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TABLE OF CONTENTS
INTRODUCTORY SECTION PAGE
Controller's Transmittal Letter ..................................................................................................... I City Operating Fund Structure ..................................................................................................... IX City Organizational Chart ........................................................................................................... X Directory of City Officials .............................................................................................................. XI Certificate of Achievement - Government Finance Officers Association ................................... XIII
FINANCIAL SECTION
Independent Auditor's Report ..................................................................................................... 1 Management's Discussion and Analysis (Unaudited) ................................................................. 5 Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ..................................................................................................... 30 Statement of Activities ............................................................................................................ 31 Fund Financial Statements:
Balance Sheet - Governmental Funds ..................................................................................... 34 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................................................................................................................. 35 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................................................................................................................................. 36 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................. 37 Proprietary Fund Financial Statements:
Statement of Net Position .................................................................................................... 38 Statement of Revenues, Expenses and Changes in Fund Net Position ................................ 42 Statement of Cash Flows ......................................................................................................... 44 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position - Fiduciary Funds - Trust and Custodial Funds ........... 48 Statement of Changes in Fiduciary Net Position - Fiduciary Funds - Trust Funds ................ 49 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
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Notes to the Financial Statements: PAGE
Note 1 Summary of Significant Accounting Policies .............................................................. 51 Note 2 Cash and Investments .................................................................................................. 74 Note 3 Property Taxes ............................................................................................................. 90 Note 4 Receivables .................................................................................................................. 91 Note 5 Property, Plant and Equipment - Capital Assets ....................................................... 93 Note 6 Long-Term Liabilities ................................................................................................... 98 Note 7 Interfund Activity ......................................................................................................... 118 Note 8 Defeasances ................................................................................................................. 125 Note 9 Risk Management Fund .............................................................................................. 126 Note 10 Employee Benefit Programs ...................................................................................... 128 Note 11 No-Commitment Debt ................................................................................................ 149 Note 12 Commitments and Contingencies ............................................................................. 150 Note 13 Securities Lending ...................................................................................................... 158 Note 14 Other Information ...................................................................................................... 159 Note 15 Deficit Fund Equity ..................................................................................................... 161 Note 16 Subsequent Events .................................................................................................... 162
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis):
General Fund ..................................................................................................................... 166 Grants Special Revenue Fund ........................................................................................... 168 Notes to the Required Supplementary Information ............................................................. 170 Schedule of Investment Returns - Employees, Fire and Police Retirement Systems ......... 173 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios:
Fire and Police Retirement Systems ................................................................................ 174 Employees Retirement Systems .................................................................................... 176 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
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REQUIRED SUPPLEMENTARY INFORMATION (continued) PAGE
Schedule of Employer Contributions - Pension Trust Funds:
Fire and Police Retirement Systems ................................................................................ 178 Employees Retirement Systems .................................................................................... 178 Schedule of Changes in Net OPEB Liability and Related Ratios 179
OTHER SUPPLEMENTARY INFORMATION
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds ............................................... 182 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ..................................................................................... 184 Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis)
High Speed Rail - Special Revenue Fund ...................................................................... 186 Special Gas Tax - Special Revenue Fund ....................................................................... 187 Measure C - Special Revenue Fund ............................................................................... 188 Community Services - Special Revenue Fund .............................................................. 189 UGM Impact Fees - Special Revenue Fund ................................................................... 190 Low and Moderate Income Housing - Special Revenue Fund .................................... 191 Special Assessments - Special Revenue Fund .............................................................. 192 City Combined - Capital Projects Fund ......................................................................... 193 Nonmajor Enterprise Funds:
Combining Statement of Net Position .............................................................................................. 195 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 196 Combining Statement of Cash Flows ................................................................................................. 197 Internal Service Funds:
Combining Statement of Net Position ............................................................................................... 199 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 200 Combining Statement of Cash Flows ................................................................................................. 201 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
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OTHER SUPPLEMENTARY INFORMATION (continued) PAGE
Fiduciary Funds:
Combining Statement of Fiduciary Net Position - Fiduciary Funds - Pension Trust Funds .............. 203 Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds - Pension Trust Funds .............................................................................................................................................. 204 Combining Statement of Changes in Assets and Liabilities - Custodial Funds ................................. 205
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years ................................................................ 208 Change in Net Position - Last Ten Fiscal Years ......................................................................... 209 Fund Balances, Governmental Funds - Last Ten Fiscal Years .................................................. 211 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years ............................... 212 Gross Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .................................................................................................................... 213 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ....................................... 214 Principal Property Taxpayers - Current Year and Nine Years Ago .......................................... 215 Property Tax Levies and Collections - Last Ten Fiscal Years ................................................... 216 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ................................................... 217 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years ..................................... 219 Direct and Overlapping Governmental Activities Debt - As of January 29, 2020 ................... 220 Debt Coverage Ratio - Airports - Last Ten Fiscal Years ............................................................ 221 Debt Coverage Ratio - Water System - Last Ten Fiscal Years .................................................. 222 Debt Coverage Ratio - Sewer System - Last Ten Fiscal Years ................................................. 223 Pledged Revenue Coverage - Last Ten Fiscal Years ................................................................. 224 Legal Debt Margin Information - Last Ten Fiscal Years ........................................................... 225 Demographic and Economic Statistics - Last Ten Calendar Years .......................................... 226 Principal Employers - Current Year and Nine Years Ago ......................................................... 227 Full Time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years .................................................................................................................... 228 Operating Indicators by Function/Program - Last Ten Fiscal Years ........................................ 229 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ..................................... 231 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
Jerry Dyer Thomas Esqueda
Mayor City Manager
2600 Fresno Street, Suite 2156 - Fresno, California 93721-3622 January 21, 2022
The Honorable Mayor Jerry Dyer and Members of the City Council Distinguished Citizens of the City of Fresno
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Fresno, California (City) for the fiscal year ended June 30, 2021 (fiscal year 2020-2021), with the Independent Auditor’s Report, submitted in compliance with City Charter Section 804(c) and Section 1216. The ACFR has been prepared by the Finance Department in conformance with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB).
Responsibility for both the accuracy of the data, as well as the completeness and fairness of the presentation, including all disclosures, rests with the City. The existing comprehensive structure of internal accounting controls in the City provides reasonable assurance that the financial statements are free of any material misstatements. Since the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
The City recognizes that even sound internal controls have inherent limitations. We believe that the City's internal controls adequately safeguard assets, that the reported data is accurate in all material respects, and that its presentation fairly depicts the City’s financial position and changes in its financial position as measured by the financial activity of its various funds. We are confident that the included disclosures provide the reader with an understanding of the City’s financial affairs.
Accounting principles generally accepted in the United States (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the report of the independent auditors, beginning on page 5.
General Background
The City of Fresno is located near the geographical center of California, approximately 200 miles north of Los Angeles and 170 miles south of the State capital, Sacramento. The City has land area of 115.2 square miles. With over half a million residents ( 546,770 as of January 1, 2021), Fresno is the 5th largest city in California by population, and 34th largest in the nation. The City is part of the Fresno- Clovis metropolitan area, which is the second largest metropolitan area in the Central Valley after Sacramento.
I LETTER OF TRANSMITTAL With its close proximity to Yosemite National Park (60 miles), Fresno also serves as gateway to Sequoia National Park (75 miles), Sierra National Forest (40 miles) and Kings Canyon National Park (75 miles).
Named for the abundant ash trees lining the San Joaquin River, Fresno was founded in 1872 as a railway station of the Central Pacific Railroad before it was incorporated in 1885.
Population Growth
(in thousands)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0 100
200
300
400
500
600
Government and Budget
The City operates under the strong-Mayor form of government. Under this form of government, the Mayor serves as the City’s Chief Executive Officer, appointing and overseeing the City Manager, recommending legislation, and presenting the annual budget to the City Council (Council).
The budget of the City of Fresno, within the meaning and context of Section 1205 of the City’s Charter, must be adopted by Council resolution no later than June 30th of a given year. As provided by Section 1206 of the Charter, any adjustments in the amounts appropriated for the purposes indicated at the department/fund level shall be made only upon a motion to amend the resolution adopted by the affirmative votes of at least five Council members. Administrative changes within the department/fund level may be made without approval of Council within written guidelines established by the City Manager.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
II LETTER OF TRANSMITTAL Industry and Economy
Fresno is the economic hub of Fresno County and the San Joaquin Valley, with much of the surrounding areas in the Metropolitan region predominantly tied to large-scale agricultural production. While agriculture still makes up a large component of the region's employment base (12% of jobs), the Fresno economy continues to diversify, as evidenced by the fact that services (30% of jobs) and government (18% of jobs) employ more people than agriculture. 2010 vs. 2021 Estimated Number of Workers by Industry 2010
Agriculture
14%
Leisure &
Hospitality
8%
Governm…
20%
Finance, Insurance &
Real Estate
4%
Retail
10%
Wholesale
4%
Services
24%
Mining …
5%
Manufactu…
8%
Transportation &
Public Utilities
3%
2021
Agriculture
12%
Leisure &
Hospitality
7%
Government
18%Finance, Insurance &
Real Estate
3%
Retail
10%
Wholesale
4%
Servic…
30%
Mining & …
5%
Manufacturing
6%
Transportation &
Public Utilities
5%
Source: CA Employment Development Department
Distribution is playing a growing role in the City's economy, as evidenced by the Old Navy Pacific Distribution Center, the Ulta Beauty Fulfillment Center, and the Amazon Fulfillment Center. Public sector and healthcare employment are also major contributors to the City’s economy.
Principal Employers (Public & Private Sector)
Employer Full-Time
Employees
Fresno Unified School District 11,492
Community Regional Medical Center 8,800
County of Fresno 7,000
Amazon.com, Inc 7,000
Clovis Unified 6,000
Internal Revenue Service 4,300
City of Fresno 3,889
Saint Agnes Medical Center 2,867
State Center Community College 2,850
California State University, Fresno 2,488
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
III LETTER OF TRANSMITTAL Economic Overview
Agriculture remains one of the backbones of the Fresno area's economy and continues to be robust.
Fresno County’s agricultural strength rests in its diversity with more than 400 commercial crops providing gross production of $7.9 billion in 2020, an increase of 2.6% from 2019.
Almonds surpassed the $1.3 billion mark to beat out grapes for the number one spot on Fresno County’s Top Ten crop ranking.
California produces most of the grapes grown in the United States with 99.5% of raisins coming from Fresno County. Many specialty crops are almost solely produced in California: almonds, kiwi fruit, nectarines, olives, and pistachios. Growers continue to expand into more lucrative products. In 2020, Fresno County exported 72 agriculture commodities to 101 countries around the world. 2020 Diversified Agricultural Base
Almonds
16%
Grapes
13%
Pistachios
10%
Poultry
7%
Milk
6%
Cattle
5%
Garlic
5%
Tomatoes
5%
Oranges
4%
Peaches
3%
Other Crops
26%
Source: Fresno County Agriculture Department
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
IV LETTER OF TRANSMITTAL Fiscal Year 2021 Economic Conditions & Financial Impact Due to the COVID pandemic, the Fresno economy showed mixed results during fiscal year 2021, as is shown in the table below:
Economic Indicator 2020 2021 Change (%)
Assessed Value $38,558,581,315 $40,869,953,930 6.0 %
Taxable Sales $13,590,482,759 $17,279,862,069 27.1 %
Unemployment Rate 12.12% 12.13% 0.06 %
Building Permits 11,484 10,432 -9.2 %
The local economy's mixed results were mirrored in the City of Fresno’s finances. This effect was evident in several City-wide financial measures:
• Total Assets decreased $35.6 million (0.9%) from the fiscal year 2020 year-end Total Assets balance of $4,036.6 million.
• Revenues increased $57.4 million (6.6%) from Revenues for fiscal year 2020, which totaled $873.2 million.
• Expenses grew $141.3 million (17.6%) to $943.6 million. • Total Net Position fell $13.1 million (0.5%) from fiscal year 2020's total of $2,617.8 million.
While the City's overall financial position showed little change, the General Fund displayed a more pronounced change in financial position. Key metrics reflecting this change include:
• Total Assets increased $46.4 million (39.8%) over the fiscal year 2020 Total Assets year-end balance of $116.6 million. Growth in Unrestricted Cash of $31.1 million was the primary driver behind the overall growth in Total Assets.
• Total Liabilities increased $22.9 million ( 151.5%) from the fiscal year 2020 year-end Total Liabilities of $15.1 million. A $9.4 million increase in Advances from Other Funds and an equal increase in Deposits with Others made up the majority of the Total Liabilities' growth.
• Revenues increased $31.4 million (9.1%) from fiscal year 2020's Revenues of $345.6 million.
Significant growth was seen in the economy-driven revenues, such as Sales Tax. • Expenditures increased $64.2 million ( 19.8%) from fiscal year 2020’s $323.8 million Expenditure level. Increases in General Government, Public Protection, and Culture and Recreation expenditures were the cause of the overall increase in General Fund Expenditures.
These results and others are discussed in greater detail in the Management’s Discussion & Analysis, which begins on page 5.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
V LETTER OF TRANSMITTAL How Fresno Compares to the 25 Largest California Cities Despite recent improvement in its financial position, the City of Fresno still lags behind the other large cities in California when it comes to assets available for use to support the City’s population. As the table on page VII demonstrates, the difference between our population figure and our assets per capita figure is one of the biggest among the 25 largest California cities by population. It is important to note that the City’s assets are augmented by the Net Pension Asset, which no other city in the survey possesses. The City of Fresno dropped one notch in its ranking of assets per capita this fiscal year. The lack of assets puts the City of Fresno at a disadvantage when it comes to providing services to its citizens, because there is an inadequate asset base to efficiently address the needs. Thus, it is imperative that fiscal prudence is maintained and the plan to build all assets, especially cash and capital assets, is continued.
Subsequent Events
There were several events that materially affected the City's finances, which occurred after June 30, 2021. Those included:
• Moody's upgraded the City's Lease Revenue Bond from Baa1 to A3, its Pension Obligation Bond rating from Baa2 to Baa1, and its General Obligation rating from A3 to A2 on August 19, 2021. All three ratings maintained a Stable outlook.
• Standard and Poor's upgraded the Airports' bond rating from A- to A on November 2, 2021.
They also upgraded the outlook from Negative to Stable. • In July 2021, the City entered into a two-year repayment agreement with HUD for audit findings. The City made its first repayment under this agreement that same month.
All of these subsequent events are discussed in detail in Note 16, which begins on page 162.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2020 . This was the 28th consecutive year that the City has achieved this prestigious national award. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR whose contents conform to program standards. The ACFR must satisfy both Generally Accepted Accounting Principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of only one year. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, and are submitting it to the GFOA to determine its eligibility for another certificate.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
VI LETTER OF TRANSMITTAL Total Government-Wide Assets per Capita
Top 25 California Cities Comparison
City Total Assets ACFR
Year
Population
California Department of
Finance
As of January 1, 2020
Assets per
Capita
Population
Ranking
Per Capita
Asset Rank
Net Pension
Asset/(Liability)
Los Angeles $ 72,988,295,000 2020 3,923,341 $ 18,604 1 3 $ (8,541,000,000) San Diego $ 16,116,199,000 2021 1,411,034 $ 11,422 2 10 $ (3,513,674,000) San Jose $ 10,872,333,000 2021 1,029,782 $ 10,558 3 11 $ (3,591,797,000) San Francisco $ 43,647,220,000 2020 875,010 $ 49,882 4 1 $ (4,655,538,000) Fresno $ 4,003,075,000 2021 546,770 $ 7,321 5 17 $ 93,198,000** Sacramento $ 5,307,633,000 2020 515,673 $ 10,293 6 12 $ (905,339,000) Long Beach $ 11,068,728,000 2020 467,730 $ 23,665 7 2 $ (1,205,496,000) Oakland $ 3,924,277,000 2021 435,514 $ 9,011 8 13 $ (1,801,374,000) Bakersfield $ 2,785,726,117 2020 397,392 $ 7,010 9 18 $ (441,885,448) Anaheim $ 5,157,247,000 2021 353,468 $ 14,590 10 5 $ (834,846,000) Santa Ana $ 1,819,859,436 2021 331,369 $ 5,492 11 24 $ (702,444,738) Riverside $ 4,393,462,000 2020 324,302 $ 13,547 12 6 $ (599,576,000) Stockton $ 2,520,974,098 2020 320,876 $ 7,857 13 16 $ (536,028,393) Chula Vista $ 2,187,021,255 2021 274,449 $ 7,969 14 15 $ (351,965,194) Irvine* $ 3,260,457,000 2021 271,564 $ 12,006 15 9 $ (153,978,000) Fremont* $ 1,471,705,276 2021 234,239 $ 6,283 16 21 $ (409,107,867) Santa Clarita $ 1,482,565,883 2020 221,572 $ 6,691 17 19 $ (38,909,366) Modesto $ 1,908,354,523 2020 219,294 $ 8,702 18 14 $ (341,835,012) San Bernardino $ 1,112,173,748 2021 216,291 $ 5,142 19 25 $ (473,069,693) Fontana $ 1,316,957,056 2020 213,944 $ 6,156 20 22 $ (161,401,111) Moreno Valley $ 1,263,072,982 2020 209,426 $ 6,031 21 23 $ (72,896,273) Oxnard $ 3,068,135,424 2021 204,675 $ 14,990 22 4 $ (303,952,330) Glendale $ 2,730,674,000 2021 203,834 $ 13,397 23 7 $ (640,356,000) Huntington Beach $ 1,254,251,000 2021 196,874 $ 6,371 24 20 $ (438,377,000) Ontario $ 2,334,210,791 2020 182,004 $ 12,825 25 8 $ (314,099,446) * These cities have Governmental Activities only.
** This figure represents the prefunded Net Pension Asset/overfunding applicable to future years. For peer cities, it represents the underfunding of pension liabilities.
Note: Only figures for each Primary Government were used as of June 30, 2021 AFCRs (2020 when 2021 not available). In cases where Component Units were reflected in separate Columns, Component Unit numbers were excluded.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
VII LETTER OF TRANSMITTAL Acknowledgments
As we approach the end of the second year of this pandemic, it's safe to say that the experience has generally been miserable. However, one positive that has come out of the pandemic is watching the City's employees adapt to the different work environment and find new ways to deliver the products and services that the public expects its government to produce. One such area where that adaptation occurred was in the preparation of this ACFR. Between working from home, new staff members, and technological changes, the previous fiscal year's ACFR proved to be a significant challenge to compile. But, the ACFR team learned lessons from that experience and used those lessons to tweak our plan for compiling this document. The fact that it is being presented to Council earlier than last fiscal year's ACFR not only shows the plan worked, it is a testament to the team's adaptability, creativity, and professionalism. They have definitely earned our appreciation for again "stepping up to the plate" and delivering a quality ACFR. Thank you, ACFR team! We would be remiss if we did not also thank the ACFR contacts in each department throughout the City for working with the Finance Department. Their invaluable contributions made the preparation of this report possible. We wish to also extend our sincere thanks to the staff in all City departments for their cooperative efforts in responding to the many questions and requests for detailed information that accompanies each annual audit.
In addition, we would like to acknowledge the role of Brown Armstrong for their professional support in the preparation of the ACFR. Finally, we want to thank the Mayor, the City Council members, and the members of the City Manager's Office for their continued leadership and support in planning and conducting the City's financial operations.
Respectfully submitted,
Thomas Esqueda Michael Lima
City Manager Finance Director/City Controller
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
VIII LETTER OF TRANSMITTAL CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
IX CITY OPERATING FUND STRUCTURE CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
X CITY ORGANIZATIONAL CHART
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
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XII
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XIV
1 2
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4 MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
For the Fiscal Year Ended June 30, 2021
CITY OF FRESNO, CALIFORNIA
This section of the City of Fresno’s (City) Annual Comprehensive Financial Report (ACFR) presents a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. The reader is encouraged to consider the information presented here in conjunction with the City’s financial statements, which follow this section, and the additional information that is furnished in the letter of transmittal at the front of this report. This discussion and analysis provides comparisons primarily for the previous two years; but, may include more extensive comparisons in some instances.
FINANCIAL HIGHLIGHTS
• The assets of the City stayed over $4 billion, reaching a total of $4,001.0 million. • Thanks to a large amount of COVID mitigation funds from the federal government and a large influx of sales tax, the City had record revenue of $930.5 million in fiscal year 2021. • The City continues to record a Net Pension Asset. For fiscal year 2021, the Net Pension Asset was $ 93.2 million . The City of Fresno remains one of very few government entities in the country with a Net Pension Asset.
OVERVIEW OF FISCAL YEAR 2021 FINANCIAL STATEMENTS
The Management's Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements, which consist of three components: (1) Government-Wide Financial Statements, (2) Fund Financial Statements and (3) Notes to the Financial Statements . This report also contains other Supplementary Information in addition to the basic financial statements.
Government-Wide Financial Statements are designed to provide both long-term and short-term information about the City’s overall financial status in a manner similar to a private-sector business. • The Statement of Net Position presents information on all assets/deferred outflows of resources and liabilities/deferred inflows of resources. The difference between them is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. • The Statement of Activities shows how the net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future periods. Examples include revenues pertaining to uncollected taxes and fees and expenses pertaining to earned but unused vacation and sick leave.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 5 MANAGEMENT'S DISCUSSION & ANALYSIS Both of the Government-Wide Financial Statements distinguish functions of the City that are principally supported by taxes and inter-governmental revenues (Governmental Activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (Business-Type Activities). The Governmental Activities of the City include general government, public protection, public ways and facilities, culture and recreation, and community development. The Business-Type Activities of the City include two airports, public transportation system, water, sewer, solid waste, community sanitation, convention center, and stadium.
The Government-Wide Financial Statements include not only the City (known as the primary government), but also legally separate component units including the Fresno Joint Powers Financing Authority, City of Fresno Fire and Police Retirement System, City of Fresno Employees Retirement System, City of Fresno Employees Healthcare Plan, Fresno Revitalization Corporation, and FRC Canyon Crest, LLC. The component units have been “blended” into the City’s financial statements because the governing board (although legally separate from the City) is substantially the same as the City’s, or they provide services entirely or almost exclusively for the benefit of the City even though they do not provide services directly to the City.
As of February 1, 2012, a Successor Agency was created to replace the Redevelopment Agency of the City of Fresno (RDA). Dissolution law provided that the Successor Agency would pay all “enforceable obligations” of the former RDA. The Successor Agency is considered a separate legal entity under Assembly Bill (AB) 1484 for financial presentation purposes. Effective June 30, 2012, the Successor Agency was reported as a Private-Purpose Trust Fund. This means that the Successor Agency’s assets are considered to be held in a trustee or agency capacity for others and therefore cannot be used to support the City’s own programs.
The Government-Wide Financial Statements can be found on pages 30-31 of this report.
Fund Financial Statements focus on individual parts of the City government, reporting the City’s operations in more detail than the Government-Wide Financial Statements. They are used to maintain control over resources that have been segregated for specific activities or objectives and to ensure compliance with finance-related legal requirements. They can be divided into three categories:
• Governmental Funds are used to account for essentially the same functions reported as Governmental Activities in the Government-Wide Financial Statements (i.e., most of the City’s basic services are reported in Governmental Funds). These statements, however, focus on (1) how cash and other financial assets can be readily converted to available resources, and (2) the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the City’s programs.
Because the focus of Governmental Funds Financial Statements is narrower than that of the Government-Wide Financial Statements, it is helpful to compare the information presented for Governmental Funds with similar information presented for governmental activities in the Government-Wide Financial Statements. By doing so, readers may better understand the long- CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 6 MANAGEMENT DISCUSSION & ANALYSIS term impact of the government’s near-term financing decisions. Both the Governmental Funds Balance Sheet and Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between Governmental Funds and Governmental Activities. These reconciliations may be found on pages 35 and 37.
The City maintains several individual Governmental Funds organized according to their type:
general fund, special revenue, debt service, and capital projects. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and Grants Special Revenue Fund (which are considered to be major funds). Data from the remaining Governmental Funds are combined into a single, aggregated presentation. Individual fund data for each of the Nonmajor Governmental Funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget. The City’s budget reflects its priorities and tells the taxpayers/ratepayers what is being done with their money. Budgetary comparison schedules for the General Fund and the Grants Special Revenue Fund demonstrate compliance with the budget, and also reflect where actual results deviated from expected budgetary estimates. • Proprietary Funds are generally used to account for services for which the City charges customers (either outside customers, or internal units or departments of the City). Proprietary Funds provide the same type of information as shown in the Government-Wide Financial Statements: albeit in more detail. Proprietary Funds (Enterprise and Internal Service) utilize the same method used by the private sector businesses: the accrual basis of accounting. The City maintains the following two types of Proprietary Funds:
† Enterprise Fund s are used to report the same functions as Business-Type Activities in the Government-Wide Financial Statements. The City uses Enterprise Funds to account for the operations of the Public Utilities [ Water System, Sewer System, Solid Waste Management ], Fresno Area Express [ Transit], Fresno International Airport (FYI) and the Fresno Chandler Downtown Airport (FCH) [Airports], Fresno Convention Center, and Chukchansi Park Stadium [Stadium], all of which are considered to be major funds of the City. Community Sanitation and Parks and Recreation are considered to be Nonmajor Enterprise Funds of the City. † Internal Service Funds are used to report activities that provide supplies and services for certain City programs and activities. The City uses Internal Service Funds to account for its fleet of vehicles, management information systems, property maintenance, and electronics/ communication support ( General Services ); self-insurance ( Risk Management ); billing, collecting, and servicing activities for the Water, Sewer, Solid Waste and Community Sanitation Funds ( Billing and Collection ); and healthcare plans ( Employees Healthcare Plan , Retirees Healthcare Plan , Blue Collar Employees Healthcare Plan ). Because Risk Management, General Services and the healthcare plans predominantly benefit Governmental rather than Business-Type functions, they have been included within Governmental Activities in the Government-Wide Financial Statements, whereas Billing and Collection is included in the Business-Type Activities in the Government-Wide Financial Statements. The Internal Service Funds are combined into a single, aggregated presentation in the Proprietary Fund Financial CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 7 MANAGEMENT DISCUSSION & ANALYSIS Statements. Individual Fund data for the Internal Service Funds is provided in the form of combining statements.
• Fiduciary Funds are used to account for resources held for the benefit of parties outside the City.
Since the resources of Fiduciary Funds are not available to support the City’s own programs, they are not reflected in the Government-Wide Financial Statements. The accounting used for Fiduciary Funds is much like that used for Proprietary Funds. The City maintains three types of Fiduciary Funds:
† Pension Trust Funds consist of funds for Fire and Police and other Employees. † Private-Purpose Trust Fund is used to account for the assets and liabilities held in trust for the Successor Agency to the former RDA.
† Custodial Funds consist of funds used to account for City-related trust activity, such as payroll withholding and bid deposits. Custodial Funds also include Special Assessment Funds that account for debt service transactions involving special assessment districts within the City.
The basic financial statements can be found on pages 30-163 of this report.
Notes to the Financial Statements
The Notes to the Financial Statements provide additional information that is essential to the full understanding of the data provided in all of the financial statements. The Notes to the Financial Statements can be found on pages 51-163 of this report.
Required Supplementary Information (RSI)
In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information including budgetary comparison statements for major governmental funds as well as schedules of investment returns, changes in Net Pension Liability (Asset), employer contribution, and schedule of changes in Net Other Post-Employment Benefits (OPEB) Liability and related ratios. RSI and accompanying notes can be found on pages 166-179 of this report.
Combining and Individual Fund Statements and Schedules
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds, internal service funds, fiduciary funds and the Discretely Presented Component Unit are presented immediately following the appropriately labeled tabs. Combining and individual fund statements and schedules can be found on pages 182-205 of this report.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 8 MANAGEMENT DISCUSSION & ANALYSIS
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City presents its financial statements under the reporting model required by the Governmental Accounting Standards Board Statement No. 34 (GASB 34), Basic Financial Statements - and Management’s Discussion and Analysis (MD&A) - for State and Local Governments.
Net Position - Government-Wide / Primary Government
(in thousands)
Governmental
Activities
Business-Type
Activities Total Total Change from
Prior Year
2020 2021 2020 2021 2020 2021 $ %
Assets:
Current and Other Assets $ 527,133 $ 636,312 $ 566,127 $ 568,880 $ 1,093,260 $ 1,205,192 $ 111,932 10.2% Net Pension Asset 193,847 78,323 51,143 14,875 244,990 93,198 (151,792) (62.0)% Capital Assets:
Not Being Depreciated 333,171 334,143 496,819 481,193 829,990 815,336 (14,654) (1.8)% Net of Accumulated Depreciation 611,366 607,929 1,256,986 1,279,354 1,868,352 1,887,283 18,931 1.0% Total Capital Assets 944,537 942,072 1,753,805 1,760,547 2,698,342 2,702,619 4,277 0.2% Total Assets 1,665,517 1,656,707 2,371,075 2,344,302 4,036,592 4,001,009 (35,583) (0.9)% Deferred Outflows of Resources:
Charge on Refunding 3,966 3,550 435 178 4,401 3,728 (673) (15.3)% Deferred Outflows - Pension 100,713 176,324 20,907 43,667 121,620 219,991 98,371 80.9% Deferred Outflows - OPEB 29,058 26,069 12,163 10,917 41,221 36,986 (4,235) (10.3)% Total Deferred Outflows of Resources 133,737 205,943 33,505 54,762 167,242 260,705 93,463 55.9% Liabilities:
Long-Term Liabilities Due Within One Year 81,491 86,619 30,958 21,459 112,449 108,078 (4,371) (3.9)% Long-Term Liabilities Due in More than One
Year 514,916 553,188 706,582 690,944 1,221,498 1,244,132 22,634 1.9% Other Liabilities 113,866 166,233 94,121 96,945 207,987 263,178 55,191 26.5% Total Liabilities 710,273 806,040 831,661 809,348 1,541,934 1,615,388 73,454 4.8% Deferred Inflows of Resources:
Pension Revenue Applicable to Future Years 17,920 16,075 3,841 534 21,761 16,609 (5,152) (23.7)% Unamortized OPEB Expense 15,836 17,662 6,516 7,318 22,352 24,980 2,628 11.8% Total Deferred Inflows of Resources 33,756 33,737 10,357 7,852 44,113 41,589 (2,524) (5.7)% Net Position:
Net Investment in Capital Assets 787,395 794,759 1,090,352 1,120,876 1,877,747 1,915,635 37,888 2.0% Restricted 239,898 304,925 — — 239,898 304,925 65,027 27.1% Unrestricted 27,932 (76,811) 472,210 460,988 500,142 384,177 (115,965) (23.2)% Total Net Position $ 1,055,225 $ 1,022,873 $ 1,562,562 $ 1,581,864 $ 2,617,787 $ 2,604,737 $ (13,050) (0.5)% CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 9 MANAGEMENT DISCUSSION & ANALYSIS Changes in Net Position - Government-Wide / Primary Government (in thousands)
Governmental
Activities
Business-Type
Activities Total Total Change from
Prior Year
2020 2021 2020 2021 2020 2021 $ %
Revenues
Program Revenues:
Charges for Services $ 73,765 $ 73,333 $ 270,774 $ 268,161 $ 344,539 $ 341,494 $ (3,045) (0.9)% Operating Grants & Contributions 39,037 40,393 80,766 56,334 119,803 96,727 (23,076) (19.3)% Capital Grants & Contributions 49,161 135,064 38,027 29,884 87,188 164,948 77,760 89.2% General Revenues:
Property Taxes 142,250 149,822 — — 142,250 149,822 7,572 5.3% Business Tax 20,868 20,577 — — 20,868 20,577 (291) (1.4)% Sales Taxes - Shared Revenues 98,531 125,279 — — 98,531 125,279 26,748 27.1% Other Local Taxes 30,795 32,120 — — 30,795 32,120 1,325 4.3% Investment Earnings 11,863 1,786 17,316 (2,206) 29,179 (420) (29,599) (101.4)% Gain on Sale of Capital Assets 2 — 31 — 33 — (33) (100.0)% Total Revenues 466,272 578,374 406,914 352,173 873,186 930,547 57,361 6.6% Expenses
General Government 46,114 90,218 — — 46,114 90,218 44,104 95.6% Public Protection 271,085 305,172 — — 271,085 305,172 34,087 12.6% Public Ways and Facilities 93,243 123,068 — — 93,243 123,068 29,825 32.0% Culture and Recreation 26,039 30,882 — — 26,039 30,882 4,843 18.6% Community Development 31,102 41,053 — — 31,102 41,053 9,951 32.0% Interest on Long-Term Debt 13,652 12,552 — — 13,652 12,552 (1,100) (8.1)% Sewer, Water and Solid Waste — — 203,487 216,322 203,487 216,322 12,835 6.3% Transit — — 62,016 66,135 62,016 66,135 4,119 6.6% Airports — — 35,984 41,090 35,984 41,090 5,106 14.2% Fresno Convention Center — — 7,108 5,096 7,108 5,096 (2,012) (28.3)% Community Sanitation — — 9,147 8,698 9,147 8,698 (449) (4.9)% Parks and Recreation — — 586 572 586 572 (14) (2.4)% Stadium — — 2,702 2,739 2,702 2,739 37 1.4%
Total Expenses 481,235 602,945 321,030 340,652 802,265 943,597 141,332 17.6% Increase (Decrease) in Net
Position Before Transfers (14,963) (24,571) 85,884 11,521 70,921 (13,050) (83,971) (118.4)% Transfers (8,309) (7,781) 8,309 7,781 — — — —%
Change in Net Position (23,272) (32,352) 94,193 19,302 70,921 (13,050) (83,971) (118.4)% Net Position - Beginning 1,078,497 1,055,225 1,468,369 1,562,562 2,546,866 2,617,787 70,921 2.8% Net Position - Ending $ 1,055,225 $ 1,022,873 $ 1,562,562 $ 1,581,864 $ 2,617,787 $ 2,604,737 $ (13,050) (0.5)% CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 10 MANAGEMENT DISCUSSION & ANALYSIS Analysis of Changes in Government-Wide Net Position
The City’s overall Net Position declined slightly to $ 2,604.7 million: a $13.1 million (0.5%) decrease from fiscal year 2020’s Net Position of $2,617.8 million . Most notably, the Unrestricted Net Position declined; going from $500.1 million in fiscal year 2020 to $384.2 million in fiscal year 2021.
Several factors contributed to the overall decrease in Net Position:
• City Revenues grew $57.4 million (6.6%), going from $873.2 million in fiscal year 2020 to $930.5 million in fiscal year 2021. The overall growth in revenues was caused by a $77.8 million (89.2%) rise in Capital Grants, which was partially offset by a decrease of $23.1 million (19.3%) in Operating Grants.
• City Expenses exploded from $ 802.3 million incurred in fiscal year 2020 to $943.6 million in fiscal year 2021. That overall increase can be bifurcated as follows: Governmental Activities Expenses grew $121.7 million (25.3%), while Business-Type Activities Expenses rose $19.6 million (6.1%). The primary causes behind the increase in Governmental Activities Expenses were a $44.1 million escalation in General Government expenses, $34.1 million of growth in Public Protection expenses and a $29.8 million million rise in Public Ways and Facilities expenses. On the Business-Type Activities side, $9.3 million of growth in the Sewer Fund's expenses, a $4.1 million rise in Transit's expenses, and an upturn of $5.1 million in Airports' expenses explain most of that Activity's expense increase.
• Total Assets went from $ 4,036.6 million in fiscal year 2020 to $ 4,001.0 million in fiscal year 2021: a $35.6 million (0.9%) decrease. The decline in Total Assets was due primarily to a $151.8 million decrease in the Net Pension Asset (from $245.0 million in fiscal year 2020 to $93.2 million in fiscal year 2021: a 62.0% decrease), which was partially offset by growth in three areas:
– a $47.7 million increase in Cash and Investments (from $486.0 million in fiscal year 2020 to $533.7 million in fiscal year 2021: a 9.8% increase) ;
– a $36.9 million increase in Net Receivables (from $153.1 million in fiscal year 2020 to $190.0 million in fiscal year 2021: a 24.1% increase) ; and, – a $29.0 million increase in Restricted Cash (from $338.8 million in fiscal year 2020 to $367.8 million in fiscal year 2021: an 8.6% increase).
• Total Deferred Outflows of Resources rose $93.5 million (55.9%) from fiscal year 2020's figure of $167.2 million , primarily as a result of $98.4 million of Deferred Outflows - Pensions increases that were partially offset by a $4.2 million decline in Deferred Outflows - OPEB. • Total Liabilities grew $73.5 million ( 4.8%) from $1,541.9 million in fiscal year 2020 to $1,615.4 million in fiscal year 2021. The overall growth in Total Liabilities was mainly attributable to an upturn of $29.7 million in Unearned Revenue (which was the product of unspent American Rescue Plan Act monies at fiscal year 2021's end) and a rise of $22.6 million in Long Term Liabilities (due to the issuance of additional debt).
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 11 MANAGEMENT DISCUSSION & ANALYSIS • A $ 2.5 million ( 5.7%) decrease in the Deferred Inflows of Resources, specifically, the Pension Revenue Applicable to Future Years.
Governmental Activities
In fiscal year 2021, Governmental Activities decreased their Net Position by $32.4 million ( 3.1%) to $1,022.9 million. The decline in Net Position occurred primarily within the Unrestricted Net Position, which fell by $104.7 million to fiscal year 2021’s Net Position of $(76.8) million. Key factors affecting the Net Position were:
• Revenues grew strongly, going from $466.3 million in fiscal year 2020 to $578.4 million in fiscal year 2021: a $ 112.1 million (24.0%) increase. The overall increase was primarily the product of growth in two revenue categories. First, Capital Grant revenues rose a staggering $85.9 million (174.7%) to $135.1 million. The large amount of federal COVID mitigation funds, such as Coronavirus Aid, Relief, and Economic Security (CARES) and Emergency Rental Assistance Program (ERAP), drove the overall increase in Capital Grant revenue. Second, General Revenues increased by $25.3 million (8.3%): from $304.3 million in fiscal year 2020 to $329.6 million in fiscal year 2021. Almost all of the growth in this category can be attributed to a $26.7 million increase in Sales Tax, most of which was additional Sales Tax from Amazon as a result of a change in the ownership structure of their Fresno fulfillment center. • Expenses grew from $481.2 million in fiscal year 2020 to $602.9 million in fiscal year 2021, led by a 32.0% increase in Public Ways and Facilities expenses (from $93.2 million in fiscal year 2020 to $123.1 million in fiscal year 2021), a 12.6% increase in Public Protection expenses (from $271.1 million in fiscal year 2020 to $305.2 million in fiscal year 2021), and a 95.6% increase in General Government costs (from $46.1 million in fiscal year 2020 to $90.2 million in fiscal year 2021).
Most of the increase in the Public Protection category can be attributed to increased personnel costs, while the growth in Public Ways and Facilities expenses can be attributed to additional grant-funded capital expenses. Increases in General Government expenses can be attributed to the disbursement of federal COVID mitigation funds throughout the community and the organization.
• Total Assets decreased by $ 8.8 million ( 0.5%) from fiscal year 2020’s Total Assets balance of $1,665.5 million . The overall decline in Total Assets was primarily caused by a decrease of $115.5 million ( 59.6%) in the Net Pension Asset to $ 78.3 million . This decrease was partially offset by an increase in Unrestricted Cash of $53.4 million ( 23.5%) to $280.7 million and an increase in Restricted Cash of $44.6 million (37.6%) to $163.2 million. The Cash increases were the result of the influx of federal COVID mitigation funds. • Total Liabilities increased by 13.5%, or $ 95.8 million, from fiscal year 2020’s Total Liabilities of $710.3 million. A $30.6 million rise in Unearned Revenue (from $83.1 million in fiscal year 2020 to $113.8 million in fiscal year 2021) generated by unspent COVID mitigation funds and growth in total Long-Term Liabilities (Due Within a Year and Due in More than One Year, combined) of $43.4 million (7.3%) from a new bond issue and other new debt financing explains the overall increase in Total Liabilities.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 12 MANAGEMENT DISCUSSION & ANALYSIS Governmental Activities - Charts and Graphs
The following charts and graphs illustrate the City’s governmental revenues by source and its expenses and revenues by function. As can be seen, Public Protection is by far the largest function reflecting the City’s greatest overall expenses.
Fiscal Year
% of Total Revenue
Governmental Activities
Revenue by Type (2 Year Comparative)
13%
16%
7%
8%
23%
11%
4%
4%
22%
21%
26%
30%
5%
7%
—%
3%
Charges for ServicesOperating Grants & ContributionsCapital Grants & ContributionsBusiness TaxesSales TaxProperty TaxesOther Local TaxesInvestment Income 2021
2020
0 20 40 60 80 100
Fiscal Year
% of Total Expenses
Governmental Activities
Expenses by Type (2 Year Comparative)
51%
57%
20%
19%
7%
6%
5%
5%
15%
10%
2%
3%
Public ProtectionPublic Ways and FacilitiesCommunity DevelopmentCulture and RecreationGeneral GovernmentInterest and Long-Term Debt 2021
2020
0 20 40 60 80 100
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 13 MANAGEMENT DISCUSSION & ANALYSIS (in Millions)
Program Revenues and Expenses - Governmental Activities (2 Year Comparative)
2021 Program Revenues 2020 Program Revenues
2021 Expenses 2020 Expenses
Public Protection Public Ways
and Facilities
Community
Development
Culture and
Recreation
General
Government
Interest on
Long-Term Debt
$0
$50
$100
$150
$200
$250
$300
$350
The following is an analysis of some of the funds within the Governmental Activities category:
General Fund
Fund Balance in the General Fund increased from $ 75.9 million in fiscal year 2020 to $ 102.9 million in fiscal year 2021. It is significant to note that the Unassigned Fund Balance increased from $ 33.0 million in fiscal year 2020 to $43.0 million in fiscal year 2021: a $10.0 million (30.2%) increase.
Fiscal year 2021's revenues showed marked growth when compared to fiscal year 2020’s revenues; increasing by $31.4 million ( 9.1%) from fiscal year 2020’s total of $ 345.6 million . The increase was primarily in Tax Revenue, which was up $28.2 million (9.5%). The main driver in the overall increase in Tax Revenue came from $16.9 million of growth in Sales Tax revenue, which was primarily due to additional Sales Tax generated at the Amazon Fulfillment Center as a result of a change in the ownership structure of the facility. Additional growth in the Tax Revenue category was provided by Property Taxes, which grew $7.6 million due to increased property assessed valuations.
While General Fund revenues were up, General Fund expenditures grew at an even faster pace when compared to the previous fiscal year. General Fund expenditures grew by $ 64.2 million, or 19.8%, to a total of $388.1 million. The change in expenditures can be explained by three factors:
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 14 MANAGEMENT DISCUSSION & ANALYSIS • An increase of $31.3 million (114.8%) in General Government expenditures to $58.6 million. The overall increase was spurred by $22.6 million of COVID mitigation expenditures that were funded with the City's allocation of federal CARES monies. • Growth in Public Protection expenditures, which increased from $ 238.1 million in fiscal year 2020 to $ 250.5 million in fiscal year 2021: a $ 12.4 million , or 5.2%, increase. The Public Protection increase was primarily due to additional personnel costs, which increased $12.7 million over fiscal year 2020's personnel costs of $199.3 million. • A rise of $11.8 million in Capital Outlay expenditures, which grew from $1.6 million to $13.4 million, or 731.4%. $9.9 million of the overall increase was caused by the purchase of a motel, which was converted into a homeless shelter. The motel purchase was funded with the City's allocation of federal CARES monies.
A large portion of the difference between actual expenditures and actual revenues was funded by transfers from other funds; specifically, the CARES Fund. Overall, Transfers In increased $59.3 million (379.2%) to $75.0 million.
The additional Transfers In and revenues produced a large increase in Total Assets, which grew $46.4 million (39.8%) to $163.0 million. The increase was driven by two accounts:
• Unrestricted Cash, which rose $31.1 million (131.6%) to $54.7 million. • Intergovernmental Receivables (such as Sales Tax Receivable) grew $6.4 million (17.3%).
While Total Assets grew significantly, the percentage growth in Total Liabilities exceeded that of Total Assets. Total Liabilities rose $22.9 million (151.5%) to $38.0 million. The overall increase in Total Liabilities can be attributed to an increase of $9.4 million (439.3%) in Advances from Other Funds and an increase of $9.4 million ( 72,330.8%) in Deposits With Others. The Advances from Other Funds increase was tied to monies lent from other funds for the purchase of a motel converted to a homeless shelter. The Deposits with Others increase was associated with GASB Statement No. 84's required reclassification of agency funds into the General Fund for reporting purposes.
Significant committed fund balance amounts of the General Fund include:
• $35.5 million for the General Fund Emergency Reserve, • $2.1 million for the 27th Pay Period Reserve, and
• $1.7 million for the General Fund - Housing Reserve.
General Fund Budget to Actual Comparison
The fiscal year 2021 Adopted Budget was made up of $440.6 million of budgeted revenues and $402.0 million of appropriations. After various amendments were made throughout the fiscal year, the General Fund ended the fiscal year with $ 525.0 million of budgeted revenues and $ 494.5 million of appropriations. Actual results on a budgetary (cash) basis of accounting were $ 556.3 million of revenues and $452.1 million of expenditures. Thus, the actual revenues were $ 31.3 million (6.0%) over the fiscal year-end budgeted revenues, while the actual expenditures were $ 42.4 million (8.6%) under fiscal year-end appropriations.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 15 MANAGEMENT DISCUSSION & ANALYSIS The major differences between the budget and the actual results are noted below:
Comparison of Revenues and Expenditures - Budget to Actual / General Fund (in thousands)
Budgeted
Original
Budgeted
Final
Actual
Budgetary
Basis
Over (Under)
Final Budget Explanation
Revenues:
Sales Tax $98,394 $94,420 $122,955 $28,535
Higher than anticipated sales tax was received due to
proceeds from Amazon as a result of a change they made in the ownership structure of their fulfillment center.
Miscellaneous $28,874 $35,293 $23,988 $(11,305) Budget included estimate for a $10 million interfund loan that was not executed.
Transfers from
Other Funds $2,383 $76,530 $84,218 $7,688 Higher than budgeted transfers of CARES funds into the General Fund.
Expenditures:
Other General
Government $30,858 $76,788 $61,709 $(15,079) COVID-19 mitigation expenditures were less than budget.
Police
Department $184,420 $198,407 $188,710 $(9,697) Greater than budgeted attrition savings was incurred due to hiring freeze and difficulties recruiting police officers.
Community
Development $34,363 $39,842 $34,110 $(5,732) Greater than budgeted attrition savings was incurred due to hiring freeze and difficulties recruiting staff.
A more detailed look at the budget versus actual comparison for the General Fund can be found on page 166 in the Required Supplementary Information section.
Grants Special Revenue Fund
Fund Balance in the Grants Special Revenue Fund dropped from $ 79.7 million in fiscal year 2020 to $52.6 million in fiscal year 2021. The decline in Fund Balance was due primarily to the receipt of $85.4 million of American Rescue Plan Act (ARPA) funding in May 2021. As no spending plan was developed for those monies by the end of fiscal year 2021, the ARPA deposit was treated as Unearned Revenue.
This accounting treatment meant that Total Liabilities grew from $83.9 million in fiscal year 2020 to $124.0 million in fiscal year 2021: a $40.1 million ( 47.8%) increase. That infusion of funding also increased the Restricted Cash account balance from $79.3 million in fiscal year 2020 to $103.7 million in fiscal year 2021: a 30.7% increase.
The large amount of federal and state financial support for COVID impact mitigation had a significant impact on the Grants Special Revenue Fund's revenues and expenditures. Fiscal year 2021 revenues in the Grants Special Revenue Fund were up $52.4 million (104.2%) to $102.8 million. Contributing to the increase in revenue was $85.4 million of ARPA funds and $15.4 million of ERAP funding. The large amount of new revenue was accompanied by corresponding expenditure growth. Expenditures grew $ 26.1 million ( 110.5%) from fiscal year 2020’s level of $ 23.6 million to fiscal year 2021’s total of $49.7 million . Large increases were seen in the General Government category (up $9.8 million , or 1,113.8%) and Public Ways and Facilities category (up $10.0 million , or 152.6%). The increase in the General Government category was due to $6.8 million of ERAP payments made to recipients and community based organizations. The increase in the Public Ways and Facilities category was primarily due to $6.0 million of payments for Transformative Climate Communities Grant projects.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 16 MANAGEMENT DISCUSSION & ANALYSIS Other Governmental Funds
Fund Balance for the Other Governmental Funds rose $35.6 million between fiscal year 2020 and fiscal year 2021 ($ 123.2 million versus $ 158.8 million , respectively). The growth in the Fund Balance was primarily due to a $17.4 million increase in Fund Balance for the Financing Authorities and Corporations Fund. The growth in the Financing Authorities and Corporations Fund's find balance was the result of a $17.1 million October 2020 bond issue for a new animal shelter.
Business-Type Activities
Business-Type Activities for fiscal year 2021 increased their Net Position by $19.3 million ( 1.2%) over fiscal year 2020’s Business-Type Activities Net Position of $1,562.6 million. Key factors affecting the Net Position were:
• Total Assets decreased by $26.8 million (1.1%) from fiscal year 2020’s Total Asset balance of $2,371.1 million. The decrease was primarily due to a drop of $36.3 million (70.9%) in the Net Pension Asset to a fiscal year 2021 figure of $14.9 million. • Total Liabilities fell by 2.7%, or $22.3 million, from fiscal year 2020’s Total Liabilities of $831.7 million. The decline was primarily due to a $15.6 million (2.2%) drop in Long-Term Liabilities Due in More than One Year mainly caused by the defeasance of the Water Series 2010-A bonds.
• Revenues went from $406.9 million in fiscal year 2020 to $352.2 million in fiscal year 2021: a $54.7 million ( 13.5%) decrease. The drop can be attributed to a decline of $31.2 million in Transit Operating Grants, and a decline of $19.6 million (112.7%) in Investment Income caused by the decrease in the Net Pension Asset. Also contributing to the overall decline in revenues was a $6.7 million (72.6%) fall in Airports' Capital Grants revenues, which was the result of the completion of several capital projects.
• Expenses went from $321.0 million in fiscal year 2020 to $340.7 million in fiscal year 2021. The primary driver behind this increase was $9.3 million ( 14.2%) of growth in the Sewer Fund's expenses, with vehicle acquisition being the largest contributor to this increase. Additionally, growth of $4.1 million ( 6.6%) in the Transit Fund's expenses and $5.1 million ( 14.2%) in the Airports Fund's expenses (both increases due mainly to pension costs) added to the overall increase in Business-Type Activities expenses.
Business-Type Activities - Charts and Graphs
The following charts and graphs illustrate the City’s Business-Type revenues and expenses by both source and function. Sewer, Water, and Solid Waste are by far the largest Business-Type Activities reflecting the City’s greatest overall expenses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 17 MANAGEMENT DISCUSSION & ANALYSIS Fiscal Year
% of Total Revenue
Business-Type Activities
Revenue by Type
(2 Year Comparative)
76%
67%
16%
20%
8%
9% 4%
Charges for ServicesOperating Grants
& ContributionsCapital Grants
& ContributionsInterest & Investment
Income
2021
2020
0 20 40 60 80 100
Fiscal Year
% of Total Expenses
Business-Type Activities
Expenses by Type
(2 Year Comparative)
19%
19%
66%
66%
1%
2%
13%
12%
1%
1%
TransitSewer, Water, Solid Waste,
& Community SanitationConvention CenterAirportStadium
2021
2020
0 20 40 60 80 100
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 18 MANAGEMENT DISCUSSION & ANALYSIS (in Millions)
Business-Type Activities
Program Revenues and Expenses
(2 Year Comparative)
2021 Program Revenues 2020 Program Revenues
2021 Expenses 2020 Expenses
Airport Convention CenterParks & Recreation Stadium Sewer, Water, Solid Waste &
Community
Sanitation
Transit
$-25
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
The following is an analysis of some of the funds within the Business-Type Activities category:
Water
The Water Fund's (Water) Net Position showed an increase over fiscal year 2020’s levels. Net Position grew from $487.0 million in fiscal year 2020 to $517.1 million in fiscal year 2021: a $30.1 million (6.2%) increase. The change in net position was driven by the following factors:
• Water revenues increased from $ 120.3 million in fiscal year 2020 to $ 127.7 million in fiscal year 2021: a $ 7.4 million (6.2%) increase. The increase was primarily driven by a $3.7 million rise in Customer User Charges, and $2.7 million of growth in Water Infrastructure Development Charges.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 19 MANAGEMENT DISCUSSION & ANALYSIS • Water's Operating Expenses decreased by $ 0.6 million ( 0.6%) to $ 86.8 million in fiscal year 2021. The decline in expenses was primarily the result of a $1.8 million ( 14.8%) decrease in Administration costs (primarily in loans within the City), which was partially offset by a $0.9 million ( 2.0%) increase in Cost of Services (primarily in inventory expenses) and a $0.4 million (1.2%) increase in Depreciation Expense.
• Total Assets dropped from $965.0 million in fiscal year 2020 to $959.2 million in fiscal year 2021, a $5.7 million (0.6%) decrease. A $7.1 million decrease in Unrestricted Cash, which was used to defease the Water Series 2010-A1 bonds, was the primary cause of the overall decrease in Water's assets.
• Total Liabilities fell by $ 31.5 million ( 6.5%) from $ 482.3 million in fiscal year 2020 to $ 450.8 million in fiscal year 2021. The overall decline in Total Liabilities was due to a $21.9 million (19.5%) decrease in Long-Term Bonds Payable and a $6.4 million ( 100.0%) decrease in Short- Term Bonds Payable; the result of a $27.6 million defeasance in Water Series 2010-A1 bonds.
The effect of the defeased bonds on Total Liabilities was augmented by a $4.4 million (1.3%) decrease in the Long-Term Notes Payable.
Sewer
The Sewer Fund's Net Position increased by $9.2 million (1.3%), from $707.2 million in fiscal year 2020 to $716.4 million in fiscal year 2021. The driver behind the Net Position increase was an increase of $25.7 million ( 29.4%) in Current Assets partially offset by a $12.4 million ( 10.4%) increase in Total Liabilities from fiscal year 2020’s figure of $119.4 million.
The growth in Current Assets powered an increase of $17.8 million ( 2.2%) in Total Assets to $840.6 million. The overall increase in Current Assets was primarily caused by a $23.8 million increase in Unrestricted Cash. Unrestricted Cash's increase was partially offset by a decrease in Capital Assets of $12.2 million ( 1.8%). The decrease in Capital Assets was caused by a $20.1 million ( 6.4%) increase in Accumulated Depreciation.
The growth in Total Liabilities was primarily caused by a $19.7 million (29.4%) increase in Long-Term Notes Payable: specifically, those for the Southwest Recycled Water project. The growth in Long- Term Notes Payable was offset by a $6.1 million (100.0%) decrease in Current Bonds Payable, which was the result of the Sewer bond defeasement undertaken in fiscal year 2020.
The Unrestricted Cash was also bolstered by Operating Income of $8.4 million, which was a decrease from fiscal year 2020's Operating Income of $10.7 million. While revenues were up slightly ( $0.7 million, or 0.9%) due to an increase in Donations (from assets, like sewer lines, donated to the City as part of a new housing development), Operating Expenses grew by $5.2 million (8.2%). The Operating Expense growth consisted primarily of $1.9 million in Fleet Acquisition expenses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 20 MANAGEMENT DISCUSSION & ANALYSIS Solid Waste Management
The Solid Waste Management Fund's (Solid Waste) Net Position declined from fiscal year 2020’s figure of $41.7 million to fiscal year 2021’s figure of $32.7 million: a $9.0 million (21.6%) decrease. The Net Position decrease was due to a combination of a drop in revenues of $0.4 million (1.4%) and an increase in Operating Expenses of $2.3 million ( 6.2%). The decline in revenues was due to an $0.8 million decrease in Pension Revenue and a $0.2 million decrease in Recyclables Revenue, both of which were partially offset by a $0.7 million increase in Customer Service Charges. Growth in Tipping Fees ($0.9 million), Salaries/Benefits costs ($0.6 million), and Fleet Services costs ($0.5 million) drove the overall increase in Operating Expenses.
Solid Waste's operational results were reflected on the fund's Statement of Net Position through both a $13.4 million (66.6%) decrease in Unrestricted Cash and a $4.4 million (66.0%) decrease in the Net Pension Asset, which were partially offset by a $7.6 million (85.8%) increase in Restricted Cash.
