AGENDA
KINGSBURG CITY COUNCIL
REGULAR MEETING
Council Chamber, 1401 Draper Street, Kingsburg, CA 93631 (559) 897-5821 www.cityofkingsburg-ca.gov
THE COUNCIL CHAMBER IS OPEN TO THE PUBLIC AT 100% CAPACITY.
Wednesday, April 20, 2022 at 6pm
Invocation to be given by Father Greg Beaumont, Holy Family Church, followed by the Pledge of Allegiance led by Mayor Laura North
6 P.M. REGULAR SESSION MEETING:
1. Call to Order and Roll Call
2. Approve Agenda: Action by the Council to approve the agenda or to make modifications. Items that can be added to the agenda is constrained by State law.
3. Presentations:
3.1 Swearing In of Fire Department CERT Volunteers:
Cathleen Lawler
Robert Gonzales
Linda Sward
Jacob Wiggs
Karen Wright
John Wright
Adale Van Dam
Michele Lapcevich
Lisa Swartz
John Palms
Rob Gong, Assistant CERT Coordinator
Rolinda Hernandez, CERT Coordinator
Sponsor: Fire Department
3.2 Pinning and Swearing In of Police Department Employees Police Officer – Josefino Arevalo III
City of Kingsburg
1401 Draper Street, Kingsburg, CA 93631-1908
Phone (559)897-5821 Fax (559)897-5568
Mayor Laura North
Mayor Pro Tem Vince Palomar
Council Member Michelle Roman
Council Member Jewel Hurtado
Council Member Brandon Pursell, Jr.
City Manager Alexander J. Henderson
Kingsburg City Council Agenda
April 20, 2022
Police Volunteer – Halle Sembritzki
Police Volunteer- Myra Boland
Sponsor: Police Department
4. Public Comments: This is the time for any citizen to come forward and address the City Council on any issue within its jurisdiction that is not listed on the Agenda. A maximum of five (5) minutes is allowed for each speaker.
5. Consent Calendar: Items considered routine in nature are to be placed on the Consent Calendar.
They will be considered as one item and voted upon in one vote unless individual consideration is requested. Each vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Approval of the Consent Calendar items include recitals reading ordinance(s) by titles(s) only and adoption of recommended action(s) contained in Staff Reports.
5.1 Approval of City Council Minutes: Approve the minutes from the April 6, 2022 Regular City Council Meetings as prepared by Community Development Administrative Assistant Karyl Bartel.
Sponsor: City Clerk’s Office
5.2 Check Register: Ratify/approve payment of bills listed on the check register for the period March 29, 2022 through April 11, 2022 as prepared by Accounts Payable Clerk Marsha Alves.
Sponsor: Finance Department
5.3 Adopt Resolution 2022-022- A Resolution Authorizing The City Of Kingsburg To Participate In The Fresno County Multijurisdictional Housing Element Update And Cost Sharing Agreement and authorize the City Manager to enter into an agreement to participate in the process. - Staff Report by Community Development Director Holly Owen
Sponsor: Community Development Department
5.4 Adopt Resolution No. 2022-023 approving the final map for Tract 6167 accepting on behalf of the public the streets and easements as offered on the map in accordance with the terms of the dedications and Authorize the City Manager to execute the Subdivision Agreement on behalf of the City, subject to review as to form by the City Attorney. – Staff Report by City Engineer Dave Peters Sponsor: City Engineer’s Office
5.5 Approve the Reimbursement Agreement between the City of Kingsburg and Presidio JJR Summerlyn 123, LLC for reconstruction of Avenue 396 beyond the scope of work required by the project conditions of approval and authorize the City Manager to sign the agreement on behalf of the City – Staff Report by City Engineer Dave Peters
Sponsor: City Engineer’s Office
Kingsburg City Council Agenda
April 20, 2022
6. Regular Calendar
6.1 Financial Statements for the Year Ended June 30, 2021 – Consider Statements as prepared by Price Paige & Company. Staff report prepared by Finance Director Alma Colado
Sponsor: Finance Department
Possible Action(s):
a. Presentation by Price Page & Company Managing Partner Fausto Hinojosa and Osvaldo Gutierrez
b. Council Discussion
c. Accept Financial Statements for Year Ended June 30, 2021
6.2 Solid Waste Rate Study and Prop. 218 Update
Sponsor: Public Works
Possible Action(s):
a. Presentation by Lechowicz + Tseng Municipal Consultants b. Council Discussion
c. Action As Deemed Necessary
6.3 Crime Statistics Report for the Month of March 2022 and General Police Department Update- Crime Statistics Report prepared by Kingsburg Police Department Records Supervisor Corina Padilla.
Sponsor: Police Department
Possible Action(s):
a. Presentation by Police Chief Neil Dadian
b. Council Discussion
c. Informational- No Action Necessary
7. Council Reports and Staff Communications
7.1 Community Services Commission
7.2 Public Safety Committee
7.3 Chamber of Commerce
7.4 Economic Development
7.5 Finance Committee
7.6 Planning Commission
7.7 South Kings Groundwater Sustainability Agency Joint Powers Authority (SKGSA)
7.8 Downtown Business Improvement District
7.9 Council of Governments
7.10 Council Member Reports
7.11 City Manager’s Report
8. Future Agenda Items:
None
9. The Kingsburg City Council adjourns out of the Regular Calendar into Closed Session:
9.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
California Government Code Section 54956.9(a)
Kingsburg City Council Agenda
April 20, 2022
Vernon Franklin v. City of Kingsburg, et.al.
Fresno County Superior Court Case No. 18CECG01029
9.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR
California Government Code Section 54956.8
Fresno County Assessor’s Parcel Number: APN: 394-042-04 City Negotiator: Alexander J. Henderson
Under Negotiation: Rental Terms and Conditions
9.3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR
California Government Code Section 54956.8
Property: City of Kingsburg street right-of-way in various locations within the City of Kingsburg.
City Negotiator: Alexander Henderson
Negotiation parties: Fiber-Optic Contractors
Under Negotiation: Terms and conditions of lease of City of Kingsburg street rightof-way for installation of fiber-optic cable.
10. Adjourn out of Close Session into Regular Kingsburg City Council Meeting and report out of Closed Session.
11. Adjourn Regular Kingsburg City Council Meeting.
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall, in the City Clerk’s office, during normal business hours. In addition, such writings and documents may be posted on the City’s website at www.cityofkingsburg-ca.gov.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (559) 897-6520. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35 .102.35.104 ADA Title II].
I hereby certify, under penalty of perjury under the laws of the State of California that the foregoing Agenda was posted at the front entrance of City Hall not less than 72 hours prior to the meeting. Dated this 14th day of April 2022.
____________________________________
Abigail Palsgaard, City Clerk
KINGSBURG CITY COUNCIL
REGULAR MEETING MINUTES
WEDNESDAY, April 6, 2022 – 6:00 P. M.
THE COUNCIL CHAMBER IS OPEN TO THE PUBLIC AT 100% CAPACITY.
Invocation was given by Pastor Nathan, Kingsburg First Baptist Church, followed by the Pledge of Allegiance led by Mayor Laura North
6 P.M. REGULAR SESSION MEETING
Call to Order and Roll Call: Mayor Laura North called the regular meeting of the Kingsburg City Council to order at 6:03 P. M.
Council Members Present: Jewel Hurtado, Vince Palomar, Brandon Pursell, Jr., Michelle Roman, and Mayor Laura North.
Staff Present: City Manager Alexander Henderson, City Attorney Mike Noland and Community Development Administrative Assistant Karyl Bartel.
Council Members Absent: None.
Approve Agenda: A motion was made by Council Member Palomar, seconded by Council Member Pursell, Jr., to approve the Agenda as published. The motion carried by unanimous voice vote.
Public Comments:
Laura Harris, resident is concerned for safety on Kern St by Roosevelt School. She wants improvements around the schools.
Staff responded that Public Works will do scheduled improvements and are working on getting flashing lights for the cross walk at 10th and Draper for Roosevelt School.
Lee Darling, resident, is for a 4 way stop by Roosevelt. They speed around the corner. Maybe a stop sign.
5. Consent Calendar: A motion was made by Council Member Pursell, Jr., seconded by Council Member Hurtado, to approve the items appearing on the Consent Calendar. The motion carried by unanimous voice vote.
5.1 Approval of City Council Minutes: Approve the minutes from the March 16, 2022 Regular City Council Meetings as prepared by City Clerk Abigail Palsgaard.
Sponsor: City Clerk’s Office
5.2 Check Register: Ratify/approve payment of bills listed on the check register for the period March 8, 2022 through March 28, 2022 as prepared by Accounts Payable Clerk Marsha Alves.
Sponsor: Finance Department
5.3 Accept the Senior Center Improvements project completed by Arts Construction Company, Inc. and authorize the City Engineer to file the Notice of Completion - Staff Report by City Engineer Dave Peters
Sponsor: City Engineer’s Office
Kingsburg City Council Minutes
April 6, 2022
5.4 Approve the Closure of Marion Street for Uptown Sprouts Event 5/1/2022 - Staff Report by Community Services Director Adam Castaneda.
Sponsor: Community Services
Regular Calendar
Revenue Collection Overview - Staff Report by City Manager Alexander Henderson.
Sponsor: City Manager & Finance Department
City Manager Alexander Henderson presented the revenue collection overview.
Lee Darling, resident, asked if sales tax from Amazon goes to city? City Manager Henderson said not the whole amount. It’s just the way the state works. 1% goes to Kingsburg. Measure E is a little bit higher. Measure E is a 10-year thing. Voters will have to go back on it.
CalPERS Update 2022 - Staff Report by City Manager Alexander Henderson.
Sponsor: City Manager & Finance Department
City Manager Alexander Henderson presented the 2022 CalPERS update.
Council Member Pursell, Jr. said it is a huge liability. The $1,600,000 the City has paid towards the unfunded liability will save us 1.8 million dollars. Council thanked the City Manager. 2021/2022 Capital Improvement Plan Update - Staff Report by City Manager Alexander Henderson.
Sponsor: City Manager & Finance Department
City Manager Alexander Henderson presented the 2021/2022 Capital Improvement Plan Update.
Mayor North asked if Kern Street improvements are on the CIP? The City Manager said it is not yet.
Council Member Hurtado said it is nice to see so many completed and in progress projects.
Lee Darling, resident, is there striping at the school? City Manager Henderson said that these are capital projects.
Sherman Dix, resident, said this is an ambitious list. He discussed the downtown grants and would like council to continue to support the façade grants. It’s great environment and it’s great to see the progress.
Micro-Grant Application Consideration – KGSL - Staff Report by City Manager Alexander Henderson.
Sponsor: City Manager
City Manager Alexander Henderson presented the microgrant application submitted by Kingsburg Youth Softball League to use the old Mosquito Abatement building as an indoor facility.
Kingsburg City Council Minutes
April 6, 2022
Council Member Roman asked who is covering the lead-based paint and asbestos survey. The City Managers said he is not sure yet. We will exercise a lease agreement in terms of who is responsible for it.
Sherman Dix, KYSL, said the building is an eyesore, and we want to beautify it and make it useful.
The building will have the bathroom for kids. There will be indoor batting area. Maybe rent it out to individuals who wants to use it. This is a good place to meet for us. They received a grant for $55,000. He spoke about the work that needs to be done, and that they are a non-profit. We are looking into putting $15,000. Council Member Roman asked how many teams can use it at one time. Mr. Dix said only 1 at a time, but it will have indoor lights and weather will not be a factor so it can be used for extended amounts of time. Council Member Roman asked if there is a contract written up, will it go back to us? City Manager Henderson said yes.
A motion was made by Council Member Roman seconded by Council Member Pursell, Jr. to approve the Kingsburg Youth Softball League micro-grant for $15,000. The motion carried by unanimous voice vote.
Council Reports and Staff Communications
Community Services Commission- Mayor North said the Commission has been looking at bathroom options and narrowing down choices. Council member Hurtado asked what the timeline is. City Manager Henderson said we are working on the vendors and getting quotes on that. Anything we order will probably be 6 months out due to supply chain issues. It will be part of your budget discussion for next fiscal year. Should be completed by the end of next fiscal year. We did get the signed contract from the state for the dog park.
Public Safety Committee- Council Member Palomar said they have not met.
Chamber of Commerce- Council Member Pursell, Jr. said we meet next week, Car Show in on 4/15 and 4/16.
Economic Development- Council Member Roman said they have not met.
Finance Committee- Council Member Pursell Jr. said they have not meet since the last meeting.
Planning Commission- Mayor North said they will meet next Thursday.
South Kings Groundwater Sustainability Agency Joint Powers Authority (SKGSA) Council Member Hurtado said they have not met. Nothing to report.
Downtown Business Improvement District- Council Member Hurtado met on Monday and about the Car Show. Starting a new website is a lot of work. Jolene Polyack, Economic Development Consultant, brought information regarding a billboard.
Council of Governments
Council Member Roman said they started the meeting off in memory the death of Fowler Mayor David Cardenas. He left a legacy and meant a lot to all of us. The Board nominated her as the chair of COG.
Bittersweet because this is not how she wanted to be nominated. New bus shelter at the senior center will be installed. FCRTA will pay for it so no cost to us. The bus shelter will be at the senior center parking lot.
Kingsburg City Council Minutes
April 6, 2022
Transit Oriented Grant Application Update- City Manager Henderson said we received notification that the first phase of the Downtown Strategic Plan will be fully funded.
Council Member ReportsCouncil Member Hurtado said Happy Autism Awareness Month City Manager’s ReportSurvey was sent to the citizens for how they would like to see the ARPA funds spent. Fiber Optics and Downtown improvements ranked the highest. Downtown pole painting and new banners will be done before the Car Show.
Mr. Henderson discussed the Business Park sign. The previous Business Park Association has been dissolved. The City is working on getting the sign working properly.
Council Member Palomar asked about T-Mobile. City Manager Henderson gave them the timeline.
Future Agenda Items:
None
Adjourn Regular Kingsburg City Council Meeting. At 7:08 P. M. Mayor North adjourned the meeting.
Submitted by:
____________________________________
Karyl Bartel, Community Development Administrative Assistant Accounts Payable
User:
Printed:
marshaa
4/13/2022 3:05 PM
Checks by Date - Summary by Check Date
Check No Vendor No Vendor Name Check Date Check Amount
81181 3005 AFLAC 04/01/2022 863.54
81182 3006 AIRGAS NCN 04/01/2022 1,133.03
81183 4061 MARSHA ALVES 04/01/2022 296.00
81184 3565 AMAZON CAPITAL SERVICES 04/01/2022 826.30
81185 3029 AT&T CALNET 3 04/01/2022 176.52
81186 4660 MATHEW BARNETT 04/01/2022 2,712.00
81187 3039 BERMAN'S FLOWERS & GIFTS 04/01/2022 114.97
81188 3634 RYAN BOYD 04/01/2022 112.48
81189 4429 CANON FINANCIAL SERVICES, INC 04/01/2022 660.84 81190 3068 BARBARA CARPENTER 04/01/2022 1,456.00
81191 3831 ADAM CASTANEDA 04/01/2022 35.00
81192 3551 CENTRAL VALLEY TOXICOLOGY 04/01/2022 142.00
81193 3080 CHADS AUTO GLASS 04/01/2022 222.65
81194 4546 CHICAGO TITLE COMPANY 04/01/2022 15,840.00
81195 3101 CITY OF SANGER 04/01/2022 678.50
81196 3607 CIVICPLUS 04/01/2022 263.00
81197 4448 CORE & MAIN 04/01/2022 6,874.73
81198 3142 DELRAY TIRE & RETREADING 04/01/2022 4,211.70 81199 4229 EBA&M CORPORATION 04/01/2022 2,360.00
81200 3158 ENER POWER 04/01/2022 7,394.00
81201 3693 FERGUSON ENTERPRISES, INC. 04/01/2022 4,603.16 81202 4652 SHARLA FLOOD 04/01/2022 25.00
81203 3183 FRANKMORE, JOSEPH 04/01/2022 300.00
81204 4284 DANIEL GALVEZ 04/01/2022 184.18
81205 4333 GILL REEVES COMPANY 04/01/2022 100.00
81206 4433 SERGIO GONZALES 04/01/2022 82.00
81207 3994 GUARDIAN 04/01/2022 7,124.22
81208 4654 LOUIS HEARN 04/01/2022 2,940.00
81209 3222 HENRY SCHEIN, INC. 04/01/2022 680.87
81210 4497 ROLINDA HERNANDEZ 04/01/2022 276.50
81211 3225 HOME DEPOT CREDIT SERVICES 04/01/2022 160.88 81212 3999 IRON MOUNTAIN 04/01/2022 42.40
81213 4555 SCOTT JAECKEL 04/01/2022 159.99
81214 4651 JANET DAVIS & ASSOCIATES 04/01/2022 500.00
81215 3237 JC'S LAWN SERVICE 04/01/2022 10,000.00
81216 3686 KINGSBURG AUTO CARE 04/01/2022 320.74
81217 3253 KINGSBURG CHAMBER OF COMMERCE04/01/2022 2,500.00 81218 3625 KINGSBURG MEDIA FOUNDATION 04/01/2022 942.02 81219 3266 BRENT KROEGER 04/01/2022 334.58
81220 3269 LAW & ASSOCIATES 04/01/2022 1,800.00
81221 3271 LEAGUE OF CALIFORNIA CITIES 04/01/2022 50.00 81222 4603 LEIST AND ASSOCIATES 04/01/2022 6,409.80
81223 3275 LIEBERT, CASSIDY, WHITMORE 04/01/2022 906.00 81224 3276 LIFE ASSIST INC 04/01/2022 63.75
81225 3277 LINCOLN AQUATICS 04/01/2022 2,143.00
81226 4121 JEFFREY T. LOYD 04/01/2022 24.48
81227 4653 MAINTENANCE SUPERINTENDENTS ASSOCIATES 04/01/2022 50.00 AP Checks by Date - Summary by Check Date (4/13/2022 3:05 PM) Page 1 Check No Vendor No Vendor Name Check Date Check Amount
81228 4329 MCI COMM SERVICES 04/01/2022 34.93
81229 4643 MY BARCO CO., INC. 04/01/2022 10,175.35
81230 4659 NCP INC. CITY PLUMBING 04/01/2022 129.00
81231 3307 NELSON'S ACE HARDWARE 04/01/2022 2,203.23
81232 4655 BLAKE NINO 04/01/2022 3,000.00
81233 3611 HOLLY OWEN 04/01/2022 35.00
81234 3315 P G & E 04/01/2022 9,823.76
81235 3450 ABIGAIL PALSGAARD 04/01/2022 368.00
81236 4635 PAYCHEX 04/01/2022 425.00
81237 3321 PETERS ENGINEERING GROUP 04/01/2022 111,239.78 81238 3329 POLYACK MARKETING 04/01/2022 3,300.00
81239 3335 PROFORCE LAW ENFORCEMENT 04/01/2022 1,372.86 81240 3354 ROBINA WRIGHT ARCHITECT & ASSO 04/01/2022 800.00 81241 3380 STATE OF CALIFORNIA-D O J 04/01/2022 70.00
81242 3385 STRYKER SALES CORPORATION 04/01/2022 363.10
81243 4661 SUNRUN 04/01/2022 238.05
81244 3397 THE GAS COMPANY 04/01/2022 120.19
81245 4016 ULINE Shipping Supplies Specialist 04/01/2022 738.14 81246 3416 VERIZONWIRELESS 04/01/2022 620.77
81247 3419 VIKING CLEANING SERVICE 04/01/2022 3,500.00
81248 3493 VILLAGE TIRE SALES 04/01/2022 1,619.20
81249 3448 CHRISTINA WINDOVER 04/01/2022 35.00
81250 3430 WONG, ANDY & BETTY 04/01/2022 2,600.00
81251 4468 FER YANG 04/01/2022 196.36
Total for 4/1/2022: 242,104.55
Report Total (71 checks): 242,104.55
AP Checks by Date - Summary by Check Date (4/13/2022 3:05 PM) Page 2
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor North & City Council
REPORT FROM: Holly Owen, Community Development Director REVIEWED BY: AJH AGENDA ITEM: Multi-Jurisdictional Housing Element
ACTION REQUESTED: ___Ordinance ___Resolution ____Motion ____Receive/File
EXECUTIVE SUMMARY
General Plan State Law
Government Code Section (GCS) 65300 requires cities and counties to adopt and maintain a General Plan with a minimum of seven mandatory elements: Land Use; Circulation; Housing; Conservation; Open Space; Noise; and Safety. In recent years, an eighth required element, Environmental Justice, has been added.
Housing Elements
California State Law specifies the contents for Housing Elements as well as the required update schedule. Unlike other General Plan elements, a Housing Element must be updated every eight years. It must identify and analyze the following:
• An existing and projected housing assessment needs to ensure that adequate housing capacity exists for all economic segments of the community (through policy adoption/zoning). • This is not a requirement to build housing, rather, the requirement is to ‘remove obstacles’ to housing constraints and plan for a diversity of housing (through zoning/policy). • This planning involves a “RHNA number,” which is a minimum number of new homes across income levels that a community must plan to accommodate through its Housing Element. Kingsburg’s proposed RHNA number is currently 826 housing units (single family and multifamily). Fresno COG, in conjunction with the RHNA Subcommittee, has prepared a draft methodology (Attachment B) to distribute the regional RHNA number among all jurisdictions in the region.
At the end of the process, which includes analysis, community hearings and drafting of the document, the California Department of Housing and Community Development (HCD) must review and certify each jurisdiction’s Housing Element to ensure compliance with State law. For this process to work smoothly and without delays, it is important to have early communication with HCD staff. HCD is very aware of and encourages this local countywide effort.
A certified Housing Element is a key requirement to qualify for a number of grants and other funding sources.
Multi-Jurisdictional Housing Element (MJHE)
The City of Kingsburg, with 13 other cities and in coordination with the Fresno Council of Governments, participated in the 5th Cycle (2015-2023) multi-jurisdictional housing element. The Multi-Jurisdictional Housing Element is a regional housing document that effectively acts as the State-mandated housing element for all participating jurisdictions. This effort, accomplished in 2015-2016, was a unique, award-winning collaborative effort on the part of all the local cities involved to accomplish this task. Participating jurisdictions included Fresno County, Clovis, Meeting Date: 04/20/2022
Agenda Item: 5.3
Coalinga, Fowler, Huron, Kerman, Kingsburg, Mendota, Parlier, Reedley, San Joaquin, Sanger, and Selma.
The Multi-Jurisdictional Housing Element was a single document, made up of two sections:
• the main body, which described demographics, housing needs, resources, and constraints at a regional level and included goals and policies common to all participating jurisdictions; and • individual appendices, which contained details for each jurisdiction (i.e., sites inventory, governmental constraints, evaluation of the existing Housing Element) and individual implementation programs for Kingsburg.
In 2015, each city spent an average of $25,000-$30,000 on the MJHE, and cost savings were gained with utilizing circuit planning services provided by Fresno COG. Attachment C to this staff report is the current cost sharing agreement outlining the costs for all participants. The city will continue to seek any supplemental sources of funding as they become available, such as grants.
Staff is recommending that because of the cost savings and necessary staffing time required to perform the update, the city participate in the MJHE and approve the attached resolution, which will formalize Kingsburg’s participation in this process.
RECOMMENDED ACTION BY CITY COUNCIL
1. Staff recommends approval of the resolution by Council to confirm Kingsburg’s participation in the MJHE process, and to authorize the City Manager to enter into an agreement to participate in the process.
POLICY ALTERNATIVE(S)
1. Council could choose not to participate in the multi-jurisdictional housing element process and hire their own consultant. Some of the consequences of a delayed certified Housing Element, or not preparing one at all, are outlined in Attachment A.
STRATEGIC GOAL(S) MET:
1. Promote Sustainable Development
FINANCIAL INFORMATION
PRIOR ACTION/REVIEW
The City of Kingsburg, with 13 other cities and in coordination with the Fresno Council of Governments, participated in the 5th Cycle (2015-2023) multi-jurisdictional housing element.
BACKGROUND INFORMATION
See above.
ATTACHED INFORMATION
1. Attachment A -Resolution
2. Attachment B -Draft Methodology from Fresno Council of Governments
3. Attachment C-Sixth Cycle Multi-Jurisdictional Housing Element Cost Sharing Agreement FISCAL IMPACT:
1. Is There A Fiscal Impact? Yes
2. Is it Currently Budgeted? No
3. If Budgeted, Which Line? N/A
RESOLUTION NO. 2022-022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KINGSBURG,
CALIFORNIA, AUTHORIZING THE CITY OF KINGSBURG TO PARTICIPATE IN THE
FRESNO COUNTY MULTIJURISDICTIONAL HOUSING ELEMENT UPDATE AND COST SHARING AGREEMENT.
WHEREAS, Government Code Section 65588 requires local agencies to review and revise the housing elements to their comprehensive general plan in compliance with Section 65580 through 65589, Chapter 1143, Article 10.6, and
WHEREAS, the Fresno Council of Governments (FCOG) is a Joint Powers agency created by the fifteen incorporated cities in Fresno County and the County of Fresno, pursuant to Government Code Sections 6500 et. Seq., and
WHEREAS, the local government agencies in Fresno County have requested FCOG to hire a consultant to perform a coordinated update to the housing element of each local agency’s General Plan at no cost to FCOG, and
WHEREAS, FCOG convened a Project Development Team (PDT) consisting of the local member agencies, to review the Request for Proposal, evaluate bids, select a consultant, develop a cost sharing arrangement and make a recommendation to the FCOG board to hire the consultant, and WHEREAS, the cost sharing arrangement includes the cost of the consultant and $75,000 to cover FCOG administration, and
WHEREAS, each participating member agency agrees to reimburse FCOG for the cost of the Fresno County Multijurisdictional Housing Element Study in accordance with the cost sharing arrangement attached herein, and
WHEREAS, time is of the essence and each participating member agency agrees to facilitate the flow of information to the consultant to provide a timely report, and NOW, THEREFORE, BE IT RESOLVED, that the Kingsburg City Council adopts the Fresno County Multijurisdictional Housing Element Cost Sharing Arrangement and agrees to participate in the study and reimburse FCOG for actual cost incurred.
I, Abigail Palsgaard, City Clerk of the City of Kingsburg, do hereby certify that the foregoing resolution was duly passed and adopted at a regular meeting of the Kingsburg City Council held on the ___ day of April, 2022, by the following vote:
Ayes: Council Member(s):
Noes: Council Member(s):
Absent: Council Member(s):
Abstain: Council Member(s):
____________________________
Abigail Palsgaard, City Clerk
City of Kingsburg
Fresno COG Draft RHNA Methodology | Page 1
Fresno Council of Governments
Sixth Cycle Regional Housing Needs Allocation
Draft Methodology
March 2022
INTRODUCTION
California housing law requires each local jurisdiction to plan to accommodate its share of the state’s housing need.
The Regional Housing Needs Allocation, or RHNA, is the process outlined in State law for determining the number of housing units in each of four affordability tiers (very low-, low-, moderate-, and above moderate-income) assigned to each jurisdiction in a region for the eight-year RHNA cycle.
The RHNA process generally begins with the issuance of a Regional Housing Needs Determination (Regional Determination) from the California Department of Housing and Community Development (HCD), which assigns the number of housing units to a region in each income tier for the RHNA cycle and is meant to equal the number of housing units needed to address a region’s existing and projected housing need over the eight-year period. The region’s council of governments is then responsible for developing a methodology to distribute the Regional Housing Needs Determination among all jurisdictions in the region. Finally, each local jurisdiction is responsible for accommodating the assigned units in the housing element of its general plan.
The methodology is developed in three phases: first, a proposed methodology is prepared and undergoes a public hearing. The methodology may be revised based on any input received, then a draft methodology is submitted to HCD for a 60-day review. Finally, the methodology may be revised to respond to HCD’s findings, and a final methodology is adopted by resolution. Following adoption, the final methodology is incorporated into a RHNA Plan document, which must undergo a shorter, two-phase review process.
In accordance with California law, Fresno Council of Governments (Fresno COG) has prepared this Draft Methodology for its sixth RHNA cycle, the housing projection period beginning June 30, 2023, and ending December 31, 2031. The Proposed Methodology that preceded this document was developed with the guidance of the Fresno COG RHNA Subcommittee (RHNA Subcommittee), a 20-member advisory committee composed of representatives from each of the 16 Fresno COG member jurisdictions; three at-large members representing Fresno Building Industry Association, the Fresno Housing Authority, and Leadership Counsel for Justice and Accountability; and a nonvoting representative from HCD. The Proposed Methodology underwent a 30-day public review period, a public hearing, and was reviewed and commented on by the Fresno COG Transportation Technical Committee, Policy Advisory Committee, and Policy Board. This Draft Methodology includes revisions from the Proposed Methodology, based on input provided during the review period. The Draft Methodology consists of two primary components: the overall jurisdictional allocation and the distribution of units by income tier. Following is an overview of the methodology of each component in addition to an analysis of how the resulting allocation works to further five statutory objectives.
JURISDICTIONAL ALLOCATION
The Fresno COG Regional Determination, established by HCD in consultation with Fresno COG, totals 58,298 housing units. This Draft Methodology distributes the allocation across Fresno COG’s 16 member jurisdictions in accordance with regional and State goals, priorities, and objectives. To do so, the Draft Methodology begins with a base allocation, then adjusts the allocations from the base using five weighted factors.
Fresno COG Draft RHNA Methodology | Page 2
The base allocation is a starting point that shows the generalized number of housing units to be assigned to each jurisdiction based on the overall relative sizes of the jurisdictions. In Fresno COG’s Draft Methodology, the base allocation is derived equally from two data sets:
» Share of existing (2021) population within each jurisdiction (excluding spheres of influence (SOI) and populations living in group quarters).
1 » Share of expected population growth 2020-2050 (including SOIs and excluding population living in group quarters).
2 The base allocation of housing units for each jurisdiction is calculated by multiplying each of these two shares by the Regional Determination, dividing the result in half (to apply the 50% weight), and summing the two results, as illustrated below. The resultant base allocation is shown in Table 1.
Jurisdiction’s share of existing population x 58,298 housing units x 0.5 +
Jurisdiction’s share of population growth x 58,298 housing units x 0.5 Jurisdiction’s base allocation
1 Source: Department of Finance, Table E-5, 2020. 2 Source: Fresno COG 2019-2050 Growth Projections, 2020.
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TABLE 1 BASE ALLOCATION
Jurisdiction
Share of Base Allocation Derived
from Share of Existing Population
(2021) not including SOI
Share of Base Allocation Derived
from Share of Regional Population
Growth 2020–2050, including SOI
Final Base Allocation: (50%
weights applied and result
summed)
Clovis* 4,280 3,459 7,739
Coalinga* 385 476 861
Firebaugh* 373 231 604
Fowler* 197 188 385
Fresno* 17,751 15,524 33,275
Huron 183 210 393
Kerman* 565 457 1,022
Kingsburg* 454 372 826
Mendota* 360 353 713
Orange Cove 294 272 566
Parlier* 435 449 884
Reedley* 746 741 1,487
Sanger* 883 776 1,659
San Joaquin* 92 117 209
Selma* 966 695 1,661
Unincorporated
County 1,185 4,829 6,014
Total 29,149 29,149 58,298
Source: Fresno COG 2019-2050 Growth Projections, 2020; California Department of Finance, Table E-5, 2021; PlaceWorks, 2021 * Due to rounding, the initial total allocations do not sum to the regional determination of 58,298, so the base allocations shown above include adjustments of 0.5 or -0.5 to some jurisdictions shares in one or more columns.
