CITY COUNCIL/SUCCESSOR
AGENCY/PUBLIC FINANCE AUTHORITY
MEETINGAGENDA
May 16, 2024
6:00 PM
The Mission of the City of Coalinga is to provide for the preservation of the community character by delivering quality, responsive City services, in an efficient and cost-effective manner, and to develop, encourage, and promote a diversified economic base in order to ensure the future financial stability of the City for its citizens.
Notice is hereby given that the City Council will hold a Meeting, on May 16, 2024 in the City Council Chambers located at 155 West Durian, Coalinga, CA. Persons with disabilities who may need assistance should contact the City Clerk at least 24 hours prior to this meeting at 935-1533 x113. Anyone interested in translation services should contact the City Clerk at least 24 hours prior to the meeting at 935-1533 x113. The Meeting will begin at 6:00 p.m. and the agenda will be as follows:
1. CALL TO ORDER
1. Pledge of Allegiance
2. Changes to the Agenda
3. Council's Approval of Agenda
2. AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS
1. Proclamation: National Public Works Week 2024
2. Certificate of Recognition: Westlands Water District 2024 West Side Scholarship Recipients
3. Presentation of Fiscal Year 2022-2023 Audited Financial Statements by City Auditor
3. CITIZEN COMMENTS
This section of the agenda allows members of the public to address the City Council on any item within the jurisdiction of the Council. Members of the public, when recognized by the Mayor, should come forward to the lectern, identify themselves and use the microphone. Comments are normally limited to three (3) minutes. In accordance with State Open Meeting Laws, no action will be taken by the City Council this evening and all items will be referred to staff for follow up and a report.
Citizen Comments submitted in writing to the City Clerk by 5:00pm on the day of the City Council meeting shall be distributed to the City Council and included in the record, however they will not be read.
4. PUBLIC HEARINGS (NONE)
5. CONSENT CALENDAR
1. Approve MINUTES - May 2, 2024
2. Information Only: Sales Tax Update Quarter 4 October 2023 - December 2023
3. Information Only: California Consensus Forecast 4Q 2023 Sales Tax Trends
4. Consideration of Bid Award for Animal Shelter Project
5. Adopt Resolution No. 4204 Approving a List of Projects to be Funded by SB 1: The Road Repair and Accountability Act and Further Authorizing Budget Expense in Amount of $462,377.00 to Execute List of Projects Funded by SB 1 in 2024/2025 Fiscal Year
6. Adopt Resolution No. 4205 Authorizing Assistant City Manager to Submit Application for CalFire Urban Community and Forestry Grant
7. Authorize Assistant City Manager to Execute a Task Order with MKN and Associates to Develop City of Coalinga’s Water Treatment Plant (WTP) Operations Plan for New Recently Installed Facilities
8. Authorize City Manager to Approve Engagement Letter received from Price Paige & Company for Consulting Services related to Preparation of Fiscal Year 2023-2024 Audit
9. Code Enforcement Monthly Report for March 2024
10. Coalinga Police Department Monthly Report for April 2024
6. ORDINANCE PRESENTATION, DISCUSSION AND POTENTIAL ACTION ITEMS
1. Fiscal Year 2024-2025 Proposed Budget Discussion and Direction
7. ANNOUNCEMENTS
1. City Manager's Announcements
2. Councilmembers' Announcements/Reports
3. Mayor's Announcements
8. FUTURE AGENDA ITEMS
9. CLOSED SESSION
1. CONFERENCE WITH LABOR NEGOTIATORS – Government Code 54957.6.
CITY NEGOTIATORS: City Manager, Marissa Trejo; City Attorney, Mario Zamora.
EMPLOYEE (ORGANIZATION): Non-Represented Employees
10. CLOSED SESSION REPORT
Closed Session: A "Closed" or "Executive" Session of the City Council, Successor Agency, or Public Finance Authority may be held as required for items as follows: personnel matters; labor negotiations; security matters; providing instructions to real property negotiators; legal counsel regarding pending litigation; and protection of records exempt from public disclosure.
Closed session will be held in the Administration Building at 155 W. Durian Avenue and any announcements or discussion will be held at the same location following Closed Session.
11. ADJOURNMENT
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Proclamation: National Public Works Week 2024
Meeting Date:
From:
Prepared by:
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
Proclamation_Public_Works_Week_2024.docx Public Works Week Proclamation
PROCLAMATION
By the
MAYOR OF THE CITY OF COALINGA
NATIONAL PUBLIC WORKS WEEK
WHEREAS, the Public Works Department provides services for our community and are a vital and integral part of our citizen’s everyday lives; and
WHEREAS, the support of the community is vital to the efficient operation of public works systems and programs such as water, sewers, streets, fleet maintenance, building maintenance, wastewater treatment, solid waste collection, and airport operations; and WHEREAS, the health, safety and comfort of this community greatly depends on these facilities and services; and
WHEREAS, the quality and effectiveness of these facilities, as well as their planning, design and construction, is vitally dependent upon the efforts and skill of public works officials; and WHEREAS, the efficiency and effectiveness of the qualified and skilled staff contribute to the quality of life that residents and visitors alike enjoy and rely upon from the City of Coalinga.
NOW THEREFORE, by the Mayor and City Council that we recognize and extend appreciation to our dedicated and skilled staff and hereby proclaim the week of May 19 – 25, 202 as “National Public Works Week”
“Advancing Quality of Life for All”
AND, BE IT FURTHER PROCLAIMED that the City Council requests that all citizens and civic organizations acquaint themselves with the issues involved in providing public works services to our community and to recognize the contributions which our public works employees make every day to our health, safety, comfort and quality of life.
IN WITNESS WHEREOF, I have set my hand and caused the Seal of the City of Coalinga to be affixed this 2nd day of May 2024.
____________________________________
James Horn, Mayor
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Presentation of FiscalYear 2022-2023 Audited Financial Statements by City Auditor
Meeting Date: May 16, 2024
From: Marissa Trejo
Prepared by: Mai Vang
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
20240418_-_Coalinga_6-30-23_FINAL.pdf FY22/23Audited Financial Statements 20240418_-_Coalinga_FINAL_Management_Report_6-30-2023.pdf FY22/23 Management Report
CITY OF COALINGA
INDEPENDENT AUDITOR’S REPORT
AND
FINANCIAL STATEMENTS
JUNE 30, 2023
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet - Governmental Funds 6
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities 7
Statement of Revenue, Expenditures and Changes in
Fund Balance - Governmental Funds 8
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities and Changes in Net Position 9 Statement of Net Position - Proprietary Funds 10
Statement of Revenue, Expenses and Changes in Fund Net
Position - Proprietary Funds 11
Statement of Cash Flows - Proprietary Funds 12 – 13
Statement of Fiduciary Net Position – Private Purpose Trust Funds 14 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds 15 Notes to Financial Statements 16 – 50
TABLE OF CONTENTS (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 51
Budgetary Comparison Schedule – CalTrans 52
Schedule of Proportionate Share of Net Pension Liability/(Asset) 53 Schedule of Contributions 54
Supplemental Only Information
Budgetary Comparison Schedule – Coalinga Public Financing Authority Fund 55 Combining Balance Sheet – Nonmajor Governmental Funds 56 – 57 Combining Statement of Revenue, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds 58 – 59 INDEPENDENT AUDITOR’S 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 60 – 61
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY UNIFORM GUIDANCE 62 – 64
Schedule of Expenditures of Federal Awards 65
Notes to Schedule of Expenditures of Federal Awards 66
Schedule of Findings and Questioned Costs 67
Summary Schedule of Prior Audit Findings 68
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Coalinga, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Coalinga (the “City”), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 51-52, the Schedule of Proportionate Share of Net Pension Liability/(Asset) on page 53, and the Schedule of Contributions on page 54 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with 3 management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and the budgetary comparison schedule for the Coalinga Public Finance Authority Fund and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the budgetary comparison schedule for the Coalinga Public Finance Authority Fund and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 22, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
March 22, 2024
See accompanying notes. 4
CITY OF COALINGA
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 25,215,280 $ 5,815,441 $ 31,030,721 Restricted cash with fiscal agent 520,119 7,528,405 8,048,524 Accounts receivable, net 56,039 1,530,457 1,586,496
Interest receivable 1,969,263 10,731 1,979,994
Lease receivable 166,554 166,554 -
Prepaids 317,721 5,814 323,535
Due from other governments 4,512,893 175,803 4,688,696
Internal balances 18,500,000 (18,500,000) -
Land held for resale 165,000 165,000 -
Notes receivable 2,727,613 2,727,613 -
Bonds receivable 619,942 619,942 -
Capital assets, net of allowance
for depreciation 17,752,213 34,074,943 51,827,156
Total assets 14,318,864 88,845,367 103,164,231
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 2,079,807 608,424 2,688,231 Total deferred outflows of resources 2,079,807 608,424 2,688,231
LIABILITIES
Accounts payable 613,510 1,407,974 2,021,484
Accrued liabilities 307,968 82,820 390,788
Accrued interest payable 147,906 - 147,906
Deposits and claims payable 114,684 60,500 175,184
Unearned revenue 29,559 - 29,559
Long-term liabilities
Due within one year 943,947 - 943,947
Due in more than one year 21,777,384 - 21,777,384
Lease liabilities 175,002 - 175,002
Net pension liability 1,557,647 416,058 1,973,705
Compensated absences 162,758 474,418 637,176
Total liabilities 2,130,110 26,142,025 28,272,135
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 262,577 35,720 298,297 Deferred inflows of resources related to leases - 76,188 76,188 Total deferred inflows of resources 35,720 338,765 374,485
NET POSITION
Net investment in capital assets 11,353,612 9,045,618 20,399,230 Restricted for debt service 24,420,955 - 24,420,955
Restricted for specific projects and programs 9,833,560 - 9,833,560 Unrestricted 3,715,840 18,836,257 22,552,097
Total net position $ 12,761,458 64,444,384 $ 77,205,842 $ See accompanying notes. 5
CITY OF COALINGASTATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2023 .
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government $ 1,450,934 $ 105 $ - $ (1,450,829) - $ $ (1,450,829) - $ Public works 2,818,708 195,605 4,434,933 128,764 1,940,594 1,940,594 - Community development 291,330 191,794 - - (99,536) (99,536) - Public safety 11,047,787 2,736,011 3,847,145 (4,464,631) - (4,464,631) - Debt Service
Capital outlay 1,480 - - - (1,480) (1,480) -
Interest and fiscal charges - 880,412 - - (880,412) - (880,412) Total governmental activities 2,931,721 16,490,651 8,473,872 128,764 (4,956,294) - (4,956,294) Business-type activities
Water 6,067,882 5,696,863 - 327,657 - (43,362) (43,362)Sewer 1,868,502 1,640,153 - - (228,349) - (228,349)Natural Gas 4,258,152 4,078,026 - - (180,126) - (180,126)Sanitation 2,795,673 2,600,774 - - - (194,899) (194,899) Total business-type activities 14,015,816 14,990,209 - 327,657 - (646,736) (646,736) Total primary government $ 31,480,860 16,947,537 $ 8,473,872 $ 456,421 $ (4,956,294) (646,736) (5,603,030) General Revenue
Property taxes - 3,846,938 3,846,938
Sales taxes - 3,552,421 3,552,421
Franchise and other taxes - 642,681 642,681
Business licenses - 178,007 178,007
Rents 22,700 106,007 128,707
Interest income 320,653 731,650 1,052,303
Other 75,747 143,987 219,734
Gain/(loss) on sale of assets (3,124) 9,028 5,904
Total general revenue 415,976 9,210,719 9,626,695
Change in Net Position (230,760) 4,254,425 4,023,665
Net Position
Beginning of year, restated 12,992,218 60,189,958 73,182,176 End of year $ 12,761,458 64,444,384 $ 77,205,842 $
Functions/Programs
Net Revenue/(Expense) and
Program Revenue Changes in Net Position
See accompanying notes. 6
CITY OF COALINGA
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2023
Coalinga Public Low-Moderate
Financing Housing Nonmajor Total
Authority Debt Asset Special Governmental Governmental
General Service Fund Revenue Fund CalTrans Funds Funds
ASSETS
Cash and investments $ 16,622,744 $ 2,458,422 $ 1,674,040 $ 65,060 $ 4,395,014 $ 25,215,280 Cash and investments with fiscal agent 520,119 - - - 520,119 - Accounts receivable, net 47,018 - - - 9,021 56,039
Interest receivable 22,482 1,935,656 3,651 - 7,474 1,969,263 Lease receivable 166,554 - - - 166,554 -
Due from other governments 711,722 - 28,842 107,152 3,665,177 4,512,893 Prepaids 20,293 294,490 - 2,905 33 317,721
Land held for resale - 165,000 - - 165,000 -
Due from other funds 548,471 - - - 548,471 -
Advances to other funds 18,500,000 - - - 18,500,000 -
Notes receivable - 2,727,613 - - 2,727,613 -
Bonds receivable 619,942 - - - - 619,942
Total assets $ 24,328,629 18,139,284 $ 4,599,146 $ 175,117 $ 8,076,719 $ 55,318,895 $
LIABILITIES
Accounts payable 217,374 $ - $ 4,189 $ 42,645 $ 349,302 $ 613,510 $ Accrued liabilities 307,968 - - - - 307,968
Deposits and claims payable 109,384 - - - 5,300 114,684 Due to other funds - - - - 548,471 548,471
Unearned revenue - - - - 29,559 29,559
Total liabilities - 634,726 4,189 42,645 932,632 1,614,192
DEFERRED INFLOWS OF RESOURCES
Deferred right to use - lease income 76,188 - - - - 76,188 Unavailable revenues - - 2,727,613 - 2,638,172 5,365,785 Total deferred inflows of resources - 76,188 2,727,613 - 2,638,172 5,441,973
FUND BALANCE
Nonspendable:
Leases receivable - 166,554 - - - 166,554
Restricted:
Debt service - 24,328,629 - - 92,326 24,420,955
Emergency medical transportation 3,420,155 - - - - 3,420,155 Community development - - 1,867,344 - - 1,867,344
Storm drainage and flood control - - - - 385,212 385,212 Streets and bridges - - - - 125,386 125,386
Public building and facilities - - - - 103,343 103,343
Park improvements - - - - 283,645 283,645
Transit system - - - 132,472 - 132,472
Street maintenance - - - - 1,873,565 1,873,565
LTF Article 8 - - - - 1,184,942 1,184,942
Law enforcement and fire - - - - 349,818 349,818
EDA Community buildings - - - - 47,742 47,742
EDA revolving loans - - - - 59,936 59,936
Unassigned - 13,841,661 - - - 13,841,661
Total fund balance 17,428,370 24,328,629 1,867,344 132,472 4,505,915 48,262,730 Total liabilities, deferred inflows of
resources, and fund balance 18,139,284 $ 24,328,629 $ 4,599,146 $ 175,117 $ 8,076,719 $ 55,318,895 $ See accompanying notes. 7
CITY OF COALINGA
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION
OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
Total governmental fund balance $ 48,262,730
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. 34,074,943 Other long-term assets are not available resources and, therefore, are not reported in the funds.
Deferred outflows of resources related to net pension liability, represent a consumption of net position that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 2,079,807 Net pension liability are not due and payable in the current period and, therefore, are not reported in the funds. (1,557,647) Deferred inflows of resources related to net pension liability, represent an as liabilities in the Statement of Net Position since revenue recognition is not based upon measurable and available criteria. (262,577) Unavailable revenue balances relating to certain receivables are not reported acquisition of net position that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Governmental long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. (22,896,333) Compensated absences are not due and payable in the current period and therefore are not reported in the funds. (474,418) Interest on long-term debt is reported as an expenditure of the Governmental Funds when paid because it requires the use of current financial resources. However, accrued interest must be recorded when incurred. (147,906) Unavailable revenues are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 5,365,785 Net position of governmental activities $ 64,444,384
See accompanying notes. 8
CITY OF COALINGA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Low-Moderate
Coalinga Public Housing Nonmajor Total
Financing Asset Special Governmental Governmental
General Authority Revenue Fund CalTrans Funds Funds
Revenue
Taxes and special assessments $ 8,042,040 $ - $ - $ - $ 8,042,040 - $ Licenses, permits and impact fees 945,191 - - 13,310 - 958,501 Intergovernmental 1,981,449 331,113 - 1,309,994 3,540,255 7,162,811 Charges for services 2,139,316 - - - 2,139,316 -
Fines and forfeitures 11,911 - - - - 11,911
Use of money and property 170,991 787,138 7,175 4,512 - 969,816 Interest - - - 20,596 - 20,596
Other - 143,987 - - - 143,987
Total revenue 787,138 13,434,885 338,288 1,309,994 3,578,673 19,448,978 Expenditures
Current
General government 1,135,425 11,566 - - 1,146,991 -
Public works 343,538 - - 10,178 1,847,931 2,201,647
Community development 443,545 - 35,471 1,070 - 480,086
Public safety 8,807,897 - - 124,999 - 8,932,896
Capital outlay 1,041,507 - 50,449 1,416,638 1,473,719 3,982,313 Debt Service
Principal 555,942 310,000 - 37,130 - 903,072
Interest and fiscal charges 577,893 15,766 - - 5,070 598,729 Total expenditures 899,459 12,343,620 85,920 1,426,816 3,489,919 18,245,734 Revenue over/(under) expenditures 1,091,265 (112,321) 252,368 (116,822) 88,754 1,203,244 Other Financing Sources/(Uses)
Capital lease proceeds - 201,769 - - - 201,769
Total other financing sources - 201,769 - - - 201,769
Change in Fund Balance (112,321) 1,293,034 252,368 (116,822) 88,754 1,405,013 Fund Balance
Beginning of year 24,440,950 16,135,336 1,614,976 249,294 4,417,160 46,857,716 End of year $ 24,328,629 17,428,370 $ 1,867,344 $ 132,472 $ 4,505,915 $ 48,262,730 $ See accompanying notes. 9
CITY OF COALINGA
RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITES AND
CHANGES IN NET POSITION
YEAR ENDED JUNE 30, 2023
Net change in fund balance - total governmental funds $ 1,405,013 Amounts reported for governmental activities in the Statement of Activities are different because:
Depreciation expense on capital assets is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, depreciation expense is not required as expenditures in Governmental Funds (1,397,523)
Pension expenses reported in the Statement of Activities do not require the of current financial resources and, therefore are not reported as expenditures in the Governmental Funds (1,586,596)
Amortization of deferred debt costs in the Statement of Activities does not require the use of current financial resources and is not required as expenditures in Governmental Funds 17,154
Governmental Funds report proceeds from the sale of assets as revenue.
