Madera City Council
August 17, 2022

2 Summary of Opinions
Opinion Unit Type of Opinion
Governmental Activities Unmodified
Business-Type Activities Unmodified
Discretely Presented Component Unit Adverse
General Fund Unmodified
General Development Impact Fee Special Revenue Fund Unmodified Solar Energy Lease Capital Projects Fund Unmodified
Water Enterprise Fund Unmodified
Sewer Enterprise Fund Unmodified
Solid Waste Enterprise Fund Unmodified
Drainage Operations Enterprise Fund Unmodified
Aggregate Remaining Fund Information Unmodified
Basis for Adverse Opinion on Discretely Presented Component Unit The financial statements referred to above do not include financial data for the City’s discretely presented component unit. Accounting principles generally accepted in the United States of America require financial data for those component units to be reported with the financial data of the City’s primary government unless the City also issues financial statements for the financial reporting entity that include the financial data for its component units. The City has not issued such reporting entity financial statements. Because of this departure from accounting principles generally accepted in the United States of America, the assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenses of the discretely presented component unit would have been presented as 100% of the assets, net position, and revenues, respectively.

Adverse Opinion
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on Discretely Presented Component Unit” paragraph, the financial statements referred to above do not present fairly the financial position of the discretely presented component unit of the City of Madera, as of June 30, 2021, or the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Unmodified 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 of Madera, 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.

Emphasis of a Matter
Implementation of GASB Statement No. 84
As discussed in Note 1 to the financial statements, the City implemented GASB Statement No. 84, Fiduciary Activities. As a result of the implementation, the City converted the former agency funds, which previously reported assets and liabilities only, to custodial funds and reported a restatement of its net position in the amount of $380,534.

Our opinion is not modified with respect to this matter.

To the Honorable Mayor and Members
of the City Council of the City of Madera
Madera, California

3 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, Schedule of Changes in Net Pension Liability and Related Ratios, Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, Schedules of Contributions, and Schedule of Changes in Total OPEB Liability and Related Ratios, on pages 5 through 20 and 117 through 124 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 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 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 Budgetary Comparison Schedules 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 July 18, 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.

Santa Ana, California
July 18, 2022
4 This page intentionally left blank.

City of Madera
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
5 This narrative overview of the City of Madera's financial performance provides an analysis of the City's financial activities for the fiscal year ended June 30, 2021. Please read it in conjunction with the accompanying basic financial statements and the accompanying notes to those financial statements.

Financial Highlights
 The City's government-wide total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources at the close of the fiscal year by $316.1 million. Of this amount, $23.7 million is in unrestricted net position and available to meet the City's ongoing commitments to citizens and creditors.

In addition, the City’s restricted net position totals $47.3 million and is dedicated to specific purposes. Lastly, net position of $245.1 million is the City’s net investment in capital assets.  The City’s total net position increased by $18.0 million or 6.1% during 2020-2021 to $316.1 million from $298.1 million.
 At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $75.0 million, a decrease of $4.5 million or 5.63% in comparison with the prior year. Approximately $4.0 million or 5.4% of this amount is available for spending at the City’s discretion (unassigned fund balance).  The City's General Fund, Measure K Sales Tax, Code Enforcement, Insurance Reserve, Payroll Clearing, Community Development and LEA Tire Grants, ended the year with a fund balance of $30.7 million, which represents a net increase of approximately $5.6 million from the previous year. The General Fund unassigned balance of $5.5 million is available for carryover to fund future general fund expenditures.  Net Pension Liability increased by $2.3 million or 4.7% during 2020-2021 to $51.5 million from $49.2 million. Deferred outflows of resources related to pensions increased by $0.7 million or 7.6% and deferred inflows of resources related to pensions decreased by $1 million or 50.2%. The Net Pension Liability is based on an Actuarial Valuation and there was no change in the discount rate of 7.15% from the prior year.

During this year, the rates for water and sewer services remained static. Prior to this year, incremental rate increases over the subsequent five years were approved by Council during the second quarter of calendar year 2015. Those rate increases took effect in fiscal year 2016 and were increased between 9-10% during each of the five years covered in the rate schedule, except for FY 2018-19 when Council considered a revised water rate analysis and adjusted the increase to 6%. In October 2021, the City issued an RFP for a Proposition 218 Rate Study for water, sewer, storm drainage and solid waste utility rates. It is anticipated that the new rate study will be considered by City Council in June 2022.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
6 Overview of the Financial Statements
This annual report consists of a series of financial statements. These statements include all activities of the City of Madera, using the integrated approach as prescribed by GASB Statement No. 34. The Statement of Net Position and Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City's finances. Fund financial statements tell how these services are financed in the short-term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside the Government.

Reporting the City as a Whole
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting method used by most private sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid out.

The statement of net position presents information on all the City's assets, deferred outflows, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as one indicator of whether the City's financial position is improving or deteriorating.

The statement of activities presents information showing how the City's net position changed in the most recent fiscal year. All changes of 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 on this statement for some items that will result in cash flows in future fiscal periods (e.g., earned but unused vacation leave).

The government-wide financial statements of the City are divided as follows:

Governmental Activities: Most of the City's basic services are included here such as public safety, transportation (street and roads), community development, culture and recreation and general government.

These services are primarily financed by property and sales taxes and federal and state grants.

Business-type Activities: The City charges fees to customers to cover the costs of services provided. The City's utilities, water, sewer, community sanitation (refuse and street cleaning), golf course, and airport, as well as public transit services are included here.

The government-wide financial statements can be found on pages 24-27 of this report.

Fund financial statements. The 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 a particular purpose 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 into three categories: governmental, proprietary and fiduciary funds.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
7 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 reconciliations 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 Madera maintains nineteen individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, General Development Impact Fee Fund, and Solar Energy Lease – Capital Projects Fund all of which are considered to be major funds. Data from the other sixteen funds are combined into a single aggregated presentation.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for the General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance to this budget.

The basic governmental fund financial statements can be found on pages 32-38 of this report.

Proprietary funds. The City has two different types of proprietary funds, enterprise funds and internal service funds.

Enterprise funds are used to report the same functions presented 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, and includes community sanitation, sewer disposal, water utilities and transit services.

Internal service funds are used to account for activities that are supported by user charges primarily to the City's other programs and activities and include fleet management, facility maintenance, and computer replacement. Because all of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Water, Sewer, Solid Waste, and Drainage Operations funds since they are all major funds. Individual fund data for each of these non-major enterprise funds is provided in the form of combining statements elsewhere in this report. All of the internal service funds are combined into a single, aggregated presentation in the fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 40-45 of this report.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
8 Fiduciary funds. Fiduciary funds are used 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 fiduciary fund financial statements can be found on pages 49-50 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 government-wide and fund statements. The notes to the basic financial statements can be found on pages 57-121 of this report.

Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits and other post-employment benefits to its employees, and budgetary comparison schedules.

Required supplementary information can be found on pages 125-134 of this report.

Individual Fund Statements. Individual fund statements in connection with non-major governmental and enterprise funds are presented immediately the required supplementary information, which can be found on pages 138-177 of this report.

Government-wide Financial Analysis
Below is a table showing the City's net position for the fiscal year ended June 30, 2021, with comparative data for the fiscal year ended June 30, 2020.
2021 2020 2021 2020 2021 2020
Assets:

Current and other assets $ 104,291,965 $ 89,506,833 $ 48,417,863 $ 39,841,899 $ 152,709,828 $ 129,348,732 Capital Assets 196,974,509 185,695,023 106,292,493 106,911,614 303,267,002 292,606,637 Total assets 301,266,474 275,201,856 154,710,356 146,753,513 455,976,830 421,955,369 Deferred outflows of resources 9,130,947 8,347,124 2,073,579 2,090,761 11,204,526 10,437,885 Liabilities:

Current and other liabilities 23,267,879 7,370,919 8,619,361 7,039,842 31,887,240 14,410,761 Noncurrent liabilities 71,091,824 68,578,034 46,864,701 48,890,485 117,956,525 117,468,519 Total liabilities 94,359,703 75,948,953 55,484,062 55,930,327 149,843,765 131,879,280 Deferred inflows of resources 515,271 1,444,949 922,153 1,007,249 1,437,424 2,452,198 Net position:

Net investment in capital assets 178,947,614 160,970,918 65,967,085 64,433,636 244,914,699 225,404,554 Restricted 46,349,016 55,679,367 963,474 1,166,101 47,312,490 56,845,468 Unrestricted (9,774,183) (10,495,207) 33,447,161 26,306,961 23,672,978 15,811,754 Total net position $ 215,522,447 $ 206,155,078 $ 100,377,720 $ 91,906,698 $ 315,900,167 $ 298,061,776 City of Madera's Net Position
Governmental
Activities
Business-Type
Activities Total
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
9 As of June 30, 2021, the City's government-wide total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $315.9 million. Governmental activities finished the year with a positive net position balance of $215.5 million, an increase of $9.4 million, or 4.5% compared to 2020. Business-type activities finished the year with a positive balance of $100.4 million, an increase of $8.5 million or 9.2% compared to 2020. Net position, as noted earlier, may serve over time as a useful indicator of the City's financial position. Of the total net position, $244.9 million or 77.5% is the City's net investment in capital assets (e.g., land, buildings and improvements, machinery and equipment and the road network) less any related debt used to acquire those assets that is still outstanding.

The City's net investment in capital assets increased by $19.5 million, restricted net position decreased by $9.5 million and unrestricted net position increased by $7.9 million, accounting for the increase in total net position of $18 million.

The increase in net investment in capital assets is primarily due to additions to capital assets of $24.3 million offset by depreciation expense of $13.1 million a decrease in capital-related debt of $2.3 million, and a reclassification of unspent proceeds of $6.3 million from unrestricted net position to net investment in capital assets in the current year. The decrease to restricted net position represents the change in resources that are subject to external restrictions on their use. Net position restricted for public works and transportation increased by $0.2 million, capital projects decreased by $8.8 million and debt service decreased by $0.2 million compared to prior year. The increase to unrestricted net position is due to a change in resources available to fund City programs for citizens and debt obligations to creditors.

Restricted net position represents $47.3 million or 15.0% of the total. Restricted net position represents those resources that are subject to external restrictions on how they may be used. These restrictions are established by bond covenants or restrictions on the use of funds are set forth by state or federal regulations.

Unrestricted net position represents those resources which may be used to meet the City's ongoing commitments to citizens and creditors. Government-wide unrestricted net position represents $23.7 million or 7.5% of the total net position, which is an increase of $7.9 million or 49.7% from the previous year. Governmental activities account for a negative $9.8 million of the total unrestricted net position and increased by $0.7 million or 6.9% compared to last year.

Business-type activities account for $33.4 million of the total unrestricted net position and increased by $7.1 million or 27.1% compared to last year.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
10 The following table indicates the changes in net position for governmental and business-type activities:
2021 2020 2021 2020 2021 2020
Revenues:

Program revenues:

Charges for services $ 7,700,139 $ 5,745,761 $ 33,368,637 $ 30,645,300 $ 41,068,776 $ 36,391,061 Operating grants and contributions 10,035,691 9,138,508 - 2,413,681 10,035,691 11,552,189 Capital grants and contributions 2,948,500 701,822 1,576,982 3,561,444 4,525,482 4,263,266 Total program revenues 20,684,330 15,586,091 34,945,619 36,620,425 55,629,949 52,206,516 General revenues:

Property taxes 11,020,353 11,045,364 237,264 228,943 11,257,617 11,274,307 Sales and use taxes 16,894,337 15,227,811 - - 16,894,337 15,227,811 Franchise taxes 721,028 688,563 - - 721,028 688,563
Other taxes 1,813,979 2,019,087 - - 1,813,979 2,019,087 Total taxes 30,449,697 28,980,825 237,264 228,943 30,686,961 29,209,768 Investment earnings (97,360) 1,247,564 340,816 548,322 243,456 1,795,886 Gain (loss) on sale of capital assets 35,469 (42,920) 135,300 86,556 170,769 43,636 Miscellaneous 317,971 1,205,394 113,658 78,165 431,629 1,283,559 Total general revenues and transfers 30,705,777 31,390,863 827,038 941,986 31,532,815 32,332,849 Total revenues 51,390,107 46,976,954 35,772,657 37,562,411 87,162,764 84,539,365 Expenses:

General government 9,782,970 9,574,371 - - 9,782,970 9,574,371 Public safety 18,826,073 20,182,145 - - 18,826,073 20,182,145 Social services 133,639 422,270 - - 133,639 422,270
Public ways and facilities 3,741,698 7,369,948 - - 3,741,698 7,369,948 Community development 5,993,699 4,056,088 - - 5,993,699 4,056,088 Culture and recreation 3,509,000 4,654,520 - - 3,509,000 4,654,520 Interest on long-term debt 692,894 509,977 - - 692,894 509,977 Water - - 7,427,430 8,295,137 7,427,430 8,295,137
Sewer - - 9,216,976 10,038,430 9,216,976 10,038,430
Solid waste - - 5,758,119 5,875,225 5,758,119 5,875,225 Drainage operations - - 943,353 1,110,864 943,353 1,110,864 Local transit - - 2,499,127 2,403,789 2,499,127 2,403,789 Golf course - - 94,635 103,861 94,635 103,861
Airport - - 787,373 801,043 787,373 801,043
Total expenses 42,679,973 46,769,319 26,727,013 28,628,349 69,406,986 75,397,668 Change in net position 8,710,134 207,635 9,045,644 8,934,062 17,755,778 9,141,697 Transfers 574,622 352,225 (574,622) (352,225) - -
Change in net position after transfers 9,284,756 559,860 8,471,022 8,581,837 17,755,778 9,141,697 Special items:

Transfers of assets from Successor Agency - 2,062,571 - - - 2,062,571 Total special items 2,062,571 - - - 2,062,571 -
Increase (decrease) in net position 9,284,756 2,622,431 8,471,022 8,581,837 17,755,778 11,204,268 Net position, beginning of year 206,155,078 203,532,647 91,906,698 83,324,861 298,061,776 286,857,508 Net position, end of year $ 215,439,834 $ 206,155,078 $ 100,377,720 $ 91,906,698 $ 315,817,554 $ 298,061,776 Governmental Activities Business Type Activities Total
Statement of Activities
For the Year Ended June 30, 2021
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
11 Governmental activities. Governmental activities account for $215.7 million or 68.2% of the total government-wide net position. This is an increase of $9.6 million or 4.6% compared to June 30, 2020.

Total governmental revenues for the year were $51.4 million, which is $4.5 million or 9.5% more than in 2020.  Operating grants and contributions decreased by $5.5 million or 35.5% from the previous year primarily due to receiving less grant funds from general government, public protection, and public ways and facilities.  Capital grants and contributions increased by $2.3 million or 327.0% from the previous year due to an increase in developer contributions of about $1.4 million.  Taxes, including property, sales, franchise, and other taxes account for approximately $30.4 million or

49.6% of the City's governmental activities revenue. Total tax revenue decreased $25 thousand or 0.2% from the previous year.
 Investment earnings decreased by $1.3 million or 104.0% from the previous year due primarily to lower interest rates of return on investments.

Total governmental expenses for the year were $42.6 million, which is $4.2 million or 8.9% less than in 2020.  General governmental expenses increased by $208 thousand or 2.2% from the previous year.  Public safety expenses decreased by $1.4 million or 6.7% from the previous year.  Public ways and facilities expenses decreased by $3.7 million or 50.4% from the previous year.  Community development expenses increased by $1.9 million or 47.8% from the previous year.  Culture and recreation expenses decreased by $1.1 million or 24.6% from the previous year.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
12 Revenues by Source - Governmental Activities
Expenditures and Program Revenues - Governmental Activities $20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$-
Franchise taxes

1.44°0
In Yes hnent earnings
-0. 19°'()
General Public safety Public ways Social
govenunent and facilities services
Charges for serYices
15 .41 °o
Property taxes

22.06°0
Culture and
recreation
Community
development
Expenses
Program
Revenues
Operating grants

17.00°0
Capital grants
5 .80°0
Interest on
long-term
debt
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
13 Governmental program revenues that include charges for services and grants specific to certain programs account for $20.7 million or 40.3% of the total governmental activity revenue. The amounts necessary to fully fund the governmental activity programs are made up of "general" revenues such as taxes, interest, and grants and contributions.

Business-type Activities. Business-type activities account for $100.4 million or 31.8% of the total government-wide net position. This is an increase of $8.5 million from the prior year. Net investment in capital assets accounts for $66.0 million or 65.7% of the total net position and is an increase of $1.5 million from 2020. Restricted net position accounts for $1.0 million, or 1.0% of total net position, represents a decrease of $0.2 million from 2020. Unrestricted net position of $33.4 million, or 33.3% of total net position, represents an increase of $7.1 million from 2020.

Total business-type revenue for the year was $35.8 million, which is $1.8 million or 4.8% less than in 2020.

Charges for services increased by $2.7 million or 8.9% from the prior year. Additional water meters were installed where there were previously no meters. The result of adding meters to customers where no meter was originally installed typically increases charges for services.

Operating grants and contributions decreased by $2.4 million or 100.0% from the prior year in local transit primarily due to reclassification of operating transit grant funds received in fiscal year 2020 to charges for services.

Capital grants and contributions decreased by $2.0 million or 55.6% from the prior year. The fixed route fund received nearly $2.0 million less in federal capital grant funds compared to the previous fiscal year.

Revenues by Source - Business-Type Activities
Opera ting grants

5.56%
Capital grants
4 .43%
Property taxes
0 .67%
Charges for services
8808%
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
14 Expenses and Program Revenues-Business-Type Activities Included in charges for services are user fees relating to the water, sewer, solid waste, drainage, transit, golf course, and airport operations. Operating transit grant funds which are the primary revenue for the transit fund are included in charges for services.

Total business-type expenses for the year were $26.7 million, which is $1.9 million or 6.6% less than in 2020.

Water expenses decreased by $0.9 million or 10.5% compared to the prior year, primarily due to salary savings and operational cost decreases. A multi-year water system construction and maintenance project was completed in the prior year. Maintenance and infrastructure improvements were made over a four-year period and the final costs associated with that project occurred in 2020.

Sewer expenses decreased by $0.8 million or 8.2% compared to the prior year.

Solid Waste expenses decreased by $157 thousand or 2.7% compared to the prior year. $14,000
$12,000
$10.000
$8.000
$6,000
$4,000
$2.000
$-
Water Sewer Solid waste Drainage Local transit Golf course operations
pen ses
Program
Revenues
Airport
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
15 Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. Fund balance is defined in five categories: non-spendable, restricted, committed, assigned and unassigned. Non-spendable fund balances cannot be spent because they are not in spendable form. Restricted fund balances have limitations imposed externally by creditors, granters, contributors, or laws and regulations of other governments. Committed fund balances have self-imposed limitations set in place prior to the end of the period.

