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 Auditors' Report ................................................................................................................................. 1 Management's Discussion and Analysis (Unaudited) ......................................................................................... 5 Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................................................. 29 Statement of Activities .......................................................................................................................................... 30 Fund Financial Statements:
Balance Sheet - Governmental Funds ............................................................................................................... 33 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................... 34 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ............. 35 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ..................................................................................... 36 Proprietary Fund Financial Statements:
Statement of Net Position ................................................................................................................................. 37 Statement of Revenues, Expenses and Changes in Fund Net Position ...................................................... 41 Statement of Cash Flows ..................................................................................................................................... 43 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position - Fiduciary Funds - Trust and Custodial Funds ................................... 47 Statement of Changes in Fiduciary Net Position - Fiduciary Funds - Trust Funds ........................................ 48 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
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Notes to the Financial Statements: PAGE
Note 1 Summary of Significant Accounting Policies ........................................................................................... 50 Note 2 Cash and Investments ................................................................................................................................. 69 Note 3 Property Taxes ............................................................................................................................................. 86 Note 4 Receivables ................................................................................................................................................... 87 Note 5 Property, Plant and Equipment - Capital Assets .................................................................................... 90 Note 6 Leases ............................................................................................................................................................ 96 Note 7 Long-Term Liabilities ................................................................................................................................... 101 Note 8 Interfund Activity ........................................................................................................................................... 120 Note 9 Defeasances ................................................................................................................................................. 127 Note 10 Risk Management Fund ............................................................................................................................ 128 Note 11 Employee Benefit Programs .................................................................................................................... 130 Note 12 No-Commitment Debt ................................................................................................................................ 152 Note 13 Commitments and Contingencies ........................................................................................................... 153 Note 14 Securities Lending ..................................................................................................................................... 159 Note 15 Other Information ....................................................................................................................................... 160 Note 16 Deficit Fund Equity ..................................................................................................................................... 161 Note 17 Subsequent Events ................................................................................................................................... 162
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis):
General Fund ..................................................................................................................................................... 171 Grants Special Revenue Fund ......................................................................................................................... 173 Notes to the Required Supplementary Information ............................................................................................. 175 Schedule of Investment Returns - Employees, Fire and Police Retirement Systems .................................. 178 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios:
Fire and Police Retirement Systems .............................................................................................................. 179 Employees Retirement Systems ................................................................................................................... 181 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 REQUIRED SUPPLEMENTARY INFORMATION (continued) PAGE
Schedule of Employer Contributions - Pension Trust Funds:
Fire and Police Retirement Systems ....................................................................................................... 183 Employees Retirement Systems ............................................................................................................ 183 Schedule of Changes in Net OPEB Liability and Related Ratios ....................................................... 184
OTHER SUPPLEMENTARY INFORMATION
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds..................................................................... 187 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds .................................................................................................................................... 189 Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) High Speed Rail - Special Revenue Fund .............................................................................................. 191 Special Gas Tax - Special Revenue Fund .............................................................................................. 192 Measure C - Special Revenue Fund ....................................................................................................... 193 Measure P - Special Revenue Fund ...................................................................................................... 194 Community Services - Special Revenue Fund ...................................................................................... 195 UGM Impact Fees - Special Revenue Fund .......................................................................................... 196 Low and Moderate Income Housing - Special Revenue Fund ............................................................ 197 Special Assessments - Special Revenue Fund ..................................................................................... 198 City Combined - Capital Projects Fund ................................................................................................... 199 Nonmajor Enterprise Funds:
Combining Statement of Net Position ......................................................................................................... 201 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................... 202 Combining Statement of Cash Flows .......................................................................................................... 203 Internal Service Funds:
Combining Statement of Net Position ......................................................................................................... 205 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................... 207 Combining Statement of Cash Flows .......................................................................................................... 208
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CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 OTHER SUPPLEMENTARY INFORMATION (continued) PAGE
Fiduciary Funds:
Combining Statement of Fiduciary Net Position - Fiduciary Funds - Pension Trust Funds ............ 210 Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds - Pension Trust Funds ..................................................................................................................................................... 211 Combining Statement of Changes in Assets and Liabilities - Custodial Funds ................................ 212
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STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years ................................................................................... 215 Change in Net Position - Last Ten Fiscal Years ........................................................................................... 216 Fund Balances, Governmental Funds - Last Ten Fiscal Years .................................................................. 218 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years ............................................ 219 Gross Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .... 220 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ....................................................... 221 Principal Property Taxpayers - Current Year and Nine Years Ago ........................................................... 222 Property Tax Levies and Collections - Last Ten Fiscal Years .................................................................... 223 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .................................................................... 224 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years ...................................................... 226 Direct and Overlapping Governmental Activities Debt - As of March 27, 2023 ........................................... 227 Debt Coverage Ratio - Airports - Last Ten Fiscal Years ............................................................................. 228 Debt Coverage Ratio - Water System - Last Ten Fiscal Years .................................................................. 229 Debt Coverage Ratio - Sewer System - Last Ten Fiscal Years ................................................................. 231 Pledged Revenue Coverage - Last Ten Fiscal Years .................................................................................. 232 Legal Debt Margin Information - Last Ten Fiscal Years .............................................................................. 233 Demographic and Economic Statistics - Last Ten Calendar Years ........................................................... 234 Principal Employers - Current Year and Nine Years Ago ........................................................................... 235 Full Time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 236 Operating Indicators by Function/Program - Last Ten Fiscal Years .......................................................... 237 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ..................................................... 240 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
Jerry Dyer Georgeanne A. White
Mayor City Manager
2600 Fresno Street, Suite 2156 - Fresno, California 93721-3622 March 19, 2025
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, 2024 (fiscal year 2023-2024), 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 ( 546,971 as of January 1, 2024), Fresno is the 5th largest city in California by population, and 35th 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)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0 200
400
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, 2024
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 ( 9.6% of jobs), the Fresno economy continues to diversify, as evidenced by the fact that services ( 29.5% of jobs) and government (18.9% of jobs) employ more people than agriculture.
2010 vs. 2024 Estimated Number of Workers by Industry 2010
Agriculture
14%
Leisure &
Hospitality
8%
Government
20%
Finance, Insurance &
Real Estate
4%Retail
10%
Wholesale
4%
Services
24%
Mining &
Construction
5%
Manufacturing
8%
Transportation &
Public Utilities
3%
2024
Mining &
Construction
6%
Manufacturing
6% Transportation,
Warehousing &
Utilities
5% Farm &
Agriculture
10%
Leisure &
Hospitality
9%
Government
19%
Financial Activities
3%Retail
9%
Wholesale
4%
Services
29%
Source: CA Employment Development Department
Distribution continues to play 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 Employees
Fresno Unified School District 13,669
Community Medical Centers 9,750
County of Fresno 8,980
California State University, Fresno 5,233
City of Fresno 5,015
State Center Community College District 4,367
Internal Revenue Service 4,230
Amazon 3,900
Saint Agnes Medical Center 3,075
Foster Farms 3,009
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
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 300 different commodities providing gross production of $8.6 billion in 2023, an increase of 6.1% from 2022.
Grapes took the lead on Fresno County's Top Ten crop ranking with $1.3 billion gross value in 202 3, followed by almonds at $1.0 billion.
California produces most of the grapes grown in the United States with a significant percentage of raisins coming from Fresno County. Additionally, the region is a significant exporter to many countries throughout the world. In Calendar Year 2023, Fresno County exported 114 unique agricultural commodities to 90 countries around the world.
2023 Diversified Agricultural Base
Grapes
16%
Almonds
12%
Pistachios
10%
Tomatoes
7%Cattle
7%
Poultry
6%
Milk
6%
Peaches
4%
Garlic
4%
Nectarines
3%
Other Crops
25%
Grapes Almonds Pistachios Tomatoes
Cattle Poultry Milk Peaches
Garlic Nectarines Other Crops
Source: Fresno County Agriculture Department CY 2023
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
IV LETTER OF TRANSMITTAL Fiscal Year 2024 Economic Conditions & Financial Impact The Fresno economy continued to steadily progress during fiscal year 2024 while continuing to recover from the effects of the COVID-19 pandemic, as is shown in the table below:
Economic Indicator 2023 2024 Change (%)
Assessed Value (in Billions) $45.74 $49.29 7.75%
Taxable Sales (In Billions) $27.25 $27.30 0.18%
Unemployment Rate 8.1% 7.0% 15.7%
Building Permits 12,570 14,778 17.6%
Local economic improvements were similarly on display when considering key City of Fresno finance indicators as summarized below:
• Total Assets increased $334.6 million ( 7.2%) from the fiscal year 2023 year-end Total Assets balance of $4.7 billion.
• Revenues increased $173.0 million ( 13.3%) from Revenues for fiscal year 2023, which totaled $1.3 billion.
• Expenses increased $158.4 million (14.6%) to $1.25 billion. • Total Net Position increased $224.4 million (7.4%) from fiscal year 2023's total of $3.0 billion.
Summarized below are key metrics reflecting changes within the City's General Fund:
• Total Assets decreased $17.7 million ( 9.0%) over the fiscal year 2023 Total Assets year-end balance of $195.7 million. A reduction in Accounts Receivable of $9.1 million was the primary driver behind the overall decline in Total Assets.
• Total Liabilities decreased $1.6 million ( 3.7%) from the fiscal year 2023 year-end Total Liabilities of $43.1 million. A $3.5 million decrease in Unearned Revenue Funds was the primary reason for this reduction.
• Revenues increased $15.9 million (3.6%) from fiscal year 2023's Revenues of $443.2 million. This was primarily related to Property Tax.
• Expenditures increased $54.2 million ( 13.4%) from fiscal year 2023’s $402.9 million Expenditure level. Increases in Public Protection and General Government expenditures were the primary factors 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, 2024
V LETTER OF TRANSMITTAL How Fresno Compares to the 25 Largest California Cities Though improved, the City of Fresno's financial position still lags behind other large cities in California when it comes to resources available for use to support the City’s population. As the table on page VII demonstrates, the difference between population ranking and assets per capita is one of the largest among the 25 largest California cities by population. It is important to note that the City’s position is enhanced by the Net Pension Asset, which no other city in the survey possesses. The lack of resources 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.
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, 2023 . This was the 31st 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, 2024
VI LETTER OF TRANSMITTAL Total Government-Wide Assets per Capita
Top 25 California Cities Comparison (in Thousands)
City Total Assets ACFR
Year
Population
California
Department
of Finance
As of January 1,
2024
Assets per
Capita
Population
Ranking
Per Capita
Asset Rank
Net Pension
Asset/(Liability)
Los Angeles $ 86,880,646 2024 3,814,318 $ 23 1 2 $ (8,291,933) San Diego $ 19,062,755 2024 1,383,623 $ 14 2 10 $ (2,801,966) San Jose $ 11,469,850 2024 969,491 $ 12 3 11 $ (3,093,881) San Francisco $ 53,822,384 2024 804,842 $ 67 4 1 $ (3,935,441) Fresno $ 4,995,337 2024 546,971 $ 9 5 17 $ 296,426
Sacramento $ 5,693,595 2023 518,161 $ 11 6 12 $ (1,303) Long Beach $ 10,315,441 2023 458,222 $ 23 7 3 $ (1,396,037) Oakland $ 4,663,009 2024 425,093 $ 11 8 13 $ (1,882,645) Bakersfield $ 3,073,009 2023 411,109 $ 7 9 20 $ (537,204) Anaheim $ 5,783,606 2024 340,160 $ 17 10 5 $ (947,401)
Stockton $ 2,965,573 2023 319,731 $ 9 11 15 $ (599,857) Riverside $ 4,792,427 2023 313,676 $ 15 12 8 $ (297,098) Irvine $ 4,345,398 2023 303,051 $ 14 14 9 $ (168,966)
Santa Ana $ 2,156,783 2024 310,227 $ 7 13 23 $ (432,902) Chula Vista $ 2,602,663 2024 276,813 $ 9 15 14 $ (81,768) Santa Clarita $ 1,897,933 2024 230,428 $ 8 16 17 $ (42,187) Fremont $ 1,599,246 2024 229,250 $ 7 17 22 $ (451,544)
San Bernardino $ 1,281,555 2023 223,230 $ 6 18 24 $ (519,634) Modesto $ 2,004,200 2024 218,989 $ 9 19 16 $ (428,214)
Fontana $ 1,570,877 2023 213,851 $ 7 20 21 $ (204,426)
Moreno Valley $ 1,554,872 2024 207,146 $ 8 21 18 $ (87,012) Oxnard $ 3,160,725 2023 197,477 $ 16 22 7 $ (348,729)
Huntington Beach $ 1,461,477 2024 195,332 $ 7 23 19 $ (193,451) Glendale $ 3,175,575 2024 191,586 $ 17 24 6 $ (695,973) Ontario $ 3,091,347 2023 179,061 $ 17 25 4 $ (121,510)
Note: Only figures for each Primary Government were used as of June 30, 2024 AFCR's (2023 when 2024 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, 2024
VII LETTER OF TRANSMITTAL Acknowledgments
The preparation and completion of the City of Fresno’s Annual Comprehensive Financial Report (ACFR) is a significant undertaking that requires exceptional dedication. This accomplishment would not have been possible without the unwavering commitment and professionalism of the City’s Finance Department staff. Despite numerous challenges, the team remained focused on ensuring the successful completion of the report.
Appreciation is also extended to the many departments across the City whose collaboration with the Finance team was essential to the completion of the financial statements. These departments provided valuable input, timely information, and worked diligently to ensure accuracy and consistency throughout the process. Their support, expertise, and commitment to this important work were critical in ensuring that the ACFR was completed thoroughly and on schedule.
Finally, gratitude is expressed to the team at The Pun Group for their expert assistance in preparing the ACFR. Special thanks are also due to the Mayor, the City Council members, and the City Manager’s Office for their continued leadership and support in overseeing the City’s financial operations.
Respectfully submitted,
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
VIII LETTER OF TRANSMITTAL CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
IX CITY OPERATING FUND STRUCTURE CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
X CITY ORGANIZATIONAL CHART
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
XI DIRECTORY OF CITY OFFICIALS This page intentionally left blank
XII
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
XIII CERTIFICATE OF ACHIEVEMENT - GFOA This page intentionally left blank
XIV
1 2
3 4
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
For the Fiscal Year Ended June 30, 2024
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, 2024. 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 $4.7 billion, reaching a total of approximately $5.00 billion. • The City had record revenue of $1.47 billion, primarily due to increases in the following areas:
Capital Grants by $91.7 million ( 36.3%), General Revenue by $72.8 million ( 16.6%), and an increase of $41.9 million (10.8%) related to Charges for Services. • The City continues to record a Net Pension Asset. For fiscal year 2024, the Net Pension Asset was $296.4 million; an increase of $53.1 million (21.8%). The City of Fresno remains one of very few government entities in the country with a Net Pension Asset.
OVERVIEW OF FISCAL YEAR 2024 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, 2024 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, and Fresno Revitalization Corporation. 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 29-30 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-term impact of the government’s near-term financing decisions. Both the Governmental Funds Balance CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 6 MANAGEMENT DISCUSSION & ANALYSIS 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 34 and 36.
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 Non-major 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 plans for taxpayers/ratepayers resources. 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 Funds 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 Non-major 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, 2024 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 29-30 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 50-164 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 171-184 of this report.
Combining and Individual Fund Statements and Schedules
The combining statements referred to earlier in connection with non major governmental funds, non- major 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 187-199 of this report.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 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
2023 2024 2023 2024 2023 2024 $ %
Assets:
Current and Other Assets $ 849,302 $ 871,602 $ 786,459 $ 1,001,464 $ 1,635,761 $ 1,873,066 $ 237,305 14.5% Net Pension Asset 192,319 234,411 51,010 62,015 243,329 296,426 53,097 21.8% Capital Assets:
Not Being Depreciated 428,272 463,730 201,905 245,989 630,177 709,719 79,542 12.6% Net of Accumulated Depreciation 663,838 684,052 1,487,664 1,432,074 2,151,502 2,116,126 (35,376) (1.6)% Total Capital Assets 1,092,110 1,147,782 1,689,569 1,678,063 2,781,679 2,825,845 44,166 1.6% Total Assets $ 2,133,731 $ 2,253,795 $ 2,527,038 $ 2,741,542 $ 4,660,769 $ 4,995,337 $ 334,568 7.2% Deferred Outflows of Resources:
Charge on Refunding 2,814 — 247 — 3,061 — (3,061) (100.0)% Deferred Outflows - Pension 173,598 122,445 38,966 29,499 212,564 151,944 (60,620) (28.5)% Deferred Outflows - OPEB 20,472 18,646 8,661 7,801 29,133 26,447 (2,686) (9.2)% Total Deferred Outflows of Resources $ 196,884 $ 141,091 $ 47,874 $ 37,300 $ 244,758 $ 178,391 $ (66,367) (27.1)% Liabilities:
Long-Term Liabilities Due Within One
Year 98,759 99,077 22,394 31,506 121,153 130,583 9,430 7.8% Long-Term Liabilities Due in More than
One Year 560,033 588,984 732,417 686,568 1,292,450 1,275,552 (16,898) (1.3)% Other Liabilities 248,275 271,227 114,629 123,247 362,904 394,474 31,570 8.7% Total Liabilities $ 907,067 $ 959,288 $ 869,440 $ 841,321 $ 1,776,507 $ 1,800,609 $ 24,102 1.4% Deferred Inflows of Resources:
Pension Revenue Applicable to Future
Years 14,333 16,304 3,981 7,066 18,314 23,370 5,056 27.6% Unamortized OPEB Expense 43,493 44,313 19,130 19,213 62,623 63,526 903 1.4% Unamortized OPEB Expense 1,111 330 25,059 20,990 26,170 21,320 (4,850) (18.5)% Total Deferred Inflows of Resources $ 44,165 $ 64,467 $ 48,170 $ 47,269 $ 92,335 $ 111,736 $ 19,401 21.0% Net Position:
Net Investment in Capital Assets 930,489 881,764 1,015,061 987,193 1,945,550 1,868,957 (76,593) (3.9)% Restricted 605,023 454,508 51,010 62,015 656,033 516,523 (139,510) (21.3)% Unrestricted (155,348) 34,872 595,300 845,548 439,952 880,420 440,468 100.1% Total Net Position $ 1,380,164 $ 1,371,144 $ 1,661,371 $ 1,894,756 $ 3,041,535 $ 3,265,900 $ 224,365 7.4% CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 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
2023 2024 2023 2024 2023 2024 $ %
Revenues
Program Revenues:
Charges for Services $ 90,214 $ 116,371 $ 297,629 $ 313,377 $ 387,843 $ 429,748 $ 41,905 10.8% Operating Grants &
Contributions 106,441 132,944 112,764 52,958 219,205 185,902 (33,303) (15.2)% Capital Grants & Contributions 220,903 101,289 31,550 242,831 252,453 344,120 91,667 36.3% General Revenues:
Property Taxes 167,088 180,976 — — 167,088 180,976 13,888 8.3% Business Tax 26,107 23,197 — — 26,107 23,197 (2,910) (11.1)% Sales Taxes - Shared Revenues 197,563 197,924 — — 197,563 197,924 361 0.2% Other Local Taxes 38,855 42,627 — — 38,855 42,627 3,772 9.7% Investment Earnings 8,245 26,928 (1,299) 39,051 6,946 65,979 59,033 849.9% Other Financing Sources-Leases — — (188) — (188) — 188 Gain on Sale of Capital Assets 1,732 172 2 — 1,734 172 (1,562) (90.1)% Total Revenues $ 857,148 $ 822,428 $ 440,458 $ 648,217 $ 1,297,606 $ 1,470,645 $ 173,039 13.3% Expenses
General Government $ 80,926 $ 92,381 $ — $ — $ 80,926 $ 92,381 $ 11,455 14.2% Public Protection 283,947 367,609 — — 283,947 367,609 83,662 29.5% Public Ways and Facilities 118,362 173,153 — — 118,362 173,153 54,791 46.3% Culture and Recreation 52,570 68,735 — — 52,570 68,735 16,165 30.7% Community Development 130,194 109,567 — — 130,194 109,567 (20,627) (15.8)% Interest on Long-Term Debt 13,738 13,423 — — 13,738 13,423 (315) (2.3)% Sewer, Water and Solid Waste — — 247,909 269,930 247,909 269,930 22,021 8.9% Transit — — 96,519 83,681 96,519 83,681 (12,838) (13.3)% Airports — — 44,097 45,359 44,097 45,359 1,262 2.9% Fresno Convention Center — — 7,418 8,750 7,418 8,750 1,332 18.0% Community Sanitation — — 8,450 10,445 8,450 10,445 1,995 23.6% Parks and Recreation — — 513 385 513 385 (128) (25.0)% Stadium — — 3,264 2,862 3,264 2,862 (402) (12.3)% Total Expenses $ 679,737 $ 824,868 $ 408,170 $ 421,412 $ 1,087,907 $ 1,246,280 $ 158,373 14.6% Increase (Decrease) in Net
Position Before Transfers 177,411 (2,440) 32,288 226,805 209,699 224,365 14,666 7.0% Transfers (8,154) (6,580) 8,154 6,580 — — — —%
Change in Net Position 169,257 (9,020) 40,442 233,385 209,699 224,365 14,666 7.0% Net Position - Beginning 1,210,907 1,380,164 1,620,929 1,661,371 2,831,836 3,041,535 209,699 7.4% Net Position - Beginning Restated 1,210,907 1,380,164 1,620,929 1,661,371 2,831,836 3,041,535 209,699 7.4% Net Position - Ending $ 1,380,164 $ 1,371,144 $ 1,661,371 $ 1,894,756 $ 3,041,535 $ 3,265,900 $ 224,365 7.4% CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 10 MANAGEMENT DISCUSSION & ANALYSIS Analysis of Changes in Government-Wide Net Position
The City’s overall Net Position increased to $3.27 billion: a $224.4 million (7.4%) increase from fiscal year 2023’s Net Position of $3.04 billion. This was mainly due to an increase in the Unrestricted Net Position; going from $440.0 million in fiscal year 2023 to $880.4 million in fiscal year 2024. This was offset by a decrease in the Restricted Net Position; going from $656.0 million in fiscal year 2023 to $516.52 million in fiscal year 2024.
Several factors contributed to the overall increase in Net Position:
• City Revenues grew $173.0 million (13.3%), going from $ 1.30 billion in fiscal year 2023 to $1.47 billion in fiscal year 2024. The overall growth in revenues was caused by a $91.7 million (36.3%) increase in Capital Grants, $72.8 million ( 16.6%) increase in General Revenues, $41.9 million (10.8%) increase in Charges for Services; offset by a decrease of $33.3 million ( 15.2%) in Operating Grants.
• City Expenses increased from $1.09 billion incurred in fiscal year 2023 to $1.25 billion in fiscal year 2024. This was driven by an increase of $145.1 million (21.4%) in Governmental Activities Expenses and an increase of $13.2 million ( 3.2%) in Business-Type Activities Expenses. The primary causes behind the increase in Governmental Activities Expenses were a $83.7 million increase in Public Protection expenses, $54.8 million increase in Public Way and Facility expenses, $16.2 million increase in Culture and Recreation expenses, and a $11.5 million increase in General Government expenses . On the Business-Type Activities side, a $17.1 million rise in Water's expenses, $2.8 million increase in Sewer expenses, and $2.1 million increase in expenditures in Solid Waste.
• Total Assets went from $4.66 billion in fiscal year 2023 to approximately $5.00 billion in fiscal year 2024; a $334.6 million ( 7.2%) increase. The increase in Total Assets was due primarily to a $181.8 million increase in Restricted Cash (from $483.9 million in fiscal year 2023 to $665.7 million in fiscal year 2024; a 37.6% increase) and a $102.8 million increase in Cash and Investments (from $746.2 million in fiscal year 2023 to $849.0 million in fiscal year 2024; a 13.8% increase), which was partially offset by a decrease in two areas:
– a $71.7 million decrease in Receivables, Net (from $294.7 million in fiscal year 2023 to $223.0 million in fiscal year 2024; a 24.3% decrease); and,
– a $35.4 million decrease in Net of Accumulated Depreciation (from $2.15 billion in fiscal year 2023 to $2.12 billion in fiscal year 2024; a 1.6% decrease). • Total Deferred Outflows of Resources decreased by $66.4 million (27.1%) from fiscal year 2023's figure of $244.8 million, mainly due to a $60.6 million decrease of Deferred Outflows - Pensions, a $3.1 million (100.0)% decrease in Charges on Refunding, and $2.7 million decrease in Deferred Outflows - OPEB.
• Total Liabilities increased by $24.1 million (1.4%) from $1.78 billion in fiscal year 2023 to $1.80 billion in fiscal year 2024. The overall increase in Total Liabilities was mainly attributable to an increase of $29.9 million in Unearned Revenue (primarily caused by increases in Grants Special CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 11 MANAGEMENT DISCUSSION & ANALYSIS Revenue and General Services at the end of fiscal year 2024) and an increase of $9.4 million in Other Liabilities-Due Within One Year.
• A $19.73 million (22.6%) increase in the Deferred Inflows of Resources, primarily caused by an increase in Pension Revenue Applicable to Future Years.
Governmental Activities
In fiscal year 2024, Governmental Activities decreased their Net Position by $9.0 million (0.7%) to $1.37 billion. The decrease in Net Position occurred primarily within Public Ways and Facilities, which decreased by $153.6 million to fiscal year 2024’s Public Ways and Facilities ending Net Position of $14.6 million, and Net Investment in Capital Assets, which lessened by $48.7 million to fiscal year 2024's Net Investment in Capital Assets of $881.8 million. These decreases were offset by the Unrestricted Net Position Deficit increase of $190.2 million, which ended the fiscal year at $34.9 million. Key factors impacting the Unrestricted Net Position Deficit were:
• Revenues were reduced, going from $ 857.1 million in fiscal year 2023 to $ 822.4 million in fiscal year 2024; a $34.7 million (4.1%) decrease. The overall decline was primarily due to a decrease in Capital Grants and Contributions of $119.6 million (54.1%) to $101.3 million. • Expenses rose from $679.7 million in fiscal year 2023 to $824.9 million in fiscal year 2024, led by a 46.3% increase in Public Ways and Facilities expenses (from $118.4 million in fiscal year 2023 to $173.2 million in fiscal year 2024), and a 30.7% increase in Culture and Recreation costs (from $52.6 million in fiscal year 2023 to $68.7 million in fiscal year 2024), and a 29.5% increase in Public Protection expenses (from $283.9 million in fiscal year 2023 to $367.6 million in fiscal year 2024). Most of the increase in the Public Protection and Public Ways and Facilities expenses can be attributed to a growth in personnel Pension expenses and Personnel Salaries. Increases in Culture & Recreation expenses can be attributed to an increase in Council motion and Fleet Acquisition expenses.
• Total Assets increased by $120.1 million (5.6%) from fiscal year 2023’s Total Assets balance of $2.13 billion. The overall increase in Total Assets was primarily caused by an increase of $58.5 million ( 15.6%) in Cash and Investments to $434.5 million and an increase of $42.1 million (21.9%) in the Net Pension Asset to $ 234.4 million . This increase was partially offset by a decrease in Net Receivables of $34.6 million (21.4)% to $127.0 million and a decrease in Restricted Cash of $19.8 million (11.5%) to $152.1 million. • Total Liabilities increased by 5.8%, or $ 52.2 million , from fiscal year 2023’s Total Liabilities of $907.1 million. A $27.0 million increase in Unearned Revenue (from $165.3 million in fiscal year 2023 to $192.3 million in fiscal year 2024) generated by unspent grant funds and an increase in Total Long-Term Liabilities (Due Within a Year and Due in More than One Year, combined) of $29.3 million (4.4%) caused by normal debt service payments made during the year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 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 demonstrated below, Public Protection is by far the largest function reflecting the City’s greatest overall expenses.
% of Total Revenue
Fiscal Year
Governmental Activities
Revenue by Type (2 Year Comparative)
14%
11%
16%
12%
12%
26%
3%
3%
24%
23%
22%
18%
4%
5%
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
Business Taxes
Sales Tax
Property Taxes
Other Local Taxes
0 20 40 60 80 100
2024
2023
% of Total Expenses
Fiscal Year
Governmental Activities
Expenses by Type (2 Year Comparative)
45%
42%
21%
17%
13%
19%
8%
8%
11%
12%
2%
2%
Public Protection
Public Ways and Facilities
Community Development
Culture and Recreation
General Government
Interest and Long-Term Debt
0 20 40 60 80 100
2024
2023
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 13 MANAGEMENT DISCUSSION & ANALYSIS (in Millions)
Program Revenues and Expenses - Governmental Activities (2 Year Comparative)
2024 Program Revenues2023 Program Revenues
2024 Expenses 2023 Expenses
Public ProtectionPublic Ways
and Facilities
Community
Development
Culture and
Recreation
General
Government
Interest on
Long-Term Debt
$0
$50
$100
$150
$200
$250
$300
$350
$400
The following is an analysis of some of the funds within the Governmental Activities category:
General Fund
Fund Balance in the General Fund decreased from $127.4 million in fiscal year 2023 to $109.0 million in fiscal year 2024. The Unassigned Fund Balance decreased from $ 54.3 million in fiscal year 2023 to $39.0 million in fiscal year 2024; a $15.3 million (28.1%) decrease.
Fiscal year 2024's revenues showed marked growth when compared to fiscal year 2023’s revenues; increasing by $15.9 million (3.6%) from fiscal year 2023’s total of $443.2 million. The increase was found primarily in Taxes, which increased $17.8 million (4.7%). The main driver in the overall increase in Tax Revenue came from a $26.8 million growth in Property Taxes, due to increased property assessed valuations. Additional growth in the Tax Revenue category was provided by Franchise Tax, which had an increase of $5.6 million, Sales Tax, which grew $5.1 million, and Business Tax, which increased by $1.4 million compared to the prior fiscal year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 14 MANAGEMENT DISCUSSION & ANALYSIS General Fund expenditures increased by $54.2 million, or 13.4%, to a total of $457.1 million. The change in expenditures can be explained by the following factors:
• A rise in Public Protection expenditures, which increased from $281.8 million in fiscal year 2023 to $315.9 million in fiscal year 2024; a $34.1 million, or 12.1% increase. • An increase in General Government expenditures, which increased from $37.3 million in fiscal year 2023 to $49.8 million in fiscal year 2024; a $12.5 million, or 33.4% increase. • An increase in Capital Outlay expenditures, which increased from $4.5 million in fiscal year 2023 to $10.8 million in fiscal year 2024; a $6.3 million, or 137.8% increase. • The growths in expenditures were offset by Public Ways and Facilities, which decreased from $18.6 million in fiscal year 2023 to $16.0 million in fiscal year 2024; a $2.6 million , or 13.8%, decrease.
A large portion of the difference between actual expenditures and actual revenues was funded by transfers from other funds. Overall, Transfers-In decreased $19.3 million (75.4%) to $6.3 million.
Total Assets decreased by $17.7 million ( 9.0%) to $178.1 million . The decrease was driven by three accounts:
• Due from Other Funds, which decreased $8.1 million (48.8%) to $8.5 million • Accounts Receivable, which decreased $7.5 million (14.5%) to $44.2 million • Cash and Investments, which decreased $7.5 million (14.5%) to $44.2 million Total Liabilities declined compared to the prior fiscal year. Total Liabilities dropped by $1.6 million (3.7%) to $41.5 million. The overall decrease in Total Liabilities can be attributed to a decrease of $3.5 million (60.2%) in Unearned Revenue.
Significant committed fund balance amounts of the General Fund include:
• $46.7 million for the General Fund Emergency Reserve, • $7.8 million for the General Fund - Housing Reserve, and • $4.3 million for the 27th Pay Period Reserve.
General Fund Budget to Actual Comparison
The fiscal year 2024 Adopted Budget was made up of $ 564.6 million of budgeted revenues and $ 511.4 million of appropriations. After various amendments were made throughout the fiscal year, the General Fund ended the fiscal year with $574.6 million of budgeted revenues and $534.8 million of appropriations.
Actual results on a budgetary (cash) basis of accounting were $ 613.0 million of revenues and $ 507.6 million of expenditures.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 15 MANAGEMENT DISCUSSION & ANALYSIS The major differences between the budget and the actual results are noted below (Actual Budgetary Basis excludes all FY24 activity that posted after June 30, 2024):
Comparison of Revenues and Expenditures - Budget to Actual / General Fund (in thousands)
Budgeted
Original
Budgeted
Final
Actual
Budgetary
(Cash)
Basis
Over (Under)
Final Budget Explanation
Revenues:
Property
Taxes $174,107 $174,107 $180,515 $6,408 Assessed values of homes continued to increase due to the strong demand for housing in the Central Valley.
Sales Tax $157,105 $157,105 $152,033 ($5,072)
Lower than anticipated sales tax due to economic uncertainty and rising inflation costs which has resulted in less consumer spending.
Charges for
Services $37,468 $37,661 $43,416 $5,755
Higher than expected demand for specific services (i.e., Police Event Services) and growth in service-related activities, contributed to the rise in revenue.
Expenditures:
Public Ways &
Facilities $35,831 $38,576 $27,766 ($10,810)
Delays in the completion of planned infrastructure projects, such as road repairs and facility upgrades, resulted in expenditures being deferred to future periods. Additionally, some projects were either scaled back or adjusted to align with changing priorities, leading to lower than expected costs.
Community
Development $52,628 $56,447 $38,312 ($18,135)
Delays in the execution of planned community projects and programs led to lower-than-expected expenditures. In addition, some initiatives were postponed or scaled back in response to shifting priorities or adjustments in available funding.
Capital Outlay $8,453 $11,055 $5,129 ($5,926)
Decrease is mainly attributed to delays in planned capital projects, including infrastructure improvements, equipment purchases, and building upgrades, which led to lower than expected expenditures.
A more detailed look at the budget versus actual comparison for the General Fund can be found on page 171 in the Required Supplementary Information section.
Grants Special Revenue Fund
Fund Balance in the Grants Special Revenue Fund decreased from $ 43.5 million in fiscal year 2023 to $42.6 million in fiscal year 2024. Total Liabilities increased from $171.7 million in fiscal year 2023 to $188.2 million in fiscal year 2024; a $16.4 million ( 9.6%) increase. This is mainly due to Unearned Revenue increasing from $147.2 million in fiscal year 2023 to $170.0 million in fiscal year 2024: a 15.5% increase.
Fiscal year 2024 revenues, in the Grants Special Revenue Fund, decreased $65.1 million ( 29.1%) to $158.5 million. Expenditures decreased $ 32.5 million ( 17.0%) from fiscal year 2023’s total of $ 190.8 million to fiscal year 2024’s total of $ 158.3 million . Large reductions were seen in the Community Development category (down $24.3 million, or 28.1%), the General Government category (down $21.2 million or 57.6%), and in Culture and Recreation (down $1.54 million or 39.6%). The decrease in the Community Development category was due to less expenditures related to Special Projects and CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 16 MANAGEMENT DISCUSSION & ANALYSIS Professional Services. The decrease in the General Government category was due to less expenditures related to the Emergency Rental Assistance Grant in fiscal year 2024, as this grant was fully expended.
Other Governmental Funds
Fund Balance for the Other Governmental Funds rose $ 15.6 million between fiscal year 2023 and fiscal year 2024 ($ 260.1 million versus $ 275.7 million , respectively) . The growth in the Fund Balance was primarily due to a $8.3 million increase in the UGM fund, a $6.1 million increase in the High Speed Rail fund and a $5.0 million increase in Fund Balance for the Measure P fund.
Business-Type Activities
Business-Type Activities for fiscal year 2024 increased the Net Position by $222.4 million (13.8%) over fiscal year 2023’s Business-Type Activities Net Position of $1.61 billion. Key factors affecting the Net Position were:
• Total Assets increased by $214.5 million (8.49%) from fiscal year 2023’s Total Asset balance of $2.53 billion. This growth was primarily due to a $201.6 million (64.6%) increase in Restricted Cash, to the fiscal year 2023 figure of $312.1 million; a $44.3 million (12.0%) increase in Cash and Investments, compared to the fiscal year 2023 figure of $370.2 million; and a $44.1 million (21.8%) increase in assets Not Being Depreciated, compared to the fiscal year 2023 figure of $201.9 million. This was offset by a $55.6 million (3.7)% decrease in Net of Accumulated Depreciation to the fiscal year 2023 figure of $1.49 billion and a $37.2 (27.9)% decrease in Receivables, Net to the fiscal year 2023 figure of $133.1 million • Total Liabilities declined by 3.2%, or $28.1 million , from fiscal year 2023’s Total Liabilities of $869.4 million. The decrease was primarily due to a $45.8 million (6.3%) decrease in Long-Term Liabilities.
