Hanford City Council
June 4, 2024

City of Hanford

Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -28-
Sewer Improvement Funds
Water System Wastewater Storm Drain Refuse
Fund Fund Fund Fund

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) 588,859 $ (37,057) $ (385,004) $ (739,275) $ Adjustments to reconcile net income (loss) from
operating to net cash provided (used) by
operating activities:

Depreciation 2,299,013 1,788,007 337,586 697,244 Changes in assets, liabilities, and deferred resources in:

Receivables 213,015 78,942 (12,380) (166,086) Deposits - 4,000 - - Prepaid expenses 8,918 (308,221) 1,074 6,300 Inventory 11,502 - - - Deferred outflows of resources 519,790 435,428 210,289 1,020,174 Accounts payable 1,960,146 22,714 (2,740) (245,407) Salaries and benefits payable 23,515 15,518 5,473 24,820 Compensated absences 25,585 10,324 9,821 25,057 Deposits and unearned revenue (4,965) (4,386) (75) (480) Claims payable - - - - Net OPEB liability 1,508,439 843,814 - 1,333,616 Net pension liability (10,208) (103,482) 471,617 (502,347) Deferred inflows of resources (1,129,562) (741,803) (248,914) (1,398,262) Net cash provided (used) by operating activities 6,014,047 $ 2,003,798 $ 386,747 $ 55,354 $

SCHEDULE OF NON-CASH CAPITAL AND RELATED

FINANCING ACTIVITIES
Contributed Capital 2,289,780 $ 1,285,875 $ 1,578,449 $ - $

City of Hanford

Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023 (concluded)

The accompanying notes are an integral part of these financial statements. -29-
Governmental
Total Activities
Airport Intermodal Courthouse Enterprise Internal
Fund Fund Square Funds Fund

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (302,562) $ (15,002) $ (9,215) $ (899,256) $ 26,749 $ Adjustments to reconcile net income (loss) from
operating to net cash provided (used) by
operating activities:

Depreciation 324,084 26,116 - 5,472,050 1,424,062 Changes in assets, liabilities, and deferred resources in:

Receivables 75 (32,126) 1,414 82,854 (22,977) Deposits - - - 4,000 (10,000) Prepaid expenses - - - (291,929) (2,413) Inventory - - - 11,502 649,822 Deferred outflows of resources - - - 2,185,681 596,998 Accounts payable (17,631) 49 1,413 1,718,544 660,589 Salaries and benefits payable 847 - - 70,173 (385,450) Compensated absences - - - 70,787 (5,830) Deposits and unearned revenue - - - (9,906) - Claims payable - - - - 187,000 Net OPEB liability - - - 3,685,869 - Net pension liability - - - (144,420) 364,190 Deferred inflows of resources - - - (3,518,541) (749,254)

Net cash provided (used) by operating activities 4,813 $ (20,963) $ (6,388) $ 8,437,408$ 2,733,486 $

SCHEDULE OF NON-CASH CAPITAL AND RELATED

FINANCING ACTIVITIES
Contributed Capital - $ - $ - $ - $ - $ Non-major Funds

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FIDUCIARY FUNDS

FINANCIAL STATEMENTS

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City of Hanford

Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023

The accompanying notes are an integral part of these financial statements. -30-
Redevelopment
Successor Agency
Private Purpose Trust and
Trust Fund Custodial Funds
ASSETS
Cash and investments 240,178 $ 1,774,746 $ Accounts receivable - 18,920
Assets held for resale 135,265 -
Total assets 375,443 1,793,666

LIABILITIES
Accounts payable - 504,623
Deposits held for others - 1,265,299 Total liabilities - 1,769,922

FIDUCIARY NET POSITION
Held in trust for the retirement of obligations of the
former Hanford Redevelopment Agency and
other purposes 375,443 -
Restricted - 23,744
Total fiduciary net position 375,443 $ 23,744 $

City of Hanford

Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -31-
Redevelopment
Successor Agency
Private-Purpose Trust and
Trust Fund Custodial Fund

ADDITIONS
Investment earnings 6,073 $ - $
Unrealized gain/(loss) on investments (1,205) 52,478 Other additions - 10,176
Total additions 4,868 62,654

DEDUCTIONS
General government 228 250
Total deductions 228 250
Change in fiduciary net position 4,640 62,404

NET POSITION (DEFICIT)
Beginning of year, restated 370,803 (38,660) End of year 375,443 $ 23,744 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements of the City of Hanford, California (the City) have been prepared in conformity with U.S. Generally Accepted Accounting principles as prescribed by the Governmental Accounting Standards Board (GASB).

The accompanying financial statements present the financial position of the City and the various funds and fund types, the results of operations of the City and the various funds and fund types, and the cash flows of the proprietary funds. The financial statements are presented as of June 30, 2023 and for the year then ended.

Description of the Reporting Entity

The City was incorporated as a General Law city in 1891. The City operates under a Council- Administrator form of government and provides the following services: Public safety (police and fire), community development, community services , public works, cultural, general administrative services, and capital improvements.

As required by accounting principles generally accepted in the United States of America, these financial statements present the City (the primary government) and its component units. The component units discussed below is included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. However, elected officials of the City have a continuing accountability for fiscal matters of the other entities. The financial reporting entity consists of: (1) the City (2) organizations for which the City is financially accountable and (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, component unit balances and transactions are reported in a manner similar to the balances and transactions of the City. A component unit is presented on a blended basis component unit’s governing body is substantially the same as the City’s or the component unit provides services almost entirely to the City; otherwise, the component unit is presented discretely.

Blended Component Unit

The financial statements of the City include the financial activities of the City as well as of the Hanford Improvement Corporation. Although the H anford Improvement Corporation is a legally distinct unit from the City, their financial operations are overseen by the City and the City Council is the board of directors of the Corporation.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-33-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Presentation

Government-Wide Financial Statements

The Government-wide financial statements (the Statement of Net Position and the Statement of Activities) report information of all of the non-fiduciary activities of the primary government and its component units. For the most part, eliminations have been made to minimize the double counting on internal activities. These statements distinguish between the governmental and business type activities of the City. Governmental activities, which normally are supported by taxes and inter- governmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and of reach function of the City’s governmental activities. Direct expenses ar e those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Net Position are restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental Fund Financial Statements

The fund financial statements provide information about the City’s funds, with separate statements presented for each fund category - governmental, proprietary, and fiduciary . The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

The City reports the following major governmental funds:

General Fund – The General Fund is the principle operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds. For the City, the General Fund includes basic govern mental activities such as general government, public safety, public works, recreation and community development.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-34-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Presentation (Continued)

CDBG Home/Housing Fund – This fund is used to receive and disburse funds in accordance with grants received from the Department of Housing and Urban Development for the repair and improvement of targeted housing areas.

Transportation Development Act Fund – This fund is used to account for financial resources to be used for transit and non-transit related purposes that comply with regional transportation plans. The City has elected to present this fund as a major fund.

American Rescue Plan Act Fund – This fund is used to account for financial resources provided by the American Rescue Plan Act.

The City reports the following major enterprise funds:

Water System Fund – The Water System Fund is used to account for the financial activities of water utility of the City.

Wastewater Fund – The Wastewater Fund is used to account for financial activities of sewage collection and wastewater treatment utility of the City.

Storm Drain Fund – The Storm Drain Fund is used to account for the financial activities of the City’s storm drains.

Refuse Fund – The Refuse Fund is used to account for the financial activities of the collection of solid waste and disposal utility of the City.

The City presents the following non-major enterprise funds:

Airport Fund – To account for all activities necessary to provide an airport to the residents of the City and surroundings areas.

Intermodal Fund – The Intermodal Fund is used to account for the financial activities of a building used to support state regional and local transportation.

Courthouse Square Fund – The Courthouse Square Fund is used to account for the financial activities of the maintenance and improvement of the property known as the Courthouse Square in downtown Hanford.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-35-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Presentation (Continued)

The City reports the following fund types in aggregate as part of other non-major governmental funds:

Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Capital Projects Fund – Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those finances by proprietary funds.

Additionally, the City reports the following fund types:

Internal Service Funds – Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of the City to another on a cost- reimbursement basis.

Private-Purpose Trust Fund – The Private Purpose Trust Fund is used to account for the activities of the former Hanford Redevelopment Agency during the wind down period.

Trust and Custodial Funds – Trust and Custodial Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations and/or other governments.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

In accordance with generally accepted accounting principles the Statement of Net Position reports separate sections for Deferred Outflows of Resources and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources – This amount represents outflows of resources (consumption of net assets) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources – This amount represents inflows of resources (acquisition of net assets) that apply to future periods and that, therefore, are not recognized as a revenue until that time.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-36-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Basis of Presentation (Continued)

The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual ba sis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual acc ounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary funds distinguish operating re venues and expenses from non-operating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operation. Revenues and expenses not meeting this definition are reported as non-operating.

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items

Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the City considers all short term and highly liquid investments (including restricted assets) to be cash and cash equivalents, as reported on the Statement of Net Position and Balance Sheet as cash and investments.

Investments

Investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale).

Further cash and investment disclosures are presented in Note 2.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-37-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Interfund Transactions

Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and 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). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government wide financial statement as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be a market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Receivables

In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the governmental activities include intergovernmental and tax revenue receivable. Business-type activities report trade and intergovernmental revenue as their major receivables.

Inventory

Inventories of materials and supplies in the proprietary and internal services funds are valued at the lower of cost or market, carried on a first-in, first-out (FIFO) basis.

Capital Assets

The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

In the government-wide financial statements and propr ietary fund statements, capital assets are presented on the statement of net position and valued at historical cost or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at acquisition value at the date of acquisition.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-38-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

The City’s capitalization threshold is $10,000. In other words, capital assets are capitalized only if they have a cost in excess of $10,000 and have an expected useful life of three years or more.

Capital assets that have a cost below $10,000 are expended during the fiscal year they are acquired.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Betterm ents and major improvements which significantly increase values, change capacities or extend useful lives are capitalized.

Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of assets is as follows:

Infrastructure 20 to 50 years
Buildings 20 to 50 years
Improvements other than buildings 20 to 50 years
Machinery and equipment 4 to 20 years

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

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.

Compensated Absences

It is the City’s policy to permit employees to accumulate earned but unsaved vacation, sick pay benefits and compensatory time. All vacation and compensatory pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements. For additional information regarding compensated absences, see Note 7.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-39-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when paid. 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 financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

Issuance costs, whether withheld from the actual debt proceeds received or not, are reported as debt service expenditures.

Leases

The City is a lessee for noncancelable leases of copiers and recognizes the liability and an intangible right-to-use lease asset at the inception of the lease agreement at the current present value of future payments, in the government-wide and proprietary fund financial statements. The City recognizes lease liabilities with an initial, individual value of $25,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-40-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Key estimates and judgements related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases, which it has determined is the prime rate at the inception of the lease.

 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

The City is a lessor for noncancelable leases of the Hanford train station, hotel parking spaces, and agricultural ground leases. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide, proprietary fund, and governmental fund financial statements at the inception of the lease agreement at current present value of all future payments.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgements include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

 The City uses the interest rate charges to the lessees as the discount rate. When the interest rate charged the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return cannot be determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease.

 The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-41-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of lease receivable.

Right-to-Use Lease / Subscription Based Information Technology Arrangements (SBITA) Assets

Right-to-use lease/SBITA assets are recorded at the amount of the initial measurement of the lease/SBITA liabilities and modified by any lease payment made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service.

Right-to-use lease/SBITA assets are amortized using the straight-line method over the shorter of the lease term or the useful life on the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised.

Other Post-employment Benefits (OPEB)

For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, have been determined by an independent actuary.

For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

OPEB
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period June 30, 2022 to June 30, 2023

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-42-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

CalPERS
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period June 30, 2021 to June 30, 2022

Net Position

In the government-wide financial statements and pr oprietary fund financial statements, net position is classified as follows:

 Net investment in capital assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

 Restricted net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constructional provisions or enabling legislation.

 Unrestricted net position – This category represents net position of the City, not restricted for any project or other purpose.

When expenses are incurred for purposes for which both restricted and unrestricted net position is available, the City's policy is to apply restricted net position first.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-43-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Fund Balance

In the fund financial statements, governmental funds report fund balances as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.

 Nonspendable fund balance – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact.  Restricted fund balance – amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.  Committed fund balance – amounts that can only be used for specific purposes determined by formal action of the City’s highest leve l if decision-making authority (the City Council) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.  Assigned fund balance – amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established by either the highest level of decision making, or by a body or an official designated for that purpose.  Unassigned fund balance – the residual classification for the City’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.

The City Council establishes, modifies or resc inds fund balance commitments and assignments by passage of an ordinance or resolution. This is done through adoption of the budget and subsequent budget amendments that occur throughout the year.

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

Property Taxes

In 1978, a state constitutional amendment (Proposition 13) provided that the tax rate be limited to 1% of market value, levied only by the County and shared with all other jurisdictions. Such limitation on the rate may only be increased through voter approval. The County Collects property taxes and distributes them to taxing-approved debt. In the fund financial statements, property tax is recorded as revenue in the period levied to the extent they are collected within 60 days of year- end.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-44-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

The property tax calendar for the City is as follows:

Lien date January 1
Levy dates September 1
Due dates November 1 - 1st installment
February 1 - 2nd installment
Collection dates December 10 - 1st installment
April 10 - 2nd installment

Advances from other Governments

The City reports advances from other governments in its financial statements. These advances arise when resources are received by the government before it has legal claim to them.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Stewardship, Compliance, and Accountability

Budgets and Budgetary Accounting

The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as follows:

On or before the second meeting in May, the City Manager submits to the City Council a proposed operating and capital projects budget for the fiscal year commencing the following July 1. Following publication and public hearings, the budget is legally enacted by resolution.

The City Manager is authorized to transfer funds appr opriated with respect to all classifications within the same department. The City Manager may transfer appropriated funds from any classification within other expenditure categories to existing capital outlay and capital projects classifications within the same department only; however, any revisions that alter the total expenditures of any department or create additional projects must be approved by the City Council.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-45-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Supplemental budgetary appropriations were negligible for the fiscal year ended June 30, 2023. All unencumbered appropriations lapse at year-end.

For budgeting purposes, the General Fund is composed of several departments while all other budgeted funds are considered a single department. Revenues are budgeted on a line-item basis.

A comparison of budgeted and actual revenues by line item would be too voluminous for this report.

Budgets for the General and major Special Revenue Funds are presented in the accompanying general purpose financial statements on a basis consistent with accounting principles generally accepted in the United States of America. Budgets for Capital Projects Funds are not presented because they are budgeted on a project basis rather than on an annual basis. No budgets are adopted for the Proprietary and Fiduciary Fund types.

Reclassification and Eliminations

Interfund balances must generally be eliminated in the government-wide financial statements, except for net residual amounts due between governm ental activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expense of the function from which the expenses are being allocated, so that expenses are reported only once in the function in which they are allocated.

Governmental Accounting Standards Update

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 99, Omnibus 2022 has varying implementation dates with the earliest being effective for fiscal years beginning after June 15, 2022.

GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62 is effective for fiscal years beginning after June 15, 2023.

GASB Statement No. 101, Compensated Absences is effective for fiscal years beginning after December 15, 2023. Earlier application is encouraged.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-46-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities, Net Assets or Fund Balance, and Other Financial Statement Items (Continued)

Implementation of New Pronouncements

GASB has issued Statement No. 96, Subscription Based Information Technology Arrangements.

The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for these arrangements by governments. This Statement increases the usefulness of government s’ financial statements by requiring recognition of certain subscription assets and liabilities for arrangements that previously were recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that subscriptions are financings of the right to use an underlying asset and a liability.

NOTE 2 - CASH AND INVESTMENTS

Cash and investments as of June 30, 2023 are cla ssified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 109,673,796 $
Restricted cash and investments 4,743
Fiduciary funds:

Cash and investments 2,014,924
Total Cash and Investments 111,693,463 $

Cash and investments as of June 30, 2023 consist of the following:

Cash on hand 4,150 $
Deposits with financial institutions 6,466,120
Investments 105,223,193
Total Cash and Investments 111,693,463 $

The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-47-
NOTE 2 - CASH AND INVESTMENTS (Continued)

Authorized Investment Type Maximum Maturity
Maximum
Percentage
of Portfolio*
Maximum
Investment
in One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Bankers' Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years None None
Repurchase Agreements 1 year 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Local Agency Investment Fund (LAIF) N/A None None
Corporate Investments N/A None None
*Excluding amounts held by bond trustees that are not subject to California Government Code Restrictions.

Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized Investment Type Maximum Maturity
Maximum
Percentage
of Portfolio*
Maximum
Investment
in One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Bankers' Acceptances 180 days 40% None
Commercial Paper 270 days 40% None
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 30% None
Mutual Funds N/A 20% None
Money Market Mutual Funds N/A 20% None
Local Agency Investment Fund (LAIF) N/A None None
Corporate Investments N/A None None

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-48-
NOTE 2 - CASH AND INVESTMENTS (Continued)

Disclosure Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing and coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity.

Investment Type Total
12 Months
or Less
13 to 24
Months
25 to 60
Months
More than
60 Months
Federal Agency Securities 13,999,378 $ - $ 6,050,358$ 7,949,020 $ - $ State and County Investment Pools 74,370,136 74,370,136 - - - Negotiable Certificates of Deposits 10,578,406 2,976,585 4,677,153 2,924,668 - Corporate Investments 5,763,134 4,588,075 1,175,059 - - Held by bond trustee:

Money Market Funds 512,139 - - 512,139 - Total 105,223,193 $ 81,934,796 $ 11,902,570 $ 11,385,827 $ - $ Remaining Maturity (in Months)

Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented on the following page is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements and the actual rating as of year-end for each investment type.

Investment Type Amount
Minimum Legal
Rating A/A+ AA+ Unrated
Federal Agency Securities 13,999,377 $ AA - $ 13,999,377$ - $ State and County Investment Pools 74,370,136 N/A - - 74,370,136 Negotiable Certificates of Deposits 10,578,407 N/A 235,003 - 10,343,404 Corporate Investments 5,763,134 N/A 3,589,723 - 2,173,411 Held by bond trustee:

Money Market Funds 512,139 N/A - - 512,139 Total 105,223,193 $ 3,824,726 $ 13,999,377 $ 87,399,090 $ Standard's & Poor's Ratings as of Year End

Concentration 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. The City had no investments in any one issuer (other than U.S. Treasury Securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-49-
NOTE 2 - CASH AND INVESTMENTS (Continued)

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another 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 deposits or investments, other than the following provisions for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

Investment in State and County Investment Pools

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code under the oversight of the Treasurer of State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amount based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. For withdrawals over $10,000,000 LAIF requires at least 24 -hour notice. Also, there is a $5,000 minimum and a limit of 15 transactions per month.

The City is also a voluntary participant in the County of Tulare Investment Pool. Assumptions made in determining the fair value of the investment portfolio are available from the County Treasurer.

Fair Value Measurements

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-50-
NOTE 2 - CASH AND INVESTMENTS (Continued)

The City has the following recurring fair value measurements as of June 30, 2023:

Investment type Level 1 Level 2 Level 3 Total
Federal Agency Securities - $ 13,999,377$ - $ 13,999,377$ Certificates of Deposit - 10,578,407 - 10,578,407 Corporate Investments - 5,763,134 - 5,763,134 -$ 30,340,918$ - $ 30,340,918 Investments not subject to fair value hierarchy
State and County Investment Pools 74,370,136
Money Market Funds 512,139
Total 105,223,193 $
Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. There have been no changes in fair value measurement classifications from the prior year.