The base allocation establishes a foundational allocation of RHNA units for each jurisdiction that accounts for the significant size differences between jurisdictions. For example, according to the California Department of Finance (DOF), the most populous city in the region and the fifth most populous city in California, the City of Fresno, has 123 times the population and nearly 200 times more housing units than the least populous jurisdiction in the Fresno COG region, the City of San Joaquin.
The base allocation also incorporates differences in expected future growth between jurisdictions. The 2020–2050 Fresno COG Growth Projections attribute 61% of anticipated regional housing growth to the City of Fresno and only
0.31% to the City of San Joaquin. Though these jurisdictions are anticipated to experience vast differences in numeric growth, these projections represent similar percentage housing unit increases relative to their current numbers, with Fresno expected to grow by 23% of the city’s 2020 population and San Joaquin expected to grow by 18% of its 2020 population, both by the year 2050.
ALLOCATION FACTORS
Using the base allocation as a foundation, the Draft Methodology adjusts each jurisdiction’s allocation using a combination of weighted factors. All factors are configured so that higher scores indicate that the jurisdiction is more favorable to support housing, and lower scores indicate less favorable conditions for housing. For example, jurisdictions with more jobs receive higher scores for regional share of jobs, and jurisdictions with high fire risk Fresno COG Draft RHNA Methodology | Page 4
receive a lower score for fire risk, resulting in more housing units assigned to jurisdictions with more jobs and lower risk of wildfire.
In preparation for choosing the allocation factors, Fresno COG collected and analyzed more than 30 data layers to assess the following:
» Existing affordable housing stock
» Homelessness
» Housing unit types and tenure
» Housing vacancy
» Current population and the distribution of household growth in the Regional Transportation Plan (the base allocation)
» Cost-burdened households
» Overcrowding
» Vehicle miles traveled
» Transit connectivity
» Jobs (current and projected)
» Jobs-housing balance and jobs-housing fit (lower-wage jobs and affordable housing) » Opportunity measures
» Childhood poverty status
» Loss of housing units from the Creek Fire
» Wildfire risk
» Flood and erosion hazards
» Groundwater supply
» Designated agricultural land
» Protected and/or sensitive environmental lands (including national and state park and forest land) After thoughtful consideration spanning multiple meetings of the RHNA Subcommittee; data review sessions with jurisdiction representatives, Fresno COG staff, and consultants; and consultation with HCD, Fresno COG selected the factors listed below to adjust the base RHNA allocation for each jurisdiction. Each of the factors advances important priorities in the Fresno COG region and statutory RHNA objectives:
» Percentage of non-vacant housing units in each jurisdiction (relative to each jurisdiction’s total housing stock).
» TCAC Opportunity Score (average score across census geographies within each jurisdiction from the California TCAC (Tax Credit Allocation Committee) Opportunity Maps). » Regional share of jobs in 2020 (the percentage of jobs in each jurisdiction relative to the entire county) » Regional share of projected job growth between 2020 and 2035. » Percent of developable or “unconstrained” land, defined as land that is not protected from development due to status as important farmland, sensitive wildlife habitat or wetland, or conservation land and that is not in areas at high risk of environmental hazards, including flooding, wildfire, erosion, and earthquakes.
To use the selected factors to assign housing units, each factor is normalized on a scale of 0.5 to 1.5. The normalized scale serves two purposes:
1. It supports ease of computation and comparison of factors among each other.
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2. The range of the scale (0.5 to 1.5) is large enough to impact the distribution of housing units by adjusting them up (any score between 1 and 1.5) or down (any score between 0.5 and 1) from the base allocation, but not so large that the base allocation loses its value.
Each factor and its scaled score by jurisdiction are shown in Table 2 and described in more detail below.
TABLE 2 FACTORS AND SCALED SCORES
Jurisdiction Non-vacant
Units
HCD/TCAC
Opportunity
Score
Regional Share
of Current Jobs
(2020)
Regional Share of
Projected Job Growth
(2020–2035)
Percentage of
Unconstrained
Land
Clovis 1.17 1.50 0.64 0.67 1.33
Coalinga 0.50 0.68 0.51 0.51 0.95
Firebaugh 1.23 0.62 0.50 0.51 0.72
Fowler 1.14 0.83 0.51 0.52 1.45
Fresno 1.10 0.80 1.50 1.50 1.13
Huron 1.07 0.50 0.50 0.51 0.69
Kerman 1.50 0.81 0.51 0.53 1.45
Kingsburg 1.50 1.03 0.51 0.52 1.50
Mendota 1.30 0.65 0.50 0.50 1.08
Orange Cove 0.99 0.88 0.50 0.50 1.17
Parlier 1.05 0.57 0.51 0.51 1.21
Reedley 1.29 0.89 0.52 0.53 1.38
Sanger 1.18 0.67 0.52 0.52 1.37
San Joaquin 1.03 0.84 0.50 0.50 1.21
Selma 1.14 0.67 0.52 0.54 1.43
Unincorporated County 1.43 0.90 0.79 0.75 0.50
See below for source details for each data set.
Non-vacant Units
This is the percentage of units in each jurisdiction that are not vacant, resulting in a higher RHNA allocation to jurisdictions that currently have lower vacancy rates. This factor represents an indicator of housing need in each jurisdiction and comes from the DOF, Table E-5, for the year 2020.
TCAC Opportunity Score
The TCAC Opportunity Map scoring factor supports the State’s goal to affirmatively further fair housing by facilitating the development of affordable housing in high opportunity / high amenity areas. TCAC opportunity scores are calculated at the census tract level (for urban areas) and the block group level (for rural areas) using 21 indicators: income, adult educational attainment, labor force participation, job proximity, median home value, 12 environmental health/pollution indicators, 4th-grade math proficiency, 4th-grade reading proficiency, high school graduation rate, and students living above the federal poverty level.
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TCAC scores for each jurisdiction are calculated by taking the average 2021 TCAC scores across all tracts/block groups in each jurisdiction. Where a census geography crosses the boundary of multiple jurisdictions, a proportionate share of the TCAC index score was added to each jurisdiction’s average score.
Jobs (Current and Projected)
Allocating more housing to jurisdictions with higher concentrations of jobs can alleviate housing demand pressure in job-rich areas while reducing regional vehicle miles traveled (VMT) and associated greenhouse gas (GHG) emissions because of long commutes to and from work. Both current regional shares of jobs and regional shares of expected job growth are included in the methodology to allocate more housing where jobs are currently concentrated and where job growth is expected. Current jobs data were sourced from the California Employment Development Department (EDD, 2020), and job projections were sourced from Fresno COG Growth Forecasts (2021).
Unconstrained Land
Fresno County is one of the most productive agricultural regions in the world; the county produced nearly eight billion dollars of agricultural products in 2019. Fresno County is also home to several national and state parks and national forests, including Sierra National Forest, Sequoia National Forest, and Kings Canyon National Park. The unconstrained land factor was included in the methodology to allocate more housing to jurisdictions with greater shares of land suitable for housing development, which excludes important farmland, conservation land and biological resources, and land with high risk of environmental hazards.
The percentage of unconstrained land (relative to each jurisdiction’s total acreage) is the percent acreage of land in each jurisdiction that is not constrained by one or more of the following factors:
» Land designated as important farmland by the California Department of Conservation’s Farmland Mapping and Monitoring Program (FMMP), which includes the following categories:
o Prime farmland, unique farmland, farmland of statewide or local importance, and grazing land. » Land registered as “Williamson Act” land by Fresno County, that is, parcels designated for agricultural use or related open space use under the Williamson Act, or California Land Conservation Act of 1965. » Land designated for conservation or that is biologically sensitive. This includes wetlands (from the National Wetlands Inventory or NWI), any land within a state park or national park or forest, and land that is designated as “critical habitat” by the California Natural Diversity Database (CNDDB). » Land within areas with the following environmental hazard risk designations:
o Wildfire: high and very-high wildfire risk areas, based on CAL FIRE’s Fire and Resource Assessment Program designations.
o Flooding: 100-year and 500-year flood zones based on FEMA’s National Flood Hazard Layer. o Soil Erosion: Moderate and severe soil erosion risk areas based on the US Department of Agriculture’s Soil Survey Geographic database.
o Earthquakes, based on fault location data and Alquist-Priolo zones from the US Geological Survey.
The acreage of constrained land is subtracted from the total acreage of land in each jurisdiction to obtain the unconstrained land factor, and jurisdictions with higher percent acreages of unconstrained land (relative to their total acreage) are allocated more housing.
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FACTOR WEIGHTING
Following selection of the factors, Fresno COG and its subcommittee assigned weights to each for use in the allocation process. These weights establish what percentage of the total RHNA allocation is distributed to each jurisdiction based on that factor. All selected factor weights are listed below. Table 3 shows the resulting factoradjusted allocations for each jurisdiction. » Percent of non-vacant housing units: 35%
» TCAC Opportunity score: 20%
» Regional share of jobs in 2020: 12.5%
» Regional share of projected job growth between 2020 and 2035: 12.5% » Percentage of unconstrained land: 20%
TABLE 3 BASE ALLOCATION AND FACTOR ADJUSTMENT
Jurisdiction Base Allocation Factor-Adjusted Allocation Net Change Clovis 7,739 8,759 1,020
Coalinga 861 552 (309)
Firebaugh 604 432 (172)
Fowler 385 331 (54)
Fresno 33,275 35,972 2,697
Huron 393 311 (82)
Kerman 1,022 1,037 15
Kingsburg 826 861 35
Mendota 713 626 (87)
Orange Cove 566 458 (108)
Parlier 884 715 (169)
Reedley 1,487 1,428 (59)
Sanger 1,659 1,458 (201)
San Joaquin 209 195 (14)
Selma 1,661 1,456 (205)
Unincorporated County 6,014 3,707 (2,307)
Total 58,298 58,298 -
INCOME ALLOCATION METHODOLOGY
The regional housing allocation provided by HCD includes both a total number of housing units and a distribution of those housing units across four affordability tiers: very low-income, low-income, moderate-income, and above moderate-income. Once the overall allocation for each jurisdiction is finalized, each jurisdiction’s housing unit allocation must be distributed among the four income tiers, and the sum allocation in each income tier across all jurisdictions must equal the total amount set by HCD. The Regional Determination for each income tier is shown in Table 5.
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TABLE 5 FRESNO COG REGIONAL INCOME TIER ALLOCATION
Units Percentage of Total**
Very low* 15,592 26.7%
Low 9,143 15.7%
Moderate 9,047 15.5%
Above Moderate 24,516 42.1%
Total 58,298 100%
*Extremely low-income units are included in the very low-income category, constituting 14% of the total allocation. **The percent allocations shown are rounded to the nearest tenth of a percent. The number of units shown in the first column is the exact amount allocated through the Regional Determination.
This Draft Methodology uses the Income-Shift approach to distribute units by income tier to each jurisdiction. The Income-Shift approach distributes the total RHNA unit allocations of each jurisdiction (calculated in the previous step) between the four income tiers based on the relationship between the percentage of units in the income tier of the Regional Determination and each jurisdiction’s existing share of units in the income tier. The adjustment factor determines the extent to which each jurisdiction’s allocation of units by income tier will match the distribution of the Regional Determination or move all jurisdictions toward a more even distribution of units by income tier overall.
An adjustment factor of 100% would result in all jurisdictions’ allocation by income tier being equal to the percent distribution of the Regional Determination of that tier (e.g., 26.7% of each jurisdiction’s allocation would be for the very low-income tier, equal to the 26.7% of units assigned to the region as very low-income). As the adjustment factor increases, each jurisdiction’s allocation of units by income tier changes, depending on how much higher or lower the jurisdiction’s existing distribution of units in that income tier is compared to the Regional Determination.
For example, the Regional Determination in the low-income tier is 15.7%. A jurisdiction with only 11% of existing units in the low-income tier would receive an allocation greater than 15.7%, and a jurisdiction with an existing distribution of 35% of units in the low-income tier would receive an allocation lower than 15.7%. HCD recommends the adjustment factor be set at a minimum of 150%.
Fresno COG, following the guidance of the RHNA Subcommittee, selected an Income-Shift adjustment factor of 150%. The resultant distribution of units across all income tiers—the Draft Fresno COG 6th Cycle RHNA allocation—is shown in Table 6.
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TABLE 6 DISTRIBUTION BY JURISDICTION BY INCOME TIER
Jurisdiction
Very Low Low Moderate Above Moderate Total
Housing
Units % Housing
Units % Housing Units % Housing Units % Housing Units
Clovis** 32.6% 2,855 17.3% 1,512 16.1% 1,412 34.0% 2,980 8,759 Coalinga** 27.7% 153 16.8% 93 15.8% 87 39.7% 219 552
Firebaugh 22.9% 99* 10.2% 44* 14.8% 64* 52.1% 225* 432
Fowler 27.8% 92 16.6% 55 14.2% 47 41.4% 137 331
Fresno** 25.5% 9,166* 16.0% 5,742 15.3% 5,514* 43.2% 15,550* 35,972 Huron 14.1% 44* 13.8% 43* 16.7% 52* 55.3% 172* 311
Kerman** 26.8% 278 12.4% 129* 15.5% 161* 45.2% 469* 1,037 Kingsburg 28.1% 242 18.2% 157 17.1% 147 36.6% 315 861
Mendota 20.1% 126* 10.4% 65* 14.9% 93* 54.6% 342* 626
Orange Cove 14.0% 64* 10.3% 47* 18.3% 84* 57.4% 263* 458 Parlier 20.1% 144* 12.7% 91* 14.5% 104* 52.6% 376* 715
Reedley 27.6% 394 12.3% 176* 14.2% 203* 45.9% 655* 1,428 Sanger 27.6% 402 12.8% 186* 16.2% 236* 43.5% 634* 1,458 San Joaquin 19.5% 38* 13.8% 27* 17.4% 34* 49.2% 96* 195 Selma 26.2% 381* 10.9% 158* 15.5% 226* 47.5% 691* 1,456 Unincorporated County 30.1% 1,114 16.7% 618 15.7% 583 37.6% 1,392 3,707 HCD Requirement 26.7% 15,592 15.7% 9,143 15.5% 9,047 42.1% 24,516 58,298 * The initial Income-Shift adjustment results in a discrepancy between the Regional Determination by income tier and the sum of allocations by income tier. To address this, Fresno COG made manual adjustments that resulted in reduced allocations of the very low- and/or low-income tiers for jurisdictions with an existing share of units in these income tiers that is greater than the Regional Determination and corresponding increases to those jurisdiction’s allocations in the moderate- and above moderate-income tiers.
**Additional manual adjustments (of 1.0 or -1.0) were made to address discrepancies with the total allocation and the sum allocations by income tier resulting from rounding in previous steps.
STATUTORY OBJECTIVES
Following State law, the Draft Methodology furthers all statutory objectives, as outlined below.
Objective 1. Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties in the region in an equitable manner, which shall result in each jurisdiction receiving an allocation of units for low- and very low-income households.
As described above, the distribution of units overall follows a data-driven process informed by regional priorities and statutory objectives to co-locate housing where there is need (35% weighting for the non-vacant units factor), opportunity (20% weighting for TCAC Opportunity Score factor), jobs (25% combined weighting for existing and future jobs factor), and land suitable for development (20% weighting for the unconstrained lands factor). Further, the methodology for allocating units in each income tier supports a redistribution of units, so that jurisdictions that currently have a lesser share of low- and very low-income units receive a larger share of units in those income tiers.
The methodology allocates units in all four income tiers to each of the region’s 16 jurisdictions.
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Objective 2. Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development patterns, and the achievement of the region’s greenhouse gas reductions targets provided by the State Air Resources Board pursuant to Section 65080.
The Draft Methodology’s incorporation of the Fresno COG Growth Forecast used in the Regional Transportation Plan as the base allocation further supports consistency of the Draft Methodology with planning efforts to achieve regional GHG emission reduction targets by distributing RHNA units to areas expected to grow in population.
Additionally, the Draft Methodology’s 20% weight placed on the unconstrained lands factor allocates the preponderance of units to incorporated, urbanized municipalities and away from the unincorporated county, which constitutes 97% of Fresno County’s total land acreage, of which only 8% is unconstrained. Allocating housing units to incorporated areas with existing public services and infrastructure supports infill and socioeconomic equity and protects environmental and agricultural resources located primarily in the unincorporated county.
Finally, the combined 25% weight on the two jobs factors encourages efficient development patterns by locating housing near current job centers and in areas where jobs are expected to grow, supporting efforts to minimize VMTs and GHG emissions.
Objective 3. Promoting an improved intraregional relationship between jobs and housing, including an improved balance between the number of low-wage jobs and the number of housing units affordable to low-wage workers in each jurisdiction.
A typical target relationship between the number of jobs and the number of housing units is between 1.3 and 1.6 jobs for every housing unit. Only the city of Fresno has achieved this balance, although multiple jurisdictions (and the countywide average) are only slightly under this ideal range, and the city of Kerman is slightly over this ideal range. In general, most jurisdictions in the region have an excess of housing units compared to jobs. Existing jobs and housing data are shown in Table 7.
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TABLE 7 JOBS-HOUSING BALANCE
Jurisdiction Total Jobs Total Housing Units Jobs-Housing Balance Clovis 35,252 38,664 0.91
Coalinga 3,590 4,721 0.76
Firebaugh 1,557 2,151 0.72
Fowler 2,583 2,143 1.21
Fresno 236,014 178,831 1.32
Huron 239 1,812 0.13
Kerman 7,069 3,983 1.77
Kingsburg 4,774 4,077 1.17
Mendota 1,523 2,965 0.51
Orange Cove 770 2,834 0.27
Parlier 2,848 4,158 0.68
Reedley 9,401 7,333 1.28
Sanger 8,287 7,396 1.12
San Joaquin 698 1,043 0.67
Selma 6,682 7,511 0.89
Unincorporated County 59,710 61,520 0.97
County Total 380,997 331,142 1.15
Source: ACS, 2019 (for housing estimates); Longitudinal Employer-Household Dynamics (LEHD) Survey, 2019 (for jobs estimates).
The Draft Methodology furthers the Jobs-Housing Balance RHNA Objective by including both current jobs and expected job growth as allocation factors at a combined 25% weight (12.5% each), thereby directing more housing units to jurisdictions with more existing and projected jobs so as not to exacerbate the imbalance of jobs to housing units. The Draft Methodology allocates more units, relative to the base allocations, to three of the six jurisdictions with a current jobs-housing balance above 1.0 (the cities of Fresno, Kerman, and Kingsburg), therefore allocating more housing units to jurisdictions with more jobs. These three jurisdictions have higher TCAC scores than most others in the region, making them especially appropriate candidates for the addition of housing units based on job availability. The other jurisdictions with a current jobs-housing balance above 1.0 (the cities of Fowler, Reedley, and Sanger) do not receive greater allocations compared to their base due to the stronger impact of the non-vacant units, TCAC, and unconstrained lands factors, which serve the other statutory objectives. Further, except the city of Clovis, all jurisdictions with a current jobs-housing balance below 1.0 are allocated fewer units compared to their base allocations. Though Clovis has a smaller share of jobs relative to housing units, the city’s allocation increases from the base in support of other objectives, especially objective 5.
Table 8 shows the same relationship between lower-wage jobs (those earning less than $3,333 per month) and housing units affordable at the low- and very low-income affordability thresholds, referred to as the “jobs-housing fit.”
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TABLE 8 JOBS-HOUSING FIT
Jurisdiction Total Low-Wage Jobs
(<$3,333/mo)
Total Housing Units
(<80% AMI) Jobs-Housing Fit
Clovis 22,824 10,250 2.23
Coalinga 1,561 1,626 0.96
Firebaugh 951 1,225 0.78
Fowler 1,911 800 2.39
Fresno 139,457 73,970 1.89
Huron 176 1,183 0.15
Kerman 5,584 1,795 3.11
Kingsburg 3,154 1,377 2.29
Mendota 1,114 1,812 0.61
Orange Cove 540 2,050 0.26
Parlier 1,805 2,286 0.79
Reedley 6,953 3,156 2.20
Sanger 5,706 3,108 1.84
San Joaquin 312 569 0.55
Selma 4,756 3,563 1.33
Unincorporated County 36,536 17,741 2.06
County Total 233,340 126,511 1.84
Source: ACS, 2019 (for housing estimates); Longitudinal Employer-Household Dynamics (LEHD) Survey, 2019 (for jobs estimates).
The cities of Clovis, Fowler, Fresno, Kerman, Kingsburg, Reedley, and Sanger and the unincorporated county all have higher ratios of lower-income jobs compared to affordable housing units than the upper limit of the ideal range of
1.3 to 1.6 jobs per housing unit. The Draft Methodology supports an improved jobs-housing fit by directing more housing units overall and/or a greater share of low- and/or very low-income units to these jurisdictions, as summarized below:
» More RHNA units are allocated overall to three of the jurisdictions with the poorest existing jobs-housing fit—Clovis, Kerman, and Kingsburg—compared to their base allocations, which are derived from existing and projected population.
» A greater share of units in the very low-income tier than the Regional Determination is allocated to the cities of Clovis, Fowler, Kerman, Kingsburg, Reedley, and Sanger and to the unincorporated county. » A greater share of units in the low-income tier than the Regional Determination is allocated to the cities of Clovis, Fowler, Fresno, and Kingsburg and the unincorporated county.
The Draft Methodology does not result in a greater allocation of units overall and greater share of units in the lowand very low-income categories for all jurisdictions with identified jobs-housing fit imbalances because of conflicts between this objective and objectives 2 and 5, pertaining to promoting infill and agricultural preservation and affirmatively furthering fair housing.
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Objective 4. Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent American Community Survey.
The Draft Methodology’s Income-Shift approach to distributing housing units by income tier allocates a smaller proportion of housing units by income tier to jurisdictions whose existing share of units in that tier is larger than the Regional Determination’s share. Similarly, the methodology allocates a larger proportion of units by income category to jurisdictions whose existing share of units in that income tier is smaller than the Regional Determination’s share. As a result, all jurisdictions are assigned housing units by each income tier at levels that would move their share of units by income tier closer to the regional average once constructed.
Objective 5. Affirmatively furthering fair housing.
This Draft Methodology supports the objective of affirmatively furthering fair housing by incorporating the TCAC Opportunity Score as a factor in its RHNA allocation methodology. Jurisdictions with a higher average TCAC score are allocated more low- and very low-income RHNA units because these are areas considered more amenity rich and with higher opportunity overall for low-income residents.
Furthermore, the Draft Methodology results in 18% of low- and very low-income housing units allocated to the City of Clovis, which offers the greatest opportunity in the Fresno COG region compared to any other jurisdiction by a significant margin, as defined by the HCD/TCAC Opportunity Maps. Clovis is one of five jurisdictions in the county to achieve a positive TCAC score (0.59) when the TCAC Opportunity Map scores for census block groups and tracts are averaged for each jurisdiction. Other positive average TCAC scores range between 0.04 and 0.18. All other jurisdictions scored at or below zero. Thus, the placement of a preponderance of units in the City of Clovis is a strong step toward affirmatively furthering fair housing in the Fresno COG region. Table 9 shows the average TCAC scores alongside the normalized TCAC factor score (also shown in Table 2).
TABLE 9 TCAC OPPORTUNITY SCORE AVERAGE BY JURISDICTION
Jurisdiction Average TCAC Score TCAC Normalized Score
Clovis 0.59 1.50
Coalinga -0.14 0.68
Firebaugh -0.19 0.62
Fowler 0.00 0.83
Fresno -0.03 0.80
Huron -0.29 0.50
Kerman -0.02 0.81
Kingsburg 0.18 1.03
Mendota -0.16 0.65
Orange Cove 0.04 0.88
Parlier -0.24 0.57
Reedley 0.05 0.89
Sanger -0.14 0.67
San Joaquin 0.00 0.84
Selma -0.15 0.67
Unincorporated County 0.06 0.90
Source: California Tax Credit Allocation Committee, 2021 Opportunity Area Maps, 2021; PlaceWorks, 2021 FCOG Admin Consultant Cost
TOTAL COST
(Consultant Cost +
FCOG Admin)
Clovis N/A N/A N/A
County $ 5,000 $ 144,091 $ 149,091
Fresno* $ 5,000 $ 238,992 $ 243,992
Coalinga $ 5,000 $ 116,296 $ 121,296
Firebaugh $ 5,000 $ 116,296 $ 121,296
Fowler $ 5,000 $ 116,296 $ 121,296
Huron $ 5,000 $ 116,296 $ 121,296
Kerman $ 5,000 $ 116,296 $ 121,296
Kingsburg $ 5,000 $ 116,296 $ 121,296
Mendota $ 5,000 $ 116,296 $ 121,296
Orange Cove $ 5,000 $ 116,296 $ 121,296
Parlier $ 5,000 $ 116,296 $ 121,296
Reedley $ 5,000 $ 116,296 $ 121,296
Sanger* $ 5,000 $ 116,296 $ 121,296
San Joaquin $ 5,000 $ 116,296 $ 121,296
Selma $ 5,000 $ 116,296 $ 121,296
Total $ 75,000 $ 1,894,931 $ 1,969,931
*Fresno and Sanger City Councils taking action on final recommendation to participate in the MJHE in April.
6th Cycle MJHE Cost Sharing Arrangement
The totals above are amounts not to exceed by participating jurisdiction within the proposed consultant contract, and assume that an initial study and negative declaration will be prepared for each jurisdiction. If during the course of the project it is determined that an addendum to the jurisdiction's general plan EIR is more appropriate, rather than an initial study and negative declaration, the not to exceed amount will be reduced accordingly.
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor & City Council
REPORT FROM: David Peters, City Engineer REVIEWED BY: AP AGENDA ITEM: Final Tract Map 6167 – Kings Estates Phase III ACTION REQUESTED: ___Ordinance ___Resolution ___Motion ____Receive/File
EXECUTIVE SUMMARY
The applicant, West Star Construction, a California Corporation, is proposing to develop a 64-lot residential subdivision the east side of 18th Avenue, north of Solig Avenue. Prior to beginning the construction of the project, the City Council must approve the final subdivision map and authorize the City Manager to enter into the subdivision agreement.
A tentative subdivision map was approved by the City of Kingsburg for this project in 2017. The applicant has complied with the conditions of approval of the tentative tract map and has paid development fees in accordance with City fee resolutions.
The subdivision is zoned residential, and complies the North Kingsburg Specific Plan and the City’s General Plan.
RECOMMENDED ACTION BY CITY COUNCIL
1. Adopt resolution No. 2022-023 approving the final map for Tract 6167 accepting on behalf of the public the streets and easements as offered on the map in accordance with the terms of the dedications.
2. Authorize the City Manager to execute the Subdivision Agreement on behalf of the City, subject to review as to form by the City Attorney.
POLICY ALTERNATIVE(S)
1. Council could choose to deny approval of the final map if findings could be made that the map is not in substantial conformance with the tentative map or the conditions of approval of the tentative map.
REASON FOR RECOMMENDATION/KEY METRIC
1. Provide Sustainable Growth.
Meeting Date: April 20, 2022
Agenda Item: 5.4
FINANCIAL INFORMATION
PRIOR ACTION/REVIEW
Tentative Tract Map 6167 was previously approved by the City Council.
BACKGROUND INFORMATION
The applicant, West Star Construction, a California Corporation, is proposing to develop a 64-lot residential subdivision the east side of 18th Avenue, north of Solig Avenue. Prior to beginning the construction of the project, the City Council must approve the final subdivision map and authorize the City Manager to enter into the subdivision agreement.
A tentative subdivision map was approved by the City of Kingsburg for this project in 2017. The applicant has complied with the conditions of approval of the approved tentative map. A subdivision agreement has been prepared for the development because the off-site improvements have not yet been constructed. The subdivision agreement requires that the applicant post bonds or instruments of security with the City in order to guarantee the construction of the improvements, which they have done. The subdivision agreement also sets forth the development fees that the applicant must pay the City prior to the delivery of the final map to the County Recorder.
The applicant has submitted the public improvement plans and the final map to the City, which have been reviewed and approved by the City Engineer. The Council must accept the final map unless they can site deficiencies in the final documents.
The applicant has paid development fees as described above and in accordance with City fee resolutions.
These fees will provide for review costs by the City and other capital improvement requirements.
The subdivision is zoned residential, and complies with the North Kingsburg Specific Plan and the City’s General Plan.
ATTACHED INFORMATION
1. Resolution No. 2022-023
2. Final Map 6167
3. Subdivision Agreement
FISCAL IMPACT:
1. Is There A Fiscal Impact? No
2. Is it Currently Budgeted? N/A
3. If Budgeted, Which Line? N/A
Recording Requested by: )
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City of Kingsburg )
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and When Recorded, Mail to: )
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City of Kingsburg )
1401 Draper Street )
Kingsburg, CA 93631 )
RESOLUTION NO. 2022-023
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF KINGSBURG
APPROVING TRACT 6167
WHEREAS, the Subdivision Agreement for Tract 6167, has been approved and executed by the developer, West Star Construction., a California Corporation and WHEREAS, all required City fees have been paid and bonds furnished to guarantee the construction and warranty of the required subdivision improvements; and WHEREAS, the presence of the City Engineer’s and Planning Commission Secretary’s signatures on the final tract map indicates that the final map substantially conforms to the tentative tract map previously approved by the City Council.
NOW, THEREFORE, BE IT RESOLVED:
That the City Council of the City of Kingsburg hereby approves the Final Map for Tract 6167, subject to final approval by the City Engineer, with any and all conditions which were imposed at the time of approval of the tentative map and;
BE IT FURTHER RESOLVED:
That the City Council of the City of Kingsburg hereby authorizes the City Manager to execute the Subdivision Agreement for Tract 6167, on behalf of the City, subject to review as to form by the City Attorney, and review as to content by the City Engineer. ******
I, Abigail Palsgaard, City Clerk of the City of Kingsburg, do hereby certify that the foregoing resolution was duly passed and adopted at a regular meeting of the Kingsburg City Council held on the 20th day of April 2022, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Abstain: Councilmembers:
Abigail Palsgaard, City Clerk
City of Kingsburg
Sudivision Agreement 6167 Page 1
CITY OF KINGSBURG
SUBDIVISION AGREEMENT
TRACT NO. 6167
THIS SUBDIVISION AGREEMENT ("AGREEMENT") is made and entered into this ____ day of _________, 2022, by and between K Prop, LLC, a California Limited Liability Company ("SUBDIVIDER"), and the City of Kingsburg, a Charter City ("CITY").