• Revenues went from $440.4 million in fiscal year 2023 to $648.2 million in fiscal year 2024; a $207.8 million ( 47.2%) increase. This growth can be attributed to a $183.8 million ( 266.0%) increase in Water General Revenues, due to one-time revenues, and a $14.5 million (402.5%) increase in Sewer General Revenues. The increase in General revenue was offset by a $59.8 million ( 53.0%) decrease in Operating Grants compared to the prior year. The decrease in Operating Grants was primarily driven by a decline of $52.5 million, (53.6%) in the Transit Fund and a decrease of $4.3 million, (40.5%) in the Airports Fund. • Expenses went from $ 408.2 million in fiscal year 2023 to $421.4 million in fiscal year 2024; a $13.2 million ( 3.2%) increase. The primary driver behind this increase was a $17.1 million (13.8%) growth in the Water Fund's expenses. Additionally, a rise of $2.8 million (3.4%) in the Sewer Fund's expenses and a $2.1 million (5.2%) increase in the Solid Waste Management Fund's expenses. The increase in expenses was offset by a $12.8 million (13.3)% decrease in the Transit Fund's expenses compared to prior year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 17 MANAGEMENT DISCUSSION & ANALYSIS 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. As shown below, Sewer, Water and Solid Waste are the largest Business-Type Activities reflecting the City’s greatest overall expenses. % of Total Revenue
Fiscal Year
Business-Type Activities
Revenue by Type
(2 Year Comparative)
48%
68%
8%
26%
37%
7%
6%
Charges for Services
Operating Grants
& Contributions
Capital Grants
& Contributions*
Interest & Investment
Income
0 20 40 60 80 100
2024
2023
* Increase in Fiscal Year 2024 Capital Grants & Contributions is due to one-time revenues in the Water Fund % of Total Expenses
Fiscal Year
Business-Type Activities
Expenses by Type
(2 Year Comparative)
20%
24%
67%
63%
2%
2%
11%
11%
1%
1%
Transit
Sewer, Water, Solid Waste,
& Community Sanitation
Convention Center
Airport
Stadium
0 20 40 60 80 100
2024
2023
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 18 MANAGEMENT DISCUSSION & ANALYSIS (in Millions)
Business-Type Activities
Program Revenues and Expenses
(2 Year Comparative)
2024 Program Revenues 2023 Program Revenues
2024 Expenses 2023 Expenses
Airport Convention Center Parks &
Recreation
Stadium Sewer, Water*,
Solid Waste &
Community
Sanitation
Transit
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
$300
$325
$350
$375
$400
$425
$450
$475
$500
*Increase in Fiscal Year 2024 is due to one-time revenues in the Water Fund 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 2023’s levels. Net Position increased from $541.7 million in fiscal year 2023 to $723.8 million in fiscal year 2024, a $182.1 million (33.6%) increase. The change in net position was driven by the following factors:
• Water's deferred inflows increased from $5.4 million in fiscal year 2023 to $6.0 million; a $0.7 million ( 12.8%) incline. The increase was primarily driven by a $0.8 million ( 115.6%) rise in Unamortized Pension Expenses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 19 MANAGEMENT DISCUSSION & ANALYSIS • Water's Operating Expenses increased by $ 20.0 million (18.4%) to $ 128.8 million in fiscal year 2024. The increase in expenses was primarily the result of a $14.8 million (28.1%) increase in Costs of Services costs (primarily in water purchases) and a $4.9 million ( 14.4%) increase in Depreciation costs.
• Water's Non-Operating Revenue (Expenses) increased from -$7.5 million to $2.2 million; a $9.7 million (129.0%) increase. This was primarily due to an increase in Unrealized Gain (Loss) on Cash Value of $7.2 million ( 164.1%); changing from -$4.4 million in fiscal year 2023 to $2.8 million in fiscal year 2024. In addition, Operating Grants decreased from $4.1 million in fiscal year 2023 to $0.4 million in fiscal year 2024; a $3.7 million (90.3%) difference. • Total Assets increased from $986 million in fiscal year 2023 to $1.2 billion in fiscal year 2024, a $168.7 million (17.1%) increase. A $199.4 million (262.5%) increase in Cash and Investments and a $8.9 million ( 1.8%) increase in the Net Pension Asset was the primary cause of the overall increase in Water's assets.
Sewer
The Sewer Fund's Net Position increased by $33.7 million (4.6%), from $727.9 million in fiscal year 2023 to $761.6 million in fiscal year 2024. The driver behind the Net Position increase was an increase of $20.1 million (31.5%) in Total Other Assets, an increase of $19.2 million (11.7%) in Current Assets, an increase of $4.0 million ( 6.0%) in Total Restricted Assets, and a $0.3 million ( 4.5%) increase in Total Deferred Inflows, from fiscal year 2023's figure of $5.8 million. This was offset by a a $7.8 million (1.3%) decrease in Capital Assets and 1.3 million (18.5%) decrease in Deferred Outflows.
The increase in Current Assets, Total Restricted Assets, and Total Other Assets contributed to the increase of $20.2 million (2.3%) in Total Assets to $880.7 million. The increase in Current Assets was mainly caused by a $25.4 million (18.9%) growth in Cash and Investments. The overall increase in Total Restricted Cash was due to a $3.8 million increase in Cash. The overall increase in Total Other Assets was primarily caused by a $4.5 million increase in Advances to Other Funds and a $1.7 million increase in Net Pension Asset.
The reduction in Total Liabilities was primarily caused by a $18.0 million (19.6%) decrease in Long-Term Notes Payable. The decrease in Long-Term Liabilities was offset by an increase in Deposits Held For Others totaling $1.6 million (11.3%).
Revenues were up slightly $5.2 million or ( 6.1%), due to increases in Charges for Services . Operating Expenses grew by $4.9 million (6.2%). The Operating Expense growth consisted mainly of a $5.0 million (28.6%) increase in Administration and $0.6 million (2.2%) in Depreciation. The increase in Administration costs was primarily due to an increase in Professional Services.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 20 MANAGEMENT DISCUSSION & ANALYSIS Solid Waste Management
The Solid Waste Management Fund's (Solid Waste) Net Position declined from fiscal year 2023’s figure of $28.2 million to fiscal year 2024’s figure of $18.8 million; a $9.4 million (33.3%) decrease. The Net Position decline was primarily due to a $4.6 million (26.7%) decrease in Current Assets, which included a $3.2 million (100%) decrease in Due From Other Funds to the fiscal year 2023 total of $3.2 million. In addition, Total Capital Assets decreased by $3.0 million ( 37.5%) to $5 million . These reductions were offset by a $0.7 million ( 28.4%) increase in Total Deferred Inflows, mainly due to an increase in Unamortized Pension Expenses of $0.6 million (120.1%).
Solid Waste's Net Operating Revenue (Expenses) decreased to $9.4 million in fiscal year 2024, a $8.3 million (728.9%) decrease compared to fiscal year 2023's figure of $1.1 million. This change was mainly due to Total Operating Expenses increasing by $7.8 million (23.2%) to fiscal year 2023's figure of $33.6 million.
Transit
The Transit Fund continues to experience growth, and ridership increased again in 2024. Transit transported 8.1 million passengers in fiscal year 2024, a 1.3% increase from fiscal year 2023’s ridership of 8.0 million passengers. Overall, transit ridership continues to grow and should reach pre-pandemic levels by 2025.
Transit's revenues decreased $0.1 million ( 2.4%) to $3.6 million . Operating Expenses decreased $7.3 million (8.2%). Additionally, there was a $52.5 million (53.6%) decrease in Operating Grant Revenue to $45.5 million. A decline can also be seen in Total Current Assets, which went from $65.7 million in fiscal year 2023 to $51.6 million in fiscal year 2024; a $14.2 million (21.5%) decrease. The decrease in Operating Grants and Total Current Assets was offset by an increase in Total Restricted Assets of $9.6 million (23.5%) and an increase in the Net Pension Asset of $3.9 million (30.3%). The impact of reduced grant funding caused the Transit Fund's Net Position to decrease by $4.5 million (2.4%) from $189.6 million in fiscal year 2023 to $185.1 million in fiscal year 2024.
Airports
Airports' Fund set an all-time annual record for passenger levels with fiscal year 2024's origin and destination passengers of 2.6 million, 14.6% higher than the prior fiscal year's passenger count of 2.3 million. In addition, the number of plane landings increased by 29.4%, going from 12,770 in fiscal 2023 to 16,527 in fiscal year 2024. The Airport Fund's passenger performance continues to outpace other small hub airports in the Western Pacific Region. The increase in passengers also translated into an increase in non-airline revenues.
The increase in passenger traffic had an impact on Operating Revenues, which increased $5.4 million (15.3%) to $40.3 million . The overall increase in Operating Revenues was powered by increases in passenger driven and airline activity revenues, particularly Landing Fees, which rose to $5.4 million, a 29% increase from $3.8 million in the prior fiscal year . Operating Expenses decreased by $ 2.2 million CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 21 MANAGEMENT DISCUSSION & ANALYSIS (5.5%), to a total of $38.0 million. The decrease in Operating Expenses was mainly driven by a decrease of $2.0 million (11.9%) in Costs of Services and a $192,000 (1.6%) decrease in Depreciation expenses.
The decrease in Operating Expenditures was offset by a $4.0 million (36.1%) increase in Non-Operating Revenue, mainly due to an increase of $4.5 million (1,146.7%) in Passenger Facility Charges.
The increase in revenues and small change in expenses had a predictable effect on Total Assets, which increased $25.6 million (6.6%) to $415.1 million. The overall increase in Total Assets was due to several factors:
• A $21.6 million (37.1%) increase in Construction in Progress, • A $12.5 million (11.0%) decrease in Restricted Assets, • A $12.4 million (7.6%) decrease in Accumulated Depreciation, and • A $2.3 million (39.2%) decrease in Grants Receivable
In addition to the increase in Total Assets, Airports experienced a decrease in Total Liabilities, which declined $2.2 million (1.3%) to $167.4 million. This was mainly due to a decrease of $3.3 million (2.3%) in Long-Term Bonds Payable compared to fiscal year 2023's figure of $147.6 million, due to the Airport Revenue Bonds 2023 A and B for the terminal expansion; and a decrease of $0.2 million ( 1.6%) in Accrued Liabilities, compared to fiscal year 2023's figure of $12.6 million. Additionally, there was a decrease of $3.3 million (20.2%) in Deferred inflows.
The net effect of these changes caused the Total Net Position to increase by $30.4 million (14.6%) from fiscal year 2023's Net Position of $207.9 million to $238.3 million.
Convention Center
Convention Center recorded $5.4 million of revenue in fiscal year 2024; a $1.0 million (24.3%) increase compared to the fiscal year 2023 figure of $4.3 million. Convention Center's expenses also increased in fiscal year 2024 to $8.6 million from fiscal year 2023’s expenses of $ 6.8 million ; a difference of $1.8 million (26.3%). The increase in expenses were mainly due to a $1.0 million (25.6%) increase in the Cost of Services and a $0.79 million (94.9%) increase in Administration.
The Convention Center's Net Position grew from $4.5 million in fiscal year 2023 to $5.5 million in fiscal year 2024, a $1.0 million (22.1%) improvement. A drop of $4.2 million (23.9%) in Total Liabilities, mainly caused by a $1.9 million decline in Bonds Payable as a result of scheduled debt service payments, contributed significantly to the improvement in Net Position. In addition, Total Assets decreased by $3.2 million (14.5% ) from fiscal year 2023's figure of $22.1 million; this was primarily due to a $1.7 million (42.6%) decrease in Restricted Cash.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 22 MANAGEMENT DISCUSSION & ANALYSIS Stadium
The Stadium Fund continues to build on the improvement in Net Position it displayed in fiscal year 2023.
Net Position grew from $8.8 million in fiscal year 2023 to $12.1 million in fiscal year 2024; an increase of $3.4 million (38.7%). Two factors drove the overall increase in Net Position:
• A reduction in Long-Term Liabilities of $2.0 million ( 9.6%); mainly caused by a $2.2 million (10.5%) decrease in Bonds Payable as a result of scheduled debt service payments. • An increase in Capital Assets o f $0.7 million ( 2.7%); primarily due to a $2.1 million ( 63.3%) increase in Construction in Progress.
Internal Service Funds
The Net Position deficit in the Internal Service Funds grew by $8.8 million ( 8.9%) to $107.8 million in fiscal year 2024. The increase in the Net Position deficit was primarily due to an increase of $28.6 million (12.02%) in the Short-Term and Long-Term (combined) Liability for Self-Insurance and $26.4 million (66.2%) increase in Due to Other Funds. Partially offsetting these liability increases were increases of $23.0 million (18.4%), mainly driven by a $35.2 million (21.4%) increase in Machinery and Equipment.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 23 MANAGEMENT DISCUSSION & ANALYSIS
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, 2024 , amount to $2.8 billion (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 1.6% (a 5.1% increase for Governmental Activities, a 0.7% decrease for Business-Type Activities) as shown in the table below. Capital assets for the fiscal year ended June 30, 2023 amounted to $2.8 billion million (net of accumulated depreciation).
Changes in Capital Assets, Net of Depreciation
(in thousands)
Asset Category Governmental
Activities
Business-Type
Activities
Total
Government-Wide
2023 2024 2023 2024 2023 2024
Land $291,550 $298,236 $53,868 $53,503 $345,418 $351,739 Intangibles (Indefinite Life) — — 18,897 21,629 18,897 21,629 Buildings and Improvements,
Net 178,622 174,521 811,435 781,224 990,057 955,745 Machinery and Equipment, Net 72,483 98,811 41,167 31,535 113,650 130,346 Infrastructure 397,540 395,551 631,821 616,847 1,029,361 1,012,398 Rights to Use Assets Being
Amortized 15,193 15,169 3,241 2,466 8,560 18,434
Construction In Progress 136,722 165,494 129,140 170,859 265,862 336,353 Total $1,092,110 $1,147,782 $1,689,569 $1,678,063 $2,771,805 $2,826,644 Major capital asset events during fiscal year 2024, some of which were in progress during the previous fiscal year, included the following:
† Downtown Redevelopment Grant Water and Sewer Improvements Project The Project will bring water and sewer facilities to current standards. The scope of work includes the replacement of 14,315 linear feet of water mains and 5,576 linear feet of sanitary sewer mains, including trenching, excavation, water and sewer service transfers, pavement restoration, repair and reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Additionally, the work includes the rehabilitation of the existing sewer and manhole facilities. Funding for this Project is provided by dollars received by the State of California for the Downtown Public Infrastructure Improvements Projects.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 24 MANAGEMENT DISCUSSION & ANALYSIS † FYI Terminal Expansion Project
The City’s Airport Department is currently in the Construction phase of expansion of over 116,000 square feet if terminal facility. This $150 million Terminal Expansion project, the largest in the history of the airport, is funded with $70 million in Airport Revenue Bonds with the balance coming from other sources including federal grants and passenger facility charges. The expansion project will result in a new terminal concourse with two jet bridge gates for domestic and international use, new concessions, and tenant facilities; new federal inspection service facility, with attached arrivals lobby and outdoor plaza; an expanded passenger screening checkpoint; and a new Checked Baggage Inspection System (CBIS). Construction is underway with an expected opening of Fall 2025.
† North Ave Sewer Trunk Main Realignment
The Department of Public Utilities, Wastewater Management Division worked to design and construct a realignment of the sewer main and repair to divert flow away from an extremely deteriorated section of sewer pipe. Work began on the Installation of a 66" sewer pipe diversion on North Ave sewer trunk main between Cedar and Maple Avenues. Emergency work included the installation of a sewer bypass facility, video inspections for assessing the feasibility of performing repairs, obtaining railroad permits, and the construction repair. The project is designed to convey the flow through a new pipe structure and allow for the replacement of the existing main and will run in parallel with another large diameter pipeline.
At June 30, 2024 , the City had commitments related to various construction projects associated with Governmental Activities totaling $156.3 million. Commitments connected with Business-Type Activities at fiscal year-end amounted to $97.4 million. The most significant of the Governmental Activities project was the Downtown Redevelopment Grant Water & Sewer Improve ment project ( $18.8 million ). The most significant of the Business-Type Activities projects were Phase 2 of the FYI Terminal Expansion ( $58.0 million) and the North Ave Sewer Trunk Main Realignment project ( $5.2 million ). A complete list of projects appear in Note 13(G) - Commitments and Contingencies, page 162, under Construction and Other Significant Commitments.
Debt Administration
At the end of the current fiscal year, the City had total long-term bond obligations and notes and leases payable outstanding of $890.6 million. Of this amount, $67.2 million is obligation bonds backed by the full faith and credit of the City, $660.2 million is revenue bonds and notes of the City’s business enterprises and $978.7 million are tax allocation debt issued by the Successor Agency of the Redevelopment Agency. The remaining $162 million includes lease revenue bonds, notes and capital leases for general governmental projects. For detailed information on the City's debt, see Note 7-Long Term Liabilities, pages 101-119.
During fiscal year 2024, the City’s total bonded debt decreased by approximately $38.2 million. The decrease was due to normal debt service payments and a $15.2 million increase in Capital Lease purchases made during the year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 25 MANAGEMENT DISCUSSION & ANALYSIS The City took the following actions in fiscal year 2024:
• Borrowed an additional $27.4 million through the Master Equipment Lease Purchase Agreement with Banc of America Public Capital Corp. in fiscal year 2024 for public safety 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 follows (as stated in thousands):
Fiscal Year
2024 2023 2022
General Bonded Debt (Par
Amount) $ 67,190 $ 78,255 $ 88,640
General Bonded Debt per Capita $ 122.84 $ 142.48 $ 163.04 Debt Service Tax Rate per $100
Taxable Valuation $ 0.14 $ 0.17 $ 0.21
The City's outstanding general obligation bonds cannot exceed 20% of the assessed value of property within the City. Although the City's Charter imposes a statutory limit on the amount of general obligation bonds the City can have outstanding, the City also considers the potential impacts of all general obligation bonds on its tax base. Currently, there are no outstanding general obligation bonds.
Fitch upgraded the City's Lease Revenue Bond rating from A to AA and its General Obligation rating from A+ to AA on May 3, 2024. Both ratings maintained a Stable outlook. Fitch cited the City's improved financial strength, which has been positively influenced by development and economic diversification— primarily in logistics and fulfillment centers—that will continue to support growth in the City's revenues. In addition, the City continues to have a strong long-term liability profile, which has benefited from low pension liabilities.
Standard & Poor's reaffirmed the Airports bonds' A rating on April 26, 2024. This reaffirmation was supported by favorable post-pandemic enplanement growth, strong liquidity, and a manageable debt burden.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 26 MANAGEMENT DISCUSSION & ANALYSIS As of June 30, 2024, the ratings of the City's debts by rating agencies were as follows:
Moody's
Ratings
S&P Global
Ratings
Fitch
Ratings
Kroll Bond
Rating
Agency
Governmental Activities
General Obligation Bonds A1 AA- AA
Lease Revenue Bonds A2 A+ AA
Business-Type Activities
Airport Revenue Bonds A3 A BBB+ A+
Water Revenue Bonds A3 AA- A+
Wastewater Revenue Bonds A1 AA+ AA
FINANCIAL OUTLOOK
The City continued to demonstrate resilience in the face of ongoing economic challenges, with signs of steady financial growth and post-pandemic recovery. Sales tax revenue for fiscal year 2024 reached $197.9 million, marking a strong continuation of growth, driven by both increased consumer spending and new business activity. This performance is expected to carry over into fiscal year 2025, though growth rates may slow slightly due to broader economic conditions and economic uncertainty. Property tax revenues have also shown consistent growth, supported by increasing property valuations and competitive real estate market. Although the City's economy has remained strong since the Covid-19 pandemic, concerns over inflation and tighter monetary policy are expected to have some impact on future growth.
While the federal economic landscape remains uncertain, the City's financial management practices will continue to remain crucial in maintaining stability. The potential for slowed economic activity, particularly in housing and consumer spending, is a risk to monitor in the upcoming year. The Federal Reserve's actions to manage inflation through interest rate hikes have had observable effects statewide with decreases in home sales, car sales and stock prices. Unemployment rates remain under 10.0%; creating strain for employers to meet demand. These realities underscore the importance of prudent financial management with a sound reserve management policy. The City concluded the 2024 fiscal year with a $46.7 million General Fund Emergency Reserve. This reserve provides a foundation for managing economic uncertainties and allows for a proactive response to unexpected fiscal challenges. The City's prudent approach to budgeting and planning ensures that it remains well-positioned to handle unforeseen economic shifts.
The City will continue to monitor sources with particular expertise of influencing factors that may effect the fiscal condition and outlook of economic activity. Publications provided by the Legislative Analyst's Office, the UCLA Anderson Forecast and others provide invaluable insights that help shape planning. As CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 27 MANAGEMENT DISCUSSION & ANALYSIS the national and local economies adjust to evolving conditions, the City remains committed to preserving its financial health, supporting its residents, and maintaining its status as a thriving and resilient city.
CONCLUSION
Fiscal year 2024 continued to reflect ongoing financial stability as the economy recovers from the pandemic's impacts. While this is promising, there are still risks ahead. Alongside the national economic challenges mentioned earlier, there are substantial geopolitical factors that pose risks to the economic growth. These challenges are significant and will continue to play a key role in shaping future planning as the City works to ensure a high level of services for it's residents.
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, 2024 28 MANAGEMENT DISCUSSION & ANALYSIS
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CITY OF FRESNO, CALIFORNIA
Statement of Net Position
June 30, 2024
(in thousands)
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and Investments $ 434,526 $ 414,485 $ 849,011
Accounts Receivables, Net 126,976 95,977 222,953
Internal Balances 65,515 (65,515) —
Inventories 1,730 11,555 13,285
Prepaid Items 1,232 2,196 3,428
Other Assets 1,575 711 2,286
Property Held for Resale 3,264 — 3,264
Restricted Cash and Investments 152,083 513,626 665,709 Restricted Interest Receivable — 762 762
Loans, Notes, Leases, and Other Receivables, Net 84,701 27,667 112,368 Net Pension Asset 234,411 62,015 296,426
Capital Assets:
Not Being Depreciated 463,730 245,989 709,719
Net of Accumulated Depreciation/Amortization 684,052 1,432,074 2,116,126 Total Assets 2,253,795 2,741,542 4,995,337
Deferred Outflows of Resources
Deferred Outflows - Pensions 122,445 29,499 151,944
Deferred Outflows - OPEB 18,646 7,801 26,447
Total Deferred Outflows of Resources 141,091 37,300 178,391 Liabilities
Accrued Liabilities 60,928 46,764 107,692
Unearned Revenue 192,294 53,705 245,999
Deposits from Others 18,005 22,501 40,506
Other Liabilities — 277 277
Long-Term Liabilities:
Due Within One Year 99,077 31,506 130,583
Due in More than One Year 588,984 686,568 1,275,552
Total Liabilities 959,288 841,321 1,800,609
Deferred Inflows of Resources
Service Concession Arrangement 3,520 — 3,520
Deferred Inflows - Pension 16,304 7,066 23,370
Deferred Inflows - OPEB 44,313 19,213 63,526
Deferred Inflows - Leases 317 16,486 16,803
Total Deferred Inflows of Resources 64,454 42,765 107,219 Net Position
Net Investment in Capital Assets 881,764 987,193 1,868,957 Restricted for:
General Government 30,051 — 30,051
Public Protection 5,764 — 5,764
Public Ways and Facilities 14,590 — 14,590
Culture and Recreation 73,713 — 73,713
Community Development 36,999 — 36,999
Net Pension Asset 234,411 62,015 296,426
Emergency Reserve 46,720 — 46,720
27th Pay Period Reserve 4,315 — 4,315
Housing Reserve 7,788 — 7,788
Asset Sale Reserve 157 — 157
Unrestricted 34,872 845,548 880,420
Total Net Position $ 1,371,144 $ 1,894,756 $ 3,265,900
The notes to the financial statements are an integral part of this statement. 29 CITY OF FRESNO, CALIFORNIA
Statement of Activities
Fiscal Year Ended June 30, 2024
(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 $ 92,381 $ 27,237 $ 7,353 $ 31,146 $ (26,645) $ — $ (26,645) Public Protection 367,609 22,105 10,396 9,542 (325,566) — (325,566) Public Ways and Facilities 173,153 40,793 49,464 51,098 (31,798) — (31,798) Culture and Recreation 68,735 2,819 2,253 1,988 (61,675) — (61,675) Community Development 109,567 23,417 63,478 7,515 (15,157) — (15,157) Interest on Long-term Debt 13,423 — — — (13,423) — (13,423) Total Governmental Activities 824,868 116,371 132,944 101,289 (474,264) — (474,264) Business-Type Activities
Water System 140,858 125,514 394 184,519 — 169,569 169,569 Sewer System 86,052 89,248 — 18,090 — 21,286 21,286 Solid Waste Management 43,020 30,969 691 — — (11,360) (11,360) Transit 83,681 3,589 45,518 26,869 — (7,705) (7,705) Airports 45,359 47,882 6,355 13,303 — 22,181 22,181 Fresno Convention Center 8,750 5,354 — — — (3,396) (3,396) Community Sanitation 10,445 9,551 — — — (894) (894) Parks and Recreation 385 685 — — — 300 300
Stadium 2,862 585 — 50 — (2,227) (2,227)
Total Business-Type Activities 421,412 313,377 52,958 242,831 — 187,754 187,754 Total Primary Government $ 1,246,280 $ 429,748 $ 185,902 $ 344,120 $ (474,264) $ 187,754 $ (286,510) General Revenues:
Taxes and Licenses:
Property Taxes 180,976 — 180,976
Sales Taxes - Shared Revenues 197,924 — 197,924
Franchise Taxes 23,872 — 23,872
Business Tax 23,197 — 23,197
Room Tax 15,604 — 15,604
Other Taxes 3,151 — 3,151
Investment Earnings 26,928 39,051 65,979
Gain on Sale of Capital Assets 172 — 172
Transfers (6,580) 6,580 —
Total General Revenues and Transfers 465,244 45,631 510,875 Change in Net Position (9,020) 233,385 224,365
Net Position - Beginning 1,380,164 1,661,371 3,041,535 Net Position - Ending $ 1,371,144 $ 1,894,756 $ 3,265,900 The notes to the financial statements are an integral part of this statement. 30 This page intentionally left blank
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32 CITY OF FRESNO, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
(in thousands)
General
Fund
Grants
Special
Revenue Fund
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and Investments $ 44,225 $ 64,459 $ 236,902 $ 345,586 Receivables, Net 24,844 4,031 2,986 31,861
Grants Receivable — 29,822 6,284 36,106
Intergovernmental Receivables 41,948 — 13,162 55,110 Due From Other Funds 8,520 4,412 7,343 20,275
Advances to Other Funds, Net — 3,105 — 3,105
Property Held for Resale — — 3,264 3,264
Restricted Cash 58,523 85,237 8,323 152,083
Loans, Notes, Leases, Other Receivables, Net — 60,551 23,818 84,369 Other Assets 632 13 — 645
Total Assets $ 178,692 $ 251,630 $ 302,082 $ 732,404
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities
Accrued Liabilities $ 16,343 $ 16,258 $ 16,636 $ 49,237 Unearned Revenue 2,318 170,010 809 173,137
Due to Other Funds 4,107 1,895 2,407 8,409
Advances From Other Funds 751 — 947 1,698
Deposits From Others 17,968 6 31 18,005
Total Liabilities 41,487 188,169 20,830 250,486
Deferred Inflows of Resources
Unavailable Revenue 28,166 20,852 5,509 54,527
Total Deferred Inflows of Resources 28,166 20,852 5,509 54,527 Fund Balances
Restricted — 42,609 245,279 287,888
Committed 58,980 — — 58,980
Assigned 11,025 — 30,464 41,489
Unassigned 39,034 — — 39,034
Total Fund Balances 109,039 42,609 275,743 427,391
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 178,692 $ 251,630 $ 302,082 $ 732,404 The notes to the financial statements are an integral part of this statement. 33 CITY OF FRESNO, CALIFORNIA
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2024
(in thousands)
Total Governmental Fund Balances $ 427,391
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. 234,411 Capital assets used in Governmental Activities are not current financial resources, and therefore, are not reported in the funds. 1,147,782
Prepaids in Governmental Activities are not current financial resources, and therefore, are not reported in the funds. 1,232
Deferred outflows of resources reported in the Statement of Net Position 141,091 Accrued interest on long-term debt is not accrued in the funds, but rather, it is recognized as an expenditure when due. (1,720)
Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. (681,134)
Difference between deferred inflows of resources reported in the Statement of Net Position and unavailable revenue reported in the Balance Sheet - Governmental Funds (9,927) 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. (6,020) 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. 118,038 Net Position of Governmental Activities $ 1,371,144
The notes to the financial statements are an integral part of this statement. 34 CITY OF FRESNO, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Fiscal Year Ended June 30, 2024
(in thousands)
General
Fund
Grants
Special
Revenue Fund
Other
Governmental
Funds
Total
Governmental
Funds
Revenues
Taxes $ 398,695 $ — $ 64,871 $ 463,566
Licenses and Permits 9,746 — — 9,746
Intergovernmental 3,266 155,724 33,552 192,542
Charges for Services 34,977 — 44,092 79,069
Fines 3,122 — — 3,122
Use of Money and Property 8,339 2,179 11,365 21,883 Miscellaneous 893 601 66 1,560
Total Revenues 459,038 158,504 153,946 771,488
Expenditures
Current:
General Government 49,768 15,612 685 66,065
Public Protection 315,866 18,556 4,739 339,161
Public Ways and Facilities 16,033 25,579 56,286 97,898 Culture and Recreation 22,132 2,343 34,367 58,842
Community Development 38,467 62,016 3,368 103,851
Capital Outlay 10,816 34,235 32,957 78,008
Debt Service:
Principal 3,414 — 19,045 22,459
Interest 571 — 9,758 10,329
Total Expenditures 457,067 158,341 161,205 776,613
Excess (Deficiency) of Revenues Over (Under) Expenditures 1,971 163 (7,259) (5,125) Other Financing Sources (Uses)
Transfers In 6,308 1,702 30,610 38,620
Transfers Out (35,526) (2,706) (7,722) (45,954)
Capital Financing Activity 8,903 — — 8,903
Total Other Financing Sources (Uses) (20,315) (1,004) 22,888 1,569 Net Changes in Fund Balances (18,344) (841) 15,629 (3,556) Fund Balances - Beginning 127,383 43,450 260,114 430,947 Fund Balances - Ending $ 109,039 $ 42,609 $ 275,743 $ 427,391 The notes to the financial statements are an integral part of this statement. 35 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, 2024
(in thousands)
Net change in fund balances - total governmental funds $ (3,556) 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 $72,431 exceeded depreciation of $43,927 in the current period. 28,504 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. 1,786
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. 12,288 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. (7,240)
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. (10,160)
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. (24,037) 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. (6,605)
Change in net position of Governmental Activities $ (9,020) The notes to the financial statements are an integral part of this statement. 36 CITY OF FRESNO, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management Transit Airports
Assets
Current Assets:
Cash and Investments $ 164,827 $ 159,646 $ 4,334 $ 22,992 $ 51,316 Interest Receivable 3,552 1,367 78 603 945
Accounts Receivables, Net 24,316 14,620 8,316 344 3,809 Leases Receivable, Current 107 178 — — 1,931
Grants Receivable 208 — — 8,632 3,496
Inventories 3,199 6,507 — 1,316 463
Prepaid Items 1,618 18 — 39 427
Intergovernmental Receivables — 875 — 17,627 86
Due from Other Funds 3 — 1 12 —
Restricted Cash and Investments — — — — —
Total Current Assets 197,830 183,211 12,729 51,565 62,473 Noncurrent Assets:
Restricted:
Cash and Cash Equivalents 275,333 69,336 9,029 50,625 101,488 Interest Receivable 142 620 — — —
Total Restricted Assets 275,475 69,956 9,029 50,625 101,488 Other Assets:
Other Receivables 1,156 587 — — —
Leases Receivable, Non Current 1,500 1,908 — — 8,779 Other Assets — — — — 426
Net Pension Asset 13,171 11,907 8,518 16,772 5,148 Unamortized CVP Water Settlement 695 — — — —
Solid Waste Rate Payers — — 8,155 — —
Advances to Other Funds, Net 1,951 5,692 — — —
Total Other Assets 18,473 20,094 16,673 16,772 14,353 Capital Assets:
Land and Intangibles 34,029 17,149 2,803 2,216 14,050 Buildings, Systems and Improvements 509,487 589,471 1,567 80,110 218,775 Machinery and Equipment 1,063 6,122 5,699 98,389 5,562 Infrastructure 445,280 365,271 — — 89,404
Right to Use Assets Being Amortized — 209 — — 3,460 Construction in Progress 11,811 46,579 48 26,996 79,964 Less Accumulated Depreciation (338,533) (417,322) (5,080) (85,952) (174,460) Total Capital Assets, Net 663,137 607,479 5,037 121,759 236,755 Total Noncurrent Assets 957,085 697,529 30,739 189,156 352,596 Total Assets 1,154,915 880,740 43,468 240,721 415,069 Deferred Outflows of Resources
Pension Contributions 1,743 1,692 1,200 3,663 1,042 Deferred Outflows - Pension 3,127 2,988 2,221 6,707 1,936 Deferred Outflows - OPEB 1,255 1,160 855 2,854 674 Total Deferred Outflows of Resources $ 6,125 $ 5,840 $ 4,276 $ 13,224 $ 3,652 The notes to the financial statements are an integral part of this statement. 37 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Total
Internal
Service
Funds
Assets
Current Assets:
$ 942 $ 245 $ 3,337 $ 407,639 $ 95,786 Cash and Investments 4 — 39 6,588 922 Interest Receivable
570 925 2,374 55,274 3,270 Accounts Receivables, Net — 100 209 2,525 8 Leases Receivable, Current
— — — 12,336 332 Grants Receivable
70 — — 11,555 1,730 Inventories
94 — — 2,196 1,232 Prepaid Items
— — — 18,588 — Intergovernmental Receivables
— — — 16 3,833 Due from Other Funds
2,357 — — 2,357 — Restricted Cash and Investments
4,037 1,270 5,959 519,074 107,113 Total Current Assets Noncurrent Assets:
Restricted:
822 940 1,419 508,992 2,277 Cash and Investments
— — — 762 — Interest Receivable
822 940 1,419 509,754 2,277 Total Restricted Assets Other Assets:
— — — 1,743 — Other Receivables
— 1,361 1,001 14,549 324 Leases Receivable, Non Current 125 148 12 711 23 Other Assets
— — 3,428 58,944 10,431 Net Pension Asset
— — — 695 — Unamortized CVP Water Settlement
— — — 8,155 — Solid Waste Rate Payers
— — — 7,643 — Advances to Other Funds, Net
125 1,509 4,441 92,440 10,778 Total Other Assets
Capital Assets:
4,163 710 12 75,132 — Land and Intangibles
86,932 43,489 3,743 1,533,574 21,667 Buildings, Systems and Improvements 309 2,783 67 119,994 199,117 Machinery and Equipment — — 122 900,077 — Infrastructure
— — — 3,669 13,988 Right to Use Assets Being Amortized — 5,459 — 170,857 31,300 Construction in Progress
(77,475) (23,858) (2,672) (1,125,352) (117,849) Less Accumulated Depreciation 13,929 28,583 1,272 1,677,951 148,223 Total Capital Assets, Net 14,876 31,032 7,132 2,280,145 161,278 Total Noncurrent Assets 18,913 32,302 13,091 2,799,219 268,391 Total Assets Deferred Outflows of Resources
— — 387 9,727 2,922 Pension Contributions
— — 669 17,648 5,271 Deferred Outflows - Pension
12 — 340 7,150 2,005 Deferred Outflows - OPEB
$ 12 $ — $ 1,396 $ 34,525 $ 10,198 Total Deferred Outflows of Resources The notes to the financial statements are an integral part of this statement. 38 CITY OF FRESNO, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024 (continued)
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management Transit Airports
Liabilities
Current Liabilities:
Accrued Liabilities $ 7,727 $ 7,258 $ 1,817 $ 14,699 $ 12,435 Accrued Compensated Absences and HRA 400 348 382 644 417 Liability for Self-Insurance — — — — —
Unearned Revenue 8,947 12,150 1,915 30,629 (31)
Due to Other Funds 626 163 1,063 143 62
Bonds Payable 4,090 — — — 3,121
Accrued Closure Cost — — 900 — —
Capital Finance Obligations — — — — —
Notes Payable 12,281 2,631 — — —
Lease Liability — 19 — — 1,130
Net OPEB Liability 130 115 114 315 74
Total Current Liabilities 34,201 22,684 6,191 46,430 17,208 Noncurrent Liabilities
Accrued Compensated Absences and HRA 1,876 1,974 1,444 3,652 1,409 Capital Finance Obligations — — — — —
Liability for Self-Insurance — — — — —
Bonds Payable 86,416 — — — 144,238
Accreted Interest Payable on Capital
Appreciation Bonds — — — — —
Notes Payable 302,584 73,999 — — —
Lease Liability — 137 — — 1,213
Pollution Remediation Obligation — — — — 277
Accrued Closure Costs — — 8,344 — —
Advances from Other Funds — — 6,485 — —
Net OPEB Liability 5,168 4,910 3,311 10,539 2,546
Deposits Held for Others 966 15,222 — — 471
Total Noncurrent Liabilities 397,010 96,242 19,584 14,191 150,154 Total Liabilities 431,211 118,926 25,775 60,621 167,362 Deferred Inflows of Resources
Deferred Inflows - Pension 1,544 1,316 1,063 1,095 1,009 Deferred Inflows - OPEB 2,966 2,757 2,087 7,138 1,665 Deferred Inflows - Leases 1,534 2,029 — — 10,379
Total Deferred Inflows of Resources 6,044 6,102 3,150 8,233 13,053 Net Position
