back with future impact fees. The City has indicated that there are no plans to collect on the advance within the next year.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
45 NOTE 5 – TRANSFERS
Transfers for the year ended June 30, 2023, are summarized as follows:

Transfers In Transfers Out
Governmental Funds:

Major Funds:

General Fund 4,540,672 $ 1,400,783 $ (1)
CDBG Grants Special Revenue Fund - 1,011,829 (2)
Impact Fees Special Revenue Fund - 1,288,000 (12)
Measure N Special Revenue Fund 1,888,933 (5)
Debt Service Fund 1,395,059 -
Capital Projects Fund 5,786 -
Nonmajor Funds:

State Gas Tax Special Revenue Fund - 42,564 (3)
SB1 Special Revenue Fund 14,502 637,503 (4)
RSTP Special Revenue Fund - 683,909 (10)
Street and Road Fund (LTF) Special Revenue Fund 288,682 219,942 (8) Measure T Special Revenue Fund - 365,420 (7)
Transit System Special Revenue Fund 36,216 -
HOME Investment Partnership Program
Special Revenue Fund 3,018 - (9)
EDBG Grant Special Revenue Fund 14,847 -
Enterprise Funds:

Major Funds:

Water Enterprise Fund 53,481 4,011 (11)
Solid Waste Enterprise Fund - 5,278 (6)
Sewer Enterprise Fund - 5,278 (11)
Nonmajor Funds:

Storm Drain Enterprise Fund 2,213,109 3,420,332 (13)
Total $ 9,769,577 9,769,577 $
The significant transfers out noted above were for the following purposes:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13) Transfer out of Storm Drain in the amount of $2,213,109 to General Fund the Humboldt Avenue Street Improvements Project.

Transfer out of Water Fund to Sewer in the amount of $5,278 to General Fund for eligible capital outlay related expenditures.

Transfer out from Impact Fees Fund to the General Fund of $488,000 for the fire expansion project and $800,000 to the Storm Drain Fund for the Humboldt Avenue Street Improvements Project.

Transfer out of RSTP of $683,909 to Storm Drain for Humboldt Avenue Street Improvements Project.

Transfer out of Solid Waste of $5,728 to General Fund for eligible capital outlay related expenditures.

Transfers out consist of $78,978 to the Storm Drain Fund for the Humboldt Storm Drain Project, $7,582 to Streets and Roads Fund for Ave 24 Project, $150,292 to Streets & Roads Fund for general street maintenance, $92,352 to Streets & Roads for general street maintenance, and $36,216 to the Transit System fund for Transit Bus related costs.

Transfer out of Street & Road (LTF) Fund of $219,942 to Storm Drain Fund for Humboldt Avenue Street Improvements Project.

Transfer out of Home Investment Partnership Program Fund in the amount of $3,018 to EDBG to cover costs associated with Grant management to cover contracted costs that no administrative program income is available.

General Fund transfer out $14,502 to RMRA for projects are required by State, and $1,329,855 for debt service.

Transfer out of $1,000,000 from CDBG to the Storm Drain Fund for the Humboldt Avenue Street Improvements Project.

State Gas Tax transfer of $36,778 to Street & Road (LTF) Fund for the Chowchilla Blvd Project, State Gas Tax transfer out of $65 to the Capital Projects fund for the Berenda Slough Bridge, State Gas transfer out of $5,033 to Capital Projects for the Riverside pedestrian improvement project, and transfer out of the State Gas Tax Fund of $687 to Capital Projects Fun for the Alley paving project.

Road Maintenance and Rehabilitation transfer out of $637,503 to Storm Drain Fund for Fire Expansion.

Measure N Transfer out of $1,823,729 to General Fund to cover Measure N Projects and transfer out of Measure N Fund of $65,204 to Debt Service for Pension Bond Payment.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
46 NOTE 6 – CAPITAL ASSETS
Capital assets activity of the governmental activities for the year ended June 30, 2023, was as follows:

Balance
July 1, 2022 Additions Reductions
Balance
June 30, 2023
Capital assets, not being depreciated:

Land 721,926 $ - $ - $ 721,926 $
Construction in progress 2,642,734 3,038,329 - 5,681,063 Total capital assets, not being depreciated 2,642,734 3,760,255 - 6,402,989 Capital assets, being depreciated/amortized:

Land improvements 1,569,968 - 1,569,968 -
Buildings and improvements 7,677,380 - 7,677,380 -
Right-to-use leased buildings and improvements 173,689 - 173,689 - SBITA - Right-to-use asset - 56,745 - 56,745
Machinery, equipment and vehicles 5,762,202 555,767 (229,985) 6,087,984 Infrastructure - 20,761,872 - 20,761,872
Total capital assets, being depreciated/amortized 612,512 35,945,111 (229,985) 36,327,638 Less accumulated depreciation/amortization for:

Land improvements (1,165,426) (74,548) - (1,239,974)
Buildings and improvements (3,291,316) (225,200) - (3,516,516) Right-to-use leased buildings and improvements (144,470) (10,559) - (155,029) SBITA - Right-to-use asset (5,135) - - (5,135)
Machinery, equipment and vehicles (3,191,777) (522,955) 141,108 (3,573,624) Infrastructure (9,726,297) (612,847) 7,699 (10,331,445) Total accumulated depreciation/amortization (1,451,244) (17,519,286) 148,807 (18,821,723) Total capital assets being depreciated/amortized, net 18,425,825 (838,732) (81,178) 17,505,915 Governmental activities capital assets, net 22,186,080 $ 1,804,002 $ (81,178) $ 23,908,904 $ Depreciation expense was charged to the following functions/programs of the governmental activities of the primary government as follows:

Governmental Activities:

General government $ 317,188
Public safety 344,159
Highways and streets 657,236
Culture and recreation 80,014
52,647
Total depreciation/amortization expense - governmental activities 1,451,244 $ Capital assets held by government's internal service funds are charged to the various functions based on their usage of the assets
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
47 NOTE 6 – CAPITAL ASSETS (Continued)
Capital assets activity of the business-type activities ended June 30, 2023 was as follows:

Balance
July 1, 2022 Additions Reductions
Balance
June 30, 2023
Capital assets, not being depreciated:

Land $ 1,253 2,030,152 $ - $ 2,031,405 $
Construction in progress 270,803 1,454,870 - 1,725,673
Total capital assets, not being depreciated 2,300,955 1,456,123 - 3,757,078 Capital assets, being depreciated:

Land improvements - 1,253,762 - 1,253,762
Buildings and improvements - 3,989,173 - 3,989,173
Machinery, equipment, and vehicles 73,556 1,610,669 - 1,684,225 Infrastructure 239,357 26,814,028 - 27,053,385
Total capital assets, being depreciated 312,913 33,667,632 - 33,980,545 Less accumulated depreciation for:

Land improvements (37,559) (873,328) - (910,887)
Buildings and improvements (78,930) (1,814,289) - (1,893,219) Machinery, equipment, and vehicles (142,666) (620,302) 196 (762,772) Infrastructure (590,283) (8,659,730) 3 (9,250,010)
Total accumulated depreciation (11,967,649) (849,438) 199 (12,816,888) Total capital assets being depreciated, net (536,525) 21,699,983 199 21,163,657 Business-type activities capital assets, net $ 919,598 24,000,938 $ 199 $ 24,920,735 $ Depreciation expense was charged to the following functions/programs of the governmental activities and business-type activities of the primary government as follows:

Business-Type Activities:

