i. Tax Allocation Bonds
The North Texas Redevelopment Project Area Tax Allocation Bonds, Series 2011, were issued in February 2011 by the former Redevelopment Agency in the amount of $6,725,000 to purchase additional land for development. The bonds bear interest at rates ranging from 3.52% to 8.25%. The debt service requirements on the tax allocation bonds are as follows:
Fiscal Year
Ending Principal Interest Totals
2023 105,000$ 563,650$ 668,650$ 2024 110,000 553,975 663,975 2025 120,000 543,625 663,625 2026 130,000 532,375 662,375 2027 145,000 520,000 665,000 2028‐2032 950,000 2,357,424 3,307,424 2033‐2037 1,490,000 1,788,375 3,278,375 2038‐2042 2,350,000 890,625 3,240,625 2043 615,000 29,213 644,213 Totals 6,015,000$ 7,779,262$ 13,794,262$ Tax Allocation Bonds
ii. Tax Allocation Refunding Bonds
On April 3, 2014, the Successor Agency issued $29,075,000 in bonds to refinance prior obligations and bonds of the Successor Agency and related obligations of the Fairfield Public Financing Authority (which were for Redevelopment purposes). As of June 30, 2022, the outstanding balance of the refunding issue is $10,210,000. This debt issue has interest rates ranging from 3.00% ‐ 5.00% and has a final maturity date in 2028. This bond issue neither raised new money nor increased the final maturity date. The revenue bonds are secured by a pledge of, and lien on, monies Packet Page 236 of 812Attachment 1 Page 114 of 188
City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
94 deposited from time to time in the Redevelopment Property Tax Trust Fund. This bond refinancing was approved by both the California Department of Finance as well as the Successor Agency’s Oversight Board.
This bond issue of $29,075,000 included the refinancing of the previously outstanding 2003, Series B bonds which were previously issued (originally in 1996 and subsequently refinanced in 2003) specifically to assist Casa Nova Mobile Home Park in the purchase of their mobile home park. The amount outstanding that pertains to Casa Nova Mobile Home Park at June 30, 2022 is $1,510,000. This portion of the bonds is being serviced and paid by Casa Nova Mobile Home Park and the Successor Agency has recorded both a receivable and a liability for this same amount. As Casa Nova makes a principal payment, the bonds payable and loans receivable are reduced for an equal amount. As Casa Nova Mobile Home Park makes an interest payment, miscellaneous revenue is recorded along with an interest expense.
The remaining debt service requirements on these refunding tax allocation bonds are as follows:
Fiscal Year
Ending Principal Interest Totals
2023 2,885,000$ 279,875$ 3,164,875$ 2024 3,025,000 132,125 3,157,125 2025 205,000 51,375 256,375 2026 215,000 40,875 255,875 2027 225,000 29,875 254,875 2028‐2029 485,000 24,625 509,625 Totals 7,040,000$ 558,750$ 7,598,750$ Tax Allocation Refunding Bonds
iii. Long Term Notes Payable
The former Redevelopment Agency has two long‐term notes in the Highway 12 Project Area totaling $2,141,499 (which includes accrued interest). These notes are subordinate to other debts of the Successor Agency. In September 1981, the Agency issued a long‐term note for $931,081 to reimburse a developer for the cost of oversizing storm drainage facilities in the Highway 12 Project Area. Interest accrued at 10% compounded annually through September 1, 1989 after which the note became non‐interest bearing. Total unpaid interest is $1,032,040, which has been added to the note. In February 1982, the Agency issued a non‐interest bearing long‐term note to reimburse a developer for the cost of oversizing storm drainage facilities in the Highway 12 Project Area for $178,378. No payments have been made on the loans. The loans will mature once the City of Fairfield loans have been satisfied and matured.
iv. Loans Payable to the City of Fairfield and the Fairfield Housing Authority
The City has made prior loans to the former Redevelopment Agency for redevelopment project costs. The loans payable due to the City of Fairfield for monies advanced to the Redevelopment Agency for various Redevelopment purposes. In fiscal year 2013‐2014, the City received approval from the Department of Finance (as well as the Oversight Board) to partially reinstate these loans owed to the City (to the Internal Service‐Intragovernmental Service Fund) in the principal amount of $12,047,692 ($11,337,538 for Cordelia and $710,154 for City Center). The first repayment on these loans will take place in the next fiscal year 2022‐2023, as the Successor Agency must first
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City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
95 pay off its loans from the Housing Authority (loans outstanding to the Housing Authority at June 30, 2022 were $297,083). Amounts owed at June 30, 2022 to the City’s HOME (grant) Fund are $109,689.
Amount Amount Due
Balance Incurred or Satisfied or Balance Due Within More Than 7/1/2021 Issued Matured 6/30/2022 One Year One Year
Loans Payable to the City of Fairfield
Regional Center ‐ Loan from HOME Fund 109,689$ 109,689$ 109,689$ Cordelia ‐ Loan from IGL Fund 11,337,538 11,337,538 101,459 11,236,079 City Center ‐ Loan from IGL Fund 710,154 710,154 101,459 608,695 Total Loans payable to the City 12,157,381 ‐$ ‐$ 12,157,381 202,918 11,954,463 Loans Payable to Housing Authority
City Center Loan 1,247,001 949,918 297,083 297,083 Highway 12 Loan 50,082 50,082 ‐ ‐
Total Loans payable to Housing Authority 1,297,083 ‐ 1,000,000 297,083 ‐ 297,083 Totals 13,454,464$ ‐$ 1,000,000$ 12,454,464$ 202,918 12,251,546$ The loans payable to the Fairfield Housing Authority are obligations that were previously owed to the Redevelopment low and moderate income housing fund. In prior years, the City received approval to transfer these housing assets (loans receivables) to the successor housing entity, which is the Fairfield Housing Authority. In the current year, per the schedule above, the Successor Agency requested monies for gradual repayments of these loans, via the Recognized Obligation Payment Schedule (ROPS) process. The repayment of this loan will be completed in fiscal year 2022‐2023.
20)Debt with No City Commitment
Special assessment districts in various parts of the City have issued debt under the 1915 Act and Mello‐Roos Special Tax Act of 1982 to finance infrastructure improvements and facilities within their boundaries. Neither the faith and credit nor the taxing power of the City, the State of California, or any political subdivision thereof is pledged to the payment of any debt service for these districts. Payment of the debt is secured by valid assessment liens placed upon certain lands within each district. The City is the collecting and paying agent for the debt issued by these Districts, but has no direct or contingent liability or moral obligation for the payment of this debt. Therefore, this debt is not included in the general long‐term debt of the City. This type of debt is accounted for in the custodial funds. In addition, the Fairfield Housing Authority issued debt in 2012 to serve as a conduit to assist a mobile home park in the refinancing of their previously existing bonds. This debt is not a liability of the City, as the mobile home park’s revenue collections are the sole source of payment and security on the bonds; and these revenues have been assigned by the Housing Authority to the trustee for direct payment on the bonds. As neither the City nor the Housing Authority have any financial liability for this debt, this debt is not included in the general long‐term debt of the City.
$
$
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City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
96 The outstanding balance of each of these issues as of June 30, 2022 is as follows:
Issue Maturity Balances
Description Date Date June 30, 2022
Communities Facilities District No. 3 ‐ Series 2018 12/5/18 9/1/37 10,910,000$ Communities Facilities District No. 2007‐1, Fairfield Commons, Series 2008 4/3/08 9/1/38 14,480,000 Communities Facilities District No. 2016‐1, Villages at Fairfield‐ Area A, Series 2018 1/25/18 9/1/48 3,690,000 Communities Facilities District No. 2016‐1, Villages at Fairfield‐ Area B, Series 2019A 8/8/19 9/1/49 19,800,000 Communities Facilities District No. 2016‐1, Villages at Fairfield‐ Area C, Series 2021A 11/23/21 9/1/52 22,880,000 Communities Facilities District No. 2019‐1, One Lake, Series 2020A 6/25/20 9/1/50 15,285,000 Communities Facilities District No. 2019‐1, One Lake, Series 2021A 9/30/21 9/1/51 11,825,000 Fairfield Housing Authority 2012 Revenue Bonds (Creekside Estates) 1/31/12 9/1/29 4,170,000 Total Non‐Commitment Debt 103,040,000$
21) Prior Period Adjustment
As of July 1, 2021, the City adopted GASB Statement No. 87, Leases (GASB 87). As a result, the City restated the governmental wide net position and the general fund, fund balance as of June 30, 2021, to properly reflect beginning net position and the change in accounting related to the implementation. The restatement is summarized as follows:
Governmental Fund Governmental Fund
Government ‐Wide Level Financial Statements
Governmental Activities General Fund
Net Position/Fund Balance at July 1, 2021, as previously stated 471,065,474$ 52,295,293$ Prior period adjustment:
Add right‐to‐use assets 458,469
Add lease liability (458,469)
Add lease receivable 8,617,937 8,617,937 Add deferred inflows of resources ‐ leases (8,617,937) (8,617,937) Net Position/Fund Balance at July 1, 2021, as restated 471,065,474$ 52,295,293$ Net Position/Fund Balance
22) Subsequent Event
In July of 2022, CalPERS announced a net investment return of negative 6.1% for fiscal year ending 2021‐22. This, along with the change in the discount rate to 6.8% will negatively impact the GASB 68 Net Pension Liability in future reporting periods. As the investment pool experienced gains in fiscal year 2021 resulting in a drastically reduced liability in fiscal year 2022, the City expects the inverse to be true in fiscal year 2023 as all gains were lost in fiscal year 2022. See Note 13 for further discussion on the GASB 68 Net Pension Liability and details as to the timing of the actuarially driven reporting process
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City of Fairfield, California Required Supplementary Information 97 Miscellaneous Plan Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Years* 2015 2016 2017 2018 2019 2020 2021 2022Total pension liabilityService cost 4,456,976$ 4,265,773$ 4,261,714$ 4,792,562$ 4,953,864$ 4,959,754$ 5,042,853$ 5,221,877$ Interest on the total pension liability 19,288,633 19,987,138 20,564,347 21,229,322 22,113,909 23,145,866 24,133,212 25,231,079 Differences between expected and actual experience‐ (2,954,005) (3,999,107) (901,217) 2,752,187 3,004,523 2,153,819 3,855,652 Changes in assumptions‐ (4,868,664) ‐ 17,376,981 (2,020,155) ‐ ‐ Benefit payments, including refunds of employee contributions (11,268,897) (12,209,765) (13,203,370) (13,733,897) (15,191,547) (16,093,011) (16,890,914) (18,641,949) Net change in total pension liability 12,476,712 4,220,477 7,623,584 28,763,751 12,608,258 15,017,132 14,438,970 15,666,659 Total pension liability ‐‐ beginning 260,587,733 273,064,445 277,284,922 284,908,506 313,672,257 326,280,515 341,297,647 355,736,617 Total pension liability ‐‐ ending (a)273,064,445 277,284,922 284,908,506 313,672,257 326,280,515 341,297,647 355,736,617 371,403,276 Plan fiduciary net positionContributions ‐ employer 3,415,841 4,147,940 4,923,250 5,608,699 6,305,148 7,460,599 9,054,680 9,903,995 Contributions ‐ employee 2,471,961 2,436,113 2,528,364 2,598,318 2,555,190 2,575,759 2,656,053 2,760,535 Net investment income 31,874,238 4,549,087 958,715 22,563,672 18,437,644 15,156,188 11,749,293 56,111,862 Benefit payments, including refunds of employee contributions (11,268,897) (12,209,765) (13,203,370) (13,733,897) (15,191,547) (16,093,011) (16,890,914) (18,641,949) Net Plan to Resource Movement(546) Other Miscellaneous Income/Expense(659,510) 546 Net change in fiduciary net position 26,493,143 (1,076,625) (4,793,041) 17,036,792 11,446,379 9,100,081 6,569,112 50,134,443 Plan fiduciary net position ‐‐ beginning 185,207,961 211,701,104 210,624,479 205,831,438 222,868,230 234,314,609 243,414,690 249,983,802 Plan fiduciary net position ‐‐ ending (b)211,701,104 210,624,479 205,831,438 222,868,230 234,314,609 243,414,690 249,983,802 300,118,245 Net pension liability ‐‐ ending (a) ‐ (b)61,363,341$ 66,660,443$ 79,077,068$ 90,804,027$ 91,965,906$ 97,882,957$ 105,752,815$ 71,285,031$ Plan fiduciary net position as a percentage of the total pension liability 77.53% 75.96% 72.24% 71.05% 71.81% 71.32% 70.27% 80.81%Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021Covered payroll (from prior year) 24,365,716$ 24,507,487$ 24,641,309$ 25,345,225$ 25,943,558$ 27,532,843$ 29,246,526$ 30,678,521$ 251.84% 272.00% 320.91% 358.27% 354.48% 355.51% 361.59% 232.36% * Fiscal year 2015 was the first year of implementation (GASB 68), therefore, only eight years are shown.Change of Assumptions ‐ At its December 2016 meeting, the CalPERS Board of Administration lowered the discount rate from 7.50% to 7.00% using a three‐year phase‐in beginning with the June 30, 2016 valuation. The minimum employer contributions for Fiscal Year 2018‐19 were calculated using a discount rate of 7.375%; the fiscal year 2019‐2020 minimum employer contributions will be calculated using a discount rate of 7.25%; and the fiscal year 2020‐2021 (and all years going forward) minimum employer contributions will be calculated using a discount rate of 7.0%. In the GASB 68 accounting valuation report for the period ended June 30, 2017, (which is used for calculating the net pension liability) the discount rate was reduced from 7.65% to 7.15% accordingly.Net pension liability as a percentage of covered payrollPacket Page 240 of 812Attachment 1 Page 118 of 188
City of Fairfield, California Required Supplementary Information (continued) 98 Safety Plan Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Years* 2015 2016 2017 2018 2019 2020 2021 2022Total pension liabilityService cost 5,672,753$ 5,385,012$ 5,258,222$ 6,300,021$ 6,296,742$ 6,522,394$ 7,032,195$ 7,034,201$ Interest on the total pension liability 17,334,621 18,224,032 18,921,981 19,573,221 20,572,192 21,922,457 23,007,358 24,001,451 Differences between expected and actual experience‐ (86,780) (2,588,170) (2,663,481) 2,678,526 6,491,163 1,812,363 (55,466) Changes in assumptions‐ (4,628,655) ‐ 16,931,340 (1,005,769) ‐ Benefit payments, including refunds of employee contributions (10,603,117) (11,504,270) (12,163,671) (12,963,887) (14,181,595) (14,994,561) (15,682,792) (16,480,599) Net change in total pension liability 12,404,257 7,389,339 9,428,362 27,177,214 14,360,096 19,941,453 16,169,124 14,499,587 Total pension liability ‐‐ beginning 233,593,448 245,997,705 253,387,044 262,815,406 289,992,620 304,352,716 324,294,169 340,463,293 Total pension liability ‐‐ ending (a)245,997,705 253,387,044 262,815,406 289,992,620 304,352,716 324,294,169 340,463,293 354,962,880 Plan fiduciary net positionContributions ‐ employer 4,742,507 5,065,553 5,640,187 6,815,028 7,234,241 18,568,978 12,849,535 14,601,731 Contributions ‐ employee 2,456,907 2,261,518 2,356,563 2,653,300 2,485,341 2,741,655 2,840,794 2,892,822 Net investment income 28,800,259 4,001,161 803,971 20,605,386 16,944,567 14,077,299 11,390,873 56,491,428 Benefit payments, including refunds of employee contributions (10,603,117) (11,504,270) (12,163,671) (12,963,887) (14,181,595) (14,994,561) (15,682,792) (16,480,599) Net Plan to Resource Movement(505) ‐ ‐ ‐ Other Miscellaneous Income/Expense(606,911) 505 Net change in fiduciary net position 25,396,556 (176,038) (3,362,950) 17,109,827 11,875,138 20,393,876 11,398,410 57,505,382 Plan fiduciary net position ‐‐ beginning 166,126,184 191,522,740 191,346,702 187,983,752 205,093,579 216,968,717 237,362,593 248,761,003 Plan fiduciary net position ‐‐ ending (b)191,522,740 191,346,702 187,983,752 205,093,579 216,968,717 237,362,593 248,761,003 306,266,385 Net pension liability ‐‐ ending (a) ‐ (b)54,474,965$ 62,040,342$ 74,831,654$ 84,899,041$ 87,383,999$ 86,931,576$ 91,702,290$ 48,696,495$ Plan fiduciary net position as a percentage of the total pension liability 77.86% 75.52% 71.53% 70.72% 71.29% 73.19% 73.07% 86.28%Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021Covered payroll (from prior year) 20,672,545$ 20,287,881$ 20,082,583$ 22,074,441$ 22,170,095$ 24,119,130$ 25,122,688$ 25,427,060$ 263.51% 305.80% 372.62% 384.60% 394.15% 360.43% 365.02% 191.51% * Fiscal year 2015 was the first year of implementation (GASB 68), therefore, only eight years are shown.Change of Assumptions ‐ At its December 2016 meeting, the CalPERS Board of Administration lowered the discount rate from 7.50% to 7.00% using a three‐year phase‐in beginning with the June 30, 2016 valuation. The minimum employer contributions for Fiscal Year 2018‐19 were calculated using a discount rate of 7.375%; the fiscal year 2019‐2020 minimum employer contributions will be calculated using a discount rate of 7.25%; and the fiscal year 2020‐2021 (and all years going forward) minimum employer contributions will be calculated using a discount rate of 7.0%. In the GASB 68 accounting valuation report for the period ended June 30, 2017, (which is used for calculating the net pension liability) the discount rate was reduced from 7.65% to 7.15% accordingly.Net pension liability as a percentage of covered payrollPacket Page 241 of 812Attachment 1 Page 119 of 188
City of Fairfield, California Required Supplementary Information (continued) 99 Schedule of Contributions – Miscellaneous Plan Last Ten Years* 2015 2016 2017 2018 2019 2020 2021 2022Actuarially determined contributions 4,147,940$ 4,923,250$ 5,608,699$ 6,278,436$ 7,455,288$ 9,054,751$ 9,892,323$ 11,163,419$ Contributions in relation to the actuarially determined contribution (4,147,940) (4,923,250) (5,608,699) (6,278,436) (7,455,288) (9,054,751) (9,892,323) (11,163,419) Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Covered payroll (from current year) 24,507,487$ 24,641,309$ 25,345,225$ 25,943,558$ 27,532,843$ 29,246,526$ 30,678,521$ 32,082,394$ Contributions as a percentage of covered payroll 16.93% 19.98% 22.13% 24.20% 27.08% 30.96% 32.25% 34.80%Notes to ScheduleValuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019Methods and assumptions used to determine contribution rates:Actuarial cost method Entry Age Normal Cost MethodAmortization method Level Percentage of PayrollRemaining amortization period 17 Years as of the Valuation DateAsset valuation method Market Value of AssetsInflation 2.75%Salary Increase 3.15% ‐ 11.25% depending on age, service and type of employmentInvestment Rate of Return 7.00% (net of administration expenses)Retirement age The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.Mortality * Fiscal year 2015 was the first year of implementation (GASB 68), therefore, only eight years are shown.The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre‐retirement and Post‐retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. Packet Page 242 of 812Attachment 1 Page 120 of 188
City of Fairfield, California Required Supplementary Information (continued) 100 Schedule of Contributions – Safety Plan Last Ten Years* 2015 2016 2017 2018 2019 2020 2021 2022Actuarially determined contributions 5,065,553$ 5,640,187$ 6,815,028$ 7,234,241$ 8,568,977$ 9,844,064$ 10,601,731$ 11,585,568$ Contributions in relation to the actuarially determined contribution (5,065,553) (5,640,187) (6,815,028) (7,234,241) (18,568,977) (12,844,064) (14,601,731) (11,585,568) Contribution deficiency (excess)‐$ ‐$ ‐$ ‐$ (10,000,000)$ (3,000,000)$ (4,000,000)$ ‐$ Covered payroll (from current year) 20,287,881$ 20,082,583$ 22,074,441$ 22,170,095$ 24,119,130$ 25,122,688$ 25,427,060$ 26,930,315$ Contributions as a percentage of covered payroll 24.97% 28.08% 30.87% 32.63% 76.99% 51.13% 57.43% 43.02%Notes to ScheduleValuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019Methods and assumptions used to determine contribution rates:Actuarial cost methodAmortization method Level Percentage of PayrollRemaining amortization period 17 Years as of the Valuation DateAsset valuation method Market Value of AssetsInflationSalary Increase 3.72% ‐ 19.75% depending on age, service and type of employmentInvestment Rate of Return 7.00% (net of administration expenses)Retirement age The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.Mortality * Fiscal year 2015 was the first year of implementation (GASB 68), therefore, only eight years are shown.** In FY 18/19, FY 19/20 and FY 20/21, the Safety Plan's contribution includes a one‐time $10,000,000, $3,000,000 and $4,000,000 payment, respectively, towards the Safety Plan's unfunded liability.2.75%The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre‐retirement and Post‐retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries.Entry Age Normal Cost Method Packet Page 243 of 812Attachment 1 Page 121 of 188
City of Fairfield, California
Required Supplementary Information (continued)
101
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
2018 2019 2020 2021 2022
Total OPEB liability ‐ Beginning 3,192,938$ 3,153,300$ 2,606,431$ 2,648,042$ 2,662,388$ Service cost 18,300 18,895
Interest on the OPEB liability 208,731 198,022 161,227 149,013 148,706 Differences between expected and actual experience (606,345) 88,699 Changes in assumptions 93,961 132,429 21,424 Benefit payments (266,669) (251,402) (252,045) (244,790) (240,812) Net change in OPEB liability (39,638) (546,869) 41,611 14,346 (92,106) Total OPEB liability ‐‐ ending (a)3,153,300$ 2,606,431$ 2,648,042$ 2,662,388$ 2,570,282$ Plan fiduciary net position
Employer Contribution to the Trust 500,000$ 1,000,000$ 500,000$ Employer Contribution ‐ Direct Benefit Payments 266,669$ 251,402 252,045 244,790 137,500 Net investment income 687 99,467 106,318 448,334 Benefit payments (266,669) (251,402) (252,045) (244,790) (240,812) Administrative expenses (27) (215) (909) (835) Net change in fiduciary net position ‐ 500,660 1,099,252 605,409 344,187 Plan fiduciary net position ‐‐ beginning ‐ ‐ 500,660 1,599,912 2,205,321 Plan fiduciary net position ‐‐ ending (b)‐ 500,660 1,599,912 2,205,321 2,549,508 Net OPEB liability ‐‐ ending (a) ‐ (b)3,153,300$ 2,105,771$ 1,048,130$ 457,067$ 20,774$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 19.21% 60.42% 82.83% 99.19%
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Covered‐employee payroll (from prior year) 396,752$ 214,999$ N/A** N/A** N/A** 794.78% 979.43% N/A** N/A** N/A**
* Fiscal year 2018 was the first year of implementation (GASB 75), therefore, only five years are shown. ** All members of the closed plan are retired and there are no active employees.
Net OPEB liability as a percentage of covered‐employee payroll
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City of Fairfield, California
Required Supplementary Information (continued)
102
Schedule of Contributions ‐ Net OPEB Liability
Last Ten Years*
2018 2019 2020 2021 2022
Actuarially determined contributions 246,546$ 506,722$ 281,374$ 101,350$ 82,663$ Contributions in relation to the actuarially determined contribution (751,402) (1,252,045) (744,790) (137,500) (217,666) Contribution deficiency (excess) (504,856)$ (745,323)$ (463,416)$ (36,150)$ (135,003)$ Covered‐employee payroll (from current year) 214,999$ N/A ** N/A ** N/A ** N/A ** Contributions as a percentage of covered‐employee payroll 349.49% N/A ** N/A ** N/A ** N/A ** Notes to Schedule
Valuation date: 6/30/2016 6/30/2018 6/30/2018 6/30/2020 6/30/2020 Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method/period Level dollar payments; closed 5 year period Asset valuation method
Inflation
Payroll Growth N/A
Healthcare cost‐trend rates
Investment Rate of Return 5.85%
Retirement age N/A; all members are retired
Mortality
* Fiscal year 2018 was the first year of implementation (GASB 75), therefore, only five years are shown. ** All members of the closed plan are retired and there are no active employees.
Market Value
2.50%
Health‐ 5.8% in 2021, step down to 4% by 2076
2017 CalPERS Experience Study; Improvement using MW Scale 2020
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City of Fairfield, California
Supplementary Information
103
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City of Fairfield, California
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
City Capital Projects – Major Fund
For the Year Ended June 30, 2022
104
Capital
Variance with
Final Budget ‐
Final Positive
Budget Actual (Negative)
Revenues:
Development fees 6,984,538$ 7,251,588$ 267,050$ Developer contributions 2,271,310 2,271,310
Intergovernmental 7,032,673 3,942,645 (3,090,028) Investment income 337,100 406,234 69,134 Net decrease in fair value of investments (1,788,367) (1,788,367) Miscellaneous 300,000 100,584 (199,416) Total Revenues 14,654,311 12,183,994 (2,470,317) Expenditures:
Capital outlay 40,140,395 17,436,405 22,703,990 Excess (deficiency) revenues
over (under) expenditures (25,486,084) (5,252,411) 20,233,673 Other Financing Sources (Uses):
Transfers in 17,576,274 8,282,748 (9,293,526) Transfers out (68,298) (68,298)
Total other financing sources (uses) 17,507,976 8,214,450 (9,293,526) Net change in fund balance (7,978,108) 2,962,039 10,940,147 Fund Balance ‐ Beginning of Year 47,231,735 47,231,735 Fund Balance ‐ End of Year 39,253,627$ 50,193,774$ 10,940,147$
Projects Budget Actual
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City of Fairfield, California
Non Major Governmental Funds
Special Revenue Funds
105
State Gas Tax
To account for monies received and expended from State Gas Tax allocation to cities.
Home Program
To account for monies received and expended under the Home Investment Partnerships Program (HOME).
Funds are provided by the Federal Government and passed through the State of California.
Neighborhood Stabilization Program
To account for monies received and expended under the Neighborhood Stabilization Program (NSP) issued under the American Reinvestment and Recovery Act (ARRA) of 2008. Funds are provided by the Federal Government and passed through the State of California.
Development Tax
To account for monies received from taxes levied by the City on new residential construction based on the number of bedrooms in each unit, square footage of all new commercial construction and units of residential construction. City ordinance commits these monies to funding construction, major maintenance and debt service for park, street, drainage and public safety facilities.
Maintenance Districts
To account for maintenance districts monies received from taxes levied on property owners located within the districts.