However, in the Statement of Activities the proceeds are reduced by the book value of the asset 9,028
Governmental Funds report capital outlay as expenditures. However, in the Statement of Activities the cost of those assets are capitalized as an asset and depreciated over the period of service 3,982,313 Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Assets (201,769) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds 1,439,825 Repayment of long-term debt is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position 837,940 Compensated absence costs in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in Governmental Funds (98,206) In the Statement of Activities interest is accrued on long-term debt, whereas, in governmental funds interest expenditure is reported when due (152,754) Change in net position of governmental activities 4,254,425 $ See accompany notes. 10
CITY OF COALINGA
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
JUNE 30, 2023
Total
Natural Proprietary
Water Sewer Gas Sanitation Funds
ASSETS
Current assets
Cash and investments 1,234,499 $ 3,342,163 $ 1,089,103 $ 149,676$ $ 5,815,441 Cash and investments with fiscal agent 7,528,405 - - - 7,528,405 Accounts receivable, net 819,448 101,802 345,659 263,548 1,530,457 Interest receivable 3,146 5,883 1,643 59 10,731
Due from other governments 175,803 - - - 175,803
Prepaids 1,818 2,889 1,100 7 5,814
Total current assets 3,627,469 9,588,387 1,437,505 413,290 15,066,651 Non-current assets
Property, plant and equipment,
net of allowance for depreciation 6,075,176 11,282,355 394,682 - 17,752,213 Total noncurrent assets 6,075,176 11,282,355 394,682 - 17,752,213 Total assets 9,702,645 20,870,742 1,832,187 413,290 32,818,864
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 276,091 131,530 176,858 23,945 608,424 Total deferred outflows of resources 131,530 276,091 176,858 23,945 608,424
LIABILITIES
Current liabilities
Accounts payable 467,472 235,882 90,400 614,220 1,407,974 Accrued liabilities - 22,911 41,681 18,228 82,820
Deposits - 60,500 - - 60,500
Total current liabilities 258,793 527,972 132,081 632,448 1,551,294 Non-current liabilities
Advances from other funds 16,235,000 2,265,000 - - 18,500,000 Compensated absences 77,540 38,247 45,913 1,058 162,758 Net pension liabilities 188,799 89,944 120,941 16,374 416,058 Total noncurrent liabilities 2,393,191 16,501,339 166,854 17,432 19,078,816 Total liabilities 2,651,984 17,029,311 298,935 649,880 20,630,110
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 7,722 16,209 10,383 1,406 35,720 Total deferred inflows of resources 7,722 16,209 10,383 1,406 35,720
NET POSITION
Net investment in capital assets 2,575,760 6,075,176 394,682 - 9,045,618 Unrestricted/(deficit) 1,099,293 1,525,553 1,305,045 (214,051) 3,715,840 Total net position $ 7,174,469 4,101,313 $ 1,699,727 $ (214,051) $ 12,761,458 $ Business-Type Activities - Enterprise Funds
See accompany notes. 11
CITY OF COALINGA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION –
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Total
Natural Proprietary
Water Sewer Gas Sanitation Funds
Operating Revenue
Charges for services 5,695,463 $ 1,640,153 $ 4,078,026 $ 2,600,774 $ 14,014,416 $ Connection charges 1,400 - - - 1,400
Total operating income 1,640,153 5,696,863 4,078,026 2,600,774 14,015,816 Operating Expense
Personnel 1,564,620 685,565 879,230 78,970 3,208,385
Contractual services and utilities 1,261,033 652,432 998,383 2,649,511 5,561,359 Supplies and materials 1,060,022 202,442 160,865 45,046 1,468,375 Cost of sales 1,103,412 - 2,143,414 - 3,246,826
Bad debt 22,083 10,504 15,892 22,146 70,625
Depreciation 250,037 547,488 60,368 - 857,893
Total operating expense 1,800,980 5,558,658 4,258,152 2,795,673 14,413,463 Operating income/(loss) (160,827) 138,205 (180,126) (194,899) (397,647) Nonoperating Revenue/(Expense)
Intergovernmental - 267,804 - - 267,804
Development impact fees 16,149 43,704 - - 59,853
Interest income 297,029 17,702 5,175 747 320,653
Miscellaneous 45,021 22,700 - 30,726 98,447
Gain (loss) on sale of assets (3,124) - - - (3,124)
Interest expense (67,522) (509,224) - - (576,746)
Total nonoperating revenue/(expense) 284,388 (154,149) 5,175 31,473 166,887 Net income/(loss) before transfers (15,944) 123,561 (174,951) (163,426) (230,760) Operating Transfers In/(Out) (51,643) 103,286 (51,643) - - Change in Net Position 71,918 87,342 (226,594) (163,426) (230,760) Net Position
Beginning of year 7,102,551 4,013,971 1,926,321 (50,625) 12,992,218 End of year $ 7,174,469 4,101,313 $ 1,699,727 $ (214,051) $ 12,761,458 $ Business-Type Activities - Enterprise Funds
See accompany notes. 12
CITY OF COALINGA
STATEMENT OF CASH FLOW - PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Total
Natural Business-Type
Water Sewer Gas Sanitation Funds
Operating Activities
Receipts from customers and users 5,342,328 $ 1,652,594 $ 3,965,807 $ 2,566,741 $ 13,527,470 $ Payments to employees (1,341,899) (588,588) (736,752) (59,367) (2,726,606) Payments for contractual services and utilities (1,268,493) (477,384) (1,199,827) (2,389,904) (5,335,608) Payments to suppliers (1,060,022) (202,442) (159,892) (45,046) (1,467,402) Payments for cost of sales - (1,103,412) (2,143,414) - (3,246,826) Net cash provided by (used in)
operating activities 384,180 568,502 (274,078) 72,424 751,028 Non-capital Financial Activities
Payments from other governments - 92,001 - - 92,001
Payments (to)/from other funds (121,643) (136,714) (51,643) - (310,000) Net cash provided by (used in)
noncapital financing activities (29,642) (136,714) (51,643) - (217,999) Capital and Related Financing Activities
Development impact fees received 16,149 43,704 - - 59,853 Rental income received 45,021 22,700 - 30,726 98,447
Purchase of property, plant and equipment (406,293) (654,720) - (1,061,013) - Interest paid on long-term debt (67,522) (509,224) - - (576,746) Net cash provided by (used in)
capital and related financing activities (655,838) (854,347) - 30,726 (1,479,459) Investing Activities
Interest received 13,237 294,399 3,949 709 312,294
Net cash provided by (used in)
investing activities 13,237 294,399 3,949 709 312,294
Net Increase (Decrease) in Cash (128,160) (288,063) (321,772) 103,859 (634,136) Cash
Beginning of year 3,630,226 8,891,064 1,410,875 45,817 13,977,982 End of year $ 3,342,163 8,762,904 $ 1,089,103 $ 149,676 $ 13,343,846 $ Business-Type Activities - Enterprise Funds
See accompany notes. 13
CITY OF COALINGA
STATEMENT OF CASH FLOW - PROPRIETARY FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
Total
Natural Business-Type
Water Sewer Gas Sanitation Funds
Reconciliation of cash to financial statements:
Cash and investments 1,234,499 $ 3,342,163 $ 1,089,103 $ 149,676 $ 5,815,441 $ Cash and investments with fiscal agent 7,528,405 - - - 7,528,405 $ 3,342,163 8,762,904 $ 1,089,103 $ 149,676 $ 13,343,846 $ Cash Flows from Operating Activities
Operating income (loss) 138,205 $ (160,827) $ (180,126) $ (194,899) $ (397,647) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 547,488 250,037 60,368 857,893 -
Loss on fixed assets - - 973 - 973
Changes in assets and liabilities:
(Increase) decrease in Accounts Receivable (345,652) 22,945 (96,327) (11,887) (430,921) (Increase) decrease in prepaids (2,889) (1,818) (1,100) (7) (5,814) (Increase) decrease in deferred outflows of resources (61,451) (29,275) (39,364) (5,330) (135,420) Increase (decrease) in accounts payable (4,571) 174,479 (220,186) 241,714 191,436 Increase (decrease) in accrued liabilities - 2,387 - - 2,387 Increase (decrease) in deposists and other liabilites 13,200 - 19,842 17,900 50,942 Increase (decrease) in compensated absences (1,226) (9,712) (978) 181 (11,735) Increase (decrease) in deferred inflows of resources 597 285 382 52 1,316 Increase (decrease) in net pension liability 135,679 284,801 182,438 24,700 627,618 Net Cash Provided (Used in) Operating Activities $ 384,180 568,502 $ (274,078) $ 72,424 $ 751,028 $ Business-Type Activities - Enterprise Funds
See accompany notes. 14
CITY OF COALINGA
STATEMENT OF FIDUCIARY NET POSTION
JUNE 30, 2023
Coalinga Total
Successor Ayres/Beason Private Purpose
Agency Scholarship Trust Funds
ASSETS
Cash and investments 956,948 $ 50,246 $ 1,007,194 $
Cash and investments with fiscal agent 107 - 107
Intergovermental receivables 1,036,837 - 1,036,837
Interest receivable 1,036 89 1,125
Prepaid - 33 33
Notes receivable 63,766 - 63,766
Land held for sale - 131,250 131,250
Total assets 50,335 2,189,977 2,240,312
LIABILITIES
Accounts payable and accrued expense 4,209 - 4,209
Accrued liabilities 2,337 - 2,337
Due to other government 373,843 - 373,843
Interest payable 18,546 - 18,546
Long-term Debt
Due within one year 1,182,000 - 1,182,000
Due in more than one year - 3,609,096 3,609,096
Total liabilities 5,190,031 - 5,190,031
DEFERRED INFLOWS OF RESOURCES
Gain on bond refunding - 5,414 5,414
Total deferred inflows of resources 5,414 - 5,414
NET POSITION
Net position held in trust for:
Redevelopment dissolution and other purposes (3,005,468) - (3,005,468) Scholarship - 50,335 50,335
Total net position (deficit) $ (3,005,468) 50,335 $ (2,955,133) $ See accompany notes. 15
CITY OF COALINGA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2023
Coalinga Total
Successor Ayres/Beason Private Purpose
Agency Scholarship Trust Funds
ADDITIONS
Property taxes $ - 1,129,630 $ 1,129,630 $
Investments, rents and other earnings 174 3,547 3,721
Total additions 174 1,133,177 1,133,351
DEDUCTIONS
Administrative costs (292,761) - (292,761)
Interest and fiscal agency expenses - 237,511 237,511
Total deductions - 322,593 322,593
Change in Net Position 174 810,584 810,758
Net Position
Beginning of year 50,161 (3,816,052) (3,765,891)
End of year $ 50,335 (3,005,468) $ (2,955,133) $
16 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies
Reporting Entity
The City of Coalinga, California (the “City”) was incorporated as a general law city in 1906. The City operates under a Council-Manager form of government. The City's major operations include public safety; highways and streets; water, sewer, natural gas, transit and refuse collection; parks and recreation; building inspection; public improvements; planning and zoning, and general administrative services. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. There are no discretely presented component units included in these financial statements.
Blended Component Unit - The Coalinga Public Financing Authority (“CPFA”) was established in 1991 through a Joint Exercise of Powers Agreement between the City, the Agency, and the Coalinga-Huron Unified School District. The formation of the joint powers authority was approved by the City Council who is also designated as the Board of Directors for the CPFA. The City Manager is appointed Secretary with the City staff providing all support services. The purpose of the CPFA is solely to provide funds from the sale of revenue bonds to finance or refinance the costs of various projects for the City. The City set up the CPFA to act as a financing/lending type institution only. The CPFA/City legislative meetings are held concurrently.
The CPFA is reported as a debt service fund and does not issue separate financial statements.
Basis of Accounting – Fund Accounting
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.
Government-Wide Financial Statements – The statement of net position and the statement of activities display information about the primary government (the City) and its component unit. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double-counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are included in the program expense reported for individual function. Certain indirect costs, which cannot be identified and broken down, are included in the program expense reported for individual functions and activities. Program revenues include, 1) fines, fees, and charges paid by the recipients of goods and services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. 17 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Fund Financial Statements – The fund financial statements provide information about the City’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. An accompanying schedule is presented to reconcile and explain the differences in funds and changes in fund balances as presented in these statements to the net position and changes in net position presented in the government- wide financial statements.
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 Coalinga Public Financing Authority Debt Service Fund is used to account for revenues and expenditures of the CPFA Revenue Bonds. Bond proceeds are to be used to finance or refinance the costs of various improvement projects for the City and other public agencies.
The Low-Moderate Housing Asset Special Revenue Fund accounts for monies received and expended for low- and moderate-income housing activities pursuant to AB1484.
The CalTrans Special Revenue Fund accounts for monies received and expended for street projects from the California Department of Transportation.
Enterprise fund financial statements include a statement of net position, statement of revenues, expenses and changes in net position, a statement of cash flows for each major enterprise fund and nonmajor funds aggregated.
The City has four major enterprise funds: the Water Fund, Sewer Fund, Natural Gas Fund, and Sanitation Fund, which are used to account for operations that are financed and operated in a manner similar to private business enterprise. In an enterprise fund, the intent of the City Council is that costs (expenses, including depreciation) of providing services to the general public, on a continuing basis, be financed or recovered primarily through user charges.
The City reports the following major enterprise funds:
Water Fund – The Water Fund accounts for the activities of the City’s water production and distribution operations.
Sewer Fund – The Sewer Fund accounts for the activities of the City’s sanitary sewer system operations.
Natural Gas – The Natural Gas Fund accounts for the operation and maintenance of the City’s natural gas system.
Sanitation Fund – The Sanitation Fund accounts for the operation and maintenance of the City’s sanitation system.
18 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Basis of Presentation – Fund Accounting
The City's fiduciary funds are used to account for resources held for the benefit of parties outside the government. The fund’s activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. Fiduciary funds are not reflected in the government-wide statements because the resources of those funds are not available to support the City’s own programs.
Fiduciary funds are presented on an economic resources measurement focus and the accrual basis of accounting, similar to the government-wide financial statements.
Private-Purpose Trust Fund – The Private-Purpose Trust Fund accounts for assets held by the City as trustee for the Successor Agency and Ayres/Beason Scholarships.
The City reports the following private purpose trust funds:
The Coalinga Successor Agency Fund accounts for the assets and liabilities of the former Redevelopment Agency and its allocated revenue to pay estimated installment payments of the enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated.
The Ayres/Beason Scholarship Fund accounts for the assets and liabilities of the Ayres/Beason scholarship.
Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. 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 revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental Fund Financial Statements – Governmental funds are reported using current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government 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 expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. 19 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Property taxes, sales 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. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of yearend). All other revenue items are considered to be measurable and available only when cash is received by the government.
The proprietary and private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water fund, sewer fund, natural gas fund, sanitation fund, and utility billing funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Financial Statement Amounts
Cash and Investments – Cash and investments represent the City's cash bank accounts including but not limited to certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows.
The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as result of this pooling are distributed to the appropriate funds based on year-end cash balances in each fund. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund. Investments are stated at cost or amortized cost.
Restricted Cash with Fiscal Agent – The City has funds held by trustee or fiscal agents pledged to the payment or security of bonds and are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. The City reports restricted cash with fiscal agent in the CPFA debt service fund, the Water and Sewer enterprise funds, and the Coalinga Successor Agency private- purpose trust fund. Amounts reported in these funds are restricted for debt service payments and specific projects.
20 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Accounts Receivable – These are comprised primarily of revenues that have been earned but not yet received by the City as of June 30 from individual customers, private entities and government agencies. In addition, this account includes accrued revenues due from other agencies for expenditure driven types of grants whereby the City accrues grant revenues for expenditures/expenses incurred but not yet reimbursed by the grantors. Also, property taxes earned but not received from the County of Fresno as of June 30 and unbilled services for utility and other services delivered to customers but not billed as of June 30, are included in this account. Management determines the allowance for doubtful accounts by evaluating individual customer accounts. Utility customer closed accounts are written off when deemed uncollectible. Recoveries to utility customer receivables previously written off are recorded when received.
The City uses an independent billing company to bill and collect on all ambulance services. Ambulance billings consist of amounts owed by individuals for services rendered for ambulance transport. Management is not able to create a reasonable estimate of the collectability of existing accounts. In addition, the outstanding receivables are deemed unavailable as the City typically receives payment after the availability period of 60 days. The City records all ambulance receipts on a cash basis.
Property Tax Calendar – Fresno County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year. Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year-end. Property tax on the unsecured roll are due on the January 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year-end accrual.
The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1 per $100 of full cash value.
Interfund Receivables/Payable – During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.
21 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Assets Held for Resale – Assets held by the City or the Coalinga Successor Agency for the purpose of improving and reselling are accounted for in the account. Property is valued at the lower of cost or net realizable value.
Capital Assets – Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City's capitalization threshold is met.
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the Government- Wide Financial Statements. Capital assets are defined by the government as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities are included as part of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
Years
Infrastructure 10 - 50
Buildings, structures and improvements 5 - 40
Water storage rights 40
Transmission and distribution equipment 5 - 50
Rolling equipment 2 - 30
Office equipment 3 - 10
Right-to-use lease assets – Lease agreements are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payment made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service.
Right-to-use lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life on the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised.
22 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Unearned revenue – Is that for which recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).
Unavailable Revenue – In the fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations.
Deferred Outflows and Inflows of Resources – The City recognizes deferred outflows and inflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net position by the government that is applicable to a future reporting period. Refer to Notes 9 and 11 for a detailed listing of the deferred outflows and deferred inflows of resources the City has recognized.
Interest Payable – In the government-wide financial statements, interest payable of long-term debt is recognized as the liability is incurred for the governmental fund-types and proprietary-fund types.
In the fund financial statements, proprietary fund-types recognize the interest payable when the liability is incurred.
Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases, which it has determined is the prime rate at the inception of the lease. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long- term debt on the statement of net position. 23 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and enterprise fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease. The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
Long-Term Debt – In the government-wide, proprietary fund and fiduciary fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, proprietary fund and fiduciary fund financial statements. Bond premiums and discounts are deferred and amortized on a straight-line basis over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Gains or losses from refunding of debt are reported as deferred outflows or inflows of resources and amortized over the shorter of the life of the refunded debt or refunding debt. Amortization of these balances is recorded as a component of interest expense.
Prepaid bond insurance costs are amortized using the straight-line method over the life of the bonds.
Amortization of these balances is recorded as a component of operating expenses.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 24 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Compensated Absences – It is the City's policy to permit all employees to accumulate earned but unused vacation, sick pay and compensatory time benefits. Those employees on shift work schedules may also accumulate hours for holiday time benefits.
Vested or accumulated vacation, holiday and eligible sick leave along with any compensation time that is expected to be paid with expendable available financial resources is reported as an expenditure in the fund financial statements of the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the Government-Wide Financial Statements.
Vested leave of Proprietary Funds are recorded as an expense and liability as the benefits accrue.
Pensions – In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting (see Note 10 and the RSI section immediately following the notes to financial statements), regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The City recognizes a net pension liability/(asset) for each qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the City’s fiscal year-end or the City’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. Changes in the net pension liability/(asset) during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability/(asset) that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense.
Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred.
Net Position/Fund Balance – The government-wide and business-type activities fund financial statements utilize a net position presentation. Net positions are categorized as net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted Net Position – This category presents external restrictions on net position imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position – This category represents net position of the City, not restricted for any project or other purpose.
25 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) When both restricted and unrestricted net position are available, restricted resources are depleted first before the unrestricted resources are used.
Fund Balance – In the fund financial statements, government fund balance is made up of the following components:
Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation.
Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. Assigned: This classification includes amounts that are constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the City Council or through the City Council delegating this responsibility to the City manager through the budgetary process. This classification also includes the remaining positive fund balance for all governmental funds except for the General Fund.
Unassigned: This classification includes amounts that have not been assigned to other funds or restricted, committed or assigned to a specific purpose within the City.
The City would typically use restricted fund balances first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds.
Encumbrances – The City does not use encumbrance accounting.
Grant Revenues – Certain grant revenues are recognized when specific related expenditures have been incurred. In other grant programs, monies are virtually unrestricted as to purpose of expenditure and are only revocable for failure to comply with prescribed compliance requirements. These revenues are recognized at the time of receipt, or earlier if susceptible to accrual criteria are met. Cash received prior to incurrence of the related expenditure is recorded as unearned revenue.
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 26 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 – Summary of Significant Accounting Policies (Continued) Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.
In accordance with applicable sections of the California Government Code and the Coalinga Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds. Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.
All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered.
Deficit Net Position
Prior to February 1, 2012, the California Redevelopment Law provided tax increment financing as a source of revenue to redevelopment agencies to fund redevelopment activities. Once a redevelopment area was adopted, the former Agency could only receive tax increments to the extent that it could show on an annual basis that it had incurred indebtedness that must be repaid with tax increments. Due to the nature of the redevelopment financing, the former Agency liabilities exceeded assets. Therefore, the Agency historically carried a deficit, which was expected to be reduced as future tax increment revenues were received and used to reduce its outstanding long-term debt. This deficit was transferred to the Coalinga Successor Agency on February 1, 2012. At June 30, 2023, Coalinga Successor Agency has a deficit of $3,005,468, which will be eliminated with future redevelopment property tax revenues distributed from the Redevelopment Property Tax Trust Fund administered by the County’s Auditor-Controller.
27 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 2 – Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments $ 31,030,721
Cash and Investments with fiscal agent 8,048,524
Fiduciary Funds:
Cash and Investments 1,007,194
Cash and Investments with fiscal agent 107
Total Cash and Investments $ 40,086,546
Cash and investments as of June 30, 2023 consist of the following:
Cash on hand $ 2,652
Deposits with financial institutions 33,847,964
Investments 6,235,930
Total Cash and Investments $ 40,086,546
Fair Value Measurements
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:
Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.
Level 2: Inputs to valuation methodology include inputs – other than quoted prices included within Level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The asset’s or liability’s fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 28 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 2 – Cash and Investments (Continued)
Following is a description of the valuation methodologies used for assets measured at fair value.
LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements 92 days 20% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 5 years 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Authorized Investment Type
29 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 2 – Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investments 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 types that are authorized for investments held by the bond trustee.
The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
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. One of the ways that the City manages its exposure to interest rate risk is by maintaining funds in liquid, short-term investments which can be converted to cash when necessary to meet disbursement requirements. The City's investment in the Local Agency Investment Fund (“LAIF”) is available for withdraw in one business day.
30 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 2 – Cash and Investments (Continued)
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60 More Than
Fair Value or Less Months Months 60 Months
State investment pool 6,235,930 $ 6,235,930 $ - $ - $ - $ Total 6,235,930 $ 6,235,930 $ - $ - $ - $
Investment Type
Remaining Maturity (in months)
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 investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (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.
Minimum
Legal Not
Fair Value Rating Rated
State investment pool 6,235,930 $ N/A $ 6,235,930
Total $ 6,235,930 6,235,930 $
Investment Type
Ratings at Year-End
Concentration of Credit Risk
Concentration of credit risk is the risk that the failure of any one issuer would place an undue financial burden on the City. The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated in the California Government Code. The City does not have any investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total investments by reporting unit. 31 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 2 – Cash and Investments (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a city will not be able to recover its deposits or will not be able to recover collateral securities that are in possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by the state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under the state law (unless so waived by the government 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.
The carrying amounts of the City’s cash deposits totaled $33,847,964 at June 30, 2023. Bank balances were $34,102,403, the total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the City’s name.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 32 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 – Accounts Receivables
Summaries of accounts receivable and the corresponding allowances for uncollectibles at June 30, 2023 are as follows:
Coalinga Public Low-Moderate
Financing Housing Other Total
General Authority Debt Asset Special Governmental Governmental Fund Service Fund Revenue Fund CalTrans Funds Funds
Accounts receivable $ 47,018 $ - $ - $ - $ 9,021 $ 56,039 Interest receivable 22,482 1,935,656 3,651 - 7,474 1,969,263 Lease receivable 166,554 - - - 166,554
Due from other governments 711,722 - 28,842 107,152 3,665,177 4,512,893 Notes receivable - 2,727,613 - - 2,727,613 -
Bonds receivable 619,942 - - - - 619,942
2,555,598 947,776 2,760,106 107,152 3,681,672 10,052,304 Less: allowance for uncollectible - - - - - -
Accounts receivable, net $ 2,555,598 947,776 $ 2,760,106 $ 107,152 $ 3,681,672 $ 10,052,304 $ Total
Natural Proprietary
Water Sewer Gas Sanitation Funds
Utility receivables $ 1,128,875 $ 225,539 $ 435,013 $ 430,989 $ 2,220,416 Due from other government - 175,803 - 175,803 -
Interest receivable 5,883 3,146 1,643 59 10,731
1,132,021 407,225 436,656 431,048 2,406,950
Less: allowance for uncollectible (309,427) (123,737) (89,354) (167,441) (689,959) Accounts receivable, net 822,594 $ 283,488 $ 347,302 $ 263,607 $ 1,716,991 $ Note 4 – Notes Receivable
Notes receivable of $1,227,613 represent monies loaned to homebuyers in connection with a down payment assistance program. The loans are secured by real property with repayment due upon the sale of real property or starting at the end of the 30-year deferral period. At the time of sale, the seller pays the loan balance in full without interest. Starting at the end of the 30-year deferral period, the borrower is required to repay the Down Payment Assistance Loan, without interest, over the following 15 years.
Additionally, the City allocated $1,500,000 in Successor Agency Housing Bond Proceeds as a residual receipts loan to Warthan Place Investors, LP (Warthan) for the construction of the Warthan Place Apartments Multi-Family Housing Project. The City will be repaid through a residual receipts agreement with Warthan at a 1.0% interest rate.
33 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 – Interfund Activities
Current Interfund Receivables/Payables
Current interfund balances are generally short-term loans to cover temporary cash deficits in various funds and are expected to be repaid shortly after the end of the fiscal year. The City’s interfund receivables and payables consisted of the following at June 30, 2023:
Due To Due From
Major Funds:
General Fund 548,471 $ - $
Nonmajor Funds:
Grants Fund - 548,471
$ 548,471 548,471 $
Long-Term Interfund Advances
Long-term interfund advances are advances to other funds that are not expected to be repaid in one year or less. The City’s long-term interfund advances consisted of the following at June 30, 2023:
Advances To Advances From
Major Funds:
Coalinga Public Financing Authority Debt Service Fund 18,500,000 $ - $ Water Fund - 16,235,000
Sewer Fund - 2,265,000
$ 18,500,000 18,500,000 $
Bonds Receivable and Payable
The following is a summary of interfund bonds receivable and bonds payable at June 30, 2023:
Bonds Bonds
Receivable Payable
Major Funds:
Coalinga Public Financing Authority Debt Service Fund $ 619,942 $ - Fiduciary Funds:
Coalinga Successor Agency Fund 619,942 -
$ 619,942 619,942 $
Transfer In/Out
Transfer In Transfer Out
Major Funds:
Water Fund $ 103,286 $ -
Natural Gas Fund - 51,643
Sewer Fund 51,643 -
$ 103,286 103,286 $
34 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 – Interfund Activities (Continued)
Interfund Advances and Bonds Receivables and Payables
Bonds receivable consists of debt instruments purchased by the Coalinga Public Financing Authority (CPFA), which was established in 1991 through a Joint Exercise of Powers Agreement between the City, the former Redevelopment Agency of the City of Coalinga, and the Coalinga-Huron Unified School District. The formation of the joint powers authority was approved by the City Council who is also designated as the Board of Directors for the CPFA. The purpose of the CPFA is solely to provide funds from the sale of revenue bonds to finance the costs of various projects for the City and other external agencies. The City set up the CPFA to act as a financing/lending type institution only. In financing the various capital improvement projects, the CPFA purchased bonds, entered into lease/sub-lease agreements and capital financing contracts with the City and other external agencies. The following is a list of the debt instruments comprising the long-term interfund advances and bonds receivable balances in the CPFA debt service fund as of June 30, 2023:
In March 2021, the CPFA loaned $16,475,000 and $2,335,000 to the Water and Sewer enterprise funds, respectively, for the purpose of financing the Water Improvement Projects and the refunding of the 2012 Series Revenue Bonds. The outstanding balance as of June 30, 2023 in the Water and Sewer enterprise funds was $16,235,000 and $2,265,000, respectively.
35 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 6 – Capital Assets – Capital asset activities for the year ended June 30, 2023 were as follows:
Balance Balance
July 1, 2022 Additions Retirements June 30, 2023
Governmental Activities
Capital assets, not being depreciated
Land 2,321,946 $ 50,476 $ - $ 2,372,422 $
Construction in progress 3,136,006 2,623,124 (3,384,894) 2,374,236 Total capital assets, not being depreciated 3,186,482 4,945,070 (3,384,894) 4,746,658 Capital assets, being depreciated/amortized
Buildings and improvements 13,582,683 305,836 - 13,888,519 Infrastructure 41,036,277 3,363,519 44,399,796 -
Machinery and equipment 7,575,534 283,748 (381,159) 7,478,123 Right-to-use equipment - 227,622 - 227,622
Total capital assets, being depreciated/amortized 4,180,725 62,194,494 (381,159) 65,994,060 Less accumulated depreciation/amortization for
Buildings and improvements (7,717,891) (269,127) - (7,987,018) Infrastructure (24,160,070) (558,357) (24,718,427) -
Machinery and equipment (3,720,261) (537,289) 329,970 (3,927,580) Right-to-use equipment (32,750) - - (32,750)
Total accumulated depreciation/amortization (1,397,523) (35,598,222) 329,970 (36,665,775) Total capital assets, being depreciated/amortized, net 2,783,202 26,596,272 (51,189) 29,328,285 Governmental activities capital assets, net $ 5,969,684 31,541,342 $ (3,436,083) $ 34,074,943 $ Business-Type Activities
Capital assets, not being depreciated
Land 1,068,039 $ - $ - $ 1,068,039 $
Construction in progress 918,907 1,568,720 (598,832) 1,888,795 Total capital assets, not being depreciated 918,907 2,636,759 (598,832) 2,956,834 Capital assets, being depreciated
Building 9,937,774 - - 9,937,774
Improvements other than buildings 28,763,167 598,832 29,361,999 - Machinery and equipment 141,133 5,031,439 (568,512) 4,604,060 Total capital assets, being depreciated 739,965 43,732,380 (568,512) 43,903,833 Less: accumulated depreciation (857,893) (28,815,949) 565,388 (29,108,454) Total capital assets, being depreciated, net (117,928) 14,916,431 (3,124) 14,795,379 Business-type activities capital assets, net $ 800,979 17,553,190 $ (601,956) $ 17,752,213 $ 36 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 6 – Capital Assets (Continued)
Depreciation and amortization expense were charged to the following functions in the Statement of Activities:
Governmental Functions:
General Government 221,489 $
Public Works 640,851
Community Development 6,384
Public Safety 528,799
$ 1,397,523
Business-Type Functions:
Water 547,488 $
Sewer 250,037
Natural Gas 60,368
$ 857,893
37 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 – Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.
The City’s debt transactions are summarized below and discussed in detail thereafter:
Restated
Balance Balance Current
July 1, 2022 Additions Retirements June 30, 2023 Portion Governmental Activity Long Term Debt
Direct Placements:
Bonds Payable:
2000 Tax Allocation Bonds 619,942 $ - $ - $ 619,942 $ - $ 2021A Series Revenue Bonds (Water & Sewer) 10,610,000 - (310,000) 10,300,000 310,000 2021B Series Revenue Bonds (Water) - 8,200,000 - 8,200,000 130,000 Subtotal 19,429,942 - (310,000) 19,119,942 440,000
2021 Bond premiums 493,173 - (17,154) 476,019 -
2021 Deferred Loss on Refunding (334,398) - 12,986 (321,412) - Accreted Interest 152,754 1,779,401 - 1,932,155 -
Total Bonds Payable 152,754 21,368,118 (314,168) 21,206,704 440,000 Direct Borrowings:
Financed Purchases:
Police Vehicles 216,141 (97,347) - 118,794 38,338
Police Motorola Radios 552,791 (188,958) - 363,833 179,609 Fire Equipment - 1,312,000 (280,000) 1,032,000 286,000
Total Governmental Activity Debt $ 152,754 23,449,050 $ (880,473) $ 22,721,331 $ 943,947 $ Lease Liabilities
Government Activities $ - 201,769 $ (26,767) $ 175,002 $ Compensated Absences
Government Activities $ 98,206 376,212 $ - $ 474,418 $
Business-Type Activities $ - 174,493 $ (11,735) $ 162,758 $ Net Pension Liability/(Asset)
Government Activities $ 2,139,205 (581,558) $ - $ 1,557,647 $ Business-Type Activities $ 627,618 (211,560) $ - $ 416,058 $ Long-term debt payable at June 30, 2023 was comprised of the following individual issues:
Coalinga Public Financing Authority Bonds - The CPFA was established in 1991 through a Joint Exercise of Powers Agreement between the City, the Agency, and the Coalinga-Huron Unified School District. The formation of the joint powers authority was approved by the City Council who is also designated as the Board of Directors for the CPFA.
The purpose of the CPFA is solely to provide funds from the sale of revenue bonds to finance or refinance the costs of acquiring, constructing, or improving and equipping capital improvements (projects) for the City, the Agency, the Coalinga-Huron Unified School District, the Coalinga Hospital District, the West Hills Community College District, and other external agencies. The City set up the CPFA to act as a financing/lending type institution only.
38 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 – Long-Term Debt (Continued)
Based on the financing/lending institution perception, financial reporting for the CPFA is through a conservative revenue/expenditure flow approach. The revenue/expenditure stream shows the true details of each financing agreement in addition to the initial Marks-Roos Bond Pool issue for the CPFA.
The CPFA shows revenues from the various financing agreements (i.e., payments of principal and interest) and expenditures for its own debt service. In addition, the CPFA balance sheet reflects bonds receivable which is offset by a corresponding amount in deferred revenue.
CPFA bonds outstanding at June 30, 2023 are as follows:
2000 Tax Allocation Bonds – In 2000 the CPFA issued bonds in the amount of $3,404,942 to be used for RDA activities and is a capital appreciation bond. The principal payments are made each September and interest is paid semi-annually in September and March through 2018. The interest rates range from 5.2 to
5.85 percent.
2021A Revenue Refunding Bonds (Water and Sewer) – In March 2021, the City issued the 2021 Revenue Refunding Bonds for the principal amount of $10,610,000. The issuance was to refund the outstanding principal balance of the 2012 Water and Sewer Revenue Bonds described above. The City refunded the above debts to reduce its total debt service over 26 years by $3,477,709 and to obtain an economic gain (difference between the present values of debt service payments on the old and new debt) of $1,656,502. The bonds bear interest at .539% - 3.559% and are payable semi-annually commencing October 2021 through April 2048. 2021B Revenue Refunding Bonds (Water) - In March 2021, the City issued the 2021B Revenue Refunding Bonds for the principal amount of $8,200,000. The issuance was to finance Water Improvement projects. The bonds bear interest at 2.375% - 4.0% and are payable semi-annually commencing October 2021 through April 2051.
Debt service is secured by a pledge of net revenues of the City’s Water and WasteWater Systems. The City covenants that it shall prescribe, revise and collect such charges for the services and facilities of the water and wastewater systems which shall produce revenues sufficient in each fiscal year to provide gross revenues which are sufficient to pay all water and wastewater operation and maintenance costs and all bond installment payments and produce net wastewater revenues equal to at least 1.25 times debt service coming due and payable during such fiscal year. The City is in compliance with those covenants as of June 30, 2023. Cash basis debt service paid during the fiscal year ended June 30, 2023 totaled $562,798. Total water and wastewater system net revenues was $2.6 million and net revenue available for debt was $2 million at June 30, 2023.
39 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 – Long-Term Debt (Continued)
Police Vehicles Financed Purchase – In April 2021, the City purchased five police vehicles totaling $265,795 at 3.411% interest rate. The principal and interest payments totaling between $42,200 to $61,059 are made annually between April and May beginning in 2023 through 2026.
Fire Equipment Financed Purchase – In May 2021, the City entered into a financed purchase for certain fire apparatus and related equipment totaling $1,455,000 at 1.02% interest rate. The principal and interest payments totaling between $145,691 to $153,780 are made semi-annually on March 1st and September 1st beginning in 2023 through 2026.
Police Motorola Radios Financed Purchase – In October 2021, the City entered into financed purchase for police radios totaling $552,791 at 2.570% interest rate. The principal and interest payments totaling between $188,958 are made annually on September 1st beginning in 2023 through 2024.
The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2023 were as follows:
Years ending June 30, Principal Interest Totals
2024 943,947 $ 597,256 $ 1,541,203 $
2025 961,809 580,668 1,542,477
2026 795,873 562,584 1,358,457
2027 758,429 548,055 1,306,484
2028 607,047 535,860 1,142,907
2029-2033 2,942,464 4,813,931 7,756,395
2034-2038 3,040,000 2,024,922 5,064,922
2039-2043 3,570,000 1,493,683 5,063,683
2044-2048 4,165,000 896,110 5,061,110
2049-2052 186,963 2,850,000 3,036,963
$ 20,634,569 12,240,032 $ 32,874,601 $
Governmental Activities
40 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 – Leases
In fiscal year 1991, the City’s General Fund leased a portion of land to a third party. The lease was initially for five years with the five options to extend for five additional years, or for a total of 30 years, of which the City anticipates will be exercised. The City received monthly payments of $1,207 with the amended lease agreement for the duration of the initial lease period with a 3% increase during each five year extension. The City recognized $13,710 in lease revenue and $1,104 in interest revenue during the current fiscal year. As of June 30, 2023, the City’s receivable for lease payments was $166,554. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2023, the balance of the deferred inflow of resources was $76,188.
In fiscal year 2023, the City entered into a five-year lease agreement as lessee for six vehicles. This lease is recorded in the General Fund and had an initial lease liability in the amount of $201,769. As of June 30, 2023, the value of the lease liability was $175,022. The City is required to make monthly principal and interest payments averaging $3,159. The lease has an interest rate of 4.5%. The vehicles has an estimated useful life of five years. The value of the right-to-use asset as of the end of the current fiscal year was $194,872 and had accumulated amortization of $32,750.
The future principal and interest lease payments as of June 30, 2023, are as follows:
Fiscal Years
Ending June 30 Principal Interest Total
2024 36,659 $ 10,724 $ 47,383 $
2025 39,200 8,183 47,383
2026 41,921 5,462 47,383
2027 44,835 2,548 47,383
2028 12,387 246 12,633
Totals 175,002 $ 27,164 $ 202,166 $
Note 9 – Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item to report in this category:
The City has $2,688,231 pension related items that qualify to be reported in deferred outflows of resources. The pension related deferred outflows of resources are described in detail in Note 11.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items that qualify for reporting in this category:
41 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 9 – Deferred Outflows/Inflows of Resources (continued) The City has $298,297 in pension related items that qualify to be reported in deferred inflows of resources. The pension related deferred inflows of resources are described in Note 11. The City has $76,188 in deferred inflow of resources associated with a lease receivable that will be recognized as revenue over the lease term.
Unavailable revenues arise only under a modified accrual basis of accounting and is reported only in the governmental funds balance sheet. The City has $2,727,613 in notes and loans receivable reported in the Low-Moderate Housing Asset Fund and $2,638,172 in the Local Transporation Fund reported as deferred inflows of resources reported for unavailable revenues.
Note 10 - Other Employee Benefits
The City offers medical, dental, vision, chiropractic and prescription insurance coverage, as well as group life insurance coverage, to employees and their dependents. Additionally, the City offers an employee assistance program to assist employees and their families with problem assessment and short-term counseling needs.
The City pays a portion of premiums in connection with the insurance coverage offered by the City.
City Employee Post Retirement Benefits
In accordance with federal requirements, the City provides its retirees the opportunity to continue enrollment in the City's health insurance program. Premium charges paid by retirees are intended to cover the full cost of benefits provided without cost to the City. For the year ended June 30, 2023, no retirees were enrolled in the health insurance program.
Employee Deferred Compensation Plan
The City offers and Employee Deferred Compensation Plan created in accordance with the Internal Revenue Code Section 457 to its employees, allowing them to defer or postpone receipt of income. Amounts so deferred may not be paid to the employee during employement with the City except for a catastrophic circumstance creating an undue financial hardship for the employee.
Effective January 1, 1999, Federal legislation (Small Business Job Protection Act of 1996) requires the Section 457 plan assets to be placed in trust for the exclusive use of the plan participants and their beneficiaries.
The City’s deferred compensation administrator, the International City Managers’ Association (ICMA) or Verisight qualifies as the plan trustee to meet Federal requirements. Since the plan assets are no longer considered property and rights of the City, such assets are no longer reflected in the accompanying basic financial statements.
The City also offers to two employees a deferred compensation plan created in accordance with Internal Revenue Code Section 401(a). All amounts deferred and invested under this plan, with related interest, are the property and rights of the participating employees and, as such, are not relected in the accompanying basic financial statements.
42 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – Defined Benefit Pension Plan
California Public Employees’ Retirement Plan (CalPERS)
General Information about the Pension Plan
Plan Description – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple-Employer Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors five rate plans (two miscellaneous and three safety.) Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the Plan are applied as specified by the Public Employees’ Retirement Law. 43 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – Defined Benefit Pension Plan
The Plans’ provisions and benefits in effect at June 30, 2023 are summarized as follows:
Miscellaneous Classic PEPRA Miscellaneous
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.0% at 55;
maximum 2% COLA
2.0% at 62;
maximum 2% COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 55 62
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 6.25%
Required Employer Contribution Rates 10.320% 7.470%
Safety Classic PEPRA Safety
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit Formula 2.0% at 55;
maximum 2% COLA
2.0% at 57;
maximum 2% COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 55 57
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 9.50%
Required Employer Contribution Rates 14.740% 10.800%
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions towards the unfunded liability and side fund, if applicable. The dollar amounts are billed on a monthly basis.
The City’s required contribution for the unfunded liability was $87,094 for the fiscal year ended June 30, 2023.
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
The City’s contributions to the plan that were recognized as a part of pension expense for the year ended June 30, 2023 were $680,415.