Water $ 506,149
Sewer 311,679
Storm drain 15,925
Airport 15,685
Total depreciation expense - business-type activities $ 849,438 NOTE 7 – SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAS) AS A LESSEE In fiscal year 2023, the City entered a three-year SBITA as a lessee for OpenGov software, which has been recorded in the Information Technology Internal Service Fund. An initial SBITA liability was recorded in the amount of $56,745 during fiscal year 2023. As of June 30, 2023, the value of the SBITA liability was $38,745. The City is required to make annual principal and interest payments of $18,900 and $19,845, respectively. The SBITA has an effective interest rate of 0%. The software has a three-year subscription term. The value of the right-to-use software as of the end of the current fiscal year was $56,745 and had accumulated amortization of $4,729. In accordance with GASB 96, certain variable and other payments are not included in the measurement of the subscription liability. There were no outflows of resources recognized in the reporting period for variable and other payments.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
48 NOTE 8 – LONG-TERM DEBT
The following is a summary of debt transactions of the City for the year ended June 30, 2023:

Amounts
Balance Balance Due Within
June 30, 2022 Additions Reductions June 30, 2023 One Year Governmental Activities:
2005 Civic Center Bond 3,565,000 $ - $ (210,000) $ 3,355,000 $ - $ 2017 Series Lease Revenue Bonds 3,595,000 - (20,000) 3,575,000 25,000 State of California NSP Loan 9,913,215 - - 9,913,215 -
2019 Taxable Pension Obligation Bonds 9,730,000 - (495,000) 9,235,000 530,000 Add: Premiums 143,765 - (5,990) 137,775 -
Less: Discounts (108,241) - 6,456 (101,785) -
Compensated absences 471,616 - 46,686 518,302 382,055
Total Governmental Activities Long-Term Debt $ - 27,310,355 $ (677,848) $ 26,632,507 $ 937,055 $ Business-Type Activities:

Direct Placements and Direct Borrowings:

State Water Revolving Loan 2,564,793 $ - $ (80,150) $ 2,484,643 $ 240,447 $ Total Direct Placements and Borrowings 2,564,793 (80,150) - 2,484,643 240,447 2017 Series Water Revenue Bonds 8,095,000 (35,000) - 8,060,000 - 2017 Series Wastewater Revenue Bonds 3,080,000 (35,000) - 3,045,000 40,000 Add: Premiums 500,502 - (24,253) 476,249 -
Total Business-Type Activities Long-Term Debt $ - 14,240,295 $ (174,403) $ 14,065,892 $ 280,447 $ Long-term debt payable at June 30, 2023 is comprised of the following individual issues:

A. 2005 Civic Center Bond
In 2005, the City issued Revenue Bonds in the aggregate principal amount of $5,890,000 to refund the 2002 $1,900,000 Civic Center Project Private Placement Financing and to finance certain public improvements. The original amount of the note ($5,890,000) was secured by revenues of the Public Financing Authority (the Authority) consisting primarily of lease payments to be received by the Authority from the City under a lease agreement dated July 1, 2005, by and between the Authority and the City which are payable from the City’s General Fund for lease by the City of certain real property and public facilities located in the City, and then constituting the Civic Center Project. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. Semiannual payments range from $7,875 to $357,875 and are payable each January 1 and July 1 through 2036. During the year ended June 30, 2017 the 2005 Civic Center Bond was partially refunded by the 2016 Civic Center Bond for the purposes of savings on future debt service payments.

Annual debt service requirements to maturity of the 2005 Civic Center Bond are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 158,331 - $
2025 210,000 153,738
2026 220,000 144,331
2027 230,000 134,488
2028 250,000 133,706
2029-2033 1,415,000 390,269
2034-2036 1,030,000 69,188
Total $ 1,184,051 3,355,000 $
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
49 NOTE 8 – LONG-TERM DEBT (Continued)
B. 2017 Series Lease Revenue Bonds
In 2018, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $3,630,000 to finance the costs of clean renewable energy projects and other capital improvements. The original amount of the bonds ($3,630,000) were secured by a pledge of and lien on revenues consisting primarily of lease payments from the City. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. Principal is payable annually on June 1 in amounts ranging from $10,000 to $375,000, with interest due semi-annually at variable rates between 2.6% - 5.0%, maturing on June 1, 2047.

Annual debt service requirements to maturity of the 2017 Series Lease Revenue Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 25,000 $ 156,724
2025 25,000 155,929
2026 155,117 -
2027 30,000 155,117
2028 40,000 153,961
2029-2033 300,000 744,051
2034-2038 640,000 665,295
2039-2043 1,235,000 477,509
2044-2047 139,712 1,280,000
Total $ 2,803,415 3,575,000 $
C. 2019 Pension Obligation Bonds
In 2019, the Chowchilla Public Financing Authority issued Pension Obligation Bonds in the aggregate principal amount of $10,500,000 to finance a portion of the City’s unfunded accrued actuarial liability to the California Public Employees’ Retirement System (CalPERS) for the benefit of the City’s employees and pay the costs of issuance of the bonds. The bonds are unsecured obligations payable from any source of legally available funds of the City, including, but not limited to, amounts held by the City on deposit in its General Fund. Principal is payable annually on July 15 in amounts ranging from $10,000 to $640,000, with interest due semi-annually at variable rates between 2.94% - 4.75%, maturing on July 15, 2046. There is a provision whereby if the City is unable to make payment, does not comply with bond covenants, or files for reorganization or arrangement, the Trustee may declare the entire unpaid principal and interest immediately due and payable.

Annual debt service requirements to maturity of the 2019 Pension Obligation Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 530,000 $ 365,675
2025 575,000 347,707
2026 620,000 327,555
2027 470,000 308,571
2028 510,000 290,971
2029-2033 2,945,000 1,124,870
2034-2038 2,300,000 523,188
2039-2043 1,010,000 181,450
2044-2047 275,000 14,844
Total $ 3,484,831 9,235,000 $
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
50 NOTE 8 – LONG-TERM DEBT (Continued)
D. State of California Neighborhood Stabilization Program (NSP) Loan In fiscal year 2010-11, the City entered into a loan agreement with the Department of Housing and Community Development (the DHCD). The City could borrow up to $10,000,000 to assist Olivero Ranch, LLC, in financing construction of 31 multi-family units, of which 30 units will be restricted to households at or below 50% of all AMI households in the City. The entire outstanding principal balance plus all accrued but unpaid interest is due in full on the 55th anniversary of the date of the project’s receipt of certificates of occupancy. There is no interest due on the loan; however, any program income resulting from the financing provided to Olivero Ranch, LLC will be returned to the DHCD. The loan will be secured on the property on which the project is located. All loan payments will be generated by the operation of the housing development by the private developer which will pass through the City and back to the State.

E. 2017 Series Water Revenue Bonds
In 2017, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $8,160,000 to finance capital projects in the Water Fund. The original amount of the bonds ($8,160,000) were secured by installment payments to be made by the City under an installment sale agreement. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. These installment payments are secured by a pledge of and lien on the net revenues of the Water Fund. Principal is payable annually on June 1 in amounts from $10,000 to $775,000, with interest due semi-annually at variable rates between 2.6% - 5.0%, maturing on June 1, 2047.