Assigned fund balances are constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. Unassigned fund balances are the amounts that have not been assigned to other funds or restricted, committed or assigned to a specific purpose.

All of the City's Governmental Funds ended the year with positive fund balances. The ending fund balance for all funds amounted to $75.0 million, $4.5 million or 5.6% less than the previous year. The decrease is primarily due to the completion of capital projects throughout the year.

Of the total fund balance, $4.0 million or 5.4% is unassigned which, within the limitations of the fund's purpose, is available for spending at the City's discretion. The remainder of the fund balance is either non-spendable, restricted, committed, or assigned to indicate that it is not in spendable form, legally required to be maintained intact, restricted for a particular purpose, committed for a particular purpose, or assigned for a particular purpose. The details of the remainder are as follows:

Nonspendable
Prepaid items $ 47,451
Inventories 59,681
Advances to other funds 36,721
Total nonspendable 143,853
Restricted
Community development 11,620,421
Park development 104,975
Parking improvements 126,261
Public works and transportation 12,137,998
Special assessment project 460,571
Public protection 219,724
Capital projects and improvements 21,022,921
Total restricted 45,692,871
Committed
General Fund stabilization reserve 9,354,964
Measure K - Police/Fire Protection 1,840,000
Total committed 11,194,964
Assigned
Golf course capital 20,000
Debt service 1,034,200
OPEB liability 97,339
Insurance reserve 3,038,867
Health insurance premiums 2,714,000
Future annual stipend payments 1,300,000
Measure K - Police/Fire Protection 5,701,872
Total assigned 13,906,278
Unassigned 4,022,098
Total fund balances $ 74,960,064
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
16 General Fund
The General Fund is the chief operating fund of the City. As of June 30, 2021, the total fund balance (including all categories) of the general fund was $30.7 million, up $5.6 million from June 30, 2020. The total fund balance of $30.7 million includes non-spendable balances of $0.1 million, restricted balances of $1.1 million, committed balances of $11.2 million, assigned balances of $12.9 million, and an unassigned balance of $5.5 million.

The assigned fund balance increased $7.1 million when compared to June 30, 2020, primarily due to the $2.7 million increase to the health insurance premiums reserve, the $2.7 million increase to the health insurance premiums reserve, the $1.3 million increase for future annual stipend payments, the $1.0 million increase in Measure K fund balance, and the $1.0 million increase in debt service balance.

The unassigned fund balance decreased $2.0 million when compared to June 30, 2020, primarily due to Council's decision to cover future health insurance premiums of all employees in the amount of $2.7 million and $1.3 million to cover future annual stipends. The $5.5 million unassigned portion represents the amount carried over to offset the impact of any revenue shortfall that may occur in the next year due to economic uncertainty and to augment the maintenance of the water and sewer infrastructure as necessary. As a measurement of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures.

Unassigned fund balance represents approximately 17.2% of total General Fund expenditures, while total fund balance represents approximately 97.2% of total General Fund expenditures.

Other Major Funds
The General Development Impact Fee Special Revenue Fund, a major fund, had a $0.5 million increase in fund balance during Fiscal Year 2021. The ending fund balance of $15.7 million is restricted for capital projects and improvements.

Proprietary Funds. As indicated in the description of proprietary funds, there are two types of funds, enterprise and internal service funds. The City’s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail.

The City's enterprise funds and internal service funds ended the year with total net position as follows:

Water Fund $ 38,473,656
Sewer Fund 21,350,436
Solid waste Fund 570,730
Drainage Operations Fund 18,527,099
Local Transit Fund 8,131,554
Golf Course Fund 694,759
Airport Fund 12,629,486
Fleet Maintenance Fund 4,837,022
Facilities Maintenance Fund 185,376
Technology Fund 299,907
As noted earlier in the discussion of business-type activities, revenues for local transit services decreased by 59.1% in the current year from reduction in services due to the pandemic. The water fund had increased revenue of $1 million compared to 2020 while the sewer, solid waste, and drainage funds experienced approximately the same revenue compared to last year.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
17 General Fund Budgetary Highlights
The general fund ended fiscal year 2021 with $10.9 million under budget. This variance was primarily the result of $2.5 million more revenues than anticipated, and $8.2 million expenditures under budget.  Actual expenditures for General Government came in $155 thousand under budget due to savings in personnel costs, property/liability/fidelity insurance, contracted services, and intergovernmental charges.  Actual expenditures for Public Protection came in at $1.0 million under budget due to savings in contracted services and personnel costs.
 Actual expenditures for Public Ways and Facilities were $606 thousand under budget due to savings in supplies and materials, contracted services, and personnel costs.  Actual expenditures for Community Development came in at $315 thousand under budget due to savings in contracted services and personnel costs.
 Actual expenditures for Culture and Recreation came in at $505 thousand under budget due to savings in personnel costs related to COVID-19 reduction in recreational programs, contracted services and conference/training.
 Actual expenditures for Capital Outlay were $5.3 million under budget due to the carrying-forward of capital project budgets that were not started or completed during the current fiscal year.

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, amount to $303.5 million (net of depreciation), an increase of $10.9 million compared to 2020. This increase is primarily due to the additions to capital assets of $24.5 million offset by depreciation expense of $13.1 million.

Major capital asset additions this year include the following:
 Road network improvements - $11.1 million
o Developer donations (sidewalk, pavement, pipelines, and others) - $2.5 million o Various other street improvement projects - $6.9 million o Various parks improvement projections - $608 thousand o Various traffic signal improvement projects - $1.1 million  Fire station - $851 thousand
 Equipment, property, and software purchases - $1.4 million  Water Well improvement - $2.1 million
 Solar Power Improvement - $8.8 million
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
18 During the year, the City made improvements to various streets, parks, sewer mains, and received developer- donated infrastructure. Capital projects constructed by the City include:
 Sewer mains replacement: various locations
 Street improvements: Raymond Road, Cleveland Ave, Olive Ave, Gateway Dr, Gateway Dr, Central Ave, Stadium Road, Maple Street, Santa Cruz Street, Monterey Street, Lilly Street and Vineyard Avenue.
 Trail construction: Gateway Drive
 Water storage tank installation: Avenue 17 and Lake Street  Water Well: Sharon Blvd and Ave 17
Developer constructed infrastructure was constructed in conjunction with the partial list of projects shown below:
 Melanie Meadows Phase I, II, III
 Madera County Public Health and Social Service
 West Cleveland Ave (between Road 24 and Westberry Boulevard) 2021 2020 2021 2020 2021 2020
Land $ 12,409,951 $ 12,399,951 $ 9,347,017 $ 9,347,017 $ 21,756,968 $ 21,746,968 Construction in progress 29,218,024 16,590,872 1,612,044 1,426,412 30,830,068 18,017,284 Buildings and improvements 24,965,790 24,965,790 69,924,082 67,924,082 94,889,872 92,889,872 Equipment 16,399,608 17,135,262 5,672,034 5,998,392 22,071,642 23,133,654 Infrastructure 307,244,162 300,782,173 101,307,678 100,160,267 408,551,840 400,942,440 Less: accumulated depreciation (193,263,026) (186,179,025) (81,570,362) (77,944,556) (274,833,388) (264,123,581) Total $ 196,974,509 $ 185,695,023 $ 106,292,493 $ 106,911,614 $ 303,267,002 $ 292,606,637 Capital Assets
Governmental Activities Business Type Activities Total
Detailed information on the City's capital assets can be found in Note 6 on pages 80-82.

Long-term Debt. The City's long-term debt as of June 30, 2021, was $64.3 million with governmental activities accounting for $24.3 million or 37.8%, and business-type activities accounting for $40.0 million or 62.2%. The total debt decreased by $2.57 million or 3.8% during the current fiscal year. The reason for the decrease was due to the principal payments made during the current year.

General obligation debts are direct obligations of the City and are backed by the full faith and credit of the City requiring voter approval and may have a tax rate set to cover repayment. State statutes limit the amount of general obligation debt to 15% of the City's total assessed valuation. The City of Madera's debt limit is $535.8 million. Detailed information on the City's long-term debt activity can be found in Note 7 on pages 83-92. 2021 2020 2021 2020 2021 2020
Capital leases $ 19,432,000 $ 19,595,500 $ - $ - $ 19,432,000 $ 19,595,500 Loans payable 525,400 633,600 7,309,220 7,831,103 7,834,620 8,464,703 Bonds payable 4,331,850 4,495,005 32,713,042 34,322,823 37,044,892 38,817,828 Total $ 24,289,250 $ 24,724,105 $ 40,022,262 $ 42,153,926 $ 64,311,512 $ 66,878,031 Long-Term Debt
Governmental Activities Business Type Activities Total
City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
19 Economic Factors and Next Year's Budgets and Rates
The 2021 economy experienced significant challenges associated with the COVID-19 pandemic. The state continued to observe the state mandated “stay at home” order, which continued to affect many businesses. This continued to result in a reduction in travel, entertainment related sales such as dine in restaurants, theaters and hotels. The fuel sales also continued to decline because of the reduction in driving for work and travel. Throughout the pandemic, the national economy, as well as local economies, were experiencing significant reductions in economic growth and a continued decline in unemployment. Surprisingly, as the economy progressed through the pandemic, unemployment decreased to 9.7% by June 2021, down from 12.1% in the previous year. In early 2022 the economy began to open, some businesses opened to limited service and many employees returned to work. Unemployment figures are expected to improve, sales will experience some recovery as businesses continue to open up. In California, new home starts are expected to rise modestly over the next two years, as well as the value of existing homes.

The city experienced a decrease in its investment earnings from its previous year primarily due to a lower rate of return on investments compared to prior fiscal year. Measure K sales tax contributed to the increase in cash and investments bringing in $5.4 million in additional sales tax revenue. This allowed the City to expand its public safety sector and afford its citizens more police protection and the addition of a new fire station. The new fire station was financed by bonds and will be repaid with Measure K funds. The fire station was completed June 2021.

The City purchased the adjoining property to the Police Building thereby allowing the expansion for police operations.

Through federal and state grants the City was able to construct the new Madera Transit Facility which was completed April 2021. Additionally, two new All Star buses were purchased with the grant funds.

The City has entered into a lease/purchase agreement to finance the installation of solar panels, new HVAC system and LED streetlamps, resulting in a substantial savings in energy costs.

The national GDP grew only 4.9% over the final quarter of 2021. Economic growth remained consistent with the prior year over the first few months of 2022. At the state level, California GDP continues to be the highest of all the states even though there was a slight decrease for the current fiscal year. Because the Central Valley relies heavily on an agriculture-based economy, profits are not as lucrative and challenges such as weather (drought), labor availability, and government subsidies all play into the bottom line.

The City of Madera has continued to see negative effects of the pandemic throughout this fiscal year. Budgets were adjusted to reflect a more conservative outcome of tax revenues as well as spending was curtailed as an attempt to negate the pandemics affect. The City of Madera, along with other cities and states, has continued its’ stay at home policies and are actively working with authorities to contain the outbreak of COVID-19.

In the last year, the County of Madera had added approximately 3,150 jobs. In January 2022, the unemployment rate in the County was 7.7%, down from the yearly high of 12.9% in June of 2021, according to the United States Bureau of Labor Statistics. The effect of the pandemic appeared to be waning over the past year. At the state level, unemployment is averaging 5.7%.

The City of Madera has seen a decline in certain sectors in consumer spending, especially those sectors related to travel and entertainment, however on-line sales and building & construction have experienced some growth in sales tax. This trend is reflected in stable overall sales tax revenue. Sales tax figures are projected to meet expected budget amounts.

Economic development activity continues to remain stable and is seen through the addition of commercial, industrial and residential buildings. The industrial vacancy rate continues to remain under 1%. In response, the City began a joint venture with a local company to develop Freedom Industrial Park, a 100-acre industrial site. The first tenant of the complex has moved in and employs about 100 individuals.

City of Madera
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2021
20 The City is actively reaching out to the business community to fill a future, second building that has already been approved for the site. The grounds will be “plug and play” ready, with full infrastructure and rail access. The intersection at Avenue 17 and State Route (SR) 99 remains a primary focus of the City’s economic development efforts. The site currently includes Love’s Madera Travel Center and more than $10 million in infrastructure improvements. It is expected that the improvements will spur additional development around the interchange. Another development just to the north of Madera is Matilda Torres High School. The school requires sewer and water infrastructure expansion, which has generated interest in development of properties in the immediate vicinity.

The number of residential homes permitted over the previous fiscal year remains continues to grow, with 153 homes permitted in fiscal year 2020 and increasing to 200 in fiscal year 2021. It is anticipated that the growth in homes permitted will continue with several subdivisions in northwest quadrant currently being built. The projects cover approximately 3 square miles, over 5,000 new homes, retail and commercial use, elementary schools and expanses of open space and park amenities.

Water is and will remain a key element in the regional economy. The City is taking an active role in regional groundwater management efforts and is planning the next stages of improvements to address long-term water service for current residents and future development. Engineering costs for capital improvements are anticipated to be funded on a pay-as-you-go basis. Potential projects include the replacement of manual water meters, installation of new water meters, recoating of the water tower and the design of water main upgrades throughout the City. These projects have planned funding from revenue in the Water Utility Fund. A new water storage tank, pump station and associated transmission mains are included in the Capital Improvement Program with the initial engineering efforts taking place in 2021/21. The tank represents a critical component of infrastructure necessary to counter continual drought conditions in the valley. Construction funding for the tank project will require special financing either through grants, municipal bonds or low interest loans.

While 2022 continued to experience the effects of the pandemic the economic outlook for the year ahead remains cautiously optimistic even though the COVID-19 pandemic has disrupted the world’s economy. Interest rates have declined but are expected to increase due to the inflationary effect of the federal governments stimulus packages issued over the last year. While the pandemic has impaired economic growth in some industries such as entertainment and travel, other industries have experienced continued growth including building and construction and sales tax related to on-line sales remain constant. Containment efforts have been prolonged (over a year) and are ongoing. Once containment is achieved, economic production is expected to be restored. Given these local and national projections, the City will continue with a prudent, conservative financial planning model as it makes budget decisions for the future.

Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City of Madera's finances and to demonstrate the City's accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Financial Services Director, City of Madera, 205 W. 4th Street, Madera, CA 93637.

BASIC FINANCIAL STATEMENTS
21 This page intentionally left blank.
22 GOVERNMENT-WIDE FINANCIAL STATEMENTS
23 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 76,807,229 $ $ 44,474,057 $ 121,281,286 Accounts receivable, net 10,902,850 4,021,036 14,923,886 Prepaid items 85,279 49,879 135,158
Inventories 59,681 - 59,681
Due from Fiduciary Funds 410,411 - 410,411
Internal balances 1,090,583 (1,090,583) -
Total current assets 89,356,033 47,454,389 136,810,422
Noncurrent assets:

Restricted cash and investments 6,262,355 963,474 7,225,829 Notes receivable 8,003,577 - 8,003,577
Land held for resale 670,000 - 670,000
Capital assets:

Non-depreciable 41,627,975 10,959,061 52,587,036
Depreciable, net 155,346,534 95,333,432 250,679,966
Total capital assets 196,974,509 106,292,493 303,267,002 Total noncurrent assets 211,910,441 107,255,967 319,166,408 Total assets 301,266,474 154,710,356 455,976,830

DEFERRED OUTFLOWS OF RESOURCES
Related to OPEB 568,869 74,052 642,921
Related to pensions 8,562,078 1,999,527 10,561,605
Total deferred outflows of resources 9,130,947 2,073,579 11,204,526 June 30, 2021
Statement of Net Position
City of Madera
Primary Government
See accompanying Notes to the Basic Financial Statements. 24 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 8,810,492 3,734,851 12,545,343
Accrued payroll 846,348 92,091 938,439
Deposits 627,873 443,891 1,071,764
Interest payable 117,273 1,577,531 1,694,804
Unearned revenue 11,649,038 174,627 11,823,665
Compensated absences - due within one year 182,655 224,083 406,738 Long-term debt - due within one year 1,034,200 2,372,287 3,406,487 Total current liabilities 23,267,879 8,619,361 31,887,240 Noncurrent liabilities:

Aggregate net pension liability 42,898,235 8,583,714 51,481,949 Total OPEB liability 3,320,208 452,058 3,772,266
Compensated absences - due in more than one year 1,618,331 178,954 1,797,285 Long-term debt - due in more than one year 23,255,050 37,649,975 60,905,025 Total noncurrent liabilities 71,091,824 46,864,701 117,956,525 Total liabilities 94,359,703 55,484,062 149,843,765

DEFERRED INFLOWS OF RESOURCES
Related to service concession arrangement - 16,670 16,670 Gain on refunding of debt - 303,146 303,146
Related to OPEB 137,764 22,408 160,172
Related to pensions 377,507 579,929 957,436
Total deferred inflows of resources 515,271 922,153 1,437,424

NET POSITION
Net investment in capital assets 178,947,614 65,967,085 244,914,699 Restricted:

Community development 11,620,421 - 11,620,421
Park development 104,975 - 104,975
Parking improvements 126,261 - 126,261
Public works and transportation 12,663,310 - 12,663,310 Special assessment project 460,571 - 460,571
Law enforcement 350,557 - 350,557
Capital projects and improvements 21,022,921 - 21,022,921 Debt service - 963,474 963,474
Total restricted 46,349,016 963,474 47,312,490
Unrestricted (deficit) (9,774,183) 33,447,161 23,672,978 Total net position $ 215,522,447 $ 100,377,720 $ 315,900,167 Primary Government
City of Madera
Statement of Net Position (Continued)
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 25 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities:

General government $ 206,027 9,782,970 $ 868,717 $ 99,363 $ 1,174,107 $ Public protection 18,826,073 793,663 1,112,671 - 1,906,334 Social services 133,639 - - - -
Public ways and facilities 3,741,698 2,715,216 5,345,692 2,849,137 10,910,045 Community development 3,054,194 5,993,699 2,591,111 - 5,645,305 Culture and recreation 3,509,000 931,039 117,500 - 1,048,539 Interest on long-term debt 692,894 - - - -
Total governmental activities 42,679,973 7,700,139 10,035,691 2,948,500 20,684,330 Business-type activities:

Water 13,464,704 7,427,430 - 73,515 13,538,219
Sewer 10,567,703 9,216,976 - 784,905 11,352,608
Solid waste 5,758,119 5,874,476 - 16,349 5,890,825
Drainage operations 943,353 866,007 - 204,270 1,070,277 Local transit 1,980,522 2,499,127 - 417,507 2,398,029
Golf course 94,635 78,053 - - 78,053
Airport 787,373 537,172 - 80,436 617,608
Total business-type activities 26,727,013 33,368,637 - 1,576,982 34,945,619 Total primary government $ 41,068,776 69,406,986 $ 10,035,691 $ 4,525,482 $ 55,629,949 $

City of Madera
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2021
Program Revenues
See accompanying Notes to the Basic Financial Statements. 26 Governmental Business-type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government $ - (8,608,863) $ (8,608,863) $
Public protection (16,919,739) - (16,919,739)
Social services - (133,639) (133,639)
Public ways and facilities 7,168,347 - 7,168,347
Community development - (348,394) (348,394)
Culture and recreation (2,460,461) - (2,460,461)
Interest on long-term debt (692,894) - (692,894)
Total governmental activities (21,995,643) - (21,995,643) Business-type activities:

Water 6,110,789 - 6,110,789
Sewer 2,135,632 - 2,135,632
Solid waste 132,706 - 132,706
Drainage operations 126,924 - 126,924
Local transit (101,098) - (101,098)
Golf course (16,582) - (16,582)
Airport (169,765) - (169,765)
Total business-type activities - 8,218,606 8,218,606
Total primary government 8,218,606 (21,995,643) (13,777,037) General Revenues and Transfers:

General revenues:

Taxes:

Property taxes 11,020,353 237,264 11,257,617
Sales and use taxes 16,894,337 - 16,894,337
Franchise taxes 721,028 - 721,028
Other taxes - 1,813,979 1,813,979
Total taxes 30,449,697 237,264 30,686,961
Investment income (loss) (97,360) 340,816 243,456
Gain on sale of capital assets 35,469 135,300 170,769
Miscellaneous revenue 317,971 113,658 431,629
Transfers (574,622) 574,622 -
Total general revenues and transfers 252,416 31,280,399 31,532,815 Change in net position 8,471,022 9,284,756 17,755,778
Net Position:

Beginning of year 91,906,698 206,155,078 298,061,776
End of year $ 100,377,720 215,439,834 $ 315,817,554 $
For the Year Ended June 30, 2021
Statement of Activities and Changes in Net Position (Continued) City of Madera
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 27 This page intentionally left blank.
28 FUND FINANCIAL STATEMENTS
29 This page intentionally left blank.
30 Governmental Funds Financial Statements
General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Madera, these services include general government, public protection, social services, public ways and facilities, community development, and culture and recreation.