Community Development Block Grant
To account for monies received and expended by the City as a participant in the Federal Community Development Block Grant program, including accounting for activity related to the revolving loan fund program.
Section 8 Housing Assistance
To account for monies received and expended in housing assistance to low and moderate income families.
Funds are provided by receipts from Housing and Urban Development (HUD) for the Federal Section 8 Housing Choice Voucher program.
Improvement Districts
To account for monies received from the special taxes collected related to the Downtown Improvement District, the North Texas Business Improvement District, and the Tourism Business Improvement District. There was no adopted budget for the fund. Therefore, there is no accompanying budget and actual schedule.
Packet Page 248 of 812Attachment 1 Page 126 of 188
City of Fairfield, California
Non Major Governmental Funds
Other Funds
106
Debt Service Funds
General Obligation
To account for property tax monies and zone of benefit taxes levied for the payment of voter approved debt principal and interest and payment of contractual obligations.
Pension Obligation Bonds
To account for the proceeds of the bonds issued to refund the City’s unfunded liability to the CalPERS retirement system; and to account for the ongoing accumulation of resources used in making payments on this debt.
Capital Project Fund
Assessment and Improvement Districts
To account for the construction of public improvements deemed to benefit the properties against which special assessments are levied. Activities financed through assessments include street lighting and paving, utility and other general infrastructure improvements. In addition, to account for the activities in the Community Facilities Districts and the Rancho Solano and North Texas Benefit Districts.
Permanent Fund
Outreach Independence
To account for monies donated to the City and the Friends of the Senior Center for disbursements relating to senior citizen outreach programs.
Packet Page 249 of 812Attachment 1 Page 127 of 188
City of Fairfield, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2022
107
Neighborhood
State Gas Home Stabilization Development
Tax Program Program Tax
Assets:
Cash and investments 4,469,169$ 1,918,504$ 440,944$ 16,165,493$ Receivables, net 664,983 14,044,877 962,311 Restricted cash and investments
Total assets 5,134,152$ 15,963,381$ 1,403,255$ 16,165,493$ Liabilities:
Accounts payable and other current liabilities 8,210$ 1,190$ 85,627$ Advances from other funds
Total liabilities ‐$ 8,210 1,190 85,627$ Deferred Inflows Of Resources:
Unavailable revenue‐loans interest receivable 2,798,106 Fund balances:
Nonspendable
Restricted 5,134,152 13,157,065 1,402,065
Committed 16,079,866
Assigned
Total fund balances 5,134,152 13,157,065 1,402,065 16,079,866 Total liabilities, deferred inflows of
resources, and fund balances 5,134,152$ 15,963,381$ 1,403,255$ 16,165,493$ Special Revenue
Packet Page 250 of 812Attachment 1 Page 128 of 188
108
Community Section 8
Maintenance Development Housing Improvement
Districts Block Grant Assistance Districts
17,835,992$ 207,408$ 517,814$ 59,184$ 52,683 3,851,035 27,449 202,758 392,722
17,888,675$ 4,451,165$ 545,263$ 261,942$ 606,000$ 272,113$ 29,295$ 202,427$ 736,000
1,342,000 272,113 29,295 202,427 393,413
16,546,675 3,785,639 515,968 59,515 16,546,675 3,785,639 515,968 59,515 17,888,675$ 4,451,165$ 545,263$ 261,942$ Special Revenue
Packet Page 251 of 812Attachment 1 Page 129 of 188
City of Fairfield, California
Combining Balance Sheet (continued)
Non‐Major Governmental Funds
June 30, 2022
109
Capital
Debt Service Projects
Pension Assessment &
General Obligation Community Facilities
Obligation Bonds Districts
Assets:
Cash and investments 1,233,228$ 1,634,682$ 19,586,856$ Receivables, net 4,454 63,179
Restricted cash and investments
Total assets 1,233,228$ 1,639,136$ 19,650,035$ Liabilities:
Accounts payable and other current liabilities 50,703$ Advances from other funds
Total liabilities ‐$ ‐$ 50,703 Deferred Inflows Of Resources:
Unavailable revenue‐loans interest receivable
Fund balances:
Nonspendable
Restricted 1,233,228 19,599,332
Committed
Assigned 1,639,136
Total fund balances 1,233,228 1,639,136 19,599,332 Total liabilities, deferred inflows of
resources, and fund balances 1,233,228$ 1,639,136$ 19,650,035$ Packet Page 252 of 812Attachment 1 Page 130 of 188
110
Permanent
Fund
Total
Non‐Major
Outreach Governmental
Independence Funds
370,321$ 64,439,595$
1,131 19,874,860
392,722
371,452$ 84,707,177$
1,255,565$
736,000
‐$ 1,991,565
3,191,519
335,375 335,375
36,077 61,469,716
16,079,866
1,639,136
371,452 79,524,093
371,452$ 84,707,177$
Packet Page 253 of 812Attachment 1 Page 131 of 188
City of Fairfield, California
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Non‐Major Governmental Funds
For the Year Ended June 30, 2022
111
Neighborhood
State Gas Home Stabilization Development
Tax Program Program Tax
Revenues:
Taxes 3,049,011$
Property taxes
Special assessments levied
Developers' contribution
Intergovernmental 5,212,932$
Investment income 47,303 84,991$ 6,661$ Net decrease in fair value of investments (214,519) (68,895) (16,093) Miscellaneous
Total revenues 5,045,716 16,096 (9,432) 3,049,011 Expenditures:
Current:
Police
Public works 32,854 7,790
Parks and recreation 24,807
Community development
Housing services 462,802 2,880
Capital outlay
Debt service:
Principal retirement
Interest
Fiscal agent fees
Total expenditures 32,854 462,802 2,880 32,597 Excess (deficiency) of revenues
over (under) expenditures 5,012,862 (446,706) (12,312) 3,016,414 Other Financing Sources (Uses):
Leases (Lessee)
Transfers in
Transfers out (3,965,264) (3,032,259) Total other financing sources (uses)(3,965,264) ‐ ‐ (3,032,259) Net change in fund balances 1,047,598 (446,706) (12,312) (15,845) Fund Balances:
Beginning of year 4,086,554 13,603,771 1,414,377 16,095,711 End of year 5,134,152$ 13,157,065$ 1,402,065$ 16,079,866$ Special Revenue
Packet Page 254 of 812Attachment 1 Page 132 of 188
112
Community Section 8
Maintenance Development Housing Improvement
Districts Block Grant Assistance Districts
849,666$
4,346,358$
776,500 1,595,849$ 10,601,881$
137,611 9,195 5,100 1,381 (643,333) (16,176) (4,904)
71,032 28,688 4,688,168 1,605,044 10,619,493 846,143 10,800
5,544,237 152,206
22,096
816,315
1,587,651 10,811,337
38,582
582
5,544,237 1,772,753 10,850,501 816,315 (856,069) (167,709) (231,008) 29,828 336,762
214,922
(28,291) (19,415) 186,631 ‐ 317,347 ‐ (669,438) (167,709) 86,339 29,828 17,216,113 3,953,348 429,629 29,687 16,546,675$ 3,785,639$ 515,968$ 59,515$ Special Revenue
Packet Page 255 of 812Attachment 1 Page 133 of 188
City of Fairfield, California
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (continued)
Non‐Major Governmental Funds
For the Year Ended June 30, 2022
113
Capital
Projects
Pension Assessment &
General Obligation Community Facilities
Obligation Bonds Districts
Revenues:
Taxes
Property taxes 390,990$
Special assessments levied 4,663,312$
Developers' contribution 94,119
Intergovernmental
Investment income 21,348$ 159,663
Net decrease in fair value of investments (52,206) (744,069) Miscellaneous 116,805
Total revenues 390,990 (30,858) 4,289,830 Expenditures:
Current:
Police
Public works
Parks and recreation
Community development
Housing services
Capital outlay 1,154,092
Debt service:
Principal retirement 421,890 1,785,000
Interest 1,197,333
Fiscal agent fees 11,782 6,092
Total expenditures 433,672 2,988,425 1,154,092 Excess (deficiency) of revenues
over (under) expenditures (42,682) (3,019,283) 3,135,738 Other Financing Sources (Uses):
Leases (Lessee)
Transfers in 3,173,753
Transfers out (2,265,176)
Total other financing sources (uses)‐ 3,173,753 (2,265,176) Net change in fund balances (42,682) 154,470 870,562 Fund Balances:
Beginning of year 1,275,910 1,484,666 18,728,770 End of year 1,233,228$ 1,639,136$ 19,599,332$
Debt Service
Packet Page 256 of 812Attachment 1 Page 134 of 188
114
Permanent
Total
Non‐Major
Outreach Governmental
Independence Funds
3,898,677$
390,990
9,009,670
94,119
18,187,162
3,128$ 476,381
(13,773) (1,773,968)
216,525
(10,645) 30,499,556
10,800
5,737,087
46,903
816,315
12,864,670
1,154,092
2,245,472
1,197,915
17,874
‐ 24,091,128
(10,645) 6,408,428
336,762
3,388,675
(9,310,405)
‐ (5,584,968)
(10,645) 823,460
382,097 78,700,633
371,452$ 79,524,093$
Packet Page 257 of 812Attachment 1 Page 135 of 188
City of Fairfield, California
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances ‐ Budget and Actual
Non‐Major Governmental Funds
For the Year Ended June 30, 2022
115
Revenues: Final Budget Actual Variance Final Budget Actual Variance Taxes
Property taxes
Special assessments levied
Developer contributions
Intergovernmental 4,931,000$ 5,212,932$ 281,932$ 645,718$ (645,718)$ Investment income 52,000 47,303 (4,697) 84,991$ 84,991 Net decrease in fair value of investments (214,519) (214,519) (68,895) (68,895) Miscellaneous
Total Revenues 4,983,000 5,045,716 62,716 645,718 16,096 (629,622) Expenditures:
Current:
Administration
Finance
Police
Fire
Public works 32,854 32,854
Parks and recreation
Community development
Housing services 645,718 462,802 182,916 Capital Outlay
Debt Service:
Principal retirement
Interest
Fiscal fees
Total Expenditures 32,854 32,854 ‐ 645,718 462,802 182,916 Excess (deficiency) of revenues
over (under) expenditures 4,950,146 5,012,862 62,716 ‐ (446,706) (446,706) Other Financing Sources (Uses):
Leases (as Lessee)
Transfers in 500,000 500,000 Transfers out (8,621,224) (3,965,264) 4,655,960 Total other financing sources (uses) (8,121,224) (3,965,264) 4,155,960 ‐ ‐ ‐ Net change in fund balances (3,171,078) 1,047,598 4,218,676 ‐ (446,706) (446,706) Beginning Fund Balances 4,086,554 4,086,554 ‐ 13,603,771 13,603,771 ‐ Ending Fund Balances 915,476$ 5,134,152$ 4,218,676$ 13,603,771$ 13,157,065$ (446,706)$ Special Revenue Funds
State Gas Tax Home Program
Packet Page 258 of 812Attachment 1 Page 136 of 188
116
Final Budget Actual Variance Final Budget Actual Variance Final Budget Actual Variance 3,338,584$ 3,049,011$ (289,573)$
4,348,394$ 4,346,358$ (2,036)$
776,500 776,500 ‐
6,661$ 6,661$ 159,045 137,611 (21,434) (16,093) (16,093) (643,333) (643,333) 71,032 71,032
‐$ (9,432) (9,432) 3,338,584 3,049,011 (289,573) 5,283,939 4,688,168 (595,771) 7,790 7,790 6,350,445 5,544,237 806,208 24,807 24,807
2,880 (2,880)
‐ 2,880 (2,880) 32,597 32,597 ‐ 6,350,445 5,544,237 806,208 ‐ (12,312) (12,312) 3,305,987 3,016,414 (289,573) (1,066,506) (856,069) 210,437 236,399 214,922 21,477
(5,339,377) (3,032,259) 2,307,118 (37,436) (28,291) 9,145 ‐ ‐ ‐ (5,339,377) (3,032,259) 2,307,118 198,963 186,631 (12,332) ‐ (12,312) (12,312) (2,033,390) (15,845) 2,017,545 (867,543) (669,438) 198,105 1,414,377 1,414,377 ‐ 16,095,711 16,095,711 ‐ 17,216,113 17,216,113 ‐ 1,414,377$ 1,402,065$ (12,312)$ 14,062,321$ 16,079,866$ 2,017,545$ 16,348,570$ 16,546,675$ 198,105$ Maintenance DistrictsNeighborhood Stabilization Program Development Tax Special Revenue Funds
Packet Page 259 of 812Attachment 1 Page 137 of 188
City of Fairfield, California
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances ‐ Budget and Actual (continued) Non‐Major Governmental Funds
For the Year Ended June 30, 2022
117
Revenues: Final Budget Actual Variance Final Budget Actual Variance Taxes
Property taxes
Special assessments levied
Developer contributions
Intergovernmental 876,075$ 1,595,849$ 719,774$ 11,356,096$ 10,601,881$ (754,215)$ Investment income 9,195 9,195 5,100 5,100 Net decrease in fair value of investments (16,176) (16,176) Miscellaneous 14,000 28,688 14,688 Total Revenues 876,075 1,605,044 728,969 11,370,096 10,619,493 (750,603) Expenditures:
Current:
Administration
Finance
Police 10,800 10,800
Fire
Public works 152,206 152,206
Parks and recreation 22,096 22,096
Community development
Housing services 690,973 1,587,651 (896,678) 11,355,351 10,811,337 544,014 Capital Outlay
Debt Service:
Principal retirement 38,582 (38,582)
Interest 582 (582)
Fiscal fees
Total Expenditures 876,075 1,772,753 (896,678) 11,355,351 10,850,501 504,850 Excess (deficiency) of revenues
over (under) expenditures ‐ (167,709) (167,709) 14,745 (231,008) (245,753) Other Financing Sources (Uses):
Leases (as Lessee)336,762 336,762
Transfers in
Transfers out (18,180) (19,415) (1,235) Total other financing sources (uses)‐ ‐ ‐ (18,180) 317,347 335,527 Net change in fund balances ‐ (167,709) (167,709) (3,435) 86,339 89,774 Beginning Fund Balances 3,953,348 3,953,348 ‐ 429,629 429,629 ‐ Ending Fund Balances 3,953,348$ 3,785,639$ (167,709)$ 426,194$ 515,968$ 89,774$ Section 8 Housing Block Grant
Special Revenue Funds
Community Development
Packet Page 260 of 812Attachment 1 Page 138 of 188
118
Final Budget Actual Variance Final Budget Actual Variance Final Budget Actual Variance
366,224$ 390,990$ 24,766$
4,623,320$ 4,663,312$ 39,992$
94,119 94,119
21,348$ 21,348$ 139,409 159,663 20,254 (744,069) (744,069)
(52,206) (52,206) 80,000 116,805 36,805 366,224 390,990 24,766 ‐$ (30,858) (30,858) 4,842,729 4,289,830 (552,899) 1,213,074 1,154,092 58,982
421,890 421,890 1,725,000 1,785,000 (60,000) 1,250,362 1,197,333 53,029
16,286 11,782 4,504 7,718 6,092 1,626 438,176 433,672 4,504 2,983,080 2,988,425 (5,345) 1,213,074 1,154,092 58,982 (71,952) (42,682) 29,270 (2,983,080) (3,019,283) (36,203) 3,629,655 3,135,738 (493,917)
3,000,000 3,173,753 173,753
(2,225,072) (2,265,176) (40,104)
‐ ‐ ‐ 3,000,000 3,173,753 173,753 (2,225,072) (2,265,176) (40,104) (71,952) (42,682) 29,270 16,920 154,470 137,550 1,404,583 870,562 (534,021) 1,275,910 1,275,910 ‐ 1,484,666 1,484,666 ‐ 18,728,770 18,728,770 ‐ 1,203,958$ 1,233,228$ 29,270$ 1,501,586$ 1,639,136$ 137,550$ 20,133,353$ 19,599,332$ (534,021)$ Pension Obligation BondsGeneral Obligation Bonds Districts Capital Project Fund
Assessment & Community Facilities
Debt Service Funds
Packet Page 261 of 812Attachment 1 Page 139 of 188
City of Fairfield, California
People and Places in the City
119
Packet Page 262 of 812Attachment 1 Page 140 of 188
City of Fairfield, California
Internal Service Funds
120
Service Fund Descriptions
Central Services
To account for the printing, copying, and mail services provided to the various City departments; as well as accounting for public work maintenance supplies for the various City departments.
Vehicle Services/ Replacement
To account for automotive services performed for the various City departments as well as accounting for the City’s Vehicle Replacement Fund.
Information Technology
To account for the charges to the various departments for the use and maintenance of the main power supplies for various communication devices such as hand radios, phones, computers, and closed circuit video cameras throughout the City.
Intragovernmental Loan
To account for loans made to City funds or affiliated agencies.
Insurance
To account for all insurance activities of the City excluding OPEB.
Retiree Insurance (OPEB)
To account for the payment of Other Post‐Employment Benefits including medical and dental premiums for retired executive management employees.
Public Facilities
To account for the operations of the cogeneration facilities, the major maintenance of the Civic Center complex, Parks, Fire Department Facilities and equipment.
Compensated Absences
To account for the funding and tracking of the liabilities for vacation, personal leave, and sick leave for the Governmental Activities of the City.
Packet Page 263 of 812Attachment 1 Page 141 of 188
City of Fairfield, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
121
Vehicle
Central Services/ Information
Services Replacement Technology
Current Assets
Cash and investments 465,976$ 7,335,788$ 6,761,942$ Receivables, net 1,365 21,877 92,960 Due from other funds
Inventory 71,474 773,452
Prepaid items 686,883
Total current assets 538,815 8,131,117 7,541,785 Noncurrent Assets
Advances to other funds
Loans receivable
Capital Assets:
Non‐depreciable 2,619,862 1,794,489
Depreciable 28,231 26,093,624 9,708,011 Less: accumulated depreciation (21,066) (13,207,977) (3,909,567) Total Capital Assets 7,165 15,505,509 7,592,933 Total noncurrent assets 7,165 15,505,509 7,592,933 Total assets 545,980 23,636,626 15,134,718 Deferred Outflows of Resources:
Deferred outflow related to OPEB
Liabilities:
Current Liabilities
Accounts payable and other current liabilities 4,839 780,911 276,371 Accrued interest payable
Claims and judgments payable ‐ due within one year
Compensated absences ‐ due within one year
Long‐term debt ‐ due within one year 73,374
Total current liabilities 4,839 780,911 349,745 Noncurrent Liabilities
Net OPEB liability
Claims and judgments payable ‐ due in more than one year Compensated absences ‐ due in more than one year
Long‐term debt ‐ due in more than one year 282,400
Total noncurrent liabilities ‐ ‐ 282,400 Total liabilities 4,839 780,911 632,145 Deferred Inflows of Resources:
Deferred inflows related to OPEB
Net Position:
Net investment in capital assets 7,165 15,505,509 7,231,621 Unrestricted 533,976 7,350,206 7,270,952 Total net position (deficit)541,141$ 22,855,715$ 14,502,573$ Assets:
Packet Page 264 of 812Attachment 1 Page 142 of 188
122
Intra‐Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
22,502,162$ 20,104,409$ 1,385,047$ 4,755,814$ 4,825,553$ 68,136,691$ 42,646 63,370 4,237 14,844 14,962 256,261 7,346,708 7,346,708
844,926
686,883
29,891,516 20,167,779 1,389,284 4,770,658 4,840,515 77,271,469 736,000 736,000
12,047,692 12,047,692
4,414,351
4,182,597 40,012,463
(3,045,605) (20,184,215)
‐ ‐ ‐ 1,136,992 ‐ 24,242,599 12,783,692 ‐ ‐ 1,136,992 ‐ 37,026,291 42,675,208 20,167,779 1,389,284 5,907,650 4,840,515 114,297,760 217,666 217,666
100 14,407 270,379 1,347,007 27 27
2,607,528 2,607,528
4,792,312 4,792,312
119,155 192,529
100 2,621,935 389,561 4,792,312 8,939,403 20,774 20,774
11,591,472 11,591,472
13,546,852 13,546,852
282,400
‐ 11,591,472 20,774 13,546,852 25,441,498 100 14,213,407 20,774 389,561 18,339,164 34,380,901 266,874 266,874
1,136,992 23,881,287
42,675,108 5,954,372 1,319,302 4,381,097 (13,498,649) 55,986,364 42,675,108$ 5,954,372$ 1,319,302$ 5,518,089$ (13,498,649)$ 79,867,651$ Packet Page 265 of 812Attachment 1 Page 143 of 188
City of Fairfield, California
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2022
123
Vehicle
Central Services/ Information
Services Replacement Technology
Operating Revenues:
Charges for services 311,581$ 12,131,391$ 7,073,531$ Total operating revenues 311,581 12,131,391 7,073,531 Operating Expenses:
Material and supplies 150,192 3,057,586 1,715,112 Operating and maintenance 5,456 4,252,227 3,637,123 General and administrative 178,505 540,746 3,205,308 Insurance claims and premiums
Depreciation and amortization 3,954 1,849,900 723,135 Total operating expenses 338,107 9,700,459 9,280,678 Operating Income (loss) (26,526) 2,430,932 (2,207,147) Nonoperating Revenues (Expenses):
Investment income 3,943 50,462 74,077 Net decrease in fair value of investments (17,172) (260,240) (294,102) Interest expense
Intergovernmental revenue
Other revenue 293,859 31,322
Total nonoperating revenues (expenses)(13,229) 84,081 (188,703) Income (loss) before transfers (39,755) 2,515,013 (2,395,850) Transfers:
Transfers in
Transfers out (3,993) (80,976) (94,643) Total transfers (3,993) (80,976) (94,643) Change in net position (43,748) 2,434,037 (2,490,493) Net Position (Deficit):
Beginning of year 584,889 20,421,678 16,993,066 End of year 541,141$ 22,855,715$ 14,502,573$
Packet Page 266 of 812Attachment 1 Page 144 of 188
124
Intra‐Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
6,232,498$ 123,641$ 1,595,199$ 4,009,315$ 31,477,156$ ‐$ 6,232,498 123,641 1,595,199 4,009,315 31,477,156 546,871 4,135,533 9,605,294
706,185 1,019,995 9,620,986
26,762 1,006,264 10,769 4,968,354 6,733,223 (21,192) 6,712,031
246,263 2,823,252
732,947 7,739,487 (10,423) 1,813,129 4,135,533 33,729,917 (732,947) (1,506,989) 134,064 (217,930) (126,218) (2,252,761) 69,579 174,681 12,671 40,938 42,251 468,602 (523,011) (773,154) (47,063) (181,169) (184,844) (2,280,755) (3,221) (3,221)
196,022 196,022
1,077,764 1,402,945
624,332 (598,473) (34,392) 52,570 (142,593) (216,407) (108,615) (2,105,462) 99,672 (165,360) (268,811) (2,469,168) 16,700,000 240,000 16,940,000
(1,120,088) (32,861) (145,374) (1,477,935) 15,579,912 (32,861) ‐ 94,626 ‐ 15,462,065 15,471,297 (2,138,323) 99,672 (70,734) (268,811) 12,992,897 27,203,811 8,092,695 1,219,630 5,588,823 (13,229,838) 66,874,754 42,675,108$ 5,954,372$ 1,319,302$ 5,518,089$ (13,498,649)$ 79,867,651$ Packet Page 267 of 812Attachment 1 Page 145 of 188
City of Fairfield, California
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
125
Vehicle
Central Services/ Information
Services Replacement Technology
Cash Flows from Operating Activities:
Receipts from interfund services provided 311,581$ 12,131,391$ 7,073,531$ Payments to suppliers (165,849) (4,281,731) (5,780,832) Payments to employees (113,927) (2,537,831) (2,760,470) Payments for interfund services used (64,578) (488,879) (302,940) Net cash provided by (used for) operating activities (32,773) 4,822,950 (1,770,711) Cash Flows from Noncapital Financing Activities:
Receipt of other revenue 33,225
Transfers in
Transfers out (3,993) (80,976) (94,643) Net cash provided by (used for) noncapital
financing activities (3,993) (80,976) (61,418) Cash Flows from Capital and Related Financing Activities:
Principal payments‐notes payable
Interest paid
Proceeds from sales of capital assets 318,064
Principal paid‐ lease liabilities (24,778)
Interest paid‐ lease liabilities (1,903)
Capital contributions
Acquisition and construction of capital assets (8,268) (4,206,816) (1,504,925) Net cash provided by (used for) capital and
related financing activities (8,268) (3,888,752) (1,531,606) Cash Flows from Investing Activities:
Investment income received (13,090) (40,543) (182,892) Net cash provided by investing activities (13,090) (40,543) (182,892) Net increase (decrease) in
cash and cash equivalents (58,124) 812,679 (3,546,627) Cash and Cash Equivalents:
Beginning of year 524,100 6,523,109 10,308,569 End of year 465,976$ 7,335,788$ 6,761,942$
Packet Page 268 of 812Attachment 1 Page 146 of 188
126
Intra‐Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
6,232,497$ 123,641$ 1,595,199$ 4,009,315$ 31,477,155$ (8,888,112)$ (7,554,984) (257,305) (1,265,001) (28,193,814) (923,129) (135,911) (4,611,644) (11,082,912) (26,399) (124,267) (37,267) (1,044,330) (8,914,511) (2,369,883) (133,664) 157,020 (602,329) (8,843,901) 1,077,764 1,110,989
16,700,000 240,000 16,940,000
(1,120,088) (32,861) (145,374) (1,477,935) 16,657,676 (32,861) ‐ 94,626 ‐ 16,573,054 (257,734) (257,734)
(3,287) (3,287)
318,064
(24,778)
(1,903)
(94,810) (5,814,819)
‐ ‐ ‐ (355,831) ‐ (5,784,457) (453,752) (594,565) (34,904) (140,640) (142,244) (1,602,630) (453,752) (594,565) (34,904) (140,640) (142,244) (1,602,630) 7,289,413 (2,997,309) (168,568) (244,825) (744,573) 342,066 15,212,749 23,101,718 1,553,615 5,000,639 5,570,126 67,794,625 22,502,162$ 20,104,409$ 1,385,047$ 4,755,814$ 4,825,553$ 68,136,691$ Packet Page 269 of 812Attachment 1 Page 147 of 188
City of Fairfield, California
Combining Statement of Cash Flows (continued)
Internal Service Funds
For the Year Ended June 30, 2022
127
Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:
Operating income (loss) (26,526)$ 2,430,932$ (2,207,147)$ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization expense 3,954 1,849,900 723,135 (Increase) in inventory (8,883) 72,236
(Increase) in prepaid items (89,219)
(Increase) in due from other funds
(Increase) decrease in receivables
(Increase) decrease in Advances to Other Funds
(Increase) in deferred outflows
Increase (decrease) in accounts payable (1,318) 469,882 (197,480) Increase in claims and judgments payable
(Decrease) in compensated absences
Non‐cash expense
Total adjustment (6,247) 2,392,018 436,436 Net cash provided by (used for) operating activities (32,773)$ 4,822,950$ (1,770,711)$ Non ‐cash transactions:
Lease liability for the acquisition of right to use asset (380,552)$
Packet Page 270 of 812Attachment 1 Page 148 of 188
128
(732,947)$ (1,506,989)$ 134,064$ (217,930)$ (126,218)$ (2,252,761)$ 246,263 2,823,252
63,353
(89,219)
(7,346,708) (7,346,708)
(2,187) (2,187)
(736,000) (736,000)
(217,666) (217,666)
(98,856) (63,458) (5,950) 128,687 231,507 (797,249) (44,112) (841,361) (476,111) (476,111)
‐
(8,181,564) (862,894) (267,728) 374,950 (476,111) (6,591,140) (8,914,511)$ (2,369,883)$ (133,664)$ 157,020$ (602,329)$ (8,843,901)$ (380,552)$
Packet Page 271 of 812Attachment 1 Page 149 of 188
City of Fairfield, California
People and Places in the City
129
Packet Page 272 of 812Attachment 1 Page 150 of 188
City of Fairfield, California
Custodial Funds
130
Fund Descriptions
Other Deposits
To account for deposits received from outside parties that are held in a custodial capacity. Some of the large items include deposits for: encroachment permit bonds and deposits, restitution for crimes committed, and asset seizures.