RECITALS
A. The SUBDIVIDER has presented to the CITY a final map of the proposed subdivision of certain real property located within the city limits of the CITY, and more particularly described in the Final Map and identified as Tract No. 6167 ("Subdivision"). The real property is to be developed pursuant to approved improvement plans for Tract 6167 by the City Engineer. SUBDIVIDER has requested that the CITY accept and approve the Final Map and the dedications delineated and shown on the Final Map for the use and purposes specified thereon and to otherwise approve the Final Map in order that the same may be recorded as required by law.
B. The CITY requires as a condition precedent to the acceptance and approval of the Final Map, the dedication of the streets and public improvements and easements as delineated and shown on the Final Map, and deems the same as necessary for the public use, and requires and deems as necessary for the public use that any and all streets, public improvements and easements delineated and shown on the Final Map shall be improved by the construction thereof and the installation of the improvements specified in this Agreement.
C. Certain public improvements are required to be made by SUBDIVIDER in accordance with the approved tentative map of the Subdivision and have not yet been completed Section 66462 of the California Government Code provides, as a condition precedent to the approval of the Final Map, that the City shall require the SUBDIVIDER to enter into an agreement to complete said public improvements.
D. Section 16 of the Kingsburg Municipal Code, requires the SUBDIVIDER to enter into an agreement with the CITY to perform and complete the work and matters as hereinafter described in this Agreement, in conformance with Section 16 inclusive of the Kingsburg Municipal Code, which Sections by this reference are incorporated into this Agreement made a part hereof.
NOW THEREFORE, it is hereby agreed as follows:
1. Improvements. SUBDIVIDER shall construct and install all public improvements in the Subdivision as identified in the approved improvement plans by the City Engineer and as specified on the Final Map in accordance with all of the requirements and standards as set forth in the approval or conditional approval of the tentative map of the Subdivision, the Kingsburg Municipal Code, all applicable laws, codes and regulations as determined by the City Engineer and the terms and conditions of this Agreement (collectively “Work”). In accordance with Section 16 of the Kingsburg Municipal Code, all of the Improvements shall be completed no later than twelve (12) months after the recording of the Final Map and commencement of construction.
The SUBDIVIDER shall notify the City Engineer in writing two weeks (14 calendar days) prior to the commencement of construction activities. The City Engineer will then document in writing
the beginning of the construction period. Request to extend the time for completion of the Improvements must be in written form and received by the CITY not less than thirty (30) days prior to expiration of said twelve (12) month period and shall include facts to support the extension of time for completion as required by the City Engineer. Only the City Council shall have the authority to extend such time period. The extension period shall not exceed three (3) months.
Within thirty (30) days after the SUBDIVIDER notifies the City Engineer that the required Work has been completed, the City Engineer shall inspect such Work and, if the Work has been performed in the required manner and in accordance with this Agreement, the Final Map, the Kingsburg Municipal Code and all other applicable laws, codes and regulations, the City Engineer shall advise the City Council that the public improvements are ready for acceptance by the CITY.
2. Inspection. The CITY shall inspect all work in accordance with Section 16 of the Kingsburg Municipal Code, including the SUBDIVIDER'S conformance with the CITY’s standard specifications and any and all applicable conditions, standards or requirements, including, without limitation, all conditions, standards or requirements identified at the preconstruction conference held prior to commencing the Work.
As part of the inspection process, SUBDIVIDER shall retain, at its sole cost and expense, a materials testing company to perform any testing or retesting of the Work as required by the City’s Department of Public Works and/or Building Official. The materials testing firm must be approved by the CITY before any testing or retesting begins. The City's Inspector shall designate the locations for compaction tests, and shall observe all testing procedures. In addition to street areas, compaction testing shall be performed in building pad areas.
The SUBDIVIDER’S Engineer shall check the grade of all streets prior to surfacing and shall, prior to surfacing, provide written confirmation to the City’s Department of Public Works that the street grades conform to the approved grades. In the case of asphalt concrete surfacing, the SUBDIVIDER’S Engineer shall, prior to surfacing, set grade stakes and shall be in attendance at the time all surfacing is performed.
SUBDIVIDER shall construct all required improvements in accordance with the applicable improvement plans and specifications. Where concrete curbs and gutters are required and where driveway approaches are not constructed at the time curbs and gutters are constructed, the curb and gutter shall be continuous.
CITY shall schedule a preliminary final inspection and a deficiency list shall be compiled and submitted to the SUBDIVIDER for correction. Upon completion of all corrections or additional work as outlined by the deficiency list, the SUBDIVIDER shall certify, in writing, that all corrections have been completed and request a final inspection. Upon finding that all items have been corrected and receipt of as-built improvement plans, the Subdivision shall be placed on the City Council agenda for acceptance.
The completion of corrections indicated by the deficiency list shall not relieve the SUBDIVIDER from the responsibility of correcting any deficiency not shown on the deficiency list that may be subsequently discovered. Should the CITY require payment of additional engineering and inspection fees and costs for improvements constructed after the stated date of completion, the SUBDIVIDER must pay said additional fees and costs prior to acceptance by the City Council of the improvements.
3. Costs and Fees. The SUBDIVIDER shall be responsible for all costs and expenses associated with the Work, including, without limitation, the costs identified in the Improvement Cost Estimate attached hereto and made a part hereof and identified as Exhibit "A" to this Agreement. SUBDIVIDER agrees to all amounts identified on Exhibit “A” and agrees to pay when due, all amounts identified on Exhibit “A”, including, without limitation, all CITY engineering and inspection fees.
4. Security. SUBDIVIDER agrees to furnish security, which complies with Section 66499 et. seq. of the California Government Code, and in such amounts as are required by the CITY, to guarantee the faithful performance of this Agreement including, without limitation, the construction of the Improvements and completion of the Work, and to guarantee payment to contractors, subcontractors, laborers, material men and other persons involved in the performance of the Work. In the sole discretion of the CITY and with the written authorization of the CITY, the sureties provided by the SUBDIVIDER may be released in whole or in part in the following manner:
(a) Faithful performance sureties, not in excess of ninety percent (90%) of the estimated costs of the individual items of the Improvements and Work, may be released, or the required surety amounts may be reduced, as work is satisfactorily completed and accepted by the CITY.
(b) Forty-five (45) days after recordation of the Notice of Completion for the Subdivision, the sureties securing the payment to contractors and subcontractors, and to persons furnishing labor, materials, or equipment, may be released if claims including, without limitation, stop notices, have not been filed.
(c) Twenty-Five percent (25%) of the total faithful performance surety, retained as the public improvement warranty, may be released one year after the Notice of Completion for the SUBDIVISION has been recorded. In the alternative, SUBDIVIDER shall provide CITY with new warranty security of not less than twenty-five percent (25%) of the Improvement Cost Estimate identified in Exhibit "A" hereto, which security shall have a term of one (1) year from the date of recordation of the Notice of Completion for the Subdivision.
In accordance with Section 16 of the Kingsburg Municipal Code, the SUBDIVIDER shall furnish, in writing, proof of adequate security deposit to all utility companies for the installation of electricity, gas, telephone, cable television and any other utility which charges are not part of the Improvement Cost Estimate set forth in Exhibit "A".
No final map shall be signed by the City Engineer or recorded until all improvement securities required by Section 16 of the Kingsburg Municipal Code and this Agreement have been received and approved by the CITY. The form of securities shall be one or the combination of forms as approved by the CITY.
5. Liability. As a condition precedent, and prior to commencement of the Work to be performed pursuant to this Agreement, SUBDIVIDER shall furnish the CITY with a certificate of insurance with a separate endorsement evidencing the following insurance coverages:
Commercial and general liability insurance with a combined single limit of not less than Two Million Dollars ($2,000,000.00) per occurrence. Such insurance shall include products/completed operations liability, owners and contractors protective blanket contractual
liability, personal injury liability, broad form property damage coverage and explosion, collapse and underground hazard coverage. The insurance shall name the CITY, its appointed and elected officials, officers, employees and agents and Peters Engineering Group as additional insureds; and be primary with respect to any insurance or self-insurance programs maintained by the CITY, and shall protect them from claims for personal injury, death or property damage suffered by third persons or by officers, employees, agents or independent contractors of the SUBDIVIDER, and arising out of or in any way connected with the Work which is the subject of this Agreement. Such policy or policies of insurance shall specifically provide that the CITY shall receive at least thirty (30) days prior to written notice of any cancellation of such policy or policies. Any such notice shall be sent to the attention of the City Engineer. Notwithstanding an inconsistent statement in the insurance policy or certificate or subsequent endorsement attached thereto, the CITY shall be insured or named as an additional insured covering the Work which is the subject of this Agreement, whether liability is attributable to the SUBDIVIDER or to the passive or active negligence of the CITY. The insurance shall be in effect on the date of this Agreement and shall expire no sooner than one year after the date of recordation of the Notice of Completion for the Subdivision. The cost of providing all required insurance shall be borne solely by the SUBDIVIDER.
All such insurance shall provide coverage for SUBDIVIDER’s obligations of indemnification as set forth in paragraph 6 of this Agreement.
The expiration or proposed cancellation of any such insurance polity or policies, for any reason whatsoever, shall constitute a material breach of this Agreement.
6. Indemnification. SUBDIVIDER hereby agrees to and shall protect, indemnify, defend and hold harmless the CITY and all officials, officers, agent, representatives and employees and Peters Engineering Group from and against any and all liability, loss, claims, expenses, or damages of whatsoever kind or character, including attorneys fees and costs of all types, in any way arising out of, or in any way related, directly or indirectly to the Work to be performed pursuant to this Agreement or the acts or omissions of the SUBDIVIDER, SUBDIVIDER'S independent contractors, employees, representatives, agents and invitees, and the passive or active negligent acts or omissions of the CITY or its officials, officers, employees, contractors, representatives, and agents while acting within the scope of their duties and regarding, in any way, the Work to be performed pursuant to this Agreement. These indemnification and hold harmless provisions shall be in full force and effect regardless of whether or not there is insurance policies covering the applicable damages, claims, or liability.
This indemnification shall be binding upon the SUBDIVIDER whether or not there are any allegations of fault, negligence or liability of the parties indemnified hereunder and shall survive the completion of construction of the Improvements and completion of the Work.
SUBDIVIDER agrees that the use of any and all public streets and improvements, which are part of the Subdivision, shall be, at all times prior to the final acceptance by the CITY, the sole and exclusive risk of the SUBDIVIDER.
7. Permits and Compliance. Should SUBDIVIDER be required to perform any Work within any public rights-of-way or easements, which are located beyond the Subdivision limits, including work located adjacent to said subdivision, SUBDIVIDER shall satisfy any and all requirements necessary to obtain an encroachment permit from the CITY or any other agency.
The SUBDIVIDER shall install underground, all gas main services, telephone, cable television, and electrical lines, and all electrical transformers, splice boxes, pull boxes, and other existing facilities providing service to within the limits of this Subdivision.
SUBDIVIDER agrees to make all financial arrangements with Pacific Gas and Electric, Southern California Gas, Comcast Cable, AT&T, and any other applicable utility company, to guarantee the installation of all utilities and services to the Subdivision. Copies of all agreements and written evidence of these financial arrangements shall be furnished to the CITY along with a composite underground utility plan prior to beginning construction of the Improvements related to the subdivision.
SUBDIVIDER shall make arrangements for the relocation of all overhead and underground public utility facilities along the frontages or that interfere with the construction of the Improvements or is required as a condition of approval. The SUBDIVIDER shall be responsible for the full cost of relocating such utilities and facilities.
The SUBDIVIDER shall repair any damage to public streets or other public property or improvements, which results from, or is incidental to, the construction of the Improvements, or in lieu of making such repairs, the SUBDIVIDER shall pay to the CITY the full cost of such repairs.
Building permits for individual lots of the Subdivision will be issued in accordance to
16.42.040 of the Municipal Code
In accordance with Section 16 of the Kingsburg Municipal Code, construction methods and materials for all Improvements shall conform to the standard plans and specifications of the CITY. Construction shall not commence until required improvements plans have been approved by the City Engineer and payment of all fees have been received by the CITY.
The Improvements shall be constructed in accordance with all applicable street, plumbing, building, electrical and zoning codes and any other applicable codes, rules or regulations of the CITY and the State of California.
The SUBDIVIDER shall require contractors and subcontractors to provide and maintain barricades and warning signs to protect and warn the public of construction hazards. Traffic control shall conform to a traffic control plan approved by the City Engineer. If in the opinion of the City Engineer, proper barricades and warning signs are not being provided, the Contractor will be required to immediately stop work until proper traffic control is provided and approved by the City Engineer.
The SUBDIVIDER shall require all contractors and subcontractors to conform to the applicable provisions of the California Occupational Safety and Health Act ("OSHA"). On site inspection of the work will be requested of OSHA officials and all work subject to this Agreement shall immediately stop if, in the opinion of the City Engineer, any such work is being performed in violation of OSHA, or when appropriate safety measures are not being utilized for the Work.
SUBDIVIDER shall be responsible for obtaining an NPDES permit for construction sites in excess of one acre, and shall develop a dust control plan and erosion control plan to mitigate soil migration from the Subdivision. SUBDIVIDER shall be responsible for soil and erosion control throughout the one-year warranty period called for in this Agreement. The SUBDIVIDER shall sweep the streets and alleys within the subdivision periodically throughout the one-year warranty period, at a minimum frequency of once per month.
The SUBDIVIDER and its contractors and subcontractors shall pay for any materials, provisions and other supplies used in, upon, for, or about the performance of the Work, and for any and all work or labor associated therewith and for all amounts due under the worker's compensation and the unemployment insurance acts and all other applicable laws or regulations of the State of California or the United States with respect to such work or labor, including, without limitation, as required by Section 3200 of the California Labor Code and Section 4200 of the California Government Code.
The SUBDIVIDER shall provide and plant one street tree per lot at a location approved by the City’s Building Official. The trees shall be planted at the time the dwelling unit on the lot is occupied and shall be selected from a street tree list provided by the CITY. Trees shall be furnished with root barriers and watered via a City approved irrigation system for each lot.
The SUBDIVIDER shall install streetlights in the Subdivision. A streetlight plan shall be submitted to the City Engineer for review and approval. Streetlights shall be furnished and installed in accordance with CITY, PG&E and Caltrans’ standards. The street lighting system shall become the property of the CITY upon completion and acceptance of the work, without further consideration to SUBDIVIDER. SUBDIVIDER’S contract with PG&E (“PG&E” Contract”) for the furnishing of electrical power to the Subdivision shall specifically state that all streetlights shall become the property of the City. Each street light shall be furnished with an electrical pull box and grounding rod. The SUBDIVIDER shall number the street light poles in accordance with PG&E requirements. The PG&E Contract shall identify a maintenance rate schedule for the streetlights of LS2C. All street light boxes shall be equipped with an approved anti-theft device.
Fencing improvements shall be constructed in accordance with City Standards, with appropriate fencing offsets to be provided for sanitation and garbage collection service to each lot, including allowance for approved number and/or style of garbage cans, green waste, and recycling containers. Fencing improvements shall be constructed in such a manner as to eliminate any dirt strip between the fence and the adjacent alley. Where framing improvements face the alley, the SUBDIVIDER shall construct a concrete mow strip in accordance with City standards between the fence and the alley paving.
The SUBDIVIDER shall furnish to the CITY a set of reproducible as-built plans for all street improvements (“Street Plans”). The Street Plans shall be original ink on vellum or mylar media.
The Street Plans shall include the location of all underground utilities, finished grades for all curb returns and building pads. The SUBDIVIDER'S engineer shall provide a copy of the tract, in digitized format (AutoCAD 2020 or equivalent format as approved by the City Engineer) to the City prior to final acceptance of the Improvements and Work by the City.
Prior to commencement of any work within the right-of-way not included in the improvement plans, or any work performed within an existing maintained road, a permit must be obtained from the City Public Works Department. Said permit may, amongst other things, specify alternate schedules for completion of the work within existing rights-of-way. The purpose of these alternate schedules shall be to minimize the impacts on adjacent residents and traffic during the construction period. The conditions of the permit may require the contractor to provide written notification to the adjacent property owners about the work, including a listing of emergency telephone numbers.
In the event an extension is granted to the time within which all work is to be completed on this subdivision as provided herein, the SUBDIVIDER hereby agrees that he will comply with all the applicable improvement standards in effect at the time of said extension.
The grading on the lots shall conform to the grades shown on the Grading Plan and Improvement Plans. SUBDIVIDER shall hold the CITY harmless from any damages that may result from flooding of any structures on the finished lots.
Prior to the acceptance of the work and release of the security on this tract, the SUBDIVIDER shall provide to the CITY a certification from his engineer that all work performed within this tract conforms with the approved plans and the recommendations contained in the Project Geotechnical/Soils Report. A certification shall also be furnished by the SUBDIVIDER’S Engineer that all utility trenches have been uniformly compacted to the percentages specified in the City Standards.
The SUBDIVIDER shall cause to be placed by authorized persons all survey monuments and lot corners as shown on the final map prior to acceptance of the subdivision by the CITY. A deposit shall be provided to the City to guarantee this installation.
Prior to the acceptance of the Work and release of the security, the SUBDIVIDER shall provide to the CITY a certification from its engineer that all work and the construction and installation of all Improvements conform with the approved plans for the Subdivision and the recommendations contained in the Preliminary Soils Reports. A certification shall also be furnished by the SUBDIVIDER’S engineer that all utility trenches have been uniformly compacted to the percentages specified in the City Standards.
8. Other Conditions. The SUBDIVIDER shall annex the Subdivision to the City’s Lighting and Landscape Maintenance District for the provision of maintenance of the street lights and landscaping within the public right-of-way. The SUBDIVIDER shall provide a signed and notarized covenant and consent for annexation of the Subdivision to the Lighting and Landscape Maintenance District. The SUBDIVIDER shall notify every potential buyer of lots within the Subdivision that the Subdivision is part of a Lighting and Landscape Maintenance District. The SUBDIVIDER shall provide the City with a signed copy of such notice indicating acceptance of the notice by the buyer.
9. Scheduling. It shall be the responsibility of the SUBDIVIDER to coordinate all Work performed by its contractors and subcontractors, such as scheduling the sequence of operations and the determination of liability of one contractor or subcontractor operation delays another. In no case shall representatives of the CITY be placed in the position of making decisions that are the responsibility of the SUBDIVIDER. It shall further be the responsibility of the SUBDIVIDER to give the City Engineer written notice not less than fourteen (14) calendar days in advance of the actual date on which work is to be started. Failure on the part of the SUBDIVIDER to notify the City Engineer may cause delay for which the SUBDIVIDER shall be solely responsible.
10. Soil and Dust Control Provisions. The SUBDIVIDER is responsible for arrangement for and payment of all CITY required soil tests at locations as determined by the City Engineer. Payment for said tests shall be made directly by the SUBDIVIDER to the certified testing firm of the SUBDIVIDER'S choice.
Adequate dust control shall be maintained by the SUBDIVIDER on all streets and areas, including, without limitation, undeveloped lots within the Subdivision and all streets outside of the Subdivision, from the time Work is first commenced until all work is completed. "Adequate dust control" as used herein shall mean the sprinkling of the streets with water or approved dust palliative with sufficient frequency to prevent the scattering of dust by wind or the activity of vehicles and equipment onto any street area or private property adjacent to the Subdivision.
Whenever, in the opinion of the City Engineer, adequate dust control is not being maintained on any street or streets, or other areas of the Subdivision, the City Engineer shall give notice to the SUBDIVIDER to comply with these provisions, or, at the election of the City Engineer, notice may be mailed to the SUBDIVIDER at his address on file with the City Engineer. If, within twenty-four (24) hours after personal service or within forty-eight (48) hours after mailing of notice, the SUBDIVIDER has not commenced to maintain adequate dust control or at any time thereafter fails to maintain adequate dust control, the City Engineer may, without further notice of any kind, cause any street or streets to be sprinkled with water or an approved dust palliative as may be deemed necessary by the City Engineer to eliminate the scattering of dust. Such dust control shall be performed by equipment and personal of the CITY or by contract as the City Engineer shall determine, and the SUBDIVIDER agrees to pay to CITY, upon receipt of the billing therefore, the entire cost to the CITY of such dust control.
When the surfacing on any existing street is disturbed, SUBDIVIDER shall immediately replace the surfacing with temporary surfacing and permanently pave the existing street within fourteen (14) calendar days thereafter. All streets shall be maintained in a safe and passable condition at all times between the commencement of construction of Improvements and final completion thereof.
11. Reimbursement. If the City Municipal Code provides SUBDIVIDER with the right to receive cash reimbursement or Development Impact Fee credit because of the construction of certain Improvements or the oversizing thereof, SUBDIVIDER must request payment of the cash reimbursement or preparation of a reimbursement agreement, whichever is applicable, or the Development Impact Fee credit. Such request must be made in writing and received by the City Engineer prior to the date of final acceptance of all Improvements by Kingsburg City Council. SUBDIVIDER agrees that should it fail to make such written request by the date identified herein, SUBDIVIDER forever waives it’s right to request and receive any reimbursement, reimbursement agreement or Development Impact Fee credit.
All such requests for reimbursement shall be prepared and submitted in accordance with City requirements and include the following:
i. One complete copy of all awarded bid for Work that is the subject of SUBDIVIDER’s reimbursement request, together with a copy of any other unsuccessful bids the SUBDIVIDER received (the SUBDIVIDER is not required to obtain more than one bid) and documentation sufficient, as determined by the CITY, to demonstrate that the unit costs for both reimbursable and nonreimbursable work items of similar scope are identical; ii. Completed "Requested Reimbursement Schedule";
iii. Completed, reproducible as-built drawings;
iv. Certification, signed by the SUBDIVIDER, its engineer, and its contractor attesting that the Work and Improvements are complete and that no future reimbursement claims will be forthcoming; and
v. If the awarded bid was significantly higher than the customary unit cost for a specific item or at the request of the City, the developer shall submit a written narrative explaining why the awarded bid was used and why the SUBDIVIDER should be reimbursed at a rate higher than the customary rate.
Tract 6167 includes the following improvements that will be eligible for reimbursement after construction of the improvements and dedication of property on which those improvements have been constructed.
i. Park infrastructure improvements as approved by the City Engineer.
12. Prevailing Wage Laws, Rules and Regulations. SUBDIVIDER shall comply with and shall require all contractors to comply with all prevailing wage laws, rules and regulations applicable to the Subdivision, the Work and the Improvements. Unless otherwise advised in writing by the CITY, SUBDIVIDER shall be solely responsible for making any and all decisions regarding the payment of prevailing wages for any portion or aspect of the Subdivision, Work or Improvements, including, without limitation, any form of reimbursement by the CITY to the SUBDIVIDER or any contractor. Further, SUBDIVIDER will be solely responsible for the payment of any claims, fines, penalties, reimbursements, payments or any other actions that may be initiated against SUBDIVIDER, any contractor, or the CITY as a result of failure to pay prevailing wages.
SUBDIVIDER shall defend, indemnify and hold harmless the CITY, its officials, officers, employees, representatives, agents, attorneys, and Peters Engineering Group from and against any and all claims, damages, losses, judgments, liabilities, expenses and other costs, including, without limitation, litigation costs and attorney’s fees arising out of, resulting from or in any way in connection with any violation or claim of violation of any prevailing wage law, rule or regulation applicable to any portion or aspect of the Subdivision, the Work or the Improvements.
SUBDIVIDER’s obligation to defend, indemnify and hold the CITY harmless specifically includes, but is not limited to, any suit or administrative action against the CITY which claims a violation of any prevailing wage law, rule or regulation applicable to any portion or aspect of the Subdivision, Work or Improvements.
SUBDIVIDER’s obligations to defend, indemnify and hold the CITY, its officials, officers, employees, representatives, agents, attorneys, and Peters Engineering Group harmless as set forth herein, shall include, but shall not be limited to, staff time, copying costs, court costs, the costs of any judgments or awards against the CITY for damages, losses, litigation costs or attorney fees arising out of any violation or claim of violation of any prevailing wage law, rule or regulation applicable to any portion or aspect of the Subdivision, Work or Improvements and costs of any settlement representing damages, litigation costs and attorney’s fees to be paid to other parties arising out of any such proceeding or suit.
The CITY may, at any time, require the SUBDIVIDER to reimburse the CITY for costs that have been, or which the CITY reasonably anticipates will be, incurred by the CITY during the course of any action. SUBDIVIDER shall reimburse the CITY within thirty (30) days of receipt of an itemized written invoice from the CITY. Failure of the SUBDIVIDER to timely reimburse the CITY shall be considered a material breach of this Agreement. All of the provisions of this paragraph 12 shall survive the completion of construction of the Improvements and completion of the Work.
13. Sole and Only Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the matters set
EXHIBIT "A"
IMPROVEMENT COST ESTIMATE
Estimated construction costs used in this Agreement are increased for projected inflation computed to the estimated mid-point of construction.
ESTIMATED
CONSTRUCTION COST
Site Preparation
Construction of all rough grading, fencing, and wall improvements as shown on the approved improvement plans and in accordance with City Standards and Specifications. $ 388,941
Sanitary Sewer System
Construction of all sanitary sewerage facilities as shown on the approved improvement plans in accordance with City Standards and Specifications. $ 108,575
Storm Drainage System
Construction of underground cross drains, storm sewerage conductor, $ 247,050 and disposal facilities as shown on the approved improvement plan in accordance with City Standards and Specifications.
Water System
Install all water mains, hydrants, services and appurtenances as shown on the approved Improvement Plans in accordance with City Standards and Specifications. $ 344,117
Dry Utilities
Install all gas, electric, telephone, cable, street lights, and other dry utilities as shown on the approved Improvement Plans in accordance with City and Utility Standards and Specifications. $ 330,000 Street & Alley Construction
Construct Type "B" asphalt concrete surfacing, Class 2
aggregate base, curb and gutter, sidewalk, wheelchair ramps, drive approaches, and valley gutter as shown on the approved
Improvement Plans in accordance with City Standards and Specifications. $ 1,245,327
Total Estimate Construction Costs = $ 2,664,010
SECURITY REQUIREMENTS
Performance $ 2,664,010
Labor and Material $ 1,332,005
Warranty $ 666,003
Monumentation Security $ 10,000
Subdivision Fee Schedule.
Fees are subject to change based on current fee schedule at the time of fee payment.
Charges payable prior to time of approval of Final Map and acceptance of Subdivision Agreement by the City Council. Fees Based on 40.50 Acres / 64 SFU.
Final Tract Map Fee ($1,200 + $25/lot) $ 2,800.00
Plan Check & Inspection Fee 1 $ 79,920.00
Storm Drainage Fees ($3,656/Acre) $ 148,068.00
Capital Facilities Fees* ($11,018.25/SFU) $ 705,168.00
Rec Area Acquisition & Improvement* ($1,428/SFU) $ 91,392.00 Sewer Connection Fee* ($/1,141SFU) $ 73,024.00
SUBTOTAL $ 1,100,372.00
Less Previously Paid Fees $ 37,280.00
Less Fees Requested for Deferral $ 869,584.00
BALANCE DUE $ 193,508.00
Notes:
1 Fee shown is an additional deposit based upon an estimate. Actual fee to be calculated after subdivision is constructed and prior to acceptance by City Council. Surplus fee deposit will be refunded. In the event initial deposit does not cover the calculated fee, an additional deposit will be required prior to acceptance of the subdivision improvements. * Fee’s may be deferred until time of issuance of Building Permit
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor North & City Council
REPORT FROM: David Peters, City Engineer REVIEWED BY:AP AGENDA ITEM: Avenue 396 Reimbursement Agreement
ACTION REQUESTED: ___Ordinance ____Resolution √ Motion Receive/File
EXECUTIVE SUMMARY
In 2018, the City of Kingsburg and the County of Tulare entered into a Joint Planning and Development Agreement related to the 50-acre Summerlyn (Hash) residential subdivision located in the northwest corner of Road 16 and Avenue 396. The project’s conditions of approval require the developer, Presidio JJR Summerlyn 123, LLC, to reconstruct Avenue 396 along its southern frontage.
The City and County desired to extend the road reconstruction work westerly to 18th Avenue due to the poor condition of the roadway and potential for increased traffic with projects being developed in the area.
The County’s contribution to the expanded roadway reconstruction work was to install a new crosswalk and rectangular rapid flashing beacons near the Safarjian and Hank Hash baseball fields; this work has been completed. The City’s contribution is to reimburse the developer for roadway reconstruction work outside the scope of the requirements of the conditions of approval in the amount of $212,000. Additionally, the City desired to complete utility upgrades within the reconstructed roadway prior to repaving the road. These utility upgrades were performed by the developer’s contractor in the amount of $20,840.30. The total reimbursement due to the developer is $232,840.30.
A reimbursement agreement has been prepared between the City of Kingsburg and San Joaquin Valley Homes detailing the work performed and reimbursement due to the developer by the City.
The agreement has been executed by the developer.
RECOMMENDED ACTION BY CITY COUNCIL
1. Approve the Reimbursement Agreement between the City of Kingsburg and Presidio JJR Summerlyn 123, LLC for reconstruction of Avenue 396 beyond the scope of work required by the project conditions of approval and authorize the City Manager to sign the agreement on behalf of the City.
POLICY ALTERNATIVE(S)
1. The Council could choose to not approve the reimbursement agreement.
REASON FOR RECOMMENDATION/KEY METRIC
1. Promote Sustainable Growth
Meeting Date: 4/20/2022
Agenda Item: 5.5
FINANCIAL INFORMATION
FINANCIAL SUMMARY
Funds have been allocated for this reimbursement in the FY21-22 Budget.
PRIOR ACTION/REVIEW
None.
BACKGROUND INFORMATION
See Executive Summary.
BACKGROUND INFORMATION
1. Reimbursement Agreement
FISCAL IMPACT:
1. Is There A Fiscal Impact? Yes
2. Is it Currently Budgeted? Yes
3. If Budgeted, Which Line? 210-9601-549-5761
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor North & City Council
REPORT FROM: Alma Colado, Finance Director REVIEWED BY: AP AGENDA ITEM: 2020-2021 Financial Statements
ACTION REQUESTED: ___Ordinance ___Resolution _√_ Motion ____Receive/File
EXECUTIVE SUMMARY
The City of Kingsburg’s Financial Statements for Fiscal Year ended June 30, 2021 have been audited by an independent accounting firm and an Unqualified Opinion (clean opinion) has been issued. Fausto Hinojosa and Osvaldo Gutierrez from Price Paige & Company will be presenting our audited financial statements for the fiscal year ended 06/30/2021.
Highlights include:
• General Fund revenues exceeded expenditures by $1,144,394 (not including transfers in/out). • Measure E Fund revenues exceeded expenditures by $759,405. • The Ambulance Fund had an operational increase of $505,847. • Water Fund revenues exceeded expense by $117,067.