General Development Impact Fee Fund - This fund accounts for and reports the proceeds of the AB1600 development impact fee monies that are restricted or committed to expenditures for the intended purposes.

Solar Energy Lease Capital Projects Fund - This fund accounts for the construction of the Solar Energy Lease Purchase projects. These projects are funded by the Solar Energy Lease Purchase debt obligations. 31 General
Development Solar Energy Lease
General Impact Capital Projects
Fund Fee Fund Fund
ASSETS
Cash and investments $ 36,320,603 $ 18,847,555 $ -
Restricted cash and investments - - 6,262,355
Accounts receivable, net 5,480,927 6,768 -
Notes receivable - - -
Prepaid items 43,441 - -
Inventories 59,681 - -
Due from other funds 2,654,902 - -
Due from Fiduciary Funds 410,411 - -
Advances to other funds 61,201 - -
Land held for resale - - -
Total assets $ 45,031,166 $ 18,854,323 $ 6,262,355

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 1,861,934 $ 2,522,789 $ 823,812
Accrued payroll 810,791 - -
Due to other funds - - 123,385
Deposits payable - 627,799 -
Unearned revenues 11,535,187 - -
Total liabilities 14,207,912 3,150,588 947,197

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 99,480 - -
Total deferred inflows of resources 99,480 - -

Fund Balances:

Nonspendable 139,843 - -
Restricted - 15,703,735 5,315,158
Committed 11,194,964 - -
Assigned 13,906,278 - -
Unassigned (deficit) 5,482,689 - -
Total fund balances 30,723,774 15,703,735 5,315,158
Total liabilities, deferred inflows of
resources, and fund balances $ 45,031,166 $ 18,854,323 $ 6,262,355 Major Funds
City of Madera
Balance Sheet
Governmental Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 32 Non-major Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 16,985,047 $ 72,153,205
Restricted cash and investments - 6,262,355
Accounts receivable, net 5,309,713 10,797,408
Notes receivable 8,003,577 8,003,577
Prepaid items 4,010 47,451
Inventories - 59,681
Due from other funds - 2,654,902
Due from Fiduciary Funds - 410,411
Advances to other funds - 61,201
Land held for resale 670,000 670,000
Total assets $ 30,972,347 $ 101,120,191

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 3,404,790 $ 8,613,325
Accrued payroll 5,624 816,415
Due to other funds 1,502,135 1,625,520
Deposits payable 74 627,873
Unearned revenues 113,851 11,649,038
Total liabilities 5,026,474 23,332,171

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 2,728,476 2,827,956
Total deferred inflows of resources 2,728,476 2,827,956 Fund Balances:

Nonspendable 4,010 143,853
Restricted 24,673,978 45,692,871
Committed - 11,194,964
Assigned - 13,906,278
Unassigned (deficit) (1,460,591) 4,022,098
Total fund balances 23,217,397 74,960,064
Total liabilities, deferred inflows of
resources, and fund balances $ 30,972,347 $ 101,120,191 City of Madera
Balance Sheet (Continued)
Governmental Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 33 This page intentionally left blank.
34 Total Fund Balances - Total Governmental Funds $ 74,960,064 Activities and Changes in Net Position the cost of those assets was allocated over their estimated useful lives as depreciation expenses. This is the amount of capital assets recorded in the current period (net of $582,543 2,827,956 Capital Assets used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Government-Wide Statement of Net Position 196,974,509
Less: capital assets reported in Internal Service Funds (3,407,390) Total capital assets 193,567,119
Long-term liabilities are not due and payable in the current period and therefore were not reported in the Governmental Funds Balance Sheet.

Amount reported in Government-Wide Statement of Net Position Compensated absences - due within one year (182,655)
Compensated absences - due in more than one year (1,618,331) Long-term debt - due within one year (1,034,200)
Long-term debt - due in more than one year (23,255,050) Less: amount reported in Internal Service Funds:

Compensated absences - due within one year 86,804
Compensated absences - due in more than one year 101,691 Total long-term liabilities (25,901,741)
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (117,273) Aggregate net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Net pension liability (42,898,235)
Total OPEB liability (3,320,208)
Less: amount reported in Internal Service Funds:

Net pension liability 2,911,070
(43,307,373)
Deferred outflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred outflows of resources related to OPEB 568,869
Deferred outflows of resources related to pensions 8,562,078 Less: amount reported in Internal Service Funds:

Deferred outflows of resources related to pensions (657,645) Total deferred outflows of resources 8,473,302
Deferred inflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred inflows of resources related to OPEB (137,764) Deferred inflows of resources related to pensions (377,507) Less: amount reported in Internal Service Funds:

Deferred inflows of resources related to pensions 213,359 Total deferred inflows of resources (301,912)
Internal service funds are used by management to charge the cost of fleet management, risk management, information technology, and building maintenance to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position. 5,322,305 Net Position of Governmental Activities $ 215,522,447
Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of Madera
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 35 General
Development Solar Energy Lease
General Impact Capital Projects
Fund Fee Fund Fund
REVENUES:

Property taxes 3,882,014 $ - $ - $
Sales and use taxes 16,894,337 - -
Other taxes 1,516,879 - -
Investment income (loss) (272,673) 143,342 -
Franchise fees 721,028 - -
Licenses and permits 1,555,955 - -
Fines and forfeitures 423,780 - -
Intergovernmental 8,954,582 - -
Charges for services 1,314,019 3,713,231 -
Miscellaneous 405,340 - -
Total revenues 3,856,573 35,395,261 -

EXPENDITURES:

Current:

General government 3,537,496 - -
Public protection 19,631,384 - -
Social services 131,881 - -
Public ways and facilities 1,723,490 183,806 -
Community development 3,646,501 - -
Culture and recreation 2,790,227 6,047 -
Capital outlay 934,925 2,765,788 8,828,030
Debt service:

Principal - 401,700 -
Interest and fiscal charges 192,161 - 538,183
Total expenditures 2,955,641 32,989,765 9,366,213

REVENUES OVER (UNDER) EXPENDITURES 2,405,496 900,932 (9,366,213) OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 91,475 - -
Transfers in 3,562,072 - 538,183
Transfers out (441,429) (390,020) -
Total other financing sources (uses) 3,212,118 (390,020) 538,183 NET CHANGE IN FUND BALANCES 5,617,614 510,912 (8,828,030) FUND BALANCES:

Beginning of year 25,106,160 15,192,823 14,143,188
End of year $ 30,723,774 $ 15,703,735 $ 5,315,158
Major Funds
For the Year Ended June 30, 2021
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Madera
See accompanying Notes to the Basic Financial Statements. 36 Non-major Total
Governmental Governmental
Funds Funds
REVENUES:

Property taxes $ 449,008 $ 4,331,022
Sales and use taxes 16,894,337 -
Other taxes 404,868 1,921,747
Investment income (loss) 452,900 323,569
Franchise fees - 721,028
Licenses and permits - 1,555,955
Fines and forfeitures 28,539 452,319
Intergovernmental 8,687,148 17,641,730
Charges for services 91,433 5,118,683
Miscellaneous 173,556 578,896
Total revenues 10,287,452 49,539,286
EXPENDITURES:

Current:

General government 90,984 3,628,480
Public protection 222,974 19,854,358
Social services - 131,881
Public ways and facilities 1,494,336 3,401,632
Community development 2,192,927 5,839,428
Culture and recreation - 2,796,274
Capital outlay 5,926,861 18,455,604
Debt service:

Principal - 401,700
Interest and fiscal charges - 730,344
Total expenditures 9,928,082 55,239,701

REVENUES OVER (UNDER) EXPENDITURES 359,370 (5,700,415)
OTHER FINANCING SOURCES (USES):

Proceeds from sale of property 421,792 513,267
Transfers in 1,003,500 5,103,755
Transfers out (3,553,181) (4,384,630)
Total other financing sources (uses) (2,127,889) 1,232,392 NET CHANGE IN FUND BALANCES (1,768,519) (4,468,023)
FUND BALANCES:

Beginning of year 24,985,916 79,428,087
End of year $ 23,217,397 $ 74,960,064
City of Madera
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 37 Total Fund Balances - Total Governmental Funds $ (4,468,023) Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position the cost of those assets was allocated over their estimated useful lives as depreciation expenses. This is the amount of capital assets recorded in the current period (net of $576,345 added in internal service funds). 18,538,217
In the Government-Wide Statement of Activities, donated assets are reported as a capital contribution (net of $4,925 added in internal service funds). 1,365,814
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, depreciation expense, net of internal service funds of $589,095, was not reported as expenditures in the Governmental Funds. (8,133,997) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position. (477,798)
Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position Principal payment of long-term debt 401,700
Amortization of bond premium 33,155
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. 4,295 Compensated absences expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (net of $30,083 deducted in internal service funds). 41,600
Revenues in the Government-Wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds. 350,175
Certain pension expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in pension related deferred outflows of resources 811,566 Changes in net pension liabilities (2,139,077)
Changes in pension related deferred inflows of resources 878,954 Certain OPEB expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in OPEB related deferred outflows of resources (8,136) Changes in total OPEB liabilities (421,670)
Changes in OPEB related deferred inflows of resources 27,147 The internal service funds are used by management to charge the costs of fleet maintenance, facilities maintenance, and technology to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 2,563,447
Change in Net Position of Governmental Activities $ 9,367,369 Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of Madera
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 38 Proprietary Funds Financial Statements
Water Fund - This fund is used to account for the activities of the City's water pumping, treatment and distribution operations.

Wastewater Fund - This fund is used to account for the activities of the City's wastewater collection and treatment operations.

Solid Waste Fund - This fund is used to account for the activities of the City's solid waste operations.

Drainage Operations Fund - This fund is used to account for the activities of the City's drainage operations.

Internal Service Funds - These funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis. 39 Drainage
Water Sewer Solid Waste Operations
Fund Fund Fund Fund
ASSETS
Current assets:

Cash and investments 29,828,745 $ 9,320,727 $ 2,714,683 $ 861,185 $ Accounts receivable, net 1,103,298 1,299,284 808,387 75,477 Prepaid items 34,523 6,581 38 -
Total current assets 31,162,552 10,430,606 3,523,108 936,662 Noncurrent assets:

Restricted cash and investments - 963,474 - -
Capital assets:

Non-depreciable 630,904 2,996,061 - 3,660,651
Depreciable, net 22,743,366 40,207,720 - 14,482,202
Total capital assets 23,374,270 43,203,781 - 18,142,853 Total noncurrent assets 23,374,270 44,167,255 - 18,142,853 Total assets 54,536,822 54,597,861 3,523,108 19,079,515

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 37,026 37,026 - -
Related to pensions 765,667 594,521 333,463 145,245
Total deferred outflow of resources 631,547 802,693 333,463 145,245

LIABILITIES
Current liabilities:

Accounts payable 1,328,980 646,459 1,730,492 5,031
Accrued payroll 30,910 34,492 8,571 4,798
Due to other funds - - - -
Interest payable 92,801 345,838 - -
Deposits payable - 1,563,356 - -
Unearned revenue 84,794 - 89,633 200
Compensated absences - due within one year 88,240 80,754 20,545 11,350 Long-term debt - due within one year 1,622,000 418,148 - - Total current liabilities 3,599,743 2,737,029 1,849,241 21,379 Noncurrent liabilities:

Advances from other funds - - - -
Aggregate net pension liability 2,686,101 3,253,753 1,341,877 620,348 Total OPEB liability 226,029 226,029 - -
Compensated absences - due in more than one year 85,590 48,397 23,331 9,267 Long term debt - due in more than one year 9,464,894 27,680,000 - - Total noncurrent liabilities 13,030,266 30,640,527 1,365,208 629,615 Total liabilities 16,630,009 33,377,556 3,214,449 650,994

DEFERRED INFLOWS OF RESOURCES
Related to service concession arrangement - - - -
Gain on refunding of debt 20,335 282,811 - -
Related to OPEB 11,204 11,204 - -
Related to pensions 204,311 207,401 71,392 46,667
Total deferred inflows of resources 501,416 235,850 71,392 46,667

NET POSITION
Net investment in capital assets 13,470,893 13,618,970 - 18,142,853 Restricted 963,474 - - -
Unrestricted (deficit) 25,002,763 6,767,992 570,730 384,246 Total net position $ 38,473,656 $ 21,350,436 $ 570,730 $ 18,527,099 Major Funds
City of Madera
Statement of Net Position
Proprietary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 40 Governmental
Activities
Non-major Internal
Funds Total Service Funds
ASSETS
Current assets:

Cash and investments 1,748,717 $ $ 44,474,057 $ 4,654,024 Accounts receivable, net 4,021,036 734,590 105,442
Prepaid items 8,737 49,879 37,828
Total current assets 2,492,044 48,544,972 4,797,294
Noncurrent assets:

Restricted cash and investments - 963,474 -
Capital assets:

Non-depreciable 3,671,445 10,959,061 -
Depreciable, net 17,900,144 95,333,432 3,407,390
Total capital assets 21,571,589 106,292,493 3,407,390
Total noncurrent assets 21,571,589 107,255,967 3,407,390 Total assets 24,063,633 155,800,939 8,204,684

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB - 74,052 -
Related to pensions 160,631 1,999,527 657,645
Total deferred outflow of resources 2,073,579 160,631 657,645

LIABILITIES
Current liabilities:

Accounts payable 23,889 3,734,851 197,167
Accrued payroll 13,320 92,091 29,933
Due to other funds 1,029,382 1,029,382 -
Interest payable 5,252 443,891 -
Deposits payable 1,577,531 14,175 -
Unearned revenue - 174,627 -
Compensated absences - due within one year 224,083 23,194 86,804 Long-term debt - due within one year 2,372,287 332,139 - Total current liabilities 1,441,351 9,648,743 313,904
Noncurrent liabilities:

Advances from other funds 61,201 61,201 -
Aggregate net pension liability 8,583,714 681,635 2,911,070 Total OPEB liability 452,058 - -
Compensated absences - due in more than one year 12,369 101,691 178,954 Long term debt - due in more than one year 505,081 37,649,975 - Total noncurrent liabilities 1,260,286 46,925,902 3,012,761 Total liabilities 56,574,645 2,701,637 3,326,665

DEFERRED INFLOWS OF RESOURCES
Related to service concession arrangement 16,670 16,670 - Gain on refunding of debt - 303,146 -
Related to OPEB - 22,408 -
Related to pensions 50,158 579,929 213,359
Total deferred inflows of resources 922,153 66,828 213,359

NET POSITION
Net investment in capital assets 65,967,085 20,734,369 3,407,390 Restricted 963,474 - -
Unrestricted (deficit) 33,447,161 721,430 1,914,915
Total net position $ 21,455,799 $ 100,377,720 $ 5,322,305 City of Madera
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 41 Drainage
Water Sewer Solid Waste Operations
Fund Fund Fund Fund
OPERATING REVENUES:

Charges for services 13,464,704 $ 10,567,703 $ 5,874,476 $ 866,007 $ Other 821 5,539 85,860 56
Total operating revenues 10,573,242 13,465,525 5,960,336 866,063 OPERATING EXPENSES:

Salaries and benefits 1,961,809 2,164,223 592,579 298,124 General and administrative 2,218,324 2,262,567 5,120,341 228,198 Supplies and miscellaneous 301,301 316,872 32,743 35,479 Parts and supplies 54,525 61,613 - 889
Utilities 1,723,819 745,868 12,456 35,666
Depreciation 884,171 2,471,765 - 344,997
Total operating expenses 8,022,908 7,143,949 5,758,119 943,353 OPERATING INCOME (LOSS) 2,550,334 6,321,576 202,217 (77,290) NONOPERATING REVENUES (EXPENSES):

Investment income 230,616 70,171 19,022 6,810
Property taxes - 97,248 - -
Capital grants - - 16,349 -
Gain (loss) on sale of capital assets - - - -
Interest expense (283,481) (1,194,068) - -
Other nonoperating expense - - - -
Total nonoperating revenues (expenses) (52,865) (1,026,649) 35,371 6,810

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 6,268,711 1,523,685 237,588 (70,480)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 73,515 784,905 - 204,270
Transfers in - 250,000 50,000 -
Transfers out (311,801) (159,240) (611,954) (67,451)
Total capital contributions and transfers (238,286) 875,665 (561,954) 136,819 Changes in net position 6,030,425 2,399,350 (324,366) 66,339 NET POSITION:

Beginning of year 32,443,231 18,951,086 895,096 18,460,760 End of year $ 38,473,656 $ 21,350,436 $ 570,730 $ 18,527,099 Major Funds
City of Madera
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 42 Governmental
Activities
Non-major Internal
Funds Total Service Funds
OPERATING REVENUES:

Charges for services $ 2,595,747 $ 33,368,637 $ 6,470,752 Other 21,382 113,658 47,063
Total operating revenues 2,617,129 33,482,295 6,517,815 OPERATING EXPENSES:

Salaries and benefits 448,350 5,465,085 2,029,438
General and administrative 1,963,054 11,792,484 738,119 Supplies and miscellaneous 180,954 867,349 202,342
Parts and supplies - 117,027 179,538
Utilities 32,167 2,549,976 172,587
Depreciation 724,363 4,425,296 589,095
Total operating expenses 3,348,888 25,217,217 3,911,119 OPERATING INCOME (LOSS) (731,759) 8,265,078 2,606,696
NONOPERATING REVENUES (EXPENSES):

Investment income 14,197 340,816 -
Property taxes 140,016 237,264 -
Capital grants 415,330 431,679 99,363
Gain (loss) on sale of capital assets 135,300 135,300 - Interest expense (32,247) (1,509,796) -
Other nonoperating expense - - -
Total nonoperating revenues (expenses) 672,596 (364,737) 99,363

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (59,163) 7,900,341 2,706,059

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 82,613 1,145,303 1,891
Transfers in 298,804 598,804 -
Transfers out (22,980) (1,173,426) (144,503)
Total capital contributions and transfers 358,437 570,681 (142,612) Changes in net position 299,274 8,471,022 2,563,447
NET POSITION:

Beginning of year 21,156,525 91,906,698 2,758,858
End of year $ 21,455,799 $ 100,377,720 $ 5,322,305
For the Year Ended June 30, 2021
City of Madera
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 43 Drainage
Water Sewer Solid Waste Operations
Fund Fund Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 13 $ 9 ,207,792 $ 5 ,879,946 $ 816 ,380,418 $ ,889 Cash payments to suppliers for goods and services (3,483,820) (3,364,598) (4,169,624) (302,711) Cash payments to employees for services (1,909,096) (2,105,601) (593,916) (293,125) Other operating revenues and expenses 821 5,539 56 85,860 Net cash provided by (used in) operating activities 4,415,286 7,815,697 702,738 221,109 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Property taxes 97 - - ,248 -
Due to other funds - - - -
Advances from other funds - - - -
Transfers from other funds - 250 50 ,000 - ,000
Transfers to other funds (311,801) (159,240) (611,954) (67,451) Net cash provided by (used in) noncapital financing activities (311,801) 188,008 (561,954) (67,451)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants - - 16 - ,349
Acquisition of capital assets (2,265,969) (4,383) - -
Proceeds from refinancing of debt 6 - - ,472,000 -
Principal payment of long-term debt (489,781) (7,817,283) - - Interest paid on debt (289,476) (1,247,112) - -
Net cash provided by (used in) capital and related financing activities (3,045,226) (2,596,778) 16,349 - CASH FLOWS FROM INVESTING ACTIVITIES:

Interest from investments 70,171 230,616 19,022 6,810
Net cash provided by investing activities 70 230,616 19 ,171 6 ,022 ,810 Net change in cash and cash equivalents 2 4,689,286 176 ,076,687 160 ,155 ,468 CASH AND CASH EQUIVALENTS:

Beginning of year 8,207,514 25,139,459 2,538,528 700,717 End of year $ 10,284,201 29,828,745 $ 2,714,683 $ 861,185 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ 6,321,576 $ 2,550,334 $ 202,217 $ (77,290) Adjustments to reconcile operating (loss) to net
cash provided by (used in) operating activities:

Depreciation 2 884,171 - ,471,765 344 ,997
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net (280,437) (687,757) (494,058) (49,118) Prepaid items (4,172) (3,076) - -
Deferred outflows - OPEB related (16,328) (16,328) - - Deferred outflows - pension related 19 18,058 5 ,537 ,693 2,678 Accounts payable 25 818,321 995 ,398 ,916 (2,479)
Accrued payroll (111) 929 (1,213) 360
Deposits payable 4,825 - - -
Unearned revenue - 18,700 - - Compensated absences 14 11,849 ,561 (8,431) 733 Aggregate net pension liability 32 30,005 9 ,462 ,460 4,449 Total OPEB liability 33 33,084 - ,084 -
Deferred inflows - OPEB related (2,130) (2,130) - - Deferred inflows - pension related (21,714) (23,493) (6,846) (3,221) Total adjustments 1,494,121 1,864,952 500,521 298,399
Net cash provided by (used in) operating activities $ 4 7,815,697 $ 702 ,415,286 $ 221 ,738 $ ,109 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Contributed property, plant and equipment $ - $ 784,905 $ - $ - Total noncash capital and related financing activities $ 784,905 - $ - $ - $ Major Funds
City of Madera
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 44 Governmental
Activities
Non-major Internal
Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 33 3,725,821 $ 6 ,010,866 $ ,369,025 Cash payments to suppliers for goods and services (2,501,012) (13,821,765) (1,231,367) Cash payments to employees for services (429,898) (5,331,636) (1,975,486) Other operating revenues and expenses 113 21,382 47 ,658 ,063 Net cash provided by (used in) operating activities 13,971,123 816,293 3,209,235 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Property taxes 237 140,016 - ,264
Due to other funds (861,980) (861,980) -
Advances from other funds (24,480) (24,480) -
Transfers from other funds 598 298,804 - ,804
Transfers to other funds (22,980) (1,173,426) (144,503) Net cash provided by (used in) noncapital financing activities (470,620) (1,223,818) (144,503)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants 431 415,330 99 ,679 ,363
Acquisition of capital assets (255,219) (2,525,571) (574,454) Proceeds from refinancing of debt 6 - - ,472,000
Principal payment of long-term debt (296,600) (8,603,664) - Interest paid on debt (32,741) (1,569,329) -
Net cash provided by (used in) capital and related financing activities (169,230) (5,794,885) (475,091) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest from investments 340,816 14,197 -
Net cash provided by investing activities 340 14,197 - ,816 Net change in cash and cash equivalents 7 190,640 2 ,293,236 ,589,641 CASH AND CASH EQUIVALENTS:

Beginning of year 1,558,077 2,064,383 38,144,295
End of year $ 1,748,717 $ 4,654,024 45,437,531 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ (731,759) $ 8,265,078 $ 2,606,696 Adjustments to reconcile operating (loss) to net
cash provided by (used in) operating activities:

Depreciation 4 724,363 589 ,425,296 ,095
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 1,129,399 (381,971) (101,727)
Prepaid items (7,049) (14,297) 5,510
Deferred outflows - OPEB related - (32,656) - Deferred outflows - pension related 3,872 19 49,838 ,607 Accounts payable (317,788) 55 1,519,368 ,709
Accrued payroll 5,635 5,600 (4,740)
Deposits payable 5 675 ,500 -
Unearned revenue 18 - - ,700 Compensated absences 7,168 30 25,880 ,083 Aggregate net pension liability 6,434 32 82,810 ,579
Total OPEB liability 66 - - ,168
Deferred inflows - OPEB related - (4,260) - Deferred inflows - pension related (4,657) (59,931) (23,577) Total adjustments 5,706,045 1,548,052 602,539
Net cash provided by (used in) operating activities $ 13 816,293 $ 3 ,971,123 $ ,209,235 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Contributed property, plant and equipment $ 82,613 $ 867,518 $ 1,891 Total noncash capital and related financing activities $ 867,518 82,613 $ 1,891 $ Statement of Cash Flows (Continued)
City of Madera
Proprietary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 45 This page intentionally left blank.
46 Fiduciary Funds Financial Statements
Custodial Funds - These funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private purpose trust funds. This includes the San Mateo General Deposit Custodial Fund and Community Facilities Districts Custodial Fund.

RDA Successor Agency Private Purpose Trust Fund - This fund is used to account for monies received from the Madera County Auditor Controller for the repayment of the enforceable obligations of the former Madera Community Development Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Payment Obligation Schedule (ROPS).
47 This page intentionally left blank.
48 RDA
Successor Agency
Custodial Private Purpose
Funds Trust Fund
ASSETS
Cash and investments $ 1,893,097 $ 6,238,586
Accounts receivable, net 1,936 6,137
Prepaid items 875 421
Restricted cash and investments with fiscal agent 47,031 1 Land held for resale - 278,207
Capital asset, not being depreciated - 16,702
Capital asset, being depreciated, net - 1,563,224
Total assets 1,942,939 8,103,278

LIABILITIES
Accounts payable 17,930 140
Accrued liabilities - 293
Interest payable - 496,600
Due to City - 410,411
Deposits payable 1,539,738 -
Long-term debt - due within one year - 1,390,000
Long-term debt - due in more than one year 35,472,970 - Total liabilities 1,557,668 37,770,414

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 385,271 - Held in trust for dissolution of RDA (29,667,136) -
Total net position (deficit) $ 385,271 $ (29,667,136)
City of Madera
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements. 49 RDA
Successor Agency
Custodial Private Purpose
Funds Trust Fund
ADDITIONS:

Special assessments for other governments $ 178,165 $ - Investment income 1,021 31,777
RDA property tax trust fund distribution - 3,375,855
Other payments received - 4,186
Total additions 179,186 3,411,818
DEDUCTIONS:

Administration 7,865 -
Project payments - 319,145
Payments on conduit bonds - principal 79,232 -
Payments on conduit bonds - interest 87,352 -
Depreciation - 65,849
Interest expense - 1,033,070
Total deductions 174,449 1,418,064
Change in net position 4,737 1,993,754
NET POSITION (DEFICIT):

Beginning of year 380,534 (31,660,890)
End of period $ 385,271 $ (29,667,136)
City of Madera
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements. 50 51

NOTES TO THE BASIC FINANCIAL STATEMENTS
52 This page intentionally left blank.

City of Madera
Index of Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
53 Note 1 – Summary of Significant Accounting Policies ............................................................................................. 57 A. Financial Reporting Entity ........................................................................................................................ 57 B. Basis of Presentation, Accounting and Measurement Focus ..................................................................... 58 C. Deferred Outflows and Inflows of Resources ........................................................................................... 62 D. Cash, Cash Equivalents and Investments .................................................................................................. 62 E. Restricted Assets ....................................................................................................................................... 63 F. Receivables ................................................................................................................................................ 63 G. Interfund Transactions ............................................................................................................................... 64 H. Inventory ................................................................................................................................................... 64 I. Prepaid Items ............................................................................................................................................. 64 J. Land Held for Resale ................................................................................................................................. 64 K. Capital Assets ............................................................................................................................................ 64 L. Long-Term Debt ........................................................................................................................................ 65 M. Compensated Absences ............................................................................................................................. 65 N. Pension Plans ............................................................................................................................................. 66 O. Other Postemployment Benefits (OPEB) .................................................................................................. 66 P. Fund Balances ........................................................................................................................................... 67 Q. Net Position ............................................................................................................................................... 68 R. Property Taxes ........................................................................................................................................... 68 S. Use of Accounting Estimates .................................................................................................................... 68 T. Implementation of New GASB Pronouncements for the Year Ended June 30, 2021 ............................... 68 U. Upcoming Government Accounting Standards Implementations ............................................................. 69 Note 2 – Cash and Investments .................................................................................................................................. 71 A. Demand Deposits ....................................................................................................................................... 72 B. Investments Authorized by the California Government
Code and the City’s Investment Policy ............................................................................................... 72 C. Investments Authorized by Debt Agreements ........................................................................................... 73 D. Fair Value Measurement ........................................................................................................................... 73 E. Risk Disclosure .......................................................................................................................................... 74 F. Investment in State Investment Pool ......................................................................................................... 76 Note 3 –Notes Receivables .......................................................................................................................................... 76 A. Summary ................................................................................................................................................... 76 B. Governmental Activities ............................................................................................................................ 77 Note 4 – Interfund Receivables, Payables, and Transfers ....................................................................................... 78 A. Due To / From Other Funds ...................................................................................................................... 78 B. Transfers .................................................................................................................................................... 78 C. Long-Term Advances ................................................................................................................................ 79 Note 5 – Due from Fiduciary Funds .......................................................................................................................... 80 Note 6 – Capital Assets ............................................................................................................................................... 80 A. Governmental Activities ............................................................................................................................ 80 B. Business-Type Activities ........................................................................................................................... 81 C. Fiduciary Fund Financial Statements ........................................................................................................ 82 City of Madera
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
54 Note 7 – Long-Term Liabilities .................................................................................................................................. 82 A. Governmental Activities ............................................................................................................................ 82 B. Business-Type Activities ........................................................................................................................... 85 C. Fiduciary Fund Financial Statements ........................................................................................................ 88 Note 8 – Special Assessment Debt with No City Commitment ............................................................................... 90 Note 9 – Compensated Absences ................................................................................................................................ 90 A. Governmental Activities ............................................................................................................................ 90 B. Business-Type Activities ........................................................................................................................... 91 Note 10 – Risk Management ....................................................................................................................................... 91 Note 11 – Pension Plans .............................................................................................................................................. 93 A. Summary ................................................................................................................................................... 93 B. City Miscellaneous Plan ............................................................................................................................ 94 C. City Safety Plan ....................................................................................................................................... 100 Note 12 – Other Postemployment Benefits ............................................................................................................. 106 A. Summary ................................................................................................................................................. 106 B. General Information about OPEB ........................................................................................................... 106 C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ...................................................................................................... 107 Note 13 – Deferred Compensation Plan .................................................................................................................. 109 A. City .......................................................................................................................................................... 109 Note 14 – Service Concession Agreement ............................................................................................................... 110 Note 15 – Other Required Disclosures .................................................................................................................... 110 A. Deficit Fund Balances/Net Position ........................................................................................................ 110 B. Expenditures Exceeding Appropriations ................................................................................................. 110 Note 16 – Fund Balance Classification .................................................................................................................... 111 Note 17 – Commitments and Contingencies ........................................................................................................... 111 A. Litigation ................................................................................................................................................. 111 B. Contingent Liabilities .............................................................................................................................. 112 C. Federal and State Grants .......................................................................................................................... 112 D. Contractual Commitments ....................................................................................................................... 112 E. Encumbrances .......................................................................................................................................... 113 City of Madera
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
55 Note 18 – Prior Period Adjustment ......................................................................................................................... 113 A. Fiduciary Fund Financial Statements ...................................................................................................... 113 Note 19 – Subsequent Events ................................................................................................................................... 113 A. American Rescue Plan Act ...................................................................................................................... 113 56 This page intentionally left blank.

City of Madera
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
57 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Madera, California (City) have been prepared in conformity with Generally Accepted Accounting Principles of the United States of America (U.S. GAAP) as applied to governmental agencies.

The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting standards in the United States. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Madera, California (the “City”) was incorporated in 1907 under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services:
public protection, , health and social services, public ways and facilities, community development (planning, building and zoning), culture-recreation, public utilities (water, sewer, solid waste, and drainage operations), airport services, local transportation, golf course, and general administrative services.

Blended Component Units
The financial reporting entity consists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Blended component units, although legally separate entities, are, in substance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.

Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

Madera Public Financing Authority (Financing Authority) The Madera Public Financing Authority (Financing Authority) was created in 1989. The Financing Authority is a joint exercise of joint powers. The City Council serves as directors of the Financing Authority. The purpose of the Financing Authority is to act as a financing/lending type of entity only. No separate annual financial statements are prepared for the Financing Authority. Since the City Council previously served as the government board for this component unit, the City’s component unit was considered to be a blended component unit. Blended component units, although legally separate entities, are in substance, part of the City’s operations and financial information was reported with the primary government.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
58 Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued)
Discretely Presented Component Units
A discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the City.

Housing Authority of the City of Madera (Housing Authority) The Housing Authority of the City of Madera (Housing Authority) is a governmental entity authorized in accordance with state law to engage in the development, acquisition, leasing, and administration of low-rent housing programs. The Housing Authority is governed by a Board of Commissioners, which is comprised of members of the City Council. Management of the Housing Authority is appointed and held accountable to the Governing Board. During the fiscal year ending June 30, 2021, the Housing Authority elected to change the organization’s year-end reporting date from June 30th to September 30th. The first financial reporting period under the new year-end reporting date consisted of a 15 month accounting period from July 1, 2020 through September 30, 2021. The Housing Authority’s September 30 fiscal year-end audited financial statements are included in the City’s basic financial statements as a discretely presented component unit. Complete financial statements for the Housing Authority may be obtained from the administrative offices located at 205 North G St, Madera, CA 93637.

The Housing Authority and the City have different fiscal years, which can result in timing differences in transactions between the Housing Authority and the City as noted in the basic financial statements. The audited financial statements of the Housing Authority were not available and therefore have not been included in the City’s financial statements.

B. Basis of Presentation, Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources resulting from non-exchange transactions are recognized in accordance with the requirements of U.S. GAAP.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
59 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Government-Wide Financial Statements (Continued)
Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Program revenues for the City are classified in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfers in/out
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for all revenues except grants, which use a six-month availability period.

Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period.

Other revenue items are considered to be measurable and available when cash is received by the government.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
60 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.

Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions have been recognized as revenues when all applicable eligibility requirements have been met.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.

The City reports the following major governmental funds:

General Fund – This is the primary operating fund of the City. It accounts for all the general revenues of the City not specifically levied or collected for by other City funds and for expenditures related to the rendering of general services by the City.

General Development Impact Fee Fund – This fund accounts for and reports the proceeds of the AB1600 development impact fee monies that are restricted or committed to expenditures for the intended purposes.

Solar Energy Lease Capital Projects Fund – This fund accounts for the construction of the Solar Energy Lease Purchase projects. These projects are funded by the Solar Energy Lease Purchase debt obligations.

Discretely Presented Component Unit Financial Statements The activities of the Authority closely resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. The Authority provides services on a continuous basis and its activities are substantially financed by revenues derived from user charges and contributions from the member agencies. The Authority utilizes the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include funds which provide services directly to other City funds. These areas of service include fleet maintenance, facilities maintenance, and technology.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
61 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The City reports the following major proprietary funds:

Water Fund – This fund is used to account for the provision of water services to the residential, commercial and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

Sewer Fund – This fund is used to account for the provision of sewer treatment to residential, commercial and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

Solid Waste Fund – This fund is used to account for City’s activities related to solid waste removal and street cleaning activities.

Drainage Operations Fund – This fund is used to account for the City’s activities related to drainage operations.

Local Transit Fund – This fund is used to account for the activities of the government's public transit operations.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.

Fiduciary fund types are accounted for according to the nature of the fund. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Such funds include and General Deposits Fund. They are also used to account for various assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts. Such funds include Community Facilities Districts.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
62 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements (Continued)
The City’s private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities and activities of the Successor Agency to the Redevelopment Agency (Successor Agency) for the City of Madera. Its results of operations are presented on the Statement of Changes of Fiduciary Net Position.

