Clovis City Council
December 19, 2022

December 19, 2022 - 1 - 2:42 PM A G E N D A • C I T Y C O U N C I L M E E T I N G

December 19, 2022 6:00 PM Council Chamber

In compliance with the Americans with Disabilities Act, if you need special assistance to access the City Council Chamber to participate at this meeting, please contact the City Clerk or General Services Director at (559) 324 -2060 (TTY – 711). Notificatio n 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the Council Chamber.

The Clovis City Council meetings are open to the public at the physical address listed above. There are numerous ways to participate in the City Council meetings: you are able to attend in person; you may submit written comments as described below; you may participate by calling in by phone (see “Verbal Comments” below); and you may view the meeting which is webcast and acces sed at www.cityofclovis.com/agendas.

Written Comments

 Members of the public are encouraged to submit written comments at:
www.cityofclovis.com/agendas at least two (2) hours before the meeting (4:00 p.m.). You will be prompted to provide:

 Council Meeting Date
 Item Number
 Name
 Email
 Comment

 Please submit a separate form for each item you are commenting on.

 A copy of your written comment will be provided to the City Council noting the item number.

If you wish to make a verbal comment, please see instructions below.

 Please be aware that any written comments received that do not specify a particular agenda item will be marked for the general public comment portion of the agenda.

 If a written comment is received after 4:00 p.m. on the day of the meeting, efforts will be made to provide the comment to the City Council during the meeting. However, staff cannot guarantee that written comments received after 4:00 p.m. will be provided to City Council during the meeting. All written comments received prior to the end of the meeting will be made part of the record of proceedings.

Council Chamber, 1033 Fifth Street, Clovis, CA 93612 (559) 324-2060 www.cityofclovis.com
1 December 19, 2022 - 2 - 2:42 PM Verbal Comments

 If you wish to speak to the Council on an item by telephone, you should contact the City Clerk at (559) 324-2060 no later than 4:00 p.m. the day of the meeting.

 You will be asked to provide your name, phone number, and your email. You will be emailed instructions to log into Webex to participate in the meeting. Staff recommends participants log into the Webex at 5:30 p.m. the day of the meeting to perform an audio check.

 All callers will be placed on mute, and at the appropriate time for your comment your microphone will be unmuted.

 In order for everyone to be heard, please limit your commen ts to 5 minutes or less, or 10 minutes per topic

Webex Participation

 Reasonable efforts will be made to allow written and verbal comment from a participant communicating with the host of the virtual meeting. To do so, a participant will need to chat with the host and request to make a written or verbal comment. The host w ill make reasonable efforts to make written and verbal comments available to the City Council. Due to the new untested format of these meetings, the City cannot guarantee that these written and verbal comments initiated via chat will occur. Participants desiring to make a verbal comment via chat will need to ensure that they accessed the meeting with audio transmission capabilities.

CALL TO ORDER

FLAG SALUTE - Councilmember Mouanoutoua

ROLL CALL

PUBLIC COMMENTS - This is an opportunity for the members of the public to address the City Council on any matter within the City Council’s jurisdiction that is not listed on the Agenda. In order for everyone to be heard, please limit your comments to 5 minutes or less, or 10 minutes per topic. Anyone wishing to be placed on the Agenda for a specific topic should contact the City Manager’s office and submit correspondence at least 10 days before the desired date of appearance.

ORDINANCES AND RESOLUTIONS - With respect to the approval of resolutions and ordinances, the reading of the title shall be deemed a motion to waive a reading of the complete resolution or ordinance and unless there is a request by a Councilmember that the resolution or ordinance be read in full, furth er reading of the resolution or ordinance shall be deemed waived by unanimous consent of the Council.

CONSENT CALENDAR - Items considered routine in nature are to be placed upon the Consent Calendar. They will all be considered and voted upon in one vote as one item unless a Councilmember requests individual consideration. A Councilmember’s vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Motions in favor of adoption of the C onsent Calendar are deemed to include a motion to waive the reading of any ordinance or resolution on the Consent Calendar. For adoption of 2 December 19, 2022 - 3 - 2:42 PM ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

1. Administration - Approval - Minutes from the December 12, 2022, Council Meeting.

2. Finance – Receive and File – Investment Report for the Month of August 2022.

3. Finance – Receive and File – Treasurer’s Report for the Month of August 2022.

4. General Services – Approval - Res. 22 -___, Authorizing Amendments to the City’s Classification and Compensation Plans to Adopt a Communications and Marketing Analyst with a Salary Range of $7,711 - $9,373 per month; and Approval – Res. 22- ___, Amending the City’s FY 2022 -23 Position Allocation Plan by deleting one (1) Public Affairs and Information Manager and adding one (1) Communications and Marketing Analyst.

5. General Services – Approval – Res. 22 -___, Amending the City’s FY 2022 -2023 Position Allocation Plan by deleting one (1) Principal Office Assistant and adding one (1) Administrative Assistant position within the Police Department.

6. Planning and Development Services – Approval – Final Acceptance for Final Map for Tract 6221, located at the northwest corner of Ashlan Avenue and Locan Avenue (Wilson Premier Homes, Inc.) (Councilmember Mouanoutoua has a conflict of interest on this item)

PUBLIC HEARINGS - A public hearing is an open consideration within a regular or special meeting of the City Council, for which special notice has been given and may be required. When a public hearing is continued, noticing of the adjourned item is required as per Government Code 54955.1.

7. Consider Approval - Res. 22-___, CUP2022-005 Appeal. Consideration of a resolution denying a request by George Beal to overturn the Planning Commission’s approval of CUP2022-005, which allows a 24 -hour convenience store and the sale of liquor and alcoholic beverages for off -site consumption on property located on the northeast corner of N. Temperance Avenue & Owens Mountain Parkway. Dave Virk, LLC, owner/applicant; Bottom Line Group L LC – Seth Ramirez, owner's representative; George Beal – Beal Developments LLC; applicant of appeal.

Staff: Marissa Jensen, Assistant Planner
Recommendation: Deny appeal and approve project

8. Consider Approval – Res. 22 -___, AC2022 -001, A resolution of the City of Clovis making findings and a determination to authorize a Certificate of Tentative Cancelation for Land Conservation Contract No. 6273, for property located near the southeast corner of Shaw and De Wolf Avenues. Precision Civil Engineering, Inc., applicant; Frank and Georgia W. Sorrenti, property owners.

Staff: George González, Senior Planner
Recommendation: Approve

3 December 19, 2022 - 4 - 2:42 PM ADMINISTRATIVE ITEMS - Administrative Items are matters on the regular City Council Agenda other than Public Hearings.

9. Receive and File - Finance Department Update.

Staff: Jay Schengel, Finance Director
Recommendation: Receive and File

10. Consider Approval - Res 22 -___, Final Amendments to the 2021 -22 Budget in conformance with the Budget Ordinance; and Receive and File – Year-end report for all funds as of June 30, 2022.

Staff: Jay Schengel, Finance Director
Recommendation: Approve and Receive and File

11. Consider Approval - 2021-22 Annual Comprehensive Financial Report.

Staff: Jay Schengel, Finance Director
Recommendation: Approve

12. Consider Approval - Modifications to the 10-day public notice procedures for land use and planning projects from Planning and Development Services.

Staff: Dave Merchen, City Planner
Recommendation: Approve

COUNCIL ITEMS

13. Consider Approval – Various City Council Committee Appointments.

Staff: John Holt, City Manager
Recommendation: Approve

14. Consider Approval – 2023 Annual Schedule for City Council Meetings and Cancellation of the January 3, 2023, City Council Meeting.

Staff: John Holt, City Manager
Recommendation: Approve

CITY MANAGER COMMENTS

COUNCIL COMMENTS

4 December 19, 2022 - 5 - 2:42 PM CLOSED SESSION - A “closed door” (not public) City Council meeting, allowed by State law, for consideration of pending legal matters and certain matters related to personnel and real estate transactions.

15. Government Code Section 54956.9(d)(2)

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant Exposure to Litigation
Three potential cases based on claims received for the Sunnyside Avenue water main break and property flooding incident on January 3, 2022.

ADJOURNMENT

MEETINGS AND KEY ISSUES

Regular City Council Meetings are held at 6:00 P.M. in the Council Chamber. The following are future meeting dates:

Jan. 3, 2023 (Tue.) To be Cancelled
Jan. 9, 2023 (Mon.)
Jan. 17, 2023 (Tue.)

5 PRELIMINARY - SUBJECT TO APPROVAL

CLOVIS CITY COUNCIL MEETING

December 12, 2022 6:01 P.M. Council Chamber

Meeting called to order by Mayor Flores at 6:01
Flag Salute led by Councilmember Bessinger

Roll Call: Present: Councilmembers Ashbeck, Bessinger, Mouanoutoua, Whalen Mayor Flores

CONSENT CALENDAR – 6:01

Motion by Councilme mber Ashbeck, seconded by Councilmember Bessinger, that the items on the Consent Calendar be approved. Motion carried by unanimous vote.

1. Administration - Approved - Minutes from the December 5, 2022, Council Meeting.

2. Finance – Received and Filed – Status Report of Community Facilities District Revenues and Expenditures.

3. Planning and Development Services – Approved – Res. 22 -145, Final Map Tract 6208, located in the northwest area of Highland and Dakota Avenues. (KB Home South Bay Inc.).

4. Planning and Development Services – Approved – Res. 22-146, Annexation of Proposed Tract 6208, located in the northwest area of Highland and Dakota Avenues, to the Landscape Maintenance District No. 1 of the City of Clovis. (KB Home South Bay Inc.).

5. Planning and Development Services - Approved – Final Acceptance for CIP 20-10, Barstow Avenue Street Improvements.

COUNCIL ITEMS – 6:03

6:03 – ITEM 6 - APPROVED VARIOUS ACTIONS REL ATED TO THE NOVEMBER 8, 2022,

CONSOLIDATED STATEWI DE GENERAL ELECTION FOR CLOVIS CITY COUN CIL AND MEASURE B (TRANSIENT OCCUPANCY TAX).

6A. APPROVED – RES. 22-147, DECLARING THE RESU LTS OF THE NOVEMBER 8, 2022, CONSOLIDATED S TATEWIDE GENERAL ELECTION FOR CLOVIS CITY COUNCIL AND MEASURE B.

Motion for approval by Councilmember Whalen, seconded by Councilmember Mouanoutoua. Motion carried by unanimous vote.

6B. OATH OF OFFICE: COUNCILMEMBERS BASGALL, BESSINGER, AND PEARCE.

RECESS FOR PHOTOS AND REFRESHMENTS – 6:08

6 AGENDA ITEM NO. 1.

PRELIMINARY - SUBJECT TO APPROVAL

COUNCIL ITEMS – 6:26

6:26 – ITEM 7 – APPROVED VARIOUS ACTIONS RELA TED TO THE CITY COUN CIL REORGANIZATION:

7A. ELECTION OF MAYOR BY CITY COUNCIL – MAYOR PRO TEM ASHBECK Motion for approval appoint Mayor Pro Tem Ashbeck as Mayor by Councilmember Bessinger, seconded by Councilmember Mouanoutoua. Motion carried by unanimous vote.

7B. ELECTION OF MAYOR PRO TEM BY CITY COUNCIL - MAYOR
Motion for approval appoint Councilmember Mouanoutoua as Mayor Pro Tem by Councilmember Bess inger, seconded by Councilmember Pearce. Motion carried by unanimous vote.

7C. PRESENTATION OF GAVEL TO OUTGOING MAYOR FLORES – MAYOR

7D. COUNCIL COMMENTS / INTRODUCTIONS BY MAYOR AND COUNCILMEMBERS

PUBLIC COMMENTS – 6:47

Mayor Flores adjourned the meeting of the Council to December 19, 2022

Meeting adjourned: 6:54 p.m.

______________________________ ________________________________ Mayor City Clerk
7 AGENDA ITEM NO. 1.

TO: Mayor and City Council
FROM: Finance Department
DATE: December 19, 2022
SUBJECT: Finance – Receive and File – Investment Report for the Month of August 2022.

ATTACHMENTS: 1. Distribution of Investments

2. Monthly Investment Transactions

3. Certificates of Deposit

4. Municipal Securities

5. Graph of August 31, 2022 Treasury Rates

Attached is the Investment Report for the month of August 2022. Shown in Attachment 1 is the distribution of investments which lists all the individual securities owned by the City with the book and market values. Book value is the actual price paid for the investment. Market value is the amount that the investment is worth if sold in the open market. The market value (which fluctuates daily) that is used in the report is as of the last working day of the month.

Attachment 2 reflects the monthly investment transactions for the month of August 2022.

Attachment 3 li sts the certificates of deposit. Attachment 4 lists the municipal securities.

Attachment 5 is a graph of Treasury rates on August 31, 2022.

The investment of the City’s funds is performed in accordance with the adopted Investment Policy. Funds are invested with the following objectives in mind:

1. Assets are invested in adherence with the safeguards and diversity of a prudent investor.

2. The portfolio is invested in a manner consistent with the primary emphasis on preservation of the principal, while attaining a high rate of return c onsistent with this guideline. Trading of securities for the sole purpose of realizing trading profits is prohibited.

3. Sufficient liquidity is maintained to provide a source for anticipated financial obligations as they become due.

8 AGENDA ITEM NO. 2.

4. Investments may be made, consistent with the Investment Policy Guidelines, in fixed income securities maturing in three years or less and can be extended to five years with the City Manager’s approval.

The Finance Department invests the City’s assets with an expectation of achieving a total rate of return at a level that exceeds the annualized rate of return on short -term government guaranteed or insured obligations (90 -day Treasury bills) and to assure that the principal is preserved with minimal risk of depreciation or loss. In periods of rising interest rates, the City of Clovis portfolio return may be less than that of the annualized 90 -day Treasury bill. In periods of decreasing interest rates, the City of Clovis portfolio return may be greater than the annualized 90-day Treasury bill. The current 90-day Treasury bill rate (annualized) is 0.62%.

The rate of return for the City of Clovis portfolio is 1.54%. The goal for the City of Clovis investment return is 120% of the 90-day Treasury bill rate. The current rate of return is 248% of the Treasury bill rate.

In accordance with the Investment Policy, the investment period on each investment does not exceed three years and can be extended to five years with the City Manager’s approval. As of August 2022, the average investment life of the City’s investment portfolio is 1.48 years.

Current Investment Environment and Philosophy
During the month of August 2022, the federal funds rate remained at 2.25%-2.50%. On August 31, 2022, the Treasury yield curve increased from 3-month to 3-year notes, then decreased to 10-year notes.

Certificates of Deposit (CD’s)
The City purchases both negotiable and non -negotiable Certificates of Deposit (CD’s).

Although negotiable CD’s can be traded, it i s the City’s policy to buy and hold all CD’s.

Negotiable CD’s are held by U.S. Bank, a third party custodian. Non-negotiable CD’s are held in the City’s safe.

Purchases and Maturities
 3 government securities totaling $15,000,000 were purchased.  1 government security totaling $3,000,000 matured.
 6 certificates of deposit totaling $1,500,000 were purchased.  3 certificates of deposit totaling $750,000 matured.
 4 municipal securities totaling $7,250,000 were purchased.

Market Environment
 During August the federal funds rate remained at 2.25%-2.50%.  On August 31, the yield curve increased from 3-month to 3-year notes, then decreased to 10-year notes. See Attachment 5, Graph of Treasury Rates on August 31, 2022.

Prepared by: Jeffrey Blanks, Deputy Finance Director

Reviewed by: City Manager AH

9 AGENDA ITEM NO. 2.

STATED

DAYS TO

MATURITY

NET BOOK MARKET YIELD TO INTEREST INVEST MATURIT Y FROM COST VALUE VALUE * MATURIT Y RATE DATE DATE 8/31/2022

GOV'T SECURITIES
FHLB 6,065,100 6,021,482 5,999,220 2.000% 2.000% 10/31/19 09/09/22 9 FFCB 2,984,460 2,994,423 2,994,840 1.375% 1.375% 11/27/19 10/11/22 41 FFCB 5,008,500 5,003,235 4,992,750 1.600% 1.600% 01/23/20 10/13/22 43 FHLB 8,045,600 8,018,286 6,480,305 1.875% 1.875% 12/19/19 12/09/22 100 FHLB 5,047,500 5,019,684 6,480,305 1.875% 1.875% 01/23/20 12/09/22 100 FAMCMTN 8,544,965 8,521,148 8,422,055 1.350% 1.350% 02/27/20 02/27/23 180 FHLB 5,255,000 5,128,598 4,981,479 2.125% 2.125% 03/26/20 03/10/23 191 FHLB 13,579,800 13,282,915 12,901,881 2.125% 2.125% 04/30/20 03/10/23 191 FFCB 5,000,000 5,000,000 4,744,750 0.250% 0.250% 03/01/21 03/01/24 548 FHLB 4,998,000 4,998,000 4,972,150 3.250% 3.250% 08/17/22 03/08/24 555 FFCB 1,999,000 1,999,174 1,907,960 0.300% 0.300% 03/24/21 03/18/24 565 FHLB 5,000,000 5,000,000 4,707,800 0.350% 0.350% 06/07/21 06/07/24 646 FHLB 4,969,000 4,972,423 4,712,900 1.050% 1.050% 01/20/22 11/15/24 807 FHLB 3,980,000 3,982,075 3,813,240 1.750% 1.750% 02/28/22 02/28/25 912 FHLB 4,000,000 4,000,000 3,911,320 2.750% 2.750% 04/25/22 04/25/25 968 FAMCMTN 3,947,600 3,953,028 3,702,800 0.750% 0.750% 12/16/21 07/28/25 1,062 FHLB 5,000,000 5,000,000 4,983,450 3.600% 3.600% 08/30/22 08/28/25 1,093 FAMCMTN 4,948,500 4,953,442 4,586,800 0.600% 0.600% 10/14/21 09/08/25 1,104 FHLB 4,963,000 4,966,655 4,486,400 0.580% 0.580% 09/08/21 02/11/26 1,260 FHLB 3,922,000 3,928,967 3,607,280 0.750% 0.750% 12/16/21 02/24/26 1,273 FFCB 4,967,500 4,969,955 4,467,100 0.940% 0.940% 10/14/21 09/28/26 1,489 FHLB 3,649,200 3,649,200 3,602,960 1.150% 1.150% 06/29/22 10/28/26 1,519 FHLB 5,988,000 5,988,899 5,417,580 1.250% 1.250% 11/24/21 11/24/26 1,546 FHLB 5,127,757 5,119,620 4,743,400 2.125% 2.125% 01/20/22 12/11/26 1,563 FHLB 4,043,250 4,043,250 4,253,340 1.020% 1.020% 06/29/22 02/24/27 1,638 FHLB 4,550,000 4,550,000 4,253,340 1.020% 1.020% 08/17/22 02/24/27 1,638 FHLB 3,695,200 3,714,537 3,554,240 0.900% 0.900% 03/31/22 02/26/27 1,640 FHLB 4,000,000 4,000,000 3,752,120 2.375% 2.375% 03/08/22 03/08/27 1,650 SECURITIES TOTAL 143,278,932$ 142,778,996 $ $137,433,765 LAIF 74,651,233$ 74,651,233 $
Municipal Issuance 35,755,000$ 33,346,444 $
Sweep Account (Union Bank) 33,471,209$ 33,471,209 $ TOTAL CD'S 13,995,000$ 13,709,007 $
TOTAL INVESTMENTS 300,651,438$ 292,611,658 $
* Market values for securities obtained from US Bank.

City of Clovis
Distribution of Investments
As of August 31, 2022
ATTACHMENT 1
10 AGENDA ITEM NO. 2.

Activity Maturity
Institution Description Activity Amount Market Value Rate Date Date FHLB Gov. Sec. Purchase 5,000,000 4,998,000 3.250% 08/17/22 03/08/24 FHLB Gov. Sec. Purchase 5,000,000 5,000,000 3.600% 08/30/22 08/28/25 FHLB Gov. Sec. Purchase 5,000,000 4,550,000 1.020% 08/17/22 02/24/27 SAN DIEGO CA CONVENTION Mun Iss. Purchase 1,450,000 1,450,000 1.527% 08/18/22 04/15/24 SAND DIEGO CA PUB FACS Mun Iss. Purchase 1,625,000 1,625,000 1.812% 08/18/22 10/15/26 EL DORADO CA Mun Iss. Purchase 1,175,000 1,175,000 1.687% 08/18/22 03/01/27 SADDLEBACK VY UNI Mun Iss. Purchase 3, 000,000 3,000, 000 2.400% 08/1 0/22 08/01/27 MOUNTAIN AMER FED CD Purchase 250,000 250,000 3.450% 08/31/22 02/28/25 GENERATION BK CD Purchase 250,000 250,000 3.400% 08/03/22 08/04/25 DIRECT FED CREDIT CD Purchase 250,000 250,000 3.500% 08/17/22 08/18/25 RESOURCE ONE CD Purchase 250,000 250,000 3.300% 08/17/22 08/18/25 CONNEX CREDIT CD Purchase 250,000 250,000 3.500% 08/31/22 08/29/25 SKYONE FED CREDIT CD Purchase 250,000 250,000 3.600% 08/30/22 09/02/25 FFCB Gov. Sec. Maturity 3,000,000 3,001,715 1.625% 08/22/22 08/22/22 CAPITAL ONE BANK CD Maturity 250,000 250,000 2.150% 08/08/22 08/08/22 ENERBANK USA CD Maturity 250,000 250,000 2.050% 08/08/22 08/08/22 RAYMOND JAMES CD Maturity 250,000 250,000 1.900% 08/23/22 08/23/22

PORTFOLIO DATA
Current Month (08/22)
Book Market
CD'S 13,995,000 $ 13,709,007 $
Gov't Securities* 142,778,996 137,433,765
Municipal Securities 35,755,000 33,346,444
LAIF 74,651,233 74,651,233
Sweep Account (Union Bank) 33,471,209 33,471,209
TOTAL 300,651,438 $ 292,611,658 $
Prior Month (07/22)
Three Months Previous (05/22)
Book Market Book Market
CD'S 13,245,000 $ 12,948,633 $ CD'S $11,995,000 $11,776,587 Gov't Securities* 131,232,711 127,512,945 Gov't Securities* 135,597,608 132,028,260 Municipal Securities 28,505,000 26,994,880 Municipal Securities 21,435,000 20,246,488 LAIF 74,651,233 74,651,233 LAIF 74,511,731 74,511,731
Sweep Account (Union Bank) 51,872,996 51,872,996 Sweep Account (Union Bank) 53,520,514 53,520,514 TOTAL 299,506,940 $ 293,980,687 $ TOTAL 297,059,853 $ 292,083,580 $ Six Months Previous (02/22)
One Year Previous (08/21)
Book Market Book Market
CD'S $9,995,000 $9,946,255 CD'S $9,985,000 $10,105,425
Gov't Securities* 141,928,058 140,552,056 Gov't Securities* 113,200,490 114,200,064 Municipal Securities 9,465,000 9,278,989 M unicipal Securities 5,900,000 5,904,479 LAIF 74,453,060 74,453,060 LAIF 74,364,940 74,364,940
Sweep Account (Union Bank) 43,416,255 43,416,255 Sweep Account (Union Bank) 51,435,559 51,435,559 TOTAL 279,257,373 $ 277,646,615 $ TOTAL 254,885,989 $ 256,010,467 $ *Adjusted Quarterly for Premium/Discount Amortization
As of August 31, 2022
Monthly Investment Transactions
City of Clovis
ATTACHMENT 2
11 AGENDA ITEM NO. 2.

MARKET INTEREST INVEST MATURITY MATURITY FROM INTEREST
Negotiable CDs COST PRICE RATE DATE DATE 08/31/22 FREQUENCY Ally Bank 250,000 249,965.00 1.850% 09/19/19 09/19/22 19 QUARTERLY Usalliance Federal Credit Union 250,000 249,970.00 2.850% 09/30/19 09/30/22 30 QUARTERLY Morgan Stanley Bank 250,000 249,867.50 2.100% 10/17/19 10/17/22 47 MONTHLY Lafayette Fed Cr Un 250,000 249,565. 00 1.700% 11/22/19 11/22/22 83 MONTHLY Live Oak Banking Co. 250,000 249,432. 50 1.750% 12/11/19 12/12/22 103 QUARTERLY Wells Fargo Natl Bk West 250,000 249,460.00 1.800% 12/13/19 12/13/22 104 QUARTERLY Valley Cent Svgs Bk 250,000 249,057.50 1.700% 01/15/20 01/17/23 139 QUARTERLY Sallie Mae Bank 250,000 249,177.50 1.900% 01/23/20 01/23/23 145 QUARTERLY Servisfirst Bank 250,000 248,547.50 1.600% 02/21/20 02/21/23 174 MONTHLY Celtic Bank 250,000 248,240.00 1. 550% 03/13/20 03/13/23 194 MONTHLY Axos Bank 250,000 248,087.50 1.550% 03/26/20 03/27/23 208 MONTHLY Nicolet Natl Bank 250,000 247,375.00 0.900% 03/27/20 03/27/23 208 MONTHLY Centerstate Bank 250,000 247,130.00 0.900% 03/30/20 03/30/23 211 MONTHLY Bank Leumi 250,000 247,917.50 1.450% 03/31/20 03/31/23 212 MONTHLY Discover Bank 250,000 247,882.50 1. 350% 04/02/20 04/03/23 215 MONTHLY Berkshire Bank 250,000 247,605.00 1. 300% 04/08/20 04/06/23 218 MONTHLY American Express 250,000 247,115.00 1.100% 04/21/20 04/21/23 233 MONTHLY New York Cmnty Bank 250,000 241,055.00 0.350% 12/11/20 12/11/23 467 QUARTERLY Transportation Alliance Bk 250,000 238,695. 00 0.250% 03/12/21 03/12/24 559 QUARTERLY Preferred Bank 250,000 238,402.50 0. 250% 03/25/21 03/25/24 572 QUARTERLY Bankunited Natl Assn 245,000 234,256.75 0.450% 03/31/21 04/01/24 579 QUARTERLY Greenstate Credit Union 250,000 237,410. 00 0.450% 06/16/21 06/17/24 656 QUARTERLY Eaglemark Savings Bank 250,000 236,960. 00 0.400% 06/30/21 06/28/24 667 QUARTERLY Texas Exchange Bk 250,000 237,157.50 0. 500% 07/09/21 07/09/24 678 QUARTERLY BMW Bk North Amer 250,000 236,987.50 0.550% 07/30/21 07/30/24 699 QUARTERLY Toyota Finl Svgs 250,000 236,695.00 0.650% 09/09/21 09/09/24 740 QUARTERLY State Bk India 250,000 236,547.50 0. 650% 09/17/21 09/17/24 748 QUARTERLY Ubs Bank Usa 250,000 235,862.50 0. 750% 11/17/21 11/18/24 810 QUARTERLY Webbank Salt Lake City 250,000 235,742.50 0.750% 11/29/21 11/29/24 821 QUARTERLY Medallion Bank Salt Lake City 250,000 236, 120.00 0.900% 12/20/21 12/20/24 842 QUARTERLY Beal Bank 250,000 235,980.00 0.950% 01/19/22 01/15/25 868 QUARTERLY Mountian Amer Fed 250,000 250,190.00 3.450% 08/31/22 02/28/25 912 QUARTERLY Barclays Bk 250,000 239,672.50 1.700% 03/09/22 03/10/25 922 QUARTERLY Goldman Sachs Bk 250,000 239,372.50 1. 650% 03/09/22 03/10/25 922 QUARTERLY Safra National Bk 250,000 241,340.00 2. 000% 03/23/22 03/24/25 936 QUARTERLY Pentagon Federal Cr Un 250,000 241,237.50 2.000% 03/28/22 03/28/25 940 QUARTERLY Beal Bank 250,000 242,465.00 2.200% 04/06/22 04/02/25 945 QUARTERLY JP Morgan Chase 250,000 244,290.00 2. 500% 04/08/22 04/08/25 951 QUARTERLY First Natl Bank 250,000 242,355.00 2. 200% 04/12/22 04/11/25 954 QUARTERLY One Community Bank 250,000 245,375.00 2.700% 04/29/22 04/29/25 972 QUARTERLY Americu Credit Union 250,000 245,995.00 2.800% 05/02/22 05/02/25 975 QUARTERLY Synchrony Bank Retail 250,000 247,857. 50 3.100% 05/20/22 05/20/25 993 QUARTERLY Connexus Credit Union 250,000 247,177.50 3.000% 05/26/22 05/27/25 1,000 QUARTERLY Bmo Harris Bank 250,000 248,105.00 3. 150% 06/17/22 06/17/25 1,021 QUARTERLY Saco Biddeford 250,000 246,102.50 2.850% 06/17/22 06/17/25 1,021 QUARTERLY Baxter Credit Union 250,000 250,000.00 3.400% 06/28/22 06/30/25 1,034 QUARTERLY Capital One Bank 250,000 249,407.50 3. 350% 06/29/22 06/30/25 1,034 QUARTERLY American First Cr Un 250,000 248,702.50 3.250% 07/15/22 07/15/25 1,049 QUARTERLY Trustone Financial Cr Un 250,000 248,707.50 3.250% 07/19/22 07/21/25 1,055 QUARTERLY American Natl Bank 250,000 247,637.50 3. 100% 07/27/22 07/28/25 1,062 QUARTERLY TCM Bank 250,000 249,367.50 3.350% 07/ 28/22 07/28/25 1,062 QUARTERLY Generations Bank 250,000 249,720.00 3. 400% 08/03/22 08/04/25 1,069 QUARTERLY Direct Fed Credit 250,000 249,330.00 3. 500% 08/17/22 08/18/25 1,083 QUARTERLY Resource One Credit 250,000 248,980.00 3.300% 08/17/22 08/18/25 1,083 QUARTERLY Connext Credit 250,000 250,380.00 3.500% 08/31/22 08/29/25 1,094 QUARTERLY Skyone Fed Credit 250,000 250,972.50 3. 600% 08/30/22 09/02/25 1,098 QUARTERLY Negotiable CD TOTAL 13,995,000$ 13,709,007 $
CD TOTAL 13,995,000$ 13,709,007 $
City of Clovis
Certificates of Deposit
As of August 31, 2022
ATTACHMENT 3
12 AGENDA ITEM NO. 2.

MARKET INTEREST INVEST MATURITY MATURITY FROM INTEREST
Municipal Securities COST PRICE RATE DATE DATE 08/31/22 FREQUENCY Huntington Beach Pension Bond 1,000,000 974,190 0.381% 04/01/21 06/15/23 288 QUARTERLY Fresno Unified Taxable Go Ref Bond 500,000 485,365 0.462% 09/30/20 08/01/23 335 QUARTERLY Pomona Cali Uni Sch Dist Go Bond 815,000 791,667 0.534% 10/20/20 08/01/23 335 QUARTERLY San Jose CA USD Ref Bond 775,000 750,991 0.221% 01/20/21 08/01/23 335 QUARTERLY Vista CA USD Ref Bond 750,000 727,005 0.221% 01/20/21 08/01/23 335 QUARTERLY William Hart Cali HS Go Bond 1,000,000 970,740 0.366% 12/23/20 08/01/23 335 QUARTERLY Jefferson Cali Elem Sch Dist Go Bond 710,000 686,826 0.399% 10/27/20 09/01/23 366 QUARTERLY Santa Rosa Calif Watr Ref Bond 350,000 339,448 0.578% 12/01/20 09/01/23 366 QUARTERLY California St Univ Ref Bond 3,455,000 3,325,368 0.475% 04/01/22 11/01/23 427 QUARTERLY San Diego CA Convention Ref Bond 1,450,000 1,400,642 1.527% 08/18/22 04/15/24 593 QUARTERLY Santa Ana College Ref Bond 440,000 413,710 0.644% 12/17/21 08/01/24 701 QUARTERLY Antelope Valley CA Ref Bond 750,000 706,193 1.767% 05/12/22 08/01/25 1,066 QUARTERLY Chabot Las Positas Cmnty Clg Bond 1,490,000 1,369,236 0.880% 04/29/22 08/01/25 1,066 QUARTERLY Santa Ana CCD Ref Bond 250,000 227,503 0.744% 05/12/22 08/01/25 1,066 QUARTERLY Los Angeles CA USD Ref Bond 1,000,000 910,970 1.455% 11/15/21 07/01/26 1,400 QUARTERLY Chabot Las Positas Cmnty Clg CA 3,505,000 3,139,323 1.080% 07/27/22 08/01/26 1,431 QUARTERLY Chaffey CA High School Ref Bond 1,565,000 1,485,561 2.475% 06/30/22 08/01/26 1,431 QUARTERLY Huntington Beach HS Dist Ref Bond 3,305, 000 2,985,473 1.208% 04/29/22 08/01/26 1,431 QUARTERLY Placentia Yorba USD Ref Bond 1,110,000 997,169 1.070% 05/31/22 08/01/26 1,431 QUARTERLY San Diego CA Cmnty Ref Bond 470,000 445,132 2.299% 04/29/22 08/01/26 1,431 QUARTERLY San Ramon Valley CA USD Ref Bond 2,125,000 1,914,880 1.147% 11/03/21 08/01/26 1,431 QUARTERLY Sonoma Cnty Jr College Ref Bond 2,000,000 1,895,760 2.447% 06/30/22 08/01/26 1,431 QUARTERLY San Diego CA Pub Facs Ref Bond 1,625,000 1, 489,800 1.812% 08/18/22 10/15/26 1,506 QUARTERLY El Dorado CA Irr Dist Ref Bond 1,175,000 1,060,344 1.687% 08/18/22 03/01/27 1,643 QUARTERLY Fremont CA USD Ref Bond 1,140,000 1,036, 032 2.000% 05/31/22 08/01/27 1,796 QUARTERLY Saddleback VY Uni Ref Bond 3,000,000 2,817, 120 2.400% 08/10/22 08/01/27 1,796 QUARTERLY Mun. Securities TOTAL 35,755,000$ 33,346,444 $
Municipal Securities TOTAL 35,755,000$ 33,346,444 $
City of Clovis
Municipal Securities
As of August 31, 2022
ATTACHMENT 4
13 AGENDA ITEM NO. 2.

Treasury Rates as of August 31, 2022
3 month Treasury bill 2.96
6 month Treasury bill 3.32
2 Yr Treasury note 3.45
3 Yr Treasury note 3.46
5 Yr Treasury note 3.30
10 Yr Treasury note 3.15

CITY OF CLOVIS

FINANCE DEPARTMENT
AUGUST 31, 2022 TREASURY RATES
As indicated in the above graph, treasuries increase from 3-month to 3-year notes, then decrease to 10-year notes.
0 0.5
1 1.5
2 2.5
3 3.5
4 3 month
Treasury bill
6 month
Treasury bill
2 Yr Treasury
note
3 Yr Treasury
note
5 Yr Treasury
note
10 Yr
Treasury note

INTEREST RATES

TREASURIES
TREASURY RATES ON AUGUST 31, 2022
ATTACHMENT 5
14 AGENDA ITEM NO. 2.