Fairfield‐Suisun Sewer District
To account for the activities of the Fairfield‐Suisun Sewer District.
Solano Animal Control Authority
To account for monies for the operation of the Solano Animal Control Authority.
Green Valley Open Space Maintenance District
To account for maintenance district monies received from taxes levied on properties located in Solano County for acquisition of open space and maintenance in Green Valley.
Tri‐City and County Regional Parks and Open Space Group To account for monies contributed from Solano County and the cities of Benicia, Fairfield and Vallejo for the study and development of a coordinated system of recreation and open space between the three cities.
CFD Debt Service
To account for the financing and debt service of Community Facilities Districts, that have been determined to be debt with no City commitment (non‐commitment debt). This fund accounts for the collection of assessments and servicing of this non‐commitment debt.
Fairfield Housing and Community Development Corporation To account for the resources of the 501c3 corporation that has been formed for the purposes of carrying out support for affordable housing, and promoting community development initiatives.
Packet Page 273 of 812Attachment 1 Page 151 of 188
City of Fairfield, California
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
131
Solano
Fairfield‐Animal
Other Suisun Control
Deposits Sewer District Authority
Assets:
Cash and investments 2,790,736$ 2,877,020$ 59,835$ Receivables, net 20,636 3,952,930 32,406 Restricted cash and investments
Total Assets 2,811,372 6,829,950 92,241 Liabilities:
Accounts payable 968,235 2,698,547
Interest payable
Total Liabilities 968,235 2,698,547 ‐ Net Position:
Restricted for individuals,
organizations, and other
governments 1,843,137$ 4,131,403$ 92,241$
Packet Page 274 of 812Attachment 1 Page 152 of 188
132
Green
Valley Tri‐City/County Fairfield Housing
Open Space Regional Parks CFD and Community
Maintenance & Open Space Debt Development
District Group Service Corporation Total
854,289$ 79,376$ 4,135,323$ 50,000$ 10,846,579$ 2,610 240 21,322 4,030,144 20,699,058 20,699,058
856,899 79,616 24,855,703 50,000 35,575,781 11,272,950 14,939,732
791,655 791,655
‐ ‐ 12,064,605 ‐ 15,731,387 856,899$ 79,616$ 12,791,098$ 50,000$ 19,844,394$
Packet Page 275 of 812Attachment 1 Page 153 of 188
City of Fairfield, California
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2022
133
Solano
Fairfield‐Animal
Other Suisun Control
Deposits Sewer District Authority
Additions:
Collection of other fees 4,683,975$
Collection for other governments 25,608,777$ 785,827$ Contributions frrom members
Special assessments
Investment income 18,343 164
Net decrease in fair value of investments (141,581) (570) Bond proceeds and premium
Total Additions 4,560,737 25,608,777 785,421 Deductions:
Distribution of other fees 4,573,574
Distributions to other governments 24,662,267
Program and administrative expenses 703,252 777,988 Interest expense
Principal payment on bonds
Developer reimbursements
Total deductions 4,573,574 25,365,519 777,988
Change in Net Position (12,837) 243,258 7,433 Net Position ‐ Beginning of Year 1,855,974 3,888,145 84,808 Net Position ‐ End of the Year 1,843,137$ 4,131,403$ 92,241$ Packet Page 276 of 812Attachment 1 Page 154 of 188
134
Green
Valley Tri‐City/County Fairfield Housing
Open Space Regional Parks CFD and Community
Maintenance & Open Space Debt Development
District Group Service Corporation Total
50,000$ 4,733,975$
111,520$ 26,506,124
20,000$ 20,000
4,621,714$ 4,621,714
6,911 767 93,249 119,434 (30,983) (2,766) (209,373) (385,273) 38,696,657 38,696,657
87,448 18,001 43,202,247 50,000 74,312,631 4,573,574
24,662,267
16,766 2,500 1,113,407 2,613,913 3,998,451 3,998,451
715,000 715,000
33,205,677 33,205,677
16,766 2,500 39,032,535 ‐ 69,768,882 70,682 15,501 4,169,712 50,000 4,543,749 786,217 64,115 8,621,386 15,300,645 856,899$ 79,616$ 12,791,098$ 50,000$ 19,844,394$
Packet Page 277 of 812Attachment 1 Page 155 of 188
City of Fairfield, California
People and Places in the City
135
Packet Page 278 of 812Attachment 1 Page 156 of 188
City of Fairfield, California
Statistical Section
136
Contents Pages
Financial Trends
137 ‐ 150
Table 1 ‐ Net Position by Component Table 5 ‐ Changes in Fund Balances of Table 2 ‐ Changes in Net Position Governmental Funds Table 3 ‐ Governmental Activities Tax Revenues Table 6 ‐ Changes in Fund Balances of by Source General Fund
Table 4 ‐ Fund Balances of Governmental Funds
Revenue Capacity
151 ‐ 154
Table 7 ‐ Assessed Value and Estimated Table 9 ‐ Principal Property Taxpayers Actual Values of Taxable Property Table 10 ‐ Property Tax Levies and Collections Table 8 ‐ Property Tax Rates ‐ Direct and
Overlapping Governments
Debt Capacity
155 ‐ 162
Table 11 ‐ Ratio of Outstanding Debt by Type Table 14 ‐ Legal Debt Margin Information Table 12 ‐ Ratio of General Bonded Debt Table 15 ‐ Utility and Golf Debt Pledged Outstanding Revenue Coverage
Table 13 ‐ Direct and Overlapping
Governmental Activities Debt
Demographic and Economic Information
163 ‐ 164
Table 16 ‐ Demographic and Economic Statistics Table 17 ‐ Principal Employers Operating Information / Debt Continuing Disclosures
165 ‐ 167
Table 18 ‐ Full‐time Authorized City Government Table 20 ‐ Capital Asset Statistics by Function Employees by Function
Table 19 ‐ Operating Indicators by Function
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. They include:
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities. They include:
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs, as well as scheduled required by various debt covenants. They include:
This part of the City of Fairfield's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. In contrast to the Financial Section, the Statistical Section is not subject to independent audit.
These schedules contain trend information to help the reader understand how the government's financial performance and well‐being have changed over time. They include:
These schedules contain information to help the reader assess the government's most significant local revenue sources, property and sales taxes. They include:
Packet Page 279 of 812Attachment 1 Page 157 of 188
City of Fairfield, California
Net Position by Component
(accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 1
137
Table 1
2013 2014 2015 2016
Governmental activities
Net investment in capital assets 285,517,949$ 280,220,525$ 298,401,721$ 323,606,096$ Restricted 132,048,222 146,869,909 154,254,022 160,077,675 Unrestricted 30,080,451 61,781,934 (93,132,227) (72,416,045) Total governmental activities net position 447,646,622$ 488,872,368$ 359,523,516$ 411,267,726$ Business‐type activities
Net investment in capital assets 103,049,867$ 103,591,615$ 91,482,110$ 87,956,953$ Restricted 15,258,808 17,665,866 17,873,301 20,183,680 Unrestricted 15,742,945 7,985,138 18,186,209 22,603,302 Total business ‐type activities net position 134,051,620$ 129,242,619$ 127,541,620$ 130,743,935$ Primary Government
Net investment in capital assets 388,567,816$ 383,812,140$ 389,883,831$ 411,563,049$ Restricted 147,307,030 164,535,775 172,127,323 180,261,355 Unrestricted 45,823,396 69,767,072 (74,946,018) (49,812,743) Total primary government net position 581,698,242$ 618,114,987$ 487,065,136$ 542,011,661$ Source: City of Fairfield ACFR
71%
30%‐1%
Allocation of Net Position for Fiscal Year 2022
Capital Assets Restricted Other
Packet Page 280 of 812Attachment 1 Page 158 of 188
138
2017 2018 2019 2020 2021 2022
336,038,449$ 360,630,992$ 359,360,263$ 358,165,387$ 366,592,521$ 360,654,310$ 156,192,967 148,645,577 154,910,949 158,195,251 169,140,810 170,045,974 (53,391,259) (54,093,719) (50,809,831) (58,888,468) (64,667,857) (30,414,071) 438,840,157$ 455,182,850$ 463,461,381$ 457,472,170$ 471,065,474$ 500,286,213$ 88,831,165$ 86,660,214$ 93,642,762$ 96,888,502$ 102,238,253$ 103,717,574$ 21,830,966 22,923,098 24,014,320 25,682,136 27,055,244 28,583,286 20,817,996 20,468,352 20,721,546 20,356,963 22,656,747 24,387,130 131,480,127$ 130,051,664$ 138,378,628$ 142,927,601$ 151,950,244$ 156,687,990$ 424,869,614$ 447,291,206$ 453,003,025$ 455,053,889$ 468,830,774$ 464,371,884$ 178,023,933 171,568,675 178,925,269 183,877,387 196,196,054 198,629,260 (32,573,263) (33,625,367) (30,088,285) (38,531,505) (42,011,110) (6,026,941) 570,320,284$ 585,234,514$ 601,840,009$ 600,399,771$ 623,015,718$ 656,974,203$
‐
100
200
300
400
500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
389 384 390 412 425 447 453 455 469 464 MillionsNet Investment in Capital Assets Packet Page 281 of 812Attachment 1 Page 159 of 188
City of Fairfield, California
Changes in Net Position
(accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 2
139
2013 2014 2015 2016
Expenses
Governmental activities
Administration / Finance 4,164,505$ 4,547,124$ 8,679,900$ 8,705,876$ Police 31,468,951 33,325,087 34,286,700 36,088,243 Fire 13,859,734 14,682,630 15,698,833 16,180,164 Public works 32,999,762 30,816,138 31,541,207 32,278,130 Community development 2,561,302 2,170,508 11,905,248 12,520,002 Housing ‐ ‐ ‐ ‐ Parks and recreation 16,067,853 15,941,172 6,667,509 6,268,850 Redevelopment agency ‐ ‐ ‐ ‐ Interest on long‐term debt 5,974,448 1,489,123 2,345,601 2,326,068 107,096,555 102,971,782 111,124,998 114,367,333 Business ‐type activities
Water 29,403,078 38,597,177 32,968,445 31,351,507 North bay treatment plant 8,512,133 7,254,180 7,387,888 6,912,177 Transportation 12,914,244 12,417,380 12,260,948 12,177,417 Golf courses 6,182,070 6,200,252 6,651,196 5,100,140 Housing program 551,442 ‐ ‐ ‐ Police training center 676,720 708,255 777,911 809,537 58,239,687 65,177,244 60,046,388 56,350,778 165,336,242$ 168,149,026$ 171,171,386$ 170,718,111$ Program Revenues
Governmental activities:
Charges for services:
Public works 394,776$ 791,108$ 178,110$ 324,159$ Parks and recreation 2,048,988 1,997,949 2,095,614 2,179,879 Other activities 999,339 627,218 1,161,044 2,124,259 Operating grants and contributions 19,386,786 21,229,135 18,750,444 18,767,680 Capital grants and contributions 21,115,995 19,057,926 36,977,917 49,602,173 43,945,884 43,703,336 59,163,129 72,998,150 Business ‐type activities:
Charges for services:
Water 32,767,325 32,183,364 32,184,164 29,515,139 North bay treatment plant 11,359,519 7,613,251 7,341,059 8,556,271 Transportation 2,252,078 2,540,617 2,359,351 2,471,629 Golf courses 4,322,380 4,527,945 4,302,712 4,128,491 Housing program ‐ ‐ ‐ ‐ Police training center 119,379 122,357 143,236 ‐ Operating grants and contributions 7,075,949 7,829,261 7,947,485 7,563,921 Capital grants and contributions 5,177,512 273,674 1,738,732 4,423,996 63,074,142 55,090,469 56,016,739 56,659,447 107,020,026$ 98,793,805$ 115,179,868$ 129,657,597$ Source: City of Fairfield
Total governmental activities expenses
Total primary government expenses
Total governmental activities program revenues
Total business ‐type activities program revenues
Total primary government program revenues
Total business ‐type activities expenses
Packet Page 282 of 812Attachment 1 Page 160 of 188
140
2017 2018 2019 2020 2021 2022
8,874,847$ 11,123,403$ 11,900,667$ 14,703,518$ 12,927,151$ 14,392,640$ 38,768,415 43,433,870 45,359,400 50,289,152 53,147,611 48,046,571 17,813,313 20,977,657 23,299,548 24,774,955 27,799,367 26,677,805 29,144,358 41,671,584 42,510,868 44,225,785 48,656,594 42,785,178 13,244,813 13,611,124 14,714,798 16,295,692 6,774,428 5,738,204 ‐ ‐ ‐ ‐ 15,375,486 15,575,305 6,681,502 7,379,270 8,356,798 8,109,541 6,026,185 6,956,929 ‐ ‐ ‐ ‐ ‐ ‐ 1,687,043 1,938,861 1,902,206 1,523,848 1,292,831 1,195,638 116,214,291 140,135,769 148,044,285 159,922,491 171,999,653 161,368,270 31,508,356 33,716,744 34,267,635 35,441,283 36,838,063 33,665,670 7,243,588 8,363,268 9,072,882 9,480,780 9,537,620 9,321,685 11,851,331 12,421,497 13,185,265 13,687,532 12,635,411 15,362,231 4,762,749 4,807,394 5,112,961 4,786,710 4,411,497 5,947,716 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 55,366,024 59,308,903 61,638,743 63,396,305 63,422,591 64,297,302 171,580,315$ 199,444,672$ 209,683,028$ 223,318,796$ 235,422,244$ 225,665,572$ 339,664$ 200,110$ 204,547$ 195,505$ 242,963$ 490,823$ 2,145,843 1,988,401 2,331,329 1,175,693 307,141 1,129,383 2,572,188 2,626,035 4,159,175 1,203,256 4,188,114 4,758,746 19,264,298 17,960,671 16,794,639 18,289,154 26,288,851 28,908,570 29,224,595 42,448,472 25,903,360 24,418,466 41,959,476 26,947,824 53,546,588 65,223,689 49,393,050 45,282,074 72,986,545 62,235,346 29,357,594 31,535,899 32,345,646 35,230,082 37,246,220 37,313,663 10,216,274 8,262,242 11,112,017 10,427,655 12,097,768 9,968,690 2,542,027 2,454,050 2,250,751 1,648,109 494,090 866,972 4,068,853 4,388,981 4,314,330 4,184,787 6,377,792 6,290,695 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,324,379 8,901,898 9,441,298 9,024,408 10,996,083 11,434,255 3,267,958 2,982,474 8,560,072 3,382,582 7,724,142 4,506,789 57,777,085 58,525,544 68,024,114 63,897,623 74,936,095 70,381,064 111,323,673$ 123,749,233$ 117,417,164$ 109,179,697$ 147,922,640$ 132,616,410$
Packet Page 283 of 812Attachment 1 Page 161 of 188
City of Fairfield, California
Changes in Net Position
(accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 2
141
Table 2
2013 2014 2015 2016
Net (expense)/revenue
Governmental activities (63,150,671)$ (59,268,446)$ (51,961,869)$ (41,369,183)$ Business‐type activities 4,834,455 (10,086,775) (4,029,649) 308,669 (58,316,216)$ (69,355,221)$ (55,991,518)$ (41,060,514)$ General Revenues / Other
Governmental activities
Taxes
Property taxes 27,299,372$ 23,062,490$ 26,567,981$ 28,358,047$ Sales and transaction taxes 19,001,983 35,407,196 36,972,165 41,837,970 Other taxes 11,671,813 12,409,833 12,772,647 13,625,678 Intergovernmental 193,149 231,977 228,683 45,144 Investment earnings 1,496,472 2,295,425 1,847,878 2,793,300 Net decrease in fair value of investments ‐ ‐ ‐ ‐ Miscellaneous 3,925,092 4,707,347 5,247,355 6,565,223 Gain on sale of property 4,482,870 1,749,844 ‐ ‐ Extraordinary loss‐dissolution RDA (45,913,578) 16,336,659 ‐ ‐ Transfers (242,995) 650,499 (16,344,975) (750,994) Total governmental activities 21,914,178 96,851,270 67,291,734 92,474,368 Business‐type activities
Investment earnings 226,298 694,248 629,860 1,044,843 Net decrease in fair value of investments ‐ ‐ ‐ ‐ Miscellaneous 59,643 103,169 135,144 113,055 Transfers 242,995 (650,499) 16,344,975 750,994 Total business‐type activities 528,936 146,918 17,109,979 1,908,892 Total primary government 22,443,114$ 96,998,188$ 84,401,713$ 94,383,260$ Change in Net Position
Governmental activities (41,236,493)$ 37,582,824$ 15,329,865$ 51,105,185$ Business‐type activities 5,363,391 (9,939,857) 13,080,330 2,217,561 Total primary government (35,873,102)$ 27,642,967$ 28,410,195$ 53,322,746$ Source: City of Fairfield
Total primary government net expense
33%
19%
26%
8%14%
Use of Funds for FY 2022 Public safety
Utilities
Public works
Development/Recreation
Other
Packet Page 284 of 812Attachment 1 Page 162 of 188
142
2017 2018 2019 2020 2021 2022
(62,667,703)$ (74,912,080)$ (98,651,235)$ (114,640,417)$ (99,013,108)$ (99,132,924)$ 2,411,061 (783,359) 6,385,371 501,318 11,513,504 6,083,762 (60,256,642)$ (75,695,439)$ (92,265,864)$ (114,139,099)$ (87,499,604)$ (93,049,162)$ 29,209,321$ 31,333,350$ 34,085,030$ 35,310,874$ 36,853,122$ 36,348,069$ 39,688,255 41,211,801 43,059,220 42,874,589 49,589,708 56,179,400 14,119,010 15,113,195 15,071,640 14,553,246 14,825,096 15,873,960 234,269 246,085 242,683 279,957 273,811 17,018,236 1,057,577 682,405 7,910,032 8,831,408 2,407,335 2,886,075 ‐ ‐ ‐ ‐ ‐ (9,998,218) 6,678,679 7,394,017 6,605,782 6,646,359 8,118,282 9,681,503 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (495,159) (608,027) (422,979) (76,244) 356,265 364,638 90,491,952 95,372,826 106,551,408 108,420,189 112,423,619 128,353,663 182,338 551,922 2,837,620 3,627,905 263,105 915,002 ‐ ‐ ‐ ‐ ‐ (3,878,019) 1,590,513 524,787 438,556 369,792 946,058 1,981,639 495,159 608,027 422,979 76,244 (356,265) (364,638) 2,268,010 1,684,736 3,699,155 4,073,941 852,898 (1,346,016) 92,759,962$ 97,057,562$ 110,250,563$ 112,494,130$ 113,276,517$ 127,007,647$ 27,824,249$ 20,460,746$ 7,900,173$ (6,220,228)$ 13,410,511$ 29,220,739$ 4,679,071 901,377 10,084,526 4,575,259 12,366,402 4,737,746 32,503,320$ 21,362,123$ 17,984,699$ (1,644,969)$ 25,776,913$ 33,958,485$
42%
23%
22%
13%
Source of Funds for FY 2022 Taxes
Charges for Services
Grants
Other
Packet Page 285 of 812Attachment 1 Page 163 of 188
City of Fairfield, California
Governmental Activities Tax Revenues by Source
(accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 3
143
Table 3
Fiscal Property Sales/Transaction Other
Year Taxes Taxes Taxes* Total
2013 27,299,372$ 19,001,983$ 11,671,813$ 57,973,168$ 2014 23,062,490 35,407,196 x 12,409,833 70,879,519 2015 26,567,981 36,972,165 x 12,772,647 76,312,793 2016 28,358,047 41,837,970 x 13,625,678 83,821,695 2017 29,209,321 39,688,255 x 14,119,010 83,016,586 2018 31,333,350 41,211,801 x 15,113,195 87,658,346 2019 34,085,030 43,059,220 x 15,071,640 92,215,890 2020 35,310,874 42,874,589 x 14,553,246 92,738,709 2021 36,853,122 49,589,708 x 14,825,096 101,267,926 2022 36,348,069 56,179,400 x 15,873,960 108,401,429 Source: City of Fairfield
*
x In April, 2013, Measure P, a 1% transaction and use tax was enacted. In November 2016, the transaction and use tax was extended for an additonal 15 years to 2033.
Other taxes consist of franchise tax, utility user tax, transient occupancy tax, business license tax, and other taxes.