Transit
The COVID-19 pandemic continued to have a major impact on the Transit Fund (Transit). Due to various COVID mitigation strategies, including capping the number of passengers on a bus at any given time, Transit saw another decline in ridership. Transit transported 5.6 million passengers in fiscal year 2021, a 38.1% drop from fiscal year 2020’s ridership of 9.1 million passengers. The 5.6 million passengers is the lowest passenger count that Transit has experienced in over twenty years.
The decline in passengers was seen in Transit's revenues, which decreased $4.8 million ( 192.5%) to $(2.3) million. Notable declines were seen in Passenger Revenues (down $1.8 million), 31 Day Regular Fare Pass Revenue (down $0.6 million), and Pension Revenue (down $2.3 million). Exacerbating the effect the declining revenues had on the Transit's financial position was an increase in Operating Expenses, which grew $3.2 million (5.2%). Increases in repairs and maintenance costs (up $1.9 million), and salaries/benefits expenses (up $1.1 million) were the main causes in Transit's overall Operating Expense increase.
Transit's operating results would have resulted in a significant reduction in Net Position were it not for a large influx of grant funding from federal and state agencies. That influx can be seen in a $31.2 million (39.4%) increase in Operating Grant Revenue to $47.9 million. These awards also drove growth in Grants Receivable, which went from $19.0 million in fiscal year 2020 to $32.0 million in fiscal year 2021: a $13.0 million (68.6%) increase. The increase in Grants Receivable was completely offset by a reduction in Restricted Cash of $13.8 million ( 35.6%). The impact of additional grant funding caused the Transit Fund's Net Position to grow by $0.5 million (0.3%) from $144.1 million in fiscal year 2020 to $144.6 million in fiscal year 2021.
Airports
Like Transit, the Airports' Fund (Airports) fiscal year 2021 was greatly impacted by the COVID-19 pandemic. Specifically, Airports saw a decrease in its passenger traffic through most of the fiscal year. This pattern reversed with the introduction of Denver and Las Vegas service from Southwest CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 21 MANAGEMENT DISCUSSION & ANALYSIS Airlines. Thanks primarily to this new service, both May and June 2021 passenger numbers exceeded the pre-pandemic passenger numbers for May and June 2019. However, a strong May and June 2021 were not enough to offset passenger losses incurred earlier in the fiscal year. Fiscal year 2021's origin and destination passengers numbered 1,294,591: 14.0% lower than the prior fiscal year's passenger count of 1,505,591.
The decline in passenger traffic had an impact on Operating Revenues, which fell $2.3 million (9.5%) to $21.8 million. The overall drop in Operating Revenues was powered by declines in passenger driven and airline activity revenues, particularly Parking Revenues, which fell $1.8 million (26.4%). Yet, while revenues decreased by 9.5%, Operating Expenses only fell 0.1% ($0.0 million) to a total of $32.9 million.
A decline of $0.2 million in Variable Interdepartmental Reimbursements to the General Fund constitutes the overall decrease in Operating Expenses.
The decline in revenues and little change in expenses had a predictable effect on Total Assets, which fell $5.1 million ( 1.8%) to $277.8 million . The overall decrease in Total Assets was due to several factors:
• A $2.6 million (10.2%) decrease in Current Unrestricted Cash, • A $4.5 million (100.0%) decrease in Current Restricted Cash, • A $13.1 million (24.7%) decline in Non-Current Restricted Cash, • A $3.4 million (88.6%) drop in Net Pension Asset, and • An $18.1 million (9.5%) increase in Net Capital Assets.
In addition to the decrease in Total Assets, Airports also experienced an increase in Total Liabilities, which grew $1.7 million ( 1.9%) to $92.5 million . Current Liabilities rose by $4.5 million ( 71.6%) to $10.7 million; led by a $2.6 million increase in Accounts Payable. The increase in Current Liabilities was partially offset by a $2.9 million (3.7%) decrease in Long-Term Bonds Payable, which was the result of regular bond payments.
The decrease in Total Assets and the increase in Total Liabilities resulted in Total Net Position declining by $4.5 million (2.3%) from fiscal year 2020's Net Position of $194.3 million to $189.9 million.
Convention Center
The Convention Center Fund (Convention Center) was the City operation most impacted by COVID-19 restrictions during fiscal year 2021. The Convention Center hosted no events during fiscal year 2021, as the facility was closed due to COVID mitigation measures. Consequently, Convention Center recorded $0.0 million of revenue in fiscal year 2021: a 100.0% decline ($2.4 million).
In response to this material decline in revenues, the management company overseeing Convention Center's operations cut expenses by $ 1.8 million ( 30.8%) from fiscal year 2020’s expenses of $ 5.9 million, led by a $1.1 million drop in Salaries/Benefits expenses and a $0.5 million decrease in Utilities expenses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 22 MANAGEMENT DISCUSSION & ANALYSIS In spite of the greater decrease in revenues than in expenses, the Convention Center's Net Position managed to go from $(2.5) million in fiscal year 2020 to $(1.2) million in fiscal year 2021: a $1.3 million (52.9%) improvement. A drop of $2.7 million (9.2%) in Total Liabilities, mainly caused by a $3.9 million decline in Bonds Payable as a result of scheduled debt service payments, contributed significantly to the improvement in Net Position. This decline in Bonds Payable was partially offset by an overall decline in Total Assets of $1.3 million (5.0%) from fiscal year 2020's Total Assets figure of $26.2 million.
An increase of $1.1 million ( 1.6%) in Accumulated Depreciation was the major contributor to the decline in Total Assets. It must be noted that fiscal year 2021 was the third consecutive year of improvement in the Convention Center's Net Position, during which $4.8 million of negative Net Position was addressed.
Stadium
Even though baseball was played at the stadium, financial results from those games were impacted both by COVID-19 restrictions and a new operating agreement with Major League Baseball. In December 2020, Major League Baseball completed its overhaul of the minor league system. As a result of that overhaul, Fresno's baseball team moved from a AAA affiliation to an A affiliation. This move to a lower affiliation resulted in modification to the operating lease between the City and the team. Among the changes to the terms of the lease were:
• Annual rent was reduced from $500,000/year to $100,000/year. • City agreed to pay up to $300,000/year in utility costs. • Annual capital contribution made by the team and the City decreased from $300,000/year to $50,000/year from each party.
• City will receive $15% of any naming rights revenues above $650,000/year (escalating 2% per year).
• Team will pay $1/ticket for any turnstile attendance over 150,000/year.
In spite of the reduced financial contribution from the team, the Stadium Fund continued to build on the improvement in Net Position it displayed in fiscal year 2020. Net Position grew from $4.1 million in fiscal year 2020 to $ 5.1 million in fiscal year 2021. Two factors drove the overall increase in Net Position:
• A $1.6 million ( 5.9%) decrease in Total Liabilities, primarily Bonds Payable as a result of scheduled debt service payments.
• A $0.6 million (1.8%) decrease in Total Assets, primarily $1.3 million of increased Accumulated Depreciation.
Internal Service Funds
The Net Position deficit in the Internal Service Funds grew by $16.8 million (68.8%) to $(41.3) million in fiscal year 2021. The increase in the Net Position deficit was primarily due to an increase of $37.8 million (24.5%) in the Short-Term and Long-Term (combined) Liability for Self-Insurance. Partially offsetting this liability increase were increases of $8.4 million ( 9.0%) in Unrestricted Cash and $14.8 million in Total Net Capital Assets.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 23 MANAGEMENT DISCUSSION & ANALYSIS The Internal Service Funds' Statement of Revenues, Expenses, and Changes in Net Position mirrored the results of the Statement of Net Position. The largest growth reflected on the Statement of Revenues, Expenses, and Changes in Net Position was an increase of $15.7 million in the Risk Fund's Refunds and Claims expense. Also contributing to the increase in expenses was a $3.9 million increase in Repairs and Maintenance expense from both the Information Services Internal Service Fund and the Fleet Management Fund.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its Governmental and Business-Type Activities, before Component Units, as of June 30, 2021 , amount to $2,702.6 million (net of accumulated depreciation). Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads, streets, traffic signals, streetlights, bridges, and construction in progress. The City’s capital assets net increase for the current fiscal year was approximately 0.2% (a 0.3% decrease for Governmental Activities, a 0.4% increase for Business-Type Activities) as shown in the table below. Capital assets for the fiscal year ended June 30, 2020 amounted to $2,698.3 million (net of accumulated depreciation).
The net decrease for 2020 was approximately 0.5% (a 1.3% decrease for Governmental Activities and a
0.1% decrease for Business-Type Activities).
Changes in Capital Assets, Net of Depreciation
(in thousands)
Asset Category Governmental
Activities
Business-Type
Activities
Total
Government-Wide
2020 2021 2020 2021 2020 2021
Land $261,608 $263,040 $48,891 $54,426 $310,499 $317,466 Intangibles (Indefinite Life) — — 17,698 17,949 17,698 17,949 Buildings and Improvements,
Net 145,754 144,950 517,530 581,285 663,284 726,235 Machinery and Equipment, Net 60,865 60,872 37,319 37,733 98,184 98,605 Infrastructure 404,747 402,107 702,137 660,334 1,106,884 1,062,441 Construction In Progress 71,563 71,103 430,230 408,818 501,793 479,921 Total $944,537 $942,072 $1,753,805 $1,760,545 $2,698,342 $2,702,617 Major capital asset events during fiscal year 2021, some of which were in progress during the previous fiscal year, included the following:
† BRT - Bus Rapid Transit
The BRT is an integrated bus system, which is operating on two of Fresno's main streets. The system includes 51 station pairs, two terminal stations, and one transit center, all of which were constructed as part of this project. Additionally, over 20 specialized buses were purchased to serve the routes. The $42.0 million cost of this project was funded by federal and state grants, along with some contributions from the City's Transit Fund.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 24 MANAGEMENT DISCUSSION & ANALYSIS † Taxiway C Reconstruction
Taxiway C, which is one of the primary taxiways at Fresno Yosemite International Airport, was reconstructed at a cost of $25.2 million. The reconstruction involved a complete renovation of the taxiway, including grinding of the existing taxiway and repaving a new surface onto the taxiway's base. The project was primarily funded through a federal grant, with a match contribution made from the Airports' share of Measure C (local sales tax) funds. † Veterans Boulevard Train Overpass
The City's Public Works Department completed an overpass as part of the overall construction of Veterans Boulevard. The overpass will enhance traffic flow on Veterans Boulevard by providing a safe passageway for Union Pacific trains. The overpass was also built to accommodate High Speed Rail trains in the future. The $18.0 million cost of the project was funded by a combination of state grants, other state funding, and Measure C monies. † Southeast Police Station
A new Police Department station was constructed in the southeast quadrant of Fresno. The new station is over 10,200 square feet. It contains multiple conference rooms, offices, locker rooms, a gym, secure parking for police vehicles, and a public counter. The $6.9 million cost of the new building was paid by the General Fund and Police Impact Fee Funds. † Econolot Parking Expansion
Airports expanded the surface parking at Fresno Yosemite International Airport with a $5.8 million project. The project entailed expanding the long-term parking area by 750 spaces and constructing a new 238 space economy lot. Both areas were equipped with revenue control systems, which included ticket dispensing machines, credit card readers, and access gates.
The entire cost of the project was funded with Airports' cash.
At June 30, 2021 , the City had commitments related to various construction projects associated with Governmental Activities totaling $ 35.6 million . Commitments connected with Business-Type Activities at fiscal year-end amounted to $ 48.7 million . The most significant of the Governmental Activities projects were the construction of the animal control center ( $13.6 million ) and the installation of various traffic signals throughout Fresno ( $12.8 million ). The most significant of the Business-Type Activities projects were the Fresno Yosemite International Airport parking garage ($14.3 million ) and Transit's Southwest Community Connector ( $7.9 million ). A complete list of projects appear in Note 12(H) - Commitments and Contingencies, page 156 under Construction and Other Significant Commitments.
Debt Administration
At the end of fiscal year 2021, the City had total long-term bond obligations, notes, and leases payable outstanding of $895.6 million. Of this amount, $ 98.4 million are obligation bonds, backed by the full faith and credit of the City, while $ 636.7 million are revenue bonds and notes of the City’s business enterprises and $ 2.0 million are tax allocation debt issued by the Successor Agency of the Redevelopment Agency. The remaining $ 158.5 million includes lease revenue bonds, notes and capital leases for general governmental projects. For detailed information on the City's debt, see Note 6-Long Term Liabilities, pages 98-117.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 25 MANAGEMENT DISCUSSION & ANALYSIS During fiscal year 2021, the City’s total bonded debt decreased by $43.0 million. This decrease was due to both normal debt service payments made during the year and the $27.6 million defeasance of the Water Fund's 2010-A bonds, netted by a new bond issuance of $17.1 million for an animal control facility. The City also took the following actions in fiscal year 2021:
• Drew down from the California State Water Resources Control Board an additional $27.7 million in already-approved loans for water transport projects and sewer projects. • Borrowed an additional $7.1 million through the Master Equipment Lease Purchase Agreement with Banc of America Public Capital Corp. $4.2 million was for public safety vehicles, $2.0 million was for smart parking meters, and $0.8 million was for Solid Waste and Parks vehicles.
The ratio of net general obligation bonded debt to taxable valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to management, citizens and investors. A comparison of these indicators (as stated in thousands) follows:
Fiscal Year
2021 2020 2019
General Bonded Debt (Par Amount) $ 98,395 $ 107,555 $ 116,160 General Bonded Debt Per Capita $ 180.00 $ 197.00 $ 216.00 Debt Service Tax Rate Per $100 Taxable Valuation $ 0.24 $ 0.28 $ 0.32 Although the City’s Charter imposes a limit on the amount of general obligation bonds that the City can have outstanding at any given time of 20% of the assessed value of property in the City, the City realizes that it cannot currently support debt of that magnitude with its current tax base and is very cautious about issuing general obligation debt. Currently, there are no general obligation bonds outstanding other than Pension Obligation Bonds issued in 2002.
FINANCIAL OUTLOOK
City management believes that the financial stability of the City is sound. The following actions give management confidence about its belief:
• The City finished fiscal year 2021 with a cash balance in its General Fund Emergency Reserve of $35.5 million. This reserve was not utilized to address the pandemic's economic effects before the end of the fiscal year, and is not planned to be utilized for the foreseeable future.
Having this reserve available provides the City with financial flexibility to address any potential revenue impacts that may occur as the pandemic continues. • Thanks to Amazon changing the ownership structure of its California fulfillment centers (including the fulfillment center in Fresno), the City is enjoying record Sales Tax receipts. It is estimated that this change by Amazon will bring an additional $30 million/year of new Sales Tax revenue to the City. These much needed funds will provide an ongoing revenue stream that will allow the City to address some long-standing resource needs.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 26 MANAGEMENT DISCUSSION & ANALYSIS • The City continues to defease debt when possible, as evidenced by the defeasing of the Water 2010-A bonds in fiscal year 2021. Defeasing these bonds provides the City with additional flexibility to address financial challenges that may arise over the next few years. • The City continues to utilize COVID mitigation funding such as CARES, ERAP, and ARPA to maintain service levels that would otherwise be impacted by the COVID-19 pandemic. In particular, the ARPA funding of $170.8 million has the potential to make lasting impacts in the City's infrastructure. These impacts would otherwise be very unlikely to achieve in the near future were it not for the large infusion of capital from the federal government.
While there is much reason to feel optimism about the City's financial future, there are issues which need to be addressed in order for that optimism to be realized:
• The City earned more revenue in fiscal year 2021 ( $930.5 million) than it has ever earned in a single fiscal year during its entire 136-year history. The City also spent more in fiscal year 2021 ($943.6 million ) than it has ever spent in any single fiscal year during its entire 136-year history. In fact, it spent more than it took in. While most of the revenue and expense growth can be explained by extraordinary measures taken to address the COVID pandemic's effects, it will be up to policy makers to insure that this practice does not become the norm. • The same relationship between revenues and expenses that was seen Citywide is evident in the General Fund. While revenues grew strongly ( 9.1%), the expenses growth rate of 19.8% was more than double that of revenues. Even though much of the expenditure growth can be explained by additional COVID mitigation spending, the challenge for policy makers will be to scale back once the COVID stimulus money subsides. If revenue growth does not return to pre-pandemic levels or if expenditure growth is not slowed, significant cuts will be needed to maintain the General Fund's financial condition.
• While the COVID-19 pandemic's financial impact had not been fully felt by the General Fund as of the end of the fiscal year, other City funds were not so fortunate. Department of Public Utilities (DPU) lost over $2 million of penalty revenue due to the prohibition on assessing fines during the pandemic. Airports lost 14% of its passenger traffic when compared to the previous fiscal year; after having lost 19% of their traffic in the previous fiscal year. Transit carried 31.1% of the passengers that it carried at its traffic peak in fiscal year 2009. Convention Center was closed throughout the fiscal year. The Stadium functioned under reduced operations. Given the added expenses these operations have recently undertaken and the ongoing nature of the pandemic, it is possible that significant fiscal adjustments to these enterprise funds will needed.
• The Net Pension Asset dropped 62.0% ($151.8 million) to its lowest level since fiscal year 2015 when it became a distinct line in the Statement of Net Position. The decrease in Net Pension Asset between fiscal year 2020 and fiscal year 2021 was matched by a similar sized decrease between fiscal year 2019 and fiscal year 2020. If another such decrease occurs during fiscal year 2022, Fresno will have a Net Pension Liability like almost every other government entity.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 27 MANAGEMENT DISCUSSION & ANALYSIS It's clear from fiscal year 2021's financial results that the COVID pandemic financial effects are unfolding and will continue to do so for the next few fiscal years. Addressing these effects requires a balanced approach, which includes: 1) restore services as revenues recover; 2) invest in deferred maintenance; 3) pay off debt; and 4) fund reserves for future economic downturns. Management believes that continued adherence to this approach will result in a financially strong organization.
CONCLUSION
Fiscal year 2021 produced some very interesting financial results. On the surface, the City appears to be weathering the pandemic's financial effects, as evidenced by Net Position remaining basically unchanged and the receipt of a record amount of revenue. Additionally, the General Fund improved its financial position, thanks to copious amounts of federal and state COVID mitigation assistance, timely increases in Sales Tax revenue, and some debt financing. However, other parts of the organization did not fare as well. In particular, each of the enterprise operations showed the continuing financial effects of the pandemic. The challenge for policy makers going forward will be to address the issues in the enterprise funds that the pandemic has surfaced, while not forgetting that the financial results in areas that showed strength in fiscal year 2021 are not likely to be permanent once the various one-time resources are extinguished.
REQUESTS FOR INFORMATION
This financial report is designed to provide citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Below is the contact information for questions about this report or requests for additional financial information.
Documents can be made accessible in alternative ADA compliant formats upon request. To request documents in alternative ADA Compliant formats, contact the Finance Department at [email protected] or (559) 621-7001.
CITY OF FRESNO
Office of the Controller/Finance Department
2600 Fresno Street, Room 2156
Fresno, California 93721-3622
www.fresno.gov
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 28 MANAGEMENT DISCUSSION & ANALYSIS
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29 CITY OF FRESNO, CALIFORNIA
Statement of Net Position
June 30, 2021
(in thousands)
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and Investments $ 280,741 $ 253,000 $ 533,741
Accounts Receivables, Net 92,736 97,276 190,012
Internal Balances 16,245 (16,245) —
Inventories 887 7,512 8,399
Prepaid Items 585 2,008 2,593
Other Assets 1,222 1,283 2,505
Property Held for Resale 4,756 — 4,756
Restricted Cash 163,160 204,614 367,774
Restricted Interest Receivable — 382 382
Loans, Notes, Leases, and Other Receivables, Net 75,980 19,050 95,030 Net Pension Asset 78,323 14,875 93,198
Capital Assets:
Not Being Depreciated 334,143 481,193 815,336
Net of Accumulated Depreciation 607,929 1,279,354 1,887,283 Total Assets 1,656,707 2,344,302 4,001,009
Deferred Outflows of Resources
Charge on Refunding 3,550 178 3,728
Deferred Outflows - Pensions 176,324 43,667 219,991
Deferred Outflows - OPEB 26,069 10,917 36,986
Total Deferred Outflows of Resources 205,943 54,762 260,705 Liabilities
Accrued Liabilities 43,034 29,457 72,491
Unearned Revenue 113,779 42,806 156,585
Deposits from Others 9,420 20,597 30,017
Other Liabilities — 4,085 4,085
Long-Term Liabilities:
Due Within One Year 86,619 21,459 108,078
Due in More than One Year 553,188 690,944 1,244,132
Total Liabilities 806,040 809,348 1,615,388
Deferred Inflows of Resources
Pension Revenue Applicable to Future Years 16,075 534 16,609 Unamortized OPEB Expense 17,662 7,318 24,980
Total Deferred Inflows of Resources 33,737 7,852 41,589 Net Position
Net Investment in Capital Assets 794,759 1,120,876 1,915,635 Restricted for:
General Government 14,691 — 14,691
Public Protection 1,974 — 1,974
Public Ways and Facilities 99,376 — 99,376
Culture and Recreation 2,837 — 2,837
Community Development 145,392 — 145,392
Emergency, 27th Pay Period, Housing, Asset Sale Reserve 40,655 — 40,655 Unrestricted (76,811) 460,988 384,177
Total Net Position $ 1,022,873 $ 1,581,864 $ 2,604,737
The notes to the financial statements are an integral part of this statement. 30 CITY OF FRESNO, CALIFORNIA
Statement of Activities
Fiscal Year Ended June 30, 2021
(in thousands)
Net (Expense) Revenue and Changes in
Net Position
Program Revenue Primary Government
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government
Governmental Activities
General Government $ 90,218 $ 15,315 $ 955 $ 76,083 $ 2,135 $ — $ 2,135 Public Protection 305,172 16,544 4,816 2,543 (281,269) — (281,269) Public Ways and Facilities 123,068 27,060 28,629 54,785 (12,594) — (12,594) Culture and Recreation 30,882 1,364 395 (54) (29,177) — (29,177) Community Development 41,053 13,050 5,598 1,707 (20,698) — (20,698) Interest on Long-term Debt 12,552 — — — (12,552) — (12,552) Total Governmental Activities 602,945 73,333 40,393 135,064 (354,155) — (354,155) Business-Type Activities
Water System 100,181 127,651 336 1,084 — 28,890 28,890 Sewer System 74,428 77,940 — 4,219 — 7,731 7,731 Solid Waste Management 41,713 29,132 191 — — (12,390) (12,390) Transit 66,135 (2,328) 47,925 22,041 — 1,503 1,503 Airports 41,090 25,991 7,882 2,540 — (4,677) (4,677) Fresno Convention Center 5,096 (2) — — — (5,098) (5,098) Community Sanitation 8,698 8,786 — — — 88 88
Parks and Recreation 572 411 — — — (161) (161)
Stadium 2,739 580 — — — (2,159) (2,159)
Total Business-Type Activities 340,652 268,161 56,334 29,884 — 13,727 13,727 Total Primary Government $ 943,597 $ 341,494 $ 96,727 $ 164,948 $ (354,155) $ 13,727 $ (340,428) General Revenues:
Taxes and Licenses:
Property Taxes 149,822 — 149,822
Sales Taxes - Shared Revenues 125,279 — 125,279
Franchise Taxes 17,729 — 17,729
Business Tax 20,577 — 20,577
Room Tax 12,566 — 12,566
Other Taxes 1,825 — 1,825
Investment Earnings 1,786 (2,206) (420)
Transfers (7,781) 7,781 —
Total General Revenues and
Transfers 321,803 5,575 327,378
Change in Net Position (32,352) 19,302 (13,050)
Net Position - Beginning 1,055,225 1,562,562 2,617,787 Net Position - Ending $ 1,022,873 $ 1,581,864 $ 2,604,737 The notes to the financial statements are an integral part of this statement. 31 This page intentionally left blank
32 This page intentionally left blank
33 CITY OF FRESNO, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2021
(in thousands)
General
Fund
Grants
Special
Revenue Fund
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and Investments $ 54,681 $ 6,319 $ 120,959 $ 181,959 Receivables, Net 17,920 292 727 18,939
Grants Receivable 6 13,566 1,277 14,849
Intergovernmental Receivables 43,490 — 5,912 49,402 Due From Other Funds 6,206 1,533 1,814 9,553
Advances to Other Funds, Net — 8,902 62 8,964
Property Held for Resale — — 4,756 4,756
Restricted Cash 40,655 103,730 17,933 162,318
Loans, Notes, Leases, Other Receivables, Net — 55,366 20,614 75,980 Total Assets $ 162,958 $ 189,708 $ 174,054 $ 526,720
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities
Accrued Liabilities $ 12,677 $ 14,115 $ 7,837 $ 34,629
Unearned Revenue 3,298 109,904 — 113,202
Due to Other Funds 1,084 1 2,641 3,726
Advances From Other Funds 11,497 — 3,236 14,733
Deposits From Others 9,416 — 4 9,420
Total Liabilities 37,972 124,020 13,718 175,710
Deferred Inflows of Resources
Unavailable Revenue - Property Tax 5,997 — — 5,997
Unavailable Revenue - Other 16,046 13,059 1,548 30,653 Total Deferred Inflows of Resources 22,043 13,059 1,548 36,650 Fund Balances
Restricted — 106,083 149,241 255,324
Committed 40,655 — — 40,655
Assigned 19,249 — 12,843 32,092
Unassigned 43,039 (53,454) (3,296) (13,711)
Total Fund Balances 102,943 52,629 158,788 314,360
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 162,958 $ 189,708 $ 174,054 $ 526,720 The notes to the financial statements are an integral part of this statement. 34 CITY OF FRESNO, CALIFORNIA
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2021
(in thousands)
Total Governmental Fund Balances $ 314,360
Amounts reported for Governmental Activities in the Statement of Net Position are different because:
The Net Pension Asset is not a current financial resource, and therefore, is not reported in the funds. 78,323 Capital assets used in Governmental Activities are not current financial resources, and therefore, are not reported in the funds. 942,072
Prepaids in Governmental Activities are not current financial resources, and therefore, are not reported in the funds. 585
Deferred outflows of resources reported in the Statement of Net Position 205,943 Accrued interest on long-term debt is not accrued in the funds, but rather, it is recognized as an expenditure when due. (1,953)
Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. (630,034)
Difference between deferred inflows of resources reported in the Statement of Net Position and unavailable revenue reported in the Balance Sheet - Governmental Funds 2,913 Prepaid bond insurance and original issue premium and discount represent costs associated with the issuance of long-term debt, which are deferred and amortized over the period the debt is outstanding.
These costs are reported as expenditures of the current period in the funds. (8,552) Internal service funds are used by management to charge the costs of various activities, such as fleet and insurance to individual funds. Assets and liabilities of certain internal service funds are included in Governmental Activities in the Statement of Net Position. 119,216 Net Position of Governmental Activities $ 1,022,873
The notes to the financial statements are an integral part of this statement. 35 CITY OF FRESNO, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Fiscal Year Ended June 30, 2021
(in thousands)
General
Fund
Grants
Special
Revenue Fund
Other
Governmental
Funds
Total
Governmental
Funds
Revenues
Taxes $ 325,650 $ — $ 40,995 $ 366,645
Licenses and Permits 9,276 — — 9,276
Intergovernmental 5,988 102,121 18,282 126,391
Charges for Services 32,682 167 31,613 64,462
Fines 1,792 — — 1,792
Use of Money and Property 634 (156) 1,206 1,684
Miscellaneous 960 627 1,538 3,125
Total Revenues 376,982 102,759 93,634 573,375
Expenditures
Current:
General Government 58,611 10,730 1,870 71,211
Public Protection 250,469 3,776 2,390 256,635
Public Ways and Facilities 7,909 16,552 38,725 63,186 Culture and Recreation 23,749 953 1,429 26,131
Community Development 31,217 6,997 1,769 39,983
Capital Outlay 13,360 10,665 30,751 54,776
Debt Service:
Principal 2,354 — 18,837 21,191
Interest 410 — 12,192 12,602
Total Expenditures 388,079 49,673 107,963 545,715
Excess (Deficiency) of Revenues Over (Under) Expenditures (11,097) 53,086 (14,329) 27,660 Other Financing Sources (Uses)
Transfers In 74,987 80 41,630 116,697
Transfers Out (36,958) (80,236) (11,661) (128,855)
Long-Term Debt Issued — — 17,145 17,145
Premium on Debt Issued — — 2,773 2,773
Capital Lease Financing 83 — — 83
Total Other Financing Sources (Uses) 38,112 (80,156) 49,887 7,843 Net Changes in Fund Balances 27,015 (27,070) 35,558 35,503 Fund Balances - Beginning 75,928 79,699 123,230 278,857 Fund Balances - Ending $ 102,943 $ 52,629 $ 158,788 $ 314,360 The notes to the financial statements are an integral part of this statement. 36 CITY OF FRESNO, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Fiscal Year Ended June 30, 2021
(in thousands)
Net change in fund balances - total governmental funds $ 35,503 Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which cost of capital assets of $29,973 was exceeded by depreciation of $47,149 in the current period. (17,176) Some expenses, retention payable, and Net OPEB Liability reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. (8,345) In the Statement of Net Position, acquiring debt increases Long-Term Liabilities and does not affect the Statement of Activities. Additionally, repayment of principal is an expenditure in the governmental funds but reduces liability in the Statement of Net Position. 1,191 Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the Statement of Activities, however, which is presented on the accrual basis of accounting, expenses and liabilities are reported regardless of when financial resources are available. In addition, interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. (2,526)
Changes to the net pension asset and pension related deferred outflows and inflows of resources do not provide current financial resources, and therefore, are not reported in the governmental funds. (36,151)
Revenues recognized in the Statement of Activities in previous years and recognized in the governmental fund statements in the current year were less than revenues recognized in the Statement of Activities in the current year but not reported in the governmental funds as they do not provide current financial resources. 2,826 Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet, to individual funds. The net revenues of certain activities of internal service funds are reported with Governmental Activities in the Statement of Activities. (7,674)
Change in net position of Governmental Activities $ (32,352) The notes to the financial statements are an integral part of this statement. 37 CITY OF FRESNO, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2021
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management Transit Airports
Assets
Current Assets:
Cash and Investments $ 121,291 $ 95,440 $ 6,704 $ 332 $ 22,530 Interest Receivable 689 464 135 140 189
Accounts Receivables, Net 21,672 11,629 5,965 376 3,073 Grants Receivable — — — 31,994 1,806
Inventories 1,762 4,729 — 667 323
Prepaid Items 1,267 91 44 19 460
Intergovernmental Receivables — 874 — 13,027 135
Due from Other Funds — — — — —
Restricted Cash — — — — —
Total Current Assets 146,681 113,227 12,848 46,555 28,516 Noncurrent Assets:
Restricted:
Cash and Cash Equivalents 58,970 52,388 16,377 25,049 39,935 Interest Receivable 174 208 — — —
Total Restricted Assets 59,144 52,596 16,377 25,049 39,935 Other Assets:
Other Receivables 1,229 5,840 — — —
Other Assets — 699 — — 226
Net Pension Asset 3,454 3,645 2,252 4,291 444
Unamortized CVP Water Settlement 808 — — — —
Solid Waste Rate Payers — — 11,172 — —
Advances to Other Funds, Net 4,965 13,417 — — —
Total Other Assets 10,456 23,601 13,424 4,291 670
Capital Assets:
Land and Intangibles 34,029 17,513 2,803 2,215 10,929 Buildings, Systems and Improvements 50,563 556,160 1,568 74,627 224,327 Machinery and Equipment 901 6,024 6,039 74,536 4,983 Infrastructure 657,959 282,291 — — 70,807
Construction in Progress 235,390 123,394 2,270 11,424 35,872 Less Accumulated Depreciation (235,880) (334,192) (3,700) (62,089) (138,205) Total Capital Assets, Net 742,962 651,190 8,980 100,713 208,713 Total Noncurrent Assets 812,562 727,387 38,781 130,053 249,318 Total Assets 959,243 840,614 51,629 176,608 277,834 Deferred Outflows of Resources
Charge on Refunding — — — — 12
Pension Contributions 1,665 1,441 1,077 2,856 880
Deferred Outflows - Pension 6,487 5,609 4,157 10,914 3,436 Deferred Outflows - OPEB 1,782 1,658 1,147 3,968 939 Total Deferred Outflows of Resources $ 9,934 $ 8,708 $ 6,381 $ 17,738 $ 5,267 The notes to the financial statements are an integral part of this statement. 38 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Total
Internal
Service
Funds
Assets
Current Assets:
$ 590 $ 112 $ 2,694 $ 249,693 $ 102,089 Cash and Investments — 16 14 1,647 498 Interest Receivable
1,360 469 1,743 46,287 1,651 Accounts Receivables, Net — — — 33,800 — Grants Receivable
31 — — 7,512 887 Inventories
121 — 6 2,008 585 Prepaid Items
— — — 14,036 — Intergovernmental Receivables
— — — — 3,973 Due from Other Funds
2,084 — — 2,084 — Restricted Cash
4,186 597 4,457 357,067 109,683 Total Current Assets Noncurrent Assets:
Restricted:
764 3,077 781 197,341 6,031 Cash and Investments
— — — 382 — Interest Receivable
764 3,077 781 197,723 6,031 Total Restricted Assets Other Assets:
— — — 7,069 — Other Receivables
131 212 15 1,283 — Other Assets
— — 639 14,725 756 Net Pension Asset
— — — 808 — Unamortized CVP Water Settlement
— — — 11,172 — Solid Waste Rate Payers
— — — 18,382 — Advances to Other Funds, Net
131 212 654 53,439 756 Total Other Assets
Capital Assets:
4,163 710 12 72,374 — Land and Intangibles
86,632 43,489 3,812 1,041,178 6,617 Buildings, Systems and Improvements 309 1,599 67 94,458 128,373 Machinery and Equipment — — — 1,011,057 — Infrastructure
100 267 — 408,717 26,532 Construction in Progress
(71,370) (19,804) (2,099) (867,339) (79,202) Less Accumulated Depreciation 19,834 26,261 1,792 1,760,445 82,320 Total Capital Assets, Net 20,729 29,550 3,227 2,011,607 89,107 Total Noncurrent Assets 24,915 30,147 7,684 2,368,674 198,790 Total Assets
Deferred Outflows of Resources
86 24 56 178 — Charge on Refunding
— — 404 8,323 2,327 Pension Contributions
— — 1,550 32,153 9,302 Deferred Outflows - Pension
20 — 488 10,002 2,604 Deferred Outflows - OPEB
$ 106 $ 24 $ 2,498 $ 50,656 $ 14,233 Total Deferred Outflows of Resources The notes to the financial statements are an integral part of this statement. 39 CITY OF FRESNO, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2021 (continued)
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management Transit Airports
Liabilities
Current Liabilities:
Accrued Liabilities $ 5,607 $ 5,957 $ 1,161 $ 5,542 $ 7,463 Accrued Compensated Absences and HRA 290 321 290 702 299 Liability for Self-Insurance — — — — —
Unearned Revenue 7,147 12,461 — 22,197 —
Due to Other Funds 319 294 1,098 209 86
Bonds Payable — — — — 2,885
Accrued Closure Cost — — 800 — —
Capital Lease Obligations — — — — —
Notes Payable 9,077 1,003 — — —
Total Current Liabilities 22,440 20,036 3,349 28,650 10,733 Noncurrent Liabilities
Accrued Compensated Absences and HRA 1,991 1,818 1,306 2,491 1,557 Capital Lease Obligations — — — — —
Liability for Self-Insurance — — — — —
Bonds Payable 90,241 885 — — 75,498
Accreted Interest Payable on Capital
Appreciation Bonds — — — — —
Notes Payable 327,615 86,858 — — —
CVP Litigation Settlement 113 — — — —
Pollution Remediation Obligation — — — — 451
Other Liabilities — 4,085 — — —
Accrued Closure Costs — — 11,304 — —
Advances from Other Funds — — 3,711 — —
Net OPEB Liability 7,331 6,932 4,782 15,851 3,777
Deposits Held for Others 1,095 11,152 — — 455
Total Noncurrent Liabilities 428,386 111,730 21,103 18,342 81,738 Total Liabilities 450,826 131,766 24,452 46,992 92,471 Deferred Inflows of Resources
Unamortized Pension Expense 84 77 55 144 120
Unamortized OPEB Expense 1,202 1,128 779 2,633 625 Total Deferred Inflows of Resources 1,286 1,205 834 2,777 745 Net Position
Net Investment in Capital Assets 314,604 562,443 8,980 100,713 130,342 Unrestricted (Deficit) 202,461 153,908 23,744 43,864 59,543 Total Net Position (Deficit) $ 517,065 $ 716,351 $ 32,724 $ 144,577 $ 189,885 The notes to the financial statements are an integral part of this statement. 40 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Totals
Internal
Service
Funds
Liabilities
Current Liabilities:
$ 1,066 $ 548 $ 403 $ 27,747 $ 8,161 Accrued Liabilities — — 51 1,953 533 Accrued Compensated Absences and HRA — — — — 47,038 Liability for Self-Insurance
23 — — 41,828 1,555 Unearned Revenue
— — 735 2,741 7,059 Due to Other Funds
3,784 1,770 55 8,494 — Bonds Payable
— — — 800 — Accrued Closure Cost
— — — — 6,276 Capital Lease Obligations
— — — 10,080 — Notes Payable
4,873 2,318 1,244 93,643 70,622 Total Current Liabilities Noncurrent Liabilities
28 — 452 9,643 5,056 Accrued Compensated Absences and HRA — — — — 16,559 Capital Lease Obligations
— — — — 145,195 Liability for Self-Insurance
14,438 22,751 1,564 205,377 — Bonds Payable
Accreted Interest Payable on Capital
3,355 — — 3,355 — Appreciation Bonds
— — — 414,473 — Notes Payable
— — — 113 — CVP Litigation Settlement
— — — 451 — Pollution Remediation Obligation
— — — 4,085 — Other Liabilities
— — — 11,304 — Accrued Closure Costs
— — — 3,711 — Advances from Other Funds
83 — 1,876 40,632 10,559 Net OPEB Liability
3,411 — — 16,113 4,484 Deposits Held for Others
21,315 22,751 3,892 709,257 181,853 Total Noncurrent Liabilities 26,188 25,069 5,136 802,900 252,475 Total Liabilities Deferred Inflows of Resources
— — 22 502 106 Unamortized Pension Expense
14 — 317 6,698 1,742 Unamortized OPEB Expense
14 — 339 7,200 1,848 Total Deferred Inflows of Resources Net Position
1,699 1,764 229 1,120,774 60,334 Net Investment in Capital Assets (2,880) 3,338 4,478 488,456 (101,634) Unrestricted (Deficit) $ (1,181) $ 5,102 $ 4,707 $ 1,609,230 $ (41,300) Total Net Position (Deficit) Some amounts reported for Business-Type Activities in
the Statement of Net Position are different due to certain Internal Service Fund assets and liabilities being
included with Business-Type Activities. (27,366)
Net position of Business-Type Activities $ 1,581,864
The notes to the financial statements are an integral part of this statement. 41 CITY OF FRESNO, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management
Transit Airports
Operating Revenues:
Charges for Services $ 127,651 $ 77,940 $ 29,132 $ (2,328) $ 21,807 Operating Expenses:
Cost of Services 46,431 28,111 21,838 45,184 15,287 Administration 10,602 16,519 16,341 14,454 6,726
Depreciation 29,773 24,865 588 5,385 10,845
Total Operating Expenses 86,806 69,495 38,767 65,023 32,858 Operating Income (Loss) 40,845 8,445 (9,635) (67,351) (11,051) Non-Operating Revenue (Expenses):
Operating Grants 336 — 191 47,925 7,882
Interest Income 2,154 1,622 374 218 544
Net Increase (Decrease) in Cash Fair Value (2,782) (2,342) (534) (835) (660) Interest Expense (11,300) (391) — — (3,542)
Passenger Facility Charges — — — — 2,689
Customer Facility Charges — — — — 1,494
Gain (Loss) on Disposal of Capital Assets (62) (2,203) (241) (87) (4,168) Total Non-Operating Revenue (Expenses) (11,654) (3,314) (210) 47,221 4,239 Income (Loss) Before Contributions & Transfers 29,191 5,131 (9,845) (20,130) (6,812) Capital Contributions 1,084 4,219 — 22,041 2,540
Transfers In 165 165 1,870 24 46
Transfers Out (383) (353) (1,036) (1,464) (231)
Change in Net Position 30,057 9,162 (9,011) 471 (4,457) Total Net Position (Deficit) - Beginning 487,008 707,189 41,735 144,106 194,342 Total Net Position (Deficit) - Ending $ 517,065 $ 716,351 $ 32,724 $ 144,577 $ 189,885 The notes to the financial statements are an integral part of this statement. 42 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center Stadium
Other
Enterprise
Funds Totals
Internal
Service
Funds
Operating Revenues:
$ (2) $ 580 $ 9,197 $ 263,977 $ 180,330 Charges for Services Operating Expenses:
1,046 139 5,951 163,987 159,664 Cost of Services
673 15 2,765 68,095 30,702 Administration
2,340 1,275 185 75,256 9,635 Depreciation
4,059 1,429 8,901 307,338 200,001 Total Operating Expenses (4,061) (849) 296 (43,361) (19,671) Operating Income (Loss) Non-Operating Revenue (Expenses):
— — — 56,334 — Operating Grants
3 44 38 4,997 1,332 Interest Income
(4) (50) (36) (7,243) (919) Net Increase (Decrease) in Cash Fair Value (1,038) (1,310) (63) (17,644) (773) Interest Expense — — — 2,689 — Passenger Facility Charges
— — — 1,494 — Customer Facility Charges
— — — (6,761) (889) Gain (Loss) on Disposal of Capital Assets (1,039) (1,316) (61) 33,866 (1,249) Total Non-Operating Revenue (Expenses) (5,100) (2,165) 235 (9,495) (20,920) Income (Loss) Before Contributions & Transfers — — — 29,884 — Capital Contributions
6,427 3,171 747 12,615 7,518 Transfers In
— — (1,082) (4,549) (3,426) Transfers Out
1,327 1,006 (100) 28,455 (16,828) Change in Net Position (2,508) 4,096 4,807 (24,472) Total Net Position (Deficit) - Beginning $ (1,181) $ 5,102 $ 4,707 $ (41,300) Total Net Position (Deficit) - Ending Some amounts reported for Business-Type
Activities in the Statement of Activities are
different due to the net revenue (expenses) of
certain Internal Service Funds being reported
with Business-Type Activities. (9,153)
Change in net position of Business-Type
Activities $ 19,302
The notes to the financial statements are an integral part of this statement. 43 CITY OF FRESNO, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management
Transit Airports
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 126,858 $ 70,728 $ 31,656 $ 4,416 $ 23,177 Cash Received from Interfund Services Provided 313 159 73 38 — Cash Payments (to) from Suppliers for Services (31,207) (22,964) (5,645) (13,758) 29,021 Cash Paid for Interfund Services Used (11,329) (9,787) (17,432) (9,473) (4,164) Cash Payments to Employees for Services (16,780) (15,005) (13,534) (38,758) (10,256) Cash Payments for Claims and Refunds — — — — —
Net Cash Provided by (Used for) Operating Activities 67,855 23,131 (4,882) (57,535) 37,778
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Capital Contributions 1,084 5,661 — 18,966 2,540
Passenger and Customer Facility Charges — — — — 4,182 Interest Payments on Capital Debt (11,838) (486) — — (3,581) Proceeds from Issuance of Capital Debt 8,926 20,744 — — — Payment for Cost of Issuance — — — — —
Principal Payments on Capital Debt-Bonds (6,390) (6,050) — — (2,721) Retirement of Debt (21,245) — — — —
Principal Payments on Capital Debt-Notes (11,220) (993) — — — Principal Payments on Capital Lease Obligations — — — — — Proceeds (Loss) from Sale of Capital Assets 10 11 — 22 — Acquisition and Construction of Capital Assets (30,003) (16,290) (1,874) (7,665) (65,944) Net Cash Provided by (Used for) Capital and Related
Financing Activities (70,676) 2,597 (1,874) 11,323 (65,524)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
Operating Grants 336 — 191 33,181 7,743
Borrowing Receipt from (Payment to) Other Funds — — — — — Transfers In 165 165 1,870 24 46
Transfers Out (383) (353) (1,036) (1,464) (231)
Net Cash Provided by (Used for) Non-Capital
Financing Activities 118 (188) 1,025 31,741 7,558
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and Dividends Received (Paid) on Investments (430) (749) (98) (513) (27) Net Cash Provided by (Used for) Investing Activities (430) (749) (98) (513) (27) Net Increase (Decrease) in Cash and Cash Equivalents (3,133) 24,791 (5,829) (14,984) (20,215) Cash and Cash Equivalents, Beginning of Year 183,394 123,037 28,910 40,365 82,680 Cash and Cash Equivalents, End of Year $ 180,261 $ 147,828 $ 23,081 $ 25,381 $ 62,465 The notes to the financial statements are an integral part of this statement. 44 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Totals
Internal
Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
$ 170 $ 111 $ 10,386 $ 267,502 $ 72,392 Cash Received from Customers — — — 583 129,288 Cash Received from Interfund Services Provided (971) 209 (2,219) (47,534) (43,064) Cash Payments (to) from Suppliers for Services — — (1,946) (54,131) (7,695) Cash Paid for Interfund Services Used (634) — (4,810) (99,777) (30,020) Cash Payments to Employees for Services — — — — (91,275) Cash Payments for Claims and Refunds (1,435) 320 1,411 66,643 29,626 Net Cash Provided by (Used for) Operating Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
— — — 28,251 6,185 Capital Contributions
— — — 4,182 — Passenger and Customer Facility Charges (1,570) (1,543) (80) (19,098) (732) Interest Payments on Capital Debt — — — 29,670 — Proceeds from Issuance of Capital Debt — — 6 6 — Payment for Cost of Issuance
(3,596) (1,670) (55) (20,482) — Principal Payments on Capital Debt-Bonds — — — (21,245) — Retirement of Debt
— — — (12,213) — Principal payments on Capital Debt-Notes — — — — (5,882) Principal Payments on Capital Lease Obligations — — — 43 514 Proceeds from Sale of Capital Assets
(61) (267) 19 (122,085) (25,464) Acquisition and Construction of Capital Assets (5,227) (3,480) (110) (132,971) (25,379)
Net Cash Provided by (Used for) Capital and Related
Financing Activities
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
— — — 41,451 — Operating Grants
— — (469) (469) 2,592 Borrowing Receipt from (Payment to) Other Funds 6,427 3,171 747 12,615 7,518 Transfers In
— — (1,082) (4,549) (3,425) Transfers Out
6,427 3,171 (804) 49,048 6,685
Net Cash Provided by (Used for) Non-Capital
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
(1) (3) — (1,821) 460 Interest and Dividends Received (Paid) on Investments (1) (3) — (1,821) 460 Net Cash Provided by (Used for) Investing Activities (236) 8 497 (19,101) 11,392 Net Increase (Decrease) in Cash and Cash Equivalents 3,674 3,181 2,978 468,219 96,728 Cash and Cash Equivalents, Beginning of Year $ 3,438 $ 3,189 $ 3,475 $ 449,118 $ 108,120 Cash and Cash Equivalents, End of Year (Continued)
The notes to the financial statements are an integral part of this statement. 45 CITY OF FRESNO, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
Fiscal Year Ended June 30, 2021 (Continued)
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management
Transit Airports
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities:
Operating income (loss) $ 40,845 $ 8,445 $ (9,635) $ (67,351) $ (11,051) Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense 29,773 24,865 588 5,385 10,845 Change in assets and liabilities:
Decrease (increase) in accounts receivable (2,326) (1,446) (1,026) (228) (617) Decrease (increase) in other receivables 1,058 (312) 912 — — Decrease (increase) in due from other funds — — — — — Decrease (increase) in due from other governments — (14) — (2,657) — Decrease (increase) in material and supplies inventory 239 (398) — 118 20 Decrease (increase) in prepaid items (325) (23) (44) 24 131 Decrease (increase) in net pension asset & deferred outflows 2,644 2,522 1,750 4,771 1,259 Decrease (increase) in advances to other funds (3,946) (8,885) 3,712 — — Decrease (increase) in prepaid insurance — 9 — — 18 (Decrease) increase in accounts payable (126) (1,933) (138) (124) 37,039 (Decrease) increase in salaries payable 124 (14) 37 48 186 (Decrease) increase in due to other funds 75 38 160 31 29 (Decrease) increase in other liabilities — 498 — — — (Decrease) increase in retention payable — — — 35 — (Decrease) increase in accrued closure costs — — (1,044) — — (Decrease) increase in unearned revenue — — — 2,973 — (Decrease) increase in liability for self-insurance — — — — — (Decrease) increase in deposits — — — — 20
(Decrease) increase in pollution remediation liability — — — — (35) (Decrease) increase in net OPEB liability 190 175 121 429 101 (Decrease) increase in deferred inflows of resources (369) (396) (275) (989) (167) Net Cash Provided by (Used For) Operating Activities $ 67,856 $ 23,131 $ (4,882) $ (57,535) $ 37,778 Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:
Cash and Investments:
Unrestricted $ 121,291 $ 95,440 $ 6,704 $ 332 $ 22,530
Restricted - Current and Noncurrent 58,970 52,388 16,377 25,049 39,935 Cash and Cash Equivalents at End of Year on Statement
of Cash Flows $ 180,261 $ 147,828 $ 23,081 $ 25,381 $ 62,465 Noncash Investing, Capital, and Financing Activities:
Acquisition/construction of capital assets on accounts payable $ 789 $ 2,807 $ — $ 2,300 $ 5,347 Amortization of bond premium, discount and loss on refunding 801 1 — — (41) Borrowing under capital lease — — — — —
Decrease (increase) in fair value of investments (2,247) (1,844) (299) (329) (558) Developer and other capital contributions — 582 — — — Decrease in unamortized CVP water settlement receivable and decrease in CVP litigation settlement payable (113) — — — — The notes to the financial statements are an integral part of this statement. 46 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Totals
Internal
Service
Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities:
$ (4,061) $ (849) $ 296 $ (43,361) $ (19,671) Operating income (loss) Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:
2,340 1,275 185 75,256 9,635 Depreciation expense
Change in assets and liabilities:
(1,264) (469) (275) (7,651) (317) Decrease (increase) in accounts receivable — — — 1,658 — Decrease (increase) in other receivables — — — — (694) Decrease (increase) in due from other funds — — — (2,671) — Decrease (increase) in due from other governments 36 — — 15 (68) Decrease (increase) in material and supplies inventory 3 — (6) (240) (381) Decrease (increase) in prepaid items 2 — 714 13,662 3,517 Decrease (increase) in net pension asset & deferred outflows — 21 — (9,098) — Decrease (increase) in advances to other funds — — 1 28 — Decrease (increase) in prepaid insurance 173 342 74 35,307 (282) (Decrease) increase in accounts payable (34) — 22 369 461 (Decrease) increase in salaries payable (30) — 539 842 2 (Decrease) increase in due to other funds — — — 498 — (Decrease) increase in other liabilities — — — 35 — (Decrease) increase in retention payable — — — (1,044) — (Decrease) increase in accrued closure costs (33) — — 2,940 373 (Decrease) increase in unearned revenue — — — — 37,825 (Decrease) increase in liability for self-insurance 1,430 — — 1,450 (750) (Decrease) increase in deposits — — — (35) — (Decrease) increase in pollution remediation liability 2 — 54 1,072 280 (Decrease) increase in net OPEB liability 1 (193) (2,388) (304) (Decrease) increase in deferred inflows of resources $ (1,435) $ 320 $ 1,411 $ 66,644 $ 29,626 Net Cash Provided by (Used For) Operating Activities Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:
Cash and Investments:
$ 590 $ 112 $ 2,694 $ 249,693 $ 102,089 Unrestricted
2,848 3,077 781 199,425 6,031 Restricted - Current and Noncurrent Cash and Cash Equivalents at End of Year on Statement
$ 3,438 $ 3,189 $ 3,475 $ 449,118 $ 108,120 of Cash Flows Noncash Investing, Capital, and Financing Activities:
$ — $ — $ — $ 11,243 $ 629 Acquisition/construction of capital assets on accounts payable (288) (223) (17) 233 — Amortization of bond premium, discount and loss on refunding — — — — — Borrowing under capital lease
— (41) (35) (5,353) (960) Decrease (increase) in fair value of investments — — — 582 — Developer and other capital contributions — — — (113) —
Decrease in unamortized CVP water settlement receivable and decrease in CVP litigation settlement payable
The notes to the financial statements are an integral part of this statement. 47 CITY OF FRESNO, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds - Trust and Custodial Funds
June 30, 2021
(in thousands)
Pension
Trust Funds
Successor Agency
to the Fresno
Redevelopment
Agency Private-
Purpose Trust Fund
Custodial
Funds
Assets
Cash and Investments $ 4,994 $ 2,923 $ 2,668
Restricted Cash and Investments Held by Fiscal Agent — 447 594 Total Cash and Investments 4,994 3,370 3,262
Receivables:
Receivables for Investments Sold 69,268 — —
Interest and Dividends Receivable 5,267 — 9
Other Receivables 39,557 46 —
Due from Other Governments — — 766
Total Receivables 114,092 46 775
Investments, at Fair Value:
Short-Term Investments 57,917 — —
Domestic Equity 1,383,292 — —
Corporate Bonds 381,524 — —
International Developed Market Equities 588,786 — —
International Emerging Market Equities 144,512 — —
Government Bonds 149,660 — —
Alternatives 610,601 — —
Real Estate 465,224 — —
Total Investments 3,781,516 — —
Collateral Held for Securities Lent 176,003 — —
Capital Assets, Net of Accumulated Depreciation 1,108 — — Other Assets 244 — —
Property Held for Resale — 293 —
Total Assets 4,077,957 3,709 4,037
Deferred Outflows of Resources
Charge on Refunding — 5 —
Pension Contributions — 92 —
Total Deferred Outflows of Resources — 97 —
Liabilities
Accrued Liabilities 76,858 178 69
Collateral Held for Securities Lent 176,003 — —
Deposits Held for Others — — 3,968
Other Liabilities 3,489 — —
Long-Term Debt:
Due Within One Year — 482 —
Due in More than One Year — 1,600 —
Due To Other Funds (City of Fresno) — 8,902 —
Net Pension Liability — 574 —
Total Liabilities 256,350 11,736 4,037
Deferred Inflows of Resources
Unamortized Pension Expense — 30 —
Net Position
Restricted for Pension Benefits 3,821,607 — —
Held in Trust for Redevelopment Dissolution — (7,960) — Total Net Position $ 3,821,607 $ (7,960) $ —
The notes to the financial statements are an integral part of this statement. 48 CITY OF FRESNO, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds - Trust Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Pension
Trust Funds
Successor Agency
to the Fresno
Redevelopment
Agency Private-
Purpose Trust Fund
Additions
Contributions:
Employer $ 46,459 $ —
System Members 24,006 —
Total Contributions 70,465 —
Investment Income:
Net Appreciation in Fair Value of Investments 882,014 — Interest 18,708 —
Dividends 28,322 —
Other Investment Related 177 —
Total Investment Income 929,221 —
Less Investment Expense (30,098) —
Total Net Investment Income 899,123 —
Securities Lending Income:
Securities Lending Earnings 541 —
Less Securities Lending Expense (108) —
Net Securities Lending Income 433 —
Property Taxes — 3,109
Other Income — 1
Total Additions 970,021 3,110
Deductions
Benefit Payments (including post retirement
supplemental benefits) 137,205 —
Refund of Contributions 3,004 —
Redevelopment Expenses — 577
General and Administrative Expenses 4,341 319
Interest on Debt — 219
Total Deductions 144,550 1,115
Change in Net Position 825,471 1,995
Net Position - Beginning 2,996,136 (9,955)
Net Position - Ending $ 3,821,607 $ (7,960)
The notes to the financial statements are an integral part of this statement. 49 This page intentionally left blank
50 Note 1. Summary of Significant Accounting Policies
The financial statements of the City of Fresno (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The more significant accounting policies of the City are described below.
A. Reporting Entity
The City is a political subdivision chartered by the State of California and, as such, can exercise the powers specified by the Constitution and laws of the State of California. The City operates under its own Charter and is governed by a directly elected strong Mayor and a seven-member City Council (Council). The City Manager serves as the head of the administrative branch of the City and is appointed by the Mayor.
As required by GAAP, these basic financial statements present the financial status of the City (the primary government) and its component units (entities for which the City is considered to be financially accountable). The blended component units, although legally separate entities, are substantially part of the City's operations. Thus, data from these units are combined with data of the primary government.