TO: Mayor and City Council
FROM: Finance Department
DATE: December 19, 2022
SUBJECT: Finance – Receive and File – Treasurer’s Report for the Month of August 2022.

ATTACHMENTS: 1. Summary of Cash Balances

2. Summary of Investment Activity

3. Investments with Original Maturities Exceeding One Year

Attached for the Council’s information is the Treasurer’s Report for the month ended August 31, 2022.

Pursuant to Section 41004 of the Government Code of the State of California, the City Treasurer is required to submit a monthly report of all receipts, disbursements, and fund balances.

Attachment 1 provides a summary of the beginning balance, total receipts, total disbursements, ending balance for all funds, and a listing, by fund, of all month end fund balances. Attachment 2 summarizes the investment activity for the month and distribution, by type of investment, held by the City. Attachment 3 lists all investments with original maturities exceeding one year as of the month ended August 31, 2022.

Prepared by: Jeffrey Blanks, Deputy Finance Director

Reviewed by: City Manager AH

15 AGENDA ITEM NO. 3.

Previous Balance 4,869,991.36$
Deposits 47,948,187.24
Disbursements (45,059,778.63)
Current Balance 7,758,399.97$

FUNDS BALANCE
100 General Fund 16,631,956.28 $
201 Local Transportation 18,119,712.28
202 Parking and Business Improvements 132,708.89
203 Off Highway Use 71,320.45
204 Community Facilities District 2020-1 103,702.77 205 Senior Citizen Memorial Trust 55,192.28
207 Landscape Assessment District 6,443,569.74
208 Blackhorse III (95-1) Assessment District 100,748.95 301 Park & Recreation Acquisition 13,106,259.10
305 Refuse Equipment Reserve 2,273,398.95
310 Special Street Deposit Fund 44,522,670.95
313 Successor Agency 640,454.16
314 Housing Successor Agency 1,383,677.66
402 1976 Fire Bond Redemption 25,475.23
404 1976 Sewer Bond Redemption Fund 411,663.64
501 Community Sanitation Fund 16,069,707.98
502 Sewer Service Fund 36,091,349.88
504 Sewer Capital Projects-Users 503,211.69
506 Sewer Capital Projects-Developer 6,229,676.63
507 Water Service Fund 41,381,406.85
508 Water Capital Projects-Users 7,121,880.45
509 Water Capital Projects-Developer 15,173,027.47 515 Transit Fund 3,737,363.47
540 Planning & Development Services 16,214,543.47
601 Property & Liability Insurance 621,352.96
602 Fleet Maintenance 22,081,103.13
603 Employee Benefit Fund 1,765,941.37
604 General Government Services 36,424,344.85
701 Curb & Gutter Fund 162,706.81
703 Payroll Tax & Withholding Fund 1,428,234.12
712 Temperance/Barstow Assmt Dist (98-1) 76,782.52 713 Shepherd/Temperance Assmt Dist (2000-1) 5,797.48 715 Supp Law Enforcement Serv (21,436.19)
716 Asset Forfeiture 209,832.07
720 Measure A-Public Safety Facility Tax 1,607.26
736 SA Admin Trust Fund 1,421.40
741 SA Debt Service Trust Fund (893,668.40)
747 Housing Successor Trust Fund 1,137.98
SUBTOTALS 308,409,836.58$
999 Invested Funds (300,651,436.61)
TOTAL 7,758,399.97$
Statement of Cash Balances
As of August 31, 2022
City of Clovis
ATTACHMENT 1
16 AGENDA ITEM NO. 3.

Balance of Investments Previous Month End $299,506,939.11 Time Certificates of Deposit Transactions
Investments 1,500,000.00
Withdrawals (750,000.00)
Total CD Changes 750,000.00
Other Changes
Government Securities 11,546,285.00
Local Agency Investment Fund 0.00
Municipal Securities 7,250,000.00
Sweep Account (18,401,787.50)
Total Other Changes 394,497.50
Balance of Investments Current Month End 300,651,436.61$ Insured CD's 13,995,000.00
Government Securities 142,778,994.85
US Treasury Notes 0.00
Local Agency Investment Fund 74,651,232.78
Municipal Securities 35,755,000.00
Sweep Account 33,471,208.98
Investment Total 300,651,436.61$
For the month of August 31, 2022
City of Clovis
Distribution of Investments
As of August 31, 2022
City of Clovis
Summary of Investment Activity
ATTACHMENT 2
17 AGENDA ITEM NO. 3.

Investment
Balance At Stated
Institution Face Value Amortized Cost Maturity Rate
FHLB 6,000,000.00 6,021,482 9/9/2022 2.000%
FFCB 3,000,000.00 2,994,423 10/11/2022 1.375%
FFCB 5,000,000.00 5,003,235 10/13/2022 1.600%
FHLB 5,000,000.00 5,019,684 12/9/2022 1.875%
FHLB 8,000,000.00 8,018,286 12/9/2022 1.875%
FAMCMTN 8,500,000.00 8,521,148 2/27/2023 1.350%
FHLB 13,000,000.00 13,282,915 3/10/2023 2.125%
FHLB 5,000,000.00 5,128,598 3/10/2023 2.125%
FFCB 5,000,000.00 5,000,000 3/1/2024 0.250%
FFCB 2,000,000.00 1,999,174 3/18/2024 0.300%
FHLB 5,000,000.00 5,000,000 6/7/2024 0.350%
FHLB 5,000,000.00 4,972,423 11/15/2024 1.050%
FHLB 4,000,000.00 3,982,075 2/28/2025 1.750%
FHLB 4,000,000.00 4,000,000 4/25/2025 2.750%
FAMCMTN 4,000,000.00 3,953,028 7/28/2025 0.750%
FAMCMTN 5,000,000.00 4,953,442 9/8/2025 0.600%
FHLB 5,000,000.00 4,966,655 2/11/2026 0.580%
FHLB 4,000,000.00 3,928,967 2/24/2026 0.750%
FFCB 5,000,000.00 4,969,955 9/28/2026 0.940%
FHLB 4,000,000.00 3,649,200 10/28/2026 1.150%
FHLB 6,000,000.00 5,988,899 11/24/2026 1.250%
FHLB 5,000,000.00 5,119,620 12/11/2026 2.125%
FHLB 4,500,000.00 4,043,250 2/24/2027 1.020%
FHLB 4,000,000.00 3,714,537 2/26/2027 0.900%
FHLB 4,000,000.00 4,000,000 3/8/2027 2.375%
FHLB 5,000,000.00 4,550,000 3/8/2027 1.020%
FHLB 5,000,000.00 4,998,000 3/8/2027 3.250%
FHLB 5,000,000.00 5,000,000 3/8/2027 3.600%
Original Maturities Exceeding One Year
As of August 31, 2022
City of Clovis
ATTACHMENT 3
18 AGENDA ITEM NO. 3.

TO: Mayor and City Council
FROM: General Services Department
DATE: December 19, 2022
SUBJECT: General Services – Approval - Res. 22-___, Authorizing Amendments to the City’s Classification and Compensation Plans to Adopt a Communications and Marketing Analyst with a Salary Range of $7,711 - $9,373 per month; and Approval – Res. 22-___, Amending the City’s FY 2022-23 Position Allocation Plan by deleting one (1) Public Affairs and Information Manager and adding one (1) Communications and Marketing Analyst.

ATTACHMENTS: 1. Resolution 22-___ Classification and Compensation Plans

2. Resolution 22-___ Position Allocation Plan Adjustment

CONFLICT OF INTEREST
None.

RECOMMENDATION
For City Council to approve a resolution authorizing amendment to the City’s Classification and Compensation Plans by adopting a Communications and Marketing Analyst with a Salary Range of $7,711 - $9,373 per month and approve a resolution amending the City’s FY 2022-23 Position Allocation Plan to delete one (1) Public Affairs and Information Manager and add one (1) Communications and Marketing Analyst.

EXECUTIVE SUMMARY
The City has a need to create a position to serve the communications and marketing needs of the City of Clovis. The proposed Communications and Marketing Analyst will be assigned to the Economic Development, Housing and Communications Department , and replaces the existing Public Affairs and Information Manager position. Since 2019, the City has had a dedicated employee serving the communications and marketing needs of the City who worked directly under the City Manager. With the inclusion of the Communications Division to the Economic Development and Housing Department, that role now reports to the Department Director, who will provide significant assistance and oversight to the role. This newly created position covers the growing needs of the City and will engage with the public online, market new and existing programs and services, manage social media accounts, work with the local media, and help plan and execute events. This position will not add to the overall employee headcount as it will replace the Public Affairs and Information Manager position which was funded in the adopted FY 2022- 23 budget. Modification of the City’s Classification, Compensation, and Position Allocation Plans require the City Council’s approval.

19 AGENDA ITEM NO. 4.

BACKGROUND
In November of 2022 , the City’s Public Affairs and Information Manager was promoted to the Economic Development, Housing and Communications Director , creating an opportunity to evaluate the future communication needs of the City. The new Director, in partnership with the City Administration Department, determined that in addition to the traditional public information skillset required, the City also ha s a need to build upon the existing marketing efforts already taking place to promote City services, programs and events.

While traditional media partnerships are still crucially important, more residents are turning to social media for information related to City provided services and programs, as well as to learn about events taking place in the community. The City currently maintains multiple websites and more than a dozen social media accounts across platforms including Facebook, Instagram, Nextdoor, Twitter and Tik Tok, all of which need to be updated regularly with information on new and existing programs and services. S upporting community partners in their efforts to bring attractions to the City is also necessary, and an important function of the role. To properly serve our residents and support all City Departments, we also have a need to increase our research and surv eying efforts to effectively market the City as an a ppealing place for business and attractions, and to continue to improve our communication with our residents. Redefining this position to increase the focus on marketing, in addition to communications, wi ll allow us to be more effective in all our communication and marketing goals. The incumbent will also educate and provide social media and marketing training to all City staff.

The recommended salary range for the Communications and Marketing Analyst will be $7,711 - $9,373 per month. The Communications and Marketing Analyst is a management level position which will replace the Public Affairs and Information Manager position within the current 2022 - 23 budget, providing for salary savings for the remainder of the fiscal year.

FISCAL IMPACT
The fiscal impact of salary and benefits for the remainder of FY 2022-23 will be a savings of approximately $10,500.

REASON FOR RECOMMENDATION
Creation of this classification is necessary in order to meet the needs within the City. The recommended changes to the City’s Classification, Compensation, and Position Allocation Plans require Council approval.

ACTIONS FOLLOWING APPROVAL
Personnel staff will add the ne w classification description to the City’s Classification and Compensation Plans. The position allocation in the Administration, Planning and Development Services, General Services , and the Public Utilities Departments will be modified as noted in Attachment A of Attachment 2.

Prepared by: Lori Shively, Personnel/Risk Manager

Reviewed by: City Manager AH
20 AGENDA ITEM NO. 4.

Attachment 1

RESOLUTION 22-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS APPROVING AMENDMENTS TO THE CITY’S CLASSIFICATION AND COMPENSATION PLANS BY

ADDING THE COMMUNICATIONS AND MARKETING ANALYST TO THE

ADMINISTRATION, PLANNING AND DEVELOPMENT SERVICES, GENERAL SERVICES,

AND PUBLIC UTILITIES DEPARTMENTS

WHEREAS, it has been determined that it is necessary to add the Communications and Marketing Analyst classification to support City media relations, marketing, advertising and citizen communications; and

WHEREAS, amendments to the classification definition, class characteristics, duties, and education and experience are necessary in order to accurately depict the current scope of duties; and

WHEREAS, modification of the City’s Classification and Compensation Plans requires authorization by the City Council.

NOW, THEREFORE, BE IT RESO LVED, that the City of Clovis shall modify the City’s Classification and Compensation Plans to include the Communications and Marketing Analyst classification as noted in Attachment A, with a salary range of $7,711 - $9,373.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on December 19, 2022, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: December 19, 2022

______________________________ ______________________________ Mayor City Clerk

21 AGENDA ITEM NO. 4.

City of Clovis
Communications and Marketing Analyst
Monthly Salary: $7,711 - $9,373

DEFINITION
Under administrative direction, perform a variety of professional level and highly complex assignments involving planning, coordinating, and executing comprehensive communications and marketing efforts for the City, including the publicity of city programs, services and events.

Responsible for media and community outreach and engagement, content management of City websites and social media accounts, and digital content creation. This position will represent the City at a wide variety of meetings and public forums and provide responsible assistance to City staff, elected and appointed officials; and to perform related work as required.

CLASS CHARACTERISTICS

This single-position classification is a journey level professional managerial classification that reports to the City Manager or Economic Development, Housing and Communications Director. Incumbent performs the assigned duties with minimum of supervision and develops, plans, organizes, supervises and implements various City or department wide programs. This classification has considerable independence in selecting work methods and procedures.

Instructions given by the supervisor generally do not provide all of the necessary information to complete the assignment. Incumbents typically give guidance to other office support staff.

Incumbent is expected to resolve most problems confronted through the application of judgment and precedent, referring to the supervisor only those situations which involve the establishment of new procedures, or which involve solutions which are inconsistent with established procedures or policies.

EXAMPLES OF DUTIES

Provide support and advice to all City departments, City Manager, City Council, and the Mayor regarding internal and external communications, media relations, marketing, advertising and citizen relations and participation. Develop proactive programs and procedures to educate the public, positively influence public opinion and make citizens better informed voters. Develop crisis and emergency response communication programs for such situations as fires, industrial accidents, natural disasters, and major crimes. Interface with the media and organize press briefings. Research, write, edit and issue press releases, news articles, feature stories and public service announcements for print, radio, television and digital media. Respond to inquiries from the media, City Officials, community groups, businesses, employees and general public; administer marketing and advertising contracts for City enterprises. Plan, coordinate and publicize public events and workshops. Work with City staff in analyzing specific departmental communication needs and developing strategic communication and marketing plans and programs to meet those needs. Create and

Attachment A
22 AGENDA ITEM NO. 4.

implement, in collaboration with the City Manager’s Office, internal communication plans focused on sharing information with employees and collecting information from them. Provide staff assistance to the City Manager’s office, and other departments; prepare and present staff reports and other necessary correspondence. Conduct surveys, perform research and analyze data for use in assisting departments throughout the City achieve their goals.

Coordinate assigned activities with those of other departments, outside agencies, and organizations. Supervise, train, and review the work of technical and administrative support staff, volunteers and work groups. Participate on a variety of boards, commissions, and committees. Be familiar with social media and stay informed with new social media trends and perform related duties as assigned.

TYPICAL QUALIFICATIONS

LICENSE REQUIRED
 Possession of a valid California driver’s license and a good driving record.

EDUCATION AND EXPERIENCE
Education:
 Graduation from accredited college or university with a bachelor’s degree in Journalism, Public Relations, Marketing, Communications, or a related field.

And

Experience:
 Five (5) years of media experience, journalism, public relations, marketing, or community relations.

QUALIFICATIONS
Knowledge of:
 Basic principles and practices of administrative procedures and public administration including organization, staff supervision, workflow, data collection and analysis;  Principles and practices of public information dissemination and promotion;  Principles and practices of journalism and public relations and an understanding of various media;
 Principles and practices of marketing; including research, analytical, and statistical methods and techniques;
 Knowledge and use of social media and community engagement;  Use organizational skills to successfully manage projects;  Graphic creation and video editing software, including Adobe;  Update and maintain website content and design through the WordPress content management system;
23 AGENDA ITEM NO. 4.

 Prepare and distribute press releases;
 Spreadsheet, database, word processing and presentation computer software at an advanced level;
 Report creation and oral presentation;
 Planning and coordinating public events and workshops;  State and local government organization and operation;  Federal, State, and local laws and regulations relating to assigned areas of responsibility.

Ability to:
 Communicate clearly, both verbally and in writing;
 Work independently and strategically;
 Manage multiple projects at once;
 Exercise patience and professionalism;
 Demonstrate strong computer and media equipment operation and setup skills;  Perform photography and videography work as needed;
 Create graphic material using software such as InDesign, Illustrator, Photoshop, and Canva
 Edit recorded video with video editing software including Adobe Premiere Pro, iMovie and/or other video editing software;
 Operate standard office equipment;
 Operate a vehicle, observing legal and defensive driving practices;  Relate and communicate with the media public with a courteous behavior and professional demeanor;
 Update and maintain website content and design through the WordPress content management system;
 Coordinate special projects and community outreach;
 Engage and communicate with the media over email, text, social media and in person.

SUPPLEMENTAL INFORMATION

PHYSICAL DEMANDS AND WORKING CONDITIONS
 Work is primarily sedentary and performed in an office environment.  Incumbent is required to attend periodic evening meetings and occasional weekend events.
 Incumbent is required to travel within and out of City to attend meetings.  Positions in this classification are designated as confidential under the Meyers-Millas Brown Act and are exempt employees under the Fair Labor Standards Act.

24 AGENDA ITEM NO. 4.

ATTACHMENT 2
RESOLUTION 22-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS
APPROVING AN AMENDMENT TO THE FY 2022-23 POSITION ALLOCATION PLAN

WHEREAS, the FY 2022-23 Position Allocation Plan in the Administration, Planning and Development Services, General Services , and Public Utilities Department was approved as part of the FY 2022-23 City budget adoption process; and

WHEREAS, a review of the staffing needs of the City indicates that it is necessary to create a Communications and Marketing Analyst classification to maintain the social media accounts, marketing, and media relations for the City; and

WHEREAS, the Communications and Marketing Analyst position will be added to the 2022-2023 position allocation while the Public Affairs and Information Manager will be deleted; and

WHEREAS, amending the City’s adopted FY 2022-23 Position Allocation Plan requires City Council authorization.

NOW THEREFORE, BE IT RESOLVED that the City of Clovis shall amend the City’s FY 2022-23 Position Allocation Plan as noted in Attachment A.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on December 19, 2022, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: December 19, 2022

______________________________ ______________________________ Mayor City Clerk

25 AGENDA ITEM NO. 4.

POSITION ALLOCATION ADJUSTMENT BY DEPARTMENT FY 2022-23

DEPARTMENTS NUMBER OF POSITIONS

Administration, Planning and Development Services, General Services , and Public Utilities Departments.

Add:

Communications and Marketing Analyst:

Administration .50
Planning and Development Services .10
General Services .10
Public Utilities .30

Delete: Public Affairs & Information Manager

Administration .50
Planning and Development Services .10
General Services .10
Public Utilities .30

ATTACHMENT A
26 AGENDA ITEM NO. 4.

TO: Mayor and City Council
FROM: General Services Department
DATE: December 19, 2022
SUBJECT: General Services – Approval – Res. 22 -___, Amending the City’s FY 2022-2023 Position Allocation Plan by deleting one (1) Principal Office Assistant and adding one (1) Administrative Assistant position within the Police Department.

ATTACHMENTS: 1. Res. 22-___, Position Allocation Plan

CONFLICT OF INTEREST
None.

RECOMMENDATION
For Council to approve a resolution amending the City’s FY 2022-2023 Position Allocation Plan by deleting one (1) Principal Office Assistant position and adding one (1) Administrative Assistant position within the Police Department.

EXECUTIVE SUMMARY
Currently, the Police Department Records Division is authorized for seven (7) Principal Office Assistant positions and two (2) Administrative Assistant positions for fiscal year 2022-2023. It is recommended that the City’s Position Allocation Plan be amended by deleting one (1) Principal Office Assistant positions and adding one (1) Administrative Assistant positions within the Police Department to improve communication and provide additional support to staff. Council approval is required for changes to the Position Allocation Plan.

BACKGROUND
The Police Department has evaluated the work assignments and needs in the Records Division and have determined that the addition of one (1) Administrative Assistant position and the deletion of one (1) Principal Offic e Assistant position will more efficiently support the current needs of the department.

The Records Division has the responsibility for ensuring police records and confidential information are only released with proper authorization. The front -office processes records released to the public, while the back -office processes cases to be released to other law enforcement agencies and the district attorney’s office. By converting a Principal Office Assistant 27 AGENDA ITEM NO. 5.
to Administrative Assistant, the two separate areas wo uld have improved communication, increased support and added oversight in each area. In addition, the new position will help assist with the transition from the current case management system to a new system within the next year.

The position allocation change would result in six (6) Principal Office Assistants and three (3) Administrative Assistant positions within Records. The desired position allocation change results in the need to modify the City’s Position Allocation Plan, which requires Council approval.

FISCAL IMPACT
The fiscal impact of salary and benefits for this position allocation change would be approximately $8,000.00. There are adequate funds in the Police Department budget to cover any additional costs for each position.

REASON FOR RECOMMENDATION
The deletion of one (1) Principal Office Assistant position and the addition of one (1) Administrative Assistant position will provide needed additional oversight within the sensitiv e information within the Police Department Records Division. The change must be reflected in the authorized FY 2022-2023 Police Department position allocation. Modification of the Position Allocation Plan requires Council Approval.

ACTIONS FOLLOWING APPROVAL
The position allocation for the Police Department will be modified as noted in Attachment A of Attachment 1. The position will be filled through a current eligibility list.

Prepared by: Shonna Halterman, General Services Director

Reviewed by: City Manager AH

28 AGENDA ITEM NO. 5.

ATTACHMENT 1

RESOLUTION 22-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS
APPROVING AMENDMENTS TO THE CITY’S FY 22-23 POSITION ALLOCATION PLAN

WHEREAS, the FY 22-23 Position Allocation Plan in the Police Department was approved as part of the FY 22-23 City budget adoption process; and

WHEREAS, a review of the staffing needs of the City indicates that the addition of one (1) Administrative Assistant position and the deletion of one (1) Principal Office Assistant position is necessary in order to provi de the needed capacity to cover the complex work assignments within the Police Department Records Division; and

WHEREAS, amending the City’s adopted FY 22-23 Position Allocation Plan requires Cit y Council authorization.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Clovis that the City’s FY 22-23 Position Allocation Plan shall be amended as noted in Attachment A.

* * * * *

The foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on December 19, 2022, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: December 19, 2022

___________________________ __________________________ Mayor City Clerk

29 AGENDA ITEM NO. 5.

ATTACHMENT A

POSITION ALLOCATION ADJUSTMENT BY DEPARTMENT FY 22-23

DEPARTMENT NUMBER OF POSITIONS

Police Department

Add: Administrative Assistant 1.0

Delete: Principal Office Assistant 1.0

30 AGENDA ITEM NO. 5.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: December 19, 2022
SUBJECT: Planning and Development Services – Approval – Final Acceptance for Final Map for Tract 6221, located at the northwest corner of Ashlan Avenue and Locan Avenue (Wilson Premier Homes, Inc.)
(Councilmember Mouanoutoua has a conflict of interest on this item) ATTACHMENTS: 1. Vicinity Map

CONFLICT OF INTEREST
Councilmember Mouanoutoua owns property within 1000 feet of the subject property and, pursuant to law, must abstain from participation and decision regarding this item.

RECOMMENDATION
For the City Council to:

1. Accept the public improvements for Tract 6 221, and authorize recording the Notice of Completion; and

2. Authorize the release of the Performance Surety immediately and then release of the Labor and Materials Surety ninety (90) days after the recordation of the Notice of Completion, (provided no liens have been filed) and release of Public Improvements Maintenance Surety upon the expiration of the one -year warranty period and provided any defective work has been repaired to the City’s satisfaction.

EXECUTIVE SUMMARY
The owner, Wilson Premier Homes, Inc., has requested final acceptance of the public improvements constructed or installed in conjunction with this tract. The public improvements include all those shown on the subdivision improvement plans approved by the City Engineer.

The construction or installation of the public improvements is complete. The owner has requested final acceptance. Staff is recommending approval of their request.

All landscaping ha s been constructed. The construction or installation of the public improvements is complete. The owner has requested final acceptance. Staff is recommending approval of their request.
31 AGENDA ITEM NO. 6.

FISCAL IMPACT
The cost for periodic routine maintenance, as well as repairs needed as the improv ements deteriorate with age and usage, will be incorporated to the annual maintenance budget of the Public Utilities Department as these costs are identified.

REASON FOR RECOMMENDATION
The Subdivision Map Act requires that once construction of the required improvements has been completed in compliance with all codes, plans and specifications, and all other required documents have been completed and submitted, final acceptance is required, and the appropriate sureties are released.

ACTIONS FOLLOWING APPROVAL
Record the Notice of Completion and release the Performance, Labor and Materials, and Maintenance Sureties as appropriate.

Prepared by: Gene G. Abella, Civil Engineer

Reviewed by: City Manager AH

32 AGENDA ITEM NO. 6.

Attachment 1
33 AGENDA ITEM NO. 6.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: December 19, 2022
SUBJECT: Consider Approval - Res. 22-___, CUP2022-005 Appeal. Consideration of a resolution denying a request by George Beal to overturn the Planning Commission’s approval of CUP2022 -005, which allows a 24 - hour convenience store and the sale of liquor and alcoholic beverages for off-site consumption on property located on the northeast corner of N. Temperance Avenue & Owens Mountain Parkway. Dave Virk, LLC, owner/applicant; Bottom Line Group LLC – Seth Ramirez, owner's representative; George Beal – Beal Developments LLC; applicant of appeal.

Staff: Marissa Jensen, Assistant Planner
Recommendation: Deny appeal and approve project
ATTACHMENTS:

1. Draft Resolution

2. CUP2022-005, Conditions of Approval

3. Appeal Submittal

4. Applicant’s Response to Appeal

5. Sunrise Pavilion Planned Commercial Center (P-C-C) Use Schedule

CONFLICT OF INTEREST
None.

RECOMMENDATION
Staff recommends that the City Council uphold the Planning Commission’s approval of CUP2022-005.

EXECUTIVE SUMMARY
The appellant is requesting that the City Council overturn the Planning Commission’s approval of Conditional Use Permit (CUP) 2022-005 which occurred at its October 27, 2022, meeting. The CUP approval was for a new convenience store with fuel sales, the sale of liquor and alcoholic beverages for off-site consumption, and 24-hour operations on property located at the northeast corner of North Temperance and Owens Mountain Parkway, in the existing Sunrise Pavilion Planned Commercial Center (P -C-C). On November 10, 2022, staff received a n appeal of the 34 AGENDA ITEM NO. 7.

Planning Commission’s approval of CUP2022-005 (Attachment 3). After review of the applicant’s reasons for appeal, staff’s findings remain consistent with the initial conditional use permit approval and therefore, staff recommends that the City Council make a fin ding to deny the appeal.

FIGURE 1 – Project Location

BACKGROUND
On October 27, 2022, the Planning Commission approved three conditional use permits associated with the proposed development at the northeast corner of North Temperance and Owens Mountain Parkway (subject site). The proposed development includes two buildings, one on the eastern part of the site (“East Building”) and one on the western part of the site (“West Building”) (see figure 2). A brief description of each of the three use permits and how they relate to the overall development of the subject site is provided as follows:

 CUP2022-004 approved a drive through use/service window for a quick ser vice restaurant (QSR) inside the East Building. The appeal does not affect this part of the overall project.

 CUP2022-005 approved a 24-hour convenience store with fuel sale, the sale of liquor and alcoholic beverages for off -site consumption, and a QSR dr ive through use inside the West Building. This is the approval that is being appealed by Mr. Beal.

 CUP2022-007 was a request to amend the previously adopted use schedule in the Sunrise Pavilion Planned Commercial Center (P-C-C) to include 24-hour uses. This was 35 AGENDA ITEM NO. 7.
necessary to accommodate the 24 -hour convenience store proposed within the West Building with CUP2022-005. The appeal does not affect this part of the overall project.

The Conditional Use Permit Process
The conditional use permit process enables the Planning Commission to make a finding that the proposed development is in compliance with the intent and purpose of Chapter 9. 64.050 of the City’s Municipal Code. The chapter provides the following list of six findings required for the approval of a CUP. The proposed development must be consistent with the findings:

1. The proposed use is conditionally allowed within, and would not impair the integrity and character of, the subject zoning district and is in compliance with all of the applicable provisions of this Development Code;

2. The proposed use is consistent with the General Plan and any applicable specific plan;

3. The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses and would not create significant noise, traffic, or other conditions or situations that may be objectionable or detrimental to other allowed uses operating nearby or adverse to the public interest, health, safety, convenience, or welfare of the City;

4. The subject parcel is physically suitable in size and shape for the type and density/intensity of use being proposed;

5. There are adequate provisions for public access, water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety; and

6. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act.

The CUP process also provides the opportunity for the applicant or any aggrieved per son to appeal the Planning Commission’s determination or decision to City Council. During the appeal hearing, the City Council may consider any issue(s) associated with the appeal in addition to the specific grounds for the appeal. As the review authority of this appeal, City Council must consider the same six findings as did the Planning Commission, and if the Planning Commission’s approval is to be upheld , the City Council must adopt the six findings as outlined above.

Moreover, when reviewing the appeal, the City Council may:

1. By resolution, affirm, affirm in part, or reverse the action, the determination, or decision that is the subject of the appeal;

2. Adopt additional conditions of approval deemed reasonable and necessary, and may even address issues or concerns that go beyond the subject of the appeal; or

36 AGENDA ITEM NO. 7.
=CUP2022-004: Quick Service
Restaurant with Drive Through
=CUP2022-005: Gas
Station & Convenience Store

3. Disapprove the permit or approval granted by the previous review authority, even though the appellant only requested a modification or elimination of one or more conditions of approval.

PROPOSAL AND ANALYSIS

CUP2022-005 Project Approval

Project Site
The project site is an approximately 1.9-acre vacant parcel that is located at the northeast corner of Temperance Avenue and Owens Mountain Parkway, and within the Sunrise Pavilion Commercial Center. This area is generally surrounded by commercial uses and office spaces.

The Sunrise Pavilion Commercial Center is partially developed with the majority of development on the south side of Owens Mountain Parkway including businesses such as the Chevron fuel station and Jonny Quick convenience market, Starbucks, McDonald's, and Riley’s.

As described in the Background section of this report, t he project applicant requested, and the Planning Commission approved three conditional use permits to facilitate the development of the subject site. However, only one of these approvals, CUP2022 -005, was appealed.

CUP2022-005 authorizes the following uses for the West Building on the site:

 Fuel station with convenience market
 Drive-through use for co-tenant space
 Alcohol sales for off-site consumption
 24-hour operations

The West Building consists of a 4,500 square foot convenience store with a 1,500 square foot designated food service -QSR co -tenant space and ancillary drive through . The convenience store proposed to operate in conjunction with fuel sales (including a fuel canopy) and the sale of liquor and alcoholic beverages for off-site consumption.

FIGURE 2 – Proposed Site Plan

37 AGENDA ITEM NO. 7.
24-Hour Operations
The Sunrise Pavilion Commercial Center is a planned commercial center with unique development standards and uses allowed. In the case of Sunrise Pavilion, a specific use schedule was established when the City Council approved the rezoning to P -C-C in 2002 (Attachment 5). Under this use schedule, general retail and restaurants are permitted by-right, while drive-up windows and convenience stores require the approval of a conditional use permit.

Prior to the approval of CUP2022-007, the use schedule did not allow for 24-hour uses. For this reason, the approval of CUP2022-007 was necessary to modify the existing use schedule to add 24-hour uses . City ordinance allows the modifications of P -C-C use schedules through the conditional use permit process. The Planning Commission approved CUP2022 -007 modifying the P-C-C use schedule to include 24-hour operations through conditional use permit approval.

Project Operations
The service station component of the project includes the sale of vehicle fuel. The convenience market will sell typical merchandise as well as sandwiches and alcohol. Alcohol sales will not exceed 25% of the retail area of the bu ilding. The service station and convenience market are proposing business hours to be 24 hours, seven days a week. The quick service restaurant is proposing business hours to be within normal business hours . There are no residential properties adjacent to the proposed site or other uses in close proximity that would be negatively impacted by 24-hour operations. No objections to the 24 -hour use had been identified prior to the appeal.

Drive Through Use and Standards
The approved 4,500 square foot convenience store was designed to include a 1,500 square foot co-tenant space with ancillary drive -through service. Similar to the QSR and retail space, the user for the co -tenant space is unknown and project operations are not yet ident ified for the drive-through location. The conditions of approval also specify that any future tenant identified by the City as a high-volume drive-through user may trigger additional review and requirements for vehicle stacking above the typical standard.

Alcohol Sales (Type 21)
As a part of the conditional use permit request, the applicant was seeking approval of alcohol sales for off -site consumption. The associated ABC license is a Type 21 which allows for the sale of beer, wine, and distilled spirits. Although this request for alcohol sales is included as part of CUP2022-005 as a matter of land use operation, based on a previous delegation by the City Council in 2000 and reaffirmed in 2011 , the Clovis Police Department (CPD) has full authority for decisions related to obtaining an ABC license. This request was routed to the City’s Police Department for review. Discussion with the Police Department confirmed that there are no concerns with the project proposal. In addition, there are no concerns with t he location of the convenience store regarding oversaturation of Type 21 ABC licenses within the designated census tract.

38 AGENDA ITEM NO. 7.

FIGURE 3 – Census Tract 55.12

Planning Commission Meeting
CUP2022-005 was brought before the Planning Commission for consideration at its October 27, 2022, meeting. The Planning Commission had no major comments or concerns related to the conditional use permit request. The applicant spoke in support of the projec t and provided background regarding the proposal. The appellant, Mr. Beal , was present at the hearing and spoke against the project. His concerns include the sale of alcohol and the 24 -hour operation proposed for this project which is located across the st reet from his business . Mr. Beal is the owner and operator of the Chevron fuel station/Jonny Quick convenience market. He expressed concern with the proximity of another entity that sells alcohol. Additionally, he believes the 24 - hour operation is inconsis tent with the character of the area. Due to these reasons, Mr. Beal believes the project will have adverse effects on his establishment’s success. Other than the applicant and Mr. Beal, no other testimony was presented regarding the project. The Planning Commission ultimately approved the CUP2022-005 by a vote of 5-0.

Below are staff’s findings for CUP2022 -005. These findings were provided in the staff report to the Planning Commission.

Finding 1:

The proposed use is conditionally allowed within and would not impair the integrity and character of, the subject zoning district and is in compliance with all of the applicable provisions of this Development Code.

Each component of the subject Project is allowed within the P -C-C Zone Districts with an approved conditional use permit. The Project will be in compliance with applicable provisions, development standards and subject to the conditions of approval. This Project will undergo site plan review (SPR) to further ensure that the site layout and development standards are met. 39 AGENDA ITEM NO. 7.