Net Investment in Capital Assets 257,174 529,670 5,037 112,267 77,458 Restricted for Net Pension Asset 13,171 11,907 8,518 16,772 5,148 Unrestricted (Deficit) 453,440 219,975 5,264 56,052 155,700 Total Net Position (Deficit) $ 723,785 $ 761,552 $ 18,819 $ 185,091 $ 238,306 The notes to the financial statements are an integral part of this statement. 39 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Totals
Internal
Service
Funds
Liabilities
Current Liabilities:
$ 1,103 $ 388 $ 715 $ 46,142 $ 10,593 Accrued Liabilities — — 58 2,249 780 Accrued Compensated Absences and HRA — — — — 46,136 Liability for Self-Insurance
— 20 — 53,630 19,232 Unearned Revenue
— — 140 2,197 13,518 Due to Other Funds
1,784 2,100 70 11,165 — Bonds Payable
— — — 900 — Accrued Closure Cost
— — — — 7,671 Capital Finance Obligations
— — — 14,912 — Notes Payable
— — — 1,149 6,709 Lease Liability
1 — 32 781 230 Net OPEB Liability
2,888 2,508 1,015 133,125 104,869 Total Current Liabilities Noncurrent Liabilities
— — 454 10,809 5,937 Accrued Compensated Absences and HRA — — — — 35,501 Capital Finance Obligations
— — — — 220,538 Liability for Self-Insurance
7,199 16,230 1,322 255,405 — Bonds Payable
Accreted Interest Payable on Capital
2,407 — — 2,407 — Appreciation Bonds
— — — 376,583 — Notes Payable
— — — 1,350 1,953 Lease Liability
— — — 277 — Pollution Remediation Obligation
— — — 8,344 — Accrued Closure Costs
— — — 6,485 — Advances from Other Funds
70 — 1,256 27,800 4,806 Net OPEB Liability
844 — — 17,503 4,998 Deposits Held for Others
10,520 16,230 3,032 706,963 273,733 Total Noncurrent Liabilities 13,408 18,738 4,047 840,088 378,602 Total Liabilities Deferred Inflows of Resources
— — 640 6,667 520 Deferred Inflows - Pension
20 — 821 17,454 6,906 Deferred Inflows - OPEB
— 1,421 1,123 16,486 317 Deferred Inflows - Leases
20 1,421 2,584 40,607 7,743 Total Deferred Inflows of Resources Net Position
(5,422) 10,902 (4) 987,082 95,465 Net Investment in Capital Assets — — 3,428 58,944 10,431 Restricted for Net Pension Asset 10,919 1,241 4,432 907,023 (213,652) Unrestricted (Deficit) $ 5,497 $ 12,143 $ 7,856 1,953,049 $ (107,756) 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. (58,293)
Net position of Business-Type Activities $ 1,894,756
The notes to the financial statements are an integral part of this statement. 40 CITY OF FRESNO, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Fiscal Year Ended June 30, 2024
(in thousands)
Business-Type Activities - Enterprise Funds
Water
System
Sewer
System
Solid Waste
Management
Transit Airports
Operating Revenues:
Charges for Services $ 125,514 $ 89,248 $ 30,969 $ 3,589 $ 40,286 Operating Expenses:
Cost of Services 67,484 32,348 24,777 58,833 15,079 Administration 22,267 22,684 16,067 14,937 10,544
Amortization — 20 — — 755
Depreciation 39,019 29,340 510 8,675 11,618
Total Operating Expenses 128,770 84,392 41,354 82,445 37,996 Operating Income (Loss) (3,256) 4,856 (10,385) (78,856) 2,290 Non-Operating Revenue (Expenses):
Operating Grants 394 — 691 45,518 6,355
Interest Income 9,801 5,127 224 910 6,838
Net Increase (Decrease) in Cash Fair Value 2,807 6,893 324 2,406 1,320 Interest Expense (10,820) (770) (52) — (7,042)
Passenger Facility Charges — — — — 4,937
Customer Facility Charges — — — — 2,659
Gain (Loss) on Disposal of Capital Assets — — — — — Total Non-Operating Revenue (Expenses) 2,182 11,250 1,187 48,834 15,067 Income (Loss) Before Contributions & Transfers (1,074) 16,106 (9,198) (30,022) 17,357 Capital Contributions 184,519 18,090 — 26,869 13,303 Transfers In 238 — 1,474 — —
Transfers Out (1,587) (544) (1,692) (1,386) (259)
Change in Net Position 182,096 33,652 (9,416) (4,539) 30,401 Total Net Position (Deficit) - Beginning 541,689 727,900 28,235 189,630 207,905 Total Net Position (Deficit) - Ending $ 723,785 $ 761,552 $ 18,819 $ 185,091 $ 238,306 The notes to the financial statements are an integral part of this statement. 41 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center Stadium
Other
Enterprise
Funds Totals
Internal
Service
Funds
Operating Revenues:
$ 5,354 $ 585 $ 10,236 $ 305,781 $ 263,332 Charges for Services Operating Expenses:
4,938 280 6,295 210,034 218,125 Cost of Services
1,612 156 4,028 92,295 44,193 Administration
— — — 775 — Amortization
2,034 1,376 193 92,765 18,529 Depreciation
8,584 1,812 10,516 395,869 280,847 Total Operating Expenses (3,230) (1,227) (280) (90,088) (17,515) Operating Income (Loss) Non-Operating Revenue (Expenses):
— — — 52,958 332 Operating Grants
32 26 148 23,106 3,188 Interest Income
(3) 35 91 13,873 3,929 Net Increase (Decrease) in Cash Fair Value (166) (1,050) (95) (19,995) (940) Interest Expense
— — — 4,937 — Passenger Facility Charges
— — — 2,659 — Customer Facility Charges
— — — — 172 Gain (Loss) on Disposal of Capital Assets (137) (989) 144 77,538 6,681 Total Non-Operating Revenue (Expenses) (3,367) (2,216) (136) (12,550) (10,834) Income (Loss) Before Contributions & Transfers — 50 — 242,831 — Capital Contributions
4,361 5,552 258 11,883 2,804 Transfers In
— — (1,086) (6,554) (799) Transfers Out
994 3,386 (964) 235,610 (8,829) Change in Net Position 4,503 8,757 8,820 (98,927) Total Net Position (Deficit) - Beginning $ 5,497 $ 12,143 $ 7,856 $ (107,756) 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. (2,225)
Change in net position of Business-Type
Activities $ 233,385
The notes to the financial statements are an integral part of this statement. 42 CITY OF FRESNO, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
Fiscal Year Ended June 30, 2024
(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 $ 147,102 $ 94,221 $ 33,527 $ 15,067 $ 37,276 Cash Received from Interfund Services Provided 1,149 193 — — — Cash Payments (to) from Suppliers for Services (71,903) (28,775) (10,309) (10,159) (12,061) Cash Paid for Interfund Services Used (5,403) (3,968) (11,695) (9,940) (2,586) Cash Payments to Employees for Services (21,298) (18,686) (10,465) (51,851) (8,455) Cash Payments for Claims and Refunds — — — — —
Net Cash Provided by (Used for) Operating Activities 49,647 42,985 1,058 (56,883) 14,174
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Capital Contributions 184,520 18,913 — 31,823 15,392 Passenger and Customer Facility Charges — — — 7,595 Interest Payments on Capital Debt (10,854) 485 (54) — (5,138) Proceeds from Capital Finance Activity — — — — —
Principal Payments on Capital Debt-Bonds — — — — (1,400) Principal Payments on Capital Debt-Notes (12,122) (16,444) — — — Principal Payments on Capital Finance Obligations — — — — — Proceeds (Loss) from Sale of Capital Assets — — — — — Acquisition and Construction of Capital Assets (3,205) (27,706) — (27,279) (37,192) Net Cash Provided by (Used for) Capital and Related
Financing Activities 158,339 (24,752) (54) 4,544 (20,743)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
Operating Grants 394 — 1,624 57,078 6,680
Borrowing Receipt from (Payment to) Other Funds — — — — — Transfers In 238 — 1,474 — —
Transfers Out (1,587) (544) (1,692) (1,386) (259)
Net Cash Provided by (Used for) Non-Capital
Financing Activities (955) (544) 1,406 55,692 6,421 CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and Dividends Received (Paid) on Investments 10,619 11,520 546 3,013 7,669 Net Cash Provided by (Used for) Investing Activities 10,619 11,520 546 3,013 7,669 Net Increase (Decrease) in Cash and Cash Equivalents 217,650 29,209 2,956 6,366 7,521 Cash and Cash Equivalents, Beginning of Year 222,510 199,773 10,407 67,251 145,283 Cash and Cash Equivalents, End of Year $ 440,160 $ 228,982 $ 13,363 $ 73,617 $ 152,804 The notes to the financial statements are an integral part of this statement. 43 Business-Type Activities - Enterprise Funds
Fresno
Convention
Center
Stadium
Other
Enterprise
Funds
Totals
Internal
Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
$ 4,111 $ — $ 12,092 $ 343,396 $ 113,242 Cash Received from Customers — 61 — 1,403 149,122 Cash Received from Interfund Services Provided (4,281) (408) (4,045) (141,941) (95,441) Cash Payments (to) from Suppliers for Services — — (1,631) (35,223) (4,077) Cash Paid for Interfund Services Used (2,852) — (4,922) (118,529) (36,784) Cash Payments to Employees for Services — — — — (107,666) Cash Payments for Claims and Refunds (3,022) (347) 1,494 49,106 18,396 Net Cash Provided by (Used for) Operating Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
— 70 — 250,718 16,410 Capital Contributions
— — — 7,595 — Passenger and Customer Facility Charges (1,091) (1,223) (67) (17,942) (1,338) Interest Payments on Capital Debt — — — — (23,585) Proceeds from Capital Finance Activity (1,726) (1,980) (65) (5,171) — Principal Payments on Capital Debt-Bonds — — — — — Retirement of Debt
— — — (28,566) — Principal payments on Capital Debt-Notes — — — — (7,203) Principal Payments on Capital Finance Obligations — — — — 172 Proceeds from Sale of Capital Assets
(300) (1,957) — (97,639) (18,042) Acquisition and Construction of Capital Assets (3,117) (5,090) (132) 108,995 (33,586)
Net Cash Provided by (Used for) Capital and Related
Financing Activities
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
— — — 65,776 — Operating Grants
332 Borrowing Receipt from Other Funds
— — — (12,904) Borrowing Receipt from (Payment to) Other Funds 4,361 5,552 258 11,883 2,804 Transfers In
— — (1,087) (6,555) (799) Transfers Out
4,361 5,552 (829) 71,104 (10,567)
Net Cash Provided by (Used for) Non-Capital
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
21 52 229 33,669 7,063 Interest and Dividends Received (Paid) on Investments 21 52 229 33,669 7,063 Net Cash Provided by (Used for) Investing Activities (1,757) 167 762 262,874 (18,694) Net Increase (Decrease) in Cash and Cash Equivalents 5,878 1,018 3,994 656,114 116,757 Cash and Cash Equivalents, Beginning of Year $ 4,121 $ 1,185 $ 4,756 $ 918,988 $ 98,063 Cash and Cash Equivalents, End of Year (Continued)
The notes to the financial statements are an integral part of this statement. 44 CITY OF FRESNO, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
Fiscal Year Ended June 30, 2024 (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) $ (3,256) $ 4,856 $ (10,385) $ (78,856) $ 2,290 Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense 39,019 29,340 510 8,675 11,618 Amortization Expense — 20 — — 755
Change in assets and liabilities:
Decrease (increase) in accounts receivable 2,128 1,076 786 (181) 2,835 Decrease (increase) in Grants receivable 3,441 —
Decrease (increase) in other receivables 1,043 1,232 1,190 — — Decrease (increase) in due from other funds 10,727 6,840 3,161 195 218 Decrease (increase) in due from other governments — (273) — — — Decrease (increase) in material and supplies inventory 29 (988) — (390) (59) Decrease (increase) in prepaid items (1,144) 23 20 21 1,001 Decrease (increase) in net pension asset & deferred outflows (539) (1,714) (429) 1,624 (391) Decrease (increase) in advances to other funds 1,034 (4,505) 4,258 — — Decrease (increase) in prepaid insurance — — — — 19 (Decrease) increase in accounts payable (4,201) 6,592 1,902 9,430 90 (Decrease) increase in salaries payable 52 130 (27) 247 (207) (Decrease) increase in due to other funds 203 25 556 40 (4) (Decrease) increase in other liabilities — (132) — — — (Decrease) increase in retention payable (22) 269 45 453 (579) (Decrease) increase in accrued closure costs (1,183) — — (Decrease) increase in unearned revenue 651 — — 2,233 (296) (Decrease) increase in liability for self-insurance — — — (Decrease) increase in deposits (129) — — — 20
(Decrease) increase in pollution remediation liability — — (89) (Decrease) increase in net OPEB liability (74) (71) (44) (184) (42) (Decrease) increase in deferred inflows of resources 685 265 698 (190) (3,005) Net Cash Provided by (Used For) Operating Activities $ 49,647 $ 42,985 $ 1,058 $ (56,883) $ 14,174 Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:
Cash and Investments:
Unrestricted $ 164,827 $ 159,646 $ 4,334 $ 22,992 $ 51,316 Restricted - Current and Noncurrent 275,333 69,336 9,029 50,625 101,488 Cash and Cash Equivalents at End of Year on Statement
of Cash Flows $ 440,160 $ 228,982 $ 13,363 $ 73,617 $ 152,804 Noncash Investing, Capital, and Financing Activities:
Acquisition/construction of capital assets on accounts payable $ 432 $ 848 $ 48 $ — $ 4,806 Amortization of bond premium, discount and loss on refunding 88 — — — (202) Borrowing under capital financing — — — — —
Decrease (increase) in fair value of investments (10,685) (6,893) (324) (2,406) (1,320) Decrease in unamortized CVP water settlement receivable and decrease in CVP litigation settlement payable (428) The notes to the financial statements are an integral part of this statement. 45 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:
$ (3,230) $ (1,227) $ (280) $ (90,088) $ (17,515) Operating income (loss) Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:
2,034 1,376 193 92,765 18,529 Depreciation expense
— — — 775 — Amortization expense
Change in assets and liabilities:
(198) (408) 421 6,459 (1,370) Decrease (increase) in accounts receivable 3,441 Decrease (increase) in Grants receivable
— — — 3,465 Decrease (increase) in other receivables — — 1,385 22,526 (633) Decrease (increase) in due from other funds — — — (273) — Decrease (increase) in due from other governments (10) — — (1,418) (239) Decrease (increase) in material and supplies inventory (53) — — (132) (689) Decrease (increase) in prepaid items 84 — (531) (1,896) 1,880 Decrease (increase) in net pension asset & deferred outflows — — — 787 — Decrease (increase) in advances to other funds (52) 21 1 (11) — Decrease (increase) in prepaid insurance (477) 7 309 13,652 (4,273) (Decrease) increase in accounts payable — — 222 417 812 (Decrease) increase in salaries payable — (2) (454) 364 (13,545) (Decrease) increase in due to other funds — — — (132) — (Decrease) increase in other liabilities — — — 166 128 (Decrease) increase in retention payable — — — (1,183) — (Decrease) increase in accrued closure costs — — — 2,588 7,441 (Decrease) increase in unearned revenue — — — — 28,614 (Decrease) increase in liability for self-insurance (1,119) — — (1,228) 318 (Decrease) increase in deposits — — — (89) — (Decrease) increase in pollution remediation liability — — (22) (437) (234) (Decrease) increase in net OPEB liability (1) (114) 250 (1,412) (829) (Decrease) increase in deferred inflows of resources $ (3,022) $ (347) $ 1,494 $ 49,106 $ 18,395 Net Cash Provided by (Used For) Operating Activities Reconciliation of Cash and Cash Equivalents to the
Statement of Net Position:
Cash and Investments:
$ 942 $ 245 $ 3,337 $ 407,639 $ 95,786 Unrestricted
3,179 940 1,419 511,349 2,277 Restricted - Current and Noncurrent Cash and Cash Equivalents at End of Year on Statement
$ 4,121 $ 1,185 $ 4,756 $ 918,988 $ 98,063 of Cash Flows Noncash Investing, Capital, and Financing Activities:
$ — $ 159 $ — $ 6,293 $ 1,402 Acquisition/construction of capital assets on accounts payable (200) (173) (15) (502) — Amortization of bond premium, discount and loss on refunding — — — — 23,585 Borrowing under capital financing
3 (35) (91) (21,751) (3,929) Decrease (increase) in fair value of investments — (428) —
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. 46 CITY OF FRESNO, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds - Trust and Custodial Funds
June 30, 2024
(in thousands)
Pension
Trust Funds
Successor Agency
to the Fresno
Redevelopment
Agency Private-
Purpose Trust Fund
Custodial
Funds
Assets
Cash and Investments $ 1,291 $ 2,239 $ 2,786
Restricted Cash and Investments Held by Fiscal Agent — — 545 Total Cash and Investments 1,291 2,239 3,331
Receivables:
Receivables for Investments Sold 10,409 — —
Interest and Dividends Receivable 4,138 — 31
Other Receivables 1,579 — —
Due from Other Governments — — 557
Total Receivables 16,126 — 588
Investments, at Fair Value:
Short-Term Investments 14,871 — —
Domestic Equity 977,280 — —
International Equities 785,972 — —
Private Equity 291,638 — —
Fixed Income 496,634 — —
Private Debt/Credit 538,814 — —
Real Estate 846,704 — —
Multi-Assets 64,456 — —
Total Investments 4,016,369 — —
Collateral Held for Securities Lent 54,787 — —
Capital Assets, Net of Accumulated Depreciation 424 — — Other Assets 210 — —
Property Held for Resale — 293 —
Total Assets 4,089,207 2,532 3,919
Deferred Outflows of Resources
Pension Contributions — 271 —
Total Deferred Outflows of Resources — 271 —
Liabilities
Accrued Liabilities 14,077 174 60
Collateral Held for Securities Lent 54,787 — —
Due to Other Governments — — 3
Other Liabilities 1,867 — —
Long-Term Debt:
Due Within One Year — 100 —
Due in More than One Year — 946 —
Advances From Other Funds (Due to City of Fresno) — 2,565 — Net Pension Liability — 734 —
Total Liabilities 70,731 4,519 63
Deferred Inflows of Resources
Unamortized Pension Expense — 52 —
Net Position
Restricted for Pension Benefits 4,018,476 (1,768) —
Restricted for Individuals, Organizations, and Other
Governments — — 3,856
Held in Trust for Redevelopment Dissolution — — —
Total Net Position (Deficit) $ 4,018,476 $ (1,768) $ 3,856 The notes to the financial statements are an integral part of this statement. 47 CITY OF FRESNO, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds - Trust Funds
Fiscal Year Ended June 30, 2024
(in thousands)
Pension
Trust Funds
Successor Agency
to the Fresno
Redevelopment
Agency Private-
Purpose Trust Fund
Custodial
Funds
Additions
Contributions:
Employer $ 59,256 $ — $ —
System Members 31,941 — —
Total Contributions 91,197 — —
Investment Income:
Net Appreciation in Fair Value of Investments 418,771 — — Interest 18,922 — 36
Dividends 13,883 — —
Other Investment Related 280 — —
Total Investment Income 451,856 — 36
Less Investment Expense (75,892) — —
Total Net Investment Income 375,964 — 36
Securities Lending Income:
Securities Lending Earnings 3,372 — —
Less Securities Lending Expense (3,009) — —
Net Securities Lending Income 363 — —
Property Taxes — 1,376 —
Taxes Collected for Organizations and Other
Governments — — 2,611
Fees Collected for Organizations and Other
Governments — — 6,943
Other Income — 76 557
Total Additions 467,524 1,452 10,147
Deductions
Benefit Payments (including post retirement
supplemental benefits) 170,752 — —
Refund of Contributions 2,669 — —
Redevelopment Expenses — 28 —
General and Administrative Expenses 4,776 438 203
Deposits Held for Others — — 9,235
Interest on Debt — 35 —
Total Deductions 178,197 501 9,438
Change in Net Position 289,327 951 709
Net Position - Beginning (Deficit) 3,729,149 (2,719) 3,147 Net Position - Ending (Deficit) $ 4,018,476 $ (1,768) $ 3,856 The notes to the financial statements are an integral part of this statement. 48 This page intentionally left blank
49 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 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 50 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 use the economic resources measurement focus and the accrual basis of accounting.
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. Prepaids are reported using the purchases method.
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.
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 51 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.
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.
Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays.
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 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 52 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.
The City Departmental and Special Purpose Fund account 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 use the economic resources measurement focus.
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.
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 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 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 53 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.
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.
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 54 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 55 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES While there are no financial results from the Fresno EIFD in the Fiscal Year 2023 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.
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 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 56 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 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, 2024 , encumbrances totaled $11.0 million in the General Fund, $95.9 million in the Grants Special Revenue Fund, and $54.2 million in the Non major 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 57 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
E. New Accounting Pronouncements - Implemented
1. GASB Statement No. 100 - Accounting Changes and Error Corrections- an Amendment to GASB Statement No. 62
The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for City’s fiscal year ending June 30, 2024; however implementation of this statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2024.
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. 101 - Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for City’s fiscal year ending June 30, 2025.
2. GASB Statement No. 102 - Certain Risk Disclosures
The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. That objective is achieved by requiring governments to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact.
The statement also requires a government to assess whether an event or events associated with CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 58 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City’s fiscal year ending June 30, 2025. Earlier application is encouraged.
3. GASB Statement No. 103 - Financial Reporting Model Improvements The objective of this Statement is to improve key components (listed below) of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. Application of this statement is effective for City's fiscal year ending June 30, 2026.
• Management's Discussion and Analysis (MD&A)
• Unusual or infrequent items
• Presentation of proprietary fund statement of revenues, expenses and changes in fund net p osition
• Major component unit information
• budgetary comparison information
• financial trends information in the statistical section
4. GASB Statement No. 104 - Disclosure of Certain Capital Assets The objective of this Statement is to establish requirements for certain types of capital assets to be disclosed separately in the capital asset note disclosures required by Statement No. 34, "Basic Financial Statements- and Management's Discussion and Analysis- for State and Local Governments." It also establishes requirements for capital assets held for sale, including additional disclosures for those capital assets. The requirements of this statement will improve financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability.
Application of this statement is effective for City's fiscal year ending June 30, 2026.
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 59 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.
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) ($3.3 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, 2024, the adjusted value of the property was $3.6 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 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 60 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Statements as Property Held for Resale. Property held for resale by the Successor Agency is included in the fiduciary funds.
K. Restricted Assets
Restricted cash is classified as restricted assets on the financial statements 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 financing 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 finance purchase 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, 2024 61 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 2024, $21.6 million has been capitalized as an intangible asset. Included in this amount are noise mitigation assets of $5.4 million and Water Rights in the amount of $16.2 million.
Capital Financing Activities
Property, plant and equipment include the following property held under capital financing obligation at June 30, 2024 (in thousands):
Governmental
Activities
Machinery and Equipment $ 77,316
Less: Accumulated Depreciation (40,238)
Net Machinery and Equipment $ 37,078
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 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 62 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES N. Deferred Outflows of Resources
1. 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. For the OPEB plan, the the employer contribution made after the measurement period is the implicit subsidy for the current fiscal year. Refer to Note 1 (V) and 1 (W) for additional information.
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 which represent an acquisition of net assets that applies to future periods. 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, unamortized OPEB expense, and unamortized leases 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, 2024 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 $ 3,200 $ — $ — $ 3,200
Franchise Taxes 4,420 — — 4,420
Business Tax 2,624 — — 2,624
Measure C and Other Tax — — 4,799 4,799
Code Enforcement Revenue 10,768 — — 10,768
Fire Revenue 1,842 — — 1,842
Grant Revenue — 20,852 261 21,113
Parking Citations, Fines and Other Revenue 2,501 — — 2,501 Leases 2,812 — 449 3,261
Total $ 28,166 $ 20,852 $ 5,509 $ 54,527
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 63 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Q. Interfund Transfers
Interfund transfers are generally recorded as transfers in (out). The following types of transactions would not be considered Interfund Transfers, and therefore would not be recorded as an interfund item in the external financial statements. These exceptions include the following:
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)
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, CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 64 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2024 , the Reserve balance identified as Committed Fund Balance was at $59.0 million, including $46.7 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 Windfall Reserve Fund are currently being used to fund salaries of additional police dispatchers. The Committed Fund Balance as of June 30, 2024 includes $0.2 million within this fund.
In addition to the City's Emergency Reserve, the Committed Fund Balance as of June 30, 2024 also consists of $4.3 million designated exclusively for use in a year when a 27th 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 27th pay period is fiscal year 2028.
The Committed Fund Balance as of June 30, 2024 also includes $7.8 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. Other governmental funds may not report positive unassigned fund balances.
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, 2024 65 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Balances of the governmental funds at June 30, 2024 consisted of the following (in thousands):
Grants Other Total
General Special Revenue Governmental Governmental
Fund Fund Funds Funds
Restricted:
Debt Service $ — $ — $ 2,428 $ 2,428
Fire — — 545 545
PARCS — — 42,417 42,417
Public Works — — 163,375 163,375
Police — — 1,341 1,341
ARPA and Public Safety Grants — 21,844 — 21,844
Capital Projects and Community Revitalization
Grants — 4,262 — 4,262
Planning and Development Grants — 16,503 — 16,503
Total Restricted — 42,609 245,279 287,888
Committed
27th Pay Period Reserve 4,315 — — 4,315
Emergency Reserve General Fund 46,720 — — 46,720
Asset Sale Reserve Fund 157 — — 157
Housing General Fund 7,788 — — 7,788
Total Committed 58,980 — — 58,980
Assigned:
Animal Care 39 — — 39
Capital Projects 41 — — 41
Economic Development — — 334 334
Fire — — 25,294 25,294
General Purpose 7,000 — — 7,000
Mayor and City Manager — — 181 181
Neighborhood and Community Service 3 — — 3
PARCS — — 178 178
Personnel (2) — — (2)
Police 872 — 132 1,004
Public Works 3,072 — 4,345 7,417
Total Assigned 11,025 — 30,464 41,490
Unassigned (Deficit) 39,034 — — 39,034
Total Fund Balance (Deficit) $ 109,039 $ 42,609 $ 275,744 $ 427,391 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 and amortization, 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 66 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2024 , the Statement of Net Position Business-Type Activities reflected approximately $0.7 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 Litigation 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.
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 67 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2024 68 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, 2024 (in thousands):
(in thousands) Primary Government
Category
Governmental
Activities
Business-Type
Activities
Fiduciary
Funds Total
Cash and Investments $ 434,526 $ 414,485 $ 6,316 $ 855,327 Restricted Cash and Investments 152,083 513,626 545 666,254 Pension Trust Investments at Fair Value — — 4,016,369 4,016,369 Collateral Held for Securities Lent — — 54,787 54,787 Total $ 586,609 $ 928,111 $ 4,078,017 $ 5,592,737
2. Cash and Deposits
At year-end, the City's bank balance was $ 37.2 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, 2024 financial statements was $35.6 million. The difference is due to deposits in transit and outstanding checks.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 69 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, 2024 70 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, 2024 Level 1 Level 2 Federal Farm Credit Bank Bonds $ 102,975 $ — $ 102,975 Federal Home Loan Bank Bonds 188,721 — 188,721
Federal Home Loan Mortgage Corporation Bonds 54,828 — 54,828 Federal National Mortgage Association Bonds 64,792 — 64,792 Federal AG Mortgage Corporation 73,403 — 73,403
U.S. Treasury Securities 66,279 66,279 —
Medium Term Corporate Notes 268,529 — 268,529
Negotiable Certificate of Deposit 38,934 — 38,933
Total Pooled Investments by Fair Value 858,461 66,279 792,182 Pooled Investments Not Subject to the Fair Value
Hierarchy
State Local Agency Investment Fund 74,668
Time Deposits 6,000
Municipal Bonds 149,967
Supranational 27,818
Money Market Funds 295,000
Total Pooled Investments Not Subject to the Fair
Value Hierarchy 553,453
Total Pooled Investments 1,411,914
Investments Held Outside the Treasurer's Pool Not
Subject to the Fair Value Hierarchy
Money Market Mutual Funds 73,864
Total Investments Held Outside the Treasurer's Pool 73,864 Grand Total of Investments $ 1,485,778 $ 66,279 $ 792,182 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.
In addition, the City's investment in LAIF is also not subject to the fair value hierarchy, 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, 2024 71 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, 2024 72 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, 2023 and June 30, 2024:
City of Fresno Treasurer's Pool (Fair Value)
June 30, 2023
3.48%
9.63%
16.31%
4.11%
1.99%
1.97%
4.99%
0.42%22.60%
4.19%
1.32%
14.72%
2.40%
11.87%
Cash Accounts Federal Farm Credit Bank
Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Federal Ag Mortgage Corporation U.S. Treasury Securities U.S. Sovereign Bonds
Medium Term Corporate Notes Negotiable Certificate of Deposit State Local Agency Investment Fund (CA LAIF) Time Deposits Municipal Bonds Supranational
Money Market Mutual Funds
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 73 NOTE 2 - CASH AND INVESTMENTS City of Fresno Treasurer's Pool (Fair Value)
June 30, 2024
2.57%
7.11%
13.02%
3.78%
4.47%
5.07%
4.57%
18.53%
2.69%
5.15%
0.41%
10.35%
1.92%
20.36%
Cash Accounts Federal Farm Credit Bank
Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Federal AG Mortgage Corporation U.S. Treasury Securities U.S. Sovereign Bonds
Medium Term Corporate Notes Negotiable Certificate of Deposit State Local Agency Investment Fund Time Deposits
Municipal Bonds Supranational
Money Market Funds
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 74 NOTE 2 - CASH AND INVESTMENTS City of Fresno
Treasurer's Pool Maturity Schedule
As of June 30, 2023
32.56%
18.42%
20.03%
15.88%
13.11%
Less than 1 Year
1 - 2 Years
2 - 3 Years
3 - 4 Years
4 - 5 Years
As of June 30, 2024
42.90%
16.25%
15.91%
14.52%
10.42%
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 2024, total interest of $73.9 million was earned from the following instruments:
• Money Market Funds - $73.9 million
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 75 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 Bonds U.S. Government Agency $ 102,975 21.25 % Federal Home Loan Bank Bonds U.S. Government Agency 188,721 38.93 % Federal Home Loan Mortgage Corporation
Bonds
a
n
kU.S. Government Agency 54,828 11.31 %
Federal National Mortgage Association
n
kU.S. Government Agency 64,792 13.37 %
Federal AG Mortgage Corporation U.S. Government Agency 73,403 15.14 % $ 484,719 100 %
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 76 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, 2024 77 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, 2024, 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 $ 37,177
Treasurer's Pool Investments
U.S. Government Agencies:
Federal Farm Credit Bank 102,975 $ 24,677 $ 78,298 $ — $ — Federal Home Loan Bank 188,721 39,273 149,448 — —
Federal Home Loan Mortgage Corp. 54,828 9,781 45,047 — — Federal National Mortgage Association 64,792 4,762 60,031 — — Federal Ag Mortgage Corporation 73,403 — 73,403 — — Subtotal of U.S. Government Agencies 484,719 78,492 406,227 — — U.S. Treasury Securities 66,279 19,814 46,465 — —
Medium Term Corporate Notes 268,529 84,957 183,572 — — Negotiable Certificates of Deposit 38,933 14,772 24,162 State Local Agency Investment Fund (CA LAIF) 74,668 74,668 — — — Time Deposits 6,000 6,000 — — —
Municipal Bonds 149,967 27,153 122,814
Supranational 27,818 4,877 22,941 — —
Money Market Mutual Funds 295,000 295,000 — — —
Total Treasurer's Pool Investments 1,411,914 $ 527,319 $ 806,181 $ — $ — Investments Held Outside the Treasurer's Pool
Debt Service Funds/Bond Proceeds:
Mutual Funds 73,864 73,864 — — —
$ 73,864 $ 73,864 $ — $ — $ —
Other Deposits 7,887
Outstanding Checks (10,007)
Deposits in Transit 554
Petty Cash 194
Pension Trust Assets (See Separate ACFRs) 4,071,155
Reconciliation Adjustment (2)
Total Primary Government $ 4,069,781
Total Cash and Investments $ 5,592,737
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 78 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 $ 102,975 A AA+ 7.29%
Federal Home Loan Bank 188,721 A AA+ 13.37%
Federal Home Loan Mortgage Corporation 54,828 A AA+ 3.88% Federal National Mortgage Association 64,792 A AA+ 4.59% Federal AG Mortgage Corporation 73,403 A Unrated 5.20% U.S. Treasury Securities 66,279 A Aaa 4.69%
Medium Term Corporate Notes:
Wal-mart Stores 4,997 A AA 0.35%
Shell International Fin 4,937 A A+ 0.35%
Toyota Motor Credit Corp 4,889 A A+ 0.35%
Exxon Mobil Corporation 4,917 A AA- 0.35%
Florida Power & Light 4,902 A A+ 0.35%
US Bank NA Cincinnati 4,920 A A+ 0.35%
Principal Lfe Glb Fnd II 4,799 A A+ 0.34%
Toyota Motor Credit Corp 4,609 A A+ 0.33%
JP Morgan Chase 4,565 A A+ 0.32%
Lloyds Bank 4,918 A A+ 0.35%
JP Morgan Chase 4,865 A A+ 0.34%
Bank of America 4,569 A A- 0.32%
Bank of America 4,569 A A- 0.32%
PROTECTIVE LIFE 4,680 A AA- 0.33%
Bank of America 4,536 A A- 0.32%
Royal Bank of Canada 9,602 A A 0.68%
New York Life 7,356 A AA+ 0.52%
Bank of New Yrok 4,654 A A 0.33%
Met Life Glob 4,614 A AA- 0.33%
Apple Inc 9,496 A AA+ 0.67%
U.S. Bancorp 9,512 A A 0.67%
Toyota Motor Credit Corp 9,498 A A+ 0.67%
New York Life 5,651 A AA+ 0.40%
Cit Group Holdings Inc 9,782 A A 0.69%
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, 2024 79 NOTE 2 - CASH AND INVESTMENTS Meta Plaforms Inc 9,602 A AA- 0.68%
National Secs Clearing 5,010 A AA+ 0.35%
Massmutual Global Fund 9,993 A AA+ 0.71%
Toyota Motor Credit Corp 10,148 A A+ 0.72%
Guardian Life 8,820 A AA+ 0.62%
Northwestern Mutual Glbl 9,390 A AA+ 0.67%
Municipal Bonds
County of Riverside CA 4,912 A AA 0.35%
Texas A&M University 2,939 A AAA 0.21%
Antelope Vally Union High 1,723 A Aa3 0.12%
County of Westchester NY 1,856 A AA+ 0.13%
University of California 4,817 A AA 0.34%
Los Altos School Dist 4,946 A AAA 0.35%
New York State Dormitory 1,598 A AA+ 0.11%
Chaffey Community College 2,703 A Aa1 0.19%
State of Hawaii 5,891 A AA+ 0.42%
State of California 9,355 A AA- 0.66%
Golden State Tobacco 1,870 A A+ 0.13%
Los Angeles Unified School Dist 3,220 A Aa2 0.23%
State of New York 6,582 A AA+ 0.47%
Golden State Tobacco 5,892 A A+ 0.42%
University of California 8,616 A AA 0.61%
Los Angeles Unified School Dist 13,581 A Aa2 0.96%
Golden State Tobacco 8,526 A A+ 0.60%
Fresno County CA Pension Oblg 7,941 A AA 0.56%
Kern County CA Pension Obllg 14,068 A AA- 1.00%
Contra Costa CA Cmnty Clg Dist 2,586 A AA+ 0.18%
State of Hawaii 8,353 A AA+ 0.59%
State of Connecticut 9,671 A AA- 0.68%
State of Hawaii 4,513 A AA+ 0.32%
State of California 8,994 A AA- 0.64%
Chabot-Las Positas Calif Cmnty 899 A AA 0.06%
City of Los Angeles CA 1,105 A AA 0.08%
Supranational
Inter-American Development Bank 4,877 AA AAA 0.35%
INTL BK RECON & DEVELOP 4,659 AA AAA 0.33%
INTL BK RECON & DEVELOP 3,227 AA AAA —%
INTL BK RECON & DEVELOP 5,379 AA AAA 0.38%
Intl Finance Corp 9,677 AA AAA 0.69%
Inter-American Development Bank — AA — —%
Inter-American Development Bank — AA — —%
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, 2024 80 NOTE 2 - CASH AND INVESTMENTS Negotiable Certificate of Deposit: 38,933 N/A Unrated 2.76% State Local Agency Investment Pool: 74,668 N/A Unrated 5.29% Time Deposits: 6,000 N/A Unrated 0.42%
Money Market Funds: 295,000 N/A Unrated 20.89%
Total Treasurer's Pool Investments $ 1,411,914 94.32%
Investments with Trustees:
Money Market Funds $ 73,864 N/A Unrated 100.00%
Total Investments with Trustees $ 73,864 100.00%
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.
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, 2024 . As of June 30, 2024 , the City’s deposits with institutions in excess of federal depository insurance limits were $ 36.3 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, CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 81 NOTE 2 - CASH AND INVESTMENTS 2024, 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, 2024 , was $ 21.9 billion . LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2024, had a balance of $ 178 billion. Of that amount, 3.0% was invested in medium-term and short-term structured notes and asset- backed securities. The average maturity of PMIA investments was 217 days as of June 30, 2024.