• Disposal Fund expenditures exceeded revenues by $235,598.
Included in the packet is a five year major fund comparison of revenues and expenses. This information provides a long-term financial summary and fund performance trends.
RECOMMENDED ACTION BY CITY COUNCIL
1. Accept the financial statements for year ended June 30, 2021.
POLICY ALTERNATIVE(S)
1. NA
REASON FOR RECOMMENDATION/KEY METRIC
1. Ensure Financial Stability
FINANCIAL INFORMATION
FINANCIAL SUMMARY
None related to the City budget.
ATTACHED INFORMATION
1. Financial Statements
2. 5 year major fund revenue/expenditure summary
Meeting Date: 04/20/2022
Agenda Item: 6.1
FISCAL IMPACT:
1. Is There A Fiscal Impact? Yes
2. Is it Currently Budgeted? N/A
3. If Budgeted, Which Line? N/A
CITY OF KINGSBURG
CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2021
Prepared by
Finance Department
CITY OF KINGSBURG
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................i GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................. vii Organizational Chart ................................................................................................................................. viii List of Elected and Appointed Officials ........................................................................................................ ix
FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................... 1 Management’s Discussion and Analysis ..................................................................................................... 3 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position............................................................................................................. 14 Statement of Activities .................................................................................................................. 15 Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................................ 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position........................................................................................................... 17 Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds .................................................................................... 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities .............................................................................................................. 19 Statement of Net Position – Proprietary Funds ............................................................................ 20 Statement of Revenues, Expenses and Changes in
Fund Net Position – Proprietary Funds ...................................................................................... 21 Statement of Cash Flows – Proprietary Funds ............................................................................ 22 Statement of Fiduciary Net Position – Fiduciary Funds ............................................................... 24 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................................ 25 Notes to the Basic Financial Statements ............................................................................................ 28 Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – General Fund ....................................................................... 60 Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Local Transportation Funds ................................................ 61 Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Measure E Fund .................................................................. 62
CITY OF KINGSBURG
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
TABLE OF CONTENTS
(Continued)
Page
Required Supplementary Information: (Continued)
Proportionate Share of Net Pension Liability ...................................................................................... 63 Schedule of Contributions ................................................................................................................... 64 Notes to the Required Supplementary Information ............................................................................ 65 Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds ............................................................ 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................................... 72 Combining Balance Sheet – Nonmajor Special Revenue Funds ....................................................... 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds ...................................................................... 75 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Nonmajor Special Revenue Funds:
Measure C Fund ........................................................................................................................... 77 Gas Tax Fund ............................................................................................................................... 78 Senior Center Fund ....................................................................................................................... 79 COPS Grant Fund ......................................................................................................................... 80 ACT Task Force Grant Fund ......................................................................................................... 81 School Resource Officer Fund ...................................................................................................... 82 Combining Balance Sheet – Nonmajor Debt Service Funds .............................................................. 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Debt Service Funds ............................................................................. 84 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Nonmajor Debt Service Fund – Assessment District Fund ............................. 85 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Major Debt Service Fund – Kingsburg Joint Powers Authority Fund .............. 86 Combining Balance Sheet – Nonmajor Capital Projects Funds ......................................................... 87 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ........................................................................ 88 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Nonmajor Capital Projects Funds:
Street Projects Fund ..................................................................................................................... 89 Sewer Connection Fund ............................................................................................................... 90 Storm Drain Fund .......................................................................................................................... 91 Parks and Recreation Fund .......................................................................................................... 92 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Major Capital Projects Fund:
Capital Facilities Fund .................................................................................................................. 93 Linnea Villas Public Project Fund ................................................................................................. 94
CITY OF KINGSBURG
ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021
TABLE OF CONTENTS
(Continued)
Page
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ......................................................................... 99 Changes in Net Position – Last Ten Fiscal Years ............................................................................ 100 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................... 102 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................. 103 Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................................................................................................................... 104 Assessed Value of Taxable Property – Last Five Fiscal Years ........................................................ 105 Tax Revenues by Source – Governmental Activities – Last Ten Fiscal Years ................................ 106 Direct and Overlapping Property Tax Rates – Last Five Fiscal Years ............................................. 107 Principal Property Taxpayers – Current Year and Nine Years Ago ................................................. 108 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 109 Debt Capacity:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .......................................................... 110 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................ 111 Direct and Overlapping Governmental Activities Debt ..................................................................... 112 Legal Debt Margin Information ......................................................................................................... 113 Demographic and Economic Information:
Demographic and Economic Statistics – Last Five Fiscal Years ..................................................... 114 Principal Employers – Current Year and Nine Years Ago ................................................................ 115 Operating Information:
Full-Time Equivalent Employees by Function – Last Ten Fiscal Years ........................................... 116 Operating Indicators by Function – Last Ten Fiscal Years ............................................................... 117 Capital Asset Statistics by Function – Last Ten Fiscal Years .......................................................... 118
INTRODUCTORY SECTION
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i
ii
iii
iv
v
vi
vii
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viii
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ix
CITY OF KINGSBURG
LIST OF ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2021
Elected Officials
Mayor Laura North
Mayor Pro Tem Vince Palomar
Council Member Michelle Roman
Council Member Jewel Hurtado
Council Member Brandon Pursell Jr.
Appointed Officials
City Manager Alexander J. Henderson
City Attorney Michael Noland
City Clerk Abigail Palsgaard
Director of Administrative Services Christina Windover
Police Chief Neil Dadian
Fire Chief Daniel Perkins
Building Official Edward Jakubowski
Finance Director/City Treasurer Alma Colado
THIS PAGE IS LEFT BLANK INTENTIONALLY.
FINANCIAL SECTION
THIS PAGE IS LEFT BLANK INTENTIONALLY.
1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Kingsburg, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Kingsburg, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
2 Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules, the proportionate share of net pension liability, and the schedule of contributions as listed on the table of contents to be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and the related budgetary comparison schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and the related budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Clovis, California
February 28, 2022
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
3 The management of the City of Kingsburg is pleased to present the following discussion and analysis that provides an overview of the financial position and activities of the City of Kingsburg as of and for the year ended June 30, 2021. The discussion should be read in conjunction with the financial statements and accompanying notes to the basic financial statements which follow this section.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements which consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to the basic financial statements. The report also includes supplementary information intended to furnish additional detail to support the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, parks and community services, public safety, public works, highways and streets, and planning and community development. The business-type activities of the City include Water, Disposal and Ambulance/Fire.
The government-wide financial statements include the Kingsburg Joint Powers Authority. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. The Joint Powers Authority, although legally separate, functions for all practical purposes as a department of the City, and therefore has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 14-15 of this report.
Fund Financial Statements
Fund Financial Statements provide more detailed information about the City’s most significant funds, not the City as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Some funds are required to be established by State Law or by bond covenants. Management establishes other funds to control and manage money for particular purposes or to show the City is meeting legal responsibilities for using certain taxes, grants, and other money.
All the funds of the City can be classified as governmental, proprietary and fiduciary. 4 Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. Such information is useful in evaluating a governments near-term financing requirement.
Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide reconciliation between governmental funds and governmental activities. This reconciliation explains the relationship (or differences) between the fund statements and the government-wide statements.
The City of Kingsburg maintains seventeen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental statement of revenues, expenditures and changes in fund balances for the General, Local Transportation Funds, Measure E, Kingsburg Joint Powers Authority, Capital Facilities, and Linnea Villas funds which are considered to be major funds. Data from the other funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for the City’s funds. A budgetary comparison schedule has been provided for the General Fund, Local Transportation Funds, and Measure E to demonstrate compliance to this budget and can be found on pages 60-62.
The governmental fund financial statements can be found on pages 16-19 of this report.
Proprietary funds. The City has three enterprise funds, Water, Disposal, and Ambulance/Fire, which are used to account for operations that financed and operated in a manner similar to private business enterprises.
Enterprise funds are used to report the same functions represented as business-type activities in the government-wide financial statements. The City utilizes enterprise funds to account for those activities that are supported primarily by user charges to external users. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Disposal, and Ambulance/Fire, all of which are major funds. The basic proprietary fund financial statements can be found on pages 20-23 of this report.
Fiduciary funds. The City uses fiduciary funds to account for resources held for the benefits of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the City cannot use these funds to finance its operations.
The basic fiduciary fund financial statements can be found on pages 24-25 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the financial statements. The notes describe the nature of the City’s operations and significant accounting policies and provide clarification regarding unique financial information. The notes to the basic financial basic statements can be found on pages 28-58 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on pages 60-65 of this report.
The statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. Statements and schedules can be found on pages 68-94 of this report.
5 Financial Highlights
Government-wide financial highlights for the fiscal year ended June 30, 2021:
I. Statement of Net Position
Condensed Statement of Net Position
2021 2020
Assets 56,054,201 $ 50,759,917 $ Government-wide total assets at fiscal year ending June 30, 2021 increased by $5,294,284 which is 10.4% higher than fiscal year ending June 30, 2020.
Liabilities 15,131,741 $ 15,035,659 $ Government-wide total liabilities at fiscal year ending June 30, 2021 increased by $96,082 which is 0.6% more than fiscal year ending June 30, 2020.
Deferred
Outflows/Inflows of
Resources
$ 2,641,017 1,945,570 $ Net of Deferred Outflows/Inflows of Resources - Result of contribution to pension plan in current fiscal year, pension deferrals and loss of refunding of debt.
Net Position 42,868,030 $ 38,365,275 $ The Net Position (assets less liabilities) at fiscal year ending June 30, 2021 increased by $4,502,755 which is 11.7% more than fiscal year ending June 30, 2020. The net position includes $1,945,570 of deferred outflows/inflows of resources.
Statement of Net Position (Detail)
2021 2020 2021 2020 2021 2020
Assets:
Current and other assets 19,694,066 $ 16,974,241 1,575,451 $ 3,155,091 $ 21,269,517 $ 20,129,332 $ Capital assets 21,378,095 19,570,670 13,406,589 11,059,915 34,784,684 30,630,585 Total assets 41,072,161 36,544,911 14,982,040 14,215,006 56,054,201 50,759,917 Deferred Outflows of Resources:
Total deferred outflows of resources 1,960,339 2,470,618 623,238 516,996 2,583,577 2,987,614 Liabilities:
Current and other liabilities 4, 3,922,861 408,495 3,359,666 3,406,646 7,768,161 7,329,507 Long-term liabilities 5,518,214 6,444,675 1,845,366 1,261,477 7,363,580 7,706,152 Total liabilities 9,926,709 10,367,536 5,205,032 4,668,123 15,131,741 15,035,659 Deferred Inflows of Resources:
Total deferred inflows of resources 478,053 265,137 159,954 81,460 638,007 346,597 Net Position:
Net investment in capital assets 16,971,072 19,058,680 11,355,099 6,482,788 30,413,779 23,453,860 Restricted 12,661,892 11,157,339 - - 12,661,892 11,157,339 Unrestricted 907,166 254,445 (1,114,807) 3,499,631 (207,641) 3,754,076 Total net position 32,627,738 $ 28,382,856 $ 10,240,292 $ 9,982,419 $ 42,868,030 $ 38,365,275 $ Governmental Activities Business-Type Activities Total
Of the total net position, $30,413,779 or 71% is the City’s investment in capital assets (e.g., land, buildings and improvements, machinery and equipment and infrastructure) less any related debt used to acquire those assets that is still outstanding.
6 The Statement of Net Position reflects a net effect of $1,945,570 a separate section for deferred outflows of resources (asset) and a deferred inflow of resources (liability) for other pension related deferrals, and loss of refunding of debt.
GASB Statement No. 68 was issued to improve accounting and financial reporting by state and local governments for pensions. The net pension liability amount is $7,363,580 and is described in Note 10.
Almost all the City’s long-term liabilities relate to the acquisition of capital assets. These capital assets are utilized to provide services to citizens and are not available for future spending. The repayment of the debt on these assets must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
Restricted net position amounts to $12,661,892 or 30% of the total. Restricted net position represents resources that are subject to external restriction imposed by the State on how they may be used.
Unrestricted net position represents resources which may be used to meet the City’s ongoing commitments to citizens and creditors. Government activities unrestricted net position is $907,166 while the business-type activities account for a deficit of $1,114,807. The City can only use this amount to finance the continuing operations of the Water, Disposal, and Ambulance/Fire.
Governmental Activities. Governmental activities account for $32,627,738 or 76% of the total governmentwide net position. This is an increase of $4,244,882 or 15% over the June 30, 2020 governmental net position ending balance.
Changes in Net Position. Below is a current year recap of the changes in net position. The full statement of Activities can be found on page 15.
2021 2020
Operating revenues $ 22,116,975 23,088,092 $
Operating expenses 17,289,072 18,520,968
Increase in net position 4,827,903 4,567,124
Prior Period Adjustment - (64,369)
Net position, beginning of year 33,537,372 38,365,275
Net position, end of year $ 38,365,275 42,868,030 $
Statement of Revenues, Expenses and Change in Net Position (Condensed) 7 Changes in Net Position (Detail)
2021 2020 2021 2020 2021 2020
REVENUES
Program revenues:
Charges for services 2,612,979 $ 3,493,622 $ 7,450,737 $ 7,114,028 $ 10,063,716 $ 10,607,650 $ Operating grants 2,592,719 1,763,066 2,362,855 1,324,235 4,955,574 3,087,301 Capital grants 307,350 439,572 - 102,078 307,350 541,650 General revenues:
Property taxes 1,780,984 1,665,338 - - 1,780,984 1,665,338 Sales and use taxes 3,590,893 3,092,695 - - 3,590,893 3,092,695 Other taxes 2,001,006 1,961,034 - - 2,001,006 1,961,034 Rent, interest and other 367,586 1,054,262 20,983 107,045 388,569 1,161,307 Total revenues 13,469,589 13,253,517 9,834,575 8,647,386 23,088,092 22,116,975
EXPENSES
General government 715,354 2,054,881 - - 715,354 2,054,881 Parks and community services 767,773 494,862 - - 767,773 494,862 Public safety 4,472,718 4,665,132 - - 4,472,718 4,665,132 Public works 723,805 950,088 - - 723,805 950,088
Highway and streets 1,254,211 535,748 - - 1,254,211 535,748 Planning and community 650,586 426,503 - - 650,586 426,503 Interest 124,188 141,335 - - 124,188 141,335
Water - - 2,349,264 1,939,622 2,349,264 1,939,622
Disposal - - 2,161,473 1,967,168 2,161,473 1,967,168
Ambulance/fire - - 5,301,596 4,113,733 5,301,596 4,113,733 Total expenses 9,268,549 8,708,635 9,812,333 8,020,523 18,520,968 17,289,072 Increase (decrease) in net position
before transfers 4,201,040 4,544,882 22,242 626,863 4,567,124 4,827,903 Transfers (300,000) (500,000) 300,000 500,000 - -
Increase (decrease) in net position 3,701,040 4,244,882 322,242 1,126,863 4,567,124 4,827,903 Net Position - beginning of year 28,382,856 24,681,816 9,982,419 8,855,556 38,365,275 33,537,372 Prior Period Adjustments - - (64,369) - (64,369) -
Net Position - end of year 32,627,738 $ 28,382,856 $ 10,240,292 $ 9,982,419 $ 42,868,030 $ 38,365,275 $ Governmental Activities Business-Type Activities Total
Total governmental revenues for the year were $13,253,517 with charges for services comprising of 20% of the total revenue. Taxes, which include property, sales and other taxes, account for $7,372,883 or 56% of the City’s governmental activities revenue.
Total governmental expenses for the year were $8,708,635. Public Safety accounts for $4,472,718 or 51% of the total governmental activities expenses, followed by Highways and Streets, Parks and Community Services, Public Works, General Government, and Planning and Community with $1,254,211, $767,773, $723,805, $715,354, $650,586 or 14%, 9%, 8%, 8%, 7% respectively. 8 Revenues by Source - Governmental Activities
Cha rgesfor Services
20%
Ope ra ting Grants
20%
Ca pi tal Grants
Property Taxes 2%
13%
Sales Taxes andUses
Taxes
27%
Othe r Taxes
15%
Rents,Interest&
Other
3%
Program revenues which include charges for services, grant revenues and developer capital contributions account for $5,513,048 or approximately 42% of the total governmental activity revenue. The amounts necessary to fully fund the governmental activity programs are made up by “general” revenues such as taxes, interest and developer fees.
Business-Type Activities
Business-type activities account for $10,240,292 or 24% of the total government-wide net position. This is a increase of $257,873 or 3% compared to June 30, 2020. Charges for current services account for $7,450,737 or 76% of the total business-type activity revenue (excluding transfers). 9 Revenues by Source - Business-Type Activities
Cha rgesfor Services
75.76%
Opera ting Grants &
Contributions
24.03%
Investment Ea rnings
0.21%
Operating Expenses and Operating Revenues-Business Type Activities $2,380,274 $1,925,875 $1,156,445
$2,263,207
$2,161,473
$3,249,965
$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Water Disposal Ambulance/Fire
Operating Revenues Operating Expenses
10 In a review of the chart illustrating Operating Expenses and Operating Revenues, it can be noted that operating revenues exceeded operating expenses in Water by $117,067. Disposal operating expense exceeded revenue by $235,598 and Ambulance/Fire expenses exceeded operating revenues by approximately $2,093,520 for fiscal year ending June 30, 2021.
Financial Analysis
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The ending fund balance for all governmental funds is $18,149,235 which is an increase of $2,012,312 or 12% when compared to the prior year balance (page 18). Of the total fund balance, $2,273,944 is unassigned, which is available for spending at the City’s discretion, within the limitations of the fund’s purpose. The remainder of the fund balance is reserved to indicate that it is not available for new spending because it has already been restricted and committed for the following:
Restricted
Capital improvement projects $5,922,962
Circulation improvements 2,253,818
Debt Service 2,303,533
Public safety programs 1,607,190
Land held for low and moderate housing 574,389
Committed
Pension reserve $2,645,765
Equipment reserve 567,634
The General Fund is the chief operating fund of the City. As of June 30, 2021, the total fund balance of the General Fund was $6,091,855 with unassigned fund balance of $2,878,456. The General Fund total fund balance increased $939,394 or 18% from the previous fiscal year. The unassigned portion, as indicated, is available for spending at the City’s discretion. The increase in the General Fund balance indicates that the General Fund had more revenues and transfers in than it had expenditures and transfers out.
Proprietary Funds. As indicated in the description, proprietary funds are enterprise funds. The City’s Water Fund ended the year with a positive unrestricted net position. The Disposal and Ambulance/Fire Funds ended the year with a negative unrestricted net position.
General Fund Budgetary Highlights
The Statement of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual General Fund on page 60 outlines the differences between the budget and actual numbers. The City experienced $390,550 or 6% more total revenues due to an increase of Property taxes and development related fees and $226,692 or 4% decrease in total expenditures that the final budget allowed due to savings in travel or conferences through the end of the FY20, freeze on non-essential hiring, freeze on equipment purchases not already ordered (capital items), and programs reduction (After School Recreation, Summer Recreation, Lifeguards, etc.) Revenues and transfers exceeded expenditures and transfers out and increased the General Fund balance by $939,394.
Capital Assets and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021 amounts to $30,413,779 (net of depreciation). This investment in capital assets includes land, building and improvements, machinery and equipment, and infrastructure.
Major capital additions this year include the following:
Infrastructure 791,274 $
Machinery and equipment 933,623
Construction in progress (CIP) 3,994,261
11 Capital Assets
(Net of Depreciation)
2021 2020 2021 2020 2021 2020
Land 587,014 $ 587,014 $ 83,216 $ 83,216 $ 670,230 $ 670,230 $ Buildings and improvements 1,989,652 2,164,199 5,864,042 6,066,964 7,853,694 8,231,163 Machinery and equipment 1,190,501 995,428 2,742,839 2,673,258 3,933,340 3,668,686 Construction in progress 1,796,985 282,736 4,716,492 2,236,480 6,513,477 2,519,216 Infrastructure 15,813,943 15,541,293 - - 15,813,943 15,541,293 Total 21,378,095 $ 19,570,670 $ 13,406,589 $ 11,059,918 $ 34,784,684 $ 30,630,588 $ Governmental Activities Business-Type Activities Total
Additional information on the City’s capital assets can be found in Note 6 on pages 44-45.
Long-term Debt. The City’s long-term debt as of June 30, 2021 was $4,436,090 with governmental activities accounting for $2,384,600 or 54% and business-type activities accounting for $2,051,490 or 46%.
The City consolidated the PFA Revenue Bond 1991 & 1992 into the PFA Refunding Revenue Bonds Series 2015. This resulted in a historically low interest rate with a net surplus to the City of $441,078. Additionally, the City also refinanced the 2004 Lease Revenue Bond to the PFA 2015 Lease Revenue Refunding Bond. This bond was rated by Standard & Poors and was given an A+ rating based on the City’s existing financial policies and fund balance strength, and with a low interest rate of 3.25%. The City was able to greatly reduce annual obligations and improve overall cash flow to the Ambulance/Fire Fund (enterprise fund), as well as the Fire Capital Facilities Fund.
2021 2020 2021 2020 2021 2020
PFA Refunding Revenue Bonds, Series 2015 409,600 $ 570,900 $ - $ - $ 409,600 $ 570,900 $ PFA 2015 Lease Revenue Refunding Bonds 1,975,000 2,100,000 - - 1,975,000 2,100,000 Capital Lease - 3,732 - - - 3,732
CIEDB Water Loan - - 1,779,587 1,880,863 1,779,587 1,880,863 Water Meter Capital Lease - - 271,903 401,264 271,903 401,264 Total 2,384,600 $ 2,674,632 $ 2,051,490 $ 2,282,127 $ 4,436,090 $ 4,956,759 $ Governmental Activities Business-Type Activities Total
Additional information on the City’s long-term debt can be found in Note 8 on pages 45-48.
Economic Factors and Next Year’s Budgets
A year ago, as the council considered adopting our financial blueprint, the budget was filled with conservative forecasting, anticipated revenue loss, and a general unknown of what the coming year would bring. As we entered the final quarter of our fiscal year, the entire world was impacted by the COVID-19 pandemic. U.S. state and local governments, on the front lines of the response to the pandemic of the new coronavirus disease, projected the potential of record budget shortfalls.
As we consider our next year ahead, there is tempered optimism that we find ourselves in a better financial position than anticipated, and are prepared to fully return to conditions similar to those pre-pandemic.
The past year has come with challenges both visible and not. We watched our community rally around shuttered businesses to help them weather the storm of public health guidelines that limited their activity. We have heard stories of those in our community who have struggled with navigating the pandemic at home and in the workplace, affecting their mental health.
Fiscally, our sales tax, fuel tax, and tourism related revenues are lower than pre-pandemic collections. Property taxes and development related fees have all performed higher than anticipated. This, combined with reduced spending from anticipated shortfalls, has led to an expected general fund surplus of ~$300,000. 12 In last year’s budget, the city predicted to utilize fund balance to continue to maintain staffing, provide regular programs, and provide a structurally balanced budget. It is unlikely, however, that we will need to utilize those fund balances given our increased revenues and conservative spending plan.
Faced with difficult decisions, officials acted quickly in the wake of the pandemic. While much of our discretionary programming was forced to halt, other discretionary spending was suspended, including:
• No travel or conferences through end of FY20
• Freeze on non-essential hiring
• Freeze on equipment purchases not already ordered (capital items) • Revenue-neutral programs shut-down and those employees laid off (After School Rec, Summer Rec, Lifeguards, etc.)
The pandemic, unfortunately, has shown no signs of letting up. This has impacted supply chains, employee hiring and retention, and could impact the year(s) ahead. Although the total impact of the COVID-19 emergency on the City’s finances continues to be uncertain, the City remains fiscally sound thanks to prudent and conservative planning by the City Council.
The City has approved nearly 500 new single family lots on several separate housing tracts. While the rate of building is largely dependent upon market factors, the City has prepared by forming Community Facility Districts that will properly assess new development in order to help fund critical services impacted by the new growth, including police, fire, landscaping, lighting and more. As these building permits are pulled, the City expects to experience a higher collection of impact fees, to be utilized on appropriate infrastructure investment.
Other factors impacting local governments include changes to pension contribution rates. The City has begun saving one-time funds to help provide additional payments to reduce the long-term liability. In addition, Council has adopted an ongoing resolution that directs surplus funding to a dedicated fund to help provide additional flexibility for pre-payments. The City has contributed additional discretionary payments to CalPERS in 2019 and 2021, with an expected long-term interest savings of ~$1.8M.
Finally, the city, like all U.S. cities, will receive an allocation stemming from the American Rescue Plan Act (ARPA). The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program delivers $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. These funds can be used by governments to respond to the public health and economic emergency, provide premium pay to essential workers, replace revenue lost due to the pandemic, and make necessary investments in water, sewer and broadband infrastructure. Kingsburg’s allocation is $2,896,491. City Council has spent some of these funds conservatively to address pandemic impacts, including purchasing PPE, addressing city revenue loss, and providing meals for our senior population. Future spending will be determined by council as impacts of the pandemic continue to be analyzed.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, City of Kingsburg, 1401 Draper Street, Kingsburg, CA 93631.
13 BASIC FINANCIAL STATEMENTS
The notes to the basic financial statements are an integral part of this statement. 14 CITY OF KINGSBURG
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 4,929,105 11,702,586 $ 16,631,691 $ Restricted cash and investments 277,418 - 277,418
Receivables (net of allowance for uncollectibles) 1,882,099 1,823,920 3,706,019 Advances to Successor Agency 80,000 - 80,000
Land held for low and moderate housing projects 574,389 - 574,389 Internal balances 5,177,574 (5,177,574) -
Capital assets, not being depreciated 2,383,999 4,799,708 7,183,707 Capital assets, net of accumulated depreciation 8,606,881 18,994,096 27,600,977 Total assets 14,982,040 41,072,161 56,054,201
DEFERRED OUTFLOWS OF RESOURCES
Loss on refunding of debt 51,175 - 51,175
Deferred outflows related to pensions 623,238 1,909,164 2,532,402 Total deferred outflows of resources 623,238 1,960,339 2,583,577
LIABILITIES
Accounts payable and accrued expenses 1,489,138 1,096,457 2,585,595 Accrued interest payable 29,337 34,586 63,923
Deposits - 55,693 55,693
Long-term liabilities:
Due within one year:
Compensated absences 224,299 90,145 314,444
Long-term debt 289,100 238,000 527,100
Due in more than one year:
Compensated absences 239,438 86,988 326,426
Long-term debt 2,081,490 1,813,490 3,894,980
Net pension liability 1,845,366 5,518,214 7,363,580
Total liabilities 5,205,032 9,926,709 15,131,741
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 159,954 478,053 638,007 Total deferred inflows of resources 159,954 478,053 638,007
NET POSITION
Net investment in capital assets 11,355,099 19,058,680 30,413,779 Restricted for:
Capital improvement projects 5,922,962 - 5,922,962
Circulation improvements 2,253,818 - 2,253,818
Debt service 2,303,533 - 2,303,533
Public safety 1,607,190 - 1,607,190
Land held for low and moderate
housing projects 574,389 - 574,389
Unrestricted (1,114,807) 907,166 (207,641)
Total net position $ 10,240,292 32,627,738 $ 42,868,030 $ The notes to the basic financial statements are an integral part of this statement. 15 CITY OF KINGSBURG
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net (Expenses) Revenues and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type FUNCTIONS/PROGRAMS: Expenses Services Contributions Contributions Activities Activities Total Primary government:
Governmental activities:
General government 715,354 $ 237,639 $ 138,442 $ - $ (339,273) $ - $ (339,273) $ Parks and community services 767,773 152,314 74,619 57,926 (482,914) - (482,914) Public safety 4,472,718 31,523 168,328 - - (4,272,867) (4,272,867) Public works 723,805 20,367 - - - (703,438) (703,438)
Highway and streets 1,254,211 - 179,024 1,181,686 106,499 - 106,499 2,171,136 650,586 1,029,644 70,400 2,620,594 - 2,620,594 Interest and fiscal charges - 124,188 - - (124,188) - (124,188) Total governmental activities 2,612,979 8,708,635 2,592,719 307,350 (3,195,587) - (3,195,587) Business-type activities:
Water 2,380,274 2,349,264 - - - 31,010 31,010
Disposal 1,925,875 2,161,473 - - - (235,598) (235,598)
Ambulance/Fire 3,144,588 5,301,596 2,362,855 - - 205,847 205,847 Total business-type activities 7,450,737 9,812,333 2,362,855 - - 1,259 1,259 Total primary government $ 10,063,716 18,520,968 $ 4,955,574 $ 307,350 $ (3,195,587) 1,259 (3,194,328) General revenues:
Property taxes 1,780,984 - 1,780,984
Sales and use taxes 3,590,893 - 3,590,893
Franchise taxes 519,474 - 519,474
Transient occupancy taxes 295,857 - 295,857
Motor vehicle in-lieu 1,185,675 - 1,185,675
Investment earnings 124,720 20,983 145,703
Miscellaneous 242,866 - 242,866
Transfers (300,000) 300,000 -
Total general revenues and transfers 320,983 7,440,469 7,761,452 Change in net position 322,242 4,244,882 4,567,124
Net position - beginning of year 9,982,419 28,382,856 38,365,275 Prior period adjustments (64,369) - (64,369)
Net position - beginning, restated 9,918,050 28,382,856 38,300,906 Net position - ending $ 10,240,292 32,627,738 $ 42,868,030 $ Planning and community
The notes to the basic financial statements are an integral part of this statement. 16 CITY OF KINGSBURG
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Debt
Service Funds
Capital
Projects Funds
General
Local
Transportation Measure E
Kingsburg
Joint Powers
Authority
Capital
Facilities
Linnea Villas
Public Project
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments $ 1,432,060 2,110,452 $ 1,056,284 $ - $ 3,826,877 $ 7,384 $ 3,269,529 $ 11,702,586 $ Restricted cash and investments - - - 277,418 - - - 277,418 Receivables 505,125 211,297 447,358 - 3,407 234,126 480,786 1,882,099 Due from other funds - 4,174,403 - - - - - 4,174,403
Advances to other funds - - - 2,287,000 - - - 2,287,000 Advances to Successor Agency - - - 80,000 ` - - 80,000
Land held for low and moderate housing projects - - - - - - 574,389 574,389 Total assets $ 1,643,357 6,789,980 $ 1,503,642 $ 2,644,418 $ 3,830,284 $ 241,510 $ 4,324,704 $ 20,977,895 $
LIABILITIES
Accounts payable and accrued expenses 643,041 $ 209,436 $ 138,699 $ - $ - $ 229,568 $ 268,394 $ 1,489,138 $ Due to other funds - - - 340,885 - 300,615 445,329 1,086,829 Deposits 55,084 - - - - - 609 55,693
Advances from other funds - - - - - - 197,000 197,000
Total liabilities 209,436 698,125 138,699 340,885 - 530,183 911,332 2,828,660
FUND BALANCES
Restricted for:
Capital improvements - - - - 3,830,284 - 2,092,678 5,922,962 Circulation improvements 1,433,921 - - - - - 819,897 2,253,818 Debt service - - - 2,303,533 - - - 2,303,533
Public safety - - 1,364,943 - - - 242,247 1,607,190
Land held for low and moderate
housing projects - - - - - - 574,389 574,389
Committed to:
Pension reserve - 2,645,765 - - - - - 2,645,765
Equipment reserve - 567,634 - - - - - 567,634
Unassigned - 2,878,456 - - - (288,673) (315,839) 2,273,944 Total fund balances 1,433,921 6,091,855 1,364,943 2,303,533 3,830,284 (288,673) 3,413,372 18,149,235 Total liabilities and fund balances $ 1,643,357 6,789,980 $ 1,503,642 $ 2,644,418 $ 3,830,284 $ 241,510 $ 4,324,704 $ 20,977,895 $ The notes to the basic financial statements are an integral part of this statement. 17 CITY OF KINGSBURG
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Total fund balances - governmental funds 18,149,235 $
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. 21,378,095
Losses related to the refunding of debt were recognized in the governmental funds, but are capitalized and amortized over the life of the debt in the statement of net position. 51,175 Long-term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the governmental funds. Long-term liabilities at year-end consist of:
Revenue bonds (2,370,590)
Compensated absences (463,737)
Net pension liability (5,518,214) (8,352,541)
Pension related deferrals are reported as deferred outflows and inflows of resources on the statement of net position. 1,431,111 Interest on long-term debt is reported as an expenditure of the governmental funds when paid because it requires the use of current financial resources; however, accrued interest must be recorded in the government-wide financial statements when incurred. (29,337)
Net position of governmental activities $ 32,627,738
Amounts reported for governmental activities in the statement of net position are different because:
The notes to the basic financial statements are an integral part of this statement. 18 CITY OF KINGSBURG
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Debt
Service Fund
Capital
Projects Fund
General
Local
Transportation Measure E
Kingsburg
Joint Powers
Authority
Capital
Facilities
Linnea Villas
Public Project
Other
Governmental
Funds
Total
Governmental
Funds
REVENUES
Taxes $ - 3,784,541 $ 2,313,063 $ - $ - $ - $ 143,660 $ 6,241,264 $ Licenses and permits - 564,818 - - - - - 564,818
Intergovernmental 210,053 1,336,839 - - - 1,029,644 1,584,477 4,161,013 Charges for services - 321,432 - - - - - 321,432
Fines and forfeitures - 5,023 - - - - - 5,023
Development fees 563,351 - - - 934,457 - 281,135 1,778,943 Use of money and property - 8,825 3,334 76,803 21,624 - 14,134 124,720 Other revenues - 211,976 397 - - - 30,493 242,866
Total revenues 218,878 6,787,980 2,316,794 76,803 956,081 1,029,644 2,053,899 13,440,079
EXPENDITURES
Current:
General government 1,147,009 - - - - - - 1,147,009
Parks and community services 393,572 - - - - - 193,720 587,292 Public safety 2,688,708 - 1,069,537 - - - 296,437 4,054,682 Public works 564,783 - - - - - - 564,783
Highway and streets - 68,011 - - - - 480,912 548,923
Planning and community
development - 536,503 - - 43,945 - 61,200 641,648
Capital outlay 220,217 308,656 487,852 - 3,626 1,318,317 837,406 3,176,074 Debt service:
Principal - 4,333 - 286,300 - - - 290,633
Interest and fiscal charges - 22 - 82,410 - - 34,291 116,723 Total expenditures 288,228 5,643,586 1,557,389 368,710 47,571 1,318,317 1,903,966 11,127,767 Excess (deficiency) of revenues over
(under) expenditures (69,350) 1,144,394 759,405 (291,907) 908,510 (288,673) 149,933 2,312,312
OTHER FINANCING SOURCES/(USES)
Transfers in 150,000 - - - - - 55,000 205,000
Transfers out (355,000) - - - - - (150,000) (505,000)
Total other financing sources (uses) (205,000) - - - - - (95,000) (300,000) Net change in fund balances (69,350) 939,394 759,405 (291,907) 908,510 (288,673) 54,933 2,012,312 Fund balances - beginning, restated 1,503,271 5,152,461 605,538 2,595,440 2,921,774 - 3,358,439 16,136,923 Fund balances (deficit) - ending $ 1,433,921 6,091,855 $ 1,364,943 $ 2,303,533 $ 3,830,284 $ (288,673) $ 3,413,372 $ 18,149,235 $ The notes to the basic financial statements are an integral part of this statement. 19 CITY OF KINGSBURG
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 2,012,312 $ Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.