Successor Agency of the Redevelopment Agency for the City of Madera The Redevelopment Obligation Retirement Fund was created to serve as a custodian for the assets and to wind down the affairs of the RDA on February 1, 2012, pursuant to Assembly Bill x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency (RDA). The Successor Agency is a separate public entity from the City, subject to the direction of an oversight board. The City Council serves as the governing board of the Successor Agency. In general, the Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, the Successor Agency will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former RDA until all enforceable obligations of the former RDA have been paid in full and all assets have been liquidated. Based upon the nature of the Successor Agency’s custodial role, the Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund. On March 6, 2015, the California Department of Finance (Finance) approved the City’s revised Long-Range Property Management Plan (LRPMP), with the assets deemed for governmental use and future development.

C. Deferred Outflows and Inflows of Resources
The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

Deferred Inflows of Resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

Investments are reported in the accompanying financial statements at fair value, except for certain investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year, and may result in negative investment income in the accompanying financial statements. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
63 Note 1 – Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents and Investments (Continued)
Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for investment income associated with funds not legally required to receive pooled investment income which has been assigned to and recorded as revenue of the general fund, as provided by California Government Code Section 53647.

For purposes of the statement of cash flows, amounts reported as cash and cash equivalents, include amounts on deposit in the City pool and any short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

Certain disclosure requirements, if applicable, for deposits and investment risks in the following areas:
 Interest rate risk
 Credit risk
- Overall
- Custodial credit risk
- Concentration of credit risk
 Foreign currency risk
U.S. GAAP establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

E. Restricted Assets
Amounts reported as restricted assets have been restricted by bond indentures or are to be used for specified purposes based on contract provisions, such as bonded debt service.

F. Receivables
Customer or trade receivables are reported as “accounts receivable” and are shown net of an allowance for uncollectible accounts based on historical and management estimates.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
64 Note 1 – Summary of Significant Accounting Policies (Continued) F. Receivables (Continued)
Noncurrent portions of long-term receivables (e.g., “notes receivable”) due to governmental fund types are reported in their respective balance sheets despite their spending measurement focus. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables.

Noncurrent portions of long-term notes receivable are offset by restricted fund balance in the special revenue funds.

G. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and businesstype activities are reported in the Governmental-Wide Financial Statements as “internal balances.” H. Inventory
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of expendable supplies and vehicle repair parts. The cost of such inventories is recorded as expenditure/expenses when consumed rather than when purchased. Inventory reported in governmental funds is offset with nonspendable fund balance to show that inventories do not constitute available spendable resources, even though they are a component of fund balance.

I. Prepaid Items
Prepaid items are reported in the governmental funds under the consumption method and are reported as a nonspendable component of fund balance to indicate that they are not spendable for appropriation and are not expendable financial resources.

J. Land Held for Resale
Land held for resale represents land, structures, and related improvements that were acquired for resale as part of the City’s redevelopment and grant activities. Land held for resale is accounted for is recorded at lower of cost or net realizable value in accordance with accounting principles generally accepted in the United States of America.

Land held for resale, which is not available for current expenditure, is reported in the governmental funds balance sheet as restricted fund balance when proceeds from the sale must be used for restricted purposes or as nonspendable fund balance when such proceeds are not restricted.

K. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are valued at the fair value of the assets on the date on which they were contributed. Donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value.

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. The City utilizes a capitalization threshold of $5,000 - $25,000 depending on asset type.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
65 Note 1 – Summary of Significant Accounting Policies (Continued) K. Capital Assets (Continued)
Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows:

Asset Type Years
Buildings 25-35
Improvements 5-50
Equipment 4-15
Infrastructure 10-50
For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

L. Long-Term Debt
Government-Wide Financial Statements and Proprietary Fund Financial Statements Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts are deferred and amortized over the life of the bonds using straight line method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed when incurred. Gains or losses on bond refunding are reported as either deferred outflows of resources or deferred inflows of resources and amortized over the term of the related debt.

Governmental Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

M. Compensated Absences
The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment upon separation from government service. The liability for such leave is reported as incurred in the government-wide and proprietary fund financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
66 Note 1 – Summary of Significant Accounting Policies (Continued) M. Compensated Absences (Continued)
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as expenses when earned.

Fund Financial Statements
For governmental funds, compensated absences are recorded as expenditures in the year paid. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a longterm liability of the fund.

N. Pension Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 11). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City's governmental activities while the pension liability for Business-type activities is liquidated from the respective Enterprise Funds.

The following timeframes are used for pension reporting:

Valuation date June 30, 2019
Measurement date June 30, 2020
Measurement period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

O. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB plan, the assets of which are held in an irrevocable trust, and additions to/deductions from the OPEB plan’s fiduciary net position have been determined by an independent actuary (Note 12). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The Enterprise Funds are used to liquidate the OPEB liability.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
67 Note 1 – Summary of Significant Accounting Policies (Continued) O. Other Postemployment Benefits (OPEB) (Continued)
Generally accepted accounting principles require that the reported results must pertain to liability and fiduciary net position information within certain defined timeframes. For this report, the following timeframes are used:

Valuation date June 30, 2020
Measurement date June 30, 2020
Measurement period July 1, 2019 to June 30, 2020
P. Fund Balances
As prescribed by U.S. GAAP, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2021, fund balances for governmental funds are made up of the following:
 Nonspendable Fund Balance – includes amounts that are (a) not in a spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: deposits and prepaid items.  Restricted Fund Balance – includes amounts that are restricted for specific purposes stipulated by external resources providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted with the consent of resource providers.  Committed Fund Balance – includes amounts that have been limited to specific purposes or through adoption of a resolution or an ordinance by the City Council, the highest level of decision-making authority of the City, and resources that have been specifically committed for use in satisfying contractual obligations, as in agreements with third-parties. The City has determined that both a resolution and an ordinance are equally binding. These commitments may be changed or lifted, but only by the same formal action that was used to impose the constraint originally. City Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be subsequently determined.  Assigned Fund Balance – includes amounts that are intended to be used by the City for specific purposes.

Intent is expressed by (a) the City Council or (b) a body or official to which the City Council has delegated the authority to assign amounts to be used for a specific purpose. This policy delegates to the Finance Director the authority to assign unassigned fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.
 Unassigned Fund Balance – includes amounts within the General Fund, the residual resources, either positive or negative in excess of what can be properly classified in one of the other four fund balance categories. Unassigned amounts are technically available for any purpose. Other governmental funds may only report a negative unassigned balance that was created after classification of fund balance in the nonspendable, restricted or committed categories.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
68 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Net Position
The financial statements utilize a net position presentation. Net position is classified as follows:
 Net Investment in Capital Assets – This category of net position consists of capital assets, net of accumulated depreciation and reduced by any debt outstanding and any deferred outflows/inflows of resources related to such borrowings that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of net investment in capital assets.

Rather, that portion of the debt is offset by unspent proceeds.  Restricted Net Position – This category presents restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Those assets are restricted due to external restrictions imposed by creditors (such as through bond covenants), grantors or laws and regulations of other governments and restrictions imposed through constitutional provisions or enabling legislation.  Unrestricted – This category represents net position of the City that is not restricted for any project or other purpose.

When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first, then unrestricted resources that are needed.

R. Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.

Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The County of Madera, bills and collects the property taxes and remits them to the City at various times throughout the year. Property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are due in two installments. The first installment is due on November 1, and is payable through December 10 without penalty. The second installment is due February 1, and is payable through April 10 without penalty.

S. Use of Accounting Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions, in some cases when applicable, that affect the amounts in the financial statements and the accompanying notes. Actual results could differ from the estimates.

T. Implementation of New GASB Pronouncements for the Year Ended June 30, 2021 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2021. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
69 Note 1 – Summary of Significant Accounting Policies (Continued) T. Implementation of New GASB Pronouncements for the Year Ended June 30, 2021 (Continued) GASB Statement No. 84 - In January 2017, GASB issued Statement No. 84, Fiduciary Activities (GASB Statement No. 84), to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The statement establishes criteria for identifying fiduciary activities of all state and local governments. It also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. As a result of the implementation, the City converted the former agency funds, which previously reported assets and liabilities only, to custodial funds and reported a restatement of its net position in the amount of $380,534.

GASB Statement No. 90 - In August 2018, GASB issued Statement No. 90, Majority Equity Interests – an Amendment of GASB Statements No. 14 and No. 61 (GASB Statement No. 90), to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. This statement requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Application of this statement did not have a material financial effect on the City’s financial statements for the fiscal year ending June 30, 2021.

GASB Statement No. 98 - In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report, to establish the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Application of this statement did not have a material financial effect on the City’s financial statements for the fiscal year ending June 30, 2021.

U. Upcoming Government Accounting Standards Implementations GASB Statement No. 87
In June 2017, GASB issued Statement No. 87, Leases. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 89
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
70 Note 1 – Summary of Significant Accounting Policies (Continued) U. Upcoming Government Accounting Standards Implementations (Continued) GASB Statement No. 91
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.

Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 92
In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 93
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

GASB Statement No. 94
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 96
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
71 Note 1 – Summary of Significant Accounting Policies (Continued) U. Upcoming Government Accounting Standards Implementations (Continued) GASB Statement No. 97
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Application of this statement is effective for the City’s fiscal year ending June 30, 2022.

Note 2 – Cash and Investments
Cash and investments are presented in the accompanying financial statements at June 30, 2021 as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments $ 76,807,229 $ 44,474,057 $ 121,281,286 $ 8,131,683 $ 129,412,969 Cash and investments with fiscal agent 6,262,355 963,474 7,225,829 47,032 7,272,861 Total cash and investments $ 83,069,584 $ 45,437,531 $ 128,507,115 $ 8,178,715 $ 136,685,830 Government-Wide Statement of Net Position
Cash and investments at June 30, 2021, consisted of the following:

Cash:

Cash on hand $ 6,530
Deposits with financial institution 10,636,041
Total cash 10,642,571
Investments:

Investments 118,770,398
Investments held by bond trustee 7,272,861
Total investments 126,043,259
Total cash and investments 136,685,830
As part of the City's investment guidelines, the City continually seeks ways to increase investment income while not risking investment principal. One way the City accomplishes this is by “sweeping”, on a nightly basis, any excess cash held in its non-interest-bearing checking account to an interest-bearing money market account with the same bank.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
72 Note 2 – Cash and Investments (Continued)
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $10,636,041 at June 30, 2021. Bank balances were $11,948,997 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.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City’s 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 (“FDIC”). The City, however, has not waived the collateralization requirements.

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

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Types Maturity of Portfolio One Issuer* Local Agency Bonds, Notes, Warrants 5 years None None
Registered State Bonds, Notes, Warrants 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% of base None
Medium-Term Corporate 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 N/A None None
Joint Powers Authority Pools N/A None None
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
73 Note 2 – Cash and Investments (Continued)
C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by fiscal agents 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 fiscal agents. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Types Maturity Allowed 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
Investment Contracts 30 years None None
D. Fair Value Measurement
As of June 30, 2021, the City’s investments had the following recurring fair value measurements:

Investments measured by fair value level: June 30, 2021 Level 2 Negotiable Certificates of Deposit $ 13,470,208 $ 13,470,208 U.S. Government Securities:

Federal Farm Credit Bank 6,933,800 6,933,800
Federal Home Loan Banks 3,190,668 3,190,668
Federal Home Loan Mortgage Corporation 1,990,180 1,990,180 Federal National Mortgage Association 2,969,860 2,969,860 U.S. Corporate Bonds 12,027,491 12,027,491
Total investments by fair value level 40,582,207 $ 40,582,207 Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 66,491,455
Money market mutual funds 13,246,597
Certificates of deposit 5,723,000
Total investments not subject to the fair value hierarchy 85,461,052 Total investments $ 126,043,259
Debt and equity securities classified in Level 2 are valued using the following approaches:
• U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active;
• Medium term notes: quoted prices for similar securities in active markets; and • Asset-backed securities: recent appraisals of the asset value.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
74 Note 2 – Cash and Investments (Continued)
E. Risk Disclosure
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment.

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

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity. For purposes of the schedule shown on the next page, any callable securities are assumed to be held to maturity.

Investment Type Total 1 year or less 1 - 2 Years Years 3 - 4 Years 5+ Years Local Agency Investment Fund $ 66,491,455 $ 66,491,455 $ - $ - $ - $ - Money market mutual funds 5,973,736 5,973,736 - - - -
Certificates of deposit 5,723,000 1,741,000 2,488,000 996,000 249,000 249,000 Negotiable Certificates of Deposit 13,470,208 2,328,191 1,971,529 1,971,529 1,992,468 5,206,490 U.S. Government Securities:

Federal Farm Credit Bank 6,933,800 1,001,010 - 996,780 4,936,010 Federal Home Loan Banks 3,190,668 - 998,640 2,192,028
Federal Home Loan Mortgage Corporation 1,990,180 - 1,000,090 990,090 Federal National Mortgage Association 2,969,860 - 992,380 1,977,480 U.S. Corporate Bonds 12,027,491 1,506,455 4,419,086 2,134,730 2,976,140 991,080 Held by bond trustee:

Money market mutual funds 7,272,861 7,272,861 - - - -
Total investments $ 126,043,259 $ 85,313,699 $ 9,879,625 $ 7,100,989 $ 9,398,796 $ 14,350,150 Investment Maturities
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.

However, some issuers do not seek a credit rating. For instance, the California Local Agency Investment Fund (LAIF) has not sought or received a credit rating. In these cases, the purchaser is solely responsible for performing their own due diligence before purchasing an investment or participating in an external investment pool.

Certificates of deposit of $250,000 or less are fully insured by the Federal Deposit Insurance Corporation (FDIC), and therefore, do not seek a credit rating.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
75 Note 2 – Cash and Investments (Continued)
E. Risk Disclosure (Continued)
Disclosures Relating to Credit Risk (Continued)
Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Minimum Ratings
Legal at Year-End
Investment Type Total Rating AA or AAA Not Rated
Local Agency Investment Fund $ 66,491,455 N/A $ 66,491,455 - $ Money market mutual funds 5,973,736 A-1 5,973,736 -
Certificates of deposit 5,723,000 AA+ 5,723,000 -
Negotiable Certificates of Deposit 13,470,208 AA+ 13,470,208 - U.S. Government Securities:

Federal Farm Credit Bank 6,933,800 AA 6,933,800 -
Federal Home Loan Banks 3,190,668 AA 3,190,668 -
Federal Home Loan Mortgage Corporation 1,990,180 AA 1,990,180 - Federal National Mortgage Association 2,969,860 AA- 2,969,860 - U.S. Corporate Bonds 12,027,491 AA 12,027,491 -
Held by bond trustee:

Money market mutual funds 7,272,861 AA+ 7,272,861 -
Total investments $ 126,043,259 $ 40,582,207 $ 85,461,052 Disclosure Relating to 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 in the Government Code. GASB Statement No. 40 requires disclosure by amount and issuer, of investments in any one issuer that represent 5% or more of total investments. At June 30, 2021, there we no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represents 5% or more of the City's total investments.

Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2021, the City’s deposits (bank balances) were collateralized under California Law.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
76 Note 2 – Cash and Investments (Continued)
F. Investment in State Investment Pool
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2021 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $66,491,455 invested in LAIF, which had invested 1.10% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2021, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2021.

Note 3 – Notes Receivables
A. Summary
At June 30, 2021, notes receivable consisted of the following:

Allowance for Financial Interest
Notes Receivable Doubtful Accounts Statement Receivable, net Balance Balance Balance Balance
June 30, 2021 June 30, 2021 June 30, 2021 June 30, 2021 City:

Residential Rehab Special Revenue Fund:

Madera Pacific Associates Loan $ 2,962,234 $ - $ 2,962,234 $ - 100 Stadium Rd., LP Loan 5,034,343 - 5,034,343 -
Forgivable Loans 7,490,072 (7,490,072) - -
Total Residential Rehab Special Revenue Fund 15,486,649 (7,490,072) 7,996,577 - Low and Moderate Income Housing Fund 7,000 - 7,000 -
Total City $ 15,493,649 $ (7,490,072) $ 8,003,577 $ -
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
77 Note 3 – Notes Receivables (Continued)
B. Governmental Activities
Residential Rehab Special Revenue Fund
The City was awarded a $3 million-dollar federal grant from the HOME Investment Program (HOME) administered through the State of California. The proceeds of this grant were used to provide a $3 million loan to Madera Pacific Associates (MPA) for multi-family rental housing projects serving low and very low-income individuals through subordinate loans with terms up to 55 years. MPA is required to repay the loan through the net cash flow payments it receives from project operations. The loan balance at June 30, 2021 is $2,962,234, which is recorded as a note receivable in the Residential Rehab special revenue fund.

The City was awarded a $5 million-dollar federal grant from the HOME Investment Program (HOME) administered through the State of California. The proceeds of this grant were used to provide a $5 million loan to 100 Stadium Rd., L.P. for multi-family rental housing projects serving low and very low-income individuals through subordinate loans with terms up to 55 years. 100 Stadium Rd., L.P. is required to repay the loan through the net cash flow payments it receives from project operations. The loan balance at June 30, 2021 is $5,034,343, which is recorded as a note receivable in the Residential Rehab special revenue fund.

Forgivable Loans
The City administers the first time homebuyer, housing rehabilitation, and small business loan programs funded with various grants (i.e. CDBG, HOME, CalHome, NSP, etc.). Under these programs, individuals with incomes below certain levels are eligible to receive low interest loans. These loans are secured by deeds of trust on the properties. Deferred payment loans receivable under these forgivable loans are not required to be paid back unless the participating homeowner sells, transfers title to the property, or discontinues residence in the dwelling at which time the full amount of the deferred loan is due. These deferred payment loans are “nonperforming loans” and are not recorded as loans receivable in the financial statements.