Annual debt service requirements to maturity of the 2017 Series Water Revenue Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 358,737 - $
2025 25,000 358,737
2026 40,000 357,737
2027 65,000 356,137
2028 90,000 353,574
2029-2033 855,000 1,693,483
2034-2038 1,735,000 1,478,543
2039-2043 3,085,000 986,420
2044-2047 280,461 2,165,000
Total $ 6,223,829 8,060,000 $
F. 2017 Series Wastewater Revenue Bonds
In 2017, the Chowchilla Public Financing Authority issued Revenue Bonds in the aggregate principal amount of $3,310,000 to finance capital projects in the Sewer fund. The original amount of the bonds ($3,310,000) was secured by installment payments to be made by the City under an installment sale agreement. There is a provision whereby if the City is unable to make payment or does not comply with bond covenants, the Trustee may, and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of Bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. These installment payments are secured by a pledge of and lien on the net revenues of the Sewer Fund. Principal is payable annually on June 1 in amounts from $75,000 to $275,000, with interest due semi-annually at variable rates between 2.33% - 4.58%, maturing on June 1, 2047.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
51 NOTE 8 – LONG-TERM DEBT (Continued)
F. 2017 Series Wastewater Revenue Bonds (Continued)
Annual debt service requirements to maturity of the 2017 Series Wastewater Revenue Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 135,131 40,000 $
2025 133,531 45,000
2026 131,731 50,000
2027 129,731 45,000
2028 128,026 50,000
2029-2033 602,920 370,000
2034-2038 504,967 580,000
2039-2043 348,744 905,000
2044-2047 960,000 114,958
Total $ 2,229,739 3,045,000 $
G. State Water Revolving Loan
The City entered into a loan agreement in July 2014 with the State Water Resources Control Board for the purpose of undertaking a project which will enable the City to meet safe drinking water standards established pursuant Chapter 4 of Part 12 of Division 104 of the health and safety Code and the California Code of Regulations, Title 22, or to address other health concerns. The City was awarded a loan in the amount of $3,205,991 for the purpose of installing water meters citywide. The loan is to be repaid over a 20-year period at an interest rate of 0%, which does not begin until the project is completed. In the event of a default, the State shall charge interest in the amount of one tenth of one percent (0.1%) of the delinquent amount each day it remains unpaid past the tenth (10th) day after the date payment was due. The City completed the project during 2018 and the first payment was due on January 1, 2019.

Annual debt service requirements to maturity of the State Water Revolving Loan are as follows:

Fiscal Year
Ending June 30 Principal
2024 $ 240,447
2025 160,300
2026 160,300
2027 160,300
2028 160,300
2029-2033 801,498
2034-2038 801,498
Total $ 2,484,643
CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
52 NOTE 8 – LONG-TERM DEBT (Continued)
H. Special Assessment District Debt
On March 15, 2017, the Chowchilla Public Financing Authority (the Authority) issued $3,138,000 of 2017 Refunding Revenue Bonds (Reassessment District No 2003-1 Greenhills) for the purpose of creating annual debt savings. The total debt service payments were reduced by $140,898. The 2017 direct placement Refunding Bonds are secured by a pledge of and first lien on the revenues to be derived from the Local Agency Bonds (2003 Local Obligations). The Authority will receive the reserve fund upon final maturity. The City acts as agent for the property owners in collecting assessment installments of principal and interest and forwarding collections to the bond Trustee. The City’s liability, in the event of delinquent assessments shall not exceed the balance of the established Reserve Fund. The amount outstanding as of June 30, 2023 is $519,000.

On April 30, 2014, the City issued $3,962,800 of 2013-1 Limited Obligation Refunding Bonds (the 2013 Local Obligations) pursuant to the provisions of the Improvement Bond Act of 1915 to refund the outstanding 2002-1 Local Obligations Improvement Bonds (the 2002-1 Local Obligations), for the purpose of creating annual debt savings. The direct placement 2013 Local Obligations are fully secured by the unpaid special assessments levied on commitment. The 2013 Local Obligations are not secured by the general taxing power of the City, the State of California, or any political subdivision of the State. The City acts as agent for the property owners in collecting assessment installments of principal and interest and forwarding collections to the bond trustee. The City’s liability in the event of delinquent assessments, shall not exceed the balance of the established Reserve Fund. The amount outstanding as of June 30, 2023 is $1,687,900.

In 2007, the City issued Community Facilities District No. 2006-1 Improvement Area 1 Special Tax Bonds in the aggregate principal amount of $8,615,000 to finance certain capital expenses of the District, to pay costs of issuance of the Bonds, and to fund two years’ capitalized interest on the Bonds. The Bonds are authorized to be issued pursuant to the MelloRoos Community Facilities Act of 1982, as amended. The Bonds ($8,615,000) are secured under the Trust indenture by a pledge and lien upon Net Taxes levied on parcels within the District and all moneys in the Special Tax Fund. The Bonds were issued for the purpose of financing the acquisition, construction, expansion, improvement, or rehabilitation of facilities to serve the area within the District and its neighboring areas. Semiannual payments range from $13,375 to $560,486 and are payable each March 1 and September 1 through 2037. The amount outstanding as of June 30, 2023 is $5,845,000.

Since the City is not obligated in any manner for special assessment debt, the debt is not recorded in these financial statements.

NOTE 9 – LEASES
A. Lease as Lessor
In 2006, the City began leasing one of its office buildings to a third party. The initial lease was for ten years and was subsequently extended with two additional five-year extensions through 2026. The City will receive monthly payments of $7,227, which is adjusted on July 1 by the United States Department of Labor, Bureau of Labor Statistics, Southern California Consumer Price Index, or 5%, whichever is less. The City recognized in lease revenue and $25,412 in interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for lease payments was $135,233. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2023, the balance of the deferred inflow of resources was $76,235.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
53 NOTE 9 – LEASES (Continued)
B. Lease as Lessee
In fiscal year 2008, the City’s Fleet Maintenance Internal Service Fund entered into a lease agreement as lessee for the acquisition and use of a building for operations. Subsequent extensions of the lease agreement have been noted through fiscal year 2025. An initial lease liability was recorded in the amount of $173,689 during fiscal year 2008. As of June 30, 2023, the value of the lease liability was $33,241. The City is required to make monthly principal and interest payments of $1,500. The lease has an effective interest rate of 7.75%. The leased building has an estimated useful life of 17 years. The value of the right-to-use asset at the end of the current fiscal year was $173,689 and had accumulated amortization of $155,029.

The future principal and interest lease payments as of June 30, 2023, are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 15,983 $ 2,017
2025 734 17,258
Total $ 2,751 33,241 $
NOTE 10 – DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the Statement of Net Position (and when applicable, the balance sheet) will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditures) until then. The City has pension related items that qualify to be reported in deferred outflows of resources. The pension-related deferred outflows of resources are described in detail in Note 11.

In addition to liabilities, the Statement of Net Position (and when applicable, the Balance Sheet) will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to future period(s) and so, will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items that qualify for reporting in this category, which are unavailable revenues and pension deferrals.

Unavailable revenues arise only under a modified accrual basis of accounting and is reported only in the governmental funds Balance Sheet. Deferred inflows of resources reported in the governmental funds for unavailable revenues are as follows:

General Fund
CDBG Grants
Special Revenue
Fund
Other
Governmental
Funds Total
Intergovernmental $ - 162,922 $ 2,323,812 $ 2,486,734 $ Notes 22,179,615 - 1,516,812 23,696,427
Total $ 22,179,615 162,922 $ 3,840,624 $ 26,183,161 $
The City has pension-related items that qualify to be reported in deferred inflows of resources. The pension-related deferred inflows of resources are described in detail in Note 11.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
54 NOTE 11 – DEFINED BENEFIT PENSION PLAN
A. General Information About the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing MultipleEmployer Plan (the Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.

Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of Chowchilla (City) sponsors seven rate plans (three miscellaneous and four safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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

The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement law.

The rate plan provisions and benefits in effect at June 30, 2023 are summarized as follows:

Miscellaneous
1st Tier
Miscellaneous
2nd Tier
Miscellaneous
PEPRA
Prior to January 1, 2011 thru On or after
Hire date January 1, 2013 December 31, 2012 January 1, 2013 Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8% 7% 6.75%
Required employer contribution rates 12.210% 8.630% 7.470% Safety
1st Tier
Safety (Police)
2nd Tier
Safety (Police)
PEPRA
Prior to January 1, 2011 thru On or after
Hire Date January 1, 2013 December 31, 2012 January 1, 2013 Benefit formula 3% @ 55 2% @ 55 2% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 2.4% to 3.0% 1.426% to 2.0% 1.426% to 2.0% Required employee contribution rates 9% 7% 10.0%
Required employer contribution rates 21.840% 14.740% 10.800% Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City’s contribution for the unfunded liability was $177,520 for the fiscal year ended June 30, 2023.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
55 NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
A. General Information About the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City’s contributions to the Plan recognized as a part of pension expense for the year ended June 30, 2023 were $678,921.

