GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 5-5-25 Page 1 of 3 “Our purpose is to continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, and meaningful objectives.” The Public is encouraged to attend and participate in person. Comments from the public on agenda items will be accepted until 4 pm on May 5th, 2024, via email to [email protected] or via the payment/document drop box at Gridley City Hall and will be conveyed to the Council for consideration.
You may view using the following link, ID, and passcode:
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CALL TO ORDER - Mayor Farr
ROLL CALL
PLEDGE OF ALLEGIANCE – Vice Mayor Johnson
PROCLAMATION – None
INTRODUCTION OF NEW OR PROMOTED EMPLOYEES - None
COMMUNITY PARTICIPATION FORUM - Members of the public may address the City Council on matters not listed on the agenda. The City Council may not discuss nor take action on any community participation item brought forward by a member of the community. Comments are requested to be limited to three (3) minutes.
CONSENT AGENDA
1. City Council Minutes
City Council review and approval of special meeting minutes for the April 21, 2025 Recommended Action(s):
a. Approve special Council meeting minutes: April 21, 2025 Gridley City Council – Regular Meeting Agenda
Monday, May 5, 2025; 6:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 5-5-25 Page 2 of 3
ITEMS FOR CONSIDERATION
2. Fiscal Year 2023/2024 Audit
The City Council to review and approve the FY 23/24 financial statements and independent auditors report.
Recommended Action(s):
a. Accept and approve the FY 23/24 Financial Statements. b. Accept and approve the FY 23/24 independent auditors report.
3. State Route 99 – Waterline Relocation Project
City Council to consider authorizing City Administrator to accept the construction contract 24-01 for the construction of Gridley State Route 99 Waterline Relocation project and issue the notice of completion.
Recommended Action(s):
a. Authorize the City Administrator to accept the construction contract for the Waterline Relocation Project
b. Authorize City Administrator to issue the notice of completion and record at the Butte County Recorders office
4. 2025 Butte County Community Wildfire Protection Plan City Council to receive presentation explaining the document and consider adoption of the 2025 Butte County Community Wildfire
Recommended Action(s):
a. Adopt the 2025 Butte County Community Wildfire Protection Plan and authorize the Mayor to sign the signatory page
5. Washington Street Parking Spaces Painting
City Council to consider authorizing Public Works Department to convert parking on the south side of Washington Street to diagonal parking to increase overall number of available parking
Recommended Action(s):
a. Provide direction to Public Works Department regarding the painting of parking spaces on Washington Street, between Norman Street and the southern end leading into the baseball field parking area
GRIDLEY CITY COUNCIL AGENDA: Regular Meeting of 5-5-25 Page 3 of 3 COUNCIL COMMITTEE REPORTS - Brief reports on conferences, seminars, and meetings attended by the Mayor and City Council members, if any.
CITY ADMINISTRATOR REPORTS - Brief updates and reports on conferences, seminars, and meetings attended by the City Administrator, if any.
DEPARTMENT UPDATE REPORTS – Brief updates and reports on City services as it pertains to each department, if any.
POTENTIAL FUTURE CITY COUNCIL ITEMS - (Appearing on the Agenda within 30 days):
Travel Policy 5/19/2025
Energy Efficiency Contract Review 5/19/2025
Hazel Hotel – CHIP Homes 5/19/2025
CLOSED SESSION – None
ADJOURNMENT – adjourning to a regular meeting on May 19, 2025 NOTE 1: POSTING OF AGENDA- This agenda was posted on the public bulletin board at City Hall at or before 6:00 p.m., May 2nd, 2025. This agenda along with all attachments is available for public viewing online at www.gridley.ca.us and at the Administration Counter in City Hall, 685 Kentucky Street, Gridley, CA.
NOTE 2: REGARDING UNSCHEDULED MATTERS – In accordance with state law, it shall be the policy of this Council that no action shall be taken on any item presented during the public forum or on unscheduled matters unless the Council, by majority vote, determines that an emergency situation exists, or, unless the Council by a two-thirds vote finds that the need to take action arose subsequent to the posting of this agenda.
GRIDLEY CITY COUNCIL MINUTES: Joint Study Session - Special Meeting 4-21-2025 Page 1 of 1 “Our purpose isto continuously enhance our community’s vitality and overall quality of life. We are committed to providing high quality, cost-effective municipal services and forming productive partnerships with our residents and regional organizations. We collectively develop, share, and are guided by a clear vision, values, andmeaningful objectives.”
CALL TO ORDER
Mayor Farr called the meeting to order at 5:00 pm.
Present: Johnson, Roberts, Calderon, Sanchez, Farr, Wolfe, Holland, Adams
Absent: None
Arriving after roll call: Espino
Staff Present: Elisa Arteaga, City Administrator
Todd Farr, Police Chief
Anthony Galyean, City Attorney
Martin Pineda, Finance Director
Patricia Taverner, Assistant Finance Director
Ross Pippitt, Utility Director
Christopher Smith, Principal Planner
Carmen Santana, Recording Clerk
JOINT STUDY SESSION
Planning 101 Presentation and Introduction
(Presented by Principal Planner Christopher Smith)
Recommended Action(s):
a. Planning Commission and City Council to receive presentation as foundational training for both Council and Commission members b. City Council and Planning Commission members are encouraged to provide feedback on the Planning 101 presentation and to communicate directly with Principal Planner Christopher Smith regarding any specific topics they would like to see revisited or explored in greater detail at a future Planning Commission or City Council meeting
City of Gridley – Minutes
City Council & Planning Commission Joint Study Session
Monday, August 21, 2025; 5:00 pm
Gridley City Hall, 685 Kentucky Street, Gridley, CA 95948 GRIDLEY CITY COUNCIL MINUTES: Joint Study Session - Special Meeting 4-21-2025 Page 1 of 1 City Administrator Elisa Arteaga introduced Principal Planner Christopher Smith.
Principal Planner Smith provided a comprehensive presentation outlining the role of a City Planner, including collaboration with City staff, the Planning Commission, and the City Council. He discussed the procedures involved in project review and emphasized the importance of key planning documents such as the General Plan and the Housing Element, which guide development within the city.
Smith explained that the Planner’s responsibilities include working with both developers and homeowners, supporting a wide range of projects—from large-scale developments to smaller residential improvements. He noted that he will serve as a resource to the public, helping ensure that applicants understand, in advance, the requirements applicable to their proposed projects.
Councilmember Sanchez expressed interest in establishing a policy or incorporating language into the development review process to ensure that new projects meet a consistent standard and aesthetic. She emphasized the importance of maintaining Gridley’s curb appeal and ensuring that future developments align with the community’s desired visual character.
Planning Commissioner Ken Wolfe raised the topic of development impact fees and suggested that the City Council consider exploring another reduction of these fees as a means to encourage and promote future development.
City Administrator Arteaga responded to Wolfes’s statement about developmental impact fees, emphasizing their critical role in supporting city infrastructure. She explained that these fees contribute to the improvement of roads, enhancement of parks, and overall maintenance of public infrastructure. Administrator Arteaga informed the Council and Planning Commission that she intends to address this matter through a nexus fee study, ensuring that any adjustments to the fee structure are data-driven and not made without thorough analysis.
Following brief concluding remarks from Council and Planning Commission, Mayor Farr closed the study session.
CLOSED SESSION – None
ADJOURNMENT
With no further items left to discuss, City Council adjourned to the regular meeting scheduled for April 21, 2025, at 6:00 pm.
__________________________________
Elisa Arteaga, City Clerk
City Council Agenda Item #2
Staff Report
Date: May 5, 2025
To: Mayor and City Council
From: Martin Pineda, Finance Director
Subject: Request for Acceptance and Approval of FY 23-24 Audit Recommendation
Staff respectfully request that the Mayor and City Council accept the attached FY 23-24 Financial Statements & Independent Auditors Report.
Background
The Finance Department has received the financial audit for FY 23-24 and has reviewed the findings and recommendations made by our independent auditors. Finance staff concurs with findings and recommendations. Corrective efforts have been reviewed by Finance Management and some measures have been implemented. New and existing policies are being implemented/updated to comply with standard practices. Those will be presented to the council as we assess and update each policy for approval. The Finance Department Staff will continue to bring Council for future consideration, new amended policies and procedures that will address and correct repeat findings.
The Finance Department, along with our auditors, have worked very hard to complete it and get the City caught up. This audit is the last audit and, if approved, the city will have no more audits, until next FY.
Below is a list of audits and dates of completion for reference:
• FY 19-20 TDA Audit – Finalized April 2021
• FY 20-21 TDA Audit – Finalized May 2022
• FY 19-20 City-wide audit – Finalized September 2022
• FY 20-21 City-wide audit – Finalized January 2024
• FY 21-22 City-wide audit – Finalized May 2024
• FY 21-22 TDA Audit – Finalized June 2024
• FY 22-23 City-wide audit – Finalized July 2024
• FY 22-23 TDA Audit – Finalized February 2025
• FY 23-24 TDA Audit – Finalized April 2025
• TDA Triannual Audit – Finalized April 2025
• FY 23-24 City-wide Audit – Finalized May 2025 (Current) The city’s independent Auditor, Sheldon Chavan from Chavan & Associates LLP will provide a verbal overview of the FY 23-24 financial audit reports.
Compliance with City Council Strategic Plan or Budget Goals The City Council and City staff are committed to providing the best possible financial practices and the highest possible transparency regarding all financial transactions.
Attachments: 2023-24 City Gridley AFR_C&ALLP.pdf
x Regular
Special
Closed
Emergency
CITY OF GRIDLEY
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
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CITY OF GRIDLEY
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................... 1 Management’s Discussion and Analysis .......................................................................................... 7 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................. 24 Statement of Activities ...................................................................................................... 26
Fund Financial Statements
Governmental Funds:
Balance Sheet .............................................................................................................. 28 Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position .................................. 29 Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ........................................................................................... 31
Proprietary Funds:
Statement of Net Position ............................................................................................ 34 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................... 35 Statement of Cash Flows .............................................................................................. 36 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ............................................................................. 38 Statement of Changes in Fiduciary Net Position ........................................................... 39
Notes to the Basic Financial Statements ................................................................................. 42
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):
General Fund .................................................................................................................... 79 08-HOME-4987 Grant Fund .............................................................................................. 80 Block Grant Funds ............................................................................................................ 81 Grant-Related Funds ......................................................................................................... 82 Notes to Required Supplementary Information – Budgetary Accounting and Control ..................... 83 Schedule of Pension Contributions................................................................................................ 84 Schedule of Proportionate Share of Net Pension Liability .............................................................. 85 Schedule of Changes in Total OPEB Liability ............................................................................... 86
CITY OF GRIDLEY
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds:
Combining Balance Sheet ....................................................................................................... 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................... 96 Nonmajor Enterprise Funds:
Combing Statement of Net Position ....................................................................................... 102 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................... 103 Combining Statement of Cash Flows ..................................................................................... 104 Private Purpose Trust Funds:
Combining Statement of Fiduciary Net Position .................................................................... 106 Combining Statement of Changes in Fiduciary Net Position ................................................... 107 Custodial Funds:
Combining Statement of Fiduciary Net Position .................................................................... 110 Combining Statement of Changes in Fiduciary Net Position ................................................... 111 General Fund:
Combining Balance Sheet ..................................................................................................... 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 115
FINANCIAL SECTION
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16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Gridley
Gridley, California
Report on the Financial Statements
Opinion
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Gridley (the “City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Gridley, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements City management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and GAGAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements, schedules, and other information listed in the supplementary information section of the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 28, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Chavan & Associates, LLP
Certified Public Accountants
April 28, 2025
Morgan Hill, California
MANAGEMENT’S DISCUSSION
AND ANALYSIS
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City of Gridley Management’s Discussion and Analysis
INTRODUCTION
As management of the City of Gridley, California (city), we offer readers of the City’s financial statements this narrative overview and analysis of financial activities of the City of Gridley, for the fiscal year that ended on June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the other sections of the attached audited financial statements, required supplemental information and other supplemental information.
The required components of the report are listed below.
Required Components of the Annual Financial Report
FISCAL YEAR 2023/24 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
The assets and deferred outflows of resources for the City of Gridley exceeded the liabilities and deferred inflows of resources at the close of the fiscal year by $39.29 million (net position). Of the net position, $20.85 million was classified as net investment in capital assets; $5.49 million recorded as restricted funds; and $12.95 million categorized as unrestricted net position. The City’s net position decreased by $2.06 million. This included a $11,048 increase in the net position of Governmental Activities and a $2.067 million decrease in the net position of Business-Type Activities.
City revenues decreased by $1.96 million, or 9.98%, when compared to the prior fiscal year. This decrease is primarily related to a decrease in charges for services of $2.46 million from business-type activities, which was offset by an increase in operating grants and contributions of $217,121. Total expenses increased by $5.45 million, or 37.91%, with a $1.52 million increase in public safety, a $494,668 increase in community development, and a $3.12 million increase in business-type program expenses.
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
City of Gridley Management’s Discussion and Analysis
Deferred outflows of resources decreased by $240,205, while deferred inflows of resources decreased by $325,569. This was primarily related to pension liability adjustments estimated in the City’s actuarial reports, which include differences between expected and actual earnings; expected and actual experiences; and changes in proportional allocations. The City’s net pension liability as of June 30, 2024 was $14.63 million versus $13.96 million in the prior fiscal year, while the total OPEB liability for the fiscal year ending June 30, 2024 was $3.30 million versus $3.98 million in the prior fiscal year. The City’s long-term debt decreased by $95,054, or 3.13%, in Fiscal Year 2023/24 primarily from debt service payments made during the year.
The City’s net capital assets increased by $244,371, or 1.04%, primarily as a result of additions in excess of depreciation expense.
Fund Highlights
At the close of Fiscal Year 2023/24 the City’s Governmental Funds reported a combined fund balance of $11.8 million, which is a decrease of $1.7 million in comparison with the prior year. Approximately
8.21%, or $969,108, was classified as unassigned fund balance and is available for spending. At the end of the current fiscal year, the General Fund’s unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $7.87 million, or 112.95%, of total general fund expenditures, prior to transfers. The General Fund’s unassigned fund balance was $2.71 million, or 38.96%, of total general fund expenditures, prior to transfers. The General Fund’s fund balance decreased by $4.94 million at the close of the fiscal year. This included an excess of operating expenditures over revenues of $2.69 million, before an additional $2.45 million in net transfers out.
General Fund revenues increased from prior year by $22,063 and expenditures increased from prior year by $685,574.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements are comprised of (1) Government-Wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information intended to furnish additional detail to support the basic financial statements themselves.
Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. Government-Wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Government-Wide Financial Statements consist of the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents financial information on all of the City’s assets, liabilities, and deferred City of Gridley Management’s Discussion and Analysis
inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s 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 for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes; and earned but unused vacation leave).
Both of the Government-Wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental 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). An overview of the City’s functions associated with each classification is listed below.
Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public safety, streets and public works, community development, and parks and recreation. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees.
Business-Type Activities – The City’s enterprise activitiesinclude electric, water, sewer, drainage, solid waste, and senior taxi services. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.
The Government-Wide Financial Statements include not only the City itself (known as the primary government), but also a legally separate financing authority which the City is financially accountable. The City of Gridley Public Facilities Financing Authority (Financing Authority) is legally separate from the City but is blended with the primary government because it has the same governing board as the City and because of its financial relationship with the City. Separate financial statements are not issued for the Financing Authority.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. Major funds are presented individually, with all non-major funds summarized and presented only in a single column. Other Supplementary information includes subordinate schedules that present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City's activities. All of the City's funds can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable City of Gridley Management’s Discussion and Analysis
resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements. Such information may be useful in evaluating the City's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful 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 fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, 08-Home-4987 Grant Fund, Block Grant Fund, and Grant Related Funds, which are major funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Other Supplementary Information section of this report.
The City adopts an annual budget for its General Fund and Special Revenue Funds. A budgetary comparison statement has been provided for the General Fund and Major Special Revenue Funds to demonstrate compliance with this budget.
Proprietary Funds
The City has six Enterprise Funds that are a proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide statements.
Proprietary funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for include electric, water, sewer, drainage, solid waste, and senior taxi services. The electric, water and sewer funds are major enterprise funds for the City.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the Government-Wide Financial Statements because the resources of these funds are not available to support the City’s own programs. The accounting for fiduciary funds is much like that used for business-type activities. The City maintains private purpose trust funds and custodial funds to report activities that are fiduciary in nature.
City of Gridley Management’s Discussion and Analysis
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is necessary to acquire a full understanding of the data provided in the Government-Wide and Fund Financial Statements.
REQUIRED SUPPLEMENTARY INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s progress in funding its obligations to provide pension and Other Post Employment Benefit (OPEB) benefits to its employees.
SUPPLEMENTARY INFORMATION
The combining statements referred to earlier in connection with nonmajor governmental funds, are presented in the other supplementary information section, immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $41.35 million at the close of Fiscal Year 2023/24. This is an increase of $5.21 million over the prior fiscal year.
The following table summarizes the City’s ending net position:
A significant portion, or $20.85 million, of the City's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), net of accumulated depreciation and less any outstanding debt that was used to acquire or construct those assets. Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the City‘s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this 2024 2023 2024 2023 2024 2023
Assets
Current and other assets $ 25,325,234 $ 26,830,005 $ 10,061,412 $ 11,170,960 $ 35,386,646 $ 38,000,965 Capital assets 10,761,126 10,784,112 13,029,009 12,761,652 23,790,135 23,545,764 Total Assets $ 36,086,360 $ 37,614,117 $ 23,090,421 $ 23,932,612 $ 59,176,781 $ 61,546,729 Deferred Outflows of Resources $ 3,487,408 $ 3,587,722 $ 2,495,820 $ 2,635,711 $ 5,983,228 $ 6,223,433 Liabilities
Current and other liabilities $ 2,150,078 $ 2,318,817 $ 681,819 $ 640,705 $ 2,831,897 $ 2,959,522 Noncurrent liabilities 10,600,997 10,908,781 10,550,485 10,344,150 21,151,482 21,252,931 Total Liabilities $ 12,751,075 $ 13,227,598 $ 11,232,304 $ 10,984,855 $ 23,983,379 $ 24,212,453 Deferred Inflows of Resources $ 1,008,818 $ 2,171,414 $ 873,501 $ 36,474 $ 1,882,319 $ 2,207,888 Net Position
Net investment in capital assets $ 10,761,126 $ 10,784,112 $ 10,090,009 $ 9,727,598 $ 20,851,135 $ 20,511,710 Restricted 5,490,730 5,310,275 - - 5,490,730 5,310,275
Unrestricted 9,562,019 9,708,440 3,390,427 5,819,396 12,952,446 15,527,836 Total Net Position $ 25,813,875 $ 25,802,827 $ 13,480,436 $ 15,546,994 $ 39,294,311 $ 41,349,821 Table 1 - Net Position
Governmental Activities Business-Type Activities Total
City of Gridley Management’s Discussion and Analysis
debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities.