During the SPR review, the height, setbacks, parking standards, and aesthetics will be reviewed to ensure that applicable standards are met.

Finding 2:

The proposed use is consistent with the General Plan and any applicable Specific Plan.

This Project is consistent with the 2014 Clovis General Plan. The underlying General Plan land use designation of MU -BC (Mixed-use Business Campus) would remain unchanged, and the proposed use is acceptable within the underlying General Plan land use designation, according to the 2014 Clovis General Plan.

Finding 3:

The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses and would not create significant noise, traffic, or other conditions or situations that may be objectionable or detrimental to other allowed uses operating nearby or adverse to the public interest, health, safety, convenience, or welfare of the City.

The Project propose d three conditional use permits to allow the development of a small retail center. This Project is compatible with the existing uses and will complement the area in which it is situated. The Project complements the uses within the R -T Park and P-C-C Zone Districts and will not be out of the ordinary as it relates to the character of the surrounding area. Further, the Project will maintain the general circulation pattern by retaining primary ingress/egress from Owens Mountain Parkway and Temperance Avenue.

Finding 4:

The subject parcel is physically suitable in size and shape for the type and density/intensity of use being proposed.

The subject parcel is physically suitable in size and shape for the proposed project. The Project will be required to comply with all conditions from Public Utilities and Engineering, which will further ensure the site is suitable for the proposed uses.

Finding 5:

There are adequate provisions for public access, water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety.

The Project will comply with all applicable public health standards. Details and final approval will occur during engineering review if approved. This review will ensure utility services are sufficient to accommodate the Project and impose conditions for upgrades as needed. There are no concerns related to public utilities and services.

40 AGENDA ITEM NO. 7.

Finding 6:

The proposed project has b een reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and there would be no potential significant negative effects upon environmental quality and natural resources that would not be properly mitigated and monitored, unless findings are made in compliance with CEQA.

The City has determined that this Project is exempt from CEQA pursuant to CEQA Guidelines Section 15332 (Class 32 – Infill Development Projects) for the development and operation of CUP2022-005.

The Class 32 categorical exemption exempts Projects that satisfy the following criteria: (a) the Project is consistent with the applicable land use designation, General Plan policies, and zoning; (b) is located within city limits on a project site of no mo re than five acres substantially surrounded with urban uses; (c) is located on a site with no value as habitat for endangered, rare, or threatened species; (d) would not result in significant effects relating to traffic, noise, air quality, and water quality; and (e) is located on a site that can be adequately served by all utilities.

The exceptions identified in Section 15300.2 identify further review of an exemption by the project’s potential to result in a cumulative impact, significant effect, proximit y to a scenic highway, location on or within the vicinity of a hazardous waste site, and/or the potential to negatively impact a historical resource. Based on staff’s review, these exceptions would not be triggered by the proposed Project. The project is determined to be categorically exempt.

The Appeal
According to his appeal letter (Attachment 3), the appellant opposes the Project approval under the premise that the 24-hour operation and an additional Type 21 Liquor License are not suitable for the center. In the appeal letter, the appellant indicates that the Project would “change the character of the area”. The appeal highlights two concerns , the first being that two Type 21 Liquor Licenses would be across the street from each other. The second concern is that the 24- hour operation is not consistent with the Johnny Quick (appellant’s business) , Chevron, Starbucks, McDonald’s, and Riley’s hours across the street. According to the appellant, the change in character of the area could be detrimental to his business.

Staff’s Response to the Appeal
In response to the contentions of the appellant, staff has reviewed the appeal criteria and found that the basis of the appeal relies on errant assumptions. The appellant states that two Type 21 Liquor Licenses will be across from each other. The Type 21 License allows for the sale of beer, wine, and distilled spirits to be purchased and consumed off -site. B oth the Clovis Police Department and Fresno Division of the Alcoholic Beverage Control expressed no concerns regarding having two Type 21 Licenses across from each other. Additionally, there are no concerns with the location of the convenience store regarding oversaturation of Type 21 AB C licenses within the designated census tract , 55.12. This census tract is not located in a high crime area. Four off-site sales locations (Type 21 Licenses) are allowed in this census tract and there are currently two existing.

41 AGENDA ITEM NO. 7.

In addition, staff is unable to support the appellant’s statem ent that the 24 -hour operation will change the character of the area. The P -C-C encourages innovative design resulting in an environment superior to conventional commercial development. This zoning district allows all uses customarily associated with commercial centers if designated as part of the approved development plan. The P-C-C use schedule can be amended through the CUP process. Since the use schedule was amended and approved through CUP2022 -007 by the Planning Commission, 24-hour operating uses are allowed within the P -C-C Zone District with an approved CUP.

In this situation, the existing similar uses (such as Mr. Beal’s business) operate from 4:30 am to 12:00 am Monday through Thursday, from 4:30 am to 1:00 am on Friday, from 5:00 am to 1:00 am on Saturday, and 6:00 am to 12:00 am on Sunday. Although these hours are not considered 24-hour, the difference is an average of 4.5 hours for closing hours. The difference in hours of operations is not significant enough that it would render a substantial deviation from existing characteristics of the area. Additionally, the 24-hour operation may be beneficial in service to the nearby hospital staff, California Health Science University students and faculty, City Fire Station 5, and visitors to the area.

Applicant’s Response to the Appeal

The applicant was provided with notice of the appeal and a copy of the appeal letter. Though not required by the Municipal Code , the applicant provided a response to the appeal which elaborates on why the Planning Commission’s approval should be upheld (Attachment 4).

FISCAL IMPACT
None.

REASON FOR RECOMMENDATION
In consideration of the information provided in this report, staff continues to support the Planning Commission’s approval of CUP2022-005. Staff has determined that the justification provided for the request to remove the Type 21 Liquor License and 24 -hour operation is not sufficient , and therefore recommends that the City Council uphold the Planning Commission’s determination to deny the appeal of CUP2022-005.

ACTIONS FOLLOWING APPROVAL
None.

Prepared by: Marissa Jensen, Assistant Planner

Reviewed by: City Manager JH
42 AGENDA ITEM NO. 7.

Attachment 1
RESOLUTION 22- ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS DENYING THE APPEAL AND APPROVING CONDITIONAL USE PERMIT 2022-005 TO ALLOW A 24-HOUR

CONVENIENCE STORE AND THE SALE OF LIQUOR AND ALCOHOLIC BEVERAGES FOR

OFFSITE CONSUMPTION AND A QSR DRIVE THROUGH USE WITHIN THE SUNRISE

PAVILION PLANNED COMMERCIAL CENTER AND FINDING THE PROJECT IS EXEMPT FROM CEQA PURSUANT TO A CLASS 32 CATEGORICAL EXEMPTION

WHEREAS, George Beal – Beal Developments LLC (Appellant), 1175 Shaw Avenue #104, Clovis, CA 93612, applied for an appeal to the Planning Commission’s approval of Conditional Use Permit 2022 -005 for a 24 -hour convenience store and the sale of liquor a nd alcoholic beverages for off-site consumption, located on the northeast corner of North Temperance Avenue and Owens Mountain Parkway; and

WHEREAS, the Planning Commission considered Conditional Use Permit 2022 -005 and the CEQA analysis outlined in the staff report provided for its October 27, 2022 meeting and determined the Project meets the requirements of a Class 32 (Infill Development) Categorical Exemption pursuant to CEQA Guidelines section 15332 on October 27, 2022; and

WHEREAS, at the duly noticed public hearing held on October 27, 2022, the Planning Commission approved CUP2022-005 by vote of 5-0; and

WHEREAS, the Municipal Code allows the applicant or any aggrieved person to appeal the Planning Commission’s approval of a CUP to the City Council, where the City Council may consider any issues(s) associated with the appeal in addition to the specific grounds for the appeal; and

WHEREAS, the City published notice of the public hearing in the Fresno Business Journal on Monday, December 5, 2022, mailed public notices to property owners within 850 feet of the Property ten (10) days prior to the City Council hearing, and otherwise posted notice of the public hearing according to applicable law; and

WHEREAS, the City Council held a noticed public hearing on December 19, 2022, to consider the Project; and

WHEREAS, the City Council has reviewed the record of proceedings as reflected in the October 27, 2022, staff report, which includes the November 10, 2022 , submittal of appeal to CUP2022-005, and other oral and documentary evidence presented to the City Council during the appeal.

43 AGENDA ITEM NO. 7.

NOW, THEREFORE, BE IT RESOLVED, that the City of Clovis resolves as follows:

1. Denies the appeal and upholds the Planning Commission’s approval of CUP2022-005 for the reasons expressed during the public hearing as further set forth in the administrative record.

2. The Project satisfies the required findings for approval of a conditional use permit, as follows:

a. The proposed use is conditionally allowed within, and would not impair the integrity and character of, the subject zoning district and is in compliance with all of the applicable provisions of this Development Code.
b. The proposed use is consistent with the General Plan and any applicable specific plan. c. The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses and would not create significant noise, traffic, or other conditions or situations that may be objectionable or detrimental to other allowed uses operating nearby or adverse to the public interest, health, safety, convenience, or welfare of the City.
d. There are adequate provisions for public access, water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety.
e. The subject parcel is physically suitable in size and shape for the type and density/intensity of use being proposed.
f. The proposed project has been reviewed in c ompliance with the provisions of the California Environmental Quality Act (CEQA).

3. The City Council finds that the Project is categorically exempt from CEQA pursuant to CEQA Guidelines section 15332 (Class 32 – Infill Development).

4. The basis for the findi ngs is detailed in the December 19, 2022, staff report, which is hereby incorporated by reference, the entire Administrative Record, as well as the evidence and comments presented during the public hearing.

* * * * * *
The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on December 19, 2022, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: December 19, 2022

______________________________ ______________________________ Mayor City Clerk

44 AGENDA ITEM NO. 7.

Attachment 2

CONDITIONS OF APPROVAL
CUP2022-005

PLANNING DIVISION CONDITIONS
(Marissa Jensen, Division Representative – (559) 324-2338)

1. This Conditional Use Permit approval is for a 24-hour convenience store with fuel sales and the sale of liquor and alcoholic beverages for offsite consumption (Type 21 ABC License) and a QSR drive through use at the northeast corner of Temperance & Owens Mountain Parkway , as indicated as “West Building” on th e site plan exhibit included in the October 27, 2022 Planning Commission staff report.

2. This Conditional Use Permit allows for the sale of alcohol within a convenience store, subject to all applicab le Alcoholic Beverage ABC license requirements and Clovis Police Department approval and conditions.

3. This Conditional Use Permit is not transferable to another location.

4. This Conditional Use Permit does not permit or otherwise allow for the operation of the site and/or uses other than explicitly de scribed in the accompanying staff report from the October 27, 2022 Planning Commission.

5. A separate Site Plan Review (SPR) and approval shall be required prior to the construction of any structures and/or prior to any site modifications.

6. The site and its exterior shall remain maintained and free from debris and trash. This includes no outdoor stacking of empty crates, boxes, and/or pallets along the exterior of the structures.

7. The applicant shall operate in a manner that complies with the Clovis Municipal Code so that it does not generate noise, odor, or vibration that adversely affects any adjacent properties.

8. There shall be no use of exterior music and/or outdoor speaker systems.

9. Unless otherwise permitted through an appropriate entitlement, there shall be no outdoor displays and/or sales of merchandise, including the use of vending machines (i.e., propane exchange cages, vending machines, ice machines, etc.).

10. All signs for this use shall comply with the Clovis Sign O rdinance and the Sunrise Pavilion PCC and require separate sign permits. Temporary signs shall be per Code and the use of mascots and sign waivers shall be prohibited.

11. The applicant shall consult with the City of Clovis Building Division on any building code requirements. All conditions of this Conditional Use Permit shall be addressed prior to operation of the facility.

45 AGENDA ITEM NO. 7.

12. Any future request to expand and/or modify the use shall be subject to an amendment to the CUP.

13. An abandonment or cessation of this use for a period exceeding 90 days shall cause this approval to be scheduled for revocation.

14. Fuel delivery shall pull completely onto the site during deliveries and shall not block any pedestrian and/or vehicular circulation.

15. All parking of employees shall occur on-site.

16. The use shall provide f or 5.0 vehicle parking spaces per 1,000 square feet of gross floor area.

17. The use shall comply with the standards for drive -through uses under Section

9.40.090 of the Clovis Municipal C ode, including but not limited to the following standards:
 Each drive -through aisle shall maintain a minimum 12 -foot width and a minimum 10 foot interior radius at curves;

 Each drive-through aisle shall be appropriately screened with a minimum 3- foot-high decorative masonry wall (a combination of landscape and walls may be used, subject to approval by the Planning Division); and

 Each drive-through aisle shall provide enough space to accommodate at least five (5) vehicles and at least eight (8) waiting vehicles between the menu board and the drive-up window.

18. As a minimum standard, all drive-through aisles shall provide sufficient space before the menu board to accommodate at least 5 waiting vehicles and at least 8 waiting vehicles between the menu board and the drive-up window. For any drive-through use identified by the City as being a high -volume drive -through, additional queueing capacity will be required based on the specific characteristics of the proposed use and the location and configuration of the drive-through lane(s).

19. Architecture shall be compatible with the existing PCC buildings and the R -T requirements.

20. CUP2022-005 may be reviewed one year after the facility use begins for compliance with the conditions of approval. Clovis Planning staff may conduct a review of the use in regard to conditions of approval and present findings of this review to the City Planner.

21. This conditional use permit is approved per the conceptual site plan attached as Exhibit 6 of the October 27, 2022 Planning Commission staff report . Any major modifications will require an amendment to this conditional use permit. 46 AGENDA ITEM NO. 7.

FIRE DEPARTMENT CONDITIONS
(Rick Fultz, Department Representative – (559) 324-2214)

Roads / Access

22. Fire Apparatus Access Roads (26’): Fir e apparatus access roads shall have an unobstructed width of not less than twenty -six feet (26’) to all buildings and an unobstructed vertical clearance of not less than fourteen feet (14’).

23. All Weather Access: The applicant shall provide all weather access to the site during all phases of construction to the satisfaction of the approved Clovis Fire Department Standard #1.3.

Fire Hydrants

24. Commercial Fire Hydrant: The applicant shall install ____1___ 4 ½” x 4 ½” x 2 ½” approved Commercial Type hydrant (s) and “Blue Dot” hydrant locators, paint fire hydrant(s) yellow with blue top and caps, and paint the curb red as specified by the adopted Clovis Fire Department Standard #1.4. Plans shall be submitted to the Clovis Fire Department for review and approva l prior to installation. The hydrant(s) shall be charged and in operation prior to any framing or combustible material being brought onto the site.

25. Looped Water Main: The applicant shall install approved looped water main capable of the necessary flow of water for adequate fire protection and approved by the Clovis Fire Department

26. Vehicle Impact Protection: The applicant must install protection posts that meet the City of Clovis specifications according to Clovis Fire Department Standard #1.7.

Fire Protection Systems

27. Fire Sprinkler – 2,500 Square Feet: The applicant shall install an automatic fire sprinkler system in buildings exceeding 2,500 square feet in gross floor area, as per NFPA 13. When buildings have eaves or overhangs exceeding a distance of four feet (4’) from the wall or support, the gross roof area shall be used to determine the need for automatic fire sprinklers, including covered walkways, patios, and porches. A Fire Department permit is required for an automatic fire sprinkler installation.

28. Underground Fire Service Line Installation: Installation shall be per Clovis Fire Standard #2.1.

29. Prior to installation, the applicant shall submit fire sprinkler underground water supply plans for review and approval and issuance of a permit by the Clovis Fire Department.

Prior to final acceptance, the underground fire service line shall be inspected, pressure tested and flushed in the presence of a Clovis Fire Department inspector. A permit is required to be on-site for all inspections requests.

47 AGENDA ITEM NO. 7.

30. FDC Location: The Fire Department Connection to the automatic fire sprinkler system shall be shown on the site utility plan. Installation shall be per Clovis Fire Standard #2.1.

31. This will be reviewed and approved by the Clovis Fire Department before installation.

32. Monitored Sprinklers: All valves controlling the water supply for automatic sprinkler systems and water flow switches on all sprinkler systems shall be electronically monitored for integrity.

33. Fire Extinguishers: The applicant shall install appr oved fire extinguishers, 2A -10BC minimum rating, one (1) per each 3000 square feet, with a maximum travel of seventy-five feet (75’) from any point in the building. These should be located and approved by the Clovis Fire Department prior to building occupancy.

Building Information

34. Address Numbers: Address numbers shall be installed on every building as per adopted Clovis Fire Department Standard #1.8. Large commercial, industrial buildings may require additional building addressing on the back side of the building as approved by Clovis Fire Department.

35. Building numbers shall:
 Be a minimum of twelve inches (12”) tall.
 Be a minimum of one and one-half inches (1½”) principal stroke width.  Be located above any eaves or walkway coverings, if possible.  Face the street in which it is addressed, if possible.  Buildings with multiple units shall be identified with unit numbers at both front and rear entrances.
 Buildings with multiple address numbers shall also have the address numbers on the rear door. (Rear door num bers are not required to be illuminated if reflectorized.)
 Unit numbers and rear door building numbers shall be at least four inches (4”) in height.

36. Review for compliance with fire and life safety requirements for the building interior and its intended us e are reviewed by both the Fire Department and the Building Departments. When a submittal for building plan review is made as required by the California Building Code by the architect or engineer of record for the building further comments will be given.

37. Provide a copy of the approved stamped site plan from the Planning Division. Site Plan shall include all fire department notes to verify compliance with requirements.

Site plans included with this plan submittal are subject to the conditions on the Planning Division approved set.

48 AGENDA ITEM NO. 7.

38. Requirements for hydrants and access will be addressed when the buildings are submitted for site plan review.

ENGINEERING / PUBLIC UTILITIES
(Sean Smith, Engineering Representative – (559) 324-2363) (Paul Armendariz, Public Utilities Representative – (559) 324-2649)

39. The applicant shall apply to the City for a Site Plan Review. The applicant shall be advised that modifications to the access of North Temperance Avenue and Owens Mountain Parkway may be required as part of the Site Plan Review.

COUNTY OF FRESNO HEALTH DEPARTMENT
(Kevin Tsuda, County of Fresno Health Representative – (559) 600-3271)

40. The applicant shall refer to the attached Fresno County Health Department correspondence. If the list is not attached, please contact the agency for the list of requirements.

FRESNO METROPOLITAN FLOOD CONTROL DISTRICT
(Robert Villalobos, FMFCD Department Representative – (559) 456-3292)

41. The applicant shall refer to the attached Fresno Metropolitan Flood C ontrol District correspondence. If the list is not attached, please contact the District for the list of requirements.

SAN JOAQUIN VALLEY AIR POLLUTION CONTROL DISTRICT
(Patrick Chimienti, SJVAPCD Department Representative – (559) 230-6139)

42. The applicant shall refer to the attached San Joaquin Valley Air Pollution Control District correspondence. If the list is not attached, please contact the District for the list of requirements.

FRESNO IRRIGATION DISTRICT
(Chris Lundeen, FID Representative – (559) 233-7161)

43. The applicant shall refer to the attached FID requirements. If the list is not attached, please contact the District for the list of requirements.

CALIFORNIA DEPARTMENT OF TRANSPORTATION
(Christopher Xiong, Caltrans Representative – (559) 908-7064)

44. The a pplicant shall refer to the attached Cal Trans requirements. If the list is not attached, please contact the District for the list of requirements.

49 AGENDA ITEM NO. 7.

Attachment 3
50 AGENDA ITEM NO. 7.

Attachment 4

Developers, Builders, & Advisors
Po Box 1095, Clovis, CA 93613

SUBJECT: CUP2022-005/007
Dear Planning staff and Members of the Clovis City Council, Please accept this summary for justification of the continued approval of Conditional Use Permit(s) CUP2022-005/007, which were approved by the Clovis Planning Commission with unanimous 5-0 votes.

As you are aware, Mr. George Beal filed a formal appeal on November 8, 2022. In the appeal, Mr. Beal cites two specific areas of concern: the Commission’s approval of an ABC license and secondly, the allowance of a 24-hour use for the proposed Convenience store. In Mr. Beal’s notice, the appeal letter does not expand on the specific reasons for his opposition to his concerns. In response, we ask that you please consider the following specific reasons why we processed the use permit and why staff, Clovis PD, and the Planning Commission supported the proposed Project and its operation:

AVAILABLE LICENSES
Under the most current Census Tract (55.12), the area allows for a total of four (4) off-sale beer, wine, and spirits licenses. There is currently one (1) utilized by George Beal’s Johnny Quick across the street to the south.

The approved convenience store would provide for the second Type 21 as permitted by the local Alcoholic Beverage Control and as reviewed by the Clovis Police Department. 24-HOUR OPERATION-
Although the Commission approved the convenience store to operate on a 24-hour basis, ABC regulations prohibit the sale of alcohol between the hours of 2 am and 6 am. Therefore, the 24- hour approval does not include the sale of alcohol between those hours, yet provides for the continuous operation of the store to fill a need to the immediate and surrounding areas as follows:
 Graduate Level Students
The neighboring accredited California Health Science University (CHSU) provides a graduate level education that can be demanding and requires late night studies and prepping for tests, finals and research. The proposed 24-hour use will provide a much-needed service in food and snack convenience as well as fuel service to an area that is devoid of such opportunities. Additionally, the area is poised to provide additional student housing to the north that would benefit from having food, gas and conveniences on a 24-hour basis.

The 24-hour use would provide for a variety of hot and fresh foods not typical of area convenience stores. Additionally, the proposed 24-hour use will include an online meal and convenience component that benefits students, neighboring housing, and Clovis Community Hospital staff and 51 AGENDA ITEM NO. 7.
[Type here]

visitors needing food, snacks, and fuel in a centralized location with access to the 168 Freeway at hours not typical of other areas of Clovis.
 Clovis Community Hospital
Hospital staff and its visitors could be served by the 24-hour use in that currently there are no immediate 24-hour food and fuel services in the area. Additionally, the hospital’s cafeteria closes daily at 9 pm, leaving staff and visitors with no options for a meal during those long night schedules or waiting on family. Subsequently, the 24-hour fuel service provides a safe, well-lit environment for healthcare workers in need of fuel service in that the 24-hour use will have 2-3 attendants at the store, providing an extra measure of safety while fueling.  Research and Technology
As the Research and Technology Park increases with pending development, the urban market and its food and fuel services operating on a 24-hour basis, it creates a safe, well-lit environment to get those late- night conveniences or food options.
 Clovis Police Department
As provided in staff’s report to the Commission, staff distributed the 24-hour request and request for a ABC Type-21 license to various internal and external agencies. Staff’s discussion with the Police Department confirmed that there are no concerns with the project proposal. Additionally, police representatives did not have concerns with the request for a Type 21 license and oversaturation within the designated census tract. Subsequent to approval, we are preparing for formal submittal of the Site Plan Review (SPR) process. During staff’s SPR review, the opportunity to address lighting, security systems and clear areas free of “dark zones” will surely be addressed and conditioned.

In conclusion, in response to the submitted appeal, we hope we have provided staff and the Council with a comfort level to uphold the Commission’s approval of CUP2022-005/007 to allow for the 24-hour use and submittal of a Type 21 license to the local ABC office.

Sincerely,

Orlando Ramirez
Bottom Line Developers
6781 N Palm, Suite #100
Fresno, CA 93704

52 AGENDA ITEM NO. 7.

SUNRISE PAVILION

Use Plan Legend

The uses permitted in the proposed Sunrise Pavilion Center are intended to support and compliment the tenants of the Research and Technology Business Park specifically benefiting the employees of the park, visitors to the park and the general public traveling on Highway 168.

Permitted Uses
The following uses may be permitted within the individual buildings of the site:

Bakeries and Bagels Hardware & Garden Supplies
Banks and financial services Health & Fitness Facility Barbers and Beauty Salons/Supplies Jewelry/Accessories Bookstores Laundry & Dry Cleaning
Business Support Services Music Stores
Candy/Vitamins Office Supply/Furniture Sales
Cards/Gifts Personal Services
Child Day Care Center Pharmacy and general drug
Coffee Houses Photo processing/sales
Computer & Software stores Professional Office
Copy Service Pub/Bar
Corporate Office Restaurants
Delicatessens Retail Apparel/shoes
Education/Vocational Uses Soft Goods retail
Electronic retail store Specialty Food Market
Entertainment facilities/Theater Technical or Trade School Fast Food Restaurants Telecommunications retail
Florist and floral supplies Toys/Hobbies/Pets
Food Uses (Not to exceed 15,000sf) Variety stores
Furnishings Video sales and rentals
General Office/Medical Office
General retail or services

The following uses may be permitted subject to Conditional Use Permit approved by the Planning Commission:

Automobile fuel sales
Automobile parts stores
Car washes
Cellular Telephone Towers
Convenience stores
Drive-up window use
Hotels and Motels
Restaurants with on-site alcohol sales

Attachment 5
53 AGENDA ITEM NO. 7.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: December 19, 2022
SUBJECT: Consider Approval – Res. 22-___, AC2022-001, A resolution of the City of Clovis making findings and a determination to authorize a Certificate of Tentative Cancelation for Land Conservation Contract No. 6273, for property located near the southeast corner of Shaw and De Wolf Avenues. Precision Civil Engineering, Inc., applicant; Frank and Georgia W. Sorrenti, property owners.

Staff: George González, Senior Planner
Recommendation: Approve
ATTACHMENTS: 1. Draft Resolution, AC2022-001, Conditions of Approval

2. Petition for Cancellation of Land Conservation Contract Submitted by Precision Civil Engineering, Inc., With Specified Alternative Use of Land

3. Certificate of Tentative Cancellation

4. Cancellation Valuation Issued by the Fresno County Assessor’s Office

CONFLICT OF INTEREST
None.

RECOMMENDATION
Staff recommends that the City Council approve a resolution making findings and a determination to authorize a Certificate of Tentative Cancellation for Agricultural Land Conservation Contract No. 6273.

EXECUTIVE SUMMARY
The applicant has submitted a petition (Attachment 2) to cancel Agricultural Land Conservation Contract No. 6273, for approximately 35.71 acres of land located near the southeast corner of Shaw and De Wolf Avenues (see Figure 1 below). The subject parcel is part of the Loma Vista Community Centers North and South Master Plan, which was approved by the City Council in 2009.

54 AGENDA ITEM NO. 8.

FIGURE 1
Project Location Map

BACKGROUND
Frank and Georgia W. Sorrenti are the owners of real property subject to Agricultural Land Conservation Contract No. 6273 and have petitioned the City of Clovis for cancellation of said contract in order to proceed with development.

The property subject to Agricultural Land Conservation Contract No. 6273 is located near the southeast corner of De Wolf and Shaw Avenues. As indicated above, the property is part of the Loma Vista Community Centers North and South Master Plan and currently zoned P -C-C (Planned Commercial Center), R-4 (High Density Residential) and P-F (Public Facility). In order to proceed with development of th is land, the City Council must approv e the removal of this parcel from the agricultural land conservation contract according to the requirements of the Williamson Act.

The cancellation process consists of the City Council conducting a public hearing, maki ng specific findings required by the Williamson Act, and setting a cancellation fee equal to 12 .5% of the land’s current fair market value. The cancellation fee is set by statute and cannot be changed or waived by the City for this proposed cancellation . Along with the payment of the cancellation fee, the City must also include a condition of approval requiring that the owner obtain permits for the alternative (non -Williamson Act) land use on the subject property (Attachment A of Attachment 1 ). After the public hearing is held and the conditions outlined have been approved, the City Council may issue a Certificate of Tentative Cancellation (Attachment 3).

Shaw Avenue
De Wolf Avenue
AC2022-001
55 AGENDA ITEM NO. 8.

As soon as the conditions are satisfied by the Landowner, a Certificate of Cancellation may be issued. The applicant must complete the conditions within one year of issuance of the Certificate of Tentative Cancellation.

Pursuant to Government Code Section 51283(a), the County Assessor performed an appraisal of the affected property and determined the 35.71-acre parcel’s current fair market value to be $6,900,000 ( Attachment 4). Based upon the assessment, the cancellation fee of 12 .5% is $862,500.

PROPOSAL AND ANALYSIS
Williamson Act Required Findings (Government Code Section 51282)

If the City Council wishes to proceed with the cancellation, it must, after receiving public testimony, approve a resolution making the following five findings:

1. A notice of nonrenewal has been served;

2. Cancellation is not likely to result in removal of adjacent land from agricultural use;

3. The alternative use is consistent with the City’s General Plan and Loma Vista Specific Plan;

4. Discontiguous patterns of urban development will not result; and

5. There is no proximate noncontracted land which is available and suitable f or the use proposed on the contracted land, or, development of the contracted land would provide more contiguous patterns of urban development than development of proximate noncontracted land.

Information in Support of the City’s Findings

As indicated ab ove, to cancel the contract, the City Council must make the findings required under Government Code Section 51282. The information in support of the required findings is discussed below.

1. Notice of nonrenewal has been prepared and is scheduled to be reco rded no later than December 16, 2022. Verification that the notice of nonrenewal as been recorded will be required before the Council considers the proposed cancellation.

2. Cancellation of the affected parcel will not result in subsequent removal of adjacent land from agricultural use. The property is surrounded by urban development or land planned for urban development by the Loma Vista Specific Plan.

3. The alternative use of the property is consistent with City’s General Plan and Loma Vista Specific Plan . The proposed alternative use is for commercial, retail, multi -family residential, public facility uses, which is consistent with the City’s General Plan and the Loma Vista Specific Plan.

56 AGENDA ITEM NO. 8.

4. Discontiguous patterns of urban dev elopment will not result. The subject parcel is surrounded by, and is contiguous to, existing and planned urban development.

Discontiguous patterns of development will not occur.

5. The subject parcel is surrounded by existing and planned urban development . The property provides for more contiguous patterns of urban development than development of proximate noncontract land. The cancellation will allow contiguous urban development consistent with the City’s General Plan and Loma Vista Specific Plan.

California Environmental Quality Act (CEQA)
The Project is in substantial conformance with the environmental analysis performed for Rezone 2008-007 and Site Plan Review 2008-010 (Community Centers North and South Master Plan).

No major revisions will be require d with the adopted Mitigated Negative Declaration to accommodate the proposed project, therefore, subject to CEQA Sections 15162 and 15182, no further environmental review is required for this project.

The City published notice of this public hearing in The Business Journal on Wednesday, December 7, 2022.

FISCAL IMPACT
None.

REASON FOR RECOMMENDATION
California Government Code Section 51200 et seq. designates the City as the administrative authority to respond to petitions for cancellation when made on land which is in the City’s jurisdiction.

In light of the above findings, this application for can cellation of an agricultural contract meets the requirements of the Williamson Act. Furthermore, the findings for cancellation, required by Government Code Section 51282, can be supported. Therefore, staff recommends that a Certificate of Tentative Cancellation be issued.

ACTIONS FOLLOWING APPROVAL

1. Property owner is required to pay the cancellation fee ( $862,500) directly to the County Treasurer, with evidence of such payment being certified to the City by the Treasurer.

2. Within 30 days of the Council dec ision, a notice of the decision will be published in the Business Journal in the form of a display ad, and the notice will be submitted to the Director of Conservation within 30 days of the decision.

3. A certificate of tentative cancellation will be recorded in the Fresno County recorder’s office.

4. Property owner must obtain approvals from the City for the alternative use (non-Williamson Act) of the property.

57 AGENDA ITEM NO. 8.

5. After notice from the Landowner that the cancellation fee has been paid and approvals for the alternative use of the property have been obtained, a Certificate of Cancellation will be prepared for the Mayor’s signature, recorded with the County Recorder, and a copy sent to the State Director of Conservation as required by Gov ernment Code Section 51283.4(b) .

Upon recordation, the cancellation becomes effective.

Prepared by: George González, Senior Planner

Reviewed by: City Manager JH
58 AGENDA ITEM NO. 8.

ATTACHMENT 1

RESOLUTION 22-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS MAKING FINDINGS

AND A DETERMINATION TO A PARTIAL CANCEL OF LAND CONSERVATION CONTRACT NO. 6273 AND FINDING THE PROJECT IN SUBSTANTIAL CONFORMANCE WITH THE ENVIRONMENTAL ANALYSIS PERFORMED FOR REZONE 2008-007 AND SITE PLAN REVIEW 2008-010 (COMMUNITY CENTERS NORTH AND SOUTH MASTER PLAN) PURSUANT TO CEQA SECTIONS 15162 AND 15182

WHEREAS, pursuant to the California Land Conservation Act of 1965 (the Williamson Act, Government Code section 51200 et seq.), the City of Clovis is the administrative authority to consider petitions for cancellation of land conservation contracts within the City’s jurisdiction; and

WHEREAS, Frank and Georgia W. Sorrenti, are the owners of real property who hold a portion of Land Conservation Contract No. 6273 and has petitioned the City of Clovis for cancellation of said contract in order to convert the agricultural use to urban use consistent with the City’s General Plan, Loma Vista Specific Plan and the Community Centers North and South Master Plan; and

WHEREAS, the owners petitioned the City for cancellation of that portion of Land Conservation Contract No. 6273 governing their property; and

WHEREAS, a description of the boundaries of the territory to be cancelled is set forth in Exhibit “A” attached hereto and by this reference incorporated herein; and

WHEREAS, the cancellation of the land conservation contract shall be subject to a condition requiring the payment of the cancellation fee ($862,500.00) equal to 12½% of the land’s assessed value ($6,900,000.00) directly to the County Treasurer. If the fee is not paid within one year of the issuance of the Certificate of Tentative Cancellation, the land’s value shall be reassessed; and

WHEREAS, the cance llation of the land conservation contract shall be subject to a condition requiring that the landowner obtain all permits necessary to commence the alternative land use project on the subject property; and

WHEREAS, the City published notice of the Publi c Hearing in the Fresno Business Journal, mailed public notices to all landowners (in accordance with Government Code Section 51284) with similar contracted property within a one -mile radius of said property boundaries ten days prior to the Public Hearing , and otherwise posted notice of the Public Hearing according to applicable law; and

59 AGENDA ITEM NO. 8.

WHEREAS, a duly noticed hearing was held on December 19, 2022; and

WHEREAS, the City Council has given careful consideration to the cancellation of that portion of Land Conservation Contract No. 6273 on December 19, 2022, and considered the CEQA analysis outlined in the staff report and elsewhere in the Administrative Record which determines that the Project is in substantial confo rmance with the environmental analysis performed for Rezone 2008 -007 and Site Plan Review 2008 -010 (Community Centers North and South Master Plan); and

WHEREAS, the City Council has reviewed and considered the entire Administrative Record relating to the Project, which is on file with the Department, and reviewed and considered those portions of the Administrative Record determined to be necessary to make an informed decision, including, but not necessarily limited to, the staff report, the written materials submitted with the request, and the verbal and written testimony and other evidence presented during the public hearing, and the conditions of approval attached as Attachment A to this Resolution, which are incorporated herein by this reference.