As of June 30, 2023, the City reported a net pension liability (asset) for its proportionate share of the net pension liability (asset) of the Plan of $3,215,744.

The City’s net pension liability (asset) for the Plan is measured as the proportionate share of the net pension liability (asset). The net pension liability (asset) of the Plan is measured as of June 30, 2022, and the total pension liability (asset) for the Plan used to calculate the net pension liability (asset) 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 (asset) was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability (asset) for the Plan as of June 30, 2021 and 2022 was as follows:

Proportion - June 30, 2021 -0.0792%
Proportion - June 30, 2022 0.0278%
Change - Increase (Decrease) 0.1070%
For the year ended June 30, 2023, the City recognized pension expense of $7,679,004. At June 30, 2023, the City reported deferred outflows of resources and inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to the measurement date $ 738,194 $ - Changes of assumptions 327,188 -
Differences between actual and expected experience 94,863 39,569 Net differences between projected and actual earnings on plan 553,132 - investments
Change in employer's proportion 4,559,731 -
Differences between the employer's actual contributions and the employer's proportionate share of contributions 2,180,223 - Total $ 2,219,792 6,273,108 $
$738,194 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ended June 30, 2024. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension revenue as follows:

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
56 NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Year Ended
June 30
2024 $ 1,090,112
2025 1,165,450
2026 721,608
2027 337,952
2028 -
Thereafter -
The total pension liabilities (assets) in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry- Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%(1)
Mortality Derived using CalPERS' Membership Data for
all Funds(2)
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of 2021 actuarial experience study. Further details of the Experiences Study can be found on the CalPERS website.

C. Discount Rate
The discount rate used to measure the total pension liability (asset) was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability (asset).

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
57 NOTE 11 – DEFINED BENEFIT PENSION PLAN (Continued)
D. Actuarial Assumptions
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Asset Class
Assumed Asset
Allocation
Real Return Years
1-10(1,2)
Global equity - cap-weighted 30.00% 4.45%
Global equity non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 27.00%
Mortgage-backed Securities 5.00% 50.00%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
Total 100.00%
(1) An expected inflation of 2.30% used for this period. (2)
Figures are based on the 2021-22 Asset Liability Management study.

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

Discount Rate -1%

5.90%
Current Discount Rate

6.90%
Discount Rate +1%

7.90%
$ 3,215,744 9,357,421 $ (1,823,213) $
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

F. Payable to the Pension Plan
The City had $24,387 of contributions due to the pension plan for the year ended June 30, 2023.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
58 NOTE 12 – POST-RETIREMENT HEALTH CARE BENEFITS
The City provides no post-employment benefits for its employees. However, former employees may be maintained on the City’s health insurance programs through the City’s Consolidated Omnibus Budget Reconciliation Act (COBRA) insurance continuation plan.

NOTE 13 – RISK MANAGEMENT
The City is a member, along with fifty-eight other public entities, of Central San Joaquin Valley Risk Management Authority (the Authority) organized under a joint powers agreement pursuant to the California Government Code for the purpose of operating and maintaining a cooperative program of self-insurance and risk management which benefits its member cities through cost reductions, insurance coverage stability, and loss control techniques. The Authority is governed by a Board of Directors, consisting of one member appointed by each member city. The Authority maintains pooled coverage programs for its member cities for workers’ compensation, liability, auto-physical damage, property, employment practices liability, and errors and omissions coverage. For workers’ compensation and liability programs, each program and program year is accounted for and administered as a separate operation.

Under the pooled liability program, expected claims are actuarially determined as are required deposits to cover those claims along with all estimated operating costs. Each year is retrospectively adjusted five years following its conclusion and any funds remaining are returned to the member city. Likewise, funds paid out in excess of their original deposits are collected from the member city.

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 Authority. The City has the right to receive refunds of the obligation to pay assessments based on a formula which, among other expenses, charges the City’s account for liability losses under $1,000,000 and workers’ compensation losses under $500,000. The Authority is a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX) for the purpose of providing excess coverage. Any claims of $500,000 up to $150,000,000 are covered under a purchased policy through the membership with the LAWCX. The Authority is a member of the California Affiliated Risk Management Authorities (CARMA) for the purpose of providing excess coverage in a risk sharing pool. The CARMA program provided coverage in excess for the Authority’s retained limit up to $19,000,000.

The financial position results of operations of the Authority are as follows for June 30, 2023:

Total assets $ 153,984,502
Total liabilities 120,022,096
Total net position $ 33,962,406
Revenues $ 73,088,767
Expenses 71,300,255
Change in net position $ 1,788,512
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 its governing documents.

The City has established the following retained limits for the coverages shown: $25,000 for liability; $100,000 for worker’s compensation; $1,000 for property damage; $500 deductible on vehicles.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
59 NOTE 14 – DEFICIT IN FUND EQUITY
A. Nonmajor Governmental Funds
RSTP Fund
A deficit in fund balance at June 30, 2023, in the amount of $275,985, is due to current year expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

SAFER Fire Grant Fund
A deficit in fund balance at June 30, 2023, in the amount of $27,567, is due to multiple years of expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

Transit System Fund
A deficit in fund balance at June 30, 2023, in the amount of $553,788, is due to multiple years of expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

Low and Moderate Income Housing Asset Fund
A deficit in fund balance at June 30, 2023, in the amount of $36,975, is due to current year expenditures in excess of revenues. This deficit is expected to be alleviated through future revenues or transfers from other funds.

B. Internal Service Funds
Employee Benefits Internal Service Fund
A deficit in net position at June 30, 2023, in the amount of $531,013, exists because the fund was established on a pay-asyou go basis for the purpose of funding the annual accrued leave liability. As employees are paid for their accumulated leave in the future, the fund in which their normal salary is charged makes a transfer to the Employee Benefit Fund to offset the expense.

C. Fiduciary Funds
Successor Agency Private Purpose Trust Fund
A deficit in net position at June 30, 2023, in the amount of $4,300,912, exists as a result of long-term debt in excess of assets that is in the process of being paid back in accordance with the Redevelopment dissolution. See footnote 16 for more information on the Successor Agency Trust Fund.

NOTE 15 – COMMITMENTS AND CONTINGENCIES
A. General Liability
There are various claims and legal actions pending against the City for which no provision has been made in the financial statements. In the opinion of the City Attorney and City Management, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
60 NOTE 15 – COMMITMENTS AND CONTINGENCIES (Continued)
B. Federal Awards and Grants
The City participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit Act as amended. Accordingly, the government’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the government anticipates such amounts, if any, will be immaterial.

C. Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration for the General Fund, special revenue funds, and capital projects funds. At June 30, 2023, certain amounts which were previously restricted, committed, or assigned for specific purposes have been encumbered in the governmental funds. Significant encumbrances included in governmental fund balances are as follows:

Restricted
Fund Balance
Committed
Fund Balance
Assigned
Fund Balance
General Fund $ - $ - $ 39,003
Nonmajor Governmental 13,500 - -
Encumbrances Included in:

NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (the Bill) that dissolved all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Chowchilla that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, the city of 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 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 5-12.

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 completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future 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 renew 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 contractually committed to a third party for the expenditure of encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the Successor Agency by the Bill.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
61 NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the Successor Agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law, and there is considerable uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue favorably to the City.

In accordance with the timeline set forth in the Bill (as modified 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, 2012.

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.