The $5.49 million classified as Restricted Net Position, represents resources that are subject to external restrictions, by external creditors, grantors, contributors, or laws or regulations of other governments, on how they may be used. Complete details of each fund can be found in the fund descriptions.
The remaining balance of $12.95 million is classified as unrestricted.
At the end of Fiscal Year 2023/24, the City reported a positive balance for the government as a whole.
The reasons for the overall financial changes are discussed in the following sections for governmental and business-type activities.
Governmental and Business-Type Activities
As shown in the Statement of Changes in Net Position schedule, the net position for Governmental Activities decreased by $87,504 during Fiscal Year 2023/24. This decrease is largely due to an increase in pension expense caused by differences from estimates versus actual results.
The net position for business-type activities decreased by $2.09 million during Fiscal Year 2023/24. This decrease was mostly due a decrease in Charges for Services of $2.46 million and an increase to operating expenses of $3.12 million, mostly due to changes in estimates from employee benefit plans. An analysis of the changes in revenues and expenses by type of significant events follows:
Increase Increase Increase
Functions/Programs 2024 2023 (Decrease) 2024 2023 (Decrease) 2024 2023 (Decrease) Program Revenues
Charges for services $ 520,289 $ 611,883 $ (91,594) $ 10,632,804 $ 13,089,323 $ (2,456,519) $ 11,153,093 $ 13,701,206 $ (2,548,113) Operating grants and contributions 1,959,392 2,265,638 (306,246) 304,555 87,434 217,121 2,263,947 2,353,072 (89,125) Total Program Revenues 2,479,681 2,877,521 (397,840) 10,937,359 13,176,757 (2,239,398) 13,417,040 16,054,278 (2,637,238) General Revenues
Taxes 3,052,187 3,087,539 (35,352) - - - 3,052,187 3,087,539 (35,352) Rental income 153,357 30,592 122,765 - - - 153,357 30,592 122,765 Investment earnings 229,050 100,277 128,773 143,931 53,057 90,874 372,981 153,334 219,647 Other revenues 659,257 274,474 384,783 3,693 15,294 (11,601) 662,950 289,768 373,182 Loss on disposal of capital assets - (19,198) 19,198 - - - - - - Transfers 1,089,502 1,395,944 (306,442) (1,089,502) (1,395,944) 306,442 - - - Total General Revenues 5,183,353 4,869,628 313,725 (941,878) (1,327,593) 385,715 4,241,475 3,561,233 680,242 Expenses
General government 282,187 224,089 58,098 - - - 282,187 224,089 58,098 Public safety 4,850,572 3,335,114 1,515,458 - - - 4,850,572 3,335,114 1,515,458 Streets and public works 1,272,254 1,132,256 139,998 - - - 1,272,254 1,132,256 139,998 Community development 853,798 359,130 494,668 - - - 853,798 359,130 494,668 Parks and recreation 491,727 369,367 122,360 - - - 491,727 369,367 122,360 Electric - - - 7,494,671 6,843,213 651,458 7,494,671 6,843,213 651,458 Water - - - 1,454,505 782,138 672,367 1,454,505 782,138 672,367 Sewer - - - 2,807,162 1,334,078 1,473,084 2,807,162 1,334,078 1,473,084 Other proprietary - - - 334,084 6,991 327,093 334,084 6,991 327,093 Total Expenses 7,750,538 5,419,956 2,330,582 12,090,422 8,966,420 3,124,002 19,840,960 14,386,376 5,454,584 Increase / (Decrease) in Net Position (87,504) 2,327,193 (2,414,697) (2,094,941) 2,882,744 (4,977,685) (2,182,445) 5,229,135 (7,411,580) Prior Period Adjustments 98,552 - 98,552 28,383 - 28,383 126,935 - 126,935 Net Position, Beginning of Year 25,802,827 23,475,634 2,327,193 15,546,994 12,664,250 2,882,744 41,349,821 36,139,884 5,209,937 Net Position, End of Year $ 25,813,875 $ 25,802,827 $ 11,048 $ 13,480,436 $ 15,546,994 $ (2,066,558) $ 39,294,311 $ 41,369,019 $ (2,074,708) Table 2 - Statement of Changes in Net Position
Governmental Activities Business-Type Activities Totals City of Gridley Management’s Discussion and Analysis
Governmental Activities
Governmental Revenues
The following chart summarizes the changes in revenues by category during Fiscal Year 2023/24:
Significant changes in governmental revenues consisted of the following:
Charges for Services in governmental activities decreased by $91,594 mostly from less revenue received from Impact Fees and Recreation Revenue. Although Plan Review fees were greater than the previous fiscal year, there was still a decrease.
In Fiscal Year 2023/24, operating grants and contributions decreased by $306,246. The decrease was mainly due to one-time grants received from federal, state and county agencies in the prior fiscal year. Taxes decreased by $35,352, mostly because the city received less Sales and Use Taxes compared to the previous fiscal year.
Rental Income increased by $122,765 mostly due to a one-time correction to rental income for the FEMA payments.
Investment earnings increased by $128,773 which reflects the rise in interest rates and changes in fair value.
Other revenue increased by $384,783 due to the recognition of deferred grants. Transfers decreased by $306,442, mostly due to the transfer of GHG carbon credits that were posted to the Electric Fund and now being tracked in its own Fund.
City of Gridley Management’s Discussion and Analysis
Governmental Expenses
The Fiscal Year 2023/24 expenses for Governmental Activities decreased by $2.43 million as illustrated in the chart below:
Significant changes in governmental expenses consisted of the following:
Overall governmental expenses increased by $2.33 million mostly from increases to public safety and community development services. Public safety expenses increased by $1.52 million mostly due to the increase of salaries and benefits for public safety employees. Community development expenses increased by $494,668 mostly because of the CDBG loan payments for Sunrise Village Senior Housing. The changes in program expenses are a part of the presentation of financial statements on a governmentwide perspective, whereby expenditures are allocated to departments related to adjustments for actuarial pension reports and depreciation. Additional allocations or conversion entries are needed to convert fund statements to a government-wide perspective City of Gridley Management’s Discussion and Analysis
Business-Type Activities
The City’s net position for business-type activities decreased by $2.07 million. The following chart is a summary of the changes in revenues and expenses for the City’s business-type activities from Fiscal Year 2023/24 to 2022/23, with additional analysis following the chart:
Total Program Revenues for business-type activities decreased by $2.46 million when compared to the prior fiscal year. $1.28 million of this amount was a one-time settlement payment from NCPA to the electric fund. The remaining amount was an increased amount in utility billing, with the majority coming from the Electric fund.
Total General Revenues increased by $385,715 because of increased investment earnings and transfers out decreased by $306,442 related to the transfer of GHG carbon credits that were posted to the Electric Fund and now being tracked in its own Fund in the prior year.
Total expenses for business type activities increased by $3.12 million when compared to the prior fiscal year. This was primarily due to employee salary and benefits increase to include GASB 68 costs.
City of Gridley Management’s Discussion and Analysis
FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.
In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City ’s Council.
The following summarizes the fund balances by major and nonmajor funds:
Total Fund Balance as of June 30, 2024 was $11.8 million. Of this amount, $969,108, or 8.21%, was unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance was either nonspendable, restricted, committed, or assigned to indicate that it was (1) not in a spendable form, $141,286; (2) restricted for particular purposes, $5.54 million; (3) committed by Council resolution for a specific purpose, $41,510; or (3) assigned for particular purposes, $5.11 million.
A summary of the changes in fund balance of the Major Funds and Nonmajor Governmental Funds is presented below:
As of June 30, 2024, the City’s governmental funds reported combined fund balances of $11.8 million, a decrease of $1.7 million when compared with the prior fiscal year. 08-Home-4987 Block Grant Nonmajor
General Grant Grant Related Governmental
Fund Fund Fund Funds Funds Total
Nonspendable $ 141,286 $ - $ - $ - $ - $ 141,286
Restricted - 3,885 616,998 2,090,300 2,824,869 5,536,052 Committed 41,510 - - - - 41,510
Assigned 5,113,277 - - - - 5,113,277
Unassigned 2,714,345 - - - (1,745,237) 969,108
Total Fund Balance $ 8,010,418 $ 3,885 $ 616,998 $ 2,090,300 $ 1,079,632 $ 11,801,233 Table 3 - Summary of Fund Balances - Governmental Funds 08-Home-4987 Block Grant Nonmajor
General Grant Grant Related Governmental
Fund Fund Fund Funds Funds Total
Total Revenues $ 4,273,013 $ 75 $ 204,248 $ 709,509 $ 963,665 $ 6,150,510 Total Expenditures 6,966,687 - 487,571 339,061 1,241,837 9,035,156 Revenues Over (Under) Expenditures (2,693,674) 75 (283,323) 370,448 (278,172) (2,884,646) Transfers in 1,476,517 - - 354,462 3,725,308 5,556,287
Transfers out (3,930,222) - (149,548) (346,485) (40,530) (4,466,785) Net change in fund balances (5,147,379) 75 (432,871) 378,425 3,406,606 (1,795,144) Beginning of year 12,947,169 3,810 1,049,869 1,712,452 (2,215,475) 13,497,825 Prior Period Adjustment 210,628 - - (577) (111,499) 98,552 End of year $ 8,010,418 $ 3,885 $ 616,998 $ 2,090,300 $ 1,079,632 $ 11,801,233 Table 4 - Summary of Changes in Fund Balance - Governmental Funds City of Gridley Management’s Discussion and Analysis
Analysis of Individual Funds
The General Fund is the chief operating fund of the City. As of the end of Fiscal Year 2023/24, the unassigned fund balance of the general fund was $2.71 million, while total fund balance decreased to $8.01 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents 38.96% of total general fund expenditures, while total fund balance represents 114.98% of total general fund expenditures.
The General Fund’s fund balance decreased by $4.94 million for Fiscal Year 2023/24. This is primarily attributed to $3.93 million in transfers into nonmajor funds, which included $1.6 million to the Planning and Development Fund and $1.9 million to the Recreation Related Fund. In addition, operating expenditures exceeded operating revenues by $2.69 million during fiscal year 2023/24.
The 08-Home-4987 Fund’s fund balance increased by $75 during the year. This fund is reported as major because of the loans reported in that fund totaling $5.55 million at year end.
The Bock Grant Fund’s fund balance decreased by $42,871 during the year as expenditures exceeded revenues by this amount during the year.
The Grant Related Funds fund balance increased by $377,848 during the year as revenues exceeded expenditures by $370,448.
Nonmajor Governmental Fund’s fund balances increased by $3.3 million mainly due to transfers from the General Fund totaling $3.93 million.
GENERAL FUND BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information section along with a comparison to actual activity for the fiscal year ended.
Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council.
Revenues
The General Fund adopted and final revenue budgets were $4.96 million with actual revenues at $4.27 million. The overall budgetary difference of $686,819 primarily reflects other revenue that was less than expected by $914,310. Originally, the General Fund Sports Complex reimbursement of $1.015 million was going to be recorded in the General Fund, but a separate fund was created for this revenue.
Expenditures
The General Fund adopted and final expenditure budget was $8.99 million. The actual expenditures totaled $6.97 million, which resulted in a net difference from the final budget of $2.03 million. This budgetary variance was mostly attributable to lower-than-expected capital outlay and general government costs.
City of Gridley Management’s Discussion and Analysis
CAPITAL ASSETS
The City of Gridley’s investment in capital assets for its governmental and business-type activities as of June 30, 2024, was $23.8 million (net of accumulated depreciation). This includes net capital assets from governmental activities of $10.76 million and net capital assets from business-type activities of $13.03 million. This investment in capital assets includes land, buildings and improvements, machinery and equipment, infrastructure and sewer systems.
The following table summarizes the City’s capital assets at the end of the fiscal year:
The total increase in the City’s capital assets, net of depreciation and disposals was $244,371. In Governmental Activities, the net decrease in capital assets was $22,986, or .21%, while business-type activities capital assets increased by $267,357, or 2.1%. These changes were mainly attributed to additions in excess of depreciation.
Additional detail and information on capital asset activity is included in the notes to the financial statements, Note 6.
DEBT ADMINISTRATION
At the end of the fiscal year, the City had total debt outstanding of $3.03 million which was all reported in business-type activities.
The following table summarizes the City’s debt at the end of the fiscal year:
During the fiscal year, long-term debt decreased by $95,054. The reduction in Long-Term Debt was a result of debt service payments. Additional detail and information on long-term debt activity is included in the notes to the financial statements, Note 7.
2024 2023 2024 2023 2024 2023 % Change
Land - non-depreciable $ 1,150,990 $ 1,142,779 $ 921,793 $ 921,793 $ 2,072,783 $ 2,064,572 0.40% Construction in Progress - non-depreciable 673,373 345,812 941,151 644,242 1,614,524 990,054 63.07% Infrastructure 3,416,714 3,686,180 3,301,074 3,463,139 6,717,788 7,149,319 -6.04% Buildings and Improvements 871,548 984,269 166,392 183,491 1,037,940 1,167,760 -11.12% Improvements other than Buildings 3,219,110 3,069,319 4,929,439 5,375,367 8,148,549 8,444,686 -3.51% Vehicle and Equipment 1,429,391 1,555,753 2,769,160 2,172,501 4,198,551 3,728,254 12.61% Right of Use Assets - - - 1,119 - 1,119 -100.00%
Total Capital Assets, Net $ 10,761,126 $ 10,784,112 $ 13,029,009 $ 12,761,652 $ 23,790,135 $ 23,545,764 1.04% Table 5 - Capital Assets at Year End - Net
Governmental Activities Business-type Activities Total
2024 2023 % Change
USDA Rural Development Loan $ 865,000 $ 903,000 -4.21%
USDA Rural Development Loan 2,074,000 2,130,000 -2.63%
Lease Liability - 1,054 -100.00%
Total outstanding long-term debt $ 2,939,000 $ 3,034,054 -3.13% Table 6 - Outstanding Long-Term Debt at Year End
Business-type Activities
City of Gridley Management’s Discussion and Analysis
ECONOMIC FACTORS
Summary
The City’s primary revenue sources include property taxes, sales and use taxes, and Franchise Tax Fee and Stage Coach Trailer Tax. Property tax revenue is projected to grow as the City anticipates more housing to be built.
The City’s General Fund revenue for FY 2023-2024 was $4.27 million, the projection for FY 2024-2025 is $6.17 million. The increase is mainly due to property taxes, sales tax, and the state trailer coach tax. As we expect more housing, franchise fee revenue is expected to increase as well. We will monitor these fees and review the impact. The City and the third party, UFS, completed the rate study and presented to the public and City Council. The City Council voted to increase Electric, Water, and Sewer in 2024 and 2025.
While the approaching fiscal year reflects increased revenue receipts, the economic outlook assumes the leveling off of sales and use taxes to anticipate only a conservative 3% growth over prior year revenues as consumers shift from goods to services.
Planned expenditures also increased in the upcoming fiscal year. City staffing levels increased to 63.5 fulltime equivalents (FTE) in fiscal year 2023-2024. The cost of staffing increases from $9.5 million to $9.8 million due to a combination of factors such as negotiated salary and benefit adjustments, personnel advancement (annual merit or salary step adjustments), rising retirement and health insurance costs and additional staff. Personnel costs steadily increased, approaching over $10 million by fiscal year 2025-2026, without any additional increase in FTE beyond the fiscal year 2024-2025 staffing levels.
However, even without an increase in staffing levels, the City faces rising personnel costs primarily attributed to pension-related expenses. In addition to its annual contributions toward retirement costs for existing employees, the City makes an annual required payment to the California Public Employees’ Retirement System (CalPERS) for the City’s unfunded accrued liability (“UAL”). The UAL payment for FY 2023-2024 was $654K. FY 2024-2025 UAL payment is project to be roughly $1.25 million. The City has a plan in place to pay additional payments in an effort to reduce the liability payment in future years. There are options to this such as Section 115 Trust or adjustments of the Amortization Schedule. Finance staff has prepared a report and presented its findings to the public and Gridley City Council.
If the City Council elects to start funding a Section 115 trust, it will have to plan and continually fund the trust while maintaining an annual balanced budget. To achieve this, the revenues must sustain an annual growth over the next several years and controlling the citywide expenses, particularly regarding the salary and benefits and capital outlay. Inflation also affects the ability to reduce costs for staffing, services, and supplies.
Outlook for Major Revenues
Property Taxes
The City’s land capacity for new housing is limited, which curtails the availability of housing stock. The rising cost of housing as well as the loan rates, creates a volatility in the housing market. This limited supply, coupled with a high demand for housing driven by the City’s desirability as a place to live, contributes to a healthy real estate market and thus the stability and strength of property tax revenues.
City of Gridley Management’s Discussion and Analysis
Unlike sales tax and franchise fees, the fiscal year 2024-2025 budget assumed minimal growth in property tax and continued resiliency.
The State median home price averaged over $832K in 2024, setting a 6% increase from prior year. The California median home sales price for 2025 is expected to rise 13%. Gridley has consistent property tax base and the City does not foresee the average home in Gridley to be as high as the California Median home price. While fiscal year 2024-2025 property tax revenue is on par with projections, annual growth of 3% is conservatively realistic. The financial forecast assumes 3% annual growth over the next several years.