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 82 NOTE 2 - CASH AND 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, 2024 consist of the following (in thousands):
Investments at Fair Value
Domestic Equities $ 977,280
International Equities 291,638
Private Equity 496,634
Fixed Income 64,456
Private Debt/Credit 538,814
Real Assets 785,972
Multi-Assets 14,871
Short-Term Investments 846,704
Total Investments at Fair Value $ 4,016,369
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 Equities 15.0% 22.5% 36.0%
International Equities 10.0% 18.0% 25.0%
Private Equity 0.0% 6.5% 10.0%
Core Fixed Income 5.0% 13.0% 20.0%
Private Debt/Credit 5.0% 14.0% 20.0%
Core Real Estate 5.0% 9.0% 15.0%
Non-Core Real Estate 2.0% 6.0% 8.0%
Infrastructure 2.0% 7.0% 10.0%
Alternative Credit 0.0% 4.0% 7.0%
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).
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 83 NOTE 2 - CASH AND INVESTMENTS 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, 2024 84 NOTE 2 - CASH AND INVESTMENTS Restricted assets are reported in the following funds at June 30, 2024 (in thousands):
Cash and
Investments
Current and
Noncurrent
Interest
Receivable Total
Governmental Activities:
General Fund $ 58,523 $ — $ 58,523
Grants Special Revenue Fund 85,237 — 85,237
Nonmajor Governmental Funds 8,323 — 8,323
Internal Service Funds — — 152,083
Subtotal 152,083 — 152,083
Business-Type Activities
Water System 275,333 142 275,475
Sewer System 69,336 620 69,956
Solid Waste Management 9,029 — 9,029
Transit 50,625 — 50,625
Airports 101,488 — 101,488
Convention Center 3,179 — 3,179
Stadium 940 — 940
Nonmajor Enterprise Funds 1,419 — 1,419
Internal Service Funds 2,277 — 2,277
Subtotal 513,626 762 514,388
Fiduciary:
Agency Funds 545 — 545
Subtotal 545 — 545
Total $ 666,254 $ 762 $ 667,016
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 85 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, 2024
86 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, 2024 were $ 5.5 million for the General Fund, $ 2.9 million for Water System, $ 1.9 million for Sewer System, $ 2.6 million for Solid Waste Management, $ 0.5 million for Airports, and $ 2.6 million for Other Enterprise Funds. The uncollectible accounts related notes receivables at June 30, 2024 were $ 8.2 million for Grants Special Revenue Fund and $ 1.8 million for Other Governmental Funds. Accounts not scheduled for collection during the subsequent year are $ 83.1 million for Governmental notes and loans and $ 9.2 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
87 NOTE 4 - RECEIVABLES
Receivables, net of amounts uncollectible, (in thousands) as of June 30, 2024 were as follows:
Intergovernmental
Receivable
Interest
Accounts
Receivable
Grants
Receivable
Property
Taxes Other
Notes,
Loans &
Other
Receivable
Lease
Receivable Total
Governmental Activities
General Fund $ 1,013 $ 20,940 $ — $ 5,565 $ 36,383 $ — $ 2,891 $ 66,792 Grants Special Revenue
Fund 1,038 2,993 29,822 — — 60,551 — 94,404
Other Governmental Funds 2,096 422 6,284 — 13,162 23,818 468 46,250 Internal Service Funds 725 299 332 — — — 332 1,688 Subtotal $ 4,872 $ 24,654 $ 36,438 $ 5,565 $ 49,545 $ 84,369 $ 3,691 209,134 Advances to Successor
Agency and Due To(From)
Fiduciary Funds 2,565
Total $ 211,699
Business-Type Activities
Water System $ 3,694 $ 24,316 $ 208 $ — $ — $ 1,851 $ 1,607 $ 31,676 Sewer System 1,987 14,620 — — 875 587 2,086 20,155 Solid Waste Management 78 8,316 — — — 8,155 — 16,549 Transit 603 344 8,632 — 17,627 — — 27,206
Airports 945 3,809 3,496 — 86 — 10,710 19,046
Fresno Convention Center 4 570 — — — — — 574
Stadium — 925 — — — — 1,461 2,386
Other Enterprise Funds 39 2,374 — — — — 1,210 3,623 Internal Service Funds 197 2,994 — — — — — 3,191 Total $ 7,547 $ 58,268 $ 12,336 $ — $ 18,588 $ 10,593 $ 17,074 $ 124,406 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
88 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 $ 126,976 $ 95,977 $ 222,953
Restricted Interest Receivable — 762 762
Loans, Notes, Leases and Other Receivables, Net 84,701 27,667 112,368 Total $ 211,677 $ 124,406 $ 336,083
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
89 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, 2024 (in thousands):
Primary Government
Governmental
Activities
Business-Type
Activities
Fiduciary
Funds Total
Capital Assets Not Being Depreciated:
Land $ 298,236 $ 53,503 $ — $ 351,739
Intangibles Indefinite Life — 21,629 — 21,629
Construction in Progress 165,494 170,859 — 336,353
Total Capital Assets Not Being Depreciated 463,730 245,991 — 709,721 Capital Assets Being Amortized:
Right-To-Use Lease Asset 27,343 3,669 — 31,012
Total Capital Assets Being Amortized 27,343 3,669 — 31,012 Less: Accumulated Amortization For:
Right-To-Use Lease Asset 12,174 1,203 — 13,377
Total Accumulated Amortization 12,174 1,203 — 13,377 Total Capital Assets Being Amortized, Net 15,169 2,466 — 17,635 Capital Assets Being Depreciated:
Buildings and Improvements 365,082 1,533,698 — 1,898,780 Machinery and Equipment 236,705 120,115 3,207 360,027 Infrastructure 1,548,439 900,077 — 2,448,516
Total Capital Assets Being Depreciated 2,150,226 2,553,890 3,207 4,707,323 Less: Accumulated Depreciation:
Buildings and Improvements 190,560 752,474 — 943,034 Machinery and Equipment 137,895 88,580 2,573 229,048 Infrastructure 1,152,887 283,230 — 1,436,117
Total Accumulated Depreciation 1,481,342 1,124,284 2,573 2,608,199 Total Capital Assets Being Depreciated, Net $ 668,884 $ 1,429,606 $ 634 $ 2,099,124 Total Capital Assets, Net $ 1,147,783 $ 1,678,063 $ 634 $ 2,826,480 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
90 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS B. Governmental Activities
Capital asset activity related to governmental activities for the fiscal year ended June 30, 2024 was as follows(in thousands):
Beginning
Balance Increases Transfers Decreases Ending
Balance
Capital Assets Not Being Depreciated:
Land $ 291,549 $ 6,687 $ — $ — $ 298,236
Construction in Progress 136,723 63,556 — 34,785 165,494 Total Capital Assets Not Being Depreciated 428,272 70,243 — 34,785 463,730 Capital Assets Being Amortized:
Right-To-Use Lease Asset 21,638 5,705 — — 27,343
Total Capital Assets Being Amortized 21,638 5,705 — — 27,343 Less: Accumulated Amortization For:
Right-To-Use Lease Asset 6,445 5,729 — — 12,174
Total Accumulated Amortization 6,445 5,729 — — 12,174 Total Capital Assets Being Amortized, Net 15,193 (2,690) — — 15,169 Capital Assets Being Depreciated:
Buildings and Improvements 361,621 3,461 — — 365,082 Machinery and Equipment 200,754 40,752 — 4,801 236,705 Infrastructure 1,513,700 34,739 — — 1,548,439
Total Capital Assets Being Depreciated 2,076,075 78,952 — 4,801 2,150,226 Less: Accumulated Depreciation For:
Buildings and Improvements 178,783 11,777 — — 190,560 Machinery and Equipment 127,646 14,956 — 4,707 137,895 Infrastructure 1,121,001 31,886 — — 1,152,887
Total Accumulated Depreciation 1,427,430 58,619 — 4,707 1,481,342 Total Capital Assets Being Depreciated, Net $ 648,666 $ 20,333 $ — $ 94 $ 668,884 Total Capital Assets, Net $ 1,092,110 $ 90,552 $ — $ 34,879 $ 1,147,782 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
91 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS Depreciation/Amortization was charged to functions as follows (in thousands):
Function Depreciation
Amount
Amortization
Amount
General Government $ 19,127 $ 5,729
Public Protection 3,230 —
Public Ways and Facilities 31,981 —
Culture and Recreation 4,237 —
Community Development 44 —
Total Governmental Activities Depreciation and
Amortization Expense $ 58,619 $ 5,729
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
92 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, 2024 was as follows (in thousands):
Beginning
Balance Increases Transfers Decreases Ending
Balance
Capital Assets Not Being Depreciated:
Land $ 53,868 $ — $ — $ 365 $ 53,503
Intangibles (Indefinite Life) 18,897 2,732 — — 21,629 Construction in Progress 129,140 95,748 — 54,029 170,859 Total Capital Assets Not Being
Depreciated 201,905 98,480 — 54,394 245,991
Capital Assets Being Amortized:
Intangible Lease Asset 3,669 717 — 717 3,669
Less: Accumulated Amortization For:
Intangible Lease Asset 428 1,327 — 552 1,203
Total Accumulated Amortization 428 1,327 — 552 1,203 Total Capital Assets Being Amortized,
Net 3,241 (610) — 165 2,466
Capital Assets Being Depreciated :
Buildings and Improvements 1,522,789 10,911 — 2 1,533,698 Machinery and Equipment 110,135 9,980 — — 120,115
Infrastructure 883,001 17,076 — — 900,077
Total Capital Assets Being
Depreciated 2,515,925 37,967 — 2 2,553,890
Less: Accumulated Depreciation for:
Buildings and Improvements 711,354 52,969 — 11,849 752,474 Machinery and Equipment 68,968 19,612 — 88,580
Infrastructure 251,180 32,050 — — 283,230
Total Accumulated Depreciation 1,031,502 104,631 — 11,849 1,124,284 Total Capital Assets Being
Depreciated , Net 1,484,423 (66,664) — (11,847) 1,429,606 Total Capital Assets, Net $ 1,689,569 $ 31,206 $ — $ 42,712 $ 1,678,063 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
93 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS Depreciation/Amortization was charged to functions as follows (in thousands):
Function Depreciation
Amount
Amortization
Amount
Water System $ 50,865 $ —
Sewer System 29,340 19
Solid Waste Management 510 —
Transit 8,675 —
Airports 11,618 775
Fresno Convention Center 2,048 —
Stadium 1,376 —
Other Enterprise Funds 193 —
Business-type - Internal Service 6 533
Total Business-Type Activities Depreciation and
Amortization Expense $ 104,631 $ 1,327
D. Fiduciary Funds
Capital asset activity related to fiduciary funds for the fiscal year ended June 30, 2024 was as follows (in thousands):
Beginning
Balance Increases Transfers Decreases Ending
Balance
Capital Assets Being Depreciated:
Machinery and Equipment $ 2,987 $ 280 $ — $ 60 $ 3,207
Total Capital Assets Being Depreciated 2,987 10 — 60 3,207 Less: Accumulated Depreciation for:
Machinery and Equipment 2,293 280 — 2,573
Total Accumulated Depreciation 2,293 280 — — 2,573 Total Capital Assets, Net $ 694 $ (270) $ — $ 60 $ 634
Depreciation was charged to functions as follows (in thousands):
Function Amount
Fire & Police Retirement System Pension Trust Funds $ 140 Employee Retirement System Pension Trust Funds 140
Total Fiduciary Activities Depreciation Expense $ 280
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
94 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS E. Construction in Progress
At June 30, 2024, Construction in Progress consisted of the following (in thousands):
Project Title Construction Costs
To Date
Governmental Activities:
Neighborhood Improvements $ 822
Parks Improvements 11,777
Public Protection 5,328
Public Works Improvements 116,267
Other Misc 31,300
Total Governmental Activities 165,494
Business-Type Activities:
Water Capital Projects 11,811
Sewer/Wastewater Capital Projects 46,629
Transit Capital Projects 26,997
Airports Capital Projects 79,963
Stadium Capital Projects 5,459
Total Business-Type 170,859
Total Construction in Progress $ 336,353
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
95 NOTE 5 - PROPERTY, PLANT & EQUIPMENT - CAPITAL ASSETS Note 6. Leases and Subscription-Based Information Technology Arrangements
A. Leases
The accounts for leases in accordance with GASB Statement No. 87, which requires the recognition of a lease liability and an intangible right-to-use (RTU) asset for lease agreements. The City continues to account for lease agreements under these guidelines, recognizing leases as financings of the right-to-use underlying assets.
As a lessee, the City has entered into various lease agreements for land, buildings, and other properties, with lease terms expiring between 2024 and 2053. These agreements do not contain variable payments or guaranteed residual values. In fiscal year 2024, the City recognized lease liabilities and corresponding intangible right-to-use assets for the value of leased assets and the obligations to make future lease payments. Short-term leases (12 months or less) are excluded from the lease liabilities and recognized as outflows of resources (expenditures) in the period incurred. The City has accounted for any renewal options based on the likelihood of their exercise, where renewal periods that are reasonably certain to be exercised are included in the lease term.
Future payments, under these non-regulated leases for each of the next five years and in five- year increments thereafter are as follows (amounts in thousands):
Governmental Activities Business-Type Activities
Principal Interest Principal Interest
2025 $ 5,877 $ 1,256 $ 156 $ 22
2026 4,813 1,184 137 22
2027 3,751 1,157 118 22
2028 3,102 725 99 22
2029 2,596 568 79 22
2030-2034 8,007 1,961 112 66
2035-2039 3,468 313 — —
2040-2044 2,220 313 — —
2045-2049 827 313 — —
Total $ 34,661 $ 7,790 $ 701 $ 176
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 96 NOTE 6 - LEASES As a lessor, the City recognizes a lease receivable and a deferred inflow of resources at the commencement of the lease term, excluding regulated leases subject to external laws or regulations, such as aviation leases. The City continues to follow GASB 87’s guidelines, recognizing revenue from both fixed and variable lease payments (excluding usage-based variables). The lease receivable is measured at the present value of expected payments during the lease term.
Future receipts, under these non-regulated leases for each of the next five years and in five-year increments thereafter are as follows (amounts in thousands):
Governmental Activities Business-Type Activities
Principal Interest Principal Interest
2025 $ 576 75 $ 595 139
2026 240 61 615 126
2027 187 57 639 112
2028 184 53 589 98
2029 187 50 485 85
2030-2034 1,359 214 1411 383
2035-2039 664 59 764 188
2040-2044 141 26 516 121
2045-2049 154 9 500 62
2050-2054 — — 249 8
Total $ 3,692 604 $ 6,363 1,322
In fiscal year 2024, the City recognized $ 4.6 million in amortization expense related to its lease agreements. The City’s leases include agreements with various organizations, such as the New Towers Radio Hut and Carlulu LLC, for governmental purposes. For business purposes, significant agreements include the DHL Building and the Loperena Antenna Site.
B. Subscription-Based Information Technology Arrangements (SBITA) - GASB 96 In fiscal year 2024, the City recognized significant subscription expense as part of the ongoing SBITA contracts. The City has ensured that variable payments (based on usage) are excluded from the SBITA liability calculation, and prepaid amounts are properly recognized as part of the subscription asset. In addition, the City recognizes Subscription-Based Information Technology Arrangements (SBITAs) in accordance with GASB Statement No. 96. SBITA liabilities and intangible right-to-use (RTU) subscription assets are recognized at the commencement of the subscription term, with the liabilities measured as the present value of subscription payments expected to be made during the subscription term. If not explicitly stated in the contract, the City's incremental borrowing rate (IBR) is used for discounting the liability.
The City’s SBITA agreements include Tyler Technologies, Soundthinking, Inc., and Dell, with terms expiring in fiscal years 2025 and 2027. These agreements are non-cancellable and include fixed, prepaid, and fixed-in-substance components. The City has recognized corresponding subscription liabilities and CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 97 NOTE 6 - LEASES intangible RTU subscription assets in accordance with GASB 96, with amortization of the assets on a straight-line basis over the shorter of the subscription term or the useful life of the underlying IT systems.
C. City as SBITA Service Receiver
The City recognizes a subscription liability and an intangible RTU subscription asset at the beginning of an SBITA unless it is considered a short-term SBITA. A subscription liability is measured at the present value of subscription payments expected to be made during the subscription term using the City's incremental borrowing rate. The City's SBITA contracts have terms expiring between 2024 and 2028.
A subscription asset is amortized on a straight-line basis over the shorter of the subscription term or the useful life of the underlying subscription asset. Remeasurement of subscription liability occurs when there is a change in the subscription term and/or other changes that are likely to have a significant impact on the subscription liability. Variable payments based on the usage of the underlying assets are not included in the subscription liability calculations but are recognized as outflows of resources in the period in which the obligation was incurred.
As of June 30, 2024 , the City's SBITA RTU subscription assets are $13.7 million with accumulated amortization of $7.0 million, while the City's principal and interest requirements to maturity for the SBITA liability are as follows (in thousands):
Year Principal Payments Interest Payments Total Payments 2025 $ 5,799 $ 257 $ 6,056
2026 $ 2,450 $ 90 $ 2,540
2027 $ 607 $ 17 $ 624
Total $ 8,856 $ 364 $ 9,220
D. Discount Rate
Unless explicitly stated in the lease agreement, known by the City, or the City is able to determine the rate implicit within the lease, the discount rate used to calculate lease right-to-use assets and liabilities and related lease receivable is the City’s incremental borrowing rate at the end of each fiscal year. As of June 30, 2024 , the City's incremental borrowing rate was 3.48%. This was the discount rate utilized for applicable leases reported in fiscal year 2024. All applicable leases reported in the prior fiscal year used a discount rate of 2.79%, which was the City's incremental borrowing rate as of June 30, 2023.
E. Variable Payments
Variable payments based on the future performance of the lessee or lessor or usage of the underlying asset are not included in the measurement of lease assets or liabilities.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 98 NOTE 6 - LEASES F. Regulated Leases
In accordance with GASB Statement No. 87, The City does not recognize a lease receivable and a deferred inflow of resources for regulated leases. Regulated leases are certain leases that are subject to external laws, regulations, or legal rulings, e.g. the U.S. Department of Transportation and the Federal Aviation Administration, regulated aviation leases between airports and air carriers and other aeronautical users.
During the year ended June 30, 2024 , the City recognized the following related to its regulated lease agreements:
Airlines
July 1, 2024 - June 30, 2025 $ 130 — $ 130
July 1, 2025 - June 30, 2026 130 — 130
July 1, 2026 - June 30, 2027 65 — 65
Airlines Totals $ 326 — $ 326
General Aviation
July 1, 2024 - June 30, 2025 $ 864 — $ 864
July 1, 2025 - June 30, 2026 864 — 864
July 1, 2026 - June 30, 2027 864 — 864
July 1, 2027 - June 30, 2028 764 — 764
July 1, 2028 - June 30, 2029 264 — 264
July 1, 2029 - June 30, 2034 1,319 — 1,319
July 1, 2034 - June 30, 2039 1,123 — 1,123
July 1, 2039 - June 30, 2044 861 — 861
July 1, 2044 - June 30, 2049 416 — 416
General Aviation
Totals $ 7,339 — $ 7,339
Government
July 1, 2024 - June 30, 2025 $ 173 — $ 173
July 1, 2025 - June 30, 2026 173 — 173
July 1, 2026 - June 30, 2027 173 — 173
July 1, 2027 - June 30, 2028 173 — 173
July 1, 2028 - June 30, 2029 173 — 173
July 1, 2029 - June 30, 2034 390 — 390
Government
Totals $ 1,256 — $ 1,256
Principal Interest Total
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 99 NOTE 6 - LEASES Real Estate
July 1, 2024 - June 30, 2025 $ 764 — $ 764
July 1, 2025 - June 30, 2026 764 — 764
July 1, 2026 - June 30, 2027 127 — 127
Real Estate
Totals $ 1,655 — $ 1,655
Total $ 10,576 — $ 10,576
Principal Interest Total
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 100 NOTE 6 - LEASES Note 7. 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, 2024 (in thousands):
Primary Government
Governmental
Activities
Business-Type
Activities
Fiduciary
Funds
Total Primary
Government
Long-Term Debt
Revenue and Other Bonds $ 157,435 228,766 — 386,201
Bonds From Direct Placements — 31,830 — 31,830
Tax Allocation Bonds — — — —
Accreted Interest — 2,407 — 2,407
Issuance Premiums/(Discounts) 6,927 5,973 — 12,900
Notes Payable From Direct Borrowings — 391,496 979 392,475 Capital Financing Activities 64,832 — — 64,832
Total Long-Term Debt 229,194 660,472 979 890,645
Other Long-Term Liabilities
Retention Payable 5,868 — — 5,868
Compensated Absences & Health
Retirement Arrangement 97,547 14,790 67 112,404
Net OPEB Liability 78,378 31,071 — 109,449
Liabilities for Self-Insurance 266,674 — — 266,674
Accrued Closure Cost — 9,244 — 9,244
Pollution Remediation — 279 — 279
Leases and Subscription Obligations (GASB
87&96) 16,268 2,498 18,766
Total 464,735 57,882 67 522,684
Due Within One Year 105,110 31,506 100 136,716
Due Within More Than One Year 588,818 686,848 946 1,276,612 Total Long-Term Liabilities Government-Wide
Statement of Net Position $ 693,929 718,354 1,046 1,413,329
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-term 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, 2024
101 NOTE 7 - 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 $ 8,700 $ — $ 1,050 7,650 1,110 Taxable Pension Obligation Bonds Refunding
Series 2002 78,255 — 11,065 67,190 11,790
Lease Revenue Bonds 2017A, City Hall Refunding,
Fresno Bee Building, Granite Park, Improvements 15,905 — 1,750 14,155 1,805 Lease Revenue Bonds, Series 2017A, City Hall
Chiller 2,100 — 2,100 — —
Lease Revenue Bonds, Series 2017A
Parks Projects 19,125 — 885 18,240 930
Lease Revenue Bonds, Series 2017A, Police and
Fire/Public Safety 26,475 — 1,115 25,360 1,175
Lease Revenue Bonds, Series 2017A Various 9,545 — 665 8,880 695 Lease Revenue Bonds, Series 2020A, Animal Svcs 16,375 — 415 15,960 435 Total Revenue and Other Bonds 176,480 — 19,045 157,435 17,940 Unamortized Amounts:
For Issuance Premiums/(Discounts) 7,756 — 829 6,927 — Financed Capital Purchases 49,606 27,932 12,707 64,832 11,488 Total Long-term Debt 233,842 27,932 32,581 229,194 29,428 Other Long-Term Liabilities:
Retention Payable 4,675 1,192 — 5,868 5,868
Compensated Absences and Health Retirement
Arrangement 92,083 19,500 14,036 97,547 12,980
Net OPEB Liability 79,422 442 1,486 78,378 2,092
Liability for Self-Insurance 238,060 148,038 119,424 266,674 46,136 Leases and Subscription Obligations (GASB
87&96) 15,120 8,170 7,021 16,268 8,605
Total Other Liabilities 429,360 177,342 141,967 464,735 75,682 Governmental Long-term Liabilities Total $ 663,202 205,274 174,548 693,929 105,110 Retention Payable - Variance of $4.4 million is included in the accrued liabilities and not recategorized to retention payable.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
102 NOTE 7 - 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 and (Taxable BABs)
2010 A-2 $ 91,340 — — 91,340 4,090
Lease Revenue Bonds 1998, Exhibit Hall Expansion
Project 901 — — 901 199
Lease Revenue Bonds 2001 A and B, Stadium Project 10,970 — 1,185 9,785 1,130 Airport Revenue Bonds 2007 – Cons. Rental Car 19,950 — 1,070 18,880 645 Airport Revenue Bonds 2023 A & B, Terminal
Expansion & Federal Inspection Station 91,085 — — 91,085 1,620 Lease Revenue Bonds 2017A, Exhibit Hall Expansion
Project 7,925 — 1,865 6,060 1,095
Lease Revenue Bonds 2017A – Convention Center 2,315 — 770 1,545 490 Lease Revenue Bonds 2017A, Stadium Project 8,815 — 920 7,895 970 Lease Revenue Bonds 2017A - Riverside Golf Course 1,340 — 65 1,275 70 Total Revenue and Other Bonds 234,641 — 5,875 228,766 10,309 Bonds Payable From Direct Placements:
Airport Revenue Bonds 2019 - Airport Parking 32,660 — 830 31,830 856 Plus Accreted Interest:
Accreted Interest on Capital Appreciation Bonds 2,224 183 — 2,407 — Unamortized Amounts
For Issuance Premiums/(Discounts) 5,797 777 601 5,973 — Notes Payable From Direct Borrowings:
Construction of Water Supply Disinfection Buildings 938 — 101 837 103 Improvements on the Enterprise and Jefferson Canals 599 — 65 535 66 Water Meter Project 28,273 — 2,570 25,703 2,570
Southeast Surface Water Treatment Facility 154,193 — 4,692 149,501 4,982 Tertiary Treatment Facility 26,320 — 1,023 25,297 1,033 Northeast Surface Water Treatment Facility 13,348 — 577 12,770 376 Friant-Kern Canal Raw Water Pipeline 18,507 — 607 17,900 617 Regional Transmission Mains 61,138 — 1,869 59,269 1,899 Kings River Pipeline 49,992 — 1,641 48,352 1,667
Southwest Quadrant Recycled Water Distribution
System 66,753 — 15,421 51,333 1,598
Total Notes Payable 420,061 — 28,566 391,496 14,912 Total Long-Term Debt 695,383 960 35,872 660,472 26,077 Other Long-Term Liabilities:
Compensated Absences and Health Retirement
Arrangement 14,289 3,626 3,125 14,790 2,535
Net OPEB Liability 31,560 178 668 31,071 845
CVP Litigation Settlement 103 103 — —
Accrued Closure Cost 10,426 — 1,183 9,244 900
Pollution Remediation 368 — 89 279 —
Lease Obligations 2,685 — 186 2,498 1,149
Total Other Long-Term Liabilities 59,431 3,804 5,354 57,882 5,429 Business-type Long-term Liabilities Total $ 754,814 $ 4,765 $ 41,225 $ 718,354 $ 31,506 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
103 NOTE 7 - 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:
Unamortized Amounts:
For Issuance Premiums/(Discounts) $ — $ — $ — $ — $ —
Total Unamortized Amounts — — — — —
Notes Payable From Direct Borrowings:
California Infrastructure Bank 1,059 — 80 979 83
Total Notes Payable From Direct Borrowings 1,059 — 80 979 83 Total Long-Term Debt 1,059 — 81 979 83
Other Liabilities:
Compensated Absences 65 14 11 67 17
Total Other Long-Term Liabilities 65 14 11 67 17
Fiduciary Funds Long-Term Liabilities Total $ 1,124 $ 14 $ 92 $ 1,046 $ 100 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
104 NOTE 7 - LONG-TERM LIABILITIES The following is a description of Long-Term Debt, Excluding Capital Financing Obligations, which had activity in 2024 (in thousands):
Governmental
Revenue and Other Bonds
Taxable Pension
Obligation Bonds 2002
$205,335
taxable
Refund 2000
Taxable Pension
Obligation Bonds
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. During 2024
$14,072 was used from General Fund and $2,119 was
used form Enterprise Funds and Internal Service Funds to make the 2024 debt service payment of $16,191
$11,790 to
$15,195
$ 67,190 $ 0 $ 67,190 $ 80,950 $ 16,191
Fresno Joint Powers
Financing Authority:
Lease Financing
Refunding 2017 B, Bee
Bldg & Granite Park
B = $21,980
taxable
Fresno Bee Building
and Granite Park
3.48% to
4.16%
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 $2,367 was equal to debt service in 2024.
$1,805 to
$2,270
14,155 0 14,155 16,544 2,367
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Convention Center
Parking Garage
A = $12,435
tax-exempt
Refinance
Convention Center
Parking Garage
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 $1,142 was equal to debt service in 2024.
$40 to $1,785 9,800 (920) 8,880 12,630 1,142
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
2004 C, Convention
Center Parking Garage
C = $28,870
taxable
Convention Center
Parking Garage
5.900% 4/28/2004 10/1/2034 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,532 was equal to debt service in 2024.
$1,110 to
$1,400
7,654 (4) 7,650 9,067 1,532
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 $1,819 was equal to debt service in 2024.
$930 to
$1,755
19,903 (1,663) 18,240 25,490 1,819
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 $2,382 was equal to debt service in 2024.
$1,175 to
$2,300
27,544 (2,184) 25,360 35,809 2,382
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 under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,122 was equal to debt service in 2024.
$435 to
$1,075
18,115 (2,155) 15,960 24,630 1,122
Revenue and Other Bonds Total $ 164,362 $ (6,927) $ 157,435 $ 205,121 $ 26,556 Governmental Total $ 164,362 $ (6,927) $ 157,435 $ 205,121 $ 26,556 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
2024 Debt
Service
Payment
105 NOTE 7 - LONG-TERM LIABILITIES Business-Type
Revenue and Other Bonds
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 2024, a federal Build
America Bonds subsidy of $2,038 was received.
$4,090 to
$7,715
$ 90,506 $ 834 $ 91,340 $ 149,018 $ 6,097
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)
5.00% 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 2024 the City chose to make these
lease payments from the General Fund in the amount of
$566, which was equal to debt service in 2024. 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.
$490 to $540 1,625 (80) 1,545 1,702 566
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
5.00% 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 $1,406, which was equal to debt service in 2024. 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.
$1,095 to
$1,330
$ 6,479 $ (419) $ 6,060 $ 6,998 $ 1,406
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 2024, 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 $199 3,285 (2,383) 902 3,750 750
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Stadium Project
A = $13,510
tax-exempt
Refinance
MultiPurpose
Stadium Project
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. During 2024, the City chose to make these lease payments from the General Fund in the amount of
$1,366, 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.
$970 to
$1,300
8,538 (643) 7,895 9,551 1,366
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
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 2024, the City chose to make these lease payments from the General Fund in the amount of
$1,817, 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.
$130 to
$1,700
9,792 (7) 9,785 12,722 1,817
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
2024 Debt
Service
Payment
106 NOTE 7 - LONG-TERM LIABILITIES 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
5.00% 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 2024, the City chose to make these lease payments from the General Fund in the amount of
$130, 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.
$70 to $125 $ 1,392 $ (117) $ 1,275 $ 1,781 $ 130
Airport Revenue Bonds
2007, Consolidated
Rental Car Facility
$22,000
taxable
Construction of a
Consolidated Rental
Car Facility and
related
improvements
5.83% 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 2024 $1,688 of CFC revenues was used to fully cover the debt service payment.
$645 to
$2,265
18,880 0 18,880 28,229 1,688
Airport Revenue Bonds
2019, Airport Parking
$35,000
taxable
Construction of a
Parking Garage
3.45% 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.
$856 to
$1,802
31,830 0 31,830 47,310 1,942
Airport Revenue Bonds
2023, Airport Concourse
& Federal Inspection
Station
A = $94,485
AMT B =
$5,690 Non-
AMT
Construction of
Concourse and
Federal Inspection
Station
5.00% 5/25/2023 7/1/2053 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).
$1,620 to
$4,830
96,649 (5,564) 91,085 164,964 2,685
Revenue and Other Bonds Total $ 268,976 $ (8,379) $ 260,597 $ 426,025 $ 18,447 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
0.00% 4/10/2012 7/16/2034 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 to
$2,570
$ 25,703 $ 0 $ 25,703 $ 25,703 $ 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)
2.29% 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 $119 837 0 837 916 122
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
2.29% 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 $76 535 0 535 585 78
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
2024 Debt
Service
Payment
107 NOTE 7 - LONG-TERM LIABILITIES Water: Drinking Water
State Revolving Fund
Project 1010007-029C
$21,379
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of
the Friant-Kern
Canal Raw Water
Pipeline
1.60% 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.
$607 to $890 $ 17,900 $ 0 $ 17,900 $ 22,642 $ 901
Water: Drinking Water
State Revolving Fund
Project 1010007-028C
$177,894
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Southeast Surface
Water Treatment
Facility
1.66% 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 $3,722. $3 million of the loan was forgiven by the State Water
Resources Control Board.
$3,691 to
$7,292
149,501 0 149,501 181,737 7,444
Water: Drinking Water
State Revolving Fund
Project 1010007-030C
$67,437
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
1.60% 8/23/2016 1/1/2050 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 $1,420.
$1,409 to
$2,784
59,269 0 59,269 59,887 2,840
Water: Drinking Water
State Revolving Fund
Project 1010007-031C
$57,615
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Kings River Pipeline
1.60% 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 $1,217.
$1,641 to
$2,405
48,352 0 48,352 55,195 2,434
Water: Drinking Water
State Revolving Fund
Project 1010007-032C
$13,652
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Northeast Surface
Water Treatment
Facility
1.80% 11/26/2016 1/1/2051 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 $304.
$369 to $635 12,770 0 12,770 13,239 812
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
1.00% 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 in parity with State loans for Sewer.
Principal and interest due in annual installments of $1,286. $1,023 to
$1,282
25,297 0 25,297 28,308 1,286
Sewer: Clean Water
State Revolving Fund
Project No. 8061-110
$54,484
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
1.00% 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 in parity with State loans for Sewer.
Principal and interest due in semiannual installments of $1,056.
$1,582 to
$2,090
51,333 0 51,333 59,109 2,111
Notes Payable Total $ 391,496 $ 0 $ 391,496 $ 447,320 $ 20,599 Business-Type Total $ 660,472 $ (8,379) $ 652,093 $ 873,345 $ 39,046 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
2024 Debt
Service
Payment
108 NOTE 7 - LONG-TERM LIABILITIES Fiduciary
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
3.53% 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.
$80 to $114 $ 979 $ 0 $ 979 $ 1,161 $ 116
Notes Payable Total $ 979 $ 0 $ 979 $ 1,161 $ 116
Fiduciary Total $ 979 $ 0 $ 979 $ 1,161 $ 116
Grand Total $ 825,813 $ (15,306) $ 810,507 $ 1,079,627 $ 65,718 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
2024 Debt
Service
Payment
109 NOTE 7 - LONG-TERM LIABILITIES B. Debt Service Requirements (Excluding Capital Financing Activities) The annual debt service requirements excluding capital financings for the City's long-term debt outstanding as of June 30, 2024 are as follows (in thousands):
Governmental Activities Business-Type Activities Fiduciary Funds Year Ending
June 30 Principal Interest Principal
Interest
Accretion Interest Principal Interest
2025 $ 17,940 $ 8,610 10,309 $ 551 $ 13,650 $ — $ —
2026 18,270 7,546 11,059 561 13,048 — —
2027 19,370 6,450 12,945 570 12,346 — —
2028 20,535 5,285 13,071 579 11,605 — —
2029 21,775 4,040 13,752 588 10,852 — —
2030-2034 30,170 10,614 53,635 — 40,454 — —
2035-2039 22,660 4,025 53,295 — 24,707 — —
2040-2044 4,605 989 21,510 — 11,453 — —
2045-2049 2,110 127 39,190 — 11,096 — —
2050-2054 — — — — — — —
2055-2059 — — — — — — —
Subtotal 157,435 47,686 228,766 2,848 149,209 — — Direct Direct Direct Direct Direct Direct
Borrowings Borrowings Borrowings Borrowings Borrowings Borrowings Principal Interest Principal Interest Principal Interest 2025 — — 15,768 6,566 83 33
2026 — — 15,982 6,348 86 30
2027 — — 16,201 6,127 89 27
2028 — — 16,423 5,902 93 24
2029 — — 16,649 5,673 96 21
2030-2034 — — 86,266 24,787 532 48
2035-2039 — — 79,098 18,502 — —
2040-2044 — — 85,840 11,643 — —
2045-2049 — — 82,258 4,173 — —
2050-2054 — — 8,842 138 — —
2055-2059 — — — — — —
Subtotal — — 423,326 89,859 979 183
Issuance
Premiums/
(Discounts) 6,927 — 5,973 — — — —
Unaccreted Interest — — 2,407 (539) — — —
Total $ 164,362 $ 47,686 $ 237,146 $ 2,309 $ 239,069 $ — $ — C. Debt Compliance
There are a number of limitations and restrictions contained in the various loan, note and bond indentures. The City is in compliance with all significant limitations, restrictions and covenants.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 110 NOTE 7 - 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, 2024 , the City’s debt limit (20% of valuation subject to taxation) was $ 9.9 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 $9.1 billion in 2023. 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, 2024 111 NOTE 7 - 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, 2024, the City had no arbitrage liability.
G. State Loan Program (Projects Currently In Progress)
On August 19, 2015 , the City entered into a 30-year agreement to borrow $ 70,600,000 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 is due in semiannual installments on the amount received by the City through the interest payment date. As of June 30, 2024 , the City has received $68,322,664 in proceeds. Debt service payments will be funded from revenues of the Sewer Enterprise.
Construction is now complete and annual debt is $2,111,023.
On November 26, 2016, the City entered into a 30-year agreement to borrow $14,000,000 from the California State Water Resources Control Board for construction of a new surface water treatment facility in the northeast portion of 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. As of June 30, 2024 , the City has received $13,651,557 in proceeds. Construction is now complete and the annual debt is $607,971.
H. Capital Financing Activities
The Fresno Yosemite International Airport received $70 million from the issuance of Series 2023 Bonds for the capital costs of the Terminal/FIS Expansion Project, net of fund deposits and Issuance Costs. The total estimated cost of the project is anticipated to be $145.1 million and will provide the design and construction of:
• An expanded security checkpoint to provide a minimum of 5 lanes and related offices for Transportation Security Administration (TSA).