A. Cash and Investments
As of June 30, 2023, the Successor Agency has a cash and investment balance of $0.

B. Long-Term Debt
Long-term debt reported in the Successor Agency Trust Fund at June 30, 2023 was comprised of the following:

Amounts Amounts Due
June 30, June 30, Due Within More Than
2022 Additions Reductions 2023 One Year One Year
2016 Successor Agency Tax
Refunding Bond 4,940,000 $ - $ (265,000) $ 4,675,000 $ 275,000 $ 4,400,000 $ Add: Premiums 180,067 - (12,688) 167,379 - 167,379
Total 5,120,067 $ - $ (277,688) $ 4,842,379 $ 275,000 $ 4,567,379 $ C. 2016 Successor Agency Tax Allocation Refunding Bonds In 2016, the Successor Agency of the City of Chowchilla issued Tax Allocation Refunding Bonds in the aggregate principal amount of $6,190,000 to refund the 2005 RDA Tax Allocation Bonds. This was done to take advantage of lower interest rates and to save on future debt service payments. As a result, the 2005 RDA Tax Allocation Bonds are considered defeased and the liability for that bond is not included in the Fiduciary Fund (Private-Purpose Trust Fund) Statement of Net Position. The total debt service payments were reduced by $365,124. The original amount of the note - $6,190,000 – was secured by a pledge of tax revenues consisting of tax increment payments to be received by the Successor Agency.

Semiannual payments range from $5,294 to $390,294 and are payable each February 1 and August 1 through 2036.

There is a provision whereby if the Successor Agency is unable to make payment, does not comply with bond covenants, or files for reorganization or arrangement, the Trustee may declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately.

CITY OF CHOWCHILLA | JUNE 30, 2023
Notes to the Basic Financial Statements
62 NOTE 16 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued) C. 2016 Successor Agency Tax Allocation Refunding Bonds (Continued) Annual debt service requirements to maturity of the 2016 Successor Agency Tax Allocation Refunding Bonds are as follows:

Fiscal Year
Ending June 30 Principal Interest
2024 $ 275,000 $ 130,881
2025 285,000 121,056
2026 295,000 107,981
2027 310,000 92,856
2028 325,000 81,856
2029-2033 1,705,000 298,906
2034-2037 81,647 1,480,000
Total $ 915,183 4,675,000 $
D. Insurance
The Successor Agency is covered under the City of Chowchilla’s insurance policies. Therefore, the limitation and selfinsured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage can be found in Note 13.
63 REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Budgetary Comparison Schedules
General Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 64 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes $ 4,179,849 $ 4,782,205 $ 4,761,533 $ (20,672)
Licenses and permits 630,500 700,809 547,489 (153,320)
Fines and penalties 281,900 345,378 182,213 (163,165)
Intergovernmental 5,591,101 3,455,589 3,246,293 (209,296) Use of money and property 162,040 254,673 322,990 68,317 Charges for services 259,706 388,891 168,802 (220,089)
Miscellaneous 314,982 106,360 200,894 (114,088)
Total revenues 11,211,456 10,242,527 9,430,214 (812,313)

EXPENDITURES
Current:

General government 1,094,896 1,424,271 1,266,681 157,590 Public safety 4,423,479 4,556,983 4,203,095 353,888
Culture and recreation 719,127 748,202 621,623 126,579
Community development 1,046,369 1,026,169 735,678 290,491 Capital outlay 3,388,898 2,556,099 4,354,512 (965,614)
Total expenditures 9,839,970 11,144,523 11,181,589 (37,066) Excess (deficiency) of revenues
over (under) expenditures (901,996) 1,371,486 (1,751,375) (849,379)

OTHER FINANCING SOURCES (USES)
Transfers in 2,132,920 3,159,064 4,540,672 1,381,608
Transfers out (5,238,886) (5,267,003) (1,400,783) 3,866,220 Proceeds from sale of capital assets 5,083 - 5,083 -
Total other financing sources (uses) (3,105,966) (2,102,856) 3,144,972 5,247,828 Net change in fund balance $ (3,004,852) (1,734,480) $ 1,393,597 4,398,449 $ Fund balances - beginning (restated) 12,532,988
Fund balances - ending $ 13,926,585
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Budgetary Comparison Schedules
CDBG Grants Special Revenue Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 65 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental 1,827,824 $ 2,076,759 $ 763,459 $ (1,313,300) $ Use of money and property 5,122 14,616 25,859 11,243
Charges for services 7,400 7,400 - (7,400)
Total revenues 2,098,775 1,840,346 789,318 (1,309,457)

EXPENDITURES
Current:

Community development 1,879,925 1,843,406 517,413 1,362,512 Capital outlay - - 2,013 (2,013)
Total expenditures 1,879,925 1,843,406 519,426 1,360,499 Excess (deficiency) of revenues
over (under) expenditures 218,850 (3,060) 269,892 51,042

OTHER FINANCING SOURCES (USES)
Transfers in 40,000 40,000 - (40,000)
Transfers out (825,086) (1,000,002) (1,011,829) (11,827) Total other financing sources (uses) (960,002) (785,086) (1,011,829) (51,827) Net change in fund balance $ (741,152) (788,146) $ (741,937) $ (785) Fund balances - beginning 1,006,871
Fund balances - ending $ 264,934
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Budgetary Comparison Schedules
Impact Fees Special Revenue Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 66 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 19,806 $ 67,639 $ 121,813 $ 54,174 Charges for services 1,537,428 1,453,146 1,240,141 (297,287) Total revenues 1,605,067 1,472,952 1,361,954 (243,113)

EXPENDITURES
Current:

Public safety - - 1,755 (1,755)
Highways and streets - - 8,796 (8,796)
Culture and recreation - - 288 (288)
Capital outlay 316,900 - 315,869 1,031
Total expenditures 316,900 - 326,708 (9,808)
Excess (deficiency) of revenues
over (under) expenditures 1,288,167 1,472,952 1,035,246 (252,921)

OTHER FINANCING SOURCES (USES)
Transfers out (1,828,000) (1,828,000) (1,288,000) 540,000 Total other financing sources (uses) (1,828,000) (1,828,000) (1,288,000) 540,000 Net change in fund balance $ (539,833) (355,048) $ (252,754) $ 287,079 Fund balances - beginning 4,596,141
Fund balances - ending $ 4,343,387
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Budgetary Comparison Schedules
Measure N Special Revenue Fund
The notes to the budgetary comparison schedules are an integral part of this statement. 67 Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes 2,491,400 $ 2,478,505 $ 2,598,614 $ 120,109 $
Use of money and property 46,105 11,437 37,771 83,876
Miscellaneous 446 - - 446
Total revenues 2,525,056 2,502,837 2,682,936 157,880

EXPENDITURES
Current:

General government - 1,819 1,760 59
Public safety 1,128,221 1,110,964 881,682 229,282
Capital outlay 766,525 97,852 97,852 -
Total expenditures 1,210,635 1,894,746 883,442 327,193
Excess (deficiency) of revenues
over (under) expenditures 1,314,421 608,091 485,073 1,799,494

OTHER FINANCING SOURCES (USES)
Transfers out (2,537,278) (1,710,098) (1,888,933) 648,345 Total other financing sources (uses) (2,537,278) (1,710,098) (1,888,933) 648,345 Net change in fund balance $ (1,222,857) (1,102,007) $ (89,439) $ 1,133,418 Fund balances - beginning 3,289,140
Fund balances - ending $ 3,199,701
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Notes to the Budgetary Comparison Schedules
68 NOTE 1 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information
The City establishes annual budgets for the General, Special Revenue Funds, and Capital Projects Funds. Except for encumbrances and long-term projects in progress, which are carried forward to the following year, all appropriations remaining will lapse at year end. The following procedures are followed in establishing the budgetary data reflected in the budgetary comparison schedules:
1) The department heads prepare a budget request based upon the previous year’s expenditures. 2) A meeting is held between the department heads, Finance Director and the City Administrator for the purpose of reviewing and prioritizing the budget requests.
3) The City Administrator submits the proposed City Budget to the City Council, who makes decisions regarding department budgets.
4) The approved budget is placed in the City accounting system and monitored by the Finance Department as well as by the department heads.
5) Budgets are adopted on the modified accrual basis. Revenues are budgeted in the year receipt is expected, and expenditures are budgeted in the year that the applicable purchase orders are expected to be issued. The Debt Service Fund budget is prepared to provide funding for general obligation debt service when liabilities are due for payment. The level of control (level at which expenditures may not exceed budget) is at fund level for the General Fund, fund level for the Special Revenue Funds, and project level for the Capital Projects Funds.