44 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – Defined Benefit Pension Plan (Continued)
Pension Liabilities, Pension Expense and Deferred Outflows/Inflows of Resources As of June 30, 2023, the City reported a net pension liability/(asset) for its proportionate share of the Plan of Net Pension Liability/(Asset):
1% Decrease
(5.90%)
Current
Discount Rate
(6.90%)
1% Increase
(7.90%)
Net Pension Liability/(Asset):
Miscellaneous Plan $ 1,803,416 $ 761,592 $ (95,570)
Safety Police Plan $ 2,719,205 $ 1,212,113 $ (19,594)
The City’s net pension liability/(asset) for the Plan is measured as the proportionate share of the net pension liability/(asset). The net pension liability/(asset) of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City’s proportion of the net pension liability/(asset) was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability/(asset) for the Plan as of June 30, 2022 and 2023 was as follows:
Safety
Proportion - June 30, 2022 -0.011560%
Proportion - June 30, 2023 0.017640%
Change - Increase/(Decrease) 0.029200%
Miscellaneous
-0.020390%
0.016280%
0.036670%
For the year ended June 30, 2023, the City recognized pension credit of $2,420,612. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date 816,578 $ - $
Difference between expected and actual experience
65,459 (23,406)
Difference in projected and actual contributions - (274,891) Change in employer's proportion 1,275,022 -
Changes in assumptions 200,259 -
Net differences between projected and
actual earnings on pension plan investments - 330,913
Total $ (298,297) 2,688,231 $
45 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – Defined Benefit Pension Plan (Continued)
$816,578 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability/(asset) in the year ended June 30, 2023.
Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
June 30
2024 615,677 $
2025 499,051
2026 256,539
2027 202,087
Thereafter -
Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
in accordance with the
requirements of GASB Statement
No. 68
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS'
Membership Date for all Funds
1 Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection
Allowance Floor on Purchasing
Power applies
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
All other actuarial assumptions used in the June 30, 2017 valuation was based on the results of a December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.
Changes of Assumptions – None.
46 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – Defined Benefit Pension Plan (Continued)
Discount rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The long-term expected real rates of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2022.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These rates of return are net of administrative expenses.
Asset Class
Assumed Asset
Allocation
Real Return
Years 1-10
1,2
Global Equity - Cap-weighted 30% 4.54%
Global Equity - Non-cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-back Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
Total 100%
1 An expected inflation of 2.30% used for this period. 2 Figures are based on the 2021-22 Asset Liability Management Study 47 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 – Defined Benefit Pension Plan (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability/(Asset) to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability/(asset) for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability/(asset) would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease
(5.90%)
Current
Discount Rate
(6.90%)
1% Increase
(7.90%)
Net Pension Liability/(Asset):
Miscellaneous Plan $ 1,803,416 $ 761,592 $ (95,570)
Safety Police Plan $ 2,719,205 $ 1,212,113 $ (19,594)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Payable to the Pension Plan
The City did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.
Note 12 – Risk Management
The City is a member of the Public Agency Risk Sharing Authority for California (PARSAC), a public entity risk pool in which there is a transferring (sharing) of risk among the pool participants. The City pays an annual premium to PARSAC for its general liability coverage. PARSAC is self-sustaining through member premiums. The City is insured under a retrospectively rated policy in which the initial premium is adjusted based on actual experience during the period of coverage. The City is responsible for all claims up to $25,000 per occurrence for general and auto liability with a coverage limit at June 30, 2023 of $975,000.
The City’s risk management program also includes fire, property and automobile insurance. The coverage includes an all risk-replacement cost blanket. Additionally, the City has property insurance coverage up to $975,000 per occurrence.
The City provides worker’s compensation and employer’s liability coverage on all employees through PARSAC. This insurance is paid entirely by the City. All premiums are paid by the appropriate fund designation for each employee’s salary and benefits. In the risk management program for the City, a proactive approach is taken toward work safety for employees. Various training sessions and inspections are conducted throughout the year. The result has been a continued reduction of work related injury claims. 48 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 13 – Contingent Liabilities and Commitments
General Liability
There are various claims and legal actions pending against the City for which no provision has been made in the financial statements. In the opinion of the City Attorney and City Management, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.
Federal Awards and Grants
The City has received federal grants for specific purposes that are subject to review and audit by the federal government. Although such audits could result in expenditure disallowances under grant terms, any required reimbursements are not expected to be material.
Note 14 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through March 22, 2024, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023 that required recognition or disclosure in such financial statements.
Note 15 – Deficit Net Position Balance
The Sanitation Fund had a deficit net position balances as of June 30, 2023 of $214,051. The deficit is expected to be relieved from future revenues or transfers from the General Fund.
Note 16 – Expenditures in Excess of Budget
The General Fund had expenditures in excess of budget of $668,507, $275,942, and $15,766 in capital outlay, principal, and interest appropriation category, respectively. The excess expenditures over budgeted amounts is covered in savings in other appropriation categories.
Note 17 – Coalinga Successor Agency Private Purpose Trust On January 30, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with Assembly Bill 1X26 (the “Bill”) which dissolved all redevelopment agencies in the State of California. Under the control of an oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution of the redevelopment agency (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
Successor agencies are only allocated revenue in the amount that is necessary to pay estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. 49 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 17 – Coalinga Successor Agency Private Purpose Trust (Continued) Cash and Investments - A reconciliation of the Coalinga Successor Agency Private Purpose Trust Fund’s cash and investments as of June 30, 2023 is as follows:
Fiduciary Funds:
Cash and Investments $ 956,948
Cash and Investments with fiscal agent 107
Total Cash and Investments $ 957,055
Long-Term Liabilities - The following is a summary of long-term liabilities transactions for the Coalinga Successor Agency Private Purpose Trust Fund at June 30, 2023:
Balance
June 30, 2022 Additions (Deductions)
Balance
June 30, 2023 Current
Bonds Payable
Series 2000 Tax Allocation Bonds 619,942 $ -$ $ 619,942 - $ -$ Series 2000 Tax Allocation Bonds - Accreted Interest 1,779,400 152,754 1,932,154 - - 2018 Tax Allocation Refunding Bonds - 3,384,000 (1,145,000) 2,239,000 1,182,000 $ 152,754 5,783,342 $ (1,145,000) $ 4,791,096 $ 1,182,000 $ 2018 Successor Agency Tax Allocation Refunding Bonds
In 2018, the Successor Agency of the City of Coalinga issued Tax Allocation Refunding Bonds in the aggregate principal amount of $5,657,000 to refund the 2009 RDA Tax Allocation Bonds and a portion of the 2000 RDA Tax Allocation Bonds. This was done to take advantage of lower interest rates and to save on future debt service payments. As a result, the 2009 RDA Tax Allocation Bonds and a portion of the 2000 RDA Tax Allocation Bonds are considered defeased and the liability for those bonds is not included in fiduciary fund (private-purpose trust fund) statement of net position. The total debt service payments were reduced by $1,214,868. The original amount of the note - $5,657,000 – was secured by a pledge of tax revenues consisting of tax increment payments to be received by the Successor Agency. Semiannual payments range from $7,625 to $1,213,794 and are payable each March 15 and September 15 through 2025.
The annual debt service requirement schedule is as follows:
Years ending June 30, Principal Interest Totals
2024 $ 1,182,000 $ 46,803 $ 1,228,803
2025 520,000 22,635 542,635
2026 537,000 7,625 544,625
2027 140,429 564,571 705,000
2028 132,047 572,954 705,001
2029-2031 1,767,534 347,466 2,115,000
$ 2,982,122 2,858,942 $ 5,841,064 $
50 CITY OF COALINGA
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 18 – Net Position Restated
Beginning net position for the government-wide activities was adjusted for the understatement of deferred refunding costs of $334,398, the effect of this increased beginning net position by $334,398, respectively.
Governmental Activities
Beginning net position, previously stated $ 59,855,560
Prior Period Adjustments
(Overstatement)/understatement of deferred refunding 334,398 Increase/(Decrease) to fund balance/net position 334,398 Beginning fund balance/net position, restated $ 60,189,958
REQUIRED SUPPLEMENTARY INFORMATION
51 CITY OF COALINGA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 7,314,700 $ 7,314,700 $ 8,042,040 $ $ 727,340
Licenses and permits 1,545,964 1,545,964 945,191 (600,773) Intergovernmental 30,000 30,000 1,981,449 1,951,449
Charges for services 2,141,100 2,141,100 2,139,316 (1,784) Fines and forfeitures 15,300 15,300 11,911 (3,389)
Interest and rents 123,000 123,000 170,991 47,991
Other 15,100 15,100 143,987 128,887
Total revenue 11,185,164 11,185,164 13,434,885 2,249,721 Expenditures
Current
General government 1,166,521 1,166,521 1,135,425 31,096 Public works 444,385 444,385 343,538 100,847
Community development 653,187 653,187 443,545 209,642
Public safety 10,504,494 10,504,494 8,807,897 1,696,597 Capital outlay 373,000 373,000 1,041,507 (668,507)
Debt service
Principal 280,000 280,000 555,942 (275,942)
Interest and fiscal charges - 12,673 15,766 (15,766)
Total expenditures 13,421,587 13,434,260 12,343,620 1,077,967 Revenue over (under) expenditures (2,249,096) (2,236,423) 1,091,265 3,327,688 Other Financing Sources
Capital lease proceeds - - 201,769 201,769
Transfers in (out) - net (3,865) (3,865) - 3,865
Total other financing sources (3,865) (3,865) 201,769 205,634 Net Change in Fund Balance $ (2,240,288) (6,751,153) $ 1,293,034 $ 3,533,322 Fund Balance
Beginning of year 16,135,336
End of year $ 17,428,370
52 CITY OF COALINGA
BUDGETARY COMPARISON SCHEDULE
CALTRANS FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 2,145,954 2,145,954 $ 1,309,994 $ (835,960) $ Total revenue 2,145,954 2,145,954 1,309,994 (835,960)
Expenditures
Current
Public works - 10,178 - (10,178)
Capital outlay 193,800 193,800 1,416,638 (1,222,838)
Total expenditures 193,800 193,800 1,426,816 (1,233,016) Change in Fund Balance $ 1,952,154 1,952,154 $ (116,822) $ (2,068,976) Fund Balance
Beginning of year 249,294
End of year $ 132,472
53 CITY OF COALINGA SCHEDULE OF CITY’S PROPORTIONATE SHARE OF NET PENSION LIABILITY (ASSET) LAST 10 YEARS* YEAR ENDED JUNE 30, 2023 Proportion of the net
pension liability
Proportionate share of the net
pension liability (asset)
Covered - employee
payroll
Proportionate share of the net
pension liability as percentage of
covered-employee payroll
Plan's fiduciary net
position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2015 -0.00040% $ (24,764) $ 2,141,042 -1.16% 3,526,312 $ 100.77% 2016 -0.00261% $ (179,376) $ 2,145,722 -8.36% 3,880,421 $ 104.85% 2017 0.00303% $ 156,661 $ 2,248,951 6.97% 4,428,175 $ 96.58%2018 0.00515% $ 307,854 $ 2,285,727 13.47% 5,183,451 $ 94.39% 2019 0.00507% $ 297,259 $ 2,079,202 14.30% 6,052,001 $ 95.32%2020 0.00755% $ 471,246 $ 1,921,567 24.52% 6,969,329 $ 93.67%2021 0.01117% $ 744,196 $ 2,620,397 28.40% 7,436,506 $ 90.90%2022 -0.01156% $ (405,858) $ 2,827,637 -14.35% 9,479,880 $ 104.47% 2023 0.01764% $ 1,212,113 $ 3,202,504 37.85% 9,701,058 $ 88.89% Proportion of the net
pension liability
Proportionate share of the net
pension liability (asset)
Covered - employee
payroll
Proportionate share of the net
pension liability as percentage of
covered-employee payroll
Plan's fiduciary net
position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2015 -0.00254% $ (157,918) $ 2,675,362 -5.90% 2,916,022 $ 105.73% 2016 -0.00774% $ (212,430) $ 2,524,649 -8.41% 4,271,137 $ 105.23% 2017 0.00230% $ 79,836 $ 2,485,868 3.21% 4,393,422 $ 98.22% 2018 0.00520% $ 205,163 $ 2,514,668 8.16% 4,798,406 $ 95.90%2019 0.00420% $ 158,391 $ 2,185,347 7.25% 5,039,017 $ 96.95%2020 0.00726% $ 290,630 $ 2,160,485 13.45% 5,377,986 $ 94.87% 2021 0.01039% $ 438,323 $ 2,251,865 19.46% 5,708,927 $ 92.87%2022 -0.02039% $ (387,260) $ 2,756,233 -14.05% 6,933,651 $ 10.60% 2023 0.01628% $ 761,592 $ 2,776,187 27.43% 6,881,006 $ 90.03% Safety
Miscellaneous
* Fiscal year 2015 was the first year of implementation; therefore only nine years are shown. 54 CITY OF COALINGA SCHEDULE OF CONTRIBUTIONS LAST 10 YEARS* YEAR ENDED JUNE 30, 2023 Contractually required
contribution (actuarially
determined)
Contributions in relation to the
actuarially determined
contributions
Contributions deficiency
(excess) Covered-employee payroll
Contributions as a
percentage of
covered-employee
payroll
2015 403,029 $ (403,029) $ - $ 2,141,042 $ 18.82%
2016 230,903 $ (230,903) $ - $ 2,145,722 $ 10.76%
2017 255,938 $ (255,938) $ - $ 2,248,951 $ 11.38%
2018 243,442 $ (243,442) $ - $ 2,285,727 $ 10.65%
2019 260,592 $ (260,592) $ - $ 2,079,202 $ 12.53%
2020 239,528 $ (239,528) $ - $ 1,921,567 $ 12.47%
2021 315,713 $ (315,713) $ - $ 2,620,397 $ 12.05%
2022 410,014 $ (410,014) $ - $ 2,827,637 $ 14.50%
2023 426,771 $ (426,771) $ - $ 3,202,504 $ 13.33%
Contractually required
contribution (actuarially
determined)
Contributions in relation to the
actuarially determined
contributions
Contributions deficiency
(excess) Covered-employee payroll
Contributions as a
percentage of
covered-employee
payroll
2015 278,931 $ (278,931) $ - $ 2,675,362 $ 10.43%
2016 165,587 $ (165,587) $ - $ 2,524,649 $ 6.56%
2017 200,782 $ (200,782) $ - $ 2,485,868 $ 8.08%
2018 194,921 $ (194,921) $ - $ 2,514,668 $ 7.75%
2019 177,734 $ (177,734) $ - $ 2,185,347 $ 8.13%
2020 207,624 $ (207,624) $ - $ 2,160,485 $ 9.61%
2021 224,127 $ (224,127) $ $ - $ 2,251,865 9.95%
2022 $ 270,401 $ (270,401) $ - $ 2,756,233 9.81%
2023 $ 291,740 $ (291,740) $ - $ 2,776,187 10.51%
Safety
Miscellaneous
* Fiscal year 2015 was the first year of implementation; therefore only nine years are shown.
SUPPLEMENTARY INFORMATION
See accompanying notes. 55
CITY OF COALINGA
BUDGETARY COMPARISON SCHEDULE
COALINGA PUBLIC FINANCING AUTHORITY FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Interest 728,667 $ 728,667 $ 787,138 $ 58,471 $
Other - - - -
Total revenue 728,667 728,667 787,138 58,471
Expenditures
Current
General government
Debt Service - 11,566 - (11,566)
Principal 310,000 310,000 310,000 -
Interest and fiscal charges 303,488 303,488 577,893 (274,405) Total expenditures 613,488 613,488 899,459 (285,971)
Revenue over expenditures 115,179 115,179 (112,321) (227,500) Change in Fund Balance $ 115,179 115,179 $ (112,321) $ (227,500) Fund Balance
Beginning of year 24,440,950
End of year $ 24,328,629
See accompanying notes. 56
CITY OF COALINGA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 Grants Gas SB1 Local
Fund Tax RMRA Fund Measure C Transportation
ASSETS
Cash and investments $ - $ 135,964 $ 123,106 $ 1,521,537 $ 1,197,777 Accounts receivable, net - - - - -Interest receivable 8 214 183 2,739 2,264 Due from other governments 675,328 39,480 70,654 176,272 2,638,172 Prepaids 33 - - - -
Total assets $ 175,691 675,336 $ 193,943 $ 1,700,548 $ 3,838,213 $
LIABILITIES
Accounts payable and accrued expense 33,384 $ 24,870 $ 48,444 $ 193,887 $ 15,099 $ Deposits and claims payable - - - - -Unearned revenues 22,897 - - - -Due to other funds - 548,471 - - - Total liabilities 24,870 604,752 48,444 193,887 15,099
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - 2,638,172
Total deferred inflows of resources - - - - 2,638,172
FUND BALANCE
Restricted
Debt service - - - - -Street maintenance 70,584 150,821 145,499 1,506,661 -LTF Article 8 - - - - 1,184,942Public safety - - - - -Economic development - - - - -Low-income housing activities - - - - - Unassigned - - - - -
Total fund balance 70,584 150,821 145,499 1,506,661 1,184,942 Total liabilities, deferred inflows of
resources, and fund balance 675,336 $ 175,691 $ 193,943 $ 1,700,548 $ 3,838,213 $ Special Revenue Funds
See accompanying notes. 57
CITY OF COALINGA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2023 Capital Projects Debt Service Total
Fund Fund Non-major
COPS EDA EDA Development Assessments Governmental
Grants Building Rentals Revolving Loans Impact Fees Debt Service Funds ASSETS
Cash and investments $ 238,800 $ 50,593 $ 59,831 $ 975,242 $ 92,164 $ 4,395,014 Accounts receivable, net - 9,021 - - - 9,021
Interest receivable - 90 105 1,709 162 7,474
Due from other governments 65,271 - - - - 3,665,177
Prepaids - - - - - 33
Total assets $ 59,704 304,071 $ 59,936 $ 976,951 $ 92,326 $ 8,076,719 $
LIABILTIES
Accounts payable and accrued expense 33,618 $ - $ - $ - - $ 349,302 $ Deposits and claims payable - 5,300 - - - 5,300
Due to other funds - - - - - 548,471
Unearned revenues 6,662 - - - - 29,559
Total liabilities 11,962 33,618 - - - 932,632
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - - 2,638,172
Total deferred inflows of resources - - - - - 2,638,172
FUND BALANCE
Restricted
Debt service - - - - 92,326 92,326
Storm drainage and flood control - - - 385,212 - 385,212 Streets and bridges - - - 125,386 - 125,386
Public building and facilities - - - 103,343 - 103,343
Park improvements - - - 283,645 - 283,645
Street maintenance - - - - - 1,873,565
LTF Article 8 - - - - - 1,184,942
Law enforcement and fire 270,453 - - 79,365 - 349,818
EDA Community buildings - 47,742 - - - 47,742
EDA revolving loans - - 59,936 - - 59,936
Unassigned - - - - - -
Total fund balance 270,453 47,742 59,936 976,951 92,326 4,505,915 Total liabilities, deferred inflows of
resources, and fund balance 304,071 $ 59,704 $ 59,936 $ 976,951 $ 92,326 $ 8,076,719 $ Special Revenue Funds
See accompanying notes. 58
CITY OF COALINGA COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 Local
Grants Gas Tax SB1 RMRA Measure C Transportation
Revenue
Licenses, permits and impact fees $ - $ - $ - $ - $ -
Intergovernmental 1,897,322 452,850 403,210 641,602 -
Rental - - - - -
Interest 13 378 182 15,340 4,683
Total revenue 453,228 1,897,335 403,392 656,942 4,683
Expenditures
Public works 1,189,943 349,084 2,753 12,122 290,387
Community development 1,060 - - - -Public safety - - - - - Capital outlay 557,958 - 78,042 815,360 -
Debt service
Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 349,084 1,748,961 80,795 827,482 290,387 Change in Fund Balance 104,144 148,374 322,597 (170,540) (285,704)Fund Balance Beginning of year 46,677 (77,790) (177,098) 1,677,201 1,470,646 End of year $ 150,821 70,584 $ 145,499 $ 1,506,661 $ 1,184,942 $ Special Revenue Funds
See accompanying notes. 59
CITY OF COALINGA COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2023 Debt Service
Capital Projects Fund Fund Total
Non-major
COPS EDA EDA Development Assessments Governmental
Grants Building Rentals Revolving Loans Impact Fees Debt Service Funds Revenue
Licenses, permits and impact fees - $ - $ - $ 13,310 $ - $ 13,310 $ Intergovernmental 145,271 - - - - 3,540,255
Rental 423 172 208 3,389 320 4,512
Interest - - - - - 20,596
Other - - - - - -
Total revenue 172 145,694 208 16,699 320 3,578,673
Expenditures
Public works - - - 3,642 - 1,847,931
Community development - - - - 10 1,070
Public safety 124,999 - - - - 124,999
Capital outlay 22,359 - - - - 1,473,719
Debt service
Principal 37,130 - - - - 37,130
Interest and fiscal charges - 5,070 - - - 5,070
Total expenditures - 189,558 - 3,642 10 3,489,919
Change in Fund Balance 172 (43,864) 208 13,057 310 88,754 Fund Balance
Beginning of year 47,570 314,317 59,728 963,894 92,016 4,417,160 End of year 270,453 $ 47,742 $ 59,936 $ 976,951 $ 92,326 $ 4,505,915 $ Special Revenue Funds
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
INDEPENDENT AUDITOR’S 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
To the Honorable Mayor and City Council
City of Coalinga, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City Coalinga (the “City”), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 22, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 61 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
March 22, 2024
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley, C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Coalinga, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City Coalinga (the “City”), California’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 68 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 68 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
March 22, 2024
68 CITY OF COALINGA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
Assistance Agency or
Federal Grantor/Pass-through Listing Pass-through Federal Grantor/Program Title Number Number Expenditures
U.S. Department of Transportation
Passed through from the California Department of Transportation Highway Planning and Construction 20.205 HSIPL-5146 (014) 28,764 $ Highway Planning and Construction 20.205 CML-5146 (022) 290,647 Highway Planning and Construction 20.205 CML-5146 (029) 35,913 Highway Planning and Construction 20.205 ATPCML-5146 (031) 3,579 Highway Planning and Construction 20.205 ATPL-5146 (020) 1,186 Highway Planning and Construction 20.205 STPL-5146 (024) 4,777 Highway Planning and Construction 20.205 STPL-5146 (026) 96,482 Highway Planning and Construction 20.205 STPL-5146 (028) 698,856 Highway Planning and Construction 20.205 STPL-5146 (030) 42,199 1,202,403
U.S. Department of Housing and Urban Development
Passed through the State of California Department of Housing and Community Development Community Development Block Grant 14.228 20-CDBG-CV1-0037 1,267 $ Community Development Block Grant 14.228 20-CDBG-CBC-3-00008 5,138 Home Investment Partnerships Program 14.239 19-HOME-14965 4,646 11,051
U.S. Department of Treasury
Passed through the State of California Department of Finance Clean Water State Revolving Fund 66.458 C-06-8572-110 267,804 $ 267,804
Total Federal Expenditures $ 1,481,258
68 CITY OF COALINGA
NOTES SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
Note 1 – Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Coalinga, California (the City). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are included in the SEFA. The City’s reporting entity is defined in Note 1 to the City’s basic financial statements.