NOTE 3 - RECEIVABLES

Receivables as of June 30, 2023 for the City’s individual major funds, nonmajor funds and internal service funds in the aggregate are as follows:

Accounts Taxes Loans Leases Total
Governmental Funds
General 4,246,146 $ - $ - $ - $ 4,246,146$ CDBG Home/Housing 170,144 - 18,547,440 - 18,717,584 Transportation Development Act - 1,460,388 - - 1,460,388 Nonmajor and Other 780,813 - 1,830,834 - 2,611,647 5,197,103 1,460,388 20,378,274 - 27,035,765 Enterprise Funds
Water System 1,411,328 - - - 1,411,328 Wastewater 691,735 - - - 691,735 Storm Drain 188,867 - - - 188,867 Refuse 1,150,699 - - - 1,150,699 Airport Fund 5,127 - - - 5,127 Intermodal 38,328 - - 202,952 241,280 Courthouse Square 1,771 - - - 1,771 3,487,855 - - 202,952 3,690,807 Internal Service Funds
City Payroll Fund 45,205 - - - 45,205 Risk Management Fund 45,828 - - - 45,828 Building Fund 6,141 - - - 6,141 Fleet Management 3,942 - - - 3,942 Medical Fund 606 - - - 606 101,722 - - - 101,722 Total 8,786,680 $ 1,460,388 $ 20,378,274 $ 202,952 $ 30,828,294$

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 4 - CAPITAL ASSETS

Capital assets activities for the year ended June 30, 2023 were as follows:

Balance
July 1, 2022
Additions/
Completions
Retirements/
Adjustments
Balance
June 30, 2023
Governmental Activities
Capital assets not being depreciated:

Land 60,801,667 $ 32,151 $ (378,198) $ 60,455,620 $ Construction in progress 309,369 616,557 (108,502) 817,424 Total capital assets not being depreciated 61,111,036 648,708 (486,700) 61,273,044 Capital assets being depreciated:

Buildings 24,975,448 285,821 - 25,261,269 Infrastructure 178,003,141 15,143,551 - 193,146,692 Equipment 23,207,518 1,514,418 (440,985) 24,280,951 Right to use leased equipment 89,570 - (20,036) 69,534 Right to use SBITA asset - 809,556 - 809,556 Total capital assets being depreciated 226,275,677 17,753,346 (461,021) 243,568,002 Less accumulated depreciation:

Buildings (9,739,491) (471,892) - (10,211,383) Infrastructure (110,087,567) (6,320,438) - (116,408,005) Equipment (13,672,122) (1,596,273) 181,312 (15,087,083) Right to use leased equipment (22,249) (22,967) 8,905 (36,311) Right to use SBITA asset - (414,608) - (414,608) Total accumulated depreciation (133,521,429) (8,826,178) 190,217 (142,157,390) Total capital assets being depreciated, net 92,754,248 8,927,168 (270,804) 101,410,612 Governmental Activities capital assets, net 153,865,284$ 9,575,876 $ (757,504) $ 162,683,656$ Business-type Activities
Capital assets not being depreciated:

Land 11,928,488 $ 22,385 $ - $ 11,950,873$ Construction in progress 1,195,166 2,878,318 (29,154) 4,044,330 Total capital assets not being depreciated 13,123,654 2,900,703 (29,154) 15,995,203 Capital assets being depreciated:

Buildings and improvements 182,006,151 10,069,498 (4,218,834) 187,856,815 Machinery and equipment 30,006,539 811,675 - 30,818,214 Total capital assets being depreciated 212,012,690 10,881,173 (4,218,834) 218,675,029 Less accumulated depreciation:

Buildings and improvements (73,425,022) (3,519,359) 254,802 (76,689,579) Machinery and equipment (14,419,916) (1,952,691) - (16,372,607) Total accumulated depreciation (87,844,938) (5,472,050) 254,802 (93,062,186) Total capital assets being depreciated, net 124,167,752 5,409,123 (3,964,032) 125,612,843 Business-type Activities capital assets, net 137,291,406$ 8,309,826 $ (3,993,186) $ 141,608,046 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-52-
NOTE 4 - CAPITAL ASSETS (Continued)

Depreciation expense for the fiscal year ending June 30, 2023 was charged to the following activities:

Governmental Activities:

General governmental 5,589,577 $
Public safety 217,776
Public works 1,304,395
Recreation 217,776
Community development 72,592
Capital assets held by the internal service funds that were charged to the various functions based on their usage 1,424,062 Total 8,826,178 $
Business-type Activities:

Water system 2,299,013 $
Wastewater 1,788,007
Storm drain 337,586
Refuse 697,244
Airport 324,084
Intermodal 26,116
Total 5,472,050 $

NOTE 5 - LONG-TERM DEBT

The following is a summary of the long-term debt activity for the year ended June 30, 2023:

Balance
July 1, 2022 Additions
Deletions/
Adjustments
Balance
June 30, 2023
Due Within
One Year
Governmental Activities
Bonds payable 26,506,940 $ - $ (1,046,710)$ 25,460,230 $ 1,537,514 $ Lease payable 67,378 - (33,337) 34,041 17,972 SBITA payable - 730,850 (377,023) 353,827 318,334 Total Governmental Activities 26,574,318 730,850 (1,457,070) 25,848,098 1,873,820 Business-type Activities
Bonds payable 20,709,060 - (1,915,290) 18,793,770 2,062,484 Bond premiums 556,425 - (73,307) 483,118 73,307 Note payable - direct 4,707,418 - (401,267) 4,306,151 415,311 Finance purchase
arrangement - direct borrowing 7,181,833 - (839,886) 6,341,947 930,924 Total Business-type Activities 33,154,736 - (3,229,750) 29,924,986 3,482,026 Total Primary Government 59,729,054 $ 730,850 $ (4,686,820)$ 55,773,084 $ 5,355,846 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-53-
NOTE 5 - LONG-TERM DEBT (Continued)

Governmental Activities

Bonds Payable

On May 23, 2022, the City of Hanford issued $30,946,000 Pension Obligation Bonds bearing interest of 4.39% payable annually on June 1 commencing June 1, 2023. The bonds mature annually at various amounts through June 1, 2039. The bonds are payable from net revenues in both the governmental activities and business-type activities created under the Indenture.

The Bonds were issued to pay the City’s unfunded accrued actuarial liability (UAAL), now known as Net Pension Liability, to the California Public Employees’ Retirement System (CalPERS).

Significant terms that pertain to the Pension Obligation Bonds are as follows. If the City fails to make the payment of principal or interest when due and payable; if the City fails to observe and perform any of the covenants, agreements, or conditions required in the bond agreement; if the City commences a voluntary case under Title 11 of the United States Code or any substitute or successor statute; the City shall be considered in default. In the event of a default, the Trustee may declare the principal and interest of the bond immediately due and payable. The revenues pledge from the bond are the revenues payable from the various funds allocated the issuance of the debt.

Pension obligation bonds outstanding on June 30, 2023 for governmental activities are $25,460,230.

The future maturities of the pension obligation bonds payable for governmental activities are as follows:

Fiscal Year Principal Interest Total
2024 1,537,514 $ 1,117,703 $ 2,655,217 $ 2025 1,500,683 1,050,206 2,550,889 2026 1,506,678 984,289 2,490,967 2027 1,498,113 918,146 2,416,259 2028 1,564,068 852,378 2,416,446 2029-2033 6,769,346 3,340,099 10,109,445 2034-2038 8,806,232 1,724,160 10,530,392 2039 2,277,596 99,957 2,377,553 Totals 25,460,230 $ 10,086,939 $ 35,547,169 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-54-
NOTE 5 - LONG-TERM DEBT (Continued)

Leases Payable

In fiscal year 2020 entered into a lease agreement as a lessee for the acquisition and use of copiers. An initial lease liability was recorded in the amount of $28,976. As of June 30, 2023, the value of the lease liability was $13,547. The City is required to make monthly principal and interest payments of $646. The lease has an interest rate of 0.20%. The copiers have a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $28,859 and had accumulated amortization of $16,237.

In fiscal year 2020, the City entered into a lease agreement as lessee for the acquisition and use of copiers. An initial lease liability was recorded in the amount of $40,914. As of June 30, 2023, the value of the lease liability was $20,494. The City is required to make monthly principal and interest payments of $856. The lease has an interest rate of 0.20%. The copiers have a five-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $40,675 and had accumulated amortization of $20,074.

In fiscal year 2021, the City entered into a lease agreement as a lessee for the acquisition and use of copiers. An initial lease liability was recorded in the amount of $19,681. As of June 30, 2023, the value of the lease liability was $0. The City is required to make monthly principal and interest payments of $359. The lease has an interest rate of 0.20%. The copiers have a five-year estimated useful life. The lease was terminated in the current year.

The future principal and interest lease payments as of June 30, 2023, are as follows:

Fiscal Year Principal Interest Total
2024 17,972 $ 49 $ 18,021$
2025 16,069 14 16,083
Totals 34,041 $ 63 $ 34,104$

Subscription based IT arrangement (SBITA) payable

In current year, the City entered into several subscription-based IT arrangements for the acquisition and use of various software packages. An initial liability was recorded in the amount of $730,850. As of June 30, 2023, the value of the liability was $353,827. The City is required to make (monthly and annually) principal and interest payments of ranging from $7,056 to $104,763.

The interest rates range from 0.20% to 2.40%. The assets have a between 2 and 3 year estimated useful lives. The value of the right-to-use assets as of the end of the current fiscal year was $809,556 and had accumulated amortization of $414,608.

Fiscal Year Principal Interest Total
2024 318,334 $ 306 $ 318,640$
2025 35,493 35 35,528
Totals 353,827 $ 341 $ 354,168$

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-55-
NOTE 5 - LONG-TERM DEBT (Continued)

Business-type Activities

Bonds Payable

On July 1, 2012, the City of Hanford issued $13,165,000 Wastewater Revenue Refunding Bonds Series 2012 bearing interest of 3.0% to 5.0% payable semi-annually on April 1 and October 1 commencing October 1, 2012. The bonds mature annually at various amounts through October 1, 2032. The bonds are payable from net revenues of the City’s Wastewater System and from amounts on deposit in certain funds and accounts created under the Indenture.

The Bonds were issued to refinance the City’s previously issued $5,000,000 CSCDA Water and Wastewater Revenue Bonds, dated October 1, 1999 and the $10,555,000 CSCDA Water and Wastewater Revenue Bonds dated April 16, 2002. As a result, the 1999 and 2002 Revenue Bonds are considered to be defeased and the liability for those bonds has been removed from the long- term liabilities of the Business Activities Debt.

The aggregate debt service payments of the new debt is $2,121,034 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the present value of the old debt and new debt payments) of approximately $1,537,677.

Significant terms that pertain to the Wastewater Revenue Refunding Bonds Series 2012 are as follows. If the City fails to make the payment of principal or interest when due and payable; if the City fails to observe and perform any of the covenants, agreements, or conditions required in the bond agreement; if the City files a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws; the City shall be considered in default. In the event of a default, the Trustee may declare the principal and interest of the bonds immediately due and payable. The revenues pledged of the bond are the revenues payable from the City’s Wastewater fund for the life of the bonds.

Wastewater revenue bonds outstanding on June 30, 2023 are $7,050,000.

The future maturities of the wastewater revenue bonds payable are as follows:

Fiscal Year Principal Interest Total
2024 670,000 $ 255,264 $ 925,264 $ 2025 695,000 214,063 909,063 2026 725,000 201,375 926,375 2027 750,000 175,563 925,563 2028 785,000 148,209 933,209 2029-2033 3,425,000 316,590 3,741,590 Totals 7,050,000$ 1,311,064 $ 8,361,064 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-56-
NOTE 5 - LONG-TERM DEBT (Continued)

Bonds Payable (Continued)

On July 1, 2013, the City of Hanford issued $12,725,000 Water Revenue Refunding Bonds Series 2013 bearing interest of 2.0% to 5.0% payable semi-annually on April 1 and October 1, commencing October 1, 2013. The bonds mature annually at various amounts through October 1, 2028. The bonds are payable from net revenues of the City’s Water System and from amounts on deposit in certain funds and accounts created under the Indenture.

The Bonds are being issued to refinance the City’s previously issued to refinance the City’s previously issued $8,925,000 CSDA Water and Wastewater Revenue Bonds, dated December 9, 2003 and the $8,150,000 Installment Sale Agreement Water System dated December 20, 2007. As a result the 2003 Revenue Bond and 2007 Installment Sale Agreement are considered defeased and the liability for those issues has been removed from the long-term liabilities of the Business Activities Debt.

The aggregate debt service payments of the new debt are $1,430,167 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the present value of the old debt and new debt payments) of approximately $567,774.

Significant terms that pertain to the Water Revenue Refunding Bonds Series 2013 are as follows. If the City fails to make the payment of principal or interest when due and payable; if the City fails to observe and perform any of the covenants, agreements, or conditions required in the bond agreement; if the City files a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws; the City shall be considered in default. In the event of a default, the Trustee may declare the principal and interest of the bonds immediately due and payable. The revenues pledged for the bond are the revenues payable from the City’s Water fund for the life of the bonds.

Water revenue bonds outstanding on June 30, 2023 are $5,055,000.

The future maturities of the water revenue bonds payable are as follows:

Fiscal Year Principal Interest Total
2024 930,000 $ 197,650 $ 1,127,650 $ 2025 970,000 157,425 1,127,425 2026 1,015,000 115,075 1,130,075 2027 1,055,000 68,600 1,123,600 2028 530,000 36,238 566,238 2029 555,000 12,488 567,488 Totals 5,055,000$ 587,476 $ 5,642,476 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-57-
NOTE 5 - LONG-TERM DEBT (Continued)

Bonds Payable (Continued)

On January 28, 2015, the City of Hanford issued $3,885,000 Wastewater Revenue Refunding Bonds Series 2015, bearing interest of 2.0% to 4.0% payable semi-annually on April 1 and October 1, commencing April 1, 2015. The bonds mature annually at various amounts through October 1, 2032. The bonds are payable from net revenues of derived from charges and revenues received by the City from the operation of the Wastewater System.

The bonds are being issued to provide funds to refund the City’s outstanding City of Hanford, Variable Rate Demand Sewer System Refunding Revenue Bonds, 1996 Series A, to purchase a reserve fund municipal bond insurance policy in lieu of cash funding a bond reserve fund for the Bonds, and to pay the cost of issuing the Bonds. As a result, the 1996 Revenue Bonds are considered to be defeased and the liability for those bonds has been removed from the long-term liabilities of the Business Activities Debt.

The aggregate debt service payments of the new debt are $644,540 more than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic loss (the difference between the present value of the old debt and new debt payments) of approximately $621,656.

Significant terms that pertain to the Wastewater Revenue Refunding Bonds Series 2015 are as follows. If the City fails to make the payment of principal or interest when due and payable; if the City fails to observe and perform any of the covenants, agreements, or conditions required in the bond agreement; if the City abandons a substantial part that shall continue for a period of sixty consecutive days; if the City files a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws; the City shall be considered in default. In the event of a default, the Trustee may declare the principal and interest of the bonds immediately due and payable. The revenue pledged for the bond are the revenues payable from the City’s Wastewater fund for the life of the bonds.

Wastewater revenue bonds outstanding on June 30, 2023 are $2,425,000.

The future maturities of the wastewater revenue bonds payable are as follows:

Fiscal Year Principal Interest Total
2024 205,000 $ 85,275 $ 290,275 $ 2025 215,000 78,975 293,975 2026 220,000 72,450 292,450 2027 225,000 65,775 290,775 2028 235,000 57,700 292,700 2029-2033 1,325,000 136,500 1,461,500 Totals 2,425,000$ 496,675 $ 2,921,675 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-58-
NOTE 5 - LONG-TERM DEBT (Continued)

Bonds Payable (Continued)

On May 23, 2022, the City of Hanford issued $30,946,000 Pension Obligation Bonds bearing interest of 4.39% payable annually on June 1 commencing June 1, 2023. The bonds mature annually at various amounts through June 1, 2039. The bonds are payable from net revenues in both the governmental activities and business-type activities created under the Indenture.

Pension obligation bonds outstanding on June 30, 2023 for business-type activities are $4,263,770.

The future maturities of the pension obligation bonds payable for business activities are as follows:

Fiscal Year Principal Interest Total
2024 257,484 $ 187,179 $ 444,663 $ 2025 251,316 175,876 427,192 2026 252,320 164,837 417,157 2027 250,886 153,760 404,646 2028 261,931 142,746 404,677 2029-2033 1,133,648 559,359 1,693,007 2034-2038 1,474,761 288,741 1,763,502 2039 381,424 16,738 398,162 Totals 4,263,770$ 1,689,236 $ 5,953,006 $

Notes Payable – direct borrowing

On May 28, 2002, the City of Hanford obtained a loan from the California Infrastructure and Economic Development Bank in the amount of $10,000,000. The term of the agreement is thirty (30) years with a maturity date of February 1, 2034, and an annual interest rate of 3.50%. Prior to the Bond Date, there is a .26% reduction in the interest rate, resulting in an initial rate of 3.24%.

Interest on the loan is payable semi-annually on each February 1 and August 1, commencing August 1, 2003. As of June 30, 2023, the balance outstanding was $4,306,151.

Significant terms that pertain to the California Infrastructure and Economic Development Bank loan are as follows. If the City fails to make the payment of principal or interest when due and payable; if the City fails to observe and perform any of t he covenants, agreements, or conditions required in the note agreement; if the City made any representation or other written statement contained in the agreement that was incorrect in any material respect; if the City files a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws; the City shall be considered in default. In the event of a default, the CIEDB may declare the principal and interest of the bonds immediately due and payable. Additionally, revenues pledged for the note are the revenues payable from the City’s Wastewater fund.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 5 - LONG-TERM DEBT (Continued)

Notes Payable – direct borrowing (Continued)

The future maturities of the note payable are as follows:

Fiscal Year Principal Interest Total
2024 415,311 $ 143,447 $ 558,758 $ 2025 429,846 128,657 558,503 2026 444,892 113,349 558,241 2027 460,463 97,505 557,968 2028 476,579 81,107 557,686 2029-2032 2,079,060 148,664 2,227,724 Totals 4,306,151$ 712,729 $ 5,018,880 $

Finance Purchase Arrangements – direct borrowing

In November, 2011, the City entered into a finance purchase arrangement with Bank of America to design and construct an energy efficient tracker system for the City’s wastewater treatment plant.

The purchase price of this project is $4,325,556, with annual payments in varying amounts including interest at 3.33% commencing on July 8, 2012 with a final payment in July, 2026. The balance outstanding as of June 30, 2023 was $1,274,076.

Significant terms that pertain to the 2011 Finance Purchase Arrangement are as follows. If the City fails to make the payment of principal or interest when due and payable; if the City fails to observe and perform any of the covenants, agreements, or conditions required in the agreement; if the City had a statement, representation, or warranty that was proven to be false, incorrect, misleading, or breached; if the City defaults on any other agreement for borrowing money, lease financing of property, or other credit under which the City is an obligor; if the City files a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws; the City shall be considered in default. In the event of a default, the Lessor may take whatever action necessary or desirable to collect each rental payment as t hey become due and payable, or they may enter the premises where the equipment is located and retake possession or they may take whatever action at law or in equity may appear necessary or desirable to enforce. The collateral pledged for the lease is the equipment noted in the capital lease.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 5 - LONG-TERM DEBT (Continued)

Finance Purchase Arrangements – direct borrowing (Continued)

The annual debt service requirements for the 2011 Finance Purchase Arrangement outstanding on June 30, 2023 are as follows:

Fiscal Year Principal Interest Total
2024 274,531 $ 42,427 $ 316,958 $ 2025 302,640 33,285 335,925 2026 332,549 23,207 355,756 2027 364,357 12,133 376,490 Totals 1,274,077$ 111,052 $ 1,385,129 $

In March 2014, the City entered into a finance purchase arrangement with Bank of America National Association to design and construct a solar photovoltaic energy system using an energy service contract with Chevron Energy Solutions Company for several facilities throughout the City.

The purchase price of this contract is $8,495,138, with semi-annual payments in varying amounts including interest at 3.54% commencing on October 26, 2014 with a final payment in April, 2029.

The balance outstanding as of June 30, 2023 was $5,067,870.

Significant terms that pertain to the 2014 Finance Purchase Arrangement are as follows. If the City fails to make the payment of principal or interest within 10 days after the date when due; if the City fails to observe and perform any of the covenants, agreements, or conditions required in the agreement; if the City had a statement, representation, or warranty that was proven to be false, incorrect, misleading, or breached; if the City defaults on any other agreement for borrowing money, lease financing of property, or other credit under which the City is an obligor; the City shall be considered in default. In the event of a default, the Lessor may take whatever action necessary or desirable to collect each rental payment as they become due and payable or they may enter the premises where the equipment is located and retake possession or they may take whatever action at law or in equity may appear necessary or desirable to enforce. The collateral pledged for the lease is the equipment noted in the capital lease.

The annual debt service requirements for the 2014 Finance Purchase Arrangement outstanding on June 30, 2023 are as follows:

Fiscal Year Principal Interest Total
2024 656,393 $ 173,644 $ 830,037 $ 2025 725,344 149,803 875,147 2026 798,858 123,481 922,339 2027 877,195 94,514 971,709 2028 960,630 62,730 1,023,360 2029-2030 1,049,450 27,946 1,077,396 Totals 5,067,870$ 632,118 $ 5,699,988 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 6 - LEASE RECEIVABLE

Lease Receivables

In fiscal year 1993, the City’s intermodal fund leased a building to a third party. The lease is for thirty-five years and the City will receive rent of $13,308 annually with an increase of 3% each year. The City recognized $39,352 in lease revenue and $439 in interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for lease payments was $202,952. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of June 30, 2023, the balance of the deferred inflow of resources was $196,762.

In fiscal year 2001, the City’s parking fund leased seventy-five parking spaces to a third party. The lease is for fifty years and the City will receive $9,000 annually for the first three years of the agreement after which the lease fee will increase 3% annually. The City recognized $19,496 in lease revenue and $7,601 in interest revenue during the current fiscal year related to this lease.

During the current fiscal year, this lease was terminated.

In fiscal year 2020, the City’s wastewater fund leased 960-acres of agricultural ground to a third party. The lease is for twenty-five years and the City will receive annual payments of $100 per acre. Beginning in fiscal year 2021, the rental amount shall increase by $50 per acre and continue to increase by the same amount each year that the lease remains in effect. During the current fiscal year, this lease was terminated.

Payments for the lease receivables are expected to be received in the following subsequent years:

Fiscal Year Principal Interest Total
2024 37,972 $ 330 $ 38,302$
2025 39,198 251 39,449
2026 40,463 170 40,633
2027 41,766 86 41,852
2028 43,553 - 43,553
Totals 202,952 $ 837 $ 203,789$

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 7 - CHANGES IN OTHER LONG-TERM LIABILITIES

Balance
July 1, 2022 Additions Deletions
Balance
June 30, 2023
Due Within
One Year
Governmental Activities
Compensated absences 1,240,973$ 796,265 $ (604,174) $ 1,433,064 $ 327,654 $ Total Governmental Activities 1,240,973$ 796,265 $ (604,174) $ 1,433,064 $ 327,654 $ Business-type Activities
Compensated absences 236,336$ 185,412 $ (114,625) $ 307,123 $ 36,083 $ Total Business-type Activities 236,336$ 185,412 $ (114,625) $ 307,123 $ 36,083 $ Compensated Absences

The City accounts for compensated absences (unpaid vacation, sick leave, and compensatory time) in accordance with generally accepted accounting principles. In governmental funds, compensated absences are recorded as expenditures in the year paid, as it is the City’s intention to liquate any unpaid compensated absences as of June 30 from future resources, rather than current available financial resources. Accordingly, the unpaid liability for governmental funds is recorded in the government-wide statement of net assets. The General Fund typically liquidates governmental funds compensated absences.