NOW, THEREFORE, BASED UPON THE ENTIRE RECORD OF THE
PROCEEDINGS, the City resolves and finds as follows:

1. Findings:

A. Notice of nonrenewal has been served:

A notice of nonrenewal has been served to the City by the property and said notice has been recorded by the Fresno County Recorder’s Office for the City.

B. Cancellation is not likely to result in removal of adjacent land from agricultural use:

The surrounding land uses are urban or planned for urban uses consistent with the City’s General Plan, Loma Vista Specific Plan and the Community Centers North and South Master Plan. Since the surrounding area is planned for urban development, cancellation will not result in the removal of adjacent land from agricultural use.

C. Alternative use is consistent with City’s General Plan:

The proposed alternative uses are for commercial, retail, multi-family residential, and public facility developments. These uses are consistent with the City’s General Plan, Loma Vista Specific Plan and the Community Centers North and South Master Plan.

60 AGENDA ITEM NO. 8.

D. Discontiguous patterns of urban development will not result:

The subject parcel is surrounded by existing and planned urban development. The property provides for more contiguous patterns of urban development tha n development of proximate noncontract land. The cancellation will allow contiguous urban development consistent with the City’s General Plan, Loma Vista Specific Plan and the Community Centers North and South Master Plan.

E. There is no proximate noncontracted land which is available and suitable for the use proposed on the contracted land ; or, development of the contracted land would provide more contiguous patterns of urban development than development of proximate noncontracted land.

The subject parcel is surrounded by existing and planned urban development. The property provides for more contiguous patterns of urban development than development of proximate noncontract land. The cancellation will allow contiguous urban development consistent with the City’s General Plan and Loma Vista Specific Plan.

2. Based on the findings described above, which are detailed in the December 19, 2022, staff report incorporated herein by reference, the entire Administrative Record in this proceeding, as well as the evidence and comments presented during the public hearing on December 19, 2022, the City Council hereby resolves as follows:

A. The City Council hereby approves AC2022-001, subject to the conditions of approval set forth in Attachment A of this Resolution.

B. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and to this end the City Council finds that the Project is in substantial conformance with the environmenta l analysis performed for Rezone 2008 -007 and Site Plan Review 2008 -010 (Community Centers North and South Master Plan). No major revisions will be required with the adopted Mitigated Negative Declaration to accommodate the proposed project, therefore, subj ect to CEQA Sections 15162 and 15182, no further environmental review is required for this project.

* * * * *

61 AGENDA ITEM NO. 8.

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on December 19, 2022, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED: December 19, 2022

______________________________ ______________________________ Mayor City Clerk

62 AGENDA ITEM NO. 8.

Attachment A

Conditions of Approval – AC2022-001

Planning Division Comments
(George González, Senior Planner - (559) 324-2383)

1. Landowner shall pay the cancellation fee ($862,500) equal to 12½% of the land’s assessed value ($6,900,000) directly to the County Treasurer. Unless the fee is paid, or a certificate of cancellation is of contract is issued within one year from the date of the valuation certified by the assessor the fee shall be recomputed as provided in Government Code Section 51283.4.

2. Issuance of a Certificate of Cancellation is contingent upon the La ndowner obtaining all permits necessary to commence the project.

63 AGENDA ITEM NO. 8.

T
O: George González , City of Clovis
F
ROM: Precision Civil Engineering
RE: Williamson Act Contract Cancelation – AC2022-001
Date: December 2, 2022
G
eorge,
P
lease accept this letter as written request for cancelation of the Williamson Act Contract on the property located at 352 0 Shaw Avenue (APN 555- 031-37). Should you have any questions or required additional information, please feel free to reach out.

S
incerely,
K
elsey George, Senior Planner
1234 O Street ∙ Downtown Fresno, CA 93721 ∙ Phone (559) 449-4500 ∙ Fax (559) 449-4515 ATTACHMENT 2
64 AGENDA ITEM NO. 8.

Findings for Williamson Act Contract Cancellation
Southeast of Shaw Avenue and De Wolf Avenue, City of Clovis Per Government Code Section 51282:
a. That the cancellation is consistent with the purposes of the Williamson Act.

The purpose of the Williamson Act is to restrict specific parcels to agricultural or related open space use.

The subject parcel (APN 555-031-37) is within the city of Clovis and is zoned and planned for urban use , including residential, commercial, and public facilities. Since the parcel is not designated for agricultural use, the cancellation is consistent with the purpose of the Williamson Act. b. That cancellation is in the public interest.

The parcel is within the city of Clovis and is zoned and planned for urban use. The cancellation application facilitates a mixed-use development, as intended in the city of Clovis General Plan. Thus, the cancellation is in the public interest.
c. That the cancellation is for land on which a notice of nonrenewal has been served pursuant to Section 51245.

A notice of non -renewal is required for the Williamson Act Cancellation and will be filed as specified by the city. The notarized non -renewal document will be returned to the city for recordation in order to continue processing of the cancellation of the subject parcel. d. That cancellation is not likely to result in the removal of adjacent lands from agricultural use.

The parcel currently contains three (3) structures and dirt roads, and the land is primarily operated as agricultural use. The parcel is surrounded by single-family residential use (west and north) and vacant or agricultural lands (north, east, and south ). The parcel and its surroundings are located within city limits and is zoned and planned for urban use. As such, the cancellati on is not likely to result in removal of adjacent lands from agricultural use.
e. That cancellation is for an alternative use which is consistent with the applicable provisions of the city or county general plan.

The city of Clovis General Plan identified Lom a Vista Urban Center, inclusive of the subject parcel, “to promote a high quality residential community focused around two community centers, a business campus, and the Reagan Educational Center.” The parcel is in the P-C-C Planned Commercial Center, R -4 H igh Density Multiple Family Residential, and P -F Public Facilities zoning district with a planned use for MU-V Mixed Use Village, VH Very High Density Residential, and P Public Facilities. The proposed commercial and residential mixed-use of the parcel, is consistent with current zone districts as well as the provisions of the General Plan and the Urban Center’s guiding plan – Loma Vista Community Center Master Plan. f. That cancellation will not result in discontiguous patterns of urban development.

The subject parcel is in the P -C-C Planned Commercial Center, R -4 High Density Multiple Family Residential, and P -F Public Facilities zoning district with a planned use for MU-V Mixed Use Village, VH Very High Density Reside ntial, and P Public Facilities . The parcel is within the city of Clovis and is 65 AGENDA ITEM NO. 8.
surrounded by planned urban uses , thus it would not result in discontiguous patterns of urban development.
g. That there is no proximate noncontracted land which is both available and suitable for the use to which it is proposed the contracted land be put, or, that development of the contracted land would provide more contiguous patters of urban development than development of proximate noncontracted land.

The parcel is zoned and pl anned for urban uses in the Loma Vista Urban Area. The parcel is surrounded by single-family residential use (west and north) and vacant lands (north, east, and south). The parcel and its surrounding areas are intended for urban development, per the city of Clovis General Plan Land Use Map (last modified on October 13 , 2017). The cancellation will facilitate the development of the parcel consistent with current zoning and planned land use.

Properties in the vicinity of the subject parcel are all noncontracted land. Lands that are not developed to its zoning potential include properties north, east, and west of the subject parcel. Regarding suitability for the proposed use, properties north and south of the subject parcel are ruled out since zoning does not allow the mixed-use development on those parcels. As such, only the properties east of the subject parcel are both available and suitable for the use to which it is proposed the contracted land be put. However, this property is already approved for development and is thus not a viable alternative.

However, the development of the subject parcel would provide more contiguous patterns of urban development than development of the land on its west. This is because urban development of the city of Clovis expands from west to east. Additionally, properties west of the subject parcel are developed with residential uses, thus the proposed development would be contiguous of existing development. 66 AGENDA ITEM NO. 8.

ATTACHMENT 3

CERTIFICATE OF TENTATIVE CANCELLATION

NOTICE IS HEREBY GIVEN THAT:

The City Council of the City of Clovis has, by Resolution No. 22-__, dated December 19, 2022, granted tentative approval to the petition presented by Precision Civil Engineering, Inc., for cancellation of Land Conservation Contract No. 6273, said contract having been recorded with the Fresno County Recorder’s Office as Instrument Number 297273, dated February 15, 1977.

This certificate applies to real property situated in the City of Clovis, County of Fresno, State of California, identified by Assessor’s Parcel Number 555-031-37 and more particularly described in the attached legal description (Exhibit “A”).

A Certificate of Cancellation of the above-described contract shall be issued by the City and recorded in the Official Records of the Office of the Recorder of the County of Fresno at such time as the following conditions and contingencies are satisfied:

1. The Landowner shall pay the cancellation fee ($862,500.00) equal to 12½% of the land’s assessed value ( $6,900,000.00) directly to the County Treasurer. Unless the fee is paid, or a certificate of cancellation is of contract is issued within one year from the date of the valuation certified by the assessor the fee shall be recomputed as provided in Government Code Section 51283.4.

2. Issuance of a Certificate of Cancellation is contingent upon the Landowner obtaining all permits necessary to commence the project.

IN WITNESS WHEREOF, I have unto this certificate set my hand and seal this _____day of __________________.

______________________________
Lynne Ashbeck, Mayor

67 AGENDA ITEM NO. 8.

EXHIBIT A

The land described herein is situated in the State of California, County of Fresno, City of Clovis, described as follows:

The Northwest quarter of the Northwest quarter of Section 13, Township 13 South, Range21 East, Mount Diablo Base and Meridian, accord ing to the United States Government Township Plat approved by the Surveyor General on July 15, 1854.

EXCEPTING THEREFROM the North 265 feet of the West 265 feet thereof.

ALSO EXCEPTING THEREFROM that portion of the said Northwest quarter of the Northwest quarter of Section 13, described as follows:

COMMENCING at the Southwest corner of the Northwest quarter of the Northwest quarter of said Section 13, thence South 89° 56' 55" East, along the South line of the Northwest quarter of the Northwest quarter of said Section 13, a distance of 20.00 feet to t he TRUE POINT OF BEGINNING; Thence North 00° 04' 59" West, parallel with and 20.00 feet East of the West line of the Northwest quarter of the Northwest quarter of said Section 13, a distance of 375.04 feet, thence North 89° 55' 01" East, a distance of 1.37 feet, thence South 010 18' 59" East, a distance of 375.15 feet to a point on the South line of the Northwest quarter of the Northwest quarter of said Section 13, thence North 89° 56' 55" West, along the South line of the Northwest quarter of the Northwest quarter of said Section 13, a distance of 9.45 feet to the true point of beginning.

ALSO EXCEPTING THEREFROM that portion of the Northwest Quarter of the Northwest Quarter of Section 13, Township 13 South, Range 21 East, Mount Diablo Base and Meridian, described as follows:

BEGINNING at the intersection of the East line of that parcel deeded to the County of Fresno for a public road as per deed recorded July 22, 1904 in Book 219, page 375 as Instrument No. 11851 of Deeds, Fresno County Records and the Sou th line of the North 265.00 feet of said Northwest Quarter, thence South 89° 55' 15” East, along the South line of the North 265.00 feet of said Northwest Quarter, a distance of 17.00 feet, thence South 0o 04’ 59" East, parallel with and 17.00 feet East of the East line of said parcel deeded to the County of Fresno, a distance of 1060.25 feet to the intersection with the South line of the Northwest Quarter of said Northwest Quarter, thence North 890 56’ 55” West, along the South line of the Northwest Quarte r of said Northwest Quarter, a distance of 7.55 feet, thence North 1' 18’ 59" West, a distance of 375.15 feet, thence South 89° 55’ 01" West, a distance of 1.37 feet to the intersection with the East line of said parcel deeded to the County of Fresno, thence North 0° 04’ 59” West, along the East line of said parcel deeded to the County of Fresno, a distance of 685.22 feet to the Point of Beginning.

ALSO EXCEPTING THEREFROM the North 55 feet thereof.

68 AGENDA ITEM NO. 8.

Attachment 4
69 AGENDA ITEM NO. 8.
70 AGENDA ITEM NO. 8.
71 AGENDA ITEM NO. 8.

TO: Mayor and City Council
FROM: Finance Department
DATE: December 19, 2022
SUBJECT: Receive and File - Finance Department Update.

Staff: Jay Schengel, Finance Director
Recommendation: Receive and File
ATTACHMENTS: 1. None.

Finance Director Jay Schengel will provide a verbal presentation on this item.

Please direct questions to the City Manager’s office at 559-324-2060. 72 AGENDA ITEM NO. 9.

TO: Mayor and City Council
FROM: Finance Department
DATE: December 19, 2022
SUBJECT: Consider Approval - Res 22 -___, Final Amendments to the 2021 -22 Budget in conformance with the Budget Ordinance; and Receive and File – Year-end report for all funds as of June 30, 2022.

Staff: Jay Schengel, Finance Director
Recommendation: Approve and Receive and File
ATTACHMENTS:

1. Res. 22 -___, Final Amendments to the 2021 -22 Budget in conformance with the Budget Ordinance.

CONFLICT OF INTEREST
None.

RECOMMENDATION
That the Council approve Resolution 22 -___, final amendments to the 2021 -22 budget in conformance with the budget ordinance and receive and file the year-end report for all funds as of June 30, 2022.

EXECUTIVE SUMMARY
Each fiscal year, after the year end closing entries are completed, an analysis is prepared comparing actual fund balances against those estimated during the annual budget process and presented to Council for adoption during the June 2022 budget hearings. The following is the summary of the actual results compared to the estimates for the 2021-22 fiscal year end.

BACKGROUND
During the preparation of the 2022-23 budget, estimates were made for 2021-22 revenues and expenditures to establish the estimated June 30, 2022, fund balances that are expected to be available for appropriation in the 2022 -23 fiscal year. This report compares the variances between actual revenues and expenditures versus the estimates established during the preparation of the 2022 -23 budget. All departments were within or close to their estimates established during the budget preparation.

73 AGENDA ITEM NO. 10.

The basis for this report is different from the information presented in the Annual Comprehensive Financial Report (ACFR), which compares actual revenues earned and actual expenditures incurred against the Council approved budget, as amended from time to time during the year.

The City’s General Fund presented on page 34 and 35 of the ACFR in cludes the Landscape Maintenance Fund, Parking and Business Improvement Fund, and Supplemental Law Enforcement Fund. Those activities have been excluded and are not part of this report related to the General Fund.

General Fund

The “available for appropriation” General Fund balance on June 30, 2022, is $8.4 million, which is $3.0 million more than projected during the preparation of the 2022 -23 proposed budget.

Revenues were approximately $1.7 million more than projected and expe nditures were approximately $1.3 million less than projected during the preparation of the 2022-23 budget.

Revenues in the General Fund were estimated at $102.1 million and ended the year at $103.8 million which is $1.7 million, or 2% more than projecte d at the time of budget preparation. The increase was primarily due to sales tax that benefited from the accelerated increase in online sales due to consumers changing their purchasing preference after the pandemic to online and the impact of online sales tax to local jurisdictions after the passage of AB-147, the Marketplace Facilitator Act. Sales tax was estimated during the budget preparation at $30.0 million and actual receipts came in at $31.1 million. Property tax came in $0.4 million more than esti mated remaining a steady source of discretionary revenue. The remaining $0.2 million received is a combination of revenues received such as business licenses, recreational sports, and emergency responses.

Expenditures in the General Fund, when considering encumbrances and reappropriations, were estimated at $86.7 million and ended the year at $85.4 million which is $1.3 million or 1% lower than projected at the time of budget preparation. Most of the savings was achieved in the Fire Department at $0.4 million, the City Attorney at $0.4 million, and the Police Department at $0.3 million. Savings in the Fire Department and Police Department was mainly due to salary savings and savings in professional services and supplies. Savings in the City Attorney Department was due to savings in professional services. The remaining $0.2 million in savings from the other General Fund departments were due to savings in professional services and other services. The expenditure savings in the General Fund is mostly related to one-time events and will not result in continued annual savings.

Under current Council policy, the emergency reserve was set at a minimum level with the goal to increase the amount as soon as possible. The City’s General Fund Emergency Reserve is set at a minimum of 15% of budgeted expenditures, with the goal to reach a more prudent reserve of 25% of budgeted expenditures. The emergency reserve was increased from $16.4 million to $19.4 million, or 22% of 2021 -22 budgeted expenditures on June 30, 2022, to meet the current goal of increasing the reserve to 25%.

74 AGENDA ITEM NO. 10.

Enterprise Funds

This analysis is conducted for the enterprise operating funds and is prepared on a budgetary basis including encumbrances and reappropriations.

The Community Sanitation Fund, including Refuse and Street Cleaning activities, ended the 2021-22 fiscal year with an available balance of $11.4 million. This balance is $0.5 million more than originally anticipated mainly due to deferred capital expenditures.

The Sewer Enterpri se Fund ended the 2021 -22 fiscal year with an available balance of $27.6 million which was $2.6 million more than anticipated due to deferred capital projects. Of the available balance, $10.0 million of rate stabilization funds are included to assist with meeting bond covenants if necessary.

The Water Enterprise Fund finished the 2021-22 fiscal year with an ending available balance of $21.3 million, which was $0.5 million more than anticipated. The difference is due to savings in expenditures in salaries, services, supplies and equipment.

The Transit Enterprise Fund ended the 2021 -22 fiscal year with an available balance of $0.1 million. This balance is close to what was originally anticipated during budget preparation.

The Planning and Development Services Enterprise Fund ended the 2021-22 fiscal year with an available balance of $10.0 million which is close to what was anticipated because of slightly greater than expected revenues offset by a small increase in expenditures mainly in services, materials, and supplies.

Other Operating Funds

The Housing and Community Development Fund (HCD) ended the 2021 -22 fiscal year with a $1.5 million balance which was $0.4 million more than anticipated mainly due a deferral of project expenditures.

The internal service funds, which provide services primarily to other City operations and funds, ended the 2021-22 fiscal year as reported below:

 The Liability and Property Fund ended with a balance of $2 million, which is close to what was projected.

 The Fleet Maintenance Fund ended with a balance of $21.9 million which is $6.2 million more than originally projected. The increase is mainly due to a one-time transfer from the General Fund to fund fleet replacement projects plus deferred equipment purchases due to supply issues.

 The Employee Benefits Fund ended with a balance of $11.8 million which is $1.2 million more than what was projected mainly due to retirement and workers compensation expenditure savings.
75 AGENDA ITEM NO. 10.
 The General Government Service Fund ended with a balance of $13.8 million which is $6.3 million more than anticipated. The variance is due to deferred capital projects and additional one-time transfers. Many of these projects were not able to be completed due to supply issues.

Budget Resolution

The report is normally for information only; however, this year there is a need to make final budget adjustments to conform to the requirements of the Budget Ordinance. As indicated earlier, the above analysis was a comparison of actual results against the “Estimate t o Close Budget” that was developed in conjunction with preparation of the 2022-23 budget. The following action contained in the attached Resolution is needed to bring the working budget into legal compliance.

The amounts listed below were analyzed against the Council approved budget as amended. All these overages were taken into account in the “Estimate to Close” budget.

Fund
General – Fire Department ................................ $158,000

The Fire Department budget exceeded the budget due to out of county emergency response overtime expenses.

The amounts listed below were analyzed against the Council approved budget as amended.

The differences in these transfers were analyzed and are appropriate as described.

Additional
Amount From To Purpose

$ 10,000 General Fund Planning & Dev Svs Various projects

1,000,000 General Fund General Govt Svs Fire Station #2 const. costs

400,000 General Fund General Govt Svs Various projects

32,000 General Govt Svs Fleet Public Safety purchases

The budget amendment resolution includes the schedule of transfers to allow for transfers described above to be brought into budgetary compliance.

FISCAL IMPACT
The General Fund budget will be increased by $158,000 for the Fire Department. The transfer amount of $1,442,000 will bring the City into compliance with the adopted budget.

REASON FOR RECOMMENDATION
The budget report is a status report, and no action is requ ired; however, action is required by the Council to approve the Resolution amending the 2021 -22 budget for expenditures and transfers.
76 AGENDA ITEM NO. 10.

ACTIONS FOLLOWING APPROVAL
The report will be filed and the budget amendment for expenditures and transfers will be posted.

Prepared by: Gina Daniels, Assistant Finance Director

Reviewed by: City Manager JH
77 AGENDA ITEM NO. 10.

ATTACHMENT 1
RESOLUTION 22-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS
APPROVING FINAL AMENDMENTS TO THE FISCAL YEAR 2021-22 ANNUAL BUDGET

AMENDING THE SCHEDULE OF TRANSFERS AND EXPENDITURES BY DEPARTMENT

AND ASSIGNING GENERAL FUND UNALLOCATED FUND BALANCE TO THE

CONTINGENCY RESERVE

WHEREAS, the City Council adopted the fiscal year 2021 -22 Annual Budget on June 14, 2021; and

WHEREAS, the annual audit has been completed and an analysis has been prepared of the actual results of the 2021-22 fiscal year end and there is one department that exceeded the amended budget for 2021-22; and

WHEREAS, the adjustments are for unanticipated expenditures in that department and the City Council finds that it is necessary to appropriate the funds for the budget amendments; and

WHEREAS, the working budget included transfers for loans from the sewer developer fund to the sewer service fund, from the sewer service fund to the sewer capital fund a nd from the general government services fund to the water services fund to cover debt service costs as sewer service fees and water developer fees exceeded estimates and those transfers may be increased and reversed respectively; and

WHEREAS, the Council finds it necessary to transfer funds to General Government Services for various projects including construction costs for Fire Station #2, to Fleet for various public safety purchases and to Planning and Development Services for operations; and

WHEREAS, the changes to the budgets for the General Fund are necessary to be in conformance with the City’s Budget Ordinance; and

WHEREAS, there is additional revenue or available fund balance to make the appropriations and transfers.

NOW, THEREFORE , BE I T RESO LVED, the City of Clovis approves the budget amendments as shown in the “Summary of Expenditures by Department”, “Summary of Expenditures by Fund”, and “Summary of Transfers” as attached as Attachment A.

* * * * *

78 AGENDA ITEM NO. 10.

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on December 19, 2022, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

______________________________ ______________________________ Mayor City Clerk

79 AGENDA ITEM NO. 10.

ATTACHMENT A

SUMMARY OF EXPENDITURES BY DEPARTMENT 2021-22

Department
Fire Department $ 158,000
Total $ 158,000

SUMMARY OF EXPENDITURES BY FUND 2021-22

Fund
General $ 158,000
Total $ 158,000

SUMMARY OF TRANSFERS BY FUND 2021-22

Transfer In

Fund
General Government Services $ 1,400,000
Planning and Development Services 10,000
Fleet Maintenance 32,000
Total $ 1,442,000

Transfer Out

Fund
General Fund $ 1,442,000
Total $ 1,442,000
80 AGENDA ITEM NO. 10.

TO: Mayor and City Council
FROM: Finance Department
DATE: December 19, 2022
SUBJECT: Consider Approval - 2021-22 Annual Comprehensive Financial Report.

Staff: Jay Schengel, Finance Director
Recommendation: Approve

ATTACHMENTS: 1. 2021-22 Annual Comprehensive Financial Report (ACFR)

2. Statement on Auditing Standards Letter

CONFLICT OF INTEREST
None.

RECOMMENDATION
For the Council approve the 2021-22 Annual Comprehensive Financial Report (ACFR).

EXECUTIVE SUMMARY
Financial reports are a primary objective source of information to most persons concerned about a government's financial condition. Taxpayers are interested in the amount of revenues and expenditures. Investors and bond-rating agencies are interested in the ability of a jurisdiction to meet its debt obligations. For the City Council, the financial reports provide an opportunity to determine compliance with budgetary appropri ations as well as the status of the government's assets and liabilities and the financial condition of the City.

The City of Clovis' financial report was audited and received an unqualified opinion from The Pun Group, LLP, a firm of independent, licensed certified public accountants, which means the financial statements for the fiscal year ending June 30, 2022, are free of material misstatement and are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP).

BACKGROUND
Every year, the City undergoes an annual financial audit. This audit includes a review of the City’s financial records, internal controls, management of assets and review of major account balances and large dollar activities to validate year-end balances. From this review, the Finance Department prepares the Annual Comprehensive Financial Report (ACFR). The City’s auditors 81 AGENDA ITEM NO. 11.
review this document to verify that it is in conformance with the financial reporting model as prescribed by the Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments.

GASB conformance – The ACFR adheres to the guidelines of all GASB statements in effect at the time of issuance. The layout of the ACFR follows guidelines established by the Government Finance Officers Association (GFOA). Four major sections are presented:

 Introductory Section – This section includes the Letter of Transmittal, which discusses the profile of the City and factors affecting the City’s financial condition along with the City’s long -term policies and plans. Additionally, this section includes the GFOA Certificate of Achievement for Excellence in Financial Reporting for the prior fiscal year, the City’s Organ izational Chart, and a listing of the City of Clovis’ principal officials.

 Financial Section – This section includes the Independent Auditor’s Report, Management’s Discussion and Analysis, the audited financial statements, the notes to the financial statements and additional required supplementary information.

 Statistical Section – This section includes supplemental data not evident in the Financial Section, such as financial trend information and demographic information.

 Single Audit Section – This compliance-based audit is required by law for government entities with federal expenditures in excess of $750,000. This audit includes an audit of both the financial statements and the federal awards. This section includes the Independent Auditor’s Report on internal controls and compliance for each major program along with the Schedule of Expenditures of Federal Awards and notes to those expenditures. Finally, the Appropriations Limit Schedule and corresponding notes complete the section.

Two Kinds of Financial Statements - Two distinct forms of information are provided in the basic financial statements:

Government-wide statements. These are consolidated financial statements for all of a city’s operations on a full accrual basis of accounting. They are not presented on a fund basis; instead, fiscal operations are organized into two major activities: governmental and business- type. They will have a “net position” focus and exclude interfund transactions (such as internal service funds) and fiduciary funds. Expenses (which may include allocated “indirect costs ”) are shown both gross and net of related revenues such as fees and grants (see page 31).

Fund statements. In meeting stewardship and accountability concerns, financial statements are also presented on a fund basis - but not using the same basis of accounting as the government-wide statements for governmental funds (see pages 32-43).

82 AGENDA ITEM NO. 11.

Because there are differences in the basis of accounting and scope of transactions, there are significant differences between these two financial statements - but they are not obvious. For this reason, a detailed reconciliation between them is required as part of the audited basic financial statements (see page 34).

Basic Financial Statements - The ACFR includes all funds of the City. In addition to the City's funds, the Clovis Successor Agency, a private purpose trust fund separate from the City, is reported in the ACFR.

The City's auditors, The Pun Group LLP, have audited the figures submitted in the ACFR and their opinion letter is included on pages 13 - 15. The auditors have prepared the Statement on Auditing Standards (SAS114) letter (Attachment 2) that was submitted subsequent to the completion of the financial report.

This is the thirty-fourth year that the City's Finance Department has prepared the Annual Comprehensive Financial Report. The previous reports prepared by the Finance Department (1987-88 through 2020-21) were submitted to the Government Finance Officers Association (GFOA) for consideration of the GFOA Certificate of Achievement Program. The City subsequently received the Certificate of Achievement for Excellence in Financial Reporting presented by the GFOA for each of these years. We believe the report for 2021-22 continues to meet the requirements of the Certificate of Achievement Program and will be submitted to GFOA for review.

FISCAL IMPACT
This information provided in the Annual Comprehensive Financial Report is important to the Council, public, and financial institutions to affirm that the City's financial activity is accounted for in accordance with generally accepted accounting principles (GAAP). In addition, the ACFR includes all necessary disclosures to provide an understanding of the City's financial activities and fiscal condition.

REASON FOR RECOMMENDATION
The Annual Comprehensive Financial Report is formally being submitted to the Council.

ACTIONS FOLLOWING APPROVAL
After receipt by the Council, the ACFR will be distributed to interested parties, other agencies, financial institutions, bond-rating services, and copies will be made available for public review.

In addition, the ACFR will be submitted to the Government Finance Officers Association (GFOA) for consideration of the GFOA Certificate of Achievement Program.

Prepared by: Gina Daniels, Assistant Finance Director

Reviewed by: City Manager JH

83 AGENDA ITEM NO. 11.

CITY OF
C L O V I S

CALIFORNIA

Annual
Comprehensive
Financial
Report
For the Fiscal Year ended
June 30, 2022
Attachment 1
84 AGENDA ITEM NO. 11.

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2022

JOSE FLORES, MAYOR

LYNNE ASHBECK, MAYOR PRO-TEM

DREW BESSINGER, COUNCILMEMBER

VONG MOUANOUTOUA, COUNCILMEMBER

ROBERT WHALEN, COUNCILMEMBER

JOHN HOLT, CITY MANAGER

CITY OF CLOVIS

CALIFORNIA
Prepared by City of Clovis Finance Department
Jay Schengel, Finance Director
85 AGENDA ITEM NO. 11.

CITY OF CLOVIS

TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Page

INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal .............................................................................................................................................. 3 GFOA Certificate of Achievement ......................................................................................................................... 8 Organizational Chart ......................................................................................................... .................................... 9 List of Principal Officials ...................................................................................................................................... 10

FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................. ............................ 13 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ........................... 16 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position................................................................................................... ...................... 30 Statement of Activities .................................................................................................... .......................... 31 Fund Financial Statements:

Balance Sheet-Governmental Funds ........................................................................................... ............ 32 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds ............... 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balance of Governmental Funds to the Statement of Activities ............................................ 34 Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual:

General
Fund ...................................................................................................................................... 35 Statement of Net Position-Proprietary Funds ........................................................................................... 36 Statement of Revenues, Expenses and Changes in Net Position-Proprietary Funds.............................. 38 Statement of Cash Flows-Proprietary Funds ........................................................................................... 40 Statement of Fiduciary Net Position-Fiduciary Funds .............................................................................. 42 Statement of Changes in Fiduciary Net Position ...................................................................................... 43 Notes to Financial Statements ......................................................................................................................... 44 Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios ............................................................... 80 Schedule of Pension Contributions ................................................................................................................ 84 Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet-Nonmajor Governmental Funds .......................................................................... 88 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances-Nonmajor Governmental Funds ........................................................................ 90 Schedules of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual:

Local
Transportation Capital Projects Fund ........................................................................................ 92 Off
Highway Use Special Revenue Fund ........................................................................................... 93 Housing & Community Development Special Revenue Fund ............................................................ 94 Community Housing District 2020-1 Special Revenue Fund .............................................................. 95 1976 Fire and Sewer Debt Service Fund ............................................................................................ 96 Parks and Recreation Capital Projects Fund ...................................................................................... 97 Refuse
Equipment Capital Projects Fund ........................................................................................... 98 Combining Statement of Net Position-Internal Service Funds ..................................................................... 100 Combining Statement of Revenues, Expenses and
Changes in Fund Net Position-Internal Service Funds .......................................................................... 101 iii
86 AGENDA ITEM NO. 11.

CITY OF CLOVIS

TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Page
FINANCIAL SECTION (Continued)
Combining Statement of Cash Flows-Internal Service Funds ..................................................................... 102 Combining Statement of Fiduciary Net Position
.......................................................................................... 104 Combining Statement of Changes in Assets and Liabilities- Custodial Funds ............................................ 105 STATISTICAL SECTION (Unaudited)
Net Position by Component .............................................................................................................................. 109 Changes in Net Position .................................................................................................................................... 110 General Government Revenues by Source ...................................................................................................... 112 General Government Expenditures by Function ............................................................................................... 113 Changes in Fund Balances of Governmental Funds ........................................................................................ 114 Fund Balances of Governmental Funds ............................................................................................................ 116 Assessed and Estimated Actual Value of Property ........................................................................................... 117 Property Tax Rates-Direct and Overlapping Government ................................................................................ 118 Principal Property Tax Payers ........................................................................................................................... 119 Property Tax Levies and Collections ................................................................................................................. 120 Ratios of Outstanding Debt by Type ................................................................................................................. 121 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita ........................................................................................ 122 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt ............................................ 123 Computation of Direct and Overlapping Bonded Debt ...................................................................................... 124 Computation of Legal Debt Margin .................................................................................................................... 125 Revenue Bond Coverage .................................................................................................................................. 126 Demographic Statistics ....................................................................................................... .............................. 127 Principal Employers .......................................................................................................... ................................ 128 Full-Time City Employees ................................................................................................................................. 129 Capital Asset Statistics by Function .................................................................................................................. 130 Operating Indicators by Function ...................................................................................................................... 131 Building Permit Valuations ................................................................................................... ............................. 132 Miscellaneous Statistics ..................................................................................................... ............................... 133

SINGLE AUDIT SECTION
Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ......................................................................................... ............ 137 Independent Auditors' Report on Compliance with Requirements that Could have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with Federal Uniform Guidance ...................................................................................... 139 Schedule of Expenditures of Federal Awards ................................................................................................... 142 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 143 Schedule of Findings and Questioned Costs .................................................................................................... 144

LOCAL TRANSPORTATION FUND SECTION
Independent Auditors' Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of the Basic Financial Statements in Relation to the Local Transportation Purpose Funds Performed in Accordance with Government Auditing Standards ....................................................................................................... 149

APPROPRIATION LIMIT SECTION
Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit….….. ................................................................................................................................................... 151 Appropriations Limit Schedule .......................................................................................................................... 153 Notes to Appropriations Limit Schedule ............................................................................................................ 154 iv
87 AGENDA ITEM NO. 11.

I
N
T
R
O
D
U
C
T
O
R
Y
S
E
C
T
I
O
N
88 AGENDA ITEM NO. 11.

November 14, 2022
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Clovis:

It is with pleasure that I present to you the City of Clovis A nnual Comprehensive Financial Report (ACFR). This report has been formatted to comply with the financ ial reporting model as prescribed by the Governmental Accounti ng Standards Board (GASB). These statements have been audited in accordance with Gener ally Accepted Auditing S tandards (GAAS) by a firm of licensed certified public accountants as required by State law. Pur suant to that requirement, we hereby issue the ACFR of t he City of Clovis of the fiscal year ended J une 30, 2022.