The capital outlay expenditures are, therefore, added back to fund balance. 2,713,007 Depreciation expense is deducted from the fund balance. (905,582) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. (53,367) Compensated absences expense reported in the statement of activities does not require the use of current financial resources; therefore, it is not reported as an expenditure in the governmental funds. 212,105
In the statement of activities, interest is accrued on long-term debt; whereas, in governmental funds, interest expenditure is recorded when paid. 2,383 Changes to net pension liability and pension related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (16,160) The issuance of long-term debt (e.g., bonds) provides current financial resources to the governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued; whereas these amounts are deferred and amortized in the statement of activities. The increases (decreases) for long-term debt and related items are listed below:
Principal payments on long-term debt 290,032
Amortization of the loss on refunding of debts (8,838)
Amortization of bond discounts (1,010)
Change in net position of governmental activities $ 4,244,882 The notes to the basic financial statements are an integral part of this statement. 20 CITY OF KINGSBURG
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Business-Type Activities — Enterprise Funds
Water Disposal Ambulance/Fire Total
ASSETS
Current assets:
Cash and investments $ - 4,929,105 $ - $ 4,929,105 $
Receivables (net of allowance for uncollectibles) 151,098 202,160 1,470,662 1,823,920 Total current assets 151,098 5,131,265 1,470,662 6,753,025 Noncurrent assets:
Property, plant and equipment,
net of accumulated depreciation - 9,138,123 4,268,466 13,406,589 Total noncurrent assets - 9,138,123 4,268,466 13,406,589 Total assets 151,098 14,269,388 5,739,128 20,159,614
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 176,251 367,925 79,062 623,238 Total deferred outflows of resources 79,062 176,251 367,925 623,238
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 720,286 253,209 122,962 1,096,457 Accrued interest payable 34,586 - - 34,586
Due to other funds - 404,724 2,682,850 3,087,574
Compensated absences 28,612 15,391 46,142 90,145
Current portion of long-term debt - 238,000 - 238,000
Total current liabilities 673,324 1,021,484 2,851,954 4,546,762 Noncurrent liabilities:
Long-term debt 1,813,490 - - 1,813,490
Advances from other funds 115,000 1,975,000 - 2,090,000 Compensated absences 12,099 71,382 3,507 86,988
Net pension liability 273,724 606,351 965,291 1,845,366 Total noncurrent liabilities 277,231 2,546,940 3,011,673 5,835,844 Total liabilities 950,555 3,568,424 5,863,627 10,382,606
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 21,304 48,117 90,533 159,954 Total deferred inflows of resources 21,304 48,117 90,533 159,954
NET POSITION
Net investment in capital assets 7,086,633 - 4,268,466 11,355,099 Unrestricted (741,699) 3,742,465 (4,115,573) (1,114,807) Total net position (deficit) $ (741,699) 10,829,098 $ 152,893 $ 10,240,292 $ The notes to the basic financial statements are an integral part of this statement. 21 CITY OF KINGSBURG
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION – PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Business-Type Activities — Enterprise Funds
Water Disposal Ambulance/Fire Total
OPERATING REVENUES:
Charges for services $ 1,925,875 2,380,274 $ 1,156,445 $ 5,462,594 $ Total operating revenue 1,925,875 2,380,274 1,156,445 5,462,594 OPERATING EXPENSES:
Contractual services and utilities 901,638 1,778,587 1,187,093 3,867,318 Personnel services 894,427 353,835 1,707,663 2,955,925
Supplies and materials 40,514 27,479 123,929 191,922
Depreciation and amortization 1,572 426,628 231,280 659,480 Total operating expenses 2,161,473 2,263,207 3,249,965 7,674,645 Operating income (loss) (235,598) 117,067 (2,093,520) (2,212,051) NONOPERATING REVENUES (EXPENSES):
Interest income 20,983 - - 20,983
Grants - - 2,362,855 2,362,855
Interest and fiscal charges - (86,057) (63,488) (149,545) Total nonoperating revenues (expenses) - (65,074) 2,299,367 2,234,293 Net income (loss) before transfers (235,598) 51,993 205,847 22,242 Transfers in - - 300,000 300,000
Change in net position 51,993 (235,598) 505,847 322,242 Net position (deficit) - beginning, restated (506,101) 10,777,105 (352,954) 9,918,050 Net position (deficit) - ending $ (741,699) 10,829,098 $ 152,893 $ 10,240,292 $ The notes to the basic financial statements are an integral part of this statement. 22 CITY OF KINGSBURG
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Water Disposal Ambulance/Fire Total
Cash flows from operating activities:
Receipts from customers and users 2,379,086 $ 1,909,622 $ 621,801 $ 4,910,509 $ Payments to suppliers for goods and services (876,755) (1,687,487) (1,316,816) (3,881,058) Payments to or on behalf of employees for services (241,820) (656,469) (1,560,389) (2,458,678) Net cash provided by (used for) operating activities (19,685) 845,862 (2,255,404) (1,429,227) Cash flows from noncapital financing activities:
Transfers from other funds - - 300,000 300,000
Interfund loan activity - 19,685 211,815 231,500
Noncapital grant revenue - - 2,362,855 2,362,855
Net cash provided by noncapital
financing activities 19,685 - 2,874,670 2,894,355
Cash flows from capital and related financing activities:
Acquisition of capital assets (2,575,374) - (430,778) (3,006,152) Principal paid on long-term debt (230,637) - - (230,637) Interfund loan repayment (80,000) - (125,000) (205,000) Interest and fiscal charges (86,057) - (63,488) (149,545) Net cash provided by (used for) capital and related
financing activities - (2,972,068) (619,266) (3,591,334) Cash flows from investing activities:
Interest on investments - 20,983 - 20,983
Net cash provided by investing activities - 20,983 - 20,983 Net increase (decrease) in cash and cash equivalents (2,105,223) - - (2,105,223) Cash and cash equivalents, beginning - 7,034,328 - 7,034,328 Cash and cash equivalents, ending $ - 4,929,105 $ - $ 4,929,105 $ Business-Type Activities — Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 23 CITY OF KINGSBURG
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(Continued)
Total
Enterprise
Water Disposal Ambulance/Fire Funds
Reconciliation of operating income (loss) to net
cash provided by (used for) operating activities:
Operating income (loss) 117,067 $ (235,598) $ (2,093,520) $ (2,212,051) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization 426,628 1,572 231,280 659,480 (Increase) decrease in:
Accounts receivable, net (1,188) (16,253) (599,013) (616,454) Deferred outflows of resources from pensions (57,363) (25,589) (23,290) (106,242) Increase (decrease) in:
Accounts payable and accrued expenses 65,397 118,579 (5,794) 178,182 Compensated absences (4,501) 3,603 6,373 5,475
Net pension liability 124,630 278,012 181,247 583,889
Deferred inflows of resources from pension 9,371 21,810 47,313 78,494 Net cash provided by (used for) operating activities $ (19,685) 845,862 $ (2,255,404) $ (1,429,227) $ Business-Type Activities
The notes to the basic financial statements are an integral part of this statement. 24 CITY OF KINGSBURG
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
Successor Agency
of the
Redevelopment
Agency PrivatePurpose Trust
ASSETS
Cash and investments 103,708 $
Other assets 17,266
Total assets 120,974
LIABILITIES
Accrued interest payable 2,650
Deposits 11,750
Advances from the City 80,000
Total liabilities 94,400
NET POSITION
Restricted for:
Redevelopment agency dissolution $ 26,574
The notes to the basic financial statements are an integral part of this statement. 25 CITY OF KINGSBURG
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Successor Agency
of the
Redevelopment
Agency PrivatePurpose Trust
ADDITIONS
Taxes $ 51,320
Total additions 51,320
DEDUCTIONS
Interest and fiscal charges 4,543
Total deductions 4,543
Net increase in fiduciary net position 46,777
Net position (deficit) - beginning (20,203)
Net position - ending $ 26,574
26 THIS PAGE IS LEFT BLANK INTENTIONALLY.
27 NOTES TO THE BASIC FINANCIAL STATEMENTS
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Kingsburg, California (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the government’s accounting principles are described below.
These financial statements present the government and its component units, entities for which the City is considered to be financially accountable. Blended component units are, in substance, part of the government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. There is a blended component unit included in these financial statements and it has a June 30 year-end. There are no discretely presented component units included in these financial statements. The following sections further describe the significant policies of the City.
A. Reporting Entity
The City was incorporated as a general law city in 1908. The City operates under a Council-Manager form of government. The City’s major operations include public safety, public works, water and disposal, parks and recreation, building inspection, public improvements, planning and community development, and general administrative services.
The accompanying basic financial statements include the financial activities of the City, the primary government, and its blended component unit, the Kingsburg Joint Powers Authority (KJPA). Financial information for the City and its component units is accounted for in the accompanying financial statements in accordance with principles defining the governmental reporting entity adopted by the GASB. The KJPA was established June 30, 1990 through a Joint Exercise of Powers Agreement. The formation of the joint powers authority was approved by the City Council who is also designated as the Board of Directors for the KJPA. The City Manager is appointed Secretary with the City staff providing all support services. The purpose of the KJPA is solely to provide funds from the sale of revenue bonds to finance or refinance the costs of various projects for the City. The City set up the KJPA to act as a financing/lending type institution only. The KJPA/City legislative meetings are held concurrently. The KJPA is reported as a debt service fund and does not issue separate financial statements.
B. Basis of Presentation – Fund Accounting
Government-Wide Financial Statements – The statement of net position and the statement of activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double-counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City’s business-type activities and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are included in the program expense reported for individual functions. Certain indirect costs, which cannot be identified and broken down, are included in the program expense reported for individual functions and activities.
Amounts reported as program revenues include: 1) charges to customers or applicant who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation – Fund Accounting (Continued)
Fund Financial Statements – The fund financial statements provide information about the City’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. 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 aggregated and reported as non-major funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.
Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.
The Local Transportation Fund accounts for revenues received and expenditures made for use on certain transportation and transit projects within Fresno County. Financing is generated from a one-quarter percent sales and use tax made pursuant to the California Transportation Development Act (TDA). Expenditures of these moneys must be made in accordance with TDA provisions.
The Measure E Fund accounts for apportioned local sales tax revenues used exclusively to hire police officers, firefighters, and paramedics, and to replace outdated equipment.
The Kingsburg Public Joint Powers Authority Fund is used to account for revenues and expenditures of the Kingsburg Public Finance Authority Revenue Bonds. Bond proceeds are to be used to finance or refinance the costs of various improvement projects for the City and other public agencies.
The Capital Facilities Fund is used to account for the AB1600 fees received to help the City mediate the cost of growth in the City. These fees are collected from developers to construct facilities related to arterial streets, fire facilities, police facilities, city hall facilities, public works facilities and special recreation facilities.
The Linnea Villas Public Project Fund is used to account for revenues and expenditures as a result of a development agreement with the Housing Authority of Fresno County for the development of a multi-family senior apartment project of up to sixty (60) units for low-income persons ages sixty-two (62) years and older.
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows for each major enterprise fund.
The City has three major enterprise funds, the Water, Disposal, and Ambulance/Fire, which are used to account for operations that are financed and operated in a manner similar to private business enterprises. In an enterprise fund, the intent of the City Council is that costs (expenses, including depreciation) of providing services to the general public, on a continuing basis, be financed or recovered primarily through user charges.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation – Fund Accounting (Continued)
The City reports the following major enterprise funds:
The Water Fund is used to account for financial activity of the water utility system.
The Disposal Fund is used to account for the financial activity of the solid waste collection and disposal utility system.
The Ambulance/Fire Fund is used to account for the financial activity of the Ambulance/Fire activities.
Additionally, the City reports the following private-purpose fund type:
The Successor Agency of the Redevelopment Agency Private-Purpose Trust Fund accounts for assets and liabilities of the former redevelopment agency until they are distributed to other units of state and local government as a result of the dissolution of the redevelopment agency.
During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/to other funds and advances to/from other funds.
While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in the government activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Interfund services provided and used are not eliminated in the process of consolidation.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements.
Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities’ column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.
C. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when liability is incurred, regardless of when the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus and Basis of Accounting (Continued) The governmental fund financial statements are reported using current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible with the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of longterm debt and acquisitions under capital leases are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period.
Entitlements are recorded as revenue when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 day of the year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period. All other revenue items are considered to be measurable and available only when cash is received by the City.
The proprietary funds and the private-purpose trust fund are reported using the economic resources measurement focus and the accrual basis of accounting.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of each fund. Nonoperating revenues, such as interest income, state and federal grants, and subsidies, result from nonexchange transactions or ancillary activities. Operating expenses include costs for providing services and delivering goods such as administrative expenses and depreciation on capital assets. All other expenses not meeting this definition are reported as nonoperating expenses.
D. Budgetary Information
Budgetary and Budgetary Accounting
Annual budgets are adopted on basis consistent with generally accepted accounting principles for the general fund, special revenue funds, capital funds, debt service funds and enterprise funds.
The City, in establishing the budgetary data reflected in the basic financial statements and supplementary information, utilizes the following procedures:
The City Manager submits to the City Council a proposed budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them. The City Council reviews the proposed budget at specially scheduled sessions, which are open to the public. The Council also conducts a public hearing on the proposed budget to obtain comments from interest persons.
Prior to July 1, the budget is legally adopted through passage of an ordinance. The budget is amended during the fiscal year to reflect all transfers and amendments.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Budgetary information (Continued)
The appropriated budget is prepared by fund, department, and account. The City’s department heads may make transfers of appropriations within a department. The City Manager is authorized to make budget transfers between departments within funds. All revisions must be reported to the City Council. Transfer of appropriations between funds required the approval of the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level.
All annual appropriations lapse at fiscal year-end to the extent they have not been expended.
The actual results of operations compared to the appropriations adopted by the City Council for budgeted major governmental funds are included in the fund financial statements. The comparisons of actual results with budget for nonmajor funds are presented as supplemental information in the combining schedules.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance Cash and Cash Equivalents – Cash and cash equivalents represent the City’s cash bank accounts including, but not limited to, certificates of deposit, money market funds and cash management pools for reporting purposes in the statement of cash flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the statement of cash flows.
The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month-end cash balances in each fund.
Investments of the pool include only those investments authorized by the California Government Code such as United Stated Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund. Investments are stated at cost or amortized cost.
Accounts Receivable – Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. The proprietary funds include a year-end accrual for services through the end of the fiscal year which have not yet been billed. Accounts receivable are reported net of an allowance for uncollectible accounts.
Property Tax Calendar – Fresno County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year. Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after the year-end. Property taxes on the unsecured roll are due on July 1 and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year-end accrual.
The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.
Due From/To Other Funds – Items classified as due from/to other funds represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
Advances To/From Other Funds – This classification represents noncurrent portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and, therefore, is not available for appropriation.
Land Held for Low and Moderate Housing Projects – Land acquired for future sale are shown as land held for low and moderate housing projects in the accompanying financial statements. Land held for low and moderate housing projects is carried at the lower of cost or net realizable value.
Capital Assets – Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the in the government-wide statement of net position and the proprietary funds’ statement of net position. Capital assets are defined by the government as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Capital outlays are recorded as expenditures of the governmental funds and as assets in the government-wide financial statements to the extent the City’s capitalization threshold is met. 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.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments 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.
Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
Buildings and improvements ......................... 10-50 years Plant system .................................................. 20-40 years Machinery and equipment ............................... 5-10 years Infrastructure ....................................................... 40 years Interest Payable – In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental fund-types and proprietary fund-types. In the fund financial statements, proprietary fund-types recognize the interest payable when the liability is incurred.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
Long-term Obligations – In the government-wide financial statements, proprietary fund types in the fund financial statements, and private-purpose trust fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fundtype statement of net position. Initial-issue bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Offering costs are expensed when incurred. Bonds payable are reported net of the unamortized portion of applicable premium or discount. Deferred amounts on refunding are reported as deferred outflows of resources. Bond issuance costs, including underwriters’ discount, are expensed when incurred. Amortization of bond premiums or discounts and deferred amounts on refunding are included in interest expense.
In the governmental funds financial statements, bond premiums, discounts, and issuance costs are recognized during the period issued. The face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Interest and principal payments are reported as debt service expenditures.
Unearned Revenue - Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).
Unavailable Revenue - In the fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations.
Pensions - For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Kingsburg’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Compensated Absences - Accumulated unpaid vacation benefits are accrued as a liability as the benefits are earned. The entire compensated absence liability is reported on the government-wide financial statements as long-term debt. For governmental funds, the current portion of unpaid compensated absences is recognized upon the occurrence of relevant events such as employee resignations and retirements that occur prior to year-end that have not yet been paid with expendable available financial resources. These amounts are reported in the fund from which the employees who have accumulated leave are paid.
Sick leave is accumulated at 15 days per year for full-time regular employees. Vacation is accumulated at 12 days per year for full-time regular employees with less than five years of service to a maximum of 25 days per year for full-time regular employees with over 20 years of service with no limit on accrual of unused hours.
Upon employment termination, unused sick leave is paid out at 50% for less than 20 years of service and 75% for more than 20 years of service. These amounts are included as liabilities in the government-wide and enterprise fund financial statements.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
Net Position - In the government-wide financial statements, net position is classified in the following categories:
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 this category.
Restricted net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted net position – This category presents the net position of assets that do not meet the definition of “net investment in capital assets” or “restricted net position”.
When both restricted and unrestricted net position are available, restricted resources are depleted first before the unrestricted resources are used.
Fund Balances - The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:
Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact.
Restricted - This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation.
Committed - This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements.
Assigned - This classification includes amounts that are constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the City Council or through the City Council delegating this responsibility to the Finance Director through the budgetary process. This classification also includes the remaining positive fund balance for all governmental funds except for the general fund.
Unassigned - This classification is the residual classification for the general fund and represents fund balance that has not been assigned to other funds and that has not been restricted, committed or assigned to specific purposes within the general fund. In other governmental funds it includes any negative residual amounts that may exist as a result of expenditures incurred for specific purposes in excess of amounts restricted, committed or assigned to those purposes.
The City would typically use restricted resources first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
Stabilization Arrangement – The Economic Stabilization Fund (Stabilization Fund) was established by Resolution No. 2018-052 and adopted by City Council on July 18, 2018. Additions to the stabilization amount are a result of the General Fund’s surplus above the 20% appropriations for a given year. The Stabilization Fund is then allocated 15% of the given year’s surplus funding.
The Stabilization Fund was created to help stabilize future budgets in instance of lower than anticipated revenues (including more volatile revenues). Use of the funds would be only with the approval of Council. The balance of the Stabilization Fund as of June 30, 2021 is $754,634 which is included in the General Fund’s unassigned fund balance.
Encumbrances – The City does not use encumbrance accounting.
Use of Estimates – The preparation of the 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 and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Equity
The following is a summary of deficit fund balances and net position as of June 30, 2021:
Governmental Funds
Major Funds:
Linnea Villas Public Project $ 288,673
Nonmajor Special Revenue Funds:
Senior Center $ 66,985
School Resource Officer $ 170,264
Nonmajor Capital Projects Funds:
Street Projects $ 25,554
Nonmajor Debt Service Fund:
Assessment District $ 53,036
Enterprise Funds
Major Funds:
Disposal Fund $ 741,699
The deficit fund balance in the Senior Center Fund, School Resource Officer Fund, Street Projects Fund, and Assessment Districts Fund, is due to reclassification of outstanding debt into the fund as an advance. The deficit will be eliminated as resources are obtained from other funds.
The deficit fund balances in the Linnea Villas Public Project Fund and Disposal Fund is due to operating expenditures exceeding operating revenues. Future revenues are expected to offset these deficits.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
37 NOTE 3 – CASH AND INVESTMENTS
The City pools all of its cash and investments except those funds required to be held by bond trustee or outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held by bond trustee is credited directly to the related funds.
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Statement of net position:
Cash and investments - unrestricted 16,631,691 $
Cash and investments - restricted 277,418
Fiduciary funds:
Cash and investments 103,708
Total cash and investments $ 17,012,817
Cash and investments as of June 30, 2021 consist of the following:
Cash on hand 1,050 $
Deposits with financial institutions 1,578,226
Investments
Local Agency Investment Fund 15,156,123
Held by Fiscal Agent:
Money Market Account 277,418
Total cash and investments $ 17,012,817
Restricted cash and investments of $277,418 are held in the Kingsburg Joint Powers Authority Debt Service Fund for debt service payments.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
38 NOTE 3 – CASH AND INVESTMENTS (Continued)
A. Investments Authorized by the California Government Code and the City’s Investments Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investments 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. The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debts proceeds held by bond trustee 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.
Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements 92 days 20% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 5 years 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
JSA Pools (other investment pools) N/A None None
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
39 NOTE 3 – CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements
Investment 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.
Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
C. Disclosures 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. The City manages its exposure to interest rate risk is by investing funds in liquid, short-term investments which can be converted to cash when necessary to meet disbursement requirements.
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following schedule that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60 More than 60
Investment Type Total or Less Months Months Months
Local Agency Investment Fund 15,156,123 $ 15,156,123 $ - $ - $ - $ Held by Bond Trustee:
Money Market Account 277,418 277,418 - - -
Total $ 15,433,541 15,433,541 $ - $ - $ - $
Remaining Maturity (in Months)
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
40 NOTE 3 – CASH AND INVESTMENTS (Continued)
D. 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 below is the minimum rating required (where applicable) by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type. The column marked “exempt from disclosure” identifies those investment types for which GASB Statement No. 40 does not require disclosure as to credit risk:
Exempt from
Investment Type Total Disclosure A-1+ AAAm Not Rated
Local Agency Investment Fund 15,156,123 $ - $ - $ - $ 15,156,123 $ Held by Bond Trustee:
Money Market Account - 277,418 - - 277,418
Total $ 15,433,541 - $ - $ - $ 15,433,541 $
Rating as of Year-End
E. 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. At June 30, 2021, the City did not have any 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.
F. Custodial Credit Risk-Deposits
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 possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provisions for deposits:
At June 30, 2021, the carrying amount of the City’s deposits was $1,578,226. Bank balances before reconciling items were $1,648,808 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.
Thus, collateral for cash deposits is considered to be held in the City’s name.
According to California law, the fair value of pledged securities with banking institutions must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
41 NOTE 3 – CASH AND INVESTMENTS (Continued)
G. Custodial Credit Risk-Investments
The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investments or collateral securities that are in 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 investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to the City’s indirect investment in securities through the use of mutual funds or government investments pools such as the Local Agency Investment Fund (LAIF).
H. Investment in State Investment Pool
The City is a voluntary participant in the LAIF that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investments in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
I. Investment Valuation
The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: 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.
The majority of the City’s investments, which are allocated at fair value, are in a State of California Local Agency Investment Fund (LAIF). LAIF invests in numerous types of investments ranging all levels in the fair value hierarchy. Accordingly, LAIF is not an investment type that can be categorized in any particular level in the fair value hierarchy.
NOTE 4 – RECEIVABLES
Receivables as of June 30, 2021 consisted of the following for the governmental funds:
General
Local
Transportation
Fund Measure E
Capital
Facilities
Linnea Villas
Public Project
Other
Governmental
Funds
Total
Governmental
Funds
Receivables:
Taxes 369,261 $ - $ - $ - $ - $ - $ 369,261 $
Intergovernmental 135,864 211,297 447,358 3,407 234,126 480,786 1,512,838 Receivables 505,125 $ 211,297 $ 447,358 $ 3,407 $ 234,126 $ 480,786 $ 1,882,099 $ Receivables as of June 30, 2021 consisted of the following for the proprietary funds:
Water Disposal Ambulance/Fire
Total
Proprietary
Funds
Receivables:
Accounts 250,235 $ 207,833 $ 2,034,335 $ 2,492,403 $
Less: Allowance for doubtful accounts (56,735) (48,075) (563,673) (668,483) Receivables, net $ 151,098 202,160 $ 1,470,662 $ 1,823,920 $
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
42 NOTE 5 – INTERFUND ACTIVITIES
A. Due From/To Other Funds
Due from/to other funds balances as of June 30, 2021 are as follows:
Due From Due To
Governmental Funds
Major Funds:
General Fund 4,174,403 $ - $
Kingsburg Public Finance Authority Debt Service Fund 340,885 - Linnea Villas Public Project 300,615 -
Nonmajor Funds:
Senior Center Special Revenue Fund 54,092 -
School Resource Officer Special Revenue Fund 186,697 -
Street Projects Capital Projects Fund 204,540 -
Enterprise Funds
Major Funds:
Disposal Fund 404,724 -
Ambulance/Fire Fund 2,682,850 -
Total $ 4,174,403 4,174,403 $
The “due from” balances in the funds listed above represents loans made to other funds to cover operating cash deficits and are expected to be collected in the subsequent year.