NOTE 8 - PENSION PLAN

Plan Descriptions

The City’s defined benefit plans, the Miscellaneous, Police Safety and Fire Safety Plans of the City, are open to all qualified permanent and probationary employees. The miscellaneous plan is an agent multiple-employer plan and the police and fire safety plans are cost-sharing multiple employer plans. The Plans are administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common inve stment and administrative agent for participating public employers within the State of California. Benefit provisions under the Plans are established by State Statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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 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 Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each pl an are applied as specified by the Public Employees’ Retirement Law.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 8 - PENSION PLAN (Continued)

Benefits Provided (Continued)

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plan’s provisions and benefits in effect as of June 30, 2023, are summarized as follows:

PEPRA
Prior to January
1, 2013
On or After January
1, 2013
Benefit formula 3.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life
Retirement age 50 52
Monthly benefits as a % of eligible compensation 1.426% - 2.418% 1.000% - 2.500% Required employee contribution rates 8.00% 7.50%
Required employer contribution rates 12.57% 12.57%
PEPRA
Prior to January
1, 2013
On or After January
1, 2013
Benefit formula 3% @ 55 2.0% @ 62
Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life
Retirement age 50 50
Monthly benefits as a % of eligible compensation 3.00% 1.000% - 2.500% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 23.68% 13.66%
PEPRA
Prior to January
1, 2013
On or After January
1, 2013
Benefit formula 3% @ 55 2.0% @ 62
Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life
Retirement age 50 50
Monthly benefits as a % of eligible compensation 3.00% 1.000% - 2.500% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 23.68% 13.66%
Miscellaneous
Safety Police
Safety Fire

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-64-
NOTE 8 - PENSION PLAN (Continued)

As of the June 30, 2021 actuarial valuation, the following current and former City employees were covered by the agent-multiple employer miscellaneous plan:

Inactive employees or beneficiaries
currently receiving benefits 214
Inactive employees entitled to but
not yet receiving benefits 188
Active employees 203
Total 605

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public em ployers 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. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contri bution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the cost sharing and agent Plans for the fiscal year ended June 30, 2023 were $2,442,956 for the Safety plan and $2,402,040 for the Miscellaneous plan.

The actual employer payments of $22,746,250 made to CalPERS by the City during the measurement period ended June 30, 2022 differed from the City’s proportionate share of the employer’s contributions of $6,471,556 by $16,274,694, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

Net Pension Liability

The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-65-
NOTE 8 - PENSION PLAN (Continued)

Net Pension Liability (Continued)

The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry Age Normal
Asset valuation method Fair value of assets
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Salary increases Varies by Entry Age and Service
Mortalit
y rate table (1) Derived using CalPERS' membership data for all funds Post retirement benefit The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortalit y are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

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City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 8 - PENSION PLAN (Continued)

Long-term Expected Rate of Return

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building- block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

Asset Class
Assumed Asset
Allocation Real Return 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-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%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

Change of Assumptions

Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-67-
NOTE 8 - PENSION PLAN (Continued)

Discount Rate

The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events

On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Pension Plan Fiduciary Net Position

Information about the pension plan’s assets, deferr ed outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net posit ion and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Investments are reported at fair value.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-68-
NOTE 8 - PENSION PLAN (Continued)

Proportionate Share of Net Pension Liability

The following table shows the Safety Plan’s proportionate share of the net pension liability over the measurement period.

Miscellaneous Safety
Proportion - June 30, 2021 N/A 0.03957%
Proportion - June 30, 2022 N/A 0.01643%
Change - Increase (Decrease) N/ A -0.02314%

The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City's proportionate share of the net pension liability/(asset) for the Safety Plan as of June 30, 2021 and 2022 measurement dates was as follows:

Total Fiduciary Net Pension
Pension Liability Net Position Liability
Safety
Balance at: 6/30/21 (Valuation date) 99,638,639 $ 85,750,237 $ 13,888,402 $ Balance at: 6/30/22 (Measurement date) 108,292,236 97,002,100 11,290,136 Net changes during 2021-2022 8,653,597 $ 11,251,863 $ (2,598,266) $ Increase(Decrease)

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City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-69-
NOTE 8 - PENSION PLAN (Continued)

Change in agent-multiple employer plan

The following table shows the changes in net pension liability of the Miscellaneous Plan over the measurement period:

Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability /
(Asset)
(c) = (a) - (b)
Balance at: 6/30/2021 (VD) 118,344,080 $ 109,402,175 $ 8,941,905 $ Changes recognized for the
measurement period:

Service cost 2,629,757 - 2,629,757 Interest on the Total
Pension Liability 8,080,540 - 8,080,540 Changes of assumptions 1,886,393 - 1,886,393 Differences between expected and
actual experience (1,259,145) - (1,259,145) Net plan to plan resource movement - (52,804) 52,804 Contributions from the employer - 15,804,838 (15,804,838) Contributions from employees - 903,798 (903,798) Net investment income - (8,335,831) 8,335,831 Benefit payments, including refunds
of employee contributions (6,353,883) (6,353,883) - Administrative expense - (68,151) 68,151 Other miscellaneous income/(expense)1 - - - Net Changes during 2020-21 4,983,662 1,897,967 3,085,695 Balance at: 6/30/2022 (MD) 123,327,742 $ 111,300,142 $ 12,027,600 $ 1 During Fiscal Year 2017-18, as a result of G overnmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Othe r than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for partic ipation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State o f California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly re flect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-70-
NOTE 8 - PENSION PLAN (Continued)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s net pension liabilities as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 29,112,339 $ 26,245,124 $ Current Discount Rate 6.90% 6.90%
Net Pension Liability 12,027,600 $ 11,290,136 $ 1% Increase 7.90% 7.90%
Net Pension Liability/(Asset) (1,968,498) $ (932,189) $

Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB 68, gains and losses related to c hanges in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments

5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and
retired) as of the beginning of the measurement
period

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-71-
NOTE 8 - PENSION PLAN (Continued)

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions

As of the start of the measurement period (July 1, 2021), the City’s net pension liabilities were $8,941,905 and $13,888,402, for the Miscellaneous and Safety plans, respectively. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense of $2,937,859 and $13,670,225 for the Miscellaneous and Safety Plans, respectively.

The pension expense of the Miscellaneous Plan was as follows:

Description Amount
Service cost 2,629,757 $
Interest on total pension liability 8,080,540
Recognized changes of assumptions 483,691
Recognized differences between expected
and actual experience (315,777)
Net plan to plan movement 52,804
Employee contributions (903,798)
Projected earnings on pension plan
investments (7,897,326)
Recognized difference between projected
and actual earnings on plan investments 739,817
Administrative expense 68,151
Total pension expense 2,937,859 $

As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
Changes of assumptions 1,402,702 $ - $
Differences between expected and actual experiences 1,217,289 Net differences between projected and actual earnings on investments 5,539,073 -
Pension contributions subsequent to measurement date 2,402,040 - Total 9,343,815$ 1,217,289 $
Deferred Outflows Deferred Inflows
Changes in assumptions 1,138,387 $ - $
Differences between expected and actual experience 344,656 - Net differences between projected and actual earnings on investments 1,782,870 -
Adjustment due to differences in proportions 11,155,260 - Adjustment due to differences between actual and proportionate share of contributions - -
Change in employer's proportion - 13,998,308 Pension contributions subsequent to measurement date 2,442,956 - Total 16,864,129$ 13,998,308 $
Safety Plan
Miscellaneous Plan

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

-72-
NOTE 8 - PENSION PLAN (Continued)

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)

The amounts above are net of outflows and inflows recognized in the 2021/22 measurement period expense. Contributions subsequent to the measurement date of $2,402,040 and $2,442,956, for the Miscellaneous and Safety Plans, respectively reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year.

Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal year
ended June 30 Miscellaneous Plan Safety Plan
2023 928,584 $ (68,319) $
2024 915,591 (281,742)
2025 633,678 (314,648)
2026 3,246,633 1,087,574
Total 5,724,486 $ 422,865 $
Deferred Outflows (Inflows) of Resources

Payable to the Pension Plan

The City had no outstanding amounts owed to the pension plan for contributions for the year ended June 30, 2023.

NOTE 9 - POST EMPLOYMENT HEALTH CARE BENEFITS

Plan Description: the City participates in th e CalPERS medical program under the Public Employees’’ Medical and Hospital and Care Act (PEMHCA). As such, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. The City has selected the equal contribution method, where it resolves to contribute the same amount for retirees as is contributed toward active employee medical plan coverage. The City currently pays the minimum employer contribution (MEC) for both active and retired employees as well as their survivors, if covered at the time of the employees’ death. The MEC is $119 per month for 2022. The plan does not issue separate standalone financial statements.

Dental insurance is available to retired employees as well, though the cost of coverage is paid entirely by the retiree. Once the retiree reaches age 65 the City no longer allows the retiree to stay on the dental plan.

The above coverage is available for employees who satisfy the requirements for retirement under CalPERS (attained age 50 with 5 years of State or public agency service or approved disability retirement). An employee cannot terminate em ployment before meeting the age condition and be entitled to receive benefits. As of January 1, 2016, the City terminated its healthcare contract with CalPERS. No future retirees are eligible for healthcare coverage or benefits from the City toward the cost of retiree medical coverage.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 9 - POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)

Employees Covered

As of the June 30, 2023 actuarial valuation, the following current and former City employees were covered by the OPEB plan membership:

Inactive employees or beneficiaries currently receiving benefit payments 43 Active employees 291
Total employees covered by the OPEB plan membership 334

Contributions

Currently the City funds retiree healthcare benefits on a pay-as-you-go basis, paying a maximum of $119 per month for retiree benefits from the City funds as they are due with no prefunding for future years. The City recognizes expenditures for its share of the annual premiums as these benefits become due. For fiscal year 2022-2023, the City paid approximately $45,696 for benefits of 44 retirees or their beneficiaries receiving benefits.

Total OPEB Liability

The City’s total OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions.

Valuation Date June 30, 2023
Funding Method Entry Age Normal Cost, level of pay
Asset Valuation Method Market value of assets
Discount Rate 3.86% as of June 30, 2023

3.69% as of June 30, 2022
Participants Valued
Salary Increase
General Inflation Rate 2.5% per year
Mortality CalPERS 2017 Experienced Study
Mortality Improvement MacLeod Watts Scale 2022 applied generationally from 2017 Healthcare Trend 6.8% in 2024, step down to 3.9% by 2076 Only current active employees, retired participants and covered dependents are valued. No future entrants are included.

3.0% per year. Since benefits do no depend on salary, this is used to allocate the cost of benefits between service years.

Discount Rate

The discount rate used to measure the total OPEB liability was 3.86 percent. The projection of the cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB City’s net position was projected to be av ailable to make all projected OPEB payments for inactive employees and beneficiaries based on the “pay as you go” annual contributions.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 9 - POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)

Changes in the total OPEB Liability

The change in the total OPEB liability for the year ended June 30, 2023 is as follows:

Total OPEB
Liability
Plan Fiduciary Net
Position
Net OPEB Liability
(Asset)
Balance at June 30, 2022 3,943,404 $ - $ 3,943,404$ (6/30/22 measurement date)
Changes in the year:

Service cost 235,139 - 235,139 Interest 151,343 - 151,343 Employer contribution - 154,219 (154,219) Benefit payments (154,219) (154,219) - Changes in assumptions (100,260) - (100,260) Plan experience (137,215) - (137,215) Net change (5,212) - (5,212) Balance at June 30, 2023
(6/30/23 measurement date) 3,938,192 $ - $ 3,938,192$ Increase (Decrease)

Sensitivity of the total OPEB Liability to Changes in the Discount Rate

The following presents the total OPEB liability of the Plan as of the measurement date, calculated using the discount rate of 3.86%, if it were calculated using a discount rate that is 1 percentage- point lower (2.86%) or 1 percentage-point higher (4.86%) than the current rate:

Discount Rate
-1% (2.86%)
Current
Discount Rate

3.86%
Discount Rate
+1% (4.86%)
Total OPEB Liability 4,309,183$ 3,938,192 $ 3,601,145 $

Sensitivity of the total OPEB Liability to Changes in the Healthcare Cost Trend Rate

The following presents the total OPEB liability of the Plan if it were calculated using healthcare cost trend rates that are 1 percentage-point lower or 1 percentage-point higher than the current rate:

1% Decrease
Current Trend
Rate 1% Increase
Total OPEB Liability 3,533,262$ 3,938,192 $ 4,420,705 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 9 - POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)

OPEB Expense

As of the start of the measurement period (July 1, 2022), the total OPEB liability was $3,943,404.

For the measurement period ended June 30, 2023 (the measurement date), the City incurred an OPEB expense of $573,916. The pension expense was as follows:

Description Amount
Service cost 235,139 $
Interest cost 151,343
Assumption changes 82,301
Plan experience 105,133
Total OPEB expense 573,916 $

As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to the total OPEB liability as follows:

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Difference between expected and actual experience 784,841$ 125,577 $ Changes in assumptions or other inputs 1,243,607 667,123 Total 2,028,448 $ 792,700 $

Other amounts reported as deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:

Fiscal Year ended
June 30,
Recognized Net Deferred
Outflows (Inflows) of
Resources
2024 187,434 $
2025 187,434
2026 187,434
2027 187,434
2028 187,434
Thereafter 298,578
1,235,748$

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 10 - RISK MANAGEMENT

The City participates in a public entity risk pool for workers’ compensation and general liability insurance above our self-insured retention limit s. For workers’ compensation, the City is individually liable for claims up to $250,000 per occurrence. Coverage in excess of the City’s self- insured retention is then obtained through Public Risk Innovation, Solutions, and Management (PRISM) excess workers’ compensation program up to the statutory limits. The City participates in a risk pool for general liability claims through PRIS M above the City’s self-insured retention of $100,000 up to $25,000,000 per occurrence, subject to certain exclusions. For both excess workers’ compensation and general liability covered occurrences, PRISM coordinates reimbursement of costs incurred for covered actions in excess of each member’s self-insured retention. While there were no reductions in excess coverage from the prior year and there were no settlements that exceeded excess pool layer of cove rage for the past three fiscal years, given marketing challenges in California, additional coverage exclusions continue to apply.

The City participates in a number of supplemental insurance programs through Alliant. Alliant Property Insurance Program (APIP) is for city owned buildings and structures. In 2022 a city-wide site inspection was conducted to appraise city owned buildings and structures. The APIP deductible is $10,000.00 per covered occurrence. APIP insurance includes elected coverage for Boiler & Machinery, Cyber Security, and Pollution Coverage. Claim reporting timeframe limitations apply to both Cyber Coverage and Pollution Coverage policies.

Worker’s compensation and general liability claims incurred prior to July 1, 2012 were covered through the City’s participation in the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk pool.

NOTE 11 - INTERFUND TRANSACTIONS

Interfund transactions are reported as either loans, service provided, reimbursements, or transfers.

Loans are reported as interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement.

All other interfund transactions are treated as transfers. Transfers among governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 11 - INTERFUND TRANSACTIONS (Continued)

As of June 30, 2023 the City interfund due from/to other funds were as follows:

Due From
Other Funds
Due To
Other Funds
Governmental Funds
General Fund 1,175,894 $ - $
Non-major funds - 230,309
Proprietary Funds
Wastewater Fund 1,399,758 1,716,645
Courthouse Square - 153,062
Computer Maintenance Fund - 337,695 Fleet Management Fund - 137,941
Total 2,575,652 $ 2,575,652 $

These balances are to cover deficit cash balances and for short-term loans.

As of June 30, 2023 the City’s interfund advances to/from other funds were as follows:

Advances To
Other Funds
Advances From
Other Funds
Governmental Funds
Capital Projects Fund 1,659,025 $ - $
Proprietary Funds
Water System Fund 531,130 531,130
Airport Fund - 375,467
Intermodal Fund - 261,224
Courthouse Square Fund - 1,022,334 Total 2,190,155 $ 2,190,155 $

These balances are for long-term financing between funds.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 11 - INTERFUND TRANSACTIONS (Continued)

Interfund transfers consist of operating transfers from funds receiving resources to funds through which the resources are to be expended. Interfund transfers for the year-ended June 30, 2023 were as follows:

Transfers In Transfers Out
Governmental Funds
General Fund 3,880,591 $ 449,787 $
CDBG Home/Housing Fund 43,117 169,872
ARPA Fund - 2,833,333
Non-major Governmental Funds 703,988 1,481,151 Proprietary Funds
Water System Fund 5,381,072 5,139,919
Wastewater Fund 2,145,812 2,159,943
Storm Drain Fund 1,642,246 1,621,279
Refuse Fund 104,391 104,391
Non-major propriety fund types
Airport Fund - 4,779
Building Fund - 47,700
Fleet Management Fund 128,993 18,056
Total 14,030,210 $ 14,030,210 $

NOTE 12 - PRIOR PERIOD ADJUSTMENTS

Prior period adjustments for the year ended June 30, 2023 is summarized as follows:

Governmental Activities
Governmental
Activities
Net Position, beginning of year, as previously reported 177,657,695 $ Prior period adjustment to correct funding that should be restricted (100,939) Prior period adjustment to record sales tax accruals 2,396,952 Prior period adjustment for recognizing TDA revenue
previously reported as an advance from other governments 5,872,677 Total Prior Period Adjustments 8,168,690
Net Position, beginning of year, restated 185,826,385 $

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 12 - PRIOR PERIOD ADJUSTMENTS (Continued)

Governmental Fund Financial Statements
Governmental Funds
General Fund
Fund Balance, beginning of year, as previously reported 3,281,078 $ Prior period adjustment to record sales tax accruals 2,396,952 Prior period adjustment to correct funding that should be restricted (100,939) Total Prior Period Adjustments 2,296,013
Fund Balance, beginning of year, restated 5,577,091 $
Transportation
Development Act
Fund
Fund Balance, beginning of year, as previously reported 325,111 $ Prior period adjustment for recognizing TDA revenue
previously reported as an advance from other governments 5,872,677 Fund Balance, beginning of year, restated 6,197,788 $
Fiduciary Fund Financial Statements
Fiduciary Funds
Miscellaneous
Deposits Trust
Net Position, beginning of year, as previously reported 34,603 $ Prior period adjustment for correction of error (4,963) Net Position, beginning of year, restated 29,640 $

NOTE 13 - DEFICIT FUND BALANCE/NET POSITION

The Courthouse Square Fund has a net position deficit of $1,171,219. The deficit will be recovered through future charges for services.

The American Rescue Plan Act Fund has a fund balance deficit of $146,712, mainly attributable to the unearned revenues. The deficient will be recovered as the City continues to spend and earn the revenue.

The Police Protection Impact Fees Fund has a fund balance deficit of $170,397, mainly attributable to the due to other funds balance. The deficit will be recovered through grant support received from other government agencies.

City of Hanford

Notes to the Financial Statements
For the Year Ended June 30, 2023

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NOTE 14 - EXCESS EXPENDITURES OVER APPROPRIATIONS

For the fiscal year ended June 30, 2023, expenditures exceeded appropriations as follows:

Fund Amount
General Fund
General government (975,595) $
Debt service - interest (1,140,021)
Transportation Development Act Fund
General government (5,743)
Transportation Impact Fees
General government (5,923)
Capital Projects
General government (1,419)
Park Impact Fees
General government (5,008)
Parking Fund
General government (184)
Downtown Reinvestment Fund
General government (123)
Landscaping Assessment District
General government (2,147)
City Housing Fund
General government (560)
Central Parking and Business Improvement Fund
General government (173)
Fire Protection Impact Fees
General government (625)
Police Protection Impact Fees
General government (33)
Traffic Safety
General government (79)
State Gas Tax Fund
General government (3,717)
Public Housing Authority
Capital Outlay (812,628)

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REQUIRED SUPPLEMENTARY

INFORMATION

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City of Hanford

Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years

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Miscellaneous Plan
Fiscal Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability
Service cost 2,629,757 $ 2,307,283 $ 2,151,214 $ 2,064,352 $ 2,105,925 $ 2,090,309 $ 1,914,877 $ 1,859,399 $ 1,803,855 $ Interest 8,080,540 8,011,156 7,725,010 7,440,145 7,031,320 7,021,932 6,976,069 6,689,193 6,381,234 Differences between expected and actual experience (1,259,145) (436,335) (410,579) 1,398,071 (1,511,015) (3,768,183) (831,190) (443,007) - Changes in assumptions 1,886,393 - - - (3,087,527) 6,006,913 - (1,698,571) - Benefit payments, including refunds of employees contributions (6,353,883) (5,729,725) (5,302,018) (5,004,441) (4,588,971) (4,191,413) (4,206,587) (3,783,672) (3,644,252) Net change in total pension liability 4,983,662 4,152,379 4,163,627 5,898,127 (50,268) 7,159,558 3,853,169 2,623,342 4,540,837 Total pension liability- beginning 118,344,080 114,191,701 110,028,074 104,129,947 104,180,215 97,020,657 93,167,488 90,544,146 86,003,309 Total pension liability-ending (a) 123,327,742 118,344,080 114,191,701 110,028,074 104,129,947 104,180,215 97,020,657 93,167,488 90,544,146 Plan Fiduciary Net Position
Contributions-employer 15,804,838 4,300,785 4,072,920 3,791,023 3,415,348 3,213,198 295,917 2,937,484 2,451,408 Contributions-employees 903,798 908,516 852,662 874,603 796,926 760,087 709,460 712,929 686,870 Net plan to plan resource movement (52,804) - - - (188) - - - - Net investment income (8,335,831) 20,183,976 4,294,558 5,316,832 6,405,074 7,625,528 366,113 1,494,371 10,020,177 Benefit payments (6,353,883) (5,729,725) (5,302,018) (5,004,441) (4,588,971) (4,191,413) (4,206,587) (3,783,672) (3,644,252) Administrative expense (68,151) (89,733) (121,281) (57,883) (340,724) (100,570) (41,645) (76,906) - Other miscellaneous income/(expense) - - - 186 - - - - - Net change in plan fiduciary net position 1,897,967 19,573,819 3,796,841 4,920,320 5,687,465 7,306,830 (2,876,742) 1,284,206 9,514,203 Total plan fiduciary net position-beginning 109,402,175 89,828,356 86,031,515 81,111,195 75,423,730 68,116,900 68,331,642 67,147,436 57,633,233 Total plan fiduciary net position-ending (b) 111,300,142 109,402,175 89,828,356 86,031,515 81,111,195 75,423,730 65,454,900 68,431,642 67,147,436 Net pension liability-ending (a)-(b) 12,027,600 $ 8,941,905 $ 24,363,345 $ 23,996,559 $ 23,018,752 $ 28,756,485 $ 31,565,757 $ 24,735,846 $ 23,396,710 $ Plan fiduciary net position as a percentage of the total pension liability 90.25% 92.44% 78.66% 78.19% 77.39% 72.40% 70.21% 73.34% 74.16 % City's covered-employee payroll 12,146,682 $ 11,735,924 $ 10,586,681 $ 10,064,610 $ 10,080,535 $ 9,434,933 $ 9,643,787 $ 9,090,194 $ 8,260,542 $ Net pension liability as a percentage of covered-employee payroll 99.02% 76.19% 230.13% 238.43% 228.35% 304.79% 299.71% 273.22% 283.23% 1 Net of administrative expenses.