This report consists of management’s representations concerning the financ es of the City of Clovis. Consequently, managem ent ass umes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management of the City of Clov is has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient relia ble information for the preparation of the City of Clovis’ financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh thei r benefits, the City of Clovis’ comprehensive fr amework of inter nal controls has been designed to provide reasonable rather than absolute assurance t hat the financial statem ents will be free from material misstatements. As ma nagement, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Clovis’ financial statements have been audited by Th e Pun Group LLP. The goal of the independent audit was to provide reasonabl e assurance that the financial statements of the City of Clovis for t he fiscal year ended June 30, 2 022, are free of material misstatement. The independent audit involv ed ex amining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates m ade by management; and evaluating the ov erall financial statement presentation. The independent auditor concluded, based upon the audit, that there was reasonabl e basis for rendering an unmodified op inion that the City of Clovis’ financial statements for the fi scal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

City Manager 559.324. 2060 • Finance 559.324. 2130 • Fire 559 .324.2200 • General Services 5 59.324.2060 Planning & Development Services 5 59.324.2340 • Police 559.324.2400 • Public Utilities 559.324. 2600 • TTY-711 www.cityofclovis.com
89 AGENDA ITEM NO. 11.

GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Clovi s’ MD&A can be found immediately following the report of the independent auditors.

Profile of the Government
The City of Clovis, incorporated in 1912, as a general law City of the State of Ca lifornia, is located near the middle of t he state in the San Joaquin Vall ey. The Central Valley is considered to be a national and world leader in the agricultura l industry. The City of Clov is
currently occupies over 25 square miles and serves a population of 123,665.

The City of Clovis operates under the council-m anager form of governm ent. Policy-making and legislative authority are vested in a govern ing council consisting of the mayor and four other members. The council is elected on a non-partisan bas is. Council members serve four-year staggered terms, with two council me mbers elected in one election and three elected in another election, sepa rated by two years. The mayo r is selected from among the council members by the council members and serv es a two-year term. All five members of the governing board are elected at large. The council is re sponsible, among other things, for passing ordinances, adopting the budget, appoint ing committees, and hiring the City’s manager and attorney. The City manager is responsible for carrying out the policies and ordinances of the governing council, for ov erseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City of Clovis provides a full range of serv ices, including police and fire protection; the construction, maintenance, and cleaning of str eets and other infrastructure; planning and development services; water service; refuse collection, disposal, and recycling services; sewer service; storm drainage; tr ansit services; recreation activities and cultural events; and general administration.

The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit requests for appropriations to the City manager during the second week of March eac h year. The City manager uses these requests along with input from the council to develop a proposed budget. By the second Monday in May the proposed budget is presented to the City council for review. The council is required to hold public hear ings on the proposed budget and to adopt a final budget by no later than June 30, the close of the City of Clovis’ fiscal year. The appropriated budget is prepared by fund and department. The City manager may make transfers of appropriations between departments within a specific fund of up to $5,000 and up to $2,500 from reserves.

Transfers in excess of those amounts require council action. Budget-t o-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Fo r the general fund, the budget-t o-actual comparison is presented on page 35 as part of the basic financial statements. For all other governmental funds with appropriated annual budgets, other than the general f und, this comparison is presented in the governmental fund subsection of this report, which starts on page 88. 4 90
AGENDA ITEM NO. 11.

Factors Affecting Financial Condition
The information presented in the financial stat ements is perhaps best understood when it is considered from the broader pers pective of the specific environment within which the City of Clovis operates.

Local economy. The City has enjoyed higher than aver age retail sales when compared to other cities and the state, and significantly better occupancy at hotels than both forecasted and experienced elsewhere. Sales taxes had la r
ge increases from budgeted projections that
were not expected due the accelerated pace of online sales in response to the pandemic.

Residential building activity is approximately at the 10-year average. In June of 2022 the City’s unemployment decreased to 3.4%, which was lower than the Fresno County rate of

5.7%, the State of California average of 4.0%, and less than the national average of 3.8%.

The City is seeing demand for retail space as a closed Pier 1 store was demolished for a new restaurant and previously vacant big stores have found success with national brands such as Hobby Lobby, At Home, and tenant improvem ents currently underway for Nordstrom Rack and a second Burlington store in recently vacated space. In addition, one hotel was completed and one more is under construction. Th is City has enjoyed a significant increase in hotel room development with higher than average occ upancies and corresponding growth in occupancy tax revenues. Clovis Community Hospital completed construction on another bed tower building, additional m edical offices and a heart and lung institute. This expansion continues to be one of the bigges t job creation projects in Fres no County in recent years .

Also, California Health Sciences
University has welcomed its third class of medical doctoral students near the hospital. The City is seeing a boost in office and industr ial development
with Cabinet Connections, a cabinet manufacturer, completing its first year of operations and increasing employment, along with many other small professional offices, such as an engineering consulting firm and industrial user s developing in the City’s business parks. The County of Fresno has moved over 2,000 employees into the City of Clovis including converting a vacant Costco store into class A office space.

The expansion to the Dry Creek Industrial Pa rk added 44 lots on 30 acres bringing the total park to approximately 64 lots
on 60 acres. De mand has been high for the space in the park by professional and industrial us ers and is expected to add to employment growth in the City as buildings are now underway with many comple ted. The California Health Sc iences
University opened its permanent campus at t he Ci
ty’s Central Valley Research and
Technology Park with plans for 2,000 students and several hundred employees. Currently, the university has nearly 400 st udents and over 100 staff. The uni versity will offer additional
areas of discipline as it expands . The City sold 13 acres to an industrial developer and the developer has receiv
ed entitlements to construct approximately 400,000 square feet of space while another industrial developer has received building permits to c onstruct 400,000 square feet of industrial space in the Clovis Industrial Park.

The City of Clovis is part of t he Fresno/Clovis Metropolitan Area. This includes the City of
Clovis, City of Fresno and
the developed areas of the County of Fresno. The population of Fresno County is
1,011,273 as of January 1, 2022. The City's population of 123,665, experienced a 1.5% growth in 2022 compared to a negative .3% growth rate in the State and a .2%
growth rate in the County. There are approximately 429,000 jobs in Fresno County. The City of Clovis has 56,400 employed out of a total labor force of 58,400 with
many Clovis residents employed outside of the City limits. 5 91
AGENDA ITEM NO. 11.

Major employers include newly developed C abinet Connections factory with nearly 200 employees, Costco with over 400 employees, Clovis Community Hospit al with over 3,000 employees,
Wawona Frozen Foods with over 500 employees, Anlin Industries with over 500
employees, the County of Fresno with over 1,400 employees, and the largest employer, Clov
is Unified School District
with over 5,100 employees. Of the approximately 35,000 total jobs in Clovis, 13,679 jobs are generated by the City’s top ten employers.

Long-term financial
planning. As part of the City of Clovis l and use planning process, the City’s completed General Plan is at the top of th e City’s land us e regulation hierarchy. It is
the foundation for most of the Council’s b
udgeting decisions in terms of capital facilities,
staffing, programs, utility infrastructure, and levels of service; it establishes a land use pattern for lands beyond the City limit; it provides the vision and guidance for capital improvements and the development of City infras tructure; and it is used to cr eate development impact fees and provides the basis for environmental analysis of the growth of th e City. The plan is intended to guide development for a period of ten years and will be the basis of the City’s

annual 5 year operating and capital forecast.

Part of the previous General Plan was the construction of a wa stewater treatment plant to serve the needs of the new growth area. The plant is expected to accommodate growth through 2033 when construction of phase two of the facility is anticipated. The wastewater treatment plant creates approximately 2.8 million gallons of dis infected recycled water each
day and distributes this water through a “pur ple pipe” distribution system for landscape irrigation throughout
the east side of the City. The reuse of this water will help conserve and manage a limited water supply.

Also, to finance current growth, the City has in place a variety of user and developer
fees to
pay for streets, parks, water wells and lines, and sewer lines. The City reviews these fees on an annual basis to
assure that the fee structure is in line with the cost of construction. The Water and Sewer Funds
have approved annual increases of 3% into the future if necessary.

The Community Sanitation Fund
has approved annual increases of 4% into the future if
needed. For fiscal year 2021/22, the City implemented a 3% increase in water and sewer rates, a 4% increase in recycling and green-waste rates and a 3% increase in refuse and disposal rates. The Sewer Fund bond surcharge of $7.30 was fully rebated for the fiscal year.

Structurally Balanced Budget Policy. Prior to the economic recession, in fiscal
year 2006/07, the City
Council utilized the emergency reserve when budgetary
demand for services exceeded available resources. However, with a decline in building activity beginning in the fall
of 2007, the City Council acted quickly to cut costs and services to ensure a balanced budget. Although it was necessary in 2007/08 to utilize additional funds from
the emergency reserve, the efforts of the Council to develop a “structurally balanced budget” has paid off and the reserve has been rebuilt from 5.5% of expenditures in 2007/08 to 22.0% of the 2022/23 general fund budgeted expenditures.

The Council is determined to maintain a structurally balanced budget where current estimated expenditures are within projected current revenues in order to provide budgetary stability for all operating budgets.
6 92
AGENDA ITEM NO. 11.

Assigned for Emergencies. The City currently has a policy to assign a portion of its fund balance for emergencies. These emergencies can range from major catastrophic incidents to significant economic downturns. The City Counc il annually considers an increase in the fund balance assigned for emergencies whenever there is unexpected or one-time revenue or expenditure savings are realized. The use of the assigned fund balance must be approved by 4/5ths of the Council.

Awards and Acknowledgements

The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to t he City of Clovis for its Comprehensive Annual Financial Report for the fiscal year ended J une 30, 2021. This was the thirty third consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, t he City published an easily readable and efficiently organized Comprehensive Annual Financial Report. This report satisfied both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a per iod of one year only. We believe that our current ACFR continues to meet the Certific ate of Achievement Pr ogram requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document dated July 1, 2022. In order to qualify for the Distinguished Budget Presentation Award, the governments’ budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.

The preparation of this report has been accomplished with the efficient and dedicated service of the City’s Finance Department. I would like to express my appreciation to everyone who assisted in its preparat ion, especially, Gina Daniels, Jeff Blanks, Susan Evans, Jose Reynoso, Jose Cortez and Ran Chan.

Respectfully submitted,

Jay Schengel, CPA
Finance Director
7 93
AGENDA ITEM NO. 11.

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clovis
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
8 94
AGENDA ITEM NO. 11.

CITIZENS
OF
CLOVIS
MAYOR
AND

CITY COUNCIL

CITY MANAGER

ASSISTANT CITY MANAGER

CITY CLERK

CITY ATTORNEY
Planning and Development Services
Department
Planning, Enterprise Fund
Building, Enterprise Fund
Engineering Services, Enterprise Fund
Community Investment Program, Capital
Project Fund

PLANNING COMMISSION

PERSONNEL COMMISSION

CITY OF CLOVIS ORGANIZATION CHART
Police Department, General Fund
Administration and Support Services
Communication
Patrol
Investigations
Youth Services
Animal Shelter
City Manager Department
Economic Development, General Fund
Housing and Community Development,
Special Revenue Fund
Information Services, Internal Service Fund
Elections, General Fund
Legislative Administrative, General Fund
Records Management, General Fund
Public Utilities Department
Water, Enterprise Fund
Wastewater, Enterprise Fund
Community Sanitation, Enterprise Fund
Parks, General Fund
Streets, General Fund
Fleet Maintenance, Internal Service Fund
General Services Department
Personnel/Risk Management, General Fund
Senior Services, General Fund
Public Transit, Enterprise Fund
Recreation Services, General Fund
Facilities Maintenance, Internal Service Fund
Purchasing, Internal Service Fund
Fire Department, General Fund
Operations
Training
Fire Prevention
Emergency Preparedness
Finance Department, General Fund
Accounting/Reporting
Utility Billing
Budgeting
City Treasurer
9 95
AGENDA ITEM NO. 11.

CITY OF CLOVIS

LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2022
Title Name
City Manager John Holt
Assistant City Manager Andrew Haussler
City Clerk Karey Cha
Finance Director/City Treasurer Jay Schengel
Fire Chief John Binaski
General Services Director Shonna Halterman
Planning & Development Services Director Renee Mathis
Police Chief Curt Fleming
Public Utilities Director Scott Redelfs
10 96
AGENDA ITEM NO. 11.

F
I
N
A
N
C
I
A
L
S
E
C
T
I
O
N
97 AGENDA ITEM NO. 11.
4660 La Jolla Drive, Suite 100
San Diego, California 92122
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of City Council
of the City of Clovis
Clovis, California
Opinions
We have audited the accompanying financial statements of t he governmental activities, the business-type activities, each major fund, and the aggregate remaining fu nd information of the City of Clov is, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements 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, 2022, and the respec tive changes in financial position, cash flows, and the budgetary comparison schedule for the General Fund, 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 Fi nancial 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 obtai ned 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 stat ements in accordance with accounting principles generally accepted in the United Stat es 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 requir ed 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.
98 AGENDA ITEM NO. 11.

To the Honorable Mayor and Members of City Council
of the City of Clovis
Clovis, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about w hether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report t hat includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards gen erally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the ov erride of internal control. Misstatements are considered material if there is a substantial likelihood that, individu ally 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 auditing standards generally accepted in the Un ited States of America and Government Auditing Standards, we:
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risk s of material misstatement of the financ ial 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 requ ire that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Sch edules of Changes in Net Pension Liability and Related Ratios, and the Schedule of Pension Contributions as listed in the table of c ontents, be presented to supplement the basic financial statements. Such informat ion, although not a part of the basic fi nancial 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 inform ation 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 ou r 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.

Other Information
Our audit was conducted for the purpose of forming opinion s on the financial statements that collectively comprise the City’s basic financial statements as a whole. The Introduct ory Section, the Combining and Individual Nonmajor Fund Financial Statements, the Budget Comparison Schedules, and the Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. 14 99
AGENDA ITEM NO. 11.

To the Honorable Mayor and Members of City Council
of the City of Clovis
Clovis, California

The Combining and Individual Nonmajor Fund Financial Statements and the Budgetary Comparison Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other reco rds used to prepare the financial statements or to the financial statements themselves, and other additional procedu res in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 14, 2022 on our consideration of the City’s internal control over financ ial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreeme nts and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Diego, California
November 14, 2022
15 100
AGENDA ITEM NO. 11.

Management’s Discussion and Analysis
This discussion and analysis of the City of Clovis’ financial performance provides an overview of the City’s financial activities for the fisca l year ended June 30, 2022. Please read it in conjunction with the accompanyi ng transmittal letter, the basic financial statements and the accompanying notes to those financial statements.

Financial Highlights
The City’s government-wide total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources (net position) at the close of the fiscal year by $952 million, which is 7% more than 2021. Of this amount, $95 million is in unrestricted net position, which is available to meet the City’s ongoing commitments to citizens and creditors.

The City’s General Fund, including Lands cape Maintenance, Parking and Business Improvement (PBIA), and Supplemental Law Enforcement, ended the year with a fund balance of $37 million, which represents a net increase of $12 million from the previous year. The unassigned balance of $8 million is available for carryover to fund future general fund expenditures.

During the year, previously approved rate increases of 4% were implemented for recycling and green waste programs along with a 3% increase in the refuse collection and disposal program. A 3% increase in t he Water Fund was also implemented during the 2022 fiscal year. The City continued to rebate the full sewer bond surcharge of $7.30 per month.

Overview of the Financial Statements
This annual report consists of a series of financial statements. These statements include all activities of the City of Clovis, using the integrated approach as prescribed by GASB Statement No. 34. The Statement of Net Position and Statem ent of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund financial statements tell how these servic es are financed in the short term as well as what remains for future spending. Fund financial statem ents also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside the Government.

Reporting the City as a Whole
Government-wide financial statements. The government-wide fi nancial statements are designed to provide readers with a broad overview of the City’s finances. These statements include all assets and liabili ties of the City using the accrual basis of accounting, which is similar to the accounting method used by most pr ivate sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid out.
16 101
AGENDA ITEM NO. 11.

The statement of net position presents information on all the Cit y’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 one indicator of whether the City’s financial position is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed in the most recent fiscal year . All changes of net position are reported as soon as the underlying event giving rise to the change o ccurs. Thus, revenues and expenses are reported on this statement for some items that will result in cash flows in future fiscal periods (e.g. earned but unused vacation leave).

The government-wide financial statements of the City are divided as follows:

Governmental Activities: Most of the City’s basic services are included here such as public safety, transportation (street and roads), community development, culture and recreation and general government. These services are prim arily financed by property and sales taxes and federal and state grants.

Business-type Activities: The City charges fees to customers to cover the costs of services provided. The City’s utilities, water, sewer, community sanitation (refuse and street cleaning), planning and development services as well as public transit services are included here.

The government-wide financial statements can be found on pages 30-31 of this report.

Fund financial statements. The fund financial statements provide more detailed information about the City’s most significant funds, not the City as a whole. A fund is a grouping of related accounts that is used to maintain cont rol over resources that have been segregated for specific activities or objectives. Some funds are required to be established by State Law or by bond covenants. Managem ent establishes other funds to control and manage money for particular purposes or to sh ow the City is meeti ng legal responsibilities for using certain taxes, grants, and other money. All the funds of the City can be classified 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 governmen t-wide financial statements.

However, unlike the government -wide financial statements, government al fund financial statements focus on the near-term inflows and outfl ows of spendable resources, as well as on balances of spendable resources available at t he end of the fiscal year. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. Such information is useful in evaluating a government’s near-term financing requirements.

Because the focus of the gover nmental funds is narrower than that of the government-wide financial statements, it is usef ul to compare the information presented for the 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 government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statemen t of revenues, expenditures, and changes in fund balances provide reconciliation betw een governmental funds and governmental activities. This reconciliation explains the relationship (or di fferences) between the fund statements and the government-wide statements.
17 102
AGENDA ITEM NO. 11.

The City of Clovis maintains seven individual gov ernmental funds. Info rmation is presented separately in the government al funds’ balanc
e sheet and in the governmental funds’
statement of revenues, expenditures, and changes in fund balances for the General Fund and the Local Transportation Fund, both of which are considered major funds. Data from the other five funds are combined in to a single aggregated pr esentation. Individual fund data for each of these nonmajor gov ernmental funds is provided in t he form of combining statements elsewhere in this report.

The City adopts an annual appr opriated budget for the General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance to this budget. The basic governmental fund financial statements can be found on pages 32-35 of this report.

Proprietary funds. The City has two different types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to report the same functions represented as business-type activities in the government- wide financial statement s. The City utilizes enterprise funds to account for those activities that are supported primarily by user charges to external users, and includes community sani tation, sewer disposal, water, transit and planning and development services . Internal service funds are used to account for activities that are supported by user char ges primarily to the City’s other programs and activities and include employee benefits, general services, self-insurance and fleet services. Because all these services predominantly b enefit governmental rather than business-type functions, they have been included within gove rnmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds since they are all major funds . All the internal service funds are combined into a single, aggregated presentation in the fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this r eport. The basic propr ietary fund financial statements can be found on pages 36-41 of this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefits of parties outside the city. Fiduciary funds are not reflected in the government-wide financial statements because the City cannot use these funds to finance its operations. The basic fiduciary fund financial statements can be found on pages 42-43 of this report.

Notes to the financial statements. The notes provide additiona l information that is essential to a full understanding of the data provided in the government-wide and fund statements. The notes to the financial st atements can be found on pages 44-79 of this report.
18 103
AGENDA ITEM NO. 11.

Government-wide Financial Analysis
Below is a table showing the City’s net position for the fiscal year ended June 30, 2022, with comparative data for the fiscal year ended June 30, 2021.

City of Clovis'
Net Position
Governmental
activities
Business-type
activities Total
2022 2021 2022 2021 2022 2021
Current and other assets 191,734,793$ 171,950,453$ 168,983,180$ 160,003,046$ 360,717,973$ 331,953,499$ Capital and intangible assets 661,760,299 628,742,037 279,121,984 280,992,880 940,882,283 909,734,917 Total assets 853,495,092 800,692,490 448,105,164 440,995,926 1,301,600,256 1,241,688,416 Deferred Outflows of Resources 16,706,824 22,366,889 4,279,095 5,471,646 20,985,919 27,838,535 Long-term liabilities outstanding 167,313,860 201,928,495 135,561,569 154,730,750 302,875,429 356,659,245 Other liabilities 15,669,991 14,550,064 10,428,796 8,402,477 26,098,787 22,952,541 Total liabilities 182,983,851 216,478,559 145,990,365 163,133,227 328,974,216 379,611,786 Deferred Inflows of Resources 28,634,169 656,105 12,809,625 3,283,535 41,443,794 3,939,640 Net Position:

Net investment in capital assets 631,981,885 595,863,289 176,055,300 171,482,301 808,037,185 767,345,590 Restricted 48,790,200 42,460,018 4 14 48,790,204 42,460,032 Unrestricted (22,188,189) (32,398,592) 117,528,965 108,568,495 95,340,776 76,169,903 Total net position 658,583,896$ 605,924,715$ 293,584,269$ 280,050,810$ 952,168,165$ 885,975,525$

As of June 30, 2022, the City’ s government-wide total assets and deferred outflows of resources exceeded liabilities and deferred infl ows of resources (net position) by $952 million. Governmental activities finished the year with a positive net position balance of $659 million, an increase of $53 million, or 9%, over 2021. Business-type activities finished the year with a positive balance of $294 million, an increase of $14 million, or 5%, over 2021.

Net position, as noted earlier, may serve over time as a useful indicator of the City’s health of financial position.

Of the total net position, $808 m illion, or 85%, is the City’s net investment in capital assets (e.g. land, buildings and im provements, machinery and equipment and the road network) less any related debt used to acquire those asse ts that is still out standing. The City’s investment in capital assets increased $41 m illion, restricted net position increased by $6 million and unrestricted net posit ion increased by $19 million, a ccounting for the increase in total net position of $66 million. This is primarily due to the City’s investment in the road network, buildings and related improvements, and machinery and equipment.

The majority of the City’s long-term liabilities re late to the City’s net pension liability and the acquisition of capital assets. Some of those assets include the City’s corporation yard, fire stations, police vehicles and sewer and water infrastructure including the surface water treatment plant and the sewer tr eatment-water reuse facility. These capital assets are utilized to provide services to citizens and are not available for future spending. The repayment of the debt on these assets must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.

Restricted net position is $49 million, which r epresents 5% of the total net position.

Restricted net position r epresents those resources that are s ubject to external restrictions on how they may be used. These restrictions are established by bond covenants or restrictions on the use of funds by state or federal regulations.

19 104
AGENDA ITEM NO. 11.

Unrestricted net position repres ents those resources which may be used to meet the City’s ongoing commitments to citizens and creditors. Government-wide unrestricted net position is $95 million, or 10% of the total net position, which is a 25% incr ease from the previous year.

Governmental activities have a negative $(22) m illion unrestricted net pos ition, which is an increase of $10 million compared to last year. Business-type activities have $118 million in unrestricted net position, an increase of $9 million, or 8%, compared to last year.

Governmental activities. Governmental activities account for $659 million, or 69%, of the total Government-wide net position. This is an increase of $53 mill ion, or 9%, over June 30, 2021. Donated and constructed assets increased by $36 million while the amounts available for debt service, street and r oad construction and community development increased by $6 million. Addi tionally, the amount accumulated during the year for normal activities, unrestricted net position, increased by $10 million. 20 105
AGENDA ITEM NO. 11.

The following lists key components of this increase:

City of Clovis'
Changes in Net Position
Governmental
activities
Business-type
activities Total
2022 2021 2022 2021 2022 2021
Revenues:

Program revenues:

Charges for services
$ 36,537,027 $ 31,686,043 $ 90,788,167 $ 82,126,743 $ 127,325,119 $ 113,812,786 Operating grants and contributions 8,998,232 12,466,179 5,328,177 4,495,790 14,326,409 16,961,969 Capital grants and contributions 26,455,750 21,005,130 2,598,127 2,652,346 29,053,952 23,657,476 General revenues:

Property taxes 33,240,530 30,377,419 33,240,530 30,377,419 Sales taxes 31,105,966 27,526,307 31,105,966 27,526,307 Franchise taxes 2,768,353 2,599,469 2,768,353 2,599,469 Transient occupancy taxes 3,780,220 3,538,141 3,780,220 3,538,141 Unrestricted investment earnings (losses) (2,638,130) 456,414 (3,280,236) 55,898 (5,918,366) 512,312 Total revenues 140,247,948 129,655,102 95,434,235 89,330,777 235,682,183 218,985,879 Expenses:

General government 5,464,315 7,426,034 5,464,315 7,426,034 Public safety 55,414,669 62,766,429 55,414,669 62,766,429 Transportation 17,096,467 16,632,292 17,096,467 16,632,292 Community development 839,893 2,994,634 839,893 2,994,634 Cultural and recreation 7,824,991 7,174,222 7,824,991 7,174,222 Interest and other charges 488,432 725,577 488,432 725,577 Community Sanitation 23,424,108 22,078,675 23,424,108 22,078,675 Sewer 20,366,227 19,541,438 20,366,227 19,541,438 Water 21,431,323 24,963,531 21,431,323 24,963,531 Transit 7,063,395 6,791,962 7,063,395 6,791,962 Planning & Development Services 10,075,723 11,337,681 10,075,723 11,337,681 Total expenses 87,128,767 97,719,188 82,360,776 84,713,287 169,489,543 182,432,475 Increase in net position before transfers 53,119,181 31,935,914 13,073,459 4,617,490 66,192,640 36,553,404 Transfers (460,000) (500,000) 460,000 500,000 0 0 Increase in net position 52,659,181 31,435,914 13,533,459 5,117,490 66,192,640 36,55 3,404 Net position-beginning 605,924,715 574,488,801 280,050,810 274,933,320 885,975,525 849,422,121 Net position - ending $ 658,583,896 $ 605,924,715 $ 293,584,269 $ 280,050,810 $ 952,168,165 $ 885,975,525 Total governmental revenues for the year were $140 million, which is $11 million, or 8%, more than in 2021. The majority of this increase is attributable to federal relief funding for Covid-19 and Sales taxes. Taxes, including property, sales, fran chise, and transient occupancy, account for $71 million, or 51%, of the City’s governmental activities revenue and increased $7 million, or 11%, fr om 2021. Property taxes incr eased by $3 million due to higher property values and the shift of former redevelopment tax increment to the City. Sales taxes increased by $4 million mainly due to t he accelerated pace of online sales which has become a consumer purchasing preference after the pandemic. 21 106
AGENDA ITEM NO. 11.

Total governmental expenses for the year we re $87 million, a decreas e of $11 million, or 11%, from 2021. Public Safety , which includes police and fire , accounts for $55 million, or 64%, of the total governmental activities’ expenses. Public Safety expenses decreased $7 million, or 12%, from 2021 primarily due to salary savings related to police department vacancies. Community development expenses decreased from 2021. General government expenses decreased from 2021. Transportation remained unchanged when compared to 2021. Cultural and Recreation expenses were $8 million, slightly increased when compared to 2021.

Expenses and Program Revenues-Governmental Activities
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
General
Government
Public
Safety
Transportation Community
Development
Cultural
and Recreation
Ex penses Program Revenues
Revenues by Source-Governmental Activities
charges for
serv ices
26%
operating grants
and contributions
6%
capital grants
and contributions
19%
property taxes
23%
business license &
franchise taxes
2%
sales tax es
22%
transient
occupancy taxes
2%
22 107
AGENDA ITEM NO. 11.

Program revenues that include charges for servic es and grants specific to certain programs were $72 million, or 51% of the total governmental activity revenue. Much of the growth in program revenues, notably in General Government, resulted from federal relief funds such as the Coronavirus State and Local Fiscal Recovery funds. The amounts necessary to fully fund the governmental activity pr ograms are made up of “general” revenues such as taxes, interest, and grants and contributions.

Business-type Activities. Business-type activities account for $294 million, or 31% of the total Government-wide net position. This is an increase of $14 m illion, or 5%, from June 30, 2021. The component, “Net Investment in Capital Assets” accounts for $176 million, or 60% of the total net position, and is an incr ease of $5 milli on from 2021. The amount of restricted net position represents less than 1% of the total net position. The amount of net position that is unrestricted, $118 million, or 40%, increased $9 million from 2021. Charges for current services were $91 million, or 95% of t he total business-type activity revenue, and slightly increased from 2021. Grants and contribut ions of $8 million represent $3 million in contributions of sewer and water mains from developers and $5 million in state transit assistance.

Expenses and Program Revenues-Business-type Activities
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Community Sanitation Sewer Water Transit Planning &
Development Services
Expenses Program Revenues
23 108
AGENDA ITEM NO. 11.

Revenues by Source-Business-type Activities
charges for
serv ices
92%
operating grants
and
contributions
5%
capital grants
and
contributions
3%

Included in charges for current services are development fees relating to the construction of capital improvements for sewer disposal and water operations. The revenues generated by these development fees are normally accumulat ed until such time as there are sufficient reserves to construct or acquire capital assets or to pay debt service on previously incurred debt. Debt service payments of principal ar e not considered a progr am expense and are, therefore, not reflected in this chart.

Financial Analysis of the City’s Funds

As noted earlier, the City uses fund accounti ng to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. Fund balance is defined in five categories: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balances cannot be spent because of their form. Rest ricted fund balance has limitatio ns imposed externally by creditors, grantors, contributors, or laws and regul ations of other gov ernments. Committed fund balance has self-imposed limitations set in place prior to the end of the period.

Assigned fund balance is the amount left avail able for appropriation at the City’s discretion within the fund’s purpose.

The City’s governmental funds ended the year with positive fund balances. The ending fund balance for all funds is $76 million, which is a $14 million increase from the previous year. Of the total fund balance, $8 million or 11% is unassigned, which, within the limitations of the fund’s purpose, is available for spending at the City’s discretion. The remainder of the fund balance is not available for new spending because it is either in a form not able to be spent or has already been restricted, assigned or committed for the following: (in millions)

24 109
AGENDA ITEM NO. 11.

Capital Projects $22.4
Community Development 14.2
Debt service 0.4
Landscape Maintenance 7.2
Parking and Business Improvement 0.1
Law Enforcement <0.1
Services materials and supplies 1.4
Capital Outlay 9.2
Emergencies 19.4

The general fund is the chief operating fund of the City. As of June 30, 2022, the total fund balance (including all categorie s) of the general fund was $37 million, an increase of $12 million from June 30, 2021. The total fund balance of $37 million includes restricted balances of $7.4 million, assigned balances of $21 milli on, and an unassigned balance of $8.4 million.

The change in fund balance was primarily due to the increases in revenues from other agencies and sales tax, as well as the decrease in expenditures related to public safety.

The local transportation fund, used to account fo r all street construction projects, incurred less than budgeted expenditures as a result of se veral large projects awarded towards the end of the fiscal year and limited staff resources. The ending fund balance of $22.4 million is $2.0 million more than June 30, 2021.

Proprietary funds. As indicated in the description of proprietary funds, there are two types of funds, enterprise and internal service funds. The City’s enterprise funds ended the year with positive unrestricted net po sition except for the Transit Fund. This deficit balance is attributable to the liability of CalPERS pension funds. This liabi lity is long-term in nature, not requiring current resources, and is not being funded at this time.

All the internal service funds finished with pos itive unrestricted net po sition. The current liability for workers’ compensation claims is $8.7 million. Th e City funds the current year workers’ compensation expendit ures with charges to City pr ograms. The City has also funded approximately $2.8 million of the accrued lia bility through charges to City programs in prior years. The balance of the liability is of a long-term nature, not requiring current resources, and therefore has not been funded.

General Fund Budgetary Highlights

Throughout the fiscal year it was necessary to adjust the original General Fund budget. The Statement of Revenues, Expenditures, and Chang e in Fund Balance-Budget to Actual, General Fund, on page 35 shows the original budget and final budget. Below is a summary of the primary amendments:

$ 158,000 Fire Department - out of county emergency response overtime

25 110
AGENDA ITEM NO. 11.

The Variance with Final Budget within the same statement allows the City to analyze and improve the upcoming fiscal year budget. Below is a summary of the primary variances:

Budgeted
Original
Budgeted
Final
Actual
Amounts
Final Budget
Variance Explanation
Revenues:

Property Taxes 32,654,000$ 32,654,000$ 33,240,530$ 586,530$ Variance due to larger amounts realized in various
property taxes mostly in current year unsecured and in
lieu of vehicle license fees.

Sales Taxes 25,974,000 25,974,000 31,105,966 5,131,966 Variance due to a shift in online sales exacerbated by
the pandemic and aided by the passage of AB 147-The
Marketplace Facilitator Act.

Business License &
Franchise Taxes 6,313,000 6,313,000 6,819,233 506,233 Variance shows a rebound of businesses and the
addition of new businesses post pandemic.

Transient Occupancy
Taxes 2,300,000 2,300,000 3,780,220 1,480,220 Variance due to increased occupancy at hotels and
short term rentals than anticipated.

License and Permits 694,000 694,000 1,374,447 680,447 Variance largely due to higher than anticipated card
room permits.

From Other Agencies 4,365,100 4,857,339 14,921,870 10,064,531 Variance largely due to funds received from the
American Rescue Plan Act.

Charges for
Current Services 5,940,500 6,020,500 6,646,108 625,608 Recreational sports more than doubled projections
along with emergency responses.

Expenditures:

Police 44,034,473 44,575,712 42,346,890 2,228,822 Variance due to open positions of patrol officers,
resulting in salary savings.

Public Utilities 11,611,866 11,611,866 11,011,110 600,756 Variance due to salary savings and a reduction in
usage of services and supplies.

Other Financing Sources:

Transfer Out (6,099,800) (7,686,300) (8,865,300) (1,179,000) Largely based on reimbursement of lease payments due
to debt service and new fiscal year projects.

Comparison of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund
Capital Assets and Debt Administration
Capital Assets. The City’s capital assets for its governmental and business-type acti vities
as of June 30, 2022, amount to $941 million (net of depreciation/amortization), an increase of $31 million over 2021. Capital assets include land, buildings and im provements, machinery and equipment, and road network and intangible capacity rights for water and sewer.

Major capital asset additions this year include the following:

Land $ 12 million
Road network improvements and land acquisitions $ 7 million During the year the City made improvements to various streets and received developer donated infrastructure. The sewer system improvements include the City’s share of capital projects for the Fresno-Clovis regional wastewater treatment plan t. Additional information on the City’s capital assets can be found in note IV.E on pages 61-62. 26 111
AGENDA ITEM NO. 11.