• A new concourse to the east of the expanded security checkpoint, with two additional gates on the second floor equipped with loading bridges.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 112 NOTE 7 - LONG-TERM LIABILITIES • A new FIS facility with a target throughput of 400 arrivals per hour compared to the current capacity of 150 arrivals per hour, with a baggage claim unit located on the first floor of the new concourse and the processing facility to the east.
• An in-line baggage screening facility between the expanded security checkpoint and the new concourse.
• Additional airline ticket offices in the existing ticket lobby, converted from prior baggage makeup and screening space.
• Other supporting concession space.
Additional costs for this project will be paid by grants and cash on hand.
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 agreement. These agreements qualify as capital financing activities for accounting purposes. Prior capital financing agreements with outstanding balances are with 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 finance the purchase of computers. Each schedule represents a separate capital financing purchase with annual upfront payment terms provided by the lender at the time the computers are purchased. To date, there have been forty-five 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, 2024, only one of these financed purchases remain outstanding.
On January 13, 2017, the City entered into a Master Equipment Lease-Purchase Agreement with Banc of America Public Capital Corp. (BAPCC). Each schedule represents a separate capital financing with annual upfront payment terms provided by the lender at the time the equipment is purchased. There were nineteen schedules 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 agreement which was $25 million.
On December 6, 2018, the City entered into a new Master Equipment Lease-Purchase Agreement with BAPCC. This agreement expired on December 31, 2021. There were twenty schedules executed totaling $17,832,047 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, 2024 113 NOTE 7 - LONG-TERM LIABILITIES On January 13, 2022, the City entered into a new Master Equipment Lease-Purchase Agreement with BAPCC. Each schedule represents a separate capital financing with annual upfront payment terms provided by the lender at the time of financing. The purpose of these finance purchases is to finance new and replacement equipment throughout the City. To date, there have been twenty one schedules executed totaling $38.97 million with interest rates ranging from 1.66% to 4.52% and terms of five to ten years. This new master agreement was amended to add $20 million to not to exceed amount during fiscal year 2024. This agreement expires on December 31, 2024.
On February 10, 2022, the city entered into a 15-year agreement to borrow $19.9 million from Alliance Building Solutions, Inc for a design-build contract to build turn-key PARCS and Public Safety facilities which will include upgrades to lighting to convert to LED efficient lighting, HVAC upgrades and replacements, system controls and monitoring, lighting controls, and transformer upgrades for implementation of a robust list of energy related and sustainability services. The interest rate is fixed at
2.62% for the term of the lease. Principal and interest due in semiannual installments that begin on August 16, 2022. Expected energy bill savings are expected to exceed $23 million over the life of the agreement by creating 3.5 million kilowatt hours per year, which is equivalent to taking 539 gas-powered vehicles off the road every year or powering nearly 300 homes annually. This aligns with the City's GHG Reduction Plan (Climate Action Plan) Municipal Strategies section 5.1.7 which targets GHG emissions generated at City facilities and operations.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 114 NOTE 7 - LONG-TERM LIABILITIES The following table lists the City’s capital financing activities by lender as of June 30, 2024 (in thousands):
Community First National Bank 7/13/2015 10 2015 Smeal Engines on Spartan Metrostar Chassis (4) 2.92% $ 105 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 2015 Smeal Engine & 2016 Water Tender on Kenworth 2.09% 157 Banc of America Public Capital Corp 5/2/2017 10 Fire Engines & Pumpers 2.52% 464 Banc of America Public Capital Corp 11/23/2017 7 Microwave Date & Radio Console Network 2.46% 392 Banc of America Public Capital Corp 6/26/2018 10 Fire Ladder Truck & Pumpers (3) 3.16% 371 Banc of America Public Capital Corp 5/29/2019 10 Fire Pumper Trucks (3) 2.83% 239 Banc of America Public Capital Corp 8/30/2019 5 2019 Police Motorcycles (10) 1.90% 38 Banc of America Public Capital Corp 11/12/2019 5 2020 Fire Ford Escapes (4), Ford F-250's (2) 1.95% 30 Banc of America Public Capital Corp 2/11/2020 5 2020 Police U.C. Vehicles (28) 1.97% 197 Alliance Funding Solutions, Inc. 2/21/2020 15 Energy Efficient Equipment and Solar PPA (City Hall & MSC) 2.95% 467 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 Dell Financial Services 5/1/2020 4 Computers Various Models (55) 4.28% 14 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 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-250 (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 Banc of America Public Capital Corp 11/3/2021 5 2021 Undercover Vehicles (5) 1.32% 42 Banc of America Public Capital Corp 2/8/2022 5 2021 Fire Ford F-350 Chassis (8) 1.66% 153 Banc of America Public Capital Corp 2/16/2022 15 Energy Efficient Project 2.62% 1,162 Banc of America Public Capital Corp 5/11/2022 5 2022 Fire Ford Vehicles (13) 2.76% 163 Banc of America Public Capital Corp 6/16/2022 5 2022 Dodge Durangos (33) 2.70% 622 Banc of America Public Capital Corp 12/3/2022 10 Fire Engines (2) & Fire Truck 3.75% 374 Banc of America Public Capital Corp 1/20/2023 5 Police Vehicles (27 3.86% 336 Banc of America Public Capital Corp 4/20/2023 5 Fire Ford F-250 3.66% 28 Banc of America Public Capital Corp 6/29/2023 5 2023 Fire Ford Maverick 3.81% 17 Banc of America Public Capital Corp 6/29/2023 5 Trolleys (3) 3.86% 192 Banc of America Public Capital Corp 6/29/2023 5 Police BMW Motorcycles (26) 3.86% 224 Banc of America Public Capital Corp 7/5/2023 5 2023 Dodge Durangos (105) & Northstar Veh 3.93% 1,958 Banc of America Public Capital Corp 7/12/2023 5 2023 Toyota Camrys (3) 4.04% 23 Banc of America Public Capital Corp 10/2/2023 5 2023 Toyota Prius' (10) 4.27% 67 Banc of America Public Capital Corp 10/5/2023 10 Self-Contained Breathing Aparatus (SCBA) 4.36% 551 Banc of America Public Capital Corp 10/11/2023 5 2023 Isuzu Truck 4.36% 19 Banc of America Public Capital Corp 11/28/2023 10 2023 Smeal Ladder Truck 4.43% 175 Banc of America Public Capital Corp 1/3/2024 5 2023 Undercover Vehicles (70) 4.00% 668 Banc of America Public Capital Corp 1/8/2024 10 2023 Fire Engines (2) 3.92% 216 Banc of America Public Capital Corp 1/8/2024 10 Spartan Rescue Truck 4.12% 160 Banc of America Public Capital Corp 2/26/2024 5 2024 Trucks (6) and Van 3.82% 148 Banc of America Public Capital Corp 5/24/2024 5 2024 Durangos (50) & BMW Motorcycles (15) 4.41% 1,260 Banc of America Public Capital Corp 5/24/2024 10 Bearcat 4.52% 55 Total $ 13,247
Lender
Date of
Loan
Term
(Years) Purchased
Interest
Rate
Annual
(P&I Payment)
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 115 NOTE 7 - LONG-TERM LIABILITIES Capital Financing Activities 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
2025 $ 11,488 $ 2,010
2026 10,419 1,663
2027 9,742 1,330
2028 8,399 1,005
2029 5,277 733
2030-2034 14,782 1,876
2035-2039 4,725 207
Total $ 64,832 $ 8,824
I. General Fund Short-Term Borrowing Obligations
The City did not issue any short-term debt during fiscal year 2024 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, 2024 (in thousands):
Line of Credit
Contract
Amount Used Unused
Banc of America Public Capital Corporation
Airport Leases $ 70,000 $ 20,465 $ 49,535
Police Vehicle Leases 21,320 16,641 4,679
Fire Vehicle Leases 6,848 4,472 2,376
Downtown Trolleys 866 731 135
Information Service Department Leases 319 $ — 319
Total $ 99,353 $ 42,308 $ 57,045
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 116 NOTE 7 - 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 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:
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 117 NOTE 7 - LONG-TERM LIABILITIES 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 (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.
The City’s note and loan agreements do not contain Subjective Acceleration Clauses.
Capital Financing Activities
For all City's financed purchases 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 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 118 NOTE 7 - LONG-TERM LIABILITIES 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 and (2) exercise any other remedies available by law.
For the City's financed purchases 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 financed purchases 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 leased 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 finance agreements do not contain Subjective Acceleration Clauses.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 119 NOTE 7 - LONG-TERM LIABILITIES Note 8. 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 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, 2024, is as follows (in thousands):
General Fund Grants Special Revenue Fund $ 554
Nonmajor Governmental Funds 255
Enterprise Funds 783
Internal Service Funds 6,928
8,520
Grants Special Revenue Fund General Fund 722
Nonmajor Governmental Funds 1,474
Internal Service Funds 2,216
4,412
Nonmajor Governmental Funds General Fund 1,686
Grants Special Revenue Fund 1,307
Nonmajor Governmental Funds 10
Internal Service Funds 4,339
7,342
Water System Nonmajor Governmental Funds 3
Solid Waste Internal Service Funds 1
Transit Internal Service Funds 12
Internal Service Funds General Fund 1,700
Grants Special Revenue Fund 35
Nonmajor Government Funds 664
Water System 136
Sewer System 163
Solid Waste Management 808
Transit 143
Airports 62
Nonmajor Enterprise Funds 102
Internal Service Funds 21
3,833
Total Due to/from Other Funds $ 24,124
Receivable Fund Payable Fund Amount
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
120 NOTE 8 - INTERFUND ACTIVITY B. Advances
Advances represent long-term borrowing between funds.
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 1/5th 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 $291,540. As of June 30, 2024, $3.9 million of proceeds from this loan had been transferred to the Fire Station 18 Construction Fund, $2.9 million had been repaid and $0.9 million remains outstanding.
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 Utility 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 1st and April 1st of each fiscal year. As of June 30, 2024, all $ 3.7 million of proceeds from this loan had been transferred to the Solid Waste Fund, $2.2 million had been repaid and $1.5 million remains outstanding.
Interfund Loan
On June 30 2024, a loan was executed between the City of Fresno Sewer System Rate Stabilization Connection Fee (CIP Reserve) Fund, and the City of Fresno Solid Waste Management Division Solid Waste Operating Enterprise Fund, whereby funds were loaned to the Solid Waster Operating Enterprise Fund to cover operating costs necessary to continue services and to avoid depleting reserves. An amount not to exceed $5 Million was borrowed from Sewer System Rate Stabilization Connection Fee Fund. The term of the loan will be 5 years from the effective date of the loan and will accrue interest at a rate equal to the City's pooled rate, which was 3.40% at the loan agreement effective date. The term of the loan will be 5 years from the effective date of the loan, or June 30, 2029. The Solid Waste Operating Enterprise Fund shall make payments in the amount of 1/10th of the loan amount and interest payments twice per year on January 1st and July 1st of each fiscal year. As of June 30, 2024, all $5.0 million of CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
121 NOTE 8 - INTERFUND ACTIVITY proceeds from this loan had been transferred to the Solid Waste Operating Enterprise Fund and $0 million 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 allowance for doubtful accounts amount and refined it. At the end of fiscal year 2024, the allowance for doubtful accounts stood at $ 6.7 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 2024, this amount totaled $ 0.4 million. The repayment is reflected in 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 Fund related loans would go toward the rebuilding of the City’s Emergency Reserve Fund. Through June 30, 2024, the City had received $ 36.8 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 | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
122 NOTE 8 - INTERFUND ACTIVITY 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 $ 671 $ 25 $ — $ 696 $ 1,534 $ (1,534) $ — Parking Trust 150 — — 150 121 5 — 125 275 (275) — 988 — — 988 792 30 — 822 1,809 (1,809) —
Grants Special
Revenue Fund 2,769 — (1,728) 1,042 3,999 31 (272) 3,758 4,800 (2,234) 2,566 Nonmajor
Governmental Funds:
Gas Tax 1,150 — — 1,150 927 35 — 962 2,112 (2,112) — 1,150 — — 1,150 927 35 — 962 2,112 (2,112) —
Fresno Convention
Center 304 — — 304 237 9 — 246 550 (551) (1) 304 — — 304 237 9 — 246 550 (551) (1)
Total $ 5,211 $ — $ (1,728) $ 3,484 $ 5,955 $ 105 $ (272) $ 5,788 $ 9,271 $ (6,706) $ 2,565 Subsequent to fiscal year-end, the City received a reimbursement on loans made to the former RDA.
The amount received was $ 2.0 million, of which $ 1.6 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
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 1/29th 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
123 NOTE 8 - INTERFUND ACTIVITY The composition of interfund balances (advances from/to other funds) as of June 30, 2024, is as follows (in thousands):
Receivable Fund Payable Fund Amount
Grants Special Revenue Fund General Fund $ 540
Fiduciary Funds 2,565
3,105
Water System Nonmajor Governmental Funds 467
Solid Waste 1,485
1,951
Sewer System General Fund 211
NonMajor Governmental Funds 480
Solid Waste 5,000
5,691
Total Advances $ 10,747
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, 2024
124 NOTE 8 - INTERFUND ACTIVITY The following is a summary of interfund transfers for the fiscal year ended June 30, 2024 (in thousands):
Receiving Fund Paying Fund Amount
General Fund Grants Special Revenue Fund $ 2,161
Nonmajor Governmental Funds 2,353
Water System 490
Solid Waste Management 708
Transit 597
6,309
Grants Special Revenue Fund General Fund 431
Nonmajor Governmental Funds 1,270
Nonmajor Enterprise Funds 1
1,702
Nonmajor Governmental Funds General Fund 23,167
Grants Special Revenue Fund 545
Nonmajor Governmental Funds 4,099
Water System 315
Sewer System 282
Solid Waste Management 268
Transit 789
Airports 259
Nonmajor Enterprise Funds 85
Internal Service Funds 799
30,608
Water System Sewer System 238
238
Solid Waste Management General Fund 473
Nonmajor Enterprise Funds 1,000
1,473
Fresno Convention Center General Fund 4,361
Stadium General Fund 5,552
Nonmajor Enterprise Funds General Fund 257
257
Internal Service Funds General Fund 1,283
Water System 782
Sewer System 24
Solid Waste Management 715
2,804
Total Transfers $ 53,306
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
125 NOTE 8 - INTERFUND ACTIVITY The General Fund transferred $ 23.17 million to Nonmajor Governmental Funds to provide support for debt service payments and capital projects; $ 4.36 million to the Convention Center for debt service as well as general operating support; $ 1.28 million to Internal Service Funds for provided services; $0.43 million to Grants Special Revenue Fund; $0.47 million to Solid Waste; $0.26 million to Nonmajor Enterprise Funds; and $5.55 million to the Stadium Fund for debt service payments.
Nonmajor Governmental Funds transferred $ 7.72 million for debt service and miscellaneous purposes.
Internal Service Funds transferred $ 0.80 million to Nonmajor Governmental Funds for debt service payments.
D. Recap of Interfund Activity
The following schedule recaps Interfund Activity as of and for the year ended June 30, 2024 (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 $ 8,520 $ 4,107 $ 751 $ 6,309 $ 35,526
Grants Special Revenue Fund 4,412 1,895 3,105 — 1,702 2,706 Nonmajor Governmental Funds 7,341 2,407 — 947 30,609 7,721 Total Governmental Funds 20,273 8,409 3,105 1,698 38,619 45,953 Proprietary Funds:
Water System 3 626 1,951 — 238 1,587
Sewer System — 163 5,691 — — 544
Solid Waste Management 1 1,063 — 6,485 1,474 1,692 Transit 12 143 — — — 1,386
Airports — 62 — — — 259
Fresno Convention Center — — — — 4,361 —
Stadium — — — — 5,552 —
Nonmajor Enterprise Funds — 140 — — 258 1,086
Internal Service Funds 3,833 13,518 — — 2,804 799 Total Proprietary Funds 3,851 15,715 7,643 6,485 14,687 7,353 Fiduciary Funds:
Major Governmental Funds — — — 2,565 — —
Total Fiduciary Funds — — — 2,565 — —
Total $ 24,124 $ 24,124 $ 10,748 $ 10,748 $ 53,306 $ 53,306 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
126 NOTE 8 - INTERFUND ACTIVITY Note 9. Defeasances
Current Year Defeasances
In fiscal year 2024, the City did not engage in any defeasances or refundings of outstanding debt. A defeasance is typically used to set aside funds to pay off bonds early, while a refunding involves issuing new bonds to replace existing ones, often to take advantage of more favorable interest rates. However, for this particular fiscal year, the City did not pursue either of these strategies, maintaining its existing debt structure without making early redemptions or restructuring through new bond issuances. This decision reflects the City's approach to managing its financial obligations without altering the terms of its outstanding debt during this period.
Prior Year Defeasances
On May 1, 2023, the City issued Airport Revenue Bonds, Series 2023A and 2023B with a Par Amount of $91,085,000. Part of the issuance was to defease the Airport Revenue Bonds, Series 2013A and 2013B on their next interest payment due date of July 1, 2023. Airport Revenue Bonds, Series 2013A and 2013 B had an outstanding Par Amount at defeasance of $20,095,000. Bond proceeds were placed into an escrow account and were used to pay the bonds off July 1, 2023.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
127 NOTE 9 - DEFEASANCES Note 10. 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 $25 million aggregate in Excess Liability coverage. There is a $ 5 million self-insured retention (SIR).
Coverage is provided by the Safety National Insurance Company ($ 5 million /$5 million ), Allied World Insurance Company ($ 10 million /$10 million ), StarStone Specialty ($ 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 coverage with a $ 5 million limit secured through Hanover Insurance Company with a $50,000 deductible. The City has Cyber liability coverage under Indian Harbor with a $500,000 SIR and a $ 5 million limit and excess Cyber liability coverage under Starr Surplus Lines Insurance Company ($ 5 million /$5 million ). 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 $2,246,786,040 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 Old Republic Aerospace Corporate Administration.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
128 NOTE 10 - RISK MANAGEMENT FUND The City’s Workers’ Compensation Program consists of $2 million SIR, with purchased excess insurance layers up to the statutory limits. One settled claim exceeded the SIR within 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.
The estimated liabilities of the Risk Management ISF as of June 30, 2024 , 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 $260.3 million reported in the Risk Management Internal Service Fund at June 30, 2024 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, 2024 are as follows (in thousands):
Workers' Compensation * $ 165,631
Liability and Property Damage * 94,643
Total $ 260,274
* 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 three 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
2022 $ 185,733 $ 45,009 $ 30,215 $ 200,527
2023 $ 200,527 $ 65,117 $ 35,484 $ 230,160
2024 $ 230,160 $ 78,526 $ 48,412 $ 260,274
See Note 11 Section G for changes in funds claims liability related to Employees Healthcare Plan.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
129 NOTE 10 - RISK MANAGEMENT FUND Note 11. 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, 2024:
Employees Fire & Police Total
Active Members
Vested 1,458 843 2,301
Non-Vested 1,509 383 1,892
Total Active Members 2,967 1,226 4,193
Retirees and Beneficiaries of Deceased Retirees
Retirees, Currently Receiving Benefits 2,303 1,220 3,523 Inactive Vested Members 240 71 311
Total Retirees and Inactive Members 2,543 1,291 3,834 Grand Total 5,510 2,517 8,027
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 130 NOTE 11 - 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 actuarial 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, 2024
131 NOTE 11 - 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, 2024
132 NOTE 11 - 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 Generally Accepted 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, 2024 , the annual money-weighted rate of return on pension plan investments, net of investment expense was 10.4%, 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, 2024
133 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Reporting
The following data is for employer reporting as required by GASB Statement No. 68 as of June 30, 2024.
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, 2023. 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, 2023;
• The assets of each Plan as of June 30, 2023;
• 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, 2023 and determined from the actuarial valuations as of June 30, 2023. 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, 2023 were not adjusted or rolled forward to the June 30, 2024 reporting date. The discount rates used for each Plan to determine the TPL and NPL as of June 30, 2023 was 6.75%, 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 actuarial 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, 2023 , for 2022-2023 (based on the June 30, 2024 valuation) was 13.4% of compensation. The average employee member contribution rate as of June 30, 2024 for 2023-2024 (based on the June 30, 2024 valuation) was 8.9% of compensation.
For the Fire and Police System, the average employer contribution rate as of June 30, 2024 , for 2023-2024 (based on the June 30, 2024 valuation) was 21.0% of compensation. The average employee member contribution rate as of June 30, 2024 for 2023-2024 (based on the June 30, 2024 valuation) was
9.0% of compensation.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
134 NOTE 11 - 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, 2024 for 2023-2024 (based on the June 30, 2024 valuation) was 0.0% of compensation. Employee contribution rates in the Second Tier are established at 9.0% of pensionable base pay.
The aggregate employer contribution rate for the Fire and Police System as of June 30, 2024 for 2023-2024 (based on the June 30, 2024 valuation) was 21.1% 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, 2024, the Systems did not have UAAL.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
135 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS 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 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 end on June 30, 2024 , the actuarial valuation value of the Employees’ System assets was $ 1.6 billion with a funded percentage of 109.8% on a valuation value of assets, whereas the actuarial value of Fire and Police assets was $ 2.0 billion with a funded percentage of 114.9% 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 2024, the City’s required normal contributions (basic and COLA) to the Systems were as follows (in thousands):
Normal Cost
Employees System
FY 2024
Employer Contributions $ 30,152
Prior Year Contribution (Surplus)/Shortfall (1,531)
Net Employer Contributions $ 28,621
Pensionable Payroll $ 213,008
Member Contributions $ 18,833
Employer Contribution Rate 14.15%
Employer and employee contributions represented 13.4% and 8.9% respectively, of the fiscal year 2024 covered payroll for the Employees System.
Normal Cost
Fire and Police System
(In Thousands)
FY 2024
Tier 1 Tier 2 Total
Employer Contributions $ 64 $ 37,048 $ 37,112
Prior Year Contribution (Surplus)/Shortfall (118) (6,359) (6,477) Net Employer Contributions $ (54) $ 30,689 $ 30,635
Pensionable Payroll $ 210 $ 145,459 $ 145,669
Member Contributions $ 13 $ 13,095 $ 13,108
Employer Contribution Rate 30.25% 25.47 %
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
136 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Employer and employee contributions represented 21.0% and 9.0%, respectively, of the fiscal year 2024 covered payroll for the Fire and Police System.
Net Pension Asset
The net pension liability (asset) reported as of June 30, 2024 was measured as of June 30, 2023 , and determined based upon the total pension liability (on GASB Statement No. 68 basis) from actuarial valuations as of June 30, 2023.
The City’s total pension liability, plan fiduciary net position, and net pension liability (asset) for each System as of June 30, 2024 were as follows (in thousands):
Employees
System
Fire and Police
System
Total Pension Liability $1,566,983 $ 1,865,741
Plan Fiduciary Net Position (1,683,313) (2,045,837)
Net Pension Liability (Asset) $ (116,330) $ (180,096)
Plan Fiduciary Net Position as a percentage of the total pension liability 107.42% 109.65%
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
137 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Changes in Net Pension Liability (Asset)
The components of the net pension liability (asset) for each System as of June 30, 2024 and a measurement date of June 30, 2023 were as follows (in thousands):
Employees
System
Fire and Police
System
Total Pension Liability (Asset)
Beginning Balance $ 1,472,814 $ 1,737,122
Service Cost 37,299 41,190
Interest 99,304 117,304
Differences Between Expected & Actual Experience 35,440 51,061 Benefit Payments, Including Refunds (77,873) (80,937) Changes of Assumptions — —
Net Change in Total Pension Liability 94,170 128,618
Ending Balance $ 1,566,984 $ 1,865,740
Plan Fiduciary Net Position
Beginning Balance $ 1,562,188 $ 1,891,078
Contributions - Employer 22,236 27,068
Contributions - Employee 14,895 12,053
Net Investment Income 164,014 198,976
Benefit Payments (Including Refunds, PRSB) (77,873) (80,937) Administrative & Professional Expense (2,146) (2,402) Net Change in Plan Fiduciary Net Position 121,126 154,758 Ending Balance 1,683,314 2,045,836
Net Pension Liability (Asset) $ (116,330) $ (180,096) CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
138 NOTE 11 - 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 6.75% as of June 30, 2024 and June 30, 2023 . 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 actuarial 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, 2024 and June 30, 2023.
The following presents the NPL of the Employees and Fire and Police Retirement Systems as of June 30, 2024. The Systems use the current discount rate to measure the TPL for the measurement date of June 30, 2023 , as well as what the NPL would be if it were calculated using a discount rate that is 1- percentage-point lower (5.8%) or 1-percentage-point higher (7.8%) than the current rate:
NPL of Employees and Fire and Police Retirement Systems As of June 20, 2023
(In Thousands)
1% Decrease Current
Discount Rate 1% Increase
5.75% 6.75% 7.75%
Employees System $ 67,160 $ (116,330) $ (266,738)
Fire and Police System $ 76,084 $ (180,096) $ (386,356) 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, 2024
139 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Asset Class/Target Allocation/Long-Term Expected
Rate Return Table
As of June 30, 2024
Asset Class
Target Asset
Allocation
Weighted Average
Long-Term Expected
Rate of Return
(Arithmetic)
Large Cap U.S. Equity 18.0% 5.4%
Small Cap U.S. Equity 3.0% 6.17%
Developed International Equity 13.0% 6.13%
Emerging Market Equity 5.0% 8.17%
Private Equity 8.0% 10.83%
Core Bonds 12.0% 0.39%
Private Debt/Direct Lending 14.0% 5.93%
Real Estate 15.0% 4.59%
Private Equity - Credit Opportunities 2.5% 7.18%
China Equity 1.3% 9.53%
Hedge Fund - Macro 1.3% 2.72%
Private Real Estate - Infrastructure/Land 7.0% 6.19%
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 two-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, 2024
140 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Actuarial Assumptions
The TPL as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2023 . The actuarial assumptions used in the valuation were based on the results of an experience study for the period from July 1, 2018 through June 30, 2021.
In particular, the following actuarial assumptions were applied to all periods included in the measurement:
Inflation 2.50%
Salary increases
3.75% to 11.50%, varying by service, including inflation (Employees).
4.00% to 13.00%, varying by service, including inflation (Fire and Police).
Investment rate of return 6.75%, net of pension plan investment expense, including inflation.
Other assumptions
See Appendix A in the ACFR for the Employee's Plan and the Fire/Police Plan 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, 2024 , the City incurred pension expense of $31.9 million for the employees Plan and $38.9 million for the Fire and Police Plan for a total pension expense of $70.8 million.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
141 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS As of June 30, 2024 , 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 $ 37,299 $ 41,190
Interest on the total pension liability 99,304 117,304 Expensed portion of current-period difference between expected and actual experience in the Total Pension Liability 8,729 11,372 Actual member contributions (14,894) (12,054)
Projected earnings on plan investments (104,000) (126,155) Expensed portion of current-period differences between actual and projected earnings on plan investments
Expensed portion of current-period effects of Assumption Changes (12,003) (14,564) Administrative expense 2,146 2,401
Recognition of beginning of year deferred outflows of resources as pension expense 82,698 100,840 Recognition of beginning of year deferred inflows of resources as pension expense (67,389) (81,471) Pension Expense $ 31,890 $ 38,864
Deferred Outflows of Resources and Deferred Inflows of Resources Deferred Outflows of Resources
Contributions subsequent to Measurement Date $ 26,359 $ 27,958 Changes of assumptions or other outputs — 327
Difference between expected and actual experience in the Total Pension Liability 45,939 51,362 Deferred Outflows of Resources $ 72,298 $ 79,646
Deferred Inflows of Resources
Net difference between projected and actual earnings on pension plan investments $ 7,015 $ 8,417 Changes of assumptions 2,007 1,754
Difference between expected and actual experience in the Total Pension Liability 2,512 1,665 Deferred Inflows of Resources $ 11,534 $ 11,836
The and reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total Pension liability during the fiscal year ending . Deferred outflows of resources and deferred inflows of resources related to pension will be recognized as follows:
The $26.4 million and $28.0 million reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total Pension liability during the fiscal year ending June 30, 2025. Deferred outflows of resources and deferred inflows of resources related to pension will be recognized as follows:
2025 $ 6,643 $ 2,621
2026 $ (7,992) $ (12,769)
2027 47,757 58,993
2028 (12,003) (8,992)
Totals $ 34,405 $ 39,853
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
142 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS 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, 2022 (the beginning of the measurement period ending June 30, 2023) and is 4.06 years for the Employees System and 4.49 years for the Fire & Police System.
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, 2023), the net pension liability for the Plan is $693,565. For the measurement period ended June 30, 2024 (the measurement date), the net pension liability for the Plan is $733,631 and the Successor Agency incurred pension expense of $105,262 for the Plan.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
143 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS As of June 30, 2024, 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 $ 60 $ —
Difference between expected and actual experience 37 6 Changes in assumptions 44 —
Net difference between projected and actual earnings on pension plan investments 119 — Changes in employer's proportions 11 2
Difference between the employer's contributions and the employer's proportionate share of contributions — 44
Total $ 271 $ 52
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
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
144 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS 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 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
145 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Accrued Employee Leave balances as of June 30, 2024, are as follows (in thousands):
Department/Activity
Total Accrued
Vacation,
Sick Leave, and HRA
Current
Portion
Governmental Activities:
General Fund $ 69,240 $ 11,765
Grants Special Revenue Fund 7,278 206
Special Gas Tax 914 108
Measure C 1,219 222
Measure P 718 84
Community Services 354 38
Special Assessment 351 63
General Services 4,347 473
Risk Management 299 27
Total Governmental Activities $ 84,722 $ 12,986
Business-Type Activities:
Water System $ 2,016 $ 458
Sewer System 2,051 389
Solid Waste Management 1,465 407
Transit 3,780 658
Airports 1,464 470
Community Sanitation 571 64
Billing and Collection 1,557 291
Total Business-Type Activities $ 12,904 $ 2,737
Fiduciary Funds:
Private-Purpose Trust Fund $ 50 $ 17
Total $ 97,676 $ 15,740
Accrued employee leave balances related to governmental activities are recorded in the Government- Wide Financial Statements under Long-Term Liabilities.
D. Termination Benefits
During fiscal year 2024, 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
146 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS 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 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
147 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS 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 City does not accumulate assets in a dedicated trust, or equivalent arrangement, for the purpose of funding its retirement healthcare obligation. Therefore, the actuarial value of plan assets are zero. 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, 2024
148 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Employees Covered
As of June 30, 2024 , the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefit payments 401 Inactive employees entitled to but not yet receiving benefit payments — Active employees 3,873
Total participants covered by OPEB Plan 4,274
Net OPEB Liability
The City's net OPEB liability of $109.4 million was measured as of June 30, 2023 , and was determined by an actuarial valuation as of June 30, 2022 to determine the June 30, 2024 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, 2024
Measurement Date June 30, 2023
Valuation Date June 30, 2023
Discount Rate 3.93%
Healthcare Cost Trend Rates:
Current Year Trend 5.04% / 4.82%
Second Year Trend 7.50% / 4.54%
Decrement N/A
Ultimate Trend 4.54%
Year Ultimate Trend is Reached 2090
Salary Increases 3.50%
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, 2024
149 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The June 30, 2023 valuation was prepared using a discount rate of 3.93%. If the discount rate were 1% higher than what was used in this valuation, the Net OPEB Liability would decrease to $ 97.7 million or by
10.7%. If the discount rate were 1% lower than was used in this valuation, the Net OPEB Liability would increase to $123.4 million, or by 12.7%.
1% Decrease Current
Discount Rate 1% Increase
2.93% 3.93% 4.93%
Net OPEB Liability
(in thousands) $ 123,402 $ 109,448 $ 97,734
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The June 30, 2023 valuation was prepared using an initial trend rate of 5.04% / 4.82%. If the trend rate were 1% higher than what was used in this valuation, the Net OPEB Liability would increase to $128.1 million or by 17.01%. If the trend rate were 1% lower than was used in this valuation, the Net OPEB Liability would decrease to $94.5 million or by 13.7%.
1% Decrease
Current
Healthcare Cost
Trend Rates
1% Increase
-1% 5.04% / 4.82% 1%
Net OPEB Liability
(in thousands) $ 94,462 $ 109,448 $ 128,071
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)
OPEB Liability as of June 30, 2022 $ 110,982
Changes for the Year:
Service Cost 8,243
Interest 4,179
Assumption Changes (13,448)
Difference between Actual and Expected
Experience 1,645
Benefit Payments (2,153)
Net Changes (1,533)
OPEB Liability as of June 30, 2023 $ 109,448
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
150 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources For the year ended June 30, 2024 , the City recognized an OPEB expense of $5.0 million. At June 30, 2024, 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 $ 2,937 $ — Changes of Assumptions 21,929 (47,397)
Difference Between Actual and Expected Experience 1,581 (16,129) Total $ 26,447 $ (63,526)
The $2.9 million reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2025. 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
2025 $ (7,428)
2026 (7,428)
2027 (5,968)
2028 (5,883)
2029 (6,232)
Thereafter (7,076)
Total: $ (40,016)
G. Healthcare Plan Claims Liability
The recorded liability for the Employees Healthcare Plan at June 30, 2024 for employee health benefit claim payments for direct provider care is $6.4 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
2023 $ 7,400 $ 66,666 $ 66,166 $ 7,900
2024 7,900 69,512 71,012 6,400
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024
151 NOTE 11 - EMPLOYEE BENEFIT PROGRAMS Note 12. 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 $ 2.1 million at June 30, 2024, as compared to $2.3 million at June 30, 2023.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 152 NOTE 12 - NO-COMMITMENT DEBT Note 13. 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, 2024 to be $9.2 million. A liability in this amount has been recorded in the Solid Waste Management Fund. It is anticipated that approximately $0.9 million in monitoring costs and landfill site closure costs will be paid in fiscal year 2025. The Fresno sanitary landfill has not received solid waste since 1987. It was redesigned as part of a 350-acre “green” facility to integrate the Fresno sanitary 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 $8.2 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 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 153 NOTE 13 - COMMITMENTS AND CONTINGENCIES USBR. The present value of the City’s debt obligation to the Bureau has been fully capitalized in the 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 $0.6 million on June 30, 2024.
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, 2024.
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 2024 ACFR in the amount of $278,000. 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 $90,000 in fiscal year 2024.
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, 2024 154 NOTE 13 - 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 CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 155 NOTE 13 - COMMITMENTS AND CONTINGENCIES 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 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, 2024 156 NOTE 13 - COMMITMENTS AND CONTINGENCIES G. Construction and Other Significant Commitments
On June 30, 2024, the City had commitments for the following major construction projects (in thousands):
Project Title
Remaining
Construction
Committed
Governmental:
Downtown Redevelopment Grant Water & Sewer Improve $ 18,785 MSC0692 Generator Project Bidfile # 1230074 8,277
Welcome Home 96-Unit Modular Housing Construction 7,542 Paving Bid Package Various Locations 7,359
12302905 No 13 Park at MLK Magnet Core 6,833
Total Governmental - Major Projects 48,795
Other Governmental Projects 107,522
Total Governmental Projects $ 156,317
Proprietary:
Q&D 3rd Amendment Phase 2 - FAT Terminal Expansion $ 57,959 North Ave Sewer Trunk Main Realignment 5,174
Water Main Replacement in Calwa Townsite, Phase II 4,521 Sewer Rehab in Shields, Dakota, Fruit, Palm 4,039
Fruit Ave Emergency Repair 2,579
Const Van Ness Grid Water Main Prev # 12401958 2,224
Concrete Liner Installation at NESWTF Ponds 1 & 2 2,082 Construction Services - Parking Garage 1,419
Polyethylene Water Service Replacements 1,204
Cleaning and Rehab of digesters #2 & #9 1,136
Fresno Area Express Facility Improvement Project 1,069 RQ Contract to Rehab Public Water Supply Wells EQ 1,024 RQ Contract to Rehab Public Water Supply Wells-SQ 948
Eaton Remote Auto Racking 901
Total Proprietary- Major Projects $ 87,091
Other Proprietary Projects $ 10,359
Total Major Construction Projects $ 253,766
H. 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, CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 157 NOTE 13 - COMMITMENTS AND CONTINGENCIES field investigations and home inspections, consultations with national corrosion experts, multiple community meetings and presentations, and public distribution of information and education materials.
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 $5.1 million through June 30, 2024 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, 2024 158 NOTE 13 - COMMITMENTS AND CONTINGENCIES Note 14. 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, 2024 159 NOTE 14 - SECURITIES LENDING Note 15. 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.
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 and expended by the City as of June 30, 2024.
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, 2024, Transit has received the full award amount and has completed all spending and reporting requirements associated with this funding.
American Rescue Plan Act (ARPA) funding the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) – In March 2021, the City was awarded $170.8 million of SLFRF funding and has allocated all funding to various City led and Community Based Organization led projects. As of June 30, 2024, the City has expended $94.5 million in SLFRF funding and continues to implement identified projects throughout the City of Fresno.
Airport American Rescue Plan Act (ARPA) funding the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) – In March 2021, the City’s Airports Department was awarded three grants totaling $9.7 million of SLFRF funding. The funding is for concession relief and operating expenses. As of June 30, 2024, the City has expended all funding totaling $9,715,088 in SLFRF funding.