Note 2 – Basis of Accounting
The accompanying SEFA is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the City’s basic financial statements. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presented in the basic financial statements.
Note 3 – Catalog of Federal Domestic Assistance (CFDA) Numbers The CFDA numbers included in the accompanying SEFA were determined based on program name, review of grant contract information, and the Office of Management and Budget’s Catalog of Federal Domestic Assistance.
Note 4 – Relationship to the Financial Statements
Expenditures of federal awards are reported in the City’s basic financial statements as expenditures/expenses in the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.
Note 5 – Indirect Cost Rate
The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414. 68 CITY OF COALINGA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
A. Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Material weaknesses identified? Yes No
Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported Non-compliance material to financial
statements noted? Yes No
Federal Awards
Internal control over major programs:
Material weaknesses identified? Yes No
Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported Type of auditor’s report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.516(a)? Yes No
Identification of Major Programs
Assistance Listing Number Name of Federal Program or Cluster
20.205 Highway Planning and Construction
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes No
68 CITY OF COALINGA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2023
None.
CITY OF COALINGA
MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2023
TABLE OF
CONTENTS
Page
Required Communications 1 - 3
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 To the Honorable Mayor and City Council
City of Coalinga, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Coalinga for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated July 3, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Coalinga are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2023. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
2 Management’s estimate of the allowance for doubtful accounts is based on an evaluation of collectability primarily focused on past due accounts. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements as a whole.
Management’s estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of the audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated March 22, 2023.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City of Coalinga’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to 3 determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Coalinga’s auditors.
However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the, Budgetary Comparison Schedules, Proportionate Share of Net Pension Liability, and Schedule of Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of City of Coalinga and is not intended to be, and should not be, used by anyone other than these specified parties.
March 22, 2023
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Approve MINUTES - May 2, 2024
Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Shannon Jensen, City Clerk
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
MINUTES_For_Approval_050224.pdf Minutes - May 2, 2024
Minutes – May 2, 2024
MINUTES
CITY COUNCIL/SUCCESSOR
AGENCY/PUBLIC FINANCE AUTHORITY
MEETING AGENDA
May 2, 2024
1. CALL TO ORDER 6:00 PM
Council Members Present: Horn, Ramirez, Vosburg, Schindler, Hedgecock Others Present: City Manager Marissa Trejo, Assistant City Attorney Christina G. Di Filippo, Assistant City Manager Sean Brewer, Chief of Police Jose Garza, Financial Services Director Mai Vang, City Treasurer Dawn Kahikina, Fire Chief Greg DuPuis, Administrative Analyst Mercedes Garcia, and City Clerk Shannon Jensen
Council Members Absent: None
Others Absent: City Attorney Mario Zamora
Changes to the Agenda: City Manager Marissa Trejo announced the following changes to the Agenda:
1. Discussion Item No. 6.1 will be Pulled from the Agena as this item was discussed during the Budget Workshop at 5:00pm.
Motion by Vosburg, Second by Hedgecock to Approve the Agenda for the meeting of May 16, 2024. Motion Approved by 5/0 Roll-Call Majority Vote.
2. AWARDS, PRESENTATIONS, APPOINTMENTS AND PROCLAMATIONS
1. Proclamation: National Public Works Week 2024
Chief of Police Jose Graza presented Corporal Simons with a retirement plaque honoring his years of service.
2. Certificate of Recognition: Westlands Water District 2024 West Side Scholarship Recipients Mayor Pro-Tem Ramirez presented Team Coalinga wrestlers Ivan Zavala, Lexi Garnillo, Nayelia LandaGonzalez and Zulma Mendoza with certificates of recognition their outstanding performance at the 2024 Reno Worlds Championship.
Minutes – May 2, 2024
3. Employee of the Month for May 2024
City Manager Marissa Trejo presented Murphy Milligan with an Employee of the Month certificate for May 2024.
3. CITIZEN COMMENTS
The following individual(s) spoke under Citizen Comments:
Kyle Savage, Field Representative for Congressman John Duarte’s office, spoke of Congressman Duarte’s introduction of H.R. 7816, legislation to make the push to reform and improve the Department of Veterans Affairs (VA) letters and correspondence to veterans to ensure that veterans and their survivors are receiving notice letters from VA that are concise, understandable, and provide sufficient information from them to make informed, clear decisions on their claims for VA benefits.
Hilda Crawford announced that the Coalinga-Huron District Library will open registration for the Summer Reading Program on June 15, 2024, and will run through July 27, 2024. There will be entertainment and crafts each Saturday during the program. Children ages 0 to adults can participate for incentives and a chance to win a basket.
Tina Yeadon of Yeadon’s Gold Star Wellness Center, a local Non-profit, announced that they continue to add classes. Silver Sneakers is on Tuesdays and Wednesday and participants are allowed up to 8 free classes per month. Chair yoga is offered on Mondays and Wednesdays. Other activities for May include making free bracelets for Mother’s Day, Vision Boards for your career goals, and family yoga. The center will also be providing mental health services like a 12 step and other counseling programs.
The following individual(s) submitted written comment(s):
None
4. PUBLIC HEARINGS
None
5. CONSENT CALENDAR
1. Approve MINUTES – April 18, 2024
2. Check Register: 03/01/2024 – 03/31/2024
3. Information Only – Caltrans Response to the Jayne Ave/SR33 Traffic Signal Warrant Study Prepared by the City
Councilman Vosburg Pulled Item No. 5.3 for discussion.
Assistant City Manager Sean Brewer provided a brief overview of the item.
Minutes – May 2, 2024
Councilman Vosburg expressed frustration over Caltrans response and requested that they attend an upcoming meeting to address traffic control concerns at Jayne Avenue and State Route 33.
4. Declare 2022 Toyota Prius as Surplus Property and Authorize Disposal
5. Approve Contract Agreement with Fresno County for Ambulance Services
6. Authorize City Manager to Approve Engagement Letter Received from Bryant L. Jolley, CPA for Auditing Services for Fiscal Year 2023-2024
7. Waive Second Reading and Adopt Ordinance No. 866 related to a Zoning Ordinance Amendment and Finding of Categorical Exemption under the California Environmental Quality Act (CEQA) for Electric Vehicle Parking Standards in Accordance with Assembly Bill 1236 and Assembly Bill 970 – Zoning Text Amendment Application ZTA 24-02
8. Consideration of Bid Award for WTP Upgrades – Raw Water Intake Improvement Project Councilman Vosburg Pulled Item No. 5.08 for discussion.
Assistant City Manager Sean Brewer provided a brief overview of the item stating that staff expects the project to be finalized in January 2025.
9. Authorize Assistant City Manager to Execute a Task Order with City Engineer for Preliminary Engineering and Construction Engineering and Construction Engineering Services for Durian Street and Birch Street Rehabilitation Project in Addition to Adding said Project to the FY24 Budget as Amendment
10. Direct Staff to Coordinate Random DUI Checkpoint Events with California Highway Patrol within City Limits
Councilman Vosburg Pulled Item No. 5.10 for discussion.
Chief of Police Jose Graza provided a brief overview of the item.
Councilman Vosburg requested information regarding the number of DUIs per month.
Mayor Horn requested information regarding the number of DUI related accidents per month.
Chief Gaza stated the requested information shall be added to the Police Department monthly reports to Council.
11. Direct Staff to Install Two (2) Additional No Parking Signs on Pacific and Forest City Manager Marissa Trejo gave a brief overview of the Item stating this was a Future Agenda Item by Councilman Schindler.
Councilman Vosburg Pulled Item No. 5.11 for discussion.
Minutes – May 2, 2024
Assistant City Manager Sean Brewer provided a brief overview of the item.
Councilman Vosburg believes the signs had been removed by a contractor that had recently been working on a project in the area and requested that staff reach out for funds to replace the two signs.
Motion by Schindler, Second by Horn to Approve Consent Calendar Item Nos. 5.1 through 5.11. Motion Approved by a 5/0 Roll-Call Majority Vote.
6. ORDINANCE PRESENTATION, DISCUSSION AND POTENTIAL ACTION ITEMS
1. Fiscal Year 2024-2025 Proposed Budget Discussion and Direction – Revenue Budget Proposal Mai Vang, Financial Services Director
Item No. 6.1 was Pulled from the Agenda during Changes to the Agenda.
2. Discussion, Direction and Potential Action regarding Applying for Encampment Resolution Funding Program Round 3
Marissa Trejo, City Manager
City Manager Marissa Trejo provided a brief overview of the item, stating this was a Future Agenda Item brought by Councilman Schindler.
Jill Mohler of Blais & Associates presented pros and cons of the Encampment Resolution Funding Program Round 3.
7. ANNOUNCEMENTS
City Manager’s Announcements:
City Manager Marissa Trejo announced that information on Fresno Economic Opportunity Commission community services was added to the City Facebook page, services include:
Low-Income Home Energy Assistance Program (LIHEAP)
Program helps offset eligible Fresno County household’s home energy costs.
Sanctuary Transitional Shelter within Fresno
Overnight shelter for homeless or otherwise displaced youth and young adults.
Permanent Supportive Housing (PSH)
Assists chronically homeless individuals and/or families.
Bridge Housing
Individuals and family that have identified housing plan and are in need of a safe and accessible place to wait unit their housing plan next steps can take place.
TXT 4 HELP
Nationwide , 24-hour text for -support service for teens in crisis.
Low Income Household Water Assistance Program (LIHWAP)
Financial help to eligible Fresno County residents for their residential water utility bills.
Minutes – May 2, 2024
Council Member’s Announcements:
Mayor Pro-Tem urged the community to vote for Coalinga Horned Toads to win the national mascot contest.
Mayor’s Announcements:
None
8. FUTURE AGENDA ITEMS
Councilman Vosburg requested a Future Agenda Item for information on the City assisting Coalinga-Huron Recreation and Parks District with reopening park restrooms.
9. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION. Initiation of Litigation Pursuant to Section 54956.9(d)(4): 1 Case
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS – Government Code Section 54956.8.
PROPERTY: APN: 071-020-16S, 071-020-23S, 071-020-66S, 072-222-02ST. CITY NEGOTIATOR: City Manager Marissa Trejo, Assistant City Manager Sean Brewer, and City Attorney Mario Zamora. NEGOTIATING PARTIES: Andrew Alam Lewis Revocable Trust PENSCO Trust Co Joel Nelson, Jacob Tanz and Wendy L. Tanz, James M. Evans & Joy E. Evans, Roy Kumar, Charles E. Simmons & Julia W. Simmons, Mark Morris and Jo Ann Morris, Andrew A.
Lewis, William A. Burgett and Sally B. Lewis. UNDER NEGOTIATION: Terms of Property Purchase, Including Price.
10. CLOSED SESSION REPORT
None
11. ADJOURNMENT 7:04 PM
APPROVED:
___________________________________
James Horn, Mayor
ATTEST:
___________________________________
Shannon Jensen, City Clerk
___________________________________
Date
May 16, 2024
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Information Only: Sales Tax Update Quarter 4 October 2023 - December 2023 Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Mai Vang, Financial Services Director
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
Coalinga_4Q23_Newsletter.pdf Coalinga 4Q23 Newsletter
www.hdlcompanies.com | 888.861.0220
Q4 2022*
Q4 2023*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Fuel and
Service
Stations
County
and State
Pools
Restaurants
and
Hotels
Food
and
Drugs
Autos
and
Transportation
General
Consumer
Goods
Building
and
Construction
Business
and
Industry
CITY OF COALINGA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Spring 2024
AutoZone
Big 5 Sporting Goods
Billingsley Tire Service
Burger King
Cafe Coalinga
Chevron
Coalinga Hardware
Coalinga Valley Market
Dollar General
Dollar Tree
Fastrip
Fatte Alberts Pizza
High Times
Little Caesars Pizza
McDonald’s
O’Reilly Auto Parts
Rite Aid
Save Mart
State Foods
Taco Bell
Tacos Y Mariscos Sergio
Triple J Ready Mix
Valley Food Mart
Walgreens
West Hills Oil
SALES TAX UPDATE
CITY OF COALINGA
4Q 2023 (OCTOBER - DECEMBER)
Coalinga’s receipts from October
through December were 0.7% above the
fourth sales period in 2022. Excluding
reporting aberrations, including late
and missing payments, receipts for the
period were down 1.7%.
Fortunately, the decline in terms of
dollars was insignificant this period.
While most major business groups
generated at least modest gains, the
business-industry and construction
groups saw a drop-off in sales as
development and maintenance
activities declined. The city’s allocation
from the countywide use tax pool
was smaller this period as the pool
itself shrank in size. Finally, fast food
restaurants eked out a minor gain this
quarter, but casual dining venues saw
less patronage overall.
Measure J’s results surprised this period.
Expanded purchases of new vehicles
by residents and businesses, coupled
with several one-time purchases of
office supplies and equipment provided
most of the increase. Meanwhile, the
demand for imported construction
materials was limited compared to last
year.
Net of aberrations, taxable sales for all
of Fresno County declined 3.5% over
the comparable period while those of
the San Joaquin Valley were flat.
TOTAL:
13.4%
$648,113
Measure J
TOTAL: $ 313,053
-1.7% -3.5% -2.5%
COUNTY STATE
COALINGA
4Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '23
Coalinga
Business Type Change Change Change
County HdL State
Service Stations 56,935 3.1% -5.5% -4.9%
Quick-Service Restaurants 32,140 4.5% 1.9% 0.4%
Grocery Stores 19,908 15.6% -0.3% -4.6%
Automotive Supply Stores 19,050 10.7% -1.2% -2.3%
Casual Dining 7,107 -31.3% 0.8% 1.8%
Government/Social Org. 2,004 -12.3% 21.6% 0.7%
Receivables/Master Outlets 1,661 465.5% 7.9% 12.6%
Auto Repair Shops 1,203 -39.2% -0.7% -3.0%
*Allocation aberrations have been adjusted to reflect sales activity
REVENUE BY BUSINESS GROUP
Coalinga This Calendar Year*
15%
Pools
14%
Restaurants
7%
Autos/Trans.
5%
Building
4%
Bus./Ind.
6%
Cons.Goods
13%
Food/Drug
37%
Fuel
*ADJUSTED FOR
ECONOMIC DATA
4Q 2023 CITY OF COALINGA SALES TAX UPDATE
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts during the months of October
through December were 2.5% lower than
the same quarter one year ago after adjusting
for accounting anomalies. The fourth quarter
is notably the highest sales tax generating
quarter of the year and exhibited diminished
year-over-year returns as consumers
balanced higher prices and financing costs
with essential household needs.
Higher interest rates impacted the autotransportation sector, especially luxury vehicles, as the group dropped 6.2%.
Inventories for many dealers returned,
creating downward pressure on prices,
further constraining receipts. Lenders have
tightened credit standards, making loan
financing challenging. Improved leasing
activity was the lone bright spot. With slow
movement expected by the Federal Treasury
setting interest rate policy, future revenue
growth may stagnate.
Fuel and service stations contributed a
similar downturn, as lower fuel prices
reduced receipts from gas stations and
petroleum providers. While this has been
the trend throughout 2023, recently global
crude oil prices have been on the rise and
should see growth in the coming year. This
decline also impacted the general consumer
goods category as those retailers selling fuel
experienced a similar drop.
During this holiday shopping period, general
consumer goods experienced lackluster sales
as results pulled back 3.4%. Most sectors saw
reductions with home furnishings, women’s
apparel, shoe and electronic-appliance
stores being the most significant. Returns
also marked the fourth consecutive quarter
showing comparable declines. Similar to the
anticipated trend of new vehicles, consumer
spending may be sluggish in the near term.
Even though revenue from most major sectors
slowed, restaurant sales remained steady
with a modest gain of 1.0%. Results from
casual dining establishments grew during the
early winter period as patrons enjoyed indoor
dining. However, following the greater trend
of consumers looking for value, fine dining
eateries experienced lower receipts. The
industry is still bracing for implementation
of AB 1228, a new law increasing minimum
wages for ‘fast food restaurants’, on April 1,
2024.
Use taxes remitted via the countywide pools
grew 1.0%, marking the first positive rebound
after four consecutive quarters of decline.
While overall online sales volume is steady,
pool collections contracted more taxes
allocated directly to local agencies via in-state
fulfillment and through existing retail outlets.
Statewide, calendar year 2023 ended with a
2.3% decline from 2022. Elevated inflation
and interest rates led to higher cost of goods
resulting in consumers not spending as much
as they had prior. Following multiple years
of post-pandemic tax growth assisted by
federal tax policy and temporary workplace
accommodations, consumers reassessed
their economic conditions and limited
purchases. As the Federal Reserve considers
delaying softening rates, consumer spending
could likely stagnate delaying a return to the
normal historical growth trend in 2024.
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Information Only: California Consensus Forecast 4Q 2023 Sales Tax Trends Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Mai Vang, Financial Services Director
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
California_Consensus_Forecast_4Q_2023.pdf California Consensus Forecast 4Q2023 888.861.0220 | [email protected] | hdlcompanies.com
CALIFORNIA FORECAST
SALES TAX TRENDS & ECONOMIC DRIVERS
APRIL 2024
Sonoma, CA
STATEWIDE
SALES TAX TRENDS
2023/24 | 2024/25 2023/24 | 2024/25
Overview: As 2024 unfolds, many of the same economic conditions remain in play, with varying effects on the overall outlook.
