City of Fairfield, California
Popular Annual Financial Report
Fiscal Year Ended June 30, 2024
Prepared by: Finance Department – Accounting Division
P opular Annual Financial Report for FY 2023-2024
Introduction
A Message to Our Readers
Table of Contents
→ 2 - C ity Council and Elected Officials
→ 2 - M anagement Leadership Team
→ 3 - C ity and Government Profile
→ 5 - C ity and Demographic Information and
Major Employers
→ 6 - E conomic Summary
→ 7 - S ummary Entity Financial Statements
→ 11 - F inancial Overview and Long Term
Outlook for the City’s General Fund
→ 13 - Major Revenue Sources
→ 15 - Financial Long Term Outlook - Other Funds
→ 17 - Cash and Investments
→ 18 - Long-Term City Bonded Debt and
Obligations
→ 19 - Capital Assets
→ 20 - Capital Improvement Plan
For additional details regarding information contained
in this PAFR, you can r eview 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, 202 4. 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
(ACFR) for the fiscal year ended 2023-2024.
Th
e City of Fairfield’s ACFR for the fiscal year ended
2022-2023 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 addition, the City has been awarded the
Triple Crown, having achieved all three of GFOA’s top
certifications including the Popular Annual Financial
Reporting Award and the Distinguished Budget
Presentation Award.
In o
rder to be awarded a Certificate of Achievement, a
government unit must publish an easily readable and
efficiently organized ACFR, whose contents conform to
program standards. Such a n 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 for its PAFR for the prior
fiscal year.
E
xcept 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.
P opular Annual Financial Report for FY 202 3-2024
City Council and Elected Officials
Management Leadership Team
David Gassaway John Sturdee John Furtado
City Manager Fire Chief Director of Finance
D
avid Lim Farbod Pirouzmand Sanjay Mishra
City Attorney Director of Human Resources Director of Public Works D
avid Zellers LaTanna Jones Savita Chaudhary
Director of Community Director of Housing Services Assistant City Manager/ Development Director of Information Technology
Kr
istina Kaunzinger Dan Marshall
Director of Parks and Recreation Police Chief
2 P opular Annual Financial Report for FY 2023-24
City Profile and Demographic Information
City Profile
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 , Waterman’s hometown . 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 the two largest metropolitan areas of Northern California, Fairfield bridges the gap between the San Francisco Bay Area and the Sacramento metropolitan region. The Napa and Sonoma wineries lie within an hour to the west, and Lake Tahoe two hours to the east. 3 P opular Annual Financial Report for FY 2023-24
City Profile and Demographic Information
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 elected by district. They all serve four- year, staggered terms. The City has two citizen commissions Planning and Youth, and five oversight and advisory committees, all whose members are appointed by Council to a fixed term. They are the Landscape Oversight Committee (seven members), the CDBG Advisory Committee (five members), the Golf Advisory Board (six members), the Measure P Oversight Committee (five members) and the Rockville Hills Regional Park Citizen Advisory Committee (seven members). The City Clerk and Treasurer are directly elected. The City Council appoints the City Manager and City Attorney. The City Manager appoints department heads.
T
he City is organized into ten departments: Public Works, Police, Fire, Finance, Human Resources, Information Technology, Community Development, Parks and Recreation, Housing Services, and City Manager’s Office (CMO) ; with the CMO including Clerk and Legal offices . For reporting purposes, the financial statements present CMO and Human resources under Administration while Information Technology is reported in an Internal Service Fund.