B. Excess Expenditure over Appropriations
The City incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2023:

General Fund
Current:

Capital outlay $ 965,614
Community Development Block Grant Special Revenue Fund
Current:

Capital outlay $ 2,013
Impact Fees Special Revenue Fund
Current:

Public Safety $ 1,755
Highways and streets 8,796
Culture and recreation 288
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Required Supplementary Information (Unaudited) – Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability (Asset)Last 10 Years* 69 2015 2016 2017 2018 2019 2020 2021 2022 2023
Proportion of the net pension liability (asset) 0.1141% 0.1170% 0.1107% 0.1088% 0.1102% 0.0057% 0.0119% -0.0792% 0.0278%Proportionate share of the net pension liability (asset) $ 7,165,731 $ 8,032,145 $ 9,583,127 $ 10,793,945 $ 10,615,478 $ 579,267 $ 1,290,678 $ (4,281,392) $ 3,215,744 Covered payroll $ 3,644,535 $ 3,617,983 $ 3,411,501 $ 3,728,201 $ 3,960,212 $ 3,991,276 $ 4,313,602 $ 4,489,333 $ 4,742,624 Proportionate share of the net pension liability (asset) as a percentage of covered payroll 196.62% 222.01% 280.91% 289.52% 268.05% 14.51% 29.92% -95.37% 67.81%Plan fiduciary net position as a percentage of the total pension liability (asset) 78.02% 74.09% 70.07% 69.45% 70.84% 99.14% 97.37% 110.81% 93.14%Notes to Schedule:

Change in Benefit Terms - None
Change in Assumptions - None
*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.

CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Required Supplementary Information (Unaudited) – Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of ContributionsLast 10 Years
70 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarily required contribution (actuarially determined) $ 745,347 788,942 $ 848,864 $ 942,347 $ 1,034,227 $ 694,478 $ 523,962 $ 648,797 $ 678,921 $ 738,194 $ Contributions in relation to the actuarially determined contributions 745,347 788,942 848,864 942,347 1,034,227 11,304,271 523,962 648,797 678,921 738,194 Contribution deficiency (excess) $ - - $ - $ - $ - $ (10,609,793) $ - $ - $ - $ - $ Covered payroll 3,644,535 $ 3,617,983 $ 3,411,501 $ 3,728,201 $ 3,960,212 $ 3,991,276 $ 4,313,602 $ 4,892,282 $ 4,742,624 $ 5,092,237 $ Contributions as a percentage of covered payroll 21.65% 20.60% 24.88% 25.28% 26.12% 283.22% 12.15% 13.26% 14.32% 14.50% 71 SUPPLEMENTARY INFORMATION
CITY OF CHOWCHILLA | JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Balance Sheet
72 State Street & SAFER Fire Measure T
Gas Tax SB1 RSTP Road (LTF) Grant Fund Fund
ASSETS
Cash and investments $ 1,400,207 $ 841,702 $ 907,886 - $ $ 1,786,209 - $ Accounts receivable - - - 20,463 - 4,500
Intergovernmental receivables 40,719 75,453 683,909 1,318,123 430,517 - Notes receivable, net - - - - - -
Total assets 1,440,926 $ 917,155 $ 683,909 $ 2,246,472 $ - $ 2,221,226 $

LIABILITIES
Accounts payable 9,804 $ - $ - $ 165,238 $ - $ 4,500 $
Due to other funds - - 585,617 - 27,567 -
Total liabilities 9,804 - 585,617 165,238 27,567 4,500

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - 374,277 1,102,497 - 348,071
Total deferred inflows of resources - - 374,277 1,102,497 - 348,071

FUND BALANCES (DEFICIT)
Restricted for:

Highway and streets 1,431,122 917,155 978,737 - 1,868,655 - Community development - - - - - -
Unassigned - - (275,985) - (27,567) -
Total fund balances (deficit) 917,155 1,431,122 (275,985) 978,737 (27,567) 1,868,655 Total liabilities, deferred inflows
of resources, and fund balances $ 917,155 1,440,926 $ 683,909 $ 2,246,472 $ - $ 2,221,226 $ CITY OF CHOWCHILLA | JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Balance Sheet
(Continued)
73 Low and
Home Moderate
Maintenance Investment Income
Assessment Transit Partnership EDBG Housing
District System Program Grants Asset Fund Total
ASSETS
Cash and investments $ 679,987 $ 1,325,748 - $ $ 44,276 $ 6,986,015 - $ Accounts receivable - 4,500 - - - 29,463
Intergovernmental receivables 4,962 552,089 - - 3,105,772 - Notes receivable, net - - 1,447,962 - 68,850 1,516,812
Total assets 684,949 $ 556,589 $ 2,773,710 $ 44,276 $ 68,850 $ 11,638,062 $

LIABILITIES
Accounts payable $ 10,461 $ 7,537 $ 828 $ - $ 198,368 - $ Due to other funds 603,873 - - - 36,975 1,254,032
Total liabilities 611,410 10,461 828 - 36,975 1,452,400

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 498,967 - 1,447,962 - 68,850 3,840,624 Total deferred inflows of resources - 498,967 1,447,962 - 68,850 3,840,624

FUND BALANCES (DEFICIT)
Restricted for:

Highway and streets 674,488 - - - 5,870,157 -
Community development - 1,324,920 - 44,276 1,369,196 -
Unassigned (553,788) - - - (36,975) (894,315)
Total fund balances (deficit) (553,788) 674,488 1,324,920 44,276 (36,975) 6,345,038 Total liabilities, deferred inflows
of resources, and fund balances $ 556,589 684,949 $ 2,773,710 $ 44,276 $ 68,850 $ 11,638,062 $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 74 State Street & SAFER Fire Measure T
Gas Tax SB1 RSTP Road (LTF) Grant Fund Fund

REVENUES
Intergovernmental 465,989 $ 430,594 $ 407,924 $ 235,004 $ - $ 786,148 $ Use of money and property 30,188 28,024 - 16,316 - 40,303 Charges for services - - - - - -
Miscellaneous - - - 314 64 -
Total revenues 496,177 458,618 407,924 251,634 64 826,451

EXPENDITURES
Current:

General government - - - 2,938 - -
Public safety - - - - 13,287 -
Highway and streets 44,562 2,512 367,492 - - 35,781
Community development - - - - - -
Capital outlay - - - 259,986 - -
Total expenditures 44,562 2,512 - 630,416 13,287 35,781 Excess (deficiency) of revenues
over (under) expenditures 451,615 456,106 407,924 (378,782) (13,223) 790,670

OTHER FINANCING SOURCES (USES)
Transfers in - 14,502 288,682 - - -
Transfers out (42,564) (637,503) (683,909) (219,942) (365,420) - Gain (loss) on sale of capital assets - - - - - -
Total other financing sources (uses) (42,564) (623,001) (683,909) 68,740 - (365,420) Net change in fund balances 409,051 (166,895) (275,985) (310,042) (13,223) 425,250 1,084,050 1,022,071 - 1,288,779 (14,344) 1,443,405
$ 917,155 1,431,122 $ (275,985) $ 978,737 $ (27,567) $ 1,868,655 $ Fund balances (deficit) - beginning
Fund balances (deficit) - ending
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
75 Low and
Home Moderate
Maintenance Investment Income
Assessment Transit Partnership EDBG Housing
District System Program Grants Asset Fund Total