Monitoring the Fed to gauge when interest rates will recede is a primary focus. Monthly unemployment trends and inflation results will determine how swiftly and significantly borrowing costs decrease. Results from the final quarter of 2023 confirmed a shift in consumer behavior, with people opting for essential household items over more expensive purchases. With the exception of Business/Industry and Restaurants/Hotels, all other groups saw negative comparisons to the fourth quarter of 2022. Consumer debt has soared while personal savings dwindle, suggesting only modest gains in the coming fiscal year.
Fuel/Service Stations -2.6% | 1.4%
This sector experienced an overall reduction in the fourth quarter, primarily due to the initially skyrocketing, then plummeting prices of regular and diesel fuel. Oil barrel costs rose more than anticipated, which mitigated the overall reduction in sales tax. A normal historical pattern of prices at the pump, including a boost in the spring and summer months followed by a drop in late fall and early winter, is anticipated throughout calendar years 2024 and 2025. We forecast a minor overall increase in FY 2024 - 25 before returning to stable 2% growth in the outer years.
General Consumer Goods -1.8% | 1.6%
Core retail categories fell short of expectations for the 2023 holiday quarter, leading to a contraction in direct local tax allocations across nearly all business types. This reinforces the anticipated pullback and tightening of family budgets. Recent CPI readings suggest that core goods prices are flat, so expect near-term results to be more influenced by changes in consumption rather than price. While borrowing costs remain elevated and access to cheap credit is now a thing of the past, the forecast lowered near-term expectations for the current fiscal year. The sooner the Fed implements rate cuts, the sooner consumers could feel some relief and return to purchasing beyond essential goods. The outlook expects mild growth in the 2024-25 fiscal year.
Restaurants/Hotels 1.9% | 3.3%
Nationally, rising menu prices are reaching a tipping point where diners are opting to eat out less frequently. In California, this is worsened by the upcoming minimum wage hike for fast food restaurants, effective April 1. Savvy restaurateurs are strategically implementing increases to mitigate sticker shock while preparing for the rising operating costs. Meanwhile, other establishments have responded with significant, noticeable menu price surges, garnering attention nationwide. As consumers still desire to eat out and travel, they are making more cost-conscious decisions, resulting in slower growth.
State and County Pools -0.4% | 2.0%
Ecommerce as a means of purchasing products remained strong.
Online holiday spending across the country grew 5% when compared to the same period last year. More sales were made via mobile than desktop for the first time. Additionally, “buy now pay later” emerged as a popular alternative to credit card or cash usage; however, payment obligations rise in the spring and summer months. Yearto-date pool receipts declined in the first two quarters, affected by taxpayer filing changes and significant reductions in private party auto sales. Expansion of AI and voice search deployment along with improvements in personalized customer experiences through technology investments are expected to bolster future use taxes generated via online transactions. The slight downturn for FY 2023- 24 should turn positive next year.
Autos/Transportation -3.6% | 2.0%
The pricing dynamics of new vehicles, particularly within electric and luxury segments, are adjusting following a period of significant inflation.
Simultaneously, as dealership inventories stabilize, manufacturers are intensifying incentives, leading to reduced transactional values and impacting tax receipts. Dealerships are facing heightened competition and prevailing high lending rates, prompting potential buyers to exercise caution. Reports indicate a substantial tightening of credit conditions, affecting even creditworthy borrowers and contributing to a deceleration in market activity. Projections suggest a gradual market normalization through 2024, a modest resurgence anticipated in the latter half of the year driven by expected reductions in financing rates.
Building/Construction -1.3% | 3.1%
Strong demand for repairs to address storm-damaged roofing bolstered the construction sector. Both material suppliers and roofing contractors reported a second consecutive quarter of new business leading to long wait lists. Contractors are optimistic about new project bids for infrastructure work funded by the Infrastructure Investment and Jobs Act, as they drive more business for asphalt and concrete batch plants. Conversely, home improvement centers and lumber retailers experienced declines. Mortgage rates are decreasing, but not enough to stimulate new construction. When the Fed indicates that conditions warrant a reversal of prior rate hikes, a swift response from this sector is anticipated. Expansion in statewide construction activity is projected for FY 2026-27.
Business/Industry 0.5% | 1.7%
Following several years of expansion, this group experienced a 2.2% dip. Of the group’s 21 different sectors, only six landed in positive territory. Fulfillment centers, accounting for 31% of total revenues, ended the quarter essentially even as ecommerce continued to fill more orders from warehouses based in California. The largest gain occurred in energy/utilities, driven by regional energy/solar projects.
Most significantly, the medical/biotech sector contracted as equipment and supply needs tapered off. Both heavy and light industry faced inventory, pricing, and demand challenges, while sales in businessto-business and office equipment/IT slowed down. Considering the influencing variables for these various sectors, HdL projects limited growth for the current year followed by slow expansion in succeeding years.
Food/Drugs -2.7% | 1.5%
Although inflation has softened, consumer spending at grocery stores declined 5% in Q4 of 2023. Shoppers, anticipating flat sales, pulled back on spending. Convenience-liquor stores experienced diminishing profits as younger adults turned to caffeinated non-alcoholic drinks.
Cannabis retail sales saw a dismal 10% decrease as businesses and investors alike endure ongoing challenges from the illicit market.
Furthermore, as one major drug store chain begins closing multiple locations across the state, consumers are turning to competitors or ecommerce. As this sector right-sizes through closures, mergers, and building consumer confidence, anticipate fewer taxes to be captured in the current year before gradually rising in the coming fiscal year.
TOTAL -1.1% | 2.0%
2023/24 | 2024/25
HdL Companies California Forecast
April 2024
Proposition 172
While Proposition 172 (the 1/2 cent tax rate designated for Public Safety) projections closely track with the statewide Bradley-Burns, calculations vary somewhat due to the state’s allocation methodology. HdL estimates an average statewide decrease of 1.1% for fiscal year 2023-24 and a modest 1.8% gain in 2024-2025. Current projections reflect the county allocation factors published by the SCO in late August 2023 (which should likely change in April 2024). Recent reductions in Bradley-Burns countywide pool allocations elevated direct allocation distributions for a portion of internet-related sales, thus, pro-rata factors are impacted for many counties.
NATIONAL AND STATEWIDE
ECONOMIC DRIVERS
U.S. Real GDP Growth 2.5% | 1.9%
Real GDP grew at an annual rate of 3.2% in 4Q2023, driven by increases in consumer spending, exports, and local and state government expenditures. Despite a decline in confidence, consumer spending rose a solid 2.6%, inflation adjusted, over the past year. Top categories for spending growth include recreational vehicles and goods (12%), new cars (4%), restaurants and hotels (4%) and recreational services (4%). The U.S. will almost certainly experience a reasonable pace of GDP growth in 2024, led by solid growth in consumer demand. Labor markets will remain tight, industrial production will be steady, and long run interest rates will likely stay in the same range. In many ways 2024 will resemble 2023 with a steady, moderately expanding economy.
Strong consumer demand suggests inflation will be running hotter than the 2% pace that the Federal Reserve hopes to achieve.
CA Unemployment Rate 5.2% | 5.4%
The unemployment rate in California has steadily increased since reaching a low of 3.8% in August 2022. In February 2024, unemployment reached 5.3%, marking a 0.8 percentage-point increase year-over-year, and a 0.1 percentage-point increase from the previous month. The state’s unemployment rate remains elevated compared to the 3.9% rate in the United States overall. California continues to struggle with its labor supply, which fell by 6,900 in February. Since February 2020, the state’s labor force has declined by 243,400 workers, a 1.2% decrease. This lack of growth can be attributed to the low number of housing permits issued in California; a workforce cannot grow if there is nowhere for workers to live.
CA Total Nonfarm
Employment Growth 0.8% | 0.7%
California’s total nonfarm employment has grown 20.3% since the economic recovery from the pandemic began. As of February 2024, California had recovered all the jobs that were lost in March and April 2020, and there are now 294,100 more people employed in the state compared to pre-pandemic February 2020. Total nonfarm employment in California has grown 1.7% over this time compared to a 3.6% increase nationally. Job growth has experienced a drag as the labor force has declined in California. Given the sluggishness in labor force growth, the labor market in California is likely to continue cooling.
U.S. Unemployment Rate 3.9% | 4.2%
Unemployment in the nation remains low despite a slight increase from 3.7% in January to 3.9% in February. In January, there were
1.44 job openings for every unemployed person, indicating a tight labor market, despite higher interest rates. The U.S. job openings rate was 5.3%; lower than its peak in March 2022, but still higher than before the pandemic. Tight labor markets will continue to push up real earnings, which grew at rate of 3.6% in 2023. The labor force participation rate remained steady at 62.5%, slightly below the 63.3% rate right before the pandemic began, which is surprising given the strong real earnings growth.
CA Residential
Building Permits 110,931 | 112,638
Excess demand for housing continues to be a significant issue in California. Although the number of residential permits in the state remains above pre-pandemic levels, there are concerns that the current level is insufficient to close the demand gap. Residential permits rose sharply after 2020 and this trend has persisted, reaching an all-time high at the end of 2023. In the fourth quarter of 2023, the number of residential permits increased slightly at a rate of 6.8% year-over-year. Given the recent easing of mortgage rates, residential permits will likely continue to expand, and a moderate increase in permits is expected in the near term.
CA Median Existing
Home Price $717,173| $762,767
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STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Consideration of Bid Award for Animal Shelter Project Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Sean Brewer, Assistant City Manager
I. RECOMMENDATION:
It is recommended that the Coalinga City Council reject all bids due to the bids received exceeded the project budget for the Animal Shelter Project. The apparent lowest bidder is recommended to be deemed nonresponsive due to not including the required bid bond and the second apparent lowest responsive bidder exceeded the budget by 87%. The project is recommended to rebid with a reduced scope at a later date.
II. BACKGROUND:
On April 21, 2022 City Councilallocated $219,000 of the City's ARPA funds to be used to rehabilitate the new animal shelter. This cost was based on the City Engineer's preliminary estimate.
The City Engineer's initial Cost Estimate came in at $397,988.50, which is $178,988.50 over budget. With the help of statistical data provided by Gimme Love, City Manager Trejo completed a grant application with UC Davis. The City of Coalinga received an initial grant of $5,000 for applying and providing data and was recently awarded a grant of $100,000 to assist with the cost of kennels, leaving an overage of $73,988.50.
III. DISCUSSION:
City Staff received and opened two bids for this project on May 7, 2024, at 2:00 p.m. Staff reviewed and determined HBC Enterprises as the apparent low bidder with a total bid proposal of $744,400.00, based on the following: Robbie’s Construction is recommended to be deemed nonresponsive due to not including the required bid bond.
The revised Engineer’s reduced scope estimate was $268,999.00. Staff recommends to reject all bids and rebid the project due to the extreme over budget total.
IV. ALTERNATIVES:
To award the project to HBC Enterprises. The bid summary is included as Attachment “A”. HBC Enterprises has furnished the required bid bond. If the City Council decides to award the project to HBC Enterprises, and the “Notice to Proceed” is issued, the contractor will have 90 working days to complete the work. The following is a tentative schedule:
Award of Contract: May 16, 2024
Start of Construction: July 1, 2024
Completion of Construction: November 6, 2024
V. FISCAL IMPACT:
If awarded the total authorization requested for this Construction Contract is $744,400.00 with an additional 5% contingency of $37,220 for a total of $781,620.00.
This project is funded with $100,000 UC Davis Grant, and $219,000 of ARPA funds.
If all bids are rejected there will be no fiscal impact to the General Fund.
ATTACHMENTS:
File Name Description
Animal_Shelter_Bid_Summary.pdf Bid Summary
City of Coalinga
PW 23-004 Animal Shelter Project
Base Bid Items
Item Description Unit Qty. Engineer's Est. Unit Price Extension Unit Price Extension 1 Interior/Building Improvements LS 1 $ 249,679.00 $ 526,499.40 $ 526,499.40 $ 637,400.00 $ 637,400.00 2 Exterior Improvements LS 1 $ 19,320.00 $ 96,360.00 $ 96,360.00 $ 107,000.00 $ 107,000.00 Base Bid Summary $ 268,999.00 $ 622,859.40 $ 744,400.00 ATTACHMENT "A" Bids 1-2
1 2
Robbies Construction HBC Enterprises
\\2k12server\Company\Docs\2900's\2934 COC Animal Shelter\Bid Docs\Bid Summary.xlsx Date Printed: 5/8/2024, 8:35 AM
Unit Price Extension
$ -
$ -
$ -
3 \\2k12server\Company\Docs\2900's\2934 COC Animal Shelter\Bid Docs\Bid Summary.xlsx Date Printed: 5/8/2024, 8:35 AM
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Adopt Resolution No. 4204 Approving a List of Projects to be Funded by SB 1:
The Road Repair and Accountability Act and Further Authorizing Budget Expense in Amount of $462,377.00 to Execute List of Projects Funded by SB 1 in 2024/2025 FiscalYear
Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Sean Brewer, Assistant City Manager
I. RECOMMENDATION:
City CouncilApprove Resolution No. 4204 Approving a List of Projects to be Funded by SB 1: The Road Repair and Accountability Act and Further Authorizing a Budget Expense in the Amount of $462,377.00 to Execute the List of Projects Funded by SB 1 in the 2024/2025 FiscalYear II. BACKGROUND:
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide. The new transportation bill will generate $54 billion over the next decade, split between state and local agencies.
III. DISCUSSION:
SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year. The City must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.
The City is expected to receive $462,377 in RMRA funding in Fiscal Year 2024/2025 from SB 1 and is recommending using the funds and future funds for the City's annual road repair and maintenance efforts through completing the following project:
Project Title: Sacramento-Warthan Street Improvements Project.
Project Description: This project's scope of work is to improve Sacramento Street and Warthan Street from Forest Street to Tache Way by replacing existing asphalt concrete pavement, existing valley gutter, existing stop bar and stop text markings, and adjusting existing utility lids. Improvements include installation of new A.C. pavement, new aggregate base, new concrete valley, utility lid adjustments, thermoplastic striping, thermoplastic pavement markings, and construction surveying.
Project Location: Beginning at Sacramento Street and Forest Street and extending to Warthan Street and Tache Way just west of the Warthan Street and Tache Way intersection.
Estimated Project Schedule: Design Start (05/24) – Design Completion (02/25) & Construction Start (02/25) – Construction Completion (08/25) based on the component being funded with RMRA funds
Estimated Project Useful Life: 20 years
IV. ALTERNATIVES:
None - this action is required under SB 1 in order to utilize the finding allocated to the City of Coalinga.
V. FISCAL IMPACT:
The City is expected to receive an estimated $462,377 from the Road Maintenance And Rehabilitation Account funds to support the City's annual road and rehabilitation efforts. This new funding must be used on street related project implementation.
ATTACHMENTS:
File Name Description
FY25_SB_1_Project_List_Resolution_No._4204.docx Resolution No. 4204 - SB1 2024-25 Sacramento-Warthan_Improvement_Project_Exhibit___CE_4.29.24.pdf Sacramento Street Project Exhibit RESOLUTION NO. 4204
A RESOLUTION OF THE CITY OF COALNIGA, CITY COUNCIL, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-25 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $462,377 in RMRA funding in Fiscal Year 2024-25 from SB 1; and
WHEREAS, this is the 2024/2025 year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used the City’s Pavement Management System, Street Saveer, to develop the SB 1 project list through analyzing pavement index’s, visual inspection and usable life to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate E. Sacramento Street from Forest Ave to Warthan Street in the City this year and 2-3 similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an fair condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a better condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Coalinga, State of California, as follows:
1. The foregoing recitals are true and correct.
2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2024-2025 Road Maintenance and Rehabilitation Account revenues:
Project Title: Sacramento-Warthan Street Improvements Project Project Description: This project's scope of work is to improve Sacramento Street and Warthan Street from Forest Street to Tache Way by replacing existing asphalt concrete pavement, existing valley gutter, existing stop bar and stop text markings, and adjusting existing utility lids.
Improvements include installation of new A.C. pavement, new aggregate base, new concrete valley, utility lid adjustments, thermoplastic striping, thermoplastic pavement markings, and construction surveying. This project will include surveying, design engineering, construction, testing and construction engineering.
Project Location: Beginning at Sacramento Street and Forest Street and extending to Warthan Street and Tache Way just west of the Warthan Street and Wache Way intersection.
Estimated Project Schedule: Design Start (05/24) – Design Completion (02/25) & Construction Start (02/25) – Construction Completion (08/25) based on the component being funded with RMRA funds
Estimated Project Useful Life: 20 years
PASSED AND ADOPTED by the City Council of the City of Coalinga, State of California this 16th day of May, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_________________________________________
Honorable Mayor/Mayor Pro-Tem
ATTEST:
_______________________________________
City Clerk/Deputy City Clerk
1 4630 West Jennifer Avenue, Suite 101
Fresno, CA 93722-6415
Tel: (559) 447-9075
Fax: (559) 447-9074
Email: [email protected]
www.TriCityEngineering.com
MEMORANDUM
To: Sean Brewer
From: Erika Lansburgh
Subject: Sacramento-Warthan Street Improvements Project Date: April 29, 2024
This project will encompass street improvements beginning at Sacramento Street and Forest Street and extending to Warthan Street and Tache Way just west of the Warthan Street and Wache Way intersection.
The work under this project includes: Demolition of existing asphalt concrete (A.C.), concrete, and saw cutting, excavation, and grading. Improvements include installation of new A.C. pavement, new aggregate base, new concrete valley, utility lid adjustments, thermoplastic striping, thermoplastic pavement markings, and construction surveying.
Based on pavement designs from Warthan Apartments; the pavement design for this project was projected with a Traffic Index at 7, R-Value at 50, and a Lifespan at 20 years.
Once approved, the design phase schedule can start mid-May 2024 through February 2025 and the construction phase can start February 2025 through August 2025; schedule subject to change per approval.
Engineer’s Estimate: $763,600.