The chart below shows the City’s full -time staff levels during the past ten years. In FY 23 -24, 619 full -time equivalent positions were authorized, of which 13 positions have been frozen. The City’s employees are 0.5% of the total population of the C ity. 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 i
527 534 541 548 558 571
585
610 613 619
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Authorized Full-Time Employees
4 P opular Annual Financial Report for FY 2023-24
City Profile and Demographic Information
City and Demographic Information and Major Employers
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Financial and Budgetary Information
Economic Summary
Belo
w are the changes in the financial market as of June 30, 2024:
Financial Markets Index / Rate Fiscal Year Change
Dow Jones 39,119 4,711
S&P 500 4,450 1,010
2 Year Treasury 4.720% -0.175%
30-Year Home Mortgage 7.07% 0.050%
E
mployment
W
hile the United States has been trending at full employment (unemployment rate of 4 -6%) over the last couple of years, the rate of unemployment has seen a slight uptick during the same period, indicating a potentially cooling job market. There has been an increase in unemployment in the region of 0.4% and job openings while still strong have fallen to the lowest level in more than two years.
Unemployment Rate Fiscal Year Change
Uni
ted States 4.1% 0.5%
California 5.2% 0.6%
Solano County 5.1% 0.4%
Fairfield 5.1% 0.4%
I
nflation
I
nflation began to stabilize but prices continue to be high and impacts on discretionary spending of average consumers are anticipated to continue to be seen in FY 24 -25. The personal savings rate has also started to come down as consumers use savings to cover higher costs. The personal savings rate was 5.2% for June 2024 and had dropped to 4.8% by September 2024 which is lower than the long-term average of 8.58%.
Inflation Rates Rate Fiscal Year Change
Bay Area CPI 3.2% 0.3%
Turner Building CPI 0.9% -0.3%
Personal Savings Rate 5.2% 0.2%
Oil Prices (as of 6/30/24) $82 $11
6 Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information
Government-Wide Financial Analysis
2024 2023 $ %
Curr
ent and other assets 519$ 495$ 24$ 5% Capital assets 543 529 14 3%
Total assets 1,062 1,024 38 4%
Total deferred outflows of resources 79 81 ( 2) -2%
Current and other liabilities 55 52 3 6%
Long term liabilities 407 387 20 5%
Total liabilities 462 439 23 5%
Total deferred inflows of resources 18 18 - 0%
Net position:
Net investment in capital assets 469 460 9 2%
Restricted 225 206 19 9%
Unrestricted (33) (18) (15) -83%
Total net position 661$ 648$ 13$ 2% Change from 2023Totals - All Funds
Summary Statements of Net Position (in millions) - All Activities • C
urrent and Other Assets - This includes unrestricted cash and investments and items such as receivables, inventory, land held for development, and prepaid items expected to be converted into cash within one year. • C
apital Assets – This consist of land, buildings, improvements, infrastructure, vehicles, equipment, and the right -to- use assets. These items provide services to the community and are not available for future spending. • C
urrent and Other Liabilities - Represents liabilities that are expected to be paid with cash within one year. • L
ong Term Liabilities - Includes the City’s outstanding obligations, encompassing long- term commitments for pensions, Other Post-Employment Benefits (OPEB), compensated absences, leases, subscriptions, outstanding claims, and bonded debt.
• Ne
t Position - Net investment in capital assets re flects the City’s capital assets net of accumulated depreciation and related debt. The restricted portion is limited to externally imposed restrictions for specific uses, such as capital projects, debt service, and community development, and is not available for general operations. The unrestricted portion is available for general use . The deficit amount shown in Governmental Activities results from the City’s outstanding pension obligations.
The City’s Statements of Net Position are shown below for fiscal years 2024 and 2023, including descriptions of items included
( )
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Financial and Budgetary Information
Government-Wide Financial Analysis (Continued)
Description of items in Statement of Activities
Th
e 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 – I ncludes property, sales and transaction, franchise, transient occupancy and business license other taxes, which are described in more detail in a s
ubsequent 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.
The City’s Statement of Activities is shown on the following page (in millions) for FY 202 4 and 2023. 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.
T
he total cost of services for all governmental activities in FY 23 -24 was $216 million, with program revenues covering $77 million (36%), resulting in a net cost of $139 million. The remaining costs were funded by taxes (some of which are earmarked for specific programs) and other revenues, including interest, general entitlements, sale of property, and transfers. The overall cost of services increased by $14 million, primarily due to cost escalations, the impact of negotiated labor agreements, and expanded staffing. Capital expenses rose by $1 million, while internal service fund expenses decreased by $0.7 million. Special Revenue fund expenses increased by $3.8 million, and pension-related expenses grew by $12.5 million.