CITY OF CLOVIS’
Capital Assets
(net of depreciation)
Governmental
activities
Business-type
activities Total
2022 2021 2022 2021 2022 2021
Land 276,760,989 $ 264,065,286 $ 38,062,150 $ 37,937,477 $ 314,823,139 $ 302,002,763 $ Buildings and improvements 94,360,482 79,048,384 210,547,341 212,819,637 304,907,823 291,868,021 Right to use direct borrowings buildings 11,325,193 11,942,657 11,325,193 11,942,657 Machinery and equipment 14,534,682 15,052,131 3,423,598 3,703,364 17,958,280 18,755,495 Right to use direct borrowings equipment 3,331,123 3,934,969 3,331,123 3,934,969 Road network 261,447,830 254,698,610 261,447,830 254,698,610 Intangibles 27,088,895 26,532,401 27,088,895 26,532,401 Total 661,760,299 $ 628,742,037 $ 279,121,984 $ 280,992,879 $ 940,882,283 $ 909,734,916 $

Long-term Debt . The City’s long-term debt as of June 30, 2022, wa s $131 million, with governmental activities accounting for $30 milli on, or 23%, and business-type activities accounting for $101 million, or 77%.

CITY OF CLOVIS'
Outstanding Bonds, Loans, Notes from Direct Borrowings and Contracts Governmental
activities
Business-type
activities Total
2022 2021 2022 2021 2022 2021
Loans payable 2,170,424$ 2,439,906$ 2,170,424$ 2,439,906$ Notes from direct borrowings 13,834,128 16,494,902 13,834,128 16,494,902 Revenue bonds 13,773,862 13,943,940 99,030,400$ 104,255,562$ 112,804,262 118,199,502 Contracts payable 2,355,574 3,455,186 2,355,574 3,455,186 Total 29,778,414$ 32,878,748$ 101,385,974$ 107,710,748$ 131,164,388$ 140,589,496$

General obligation debt are direct obligations of the City and are backed by the full faith and credit of the City requiring voter approval and may have a tax rate set to cover repayment.

State statues limit the amount of general obligation debt to 15% of the City’s total assessed valuation. The City of Clovis’ debt limit is $2.0 b illion. The City currently has no general obligation debt outstanding. Detailed information on the City’s long-term debt activity can be found in Note F. of the notes to the financial statements.

Economic Factors and Next Year’s Budgets and Rates
The City is closely watching the national economy along with the state’s budget and the impact these have on Clovis. During the budget development process for the 2022/23 fiscal year, the City was able to incr ease general fund expenditures by $7 million, or 8% compared to the estimated 2021/22 expenditures. The increas e is largely due to funding new positions, cost-of-living salary increases, increased costs of employee benef its, and general price increases impacting the cost of services and supplies.

While the City’s unemployment ra te is currently low at 3.4%, and even lower than the national average of 3.8% and stat e average of 4.0%, the U.S. has experienced the highest inflation in 40 years. This is a concern for the City in t he next budget year. The increase in prices is putting further pressure on households and shifting household dollars away from discretionary spending which could have a signi ficant impact on the City’s sales taxes as a larger portion of income goes to essentials such as food, transportation and housing costs.

High inflation has originated from a mism atch between total demand and supply in the economy, largely as a result of constraints from the pandemic and an aggressive fiscal and 27 112
AGENDA ITEM NO. 11.
monetary policy response. The F ederal Reserve has already begun to act, raising interest rates by three percentage points since Marc h 2022 and signaling further tightening until inflation is brought under control. The Federal Reserve only has a limited set of tools to fight inflation, which work by boosting interest rates. While generally effective in reducing inflation, higher interest rates can also impose subst antial pain on the housing and labor markets and reduce investments that promote long-term growth.

On June 30, 2022, the General Fund has an assi gned fund balance of $19.4 million, or 22% of 2022/23 budgeted expenditures set aside for unf oreseen emergencies. The City continues to monitor the impacts of high inflation and rising interest rates on the economy and the City’s budget and will continue to adjust its strategies to address those impacts.

The Council determined that it was necessary for the Community Sanitation Fund to implement a rate increase of 4% for th e green waste and recyclin g programs and to implement a rate decrease of 1.5% for the re fuse collection and disposal program for the 2022/23 fiscal year. Furthermore, the Council determined that a 3% increase was necessary for the Water Fund. The Sewer Fund will have a 3% rate increase and the full $7.30 bond surcharge will continue to be fully rebated.

Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City of Clovis’ finances and to demonstrate the City’s

accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Finance Director, City of Clovis, 1033 Fifth Street, Clovis, CA, 93612.
28 113
AGENDA ITEM NO. 11.

B
A
S
I
C

F
I
N
A
N
C
I
A
L

S
T
A
T
E
M
E
N
T
S

29 114
AGENDA ITEM NO. 11.

Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 170,937,370$ 142,963,043$ 313,900,413$ Receivables 7,427,786 14,399,133 21,826,919 Internal balances (9,765,757) 9,765,757
Due from other governments 10,440,511 1,855,243 12,295,754 Inventories 908,000 908,000
Restricted assets:

Cash and investments 11,786,883 4 11,786,887 Capital assets, not being depreciated 276,760,989 38,062,150 314,823,139 Capital assets (net of accumulated depreciation) 384,999,310 213,970,939 598,970,249 Intangible assets (net of accumulated amortization) 27,088,895 27,088,895 Total assets 853,495,092 448,105,164 1,301,600,256

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 16,706,824 4,159,476 20,866,300 Deferred loss on bond refunding 119,619 119,619 16,706,824 4,279,095 20,985,919

LIABILITIES
Accounts payable 9,318,330 4,169,973 13,488,303 Accrued payroll 3,111,347 3,111,347
Unearned revenue 3,240,314 6,258,823 9,499,137 Long-term liabilities:

Due within one year 44,567,680 13,314,971 57,882,651 Due in more than one year 122,746,180 122,246,598 244,992,778 Total liabilities 182,983,851 145,990,365 328,974,216

DEFERRED INFLOWS OF RESOURCES
Lease related deferred inflows 233,828 1,415,307 1,649,135 Pension related deferred inflows 28,400,341 9,593,989 37,994,330 Deferred gain on bond refunding 1,800,329 1,800,329 28,634,169 12,809,625 41,443,794

NET POSITION
Net investment in capital assets 631,981,885 176,055,300 808,037,185 Restricted for:

Debt service 11,981,717 4 11,981,721 Streets and roads 22,475,133 22,475,133
Community development 7,136,149 7,136,149
Landscape maintenance 7,197,201 7,197,201
Unrestricted (deficit) (22,188,189) 117,528,965 95,340,776 Total net position 658,583,896$ 293,584,269$ 952,168,165$ The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Net Position
June 30, 2022
30 115
AGENDA ITEM NO. 11.

Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contri butions Activities Activities Total Function/Programs
Primary government:

Governmental activities:

General government 5,464,315 $ 10,164,616 $ 8,817,583 $ 13,517,884 $ 13,517,884 $ Public safety 55,414,669 4,949,837 109,578 574,948 $ (49,780,306) (49,780,306) Transportation 17,096,467 16,976,152 25,664,519 25,544,204 25,544,204 Community development 839,893 382,684 71,071 169,746 (216,392) (216,392) Cultural and recreation 7,824,991 4,063,738 46,537 (3,714,716) (3,714,716) Interest and other charges 488,432 (488,432) (488,432) Total governmental activities 87,128,767 36,537,027 8,998,232 26,455,750 (15,137,758) 0 (15,137,758) Business-type activities:

Community sanitation 23,424,108 25,034,211 1,610,103 $ 1,610,103 Sewer disposal 20,366,227 23,678,416 1,112,433 4,424,622 4,424,622 Water 21,431,323 27,751,315 1,485,694 7,805,686 7,805,686 Transit 7,063,395 2,920,835 5,169,390 1,026,830 1,026,830 Planning & Development Services 10,075,723 11,403,390 158,787 1,486,454 1,486,454 Total business-type activities 82,360,776 90,788,167 5,328,177 2,598,127 0 16,353,695 16,353,695 Total primary government 169,489,543 $ 127,325,194 $ 14,326,409 $ 29,053,877 $ (15,137,758) 16,353,695 1,215,937 General revenues:

Property taxes 33,240,530 33,240,530
Sales taxes 31,105,966 31,105,966
Franchise taxes 2,768,353 2,768,353
Transient occupancy taxes 3,780,220 3,780,220
Unrestricted investment earnings (losses) (2,638,130) (3,280,236) (5,918,366) Transfers (460,000) 460,000 0
Total general revenues and transfers 67,796,939 (2,820,236) 64,976,703 Changes in net position 52,659,181 13,533,459 66,192,640 Net position-beginning 605,924,715 280,050,810 885,975,525 Net position-ending 658,583,896 $ 293,584,269 $ 952,168,165 $ The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Activities
For the Year Ended June 30, 2022
31 116
AGENDA ITEM NO. 11.

Other Total
Local Governmental Governmental
General Transportation Funds Funds
ASSETS
Cash and investments 32,381,404 $ 57,714,692 $ 14,506,436 $ 104,602,532 $ Cash with agents-restricted 231,700 231,700
Receivables 3,252,359 312,025 3,365,875 6,930,259 Due from other governments 5,969,046 4,376,714 78,225 10,423,985 Total assets 41,602,809$ 62,635,131$ 17,950,536$ 122,188,476$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 1,310,683 $ 2,766,927 $ 1,224,600 $ 5,302,210 $ Accrued payroll 3,111,348 3,111,348
Due to other governments 16,545 16,545
Deposits and other liabilities 254,941 36,973,604 34,259 37,262,804 Unearned revenue 215,549 487,682 703,231
Total liabilities 4,909,066 40,228,213 1,258,859 46,396,138 Fund balances:

Restricted for:

Capital projects 22,406,918 68,215 22,475,133
Community development 31,270 6,898,628 6,929,898 Debt service 426,534 426,534
Landscape maintenance 7,197,201 7,197,201
Parking and business improvement 131,893 131,893 Law enforcement 74,358 74,358
Assigned for:

Services, materials and supplies 1,444,500 1,444,500 Capital 9,298,300 9,298,300
Emergencies 19,400,000 19,400,000
Unassigned, reported in:

General fund 8,414,521 8,414,521
Total fund balances 36,693,743 22,406,918 16,691,677 75,792,338 Total liabilities and fund balances 41,602,809$ 62,635,131$ 17,950,536$ Reconciliation of the Governmental Fund Balances to the Governmental Activities Net Position Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. (Net of $101,967,113 of internal service fund capital assets) 559,793,186 Internal service funds are used by management to charge the costs of fleet management, employee benefits, liability and property insurance and general services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. (Net of $9,765,757 allocated to business-type activities) 118,449,246 Long-term liabilities, including compensated absences, and net pension liability, are not due and payable in the current period and therefore are not reported in the funds. (95,450,874) Net Position of Governmental Activities 658,583,896 $
The notes to the financial statements are an integral part of this statement.

Major Funds
City of Clovis
Balance Sheet
Governmental Funds
June 30, 2022
32 117
AGENDA ITEM NO. 11.

Other Total
Local Governmental Governmental
General Transportation Funds Funds

REVENUES
Property taxes 33,240,530 $ 33,240,530 $
Sales taxes 31,105,966 31,105,966
Business license & Franchise taxes 6,819,233 6,819,233 Transient occupancy taxes 3,780,220 3,780,220
Licenses and permits 1,374,447 1,374,447
Fines and forfeitures 189,018 189,018
Use of money and property (248,614) (1,033,569)$ (296,595) $ (1,578,778) From other agencies 14,921,870 13,648,046 767,294 29,337,210 Charges for current services 6,646,108 553,081 2,604,335 9,803,524 Other revenues 6,722,106 257 1,274 6,723,637 Total revenue 104,550,884 13,167,815 3,076,308 120,795,007

EXPENDITURES
Current:

General government 7,464,459 7,464,459
Public safety 63,297,211 63,297,211
Transportation 4,730,949 463,093 5,194,042 Community development 62 369,843 476,474 846,379 Cultural and recreation 8,471,633 8,471,633
Capital outlays 10,408,054 2,352,329 12,760,383 Total expenditures 83,964,314 11,240,990 2,828,803 98,034,107 Excess (deficiency) of revenues
over (under) expenditures 20,586,570 1,926,825 247,505 22,760,900

OTHER FINANCING SOURCES (USES)
Transfers out (8,865,300) (150,000) (9,015,300) Total other financing sources (uses) (8,865,300) 0 (150,000) (9,015,300) Net change in fund balances 11,721,270 1,926,825 97,505 13,745,600 Fund balances-beginning 24,972,473 20,480,093 16,594,172 62,046,738 Fund balances-ending 36,693,743 $ 22,406,918 $ 16,691,677 $ 75,792,338 $ The notes to the financial statements are an integral part of this statement.

Major Funds
City of Clovis
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
33 118
AGENDA ITEM NO. 11.

Amounts reported for governmental activities in the statement of activities (page 31) are different because:

Net change in fund balances-total governmental funds (page 33) 13,745,600 $ Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period. 109,468
The net effect of donations and miscellaneous transactions involving capital assets (i.e., sales and trade-ins) is to increase net position. 20,492,503 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 4,087,514
Internal service funds are used by management to charge the costs of fleet maintenance, employee benefits, liability and property insurance and general services to individual funds.

The net revenue of certain activities of internal service funds is reported with governmental activities. Net of $4,981,707 allocated to business-type activities. 14,224,096 Change in net position of governmental activities (page 31) 52,659,181 $ The notes to the financial statements are an integral part of this statement.

City of Clovis
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds To the Government-Wide Statement of Activities
For the Year Ended June 30, 2022
34 119
AGENDA ITEM NO. 11.

Variance with
Budgeted Amounts Final Budget-
Actual Positive
Original Final Amounts (Negative)

REVENUE
Property taxes 32,654,000 $ 32,654,000 $ 33,240,530 $ 586,530 $ Sales taxes 25,974,000 25,974,000 31,105,966 5,131,966 Business license & Franchise taxes 6,313,000 6,313,000 6,819,233 506,233 Transient occupancy taxes 2,300,000 2,300,000 3,780,220 1,480,220 Licenses and permits 694,000 694,000 1,374,447 680,447 Fines and forfeitures 187,000 187,000 189,018 2,018 Use of money and property 103,900 103,900 (248,614) (352,514) From other agencies 4,365,100 4,857,339 14,921,870 10,064,531 Charges for current services 5,940,500 6,020,500 6,646,108 625,608 Other revenues 6,590,500 6,590,500 6,722,106 131,606 Total revenues 85,122,000 85,694,239 104,550,884 18,856,645

EXPENDITURES
Council 384,300 384,300 340,924 43,376 Clerk 298,700 298,700 258,685 40,015 Attorney 1,101,900 1,101,900 691,496 410,404 Manager 2,224,600 2,224,600 2,085,035 139,565 General services 3,028,801 3,028,801 2,971,710 57,091 Finance/Treasurer 3,527,021 3,527,021 3,308,140 218,881 Police 44,034,473 44,575,712 42,346,890 2,228,822 Fire 20,585,593 20,951,255 20,950,324 931
Public utilities 11,611,866 11,611,866 11,011,110 600,756 Total expenditures 86,797,254 87,704,155 83,964,314 3,739,841 Excess (deficiency) of revenues
over expenditures (1,675,254) (2,009,916) 20,586,570 22,596,486

OTHER FINANCING SOURCES (USES)
Transfers Out (6,099,800) (7,686,300) (8,865,300) (1,179,000) Total other financing sources (uses) (6,099,800) (7,686,300) (8,865,300) (1,179,000) Net change in fund balance (7,775,054) (9,696,216) 11,721,270 21,417,486 Fund balance-beginning 24,972,473 24,972,473 24,972,473 Fund balance-ending 17,197,419 $ 15,276,257 $ 36,693,743$ 21,417,486$ The notes to the financial stat
ements are an integral part of this statement.

City of Clovis
Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual General Fund
For the Year Ended June 30, 2022
35 120
AGENDA ITEM NO. 11.

Business-Type Activities-Enterprise Funds
Major Enterprise Funds Nonmajor Governmental
Planning & Activities
Community Sewer Development Internal
Sanitation Disposal Water Services Transit Totals Service Funds ASSETS
Current assets:

Cash and investments 14,903,878 $ 41,512,583 $ 65,526,128 $ 16,202,391 $ 4,818,063 $ 142,963,043$ 66,334,838 $ Receivables 5,337,502 4,122,724 4,888,274 32,748 17,885 14,399,133 497,527 Due from other governments 384,870 1,470,373 1,855,243 16,526 Inventories 0 908,000
Total current assets 20,241,380 45,635,307 70,414,402 16,620,009 6,306,321 159,217,419 67,756,891 Noncurrent assets:

Cash with fiscal agent-bond accounts 2 2 4
11,555,183
Total restricted assets 0 2 2 0 0 4 11,555,183
Capital assets:

Land 19,076,813 4,749,752 14,235,585 38,062,150 8,872,400 Buildings and improvements 7,685,187 174,748,628 134,877,215 317,311,030 118,893,949 Machinery and equipment 3,399,755 839,517 1,723,806 130,517 6,016,393 12,109,988 56,873,239 Less accumulated depreciation (3,820,625) (60,770,695) (46,165,086) (53,179) (4,640,494) (115,450,079) (82,672,475) Total capital assets (net of
accumulated depreciation) 26,341,130 119,567,202 104,671,520 77,338 1,375,899 252,033,089 101,967,113 Intangible assets 41,022,726 11,618,786 52,641,512 Less accumulated amortization (22,483,309) (3,069,308) (25,552,617) Total intangible assets (net of
accumulated amortization) 18,539,417 8,549,478 27,088,895 Total noncurrent assets 26,341,130 138,106,621 113,221,000 77,338 1,375,899 279,121,988 113,522,296 Total assets 46,582,510 183,741,928 183,635,402 16,697,347 7,682,220 438,339,407 181,279,187

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 1,020,338 260,028 766,063 1,471,799 641,248 4,159,476 1,034,032 Deferred loss on bond refunding 119,619 119,619 0 Total deferred outflows of resources 1,020,338 260,028 885,682 1,471,799 641,248 4,279,095 1,034,032 City of Clovis
Statement of Net Position
Proprietary Funds
June 30, 2022
36 121
AGENDA ITEM NO. 11.

Business-Type Activities-Enterprise Funds
Major Enterprise Funds Nonmajor Governmental
Planning & Activities
Community Sewer Development Internal
Sanitation Disposal Water Services Transit Totals Service Funds

LIABILITIES
Current liabilities:

Accounts payable 639,277 2,178,328 1,124,897 171,697 52,603 4,166,802 3,999,574 Claims and judgments payable 0 2,548,000
Due to other governments 3,171 3,171
Accrued compensated absences 118,600 28,300 76,200 112,600 43,600 379,300 67,800 Deposits and other liabilities 1,400 3,335,879 3,751,663 7,088,942 563,673 Unearned revenue 203,092 316,966 5,738,765 6,258,823 2,537,083 Direct borrowings-currrent 0 2,463,284
Loans payable-current 0 261,519
Revenue bonds-current 2,430,000 2,265,000 4,695,000 280,000 Contracts payable-current 1,151,729 1,151,729
Total current liabilities 962,369 5,788,357 6,801,976 4,352,926 5,838,139 23,743,767 12,720,933 Noncurrent liabilities:

Claims and judgments payable 0 6,173,000
Accrued compensated absences 363,412 86,823 233,444 345,235 133,801 1,162,715 207,529 Direct borrowings 0 11,370,844
Loans payable 0 1,908,905
Revenue bonds (net of discount/premium) 80,257,050 14,078,350 94,335,400 13,493,862 Contracts payable 1,203,845 1,203,845
Landfill closure 5,002,240 5,002,240
Net pension liability 5,376,320 1,193,370 3,820,164 6,866,686 3,285,858 20,542,398 5,544,760 Total noncurrent liabilities 10,741, 972 82,741,088 18,131,958 7,211,921 3,419,659 122,246,598 38,698,900 Total liabilities 11,704,341 88,529,445 24,933,934 11,564,847 9,257,798 145,990,365 51,419,833

DEFERRED INFLOWS OF RESOURCES
Lease related deferred inflows 640,698 774,609 1,415,307 233,828 Pension related deferred inflows 2,399,272 587,420 1,771,955 3,340,118 1,495,224 9,593,989 2,444,555 Deferred gain on bond refunding, net 1,800,329 1,800,329 Total deferred inflows of resources 2,399,272 3,028,447 2,546,564 3,340,118 1,495,224 12,809,625 2,678,383

NET POSITION
Net investment in capital assets 26,341,130 51,263,666 96,997,267 77,338 1,375,899 176,055,300 72,188,699 Restricted for debt service 2 2 4 11,555,183 Unrestricted (deficit) 7,158,105 41,180,396 60,043,317 3,186,843 (3,805,453) 107,763,208 44,471,121 Total net position $33,499,235 92,444,064 $ 157,040,586 $ 3,264,181 $ (2,429,554)$ 283,818,512 128,215,003$ Adjustments to reflect the consolidation of internal service fund activ ities related to enterprise funds. 9,765,757
Net position of business-type activities 293,584,269$
The notes to the financial statements are an integral part of this statement. 37 122
AGENDA ITEM NO. 11.

Business-Type Activities-Enterprise Funds
Major Enterprise Funds Nonmajor Governmental
Planning & Activities
Community Sewer Development Internal
Sanitation Disposal Water Services Transit Totals Service Funds Operating revenues:

Charges for services 23,710,551 $ 22,561,221 $ 25,839,690 $ 10,304,854 $ 48,347 $ 82,464,663$ 62,458,764 $ From other agencies 284,028 558,237 158,787 2,265,010 3,266,062 4,510,313 Other revenues 26,703 32,079 74,317 133,099 2,888,098 Total operating revenues 23,737,254 22,877,328 26,472,244 10,463,641 2,313,357 85,863,824 69,857,175 Operating expenses:

Salaries and benefits 7,439,044 1,664,406 4,949,805 7,471,869 4,027,641 25,552,765 21,650,282 Services, materials and supplies 11,532,612 7,416,704 8,998,937 114,718 1,423,285 29,486,256 28,236,616 Administration 4,063,400 3,191,100 3,768,348 2,472,000 1,225,600 14,720,448 1,809,400 Depreciation/amortization 389,052 5,130,117 3,028,555 17,136 386,869 8,951,729 6,004,387 Total operating expenses 23,424,108 17,402,327 20,745,645 10,075,723 7,063,395 78,711,198 57,700,685 Operating income (loss) 313,146 5,475,001 5,726,599 387,918 (4,750,038) 7,152,626 12,156,490 Nonoperating revenues (expenses):

Interest income 172,066 434,440 759,284 182,536 42,798 1,591,124 498,667 Net increase (decrease) in cash fair value (537,862) (1,365,081) (2,278,561) (568,351) (121,505) (4,871,360) (1,538,229) Interest expense (2,963,900) (685,678) (3,649,578) (488,432) State transit funding 5,169,390 5,169,390
Legal settlement 101,423 101,423
Gain (loss) on sale of capital assets 0 (17,677)
Total nonoperating revenue (expense) (365,796) (3,894,541) (2,103,532) (385,815) 5,090,683 (1,659,001) (1,545,671) Income (loss) before contributions and transfers (52,650) 1,580,460 3,623,067 2,103 340,645 5,493,625 10,610,819 Capital contributions 1,112,433 1,485,694 2,598,127 39,684 Transfers in 150,000 310,000 460,000 8,555,300 Changes in net position 97,350 2,692,893 5,108,761 312,103 340,645 8,551,752 19,205,803 Total net position-beginning 33,401,885 89,751,171 151,931,825 2,952,078 (2,770,199) 109,009,200 Total net position-ending 33,499,235$ 92,444,064$ 157,040,586$ 3,264,181$ (2,429,554)$ 128,215,003$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 4,981,707 Change in net position of business-type activities (page 31) 13,533,459$ The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
38 123
AGENDA ITEM NO. 11.



























7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN

39 124
AGENDA ITEM NO. 11.

Business-Type Activities-Enterprise Funds
Major Enterprise Funds Nonmajor Governmental
Planning & Activities-
Community Sewer Development Internal
Sanitation Disposal Wate r Services Transit Totals Service Funds Receipts from customers and users 22,868,122 $ 22,410,453 $ 25,606,677 $ 10,527,737 $ 1,733,227 $ 83,146,216 $ Receipts for interfund services 60,896,450$
Payments to suppliers (15,254,709) (10,463,856) (12,620,050) (2,421,002) (2,671,673) (43,431,290) (30,401,577) Payments to employees (8,084,837) (1,855,250) (5,496,829) (8,480,690) (4,440,141) (28,357,747) (22,343,687) Other revenues 26,702 316,106 733,976 158,789 2,265,009 3,500,582 7,331,488 Net cash provided/(used) by operating activities (444,722) 10,407,453 8,223,774 (215,166) (3,113,578) 14,857,761 15,482,674 Transfers-in from other funds 150,000 310,000 460,000 8,555,300 Transportation funding-State (384,614) 5,977,951 5,593,337 Net cash provided (used) by noncapital financing activities 150,000 0 0 (74,614) 5,977,951 6,053,337 8,555,300 Acquisition and construction of capital assets (461,456) (1,577,362) (2,263,355) (75,436) (105,097) (4,482,706) (18,398,671) Principal paid on loans, bonds, and capital leases (4,003,301) (2,321,474) (6,324,775) (3,100,334) Interest paid on loans, bonds and capital leases (3,104,129) (664,569) (3,768,698) (488,432) Net cash (used) by capital and related financing activities (461,456) (8,684,792) (5,249,398) (75,436) (105,097) (14,576,179) (21,987,437) Interest and dividends on investments 172,066 434,440 759,284 182,537 42,798 1,591,125 498,668 Increase/(decrease) in fair value of investments (537,862) (1,365,081) (2,278,561) (568,351) (121,505) (4,871,360) (1,538,229) Net cash provided/(used) by investing activities (365,796) (930,641) (1,519,277) (385,814) (78,707) (3,280,235) (1,039,561) Net change in cash and cash equivalents (1,121,974) 792,020 1,455,099 (751,030) 2,680,569 3,054,684 1,010,976 Cash and cash equivalents-beginning of year 16,025,852 40,720,565 64,071,031 16,953,421 2,137,494 139,908,363 76,879,045 Cash and cash equivalents-end of year 14,903,878$ 41,512,585 $ 65,526,130 $ 16,202,391 $ 4,818,063 $ 142,963,047$ 77,890,021 $

CASH FLOW FROM OPERATING ACTIVITIES

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES
City of Clovis
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
40 125
AGENDA ITEM NO. 11.

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

Operating income/(loss) 313,146 $ 5,475,001 $ 5,726,599 $ 387,918 $ (4,750,038)$ 7,152,626 $ 12,156,490 $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation/amortization expense 389,052 5,130,117 3,028,555 17,136 386,869 8,951,729 6,004,387 Landfill closure expense 382,200 382,200
Legal settlement 101,423 101,423
(Increase)/decrease in accounts receivable (1,045,521) (120,258) (441,836) 245,121 (5,196) (1,367,690) (31,460) (Increase)/decrease in due from other governments 0 (8,468) (Increase)/decrease in inventories 0 (52,000)
(Increase)/decrease in deferred outflows - pension 315,242 65,721 218,792 381,256 190,431 1,171,442 327,434 (Increase)/decrease in prepaid items 0 11,835
Increase/(decrease) in accounts payable (41,698) 143,947 (26,384) 102,314 (22,789) 155,390 41,606 Increase/(decrease) in due to other governments 2,624 2,624 Increase/(decrease) in accrued compensated absences 43,758 (10,754) (23,976) 7,749 23,154 39,931 3,024 Increase/(decrease) in unearned revenue 203,092 (22,238) 1,687,452 1,868,306 (1,530,854) Increase/(decrease) in claims and judgments payable 0 (357,000) Increase/(decrease) in deposits 800 173,618 63,404 237,822 Increase/(decrease) in net pension liability (3,376,753) (826,960) (2,494,132) (4,702,009) (2,104,507) (13,504,361) (3,440,364) Increase/(decrease) in deferred inflows - lease (30,510) 208,823 178,313 (58,457) Increase/(decrease) in deferred inflows - pension 2,371,960 581,149 1,752,292 3,304,183 1,478,422 9,488,006 2,416,501 Total adjustments (757,868) 4,932,452 2,497,175 (603,084) 1,636,460 7,705,135 3,326,184 Net cash provided/(used) by operating activities (444,722)$ 10,407,453$ 8,223,774$ (215,166)$ (3,113,578)$ 14,857,761$ 15,482,674$ Noncash investing, capital, and financing activities:

During the year the Sewer Disposal Fund, an enterprise fund, received $1,112,433 in donated assets.

During the year the Water Fund, an enterprise fund, received $1,485,694 in donated assets.

The notes to the financial statements are an integral part of this statement. 41 126
AGENDA ITEM NO. 11.

Redevelopment
Successor
Agency Private-
Purpose Trust
Fund
Custodial
Funds
ASSETS
Cash and investments 874,009$ 193,304$
Cash with agent-restricted 1,066,923
Receivables 343 1,731
Prepaid items 149,561
Capital assets (net of accumulated depreciation) 10,745,158 Total assets 12,835,994 195,035

LIABILITIES
Accounts payable 196,094 13,213
Deposits and other liabilities 474
Tax allocation bonds payable 10,294,819
Total liabilities 10,490,913 13,687

NET POSITION
Restricted for:

Held in trust for Redevelopment Successor Agency Fund 2,345,081 Individuals, organizations, and other governments 181,348 Total net position 2,345,081$ 181,348$
The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
42 127
AGENDA ITEM NO. 11.

Redevelopment
Successor
Agency Private-
Purpose Trust
Fund
Custodial
Funds

ADDITIONS
Property taxes 1,251,797$
Special assessment tax 63,395$
Total additions 1,251,797 63,395

DEDUCTIONS
Services, materials and supplies 10,000
Administration 10,000
Depreciation/amortization 75,563
Interest and other fiscal charges 505,508
Community development 70,848
Total deductions 601,071 70,848
Net increase (decrease) in fiduciary net position 650,726 (7,453) Net position-beginning 1,694,355 188,801
Net position-ending 2,345,081$ 181,348$
The notes to the financial statements are an integral part of this statement.

City of Clovis
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
43 128
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

I. Summary of significant accounting policies

A. Reporting entity

The City of Clovis, California (City) was incorporated on February 27, 1912 as a general law city of the State of California, and as such can exercise the powers specified by the constitution and laws of the State of California.

The City is governed by an elected five-member City Council under the administration of an appointed City Manager. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended components units, although legally separate entities, are, in substance, part of the government’s operations.

1. Blended component units

Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the Ci ty and the component unit; management of the City has operational responsibilities for the component unit; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly.

The Clovis Municipal Development Corporation (Corporation) was established by the Clovis City Council in January 1985 to handle the City’s and the Clovis Communi ty Development Agency’s development of property.

There were no assets, liabilities, equity or activity to report for the current or prior fiscal years.

The Clovis Public Financing Authority (Authority) was es tablished by the Clovis City Council in July 1991 to facilitate the issuance of the City’s debt. There were no assets, liabilities, equity or other activity to report for the current or prior fiscal years.

2. Fiduciary activities

The City presents its fiduciary activity information for as sessing its accountability and financial reporting of the City in their role as fiduciaries. The definition of a “f iduciary” is a person or organization that acts on behalf of another person or persons to manage assets. Fiduciary resp onsibility refers to the obligation that one party has in relationship with another one to act entirely on the other party’s behalf and best interest. It is considered to be the standard of highest care.

B. Government-wide and fund financial statements

The government-wide financial statements (i.e., the stat ement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its components units. The effects of interfund activity have been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function of a segment. Program revenues include 1) charges to cust omers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included am ong program revenues are reported instead as general revenues.

44 129
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide fi nancial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement focus, basis of accounting, and financial statement presentation

The statement of net position report s separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources – This amount represents outflows of resources (consumption of net assets) that apply to future periods and that, theref ore, will not be recognized as an expense until that time.

Deferred Inflows of Resources – This amount represent s inflows of resources (acquisition of net assets) that apply to future periods and that, therefore, are not recognized as a revenue until that time.

The government-wide and proprietary fund fi nancial statements are reported using the “economic resources” measurement focus and the accrual ba sis of accounting. Fiduciary fund financial statements are reported using the accrual basis of accounting but do not have a measurement focus since custodial funds and private- purpose funds are the only fiduciary funds the City reports. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirement imposed by the provider have been met.

Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized when they have been earned and they are both measurable and available. Revenues are consider ed to be available when they are collectible within the current period or soon enough thereafter to pay liabilit ies of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service principal and interest expenditures on general long -term debt, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, postemployment benefits and environmental obligations are recognized later based on sp ecific accounting rules applicable to each, generally when payment is due. General capital asset acquisitions , including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. Issuance of long -term debt and financing through leases are reported as other financing sources.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.

All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

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

The local transportation fund accounts for the City's share of Transportation Development Act (SB 325) funds allocated by the State that are restricted to expenditures for capital street improvements and maintenance and for the deposits by developers for special street improvement projects.

The City reports the following major proprietary funds:

The community sanitation fund accounts for the activi ties of the City’s refuse collection and disposal operations, landfill operations and street sweeping operations.

The sewer disposal fund accounts for the activities of the City’s sanitary sewer system operations. 45 130
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

The wate
r fund accounts for the activities of the City’s water production and distribution operations.

The planning and development services fund accounts for the activities of the City’s engineering operations.

Additionally, the City reports the following fund types:

Internal service funds account for general liability and property damage insurance, fleet management services, retirement, workers’ compensation, and health, unemployment and Medicare insurance, facility maintenance and enhancement, telecommunication and information technology, and other general services provided to other departments or agencies of the City on cost reimbursement bases.

Custodial funds account for assets held by the Ci ty for, certain special assessments collected and distributed on behalf of the districts.

Private-purpose trust funds are used to account for the assets of the former Clovis Community Development Agency during the wind down period.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. The exception to this general rule is payments-in-lieu of taxes. Eliminat ion of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributi ons, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the community sanitation enterprise fund, of the se wer enterprise fund, of the water enterprise fund and of the City's internal service funds are charges to customers for sales and services. The sewer enterprise fund and the water enterprise fund also recognize as operating revenue the portion of developer fees intended to recover the cost of connecting new customers to the system. Operati ng expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciat ion on capital assets: All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are avail able for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed.

D. Assets, liabilities, deferred outflows/inflows,
and net position/fund balance

1. Cash an
d investments
The City maintains a cash and investment pool that is available for use by all funds. This pool utilizes investments authorized by the Governm ent Code and is further defined by the City's investment policy that is reviewed annually by the City Council.

Highly liquid market investments with maturities of 1 year or less at the time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for the securities for which market quotations are readily available.

Authorized investments include deposits in the State of California administered Local Agency Investment Fund, insured certificates of deposits, coll ateralized certificates of deposits, commercial paper, bankers acceptances, 46 131
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

medium term notes, money market mutual funds and securities backed by the U.S. Government. All investments are stated at fair value.