Sales and Use Taxes
Many of the features that contribute to residential quality of life, such as a temperate climate, natural beauty, and various family friendly events also attract visitors. The unique restaurants and other shopping options located within the City, as well as grocery and clothing retailers contributes to shopping opportunities for residents and visitors alike. The City also hosts the yearly Butte County Fair at the end of August, this also attracts visitors from surrounding cities and is a popular attraction. 2024-2025 budget projects a $1.6 million, which is slightly higher change when comparing to FY 2023- 2024 actuals. Inflation is a major factor, recent trends show inflation has cooled in FY 2024-2025 while financing costs are expected to begin a gradual decent in the second half of 2024. The City will be closely monitoring this and adjust budgeted amounts during a Mid-Year Budget review if needed.
Franchise Fees
The City currently gets Franchise Fees Revenues from vendors that provide a service that the City does not provide, but is essential for our residents. This includes Waste/Environmental Services, Cable/Internet Services, and Gas Services. These services play a vital role in the quality of life for our residents and it benefits the City as a source of revenue. There was a projected minimal increase of 3% for FY 2024-2025.
The City will collect revenue from the fees which are collected from the vendor providing the services. As the pandemic has subsided and new housing expected in Gridley, the City should see an increase in revenue.
Outlook for Major Expenditures
Salaries and Benefits
The City’s largest expenditure is related to the cost of personnel. City staffing levels increased to 63 fulltime equivalents (FTE) in fiscal year 2023-2024. Correspondingly, the cost of staffing increases from $9.5 million to $11.4 million due to a combination of factors such as negotiated salary and benefit adjustments, step increases, rising retirement and health care costs and additional staff. Personnel costs steadily increase, approaching $12 million by fiscal year 2025-2026, with additional increases in FTE beyond fiscal year 2024-2025 staffing levels. The City will also be entering into Union Negotiations towards the end of FY 2024-2025, which will have an impact on the budget personnel and benefits cost.
City of Gridley Management’s Discussion and Analysis
Pension Costs
The City provides a defined pension plan through the California Public Employees’ Retirement System (CalPERS) for its full-time employees. As such, the City is responsible for contributing toward current employees’ retirement packages based upon a set amount determined by CalPERS based upon a percentage of salary (“employer contribution”). The employer contribution is included within the City’s overall budgeted salary and benefit costs. In addition, the City is obligated to make additional pension payments to CalPERS known as the Unfunded Accrued Lability (“UAL”). The UAL addresses any shortfall between the funding CalPERS needs to pay for retirement benefits when employees retire; compared to the funding that CalPERS currently has on hand to pay for the estimated costs of these benefits.
The City’s UAL is estimated at $14.7 million (not including interest) based on the valuation date of June 30, 2023. As calculated by CalPERS, the City’s UAL annual contribution payment has been steadily increasing and projected to increase by $1.7 million by year 2034. The City anticipates annual contribution costs will continue to rise over the next several years even if staffing levels remain unchanged. To help address its pension obligations, the City has a plan in place in efforts to reduce the liability.
Other Operating Costs
In order to deliver services to the community, the City procures various types of goods and services. The category of services and supplies assumes a modest annual growth in fiscal year 2024-2025, as the City adjusts for goods and services overall sensitivity to inflation. The City is hopeful that federal interest rates will ease in 2025 and inflation will slow. The City contracts for specialized professional services and costs trend upward based upon credentials, certifications and qualifications of the individuals providing the service. Moreover, the City currently contracts with another governmental agency for fire prevention and response services, subject to increases based upon salary and benefits, including pension. Overall costs across all sectors are significantly higher over prior fiscal years.
Capital Projects
The City capital expenditures budgeted is $5.01 million in fiscal year 2024-2025. The City’s Five-Year Capital Improvement Plan totals $32.5 million and identifies needs of $6.5 million annually over the next five fiscal years. Similar to service and supplies, inflation and other market-based conditions drive the availability of contractors and costs to implement public works projects, subject to prevailing wage. In addition, deferring building and infrastructure maintenance drives long-term costs for repair and replacement.
Debt Service
In FY 2022, the City worked with a third party vendor and successfully refinanced two bonds. The City was able to refinance at a lower interest rate which in turn will be an interest cost savings to the City. Prior to the dissolution of the Redevelopment Agency (“RDA”), the former agency issued a $2.9 million and $1.7 million bond for the purpose of providing funds to finance redevelopment projects.
City of Gridley Management’s Discussion and Analysis
REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City's finances for all of the City's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Gridley Finance Department at 685 Kentucky St., Gridley, CA 95948, or visit the City of Gridley webpage at www.gridley.ca.us.
BASIC FINANCIAL STATEMENTS
City of Gridley
Statement of Net Position
June 30, 2024
BusinessGovernmental Type
Activities Activities Total
ASSETS
Current Assets:
Cash and investments $ 12,416,849 $ 7,873,093 $ 20,289,942 Accounts receivable 95,069 881,194 976,263
Due from other governments 450,039 116,780 566,819
Interest receivable 29,879 22,616 52,495
Taxes receivable 412,927 - 412,927
Prepaid items 57,768 45,078 102,846
Inventory - 1,207,357 1,207,357
Advances to fiduciary funds 326,868 - 326,868
Leases receivable 25,300 - 25,300
Internal balances 84,706 (84,706) -
Total Current Assets 13,899,405 10,061,412 23,960,817
Noncurrent Assets:
Loans receivable 11,123,798 - 11,123,798
Leases receivable 302,031 - 302,031
Capital Assets:
Nondepreciable 1,824,363 1,862,944 3,687,307
Depreciable, net of accumulated depreciation 8,936,763 11,166,065 20,102,828 Total Capital Assets, Net 10,761,126 13,029,009 23,790,135 Total Noncurrent Assets 22,186,955 13,029,009 35,215,964 Total Assets $ 36,086,360 $ 23,090,421 $ 59,176,781
DEFERRED OUTFLOWS OF RESOURCES
Pension Adjustments $ 3,487,408 $ 2,495,820 $ 5,983,228 Total Deferred Outflows of Resources $ 3,487,408 $ 2,495,820 $ 5,983,228 Continued
The accompanying notes are an integral part of these financial statements.
City of Gridley
Statement of Net Position
June 30, 2024
BusinessGovernmental Type
Activities Activities Total
LIABILITIES
Current Liabilities:
Accounts payable $ 476,874 $ 129,709 $ 606,583
Accrued expenses - 54,187 54,187
Unearned revenue 1,405,022 - 1,405,022
Deposits payable 56,850 268,267 325,117
Interest payable - 22,333 22,333
Compensated absences, due within one year 211,332 110,323 321,655 Long-term debt, due within one year - 97,000 97,000
Total Current Liabilities 2,150,078 681,819 2,831,897
Noncurrent Liabilities:
Total OPEB liability 1,878,637 1,417,217 3,295,854
Net pension liability 8,486,091 6,147,330 14,633,421
Compensated absences, due in more than one year 236,269 143,938 380,207 Long-term debt, due in more than one year - 2,842,000 2,842,000 Total Noncurrent Liabilities 10,600,997 10,550,485 21,151,482 Total Liabilities $ 12,751,075 $ 11,232,304 $ 23,983,379
DEFERRED INFLOWS OF RESOURCES
Leases $ 320,681 $ - $ 320,681
Pension Adjustments 498,341 730,322 1,228,663
OPEB Adjustments 189,796 143,179 332,975
Total Deferred Inflows of Resources $ 1,008,818 $ 873,501 $ 1,882,319
NET POSITION
Net investment in capital assets $ 10,761,126 $ 10,090,009 $ 20,851,135 Restricted for:
Redevelopment 1,212,757 - 1,212,757
Grants 3,189,681 - 3,189,681
Taxes and fees 1,086,582 - 1,086,582
Capital projects - - -
Other 1,710 - 1,710
Total Restricted 5,490,730 - 5,490,730
Unrestricted 9,562,019 3,390,427 12,952,446
Total Net Position $ 25,813,875 $ 13,480,436 $ 39,294,311 Concluded
The accompanying notes are an integral part of these financial statements.
City of Gridley
Statement of Activities
For the Year Ended June 30, 2024
Operating BusinessCharges for Grants and Governmental Type Functions/Programs Expenses Services Contributions Activities Activities Total Primary Government:
Governmental Activities:
General government $ 282,187 $ 290,110 $ 225,566 $ 233,489 $ 233,489 Public safety 4,850,572 28,746 438,441 (4,383,385) (4,383,385) Streets and public works 1,272,254 - 1,154,165 (118,089) (118,089) Community development 853,798 179,107 141,220 (533,471) (533,471) Parks and recreation 491,727 22,326 - (469,401) (469,401) Total Governmental Activities $ 7,750,538 $ 520,289 $ 1,959,392 (5,270,857) (5,270,857) Business-Type Activities:
Electric $ 7,494,671 $ 8,017,743 $ - 523,072 523,072
Water 1,454,505 1,151,881 - (302,624) (302,624)
Sewer 2,807,162 1,460,038 - (1,347,124) (1,347,124)
Other proprietary 334,084 3,142 304,555 (26,387) (26,387) Total Business-Type Activities $ 12,090,422 $10,632,804 $ 304,555 (1,153,063) (1,153,063) General Revenues:
Taxes:
Property taxes 635,438 - 635,438
Sales and use taxes 1,708,830 - 1,708,830
Motor vehicle and gas taxes 390,783 - 390,783
Occupancy tax 23,642 - 23,642
Franchise taxes 152,660 - 152,660
Other taxes 140,834 - 140,834
Total taxes 3,052,187 - 3,052,187
Investment earnings 229,050 143,931 372,981
Rental income 153,357 - 153,357
Other revenues 659,257 3,693 662,950
Total General Revenues 4,093,851 147,624 4,241,475
Transfers 1,089,502 (1,089,502) -
Total General Revenues and Transfers 5,183,353 (941,878) 4,241,475 Change in Net Position (87,504) (2,094,941) (2,182,445) Net Position - Beginning of Year 25,802,827 15,546,994 41,349,821 Prior Period Adjustments 98,552 28,383 126,935
Net Position - Beginning, as Adjusted 25,901,379 15,575,377 41,476,756 Net Position - End of Year $ 25,813,875 $ 13,480,436 $ 39,294,311 The accompanying notes are an integral part of these financial statements.
Net (Expense) Revenue and Changes
Program Revenues in Net Position
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.
The 08-Home-4987 Grant Fund is a special revenue fund used to account for the activities of the U.S.
Department of Housing and Urban Development HOME Investment Partnerships Grant.
The Block Grant Fund is a Community Development Block Grant (CDBG) Revolving Loan program and Economic Development Block Grant (EDBG) Program. The City participates in this federally funded program that is utilized to fund housing activities, community facilities and public service projects serving lower income private parties and businesses. Eligible activities include funding housing activities (single/multi-family) rehabilitation, rental housing acquisition, homeownership assistance, or new construction. Interest may vary depending on the loan terms and interest may be deferred until the related property is refinanced or sold. The repayment of the loans results in program income, which is deposited into the Housing Rehabilitation Revolving Loan Fund (RLF) program for public benefit projects, general administration, and program delivery functions (preapproved ratios to the funds loaned).
The Grant Related Fund is used to account for various restricted grants, mostly from the State of California (transportation, planning, and COPS grants).
City of Gridley
Balance Sheet
Governmental Funds
June 30, 2024
08-Home-4987 Block Grant Nonmajor Total
General Grant Grant Related Governmental Governmental
Fund Fund Fund Funds Funds Funds
ASSETS
Cash and investments $ 5,575,866 $ 3,873 $ 428,760 $ 3,444,462 $ 2,963,888 $ 12,416,849 Accounts receivable 87,298 - 954 - 6,817 95,069
Due from other governments - - 77,826 29,040 343,173 450,039 Interest receivable 16,848 12 1,338 2,042 9,639 29,879
Taxes receivable 386,842 - - - 26,085 412,927
Loans receivable - 5,546,250 2,868,163 2,709,385 - 11,123,798 Due from other funds 2,353,627 - - - 329,517 2,683,144
Prepaid items 57,768 - - - - 57,768
Leases receivable 327,331 - - - - 327,331
Advances to fiduciary funds 76,868 - 250,000 - - 326,868 Total assets $ 8,882,448 $ 5,550,135 $ 3,627,041 $ 6,184,929 $ 3,679,119 $ 27,923,672
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ 470,398 $ - $ 1,104 $ 4,323 $ 1,049 $ 476,874 Unearned revenue 24,101 - - - - 24,101
Deposits payable 56,850 - - - - 56,850
Due to other funds - - - - 2,598,438 2,598,438
Total liabilities 551,349 - 1,104 4,323 2,599,487 3,156,263 Deferred Inflows of Resources:
Leases 320,681 - - - - 320,681
Unavailable revenues - 5,546,250 3,008,939 4,090,306 - 12,645,495 Total deferred inflows of resources 320,681 5,546,250 3,008,939 4,090,306 - 12,966,176 Fund Balances:
Nonspendable
Leases receivable 6,650 - - - - 6,650
Advances to fiduciary funds 76,868 - - - - 76,868
Prepaid items 57,768 - - - - 57,768
Total nonspendable 141,286 - - - - 141,286
Restricted:
Redevelopment - - - - 1,212,757 1,212,757
Grants - 3,885 616,998 2,090,300 478,498 3,189,681
Taxes and fees - - - - 1,086,582 1,086,582
Community development - - - - 45,322 45,322
Other - - - - 1,710 1,710
Total restricted - 3,885 616,998 2,090,300 2,824,869 5,536,052 Committed:
Infrastructure reserve 41,510 - - - - 41,510
Total committed 41,510 - - - - 41,510
Assigned:
Bond reserve 3,217,538 - - - - 3,217,538
Equipment replacement 1,805,481 - - - - 1,805,481
Building maintenance 90,258 - - - - 90,258
Total assigned 5,113,277 - - - - 5,113,277
Unassigned 2,714,345 - - - (1,745,237) 969,108
Total fund balances 8,010,418 3,885 616,998 2,090,300 1,079,632 11,801,233 Total liabilities, deferred inflows of
resources and fund balances $ 8,882,448 $ 5,550,135 $ 3,627,041 $ 6,184,929 $ 3,679,119 $ 27,923,672 The accompanying notes are an integral part of these financial statements.
City of Gridley
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 11,801,233 Amounts reported for governmental activities in the statement of net position were different because:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:
Capital assets 24,349,251
Less: accumulated depreciation (13,588,125)
Total Capital Assets 10,761,126
The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. 2,799,271 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as deferred inflows of resources in the fund statements.
The unavailable amounts offset loans receivable in the fund statements. 11,264,574 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:
Compensated absences (447,601)
Net pension liability (8,486,091)
Total OPEB liability (1,878,637)
Total Long-Term Obligations (10,812,329)
Net Position of Governmental Activities $ 25,813,875
The accompanying notes are an integral part of these financial statements.
City of Gridley
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
08-Home-4987 Block Grant Nonmajor Total
General Grant Grant Related Governmental Governmental
Fund Fund Fund Funds Funds Funds
REVENUES
Taxes and assessments $ 3,283,264 $ - $ - $ - $ 660,667 $ 3,943,931 Licenses, permits and fees 209,920 - - - 26,501 236,421 Fines and forfeitures 10,525 - - - 28,747 39,272
Intergovernmental 220,474 - - 697,380 127,889 1,045,743 Charges for services 63,780 - - - 1,710 65,490
Program income - - 169,422 - - 169,422
Use of money and property 271,865 75 34,826 12,129 63,512 382,407 Other revenue 213,185 - - - 54,639 267,824
Total Revenues 4,273,013 75 204,248 709,509 963,665 6,150,510
EXPENDITURES
Current:
General government 214,850 - - 18,083 - 232,933
Public safety 5,456,407 - - 45,694 - 5,502,101
Streets and public works 432,079 - - - 608,893 1,040,972 Community development 65,189 - 487,571 55,688 398,117 1,006,565 Parks and recreation 141,244 - - 44,233 229,008 414,485 Capital outlay 656,918 - - 175,363 5,819 838,100
Total Expenditures 6,966,687 - 487,571 339,061 1,241,837 9,035,156 Excess (Deficiency) of
Revenues over Expenditures (2,693,674) 75 (283,323) 370,448 (278,172) (2,884,646)
OTHER FINANCING SOURCES (USES)
Transfers in 1,476,517 - - 354,462 3,725,308 5,556,287
Transfers out (3,930,222) - (149,548) (346,485) (40,530) (4,466,785) Total Other Financing Sources (Uses) (2,453,705) - (149,548) 7,977 3,684,778 1,089,502 Net Change in Fund Balances (5,147,379) 75 (432,871) 378,425 3,406,606 (1,795,144) Fund Balances Beginning 12,947,169 3,810 1,049,869 1,712,452 (2,215,475) 13,497,825 Prior Period Adjustments 210,628 - - (577) (111,499) 98,552 Fund Balances Beginning, as Adjusted 13,157,797 3,810 1,049,869 1,711,875 (2,326,974) 13,596,377 Fund Balances Ending $ 8,010,418 $ 3,885 $ 616,998 $ 2,090,300 $ 1,079,632 $ 11,801,233 The accompanying notes are an integral part of these financial statements.
City of Gridley
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the Year Ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds $ (1,795,144) Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense.
Capital asset additions 774,562
Depreciation expense (797,548)
Compensated absences not required to be paid with current financial resources are not reported in the governmental funds, but are accrued as noncurrent liabilities in the Government Wide Statement Net Position. The change from prior year accrued compensated absences is reported in the applicable program expense. (29,363)
Receipts of payments and disbursements of funds related to notes and loans receivable are reported as revenue and expenditures, respectively, in governmental funds, but an increase and decrease, respectively, in notes receivable in the Statement of Net Position.
Loan program receipts 389,032
Loans made during the year 33,990
In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. 1,286,896
Certain expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund statements as follows:
Other postemployment benefits 50,071
Change in Net Position of Governmental Activities $ (87,504) The accompanying notes are an integral part of these financial statements.
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PROPRIETARY FUND FINANCIAL STATEMENTS
The Electric Fund is used to account for the activities of the City's electric generation and distribution operations.