As a government agency, the City is exempt from both federal income taxes and state franchise taxes.
B. Government-Wide and Fund Financial Statements
The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its blended component units. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the consolidation process. Governmental Activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from Business-Type Activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the clearly identifiable direct expenses of a given function or segment is offset by program revenues. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. The accounts of the City are organized on the basis of funds. A fund is a separate accounting entity with a self- balancing set of accounts. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions, or limitations. Separate financial CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 51 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES statements are provided for governmental funds, proprietary funds, and fiduciary funds (though the latter are excluded from the Government-Wide Financial Statements). Major individual governmental funds and major individual enterprise funds are reported by separate columns in the Fund Financial Statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The Government-Wide, Proprietary Fund, and Trust Fund Financial Statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Proprietary Funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services in connection with the fund’s principal, ongoing operations. The principal operating revenues of the City’s enterprise and internal service funds are charges to customers for sales and for services. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Custodial Fund Financial Statements report only assets and liabilities. They use the accrual basis of accounting to recognize receivables and payables.
Governmental Fund Financial Statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.
The City considers property tax revenues, local taxes, licenses, interest, and other intergovernmental revenues to be available if they are collected within 60 days of the end of the current fiscal period.
All other revenue items are considered to be measurable and available only when the City receives cash. Expenditures generally are recorded when a liability is incurred. However, debt service, vacation, sick leave, claims and judgments expenditures are recorded only when payment is due.
The City reports on the following major governmental funds, proprietary (enterprise) funds, and fiduciary funds:
1. Major Governmental Funds
General Fund is the City’s primary operating fund. It accounts for all financial resources of the City except those required to be accounted for in another fund.
Grants Special Revenue Fund accounts for grants received from federal, state, and other agencies, which are to be used for various purposes identified within the confines of the individual grant.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 52 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. Major Proprietary (Enterprise) Funds
Water System Fund accounts for the construction, operation, and maintenance of the City's water distribution system. Revenues are derived from water service fees and various installation charges.
Sewer System Fund accounts for the construction, operation, and maintenance of the City's sewer system. Revenues are derived from sewer service fees and various installation charges.
Solid Waste Management Fund accounts for the operations of the City's residential solid waste disposal service. Revenues are primarily derived from solid waste service fees.
Transit Fund accounts for the operation and maintenance of the City's mass transportation service. Primary revenue sources are rider fares, federal grants, and state operating grants.
Airports Fund accounts for the City's two airport operations. Revenues are primarily derived from fees and rents.
Fresno Convention Center Fund accounts for the operation and maintenance of the City's convention center. Revenues are primarily derived from fees charged for using the facilities, supplemented by General Fund support.
Stadium Fund accounts for the construction, operation and maintenance of the City’s baseball stadium. Revenues are derived from the leasing of the facilities, supplemented by General Fund support.
3. Nonmajor Governmental Funds
Nonmajor Special Revenue Funds are used to account for the proceeds of revenue sources that are restricted or committed to expenditure for specified purposes other than debt service and capital projects. Funds listed under Special Revenue Funds include High Speed Rail Fund, Fresno Revitalization Corporation Fund, Special Gas Tax Fund, Measure C Fund, Community Services Fund, Urban Growth Management (UGM) Impact Fees Fund, Low and Moderate Income Housing Fund, and Special Assessments Fund.
Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays.
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Numbers for City debt and Financing Authorities/Corporations debt are presented in separate columns on the financial statements.
4. Nonmajor Proprietary Funds
Nonmajor Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 53 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES charges. Funds listed under Nonmajor Enterprise Funds include Community Sanitation Fund and Parks and Recreation Fund.
Internal Service Funds account for the financing of goods or services provided by one City department to another City department on a cost reimbursement basis. The General Services Fund accounts for the activities of the equipment maintenance services, centralized telecommunications, information services, and central printing. The Risk Management Fund accounts for the City’s self-insurance, including provision for losses on property, liability, workers’ compensation, and unemployment compensation. The Billing and Collection Fund accounts for the billing, collecting, and servicing activities for the Water System, Sewer System, Solid Waste Management, and Community Sanitation Funds.
The Employees’ Healthcare Plan Fund and the Retirees’ Healthcare Plan Fund account for the assets held on behalf of the City of Fresno Employees’ Healthcare Plan for claim payments on behalf of qualified employees and retirees. While there is only one plan, there is separate accounting for active employees and retirees. There are no standalone financial reports issued for either Healthcare Plan Fund.
5. Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the Government-Wide Financial Statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for other Proprietary Funds.
Pension Trust Funds account for the assets held on behalf of the City of Fresno Fire and Police Retirement System and the City of Fresno Employees Retirement System for pension benefit payments to qualified employees and retirees. Pension Trust Funds are accounted for in essentially the same manner as other Proprietary Funds. • City of Fresno Fire and Police Retirement System (Fire and Police): Fire and Police was established on July 1, 1955, to provide benefits to the public safety employees and retirees of the City. Fire and Police is maintained and governed by Articles 3 and 4 of Chapter 3 of the Fresno Municipal Code. Fire and Police responsibilities include: administration of the trust fund; delivery of retirement, death and disability benefits to eligible members; administration of programs; and general assistance in retirement and related benefits. The governing board is made up of two members appointed by the Mayor, an elected police member, an elected fire member and a board-appointed member. The activity for Fire and Police is reflected within Fiduciary Funds. Separate financial statements are prepared for the Fire and Police Retirement System and may be obtained from the Retirement Office at 2828 Fresno Street, Fresno, CA 93721-3604 or at https://www.cfrs-ca.org/fire-and-police- retirement-system/financial/.
• City of Fresno Employees Retirement System (Employees): Employees was established on June 1, 1939, to provide benefits to the general employees and retirees of the City.
Employees is governed by Article 5 of Chapter 3 of the Fresno Municipal Code. Employees CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 54 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES responsibilities include: administration of the trust fund; delivery of retirement, disability, and death benefits to eligible members; administration of programs; and general assistance in retirement and related benefits. The governing board is made up of two Mayor- appointed members, two elected members and one board-appointed member. The activity for Employees is reflected within Fiduciary Funds. Separate financial statements are prepared for the Employees Retirement System and may be obtained from the Retirement Office at 2828 Fresno Street, Fresno, CA 93721-3604, or at https://www.cfrs-ca.org/ employee-retirement-system/ers-financial/.
Private-Purpose Trust Funds account for the custodial responsibilities that are assigned to the Successor Agency to the Redevelopment Agency with the passage of the Redevelopment Dissolution Act.
Custodial Funds account for assets held by the City in a custodial capacity on behalf of individuals or other governmental units.
The City Departmental and Special Purpose Fund accounts for City-related trust activity, such as fees collected for other entities. The Special Assessments District Fund accounts for the receipts and disbursements for the debt service activity of bonded assessment districts within the City.
Custodial Funds, by their nature (assets equal liabilities), do not involve the measurement of results of operations.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
6. Component Units
In addition to the primary governmental unit, the City also has several component units whose functions are described below:
a. Blended Component Units
Although the following component units are legally separate from the City, the component units have been "blended" into the City's basic financial statements for financial reporting purposes because the governing board is substantially the same as the City Council, there is a financial benefit/burden relationship between the component unit and the City, or City management has the operational responsibility for the component unit. In addition, the component unit provides services exclusively to the primary government or the component unit’s total debt outstanding is expected to be repaid with resources of the primary government.
All potential component units were evaluated, resulting in the inclusion of the following entities in the basic financial statements.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 55 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fresno Joint Powers Financing Authority (Authority): The Authority, an independent public entity created in 1988, acquires telecommunications equipment, office furniture, and streetlights; constructs facilities; and installs street improvements through the issuance of limited obligation bonds, certificates of participation and revenue bonds. The Authority currently is leasing these assets to the City. The Authority’s three member governing board, consisting of the Mayor and two Council Members, is responsible for the Authority’s fiscal and administrative decisions. The financial activity for the Authority is included in the Financing Authorities and Corporations Debt Service Fund. All lease obligations between the Authority and the City have been eliminated in the financial statements. The Authority does not issue separate financial statements.
City of Fresno Employees Healthcare Plan: This component unit provides healthcare to City employees not represented by the Stationary Engineers Local and retired employees who elect to be covered or are covered by the Fresno City Employees Health and Welfare Trusts (Trusts). The Trusts are self-insured trusts administered by an outside third party administrator. The activity for the Trusts is reflected within Internal Service Funds.
Fresno Revitalization Corporation: The Fresno Revitalization Corporation (FRC) is a non-profit public benefit corporation created in 1995 for the purpose of developing a revitalization policy and assisting with the downtown Fresno area development, redevelopment and renewal. The organization received a substantial portion of its support from the former Redevelopment Agency (RDA) and the general public. The seven Council Members of the City and the Mayor became members of the FRC’s Governing Board on January 26, 2012.
FRC Canyon Crest, LLC: FRC Canyon Crest, LLC is a special purpose limited liability company owned by the FRC. The purpose of FRC Canyon Crest, LLC was to acquire, operate, maintain, and rehabilitate a 118-unit low income multi-family complex. The complex was owned by a lender in Chicago as a result of a foreclosure of the previous owner. On March 4, 2010, the City Council approved the award of $2.7 million in Neighborhood Stabilization Program (NSP) set aside funds to the FRC to acquire the property. FRC Canyon Crest, LLC acquired the property, while the RDA guaranteed the loan from the seller. The RDA also provided administrative, financial, and technical support to FRC Canyon Crest, LLC in the acquisition and operation of the property through a contractual services agreement. The Agency Loan Guarantee and Operating Agreement also contained a Declaration of Restrictions creating the affordability covenants and long-term maintenance and operating restrictions, which were recorded against and run with the property.
The RDA and FRC Canyon Crest, LLC marketed the property for sale upon rehabilitation and stabilization to a qualified affordable housing developer for ongoing management and property improvements. In September 2011, the FRC and FRC Canyon Crest, LLC entered into an Assignment/Assumption Agreement with a developer as required by the U.S. Department of Housing and Urban Development (HUD). Final purchase of the property by the developer occurred on April 2012. However, the FRC and FRC Canyon Crest, LLC still hold a $500,000 residual receipts note on the property.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 56 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As the City is the sole member of FRC Canyon Crest, LLC, the seven City Council members and the Mayor are Board members of FRC Canyon Crest, LLC, the activities of FRC Canyon Crest, LLC are blended into the FRC (and, by extension, the City) because: (1) its governing board is substantially the same as the City Council; (2) it provides services exclusively or almost exclusively for the benefit of the City even though it does not provide services directly to the City; and (3) the City is financially accountable for FRC Canyon Crest, LLC.
Fresno Enhanced Infrastructure Financing District (Fresno EIFD): On September 17, 2020, the Fresno City Council approved the creation of the Fresno EIFD. The Fresno EIFD is intended to serve as a catalyst for private sector investment and critical infrastructure in the City’s Downtown Planning Area and the southern portion of the Blackstone Avenue Bus Rapid Transit (BRT) Corridor as characterized in the City General Plan. The Fresno EIFD encompasses approximately 4,237 acres of land, representing approximately 5.8% of the City’s total (approximately) 73,400 acres. The Fresno EIFD obtains its funding through property tax increment that is generated above the base fiscal year (2021) amount of property tax. The Fresno EIFD intends to utilize the tax increment revenue stream to issue bonds that will fund approximately $100 million (present value dollars) in multi-modal transportation, mobility, and related improvements, including but not limited to the following:
• Safety and accessibility improvements for car, bicycle, and pedestrian travel modes. • Roadway and bus infrastructure investments.
• Streetscape, urban greening, and lighting enhancements. • Improved gateway and wayfinding signage.
The Fresno EIFD is governed by a five member board, which is made up of three City councilmembers and two appointed members of the public that live within the Fresno EIFD.
While there are no financial results from the Fresno EIFD in the Fiscal Year 2021 Annual Comprehensive Financial Report (ACFR), there will be results in future fiscal years as the district receives tax increment, issues bonds, and completes projects. The Fresno EIFD will be reported as a Debt Service Fund.
b. Fiduciary Component Unit
Successor Agency to the Redevelopment Agency of the City of Fresno (Successor Agency): The Successor Agency was created to serve as custodian for the assets and to wind down the affairs of the former RDA. The Governing Board of the Successor Agency consists of the City Council. Over the Successor Agency's Governing Board is the Countywide Oversight Board, which replaced the fifteen oversight boards previously created by successor agencies in Fresno County. Fresno County Oversight Board is comprised of six-member representatives:
a representative from the County Board of Supervisors, a representative from the cities within Fresno County, a representative from the independent special district within Fresno County, a representative from the County Office of Education, a representative of the California Community College districts in Fresno County, and a resident of Fresno County.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 57 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In general, the Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, the Successor Agency will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former RDA until all of those enforceable obligations have been paid in full and all assets have been liquidated.
The City became the Housing Successor Agency and has the sole legal authority to administer the former RDA’s housing assets. The City may move forward with completing projects under contract at the time of the dissolution and liquidate surplus real estate for the purpose of distributing proceeds to taxing entities, pursuant to approval of repayment of the RDA's obligations to the City.
The Successor Agency is a separate legal entity under Assembly Bill (AB) 1484. The Successor Agency is reported as a Private-Purpose Trust Fund in the City’s financial statements. This means that the Successor Agency’s assets are considered to be held in a trustee or agency capacity for others and cannot be used to support the City’s government’s own programs. The housing activity of the former RDA is presented within the Low and Moderate Income Housing Fund, a special revenue fund.
Separate financial statements are prepared for the Successor Agency and can be obtained from the Successor Agency Office at 2344 Tulare Street, Suite 200, Fresno, CA 93721. There is no separate financial report prepared for the Housing Successor Agency.
D. Budgetary Data
The budget of the City is a detailed operating plan which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) programs, projects, services, and activities to be provided during the fiscal year, (2) the estimated resources (inflow) and amounts available for appropriation, and (3) the estimated charges to appropriations. The budget represents a process through which policy decisions are made, implemented, and controlled. The City Charter prohibits expending funds for which there is no legal appropriation.
1. Fund Structure
The budget document is organized to reflect the fund structure of the City’s finances. Fund revenues and expenditures are rolled up to the various object levels by division and department for presentation of information to the public. Budget adoption and subsequent administration is carried out on a fund basis.
2. Basis of Accounting
The City adopts annual budgets for most governmental and business-type funds (except Financing Authorities/Corporations and City Debt Service) on the cash basis of accounting plus CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 58 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES encumbrances. Major General Fund revenues, such as sales tax and property tax, are budgeted on the modified accrual basis of accounting. Supplemental appropriations during the year must be approved by the City Council. Budgeted amounts are reported as amended.
Encumbrances are commitments related to executed contracts for goods or services.
Encumbrance accounting is utilized for budgetary control and accountability and to facilitate cash planning and control. Encumbrances outstanding at year-end are reported as part of restricted, committed, or assigned fund balance. As of June 30, 2021 , encumbrances totaled $19.2 million in the General Fund, $30.0 million in the Grants Special Revenue Fund, and $52.6 million in the Nonmajor Governmental Funds.
3. Revenue Estimation
The methodology for calculating revenue estimates varies depending on the source of revenue. Considerable weight generally has been given to historical trends. This emphasis on historical trends is used because of the composition of the Fresno economy, which differs from California in general.
The General Fund is the City’s most versatile funding source, since it has the fewest restrictions. Its revenue comes from property and sales taxes, business tax fees, room tax (Transient Occupancy Tax), charges for services, development fees, and revenues from other governmental agencies. Property tax is the largest revenue source in the General Fund. The main source for projecting this revenue is assessed value information received from the County of Fresno.
Revenue estimates for Enterprise and Internal Service Funds are also rooted in historical trends. As those funds are generally self-supporting (meaning, they do not generally receive tax dollars to cover operational costs), revenue estimates also take into account any adjustments to fees assessed by the Enterprise or the Internal Service Funds. Additionally, any anticipated changes in service levels are also reflected in the revenue estimates.
4. Budget Administration
The budget establishes appropriation and expenditure levels. Expenditures may be below budgeted amounts at year-end due to unanticipated or mandated savings. The existence of a particular appropriation in the budget does not automatically mean funds are expended.
Because of the time span between preparing the budget and the subsequent adoption by the governing body, actual expenditures are likely to be different than the budgeted amounts.
Each expenditure is reviewed prior to any disbursement. These expenditure review procedures assure compliance with the City’s requirements and provide some degree of flexibility for modifying programs to meet changing needs and priorities.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 59 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. New Accounting Pronouncements - Implemented
1. GASB Statement No. 84 - Fiduciary Activities
The objective of GASB Statement No. 84 is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported by establishing criteria for identifying the fiduciary activities of all state and local governments. This Statement is effective for reporting periods beginning after December 15, 2019 (was originally December 15, 2018), which for the City is the fiscal year ending June 30, 2021.
The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Items previously reported as part of the agency fund classification of the Fiduciary Funds statements were reviewed to evaluate if they met the new custodial funds criteria. The City identified 14 custodial funds as non-fiduciary and re-categorized the activities in the appropriate governmental funds.
2. GASB Statement No. 89 - Accounting for Interest Cost Incurred Before the End of a Construction Period
Under this GASB Statement, the City will no longer book capitalized interest with respect to construction cost and said interest will no longer be capitalized as part of the assets implementation costs. This statement is effective for reporting periods beginning after December 15, 2020 (was originally December 15, 2019), which for the City is June 30, 2022. The City early implemented GASB Statement No. 89 in fiscal year 2019.
3. GASB Statement No. 90 - Majority Equity Interests - an Amendment to GASB Statements No. 14 and No. 61
The primary objectives of GASB Statement No. 90 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. A majority equity interest that meets the definition for an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment or a permanent fund. Those government funds should measure the majority equity interest at fair value. This statement is effective for reporting periods beginning after December 15, 2019 (was originally December 15, 2018), which for the City is June 30, 2021. The City implemented GASB Statement No. 90 during fiscal year 2021, which had no effect on our financial statements.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 60 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
4. GASB Statement No. 98 - The Annual Comprehensive Financial Report This Statement establishes the term annual comprehensive financial report and its acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. This statement is effective for reporting periods ending after December 15, 2021, which for the City is June 30, 2022.
The City early implemented this statement during the fiscal year 2021 reporting period by changing all Comprehensive Annual Financial Report references, including its acronym, to Annual Comprehensive Financial Report, or ACFR.
F. New Accounting Pronouncements - Issued But Not Yet Adopted The City is assessing what effect, if any, the implementation of the following standards will have on the City’s financial statements.
1. GASB Statement No. 87 - Leases
The objective of GASB Statement No. 87 is to improve the accounting and financial reporting of leases by governments. GASB Statement No. 87 increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. This Statement is effective for reporting periods beginning after June 15, 2021 (was originally December 15, 2019), which for the City is the fiscal year ending June 30, 2022.
2. GASB Statement No. 91 - Conduit Debt Obligations
The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement clarifies the existing definition of a conduit debt obligation; establishes that conduit debt obligation is not a liability of the issuer; establishes that standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improves required note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 (was originally December 15, 2020), which for the City is June 30, 2023.
3. GASB Statement No. 92 - Omnibus 2020
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issued that have been identified during implementation and application of certain GASB Statements. This Statement addresses the effective date of GASB Statement No. 87, CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 61 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES reporting on intra-identity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit Other Post-Employment Benefit (OPEB) plan, the applicability of GASB Statements No. 73 and No. 74, as well as the applicability of certain requirements under GASB Statement No. 84. Regarding the requirements related to GASB Statement No. 87, implementation is to begin at issuance.
Regarding all other requirements, implementation becomes effective for reporting periods beginning after June 15, 2021 (was originally June 15, 2020), which for the City is June 30, 2022.
4. GASB Statement No. 93 - Replacement of Interbank Offered Rates The objective of this Statement is to address those and other reporting implications that result from the replacement of an interbank offered rate (IBOR). This Statement provides exemptions for certain hedging derivative instruments when IBOR is replaced, clarifies the hedge accounting termination provisions when a hedged item is amended to replace the reference rate, clarifies that the uncertainty related to IBORs do not affect the assessment of whether the occurrence of a hedged expected transaction is probable, removes London Interbank Offered Rate (LIBOR) as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap, and clarifies the definition of interest rate as it is used by GASB Statement No. 53. The Statement requirement providing for the removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021 (was originally December 31, 2020), which for the City is June 30, 2022. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2021 (was originally June 15, 2020), which for the City was June 30, 2022.
5. GASB Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related to the public-private and public-public partnership arrangements (PPPs), as well as clarifying which PPPs meet the definition of a Service Concession Arrangement (SCA). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements. This Statement requires that PPPs that meet the definition of a lease apply the guidance in GASB Statement No. 87, as amended, if existing assets of the transferor are not required to be improved by the operator as part of the PPP arrangement, are the only underlying PPP assets, and the PPP does not meet the definition of an SCA. This Statement also provides specific guidance in financial statements prepared using the economic resources measurement focus for a government that is an operator in a PPP that either meets the definition of an SCA or is not within the scope of GASB Statement No. 87.
The requirements of this Statement are effective for reporting periods beginning after June 15, 2022, which for the City is June 30, 2023.
6. GASB Statement No. 96 - Subscription-Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 62 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES based information technology arrangements (SBITAs) for government end users. The Statement defines SBITAs and establishes that a SBITA results in a right-to-use subscription asset - intangible asset - and corresponding liability. It also provides the capitalization criteria for outlays other than subscription payments in addition to requiring a note disclosure regarding SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022, which for the City is June 30, 2023.
7. GASB Statement No. 97 - Certain Component Unit Criteria, and Accounting and Financial Reporting for IRS Code Section 457 Deferred Compensation Plans - an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 The primary objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in 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 post-employment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB 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 that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this statement are effective for fiscal years beginning after June 15, 2021 which for the City is June 30, 2022.
G. Deposits and Investments
1. Investment in the Treasurer’s Pool - The City Controller/Treasurer invests on behalf of most funds of the City in accordance with the City’s investment policy and the California Government Code Section 53601. The City Treasurer, who reports investments and earnings on a monthly basis to the City Council, manages the Treasurer’s Investment Pool. The Treasurer’s Investment Pool consists of two components: 1) pooled deposits and investments and 2) dedicated investment funds. The dedicated investment funds represent restricted funds related to bond issuances of Enterprise Funds. In addition to the Treasurer’s Investment Pool, the City has other funds that are held by trustees. These funds are related to the issuance of Non-Enterprise Fund bonds and certain loan programs of the City.
2. Investment Valuation - The City categorizes its investments at fair value measurement within the fair value hierarchy established by generally accepted accounting principles as codified in GASB Statement No. 72, Fair Value Measurement and Application.
All City investments are authorized by statute. The City is invested in the following authorized investment instrumentalities: obligations of the U.S. Treasury, agencies, state and local agencies, and supranationals, negotiable and non-negotiable certificates of deposit, medium term corporate notes, money market mutual funds, and the State Treasurer's investment pool. All are stated at fair value except for the non-negotiable certificates of deposit and money mutual fund which are stated at amortized cost.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 63 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. Investment Income - Cash balances of each of the City’s funds, except for certain Trust and Custodial Funds and other restricted accounts, are pooled and invested by the City. Interest income from pooled investments is allocated to the individual funds based on the fund participant’s average daily cash balance at month end in relation to total pooled investments.
The City’s policy is to charge interest to those funds that have a negative average daily cash balance at month end. Fiscal year-end deficit cash balances are reclassified as Due to Other Funds and funded by operating funds with positive cash balances.
H. Loans Receivable
For the purposes of the Fund Financial Statements, Special Revenue and Capital Projects Funds expenditures relating to long-term loans arising from loan subsidy programs are recorded as loans receivable net of an estimated allowance for potentially uncollectible loans. In some instances, amounts due from external participants are recorded with an offset to an allowance account. The balance of long-term loans receivable includes loans that may be forgiven if certain terms and conditions of the loans are met.
I. Inventories
Inventories recorded in the Proprietary Funds primarily consist of construction materials and maintenance supplies. Generally, Proprietary Funds value inventory at cost or average cost.
Inventory is expensed as it is consumed (the consumption method of inventory accounting). The City uses the purchases method of accounting for inventories in governmental fund types, whereby inventory items are considered expenditures when purchased and are not reported in the balance sheet.
J. Former Redevelopment Agency Property Held for Resale Property of the former RDA, some of which was allocated to Low and Moderate Income Housing (LMIH) ($4.8 million) and some to the Successor Agency ( $0.3 million), is being held for resale per the law dissolving the RDA. The property is recorded at the current determination of the lower of estimated cost or market as documented in its approved Long-Range Property Management Plan (LRPMP). The LRPMP addresses the anticipated disposition and use of the real properties of the former RDA. At June 30, 2021, the adjusted value of the property was $5.0 million.
Property held for sale may, during the period it is held by the City, generate rental income. This rental income is recognized as it becomes due and is considered collectible. The property held by the LMIH appears on the Nonmajor Governmental Fund Financial Statements and Government-Wide Financial Statements as Property Held for Resale. Property held for resale by the Successor Agency is included in the fiduciary funds.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 64 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES K. Restricted Assets
Restricted cash is classified as restricted assets on the Statement of Net Position because it is maintained in separate bank accounts or tracked separately in the City Treasury group of accounts.
Use of the proceeds is limited by applicable bond covenants and resolutions. Restricted assets account for the principal and interest amounts accumulated to pay debt service, unspent bond proceeds and amounts restricted for future capital projects. Restricted grants and interest receivable represent cash and receivables contributed for capital projects and the associated interest.
L. Capital Assets
Capital assets, which include land, buildings and improvements, machinery and equipment, infrastructure, and intangible assets, are reported in the applicable Governmental Activities or Business-Type Activities columns in the Government-Wide Financial Statements and in the Private- Purpose Trust Fund (former RDA). All land not included in property held for resale is defined as Capital Assets, regardless of the acquisition cost of the land. All other acquisitions or constructions (excluding Infrastructure) with an initial cost of $15,000 or more (excluding bundled purchases) and having an estimated useful life in excess of two years are defined as Capital Assets. Computer purchases acquired through a capital lease are capitalized in bulk and not on an individual basis.
Infrastructure with an initial cost of more than $50,000 is capitalized. Improvements that extend an asset’s life or efficiency by over 25% are also capitalized. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed unless they fall below the initial cost threshold.
Asset Category Capitalization
Threshold
Land All Land
Buildings, Improvements, and Machinery & Equipment More than $15,000 Infrastructure More than $50,000
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value at the date of donation. Capital outlay is recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City’s capitalization threshold is met.
In prior years, interest cost incurred during the construction phase of capital assets of Business-Type Activities was included as part of the capitalized value of the assets constructed. Amortization of assets acquired under capital lease is included in depreciation and amortization.
Buildings and improvements, infrastructure, and machinery and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated used lives:
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 65 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Asset Category Useful Life
(Years)
Buildings and Improvements 20 to 40
Infrastructure 15 to 55
Machinery and Equipment 3 to 12
Works of art and historical treasures held for public exhibition, education, or research in furtherance of public service, rather than financial gain, are not capitalized. These items are protected, kept unencumbered, cared for and preserved by the City.
Airports Department capitalizes noise mitigation costs consistent with GASB Statement No. 51 - Intangible Assets. Water Rights, in the Water Fund, are also capitalized as Intangible Assets with indefinite useful lives and no amortization. The Airports' Noise Mitigation program consists of improvements made to properties falling within Federal Aviation Administration (FAA) designated high noise impact areas. Although the properties do not belong to Airports, noise insulation measures are installed to reduce the impact of sound decibels inside properties located within the flight path of the airport. In exchange, property owners grant aviation easements to the Airports Department with the easement having an indefinite life. Funding for the program is provided through federal grants.
As of fiscal year end 2021, $17.9 million has been capitalized as an intangible asset. Included in this amount are noise mitigation assets of $2.3 million and Water Rights in the amount of $15.7 million.
Capital Leases
Property, plant and equipment include the following property held under capital lease obligation at June 30, 2021 (in thousands):
Governmental
Activities
Machinery and Equipment $ 38,238
Less: Accumulated Depreciation (22,631)
Net Machinery and Equipment $ 15,607
M. Bond Prepaid Insurance, Bond Premiums and Discounts and Accreted Interest Payable In the Government-Wide Financial Statements, as well as in the Proprietary Fund type and the Fiduciary Fund type in the Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the applicable Governmental Activities, Business-Type Activities, or Proprietary Fund and Fiduciary Fund Statement of Net Position. Bond prepaid insurance is reported as other assets and amortized over the term of the related debt. Bond issuance premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond issuance premium or discount. Interest accrued on CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 66 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES capital appreciation bonds is reported as accreted interest payable in the Proprietary Fund and as Long-Term Liabilities, Due In More Than One Year in the Government-Wide Statements.
N. Deferred Outflows of Resources
1. Refunding of Debt
The City records deferred outflows of resources in its Proprietary, Fiduciary, and Government- Wide Financial Statements for consumption of net position that is applicable to a future reporting period. These financial statement elements are distinct from assets.
Unamortized losses occurring from advance refunding of debt are reported as deferred outflows of resources. As of June 30, 2021, the ending balance of refunding charges yet to be amortized into expense consists of the following (in thousands):
Bonds Charge on Refunding
Governmental Activities:
Lease Revenue Bonds 2017 A&B, NNLB $ 40
Lease Revenue Bonds 2017, Parks Impact 796
Lease Revenue Bonds 2017, Various Capital Projects 17
Lease Revenue Bonds 2017, City Hall Chiller 54
Lease Revenue Bonds 2017, Public Safety 2,643
Total Governmental Activities 3,550
Business-Type Activities:
Airport Revenue Refunding Bonds 2013 12
Lease Revenue Bonds 2017, Convention Center (6)
Convention Center Improvements 2008 E&F 21
Lease Revenue Bonds 2017, Stadium 24
Lease Revenue Bonds 2017, Exhibit Hall 71
Lease Revenue Bonds 2017, Golf Course 56
Total Business-Type Activities 178
Fiduciary Funds:
Successor Agency to the Fresno Redevelopment Agency:
Tax Allocation Bonds Series 2003, Mariposa Project Area 5 Total Charge on Refunding $ 3,733
2. Pension and OPEB
In the Government-Wide Financial Statements and the Proprietary Fund type in the Fund Financial Statements, deferred outflows of resources are recorded for the current year employer pension contributions to the retirement systems, which represent contributions made after the measurement period in accordance with GASB Statement No. 71 and for the OPEB plan, the implicit subsidy (the employer contribution) made after the measurement period. Refer to Note 1 (W) on page 73 for additional information.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 67 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES O. Unearned Revenues
Unearned revenues arise when resources are received by the City before it has a legal claim to them (i.e., upfront grants or when the City bills certain fixed rate services in advance). Amounts billed, but not yet earned, are amortized over the service period.
P. Deferred Inflows of Resources
The City records deferred inflows of resources in its Governmental, Proprietary, and Government- Wide Financial Statements for acquisition of net position that is applicable to a future reporting period. In the Government-Wide Financial Statements and the Proprietary Fund type in the Fund Financial Statements, deferred inflows of resources are recorded for unamortized pension revenue.
In the governmental fund statements, deferred inflows of resources consist of revenues not collected within the availability period after fiscal year-end. The deferred inflows of resources balance as of June 30, 2021 consists of the following unavailable resources (in thousands):
Deferred Inflows of Resources
General
Fund
Grants Special
Revenue Fund
Other
Governmental
Funds
Total
Governmental
Funds
Property Taxes $ 8,140 $ — $ — $ 8,140
Franchise Taxes 2,926 — — 2,926
Business Tax 4,788 — — 4,788
Measure C and Other Tax — — 544 544
Code Enforcement Revenue 5,993 — — 5,993
Fire Revenue 1,744 — — 1,744
Grant Revenue 6 13,059 1,004 14,069
Parking Citations, Fines and Other Revenue 589 — — 589 Total $ 24,186 $ 13,059 $ 1,548 $ 38,793
Q. Interfund Transfers
Interfund transfers are generally recorded as transfers in (out), except for certain types of transactions that are described below:
1. Charges for services are recorded as both revenues of the performing fund and expenditures of the requesting fund. Unbilled costs are recognized as an asset of the performing fund at the end of the fiscal year.
2. Reimbursements for expenditures initially made by one fund which are properly applicable to another fund are recorded both as expenditures in the reimbursing fund and as a reduction of expenditures in the fund that is reimbursed.
R. Fund Balance (Deficit)
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 68 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In the fund financial statements, fund balances of the governmental funds are reported in a hierarchy of classifications which are based on the extent to which the City is bound to honor constraints on the specific purposes for which the amounts in the funds can be spent. Governmental fund balance classifications consist of the following:
1. Nonspendable - Includes amounts that are either not in spendable form or are legally/ contractually required to be maintained intact. These items include those not expected to be converted to cash, such as inventories, prepaid items, and certain long-term receivables.
2. Restricted - Includes amounts which have constraints placed on the use of the resources.
The constraints are either externally imposed by creditors, grantors, contributors, the legally enforceable laws or regulations of other governments, or by the legally enforceable laws or enabling legislation of the government itself.
3. Committed - Includes amounts that can only be used for specific purposes. Various reserves, including the City’s Emergency Reserve, are included as a committed reserve.
Resolution No. 2011-64 established the Reserve Management Act which set forth policy with stringent limitations on the reserve funds. This Act increased the minimum reserve balance to 10% of the adopted budget for the next year’s General Fund appropriations.
A November 16, 2012 ballot measure amended Section 1212 of the City Charter to require that the Council establish a policy for managing the City Reserves. The measure also defined several “qualifying events” under which the City’s Emergency Reserve could be used.
Qualifying events were deemed to be 1) Natural catastrophe; 2) An immediate threat to health and public safety; or 3) A significant decline in General Fund Revenues, which in the opinion of the City Manager, impairs his/her ability to administer the Council adopted budget.
All qualifying events must be declared by the Mayor and ratified by a super majority Council vote.
The Reserve Management Act (the Act) was further amended through Resolution 2015-77, which was adopted on May 15, 2015. The amendment to the Act permitted the use of the Emergency Reserve for year-end cash balancing purposes, with the approval of the Council.
On June 30, 2021 , the Reserve balance identified as Committed Fund Balance was at $40.7 million, including $35.5 million for the General Fund Emergency Reserve.
On December 7, 2017, with the adoption of Resolution No. 2017-334, the Act was again amended. The Resolution stated that any real or personal asset sale of City property with proceeds greater than $15,000, which would otherwise be deposited into the General Fund, shall instead be deposited into an Asset Sale/Special Windfall Reserve Fund. Proceeds deposited into this new fund are amortized over a five-to-ten year period and used to provide a revenue stream for General Fund items deemed necessary to deliver core City services for the protection and benefit of the citizens of Fresno. Monies from the Asset Sale/Special CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 69 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Windfall Reserve Fund are currently being used to fund salaries of additional police dispatchers. The Committed Fund Balance as of June 30, 2021 includes $1.3 million within this fund.
In addition to the City's Emergency Reserve, the Committed Fund Balance as of June 30, 2021 also consists of $2.1 million designated exclusively for use in a year when a 27 th pay period occurs. Monies are set aside each year to fund the extra pay period that is a product of paying employees bi-weekly. The next fiscal year containing a 27 th pay period is fiscal year 2028.
The Committed Fund Balance as of June 30, 2021 also includes $1.7 million for the Housing Reserve. Funds in this reserve are to be used exclusively for construction of low-income housing, or subsidizing private sector development of low-income housing.
4. Assigned - Includes amounts that are not classified as nonspendable, restricted, or committed, but which are intended by the City to be used for specific purposes. Intent is expressed by legislation or action of the City Council, the Mayor, or the City Manager which legislation has delegated the authority to assign amounts for specific purposes.
5. Unassigned - The residual classification for fund balance, which includes all amounts not reported as nonspendable, restricted, committed, or assigned. The General Fund may report either a positive or negative unassigned fund balance. Unassigned amounts are available for any purpose. Other governmental funds may report only negative unassigned fund balances if expenditures incurred for specific purposes exceeded amounts restricted, committed or assigned for those purposes.
When multiple classifications of resources are available for use, it is the City’s policy to use resources in the order of restricted, committed, assigned, and unassigned.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 70 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Balances of the governmental funds at June 30, 2021 consisted of the following (in thousands):
Grants Other Total
General Special Revenue Governmental Governmental
Fund Fund Funds Funds
Fund Balances:
Nonspendable:
Advances Receivable from Other Funds $ — $ — $ — $ —
Restricted:
Debt Service — — 19,262 19,262
CDBG and Home Loans — 25,285 — 25,285
Revitalization — — 247 247
Street Works — — 15,764 15,764
Transportation — — 16,345 16,345
Pedestrian and Bicycle Program — — 995 995
Prop 42 Traffic Congestion Relief — — 273 273
AD #131 UGM Reimbursement — — 1,781 1,781
Forfeitures — — 58 58
CASP Program Senate Bill 1186 — — 646 646
Grants — 867 — 867
CARES, Emergency Rental Assist, ARPA Grants — 79,931 — 79,931 Impact Fees — — 44,937 44,937
Special Assessment Projects — — 14,247 14,247
Low to Moderate Income Housing — — 34,686 34,686
Committed:
27th Pay Period Reserve 2,132 — — 2,132
Emergency Reserve General Fund 35,528 — — 35,528
Asset Sale Reserve Fund 1,316 — — 1,316
Housing Reserve 1,679 — — 1,679
Assigned:
Public Works Maintenance 1,046 — — 1,046
Median Island Maintenance — — 4 4
Parks Maintenance 1,555 — 734 2,289
Right of Ways Acquisition — — 1,243 1,243
Street Tree Fees — — 66 66
Public Protection — — 1,384 1,384
Public Works Projects — — 4,306 4,306
General Purpose 13,704 — — 13,704
Enterprise Zone — — 4 4
City Hall Improvements — — 174 174
Various Capital Projects — — 2,224 2,224
Miscellaneous Paving — — 2,731 2,731
PD Capital Projects — — 151 151
Parking Garage 7 — — 107 107
Woodward & Japanese Garden Projects — — 75 75
Police Administration & Patrol 543 — — 543
Planning & Community Revitalization 2,401 — — 2,401 Local Agency Protects — — 6 6
Unassigned 43,039 (53,454) (3,296) (13,711)
Total Fund Balances $ 102,943 $ 52,629 $ 158,788 $ 314,360 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 71 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES S. Net Position/(Deficit)
Net position/(deficit) represents the difference between assets/deferred outflows of resources and liabilities/deferred inflows of resources in the Government-Wide and Proprietary Fund Statements of Net Position. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with the reported restricted assets. Unrestricted net position represents net position elements which are not restricted.
T. Cash Flows
The Statements of Cash Flows are presented for Proprietary Fund types. Cash and cash equivalents include all unrestricted and restricted highly liquid investments with original purchase maturities of three months or less. Pooled cash and investments in the City’s Treasury represent monies in a cash management pool and such accounts are similar in nature to demand deposits.
U. Regulatory Assets and Liabilities
At June 30, 2021, the Statement of Net Position Business-Type Activities reflected approximately $0.8 million in regulatory assets related to the Central Valley Project (CVP) Water Settlement. These assets will continue to have an impact on water rates which are to be charged to customers over approximately the next 20 years. The settlement for past deficiencies was negotiated between the City and the United States Bureau of Reclamation (USBR). Under GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance , regulatory assets represent future revenue associated with certain costs (CVP Settlement) that will be recovered from customers through the ratemaking process.
V. Pensions
For purposes of measuring the net pension asset, deferred outflows/inflows of resources related to pensions and pension revenue/expense, information about the fiduciary net position of the City’s two pension plans, City of Fresno Employees Retirement System and the City of Fresno Fire and Police Retirement System (Plans), and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plans, which is the accrual basis of accounting. Employer and employee contributions are recognized as revenue when due.
Contributions are recorded in the period the related salaries are earned and become measurable.
Investment income is recognized when it is earned. The net appreciation in fair value of investments held by the Plans is recorded as an increase to investment income based on the valuation of investments at fiscal year-end, which includes both realized and unrealized gains and losses on investments. Retirement benefits and refunds are recognized when due and payable under the terms of the Plans.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 72 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES W. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB revenue/expense, information about the fiduciary net position of the City’s OPEB Plan, and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis, which is the accrual basis of accounting. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. While participant retirees pay 100% of their premium costs, they are allowed to purchase insurance at blended premium rates. Thus, the City's contribution is deemed to be equal to the implicit subsidy, which is that portion of retiree claims costs over premiums contributed by retirees.
X. Estimates
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 73 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 2. Cash and Investments
A. City Cash and Investments
1. Sponsored Investment Pool
As part of the City’s total cash and investment portfolio, the Treasury Officer and staff, under the supervision of the Controller, manage an investment pool that includes only internal investors and is available for use by all funds. The pool is not registered with the Securities and Exchange Commission as an investment company. Investment activity is reported monthly to the City Council by posting reports to the City’s web page and annually through an investment policy submitted to the Council for review and approval. The investments are reported at fair value, which is determined monthly. Participants’ shares are determined by the daily cash balance deposited in the pool (the value of its pool shares). Investment income earned by the pooled investments is allocated to the various funds on a monthly basis, based on each fund's daily cash balance. Interest payments are paid to the various funds also on a monthly basis. The value of the pool shares is based upon amortized cost in day-to-day operations, but is adjusted to the fair value at year-end. The value of the shares is supported by the value of the underlying investments. Each fund type's portion of this pool is displayed on the financial statements as “Cash and Investments.” In addition, certain funds related to debt issues have investments with trustees.
The following is a summary of cash, deposits, and investments at June 30, 2021 (in thousands):
(in thousands) Primary Government
Category
Governmental
Activities
Business-Type
Activities
Fiduciary
Funds Total
Cash and Investments $ 280,741 $ 253,000 $ 10,585 $ 544,326 Restricted Cash and Investments 163,160 204,614 1,041 368,815 Pension Trust Investments at Fair Value — — 3,781,516 3,781,516 Collateral Held for Securities Lent — — 176,002 176,002 Total $ 443,901 $ 457,614 $ 3,969,144 $ 4,870,659
2. Cash and Deposits
At year-end, the City's bank balance was $ 64.9 million inclusive of Successor Agency to the Fresno Redevelopment Agency Private-Purpose Trust Fund and pension trust funds. The recorded balance reflected in the June 30, 2021 financial statements was $67.6 million. The difference is due to deposits in transit and outstanding checks.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 74 NOTE 2 - CASH AND INVESTMENTS
3. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted (unadjusted) for identical assets or liabilities in active markets.
• Level 2: Inputs other than quoted prices included in Level 1 that are observable for an asset or liability, either directly or indirectly. Inputs to the valuation include prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active. • Level 3: Inputs are unobservable inputs for an asset or liability where there are little market activities. The inputs into the determination of fair value are based upon unobservable sources and may require estimation.
The City uses the market approach as a valuation technique in the application of GASB Statement No. 72. This method uses prices and other relevant information generated by market transactions involving identical or comparable assets or group of assets. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Securities listed on the fair value hierarchy are valued by the custodial bank using Data Feed purchased from Interactive Data Corporation (IDC). The Level 2 Data Feed provides end of day independent valuations utilizing rules based on logic and standard valuation techniques. It maximizes the use of relevant observable inputs including quoted prices for similar assets, benchmark yield curves, and market corroborated inputs.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 75 NOTE 2 - CASH AND INVESTMENTS The following is a summary of the fair value of the City’s investments using the hierarchy previously discussed (in thousands):
Pooled Investments by Fair Value Level June 30, 2021 Level 1 Level 2 Federal Farm Credit Bank Bonds $ 70,372 $ — $ 70,372
Federal Home Loan Bank Bonds 128,328 — 128,328
Federal Home Loan Mortgage Corporation Bonds 19,919 — 19,919 Federal National Mortgage Association Bonds 29,891 — 29,891 Farmer MAC 4,923 — 4,923
U.S. Treasury Securities 70,963 70,963 —
U.S. Sovereign Bonds 5,398 — 5,398
Medium Term Corporate Notes 224,125 — 224,125
Negotiable Certificates of Deposit 36,360 — 36,360
Total Pooled Investments by Fair Value 590,279 70,963 519,316 Pooled Investments Not Subject to the Fair Value Hierarchy State Local Agency Investment Fund 93,636
Time Deposits 4,400
Municipal Bonds 74,872
Supranationals 15,656
Money Market Funds 16,000
Total Pooled Investments Not Subject to the Fair Value Hierarchy 204,564 Total Pooled Investments 794,843
Investments Held Outside the Treasurer's Pool by Fair Value Level U.S. Treasury Securities 3,247 3,247
Investments Held Outside the Treasurer's Pool Not Subject to the Fair Value Hierarchy
Money Market Mutual Funds 47,249
Total Investments Held Outside the Treasurer's Pool Not Subject to the Fair Value Hierarchy 47,249
Total Investments Held Outside the Treasurer's Pool 50,496 Grand Total of Investments $ 845,339 $ 74,210 $ 519,316 Note: There are no level 3 investments.
According to GASB Statement No. 72, money market investments and participating interest- earning investment contracts that have a remaining maturity at the time of purchase of one year or less should be measured at amortized cost, and as such, are not shown in the fair value hierarchy. Additionally, the City's investment in LAIF is not presented, as the amount available for withdrawal is based on the amortized cost.
4. Cash, Deposits, and Investments
Cash includes amounts in demand and time deposits. Investments are reported in the accompanying financial statements at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 76 NOTE 2 - CASH AND INVESTMENTS Changes in fair value that occur during a fiscal year are recognized as income from property and investments. Income from property and investments includes interest earnings; changes in fair value; any gains or losses realized upon the liquidation, unrealized gains and losses, maturity, or sales of investments; property rentals and the sale of City owned property.
5. Investments Authorized by the California Government Code and the City’s Investment Policy The City maintains a formal investment policy, which is adopted annually by the City Council.
All investments held in the Treasurer's Pool are consistent with the City's investment policy objectives of preservation of principal, adequacy of liquidity, and achievement of an average market rate of return.
The policy addresses the soundness of financial institutions in which the City will deposit funds, types of investment instruments as permitted by the California Government Code, and the percentage of the portfolio that may be invested in certain instruments with longer terms to maturity. A copy of the City’s current investment policy can be found at www.fresno.gov/ finance/investmentpolicy.pdf.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 77 NOTE 2 - CASH AND INVESTMENTS The following graphs depict the allocation of the Treasury Pool’s assets among the various authorized investments, as well as maturity periods, as of June 30, 2020 and June 30, 2021:
City of Fresno Treasurer's Pool (Fair Value)
June 30, 2020
5.20%
3.95%
24.32%
4.81%
5.56%
0.66%
17.42%
5.97%
5.95%
0.57% 11.95%
0.65%
0.73%
10.96%
1.32%
Federal Home Loan Mortgage Corporation State Local Agency Investment Fund Medium Term Corporate Notes Negotiable Certificates of Deposit Federal Home Loan Bank Federal National Mortgage Association Money Market Funds Federal Farm Credit Bank
Cash Accounts Time Deposits
U.S. Treasury Securities Collateralized Mortgage Obligations U.S. Sovereign Bonds Municipal Bonds
Supranationals
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 78 NOTE 2 - CASH AND INVESTMENTS City of Fresno Treasurer's Pool (Fair Value)
June 30, 2021
2.32%
10.89%
26.07%
4.23%
14.93%
3.48%
1.86%
8.19%
7.55% 0.51%
8.25%
0.57%
0.63%
8.71%
1.82%
Federal Home Loan Mortgage Corporation State Local Agency Investment Fund Medium Term Corporate Notes Negotiable Certificates of Deposit Federal Home Loan Bank Federal National Mortgage Association Money Market Funds Federal Farm Credit Bank
Cash Accounts Time Deposits
U.S. Treasury Securities Collateralized Mortgage Obligations U.S. Sovereign Bonds Municipal Bonds
Supranationals
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 79 NOTE 2 - CASH AND INVESTMENTS City of Fresno
Treasurer's Pool Maturity Schedule
As of June 30, 2020
35.91%
16.41%
16.34%
17.14%
14.21%
Less than 1 Year
1 - 2 Years
2 - 3 Years
3 - 4 Years
4 - 5 Years
As of June 30, 2021
26.01%
15.38%
21.04%
19.46%
18.11%
B. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments held outside the Treasurer's Pool consist mainly of required reserve funds for various bond issues. They are held by trustees, and are not available for the City's general expenditures.
Investment agreements are used for the investment of bond proceeds in accordance with the permitted investment provisions of the specific bond indentures, which are prepared in accordance with numerous safeguards to reduce the risk associated with a provider’s ability to meet its contractual obligations.
The City has invested bond trust monies into securities with maturity periods of one to three years under a “ladder” approach to investing. Such a structure allows for reinvestment in the short- term until interest rates begin to rise. Staff believes that investing in the long-term at this time would commit the City into low earnings, instead of taking advantage of opportunities in case rates begin to rise. During fiscal year 2021, total interest of $ 0.1 million was earned from the following instruments:
• Money Market Funds - $0.1 million
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 80 NOTE 2 - CASH AND INVESTMENTS C. Types of Risk Associated with the Treasury Pool’s Investments
1. Investment Risk
The City invests in no derivatives other than structured (step-up) notes, which guarantee coupon payments. These are minimal risk instruments. All investments are held by a third- party custodian in the City’s name.
2. Deposit and Investment Risk
The risk disclosures below apply to the City's internal investment pool and deposits as well as investments held by trustees for debt service funds or bond proceeds. Portfolio investments are exposed to four main types of risk: concentration, interest rate, default, and custodial risk.
Deposits are exposed primarily to custodial credit risk.
3. Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer, which are more restrictive than those stipulated by the California Government Code. While the State has no limit on the percentage of the portfolio that can be invested in a single U.S. Government Agency Security, the City’s Investment Policy limits investment in any one issuer to 50% of the portfolio. Also, while the State limits investments to 30% of the Portfolio for any single issuer of Medium Term Notes, the City's Investment Policy limits investments to 20% of the portfolio invested in any single issuer. Investments in any one issuer (other than U.S. Treasury securities, money market funds, and external investment pools) that represent 5% or more of the total Treasurer’s Pool investments or investments with trustees are as follows (in thousands):
Treasurer's Pool Investments
Issuer Investment Type Amount % of Total
Treasurer's Pool Investments:
Federal Farm Credit Bank U.S. Government Agency $ 70,373 8.19 % Federal Home Loan Bank U.S. Government Agency 128,328 14.93 % Federal Home Loan Mortgage Corp. (FHLMC) U.S. Government Agency 19,919 2.32 % Federal National Mortgage Association (FNMA) U.S. Government Agency 29,891 3.48 % Farmer MAC U.S. Government Agency 4,923 0.57 %
$ 253,434 29.49 %
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 81 NOTE 2 - CASH AND INVESTMENTS
4. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally the longer the maturity of an investment, the greater will be the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments. Another way the City mitigates this risk is by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time to provide the cash flow and liquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The Investment Policy limits the portfolio's weighted average maturity to three years, except for debt agreements held by trustees which are governed by the indentures and may be longer.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 82 NOTE 2 - CASH AND INVESTMENTS Interest rate risk for the Treasurer’s Pool and for investments with trustees is disclosed in the following table. As of June 30, 2021, the City had the following cash and investments in its portfolio (in thousands):
Investment Maturities
Treasurer's Pool Fair Value
Less than 1
Year
1 to 5
Years
5 to 10
Years
More than
10 Years
Cash Accounts $ 64,907
Treasurer's Pool Investments
U.S. Government Agencies:
Federal Farm Credit Bank 70,372 $ — $ 70,372 $ — $ —
Federal Home Loan Bank 128,328 5,084 123,244 — —
Federal Home Loan Mortgage Corp. 19,919 — 19,919 — — Federal National Mortgage Association 29,891 5,068 24,822 — — Collateralized Mortgage Obligations 4,923 — 4,923 — — Subtotal of U.S. Government Agencies 253,433 10,152 243,280 — — U.S. Treasury Securities 70,963 30,310 40,653 — —
U.S. Sovereign Bonds 5,398 — 5,398 — —
Medium Term Corporate Notes 224,125 30,331 193,795 — — Negotiable Certificates of Deposit 36,360 5,082 31,278 — — State Local Agency Investment Fund (CA LAIF) 93,636 93,636 — — — Time Deposits 4,400 4,400 — — —
Municipal Bonds 74,872 16,820 58,052 — —
Supranationals 15,656 — 15,656 — —
Money Market Mutual Funds 16,000 16,000 — — —
Total Treasurer's Pool Investments 859,750 $ 206,731 $ 588,112 $ — $ — Investments Held Outside the Treasurer's Pool
Debt Service Funds/Bond Proceeds:
Guaranteed Investment Contracts — $ — $ — $ — $ —
Mutual Funds 47,249 47,249 — — —
U.S. Government & Agency Securities 3,247 3,247 — — — $ 50,496 $ — $ — $ —
Other Deposits 7,918
Outstanding Checks (8,141)
Deposits in Transit 2,922
Petty Cash 195
Pension Trust Assets (See separate ACFRs) 3,957,519
Total Cash and Investments $ 4,870,659
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 83 NOTE 2 - CASH AND INVESTMENTS
5. Default Credit Risk
Generally, default credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by a nationally recognized statistical rating organization.
The following table represents the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type:
Treasurer's Pool Investments:
U.S. Government Agency Securities:
Federal Farm Credit Bank $ 70,373 A AA+ 8.19%
Federal Home Loan Bank 128,328 A AA+ 14.93%
Federal Home Loan Mortgage Corporation 19,919 A AA+ 2.32% Federal National Mortgage Association 29,891 A AA+ 3.48% Farmer MAC 4,923 Unrated Unrated 0.57%
U.S. Treasury Securities 70,963 A AAA 8.25%
U.S. Sovereign Bonds 5,398 A AA+U 0.63%
Medium Term Corporate Notes:
AIG Global Funding 4,956 A A+ 0.58%
Apple Inc 8,952 A AA+ 1.04%
Bank of America 14,976 A A- 1.74%
Bank of New York 3,181 A A 0.37%
Berkshire Hathaway Inc 5,188 A AA 0.60%
Caterpillar, Inc. 5,102 A A 0.59%
Chevron Corp 10,369 A AA- 1.21%
Credit Suisse 5,053 A A+ 0.59%
Estee Lauder Co 5,113 A A+ 0.59%
Exxon Mobil Corporation 5,365 A AA- 0.62%
Florida Power & Light 5,348 A A+ 0.62%
Guardian Life 5,027 A AA+ 0.58%
Harvard Pres & Fellows 4,149 A AAA 0.48%
HSBC USA Inc. 5,417 A A- 0.63%
JP Morgan Chase 9,854 A A- 1.15%
Lloyds Bank 5,443 A A+ 0.63%
Massmutual Global Fund 5,051 A AA+ 0.59%
New York Life 5,308 A AA+ 0.62%
Novartis Capital Corp 5,126 A AA- 0.60%
Oracle * 15,481 A BBB+ 1.80%
Pricoa Global Funding 5,337 A AA- 0.62%
Principal Lfe Glb Fnd 5,032 A A+ 0.59%
Protective Life 5,018 A AA- 0.58%
Royal Bank of Canada 4,984 A A 0.58%
Sanofi Pharmaceutical 5,287 A AA 0.61%
Shell International Fin 10,541 A A+ 1.23%
Toyota Motor Credit Corp 17,309 A A+ 2.01%
U.S. Bank Corp 10,145 A A+ 1.18%
UBS Finance Delaware 4,994 A A+ 0.58%
U.S. Bank Na Cincinnati 10,645 A AA- 1.24%
Wal-Mart Stores 5,336 A AA 0.62%
Wells Fargo Bank 5,038 A A+ 0.59%
* Investment in Oracle notes sold subsequent to fiscal year end.