$0
$50
$100
$150
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$27 $23 $27 $28 $29 $31 $34 $35 $37 $36
$19 $35 $37 $42 $40 $41 $43 $43 $50 $56
$12
$12 $13 $14 $14 $15 $15 $15 $15 $16
MillionsProperty Taxes Sales/Transaction Taxes Other Taxes
Packet Page 286 of 812Attachment 1 Page 164 of 188
City of Fairfield, California
People and Places in the City
144
Packet Page 287 of 812Attachment 1 Page 165 of 188
City of Fairfield, California
Fund Balances of Governmental Funds
(modified accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 4
145
able 4
2013 2014 2015 2016
General Fund
Reserved
Unreserved
Nonspendable 6,110$
Restricted
Committed
Assigned 6,229,328 2,024,541$ 4,418,223$ Unassigned 14,818,731$ 24,255,237 19,874,728 20,876,012 Total general fund 14,818,731$ 30,490,675$ 21,899,269$ 25,294,235$ All other governmental funds
Reserved
Unreserved, reported in:
Debt Service Funds
Capital Project Funds
Nonspendable 335,375$ 335,375$ 335,375$ 335,375$ Restricted 113,234,546 125,960,121 136,082,371 139,523,737 Committed 9,395,169 10,764,506 9,860,803 10,222,340 Assigned 3,145,580 3,051,394 4,786,139 12,902,068 Unassigned
Total all other governmental funds 126,110,670$ 140,111,396$ 151,064,688$ 162,983,520$ Source: City of Fairfield
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$126
$140
$151
$163 $172 $173
$158 $160 $168 $170 MillionsOther Governmental Funds Restricted Fund Balances Packet Page 288 of 812Attachment 1 Page 166 of 188
146
2017 2018 2019 2020 2021 2022
53,801$ 22,000$ 12,000$
5,286,612 5,435,139 6,841,794 5,882,751$ 7,266,947 7,725,365 3,727,306 3,623,465 4,416,397$ 4,415,269$ 6,278,715
21,228,639 23,125,111 28,822,295 35,937,493 41,714,193 47,300,261 25,645,036$ 27,540,380$ 47,708,370$ 49,119,997$ 52,295,293$ 56,806,477$ 335,375$ 335,375$ 335,375$ 335,375$ 335,375$ 335,375$ 140,413,466 132,634,714 138,404,751 141,369,068 147,846,982 148,030,707 11,174,449 11,020,383 12,064,326 11,979,293 16,095,711 16,079,866 19,938,002 28,600,148 7,652,343 5,822,196 3,925,093 6,019,481 171,861,292$ 172,590,620$ 158,456,795$ 159,505,932$ 168,203,161$ 170,465,429$
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$15
$24
$20 $21 $21 $23
$29
$36
$42
$47 MillionsGeneral Fund Available Fund Balance
Packet Page 289 of 812Attachment 1 Page 167 of 188
City of Fairfield, California
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 5
147
2013 2014 2015 2016
Revenues
Taxes 60,030,327$ 73,342,642$ 80,562,332$ 86,914,959$ Development fees 6,281,986 7,268,473 9,212,911 10,577,539 Special assessments levied 4,523,640 4,579,329 4,621,416 4,973,363 Licenses, permits and fines 2,604,002 3,409,222 2,793,778 3,098,394 Developers' contribution 813,575 991,869 408,322 297,899 Intergovernmental 23,628,437 23,406,950 28,599,137 44,044,033 Charges for services 3,304,095 3,396,573 4,015,173 5,534,166 Investment income 449,522 1,001,547 1,182,876 1,583,153 Net decrease in fair value of investments
Miscellaneous 3,418,553 2,906,263 2,656,733 2,783,022 Total revenues 105,054,137 120,302,868 134,052,678 159,806,528 Expenditures
Administration / Finance 2,520,854 2,890,734 3,610,521 4,006,001 Police 31,522,803 31,949,831 33,113,818 35,896,094 Fire 13,923,984 14,009,112 15,170,426 16,287,240 Public works 9,737,258 10,955,173 12,618,878 13,544,353 Parks and recreation 15,189,021 15,260,442 5,589,069 5,567,133 Community development 1,881,824 2,141,664 11,592,701 12,608,989 Housing services
Non‐departmental 1,124,126 1,496,102 4,634,486 4,801,029 Intergovernmental
Capital outlay 19,397,730 14,195,159 21,694,966 41,253,983 Debt service:
Principal 736,890 806,890 891,890 1,906,890 Interest 2,360,629 2,347,188 2,328,147 1,717,155 Fiscal agent fees 29,488 20,559 21,184 18,289 Special assessment payments
Issuance costs 228,304 Total expenditures 98,424,607 96,072,854 111,266,086 137,835,460 Excess (deficiency) of revenues
over (under) expenditures 6,629,530 24,230,014 22,786,592 21,971,068 Other financing sources (uses)
Issuance of debt
Issuance of refunding 21,835,000 Payment to refunded bond escrow (21,174,417) Bond premium
Bond discount 21,835,000 (426,301) Gain on sale of property (21,174,417) Leases (as lessee)
Transfers in 10,905,644 10,319,105 13,538,771 14,894,347 Transfers out (13,169,951) (12,550,240) (33,963,478) (21,785,897) Total other financing sources (uses) (2,264,307) (2,231,135) (19,764,124) (6,657,268) Extraordinary items:
(17,833,886) 36,245,366
Net change in fund balances (13,468,663)$ 58,244,245$ 3,022,468$ 15,313,800$ Debt service as a percentage of
noncapital expenditures 3.32% 3.48% 3.27% 3.39%
Source: City of Fairfield
Extraordinary gain (loss)‐‐dissolution of
Fairfield Redevelopment Agency
Packet Page 290 of 812Attachment 1 Page 168 of 188
148
2017 2018 2019 2020 2021 2022
86,186,557$ 90,354,326$ 95,841,255$ 95,416,626$ 109,700,418$ 113,026,766$ 6,523,669 4,942,419 7,481,437 4,647,913 14,321,328 7,251,588 5,441,183 5,995,658 6,813,858 7,481,060 7,949,569 9,009,670 2,946,531 2,734,897 3,479,535 2,920,083 4,078,924 3,934,657 257,432 946,949 1,095,092 51,094 441,725 2,365,429 31,940,671 33,231,114 21,692,133 21,225,584 25,610,759 41,689,580 6,144,376 7,174,139 6,911,323 6,171,143 6,310,413 7,859,790 437,782 1,067,308 5,200,842 6,189,959 1,938,770 2,057,367 (7,764,527)
2,617,799 3,824,530 3,492,633 2,159,173 3,231,021 5,155,918 142,496,000 150,271,340 152,008,108 146,262,635 173,582,927 184,586,238 5,246,013 4,780,076 5,418,985 6,990,490 5,565,649 6,511,212 37,583,206 38,940,548 41,873,962 44,612,479 48,131,554 50,204,273 17,560,739 18,911,666 21,580,359 21,787,988 24,990,675 27,190,361 14,042,213 15,626,230 17,290,319 17,726,511 19,469,714 20,521,893 6,053,818 6,092,792 7,868,406 6,734,063 5,126,947 6,575,058 13,451,185 12,996,451 13,892,385 14,968,531 5,467,073 5,601,354 15,376,628 16,104,074
3,817,702 5,049,006 15,298,522 8,737,622 9,882,129 9,111,044 30,175,326 40,612,587 18,610,215 18,997,645 23,819,066 18,590,497 1,686,890 1,721,890 2,051,890 2,106,890 2,146,890 2,335,991 1,941,846 1,906,025 1,570,807 1,296,692 1,250,362 1,200,469 20,438 21,125 21,429 18,863 18,406 17,874 268,614
131,579,376 146,658,396 145,745,893 143,977,774 161,245,093 163,964,100 10,916,624 3,612,944 6,262,215 2,284,861 12,337,834 20,622,138 15,325,000
(15,041,320)
1,248,741
16,865,682 22,025,622 35,540,495 11,180,012 14,219,021 31,438,580 (18,553,733) (21,184,374) (36,052,225) (11,004,109) (14,820,235) (46,536,007) (1,688,051) 841,248 (228,050) 175,903 (601,214) (13,848,686) 9,228,573$ 4,454,192$ 6,034,165$ 2,460,764$ 11,736,620$ 6,773,452$
3.27% 2.99% 2.85% 2.72% 2.47% 2.16%
Packet Page 291 of 812Attachment 1 Page 169 of 188
City of Fairfield, California
Changes in Fund Balances of General Fund
(modified accrual basis of accounting)
By Fiscal Year ‐ Last Ten Fiscal Years
Table 6
149
2013 2014 2015 2016
Revenues
Taxes 57,341,056$ 70,404,120$ 75,831,210$ 83,549,929$ Licenses, permits and fines 2,604,002 3,409,222 2,793,778 3,098,394 Intergovernmental 408,014 372,257 1,033,614 541,554 Charges for services 3,304,095 3,396,573 4,015,173 5,534,166 Investment income 70,073 275,112 322,062 352,476 Net decrease in fair value of investments
Miscellaneous 1,756,428 1,417,805 1,663,350 1,827,202 Total revenues 65,483,668 79,275,089 85,659,187 94,903,721 Expenditures
Administration / Finance 2,303,628 2,573,262 3,427,198 3,800,333 Police 29,122,744 30,127,434 31,783,496 34,828,205 Fire 13,699,836 13,851,664 15,165,818 16,091,862 Public works 6,060,981 6,855,746 8,579,280 9,380,745 Parks and recreation 4,108,261 4,117,466 4,318,303 4,908,617 Community development 1,807,860 2,076,496 2,538,008 2,619,544 Non ‐departmental* 1,124,126 1,496,102 4,634,486 4,801,029 Debt Service:
Principal Retirement
Interest
Total expenditures* 58,227,436 61,098,170 70,446,589 76,430,335 Excess (deficiency) of revenues
over (under) expenditures 7,256,232 18,176,919 15,212,598 18,473,386 Other financing sources (uses)
Leases (as lessee)
Transfers in 1,980,827 339,694 835,982 170,632 Transfers out (4,921,577) (7,344,069) (24,639,986) (15,249,052) Total other financing sources (uses) (2,940,750) (7,004,375) (23,804,004) (15,078,420) Net change in fund balances 4,315,482$ 11,172,544$ (8,591,406)$ 3,394,966$ Source: City of Fairfield
*Includes one‐time payment of $10,000,000, $3,000,000 & $4,000,000 towards the Safety Plan's unfunded liability in FY19, FY20 & FY21, respectively.
$0
$50
$100
$150
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$65 $79 $86 $95 $94 $101 $107 $106 $116 $122
MillionsTotal General Fund Revenues
Packet Page 292 of 812Attachment 1 Page 170 of 188
150
2017 2018 2019 2020 2021 2022
82,907,862$ 87,533,691$ 92,089,879$ 92,835,821$ 101,459,155$ 108,714,444$ 2,946,531 2,734,897 3,479,535 2,920,083 4,078,924 3,934,657 457,231 459,490 467,962 605,418 573,360 696,958 6,144,376 7,174,139 6,911,323 6,171,143 6,310,413 7,859,790 97,577 222,858 2,009,675 2,328,286 1,348,034 827,087 (3,658,668)
1,790,673 2,461,853 2,539,420 1,483,304 1,758,025 3,734,139 94,344,250 100,586,928 107,497,794 106,344,055 115,527,911 122,108,407 5,046,385 4,561,503 5,054,525 6,329,656 5,216,172 6,126,829 36,606,605 38,083,461 41,411,882 44,173,273 47,189,271 49,350,555 17,190,449 18,225,615 20,741,762 21,575,867 24,600,363 26,774,174 9,758,856 10,717,240 11,878,134 11,878,627 13,262,014 14,608,124 5,366,916 5,240,660 5,893,668 6,121,707 4,719,771 5,861,144 2,937,136 2,739,788 3,422,777 3,314,942 4,108,255 4,780,518 3,817,702 5,049,006 15,298,522 8,737,622 9,882,129 9,111,044 90,519
2,554
80,724,049 84,617,273 103,701,270 102,131,694 108,977,975 116,705,461 13,620,201 15,969,655 3,796,524 4,212,361 6,549,936 5,402,946 618,455
323,857 255,780 22,257,998 811,291 1,248,863 18,634,072 (13,593,257) (14,330,091) (5,886,532) (3,612,025) (4,623,503) (20,144,289) (13,269,400) (14,074,311) 16,371,466 (2,800,734) (3,374,640) (891,762) 350,801$ 1,895,344$ 20,167,990$ 1,411,627$ 3,175,296$ 4,511,184$
$0
$50
$100
$150
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$58 $61 $70 $76 $81 $85
$104*$102*$109*$117
MillionsTotal General Fund Expenses
Packet Page 293 of 812Attachment 1 Page 171 of 188
City of Fairfield, California Assessed Value and Estimated Actual Value of Taxable Property (accrual basis of accounting) By Fiscal Year ‐ Last Ten Fiscal Years Table 7 151 Table 7 Less: Total Taxable DirectTax Exempt TaxReal Property Rate20137,058,918,343$ 3,022,247,547$ 520,592,272$ 582,950,764$ 10,018,807,398$ 0.0070000 20147,901,820,577 3,044,828,732 528,590,473 609,860,999 10,865,378,783 0.0071000 20158,450,788,958 3,184,400,080 550,589,799 593,971,089 11,591,807,748 0.0065000 20169,051,091,056 3,337,346,549 539,773,774 604,822,232 12,323,389,147 0.0047000 20179,735,211,041 3,537,335,144 558,828,437 569,234,030 13,262,140,592 0.0045000 201810,423,395,576 3,708,864,371 565,508,865 550,237,826 14,147,530,986 0.0045000 201911,098,766,161 3,916,582,215 621,450,392 633,312,031 15,003,486,737 0.0045000 202011,678,069,722 4,152,769,066 603,016,099 455,411,064 15,978,443,823 0.0030000 202112,261,971,994 4,215,852,029 585,390,783 916,252,848 16,146,961,958 0.0023000 202213,061,441,890 4,383,202,165 676,451,826 347,579,642 17,773,516,239 0.0023000 Source: Solano County Assessor Office and the City of FairfieldResidential PropertyCommercial PropertyUnsecured PropertyFiscal YearAssessed Value $8 $13 $182013 2014 2015 2016 2017 2018 2019 2020 2021 2022$10 $11 $12 $12 $13 $14 $15 $16 $16 $18 BillionsProperty Assessed ValuesPacket Page 294 of 812Attachment 1 Page 172 of 188
City of Fairfield, California Property Tax Rates ‐ Direct And Overlapping Governments By Fiscal Year ‐ Last Ten Fiscal Years Table 8 152 Total School Special Total Direct &Fiscal City Debt County Debt District Debt OverlappingYear Rate Rate Rate Rate Rates20130.00650 1.00000 0.07607 0.02000 1.1025720140.00470 1.00000 0.07112 0.02000 1.0958220150.00450 1.00000 0.08848 0.02000 1.1129820160.00450 1.00000 0.07677 0.02000 1.1012720170.00450 1.00000 0.13800 0.02000 1.1625020180.00450 1.00000 0.12026 0.02000 1.1447620190.00450 1.00000 0.15266 0.02000 1.1771620200.00300 1.00000 0.09469 0.02000 1.1176920210.00230 1.00000 0.10138 0.02000 1.1236820220.00230 1.00000 0.11154 0.02000 1.13384Source: Solano County Auditor‐Controller's OfficeOverlapping Rates 1.06%1.08%1.10%1.12%1.14%1.16%1.18%2013 2014 2015 2016 2017 2018 2019 2020 2021 20221.10%1.10%1.11%1.10%1.16%1.14%1.18%1.12%1.12%1.13%Property Tax RatesPacket Page 295 of 812Attachment 1 Page 173 of 188
City of Fairfield, California
Principal Property Taxpayers
June 30, 2022
Table 9
153
Table 11
%%
Total Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Anheuser‐Busch Inc 311,606,081$ 11.92%
Star‐West Solano LLC 197,025,414 21.21%
CSCDA Commuity Improvement Authority 109,417,007 30.67% Gateway 80 Owner LP 105,117,852 40.65%
Meyer Cookware Industries Inc 85,531,946 50.53% Ball Metal Beverage Corporation 71,896,204 6 0.44% 36,191,035$ 30.36% Jelly Belly Candy Company 67,649,114 70.42% PW Fund A LP 66,336,005 80.41%
JDM 111 2600 Napa LLC 66,165,590 90.41%
Ardagh Metal Beverage USA Inc 65,050,639 10 0.40% US Real Estate Limited Partnership 43,474,883 10.43% Household Products Manufacturing 43,168,263 20.43% The Pointe LP 27,631,876 40.28%
Park Crossing Investors 26,000,000 50.26%
National Can 25,333,938 60.25%
LBM Partnership LP 24,544,076 70.24%
Travis Housing Limited Partnership 22,945,901 80.23% West Coast Homebuilders 19,048,748 90.19%
KMF Fairfield 16,994,151 10 0.17%
Total Taxpayers Assessed Value 1,145,795,852 7.06% 285,332,871 2.84% Total City Assessed Value 16,264,381,248$ 100.00% 10,018,807,398$ 100.00% 2022 2013
$0
$100
$200
$300
$400 $312
$197
$109 $105 $86 $72 $68 $66 $66 $65MillionsTop Ten Property Taxpayers in 2022 Packet Page 296 of 812Attachment 1 Page 174 of 188
City of Fairfield, California
Property Tax Levies and Collections
By Fiscal Year ‐ Last Ten Fiscal Years
Table 10
154
Table 12
Collections
Ended Levy for Subsequent
December 31 Fiscal Year Amount % of Levy Years Amount % of Levy 2013 27,299,372$ 27,299,372$ 100%‐ 27,299,372$ 100% 2014 23,062,490 23,062,490 100%‐ 23,062,490 100% 2015 26,567,981 26,567,981 100%‐ 26,567,981 100% 2016 28,358,047 28,358,047 100%‐ 28,358,047 100% 2017 29,209,321 29,209,321 100%‐ 29,209,321 100% 2018 31,333,350 31,333,350 100%‐ 31,333,350 100% 2019 34,085,030 34,085,030 100%‐ 34,085,030 100% 2020 35,310,874 35,310,874 100%‐ 35,310,874 100% 2021 36,853,122 36,853,122 100%‐ 36,853,122 100% 2022 36,348,069 36,348,069 100%‐ 36,348,069 100% Source: Solano County Auditor Controller's Office
Total Collections to DateAmount Collected
In addition to the City's property tax levies for voter ‐approved debt, Solano County levies property taxes limited to $1 per $100 of assessed valuation for county,city, school and special district operating expenses. This additional property tax levy is distributed to the different governmental agencies under the State mandated alternate method of apportioning taxes (commonly referred to as the "Teeter Plan") whereby all local agencies, including cities, receive from the county 100% of their respective shares of the amount of ad valorem taxes levied, without regard to the actual collection of the taxes levied. This method was placed ineffect bySolano Countyin the1965‐66 taxyear andremains ineffectunless the County Board of Supervisors orders its discontinuance. $‐
$5
$10
$15
$20
$25
$30
$35
$40
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$27
$23
$27 $28 $29 $31
$34 $35 $37 $36 MillionsProperty Tax Levies and Collections Packet Page 297 of 812Attachment 1 Page 175 of 188
City of Fairfield, California Ratios of Outstanding Debt by Type By Fiscal Year ‐ Last Ten Fiscal Years Table 11 155 Table 13 General Pension Long Term Utility‐Recreational Long Term Total PercentageFiscal Obligation Obligation Notes Water Revenue Notes Primary of Personal PerYear Bonds Bonds* Payable Bonds* Bonds* Payable Government Income Capita20139,862,468$ 36,135,000$ 2,486,066$ 107,611,697$ 7,795,000$ 163,890,231$ 3.98% 1,603 20149,440,578 35,750,000 2,234,010 102,956,697 6,950,000 157,331,285 3.40% 1,516 20159,018,688 35,280,000 1,978,747 88,922,328 6,287,677 5,370,000$ 146,857,440 3.11% 1,439 20168,596,798 34,393,699 1,720,288 88,428,499 5,345,045 2,695,000 141,179,329 2.98% 1,322 20178,174,908 33,157,119 1,458,454 88,439,110 4,366,157 135,595,748 2.67% 1,253 20187,753,018 31,871,329 1,193,251 82,867,903 3,345,834 127,031,335 2.37% 1,188 20197,331,128 32,265,539 924,623 77,201,696 2,284,074 120,007,060 2.09% 1,093 20206,909,238 30,605,170 652,539 71,315,489 1,854,193 111,272,436 1.84% 951 20216,487,348 28,904,801 376,889 67,310,614 1,408,774 104,488,426 1.65% 885 20226,065,458 27,144,432 119,155 63,435,526 952,996 97,717,567 1.39% 815 Source: City of Fairfield* Outstanding debt amounts include unamortized bond discounts and premiums. See the notes of the financial statements for more information on debt.Business‐Type ActivitiesGovernmental Activities 6%28%1%65%City Debt Outstanding for Fiscal Year 2022General ObligationPensionOtherUtilityPacket Page 298 of 812Attachment 1 Page 176 of 188
City of Fairfield, California Ratios of General Bonded Debt Outstanding By Fiscal Year ‐ Last Ten Fiscal Years Table 12 156 Table 14 Percentage ofEstimatedGeneral Pension Less: Amounts Total Actual TaxableFiscal Obligation Obligation Available in Debt Net Bonded Value of PerYear Bonds Bonds Total Service Fund Debt Property Capita20139,862,468$ 36,135,000$ 45,997,468$ 4,228,836$ 41,768,632$ 0.42% 38620149,440,578 35,750,000 45,190,578 3,400,917 41,789,661 0.38% 38220159,018,688 35,280,000 44,298,688 5,215,588 39,083,100 0.34% 35220168,596,798 34,393,699 42,990,497 6,834,676 36,155,821 0.29% 32120178,174,908 33,157,119 41,332,027 719,195 40,612,832 0.31% 35620187,753,018 31,871,329 39,624,347 910,820 38,713,527 0.27% 33320197,331,128 32,265,539 39,596,667 901,478 38,695,189 0.26% 33020206,909,238 30,605,170 37,514,408 1,230,337 36,284,071 0.23% 31020216,487,348 28,904,801 35,392,149 1,176,132 34,216,017 0.21% 29020226,065,458 27,144,432 33,209,890 1,138,281 32,071,609 0.18% 267Source: City of FairfieldGeneral Bonded Debt Outstanding $0$200$4002013 2014 2015 2016 2017 2018 2019 2020 2021 2022$386$382$352$321$356$333$330$310$290$267Per Capita General Bonded DebtPacket Page 299 of 812Attachment 1 Page 177 of 188
City of Fairfield, California
Direct and Overlapping Governmental Activities Debt
June 30, 2022
Table 13
157
Share of
%Outstanding Overlapping
2021/22 Total Assessed Valuation: 17,773,516,239$ Applicable (1)Debt 6/30/22 Debt Direct and Overlapping Tax and Assessment Debt:
Solano County Community College District 26.672% 351,971,139$ 93,877,742$ Fairfield‐Suisun Unified School District 77.216% 260,305,000 200,997,109 Fairfield‐Suisun Unified School District Community Facilities District #5 85.401% 12,118,626 10,349,428 Fairfield‐Suisun Unified School District Community Facilities District #6 100% 822,449 822,449 Travis Unified School District Community Facilities District No. 2 100% 16,380,000 16,380,000 Fairfield Municipal Park Facilities District, I.D. No. 1 100% 920,000 920,000 City of Fairfield Zone of Benefit Obligations 100% 6,065,458 6,065,458 City of Fairfield Community Facilities District No. 3 100% 10,910,000 10,910,000 City of Fairfield Community Facilities District No. 2007‐1 100% 14,480,000 14,480,000 City of Fairfield Community Facilities District No. 2016‐1 I.A. A 100% 3,690,000 3,690,000 City of Fairfield Community Facilities District No. 2016‐1 I.A. B 100% 19,800,000 19,800,000 City of Fairfield Community Facilities District No. 2016‐1 I.A. C 100% 22,880,000 22,880,000 City of Fairfield Community Facilities District No. 2019‐1 I.A. 1 100% 27,110,000 27,110,000 California Statewide Communities Development Authority 1915 Act Bonds 100% 8,305,529 8,305,529 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 755,758,201$ 436,587,715$ Direct and Overlapping General Fund Debt:
Solano County General Fund Obligations 25.929% 81,685,000$ 21,180,104$ Solano County Pension Obligation Bonds 25.929% 13,360,000 3,464,114 Travis Unified School District General Fund Obligations 41.787% 16,047,394 6,705,725 Fairfield‐Suisun Unified School District Certificates of Participation 77.216% 6,414,600 4,953,098 City of Fairfield Pension Obligations 100% 27,144,432 27,144,432 City of Fairfield ‐ Long Term Notes Payable 100% 119,155 119,155 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT: 144,770,581 63,566,628 Overlapping Tax Increment Debt (Successor Agencies)100%13,055,000 13,055,000 Total Direct Debt 33,329,045
Total Overlapping Debt:479,880,298
Combined Total Debt (2)913,583,782$ 513,209,343$ (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non‐bonded capital lease obligations.
50%
34%
1%15%
Total Debt
Solano County School Districts
Successor Agency City of Fairfield
25%
47%
2%
26%
Share of Overlapping Debt
Solano County School Districts
Successor Agency City of Fairfield
Packet Page 300 of 812Attachment 1 Page 178 of 188
City of Fairfield, California
People and Places in the City
158
Packet Page 301 of 812Attachment 1 Page 179 of 188
City of Fairfield, California
Legal Debt Margin Information
By Fiscal Year ‐ Last Ten Fiscal Years
Table 14
159
Table 16
2013 2014 2015 2016
Net Assessed Value 10,018,807,398$ 10,865,378,783$ 11,591,807,748$ 12,323,389,147$ Debt Limit Percentage 15% 15% 15% 15%
Debt Limit 1,502,821,110 1,629,806,817 1,738,771,162 1,848,508,372 Net Amount of Bonded Debt
Applicable to Debt Limit
General Bonded Debt* 45,997,468 45,190,578 44,298,688 42,990,497 Legal Debt Margin 1,456,823,642$ 1,584,616,239$ 1,694,472,474$ 1,805,517,875$ Source: Solano County Auditor Controller's Office and the City of Fairfield * The GovernmentCode of the Stateof California provides for a legal debt limitof 15%of gross assessed valuation. By law,the general obligation debtsubject to the limitation may beoffset by amounts setaside for repaying general obligation bonds. This includes the City's General and Pension Obligation bonds.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$1.5 $1.6 $1.7 $1.8 $2.0 $2.1 $2.3 $2.4 $2.4
$2.7
BillionsDebt Limit
Packet Page 302 of 812Attachment 1 Page 180 of 188
160
Table 16
2017 2018 2019 2020 2021 2022
13,262,140,592$ 14,147,530,986$ 15,003,486,737$ 15,978,443,823$ 16,146,961,958$ 17,773,516,239$ 15% 15% 15% 15% 15% 15%
1,989,321,089 2,122,129,648 2,250,523,011 2,396,766,573 2,422,044,294 2,666,027,436 41,332,027 39,624,347 39,596,667 37,514,408 35,392,149 33,209,890 1,947,989,062$ 2,082,505,301$ 2,210,926,344$ 2,359,252,165$ 2,386,652,145$ 2,632,817,546$
$0
$10
$20
$30
$40
$50
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$46 $45 $44 $43 $41 $40 $40 $38 $35 $33
MillionsGeneral Bonded Debt
Packet Page 303 of 812Attachment 1 Page 181 of 188
City of Fairfield, California
Utility and Golf Debt Pledged Revenue Coverage
By Fiscal Year ‐ Last Ten Fiscal Years
Table 15
161
Net Available Revenues Debt Service
Fiscal
Year
including water
connection fee
excluding water
connection fee Principal Interest
including water
connection fee
excluding water
connection fee
2013 12,887,045$ 10,427,075$ 4,520,000$ 3,493,898$ 161% 130% 2014 12,082,285 9,273,348 4,655,000 3,264,085 153% 117% 2015 13,685,418 9,588,589 4,890,000 3,026,075 173% 121% 2016 13,010,658 10,239,483 3,110,000 2,355,417 238% 187% 2017 10,756,713 7,774,738 3,145,000 2,323,751 197% 142% 2018 10,902,160 8,798,176 5,360,000 1,827,947 152% 122% 2019 13,148,944 10,165,038 5,455,000 1,734,456 183% 141% 2020 13,608,970 11,840,567 5,675,000 1,516,256 189% 165% 2021 17,282,104 10,890,351 3,793,669 3,950,588 223% 141% 2022 17,481,795 14,249,506 3,663,880 4,083,576 226% 184% Note: Net Available Revenues for Water Utility includes Operating Revenues, Nonoperating Revenues less expenses (excluding depreciation and interest expense).
Source: City of Fairfield
Coverage
Utility‐Water Revenue Bonds
0%
50%
100%
150%
200%
250%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
161%153%173%
238%
197%
152%
183%189%
223%226%
Water Revenue Bonds Coverage Ratios ‐All Fees
Packet Page 304 of 812Attachment 1 Page 182 of 188
City of Fairfield, California
Utility and Golf Debt Pledged Revenue Coverage
By Fiscal Year ‐ Last Ten Fiscal Years
Table 15
162
Table 17 – Golf
Recreational Revenue (Golf) Bonds
Net Debt Service
Fiscal
Year
Available
Revenues Principal Interest Coverage
2013 1,163,779$ 980,000$ 304,385$ 91% 2014 1,183,637 845,000 280,175 105% 2015 1,284,065 880,000 249,900 114% 2016 1,479,799 910,000 214,100 132% 2017 1,065,552 945,000 177,000 95% 2018 1,196,996 985,000 138,400 107% 2019 1,355,931 1,025,000 98,200 121% 2020 707,798 415,000 69,400 146% 2021 1,334,899 430,000 54,381 276% 2022 772,899 440,000 40,513 161% Note: Net Available Revenues for Golf includes all Operating Revenues, Nonoperating Revenues, Transfers In, Advances less Operating Expenses and Nonoperating expense (excluding depreciation and interest expense).