The Water Fund is used to account for the activities of the City's water treatment and distribution operations.
The Sewer Fund is used to account for the activities of the City's sewage collection and treatment operations.
Nonmajor enterprise funds include the Drainage Fund, Solid Waste Fund and Senior Taxi Fund.
City of Gridley
Statement of Net Position
Proprietary Funds
June 30, 2024
Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
ASSETS
Current assets:
Cash and investments $ 1,241,685 $ 2,603,462 $ 3,903,457 $ 124,489 $ 7,873,093 Accounts receivable, net 641,072 97,465 142,657 - 881,194 Due from other governments 26,346 - - 90,434 116,780
Interest receivable 4,304 6,942 10,974 396 22,616
Due from other funds - - - 244,323 244,323
Prepaid items 26,422 9,328 9,328 - 45,078
Inventory 1,153,129 52,244 1,984 - 1,207,357
Total current assets 3,092,958 2,769,441 4,068,400 459,642 10,390,441 Noncurrent assets:
Capital assets:
Nondepreciable assets 784,193 384,033 694,718 - 1,862,944 Depreciable, net 3,227,807 2,402,485 5,535,773 - 11,166,065 Total capital assets, net 4,012,000 2,786,518 6,230,491 - 13,029,009 Total noncurrent assets 4,012,000 2,786,518 6,230,491 - 13,029,009 Total assets $ 7,104,958 $ 5,555,959 $ 10,298,891 $ 459,642 $ 23,419,450
DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ 1,267,149 $ 442,312 $ 605,287 $ 181,072 $ 2,495,820 Total deferred outflows of resources $ 1,267,149 $ 442,312 $ 605,287 $ 181,072 $ 2,495,820
LIABILITIES
Current liabilities:
Accounts payable $ 97,856 $ 17,248 $ 12,177 $ 2,428 $ 129,709 Accrued expenses 35,978 1,838 16,371 - 54,187
Interest payable - - 22,333 - 22,333
Deposits payable 268,267 - - - 268,267
Due to other funds - - - 329,029 329,029
Compensated absences, current 56,011 19,426 27,718 7,168 110,323 Long-term liabilities, current - - 97,000 - 97,000
Total current liabilities 458,112 38,512 175,599 338,625 1,010,848 Noncurrent liabilities:
Total OPEB liability 692,129 362,544 362,544 - 1,417,217 Net pension liability 3,121,051 1,089,436 1,490,853 445,990 6,147,330 Compensated absences, noncurrent 2,062 54,291 71,198 16,387 143,938 Long-term liabilities, noncurrent - - 2,842,000 - 2,842,000 Total noncurrent liabilities 3,815,242 1,506,271 4,766,595 462,377 10,550,485 Total liabilities $ 4,273,354 $ 1,544,783 $ 4,942,194 $ 801,002 $ 11,561,333
DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ 370,791 $ 129,428 $ 177,118 $ 52,985 $ 730,322 OPEB adjustments 69,925 36,627 36,627 - 143,179
Total deferred inflows of resources $ 440,716 $ 166,055 $ 213,745 $ 52,985 $ 873,501
NET POSITION
Net Investment in capital assets $ 4,012,000 $ 2,786,518 $ 3,291,491 $ - $ 10,090,009 Unrestricted (353,963) 1,500,915 2,456,748 (213,273) 3,390,427 Total net position $ 3,658,037 $ 4,287,433 $ 5,748,239 $ (213,273) $ 13,480,436 Business-Type Activities
Enterprise Funds
City of Gridley
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2024
Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
OPERATING REVENUES
Charges for services $ 8,017,743 $ 1,151,881 $ 1,460,038 $ 3,142 $ 10,632,804 Intergovernmental - - - 304,555 304,555
Other revenue - 1,050 - 2,643 3,693
Total operating revenues 8,017,743 1,152,931 1,460,038 310,340 10,941,052
OPERATING EXPENSES
Salaries and benefits 2,338,276 705,257 1,242,297 295,953 4,581,783 Materials and supplies 354,185 186,006 274,094 12,158 826,443 Repairs and maintenance 193,567 173,842 265,831 1,898 635,138 Power and utilities 3,730,225 204 124,823 - 3,855,252
Contractual services 183,625 26,907 18,840 511 229,883
Administration 376,177 165,056 110,331 16,929 668,493
Miscellaneous - - 41,167 - 41,167
Depreciation and amortization 318,616 197,233 648,561 6,635 1,171,045 Total operating expenses 7,494,671 1,454,505 2,725,944 334,084 12,009,204 Operating income (loss) 523,072 (301,574) (1,265,906) (23,744) (1,068,152)
NONOPERATING REVENUES(EXPENSES)
Interest expense - - (81,218) - (81,218)
Interest income 26,809 44,580 69,820 2,722 143,931
Total nonoperating revenues(expenses) 26,809 44,580 (11,398) 2,722 62,713 Income (loss) before transfers 549,881 (256,994) (1,277,304) (21,022) (1,005,439)
CONTRIBUTIONS AND TRANSFERS
Transfers in - 218,772 95,459 - 314,231
Transfers out (1,400,000) - - (3,733) (1,403,733)
Net contributions and transfers (1,400,000) 218,772 95,459 (3,733) (1,089,502) Change in net position (850,119) (38,222) (1,181,845) (24,755) (2,094,941) Total net position - beginning 4,508,529 4,326,028 6,930,084 (217,647) 15,546,994 Prior period adjustments (373) (373) - 29,129 28,383
Total net position - beginning , as adjusted 4,508,156 4,325,655 6,930,084 (188,518) 15,575,377 Total net position - ending $ 3,658,037 $ 4,287,433 $ 5,748,239 $ (213,273) $ 13,480,436 Business-Type Activities
Enterprise Funds
City of Gridley
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Nonmajor
Electric Water Sewer Enterprise
Fund Fund Fund Funds Total
Cash flows from operating activities:
Receipts from customers $ 8,245,563 $ 1,155,789 $ 1,476,017 $ 220,838 $ 11,098,207 Payments to suppliers (4,971,857) (567,831) (849,329) (1,504) (6,390,521) Payments to employees (1,758,862) (581,101) (829,075) (137,017) (3,306,055) Net cash provided (used) by operating activities 1,514,844 6,857 (202,387) 82,317 1,401,631 Cash flows from noncapital financing activities:
Interfund transactions (1,400,000) 218,772 95,459 (248,056) (1,333,825) Net cash provided (used) by noncapital financing activities (1,400,000) 218,772 95,459 (248,056) (1,333,825) Cash flows from capital financing activities:
Acquisition of capital assets (782,471) (381,529) (275,475) - (1,439,475) Principal payments on long-term debt (1,054) - (94,000) - (95,054) Interest paid on long-term debt - - (81,980) - (81,980) Net cash provided (used) by capital financing activities (783,525) (381,529) (451,455) - (1,616,509) Cash flows from investing activities:
Investment income received 25,723 43,717 68,606 3,113 141,159 Net cash provided (used) by investing activities 25,723 43,717 68,606 3,113 141,159 Net increase (decrease) in cash and cash equivalents (642,958) (112,183) (489,777) (162,626) (1,407,544) Cash and cash equivalents - beginning 1,884,643 2,715,645 4,393,234 287,115 9,280,637 Cash and cash equivalents - ending $ 1,241,685 $ 2,603,462 $ 3,903,457 $ 124,489 $ 7,873,093 Reconciliation of operating income to net cash provided (used) by operating activities:
Operating income (loss) $ 523,072 $ (301,574) $(1,265,906) (23,744) $ (1,068,152) Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 318,616 197,233 648,561 6,635 1,171,045
Prior period adjustments (373) (373) - 29,129 28,383
Changes in operating assets and liabilities:
Accounts receivables 250,918 2,858 15,979 932 270,687
Due from other governments - - - (90,434) (90,434)
Prepaid items (18,657) (9,328) (9,328) - (37,313)
Inventory (191,922) (1,838) (81) - (193,841)
Deferred outflows of resources 99,044 64,340 (3,480) (20,013) 139,891 Accounts payable 74,116 (6,115) (8,995) 863 59,869
Accrued expenses 2,758 1,838 4,161 - 8,757
Deposits payable (23,098) - - - (23,098)
Total OPEB liability (143,845) (75,347) (75,347) - (294,539) Net pension liability 194,124 (39,816) 267,539 160,101 581,948 Compensated absences (10,625) 8,924 10,765 2,337 11,401 Deferred inflows of resources 440,716 166,055 213,745 16,511 837,027 Net cash provided (used) by operating activities $ 1,514,844 $ 6,857 $ (202,387) $ 82,317 $ 1,401,631 Business-Type Activities
Enterprise Funds
FIDUCIARY FUND FINANCIAL STATEMENTS
Private-Purpose Trust Funds
The City’s private purpose trust funds include the Main Trust Fund and the Successor Agency Trust Fund.
The Successor Agency was created as a result of the State order to dissolve California Redevelopment Agencies. The Successor Agency Trust Fund is used to track the activities by the Successor Agency Oversight Board and the City’s Department of Finance in relation to the remaining assets and liabilities of the Successor Agency. The Housing Successor is governed by the City of Gridley City Council and is obligated to use the Housing Successor Agency’s assets according to Redevelopment law for low and moderate-income housing.
Custodial Funds
The City’s custodial funds include the Gridley Bid Fund and the Hospital JPA Administration Fund.
City of Gridley
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Private
Purpose Trust Custodial
Funds Funds
ASSETS
Cash and investments $ 1,116,572 $ -
Restricted cash and investments 16,366 -
Interest receivable 671 -
Capital assets, land 1,302,116 -
Total assets $ 2,435,725 $ -
DEFERRED OUTFLOWS OF RESOURCES $ 150,304 $ -
Loss on debt refunding
LIABILITIES
Accounts payable $ 5,130 $ -
Interest payable 81,885 -
Unearned revenue 305,725 -
Advances from the City 326,868 -
Long-term liabilities, current 120,000 -
Long-term liabilities, noncurrent 3,850,000 -
Total liabilities $ 4,689,608 $ -
NET POSITION
Held in trust for private purposes $ (2,103,579) $ -
Total net position $ (2,103,579) $ -
City of Gridley
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Private
Purpose Trust Custodial
Funds Funds
ADDITIONS
Property taxes $ 466,740 $ -
Interest Income 4,573 -
Total additions 471,313 -
DEDUCTIONS
Professional services 78,096 -
Administrative expense 3,542 -
Payments to the City of Gridley 12,895 560
Interest and fiscal charges 194,382 -
Total deductions 288,915 560
Change in net position 182,398 (560)
Total net position - beginning (2,285,977) 560
Total net position - ending $ (2,103,579) $ -
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NOTES TO THE BASIC
FINANCIAL STATEMENTS
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Gridley (the "City") is a municipal corporation organized under the constitution and laws of the State of California. The City operates under a Council-Administrator form of government and provides the following services: public safety (police, fire, and animal regulation), street, sanitation, transportation and social services, recreation, public improvements, planning and zoning, water, sewer, electrical, and general administrative services.
The voters of the City give authority and responsibility for operations to the City Council. The City Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the City's management is the financial budget, which is adopted annually by the City Council.
The basic financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.
A. Financial Reporting Entity
As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The following entities are reported as blended component units:
Gridley Public Financing Authority
The Gridley Public Financing Authority (the "Authority"), established February 4, 2008, is a joint powers authority created by the City of Gridley and the former Gridley Redevelopment Agency. The creation of the Authority is authorized under the MelloRoos Local Bond Pooling Act of 1985, constituting Article 4, Chapter 5, Division 7, Title 1 (commencing with Section 6584) of the California Government Code. The City and the Authority are separate legal entities. For financial reporting purposes, the Authority is reported as a part of the City's operations because the five (5) members of the City Council also act as the governing body of the Authority. The purpose of the Authority is to assist in the financing of public capital improvements. No separate financial statements are issued for the Authority.
B. Basis of Presentation, Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City.
Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support.
These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 for interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, interfund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.
The City reports the following funds as major funds:
General Fund
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities such as public safety, public ways and facilities, parks and recreation services, and economic development services. 08-Home-4987 Fund
The 08-Home-4987 Fund is a special revenue fund used to account for the activities of the U.S.
Department of Housing and Urban Development HOME Investment Partnerships Grant.
Block Grant Fund
The Block Grant Fund is a Community Development Block Grant (CDBG) Revolving Loan program and Economic Development Block Grant (EDBG) Program. The City participates in this federally funded program that is utilized to fund housing activities, community facilities and public service projects serving lower income private parties and businesses. Eligible activities include funding housing activities (single/multi-family) rehabilitation, rental housing acquisition, homeownership assistance, or new construction. Interest may vary depending on the loan terms and interest may be deferred until the related property is refinanced or sold. The repayment of the loans results in program income, which is deposited into the Housing Rehabilitation Revolving Loan Fund (RLF) program for public benefit projects, general administration, and program delivery functions (preapproved ratios to the funds loaned).
Grant Related Fund
The Grant Related Fund is used to account for various restricted grants, mostly from the State of California (transportation, planning, and COPS grants).
Additionally, the City reports the following nonmajor fund types of governmental funds:
Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund-type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.
The City has the following enterprise funds that have been reported as major:
Electric Fund
The electric fund is used to account for the activities of the City's electric generation and distribution operations.
Water Fund
The water fund is used to account for the activities of the City's water treatment and distribution operations.
Sewer Fund
The sewer fund is used to account for the activities of the City's sewage collection and treatment operations.
Fiduciary Funds
The City reports the following fiduciary funds:
Private Purpose Trust Funds
These funds include the Main Trust and Successor Agency. The Main Trust Fund is used to account for trust arrangements where the balances and activity benefit individuals and organizations other than the City. The Successor Agency fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.
Custodial Funds
The City administers two custodial funds, the Gridley Bid fund and the Hospital JPA Administration fund.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
C. Cash and Investments
The City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund's equity share of the City's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund's equity in the pool, the pool operates like a demand deposit account for the participating funds.
Interest income earned on pooled cash and investments is allocated monthly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.
The City's investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of their portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. This amount is included in cash and cash equivalents in the balance sheet of the governmental funds. Changes in fair value are allocated to each participating fund.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
Market approach - This approach uses prices generated for identical or similar assets or liabilities.
The most common example is an investment in a public security traded in an active exchange such as the NYSE.
Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.
For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City's cash and investment pool, and restricted non-pooled investments with initial maturities of three months or less.
D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and to meet bond indenture debt reserve requirements.
E. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.
F. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred. Business-type activities report utilities and interest earnings as their major receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available.
Loans receivable are recorded in the fund statements, but are recorded as deferred inflows of resources to indicate they do not represent current financial resources. Proprietary fund receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables.
G. Lease Receivables
When applicable, the City’s lease receivables are measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease.
The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.
H. Prepaid Expenses and Inventory
Inventories are stated at cost (average cost per unit) for governmental and proprietary funds. The cost is recorded as an expenditure/expense in the funds at the time individual inventory items are consumed, rather than purchased. Inventories of governmental funds are offset by nonspendable fund balance to indicate they do not constitute resources available for future appropriation.
Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
I. Capital Assets
In the government-wide financial statements, infrastructure with an aggregate cost of $25,000 or more and land, buildings, machinery, vehicles, and equipment with a cost of $5,000 or more and a useful life of two years are capitalized. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their acquisition value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Intangible right-to-use assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset.
Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying asset.
Depreciation and amortization is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated or amortized.
The range of estimated useful lives by type of asset is as follows:
Infrastructure and buildings 20 - 50 years
Improvements 10 - 30 years
Equipment and vehicles 3 - 20 years
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.
J. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
K. Compensated Absences
Compensated absences comprise unused vacation leave and compensatory time off, which are accrued as earned. Employees may accumulate sick leave without limits. The City's liability for compensated absences is recorded in the government-wide Statement of Net Position for governmental funds and the Statement of Net Position for proprietary funds as appropriate. A liability is calculated for all the costs of compensated absences based upon benefits earned by employees in the current period for which there is a probability of payment at termination.
Accumulated unpaid vacation and sick pay are accrued when earned. In addition, those employees who have reached the age of retirement may cash out sick leave upon retirement. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. In December of each year, management personnel are allowed to convert unused sick leave earned within the previous twelve months, in excess of nine days, to vacation. The general fund and enterprise funds are used to liquidate compensated absences.
L. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
M. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
N. Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources, and deferred inflows of resources related to the City’s other postemployment benefits, OPEB expense information of the City’s OPEB plan have been determined based on information provided in an actuarial study. The City recognizes benefit payments when due and payable in accordance with the benefit terms in the fund statements. Generally accepted accounting principles require that the reported results must pertain to City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date July 1, 2023
Measurement Date June 30, 2024
Measurement Period Julye 31, 2023 to June 30, 2024
O. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:
Nonspendable
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed, or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed
Committed fund balances have constraints imposed by passage of a Resolution of the City Council which may be altered only by Resolution of the City Council. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources. The City considers Resolutions to be the highest level of action that can be taken by Council that constitutes the most binding constraint.
Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. The City Council has delegated the authority to make assignments of fund balance to the City Administrator.
Unassigned
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
P. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position.
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.
Q. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.
R. Property Taxes and Special Assessments
The County of Butte levies, bills, and collects property taxes and special assessments for the City.
Property taxes levied are recorded as revenue when received, in the fiscal year of levy, due to the adoption of the "alternate method of property tax distribution", known as the Teeter Plan, by the City and the County of Butte. The Teeter Plan authorizes the Auditor/Controller of the County of Butte to allocate 100% of the secured property taxes billed, but not yet paid.
The County of Butte remits tax monies to the City in three installments as follows: 50% remitted in December; 45% remitted in April; 5% remitted in June.
Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.
Property valuations are established by the Assessor of the County of Butte for the secured and unsecured property tax rolls. Under the provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of purchase price or value in 1978 whichever is later. From this base assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.
Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied.
The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
S. Budgetary Information
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project length basis. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year. The budgetary data is prepared on the modified accrual basis consistent with the related "actual" amounts.