Issuer Amount
(in thousands)
Minimum
Legal
Rating
Rating at
Year-End
% of
Treasurer's
Pool
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 84 NOTE 2 - CASH AND INVESTMENTS Municipal Bonds
Antelope Valley Union High 1,869 NA AA 0.22%
California Dept Water Resource 4,060 NA AA+ 0.47%
California St Housing Finance 3,544 NA AA 0.41%
City of Vallejo 1,519 NA AA 0.18%
County of Riverside Ca 5,293 NA AA+ 0.62%
County of Westchester Ny 1,924 NA AA+ 0.22%
Los Alstos School Dist 5,053 NA AAA 0.59%
New York State Dormitory 1,649 NA AA- 0.19%
New York State Dormitory 997 NA AA- 0.12%
New York State Urban Dev 5,172 NA AA- 0.60%
New York State Urban Dev 1,257 NA AA- 0.15%
State of California 5,206 NA AA- 0.61%
State of California 5,330 NA AA- 0.62%
State of California 5,418 NA A 0.63%
State of Connecticut 5,204 NA A 0.61%
State of Hawaii 3,798 NA AA+ 0.44%
State of Wisconsin 4,125 NA SP-1+1 0.48%
Texas A&M University 5,193 NA AA- 0.60%
Texas A&M University 3,246 NA AAA 0.38%
University of California 5,016 NA AAA 0.58%
Supranational
Inter American Development Bank 5,334 AA AAA 0.62%
Inter American Development Bank 5,193 AA AAA 0.60%
International Bank for Reconstruction & Dev 5,130 AA AAA 0.60% Negotiable Certificates of Deposit 36,360 NA Unrated 4.23% State Local Agency Investment Pool 93,636 NA Unrated 10.89% Time Deposits 4,400 NA Unrated 0.51%
Money Market Mutual Funds 16,000 NA Unrated 1.86%
Total Treasurer's Pool Investments $ 794,846 92.46%
Issuer Amount
(in thousands)
Minimum
Legal
Rating
Rating at
Year-End
% of
Investments
with Trustees
Investments with Trustees:
Money Market Funds $ 47,249 NA Unrated 93.57%
U.S. Government & Treasury Securities 3,247 NA AAA 6.43% Total Investments with Trustees $ 50,496 100.00%
1Standard & Poor's rating of SP-1 indicates a strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation.
Issuer Amount
(in thousands)
Minimum
Legal
Rating
Rating at
Year-End
% of
Treasurer's
Pool
The City of Fresno’s Investment Policy requires that the City only invest in high quality obligations, which means only those with a rating category of “A” or better by a nationally recognized rating service.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 85 NOTE 2 - CASH AND INVESTMENTS
6. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The City maintains cash accounts at Bank of America. The City maintains separate accounts for payment of general accounts payable checks, payroll checks, and utility refund checks. Amounts in excess of $250,000 are securitized in accordance with California Government Code Section 53652. The California Government Code and the City’s investment policy contain legal or policy requirements that limit the exposure to custodial credit risk for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The collateral pledged to cover the public fund deposits in California is held in the name of the California Collateral Pool Administrator and is held in their name by the Federal Reserve Bank as custodian. The City had no uncollateralized cash at June 30, 2021 .
As of June 30, 2021 , the City’s deposits with institutions in excess of federal depository insurance limits were $63.5 million held in accounts collateralized in accordance with California law as described above.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to the transaction, a government will not be able to recover the value of its investment of securities that are in the possession of the counterparty. As of June 30, 2021 , in accordance with the City's investment policy, none of the City's investments were held with a counterparty. All of the City's investments were held with an independent third party custodian bank. The City uses Bank of New York Trust Company (BNY) as a third- party custody and safekeeping service for its investment securities. Custodial credit risk is the risk that the City will not be able to recover the value of its investments in the event of a BNY failure. All City investments held in custody and safe-keeping by BNY are held in the name of the City and are segregated from securities owned by the bank. This is the lowest level of custodial credit risk exposure.
D. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on a fair value cost basis.
The total amount invested by all public agencies in LAIF as of June 30, 2021, was $37.1 billion. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2021 , had a balance of $193.3 billion . Of that amount, 2.31% was invested in medium-term and short-term CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 86 NOTE 2 - CASH AND INVESTMENTS structured notes and asset-backed securities. The average maturity of PMIA investments was 291 days as of June 30, 2021.
LAIF has the following restrictions on withdrawals:
• For same day transactions, the requesting agency must contact LAIF by 10 a.m. PST. • Transaction calls received after 10 a.m. are processed the following business day. • A requesting agency can only conduct a maximum of 15 transactions (combination of deposits and withdrawals) per month.
• 24-hour notice is needed for withdrawals of $10 million or more. • The minimum transaction amount is $5,000, with amounts above the minimum transacted in increments of $1,000.
• Prior to the funds transfer, an authorized person from the requesting agency must call LAIF to do a verbal transaction.
E. Pension Trust (Retirement Systems) Deposits and Investments The investment guidelines for the City of Fresno’s Retirement Systems (Systems) reflect the duties imposed by an investment standard known as the “prudent expert rule.” The prudent expert rule includes anyone who has discretionary authority with respect to the Systems’ investments.
The Fire and Police Retirement System's Investment Policy can be found at https://www.cfrs- ca.org/fire-and-police-retirement-system_investments, while the Employees Retirement System's Investment Policy can be found at https://www.cfrs-ca.org/employee-retirement-system/investments.
Both investment policies can also be obtained by contacting the Retirement Office at 2828 Fresno Street, Suite 201, Fresno, CA 93721.
Northern Trust serves as custodian of the Systems’ investments. The Systems’ asset classes include U.S. Equity, International Equity, U.S. Fixed Income, International Fixed Income, Direct Lending, and Real Estate. Any class may be held in direct form, pooled form, or both. The Systems have 15 external investment managers, managing 19 individual portfolios.
Investments at June 30, 2021 consist of the following (in thousands):
Investments at Fair Value
Domestic Equity $ 1,383,292
International Developed Market 588,786
International Emerging Market 144,512
Real Estate 465,224
Government Bonds 149,660
Corporate Bonds 381,524
Short-Term Investments 57,917
Alternatives 610,601
Total Investments at Fair Value $ 3,781,516
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 87 NOTE 2 - CASH AND INVESTMENTS Both Retirement Boards have established policies for investing, specifying the following target allocations with a minimum and maximum range for each of these asset classes:
Asset Class Minimum Target Maximum
Domestic Large Cap Equities 10.0% 15.8% 26.0%
Domestic Small Cap Equities 2.0% 7.2% 12.0%
International Developed Market Equities 14.0% 19.0% 24.0% International Emerging Market Equities 3.0% 6.0% 9.0%
Core Fixed Income 7.0% 10.0% 15.0%
High Yield Bonds 4.0% 5.0% 12.0%
Core Real Estate 7.0% 11.0% 15.0%
Value Add Real Estate/REITs 2.0% 4.0% 6.0%
Infrastructure 2.0% 4.0% 6.0%
MLPs 2.0% 5.0% 8.0%
Private Equity 0.0% 5.0% 10.0%
Direct Lending/Private Debt 4.0% 8.0% 12.0%
Short-Term Investments 0.0% 0.0% 0.0%
100.0%
The Retirement Systems have investments in Tiers 1, 2, and 3 as defined under GASB Statement No.
72. For further information regarding the Retirement Systems’ classification of investment, please see the Retirement Systems’ Annual Comprehensive Financial Reports (Systems' ACFRs).
Investments of the Systems are exposed to custodial credit risk, credit and interest rate risk, concentration risk, and foreign currency risk. In addition to those risks, the Systems are also exposed to credit risk and market risk associated with their derivatives investments. For a detailed description of all of the risks associated with the Systems’ investments, please see the Systems’ ACFRs which can be found at https://www.cfrs-ca.org/fire-and-police-retirement-system/financial/ and https:// www.cfrs-ca.org/employee-retirement-system/ers-financial/ or by contacting the Retirement Office at 2828 Fresno Street, Suite 201 Fresno, CA 93721.
F. Stewardship, Compliance and Accountability
There have been no material violations of finance-related legal or contractual provisions.
G. Restricted Assets
Restricted cash includes funds held by trustees relating to bonds payable and those amounts held by each fund for which a specific, non-operating use has been determined. Restricted interest receivable is interest earned with the trustee.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 88 NOTE 2 - CASH AND INVESTMENTS Restricted assets are as follows at June 30, 2021 (in thousands):
Cash and
Investments
Current and
Noncurrent
Interest
Receivable Total
Governmental Activities:
General Fund $ 40,655 $ — $ 40,655
Grants Special Revenue Fund 103,730 — 103,730
Nonmajor Governmental Funds 17,933 — 17,933
Internal Service Funds 842 — 842
Subtotal 163,160 — 163,160
Business-Type Activities
Water System 58,970 174 59,144
Sewer System 52,388 208 52,596
Solid Waste Management 16,377 — 16,377
Transit 25,049 — 25,049
Airports 39,935 — 39,935
Convention Center 2,848 — 2,848
Stadium 3,077 — 3,077
Nonmajor Enterprise Funds 781 — 781
Internal Service Funds 5,189 — 5,189
Subtotal 204,614 382 204,996
Fiduciary:
Private-Purpose Trust Fund 447 — 447
Custodial Funds 594 — 594
Subtotal 1,041 — 1,041
Total $ 368,815 $ 382 $ 369,197
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 89 NOTE 2 - CASH AND INVESTMENTS Note 3. Property Taxes
Article XIII of the California Constitution (Proposition 13) limits ad valorem taxes on real property to 1% of value plus taxes necessary to pay indebtedness approved by voters prior to July 1, 1978. The Article also established the 1975/1976 assessed valuation as the base and limits annual increases to the cost-of-living adjustment, not to exceed 2% for each year thereafter. Property may also be reassessed to full market value after a sale, transfer of ownership, or completion of new construction. The State is prohibited under the Article from imposing new ad valorem, sales, or transaction taxes on real property. Local government may impose special taxes (except on real property) with the approval of two-thirds of the qualified electors.
All property taxes are collected and allocated by the County of Fresno to the various taxing entities.
Property taxes are determined annually as of January 1 and attached as enforceable liens on real property. Taxes are due November 1 and February 1 and are delinquent if not paid by December 10 and April 10, respectively. Secured property taxes become a lien on the property on January 1.
Property taxes on the unsecured roll are due on the January 1 (lien date) and become delinquent if unpaid on August 31. Property tax revenues are recognized in the governmental funds in the fiscal period for which they are levied and collected, adjusted for any amounts deemed uncollectible and amounts expected to be collected more than 60 days after the fiscal year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
90 NOTE 3 - PROPERTY TAXES Note 4. Receivables
Receivables are presented in the financial statements net of the allowance for uncollectible accounts.
The uncollectible accounts related to accounts receivable at June 30, 2021 were $ 3.1 million for the General Fund, $ 2.4 million for Water System, $ 1.7 million for Sewer System, $ 1.3 million for Solid Waste Management, $ 0.5 million for Airports, and $ 1.9 million for Other Enterprise Funds. The uncollectible accounts related to notes receivable at June 30, 2021 were $ 11.0 million for Grants Special Revenue Fund and $ 1.8 million for Other Governmental Funds. Accounts not scheduled for collection during the subsequent year are $ 69.4 million for Governmental notes and loans and $ 17.4 million for Business-Type notes and loans.
The allowance for doubtful accounts is a Statement of Net Position and/or Balance Sheet account that reduces the reported amount of a receivable. Providing an allowance for doubtful accounts presents a more realistic picture of how much of the receivable is likely to be turned into cash, particularly in the near term. The amount of the allowance for each fund is a determination made by management at the end of the fiscal year through a review of past collections received on each account. This analysis includes reviewing the aging of the receivable balance, past account write-offs and other known variables.
Receivables, net of amounts uncollectible, (in thousands) as of June 30, 2021 were as follows:
Intergovernmental Receivable Loans, &
Interest
Accounts
Receivable
Grants
Receivable
Property
Taxes Other
Other
Receivable Total
Governmental Activities
General Fund $ 320 $ 17,600 $ 6 $ 11,603 $ 31,887 $ — $ 61,416 Grants Special Revenue Fund 292 — 13,566 — — 55,366 69,224 Other Governmental Funds 516 211 1,277 — 5,912 20,614 28,530 Internal Service Funds 413 230 — — — — 643
Subtotal $ 1,541 $ 18,041 $ 14,849 $ 11,603 $ 37,799 $ 75,980 $ 159,813 Advances to Successor Agency 8,902
Total $ 168,715
Business-Type Activities
Water System $ 863 $ 21,672 $ — $ — $ — $ 2,037 $ 24,572 Sewer System 672 11,629 — — 874 5,840 19,015
Solid Waste Management 135 5,965 — — — 11,172 17,272 Transit 140 376 31,994 — 13,027 — 45,537
Airports 189 3,073 1,806 — 135 — 5,203
Fresno Convention Center — 1,360 — — — — 1,360
Stadium 16 469 — — — — 485
Other Enterprise Funds 14 1,743 — — — — 1,757
Internal Service Funds 85 1,421 — — — — 1,506
Total $ 2,114 $ 47,708 $ 33,800 $ — $ 14,036 $ 19,049 $ 116,707 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
91 NOTE 4 - RECEIVABLES
Receivables are presented on the Statement of Net Position as follows (in thousands):
Governmental
Activities
Business-Type
Activities Total
Accounts Receivables, Net $ 92,736 $ 97,276 $ 190,012
Restricted Interest Receivable — 382 382
Loans, Notes, Leases and Other Receivables, Net 75,980 19,050 95,030 Total $ 168,716 $ 116,708 $ 285,424
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
92 NOTE 4 - RECEIVABLES
Note 5. Property, Plant and Equipment - Capital Assets A. Citywide Capital Assets
The following is a summary of capital assets as of June 30, 2021 (in thousands):
Primary Government
Governmental
Activities
Business-Type
Activities
Fiduciary
Funds Total
Capital Assets Not Being Depreciated:
Land $ 263,040 $ 54,426 $ — $ 317,466
Intangibles (Indefinite Life) — 17,949 — 17,949
Construction in Progress 71,103 408,818 — 479,921
Total Capital Assets Not Being Depreciated 334,143 481,193 — 815,336 Capital Assets Being Depreciated:
Buildings and Improvements 307,178 1,041,179 — 1,348,357 Machinery and Equipment 165,773 94,578 2,850 263,201 Infrastructure 1,451,934 1,011,057 — 2,462,991
Total Capital Assets Being Depreciated 1,924,885 2,146,814 2,850 4,074,549 Less: Accumulated Depreciation for:
Buildings and Improvements (162,228) (459,894) — (622,122) Machinery and Equipment (104,901) (56,845) (1,742) (163,488) Infrastructure (1,049,827) (350,723) — (1,400,550)
Total Accumulated Depreciation (1,316,956) (867,462) (1,742) (2,186,160) Total Capital Assets Being Depreciated, Net 607,929 1,279,352 1,108 1,888,389 Total Capital Assets, Net $ 942,072 $ 1,760,545 $ 1,108 $ 2,703,725 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
93 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS B. Governmental Activities
Capital asset activity related to governmental activities for the fiscal year ended June 30, 2021 was as follows (in thousands):
Beginning
Balance Increases Decreases Ending
Balance
Capital Assets Not Being Depreciated:
Land $ 261,608 $ 1,740 $ (308) $ 263,040
Construction in Progress 71,563 20,474 (20,934) 71,103 Total Capital Assets Not Being Depreciated 333,171 22,214 (21,242) 334,143 Capital Assets Being Depreciated:
Buildings and Improvements 309,137 12,735 (14,694) 307,178 Machinery and Equipment 179,936 14,504 (28,667) 165,773 Infrastructure 1,420,907 31,027 — 1,451,934
Total Capital Assets Being Depreciated 1,909,980 58,266 (43,361) 1,924,885 Less: Accumulated Depreciation for:
Buildings and Improvements (163,383) (9,722) 10,877 (162,228) Machinery and Equipment (119,071) (13,431) 27,601 (104,901) Infrastructure (1,016,159) (33,668) — (1,049,827)
Total Accumulated Depreciation (1,298,613) (56,821) 38,478 (1,316,956) Total Capital Assets Being Depreciated, Net 611,367 1,445 (4,883) 607,929 Total Capital Assets, Net $ 944,538 $ 23,659 $ (26,125) $ 942,072 Depreciation was charged to functions as follows (in thousands):
Function Depreciation
Amount
General Government $ 10,812
Public Protection 5,049
Public Ways and Facilities 35,955
Culture and Recreation 4,252
Community Development 753
Total Governmental Activities Depreciation Expense $ 56,821 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
94 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS C. Business-Type Activities
Capital asset activity related to Business-Type Activities for the fiscal year ended June 30, 2021 was as follows (in thousands):
Beginning
Balance Increases Decreases Ending
Balance
Capital Assets Not Being Depreciated:
Land $ 48,891 $ 5,538 $ (3) $ 54,426
Intangibles (Indefinite Life) 17,698 251 — 17,949
Construction in Progress 430,229 77,989 (99,400) 408,818 Total Capital Assets Not Being Depreciated 496,818 83,778 (99,403) 481,193 Capital Assets Being Depreciated:
Buildings and Improvements 964,378 103,352 (26,551) 1,041,179 Machinery and Equipment 98,777 6,651 (10,850) 94,578 Infrastructure 1,072,341 6,425 (67,709) 1,011,057
Total Capital Assets Being Depreciated 2,135,496 116,428 (105,110) 2,146,814 Less: Accumulated Depreciation for:
Buildings and Improvements (446,850) (34,971) 21,927 (459,894) Machinery and Equipment (61,456) (5,969) 10,580 (56,845) Infrastructure (370,203) (34,316) 53,796 (350,723)
Total Accumulated Depreciation (878,509) (75,256) 86,303 (867,462) Total Capital Assets Being Depreciated, Net 1,256,987 41,172 (18,807) 1,279,352 Total Capital Assets, Net $ 1,753,805 $ 124,950 $ (118,210) $ 1,760,545 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
95 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS Depreciation was charged to functions as follows (in thousands):
Function Depreciation
Amount
Water System $ 29,773
Sewer System 24,865
Solid Waste Management 588
Transit 5,385
Airports 10,845
Fresno Convention Center 2,340
Stadium 1,275
Other Enterprise Funds 185
Total Business-Type Activities Depreciation Expense $ 75,256 D. Fiduciary Funds
Capital asset activity related to fiduciary funds for the fiscal year ended June 30, 2021 was as follows (in thousands):
Beginning
Balance Increases Decreases Ending
Balance
Capital Assets Not Being Depreciated:
Construction in Progress $ — $ — $ — $ —
Capital Assets Being Depreciated:
Machinery and Equipment 2,849 1 — 2,850
Less: Accumulated Depreciation for:
Machinery and Equipment (1,470) (272) (1,742)
Total Capital Assets Being Depreciated, Net 1,379 (271) — 1,108 Total Capital Assets, Net $ 1,379 $ (271) $ — $ 1,108
Depreciation was charged to functions as follows (in thousands):
Function Depreciation
Amount
Fire & Police Retirement System Pension Trust Funds $ 136 Employee Retirement System Pension Trust Funds 136
Total Business-Type Activities Depreciation Expense $ 272 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
96 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS E. Construction in Progress
At June 30, 2021, Construction in Progress consisted of the following (in thousands):
Project Title Construction Costs
To Date*
Governmental Activities:
General Street Projects $ 36,072
Regional Park Improvements 26
Other Miscellaneous Projects 35,005
Total Governmental Activities $ 71,103
Business-Type Activities:
Water Capital Projects $ 235,389
Sewer/Wastewater/Solid Waste Capital Projects 125,664
Airports Capital Projects 35,872
Transit Capital Projects 11,424
Miscellaneous Projects 469
Total Business-Type Activities $ 408,818
Total Construction in Progress $ 479,921
F. Fully Depreciated Assets
During the 2021 fiscal year, a detailed analysis of City-owned property was performed. All assets that were no longer in service were removed. The retirement of assets not in use City-wide totaled to $99.6 million.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
97 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS Note 6. Long-Term Liabilities
A. Summary of Long-Term Liabilities
The following is a summary of the City's Long-Term Liabilities as of June 30, 2021 (in thousands):
Primary Government
Governmental
Activities
Business-Type
Activities
Fiduciary
Funds
Total Primary
Government
Long-Term Debt
Revenue and Other Bonds $ 214,085 $ 177,934 $ — $ 392,019 Bonds From Direct Placements — 34,244 — 34,244
Tax Allocation Bonds — — 815 815
Notes Payable From Direct Borrowings 1,648 424,552 1,212 427,412 Subtotal Net Principal Due 215,733 636,730 2,027 854,490 Accreted Interest — 3,355 — 3,355
Issuance Premiums (Discounts) 9,774 1,693 (1) 11,466 Subtotal Accreted Interest, Issuance Prem/(Disc) 9,774 5,048 (1) 14,821 Capital Lease Obligations 41,153 — — 41,153
Total Long-Term Debt 266,660 641,778 2,026 910,464
Other Long-Term Liabilities
Retention Payable 2,358 — — 2,358
Compensated Absences and Health Retirement
Arrangement (HRA) 70,378 13,530 56 83,964
Net OPEB Liability 108,178 44,426 — 152,604
Liabilities for Self-Insurance 192,233 — — 192,233
CVP Litigation Settlement — 113 — 113
Accrued Closure Cost — 12,104 — 12,104
Pollution Remediation — 452 — 452
Total Other Long-Term Liabilities 373,147 70,625 56 443,828 Total Long-Term Liabilities Government-Wide
Statement of Net Position $ 639,807 $ 712,403 $ 2,082 $ 1,354,292 Due Within One Year $ 86,619 $ 21,459 $ 482 $ 108,560
Due Within More Than One Year 553,188 690,944 1,600 1,245,732 Total Long-Term Liabilities Government-Wide
Statement of Net Position $ 639,807 $ 712,403 $ 2,082 $ 1,354,292
Internal service funds (ISFs), except for Utility Billing and Collection, primarily serve the governmental funds. Accordingly, Long-Term Liabilities for ISFs are included as part of the above totals for governmental activities, while the long-time liabilities for Utility Billing and Collection are included as part of the totals for Business-Type Activities. Governmental Activities also reflect compensated absences which are generally liquidated by the General Fund, claims/judgments which are liquidated by Risk Management and the Employees Healthcare Plan, and net OPEB liability which is liquidated by the Employees Healthcare Plan.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
98 NOTE 6 - LONG-TERM LIABILITIES Activity of Long-Term Liabilities - Governmental (In Thousands) Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Governmental Activities:
Bonds Payable (Revenue and Other Bonds):
Lease Revenue Bonds, Series 2004 $ 11,510 $ — $ 885 $ 10,625 $ 935 Taxable Pension Obligation Bonds Refunding
Series 2002 107,555 — 9,160 98,395 9,755
Lease Revenue Bonds 2017A, City Hall Refunding,
Fresno Bee Building, Granite Park, Improvements 22,805 — 3,565 19,240 1,645 Lease Revenue Bonds, Series 2017A, City Hall
Chilled 2,710 — — 2,710 —
Lease Revenue Bonds, Series 2017A Parks
Projects 21,540 — 765 20,775 805
Lease Revenue Bonds, Series 2017A&B, NNLB 8,115 — 2,580 5,535 2,705 Lease Revenue Bonds, Series 2017A, Police and
Fire/Public Safety 29,985 — 1,110 28,875 1,170
Lease Revenue Bonds, Series 2017A, Various 11,360 — 575 10,785 605 Lease Revenue Bonds, Series 2020A, Animal Svcs 17,145 — 17,145 375 Total Revenue and Other Bonds 215,580 17,145 18,640 214,085 17,995 Less: Unamortized Amounts:
For Issuance Premiums/(Discounts) 8,115 2,774 1,115 9,774 — Notes Payable From Direct Borrowings:
California Infrastructure Bank - City 1,481 — 84 1,397 87 HUD Sec 108 Note Neighborhood Streets/Parks 365 — 114 251 121 Total Notes Payable From Direct Borrowings 1,846 — 198 1,648 208 Capital Leases 43,121 7,055 9,023 41,153 8,858
Total Long-Term Debt 268,662 26,974 28,976 266,660 27,061 Other Liabilities:
Retention Payable 1,089 1,269 — 2,358 2,358
Compensated Absences and Health Retirement
Arrangement 66,833 15,032 11,487 70,378 10,162
Net OPEB Liability 105,415 2,763 — 108,178 —
Liability for Self-Insurance 154,408 111,768 73,943 192,233 47,038 Total Other Liabilities 327,745 130,832 85,430 373,147 59,558 Governmental Long-Term Liabilities Total $ 596,407 $ 157,806 $ 114,406 $ 639,807 $ 86,619 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
99 NOTE 6 - LONG-TERM LIABILITIES Activity of Long-Term Liabilities - Business-Type (In Thousands) Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Business-Type Activities:
Bonds Payable (Revenue and Other Bonds):
Water System Revenue Bonds 2010 $ 118,975 $ — $ 27,635 $ 91,340 $ — Sewer System Revenue Bonds 1993 A 6,935 — 6,050 885 — Lease Revenue Bonds 1998 - Exhibit Hall Expansion 1,815 — 246 1,569 234 Airport Revenue Refunding Bonds 2013 25,110 — 1,595 23,515 1,670 Lease Revenue Bonds 2001 A and B - Stadium 13,615 — 865 12,750 925 Airport Revenue Bonds 2007 - Cons. Rental Car 20,755 — 370 20,385 435 Lease Revenue Bonds 2008 - Convention Center 5,580 — 2,035 3,545 2,175 Lease Revenue Bonds 2017A - Exhibit Hall Expansion 9,970 — 910 9,060 950 Lease Revenue Bonds 2017A - Convention Center 3,285 — 405 2,880 425 Lease Revenue Bonds 2017A - Stadium 11,355 — 805 10,550 845 Lease Revenue Bonds 2017A - Riverside Golf Course 1,510 — 55 1,455 55 Total Revenue and Other Bonds 218,905 — 40,971 177,934 7,714 Bonds Payable From Direct Placements:
Airport Revenue Bonds 2019 - Airport Parking 35,000 — 756 34,244 780 Plus Accreted Interest:
Accreted Interest on Capital Appreciation Bonds 3,595 264 504 3,355 — Less: Unamortized Amounts
For Issuance Premiums/(Discounts) 2,886 — 1,193 1,693 — Notes Payable From Direct Borrowings:
Construction of Water Supply Disinfection Buildings 1,228 — 95 1,133 97 Improvements on the Enterprise and Jefferson Canals 784 — 60 724 62 Water Meter Project 35,984 — 2,570 33,414 2,570
Southeast Surface Water Treatment Facility 160,222 8,109 4,578 163,753 2,361 Tertiary Treatment Facility 29,329 — 993 28,336 1,003 Enterprise Canal Raw Water Pipeline 20,246 26 579 19,693 588 Regional Transmission Mains 65,943 620 1,776 64,787 1,810 Kings River Pipeline 54,579 170 1,562 53,187 1,589 Southwest Quadrant Recycled Water Dist. System 38,780 20,745 — 59,525 — Total Notes Payable From Direct Borrowings 407,095 29,670 12,213 424,552 10,080 Total Long-Term Debt 667,481 29,934 55,637 641,778 18,574 Other Long-Term Liabilities:
Compensated Absences & Health Retirement
Arrangement 13,168 2,895 2,533 13,530 2,085
Net OPEB Liability 43,257 1,169 — 44,426 —
CVP Litigation Settlement — 113 — 113 —
Accrued Closure Cost 13,172 — 1,068 12,104 800
Pollution Remediation 486 — 34 452 —
Total Other Long-Term Liabilities 70,083 4,177 3,635 70,625 2,885 Business-Type Long-Term Liabilities Total $ 737,564 $ 34,111 $ 59,272 $ 712,403 $ 21,459 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
100 NOTE 6 - LONG-TERM LIABILITIES Activity of Long-Term Liabilities - Fiduciary (In Thousands) Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Fiduciary Funds:
Successor Agency to the Fresno
Redevelopment Agency:
Tax Allocation Bonds:
Series 2003, Mariposa Project Area $ 1,185 $ — $ 370 $ 815 $ 397 Total Tax Allocation Bonds 1,185 — 370 815 397
Less: Unamortized Amounts:
For Issuance Premiums/(Discounts) (2) — 1 (1) —
Total Unamortized Amounts (2) — 1 (1) —
Notes Payable From Direct Borrowings:
California Infrastructure Bank 1,285 — 73 1,212 75 Total Notes Payable From Direct Borrowings 1,285 — 73 1,212 75 Total Long-Term Debt 2,468 — 444 2,026 472
Other Liabilities:
Compensated Absences 46 14 4 56 10
Total Other Long-Term Liabilities 46 14 4 56 10
Fiduciary Funds Long-Term Liabilities Total $ 2,514 $ 14 $ 448 $ 2,082 $ 482 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
101 NOTE 6 - LONG-TERM LIABILITIES The following is a description of Long-Term Debt, Excluding Capital Lease Obligation, which had activity in 2021 (in thousands):
Governmental
Revenue and Other Bonds
Taxable Pension
Obligation Bonds 2002
$205,335
taxable
Refund 2000
Taxable Pension
Obligation Bonds
6.46% to
6.55%
2/21/2002 6/1/2029 Repayment of bonds not limited to any special source of City funds. Principal due annually, interest due
semiannually. City uses funds throughout the City based on full-time employees assigned to funds. For the General Fund, the City uses dedicated Property Tax Override
(PTO) revenue first, and then other General Fund
revenues to make its portion of the bond payment. Other citywide revenues make up the difference between total
debt service and the General Fund portion. During 2021 $15,216,883 of PTO revenue was used. In addition to PTO revenue, $0 of General Fund and $970.946 of Enterprise
Fund/Internal Service Fund revenues were used to make
the 2021 debt service payment of $16,188.
$9,755 to
$15,195
$ 98,395 $ 0 $ 98,395 $ 129,523 $ 16,188
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A&B, No Neighborhood
Left Behind (NNLB)
A = $11,010
tax-exempt; B
= $1,940
taxable
Refinance No
Neighborhood Left
Behind Projects
2.93% to
5.00%
5/10/2017 4/1/2023 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $2,962 was equal to debt service in 2021.
$2,705 to
$2,830
5,757 (222) 5,535 5,930 2,962
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds
(Chiller) 2017 A, City Hall
Chiller
A = $2,710
tax-exempt
Refinance City Hall
Chiller
5.000% 5/10/2017 4/1/2024 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $136 was equal to debt
service in 2021.
$610 to
$2,100
2,910 (200) 2,710 3,086 136
Fresno Joint Powers
Financing Authority:
Lease Financing
Refunding 2017 A&B,
City Hall, Garage #7,
Bee Bldg & Granite Park
A = $10,125
tax-exempt; B
= $21,980
taxable
Refinance City Hall,
Parking Garage #7,
Fresno Bee Building
and Granite Park
2.93% to
5.00%
5/10/2017 4/1/2031 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $4,428 was equal to debt service in 2021.
$1,645 to
$2,270
19,240 0 19,240 23,637 4,428
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Various Capital
Projects
A = $12,435
tax-exempt
Refinance Various
Capital
Improvement
Projects
5.000% 5/10/2017 4/1/2035 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,143 was equal to debt service in 2021.
$40 to $1,785 12,080 (1,295) 10,785 16,061 1,143
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
2004 A,B,C, Various
Capital Projects
A = $15,810
tax-exempt; B
= $8,100 tax-
exempt; C =
$28,870
taxable
Calcot Project, Fire
Department
Projects, Downtown
Parking Projects,
Santa Fe Depot
Project, Roeding
Business Park
Project Area, other
capital projects
5.900% 4/28/2004 10/1/2034 Repayment payable solely by revenues pledged in trust agreement, primarily Base Rental Payments. Principal due annually, interest due semiannually. Lease revenue of
$1,538 was equal to debt service in 2021.
$935 to
$1,400
10,634 (9) 10,625 13,666 1,538
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds (Parks
Projects) 2017 A, Parks
Impact Fee Projects
A = $22,965
tax-exempt
Refinance
Improvements to
Various Park
Facilities
5.000% 5/10/2017 4/1/2038 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,820 was equal to debt service in 2021.
$805 to
$1,755
23,110 (2,335) 20,775 30,953 1,820
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Police and Fire/Public
Safety
A = $32,065
tax-exempt
Refinance Public
Safety Capital
Improvement
Projects (Police &
Fire)
5.000% 5/10/2017 4/1/2039 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $2,553 was equal to debt service in 2021.
$1,115 to
$2,300
31,891 (3,016) 28,875 43,307 2,553
Series Purpose
Rate
Range Issue Date
Maturity
Date Note
Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
102 NOTE 6 - LONG-TERM LIABILITIES Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
2020 A, Animal Services
Facility
A =
$17,145,000
tax-exempt
Animal Services
Facility
4.00% to
5.00%
11/3/2020 4/1/2046 Repayment payable solely by revenues pledged in trust agreement, primarily Base Rental Payments. Principal due annually, interest due semiannually. Lease revenue of
$306,463 was equal to debt service in 2021.
$375 to
$1,075
19,842 (2,697) 17,145 27,994 306
Revenue and Other Bonds Total 223,859 (9,774) 214,085 294,157 31,074 Notes Payable
HUD: Neighborhood
Streets/Parks
$1,500
Loaned
Section 108 Note to
be used for
improvements to
various
neighborhood
streets & parks
6.07% to
6.120%
8/8/2002 8/1/2022 Annual principal payments, semiannual interest payments. $114 to $130 251 0 251 267 133 Roeding Business Park $2,441
Loaned
Loaned from the
California
Infrastructure and
Economic
Development Bank
to be used to
complete the
Roeding Business
Park
3.530% 3/18/2004 8/1/2033 Secured by Facility Lease on City Hall Annex. Annual principal payments, semiannual interest payments.
$84 to $131 1,397 0 1,397 1,741 134
Notes Payable Total 1,648 0 1,648 2,008 267
Governmental Total 225,507 (9,774) 215,733 296,165 31,341 Business-Type
Revenue and Other Bonds
Water System Revenue
Bonds (Non-Taxable)
2010 A-1, Water
A-1 = $66,810
tax-exempt
Current Refund
1998 Water Bonds
& improvements to
the Water System
N/A 2/3/2010 6/1/2024 Repayment of bonds solely from revenues derived from the operation of the City Water System, except connection fees and charges, refundable deposits and capital
contributions. Principal payable annually, interest
semiannually. Bonds were fully defeased in fiscal year 2021.
N/A $ 0 $ 0 $ 0 $ 0 $ 28,405
Water System Revenue
Bonds (Taxable Build
America Bonds) 2010
A-2, Water
A-2 = $91,340
taxable
Improvements to
the Water System
6.50% to
6.75%
2/3/2010 6/1/2040 Repayment of bonds solely from revenues derived from the operation of the City Water System, except connection fees and charges, refundable deposits and capital
contributions. Principal payable annually, interest
semiannually. During Fiscal Year 2021, a federal Build
America Bonds subsidy of $2,017 was received.
$4,090 to
$7,715
$ 90,241 $ 1,099 $ 91,340 $ 167,310 $ 6,097
Sewer System Revenue
Bonds 1993 A
A = $196,280
tax-exempt
Rehabilitation and
expansion of the
City's Wastewater
Treatment Facility
4.50% to
4.75%
10/6/1993 9/1/2023 Repayment of bonds solely from revenues derived from the operation of the City Sewer System, except connection fees and charges, refundable deposits and capital
contributions. Principal payable annually, interest
semiannually.
$885 $ 885 $ 0 $ 885 $ 945 $ 6,234
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Convention Center
A = $4,260
tax-exempt
Refinance
Convention Center
Improvement
Projects (Phase I)
5.000% 5/10/2017 4/1/2027 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2021, the City chose to make these lease payments from the General Fund in the amount of
$569, which was equal to debt service in 2021. While the City has the right to use any unencumbered funding
source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used to
make these future payments, which the Authority will then use to make the debt service payment.
$425 to $540 $ 3,148 $ (268) $ 2,880 $ 3,404 $ 569
Series Purpose
Rate
Range Issue Date
Maturity
Date Note
Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
103 NOTE 6 - LONG-TERM LIABILITIES Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
(Conv. Ctr.) 2008 F,
Convention Center
F = $21,410
taxable
Refund a portion of
2006 Convention
Center Bonds &
finance various
Convention Center
improvements
6.700% 8/14/2008 4/1/2023 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2021, the City chose to make these lease payments from the General Fund in the amount of
$2,409, which was equal to the debt service payment.
While the City has the right to use any unencumbered
funding source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used to make future lease payments, which the Authority will then use to make the debt service payment.
$1,370 to
$2,175
$ 3,541 $ 4 $ 3,545 $ 3,874 $ 2,409
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Exhibit Hall Expansion
Project Refunding
A = $11,665
tax-exempt
Refinance Exhibit
Hall Expansion
Project
5.000% 5/10/2017 4/1/2029 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,409, which was equal to debt service in 2021. While the City has the right to use any unencumbered funding source it wishes to use for
future lease payments, it is anticipated that General Fund revenues will be used to make these future payments,
which the Authority will then use to make the debt service payment.
$950 to
$1,330
$ 10,022 $ (962) $ 9,060 $ 11,212 $ 1,409
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
1998, Exhibit Hall
Expansion Project
$32,610 tax-
exempt
Construction of an
exhibit hall
N/A 9/1/1998 9/1/2028 Current Interest Serial Bonds ($25,395) and Capital Appreciation Serial Bonds ($7,215). Repayment payable
solely by revenues pledged in trust agreement, primarily Base Rental Payments pursuant to a Facilities Lease.
Principal due annually, interest due semiannually. During 2021, the City chose to make these lease payments from
the General Fund in the amount of $750 , which was equal to the debt service payment. All remaining bonds are
Capital Appreciation Bonds, so interest is accreted. While the City has the right to use any unencumbered funding
source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used to
make future lease payments, which the Authority will then use to make the debt service payment.
$162 to $234 $ 4,867 $ (3,298) $ 1,569 $ 6,000 $ 750
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Stadium Project
A = $13,510
tax-exempt
Refinance
MultiPurpose
Stadium Project
5.000% 5/10/2017 4/1/2031 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2021, the City chose to make these lease payments from the General Fund in the amount of
$1,373, which was equal to the debt service payment.
While the City has the right to use any unencumbered
funding source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used to make future lease payments, which the Authority will then use to make the debt service payment.
$845 to
$1,300
$ 11,758 $ (1,208) $ 10,550 $ 13,660 $ 1,373
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
2001 A & B, Stadium
Project
A = $23,615
tax-exempt; B
= $22,235
taxable
Acquire and
construct a
multipurpose
outdoor stadium
6.93% to
7.03%
6/12/2001 6/1/2031 Repayment payable solely by revenues pledged in trust agreement, primarily Base Rental Payments pursuant to a Facilities Lease. Principal due annually, interest due
semiannually. During 2021, the City chose to make these lease payments from the General Fund in the amount of
$1,819, which was equal to the debt service payment.
While the City has the right to use any unencumbered
funding source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used to make future lease payments, which the Authority will then use to make the debt service payment.
$925 to
$1,700
$ 12,763 $ (13) $ 12,750 $ 18,174 $ 1,819
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds
(Riverside Golf Course)
2017 A, Riverside Golf
Course
A = $1,615
tax-exempt
Refinance
Improvements to
Riverside Golf
Course
5.000% 5/10/2017 4/1/2038 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2021, the City chose to make these lease payments from the General Fund in the amount of
$129, which was equal to the debt service payment. While the City has the right to use any unencumbered funding
source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used to
make future lease payments, which the Authority will then use to make the debt service payment.
$55 to $125 $ 1,619 $ (164) $ 1,455 $ 2,166 $ 129
Series Purpose
Rate
Range Issue Date
Maturity
Date Note
Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
104 NOTE 6 - LONG-TERM LIABILITIES Airport Revenue
Refunding Bonds 2013,
Concourse Expansion
A = $10,810
Non-AMT; B =
$22,820 AMT
(Subject to
Alternative
Minimum Tax)
Refund 2000 Airport
Revenue Bonds
4.00% to
5.125%
8/6/2013 7/1/2030 Repayment of bonds solely from operation of the City Airport System. Bond Indenture requires a minimum
$1,600 of PFC Contribution toward annual debt service
from Passenger Facility Charges (PFC). During Fiscal Year 2021 $1,600 of PFC and $1,164 of eligible Airports
operation revenues were used to make the debt service
payment.
$1,670 to
$5,335
$ 23,753 $ (238) $ 23,515 $ 30,261 $ 2,764
Airport Revenue Bonds
2007, Consolidated
Rental Car Facility
$22,000
taxable
Construction of a
consolidated rental
car facility and
related
improvements
5.833% 6/14/2007 7/1/2037 Repayment of bonds solely from operation of the City Airport System. While not required under the Bond
Indenture, Airports uses Customer Facility Charge (CFC) revenues first to meet the debt payment, and then uses
other permitted revenues to cover any difference between CFC's and the debt payment. Principal due annually,
interest due semiannually. During Fiscal Year 2021 $1,570 of CFC revenues was used to fully cover the debt service payment.
$435 to
$2,265
$ 20,385 $ 0 $ 20,385 $ 33,177 $ 1,570
Airport Revenue Bonds
2019, Airport Parking
$35,000
taxable
Construction of a
parking garage
3.450% 5/3/2019 7/1/2048 Bonds privately placed with the California Infrastructure and Development Bank (I-Bank). Interest rate includes
3.15% charged by the I-Bank for interest plus 0.30%
charged by the I-Bank as a fee. Repayment of bonds
solely from operation of the City Airport System. Principal due annually, interest due semiannually.
$780 to
$1,802
$ 34,244 $ 0 $ 34,244 $ 53,145 $ 1,951
Revenue and Other Bonds Total $ 217,226 $ (5,048) $ 212,178 $ 343,328 $ 55,479 Notes Payable
Water: Safe-Drinking
Water Program
$51,405
Loaned
Contract between
the State Water
Resources Control
Board and the City
for installation of
water meters
throughout the City
of Fresno
0.000% 4/10/2012 10/1/2022 No interest loan. Repayment of the loan is funded from revenues of the Water Fund. Pledged in parity with the
pledges securing the 2010 Bonds and other State loans for Water. Principal due in semiannual installments of $1,285. $2,570 $ 33,414 $ 0 $ 33,414 $ 33,414 $ 2,570
Water: Safe Drinking
Water Program
$1,947
Loaned
Contract between
the State Water
Resources Control
Board and the City
to protect the City's
drinking water
supplies from
possible
contaminating
activities (PCA's)
2.292% 7/1/2009 7/1/2031 Repayment of loan is funded from revenues of the Water Fund. Pledged in parity with the pledges securing the
2010 Bonds and other State loans for Water. Principal and interest due in semiannual installments of $61.
$61 to $119 $ 1,133 $ 0 $ 1,133 $ 1,282 $ 122
Water: Safe Drinking
Water Program
$1,245
Loaned
Contract between
the State Water
Resources Control
Board and the City
for improvements
on the Enterprise
and Jefferson
Canals
2.292% 7/1/2009 1/1/2032 Repayment of loan is funded from revenues of the Water Fund. Pledged in parity with the pledges securing the
2010 Bonds and other State loans for Water. Principal and interest due in semiannual installments of $39.
$39 to $76 $ 724 $ 0 $ 724 $ 819 $ 78
Water: Drinking Water
State Revolving Fund
Project 1010007-029C
$26,520
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of
the Friant-Kern
Canal Raw Water
Pipeline
1.600% 4/5/2016 7/1/2048 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges securing the 2010 Bonds and other State loans for Water. Principal and interest due in semiannual installments of $451.
$579 to $889 $ 19,693 $ 0 $ 19,693 $ 23,580 $ 901
Series Purpose
Rate
Range Issue Date
Maturity
Date Note
Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
105 NOTE 6 - LONG-TERM LIABILITIES Water: Drinking Water
State Revolving Fund
Project 1010007-028C
$195,489
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Southeast Surface
Water Treatment
Facility
1.663% 7/15/2015 1/1/2049 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges securing the 2010 Bonds and other State loans for Water. Principal and interest due in semiannual installments of $3,631. $3 million of the loan was forgiven by the State Water
Resources Control Board.
$2,360 to
$7,352
$ 163,753 $ 0 $ 163,753 $ 189,932 $ 7,263
Water: Drinking Water
State Revolving Fund
Project 1010007-030C
$75,900
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
raw water pipeline
to replace the
Enterprise Canal for
the Northeast
Surface Water
Treatment Facility
1.600% 8/23/2016 1/1/2049 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges securing the 2010 Bonds and other State loans for Water. Principal and interest due in semiannual installments $1,413.
$1,810 to
$2,696
$ 64,787 $ 0 $ 64,787 $ 62,980 $ 2,826
Water: Drinking Water
State Revolving Fund
Project 1010007-031C
$65,876
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Kings River Pipeline
1.600% 4/5/2016 7/1/2048 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges securing the 2010 Bonds and other State loans for Water. Principal and interest due in semiannual installments of $1,215.
Project is not yet complete.
$1,562 to
$2,405
$ 53,187 $ 0 $ 53,187 $ 57,728 $ 2,430
Sewer: Clean Water
State Revolving Fund
Project
$33,213
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
tertiary treatment
facility
1.000% 10/17/2015 7/12/2046 Repayment of loan solely from all revenues derived from the operation of the City Sewer System, except connection fees and charges, refundable deposits and capital
contributions. Pledged subordinate to the pledge securing the 1993 Bonds and in parity with State loans for Sewer.
Principal and interest due in semiannual installments of $1,286.
$993 to
$1,282
$ 28,336 $ 0 $ 28,336 $ 32,167 $ 1,286
Sewer: Clean Water
State Revolving Fund
Project No. 8061-110
$70,600
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
recycled water
distribution system
in the southwest
quadrant of the City
1.000% 8/19/2015 5/30/2047 Repayment of loan solely from all revenues derived from the operation of the City Sewer System, except connection fees and charges, refundable deposits and capital
contributions. Pledged subordinate to the pledge securing the 1993 Bonds, and in parity with State loans for Sewer.
Principal and interest due in semiannual installments to begin once project is completed and continue for 30 years.
Until completion, interest is due semiannually on the
amount drawn down through the interest payment date.
No amortiza-
tion schedule
available until
project is
complete.
$ 59,525 $ 0 $ 59,525 $ 59,525 $ 0
Notes Payable Total $ 424,552 $ 0 $ 424,552 $ 461,427 $ 17,476 Business-Type Total $ 641,778 $ (5,048) $ 636,730 $ 804,755 $ 72,955 Series Purpose
Rate
Range Issue Date
Maturity
Date Note
Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
106 NOTE 6 - LONG-TERM LIABILITIES Fiduciary
Tax Allocation Bonds
Tax Allocation Refunding
Bonds 2003, Mariposa
Project Area
$5,005 tax-
exempt
Refund the
Agency's 1993 Tax
Allocation Bonds
(Mariposa Project
Area)
5.625% 2/1/2012 2/1/2023 Principal is due in annual installments, interest is due semiannually. Repayment of bonds is payable solely from tax increment revenues allocated by the Successor
Agency to the City of Fresno Redevelopment Agency's
Mariposa Project area. All such revenues are pledged. Tax increment in Mariposa Project Area of $437 was equal to debt service in 2021.
$397 to $418 $ 814 $ 1 $ 815 $ 884 $ 437
Tax Allocation Bonds Total $ 814 $ 1 $ 815 $ 884 $ 437
Notes Payable
RDA: Roeding Business
Park
$2,118
Loaned
Loaned from the
California
Infrastructure and
Economic
Development Bank
to be used to
complete the
Roeding Business
Park
3.530% 3/18/2004 8/1/2033 Principal and interest due in annual installments. Secured by Tax Increment revenue received into the Roeding
Business Park Project area.
$73 to $114 $ 1,212 $ 0 $ 1,212 $ 1,511 $ 117
Notes Payable Total $ 1,212 $ 0 $ 1,212 $ 1,511 $ 117
Fiduciary Total $ 2,026 $ 1 $ 2,027 $ 2,395 $ 554
Grand Total $ 869,311 $ (14,821) $ 854,490 $ 1,103,315 $ 104,850 Series Purpose
Rate
Range Issue Date
Maturity
Date Note
Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
107 NOTE 6 - LONG-TERM LIABILITIES B. Debt Service Requirements (Excluding Capital Leases) The annual debt service requirements excluding capital lease obligations for the City's long-term debt outstanding as of June 30, 2021 are as follows (in thousands):
Governmental Activities Business-Type Activities Fiduciary Funds Year Ending
June 30 Principal Interest Principal
Interest
Accretion Interest Principal Interest
2022 $ 17,995 $ 11,840 $ 7,714 $ 516 $ 11,250 $ 397 $ 46 2023 19,610 10,830 8,102 528 10,809 418 24
2024 19,045 9,716 6,176 539 10,399 — —
2025 17,940 8,610 10,614 551 10,091 — —
2026 18,270 7,545 11,150 560 9,500 — —
2027-2031 75,695 20,912 62,148 1,737 36,271 — —
2032-2036 26,400 10,005 38,475 — 18,661 — —
2037-2041 14,150 613 33,555 — 5,267 — —
2042-2046 4,980 — — — — — —
2047-2051 — — — — — — —
2052-2056 — — — — — — —
Subtotal 214,085 80,071 177,934 4,431 112,248 815 70 Direct Direct Direct Direct Direct Direct
Borrowings Borrowings Borrowings Borrowings Borrowings Borrowings Principal Interest Principal Interest Principal Interest 2022 208 59 10,860 5,041 75 41
2023 220 49 13,381 6,239 78 39
2024 93 41 13,565 6,052 81 36
2025 96 38 13,753 5,862 83 33
2026 99 35 13,944 5,668 86 30
2027-2031 552 117 72,707 25,300 479 102
2032-2036 380 20 71,955 19,922 330 18
2037-2041 — — 69,861 14,097 — —
2042-2046 — — 135,666 7,701 — —
2047-2051 — — 43,105 1,346 — —
2052-2056 — — — — — —
Subtotal 1,648 359 458,797 97,228 1,212 299
Issuance
Premiums/
(Discounts) 9,774 — 1,693 — — (1) —
Unaccreted Interest — — — (1,076) — — —
Total $ 225,507 $ 80,430 $ 638,424 $ 3,355 $ 209,476 $ 2,026 $ 369 C. Debt Compliance
There are a number of limitations and restrictions contained in the various loan, note and bond indentures. The City believes it is in compliance with all significant limitations, restrictions and covenants.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 108 NOTE 6 - LONG-TERM LIABILITIES D. Debt Management Policy
The City maintains a Debt Management Policy (Policy) which sets forth certain debt management objectives, establishes overall parameters, and provides general direction in the planning, issuing, and administering of the City’s debt. The purpose of the Policy is to assist in the City’s ability to incur debt and other long-term obligations at favorable interest rates for capital improvements, facilities and equipment which are beneficial to the City and necessary for providing essential services.
The Policy integrates the best practices of other debt management plans utilized by similar California cities and is consistent with the provisions of the City Charter, and any enabling legislation.
As part of the Lease Revenue Bond refinancing that took place in 2017, the City’s Debt Management Policy was reviewed to ensure compliance with Senate Bill 1029 (SB 1029). That update was approved by Council on April 6, 2017.
E. Legal Debt Limit and Legal Debt Margin
Article XVI, Section 18 of the California Constitution, (the “debt limit”) prohibits cities (including chartered cities), counties, and school districts from entering into indebtedness or liability that in any year exceeds the income and revenue provided for such year unless the local agency first obtains two-thirds voter approval for the obligation. This general limitation has several important exceptions as described below. It is important to remember that this limitation applies not only to traditional bonds, but could apply to many forms of indebtedness or liability, such as installment payment obligations, long-term service or construction contracts, letter-of-credit reimbursement agreements, and other types of arrangements commonly seen in public finance transactions. In determining whether the arrangement under consideration might pose a problem under the debt limit it is useful to ask the following questions:
• Does the arrangement provide for payment in future fiscal years that comes out of revenue generated in those years?
• Does the arrangement call for payments by a city, county, or school district (as opposed to other types of governmental agencies)?
If the answer to these two questions is “yes", then the analysis should proceed to determine if one of the exceptions to the debt limit applies. There are three major exceptions to the debt limit that have been recognized by California courts: the Offner-Dean lease exception, the special fund doctrine, and the “obligations imposed by law” exception.
As of June 30, 2021 , the City’s debt limit (20% of valuation subject to taxation) was $ 8.17 billion. This number was calculated by taking the Total Assessed Values (Gross) from the County of Fresno Tax Rate Book, page 14 multiplied by 20%. This is in comparison with debt limits of $ 7.71 billion in 2020.
The City’s legal debt margin is equal to the City’s debt limit because it has no debt subject to the limitation.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 109 NOTE 6 - LONG-TERM LIABILITIES F. Arbitrage
Under U.S. Treasury Department regulations, all governmental tax-exempt debt issued after August 31, 1986 is subject to arbitrage rebate requirements. The requirements stipulate, in general, the earnings from the investment of tax-exempt bond proceeds that exceed related interest expenditures on the bonds must be remitted to the federal government on every fifth anniversary of each bond issue. The City has evaluated each general obligation bond and lease revenue bond issue subject to the arbitrage rebate requirements and has deferred credits and other liabilities in the governmental funds. Each Enterprise Fund has performed a similar analysis of the debt the respective enterprise has issued which is subject to arbitrage rebate requirements. Any material arbitrage liability related to the debt of the Enterprise Funds has been recorded as a liability in the respective fund. In addition, the Successor Agency to the former Redevelopment Agency records any arbitrage liability in deferred credits and other liabilities. As of June 30, 2021, the City had an arbitrage liability of $138,951 related to the 1993A Sewer Revenue Bonds.
G. State Loan Program (Projects Currently In Progress)
On July 15, 2015 , the City entered into a 30-year agreement to borrow $ 195,489,000 from the California State Water Resources Control Board for construction of a new surface water treatment facility in southeast Fresno. The interest rate is fixed at 1.663% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021 , the City has received $ 177,894,081 in proceeds. This amount is net of $3,000,000 in loan forgiveness by the State Water Resources Control Board. The loan forgiveness was part of the loan agreement with the State. Debt service payments will be funded from revenues of the Water Enterprise. Construction is now complete and annual debt service is $7,262,903.
On August 19, 2015 , the City entered into a 30-year agreement to borrow $ 52,475,049 from the California State Water Resources Control Board’s Clean Water State Revolving Fund for construction of a recycled water distribution system in the southwest quadrant of the City. The interest rate is fixed at 1.0% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021, the City has received $59,525,038 in proceeds. Debt service payments will be funded from revenues of the Sewer Enterprise. Once construction is completed, annual debt is estimated to be $2,028,979.
On April 5, 2016 , the City entered into a 30-year agreement to borrow $ 26,520,000 from the California State Water Resources Control Board for construction of a raw water pipeline to replace the Enterprise Canal as a primary conveyance system for the Northeast Surface Water Treatment Facility. The interest rate is fixed at 1.6% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021 , the City has received $21,379,590 in proceeds. Debt service payments will be funded from revenues of the Water Enterprise. Even though the project was not CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 110 NOTE 6 - LONG-TERM LIABILITIES fully completed, the City was required to make a principal payment of $579,130 plus interest of $321,980 during the current fiscal year. Once construction is fully completed, the annual debt is estimated to be $1,116,533.
On April 5, 2016, the City entered into a 30-year agreement to borrow $65,875,669 from the California State Water Resources Control Board for construction of a pipeline from Kings River to the Southeast Water Treatment Facility. The interest rate is fixed at 1.6% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021 , the City has received $57,605,718 in proceeds. Debt service payments will be funded from revenues of the Water Enterprise. Even though the project was not fully completed, the City was required to make a principal payment of $1,562,376 plus interest of $867,478 during the current fiscal year. Once construction is fully completed, the annual debt is estimated to be $2,773,546.
On August 23, 2016 , the City entered into a 30-year agreement to borrow $75,900,000 from the California State Water Resources Control Board for construction of regional transmission mains to transport water from facilities throughout the City. The interest rate is fixed at 1.6% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021 , the City has received $67,436,972 in proceeds. Debt service payments will be funded from revenues of the Water Enterprise. Even though the project was not fully completed, the City was required to make a payment of $1,776,159 plus interest of $1,050,209. Once construction is completed, the annual debt is estimated to be $3,195,506.
H. Capital Lease Obligations
The City has entered into several Master Lease Agreements that allowed for a set amount of financing over the term of the Master Lease. Several financings took place under these Master Leases whose maturities exceeded the term of the Master Lease. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at present value of their future minimum lease payments as of the inception date. Prior lease agreements with outstanding balances are with DeLage Landen, Dell Financial Services, Kansas State Bank, Community Leasing Partners and Key Government Finance, Inc.
On December 13, 2013, the City entered into a Master Lease Agreement with Dell Financial Services to lease/purchase computers. Each lease schedule represents a separate lease with annual upfront payment terms provided by the lender at the time the computers are purchased. To date, there have been forty-five lease schedules executed totaling $1,166,318 with interest rates ranging from
3.96% to 10.15% and terms between three and five years. As of June 30, 2021, four of these leases remain outstanding.