Source: City of Fairfield
0%
50%
100%
150%
200%
250%
300%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
91%105%114%132%
95%107%121%146%
276%
161%
Golf Bonds Coverage Ratios
Packet Page 305 of 812Attachment 1 Page 183 of 188
City of Fairfield, California Demographic and Economic Statistics By Fiscal Year ‐ Last Ten Fiscal Years Table 16 163 Table 18 PerCapitaFiscal Personal Personal Median School UnemploymentYear Population Income Income Age Enrollment Rate2013108,107 4,116,498,346$ 38,078$ 31.7 27,271 9.7%2014109,320 4,630,139,280 42,354 33.7 27,040 6.8%2015111,125 4,723,812,625 42,509 33.0 26,871 5.9%2016112,637 4,738,976,501 42,073 34.0 26,913 5.3%2017114,157 5,080,443,128 44,504 34.0 26,941 5.0%2018116,156 5,360,715,556 46,151 34.0 26,526 4.2%2019117,149 5,753,890,284 49,116 34.8 26,866 3.9%2020116,981 6,043,706,384 51,664 34.8 26,784 13.6%2021118,005 6,313,857,525 53,505 34.8 26,138 7.8%2022119,897 7,036,515,136 58,688 35.0 25,918 4.0%Source:City of Fairfield `Fairfield‐Suisun and Travis Unified School DistrictsCalifornia Department of FinanceU.S. Dept. of Commerce Bureau of Economic Analysis 0%5%10%15%2013 2014 2015 2016 2017 2018 2019 2020 2021 202210%7%6%5%5%4%4%14%8%4%Unemployment RatePacket Page 306 of 812Attachment 1 Page 184 of 188
City of Fairfield, California Principal Employers Current Year and Nine Years Ago Table 17 164 Percentage of Percentage ofTotal City Total CityEmployerEmployeesRankEmploymentEmployeesRankEmploymentTravis Air Force Base 13,414 1 25% 14,353 129%County of Solano 2,633 2 5% 2,850 26%Fairfield‐Suisun Unified School District 2,213 3 4% 2,000 34%North Bay Medical Center 1,969 4 4% 1,115 42%Solano Community College 750 5 1% 650 51%Partnership Health 561 61%City of Fairfield 553 7 1% 502 61%Jelly Belly Candy Company 489 8 1% 461 81%Sutter Regional Medical Foundation 475 9 1% 475 71%Westamerica Bancorporation 418 10 1% 407 91%Pride Industries343 10 1%Source: City of Fairfield2022 2013able 19 Packet Page 307 of 812Attachment 1 Page 185 of 188
City of Fairfield, California Full‐time Authorized City Government Employees by Function By Fiscal Year ‐ Last Ten Fiscal Years As of June 30 Table 18 165 Table 20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022FunctionAdministration / Finance 53 49 50 52 52 54 58 64 64 73 Community development 12 12 12 21 21 21 23 24 27 27 Parks and recreation 30 30 32 21 22 22 22 23 24 26 Fire 62 63 63 65 71 71 69 69 73 79 Housing program 6 8 10 10 10 10 9 7 10 11 Police 183 184 192 192 192 194 191 198 198 202 Public works 80 89 90 95 95 102 112 113 116 117 Transportation 7 7 10 10 10 7 7 6 6 8 Water utility 68 68 68 68 68 67 67 67 67 67 Total 501 510 527 534 541 548 558 571 585 610 Source: City of Fairfield 400 500 600 7002013 2014 2015 2016 2017 2018 2019 2020 2021 2022501 510 527 534 541 548 558 571 585 610 Total Authorized Full‐Time Employees Packet Page 308 of 812Attachment 1 Page 186 of 188
City of Fairfield, California Operating Indicators by Function By Fiscal Year – Last Ten Fiscal Years As of June 30 Table 19 166 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022PolicePhysical arrests 4,756 4,419 4,721 5,022 4,621 4,775 4,620 3,604 3,578 3,701 Parking citations 1,238 1,733 1,557 1,736 1,831 2,098 1,620 2,918 2,340 1,419 FireNumber of emergency calls 10,585 10,975 11,704 12,493 12,582 12,735 13,459 14,020 14,133 15,773 Inspections 222 400 436 173 64 694 912 1,588 1,111 1,718 Public works:Street resurfacing (miles)‐ 27 31 34 35 25 30 8 33 25 Parks and recreationNumber of recreation classes 98 70 95 87 123 135 144 177 35 90 Number of facility rentals 8 8 8 8 8 8 8 8 7 7 Community developmentNumber of businesses 3,614 3,688 3,712 3,234 3,054 3,865 4,439 5,009 4,803 5,930 New commercial square footage 355,047 679,896 851,401 560,540 1,019,667 15,466 19,982 11,678 750,705 779,752 WaterNew connections 375 231 357 362 484 277 323 130 391 377 Average daily consumption (millions gallons) 17 11 16 14 14 15 15 16 17 16 TransportationTotal miles covered by bus system 1,728,032 1,760,423 1,758,453 1,811,452 1,869,950 1,877,780 1,943,461 1,725,451 1,322,050 1,430,711 Total passengers 1,049,232 1,077,492 1,070,654 1,027,427 992,616 963,958 883,122 678,475 304,107 355,878 Golf courses106,393 108,000 103,813 100,506 97,473 101,504 102,002 94,983 141,848 132,768 Sources: Various City DepartmentsGolf rounds played Packet Page 309 of 812Attachment 1 Page 187 of 188
City of Fairfield, California Capital Assets Statistics by Function By Fiscal Year – Last Ten Fiscal Years As of June 30 Table 20 167 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022PoliceStations 1 1 1 1 1 1 1 1 1 1 Patrol cars 94 106 119 127 130 99 102 103 101 113 FireFire stations 5 5 5 5 5 5 5 5 5 5 Public worksStreets (miles) 287 287 294 298 298 300 301 303 306 309 Streetlights 9,100 9,100 9,248 9,412 9,412 9,493 9,508 9,620 9,841 9,967 Traffic signals 101 101 101 101 101 104 104 105 107 107 Parks and recreationParks acreage 274 274 281 281 281 281 281 281 281 281 Parks 23 23 24 24 24 24 24 24 27 27 Golf courses 2 2 2 2 2 2 2 2 2 2 Tennis courts 8 8 8 8 8 8 8 8 10 5 Community centers 4 4 5 5 5 5 5 5 5 5 WaterWater mains (miles) 386 362 377 368 377 413 426 429 435 439 Fire hydrants 3,157 3,114 3,134 3,176 3,134 3,266 3,331 3,362 3,399 3,450 Maximum daily capacity 57 57 57 57 57 57 57 57 57 57 (millions of gallons)Transportation 47 48 48 48 48 48 48 48 48 42 Sources: Various City Departments.Note: No capital asset indicators are available for the General Government function.Number of buses Packet Page 310 of 812Attachment 1 Page 188 of 188
Federal Expenditures
Federal Grantor/Pass-Through Grantor/CFDA Grantor's to
Program Title Number Number Expenditures Subrecipients
U.S. Department of Housing and Urban Development
Direct Programs:
CDBG-Entitlement Grants Cluster:
Community Development Block Grant/Entitlement Grants 14.218 B-21-MC-06-0027 842,718$ 540,812$ Community Development Block Grant/Entitlement Grants 14.218 B-20-MC-06-0027 89,384 5,431 Community Development Block Grant/Entitlement Grants 14.218 B-19-MC-06-0027 340,307 306,509 Community Development Block Grant/Entitlement Grants 14.218 B-18-MC-06-0028 148,836 Community Development Block Grant/Entitlement Grants 14.218 Program Income 273,072 68,474 Covid-19 Community Development Block Grant 14.218 B20MW060027 174,604 126,731 Subtotal CDBG-Entitlement Grants Cluster 1,868,921 1,047,957 Housing Voucher Cluster:
Section 8 Housing Choice Vouchers 14.871 N/A 10,601,881 Subtotal Housing Voucher Cluster 10,601,881 -
Passed through the California Department of Housing and Community Development:
Home Investment Partnerships Program 14.239 Program Income 455,487 Subtotal HOME Investment Partnerships Program 455,487 - Total U.S. Department of Housing and Urban Development 12,926,289 1,047,957 U.S. Department of Transportation
Direct Programs:
Federal Transit Cluster:
Federal Transit Formula Grant 20.507 CA-2021-200-00 1,466,034 ARPA Federal Transit Formula Grant 20.507 CA-2022-072-00 2,603,130 Subtotal Federal Transit Cluster 4,069,164 -
Direct Programs:
Highway Planning and Construction Cluster:
Passed through the California Department of Transportation:
Highway Planning and Construction 20.205 ATPL-5132 (047)33,924 Subtotal Highway Planning and Construction Cluster 33,924 - Passed through the California Office of Traffic Safety:
Highway Safety Cluster:
State and Community Highway Safety 20.600 PT21154 18,547 State and Community Highway Safety 20.600 PT21169 126,702 Subtotal Highway Safety Cluster 145,249 -
Total U.S. Department of Transportation 4,248,337 -
U.S. Department of Homeland Security
Direct Programs:
Assistance to Firefighters Grant 97.044 EMW-2020-FG-14083 18,722 Staffing for Adequate Fire & Emergency Response 97.083 DHS-20-GPD-083-00-99 387,465 Total U.S. Department of Homeland Security 406,187 -
U.S. Department of Justice
Direct Programs:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2018-DJ-BX-0824 19,970 Total U.S. Department of Justice 19,970 -
U.S. Department of the Treasury
Direct Programs:
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 16,700,000 Passed through the California State Water Resources Control Board:
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 467,689 Total U.S. Department of Treasury 17,167,689 -
Total Federal Expenditures 34,768,472$ 1,047,957$
City of Fairfield, California
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2022
Draft 12-14-2022
Packet Page 311 of 812Attachment 2 Page 1 of 1
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 December 15, 2022
To the Honorable Mayor and Member of the City Council
Of the City of Fairfield
City of Fairfield, California
We have audited the financial statements of the governmental, business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (City) as of and for the year ended June 30, 2022, and have issued our report thereon dated December 15, 2022. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our letter dated April 18, 2022, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding a significant control deficiency during our audit in our 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 dated December 15, 2022.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Packet Page 312 of 812Attachment 3 Page 1 of 6
2 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Significant Risks Identified
As stated in our auditor’s report, professional standards require us to design our audit to provide reasonable assurance that the financial statements are free of material misstatement whether caused by fraud or error. In designing our audit procedures, professional standards require us to evaluate the financial statements and assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to misstatements, and thereby require special audit considerations, are designated as “significant risks”. We have identified the following as significant risks.
•Management Override of Controls – Professional standards require auditors to address the possibility of management overriding controls. Accordingly, we identified as a significant risk that management of the City may have the ability to override controls that the organization has implemented. Management may override the organization’s controls in order to modify the financial records with the intent of manipulating the financial statements to overstate the City’s financial performance or with the intent of concealing fraudulent transactions.
•Revenue Recognition – We identified revenue recognition as a significant risk due to financial and operational incentives for the City to overstate revenues.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, management adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, effective July 1, 2021. Accordingly, the effect of the accounting change as of the beginning of the year is reported in Note 21 of the financial statements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements were:
Management’s estimates were used in establishing allowances for accounts receivables, establishing self-insurance reserves, the net pension liability and related deferred inflows/outflows of resources related to pension. We evaluated key factors and assumptions used to develop the estimates in determining that it is reasonable in relation to the financial statements taken as a whole.
Packet Page 313 of 812Attachment 3 Page 2 of 6
3 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
The City’s disclosure of the defined benefit pension plans, net pension liability and related deferred inflows of resources and deferred outflows of resources in Note 13 to the financial statements. The valuation of the net pension liability and related deferred outflows/inflows of resources are sensitive to the underlying actuarial assumptions uses including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 13, a 1% increase or decrease in the discount rate has a material effect on the City’s net pension liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit.
The attached schedule of corrected misstatements summarizes misstatements identified as a result of our audit procedures were brought to the attention of, and corrected by, management.
The attached schedule of uncorrected misstatement summarizes mistatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the 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, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. As described in Note 1 to the financial statements, due to the adoption of GASB Statement 87, Leases, the City restated opening balances as of July 1, 2021. We have included an emphasis of matter in our report regarding this restatement.
Packet Page 314 of 812Attachment 3 Page 3 of 6
4 Representations Requested from Management
We have requested certain written representations from management that are included in the management representation letter dated December 15, 2022.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, business conditions affecting the entity, and business plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.
However, in accordance with such standards, we will review the other information and will consider whether such information, or the manager of its presentation, is materially consistent with the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the Members of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Sacramento, California
Packet Page 315 of 812Attachment 3 Page 4 of 6
City of Fairfield, California
Schedule of Corrected Misstatements
For the Year Ended June 30, 2022
5 Number Opinion Unit(s)Account/Description Debit Credit 1 Development Tax (Nonmajor
Governmental Fund)Taxes 85,627$
Accounts payable and other current liabilities 85,627$
City Capital Projects Development fees 588,918
Accounts payable and other current liabilities 588,918
(To accrue for liabilities owed as of June 30, 2022.)
Packet Page 316 of 812Attachment 3 Page 5 of 6
City of Fairfield, California
Schedule of Uncorrected Misstatements
For the Year Ended June 30, 2022
6 Number Opinion Unit(s)Account/Description Debit Credit 1 Special Programs Expenditures 40,162$
Accounts payable and other current liabilities 40,162$
Accounts receivable 40,162
Intergovernmental 40,162
(To record an accrual for FY 2022 activities.)
Packet Page 317 of 812Attachment 3 Page 6 of 6
eidebailly.com
Management Letter
For Fiscal Year Ended June 30, 2022
City of Fairfield, California
Packet Page 318 of 812Attachment 4 Page 1 of 5
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE
1 To the Management of City of Fairfield
Fairfield, California
In planning and performing our audit of the financial statements of the City of Fairfield, California (City), as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion 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.
During our audit we became aware of deficiencies in internal control other than significant deficiencies and material weaknesses that are opportunities for strengthening internal controls and operating efficiency. The observations and recommendations are summarized below. This letter does not affect our report dated December 15, 2022, on the financial statements of the City.
We will review the status of these comments during our next audit engagement. We will be pleased to discuss these items in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.
CURRENT YEAR OBSERVATIONS AND RECOMMENDATIONS
DATA SECURITY
Observation:
In discussions with those responsible for the administration of the Cayenta application, the City’s general ledger system, it was stated that data maintained in the Cayenta application was not stored in an encrypted state. This data includes sensitive personal identifiable information (PII), and the information would not be encrypted until the City migrates from Cayenta to a new system (Tyler Munis).
The payroll/human resources module is expected to go live in January 2023.
This is a recurring observation from the fiscal year ended June 30, 2021.
Recommendation:
As a best practice and data security standard, we recommend that the City take steps to store all sensitive data in an encrypted state.
Packet Page 319 of 812Attachment 4 Page 2 of 5
2 Management’s Response:
The City has acknowledged the risk present with unencrypted PII data at rest and has identified some fields in the City’s current ERP database (Cayenta) that do contain personal identifiable information (PII), which is in concurrence with this year’s internal control audit findings.
In an effort to mitigate this risk, the city has made the following observations and implemented the most appropriate mitigation factors to reduce the level of risk to an acceptable level until we are able to decommission the present ERP system. The Cayenta system runs on a database management system that is always on with the database files attached to the system always in motion. However, we also recognize that once the files are backed up to file, that data is at rest.
The following measures have been applied:
• Implemented current encryption standards and procedures to safeguard this PII data at rest in the database backup files.
• Encrypted network communications to protect these s tatic encrypted files when they are in motion.
• Database files themselves, while already in motion, are also split across many physical disks with an encrypted configuration, making the individual disks unusable without the entire proprietary disk management array.
• Configured 24/7 network and endpoint monitoring powered by AI for alerting on intrusion, authentication, suspicious or malicious activity. This system is monitored 24/7 by a live person at our security operations center (SOC), and City staff is on call to respond. • Implemented privilege separation to protect access to critical systems including all database systems. City’s datacenter itself is setup inside the police department and is protected by badged access with recorded camera monitoring.
The Cayenta system is currently in the process of being replaced to a new system (Tyler Munis) in July 2022, and the decision to replace it was partially based upon the PII encryption risk presented by that system. The City did explore the possibility of encrypting individual fields in the Cayenta system and found that the cost including contract labor would likely be more than $150,000 and take approximately six months to work through the software customization process with the vendor. This would include in- depth regression testing for the custom modifications to the existing software that would be required to allow it to handle the encryption. The process would also cause a delay in the implementation of the new ERP system, increasing its cost and delaying the city’s ability to fully mitigate the risk through the replacement of the Cayenta system.
The City did explore other methods of mitigating this specific risk and found that this mitigation plan would be the most effective and timely method to achieve full mitigation. Due to the high cost and high risk involved through software customization and the delay in implementing the new ERP system which would eliminate this risk, the city feels that the current actions that have already been taken to mitigate this specific risk are the appropriate action with both the PII data and available resources including taxpayer dollars.
Packet Page 320 of 812Attachment 4 Page 3 of 5
3 INFORMATION TECHNOLOGY
Observation:
In discussion with the City’s information technology department, we observed the following for FY 2022:
1. The City’s Technology Disaster Recovery Plan policy covering Backup and Replication procedures has not been reviewed since 2020 (no documented review).
2. The City does not have a formal process in place to complete comprehensive data restoration tests on a defined basis and documents the results.
3. The City does not have a formal information security policy in place.
4. The City does not consistently conduct formal logical and physical access reviews on a defined basis.
5. The City has not established policies and procedures to govern the use of or process integrity review of spreadsheets used in the financial reporting process, including considerations for security, availability, and data integrity.
Recommendation:
As a best practice and industry standard, we recommend the following for the observations noted above:
1. Review and approve important policies and procedure s supporting critical business and technology processes at least annually/defined periodic basis.
2. Establish a formal process for conducting Data Restoration tests on a defined basis based on their business risk and business needs and to document the results.
3. Establish formal, documented information security policies that are approved by senior management and addresses key elements of security management, including the following:
a. Access control
b. Change management
c. Security awareness training
d. Security-incident procedures
e. Data backup and recovery
The City should also establish formal policies and procedures related to information security, addressing the areas of access control, segregation of incompatible duties, software development, and change management.
4. Establish formal procedures for resource owners to perform periodic reviews of current user access permissions on the financial applications, underlying infrastructure and data center to ensure continued appropriateness.
5. Establish internal control of spreadsheets used in the financial reporting process, including considerations for security, availability, and data integrity.
Management’s Response:
1. IT department is planning to hire a consultant to develop these critical policies and procedures in FY 2024/FY2025
2. Agreed.
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4 3. City is the process of completing the Digital Strategic Plan, Cyber Resilience Plan and a GIS masterplan. All of these plans will address the need for the policy development. The goal is have these policies developed by JUN 2024. Regarding recommendation 3(c), security awareness training is already in place and is included with the new-hire package to review and complete, and conducted citywide on an annual basis. Regarding item recommendation 3(d) City recently replaced its Backup system.
4. All policy documentation will be handled as one project and target completion date is Jun 2024.
5. As part of the cyber resilience plan (CRP) one of the recommendations is to implement a data classification system. IT is planning on presenting the results from CRP to Senior leadership team in Jan and to City Council in Feb. IT plans on implementing this system in FY24/FY25 budget cycle based on the recommendations and pending budget approval. IT will work with Finance to develop a process to address these issues.
Our audit procedures are designed primarily to enable us to form an opinion on the financial statements, and therefore, may not bring to light all weaknesses in policies or procedures that may exist. We aim, however, to use our knowledge of the City gained during our work to make comments and suggestions that we hope will be useful to you.
We would be pleased to discuss these comments and r ecommendations with you at any time.
This report is intended solely for the information and use of the City Council, management, and others within the City and is not intended to be and should not be used by anyone other than these specified parties.
Sacramento, California
December 15, 2022
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What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 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 Members of the City Council
City of Fairfield, California
We have audited, 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 15, 2022. Our report included an emphasis of matter paragraph regarding the City's adoption of Governmental Accounting Standards Board Statement No. 87, Leases, effective July 1, 2021.
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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2022-001 that we consider to be a significant deficiency.
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2 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.
City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Findings and Responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
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.
Sacramento, California
December 15, 2022
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City of Fairfield, California
Schedule of Findings and Responses
For the Year Ended June 30, 2022
3 2022-001 Financial Reporting
Significant Deficiency
Criteria:
Management is responsible for taking responsibility for the preparation and fair presentation of the financial statements. Management is responsible for ensuring that all financial records and related information is reliable and properly recorded.
Condition:
During our audit, we identified audit adjustments for accruals not identified by management.
Cause:
The City was undergoing a transition to a new general ledger at the end of the fiscal year. As a result, two accruals were not identified by management.
Effect:
Adjustments were necessary to fairly present the financial statements for the fiscal year.
Recommendation:
We recommend that the City review its procedures over year-end accruals to ensure that all accruals are identified.
Views of Responsible Officials
The City will work to further enhance its review process over year-end accruals. This process will become more effective with the implementation of the new Tyler ERP, as the review of post year-end transactions will be more efficient with the automatic accrual features available through Tyler.
For the transactions in question, part of the issue stemmed from the challenges in working with both financial systems at the same time—Cayenta (old system) and Tyler (new system). The larger transaction ($674k) took place in the first week of Tyler implementation which was a very chaotic set of circumstances, wherein workflows got reset and several processes needed adjustments during the early part of implementation. For the smaller transaction (40k), this came in fairly late in the process (in September) and if it had been accrued for, an additional, corresponding entry would have been booked as well—with a Grants receivable and a grant revenue being recorded—so there would be no net effect to fund balance. For these reasons, this second transaction ($40k) was not accrued for, and rather recorded in the ensuing fiscal year 2022-2023.
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City of Fairfield, California
Popular Annual Financial Report
Fiscal Year Ended June 30, 2022
Prepared by: Finance Department – AccounƟng Division
Packet Page 326 of 812Attachment 6 Page 1 of 19
Popular Annual Financial Report for FY 2021-22
City Council and Elected Officials
A Message to Our Readers Table of Contents
→2 - City Council and Elected Officials
→2 - Management Leadership Team
→3 - City and Government Profile
→4 - City and Demographic Information
→4 - Major Employers and Trend Information
→5 - Economic Summary
→6 - Summary Entity Financial Statements
→10 - Financial Overview and Long Term
Outlook for the City’s General Fund
→12 - Major Revenue Sources
→13 - Financial Long Term Outlook for the
City’s Other Funds
→15 - Cash and Investments
→16 - Long-Term Obligations
→17 - Capital Assets
→18 - Capital Improvement Plan
For additional details regarding information contained
in this PAFR, you can review the City’s most current
ACFR and the operating budget and Capital Improvement
Plan at https://www.fairfield.ca.gov/government/city-
departments/finance/financial-reports.
The City is pleased to present its Popular Annual
Financial Report (PAFR) for the fiscal year ended
June 30, 2022. The purpose of the PAFR is to inform
the community of the City’s fiscal condition in an
easy to read format. The information has been
drawn from the City’s Annual Comprehensive
Financial Report for the fiscal year ended 2021-
2022.
The City of Fairfield’s Annual Comprehensive
Financial Report for the year ended 2020-2021 was
awarded the Certificate of Achievement for
Excellence in Financial Reporting by Government
Finance Officers Association of the United States
and Canada (GFOA). The Certificate of Achievement
is the highest form of recognition for excellence in
state and local government financial reporting.
In order to be awarded a Certificate of
Achievement, a government unit must publish an
easily readable and efficiently organized Annual
Comprehensive Financial Report (ACFR), whose
contents conform to program standards. Such an
ACFR must satisfy both generally accepted
accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of
one year only. We believe that our current ACFR
continues to conform to the Certificate of
Achievement Program’s requirements, and we are
submitting it to GFOA to determine its eligibility for
another Certificate. The City also received the
Award for Outstanding Achievement in Popular
Annual Financial Reporting for its PAFR for the prior
fiscal year.
Except for the General Fund information included in
this report, the financial numbers are presented
using the accrual method of accounting similar to
the private sector, where revenues are recognized
in the period in which they are earned and expenses
are recognized in the period in which the liability is
incurred. In addition, information is presented in a
summarized format and certain information and
disclosures required by GAAP are omitted.
1 Packet Page 327 of 812Attachment 6 Page 2 of 19
Popular Annual Financial Report for FY 2021-22
City Council and Elected Officials
Harry T. Price Rick Vaccaro
Mayor Vice-Mayor
District 4
Chuck Timm Scott Tonnesen Catherine Moy Doriss Panduro Pam Bertani Councilmember Councilmember Councilmember Councilmember Councilmember District 1 District 2 District 3 District 5 District 6 Karen L. Rees Arvinda Krishnan
City Clerk City Treasurer
Management Leadership Team
David Gassaway Matt Luckenbach John Furtado
Interim City Manager Fire Chief Director of Finance
David Lim Farbod Pirouzmand Paul Kaushal
City Attorney Director of Human Resources Director of Public Works David Feinstein Dan Marshall LaTanna Jones
Interim Director of Police Chief Director of Housing Services Community Development
Kristina Kaunzinger Savita Chaudhary
Director of Parks and Recreation Director of Information Technology 2 Packet Page 328 of 812Attachment 6 Page 3 of 19
Popular Annual Financial Report for FY 2021-22
City Profile and Demographic Information
City Profile
Government Profile
The City is a general law city, and was incorporated in 1903. It has a Council-Manager form of government with the Mayor elected at large and six Council members are voted by the district. They all serve four-year, staggered terms.
There are also two citizen commissions whose members are appointed by the Council to fixed terms: Planning and Youth. The City also has a five-member Fairfield Taxpayers Committee (the “Measure P Committee”) whose members are appointed by Council to a fixed term. The City Clerk and Treasurer are elected. The City Council appoints the City Manager and Attorney. Department heads are appointed by the City Manager.
The City is organized into eight departments: Public Works, Police, Fire, Finance, Community Development, Parks and Recreation, Housing Services, and Administration; with the Administration department being comprised of Information Technology, Human Resources, as well as the executive, legislative, and legal offices. The chart below shows the City’s full time staff levels during the past ten years. The City’s employees are 0.5% of the total population of the City.
The City provides a broad range of services including police and fire protection; construction and maintenance of streets, parks, storm drains and other infrastructure; recreational and cultural activities, including two 18-hole championship golf courses; and administrative support services. Some major public services delivered within the City’s boundaries, including library, wastewater, and education, are provided by other governmental agencies. The City is not financially accountable for the operations of these franchises or government agencies.
Fairfield sits at the northeastern portion of the
San Francisco Bay Area. The county seat of Solano
County since 1858, Fairfield has the vision of a
progressive city. Founded in 1856 by Captain
Robert Waterman, the City was named after
Fairfield, Connecticut. Community amenities
include an enclosed regional shopping mall with
over one million square feet and 150 stores, an
adult recreation center, the 650-acre Rockville
Hills Park, and a weekly farmer's market in
season. Situated between two of the fastest
growing areas in California, Fairfield bridges the
gap between the San Francisco Bay Area and the
Sacramento metropolitan region. The Napa and
Sonoma wineries lie an hour to the west, and Lake
Tahoe two hours to the east.