B. Advances From/To Other Funds
The Kingsburg Joint Powers Authority issued revenue bonds and used the bond proceeds to acquire qualified obligations of the City of Kingsburg to finance various capital improvements and projects. These advances carry a stated interest rate and have scheduled debt service payments. They are not expected to be repaid within one year. The long-term interfund loan balances as of June 30, 2021 are as follows:
Advances From Advances To
Governmental Funds
Major Funds:
Kingsburg Joint Powers Authority Debt Service Fund $ - 2,287,000 $ Nonmajor Fund:
Assessment Districts Debt Service Fund 197,000 -
Enterprise Funds
Major Funds:
Ambulance/Fire Enterprise Fund 1,975,000 -
Water Enterprise Fund 115,000 -
Total $ 2,287,000 2,287,000 $
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
43 NOTE 5 – INTERFUND ACTIVITIES (Continued)
C. Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2021 is as follows:
Transfer In Transfer Out
Governmental Funds
Major Funds:
General Fund 150,000 $ 355,000 $
Nonmajor Fund:
Senior Center Special Revenue Fund - 55,000
COPS Grant Special Revenue Fund 150,000 -
Enterprise Funds
Major Funds:
Water Enterprise Fund - -
Ambulance/Fire Enterprise Fund - 300,000
Total $ 505,000 505,000 $
During the fiscal year, the City made the following transfers:
(1) The General Fund transferred $300,000 to the Ambulance/Fire enterprise fund and $55,000 to the Senior Center special revenue fund to cover operating cash deficits. (2) The COPS Grant special revenue fund transferred $150,000 to the general fund to cover costs of officers reported in General Fund expenses.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
44 NOTE 6 – CAPITAL ASSETS
Capital assets activity of the governmental activities for the year ended June 30, 2021 is as follows:
Balances Balances
July 1, 2020 Additions Deletions June 30, 2021
Governmental Activities:
Capital assets not being depreciated:
Land 587,014 $ - $ - $ 587,014 $
Construction in progress 282,736 1,514,249 - 1,796,985
Total capital assets, not being depreciated 869,750 1,514,249 - 2,383,999 Capital assets, being depreciated:
Buildings and improvements 5,129,174 - - 5,129,174
Infrastructure 19,441,980 766,173 - 20,208,153
Machinery and equipment 432,585 4,158,164 - 4,590,749
Total capital assets, being depreciated 1,198,758 28,729,318 - 29,928,076 Less accumulated depreciation for:
Buildings and improvements (2,964,975) (174,547) - (3,139,522) Infrastructure (3,900,687) (493,523) - (4,394,210)
Machinery and equipment (237,512) (3,162,736) - (3,400,248) Total accumulated depreciation (10,028,398) (905,582) - (10,933,980) Total capital assets being depreciated, net 293,176 18,700,920 - 18,994,096 Governmental activities capital assets, net $ 1,807,425 19,570,670 $ - $ 21,378,095 $ Depreciation expense is charged to governmental functions as follows:
Governmental activities:
General government 17,164 $
Parks and community services 107,423
Highways and streets 537,179
Public safety 243,816
Total $ 905,582
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
45 NOTE 6 – CAPITAL ASSETS (Continued)
Capital assets activity of the business-type activities for the year ended June 30, 2021 is as follows:
Restated
Balances Balances
July 1, 2020 Additions Deletions June 30, 2021
Business-Type Activities:
Capital assets, not being depreciated:
Land 83,216 $ - $ - $ 83,216 $
Construction in progress 2,480,012 2,236,480 - 4,716,492 Total capital assets, not being depreciated 2,319,696 2,480,012 - 4,799,708 Capital assets, being depreciated:
Buildings, improvements and plants 11,102,190 25,101 - 11,127,291 Machinery and equipment 5,183,104 501,038 (422,952) 5,261,190 Total capital assets, being depreciated 526,139 16,285,294 (422,952) 16,388,481 Less accumulated depreciation for:
Buildings, improvements and plants (5,035,226) (228,023) - (5,263,249) Machinery and equipment (431,457) (2,509,846) 422,952 (2,518,351) Total accumulated depreciation (659,480) (7,545,072) 422,952 (7,781,600) Total capital assets being depreciated, net 8,740,222 (133,341) - 8,606,881 Business-type activities capital assets, net $ 2,346,671 11,059,918 $ - $ 13,406,589 $ Depreciation expense is charged to business-type functions as follows:
Business-type activities:
Water $ 426,628
Disposal 1,572
Ambulance/Fire 231,280
Total $ 659,480
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
46 NOTE 7 – OPERATING LEASE
The City has a non-cancelable lease for the City’s Council Chambers. The lease was extended on November 1, 2018 and expires October 31, 2021. For the fiscal year-end June 30, 2021 rent expense was $33,800. The lease payments are $2,600 per month.
Future minimum lease payments for the lease are as follows:
Fiscal Year Ending Principal
2022 $ 10,400
Total 10,400 $
NOTE 8 – LONG-TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.
In government fund-types, debt discounts and issuance costs are recognized in the current period. Debt discounts and issuance costs incurred in proprietary funds are deferred and amortized over the term of the debt using the bonds-outstanding method, which approximates the effective interest method. The City’s debt activities are summarized below and discussed in detail thereafter:
Amounts
Balances Balances Due Within
July 1, 2020 Additions Deletions June 30, 2021 One Year Governmental Activities Long-Term Debt:
Direct Placement:
Bonds Payable:
PFA Refunding Revenue Bonds, Series 2015 $ 570,900 - $ (161,300) $ 409,600 $ 159,100 $ Total Direct Placements: 570,900 - (161,300) 409,600 159,100 Direct Borrowings:
Bonds Payable:
PFA 2015 Lease Revenue Refunding Bonds 2,100,000 - (125,000) 1,975,000 130,000 Unamortized bond discounts (15,020) - 1,010 (14,010) -
Capital lease - 3,732 (3,732) - -
Total Direct Borrowings: - 2,088,712 (127,722) 1,960,990 130,000 Compensated absences 447,577 380,315 (364,155) 463,737 224,299 Total governmental activities debt 3,107,189 380,315 (653,177) 2,834,327 513,399 Business-Type Activities Long-Term Debt:
Direct Borrowings:
CIEDB water loan 1,880,863 - (101,276) 1,779,587 104,294 Water meter capital lease 401,264 - (129,361) 271,903 133,706 Total Direct Borrowings: 2,282,127 - (230,637) 2,051,490 238,000 Compensated absences 171,658 189,841 (184,366) 177,133 90,145 Total business-type activities debt 2,453,785 189,841 (415,003) 2,228,623 328,145 Total long-term debt $ 570,156 5,560,974 $ (1,068,180) $ 5,062,950 $ 841,544 $
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
47 NOTE 8 – LONG-TERM DEBT (Continued)
The liability for compensated absences will be liquidated by the fund in which the employees’ salaries are charged. The governmental activities liability is made up of 95% in the general fund and 5% in the Gas Tax fund.
Long-term debt at June 30, 2021 was comprised of the following individual issues:
A. Governmental Activities
Kingsburg Joint Powers Authority Refunding Revenue Bonds, Series 2015 – On April 28, 2015, the City issued $1,439,100 in direct placement revenue bonds with interest rate of 2.85% payable semi-annually. The bonds were to refund $945,000 of outstanding Kingsburg Public Finance Authority Revenue Bonds, Series 1991 and $1,215,000 of outstanding Kingsburg Public Finance Authority Revenue Bonds, Series 1992. These bonds are payable from assessments on the property owners within the district and are payable from other funds of the City. The principal payments range from $162,400 to $250,500 and are due annually through fiscal year 2023.
At June 30, 2021 bonds outstanding amount to $409,600.
There is a provision in the note whereby in an event of default the Kingsburg Joint Powers Authority, with written consent by the insurer, may declare the unpaid principal and accrued interest and related expenses to be due and payable immediately if the City is unable to make payment.
Annual debt service requirements to maturity for Kingsburg Joint Powers Authority Refunding Revenue Bonds, Series 2015 at June 30, 2021 are as follows:
Fiscal Year Ending Principal Interest Total
2022 159,100 $ 9,406 $ 168,506 $
2023 3,570 250,500 254,070
Total 409,600 $ 12,976 $ 422,576 $
Kingsburg Public Joint Powers Authority 2004 Lease Revenue Bonds, Fire Department Facilities – On August 1, 2004, the City issued $3,395,000 in revenue bonds to construct a new satellite fire/ambulance station and to remodel the current station. On May 14, 2015, the City issued Kingsburg Joint Powers Authority 2015 Lease Revenue Refunding Bonds, Fire Department Facilities Refunding Project to refund the outstanding amount of $2,685,000.
Kingsburg Joint Powers Authority 2015 Lease Revenue Refunding Bonds, Fire Department Facilities Refunding Project – On May 14, 2015, the City issued $2,700,000 in direct borrowing lease revenue bonds with interest rates range from 2.0% to 3.5% payable semi-annually. The bonds were to refund $2,685,000 of outstanding Kingsburg Public Financing Authority 2004 Lease Revenue Bonds, Fire Department Facilities.
These bonds are payable from fees for ambulance services. The principal payments in amounts from $125,000 to $850,000 are due annually through fiscal year 2034. At June 30, 2021 bonds outstanding amount to $1,975,000.
There is a provision in the bond agreement whereby in an event of default the Kingsburg Joint Powers Authority, with written consent by the insurer, may declare the unpaid principal and accrued interest and related expenses to be due and payable immediately if the City is unable to make payment.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
48 NOTE 8 – LONG-TERM DEBT (Continued)
A. Governmental Activities (Continued)
Annual debt service requirements to maturity for Kingsburg Joint Powers Authority 2015 Lease Revenue Refunding Bonds, Fire Department Facilities Refunding Project are as follows:
Fiscal Year Ending Principal Interest Total
2022 130,000 $ 60,287 $ 190,287 $
2023 56,388 130,000 186,388
2024 52,413 135,000 187,413
2025 48,637 140,000 188,637
2026-2030 180,481 750,000 930,481
2031-2034 49,175 690,000 739,175
447,381 1,975,000 2,422,381
Unamortized Bonds Discount - (14,010) (14,010)
Total $ 447,381 1,960,990 $ 2,408,371 $
Police Vehicles Capital Lease – On August 12, 2015, the City, as Lessee entered into a capital equipment lease/purchase agreement with Leasource Financial Service, Inc., as Lessor, for purchase of two police vehicles. The agreement bears interest at 3.429% with quarterly payments of $4,370. At June 30, 2021 the capital lease was completely paid off.
The lease agreements are secured by the leased vehicles and include provisions whereby in an event of default the lessor can demand immediate payment of the outstanding principal and interest, or that the City return the leased vehicles at the cost of the City.
B. Business-Type Activities
CIEDB Water Loan – On August 31, 2004, the City, as purchaser, entered into an installment sale agreement with the California Infrastructure and Economic Development Bank (CIEDB), as seller, of a water system upgrade. As part of the agreement, CIEDB agreed to design, acquire and construct the project for, and sell the project to, the purchaser. In order to implement these provisions, the CIEDB appointed the City as its agent for the purpose of such design, acquisition and construction. The City has pledged all net system revenues to repay the CIEDB Loan. The agreement after the 2011 amendment, in the amount not to exceed $3,147,396, bears interest at 2.98% with semi-annual payments on August 1 and February 1. Under the terms of the agreement, CIEDB issued tax-exempt bonds to be used for the funding of the project. At June 30, 2021, the loan outstanding amounts to $1,779,587.
There is a provision in the loan agreement whereby in an event of default the CIEDB may declare the unpaid principal and accrued interest and related expenses to be due and payable immediately if the City is unable to make payment or if the City seeks reorganization or arrangement under federal or state bankruptcy laws.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
49 NOTE 8 – LONG-TERM DEBT (Continued)
B. Business-Type Activities (Continued)
Annual debt service requirements for the CIEDB Water Loan are as follows:
Fiscal Year Ending Principal Interest Total
2022 $ 51,478 104,294 $ 155,772 $
2023 107,402 48,323 155,725
2024 110,602 45,076 155,678
2025 113,898 41,730 155,628
2026 117,293 38,286 155,579
2027-2031 641,022 136,054 777,076
2032-2035 35,510 585,076 620,586
$ 396,457 1,779,587 $ 2,176,044 $
Water Meter Capital Lease – On September 27, 2012, the City, as Lessee entered into a capital equipment lease/purchase agreement with the Government Capital Corporation, as Lessor, for purchase and installation of 1,800 water meters. The agreement bears interest at 3.36% with annual payments of $142,839 on September 1st. At June 30, 2021, the capital lease outstanding amounts to $271,903.
The lease agreement is secured by the leased meters and include provisions whereby in an event of default the lessor can demand immediate payment of the outstanding principal and interest, or that the City return the leased meters at the cost of the City.
Annual debt service requirements for the Water Meter Capital Lease are as follows:
Fiscal Year Ending Principal Interest Total
2022 133,706 9,133 142,839
2023 4,642 138,197 142,839
$ 13,775 271,903 $ 285,678 $
Leased equipment under capital leases in capital assets at June 30, 2021, included the following:
Water meters $ 1,660,689
Less: Accumulated depreciation (774,989)
Water meters, net of depreciation $ 885,700
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
50 NOTE 9 – DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has a loss on refunding of debt reported in the government-wide statement of net position. A loss on refunding of debt results from the difference in the carrying value of the refunded debt and its reacquisition price. The amount is amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows of resources for loss on refunding of debt reported in the governmental activities of the government-wide statement of net position are $51,175.
In addition to the deferred outflows and inflows of resources described above, the City has pension related items that qualify to be reported in these categories. The pension related deferred outflows and inflows of resources are described in detail in Note 10.
NOTE 10 – PENSION PLAN
A. General Information about the Pension Plans
Plan Description – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple-Employer Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City of Kingsburg’s (City) sponsors six rate plans (two miscellaneous and four safety.) Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 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 the Plan are applied as specified by the Public Employees’ Retirement Law.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
51 NOTE 10 – PENSION PLAN (Continued)
A. General Information about the Pension Plans (Continued) The Plans’ provisions and benefits in effect at June 30, 2021 are summarized as follows:
Miscellaneous Miscellaneous
1st Tier PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.000% 6.750%
Required employer contribution rates 10.484% 7.732%
Safety - Police Safety - Police
1st Tier PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 13.000%
Required employer contribution rates 20.585% 13.044%
Safety - Fire Safety - Fire
1st Tier PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 13.000%
Required employer contribution rates 20.585% 13.044%
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $606,549 for the fiscal year ended June 30, 2021.
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public employers are 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. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
The City’s contributions to the plan recognized as a part of pension expense for the year ended June 30, 2021 were $1,902,272.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
52 NOTE 10 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $7,363,580.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.
The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2019 and 2020 was as follows:
Proportion - June 30, 2019 0.0752%
Proportion - June 30, 2020 0.0677%
Change - Increase (Decrease) -0.0075%
For the year ended June 30, 2021, the City recognized pension expense of $1,467,892. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,124,362 $ - $ Changes in assumptions - 34,524
Differences between actual and expected experience 502,610 - Net differences between project and actual earnings on
plan investments - 181,005
Change in employer's proportion 2,382 595,488
Differences between the employer's actual contributions and the employer's proportionate share of contributions 722,043 7,995 Total 2,532,402 $ 638,007 $
$1,124,362 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
June 30
2022 $185,536
2023 280,674
2024 215,306
2025 88,517
2026 -
Thereafter -
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
53 NOTE 10 – PENSION PLAN (Continued)
C. Actuarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CalPERS specific data.
The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016.
2.75%
Varies by Entry Age and Service
7.15%(1)
Derived using CalPERS' Membership Data
for all Funds(2)
Depending on age, service and type of employment
June 30, 2019
June 30, 2020
Entry- Age Normal Cost Method
7.15%
2.50%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experiences Study can be found on the CalPERS website.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
54 NOTE 10 – PENSION PLAN (Continued)
D. Discount Rate
The discount rate used to measure the total pension liability was 7.15%. 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.
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 as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both shortterm and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
Asset Class (a)
New Strategic
Allocation
Real Return
Years 1-10(b)
Real Return
Years 11+(c)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(b) An expected inflation of 2.00% used for this period (c) An expected inflation of 2.92% used for this period (a) In the CalPERS ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
55 NOTE 10 – PENSION PLAN (Continued)
D. Discount Rate (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Discount Rate -1%
6.15%
Current Discount
Rate 7.15%
Discount Rate +1%
8.15%
$11,143,564 $7,363,580 $4,253,098
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
F. Payable to the Pension Plan
The City had an outstanding amount of contributions payable to the pension plan in the amount of $101,053 for the year ended June 30, 2021.
NOTE 11 – POST-RETIREMENT HEALTHCARE BENEFITS
The City provides no post-employment benefits for its employees. However, former employees may be maintained on the City’s health insurance programs through the City’s Consolidated Omnibus Budget Reconciliation Act (COBRA) insurance continuation plan.
NOTE 12 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omission; injuries to employees and others; natural disaster. The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.
Each member city self-insures a portion of each of its claims, which for Kingsburg is the first $25,000 of each claim (occurrence) in the liability program and $50,000 in the workers’ compensation program. If a claim exceeds a member’s retained limit, the amount exceeding the retained limit is distributed to the pool layers above the city’s retained limit, and that cost is shared amongst the members with the various pool layers.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
56 NOTE 12 – RISK MANAGEMENT (Continued)
For the Liability Program, the CSJVRMA’s risk sharing pool covers the first $1,000,000 of each claim. The CSJVRMA participates in an excess pool, the California Affiliated Risk Management Authorities (CARMA) that provides excess liability coverage in excess of $1,000,000. CARMA’s risk sharing pool covers the first $4,000,000 of each claim and CARMA purchases a combination of reinsurance and excess insurance through Allied World National Assurance Company for a total of $39,000,000 in coverage.
For the Workers’ Compensation Program, the CSJVRMA’s risk sharing pool covers the first $500,000 of each claim. The CSJVRMA purchases excess workers’ compensation coverage through the Local Agency Workers’ Compensation Excess JPA (LAWCX) for the amount in excess of $500,000. LAWCX’s risk sharing pool covers the first $5 million of each claim, and LAWCX purchases a combination of reinsurance and excess insurance through PRISM (previously CSAC-EIA) with statutory limits.
The Central San Joaquin Valley Risk Management Authority is a consortium of fifty-four (54) cities in the San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et. Seq. The Central San Joaquin Valley Risk Management Authority is governed by a Board of Directors, which meets three times per year, and consists of one member appointed by each member city. A management group employed by CSJVRMA handles the day-to-day business.
The summary financial position and results of operations for CSJVRMA, as of June 30, 2021, is presented as follows:
Total assets $ 150,621,596
Total liabilities 129,774,819
Total net position $ 20,846,777
Revenues $ 55,391,674
Expenses 54,309,239
Change in net position $ 1,082,435
At the terminations of the joint venture agreement and after all claims have been settled, any excess or deficit will be divided among the cities in proportion to the aggregate amount of contribution made by each.
NOTE 13 – CONTINGENCIES
The City participates in a number of Federal and State assisted grant programs which are subject to financial and compliance audits. Audits for these programs and the respective findings are to be determined at a future date, and the City expects the amount, if any, of the expenditures which may be disallowed by the granting agency to be immaterial.
The City is subject to litigation arising in the normal course of business. In the opinion of the City attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.
On March 11, 2020 the World Health Organization declared the outbreak of coronavirus (COVID-19) a pandemic. Accordingly, some functions of the City’s operations have been limited to protect the health and safety of its employees. The financial impact that could occur as a result of the pandemic is unknown at this time.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
57 NOTE 14 – RESTATEMENT OF BEGINNNING NET POSITION BALANCE During the year ended June 30, 2021 the City identified an overstatement of net position in the Ambulance/Fire fund due to prior year revenues that were improperly recognized. This had the effect of overstating opening net position by $64,369 in the Ambulance fund and Business-Type Activities. A summary of the restatement has been included below.
Government-Wide
Business-Type
Activities Ambulance/Fire
$ (288,585) 9,982,419 $
Prior period adjustment:
Overstatement of revenue (64,369) (64,369)
$ (352,954) 9,918,050 $
Net position, June 30, 2020, as previously
reported
Net position, July 1, 2020, as restated
Enterprise Fund
NOTE 15 – FUND RECLASSIFICATION
During the year ended June 30, 2021 the City made the determination the Transient Oriented Development fund, previously classified as a nonmajor special revenue fund, was more appropriately reported within the Measure C fund. Opening fund balance of $9,200 and related assets for the Transient Oriented Development fund have been incorporated to reflect as Measure C as of July 1, 2020.
NOTE 16 – SUCCESSOR AGENCY TRUST FUND
On January 18, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with Assembly Bill 1X26 (the “Bill”) which dissolved all redevelopment agencies in the State of California.
Under the control of an oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution of the redevelopment agency (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
Successor agencies are only allocated revenue in the amount that is necessary to pay estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue favorably for the City.
CITY OF KINGSBURG
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
58 NOTE 16 – SUCCESSOR AGENCY TRUST FUND (Continued)
After the date of the dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
Other Assets
The amount reported as "Other Assets" in the Successor Agency Trust Fund consists of the following:
Downtown directional signs $ 17,266
$ 17,266
Long-term Debt
Long-term debt reported in the Successor Agency Trust Fund at June 30, 2021 was comprised of the following individual issue:
Balance Balance Due Within
July 1, 2020 Additions Retirements June 30, 2021 One Year Kingsburg RDA Tax Refunding Bonds $ - 115,000 $ 35,000 $ 80,000 $ 35,000 $ $ - 115,000 $ 35,000 $ 80,000 $ 35,000 $
Kingsburg RDA Tax Refunding Bonds – The former Kingsburg Redevelopment Agency issued a tax allocation bond payable in annual installments ranging from $25,000 to $40,000 with interest payable semiannually at an average overall rate of 7.9% per annum. At June 30, 2021 the bond outstanding amounts to $80,000.
Annual debt service requirements to maturity for the Kingsburg RDA Tax Refunding Bonds are as follows:
Fiscal Year Ending Principal Interest Total
2022 40,000 $ 4,740 $ 44,740 $
2023 40,000 1,580 41,580
Total $ 6,320 80,000 $ 86,320 $
59 REQUIRED SUPPLEMENTARY INFORMATION
60 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,564,440 3,068,610 $ 3,784,541 $ 220,101 $
Licenses and permits 565,900 312,900 564,818 (1,082)
Intergovernmental 1,199,000 1,050,000 1,336,839 137,839 Charges for services 299,480 312,280 321,432 21,952
Fines and penalties 12,250 12,250 5,023 (7,227)
Development fees 581,450 115,450 563,351 (18,099)
Other revenue 174,910 123,910 211,976 37,066
Total revenues 6,397,430 4,995,400 6,787,980 390,550
EXPENDITURES
Current:
General government:
City council 30,250 30,250 23,378 6,872
City attorney 87,168 87,168 58,492 28,676
Non-departmental 300,622 497,622 379,253 118,369
City manager 241,818 241,818 222,321 19,497
City clerk 147,705 147,705 140,326 7,379
Finance 191,895 204,680 200,541 4,139
Human resources/management assistant 117,768 109,768 122,698 (4,930) Total general government 1,327,011 1,109,226 1,147,009 180,002 Parks and community services:
Community services 240,568 166,233 180,677 (14,444)
Pool 195,409 156,759 212,895 (17,486)
Total parks and community services 361,642 397,327 393,572 (31,930) Public safety 2,721,452 2,651,452 2,688,708 32,744
Public works:
Public works - administration 58,071 58,071 60,453 (2,382) Landscape maintenance 282,367 294,551 292,030 2,521
Facility maintenance 58,334 58,334 62,523 (4,189)
Vehicle maintenance 148,814 148,814 149,777 (963)
Total public works 559,770 547,586 564,783 (5,013)
Planning and community development 494,033 336,033 536,503 (42,470) Capital outlay 402,000 352,000 308,656 93,344
Debt service:
Principal 4,333 4,333 4,333 -
Interest and fiscal charges 37 37 22 15
Total debt service 4,370 4,370 4,355 15
Total expenditures 5,397,994 5,870,278 5,643,586 226,692 Excess (deficiency) of revenues over
(under) expenditures (402,594) 527,152 1,144,394 617,242
OTHER FINANCING SOURCES (USES)
Transfers in (911,568) (911,568) 150,000 1,061,568
Transfers out (380,000) (380,000) (355,000) 25,000
Total other financing sources (uses) (1,291,568) (1,291,568) (205,000) 1,086,568 Change in fund balance $ (764,416) (1,694,162) $ 939,394 $ 1,703,810 Fund balance - beginning 5,152,461
Fund balance - ending $ 6,091,855
Budgeted Amounts
61 CITY OF KINGSBURG
SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL TRANSPORTATION FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 209,606 413,735 $ 210,053 $ 447 $
Use of money and property 20,687 20,687 8,825 (11,862)
Total revenues 230,293 434,422 218,878 (11,415)
EXPENDITURES
Current:
Highway and streets 102,500 102,500 68,011 34,489
Capital outlay 486,070 486,070 220,217 265,853
Total expenditures 588,570 588,570 288,228 300,342
Excess (deficiency) of revenues over
(under) expenditures $ (358,277) (154,148) $ (69,350) $ 288,927 Fund balance - beginning 1,503,271
Fund balance - ending $ 1,433,921
62 CITY OF KINGSBURG
SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE E FUND
FOR THE YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,267,000 1,550,000 $ 2,313,063 $ 46,063 $
Use of money and property - - 3,334 3,334
Other revenues - - 397 397
Total revenues 2,267,000 1,550,000 2,316,794 49,794
EXPENDITURES
Current:
Public safety 1,052,093 1,140,817 1,069,537 71,280
Capital outlay 507,350 430,500 487,852 19,498
Total expenditures 1,648,167 1,482,593 1,557,389 90,778 Excess (deficiency) of revenues over
(under) expenditures $ 618,833 67,407 $ 759,405 $ 140,572 Fund balance - beginning 605,538
Fund balance - ending $ 1,364,943
63 CITY OF KINGSBURG
PROPORTIONATE SHARE OF NET PENSION LIABILTY
FOR THE YEAR ENDED JUNE 30, 2021
LAST 10 YEARS*
2015 2016 2017 2018 2019 2020 2021
Proportion of the net pension liability 0.0890% 0.0811% 0.0756% 0.0743% 0.0753% 0.0752% 0.0677% Proportionate share of the net pension liability 5,591,747 $ 5,568,697 $ 6,544,355 $ 7,365,800 $ 7,256,090 $ 7,706,149 $ 7,363,580 $ Covered payroll 2,539,694 $ 2,746,794 $ 2,823,084 $ 2,997,055 $ 3,175,012 $ 3,358,370 $ 3,784,976 $ Proportionate share of the net pension liability as
percentage of covered payroll 220.17% 202.73% 231.82% 245.77% 228.54% 229.46% 194.55% Plan fiduciary net position as a percentage of the
total pension liability 79.48% 80.20% 75.41% 73.93% 75.45% 74.98% 77.03%
NOTES TO THE SCHEDULE
Changes in Benefit Terms - None
*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.
Changes of Assumptions - None
64 CITY OF KINGSBURG
SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 30, 2021
LAST 10 YEARS*
2014 2015 2016 2017 2018 2019 2020 2021
Actuarially required contribution (actuarially determined) $ 574,035 541,072 $ 658,448 $ 732,726 $ 795,513 $ 886,480 $ 1,902,272 $ 1,124,362 $ Contributions in relation to the actuarially determined contributions 574,035 541,072 658,448 732,726 795,513 886,480 1,902,272 1,124,362 Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ Covered payroll 2,539,694 $ 2,746,794 $ 2,823,084 $ 2,997,055 $ 3,175,012 $ 3,358,370 $ 3,784,976 $ 4,006,934 $ Contributions as a percentage of covered-employee
payroll 21.30% 20.90% 23.32% 24.45% 25.06% 26.40% 50.26% 28.06% *Schedule is intended to show information for ten years. Additional years will be displayed as they become available. 65 CITY OF KINGSBURG
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
NOTE 1 – BUDGETARY DATA
The appropriated budget is prepared by fund, department, and account. The City of Kingsburg, California’s (the City) department heads may make transfers of appropriations within a department. The City Manager is authorized to make budget transfers between departments within funds. All revisions must be reported to the City Council. Transfer of appropriations between funds requires the approval of the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level.
All annual appropriations lapse at fiscal year-end to the extent they have not been expended.
The actual results of operations compared to the appropriations adopted by the City Council for budgeted major governmental funds are included in the fund financial statements. The comparisons of actual results with budget for nonmajor funds are presented as supplemental information in the combining schedules.
The budget is reported on the same basis as the fund types and on a basis consistent with accounting principles generally accepted in the United States of America. Additional appropriations or other changes during the fiscal year may be submitted by the department for Council review and approval.
NOTE 2 – EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The City incurred expenditures in excess of appropriations in the following amounts for the year ended June 30, 2021:
General Fund:
General government:
Human resources/management assistant $ 4,930
Parks and community services:
Community services 14,444
Pool 17,486
Public works:
Public works - administration 2,382
Facility maintenance 4,189
Vehicle maintenance 963
Planning and community development 42,470
66 THIS PAGE IS LEFT BLANK INTENTIONALLY.
67 COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
68 THIS PAGE IS LEFT BLANK INTENTIONALLY.
69 NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted, committed, or assigned to expenditures for particular purposes.
Measure C Fund – to account for apportioned local sales tax revenues to be used exclusively for maintenance and improvement of the City’s streets and roads.
Gas Tax Fund – to account for revenues and expenditures apportioned to the City under the Streets and Highway Code, Sections 2105, 2106, 2107 and 2107.5 of the State of California. Expenditures for administration, maintenance and construction must be street related.
Senior Center Fund - to account for revenue from federal grants and contributions to fund the activities of the senior center services. The services provide recreational, educational, social and nutritional programs to citizens 55 years and older.
COPS Grant Fund – to account for State revenue received from front line law enforcement.
San Joaquin Valley Air Grant Fund – to account for grant revenue received for the purchase of a police vehicle.
Low and Moderate Income Housing Fund - to administer the housing assets and functions related to the Low and Moderate Income Housing Program retained by the City following the dissolution of the Redevelopment Agency on February 1, 2012. This fund is primarily funded by loan repayment program income generated from the former Redevelopment Agency’s housing assets.
Vehicle Abandonment Fund – to account for the abandoned vehicle abatement program in which the City receives funds from the Council of Fresno County Governments. These funds will be used to abate any abandoned vehicles in the City of Kingsburg.
ACT Task Force Grant Fund - to be used to compensate the cost of one Police Officer for the assignment to the ACT (Adult Compliance Team).
School Resource Officer Fund – This fund is for the School Resource Officer Grant which is used to compensate the cost of one Police Officer for the assignment to the Schools Resource Officer.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.
Assessment District Fund – to accumulate assessments levied for payment of bonds issued for the Improvement Bonds in Districts No. 1991-1 and No. 1992-1.
70 NONMAJOR GOVERNMENTAL FUNDS
(Continued)
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are used to account for financial resources that are restricted, committed or assigned to expenditures for the acquisition of land or acquisition and construction of major facilities other than those financed in the proprietary fund types.
Street Projects Fund – to account for related street construction and maintenance.
Sewer Connection Fund - to account for the sewer connection fees from developers. The money is used to construct sewer facilities within the City limits.
Storm Drain Fund – to account for the storm drain improvements, operations and maintenance. The activities of the fund include building new storm drains and obtaining storm drains completed by developers.
Parks and Recreation Fund – to account for the revenue from the construction assessments to be used for acquisition and development of parks and recreation facilities.
Equipment Replacement Fund – to account for the transfer revenues received for the reserve fund to replace equipment in the future.