On January 13, 2017, the City entered into a Master Equipment Lease-Purchase Agreement with Banc of America Public Capital Corp. (BAPCC). The purpose of the lease is to finance new and replacement equipment throughout the City. To date, there have been nineteen lease schedules CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 111 NOTE 6 - LONG-TERM LIABILITIES executed totaling $25,184,972 with interest rates ranging from 1.92% to 3.16% and terms between five and ten years. Early in fiscal year 2019, the City reached the maximum amount available to borrow under this master lease which was $25 million. As a result, the City entered into a new agreement with BAPCC on December 6, 2018. This new master lease will expire at an aggregate of $65 million financed or December 31, 2021, whichever comes first. As of June 30, 2021, there have been nineteen lease schedules funded under the new master lease totaling $17,629,247 with interest rates ranging between 0.91% and 2.83%.
On October 14, 2019, the City entered into a new $134,076 lease purchase agreement with AT&T Capital Services, Inc. at a rate of 3.87%. The funds were used to update communication equipment on fire vehicles.
On February 21, 2020, the City entered into a new $5.6 million lease purchase agreement with Alliance Funding Solution, Inc., at a rate of 2.95%. The funds were used to install solar equipment and other energy efficient equipment at both City Hall and the City's Municipal Service Center.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 112 NOTE 6 - LONG-TERM LIABILITIES The following table lists the City’s Capital Lease Obligations by lender as of June 30, 2021 (in thousands):
Lender
Date of
Loan
Term
(Years) Purchased
Interest
Rate
Annual
(P&I Payment)
Community First National Bank 7/13/2015 10 2015 Smeal Engines on Spartan Metrostar Chassis (4) 2.92% $ 210 Community First National Bank 9/22/2015 10 2015 Smeal Engines on Metrostar (3) & Aerial on Gladiator (1) 2.69% 340 Community First National Bank 2/22/2016 10 2012 Smeal Engine & 2016 Water Tender on Kenworth 2.09% 157 Dell Financial Services 9/1/2018 5 Dell OptiPlex 5050SFF(36) & Latitude 3580 (6) 5.63% 10 Dell Financial Services 3/1/2020 4 Dell Latitude Laptops (3) 3.96% 1 Dell Financial Services 5/1/2020 4 Computers Various Models (55) 4.28% 14 Dell Financial Services 5/1/2020 3 Computers Various Models (85) 5.32% 37 Key Government Finance, Inc. 4/10/2019 5 City-Wide Date System 3.88% 1,462 Banc of America Public Capital Corp 4/10/2017 5 Fire Chevy Silverado Pickup 2.07% 10 Banc of America Public Capital Corp 5/2/2017 10 Fire Engines & Pumpers 2.52% 464 Banc of America Public Capital Corp 5/11/2017 5 Police Vehicles (84) 1.96% 692 Banc of America Public Capital Corp 11/20/2017 5 Police Vehicles (55) 2.14% 587 Banc of America Public Capital Corp 8/1/2017 5 Police Motorcycles (14) & Fire Vehicles (9) 1.92% 164 Banc of America Public Capital Corp 11/29/2017 5 DARM Ford F-150 Pickup Trucks (24) 2.14% 115 Banc of America Public Capital Corp 11/23/2017 7 Microwave Date & Radio Console Network 2.46% 783 Banc of America Public Capital Corp 2/2/2018 5 Police MAGEC Vehicles (4) 2.44% 28 Banc of America Public Capital Corp 4/24/2018 5 DARM Ford-150 Pickup Trucks (14) & Parks (4) 2.62% 95 Banc of America Public Capital Corp 6/26/2018 10 Fire Ladder Truck & Pumpers (3) 3.16% 371 Banc of America Public Capital Corp 7/2/2018 5 Police CIT Vehicles (5) 2.76% 56 Banc of America Public Capital Corp 7/17/2018 5 Parks Ford Transit Wagon (1) 2.74% 4 Banc of America Public Capital Corp 7/17/2018 5 Police MAGEC Vehicle (1) 2.74% 7 Banc of America Public Capital Corp 9/14/2018 5 Fire Light Duty Vehicles (5) 2.73% 34 Banc of America Public Capital Corp 9/28/2018 5 Parks John Deere Tractor (1) 2.75% 9 Banc of America Public Capital Corp 10/5/2018 5 Police Vehicles (50) 2.84% 540 Banc of America Public Capital Corp 10/11/2018 5 Police Motorcycles (10) 2.86% 67 Banc of America Public Capital Corp 11/2/2018 5 DARM Ford-150 Pickup Trucks (27) 2.91% 147 Banc of America Public Capital Corp 11/9/2018 5 Police Undercover Vehicles (33) 2.90% 193 Banc of America Public Capital Corp 3/20/2019 5 Police SRO Vehicles (16) & Undercover (2) 2.73% 204 Banc of America Public Capital Corp 4/2/2019 5 Police F-150 Super Crew Pickup Trucks (15) 2.72% 118 Banc of America Public Capital Corp 5/29/2019 10 Fire Pumper Trucks (3) 2.83% 239 Banc of America Public Capital Corp 6/6/2019 5 Police Undercover Vehicles (10) 2.43% 109 Banc of America Public Capital Corp 8/30/2019 5 2019 Police Motorcycles (10) 1.90 % 75 Banc of America Public Capital Corp 11/12/2019 5 2020 Fire Ford Escapes (4), Ford F-250's (2) 1.95 % 60 Banc of America Public Capital Corp 2/11/2020 5 2020 Police U.C. Vehicles (28) 1.97 % 197 Banc of America Public Capital Corp 4/10/2020 5 2020 Police Vehicles (30) 1.11 % 359 Banc of America Public Capital Corp 4/21/2020 5 2020 Police U.C. Vehicles (3) 1.09 % 26 Banc of America Public Capital Corp 5/4/2020 5 2020 Fire Ford F-350 (1) & Ford Interceptor (1) 1.03 % 31 Banc of America Public Capital Corp 5/15/2020 10 2020 Fire Engines (4) 1.34 % 311 AT&T Capital Services, Inc. 10/14/2019 5 Cradlepoint System 3.87 % 33 Alliance Funding Solutions, Inc. 2/21/2020 15 Energy Efficient Equipment and Solar PPA (City Hall & MSC) 2.95 % 417 Banc of America Public Capital Corp 8/17/2020 10 Type III Fire Engines (2) 1.26% 82 Banc of America Public Capital Corp 11/19/2020 5 PARCS Ford Transit Van (1) 0.92% 8 Banc of America Public Capital Corp 11/19/2020 5 Freightliner Street Sweepers (2) 0.92% 163 Banc of America Public Capital Corp 1/19/2021 5 Fire Ford F-2150 (1) 0.91% 21 Banc of America Public Capital Corp 2/19/2021 5 Fire Squad Vehicle (1) 0.92% 29 Banc of America Public Capital Corp 3/25/2021 5 IPS Parking Meters 1.03% 413 Banc of America Public Capital Corp 6/9/2021 10 Fire Engines (2) & Truck (1) 1.73% 319 Banc of America Public Capital Corp 6/18/2021 5 Fire Light Duty Vehicle (3) 1.06% 60 Total $ 9,871
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 113 NOTE 6 - LONG-TERM LIABILITIES Capital Lease Debt service requirements are presented below (in thousands). Interest rates range from 0.91% to 5.63%.
Year Ended Governmental Activities
June 30 Principal Interest
2022 $ 8,859 $ 898
2023 8,520 727
2024 7,624 507
2025 4,421 343
2026 3,034 258
2027-2031 6,844 624
2032-2036 1,851 127
Total $ 41,153 $ 3,484
I. General Fund Short-Term Borrowing Obligations
The City did not issue any short-term debt during fiscal year 2021 and did not have any short-term debt outstanding during the fiscal year.
J. Unused Lines of Credit
The following table lists the City's unused lines of credit as of June 30, 2021 (in thousands):
Line of Credit Contract Amount Used Unused
CA State Water Resources Control Board
Drinking Water State Revolving Fund (1010007-28C) $ 195,489 $ 177,894 $ 17,595 Drinking Water State Revolving Fund (1010007-29C) 26,520 21,380 5,140 Drinking Water State Revolving Fund (1010007-30C) 75,900 67,437 8,463 Drinking Water State Revolving Fund (1010007-31C) 65,876 57,606 8,270 Banc of America Public Capital Corporation
Police Vehicle Leases 4,653 4,474 179
Fire Vehicle Lease 583 244 339
Microwave Date & Radio Console Network Lease 5,018 4,626 392 Parking Meter Project Lease 2,006 — 2,006
Key Government Finance, Inc
Citywide Data System 9,500 9,061 439
Alliance Funding Solutions, Inc.
Energy Efficient Equipment & Solar 5,555 4,097 1,458
Total $ 391,100 $ 346,819 $ 44,281
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 114 NOTE 6 - LONG-TERM LIABILITIES K. Debt Collateral
The following table lists the City's assets that are pledged as collateral for various City debts:
Debt Asset Pledged Expiration Date
JPFA Lease Revenue Bonds
1998 B Exhibit Hall Expansion Project Fresno Convention Center, 848 M. Street September 1, 2028 2001 A&B Stadium Project Fire Station #19, 2187 W. Belmont Ave June 1, 2031 Saroyan Theater, 730 M. Street June 1, 2031
2004 A,B,C Various Capital Projects Convention Center Parking Garage, Inyo & O Streets October 1, 2034 Fire Station #15, 5630 E. Park Circle October 1, 2024
Fire Station #17, 10512 N. Maple Ave October 1, 2024
2008 F Convention Center Fresno City Hall, 2600 Fresno Street April 1, 2046 2017 A Various Refunding Bond Fire Station #16, 2510 N. Polk Ave April 1, 2039 Fresno Memorial Auditorium, 2425 Fresno Street April 1, 2039 Fresno Municipal Center, 1325 El Dorado Street April 1, 2039 Parking Garage #4, 1919 Tulare Street April 1, 2039
Parking Garage #8, 1077 Van Ness Ave April 1, 2024
Police Regional Training Center, 6375 W. Central Ave April 1, 2039 Selland Arena, 700 M Street April 1, 2024
Chukchansi Park, 1800 Tulare Street April 1, 2031
Valdez Hall, 702 M Street April 1, 2039
Southern Portion of Woodward Park, 7775 N. Friant Road April 1, 2024 2020 A Animal Services Center Fresno City Hall, 2600 Fresno St. April 1, 2046 California Infrastructure & Development Bank
Roeding Business Park Loan City Hall Annex, 2326 Fresno Street August 1, 2033 U.S. Department of Housing and Urban
Development
Neighborhood Streets & Parks Loan Al Radka Park, 5897 E. Belmont Ave August 1, 2022 Jaswant Singh Khalra Park, 3861 W. Clinton Ave August 1, 2022 Todd Beamer Park, 1890 E. Plymouth Way August 1, 2022
Romain Playground, 745 N. First Ave August 1, 2022
L. Significant Events of Default, Termination and Subjective Acceleration Clauses The City’s debt agreements contain the following terms regarding significant Events of Default, Termination and Subjective Acceleration Clauses:
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 115 NOTE 6 - LONG-TERM LIABILITIES Bonds
For all City bonds, an Event of Default is generally classified as one or more of the following (1) nonpayment or late payment of principal and/or interest due on the bonds, (2) failure to be in compliance with debt covenants and agreements, and (3) the City filing for bankruptcy. If an Event of Default occurs, the majority owners of the bonds (not less than 51%) may declare the principal amount of all bonds outstanding and the interest accrued on them to be due and payable immediately. This applies to all City bonds except for the Series 2003 Tax Allocation Bonds. Only 25% of bond owners are required to declare the bonds due and payable immediately.
The City’s bond agreements do not contain Subjective Acceleration Clauses.
Notes & Loans
For City loans associated with the construction of Water Supply Disinfection Buildings, improvements to the Enterprise and Jefferson Canals, and the City’s Water Meter Project, an Event of Default is generally classified as one or more of the following: (1) nonpayment of any installment when due, (2) failure to make any remittances required by the agreement, (3) substantial breach to the agreement, (4) making any false warranty, representation, or statement with respect to the agreement, and (5) loss, theft or damages to any collateral given as security under the agreement. In an Event of Default, the State of California may do any or all of the following: (1) declare the City’s obligations due and payable immediately, (2) terminate any obligation to make further cash disbursements to the City, and (3) exercise all rights and remedies available to a secured creditor after default.
For City loans associated with the Southeast Surface Water Treatment Facility, the Regional Transmission Mains, the Enterprise Canal Raw Water Pipeline, the Kings River Pipeline, the Southwest Quadrant Recycled Water Distribution System, and the Tertiary Treatment Facility, the agreements can be terminated by the State Water Resources Control Board (SWRCB) if the City violates any material provision of the agreement. Some examples of violations would be if the City fails to notify the SWRCB of (1) principal and interest payment delinquencies, (2) unscheduled draws on debt service reserves, (3) bankruptcy or insolvency of the City. If a termination event occurs, the City can be demanded by the SWRCB to immediately repay an amount equal to the funds disbursed to them plus accrued interest and penalties.
For City loans associated with HUD Section 108, an Event of Default under these agreements is generally classified as one or more of the following: (1) failure to pay an installment of principal or interest due, (2) failure to properly comply with any covenant or condition of the agreement, and (3) failure to comply substantially with Title I of The Housing and Community Development Act of 1974.
In an Event of Default, the Department of Housing and Urban Development Secretary may do any or all of the following: (1) use funds or security pledged under the agreement to (a) continue to make payments due on the note, (b) make an acceleration payment of the principal amount subject to Optional Redemption, (c) pay any interest due for late payment, or (d) pay any other expense incurred by the Secretary as a result of the City’s default; (2) withhold the grants not yet disbursed; (3) direct the City’s financial institution to refuse to honor any draws on the Guaranteed Loan Funds Account or the Loan Repayment Account by the City; (4) accelerate the note amount subject to Optional Redemption, and (5) exercise any other remedies available by law including recovery of Guaranteed Loan Funds or reimburse any expense incurred as a result of City’s default.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 116 NOTE 6 - LONG-TERM LIABILITIES For the City loan associated with Roeding Business Park, an Event of Default under this agreement is classified as one or more of the following: (1) failure to pay principal and interest on the loan, (2) the occurrence of an event of default with any parity debt or subordinate debt which causes all principal of parity or subordinate debt to become due and payable immediately, (3) failure to comply with any of the covenants or conditions of the agreement, (4) filing for bankruptcy, (5) any false representation by the City, and (6) failure to pay amounts due under any other City debt if unpaid amount shall exceed $50,000. In an Event of Default, the California Infrastructure Bank may (1) declare the principal of the loan and the accrued interest on all unpaid balances to be due and payable immediately and (2) exercise any other remedies available by law.
The City’s note and loan agreements do not contain Subjective Acceleration Clauses.
Capital Leases
For all City leases associated with Banc of America Public Capital Corp (BAPCC), an Event of Default is classified as one or more of the following: (1) failure to pay in full the rental payment due, (2) failure to comply with any covenant or agreement of the lease, (3) filing for bankruptcy, (4) any warranty, representation or statement made by the City to be found materially incorrect, (5) any default occurring under any other debt agreement the City has, and (6) the City selling, leasing, or encumbering any of the equipment under the lease. In an Event of Default, BAPCC may do any or all of the following: (1) immediately terminate the lease and repossess the equipment thereunder and (2) exercise any other remedies available by law.
For the City lease associated with Key Government Finance, Inc. an Event of Default is classified as one or more of the following: (1) failure to pay any rental payment, (2) failure to observe and perform any covenant or condition under the agreement, (3) any warranty, representation or statement made by the City to be found materially incorrect, and (4) filing for bankruptcy by the City. In an Event of Default, Key Government Finance, Inc. may do any or all of the following: (1) declare all rental payments and other amounts payable to the end of the then current budget year to be due, (2) retake possession of the property under the lease, (3) instruct the escrow agent to release all proceeds and any earnings thereon to Key Government Finance, Inc. and (4) take any action that is permitted by law to protect its rights under the agreement.
For the City's lease associated with Alliance Funding Solutions, Inc., an Event of Default is classified as one or more of the following: (1) failure to make rental payments when due, (2) failure to maintain insurance on lease property, (3) failure to perform or observe any obligations, covenants or conditions under the lease, (4) filing for bankruptcy by the City, and (5) any warranty, representation or statement made by the City to be found materially incorrect. In an Event of Default, lessor may do any or all of the following: (1) require the City to pay all amounts currently due and all payments remaining due during the fiscal year in which default occurs, (2) exercise any other remedies available under the law, (3) take possession of the equipment and sell or lease it to pay for past due lease payments owed by the City, (4) terminate the lease, and (5) terminate the escrow fund and apply any remaining amount to the balance owed by the City.
The City’s capital lease agreements do not contain Subjective Acceleration Clauses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 117 NOTE 6 - LONG-TERM LIABILITIES Note 7. Interfund Activity
A. Due to/from Other Funds
Due to/from Other Funds represents short-term borrowings resulting from a fund’s temporary need for additional cash. Primarily, these amounts have been recorded when timing differences between when the services are provided and when they are paid for/reimbursed causes the funds to temporarily overdraw their share of pooled cash. These balances are generally expected to be repaid within the next few months and not longer than a 12-month fiscal operating cycle.
The composition of interfund balances as of June 30, 2021, is as follows (in thousands):
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 2,048
Nonmajor Enterprise Funds 470
Internal Service Funds 3,688
6,206
Grants Special Revenue Fund Internal Service Funds 1,533 Nonmajor Governmental Funds Internal Service Funds 1,814 Internal Service Funds General Fund 1,084
Grants Special Revenue Fund 1
Nonmajor Government Funds 593
Water System 319
Sewer System 294
Solid Waste Management 1,098
Transit 209
Airports 86
Nonmajor Enterprise Funds 265
Internal Service Funds 24
3,973
Total Due to/from Other Funds $ 13,526
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
118 NOTE 7 - INTERFUND ACTIVITY B. Advances
Advances represent long-term borrowing between funds.
Fire Headquarters
In fiscal year 2018, the General Fund borrowed $3.1 million from the Wastewater Operation Fund and the Sewer Stabilization Fund in order to provide sufficient funding for the purchase of the Fire Department's Headquarters Building. The governing resolution formalizing this advance was adopted by Council on May 10, 2018. The term of the advance is five years and the rate of interest is equal to the rate of interest paid on the City's pooled deposits and investments. As of the effective date of the agreement (June 25, 2018) the interest rate was 1.35%.
Fire Station No. 18
On November 14, 2019, a loan was executed between the City's UGM Area Wide Oversized Sewer fund, the City's UGM Wellhead Treatment Area 101S Fund, and the City of Fresno's Fire Station 18 Construction Fund, whereby funds were loaned to the Fire Station 18 Construction Fund to cover building costs of Fire Station 18. An amount not to exceed $2.4 million was borrowed from the UGM Area Wide Oversized Sewer Fund and $1.46 million was borrowed from the UGM Wellhead Treatment Area 101S Fund. The term of the loan will be not more than five (5) years and shall be repaid in full by July 31, 2024. Interest will accrue at a rate equal to the City's Pooled Investment Rate, which was
2.325% as of the effective date of the Loan Agreement. Each year, Fire Station 18 Construction Fund shall pay at least 1/5 th of the principal balance of the loan plus interest accrued to the payment date.
To the UGM Area Wide Oversized Sewer Fund, the annual principal payment is $480,000, while the annual payment to the UGM Wellhead Treatment Area 101S Fund is $291,450. As of June 30, 2021, $3.9 million of proceeds from this loan had been transferred to the Fire Station 18 Construction Fund and $0.7 million had been repaid.
Animal Shelter
On June 1, 2020, a loan was budgeted between the City's Water Enterprise Fund and the City of Fresno Animal Shelter Construction Fund, whereby funds were loaned to the Animal Shelter Construction Fund to cover building costs of a new Animal Shelter. An amount not to exceed $18.54 million was budgeted to be borrowed from the Water Enterprise Fund. The term of the loan will be not more than five (5) years. Interest will accrue at a rate equal to the City's Pooled Investment Rate, which was 2.042% as of March 2020. Each year, the Animal Shelter Construction Fund shall pay at least 1/5th of the principal balance of the loan plus interest accrued to the payment date. During fiscal year 2021, bond proceeds from the 2020-A Animal Services Facility Lease Revenue Bonds became available to fund construction. As of June 30, 2021, no proceeds from the Water Fund had been or are expected to be transferred to the Animal Shelter Construction Fund.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
119 NOTE 7 - INTERFUND ACTIVITY DPU Facility
On April 1, 2021, a loan was executed between the City's Water Division and the Solid Waste Division, whereby $3.7 million was loaned to the Solid Waste Division for the joint purchase of a facility to bring all Utilities services that can be merged into one facility. The term of the loan will be 5 years from the effective date of the loan, or April 1, 2026, and will accrue interest at a rate equal to the City's pooled rate, which was 1.78% as of the effective date of the loan agreement. The Solid Waste Division shall make principal payments in the amount of 1/10th of the loan amount and interest payments twice per year on October 1 and April 1 of each fiscal year. As of June 30, 2021, all $ 3.7 million of proceeds from this loan had been transferred to the Solid Waste Fund and $0 had been repaid.
Valley Inn
On June 29, 2021, a loan was executed between the City's Sewer Operations Fund and the General Fund, whereby $10 million was loaned to the General Fund for the purchase of a local motel for the purpose of housing the City's homeless population, as well as providing rehabilitation and property management services. The term of the loan will expire on June 30, 2022 and will accrue interest at a rate equal to the City's pooled rate, which was 1.78% as of the effective date of the loan agreement.
As of June 30, 2021, all $ 10 million of proceeds from this loan had been transferred to the General Fund and $0 had been repaid.
Redevelopment Agency
Advances over the years between the City and the former Redevelopment Agency (RDA) were made to provide funds for the purpose of eliminating blight and developing, constructing, rehabilitating, and revitalizing Fresno’s inner city neighborhoods, downtown, and industrial areas. The advances had all been secured by and payable from the incremental property tax revenues of the redeveloped properties. Interest rates varied between 5% and 9%, with payments on the advances and related interest based upon budgetary priority as approved by the former RDA.
In June 2011, all California RDAs were required to dissolve effective February 1, 2012. The law dissolving the RDAs called for the creation of a Successor Agency (SA) to wind down RDA business.
The initial dissolution law provided that the SA would pay “enforceable obligations” of the former RDA. However, the law initially excluded debt a former agency owed to the city that created it from the definition of enforceable obligations, unless the debt was created in the first two years following the agency’s creation or was debt that represented third party obligations. Subsequent legislation allowed limited, conditional repayment of loans by the SA to the community that created it.
When the RDA dissolution process began, City staff considered it to be premature to consider the debt owed by the former RDA to the City as being current. Thus, an allowance for doubtful accounts was created by the City, which at June 30, 2011, totaled $80.1 million. This amount, which was equal to the calculated amount of the debt, was reflective primarily of principal and interest accrued over the years on the advances. As payments on the debt have been received and legal decisions have been rendered, which further defined an "enforceable obligation", staff revisited that initial CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
120 NOTE 7 - INTERFUND ACTIVITY allowance for doubtful accounts amount and refined it. At the end of fiscal year 2021, the allowance for doubtful accounts stood at $6.4 million.
As the funds are received, 20% of any loan repayment received by the City must be deducted from the loan repayment amount and be transferred to the Low and Moderate Income Housing Fund. In fiscal year 2021, this amount totaled $ 0.8 million. The repayment is reflected on the ACFR on the Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds, under the Special Revenue Low and Moderate Income Housing Fund.
On June 23, 2016, the City Council approved a resolution requiring any amount of the annual repayments of RDA debt that are received and not related to Enterprise Funds related loans would go toward the rebuilding of the City’s Emergency Reserve Fund. Through June 30, 2021, the City had received $ 30.3 million in loan repayments from the SA. With the adoption of the fiscal year 2019 budget and the corresponding achievement of a 10% reserve, these repayments became a General Fund revenue source.
City of Fresno Advances to Former Redevelopment Agency (In Thousands) Principal Cumulative Interest Cumulative Total
Receivable Fund
Beginning
Balance
Advances/
Adjustments
Payments/
Write-offs
Ending
Balance
Beginning
Balance
Accruals/
Adjustments
Payments/
Write-offs
Ending
Balance
Total
Receivable
Allowance
for
Doubtful
Receivable
(Net of
Allowance)
General Fund:
General Fund $ 838 $ — $ — $ 838 $ 596 $ 25 $ — $ 621 $ 1,459 $ (1,459) $ — Parking Trust 150 — — 150 107 5 — 112 262 (262) — 988 — — 988 703 30 — 733 1,721 (1,721) —
Grants Special
Revenue Fund 6,655 — (1,885) 4,770 8,394 143 (2,264) 6,273 11,043 (2,141) 8,902 Nonmajor
Governmental Funds:
Gas Tax 1,150 — — 1,150 824 34 — 858 2,008 (2,008) — 1,150 — — 1,150 824 34 — 858 2,008 (2,008) —
Fresno Convention
Center 304 — — 304 210 9 — 219 523 (523) —
304 — — 304 210 9 — 219 523 (523) —
Total $ 9,097 $ — $ (1,885) $ 7,212 $ 10,131 $ 216 $ (2,264) $ 8,083 $ 15,295 $ (6,393) $ 8,902 Subsequent to fiscal year-end, the City received a reimbursement on loans made to the former RDA.
The amount received was $ 2.1 million, of which $ 1.7 million was paid to the City and $ 0.4 million was paid to the Housing Successor.
Redevelopment Agency - Housing Assets
The City became the “Housing Successor” of the former RDA’s Housing Assets. These assets were transferred to the City, who has sole legal authority to administer housing assets pursuant to the Redevelopment Dissolution Laws. This allows the City to complete projects under contract, liquidate surplus real estate and distribute proceeds to taxing entities, pursue repayment of RDA obligations to the City, and administer housing assets.
Other Advances
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
121 NOTE 7 - INTERFUND ACTIVITY The Sewer System sold land to the General Fund for the purpose of constructing a regional public safety training facility. Interest for the advance is equal to two percent (2%) above the City’s monthly Pooled Investment Rate. The first interest only payment was due July 31, 2008. Principal, at not less than 1/29 th of the original principal, and interest payments are due annually thereafter. The remaining advances are interest free and payable on demand. The amounts are not expected to be repaid within the next twelve-month fiscal operating cycle.
The composition of interfund balances (advances from/to other funds) as of June 30, 2021 , is as follows (in thousands):
Receivable Fund Payable Fund Amount
Grants Special Revenue Fund Fiduciary Funds $ 8,902
Nonmajor Governmental Funds Nonmajor Governmental Funds 62 Water System Nonmajor Governmental Funds 1,254
Solid Waste 3,711
4,965
Sewer System General Fund 11,497
NonMajor Governmental Funds 1,920
13,417
Total Advances $ 27,346
C. Transfers
Transfers represent subsidies by one fund to another in accordance with the budget and provide for various City programs and provide resources for the payment of debt service.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
122 NOTE 7 - INTERFUND ACTIVITY The following is a summary of interfund transfers for the fiscal year ended June 30, 2021 (in thousands):
Receiving Fund Paying Fund Amount
General Fund Grants Special Revenue Fund $ 71,681
Nonmajor Governmental Funds 236
Solid Waste Management 708
Transit 597
Internal Service Funds 1,765
74,987
Grants Special Revenue Fund General Fund 34
Nonmajor Governmental Funds 46
80 Nonmajor Governmental Funds General Fund 25,840
Grants Special Revenue Fund 1,166
Nonmajor Governmental Funds 11,379
Water System 383
Sewer System 353
Solid Waste Management 328
Transit 867
Airports 231
Nonmajor Enterprise Funds 123
Internal Service Funds 960
41,630
Water System Grants Special Revenue Fund 165
Sewer System Grants Special Revenue Fund 165
Transit Grants Special Revenue Fund 24
Solid Waste Management General Fund 703
Grants Special Revenue Fund 208
Nonmajor Enterprise Funds 959
1,870
Airports Grants Special Revenue Fund 46
Fresno Convention Center General Fund 6,427
Stadium General Fund 3,171
Nonmajor Enterprise Funds Grants Special Revenue Fund 62 Internal Service Funds 685
747
Internal Service Funds General Fund 783
Grants Special Revenue Fund 6,719
Internal Service Funds 16
7,518
Total Transfers $ 136,830
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
123 NOTE 7 - INTERFUND ACTIVITY The General Fund transferred $ 25.8 million to Nonmajor Governmental Funds to provide support for debt service payments and capital projects; $ 6.4 million to the Convention Center for debt service as well as general operating support; $ 0.8 million to Internal Service Funds for provided services; $ 0.7 million to Solid Waste for transverse charges and $ 3.2 million to the Stadium Fund for debt service payments.
The Grants Special Revenue Fund transferred $68.3 million to the General Fund, $0.1 million to Nonmajor Governmental Funds, and $7.4 million to Proprietary Funds for Coronavirus Aid Relief, and Economic Security (CARES) Act eligible expenses.
Nonmajor Governmental Funds transferred $11.7 million for debt service and miscellaneous purposes.
Internal Service Funds transferred $ 1.0 million to Nonmajor Governmental Funds for debt service payments. Enterprise Funds transferred $2.3 million to Nonmajor Governmental Funds for debt service payments.
D. Recap of Interfund Activity
The following schedule recaps Interfund Activity at June 30, 2021 (in thousands):
Due from
Other
Funds
Due to
Other
Funds
Advances
Receivable
from Other
Funds
Advances
Payable to
Other
Funds
Transfers
In
Transfers
Out
Governmental Funds:
General Fund $ 6,206 $ 1,084 $ — $ 11,497 $ 74,987 $ 36,958 Grants Special Revenue Fund 1,533 1 8,902 — 80 80,236 Nonmajor Governmental Funds 1,814 2,641 62 3,236 41,630 11,661 Total Governmental Funds 9,553 3,726 8,964 14,733 116,697 128,855 Proprietary Funds:
Water System — 319 4,965 — 165 383
Sewer System — 294 13,417 — 165 353
Solid Waste Management — 1,098 — 3,711 1,870 1,036 Transit — 209 — — 24 1,464
Airports — 86 — — 46 231
Fresno Convention Center — — — — 6,427 —
Stadium — — — — 3,171 —
Nonmajor Enterprise Funds — 735 — — 747 1,082
Internal Service Funds 3,973 7,059 — — 7,518 3,426 Total Proprietary Funds 3,973 9,800 18,382 3,711 20,133 7,975 Fiduciary Funds:
Major Governmental Funds — — — 8,902 — —
Total Fiduciary Funds — — — 8,902 — —
Total $ 13,526 $ 13,526 $ 27,346 $ 27,346 $ 136,830 $ 136,830 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
124 NOTE 7 - INTERFUND ACTIVITY Note 8. Defeasances
Current Year Defeasances
On December 10, 2020, the City defeased the remaining $27,635,000 on the Series 2010 A-1 Water System Revenue bonds. The majority of the funding for the defeasance came directly from City funds with the remaining amount coming from the bonds' reserve balance and interest earnings.
In September 2020, the City funded an irrevocable escrow account with $6,387,329 in order to prepay the City's Airport 2007, 2013 & 2019 bonds debt service for fiscal year 2021 only. The prepayment was done in order to ensure Airports stayed in compliance with its debt service coverage test in light of a decline in operating revenues resulting from the COVID pandemic. In order to mitigate the risk of technical default on their bonds, the City executed the prepayment. The Bonds were not defeased pursuant to the terms of their indentures. The $6.38 million prepayment was funded by $1.6 million in Passenger Facility Charges (PFC) from the PFC Debt Service Escrow Fund and $4.8 million from the Airports' unrestricted cash, as supplemented by $3.2 million of Airports' dedicated CARES allocation.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
125 NOTE 8 - DEFEASANCES Note 9. Risk Management Fund
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; business interruption; errors and omissions; automobile liability and accident claims; natural disasters; employee health benefit claim payments; and injuries to employees (workers’ compensation). With certain exceptions, it is the policy of the City to use a combination of self- insurance and purchased commercial insurance against property, liability, or workers’ compensation risks. The City believes it is more economical to manage its risks internally and set aside funds as needed for estimated current claim settlements and unfavorable judgments through annual appropriations and supplemental appropriations. The City maintains limited coverage for certain risks that cannot be eliminated. The Risk Management Division investigates and manages all liability claims and property losses, evaluates risk exposure and insurance needs, protects against contractual loss by reviewing/preparing insurance and indemnification portions of contractual documents, emphasizes ongoing operational loss control, and purchases all insurance coverage for the City.
The City maintains General Liability insurance, with limits of liability of $ 25 million per occurrence and $35 million aggregate in Excess Liability coverage. There is a $ 5 million self-insured retention (SIR).
Coverage is provided by the Safety National Insurance Company ($ 2 million /$4 million ) or Safety Specialty ($2 million), depending on the line of coverage, and thereafter Safety Specialty Insurance Company ($ 3 million /$6 million ), Allied Insurance Company ($ 10 million /$10 million ), Hallmark Insurance ($5 million / $ 5 million) and Gemini Insurance ($ 5 million/$5 million). The City has procured Automobile Physical Damage coverage through Hanover Insurance Company with a $ 10 million limit.
For this policy, the deductible is $ 50,000 for vehicles valued at less than $ 150,000, while the deductible is $ 100,000 for vehicles valued at $ 150,000 or more. The City carries Government Crime coverages with a $ 5 million limit secured through Zurich Insurance Company with a $ 50,000 deductible and Cyber liability coverage under Indian Harbor with a $ 500,000 SIR and a $5 million limit.
The City also maintains Airport Owners and Operators General Liability insurance and Aviation (Aircraft Liability), with limits of liability of $ 100 million. There is no deductible or SIR. Coverage is provided by Old Republic Insurance Company through Phoenix Aviation Managers (Texas), Inc.
Furthermore, the City maintains Property insurance and Boiler and Machinery insurance with Travelers Insurance, with total insured values of $2,075,298,620 and limits of liability of $500,000,000.
There is a $ 100,000 deductible for most losses. Flood losses have a $ 250,000 deductible. Property insurance does not cover losses due to seismic events. Finally, the City maintains Aviation (Aircraft Hull) insurance for two helicopters, with limits of liability of $ 50 million . There is a 1.0% of insured value each claim, subject to a maximum of $ 15,000, rotors in-motion deductible and $ 0 rotors not in- motion deductible of each helicopter. Coverage is provided by Old Republic Insurance Company through Phoenix Aviation Managers (Texas), Inc.
The City’s Workers’ Compensation Program consists of $ 2 million SIR, with purchased excess insurance layers up to the statutory limits. Settled claims have not exceeded the SIR in any of the last five fiscal years. The claims liabilities and workers’ compensation liabilities reported on the Statement of Net Position have been actuarially determined and include an estimate of incurred but not reported losses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
126 NOTE 9 - RISK MANAGEMENT FUND The estimated liabilities of the Risk Management ISF as of June 30, 2021 are determined by the City based on recommendations from an independent actuarial evaluation. The liabilities are based on estimates of the ultimate cost of claims (including future claim adjustments expenses) that have been reported but not settled, and claims that have been incurred but not reported (IBNR). The claims liability of $ 185.7 million reported in the Risk Management Internal Service Fund at June 30, 2021 is based on the requirement that claims be reported if information prior to the issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated.
The recorded liabilities for each program at June 30, 2021 are as follows (in thousands):
Workers' Compensation * $ 134,950
Liability and Property Damage * 50,783
Total $ 185,733
* The liabilities for workers' compensation and general liability are presented at present value, using a discount rate of 3%.
Changes in the funds claims liability amount for the last two fiscal years are as follows (in thousands):
Fiscal Year
Ended June 30
Beginning of
Fiscal Year
Liability
Current Year Claims
and Changes in
Estimates
Claims
Payments
End of Fiscal
Year Liability
2020 $ 128,390 $ 43,995 $ 22,077 $ 150,308
2021 $ 150,308 59,722 24,297 185,733
See Note 10 (G) on page 148 for changes in funds claims liability related to Employees Healthcare Plan.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
127 NOTE 9 - RISK MANAGEMENT FUND Note 10. Employee Benefit Programs
A. Retirement Plans
The City sponsors two single-employer, contributory, defined benefit pension plans. The City of Fresno Employees Retirement System and the City of Fresno Fire and Police Retirement System (Systems) were established under Charter Section 910 and are governed by Article 5 Chapter 3 (Employees) and Articles 3 and 4 Chapter 3 (Fire and Police) of the City of Fresno Municipal Code, respectively. The Systems provide lifetime retirement, disability, and death benefits to its members.
The Systems are administered by their respective Retirement Boards (Boards) which operate in compliance with the City of Fresno Municipal Code, and also in accordance with the California Pension Protection Act of 1992. The Boards do not operate under the control of the City Council. Rather, the Boards have the sole and exclusive responsibility to administer the respective Systems in a manner that will assure prompt delivery of benefits and related services to the members and their beneficiaries.
Membership and Benefit Eligibility
All permanent full-time employees of the City, except sworn Fire and Police personnel, are eligible to participate in the Employees’ plan. The Fire and Police is one System with two tiers. Effective August 28, 2008, the City of Fresno added the Fire and Police Tier 2 for all full-time sworn Fire, Police and Airport safety personnel hired on or after that date (and closed the Fire and Police Tier 1 to new entrants). Employees become eligible for membership on their first day of full-time regular employment, and become fully vested after earning 5 years of service credit. Employees working in limited, interim, provisional, temporary, seasonal or part-time positions are not eligible to participate in the Systems. Participation is mandatory if an employee is eligible, except in the case of the City Manager, City Attorney, City Clerk, Department Heads and Council Assistants who may negotiate other retirement benefits if such an agreement is established by resolution of the Council as provided for in the Fresno Municipal Code (FMC) Section 5-318.
Total participants in each System were comprised of the following, as of June 30, 2021:
Employees Fire & Police Total
Active Members
Vested 1,319 845 2,164
Non-Vested 994 240 1,234
Total Active Members 2,313 1,085 3,398
Retirees and Beneficiaries of Deceased Retirees
Retirees, Currently Receiving Benefits 2,129 1,125 3,254 Inactive Vested Members 248 90 338
Total Retirees and Inactive Members 2,377 1,215 3,592 Grand Total 4,690 2,300 6,990
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 128 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Benefit Provisions
The retirement (pension) benefits that Employees members receive are based upon a combination of age at retirement, years of credited service, final average monthly salary, and the distribution option selected by the participant. For Fire and Police, the benefits are further based upon the tier and option selected by the participant. Members' contributions, including interest, are 100% vested at all times. Employer contributions do not become vested until completion of five years of credited service, and are not payable until the member attains the age of 55. Effective January 28, 2008, members may retire between ages 50-55 with an actuarially equivalent service retirement benefit.
For Fire and Police, the employer contributions do not become vested until completion of ten years of credited service under Tier 1 and five years of credited service under Tier 2. Those benefits are not payable until the member attains the age of 50 under both tiers. Contributions are made by the members and the employer at rates recommended by the Systems’ actuary and adopted by the Boards.
Member Retirement Benefits
Employee members are eligible for service retirement benefits upon completion of at least five years of service upon termination of service (if they have left their contributions and interest with the System) and are at least age 55. They are also eligible if their permanent termination from City service was caused by a layoff. In those cases, they can retire at age 50 at a reduced benefit. They may also be eligible for service retirement benefit if they have less than five years of service with the City, have established reciprocity with a prior employer, and are eligible to retire from that agency.
The service retirement monthly benefit calculated pursuant to the provisions of the Fresno Municipal Code is equal to 2% of final compensation times each of the first 25 years of accrued retirement service credit plus 1% of final compensation times any years of accrued retirement service credit in excess of 25 years, multiplied by the age factor at retirement age. Final average compensation consists of the highest average consecutive 36 months of earnable compensation calculated using the rate of pay in effect at the time of retirement.
Fire and Police members of Tier 1 are eligible to retire once they attain the age of 65 regardless of service, or at age 50 and have acquired ten or more years of retirement service credit. The Tier 1 monthly benefit for a member with at least 20 years of service who retires from active status is equal to 55% of final compensation plus 2% of final compensation for each year of service in excess of 20 years completed after age 50. For Tier 1, final average compensation consists of the final highest consecutive 36 months of compensation earnable calculated using the rate of pay actually earned by the member in effect at the time of retirement. Some members can elect to have their final compensation based on a rank average. Members of Tier 2 are eligible to retire once they attain the age of 65 regardless of service or at age 50 and have acquired 5 or more years of retirement service credit. The Tier 2 monthly benefit for a member who is age 55 or older is equal to 2.70% of final compensation times years of accrued retirement service credit. The maximum monthly retirement allowance is 75% of final compensation. Tier 2 final average compensation consists of the highest consecutive 36 months of compensation earnable before the date of retirement.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
129 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS The members of each System may elect an unmodified retirement allowance, or choose one of four optional retirement allowances. Each of the optional retirement allowances require a reduction in the unmodified retirement allowance in order to allow the members the ability to provide certain benefits to a surviving spouse, domestic partner, or named beneficiary having an insurable interest in the life of the member. For Employee members, the unmodified retirement allowance provides the highest monthly benefit and 50% continuance to an eligible surviving spouse or domestic partner.
For Fire and Police members, the unmodified retirement allowance also provides the highest monthly benefit and a 66 2/3% continuance to an eligible surviving spouse or domestic partner.
The Municipal Code provides that the Retirement staff must research the percentage change in the Consumer Price Index (CPI) (US city-average for urban wage earners and clerical workers - all items) and propose that percentage to the appropriate Boards as the cost-of-living adjustments (COLA) to be adopted for the following year. This procedure must be completed by the end of April of each year for implementation in July (employees) or January (public safety). The COLA is limited to a 5% maximum change per year (employee) or 3% maximum change (public safety). Any excess over the maximum change is “banked” for use in a year where the percent of CPI change is less than the maximum.
The Fire and Police Tier 1 COLA depends on the type of method chosen by the member at retirement.
If the member chose the Career Rank method, the COLA is a recalculation of his/her retirement based on the new salaries adopted for the current year. If the method chosen by the retiree is the final 3- year method, the COLA is based on the change in the weighted mean average compensation attached to all ranks in the department, with a cap of 5% per year. Any excess over the 5% is “banked” for use in years when the COLA calculated is less than 5%.
Each System also has a Deferred Retirement Option Program (DROP), which is an optional voluntary program that allows the member to have his or her retirement benefits deposited in a special account within the Systems while the member continues to work in his or her current position. It is a voluntary method of receiving a distribution of their retirement benefits; it is not an additional retirement benefit. Additional information on DROP may be found in the ACFR for each respective System.
Terminated Member Benefits
If a member terminates before earning five years of credited service, the member forfeits the right to receive his or her service retirement benefit and is entitled to withdraw refundable contributions made, together with accumulated interest. If the member enters a reciprocal retirement system within 180 days (6 months) of terminating employment with the City and elects to leave their accumulated contributions on deposit with the System, then the member will receive a deferred retirement allowance when eligible.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
130 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Death and Disability Benefits
Death benefits are based upon whether the death occurred before or after retirement. Disability benefits are based upon whether the member has at least ten years of credited service, over or under age 55 and whether the permanent incapacity is found to be service or non-service connected.
Basis of Accounting
The Systems’ financial statements are prepared using the accrual basis of accounting and in accordance with generally accepted accounting principles in the United States of America (GAAP), under which revenues are recognized when earned and deductions are recorded when the liability is incurred. Securities lending transactions are accounted for in accordance with GASB Statement No. 28, Accounting and Financial Reporting for Securities Lending Transactions.
Valuation of Investments
For financial reporting purposes, the Systems’ investments are reported at fair value. Fair value for investments of publicly traded securities is based upon closing sales prices reported on recognized securities exchanges on the last business day of the period or, for listed securities having no sales reported and for unlisted securities, based upon last reported bid prices. All purchases and sales of securities are accounted for on a trade date basis. Dividends declared but not received are accrued on the ex-dividend date. Short-term investments are reported at cost, which approximates fair value.
Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Investments in both bonds and mortgage backed pass-through certificates are carried at fair value. Cost values are derived from Master Custodial Transaction Records. The fair value of real estate investments is based on independent appraisals. Investments that do not have an established market are reported at estimated fair values.
For asset/liability calculation purposes and for actuarial purposes, asset valuation is based on market value of assets less unrecognized returns from each of the last five years. Unrecognized returns are equal to the difference between the actual market return and the expected return on a market value basis and are recognized over a five-year period. The Actuarial Value of Assets is reduced by the value of the non-valuation reserves.
Rate of Return
For the fiscal year ended June 30, 2021 , the annual money-weighted rate of return on pension plan investments, net of investment expense was 30.43%, for the Employees and Fire and Police. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
131 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Reporting
The following data is for employer reporting as required by GASB Statement No. 68 as of June 30, 2021. The results used in preparing the GASB Statement No. 68 report are comparable to those used in preparing the GASB Statement No. 67 report for the plan based on a reporting date and measurement date as of June 30, 2020. The valuation is based upon:
• The benefit provisions of the Systems as administered by the Boards; • The characteristics of covered active members, terminated vested members, and retired members and beneficiaries as of June 30, 2020;
• The assets of each Plan as of June 30, 2020;
• Economic assumptions regarding future salary increases and investment earnings; and • Other actuarial assumptions, regarding employee termination, retirement, death, etc.
The Total Pension Liability (TPL) and the Plans’ Fiduciary Net Positions include liabilities and assets held for DROP, Post-Retirement Supplemental Benefits (PRSB) and City Surplus reserves. The Net Pension Liability (NPL) is equal to the difference between the TPL and the each Plan’s Net Position.
Each Plan’s Fiduciary Net Position is equal to the market value of assets and, therefore, the NPL measure is very similar to an Unfunded/(Prefunded) Actuarial Accrued Liability calculated on a market value basis. The NPL was measured as of June 30, 2020 and determined from the actuarial valuations as of June 30, 2020 . The Plans’ Fiduciary Net Positions (Plan Assets) were valued as of the measurement dates. Consistent with the provisions of GASB Statement No. 68, the assets and liabilities measured as of June 30, 2020 were not adjusted or rolled forward to the June 30, 2021 reporting date. The discount rates used for each Plan to determine the TPL and NPL as of June 30, 2020 was 7.00%, following the same assumptions used by the Retirement Systems in the funding valuations as of the same dates.
Funding Policy
The City contributes to the retirement plans based upon actuarially determined contribution rates adopted by the Boards. Employer contribution rates are adopted annually based upon recommendations received from the Retirement Systems' actuary after the completion of the annual actuarial valuation.
For the Employees System, the average employer contribution rate as of June 30, 2021, for 2020-2021 (based on the June 30, 2019 valuation) was 13.03% of compensation. The average employee member contribution rate as of June 30, 2021 for 2020-2021 (based on the June 30, 2019 valuation) was 9.04% of compensation.
For the Fire and Police System, the average employer contribution rate as of June 30, 2021 , for 2020-2021 (based on the June 30, 2019 valuation) was 22.81% of compensation. The average employee member contribution rate as of June 30, 2021 for 2020-2021 (based on the June 30, 2019 valuation) was 8.89% of compensation.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
132 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS All active Fire and Police members are required to make contributions to the System. Employee contribution rates vary in the First Tier according to entry age. The Tier 1 average member contribution rate as of June 30, 2021 for 2020-2021 (based on the June 30, 2019 valuation) was 0.00% of compensation. Employee contribution rates in the Second Tier are established at 9% of pensionable base pay.
The aggregate employer contribution rate for the Fire and Police System as of June 30, 2021 for 2020-2021 (based on the June 30, 2019 valuation) was 22.82% of compensation.
Actuarial Funding Policy and Actuarial Cost Methodology for Funding Purposes The City currently funds, at a minimum, the amounts recommended by the actuary and approved by the Boards. These minimum contributions are recognized currently in each System’s statement of changes in fiduciary net position. Employees' contributions are funded and recognized currently through payroll deductions in amounts recommended by the actuary. Costs of administering the System are charged against System assets.
Funding Status and Method
The Employees System Board adopted a Comprehensive Actuarial Funding Policy on November 7, 2012. For the Employees Retirement System, this policy included a change in actuarial cost methodology from the Projected Unit Credit (PUC) method previously used for funding purposes to the Entry Age Normal (EAN) method.
On the same date, the Fire and Police Board adopted a Comprehensive Actuarial Funding Policy. For the Fire and Police Retirement System, this policy included a change in actuarial cost methodology from the aggregate EAN funding method to the individual EAN method. The Boards made the change due to the adoption of GASB Statement No. 67 in fiscal year 2014.
Funding Requirements and Policy Components
The Systems’ annual funding requirements are comprised of a payment of the Normal Cost and a payment on the Unfunded Actuarial Accrued Liability (UAAL), if applicable. The Normal Cost and the amount of the payment on UAAL are determined by three components of the respective Board’s funding policy: 1) Actuarial Cost Method - the techniques used to allocate the cost/liability of retirement benefits to a given period; 2) Asset Smoothing Method - the techniques that spread the recognition of investment gains or losses over a period of time for the purposes of determining the Actuarial Value of Assets used in the actuarial valuation process; and 3) Amortization Policy - the decisions on how, in terms of duration and pattern, to fund the difference between the UAAL and the Actuarial Value of Assets in a systematic manner.
As of June 30, 2021, the Systems did not have UAAL.
The Boards adopted an Amortization Policy, which sets forth the amortization procedures for funding any UAAL or amortization and allocation of any available Surplus in the Systems. A detailed CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
133 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS description of the policy can be found in the Notes to the Financial Statements for the Retirement Systems, which are located at http://www.cfrs-ca.org/Employee/Communications/Reports.asp for the Employees System or at http://www.cfrs-ca.org/Fire-Police/Communications/Reports.asp for the Fire and Police System.
The Systems use a 5-year smoothing of market gains and losses above and below the assumed actuarial rate of return to derive the actuarial value of assets. As of the fiscal year ended June 30, 2021, the actuarial valuation value of the Employees’ System assets was $ 1.380 billion with a funded percentage of 116.0% on a valuation value of assets, whereas the actuarial value of Fire and Police assets was $1.696 billion with a funded percentage of 121.6% on a valuation value of assets.
Contributions Required and Contributions Made
The employer’s required normal contributions to the Systems have two components: basic and COLA.
For fiscal year 2021, the City’s required normal contributions (basic and COLA) to the Systems were as follows (in thousands):
Normal Cost
Employees System
FY 2021
Employer Contributions $ 20,594
Prior Year Contribution (Surplus)/Shortfall (450)
Net Employer Contributions $ 20,144
Pensionable Payroll $ 154,031
Member Contributions $ 13,750
Employer Contribution Rate 13.37%
Employer and employee contributions represented 13.03% and 9.04% respectively, of the fiscal year 2021 covered payroll for the Employees System.
Normal Cost
Fire and Police System
(In Thousands)
FY 2021
Tier 1 Tier 2 Total
Employer Contributions $ 871 $ 28,897 $ 29,768
Prior Year Contribution (Surplus)/Shortfall (220) (3,233) (3,453) Net Employer Contributions $ 651 $ 25,664 $ 26,315
Pensionable Payroll $ 3,293 $ 112,049 $ 115,342
Member Contributions $ 195 $ 10,062 $ 10,257
Employer Contribution Rate 29.55% 25.79 %
Employer and employee contributions represented 22.81% and 8.89%, respectively, of the fiscal year 2021 covered payroll for the Fire and Police System.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
134 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Net Pension Asset
The net pension liability (asset) reported as of June 30, 2021 was measured as of June 30, 2020 , and determined based upon the total pension liability (on GASB Statement No. 68 basis) from actuarial valuations as of June 30, 2020.
The City’s total pension liability, plan fiduciary net position, and net pension liability (asset) for each System as of June 30, 2021 were as follows (in thousands):
Employees
System
Fire and Police
System
Total Pension Liability $ 1,337,308 $ 1,565,631
Plan Fiduciary Net Position (1,360,837) (1,635,300)
Net Pension Liability (Asset) $ (23,529) $ (69,669)
Plan Fiduciary Net Position as a percentage of the total pension liability 101.76% 104.45%
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
135 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Changes in Net Pension Liability (Asset)
The components of the net pension liability (asset) for each System as of June 30, 2021 and a measurement date of June 30, 2020 were as follows (in thousands):
Employees
System
Fire and Police
System
Total Pension Liability (Asset)
Beginning Balance $ 1,278,096 $ 1,504,129
Service Cost 28,762 37,619
Interest 89,222 105,570
Differences Between Expected & Actual Experience 5,748 260 Benefit Payments, Including Refunds (64,519) (67,202) Changes of Assumptions — (14,745)
Net Change in Total Pension Liability 59,213 61,502
Ending Balance $ 1,337,309 $ 1,565,631
Plan Fiduciary Net Position
Beginning Balance $ 1,379,415 $ 1,647,800
Contributions - Employer 16,554 22,324
Contributions - Employee 11,028 10,012
Net Investment Income 20,109 24,206
Benefit Payments (Including Refunds, PRSB) (64,519) (67,202) Administrative & Professional Expense (1,749) (1,839) Net Change in Plan Fiduciary Net Position (18,577) (12,499) Ending Balance 1,360,838 1,635,301
Net Pension Liability (Asset) $ (23,529) $ (69,670)
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
136 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Discount Rate and Sensitivity of the Net Pension Liability to Changes in the Discount Rate The discount rate used to measure the TPL was 7.00% and 7.00% as of June 30, 2020 and June 30, 2019, respectively. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the pension Plan Fiduciary Net Position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the TPL as of both June 30, 2020 and June 30, 2019.
The following presents the NPL of the Employees and Fire and Police Retirement Systems as of June 30, 2020. The Systems use the current discount rate to measure the TPL for the measurement date of June 30, 2020 , as well as what the NPL would be if it were calculated using a discount rate that is 1- percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:
NPL of Employees and Fire and Police Retirement Systems As of June 20, 2020
(In Thousands)
1% Decrease Current
Discount Rate 1% Increase
6.00% 7.00% 8.00%
Employees System $ 132,560 $ (23,529) $ (151,412)
Fire and Police System 146,017 (69,669) (242,897)
Long-Term Expected Real Rate of Return
The long-term expected rate of return on the Systems’ 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 net of inflation) are developed for each major asset class. This information is combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation and deducting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation, but before deducting investment expense, used in the derivation of the long-term expected rate of return assumption are summarized in the following table:
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
137 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Asset Class/Target Allocation/Long-Term Expected
Rate Return Table
As of June 30, 2021
Asset Class
Target Asset
Allocation
Weighted Average
Long-Term Expected
Rate of Return
(Arithmetic)
Large Cap U.S. Equity 15.8% 5.44%
Small Cap U.S. Equity 7.2% 6.18%
Developed International Equity 19.0% 6.54%
Emerging Market Equity 6.0% 8.73%
Private Equity 5.0% 9.27%
Domestic Fixed Income 10.0% 1.42%
High Yield Bonds 5.0% 3.64%
Private Debt/Direct Lending 8.0% 5.54%
Midstream Energy 5.0% 6.24%
Real Estate 15.0% 4.6%
Private Real Assets - Infrastructure/Land 4.0% 4.89%
Total 100.0%
Mortality Rates
For the Employees System, the mortality rates used in the latest actuarial valuation are based on Pub-2010 General Healthy Retiree Amount-Weighted Mortality Table (separate tables for males and females) times 105% for healthy members and beneficiaries, projected generationally with the two- dimensional mortality improvement scale MP-2018. For disabled members, the mortality rates used in the latest actuarial valuation are based on Pub-2010 Non-Safety Disabled Retiree Amount-Weighted Mortality Table (separate tables for males and females), projected generationally with the two- dimensional mortality improvement scale MP-2018.
For the Fire and Police System the mortality rates used in the latest actuarial valuation are based on Pub-2010 Safety Healthy Retiree Amount-Weighted Mortality Table (separate tables for males and females) for healthy members, projected generationally with the two-dimensional mortality improvement scale MP-2018. For Beneficiaries, Pub-2010 General Healthy Retiree Amount Weighted Mortality Table (separate tables for males and females) times 105%, projected generationally with the tw0-dimentional mortality improvement scale MP-2018. For disabled members, Pub-2010 Safety Disabled Retiree Amount-Weighted Mortality Table (separate tables for males and females), projected generationally with the two dimensional mortality improvement scale MP-2018. These mortality tables were adjusted to future years using the generational projection to reflect future mortality improvement between the measurement date and those years.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
138 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Actuarial Assumptions
The TPL as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2020 . The actuarial assumptions used in the valuation were based on the results of an experience study for the period from July 1, 2015 through June 30, 2018.