Interest income earned as a result of pooling is distributed to the appropriate funds based on month end cash balances in each fund. Interest income from ca sh and investments with fiscal agents and deferred compensation is credited directly to the related fund.

For purposes of the statement of cash flows, the City considers short term and highly liquid investments (including restricted assets) to be cash and cash equivalents.

The City invests its excess cash principally in U.S. Government Securities, U.S. Treasuries and the State of California Local Agency Investment Fund (LAIF). Invest ments in the LAIF are available for withdrawal on demand.

The City is also required to deposit funds with fiscal agents under the provisions of Revenue Bonds, Contracts and/or Lease Agreements. These funds are invested by the fiscal agent in instruments generally more restrictive than the City's investment policy.

U.S. GAAP defines fair values, est ablishes a framework for measuring fa ir value and estab lishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded fair value in the Statement of Net Position/Balance Sheet, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for i dentical assets and liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted pr ices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

2. Receivables

Billed but unpaid services provided to individuals or non- governmental entities are re corded as "receivables." Services provided to other governmental entities are recorded as "due from other governments." The City's utility enterprise funds include an estimated amount for services rendered but not yet billed as of June 30, 2022, determined by prorating the July 2022 bi-monthly billing.

The City has not experienced any material write-off of receivables; and therefore, an "allowance for bad debts" is not included on the City's balance sheet or statement of net position.

3. Interfund receivables/payables

During the course of operations, interfund receivables and payables transactions arise. These receivables and payables are classified as "due from other funds" or "due to other funds" on the fund financial statements. On the government-wide statement of net position, the "internal balances" represents the amounts receivable/payable between business-type activities and governmental activities. All other interfund transactions have been eliminated on the statement of net position.

4. Inventories

Inventories, consisting of fuel and vehicle parts, are valued at cost.

47 132
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

5. Capital assets/intangible assets

Capital assets, which include property, plant, equipment, ri ght to use and infrastructure assets (roadways), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000, and an estimated useful life of at least three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated a ssets are recorded at estimated acquisition value at the date donated. Intangible assets are valued at historical cost.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Intangible assets include the purchase of sewer capacity ri ghts and water entitlement rights. The City purchased sewer capacity rights from the City of Fresno at the Fresno Regional Waste Water Treatment Plant. The total amount of $41,022,726 is reported in the City’s Sewer Disposal Enterprise Fund. The City purchased water entitlement rights from the Fresno I rrigation District for surface water. The total amount of $11,618,786 reported in the City’s Water Enterprise Fund.

Donated assets include developer donated land as well as the improvements on the land including streets, curbs and gutters, sidewalks, street lighting and landscaping. Included in the total amount of capital grants and contributions on the government-wide statement of activities is $20,532,187 of developer donated assets.

Property, plant a equipment of the primary government is depreciated over the estimated useful lives using the straight-line method, half-year convention. Estimated useful lives are as follows:

Distribution Systems 50 years
Roadways 50
Buildings 20-40
Vehicles 5-20
Right to use 5-35
Other Equipment 3-10

Amortization of intangibles is computed over 40 years using the straight-line method, half-year convention. As the life of the rights have a life of 40 years.

6. Compensated absences

The liability for vested leave (vacation, compensated time off, holiday) earned but not used in governmental funds is expensed and established as a liability and is reported in the government-wide statement of net position in the governmental activities column. Vested leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue. No liability is recorded for non-vesting leave such as sick leave.

7. Long-term liabilities

In the government-wide financial statements, and prop rietary fund types in the fund financial statements, long-term liabilities and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary f und type statement of net pos ition. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

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 repo rted as other financing sources while discounts not withheld from the actual debt proceeds received are reported as debt service expenditures. Discounts withheld from the debt proceeds are reported as other financing uses. 48 133
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

8. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Plan investments are reported at fair value.

The following timeframes are used for pension plan reporting:

C a l P E R S

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021

Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

9. Fund balances

In the fund financial statements, go vernmental funds report components of fund balance based on constraints on the specific purposes for which amounts can be sp ent. “Nonspendable” fund balance is not in a spendable form or has a requirement to maintain intact. “Restricted” fund balance has externally enforceable limitations on its use such as restrictions from outside parties such as creditors, grantors, contributors, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. “Committed” fund balance is constrained by limits imposed by the government’s highest level of decision-making and can only be removed or modified by a formal action by that authority . “Assigned” fund balance is limited by City Council, the City Manager or the designated department head as dele gated by City Council. “Unassigned” fund balance is the residual net resources.

The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other t han the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

The City will spend the funds restricted for their purpose within those funds first followed by assigned funds for their intended purposes prior to spending any unassigned fund s. The City Council has established a target of a minimum unassigned fund balance for any operational fund is 10% of the budgeted expenditures with the goal for unassigned fund balance of up to 15% of budgeted ex penditures unless capital borrowing or extraordinary fiscal conditions require higher levels of unassigned fund balance be maintained.

The local transportation fund is the City’s only major sp ecial revenue fund. This fund accounts for the capital street projects paid for out of the City's share of Transportation Development Act (SB 325) funds allocated by the state, 1/2 cent sales tax for transportation, Special Gas Tax Select Street funds, and federal funding sources under the Federal Intermodel Surface Transportation E fficiency Act. In addition, funds are transferred from the Developer Trust Fund as reimbursements are made for developer-financed projects.

49 134
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

10. Net Position

In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt, net of deferred refunding, that are attributable to the acquisition, construction, or improvement of those assets.

Restricted – This component of net position consists of restricted assets reduced by lia bilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of re sources that are not incl uded in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

11. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

12. Deferred outflows/inflows of resources

In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this categor y. It is the deferred charge on refunding reported in the government-wide statement of net position, and deferred amo unts related to pension. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price.

This amount is deferred and amortized over the shorte r of the life of the refunded or refunding debt. The deferred amounts related to pension relate differences between estimated and actual investment earnings, changes in actuarial assumptions, and other pension related changes.

13. Leases

Lessee: The City has a policy to recognize a le ase liability and a right -to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes leas e liabilities with an initial, individual value of $10,000 or more.

At the commencement of a lease, the Ci ty initially measures the lease liab ility 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 me asured 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 ho w 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 le ssor 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.
50 135
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

 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 and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right to use along with other capital assets and lease li abilities are reported with long-term debt on the statement of net position.

Lessor: The City is a lessor for a leases of a building and land at four locations. The City recognizes a lease receivable and a deferred inflows of resources in both the government-wide and fund financial statements.

At the commencement of a lease, the City initially measures the lease re ceivable 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 inflows 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 inflows 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 its estimated incremental bor rowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that w ould 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.

14. Implementation of New GASB Pronouncements

The requirements of the following ac counting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2022. The financial statements included herein apply the requirements and provisions of these statements, in cluding necessary retroactive adjustments to financial statement classifications and presentations.

Implementation of New GASB Pronouncements for the Year Ended June 30, 2022

GASB Statement No. 87

In June 2017, GASB issued Statement No. 87, Leases . This Statement increa ses the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and reco gnized as inflows of resource s or outflows of resources based on the payment provisions of the contract. It es tablishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resour ces, thereby enhancing the relevance and consistency of information about government’ leasing activities.

51 136
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

GASB State
ment No. 89
In June 2018, GASB issued Statement No. 89, Accounting for Interest Co st Incurred before the End of a
Construction Period. This Statement establishes account ing requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-No vember 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requi res that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurem ent focus. As a result, interest cost incurred before the end of a construction period w ill not be included in the historical co st of a capital as set reported in a business-type activity or enterprise fund. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 92
In January 2020, GASB issued Statement No. 92, Omnibus 2020.

The primary objectives of this Statement are
to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing practice issues that have been identified durin g implementation and application of certain GASB Statements. Application of this statement is effective for t he City’s fiscal year ending June 30, 2022.

GASB Statement No. 93
In March 202
0, GASB issued Statement No. 93, Replacem ent of Interbank Offered Rates. Some governments have entered into agreements in which variable payment s made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Ra te (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fa llback provisions related to the reference rate. The objective of this Statement is to address those and ot her accounting and financial reporting implications that result from the replacement of an IBOR. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 97
In June 2020, GASB issued Statement
No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a S upersession of GASB Statement No. 32 . The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defin ed contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plan s or OPEB plans (other employee benefit plans) as fiduciary component units in fidu ciary fund financial statem ents; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Application of this statement is effective fo r the City’s fiscal year ending June 30, 2022.
52 137
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Upcoming Governmental Accounting Standards Implementation

GASB Statement No. 91

In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligat ion is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements as sociated with conduit debt obligations; and improving required note disclosures. Application of this statement is effective for t he City’s fiscal year ending June 30, 2023.

GASB Statement No. 94

In March 2020, GASB issued Statement No. 94, Public-Pri vate and Public-Public Part nerships and Availability Payment Arrangements. The primary objective of this St atement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a gove rnment (the trans feror) contracts wi th an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastruc ture or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 96

In May 2020, GASB issued Statement No. 96, Subscripti on-Based Information Technology Arrangements. This Statement provides guidance on the accounting and fi nancial reporting for subscription-based information technology arrangements (SBITAs) for government end us ers (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the c apitalization criteria for outlays other than subscription payments, including implementation co sts of a SBITA; and (4) requires not e disclosures regarding a SBITA.

Application of this statement is effective for The City’s fiscal year ending June 30, 2023.

GASB Statement No. 99

In April 2022, GASB issued Statement No. 99, Omnibus 2 022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementatio n and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Application of this statement is effective for The City’s fiscal year ending June 30, 2023.

GASB Statement No. 100

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of th is Statement is to enhance accounting and financial reporting requirements for accounting changes and error co rrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for The City’s fiscal year ending June 30, 2024.

GASB Statement No. 101

In June 2022, GASB issued Statement No. 101, Compensated Absences. The obj ective of this Statement is to better meet the information needs of financial statem ent users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain prev iously required disclosures. Application of this statement is effective for The City’s fiscal year ending June 30, 2025. 53 138
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

II. Reconciliation of government-wide and fund financial statements

A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net position

The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net position-governmental activities as reported in the government-wid e statement of net position. One element of that reconciliati on explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not report ed in the funds.” The detai ls of this ($95,450,877) difference are as follows:

Pension related items of $97,850,765
(net of $6,955,282 reported in Internal Service Funds) 90,895,483 $ Accrued compensated absences of $4,830,722
(net of $275,328 reported in Internal Service Funds) 4,555,394 Net adjustment to reduce fund balance-total governmental funds to arrive at net position-governmental activities 95,450,877$

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities

The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances-total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.”

The details of this $109,468 difference are as follows:

Capital Outlay 12,760,383$
Depreciation expense (net of $6,004,387 reported in Internal Service Funds) (12,650,915) Net adjustment to decrease net changes in fund balance-total governmental funds to arrive at changes in net position-governmental activities 109,468$

Another element of that reconciliation states that “The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net position.” Donated capital assets increase net position in the statement of activities, but do not appear in the governmental funds because they are not financial resources.

The details of this $12,760,383 difference are as follows:

General government capital asset additions 51,691,241$
Internal service fund capital asset additions (18,398,671) Donated capital asset additions (20,532,187)
Net capital outlay 12,760,383$

54 139
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Another element of that reconciliation states that “Some expenses reported in the st atement of activities do not require the use of current financial resources and theref ore are not reported as expenditures in governmental funds.” The details of this $4,087,514 difference are as follows:

Pension related items (Net of ($696,430) reported in Internal Service Funds) (4,101,988)$ Compensated absences (Net of $3,023 reported in Internal 14,474 Service Funds)
Net adjustment to decrease net changes in fund balance-total governmental funds to arrive at changes in net position-governmental activities (4,087,514)$

III. Stewardship, compliance, and accountability

A. Budgetary information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year-end.

On or before the second week of March of each ye ar, all departments of the City submit request for appropriations to the City Manager so that a budget ma y be prepared. On or before the third Monday in May, the proposed budget is presented to the City council fo r review. The council holds public hearings and a final budget must be adopted no later than June 30.

The appropriated budget is prepared by fund and depa rtment. The City Manager may make transfers of appropriations between departments within a specific fund of up to $5,000 and up to $2,500 from any established reserves. Transfers in exce ss of those amounts require council ac tion. No action is required at any level lower than the department level. The legal level of budgetary control is the department level. During the year, supplementary appropriations approved by the council were necessary for some departments.

B. Deficit fund equity

Government-Wide Financial Statements
At June 30, 2022, deficit unrestricted net position was reported for governm ental activities in the amount of $(22,188,189). The deficit is the result of reporting ne t pension liabilities of $86,157,247 in the government-wide financial statements. City management believes the pres ent cash aggregate position of the General Fund is adequate to meet current needs.

Proprietary Funds
The Transit Fund has a deficit net position of $(2,429,554) as of June 30, 2022. The deficit is the result of reporting net pension liabilities of $3,285,858 in the proprietary fund financial statements. City management believes the present cash aggregate position of the Transit Fund is adequate to meet current needs.

55 140
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

IV. Detailed notes on all funds

A. Cash and investments

Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:

Primary Government:

Cash and investments 313,900,413$
Cash and investments - restricted 11,786,887
Fiduciary funds:

Cash and investments 1,067,313
Cash and investments with agent - restricted 1,066,923
Total cash and investments 327,821,536$

Fair value of cash and investments based on quoted market prices . The City categorizes its fair value measurements within the fair value hierarchy established by GASB Statement No. 72. This hierarchy recognizes three tiers, outlined as follows:

 Level 1: Investments reflect prices quoted in active markets;  Level 2: Investments reflect prices that are base d on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and,  Level 3: Investments reflect pric es based upon unobservable sources.

The table below presents the fair va lue measurements of investments recognized in the accompany statements of net position at June 30, 2022:

Fair Measurement
Value Input
Cash on hand 8,185 $ N/A
Deposit with financial institution 6,738,952
Investments:

Money Market Funds 71,690,282 N/A
Certificates of Deposit 12,495,000 N/A
Municipal Securities 25,000,000 N/A
U.S. Agency Securities 124,523,575 Level 2
Local Agency Investment Fund (LAIF) 74,511,731 N/A Held by Bond Trustee:

Money Market Funds 12,853,811 N/A
Total 327,821,536 $

Investment securities classified in Level 2 of the fair value hierarchy are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors for these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

Investments Authorized by the California Govern ment Code and the City’s Investment Policy. The table below identifies the investment types that are authorized for the City of Clovis by the California Government Code (or the City of Clovis investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City of Clovis Inve stment Policy, where more restrictive) that address interest rate risk, credit risk and concentration of cr edit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreement s of the City of Clovis, rather than the general provisions of the California Government Code or the City of Clovis’ investment policy. 56 141
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Maximum Maximum
Percentage Investment
Maximum of Portfolio or One Issuer
Authorized Investment Type Maturity or Amount* or Amount U.S. Treasury Obligations 3 years None None
U.S. Agency Securities 3 years None None
Bankers Acceptances 180 days 30% 30%
Commercial Paper 270 days 15% 10%
Negotiable Certificates of Deposit 3 years 30% Legal Limit Repurchase Agreements 1 year None None
Medium-Term Notes 3 years 30% None
Qualified Mutual Funds N/A $2,000,000 $2,000,000
Money Market Accounts N/A $10,000,000 $10,000,000
Local Agency Investment Fund (LAIF) N/A None None
* Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.

Investments Authorized by Debt Agreements. Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment ty pes that are authorized for investments held by bond trustee. The table also identifies certain pr ovisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Disclosures 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 in terest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow a nd liquidity needed for operations. The City monitors the interest rate risk inherent in its por tfolio by measuring the weighted average maturity of its portfolio. The City investment policy states that no investment can have a maturity in excess of three years unless approved by the City Manager.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio or One Issuer U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Bankers Acceptances 180 days 30% 30%
Commercial Paper 270 days 15% 10%
Qualified Mutual Funds N/A None None
Money Market Accounts N/A None None
Local Agency Investment Fund (LAIF) N/A None None

Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations. The City’s investments do not include any investments that are highly sensitive to interest rate fluctuatio ns (to a greater degree than already indicated in the information provided above).

Disclosures 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 in vestment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
57 142
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Weighted Average
Investment Type Amount Maturity (in years)
Money Market Funds 71,690,282 $ N/A
Municipal Securities 25,000,000 1.15
Certificates of Deposit 12,495,000 1.45
U.S. Agency Securities 124,523,575 1.55
Local Agency Investment Fund (LAIF) 74,511,731 N/A
Held by Bond Trustee:

Money Market Funds 12,853,811 N/A
Total 321,074,399$
Concentration of Credit Risk. The investment policy
of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Govern ment Code. Investments in any one issuer (other than U.S. Treas ury securities and external investment pools) that represent 5% or more of total City of Clovis’ investments are as follows:

Reported Percent of
Issuer Investment Type Amount Total Invested
FFCB Federal Agency Securities 23,000,000$ 17.3%
FHLB Federal Agency Securities 91,500,000 69.0% FAMCMTN Federal Agency Securities 17,500,000 13.2% Custodial Credit Risk. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recove r its deposits or will not be able to recover collateral securities that are in the possession of an outside party. T he custodial credit risk for investments is the risk that, in the event of the failure of the brok er or dealer to a transa ction, a government will not be able to recover the value of its investments or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requi rements that would limit the exposure to custodial credit risk for deposits or inve stments, other than the following provisions for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit) . The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2022, no City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. In addition, as of June 30, 2022, no investments were held by the same broker dealer (counterparty) that was used by the City to purchase the securities. 58 143
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Disclosures 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. As of year-end, the average life-month end maturity of the investments contained in the LAIF investment pool is approximately 311.

Investment in State Investment Pool. The City’s investments with Local Agency Investment Fund (LAIF) at June 30, 2022 included a portion of the pooled f unds invested in Structured Notes and Assets-Backed Securities. These investments included the following:

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

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

As of June 30, 2022, the City had $74,511,731 invested in LAIF, which had invested 1.14% of the pool investment funds in Structured Notes and Asset-Backed Securities and 0.74% of pool investment funds in Short-term Asset-Backed Commercial Paper.

The fair value of the City’s position in the LAIF pool is the same as the value of the pool shares.

The Pooled Money Investment Board provides oversight to the State Treasurer’s pooled investment program. The purpose of the board is to design and administer an effective cash management and investment program, using all monies flowing through the State Treasurer’s Office bank accounts and keeping all available funds invested in a manner consistent with the goals of safety, liquidity, and yield. The Pooled Money Investment Board is comprised of the State Treasurer as chair, the State Controller, and the Director of Finance. The investment program is not registered with the Securities and Exchange Commission as an investment company.

The State Treasurer’s Office reports its investments at fair value. The fair value of securities in the State Treasurer’s pooled investment program generally is based on quoted market prices. The value of the deposits in the State Treasurer’s pooled investment program, including the Local Agency Investment Fund, is equal to the dollars deposited in the program.

Certain funds have elected to participate in the pooled investment program even though they have the authority to make their own investments. Others may be required by legislation to participate in the program; as a result, the deposits of these funds or accounts may be considered involuntary. However, these funds or accounts are part of the State’s reporting entity. The remaining participation in the pool, the Local Agency Investment Fund, is voluntary.

B. Property taxes

Secured property taxes become a lien on the property as of January 1 and are levied in two equal installments:
the first due November 1 and delinquent on December 11, and the second due February 1 and delinquent April 11. Property taxes on unsecured property ar e due on the lien date of March 1 and become delinquent on September 1. The County of Fresno is responsible fo r the assessment, collection and apportionment for all jurisdictions within the County, including the City.

59 144
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

C. Receivables

Receivables as of June 30, 2022 for the City’s individu al major funds and nonmajor, internal service, and fiduciary funds in the aggregate, are as follows:

Total Internal
Local Nonmajor & Governmental Service Fiduciary
General Transportation Other Funds Funds Funds Funds
Interest 36,627$ 77,852 $ 18,026 $ 132,505 $ 76,840 $ 600 $ Taxes 1,072,725 2,170 1,074,895 1,474 Loans 50,174 3,333,518 3,383,692 30,068 Accounts 2,143,007 183,999 12,161 2,339,167 143,821 Lease 246,798
3,252,359$ 312,025$ 3,365,875$ 6,930,259$ 497,527$ 2,074$ Planning & Total
Community Sewer Development Proprietary
Sanitation Disposal Water Services Transit Funds
Interest 20,602$ 54,937$ 89,084$ 22,558$ 8,041$ 195,222$ Loans 20,537 8,663 29,200
Accounts 5,316,900 3,359,389 3,963,433 10,190 9,844 12,659,756 Lease 687,861 827,094 1,514,955
5,337,502$ 4,122,724$ 4,888,274$ 32,748$ 17,885$ 14,399,133$

Lease receivables consists of agreements with cellular network companies and PG&E for the right to use land at various locations throughout the City. The terms of these arrangements range from 6 to 23 years and the interest rate on these is calculated at the City’s fiscal year 2022 borrowing rate of 2.475%. This is the All-in True Interest Cost rate derived from the City’s most recent bond issuance from fiscal year 2021.

D. Interfund receivables, payables and transfers

Interfund balances for the purpose of the government -wide financial statements have been eliminated. The composition of interfund balances in the fund level statements as of June 30, 2022, is as follows:

Interfund transfers:

Transfers In Transfers Out Purpose Amount
Enterprise Fund Capital Project Fund Development capital cost 150,000$ Internal Service Fund General Fund Debt service 747,000 Internal Service Fund General Fund Operating cost 2,558,000 Internal Service Fund General Fund Capital projects 2,985,000 Internal Service Fund General Fund Fleet replacement costs 2,265,300 Enterprise Fund General Fund Operating cost 310,000
Total transfers 9,015,300$

60 145
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

E. Capital assets and intangible assets

Summary of change in capital assets for the year ended June 30, 2022 was as follows:

Beginning Retirements/ Ending
Balance Additions Adjustments Balance
Government activities:

Capital assets, not being depreciated:

Land 264,065,286$ 12,695,703$ 276,760,989$
Capital assets, being depreciated:

Buildings and improvements 128,052,965 18,992,219 147,045,184 Right to use direct borrowings buildings 17,879,458 17,879,458 Machinery and equipment 49,867,028 1,851,617 (318,794)$ 51,399,851 Right to use direct borrowings equipment 8,458,716 8,458,716 Road network 404,208,653 18,151,702 422,360,355 Total capital assets being depreciated 608,466,820 38,995,538 (318,794) 647,143,564 Less accumulated depreciation for
Buildings and improvements (49,004,581) (3,680,121) (52,684,702) Right-to-use leased buildings (5,936,801) (617,464) (6,554,265) Machinery and equipment (34,814,897) (2,315,489) 301,117 (36,829,269) Right-to-use leased equipment (4,523,747) (639,746) (5,163,493) Road network (149,510,043) (11,402,482) (160,912,525) Total accumulated depreciation (243,790,069) (18,655,302) 301,117 (262,144,254) Total capital assets,
being depreciated, net 364,676,751 20,340,236 (17,677) 384,999,310 Governmental activities
capital assets, net 628,742,037$ 33,035,939$ (17,677)$ 661,760,299$ Beginning Ending
Balance Additions Retirements Balance
Business-type activities:

Capital assets, not being depreciated:

Land 37,937,477$ 124,673$ 38,062,150$ Capital assets, being depreciated:

Buildings and improvements 312,801,675 4,509,355 317,311,030 Machinery and equipment 11,627,306 482,682 12,109,988 Total capital assets being depreciated 324,428,981 4,992,037 329,421,018 Less accumulated depreciation for
Buildings and improvements (99,982,037) (6,781,652) (106,763,689) Machinery and equipment (7,923,942) (762,448) (8,686,390) Total accumulated depreciation (107,905,979) (7,544,100) (115,450,079) Total capital assets,
being depreciated, net 216,523,002 (2,552,063) 213,970,939 Intangible assets, being amortized 50,677,389 1,964,123 52,641,512 Less accumulated amortization (24,144,988) (1,407,629) (25,552,617) Business-type activities intangible
assets, net 26,532,401 556,494 27,088,895 Business-type activities
capital assets, net 280,992,880$ (1,870,896)$ 0$ 279,121,984$ 61 146
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Dep
reciation/amortization expense was charged to functions as follows:

Governmental activities depreciation expense:

General government 64,923$
Public safety 52,438
Transportation 11,483,957
Community Development 58,506
Cultural and recreation 991,091
Capital assets held by the government’s internal service funds are charged to the various functions based on their usage of the asset 6,004,387 Total governmental activities depreciation expense 18,655,302$ Business-type activities depreciation/amortization:

Community Sanitation 389,052$
Sewer Disposal 5,130,117
Water 3,028,555
Planning & Development Services 17,136
Transit 386,869
Total business-type activities depreciation/amortization expense 8,951,729$ Donated assets to governmental activities consisted of $20,532,187 of which the majority is donated to the City by developers for streets. Donated assets to business- type activities consisted of $2,598,127, which represents sewer and water infrastructure donated by developers.

Fiduciary funds capital assets
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:

Land 9,087,336$ 9,087,336$
Capital assets, being depreciated:

Buildings and improvements 2,687,521 2,687,521
Total capital assets being depreciated 2,687,521 2,687,521 Less accumulated depreciation for
Buildings and improvements (954,136) (75,563)$ (1,029,699) Total accumulated depreciation (954,136) (75,563) (1,029,699) Total capital assets,
being depreciated, net 1,733,385 (75,563) 1,657,822 Fiduciary funds
capital assets, net 10,820,721$ (75,563)$ 0 $
10,745,158$
Dep
reciation expense for the year ended June 30, 2022 was $75,563. 62 147
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

F. Long-term liabilities

Summary of changes in long-term liabilities for the year ended June 30, 2022 was as follows:

Balance Balance Due in Due in more
7/1/2021 Additions Reductions 6/30/2022 One Year than One Year Governmental Activities:

Revenue bonds 13,355,000$ 0 $ (150,000)$ 13,205,000$ 280,000 $ 12,925,000$ Less deferred amounts:
(Discounts)/premiums 588,940 (20,078) 568,862 568,862 Total bonds payable 13,943,940 0 (170,078) 13,773,862 280,000 13,493,862 Loans payable 2,439,906 (269,482) 2,170,424 261,519 1,908,905 Direct borrowings 16,494,902 0 (2,660,774) 13,834,128 2,463,284 11,370,844 Deposits & other liabilities 30,506,271 9,536,293 (2,216,087) 37,826,477 37,826,477 Claims and judgments 9,078,000 3,120,979 (3,477,979) 8,721,000 2,548,000 6,173,000 Compensated absences 4,813,225 2,185,709 (2,168,212) 4,830,722 1,188,400 3,642,322 Net pension liability 124,652,253 (38,495,006) 86,157,247 86,157,247 Total governmental
activities 201,928,497$ 14,842,981 $ (49,457,618) $ 167,313,860 $ 44,567,680 $ 122,746,180 $ Balance Balance Due in Due in more
7/1/2021 Additions Reductions 6/30/2022 One Year than One Year Business-Type Activities:

Revenue bonds 93,750,000$ (4,475,000) $ 89,275,000 $ 4,695,000 $ 84,580,000 $ Less deferred amounts:
(Discounts)/premiums 10,505,562 (750,162) 9,755,400 9,755,400 Total bonds payable 104,255,562 (5,225,162) 99,030,400 4,695,000 94,335,400 Contracts payable 3,455,186 (1,099,612) 2,355,574 1,151,729 1,203,845 Landfill closure 4,620,040 382,200$ 5,002,240 5,002,240 Compensated absences 1,502,084 1,096,525 (1,056,594) 1,542,015 379,300 1,162,715 Deposits & other liabilities 6,851,120 2,362,724 (2,124,902) 7,088,942 7,088,942 Net pension liability 34,046,759 (13,504,361) 20,542,398 20,542,398 Total business-type
activities 154,730,751$ 3,841,449 $ (23,010,631)$ 135,561,569 $ 13,314,971 $ 122,246,598 $ Classification
Classification

Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental ac tivities. At year end $275,329 of internal service funds compensated absences are included in the above amoun ts. Included in deposits and other liabilities in business-type activities are utility customer deposits of $3,031,382 and miscellaneous deposits and other liabilities of $4,057,560. For the governmental activities, accrue d compensated absences are generally liquidated by the general fund. In addition, in prior years the employee benefit fund has be used to liquidate pension liabilities. The reductions in Net Pension Liabilities are due to an increase in the current fiscal year net investment income for both governmental activities of $37,384,459 and business-type activities in the amount of $35,205,099. 63 148
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Governmental activities long-term debt

1. Revenue bonds

The City issues revenue bonds to provide funds for the acquisition and construction of major capital facilities.

The current bond outstanding has a maturity of 30 years.

In April 2021, the City issued landmark square revenue bonds in the amount of $13,355,000. The net proceeds of $13,824,812 (after the original issue premium of $592,287 and payment of $247,287 in underwriting fees, insurance, and other is suance costs) from the bonds will be used to construct t he senior center as part of the Landmark Square project. The bonds have interest rates va rying from 2.50% to 4.00% and the final payment is scheduled for November 2051. The revenue bonds contai n an acceleration clause that allows the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs.

Revenue bonds at June 30, 2022, consisted of the following:

Balance Balance Due in Due in more
7/1/2021 Additions Reductions 6/30/2022 One Year than One Year 2021 landmark square 13,355,000$ 0$ (150,000)$ 13,205,000$ 280,000 $ 12,925,000$ Total revenue bonds 13,355,000$ 0$ (150,000)$ 13,205,000$ 280,000 $ 12,925,000$ Classification

The annual debt service requirements for the revenue bonds outstanding at June 30, 2022, are as follows:

Year ending June 30, P rincipal Interest Total
2022 280,000 $ 376,300 $ 656,300 $ 2023 285,000 366,400 651,400 2024 300,000 354,700 654,700 2025 310,000 342,500 652,500 2026 325,000 329,800 654,800 2027-2031 1,825,000 1,440,000 3,265,000 2032-2036 2,165,000 1,099,400 3,264,400 2037-2041 2,470,000 797,038 3,267,038 2042-2046 2,770,000 486,000 3,256,000 2047-2051 2,475,000 125,812 2,600,812 Total 13,205,000 $ 5,717,950 $ 18,922,950 $ Revenue Bonds

64 149
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

2. Loans payable

The City issues loans to provide funds for improvements at various City buildings. The loans have maturities ranging from 8 to 16 years. Loans payable at June 30, 2022, are as follows:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Governmental Activities
2011 energy loan payable 466,715$ 3.00% 2026 320,306 $ 2012 energy loan payable 34,157 0.00% 2022 0
2014 energy loan payable 32,414 1.00% 2024 16,368 2016 energy loan payable 89,729 0.00% 2025 51,275 2019 energy loan payable 1,741,854 1.00% 2035 1,524,377 2020 energy loan payable 157,550 0.00% 2030 124,669 2020 energy loan payable 195,011 0.00% 2026 133,429 Total loans payable 2,170,424 $

The annual debt service requirements for the loans payable outstanding at June 30, 2022, are as follows:

Governmental Activities
Year ending June 30, Principal Interest Total
2022 261,519$ 27,576$ 289,095$
2023 264,111 19,850 283,961
2024 253,113 17,091 270,204
2025 244,193 12,547 256,740
2026 141,364 10,477 151,841
2027-2031 633,724 34,914 668,638 2032-2036 372,400 4,890 377,290 Total 2,170,424$ 127,345$ 2,297,769$
Loans Payable

The following is an analysis of the assets acquired with the proceeds as of June 30, 2022:

Buildings and improvements 2,446,360$
Less accumulated depreciation (897,357)
Total 1,549,003$

65 150
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

3. Notes from Direct Borrowings

The City issues notes from direct borrowings to provide funds for the acquisition of public safety vehicles and governmental buildings. The maturity dates range from 5 to 35 years. The City Clovis also recognizes a intangible right to use direct borrowing assets. The City of Clovis recognizes right to use direct borrowings with an initial, individual value of $10,000 or more.

During the 2020-21 fiscal year, the City issued a dire ct borrowing note in the am ount of $2,340,000. The note pays principal and interest semiannually in December 5 an d June 5, at an interest rate of 1.71%. The proceeds from the note are being used for the purchase of 21 police vehicles and one fire truck.

Notes from direct borrowings at June 30, 2022, are as follows:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Governmental Activities
2014 corp yard 14,377,528$ 3.10% 2027 5,880,117$ 2007 fire station #1 6,090,000 4.00% 2022 0
2011 solar project 2,454,100 4.95% 2031 1,400,330 2013 animal shelter 3,000,000 4.00% 2034 1,865,573 2014 safety vehicles 1,795,000 1.86% 2024 152,125 2015 PD/fire comm tower 1,810,000 2.35% 2026 682,040 2015 solar project 2,000,000 3.48% 2035 1,494,055 2016 safety vehicles 1,460,000 1.00%-3.00% 2026 188,785 2018 safety vehicles 573,000 3.00% 2023 121,525 * 2019 safety vehicles 1,125,000 3.23% 2023 356,618 * 2021 safety vehicles 2,340,000 1.71% 2030 1,692,960 Total direct borrowings 13,834,128$
*Note: These direct borrowings contain a provision that in an event of default, outstanding amounts become immediately due if the City is unable to make payment.

The debt service requirements for the City notes from direct borrowings are as follows:

Year ending June 30, Principal Interest Total
2023 2,463,284$ 437,716$ 2,901,000$
2024 2,292,119 353,209 2,645,328
2025 2,154,728 287,846 2,442,574
2026 1,902,490 223,881 2,126,371
2027 1,811,087 164,271 1,975,358
2028-2032 2,642,202 357,128 2,999,330 2033-2036 568,218 27,156 595,374 Total 13,834,128$ 1,851,207$ 15,685,335$
Direct Borrowings

66 151
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

The following is an analysis of the land, structures, and equipment of the direct borrowings as of June 30, 2022:

Land, structures and equipment 2,057,359$
Less accumulated depreciation (668,642)
Total 1,388,717$

Business-type activities long-term debt

1. Revenue bonds

The City issues revenue bonds to provide funds for the acquisition and construction of major capital facilities.

The revenue bonds have maturities of 14-20 years.