REVENUES
Intergovernmental $ 2,574 $ 262,658 $ - $ - $ 8,584 $ 2,599,475 Use of money and property 13,793 228 28,266 791 157,909 - Charges for services 310,498 25,827 - - 336,325 -
Miscellaneous 255 - - - - 633
Total revenues 326,865 288,968 28,266 791 8,584 3,094,342

EXPENDITURES
Current:

General government - 2,453 - - - 5,391
Public safety - - - - - 13,287
Highway and streets 277,548 502,107 - - - 1,230,002
Community development - - 9,072 1,380 - 10,452
Capital outlay 97,811 - - - - 357,797
Total expenditures 277,548 602,371 9,072 1,380 - 1,616,929 Excess (deficiency) of revenues
over (under) expenditures (313,403) 49,317 19,194 (589) 8,584 1,477,413

OTHER FINANCING SOURCES (USES)
Transfers in - 36,216 - 14,847 - 354,247
Transfers out - - (3,018) - - (1,952,356)
Gain (loss) on sale of capital assets 4,675 - - - (104,000) (99,325) Total other financing sources (uses) 40,891 - (3,018) 14,847 (104,000) (1,697,434) Net change in fund balances 49,317 (272,512) 16,176 14,258 (95,416) (220,021) (281,276) 625,171 1,308,744 30,018 58,441 6,565,059
Fund balances (deficit) - ending $ (553,788) 674,488 $ 1,324,920 $ 44,276 $ (36,975) $ 6,345,038 $ Fund balances (deficit) - beginning
CITY OF CHOWCHILLA | JUNE 30, 2023
Nonmajor Enterprise Funds
Combining Statement of Net Position
76 Storm
Drain Airport Total
ASSETS
Current assets:

Cash and investments 2,131,158 $ 186,000 $ 2,317,158 $
Accounts receivable, net 23,340 - 23,340
Intergovernmental receivables 30,615 174,842 205,457
Total current assets 2,329,340 216,615 2,545,955
Noncurrent assets:

Capital assets:

Nondepreciable 1,838,248 454,204 2,292,452
Depreciable, net of accumulated depreciation 330,121 205,305 535,426 Total noncurrent assets 2,043,553 784,325 2,827,878
Total assets 4,372,893 1,000,940 5,373,833

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year 3,615 1,520 5,135 Deferred outflows of resources from pensions 12,907 31,023 43,930 Total deferred outflows of resources 14,427 34,638 49,065

LIABILITIES
Current liabilities:

Accounts payable 10,086 195,814 205,900
Total current liabilities 10,086 195,814 205,900
Noncurrent liabilities:

Net pension liability 6,639 15,790 22,429
Total noncurrent liabilities 6,639 15,790 22,429
Total liabilities 16,725 211,604 228,329

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions 4,204 10,300 14,504 Total deferred outflows of resources 4,204 10,300 14,504

NET POSITION
Net investment in capital assets 2,043,553 784,325 2,827,878 Unrestricted 2,142,074 210,113 2,352,187
Total net position $ 994,438 4,185,627 $ 5,180,065 $
CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Net Position 77 Storm
Drain Airport Total
Operating revenues:

Charges for services 223,083 $ 18,889 $ 241,972 $
Miscellaneous 5,253 4,327 9,580
Total operating revenues 228,336 23,216 251,552
Operating expenses:

Personnel services 76,969 31,253 108,222
Materials, supplies and services 60,541 11,668 72,209
Depreciation 15,685 15,925 31,610
Total operating expenses 153,435 58,606 212,041
Operating income (loss) 74,901 (35,390) 39,511
Nonoperating revenues (expenses):

Use of money and property 4,737 3,436 8,173
Taxes 58,217 12,622 70,839
Grants - capital 195,783 291,549 487,332
Grants - operating 10,827 - 10,827
Total nonoperating revenues (expenses) 258,737 318,434 577,171 Income (loss) before transfers 333,638 283,044 616,682
Transfers in 3,420,332 3,420,332 -
Transfers out - (2,213,109) (2,213,109)
Change in net position 283,044 1,540,861 1,823,905
Net position - beginning 711,394 2,644,766 3,356,160
Net position - ending 4,185,627 $ 994,438 $ 5,180,065 $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
78 Storm
Drain Airport Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 232,198 $ 18,889 $ 251,087 $ Payments to suppliers (1,819) 135,119 133,300
Payments to employees (40,799) (17,135) (57,934)
Other operating revenues 4,327 5,253 9,580
331,771 4,262 336,033

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grants received - 10,827 10,827
Transfer from other funds 3,420,332 3,420,332 -
Transfer to other funds (2,213,109) (2,213,109) -
Taxes received 58,217 70,839 12,622
23,449 1,265,440 1,288,889
Grants received 20,941 273,811 294,752
Acquisition of capital assets (1,441,253) (240,613) (1,681,866) activities 33,198 (1,420,312) (1,387,114)

CASH FLOWS FROM INVESTING ACTIVITIES
3,436 4,737 8,173
3,436 4,737 8,173
64,345 181,636 245,981
121,655 1,949,522 2,071,177
$ 186,000 2,131,158 $ 2,317,158 $
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
Net cash provided by investing activities
Net cash provided by (used for) capital and related financing Interest received
Net increase (decrease) in cash and cash equivalents
Net cash provided by (used for) operating activities
Net cash provided by (used for) noncapital financing activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
(Continued)
79 Storm
Drain Airport Total
Operating income (loss) $ 74,901 $ (35,390) $ 39,511
Depreciation 15,925 15,685 31,610
(Increase) decrease in:

Accounts receivable 9,115 - 9,115
Deferred outflows of resources from pensions 10,130 2,851 12,981 Increase (decrease) in:

Accounts payable and other liabilities 195,660 9,849 205,509 Net pension liability 38,930 15,815 54,745
Deferred inflows of resources from pension (12,890) (4,548) (17,438) Net cash provided by (used for) operating activities $ 4,262 331,771 $ 336,033 $ Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

CITY OF CHOWCHILLA | JUNE 30, 2023
Internal Service Funds
Combining Statement of Net Position
80 Fleet Information Employee
Maintenance Technology Benefits Total
ASSETS
Current assets:

Cash and investments $ 11,818 $ 197,198 - $ $ 209,016
Accounts receivable, net 180 (116) - 64
Prepaid expenses 3,651 - (8,441) (4,790)
Total current assets 3,535 11,998 188,757 204,290
Noncurrent assets:

Capital assets:

Nondepreciable - 165,683 - 165,683
Depreciable, net of accumulated
depreciation/amortization 235,235 32,837 - 268,072
Total noncurrent assets 400,918 32,837 - 433,755
Total assets 404,453 44,835 188,757 638,045

DEFERRED OUTFLOWS OF RESOURCES
Contributions to pension plan in current fiscal year 13,802 19,553 - 33,355 Deferred outflows of resources from pensions 118,396 165,962 - 284,358 Total deferred outflows of resources 132,198 185,515 - 317,713

LIABILITIES
Current liabilities:

Accrued salaries, wages, and benefits 1,643 13,304 52,222 67,169 Accrued payroll - - 149,246 149,246
Due to other funds - 23,070 - 23,070
Compensated absences - 382,055 - 382,055
Subscription liability - current - 18,900 - 18,900
Current portion of lease liabilities - 15,880 - 15,880
Total current liabilities 55,274 17,523 583,523 656,320 Noncurrent liabilities:

Compensated absences - - 136,247 136,247
Net pension liability 85,407 60,287 - 145,694
Subscription liability - long-term - 19,845 - 19,845
Lease liabilities - 17,361 - 17,361
Total noncurrent liabilities 105,252 77,648 136,247 319,147 Total liabilities 160,526 95,171 719,770 975,467

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources from pensions 54,509 39,552 - 94,061 Total deferred inflows of resources 54,509 39,552 - 94,061