Notes to Schedule:
*The pension schedules are required to show ten years of data and the additional years' information will be displayed as it becomes available Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes.

Changes of assumptions: The discount rate was changed from 7.65 percent (net of administrative expense) to 7.25 percent.

City of Hanford

Required Supplementary Information
Schedule of the City’s Proportionate Share of the Net Pension Liability Last Ten Fiscal Years

-82-
Safety Plan
Employer's
Proportionate Pension's Plan
Employer's Share of the Fiduciary Net
Employer's Proportion Collection Net Position as a
Proportion of Share of the Pension Percentage of
the Collective Collective Net Liability (Asset) the Total Measurement Net Pension Pension as a Percentage Pension Date Liability (Asset)1
Liability (Asset) Covered Payroll of Covered Payroll Liability (Asset) 6/30/2014 0.2402% 14,946,492 $ 6,602,409 $ 226.38% 77.21% 6/30/2015 0.2194% 14,547,172 6,897,272 210.91% 78.71% 6/30/2016 0.2137% 18,487,608 6,409,767 288.43% 74.41% 6/30/2017 0.2115% 20,972,245 6,692,475 313.37% 74.07% 6/30/2018 0.2153% 20,744,090 6,673,847 310.83% 75.73% 6/30/2019 0.2161% 22,146,339 6,889,321 321.46% 75.21% 6/30/2020 0.2249% 24,469,454 9,140,252 267.71% 74.04% 6/30/2021 0.3957% 13,888,402 8,109,211 171.27% 86.06% 6/30/2022 0.1643% 11,290,136 8,380,965 134.71% 90.25% *The pension schedules are required to show ten years of data and the additional years' information will be displayed as it becomes available

City of Hanford

Required Supplementary Information
Schedule of Plan Contributions
Last Ten Years*

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Miscellaneous Plan
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 4,261,698 $ 4,300,785 $ 4,072,920 $ 3,791,023 $ 3,415,348 $ 3,213,198 $ 2,957,917 $ 2,837,484 $ 2,451,408 $ Contributions in relation to the actuarially
determined contribution (15,804,838) (4,300,785) (4,072,920) (3,791,023) (3,415,348) (3,213,198) (2,957,917) (2,837,484) (2,451,408) Contribution deficiency (excess) (11,543,140) $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll 12,146,682 $ 11,735,924 $ 10,586,681 $ 10,064,610 $ 10,080,535 $ 9,434,933 $ 9,643,787 $ 9,090,194 $ 8,260,542 $ Contributions as a percentage of
covered-employee payroll 130.12% 36.65% 38.47% 37.67% 33.88% 34.06% 30.67% 31.21% 29.68% Safety Plan
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 2,422,956 $ 22,748,720 $ 4,062,968 $ 3,451,832 $ 3,067,990 $ 3,064,625 $ 3,728,697 $ 2,859,367 $ 1,937,233 $ Contributions in relation to the actuarially
determined contribution (2,422,956) (22,748,720) (4,062,968) (3,451,832) (3,067,990) (3,064,625) (3,728,697) (2,859,367) (1,937,233) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll 8,380,965 $ 8,109,211 $ 9,140,252 $ 6,889,321 $ 6,673,847 $ 6,692,475 $ 6,409,767 $ 6,897,272 $ 6,602,409 $ Contributions as a percentage of
covered-employee payroll 28.91% 280.53% 44.45% 50.10% 45.97% 45.79% 58.17% 41.46% 29.34% Notes to Schedule:

Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make addition al contributions towards their unfunded liability.

Employer contributions for such plans exceed the actuarially determined contributions. *The pension schedules are required to show ten years of data and the additional years' information will be displayed as it becomes available.

City of Hanford

Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios Last Ten Fiscal Years*

-84-
2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 235,139 $ 310,994 $ 120,203 $ 105,251 $ - $ - $ Interest on total OPEB liability 151,238 88,810 63,027 74,534 47,002 50,391 Differences between expected and actual experience (131,402) 283,719 (1,034,539) 1,034,539 - Changes in assumptions (100,260) (699,772) 1,541,087 141,650 39,397 (6,734) Benefit payments, including refunds of employee contributions (159,927) (142,193) (149,569) (136,950) (153,422) (168,043) Net change in total OPEB liability (5,212) (442,161) 1,858,467 (850,054) 967,516 (124,386) Total Net OPEB liability - beginning 3,943,404 4,385,565 2,527,098 2,342,613 1,375,097 1,499,483 Total Net OPEB liability- ending (a) 3,938,192 3,943,404 4,385,565 1,492,559 2,342,613 1,375,097 Plan Fiduciary Net Position
Contributions- employer - 142,193 149,569 136,950 153,422 168,043 Benefit payments - (142,193) (149,569) (136,950) (153,422) (168,043) Net change in plan fiduciary net position - - - - - - Total plan fiduciary net position - beginning - - - - - - Total plan fiduciary net position - ending (b) - - - - - - Net OPEB liability - ending (a)-(b) 3,938,192 $ 3,943,404 $ 4,385,565 $ 1,492,559 $ 2,342,613 $ 1,375,097 $ Plan fiduciary net position as a percentage of the total OPEB liability 0% 0% 0% 0% 0% 0% City's covered-employee payroll 26,307,809 $ 18,572,290 $ 19,345,356 $ 18,420,461 $ 19,211,409 $ - $ Net OPEB liability as a percentage of covered-employee payroll 14.97% 21.23% 22.67% 13.72% 12.19% 0% Notes to Schedule:
*Historical information is required only for measurement periods for which GASB 75 I applicable. Future years' information will be displayed up to ten years as information becomes available.

City of Hanford

Required Supplementary Information
Schedule of Contributions – OPEB
Last Ten Fiscal Years*

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2023 2022 2021 2020 2019 2018
Actuarially determined contribution 154,219 $ 142,193 $ 149,569 $ 136,950 $ 153,422 $ 168,043 $ Contributions in relation to the (154,219) (142,193) (149,569) (136,950) (153,422) (168,043) actuarially determined contribution
Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ City's covered-employee payroll 26,307,809 $ 18,572,290 $ 19,345,356 $ 18,420,461 $ 19,211,409 $ - $ Contributions as a percentage of
covered-employee payroll 0.59% 0.77% 0.77% 0.74% 0.80% - Notes to Schedule:

Valuation Date June 30, 2023
Funding Method
Asset Valuation
Discount Rate
Participants Valued
Salary Increase
General Inflation Rate 2.50% per year.

Mortality
Mortality Improvement
Healthcare Trend
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-2022 were as follows for the June 30, 2021 measurement date actuarial valuations.

Entry Age Normal Cost, level percent of pay
Market value of assets

3.86% as of June 30, 2023

3.69% as of June 30, 2022
Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation. *Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to ten years as information becomes available.

CalPERS 2017 Experience Study
MacLeod Watts 2020 Scale Generationally

6.8% in 2024, step down to 3.9%% by 2076

3.00% per year, since benefits do not depend on salary, this is used only to allocate the cost of benefits between service years.

City of Hanford

Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) General Fund For the Year Ended June 30, 2023

-86-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 29,558,500 $ 31,834,022 $ 33,411,258 $ 1,577,236 $ Aid from other government agencies 774,797 1,163,941 1,443,000 279,059 Licenses and permits 945,380 1,045,380 1,849,277 803,897 Fines and forfeitures 164,150 120,150 202,822 82,672
Charges for services 2,262,668 2,679,023 3,205,579 526,556 Revenue from use of money and property 3,500 117,500 469,550 352,050 Miscellaneous 1,900 1,900 69,171 67,271
Total Revenues 33,710,895 36,961,916 40,650,657 3,688,741

EXPENDITURES
Current:

General government 938,832 1,995,963 2,971,558 (975,595) Public safety 21,804,791 23,626,708 23,465,277 161,431
Public works 3,080,990 3,379,538 3,071,761 307,777
Recreation 4,338,294 5,058,321 4,670,976 387,345
Community development 1,874,749 2,734,443 2,036,025 698,418 Debt service:

Principal 1,243,300 1,243,300 1,243,300 - Interest - - 1,140,021 (1,140,021) Capital outlay - 9,498,580 541,332 8,957,248 Total Expenditures 33,280,956 47,536,853 39,140,250 8,396,603 Excess (Deficiency) of Revenues
Over (Under) Expenditures 429,939 (10,574,937) 1,510,407 12,085,344

OTHER FINANCING SOURCES (USES)
Transfers in 431,062 3,714,395 3,880,591 166,196 Transfers out (77,197) (77,197) (449,787) (372,590) Proceeds from sale of assets - - 784 784 Total Other Financing Sources (Uses) 353,865 3,637,198 3,431,588 (205,610) Net Change in Fund Balance 783,804 (6,937,739) 4,941,995 11,879,734

FUND BALANCE
Beginning of year, as restated 5,577,091 5,577,091 5,577,091 - End of year 6,360,895 $ (1,360,648) $ 10,519,086 $ 11,879,734 $ General Fund

City of Hanford

Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) CDBG Home/Housing Fund For the Year Ended June 30, 2023

-87-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies 1,100,000 $ 1,100,000 $ 797,092 $ (302,908) $ Revenue from use of money and property 45,000 53,200 328,875 275,675 Miscellaneous 360,000 360,000 1,891 (358,109) Total Revenues 1,505,000 1,513,200 1,127,858 (385,342)

EXPENDITURES
Current:

Community development 1,021,000 1,277,177 354,026 923,151 Capital outlay - 236,322 225,406 10,916 Total Expenditures 1,021,000 1,513,499 579,432 934,067 Excess (Deficiency) of Revenues
Over (Under) Expenditures 484,000 (299) 548,426 548,725

OTHER FINANCING SOURCES (USES)
Transfers in 80,000 80,000 43,117 (36,883) Transfers out - - (169,872) (169,872) Total Other Financing Sources (Uses) 80,000 80,000 (126,755) (206,755) Net Change in Fund Balance 564,000 79,701 421,671 341,970

FUND BALANCE
Beginning of year 20,403,276 20,403,276 20,403,276 - End of year 20,967,276 $ 20,482,977 $ 20,824,947 $ 341,970 $ CDBG/Home/Housing Fund

City of Hanford

Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) Transportation Development Act Fund For the Year Ended June 30, 2023

-88-
Original Final Actual Amount
Variance with
Final Budget

REVENUES
Taxes and special assessments 821,000 $ 821,000 $ 1,423,998 $ 602,998 $ Aid from other government agencies - - 45,918 45,918 Revenue from use of money and property 8,400 37,800 100,397 62,597 Total revenues 829,400 858,800 1,570,313 711,513

EXPENDITURES
Current:

General government - - 5,743 (5,743) Capital outlay 946,129 1,348,553 232,958 1,115,595 Total expenditures 946,129 1,348,553 238,701 1,109,852 Excess (Deficiency) of Revenues
Over (Under) Expenditures (116,729) (489,753) 1,331,612 1,821,365

FUND BALANCE
Beginning of year 6,197,788 6,197,788 6,197,788 - End of year 6,081,059 $ 5,708,035 $ 7,529,400 $ 1,821,365 $ Transportation Development Act Fund

City of Hanford

Required Supplementary Information
Budgetary Comparison Schedule – (GAAP Basis) American Rescue Plan Act Fund For the Year Ended June 30, 2023

-89-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies - $ 6,538,870$ 3,732,941 $ (2,805,929) $ Revenue from use of money and property - - 128,976 128,976 Total Revenues - 6,538,870 3,861,917 (2,676,953)

EXPENDITURES
Current:

General government - 300,000 - 300,000 Capital outlay - 6,173,500 1,049,459 5,124,041 Total Expenditures - 6,473,500 1,049,459 5,424,041 Excess (Deficiency) of Revenues
Over (Under) Expenditures - 65,370 2,812,458 2,747,088

OTHER FINANCING SOURCES (USES)
Transfers out - (2,833,333) (2,833,333) - Total Other Financing Sources (Uses) - (2,833,333) (2,833,333) - Net Change in Fund Balance - (2,767,963) (20,875) 2,747,088

FUND BALANCE
Beginning of year (125,837) (125,837) (125,837) - End of year (125,837) $ (2,893,800) $ (146,712) $ 2,747,088 $ American Rescue Plan Act

City of Hanford

Notes to Budgetary Comparison Required Supplementary Information For the Year Ended June 30, 2023

-90-
Budget and Budgetary Accounting

The procedures established by the City Council in adopting the budgetary data are as follows:

On or before the second meeting in May, the City Manager submits to the City Council a proposed operating and capital projects budget for the fiscal year commencing the following July 1. Following publication and public hearings, the budget is legally enacted by resolution with a copy available on the City’s website.

The City Manager is authorized to transfer funds appropriated with respect to all classifications within the same department. The City Manager may transfer appropriated funds from any classification within other expenditure categories to existing capital outlay and capital projects classifications within the same department only; however, any revisions that alter the total expenditures of any department or create additional projects must be approved by the City Council.

Supplemental budgetary appropriations were negligible for the fiscal year ended June 30, 2023.

All unencumbered appropriations lapse at year-end.

See note 1 for more information regarding the City’s budgetary process.

Excess of expenditures over appropriations

Fund Amount
General Fund
General government (975,595) $
Debt service - interest (1,140,021)
Transportation Development Act Fund
General government (5,743)

SUPPLEMENTARY INFORMATION

This page intentionally left blank.

City of Hanford

Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2023

-91-
CMAQ
Transportation
Fund
Park Impact
Fees Parking Fund
Downtown
Reinvestment
Fund
Landscaping
Assessment
District
ASSETS
Cash and investments - $ 5,705,236$ 405,048 $ 129,399 $ 1,428,329 $ Receivables 210,442 - - - 110,222 Loan receivable - - - 30,381 - Prepaid expenses - - - - - Advances to other funds - - - - - Total Assets 210,442 $ 5,705,236 $ 405,048 $ 159,780 $ 1,538,551 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 2,644 $ - $ - $ - $ 35,973$ Accrued wages payable - - - - - Due to other funds - - - - 52,377 Total Liabilities 2,644 - - - 88,350 Fund Balances (deficit):

Nonspendable:

Loan receivable - - - 30,381 - Prepaid expenses - - - - - Restricted for:

Streets and roads 207,798 - - - - Recreation - 5,705,236 - - - Landscape maintenance - - - - 1,450,201 Public safety - - - - - Committed for:

Parking and business improvement - - 405,048 129,399 - Community development - - - - - Cannabis - - - - - Unassigned - - - - - Total Fund Balances 207,798 5,705,236 405,048 159,780 1,450,201 Total Liabilities and Fund Balances 210,442 $ 5,705,236 $ 405,048 $ 159,780 $ 1,538,551 $ Special Revenue

City of Hanford

Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2023 (continued)

-92-
City Housing
Fund
Central Parking
and Business
Improvement
Fire Protection
Impact Fees
Police
Protection
Impact Fees Special Aviation
ASSETS
Cash and investments 580,796 $ 201,747 $ 741,460 $ 7,535 $ - $ Receivables - 1,286 - - - Loan receivable 1,800,453 - - - - Prepaid expenses - - - - - Advances to other funds - - - - - Total Assets 2,381,249 $ 203,033 $ 741,460 $ 7,535 $ - $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ 20,921$ - $ - $ - $ Accrued wages payable - - - - - Due to other funds - - - 177,932 - Total Liabilities - 20,921 - 177,932 - Fund Balances (deficit):

Nonspendable:

Loan receivable 1,800,453 - - - - Prepaid expenses - - - - - Restricted for:

Streets and roads - - - - - Recreation - - - - - Landscape maintenance - - - - - Public safety - - 741,460 - - Committed for:

Parking and business improvement - 182,112 - - - Community development 580,796 - - - - Cannabis - - - - - Unassigned - - - (170,397) - Total Fund Balances 2,381,249 182,112 741,460 (170,397) - Total Liabilities and Fund Balances 2,381,249 $ 203,033 $ 741,460 $ 7,535 $ - $ Special Revenue

City of Hanford

Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2023 (continued)

-93-
Traffic Safety
Street Tree
Committee
State Gas Tax
Fund
Public Housing
Authority
Transportation
Impact Fees
ASSETS
Cash and investments 101,844 $ 1,218 $ 4,909,525$ 162,520 $ 6,946,046 $ Receivables 9,086 - 352,272 - - Loan receivable - - - - - Prepaid expenses - - - - - Advances to other funds - - - - - Total Assets 110,930 $ 1,218 $ 5,261,797$ 162,520 $ 6,946,046 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $ 1,608 $ 134,054 $ Accrued wages payable - - - 3,010 - Due to other funds - - - - - Total Liabilities - - - 4,618 134,054 Fund Balances (deficit):

Nonspendable:

Loan receivable - - - - - Prepaid expenses - - - - - Restricted for:

Streets and roads - - 5,261,797 - - Recreation - - - - - Landscape maintenance - 1,218 - - - Public safety 110,930 - - - - Committed for:

Parking and business improvement - - - - - Community development - - - 157,902 6,811,992 Cannabis - - - - - Unassigned - - - - - Total Fund Balances 110,930 1,218 5,261,797 157,902 6,811,992 Total Liabilities and Fund Balances 110,930 $ 1,218 $ 5,261,797$ 162,520 $ 6,946,046 $ Special Revenue

City of Hanford

Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2023 (concluded)

-94-
Special Revenue
Cannabis
Operations
Capital Projects
Fund
Total Non-Major
Special Revenue
Funds
ASSETS
Cash and investments 41,309 $ 1,278,662 $ 22,640,674 $ Receivables 84,946 12,559 780,813 Loan receivable - - 1,830,834 Prepaid expenses - 1,100 1,100 Advances to other funds - 1,659,025 1,659,025 Total Assets 126,255 $ 2,951,346 $ 26,912,446 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable - $ 129,100$ 324,300 $ Accrued wages payable - - 3,010 Due to other funds - - 230,309 Total Liabilities - 129,100 557,619 Fund Balances (deficit):

Nonspendable:

Loan receivable - - 1,830,834 Prepaid expenses - 1,100 1,100 Restricted for:

Streets and roads - - 5,469,595 Recreation - - 5,705,236 Landscape maintenance - - 1,451,419 Public safety - - 852,390 Committed for:

Parking and business improvement - 2,821,146 3,537,705 Community development - - 7,550,690 Cannabis 126,255 - 126,255 Unassigned - - (170,397) Total Fund Balances 126,255 2,822,246 26,354,827 Total Liabilities and Fund Balances 126,255 $ 2,951,346 $ 26,912,446 $

City of Hanford

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2023

-95-
CMAQ
Transportation
Fund
Park Impact
Fees Parking Fund
Downtown
Reinvestment
Fund
Landscaping
Assessment
District

REVENUES
Taxes and special assessments - $ 879,418$ - $ - $ 1,087,947$ Aid from other government agencies 189,814 - - - - Fines and forfeitures - - - - - Revenue from use of money and property (4,344) 88,642 (6,417) 3,446 8,276 Miscellaneous - - - - - Total revenues 185,470 968,060 (6,417) 3,446 1,096,223

EXPENDITURES
Current:

General government - 5,008 45,184 123 2,147 Public works - - - - 608,827 Community development - - - - 2,052 Capital outlay 346,727 365,710 - - - Total expenditures 346,727 370,718 45,184 123 613,026 Excess (deficiency) of revenues over expenditures (161,257) 597,342 (51,601) 3,323 483,197

OTHER FINANCING SOURCES (USES)
Transfers in 433,892 - - - - Transfers out - - - - - Loss on lease termination - - (11,319) - - Proceeds from sale of capital assets - - 303,240 - - Total other financing sources (uses) 433,892 - 291,921 - - Net change in fund balance 272,635 597,342 240,320 3,323 483,197

FUND BALANCE (DEFICIT)
Beginning of year (64,837) 5,107,894 164,728 156,457 967,004 End of year 207,798 $ 5,705,236 $ 405,048 $ 159,780 $ 1,450,201 $ Special Revenue

City of Hanford

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2023 (continued)

-96-
City Housing
Fund
Central Parking
and Business
Improvement
Fire Protection
Impact Fees
Police
Protection
Impact Fees Special Aviation

REVENUES
Taxes and special assessments - $ 111,940$ 189,749 $ 114,698 $ - $ Aid from other government agencies - - - - - Fines and forfeitures - - - - - Revenue from use of money and property 28,665 2,398 5,971 12,076 (934) Miscellaneous 13,368 - 13,841 15,146 - Total revenues 42,033 114,338 209,561 141,920 (934)

EXPENDITURES
Current:

General government 560 173 625 33 - Public works - 81,090 - - - Community development 15,960 15,832 - - - Capital outlay - - - 422,555 - Total expenditures 16,520 97,095 625 422,588 - Excess (deficiency) of revenues over expenditures 25,513 17,243 208,936 (280,668) (934)

OTHER FINANCING SOURCES (USES)
Transfers in - - - - - Transfers out - - - - - Loss on lease termination - - - - - Proceeds from sale of capital assets - - - - - Total other financing sources (uses) - - - - - Net change in fund balance 25,513 17,243 208,936 (280,668) (934)

FUND BALANCE (DEFICIT)
Beginning of year 2,355,736 164,869 532,524 110,271 934 End of year 2,381,249 $ 182,112 $ 741,460 $ (170,397) $ - $ Special Revenue

City of Hanford

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2023 (continued)

-97-
Traffic Safety
Street Tree
Committee
State Gas Tax
Fund
Public Housing
Authority
Transportation
Impact Fees