Revenue bonds at June 30, 2022, consisted of the following:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Governmental Activities
2013 wastewater revenue refunding bonds 12,500,000$ 2.00%-5.00% 2028 8,415,000$ 2015 wastewater revenue refunding bonds 21,600,000 2.00%-3.75% 2035 20,630,000 2017 wastewater revenue refunding bonds 50,710,000 2.00%-5.00% 2038 44,830,000 2014 water revenue refunding bonds 31,810,000 2.00%-4.25% 2028 15,400,000 Total revenue bonds 89,275,000$

The annual debt service requirements for the revenue bonds outstanding at June 30, 2022, are as follows:

Busiess-Type Activities:

Year ending June 30, Principal Interest Total
2023 4,695,000$ 4,220,000$ 8,915,000$ 2024 4,940,000 3,979,893 8,919,893 2025 6,040,000 3,709,144 9,749,144 2026 7,205,000 3,384,369 10,589,369 2027 7,570,000 3,023,444 10,593,444 2028-2032 24,590,000 10,412,433 35,002,433 2033-2037 22,910,000 5,477,309 28,387,309 2038-2041 11,325,000 573,000 11,898,000 Total 89,275,000$ 34,779,592$ 124,054,592$ Revenue Bonds

The following is an analysis of the improvements ma de with the proceeds of these bonds through June 30, 2022:

Land, structures and equipment 140,291,752$
Less accumulated depreciation (50,736,630)
Total 89,555,122$

67 152
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

2013 wastewater revenue refunding bonds

In July 2013, The City issued wastewater revenue refunding bonds in the amount of $12,500,000. The net proceeds of $12,698,281 (after the original issue premium of $596,726 and payment of $398,445 in underwriting fees, insurance, and other issuance costs) from th e bonds were used to refund the $13,745,000 aggregate principal amount outstanding on the City’s 1998 wastewater bonds. The aggregate debt service payments of the new debt are $2,519,935 less than the old debt. The bonds have interest rates varying from 2.00% to 5.00% and the final payment is scheduled for August 2028.The is suance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $644,000. The wastewater revenue refunding bonds contain an acceleration clause that allows the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs.

2015 wastewater revenue refunding bonds

In August 2015, The City refinanced the 2005 wastewat er revenue bonds and issued 2015 wastewater revenue bonds in the amount of $21,600,000. The net proceeds of $22,881,723 (after the original issue premium of $1,652,032 and payment of $370,309 in underwriting fees, insurance, and other issuance costs) from the bonds were used to refund the $24,885,000 aggregate princi pal amount outstanding on the City’s 2005 wastewater bonds. The aggregate debt service payments of the new debt are $10,852,200 less than the old debt. The bonds have interest rates varying from 2.0% to 3.75% and the final payment is scheduled for August 2035. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $4,410,265. The wastewater revenue bonds contain an acceleration clause that allo ws the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs.

2017 wastewater revenue refunding bonds

In August 2017, The City refinanced the 2007 wastewat er revenue bonds and issued 2017 wastewater revenue bonds in the amount of $50,710,000. The net proceeds of $59,836,790 (after the original issue premium of $9,687,427 and payment of $560,637 in underwriting fees, insurance, and other issuance costs) from the bonds were used to refund the $59,620,000 aggregate princi pal amount outstanding on the City’s 2007 wastewater bonds. The aggregate debt service payments of the new debt are $18,669,931 less than the old debt. The bonds have interest rates varying from 2.0% to 5.0% and the final payment is scheduled for August 2038. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $8,750,978. The wastewater revenue bonds contain an acceleration clause that allo ws the bondholders to accelerate payment of the entire principal amount to become immediately due if default in payment occurs.

2014 water refunding revenue refunding bond

In July 2013, The City issued water revenue refunding bonds in the amount of $31,810,000. The net proceeds of $33,780,909 (after the original issue premium of $2,427,739 and payment of $456,830 in underwriting fees, insurance, and other issuance costs) from the bonds were used to refund the $33,895,000 aggregate principal amount outstanding on the City’s 2003 water revenue bonds. The aggregate debt service payments of the new debt are $4,614,844 less than the old debt. The bonds have interest rates varying from 2.0% to 4.25% and the final payment is scheduled for March 2038. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the present value of the old debt and new debt service payments) of approximately $2,651,000. The wastewater revenue bo nds contain an acceleration clause that allows the bondholders to accelerate payment of the entire prin cipal amount to become immediately due if default in payment occurs.
68 153
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

2. Contracts payable

The City enters into contracts to provide funds to provide sewer services. The City has currently entered into one contract and the contract has a maturity of 30 years.

Contracts payable at June 30, 2022, consisted of the following:

Original Interest Final Outstanding
Borrowing Rates Maturity at Year-end
Business-type Activities
1993 wastewater renovation 12,423,873$ 3.50%-6.25% 2024 2,355,574$ Total revenue bonds 2,355,574$

1993 wastewater renovation

The City has entered into a contract with the City of Fresno to purchase capacity rights in the form of participation in the cost of sewer system improvem ents. These improvements include the renovation and expansion of the Fresno Clovis Regio nal Wastewater Treatment Plant. The 1993 contract is for the City’s share of the 1993 renovation of the Fresno Clovis Regional Wastewater Treatment Plant. The underlying City of Fresno 1993 Revenue Bonds on which the City of Clovis’ contract payable amount is based have interest rates varying from 3.50%-6.25% and the final payments are scheduled for September 2023. The City’s $12,423,873 share of the renovation is capitalized as an intangible as set in the Sewer Disposal Fund, an enterprise fund, as disclosed in Note I. D. 5.

The 1993 waste water renovation contract debt service requirements to maturity are as follows:

Enterprise Activities:

Year ending June 30, Principal Interest Total
2023 1,151,729 $ 80,087 $ 1,231,816$
2024 1,203,845 27,087 1,230,932
Total 2,355,574 $ 107,174 $ 2,462,748 $
Contracts Payable

69 154
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Fiduciary fu
nds long-term debt

1. T
ax allocation bonds payable
2008 Tax allocation bonds
The forme
r Clovis Community Development Agency issued tax allocation bonds in the amount of $19,100,000 in April 2008. The interest rates on the 2008 tax allocation bonds vary from 3.00% to 4.75% and the final payment is scheduled for August 2037. Bonds outstanding at J anuary 31, 2012 were $17,445,000 and were transferred to the Successor Agency on February 1, 2012 due to the dissolution of the Agency. The balance outstanding at June 30, 2022 is $12,065,000 and is held in the City’s Redevelopment Successor Agency Private-purpose Trust Fund.

Tax allocation bonds at June 30, 2022, consisted of the following:

Balance Balance Due in Due in more
7/1/2021 Additions Reductions 6/30/2022 One Year than One Year 2008 tax allocation bonds 11,260,000$ (845,000)$ 10,415,000$ 880,000$ 9,535,000$ Less (discounts) on bonds (128,149) 7,968 (120,181) (120,181) Total tax allocation bonds 11,131,851$ 0$ (837,032)$ 10,294,819$ 880,000$ 9,414,819$ Classification
The ann
ual debt service requirements for the tax allocation bonds outstanding at June 30, 2022, are as follows:

Fiduciary Activities:

Year ending
June 30, Principal Interest Total
2023 880,000 $ 461,001 $ 1,341,001 $ 2024 915,000 421,511 1,336,511
2025 960,000 379,181 1,339,181
2026 995,000 333,972 1,328,972
2027 1,050,000 286,681 1,336,681
2028-2032 3,920,000 736,531 4,656,531
2033-2037 1,380,000 244,625 1,624,625
2038 315,000 7,481 322,481
Total 10,415,000$ 2,870,983$ 13,285,983$ Tax Allocation Bonds
70 155
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

G. Landfill closure

The City has recorded liabilities for landfill closure, post-c losure maintenance and for landfill corrective action in the Community Sanitation Fund, an enterprise fund. T he State of California performs an annual analysis to determine estimated total cost of the landfill closure, post-closur e care costs, total capacity and remaining life.

The City’s landfill closure liability, based on landfill capacity used to date, is recorded based on the information provided by their analysis. The land fill corrective action liability is based on the estimated co st of known or reasonably foreseeable corrective action that may be required at the facility.

The City is currently estimating at J une 30, 2022 that the capacity of the l andfill used is approximately 37%, the estimated remaining life is approximately 35 years and the estimated remaining cost to be recognized is $21,069,673. The estimated capacity remaining is 6, 195,531 cubic yards and the estimated landfill closure liability is $5,002,240. The current esti mated cost of known and/or reasonabl y foreseeable corrective action is $4,500,000 and the City currently has $1,000,000 set asid e for this purpose. These estimates are based on a closure and post-closure maintenance plan and correct ive action plan. The estimates have been adjusted for inflation and other factors such as technology and laws and regulations.

H. Pension Plans

General Information about the Pension Plan

Plan Description

The City contributes to the California Public Employees’ Retirement System (CalPERS), an agent multiple-employer public employee defined benefit pension plan. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. A full descripti on of the pension plan regarding number of employees covered, benefit provisions, assumptions (for fu nding, but not accounting purposes), and membership information are listed in the June 30, 2021 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Benefit Provided

CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic miscellaneous member becomes eligible for Service Retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service . A classic safety member becomes eligible for Service Retirement upon attainment of age 50 with at least 5 years of credited service.

PEPRA safety members become eligible for service retire ment upon attainment of age 57 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 or 12 consecutive months' full-time equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2.7% of the average fi nal 12 months compensation. Retirement benefits for PEPRA miscellaneous employees are calc ulated as 2% of the highest av erage annual compensation over a three-year period. Retirement benefits for classic safety employees are calculated as 3% of the average highest 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2.7% of the average highest 36 months compensation.

Participants are eligible for non-industrial disability reti rement if they become disabled and have at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final co mpensation, multiplied by serv ice. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of highest compensation.

71 156
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed.

The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit ma y choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7. 375 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted by 2 percent applied to the original retirement allowance.

Employees Covered by Benefit Terms

At June 30, 2021, the measurement date, the following employees were covered by the benefit terms:

Employee information
Miscellaneous Safety
Active employees 472 163
Transferred and terminated employees 709 67 Retired Employees and Beneficiaries 336 191 Total 1,517 421
Plans

Contributions

For the measurement period ended June 30, 2021, contributions were as follows:

Aggregate
Miscellaneous Safety Total
Contributions - employer 5,805,693$ 7,861,821$ 13,667,514$ Section 20814(c) of the California P ublic Employees’ Retirement Law (“P ERL”) requires that the employer contribution rates for all public employers be deter mined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The contributions for the measurement period were as follows:

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

For the measurement period ended June 30, 2021, the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2021 total pension liability was based on the following actuarial methods and assumptions:
72 157
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
Derived using CalPERS' Membership Data for all Funds
Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50%
thereafter
Entry Age Normal

7.15%

2.50%
Varies by Entry Age and Service

7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation

The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate

In Fiscal Year 2016-17, the financial reporting discount rate was lowered from 7.65 percent to 7.15 percent. In December 2016, the CalPERS Board approved lowering t he funding discount rate from 7.50 percent to 7.00 percent, which is to be phased-in over a three-year peri od (7.50 percent to 7.375 percent, 7.375 percent to 7.25 percent, and 7.25 percent to 7.00 percent) beginning with the June 30, 2017, valuation reports. The funding discount rate includes a 15 basis-point reduction for administrative expenses, and t he remaining decrease is consistent with the change in the financial reporting discount rate.

Long-term Expected Real Rates of Return by Asset Class

The table below reflects long-term expected real rates of return by asset class. The rates of return were calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These geometric rates of return are net of administrative expenses.

Asset Class1
Assumed Asset
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
1 In the Basic Financial Statements, Fix ed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2 An expected inflation of 2.00% used for this period.
3 An expected inflation of 2.92% used for this period.

Pension Expense

The Net Pension Expense for the year ended June 30, 2022 is itemized as follows:

Net Pension
Expense
Miscellaneous Plan (5,479,639) $
Safety Plan (2,163,692)
(7,643,331)$

73 158
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Changes in the Net Pensi
on Liability
The followi
ng table shows the changes in net pension liability recognized over the measurement period.

Miscellaneous Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Balance at June 30, 2020 (Valuation Date) 231,363,992$ 163,396,337$ 67,967,655$ Changes Recognized for the Measurement Period:

Service Cost 5,383,091 5,383,091
Interest on the total pension liability 16,367,097 16,367,097 Differences between expected and actual experience (202,740) (202,740) Contributions from the employer 5,805,693 (5,805,693)
Contributions from employees 5,025,645 (5,025,645)
Net investment income 37,384,459 (37,384,459)
Benefit payments, including refunds of employee
contributions (9,884,689) (9,884,689) 0
Adminstrative expense (163,223) 163,223
Net Changes during July 1, 2020 to June 30, 2021 11,662,759$ 38,167,885$ (26,505,126)$ Balance at June 30, 2021 (Measurement Date) 243,026,751$ 201,564,222$ 41,462,529$ Increase (Decrease)
Safety Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Balance at June 30, 2020 (Valuation Date) 245,002,879$ 154,271,523$ 90,731,356$ Changes Recognized for the Measurement Period:

Service Cost 5,626,832 5,626,832
Interest on the total pension liability 17,172,665 17,172,665 Differences between expected and actual experience (1,871,462) (1,871,462) Contributions from the employer 7,861,821 (7,861,821)
Contributions from employees 3,509,463 (3,509,463)
Net investment income 35,205,099 (35,205,099)
Benefit payments, including refunds of employee
contributions (11,535,391) (11,535,391) 0
Adminstrative expense (154,108) 154,108
Net Changes during July 1, 2020 to June 30, 2021 9,392,644$ 34,886,884$ (25,494,240)$ Balance at June 30, 2021 (Measurement Date) 254,395,523$ 189,158,407$ 65,237,116$ Increase (Decrease)
74 159
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

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

The following presents the net pensi on liability of the Plan as of the me asurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability woul d be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous Plan 74,211,835$ 41,462,529$ 14,352,600$ Safety Plan 100,147,234$ 65,237,116$ 36,501,857$ Aggretate Total 174,359,069$ 106,699,645$ 50,854,457$ Plan's Net Pension Liability/(Asset)

Pension Plan Fiduciary Net Position

Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Deferred Outflows and Deferred Inflows of Resources Related to Pensions

Deferred Outflows of Resources

Deferred employer
pension contributions Differences between Total
made after Changes actual versus pension-related
measurement date in assumptions expected experience deferred outflows Miscellaneous Plan 6,560,982$ 1,508,690 $ 8,069,672 $ Safety Plan 8,991,444 231,645 $ 3,573,539 12,796,628 Total 15,552,426 $ 231,645 $ 5,082,229 $ 20,866,300 $

Deferred Inflows of Resources

Investment earnings Differences between Total
Changes less than actual versus pension-related
in assumptions expected earnings expected experience deferred inflows Miscellaneous Plan 0$ (18,686,832)$ (144,814)$ (18,831,646)$ Safety Plan (135,102) (17,562,960) (1,464,622) (19,162,684) Total (135,102)$ (36,249,792)$ (1,609,436)$ (37,994,330)$

75 160
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

Amortizatio
n of deferred outflows/(inflows) of resources
Amounts
reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Measurement Period
Ended June 30 Miscellaneous Plan Safety Plan
2022 (3,587,479)$ (3,021,944)$
2023 (4,078,593) (3,189,555)
2024 (4,518,905) (4,062,791)
2025 (5,137,978) (5,083,210)
(17,322,955)$ (15,357,500)$
Deferred Outflows/(Inflows) of Resources
Payabl
e to Pension Plan
At June 30, 2022, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

I. T
ax Abatements
The City has not entered into any tax abatement agreem ents as of June 30, 2022. However, the County of Fresno (County) has provided certain tax abatements that affect the property tax revenues of the City.

The County provides property tax abatements through the California Land Conservation (Williamson) Act of 1965. The program enrolls land in Williamson Act or Farmland Security Zone contracts within established agricultural preserves, whereby the land is restricted to agricultural or qualified recreational uses in exchange for reduced property tax assessments. The Williamson Act Program is administered according to the statute and the County’s Interim Program Guidelines adopted by the County’s Board of Supervisors. The County’s Assessor administers the property tax reduction that parcels enrolled in the program receive. Parcels enrolled in the Williamson Act Program are assessed for property tax purposes at a rate consistent with their actual use, rather than the market value of the property. The minimum contract term for the Williamson Act is ten years and for the Farmland Security Zone is twenty years. Both, the Williamson Act and the Farmland Security Zone contracts automatically renew until a notice of non-renewal or a certificate of cancellation is recorded. Under the non- renewal process, the annual tax assessment gradually increases over a defined period of time until the assessment reflects the market value of the property. Under the cancellation process, a onetime cancellation fee is assessed based upon a certain percentage of the unrestricted, current fair market value of the property.

For the fiscal year ended June 30, 2022, the Coun ty’s Williamson Act Program tax abatements were $54,363,369. The City’s affected portion of property tax revenues (approx. 1.9%) is, therefore, $1,032,904.

V. Other information
A. Self insurance
The City is self-insured for general li ability, automobi le liability, workers' compensation, group dental and group vision programs. The City is responsible for all claims up to $5,000 per occurrence for automobile liability, $5,000 per occurrence for property, $250,000 per occurr ence for workers' compensation, and $100,000 per occurrence on general liability. The dental and vision prog rams have no individual per occurrence stop-loss and no aggregate annual stop-loss. Excess insurance for all am ounts in excess of the self-i nsured retention in the workers' compensation program is purchased from Local Agency Workers’ Compensation Excess JPA (LAWCX). Consistent with the LAWC X Memorandum of Coverage, LAWCX provides coverage for the City above its self-insured retention of $250,000 up to $5,000,000. LAWCX purchases excess insurance which covers the pool for losses from $5,000,000 to statutory limits. 76 161
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022

The City is a member of the Central San Joaquin Va lley Risk Management Authority (RMA) for the purpose of pooling general liability coverage under a retrospectively rated Memorandum of Coverage. Deposit premiums to the RMA are based on actuarially determined claims co sts, including incurred but not reported claims, and expenses. Premiums are accrued based on the ultimate cost determined by the experience to date of the pool’s member cities. The risk pool covers the City above it s self-insured retention of $100,000 up to $1,000,000. The Authority purchases excess insurance which covers the pool for losses fr om $1,000,001 to $29,000,000. Pool Members may receive rebates when declared by RMA or, in the event excess liability claims against RMA exceed available resources, may be required to make additional contributions through a retrospective adjustment process.

The City accounts for the self-insurance programs in the Self-Insurance Fund and Employee Benefits Fund, both internal service funds. Charges to user departments are reported as interfund transactions.

Incurred but not reported claims have been accrued as a liability for the workers' compensation and dental programs as required in the amount of $4,423,230 based on previous claims experience and actuarial studies.

There were no reductions in insurance coverage from the prior year and there were no settlements that exceeded insurance coverage for the past three fiscal years. Following is a reconciliation of the changes in the City’s aggregate liabilities for claims for the current and prior fiscal year:

Workers'
Compensation Dental Total
Balance, 06/30/20 . 9,724,000$ 48,000$ 9,772,000$ Claims provision 1,853,615 318,726 2,172,341 Claims paid (2,547,615) (318,726) (2,866,341) Balance, 06/30/21 9,030,000 48,000 9,078,000 Claims provision 2,735,258 385,721 3,120,979 Claims paid (3,092,258) (385,721) (3,477,979) Balance, 06/30/22 8,673,000$ 48,000$ 8,721,000$

B. Deferred compensation

The City has established a deferred compensation plan in accordance with Internal Revenue Code Section 457.

The plan, available to all full time employees, permits them to defer a portion of their salary until future years.

Participation in the plan is optional. The deferred compen sation is not available to employees until termination, retirement, death or unforeseeable emergency. All am ounts deferred under the plan and all income attributable to those amounts are solely the property and rights of the plan participants.

Semi-monthly the City forwards all contributions to t he plan administrator, the ICMA Retirement Corporation.

Plan participants may choose from investment options wh ich are managed by the plan trustee. The City has no liability for losses under the plan. As of January 1, 1998 ICMA Retirement Corporation amended the agreement with the City to comply with IRC Section 457 regulations. The assets and related liabilities are not reported on the City’s financial statements in accordance with Governmental Accounting Standards Board Statement No. 32 - “Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.”

77 162
AGENDA ITEM NO. 11.

CITY OF CLOVIS
Notes to Financial Statements
For the Year Ended June 30, 2022
C. Postretirement benefits
1of service the opportunity to continue enrollment in the City's health insurance program until age 65. The retirees have the same choice of insurance plans as those of curren t employees. The retirees are pooled
together separately from the active employee pool and pa y the full cost of the insurance premiums without cost to the City.

D. Contingent liabilities
The City participates in a number of federally assi sted grant programs, including those from the U.S.

Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of Labor, U.S. Depar tment of Health and Human Services and the U.S.

Department of Homeland Security. Receipts from these gr ant programs are su bject to audit to determine if the
monies were expended in accordance with the approp riate statutes, grant terms and regulations. The City believes no significant liabilities will result.

Although the outcome of other lawsuits and claims is not determinable, it is t he opinion of the City Attorney that the resolution of these matters will not have a material adverse effect on the financial condition of the City. 78 163
AGENDA ITEM NO. 11.



























7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN

79 164
AGENDA ITEM NO. 11.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios California Public Employees' Retirement System (CalPERS) - Miscellaneous Plan Last Ten Fiscal Years4
Measurement period 2020-21 2019-20 2018-19 2017-18
Total pension liability
Service Cost 5,383,091$ 5,253,785$ 5,057,577$ 4,786,244$ Interest on the total pension liability 16,367,097 15,572,381 14,655,898 13,670,020 Changes of assumptions (1,271,290)
Difference between expected and actual experience (202,740) 1,939,655 3,417,850 2,414,711 Benefit pmts, including refunds of employee contributions (9,884,689) (9,261,642) (8,604,933) (7,837,606) Net change in total pension liability 11,662,759 13,504,179 14,526,392 11,762,079 Total pension liability - beginning 231,363,992 217,859,813 203,333,421 191,571,342 Total pension liability - ending (a) 243,026,751$ 231,363,992$ 217,859,813$ 203,333,421$ Plan fiduciary net position
Contributions - employer 5,805,693$ 4,995,682$ 4,051,371$ 3,326,932$ Contributions - employee 5,025,645 4,832,063 4,994,620 4,295,547 Net investment income 37,384,459 7,851,765 9,653,940 11,445,035 Benefit pmts, including refunds of employee contributions (9,884,689) (9,261,642) (8,604,933) (7,837,606) Net Plan to plan resource movement (337)
Administrative expense (163,223) (218,790) (103,622) (209,719) Other miscellaneous income/(expense)
1 337 (398,260)
Net change in fiduciary net position 38,167,885 8,199,078 9,991,713 10,621,592 Plan fiduciary net position - beginning2
163,396,337 155,197,259 145,205,546 134,583,954 Plan fiduciary net position - ending (b) 201,564,222$ 163,396,337$ 155,197,259$ 145,205,546$ Plan net pension liability - ending (a) - (b) 41,462,529$ 67,967,655$ 62,662,554$ 58,127,875$ Plan fiduciary net position as a percentage
of the total pension liability 82.94% 70.62% 71.24% 71.41% Covered payroll3
31,572,381$ 30,228,914 $ 28,646,712 $ 26,661,340 $ Plan net pension liability as a % of covered payroll 131.33% 224.84% 218.74% 218.02% 1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 4 This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

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

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
80 165
AGENDA ITEM NO. 11.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios

California Public Employees' Retirement System (CalPERS) - Miscellaneous Plan Last Ten Fiscal Years4
Measurement period 2016-17 2015-16 2014-15 2013-14
Total pension liability
Service Cost 4,581,081$ 4,019,807$ 3,839,364$ 3,770,553$ Interest on the total pension liability 12,863,057 12,118,925 11,339,870 10,627,308 Changes of assumptions 10,936,836 (2,825,475)
Difference between expected and actual experience 812,258 898,210 265,438 Benefit pmts, including refunds of employee contributions (6,970,312) (6,395,433) (5,572,456) (5,099,721) Net change in total pension liability 22,222,920 10,641,509 7,046,741 9,298,140 Total pension liability - beginning 169,348,422 158,706,913 151,660,172 142,362,032 Total pension liability - ending (a) 191,571,342$ 169,348,422$ 158,706,913$ 151,660,172$ Plan fiduciary net position
Contributions - employer 3,204,896$ 2,918,817$ 3,275,626$ 3,096,889$ Contributions - employee 4,080,143 4,002,625 3,097,353 2,553,852 Net investment income 13,602,008 705,624 2,655,292 17,261,431 Benefit pmts, including refunds of employee contributions (6,970,312) (6,395,433) (5,572,456) (5,099,721) Net Plan to plan resource movement
Administrative expense (178,420) (72,943) (134,636) Other miscellaneous income/(expense)1
Net change in fiduciary net position 13,738,315 1,158,690 3,321,179 17,812,451 Plan fiduciary net position - beginning2
120,845,639 119,686,949 116,365,770 98,553,319 Plan fiduciary net position - ending (b) 134,583,954 $ 120,845,639 $ 119,686,949 $ 116,365,770 $ Plan net pension liability - ending (a) - (b) 56,987,388$ 48,502,783 $ 39,019,964 $ 35,294,402 $ Plan fiduciary net position as a percentage
of the total pension liability 70.25% 71.36% 75.41% 76.73% Covered payroll3
25,396,835$ 24,405,359 $ 22,815,330 $ 21,224,617 $ Plan net pension liability as a % of covered payroll 224.39% 198.74% 171.03% 166.29%

1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 4 This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

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

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
81 166
AGENDA ITEM NO. 11.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios, Continued

California Public Employees' Retirement System (CalPERS) - Safety Plan Last Ten Fiscal Years4
Measurement period 2020-21 2019-20 2018-19 2017-18
Total pension liability
Service Cost 5,626,832$ 5,692,902$ 5,508,074$ 5,400,076$ Interest on the total pension liability 17,172,665 16,528,674 15,548,223 14,583,496 Changes of assumptions (626,378)
Difference between expected and actual experience (1,871,462) 3,334,764 3,526,827 1,258,478 Benefit pmts, including refunds of employee contributions (11,535,391) (11,085,026) (10,456,706) (9,686,731) Net change in total pension liability 9,392,644 14,471,314 14,126,419 10,928,941 Total pension liability - beginning 245,002,879 230,531,565 216,405,147 205,476,206 Total pension liability - ending (a) 254,395,523$ 245,002,879$ 230,531,565$ 216,405,147$ Plan fiduciary net position
Contributions - employer 7,861,821$ 6,966,114$ 5,912,775$ 5,062,611$ Contributions - employee 3,509,463 3,314,861 3,219,394 3,107,991 Net investment income 35,205,099 7,391,522 9,280,425 11,067,806 Benefit pmts, including refunds of employee contributions (11,535,391) (11,085,026) (10,456,706) (9,686,731) Net Plan to plan resource movement (325)
Administrative expense (154,108) (208,492) (99,933) (204,254) Other miscellaneous income/(expense)
1 325 (387,882)
Net change in fiduciary net position 34,886,884 6,378,979 7,856,280 8,959,216 Plan fiduciary net position - beginning2
154,271,523 147,892,544 140,036,264 131,077,048 Plan fiduciary net position - ending (b) 189,158,407 $ 154,271,523 $ 147,892,544 $ 140,036,264 $ Plan net pension liability - ending (a) - (b) 65,237,116$ 90,731,356 $ 82,639,021 $ 76,368,883 $ Plan fiduciary net position as a percentage
of the total pension liability 74.36% 62.97% 64.15% 64.71% Covered payroll3
19,061,084$ 19,148,678 $ 18,354,740 $ 17,992,455 $ Plan net pension liability as a % of covered payroll 342.25% 473.83% 450.23% 424.45% 1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 4 This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

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

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
82 167
AGENDA ITEM NO. 11.

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios, Continued

California Public Employees' Retirement System (CalPERS) - Safety Plan Last Ten Fiscal Years4
Measurement period 2016-17 2015-16 2014-15 2013-14
Total pension liability
Service Cost 5,070,624$ 4,128,912$ 3,953,791$ 3,803,175$ Interest on the total pension liability 13,834,596 13,060,555 12,319,585 11,633,302 Changes of assumptions 11,813,770 (3,070,074)
Difference between expected and actual experience 1,747,504 1,309,944 936,342 Benefit pmts, including refunds of employee contributions (8,769,084) (8,144,855) (7,825,158) (7,071,659) Net change in total pension liability 23,697,410 10,354,556 6,314,486 8,364,818 Total pension liability - beginning 181,778,796 171,424,240 165,109,754 156,744,936 Total pension liability - ending (a) 205,476,206$ 181,778,796$ 171,424,240$ 165,109,754$ Plan fiduciary net position
Contributions - employer 4,872,316$ 4,263,677$ 4,110,362$ 3,752,858$ Contributions - employee 2,967,546 2,806,615 2,157,404 1,915,171 Net investment income 13,334,234 611,274 2,616,436 17,731,050 Benefit pmts, including refunds of employee contributions (8,769,084) (8,144,855) (7,825,158) (7,071,659) Net Plan to plan resource movement
Administrative expense (175,470) (72,758) (134,357) Other miscellaneous income/(expense)1
Net change in fiduciary net position 12,229,542 (536,047) 924,687 16,327,420 Plan fiduciary net position - beginning2
118,847,506 119,383,553 118,458,866 102,131,446 Plan fiduciary net position - ending (b) 131,077,048 $ 118,847,506 $ 119,383,553 $ 118,458,866 $ Plan net pension liability - ending (a) - (b) 74,399,158$ 62,931,290$ 52,040,687$ 46,650,888$ Plan fiduciary net position as a percentage
of the total pension liability 63.79% 65.38% 69.64% 71.75% Covered payroll3
16,912,791$ 15,361,676 $ 14,732,611 $ 13,667,214 $ Plan net pension liability as a % of covered payroll 439.90% 409.66% 353.23% 341.33%

1 During Fiscal Year 2017-18, as a result of Government al Accounting Standards Boar d Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time ex pense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various Stat e of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumpti on for fiscal years ended June 30, 2018- 20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 4 This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

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

Benefit Changes: The figures above include any liability impac t that may have resulted fr om voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offe rs of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduc ed from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
83 168
AGENDA ITEM NO. 11.

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Pension Contributions

California Public Employees' Retirement System (CalPERS) - Miscellaneous Plan Last Ten Fiscal Years4
2021-221 2020-211 2019-201 2018-191 2017-181
Actuarially determined contribution2
6,560,982$ 5,805,693 $ 4,995,682 $ 4,051,371 $ 3,326,932 $ Contributions to actuarially determined
contribution2
(6,560,982) (5,805,693) (4,995,682) (4,051,371) (3,326,932) Contribution deficiency (excess) 0$ 0$ 0$ 0$ 0$ Covered payroll3
32,519,552$ 31,572,381$ 30,228,914$ 28,646,712$ 26,661,340$ Contributions as a percentage of covered payroll3

20.18% 18.39% 16.53% 14.14% 12.48%
2016-171 2015-161 2014-151 2013-141
Actuarially determined contribution2
3,204,896$ 2,918,817 $ 3,275,626 $ 3,096,889 $ Contributions to actuarially determined
contribution
2 (3,204,896) (2,918,817) (3,275,626) (3,096,889) Contribution deficiency (excess) 0$ 0$ 0$ 0$ Covered payroll3
25,396,835$ 24,405,359$ 22,815,330$ 21,224,617$ Contributions as a percentage of covered payroll3

12.62% 11.96% 14.36% 14.59%

1 As prescribed in GASB 68, par agraph 46, the information pr esented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal ye ar-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towa rds their unfunded liability. Empl oyer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17. 4 This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

Valuation Date:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method/Period For details, see June 30, 2017 Funding Valuation Report Asset valuation method Fair Value of Assets. For details, see June 30, 2017 Funding Valuation Report.

Inflation 2.50%
Salary increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment rate of return 7.00%, net of pension plan investment & admin exps; includes inflation.

Retirement age
Mortality
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
84 169
AGENDA ITEM NO. 11.

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Pension Contributions, Continued

California Public Employees' Retirement System (CalPERS) – Safety Plan Last Ten Fiscal Years4
2021-221 2020-211 2019-201 2018-191 2017-181
Actuarially determined contribution2
8,991,444$ 7,861,821 $ 6,966,114 $ 5,912,775 $ 5,062,611 $ Contributions to actuarially determined
contribution2
(8,991,444) (7,861,821) (6,966,114) (5,912,775) (5,062,611) Contribution deficiency (excess) 0$ 0$ 0$ 0$ 0$ Covered payroll3
19,632,917$ 19,061,084$ 19,148,678$ 18,354,740$ 17,992,455$ Contributions as a percentage of covered payroll3

45.80% 41.25% 36.38% 32.21% 28.14%
2016-171 2015-161 2014-151 2013-141
Actuarially determined contribution2
4,872,316$ 4,263,677 $ 4,110,362 $ 3,752,858 $ Contributions to actuarially determined
contribution2
(4,872,316) (4,263,677) (4,110,362) (3,752,858) Contribution deficiency (excess) 0$ 0$ 0$ 0$ Covered payroll3
16,912,791$ 15,361,676$ 14,732,611$ 13,667,214$ Contributions as a percentage of covered payroll3

28.81% 27.76% 27.90% 27.46%

1 As prescribed in GASB 68, par agraph 46, the information pr esented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal ye ar-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towa rds their unfunded liability. Empl oyer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17. 4 This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

Valuation Date:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method/Period For details, see June 30, 2017 Funding Valuation Report Asset valuation method Fair Value of Assets. For details, see June 30, 2017 Funding Valuation Report.

Inflation 2.50%
Salary increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment rate of return 7.00%, net of pension plan investment & admin exps; includes inflation.

Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

85 170
AGENDA ITEM NO. 11.



























7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN

86 171
AGENDA ITEM NO. 11.

Nonmajor Governmental Funds

__________________________________

Special Revenue Funds

Special revenue funds are used to account for specific revenues that are legally restricted for particular purposes.

Off Highway Use Fund - This fund is used to account for the revenue received from the off-highway users fee since the fee can only be used for off-road facilities.

Housing & Community Development Fund - This fund is used to account for the revenue and expenses for the Community Development Block Grant operational activities.

Community Facilities District 2020-1 Fund (Dry Creek Preserve Sewer Facilities and Services) - This fund is used to collect funds to finance all costs associated with the maintenance and operation of certain temporary public sewer facilities an d the eventual replacement of those temporary facilities with permanent public sewer facilities.

Debt Service Funds

The debt service fund is used to account for the accumulation of resources and payment of bond principal and interest when the government is obligated in some manner for the payment.

1976 Fire and Sewer Bond Fund - This fund is used to account for the proceeds of the 1976 Fire and Sewer Bond sale and the annual debt service.

Capital Projects Funds

Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds.

Park and Recreation Improvement Fund - This fund is used to account for capital improvements for parks, including acquisition of property. Revenues come from developer fees and grants.

Refuse Equipment Reserve Fund - This fund is used to account for the revenue generated by developer fees for the acquisition of equipment for refuse collection and disposal.

87 172
AGENDA ITEM NO. 11.