T
he total cost of all Business-Type activities for the year was $74 million. User payments for the systems totaled $57 million, with receipts from operating and capital grants and contributions amounting to $23 million, primarily for transportation and water utility. This resulted in total program revenues of $80 million, offsetting the cost of these activities. Net position for business -type activities increased by $11 million (including investment earnings and transfers), reaching a total of $170 million.
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Financial and Budgetary Information
Description of items in Statement of Activities (Continued) Statement of Activities (Continued)
H
ousing – Includes Affordable Housing, Community Development Block Grant, Housing Authority and Community Resources.
R
ecreation / Golf – Includes Adult and Youth Activities, Aquatics and the City’s two golf courses. W
ater Treatment Plants – Accounts for the City’s two water treatment plants. T
ransportation – Accounts for the operations of the City’s transit system. 9 Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information
2024 2023 $ %
Rev
enues:
Program Revenues:
Charges for services 69$ 69$ -$ 0%
Operating grants and contributions 39 34 5 15%
Capital grants and contributions 49 32 17 53%
General Revenues:
Property taxes 41 38 3 8%
Sales and transaction taxes 56 58 (2) -3%
Other taxes 20 18 2 11%
Other revenues 29 14 15 107%
Total revenues 303 263 40 15% Expenses:
Administration 13 14 ( 1) -7%
Finance 2 2 - 0%
Police 68 61 7 11%
Fire 38 34 4 12%
Public works 58 54 4 7%
Community development 11 10 1 10%
Housing 16 17 (1) -6%
Parks and recreation 9 9 - 0%
Interest on debt 1 1 - 0%
Water utility 42 40 2 5%
North bay treatment plant 11 10 1 10%
Transportation 12 13 (1) -8%
Golf courses 9 6 3 50%
Total expenses 290 271 19 7% Increase (decrease) in net position 13 (8) 21 -263%
Net position July 1 648 656 (8) -1% Net position June 30 661$ 648$ 13$ 2% Total - All Funds Change from 2023
Summary Statements of Activities (in millions)
+
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Financial and Budgetary Information
$ Variance
Positive 2023
Budget Actual (Negative) Actual
Revenues:
Property taxes 39,125,284$ 40,303,558$ 1,178,274$ 37,917,393$ Sales tax 30,561,166 30,849,017 287,851 31,765,373 Transaction and use taxes (Measure P) 25,361,000 25,376,999 15,999 25,750,284 Utility and franchise taxes 12,125,169 12,801,025 675,856 11,777,768 Other taxes 6,537,492 6,803,933 266,441 6,679,054 Licenses, permits and fines 3,333,657 3,864,615 530,958 3,620,409 Intergovernmental 465,675 1,225,062 759,387 544,711 Charges for services 7,346,916 5,713,622 (1,633,294) 6,645,281 Investment income 747,396 2,852,432 2,105,036 1,507,985 Net increase in fair value of investments 3,000,000 1,440,376 (1,559,624) (111,765) Miscellaneous 2,647,859 2,612,957 (34,902) 4,045,243 Total Revenues 131,251,614 133,843,596 2,591,982 130,141,736 Expenditures:
Current:
Administration 7,171,904 7,970,598 (798,694) 6,409,959 Finance 1,594,117 1,382,165 211,952 1,659,569 Police 55,654,081 54,778,631 875,450 54,672,405 Fire 31,243,739 31,207,998 35,741 29,299,880 Public works 19,315,343 19,016,224 299,119 17,250,475 Parks and recreation 8,723,476 7,210,383 1,513,093 7,224,619 Community development 5,979,033 5,974,141 4,892 5,441,017 Non-departmental 2,645,899 1,382,593 1,263,306 5,249,441 Capital outlay - 7,582,319 (7,582,319) 211,309 Debt service:
Principal retirement - 915,099 (915,099) 433,397 Interest - 41,774 (41,774) 19,194 Total Expenditures 132,327,592 137,461,925 (5,134,333) 127,871,265 Excess revenues over expenditures (1,075,978) (3,618,329) (2,542,351) 2,270,471 Other Financing Sources (Uses):
Leases - 7,156,885 7,156,885 200,309
Subscriptions - 425,434 425,434 200,309 Transfers in 6,111,446 2,383,200 (3,728,246) 1,887,753 Transfers out (5,754,285) (6,355,107) (600,822) (3,838,556) Total other financing sources (uses) 357,161 3,610,412 3,253,251 (1,550,185) Net change in fund balance (718,817) (7,917) 710,900 720,286 Fund Balance - Beginning of Year 57,326,455 57,326,455 - 56,806,477 Fund Balance - End of Year 56,607,638$ 57,318,538$ 710,900$ 57,526,763$ 2024
Financial Overview – General Fund
The General Fund revenues exceeded the final budget by $2.6 million (1.97%), primarily due to higher sales and property taxes, utility and franchise taxes, and other miscellaneous revenues. These increases were partially offset by lower-than-expected charges for services, licenses, permits, and fines. 11 Popular Annual Financial Report for FY 2023-2024
Financial and Budgetary Information
Financial Long Term Outlook – General Fund
General Fund Forecasted Trend
(In Millions)
FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 FY28-29
Actuals Budgeted Budgeted Forecasted Forecasted Forecasted Ongoing Revenue 143.6 139.6 141 145.6 150.5 155.3
Ongoing Expenses 143.6 147.9 150.00 155.00 160.6 166.9
Operating (Deficit) Surplus - -8.2 -9.0 -9.4 -10.1 -11.5 One-Time Funds 4.3 8.3 7.4 - - -
Ending Reserves 57.3 57.4 55.8 46.4 36.3 24.8
% of Expenditures 40% 39% 37% 30% 23% 15%
The City was able to maintain General Fund reserves at the City Council’s established level of 20% of expenditures during FY 23-24.
The table below provides an overview of the City’s General Fund reserve levels over the next f ive years. The City previously projected a structural deficit averaging $20 million annually, primarily due to increasing costs related to staffing. These costs included cost of living adjustments, additional positions, and higher pension costs driven by CalPERS investment volatility, which increased pension premiums. Other contributing factors included adequately funding internal service charges and slowing revenue growth due to a cooling economy. In response, under the Council's direction, City staff reevaluated expenditures, implemented efficiency improvements, mandated cost cuts across departments, and where feasible realigned resources. The City has also identified and acted on opportunities to increase revenues, both through new revenue streams and adjustments to existing ones, effectively cutting the projected deficits by over 50%, staff continues to look at ways to address the long-term stability of the City. $40
$31 $25
$13
$7
$18
General Fund Revenues by Category
FY 2023-24
(in Millions)
Property Taxes 30%
Sales Tax 23%
Measure P Taxes 19%
Utility / Franchise Taxes
10%
Vehicle / Other Taxes 5%
Other 13%
The General Fund’s major revenue sources are primarily derived from taxes (86.8%) including property and sales taxes / Measure P local taxes, utility users and franchise taxes, transfer and vehicle taxes, and hotel taxes. The remaining 1 3.2% includes revenues such as licenses and permits, charges for services, miscellaneous income, and interest/rental income.