400
500
600
700
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
501 510 527 534 541 553 559 571 585 610
Total Authorized Full-Time Employees
3 Packet Page 329 of 812Attachment 6 Page 4 of 19
Popular Annual Financial Report for FY 2021-22
City Profile and Demographic Information
City and Demographic Information
Major Employers
Trend Information / Comparison of Cities
Travis Air Force Base U.S. Military 13,414
County of Solano Government 2,633
Fairfield-Suisun Unified School District Education 2,213 NorthBay Healthcare Center Healthcare 1,969
Solano Community College Education 750
Partnership HealthPlan Healthcare 561 City of Fairfield Government 553 Jelly Belly Candy Co. Manufacturing 489
Sutter Regional Medical Foundation Healthcare 475
Westamerica Bancorporation Banking 418
See the City’s original budget for fiscal years 2021-22 and 2022-23 for more information regarding these trends among comparable cities:
The City’s population growth rate is average.
The City’s per capita revenues from tax revenues is below average. The City has had significant swings in its property and sales tax revenues, building and foreclosure activity, unemployment rates, transit ridership and golf rounds played.
The City’s pension obligation contribution rate has increased significantly over the past ten years. The City’s Other Post-Employment Benefits (OPEB) liability is below the average. The City has a low industrial vacancy rate, but a high office vacancy rate.
Fairfield is an ethnically diverse community (U.S. Census Bureau data from 2021 indicates that of the total population, 17% is black, 16% is Asian, 30% is Hispanic, 30% is white and 7% is other/mixed). Local educational institutions include Solano Community College, and campuses of St. Mary’s College, Golden Gate University, University of Phoenix, Chapman University, California Maritime Academy, and Touro University. The University of California Berkeley and Davis are within 40 minute drive.
Size: 41.6 square miles
Population: 119,897
Population Ranking CA Cities: 53
Median Age: 35 years
Per Capita Personal Income: $35,094
Unemployment Rate (EDD 10/21): 4%
% of Pop. High School / College Degree: 87.4% / 27.9% Part 1 Crime Rate (FY2022): 30.42 per 1,000 persons
Elevation: 15 to 400 ft. above sea level
Fire Protection: ISO Rating 2 fire class
Sales Tax Rate: 8.375%
Median Price of Home Sales: $575,000
4 Packet Page 330 of 812Attachment 6 Page 5 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Economic Summary for FY 2021-2022 (as of June 2022)
Below is a summary analysis of some key indicators of the region’s economic environment.
Stock and Financial Markets
Stock markets tumbled for the fiscal year with the Dow Jones and S&P dropping 10.8% and 11.9% respectively. Interest rates rose exponentially during the year. Both were triggered by the Fed increasing interest rates in an effort to tackle high inflation. The Conference Board forecasts that economic weakness will intensify and spread more broadly throughout the US economy over the coming months with the possibility of a recession, to begin before the end of 2022.
This outlook is associated with persistent inflation and rising hawkishness by the Federal Reserve. The board forecasts that 2022 Real GDP growth will come in at 1.5 percent year-over-year and 2023 growth will slow to zero percent year- over-year. Below are the changes in the financial market as of June 30, 2022:
Stock / Financial Markets Index / Rate Fiscal Year Change Dow Jones 30,775 (3,727)
S&P 500 3,785 (513)
2 Year Treasury 2.92%2.62%
30 Year Home Mortgage 5.70%2.50%
Employment
The U.S. Bureau of statistics reported that job openings rose during 2022 from the prior fiscal year, in a still-tight labor market where demand for workers continued to far outpace the number of unemployed people looking for work. The increase in job openings and other figures in the Labor Department’s report on hiring demand and job turnover added to signs of a healthy labor market that has cooled slightly compared with the first half of the year. Payroll growth slowed in September but was still strong. Pay and benefit increases rose rapidly in the third quarter but at a similar pace as the prior quarter. Jobless claims have remained low during the period.
Unemployment Rate Fiscal Year Change
United States 3.6%-2.3%
California 4.2%-3.8%
Solano County 4.0%-3.7%
Fairfield 4.0%-3.5%
Inflation
Inflation continued to be the single most worrisome driver of the U.S. economy, despite the Fed increasing interest rates aggressively they have not managed to get it under control. Rising food and energy prices are eating into the discretionary spending of average consumers.
Inflation Rates Rate Fiscal Year Change
Bay Area CPI 6.8%3.6%
Turner Building CPI 2.2%0.9%
Personal Savings Rate 5.1%-4.3%
Oil Prices (as of 6/30/22)$107 $34
5 Packet Page 331 of 812Attachment 6 Page 6 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Economic Summary for FY 2021-2022 (as of June 2022) (Continued)
Rental Vacancy Rates
Both Fairfield’s office and industrial vacancy rates decreased during the fiscal year. The decrease in the office vacancy rates was driven by new leases primarily in the medical field. The decrease in the industrial vacancy rate was driven primarily due to multiple new warehouse leases across the city. The Heart of Fairfield revitalization efforts have shown to be effective with downtown generated revenues showing double digit growth.
Vacancy Rates Rate Fiscal Year Change
Office - Fairfield 25.7%-1.5%
Industrial - Fairfield 1.9%-1.5%
Government-Wide Financial Analysis
The Statement of Net Position (Statement) presents information on the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the City’s financial position is improving or weakening. The Statement reflects the fact that the City’s net position increased by $34 million in the current fiscal year. The increase in net position is due to the decrease in Liabilities due to debt settlement and reduced pension liabilities net of increase in deferred inflows of resources. Assets increased by $26 million due to robust revenues and lower spending with the receipt of ARPA funds. The Statement of Net Position also recognizes pension cost expenses that have been significantly lower for FY 21-22 as compared to FY 20-21. Below are descriptions of items included in the Statements. 2022 2021 $%
Current and other assets 485$ 458$ 27$ 6% Long-Term Assets 536 537 (1) 0% Total assets 1,021 995 26 3% Total deferred outflows of resources 32 42 (10) -24% Long term liabilities outstanding 239 325 (86) -26% Current and other liabilities 86 88 (2) -2% Total liabilities 325 413 (88) -21% Total deferred inflows of resources 71 1 70 7000% Net position:
Net investment in capital assets 464 469 (5) -1% Restricted 199 196 3 2% Unrestricted (6) (42) 36 86% Total net position 657$ 623$ 34$ 5% Change from 2021Totals - All Funds
Summary Statements of Net Position (in millions) - All Activities 6 Packet Page 332 of 812Attachment 6 Page 7 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Government-Wide Financial Analysis (Continued)
•Current Assets – This includes cash and investments, and items such as receivables, inventory and prepaid items expected to be converted into cash within one year. See the cash and investments section of this PAFR for additional information on these assets.
•Long-Term Assets – Includes land held for redevelopment and capital assets consisting of land, buildings, improvements, infrastructure, vehicles and equipment. These items provide services to the community and are not available for future spending. See the capital assets section of the PAFR for additional information. •Current Liabilities – Represents liabilities expected to be paid with cash within one year, including accounts payable, interest payable and unearned revenue.
•Long Term Liabilities – Includes the outstanding obligations for the City, including the City’s long-term debt for pensions, OPEB, compensated absences, leases, claims outstanding and bonded debt. See the long-term obligations section of this PAFR for additional details on these liabilities. •Deferred Outflows/Inflows of Resources – Represents a consumption or acquisition of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) or an inflow of resources (revenue) until that time.
•Net Position – Net investment in capital assets represents the City’s capital assets net of accumulated depreciation and related debt. The restricted portion is subject to externally imposed restrictions for activities such as capital projects, debt service, and community development and is not available for general operations. The unrestricted portion is available for general operations. The deficit amount shown is due to the City’s outstanding pension obligation.
7 Packet Page 333 of 812Attachment 6 Page 8 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Government-Wide Financial Analysis (Continued)
Description of Items in Statement of Activities
The following provides a brief description of the key items included in the Statement of Activities:
Revenues
Charges for Services – These revenues are collected for services to the public such as recreational classes, water fees and transit fares.
Grants and Contributions – Represents funding received from other governments and organizations for the purpose of financing the operating and capital costs of a special program, such as the City’s affordable housing program.
Taxes – Includes property, sales and transaction, franchise, transient occupancy and business license other taxes, which are described in more detail in a subsequent section of this PAFR.
Expenses
Admin / Finance – Includes the City Council, City Manager, Risk Management, Human Resources, contract City Attorney services, Information Technology, Finance and non-departmental programs.
Police and Fire – Includes Patrol, Dispatch, Investigations, Crime Prevention, Code Enforcement, Fire Suppression, Prevention, and Inspection.
Public Works – Includes Maintenance of Trees, Streets, Parks, Facilities, Sewer, Building and Equipment, Assessment Districts.
Community Development – Includes Planning, Building and Economic Development.
Housing – Includes Affordable Housing, Community Development Block Grant, Housing Authority and Community Resources.
Recreation / Golf – Includes Adult and Youth Activities, Aquatics and the City’s two golf courses.
Water Treatment Plants – Accounts for the City’s two water treatment plants.
Transportation – Accounts for the operations of the City’s transit system.
The City’s Statement of Activities is shown on the following page (in millions) for FY 2022 and 2021. The Statement of Activities summarizes by major revenues and expenses categories the receipt and expenditure of all funds during the year for governmental and business-type activities. Business-type activities include the City’s Water Utility, North Bay Water Treatment Plant, Golf and Transit Funds.
The total cost of all services this year was $225 million, with the amount for all governmental activities totaling $161 million, with program revenues covering $62 million (39%), resulting in a net cost of $99 million. The remaining portion of governmental activities were covered by taxes (some of which can only be used for certain programs) and other revenues, such as interest, general entitlements, sale of property, and transfers. The cost for business-type activities this year was $64 million. Revenues received to offset these activities include charges for services of $54 million and $16 million from operating and capital grants and contributions, primarily related to transportation.
There was an increase of $5 million in the net position for business-type activities (including investment earnings and transfers) to $157 million.
8 Packet Page 334 of 812Attachment 6 Page 9 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
2022 2021 $%
Revenues:
Program Revenues:
Charges for services 60$ 61$ (1)$ -2% Operating grants and contributions 40 37 3 8% Capital grants and contributions 32 50 (18) -36% General Revenues:
Property taxes 36 37 (1) -3% Sales and transaction taxes 56 50 6 12% Other taxes 16 14 2 14% Other revenues 19 13 6 46% Total revenues 259 262 (3) -1% Expenses:
Administration 13 11 2 18% Finance 1 2 (1) -50% Police 48 53 (5) -9% Fire 27 28 (1) -4% Public works 43 49 (6) -12% Community development 6 7 (1) -14% Housing 15 15 - 100% Parks and recreation 7 6 1 17% Interest on debt 1 1 - 0% Water utility 34 37 (3) -8% North bay treatment plant 9 10 (1) -10% Transportation 15 14 1 7% Golf courses 6 6 - 0% Total expenses 225 239 (14) -6% Increase (decrease) in net position 34 23 11 48% Net position July 1, as restated 623 600 23 4% Net position June 30 657$ 623$ 34$ 5% Total - All Funds Change from 2021
Summary Statements of Activities (in millions)
23%
16%
12%14%
22%
6%7%
Government-Wide Revenues by Source
$259 Million
Charges for services
Operating grants/contributions
Capital grants/contributions
Property taxes
Sales/transaction taxes
Other taxes
Other
21%
12%
19%3%6%
7%
19%
7%
6%0%
Government-Wide Expenses by Source
$225 Million
Police
Fire
Public Works
Community Development
Recreation / Golf
Housing
Water treatment plants
Transportation
Admin / Finance
Interest on debt
9 Packet Page 335 of 812Attachment 6 Page 10 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Financial Overview – General Fund
The General Fund is the main operating fund of the City. General Fund revenues were higher than the final budget by $9.7 million (8.6%), which is primarily attributable to higher sales and transaction taxes, other taxes including utility and franchise taxes, and increases in charges for services and other miscellaneous revenues that were offset by slightly lower property taxes, and a larger decrease in the fair market value of investments due to the rising interest rate environment. $ Variance
Positive 2021
Budget Actual (Negative)Actual
Revenues:
Property taxes 36,436,000$ 35,957,079$ (478,921)$ 36,479,332$ Sales tax 25,199,000 30,282,631 5,083,631 26,261,101 Transaction and use taxes (Measure P)21,728,000 25,896,769 4,168,769 23,328,607 Utility and franchise taxes 9,530,000 10,285,953 755,953 9,618,196 Other taxes 6,021,748 6,292,012 270,264 5,771,919 Licenses, permits and fines 3,209,000 3,934,657 725,657 4,078,924 Intergovernmental 431,984 696,958 264,974 573,360 Charges for services 6,813,617 7,859,790 1,046,173 6,310,413 Investment income 872,646 827,087 (45,559) 1,348,034 Net decrease in fair value of investments (3,658,668) (3,658,668) Miscellaneous 2,159,117 3,734,139 1,575,022 1,758,025 Total Revenues 112,401,112 122,108,407 9,707,295 115,527,911 Expenditures:
Current:
Administration 6,127,790 4,466,926 1,660,864 3,817,451 Finance 1,648,674 1,659,903 (11,229) 1,398,721 Police 49,283,515 49,350,555 (67,040) 47,189,271 Fire 25,619,760 26,774,174 (1,154,414) 24,600,363 Public works 14,720,093 14,608,124 111,969 13,262,014 Parks and recreation 7,998,071 5,861,144 2,136,927 4,719,771 Community development 5,059,587 4,780,518 279,069 4,108,255 Non-departmental 5,802,081 9,111,044 (3,308,963) 9,882,129 Debt service:
Principal retirement - 90,519 (90,519) Interest - 2,554 (2,554) Total Expenditures 116,259,571 116,705,461 (445,890) 108,977,975 Excess revenues over expenditures (3,858,459) 5,402,946 9,261,405 6,549,936 Other Financing Sources (Uses):
Leases (as Lessee)- 618,455 618,455 Transfers in 18,634,072 18,634,072 - 1,248,863 Transfers out (22,330,562) (20,144,289) 2,186,273 (4,623,503)
Total other financing sources (uses)(3,696,490) (891,762) 2,804,728 (3,374,640) Net change in fund balance (7,554,949) 4,511,184 12,066,133 3,175,296 Fund Balance - Beginning of Year, as restated 52,295,293 52,295,293 - 49,119,997 Fund Balance - End of Year 44,740,344$ 56,806,477$ 12,066,133$ 52,295,293$ 2022
10 Packet Page 336 of 812Attachment 6 Page 11 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
21-22 22-23 23-24 24-25 25-26 Trend
Revenues / Transfers In $141.4 $127.4 $118.3 $123.3 $125.8 Expenditures / Transfers Out 136.8 129.4 121.3 122.1 124.6 (Deficit)/Surplus for Year 4.5 (2.0) (3.0) 1.2 1.2
Available Ending Reserves $56.8 $54.8 $51.8 $53.0 $54.2 % of Expenditures 42% 42% 43% 43% 43%
General Fund Five Year Trend through Fiscal Year 2025-26 (In Millions)
$36
$30
$26
$10
$6 $14
General Fund Revenues by Category FY
2021-22
(in Millions)
Property Taxes 29%
Sales Tax 25%
Measure P Taxes 21%
Utility / Franchise Taxes
9%
Vehicle / Other Taxes
5%
Other 11%
Financial Long Term Outlook – General Fund
$49
$27 $15
$15
$20
$6 $5
General Fund Expenditures by
Department FY 2021-22
(in Millions)
Police 36%
Fire 20%
Public Works 10%
Admin/Finance/Non-Dept
12%Transfer Out 15%
Parks and Recreation 4%
Community Development
3%Debt Service 0%
The General Fund’s major revenue sources include
property and sales taxes / Measure P local taxes, utility users and franchise taxes, transfer and vehicle taxes and hotel taxes. Together these groups comprised 89% of
total revenues for FY 21-22. The remaining 11%
includes revenues such as licenses and permits, charges for services, miscellaneous income, and interest/rental income. The City received $19.8 M in one-time ARPA
funds of which $16.7M were recognized as revenue loss
and is reflected as a transfer in, this has had a positive impact to the overall health of the General Fund.
A significant portion of the City’s General Fund revenue is dependent revenues received from local Measure P, a
1% local transaction and use tax, which went into effect April 1, 2013 and will expire in 2033. The revenue from this measure is to protect the safety, services, and
quality of life in Fairfield along with improving the City’s infrastructure.
The City was able to maintain General Fund
reserves at the City Council’s established level
of 20% of expenditures during FY 21-22.
The below table provides an overview of the
City’s General Fund reserve levels over the next
four years. The City is currently projecting a
few years of deficits. This is primarily due to
increasing the funding to some of the internal
service charges, slower recovery of some
revenue streams such as transient occupancy
taxes as well as higher increases in pension
costs driven by CalPERS rate reductions and
lower than projected investment returns.
11 Packet Page 337 of 812Attachment 6 Page 12 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Government-Wide Financial Analysis General Fund Major Revenue Sources •
• 4
Sales Taxes - Sales and local sales transaction taxes are the City’s other major sources of revenue. The sales tax rate in Solano County is 8.375%, of which 1% is the "local" or City share and 1% reflects the local use tax. Retail sales nationwide for the year ended June were up 8.2% over the same month in the previous year. The chart to the right shows the change in sales tax for the past 10 years, which includes a comparison of FY 21-22 to FY 20-21 where the City’s sales and use tax collections were up 15%. This increase was primarily driven by the recovery from the COVID- 19 pandemic, as seen in the restaurant and hotel sector along with a large growth in the auto and business industries.
Property Taxes - Pursuant to Proposition 13, passed by California voters in 1978, countywide property taxes are set at 1% of assessed value. Upon change of ownership, the property value will be reassessed to the current market value (sales price). The City receives approximately 17% of the 1% countywide property tax collected in the City.
Property taxes are one of the largest source of revenue to the General Fund since the State passed legislation regarding the collection of the Vehicle License Fee previously collected separately from property taxes. Property taxes, including Motor Vehicle in Lieu Tax are approximately 29.4% of the City’s total General Fund revenues for FY 21-22. The collection of secured property taxes are expected to increase by approximately 6% for FY 22-23 and approximately 3.5% for future years, resulting from the increase in assessed values for properties within the city. It should be noted that residential properties represent approximately 71.5% of the total assessed property valuation within the City.
15%
13%
-2%
6%
2%
-2%
2%
-2%
7%
9%
5%
-5%0%5%10%15%20%
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
Average
% Change in Sales Tax Revenue11%
1%
7%
6%
7%
7%
6%
6%
9%
9%
7%
0%2%4%6%8%10%12%
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
Average
% Change in Assessed Valuation12 Packet Page 338 of 812Attachment 6 Page 13 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Financial Long Term Outlook – Other Funds
Water Funds
The Water Utility operates two treatment plants, the Waterman Plant located off of Vista Grande and the North Bay Water Treatment Plant (NBR) located off of Peabody Road. The last water rate increase went into effect in 2021. A water master plan is programmed for FY 22-23 which will drive capital needs and provide critical information regarding any proposed rate increases to insure the stability of the Water Funds.
Golf Funds
These funds account for the operations of the City’s Paradise Valley and Rancho Solano golf courses. Although the total number of taxable rounds decreased at the City’s golf courses by 6% during the past fiscal year, overall course revenues only decreased 3% as the increase in rental income has offset some of the loss on revenue related to rounds. For the second consecutive year the courses did not require additional support from the City. With the golf course bonds being paid off in FY 22-23, the golf courses are going to be utilizing the excess working capital to address deferred maintenance needs and ensure the courses continue to operate without the assistance of the General Fund. The City’s forecast for its Golf Funds through FY 25-26 is shown below:
21-22 22-23 23-24 24-25 25-26 Trend
Revenues $6.2 $5.9 $6.0 $6.0 $6.1
Transfer In from Admissions Tax 0.0 0.0 0.0 0.0 0.0
Expenses / Transfers Out 5.9 6.7 6.0 6.1 6.2
(Deficit)/Surplus for Year 0.3 (0.8) (0.0) (0.1) (0.2)
Ending Working Capital 2.1 1.3 1.3 1.2 1.0
Golf Funds Five Year Trends through FY 25-26
(in millions)
13 Packet Page 339 of 812Attachment 6 Page 14 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Financial Long-Term Outlook – Other Funds (Continued)
Transit
These funds account for the operations of the City’s
fixed route and demand response bus service,
which receive grants for its operations and capital
needs from federal, state and local governments. In
September 2021, the STA Board voted to transition
the commuter service operations from two
operators to one operator, Solano County Transit
(SolTrans). The impact of the transition is an overall
reduction to the revenues and corresponding
expenses in the transit enterprise fund and a
reduction of 3 full time employees in the
transportation division. Transit relies heavily on
grants to satisfy its equipment replacement and
capital needs, and there is no guarantee that these
grants will be available in the future. In the event grant funds are not available, Transit will have to explore alternatives to reduce operating expenses and/or grow revenues.
Internal Service Funds
These funds account for many services provided to all departments within the City, including the funding for insurance and compensated absences. Since the City is self-insured, it is prudent to fund a portion or all of the liability owed over time so other funds are not heavily affected in any one year. See Notes 10 and 14 in the City’s FY 21-22 Annual Comprehensive Financial Report for the actuarial assumptions used. The major self-insurance liabilities, other post-employment benefits (OPEB), and compensated absences with their corresponding funding reserves as of June 30, 2022 are listed below:
Workers'
Compensation
General
Liability
Other Post-
Employment
Benefits (OPEB)
Compensated
Absences
(Governmental
Activities only)Combined
Cash Reserve $14,647,189 $1,909,491 $1,385,047 $4,825,553 $22,767,280 Actuarial Liability $9,304,000 $4,895,000 $20,774 $18,339,164 $32,558,938 % of Liability Funded 157%39%6667%26%70%
14 Packet Page 340 of 812Attachment 6 Page 15 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Cash and Investments (As of June 2022)
The City's investments listed below are in accordance with City's investment policy, which emphasizes the safety, liquidity and return of its investments. The portion of the portfolio not invested in the State Local Agency Investment Fund (LAIF) is invested with the City’s two investment advisors, Public Financial Management (PFM) and Chandler Asset Management (Chandler). The City also held $10 million in bank balances and $19 million in bond reserves in its California Asset Management Program (CAMP) portfolio as of 6/30/22. All of the City’s rated investments are rated “A” or higher at 6/30/22. See Note 4 in the City’s FY 21-22 ACFR for additional information regarding the City’s investments.
$45 ,
12%
$105 ,
28%
$77 ,
21%
$62 ,
17%
$29 ,
8%
$53 ,
14%
By Fund (In Millions)
General Fund Special Revenue
Water Utility Internal Service
NBR Other
Grand Percent
Summary by Instrument Type LAIF Chandler PFM Total of Total Agencies $13,497,459 $48,256,032 $34,149,467 $95,902,958 27%
Treasury 49,073,212 62,873,377 70,577,136 182,523,725 51% Medium Term Notes (MTN)150,290 26,149,332 31,233,496 57,533,118 16% Certificate of Deposits (CDs)5,439,061 2,237,648 5,582,972 13,259,681 4% Commercial Paper (CP)3,148,930 992,568 4,141,498 1%
Supranationals 1,442,067 1,442,067 0%
Money Market (MM) / Other 257,640 2,294,626 155,393 2,707,659 1% Total Market Value $71,566,592 $142,803,583 $143,140,531 $357,510,706 100% Yield to Maturity 0.86%1.42% 0.89% 1.10%
Trailing 12 month yield 0.35%1.29% 0.59% 0.85%
Money Market Funds Investment Managers
Grand Percent
Summary by Maturity LAIF Chandler PFM Total of Total
0-1 month $71,566,592 $2,294,626 $155,392 $74,016,610 20% 1-12 months 33,295,766 25,723,272 59,019,038 17%
1-2 years 38,196,533 61,639,136 99,835,669 28%
2-3 years 38,718,809 54,531,644 93,250,453 26%
3-4 years 15,794,525 1,091,087 16,885,612 5%
4-5 years 14,503,324 14,503,324 4% Total Market Value $71,566,592 $142,803,583 $143,140,531 $357,510,706 100% Total Amortized Cost 72,500,000 147,410,207 148,110,261 368,020,468 Amount Market Value Over / (Under) Cost ($933,408) ($4,606,624) ($4,969,730) ($10,509,762) Estimated GASB 31 YTD Market Value Entry ($939,382) ($6,814,214) ($5,602,587) ($13,356,183) -3.63% % of Portfolio 20.0%39.9% 40.0% 100.0%
Average Maturity (years)0.85 2.08 1.79 1.72
Investment ManagersMoney Market Funds
15 Packet Page 341 of 812Attachment 6 Page 16 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Long-Term Obligations
The City continues to maintain good credit ratings on all of its debt issues, as evidenced by the AA rating assigned by Standard and Poor’s to its Pension Obligation Bonds (with AAA being the highest rating). The graph below summarizes the City’s long-term obligations (in millions). The City’s net OPEB liability, covering retiree health and dental payments, is $0.5 million. The City set aside $3.0 million in an internal service fund and in March 2018, the City established an irrevocable trust to help offset this liability. The City’s net OPEB liability relates to a closed plan with a total of 24 members. The actuarial study prepared in the analysis of this obligation assumes a long-term rate of return of 5.85%. The health costs will decrease annually from 5.7% until the rate reaches 4.0%. The dental rate of 4% will increase annually. Annual payments for FY 21-22 totaled $217,666. See Note 14 of the City’s ACFR for more information regarding the City’s net OPEB Liability.
The City’s total net pension liability with CalPERS for FY 21-22 was $120 million, based upon a measurement date of June 30, 2021. This represents a 83% funding of the total pension liability of $726 million. In addition, the City has pension obligation bonds totaling $27.4 million of principal and interest with annual debt service of $3.0 million.
See Note 13 of the City’s FY 21-22 ACFR for more information regarding the City’s pension obligation.