Department heads submit a proposed budget to the City Administrator. The City Administrator submits a proposed budget to the City Council for the following year beginning July 1. The preliminary budget may or may not be amended by the City Council after public hearings are held and is adopted by City Council resolution prior to July 1 in accordance with the municipal code.
The City Council may amend the budget by motion during the fiscal year. The City Administrator is authorized to transfer budgeted amounts within an object or purpose within any department. However, the City Council must approve revisions that alter the total expenditures of any department. Budgetary control is legally maintained at the fund level.
Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.
Supplemental appropriations, which increase appropriations, may be made during the fiscal year. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations.
T. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
U. Implemented New Accounting Pronouncements
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections in previously issued financial statements.
This statement did not have a material impact on the financial statements.
V. Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to identify the potential impact on the financial statements of the following GASB Statements:
GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.
This Statement requires that a liability for certain types of compensated absences - including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter.
GASB Statement No. 102, Certain Risk Disclosures
This Statement requires a government 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. Additionally, this Statement requires a government to assess whether an event or events associated with 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.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions for (1) the concentration or constraint (2) each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements (3) actions taken by the government prior to the issuance of the financial statements to mitigate the risk. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter.
GASB Statement No. 103, Financial Reporting Model Improvements This Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement establishes new accounting and financial reporting requirements or modifies existing requirements related to (a) Management’s discussion and analysis (MD&A) (b) Unusual or infrequent items (c) Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position (d) Information about major component units in basic financial statements (5) Budgetary comparison information (6) Financial trend information in the statistical section. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2024, cash and investments were reported in the financial statements as follows:
Governmental
Activities
Business-Type
Activities Total
Cash and investments $ 12,416,849 $ 7,873,093 $ 1,116,572 $ 21,406,514 Restricted cash and investments - - 16,366 16,366
Total cash and investments $ 12,416,849 $ 7,873,093 $ 1,132,938 $ 21,422,880 Government Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Position
Cash and investments consisted of the following as of June 30, 2024:
Deposits:
Cash on hand $ 1,060
Cash in banks 13,281,626
Total deposits 13,282,686
Investments:
Local Agency Investment Fund 7,013,114
Certificates of Deposit 1,110,714
Total investments 8,123,828
Restricted cash and investments:
California Asset Management Program (CAMP) 16,366
Total cash and investments $ 21,422,880
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).
The bank balances before reconciling items totaled $14,619,014 at June 30, 2024 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $13,280,016, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.
Interest income from cash and investments with fiscal agents is credited directly to the related fund.
B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
C. Investment Policy
Under the terms of certain debt issuances, the City must maintain required amounts of cash and investments with trustees or fiscal agents. These funds are unexpended bond proceeds or are pledged as reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statute. The table below identifies the investment types that are authorized for investments with fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
The table also identifies certain provisions of these debt agreements:
Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio Anyone Issuer Local Agency Bonds None None None
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 365 days None None
Commercial Paper 270 days None None
Federal Funds 365 days None None
Unsecured Certificates of Deposit 365 days None None
Time Deposits 365 days None None
Cash Sweep Accounts None None None
Money Market Mutual Funds N/A None None
Mortgage-backed securities None None None
Local Agency Investment Fund (LAIF) N/A None $75 million/account The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value. Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:
Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio Anyone Issuer Local Agency Bonds 5 years None 10%
U.S. Treasury Obligations 5 years None None
State Obligations - CA And Others 5 years None None
CA Local Agency Obligations 5 years None None
U.S. Agency Obligations 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper - Select Agencies 270 days 25% 10%
Commercial Paper - Other Agencies 270 days 40% 10%
Negotiable Certificates of Deposit 5 years 30% 30%
CD Placement Service 5 years 30% 30%
Repurchase Agreements 1 year None 10%
Reverse Repurchase Agreements and Securities
Lending Agreements 92 days 20% 10%
Medium-Term Notes 5 years 30% 10%
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Collateralized Bank Deposits 5 years None None
Mortgage Pass-Through Securities 5 years 20% None
Bank/Time Deposits 5 years None None
County Pooled Investment Funds N/A None None
JPA Pools (other investment pools) N/A None None
Local Agency Investment Fund (LAIF) N/A None $75 million/account Voluntary Investment Program Fund N/A None None
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
D. External Investment Pool
The City's investments with LAIF at June 30, 2024, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.
E. Allocation of Interest Income Among Funds
Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated monthly based on the ending cash balances of the previous month in each fund receiving interest.
F. Risk Disclosures
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 term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2024, the City’s investments were in compliance with the ratings required by the City’s investment policy and Government Code. The California Asset Management Program (CAMP) investment pool was the only investment vehicle required to be rated and had a rating of AAAm by S&P.
Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2024, the City had no investments in any one issuer (other than U.S. Treasury obligations, bonds, and the external investment pools) that represented 5% or more of the total City investments.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.
With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).
As of June 30, 2024, the City’s investments had the following maturities:
12 Months
or Less 1-5 years Fair Value
ConcentrationsFair Value
Input Levels
Local Agency Investment Fund $ 7,013,114 $ - $ 7,013,114 86.3% n/a Certificates of Deposit 491,779 618,935 1,110,714 13.7% Level 2 Total Investments $ 7,504,893 $ 618,935 $ 8,123,828
Maturity
Investment Type
NOTE 3 - LOANS RECEIVABLE
The following is a summary of loans receivable at year end:
Balance Balance
Loans Receivable July 01, 2023 Additions Retirements June 30, 2024 Governmental Funds:
Home Program $ 8,873,242 $ 122,250 $ 151,072 $ 8,844,420 CDBG Program 1,873,609 448,037 42,268 2,279,378
Total Governmental Funds 10,746,851 570,287 193,340 11,123,798 Fiduciary Funds:
Construction Loan 678,000 - - 678,000
Less: Allowance for Uncollectible Loans (678,000) - - (678,000) Total Loans Receivable $ 10,746,851 $ 570,287 $ 193,340 $ 11,123,798 Governmental Funds
The City participates in the Home Investment Partnerships (HOME) program, the Community Development Block Grant (CDBG) Revolving Loan program and the CalHome program. Under these programs, grants or loans are provided under favorable terms to homeowners, developers, or businesses who agree to spend these funds in accordance with the City's terms.
The balance of the loans receivable have been offset in the governmental fund financial statements by deferred inflows of resources as they are not deemed measurable and available within sixty days. In the government-wide financial statements, the loans are not offset in accordance with the accrual basis of accounting.
Fiduciary Funds
The former RDA assisted Gridley Pacific Associates with its acquisition and development of the Washington Court Apartments Affordable Housing Project by providing $678,000 in the form of cash in return for a note bearing simple interest at a rate of 3% per year, secured by a deed of trust on the Project.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
The former RDA had several programs under which it extended loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and-moderate income housing. The remaining loan, issued to the Washington Court Apartments, has a forgiveness clause if the developer complies with all the terms of the loan over its full term. The former RDA had provided an allowance of 100% for the note receivable subject to the forgiveness provision of this loan. Per long-term monitoring reviews, all terms have been met by the developer for the loan as of June 30, 2024.
NOTE 4 - LEASES RECEIVABLE
Leases receivable for governmental activities consisted of the following as of June 30, 2024:
Township 18
North, Range 3
East 13.62 Acres
Township 18
North, Range 3
East 12.17 Acres Total
Inception 11/17/2011 12/29/2010
End 11/16/2036 12/28/2035
Interest Rate 1.51% 1.47%
Annual Payment $ 15,000 $ 15,000
Leases Receivable:
Beginning $ 182,047 $ 170,205 $ 352,252
Additions - - -
Deletions (12,333) (12,588) (24,921)
Ending 169,714 157,617 327,331
Deferred Inflows of Resources:
Beginning 179,574 167,975 347,549
Additions - - -
Deletions (13,424) (13,444) (26,868)
Ending 166,150 154,531 320,681
Net Book Value $ 3,564 $ 3,086 $ 6,650
The following summarizes future collections for governmental activities leases receivable:
Year Ending June 30 Principal Interest
2025 $ 25,300 $ 4,700
2026 25,679 4,321
2027 26,064 3,936
2028 26,449 3,551
2029 26,850 3,150
2030-2034 140,399 9,601
2035-2039 56,590 908
Total $ 327,331 $ 30,167
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
NOTE 5 - INTERFUND TRANSACTIONS
Advances To and From Funds
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years.
Pursuant to Resolution No. 2003.RDA-05, the former Redevelopment Agency agreed to reimburse the City of Gridley for infrastructure improvements within the Agency's industrial park for up to $250,000.
No interest accrues for the amount due to the City.
The Successor Agency agreed to reimburse the City's General Fund for the formation of the RDA in the amount of $176,868. Repayment is made as funds are available. No interest accrues for the amount due to the City.
As of June 30, 2024, advances to the Successor Agency fund consisted of the following:
Advances Advances
to from
Fund Other Funds Other Funds
General Fund $ 76,868 $ -
Block Grant Fund 250,000 -
Successor Agency Private Purpose Trust Fund - 326,868
Total Advances $ 326,868 $ 326,868
Inter-fund Receivables and Payables
As of the end of the fiscal year, balances are owed between funds for temporary pooled cash adjustments and temporary loans.
As of June 30, 2024, inter-fund receivables and payables consisted of the following:
Due from Due to
Fund Other Funds Other Funds
General Fund $ 2,353,627 $ -
Nonmajor Funds 329,517 2,598,438
Senior Tax Enterprise Fund 244,323 329,029
Total Due From/To $ 2,927,467 $ 2,927,467
Transfers In/Out
With Council approval resources may be transferred from one fund to another. The most significant transfers were from the Electric Fund to the General Fund for unfunded operations and to the Grant Related Fund for carbon credits. Other transfers were made for operations within each respective fund.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
The following summarizes transfers between funds during the fiscal year ended June 30, 2024:
Fund Transfer in Transfer out
General Fund $ 1,476,517 $ 3,930,222
Block Grant Fund - 149,548
Grant Related Funds 354,462 346,485
Electric Enterprise Fund - 1,400,000
Water Enterprise Fund 218,772 -
Sewer Enterprise Fund 95,459 -
Nonmajor Governmental Funds 3,725,308 40,530
Nonmajor Enterprise Funds - 3,733
Total Transfers $ 5,870,518 $ 5,870,518
Intra-Fund Transfers In/Out
The following table represents intra-fund transfers made during the fiscal year ended June 30, 2024:
Fund Transfer in Transfer out
General Fund $ 177,332 $ -
General Fund Sick Leave Reserve Fund - 177,332
Total Transfers $ 177,332 $ 177,332
Intra-fund transfers are eliminated for presentation in the fund financial statements.
NOTE 6 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2024:
Balance Deletions/ Balance
Governmental activities: July 01, 2023 Additions Transfers Adjustments 6/30/2024 Non-depreciable:
Land $ 1,142,779 $ - $ - $ 8,211 $ 1,150,990
Construction in Progress 345,812 661,619 (298,512) (35,546) 673,373 Total Non-Depreciable 1,488,591 661,619 (298,512) (27,335) 1,824,363 Depreciable:
Infrastructure 7,999,087 - - - 7,999,087
Buildings and improvements 3,654,840 - - - 3,654,840
Improvements other than Buildings 4,475,439 53,572 298,512 - 4,827,523 Vehicles and Equipment 5,929,711 119,228 - (5,501) 6,043,438 Total Depreciable 22,059,077 172,800 298,512 (5,501) 22,524,888 Less Accumulated Depreciation for:
Infrastructure (4,312,907) (269,466) - - (4,582,373)
Buildings and Improvements (2,670,571) (112,721) - - (2,783,292) Improvements other than Buildings (1,406,120) (177,472) - (24,821) (1,608,413) Vehicles and Equipment (4,373,958) (237,889) - (2,200) (4,614,047) Total Accumulated Depreciation (12,763,556) (797,548) - (27,021) (13,588,125) Total Depreciable Capital Assets - Net 9,295,521 (624,748) 298,512 (32,522) 8,936,763 Total Capital Assets - Net $ 10,784,112 $ 36,871 $ - $ (59,857) $ 10,761,126 City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Depreciation expense for governmental activities was charged to the following programs during the year:
General Government $ 84,606
Public Safety 183,524
Streets and Public Works 389,270
Parks and Recreation 140,148
Total depreciation expense $ 797,548
Capital assets for business-type activities consisted of the following as of June 30, 2024:
Balance Deletions/ Balance
Business-Type Activities: July 01, 2023 Additions Transfers Adjustments June 30, 2024 Non-depreciable:
Land $ 921,793 $ - $ - $ - $ 921,793
Construction in Progress 644,242 330,298 (13,206) (20,183) 941,151 Total Non-Depreciable 1,566,035 330,298 (13,206) (20,183) 1,862,944 Depreciable:
Infrastructure 6,340,384 - - - 6,340,384
Buildings and Improvements 1,139,545 - - - 1,139,545
Improvements other than Buildings 10,068,025 80,299 13,206 - 10,161,530 Right of Use Assets 3,722 - - - 3,722
Vehicles and Equipment 8,440,235 1,047,988 - - 9,488,223 Total Depreciable 25,991,911 1,128,287 13,206 - 27,133,404 Less Accumulated Depreciation for:
Infrastructure (2,877,245) (162,065) - - (3,039,310)
Buildings and Improvements (956,054) (17,099) - - (973,153) Improvements other than Buildings (4,692,658) (539,433) - - (5,232,091) Right of Use Assets (2,603) (1,119) - - (3,722)
Vehicles and Equipment (6,267,734) (451,329) - - (6,719,063) Total Accumulated Depreciation (14,796,294) (1,171,045) - - (15,967,339) Total Depreciable Capital Assets - Net 11,195,617 (42,758) 13,206 - 11,166,065 Total Capital Assets - Net $ 12,761,652 $ 287,540 $ - $ (20,183) $ 13,029,009 Depreciation expense for business-type activities was charged to the following programs during the year:
Electricity 318,616
Water 197,233
Sewer 648,561
Other Enterprise 6,635
Total depreciation expense $ 1,171,045
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
NOTE 7 - NONCURRENT LIABILITIES
Noncurrent liabilities consisted of the following as of June 30, 2024:
Balance Balance Due Within
Description July 01, 2023 Additions Retirements June 30, 2024 One Year Governmental Activiies
Net Pension Liability $ 8,397,209 $ 5,706,320 $ 5,617,438 $ 8,486,091 $ - Total OPEB Liability 2,269,072 35,359 425,794 1,878,637 - Compensated Absences 418,238 205,101 175,738 447,601 211,332 Total Governmental Activities Debt $ 11,084,519 $ 5,946,780 $ 6,218,970 $ 10,812,329 $ 211,332 Business-Type Activities
Direct Borrowing:
USDA Rural Development Loan (2001) 903, $ 000 $ - $ 38,000 $ 865,000 $ 39,000 USDA Rural Development Loan (2009) 2,130,000 - 56,000 2,074,000 58,000 Lease Liability 1,054 - 1,054 - -
Net Pension Liability 5,565,382 2,890,424 2,308,476 6,147,330 - Total OPEB Liability 1,711,756 26,675 321,214 1,417,217 - Compensated Absences 242,861 126,248 114,848 254,261 110,323 Total Business-type Activities Debt $ 10,554,053 $ 3,043,347 $ 2,839,592 $ 10,757,808 $ 207,323 Fiduciary Funds - Successor Agency:
Tax allocation bonds, Series 2022A $ 2,390,000 $ - $ 65,000 $ 2,325,000 $ 65,000 Tax allocation bonds, Series 2022B 1,700,000 - 55,000 1,645,000 55,000 Total Long-term liabilities $ 4,090,000 $ - $ 120,000 $ 3,970,000 $ 120,000 Business-Type Activities - USDA Rural Development Loans On February 12, 2001, the City executed a long-term loan agreement with the United States Department of Agriculture (USDA) Rural Development to repay the interim sewer project financing provided by U.S.
Bank. The interim financing repayment total consisted of $1,478,141 in principal and $9,529 in accrued interest. Interest on the new loan, at the rate of 3.25%, is payable semiannually. Annual principal payments, ranging from $18,670 to $65,000, are also required. This loan will be completely repaid on September 1, 2040 and is secured by the revenues of the City's sewer fund.
On April 15, 2009, the City entered into a loan/grant agreement with USDA Rural Development for the rehabilitation and upgrade of the City's existing wastewater treatment plant. The agreement consists of a loan of $3,100,000 with a subsequent grant of $1,000,000. Interest, at the rate of 2.5%, is payable annually. This loan will be completely repaid on April 1, 2050.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Future debt service payments for the USDA Rural Development Loans are as follows:
Year Ending June 30 Principal Interest Total
2025 $ 97,000 $ 79,329 $ 176,329
2026 99,000 76,595 175,595
2027 102,000 73,804 175,804
2028 105,000 70,914 175,914
2029 108,000 67,950 175,950
2030-2034 587,000 292,113 879,113
2035-2039 676,000 203,998 879,998
2040-2044 568,000 112,318 680,318
2045-2049 497,000 50,350 547,350
2050-2054 100,000 2,499 102,499
Total $ 2,939,000 $ 1,029,870 $ 3,968,870
Business-Type Activities
Successor Agency - Tax Allocation Bonds
In 2002, the former RDA issued $4,750,000 of Tax Allocation Bonds, Series 2008A (Taxable) and Series 2008B (Tax Exempt). A total of $2,980,000 of Series 2008A bonds were issued and $1,770,000 of Series 2008B bonds. The proceeds of the Series 2008A bonds issued were used to repay a significant portion of the loans from the City of Gridley to the Agency. These bonds were refunded in fiscal year 2022 with the issuance of $2,390,000 in Tax Allocation Bonds, Series 2022A and $1,700,000 in Tax Allocation Bonds, Series 2022B.
The Series 2022A bonds bear annual interest at 5.26% and that is payable semi-annually on August 1st and February 1st. Principal is paid in annual installments beginning August 1, 2023 and ending August 1, 2043 in amounts ranging from $65,000 to $185,000. The Series 2022B bonds bear annual interest at
3.84% and that is payable semi-annually on August 1st and February 1st. Principal is paid in annual installments beginning August 1, 2023 and ending August 1, 2043 in amounts ranging from $55,000 to $115,000.