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. $55
$31
$19
$11
$6
$7
$6 $$8
General Fund Expenditures by Department
FY 2023-24
(in Millions) Police 38%
Fire 22%
Public Works 13%
Admin/Finance/Non-Dept
8%
Transfer Out 4%
Parks and Recreation 5%
Community Development
4%
Debt Service 1%
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Financial and Budgetary Information
Major Revenue Sources
Property Taxes – In FY 23 -24, Fairfield property values increased by approximately 7.1% which is more than the countywide growth of 5.7%. The impact of annual CPI growth equated to 24.1% of the change, while net property transfer and parcel additions/deletions were 23.5%. The impact of unsecured value change was 23.6% of the overall increase and this was primarily driven by Solano County issuing possessory interest bills to apartment complexes that were purchased for low -income households but that are still receiving market rate from tenants. They will continue to receive possessory interest bills for those units unless occupied by a qualified household. Residential is the single largest property tax category representing 70% of the City’s valuation. Due to the price decreases reported last year, there were additional homes added for temporary review and monitoring per Proposition 8 (temporary reductions in assessed value in cases where real property suffers a decline in value) bringing the value outstanding to $137 million with the number of homes at 3.3% of all homes in the City.
Commercial
11%
Industrial
11% Other
3%
Residential
70%
Unscecured
5%
Net Taxable Value % by Category
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Financial and Budgetary Information
Major Revenue Sources (Continued)
Sales Taxes - Sales and local sales transaction taxes are the City’s other major sources of revenue. The sales tax rate in Fairfield is 8.375%. Of this, 1% is the "local" or City share and 1% reflects the local use tax. In California, sales tax performance for FY 23 -24 saw a decline of 1.3%. The City of Fairfield also experienced a decline in sales tax that totaled 2.9% for FY 23 -24, with decreases of 8% and 5% in general consumer goods and autos and transportation industry groups respectively. Measure P also saw a decline in FY 23 -24. The chart above shows the change in sales tax for the past 10 years reflecting an average growth of 4%.
-3%
3%
15%
13%
-2%
6%
2%
-2%
8%
2%
4%
-5% 0% 5% 10% 15% 20%
23-24
22-23
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
Average
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Financial and Budgetary Information
Financial Long Term Outlook – Other Funds
Wa
ter Funds
The last water rate increase went into effect in 2021. A water master plan is currently underway which will address future capital projects, align operation costs, address debt coverage ratios, and drive potential rate changes in the future. Continued capital needs are being addressed utilizing reserve funds.
Golf Funds
The total number of taxable rounds increased at the City’s golf courses by 3.9% during the past fiscal year. Additionally, the change in operations now includes restaurant revenue and provide an overall increase in revenue of 30%. Overall expenditures grew at a similar rate, also accounting for the increased cost related to restaurant operations. For the fourth consecutive year, the courses did not require additional support from the City. Golf course bonds were paid off in July 2023. The golf courses are going to continue utilizing the excess working capital to address deferred maintenance needs and ensure the courses continue to operate without the assistance of the General Fund.
Transit
Fairfield added a new transportation mode called
microtransit early in FY 23 -24 to better meet
Fairfield’s current transportation needs and hedge
against unsustainable service cost inflation.
California’s farebox recovery requirements have
been deferred due to the COVID -19 pandemic with
no set date for reinstatement. Forecast risks include
decreased funding and continued increases in
operating costs.
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Financial and Budgetary Information
Financial Long-Term Outlook – Other Funds (Continued)
I
nternal 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 the liability owed over time so other funds are not heavily affected in any year. The City’s Worker’s Compensation and General Liability funding needs significantly increased due to the number and size of claims and settlements. The General Liability Fund specifically was impacted by the performance of the City’s insurance pool which also is seeing an increased number and size of claims and settlements that resulted in a one -time assessment and increased premiums to address the funding needs. The City’s Compensated Absences liability also continues to grow due to the addition of more staffing, compounded by labor contract cost of living adjustment increases applied to those outstanding balances. It is currently 32% funded. See Notes 11 and 15 in the City’s FY 23 -24 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, 202 4, are listed below:
(1, 2) The cash reserve represents the cash in the City’s OPEB fund at June 30, 202 4. The liability represents the actuarial accrued liability (as presented in the Required Supplementary Information). (3) Represents available cash in these specific funds at June 30, 202 4. Does not include other insurance fund balances that do not relate to Workers’ Compensation, General Liability, or OPEB.