Forgivable Loans (Continued)
Loans and related items as of June 30, 2021 are summarized as follows:

Outstanding
Loan Balance
Loan Type June 30, 2021 Due
First-time homebuyer $ 5,431,572 30 years
Housing rehabilitation 1,506,296 30 years
Small business 552,204 10 years
Total $ 7,490,072
Low and Moderate Income Housing Asset Special Revenue Fund The Low and Moderate Income Housing Asset special revenue fund reports $7,000 of notes receivable. These were loans funded from the former Redevelopment Agency to developers for construction of affordable housing or rehabilitation within the boundaries of the Redevelopment Project Area. These low interest-bearing loans are secured by deeds of trust. Maturities vary according to terms and disposition of property.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
78 Note 4 – Interfund Receivables, Payables, and Transfers A. Due To / From Other Funds
Amounts due to and due from other funds at June 30, 2021, were as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Solar Energy Lease Capital Projects Fund $ 123,385 Overdrawn Cash General Fund Federal Aid Urban Special Revenue Fund 1,215,767 Overdrawn Cash General Fund Street Construction Special Revenue Fund 259,544 Overdrawn Cash General Fund Intermodal Building Special Revenue Fund 26,824 Overdrawn Cash General Fund Local Transit Enterprise Fund 529,788 Overdrawn Cash General Fund Golf Course Enterprise Fund 499,594 Overdrawn Cash Total $ 2,654,902
B. Transfers
Interfund transfers during the year ended June 30, 2021, consisted of the following:

Transfers In Transfers Out Amount Purpose
General Fund Special Gas Tax Special Revenue Fund $ 877,822 Capital projects General Fund Measure "T" Sales Tax Special Revenue Fund 863,933 Capital projects General Fund Parking District Operations Special Revenue Fund Administrative cost 7,709 General Fund Street Construction Special Revenue Fund 512,000 Capital projects General Fund Community Facilities District Special Revenue Fund 310,247 Administrative cost General Fund General Development Impact Fee Special Revenue Fund 15,000 Administrative cost General Fund General Development Impact Fee Special Revenue Fund 125,020 Debt service General Fund Water Enterprise Fund 60,000 Engineering costs General Fund Sewer Enterprise Fund 593,857 Engineering costs General Fund Drainage Operations Enterprise Fund 45,000 Engineering costs Subtotal 3,410,588
Streets and Roads Special Revenue Fund General Fund 38,119 Capital projects Streets and Roads Special Revenue Fund Special Gas Tax Special Revenue Fund 954,076 Capital projects Streets and Roads Special Revenue Fund Measure "T" Sales Tax Special Revenue Fund 11,305 Capital projects Subtotal 1,003,500
Solar Energy Lease Capital Projects Fund General Fund 104,506 Debt service Solar Energy Lease Capital Projects Fund Intermodal Facility Special Revenue Fund 11,449 Debt service Solar Energy Lease Capital Projects Fund Parking District Operations Special Revenue Fund 1,545 Debt service Solar Energy Lease Capital Projects Fund Landscape Assessment Special Revenue Fund 2,546 Debt service Solar Energy Lease Capital Projects Fund Water Enterprise Fund 210,166 Debt service Solar Energy Lease Capital Projects Fund Sewer Enterprise Fund 114,275 Debt service Solar Energy Lease Capital Projects Fund Solid Waste Disposal Enterprise Fund 2,807 Debt service Solar Energy Lease Capital Projects Fund Drainage Operations Enterprise Fund 14,207 Debt service Solar Energy Lease Capital Projects Fund Airport Enterprise Fund 15,051 Debt service Solar Energy Lease Capital Projects Fund Internal Service Funds 61,631 Debt service Subtotal 538,183
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
79 Note 4 – Interfund Receivables, Payables, and Transfers (Continued) B. Transfers (Continued)
Transfers In Transfers Out Amount Purpose
General Fund Intermodal Facility Special Revenue Fund Fund insurance reserve 244 General Fund Parking District Operations Special Revenue Fund Fund insurance reserve 305 General Fund Water Enterprise Fund Fund insurance reserve 41,635 General Fund Sewer Enterprise Fund Fund insurance reserve 44,965 General Fund Solid Waste Disposal Enterprise Fund Fund insurance reserve 15,290 General Fund Drainage Operations Enterprise Fund Fund insurance reserve 8,244 General Fund Local Transit Enterprise Fund Fund insurance reserve 4,522 General Fund Airport Enterprise Fund Fund insurance reserve 3,407 General Fund Internal Service Funds Fund insurance reserve 32,872 Subtotal 151,484
Sewer EnterpriseFund General Development Impact Fee Special Revenue Fund 250,000 Debt service Solid Waste Enterprise Fund Internal Service Funds 50,000 Capital projects Golf Course Enterprise Fund General Fund 298,804 Capital projects Total $ 5,702,559
C. Long-Term Advances
At June 30, 2021, the balances of long-term advances were as follows:

Advances To Advances From Amount
General Fund Golf Course Enterprise Fund $ 61,201
General Fund Advance to the Golf Course Fund
On January 1, 2014, the General Fund entered into loan agreement with Golf Course Fund in the amount of $1,710,000. The loan is to be repaid over 20 years at 0.0% interest rate per year. This loan is for funding facility construction. At June 30, 2021, the outstanding balance of the agreement was $61,201.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
80 Note 4 – Interfund Receivables, Payables, and Transfers (Continued) C. Long-Term Advances (Continued)
The annual requirements to amortize the loan are as follows:

Year Ending
June 30, Principal Interest Total
2022 24,480 $ - $ 24,480 $
2023 24,480 - 24,480
2024 12,241 - 12,241
Total $ - 61,201 $ 61,201 $
Note 5 – Due from Fiduciary Funds
Due from fiduciary funds as of June 30, 2021, was as follows:

Receivable Fund Payable Fund Amount Purpose
General Fund Purpose Trust Fund $ 410,411 Reimbursement Total $ 410,411
Note 6 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2021, is as follows:

Balance Balance
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated
Land $ 12,399,951 $ 275,000 $ (470,000) 205,000 $ 12,409,951 Construction in progress 16,590,872 18,185,062 (5,557,910) - 29,218,024 Total capital assets, not being depreciated 28,990,823 18,460,062 (470,000) (5,352,910) 41,627,975 Capital assets, being depreciated
Building and improvements 24,965,790 - - 24,965,790 -
Infrastructure 300,782,173 1,365,814 (9,735) 5,105,910 307,244,162 Equipment 17,135,262 654,500 (1,637,154) 247,000 16,399,608 Total capital assets, being depreciated 342,883,225 2,020,314 (1,646,889) 5,352,910 348,609,560 Accumulated depreciation:

Building and improvements (8,948,457) (563,800) - (9,512,257) - Infrastructure (167,703,380) (7,142,635) 9,735 (174,836,280) - Equipment (9,527,188) (1,016,657) 1,629,356 (8,914,489) - Total accumulated depreciation (186,179,025) (8,723,092) 1,639,091 (193,263,026) - Total capital assets, being depreciated, net 156,704,200 (6,702,778) (7,798) 5,352,910 155,346,534 Total capital assets, net $ 185,695,023 $ 11,757,284 $ (477,798) $ 196,974,509 - $ City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
81 Note 6 – Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation and amortization expense were charged to the functions/programs of the governmental activities as follows:

General government $ 6,052,041
Public protection 360,802
Social services 11,981
Public ways and facilities 992,944
Community development 8,667
Culture and recreation 707,562
Internal service funds 589,095
Total depreciation expenses $ 8,723,092
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2021, is as follows:

Balance Balance
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated
Land $ 9,347,017 $ - $ - $ 9,347,017 - $
Construction in progress 1,426,412 2,185,632 (2,000,000) - 1,612,044 Total capital assets, not being depreciated 10,773,429 2,185,632 (2,000,000) - 10,959,061 Capital assets, being depreciated
Building and improvements 67,924,082 - 2,000,000 - 69,924,082 Infrastructure 100,160,267 1,147,411 - 101,307,678 -
Equipment 5,998,392 473,132 (799,490) 5,672,034 -
Total capital assets, being depreciated 174,082,741 1,620,543 (799,490) 2,000,000 176,903,794 Accumulated depreciation:

Building and improvements (34,231,288) (2,065,425) - (36,296,713) - Infrastructure (40,123,306) (2,013,304) - (42,136,610) - Equipment (3,589,962) (346,567) 799,490 (3,137,039) -
Total accumulated depreciation (77,944,556) (4,425,296) 799,490 (81,570,362) - Total capital assets, being depreciated, net 96,138,185 (2,804,753) 2,000,000 - 95,333,432 Total capital assets, net $ 106,911,614 $ (619,121) $ - $ 106,292,493 - $ Depreciation expense was charged to the functions/programs of the business-type activities as follows:

Water $ 884,171
Sewer 2,471,765
Drainage operations 344,997
Local transit 424,873
Airport 299,490
Total depreciation expenses $ 4,425,296
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
82 Note 6 – Capital Assets (Continued)
C. Fiduciary Fund Financial Statements
The summary of changes in capital assets for fiduciary funds for the year ended June 30, 2021, is as follows:

Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Capital assets, not being depreciated
Land $ 14,786 $ 1,916 $ 16,702 - $
Total capital assets, not being depreciated 14,786 1,916 16,702 - Capital assets, being depreciated
Building and improvements 2,359,125 - 2,359,125 -
Total capital assets, being depreciated 2,359,125 - 2,359,125 - Accumulated depreciation:

Building and improvements (730,052) (65,849) (795,901) - Total accumulated depreciation (730,052) (65,849) (795,901) - Total capital assets, being depreciated, net 1,629,073 (65,849) 1,563,224 - Total capital assets, net $ 1,643,859 $ (63,933) $ 1,579,926 - $ Depreciation expense for fiduciary fund financial statements for the year ended June 30, 2021 was $65,849.

Note 7 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in the long-term liabilities of the governmental activities for the year ended June 30, 2021, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2020 Issued Retired June 30, 2021 One Year Than One Year Governmental Activities:

Direct borrowings:

Capital leases:

ERP System and Fire Truck $ 163,500 $ (163,500) - $ $ - $ - $ - Solar Energy Lease Purchase 19,432,000 - 19,432,000 - 788,000 18,644,000 Total capital leases 19,595,500 (163,500) - 19,432,000 788,000 18,644,000 Loans payable:

Police Facility Commercial Loan 633,600 (108,200) - 525,400 111,200 414,200 Total loans payable 633,600 (108,200) - 525,400 111,200 414,200 Public borrowings:

Lease revenue bonds:

Series 2019, New Fire Station 3,880,000 (130,000) - 3,750,000 135,000 3,615,000 plus: bond premium 615,005 (33,155) - 581,850 581,850 - Total lease revenue bonds 4,495,005 (163,155) - 4,331,850 135,000 4,196,850 Total $ 24,724,105 $ (434,855) - $ $ 24,289,250 $ 1,034,200 $ 23,255,050 Classification
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
83 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
ERP System and Fire Truck (Direct Borrowing)
In August 2015, the City entered into a five-year equipment lease-purchase agreement for the purchase of Enterprise Resource Planning (ERP) system to be installed at the City Hall and a fire truck with Holman Capital Corporation. Holman Capital Corporation deposited $1,540,065 into the Escrow Fund, which the Community Business Bank is the escrow agent, for the acquisition of the equipment and for the payment of issuance costs. The related equipment will become the property of the City when all terms of the lease agreements are met. The purchase price of the equipment was $1,540,065 and is payable over a period of five years. Semi-monthly payments on the agreement are $165,715. The effective interest rate on the contract is 2.71%. The capital lease was paid off in August 2020. At June 30, 2021, the outstanding balance of the capital lease was paid in full. 2019 Solar Energy Lease Purchase (Direct Borrowing)
On December 30, 2019, the City entered into an equipment lease/purchase agreement in a direct placement transaction with Bank of America for an energy improvement and upgrade project (2019 Solar Equipment Lease) in the amount of $19,432,000. The energy project improvements include HVAC upgrade, LED lighting, solar streetlights, EV charging stations and PV solar.

The capital lease transaction closed on December 30, 2019. The interest was capitalized for the first two years, with interest only payments beginning June 1, 2020 through June 1, 2021 and principal and interest due in semiannual payments, payable June 1st and December 1st thereafter, with an interest rate of 2.77%. At June 30, 2021, the outstanding balance of the capital lease was $19,432,000.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 788,000 $ 527,352 $ 1,315,352
2023 810,000 505,220 1,315,220
2024 833,000 482,465 1,315,465
2025 856,000 459,072 1,315,072
2026 880,000 435,028 1,315,028
2027-2031 4,786,000 1,790,114 6,576,114
2032-2036 5,499,000 1,078,929 6,577,929
2037-2039 4,980,000 280,655 5,260,655
Total $ 19,432,000 $ 5,558,835 $ 24,990,835
The City entered into capital lease-purchase agreements whereby the lessor acquired certain capital assets and leased them to the City with the option to purchase. Unspent capital lease proceeds are included in restricted cash and investments. The leased assets are included in capital assets and are summarized by major asset class below:

Unspent capital lease proceeds $ 6,262,355
Construction in progress 14,030,233
Total $ 20,292,588
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
84 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2019 Refunding of the Police Facility (Police Facility Commercial Loan) (Private Borrowing) In December 2005, the City entered into a capital lease agreement with La Salle Bank (and subsequently sold to Capital One Public Funding, LLC) to lease a portion of the construction cost for the police facility. The entire purchase price of the police station was $5,200,000. The leased portion of the police station was $1,500,000 and was payable over a period of twenty years.

On January 1, 2018, the capital lease was refunded and the Financing Authority paid the City an advance rental for the use and right to the possession of the Police and Golf Course facilities for a total of $2,553,000. The lease was then assigned to Zions Bank/California Bank & Trust on the same day and named the Police Facility Commercial Loan. The bonds are due in annual installments of $50,900 to $61,600 beginning May 2018 with interest rate fixed

2.760% per annum payable semi-annually. Total principal and interest remaining on the agreement is payable through 2026. At June 30, 2021, the outstanding balance was $525,400.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 111,200 $ 13,739 $ 124,939
2023 114,400 10,648 125,048
2024 117,400 7,471 124,871
2025 120,800 4,206 125,006
2026 61,600 850 62,450
Total $ 525,400 $ 36,914 $ 562,314
2019 Lease Revenue Bonds (Fire Station) (Public Offering) The Madera Public Financing Authority issued the Lease Revenue Bonds 2019 on June 1, 2019 for $4,005.000.

The proceeds of the bonds will be used to finance the construction of a fire station. The City entered into a Facilities Lease Agreement with the Madera Public Financing Authority to make rental payments. The Bonds are due in annual installments of $230,000 to $307,000 through February 1, 2039 with interest payable semiannually on February 1 and August 1 of each year with interest rate from 3.00% to 5.00%. At June 30, 2021 the outstanding balance was $3,750,000.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 135,000 $ 168,000 $ 303,000 $
2023 145,000 162,600 307,600
2024 150,000 155,350 305,350
2025 155,000 147,850 302,850
2026 165,000 140,100 305,100
2027-2031 955,000 568,250 1,523,250
2032-2036 1,200,000 321,600 1,521,600
2037-2039 845,000 68,600 913,600
Total $ 1,732,350 3,750,000 $ 5,482,350 $
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
85 Note 7 – Long-Term Liabilities (Continued)
B. Business-Type Activities
A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2021, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2020 Issued Retired June 30, 2021 One Year Than One Year Business-Type Activities:

Direct borrowings:

Loans payable:

CIEDB loan $ 6,697,283 $ (6,697,283) - $ $ - $ - $ -
BBVA loan 6,472,000 - 6,472,000 372,000 6,100,000
Airport Hanger loan 53,120 - - 53,120 25,939 27,181
Golf Course commercial loan 1,080,700 (296,600) - 784,100 306,200 477,900 Total loans payable 7,831,103 6,472,000 (6,993,883) 7,309,220 704,139 6,605,081 Public borrowings:

Bonds payable:

Water and Wastewater Refunding Revenue
Bonds, Series 2015 25,680,000 (1,200,000) - 24,480,000 1,250,000 23,230,000 2020 Water Revenue Refunding Bonds 8,642,823 (409,781) - 8,233,042 418,148 7,814,894 Total bonds payable 34,322,823 (1,609,781) - 32,713,042 1,668,148 31,044,894 Total $ 42,153,926 $ 6,472,000 $ (8,603,664) $ 40,022,262 $ 2,372,287 $ 37,649,975 Classification
California Infrastructure and Economic Development Bank (Private Borrowing) Loan payable to California Infrastructure and Economic Development Bank (CIEDB) for the regional wastewater treatment plant upgrade and expansion project; semi-annual installments of $383,084 to $525,788, including interest at 3.01% per annum. The CIEDB Loan was refinanced in January 2021 with a taxable loan from BBVA.

At June 30, 2021, the outstanding balance of the California Infrastructure and Economic Development Bank loan was paid in full.

BBVA Compass Loan (Taxable) (Refinance CIEDB Loan)
In January 2021, the City refinanced the CIEDB Loan for the purpose of saving on annual debt service costs. The loan, in the amount of $6,472,000, is for 15 years with an effective interest rate of 2.41%. The loan is a taxable loan. Annual installment payments range from $502,989 to $522,626. The average fiscal year savings is $24,655, with a total savings of $369,829. On June 30, 2021 the outstanding balance was $6,472,000.

The annual debt service requirements on June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 372,000 $ 150,626 $ 522,626 $
2023 379,000 142,443 521,443
2024 387,000 133,213 520,213
2025 395,000 123,789 518,789
2026 404,000 114,162 518,162
2027-2031 2,150,000 419,099 2,569,099
2022-2036 2,385,000 146,106 2,531,106
Total $ 1,229,438 6,472,000 $ 7,701,438 $
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
86 Note 7 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Airport Hanger Loan (Private Borrowing)
Loan payable to the Department of Transportation, Division of Aeronautics for the purchase of fourteen airplane hangars; annual installments of $14,131 to $27,180, including interest at 4.7829%. At June 30, 2021, the total principal and interest remaining on the Department of Transportation, Division of Aeronautics loan was $56,960.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 25,939 $ 2,541 $ 28,480 $
2023 27,181 1,300 28,481
Total $ 3,841 53,120 $ 56,961 $
2018 Refunding of the 1993 Variable Rate Demand Bonds (Golf Course Commercial Loan) (Private Placement) In May 1993, the Financing Authority issued Variable Rate Demand Bonds in the aggregate principal of $5,280,000. The proceeds were used to redeem $4,835,000 of its December 8, 1989 Lease Revenue Bonds, Series A, and $262,450 for additional Golf Course construction.

On January 1, 2018, the Bonds were refunded and the Financing Authority paid the City an advance rental for the use and right to the possession of the Golf Course and Police facilities for a total of $2,553,000. The lease was then assigned to Zions Bank/California Bank & Trust on the same day and named the Golf Course Commercial Loan.

The loan is due in annual installments of $138,100 ($10,600 first year) to $161,800 beginning May 2018 with interest rate fixed 3.190% per annum payable semi-annually. Total principal and interest remaining on the agreement is $822,015, payable through 2024. At June 30, 2021, the outstanding balance was $784,100.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 306,200 $ 22,590 $ 328,790 $
2023 316,100 12,744 328,844
2024 161,800 2,581 164,381
Total $ 37,915 784,100 $ 822,015 $
Water and Wastewater Refunding Revenue Bonds, Series 2015 (Public Offering) Water and Wastewater Refunding Revenue Bonds, Series 2015 were issued by the Financing Authority in December 2015 for $30,140,000. Proceeds from the bonds were used to refund $30,440,000 of its Water and Wastewater Refunding Revenue Bonds, Series 2016. The bonds are due in annual installments of $70,000 to $2,080,000 through March 1, 2036, with interest payable semiannually on September 1 and March 1 of each year at 3.700%. At June 30, 2021, the outstanding balance of the Water and Wastewater Revenue Bonds was $24,480,000.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
87 Note 7 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Water and Wastewater Refunding Revenue Bonds, Series 2015 (Public Offering) (Continued) The Financing Authority has pledged a portion of future water and wastewater revenue to repay the 2015 Water and Wastewater Revenue Bonds. For the year ended June 30, 2021, total principal and interest paid was $2,150,160, and net revenues were $11,537,418. Total principal and interest remaining on the agreement is $32,337,690 payable through 2036.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 1,250,000 $ 905,760 $ 2,155,760 $
2023 1,295,000 859,510 2,154,510
2024 1,340,000 811,595 2,151,595
2025 1,395,000 762,015 2,157,015
2026 1,450,000 710,400 2,160,400
2027-2031 8,070,000 2,707,845 10,777,845
2032-2036 9,680,000 1,100,565 10,780,565
Total $ 7,857,690 24,480,000 $ 32,337,690 $
Water Refunding Revenue Bonds, Series 2019 (Public Offering) Water Refunding Bonds, Series 2019 were issued by the Financing Authority in December 2019 for $9,016,903.