REVENUES
Taxes and special assessments - $ - $ 3,266,751$ - $ 1,701,110$ Aid from other government agencies - - - - - Fines and forfeitures 39,853 - - - - Revenue from use of money and property 487 43 12,869 5,728 84,661 Miscellaneous - - 765 - 28 Total revenues 40,340 43 3,280,385 5,728 1,785,799

EXPENDITURES
Current:

General government 79 - 3,717 - 5,923 Public works - - 7,498 1,261 - Community development - - - 267,675 - Capital outlay - - 1,478,475 635 812,628 Total expenditures 79 - 1,489,690 269,571 818,551 Excess (deficiency) of revenues over expenditures 40,261 43 1,790,695 (263,843) 967,248

OTHER FINANCING SOURCES (USES)
Transfers in - - - 270,096 - Transfers out - - (433,892) - - Loss on lease termination - - - - - Proceeds from sale of capital assets - - - - - Total other financing sources (uses) - - (433,892) 270,096 - Net change in fund balance 40,261 43 1,356,803 6,253 967,248

FUND BALANCE (DEFICIT)
Beginning of year 70,669 1,175 3,904,994 151,649 5,844,744 End of year 110,930 $ 1,218 $ 5,261,797$ 157,902 $ 6,811,992 $ Special Revenue

City of Hanford

Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Special Revenue Funds
For the Year Ended June 30, 2023 (concluded)

-98-
Special Revenue
Cannabis
Operations
Capital Projects
Fund
Total Non-Major
Special Revenue
Funds

REVENUES
Taxes and special assessments 1,040,549 $ 32,728 $ 8,424,890 $ Aid from other government agencies - - 189,814 Fines and forfeitures - - 39,853 Revenue from use of money and property 4,437 62,142 308,146 Miscellaneous 33,102 2,257 78,507 Total revenues 1,078,088 97,127 9,041,210

EXPENDITURES
Current:

General government - 1,419 64,991 Public works - - 698,676 Community development 25,000 - 326,519 Capital outlay 1,392 884,841 4,312,963 Total expenditures 26,392 886,260 5,403,149 Excess (deficiency) of revenues over expenditures 1,051,696 (789,133) 3,638,061

OTHER FINANCING SOURCES (USES)
Transfers in - - 703,988 Transfers out (1,047,259) - (1,481,151) Loss on lease termination - - (11,319) Proceeds from sale of capital assets - - 303,240 Total other financing sources (uses) (1,047,259) - (485,242) Net change in fund balance 4,437 (789,133) 3,152,819

FUND BALANCE (DEFICIT)
Beginning of year 121,818 3,611,379 23,202,008 End of year 126,255 $ 2,822,246 $ 26,354,827 $

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual CMAQ Transportation Fund
For the Year Ended June 30, 2023

-99-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies - $ 357,000$ 189,814 $ (167,186) $ Revenue from use of money and property - - (4,344) (4,344) Total revenues - 357,000 185,470 (171,530)

EXPENDITURES
Current:

Capital outlay 457,592 1,019,107 346,727 672,380 Total expenditures 457,592 1,019,107 346,727 672,380
Excess (deficiency) of revenues
over (under) expenditures (457,592) (662,107) (161,257) 500,850

OTHER FINANCING SOURCES (USES)
Transfers in - - 433,892 433,892 Total other financing sources (uses) - - 433,892 433,892 Net change in fund balance (457,592) (662,107) 272,635 934,742

FUND BALANCE
Beginning of year (64,837) (64,837) (64,837) - End of year (522,429) $ (726,944) $ 207,798 $ 934,742 $ CMAQ Transportation Fund

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Park Impact Fees Fund
For the Year Ended June 30, 2023

-100-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 268,700 $ 268,700 $ 879,418 $ 610,718 $ Revenue from use of money and property 33,170 41,400 88,642 47,242 Total revenues 301,870 310,100 968,060 657,960

EXPENDITURES
Current:

General government - - 5,008 (5,008) Capital outlay 507,014 2,489,898 365,710 2,124,188 Total expenditures 507,014 2,489,898 370,718 2,119,180
Excess (deficiency) of revenues
over (under) expenditures (205,144) (2,179,798) 597,342 2,777,140

FUND BALANCE
Beginning of year 5,107,894 5,107,894 5,107,894 -
End of year 4,902,750 $ 2,928,096 $ 5,705,236 $ 2,777,140 $ Park Impact Fees

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Parking Fund
For the Year Ended June 30, 2023

-101-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Revenue from use of money and property 11,162 $ 1,300 $ (6,417) $ (7,717) $ Total revenues 11,162 1,300 (6,417) (7,717)

EXPENDITURES
Current:

General government - 45,000 45,184 (184) Total expenditures - 45,000 45,184 (184) Excess (deficiency) of revenues
over (under) expenditures 11,162 (43,700) (51,601) (7,901)

OTHER FINANCING SOURCES (USES)
Loss on lease termination - - (11,319) (11,319) Proceeds from sale of assets - - 303,240 303,240 Total other financing sources (uses) - - 291,921 291,921 Net change in fund balance 11,162 (43,700) 240,320 284,020

FUND BALANCE
Beginning of year 164,728 164,728 164,728 -
End of year 175,890 $ 121,028 $ 405,048 $ 284,020 $ Parking Fund

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Downtown Reinvestment Fund
For the Year Ended June 30, 2023

-102-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Revenue from use of money and property 2,030 $ 2,180 $ 3,446 $ 1,266 $ Miscellaneous 4,530 4,530 - (4,530) Total revenues 6,560 6,710 3,446 (3,264)

EXPENDITURES
Current:

General government - - 123 (123) Total expenditures - - 123 (123) Excess (deficiency) of revenues
over (under) expenditures 6,560 6,710 3,323 (3,387)

FUND BALANCE
Beginning of year 156,457 156,457 156,457 -
End of year 163,017 $ 163,167 $ 159,780 $ (3,387) $ Downtown Reinvestment Fund

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Landscaping Assessment District Fund
For the Year Ended June 30, 2023

-103-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 893,790 $ 893,790 $ 1,087,947 $ 194,157 $ Revenue from use of money and property - - 8,276 8,276 Total revenues 893,790 893,790 1,096,223 202,433

EXPENDITURES
Current:

General government - - 2,147 (2,147) Public works 678,070 692,650 608,827 83,823 Community development 41,820 41,820 2,052 39,768 Total expenditures 719,890 734,470 613,026 121,444 Excess (deficiency) of revenues
over (under) expenditures 173,900 159,320 483,197 323,877

FUND BALANCE
Beginning of year 967,004 967,004 967,004 -
End of year 1,140,904 $ 1,126,324 $ 1,450,201 $ 323,877 $ Landscaping Assessment District

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual City Housing Fund
For the Year Ended June 30, 2023

-104-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Revenue from use of money and property - $ 4,000 $ 28,665 $ 24,665 $ Miscellaneous 20,000 20,000 13,368 (6,632) Total revenues 20,000 24,000 42,033 18,033

EXPENDITURES
Current:

General government - - 560 (560) Community development 20,000 20,000 15,960 4,040 Total expenditures 20,000 20,000 16,520 3,480 Excess (deficiency) of revenues
over (under) expenditures - 4,000 25,513 21,513

FUND BALANCE
Beginning of year 2,355,736 2,355,736 2,355,736 - End of year 2,355,736 $ 2,359,736 $ 2,381,249 $ 21,513 $ City Housing Fund

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Central Parking and Business Improvement Fund
For the Year Ended June 30, 2023

-105-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 90,000 $ 90,000 $ 111,940 $ 21,940 $ Revenue from use of money and property - 750 2,398 1,648 Total revenues 90,000 90,750 114,338 23,588

EXPENDITURES
Current:

General government - - 173 (173) Public works 81,090 81,090 81,090 - Community development - 22,000 15,832 6,168 Capital outlay 10,380 20,380 - 20,380 Total expenditures 91,470 123,470 97,095 26,375 Excess (deficiency) of revenues (1,470) (32,720) 17,243 49,963 over (under) expenditures

FUND BALANCE
Beginning of year 164,869 164,869 164,869 -
End of year 163,399 $ 132,149 $ 182,112 $ 49,963 $ Central Parking and Business Improvement Fund

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Fire Protection Impact Fees Fund
For the Year Ended June 30, 2023

-106-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 107,156 $ 107,156 $ 189,749 $ 82,593 $ Revenue from use of money and property 7,000 2,700 5,971 3,271 Miscellaneous - - 13,841 13,841 Total revenues 114,156 109,856 209,561 99,705

EXPENDITURES
Current:

General government - - 625 (625) Total expenditures - - 625 (625) Excess (deficiency) of revenues
over (under) expenditures 114,156 109,856 208,936 99,080

FUND BALANCE
Beginning of year 532,524 532,524 532,524 -
End of year 646,680 $ 642,380 $ 741,460 $ 99,080 $ Fire Protection Impact Fees

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Police Protection Impact Fees Fund
For the Year Ended June 30, 2023

-107-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 100,000 $ 100,000 $ 114,698 $ 14,698 $ Revenue from use of money and property 4,830 3,200 12,076 8,876 Miscellaneous - - 15,146 15,146 Total revenues 104,830 103,200 141,920 38,720

EXPENDITURES
Current:

General government - - 33 (33) Capital outlay - 453,044 422,555 30,489 Total expenditures - 453,044 422,588 30,456 Excess (deficiency) of revenues
over (under) expenditures 104,830 (349,844) (280,668) 69,176

FUND BALANCE
Beginning of year 110,271 110,271 110,271 -
End of year 215,101 $ (239,573) $ (170,397) $ 69,176 $ Police Protection Impact Fees

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Special Aviation Fund
For the Year Ended June 30, 2023

-108-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Aid from other government agencies - $ 10,000$ - $ (10,000)$ Revenue from use of money and property - - (934) (934) Total revenues - 10,000 (934) (10,934)

EXPENDITURES
Capital outlay 2,867,262 - - - Total expenditures 2,867,262 - - - Excess (deficiency) of revenues
over (under) expenditures (2,867,262) 10,000 (934) (10,934)

FUND BALANCE
Beginning of year 934 934 934 -
End of year (2,866,328) $ 10,934 $ - $ (10,934)$ Special Aviation

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Traffic Safety Fund
For the Year Ended June 30, 2023

-109-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Fines and forfeitures 27,580 $ 41,580 $ 39,853 $ (1,727) $ Revenue from use of money and property - - 487 487 Total revenues 27,580 41,580 40,340 (1,240)

EXPENDITURES
Current:

General government - - 79 (79) Total expenditures - - 79 (79) Excess (deficiency) of revenues
over (under) expenditures 27,580 41,580 40,261 (1,319)

FUND BALANCE
Beginning of year 70,669 70,669 70,669 -
End of year 98,249 $ 112,249 $ 110,930 $ (1,319) $ Traffic Safety

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Street Tree Committee Fund
For the Year Ended June 30, 2023

-110-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Revenue from use of money and property - $ - $ 43 $ 43 $ Total revenues - - 43 43 Excess (deficiency) of revenues
over (under) expenditures - - 43 43

FUND BALANCE
Beginning of year 1,175 1,175 1,175 -
End of year 1,175 $ 1,175 $ 1,218 $ 43 $ Street Tree Committee

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual State Gas Tax Fund
For the Year Ended June 30, 2023

-111-
Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 2,348,281 $ 2,348,281 $ 3,266,751 $ 918,470 $ Revenue from use of money and property 11,750 16,000 12,869 (3,131) Miscellaneous - 243,020 765 (242,255) Total revenues 2,360,031 2,607,301 3,280,385 673,084

EXPENDITURES
Current:

General government - - 3,717 (3,717) Public works 7,500 7,500 7,498 2 Capital outlay 1,995,350 4,712,945 1,478,475 3,234,470 Total expenditures 2,002,850 4,720,445 1,489,690 3,230,755 Excess (deficiency) of revenues
over (under) expenditures 357,181 (2,113,144) 1,790,695 3,903,839

OTHER FINANCING SOURCES (USES)
Transfers out (340,000) (340,000) (433,892) (93,892) Total other financing sources (uses) (340,000) (340,000) (433,892) (93,892) Net change in fund balance 17,181 (2,453,144) 1,356,803 3,809,947

FUND BALANCE
Beginning of year 3,904,994 3,904,994 3,904,994 - End of year 3,922,175 $ 1,451,850 $ 5,261,797 $ 3,809,947 $ State Gas Tax Fund

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Public Housing Authority Fund
For the Year Ended June 30, 2023

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Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments - $ - $ 1,701,110$ 1,701,110 $ Revenue from use of money and property 700 25,000 84,661 59,661 Miscellaneous 90,000 90,000 28 (89,972) Total revenues 90,700 115,000 1,785,799 1,670,799

EXPENDITURES
Current:

General government - - 5,923 (5,923) Community development 268,137 279,506 - 279,506 Capital outlay - - 812,628 (812,628) Total expenditures 268,137 279,506 818,551 (539,045) Excess (deficiency) of revenues
over (under) expenditures (177,437) (164,506) 967,248 1,131,754

OTHER FINANCING SOURCES (USES)
Transfers in 227,130 227,130 - (227,130) Total other financing sources (uses) 227,130 227,130 - (227,130) Net change in fund balance 49,693 62,624 967,248 904,624

FUND BALANCE
Beginning of year 5,844,744 5,844,744 5,844,744 - End of year 5,894,437 $ 5,907,368 $ 6,811,992 $ 904,624 $ Public Housing Authority

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Transportation Impact Fees Fund
For the Year Ended June 30, 2023

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Original Final Actual Amount
Variance with
Final Budget

REVENUES
Taxes and special assessments 763,000 $ 763,000 $ 1,701,110 $ 938,110 $ Revenue from use of money and property 38,510 45,200 84,661 39,461 Miscellaneous - - 28 28 Total revenues 801,510 808,200 1,785,799 977,599

EXPENDITURES
Current:

General government - - 5,923 (5,923) Capital outlay 1,757,159 4,040,046 812,628 3,227,418 Total expenditures 1,757,159 4,040,046 818,551 3,221,495 Excess (deficiency) of revenues
over (under) expenditures (955,649) (3,231,846) 967,248 4,199,094

FUND BALANCE
Beginning of year 5,844,744 5,844,744 5,844,744 - End of year 4,889,095 $ 2,612,898 $ 6,811,992 $ 4,199,094 $ Transportation Impact Fees

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Cannabis Operations Fund
For the Year Ended June 30, 2023

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Original
Budget
Final
Budget Actual
Variance with
Final Budget

REVENUES
Taxes and special assessments 250,000 $ 900,000 $ 1,040,549 $ 140,549 $ Revenue from use of money and property - - 4,437 4,437 Miscellaneous 96,000 96,000 33,102 (62,898) Total revenues 346,000 996,000 1,078,088 82,088

EXPENDITURES
Current:

Community development 44,000 44,000 25,000 19,000 Capital outlay 1,390 1,390 1,392 (2) Total expenditures 45,390 45,390 26,392 18,998 Excess (deficiency) of revenues
over (under) expenditures 300,610 950,610 1,051,696 101,086

OTHER FINANCING SOURCES (USES)
Transfers out (300,610) (950,610) (1,047,259) (96,649) Total other financing sources (uses) (300,610) (950,610) (1,047,259) (96,649) Net change in fund balance - - 4,437 4,437

FUND BALANCE
Beginning of year 121,818 121,818 121,818 -
End of year 121,818 $ 121,818 $ 126,255 $ 4,437 $ Cannabis Operations

City of Hanford

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual Capital Projects Fund
For the Year Ended June 30, 2023

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Original Final Actual Amount
Variance with
Final Budget

REVENUES
Taxes and special assessments - $ 15,000$ 32,728 $ 17,728 $ Aid from other government agencies 2,500 - - - Revenue from use of money and property 30,000 28,000 62,142 34,142 Miscellaneous - - 2,257 2,257 Total revenues 32,500 43,000 97,127 54,127

EXPENDITURES
General Government - - 1,419 (1,419) Capital outlay 1,102,041 2,076,458 884,841 1,191,617 Total expenditures 1,102,041 2,076,458 886,260 1,190,198 Excess (deficiency) of revenues
over (under) expenditures (1,069,541) (2,033,458) (789,133) 1,244,325

FUND BALANCE
Beginning of year 3,611,379 3,611,379 3,611,379 - End of year 2,541,838 $ 1,577,921 $ 2,822,246 $ 1,244,325 $ Capital Projects Fund

City of Hanford

Combining Statement of Net Position
Internal Service Funds
June 30, 2023

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City Payroll Fund
Risk Management
Fund
Computer
Maintenance Fund
ASSETS
Current assets
Cash and investments 1,048,383 $ 6,329,685 $ 283,372 $ Receivables 45,205 45,828 - Deposits - 185,000 - Prepaid expenses - 4,800 - Inventory - - - Total current assets 1,093,588 6,565,313 283,372 Noncurrent assets
Capital assets:

Building and improvements - - - Machinery and equipment - - 1,716,635 Right to use assets - - 307,217 Accumulated depreciation - - (883,530) Accumulated amortization - - (181,509) Total capital assets (net of accumulated depreciation) - - 958,813 Total noncurrent assets - - 958,813 Total assets 1,093,588 6,565,313 1,242,185

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions - - 113,995 Total deferred outflows of resources - - 113,995

LIABILITIES
Current Liabilities
Accounts payable 497,960 181,906 3,562 Salaries and benefits payable 586,583 - 5,349 Due to other funds - - 337,695 Compensated absences - current portion - - 17,122 Bonds and notes payable - current portion - - 9,614 SBITA payable - - 100,367 Total current liabilities 1,084,543 181,906 473,709
Noncurrent Liabilities
Claims payable - 5,776,000 - Bonds and notes payable - - 149,590 Net pension liability - - 146,737 SBITA payable - - - Total noncurrent liabilities - 5,776,000 296,327 Total liabilities 1,084,543 5,957,906 770,036

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions - - 14,851 Total deferred inflows of resources - - 14,851

NET POSITION (DEFICIT)
Net investment in capital assets - - 958,813 Unrestricted 9,045 607,407 (387,520) Total net position 9,045 $ 607,407 $ 571,293 $

(concluded)

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Building Fund
Fleet Management
Fund Medical Fund Totals
1,319,543$ 16,788,678 $ 1,014,124 $ 26,783,785 $ 6,141 3,942 606 101,722 - - - 185,000 - - - 4,800 - 319,709 - 319,709 1,325,684 17,112,329 1,014,730 27,395,016 644,586 26,191 - 670,777 229,583 15,464,628 - 17,410,846 - - - 307,217 (297,622) (9,933,685) - (11,114,837) - - - (181,509) 576,547 5,557,134 - 7,092,494 576,547 5,557,134 - 7,092,494 1,902,231 22,669,463 1,014,730 34,487,510 211,170 325,165 - 650,330 211,170 325,165 - 650,330 34,680 68,320 267,401 1,053,829 7,974 12,625 - 612,531 - 137,941 - 475,636 17,309 24,441 - 58,872 22,827 32,320 - 64,761 - - - 100,367 82,790 275,647 267,401 2,365,996 - - - 5,776,000 355,173 502,891 - 1,007,654 271,824 418,560 - 837,121 - - - - 626,997 921,451 - 7,620,775 709,787 1,197,098 267,401 9,986,771 27,511 42,362 - 84,724 27,511 42,362 - 84,724 576,547 5,557,134 - 7,092,494 799,556 16,198,034 747,329 17,973,851 1,376,103$ 21,755,168 $ 747,329 $ 25,066,345$

City of Hanford

Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2023

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City Payroll
Fund
Risk
Management
Fund
Computer
Maintenance
Fund

OPERATING REVENUES
Charges for services -$ 865,717$ 615,510 $ Other revenues - 67,616 - Total operating revenues - 933,333 615,510

OPERATING EXPENSES
Personnel services - - 330,605 Services and supplies 890 1,118,716 112,063 Depreciation and amortization - - 446,124 Total operating expenses 890 1,118,716 888,792 Operating income (loss) (890) (185,383) (273,282)

NON-OPERATING REVENUES (EXPENSES)
Interest income 23,801 146,234 7,198 Interest expense - - (7,498) Unrealized gain (loss) on investments (9,100) (31,138) (9,165) Gain/(loss) on disposals - - - Total non-operating revenue (expenses) 14,701 115,096 (9,465) Income (loss) before capital contributions and transfers 13,811 (70,287) (282,747) Transfers in/(out) - - - Change in net position 13,811 (70,287) (282,747)

NET POSITION (DEFICIT)
Beginning of year (4,766) 677,694 854,040 End of year 9,045 $ 607,407 $ 571,293 $

(concluded)

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Building Fund
Fleet
Management
Fund Medical Fund Totals
1,148,733$ 5,696,687 $ 3,087,216 $ 11,413,863$ 1,015 11,144 2,345 82,120 1,149,748 5,707,831 3,089,561 11,495,983 579,071 954,969 - 1,864,645 381,325 3,402,142 3,165,391 8,180,527 72,253 905,685 - 1,424,062 1,032,649 5,262,796 3,165,391 11,469,234 117,099 445,035 (75,830) 26,749 21,924 407,570 10,826 617,553 (17,660) (25,005) - (50,163) 4,383 (161,130) - (206,150) - (12,520) - (12,520) 8,647 208,915 10,826 348,720 125,746 653,950 (65,004) 375,469 (47,700) 110,937 - 63,237 78,046 764,887 (65,004) 438,706 1,298,057 20,990,281 812,333 24,627,639 1,376,103$ 21,755,168 $ 747,329 $ 25,066,345 $

City of Hanford

Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023

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City Payroll Fund
Risk Management
Fund
Computer
Maintenance Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received for current services (45,205) $ 819,889 $ 615,510 $ Cash received for other operating revenues - 67,616 - Cash paid for services and supplies 473,557 (910,112) (122,532) Cash paid for salaries and benefits (319,746) - (267,860) Net cash provided (used) by operating activities 108,606 (22,607) 225,118