00 4630 W. Jennifer Ave. Suite 101
Fresno, CA 93722-6415
(559) 447-9075
Fax: (559) 447-9074
www.TriCityEngineering.com
Created:
Job No. 3029 Revised:
CONSTRUCTION BID ITEMS
Item No. Description Unit Qty. Unit Price Extension
1 MOBILIZATION / GENERAL REQUIREMENTS LS 1 37,600.00 $ $ 37,600.00 2 WORKER SAFETY LS 1 2,700.00 $ $ 2,700.00
3 TRAFFIC CONTROL LS 1 12,500.00 $ $ 12,500.00
4 DUST CONTROL LS 1 3,800.00 $ $ 3,800.00
5 CONSTRUCTION SURVEYING LS 1 12,000.00 $ $ 12,000.00
6 COLD MILL AC PAVEMENT AND DISPOSAL CY 3240 30.00 $ $ 97,200.00 8 CONCRETE REMOVAL AND DISPOSAL CY 10 200.00 $ $ 2,000.00 9 HOT MIX ASPHALT TYPE A (HMA-A) TON 1880 140.00 $ $ 263,200.00 10 AGGREGATE BASE CLASS II TON 2040 40.00 $ $ 81,600.00 11 CONCRETE VALLEY GUTTER SF 200 20.00 $ $ 4,000.00
12 ADJUST EXISTING UTILITY VALVE LIDS EA 5 1,000.00 $ $ 5,000.00 13 ADJUST EXISTING UTILITY MANHOLE LIDS EA 6 1,250.00 $ $ 7,500.00 14 STRIPING AND MARKINGS LS 1 5,000.00 $ $ 5,000.00
CB-1 CONSTRUCTION BID ITEMS SUBTOTAL $ 571,650.00
CONSTRUCTION BID ITEMS
Item No. Description Unit Qty. Unit Price Extension
15 CONSTRUCTION MANAGEMENT SERVICES LS 1 75,500.00 $ $ 75,500.00 16 GEOTECHNICAL SOIL TESTING FEES LS 1 7,500.00 $ $ 7,500.00 CE-1 CONSTRUCTION ENGINEERING SUBTOTAL $ 83,000.00
PRELIMINARY ENGINEERING
Item No. Description Unit Qty. Unit Price Extension
17 ENGINEERING DESIGN SERVICES LS 1 102,900.00 $ $ 102,900.00 PE-1 PRELIMINARY ENGINEERING SUBTOTAL $ 89,400.00
SUMMARY OF CONSTRUCTION COST
Section Description Subtotal
CB-1 CONSTRUCTION BID ITEMS SUBTOTAL 571,650.00 $
CE-1 CONSTRUCTION ENGINEERING SUBTOTAL 83,000.00 $
CONSTRUCTION SUBTOTAL $ 654,650.00
20% CONTINGENCY $ 114,330.00
CONSTRUCTION TOTAL $ 768,980.00
PE-1 PRELIMINARY ENGINEERING SUBTOTAL 89,400.00 $
PROJECT TOTAL $ 763,600.00
April 29, 2024
ENGINEER'S PRELIMINARY OPINION OF PROBABLE COST
Sacramento-Warthan Street Reconstruction
SB1 - Forest Street to Tache Way
May 17, 2023
File:
F:\Docs\3000's\3029 COC SB1 Sacramento-Warthan St Improv (Forest to Polk)\Cost Estimate\Sac St_Scaled_Cost Estimate
Printed:
4/29/2024 9:46 AM
STOP
SCOPE OF WORK LIMITS
SACRAMENTO ST
WARTHAN ST WARTHAN ST
FUTURE WARTHAN PLACE APARTMENTS (PHASE 2)
FUTURE WARTHAN PLACE APARTMENTS
(PHASE 3)
SACRAMENTO & WARTHAN STREET IMPROVEMENTS
FOREST STREET TO TACHE WAY
FOREST ST
POLK ST
LEGEND
SCOPE OF WORK
WARTHAN PLACE APARTMENTS (PHASE 1 COMPLETED) LOUISIANA ST BARKER ST
E HOUSTON ST
ALLEY
ALLEY
E PLEASANT ST
E VALLEY ST
FIFTH ST IVY AVE
TACHE WAY
E PLEASANT ST
E VALLEY ST
PROJECT LIMITS
NEW AC ROADWAY
NEW CONCRETE
WARTHAN PHASE 1 IMPROVEMENTS (COMPLETED)
WARTHAN PHASE 2 IMPROVEMENTS (PLANNED)
RIGHT OF WAY
LIMITS OF WARTHAN APARTMENTS
NEW ROADWAY CROWN
NEW PAVEMENT MARKINGS
STOP
SACRAMENTO ST BARKER ST
FOREST ST LOUISIANA ST
ALLEY
SACRAMENTO ST
WARTHAN ST MATCHLINE - SEE SECTION A MATCHLINE - SEE SECTION A
SACRAMENTO ST
WARTHAN ST EAST
HOUSTON
STREET
TACHE WAY
WARTHAN PLACE
APARTMENTS
ALLEY
LEGEND
PROJECT LIMITS
NEW AC ROADWAY
NEW CONCRETE
WARTHAN PHASE 1 IMPROVEMENTS (COMPLETED)
WARTHAN PHASE 2 IMPROVEMENTS (PLANNED)
RIGHT OF WAY
LIMITS OF WARTHAN APARTMENTS
NEW ROADWAY CROWN
NEW PAVEMENT MARKINGS
SACRAMENTO & WARTHAN STREET IMPROVEMENTS
FOREST STREET TO TACHE WAY
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Adopt Resolution No. 4205 Authorizing Assistant City Manager to Submit Application for CalFire Urban Community and Forestry Grant Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Sean Brewer, Assistant City Manager
I. RECOMMENDATION:
Authorize the Assistant City Manager to apply for the CalFire Urban Community and Forestry Grant and Further Adopt Resolution No. 4205.
II. BACKGROUND:
This program is funded by the USDA Forest Service and administered by CalFire with a total of $30.8 million allocated to California.
The City of Coalinga will be applying for planning grant funding in the Urban Forest Management Activities category.
Funding will be used to contract an arborist to develop a long-term Urban Forest Management Plan. Grant activities will include a citywide tree inventory with health assessment, urban forest mapping, development of a tree-planting palette, and community engagement, education and outreach. It may also include an initial tree planting project.
III. DISCUSSION:
The main grant deliverable, the Urban Forest Management Plan, will be a valuable resource to help guide the City with all future tree planting and maintenance. It will help create a sustainable urban forest, increase the long-term benefits trees provide, improve the public's understanding and appreciation of urban trees, and advance long-term urban forest management and tree care. The Plan will pre-position the City to be more competitive in future tree-planting funding opportunities.
IV. ALTERNATIVES:
Do not apply for the grant. Not recommended.
V. FISCAL IMPACT:
The grant request can be between $150,000 and $1,500,000. The City is still developing the final budget for the grant request.
Matching funds are not required for this grant program. There will be no impact to the General Fund.
ATTACHMENTS:
File Name Description
RESO#4205_COC_Urban_Foresty_Grant_Resolution_051624.pdf Resolution No. 4205 - UF Grant RESOLUTION NO. 4205
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COALINGA FOR FUNDING
FROM THE URBAN AND COMMUNITY FORESTRY GRANT PROGRAM OF THE
CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION
WHEREAS, the Governor of the State of California in cooperation with the State Legislature has appropriated General Funds for the state’s urban forestry programs; and WHEREAS, the State Department of Forestry and Fire Protection has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies and non-profit organizations under the program, and
WHEREAS, said procedures established by the Department of Forestry and Fire Protection require the applicant to certify by resolution the approval of application before submission of said application to the State; and WHEREAS, the applicant will enter an agreement with the State of California to carry out an urban forestry project; NOW, THEREFORE, BE IT RESOLVED that the Coalinga City Council:
1. Approved the filing of an application for the Urban and Community Forestry grant program funds; and
2. Certifies that said applicant has or will have sufficient funds to operate and maintain the project; and,
3. Certifies that funds under the jurisdiction of _________________________ are available to begin the project. (Title of Governing Body)
4. Certifies that said applicant will expend grant funds prior to March 31, 2028.
5. Appoints the ___________________________________, or a designee, as agent of the ____________________ to conduct negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the afore mentioned project.
Approved and adopted the 16th day of May, 2024.
I, the undersigned, hereby certify that the foregoing Resolution No. 4205, was duly adopted by the following roll call vote of _____________________________________.
AYES:
NOES:
ABSTAIN:
ABSENT: APPROVED:
______________________________________
James Horn, Mayor
ATTEST:
________________________________________
Shannon Jensen, City Clerk
(Position Title) (Title of Governing Body)
(City Council/Board of Supervisors/Board of Directors)
the Coalinga City Council
City Manager / Assistant City Manager Coalinga City Council the City Council of the City of Coalinga
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Authorize Assistant City Manager to Execute a Task Order with MKN and Associates to Develop City of Coalinga’s Water Treatment Plant (WTP) Operations Plan for New Recently Installed Facilities
Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Sean Brewer, Assistant City Manager
I. RECOMMENDATION:
Authorize the Assistant City Manager to Execute a Task Order with MKN and Associates to Develop the City of Coalinga’s Water Treatment Plant (WTP) Operations Plan for New Recently Installed Facilities.
II. BACKGROUND:
The City owns and operates the Coalinga Water Treatment Plant (WTP), a surface water treatment facility permitted to treat up to 12 MGD. While the WTP staff have implemented influent oxidation and pH adjustment using temporary chemical systems for a number of years, the most recent facility upgrades included installations of permanent sodium permanganate and carbon dioxide chemical systems, which are intended to replace the temporary chemical storage and injection systems.
The State Water Resources Control Board Division of Drinking Water (DDW) has requested the submission of an Operations Plan for the newly-installed chemical systems and the entire WTP that will satisfy the requirements listed in Title 22 § 64661The City has previously submitted an Operations Plan to the DDW in 2009, however facility and treatment process upgrades since 2009 have not been captured. This document will be used to support development of the updated Operations Plan.
III. DISCUSSION:
MKN has prepared a task order to staff to prepare an operations plan to satisfy requirements listed in Title 22 § 64661. Standard Operating Procedures (SOPs) will also be developed to document plant startup, plant shutdown, and filter backwash procedures in addition to an O&M procedures for newly installed facilities to align with updated plant operations. An outline of the content to be developed is included in Exhibit C of the task order attached.
Per the Department of Drinking Water’s (DDW) request, content from the Operations Plan related to the new sodium permanganate and carbon dioxide systems will be submitted to the DDW and City staff for review and comment prior to the submission of the entire facility’s Operations Plan. MKN willaddress comments provided and submit finalized sections pertaining to operation of the permanganate and carbon dioxide systems to the DDW and City.
IV. ALTERNATIVES:
Do not authorize the Assistant City Manager to execute said task order - staff does not recommend as this is needed and it requires timely completion and the need of specialized expertise in this area.
V. FISCAL IMPACT:
The cost of the task order for MKN to complete said standard operations plan shall not exceed $58,262.00.
This willcome from 2021 Bond Proceeds as part of the TTHM project programming.
ATTACHMENTS:
File Name Description
Prop_20240423_Coalinga_WTP_Ops_Plan.pdf MKN Plant Operations Plan Task Order 8405 North Fresno St., Ste. 120
Fresno, CA 93720
559-500-4750 PHONE
April 23, 2024
Anthony Uribe
City of Coalinga
(Submitted Electronically)
Re: Proposal for City of Coalinga WTP Operations Plan
Dear Anthony,
MKN & Associates, Inc. (MKN) is pleased to submit a scope and fee proposal for development of the City of Coalinga’s (City) Water Treatment Plant (WTP) Operations Plan.
Project Background
The City owns and operates the Coalinga Water Treatment Plant (WTP), a surface water treatment facility permitted to treat up to 12 MGD. While the WTP staff have implemented influent oxidation and pH adjustment using temporary chemical systems for a number of years, the most recent facility upgrades included installations of permanent sodium permanganate and carbon dioxide chemical systems, which are intended to replace the temporary chemical storage and injection systems.
The State Water Resources Control Board Division of Drinking Water (DDW) has requested the submission of an Operations Plan for the newly-installed chemical systems and the entire WTP that will satisfy the requirements listed in Title 22 § 64661The City has previously submitted an Operations Plan to the DDW in 2009, however facility and treatment process upgrades since 2009 have not been captured. This document will be used to support development of the updated Operations Plan.
Scope of Work
Task Group 1 – Project Management
Task 1.1 Project Management and QA/QC
Overall project management, which includes supervision of in-house staff, planning and monitoring of contract budget and schedule, and coordination with the City and MKN’s project team will be conducted by MKN’s Project Manager.
MKN will provide senior technical review and implement our quality assurance and quality control (QA/QC) measures throughout the project.
City of Coalinga | 2
Task 1.2 Meetings
MKN has included the following meetings as part of this scope of services:
• Project Kickoff Meeting – Video conference meeting to review the project scope, schedule, and budget.
• Site Visit – In-person visit for up to two (2) working days to tour facilities and interview operators.
• Progress Review Meetings (2) – Video conference meetings to review project progress.
Deliverables:
• Meeting Agenda and Minutes (Project Kickoff Meeting and Progress Review Meetings) • Site Visit Meeting Agenda (to be submitted prior to Site Visit) Task Group 2 – Data Review and Plan Development
Task 2.1 Data Request
MKN will review previously obtained data, permits, operations and maintenance (O&M) manuals, recent design documents, and previous meeting notes. MKN will prepare and submit a data request for information and/or documentation desired from the City prior to the Kickoff Meeting.
At a minimum, this may include additional equipment O&M manuals, maintenance program documentation, monitoring reports, etc. A secondary data request may be submitted after the Kickoff Meeting if deemed necessary.
Deliverables:
• Data Request
Assumptions:
• MKN will not be responsible for digitizing any existing physical (paper) documentation (operations manuals, plans, reports, etc.) that are required for the Operations Plan.
Task 2.2 Plan Development
MKN will develop the Plan to satisfy requirements listed in Title 22 § 64661 at a minimum. Per conversations with City staff, Standard Operating Procedures (SOPs) will also be developed to document plant startup, plant shutdown, and filter backwash procedures. An outline of the content to be developed is included in Exhibit C.
MKN will conduct up to two project progress review meetings to review content development and solicit input from the City as needed.
Per the DDW’s request, content from the Operations Plan related to the new sodium permanganate and carbon dioxide systems will be submitted to the DDW and City staff for review and comment prior to the submission of the entire facility’s Operations Plan. MKN will address comments provided and submit finalized sections pertaining to operation of the permanganate and carbon dioxide systems to the DDW and City.
City of Coalinga | 3
A draft Operations Plan will be submitted to City for review and comment in both .pdf and .doc formats. After incorporating comments on the draft Operations Plan, an administrative draft of the Plan will be submitted to DDW for review. MKN will address any received comments accordingly and submit a finalized plan to the DDW and City.
Deliverables:
• Administrative Draft Operations Plan (.doc and .pdf formats) • Draft Operations Plan (.doc and .pdf formats)
• Final Operations Plan (.doc and .pdf formats)
Assumptions:
• MKN will utilize record drawings from previous projects and will not be responsible for generating additional graphics or record drawings to supplement the Operations Plan directives.
Task 2.3 Regulatory Support
MKN will attend meetings with the DDW to review their comments on the Draft Sodium Permanganate and Carbon Dioxide System Operations Plan and full Draft Operations Plan. MKN will update each version of the Operations Plans accordingly and support City staff in permittingrelated communications with the DDW.
City of Coalinga | 4
Fee Estimate
MKN proposes to complete this work on a time and materials basis with a budget not to exceed $58,262, based on the 2024 MKN rate schedule, included as Exhibit C. The estimated level of effort is provided as Exhibit B.
Schedule
The anticipated project schedule is as follows:
Sodium Permanganate and Carbon Dioxide System Operations Plan:
• Draft to be submitted 10 weeks from notice-to-proceed (NTP) • Final to be submitted 4 weeks after receiving comments from DDW Full Operations Plan
• Draft to be submitted 14 weeks from NTP
• Final to be submitted 4 weeks after receiving comments from DDW We would like to express our thanks to the City for the opportunity to work on this important project. Should you have any questions or wish to discuss any of the information presented herein, please do not hesitate to contact the MKN project staff at your convenience.
Sincerely,
Mihika Ram, PE Henry Liang, PE
[email protected] [email protected]
Project Manager Principal-in-Charge
Appendices:
Appendix A – Draft Operations Plan Table of Contents
Appendix B – Project Fee
Appendix C – 2024 MKN Fee Schedule
Coalinga – Water Treatment Plant Operations Plan Page | i
TABLE OF CONTENTS
1.0 OVERVIEW ............................................................................................................................. 1-1
1.1 Facility Overview ................................................................................................................. 1-1
1.2 Purpose ............................................................................................................................... 1-1
1.3 Treatment Objectives .......................................................................................................... 1-1
2.0 TREATMENT PROCESS OVERVIEW .................................................................................... 2-1
2.1 RAW WATER SUPPLY AND INFLUENT PUMPING STATION ........................................... 2-1
2.1.1. Process Description ..................................................................................................... 2-1
2.1.2. Raw Water Source and Characteristics ....................................................................... 2-1
2.1.3. Recycled Water Contributions ..................................................................................... 2-1
2.1.4. Equipment Maintenance Program ................................................................................ 2-1
2.1.5. Process Control Alarms ............................................................................................... 2-1
2.2 RAPID MIX, FLOCCULATION, AND SEDIMENTATION ..................................................... 2-1
2.2.1. Process Description ..................................................................................................... 2-1
2.2.2. Treatment Objectives ................................................................................................... 2-1
2.2.3. Equipment Maintenance Program ................................................................................ 2-1
2.2.4. Process Control Alarms ............................................................................................... 2-1
2.3 FILTRATION AND WASHWATER STANDPIPE .................................................................. 2-1
2.3.1. Process Description ..................................................................................................... 2-1
2.3.2. Treatment Objectives ................................................................................................... 2-1
2.3.3. Equipment Maintenance Program ................................................................................ 2-1
2.3.4. Filtration Media Inspection Protocol ............................................................................. 2-1
2.3.5. Process Control Alarms ............................................................................................... 2-1
2.4 WASHWATER RECLAMATION AND SLUDGE DRYING BEDS ......................................... 2-2
2.4.1. Process Description ..................................................................................................... 2-2
2.4.2. Treatment Objectives ................................................................................................... 2-2
2.4.3. Equipment Maintenance Program ................................................................................ 2-2
2.4.4. Process Control Alarms ............................................................................................... 2-2
2.5 FINISHED WATER STORAGE, SURGE PROTECTION, AND HIGH SERVICE PUMPING 2-2
2.5.1. Process Description ..................................................................................................... 2-2
2.5.2. Treatment Objectives ................................................................................................... 2-2
2.5.3. Equipment Maintenance Program ................................................................................ 2-2
2.5.4. Process Control Alarms ............................................................................................... 2-2
3.0 CHEMICAL FEED SYSTEMS ................................................................................................. 3-3
3.1 General ............................................................................................................................... 3-3 Coalinga – Water Treatment Plant Operations Plan Page | ii
3.2 Process XX: Aluminum Sulfate (Liquid Alum) ...................................................................... 3-3
3.3 Process XX: Sodium Hydroxide ........................................................................................... 3-3
3.4 Process XX: Carbon Dioxide ............................................................................................... 3-3
3.5 Process XX: Sodium Permanganate ................................................................................... 3-3
3.6 Process XX: Zinc Orthophosphate....................................................................................... 3-3
3.7 Process XX: Polymer........................................................................................................... 3-3
3.8 Chemical Feed System Maintenance .................................................................................. 3-3
3.9 Chemical Fill Station ............................................................................................................ 3-3
4.0 WATER QUALITY CONTROL STRATEGIES ......................................................................... 4-3
4.1 Primary Disinfection Control ................................................................................................ 4-3
4.2 Disinfection Byproduct Formation Control............................................................................ 4-3
4.3 Nitrification Control .............................................................................................................. 4-3
4.4 Corrosion Control ................................................................................................................ 4-3
5.0 STANDARD OPERATING PROCEDURES ............................................................................. 5-3
5.1 Facility Startup..................................................................................................................... 5-3
5.2 Facility Shutdown ................................................................................................................ 5-3
5.3 Filter Backwash ................................................................................................................... 5-3
6.0 MONITORING AND REPORTING .......................................................................................... 6-1
6.1 Water Quality Monitoring ..................................................................................................... 6-1
6.1.1. Raw Water Quality Monitoring ..................................................................................... 6-1
6.1.2. Process Water Quality Monitoring ................................................................................ 6-1
6.1.3. Finished Water Quality Monitoring ............................................................................... 6-1
6.1.4. Laboratory Analysis ..................................................................................................... 6-1
6.2 Reporting Requirements ...................................................................................................... 6-1
6.2.1. Records Retention ....................................................................................................... 6-1
6.2.2. Monthly and Annual Reporting ..................................................................................... 6-1
6.3 Reliability Features .............................................................................................................. 6-1
7.0 EMERGENCY RESPONSE PROTOCOLS ............................................................................. 7-1
7.1 Contact Information ............................................................................................................. 7-1
7.2 Emergency Notification Plan ................................................................................................ 7-1
7.3 Emergency Disinfection Procedures .................................................................................... 7-1
8.0 OPERATIONS STAFF AND CONTACT INFORMATION ........................................................ 8-1
8.1 Operations Staff Certification Requirements ........................................................................ 8-1
8.2 Operations Staff Responsibilities ......................................................................................... 8-1
8.3 Public Contacts ................................................................................................................... 8-1 Coalinga – Water Treatment Plant Operations Plan Page | iii
8.4 External Contacts ................................................................................................................ 8-1 APPENDIX A. PROCESS INSTRUMENTATION DIAGRAMS ............................................................ 8-2 APPENDIX B. EQUIPMENT O&M MANUALS .................................................................................... 8-3
LIST OF TABLES
No table of figures entries found.
LIST OF FIGURES
No table of figures entries found.