In particular, the following actuarial assumptions were applied to all periods included in the measurement:
Inflation 2.75%
Salary increases
3.75% to 11.25%, varying by service, including inflation (Employees).
4.00% to 12.75%, varying by service, including inflation (Fire and Police).
Investment rate of return 7.00%, net of pension plan investment expense, including inflation.
Other assumptions
See the Employees' Plan and the Fire and Police Plan June 30, 2021 Actuary Reports for the service retirement rates after they have been adjusted to treat DROP participation as service retirement.
Net Position Restricted for Pension Benefits
Net position restricted for pension benefits is segregated into Active Members Reserve (members’ accumulated contributions) and reserves established by the Boards for various benefit payments.
Reserves are established by the Systems from member and employer contributions and the accumulation of investment income after satisfying investment and administrative expenses.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the fiscal year ending June 30, 2021 , the City incurred a pension expense of $41.7 million for the employees Plan and $52.8 million for the Fire and Police Plan for a total pension expense of $94.5 million.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
139 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS As of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to the pensions as follows:
Pension Expense and Deferred Outflows and Inflows of Resources (in thousands) Employees Fire and Police
Components of Pension Expense System System
Service cost $ 28,762 $ 37,619
Interest on the total pension liability 89,222 105,570 Expensed portion of current-period difference between expected and actual experience in the Total Pension Liability 1,592 57 Actual member contributions (11,028) (10,012)
Projected earnings on plan investments (95,205) (114,061) Expensed portion of current-period differences between actual and projected earnings on plan investments 15,019 17,971
Expensed portion of current-period effects of Assumption Changes — (3,248) Administrative expense 1,749 1,839
Recognition of beginning of year deferred outflows of resources as pension expense 32,559 44,691 Recognition of beginning of year deferred inflows of resources as pension expense (20,941) (27,586) Pension Expense $ 41,729 $ 52,840
Deferred Outflows of Resources and Deferred Inflows of Resources Deferred Outflows of Resources
Contributions subsequent to Measurement Date $ 19,159 $ 24,533 Changes of assumptions or other outputs 17,518 33,976 Difference between expected and actual experience in the Total Pension Liability 4,156 4,092 Net difference between projected and actual earnings on pension plan investments 53,030 63,527 Deferred Outflows of Resources $ 93,863 $ 126,128
Deferred Inflows of Resources
Changes of assumptions — 11,497
Difference between expected and actual experience in the Total Pension Liability 953 4,159 Deferred Inflows of Resources $ 953 $ 15,656
Deferred outflows of resources and deferred inflows of resources related to pension will be recognized as follows:
2021 N/A N/A
2022 $ 11,381 $ 11,182
2023 25,963 28,705
2024 21,388 29,804
2025 15,019 16,248
Thereafter — —
Any differences between projected and actual investment earnings on pension plan investments are recognized over a period of five years beginning with the year in which they occur. Differences between expected and actual experiences are recognized over the average of the expected remaining service lives of all employees that are provided with pensions through the Retirement Systems determined as of June 30, 2019 (the beginning of the measurement period ending June 30, 2020) and is 3.61 years for the Employees System and 4.54 years for the Fire & Police System.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
140 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Administrative Expenses
The Fresno Municipal Code (FMC) provides that all administrative costs of the Systems shall be a charge against the assets of the Systems. Per the FMC, the Administrative expenses are a component of the City’s contribution calculation.
The Systems issue publicly available financial reports that include financial statements and required supplementary information for the Employees Retirement System and the Fire and Police Retirement System. The reports may be obtained by writing the City of Fresno Retirement Office, 2828 Fresno Street, Suite 201, Fresno, California 93721, or by visiting:
https://www.cfrs-ca.org/employee-retirement-system/ers-financial/ for the Employee System, or https://www.cfrs-ca.org/fire-and-police-retirement-system/financial/ for the Fire and Police System.
Successor Agency Retirement Plan
The Successor Agency participates in a public agency cost-sharing multiple-employer defined benefit pension plan (the Plan) administered by the California Public Employees' Retirement System (CalPERS). Employer contribution rates are determined on an annual basis by an actuary and are effective on the July 1 following notice of a change in the rate.
The Plan fiduciary net position disclosed in the Successor Agency’s accounting valuation may differ from the Plan assets reported in the Successor Agency’s funding actuarial valuation report due to CalPERS keeping various items included in its fiduciary net position which are excluded for rate setting purposes in the Successor Agency’s funding actuarial valuation. Differences may also result from timing of financial reporting by CalPERS and final reconciled reserves.
As of the beginning of the measurement period (July 1, 2020), the net pension liability for the Plan is $523,185. For the measurement period ended June 30, 2021 (the measurement date), the net pension liability for the Plan is $ 574,573 and the Successor Agency incurred pension expense of $89,184 for the Plan.
As of June 30, 2021 , the Successor Agency reports other amounts for the Plan as deferred outflows and deferred inflows of resources related to pensions as follows (in thousands):
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Contributions made after the measurement date $ 45 $ —
Difference between expected and actual experience — (30) Changes in assumptions — 4
Net difference between projected and actual earnings on pension plan investments 17 — Changes in employer's proportions 30 —
Difference between the employer's contributions and the employer's proportionate share of contributions — 56
Total $ 92 $ 30
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
141 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS For more detailed information related to the Successor Agency’s retirement plan, refer to the Successor Agency’s separate audited financial statements which can be obtained by contacting the Successor Agency at 2344 Tulare Street, Suite 200, Fresno, CA 92721.
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan in accordance with Internal Revenue Code (IRC) Section 457. The deferred compensation plan (the Plan), available to all permanent full- time and part-time employees and Council Members, permits deferral of a portion of the employee’s salary into a tax-deferred program. The deferred compensation is not available to employees or other beneficiaries for withdrawal until termination, retirement, death, or unforeseeable emergency, or loan program. Upon separation from employment with the City, an individual may roll over their deferred account into another IRS Allowable Plan or, upon receipt, the distribution will become taxable.
The Deferred Compensation Board contracted with Fidelity Management Trust Company (Fidelity) as the trustee and plan administrator. The City’s Retirement System Administration assists Fidelity in the administration of the Plan. In addition to the Retirement Office, City staff in the Payroll section of the Finance Department, the City Attorney’s Office, and Information Services Department all assist in the administration of the Plan. The City has no fiduciary accountability for the Plan. Accordingly, the Plan assets and related liabilities to Plan participants are not included in the basic financial statements.
C. Compensated Absences
Vacation pay, which may be accumulated up to 600 hours depending on an employee’s bargaining group and length of service, is payable upon termination. Sick leave, which may be accumulated up to 12 hours per month, has no maximum. If eligible, most bargaining units receive a portion of the value of their sick leave balance at termination in their Health Reimbursement Account (HRA).
Otherwise, employees do not receive any value from their sick leave balances at termination.
Annual leave, which may be accumulated up to 1,200 hours, depending upon bargaining unit and length of service, is payable upon termination or retirement. Holiday leave may be accumulated indefinitely depending upon the bargaining groups and is payable for active employees as well as at termination or retirement. Annual leave allows for the cashing out of the higher of 10% of the accumulated balance or 48 hours, once per fiscal year. Supplemental sick leave is awarded to unrepresented management, professionals and to white collar employees at the rate of 40 hours at the beginning of each fiscal year. The balance can only be used after other leave balances are exhausted, or for other specific reasons outlined in the various Memoranda of Understanding (MOU’s) or the current Salary Resolution. The balance is payable at termination/retirement or is accounted for as part of an HRA which is unfunded and expended on a pay-as-you-go basis.
Starting in fiscal year 2006, some bargaining units selected to account for some or all of their sick leave and supplemental sick leave balances as an HRA. The book value of these balances is accounted for (by employee) in off-line spreadsheets, administered by HealthComp, is given credit for calculated interest, and is used to pay health premiums for the employee, their spouse and CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
142 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS dependents until their individual balance is exhausted. The HRA is not held in a trust, but is funded on a pay-as-you-go-basis.
The portion of the City's obligation relating to employees' rights to receive compensation for leave balances attributable to services already rendered is accrued when incurred in the Government-Wide, Proprietary, and Fiduciary Fund Financial Statements. Compensated absences upon termination are funded through a cost allocation formula which is based upon a citywide history of payouts (approximately $2 million per year). Accruals are reviewed by bargaining unit and the $2 million base is allocated in proportion to each unit’s current liability for a contribution per unit cost. This unit cost is then converted to a cost per employee and becomes part of the budgeted employee service cost in each department’s annual base budget.
Accrued Employee Leave balances as of June 30, 2021, are as follows (in thousands):
Department/Activity
Total Accrued
Vacation,
Sick Leave, and HRA
Current
Portion
Governmental Activities:
General Fund $ 62,841 $ 9,303
Grants Special Revenue Fund 962 89
Special Gas Tax 873 78
Measure C 1,542 192
Community Services 402 69
Special Assessment 102 30
General Services 3,502 363
Risk Management 154 38
Total Governmental Activities $ 70,378 $ 10,162
Business-Type Activities:
Water System 2,281 290
Sewer System 2,139 321
Solid Waste Management 1,596 290
Transit 3,193 702
Airports 1,856 299
Convention Center 28 —
Community Sanitation 497 50
Parks and Recreation 6 1
Billing and Collection 1,933 132
Total Business-Type Activities $ 13,529 $ 2,085
Fiduciary Funds:
Private-Purpose Trust Fund 56 10
Total $ 83,963 $ 12,257
Accrued employee leave balances related to governmental activities are recorded in the Government- Wide Financial Statements under Long-Term Liabilities.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
143 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS D. Termination Benefits
During fiscal year 2021, there were no employees who received severance pay.
E. Health Benefit Plan
The City offers its employees participation in the Fresno City Employees Health and Welfare Trust Plan (Trust). The Trust offers a self-insured medical plan for full-time and permanent part-time employees and their dependents. The Trust also provides dental, vision, pharmacy, mental health, and chiropractic coverage.
There are two medical plan options available to employees. Employees have the opportunity, on an annual basis, to elect either a higher benefit level Preferred Provider Organization (PPO) option or a reduced benefit level PPO option. Employees electing to receive the higher benefit level option pay a percentage of the monthly premium through payroll deductions. Employees electing the lower benefit level pay nothing for their coverage.
The first option is a higher benefit level PPO plan which has a $200 individual annual deductible and a $600 family maximum annual deductible. Under this option, the plan pays 80% of covered charges and the employee is responsible for 20% of the covered charges. Once a covered member incurs $15,000 in covered charges, the plan then pays 100% until the end of the plan year.
The second option is a reduced benefit level PPO plan which has a $1,300 individual annual deductible with a $2,600 family maximum annual deductible. The benefit reduction amount is set by the Board of Trustees for the plan and depends on the amount of contributions received by the Trust on behalf of the employee.
The percentage of the premium the employee is required to pay to receive the higher benefit level is negotiated by each bargaining unit.
During fiscal year 2014, a number of units negotiated a 75% - 25% contribution split. For these units, the City contributes 75% of the premium and the employees, if they wish to have the higher benefit level PPO, contribute 25% of the premium. If they choose not to make the contribution, the medical benefits are reduced by 30%. This reduction results in the plan paying 56% of covered charges and the employee is responsible for 44% of covered charges.
Only one bargaining unit continues to have a different contribution amount than the balance of the Unions. For Fresno City Employees Association, Inc. (FCEA) employees hired after July 11, 2011, the City contributes 70% of the premium and the employees, if they wish to have the higher benefit level PPO, contribute 30% of the premium. If they choose not to make the contribution, the medical benefits are reduced by 35%. This reduction results in the plan paying 52% of covered charges and the employee is responsible for 48% of covered charges. Employees in the FCEA hired before July 11, 2011, continue to have an 80% - 20% contribution split as described above.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
144 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS City retirees are also eligible for participation in the plans by paying the full blended premium cost.
The City continues to assess the impact of the federal healthcare reform legislation on the City’s liabilities.
The Health and Welfare Trust Board approved the purchase of a $500,000 stop-loss insurance policy on May 11, 2016. The policy was purchased in fiscal year 2017. The purpose of the policy was to protect the Trust from having to pay any claim or series of claims associated with one case that totaled more than $500,000. In addition to the stop-loss insurance, the Health and Welfare Trust Board also approved a policy of setting aside a portion of the Health and Welfare Trust Fund's fund balance for the payment of catastrophic health claims.
F. Other Post-Employment Benefits
Plan Description
The City of Fresno Retirees Healthcare Plan is a single-employer defined benefit medical plan administered by HealthComp and funded through the City of Fresno Health and Welfare Trust. It is reported as an Internal Service Fund of the City and provides Other Post-Employment Benefits (OPEB) to eligible retirees and his/her dependents, spouse or domestic partner. The trust does not issue separate publicly available financial statements.
GASB Statement No. 75, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other than Pensions , requires governments to account for OPEB on an accrual basis of accounting, rather than on a pay-as-you-go basis. The effect is the recognition of an actuarially determined expense on the Statement of Activities when a future retiree earns their post- employment benefits, rather than when they use their post-employment benefits. The post- employment benefit liability is recognized on the Statement of Net Position over time.
Contributions
The City provides post-employment healthcare benefits for certain eligible retirees. OPEB includes the authorization for retirees to purchase health insurance through the plan at current employee rates. The establishment and amendment of benefit provisions are negotiated between the employee bargaining units and the City, and are recommended by the City Manager subject to the approval of the Mayor and the City Council. While participant retirees pay 100% of their premium costs, they are allowed to purchase insurance at blended premium rates. Thus, the City's contribution is deemed to be that portion of retiree claims costs over premiums required to be contributed by retirees. Currently, the City does not pre-fund retiree health benefits and instead provides for benefits on a pay-as-you-go basis.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
145 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Employees Covered
As of July 1, 2019, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefit payments 350 Inactive employees entitled to but not yet receiving benefit payments — Active employees 3,293
Total participants covered by OPEB Plan 3,643
Net OPEB Liability
The City's net OPEB liability of $152.6 million was measured as of June 30, 2020, and was determined by an actuarial valuation as of that date to determine the June 30, 2021 total OPEB liability.
Actuarial Assumptions and Other Inputs
The net OPEB liability was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Reporting Date June 30, 2021
Measurement Date June 30, 2020
Valuation Date July 1, 2019
Discount Rate 2.16%
Healthcare Cost Trend Rates:
Current Year Trend 0
Second Year Trend 7.00%
Decrement NA
Ultimate Trend 4.04%
Year Ultimate Trend is Reached 2089
Salary Increases 2.00%
Actuarial Cost Method Entry Age Normal (Percent of Salary) The discount rate was based on the index provided by Bond Buyer 20-Year General Obligation Index based on the 20 year AA municipal bond rate as of June 30, 2020.
Mortality rates were based on the SOA RP-2014 Total Dataset Mortality with Scale MP-2019 (Base Year 2006).
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
146 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The July 1, 2019 valuation was prepared using a discount rate of 2.16%. If the discount rate were 1% higher than what was used in this valuation, the Net OPEB Liability would decrease to $ 125.0 million or by (18.09)%. If the discount rate were 1% lower than was used in this valuation, the Net OPEB Liability would increase to $181.0 million, or by 18.58%. 1% Decrease Current
Discount Rate 1% Increase
1.16% 2.16% 3.16%
Net OPEB Liability
(in thousands) $ 180,957 $ 152,604 $ 125,005
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The July 1, 2019 valuation was prepared using an initial trend rate of 0.0%. If the trend rate were 1% higher than what was used in this valuation, the Net OPEB Liability would increase to $186.0 million or by (21.88)%. If the trend rate were 1% lower than was used in this valuation, the Net OPEB Liability would decrease to $122.3 million or by 19.84%.
1% Decrease
Current
Healthcare Cost
Trend Rates
1% Increase
3.65% /10.63% 0.0% 4.65% / 12.63%
Net OPEB Liability
(in thousands) $ 122,331 $ 152,604 $ 185,994
Changes in the Net OPEB Liability
The changes in the Net OPEB Liability for the City OPEB Plan are as follows:
Net OPEB Liability
Increase / (Decrease)
(in thousands)
Net OPEB Liability as of June 30, 2020 $ 148,672
Changes for the Year:
Service Cost 10,052
Interest 3,045
Assumption Changes (6,622)
Benefit Payments (2,543)
Net Changes 3,932
Net OPEB Liability as of June 30, 2021 $ 152,604
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
147 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources For the year ended June 30, 2021 , the City recognized an OPEB expense of $13.7 million. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources (in thousands):
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB Contributions Subsequent to the Measurement Date $ 2,911 $ — Changes of Assumptions 33,808 (18,760)
Difference Between Actual and Expected Experience 267 (6,220) Total $ 36,986 $ (24,980)
The $2.9 million reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows (in thousands):
Fiscal
Year
Deferred
Outflows/(Inflows)
of Resources
2022 $ 612
2023 612
2024 612
2025 612
2026 612
Thereafter 6,035
Total: $ 9,095
G. Healthcare Plan Claims Liability
The recorded liability for the Employees Healthcare Plan at June 30, 2021 for employee health benefit claim payments for direct provider care is $6.5 million.
Changes in the funds claims liability amount for the last two fiscal years are as follows (in thousands):
Fiscal Year
Ended
June 30
Beginning of
Fiscal Year
Liability
Current Year
Claims and
Changes in
Estimates
Claims
Payments
End of
Fiscal
Year
Liability
2020 $ 4,300 $ 49,446 $ 49,646 $ 4,100
2021 4,100 52,186 49,786 6,500
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
148 NOTE 10 - EMPLOYEE BENEFIT PROGRAMS Note 11. No-Commitment Debt
The City is not liable for repayment of any of the following bonds, and accordingly, they are not reflected in the accompanying basic financial statements.
A. Special District Debt
The City is not obligated in any manner for the Special District debt, but is acting as an agent for property owners in collecting the taxes/assessments, forwarding the collections to the trustee/paying agent, and initiating foreclosure proceedings, if appropriate. Special District debt payable to bond holders was $2.83 million at June 30, 2021, as compared to $3.05 million at June 30, 2020.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 149 NOTE 11 - NO-COMMITMENT DEBT Note 12. Commitments and Contingencies
A. Closure and Post-Closure Care Cost
The City continues to monitor a former landfill site as part of the Environmental Protection Agency's (EPA) Superfund program. Management estimates the remaining monitoring costs as of June 30, 2021 to be $12.2 million. A liability in this amount has been recorded in the Solid Waste Management Fund. It is anticipated that approximately $ 0.8 million in monitoring costs and landfill site closure costs will be paid in fiscal year 2022. The former landfill site has not received solid waste since 1987.
It was redesigned as part of a 350-acre “green” facility to integrate the former landfill site into a championship caliber sports complex/regional park. The estimated total remaining post-closure care costs are based on the equipment, facilities, and services required to monitor/maintain the closed landfill. The liability for post-closure care costs is an estimate and subject to change resulting from inflation, deflation, technology or changes in applicable laws.
Fees paid by utility users will be used to cover the remaining monitoring costs. A receivable totaling $11.2 million has been recorded in the Solid Waste Management Fund.
B. CVP Water Contract
The City’s 60,000 acre-foot water supply entitlement from the United States Bureau of Reclamation (USBR, or the Bureau) is equivalent to approximately 40% of the City’s annual water demand. This supply, derived from the Friant Dam on the San Joaquin River, is the primary resource for the operation of the City’s current and future surface water treatment facilities.
The City and the Bureau have what is known as a Repayment Contract. While most traditional federal Reclamation Law provisions continue to apply, the City receives some important benefits by utilizing the Repayment Contract, including:
1. Permanent water supply - The Repayment Contract provides for an ongoing, permanent annual supply of up to 60,000 acre-feet of water from the Friant Division of the CVP. No further periodic renewal negotiations are required.
2. Pricing benefits - Certain components of the Bureau water rate structure, such as tiered pricing, are eliminated.
3. Financing cost savings - Under the previous Bureau rate structure, the City paid certain financing costs and interest on the outstanding capital and operation and maintenance obligations that the Bureau attributed to the City. Under a Repayment Contract, those costs are not passed on to the City.
Because repayment contracts do not require periodic renewal, compliance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) need not be repeated. This obligation is amortized and included in the volumetric water rates the City pays the USBR. The present value of the City’s debt obligation to the Bureau has been fully capitalized in the CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 150 NOTE 12 - COMMITMENTS AND CONTINGENCIES Water Fund under the caption “Unamortized CVP Water Settlement”, and is being amortized against expected future revenues generated through water rates. The “Unamortized CVP Water Settlement” totaled $ 0.8 million on June 30, 2021 , while the related liability reported as “CVP Litigation Settlement” totaled $0.1 million on June 30, 2021.
C. Other Litigation
There are various other lawsuits and claims pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, management, after consultation with legal counsel, is of the opinion that a majority of these matters will not have a material adverse effect on the financial condition of the City at June 30, 2021.
D. Toxics Mitigation
Old Hammer Field
Contamination, primarily from the common solvent trichloroethylene (TCE), was discovered and identified in 1989 in soils and groundwater beneath property currently owned by the City. The site known as Old Hammer Field (OHF), a prior Army military base in the 1940’s, was the subject of investigation and cleanup efforts which had previously been jointly funded by the Boeing Company (Boeing), the U.S. Army Corps of Engineers and the City of Fresno. The area had been used for the repair, overhaul, maintenance, refurbishing and construction of aircraft during and after World War II. The California Department of Toxic Substances Control (DTSC) was the lead regulatory agency overseeing site cleanup.
After years of legal negotiations, a settlement agreement between the U.S. Army Corps of Engineers, the Boeing Company, and the City was reached. The settlement called for the Airports Department to be responsible, going forward, for 10% of the cleanup costs. The settlement also called for the U.S. Army Corps of Engineers and Boeing to make a joint one-time payment of $1,350,000 for past costs. This payment was made in fiscal year 2011.
The Court approved the settlement agreement which included the one-time payment noted above, covenants not to sue and an operating agreement for purposes of coordinating further efforts to implement the State-Approved Remedial Action Plan to obtain Site Closure. All parties agreed to bear their own costs and expenses, including attorney’s fees in the case.
A liability for future cleanup costs on the Old Hammer Field site is recorded on the fiscal year 2021 ACFR in the amount of $ 451,119. Total costs have been estimated to range between $10 and $20 million, with the City’s share of cleanup costs to be 10%. The cleanup time frame has also been estimated and is expected to continue for 20 to 40 years. Cleanup costs totaled $ 34,390 in fiscal year 2021.
The City will re-evaluate this accrual annually and make adjustments as necessary.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 151 NOTE 12 - COMMITMENTS AND CONTINGENCIES DBCP Groundwater Contamination
The occurrence of DBCP, an agricultural pesticide, in certain groundwater has been identified throughout the Fresno Metropolitan Area. At various City well sites, DBCP exceeds drinking water limits and is removed by Granular Activated Carbon (GAC) treatment. The City fronted the costs of clean up with respect to the known wells and reimbursed itself from a litigation settlement in an original amount of approximately $21 million. $10 million was stipulated to be used toward past costs, and $11 million was to be applied toward the installation of additional GAC treatment units, all of which have been completed. Subject to numerical limits, the settlement arrangement also provides for the City to be reimbursed for the capital costs of the installation of GAC treatments at wells exceeding maximum contaminant levels, with reimbursements ranging from $337,500 to $540,000 depending on the well site. Funding also is provided for the ongoing operation and maintenance cleanup costs of approximately $27,900 to $31,000 per contaminated well (depending on type), adjusted for inflation, with such payment obligations ending on June 26, 2035. The City is not responsible for “cleanup” in the context common to hazardous material remediation.
The City can elect to treat wells or simply shut them down. Future costs to clean up and monitor new discoveries of contamination at existing sites or additional sites that may be identified are eligible for reimbursement under the settlement agreement through June 26, 2035.
An obligating event as defined by GASB Statement No. 49 has not occurred during the fiscal year; therefore, no liability exists.
Pollution Remediation
Although the Successor Agency is generally not involved with operations that pose a high risk for environmental liabilities, properties acquired for redevelopment purposes could be contaminated or may contain hazardous substances, such as petroleum products, lead, and/or asbestos. The former RDA’s due diligence property acquisition policies required that the RDA obtain a Phase I Environmental Site Assessment (ESA) report on all properties to be acquired by the RDA to minimize or avoid potential environmental liabilities. If the Phase I ESA findings and conclusions indicate the need for further environmental investigation, a Phase II ESA is commissioned. In the event of an acquisition leading to demolition, the former RDA obtained a Phase I and/or Phase II report and, if necessary, remediated the property according to state and federal laws prior to demolition. In instances where hazardous substances or petroleum products were detected by the Phase II ESA, environmental remediation (cleanup) is subsequently planned and executed. The Phase II ESA and cleanup work are normally supervised and sanctioned by local environmental agencies such as the California Regional Water Quality Control Board (RWQCB). This agency accepts the completion of the cleanup work by issuing a “Case Closure” letter that officially declares the property free of hazardous substances or petroleum products.
During fiscal year 2016, the Successor Agency held one parcel subject to environmental investigation at 655 “G” Street - Chinatown. In February 2009, the City transferred title to four parcels in the Chinatown project area to the RDA. In October 1995, a Phase II ESA was completed for the four parcels. The parcel at 718 “F” Street and two parcels at 705 “G” Street were free of hazardous substances or petroleum products. The fourth parcel at 655 “G” Street was found to be in need of CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 152 NOTE 12 - COMMITMENTS AND CONTINGENCIES further assessment (Phase II ESA) because suspected leaking gasoline tanks had been removed from the site. The RWQCB advised the City that additional assessment was necessary to further evaluate impacted soils and groundwater and required a work plan outlining the assessment. Recently, the Successor Agency obtained an EPA grant to assess 655 “G” Street, as required by the RWQCB. The work plan and field work have been completed and test results have been received. Monitoring wells have been installed at the site and water samples are to be tested quarterly. RWQCB will review the results and advise if further action is needed. At this time, any potential costs cannot be estimated with any degree of certainty. Until such time as the costs can be estimated with more certainty, no liability will be accrued.
E. Measure Z, Zoo Accreditation, Fresno Chaffee Zoo Corporation In accordance with an agreement between the City and the Fresno Chaffee Zoo Corporation (FCZC), a California benefit corporation, a non-profit board operates the Chaffee Zoo (Zoo). The City and the FCZC also negotiated a lease and a financing arrangement.
The lease agreement, dated January 1, 2006, was negotiated for a 30-year period. There is also a 25- year renewal of the term if the Zoo Tax was reinstated after its initial 10-year term, or two additional 10-year renewal options if the tax was not renewed. On November 4, 2014, a new incarnation of Measure Z which extends the tax for another 10 years was passed triggering the 25-year lease renewal. The lease rate is at $1.00 per year.
The lease agreement sets forth the terms and conditions between the City and FCZC, with respect to the Zoo premises and any expansion that might occur in a designated expansion area. The City is responsible for all maintenance and operation costs in the expansion area, until such time as the FCZC takes possession of the expansion area by exercising its rights in accordance with lease provisions.
The City retained ownership of the land, buildings, structures, permanent fixtures, and improvements in existence at the commencement date of the lease, while the FCZC is the owner of all buildings, structures, and improvements constructed thereafter until the end of the lease term.
The Financing Agreement conveyed the Zoo animals and Zoo personal property to the FCZC, along with all obligations the City had with respect to the animals exhibited, housed or otherwise kept or cared for at the Zoo during the term of the lease. At the termination of the lease or the end of the lease term, should the City decide not to continue operations of the Zoo, the FCZC has the right to sell or dispose of the Zoo animals and keep the proceeds of any sale or disposition at its sole cost or expense. The FCZC also has the authority to acquire, sell or dispose of Zoo animals in the course of the lease so long as the compliment of animals at all times is similar in type and proportion to the Zoo animals on hand upon commencement of the lease.
The FCZC must maintain Association of Zoo & Aquariums (AZA) accreditation of the Chaffee Zoo.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 153 NOTE 12 - COMMITMENTS AND CONTINGENCIES F. Granite Park
In 2005, the City entered into a Contingent Debt Purchase Agreement guaranteeing a loan regarding a 20-acre sports-related complex under development and adjacent to office and commercial retail amenities, known as Granite Park.
On June 30, 2009, a formal demand was made on the City to purchase the Loan Package for a stipulated purchase price. On September 17, 2009, the City deposited $5,105,271 in a loan purchase escrow. The City utilized funds from its cash pool with the intention of ultimately issuing long-term bonds to finance the acquisition over 30 years.
The City proceeded to purchase the Granite Park property at a unified foreclosure sale and took title to and possession of Granite Park sports fields pursuant to a Trustee’s Deed recorded in Fresno County on March 16, 2010. The City paid $5,105,218 and holds the property for possible use, development and/or disposition.
The City entered into a 25-year ground lease and 10-year service contract with Central Valley Community Sports Foundation (CVCSF) on September 24, 2015. The ground lease calls for the CVCSF to make rent payments of $62,500/year, which are increased annually by 2.75%/year. The CVCSF is responsible for maintenance of Granite Park's sports-related complex, as well as the financing of various capital improvements. Under the service contract, the City pays the CVCSF $150,000/year to provide a variety of sports and recreational programming.
G. Operating Leases
The City has operating leases for certain buildings, parking areas, ponding basins, hanger space and storage areas which require the following minimum annual payments:
Governmental Activities (in thousands)
Fiscal Years Police Fire Public
Works
Other
Departments Total
2022 $ 522 $ 18 $ 156 $ 3,070 $ 3,766
2023 506 18 159 2,836 3,519
2024 514 18 — 2,827 3,359
2025 523 18 — 77 618
2026 548 18 — 78 644
2027-2031 375 — — 348 723
Total $ 2,988 $ 90 $ 315 $ 9,236 $ 12,629
Operating lease expense incurred for fiscal year 2021 was approximately $ 3.7 million for governmental activities.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 154 NOTE 12 - COMMITMENTS AND CONTINGENCIES Business-Type Activities (in thousands)
Fiscal Years Airports Water
Other
Departments Total
2022 $ 369 $ 537 $ 167 $ 1,073
2023 375 537 15 927
2024 381 537 15 933
2025 388 537 16 941
2026 — 537 16 553
2027-2031 — 2,686 — 2,686
2032-2036 — — — —
Total $ 1,513 $ 5,371 $ 229 $ 7,113
Operating lease expense incurred for fiscal year 2021 was approximately $ 1.0 million for Business- Type Activities.
The City has various other operating leases (both Governmental and Business-Type) that have either expired and are now functioning on a month-to-month basis, or were written on a month-to-month or some other basis, or which state no specified expiration date. The City also leases property to others outside of the City. All of these leases generally operate on a month-to-month basis. The combined current annual income from these leases total approximately $14.8 million.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 155 NOTE 12 - COMMITMENTS AND CONTINGENCIES H. Construction and Other Significant Commitments
At June 30, 2021 , the City had commitments for the following major construction projects (in thousands):
Project Title
Remaining
Construction
Committed
Governmental:
Slurry Seal - Various Locations $ 1,673
Overlay - Various Locations 4,005
Traffic Signals - Various Locations 12,822
UGM Fire Station #18 3,449
Animal Shelter 13,622
Total Governmental 35,571
Proprietary:
TCP Plan and Remediation 489
Odor Control - Headworks 770
Collection System Rehabilitation and Extensions 708
PTMISEA 931
South East Fresno Surface Water Treatment Facility 1,057 Lift Station Rehabilitation 1,317
South East Fresno Surface Water Treatment Facility 1,475 South East & South West Treatment Plant Transmission Pipelines 1,676 Water Well Construction & Rehabilitation 2,064
Extended Bus Routes- Fresno Area Transit 2,260
Regional Wastewater Reclamation Facility Renovations 2,949 Terminal Renovations & Expansion 4,006
Water Main Renewal & Extensions 6,803
TIRCP- South West Community Connector 7,925
FAT Parking Garage 14,298
Total Proprietary 48,728
Total Major Construction Projects $ 84,299
I. Discolored Water
In February 2016, the City undertook a broad investigation into reports of discolored water and the presence of lead in drinking water in certain homes located in Northeast Fresno. The City conducted the investigation with oversight from the State Water Resources Control Board - Division of Drinking Water (DDW), Fresno County Department of Public Health, and the U.S. Environmental Protection Agency (EPA). The investigation has included, for example, water quality sampling, soil sampling, pipe testing, field investigations and home inspections, consultations with national corrosion experts, multiple community meetings and presentations, and public distribution of information and education materials.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 156 NOTE 12 - COMMITMENTS AND CONTINGENCIES In early 2017, the EPA conducted a comprehensive review of the City and the State of California’s oversight of the City’s drinking water treatment and testing program. The EPA concluded that the City has historically complied with the regulatory action level for lead, and that the City’s water system has been optimized for corrosion control since 1996.
In September 2016 and May 2017, groups of residents filed two lawsuits against the City and other parties seeking damages for harm allegedly caused by the City’s water supply. Litigation is currently ongoing. The City will continue to vigorously defend itself in these matters.
The City continues to work with residents by regularly monitoring their water. For more information regarding the City’s continued efforts to resolve discolored water issues, please see https:// www.fresno.gov/publicutilities/water-quality-operations-testing/.
The City has spent $ 5,117,780 through June 30, 2021 to investigate and address the discolored water complaints. All of these costs have been and will continue to be recorded in the Water Fund.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 157 NOTE 12 - COMMITMENTS AND CONTINGENCIES Note 13. Securities Lending
The City does not engage in securities lending with any investment instruments that it holds. The City’s Retirement Systems are permitted under the City’s Municipal Code and Retirement Boards’ policies to enter into securities lending transactions. For a detailed description of the Retirement Systems’ security lending policies and the financial effect of such lending, please see the Retirement Systems’ ACFRS, which can be found at https://www.cfrs-ca.org/fire-and-police-retirement-system/ financial/ for the Fire and Police Retirement System and https://www.cfrs-ca.org/employee- retirement-system/ers-financial/ for the Employees Retirement System.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 158 NOTE 13 - SECURITIES LENDING Note 14. Other Information
Construction Retainage Escrow Accounts
The City enters into construction contracts with various outside third-party contractors with respect to major capital projects. As the construction progresses, progress payments are made to the contractors. Portions of the payments, called retention payments, are paid into an escrow account.
While these funds are earned by the contractors, generally 5% to 10% of the contract amount, they are not released out of the escrow account to the contractor until some agreed upon date, usually the completion of the job. These amounts are retained for a variety of reasons, as an incentive to complete the job in a timely manner, or as a fund for the benefit of suppliers and subcontractors. The City may not convert the funds in these escrow accounts for its use unless a breach of contract occurs. At June 30, 2021 , the City had made payments into various contract escrow accounts in the amount of $11.7 million.
COVID-Related Funding
The City has received a substantial amount of funding from the Federal and State government since the beginning of the COVID-19 pandemic to offset the pandemic’s health and economic impacts. The following are the major COVID-19 mitigation funding sources that have been awarded to/received by the City as of June 30, 2021
Coronavirus Aid, Relief, and Economic Security (CARES) Act – The City received $92.8 million in CARES funding in April 2020. As of June 30, 2021, 96.7% (or $89.7 million) of this funding has been expended.
Funding has been used for services such as expanded COVID testing and contact tracing for residents, food assistance, homeless transitional housing, small business assistance, and residential housing retention grants.
Transit CARES - The City’s Transportation Department (Transit) was awarded $32.5 million to assist in Fixed Route Operation, Handy Ride Operating Support, and bus purchases. This funding was intended to offset funding losses caused due to COVID-related shutdowns of service or ridership restrictions.
As of June 30, 2021, Transit had not received any of the awarded amount.
Airports CARES – The City’s airport was granted a total of $13 million in Airport CARES funds. Of this amount, $7.7 million was used in Fiscal Year 2021 for operating costs and debt payments (please see Note 8 on page 125). $5.2 million will be used in Fiscal Year 2022 to reimburse costs related to the Terminal Design Project.
American Rescue Plan Act (ARPA) – The City was awarded $170.8 million of ARPA funds in March 2021.
The City received $85.4 million in May 2021, and will receive the remaining $85.4 million in May 2022.
As of June 30, 2021, no funds have been expended as the City awaits the finalization of guidelines on the use of ARPA funds.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 159 NOTE 14 - OTHER INFORMATION Emergency Rental Assistance Program (ERAP) – The City was awarded $67.3 million in ERAP funding:
$35.7 million from the Federal government and $31.6 million from the State. As of June 30, 2021, the City had received $15.8 million of its awarded total. The program is designed to assist qualified residents in retaining housing and utilities by reimbursing landlords and utility providers for past due billings. As of June 30, 2021, the City had spent $7.0 million of its awarded amount, with $1.4 million paid directly to landlords and utility providers for delinquent rent and utilities.
Coronavirus Response and Relief Supplemental Appropriation Act (CRRSAA) - The City's Transit Department was awarded $5.6 million in CRRSAA funds. The funds are to be spent on capital projects, vehicle procurement, COVID-related expenses, and operating expenses. The City's Airports Department was awarded $4.6 million in CRRSAA funds. A portion of the funding ($0.2 million) is reserved for concession relief. The remaining funds can be spent on debt service payments, COVID- related expenses and operating expenses. As of June 30, neither Transit nor Airports had spent any of their CRRSAA award.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021
160 NOTE 14 - OTHER INFORMATION
Note 15. Deficit Fund Equity
The Convention Center Fund, Risk Management Internal Service Fund, and High Speed Rail Fund all had deficit net position balances as of June 30, 2021.
The deficit net position in the Convention Center Fund of $ 1.2 million is a continuation of many years of annual operating deficits. The 2021 fiscal year saw a $1.3 million decrease in the deficit net position, from $2.5 million to $1.2 million. The main driver of the decrease in the deficit net position was due to scheduled debt service payments which reduced the fund's Bonds Payable amount.
The deficit net position in the Risk Management Fund at June 30, 2021 was $173.4 million, an increase of $33.0 million. The increase was due to the City reflecting a Liability for Self-Insurance on its Combining Statement of Net Position in the amount of $185.7 million . This liability, which is not required to be prefunded, grew by $35.4 million between fiscal years 2020 and 2021.
The deficit net position in the High Speed Rail Fund at June 30, 2021 was $3.3 million. The deficit net position of this fund at the end of fiscal year 2020 was $5.6 million. The decrease in the deficit net position of $2.3 million is due to a $10 million increase in capital outlay construction projects alongside a $13 million increase in federal reimbursements.
The City management continues to evaluate strategies for reducing and eliminating these deficit fund equity balances.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 161 NOTE 15 - DEFICIT FUND EQUITY Note 16. Subsequent Events
In compliance with accounting standards, management has evaluated events that have occurred after fiscal year-end to determine if these events are required to be disclosed in the basic financial statements. Events were considered through January 19, 2022, which is the date the financial statements were available to be issued.
A. Bond Ratings
Moody's upgraded the City's Lease Revenue Bond from Baa1 to A3, its Pension Obligation Bond rating from Baa2 to Baa1, and its General Obligation rating from A3 to A2 on August 19, 2021. All three ratings maintained a Stable outlook. Moody's cited the City's strengthened financial performance and conservative debt profile among the reasons why they upgraded the City's credit ratings.
Standard and Poor's upgraded the Airports' bond rating from A- to A on November 2, 2021. Standard and Poor's also upgraded the outlook from Negative to Stable. As justification for the rating action, the agency cited the recovery in passenger traffic along with the corresponding improvement in revenues and liquidity.
The most current City ratings are as follows:
Rating
Agency
Effective
Date Rating Outlook
Lease Revenue Bonds
Fitch 6/2016 A- Stable
Standard & Poor’s 9/2020 A Stable
Moody’s 8/2021 A3 Stable
General Obligation (GO)
Fitch 6/2016 A Stable
Standard & Poor’s 9/2020 A+ Stable
Moody’s 8/2021 A2 Stable
B. Tax and Revenue Anticipation Bonds
The City chose to once again not issue Tax and Revenue Anticipation Notes subsequent to the end of fiscal year 2021.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 162 NOTE 16 - SUBSEQUENT EVENTS C. Housing and Urban Development Department Audit of Community Development Block Grant Monies Utilized By The City
The Office of Inspector General (OIG) of the Housing and Urban Development Department (HUD) began an audit of the City's Community Development Block Grant (CDBG) expenditures on August 25, 2016. The audit, which covered expenditures made between July 1, 2014 and September 30, 2016, was in response to two HUD monitoring visits that were conducted in 2012 and 2015. Both of those visits had turned up eligibility issues with the City's CDBG expenditures. OIG's fieldwork was completed on April 28, 2017. OIG issued its audit report on August 9, 2017. In the report, OIG concluded that the City still had eligibility issues with its CDBG expenditures. Specifically, the report stated that the City did not:
• meet requirements for the expenditure of CDBG monies on code enforcement activities, • ensure that CDBG funds were spent on non-general government expenditures for its anti- graffiti program,
• ensure that one program met a CDBG national objective, • properly monitor its sub-recipient or City departments, • use its program income before its entitlement funds, and • report program income to HUD in a timely manner.
The OIG attributed these errors to a lack of experience and capacity to administer and implement the program on the City's part, the lack of adequate procedures and controls in place, and a disregard for HUD requirements.
The OIG recommended the payback of $163,555 that were identified as being spent on ineligible costs. The OIG noted that $428,373 would be deemed ineligible expenditures in the upcoming program year if the City did not develop proper code enforcement policies and procedures. Finally, the OIG identified approximately $7.9 million in CDBG funded expenditures whose eligibility was questionable. The OIG requested additional supporting documentation for the $7.9 million of expenditures to make a final determination on eligibility.
The City has repaid the $412,204 that the OIG recommended be paid back. The City also ceased funding its code enforcement program with CDBG funds, thus preserving the $428,373 that was noted for possible disallowance. Additionally, the City provided, and HUD accepted, documentation that supported $2.6 million in questioned expenditures. In March 2021, HUD notified the City that it had made its final determination and would require the City repay HUD $5.3 million.
In July 2021, the City entered into a two-year repayment agreement with HUD. The City made its first repayment in July 2021 and will make the second half of the repayment by July 31, 2022. Once HUD receives the second and final repayment, the City’s obligation will be met and the audit will be closed.
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CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - General Fund
Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final BudgetOriginal Final
Budgetary Fund Balance, July 1 $ 68,210 $ 70,596 $ 70,240 $ (356) Resources (inflows):
Taxes:
Property Taxes 140,218 148,547 151,479 2,932
Sales Taxes 98,394 94,420 122,955 28,535
Other Taxes 38,297 32,540 34,812 2,272
Franchise Taxes 14,079 14,246 15,202 956
Licenses and Permits 6,946 8,767 9,476 709
Intergovernmental:
State Motor Vehicle In-Lieu 280 416 400 (16)
Other State Revenue 1,706 1,740 4,504 2,764
Other Intergovernmental 371 169 235 66
Charges for Services:
Charges for Services 34,716 37,525 35,819 (1,706)
Fines and Violations 4,499 2,985 1,805 (1,180)
Use of Money and Property 1,639 1,247 1,183 (64)
Miscellaneous 28,874 35,293 23,988 (11,305)
Other Financing Sources:
Transfers from Other Funds 2,383 76,530 84,218 7,688 Total Available for Appropriations 440,612 525,021 556,316 31,295 Charges to Appropriations (outflows):
General Government:
Mayor and City Council 10,020 10,691 8,789 (1,902)
Other General Government 30,858 76,788 61,709 (15,079) Public Protection:
Police Department 184,420 198,407 188,710 (9,697)
Fire Department 68,293 70,758 72,128 1,370
Public Ways & Facilities 16,721 18,144 15,914 (2,230) Culture and Recreation 21,351 27,539 24,200 (3,339) Community Development 34,363 39,842 34,110 (5,732)
Capital Outlay 9,443 22,766 18,761 (4,005)
Other Financing Uses:
Transfers to Other Funds 26,500 29,547 27,775 (1,772) Total Charges to Appropriations 401,969 494,482 452,096 (42,386) Less Estimated Attrition Savings 6,913 8,320 — (8,320) Excess Resources Over Appropriations $ 45,556 $ 38,859 $ 104,220 $ 65,361 See accompanying notes to the required supplementary information. 166
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - General Fund
Fiscal Year Ended June 30, 2021 (Continued)
(in thousands)
Explanation of differences between budgetary inflows and outflows and GAAP Revenues and Expenditures:
Sources/Inflows of Resources:
Actual amounts (budgetary basis) available for appropriation from the Budget to Actual Comparison Schedule. $ 556,316
Differences - Budget to GAAP:
The City budgets for taxes, intergovernmental and miscellaneous revenue on the cash basis of accounting, rather than on the modified accrual basis of accounting. 1,104 Interfund reimbursements are not revenues and are expenditures for financial reporting. (21,356) Carryovers are inflows of budgetary resources but are not revenues for financial reporting purposes. (70,240)
Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes. (84,218)
Nonreciprocal interfund activity is not revenue and is a transfer for financial reporting. (4,624) The proceeds from the sale of capital assets are inflows of budgetary resources but are not revenues for financial reporting purposes. —
Total revenues as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 376,982
Uses/Outflows of Resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the Budget to Actual Comparison Schedule. $ 452,096 Differences - Budget to GAAP:
The City budgets for expenditures on the cash basis of accounting, rather than on the modified accrual basis of accounting. (1,275)
Interfund reimbursements are a reduction of expenditures for financial reporting. (21,356) Pension Obligation bond debt payments and City Hall rent are recognized as transfers out to other funds. (14,472)
Transfers to other funds are outflows of budgetary resources, but are not expenditures for financial reporting purposes. (27,775) Return on capital asset as offset for Advances to Other Funds Capital Lease additions are expenditures for financial reporting purposes. 861 Total charges to appropriations as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 388,079 See accompanying notes to the required supplementary information. 167
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Grants Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final BudgetOriginal Final
Budgetary Fund Balance, July 1 $ (7,304) $ (9,755) $ 70,299 $ 80,054 Resources (inflows):
Intergovernmental:
Federal Grants 44,382 227,925 117,025 (110,900)
State Grants 18,880 68,000 13,049 (54,951)
Local Support 102 74 42 (32)
Charges for Services 1,478 1,366 1,416 50
Use of Money and Property (14) (37) 2,688 2,725
Miscellaneous 351 236 656 420
Other Financing Sources:
Transfers from Other Funds 309 1,579 1,200 (379)
Total Available for Appropriations 58,184 289,388 206,375 (83,013) Charges to Appropriations (outflows):
General Government 4,200 43,721 10,217 (33,504)
Public Protection 5,371 6,186 4,908 (1,278)
Public Ways & Facilities 35,140 42,817 12,070 (30,747) Culture and Recreation 1,838 11,621 557 (11,064)
Community Development 14,669 49,929 6,667 (43,262)
Capital Outlay 34,479 81,221 10,858 (70,363)
Other Financing Uses:
Transfers to Other Funds 845 101,451 76,961 (24,490) Total Charges to Appropriations 96,542 336,946 122,238 (214,708) Excess (Deficit) Resources Over Appropriations $ (38,358) $ (47,558) $ 84,137 $ 131,695 See accompanying notes to the required supplementary information. 168
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Grants Special Revenue Fund Fiscal Year Ended June 30, 2021 (Continued)
(in thousands)
Explanation of differences between budgetary inflows and outflows and GAAP Revenues and Expenditures:
Sources/Inflows of Resources:
Actual amounts (budgetary basis) available for appropriation from the Budget to Actual Comparison Schedule. $ 206,375
Differences - Budget to GAAP:
Grant reimbursements are budgeted on the cash basis of accounting rather than on the modified accrual basis of accounting. (27,995)
Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes. (1,200)
Interfund reimbursements are not revenues and are expenditures for financial reporting. (1,245) Carryovers are inflows of budgetary resources but are not revenues for financial reporting purposes. (70,299)
Payments from the Successor Agency to the Fresno Redevelopment Agency on advances with full allowance are revenues. (33)
The receipt of loan payments are inflows of budgetary resources but are not revenues for financial reporting purposes. (2,844) Total revenues as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 102,759
Uses/Outflows of Resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the Budget to Actual Comparison Schedule. $ 122,238 Differences - budget to GAAP:
The City budgets for expenditures on the cash basis of accounting rather than on the modified accrual basis of accounting. 6,907 Interfund reimbursements are a reduction of expenditures for financial reporting. (1,245) Pension Obligation bond debt, HUD debt, and City Hall rent are recognized as transfers out to other funds. (246)
The issuance of notes receivable are outflows of budgetary resources but are not expenditures for financial reporting purposes. (931) Changes in allowance for doubtful accounts on notes receivable, notes that should become grants, and adjustments are expenditures for financial reporting purposes. (89) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes. (76,961) Total charges to appropriations as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 49,673 See accompanying notes to the required supplementary information. 169
Notes to the Required Supplementary Information
A. Budgetary Data
The City of Fresno (the City) operates under the Strong-Mayor form of government. Under the Strong-Mayor form of government, the Mayor serves as the City’s Chief Executive Officer, appointing and overseeing the City Manager, recommending legislation, and presenting the annual budget to the City Council.
The City adopts annual budgets for all governmental and business-type funds (except Fresno Revitalization Corporation, Financing Authorities and Corporations, and City Debt Service) on the cash basis of accounting plus encumbrances. The budget includes: (1) the programs, projects, services, and activities to be provided during the fiscal year, (2) the estimated resources (inflows) and amounts available for appropriation, and (3) the estimated charges to appropriations. The budget represents a process through which policy decisions are made, implemented, and controlled. The City Charter (the Charter) prohibits expending funds for which there is no legal appropriation.
The budget of the City of Fresno, within the meaning and context of Section No. 1205 of the Charter, must be adopted by resolution of the City Council by June 30 of a given year. The following procedures are used in establishing the budgetary data reflected in the budgetary comparison schedules.
As provided by Section No. 1206 of the Charter, any adjustments in the amounts appropriated for the purposes indicated at the department/fund level are made only upon a motion to amend the resolution adopted by the affirmative votes of at least five City Council members.
B. Budget Development
The preparation of the budget document is the result of a Citywide effort. Each department is presented with an operating base budget that is used as the foundation for building their requests for the operations of their organizations. All one-time expenditure increases are removed, except for those demonstrable and mandatory. A five-year capital budget is required from all departments.
The purpose is to give the Mayor and City Council a tool to plan for the future as well as to more realistically reflect the timing of many capital projects that take more than one year to complete.
Departments submit their requests to be analyzed and reviewed by the City’s Budget and Management Studies Division (BMSD). Requests are evaluated based on individual operations, City funding resources, and the goals and strategies identified by each organization related to the impact on performance measures. Recommendations are presented to the Mayor and City Manager in a series of review meetings comprised of the Mayor, Mayor’s Chief of Staff, City Manager, Assistant City Managers, Budget Manager, Department Directors and representatives from each department, and BMSD. Upon final decisions of format and content, the Mayor’s Recommended Budget Document is printed and presented to the City Council for deliberation and adoption.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 170 NOTES TO THE
REQUIRED SUPPLEMENTARY INFORMATION
C. Original Budget
Prior to June 1, the Mayor submits to the City Council a recommended detailed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.
Public hearings are conducted to obtain taxpayer comment on the proposed annual budget. The Mayor and his staff analyze, review, and refine the budget submittals.
Prior to July 1, the budget is legally enacted through adoption of a resolution by the City Council.
D. Final Budget
Certain annual appropriations are budgeted on a project or program basis. If such projects or programs are not completed at the end of the fiscal year, unexpended appropriations are carried forward to the following year though either an encumbrance or an amendment to the budget. In certain circumstances, other programs and regular annual appropriations may be carried forward after appropriate approval. Annually appropriated funds not authorized to be carried forward lapse at the end of the fiscal year. Appropriations carried forward from the prior year are included in the final budgetary data.
The City Manager is authorized to transfer funds already appropriated within a department's budget within a fund. However, any revisions that alter the total appropriations of a department within a fund must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the department level within a fund.
The City adopts an annual budget for all governmental and business-type funds. The Adopted Budget Document is prepared to include all the various changes approved by the City Council. No budgets are legally adopted for Fresno Revitalization Corporation, Financing Authorities and Corporations, and City Debt Service. Budgeted amounts are reported as amended. During the year, several supplementary appropriations were necessary, but were not material in relation to the original appropriations.
E. Budgetary Results Reconciliation
1. Basis Differences
The City’s budgetary process is based upon an accounting basis other than generally accepted accounting principles (GAAP). The results of operations (actual) are presented in the budget and actual comparison schedule in accordance with the budgetary process (Budget basis) to provide a meaningful comparison with the budget, while the financial statements are presented using the GAAP basis. Loan proceeds, loan repayments, transfers, and interfund reimbursements primarily cause the basis differences.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 171 NOTES TO THE
REQUIRED SUPPLEMENTARY INFORMATION
2. Timing Differences
One of the major differences between the Budget basis and GAAP basis are timing differences.
Timing differences represent transactions that are accounted for in different periods for the Budget basis as opposed to the GAAP basis of reporting. Revenues such as grant revenues recognized on a cash basis are unavailable for GAAP reporting, while various expenditures not recognized on a cash basis have been accrued for GAAP reporting.
Administrative amendments within the same department/fund level may be made without approval of the City Council within written guidelines established by the Chief Administrative Officer/City Manager.
For accounting and auditing convenience, appropriations for capital improvements may be established in two or more different funds for the same capital project.
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund and Special Revenue Funds are included in the annual appropriated budget. Project-length financial plans are adopted for certain capital projects. The level of budgetary controls (the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the department level by major expenditure category. Purchase orders that result in an overrun (encumbrance exceeding available appropriations) of department-level balances by object are not released until additional appropriations are made available. Open encumbrances at June 30 are reported as restricted, committed, or assigned fund balance in the governmental funds Balance Sheet.
The City assumed an attrition savings amount of $6.9 million in its fiscal year 2021 budget. The amount was in recognition of the fact that not all positions budgeted in the General Fund are filled during the entire fiscal year. The attrition savings was established as a negative appropriation in each General Fund department's Personnel Services budget. However, no actual savings accrued against the attrition savings account. For purposes of the Budget-to-Actual report in the Required Supplementary Information, the difference between the negative appropriation and the actual lack of activity results in the account appearing to be over-budget.
Actual Transfers from Other Funds were $ 7.7 million higher than budgeted levels in fiscal year 2021. The overage was mostly due to transfers from the CARES Grant fund for eligible expenditures.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 172 NOTES TO THE
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Investment Returns
PENSION TRUST FUNDS
EMPLOYEES, FIRE AND POLICE RETIREMENT SYSTEMS
Last Ten Fiscal Years
Fiscal Year
Ending June 30
Annual Money-Weighted Rate of Return
Gross of Investment Expenses
Annual Money-Weighted Rate of Return
Net of Investment Expense
2021 30.85% 30.43%
2020 1.61% 1.26%
2019 5.54% 5.20%
2018 8.93% 8.57%
2017 14.73% 14.35%
2016 0.82% 0.53%
2015 3.32% 2.93%
2014 17.61% 17.16%
2013 13.65% 13.20%
2012 (0.20)% (0.57)%
The Schedule of Investment Returns above shows the annual money-weighted rate of return on the assets of the Systems, both gross and net of investment expense for ten fiscal years ( 2012-2021). The money-weighted rate of return expresses investment performance adjusted for timing of cash flows and the changing amounts actually invested. These returns differ slightly from the time-weighted rate of returns calculated and reported by the Systems' custodian, Northern Trust, and as independently reported by the Systems' investment consulting firm, NEPC, LLC. The Systems' custodian and investment consulting firm must use time-weighted returns as opposed to money-weighted returns in order to meet Global Investment Performance Standards for the purposes of effectively evaluating and reporting the performance of the Systems' investment managers.