Workers'
Compensation
General
Liability
Other Post-
Employment
Benefits (OPEB)(1,2)
Compensated
Absences
(Governmental
Activities only) Combined
Cash Reserve(3) $10,347,898 $468,550 $342,115 $7,237,572 $18,396,135 Actuarial Liability $12,277,000 $6,970,000 $115,873 $22,521,855 $41,884,728 % of Liability Funded 84% 7% 295% 32% 44%
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Financial and Budgetary Information
Cash and Investments
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 $ 7 million in bank balances and $ 8 million in bond reserves in its California Asset Management Program (CAMP) portfolio as of 6/30/2 024. See Note 4 in the City’s FY 23-24 ACFR for additional information regarding the City’s investments.
Grand Percent
Summary by Maturity LAIF CA MP Chandler PFM Total of Total 0-1 month 9,465,002$ 87,051,691$ 981,741$ 943,417$ 98,441,851$ 25% 1-12 months 36,633,161 14,111,885 50,745,046 13%
1-2 years 32,405,203 61,228,426 93,633,629 24%
2-3 years 30,947,994 73,404,772 104,352,766 26%
3-4 years 20,615,244 519,011 21,134,255 5%
4-5 years 28,537,740 631,943 29,169,683 7% Total Market Value 9,465,002$ 87,051,691$ 150,121,083$ 150,839,454$ 397,477,230$ 100% Total Amortized Cost 9,500,000 87,051,691 153,330,279 151,990,637 401,872,607 Amount Market Value Over / (Under) Cost (34,998)$ -$ (3,209,196)$ (1,151,183)$ (4,395,377)$ Estimated GASB 31 YTD Market Value Entry 169,817$ -$ 2,973,143$ 3,564,945$ 6,707,905$ 1.67% % of Portfolio 2.4% 21.9% 37.8% 37.9% 100.0%
Average Maturity (years) 0.60 0.11 2.31 1.91 1.64
Money Market Funds
Grand Percent
Summary by Instrument Type LAIF CAMP Chandler PFM Total of Total Agencies 2,310, 407$ 29,987,325$ 11,162,855$ 43,460,587$ 11% Treasury 5,387,479 87,585,084 102,041,495 195,014,058 49% Medium Term Notes (MTN) 36,914 30,636,979 30,497,347 61,171,240 15% Certificate of Deposits (CDs) 1,090,368 6,194,340 7,284,708 2% Commercial Paper (CP) 620,904 620,904 0%
Supranationals 1,204,426 1,204,426 0%
Money Market (MM) / Other 18,930 87,051,691$ 707,269 943,417 88,721,307 23% Total Market Value 9,465,002$ 87,051,691$ 150,121,083$ 150,839,454$ 397,477,230$ 100% Yield to Maturity 4.48% 5.43% 3.02% 4.24% 4.05%
Trailing 12 month yield 3.92% 5.49% 2.63% 3.57% 3.56%
Money Market Funds Investment Managers
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Financial and Budgetary Information
Long-Term City Bonded Debt and Obligations
The City maintains strong credit ratings on all its debt, with Standard and Poor’s assigning an AA rating to its Pension Obligation Bonds (AAA is the highest rating). The graph below illustrates the City’s long- term obligations (in millions).
The City’s net OPEB liability, which covers retiree health and dental expenses, stands at $115,873. To address this, the City allocated $3.0 million to an internal service fund and established an irrevocable trust in March 2018 to help reduce this liability. The net OPEB liability is tied to a closed plan with 22 members, based on an actuarial study assuming a long- term return rate of 5.25%. Health costs are expected to increase annually from 5.9% until they stabilize at 3.9%, while dental costs are projected to rise at an annual rate of 3%. For further details on the City’s net OPEB liability, refer to Note 15 in the City’s FY 23-24 Annual Comprehensive Financial Report.