NET POSITION (DEFICIT)
Net investment in capital assets 16,957 400,918 417,875 - Unrestricted (deficit) (25,985) 25,353 (531,013) (531,645) Total net position (deficit) $ 374,933 42,310 $ (531,013) $ (113,770) $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position 81 Fleet Information Employee
Maintenance Technology Benefits Total
Operating revenues:

Charges for services $ 811,402 267,618 $ - $ 1,079,020 $ Miscellaneous 67 264 - 331
Total operating revenues 267,685 811,666 - 1,079,351
Operating expenses:

Personnel services 270,743 405,903 46,685 723,331
Materials, supplies and services 97,725 338,996 436,721 - Depreciation and amortization 42,088 10,559 - 52,647
Total operating expenses 379,027 786,987 46,685 1,212,699 Operating income (loss) 24,679 (111,342) (46,685) (133,348) Nonoperating revenues (expenses):

Gain (loss) sale of assets 3 - - 3
Interest expense - (3,197) - (3,197)
Total nonoperating revenues (expenses) - (3,194) - (3,194) Change in net position (114,536) 24,679 (46,685) (136,542) Net position (deficit) - beginning 350,254 156,846 (484,328) 22,772 Net position (deficit) - ending $ 374,933 42,310 $ (531,013) $ (113,770) $ CITY OF CHOWCHILLA | FOR THE YEAR ENDED JUNE 30, 2023
Internal Service Funds
Combining Statement of Cash Flows
82 Fleet Information Employee
Maintenance Technology Benefits Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 267,618 $ 811,338 $ - $ 1,078,956 $ Payments to suppliers (97,506) (496,578) - (594,084)
Payments to or received from employees (137,338) (232,905) 135,663 (234,580) Other operating revenues 67 264 - 331
82,119 32,841 135,663 250,623

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Loan from other funds 23,070 - - 23,070
activities - 23,070 - 23,070

ACTIVITIES
Leases paid (18,000) - - (18,000)
Acquisition of capital assets (14,177) (183,683) - (197,860) Proceeds from the sale of assets - 3 - 3
(32,174) (183,683) - (215,857)
Net increase (decrease) in cash and cash equivalents 667 (78,494) 135,663 57,836 78,494 11,151 61,535 151,180
$ - 11,818 $ 197,198 $ 209,016 $
Net cash provided by (used for) operating activities
Net cash provided by (used for) noncapital financing

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
Net cash provided by (used for) related financing activities Operating income (loss) $ (111,342) $ 24,679 $ (46,685) $ (133,348) Depreciation 10,559 42,088 - 52,647
(Increase) decrease in:

Accounts receivable - (64) - (64)
Prepaid expenses - (202) 104,135 103,933
Net pension asset 146,679 199,538 346,217 -
Deferred outflows of resources from pensions 34,165 21,566 - 55,731 Increase (decrease) in:

Accounts payable and other liabilities 219 (157,380) 31,527 (125,634) Compensated absences - - 46,686 46,686
Deferred inflows of resources from pensions (47,439) (48,106) - (95,545) Net cash provided by (used for) operating activities 32,841 $ 82,119 $ 135,663 $ 250,623 $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

CITY OF CHOWCHILLA | JUNE 30, 2023
Custodial Funds
Combining Statement of Fiduciary Net Position
83 Community
Facilities District
Greenhills
Assessment
District
Pheasant Run
Assessment
District
Total Custodial
Funds
ASSETS
Cash and investments (in City investment pool) $ 774,736 $ 705,539 $ 585,941 $ 2,066,216 Restricted cash with fiscal agents 581,749 80,599 119,842 782,190 Accounts receivable (net) 5,318 902 14,335 20,555
Total assets 791,456 1,357,387 720,118 2,868,961

LIABILITIES
Accounts payable 152 2,558 292 3,002
Total liabilities 152 2,558 292 3,002

NET POSITION
Restricted for:

Individuals, organizations, and other governments 791,304 1,354,829 719,826 2,865,959 Total net position 1,354,829 $ 791,304 $ 719,826 $ 2,865,959 $ CITY OF CHOWCHILLA | JUNE 30, 2023
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position 84 Community
Facilities
District
Greenhills
Assessment
District
Pheasant Run
Assessment
District
Total Custodial
Funds

ADDITIONS
Property tax collections $ 588,340 578,313 $ 391,920 $ 1,558,573 $ Investment earnings 12,928 31,278 13,352 57,558
Total additions 601,268 609,591 405,272 1,616,131

DEDUCTIONS
Payments to bondholders $ 527,014 558,360 $ 379,914 $ 1,465,288 $ Administrative expenses 19,982 40,211 17,994 78,187
Total deductions 546,996 598,571 397,908 1,543,475
Change in fiduciary net position 54,272 11,020 7,364 72,656 Net position - beginning 737,032 1,343,809 712,462 2,793,303 Net position - ending $ 791,304 1,354,829 $ 719,826 $ 2,865,959 $ March 29, 2024
To the Honorable Mayor and City Council
City of Chowchilla, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chowchilla, California (the City) for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated March 29, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 7 to the financial statements, the City adopted Statement of Governmental Accounting Standards (GASB Statement) No. 96, SubscriptionBased Information Technology Arrangements, in fiscal year 2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the basic financial statements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimate of the allowance for doubtful accounts is based on historical revenues and analysis of the collectability of individual accounts. We evaluated the methods, assumptions, and data used to develop the allowance for doubtful accounts estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the City-Wide Cost Allocation Plan, as approved in the annual budget, is based on past history, planned future activity, and other factors significant to the City’s operations that are required to support each operating department. We evaluated the methodology used by management to create this estimate and believe that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosure affecting the financial statements was:

The disclosure of the City’s defined benefit pension plan in Note 11 to the financial statements provides detailed information on the pension plan including a description of the plan, benefits provided, contributions, calculation of the net pension liability/asset and related deferrals, actuarial assumptions, and discount rate used to measure the net pension liability/asset.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule “Uncorrected Audit Adjustments” summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. In addition, the adjustments noted in the “Corrected Material Audit Adjustments” attachment represent the material misstatements detected and corrected as a result of our audit.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

In our audit engagement letter previously provided to you, we communicated the following significant risks of material misstatement (significant risks) as part of our audit planning:
• Management override of controls
• Improper revenue recognition due to fraud
During the course of the audit, we identified additional significant risks:
• Implementation of GASB 96, Subscription Based Information Technology Arrangements, is incomplete, inaccurate, or otherwise improperly implemented.
• Transfers from restricted funds are not ultimately used for the purpose of the original restriction.

These risks were addressed within our audit procedures and any findings related to these risks have been noted in our report dated March 29, 2024.

Other Matters
We applied certain limited procedures to the management’s discussion and analysis, budgetary comparison schedules, proportionate share of net pension liability, and schedule of contributions, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining nonmajor fund financial statements and the related budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City of Chowchilla, California, and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Client: CHOWCHILLA, CITY OF
Engagement: 6-30-23 Audit
Current Period: 06/30/2023
Workpaper: Attachment: Uncorrected Audit Adjustments
Account Description Misstatement Workpaper Reference Debit Credit Net Income
Effect
PJE01 Projected Misstatement L405
To post estimated lease liability for farm lease per GASB 87. 100-0100-0219 Lease Receivable 27,230.13 0.00
100-0200-0482 Unavailable Lease Revenue 0.00 27,230.13
Total 27,230.13 27,230.13 0.00
PJE02 Known Classification C120
Proposed entry to correct A/R unapplied and its effects on cash and unearned revenue. 100-0100-1900 Claim On Cash 43,582.73 0.00
100-xxxx-xxxx Unearned Revenue 0.00 43,582.73
Total 43,582.73 43,582.73 0.00

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Chowchilla City CouncilApril 9, 2024

Chowchilla City Council
April 9, 2024