The City’s long-term obligations of governmental activities show a decrease during FY 21-22 with an outstanding balance of $169 million as of June 30, 2022. The decrease of $71 million to the net pension liability was due to CalPERS return on investments during FY 21-22. Long-term obligations for business-type activities decreased in FY 21-22 by $14 million, to $84 million, a result of CalPERS return on investments. Refer to Note 8 in the footnote section of the City’s FY 21-22 ACFR for a more detailed listing of the City’s outstanding debt and Notes 19 and 20 in the City’s FY 21-22 ACFR for more information on Successor Agency debt as well as non-commitment debt. 2022 2021 2022 2021 2022 2021
General Obligation Bonds 6$ 7$ 6$ 7$
Pension Obligation Bonds 27 29 27 29
Utility-Water Revenue Bonds 63$ 67$ 63 67 Recreational Revenue Bonds 1 1 1 1
Compensated Absences 18 19 2 2 20 21
Claims and Judgments 14 15 14 15
Leases 2 2
Net Pension Liability 102 170 18 28 120 198 Total Indebtedness 169$ 240$ 84$ 98$ 253$ 338$ Summary of Long-Term Indebtedness (in millions)
Governmental Activities Business-Type Activities Total
47%
11%
25%
5%
6%1%1%
2%
Pension
Pension Bonds
Water
Leave
Insurance
Golf
Leases
Other
Long Term Debt by Type
16 Packet Page 342 of 812Attachment 6 Page 17 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Capital Assets
For FY21-22, the value of the City’s capital assets at cost before depreciation was $1.1 billion, with the changes detailed by category in the table below. Major capital projects in FY21-22 include:
• West Texas Gateway Project - $2.7 million
• Purchase of land for new
Fire Station 39 - $1.3 million
• Street resurfacing and pavement
maintenance - $ 3.0 million
• Enterprise Resource Planning
(new Financial Software) - $1.5 million
Asset Type
Original Cost as
Reported
6/30/2022 % of Total
Net Additions
(Deletions) for
Fiscal Year
Annual
Depreciation
at Cost
Governmental Activities
Land / Construction in Progress 66,969,684$ 6%7,373,437$ N/A Buildings / Improvements 293,384,789 27%35,671 7,613,844 Vehicles and Equipment 57,213,766 5%3,520,964 3,283,454 Infrastructure
Streets 190,638,048 17%3,039,998 4,289,155
Storm Drains 49,959,261 5%870,927
Sewer Pipes/Pump Stations 16,703,083 2%565,748 294,968 Streetlights/Traffic Signals 28,753,252 3%1,307,469 470,778 Bridges/Retention Basins 30,563,307 3%206,539 516,242 Right-to-use leased assets 2,087,762 1,629,293 138,129 736,272,952 68% 17,679,119 17,477,497
Business-type Activities
Water Utility 238,367,001 22%8,156,933 6,514,366 North Bay Treatment Plant (NBR)66,990,506 6%(58,332) 1,618,675 Transit 33,707,554 3% (3,376,293) 1,214,356 Golf Land and Improvements 31,725,376 3%404,298 323,132 370,790,437 34%5,126,606 9,670,529
Total Capital Assets 1,107,063,389 22,805,725$ 27,148,026$ Less Accumulated Depreciation (571,317,331)
Net Capital Assets 535,746,058$
6%
34%
9%
48%
3%
Fixed Assets by Type -At Cost
Land / Non Depreciable
Buildings / Improvements
Equipment / Vehicles
Infrastructure
Construction in Progress
17 Packet Page 343 of 812Attachment 6 Page 18 of 19
Popular Annual Financial Report for FY 2021-22
Financial and Budgetary Information
Capital Improvement Plan
Some of the major projects for FY 22-23 (and their costs) include the following:
•Various City Park Improvements (Allan Witt, Linear Trail) ($11.8 million), which includes improvements to play areas and skate park, as well as improvements to the Linear Park Trail to add amenities. This project is funded with AB 1600 Park funds, Quimby Act funds and Assembly Bill 178. •West Texas Sewer Main Replacement ($3.1 million). This project is funded with ARPA funds. •Various Street Resurfacing and Pavement Maintenance Project ($4.9 million), which is funded primarily with General and gas tax funds.
•Fire Station 36 ($5.4 million), which will provide much needed coverage to the western side of the Green Valley area. This project is funded with CFD 3 funds.
The City’s adopted capital improvement program (CIP) for FY 22-23 totals $61.1 million. The CIP is designed to meet community needs, with special emphasis on those projects that contribute to the City’s economic vitality and quality of life, including Fire Station 36, Westnet Alerting System, West Texas Sewer Main Replacement, Annual Street Pavement Maintenance, Sewer Collection System Asset Management Plan, Nelson Hill Reservoir Valve Replacement, Building Facilities and Parks Master Plan, as well as improvements at Allan Witt, Linear Trail and other community and neighborhood parks.
20%
22%
13%5%
20%
16%4%
Capital Improvement Plan FY 2022-23
(In millions)Water/NBR $12.4
Streets $13.5
Transit $7.7
Technology $3.1
Parks $12.2
Public Buildings $9.7
Other $2.5
18 Packet Page 344 of 812Attachment 6 Page 19 of 19
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 Independent Auditor’s Report on Compliance with
Ordinance 2012-20 (Measure P Transactions and Use Tax)
To the Honorable Mayor and Members of City Council
of the City of Fairfield
Fairfield, 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 business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California, (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 15, 2022.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of Ordinance 2012-20 approved by the City Council on November 6, 2012, insofar as they relate to the collection, management and expenditure of Measure P sales taxes in the City general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced terms, provisions, or conditions of the Ordinance, insofar as they relate to accounting matters.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Sacramento, California
December 15, 2022
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 Independent Auditor’s Report on Compliance with
Ordinance 1994-08 and 2002-27 (Utility Users Tax)
To the Honorable Mayor and Members of City Council
of the City of Fairfield
Fairfield, 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 business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California, (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 15, 2022.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of Ordinance 1994-08 approved by the City Council on May 17, 1994 and Ordinance 2002-27 approved by the City Council on November 5, 2002, insofar as they relate to the collection of utility users taxes in the City’s general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced terms, provisions, or conditions of the Ordinance, insofar as they relate to accounting matters.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Sacramento, California
December 15, 2022
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Packet Page 347 of 812Attachment 9 Page 1 of 35
City of Fairfield, California
Transportation Enterprise and
Capital Projects Funds
Annual Financial Report
For the Years Ended June 30, 2022 and 2021
Table of Contents
i
PAGE
Table of Contents i
City Council and Elected Officials ii
Management Leadership Team iii
Independent Auditor’s Report 1
Basic Financial Statements:
Transportation Enterprise Fund:
Statements of Net Position 6
Statements of Revenues, Expenses and Changes in Net Position 7 Statements of Cash Flows 8
Transportation Capital Projects Fund:
Balance Sheets 9
Statements of Revenues, Expenditures and Changes in Fund Balance 10
Notes to the Financial Statements 11
Required Supplementary Schedule (unaudited):
Transportation Enterprise Fund:
Schedule of the Transportation Enterprise Fund’s Proportionate Share of the City’s Miscellaneous Plan Net Pension Liability 26
Transportation Enterprise Fund:
Schedule of the Contributions 27
Supplementary Schedule (unaudited):
Transportation Enterprise Fund:
Schedules of Operating Expenses by Function 28
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on Audit of Financial Statement Performed in Accordance with Government Auditing Standards, the Transportation Development Act, California Government Code 8879.55, and Senate Bill 88 (2007) 29 Packet Page 348 of 812Attachment 9 Page 2 of 35
City of Fairfield
City Council and Elected Officials
ii
Harry T. Price Rick Vaccaro Mayor Vice Mayor-District 4
Chuck Timm Scott Tonnesen Catherine Moy Councilmember-District 1 Councilmember-District 2 Councilmember-District 3
Doriss Panduro Pam Bertani
Councilmember-District 5 Councilmember-District 6
Karen Rees Arvinda Krishnan City Clerk City Treasurer Packet Page 349 of 812Attachment 9 Page 3 of 35
City of Fairfield
Management Leadership Team
iii
David Gassaway Matt Luckenbach John Furtado
Interim City Manager Fire Chief Director of Finance
David Lim Farbod Pirouzmand Paul Kaushal
City Attorney Director of Human Resources Director of Public Works
David Feinstein Dan Marshall LaTanna Jones
Interim Director of Police Chief Director of Housing Community Development Services
Kristina Kaunzinger Savita Chaudhary
Director of Parks and Director of Information Recreation Technology
Packet Page 350 of 812Attachment 9 Page 4 of 35
iv
Packet Page 351 of 812Attachment 9 Page 5 of 35
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
City of Fairfield, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City of Fairfield, California (City), as of and for the years ended June 30, 2022 and 2021, and the related notes to the financial statements, which collectively comprise the City’s Transportation Development Act Article 4 and 8 Program (TDA Program)’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 Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City, as of June 30, 2022 and 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the years 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 (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). 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.
Packet Page 352 of 812Attachment 9 Page 6 of 35
2 Emphasis of Matter, Individual Fund Financial Statements
As discussed in Note 1, the financial statements present only the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City’s TDA Program and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2022 and 2021, the changes in its financial position, or, where applicable, its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
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 GAAS 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 GAAS 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.
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.
Packet Page 353 of 812Attachment 9 Page 7 of 35
3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of the TDA’s proportionate share of the City’s net pension liability and schedule of contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such 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. 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 or preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has omitted the management’s discussion and analysis that the accounting principles generally accepted in the United States of America requires 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 the missing information.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the schedule of operating expenses by function but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Packet Page 354 of 812Attachment 9 Page 8 of 35
4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2022, on our consideration of the Transportation Capital Projects Fund and the Transportation Enterprise Fund 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 Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Sacramento, California
December 15, 2022
Packet Page 355 of 812Attachment 9 Page 9 of 35
5 Packet Page 356 of 812Attachment 9 Page 10 of 35
City of Fairfield
Transportation Enterprise Fund
Statements of Net Position
June 30, 2022 and June 30, 2021
6 2022 2021
Assets:
Current Assets
Cash and cash equivalents (Note 1)-$ 1,907,062 Accounts receivable:
Metropolitan Transportation Commission 6,101,528 1,181,837 Federal Transit Administration 4,069,164 1,754,546 Interest and other receivables 58,492 76,386 Prepaid items - 18,000 Total current assets 10,229,184 4,937,831 Noncurrent Assets
Capital assets (Note 1 and Note 2):
Buildings and depreciable improvements 5,413,858 5,564,670 Equipment 28,293,696 31,519,177 Less: accumulated depreciation (29,882,791) (30,289,490) Total capital assets 3,824,763 6,794,357 Total noncurrent assets 3,824,763 6,794,357 Total assets 14,053,947 11,732,188 Deferred Outflows of Resources:
Deferred outflows related to pensions (Note 1 and Note 6)412,909 448,403 Total deferred outflow of resources 412,909 448,403 Liabilities:
Current Liabilities
Accounts payable and other current liabilities 649,833 1,449,046 Due to the City of Fairfield (Note 3)7,346,708 - Unearned revenue (Note 4)330,124 331,847 Due to Metropolitan Transportation Commission (Note 3)1,718,637 2,981,235 Compensated absences 5,516 5,271 Total current liabilities 10,050,818 4,767,399 Noncurrent Liabilities
Compensated absences 178,366 170,432 Net pension liability (Note 6)1,873,582 2,892,942 Total noncurrent liabilities 2,051,948 3,063,374 Total liabilities 12,102,766 7,830,773 Deferred Inflows of Resources:
Deferred inflows related to pensions (Note 1 and Note 6)800,357 - Total deferred inflow of resources 800,357 - Net Position:
Net investment in capital assets 3,824,763 6,794,357 Unrestricted (2,261,030) (2,444,539) Total net position 1,563,733$ 4,349,818
The notes to the financial statements are an integral part of these statements.
Packet Page 357 of 812Attachment 9 Page 11 of 35
City of Fairfield
Transportation Enterprise Fund
Statements of Revenues, Expenses, and Changes in Net Position For the Years Ended June 30, 2022 and 2021
7 2022 2021
Operating Revenues:
Charges for services 772,982$ 426,554 Miscellaneous 93,990 67,536 Total operating revenues 866,972 494,090 Operating Expenses:
Operations 7,983,573 7,718,388 Vehicle maintenance 2,541,483 2,673,345 General and administrative 1,732,257 1,936,471 Depreciation 1,214,356 1,418,907
Total operating expenses 13,471,669 13,747,111 Operating income (loss)(12,604,697) (13,253,021) Nonoperating Revenues (Expenses):
Investment income - 17,893 Net decrease in fair value of investments (10,236) - Local Transportation Funds 6,449,960 6,112,103 State Transit Assistance Funds 145,149 567,703 Federal Transit Administration 4,069,164 3,690,377 Regional Measure 2 769,982 625,900 Loss on disposition of capital assets (Note 2)(1,934,555) - Other revenue (expense)149,831 708,057 Total nonoperating revenues (expenses)9,639,295 11,722,033 Income (loss) before capital contributions (2,965,402) (1,530,988) Capital Contributions:
Local Transportation Funds 179,317 96,161 State Transit Assistance Funds 58,079
Total contributions 179,317 154,240 Change in net position (2,786,085) (1,376,748) Net Position:
Beginning of year 4,349,818 5,726,566 End of year 1,563,733$ 4,349,818
The notes to the financial statements are an integral part of these statements.
Packet Page 358 of 812Attachment 9 Page 12 of 35
City of Fairfield
Transportation Enterprise Fund
Statements of Cash Flows
For the Years Ended June 30, 2022 and 2021
8 2022 2021
Cash Flows from Operating Activities:
Receipts from customers and users 881,357$ 479,034 Payments to suppliers (8,454,283) (6,553,213) Payments to employees (1,353,398) (1,279,051) Payments for interfund services used (3,406,175) (3,496,481) Net cash provided by (used for) operating activities (12,332,499) (10,849,711) Cash Flows from Noncapital Financing Activities:
Grants 2,722,630 11,562,983 Proceeds from interfund loan 7,346,708 - Net cash provided by (used for) noncapital
financing activities 10,069,338 11,562,983 Cash Flows from Capital and Related
Financing Activities:
Purchases of capital assets (179,317) (154,240) Capital contributions 542,512 1,068,764 Net cash provided by (used for) capital and
related financing activities 363,195 914,524 Cash Flows from Investing Activities:
Investment income received (7,096) 17,807 Net cash provided by investing activities (7,096) 17,807 Net increase (decrease) in cash and cash equivalents (1,907,062) 1,645,603 Cash and Cash Equivalents:
Beginning of year 1,907,062 261,459 End of year -$ 1,907,062 Reconciliation of Operating Income (Loss) to net
Cash Provided by Operating Activities:
Operating income (loss)(12,604,697)$ (13,253,021) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense 1,214,356 1,418,907 (Increase) decrease in accounts receivable 14,385 (15,056) (Increase) decrease in prepaid items 18,000 (18,000) (Increase) decrease in deferred outflows related to pensions (322,073) (310,696) Increase (decrease) in accounts payable (799,213) 888,089 Increase (decrease) in compensated absences 8,179 17,309 Non-cash expense 138,564 422,757 Total adjustments 272,198 2,403,310 Net cash provided by (used for) operating activities (12,332,499)$ (10,849,711)
The notes to the financial statements are an integral part of these statements.
Packet Page 359 of 812Attachment 9 Page 13 of 35
City of Fairfield
Transportation Capital Projects Fund
Balance Sheets
June 30, 2022 and 2021
9 2022 2021
Assets:
Accounts receivable 201,000$ 201,000$
Total assets 201,000$ 201,000$
Liabilities and Fund Balance:
Liabilities:
Due to the City of Fairfield (Note 3)201,000$ 201,000$ Total liabilities 201,000 201,000
Fund Balance:
Unassigned - -
Total liabilities and fund balance 201,000$ 201,000$ The notes to the financial statements are an integral part of these statements.
Packet Page 360 of 812Attachment 9 Page 14 of 35
City of Fairfield
Transportation Capital Projects Fund
Statements of Revenues, Expenditures, and Changes in Fund Balance For the Years Ended June 30, 2022 and 2021
10 2022 2021
Revenues:
Federal Transit Administration -$ 202,348$
State Transit Assistance Funds - 201,000
Total revenues - 403,348
Expenditures:
Capital outlay - 403,348
Total expenditures - 403,348
Net change in fund balance
Fund Balance:
Beginning of year - -
End of year -$ -$
The notes to the financial statements are an integral part of these statements.
Packet Page 361 of 812Attachment 9 Page 15 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
11 Note 1 Summary of Significant Accounting Policies …………………………………………………………..…………….………………12 Note 2 Capital Assets……………………………………………………………………………………………………………………………………….. 18 Note 3 Due to Metropolitan Transportation Commission (MTC) / City of Fairfield………………………………………..…. 19 Note 4 Unearned Revenue…………………………………………………………………………………………………………………………….....19 Note 5 Fare Revenue Ratio .................................................................................................................................... 20 Note 6 Pension Plan ............................................................................................................................................... 20 Note 7 Contingent Liabilities .................................................................................................................................. 25 Note 8 Risk Management ...................................................................................................................................... 25 Note 9 Subsequent Event ...................................................................................................................................... 25 Packet Page 362 of 812Attachment 9 Page 16 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
12 Note 1 Summary of Significant Accounting Policies
The Transportation Enterprise Fund has provided transit services in the City of Fairfield (City) since 1975, when the demand responsive Dial-A-Ride Transit (DART) service was initiated with a fleet of small vans. Fixed route service was initiated in 1980 and consolidated with Suisun City’s transit system in 1989. Today, this consolidated transit system is known as Fairfield and Suisun Transit (FAST).
FAST is responsible for operating both fixed route and complementary paratransit service as required by the Americans with Disabilities Act. The current fixed route system consists of eight (8) local routes that operate within the city limits of Fairfield and Suisun. FAST also operates two (2) intercity, Solano Express routes, which are operated on behalf of the Solano Transportation Authority (STA) through a contractual arrangement effective January 14, 2010. The two intercity routes (services both implemented in July 2018) include the Blue Line which provides service between Sacramento and the Pleasant Hill BART station and the Green Express which provides service between Suisun City Amtrak/Fairfield Transportation Center to the El Cerrito del Norte BART. In September 2021, Solano Transportation Authority board moved to a single operator for all Solano Express lines and chose Solano County Transit (SolTrans) as the sole operator. As of April 2022, FAST has ceased operating the Green Express, and will cease operating the Blue Line during fiscal year 2022-2023.
Implementation of New GASB Pronouncements – In fiscal years 2021-2022 and 2020-2021, the City implemented the following new accounting standards in order to conform to the following Governmental Accounting Standards Board (GASB) Statements:
GASB Statement No. 84 – As of July 1, 2019, the City adopted GASB Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. This Statement does not have a material effect on the financial statements.
GASB Statement No. 87, - As of July 1, 2021, the City adopted GASB Statement No. 87, Leases. The implementation of this standard establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The standard requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. This Statement does not have a material effect on the financial statements.
GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to simplify accounting for certain interest costs. This Statement does not have a material effect on the financial statements.
GASB Statement No. 90 – In September 2018, the GASB issued Statement No. 90, Majority Equity Interests, An Amendment of GASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. This Statement does not have a material effect on the financial statements.
GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and eliminate diversity in practice. This Statement does not have a material effect on the financial statements.
Packet Page 363 of 812Attachment 9 Page 17 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
13 Note 1 Summary of Significant Accounting Policies (continued) GASB Statement No. 92 – In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance comparability in accounting and financial reporting to improve the consistency of authoritative literature by addressing practices issues that have been identified during implementation and application of certain GASB Statements.
GASB Statement No. 93 – In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objective of this Statement is to address the accounting and financial reporting implications that result from the replacement of an IBOR. This Statement does not have a material effect on the financial statements.
GASB Statement No. 97 – In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statement No.14 and No.84 and A Supersession of GASB Statement No.32. The objective of this Statement is (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement does not have a material effect on the financial statements.
GASB Statement No. 98 – In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR to replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments.
Future Governmental Accounting Standards Board (GASB) Pronouncements GASB Statement No. 94 – In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements . The objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the effect of this Statement.
GASB Statement No. 96 – In May 2020, the GASB issued Statement No. 96, Subscription-based Information Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the effect of this Statement.
GASB Statement No. 99 – In April 2022, the GASB issued Statement No. 99, Omnibus 2022, to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:
Packet Page 364 of 812Attachment 9 Page 18 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
14 Note 1 Summary of Significant Accounting Policies (continued) The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.
The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022.
The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023.
The City has not determined the effect of this statement.
GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62, to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The Statement is effective for reporting periods beginning after June 15, 2023. The City has not determined the effect of this Statement.
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences, which updates the recognition and measurement guidance for compensated absences. The Statement requires that the liabilities for compensated absences be recognized for (1) leave that has been not used and (2) leave that has been used but not yet paid in cash or settled through noncash means. The Statement is effective for reporting periods beginning after December 15, 2023. The City has not determined the effect of this Statement.
Basis of Accounting - The Transportation Enterprise Fund, a proprietary fund, is accounted for using the full accrual basis of accounting. Under this method of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
The Transportation Capital Projects Fund is accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available to finance expenditures of the current period and expenditures are generally recognized when the related fund liabilities are incurred. Revenues are considered to be available if they are received within 90 days after year-end, except for grants, which is one year. Revenue from grants are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Annual Financial Statements - The financial statements of the Transportation Enterprise Fund are intended to reflect only the financial position of the transit operations, results of its operations, and cash flows in conformity with generally accepted accounting principles. The financial statements of the capital projects fund are intended to reflect only the financial position and results of construction projects. Both financial statements are not intended to represent the financial position of the City of Fairfield as a whole. The City applies all applicable GASB pronouncements to these financial statements. In addition to the Transportation Development Act (TDA), the City participates in a number of federally assisted grant programs through the Federal Transit Administration (FTA).
These federally assisted programs are subject to the reporting requirements under the Single Audit Act in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and a separate report is prepared.
Packet Page 365 of 812Attachment 9 Page 19 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
15 Note 1 Summary of Significant Accounting Policies (continued) Transportation Enterprise Fund - This fund is used to account for the operations and management of the City’s transit operations, which are supported by TDA and FTA funding.
Transportation Capital Projects Fund - This fund is used to account for transportation capital projects, which allocate TDA, FTA, and State and Regional funding towards capital improvement projects.
Net Position - The net position of the Transportation Enterprise Fund consists of the net capital assets it currently uses for day to day operations of the transit system. All restricted funding from other agencies are applied first, before the City’s local funding source is utilized.
Statement of Cash Flows - For purposes of the cash flow statement, the City considers all pooled cash and investments of the Transportation Enterprise Fund as cash and cash equivalents.
Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents - The cash is held by the City as part of its pooled cash and investments. The pooled funds are invested in accordance with the City's investment policy established pursuant to state law. All monies not required for immediate expenses are invested or deposited to earn maximum yield consistent with safety and liquidity. Interest income is allocated to the fund based on its proportionate share of the pool. Refer to the City's Annual Comprehensive Financial Report for disclosures of cash and investments and related risk categorization.
Capital Assets - Capital assets capitalized in the Transportation Enterprise Fund are valued at historical cost.
Depreciation is computed using the straight line method over the estimated useful lives of thirty years for buildings, ten years for building improvements and five to twelve years for equipment.
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 that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
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 that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Amounts reported as deferred outflows of resources and deferred inflows of resources are related to the Transportation Enterprise Fund’s proportion of the City’s Miscellaneous Pension Plan and will be recognized in pension expense in future periods.
Long Term Obligations Compensated Absences - The liability for compensated absences includes the unused vacation leave, sick leave, and compensatory time off and personal leave, which are accrued as earned.
Pensions - For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, information about the fiduciary net position of the City of Fairfield’s California Public Employees Retirement System (CalPERS) Miscellaneous Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with Packet Page 366 of 812Attachment 9 Page 20 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
16 Note 1 Summary of Significant Accounting Policies (continued) the benefit terms. Investments are reported at fair value. Refer to the City's Annual Comprehensive Financial Report Note 12 and Note 6 of this report for additional disclosures of pension plans.
Transportation Development Act (TDA) - The State of California established the TDA to provide funds for public transportation. The TDA created Local Transportation Funds (LTF) around the State for the transportation purposes specified in the Act for various transportation agencies. Revenues of the LTF are derived from a 1/4 of one percent sales tax collected in each county, including Solano County. The City's LTF are administered by the Metropolitan Transportation Commission (MTC) and Solano County. The City has obtained funds from the LTF for transit operations and capital, a taxi program subsidy, and street improvements. The TDA projects are administered by the City. Articles of the TDA under which the City operates are:
1) Article 4 - funds operation and capital outlays for the public transportation systems in California. 2) Article 8 - funds service provided to elderly and handicapped persons under a contract between the City and private operators.
3) State Transit Assistance Funds – Beginning in 1980, these funds were derived from a statewide sales tax on diesel fuel and can are used for the operations and capital outlays of the transit system.
Federal Transit Administration (FTA) - The FTA has awarded operating, capital and planning grants to the City under various sections of the Urban Mass Transportation Act of 1964 and the amended Federal Transit Act of 1993. Sections of the FTA under which the City received funds are:
1) Section 5307 - Federal funds for support of public transportation system. 2) Section 5309 - Federal funds for capital projects for the public transportation system. 3) Section 5311 - Federal funds for operation and support in non-urbanized areas. 4) Section 5316 (JARC) - The Job Access and Reverse Commute (JARC) program was established to address the unique transportation challenges faced by welfare recipients and low-income persons seeking to obtain and maintain employment.
5) Section 5317 (New Freedoms) - The New Freedom formula grant program aims to provide additional tools to overcome existing barriers facing Americans with disabilities seeking integration into the work force and full participation in society.
State and Regional Funding - Below are the various funding sources received to support the operations and capital outlays for the public transportation system:
1) Proposition 1B - on November 7, 2006, this voter approved bond act which established funding sources to improve the transportation systems through various capital projects. The Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA) fund were established with this voter approved bond act, which provides transit systems with capital funding for rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, bus rapid transit improvements, or for rolling stock procurement, rehabilitation or replacement.
Packet Page 367 of 812Attachment 9 Page 21 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
17 Note 1 Summary of Significant Accounting Policies (continued) 2) Regional Measure 2 - on March 2, 2004, voters passed Regional Measure 2 (RM2) raising the toll on the seven State-owned toll bridges in the San Francisco Bay Area by $1.00. This extra dollar is to fund various transportation projects within the region that have been determined to reduce congestion or to make improvements to travel in the toll bridge corridors. RM2 establishes the Regional Traffic Relief Plan and identifies specific transit operating assistance and capital projects and programs eligible to receive RM2 funding.
3) The Low Carbon Transit Operations Program (LCTOP) is one of several programs that are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 by Senate Bill 862. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emission and improve mobility, with a priority on serving disadvantaged communities. Approved projects in LCTOP will support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance and other costs to operate those services or facilities, with each project reducing greenhouse gas emissions. For agencies whose service area includes disadvantaged communities, at least 50 percent of the total moneys received shall be expended on projects that will benefit disadvantaged communities. Senate Bill 862 continuously appropriates five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund (Fund) for LCTOP, beginning in 2015-
16. 4) State Transportation Assistance - State of Good Repair (STA - SGR) - The Road Repair and Accountability Act of 2017, Senate Bill (SB) 1 (Chapter 5, Statues of 2017), signed by the Governor on April 28, 2017, includes a program that will provide additional revenues for transit infrastructure repair and service improvements. This investment in public transit will be referred to as the State of Good Repair program. This program provides funding of approximately $105 million annually to the State Transit Assistance (STA) Account. These funds are to be made available for eligible transit maintenance, rehabilitation and capital projects.