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers (to)/from other funds - - - Loans from/(to) other funds - - 39,010 Net cash provided (used) by non-capital financing activities - - 39,010

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on long-term debt - - (6,545) Interest payments on long-term debt - - (7,498) Capital expenditures - - (126,754) SBITA payments - - (206,850) Net cash provided (used) by capital and related financing activities - - (347,647)

CASH FLOWS FORM INVESTING ACTIVITIES
Unrealized gain (loss) on investments (9,100) (31,138) (9,165) Interest received 23,801 146,234 7,198 Net cash provided (used) by investing activities 14,701 115,096 (1,967) Net increase (decrease) in cash and investments 123,307 92,489 (85,486) Cash and investments, beginning of year 925,076 6,237,196 368,858 Cash and investments, end of year 1,048,383 $ 6,329,685 $ 283,372 $ Reconciliation to Statement of Net Position:

Cash and investments 1,048,383 $ 6,329,685 $ 283,372 $ Total cash and investments 1,048,383 $ 6,329,685 $ 283,372 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (890)$ (185,383)$ (273,282) $ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation - - 446,124 (Increase) decrease in:

Receivables (45,205) (45,828) - Deposits - (10,000) - Prepaids - (4,800) - Inventory - - - Deferred outflow of resources - - 70,969 Accounts payable 474,447 36,404 (10,469) Salaries and benefits payable (319,746) - 3,891 Compensated absences - - 17,122 Claims payable - 187,000 - Net pension liability - - 86,305 Deferred inflow of resources - - (115,542) Total Adjustments 109,496 162,776 498,400 Net Cash provided (used) by operating activities 108,606 $ (22,607) $ 225,118 $

(concluded)

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Building Fund
Fleet Management
Fund Medical Fund Totals
1,142,592$ 5,693,635 $ 3,164,465 $ 11,390,886 $ 1,015 11,144 2,345 82,120 (356,920) (2,835,347) (2,944,175) (6,695,529) (549,761) (820,730) (85,894) (2,043,991) 236,926 2,048,702 136,741 2,733,486 (47,700) 110,937 - 63,237 - 137,941 - 176,951 (47,700) 248,878 - 240,188 (15,540) (22,003) - (44,088) (17,660) (25,005) - (50,163) (14,755) (152,327) - (293,836) - - - (206,850) (47,955) (199,335) - (594,937) 4,383 (161,130) - (206,150) 21,924 407,570 10,826 617,553 26,307 246,440 10,826 411,403 167,578 2,344,685 147,567 2,790,140 1,151,965 14,443,993 866,557 23,993,645 1,319,543$ 16,788,678 $ 1,014,124 $ 26,783,785 $ 1,319,543$ 16,788,678 $ 1,014,124 $ 26,783,785 $ 1,319,543$ 16,788,678 $ 1,014,124 $ 26,783,785 $ 117,099$ 445,035 $ (75,830) $ 26,749 $ 72,253 905,685 - 1,424,062 (6,141) (3,052) 77,249 (22,977) - - - (10,000) 180 2,207 - (2,413) - 649,822 - 649,822 237,558 288,471 - 596,998 24,225 (85,234) 221,216 660,589 6,384 9,915 (85,894) (385,450) (4,610) (18,342) - (5,830) - - - 187,000 55,320 222,565 - 364,190 (265,342) (368,370) - (749,254) 119,827 1,603,667 212,571 2,706,737 236,926$ 2,048,702 $ 136,741 $ 2,733,486 $

City of Hanford

Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023

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Renters' Miscellaneous
Civil Insurance COE Park Deposits
Subpoena Deposits Deposits Trust Total
ASSETS
Cash and investments 327,483 $ 4,034 $ 488 $ 1,442,741$ 1,774,746 $ Accounts receivable - - - 18,920 18,920 Total Assets 327,483 4,034 488 1,461,661 1,793,666

LIABILITIES
Accounts payable 4,650 - - 499,973 504,623 Deposits held for others 383,029 835 - 881,435 1,265,299 Total Liabilities 387,679 835 - 1,381,408 1,769,922

NET POSITION (DEFICIT)
Restricted (60,196) 3,199 488 80,253 23,744 Total Net Position (60,196) $ 3,199 $ 488 $ 80,253 $ 23,744 $

City of Hanford

Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023

-123-
Renters' Miscellaneous
Civil Insurance COE Park Deposits
Subpoena Deposits Deposits Trust Total

ADDITIONS
Unrealized gain on investments 1,609$ 138 $ 17 $ 50,714$ 52,478 $ Other additions 9,856 171 - 149 10,176 Total Additions 11,465 309 17 50,863 62,654

DEDUCTIONS
General government - - - 250 250 Total Deductions - - - 250 250 Change in Fiduciary Net Position 11,465 309 17 50,613 62,404

NET POSITION (DEFICIT)
Beginning of year, as restated (71,661) 2,890 471 29,640 (38,660) End of year (60,196) $ 3,199 $ 488 $ 80,253 $ 23,744 $

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May 20, 2024

To the Honorable City Council
City of Hanford
Hanford, California

We have audited the financial statements of City of Hanford (the City) as of and for the year ended June 30, 2023, and have issued our report thereon dated May 20, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated May 3, 2023, our responsibility, as described by prof essional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

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Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, and our firm have complied with all relevant ethical requirements regarding independence.

Significant Risks Identified

We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting : Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition: Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue.

Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 of the financial statements, during the year, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements during 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

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Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgment s. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are:

Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the depreciation expense is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net pension liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net OPEB liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of leases receivable, deferred inflows of resources related to leases, and lease amortization is based on present value calculations using certain terms and assumptions in the lease agreements in accordance with generally accepted accounting principles. Management’s estimate of lease and subscription liabilities, right-to-use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the lease agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease and subscription related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

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The disclosure of accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosure of net pension liability and rela ted deferred inflows and outflows in the notes to the financial statements is based on actuar ial assumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of net OPEB liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial as sumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of leases receivable, deferred inflows of resources related to leases, lease/subscription amortization, leases/subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the lease agreements which could differ from actual amounts.

The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We did not identify any uncorrected misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. Two of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. See attached schedule.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in the attached letter dated May 20, 2024.

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Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports

Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City's audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact.

Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council and Management of the City and is not intended to be and should not be used by anyone other than these specified parties.

San Bernardino, California
May 20, 2024

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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

Independent Auditor's Report

To the Honorable City Council
City of Hanford
Hanford, California

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements
of the governmental
activities, the business-type acti vities, the aggregate remaining fund information and each major fund of the City of Hanford (the City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated May 20, 2024.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of ex pressing our opinions on the financial statements, but not for the purpos e of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to preven t, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entit y’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whet her the City’s financial statements are free from material misstatement, we performed tests of its complia nce with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Howeve r, providing an opinion on compliance with those provisions was not an objective of our audit and, ac cordingly, we do not express such an opinion. The results of our tests disclosed no in stances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal c ontrol and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
May 20, 2024

- 1 -

May 20, 2024

Management of the City of Hanford
Hanford, California

In planning and performing our audit of the financial statements of the City of Hanford (the City) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses. However, as discussed below, we identified certain matters involving the internal control and other operational matters that are presented for your consideration.

This letter does not affect our report dated May 20, 2024 on the financial statements of the City. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with appropriate members of management, are intended to improve the internal control or result in other operating efficiencies. Our comments are summarized as follows:

- 2 -
Finding 1- Payroll

Condition and context:

During our audit, we noted that there was a lack of segregation of duties in the City’s accounting process over pay rates and lack of documentation of preparer and reviewer process over payroll registers. Proper segregation of duties dictate that the functions of recording, authorization, custody and execution are not dominated by one individual. Adequately segregated duties and proper documentation help to reduce the possibility of fraud and defalcations from occurring and to ensure the integrity of the information provided by the City’s financial reporting system.

Recommendation:

In order to provide greater controls over this area, we suggest that someone outside the payroll process input payrate changes into the payroll system and individuals in charge of processing and finalizing payroll sign and date payroll registers as proof of review.

Management Response to Finding:

Management concurs with this recommendation and will immediately implement segregation of duties by requiring someone outside the payroll process will input or verify salary changes in the system each pay period. Additionally, an outside review of the payroll register prior to finalization will be added as a standard procedure. This will add greater internal control over payroll registers in addition to a second staff person in the Payroll Division that occurred this fiscal year to mitigate control one person could have.

We believe that the implementation of these recommendations will provide the City with a stronger system of internal control while also making its operations more efficient. We will be happy to discuss the details of these recommendations with you at your convenience.

This communication is intended solely for the information and use of management and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully,

San Bernardino, California

-1-
Independent
Accountant’s Report
To the Honorable City Council
City of Hanford
Hanford, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Hanford, California (the City) for the year ended June 30, 2023. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors inclu ded in those
worksheets
to the limit and annual adjustment factors that
were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of
our
procedures.

2. For the accompanying Appropriations Limit Worksheet, w e added last
year’s limit to total adjustments and agreed the
resulting amount to this year’s limit.

Finding: N
o exceptions were noted as a result of our
procedures.

-2-

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the o
ther documents referenced in number one above.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to t
he prior year appropriations limit adopted by the City
Council during the prior year.

Finding: No
exceptions were noted as a result of our procedures.

We were e
ngaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2023. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City of Hanford, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

San Bernardino, California
May 20, 2024

-3-

CITY OF HANFORD

APPROPRIATIONS LIMIT WORKSHEET
2022-2023

Change in Per Capita Cost of Living 7.55%
Change in City Population -0.42%
Change in Per Capita Cost of Living converted to a ratio 1.0755 Change in City Population converted to a ratio 0.9958
Calculation of factor for ratio of change (1.0755 x 0.9958) 1.0710 2021-2022 Limit 77,092,659 $
Adjustment for Inflation & Population 5,473,579
2022-2023 Limit ($ 77,092,659 + $5,473,579) 82,566,238 $

14.P.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approve a change order request in the amount of $6,800 for the purchase of supplies from HD Supply, Inc in Fiscal Year 2023/2024 (FY 23/24).

RECOMMENDATION:

Recommendation:That City Council, by motion, approves the change order request in the amount of $6,800 for the purchase of supplies from HD Supply, Inc in FY 23/24.

Recommended Motion: I motion to approve the Purchase Order Change Order request in the amount of $6,800 for the purchase of supplies from HD Supply, Inc in FY 23/24.

BACKGROUND:

Per the City of Hanford Purchasing Policy, all purchase orders exceeding $50,000 require the City Council's approval. Purchase order 22400335 (HD Supply, Inc. formerly Home Depot Pro) was initially issued for an anticipated amount of less than $50,000. However, the cost of purchasing materials and supplies for day to day department operations has increased, causing the need for the PO to be increased to $54,800.

FISCAL IMPACT:

This purchase order change order totals $6,800. These expenses will come from previously approved budget appropriations across the departments utilizing the purchase order for FY 23/24.

ATTACHMENTS:

None

15.A.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: PUBLIC HEARING

SUBJECT:

Public Hearing and Adoption of Resolution 24-13-R to approve the comprehensive Master Fee Schedule for Fiscal Year 2024-25 which includes proposed new fees, deletions of fees and increases/adjustments to existing fees.

RECOMMENDATION:

Recommendation:

That the City Council conduct a public hearing and adopt Resolution 24-13-R for the City of Hanford Master Fee Schedule for Fiscal Year 2024-25 which includes proposed new fees, deletion of fees, and increases/adjustments to existing fees.

Recommended Motion: I move to adopt Resolution 24-13-R for the City of Hanford Master Fee Schedule.

BACKGROUND:

The previous Master Fee Schedule update for Fiscal Year 2023-24 was accepted and approved by Resolution as of June 20, 2023. Annually, the City Council is brought an updated Master Fee Schedule for review. During general business of the special meeting held on May 16, 2024, a review of the draft Fiscal Year 2024-25 Master Fee Schedule took place. Based on Council's recommendations at the special meeting, the following changes have been made. • Addition of non-residential fee for Parks and Community Service Indoor Facility Civic Grounds Rental Fee of $1,375.00 per day.
• Reduction of Fire Department Fireworks Booth Admin Inspection to $190.00.

At today's public hearing, adoption of Resolution 24-13-R will take place for the final Fiscal Year 2024-25 Master Fee Schedule. Fees would take effect July 1, 2024 or 60 days after adoption for impact fees, which would be August 3, 2024.

All fees have been reviewed and, as appropriate, had a minimum cost recovery adjustment, except for Impact Fees and Business Tax. City ordinances limit annual Impact Fee and Business Tax adjustments to specific California Consumer Price Indexes (CPI) or voter approved changes. Annual inflationary adjustments help the City cover costs and lessen the burden on the General Fund so that the Fund will be available to cover critical operations including public safety. Generally, most adjustments to rates and fees are based on established annual indexes, including the following:
• California Consumer Price Index (CCPI)

• Engineering News Record Construction Costs Index (ENRCCI) • U.S. Consumer Price Index - Urban Consumers (CPI-U)

In addition to these indexes, some rates and fees are also adjusted using other bases to determine fees.

For example, the following bases are also used in limited cases to adjust rates and fees:
• Cost of providing service
• Cost reimbursement
• Survey of fees from surrounding communities
• Special surcharges due to specific costs
• Subsidy by the General Fund
• Rounding

All City Department's rates and fees were reviewed with City Council at its May 16, 2024 meeting for the Fiscal Year 2024-25 Fee Schedule. After discussion and feedback on May 16th the Schedule has been updated, presented for a Public Hearing and final adoption.

FISCAL IMPACT:

The proposed fee increases are set to fund projects and recover the costs of services provided by the City.

ATTACHMENTS:

1. FY 2024-25 MASTER FEE SCHEDULE

2. Summary of Changes

3. Resolution 24-13-R

4. Public Hearing Notice -Master Fee Sched #1

5. Public Hearing Notice -Master Fee Sched #2

MASTER FEE SCHEDULE
FISCAL YEAR 2024-25

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

TABLE OF CONTENTS

FINANCE DEPARTMENT ........................................................................................................... 3 HUMAN RESOURCES DEPARTMENT ...................................................................................... 6 PARKS AND COMMUNITY SERVICES ...................................................................................... 7 INDOOR FACILITY.................................................................................................................. 7 LONGFIELD CENTER GYM MEMBERSHIP ................................................................................... 7 OUTDOOR FACILITY .............................................................................................................. 8 CAROUSEL AND FIRE TRUCKS ............................................................................................ 9 WINTER WONDERLAND ........................................................................................................ 9 PROGRAMS AND EVENTS .................................................................................................. 10 FIRE DEPARTMENT ................................................................................................................ 11 POLICE DEPARTMENT ............................................................................................................ 14 CANNABIS DIVISION ............................................................................................................... 17 COMMUNITY DEVELOPMENT DEPARTMENT ....................................................................... 18 PLANNING DIVISION ........................................................................................................... 18 BUILDING DIVISION ............................................................................................................. 20 CODE COMPLIANCE DIVISION ........................................................................................... 27 DEVELOPMENT IMPACT FEES ............................................................................................... 28 PUBLIC WORKS DEPARTMENT ............................................................................................. 33 REFUSE DIVISION ................................................................................................................... 34 AIRPORT .................................................................................................................................. 35

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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FINANCE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Transient Occupancy Tax 8% of Room Rent
Returned Payment Fee - First Occurrence $25.00
Returned Payment Fee - Each Subsequent Occurrence $35.00 Submission to County Tax Roll - Each Item $10.00
Duplicate Invoice Request $1.50
Copies $0.10 per Page
Billing:

Building Rent- Late Fee 10%
All other Billing- Late Fee $10.00
Payroll Garnishments $1.50 per Pay Period per Garnishment New Water Service/Installation of Meter for New Water Service (each) $125.00 Admin and Inspection Fee plus applicable Development Impact Fees Residential Deposit $278.00 (Three times the determined average residential bill) Water Hydrant Deposit $1,000.00
Non-residential, Non-hydrant Deposit Calculated Based on Account (Two times the average bill amount) Fine/penalty for delinquent utility service charges $35.00 Reconnection fee for Discontinued Water Service- Business Hours $50.00 Reconnection fee for Discontinued Water Service- Non-Business Hours $150.00 Fee for Missed Reconnection Appointment $50.00
Fee for Appeal of Utility Service Bill $205.00 Plus Deposit of Entire Bill Amount Monthly Fee for Payment Plan Processing, Review, and Administration $13.00 per Month (Per month as long as payment agreement remains in Unauthorized Reconnection of Water Service, Tampering, or Illegal Use of Water$200.00 per Occurrence Plus the Cost of Water Used Damaged Locks $15.00
Fee for Damage to the City Equipment and/or Improvements Actual Cost Incurred by the City to Repair and Replace Fee for Fire Flow Tests $470.00
Fee for Backflow Administration and Inspection $125.00
Backflow Test and Repair if the Customer Fails to have its Device Tested and/or Repair in the Timeframe provided by the City Cost of Testing and Repairs plus $125.00 Admin and Inspection Fee Meter Charges:
5/8", 3/4", & 1" $19.85
1-1/2" & 2" $36.34
3" & 4" $108.90
6" $333.16
8" $531.04
Consumption Charges:

All Customers $2.24
Drought Consumption Charges:
10% Water Cutback $2.42
20% Water Cutback $2.65
35% Water Cutback $3.13
50% Water Cutback $3.89
Residential (Per Dwelling Unit):

Single Family $27.63
Multi-Family/Duplex $20.73
Non-Residential - Metered Water($/CCF):

Group A: Domestic $3.45
Group B: Low Strength $3.15
Group C: Medium Strength $4.42
Group D: High Strength $5.98
Schools (per Student ADA) $0.83
Septage (per 1,000 Gallons) $39.23
Industrial:

Flow (per mg) $2,796.83
BOD (per lb) $0.623
SS (per lb) $0.625
Storm Drainage System Flow Charge ($/CCF) $0.20

WASTEWATER RATES

STORMWATER RATES

PAYROLL - WAGE ATTACHMENTS

UTILITIES

GENERAL

WATER RATES

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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FINANCE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT

BUSINESS LICENSE
Business License Processing $40.00
Business License Processing - Lapsed 6 months or more $15.00 (Current and past due amount to be paid in full) Administrative Fee- Applies to Renewals $10.00
Duplicate Business License $1.50
Late Filing Charge for License Renewal $100.00 (Reduced to $50.00 if paid within 5 business days) Invoice Late Fee (Net 30 Days) $10.00
Hand-Delivered Delinquency Notice (30+ days) $50.00
Failure to Display Current Business License $50.00 for each Occurrence Business License Types:

Advertising By Sound $5.00 per Day
Ambulatory Vehicles $20.00 per Vehicle per Year
Amusement Devices $5.00 per Day per Device
Animal Shows $15.00 per Day
Auctioneers $60.00 per Year
Auctioneers - Itinerant Vendor Temp Located in City $50.00 per Day Bankrupt Sales $100.00 per Month
Billboard & Sign Companies $60.00 per Year
Bingo (Must apply Yearly) $50.00 per Year
Bowling Lanes $10.00 per Lane per Year
Building and Loan Associations $100.00 per Year
Cable Television Fee based on franchise agreement
Card Rooms and Tables $525.00 Operator/$55.00 per Employee/$30.00 Transfer Fee Circuses and Carnivals $25.00 per Day
Contractors:

General Contractors $60.00 per Year
Plumbing, Electrical, Roofing, Painting, Heating & Refrigeration, Plastering, Specialty Contractor $40.00 per Year
Convalescent Vehicles $50.00 per Vehicle per Year
Creameries $200.00 per Year
Delivery and Freight Companies $30.00 per Truck per Year Finance Companies $100.00 per Year
Fire and Wreck Sales $100.00 per Month
Flea Market Vendor - 8967 Lacey Blvd $20.00 per Year
Fortunetelling $200.00 per Year
Going out of Business and Related Sales (Permit Valid for 60 Days) $25.00 Min plus $25.00 if inventory exceeds $5,000.00 Gross Receipts Based on calculation
Hay, Grain and Feed Brokers $60.00 per Year
House Moving $100.00 per Year
Laundry Trucks $30.00 per Truck per Year
Lectures $5.00 per Day
Newspaper Publishing $100.00 per Year
Newspaper Distributing $20.00 per each Type per Year
Non-profit Business (Required to register) No Charge
Packinghouses $150.00 per Year
Parades $25.00 per Day
Parade Vendors $50.00 per Cart per Day
Pawnbrokers $100.00 per Year
Poolrooms or Billiards $8.00 per Table per Year
Peddlers/Mobile Vendors:

On Foot: Goods, Wares or Merchandise $25.00 per Month
Vehicle: Fruits and Vegetables $60.00 per Year
Vehicle: Baked Goods and Dairy Products $30.00 per Year Vehicle: Wholesale $360.00 per Year
Professions: (Examples) Accountant, Appraiser, Architect, Attorney, Chemist, Chiropodist, Chiropractor, Dentist, Medical Lab, Engineer, Geologist, Optician, Optometrist, Osteopath, Physician, Surgeon, Tax Consultant or Radiologist $60.00 per Professional per Year plus $8.00 per year per assistant that exceeds the number of professionals
Shooting Galleries and Ranges $50.00 per Month
Any business located in the City must have a Certificate of Occupancy or Home Permit. Annual notices will be sent to the registered account holder by January 1 and are due by January 31. For businesses located in the Improvement District, additional license fees are levied. Businesses commencing at any time during the second half of an annual licensing period (July 1- December 31) shall pay 50% of the minimum annual Business License Tax.