Emergency Rental Assistance Program (ERAP) – The City was awarded $69.3 million in ERAP funding:
$35.6 million from the Federal government and $33.7 million from the State. As of June 30, 2023, the City received all funding allocations. All allocations were expended in accordance with State and Federal regulations as of June 30, 2024. The program is designed to assist qualified residents in retaining housing and utilities by reimbursing landlords and utility providers for past due billings.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 160 NOTE 15 - OTHER INFORMATION Note 16. Deficit Fund Equity
The Risk Management Internal Service Fund had a deficit net position as of June 30, 2024.
The deficit net position in the Risk Management Fund at June 30, 2024 was $263.1 million, an increase of $36.0 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 $260.3 million. This liability grew by $30.1 million between fiscal years 2022 and 2023.
City management continues to carefully monitor this fund and evaluate strategies for reducing and eliminating this deficit net position balance.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 161 NOTE 16 - DEFICIT FUND EQUITY Note 17. 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.
A. Fire Station No. 12 Project
The Council approved the purchase of property at 3315 W. Ashlan Avenue to construct a new Fire Station No. 12. The new station will be located at the intersection of Ashlan Avenue and Valentine Avenue [in the northwestern part of the City] and will replace the existing Station No. 12, currently located at Acacia Avenue and Marks Avenue. The new station will be significantly larger than the existing one.
The structure will consist of an approximately 14,000-square-foot, single-story wood-frame building, containing four apparatus bays for fire apparatus and equipment storage, living quarters for 11 personnel, and an office area.
Construction is expected to begin in 2025, with a total estimated project cost of $18.0 million, which is expected to be financed through the issuance of lease revenue bonds. Annual debt service will be supported with 51% of proceeds from the General Fund and 49% from impact fees.
B. 911 Emergency Call Center Project
The Fresno Police Department expects to begin work on a new 911 Emergency Call Center, which will provide a state-of-the-art, environmentally safe, and technologically advanced building with sufficient space to accommodate appropriate staffing levels. The proposed Emergency Call Center will be constructed on a 1.25-acre project site located in the eastern portion of the City’s Municipal Service Center. The facility will consist of a single-story building with a large call center space, office space for managers and supervisors, a conference room, a training room, break rooms, restrooms, an exercise and fitness room, a server room, an electrical room, and an outdoor courtyard.
The Emergency Call Center will operate 24 hours a day, every day of the year, and will be managed and maintained by the Fresno Police Department. Its operation will involve transferring certain existing operations from the police department. The City will equip the Emergency Call Center using other City funding sources.
The anticipated total cost of the project is approximately $16.9 million, which is expected to be financed through the issuance of lease revenue bonds. Annual debt service will be supported with 51% of proceeds from the General Fund and 49% from impact fees.
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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, 2024
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final BudgetOriginal Final
Budgetary Fund Balance, July 1 $ 83,476 $ 90,381 $ 115,975 $ 25,594 Resources (inflows):
Taxes:
Property Taxes 174,107 174,107 180,515 6,408
Sales Taxes 157,105 157,105 152,033 (5,072)
Other Taxes 42,942 42,942 43,392 450
Franchise Taxes 15,949 15,949 21,443 5,494
Licenses and Permits 14,132 14,132 9,567 (4,565)
Intergovernmental:
State Motor Vehicle In-Lieu — — 671 671
Other State Revenue 753 753 2,086 1,333
Other Intergovernmental 496 496 651 155
Charges for Services:
Charges for Services 37,468 37,661 43,416 5,755
Fines and Violations 2,943 2,943 3,125 182
Use of Money and Property 1,823 1,823 4,817 2,994
Miscellaneous 25,282 28,205 27,274 (931)
Other Financing Sources:
Transfers from Other Funds 8,075 8,075 8,003 (72)
Total Available for Appropriations 564,551 574,572 612,968 38,396 Charges to Appropriations (outflows):
General Government:
Mayor and City Council — — 18 18
Other General Government 30,984 39,694 59,824 (20,129) Public Protection:
Police Department 249,327 249,856 242,801 (7,055)
Fire Department 81,681 85,166 85,233 67
Public Ways & Facilities 35,831 38,576 27,766 (10,810) Culture and Recreation 25,987 27,502 21,727 (5,775) Community Development 52,628 56,447 38,312 (18,135) Capital Outlay 8,453 11,055 5,129 (5,926)
Other Financing Uses:
Transfers to Other Funds 26,479 26,479 26,818 339
Total Charges to Appropriations 511,370 534,775 507,628 (67,406) Less Estimated Attrition Savings — — — —
Excess Resources Over Appropriations $ 53,181 $ 39,797 $ 105,340 $ 65,543 See accompanying notes to the required supplementary information. 171
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - General Fund
Fiscal Year Ended June 30, 2024 (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. $ 612,968
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. (6,515) Interfund reimbursements are not revenues and are expenditures for financial reporting. (26,343) Carryovers are inflows of budgetary resources but are not revenues for financial reporting purposes. (115,975)
Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes. (8,002)
Nonreciprocal interfund activity is not revenue and is a transfer for financial reporting. 2,905 Total revenues as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 459,038
Uses/Outflows of Resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the Budget to Actual Comparison Schedule. $ 507,628 Differences - Budget to GAAP:
The City budgets for expenditures on the cash basis of accounting, rather than on the modified accrual basis of accounting. (55,703)
Interfund reimbursements are a reduction of expenditures for financial reporting. 26,343 Pension Obligation bond debt payments and City Hall rent are recognized as transfers out to other funds. (12,893)
Transfers to other funds are outflows of budgetary resources, but are not expenditures for financial reporting purposes. (13,925) Return on capital asset as offset for Advances to Other Funds Capital financing activity additions are expenditures for financial reporting purposes. 5,617 Total charges to appropriations as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 457,067 See accompanying notes to the required supplementary information. 172
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, 2024
(in thousands)
Budgeted Amounts Actual
Amounts
Budgetary
Basis
Over
(Under)
Final BudgetOriginal Final
Budgetary Fund Balance, July 1 $ 90,695 $ 90,915 $ 63,560 $ (27,355) Resources (inflows):
Intergovernmental:
Federal Grants 94,063 95,059 45,234 (49,825)
State Grants 149,550 292,354 134,915 (157,439)
Local Support 103 103 490 387
Charges for Services 1,714 1,714 1,714 —
Use of Money and Property 4,152 4,721 2,539 (2,182) Miscellaneous 843 843 1,111 268
Other Financing Sources:
Transfers from Other Funds 52 52 3,633 3,581
Total Available for Appropriations 341,172 485,761 253,196 (232,565) Charges to Appropriations (outflows):
General Government 18,760 25,525 11,385 (14,140)
Public Protection 20,696 38,098 20,195 (17,903)
Public Ways & Facilities 41,322 51,439 28,253 (23,186) Culture and Recreation 7,009 9,518 1,320 (8,198)
Community Development 194,656 233,774 61,782 (171,992) Capital Outlay 96,165 223,529 12,596 (210,933)
Other Financing Uses:
Transfers to Other Funds 2 2 1,389 1,387
Total Charges to Appropriations 378,610 581,885 136,920 (444,965) Excess (Deficit) Resources Over Appropriations $ (37,438) $ (96,124) $ 116,276 $ 212,400 See accompanying notes to the required supplementary information. 173
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, 2024 (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. $ 253,196
Differences - Budget to GAAP:
Grant reimbursements are budgeted on the cash basis of accounting rather than on the modified accrual basis of accounting. (25,136)
Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes. (3,633)
Interfund reimbursements are not revenues and are expenditures for financial reporting. (1,714) Carryovers are inflows of budgetary resources but are not revenues for financial reporting purposes. (63,560)
The receipt of loan payments are inflows of budgetary resources but are not revenues for financial reporting purposes. (650) Total revenues as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 158,503
Uses/Outflows of Resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the Budget to Actual Comparison Schedule. $ 136,920 Differences - budget to GAAP:
The City budgets for expenditures on the cash basis of accounting rather than on the modified accrual basis of accounting. 24,524 Interfund reimbursements are a reduction of expenditures for financial reporting. (1,714) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes. (1,389) Total charges to appropriations as reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds. $ 158,341 See accompanying notes to the required supplementary information.
174
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) 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, 2024 175 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, and Fresno Enhanced Infrastructure Financing District. 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 accounting principles generally accepted in the United States (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, 2024 176 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 $8.0 million in its fiscal year 2024 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 $0.1 million lower than budgeted levels in fiscal year 2024.
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, 2024 177 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
2024 10.56% 10.38%
2023 9.74% 9.52%
2022 (7.12)% (7.28)%
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%
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 ( 2015-2024). 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, 2024 178
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios
PENSION TRUST FUNDS
FIRE AND POLICE RETIREMENT SYSTEMS
(Last Ten Fiscal Years)
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios Change in Net Pension Liability (in thousands)
For the Fiscal Year Ended: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Reporting Date: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Service Cost $45,611 $41,190 $38,322 $37,563 $37,619
Interest 125,971 117,305 114,608 109,739 105,570
Differences between expected &
actual experience 48,898 51,061 22,225 (5,449) 260
Changes of assumptions — — 624 — (14,745)
Benefit payments, including refunds (90,219) (80,937) (75,178) (70,963) (67,202) Net Change in Total Pension
Liability 130,261 128,619 100,601 70,890 61,502
Total Pension Liability - Beginning 1,865,741 1,737,122 1,636,521 1,565,631 1,504,129 Total Pension Liability - Ending (a)* $1,996,002 $1,865,741 $1,737,122 $1,636,521 $1,565,630 Plan Fiduciary Net Position
Contributions - employer $30,635 $27,068 $27,555 $26,315 $22,324 Contributions - employee 13,108 12,054 10,973 10,256 10,012 Net Investment Income 206,468 198,976 (160,517) 491,744 24,206 Benefit Payments including Refunds,
PRSB (90,219) (80,937) (75,178) (70,963) (67,202)
Administrative & Professional
Expense (2,458) (2,401) (2,126) (2,282) (1,839)
Net Change in Plan Fiduciary Net
Position 157,534 154,760 (199,293) 455,070 (12,500)
Plan Fiduciary Net Position - Beginning 2,045,837 1,891,077 2,090,370 1,635,300 1,647,800 Plan Fiduciary Net Position - Ending (b) $2,203,371 $2,045,837 $1,891,077 $2,090,370 $1,635,300 Plan Net Pension Liability (Asset) -
Ending (a) - (b) $(207,369) $(180,096) $(153,955) $(453,849) $(69,669) Plan Fiduciary Net Position as a
percentage of Total Pension Liability 110.39% 109.65% 108.86% 127.73% 104.45% Covered Payroll (1) $145,669 $134,252 $122,634 $115,341 $113,843 Plan Net Pension Liability as a
percentage of covered payroll (142.36)% (134.15)% (125.54)% (393.48)% (61.20)% * 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 179
PENSION TRUST FUNDS
FIRE AND POLICE RETIREMENT SYSTEMS
(Last 10 Fiscal Years)
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios (cont) Change in Net Pension Liability (in thousands)
For the Fiscal Year Ended: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Reporting Date: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement Date: 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Total Pension Liability
Service Cost $33,211 $30,298 $28,838 $26,569 $26,518
Interest 100,609 95,274 90,185 88,363 86,771
Differences between expected &
actual experience (7,067) 6,722 10,896 (42,952) (36,528) Changes of assumptions 55,856 2,891 — 49,427 —
Benefit payments, including refunds (65,962) (63,071) (59,273) (56,581) (54,612) Net Change in Total Pension
Liability 116,647 72,114 70,646 64,826 22,149
Total Pension Liability - Beginning 1,387,482 1,315,368 1,244,722 1,179,896 1,157,747 Total Pension Liability - Ending (a)* $1,504,129 $1,387,482 $1,315,368 $1,244,722 $1,179,896 Plan Fiduciary Net Position
Contributions - employer $20,604 $19,697 $18,543 $18,738 $18,967 Contributions - employee 9,597 8,964 8,169 7,748 7,385
Net Investment Income 82,872 129,163 192,315 6,063 39,164 Benefit Payments including Refunds,
PRSB (65,962) (63,071) (59,273) (56,581) (54,612)
Administrative & Professional
Expense (1,897) (1,710) (1,500) (1,397) (1,108)
Net Change in Plan Fiduciary Net
Position 45,214 93,043 158,254 (25,429) 9,796
Plan Fiduciary Net Position - Beginning 1,602,586 1,509,543 1,351,289 1,376,718 1,366,922 Plan Fiduciary Net Position - Ending (b) $1,647,800 $1,602,586 $1,509,543 $1,351,289 $1,376,718 Plan Net Pension Liability (Asset) -
Ending (a) - (b) $(143,671) $(215,104) $(194,175) $(106,567) $(196,822) Plan Fiduciary Net Position as a
percentage of Total Pension Liability 109.55% 115.50% 114.76% 108.56% 116.68% Covered Payroll (1) $109,803 $103,934 $97,369 $94,266 $91,075 Plan Net Pension Liability as a
percentage of covered payroll (130.84)% (206.96)% (199.42)% (113.05)% (216.11)% CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 180
PENSION TRUST FUNDS
EMPLOYEES RETIREMENT SYSTEMS
(Last Ten Fiscal Years)
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios Change in Net Pension Liability (in thousands)
For the Fiscal Year Ended: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Reporting Date: 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total Pension Liability
Service Cost $ 44,235 $ 37,299 $ 32,382 $ 30,993 $ 28,762 Interest 105,949 99,304 96,311 93,358 89,222
Differences between expected &
actual experience 40,919 35,440 40,833 (12,980) 5,748 Changes of assumptions — — (4,262) — —
Benefit payments, including refunds (83,202) (77,873) (71,884) (69,246) (64,519) Net Change in Total Pension
Liability 107,901 94,170 93,380 42,125 59,212
Total Pension Liability - Beginning 1,566,984 1,472,814 1,379,433 1,337,308 1,278,096 Total Pension Liability - Ending (a)* $ 1,674,885 $ 1,566,984 $ 1,472,814 $ 1,379,433 $ 1,337,308 Plan Fiduciary Net Position
Contributions - employer $ 28,621 $ 22,236 $ 22,017 $ 20,144 $ 16,554 Contributions - employee 18,833 14,894 15,493 13,750 11,028 Net Investment Income 169,858 164,014 (132,625) 407,811 20,109 Benefit Payments including Refunds,
PRSB (83,202) (77,873) (71,884) (69,246) (64,519)
Administrative & Professional
Expense (2,318) (2,145) (2,050) (2,058) (1,749)
Net Change in Plan Fiduciary Net
Position 131,792 121,127 (169,050) 370,401 (18,578) Plan Fiduciary Net Position - Beginning 1,683,313 1,562,187 1,731,237 1,360,838 1,379,415 Plan Fiduciary Net Position - Ending (b) $ 1,815,105 $ 1,683,314 $ 1,562,187 $ 1,731,239 $ 1,360,837 Plan Net Pension Liability (Asset) -
Ending (a) - (b) $ (140,220) $ (116,330) $ (89,374) $ (351,806) $ (23,529) Plan Fiduciary Net Position as a
percentage of Total Pension Liability 108.37 % 107.42 % 106.07 % 125.50 % 101.76 % Covered Payroll (1) $ 213,088 $ 186,219 $ 164,642 $ 154,031 $ 149,403 Plan Net Pension Liability as a
percentage of covered payroll (65.80) % (62.47) % (54.28) % (228.40) % (15.75) % * 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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 181
PENSION TRUST FUNDS
EMPLOYEES RETIREMENT SYSTEMS
(Last Ten Fiscal Years)
Schedule of Changes in the Net Pension Liability (Asset) and Related Ratios (cont) Change in Net Pension Liability (in thousands)
For the Fiscal Year Ended: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Reporting Date: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Measurement Date: 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Total Pension Liability
Service Cost $ 23,509 $ 21,275 $ 18,885 $ 18,687 $ 18,476 Interest 86,110 82,833 79,266 79,763 78,212
Differences between expected &
actual experience (446) (4,164) 5,263 (24,394) (24,691) Changes of assumptions 35,773 2,939 — 9,612 —
Benefit payments, including refunds (62,144) (57,666) (55,550) (52,529) (50,546) Net Change in Total Pension
Liability 82,802 45,217 47,864 31,139 21,451
Total Pension Liability - Beginning 1,195,294 1,150,077 1,102,213 1,071,074 1,049,623 Total Pension Liability - Ending (a)* $ 1,278,096 $ 1,195,294 $ 1,150,077 $ 1,102,213 $ 1,071,074 Plan Fiduciary Net Position
Contributions - employer $ 14,627 $ 14,609 $ 15,205 $ 13,060 $ 12,327 Contributions - employee 10,515 10,330 10,181 9,098 8,750 Net Investment Income 69,389 108,915 162,374 5,089 33,310 Benefit Payments including Refunds,
PRSB (62,144) (57,666) (55,550) (52,529) (50,546)
Administrative & Professional
Expense (1,663) (1,619) (1,387) (1,346) (1,071)
Net Change in Plan Fiduciary Net
Position 30,724 74,569 130,823 (26,628) 2,770
Plan Fiduciary Net Position - Beginning 1,348,691 1,274,122 1,143,299 1,169,927 1,167,157 Plan Fiduciary Net Position - Ending (b) $ 1,379,415 $ 1,348,691 $ 1,274,122 $ 1,143,299 $ 1,169,927 Plan Net Pension Liability (Asset) -
Ending (a) - (b) $ (101,319) $ (153,397) $ (124,045) $ (41,086) $ (98,852) Plan Fiduciary Net Position as a
percentage of Total Pension Liability 107.93 % 112.83 % 110.79 % 103.73 % 109.23 % Covered Payroll (1) $ 138,396 $ 128,461 $ 119,007 $ 108,541 $ 105,820 Plan Net Pension Liability as a
percentage of covered payroll (73.21) % (119.41) % (104.23) % (37.85) % (93.42) % CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 182
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
2024 $ 30,635 $ 30,635 — $ 145,669 21.03%
2023 $ 27,068 $ 27,068 — $ 134,252 20.16%
2022 $ 27,556 $ 27,556 — $ 122,634 22.47%
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%
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
2024 $ 28,621 $ 28,621 — $ 213,088 13.43%
2023 $ 22,236 $ 22,236 — $ 186,219 11.94%
2022 $ 22,017 $ 22,017 — $ 164,642 13.37%
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%
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, 2021, will impact the contribution rate for the fiscal year ended June 30, 2023.
CITY OF FRESNO | ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 183
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years*
(in thousands)
2019 2020 2021 2022 2023 2024
OPEB Liability Beginning of Year $ 92,820 $ 113,700 $ 148,672 $ 152,605 $ 99,761 $ 110,982 Changes for the Year: — — — — —
Service Cost 5,777 10,885 10,052 6,603 6,908 8,243 Interest 3,688 3,012 3,045 3,221 3,946 4,179
Difference between Actual and
Expected Experience — (7,800) — (19,028) — 1,645
Assumption Changes 13,406 30,935 (6,622) (40,728) 2,444 (13,448) Benefit Payments (1,990,681) (2,060,561) (2,542) (2,912) (2,078) (2,153) Net Changes 20,881 34,972 3,933 (52,844) 11,221 (1,533) Net OPEB Liability End of Year $ 113,700 $ 148,672 $ 152,605 $ 99,761 $ 110,982 $ 109,448 Covered-Employee Payroll as of
December 311 $ 236,134 $ 250,860 $ 257,132 $ 294,493 $ 304,801 $ 359,844 Net OPEB Liability as a percentage of
covered-employee payroll 48.15 % 59.26 % 59.35 % 33.88 % 36.41 % 30.42 % 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, 2024 184
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CITY OF FRESNO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
(in thousands)
Special Revenue
High
Speed
Rail
Fresno
Revitalization
Corporation
Special
Gas Tax Measure C Measure P
Community
Services
UGM
Impact Fees
Assets
Cash and Investments $ 3,597 $ — $ 19,455 $ 26,328 $ 52,644 $ 10,489 $ 74,946 Receivables, Net 31 — 188 238 449 966 672
Grants Receivable 15 — — 5,942 — 327 —
Intergovernmental Receivables — — 3,718 1,391 7,954 1 — Due From Other Funds — — 172 — 2,400 1,951 1,653 Property Held for Resale — — — — — — —
Restricted Cash — 161 — — — — —
Loans, Notes, Leases, Other
Receivables, Net — — — — — — —
Total Assets $ 3,643 $ 161 $ 23,533 $ 33,899 $ 63,447 $ 13,734 $ 77,271 Liabilities
Accrued Liabilities $ 94 $ 107 $ 1,678 $ 3,229 $ 2,217 $ 4,842 $ 2,578 Unearned Revenue — — — — — 809 —
Due to Other Funds 10 — 349 157 656 27 1
Advances to Other Funds — — — — — — 947
Property Held for Resale — — — — — — —
Deposits From Others — — — — — 31 —
Total Liabilities 104 107 2,027 3,386 2,873 5,709 3,526 Deferred Inflows of Resources
Unavailable Revenue-Other — — — 4,799 — 710 —
Total Deferred Inflows of Resources — — — 4,799 — 710 — Fund Balances
Restricted 3,539 54 21,506 25,714 60,574 7,315 73,745 Assigned — — — — — — —
Total Fund Balances 3,539 54 21,506 25,714 60,574 7,315 73,745 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 3,643 $ 161 $ 23,533 $ 33,899 $ 63,447 $ 13,734 $ 77,271 187
Debt Service
Capital
Projects
Fresno
E.I.F.D.
Low and
Moderate
Income
Housing
Special
Assessments City Debt
Financing
Authorities
and
Corporations
City
Combined
Total
Nonmajor
Governmental
Funds
Assets
$ 338 $ — $ 15,511 $ 41 $ 2,181 $ 31,372 $ 236,902 Cash and Investments 1 1 133 13 6 288 2,986 Receivables, Net
— — — — — — 6,284 Grants Receivable
— — 98 — — — 13,162 Intergovernmental Receivables — — — — — 1,167 7,343 Due From Other Funds
— 3,264 — — — — 3,264 Property Held for Resale
— 7,975 — 4 183 — 8,323 Restricted Cash
— 23,818 — — — — 23,818
Loans, Notes, Leases, Other
Receivables, Net
$ 339 $ 35,058 $ 15,742 $ 58 $ 2,370 $ 32,827 $ 302,082 Total Assets Liabilities
$ — $ — $ 662 $ — $ — $ 1,229 $ 16,636 Accrued Liabilities — — — — — — 809 Unearned Revenue
2 — 71 — — 1,134 2,407 Due to Other Funds
— — — — — — 947 Advances From Other Funds
— — — — — — 31 Deposits From Others
2 — 733 — — 2,363 20,830 Total Liabilities
Deferred Inflows of Resources
— — — — — — 5,509 Unavailable Revenue-Other
— — — — — — 5,509
Total Deferred Inflows of
Resources
Fund Balances
337 35,058 15,009 58 2,370 — 245,279 Restricted
— — — — — 30,464 30,464 Assigned
337 35,058 15,009 58 2,370 30,464 275,743 Total Fund Balances $ 339 $ 35,058 $ 15,742 $ 58 $ 2,370 $ 32,827 $ 302,082 Total Liabilities, Deferred Inflows of
Resources and Fund Balances
188
CITY OF FRESNO, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2024
(in thousands)
Special Revenue
High Speed
Rail
Fresno
Revitalization
Corporation
Special
Gas Tax Measure C Measure P
Community
Services
UGM
Impact
Fees
Revenues
Taxes $ — $ — $ — $ 17,247 $ 45,095 $ 2,260 $ —
Intergovernmental 1,118 — 28,478 56 81 3,157 —
Charges for Services 5,980 481 47 — — 9,005 17,011 Fines — — — — — — —
Use of Money and Property (15) — 1,088 744 1,408 548 4,402 Miscellaneous — 2 1 6 1 — 1
Total Revenues 7,083 483 29,614 18,053 46,585 14,970 21,414 Expenditures
Current:
General Government — — — — 48 624 —
Public Protection — — — — — 1,970 706
Public Ways and Facilities 1,031 — 21,352 14,989 1,816 3,920 2,258 Culture and Recreation — — — — 33,078 1,096 6
Community Development — 1,042 — 13 65 1,609 —
Capital Outlay — — 4,682 10,922 5,896 3,015 7,081 Debt Service:
Interest — — — — — — 42
Total Expenditures 1,031 1,042 26,034 25,924 40,903 12,234 10,093 Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,052 (559) 3,580 (7,871) 5,682 2,736 11,321 Other Financing Sources (Uses)
Transfers In 35 — 142 56 8 354 448
Transfers Out — — (877) (846) (736) (728) (3,435) Total Other Financing
Sources (Uses) 35 — (735) (790) (728) (374) (2,987) Net Change in Fund Balances 6,087 (559) 2,845 (8,661) 4,954 2,362 8,334 Fund Balances (Deficit) - Beginning (2,548) 613 18,661 34,375 55,620 4,953 65,411 Fund Balances (Deficit) - Ending $ 3,539 $ 54 $ 21,506 $ 25,714 $ 60,574 $ 7,315 $ 73,745 189
Debt Service
Capital
Projects
Fresno
E.I.F.D.
Low and
Moderate
Income
Housing
Special
Assessments City Debt
Financing
Authorities
and
Corporations
City
Combined
Total
Nonmajor
Governmental
Funds
Revenues
$ 269 $ — $ — $ — $ — $ — $ 64,871 Taxes
— 662 — — — — 33,552 Intergovernmental
— 1 10,430 — — 1,137 44,092 Charges for Services
— — — — — — — Fines
(1) 16 928 25 43 2,179 11,365 Use of Money and Property — — 6 — — 49 66 Miscellaneous
268 679 11,364 25 43 3,365 153,946 Total Revenues Expenditures
Current:
— — — 3 9 1 685 General Government
— — — — 1 2,062 4,739 Public Protection
2 — 10,638 — — 280 56,286 Public Ways and Facilities — — — — 1 186 34,367 Culture and Recreation
— 639 — — — — 3,368 Community Development
— — — — — 1,361 32,957 Capital Outlay
Debt Service:
— — — 11,065 7,980 — 19,045 Principal
— — — 5,126 4,590 — 9,758 Interest
2 639 10,638 16,194 12,581 3,890 161,205 Total Expenditures 266 40 726 (16,169) (12,538) (525) (7,259)
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
— 400 1 16,186 12,458 522 30,610 Transfers In
— — (506) — — (594) (7,722) Transfers Out
— 400 (505) 16,186 12,458 (72) 22,888
Total Other Financing
Sources (Uses)
266 440 221 17 (80) (597) 15,629 Net Change in Fund Balances 71 34,618 14,788 41 2,450 31,061 260,114 Fund Balances (Deficit) - Beginning $ 337 $ 35,058 $ 15,009 $ 58 $ 2,370 $ 30,464 $ 275,743 Fund Balances (Deficit) - Ending 190
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, 2024
(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 $ (2,781) $ (2,781) $ (2,599) $ 182 $ 2,599 $ — Resources (inflows):
Intergovernmental 2,481 2,481 1,142 (1,339) (24) 1,118 Charges for Services 880 880 5,980 5,100 — 5,980
Use of Money and Property (45) (45) 74 119 (89) (15) Other Financing Sources:
Transfers to Other Funds 46 46 263 217 (228) 35
Total Available
for Appropriations 581 581 4,860 4,279 2,258 7,118 Charges to Appropriations
(outflows):
Public Ways and Facilities 1,709 1,728 966 (762) 65 1,031 Other Financing Uses:
Transfers to Other Funds — — 228 228 (228) —
Total Charges
to Appropriations 1,709 1,728 1,194 (534) (163) 1,031 Excess (Deficit) Resources
Over (Under) Appropriations $ (1,128) $ (1,147) $ 3,666 $ 4,813 $ 2,421 $ 6,087 191
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, 2024
(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 $ 9,137 $ 9,581 $ 7,868 $ (1,713) $ (7,868) $ — Resources (inflows):
Taxes 26,709 26,709 29,214 2,505 (29,214) —
Intergovernmental — — — — 28,478 28,478
Charges for Services — — — — 47 47
Use of Money and Property 158 157 573 416 515 1,088 Miscellaneous 142 141 650 509 (649) 1
Other Financing Sources:
Transfers From Other Funds — — 143 143 (1) 142
Total Available
for Appropriations 36,146 36,588 38,448 1,860 (8,692) 29,756 Charges to Appropriations
(outflows):
Public Ways and Facilities 24,105 24,998 19,684 (5,314) 1,668 21,352 Capital Outlay 11,170 16,874 1,099 (15,775) 3,583 4,682 Other Financing Uses:
Transfers to Other Funds — — 749 749 128 877
Total Charges
to Appropriations 35,275 41,872 21,532 (20,340) 5,379 26,911 Excess (Deficit) Resources
Over (Under) Appropriations $ 871 $ (5,284) $ 16,916 $ 22,200 $ (14,071) $ 2,845 192
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, 2024
(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 $ 7,396 $ 7,396 $ 9,186 $ 1,790 $ (9,186) $ — Resources (inflows):
Taxes 36,297 35,735 27,664 (8,071) (10,417) 17,247 Use of Money and Property 214 214 744 530 — 744
Miscellaneous 160 160 272 112 (266) 6
Other Financing Sources:
Intergovernmental 1,250 1,250 78 (1,172) (22) 56
Transfers from Other Funds 14 14 78 64 (22) 56
Sale of Capital Assets — — — — —
Total Available
For Appropriations 45,331 44,769 38,022 (6,747) (19,913) 18,109 Charges to Appropriations
(outflows):
Public Ways and Facilities 23,808 30,820 13,932 (16,888) 1,057 14,989 Community Development — 36 — (36) 13 13
Capital Outlay 70,937 77,822 — (77,822) 10,922 10,922 Other Financing Uses:
Transfers to Other Funds 525 525 641 116 205 846
Total Charges
to Appropriations 95,270 109,203 14,573 (94,630) 12,197 26,770 Excess (Deficit) Resources
Over (Under) Appropriations $ (49,939) $ (64,434) $ 23,449 $ 87,883 $ (32,110) $ (8,661) 193
CITY OF FRESNO, CALIFORNIA
Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP Budgetary Basis) - Measure P - Special Revenue Fund Fiscal Year Ended June 30, 2024
(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 $ 42,811 $ 43,133 $ 41,932 $ (1,201) $ (41,932) $ — Resources (inflows):
Taxes 48,222 57,945 45,274 (12,671) (179) 45,095
Use of Money and Property 2 2 1,408 1,406 — 1,408 Miscellaneous — — 90 90 (89) 1
Intergovernmental — — 81 81 — 81
Other Financing Sources:
Transfers from Other Funds — — — — 8 8
Total Available
For Appropriations 91,035 101,080 88,785 (12,295) (42,192) 46,593 Charges to Appropriations
(outflows):
General Government 105 105 52 (53) (4) 48
Public Ways and Facilities 2,315 2,392 2,187 (205) (371) 1,816 Community Development 1,208 1,208 48 (1,160) 17 65 Culture and Recreation 39,607 50,516 33,822 (16,694) (744) 33,078 Capital Outlay 30,802 35,478 1,401 (34,077) 4,495 5,896 Other Financing Uses:
Transfers to Other Funds 531 531 532 1 204 736
Total Charges
to Appropriations 74,568 90,230 38,042 (52,188) 3,597 41,639 Excess (Deficit) Resources
Over (Under) Appropriations $ 16,467 $ 10,850 $ 50,743 $ 39,893 $ (45,789) $ 4,954 194
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, 2024
(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 $ (14,344) $ (13,972) $ (67) $ 13,905 $ 67 $ — Resources (inflows):
Taxes 3,765 3,765 2,213 (1,552) 47 2,260
Intergovernmental 3,811 3,811 3,087 (724) 70 3,157 Charges for Services 25 25 12 (13) 8,993 9,005
Fines 15,988 15,988 12,290 (3,698) (12,290) —
Use of Money and Property 174 179 358 179 190 548 Miscellaneous 337 338 (300) (638) 300 —
Other Financing Sources:
Transfers from Other Funds 568 568 354 (214) — 354 Total Available
For Appropriations 10,324 10,702 17,947 7,245 (2,623) 15,324 Charges to Appropriations
(outflows):
General Government 750 750 624 (126) — 624
Public Protection 2,716 2,874 1,945 (929) 25 1,970 Public Ways and Facilities 4,105 7,234 2,902 (4,332) 1,018 3,920 Culture and Recreation 2,144 2,005 1,148 (857) (52) 1,096 Community Development 3,024 3,024 — (3,024) 1,609 1,609 Capital Outlay 6,436 9,118 1,987 (7,131) 1,028 3,015 Other Financing Uses:
Transfers to Other Funds 631 631 664 33 64 728
Total Charges
to Appropriations 19,806 25,636 9,270 (16,366) 3,692 12,962 Excess (Deficit) Resources
Over (Under) Appropriations $ (9,482) $ (14,934) $ 8,677 $ 23,611 $ (6,315) $ 2,362 195
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, 2024
(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 $ 57,101 $ 57,858 $ 63,756 $ 5,898 $ (63,756) $ — Resources (inflows):
Charges for Services 11,649 11,649 17,011 5,362 — 17,011 Miscellaneous 1 1 — 1
Use of Money and Property 486 486 2,143 1,657 2,259 4,402 Other Financing Sources:
Transfers from Other Funds 25 25 448 423 — 448
Total Available
for Appropriations 69,261 70,018 83,359 13,341 (61,497) 21,862 Charges to Appropriations
(outflows):
General Government — — 42 42 (42) —
Public Protection 442 1,199 706 (493) — 706
Culture and Recreation 2,188 2,202 5 (2,197) 1 6
Public Ways and Facilities 8,920 9,599 2,022 (7,577) 236 2,258 Capital Outlay 29,635 34,783 1,996 (32,787) 5,085 7,081 Debt Service
Interest — — — — 42 42
Other Financing Uses:
Transfers to Other Funds 6,923 6,923 4,207 (2,716) (772) 3,435 Total Charges
to Appropriations 48,108 54,706 4,771 (43,012) 5,322 13,528 Excess (Deficit) Resources
Over (Under) Appropriations $ 21,153 $ 15,312 $ 78,588 $ 56,353 $ (66,819) $ 8,334 196
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, 2024
(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 662 662 — — 662
Use of Money and Property 534 16 (518) — 16
Miscellaneous — — — 1 1
Other Financing Sources:
Transfers from Other Funds 830 400 (430) — 400
Total Available
for Appropriations 2,026 1,078 (948) 1 1,079
Charges to Appropriations (outflows):
General Government 217 — (217) — —
Community Development 30 639 609 — 639
Total Charges
to Appropriations 247 639 392,000 — 639
Excess (Deficit) Resources
Over (Under) Appropriations $ 1,779 $ 439 $ (1,340) $ 1 $ 440 197
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, 2024
(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 $ 12,810 $ 13,180 $ 14,754 $ 1,574 $ (14,754) $ — Resources (inflows):
Charges for Services 8,197 8,197 10,430 2,233 — 10,430 Use of Money and Property 167 167 404 237 524 928 Miscellaneous 10 10 19 9 (13) 6
Other Financing Source:
Transfers from Other Funds 406 406 1 (405) — 1
Total Available
for Appropriations 21,590 21,960 25,608 3,648 (14,243) 11,365 Charges to Appropriations
(outflows):
Public Ways and Facilities 12,757 13,751 9,572 (4,179) 1,066 10,638 Capital Outlay 1,486 1,486 24 (1,462) (24) —
Other Financing Sources:
Transfers to Other Funds 397 397 454 57 52 506