The Successor Agency recognized $163,968 as a deferred loss on the early defeasance of debt which will be amortized through fiscal year 2043. The Successor Agency realized savings of $1,105,328, which was the aggregate difference of the total debt service between the refunded debt of $7,579,125 and refunding debt of $6,473,797. Future debt service payments for the tax allocation bonds are as follows:
Year Ending June 30 Principal Interest Total
2025 $ 120,000 $ 182,698 $ 302,698
2026 130,000 176,939 306,939
2027 135,000 170,822 305,822
2028 145,000 164,345 309,345
2029 150,000 157,510 307,510
2030-2034 850,000 675,287 1,525,287
2035-2039 1,075,000 451,516 1,526,516
2040-2044 1,365,000 166,583 1,531,583
Total $ 3,970,000 $ 2,145,700 $ 6,115,700
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
NOTE 8 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency CostSharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
Tier I Tier II PEPRA Tier I PEPRA
Benefit formula 2% @ 55 2% @ 55 2% @ 62 3% @ 50 2.7% @ 57 Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 55 55 62 50 57
Monthly benefits as a
% of eligible compensation 2.00% 2.00% 2.00% 3.00% 2.00% Required employee contribution rates 7.00% 7.00% 7.75% 9.00% 13.75% Required employer contribution rates 12.47% 11.84% 7.68% 25.65% 13.54% Miscellaneous Safety
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Employees Covered
At June 30, 2024, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety Total
Active 32 14 46
Transferred 16 13 29
Separated 17 7 24
Retired 53 39 92
Total 118 73 191
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2024, the City’s contributions were as follows:
Employer
Contributions
Miscellaneous $ 934,000
Safety 688,852
Total Employer Contributions $ 1,622,852
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liabilities as follows:
Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 8,791,446
5,841,975
$ 14,633,421
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2023, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2023 and 2023 was as follows:
Miscellaneous Safety Combined Plans
Proportion - June 30, 2023 0.18148% 0.07962% 0.12088%
Proportion - June 30, 2024 0.17581% 0.07815% 0.11730%
Change - Increase/(Decrease) -0.00566% -0.00146% -0.00358% For the year ended June 30, 2024, the City recognized pension expense of $1,638,062.
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 871,725 $ -
Differences between Expected and Actual Experience 878,023 106,388 Differences between Projected and Actual Investment Earnings 2,222,887 - Differences between Employer's Contributions and
Proportionate Share of Contributions 356,596 123,101
Change in Employer's Proportion 31,145 999,174
Pension Contributions Made Subsequent to Measurement Date 1,622,852 - Total $ 5,983,228 $ 1,228,663
Misc. and Safety
The City reported $1,622,852 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety Total
$ 249,552 $ 489,197 $ 738,750
201,454 356,657 558,111
1,099,031 672,663 1,771,694
40,844 22,315 63,158
$ 1,590,881 $ 1,540,832 $ 3,131,713
Deferred Outflows/(Inflows) of
Fiscal Year Ending Resources
June 30:
Total
2026
2027
2028
2025
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Mortality (2)
(1) Varies by entry age and service
(2) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.9% discount rate is adequate and the use of the municipal bond rate calculation is not necessary.
The long-term expected discount rate of 6.9% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:
Miscellaneous Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability $ 12,090,501 $ 8,334,642 $ 20,425,144 Current 6.90% 6.90% 6.90%
Net Pension Liability $ 8,791,446 5,841,975 $ 14,633,421 1% Increase 7.90% 7.90% 7.90%
Net Pension Liability $ 6,076,041 3,804,041 $ 9,880,082 Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
NOTE 9 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
The City sponsors and administers a single-employer health care plan for its employees. The plan provides medical, dental, and vision coverage. Medical coverage is provided through CalPERS under the City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Public Employees' Medical and Hospital Care Act (PEMHCA), also referred to as PERS Health. The City sets its contribution rates for health insurance on behalf of active employees according to the PEMHCA statutory minimum. The amounts are indexed (increased) in all future years according to the rate of medical inflation. The excess of the designated City contribution for healthcare (the second highest premium available in the 95948 zip code area) over the PEMHCA statutory minimum is contributed to a Cafeteria Plan and the employee may elect to have some or all of this excess contributed on his or her behalf to CalPERS as an "employee contribution" towards healthcare benefits. As the City 's OPEB benefits are administered by City personnel, no separate financial statements are issued.
Management employees are subject to PERS' "100/90 State Contribution Formula" under which the City's contribution is determined based upon the weighted average of the four most popular medical plan options under PEMHCA, as announced each year by CalPERS. The City offers the same medical plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverage's offered under PEMHCA. Management employees hired on or before December 31, 2012 are eligible for benefits upon retirement at age 50 with 10 years of service. The City's contribution on behalf of Management hired on or before December 31, 2012 retirees, is based on the ‘PERS’ "Unequal Contribution Method" and equals 5% of the statutory minimum multiplied by the number of years the City has participated in PEMHCA.
Employees Covered by Benefit Terms
At June 30, 2024, the benefit terms covered the following employees:
Active employees 3
Inactive employees 8
Total employees 11
Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:
Valuation Date:
Measurement Date:
Actuarial Cost Method:
Amortization Period:
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Increases
Trend Rate
Municipal Bond Rate
Mortality
Notes:
The discount rate increased from 3.54% to 3.93%.
Payroll growth increased from 3% to 3.5%.
3.93%
3.93%
7.50%
Entry-Age Normal Cost Method
Pub-2010 General Employees HeadcountWeighted Mortality fully generational using Scale MP-2021, and Pub-2010 General
Retirees Headcount-Weighted Mortality
fully generational using Scale MP-2021.
July 1, 2023
June 30, 2024
30 years
3.10%
3.50%
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.
Contributions
The City's policy is to fully fund the annual required contribution, which is determined by an actuary. The City makes the contributions on behalf of the participants. For the fiscal year ended June 30, 2024, the City paid contributions of $172,125. There have been no assets accumulated in a trust to provide for the benefits of this plan.
Total OPEB Liability
The City's Total OPEB liability was measured as of June 30, 2024 (measurement date) and was determined by an actuarial valuation as of July 1, 2023 (valuation date) for the fiscal year ended June 30, 2024 (reporting date).
Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year ended June 30, 2024:
Fiscal Year Ended June 30, 2024
Total OPEB
Liability
Balance at June 30, 2023 $ 3,980,828
Service cost 36,324
Interest in Total OPEB Liability 127,463
Balance of diff between actual/exp experience (656,901) Balance of changes in assumptions (41,981)
Benefit payments (149,879)
Net changes (684,974)
Balance at June 30, 2024 $ 3,295,854
The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.
Deferred Inflows and Outflows of Resources
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience $ - $ 312,974 Change in assumptions - 20,001
Totals $ - $ 332,975
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended June 30, Amount
2025 $ (332,975)
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2024:
Service cost $ 36,324
Interest on total OPEB liability 127,463
Difference between actual and expected experience (213,351) Change in assumptions 111,598
OPEB Expense $ 62,034
The following summarizes changes in the Total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2024:
$ 3,295,854
(3,980,828)
(684,974)
Changes in deferred outflows 264,154
Changes in deferred inflows 332,975
Employer contributions and implicit subsidy 149,879
OPEB Expense $ 62,034
Net OPEB liability ending
Net OPEB liability beginning
Change in net OPEB liability
Sensitivity to Changes in the Discount Rate
The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, was as follows:
(1% Decrease ) 3.54% (1% Increase )
Net OPEB Liability (Asset) $ 3,742,708 $ 3,295,854 $ 2,926,927 Discount Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, was as follows:
(1% Decrease ) 7.00% (1% Increase )
Net OPEB Liability (Asset) $ 2,888,359 $ 3,295,854 $ 3,790,073 Trend Rate
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
NOTE 10 - DEFICIT FUND BALANCE AND NET POSITION
The City reported the following funds with deficit fund balance and net position as of June 30, 2024:
Deficit Deficit
Fund Net
Balance Position
SB 325 TDA Fund $ 535,349 $ -
Traffic Safety Fund 44,151 -
Planning and Development Fund 692 -
Gas Tax Fund 1,033,549 -
2021 Vierra Park Improvements Fund 51,216 -
Home Fund 10,215 -
Gridley Sports Complex Fund 70,065 -
Senior Taxi Fund - 213,273
Totals $ 1,745,237 $ 213,273
The fund deficits were a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues and interfund transfers.
NOTE 11 - RISK MANAGEMENT
The City is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article 1, Chapter 5, Division 7, Title 1 of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides claims processing, administrative services, risk management services, and actuarial studies. A member from each city governs the NCCSIF. The City Council members do not have significant oversight responsibility since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the extent of any deficiency in its equity balance. The audited financial statements of the JPA are available at the NCCSIF's office.
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City provides property, liability, and workers compensation insurance through Northern California Cities Self Insurance Fund a public entity risk pool currently operating as a common risk management and insurance program for several Northern California municipalities. Annual deposits are paid by member cities and are adjusted retrospectively to cover costs.
The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
current estimates that reflect recent settlements, claim frequency, and other economic and social factors.
A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made. The City does not have any material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years. The City's insurance coverage and the respective coverage providers are as follows:
Amount Coverage Provider Payment
General Liability
$0 - $50,000 Self-insured Banking layer
$50,001 - $450,000 Northern California Cities Self
Insurance Fund
Shared risk
$450,001 - $40,000,000 California Joint Powers Risk
Management Authority
Shared risk (to $5 mil, excess
insurance after that)
Workers' Compensation
$0 - $100,000 Self-insured Banking layer
$100,001 -$400,000 Northern California Cities Self
Insurance Fund
Shared risk
$400,001 - statutory CSAC-EIA Shared risk and Excess Insurance Property insurance
The City's standard deductible is $5,000 for coverage. The coverage limit for fiscal year 2024 was $1,000,000,000 blanket real and personal property.
Performance and Public Employee Dishonesty Bonds
The City has $25,000 in performance bond coverage for the City Clerk, $100,000 performance bond coverage for the City Treasurer, and $3,000,000 in coverage for public employee dishonesty with a deductible of $5,000.
NOTE 12 - RELATED ORGANIZATIONS
The City is a member of various joint powers authorities that provide goods or services to the City and other authority members. The City does not have sufficient authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations. The names and general functions of these joint powers are as follows:
Northern California Power Agency (NCPA)
Membership consists of 12 municipal electric utilities, one Rural Electric Cooperative, an irrigation district, and a public utility district. The NCPA is generally empowered to purchase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of NCPA on an elective basis. A Commission comprised of one representative for each member governs the NCPA.
The City is currently involved in several hydroelectric, geothermal, and other energy-related projects as a member of this agency. The NCPA is financed by contributions from member cities, government grants, and debt. The City is committed to providing substantial additional financial support for its portion of the actions and projects of the NCPA.
City of Gridley
Notes to the Basic Financial Statements
June 30, 2024
The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. The NCPA requires agency members to maintain at least 90% of the annual general operating reserve. The City has maintained the required reserve amount during the fiscal year ending 2024. Due to the nature of the reserve held by NCPA, payments made to the reserve are expensed as purchased power. The financial statements are available online at www.ncpa.com.
Transmission Agency of Northern California (TANC)
Members include eleven cities, one electric co-op, two irrigation districts, and one public utility district.
The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to 1% of the total expenditures. The financial statements are available online at http://tanc.us/financials.html.
NOTE 13 - COMMITMENTS AND CONTINGENCIES
Lawsuits
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.
Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
Deferred Compensation
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all full-time City employees, permits employees to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The assets and liabilities of these plans have been excluded from the accompanying financial statements. The City does not administer the plan.
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REQUIRED SUPPLEMENTARY INFORMATION
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City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments $ 3,261,347 $ 3,261,347 $ 3,283,264 $ 21,917 Licenses, permits and fees 96,329 96,329 209,920 113,591 Fines and forfeitures 8,286 8,286 10,525 2,239
Intergovernmental 357,988 357,988 220,474 (137,514)
Charges for services 82,942 82,942 63,780 (19,162)
Program income - - - -
Use of money and property 25,445 25,445 271,865 246,420 Other revenue 1,127,495 1,127,495 213,185 (914,310)
Total Revenues 4,959,832 4,959,832 4,273,013 (686,819)
EXPENDITURES
Current:
General government 1,190,031 1,190,031 214,850 975,181
Public safety 5,463,246 5,463,246 5,456,407 6,839
Streets and public works 631,611 631,611 432,079 199,532 Community development 130,450 130,450 65,189 65,261
Parks and recreation 142,532 142,532 141,244 1,288
Capital outlay 1,434,354 1,434,354 656,918 777,436
Total Expenditures 8,992,224 8,992,224 6,966,687 2,025,537 Excess (Deficiency) of Revenues over Expenditures (4,032,392) (4,032,392) (2,693,674) 1,338,718
OTHER FINANCING SOURCES (USES)
Transfers in - - 1,476,517 1,476,517
Transfers out - - (3,930,222) (3,930,222)
Total Other Financing Sources (Uses) - - (2,453,705) (2,453,705) Net Change in Fund Balance (4,032,392) (4,032,392) (5,147,379) (1,114,987) Fund Balance Beginning 12,947,169 12,947,169 12,947,169 - Prior Period Adjustments - Cash Allocations 210,628 210,628 210,628 - Fund Balance Beginning, as Adjusted 13,157,797 13,157,797 13,157,797 - Fund Balance Ending $ 9,125,405 $ 9,125,405 $ 8,010,418 $ (1,114,987) City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
08-Home-4987 Grant Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ - $ - $ 75 $ 75
Total Revenues - - 75 75
EXPENDITURES
Total Expenditures - - - -
Net Change in Fund Balance - - 75 75
Fund Balance Beginning 3,810 3,810 3,810 -
Fund Balance Ending $ 3,810 $ 3,810 $ 3,885 $ 75
City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Block Grant Fund
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Program income $ 8,145 $ 8,145 $ 169,422 $ 161,277
Use of money and property - - 34,826 34,826
Total Revenues 8,145 8,145 204,248 196,103
EXPENDITURES
Current:
Community development 9,472 9,472 487,571 (478,099)
Total Expenditures 9,472 9,472 487,571 (478,099)
Excess (Deficiency) of Revenues over Expenditures (1,327) (1,327) (283,323) (281,996)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - (149,548) (149,548)
Total Other Financing Sources (Uses) - - (149,548) (149,548) Net Change in Fund Balance (1,327) (1,327) (432,871) (431,544) Fund Balance Beginning 1,049,869 1,049,869 1,049,869 -
Prior Period Adjustments - Cash Allocations - - - -
Fund Balance Beginning, as Adjusted 1,049,869 1,049,869 1,049,869 - Fund Balance Ending $ 1,048,542 $ 1,048,542 $ 616,998 $ (431,544) City of Gridley
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Grant Related Funds
For the Year Ended June 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 341,157 $ 341,157 $ 697,380 $ 356,223 Use of money and property - - 12,129 12,129
Total Revenues 341,157 341,157 709,509 368,352
EXPENDITURES
Current:
General government - - 18,083 (18,083)
Public safety 30,500 30,500 45,694 (15,194)
Community development - - 55,688 (55,688)
Parks and recreation 41,030 41,030 44,233 (3,203)
Capital outlay 1,646,286 1,646,286 175,363 1,470,923
Total Expenditures 1,717,816 1,717,816 339,061 1,378,755 Excess (Deficiency) of Revenues over Expenditures (1,376,659) (1,376,659) 370,448 1,747,107
OTHER FINANCING SOURCES (USES)
Transfers in - - 354,462 354,462
Transfers out - - (346,485) (346,485)
Total Other Financing Sources (Uses) - - 7,977 7,977
Net Change in Fund Balance (1,376,659) (1,376,659) 378,425 1,755,084 Fund Balance Beginning 1,712,452 1,712,452 1,712,452 -
Prior Period Adjustments - Cash Allocations (577) (577) (577) - Fund Balance Beginning, as Adjusted 1,711,875 1,711,875 1,711,875 - Fund Balance Ending $ 335,216 $ 335,216 $ 2,090,300 $ 1,755,084 City of Gridley
Notes to Required Supplementary Information
Budgetary Accounting and Control
June 30, 2024
The City Council establishes budgets for all governmental funds on a basis consistent with Generally Accepted Accounting Principles, with the exception of capital projects which are budgeted on a project length basis. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year. The budgetary data is prepared on the modified accrual basis consistent with the related "actual" amounts.
Department heads submit a proposed budget to the City Administrator. The City Administrator submits a proposed budget to the City Council for the following year beginning July 1. The preliminary budget may or may not be amended by the City Council after public hearings are held and is adopted by City Council resolution prior to July 1 in accordance with the municipal code.
The City Council may amend the budget by motion during the fiscal year. The City Administrator is authorized to transfer budgeted amounts within an object or purpose within any department. However, the City Council must approve revisions that alter the total expenditures of any department. Budgetary control is legally maintained at the fund level.
Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.
Supplemental appropriations, which increase appropriations, may be made during the fiscal year. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Amounts represent the original budgeted amounts and all supplemental appropriations.
City of Gridley
Schedule of Pension Contributions
June 30, 2024
(Last Ten Years)
Miscellaneous & Safety Plan
Fiscal Year Ended 2015 2016 2017 2018 2019
Contractually Required Contributions $ 701,624 $ 795,514 $ 866,010 $ 947,355 $ 1,023,639 Contributions in Relation to
Contractually Required Contributions 701,624 795,514 866,010 947,355 1,023,639 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 3,118,121 $ 3,099,247 $ 3,275,057 $ 3,384,871 $ 2,642,537 Contributions as a % of Covered Payroll 22.50% 25.67% 26.44% 27.99% 38.74% Miscellaneous & Safety Plan
Fiscal Year Ended 2020 2021 2022 2023 2024
Contractually Required Contributions $ 1,128,141 $ 1,293,223 $ 1,420,621 $ 1,570,250 $ 1,622,852 Contributions in Relation to
Contractually Required Contributions 1,128,141 1,293,223 1,420,621 1,570,250 1,622,852 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 2,891,883 $ 3,233,815 $ 3,508,606 $ 3,790,865 $ 3,904,591 Contributions as a % of Covered Payroll 39.01% 39.99% 40.49% 41.42% 41.56% Notes to Schedule:
Valuation Date: June 30, 2022
Assumptions Used: Entry Age Normal Cost Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
Remaining Amortization Period no more than 20 years
Inflation Assumed at 2.30%
Investment Rate of Returns set at 6.8%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.90% in FY2023.