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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FINANCE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Business License Types Continued:

Skating Rinks $48.00 per Year
Soliciting (Limited to 1 month) $30.00 per Month
Taxicabs, Buses & Pedicabs $20.00 per Vehicle per Year
Title Companies $100.00 per Year
Transient Photographers $200.00 per Year
Theatrical and Entertainment Shows (Transient) $12.50 for 1st day, $5.00 each Day After Veteran Owned Home Business
Non-service based only. Required to register and provide copy of DD214. Subject to approval
No Charge
Wholesale Business 50% deduction of Regular License Fee City Special Events:

Easter Egg Hunt Vendor (Mar) $25.00 per Event
Food Truck Takeover Vendor (Mar- May ) $40.00 per Event Halloween Bash Vendor (Oct) $25.00 per Event
Thursday Night Market Vendors (May-Oct) $40.00 per Event Winter Wonderland Vendor (Nov-Jan) $40.00 per Event

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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HUMAN RESOURCES DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
First-time Adult Passport Book $35.00
First-time Adult Passport Card $35.00
First-time Adult Passport Book & Card $35.00
Minor (Under 16) Passport Book $35.00
Minor (Under 16) Passport Card $35.00
Minor (Under 16) Passport Book & Card $35.00
Passport Services
Note: Please make all Acceptance Fees Payable to the City of Hanford * These are only the acceptance fee established by the U.S. Department of State - Bureau of Consular Affairs and does not include any application fees associated to processing passport application.

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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PARKS AND COMMUNITY SERVICES

INDOOR FACILITY

LONGFIELD CENTER GYM MEMBERSHIP

Fri-Sat
Sun-Thurs
Full
Half
$1,000.00
$30.00 per Hour

RESIDENT
$150.00
$500.00 $1,000.00
$275.00 $800.00
CIVIC AUDITORIUM:

FACILITY
Main Hall
$100.00
VETERANS/SENIOR CENTER:

FACILITY HOST FEES:

LONGFIELD CENTER:
$72.00 per Hour
$250.00
$125.00
Kitchen
Alcohol Deposit
West Wing
Rental Fee
Restrooms
$100.00 $150.00
$50.00
500 or Larger $115.00 per Hour

NON-RESIDENT

DEPOSIT FOR FACILITIES
$150.00

INSURANCE AND SECURITY REQUIRED FOR RENTALS WITH ALCOHOL $75.00 per Day
$50.00
300-399 Party Size
400-499 Party Size
$40.00 per Hour
$57.00 per Hour
Basketball Court(s)

ALCHOHOL PERMIT
PROCESSING FEE $20.00 for all transactions
$50.00 per Hour
200-299 Party Size
$93.00 per Hour
$1,250.00 per Day $1,375.00 per Day
Main Hall
Kitchen
Meeting Room
1-199 Party Size
CIVIC GROUNDS:
$70.00
$75.00
$200.00
AGE: 19-59 AGE: 19-59 AGE: 60+ AGE: 60+

MEMBERSHIP

TYPE ANNUAL PER MONTH ANNUAL PER MONTH
Annual $100.00 $8.33 $75.00 $6.25
Quarterly $30.00 $10.00 $25.00 $8.33
Monthly $12.00 $12.00 $10.00 $10.00
Day Pass $5.00 $3.00
* Rate is per person. No Start-Up Fee. Financial Aid available.

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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OUTDOOR FACILITY

FACILITY RESIDENT NON-RESIDENT
Picnic Arbors $45.00 $60.00
Alcohol Permit
Rental Fee $50.00 per Hour $75.00 per Hour
Lifeguard Fee
Senior/Military
Punch Pass
Adults & Children
Swim Classes: Adults & Children
Dive In Movies: Adults & Children
Water Aerobics :Adults & Seniors $16.00 $20.00
Lap Swim: Adults & Seniors $16.00 $20.00
Picnic Shelter $30.00 per Day $35.00 per Day
Youth
Adult
Staff Fees
Field Preparation
Field Lights
Trash Removal: Adult
Electricity Use
Tournament Deposit
Electricity Use
MISCELLANEOUS:

Soccer Complex and Youth Athletic Complex Field Permit Fee Deposit for Facilities (excluding picnic arbors)
Processing Fee (Facility Rentals: Complexes, Plunge, Civic Grounds/Auditorium)
$30.00
$25.00 per Hour per Lifeguard
CITY PARKS:

CITY PLUNGE:
*Freedom and Lacey Park are excluded due to proximity of schools $250.00
$20.00 for All Transactions
Insurance and Security Required for Rentals with Alcohol $250.00
$75.00 per Day
CIVIC GROUNDS:

Admission Fee:
$2.00 per Day
$10.00 per Pass for Five Visits
$3.00 per Day
$65.00-$80.00 (Depending on Skill Level)
$5.00 per person
SOFTBALL COMPLEX:

Field Fee:
$80.00
$100.00
$18.00 per Hour per each Employee
$25.00 per Field per Hour
$175.00
$2.50 per Hour per Field
$30.00 per Field per Day
$75.00

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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CAROUSEL AND FIRE TRUCKS

WINTER WONDERLAND

DESCRIPTION OF SERVICE
CAROUSEL RIDE RENTAL:
1 Hour

1.5 Hours
2 Hours

2.5 Hours
1 Hour

1.5 Hours
2 Hours

2.5 Hours
1 Hour
2 Hours
Single Carousel Ride
Single Fire Truck Ride
FIRE TRUCK RENTAL:
$3.00
CAROUSEL RIDE & FIRE TRUCK RENTAL COMBO:
$4.00

FEE AMOUNT
$170.00
$220.00
$270.00
$320.00
$175.00
$225.00
$275.00
$325.00
$300.00
$450.00

DESCRIPTION OF SERVICE
Child
Adults
Military
Senior 55+
Family Pack 3
Family Pack 4
Family Pack 5
Season Pass:

Children
Adults (18+)
Hockey Lessons
Skate Lessons
Tour of Lights
Broomball
Enchanted Breakfast
Superhero Breakfast
Event Vendor Fee
Skate Aides
North Pole Lounge
Santa Experience Photos
Santa Experience (Up to 6 people)
Socks
Locker Rental
Private Rink Rentals $350.00 per Hour
$375.00 per Rental
TBD
$25.00 per Reservation
$5.00 per Pair
$4.00 per Locker
$40.00
$40.00
MISCELLANEOUS:
15%-20% Revenue Spilt per Vendor
$6.00 per Aide
ACTIVITIES:
$20.00 per Lesson
$20.00 per Lesson
$165.00 per Rental
$5.00
$16.00 per Person

FEE AMOUNT
ADULTS AND CHILDREN ICE SKATING:
$17.50 per Person
$16.00 per Person
$16.00 per Person
$45.00
$60.00
$75.00
$100.00 per Person
$120.00 per Person

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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PROGRAMS AND EVENTS

DESCRIPTION OF SERVICE RESIDENT NON-RESIDENT
Seasonal Day Camps
Zumba, Aerobics, Yoga $16.00 per Class $20.00 per Class Haunted House
Easter Egg Hunt
Food Vendor
Activity Vendor
Retail Booth Vendor
5%-20% per Day
5%-20% per Day
$20.00-$40.00 per Space
$100.00 per Child
$5.00 per Person
$5.00 per Person

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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FIRE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Annual Fire and Life Inspection without fire Sprinklers (A, B, M, L, S) *Assemblies great then 49 people shall be inspected quarterly per Occurrence $145.00 Fire and Life Safety Inspection With Fire Sprinklers per Issuance $217.00 Additional fee when greater then 30 minutes for fire sprinkler buildings >30 mins $145.00 Billing Fees: Invoice Late Fee (Net 30 Days) per Invoice $10.00 Annual Operational Permit per Issuance $105.00
Re-Inspection 2nd per Occurrence $160.00
Re-Inspection 3rd per Occurrence $182.00
Knox Box Key Install per Issuance $67.00
Special Inspection <5000 sqft per Occurrence $145.00
Special Inspection >5,000 sqft (C, F, H, I) per Occurrence $182.00 Additional Service Fee per Hour $145.00
Weed Abatement Admin Fee on Open Parcels $320.00
Weed Abatement Admin Fee on Residential Properties per Issuance $320.00 Emergency Abatement Fee for Imminent Fire Hazard
(Three attempts made in 21 Business Days ) per Issuance $555.00 Jails Less Than 5000 sqft per Occurrence $145.00
Jails Greater Than 5000 sqft per Occurrence $290.00
Tent/Membrane Inspection per Occurrence $145.00
Hotel/Motel 1-50 Units (R-1) per Occurrence $145.00
Hotel/Motel +50 Units (R-1) per Occurrence $290.00
Multi-Family Dwellings Inspection:
1-20 Units (R-2) per Occurrence $145.00
21-50 Units (R-2) per Occurrence $175.00
51-100 Units (R-2) per Occurrence $215.00
+100 Units (R-2) per Occurrence $270.00
Schools per Occurrence $145.00
Hood Suppression Inspection
*Commercial hood system shall be inspected semi annual per Occurrence $182.00 Hood Suppression Plan Check per Issuance $145.00
Refrigerant an Monitoring System per Occurrence $182.00 Fireworks Booth Admin Inspection per Issuance $190.00
Tank Inspection per Occurrence $142.00
Tank Plan Review per Issuance $182.00
Spray booth Inspection per Occurrence $145.00
Spray Booth Plan Review per Issuance $182.00
Consultation Fee per Occurrence $142.00
Licensed Family Day Care Initial per Occurrence $145.00 Licensed Family Day Care Re-Inspection per Occurrence $175.00 Residential Care Home 24 Hour Care R 3.1 (et al.) per Issuance $175.00 Residential Care Home 24 Hour Care Re-Inspection- R 3.1 (et al.) per Issuance $200.00 Mobile Food Vendor Annual Inspection per Issuance $145.00

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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FIRE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Fire Alarm Plan Review:
1-15 Devices per Issuance $182.00
16-50 Devices per Issuance $264.00
51-100 Devices per Issuance $384.00
101-500 Devices per Issuance $552.00
+500 Devices per Issuance $1,104.00
Fire Alarm Inspection & Testing per Occurrence $184.00
Re-Inspection on Testing Devices per Occurrence $224.00 Fire Sprinkler Plan Review:
1-100 Heads per Issuance $264.00
101-300 Heads per Issuance $384.00
301-500 Heads per Issuance $552.00
+500 Heads per Issuance $1,104.00
Underground Fire Line Inspection per Occurrence $184.00 Underground Fire Line Plan Review per Issuance $224.00
Residential Field Inspection per Occurrence $184.00
Residential Plan Review Less Than 5000 sqft per Issuance $184.00 Residential Plan Review Greater Than 5000 sqft per Issuance $184.00 + $0.75 per sqft Fire Reports per Issuance $25.00
Fire Investigation Report per Issuance $224.00
Miscellaneous Fire Prevention Permit per Permit $105.00 False Alarm/ 3rd and Subsequent Events in Calendar Year per Occurrence $390.00 Standby for public utility response per Hour $390.00
DUI Response per Hour $390.00
Illegal Burning per Hour $390.00
Arson Investigator Response per Investigators
(Minimum of 2 Investigators) per Hour $70.00
Neglectful Fire Response per Hour $390.00
Dangerous Building or Structures per Issuance $555.00
Hazardous Materials Operational:

Permit H-1 per Issuance $656.00
Permit H-2 per Issuance $574.00
Permit H-3 per Issuance $532.00
Permit H-4 per Issuance $470.00
Permit H-5 per Issuance $409.00
Special Hazard Permit/Confined Space, Trench, Vault, High Angle <72' per Issuance $515.00 Special Hazard Incident /Confined Space, Trench, Vault, High Angle <72' per Hour $602.00 + Rescue Team Hazardous Materials Spill Fire Response per Hour $602.00 + Hazmat Team

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FIRE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Hydrant Maintenance and Repair per Hydrant $70.00
Private Hydrant Maintain and Repair per Hydrant $100.00 Hydrant Flow Test per Occurrence $340.00
Special Event with Apparatus per Occurrence $264.00
Battalion Chief Special Event Coordination per Hour $186.00 Fire Prevention Event Coordination per Occurrence $145.00 Fire and Life Safety Citation:

First Offense $100.00
Second Offense $200.00
Third Offense $500.00
Red Tag on Building per Day $200.00
Firework Ordinance Citation $1,000.00

VEHICLE RATE ESTABLISHED BY CURRENT FEMA SCHEDULE - CURRENT FEMA SCHEDULE OF EQUIPMENT RATES CAN BE LOCATED AT: https://www.fema.gov/schedule-equipment-rates

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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POLICE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT

ALARM ORDINANCE
Business Alarm Permit Registration $30.00
Residential Alarm Permit Registration $20.00
Business Alarm Permit Renewal $15.00 per Year
Residential Alarm Permit Renewal $15.00 per Year
First 3 False Alarm Calls per Calendar Year* No Charge
Customer account must be current, otherwise fees for 4th-6th + false alarms apply
4th Occurring False Alarm per Calendar Year $50.00
5th Occurring False Alarm per Calendar Year $75.00
6th + Occurring False Alarm per Calendar Year $100.00
Replace Permit or Validation Sticker $100.00
VEHICLE IMPOUND (Each Vehicle)
Impound Vehicle Fee $120.00
Stored Vehicle under authority code 22651(p)VC $90.00
Repossession Fee $25.00

ANIMAL CONTROL
Animal Pick Up Euthanasia $150.00 per Pick Up
Deceased Animal Pick Up $50.00 per Pick Up plus Shelter Disposal Fee After Hours Animal Pickup $150.00 per Pick Up
Replacement Dog/Cat Tag $10.00 per Tag
Microchipping Charge $20.00 per Microchip
Home Quarantine Residence Check $50.00 per Check
Shelter Quarantine Delivery
$50.00 per Delivery plus Additional Fees Charged by
Shelter
Animal License Permit- 1 Year $20.00
Animal License Permit- 2 Year $30.00
Animal License Permit- 3 Year $40.00
Multi-Animal Permit- 1 Year $50.00
Multi-Animal Permit- 2 Year $75.00
Multi-Animal Permit- 3 Year $100.00
Breeder Permit $500.00

SMOKING ORDINANCE
1st Violation by Person $50.00 per Violation
2nd Violation by Person $100.00 per Violation
3rd Violation by Person $150.00 per Violation
1st Violation by Owner $100.00 per Violation
2nd Violation by Owner $200.00 per Violation
3rd Violation by Owner $500.00 per Violation

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POLICE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
PARKING ORDINANCE (Per Violation)
Application of provisions (10.16.010) $35.00 per Violation Parking in parkways (HMC 10.16.020) $35.00 per Violation Parking vehicles more than 72 hours (HMC 10.16.030) $35.00 per Violation Commercial vehicles-parking in residential (10.16.040) $35.00 per Violation Parking vehicles for sale or repair (HMC 10.16.050) $35.00 per Violation Parking not according to designated markings (HMC 10.16.060) $35.00 per Violation Parking in violation of posted sign (HMC 10.16.070) $35.00 per Violation Parking in violation of posted sign (HMC 10.16.080) $35.00 per Violation Parking between 2 a.m. and 5 a.m. (HMC 10.16.090) $35.00 per Violation Parking on private property & City lots (HMC 10.16.100) $35.00 per Violation Parking in excess of time limits in City lots (HMC 10.16.110) $35.00 per Violation Parking in excess of time limits – green curbs (HMC 10.16.120) $35.00 per Violation Parking in posted no-parking area (HMC 10.16.130) $35.00 per Violation Sales while parked near school grounds (HMC 10.16.140) $35.00 per Violation Parking violations (HMC 10.16.150) $35.00 per Violation Authority to Establish Loading Zones (HMC 10.20.010) $35.00 per Violation Parking in violation of curb markings (HMC 10.20.020) $35.00 per Violation Improper use of passenger loading zone (HMC 10.20.030) $35.00 per Violation Improper use of loading zone (HMC 10.20.040) $35.00 per Violation Improper use of alley (HMC 10.20.050) $35.00 per Violation Improper use of bus zone (HMC 10.20.060) $35.00 per Violation Wrong Way Parking (HMC 10.36.010) $35.00 per Violation
Improper use of sidewalk or parkway (HMC 10.44.010) $35.00 per Violation Operating skates on street (HMC 10.64.030.A) $35.00 per Violation Dangerous operation of skates (HMC 10.64.030.C) $35.00 per Violation Operating skates near building entrance (HMC 10.64.030.D) $35.00 per Violation Skate ramps on public rights-of-way (HMC 10.64.030.E) $35.00 per Violation Towing skaters (HMC 10.64.030.F) $100.00 per Violation
Handicap Parking $300.00 per Violation
Night skating without reflectors (HMC 10.64.030.G) $35.00 per Violation

DOCUMENT COPIES
Traffic Accident Report $10.00 per Report
Citation $10.00 per Citation
Other Agency Citation Sign Off (per Occurrence) $15.00
Records Background Check (per Occurrence) $30.00
Reports - Single Sided/Copies (Evidence Code 1563) $0.10 per Page Reports - Double Sided/Copies (Evidence Code 1563) $0.20 per Page Civil Subpoena (Non Sworn) G.C. 68096.1 (b) Amended 1/1/2015 $275.00 per Subpoena/Day Civil Subpoena (Officers, Firefighters, State or Court Employee) G.C. 68097.2 (b) $275.00 per Subpoena/Day
Ticket Sign Off- Hanford PD No Charge
Ticket Sign Off- Other Agency $15.00 per Sign Off
Subpoena duces tecum $15.00 per Subpoena/Day
Non-Sufficient Funds Check $40.00 per Incident

FINGER PRINTING
Finger Printing- Live Scan (Digital) Cost Recovery plus $10.00 Rolling Fee

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POLICE DEPARTMENT

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT

SPECIAL PERMITS
Concealed Weapons Permit (Inc DOJ Fees) $180.00
Lost, Stolen, Damaged ID Card provided by Hanford PD $20.00 per Card Lost ID Card provided by State $50.00 per Card
Concealed Weapons Permit Renewal (Inc DOJ Fees) $110.00 Enhanced CCW Card $25.00 per CardAdd Weapon to CCW (Inc DOJ Fees/not during renewal or application) $25.00
Taxi Permit $75.00
Taxi Permit Renewal $25.00
Massage Permit $75.00
OTHER
U-Visa Application $25.00

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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CANNABIS DIVISION

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Business License Will vary based on Gross Receipts
Preliminary Eligibility (Retail & Non-Retail) $4,254.00 Initial Ranking (Retail Only) $1,689.00
Second Ranking (Retail Only) $2,241.00
Final Recommendation to Council (Retail Only) $1,102.00 Background Fee (Each Person) (Retail & Non-Retail) $300.00 Environmental Review (Retail & Non-Retail) Actual Cost plus 10% Live Scan (Each Person) (Retail & Non-Retail) $135.00
Zoning Verification Letter (Retail & Non-Retail) $150.00 Campus $32,000.00
Cultivation $32,000.00
Manufacturing $32,000.00
Distribution $32,000.00
Lab Testing $15,000.00
Dispensary $32,000.00
Microbusiness $32,000.00

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Cannabis Employee Application Fee (HMC 5.56.070(C)(9)) $435.00 Cannabis Employee Renewal Application (HMC 5.56.070E) $100.00 Work Permit Appeal (HMC5.56.150) $100.00
Lost, Stolen, Damaged Replacement ID Badge $25.00 per Badge Cannabis Award Appeal $5,000.00
Fines 1st Offense (HMC 5.56.470(B)) $300.00 per Violation per Day Fines 2nd Offense (HMC 5.56.470(B)) $500.00 per Violation per Day Fines 3rd and Subsequent Offenses (HMC 5.56.470(B)) $1,000.00 per Violation per Day Other Appeals in (HMC 5.56) $1,000.00 per Appeal

TAXES - PAY AT FINANCE DEPARTMENT

BUSINESS LICENSE- PAY AT FINANCE DEPARTMENT

OTHER FEES - PAY AT POLICE DEPARTMENT

APPLICATION FEE- PAY AT COMMUNITY DEVELOPMENT DEPARTMENT

ANNUAL PERMIT FEE- PAY AT FINANCE DEPARTMENT
Six dollars ($6.00) annually per square foot of canopy space in a facility that uses exclusively artificial lighting Two dollars ($2.00) annually per square foot of canopy space for any nursery CULTIVATION:

A penalty of equal to ten percent (10%) of the amount of tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent per month. If the tax remains unpaid for an period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent per month on the unpaid tax and on the unpaid penalties.

RETAIL, DELIVERY BUSINESS OR MICROBUSINESS (RETAIL SALES ACTIVITY):

DISTRIBUTION:

MANUFACTURING, PROCESSING OR MICROBUSINESS (NON-RETAIL ACTIVITY):

PENALTIES:

Six percent (6%) of gross receipts for both non-storefront and storefront.

One percent (1%) of gross receipts.

Two percent (2%) of gross receipts.