The City’s long-term debt and obligations for governmental activities rose during FY 23 -24, reaching an outstanding balance of $303 million as of June 30, 2024. This includes an $18 million increase in net pension liability due to CalPERS’ negative investment returns in FY 22 -23. Meanwhile, long- term obligations for business -type activities decreased by $5 million in FY 23 -24, totaling $123 million, due to regular debt payments throughout the year. For a detailed listing of the City’s outstanding obligations, see Notes 8, 9, 10, 11, and 14 in the City’s FY 23 -24 Annual Comprehensive Financial Report. 2024 2023 2024 2023 2024 2023 General Obligation Bonds 5$ 6$ 5$ 6$ Pension Obligation Bonds 24 25 24 25 Utility-Water Revenue Bonds 92$ 95$ 92 95 Recreational Revenue Bonds 1 - 1 Total City Bonded Debt 29 31 92 96 121 127 Compensated Absences 22 22 3 3 25 25 Claims and Judgments 19 15 19 15 Leases and Subscriptions 12 5 12 5 Net Pension Liability 221 203 28 29 249 232 Total City Obligations 274 245 31 32 305 277 Total City Debt and Obligations 303$ 276$ 123$ 128$ 426$ 404$ Governmental Activities Business-Type Activities
Summary of Long-Term City Bonded Debt and Obligations (in millions) Total
1%
6%
22%
0%
6%
4%
3%
58%
General Obligation Bonds
Pension Obligation Bonds
Utility-Water Revenue Bonds
Recreational Revenue Bonds
Compensated Absences
Claims and Judgments
Leases and Subscriptions
Net Pension Liability
Long Term City Debt and Obligations by Type
18 Popular Annual Financial Report for FY 2023‐2024
Financial and Budgetary Information
Capital Assets
For FY 23‐24, 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 FY 23‐24 include:
HSIP Cycle 9 Adaptive Signal
Control ‐ $3.3 million
Waterman Ozone
Improvements ‐ $2.1 million
HSIP Cycle 9 HAWK Signal ‐ $1.4 million
3 Electric Buses ‐ $3.7 million
Asset Type
Original Cost as
Reported
6/30/2024 % of Total
Net Additions
(Deletions) for
Fiscal Year
Annual
Depreciation
at Cost
Governmental Activities
Land / Work in Progress 55,858,143 $ 5% (13,746,042)$ N/A Buildings / Improvements 316,843,060 27% 22,543,045 7,650,974 Vehicles and Equipment 62,577,559 5% 1,441,816 4,112,569 Infrastructure
Streets 196,252,684 17% 4,481,920 4,223,676 Storm Drains 51,393,722 4% 1,155,267 905,954 Sewer Pipes/Pump Stations 17,869,399 2% 1,005,601 309,072 Streetlights/Traffic Signals 29,349,819 3% 446,406 4 75,547 Bridges/Retention Basins 31,105,369 3% 387,611 527,083 Right‐to‐use Assets 19,348,238 2% 10,054,892 3,106,655 Total Governmental Activities 780,597,993 66% 27,770,516 21,311,530 Business‐type Activities
Water Utility 248,639,669 21% 5,115,055 6,893,376 North Bay Treatment Plant (NBR) 68,914,056 6% 1,234,059 1,662,159 Transit 32,272,477 3% 6,295,509 563,456 Golf 31,842,676 3% (80,510) 315,470 Total Business‐type Activities 381,668,878 33% 12,564,113 9,434,461 Total Capital Assets 1,162,266,871 40,334,629$ 30,745,991$ Less Accumulated Depreciation (619,438,971)
Net Capital Assets 542,827,900$
19 Popular Annual Financial Report for FY 2023‐2024
Financial and Budgetary Information
Capital Improvement Plan
The City’s adopted Capital Improvement Program (CIP) for FY 23‐24 and FY 24‐25 totals $95.7 million and $93.7 million, respectively. The CIP is designed to address community needs, with a particular focus on projects that enhance the City’s economic vitality and quality of life. Key projects include Fire Stations 39 and 36, Police Department expansion, a
nnual street pavement maintenance, water ozone improvements, West Texas Water Main Replacement, high lift pumps and power upgrades, corporation yard electrification, as well as improvements to Allan Witt Park, Linear Trail, and other community and neighborhood parks.
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