71 CITY OF KINGSBURG
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Special
Revenue Funds
Debt Service
Funds
Capital
Projects Funds
Total Nonmajor
Governmental
Funds
ASSETS
Cash and investments 1,036,488 $ 141,975 $ 2,091,066 $ 3,269,529 $ Receivables 216,577 1,989 262,220 480,786
Land held for low and moderate housing projects - 574,389 - 574,389 Total assets $ 143,964 1,827,454 $ 2,353,286 $ 4,324,704 $
LIABILITIES
Accounts payable and accrued expenses $ - 186,772 $ 81,622 $ 268,394 $ Due to other funds - 240,789 204,540 445,329
Deposits - 609 - 609
Advances from other funds 197,000 - - 197,000
Total liabilities 197,000 428,170 286,162 911,332
FUND BALANCES
Restricted:
Capital improvements - - 2,092,678 2,092,678
Circulation improvements - 819,897 - 819,897
Public safety programs - 242,247 - 242,247
Land held for low and moderate
housing projects - 574,389 - 574,389
Unassigned (237,249) (53,036) (25,554) (315,839)
Total fund balances (53,036) 1,399,284 2,067,124 3,413,372 Total liabilities and fund balances $ 143,964 1,827,454 $ 2,353,286 $ 4,324,704 $
72 CITY OF KINGSBURG
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special
Revenue Funds
Debt Service
Funds
Capital
Projects Funds
Total Nonmajor
Governmental
Funds
REVENUES
Taxes $ 143,660 - $ - $ 143,660 $
Intergovernmental - 1,405,453 179,024 1,584,477
Development fees - - 281,135 281,135
Use of money and property 3,562 - 10,572 14,134
Other revenues - 30,493 - 30,493
Total revenues 143,660 1,439,508 470,731 2,053,899
EXPENDITURES
Current:
Parks and community services 193,720 - - 193,720
Public safety 296,437 - - 296,437
Highway and streets 480,912 - - 480,912
Planning and community
development - 61,200 - 61,200
Capital outlay 540,234 - 297,172 837,406
Debt service:
Interest and fiscal charges 34,291 - - 34,291
Total expenditures 34,291 1,572,503 297,172 1,903,966
Excess (deficiency) of revenues over
(under) expenditures (132,995) 109,369 173,559 149,933
OTHER FINANCING SOURCES (USES)
Transfers in 55,000 - - 55,000
Transfers out (150,000) - - (150,000)
Total other financing sources (uses) - (95,000) - (95,000) Net change in fund balances 109,369 (227,995) 173,559 54,933 Fund balances - beginning (162,405) 1,627,279 1,893,565 3,358,439 Fund balances - ending $ (53,036) 1,399,284 $ 2,067,124 $ 3,413,372 $
73 CITY OF KINGSBURG
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2021
Measure C Gas Tax
Senior
Center
COPS
Grant
San Joaquin
Valley Air
Grant
Low and
Moderate
Income
Housing
Asset
ASSETS
Cash and investments $ 290,566 517,893 $ - $ 180,162 $ 21 $ - $ Receivables 143,192 23,545 - - - -
Land held for low and moderate housing projects - - - - - 574,389 Total assets $ 314,111 661,085 $ - $ 180,162 $ 21 $ 574,389 $
LIABILITIES
Accounts payable and accrued expenses 145,375 $ 9,924 $ 12,284 $ - $ - $ - $ Due to other funds - - 54,092 - - -
Deposits - - 609 - - -
Total liabilities 9,924 145,375 66,985 - - -
FUND BALANCES
Restricted:
Circulation improvements 304,187 515,710 - - - -
Public safety - - - 180,162 21 -
Land held for low and moderate
housing projects - - - - - 574,389
Unassigned - - (66,985) - - -
Total fund balances 304,187 515,710 (66,985) 180,162 21 574,389 Total liabilities and fund balances $ 314,111 661,085 $ - $ 180,162 $ 21 $ 574,389 $
74 CITY OF KINGSBURG
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2021
(Continued)
Vehicle
Abandonment
ACT Task
Force Grant
School
Resource
Officer Total
ASSETS
Cash and investments $ 31,220 16,626 $ - $ 1,036,488 $
Receivables - 27,779 216,577 22,061
Land held for low and moderate housing projects - - - 574,389 Total assets $ 58,999 16,626 $ 22,061 $ 1,827,454 $
LIABILITIES
Accounts payable and accrued expenses - $ 13,561 $ 5,628 $ 186,772 $ Due to other funds - - 186,697 240,789
Deposits - - - 609
Total liabilities 13,561 - 192,325 428,170
FUND BALANCES
Restricted:
Circulation improvements - - - 819,897
Public safety 45,438 16,626 - 242,247
Land held for low and moderate
housing projects - - - 574,389
Unassigned - - (170,264) (237,249)
Total fund balances 16,626 45,438 (170,264) 1,399,284
Total liabilities and fund balances $ 58,999 16,626 $ 22,061 $ 1,827,454 $
75 CITY OF KINGSBURG
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Measure C Gas Tax
Senior
Center
COPS
Grant
San Joaquin
Valley Air
Grant
Low and
Moderate
Income
Housing
Asset
REVENUES
Intergovernmental $ 501,717 540,316 $ 73,007 $ 156,727 $ - $ - $ Use of money and property 1,557 2,005 - - - -
Other revenues 30,493 - - - - -
Total revenues 534,215 541,873 73,007 156,727 - -
EXPENDITURES
Current:
Parks and community services - - 193,720 - - -
Public safety - - - - - -
Highway and streets 159,130 321,782 - - - -
Planning and community
development - 61,200 - - - -
Capital outlay 350,082 190,152 - - - -
Total expenditures 671,864 410,482 193,720 - - -
Excess (deficiency) of revenues over
(under) expenditures (137,649) 131,391 (120,713) 156,727 - -
OTHER FINANCING SOURCES/(USES)
Transfers in - - 55,000 - - -
Transfers out - - - (150,000) - -
Total other financing sources (uses) - - 55,000 (150,000) - - Net change in fund balances (137,649) 131,391 (65,713) 6,727 - - Fund balances - beginning 441,836 384,319 (1,272) 173,435 21 574,389 Fund balances - ending $ 304,187 515,710 $ (66,985) $ 180,162 $ 21 $ 574,389 $
76 CITY OF KINGSBURG
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(Continued)
Vehicle
Abandonment
ACT Task
Force Grant
School
Resource
Officer Total
REVENUES
Intergovernmental $ 133,195 - $ 491 $ 1,405,453 $
Use of money and property - - - 3,562
Other revenues - - - 30,493
Total revenues 133,195 - 491 1,439,508
EXPENDITURES
Current:
Parks and community services - - - 193,720
Public safety - 125,682 170,755 296,437
Highway and streets - - - 480,912
Planning and community
development - - - 61,200
Capital outlay - - - 540,234
Total expenditures 125,682 - 170,755 1,572,503
Excess (deficiency) of revenues over
(under) expenditures 7,513 - (170,264) (132,995)
OTHER FINANCING SOURCES/(USES)
Transfers in - - - 55,000
Transfers out - - - (150,000)
Total other financing sources (uses) - - - (95,000)
Net change in fund balances 7,513 - (170,264) (227,995) Fund balances - beginning 37,925 16,626 - 1,627,279
Fund balances - ending $ 45,438 16,626 $ (170,264) $ 1,399,284 $
77 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUND – MEASURE C FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 616,426 531,218 $ 540,316 $ (76,110) $ Use of money and property - - 1,557 1,557
Total revenues 616,426 531,218 541,873 (74,553)
EXPENDITURES
Current:
Highway and streets 210,500 210,500 159,130 51,370
Planning and community
development 147,800 147,800 61,200 86,600
Capital outlay 220,000 201,000 190,152 29,848
Total expenditures 578,300 559,300 410,482 167,818
Excess (deficiency) of revenues over
(under) expenditures $ (28,082) 38,126 $ 131,391 $ 93,265 Fund balance - beginning 384,319
Fund balance - ending $ 515,710
Budgeted Amounts
78 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUND – GAS TAX FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 537,217 502,897 $ 501,717 $ (35,500) $ Use of money and property - - 2,005 2,005
Other revenues - - 30,493 30,493
Total revenues 537,217 502,897 534,215 (3,002)
EXPENDITURES
Current:
Highway and streets 308,122 308,122 321,782 (13,660)
Capital outlay 350,082 234,000 350,082 -
Total expenditures 658,204 542,122 671,864 (13,660)
Excess (deficiency) of revenues over
(under) expenditures $ (39,225) (120,987) $ (137,649) $ (16,662) Fund balances - beginning 441,836
Fund balances - ending $ 304,187
Budgeted Amounts
79 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUND – SENIOR CENTER FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 78,000 6,000 $ 73,007 $ (4,993) $
Other revenues 4,000 - - -
Total revenues 78,000 10,000 73,007 (4,993)
EXPENDITURES
Current:
Parks and community services 178,174 74,174 193,720 (15,546) Total expenditures 178,174 74,174 193,720 (15,546)
Excess (deficiency) of revenues over
(under) expenditures (64,174) (100,174) (120,713) (20,539)
OTHER FINANCING SOURCES/(USES)
Transfers in 75,000 75,000 55,000 (20,000)
Net change in fund balances $ (25,174) 10,826 $ (65,713) $ (40,539) Fund balances - beginning (1,272)
Fund balances - ending $ (66,985)
Budgeted Amounts
80 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUND – COPS GRANT FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 150,000 150,000 $ 156,727 $ 6,727 $ Total revenues 150,000 150,000 156,727 6,727
EXPENDITURES
Current:
Public safety - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
(under) expenditures 150,000 150,000 156,727 6,727
OTHER FINANCING SOURCES/(USES)
Transfers out (150,000) (150,000) (150,000) -
Net change in fund balances $ - - $ 6,727 $ 6,727
Fund balances - beginning 173,435
Fund balances - ending $ 180,162
Budgeted Amounts
81 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUND – ACT TASK FORCE GRANT FUND FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 120,764 120,764 $ 133,195 $ 12,431 $ Total revenues 120,764 120,764 133,195 12,431
EXPENDITURES
Current:
Public safety 120,764 120,764 125,682 (4,918)
Capital outlay - - - -
Total expenditures 120,764 120,764 125,682 (4,918)
Excess (deficiency) of revenues over
(under) expenditures $ - - $ 7,513 $ 7,513
Fund balances - beginning 37,925
Fund balances - ending $ 45,438
Budgeted Amounts
82 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUND – SCHOOL RESOURCE OFFICER FUND FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 70,000 171,403 $ 491 $ (69,509) $
Total revenues 70,000 171,403 491 (69,509)
EXPENDITURES
Current:
Public safety 171,403 171,403 170,755 648
Total expenditures 171,403 171,403 170,755 648
Excess (deficiency) of revenues over
(under) expenditures $ (101,403) - $ (170,264) $ (70,157) $ Fund balances - beginning -
Fund balances - ending $ (170,264)
Budgeted Amounts
83 CITY OF KINGSBURG
COMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
JUNE 30, 2021
Assessment
District
ASSETS
Cash and investments $ 141,975
Receivables 1,989
Total assets $ 143,964
LIABILITIES
Advances from other funds $ 197,000
Total liabilities 197,000
FUND BALANCES
Unassigned (53,036)
Total fund balances (53,036)
Total liabilities and fund balances $ 143,964
84 CITY OF KINGSBURG
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Assessment
District
REVENUES
Taxes $ 143,660
Total revenues 143,660
EXPENDITURES
Debt service:
Interest and fiscal charges 34,291
Total expenditures 34,291
Excess (deficiency) of revenues over
(under) expenditures 109,369
Fund balances - beginning (162,405)
Fund balances - ending $ (53,036)
85 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR DEBT SERVICE FUND – ASSESSMENT DISTRICT FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 163,000 163,000 $ 143,660 $ (19,340) $
Total revenues 163,000 163,000 143,660 (19,340)
EXPENDITURES
Debt service:
Interest and fiscal charges 34,012 34,012 34,291 (279)
Total expenditures 34,012 34,012 34,291 (279)
Excess (deficiency) of revenues over
(under) expenditures $ 128,988 128,988 $ 109,369 $ (19,619) Fund balances - beginning (162,405)
Fund balances - ending $ (53,036)
Budgeted Amounts
86 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
MAJOR DEBT SERVICE FUND – KINGSBURG JOINT POWERS AUTHORITY FUND FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Use of money and property $ 110,000 110,000 $ 76,803 $ (33,197) $ Total revenues 110,000 110,000 76,803 (33,197)
EXPENDITURES
Debt service:
Principal 161,300 161,300 286,300 (125,000)
Interest and fiscal charges 18,922 18,922 82,410 (63,488) Total expenditures 180,222 180,222 368,710 (188,488)
Excess (deficiency) of revenues over
(under) expenditures $ (70,222) (70,222) $ (291,907) $ (221,685) Fund balances - beginning 2,595,440
Fund balances - ending $ 2,303,533
Budgeted Amounts
87 CITY OF KINGSBURG
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2021
Street Projects
Sewer
Connection Storm Drain
Parks and
Recreation
Equipment
Replacement Total
ASSETS
Cash and investments $ 1,341,133 - $ 301,580 $ 422,923 $ 25,430 $ 2,091,066 $ Receivables 260,608 1,054 269 289 - 262,220
Total assets $ 1,342,187 260,608 $ 301,849 $ 423,212 $ 25,430 $ 2,353,286 $
LIABILITIES
Accounts payable and accrued expenses 81,622 $ - $ - $ - $ - $ 81,622 $ Due to other funds - 204,540 - - - 204,540
Total liabilities - 286,162 - - - 286,162
FUND BALANCES
Restricted:
Capital improvements - 301,849 1,342,187 423,212 25,430 2,092,678 Unassigned - (25,554) - - - (25,554)
Total fund balances 1,342,187 (25,554) 301,849 423,212 25,430 2,067,124 Total liabilities and fund balances $ 1,342,187 260,608 $ 301,849 $ 423,212 $ 25,430 $ 2,353,286 $
88 CITY OF KINGSBURG
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Street Projects
Sewer
Connection Storm Drain
Parks and
Recreation
Equipment
Replacement Total
REVENUES
Intergovernmental $ - 179,024 $ - $ - $ - $ 179,024 $
Development fees - 112,959 110,250 57,926 - 281,135
Use of money and property 7,211 - 1,419 1,942 - 10,572
Total revenues 120,170 179,024 111,669 59,868 - 470,731
EXPENDITURES
Capital outlay - 294,982 2,190 - - 297,172
Total expenditures - 294,982 2,190 - - 297,172
Excess (deficiency) of revenues over
(under) expenditures (115,958) 120,170 109,479 59,868 - 173,559 Net change in fund balances 120,170 (115,958) 109,479 59,868 - 173,559 Fund balances - beginning 1,222,017 90,404 192,370 363,344 25,430 1,893,565 Fund balances - ending $ (25,554) 1,342,187 $ 301,849 $ 423,212 $ 25,430 $ 2,067,124 $
89 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR CAPITAL PROJECTS FUND – STREET PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 3,227,340 3,209,340 $ 179,024 $ (3,048,316) $ Use of money and property - - - -
Total revenues 3,227,340 3,209,340 179,024 (3,048,316)
EXPENDITURES
Capital outlay 3,409,563 3,409,563 294,982 3,114,581
Total expenditures 3,409,563 3,409,563 294,982 3,114,581 Excess (deficiency) of revenues over
(under) expenditures (200,223) (182,223) (115,958) 66,265
OTHER FINANCING SOURCES/(USES)
Transfers in 200,223 200,223 - (200,223)
Net change in fund balances $ 18,000 - $ (115,958) $ (133,958) Fund balances - beginning 90,404
Fund balances - ending $ (25,554)
Budgeted Amounts
90 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR CAPITAL PROJECTS FUND – SEWER CONNECTION FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Development fees 55,000 $ 112,000 $ 112,959 $ 959 $
Use of money and property - - 7,211 7,211
Total revenues 55,000 112,000 120,170 8,170
EXPENDITURES
Current:
Public works - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
(under) expenditures $ 112,000 55,000 $ 120,170 $ 8,170 Fund balances - beginning 1,222,017
Fund balances - ending $ 1,342,187
Budgeted Amounts
91 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR CAPITAL PROJECTS FUND – STORM DRAIN FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Development fees 8,500 $ 110,000 $ 110,250 $ 250 $
Use of money and property - - 1,419 1,419
Total revenues 8,500 110,000 111,669 1,669
EXPENDITURES
Capital outlay - - 2,190 (2,190)
Total expenditures - - 2,190 (2,190)
Excess (deficiency) of revenues over
(under) expenditures $ 8,500 110,000 $ 109,479 $ 3,859
Fund balances - beginning 192,370
Fund balances - ending $ 301,849
Budgeted Amounts
92 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
NONMAJOR CAPITAL PROJECTS FUND – PARKS AND RECREATION FUND FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Actual Final Budget
REVENUES
Development fees - $ 57,900 $ 57,926 $ 26 $
Use of money and property - - 1,942 1,942
Total revenues 57,900 - 59,868 1,968
EXPENDITURES
Current:
Capital outlay - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
(under) expenditures 57,900 - 59,868 1,968
Net change in fund balances $ 57,900 - $ 59,868 $ 1,968 Fund balances - beginning 363,344
Fund balances - ending $ 423,212
Budgeted Amounts
93 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
MAJOR CAPITAL PROJECTS FUND – CAPITAL FACILITIES FUND
FOR THE YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Variance with
Original Final Actual Final Budget
REVENUES
Development fees 339,000 $ 929,500 $ 934,457 $ 4,957 $
Use of money and property - - 21,624 21,624
Total revenues 929,500 339,000 956,081 26,581
EXPENDITURES
Current:
Planning and community
development 38,950 - 43,945 (4,995)
Capital outlay 223,000 223,000 3,626 219,374
Total expenditures 261,950 223,000 47,571 214,379
Excess (deficiency) of revenues over
(under) expenditures $ 667,550 116,000 $ 908,510 $ 240,960 Fund balances - beginning 2,921,774
Fund balances - ending $ 3,830,284
94 CITY OF KINGSBURG
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
MAJOR CAPITAL PROJECTS FUND – LINNEA VILLAS PUBLIC PROJECT FUND FOR THE YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 1,140,000 - $ 1,029,644 $ (110,356) $ Total revenues 1,140,000 - 1,029,644 (110,356)
EXPENDITURES
Capital outlay 1,142,000 - 1,318,317 (176,317)
Total expenditures 1,142,000 - 1,318,317 (176,317)
Excess (deficiency) of revenues over
(under) expenditures $ (2,000) - $ (288,673) $ (286,673) Fund balances - beginning -
Fund balances - ending $ (288,673)
95 STATISTICAL SECTION
96 THIS PAGE IS LEFT BLANK INTENTIONALLY.
97 STATISTICAL SECTION
This part of the City of Kingsburg’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
Contents
Financial Trend – These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.
Revenue Capacity – These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity – These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.
Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
Source – Unless otherwise noted, the information in these schedules are derived from the Annual Comprehensive Financial Report for the relevant year.
98 THIS PAGE IS LEFT BLANK INTENTIONALLY.
99 CITY OF KINGSBURG
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 Governmental Activities
Net investment in capital assets 7,581,429 $ 8,175,220 $ 8,958,525 $ 11,010,739 $ 11,917,893 $ 13,726,605 $ 13,580,330 $ 14,634,885 $ 16,971,072 $ 19,058,680 $ Restricted 9,856,824 9,783,215 9,678,997 8,593,486 8,917,767 8,540,239 9,169,130 4,314,137 11,157,339 12,661,892 Unrestricted (217,842) (363,909) 248,329 (2,336,196) (1,786,896) (314,962) 356,161 5,732,794 254,445 907,166 Total Net Position $ 17,074,344 17,740,593 $ 18,885,851 $ 17,268,029 $ 19,048,764 $ 21,951,882 $ 23,105,621 $ 24,681,816 $ 28,382,856 $ 32,627,738 $ Business-type Activities
Net investment in capital assets $ 5,660,682 5,948,959 $ 6,408,380 $ 6,998,393 $ 6,432,895 $ 6,330,963 $ 3,774,918 $ 4,300,883 $ 6,482,788 $ 11,355,099 $ Unrestricted (4,142,048) (4,285,183) (4,624,256) (4,436,064) (3,228,171) (2,841,875) 4,604,156 4,554,673 3,499,631 (1,114,807) Total Net Position $ 1,663,776 1,518,634 $ 1,784,124 $ 2,562,329 $ 3,204,724 $ 3,489,088 $ 8,379,074 $ 8,855,556 $ 9,982,419 $ 10,240,292 $ Total Primary Government
Net investment in capital assets 13,530,388 $ 13,835,902 $ 15,366,905 $ 18,009,132 $ 18,350,788 $ 20,057,568 $ 17,355,248 $ 18,935,768 $ 23,453,860 $ 30,413,779 $ Restricted 9,783,215 9,856,824 9,678,997 8,593,486 8,917,767 8,540,239 9,169,130 4,314,137 11,157,339 12,661,892 Unrestricted (4,359,890) (4,649,092) (4,375,927) (6,772,260) (5,015,067) (3,156,837) 4,960,317 10,287,467 3,754,076 (207,641) Total Net Position $ 19,259,227 18,738,120 $ 20,669,975 $ 19,830,358 $ 22,253,488 $ 25,440,970 $ 31,484,695 $ 33,537,372 $ 38,365,275 $ 42,868,030 $
FISCAL YEARS
Source: City of Kingsburg Finance Department
100
CITY OF KINGSBURG
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
EXPENSES: 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 Governmental activities:
General government 1,022,861 $ 732,573 $ 699,807 $ 933,367 $ 810,747 $ 1,005,379 $ 965,020 $ 1,008,560 $ 2,054,881 $ 715,354 $ Parks and recreation 344,004 317,664 387,003 430,240 408,729 481,177 530,429 555,326 494,862 767,773 Public safety 1,635,259 1,816,354 1,927,391 1,785,462 1,542,352 1,797,401 2,787,216 3,660,296 4,665,132 4,472,718 Highway and streets - 454,231 434,677 380,773 766,093 893,071 878,158 1,166,319 950,088 723,805 Public works 1,153,597 735,781 778,900 814,979 557,321 599,999 717,507 673,068 535,748 1,254,211 Planning and community development 334,737 166,881 104,243 189,723 286,768 356,258 367,442 477,762 426,503 650,586 Interest 550,981 416,929 437,404 300,066 199,851 187,158 173,912 158,427 141,335 124,188 Total governmental activities 5,041,439 4,640,413 4,769,425 4,834,610 4,571,861 5,320,443 6,419,684 7,699,758 9,268,549 8,708,635 Business-type activities:
Water 1,748,110 1,890,846 1,886,697 1,716,307 1,536,034 1,924,632 1,961,341 2,112,020 1,939,622 2,349,264 Disposal 1,647,144 1,668,555 1,697,655 1,810,815 1,854,083 1,940,311 1,924,253 1,986,773 1,967,168 2,161,473 Ambulance/Fire 1,568,302 1,524,414 1,649,811 1,705,874 2,437,389 2,296,617 4,730,318 4,322,083 4,113,733 5,301,596 Building fee 50,680 47,184 66,880 113,451 - - - - - -
Total business-type activities 5,014,236 5,130,999 5,301,043 5,346,447 5,827,506 6,161,560 8,615,912 8,420,876 8,020,523 9,812,333 Total primary government expenses 10,055,675 $ 9,771,412 $ 10,070,468 $ 10,181,057 $ 10,399,367 $ 11,482,003 $ 15,035,596 $ 16,120,634 $ 17,289,072 $ 18,520,968 $ PROGRAM REVENUES:
Governmental activities:
Charges for services $ 409,626 287,035 $ 713,585 $ 562,899 $ 703,733 $ 1,742,760 $ 1,223,069 $ 1,059,138 $ 3,493,622 $ 2,612,979 $ Operating grants 1,061,521 1,157,695 1,303,802 1,191,204 1,104,208 1,271,688 1,391,409 1,473,950 1,763,066 2,592,719 Capital grants 792,635 1,134,825 284,076 1,189,281 876,625 1,086,239 92,955 364,811 439,572 307,350 Total governmental activities 2,579,555 2,263,782 2,301,463 2,943,384 2,684,566 4,100,687 2,707,433 2,897,899 5,696,260 5,513,048 Business-type activities:
Charges for services 4,158,866 4,090,957 4,598,066 6,663,662 4,783,627 4,664,727 6,589,431 6,644,726 7,114,028 7,450,737 Operating grants - - 203,192 199,462 899,983 1,391,447 1,712,967 1,231,609 1,324,235 2,362,855 Capital grants - - 203,192 199,462 - - - 591,320 102,078 - Total business-type activities 4,090,957 4,158,866 5,004,450 7,062,586 5,683,610 6,056,174 8,302,398 8,467,655 8,540,341 9,813,592 Total primary government program revenues $ 6,422,648 6,670,512 $ 7,305,913 $ 10,005,970 $ 8,368,176 $ 10,156,861 $ 11,009,831 $ 11,365,554 $ 14,236,601 $ 15,326,640 $
FISCAL YEARS
Source: City of Kingsburg Finance Department
101
CITY OF KINGSBURG
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(Continued)
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 Net (expense)/revenue:
Governmental activities (2,461,884) $ (2,376,631) $ (2,467,962) $ (1,891,226) $ (1,887,295) $ (1,219,756) $ (3,712,251) $ (4,801,859) $ (3,572,289) $ (3,195,587) $ Business-type activities (972,133) (923,279) (296,593) 1,716,139 (143,896) (105,386) (313,514) 46,779 519,818 1,259 Total primary government (expenses) revenue, net $ (3,348,764) (3,385,163) $ (2,764,555) $ (175,087) $ (2,031,191) $ (1,325,142) $ (4,025,765) $ (4,755,080) $ (3,052,471) $ (3,194,328) $ GENERAL REVENUES:
Governmental activities:
Taxes:
Property taxes 1,105,258 $ 880,544 $ 877,251 $ 891,467 $ 1,128,016 $ 1,072,835 $ 1,422,746 $ 1,472,558 $ 1,665,338 $ 1,780,984 $ Sales and use taxes 986,848 894,327 1,123,783 1,195,203 953,113 1,051,840 982,698 2,460,290 3,092,695 3,590,893 Franchise taxes 324,743 332,448 329,884 227,745 371,609 375,520 483,749 433,177 476,016 519,474 Other taxes - - - - - - - - - -
Special assessments 269,198 265,045 284,800 227,861 243,108 249,630 243,785 239,557 - -Business licenses and transient occupancy taxes 343,694 319,203 409,513 421,535 471,331 515,696 539,949 538,169 320,034 295,857Motor vehicle in-lieu 839,275 829,356 852,912 890,591 959,489 1,051,648 1,081,176 1,105,422 1,164,984 1,185,675Investment earnings 384,396 372,519 294,378 281,981 190,689 205,053 227,180 211,383 210,807 124,720Miscellaneous 143,316 172,589 123,042 160,211 133,675 90,403 63,707 267,498 843,455 242,866 Gain/Loss on sale of capital assets - - - 1,113,000 - - - - - - Transfers (826,055) (688,126) (794,705) (1,126,357) (783,000) (383,000) (179,000) (350,000) (500,000) (300,000) Extraordinary item-RDA dissolution (224,517) - - - - - - - - - Total governmental activities 3,264,467 3,459,594 3,500,858 4,283,237 3,668,030 4,229,625 4,865,990 6,378,054 7,273,329 7,440,469 Business-type activities:
Investment earnings 936 - 1,081 1,321 3,291 6,750 24,500 79,703 107,045 20,983 Miscellaneous 826,055 787 - - - - - - - -
Transfers - 702,034 794,705 1,126,357 783,000 383,000 179,000 350,000 500,000 300,000Extraordinary item-settlement revenue - - - - - - 5,000,000 - - - Total business-type activities 826,991 702,821 795,786 1,127,678 786,291 389,750 5,203,500 429,703 607,045 320,983 Changes in net position:
Governmental activities 997,710 887,836 1,032,896 2,392,011 1,780,735 3,009,869 1,153,739 1,576,195 3,701,040 4,244,882 Business-type activities (145,142) (220,458) 499,193 2,843,817 642,395 284,364 4,889,986 476,482 1,126,863 322,242 Total primary government changes in net position $ 742,694 777,252 $ 1,532,089 $ 5,235,828 $ 2,423,130 $ 3,294,233 $ 6,043,725 $ 2,052,677 $ 4,827,903 $ 4,567,124 $
FISCAL YEARS
Source: City of Kingsburg Finance Department
102
CITY OF KINGSBURG
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED BASIS OF ACCOUNTING)
FISCAL YEARS
2011‐2012 2012‐2013 2013‐2014 2014‐2015 2015‐2016 2016‐2017 2017‐2018 2018‐2019 2019‐2020 2020‐2021 General Fund: Nonspendable - $ - $ - $ $ 130,397 162,769 $ 96,706 $ 61,652 $ 25,180 $ - $ - $ Committed - - - - - - - 3,360,441 2,507,499 3,213,399
Unassigned 1,232,012 1,086,800 1,461,498 2,443,302 2,629,738 3,531,436 4,491,553 1,968,125 2,644,962 2,878,456 Total General Fund 1,086,800 $ 1,232,012 $ 1,461,498 $ 2,606,071 $ 2,760,135 $ 3,628,142 $ 4,553,205 $ 5,353,746 $ 5,152,461 $ 6,091,855 $ All Other Governmental Funds:
Nonspendable - $ - $ - $ $ 3,957,000 - $ - $ - $ - $ - $ - $ Restricted 9,856,824 9,783,215 9,678,997 8,593,486 4,621,378 8,540,239 9,169,130 4,314,137 11,157,339 12,661,892 Unassigned (1,646,087) (1,937,912) (1,108,285) (809,095) (1,150,379) (465,268) (374,335) 4,428,564 (172,877) (604,512) Total all other governmental funds $ 8,137,128 7,918,912 $ 8,570,712 $ 7,784,391 $ 7,427,999 $ 8,074,971 $ 8,794,795 $ 8,742,701 $ 10,984,462 $ 12,057,380 $ Source: City of Kingsburg Finance Department
103
CITY OF KINGSBURG
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED BASIS OF ACCOUNTING)
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 REVENUESTaxes 2,952,582 $ 2,626,639 $ 2,874,558 $ 2,806,079 $ 2,978,556 $ 3,079,961 $ 3,494,437 $ 4,955,546 $ 5,500,950 $ 6,241,264 $ Licenses and permits 840,982 972,680 1,004,639 1,050,552 334,854 636,645 372,683 308,666 619,929 564,818 Intergovernmental revenue 1,250,400 1,945,310 1,988,815 2,685,956 2,965,168 3,298,906 2,438,320 3,070,976 3,450,740 4,161,013 Charges for services 254,067 261,621 331,805 358,346 326,563 384,310 451,115 391,458 375,013 321,432 Fines and penalties 31,262 28,912 24,930 14,854 18,693 12,677 15,464 20,424 11,679 5,023 Development fees 134,788 132,633 393,690 206,034 229,372 1,005,356 689,517 541,125 2,557,760 1,778,943 Interest 384,398 372,522 294,376 281,982 190,689 205,053 227,180 211,383 210,808 124,720 Other revenue 145,219 174,619 123,834 170,895 133,675 90,403 63,707 267,498 843,455 242,866 Total revenues 5,993,698 6,514,936 7,036,647 7,574,698 7,177,570 8,713,311 7,752,423 9,767,076 13,570,334 13,440,079 EXPENDITURES Current: General Government 547,042 647,725 754,204 630,146 726,070 972,276 893,467 923,719 1,172,306 1,147,009 Parks and community services 339,590 314,095 339,903 374,605 351,214 380,758 448,594 490,816 442,329 587,292 Public Safety 1,531,296 1,724,612 1,830,589 1,805,649 1,919,580 2,055,197 2,305,276 2,718,914 3,959,415 4,054,682 Public Works 904,472 429,704 453,140 461,645 438,132 397,214 408,377 708,016 571,131 564,783 Tax pass-through 153,500 - - - - - - - - -
Highway and streets - 438,270 433,283 372,677 574,122 613,152 542,592 561,280 564,402 548,923 Planning and community development 191,037 166,744 104,194 189,215 315,118 311,654 355,537 395,608 547,095 641,648 Capital outlay 1,552,710 840,407 1,069,364 1,633,605 1,297,259 2,080,185 493,628 2,404,518 3,334,931 3,176,074 Debt service: Principal 715,272 265,000 265,000 5,190,000 317,349 292,914 314,516 314,697 304,370 290,633 Interest and fiscal charges 543,079 498,896 441,557 478,100 163,665 179,620 166,549 151,061 133,879 116,723 Bond issuance costs - - - 268,580 - - - - - - Total expenditures 6,477,998 5,325,453 5,691,234 11,404,222 6,102,509 7,282,970 5,928,536 8,668,629 11,029,858 11,127,767 Excess of revenues Over (under) Expenditures (484,300) 1,189,483 1,345,413 (3,829,524) 1,075,061 1,430,341 1,823,887 1,098,447 2,540,476 2,312,312 OTHER FINANCING SOURCES (USES) Transfers in 1,325,075 425,271 337,833 230,168 499,805 294,677 585,473 153,715 155,000 205,000 Transfers out (2,013,201) (1,251,326) (1,132,538) (1,356,525) (1,282,805) (677,677) (764,473) (503,715) (655,000) (505,000) Capital lease - - - - 80,000 - - - - -
-
Total other financing sources (uses) (688,126) (826,055) (794,705) (1,126,357) (703,000) (383,000) (179,000) (350,000) (500,000) (300,000)
EXTRAORDINARY ITEM
RDA dissolution (738,672) - - - - - - - - -
Net changes in fund balances $ (1,911,098) 363,428 $ 550,708 $ (4,955,881) $ 372,061 $ 1,047,341 $ 1,644,887 $ 748,447 $ 2,040,476 $ 2,012,312 $ Debt service as a percentage of noncapital expenditures 25.55% 17.03% 15.29% 58.01% 10.01% 9.08% 8.85% 7.44% 5.70% 4.84%Source: City of Kingsburg Finance Department
FISCAL YEARS
104
CITY OF KINGSBURG
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Exemption
Fiscal Assessed Estimated Assessed Estimated Real Assessed Estimated Year Value Actual Value Value Actual Value Property Value Actual Value 2011 657,011,437 657,011,437 31,508,270 31,508,270 13,192,500 675,327,207 688,519,707 2012 645,899,699 645,899,699 34,245,120 34,245,120 12,790,300 667,354,519 680,144,819 2013 671,443,117 671,443,117 28,981,580 28,981,580 12,806,700 687,617,997 700,424,697 2014 701,662,334 701,662,334 29,990,240 29,990,240 12,499,900 719,152,674 731,652,574 2015 877,189,470 877,189,470 50,748,640 50,748,640 12,285,700 915,652,410 927,938,110 2016 947,962,408 947,962,408 68,868,920 68,868,920 11,904,300 1,004,927,028 1,016,831,328 2017 981,408,294 981,408,294 65,683,876 65,683,876 11,530,500 1,035,561,670 1,047,092,170 2018 1,019,962,455 1,019,962,455 51,286,384 51,286,384 11,203,500 1,060,045,339 1,071,248,839 2020 1,087,881,484 1,087,881,484 44,222,390 44,222,390 11,007,500 1,121,096,374 1,132,103,874 2021 1,108,598,397 1,108,598,397 44,135,237 44,135,237 10,865,700 1,141,867,934 1,152,733,634 Source: Fresno County Auditor/Controller
Real Property Personal Property Net
105
CITY OF KINGSBURG
ASSESSED VALUE OF TAXABLE PROPERTY
LAST FIVE FISCAL YEARS
Fiscal Year
End
Residential
Property
Commercial
Property
Industrial
Property Other Property
Unsecured
Property
Less TaxExempt Property Taxable Assessed Value
Total
Direct Tax
Rate (1)
Estimated Actual
Taxable Value (2)
Factor of Taxable
Assessed Value (2)
2016-17 648,069,132 $ 121,712,507 $ 155,223,530 $ 34,710,051 $ 68,825,940 $ 23,725,212 $ 1,004,815,948 $ 1.10283 1,142,033,614 $ 1.136562017-18 680,632,513 126,149,224 147,261,420 35,594,962 65,643,166 22,437,155 1,032,844,130 1.155064 1,141,242,154 1.104952018-19 725,665,588 126,738,869 146,395,878 43,805,088 51,769,384 34,329,468 1,060,045,339 1.145616 1,321,236,906 1.246402019-20 770,982,279 132,721,111 145,289,353 56,919,372 44,947,600 29,932,131 1,120,927,584 1.141002 1,328,422,713 1.185112020-21 794,587,439 136,342,357 146,092,510 67,359,507 44,404,487 47,075,116 1,141,711,184 1.51188 1,316,087,978 1.15273 Other property includes state unitary in the amount of $39,659.(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.