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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COMMUNITY DEVELOPMENT DEPARTMENT

PLANNING DIVISION

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Administrative Use Permit $550.00
Williamson Act Permits:

Contract Cancellation $6,700.00 Deposit + Actual Cost + 10% Disestablishment $2,225.00
New Contract $550.00
Notice of Full Non-renewal $150.00
Notice of Partial Non-renewal $550.00
Easement Exchange Actual Cost + 10%
Appeal $1,100.00
Conditional Use Permit (CUP):

Amendment to an Approved CUP $1,675.00
Minor (existing structures) $1,675.00
Regular $3,900.00
Master CUP/Planned Unit Development $7,450.00 Deposit + Actual Cost + 10% Development Agreement $4,475.00 Deposit + Actual Cost + 10% Development Agreement Amendment $1,675.00 Deposit + Actual Cost + 10% Finding of Consistency $550.00
General Plan Amendment $10,625.00 Deposit + Actual Cost + 10% Historic Review No Charge
Historic Designation/Detachment of Site $1,900.00
Home Occupation $125.00
Mural Application $150.00
Ordinance Interpretation $275.00
Sidewalk Dining Permit $75.00
Sign Permit:

Non-illuminated $150.00
Illuminated $275.00
Banner $35.00
Site Plan Review:

Initial Minor (Existing Buildings no Expansion, Addition of one Residential Unit, Patio Covers, Carports, Solar Panels and Change of Occupancy within integrated shopping centers, the Historic District, and the mall) $1,100.00 Initial Major or Subdivision/Parcel Map $3,350.00
Resubmittal (First Resubmittal no Charge) $825.00
Specific Plan $9,875.00 Deposit + Actual Cost + 10%
Specific Plan Amendment $4,925.00 Deposit + Actual Cost + 10% Time Extensions $550.00
Temporary Use Permit $275.00
Right-of-Way Abandonment $5,250.00
Variance $3,900.00
Variance - Minor Deviation $1,100.00
Variance - Signs $3,350.00
Variance - Single Family Parcel $2,775.00
Zone Change:

Pre-Zone $4,350.00
Rezone and Text Amendment $8,725.00
Zoning Verification Letter $150.00

APPLICATION/PERMIT

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PLANNING DIVISION

FEE NAME/DESCRIPTION OF SERVICE FEE AMOUNT
Tentative Parcel Map $5,075.00
Final Parcel Map $950.00
Tentative Subdivision Map $7,500.00
Certificate of Compliance $1,125.00
Lot Line Adjustment $1,675.00
Minor Amendment to Previously Approved Map $1,675.00
National Environmental Policy Act (Categorical Exclusion, EA, EIS) Actual Cost + 10% California Environmental Quality Act*:

Notice of Exemption $125.00
Draft & Final Environmental Impact Report/Study Processing (Consultant prepared- City reviewed) $5,000.00 + Actual Cost + 10%
Initial Study/Negative Declaration (City Prepared) $5,000.00 Deposit + Actual Cost + 10% Draft Initial Study/Negative Declaration (Consultant Prepared- City Reviewed) $2,500.00 Deposit + Actual Cost +10% General Plan Text $60.00
Zoning Text $60.00
Copies (each):

Black and White 8 1/2 x 11 $0.25
Color (Letter and Legal Size) $1.00
Black and White 11 x 17 $0.35
Color 11 x 17 $2.00
Large Format Black and White Cost
Large Format Color Cost
Radius Map and Up to 50 Labels $100.00
CD of documents $10.00
Requests for Environmental Notices/ Public Hearing Notices Mailed (Must be Renewed Annually) $125.00
Special Service Fees/Inspections Actual Cost + 10%
Surveyor Plan Review Actual Cost + 10%
City Annexation/Reorganization $12,300.00 Deposit + Actual Cost + 10% County Fee (LAFCo) Contact Kings County
State Board of Equalization Contact State Board of Equalization Parking In Lieu Fee $4,475.00 per space
Shared Parking Agreement $1,100.00

MISCELLANEOUS

ANNEXATION/REORGANIZATION

PARKING
*Additional fees as required, payable to Kings County (See Kings County Fees below)

SUBDIVISION OF LANDS

ENVIRONMENTAL COMPLIANCE

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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PLANNING DIVISION

BUILDING DIVISION

Filing Fee (all environmental documents) In effect at the time Notice of Determination ND/MND (Fish and Wildlife) In effect at the time Notice of Determination EIR (Fish and Wildlife) In effect at the time Impact Fees (Verify current Fees) In effect at the time LAFCo Fee
In effect at the time + City actual cost + 10%
Size of Annexation In effect at the time
Less than 1 acre In effect at the time
1-5 acres In effect at the time
6-10 acres In effect at the time
11-20 acres In effect at the time
21-50 acres In effect at the time
51-100 acres In effect at the time
101 to 500 acres In effect at the time
501-1,000 In effect at the time
1,001-2,000 acres In effect at the time
2,001 acres and above In effect at the time
Please contact the appropriate school district for school fees. In effect at the time

KINGS COUNTY

STATE BOARD OF EQUALIZATION

SCHOOL DISTRICT FEES
The following applicable fees are not adopted by the City of Hanford. You must contact the agency for up to date fees.

BASE COST @

THRESHOLD
SIZE

COST FOR
EACH

ADDITIONAL
SQ FT
BASE COST @

THRESHOLD
SIZE

COST FOR
EACH

ADDITIONAL
SQ FT
BASE COST @

THRESHOLD
SIZE

COST FOR
EACH

ADDITIONAL
SQ FT
500 $971.00 $0.4285 $809.00 $0.3571 $647.00 $0.2857
2,500 $1,828.00 $0.2179 $1,524.00 $0.1816 $1,219.00 $0.1453 5,000 $2,373.00 $0.0870 $1,978.00 $0.0725 $1,582.00 $0.0580 10,000 $2,808.00 $0.0578 $2,340.00 $0.0482 $1,872.00 $0.0385 25,000 $3,675.00 $0.0800 $3,063.00 $0.0673 $2,450.00 $0.0538 50,000 $5,694.00 $0.1139 $4,745.00 $0.0949 $3,796.00 $0.0759 300 $646.00 $0.4944 $538.00 $0.4120 $431.00 $0.3296
1,500 $1,239.00 $0.2286 $1,033.00 $0.1905 $826.00 $0.1524 3,000 $1,582.00 $0.0923 $1,319.00 $0.0769 $1,055.00 $0.0615 6,000 $1,859.00 $0.0630 $1,549.00 $0.0525 $1,239.00 $0.0420 15,000 $2,426.00 $0.0842 $2,022.00 $0.0702 $1,618.00 $0.0562 30,000 $3,690.00 $0.1230 $3,075.00 $0.1025 $2,460.00 $0.0820 100 $667.00 $1.7510 $556.00 $1.4592 $445.00 $1.1673
500 $1,368.00 $0.5304 $1,140.00 $0.4670 $912.00 $0.3736 1,000 $1,648.00 $0.2390 $1,373.00 $0.1991 $1,099.00 $0.1593 2,000 $1,887.00 $0.1840 $1,573.00 $0.1533 $1,258.00 $0.1227 5,000 $2,439.00 $0.2043 $2,033.00 $0.1703 $1,626.00 $0.1362 10,000 $3,461.00 $0.3461 $2,884.00 $0.2884 $2,307.00 $0.2307 "B" OCC-TENANT

IMPROVEMENTS
"E" OCC-TENANT

IMPROVEMENTS
"A" OCC-TENANT

IMPROVEMENTS

OCCUPANCY TYPE PROJECT SIZE

THRESHOLD

CONSTRUCTION TYPES

I-FR, II-FR

PLAN CHECK & INSPECTION FEES

CONSTRUCTION TYPES
III 1-HR

CONSTRUCTION TYPES

IV, V-N

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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BUILDING DIVISION

BASE COST @

THRESHOLD
SIZE

COST FOR
EACH

ADDITIONAL
SQ FT
BASE COST @

THRESHOLD
SIZE

COST FOR
EACH

ADDITIONAL
SQ FT
BASE COST @

THRESHOLD
SIZE

COST FOR
EACH

ADDITIONAL
SQ FT
1,000 $2,560.00 $0.5769 $2,133.00 $0.4808 $1,707.00 $0.3846 5,000 $4,868.00 $0.2790 $4,056.00 $0.2325 $245.00 $0.1860 10,000 $6,263.00 $0.1121 $5,219.00 $0.0934 $4,175.00 $0.0747 20,000 $7,383.00 $0.0754 $6,153.00 $0.0628 $4,922.00 $0.0503 50,000 $9,645.00 $0.1032 $8,038.00 $0.0860 $6,430.00 $0.0688 100,000 $14,805.00 $0.1481 $12,338.00 $0.1234 $9,870.00 $0.0987 100 $667.00 $1.7510 $556.00 $1.4592 $445.00 $1.1673
500 $1,328.00 $0.5604 $1,140.00 $0.4670 $912.00 $0.3736 1,000 $1,648.00 $0.2390 $1,373.00 $0.1991 $1,099.00 $0.1593 2,000 $1,887.00 $0.1840 $1,573.00 $0.1533 $1,258.00 $0.1227 5,000 $2,439.00 $0.2043 $2,033.00 $0.1703 $1,626.00 $0.1362 10,000 $3,461.00 $0.3461 $2,884.00 $0.2884 $2,307.00 $0.2307 1,000 $971.00 $0.2142 $809.00 $0.1785 $648.00 $0.1428
5,000 $1,828.00 $0.1091 $1,524.00 $0.0909 $1,219.00 $0.0727 10,000 $2,374.00 $0.0434 $1,978.00 $0.0362 $1,582.00 $0.0290 20,000 $2,808.00 $0.0288 $2,340.00 $0.0240 $1,872.00 $0.0192 50,000 $3,672.00 $0.0403 $3,060.00 $0.0336 $2,448.00 $0.0269 100,000 $5,688.00 $0.0569 $4,740.00 $0.0474 $3,792.00 $0.0379 200 $739.00 $0.8755 $616.00 $0.7296 $493.00 $0.5837
1,000 $1,439.00 $0.3737 $1,199.00 $0.3114 $960.00 $0.2491 2,000 $1,813.00 $0.1526 $1,511.00 $0.1271 $1,209.00 $0.1017 4,000 $2,118.00 $0.1065 $1,765.00 $0.0888 $1,412.00 $0.0710 10,000 $2,757.00 $0.0138 $2,298.00 $0.1148 $1,838.00 $0.0918 20,000 $4,134.00 $0.2067 $3,445.00 $0.1723 $2,756.00 $0.1378 80 $405.00 $1.0815 $338.00 $0.9012 $270.00 $0.7210
400 $751.00 $0.5933 $626.00 $0.4944 $501.00 $0.3955
800 $989.00 $0.2350 $824.00 $0.1958 $659.00 $0.1566
1,600 $1,177.00 $0.1525 $981.00 $0.1271 $785.00 $0.1017 4,000 $1,543.00 $0.2201 $1,286.00 $0.1824 $1,028.00 $0.1467 8,000 $2,423.00 $0.3029 $2,019.00 $0.2524 $161.00 $0.2019 40 $269.00 $1.5451 $224.00 $1.2876 $179.00 $1.0301
200 $516.00 $0.7142 $430.00 $0.5951 $344.00 $0.4761
400 $659.00 $0.2885 $549.00 $0.2404 $439.00 $0.1923
800 $775.00 $0.1968 $646.00 $0.1640 $516.00 $0.1312
2,000 $1,011.00 $0.2639 $842.00 $0.2199 $674.00 $0.1759 4,000 $1,538.00 $0.3846 $1,282.00 $0.3205 $1,026.00 $0.2564 *Plan Check Fees x Inspections Fees = Plan Check & Inspection Fees as Shown Plan Check or Inspection Fees available upon request.

PROJECT SIZE

THRESHOLD

CONSTRUCTION TYPES

I-FR, II-FR

CONSTRUCTION TYPES
III 1-HR

CONSTRUCTION TYPES

IV, V-N
"S" OCC-TENANT

IMPROVEMENTS
ALL "F" OCC
"H" OCC-TENANT

IMPROVEMENTS
"I" OCC-TENANT

IMPROVEMENTS
"R-1/R-2" OCC-
TENANT

IMPROVEMENTS
"M" OCC-TENANT

IMPROVEMENTS

PLAN CHECK & INSPECTION FEES

OCCUPANCY TYPE

FEE AMOUNT

ELECTRICAL FEES
$50.00 Each
$105.00 per Hour
Outdoor Events
Carnivals, Circuses, or other traveling shows or exhibitions utilizing transportation type rides booths, displays, and attractions
Temporary Power Service

FEE NAME/DESCRIPTION OF SERVICE
Permit Issuance
Stand Alone Permit - Plan Check
$105.00 per Hour
Temporary power service pole or pedestal, including all pole or pedestal-mounted receptacle outlets and appurtenances $105.00 Each

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BUILDING DIVISION

FEE AMOUNT
$43.75 up to 20
$0.87 Each Addition
$35.00 Each
$35.00 Each
$43.75 Each
$52.50 Each

ELECTRICAL FEES, CONTINUED
$105.00 Each
$157.50 Each
$35.00 Each
$157.50 Each
Commercial $315.00 for 1-3
Each Additional $105.00 Each
$35.00 Each
Photovoltaic Systems - Residential & Small Commercial (up to 49KW) Plan Check Inspection Total 1 - 15 Kilowatts $200.00 Each $300.00 Each $500.00 Each (includes P.I. Fee) Each Kilowatt above 15 KW $15.00 per KW $15.00 per KW
Photovoltaic Systems - Commercial
50 Kilowatts $400.00 Each $600.00 Each $1,000.00 Each (includes P.I. Fee) Each Kilowatt between 51 KW and 250 KW $7.00 per KW $7.00 per KW Each Kilowatt above 250 KW $5.00 per KW $5.00 per KW
$50.00 Each
$105.00 per Hour
$70.00 Each
$70.00 Each
$70.00 Each
$70.00 Each
$61.25 Each
$61.25 Each
$70.00 Each

FEE NAME/DESCRIPTION OF SERVICE
Electrical apparatus, conduits, and conductors for which a permit is required, but for which no fee is herein set forth

MECHANICAL FEES
Install/Relocate each forced air or gravity-type furnace or burner (including attached ducts and vents) Unit Fees:

Permit Issuance
Stand Alone Permit- Plan Check
Install/Relocate each floor furnace (including vent)
Install/Relocate each suspended heater, recessed wall heater, or floor-mounted unit heater Unit Fees:

Repair/Alteration/Addition to each heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption, or evaporative cooling system, including installation of controls required by the code
Services 600 volts or less and not over 1,000 amperes in rating Install/Relocate each boiler or compressor, or each absorption system Each air-handling unit, including attached ducts up to 10,000 CFM Receptacles, Switches, and Lighting Outlets
$35.00 Each
Residential
Miscellaneous Apparatus, Conduits, and Conductors
Services over 600 volts or over 1,000 amperes in rating $52.50 Each
Subpanels
Over 50 and not over 100
EV Charging Station
Nonresidential Appliances
Up to and including 1
Over 1 and not over 50
$35.00 Each
Residential Appliances
Unit Fees:

Residential appliances and factory wired nonresidential appliances, including medical and dental devices; food, beverage, and ice cream cabinets; illuminated show cases; drinking fountains; vending machines; laundry machines; or other similar types of equipment
Rating in Horsepower (HP), Kilowatts (KW), or Kilovolt-amperes (KVA), or Kilovolt-amperes-reactive (KVAR) (fees include all switches, breakers, etc.)
Power Apparatus
Motors, generators, transformers, rectifiers, synchronous converters, capacitors, industrial heating, air conditioners and heat pumps, cooking or baking equipment, and other apparatus as follows:

Fixed residential appliances or receptacle outlets for the same, including wall-mounted electric ovens, counter mounted cook tops, electric ranges, self-contained room consoles or through-well air conditioners, space heaters, food waste grinders, dish washers, washing machines, water heaters, clothes dryers, or other motor-operated appliances (each) not exceeding one horsepower rating Over 100
Signs, Outline Lighting, and Marquees
Signs, Outline Lighting, or Marquees supplied from one branch circuit Unit Fees:

Install/Relocate/Replace each appliance vent installed and not included in an appliance permit Services

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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BUILDING DIVISION

FEE AMOUNT
$70.00 Each
$35.00 Each
$52.50 Each
$61.25 Each
$70.00 Each
$52.50 Each
$52.50 Each
$105.00 per Hour
$50.00 Each
$105.00 per Hour
$35.00 Each
$52.50 Each
$17.50 per Drain
$26.25 Each
$105.00 Each
$35.00 Each
$52.50 - 1 to 5 Outlets
$3.50 Each
$52.50 - 1 to 5 Outlets
$8.75 Each
$52.50 Each
$52.50 Each
$52.50 Each
$35.00 Each
$35.00 Each
$35.00 - 1 to 5 Outlets
$1.75 Each
$105.00 per Hour
$315.00 per Hour @ 1 1/2
$157.50 per Hour @ 1 1/2
$105.00 per Re-Inspection
$105.00 per Hour
$105.00 per Hour
Cost x 133% per Hour
$157.50 Each
$105.00 per Hour
$10.00 Each
$500.00 or 2x Fee Each
Lawn sprinkler system on any one meter, including backflow protection devices therefore Repair/Alteration or drainage or vent piping
Industrial waste pretreatment interceptor including its trap and vent, excepting kitchen-type grease interceptors functioning as fixtures traps
Unit Fees:

Installation of each hood which is served by a mechanical exhaust, including the ducts for such hood

MECHANICAL FEES CONTINUED
Unit Fees:

Install/Relocate each incinerator
Each appliance or piece of equipment regulated by this code but not classified in other appliance categories, or for which no other fee is listed in this code
Unit Fees:

PLUMBING FEES
Other mechanical inspections not noted above
Permit Issuance
Deferred Submittals
Duplicate Permit or Job Cards
Work without permit - $500.00 or 2x permit fee- whichever is greater Reinspection Fee
Inspection for which no fee is specifically indicated (minimum charge 1/2 hour) Outside plan check consultants- Actual cost to the city x 133% Compliance Inspection
Other plumbing and gas inspections not noted above
Each additional hour or portion thereof at time and one-half Inspections outside of normal business hours, (minimum charge of two hours at time and one-half) Additional plan review required because of changes, additions, or revisions to approved plans (minimum charge 1 hour)

OTHER INSPECTIONS AND FEES
Backflow devices not included in other fee services
Atmospheric-type vacuum breakers not included in other fee services Plumbing fixture or trap or set of fixtures on one trap (including water, drainage piping, and backflow protection therefore)
Additional outlets
Installation/Alteration/Repair of water piping and/or water treating equipment Additional outlets
Medical gas piping system
Additional outlets
Building or trailer park sewer
Rainwater system - inside building
Cesspool where permitted
Stand Alone Permit- Plan Check
Water heater and/or vent
Gas piping system
Each ventilation system which is not a portion of any heating or air-conditioning system Each ventilation fan connected to a single duct
Each air-handling unit over 10,000 CFM
Each evaporative cooler other than portable type
Private sewage disposal system

FEE NAME/DESCRIPTION OF SERVICE

PERMIT ISSUANCE PLAN CHECK INSPECTION UNIT
$3.15 Each
$50.00 $157.50 $304.50 up to 300 Sq Ft
$0.26 $0.74 Sq Ft
$50.00 $52.50 $157.50 Each
$50.00 $35.00 $35.00 Each Antenna
Address Assignments
Additions, Residential
Additional Sq Ft
Antenna Installations
Antennas - Telecom Facility (towers)

MISCELLANEOUS & CODE COMPLIANCE FEES

FEE AMOUNTFEE NAME/DESCRIPTION OF SERVICE

MASTER FEE SCHEDULE FISCAL YEAR 2024-25

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BUILDING DIVISION

PERMIT ISSUANCE PLAN CHECK INSPECTION UNIT
$50.00 $26.25 $35.00 up to 2
$3.15 $5.25 Each
$50.00 $52.50 $94.50 up to 200 Sq Ft
$105.00 $141.75 over 200 Sq Ft
$50.00 $52.50 $106.00 ≤ 200 Sq Ft
$105.00 $159.00 over 200 Sq Ft
$50.00 $57.50 $105.00 Each
$50.00 $52.50 $210.00 Each Bldg.
$50.00 $52.50 $157.50 up to 200 Sq Ft
$105.00 $236.25 over 200 Sq Ft
$50.00 $52.50 $160.00 Each Structure
$50.00 $52.50 $110.00 Each Structure
$5.00 Each Permit
$50.00 $52.50 $52.50 up to 100 Linear Ft
$105.00 $0.57 Linear Ft
$50.00 $52.50 $105.00 up to 100 Linear Ft
$105.00 $0.66 Linear Ft
$50.00 $52.50 $169.00 Each
$50.00 $52.50 $52.50 Each
$50.00 $26.25 $52.50 Each
$50.00 Sq Ft
$50.00 $52.50 $105.00 up to 100 Linear Ft
$105.00 $0.66 Linear Ft
$50.00 $17.50 $26.25 First One
$2.10 $5.25 Each
$50.00 $105.00 $157.50 Each Bldg.

Mile
$50.00 $35.00 $52.50 up to 30 Linear Ft
$0.42 $0.84 Linear Ft
$50.00 $35.00 $32.50 up to 30 Linear Ft
$50.00 $0.42 $0.84 Linear Ft
$50.00 $52.50 $157.50 up to 300 Sq Ft
$26.25 $35.00 each 300 Sq Ft
$50.00 $84.00 $210.00 up to 300 Sq Ft
$31.50 $84.00 Each 300 Sq Ft
$50.00 $78.75 $84.00 up to 10 piles
$13.65 $6.30 Each
$50.00 $78.75 $84.00 up to 10 piles
$50.00 $13.65 $6.30 Each
$105.00 per Hour
$50.00 $105.00 $210.00 up to 300 Sq Ft
$0.21 $0.53 Sq Ft
$50.00 $35.00 $78.75 Each
$50.00 $35.00 $131.25 Each
$50.00 $52.50 $157.50 Each
$50.00 Each
$50.00 $35.00 $78.75 up to 50 Linear Ft
$0.21 $0.53 Linear Ft

FEE AMOUNT

MISCELLANEOUS & CODE COMPLIANCE FEES
Re-Roof- Residential, Roof over
Tear-off
Additional Enclosed Patio/Porch
Pile Foundation - Cast-in-place Concrete
Additional Piles
Driven (any type)
Additional Piles
Remodel, Residential
Additional Remodel
See Valuation Chart
Enclosed Patio/Porch
Retaining Walls (concrete or masonry)
Additional
Plus mileage cost outside city limits (Current Government Rate)
Partitions - Commercial, Interior
Additional
Partitions - Residential, Interior
Additional
Permit Issuance
Additional Sq Ft on same side (over 200 Sq Ft)
Change of Use/Change of Occupancy

FEE NAME/DESCRIPTION OF SERVICE
Lighting Poles
Additional Poles
Moved Buildings
Carport (200 Sq Ft)
Awning/canopy (supported by the building)
Additional
Masonry, Additional
Fireplace - Masonry
Pre-Fabricated/Metal/Inserts
Residential
Electronics/System Replacement
Fence - Non-Masonry, over 7 feet high
Non-Masonry, Additional
Masonry, all heights
Demolition - Commercial
Commercial
Balcony Addition
Additional
Plan Review Fee in excess of Submittal and two re-checks Commercial Coach
Deck (wood)
Additional (over 200 Sq Ft)
Flag Pole
Covered Patio/Trellis/Arbor (not enclosed)
Additional Patio/Tresses/Arbor
Repair
Foundation Only Valuation based on $5.00 per Sq Ft
Addition