Total Charges
to Appropriations 14,640 15,634 10,050 (5,584) 1,094 11,144 Excess (Deficit) Resources
Over (Under) Appropriations $ 6,950 $ 6,326 $ 15,558 $ 9,232 $ (15,337) $ 221 198
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, 2024
(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 $ 27,392 $ 27,392 $ 29,616 $ 2,224 $ (29,616) $ — Resources (inflows):
Intergovernmental — — — — — —
Use of Money and Property 38 38 945 907 1,234 2,179 Miscellaneous 466 466 1,186 720 — 1,186
Other Financing Sources:
Transfers Budgeted as
Bond Proceeds 3,715 3,715 743 (2,972) (221) 522
Total Available
for Appropriations 31,611 31,611 32,490 879 (28,603) 3,887 Charges to Appropriations
(outflows):
Capital Outlay 22,367 24,417 324 (24,093) 1,392 3,890 Other Financing Uses:
Transfers to Other Funds — — 1,923 1,923 (1,329) 594 Total Charges
to Appropriations 22,367 24,417 2,247 (22,170) 63 4,484 Excess (Deficit) Resources
Over (Under) Appropriations $ 9,244 $ 7,194 $ 30,243 $ 23,049 $ (28,666) $ (597) 199
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200
CITY OF FRESNO, CALIFORNIA
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2024
(in thousands)
Business-Type Activities - Enterprise Funds
Community
Sanitation
Parks and
Recreation
Total Nonmajor
Enterprise Funds
Assets
Current Assets:
Cash and Investments $ 3,287 $ 50 $ 3,337
Interest Receivable 27 12 39
Accounts Receivable, Net 2,374 — 2,374
Leases Receivable, Current — 209 209
Total Current Assets 5,688 271 5,959
Noncurrent Assets:
Restricted:
Cash and Investments — 1,419 1,419
Total Restricted Assets — 1,419 1,419
Other Assets:
Leases Receivable, Non Current — 1,001 1,001
Other Assets — 12 12
Net Pension Asset 3,428 — 3,428
Total Other Assets 3,428 1,013 4,441
Capital Assets:
Land and Intangibles — 12 12
Buildings, Systems and Improvements — 3,743 3,743
Machinery and Equipment 67 — 67
Infrastructure — 122 122
Less Accumulated Depreciation (67) (2,605) (2,672)
Total Capital Assets, Net — 1,272 1,272
Total Noncurrent Assets 3,428 3,704 7,132
Total Assets 9,116 3,975 13,091
Deferred Outflows of Resources
Deferred Outflows - Pensions 1,056 — 1,056
Deferred Outflows - OPEB 340 — 340
Total Deferred Outflows of Resources 1,396 — 1,396
Liabilities
Current Liabilities:
Accrued Liabilities 679 36 715
Accrued Compensated Absences and HRA 58 — 58
Net OPEB Liability 32 — 32
Due to Other Funds 140 — 140
Bonds Payable — 70 70
Total Current Liabilities 909 106 1,015
Noncurrent Liabilities:
Accrued Compensated Absences and HRA 454 — 454
Bonds Payable — 1,322 1,322
Net OPEB Liability 1,256 — 1,256
Total Noncurrent Liabilities 1,710 1,322 3,032
Total Liabilities 2,619 1,428 4,047
Deferred Inflows of Resources
Unamortized Pension Expense 640 — 640
Unamortized OPEB Expense 821 — 821
Deferred Inflows - Leases — 1,123 1,123
Total Deferred Inflows of Resources 1,461 1,123 2,584 Net Position
Net Investment in Capital Assets — (4) (4)
Restricted for Net Pension Asset 3,428 — 3,428
Unrestricted (deficit) 3,004 1,428 4,432
Total Net Position $ 6,432 $ 1,424 $ 7,856
201
CITY OF FRESNO, CALIFORNIA
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds
Fiscal Year Ended June 30, 2024
(in thousands)
Business-Type Activities - Enterprise Funds
Community
Sanitation
Parks and
Recreation
Total Nonmajor
Enterprise Funds
Operating Revenues:
Charges for Services $ 9,551 $ 685 $ 10,236
Operating Expenses:
Cost of Services 6,222 73 6,295
Administration 4,001 27 4,028
Depreciation 3 190 —
Total Operating Expenses 10,226 290 193
Operating Income (Loss) (675) 395 10,516
Non-Operating Revenue (Expenses):
Interest Income 89 59 —
Net Increase (Decrease) in Cash Fair Value 91 — 148
Interest Expense — (95) 91
Total Non-Operating Revenue (Expenses) 180 (36) (95) Income (Loss) Before Transfers (495) 359 —
Transfers In — 258 —
Transfers Out (1,086) — 144
Change in Net Position (1,581) 617 (964)
Total Net Position - Beginning 8,013 807 8,820
Total Net Position - Ending $ 6,432 $ 1,424 $ 7,856
202
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Fiscal Year Ended June 30, 2024
(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 $ 11,965 $ 127 $ 12,092
Cash Received from Interfund Services Provided — — — Cash Payments to Suppliers for Services (4,001) (44) (4,045) Cash Paid for Interfund Services Used (1,630) (1) (1,631) Cash Payments to Employees for Services (4,881) (41) (4,922) Net Cash Provided by (Used for) Operating Activities 1,453 41 1,494
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Interest Payments on Capital Debt — (67) (67)
Payment for Cost of Issuance — — —
Principal Payments on Capital Debt-Bonds — (65) (65) Acquisition and Construction of Capital Assets — — — Net Cash Provided by (Used for) Capital and Related Financing Activities — (132) (132)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:
Borrowing Receipt from (Payment to) Other Funds — — — Transfers In — 258 258
Transfers Out (1,087) — (1,087)
Net Cash Provided by (Used for) Non-Capital Financing
Activities (1,087) 258 (829)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and Dividends Received (Paid) on Investments 177 52 229 Net Cash Provided by (Used for) Investing Activities 177 52 229 Net Increase (Decrease) in Cash and Cash Equivalents 543 219 762 Cash and Cash Equivalents, Beginning of Year 2,744 1,250 3,994 Cash and Cash Equivalents, End of Year $ 3,287 $ 1,469 $ 4,756 203
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Fiscal Year Ended June 30, 2024 (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) $ (675) $ 395 $ (280)
Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation expense 3 190 193
Change in assets and liabilities:
Decrease (increase) in accounts receivable 223 198 421 Decrease (increase) in due from other funds 1,385 — 1,385 Decrease (increase) in prepaid items — — —
Decrease (increase) in net pension asset and deferred outflows pensions (531) — (531) Decrease (increase) in prepaid insurance — 1 1
(Decrease) increase in accounts payable 295 14 309
(Decrease) increase in salaries payable 223 (1) 222
(Decrease) increase in due to other funds 85 (539) (454) (Decrease) increase in net OPEB liability (22) — (22) (Decrease) increase in deferred inflows of resources pensions 467 (217) 250 Net Cash Provided by (Used for) Operating Activities $ 1,453 $ 41 $ 1,494 Reconciliation of Cash and Cash Equivalents to
the Statement of Net Position:
Cash and Investments:
Unrestricted $ 3,287 $ 50 $ 3,337
Restricted - Current and Noncurrent — 1,419 1,419
Cash and Cash Equivalents at End of Year on Statement
of Cash Flows $ 3,287 $ 1,469 $ 4,756
Noncash Investing, Capital, and Financing Activities:
Amortization of bond premium, discount and loss on refunding — (15) (15) Decrease (increase) in fair value of investments (91) — (91) 204
Assets
Current Assets:
Cash and Investments $ 6,846 $ 59,598 $ — $ 29,342 $ — $ 95,786 Interest Receivable 197 444 28 253 — 922
Accounts Receivable, Net 2,994 13 247 16 — 3,270
Leases Receivable, Current — 8 — — — 8
Grants Receivable — 332 — — — 332
Inventories — 1,730 — — — 1,730
Prepaid Items — 1,210 22 — — 1,232
Due from Other Funds — 3,833 — — — 3,833
Total Current Assets 10,037 67,168 297 29,611 — 107,113 Noncurrent Assets:
Restricted:
Cash and Investments 2,277 — — — — 2,277
Total Restricted Assets 2,277 — — — — 2,277
Other Assets:
Other Receivables — 23 — — — 23
Leases Receivable, Non Current — 324 — — — 324
Net Pension Asset 3,071 7,360 — — — 10,431
Total Other Assets 3,071 7,707 — — — 10,778
Capital Assets:
Buildings, Systems & Improvements 124 21,543 — — — 21,667 Machinery & Equipment 121 198,996 — — — 199,117
Right to Use Assets Being Amortized — 13,988 — — — 13,988 Construction in Progress — 31,300 — — — 31,300
Less Accumulated Depreciation and
Amortization (133) (117,716) — — — (117,849)
Total Capital Assets, Net 112 148,111 — — — 148,223 Total Noncurrent Assets 5,460 155,818 — — — 161,278 Total Assets 15,497 222,986 297 29,611 — 268,391
Deferred Outflows of Resources
Pension Contributions 774 2,148 — — — 2,922
Deferred Outflows - Pension 1,350 3,921 — — — 5,271 Deferred Outflows - OPEB 651 1,226 128 — — 2,005
Total Deferred Outflows of Resources 2,775 7,295 128 — — 10,198
CITY OF FRESNO, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
(in thousands)
Billing
and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Totals
205
Liabilities
Current Liabilities:
Accrued Liabilities 622 8,140 1,831 — — 10,593
Accrued Compensated Absences & HRA 286 467 27 — — 780 Liability for Self-Insurance — — 39,736 6,400 — 46,136 Unearned Revenue 75 19,157 — — — 19,232
Due to Other Funds 13 12,904 601 — — 13,518
Capital Finance Obligations — 7,671 — — — 7,671
Lease Liability — 6,709 — — — 6,709
Net OPEB LIability 64 154 12 — — 230
Total Current Liabilities 1,060 55,202 42,207 6,400 — 104,869 Noncurrent Liabilities:
Accrued Compensated Absences & HRA 1,446 4,192 299 — — 5,937 Capital Finance Obligations — 35,501 — — — 35,501 Liability for Self-Insurance — — 220,538 — — 220,538 Lease Liability — 1,953 — — — 1,953
Net OPEB Liability 2,424 2,912 (530) — — 4,806
Deposits Held for Others 4,998 — — — — 4,998
Total Noncurrent Liabilities 8,868 44,558 220,307 — — 273,733 Total Liabilities 9,928 99,760 262,514 6,400 — 378,602 Deferred Inflows of Resources
Unamortized Pension Expense 399 121 — — — 520
Unamortized OPEB Expense 1,759 4,172 975 — — 6,906 Deferred Inflows - Leases — 317 — — — 317
Total Deferred Inflows of Resources 2,158 4,610 975 — — 7,743 Net Position
Net Investment in Capital Assets 111 95,354 — — — 95,465 Restricted for Net Pension Asset 3,071 7,360 — — — 10,431 Unrestricted (Deficit) 3,004 23,197 (263,064) 23,211 — (213,652) Total Net Position (Deficit) $ 6,186 $ 125,911 $ (263,064) $ 23,211 $ — $ (107,756)
CITY OF FRESNO, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
(in thousands)
Billing
and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Totals
206
CITY OF FRESNO, CALIFORNIA
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
Fiscal Year Ended June 30, 2024
(in thousands)
Billing
and
Collection
General
Services
Risk
Management
Employees
Healthcare
Plan
Retirees
Healthcare
Plan Totals
Operating Revenues:
Charges for Services $ 13,135 $ 110,466 $ 58,079 $ 73,288 $ 8,364 $ 263,332 Operating Expenses:
Cost of Services 8,715 52,972 85,115 63,527 7,796 218,125 Administration 5,567 23,238 9,994 4,826 568 44,193 Depreciation 6 18,523 — — — 18,529
Total Operating Expenses 14,288 94,733 95,109 68,353 8,364 280,847 Operating Income (Loss) (1,153) 15,733 (37,030) 4,935 — (17,515) Non-Operating Revenue (Expenses):
Operating Grants — 332,000 — — — 332,000
Interest Income 655 1,702 59 772 — 3,188
Net Increase (Decrease) in Cash Fair
Value 1,417 2,016 496 — — 3,929
Interest Expense — (940) — — — (940)
Gain (loss) on Disposal of Capital Assets — 172 — — — 172 Total Non-Operating Revenue (Expenses) 2,072 3,282 555 772 — 6,681 Income (Loss) Before Contributions &
Transfers 919 19,015 (36,475) 5,707 — (10,834)
Transfers In 1,521 783 500 — — 2,804
Transfers Out (270) (490) (39) — — (799)
Change in Net Position 2,170 19,308 (36,014) 5,707 — (8,829) Total Net Position (Deficit) - Beginning 4,016 106,603 (227,050) 17,504 — (98,927) Total Net Position (Deficit) - Ending $ 6,186 $ 125,911 $ (263,064) $ 23,211 $ — $ (107,756) 207
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30, 2024
(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 $ 2,659 $ 92,691 $ — $ 12,465 $ 5,427 $ 113,242 Cash Received from Interfund Services Provided 11,320 27,561 46,481 60,823 2,937 149,122 Cash Payments from (to) Suppliers for Services (22,539) (53,418) (12,500) (6,416) (568) (95,441) Cash Paid for Interfund Services Used (2,700) (1,245) (132) — — (4,077) Cash Payments to Employees for Services (9,082) (21,235) (6,467) — — (36,784) Cash Payments for Claims and Refunds (36,342) (63,528) (7,796) (107,666) Net Cash Provided by (Used for) Operating
Activities (20,342) 44,354 (8,960) 3,344 — 18,396
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Capital Contributions — 16,410 — — — 16,410
Interest Payments on Capital Debt — (1,338) — — — (1,338) Proceeds from Capital Finance Activity — (23,585) — — — (23,585) Principal Payments on Capital Finance Obligations — (7,203) — — — (7,203) Proceeds from Sale of Capital Assets — 172 — — — 172 Acquisition and Construction of Capital Assets — (18,042) — — — (18,042) Net Cash Provided by (Used for) Capital and
Related Financing Activities — (33,586) — — — (33,586)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
Borrowing Receipt from (Payment to) Other Funds — (12,904) — — — (12,904) Transfers In 1,521 783 500 — — 2,804
Transfers Out (270) (490) (39) — — (799)
Net Cash Provided by (Used for) Non-Capital
Financing Activities 1,251 (12,611) 461 — — (10,899) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and Dividends Received (Paid) on Investments 2,076 3,634 608 745 — 7,063 Net Cash Provided by (Used for) Investing
Activities 2,076 3,634 608 745 — 7,063
Net Increase (Decrease) in Cash and Cash Equivalents (17,015) 1,791 (7,891) 4,089 — (19,026) Cash and Cash Equivalents, Beginning of Year 26,138 57,475 7,891 25,253 — 116,757 Cash and Cash Equivalents, End of Year $ 9,123 $ 59,266 $ — $ 29,342 $ — $ 97,731 208
CITY OF FRESNO, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30, 2024 (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) $ (1,153) $ 15,733 $ (37,030) $ 4,935 $ — $ (17,515) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation expense 6 18,523 — — — 18,529
Change in assets and liabilities:
Decrease (increase) in accounts receivable (1,345) (6) (3) (16) — (1,370) Decrease (increase) in due from other funds — (633) — — — (633) Decrease (increase) in material and supplies inventory — (239) — — — (239) Decrease (increase) in prepaid items 104 (771) (22) — — (689) Decrease (increase) in net pension asset and deferred
outflows pensions 123 1,702 55 — — 1,880
(Decrease) increase in accounts payable (155) (1,105) (2,611) (402) — (4,273) (Decrease) increase in salaries payable 111 264 110 327 — 812 (Decrease) increase in due to other funds (18,452) 4,307 600 — — (13,545) (Decrease) increase in unearned revenue 75 7,366 — — — 7,441 (Decrease) increase in liability for self-insurance — — 30,114 (1,500) — 28,614 (Decrease) increase in deposits 318 — — — — 318
(Decrease) increase in net OPEB liability (52) (135) (47) — — (234) (Decrease) increase in deferred inflows of resources
pensions 77 (780) (126) — (829)
Net Cash Provided by (Used for) Operating
Activities $ (20,343) $ 44,226 $ (8,960) $ 3,344 $ — $ 18,267 Reconciliation of Cash and Cash Equivalents
to the Statement of Net Position:
Cash and Investments:
Unrestricted $ 6,846 $ 59,598 $ — $ 29,342 $ — $ 95,786 Restricted - Current and Noncurrent 2,277 — — — — 2,277 Cash and Cash Equivalents at End of Year
on Statement of Cash Flows $ 9,123 $ 59,598 $ — $ 29,342 $ — $ 98,063 Noncash Investing, Capital, and Financing Activities:
Acquisition and construction of capital assets on
accounts payable $ — $ 1,402 $ — $ — $ — $ 1,402
Borrowing under capital financing — 23,585 — — — 23,585 Decrease (increase) in fair value of investments (1,417) (2,016) (496) — — (3,929) 209
CITY OF FRESNO, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Pension Trust Funds
June 30, 2024
(in thousands)
Pension Trust Funds
Fire and Police Employees
Retirement Retirement Total
System System
Assets
Cash and Investments $ 746 $ 545 $ 1,291
Receivables:
Receivables for Investments Sold 5,404 5,005 10,409
Interest and Dividends Receivable 2,270 1,868 4,138
Other Receivables 866 713 1,579
Total Receivables 8,540 7,586 16,126
Investments, at Fair Value:
Short-Term Investments 8,156 6,715 14,871
Domestic Equity 536,005 441,275 977,280
International Equities 431,079 354,893 785,972
Private Equity 159,954 131,684 291,638
Fixed Income 272,387 224,247 496,634
Private Debt/Credit 295,521 243,293 538,814
Real Estate 464,049 382,655 846,704
Multi-Assets 35,352 29,104 64,456
Total Investments, at Fair Value 2,202,503 1,813,866 4,016,369 Collateral Held for Securities Lent 30,049 24,738 54,787 Capital Assets, Net of Accumulated Depreciation 212 212 424 Other Assets 105 105 210
Total Assets 2,242,155 1,847,052 4,089,207
Liabilities
Accrued Liabilities 7,721 6,356 14,077
Collateral Held for Securities Lent 30,049 24,738 54,787 Other Liabilities 1,014 853 1,867
Total Liabilities 38,784 31,947 70,731
Net Position
Net Position Restricted for Pension Benefits $ 2,203,371 $ 1,815,105 $ 4,018,476 210
CITY OF FRESNO, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Pension Trust Funds
Fiscal Year Ended June 30, 2024
(in thousands)
Pension Trust Funds
Fire and Police Employees
Retirement Retirement Total
System System
Additions
Contributions:
Employer $ 30,635 $ 28,621 $ 59,256
System Members 13,108 18,833 31,941
Total Contributions 43,743 47,454 91,197
Investment Income:
Net Appreciation in Fair Value of Investments 229,712 189,059 418,771 Interest 10,375 8,547 18,922
Dividends 7,616 6,267 13,883
Other Investment Related 154 126 280
Total Investment Income 247,857 203,999 451,856
Less Investment Expense (41,587) (34,305) (75,892)
Total Net Investment Income 206,270 169,694 375,964
Securities Lending Income:
Securities Lending Earnings 1,849 1,523 3,372
Less Securities Lending Expense (1,650) (1,359) (3,009) Net Securities Lending Income 199 164 363
Total Additions 250,212 217,312 467,524
Deductions
Benefit Payments (including post retirement supplemental benefits) 89,196 81,556 170,752
Refund of Contributions 1,023 1,646 2,669
General and Administrative Expenses 2,458 2,318 4,776 Total Deductions 92,677 85,520 178,197
Change in Net Position 157,535 131,792 289,327
Net Position - Beginning 2,045,836 1,683,313 3,729,149 Net Position - Ending $ 2,203,371 $ 1,815,105 $ 4,018,476 211
CITY OF FRESNO, CALIFORNIA
Combining Statement of Fiduciary Net Position
Custodial Funds
Fiscal Year Ended June 30, 2024
(in thousands)
City Special Total
Departmental Assessment District Custodial Funds
Assets
Cash and Investments $ 2,600 $ 186 $ 2,786
Restricted Cash and Investments Held by Fiscal Agent — 545 545 Interest Receivable 28 3 31
Due From Other Governments — 557 557
Total Assets $ 2,628 $ 1,291 $ 3,919
Liabilities
Accrued Liabilities $ 60 $ — $ 60
Due to Other Governments 3 — 3
Total Liabilities $ 63 $ — $ 63
Net Position
Restricted for:
Individuals, Organizations, and Other Governments 2,565 1,291 3,856 Total Net Position $ 2,565 $ 1,291 $ 3,856
212
CITY OF FRESNO, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Fiscal Year Ended June 30, 2024
(in thousands)
City Special Total
Departmental Assessment District Custodial Funds
Additions:
Fees Collected for Organizations and Other Governments $ 6,943 $ — $ 6,943 Taxes Collected for Organizations and Other Governments 1,857 — 1,857 Special Assessments for Organizations and Other
Governments — 754 754
Investment Income 35 1 36
Total Additions 8,835 1,312 10,147
Deductions:
Payments to Individuals, Organizations, and Other
Governments 8,496 739 9,235
Miscellaneous — 203 203
Total Deductions 8,496 942 9,438
Change in Net Position 339 370 709
Net Position:
Beginning of year 2,226 921 3,147
End of period year $ 2,565 1,291 $ 3,856
213
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 depicts 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 215-219) Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source: The property tax. (pages 220-223)
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 224-233) 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 234-235) 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 236-240)
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, 2024 214
CITY OF FRESNO, CALIFORNIA
Net Position By Component
Last Ten Fiscal Years
(dollars in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities
Net Investment in Capital
Assets $ 771,198 $ 795,884 $ 787,522 $ 796,242 $ 793,963 $ 787,395 $ 794,759 $ 836,439 $ 930,489 $ 881,764 Restricted 146,174 151,345 168,927 171,473 178,858 239,898 304,925 308,444 605,023 454,508 Unrestricted (Deficit) (86,424) (22,058) 28,252 43,380 105,676 27,932 (76,811) 56,963 (155,348) 34,872 Total Governmental
Activities $ 830,948 $ 925,171 $ 984,701 $ 1,011,095 $ 1,078,497 $ 1,055,225 $ 1,022,873 $ 1,201,846 $ 1,380,164 $ 1,371,144 Business-Type Activities
Net Investment in Capital
Assets $ 841,773 $ 896,818 $ 955,128 $ 958,169 $ 1,054,185 $ 1,090,352 $ 1,120,876 $ 1,094,088 $ 1,015,061 $ 987,193 Restricted — — — — — — — — 51,010 62,015
Unrestricted (Deficit) 300,296 307,315 353,436 440,872 414,184 472,210 460,988 526,841 595,300 845,548 Total Business-Type
Activities $ 1,142,069 $ 1,204,133 $ 1,308,564 $ 1,399,041 $ 1,468,369 $ 1,562,562 $ 1,581,864 $ 1,620,929 $ 1,661,371 $ 1,894,756 Primary Government
Net Investment in Capital
Assets $ 1,692,702 $ 1,742,650 1,754,411 $ 1,848,148 $ 1,877,747 $ 1,915,635 $ 1,930,527 $ 1,930,527 $ 1,945,550 $ 1,868,957 Restricted 151,345 168,927 171,473 178,858 239,898 304,925 308,444 308,444 656,033 516,523 Unrestricted (Deficit) 285,257 381,688 484,252 519,860 500,142 384,177 583,804 583,804 439,952 880,420 Total Primary
Government $ 1,973,017 $ 2,129,304 $ 2,293,265 $ 2,410,136 $ 2,546,866 $ 2,617,787 $ 2,604,737 $ 2,822,775 $ 3,041,535 $ 3,265,900 Source(s): City of Fresno, Finance Department
Fiscal Years
$ Dollars
Governmental Activities
Net Investment in Capital Assets
Restricted
Unrestricted
2015201620172018201920202021202220232024
$-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
2015201620172018201920202021202220232024
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
215
CITY OF FRESNO, CALIFORNIA
Change in Net Position
Last Ten Fiscal Years
(dollars in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental Activities:
General Government $ 28,590 $ 32,206 $ 44,157 $ 31,319 $ 42,785 $ 46,114 $ 90,218 $ 90,035 $ 80,926 $ 92,381 Public Protection 177,829 187,733 196,006 206,163 214,903 271,085 305,172 270,465 283,947 367,609 Public Ways and Facilities 64,430 60,875 72,984 76,289 80,369 93,243 123,068 101,306 118,362 173,153 Culture and Recreation 20,036 20,223 23,500 19,771 23,809 26,039 30,882 30,324 52,570 68,735 Community Development 29,257 28,789 28,913 30,412 29,188 31,102 41,053 57,123 130,194 109,567 Redevelopment — — — — — — — — — —
Interest on Long-Term Debt 19,519 18,787 18,658 14,413 14,101 13,652 12,552 12,683 13,738 13,423 Total Governmental Activities 339,661 348,613 384,218 378,367 405,155 481,235 602,945 561,936 679,737 824,868 Business-Type Activities:
Water System 62,205 64,454 63,753 73,677 94,066 101,406 100,181 112,301 123,770 140,858 Sewer System 66,148 63,980 64,124 65,991 71,793 65,166 74,428 78,646 83,232 86,052 Solid Waste Management 32,976 26,650 26,605 30,353 31,702 36,915 41,713 41,818 40,907 43,020 Transit 45,435 44,191 47,958 53,937 57,864 62,016 66,135 71,038 96,519 83,681 Airports 28,164 28,509 29,938 31,192 33,262 35,984 41,090 40,413 44,097 45,359 Fresno Convention Center 10,147 9,750 10,798 8,856 8,701 7,108 5,096 9,235 7,418 8,750 Community Sanitation 8,235 6,904 8,978 10,077 10,093 9,147 8,698 8,743 8,450 10,445 Parking — — — — — — — — — —
Parks and Recreation 340 316 410 283 502 586 572 416 513 385 Development Services — — — — — — — — — —
Stadium 3,266 3,191 3,539 2,710 2,600 2,702 2,739 2,925 3,264 2,862 Total Business-Type Activities 256,916 247,945 256,103 277,076 310,583 321,030 340,652 365,535 408,170 421,412 Total Primary Government Expenses $ 596,577 $ 596,558 $ 640,321 $ 655,443 $ 715,738 $ 802,265 $ 943,597 $ 927,471 $ 1,087,907 $ 1,246,280 Program Revenues
Governmental Activities:
Charges for Services:
General Government $ 23,194 $ 22,580 $ 46,742 $ 17,171 $ 19,075 $ 14,805 $ 15,315 $ 22,040 $ 23,448 $ 27,237 Public Protection 31,872 44,037 22,382 32,275 40,945 15,599 16,544 62,152 9,092 22,105 Public Ways and Facilities 17,426 20,468 21,911 21,009 20,461 22,219 27,060 37,839 42,770 40,793 Culture and Recreation 4,577 4,949 3,645 3,935 3,711 1,742 1,364 4,840 412 2,819 Community Development 21,130 25,239 23,496 23,033 20,347 19,400 13,050 32,305 14,492 23,417 Operating Grants and Contributions 39,550 34,015 25,016 26,488 40,278 39,037 40,393 74,245 106,441 132,944 Capital Grants and Contributions 62,472 57,955 44,586 38,584 37,525 49,161 135,064 128,553 220,903 101,289 Total Governmental Activities Program
Revenues 200,221 209,243 187,778 162,495 182,342 161,963 248,790 361,974 417,558 350,604 Business-Type Activities:
Charges for Services:
Water System 74,285 77,959 101,895 107,377 119,029 120,252 127,651 138,492 124,858 125,514 Sewer System 81,955 78,186 83,635 81,651 81,085 77,249 77,940 87,795 84,086 89,248 Solid Waste Management 31,208 31,975 31,170 30,100 31,804 29,546 29,132 35,423 32,517 30,969 Transit 13,089 12,479 11,452 10,746 9,348 2,516 (2,328) 11,242 3,678 3,589 Airports 25,670 27,646 27,835 29,634 32,011 29,192 25,991 40,884 37,835 47,882 Fresno Convention Center 2,960 3,634 3,752 3,318 3,796 2,415 (2) 5,744 4,307 5,354 Community Sanitation 9,746 9,733 9,613 9,422 9,841 8,982 8,786 10,706 9,559 9,551 Parking — — — — — — — — — —
Parks and Recreation 329 325 340 323 410 278 411 630 687 685 Development Services — — — — — — — — — —
Stadium 1,248 677 1,082 238 406 344 580 279 102 585 Operating Grants and Contributions 40,215 29,190 37,187 22,939 37,910 80,766 56,334 71,273 112,764 52,958 Capital Grants and Contributions 14,791 18,015 47,576 69,570 33,249 38,027 29,884 17,893 31,550 242,831 Total Business-Type Activities Program
Revenues 295,496 289,819 355,537 365,318 358,889 389,567 354,379 420,361 441,943 609,166 Total Primary Government Program
Revenues $ 495,717 $ 499,062 $ 543,315 $ 527,813 $ 541,231 $ 551,530 $ 603,169 $ 782,335 $ 859,501 $ 959,770 216
CITY OF FRESNO, CALIFORNIA
Change in Net Position
Last Ten Fiscal Years (Continued)
(dollars in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net (Expense)/Revenue
Governmental Activities $ (139,440) $ (139,370) $ (196,440) $ (215,872) $ (222,813) $ (319,272) $ (354,155) $ (199,962) $ (262,179) $ (474,264) Business-Type Activities 38,580 41,874 99,434 88,242 48,306 68,537 13,727 54,826 33,773 187,754 Total Primary Government Net Expense $ (100,860) $ (97,496) $ (97,006) $ (127,630) $ (174,507) $ (250,735) $ (340,428) $ (145,136) $ (228,406) $ (286,510) General Revenues and Other Changes
in Net Position
Governmental Activities:
Property Taxes $ 113,655 $ 117,048 $ 123,858 $ 130,109 $ 138,201 $ 142,250 $ 149,822 $ 154,130 $ 167,088 $ 180,976 Sales Taxes - Shared Revenues 61,571 74,010 86,128 85,512 96,939 98,531 125,279 192,874 197,563 197,924 In-Lieu Sales Tax 19,907 10,559 — — — — — — — — Franchise Taxes 13,469 13,722 14,335 14,811 14,493 16,101 17,729 18,271 20,180 23,872 Business Tax 17,781 16,879 19,101 20,982 18,162 20,868 20,577 21,764 26,107 23,197 Room Tax 11,006 12,045 13,127 13,936 13,998 12,453 12,566 15,205 16,454 15,604 Other Taxes 2,407 2,521 2,348 2,304 2,855 2,241 1,825 3,528 2,221 3,151 Investment Earnings 879 1,652 1,215 1,348 8,413 11,863 1,786 (10,409) 8,245 26,928 Gain on Sale of Capital Assets 402 218 214 223 2,517 2 — — 1,732 172 Special Item - Loss on Receivable/
Transfer of Assets — — — (8,152) — — — — — —
Extraordinary (Loss):
Redevelopment Agency Net Position
Distributed to Successor Agency — — — — — — — — — — Transfers: (6,290) (15,061) (4,356) (4,820) (5,363) (8,309) (7,781) (7,899) (8,154) (6,580) Total Governmental Activities 234,787 233,593 255,970 256,253 290,215 296,000 321,803 387,464 431,436 465,244 Business-Type Activities:
Investment Earnings 2,998 5,129 641 2,614 15,624 17,316 (2,206) (24,697) (1,299) 39,051 Debt Forgiveness — — — — — — — — — —
Other Financing Source- Leases — — — — — — — — (188) — Gain on Sale of Capital Assets 38 — — 36 35 31 — — 2 — Transfers: 6,290 15,061 4,356 4,820 5,363 8,309 7,781 7,899 8,154 6,580 Total Business-Type Activities 9,326 20,190 4,997 7,470 21,022 25,656 5,575 (16,798) 6,669 45,631 Total Primary Government $ 244,113 $ 253,783 $ 260,967 $ 263,723 $ 311,237 $ 321,656 $ 327,378 $ 370,666 $ 438,105 $ 510,875 Change in Net Position
Governmental Activities $ 95,347 $ 94,223 $ 59,530 $ 40,381 $ 67,402 $ (23,272) $ (32,352) $ 187,502 $ 169,257 $ (9,020) Business-Type Activities 47,906 62,064 104,431 95,712 69,328 94,193 19,302 37,804 40,442 233,385 Total Primary Government $ 143,253 $ 156,287 $ 163,961 $ 136,093 $ 136,730 $ 70,921 $ (13,050) $ 225,306 $ 209,699 $ 224,365 Source(s): City of Fresno, Finance Department
217
CITY OF FRESNO, CALIFORNIA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $12,691 $12,691 $18,417 $3,919 $ 2,071 $ — $ — $ — $ — $ — Restricted 105 11 37 16 10 6 — — — —
Committed 5,207 1,610 22,104 25,565 37,004 37,718 40,655 48,360 54,466 58,980 Assigned 1,874 2,811 3,890 2,845 4,562 5,158 19,249 19,215 18,633 11,025 Unassigned 24,643 31,808 26,749 19,533 25,312 33,046 43,039 37,116 54,284 39,034 Total General Fund $ 44,520 $ 48,931 $ 71,197 $ 51,878 $ 68,959 $ 75,928 $ 102,943 $ 104,691 $ 127,383 $ 109,039 All other Governmental
Funds
Restricted $ 146,002 $ 151,726 $ 163,802 $ 166,207 $ 172,587 $ 197,325 $ 255,324 $ 216,922 $ 275,090 $ 287,888 Assigned 15,928 15,847 12,177 16,115 16,137 11,194 12,843 37,622 31,061 30,464 Unassigned (Deficit) (9,670) (6,284) (788) (809) (1,950) (5,590) (56,750) (2,678) (2,587) — Total all other
Governmental Funds $ 152,260 $ 161,289 $ 175,191 $ 181,513 $ 186,774 $ 202,929 $ 211,417 $ 251,866 $ 303,564 $ 318,352 Source(s): City of Fresno, Finance Department
218
CITY OF FRESNO, CALIFORNIA
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes $ 276,847 $ 266,521 $ 298,425 $ 289,140 $ 315,903 $ 330,423 $ 366,645 $ 452,241 $ 456,443 $ 463,566 Licenses and Permits 6,569 7,102 7,291 7,829 7,337 7,915 9,276 8,332 9,064 9,746 Intergovernmental 41,915 39,036 38,770 39,318 41,706 55,879 126,391 138,674 249,990 192,542 Charges for Services 44,692 46,398 49,538 51,294 57,413 53,493 64,462 66,961 81,966 79,069 Fines 3,392 4,271 3,487 3,872 3,643 3,315 1,792 2,726 2,482 3,122 Use of Money and Property 1,643 2,105 1,285 1,305 6,542 9,538 1,684 (7,050) 10,557 21,883 Miscellaneous 8,800 8,156 36,448 4,504 3,640 2,017 3,125 8,436 9,162 1,560 Total Revenues 383,858 373,589 435,244 397,262 436,184 462,580 573,375 670,320 819,664 771,488 Expenditures
General Government 13,841 17,490 26,257 21,285 28,077 29,286 71,211 65,503 75,016 66,065 Public Protection 188,050 201,656 212,828 221,043 226,108 243,099 256,635 287,640 300,972 339,161 Public Ways and Facilities 35,607 38,293 42,430 41,682 50,561 53,686 63,186 73,443 89,085 97,898 Culture and Recreation 15,433 17,735 16,928 18,257 18,140 20,911 26,131 25,623 42,220 58,842 Community Development 30,320 29,511 29,360 31,483 30,961 32,970 39,983 57,344 126,480 103,851 Capital Outlay 38,984 23,145 29,990 31,401 26,168 27,605 54,776 75,441 67,506 78,008 Debt Service:
Principal 19,218 17,435 19,196 17,568 18,956 19,911 21,191 20,782 23,683 22,459 Interest 19,511 18,629 17,779 14,752 14,515 13,692 12,602 12,357 11,494 10,329 Total Expenditures 360,964 363,894 394,768 397,471 413,486 441,160 545,715 618,133 736,456 776,613 Excess (Deficiency) of Revenues
Over (Under) Expenditures 22,894 9,695 40,476 (209) 22,698 21,420 27,660 52,187 83,208 (5,125) Other Financing Sources (Uses)
Transfers In 44,695 45,251 55,930 49,397 41,142 51,823 116,697 64,700 62,188 38,620 Transfers Out (50,573) (49,446) (59,055) (57,418) (46,110) (59,145) (128,855) (74,690) (71,643) (45,954) 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 — — — Finance Capital Purchase 966 7,331 4,126 3,162 2,228 9,026 83 — — 8,903 Sale of Capital Assets 785 609 2,046 223 2,382 — — — — — Total Other Financing Sources
(Uses) (4,127) 3,745 (4,308) (4,636) (358) 1,704 7,843 (9,990) (9,455) 1,569 Special Item
Loss on Receivable — — (8,152) — — — — — — —
Net Change in Fund Balances $ 18,767 $ 13,440 $ 36,168 $ (4,845) $ 22,340 $ 23,124 $ 35,503 $ 42,197 $ 73,753 $ (3,556) Debt Service as a Percentage of
Non-Capital Expenditures 11.94 % 11.00 % 10.29 % 9.11 % 8.83 % 8.16 % 6.55 % 6.27 % 5.55 % 4.66 % 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: (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; (2021) $29,973,000; (2022) $89,808,000; (2023) $103,059,000, and (2024) $72,431,000. 219
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
2015 $ 28,638,669,937 $ 1,444,805,569 $ 30,083,475,506 1.230610 100% 2016 30,026,361,027 1,500,061,596 31,526,422,623 1.229360 100% 2017 31,344,820,623 1,596,315,117 32,941,135,740 1.229780 100% 2018 32,837,504,668 1,616,397,886 34,453,902,554 1.247240 100% 2019 34,713,392,408 1,899,808,202 36,613,200,610 1.244270 100% 2020 36,659,070,484 1,899,510,831 38,558,581,315 1.247088 100% 2021 38,644,667,812 2,225,286,118 40,869,953,930 1.271974 100% 2022 40,198,896,767 2,181,351,026 42,380,247,793 1.264390 100% 2023 43,203,054,898 2,540,898,809 45,743,953,707 1.274772 100% 2024 46,333,291,258 2,956,701,021 49,289,992,279 1.267222 100% Fiscal Years
$ Dollars
Estimated Value of Taxable Property
Secured
Unsecured
2015 2016 2017 2018 2019 2015 2021 2022 2023 2024
$0
$10,000,000,000
$20,000,000,000
$30,000,000,000
$40,000,000,000
$50,000,000,000
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. 220
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
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 2022 1.0 0.032438 1.032438 0.213864 0.018088 1.264390 2023 1.0 0.032438 1.032438 0.213864 0.018088 1.264390 2024 1.0 0.032438 1.032438 0.170186 0.020920 1.223544 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.
221
CITY OF FRESNO, CALIFORNIA
Principal Property Taxpayers
Current Year and Nine Years Ago
2024 2015
Taxpayer Type of Business
Taxable
Assessed
Value
Rank
% of Total
County
Assessed
Value
Taxable
Assessed
Value
Rank
% of Total
County
Assessed
Value
Gap Inc.