The time-weighted return method is a measure of the compound rate of return of a portfolio over a stated period of time. It requires a set of sub- period returns to be calculated whenever there is an external cash flow, such as a deposit or withdrawal from the portfolio. In essence, it calculates the geometric total and mean return as opposed to the arithmetic total and mean return. This method does not include or have any distortions created when money is deposited or withdrawn from a portfolio. This is in contrast to money-weighted returns.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 173
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios
PENSION TRUST FUNDS
FIRE AND POLICE RETIREMENT SYSTEMS
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios(2) Change in Net Pension Liability (in thousands)
For the Fiscal Year Ended: 6/30/2021 6/30/2020 6/30/2019 Reporting Date: 6/30/2021 6/30/2020 6/30/2019
Measurement Date: 6/30/2020 6/30/2019 6/30/2018
Total Pension Liability
Service Cost $ 37,619 $ 33,211 $ 30,298
Interest 105,570 100,609 95,274
Differences between expected &
actual experience 260 (7,067) 6,722
Changes of assumptions (14,745) 55,856 2,891
Benefit payments, including refunds (67,202) (65,962) (63,071) Net Change in Total Pension
Liability 61,502 116,647 72,114
Total Pension Liability - Beginning 1,504,129 1,387,482 1,315,368 Total Pension Liability - Ending (a)* $ 1,565,631 $ 1,504,129 $ 1,387,482 Plan Fiduciary Net Position
Contributions - employer $ 22,324 $ 20,604 $ 19,697
Contributions - employee 10,012 9,597 8,964
Net Investment Income 24,206 82,872 129,163
Benefit Payments including Refunds,
PRSB (67,202) (65,962) (63,071)
Administrative & Professional
Expense (1,839) (1,897) (1,710)
Net Change in Plan Fiduciary Net
Position (12,499) 45,214 93,043
Plan Fiduciary Net Position - Beginning 1,647,800 1,602,586 1,509,543 Plan Fiduciary Net Position - Ending (b) $ 1,635,301 $ 1,647,800 $ 1,602,586 Plan Net Pension Liability (Asset) -
Ending (a) - (b) $ (69,670) $ (143,671) $ (215,104)
Plan Fiduciary Net Position as a
percentage of Total Pension Liability 104.45 % 109.55 % 115.50 % Covered Payroll (1) $ 113,843 $ 109,803 $ 103,934
Plan Net Pension Liability as a
percentage of covered payroll (61.20) % (130.84) % (206.96) % * Data above is provided in accordance with provisions of GASB Statement No. 68 for determining Total Pension Liability which for financial reporting purposes uses a version of the Entry Age method whereby the Actuarial Accrued Liability is fully accrued when a member either enters DROP or is expected to elect DROP. (1) Covered payroll represents payroll in which contributions to the Systems are based. (2) Ten year data will be presented in future years as information becomes available.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 174
PENSION TRUST FUNDS
FIRE AND POLICE RETIREMENT SYSTEMS
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios (cont) Change in Net Pension Liability (in thousands)
6/30/2018 6/30/2017 6/30/2016 6/30/2015 For the Fiscal Year Ended:
6/30/2018 6/30/2017 6/30/2016 6/30/2015 Reporting Date:
6/30/2017 6/30/2016 6/30/2015 6/30/2014 Measurement Date:
Total Pension Liability
$ 28,838 $ 26,569 $ 26,518 $ 28,058 Service Cost
90,185 88,363 86,771 86,092 Interest
10,896 (42,952) (36,528) (49,879)
Differences between expected &
actual experience
— 49,427 — — Changes of assumptions
(59,273) (56,581) (54,612) (52,720) Benefit payments, including refunds 70,646 64,826 22,149 11,551
Net Change in Total Pension
Liability
1,244,722 1,179,896 1,157,747 1,146,196 Total Pension Liability - Beginning $ 1,315,368 $ 1,244,722 $ 1,179,896 $ 1,157,747 Total Pension Liability - Ending (a)* Plan Fiduciary Net Position
$ 18,543 $ 18,738 $ 18,967 $ 18,575 Contributions - employer 8,169 7,748 7,385 7,294 Contributions - employee
192,315 6,063 39,164 201,838 Net Investment Income
(59,273) (56,581) (54,612) (52,720)
Benefit Payments including Refunds,
PRSB
(1,500) (1,397) (1,108) (1,119)
Administrative & Professional
Expense
158,254 (25,429) 9,796 173,868
Net Change in Plan Fiduciary Net
Position
1,351,289 1,376,718 1,366,922 1,193,054 Plan Fiduciary Net Position - Beginning $ 1,509,543 $ 1,351,289 $ 1,376,718 $ 1,366,922 Plan Fiduciary Net Position - Ending (b) $ (194,175) $ (106,567) $ (196,822) $ (209,175)
Plan Net Pension Liability (Asset) -
Ending (a) - (b)
114.76 % 108.56 % 116.68 % 118.07 %
Plan Fiduciary Net Position as a
percentage of Total Pension Liability
$ 97,369 $ 94,266 $ 91,075 $ 91,721 Covered Payroll (1) (199.42) % (113.05) % (216.11) % (228.06) %
Plan Net Pension Liability as a
percentage of covered payroll
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 175
PENSION TRUST FUNDS
EMPLOYEES RETIREMENT SYSTEMS
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios(2) Change in Net Pension Liability (in thousands)
For the Fiscal Year Ended: 6/30/2021 6/30/2020 6/30/2019 Reporting Date: 6/30/2021 6/30/2020 6/30/2019
Measurement Date: 6/30/2020 6/30/2019 6/30/2018
Total Pension Liability
Service Cost $ 28,762 $ 23,509 $ 21,275
Interest 89,222 86,110 82,833
Differences between expected &
actual experience 5,748 (446) (4,164)
Changes of assumptions — 35,773 2,939
Benefit payments, including refunds (64,519) (62,144) (57,666) Net Change in Total Pension
Liability 59,213 82,802 45,217
Total Pension Liability - Beginning 1,278,096 1,195,294 1,150,077 Total Pension Liability - Ending (a)* $ 1,337,309 $ 1,278,096 $ 1,195,294 Plan Fiduciary Net Position
Contributions - employer $ 16,554 $ 14,627 $ 14,609
Contributions - employee 11,028 10,515 10,330
Net Investment Income 20,109 69,389 108,915
Benefit Payments including Refunds,
PRSB (64,519) (62,144) (57,666)
Administrative & Professional
Expense (1,749) (1,663) (1,619)
Net Change in Plan Fiduciary Net
Position (18,577) 30,724 74,569
Plan Fiduciary Net Position - Beginning 1,379,415 1,348,691 1,274,122 Plan Fiduciary Net Position - Ending (b) $ 1,360,838 $ 1,379,415 $ 1,348,691 Plan Net Pension Liability (Asset) -
Ending (a) - (b) $ (23,529) $ (101,319) $ (153,397)
Plan Fiduciary Net Position as a
percentage of Total Pension Liability 101.76 % 107.93 % 112.83 % Covered Payroll (1) $ 149,403 $ 138,396 $ 128,461
Plan Net Pension Liability as a
percentage of covered payroll (15.75) % (73.21) % (119.41) % * Data above is provided in accordance with provisions of GASB Statement No. 68 for determining Total Pension Liability which for financial reporting purposes uses a version of the Entry Age method whereby the Actuarial Accrued Liability is fully accrued when a member either enters DROP or is expected to elect DROP. (1) Covered payroll represents payroll in which contributions to the Systems are based. (2) Ten year data will be presented in future years as information becomes available.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 176
PENSION TRUST FUNDS
EMPLOYEES RETIREMENT SYSTEMS
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios (cont) Change in Net Pension Liability (in thousands)
6/30/2018 6/30/2017 6/30/2016 6/30/2015 For the Fiscal Year Ended:
6/30/2018 6/30/2017 6/30/2016 6/30/2015 Reporting Date:
6/30/2017 6/30/2016 6/30/2015 6/30/2014 Measurement Date:
Total Pension Liability
$ 18,885 $ 18,687 $ 18,476 $ 19,342 Service Cost
79,266 79,763 78,212 77,010 Interest
5,263 (24,394) (24,691) (29,889)
Differences between expected &
actual experience
— 9,612 — — Changes of assumptions
(55,550) (52,529) (50,546) (48,581) Benefit payments, including refunds 47,864 31,139 21,451 17,882
Net Change in Total Pension
Liability
1,102,213 1,071,074 1,049,623 1,031,741 Total Pension Liability - Beginning $ 1,150,077 $ 1,102,213 $ 1,071,074 $ 1,049,623 Total Pension Liability - Ending (a)* Plan Fiduciary Net Position
$ 15,205 $ 13,060 $ 12,327 $ 11,440 Contributions - employer 10,181 9,098 8,750 7,945 Contributions - employee
162,374 5,089 33,310 172,773 Net Investment Income
(55,550) (52,529) (50,546) (48,581)
Benefit Payments including Refunds,
PRSB
(1,387) (1,346) (1,071) (1,086)
Administrative & Professional
Expense
130,823 (26,628) 2,770 142,491
Net Change in Plan Fiduciary Net
Position
1,143,299 1,169,927 1,167,157 1,024,666 Plan Fiduciary Net Position - Beginning $ 1,274,122 $ 1,143,299 $ 1,169,927 $ 1,167,157 Plan Fiduciary Net Position - Ending (b) $ (124,045) $ (41,086) $ (98,853) $ (117,534)
Plan Net Pension Liability (Asset) -
Ending (a) - (b)
110.79 % 103.73 % 109.23 % 111.20 %
Plan Fiduciary Net Position as a
percentage of Total Pension Liability
$ 119,007 $ 108,541 $ 105,820 $ 103,597 Covered Payroll (1) (104.23) % (37.85) % (93.42) % (113.45) %
Plan Net Pension Liability as a
percentage of covered payroll
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 177
Schedule of Employer Contribution - Pension Trust Funds
FIRE AND POLICE RETIREMENT SYSTEM
Schedule of Employer Contributions
Last Ten Fiscal Years
(in thousands)
Fiscal Year
Ending
June 30
Actuarially
Determined
Contribution
(ADC)1
Contributions
in Relation to
the ADC
Contribution
Deficiency
(Excess)
Covered
Payroll
Contributions as a
Percentage of
Covered Payroll
2021 $ 26,315 $ 26,315 $ — $ 115,341 22.81%
2020 22,324 22,324 — 113,843 19.61%
2019 20,604 20,604 — 109,803 18.76%
2018 19,697 19,697 — 103,934 18.95%
2017 18,543 18,543 — 97,369 19.04%
2016 18,738 18,738 — 94,266 19.88%
2015 18,967 18,967 — 91,075 20.83%
2014 18,575 18,575 — 91,721 20.25%
2013 18,725 18,725 — 94,368 19.84%
2012 22,875 22,875 — 96,195 23.78%
EMPLOYEES RETIREMENT SYSTEM
Schedule of Employer Contributions
Last Ten Fiscal Years
(in thousands)
Fiscal Year
Ending
June 30
Actuarially
Determined
Contribution
(ADC)1
Contributions
in Relation to
the ADC
Contribution
Deficiency
(Excess)
Covered
Payroll
Contributions as
a Percentage of
Covered Payroll
2021 $ 20,144 $ 20,144 $ — $ 154,031 13.08%
2020 16,554 16,554 — 149,403 11.08%
2019 14,627 14,627 — 138,396 10.57%
2018 14,609 14,609 — 128,461 11.37%
2017 15,205 15,205 — 119,007 12.78%
2016 13,060 13,060 — 108,541 12.03%
2015 12,327 12,327 — 105,820 11.65%
2014 11,440 11,440 — 103,597 11.04%
2013 13,330 13,330 — 105,509 12.63%
2012 11,374 11,374 — 110,492 10.29%
1 Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported. As such, the actuarial valuation dated June 30, 2020, will impact the contribution rate for the fiscal year ended June 30, 2022.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 178
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS For Fiscal Year Ending June 30
(in thousands)
2018 2019 2020 2021
Net OPEB Liability Beginning of Year $ 84,639 $ 92,820 $ 113,700 $ 148,672 Changes for the Year:
Service Cost $ 4,769 $ 5,777 $ 10,885 $ 10,052
Interest 2,995 3,688 3,012 3,045
Difference between Actual and
Expected Experience 417 — (7,800) —
Assumption Changes 13,406 30,936 (6,622)
Benefit Payments — (1,991) (2,061) (2,543)
Net Changes 8,181 20,880 34,972 3,932
Net OPEB Liability End of Year $ 92,820 $ 113,700 $ 148,672 $ 152,604 Covered-Employee Payroll as of
December 311 $ 229,256 $ 236,134 $ 250,860 $ 257,132
Net OPEB Liability as a percentage of
covered-employee payroll 40.49% 48.15% 59.26% 59.35%
Notes to Schedule
Historical information is required only for measurement periods for which GASB Statement No. 75 is applicable.
Future years information will be displayed up to 10 years as information becomes available.
The City does not accumulate assets in a dedicated trust, or equivalent arrangement, for the purpose of funding its retiree healthcare obligation. Therefore, the actuarial value of plan assets is zero. 1Covered-employee payroll used in the most recent valuation was calculated based on mid-year, as it was considered representative of the payroll during the fiscal year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 179
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CITY OF FRESNO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
(in thousands)
Special Revenue
High Speed
Rail
Fresno
Revitalization
Corporation
Special
Gas Tax Measure C
Community
Services
UGM
Impact Fees
Assets
Cash and Investments $ 45 $ 390 $ 15,982 $ 14,726 $ 9,955 $ 46,955 Receivables, Net — 4 75 60 248 223
Grants Receivable 915 — — — 89 —
Intergovernmental Receivables — — 2,291 3,521 8 — Due From Other Funds — — — — 243 1,571
Advances to Other Funds — — — — — —
Property Held for Resale — — — — — —
Restricted Cash — — — — 1,361 —
Loans, Notes, Leases, Other
Receivables, Net — — — — — —
Total Assets $ 960 $ 394 $ 18,348 $ 18,307 $ 11,904 $ 48,749 Liabilities
Accrued Liabilities $ 1,293 $ 85 $ 2,241 $ 1,242 $ 310 $ 638 Unearned Revenue — — — — — —
Due to Other Funds 2,048 — 343 176 — —
Advances From Other Funds — 62 — — — 3,174
Deposits From Others — — — — 4 —
Total Liabilities 3,341 147 2,584 1,418 314 3,812 Deferred Inflows of Resources
Unavailable Revenue-Other 915 — — 544 89 —
Total Deferred Inflows of Resources 915 — — 544 89 — Fund Balances
Restricted — 247 15,764 16,345 3,753 44,937
Assigned — — — 7,748 —
Unassigned (3,296) — — — — —
Total Fund Balances (3,296) 247 15,764 16,345 11,501 44,937 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 960 $ 394 $ 18,348 $ 18,307 $ 11,904 $ 48,749 182
Debt Service
Capital
Projects
Low and
Moderate
Income
Housing
Special
Assessments City Debt
Financing
Authorities
and
Corporations
City
Combined
Total
Nonmajor
Governmental
Funds
Assets
$ 9,254 $ 14,412 $ 2 $ 2,680 $ 6,558 $ 120,959 Cash and Investments — 67 1 8 41 727 Receivables, Net
— — — — 273 1,277 Grants Receivable
— 92 — — — 5,912 Intergovernmental Receivables
— — — — — 1,814 Due From Other Funds
62 — — — — 62 Advances to Other Funds
4,756 — — — — 4,756 Property Held for Resale
— — — 16,572 — 17,933 Restricted Cash
20,614 — — — — 20,614
Loans, Notes, Leases, Other
Receivables, Net
$ 34,686 $ 14,571 $ 3 $ 19,260 $ 6,872 $ 174,054 Total Assets Liabilities
$ — $ 250 $ — $ 1 $ 1,777 $ 7,837 Accrued Liabilities
— — — — — — Unearned Revenue
— 74 — — — 2,641 Due to Other Funds
— — — — — 3,236 Advances From Other Funds
— — — — — 4 Deposits From Others
— 324 — 1 1,777 13,718 Total Liabilities
Deferred Inflows of Resources
— — — — — 1,548 Unavailable Revenue-Other
— — — — — 1,548 Total Deferred Inflows of Resources Fund Balances
34,686 14,247 3 19,259 — 149,241 Restricted
— — — — 5,095 12,843 Assigned
— — — — — (3,296) Unassigned
34,686 14,247 3 19,259 5,095 158,788 Total Fund Balances $ 34,686 $ 14,571 $ 3 $ 19,260 $ 6,872 $ 174,054
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
183
CITY OF FRESNO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Special Revenue
High Speed
Rail
Fresno
Revitalization
Corporation
Special
Gas Tax Measure C
Community
Services
UGM
Impact Fees
Revenues
Taxes $ — $ — $ 21,909 $ 15,589 $ 3,497 $ —
Intergovernmental 14,237 — — — 3,565 —
Charges for Services 545 209 — — 2,504 21,886
Use of Money and Property — 130 79 188 226 142
Miscellaneous 6 — 320 316 304 —
Total Revenues 14,788 339 22,308 16,093 10,096 22,028 Expenditures
Current:
General Government — — — — 724 —
Public Protection — — — — 2,210 180
Public Ways and Facilities 1,429 — 16,784 11,004 1,275 2,488 Culture and Recreation — — — — 1,063 366
Community Development 72 229 — — 1,438 —
Capital Outlay 11,036 — 2,552 1,722 843 4,223
Debt Service:
Principal — — — — — —
Interest — — — — — 2
Total Expenditures 12,537 229 19,336 12,726 7,553 7,259 Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,251 110 2,972 3,367 2,543 14,769 Other Financing Sources (Uses)
Transfers In 58 — 58 33 180 —
Transfers Out (15) — (149) (670) (108) (8,039)
Long-Term Debt Issued — — — — — —
Premium on Debt Issued — — — — — —
Total Other Financing
Sources (Uses) 43 — (91) (637) 72 (8,039)
Net Change in Fund Balances 2,294 110 2,881 2,730 2,615 6,730 Fund Balances (Deficit) - Beginning (5,590) 137 12,883 13,615 8,886 38,207 Fund Balances (Deficit) - Ending $ (3,296) $ 247 $ 15,764 $ 16,345 $ 11,501 $ 44,937 184
Debt Service
Capital
Projects
Low and
Moderate
Income
Housing
Special
Assessments City Debt
Financing
Authorities
and
Corporations
City
Combined
Total
Nonmajor
Governmental
Funds
Revenues
$ — $ — $ — $ — $ — $ 40,995 Taxes
480 — — — — 18,282 Intergovernmental
— 6,469 — — — 31,613 Charges for Services
534 (26) 1 27 (95) 1,206 Use of Money and Property — 4 — — 588 1,538 Miscellaneous
1,014 6,447 1 27 493 93,634 Total Revenues
Expenditures
Current:
217 — 8 921 — 1,870 General Government
— — — — — 2,390 Public Protection
— 5,745 — — — 38,725 Public Ways and Facilities
— — — — — 1,429 Culture and Recreation
30 — — — — 1,769 Community Development
— 1 — — 10,374 30,751 Capital Outlay
Debt Service:
— — 9,357 9,480 — 18,837 Principal
— — 7,098 5,092 — 12,192 Interest
247 5,746 16,463 15,493 10,374 107,963 Total Expenditures 767 701 (16,462) (15,466) (9,881) (14,329)
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
830 4 16,454 15,366 8,647 41,630 Transfers In
— (54) — (2,448) (178) (11,661) Transfers Out
— — — 17,145 — 17,145 Long-Term Debt Issued
— — — 2,773 — 2,773 Premium on Debt Issued
830 (50) 16,454 32,836 8,469 49,887
Total Other Financing
Sources (Uses)
1,597 651 (8) 17,370 (1,412) 35,558 Net Change in Fund Balances 33,089 13,596 11 1,889 6,507 123,230 Fund Balances (Deficit) - Beginning $ 34,686 $ 14,247 $ 3 $ 19,259 $ 5,095 $ 158,788 Fund Balances (Deficit) - Ending 185
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - High Speed Rail - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ (7,092) $ (22,311) $ (22,424) $ (113) $ 22,424 $ — Resources (inflows):
Intergovernmental 9,784 11,250 14,237 2,987 — 14,237 Charges for Services 1,200 817 545 (272) — 545
Use of Money and Property (10) (57) (55) 2 55 —
Miscellaneous — — 6 6 — 6
Other Financing Sources:
Transfers from Other Funds 12 59 531 472 (473) 58 Total Available
for Appropriations 3,894 (10,242) (7,160) 3,082 22,006 14,846 Charges to Appropriations
(outflows):
Public Ways and Facilities 5,295 2,362 1,260 (1,102) 169 1,429 Community Development 335 335 104 (231) (32) 72
Capital Outlay 22,489 8,194 10,564 2,370 472 11,036 Other Financing Uses:
Transfers to Other Funds — — 488 488 (473) 15
Total Charges
to Appropriations 28,119 10,891 12,416 1,525 136 12,552 Excess (Deficit) Resources
Over (Under) Appropriations $ (24,225) $ (21,133) $ (19,576) $ 1,557 $ 21,870 $ 2,294 186
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Special Gas Tax - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ 6,612 $ 9,089 $ 8,929 $ (160) $ (8,929) $ — Resources (inflows):
Taxes 19,754 24,039 21,302 (2,737) 607 21,909
Use of Money and Property 78 168 197 29 (118) 79
Miscellaneous 190 218 354 136 (34) 320
Other Financing Sources:
Transfers From Other Funds 10 81 49 (32) 9 58
Total Available
for Appropriations 26,644 33,595 30,831 (2,764) (8,465) 22,366 Charges to Appropriations
(outflows):
Public Ways and Facilities 20,553 23,332 16,852 (6,480) (68) 16,784 Capital Outlay 5,897 7,717 1,797 (5,920) 755 2,552 Other Financing Uses:
Transfers to Other Funds 250 60 (4) (64) 153 149
Total Charges
to Appropriations 26,700 31,109 18,645 (12,464) 840 19,485 Excess (Deficit) Resources
Over (Under) Appropriations $ (56) $ 2,486 $ 12,186 $ 9,700 $ (9,305) $ 2,881 187
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Measure C - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ 7,151 $ 9,386 $ 9,086 $ (300) $ (9,086) $ — Resources (inflows):
Taxes 17,433 38,020 14,260 (23,760) 1,329 15,589
Use of Money and Property 85 208 188 (20) — 188
Miscellaneous 75 714 253 (461) 63 316
Other Financing Sources:
Transfers from Other Funds 14 54 44 (10) (11) 33 Total Available
For Appropriations 24,758 48,382 23,831 (24,551) (7,705) 16,126 Charges to Appropriations
(outflows):
Public Ways and Facilities 16,804 44,046 11,509 (32,537) (505) 11,004 Capital Outlay 14,741 13,016 1,751 (11,265) (29) 1,722 Other Financing Uses:
Transfers to Other Funds 605 402 394 (8) 276 670
Total Charges
to Appropriations 32,150 57,464 13,654 (43,810) (258) 13,396 Excess (Deficit) Resources
Over (Under) Appropriations $ (7,392) $ (9,082) $ 10,177 $ 19,259 $ (7,447) $ 2,730 188
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Community Services - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
to GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ 4,808 $ 6,983 $ 7,189 $ 206 $ (7,189) $ — Resources (inflows):
Taxes 3,333 3,250 3,494 244 3 3,497
Intergovernmental 6,597 5,120 3,565 (1,555) — 3,565 Charges for Services 2,756 30,501 2,504 (27,997) — 2,504 Use of Money and Property 516 360 353 (7) (127) 226 Miscellaneous 10 5 304 299 — 304
Other Financing Sources:
Transfers from Other Funds 568 458 180 (278) — 180 Total Available
For Appropriations 18,588 46,677 17,589 (29,088) (7,313) 10,276 Charges to Appropriations
(outflows):
General Government 1,500 1,500 724 (776) — 724
Public Protection 3,895 4,226 2,286 (1,940) (76) 2,210 Public Ways and Facilities 3,906 4,308 1,222 (3,086) 53 1,275 Culture and Recreation 1,804 1,644 998 (646) 65 1,063 Community Development 3,159 1,510 1,438 (72) — 1,438 Capital Outlay 1,776 55,441 959 (54,482) (116) 843 Other Financing Uses:
Transfers to Other Funds 787 778 28 (750) 80 108
Total Charges
to Appropriations 16,827 69,407 7,655 (61,752) 6 7,661 Excess (Deficit) Resources
Over (Under) Appropriations $ 1,761 $ (22,730) $ 9,934 $ 32,664 $ (7,319) $ 2,615 189
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - UGM Impact Fees - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ 26,832 $ 34,741 $ 34,666 $ (75) $ (34,666) $ — Resources (inflows):
Charges for Services 11,481 12,882 21,862 8,980 24 21,886 Use of Money and Property 223 471 604 133 (462) 142 Other Financing Sources:
Transfers from Other Funds 85 462 31 (431) (31) — Total Available
for Appropriations 38,621 48,556 57,163 8,607 (35,135) 22,028 Charges to Appropriations
(outflows):
Public Protection 256 572 599 27 (419) 180
Culture and Recreation 973 308 325 17 41 366
Public Ways and Facilities 8,284 8,670 2,488 (6,182) — 2,488 Capital Outlay 14,735 17,268 3,795 (13,473) 428 4,223 Debt Service
Interest — — — — 2 2
Other Financing Uses:
Transfers to Other Funds 2,070 4,160 4,896 736 3,143 8,039 Total Charges
to Appropriations 26,318 30,978 12,103 (18,875) 3,195 15,298 Excess (Deficit) Resources
Over (Under) Appropriations $ 12,303 $ 17,578 $ 45,060 $ 27,482 $ (38,330) $ 6,730 190
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Low and Moderate Income Housing - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal
Budgetary Fund Balance, July 1 $ — $ — $ — $ — $ —
Resources (inflows):
Intergovernmental 480 480 — — 480
Use of Money and Property 534 534 — — 534
Other Financing Sources:
Transfers from Other Funds 830 830 — — 830
Total Available
for Appropriations 1,844 1,844 — — 1,844
Charges to Appropriations (outflows):
General Government 217 217 — — 217
Community Development 30 30 — — 30
Total Charges
to Appropriations 247 247 — — 247
Excess (Deficit) Resources
Over (Under) Appropriations $ 1,597 $ 1,597 $ — $ — $ 1,597 191
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Special Assessments - Special Revenue Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ 11,903 $ 13,245 $ 13,245 $ — $ (13,245) $ — Resources (inflows):
Charges for Services 4,659 5,951 6,469 518 — 6,469 Use of Money and Property 122 234 179 (55) (205) (26) Miscellaneous — 10 4 (6) — 4
Other Financing Sources:
Transfers from Other Funds 359 371 372 1 (368) 4
Total Available
for Appropriations 17,043 19,811 20,269 458 (13,818) 6,451 Charges to Appropriations
(outflows):
Public Ways and Facilities 8,323 8,837 5,698 (3,139) 47 5,745 Capital Outlay 2,470 1,688 1 (1,687) — 1
Other Financing Uses:
Transfers to Other Funds 358 368 378 10 (324) 54
Total Charges
to Appropriations 11,151 10,893 6,077 (4,816) (277) 5,800 Excess (Deficit) Resources
Over (Under) Appropriations $ 5,892 $ 8,918 $ 14,192 $ 5,274 $ (13,541) $ 651 192
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - City Combined - Capital Projects Fund Fiscal Year Ended June 30, 2021
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final Budget
Budget
To GAAP
Reconciliation
Actual
Amounts
GAAP
BasisOriginal Final
Budgetary Fund Balance, July 1 $ 9,727 $ 20,596 $ 1,995 $ (18,601) $ (1,995) $ — Resources (inflows):
Use of Money and Property 67 40 115 75 (210) (95) Miscellaneous 1,194 2,286 2,773 487 (2,185) 588
Other Financing Sources:
Transfers Budgeted as
Bond Proceeds 8,234 5,470 2,633 (2,837) 6,014 8,647 Total Available
for Appropriations 19,222 28,392 7,516 (20,876) 1,624 9,140 Charges to Appropriations
(outflows):
Capital Outlay 16,457 25,465 8,982 (16,483) 1,392 10,374 Other Financing Uses:
Transfers to Other Funds 1,280 2,193 5 (2,188) 173 178 Total Charges
to Appropriations 17,737 27,658 8,987 (18,671) 1,565 10,552 Excess (Deficit) Resources
Over (Under) Appropriations $ 1,485 $ 734 $ (1,471) $ (2,205) $ 59 $ (1,412) 193
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194
CITY OF FRESNO, CALIFORNIA
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2021
(in thousands)
Business-Type Activities - Enterprise Funds
Community
Sanitation
Parks and
Recreation
Total Nonmajor
Enterprise Funds
Assets
Current Assets:
Cash and Investments $ 2,693 $ 1 $ 2,694
Interest Receivable 12 2 14
Accounts Receivable, Net 1,743 — 1,743
Prepaid Items 6 — 6
Total Current Assets 4,454 3 4,457
Noncurrent Assets:
Restricted:
Cash and Investments — 781 781
Total Restricted Assets — 781 781
Other Assets:
Other Assets — 15 15
Net Pension Asset 639 — 639
Total Other Assets 639 15 654
Capital Assets:
Land and Intangibles — 12 12
Buildings, Systems and Improvements — 3,812 3,812
Machinery and Equipment 67 — 67
Less Accumulated Depreciation (59) (2,040) (2,099)
Total Capital Assets, Net 8 1,784 1,792
Total Noncurrent Assets 647 2,580 3,227
Total Assets 5,101 2,583 7,684
Deferred Outflows of Resources
Charge on Refunding — 56 56
Deferred Outflows - Pensions 1,954 — 1,954
Deferred Outflows - OPEB 488 — 488
Total Deferred Outflows of Resources 2,442 56 2,498
Liabilities
Current Liabilities:
Accrued Liabilities 196 207 403
Accrued Compensated Absences and HRA 50 1 51
Due to Other Funds 265 470 735
Bonds Payable — 55 55
Total Current Liabilities 511 733 1,244
Noncurrent Liabilities:
Accrued Compensated Absences and HRA 447 5 452
Bonds Payable — 1,564 1,564
Net OPEB Liability 1,876 — 1,876
Total Noncurrent Liabilities 2,323 1,569 3,892
Total Liabilities 2,834 2,302 5,136
Deferred Inflows of Resources
Unamortized Pension Expense 22 — 22
Unamortized OPEB Expense 317 — 317
Total Deferred Inflows of Resources 339 — 339
Net Position
Net Investment in Capital Assets 8 221 229
Unrestricted 4,362 116 4,478
Total Net Position $ 4,370 $ 337 $ 4,707
195
CITY OF FRESNO, CALIFORNIA
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Business-Type Activities - Enterprise Funds
Community
Sanitation
Parks and
Recreation
Total Nonmajor
Enterprise Funds
Operating Revenues:
Charges for Services $ 8,786 $ 411 $ 9,197
Operating Expenses:
Cost of Services 5,694 257 5,951
Administration 2,696 69 2,765
Depreciation 3 182 185
Total Operating Expenses 8,393 508 8,901
Operating Income (Loss) 393 (97) 296
Non-Operating Revenue (Expenses):
Interest Income 31 7 38
Net Increase (Decrease) in Cash Fair Value (36) — (36) Interest Expense — (63) (63)
Total Non-Operating Revenue (Expenses) (5) (56) (61) Income (Loss) Before Transfers 388 (153) 235
Transfers In 747 — 747
Transfers Out (1,082) — (1,082)
Change in Net Position 53 (153) (100)
Total Net Position - Beginning 4,317 490 4,807
Total Net Position - Ending $ 4,370 $ 337 $ 4,707
196
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Business-Type Activities - Enterprise Funds
Community
Sanitation
Parks and
Recreation
Total Nonmajor
Enterprise Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 9,411 $ 975 $ 10,386
Cash Payments to Suppliers for Services (2,132) (87) (2,219) Cash Paid for Interfund Services Used (1,939) (7) (1,946) Cash Payments to Employees for Services (4,773) (37) (4,810) Net Cash Provided by (Used for) Operating Activities 567 844 1,411
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Interest Payments on Capital Debt — (80) (80)
Payment for Cost of Issuance — 6 6
Principal Payments on Capital Debt-Bonds — (55) (55) Acquisition and Construction of Capital Assets — 19 19 Net Cash Provided by (Used for) Capital and Related Financing Activities — (110) (110)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:
Borrowing Receipt from (Payment to) Other Funds — (469) (469) Transfers In 747 — 747
Transfers Out (1,082) — (1,082)
Net Cash Provided by (Used for) Non-Capital Financing
Activities (335) (469) (804)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and Dividends Received (Paid) on Investments (7) 7 — Net Cash Provided by (Used for) Investing Activities (7) 7 — Net Increase (Decrease) in Cash and Cash Equivalents 225 272 497 Cash and Cash Equivalents, Beginning of Year 2,468 510 2,978 Cash and Cash Equivalents, End of Year $ 2,693 $ 782 $ 3,475 197
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Fiscal Year Ended June 30, 2021 (Continued)
Business-Type Activities - Nonmajor Enterprise Funds
Community
Sanitation
Parks and
Recreation
Total Nonmajor
Enterprise Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities:
Operating income (loss) $ 393 $ (97) $ 296
Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation expense 3 182 185
Change in assets and liabilities:
Decrease (increase) in accounts receivable (275) — (275) Decrease (increase) in prepaid items (6) — (6)
Decrease (increase) in net pension asset and deferred outflows pensions 714 — 714 Decrease (increase) in prepaid insurance — 1 1
(Decrease) increase in accounts payable (107) 181 74 (Decrease) increase in salaries payable 9 13 22
(Decrease) increase in due to other funds (25) 564 539 (Decrease) increase in net OPEB liability 54 — 54
(Decrease) increase in deferred inflows of resources pensions (193) (193) Net Cash Provided by (Used for) Operating Activities $ 567 $ 844 $ 1,411 Reconciliation of Cash and Cash Equivalents to
the Statement of Net Position:
Cash and Investments:
Unrestricted $ 2,693 $ 1 $ 2,694
Restricted - Current and Noncurrent — 781 781
Cash and Cash Equivalents at End of Year on Statement
of Cash Flows $ 2,693 $ 782 $ 3,475
Noncash Investing, Capital, and Financing Activities:
Amortization of bond premium, discount and loss on refunding — (17) (17) Decrease (increase) in fair value of investments (35) — (35) 198
CITY OF FRESNO, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
(in thousands)
Billing
and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Totals
Assets
Current Assets:
Cash and Investments $ 3,307 $ 54,589 $ 12,870 $ 31,323 $ — $ 102,089 Interest Receivable 85 176 73 164 — 498
Accounts Receivable, Net 1,421 22 208 — — 1,651
Inventories — 887 — — — 887
Prepaid Items — 560 25 — — 585
Due from Other Funds — 3,973 — — — 3,973
Total Current Assets 4,813 60,207 13,176 31,487 — 109,683 Noncurrent Assets:
Restricted:
Cash and Investments 5,189 — 842 — — 6,031
Total Restricted Assets 5,189 — 842 — — 6,031
Other Assets:
Net Pension Asset 150 606 — — — 756
Total Other Assets 150 606 — — — 756
Capital Assets:
Buildings, Systems & Improvements — 6,617 — — — 6,617 Machinery & Equipment 121 128,252 — — — 128,373
Construction in Progress 102 26,430 — — — 26,532
Less Accumulated Depreciation (121) (79,081) — — — (79,202) Total Capital Assets, Net 102 82,218 — — — 82,320 Total Noncurrent Assets 5,441 82,824 842 — — 89,107 Total Assets 10,254 143,031 14,018 31,487 — 198,790 Deferred Outflows of Resources
Pension Contributions 644 1,683 — — — 2,327
Deferred Outflows - Pension 2,547 6,755 — — — 9,302 Deferred Outflows - OPEB 915 1,562 127 — — 2,604
Total Deferred Outflows of Resources 4,106 10,000 127 — — 14,233 Liabilities
Current Liabilities:
Accrued Liabilities 1,710 4,926 1,199 326 — 8,161 Accrued Compensated Absences & HRA 132 363 38 — — 533 Liability for Self-Insurance — — 40,538 6,500 — 47,038 Unearned Revenue 978 577 — — — 1,555
Due to Other Funds 23 7,036 — — — 7,059
Capital Lease Obligations — 6,276 — — — 6,276
Total Current Liabilities 2,843 19,178 41,775 6,826 — 70,622 Noncurrent Liabilities:
Accrued Compensated Absences & HRA 1,801 3,139 116 — — 5,056 Capital Lease Obligations — 16,559 — — — 16,559
Liability for Self-Insurance — — 145,195 — — 145,195 Net OPEB Liability 3,795 6,335 429 — — 10,559
Deposits Held for Others 4,484 — — — — 4,484
Total Noncurrent Liabilities 10,080 26,033 145,740 — — 181,853 Total Liabilities 12,923 45,211 187,515 6,826 — 252,475 Deferred Inflows of Resources
Unamortized Pension Expense 32 74 — — — 106
Unamortized OPEB Expense 620 1,045 77 — — 1,742
Total Deferred Inflows of Resources 652 1,119 77 — — 1,848 Net Position
Net Investment in Capital Assets 102 60,232 — — — 60,334 Unrestricted (Deficit) 683 46,469 (173,447) 24,661 — (101,634) Total Net Position (Deficit) $ 785 $ 106,701 $ (173,447) $ 24,661 $ — $ (41,300) 199
CITY OF FRESNO, CALIFORNIA
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Billing
and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Totals
Operating Revenues:
Charges for Services $ 6,502 $ 75,067 $ 39,543 $ 50,973 $ 8,245 $ 180,330 Operating Expenses:
Cost of Services 6,822 38,639 64,417 42,120 7,666 159,664 Administration 2,191 13,981 7,093 6,858 579 30,702 Depreciation — 9,635 — — — 9,635
Total Operating Expenses 9,013 62,255 71,510 48,978 8,245 200,001 Operating Income (Loss) (2,511) 12,812 (31,967) 1,995 — (19,671) Non-Operating Revenue (Expenses):
Interest Income 237 490 161 444 — 1,332
Net Increase (Decrease) in Cash Fair Value (197) (562) (160) — — (919) Interest Expense — (773) — — — (773)
Gain (loss) on Disposal of Capital Assets — (889) — — — (889) Total Non-Operating Revenue (Expenses) 40 (1,734) 1 444 — (1,249) Income (Loss) Before Contributions &
Transfers (2,471) 11,078 (31,966) 2,439 — (20,920) Capital Contributions — — — — — —
Transfers In 77 7,420 21 — — 7,518
Transfers Out (362) (2,032) (1,032) — — (3,426)
Change in Net Position (2,756) 16,466 (32,977) 2,439 — (16,828) Total Net Position (Deficit) - Beginning 3,541 90,235 (140,470) 22,222 — (24,472) Total Net Position (Deficit) - Ending $ 785 $ 106,701 $ (173,447) $ 24,661 $ — $ (41,300) 200
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Billing and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 3,562 $ 51,974 $ — $ 11,637 $ 5,219 $ 72,392 Cash Received from Interfund Services Provided 3,743 26,476 57,191 39,336 2,542 129,288 Cash Payments from (to) Suppliers for Services (166) (30,982) (6,869) (4,440) (607) (43,064) Cash Paid for Interfund Services Used (1,910) (5,103) (682) — — (7,695) Cash Payments to Employees for Services (7,078) (18,333) (4,609) — — (30,020) Cash Payments for Claims and Refunds — — (42,001) (42,120) (7,154) (91,275) Net Cash Provided by (Used for) Operating
Activities (1,849) 24,032 3,030 4,413 — 29,626
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Capital Contributions — 6,185 — — — 6,185
Interest Payments on Capital Debt — (732) — — — (732) Principal Payments on Capital Lease Obligations — (5,882) — — — (5,882) Proceeds from Sale of Capital Assets — 514 — — — 514 Acquisition and Construction of Capital Assets (96) (25,368) — — — (25,464) Net Cash Provided by (Used for) Capital and
Related Financing Activities (96) (25,283) — — — (25,379)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
Borrowing Receipt from (Payment to) Other Funds — 2,592 — — — 2,592 Transfers In 77 7,421 20 — — 7,518
Transfers Out (362) (2,032) (1,031) — — (3,425)
Net Cash Provided by (Used for) Non-Capital
Financing Activities (285) 7,981 (1,011) — — 6,685 CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and Dividends Received (Paid) on Investments 66 (48) (6) 448 — 460 Net Cash Provided by (Used for) Investing
Activities 66 (48) (6) 448 — 460
Net Increase (Decrease) in Cash and Cash Equivalents (2,164) 6,682 2,013 4,861 — 11,392 Cash and Cash Equivalents, Beginning of Year 10,660 47,907 11,699 26,462 — 96,728 Cash and Cash Equivalents, End of Year $ 8,496 $ 54,589 $ 13,712 $ 31,323 $ — $ 108,120 201
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30, 2021 (Continued)
Billing and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Total
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used for) Operating Activities:
Operating income (loss) $ (2,511) $ 12,812 $ (31,967) $ 1,995 $ — $ (19,671) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense — 9,635 — — — 9,635
Change in assets and liabilities:
Decrease (increase) in accounts receivable (237) (22) (58) — — (317) Decrease (increase) in due from other funds — (694) — — — (694) Decrease (increase) in material and supplies inventory — (68) — — — (68) Decrease (increase) in prepaid items — (356) (25) — — (381) Decrease (increase) in net pension asset and deferred
outflows pensions 1,094 2,409 14 — — 3,517
(Decrease) increase in accounts payable 240 (108) (432) 18 — (282) (Decrease) increase in salaries payable 167 249 45 — — 461 (Decrease) increase in due to other funds 2 — — — — 2 (Decrease) increase in unearned revenue 166 207 — — — 373 (Decrease) increase in liability for self-insurance — — 35,425 2,400 — 37,825 (Decrease) increase in deposits (750) — — — — (750) (Decrease) increase in net OPEB liability 97 168 15 — — 280 (Decrease) increase in deferred inflows of resources
pensions (117) (200) 13 — — (304)
Net Cash Provided by (Used for) Operating
Activities $ (1,849) $ 24,032 $ 3,030 $ 4,413 $ — $ 29,626 Reconciliation of Cash and Cash Equivalents
to the Statement of Net Position:
Cash and Investments:
Unrestricted $ 3,307 $ 54,589 $ 12,870 $ 31,323 $ — $ 102,089 Restricted - Current and Noncurrent 5,189 — 842 — — 6,031 Cash and Cash Equivalents at End of Year
on Statement of Cash Flows $ 8,496 $ 54,589 $ 13,712 $ 31,323 $ — $ 108,120 Noncash Investing, Capital, and Financing Activities:
Acquisition and construction of capital assets on
accounts payable $ 6 $ 623 $ — $ — $ — $ 629
Decrease (increase) in fair value of investments (110) (672) (178) — — (960) 202
CITY OF FRESNO, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Pension Trust Funds
June 30, 2021
(in thousands)
Pension Trust Funds
Fire and Police Employees
Retirement Retirement Total
System System
Assets
Cash and Investments $ 2,692 $ 2,302 $ 4,994
Receivables:
Receivables for Investments Sold 37,898 31,370 69,268 Interest and Dividends Receivable 2,881 2,386 5,267
Other Receivables 21,642 17,915 39,557
Total Receivables 62,421 51,671 114,092
Investments, at Fair Value:
Short-Term Investments 31,684 26,233 57,917
Domestic Equity 756,804 626,488 1,383,292
Corporate Bonds 208,733 172,791 381,524
International Developed Market Equities 322,127 266,659 588,786 International Emerging Market Equities 79,063 65,449 144,512 Government Bonds 81,879 67,781 149,660
Alternatives 334,062 276,539 610,601
Real Estate 254,209 211,015 465,224
Total Investments, at Fair Value 2,068,561 1,712,955 3,781,516 Collateral Held for Securities Lent 96,292 79,711 176,003 Capital Assets, Net of Accumulated Depreciation 554 554 1,108 Other Assets 122 122 244
Total Assets 2,230,642 1,847,315 4,077,957
Liabilities
Accrued Liabilities 42,049 34,809 76,858
Collateral Held for Securities Lent 96,292 79,711 176,003 Other Liabilities 1,931 1,558 3,489
Total Liabilities 140,272 116,078 256,350
Net Position
Net Position Restricted for Pension Benefits $ 2,090,370 $ 1,731,237 $ 3,821,607 203
CITY OF FRESNO, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Pension Trust Funds
Fiscal Year Ended June 30, 2021
(in thousands)
Pension Trust Funds
Fire and Police Employees
Retirement Retirement Total
System System
Additions
Contributions:
Employer $ 26,315 $ 20,144 $ 46,459
System Members 10,256 13,750 24,006
Total Contributions 36,571 33,894 70,465
Investment Income:
Net Appreciation in Fair Value of Investments 482,149 399,865 882,014 Interest 10,226 8,482 18,708
Dividends 15,484 12,838 28,322
Other Investment Related 88 89 177
Total Investment Income 507,947 421,274 929,221
Less Investment Expense (16,439) (13,659) (30,098)
Total Net Investment Income 491,508 407,615 899,123
Securities Lending Income:
Securities Lending Earnings 296 245 541
Less Securities Lending Expense (59) (49) (108)
Net Securities Lending Income 237 196 433
Total Additions 528,316 441,705 970,021
Deductions
Benefit Payments (including post retirement supplemental benefits) 69,708 67,497 137,205
Refund of Contributions 1,255 1,749 3,004
General and Administrative Expenses 2,282 2,059 4,341 Total Deductions 73,245 71,305 144,550
Change in Net Position 455,071 370,400 825,471
Net Position - Beginning 1,635,299 1,360,837 2,996,136 Net Position - Ending $ 2,090,370 $ 1,731,237 $ 3,821,607 204
CITY OF FRESNO, CALIFORNIA
Combining Statement of Changes in Assets and Liabilities Custodial Funds
Fiscal Year Ended June 30, 2021
(in thousands)
CITY DEPARTMENTAL FUND
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Assets
Cash and Investments $ 10,195 $ 370,162 $ 377,869 $ 2,488 Interest Receivable 26 159 176 9
Due From Other Funds — — — —
Due From Other Governments — — — —
Total Assets $ 10,221 $ 370,321 $ 378,045 $ 2,497
Liabilities
Accrued Liabilities $ 275 $ 364,853 $ 365,059 $ 69
Due to Other Funds — — — —
Deposits Held for Others 9,946 15,431 22,949 2,428
Total Liabilities $ 10,221 $ 380,284 $ 388,008 $ 2,497
SPECIAL ASSESSMENTS DISTRICT FUND
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Assets
Cash and Investments $ — $ 385 $ 205 $ 180
Restricted Cash and Investments Held by Fiscal Agent 807 — 213 594 Interest Receivable — 1 1 —
Due from Other Governments 790 766 790 766
Total Assets $ 1,597 $ 1,152 $ 1,209 $ 1,540
Liabilities
Deposits Held for Others $ 1,597 $ 1,151 $ 1,208 $ 1,540 Total Liabilities $ 1,597 $ 1,151 $ 1,208 $ 1,540
TOTAL CUSTODIAL FUNDS
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Assets
Cash and Investments $ 10,195 $ 370,547 $ 378,074 $ 2,668 Restricted Cash and Investments Held by Fiscal Agent 807 — 213 594 Interest Receivable 26 160 177 9
Due from Other Funds — — — —
Due from Other Governments 790 766 790 766
Total Assets $ 11,818 $ 371,473 $ 379,254 $ 4,037
Liabilities
Accrued Liabilities $ 275 $ 364,853 $ 365,059 $ 69
Due To Other Funds — — — —
Deposits Held for Others 11,543 16,582 24,157 3,968 Total Liabilities $ 11,818 $ 381,435 $ 389,216 $ 4,037
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Statistical Section
This section of the City's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. (pages 208-212) Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source: The property tax. (pages 213-216)
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. (pages 217-225) Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. (pages 226-227) Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. (pages 228-232)
Source(s):
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2021 207
CITY OF FRESNO, CALIFORNIA
Net Position By Component
Last Ten Fiscal Years
(dollars in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities
Net Investment in Capital
Assets $ 742,533 $ 733,961 $ 744,074 $ 771,198 $ 795,884 $ 787,522 $ 796,242 $ 793,963 $ 787,395 $ 794,759 Restricted 123,401 125,618 141,123 146,174 151,345 168,927 171,473 178,858 239,898 304,925 Unrestricted (Deficit) (240,718) (235,759) (215,416) (86,424) (22,058) 28,252 43,380 105,676 27,932 (76,811) Total Governmental
Activities $ 625,216 $ 623,820 $ 669,781 $ 830,948 $ 925,171 $ 984,701 $ 1,011,095 $ 1,078,497 $ 1,055,225 $ 1,022,873 Business-Type Activities
Net Investment in Capital
Assets $ 853,405 $ 829,455 $ 835,290 $ 841,773 $ 896,818 $ 955,128 $ 958,169 $ 1,054,185 $ 1,090,352 $ 1,120,876 Restricted — — — — — — — — — —
Unrestricted (Deficit) 148,776 219,983 264,090 300,296 307,315 353,436 440,872 414,184 472,210 460,988 Total Business-Type
Activities $ 1,002,181 $ 1,049,438 $ 1,099,380 $ 1,142,069 $ 1,204,133 $ 1,308,564 $ 1,399,041 $ 1,468,369 $ 1,562,562 $ 1,581,864 Primary Government
Net Investment in Capital
Assets $ 1,595,938 $ 1,563,416 $ 1,579,364 $ 1,612,971 $ 1,692,702 $ 1,742,650 $ 1,754,411 $ 1,848,148 $ 1,877,747 $ 1,915,635 Restricted 123,401 125,618 141,123 146,174 151,345 168,927 171,473 178,858 239,898 304,925 Unrestricted (Deficit) (91,942) (15,776) 48,674 213,872 285,257 381,688 484,252 519,860 500,142 384,177 Total Primary
Government $ 1,627,397 $ 1,673,258 $ 1,769,161 $ 1,973,017 $ 2,129,304 $ 2,293,265 $ 2,410,136 $ 2,546,866 $ 2,617,787 $ 2,604,737 Source(s): City of Fresno, Finance Department
Fiscal Years
$ Dollars
Governmental Activities
Net Investment in Capital Assets
Restricted
Unrestricted
2012201320142015201620172018201920202021
$-400,000,000
$-200,000,000
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
Fiscal Years
$ Dollars
Business-Type Activities
Net Investment in Capital Assets
Restricted
Unrestricted
2012201320142015201620172018201920202021
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
208
CITY OF FRESNO, CALIFORNIA
Change in Net Position
Last Ten Fiscal Years
(dollars in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities:
General Government $ 23,820 $ 34,308 $ 26,997 $ 28,590 $ 32,206 $ 44,157 $ 31,319 $ 42,785 $ 46,114 $ 90,218 Public Protection 208,649 190,050 192,124 177,829 187,733 196,006 206,163 214,903 271,085 305,172 Public Ways and Facilities 75,281 69,771 68,914 64,430 60,875 72,984 76,289 80,369 93,243 123,068 Culture and Recreation 16,294 16,704 17,895 20,036 20,223 23,500 19,771 23,809 26,039 30,882 Community Development 15,986 26,280 23,757 29,257 28,789 28,913 30,412 29,188 31,102 41,053 Redevelopment 8,308 — — — — — — — — —
Interest on Long-Term Debt 22,426 21,037 20,275 19,519 18,787 18,658 14,413 14,101 13,652 12,552 Total Governmental Activities 370,764 358,150 349,962 339,661 348,613 384,218 378,367 405,155 481,235 602,945 Business-Type Activities:
Water System 67,577 60,749 63,375 62,205 64,454 63,753 73,677 94,066 101,406 100,181 Sewer System 60,003 63,736 65,145 66,148 63,980 64,124 65,991 71,793 65,166 74,428 Solid Waste Management 43,286 30,257 33,345 32,976 26,650 26,605 30,353 31,702 36,915 41,713 Transit 49,670 48,398 45,287 45,435 44,191 47,958 53,937 57,864 62,016 66,135 Airports 27,154 32,413 28,498 28,164 28,509 29,938 31,192 33,262 35,984 41,090 Fresno Convention Center 10,919 14,928 9,982 10,147 9,750 10,798 8,856 8,701 7,108 5,096 Community Sanitation 6,493 7,848 7,949 8,235 6,904 8,978 10,077 10,093 9,147 8,698 Parking 5,059 — — — — — — — — —
Parks and Recreation 1,036 812 372 340 316 410 283 502 586 572 Development Services 9,741 — — — — — — — — —
Stadium 3,544 3,463 3,336 3,266 3,191 3,539 2,710 2,600 2,702 2,739 Total Business-Type Activities 284,482 262,604 257,289 256,916 247,945 256,103 277,076 310,583 321,030 340,652 Total Primary Government Expenses $ 655,246 $ 620,754 $ 607,251 $ 596,577 $ 596,558 $ 640,321 $ 655,443 $ 715,738 $ 802,265 $ 943,597 Program Revenues
Governmental Activities:
Charges for Services:
General Government $ 16,545 $ 18,634 $ 17,038 $ 23,194 $ 22,580 $ 46,742 $ 17,171 $ 19,075 $ 14,805 $ 15,315 Public Protection 19,720 20,924 18,898 31,872 44,037 22,382 32,275 40,945 15,599 16,544 Public Ways and Facilities 13,470 16,669 14,898 17,426 20,468 21,911 21,009 20,461 22,219 27,060 Culture and Recreation 809 3,021 4,680 4,577 4,949 3,645 3,935 3,711 1,742 1,364 Community Development 2,568 19,529 19,432 21,130 25,239 23,496 23,033 20,347 19,400 13,050 Operating Grants and Contributions 54,974 36,639 48,503 39,550 34,015 25,016 26,488 40,278 39,037 40,393 Capital Grants and Contributions 29,730 35,623 49,651 62,472 57,955 44,586 38,584 37,525 49,161 135,064 Total Governmental Activities Program
Revenues 137,816 151,039 173,100 200,221 209,243 187,778 162,495 182,342 161,963 248,790 Business-Type Activities:
Charges for Services:
Water System 69,269 71,667 90,096 74,285 77,959 101,895 107,377 119,029 120,252 127,651 Sewer System 76,726 76,324 76,201 81,955 78,186 83,635 81,651 81,085 77,249 77,940 Solid Waste Management 38,271 29,797 29,404 31,208 31,975 31,170 30,100 31,804 29,546 29,132 Transit 10,770 11,054 10,914 13,089 12,479 11,452 10,746 9,348 2,516 (2,328) Airports 21,563 23,329 24,991 25,670 27,646 27,835 29,634 32,011 29,192 25,991 Fresno Convention Center 2,667 2,594 2,626 2,960 3,634 3,752 3,318 3,796 2,415 (2) Community Sanitation 8,918 9,108 8,956 9,746 9,733 9,613 9,422 9,841 8,982 8,786 Parking 5,270 — — — — — — — — —
Parks and Recreation 781 736 329 329 325 340 323 410 278 411 Development Services 8,395 — — — — — — — — —
Stadium 1,251 1,089 798 1,248 677 1,082 238 406 344 580 Operating Grants and Contributions 42,361 40,850 44,211 40,215 29,190 37,187 22,939 37,910 80,766 56,334 Capital Grants and Contributions 43,505 22,224 14,754 14,791 18,015 47,576 69,570 33,249 38,027 29,884 Total Business-Type Activities Program
Revenues 329,747 288,772 303,280 295,496 289,819 355,537 365,318 358,889 389,567 354,379 Total Primary Government Program
Revenues $ 467,563 $ 439,811 $ 476,380 $ 495,717 $ 499,062 $ 543,315 $ 527,813 $ 541,231 $ 551,530 $ 603,169 209
CITY OF FRESNO, CALIFORNIA
Change in Net Position
Last Ten Fiscal Years (Continued)
(dollars in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (Expense)/Revenue
Governmental Activities $ (232,948) $ (207,111) $ (176,862) $ (139,440) $ (139,370) $ (196,440) $ (215,872) $ (222,813) $ (319,272) $ (354,155) Business-Type Activities 45,265 26,168 45,991 38,580 41,874 99,434 88,242 48,306 68,537 13,727 Total Primary Government Net Expense $ (187,683) $ (180,943) $ (130,871) $ (100,860) $ (97,496) $ (97,006) $ (127,630) $ (174,507) $ (250,735) $ (340,428) General Revenues and Other Changes
in Net Position
Governmental Activities:
Property Taxes $ 100,961 $ 103,745 $ 107,635 $ 113,655 $ 117,048 $ 123,858 $ 130,109 $ 138,201 $ 142,250 $ 149,822 Sales Taxes - Shared Revenues 53,354 56,474 59,328 61,571 74,010 86,128 85,512 96,939 98,531 125,279 In-Lieu Sales Tax 17,272 18,216 19,190 19,907 10,559 — — — — — Franchise Taxes 11,720 12,503 12,751 13,469 13,722 14,335 14,811 14,493 16,101 17,729 Business Tax 16,267 16,470 18,868 17,781 16,879 19,101 20,982 18,162 20,868 20,577 Room Tax 9,088 9,560 10,019 11,006 12,045 13,127 13,936 13,998 12,453 12,566 Other Taxes 2,479 2,104 2,324 2,407 2,521 2,348 2,304 2,855 2,241 1,825 Investment Earnings 2,053 1,889 795 879 1,652 1,215 1,348 8,413 11,863 1,786 Gain on Sale of Capital Assets 1,022 416 42 402 218 214 223 2,517 2 — Special Item - Loss on Receivable/
Transfer of Assets — — — — — — (8,152) — — —
Extraordinary (Loss):
Redevelopment Agency Net Position
Distributed to Successor Agency (18,561) — — — — — — — — — Transfers: (5,991) (15,662) (5,699) (6,290) (15,061) (4,356) (4,820) (5,363) (8,309) (7,781) Total Governmental Activities 189,664 205,715 225,253 234,787 233,593 255,970 256,253 290,215 296,000 321,803 Business-Type Activities:
Investment Earnings 6,139 1,596 2,316 2,998 5,129 641 2,614 15,624 17,316 (2,206) Debt Forgiveness 1,744 — — — — — — — — —
Gain on Sale of Capital Assets 2,719 3,832 1 38 — — 36 35 31 — Transfers: 5,991 15,662 5,698 6,290 15,061 4,356 4,820 5,363 8,309 7,781 Total Business-Type Activities 16,593 21,090 8,015 9,326 20,190 4,997 7,470 21,022 25,656 5,575 Total Primary Government $ 206,257 $ 226,805 $ 233,268 $ 244,113 $ 253,783 $ 260,967 $ 263,723 $ 311,237 $ 321,656 $ 327,378 Change in Net Position
Governmental Activities $ (43,284) $ (1,397) $ 48,391 $ 95,347 $ 94,223 $ 59,530 $ 40,381 $ 67,402 $ (23,272) $ (32,352) Business-Type Activities 61,858 47,259 54,006 47,906 62,064 104,431 95,712 69,328 94,193 19,302 Total Primary Government $ 18,574 $ 45,862 $ 102,397 $ 143,253 $ 156,287 $ 163,961 $ 136,093 $ 136,730 $ 70,921 $ (13,050) Source(s): City of Fresno, Finance Department
210
CITY OF FRESNO, CALIFORNIA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable $ 12,691 $ 12,691 $ 12,691 $ 12,691 $ 12,691 $ 18,417 $ 3,919 $ 2,071 $ — $ — Restricted — 435 7 105 11 37 16 10 6 —
Committed 1,481 1,903 2,351 5,207 1,610 22,104 25,565 37,004 37,718 40,655 Assigned 390 1,095 1,006 1,874 2,811 3,890 2,845 4,562 5,158 19,249 Unassigned 483 (9,355) 8,192 24,643 31,808 26,749 19,533 25,312 33,046 43,039 Total General Fund $ 15,045 $ 6,769 $ 24,247 $ 44,520 $ 48,931 $ 71,197 $ 51,878 $ 68,959 $ 75,928 $ 102,943 All other
Governmental Funds
Restricted $ 125,275 $ 128,100 $ 145,763 $ 146,002 $ 151,726 $ 163,802 $ 166,207 $ 172,587 $ 197,325 $ 255,324 Assigned 19,897 17,624 15,752 15,928 15,847 12,177 16,115 16,137 11,194 12,843 Unassigned (7,547) (5,196) (7,749) (9,670) (6,284) (788) (809) (1,950) (5,590) (56,750) Total all other
Governmental Funds $ 137,625 $ 140,528 $ 153,766 $ 152,260 $ 161,289 $ 175,191 $ 181,513 $ 186,774 $ 202,929 $ 211,417 Source(s): City of Fresno, Finance Department
211
CITY OF FRESNO, CALIFORNIA
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes $ 239,845 $ 237,956 $ 263,470 $ 276,847 $ 266,521 $ 298,425 $ 289,140 $ 315,903 $ 330,423 $ 366,645 Licenses and Permits 528 5,097 6,331 6,569 7,102 7,291 7,829 7,337 7,915 9,276 Intergovernmental 44,592 37,032 48,910 41,915 39,036 38,770 39,318 41,706 55,879 126,391 Charges for Services 36,184 49,995 46,277 44,692 46,398 49,538 51,294 57,413 53,493 64,462 Fines 1,926 4,193 3,746 3,392 4,271 3,487 3,872 3,643 3,315 1,792 Use of Money and Property 1,677 2,539 1,585 1,643 2,105 1,285 1,305 6,542 9,538 1,684 Contributions and Donations 169 — — — — — — — — — Miscellaneous 5,560 6,146 5,612 8,800 8,156 36,448 4,504 3,640 2,017 3,125 Total Revenues 330,481 342,958 375,931 383,858 373,589 435,244 397,262 436,184 462,580 573,375 Expenditures
General Government 8,273 13,039 11,742 13,841 17,490 26,257 21,285 28,077 29,286 71,211 Public Protection 191,499 187,189 185,911 188,050 201,656 212,828 221,043 226,108 243,099 256,635 Public Ways and Facilities 34,832 33,332 39,190 35,607 38,293 42,430 41,682 50,561 53,686 63,186 Culture and Recreation 11,833 13,177 14,247 15,433 17,735 16,928 18,257 18,140 20,911 26,131 Community Development 15,217 25,685 23,666 30,320 29,511 29,360 31,483 30,961 32,970 39,983 Capital Outlays 20,345 19,919 28,375 38,984 23,145 29,990 31,401 26,168 27,605 54,776 Debt Service:
Principal 17,612 17,484 17,814 19,218 17,435 19,196 17,568 18,956 19,911 21,191 Interest 22,493 21,134 20,347 19,511 18,629 17,779 14,752 14,515 13,692 12,602 Total Expenditures 322,104 330,959 341,292 360,964 363,894 394,768 397,471 413,486 441,160 545,715 Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,377 11,999 34,639 22,894 9,695 40,476 (209) 22,698 21,420 27,660 Other Financing Sources (Uses)
Transfers In 82,206 46,827 42,716 44,695 45,251 55,930 49,397 41,142 51,823 116,697 Transfers Out (87,540) (66,633) (47,267) (50,573) (49,446) (59,055) (57,418) (46,110) (59,145) (128,855) Discount on Debt Issued — — — — — 835 — — — — Issuance of Refunding Bonds — — — — — 108,903 — — — — Refunded Bond Redeemed — — — — — (128,621) — — — — Long-Term Debt Issued — — — — — — — — — 17,145 Premium on Debt Issued — — — — — 11,528 — — — 2,773 Capital Lease Financing — — 621 966 7,331 4,126 3,162 2,228 9,026 83 Proceeds for Capital Lease
Obligations — 1,088 — — — — — — — —
Sale of Capital Assets 679 1,346 8 785 609 2,046 223 2,382 — — Total Other Financing Sources
(Uses) (4,655) (17,372) (3,922) (4,127) 3,745 (4,308) (4,636) (358) 1,704 7,843 Special Item
Loss on Receivable — — — — — (8) — — — —
Net Change in Fund Balances $ 3,722 $ (5,373) $ 30,717 $ 18,767 $ 13,440 $ 36,160 $ (4,845) $ 22,340 $ 23,124 $ 35,503 Debt Service as a Percentage of
Non-Capital Expenditures 13.10 % 12.35 % 12.45 % 11.94 % 11.00 % 10.29 % 9.11 % 8.83 % 8.16 % 6.55 % Source(s): City of Fresno, Finance Department
Note(s): To properly calculate the ratio of total debt service expenditures to non-capital expenditures, only governmental fund expenditures for the acquisition and construction of assets that are classified as capital assets for reporting in the Government-Wide Financial Statements have been subtracted from the total governmental fund expenditures. These figures by fiscal year are as follows: (2012) $15,973,001; (2013) $18,151,306; (2014) $34,893,624; (2015) $46,135,229; (2016) $35,295,704; (2017) $35,500,989; (2018) $42,738,629; (2019) $34,667,433; (2020) $29,289,000 and (2021) $29,973,000. 212
CITY OF FRESNO, CALIFORNIA
Gross Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Secured Estimated
Actual
Unsecured
Estimated Actual
Total Taxable
Assessed Value
Total Direct Tax
Rate
Assessed Value as
a Percent of
Estimated Actual
Value
2012 $ 25,850,359,825 $ 1,476,938,743 $ 27,327,298,568 0.012283 100% 2013 25,446,100,571 1,511,385,533 26,957,486,104 0.012307 100 2014 26,754,005,601 1,449,421,705 28,203,427,306 0.012309 100 2015 28,638,669,937 1,444,805,569 30,083,475,506 0.012306 100 2016 30,026,361,027 1,500,061,596 31,526,422,623 0.012294 100 2017 31,344,820,623 1,596,315,117 32,941,135,740 0.012298 100 2018 32,837,504,668 1,616,397,886 34,453,902,554 0.012472 100 2019 34,713,392,408 1,899,808,202 36,613,200,610 0.012443 100 2020 36,659,070,484 1,899,510,831 38,558,581,315 0.012471 100 2021 38,644,667,812 2,225,286,118 40,869,953,930 0.012720 100 Fiscal Years
$ Dollars
Estimated Value of Taxable Property
Secured
Unsecured
2012 2013 2014 2015 2016 2015 2018 2019 2020 2021
$0
$10,000,000,000
$20,000,000,000
$30,000,000,000
$40,000,000,000
Source(s): County of Fresno
Note(s): Fresno County does not collect Actual Value (Market Value) information on taxable properties or on tax exempt properties. The estimated actual value of taxable property is the same as the gross assessed value. 213
CITY OF FRESNO, CALIFORNIA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Percentage per $100 of Assessed Value)
Overlapping Rates
City Direct Rate Schools
Fiscal Year Property Tax
Rate
Fresno
Pension
Total Direct
Tax Rate
Fresno
Unified
School
District
State Center
Community
College
District
Total Direct
and
Overlapping
Property Tax
Rate
2012 1.0 0.032438 1.032438 0.188800 0.007070 1.228308 2013 1.0 0.032438 1.032438 0.188860 0.009358 1.230656 2014 1.0 0.032438 1.032438 0.188834 0.009602 1.230874 2015 1.0 0.032438 1.032438 0.188860 0.009308 1.230606 2016 1.0 0.032438 1.032438 0.188860 0.008064 1.229362 2017 1.0 0.032438 1.032438 0.188864 0.008480 1.229782 2018 1.0 0.032438 1.032438 0.188864 0.025934 1.247236 2019 1.0 0.032438 1.032438 0.188864 0.022966 1.244268 2020 1.0 0.032438 1.032438 0.178012 0.025786 1.236236 2021 1.0 0.032438 1.032438 0.188864 0.025786 1.247088 Source(s): County of Fresno
Note(s): On June 6, 1978, California voters approved a constitutional amendment to Article XIIIA of the California Constitution, commonly known as Proposition 13, which limits the taxing power of California public agencies. Legislation enacted by the California Legislature to implement Article XIIIA (Statutes of 1978, Chapter 292, as amended) provides that, notwithstanding any other law, local agencies may not levy any property tax except to pay debt service on indebtedness approved by voters prior to July 1, 1978, and that each county will levy the maximum tax permitted by Article XIIIA of $1.00 per $100.00 of full cash value. Assessed value is equal to full cash value, pursuant to Senate Bill 1656, Statutes of 1978.