The CalPERS mortality assumptions was adjusted in fiscal year 2023.
The mortality table was developed based on CalPERS-specific data. The post-retirement mortality rates include 15 years of projected on-going mortality improvement using Scale MP 2016 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
City of Gridley
Schedule of Proportionate Share of Net Pension Liability June 30, 2024
(Last Ten Years)
Miscellaneous and Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Proportion of Net Pension
Liability (Safety and Misc) 0.12501% 0.12003% 0.10006% 0.11218% 0.11472% Proportionate Share of
Net Pension Liability $ 7,778,820 $ 8,238,421 $ 8,658,560 $ 11,125,054 $ 11,054,726 Covered Payroll $ 3,079,982 $ 3,118,121 $ 3,099,247 $ 3,275,057 $ 3,384,871 Proportionate Share of NPL
as a % of Covered Payroll 252.56% 264.21% 279.38% 339.69% 326.59% Plan's Fiduciary Net Position
as a % of the TPL 81.15% 71.26% 68.94% 67.62% 68.40%
Miscellaneous and Safety Plan
Plan Measurement Date 2019 2020 2021 2022 2023
Fiscal Year Ended 2020 2021 2022 2023 2024
Proportion of Net Pension
Liability (Safety and Misc) 0.11475% 0.11487% 0.16458% 0.12088% 0.16413% Proportion of Net Pension
Liability (Misc Plan Only) 0.29364% 0.29630% 0.46876% 0.29840% 0.29264% Proportionate Share of
Net Pension Liability $ 11,758,898 $ 12,498,264 $ 8,900,835 $ 13,962,591 $ 14,633,421 Covered Payroll $ 2,642,537 $ 2,891,883 $ 3,233,815 $ 3,508,606 $ 3,790,865 Proportionate Share of NPL
as a % of Covered Payroll 444.99% 432.18% 275.24% 397.95% 386.02% Plan's Fiduciary Net Position
as a % of the TPL 67.37% 65.78% 76.73% 66.11% 65.62%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.90% in FY2023.
The CalPERS mortality assumptions was adjusted in fiscal year 2023.
City of Gridley
Schedule of Changes in Total OPEB Liability
June 30, 2024
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021 2022 2023 2024
Total OPEB liability
Service cost $ 12,401 $ 12,650 $ 171,325 $ 165,106 $ 21,603 $ 22,368 $ 36,324 Interest 158,069 159,756 206,796 211,318 139,337 138,281 127,463 Diff. between expected/actual experience 21,513 16,042 2,401,492 - (3,239,275) - (656,901) Changes of assumptions - - 2,456,638 - (2,618,711) - (41,981) Actuarial adjustments - - - 74,743 (165,484) - -
Benefit payments (148,050) (141,637) (161,908) (84,534) (166,240) (172,125) (149,879) Net change in Total OPEB Liability 43,933 46,811 5,074,343 366,633 (6,028,770) (11,476) (684,974) Total OPEB Liability - beginning 4,489,354 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 3,980,828 Total OPEB Liability - ending 4,533,287 4,580,098 9,654,441 10,021,074 3,992,304 3,980,828 3,295,854 Plan fiduciary net position as a %
of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered Employee Payroll $ 2,726,110 $ 2,780,632 $ 826,218 $ 842,742 $ 258,224 $ 265,971 $ 497,425 TOL as a % of covered employee payroll 166.29% 164.71% 1168.51% 1189.10% 1546.06% 1496.72% 662.58% Other Notes
Mortality assumption changed from SOA RP-2014 Total Dataset Mortality with Scale MP-2019 (Base Rate 2006) to Pub-2010 General Employees Headcount-Weighted Mortality fully generational using Scale MP-2021, and Pub-2010 General Retirees Headcount-Weighted Mortality fully generational using Scale MP-2021.
Payroll growth increased from 3% to 3.5%.
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.
Discount rates changed from 3.58% to 2.21% in FY2020, to 3.54% in FY2022. and then to 3.93% in FY2024.
SUPPLEMENTARY INFORMATION
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NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
FEMA Reserve
This fund is used to account for the FEMA lease revenue.
General Impact Fee
The source of funding is a portion of the impact fees on new developments calculated in the City Fee Schedule. This fund is used for the CIP project per council approval.
Development Agreement Fee
The source of revenue is a portion of the impact fees on new developments calculated in a City fee schedule. The funds will be appropriated for CIP projects upon council approval.
M. Vierra Park
This fund is used to account for the grant funding for the development of M. Vierra Park.
SB 1 RMRA
This fund is used to account for receipts and expenditures of gas tax funds for road repair and maintenance under the California rehab program.
SB 325 TDA
This fund is used to account for receipts and expenditures of monies apportioned for street and road sweeping, repairs, maintenance and other street projects under the street and highway code 2105, 2016, 2107 and 2107.5 of the State of California.
Traffic Safety
This fund is used to account for receipts of motor vehicle fines and forfeitures expended for traffic projects.
Railroad Maintenance
This fund is used to account for expenses related to repairs for the railroad and intersecting streets.
Public Safety Augmentation
This fund is used to account for receipts and expenditure related to safety expenses.
Planning and Development
This fund is used to account for the City's participation in the Community Development Block Grant programs, which provides loans to rehab low income housing and First Time home buyers (generally low income).
Solid Waste Recreation
This fund is used for purchasing beverage trash containers located throughout the City right-of-way and public parks.
Gas Tax
This fund is used to account for receipts and expenditures of monies apportioned for street and road sweeping, repairs, maintenance and other street projects under the street and highway code 2105, 2016, 2107 and 2107.5 of the State of California.
NONMAJOR GOVERNMENTAL FUNDS
Butte Interagency Narcotics Task Force (BINTF)
This fund is used to account for the contribution of funds and service to BINTF.
Maintenance Districts
The funds are used to account for the receipts and expenditures of four districts within the City limit. The assessment of districts is the source of funding.
CDBG Housing Rehab/Drainage Grant
This fund is used to account for revenues and expenditures related to the Community Development Block Grant for housing rehabilitation and drainage.
Cal Home
This fund is used to account for Cal Home grant revenues and expenditures.
Police Explorer
The fund is used to pay the expenditures related to youth programs. Donations and fund raising are the sources of funding.
K-9 - Donations & Expenses
The fund is used to account for City donations and expenses.
Recreation Related
The fund is used to pay the expenditures related to recreational activities funded through the annual budget.
2021 Vierra Park Improvements
This fund is used to account for resources expended on Vierra Park improvements.
Home
This fund is used to account for Home program revenues and expenditures.
Gridley Sports Complex Fund
The fund is used to account for revenue and proceeds used to pay for capital improvement expenditures for the City’s sports complex.
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
General
FEMA Impact Development M. Vierra
Reserve Fee Agreement Park
Fund Fund Fund Fund
ASSETS
Cash and investments $ 477,029 $ 1,148,200 $ 12,190 $ - Accounts receivable - - - -
Due from other governments - - - -
Interest receivable 1,469 3,538 38 -
Taxes receivable - - - -
Due from other funds - - - -
Total assets $ 478,498 $ 1,151,738 $ 12,228 $ -
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ - $ - $ - $ -
Due to other funds - - - -
Total liabilities - - - -
Fund Balances:
Restricted:
Redevelopment - 1,151,738 12,228 -
Grants 478,498 - - -
Taxes and fees - - - -
Community development - - - -
Other - - - -
Unassigned - - - -
Total fund balances 478,498 1,151,738 12,228 -
Total liabilities, deferred inflows of
resources and fund balances $ 478,498 $ 1,151,738 $ 12,228 $ - Cont'd
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Accounts receivable
Due from other governments
Interest receivable
Taxes receivable
Due from other funds
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Grants
Taxes and fees
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
SB 1 SB 325 Traffic Railroad
RMRA TDA Safety Maintenance
Fund Fund Fund Fund
$ 857,689 $ 18,514 $ 4,077 $ -
- - 5,874 -
- 343,173 - -
2,672 - - -
- - - -
- 329,029 - -
$ 860,361 $ 690,716 $ 9,951 $ -
$ - $ - $ - $ -
- 1,226,065 54,102 -
- 1,226,065 54,102 -
- - - -
- - - -
860,361 - - -
- - - -
- - - -
- (535,349) (44,151) -
860,361 (535,349) (44,151) -
$ 860,361 $ 690,716 $ 9,951 $ -
Cont'd
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Accounts receivable
Due from other governments
Interest receivable
Taxes receivable
Due from other funds
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Grants
Taxes and fees
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Butte
Public Planning Solid Interagency
Safety and Waste Gas Narcotics
Augmentation Development Recreation Tax Tac Force
Fund Fund Fund Fund Fund
$ 218,626 $ - $ - $ 22,413 $ 4,421
- - - 372 -
- - - - -
625 - - 853 -
2,549 - - 23,536 -
- - - - -
$ 221,800 $ - $ - $ 47,174 $ 4,421
$ - $ - $ - $ 516 $ -
- 692 - 1,080,207 -
- 692 - 1,080,723 -
- - - - -
- - - - -
221,800 - - - 4,421
- - - - -
- - - - -
- (692) - (1,033,549) -
221,800 (692) - (1,033,549) 4,421
$ 221,800 $ - $ - $ 47,174 $ 4,421
Cont'd
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Accounts receivable
Due from other governments
Interest receivable
Taxes receivable
Due from other funds
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Grants
Taxes and fees
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
K-9
Maintenance Police Donations
Districts Cal Home Explorer & Expense
Fund Fund Fund Fund
$ 67,155 $ - $ 38,529 $ - $ 1,705
- - - - -
- - - - -
275 - - - 5
- - - - -
- - - - -
$ 67,430 $ - $ 38,529 $ - $ 1,710
$ 533 $ - $ - $ - $ -
18,106 - - - -
18,639 - - - -
48,791 - - - -
- - - - -
- - - - -
- - 38,529 - -
- - - - 1,710
- - - - -
48,791 - 38,529 - 1,710
$ 67,430 $ - $ 38,529 $ - $ 1,710
Cont'd
CDBG Housing
Rehab/Drainage
Grant Fund
Special Revenue Funds
City of Gridley
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Accounts receivable
Due from other governments
Interest receivable
Taxes receivable
Due from other funds
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Grants
Taxes and fees
Community development
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
2021 Vierra Gridley Total
Recreation Park Sports Nonmajor
Related Improvements Home Complex Governmental
Fund Fund Fund Fund Funds
$ 6,305 $ 740 $ 86,295 $ - $ 2,963,888
- - 571 - 6,817
- - - - 343,173
- 164 - - 9,639
- - - - 26,085
488 - - - 329,517
$ 6,793 $ 904 $ 86,866 $ - $ 3,679,119
$ - $ - $ - $ - $ 1,049
- 52,120 97,081 70,065 2,598,438
- 52,120 97,081 70,065 2,599,487
- - - - 1,212,757
- - - - 478,498
- - - - 1,086,582
6,793 - - - 45,322
- - - - 1,710
- (51,216) (10,215) (70,065) (1,745,237)
6,793 (51,216) (10,215) (70,065) 1,079,632
$ 6,793 $ 904 $ 86,866 $ - $ 3,679,119
Concluded
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
General
FEMA Impact Development M. Vierra
Reserve Fee Agreement Park
Fund Fund Fund Fund
REVENUES
Taxes and assessments $ - $ - $ - $ -
Licenses, permits and fees - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Charges for services - 1,710 - -
Use of money and property 9,191 22,128 236 -
Other revenue - - - -
Total Revenues 9,191 23,838 236 -
EXPENDITURES
Current:
Streets and public works - - - -
Community development - - - -
Parks and recreation - - - -
Capital outlay - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 9,191 23,838 236 -
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - (28,567)
Total Other Financing Sources (Uses) - - - (28,567)
Net Change in Fund Balances 9,191 23,838 236 (28,567)
Fund Balances Beginning 469,307 1,127,900 11,992 28,567 Prior Period Adjustments - - - -
Fund Balances Beginning, as Adjusted 469,307 1,127,900 11,992 28,567 Fund Balances Ending $ 478,498 $ 1,151,738 $ 12,228 $ - Cont'd
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Adjustments
Fund Balances Beginning, as Adjusted
Fund Balances Ending
SB 1 SB 325 Traffic Railroad
RMRA TDA Safety Maintenance
Fund Fund Fund Fund
$ 160,837 $ 129,050 $ - $ -
- - - -
- - 28,747 -
- - - -
- - - -
16,269 - - -
- - - -
177,106 129,050 28,747 -
- 83,866 21,317 -
- - - -
- - - -
- 1,441 - -
- 85,307 21,317 -
177,106 43,743 7,430 -
- - - -
- - - (11,101)
- - - (11,101)
177,106 43,743 7,430 (11,101)
683,255 (465,928) (51,581) 11,101
- (113,164) - -
683,255 (579,092) (51,581) 11,101
$ 860,361 $ (535,349) $ (44,151) $ -
Cont'd
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Adjustments
Fund Balances Beginning, as Adjusted
Fund Balances Ending
Butte
Public Planning Solid Interagency
Safety and Waste Gas Narcotics
Augmentation Development Recreation Tax Tac Force
Fund Fund Fund Fund Fund
-$ -$ -$ 229,946 $ -$
- 15,803 - - -
- - - - -
31,808 - - 96,081 -
- - - - -
3,843 - - 5,400 -
- 303 - 3,769 266
35,651 16,106 - 335,196 266
- - - 427,800 -
- 262,220 - - -
- - - - -
- - - 4,378 -
- 262,220 - 432,178 -
35,651 (246,114) - (96,982) 266
- 1,597,545 57,646 - -
- - - - -
- 1,597,545 57,646 - -
35,651 1,351,431 57,646 (96,982) 266
186,149 (1,352,123) (57,646) (936,567) 4,155
- - - - -
186,149 (1,352,123) (57,646) (936,567) 4,155
$ 221,800 $ (692) -$ $ (1,033,549) $ 4,421
Cont'd
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Adjustments
Fund Balances Beginning, as Adjusted
Fund Balances Ending
K-9
Maintenance Police Donations
Districts Cal Home Explorer & Expense
Fund Fund Fund Fund
$ 140,834 -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- - - - -
1,719 1 1 2 29
- - - - -
142,553 1 1 2 29
75,910 - - - -
- - - - -
- - - - -
- - - - -
75,910 - - - -
66,643 1 1 2 29
- - 19,264 - -
- (119) - (657) -
- (119) 19,264 (657) -
66,643 (118) 19,265 (655) 29
(17,852) 118 19,264 655 1,681
- - - - -
(17,852) 118 19,264 655 1,681
$ 48,791 -$ $ 38,529 -$ $ 1,710
Cont'd
CDBG Housing
Rehab/Drainage
Grant Fund
Special Revenue Funds
City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
REVENUES
Taxes and assessments
Licenses, permits and fees
Fines and forfeitures
Intergovernmental
Charges for services
Use of money and property
Other revenue
Total Revenues
EXPENDITURES
Current:
Streets and public works
Community development
Parks and recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Prior Period Adjustments
Fund Balances Beginning, as Adjusted
Fund Balances Ending
2021 Vierra Gridley Total
Recreation Park Sports Nonmajor
Related Improvements Home Complex Governmental
Fund Fund Fund Fund Funds
$ - $ - $ - $ - $ 660,667
10,698 - - - 26,501
- - - - 28,747
- - - - 127,889
- - - - 1,710
639 904 3,150 - 63,512
50,301 - - - 54,639
61,638 904 3,150 - 963,665
- - - - 608,893
- - 65,832 70,065 398,117
229,008 - - - 229,008
- - - - 5,819
229,008 - 65,832 70,065 1,241,837
(167,370) 904 (62,682) (70,065) (278,172)
1,901,305 - 149,548 3,725,308 -
(86) - - - (40,530)
1,901,219 - 149,548 - 3,684,778
1,733,849 904 86,866 (70,065) 3,406,606
(1,728,721) (52,120) (97,081) - (2,215,475)
1,665 - - - (111,499)
(1,727,056) (52,120) (97,081) - (2,326,974)
$ 6,793 $ (51,216) $ (10,215) $ (70,065) $ 1,079,632
Concluded
Special Revenue Funds
NONMAJOR ENTERPRISE FUNDS
The Drainage Fund is used to account for the activities of the City's drainage operations.
The Solid Waste Fund is used to account for the activities of the City's solid waste operations.
The Senior Taxi Fund is used to account for the activities of the City's senior taxi operations.
City of Gridley
Combining Statement of Net Position
Proprietary Funds
June 30, 2024
Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
ASSETS
Current assets:
Cash and investments $ - $ - $ 124,489 $ 124,489
Due from other governments - - 90,434 90,434
Interest receivable - - 396 396
Due from other funds - - 244,323 244,323
Total assets $ - $ - $ 459,642 $ 459,642
DEFERRED OUTFLOWS OF RESOURCES
Pension adjustments $ - $ - $ 181,072 $ 181,072
Total deferred outflows of resources $ - $ - $ 181,072 $ 181,072
LIABILITIES
Current liabilities:
Accounts payable $ - $ - $ 2,428 $ 2,428
Due to other funds - - 329,029 329,029
Compensated absences, current - - 7,168 7,168
Total current liabilities - - 338,625 338,625
Noncurrent liabilities:
Net pension liability - - 445,990 445,990
Compensated absences, noncurrent - - 16,387 16,387
Total noncurrent liabilities - - 462,377 462,377
Total liabilities $ - $ - $ 801,002 $ 801,002
DEFERRED INFLOWS OF RESOURCES
Pension adjustments $ - $ - $ 52,985 $ 52,985
Total deferred inflows of resources $ - $ - $ 52,985 $ 52,985
NET POSITION
Unrestricted $ - $ - $ (213,273) $ (213,273)
Total net position $ - $ - $ (213,273) $ (213,273)
The accompanying notes are an integral part of these financial statements.