Commercial, Unsecured $ 216,602,500 1 0.44 % $ 109,817,600 5 0.37 % Amazon.com Services LLC Miscellaneous,
Unsecured 187,720,300 2 0.38 % — — —
River Park Properties Commercial 181,515,290 3 0.37 % 146,808,851 2 0.49 % Meganova LP Apartments 173,915,612 4 0.35 % — — —
Gallo E & J Winery
Commercial, Unsecured 162,885,333 5 0.33 % 185,813,458 1 0.62 % Macerich Fresno Limited Partnership
Commercial 152,699,433 6 0.31 % 137,833,576 3 0.46 % Comcast of Fresno Inc. No Secured Property 114,770,100 7 0.23 % 120,497,400 4 0.40 % DPML Orange LLC
Commercial 104,646,920 8 0.21 % — — —
RPI Fig Garden LP Commercial 93,001,442 9 0.19 % — — — Foster Poultry Farms Industrial 88,765,330 10 0.18 % — — — Donahue Schriber Realty Group LP — — — — 90,183,877 6 0.30 % Capri Sun Inc. — — — — 63,833,350 7 0.21 %
Fresno Supreme Inc. — — — — 54,240,616 8 0.18 %
M L Street Properties — — — — 53,229,566 9 0.18 %
Villagio Shopping Center LLC — — — — 50,960,339 10 0.17 % Totals $ 1,476,522,260 2.9956 % $ 1,013,218,633 3.3680 % Source(s): Avenu Insights & Analytics and California Municipal Statistics, Inc., as compiled by Willdan Financial Services.
Note(s): 2023/24 Taxable Assessed Valuation: $49,289,992,279. 2014/15 Taxable Assessed Valuation: $30,083,475,506.
222
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
2015 $ 96,468,363 $ 11,900,327 $ 1,609,109 $ 109,978 $ 106,989,456 97.28 % $ 395,578 $ 107,385,034 97.64 % 2016 100,946,941 12,082,212 2,306,017 115,335 113,633,713 98.52 508,181 114,141,894 98.97 2017 105,199,432 13,077,130 2,014,329 120,291 119,336,199 99.21 386,236 119,722,435 99.53 2018 109,890,834 13,565,677 2,278,284 125,735 123,764,163 98.43 649,161 124,413,324 98.95 2019 116,141,387 14,916,496 2,786,268 133,844 132,157,601 98.74 543,876 132,701,477 99.15 2020 122,120,737 14,809,607 3,366,768 140,297 136,883,021 97.57 745,241 137,628,261 98.10 2021 128,697,400 17,130,950 5,378,795 151,207 144,896,990 95.83 1,443,494 146,340,484 96.78 2022 133,834,626 14,994,674 5,750,554 154,580 145,788,069 94.31 41,485 145,829,554 94.34 2023 143,687,506 17,402,250 3,831,083 164,921 162,101,358 98.29 390,299 162,491,658 98.53 2024 154,545,169 19,839,447 3,823,583 178,208 176,286,166 98.92 423,187 176,709,353 99.16 Average
Collections 98.11 %
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. 223
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
Other
Long Term
Liability
Lease/
SBITA
Liability
Notes
Payable
Capital
Finance
Obligation
Airport
Revenue
Bonds
Sewer
Revenue
Bonds
Water
Revenue
Bonds
Lease
Revenue
Bonds
2015 $ 147,177 $ 161,435 $ 212,247 $ — $ 4,569 $ 10,113 $ 54,590 $ 207,280 $ 147,569 $ 79,908 2016 139,999 153,279 224,449 — 3,813 17,220 53,098 198,436 142,148 75,465 2017 131,840 144,697 246,659 — 3,016 20,884 51,508 189,134 136,569 69,492 2018 124,245 136,021 258,475 — 2,466 28,271 49,825 179,351 130,774 61,242 2019 116,160 126,191 277,457 — 2,033 39,338 83,039 34,943 124,759 55,832 2020 107,555 116,139 327,745 — 1,846 43,121 81,145 6,934 118,501 50,211 2021 98,395 125,464 373,148 — 1,648 41,153 78,383 885 90,241 44,362 2022 88,640 116,162 367,188 6,990 1,440 52,568 75,459 885 90,329 38,269 2023 78,255 105,982 414,241 15,120 — 49,606 52,110 — 90,418 32,266 2024 67,190 97,172 448,467 16,268 — 64,832 140,175 — 90,506 27,461 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 234.
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 2023 & 2024 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. 224
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
Accreted
Interest
Other
LT Liab
Lease
Liability
Notes
Payable
Total
Primary
Government
Percentage
of Personal
Income
Net Debt per
Capita
2015 $ 4,235 $ 61,150 $ — $ 52,080 $ 864,721 2.27 % $ 1,662 2016 4,181 63,051 — 82,795 866,253 2.20 % 1,664
2017 4,090 61,562 — 208,855 955,995 2.56 % 1,818
2018 3,961 59,902 — 364,624 1,076,819 2.74 % 2,000 2019 3,796 61,528 — 403,612 985,907 2.40 % 1,837
2020 3,595 70,058 — 407,096 936,143 2.19 % 1,715
2021 3,355 70,624 — 424,550 908,435 2.00 % 1,661
2022 3,078 53,671 357 425,341 889,095 1.83 % 1,635 2023 2,224 56,715 2,685 406,406 958,169 1.84 % 1,752 2024 2,407 55,383 2,498 391,495 931,796 Not yet available 1,714 225
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
2015 $ 147,177,000 $ — $ 147,177,000 0.49 % 520,159 $ 283 2016 139,998,791 — 139,998,791 0.44 % 520,453 269 2017 131,840,000 — 131,840,000 0.40 % 525,832 251 2018 124,245,000 — 124,245,000 0.36 % 538,330 231 2019 116,160,000 — 116,160,000 0.32 % 536,683 216 2020 107,555,000 — 107,555,000 0.28 % 545,769 197 2021 98,395,000 — 98,395,000 0.24 % 546,770 180
2022 88,640,000 — 88,640,000 0.21 % 543,660 163
2023 78,255,000 — 78,255,000 0.17 % 549,242 142
2024 67,190,000 — 67,190,000 0.14 % 546,971 123
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 220. 226
CITY OF FRESNO, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
As of January 17, 2024
2023-24 Gross Assessed Valuation: $49,289,992,279
Estimated
Percent
Applicable
Debt
Applicable
Combined Direct Debt
City of Fresno Pension Obligation 100% 67,190,000
Lease Revenue Bonds 100% 97,172.349
Capital Finance Obligations 100% 64,802.184
Total Combined Direct Debt 67,351,975
Overlapping Tax, and Assessment Debt
City of Fresno Community Facilities District No. 4 100% $ 620,000 City of Fresno Community Facilities District No. 5 100% 545,000 City of Fresno Community Facilities District No. 7 100% 965,000 State Center Community College District 42.47% 157,319,498 Clovis Unified School District 48.07% 189,730,045
Fresno Unified School District 84.48% 684,025,381
Central Unified School District 81.97% 227,283,033
Other School Districts Various 95,749,031
California Statewide Communities Development Authority Community Facilities District No. 2022-08 100% 3,885,000 Total Overlapping Tax, and Assessment Debt 1,360,121,988 Overlapping General Fund Obligation Debt
Fresno County Pension Obligations 48.07% $ 83,650,800
Fresno County General Fund Obligations 81.97% 9,974,858 Clovis Unified School District Certificates of Participation 23.89% 80,710,223 Fresno Unified School District Certificates of Participation 55.46% 4,557,426 Central Unified School District Certificates of Participation 84.48% 39,850,481 Other School District Certificates of Participation Various 32,134,373 City of Fresno General Fund Obligations 100% 128,196,829 City of Fresno Pension Obligation Bonds 100% 78,255,000 Total Overlapping General Fund Debt 457,329,990
Total Overlapping Tax and Assessment, General Fund and Tax Increment Debt 1,817,451,978 Total Overlapping and Direct Debt $ 1,884,803,953
Ratios to 2023-24 Assessed Valuation:
Combined Direct Debt 0.14%
Overlapping Tax, and Assessment Debt 2.76%
Combined Total Overlapping and Direct Debt 3.82%
Overlapping Tax Increment Debt (Successor Agency) — %
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 finance 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 December 11, 2024. Direct Debt figures are provided by the Finance Department at the City of Fresno and are as of June 30, 2024.. Direct Debt figures are provided by the Finance Department at the City of Fresno and are as of June, 30, 2024 . 227
CITY OF FRESNO, CALIFORNIA
Debt Coverage Ratio - Airports
Last Ten Fiscal Years (in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues (1) (2) $ 21,802 $ 22,976 $ 24,500 $ 25,022 $ 27,308 $ 26,789 $ 33,470 $ 41,093 $ 44,994 $ 51,864 Less Operating Expenses (3) 14,428 14,934 16,117 17,355 18,701 19,962 20,626 21,290 24,165 (26,662) Plus: Other Available Funds (4) 350 359 368 377 386 395 — 416 412 422 Net Revenues 7,724 8,402 8,751 8,044 8,993 7,222 12,844 20,219 21,241 25,624 Adjusted Debt Service
Series 2000 Bonds — —
Series 2013 Bonds (5) 2,805 2,808 2,803 2,801 2,802 2,801 — 2,804 2,700 2,685 Less
Minimum PFC Contribution (6) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) Additional PFC Contribution — (200) — — — — — — — — Net Series 2000/2013 Debt Service 1,205 1,008 1,203 1,201 1,202 1,201 (1,600) 1,204 1,100 1,085 Series 2007 Bonds (5) 1,399 1,437 1,472 1,509 1,544 1,581 — 1,664 1,649 1,688 2019 Bonds (5) 2,141 — 1,959 1,945 1,942
Annual Adjusted Debt Service (7) 2,604 2,445 2,675 2,711 2,746 4,923 — 4,827 4,694 4,715 Annual Adjusted Debt Service Coverage (8) 2.49 2.97 3.44 3.27 2.97 3.27 1.47 N/A 4.53 5.43 Note(s):
(1) FY 2023 Revenues include $5.2 Million of CARES Act monies. The Indenture of Trust defines Federal operating grants as Revenues. (2) 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 associated with the Series 2007 Bonds.
(3) In accordance with 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. (4) The Supplemental Indenture requires a Minimum PFC Contribution of $1.6 million. (5) Debt Service on the 2023 Bonds commenced in fiscal year 2023/24. 228
CITY OF FRESNO, CALIFORNIA
Debt Coverage Ratio - Water System
Last Ten Fiscal Years (in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Charges for Services and Other Operating Revenue $ 74,285 $ 77,959 $ 101,895 $ 107,377 $ 119,029 $ 120,252 $ 127,651 $ 136,479 $ 122,837 $ 124,655 Less: Connection Fee Charges for Services (1,496) (1,563) (1,917) (2,531) (2,138) (2,596) (1,835) (1,643) (1,206) (1,180) Net Charges for Services (1) 72,789 76,396 99,977 104,846 116,892 117,656 125,816 134,836 121,631 123,476 Interest Income 573 1,147 17 (238) 4,974 6,906 (627) (9,267) (343) 13,002 Transfer from Rate Stabilization to Operating Total Revenues $ 73,363 $ 77,543 $ 99,994 $ 104,608 $ 121,866 $ 124,562 $ 125,189 $ 125,570 $ 121,288 $ 136,478 Expenses
Labor and Benefits 11,378 12,437 12,401 12,176 14,581 13,075 15,428 15,232 16,957 16,019 Pumping Power 8,501 8,150 9,064 9,550 8,358 9,419 10,252 11,516 11,508 13,885 Source of Supply 5,613 6,630 4,188 9,751 6,536 9,027 6,531 8,739 9,177 8,987 Transfer To Rate Stabilization — — —
All Other Operating and Maintenance (2) 17,473 17,166 21,547 17,692 35,143 26,148 24,728 30,600 50,862 53,080 Total Operating Expenses (3) $ 42,965 $ 44,382 $ 47,201 $ 49,168 $ 64,617 $ 57,668 $ 56,940 $ 66,087 $ 88,503 $ 91,971 Net Revenue $30,398 $33,162 $52,793 $55,440 $57,249 $66,894 $68,249 $59,483 $32,785 $44,507 Senior Bond Debt Service (4) 1,374 1,381 1,380 1,376 1,379 1,379 — — — — State Loans Debt Service 120 120 — — — — — — — — Total Senior Debt Service 1,494 1,501 1,380 1,376 1,379 1,379 — — — — Senior Coverage Ratio 20.34 22.09 38.25 40.29 41.51 48.52 Not Applicable Not Applicable Not Applicable Not Applicable Net Revenue Available for Parity Debt Service 28,903 31,660 51,413 54,064 55,870 65,515 68,249 59,483 32,785 44,507 2010 Series A Bond Debt Service (5) 12,509 12,531 12,508 12,509 12,504 12,510 7,020 4,085 4,084 4,059 State Loans Debt Service 2,770 2,786 3,533 6,021 10,937 18,562 16,190 16,489 16,489 17,201 Total Parity Debt Service 15,280 15,317 16,041 18,530 23,441 31,072 23,211 20,574 20,574 21,260 Parity Coverage Ratio 1.89 2.07 3.21 2.92 2.38 2.11 2.94 2.89 1.59 2.09 229
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 Fleet Department). (3) 1993 Indenture defines "Maintenance and Operation Costs" as all expenditures 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 FY 2020. (5) Paid off Remaining 2010 Series A-1 Bonds in FY 2021 with surplus cash. 230
CITY OF FRESNO, CALIFORNIA
Debt Coverage Ratio - Sewer System
Last Ten Fiscal Years (in thousands)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Senior Lien Revenues:
Charges for Services (1) $ 81,955 $ 78,186 $ 83,635 $ 81,651 $ 81,085 $ 77,249 $ 77,940 $ 87,795 $ 84,086 $ 89,248 Interest Income 1,787 2,779 492 2,046 5,548 4,702 (720) (7,943) (1,548) 12,020 Less: Wastewater Facility Connection Fee (1,709) (1,844) (1,968) (1,996) (3,290) (2,600) (3,426) (3,393) (2,028) (2,176) Total Senior Lien Revenues $ 82,033 $ 79,121 $ 82,158 $ 81,700 $ 83,343 $ 79,351 $ 73,795 $ 76,460 $ 80,510 $ 100,914 Operating Expenses (2) 37,391 35,935 38,058 37,237 45,835 43,522 44,630 51,088 32,873 55,565 Net Income Before Debt Service 44,642 43,186 44,100 44,464 37,507 35,829 29,165 25,372 47,597 45,349 Senior Lien Debt Service (3) 10,695 10,387 10,712 10,701 10,684 373 6,234 40 905 — Coverage Ratio (4) 4.17 4.16 4.12 4.16 3.51 95.96 4.68 637.08 52.60 — 100% Coverage-Subordinate Lien:
Net Current Revenue after Senior Lien Debt (before Connection Fees) $ 33,947 $ 32,798 $ 33,388 $ 33,763 $ 26,823 $ 35,455 $ 22,931 $ 25,332 $ 46,692 $ 45,349 Available from Senior Lien Revenues $ 33,947 $ 32,798 $ 33,388 $ 33,763 $ 26,823 $ 35,455 $ 22,931 $ 25,332 $ 46,692 $ 45,349 Subordinate Lien Debt Service (5) 7,949 7,949 7,949 7,949 667 2,280 — — — — State Loan Debt Service (6) — — — 1,280 1,286 2,573 1,286 1,286 3,397 3,397 Coverage Ratio 0.004 0.004 0.004 0.004 0.014 0.007 0.018 0.020 0.014 0.013 120% & 125% Coverage Subordinate Lien:
Net Current Revenue (Excluding Connection Fees) $ 33,947 $ 32,798 $ 33,388 $ 33,763 $ 26,823 $ 35,455 $ 22,931 $ 25,332 $ 46,692 $ 45,349 Wastewater Facility Connection Fee 1,709 1,844 1,968 1,996 3,290 2,600 3,426 3,393 2,028 2,176 Transfers From/To Rate Stabilization Fund
Net Current Revenue (Including Connection Fees) $ 35,656 $ 34,642 $ 35,356 $ 35,759 $ 30,113 $ 38,055 $ 26,357 $ 28,725 $ 48,720 $ 47,525 Available From Senior Lien Revenues 35,656 34,642 35,356 35,759 30,113 38,055 26,357 28,725 48,720 47,525 Subordinate Lien Debt Service (5) 7,949 7,949 7,949 7,949 667 2,280 — — — — State Loan Debt Service (6) — — — 1,280 1,286 2,573 1,286 1,286 3,397 3,397 Coverage Ratio 4.49 4.36 4.45 3.87 15.42 7.84 20.49 22.33 14.34 13.99 Net Income After Debt Service (7) $ 27,707 $ 26,694 $ 27,407 $ 27,810 $ 28,160 $ 33,202 $ 25,070 $ 27,438 $ 45,323 $ 44,128 Note(s): (1) Includes revenue paid by the City of Clovis for O&M 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. 231
CITY OF FRESNO, CALIFORNIA
Pledged Revenue Coverage - GASB 44 Methodology
Last Ten Fiscal Years (in thousands)
Fresno Convention Center Revenue Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2015 $ 2,960 $ 3,844 $ (884) $ 2,904 $ 2,469 (0.16)
2016 3,634 4,929 (1,296) 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)
2022 5,744 6,387 (643) 3,784 1,351 (0.13)
2023 4,307 4,760 (453) 3,037 1,148 (0.11)
2024 5,354 6,550 (1,196) 1,726 995 (0.44)
Stadium Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2015 $ 1,248 $ 31 $ 1,217 $ 1,255 $ 2,189 0.35
2016 677 224 454 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
2022 279 426 (147) 1,770 1,422 (0.05)
2023 102 731 (629) 1,870 1,316 (0.20)
2024 585 436 149 1,980 1,203 0.05
Park Bonds
Debt Service
Fiscal
Year
Charges for
Services
Less: Operating
Expenses
Net Available
Revenue Principal Interest Coverage
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 38 286 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
2022 630 170 460 55 71 3.65
2023 687 265 422 60 68 3.29
2024 685 100 585 65 65 4.48
Note(s) Operating Expenses do not include interest, amortization or depreciation expenses.
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. 232
CITY OF FRESNO, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in Thousands)
Legal Debt Limit Calculation for
Fiscal Year 2024
Assessed Value $ 49,289,992
Debt Limit (20% of assessed
value, pursuant to City Charter) 9,857,998
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 $ 9,857,998
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
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
2022 8,476,049 — 8,476,049 0.00
2023 9,148,790 — 9,148,790 0.00
2024 9,857,998 — 9,857,998 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. 233
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
2015 520,159 $ 37,359,815,000 $ 38,323 10.20% 114.20
2016 520,453 39,295,335,000 40,101 9.50% 114.34
2017 525,832 41,024,000,000 41,470 8.48% 114.67
2018 538,330 42,842,800,000 43,084 7.50% 115.21
2019 536,683 45,445,944,000 45,487 7.30% 116.48
2020 545,769 48,539,267,000 48,495 12.12% 116.48
2021 546,770 52,363,942,000 51,692 12.13% 116.93
2022 543,660 51,316,407,000 50,549 5.60% 116.93
2023 549,242 53,633,038,000 52,728 7.00% 116.93
2024 546,971 Not yet available Not yet available 8.10% 117.18 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). 2023-2024 Personal Income and Per Capita Income data is not yet available from the BEA.
The 2024 Unemployment Rate is the average of estimates for the first 8 months of calendar year 2024 as provided by EDD as of October 2024.
The 2024 Population is as of 11/27/2024.
234
CITY OF FRESNO, CALIFORNIA
Principal Employers
Current Year and Nine Years Ago
2024 2015
Employer
Employees Rank
Percent of
Total City
Employment
Employees Rank
Percent of Total
City
Employment
Fresno Unified School District 13,669 1 3.18% — — —
Community Medical Centers 9,750 2 2.26% 4,789 1 1.23%
County of Fresno 8,980 3 2.09% — — —%
Amazon 3,900 4 0.91% — — —
California State University, Fresno 5,233 5 1.22% 1,562 5 0.40 City of Fresno 5,015 6 1.16% 2,938 2 0.75%
State Center Community College District 4,367 7 1.01% 1,178 6 0.30% Internal Revenue Service 4,230 8 0.98% — — —%
Saint Agnes Medical Center 3,075 9 0.71% 2,400 3 0.62%
Foster Farms 3,009 10 0.70% — — —%
Kaiser Permanente Medical Center — — — 2,000 4 0.51%
Fresno Economic Opportunities
Commission — — — 973 7 0.25%
Ameriguard Security Services, Inc. — — — 567 8 0.15%
Guarantee Real Estate — — — 544 9 0.14%
Geil Enterprises — — — 500 10 0.13%
Total 61,228 14.22% 17,451 4.48%
Fresno City Employment 430,500 389,400
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): FY2024 employer information provided by the Fresno County Economic Development Corporation (EDC) and represents private and public sector full-time employees.
FY2024 employer information estimated to be within the City of Fresno.
The Employer Information for the Internal Revenue Service includes employees from all Fresno offices FY2024 Fresno City Employment figures are for June 2024 as currently available from the California EDD for Fresno (MSA).
FY2024 Fresno City Employment figures for Amazon, Internal Revenue Service and Saint Agnes Medical Center are from FY2022. 235
CITY OF FRESNO, CALIFORNIA
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government
Management 79.50 80.25 85.25 96.84 101.50 189.00 199.00 226.25 262.65 265.25 Finance 58.00 58.75 60.75 54.75 55.00 118.00 116.00 115.75 116.00 117.00 General Services — — — — — — — 143.75 146.00
Other 95.00 96.25 103.50 106.00 112.00 117.00 121.00 130.00 204.00 229.20 Enterprise Functions
Transportation
Airports
Sworn 15.00 15.00 19.00 19.00 19.00 19.00 19.00 21.00 24.00 25.00 Civilian 72.00 72.00 77.35 80.05 82.00 85.65 99.40 95.40 109.65 115.15 FAX Department 422.00 435.50 492.25 508.00 515.50 533.00 534.00 541.00 492.00 508.00 Public Utilities 634.75 640.50 643.80 643.80 646.80 587.75 589.00 613.50 608.55 621.05 Economic Growth and Expansion
Development and Resource
Management Department 174.60 184.60 204.80 218.70 — — — — — — Planning and Development — — — — — — — — — —
Economic Development — — — — — — — — 8.00 8.00 Planning and Development Services 0.00 0.00 0.00 0.00 218.20 138.70 141.20 161.35 196.40 206.15 Public Works 292.75 288.75 305.25 315.25 339.50 356.75 358.00 392.50 407.25 453.25 Culture and Recreation
Parks, Recreation and Community
Services 66.00 71.00 73.50 75.00 75.75 76.00 88.00 72.00 132.50 159.00 Public Protection
Police
Sworn 717.00 775.00 804.00 830.00 835.00 835.00 838.00 850.00 888.00 900.00 Civilian 278.80 244.56 274.65 270.34 273.75 292.00 297.60 316.90 367.50 397.50 Fire
Sworn 310.00 314.00 334.00 334.00 334.00 302.00 305.00 347.00 371.00 375.00 Civilian 46.75 45.00 42.91 47.75 42.50 43.50 45.30 48.50 47.92 53.00 Total $ 3,262.15 $ 3,321.16 $ 3,521.01 $ 3,599.48 $ 3,650.50 $ 3,693.35 $ 3,750.50 $ 3,931.15 $ 4,379.17 $ 4,578.55 Source(s): City of Fresno Budget Management & Studies Division - Adopted Budgets, Authorized Positions.
Note(s): (1) Figures for Full-time Equivalents (FTE's) include Permanent and Permanent Part-Time employees only. (2)
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.
(3)
Total permanent positions for each fiscal year are represented as of the following dates: FY2011 as of May 2011; FY2012 as of May 2012; FY2014 as of June 2013; FY2015 as of September 2014; FY2016 as of September 2015; FY2017 as of June 2017; FY2018 as of June 2018; FY2019 as of June 2019, and FY20 as of June 2020.
(4) In FY2011 Planning and Development became the Development and Resource Management Department (DARM). (5) In FY2012 the Downtown & Community Revitalization Department was consolidated into the DARM Department. (6) In FY2012 the General Services Department (GSD) was dissolved and its operating divisions were merged into the Finance, Public Works and Transportation/ FAX Departments.
(7) In FY2012 effective December 1, 2011, Commercial Solid Waste Operations were franchised. 109 authorized positions in the Public Utilities Department were deleted by City Council Resolution, effective July 3, 2012. (8) In FY2017 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. (9) In FY2017 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. (10) In FY2018 the Budget and Management Studies Division was relocated from Finance to the City Manager's Office. (11) In FY2019, Development and Resource Management Department (DARM) became Planning & Development Services (12) In FY2023 Economic Development was established as its own department. 236
CITY OF FRESNO, CALIFORNIA
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government
Building Permits Issued
Commercial 1,878 1,641 1,948 1,876 1,688 1,731 1,387 1,322 1,774 1,561 Residential 9,084 8,313 11,227 10,998 7,770 9,753 9,045 9,458 10,796 13,217 Police
Physical Arrests 43,729 37,816 26,893 27,920 28,337 20,885 18,006 10,939 12,341 18,854 Traffic Violations (citations issued) 44,954 58,927 58,927 39,488 57,691 43,992 21,769 22,892 28,174 31,653 Calls Received for Police Service 950,099 1,026,458 950,099 1,013,411 924,016 920,020 905,206 1,256,230 1,178,900 409,219 Fire
Emergency Medical Service Calls 20,191 19,174 21,773 21,430 32,071 27,964 21,640 25,487 25,034 25,367 Fire Incidents 16,326 18,257 16,702 16,830 25,194 14,906 19,352 22,281 21,765 23,716 Fire Inspections 9,780 12,581 13,292 12,679 12,747 13,692 11,329 14,871 16,124 18,603 Fire Hydrant Inspections 26,811 17,025 17,000 17,252 17,252 17,381 17,859 17,004 17,266 17,345 Wastewater Treatment
Average Daily Sewage Treatment
(million gallons per day) 57.20 55.90 56.90 57.10 56.20 56.10 58.00 57.38 57.66 54.88 Wastewater Treatment Capacity (million
gallons per day) 80.00 80.00 80.00 80.00 91.50 91.50 91.50 94.50 91.50 91.50 Solid Waste
Refuse Collected (tons per day) 504.83 623.00 650.41 648.00 661.55 650.00 750.00 750.41 729.90 728.09 Recyclables Collected (tons per day) 116.87 154.00 155.99 153.77 156.26 159.00 179.00 179.55 169.00 163.28 Green Waste Collected (tons per day) 275.16 348.00 358.10 353.14 365.27 366.00 368.00 358.72 353.00 355.67 Other Public Works
Street Resurfacing (miles) 16.58 18.62 16.81 15.10 28.30 13.78 91.44 13.13 64.05 97.18 Parking Violations (citations issued) 49,326 47,531 53,760 54,865 45,407 34,514 16,524 29,251 25,751 29,388 Parks and Recreation
Athletic Field Permits Issued 5,921 6,949 8,332 5,392 6,795 5,182 556 2,967 6,886 6,371 Memorial Auditorium User Groups 16 27 18 13 23 8 1 8 8 12 Memorial Auditorium, Audience 21,000 45,900 18,900 16,500 19,500 10,800 1,106 5,225 3,350 4,955 Senior Hot Meal Participants (All Sites) 38,103 45,070 44,686 47,605 46,604 29,007 — — 165 22,700 Meals Served (Not Senior Hot Meals) — — 32,328 40,830 26,879 22,878 — — 3 — Picnic Shelter/Table Reservations
(Roeding & Woodward) 2,194 2,457 2,053 1,907 1,841 2,438 21 4,838 1,186 1,148 Average Daily Attendance (Neighborhood
Parks with Centers) — 1,653 1,732 1,976 2,083 1,656 357 20 16 21 237
CITY OF FRESNO, CALIFORNIA
Operating Indicators by Function/Program
Last Ten Fiscal Years (Continued)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Convention Center
Event Days 297 209 313 300 296 170 — 155 235 271 Gross Ticket Sales $ 5,594,470 $ 7,272,305 $ 8,049,133 $ 6,741,116 $ 12,048,880 $ 3,792,771 $ — $ 8,537,274.09 $ 6,818,629.34 $ 12,215,526 Attendance 428,086 455,491 455,587 417,918 478,541 278,299 — 234,718 251,265 330,281 Water
Number On-Service Accounts 133,163 134,381 135,448 136,408 137,251 138,332 140,140 141,196 142,569 143,263 Main/Service Leaks Repaired 558 378 408 663 737 776 842 541 940 798 Average Daily Per Capita Consumption (gallons) 208.00 182.60 198.00 207.60 189.30 196.77 203.00 197.83 185.70 188.20 Peak Daily Consumption (MGD - Million Gallons per
Day) 187.36 169.88 180.60 183.42 156.91 170.01 174.20 172.44 199.20 167.00 Transportation
Number of Commercial Airlines 9 8 8 8 8 8 9 9 8 8
Number of Cargo Carriers 3 3 3 3 3 3 3 2 2 2
Total Number Tenant Aircraft 408 320 303 277 301 287 287 287 287 286 Annual Fuel Consumption (gallons) 9,548,919 10,541,916 10,592,430 8,698,431 2,648,061 2,002,465 2,247,020 2,549,932 2,380,532 2,299,992 Origin and Destination Passengers
Domestic 1,252,962 1,292,784 1,328,929 1,423,248 1,621,990 1,298,554 1,094,020 1,907,434 1,945,419 2,231,783 International 153,244 182,225 208,947 212,075 235,667 207,037 200,785 302,571 320,566 365,171 Origin and Destination Mail (lbs.) — 316 17,818 9,362 12,649 — — — 5,822 209 Origin and Destination Freight (lbs.) 25,843,389 24,546,856 19,873,695 20,965,016 22,399,354 34,921,956 33,956,904 34,348,311 27,125,646 21,627,362 Fresno Area Express (FAX)
Actual Route Miles 4,157,174 4,175,783 4,208,890 4,337,684 4,649,397 4,701,969 4,693,498 4,788,756 4,833,345 5,361,880 Passengers 11,364,431 10,672,577 9,622,874 9,750,800 10,551,665 9,058,367 5,604,780 6,985,740 8,184,510 9,606,251 Mini-Buses - Purchased Transportation 50 58 63 69 56 48 43 40 38 42 238
Source(s): City of Fresno - Various Departments
Note(s): (1) Building Permits Issued includes individual units and structures and is a composite of new construction, additions, alterations, repairs and relocations. (2) Police department figures are based on calendar year and are as of January 1 of reported year. FY2020 physical arrest figures are reported as of September 2019. (3) 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. (4) Fire inspection figures reflect only those performed in the City of Fresno and excludes service calls for neighboring fire districts. (5) Fire hydrant inspections decreased in FY2016 because of an inspection schedule change. Beginning in FY2016, fire hydrant inspections are scheduled for annual inspections instead of bi-annual inspections. (6) The FY2016 Mini bus figure includes 8 sedans as is consistent with National Transit Database (NTD) reporting. (7) The FY2019 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.
(8) The FY2019 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. (9) The FY2020 & FY2021 reduction in parking violations was related to relaxed enforcement due to COVID-19. (10) The FY2021 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. (11) The FY2021 reduction of Parks & Recreation operations was due to the shuttering of facilities due to COVID-19. (12) The FY2021 increase in street resurfacing miles was due to the inclusion of Street Paving, Slurry & Construction Management miles. (13) The FY2021 decrease of Convention Center operations was due to the reduction of events hosted in response to COVID-19. (14) The FY2021 decrease in Police traffic violations was due to less people on the roads in response to COVID-19 (15) The FY2022 increase of Convention Center operations was due to the increase of events hosted. (16) The FY2023 for Athletic Field Permits Issued includes Tennis (17) The FY2023 Meals and Senior Hot Meals increased as they were not served in FY2022 due to the Covid Pandemic (18) The FY2023 paratransit statistics are not included in the Revenue Miles (Actual Route Miles) or Number of Passengers categories listed within this table. (19) T h e F Y 2 0 2 3 i n c r e a s e i n f i x e d r o u t e p a s s e n g e r s i s d u e t o t h e r e m o v a l o f C O V I D - 1 9 r e l a t e d r e s t r i c t i o n s . (20) The FY2023 decrease in both directly operated fixed route buses and paratransit cutaways are due to lifecycle retirements. The Department has funding available to replenish the lost vehicles in succeeding fiscal years, h o w e v e r , C O V I D - 1 9 s t a f f i n g i n c o n s i s t e n c i e s h a v e l e d t o p r o c u r e m e n t d e l a y s . (21) Information was not available for all years for all categories. 239
CITY OF FRESNO, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Police Department
Stations 4 4 5 5 5 5 5 5 5 5
Patrol Bureaus 4 4 5 5 5 5 5 5 5 5
Vehicular Patrol Units 257 276 334 360 356 390 388 435 470 506 Plain Cars (No specialty vehicles) 175 173 198 197 200 228 239 64 218 273 Motorcycles 85 72 70 74 70 66 74 57 69 80
Helicopters 2 2 2 2 2 2 2 2 2 2
Fixed Wing Aircraft 1 1 1 1 — — — — — —
Fire Department
Fire Stations 20 20 20 20 20 20 20 20 20 20
Squad Companies — — — — — — — 3 3 4
Engine Companies 18 18 17 17 18 18 18 18 18 18
Truck Companies 4 4 5 5 5 5 5 5 5 5
Public Works
Streets (miles) 1,672 1,500 1,511 1,692 1,700 1,714 1,721 1,721 1,721 1,737 Street Lights 42,051 42,207 42,405 43,318 43,450 43,570 43,811 44,048 44,297 45,101 Traffic Signals 489 467 468 481 488 486 488 493 503 554 Solid Waste Division
Collection Trucks 84 89 81 85 86 86 88 88 84 84
Water Division
Water Mains (miles) 1,799 1,801 1,809 1,827 1,859 1,870.86 1,880 1,889.04 1,897 1,909 Wells 260 261 260 263 262 262 264 271 271 202
Fire Hydrants 13,170 13,218 13,332 13,484 13,536 13,638 13,717 13,784 13,865 14,004 Sewer Maintenance Division
Sewer Mainlines (miles) 1,533 1,536 1,539 1,613 1,558 1,628.1 1,579 1,593.03 1,597.3 1,604.71 Manholes 23,776 22,834 23,947 24,146 24,359 25,546 25,546 25,046 25,238 25,398 Lift Stations 15 15 15 15 14 16 16 17 16 16
Parks
Metropolitan Parks (Regional) 3 3 3 3 3 3 3 3 3 3
Neighborhood Parks 32 33 34 34 34 34 34 34 47 47
Pocket Parks 21 21 21 21 21 21 21 21 18 18
Zoo 1 1 1 1 1 1 1 1 1 1
Golf Courses 2 2 2 2 2 2 2 2 1 1
Community Parks 1 1 1 1 1 1 1 1 10 10
Skate Parks 6 8 8 8 8 8 8 8 8 8
Tennis Courts 40 42 42 42 42 42 42 42 42 42
Acres of Parks 1,384 1,392 1,393 1,393 1,393 1,393 1,393 1,393 1,288 1,288 Neighborhood Centers 12 12 12 12 12 12 12 12 12 12
Community Center 5 5 5 7 7 7 7 7 7 7
Swimming Pools 9 9 9 9 8 8 8 8 8 8
240
CITY OF FRESNO, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years (continued)
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Transportation
Airports 2 2 2 2 2 2 2 2 2 2
Municipal Airport Total Acreage 1,875 1,875 1,875 2,050 2,050 2,050 2,050 2,050 2,050 2,050 Length of Longest Runway (surfaced) -
Linear Feet 9,539 9,539 9,539 9,539 13,165 13,165 13,165 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) 2,365 2,355 2,664 2,664 2,664 2,812 3,074 4,038 4,031 3,883 Air Cargo Ramp Spaces 9 8 8 9 9 9 8 8 8 8
Air Cargo Ramp (surface square
footage) 806,390 806,390 806,390 806,390 806,390 806,390 806,390 806,309 806,309 806,309 Number of Hangars 302 303 303 303 303 303 303 303 303 303 Buses - Directly Operated 105 105 129 138 102 100 102 105 103 109 Source(s): City of Fresno - Various Departments
Note(s): (1) Information combined for Fresno Yosemite International (FYI) and Chandler Executive Airport (FCH). (2) The FY2016 reduction in Street(miles) is due to the non-inclusion of secondary segments on the major divided roads and is not associated with any road removal. (3) The 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. (4) Three acres were added due to the opening of Martin Ray Reilly Park in FY2015. 8.3 acres were added in FY2016 due to the opening of Inspiration Park. (5) In FY2020, Airports added stalls to a designated area not previously used for parking. This increased the number of stalls and had no affect on acreage. (6) In FY2022 there was a significant increase in the number of parking stalls at the airport due to completion of the new parking garage on the current parking lot location. Parking stalls no longer designated Hourly/Daily.
They are now Daily/Economy.
(7) FY2023 Street Resurfacing increase as there was no contract in place for FY2022. (8) FY2023 Lift Stations decreased to 16 as DPU erroneously reported 17 in FY2022. (9) FY2023 Golf Courses decreased as Palm Lakes is no longer utilized for golf. (10) Information not available for all years for all categories. 241
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