214
CITY OF FRESNO, CALIFORNIA
Principal Property Taxpayers
Current Year and Nine Years Ago
2021 2012
Taxpayer Type of Business
Taxable
Assessed
Value
Rank
% of Total
County
Assessed
Value
Taxable
Assessed
Value
Rank
% of Total
County
Assessed
Value
River Park Properties Commercial, Unsecured,
Miscellaneous $ 190,555,833 1 0.47 % $ 139,526,115 2 0.51 % Amazon.com Services Inc. No Secured Property 173,505,100 2 0.42 % — — — % Gap Inc. Commercial 170,468,200 3 0.42 % 147,976,891 1 0.54 % Macerich Fresno Limited Partnership Commercial 145,987,480 4 0.36 % 130,073,974 3 0.48 % Gallo E & J Winery Commercial, Agricultural,
Unsecured, Misc. 141,900,221 5 0.35 % 101,498,024 4 0.37 % Meganova LP Apartments/Condos,
Commercial 133,279,987 6 0.33 % — — —
RPI Fig Garden LP Commercial 116,707,336 7 0.29 % — — — Saint Agnes Medical Center Medical/Dental,
Miscellaneous 109,453,447 8 0.27 % — — —
Colony 2019-3 Bulk Industrial LLC Commercial 99,552,000 9 0.24 % — — — % Foster Poultry Farms Industrial, Commercial 78,361,122 10 0.19 % — — — % Comcast of Fresno Inc. — — — 94,756,900 5 0.35 %
Donahue Schriber Realty Group — — — 62,100,000 6 0.23 % Capri Sun Inc. — — — 56,664,419 7 0.21 %
M L Street Properties — — — 51,276,779 8 0.19 %
Granum Family Trust — — — 51,051,872 9 0.19 %
Zinkin De Wayne Sandra — — — 50,131,711 10 0.18 %
Total $ 1,359,770,726 3.3400 % $ 885,056,685 3.2500 % Source(s): Avenu Insights & Analytics and California Municipal Statistics, Inc., as compiled by Willdan Financial Services.
Note(s): 2020/21 Taxable Assessed Valuation: $40,869,953,930. 2011/12 Taxable Assessed Valuation: $27,327,298,568.
215
CITY OF FRESNO, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
Current Tax Collections
Fiscal
Year
Total Net
Tax Levy
(Original
Levy)
Supplemental
Assessments
Redevelopment
Return of
Increment
Total
Adjusted
Tax Levy
Amount
Collected
Percentage
of Net Tax
Levy
Delinquent
Tax
Collections
Total Tax
Collections
Percent of
Collection
of Adjusted
Tax Levy
2012 $ 87,016,755 $ 9,969,282 $ 589,134 $ 97,575,171 $ 96,163,705 98.55 % $ 1,411,466 $ 97,575,171 100.00 % 2013 86,530,712 10,098,582 2,478,235 99,107,529 98,239,898 99.12 867,631 99,107,529 100.00 2014 90,601,174 9,698,694 2,171,963 102,471,831 101,452,992 99.01 421,496 101,874,488 99.42 2015 96,468,363 11,900,327 1,609,109 109,977,799 106,989,456 97.28 395,578 107,385,034 97.64 2016 100,946,941 12,082,212 2,306,017 115,335,170 113,633,713 98.52 508,181 114,141,894 98.97 2017 105,199,432 13,077,130 2,014,329 120,290,891 119,336,199 99.21 386,236 119,722,435 99.53 2018 109,890,834 13,565,677 2,278,284 125,734,795 123,764,163 98.43 649,161 124,413,324 98.95 2019 116,141,387 14,916,496 2,786,268 133,844,151 132,157,601 98.74 543,876 132,701,477 99.15 2020 122,120,737 14,809,607 3,366,768 140,297,112 136,883,021 97.57 745,241 137,628,262 98.10 2021 128,697,400 17,130,950 5,378,795 151,207,145 144,896,990 95.83 1,443,494 146,340,484 96.78 Average
Collections 98.85 %
Source(s): County of Fresno
Note(s):
Supplemental Assessments include voter approved indebtedness for Fire and Police Pensions and supplemental assessments added whenever new construction is completed and whenever real property changes ownership under Chapter 3.5 of Part 0.5 of Division 1 of the California Revenue and Taxation Code.
Beginning in fiscal year 2014, Delinquent Tax Collections do not include penalties and interest. Property tax collection for fiscal years prior to fiscal year 2014 have been adjusted so as not to exceed the levy.
Beginning in fiscal year 2014, collections only reflect those dollars that are related to the fiscal period in which the tax was levied. 216
CITY OF FRESNO, CALIFORNIA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Governmental Activities Business-Type Activities
Fiscal
Year
General
Obligation
Bonds
Lease
Revenue
Bonds
Tax
Allocation
Bonds
Certificates
of
Participation
Notes
Payable
Capital
Leases
Airport
Revenue
Bonds
Solid
Waste
Revenue
Bonds
Sewer
Revenue
Bonds
Water
Revenue
Bonds
2012 $ 166,265 $ 189,430 $ — $ — $ 6,902 $ 7,696 $ 57,461 $ — $ 229,397 $ 160,886 2013 160,278 180,456 — — 6,111 6,718 56,459 — 222,109 156,274 2014 153,930 171,806 — — 5,283 7,738 56,138 — 215,611 152,785 2015 147,177 161,435 — — 4,569 10,113 54,590 — 207,280 147,569 2016 139,999 153,279 — — 3,813 17,220 53,098 — 198,436 142,148 2017 131,840 144,697 — — 3,016 20,884 51,508 — 189,134 136,569 2018 124,245 136,021 — — 2,466 28,271 49,825 — 179,351 130,774 2019 116,160 126,191 — — 2,033 39,338 83,039 — 34,943 124,759 2020 107,555 116,139 — — 1,846 43,121 81,145 — 6,935 118,501 2021 98,395 125,464 — — 1,648 41,153 78,383 — 885 90,241 Source(s): Debt Information - City of Fresno, Finance Department Population Information - State of California Department of Finance, Demographic Research Unit Note(s): See the Schedule of Demographic and Economic Statistics for personal income and population data on page 227.
Information pertaining to Personal Income is obtained from the Bureau of Economic Analysis (BEA).
Personal income and Per Capita Personal Income figures for fiscal year 2021 are not currently available from the BEA.
The City is not obligated in any manner for the Special Assessment debt, but is acting as an agent for property owners in collecting the assessments and forwarding the collections to the trustee or paying agent and initiating foreclosure proceedings, if appropriate.
Beginning in fiscal year 2012, the Tax Allocation Bonds are no longer reported on this schedule, due to the dissolution of the Redevelopment Agency, effective February 1, 2012. The bonds are assumed by the Successor Agency. 217
CITY OF FRESNO, CALIFORNIA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years (Continued)
(dollars in thousands, except per capita)
Business-Type Activities Primary Government
Fiscal
Year
Lease
Revenue
Bonds
Accreted
Interest
Certificates
of
Participation
Notes
Payable
Capital
Leases
Total
Primary
Government
Percentage
of Personal
Income
Net Debt per
Capita
2012 $ 91,989 $ — $ — $ 11,775 $ — $ 921,801 2.82 % $ 1,825 2013 87,675 — — 46,880 — 922,960 2.77 % 1,815
2014 84,106 — — 54,929 — 902,326 2.57 % 1,750
2015 79,908 — — 52,080 — 864,721 2.31 % 1,662
2016 75,465 — — 82,795 — 866,253 2.20 % 1,664
2017 69,492 — — 208,855 — 955,995 2.33 % 1,818
2018 61,242 — — 364,624 — 1,076,819 2.51 % 2,000 2019 55,832 — — 403,612 — 985,907 2.17 % 1,837
2020 50,211 3,595 — 407,095 — 936,143 1.93 % 1,715 2021 44,362 3,355 — 424,552 — 908,438 N/A 1,661
218
CITY OF FRESNO, CALIFORNIA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt
Outstanding
Fiscal Year General Bonded
Debt
Tax Allocation
Bonds Total
Percent of
Actual Taxable
Value of
Property
Population Net Debt per
Capita
2012 $ 166,264,985 $ — $ 166,264,985 0.608 % 505,009 $ 329 2013 160,277,894 — 160,277,894 0.595 % 508,453 315 2014 153,930,355 — 153,930,355 0.546 % 515,609 299 2015 147,177,000 — 147,177,000 0.489 % 520,159 283 2016 139,998,791 — 139,998,791 0.444 % 520,453 269 2017 131,840,000 — 131,840,000 0.400 % 525,832 251 2018 124,245,000 — 124,245,000 0.361 % 538,330 231 2019 116,160,000 — 116,160,000 0.317 % 536,683 216 2020 107,555,000 — 107,555,000 0.279 % 545,769 197 2021 98,395,000 — 98,395,000 0.241 % 546,770 180
Source(s): General Bonded Debt Information - City of Fresno Department of Finance Population Information - State of California Department of Finance, Demographic Research Unit Note(s): Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
See Gross Assessed Value and Estimated Actual Value of Taxable Property schedule for property value information on page 214.
Beginning in fiscal year 2012, the Tax Allocation Bonds are no longer reported on this schedule, due to the dissolution of the Redevelopment Agency, effective February 1, 2012. The bonds were assumed by the Successor Agency. 219
CITY OF FRESNO, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
As of January 29, 2021
2020-21 Gross Assessed Valuation: $40,869,953,930
Estimated
Percent
Applicable
Debt
Applicable
Combined Direct Debt
City of Fresno Pension Obligation 100% $ 98,395,000
Lease Revenue Bonds 100 125,463,772
Notes Payable 100 1,647,921
Capital Leases 100 41,152,635
Total Combined Direct Debt 266,659,328
Overlapping Tax, and Assessment Debt
City of Fresno Community Facilities District No. 4 100% $ 815,000 City of Fresno Community Facilities District No. 5 100 690,000 City of Fresno Community Facilities District No. 7 100 1,220,000 State Center Community College District 42.828 146,906,464 Clovis Unified School District 48.452 154,174,165
Fresno Unified School District 84.64 437,474,610
Central Unified School District 81.418 120,028,641
Other School Districts Various 55,226,593
California Statewide Communities Development Authority Community Facilities District No. 2012-01 100 4,090,000 Total Overlapping Tax, and Assessment Debt 920,625,473 Overlapping General Fund Obligation Debt
Fresno County Pension Obligations 46.713% $ 100,786,190 Fresno County General Fund Obligations 46.713 14,635,183 Clovis Unified School District Certificates of Participation 48.452 9,213,148 Fresno Unified School District Certificates of Participation 84.64 9,919,808 Central Unified School District Certificates of Participation 81.418 24,221,041 Other School District Certificates of Participation Various 13,801,514 Total Overlapping General Fund Debt 172,576,884
Overlapping Tax Increment Debt (Successor Agency)
Fresno Redevelopment Mariposa Medical Project Area 100% $ 1,185,000 Total Overlapping Tax Increment Debt 1,185,000
Total Overlapping Tax and Assessment, General Fund and Tax Increment Debt 1,094,387,357 Total Overlapping and Direct Debt $ 1,361,046,685
Ratios to 2020-21 Assessed Valuation:
Combined Direct Debt 0.652 %
Overlapping Tax, and Assessment Debt 2.253 %
Combined Total Overlapping and Direct Debt 3.327 %
Overlapping Tax Increment Debt (Successor Agency) 0.003 % Note(s): Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Fresno. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
The percentage of overlapping debt applicable to the City of Fresno is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of overlapping district's taxable assessed value that is within the boundaries of the City of Fresno divided by the District's total taxable assessed value.
The Direct and Overlapping Governmental Activities Debt excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
The Overlapping Tax, Assessment Debt and General Fund Debt percentages and figures are provided by Cal Municipal Services, Inc. and are as of January 7, 2021. Direct Debt figures are provided by the Finance Department at the City of Fresno and are as of June 30, 2021. 220
CITY OF FRESNO, CALIFORNIA
Debt Coverage Ratio - Airports
Last Ten Fiscal Years (in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues (1) (2) $ 18,804 $ 19,876 $ 21,216 $ 21,802 $ 22,976 $ 24,500 $ 25,022 $ 27,308 $ 26,789 $ 33,470 Less Operating Expenses (3) 14,200 14,322 14,262 14,428 14,934 16,117 17,355 18,701 19,962 20,626 Plus: Other Available Funds (4) — 51 95 350 359 368 377 386 395 — Net Revenues $ 4,604 $ 5,605 $ 7,049 $ 7,724 $ 8,401 $ 8,751 $ 8,044 $ 8,993 $ 7,222 $ 12,844 Adjusted Debt Service
Series 2000 Bonds $ 3,011 $ 3,012 $ — $ — $ — $ — $ — $ — $ — $ — Series 2013 Bonds (5) — — 3,288 2,805 2,808 2,803 2,801 2,802 2,801 — Less
Minimum PFC Contribution (6) (1,100) (1,100) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) Bond proceeds (70) — — — — — — — — —
Additional PFC Contribution (321) (500) (231) — (200) — — — — — Net Series 2000/2013 Debt Service $ 1,520 $ 1,412 $ 1,457 $ 1,205 $ 1,008 $ 1,203 $ 1,201 $ 1,202 $ 1,201 $ (1,600) Series 2007 Bonds (5) 1,298 1,332 1,369 1,399 1,437 1,472 1,509 1,544 1,581 — 2019 Bonds (5) — — — — — — — — 2,141 —
Annual Adjusted Debt Service (7) $ 2,818 $ 2,744 $ 2,826 $ 2,604 $ 2,445 $ 2,675 $ 2,710 $ 2,746 $ 4,923 $ — Annual Adjusted Debt Service Coverage (8) 1.63 2.02 2.46 2.97 3.44 3.27 2.97 3.27 1.47 N/A Note(s):
(1) State of California law requires the exclusion of Customer Facility Charge (CFC) Revenues from the calculation of Debt Service coverage in excess of annual Debt Service on the Series 2007 Bonds. (2) Fiscal year 2021 Revenues include $7.7 million of CARES Act monies. The Indenture of Trust defines Federal operating grants as Revenues. (3) For all fiscal years, reflects Operating Expenses in operating funds only and does not include costs expensed out of Airports capital funds, such as Federal grant-funded Master Plan in fiscal year 2018 and fiscal year 2019.
(4) Per the Indenture, unencumbered funds equal to 25% of Adjusted Debt Service may be designated by the City as Other Available Funds prior to the beginning of any fiscal year, and transferred to the Revenue Fund at the beginning of such fiscal year. Since fiscal year 2015, the City's policy has been to annually designate available CFC funds equal to 25 percent of debt service associated with 2007 Bonds as Other Available Funds.
(5) Fiscal year 2021 Debt Service associated with Series 2013 Bonds, Series 2007 Bonds, and 2019 Bonds was prepaid on September 2020 with existing cash balances. (6) Under the Supplemental Indenture that authorized the 2013 Bonds, the Minimum Passenger Facility Charge (PFC) Contribution was increased from $1.1 million to $1.6 million. (7) Fiscal year 2021 Adjusted Debt Service was prepaid with existing cash balances (and was not paid with fiscal year 2021 Net Revenues). (8) Had fiscal year 2021 Adjusted Debt Service not been prepaid, fiscal year 2021 Debt Service coverage would have been 2.77. 221
CITY OF FRESNO, CALIFORNIA
Debt Coverage Ratio - Water System
Last Ten Fiscal Years (in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Charges for Services and Other Operating Revenue $ 69,269 $ 71,667 $ 90,096 $ 74,285 $ 77,959 $ 101,895 $ 107,377 $ 119,029 $ 120,252 $ 127,651 Less: Connection Fee Charges for Services (1,084) (1,331) (1,667) (1,496) (1,563) (1,917) (2,531) (2,138) (2,596) (1,835) Net Charges for Services (1) 68,185 70,336 88,429 72,789 76,396 99,978 104,846 116,891 117,656 125,816 Other Operating Revenues and Interest Income 1,533 720 329 573 1,147 17 (238) 4,974 6,906 (627) Total Revenues 69,718 71,056 88,758 73,362 77,543 99,995 104,608 121,865 124,562 125,189 Operating Expenses
Labor and Benefits 12,517 12,679 13,525 11,378 12,437 12,401 12,176 14,581 13,075 15,428 Pumping Power 8,986 9,113 9,292 8,501 8,150 9,064 9,550 8,358 9,419 10,252 Source of Supply 7,748 6,318 1,780 5,613 6,630 4,188 9,751 6,536 9,027 6,531 All Other Operating and Maintenance (2) 18,386 16,821 18,151 17,473 17,166 21,547 17,692 35,143 26,148 24,728 Total Operating Expenses (3) 47,637 44,931 42,748 42,965 44,383 47,200 49,169 64,618 57,669 56,939 Net Current Revenue $ 22,081 $ 26,125 $ 46,010 $ 30,397 $ 33,160 $ 52,795 $ 55,439 $ 57,247 $ 66,893 $ 68,250 Senior Bond Debt Service (4) $ 1,374 $ 1,376 $ 1,378 $ 1,374 $ 1,381 $ 1,380 $ 1,376 $ 1,379 $ 1,379 $ — State Loans Debt Service (5) 265 259 120 120 120 — — — — — Total Senior Debt Service 1,639 1,635 1,498 1,494 1,501 1,380 1,376 1,379 1,379 — Senior Coverage Ratio 13.47 15.98 30.71 20.35 22.09 38.26 40.29 41.51 48.51 49.49 Net Revenue Available for Parity Debt Service $ 20,442 $ 24,490 $ 44,512 $ 28,903 $ 31,659 $ 51,415 $ 54,063 $ 55,868 $ 65,514 $ 68,250 2010 Series A Bond Debt Service (6) $ 12,515 $ 12,507 $ 12,509 $ 12,509 $ 12,531 $ 12,508 $ 12,509 $ 12,504 $ 12,510 $ 7,020 State Loans Debt Service (5) 75 338 338 2,770 2,786 3,533 6,021 10,937 18,562 16,190 Total Parity Debt Service $ 12,590 $ 12,845 $ 12,847 $ 15,279 $ 15,317 $ 16,041 $ 18,530 $ 23,441 $ 31,072 $ 23,210 Parity Coverage Ratio 1.63 1.91 3.46 1.89 2.07 3.21 2.92 2.38 2.11 2.94 Note(s): (1) 1993 Indenture defines "Current Revenues" as all revenue from the operation of the Water System except for connection fees and charges. (2) All other operating and Maintenance includes Fleet Depreciation Charge (vehicle replacement fees paid to the Fleet Department). (3) 1993 Indenture defines "Maintenance and Operation Costs" as all costs incurred for maintaining and operating the Water System except for Debt Service, Depreciation and Amortization. (4) 2003 Water Bonds were the only remaining Senior Bond Debt Service after FY 2016, and were paid off in fiscal year 2020. (5) State Loan Debt Service.
(6) Paid off remaining 2010 Series A-1 Bonds in fiscal year 2021 with surplus cash. 222
CITY OF FRESNO, CALIFORNIA
Debt Coverage Ratio - Sewer System
Last Ten Fiscal Years (in thousands)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Charges for Services (1) $ 76,726 $ 76,324 $ 76,201 $ 81,955 $ 78,186 $ 83,635 $ 81,651 $ 81,085 $ 77,249 $ 77,940 Interest Income 3,797 485 1,547 1,787 2,779 492 2,046 5,548 4,702 (720) Less: Wastewater Facility Connection Fee (1,133) (1,853) (1,981) (1,709) (1,844) (1,968) (1,996) (3,290) (2,600) (3,426) Total Senior Lien Revenues 79,390 74,956 75,767 82,033 79,121 82,159 81,701 83,343 79,351 73,794 Operating Expenses (2) 36,858 36,431 36,339 37,391 35,935 38,058 37,237 45,835 43,522 44,630 Net Income Before Debt Service $ 42,532 $ 38,525 $ 39,428 $ 44,642 $ 43,186 $ 44,101 $ 44,464 $ 37,508 $ 35,829 $ 29,164 Senior Lien Debt Service (3) 10,737 10,724 10,714 10,695 10,387 10,712 10,701 10,684 373 6,234 Coverage Ratio (4) 3.96 3.59 3.68 4.17 4.16 4.12 4.16 3.51 96.06 4.68 100% Coverage-Subordinate Lien:
Net Current Revenue after Senior Lien Debt (before Connection Fees) $ 31,795 $ 27,801 $ 28,714 $ 33,947 $ 32,799 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 Available from Senior Lien Revenues $ 31,796 $ 27,801 $ 28,714 $ 33,947 $ 32,799 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 Subordinate Lien Debt Service (5) $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 667 $ 2,280 $ — State Loan Debt Service (6) — — — — — — 1,280 1,286 2,573 1,286 Coverage Ratio 4.00 3.50 3.61 4.27 4.13 4.20 4.25 40.22 7.31 17.83 120% & 125% Coverage Subordinate Lien:
Net Current Revenue (Excluding Connection Fees) $ 31,796 $ 27,801 $ 28,714 $ 33,947 $ 32,799 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 Wastewater Facility Connection Fee 1,133 1,853 1,981 1,709 1,844 1,968 1,996 3,290 2,600 3,426 Transfers From/To Rate Stabilization Fund — — — — — — — — — — Net Current Revenue (Including Connection Fees) $ 32,929 $ 29,654 $ 30,695 $ 35,656 $ 34,643 $ 35,357 $ 35,759 $ 30,114 $ 38,056 $ 26,356 Available From Senior Lien Revenues $ 32,929 $ 29,654 $ 30,695 $ 35,656 $ 34,643 $ 35,357 $ 35,759 $ 30,114 $ 38,056 $ 26,356 Subordinate Lien Debt Service (5) $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 2,280 $ — State Loan Debt Service (6) — — — — — — 1,280 1,286 2,573 1,286 Coverage Ratio 4.14 3.73 3.86 4.49 4.36 4.45 3.87 3.26 7.84 20.49 Net Income After Debt Service (7) $ 24,980 $ 21,705 $ 22,746 $ 27,707 $ 26,694 $ 27,408 $ 26,530 $ 20,879 $ 33,203 $ 25,070 Note(s):
(1) Includes revenue paid by the City of Clovis for Operations & Maintenance pursuant to the 1977 Fresno-Clovis Sewerage System Joint Powers Agreement. (2) The 1993 Indenture specifically excludes from Operating Expenditures: Debt Service, Amortization and Depreciation. (3) 1993 Sewer System Revenue Bonds, Series A
(4) Coverage Ratio is calculated by dividing Net Income before Debt Service by Senior Lien Debt Service. (5) 2008 Sewer System Revenue Refunding Bonds, Series A. (6) State Loan Debt Service
(7) Net Income after Debt Service and before cash financed capital expenditures and any other expenditures for lawful purposes. 223
CITY OF FRESNO, CALIFORNIA
Pledged Revenue Coverage - GASB 44 Methodology
Last Ten Fiscal Years (in thousands)
Solid Waste Revenue Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2012 $ 38,271 $ 40,085 $ (1,814) $ 7,500 $ 127 (0.24)
2013 — — — — — —
2014 — — — — — —
2015 — — — — — —
2016 — — — — — —
2017 — — — — — —
2018 — — — — — —
2019 — — — — — —
2020 — — — — — —
2021 — — — — — —
Fresno Convention Center Revenue Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2012 $ 2,667 $ 3,842 $ (1,175) $ 3,352 $ 282 (0.32)
2013 2,594 3,836 (1,242) 3,308 2,708 (0.21)
2014 2,626 3,710 (1,084) 2,799 2,586 (0.20)
2015 2,960 3,844 (884) 2,904 2,469 (0.16)
2016 3,634 4,929 (1,295) 3,030 2,346 (0.24)
2017 3,752 4,929 (1,177) 22,762 2,213 (0.05)
2018 3,318 3,958 (640) 2,189 1,171 (0.19)
2019 3,796 4,350 (554) 3,260 1,882 (0.11)
2020 1,911 3,528 (1,617) 3,422 1,716 (0.31)
2021 (2) 1,719 (1,721) 3,596 1,541 (0.34)
Stadium Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2012 $ 1,251 $ 12 $ 1,239 $ 1,065 $ 2,381 0.36
2013 1,089 9 1,080 1,120 2,322 0.31
2014 798 30 768 1,185 2,260 0.22
2015 1,248 31 1,217 1,255 2,189 0.35
2016 677 224 453 1,335 2,114 0.13
2017 1,082 224 858 17,210 1,597 0.05
2018 2,488 90 2,398 1,355 1,714 0.78
2019 406 111 295 1,490 1,705 0.09
2020 644 51 593 1,575 1,616 0.19
2021 580 154 426 1,670 1,522 0.13
Park Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2012 $ 781 $ 614 $ 167 $ 50 $ 107 1.06
2013 736 416 320 50 106 2.06
2014 329 82 247 50 104 1.61
2015 329 65 264 55 102 1.68
2016 325 102 223 55 100 1.44
2017 340 102 238 2,030 98 0.11
2018 323 38 285 60 73 2.15
2019 410 256 154 50 79 1.19
2020 278 345 (67) 55 77 (0.51)
2021 411 326 85 55 74 0.66
Note(s) Operating Expenses do not include interest, amortization or depreciation expenses.
Solid Waste Management Enterprise Revenue Bond 2000A was paid off in fiscal year 2012.
The City issued new lease-revenue bonds to refinance several existing lease-revenue bonds for economic savings on May 10, 2017. Any bonds that were callable and produced savings were included, even if it meant redeeming one project in part because there was a non-callable portion that could not be redeemed. 224
CITY OF FRESNO, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in Thousands)
Legal Debt Limit Calculation for
Fiscal Year 2021
Assessed Value $ 40,869,954
Debt Limit (20% of assessed
value, pursuant to City Charter) 8,173,991
Debt applicable to the limit:
General obligation bonds — Less amount set aside for
repayment of general obligation
debt —
Total net debt applicable to limit —
Legal debt margin $ 8,173,991
Fiscal Year Debt Limit
Total Net Debt
Applicable to
Limit
Legal
Debt Margin
Total Net Debt
Applicable to the
Limit as a
Percentage of
Debt Limit
2012 $ 5,465,460 $ — $ 5,465,460 0.00 %
2013 5,391,497 — 5,391,497 0.00
2014 5,640,685 — 5,640,685 0.00
2015 6,016,695 — 6,016,695 0.00
2016 6,305,285 — 6,305,285 0.00
2017 6,588,227 — 6,588,227 0.00
2018 6,890,781 — 6,890,781 0.00
2019 7,322,640 — 7,322,640 0.00
2020 7,711,716 — 7,711,716 0.00
2021 8,173,990 — 8,173,990 0.00
Source(s): Assessed Valuation Information - County of Fresno, Tax Rate Book Note(s): The City's Judgment and Pension obligation bonds were the result of legal judgments that were financed to be paid out over a period of time.
Per Article XVI, Section 18 of the California Constitution "obligations imposed by law" are deemed exceptions to the debt limit. 225
CITY OF FRESNO, CALIFORNIA
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Year Population Personal Income
Per Capita
Personal
Income
Unemployment Rate Area Square
Miles
2012 505,009 $ 32,728,837,000 $ 34,539 15.140% 113.04
2013 508,453 33,354,677,000 34,886 13.250% 113.13
2014 515,609 35,172,162,000 36,448 11.580% 113.13
2015 520,159 37,359,815,000 38,323 10.200% 114.20
2016 520,453 39,295,335,000 40,101 9.500% 114.34
2017 525,832 41,024,000,000 41,470 8.480% 114.67
2018 538,330 42,842,800,000 43,084 7.500% 115.21
2019 536,683 45,445,944,000 45,487 7.300% 116.48
2020 545,769 48,539,267,000 48,495 12.124% 116.48
2021 546,770 Not yet available Not yet available 12.131% 116.93 Source(s): Population Information - State of California Department of Finance, Demographic Research Unit Unemployment Information - California Employment Development Department (EDD), Labor Market Information Division
Per Capita Income and Personal Income - Bureau of Economic Analysis (BEA).
Note(s): Personal Income and Per Capita Personal Income information pertains to Fresno, CA, Metropolitan Statistical Area (MSA). 2020-2021 Personal Income and Per Capita Income data is not yet available from the BEA.
The 2021 Unemployment Rate is the average of estimates for the first 8 months of calendar year 2021 as provided by California Employment Development Department as of October 2021.
The 2021 Population is as of 1/1/2021.
226
CITY OF FRESNO, CALIFORNIA
Principal Employers
Current Year and Nine Years Ago
2021 2012
Employer
Employees Rank
Percent of
Total City
Employment
Employees Rank
Percent of Total
City
Employment
Fresno Unified School District 11,492 1 2.84% — — —
Community Regional Medical Center 8,800 2 2.18% 6,000 2 3.06% County of Fresno 7,000 3 1.73% 6,178 1 3.16%
Amazon.com, Inc 7,000 3 1.73% — — —
Clovis Unified 6,000 5 1.48% — — —
Internal Revenue Service 4,300 6 1.06% — — —%
City of Fresno 3,889 7 0.96% 3,244 3 1.66%
Saint Agnes Medical Center 2,867 8 0.71% 2,710 4 1.38%
State Center Community College 2,850 9 0.70% 1,221 5 0.62% California State University, Fresno 2,488 10 0.62% 1,564 6 0.80% Kaiser Permanente Fresno — — — 981 7 0.50%
Zacky Farms LLC — — — 500 8 0.26%
AmeriGaurd Security Systems — — — 700 9 0.36%
Guarantee Real Estate — — — 442 10 0.23%
Total 56,686 14.01% 23,540 12.03%
Fresno City Employment 404,300 195,800
Source(s): Employer Information - Fresno County Economic Development Corporation (EDC) City of Fresno Employment information - Employment Development Department (EDD) - Labor Market Information, State of California Note(s): Fiscal year 2021 employer information provided by the Fresno County Economic Development Corporation (EDD) and represents private and public sector full- time employees.
The fiscal year 2021 employer information for the County of Fresno is estimated to be within the City of Fresno.
The Employer Information for the Internal Revenue Service includes employees from all Fresno offices.
Fiscal year 2021 Fresno City Employment figures are for June 2021 as currently available from the California EDD for Fresno (MSA). 227
CITY OF FRESNO, CALIFORNIA
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Year
General Government 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Management 78.80 78.80 79.50 79.50 80.25 85.25 96.84 101.50 189.00 199.00 Finance 54.68 56.00 56.00 58.00 58.75 60.75 54.75 55.00 118.00 116.00 Other 91.00 89.75 94.80 95.00 96.25 103.50 106.00 112.00 117.00 121.00 Enterprise Functions
Transportation
Airports
Sworn 5.00 5.00 5.00 15.00 15.00 19.00 19.00 19.00 19.00 19.00 Civilian 72.00 72.30 77.40 72.00 72.00 77.35 80.05 82.00 85.65 99.40 FAX Department 409.00 407.00 407.00 422.00 435.50 492.25 508.00 515.50 533.00 534.00 Public Utilities 697.08 602.25 614.75 634.75 640.50 643.80 643.80 646.80 587.75 589.00 Economic Growth and Expansion
Development and Resource
Management Department 169.94 163.10 166.60 174.60 184.60 204.80 218.70 — — — Planning and Development Services — — — — — — — 218.20 138.70 141.20 Public Works 265.00 268.00 272.50 292.75 288.75 305.25 315.25 339.50 356.75 358.00 Culture and Recreation
Parks, Recreation and Community
Services 52.00 52.00 52.00 66.00 71.00 73.50 75.00 75.75 76.00 88.00 Public Protection
Police
Sworn 767.75 748.00 717.00 717.00 775.00 804.00 830.00 835.00 835.00 838.00 Civilian 200.00 202.00 238.00 278.80 244.56 274.65 270.34 273.75 292.00 297.60 Fire
Sworn 317.65 309.00 304.00 310.00 314.00 334.00 334.00 334.00 302.00 305.00 Civilian 40.00 42.75 42.20 46.75 45.00 42.91 47.75 42.50 43.50 45.30 Total 3,219.90 3,095.95 3,126.75 3,262.15 3,321.16 3,521.01 3,599.48 3,650.50 3,693.35 3,750.50 Source(s): City of Fresno Budget Management & Studies Division - Adopted Budgets, Authorized Positions.
Note(s): Figures for Full-Time Equivalents (FTE's) include Permanent and Permanent Part-Time employees only.
Authorized Positions are established by resolution of the City Council and represent the total number of permanent, permanent part-time and permanent intermittent positions in which persons may be employed by the City during a Fiscal Year. Changes in the total number of positions can only be accomplished by resolution of the City Council.
Total permanent positions for each fiscal year are represented as of the following dates: fiscal year 2012 as of May 2012; fiscal year 2013 as of September 2012; fiscal year 2014 as of June 2013; fiscal year 2015 as of September 2014; fiscal year 2016 as of September 2015; fiscal year 2017 as of June 2017; fiscal year 2018 as of June 2018; fiscal year 2019 as of June 2019; fiscal year 2020 as of June 2020 and fiscal year 2021 as of June 2021.
In fiscal year 2017, the Transportation FAX Department added service, management and support staff positions for a variety of service additions such as Bus Rapid Transit (BRT), extended night and weekend service, and increased frequencies on four major avenues.
In fiscal year 2017, positions were added to address reductions that occurred in recent years. Additions to the Police Department included Police Officer Recruits, Police Officer Cadets and a Police Sergeant. Additions to the Fire Department included Firefighters and an administrative position.
In fiscal year 2018, the Budget and Management Studies Division was relocated from the Finance Department to the City Manager's Office.
In fiscal year 2019, Development and Resource Management Department (DARM) became Planning & Development Services. 228
CITY OF FRESNO, CALIFORNIA
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government
Building Permits Issued
Commercial 1,830 1,756 1,835 1,878 1,641 1,948 1,876 1,688 1,731 1,387 Residential 6,499 7,167 7,931 9,084 8,313 11,227 10,998 7,770 9,753 9,045 Police
Physical Arrests 32,782 35,489 39,689 43,729 37,816 26,893 27,920 28,337 20,885 18,006 Traffic Violations (citations issued) 64,979 53,485 51,940 44,954 58,927 58,927 39,488 57,691 43,992 21,769 Calls Received for Police Service 876,820 945,989 957,532 950,099 1,026,458 950,099 1,013,411 924,016 920,020 905,206 Fire
Emergency Medical Service Calls 19,216 18,129 19,413 20,191 19,174 21,773 21,430 32,071 27,964 21,640 Fire Incidents 13,800 14,518 15,953 16,326 18,257 16,702 16,830 25,194 14,906 19,352 Fire Inspections 10,985 12,414 11,187 9,780 12,581 13,292 12,679 12,747 13,692 11,329 Fire Hydrant Inspections 30,917 30,342 30,420 26,811 17,025 17,000 17,252 17,252 17,381 17,859 Wastewater Treatment
Average Daily Sewage Treatment
(million gallons per day) 63.56 61.9 60.2 57.2 55.9 56.9 57.1 56.2 56.1 58 Wastewater Treatment Capacity (million
gallons per day) 80 80 80 80 80 80 80 92 91.5 91.5
Solid Waste
Refuse Collected (tons per day) 916 477 451 505 623 650 648 662 650 750 Recyclables Collected (tons per day) 201 147 116 117 154 156 154 156 159 179 Green Waste Collected (tons per day) 396 378 293 275 348 358 353 365 366 368 Other Public Works
Street Resurfacing (miles) 16.0 10.2 12.3 17.0 18.6 16.8 15.1 28.3 13.8 91.4 Parking Violations (citations issued) 45,667 45,730 49,313 49,326 47,531 53,760 54,865 45,407 34,514 16,524 Parks and Recreation
Athletic Field Permits Issued 3,710 3,281 4,317 5,921 6,949 8,332 5,392 6,795 5,182 556 Memorial Auditorium User Groups 33 20 26 16 27 18 13 23 8 1 Memorial Auditorium, Audience 33,600 15,500 21,600 21,000 45,900 18,900 16,500 19,500 10,800 1,106 Senior Hot Meal Participants (All Sites) 61,988 40,788 38,874 38,103 45,070 44,686 47,605 46,604 29,007 — Meals Served (Not Senior Hot Meals) — — — — — 32,328 40,830 26,879 22,878 — Picnic Shelter/Table Reservations
(Roeding & Woodward) 3,084 2,754 3,058 2,194 2,457 2,053 1,907 1,841 2,438 21 Average Daily Attendance (Neighborhood
Parks with Centers) — — — — 1,653 1,732 1,976 2,083 1,656 357 229
CITY OF FRESNO, CALIFORNIA
Operating Indicators by Function/Program
Last Ten Fiscal Years (Continued)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Convention Center
Event Days 341 360 322 297 209 313 300 296 170 — Gross Ticket Sales $ 5,065,476 $ 4,987,646 $ 7,905,120 $ 5,594,470 $ 7,272,305 $ 8,049,133 $ 6,741,116 $ 12,048,880 $ 3,792,771 $ — Attendance 519,543 553,443 442,070 428,086 455,491 455,587 417,918 478,541 278,299 — Water
Number On-Service Accounts 131,801 130,530 131,910 133,163 134,381 135,448 136,408 137,251 138,332 140,140 Main/Service Leaks Repaired 589 639 705 558 378 408 663 737 776 842 Average Daily Per Capita Consumption (gallons) 246 241 231 208 183 198 208 189 197 203 Peak Daily Consumption (MGD - Million Gallons per
Day) 209.13 200.46 199.4 187.36 169.88 180.6 183.42 156.91 170.01 174.2 Transportation
Airports
Number of Commercial Airlines 9 10 10 9 8 8 8 8 8 9
Number of Cargo Carriers 3 3 3 3 3 3 3 3 3 3
Total Number Tenant Aircraft 405 405 408 408 320 303 277 301 287 287 Annual Fuel Consumption (gallons) 9,467,094 9,613,371 10,454,758 9,548,919 10,541,916 10,592,430 8,698,431 2,648,061 2,002,465 2,247,020 Origin and Destination Passengers
Domestic 1,155,991 1,249,960 1,283,770 1,252,962 1,292,784 1,328,929 1,423,248 1,621,990 1,298,554 1,094,020 International 130,047 124,453 147,094 153,244 182,225 208,947 212,075 235,667 207,037 200,785 Origin and Destination Mail (lbs.) 20,880 6,661 183 — 316 17,818 9,362 12,649 — — Origin and Destination Freight (lbs.) 22,591,445 23,621,976 24,393,421 25,843,389 24,546,856 19,873,695 20,965,016 22,399,354 34,921,956 33,956,904 Fresno Area Express (FAX)
Actual Route Miles 4,175,640 4,151,476 4,218,412 4,157,174 4,175,783 4,208,890 4,337,684 4,649,397 4,701,969 4,693,498 Passengers 14,589,425 12,442,248 12,059,050 11,364,431 10,672,577 9,622,874 9,750,800 10,551,665 9,058,367 5,604,780 Mini-Buses - Purchased Transportation 45 44 48 50 58 63 69 56 48 43 Source(s): City of Fresno - Various Departments
Note(s): Building Permits Issued includes individual units and structures and is a composite of new construction, additions, alterations, repairs and relocations.
Police department figures are based on calendar year and are as of January 1 of reported year. Fiscal year 2020 physical arrest figures are reported as of September 2019.
Information is combined for Fresno Yosemite International (FYI) and Chandler Executive Airport (FCH) for Number of Cargo Carriers, Number of Tenant Aircraft, Annual Fuel Consumption and Origin and Destination Freight.
Fire inspection figures reflect only those performed in the City of Fresno and excludes service calls for neighboring fire districts.
Fire hydrant inspections decreased in fiscal year 2016 because of an inspection schedule change. Beginning in fiscal year 2016, fire hydrant inspections are scheduled for annual inspections instead of bi-annual inspections.
The fiscal year 2016 Mini bus figure includes 8 sedans as is consistent with National Transit Database (NTD) reporting.
The fiscal year 2019 increase in FAX functional areas was due to a steady increase in FAX ridership due to strategic planning efforts, namely the addition of Bus Rapid Transit service in February 2018 and an additional line (Route 12) west of highway 99.
The fiscal year 2019 drop in fuel consumption was due to a loss of a large fixed based operator and a significant drop in the extent of fires, resulting in less military and forest service.
The fiscal year 2020 & fiscal year 2021 reduction in parking violations was related to relaxed enforcement due to COVID-19.
The fiscal year 2021 decrease in number of mini-buses was due to life cycle retirements. Passenger decrease was a direct result of COVID-19, ridership was restricted to allow for social distancing. Beginning March 2020, the passenger limit affected subsequent months and continued through June 20, 2021.
The fiscal year 2021 reduction of Parks & Recreation operations was due to the shuttering of facilities due to COVID-19.
The fiscal year 2021 increase in street resurfacing miles was due to the inclusion of Street Paving, Slurry & Construction Management miles.
The fiscal year 2021 decrease of Convention Center operations was due to the reduction of events hosted in response to COVID-19.
The fiscal year 2021 decrease in Police traffic violations was due to less people on the roads in response to COVID-19.
Information was not available for all years for all categories. 230
CITY OF FRESNO, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police Department
Stations 4 4 4 4 4 5 5 5 5 5
Patrol Bureaus 4 4 4 4 4 5 5 5 5 5
Vehicular Patrol Units 261 261 261 257 276 334 360 356 390 388 Plain Cars (No specialty vehicles) 197 197 175 175 173 198 197 200 228 239 Motorcycles 80 70 71 85 72 70 74 70 66 74
Helicopters 2 2 2 2 2 2 2 2 2 2
Fixed Wing Aircraft 1 1 1 1 1 1 1 — — —
Fire Department
Fire Stations 20 20 20 20 20 20 20 20 20 20
Engine Companies 16 16 16 18 18 17 17 18 18 18
Truck Companies 4 4 4 4 4 5 5 5 5 5
Public Works
Streets (miles) 1,548 1,497 1,490 1,672 1,500 1,511 1,692 1,700 1,714 1,721 Street Lights 41,000 41,556 41,500 42,051 42,207 42,405 43,318 43,450 43,570 43,811 Traffic Signals 450 468 466 489 467 468 481 488 486 488 Solid Waste Division
Collection Trucks 83 83 83 84 89 81 85 86 86 88
Water Division
Water Mains (miles) 1,781 1,782 1,803 1,799 1,801 1,809 1,827 1,859 1,871 1,880 Wells 273 273 271 260 261 260 263 262 262 264
Fire Hydrants 12,954 13,001 13,139 13,170 13,218 13,332 13,484 13,536 13,638 13,717 Sewer Maintenance Division
Sewer Mainlines (miles) 1,507 1,521 1,529 1,533 1,536 1,539 1,613 1,558 1,628 1,579 Manholes 23,275 23,384 23,644 23,776 22,834 23,947 24,146 24,359 25,546 25,546 Lift Stations 15 15 15 15 15 15 15 14 16 16
Parks
Metropolitan Parks (Regional) 3 3 3 3 3 3 3 3 3 3
Neighborhood Parks 31 31 31 32 33 34 34 34 34 34
Pocket Parks 21 21 21 21 21 21 21 21 21 21
Zoo 1 1 1 1 1 1 1 1 1 1
Golf Courses 2 2 2 2 2 2 2 2 2 2
Community Parks 1 1 1 1 1 1 1 1 1 1
Skate Parks 6 6 6 6 8 8 8 8 8 8
Tennis Courts 40 40 40 40 42 42 42 42 42 42
Acres of Parks 1,535 1,535 1,535 1,384 1,392 1,393 1,393 1,393 1,393 1,393 Neighborhood Centers 12 12 12 12 12 12 12 12 12 12
Community Center 5 5 5 5 5 5 7 7 7 7
Swimming Pools 5 5 9 9 9 9 9 8 8 8
231
CITY OF FRESNO, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years (continued)
Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Transportation
Airports 2 2 2 2 2 2 2 2 2 2
Municipal Airport Total Acreage 1,900 1,875 1,875 1,875 1,875 1,875 2,050 2,050 2,050 2,050 Length of Longest Runway (surfaced) -
Linear Feet 9,227 9,227 9,539 9,539 9,539 9,539 9,539 13,165 13,165 13,165 Number of Runways 3 3 3 3 3 3 3 3 3 3
Number of Terminals 2 2 2 2 2 2 2 2 2 2
Terminals (square footage) 193,364 193,364 193,364 193,364 193,364 193,364 193,364 193,364 193,364 193,364 Number of Parking Spaces (surface lot) 2,367 2,365 2,365 2,365 2,355 2,664 2,664 2,664 2,812 3,074 Air Cargo Ramp Spaces 9 9 9 9 8 8 9 9 9 8
Air Cargo Ramp (surface square
footage) 806,390 806,390 806,390 806,390 806,390 806,390 806,390 806,390 806,390 806,390 Number of Hangars 302 302 302 302 303 303 303 303 303 303 Buses - Directly Operated 123 110 111 105 105 129 138 102 100 102 Source(s): City of Fresno - Various Departments
Note(s): Information combined for Fresno Yosemite International (FYI) and Chandler Executive Airport (FCH).
The reduction in fiscal year 2016 is due to the non-inclusion of secondary segments on the major divided roads and is not associated with any road removal.
The Parks Regional Sports Complex reported acreage was reduced from 268 acres to 114. While part of the Complex footprint, 154 acres are presently not available for public access.
Three acres were added due to the opening of the Martin Ray Reilly Park in FY2015. 8.3 acres were added in fiscal year 2016 due to the opening of Inspiration Park.
In fiscal year 2020, Airports added stalls to a designated area not previously used for parking. This increased the number of stalls and had no affect on acreage.
Information not available for all years for all categories. 232
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