Business-Type Activities
Enterprise Funds
City of Gridley
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2024
Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
OPERATING REVENUES
Charges for services $ - $ - $ 3,142 $ 3,142
Intergovernmental - - 304,555 304,555
Other revenue - - 2,643 2,643
Total operating revenues - - 310,340 310,340
OPERATING EXPENSES
Salaries and benefits - - 295,953 295,953
Materials and supplies - - 12,158 12,158
Repairs and maintenance - - 1,898 1,898
Power and utilities - - 511 511
Administration - - 16,929 16,929
Depreciation and amortization - - 6,635 6,635
Total operating expenses - - 334,084 334,084
Operating income (loss) - - (23,744) (23,744)
NONOPERATING REVENUES(EXPENSES)
Interest income - - 2,722 2,722
Total nonoperating revenues(expenses) - - 2,722 2,722
Income (loss) before transfers - - (21,022) (21,022)
TRANSFERS
Transfers out (2,749) (984) - (3,733)
Net contributions and transfers (2,749) (984) - (3,733) Change in net position (2,749) (984) (21,022) (24,755)
Total net position - beginning 2,749 984 (221,380) (217,647) Prior period adjustments - - 29,129 29,129
Total net position - beginning , as adjusted 2,749 984 (192,251) (188,518) Total net position - ending $ - $ - $ (213,273) $ (213,273) The accompanying notes are an integral part of these financial statements.
Business-Type Activities
Enterprise Funds
City of Gridley
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Solid Senior
Drainage Waste Taxi
Fund Fund Fund Total
Cash flows from operating activities:
Receipts from customers $ - $ - $ 220,838 $ 220,838
Payments to suppliers - - (1,504) (1,504)
Payments to employees - - (137,017) (137,017)
Net cash provided (used) by operating activities - - 82,317 82,317 Cash flows from noncapital financing activities:
Interfund transactions (2,749) (984) (244,323) (248,056) Net cash provided (used) by noncapital financing activities (2,749) (984) (244,323) (248,056) Cash flows from investing activities:
Investment income received 7 15 3,091 3,113
Net cash provided (used) by investing activities 7 15 3,091 3,113 Net increase (decrease) in cash and cash equivalents (2,742) (969) (158,915) (162,626) Cash and cash equivalents - beginning 2,742 969 283,404 287,115 Cash and cash equivalents - ending $ - $ - $ 124,489 $ 124,489 Reconciliation of operating income to net cash provided (used) by operating activities:
Operating income (loss) $ - $ - $ (23,744) $ (23,744)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation - - 6,635 6,635
Prior period adjustments - - 29,129 29,129
Changes in operating assets and liabilities:
Accounts receivables - - 932 932
Due from other governments - - (90,434) (90,434)
Deferred outflows of resources - - (20,013) (20,013)
Accounts payable - - 863 863
Net pension liability - - 160,101 160,101
Compensated absences - - 2,337 2,337
Deferred inflows of resources - - 16,511 16,511
Net cash provided (used) by operating activities $ - $ - $ 82,317 $ 82,317 The accompanying notes are an integral part of these financial statements.
Business-Type Activities
Enterprise Funds
PRIVATE PURPOSE TRUST FUNDS
Private Purpose Trust Funds
These funds include the Main Trust and Successor Agency.
The Main Trust Fund is used to account for trust arrangements where the balances and activity benefit individuals and organizations other than the City.
The Successor Agency Fund was created as a result of the State order to dissolve California Redevelopment Agencies. As the Successor Agency, this fund is used to track the activity by the Oversight Board and the Department of Finance to dissolve the Agency.
City of Gridley
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2024
Main Successor
Trust Agency
Fund Fund Total
ASSETS
Cash and investments $ - $ 1,116,572 $ 1,116,572
Restricted cash and investments - 16,366 16,366
Interest receivable - 671 671
Capital assets, land - 1,302,116 1,302,116
Total assets $ - $ 2,435,725 $ 2,435,725
DEFERRED OUTFLOWS OF RESOURCES
Loss on debt refunding $ - $ 150,304 $ 150,304
LIABILITIES
Accounts payable $ - $ 5,130 $ 5,130
Interest payable - 81,885 81,885
Unearned revenue - 305,725 305,725
Advances from the City - 326,868 326,868
Long-term liabilities, current - 120,000 120,000
Long-term liabilities, noncurrent - 3,850,000 3,850,000 Total liabilities $ - $ 4,689,608 $ 4,689,608
NET POSITION
Held in trust for private purposes $ - $ (2,103,579) $ (2,103,579) Total net position $ - $ (2,103,579) $ (2,103,579)
City of Gridley
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Year Ended June 30, 2024
Main Successor
Trust Agency
Fund Fund Total
ADDITIONS
Property taxes $ - $ 466,740 $ 466,740
Interest Income - 4,573 4,573
Total additions - 471,313 471,313
DEDUCTIONS
Professional services - 78,096 78,096
Administrative expense - 3,542 3,542
Payments to the City of Gridley 12,895 - 12,895
Interest and fiscal charges - 194,382 194,382
Total deductions 12,895 276,020 288,915
Change in net position (12,895) 195,293 182,398
Total net position - beginning 12,895 (2,298,872) (2,285,977) Total net position - ending $ - $ (2,103,579) $ (2,103,579) This page is intentionally blank
CUSTODIAL FUNDS
Custodial Funds
The City administers two custodial funds, the Gridley Bid Fund and the Hospital JPA Administration Fund.
The Gridley Bid Fund is used to account for the use of resources received in relation to bidding and procurement.
The Hospital JPA Administration Fund is used to account for the use of resources held for the Hospital HPA administration.
City of Gridley
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
Hospital
Gridley JPA
Bid Administration
Fund Fund Total
ASSETS
Cash and investments $ - $ - $ -
Total assets $ - $ - $ -
NET POSITION
Restricted for individuals, organizations and
other governments $ - $ - $ -
Total net position $ - $ - $ -
City of Gridley
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2024
Hospital
Gridley JPA
Bid Administration
Fund Fund Total
ADDITIONS $ - $ - $ -
DEDUCTIONS
Payments to the City of Gridley 61 499 560
Change in net position (61) (499) (560)
Total net position - beginning 61 499 560
Total net position - ending $ - $ - $ -
This page is intentionally blank
GENERAL FUND COMBINING SCHEDULES
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.
City of Gridley
Combining Balance Sheet
General Fund
June 30, 2024
General City
Fund Hall Equipment Total
General Reserve Well Reserve Reserve General
Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 436,866 $ 3,207,514 $ 41,382 $ 89,986 $ 1,800,118 $ 5,575,866 Accounts receivable 87,298 - - - - 87,298
Interest receivable 1,061 10,024 128 272 5,363 16,848
Taxes receivable 386,842 - - - - 386,842
Due from other funds 2,353,627 - - - - 2,353,627
Prepaid items 57,768 - - - - 57,768
Leases receivable 327,331 - - - - 327,331
Advances to fiduciary funds 76,868 - - - - 76,868
Total assets $ 3,727,661 $ 3,217,538 $ 41,510 $ 90,258 $ 1,805,481 $ 8,882,448
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ 470,398 $ - $ - $ - $ - $ 470,398
Unearned revenue 24,101 - - - - 24,101
Deposits payable 56,850 - - - - 56,850
Total liabilities 551,349 - - - - 551,349
Deferred Inflows of Resources:
Leases 320,681 - - - - 320,681
Total deferred inflows of resources 320,681 - - - - 320,681 Fund Balances:
Nonspendable
Leases receivable 6,650 - - - - 6,650
Advances to fiduciary funds 76,868 - - - - 76,868
Prepaid items 57,768 - - - - 57,768
Total nonspendable 141,286 - - - - 141,286
Committed:
Infrastructure reserve - - 41,510 - - 41,510
Total committed - - 41,510 - - 41,510
Assigned:
Bond reserve - 3,217,538 - - - 3,217,538
Sick payout reserve - - - - - -
Equipment replacement - - - - 1,805,481 1,805,481
Building maintenance - - - 90,258 - 90,258
Total assigned - 3,217,538 - 90,258 1,805,481 5,113,277 Unassigned 2,714,345 - - - - 2,714,345
Total fund balances 2,855,631 3,217,538 41,510 90,258 1,805,481 8,010,418 Total liabilities, deferred inflows of
resources and fund balances $ 3,727,661 $ 3,217,538 $ 41,510 $ 90,258 $ 1,805,481 $ 8,882,448 City of Gridley
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2024
General City Sick Leave
Fund Hall Equipment Payout Total
General Reserve Well Reserve Reserve Reserve General
Fund Fund Fund Fund Fund Fund Eliminations Fund
REVENUES
Taxes and assessments $3,283,264 $ - $ - $ - $ - $ - $ - $ 3,283,264 Licenses, permits and fees 209,920 - - - - - - 209,920
Fines and forfeitures 10,525 - - - - - - 10,525
Intergovernmental 220,474 - - - - - - 220,474
Charges for services 63,780 - - - - - - 63,780
Use of money and property 171,944 62,701 800 1,699 34,722 (1) - 271,865 Other revenue 213,185 - - - - - - 213,185
Total Revenues 4,173,092 62,701 800 1,699 34,722 (1) - 4,273,013
EXPENDITURES
Current:
General government 214,850 - - - - - - 214,850
Public safety 5,456,407 - - - - - - 5,456,407
Streets and public works 432,079 - - - - - - 432,079
Community development 65,189 - - - - - - 65,189
Parks and recreation 141,244 - - - - - - 141,244
Capital outlay 156,918 - - - 500,000 - - 656,918
Total Expenditures 6,466,687 - - - 500,000 - - 6,966,687 Excess (Deficiency) of
Revenues over Expenditures (2,293,595) 62,701 800 1,699 (465,278) (1) - (2,693,674)
OTHER FINANCING SOURCES (USES)
Transfers in 1,653,849 - - - - - (177,332) 1,476,517
Transfers out (3,930,222) - - - - (177,332) 177,332 (3,930,222) Total Other Financing Sources (Uses) (2,276,373) - - - - (177,332) - (2,453,705) Net Change in Fund Balances (4,569,968) 62,701 800 1,699 (465,278) (177,333) - (5,147,379) Fund Balances Beginning 7,214,971 3,154,837 40,710 88,559 2,270,759 177,333 - 12,947,169 Prior Period Adjustments 210,628 - - - - - - 210,628
Fund Balances Beginning, as Adjusted 7,425,599 3,154,837 40,710 88,559 2,270,759 177,333 - 13,157,797 Fund Balances Ending $2,855,631 $3,217,538 $ 41,510 $ 90,258 $1,805,481 $ - $ - $ 8,010,418 City Council Agenda Item #3
Staff Report
Date: May 5, 2025
To: Mayor and City Council
From: Elisa Arteaga, City Administrator
Subject: Notice of Completion for State Route 99 Waterline Relocation Project – Project No. 24-01
Recommendation
City staff respectfully recommends that the City Council authorize the City Administrator to accept, on behalf of the City, the construction contract No. 24-01 for the construction of the Gridley State Route 99 – Waterline Relocation Project as complete and issue the Notice of Complication.
Background
Construction work for the Waterline Relocation Project has been completed. A final walk through was completed on March 17, 2025, with the contractor and the consulting Resident Engineer and a final punch list was generated, with very minor work to be completed in coordination with the Caltrans project lane closures. The Punch List items were completed the week of April 21, 2025. Caltrans provided written approval of the work and deemed the project complete per the Encroachment Permit requirements on April 11, 2025.
The contract bonds and the final payment of retention will be held until any pending subcontractor payments have been resolved. The contractor has provided final invoice to the City.
Staff is requesting that the Council authorize the City Administrator to accept the completion of the construction contract for the State Route 99 Waterline Relocation Project and issue the Notice of Completion (NOC).
Financial Impact
Below is a breakdown of the project costs, including Construction, Inspection, and Engineering.
Construction – R&R Horn
Initial Construction Budget
with Contingency: $1,144,550.00
Original Contract Price: $1,040,500.00
Net Change by Change Orders: $43,574.22
Contract Total: $1,084,074.22
Final Contract Amount Billed: $1,084,074.22
Paid to Date: $843,486.00 pay Request #1 and #2
Pay Request #3: $173,881.35
Pay Request #4: $12,503.16
Retention Owed: $54,203.71
X Regular
Special
Closed
Emergency
Construction Under Budget by: $60,475.78
Construction Management and Inspection – 4 Leaf
Initial CM/ Inspection Budget
With Contingency: $125, 000.00
Original Contract: $113,867.00
Billed to Date: $96,651.44
Estimated for Project
Closeout: $2,256 (12 hrs x $188/hr)
Total Inspection Cost: $96,907.44
Inspection Under Budget by: $28,092.56
Engineering (Design Caltrans Coordination, Construction Support) – BenEn Initial Engineering Budget: $210,000.00
Original Contract: $206,105.00
Billed to Date: $186,752.61
Estimated for Project
Closeout: $4,500 (includes hours in April for As-built drawing and estimated hours for final project closeout documentation in May)
Total Engineer Cost: $191,252.61
Engineering Under Budget by $18,874.39
Total Project Budget: $1,479,550.00
Total Project Cost: $1,372,234.27
Under Budget by: $107,315.73
Compliance with City Council Strategic Plan or Budget Goals The City Council and City staff are committed to providing effective leadership while providing quality cost-effective local government services.
Attachments – Notice of Completion
State Route 99 – Waterline Replacement Project
Notice of Completion
AFTER RECORDING, PLEASE RETURN TO:
Attention: Elisa Arteaga,
City Administrator
City of Gridley
Mailing Address:
685 Kentucky St
Gridley, CA 95948
City of Gridley
NOTICE OF COMPLETION OF WORK ON
State Route 99 – Waterline Relocation Project – Project No. 24-01 (Civil Code Section 3093)
NOTICE IS HEREBY GIVEN by the City of Gridley, as owner of the improvements hereinafter described, of the completion of that certain work, to wit:
The replacement and relocation of water mainline pipe, fire hydrants, water services, valves, and appurtenances located in the State Route 99 right of way within the City of Gridley.
That the pertinent facts relating to such completion as required by Section 3093 of the California Civil Code are as follows:
1. The date of the completion of said work is: March 17, 2025
2. The name and address of the owner is:
City of Gridley
685 Kentucky St
Gridley, CA 95948
3. The nature of the interest of estate of said owner is: Utility Easement within the State Right of Way.
4. A description of the real property upon which said work was completed is as follows:
Underground utilities within the northbound travel way and shoulder of California State Route 99, postmile BUT R3.24 to BUT R3.74 within the city limits of City of Gridley, Butte County .
5. The name of the original contractor is:
Quin Hogan, Vice President
R&R Horn Contractors Inc.
PO Box 6697
Chico, CA 95927
The name of the surety is:
The Ohio Casualty Insurance Company
1011 4th Ave. Ste. 3800
Seattle, WA 98154
State Route 99 – Waterline Replacement Project
Notice of Completion
6. A general state of the kind of work done or materials furnished pursuant to said contract is as follows: Construct and provide materials and equipment as required by the State Route 99 – Waterline Replacement Project plans and specifications.
City of Gridley
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that if called as a witness to testify, I could competently testify to these matters from my own personal knowledge. Executed this day of May 6, 2025, at Gridley, California.
Elisa Arteaga, City Administrator
STATE OF CALIFORNIA
COUNTY OF BUTTE
City Council Agenda Item #4
Staff Report
Date: May 5, 2025
To: Mayor and City Council
From: Chip Fowler, Fire Chief
Subject: Adoption of 2025 Butte County Community Wildfire Protection Plan Recommendation
Staff respectfully request the City Council to adopt the 2025 Butte County Community Wildfire Protection Plan and authorize the Mayor to sign the signatory page.
Background
The Butte County Community Wildfire Protection Plan (CWPP) is a collaborative effort county wide to identify and prioritize hazardous fuel treatments and identify measures to reduce structure ignitability. Some of the items included in the CWPP are our collaborators and stakeholders, overviews of our communities and fire departments, priorities for each Battalion and City, project list, maps, ignition analysis and ignition management plans. The 2025 CWPP is the first complete re-write in nearly 20 years.
Financial Impact
Adopting the CWPP has no financial impact on the City of Gridley.
Attachment:
- CWPP Gridley pdf
- CWPP Full pdf (due to its size, this attachment will be available upon request and also displayed at City Hall Administration counter for public review) X Regular
Special
Closed
Emergency
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City Council Agenda Item #5
Staff Report
Date: May 5, 2025
To: Mayor and Council
From: Utility Director Ross Pippitt
Subject: Washington Street Parking Spaces Painting
Recommendation
Staff respectfully requests that the City Council provide direction to the Public Works Department regarding the painting of parking spaces on Washington Street, between Norman Street and the southern end leading into the baseball field parking area.
Background
Mike Dahl of the Lions Club has requested that the City consider painting diagonal parking spaces on the east side of Washington Street near the Lions Club. I spoke with Police Chief and the City Engineer, and we all agreed that diagonal parking could be appropriate, provided it does not pose a traffic safety concern.
However, implementing diagonal parking on the east side would require both sides of Washington Street to be converted to diagonal parking to provide enough space for vehicle maneuvering. This change would mean that Caldwell Cabinets employees must park diagonally rather than at a 90-degree angle as they currently do.
Additionally, City Engineer Harden mentioned drivers parking on the east side would need to turn around at the Vierra Park entrance and return northbound in order to access the diagonal spaces— similar to the current approach required for parallel parking on that side. The proposed change to diagonal parking is expected to increase the overall number of available parking spaces in the area.
Financial Impact
The proposed work would be completed by City staff and incorporated into the Capital Improvement Plan (CIP) for the upcoming budget year.
Compliance with City Council Strategic Plan or Budget Goals This recommendation is consistent with our ongoing effort to be responsive and transparent regarding all business transactions and financial matters.
Attachments: (1) Site Plan
X Regular
Special
Closed
Emergency