Packet Page 368 of 812Attachment 9 Page 22 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
18 Note 2 Capital Assets
Capital assets for the Transportation Enterprise Fund are as follows at June 30, 2022 and 2021:
Balance Balance
7/1/2021 Additions Deletions* Transfers 6/30/2022
Depreciable capital assets:
Building and improvements 5,564,670$ (150,812)$ 5,413,858$ Communication equipment 1,801,661 (845) 1,800,816
Transportation equipment 29,696,460 179,317$ (3,401,700) 26,474,077 Office equipment 21,056 (2,253) 18,803
Total depreciable capital assets 37,083,847 179,317 (3,555,610) -$ 33,707,554 Accumulated depreciation:
Building and improvements (4,249,792) (142,036) 150,812 (4,241,016) Communication equipment (1,801,661)845 (1,800,816)
Transportation equipment (24,227,726) (1,069,634) 1,467,145 (23,830,215) Office equipment (10,311) (2,686) 2,253 (10,744)
Total accumulated depreciation (30,289,490) (1,214,356) 1,621,055 - (29,882,791) Total depreciable capital assets, net 6,794,357 (1,035,039) (1,934,555)- 3,824,763 Total net capital assets 6,794,357$ (1,035,039)$ (1,934,555)$ -$ 3,824,763$ Balance Balance
7/1/2020 Additions Deletions Transfers 6/30/2021
Non-depreciable capital assets:
Construction in progress 529,499$ 58,079$ (587,578)$ - Total non-depreciable capital assets 529,499 58,079 -$ (587,578)-$ Depreciable capital assets:
Building and improvements 5,474,942 89,728 5,564,670
Communication equipment 1,801,661 1,801,661
Transportation equipment 29,102,449 6,433 587,578 29,696,460 Office equipment 21,056 21,056
Total depreciable capital assets 36,400,108 96,161 - 587,578 37,083,847 Accumulated depreciation:
Building and improvements (4,094,478) (155,314)(4,249,792) Communication equipment (1,801,661)(1,801,661)
Transportation equipment (22,966,819) (1,260,907)(24,227,726) Office equipment (7,625) (2,686) (10,311)
Total accumulated depreciation (28,870,583) (1,418,907) - - (30,289,490) Total depreciable capital assets, net 7,529,525 (1,322,746)- 587,578 6,794,357 Total net capital assets 7,529,525$ (1,322,746)$ -$ 587,578$ 6,794,357$ *In September 2021, the Solano Transportation Authority board chose SolTrans as the sole operator for all Solano Express lines. Due to this transition, FAST ceased operating the Green Express line during FY 2021-2022 and transferred five buses to SolTrans at no cost. The five buses were originally purchased for $2,938,560 in September 2018. At the date of the transfer in February 2022, the assets had a book value of $1,934,555. The assets were removed from the City’s books, resulting in a loss on disposition of capital assets.
Packet Page 369 of 812Attachment 9 Page 23 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
19 Note 3 Due to Metropolitan Transportation Commission (MTC) / City of Fairfield The Transportation Enterprise Fund reflects a payable back to MTC as of June 30, 2022 and 2021, in the amount of $1,718,637 and $2,981,235, respectively, to be deposited into the City of Fairfield’s LTF account. This money will be available for future transit operations and capital projects.
The Transportation Enterprise Fund reflects a payable back to the City of Fairfield as of June 30, 2022 in the amount of $7,346,708. For financial statement purposes, a one day, non-interest bearing borrowing from the City of Fairfield is recorded as of June 30, 2022 and repaid the following day upon receipt of grant reimbursements.
The Capital Projects Fund reflects a payable back to the City of Fairfield as of June 30, 2022 and 2021, in the amount of $201,000 for both fiscal years. All capital project expenditures are funded by the City and the City will be reimbursed by the LTF accounts.
Note 4 Unearned Revenue
The City received various funding sources for certain capital projects which are eligible but have yet to be completed at the end of the fiscal year. Funding sources include Low Carbon Transit Operations Program and the State of Transportation – State of Good Repair. As of June 30, 2022 and 2021, the unearned revenues for the Transportation Enterprise Fund were $330,124 and $331,847, respectively, which will be used to fund various equipment and projects, as noted below.
2022 2021
Beginning balance 331,847$ 630,954$
Additions:
LCTOP 19,955 273,710
STA-SGR 28,433 32,813
Interest earned 2,935 7,878
Total additions 51,323 314,401
Reductions:
Bus and bus equipment (1,283) (595)
Electric infrastructure (51,763) (42,183)
Covid-19 Response and recovery
reduced or free fare program (570,730)
Total reductions (53,046) (613,508)
Ending balance 330,124$ 331,847$
Transportation
Enterprise Fund
Packet Page 370 of 812Attachment 9 Page 24 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
20 Note 5 Fare Revenue Ratio
Under the Transportation Development Act, the Transportation Enterprise Fund is required to maintain a ratio of fare revenue to operating expense of at least 20% for the fixed route service and specialized services combined.
The specialized service includes Local Special Fare Assistance, which consists of TDA collected from other local governmental agencies to run the Solano County inter-city taxi program and is included for the purpose of calculating the fare revenue ratio. Due to the impact on fares from the Covid-19 pandemic, the 20% fare revenue ratio requirement was waived for FY 20-21 (by Assembly Bill No. 90) and FY 21-22 (by Assembly Bill No 149). The calculation of the fare revenue for the fiscal year ended June 30, 2022 and 2021 is as follows:
Fixed Specialized Fixed Specialized
Route Service Total Route Service Total
Operating income
Passenger fares 666,200$ 106,782$ 772,982$ 410,533$ 16,021$ 426,554$ Miscellaneous 93,990 - 93,990 67,536 - 67,536
Local funds - RM2 734,550 - 734,550 625,900 - 625,900 LCTOP funds - Covid Response - - - 264,742 305,988 570,730 Total operating income 1,494,740$ 106,782$ 1,601,522$ 1,368,711$ 322,009$ 1,690,720$ Operating expenses 11,881,009$ 1,590,660$ 13,471,669$ $12,176,420 $1,570,691 13,747,111$ Less: Depreciation (1,144,833) (69,523) (1,214,356) (1,331,385) (87,522) (1,418,907) Adjusted operating expenses 10,736,176$ 1,521,137$ 12,257,313$ 10,845,035$ 1,483,169$ 12,328,204$ Fare revenue ratio 13.92%7.02%13.07%12.62%21.71%13.71%
2022 2021
Note 6 Pension Plan
A. General Information about the Pension Plan
The Transportation Enterprise Fund participates in the City’s Miscellaneous Pension Plan by sharing the costs related to the pension plan with the City for eligible employees. All plan information described below pertains to the overall plan for the City.
Plan Description – The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple-employer system that acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees of the Transportation Enterprise Fund are eligible to participate in the City’s Miscellaneous Plan. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov .
Benefits Provided - CalPERS provides 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. Classic miscellaneous members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
Packet Page 371 of 812Attachment 9 Page 25 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
21 Note 6 Pension Plan (continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Classic Plan Tier II PEPRA
Hire Date Prior to 8/26/2012 On or After 8/26/2012 On or After 1/1/2013 Formula 2.7% @ 55 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 52-67
Monthly benefits, as a % of annual salary 2.0% to 2.7%2.0% to 2.5%1.0% to 2.5% Required employee contribution rates 10.50%10.50%6.50%
Required employer contribution rates 36.650%36.650%39.150% Miscellaneous
Contributions - Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the City’s Miscellaneous Plan is 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 rates of employees.
For the year ended June 30, 2022 and 2021, the Transportation Enterprise Fund’s proportionate share of the City’s contribution to the City’s Miscellaneous Plan was $255,822 and $310,676, respectively.
B. Net Pension Liability
As of June 30, 2022 and 2021, the Transportation Enterprise Fund reported a liability of $1,873,582 and $2,892,942, respectively, for its proportionate share of the City's net pension liability. The June 30, 2022 net pension liability of the City’s Miscellaneous Plan was measured as of June 30, 2021 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021. The Transportation Enterprise Fund’s proportion of the City's net pension liability was based on the Transportation Enterprise Fund’s fiscal year 2021 actual contributions to the City's pension plan relative to the total contribution of the City’s Miscellaneous Plan.
The June 30, 2021 net pension liability of the City’s Miscellaneous Plan was measured as of June 30, 2020 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020. The Transportation Enterprise Fund’s proportion of the City's June 30, 2020 net pension liability was based on the Transportation Enterprise Fund’s fiscal year 2020 actual contributions to the City's pension plan relative to the total contribution of the City’s Miscellaneous Plan.
At June 30, 2022 and 2021, the Transportation Enterprise Fund’s proportion of the City’s Miscellaneous Plan was 2.89% and 3.14% respectively.
Packet Page 372 of 812Attachment 9 Page 26 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
22 Note 6 Pension Plan (continued)
Actuarial Assumptions - The total pension liability in the June 30, 2020 and 2019 Miscellaneous Plan actuarial valuations were determined using the following actuarial assumptions:
2022 2021
Valuation Date June 30, 2020 June 30, 2019
Measurement Date June 30, 2021 June 30, 2020
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Method Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%7.15%
Inflation 2.50%2.50%
Payroll Growth 2.75%2.75%
Projected Salary Increase (1)3.15% - 11.25%3.15% - 11.25% Investment Rate of Return (2)7.000%7.000%
Mortality (3)Derived using CalPERS’ Derived using CalPERS’ Membership Data for all Funds Membership Data for all Funds (1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3)2022 and 2021 - The mortality table used was developed based on CalPERS’ specific data.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rate include 15 years of projected mortality improvement using 90% of scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 can be found on the CalPERS website.
Other actuarial assumptions used in the June 30, 2020 valuation were based from the CalPERS Experience Study and Review of Actuarial report from December 2017 that can be found on the CalPERS website at:
www.calpers.ca.gov .
i. Discount Rate – As of June 30, 2022 and 2021, the discount rates used to measure the total pension liability were both 7.15% for the City’s Miscellaneous Plan. 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.
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City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
23 Note 6 Pension Plan (continued)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of 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 PERF fund. The expected rate of return was set by calculating the rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as followed:
Asset Class (1)
Target
Allocation
Real Return
Years 1-10 (2)
Real Return
Years 11+ (3)
Target
Allocation
Real Return
Years 1-10 (2)
Real Return
Years 11+ (3)
Global Equity 50.0%4.8%6.0% 50.0%4.8%6.0%
Fixed Income 28.0%1.0%2.6% 28.0%1.0%2.6%
Inflation Assets 0.0%0.8%1.8%0.0%0.8%1.8%
Private Equity 8.0%6.3%7.2%8.0%6.3%7.2%
Real Estate 13.0%3.8%4.9% 13.0%3.8%4.9%
Liquidity 1.0%0.0%-0.1%1.0%0.0%-0.1%
Total 100%100%
(1) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.00% used for 2022 and 2021. (3) An expected inflation of 2.92% used for 2022 and 2021. 20212022
Packet Page 374 of 812Attachment 9 Page 28 of 35
City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
24 Note 6 Pension Plan (continued)
Sensitivity of the Transportation Enterprise Fund’s proportionate share of the City’s Net Pension Liability to Changes in the Discount Rate - As of June 30, 2022 and 2021, the following presents the net pension liability of the Transportation Enterprise Fund’s proportionate share of the City of Fairfield’s net pension liability as of the measurement date, calculated using the discount rates of 7.15% for both years, as well as what the Transportation Enterprise Fund’s proportionate share of the City’s net pension liability 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:
2022 2021
1% Decrease 6.15%6.15%
Net Pension Liability 3,414,209$ 4,752,084$
Current Discount Rate 7.15%7.15%
Net Pension Liability 1,873,582$ 2,892,942$
1% Increase 8.15%8.15%
Net Pension Liability 930,251$ 2,134,952$
Pension Plan Fiduciary Net Position- Detailed information about the City’s collective pension plans’ fiduciary net position is available in the separately issued CalPERS financial report.
C. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022 and 2021, the Transportation Enterprise Fund recognized pension expense of $138,564 and $422,755, respectively. At June 30, 2022 and 2021, the Transportation Enterprise Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date 322,073$ 310,676$ Differences between actual and expected experience 90,836 68,913 Net differences between projected and actual earning
on plan investments (800,357)$ 68,814
Total 412,909$ (800,357)$ 448,403$ -$
2022 2021
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City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
25 Note 6 Pension Plan (continued)
The amount of $322,073 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. The amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal
Year Ended
2023 (147,859)$
2024 (155,442)
2025 (194,059)
2026 (212,161)
Total (709,521)$
Note 7 Contingent Liabilities
Federal and State grant funds were received by the City to be expended for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to a request for reimbursement for expenditures disallowed under the terms of the grants. The amount, if any, of expenditures that may be disallowed by the granting agencies related to this program cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
Note 8 Risk Management
The City is partially self-insured for workers’ compensation insurance with $750,000 retention per occurrence and general liability coverage with $750,000 retention per occurrence and is a member of joint power authorities for the coverage above and beyond the retention levels (see below). The City is completely self-insured for unemployment insurance, short-term disability insurance, other post-employment benefits (OPEB) and dental insurance coverage programs.
For worker’s compensation, the City purchases excess insurance coverage (above and beyond the retention limit of $750,000) from a governmental joint powers authority up to statutory limits per occurrence. This joint power authority is Prism formally known as the California State Association of Counties Excess Insurance Authority, a risk sharing pool of California public agencies, dedicated to controlling losses and providing effective risk management.
For general liability, the City is a member of the California Joint Powers Risk Management Authority (CJPRMA), a joint exercise of powers agency which provides the City with additional $40,000,000 liability coverage over and above the self-insured retention of $750,000. A property insurance policy is purchased by the member entities of CJPRMA. The deductible amount is $250,000. The CJPRMA is a legal entity separate and distinct from its member entities, as permitted by the California Government Code. Please refer to the City ’s Annual Comprehensive Financial Report for additional information regarding the City’s self-insured program.
Note 9 Subsequent Event
In July of 2022, CalPERS announced a net investment return of negative 6.1% for fiscal year ending 2021-22. This, along with the change in the discount rate to 6.8%, will negatively impact the GASB 68 Net Pension Liability in future reporting periods. As the investment pool experienced gains in fiscal year 2021 resulting in a drastically reduced liability in fiscal year 2022, the City expects the inverse to be true in fiscal year 2023 as all gains were lost in fiscal year 2022. See Note 13 in the City’s ACFR for further discussion on the GASB 68 Net Pension Liability and details as to the timing of the actuarially driven reporting process.
Packet Page 376 of 812Attachment 9 Page 30 of 35
City of Fairfield
Transportation Enterprise
Required Supplementary Information
Schedule of the Transportation Enterprise Fund’s Proportionate Share Of the City’ Miscellaneous Plan Net Pension Liability
26 2015 2016 2017 2018 2019 2020 2021 2022
Transportation Enterprise Fund's proportion to the City's net pension liability 2.62%2.62%2.61%2.76%2.87%3.26%3.14%2.89% Transportation Enterprise Fund's proportion share of the City's net pension liability 1,607,827$ 1,737,605$ 2,061,010$ 2,394,419$ 2,434,218$ 2,657,008$ 2,892,942$ 1,873,582$ Covered payroll (from prior year)638,382 642,096 650,352 661,510 716,042 790,193 953,437 963,306 Transportation Enterprise Fund's proportion share of the City's net pension liability as a percentage of covered payroll - employee payroll 251.86% 270.61% 316.91% 361.96% 339.95% 336.25% 303.42% 194.50% Miscellaneous Plan fiduciary net position as a percentage of the total pension liability 77.53% 75.96% 72.24% 71.05% 71.81% 71.32% 70.27% 80.81% Measurement date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 * Fiscal year 2015 was the first year of implementation (GASB 68), therefore, only eight years are shown.
Change of Assumptions - At its December 2016 meeting, the CalPERS Board of Administration lowered the Miscellaneous Plan’s discount rate from 7.50% to 7.00% using a three-year phase-in beginning with the June 30, 2016 valuation. The minimum employer contributions for Fiscal Year 2018-19 were calculated using a discount rate of
7.375%; the fiscal year 2019-2020 minimum employer contributions will be calculated using a discount rate of 7.25%; and the fiscal year 2020-2021 (and all years going forward) minimum employer contributions will be calculated using a discount rate of 7.0%. In the GASB 68 accounting valuation report for the City's Miscellaneous Plan for the period ended June 30, 2017, (which is used for calculating the net pension liability) the discount rate has been reduced from 7.65% to 7.15% accordingly.
Last Ten Years*
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City of Fairfield
Transportation Enterprise
Required Supplementary Information
Schedule of Contributions
27 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contributions 117,699$ 128,994$ 145,721$ 173,526$ 213,754$ 295,595$ 310,676$ 322,073$ Contributions in relation to the actuarially determined contributions (117,699) (128,994) (145,721) (173,526) (213,754) (295,595) (310,676) (322,073) Contributions deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ Covered payroll (from current year)642,096 650,352 661,510 716,042 790,193 953,437 963,306 927,181 Contributions as a percentage of covered payroll 18.33%19.83%22.03%24.23%27.05%31.00%32.25%34.74% * Fiscal year 2015 was the first year of implementation (GASB 68), therefore, only eight years are shown.
Last Ten Years*
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City of Fairfield
Transportation Enterprise
Schedules of Operating Expenses by Function
For the Years Ended June 30, 2022 and 2021
28 2022 2021
Operations:
Services 1,176,921$ 1,254,011$
Fuels and lubricants 1,425,039 841,611
Casualty and liability costs 425,841 423,122
Utilities 169,217 196,761
Purchased transportation 4,694,938 4,778,615
Materials and supplies 24,399 1,832
Miscellaneous 67,218 222,436
Total operations 7,983,573 7,718,388
Vehicle maintenance:
Services 2,541,483 2,673,345
Total vehicle maintenance 2,541,483 2,673,345
General and administration:
Salaries 468,995 462,805
Fringe benefits 282,216 534,362
Services 898,609 861,328
Materials and supplies 10,913 21,989
Miscellaneous 71,524 55,987
Total general and administration 1,732,257 1,936,471
Depreciation 1,214,356 1,418,907
Total operating expenses 13,471,669$ 13,747,111$
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2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 29 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, the Transportation Development Act, California Government Code §8879.55, and State Senate Bill 88 (2007) To the Honorable Mayor and Members of the City Council
of the City of Fairfield
City of Fairfield, California
We have audited, 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, the financial statements of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City of Fairfield, California (City), as of and for the years then ended June 30, 2022 and 2021, and the related notes to the financial statements, which collectively comprise the City’s Transportation Development Act Article 4 and 8 Program (TDA Program)’s basic financial statements and have issued our report thereon dated December 15, 2022. Our report included an emphasis of matter paragraph noting that the financial statements present only the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City’s TDA Program and do not purport to, and do not, present fairly the financial position of the City as of the years ended June 30, 2022 and 2021, the changes in its financial position, or, where applicable, its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
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.
Packet Page 380 of 812Attachment 9 Page 34 of 35
30 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 have not been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the applicable provisions of §6666 and §6667 of Title 21, Chapter 3, Subchapters 2 of the California Code of Regulations, California Government Code §8879.55 (Public Transportation Modernization, Improvement, and Service Enhancement Account), and California State Senate Bill 88 (2007) et seq., 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 or §6666 and §6667 of Title 21 of the California Code of Regulations, California Government Code §8879.50 and California State Senate Bill 88(2007), et seq.
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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Sacramento, California
December 15, 2022
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CITY OF FAIRFIELD
RESOLUTION NO. 2023-06
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARFIELD APPROVING THE CITY’S FISCAL YEAR 2021-22 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND THE DRAFT SCHEDULE OF
EXPENDITURES FOR FEDERAL AWARDS REPORT (SINGLE AUDIT) AND OTHER REPORTS
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. Pursuant to Section 37208 (c) of the Government Code, the Fiscal Year 2021- 2022 Annual Comprehensive Financial Report and Draft Schedule of Expenditures for Federal Awards Report (Single Audit), and other reports is hereby approved and ratified.
Section 2. The city manager and director of finance are hereby authorized to take all actions necessary to implement this resolution.
PASSED AND ADOPTED this 17th day of January, 2023, by the following vote:
AYES: COUNCILMEMBERS: MOY / BERTANI / CARR /PANDURO / TONNESEN/ VACCARO / WILLIAMS
NOES: COUNCILMEMBERS: ________________________________________________
ABSENT: COUNCILMEMBERS: ________________________________________________
ABSTAIN: COUNCILMEMBERS: ________________________________________________
________________________________________________
MAYOR
ATTEST:
____________________________
CITY CLERK
Packet Page 382 of 812Attachment 10 Page 1 of 1
Agenda Item No: 11.
AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:First Reading and Introduction of Ordinance 202301 of the City Council of the City of Fairfield Amending Section 2.7 to Chapter 2, Article II of the Fairfield Municipal Code Regarding Appointment, Removal, and Term of Office of the City Manager to Reflect the Current Number of Council Members Required for a Majority Vote, Remove the Requirement for an Indefinite Term, and Remove the Gender Classification of the City Manager
RECOMMENDED ACTION
Waive full reading, read by title only, and introduce ordinance for first reading.
STATEMENT OF ISSUE
The purpose of the proposed ordinance is to amend Section 2.7 of the Fairfield Municipal Code, which provides for the process of appointment, term, and removal of the city manager.
DISCUSSION
Section 2.7 of Chapter 2, Article II of the Fairfield Municipal Code (“Term of office; removal by city council generally; salary after removal”) governs the appointment, term, and removal of the city manager. This section needs to be updated to reflect the following:
• A change from a fivemember City Council to a sevenmember City Council; • An update in the law which makes indefinite terms for city employees illegal; and • Removing gender pronouns to reflect societal changes.
Under the current Section 2.7, the city manager position has an indefinite term and may be removed by a threemember vote of the City Council. This allowed a fivemember City Council to remove the City Manager with a majority vote. Staff proposes to amend Section 2.7 to require a fourmember vote of the City Council to reflect the change to a sevenmember City Council.
Section 2.7 also currently requires that the term of the city manager position shall be indefinite.
However, in 2015 the State Legislature passed Government Code section 53260, which governs the maximum settlement amount that may be paid to a city employee upon termination. This law requires Packet Page 383 of 812
Agenda Item No: 11.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City Manager SUBJECT:First Reading and Introduction of Ordinance 202301 of the City Council of the City ofFairfield Amending Section 2.7 to Chapter 2, Article II of the Fairfield Municipal CodeRegarding Appointment, Removal, and Term of Office of the City Manager to Reflect theCurrent Number of Council Members Required for a Majority Vote, Remove theRequirement for an Indefinite Term, and Remove the Gender Classification of the CityManagerRECOMMENDED ACTIONWaive full reading, read by title only, and introduce ordinance for first reading.STATEMENT OF ISSUEThe purpose of the proposed ordinance is to amend Section 2.7 of the Fairfield Municipal Code, whichprovides for the process of appointment, term, and removal of the city manager.DISCUSSIONSection 2.7 of Chapter 2, Article II of the Fairfield Municipal Code (“Term of office; removal by citycouncil generally; salary after removal”) governs the appointment, term, and removal of the citymanager. This section needs to be updated to reflect the following: • A change from a fivemember City Council to a sevenmember City Council;• An update in the law which makes indefinite terms for city employees illegal; and • Removing gender pronouns to reflect societal changes. Under the current Section 2.7, the city manager position has an indefinite term and may be removed bya threemember vote of the City Council. This allowed a fivemember City Council to remove the CityManager with a majority vote. Staff proposes to amend Section 2.7 to require a fourmember vote of theCity Council to reflect the change to a sevenmember City Council. Section 2.7 also currently requires that the term of the city manager position shall be indefinite.
However, in 2015 the State Legislature passed Government Code section 53260, which governs the maximum settlement amount that may be paid to a city employee upon termination. This law requires that all public employee contracts be set for a fixed term. Therefore, staff proposes that the term “indefinite” be stricken from Section 2.7.
Finally, Section 2.7 is currently written using male gender pronouns. To reflect the changes in our society in which women or individuals with different gender identities may serve as city manager, staff proposes to amend Section 2.7 to be gender neutral.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may elect not to adopt this ordinance, but the result would allow a minority of the council to remove the city manager, and Section 2.7 would be out of compliance with State Law.
STAFF CONTACT
Marian Slocum, Associate City Attorney
(213) 6268484
[email protected]
COORDINATED WITH
City Attorney's Office
ATTACHMENTS:
Description
Proposed Ordinance
REVIEWERS:
Reviewer Action Date
Beavers, Esther Approved 1/9/2023 4:20 PM
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CITY OF FAIRFIELD
ORDINANCE NO. 2023-01
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD TO AMENDING SECTION 2.7 TO CHAPTER 2, ARTICLE II OF THE FAIRFIELD MUNICIPAL CODE REGARDING APPOINTMENT,
REMOVAL, AND TERM OF OFFICE OF THE CITY MANAGER TO REFLECT THE CURRENT NUMBER
OF COUNCIL MEMBERS REQUIRED FOR A MAJORITY VOTE, REMOVE THE REQUIREMENT OF
AN INDEFINITE TERM, AND REMOVE GENDER CLASSIFICATION OF THE CITY MANAGER
THE CITY COUNCIL OF THE CITY OF FAIRFIELD DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 2.7 of Chapter 2 (Administration), Article II (City Manager) of the Fairfield Municipal Code is hereby amended as follows:
“2.7 Term of office; removal by city council generally; salary after removal.
The city council shall appoint the city manager and may remove the city manager by a four - member vote. At least thirty days before such removal shall become effective, the city council shall by a four-member vote of its members adopt a preliminary resolution stating the reason for removal. By the preliminary resolution the council may suspend the city manager from duty, but shall in any case cause the city manager to be paid forthwith any unpaid salary balance and the monthly salary of the city manager shall continue to be paid for the next calendar month following the month of the adoption of the preliminary resolution. The city council, in removing the city manager, shall use its uncontrolled discretion and its action shall be final.”
SECTION 2. This Ordinance shall be effective 30 days following its adoption by the City Council.
A summary of this Ordinance shall, within 15 days after passage, be published in accordance with Section 36933 of the Government Code of the State of California with the nam es of the City Councilmembers voting for and against it.
Packet Page 385 of 812Attachment 1 Page 1 of 2
ORD. NO. 2023-01