Based on these calculations a factor was extrapolated and applied to current assessed values. Source: Avenu Insights & Analytics2015-16 is the City's first ACFR publication, therefore prior year data availability is limited. (1) Total Direct Tax Rate is represented by TRA 6-000.
106
CITY OF KINGSBURG
TAX REVENUES BY SOURCE – GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Fiscal Year Property Sales Franchise Motor Vehicle Other Taxes Total 2011-2012 1,105,258 986,848 324,743 839,275 588,401 3,844,525 2012-2013 880,544 894,327 332,448 829,356 608,739 3,545,4142013-2014 877,251 1,123,783 329,884 852,912 694,313 3,878,1432014-2015 891,467 1,195,203 227,745 890,591 649,396 3,854,4022015-2016 1,128,016 953,113 371,609 959,489 714,439 4,126,6662016-2017 1,072,835 1,051,840 375,520 1,051,648 765,326 4,317,1692017-2018 1,422,746 982,698 483,749 1,081,176 783,734 4,754,1032018-2019 1,472,558 2,460,290 433,177 1,105,422 777,726 6,249,1732019-2020 1,665,338 3,092,695 476,016 1,164,984 320,034 6,719,0672020-2021 1,780,984 3,590,893 519,474 1,185,675 295,857 7,372,883 Source: City of Kingsburg Finance Department
107
CITY OF KINGSBURG
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST FIVE FISCAL YEARS
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Basic City and County Levy
FRESNO CO LIBRARY 0.017500 0.017500 0.017500 0.017500 0.017500 KINSBURG CEMETARY 0.013880 0.013880 0.013880 0.013880 0.013880 KINGSBURG HOSPITAL 0.043010 0.043010 0.043010 0.043010 0.043010 CONSOLIDATED MOSQ 0.008160 0.008160 0.008160 0.008160 0.008160 KINGSBURG ELEM 0.168810 0.168810 0.168810 0.168810 0.168810 KINGSBURG HIGH 0.166870 0.166870 0.166870 0.166870 0.166870 STATE CENTER COMM 0.051700 0.051700 0.051700 0.051700 0.051700 SCH EQUALIZATION 0.029850 0.029850 0.029850 0.029850 0.029850 CITY OF KINGSBURG 0.167150 0.167150 0.167150 0.167150 0.167150 FRESNO COUNTY 0.333070 0.333070 0.333070 0.333070 0.333070 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
STATE CC 2012 REF 0.002562 0.002580 0.002284 0.002044 0.001944 KINGSBURG JUES 16 REF 0.016346 0.002584 0.006122 0.005328 0.030188 KINGSBURG 2004 BD 0.010330 0.001456 0.000000 0.000000 0.000000 KINGSBURG 2006 REF 0.005576 0.017282 0.019682 0.018148 0.000000 KNGSBG HS 06 S08 0.001722 0.000000 0.000000 0.000000 0.000000 KINGSBURG HIGH 16 REF 0.027752 0.028416 0.028298 0.026658 0.027164 KINGSBURG HI 98 0.027536 0.029258 0.027426 0.025948 0.028058 KINGSBURG 2006 0.000000 0.000000 0.000000 0.000000 0.000000 KINGSBURG 2013 REF 0.000000 0.000000 0.000000 0.000000 0.000000 KINGSBURG HI 14A 0.005088 0.007664 0.007552 0.007180 0.007272 KINGSBURG HI 14B 0.000000 0.017210 0.014906 0.013522 0.015026 KINGS JUES 2016 A 0.000000 0.025260 0.018664 0.018432 0.006470 KINGS JUES 2016 B 0.000000 0.000000 0.000000 0.000000 0.011338 ST COL 2002 2007A 0.001724 0.000000 0.000000 0.000000 0.000000 ST COLL 02 S 09A 0.000482 0.000452 0.000452 0.000000 0.000000 ST COLL 02 S 09B 0.000540 0.000514 0.000504 0.000000 0.000000 STATE CCC 15 REF 0.003172 0.004056 0.004286 0.004614 0.004272 ST COLL 2016 GO A 0.000000 0.018332 0.015440 0.014730 0.000002 STATE CC 17 REF 0.000000 0.000000 0.000000 0.000440 0.000002 STATE CC 02 S 18A 0.000000 0.000000 0.000000 0.003958 0.002750 STATE CCC 16 B 0.000000 0.000000 0.000000 0.000000 0.016702 TOTAL 0.102830 0.155064 0.145616 0.141002 0.151188
TOTAL TAX RATE 1.102830 1.155064 1.145616 1.141002 1.151188 TRA 6-000 is represented for this report
*In 1978, California voters inacted Proposition 13 which held property taxes to 1% of the assessed Value.
Taxing entity's do not impose mileage rates but instead receive a share of the total 1% tax.
Source: Fresno County Auditor/Controller data, Avenu Insights & Analytics 2015-16 is the City's first ACFR publication, therefore prior year data availability is limited. 108
CITY OF KINGSBURG
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Taxpayer
Taxable Value
($)
Percent of Total
City Taxable
Value (%)
Taxable Value
($)
Percent of Total
City Taxable
Value (%)
Guardian Industries Corporation 70,081,757 6.14%
Sun-Maid Raisin Growers of California 67,547,561 5.92%
PCA Central California 16,826,000 1.47%
Alves George J & Louise N L Trustees 11,298,443 0.99%
Kingsburg Kings Pointe LLC 11,039,287 0.97%
K Prop LLC 9,773,998 0.86%
JBBBS LLC 9,663,412 0.85%
Superb Hospitality LLC 7,772,443 0.68% 7,644,934 1.13%
Calico-Kingsburg LLC 5,859,831 0.51%
DFA of California 5,191,579 0.45%
PLT Kingsburg LLC 5,156,700 0.45% 4,555,000 0.67%
Cencal CNC Inc 3,984,200 0.35%
RMP Properties LLC 3,981,465 0.35% 3,398,686 0.50%
Vie-Del Company 3,902,574 0.34%
Foster Poultry Farms 3,873,300 0.34% 1,571,241 0.23%
KES Kingsburg L P 3, 0.32% 673,800
MSYS LLC 3,541,170 0.31%
Shahbazian John & Linda Trustees 3,489,848 0.31% 1852675 0.27% Kingsburg Investments LLC 3,323,817 0.29% 3,192,272 0.47% Public Properties Inc 3,238,747 0.28%
Gong Billy Kwock Trustee 3, 0.28% 2,787,359 146,723 0.41% Wiebe Abe Ann Trustees 2,904,415 0.25% 2,479,291 0.37%
Sai Hospitality LLC 2,789,460 0.24%
Alamsi Ahmed 2,758,100 0.24%
Kingsburg Court LLC 2,596,641 0.23% 2,624,578 0.39%
Del Monte Corp 31,833,298 4.72%
Silgan Containers Mfg. Corp 13,699,600 2.03%
Emster XII LLC 0.67% 4,500,000
Kings View LP 0.66% 4,450,200
Satterberg Estates LLC 4,174,577 0.62%
85 Almond St Inc. 2,853,959 0.42%
Park Kingsburg 0.40% 2,678,000
FILPER Corp 0.32% 2,172,900
Canzoneri Richard M Norma G Tr 2,164,299 0.32%
Henderson EZ Storage LP 1,982,939 0.29%
VBW Investments 1,955,800 0.29%
Comcast of Fresno Inc. 1,664,100 0.25%
Swedish Inn LLC 1,656,132 0.25%
Gianulias Vasio 0.22% 1,507,400
Serpa Matilda D Trustee 1,504,656 0.22%
Sushi Investors 0.21% 1,395,930
Total Top 25 Taxpayers 267,415,271 23.42% 110,299,826 16.34% Total Taxable Value 1,141,711,184 100.00% 675,040,085 100.00% Source: Avenu Insights & Analytics
2020-2021 2010-11
109
CITY OF KINGSBURG
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Fiscal Year
Current Tax
Levies
Current Tax
Collections
Percent of
Current
Taxes
Collected
Delinquent
Tax
Collections
Total Tax
Collections
2011-2012 1,772,100 1,772,100 100% - 1,772,100
2012-2013 1,805,714 1,805,714 100% - 1,805,714
2013-2014 1,847,084 1,847,084 100% - 1,847,084
2014-2015 2,105,664 2,105,664 100% - 2,105,664
2015-2016 1,916,057 1,916,057 100% - 1,916,057
2016-2017 2,198,316 2,198,316 100% - 2,198,316
2017-2018 2,270,184 2,270,184 100% - 2,270,184
2018-2019 2,342,997 2,342,997 100% - 2,342,997
2019-2020 2,377,674 2,377,674 100% - 2,377,674
2020-2021 2,420,200 2,420,200 100% - 2,420,200
Source: Fresno County Auditor/Controller
secured roll to the City of Kingsburg.
of tax levies and collections known as the Teeter Plan. Fresno County distributes 100% of the current Notes: Revenue and Taxation Code Sections 7401 through 4717 provide for an alternative method of distribution 110
CITY OF KINGSBURG
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Percentage
Tax CIEDB Lease Total of Estimate Actual
Fiscal Allocation Police Bldg Capital Revenue Water Meter CIEDB Primary Value of Taxable Year Bonds Loan Leases Bonds Capital Lease Water Loan Government Property (1) 2012 2,800,000 - - 2,894,777 - 2,592,390 8,287,167 1.24% 2013 2,610,000 - - 2,821,161 - 2,512,316 7,943,477 1.18% 2014 2,425,000 - - 2,742,545 1,093,774 2,429,858 8,691,177 1.30% 2015 1,439,100 - - 2,679,930 987,674 2,344,942 7,451,646 1.08% 2016 1,262,900 - 68,853 2,570,000 878,011 2,257,496 7,037,260 0.98% 2017 1,095,300 - 53,539 2,441,950 764,664 2,167,443 6,522,896 0.71% 2018 911,600 - 37,693 2,327,960 647,510 2,074,708 5,999,471 0.60% 2019 733,300 - 20,697 2,208,970 526,420 1,979,208 5,468,595 0.53% 2020 570,900 - 3,732 2,084,980 401,264 1,880,863 4,941,739 0.47% 2021 409,600 - - 1,960,990 271,903 1,779,587 4,422,080 0.39% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements Source: City of Kingsburg Financial Report
(1) See the schedule of Assessed and Actual Value of Property.
Governmental Activities Business Type Activities
111
CITY OF KINGSBURG
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Fund Less Amounts Percent of Actual
Fiscal Debt Available in Debt Total Assessed Taxable Value Year Outstanding Service Fund Total Property Value Population of Property Per Capita 2011 235,000 5,694,777 5,459,777 675,327,207 11,590 0.81% 471 2012 270,000 5,431,161 5,161,161 667,354,519 11,685 0.77% 442 2013 270,000 5,167,545 4,897,545 687,617,997 11,711 0.71% 418 2014 306,200 4,119,030 3,812,830 719,152,674 12,101 0.53% 315 2015 277,600 3,901,753 3,624,153 915,652,410 12,101 0.40% 299 2016 144,006 3,590,789 3,446,783 1,004,927,028 12,338 0.34% 279 2018 174,572 3,277,253 3,177,461 1,035,561,670 12,253 0.31% 259 2019 192,881 2,962,967 2,770,086 1,060,045,339 12,392 0.26% 224 2020 211,273 2,659,612 2,448,339 1,121,096,374 12,883 0.22% 190 2021 277,418 2,370,590 2,093,172 1,141,867,934 12,883 0.18% 162 Source: City of Kingsburg Finance Department
General Debt Outstanding
112
CITY OF KINGSBURG
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2021
City’s Share
Total Debt of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable 6/30/2021 State Center Community College District 343,015,000 $ 1.208% 4,143,621 $ Selma Unified School District 4.677% 2,244,779 47,996,126 Kingsburg Joint Union High School District 47.605% 8,948,140 18,796,640 Kingsburg Elementary Charter School District 62.771% 11,397,529 18,157,316 City of Kingsburg 1915 Act Bonds 100.000% 197,000 197,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 26,931,069 $ (1) DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Fresno County General Fund Obligations $ 1.318% 29,055,000 $ 382,945 Fresno County Pension Obligation Bonds 1.318% 215,756,193 2,843,667 Selma Unified School District Certificates of Participation 4.677% 9,876,052 461,903 Kingsburg Elementary Charter School District Certificates of Participation 62.771% 3,455,118 2,168,812 City of Kingsburg General Fund Obligations 100.000% 1,975,000 1,975,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 7,832,327 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 80,000 $ 100.000% 80,000 $ TOTAL DIRECT DEBT $ 1,975,000
TOTAL OVERLAPPING DEBT $ 32,868,396
COMBINED TOTAL DEBT $ 34,843,396 (2)
(1)
(2)
Ratios to 2020-2021 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.34%
Total Direct Debt ($2,100,000) 0.17%
Combined Total Debt 3.02%
Ratios to Redevelopment Successor Agency Incremental Valuation ($118,505,737):
Total Overlapping Tax Increment Debt 0.07%
Source: Avenu Insights & Analytics
The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentage were estimated by determining the portion of the overlapping district’s assessed value that is within the boundaries of the City divided by the district’s total taxable assessed value.
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease 113
CITY OF KINGSBURG
LEGAL DEBT MARGIN INFORMATION
AS OF JUNE 30, 2021
ASSESSED VALUATION
Assessed Value 1,141,867,934 $
Add back exempt property 10,865,700
Total Assessed Value 1,152,733,634
LEGAL BONDED DEBT LIMIT
(15% OF ASSESSED VALUE) 172,910,045
AMOUNT OF DEBT SUBJECT TO LIMIT:
Total Bonded debt 2,370,590
Less Tax Allocation Bonds
not subject to limit -
Amount Subject to limit 2,370,590
LEGAL BONDED DEBT MARGIN 170,539,455 $
Fiscal Year Debt Limit
Total Net Debt
Applicable to
Limit
Legal Debt
Margin
Total net debt
applicable to
the limit as a
percentage of
debt limit
2012 103,277,956 2,920,000 100,357,956 2.91%
2013 102,021,723 2,845,000 99,176,723 2.87%
2014 105,063,705 2,845,000 102,218,705 2.78%
2015 109,747,886 2,765,000 106,982,886 2.58%
2016 139,190,717 2,570,000 136,620,717 1.88%
2017 152,524,699 3,537,250 148,987,449 2.37%
2018 157,063,826 3,239,560 153,824,266 2.11%
2019 160,687,326 2,942,270 157,745,056 1.87%
2020 169,815,581 2,655,880 167,159,701 1.59%
2021 172,910,045 2,370,590 170,539,455 1.39%
Source: Fresno County Auditor/Controller
114
CITY OF KINGSBURG
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST FIVE FISCAL YEARS
Fiscal Year
Population
(1)
Personal
Income (2)
Per Capita
Personal
Income (2)
Median
Age (4)
**Public
School
Enrollment
County
Unemployment
Rate (%) (3)
City
Unemployment
Rate (%) (3)
County
Population
(1)
2016-2017 12,338 333,693,548 27,046 34.7 3,391 9.4% 9.6% 995,975 2017-2018 12,253 352,478,498 28,767 34.2 3,390 8.7% 7.3% 1,007,229 2018-2019 12,392 376,006,738 30,343 34.1 3,396 6.4% 5.8% 1,018,241 2019-2020 12,883 406,565,321 31,558 35.2 3,333 15.7% 11.1% 1,023,358 2020-2021 13,084 445,686,311 34,063 34.8 3,307 11.3% 7.6% 1,026,681 (1) Population projections are provided by the California Department of Finance Projections. (2) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey. (3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. (4) Median Age reflects the U.S. Census data estimation table. **Student Enrollment reflects the total number of students enrolled in Kingsburg Elementary Charter and Kingsburg Joint Union High.
Source: Avenu Insights & Analytics, U.S. Census Bureau, 2010 American Community Survey. 2015-16 is the City's first ACFR publication, therefore prior year data availability is limited. 115
CITY OF KINGSBURG
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Business Name
Number of
Employees
Percent of Total
Employment (%)
Number of
Employees
Percent of Total
Employment (%)
Kingsburg Elementary Charter School District * 310 5.85% 0.00% Guardian Industries Corporation 230 4.34% 298 5.14%
Kingsburg Joint Union High School District 140 2.64% 0.00% Kingsburg Care Center ** 93 1.75% 0.00%
Save Mart 89 1.68% 70 1.21%
Jensen McClarty LLC 67 1.26% 100 1.72%
Cencal CNC Inc. 78 1.47% 0.00%
Cornerstone Cold Storage *** 53 1.00% 0.00%
Kings River Union School District 55 1.04% 51 0.88%
City of Kingsburg 63 1.19% 46 0.79%
Kmart 70 1.21%
Nutrius 45 0.78%
Waste Connection 36 0.62%
Denny's 32 0.55%
Fairfield Inn & Suites 19 0.33%
Total Top 10 Employers 1,178 22.23% 767 13.22%
Total City Labor Force (1) 5,300 5,800
Source: Avenu Insights & Analytics
2015-16 is the city's first ACFR publication, therefore, prior year data availability is limited.
Results based on direct correspondence with city’s local businesses. *Includes FTE, Substitutes & Coaches
** Includes FTE & On-call
*** Includes seasonal employees
(1) Total City Labor Force provided by EDD Labor Force Data. 2020-2021 2015-2016
116
CITY OF KINGSBURG
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Function/Programs 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental Activities
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Manager 1.00 1.00 1.00 1.00 1.00 1.44 1.42 1.50 1.35 1.34 City Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.20 1.00 Finance 1.00 1.00 1.00 1.00 1.00 1.00 0.95 1.00 5.00 0.95 Community Services 3.85 3.85 3.85 3.85 3.85 7.27 8.41 6.00 6.00 5.54 Human Resource 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Police Department 18.00 18.00 18.00 18.00 18.00 18.07 20.36 21.50 19.72 20.50 Planning & Development 0.25 0.25 0.55 0.55 1.35 2.00 2.00 2.00 2.00 2.00 Public Works 3.03 3.03 3.03 3.03 3.03 3.00 5.34 7.00 7.00 2.34 Total Govermental Activities 34.13 34.13 34.43 34.43 35.23 39.78 45.48 46.00 48.27 39.67 Business-Type-Activities
Water 5.83 5.83 5.83 5.83 5.83 4.00 4.08 4.00 3.00 2.58 Solid Waste 2.05 2.05 2.05 2.05 2.05 2.00 2.13 - - 2.58 Ambulance/Fire 9.50 9.20 9.50 12.50 12.50 11.70 11.27 14.50 15.00 14.50 Building Permit 0.65 0.65 0.65 1.35 - - - - - -
Total Business Type Activities 18.03 17.73 18.03 21.73 20.38 17.70 17.48 18.50 18.00 19.66 Full Time Employees 52.16 51.86 52.46 56.16 55.61 57.48 62.96 64.50 66.27 59.33 Source: City of Kingsburg Finance Department
117
CITY OF KINGSBURG
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
# of calls for service 15,644 17,424 19,109 12,736 8,125 9,840 9,635 9,003 8,599 9,153 # of arrests 427 361 370 369 276 383 388 309 165 286
# of traffic citations 532 502 655 293 302 657 815 715 229 586 Fire
# of fire calls 317 380 509 598 441 622 495 560 536 653 # of EMS calls 1,613 1,450 1,594 1,651 1,285 1,768 1,657 1,894 2,084 2,157 # of inspections 6 14 10 8 6 10 6 24 150 225
Parks and Recreation
# of recreation classes 5 5 5 5 5 5 6 6 2 6
# of facility rentals 276 278 304 341 303 251 292 309 103 230 Public Works
# of street miles maintained 47.50 47.50 47.50 47.50 47.50 50.00 72.00 72.00 72.00 72.00 # of Facilities sq ft maintained 67,078 67,078 67,078 67,078 67,078 67,078 67,078 67,078 67,078 67,078 Utilities:
# of utility accounts 3,446 3,589 3,602 3,607 3,614 3,666 3,701 3,732 3,818 3,894 Water Production volume (in millions) 1,240.30 1,343.70 1,129.00 837.50 805.24 980.18 878.10 844.01 930.01 1,072.97 Planning and Building
# of building permits 241 255 233 388 310 416 379 426 684 889 # of planning applications 32 20 34 27 14 40 25 32 27 20 # of code complaints - - - 30 50 14 61 321 162 231
Source: City of Kingsburg Finance Department
118
CITY OF KINGSBURG
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety:
Police Stations 1 1 1 1 1 1 1 1 1 1
Fire Stations 2 2 2 2 2 2 2 2 2 2
Public Utilities:
Streets (miles) 47.50 47.50 47.50 47.50 47.50 50.00 72.00 72.00 72.00 72.00 Community Services:
Parks 8 8 8 9 9 9 9 9 9 9
Utilities:
Water Wells 8 8 8 8 8 8 8 8 8 8
Source: City of Kingsburg Finance Department
GENERAL FUND 2017 2018 2019 2020 2021
BEGINNING OF YEAR FUND BALANCE 2,760,135 3,628,142 4,553,205 5,353,746 5,152,461 REVENUES: 5,580,361 5,817,503 6,084,383 6,881,047 6,787,980 EXPENDITURES: 4,712,354 4,892,440 5,283,842 6,627,332 5,643,586 Total Transfers in/Transfers out - - - (455,000) (205,000) FUND BALANCE END OF YEAR 3,628,142 4,553,205 5,353,746 5,152,461 6,091,855 MEASURE E FUND 2017 2018 2019 2020 2021
BEGINNING OF YEAR FUND BALANCE - - - 232,681 605,538
Operating Revenue 1,144,657 1,910,204 2,316,794
Operating Expense 911,976 1,537,347 1,557,389
Changes in accounting principles - - - - -
FUND BALANCE END OF YEAR - - 232,681 605,538 1,364,943
WATER FUND 2017 2018 2019 2020 2021
BEGINNING OF YEAR FUND BALANCE 5,094,997 5,103,642 10,172,474 10,287,118 10,777,105 Operating Revenue 2,092,899 2,197,961 2,347,938 2,352,267 2,380,274 Operating Expense 2,084,254 2,129,129 2,233,294 1,862,280 2,263,207 Settlement revenue 5,000,000
Changes in accounting principles - - - (65,074)
FUND BALANCE END OF YEAR 5,103,642 10,172,474 10,287,118 10,777,105 10,829,098 DISPOSAL FUND 2017 2018 2019 2020 2021
BEGINNING OF YEAR FUND BALANCE (257,533) (317,923) (332,496) (460,799) (506,101) Operating Revenue 1,879,921 1,909,680 1,858,470 1,921,866 1,925,875 Operating Expense 1,940,311 1,924,253 1,986,773 1,967,168 2,161,473 Changes in accounting principles - - - - -
FUND BALANCE END OF YEAR (317,923) (332,496) (460,799) (506,101) (741,699) AMBULANCE/FIRE FUND 2017 2018 2019 2020 2021
BEGINNING OF YEAR FUND BALANCE (1,632,740) (1,296,631) (1,460,904) (970,763) (352,954) Operating Revenue 2,632,726 4,566,043 4,812,224 2,823,209 3,755,812 Operating Expense 2,296,617 4,730,316 4,322,083 2,141,031 3,249,965 Changes in accounting principles - - - (64,369) -
FUND BALANCE END OF YEAR (1,296,631) (1,460,904) (970,763) (352,954) 152,893
CITY COUNCIL MEETING STAFF REPORT
REPORT TO: Mayor North and Council Members
REPORT FROM: Daniel Galvez, Public Works Director REVIEWED BY: AH AGENDA ITEM: Solid Waste Rate Study
ACTION REQUESTED: ___Ordinance ___Resolution __✓__Motion ____Receive/File
EXECUTIVE SUMMARY
City staff and Alison Lechowicz with Lechowicz and Tseng Municipal Consultants (L&T) are providing a Prop 2018 Solid Waste rate study presentation which encompasses Disposal and Street Sweeping. L&T has provided three options based on input from the March 22, 2022, Finance Committee meeting. The presented rates are based on the prosed fees by Mid Valley Disposal encompassing the increase cost due to SB1383, and other factors such as the Consumer Price Index (CPI)increase cost passed on by MVD annually, operating and maintenance cost, procurement cost, and reversing the current operating deficit. The proposed Street Sweeping rates take into consideration common areas or newly improved areas that are not currently being swept as well as the disposal of the street sweeping refuse. The disposal and street sweeping rates that make up the Solid Waste Enterprise Fund need to be self – supported by the rates. It is important to note that rates for solid waste have not increased in 13 years with the last increase taking place in 2009. If the Prop 218 increase is approved the new rates would become effective September 1, 2022, and subsequent increase would take place July 1 of 2023, 2024, 2025 and 2026.
The three proposed rates are categorized as follows and will be explained in detail in our presentation along with information on
• Option #1 – Break Even
• Option #2 - Build Reserve
• Option #3 – Repayment and Reserve
City Staff is recommending Option 2 – where there is an initial jump in cost for residential customers in the first year and smaller and consistent increases in the years 2-5. The proposed increases between Option #1 and #2 are similar and building a reserve would allow the Solid Waste fund to prepare for unknown cost increases in procurement, reporting, education, implementation, operations and maintenance. Staff acknowledges the increased cost in commercial rates due to SB1383 and the mandatory recycling of organics. Option 2 could also provide a mechanism for the City to assist in the implementation of mandatory organics recycling by providing some funding to retrofit commercial enclosures or build new enclosures to accommodate shared bins and expanded pickups.
RECOMMENDED ACTION BY CITY COUNCIL
1. Staff recommends the Council direct the consultant to proceed with Option 2- Build Reserve of the proposed Prop 218 rates for the Prop 218 process.
POLICY ALTERNATIVE(S)
1. The Council can choose a different option or request modifications to the rates or reject the proposed rates.
Meeting Date: 4/20/2022
Agenda Item: 6.2