The City used the proceeds to refund the outstanding principal of the Water Revenue Bonds, Series 2010 in the amount of $9,530,000. The bonds are due semi-annual installments of $204,890 to $312,774 with interest rate fixed at 2.64% per annum payable semi-annually. Total principal and interest remaining on the bonds is payable through 2037. At June 30, 2021 the outstanding principal and interest balance was $10,144,042. The aggregate debt service payments of the new debt are $2,587,313 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $2,053,508.

The Financing Authority has pledged a portion of future water and wastewater revenue to repay the 2019 Water Revenue Bonds. For the year ended June 30, 2021, total principal and interest paid was $635,247, and net revenues were $6,697,361.

The annual debt service requirements at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 418,148 $ 214,592 $ 632,740
2023 435,546 203,439 638,985
2024 447,120 191,864 638,984
2025 457,908 179,989 637,897
2026 467,850 167,834 635,684
2027-2031 2,519,015 646,632 3,165,647
2032-2036 2,861,907 294,264 3,156,171
2037 625,548 12,386 637,934
Total $ 8,233,042 $ 1,911,000 $ 10,144,042
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
88 Note 7 – Long-Term Liabilities (Continued)
C. Fiduciary Fund Financial Statements
A summary of changes in the long-term liabilities of the fiduciary fund financial statements for the year ended June 30, 2021, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2020 Issued Retired June 30, 2021 One Year Than One Year Fiduciary Activities:

Public borrowings:

Tax allocation bonds:

Series 2018A 30,855,000 $ - $ (670,000) $ $ 30,185,000 $ 710,000 $ 29,475,000 Series 2018B 3,440,000 (655,000) - 2,785,000 680,000 2,105,000 Add: unamortized bond premiums 4,125,753 (232,783) - 3,892,970 3,892,970 - Total tax allocation bonds 38,420,753 (1,557,783) - 36,862,970 1,390,000 35,472,970 Total $ 38,420,753 $ (1,557,783) - $ $ 36,862,970 $ 1,390,000 $ 35,472,970 Classification
Tax Allocation Refunding Bonds, Series 2018A and 2018B (Public Offering) On July 17, 2018, the Successor Agency to the Former Madera Redevelopment Agency issued $31,445,000 of Tax Allocation Refunding Bonds, Series 2018A and $4,065,000 of Tax Allocation Refunding Bonds, Series 2018B (collectively the “2018 TARBs”) to (a) refund four outstanding series of bonds payable (the 1998 Tax Allocation Redevelopment Project Bonds, the 2003 Tax Allocation Refunding and Redevelopment Project Bonds, the Madera Redevelopment Agency Subordinate Tax Allocation Bonds, Series 2008A, and the Madera Redevelopment Agency Housing Set-Aside Subordinate Tax Allocation Bonds, Series 2008B) from tax increment revenue generated in the Madera Redevelopment Project Area (the “Project Area”), (b) fund a reserve account, and (c) pay the costs of issuance of the bonds. The 2018 TARBs are payable from and secured by a pledge of tax revenues to be derived from the Project Area.

The 2018 TARBs consist of serial bonds maturing from 2019 through 2038 in annual installments of $390,000 to $2,405,000. Interest is due and payable semi-annually on March 1 and September 1 of each year at rates ranging from 3.0% to 5.0% commencing March 1, 2019. Annual principal on the bonds is due on September 1 of each year. The bonds are subject to federal arbitrage requirements. The aggregate debt service payments of the new debt are $11,314,301 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $8,659,587.

A reserve account is required to be maintained in the amount of the lesser of (i) 10% of the original aggregate principal amount of the 2018 TARBs, or (ii) 125% of the average annual debt service with respect to the 2018 TARBs, or (iii) the maximum annual debt service with respect to the 2018 TARBs. As of June 30, 2021, the reserve requirement was met through the City’s purchase of a surety policy in-lieu of the cash reserve requirement. The total principal and interest outstanding at June 30, 2021 is $47,309,758.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
89 Note 7 – Long-Term Liabilities (Continued)
C. Fiduciary Fund Financial Statements (Continued)
Tax Allocation Refunding Bonds, Series 2018A and 2018B (Public Offering) (Continued) The annual debt service requirements for the 2018 TARBs outstanding at June 30, 2021 are as follows:

Year Ending
June 30, Principal Interest Total
2022 $ 710,000 $ 1,380,025 $ 2,090,025
2023 770,000 1,343,025 2,113,025
2024 1,005,000 1,298,650 2,303,650
2025 1,045,000 1,247,370 2,292,370
2026 1,230,000 1,190,525 2,420,525
2027-2031 9,130,000 4,812,400 13,942,400
2032-2036 11,195,000 2,585,090 13,780,090
2037-2039 5,100,000 269,687 5,369,687
Total $ 30,185,000 $ 14,126,772 $ 44,311,772
Tax Allocation Refunding Bonds, Series 2018A
Year Ending
June 30, Principal Interest Total
2022 $ 680,000 $ 81,485 $ 761,485
2023 670,000 60,191 730,191
2024 510,000 40,895 550,895
2025 525,000 23,296 548,296
2026 400,000 7,120 407,120
Total $ 2,785,000 $ 212,987 $ 2,997,987
Tax Allocation Refunding Bonds, Series 2018B
Year Ending
June 30, Principal Interest Total
2022 1,390,000 $ 1,461,510 $ 2,851,510 $
2023 1,440,000 1,403,216 2,843,216
2024 1,515,000 1,339,545 2,854,545
2025 1,570,000 1,270,666 2,840,666
2026 1,630,000 1,197,645 2,827,645
2027-2031 9,130,000 4,812,400 13,942,400
2032-2036 11,195,000 2,585,090 13,780,090
2037-2039 5,100,000 269,687 5,369,687
Total $ 14,339,759 32,970,000 $ 47,309,759 $
Aggregate Total
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
90 Note 8 – Special Assessment Debt with No City Commitment The City issued special tax and assessment bonds on behalf of property owners, pursuant to the Improvement Bond Act of 1915 and the Mello-Roos Community Facilities Act of 1982, to finance the acquisition and construction of certain infrastructure improvements within the assessment districts and community facilities districts.

The City acts solely as an agent for those paying special tax and assessments and remits the amounts collected to the bondholders of these fixed-rate Improvement Bond Act of 1915 and Mello-Roos Community Facilities Act of 1982 issues. The City is acting as an agent and is in no way liable for the special assessment debt and, accordingly, the debt is not recorded in these financial statements.

On January 1, 2018, the City of Madera, on behalf of the City of Madera Community Facilities District No. 2006-1, issued the City of Madera Community Facilities District No. 2006-1 Special Tax Refunding Bonds Series 2018 to refund the CFD 2006-1 Series Special Tax Bond for the purpose of creating annual debt savings. Total debt service payments were reduced by $67,278. The amount of principal outstanding as of June 30, 2021 is $2,241,106 The bonds are not a general obligation of the City but are limited obligations, payable solely from special tax and assessments.

The City has no obligation beyond the balances in the designated agency funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of the available funds of the City. Neither the faith and credit nor the taxing power of the City, or the State of California, or any political subdivision thereof is pledged to the payment of these bonds.

Noncommittal debt amounts issued and outstanding at June 30, 2021 are as follows:

Outstanding
Original Balance
Amount June 30, 2021
CFD 2006-1, Series Special Tax Bonds Refunding Bonds Series 2019 2,452,228 $ $ 2,241,106 Total $ 2,452,228 $ 2,241,106
Note 9 – Compensated Absences
A. Governmental Activities
A summary of changes in the compensated absences balances for the governmental activities for the year ended June 30, 2021 is as follows:

Balance Balance Due within Due in More
July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year Compensated absences 1,812,503 $ $ 1,132,594 $ (1,144,111) $ 1,800,986 $ 182,655 $ 1,618,331 Total $ 1,812,503 $ 1,132,594 $ (1,144,111) $ 1,800,986 $ 182,655 $ 1,618,331 Classification
Compensated absences in the governmental activities are obligations of the following funds:

Governmental Funds $ 1,612,491
Fleet Maintenance 37,956
Facilities Maintenance 99,903
Technology 50,636
Total $ 1,800,986
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
91 Note 9 – Compensated Absences (Continued)
B. Business-Type Activities
A summary of changes in the compensated absences balances for the business-type activities for the year ended June 30, 2021 is as follows:

Balance Balance Due within Due in More
July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year Compensated absences 377,157 $ $ 249,972 $ (224,092) $ 403,037 $ 224,083 $ 178,954 Total $ 377,157 $ 249,972 $ (224,092) $ 403,037 $ 224,083 $ 178,954 Classification
Compensated absences in the business-type activities are obligations of the following funds:

Water Fund $ 166,344
Sewer Fund 136,637
Solid Waste Fund 43,876
Drainage Operations Fund 20,617
Local Transit Fund 27,366
Airport Fund 8,197
Total $ 403,037
Note 10 – Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City obtains insurance coverage.

The City is a member of the Central San Joaquin Valley Risk Management Authority (CSJVRMA), a public entity risk pool for workers’ compensation and general liability insurance. The CSJVRMA is a consortium of fifty-five cities located in California’s San Joaquin Valley. It was established under the provisions of California Government Code Section 6500 et. seq. CSJVRMA is governed by a Board of Directors, consisting of one member appointed by each member city. The day-to-day business operations are handled by a management group employed by CSJVRMA. The relationship between the City and CSJVRMA is such that the CSJVRMA is not considered a component unit of the City for financial reporting purposes.

General Liability Insurance coverage is addressed via retention maintained by the City and participation in CSJVRMA.

The City maintains a self-insured retention level of $100,000 and participates in the CSJVRMA risk pool for coverage up to $1,000,000. CSJVRMA participates in an excess pool, which provides coverage from $1,000,000 to $29,000,000.

Workers’ Compensation coverage is also addressed via a retention maintained by the City and participation in CSJVRMA. The City maintains a self-insured retention level of $100,000 and participates in the CSJVRMA risk pool for additional coverage up to $250,000. CSJVRMA also participates in an excess pool which provides workers’ compensation coverage from $250,000 to $500,000 and purchases excess insurance of approximately $500,000 to the statutory limit.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
92 Note 10 – Risk Management (Continued)
Public entity risk pools are formally organized and separated entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influences by member municipalities beyond their representation of that board. Obligations and liabilities of these risk pools are not the City's responsibility.

CSJVRMA is currently operating as a common risk management and insurance program for 54 member cities. The program's general objectives are to formulate, develop, and administer, on the behalf of the member cities, a program of insurance, to obtain lower cost for that coverage, and to develop a comprehensive loss control program. A member may withdraw from CSJVRMA only by giving six-month notice. Cities applying for membership in CSJVRMA may do so on approval of a two-thirds vote of the board of CSJVRMA.

The latest financial information of the CSJVRMA for fiscal year ended June 30, 2021, is as follows:

Total Assets $ 150,621,596
Total Liabilities $ 129,774,819
Net Position $ 20,846,777
Operating Revenues $ 55,391,674
Operating Expenses $ 54,084,619
Nonoperating Revenues (Expenses) $ (224,620)
Change in Net Position $ 1,082,435
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
93 Note 11 – Pension Plans
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution made after measurement date:

CalPERS Miscellaneous $ 1,894,800 1,389,269 $ 3,284,069 CalPERS Safety 2,879,830 2,879,830 -
Total pension contribution made after measurement date 4,774,630 1,389,269 6,163,899 Projected earnings on pension plan investments in excess of actual earnings:

CalPERS Miscellaneous 724,968 531,546 1,256,514
CalPERS Safety 1,644,262 1,644,262 -
Total projected earnings on pension plan investments in excess of actual earnings 2,369,230 531,546 2,900,776 Difference between expected and actual experience:

CalPERS Miscellaneous 107,354 78,712 186,066
CalPERS Safety 1,293,064 1,293,064 -
Total difference between expected and actual experience 1,400,418 78,712 1,479,130 Employer contributions in excess of proportionate share of contribution:

CalPERS Safety 17,800 - 17,800
Total employer contributions in excess of proportionate share of contribution 17,800 - 17,800 Total deferred outflows of resources
CalPERS Miscellaneous 2,727,122 1,999,527 4,726,649
CalPERS Safety 5,834,956 5,834,956 -
Total deferred outflows of resources $ 8,562,078 $ 1,999,527 $ 10,561,605 Net pension liability:

CalPERS Miscellaneous $ 21,694,241 $ 8,583,714 $ 30,277,955 CalPERS Safety 21,203,994 21,203,994 -
Total net pension liability $ 42,898,235 $ 8,583,714 $ 51,481,949 City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
94 Note 11 – Pension Plans (Continued)
A. Summary (Continued)
Governmental Business-Type
Activities Activities Total
Deferred inflows of resources:

Actual earnings on pension plan investments in excess of projected earnings:

CalPERS Miscellaneous $ 506,888 241,791 $ 748,679 $
CalPERS Safety - - -
Total actual earnings on pension plan investments in excess of projected earnings 506,888 241,791 748,679 Adjustment due to difference in proportions
CalPERS Safety - 30,244 30,244
Total adjustment due to difference in proportions - 30,244 30,244 Changes of assumptions
CalPERS Miscellaneous 73,041 34,841 107,882
CalPERS Safety - 70,631 70,631
Total difference between expected and actual experience 73,041 105,472 178,513 Total deferred inflows of resources
CalPERS Miscellaneous 579,929 276,632 856,561
CalPERS Safety - 100,875 100,875
Total deferred inflows of resources $ 579,929 377,507 $ 957,436 $ Pension expenses:

CalPERS Miscellaneous $ 2,889,708 $ 1,143,364 $ 4,033,072 CalPERS Safety 3,817,610 3,817,610 -
Total net pension expenses $ 6,707,318 $ 1,143,364 $ 7,850,682 B. City Miscellaneous Plan
Plan Description
Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Miscellaneous Plan Agent multiple-employer defined benefit plan or the Safety Plan Cost-sharing multipleemployer defined benefit administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
95 Note 11 – Pension Plans (Continued)
B. City Miscellaneous Plan (Continued)
Employees Covered
At June 30, 2020, the measurement date, the following employees were covered by the benefit terms for the Plan:

Active employees 166
Transferred and terminated employees 258
Retired employees and beneficiaries 255
Total 679
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Prior to January 1, 2011 thru On or After
Hire Date January 1, 2011 January 1, 2013 January 1, 2013 Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 2.000% to 2.500% 1.092% to 2.418% 1.000% to 2.500% Required employee contribution rates 8.00% 7.000% 6.250% Required employer contribution rates 10.462% 10.462% 10.462% Final Annual Compensation 1 year 1 year 1 year
City Miscellaneous Plan
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2021, the employer contributions made for the Miscellaneous Plan was $3,284,069.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
96 Note 11 – Pension Plans (Continued)
B. City Miscellaneous Plan (Continued)
Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

Actuarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

7.15%

2.63%
Varies by Entry Age and Service

7.25%
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2018 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.

Discount Rate
In determining the long-term expected rate of return, CalPERS took into account, both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. 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 (11-60 years) using a building-block approach.

Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
97 Note 11 – Pension Plans (Continued)
B. City Miscellaneous Plan (Continued)
Discount Rate (Continued)
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class New Strategic Allocation Real Return Years 1 - 10 1 Real Return Years 11 + 2 Global equity 50.00% 4.80% 5.98%
Global fixed income 28.00% 1.00% 2.62%
Inflation sensitive assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period.

The discount rate used to measure the total pension liability was 7.15% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous Plan - 53 $ 42,527,637 $ 30,277,955 $ 20,140,746 Plan's Aggregate Net Pension Liability/(Asset)
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
98 Note 11 – Pension Plans (Continued)
B. City Miscellaneous Plan (Continued)
Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period:

Total Pension
Liability
Plan Fiduciary Net
Position Net Pension Liability
Balance at June 30, 2019 (Valuation Date) 93,029,985 $ 63,607,135 $ 29,422,850 $ Changes in the year:

Service cost 1,719,344 - 1,719,344
Interest on the total pension liabilities 6,484,056 - 6,484,056 Changes in assumptions - - -
Differences between expected and actual experience (758,426) - (758,426) Benefit payments, including refunds of members contributions (4,890, (4,890,282) 282) - Contributions - employer - 2,776,816 (2,776,816)
Contributions - employee - 736,497 (736,497)
Net investment income - 3,166,226 (3,166,226)
Administrative expenses - (89,670) 89,670
Net changes 2,554,692 1,699,587 855,105
Balance at June 30, 2019 (Measurement Date) 95,584,677 $ 65,306,722 $ 30,277,955 $ Miscellaneous Plan
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense in the amount of $4,033,072 for the miscellaneous plans.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for the Miscellaneous Plan for the 2019-20 measurement period is 3.0 years, which was obtained by dividing the total service years of 1,984 (the sum of remaining service lifetimes of the active employees) by 665 (the total number of participants: active, inactive, and retired).

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
99 Note 11 – Pension Plans (Continued)
B. City Miscellaneous Plan (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) 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 made subsequent
to measurement date $ 3,284,069 $ -
Difference between projected and actual
earning on pension plan investments 1,256,514 (748,679) Changes in assumptions - (107,882)
Differences between expected
and actual experience 691,683 (505,617)
Total $ (1,362,178) 5,232,266 $
Miscellaneous Plan
For the City Miscellaneous Plan, $2,778,718 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30,
2022 (8,690) $
2023 (367)
2024 330,717
2025 264,359
2026 -
Thereafter -
$ 586,019
Deferred Outflows/(Inflows)
of Resources
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
100
Note 11 – Pension Plans (Continued)
C. City Safety Plan
Plan Description
Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Miscellaneous Plan Agent multiple-employer defined benefit plan or the Safety Plan Cost-sharing multipleemployer defined benefit administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Employees Covered
At June 30, 2020, the measurement date, the following employees were covered by the benefit terms the Plan:

Active employees 68
Transferred and terminated employees 44
Retired employees and beneficiaries 116
Total 228
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Prior to January 1, 2011 thru On or After
Hire Date January 1, 2011 January 1, 2013 January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3.000% 2.400% to 3.000% 2.000% to 2.700% Required employee contribution rates 9.00% 9.000% 11.500% Required employer contribution rates 23.674% 20.585% 13.044% Final Annual Compensation 1 year 1 year 1 year
Safety
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
101
Note 11 – Pension Plans (Continued)
C. City Safety Plan (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability.