Coalinga – Water Treatment Plant Operations Plan Page | 1-1
1.0 OVERVIEW
1.1 Facility Overview
1.2 Purpose
1.3 Treatment Objectives
Coalinga – Water Treatment Plant Operations Plan Page | 2-1
2.0 TREATMENT PROCESS OVERVIEW
2.1 RAW WATER SUPPLY AND INFLUENT PUMPING STATION
2.1.1. Process Description
2.1.2. Raw Water Source and Characteristics
2.1.3. Recycled Water Contributions
2.1.4. Equipment Maintenance Program
2.1.5. Process Control Alarms
2.2 RAPID MIX, FLOCCULATION, AND SEDIMENTATION
2.2.1. Process Description
2.2.2. Treatment Objectives
2.2.3. Equipment Maintenance Program
2.2.4. Process Control Alarms
2.3 FILTRATION AND WASHWATER STANDPIPE
2.3.1. Process Description
2.3.2. Treatment Objectives
2.3.3. Equipment Maintenance Program
2.3.4. Filtration Media Inspection Protocol
2.3.5. Process Control Alarms
Coalinga – Water Treatment Plant Operations Plan Page | 2-2
2.4 WASHWATER RECLAMATION AND SLUDGE DRYING BEDS
2.4.1. Process Description
2.4.2. Treatment Objectives
2.4.3. Equipment Maintenance Program
2.4.4. Process Control Alarms
2.5 FINISHED WATER STORAGE, SURGE PROTECTION, AND HIGH SERVICE
PUMPING
2.5.1. Process Description
2.5.2. Treatment Objectives
2.5.3. Equipment Maintenance Program
2.5.4. Process Control Alarms
Coalinga – Water Treatment Plant Operations Plan Page | 5-3
3.0 CHEMICAL FEED SYSTEMS
3.1 General
3.2 Process XX: Aluminum Sulfate (Liquid Alum)
3.3 Process XX: Sodium Hydroxide
3.4 Process XX: Carbon Dioxide
3.5 Process XX: Sodium Permanganate
3.6 Process XX: Zinc Orthophosphate
3.7 Process XX: Polymer
3.8 Chemical Feed System Maintenance
3.9 Chemical Fill Station
4.0 WATER QUALITY CONTROL STRATEGIES
4.1 Primary Disinfection Control
4.2 Disinfection Byproduct Formation Control
4.3 Nitrification Control
4.4 Corrosion Control
5.0 STANDARD OPERATING PROCEDURES
5.1 Facility Startup
5.2 Facility Shutdown
5.3 Filter Backwash
Coalinga – Water Treatment Plant Operations Plan Page | 8-1
6.0 MONITORING AND REPORTING
6.1 Water Quality Monitoring
6.1.1. Raw Water Quality Monitoring
6.1.2. Process Water Quality Monitoring
6.1.3. Finished Water Quality Monitoring
6.1.4. Laboratory Analysis
6.2 Reporting Requirements
6.2.1. Records Retention
6.2.2. Monthly and Annual Reporting
6.3 Reliability Features
7.0 EMERGENCY RESPONSE PROTOCOLS
7.1 Contact Information
7.2 Emergency Notification Plan
7.3 Emergency Disinfection Procedures
8.0 OPERATIONS STAFF AND CONTACT INFORMATION
8.1 Operations Staff Certification Requirements
8.2 Operations Staff Responsibilities
8.3 Public Contacts
8.4 External Contacts
Coalinga – Water Treatment Plant Operations Plan Page | 8-2 APPENDIX A. PROCESS INSTRUMENTATION DIAGRAMS
Coalinga – Water Treatment Plant Operations Plan Page | 8-3 APPENDIX B. EQUIPMENT O&M MANUALS
City of Coalinga
WTP Operations Plan
Project Director
Senior Projet Engineer I
Project Engineer I/Senior Scientist
Assistant Engineer II
Assistant Engineer I
Total Hours (MKN)
Labor (MKN)
ODCs (MKN)
Total Fee
Hourly Rates 275 210 180 155 135
Task Group 1: Project Management and QA/QC
Task 1.1 PM and QA/QC 2 24 8 34 $7,030 211 $ $ 7,241
Task 1.2 Meetings 2 6 24 22 22 76 $12,510 1,575 $ $ 14,085 Subtotal 4 30 32 22 22 110 19,540 $ 1,786 $ 21,326 $
Task Group 2: Data Review and Plan Development
Task 2.1 Data Request 4 12 16 $2,340 70 $ $ 2,410
Task 2.2 Operations Plan Development 34 80 80 194 $29,320 880 $ $ 30,200 Task 2.3 Regulatory Support 8 8 8 24 $4,200 126 $ $ 4,326 Subtotal 0 8 46 80 100 234 35,860 $ 1,076 $ 36,936 $
TOTAL BUDGET 4 38 78 102 122 344 $55,400 2,862 $ 58,262 $
The foregoing Billing Rate Schedule is effective through December 31, 2024 and will be adjusted each year after at a rate of 2 to 5%.
DIRECT PROJECT EXPENSES
OutsideReproduction Cost + 10%
Subcontracted or Subconsultant Services Cost + 10%
Travel & Subsistence (other than mileage) Cost
Auto Mileage Current IRS Rate
CATEGORY POSITION HOURLY RATE
Communications
and
Administrative
Administrative Assistant $110
Strategic Communications Coordinator $115
Strategic Communications Specialist $140
Designers and
Technicians
CAD Technician I $130
CAD Design Technician II $150
Senior Designer $170
Planning
GIS Specialist $165
Planner I $185
Planner II $195
Senior Planner $205
Engineers
Engineering Technician $100
Assistant Engineer I $135
Assistant Engineer II $155
Project Engineer I $180
Project Engineer II $195
Senior Engineer I $210
Senior Engineer II $220
Senior Engineer III $235
Principal Engineer $245
Project
Management
Project Manager $220
Senior Project Manager $254
Project Director $275
Senior Project Director $295
Construction
Management
Services
Scheduler $170
Construction Inspector $190
Assistant Resident Engineer $190
Resident Engineer $202
Construction Manager $220
Principal Construction Manager $259
2024 FEE SCHEDULE
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Authorize City Manager to Approve Engagement Letter received from Price Paige & Company for Consulting Services related to Preparation of FiscalYear 2023- 2024 Audit
Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Mai Vang, Financial Services Director
I. RECOMMENDATION:
Staff recommends approval of the engagement letter received from Price Paige & Company to assist with the preparation of the FiscalYear 2023-2024 Audit.
II. BACKGROUND:
The City has previously used Price Paige & Company as the externalauditor. Since 2018, Price Paige & Company has been providing consulting services to assist with audit prep.
III. DISCUSSION:
Assistance is needed in the Finance Department to prepare and complete the audits in an expeditious manner to minimize the risk of losing grant funding.
Professionalconsulting services include the following:
1) We willassist the City in the year-end close of its financial records for the year ending June 30, 2024 by analyzing and preparing reconciliations of the following balance sheet and income statement balances in preparation for the City’s external financial statement audit:
a. CapitalAssets
b. Long-term Debt and related Cash with FiscalAgents
c. Leases (GASB 87)
d. Subscription-Based Information Technology Arrangements (GASB 96) e. Payroll Liabilities Reconciliation
f. Grant Reconciliation and Schedule of Expenditures of FederalAwards 2) For the items listed above, we will provide all journal entries necessary to ensure that the City’s trial balance reconciles to the supporting audit schedules.
3) We will serve as a liaison with the City’s external auditors for any inquiries directly related to the balance sheet and income statement items listed above.
4) We will provide the City with additional consultation, including training of accounting personnel, as agreed upon with City management. The scope, timing, and extent of the additional consultation will be discussed prior to the commencement of any work.
IV. ALTERNATIVES:
None
V. FISCAL IMPACT:
Totalamount of the proposal is a not to exceed amount of $40,950, where the consulting services listed under item 1 - 3 is $24,990 and additionalconsulting for item 4 is $15,960.
Consulting Services, as listed in items 1-3 $ 24,990
Additional Consulting, as listed in item 4 (hourly, not to exceed) $ 15,960 Total $ 40,950
101-406-88030 13.3% 5,446
107-422-88030 5.0% 2,048
501-406-88030 29.0% 11,876
502-406-88030 25.0% 10,238
503-406-88030 19.0% 7,781
504-406-88030 1.0% 410
106-413-88030 3.7% 1,515
820-610-88030 4.0% 1,636
$40,950
ATTACHMENTS:
File Name Description
20240426_-_COALINGA_Advisory_Services_Engagement_Letter_2024.pdf Engagement Letter April 26, 2024
Marissa Trejo, City Manager
City of Coalinga
155 W. Durian Avenue
Coalinga, California 93210
Dear Marissa:
This letter confirms the engagement of Price Paige & Company by the City of Coalinga, California (the City) for professional advisory services as described below:
1) We will assist the City in the year-end close of its financial records for the year ending June 30, 2024 by analyzing and preparing reconciliations of the following balance sheet and income statement balances in preparation for the City’s external financial statement audit:
a. Capital Assets
b. Long-term Debt and related Cash with Fiscal Agents
c. Leases (GASB 87)
d. Subscription-Based Information Technology Arrangements (GASB 96) e. Payroll Liabilities Reconciliation
f. Grant Reconciliation and Schedule of Expenditures of Federal Awards 2) For the items listed above, we will provide all journal entries necessary to ensure that the City’s trial balance reconciles to the supporting audit schedules.
3) We will serve as a liaison with the City’s external auditors for any inquiries directly related to the balance sheet and income statement items listed above.
4) We will provide the City with additional consultation, including training of accounting personnel, as agreed upon with City management. The scope, timing, and extent of the additional consultation will be discussed prior to the commencement of any work.
All workpapers or other documents used by us during this engagement will be maintained in segregated files, and such originals and all copies will be returned to you upon the completion of our engagement.
You agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.
April 26, 2024
2024
COALINGA
Electronic Data Communication and Storage and Use of Third-Party Service Provider In the interest of facilitating our services to the City, we may communicate by facsimile transmission, send data over the Internet, store electronic data via computer software applications hosted remotely on the Internet, or allow access to data through third-party vendors’ secured portals or clouds. Electronic data that is confidential to the City may be transmitted or stored using these methods. We may use third-party service providers to store or transmit this data, such as providers of tax return preparation and document management software. In using these data communication and storage methods, our firm employs measures designed to maintain data security. We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We also require all of our third-party vendors to do the same.
You recognize and accept that we have no control over the unauthorized interception or breach of any communications or data once it has been sent or has been subject to unauthorized access, notwithstanding all reasonable security measures employed by us or our third-party vendors, and consent to our use of these electronic devices and applications and submission of confidential client information to third-party service providers during this engagement.
Engagement Administration, Fees and Other
We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. We will plan the engagement based on the assumption that your personnel will cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving supporting documents, and preparing confirmations. If, for whatever reason, your personnel are unavailable to provide the necessary assistance in a timely manner, it may substantially increase the work we have to do to complete the engagement within the established deadlines, resulting in an increase in fees over our original fee estimate.
It is our policy to keep records related to this engagement for a minimum of seven years after the report release date.
ShareFile is used solely as a method of exchanging information and is not intended to store the City’s information. Upon completion of the engagement, data and other content will be removed from ShareFile in accordance with Price Paige & Company’s policy.
Our fees for the above services for the year ending June 30, 2024 will be as follows:
Advisory Services, as listed in items 1-3 $ 24,990
Additional Advisory Services, as listed in item 4 (hourly, not to exceed) 15,960
Total $ 40,950
Our fees are based on expected hours required to perform the service at our standard hourly rates. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your advisory engagement. Our billing rates are reviewed annually and, where appropriate, adjusted for any increases due to inflation and other factors. We will issue a monthly billing statement for the work completed in that month. Payments for services are due when rendered and interim billings may be submitted as work progresses and expenses are incurred. Our fee estimate is based on anticipated cooperation from your personnel and assumption that unexpected circumstances will not be encountered. If significant time is necessary, we will discuss it with you before we incur additional costs. The fees for these services will be billed at the hourly billing rate for the individual involved, plus out-of-pocket expenses.
If any dispute pertaining to our work product arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to litigation. The costs of any mediation proceeding shall be shared equally by all parties.
All work will be suspended if your account becomes 90 days past due. No work will be resumed until your account is fully paid. You acknowledge and agree that in the event we stop work or withdraw from this engagement as a result of your failure to pay on a timely basis for services rendered as required by this April 26, 2024
2024
COALINGA
engagement letter, we shall not be liable for any damages that occur as a result of our ceasing to render services. Client and accountant both agree that any dispute over fees charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final.
IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE OVER
FEES CHARGED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE
DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.
If information becomes known that would make our continued involvement in this engagement inappropriate, or parties involved change, we reserve the right to withdraw from this engagement. In addition, we will refuse to perform any requested act that we deem a violation of law, public policy, or our professional ethical standards, and may, as a result, withdraw from the engagement without penalty.
In no event will our firm be liable for incidental or consequential damages resulting from our performance on this engagement, even if we have been advised of the possibility of such damages.
Non-Solicit Clause
We value every one of our clients as well as every one of our employees. We have spent a great deal of time and resources to locate, train, and retain our employees. We respectfully request that you do not solicit our employees to work for you. If you do hire one of our employees within 2 years of when they last worked for Price Paige & Company, we will be due a finder’s fee equal to 50% of the annual salary they were earning as of their last day of employment. Payment will be due within 10 days of your receipt of our invoice.
If these terms are in accordance with your understanding and meet with your approval, please return a signed copy via email or regular mail at your earliest convenience. This agreement will become effective when you return the signed copy to us.
If the need for additional services arises, our agreement with you will need to be revised. It is customary for us to describe these revisions in an addendum to this letter.
Sincerely,
Joshua Giosa, CPA
Price Paige & Company
- - - - - - -
RESPONSE:
This letter correctly sets forth the understanding of the City of Coalinga, California.
Management Signature Title Date
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Code Enforcement Monthly Report for March 2024 Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo
Prepared by: Yaneth Ibarra, Code Enforcement Officer
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
March_2024.pdf Code Enforcement Report March 2024
March 2024 Notices Pending Cited Completed
Boken Fence 1 1
In-Op Vehicles 3 3
Junk Trash Debris 17 4 9 7
Over Grown Weeds 80 27 53
Semi-Trucks Residential 2 2
Shopping Carts 7 7
Storage Containers 1 1
Unpermitted Business- Food-FB 1 1
Vacant Reg-Property Maintenance 1 1
Vehicles on Lawn 3 3
Total 116 31 12 76
72 Hour Parking Warning 11 3 11
Vehicle Tows 2
Water Conservation
Code Enforcement Activity
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: Coalinga Police Department Monthly Report for April 2024 Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Jose Garza, Chief of Police
I. RECOMMENDATION:
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
CPD_April_2024_Monthly_Report.docx CPDApril 2024 Report April 2024
Monthly Report
The Coalinga Police Department, in partnership with the community, continues to do an outstanding job in addressing crime in the city. According to the Month to Month and Year to Year Table of Part 1 Crimes (See Table below), crimes are down by 30% Year to Date compared to last year 2023. For the month of April 2024, Part 1 crimes were down 33% compared to April 2023. This decrease occurred in most categories, especially larceny and auto theft. A similar pattern was observed for the Year-to-Date data. We need to keep the momentum going and work together to hold these criminals accountable for their actions.
Driving Under the Influence (DUI) arrests Update
The City of Coalinga had 14 DUI arrests this year, two in the month of April. Of the 14 DUI arrests, two involved non-injury traffic accidents.
Notable Investigation and Arrests Homicide investigation On April 16, 2024, the City of Coalinga had its first homicide in 4 years. The Coalinga Police Department received multiple calls reporting shots fired in the 200 block of East Houston. Officers arrived and located the victim with a gunshot wound. The victim was transported to the hospital where he died of his injury. The Fresno County Sherrif’s Department Homicide Unit responded to the scene and is handling the investigation.
The Homicide appeared to be gang involved.
Felon Arrested for Firearms Charges
On April 26, 2024, around 7:35 pm, officers responded to a vehicle nuisance at 302 W.
Pleasant Street, the Coalinga Crossings Apartment complex. During this time officers observed a black Nissan Sentra pull into the parking lot and park in one of the nearby apartment spaces. Officers noticed that the driver, and sole occupant, who exited the Nissan was Coalinga resident Dezstynd Towner. Towner, an active Westside Coalinga Norteno, walked into a nearby apartment. Towner was recently released from parole for firearms related charges and is a convicted felon prohibited from possessing weapons and ammunition. When officers looked inside the Nissan, they saw a firearm laying on the floorboard in plain view.
Officers were able to get Towner to exit the apartment and he was placed under arrest without incident. Officers retrieved the black/gray handgun which had a green mounted laser on the front of it. Towner was later transported to the Fresno County Jail and booked on his various charges including felon in possession of a loaded firearm.
Vehicle Stop Leads to Arrest and Recovery of Loaded Firearm On Monday, April 22, 2024, at about 11:14 am, officers conducted a vehicle stop on a 2021 gray Kia near Warthan and E. Pleasant for an equipment violation. The driver of the vehicle was identified as Coalinga resident Raymond Bernal Junior. Bernal was found to have been wanted on two misdemeanor, no-bail, Fresno County bench warrants for multiple DUI’s. Bernal was arrested for his warrants and upon search of his vehicle incident to arrest and as a part of a vehicle storage inventory, a fully loaded .45 caliber semi-automatic firearm was found inside of a black bag that was on the front passenger seat. Bernal was also found to be in possession of a concealed dirk or dagger on his person during the time of his arrest.
Bernal was arrested for his outstanding warrants and was additionally charged with several firearm related offenses. Bernal was later transported and booked into the Fresno County Jail without incident.
Suspects Arrested After Theft and Pursuit
On April 7, 2024, around 11:30 am, officers were dispatched to Rite-Aid, 145 W. Polk Street, regarding a theft that had just occurred. Officers arrived on scene and began to gather information regarding descriptions of the suspects and vehicle. Officers were informed that two black male adults entered the store wearing ski-masks, walked behind the front counter and began stealing various alcohol and nicotine products without saying anything. The total estimated value of stolen property was over $2,000.00. The two suspects then fled the store and got into a blue Toyota Solara, then fled the scene eastbound on Polk Street.
An officer decided to check the area of Jayne Avenue and I-5 in an attempt to locate the suspects and or the vehicle. The officer located the blue Toyota Solara parked at the gas pumps at the Valero Gas Station located at 20033 Sommerville Lane. The officer saw two suspects who matched the description of the suspects from the theft at Rite-Aid walking from the vehicle and approaching the front door of the Valero. Both suspects were wearing ski-masks which led the officer to suspect that they were about to commit a robbery or a theft at the Valero.
The officer activated his emergency lights, got out of his patrol vehicle and confronted both suspects at gunpoint. The officer ordered the suspects to put their hands up and surrender, however both suspects ignored the officer's commands and retreated back to the blue Toyota Solara. The suspects pulled away from the fuel pump of the Valero while the pump was still being used by them, damaging the fuel pump, and got onto I-5, heading southbound.
The officer pursued the suspects for approximately eight miles until the suspect vehicle lost control and rolled over several times, coming to rest in the northbound median of I5. The two suspects, including an additional black female adult, were thrown from the vehicle upon crashing. All three were taken into custody when assisting officers arrived.
Stolen Property from the Rite-Aid was recovered from the vehicle and the scene.
Officers were later informed that the suspects and the vehicle were involved in another theft at a Rite-Aid in the City of Lemoore, where approximately $1,000.00 worth of goods were stolen. The Lemoore theft occurred just prior to the Coalinga theft. All three suspects were from the Bay Area.
The driver, identified as Armani Tyree Smith, is out of San Francisco. Armani has an extensive criminal history with firearm related charges, robbery, carjacking, burglary and theft. The other male suspect, identified as Harold Joseph Armstrong III, is from San Pablo. Harlod has an extensive criminal history which includes charges of robbery, theft, stolen vehicles, carjacking, firearms possession, assault with a firearm and discharge of a firearm. The female, identified as Jordan Heaven Harris, is out of Oakland. Jordan has a criminal history which includes charges of robbery, battery, and theft.
Harold suffered major injuries to his hand during the collision and was transported to a local hospital for treatment. The other two suspects were medically cleared and were later transported and booked into the Fresno County Jail. All three suspects are being charged with multiple felony theft charges including, attempted robbery and felony evading.
Respectfully,
Jose V Garza
Chief of Police
STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE
AUTHORITY
Subject: FiscalYear 2024-2025 Proposed Budget Discussion and Direction Meeting Date: Thursday, May 16, 2024
From: Marissa Trejo, City Manager
Prepared by: Mai Vang, Financial Services Director
I. RECOMMENDATION:
The detailed budget information is being prepared and will be provided at the meeting.
II. BACKGROUND:
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
ATTACHMENTS:
File Name Description
NoAttachments Available