The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2021, employer contributions made for the Safety Cost-sharing Plan was $2,879,830.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plans is measured as of June 30, 2020, and the total pension liability for each 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 plans relative to the projected contributions of all participating employers, actuarially determined.

As of June 30, 2021, the City reported net pension liability for its proportionate shares of the net pension liability of the Safety Plan as follows:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
Liability Position Liability/(Asset)
Balance at: 6/30/19 (Valuation date) 67,860,669 $ 48,056,036 $ 19,804,633 Balance at: 6/30/20 (Measurement date) 69,747,849 48,543,855 21,203,994 Net Changes during 2019-2020 1,887,180 487,819 1,399,361 Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2019). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2020). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2020 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2019-20).

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
102
Note 11 – Pension Plans (Continued)
C. City Safety Plan (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

The City’s proportionate share of the net pension liability for the Safety Plan as of June 30, 2019 and 2020 was as follows:

Proportion June 30, 2019 0.31725%
Proportion June 30, 2020 0.31827%
Change - Increase (Decrease) 0.00101%
For the year ended June 30, 2021, the City recognized pension expense in the amount of $3,817,610 for the Safety Plan.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The EARSL for PERF C for the measurement date ending June 30, 2019 is 3.8 years, which was obtained by dividing the total service years of 516,147 (the sum of remaining service lifetimes of the active employees) by 135,474 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
103
Note 11 – Pension Plans (Continued)
C. City Safety Plan (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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 made subsequent
to measurement date $ 2,879,830 $ -
Difference between projected and actual earning on
pension plan investments - 460,852
Adjustment due to differences in proportions - (30,244) Changes in assumptions - (70,631)
Difference between actual and expected experience 1,644,262 - Difference between employer's actual contributions
and proportionate share of contributions 17,800 -
Total $ 5,002,744 $ (100,875)
For the City Safety Plan, $2,879,830 was reported as deferred outflows of resources related to pensions resulting from City’s 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 outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30,
Deferred Outflows/
(Inflows) of Resources
2022 $ 464,042
2023 782,733
2024 544,351
2025 230,913
2026 -
Thereafter -
$ 2,022,039
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
104
Note 11 – Pension Plans (Continued)
C. City Safety Plan (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2020 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2019 total pension liability. Both the June 30, 2020 and the June 30, 2019 total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit
Increase
Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies,

2.75% thereafter
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

7.15%

2.75%
Varies by Entry Age and Service

7.65%
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 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.

Discount Rate
The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. 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 (11-60 years) using a building block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
105
Note 11 – Pension Plans (Continued)
C. City Safety Plan (Continued)
Discount Rate (Continued)
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class New Strategic Allocation Real Return Years 1 - 10 1 Real Return Years 11 + 2 Global equity 50.00% 4.80% 5.98%
Global fixed income 28.00% 1.00% 2.62%
Inflation sensitive assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period.

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 City Safety Plan, calculated using the discount rate for the City Safety 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 one percentage point lower or one percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
$ 30,676,010 $ 21,203,994 $ 13,431,308
Plan's Aggregate Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2021, the Successor Agency reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
106
Note 12 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date 81,989 $ 10,673 $ 92,662 $ Difference between expected and actual experience 162,294 21,127 183,421 Changes in assumptions 324,586 42,252 366,838
Total deferred outflows of resources $ 74,052 568,869 $ 642,921 $ Total OPEB liability:

Total OPEB liability 3,320,208 $ 452,058 $ 3,772,266 $
Total OPEB liability $ 452,058 3,320,208 $ 3,772,266 $
Deferred inflows of Resources:

Changes in assumptions 137,764 $ 22,408 $ 160,172 $
Total deferred inflows of resources $ 22,408 137,764 $ 160,172 $ OPEB Expense $ 38,191 280,497 $ 318,688 $ .

B. General Information about OPEB
Plan Description
Employees of the Miscellaneous bargaining group and other non-represented employees, who retire from the City with ten years or more of contiguous City service, are eligible for a Post-Retirement Health Benefit for themselves and spouse or child or children. This benefit is finite in nature and provides for the cost of benefits for one year only. This cost is computed at the rate of the current health care premiums and the current dental premiums, in place at the time of retirement.

Eligibility
Employees become eligible to retire under PEMHCA and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of covered PERS service, or by attaining qualifying disability retirement status. The City has selected the unequal contribution method, where it contributes a percent of the amount paid for actives to its eligible retirees. The percent increases each year until the City's contribution for retirees eventually equals that for similarly stated active employees. The City currently covers 100% of the cost of medical coverage for active employees and their dependents up to, but not exceeding, the dollar amount of the family premium for the lowest cost HMO.

Membership in the plan consisted of the following at June 30, 2020, the date of the latest actuarial valuation:

Active employees 239
Transferred and terminated employees -
Retired employees and beneficiaries 15
Total 254
City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
107
Note 12 – Other Postemployment Benefits (Continued)
B. General Information about OPEB (Continued)
Contributions
The obligation of the City to contribute to the plan is established and may be amended by the City Council. The City Council has established a policy of funding the actuarially determined contribution (ADC) on a pay as you go basis. For the fiscal year ended June 30, 2020, the City’s average contribution rate was 2.41 % of covered-employee payroll. Employees are not required to contribute to the plan.

C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020. The total OPEB liability at June 30, 2021 was $3,772,266.

Actuarial Assumptions
The total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Assumptions:

Discount Rate
Inflation
Aggregate payroll increases
Expected long-term investment rate of return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate

2.45%

2.75%

3.00%
n/a
CalPERS 1997-2011 Experience Study
Modified projected fully generational with Scale MP-2014

4.50 percent for 2020-2023, 5.20 percent for 2024-2069, and 4.00 percent for 2070 and later years; Medicare ages: 4.00 percent for all years.

The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2019 through June 30, 2020.

Discount Rate
The discount rate used to measure the total OPEB liability was 2.45% percent. This discount rate is the mid-point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index.

Change in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2019 (Measurement Date) 3,284,428 $ Changes Recognized for the Measurement Period:

Service Cost 159,827
Interest on the total OPEB liability 104,757
Difference between expected and actual experience 156,277 Changes of assumptions 263,250
Benefit payments (196,273)
Net Changes during July 1, 2019 to June 30, 2020 487,838 Balance at June 30, 2020 (Measurement Date) $ 3,772,266 City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
108
Note 12 – Other Postemployment Benefits (Continued)
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.45 percent) or 1-percentage- point higher (3.45 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(1.45%) Rate (2.45%) (3.45%)
$ 4,259,802 $ 3,772,266 $ 3,351,358
Plan's Total OPEB Liability
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

Healthcare Cost
-1% Trend Rates 1%
$ 3,263,663 $ 3,772,266 $ 4,387,921
Plan's Total OPEB Liability
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $318,688. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Employer contributions made
subsequent to the measurement date 92,662 $ - $
Difference between expected and actual experience 183,421 - Changes of assumptions 366,838 (160,172)
Total 642,921 $ (160,172) $
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five year period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 9.8 years, which was determined as of June 30, 2020, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
109
Note 12 – Other Postemployment Benefits (Continued)
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Amount reported as deferred outflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2022 54,104 $
2023 54,104
2024 54,104
2025 54,104
2026 54,104
Thereafter 119,567
$ 390,087
Note 13 – Deferred Compensation Plan
A. City
The City offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan was amended so that the assets of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plan assets are administered by an outside party and not subject to the claims of the City’s general creditors, their assets and related liabilities are not on the City’s financial statements in accordance with Governmental Accounting Standards Board (GASB) Statement No. 32, “Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.” Note 14 – Service Concession Agreement
On October 7, 2009, the City entered into an operation and management lease agreement (Agreement) with the Sierra Golf Management, Inc. (SGM), under which SMG will operate and collect user fees from the Madera Municipal Golf Course for the five years with an additional five years extension of the Agreement. SGM will pay the City installment payment over the course of the Agreement; the present value of these installment payments is $130,000. SGM will also pay a “per round” rate that establishes an initial rate of $1.00 per round but increases in later years. SGM is required to operate and maintain the golf course in accordance with the Agreement. The City reports the golf course and related equipment as capital assets with a carrying amount of $2,028,861 at year-end, and reported a receivable and deferred inflow of resources in the amount of $16,670 at year-end pursuant to the service concession arrangement.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
110
Note 15 – Other Required Disclosures
A. Deficit Fund Balances/Net Position
At June 30, 2021, the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(9,774,183).

At June 30, 2021, the following funds had a fund balances (deficit) or unrestricted net position (deficit), which will be eliminated by the City as follows:

Fund Fund Type Deficit Plan to eliminate deficit
Federal Aid Urban Fund Special Revenue Fund $ Federal grant reimbursement 284,980 Street Construction Fund Special Revenue Fund Local transportation fund reimbursement 1,171,655 RDA Successor Agency Private Purpose Trust Fund Fiduciary Fund 29,667,136 Future property tax increment revenue B. Expenditures Exceeding Appropriations
For the year ended June 30, 2021, expenditures exceeded appropriations in the following funds by function:

Excess Expenditures
Fund Function over Appropriations
Landscape Assessment Special Revenue Fund Public ways and facilities $ 32,600 Intermodal Building Special Revenue Fund General government 826 Economic Development Special Revenue Fund Community development 8,410 Low and Moderate Income Housing Special Revenue Fund Community development 703,105 City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
111
Note 16 – Fund Balance Classification
The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds, as follows as of June 30, 2021:

General
Development Solar Energy Lease Non-major
General Impact Capital Projects Governmental
Fund Fee Fund Fund Funds Total
Nonspendable
Prepaid items $ 43,441 $ - $ - $ 4,010 $ 47,451
Inventories 59,681 - - - 59,681
Advances to other funds 36,721 - - - 36,721
Total nonspendable 139,843 - - 4,010 143,853
Restricted
Community development - - 11,620,421 - 11,620,421
Park development - - 104,975 - 104,975
Parking improvements - - 126,261 - 126,261
Public works and transportation - - 12,137,998 - 12,137,998 Special assessment project - - 460,571 - 460,571
Public protection - - 219,724 - 219,724
Capital projects and improvements 15,703,735 - 5,315,158 4,028 21,022,921 Total restricted 15,703,735 - 5,315,158 24,673,978 45,692,871 Committed
General Fund stabilization reserve 9,354,964 - - 9,354,964 - Measure K - Police/Fire Protection 1,840,000 - - 1,840,000 - Total committed 11,194,964 - - 11,194,964 -
Assigned
Golf course capital 20,000 - - - 20,000
Debt service 1,034,200 - - 1,034,200 -
OPEB liability 97,339 - - - 97,339
Insurance reserve 3,038,867 - - 3,038,867 -
Health insurance premiums 2,714,000 - - 2,714,000 -
Future annual stipend payments 1,300,000 - - 1,300,000 - Measure K - Police/Fire Protection 5,701,872 - - 5,701,872 - Total assigned 13,906,278 - - 13,906,278 -
Unassigned 5,482,689 - (1,460,591) - 4,022,098
Total fund balances $ 30,723,774 $ 15,703,735 $ 5,315,158 $ 23,217,397 $ 74,960,064 Note 17 – Commitments and Contingencies
A. Litigation
The City is currently a party to various claims and legal proceedings. Although the outcome of these lawsuits is not presently determinable, it is management’s opinion that the ultimate liabilities, if any, resulting from such claims and proceedings will not materially affect the financial position of the City.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
112
Note 17 – Commitments and Contingencies (Continued)
B. Contingent Liabilities
On March 1, 1993, the City issued Certificates of Participation in the aggregate of $10,250,000 for the benefit of Madera Community Hospital (Hospital), a California nonprofit public benefit corporation. The Hospital is not included in the City’s reporting entity. The City is obligated to make the principal payments only from and to the extent that it receives revenue from the Hospital. They are not secured by any pledge of taxes or other revenues of the City. In addition, the purchase payments are insured by the Office of Statewide Health Planning and Development of the State of California. As of June 30, 2021, the City has not recorded revenues from the Hospital.

C. Federal and State Grants
The City participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit act as amended. Accordingly, the City’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the City anticipates such amounts, if any, will be immaterial.

D. Contractual Commitments
The City has active construction projects as of June 30, 2021. At year-end, the City’s major contractual commitments are as follows:

Contract Remaining
Amount Spent-to-Date Commitment
Water System Condition Assessment/Rehab $ 295,000 $ 255,754 $ 39,246 Sewer System Condition Assessment/Rehab 320,320 205,690 114,630 Northwest Water Storage Tank 392,430 138,759 253,671
Centennial Park, Pan American, & Frank Bergon
ADA & Lighting Improvements 461,867 155,734 306,133
Sewer Main Video Inspection 536,000 505,296 30,704
Olive Avenue Widening 1,060,077 503,031 557,046
Fresno River Trail Undercrossing Gateway/UPRR Construction 1,113,036 1,022,464 90,572 New Fire Station 7,351,030 7,239,545 111,485
Pedestrian Signal at Stadium/Gary Hawk 230,390 138,376 92,014 Consulting Services for Planning Projects 250,000 93,396 156,604 Traffic Signal at Granada Rd/Howard Rd 514,570 327,239 187,331 Traffic Signal at Howard Rd/Westberry 553,724 470,235 83,489 RMRA - Pavement Seals/Overlays 1,069,045 990,521 78,524 Solar and Energy Efficiency Equipment 18,848,862 13,185,067 5,663,795 Total $ 32,996,351 $ 25,231,107 $ 7,765,244
In addition, the City has various contracts with developers for the cost of public improvements made through construction of new developments within the City. The agreements are for the reimbursement of reasonable costs for the construction of public improvements within the planned developments. The City agrees to reimburse developers for the City’s proportionate share of the costs of improvements as determined by the City Engineer.

The City will not reimburse any expenses beyond the actual and reasonable costs of installing the improvements.

City of Madera
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
113
Note 17 – Commitments and Contingencies (Continued)
E. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds.

Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are automatically re-appropriated for the following year. Unencumbered and unexpended appropriations lapse at year-end. Encumbrances outstanding as of June 30, 2021 amounted to $656,611.

Note 18 – Prior Period Adjustments
A. Fiduciary Fund Financial Statements
The beginning net position at July 1, 2020 of the Fiduciary Fund Financial Statements was restated as follows:

Community
Facilities
Districts
Net position, as previously reported, at July 1, 2020 $ - To implement GASB 84 380,534
Net position at July 1, 2020, as restated $ 380,534
Note 19 - Subsequent Events
A. American Rescue Plan Act
On March, 2021, the American Rescue Plan Act was signed into delivering $65 billion of direct and flexible aid to cities and towns across the nation to provide substantial flexibility for each government to meet local needs— including support for households, small businesses, impacted industries, essential workers, and the communities hardest hit by the crisis. Based on the City’s population, the City was allocated $23,070,374 and will be received in two installments starting July 2021.
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115

REQUIRED SUPPLEMENTARY INFORMATION
116
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City of Madera
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2021
117
Budgetary Information
The City adheres to the following general procedures in establishing its annual budget, which is reflected in the accompanying schedules:
 Budgets are legally adopted and formal budgetary integration is employed as a management control device during the year for the General and Special Revenue Funds. Budgets presented in this report for comparison to actual amounts are presented in accordance with accounting principles generally accepted in the United States of America. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments.  Reported budget amounts represent the original legally adopted budget as amended. Individual amendments were not material in relation to the original adopted budget amounts. The City Council may amend the budget to increase appropriations only by a duly adopted minute resolution during a regular meeting, providing that sufficient monies are available and that expenditures of proceeds of taxes will not be increased beyond the constitutional appropriation limit as imposed by Article XIIIB of the State Constitution.

Management can transfer, without City Council approval, budgeted amounts provided they do not increase or decrease total fund appropriations adopted by the City Council.  Unexpended budgeted amounts lapse at the end of the budget year. Spending control for the fund is established by the amount of expenditures budgeted for the fund, but management control is exercised at the budgetary line item levels.
 Expenditures may not legally exceed overall budgeted appropriations.  The budgets of the City’s capital projects are primarily “long-term” budgets which emphasize major programs and capital outlay plans extending over a number of fiscal periods. Therefore, no budget-to-actual schedules are presented for Capital Projects Funds.

City of Madera
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund
For the Year Ended June 30, 2021
118
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 3,771,554 $ 3,771,554 $ 3,882,014 $ 110,460 $ Sales and use taxes 13,260,033 14,560,033 16,894,337 2,334,304 Other taxes 1,114,140 1,114,140 1,516,879 402,739
Investment income (loss) 469,175 439,175 (272,673) (711,848) Franchise fees 666,238 666,238 721,028 54,790
Licenses and permits 1,044,500 1,144,500 1,555,955 411,455 Fines and forfeitures 446,095 446,095 423,780 (22,315)
Intergovernmental 7,629,833 9,177,859 8,954,582 (223,277) Charges for services 1,330,720 1,274,821 1,314,019 39,198 Miscellaneous 313,649 262,261 405,340 143,079
Total revenues 32,856,676 30,045,937 35,395,261 2,538,585 EXPENDITURES:

Current:

General government 2,445,312 3,692,932 3,537,496 155,436 Public protection 20,549,943 20,669,356 19,631,384 1,037,972 Social services 176,236 176,236 131,881 44,355
Public ways and facilities 1,535,889 2,329,290 1,723,490 605,800 Community development 3,573,362 3,961,359 3,646,501 314,858 Culture and recreation 3,268,066 3,294,864 2,790,227 504,637 Capital outlay 286,055 6,213,765 934,925 5,278,840
Debt Service:

Principal 675,400 675,400 401,700 273,700
Interest and fiscal charges 192,161 192,161 192,161 -
Total expenditures 32,702,424 41,205,363 32,989,765 8,215,598 REVENUES OVER (UNDER) EXPENDITURES (2,656,487) (8,348,687) 2,405,496 10,754,183 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 91,475 91,475
Transfers in 3,720,835 3,720,835 3,562,072 (158,763)
Transfers out (350,119) (684,964) (441,429) 243,535
Total other financing sources (uses) 3,370,716 3,035,871 3,212,118 176,247 Net change in fund balance $ 714,229 $ (5,312,816) 5,617,614 $ 10,930,430 FUND BALANCE:

Beginning of year 25,106,160
End of year $ 30,723,774
Budgeted Amounts
City of Madera
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Development Impact Fee Special Revenue Fund For the Year Ended June 30, 2021
119
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) $ 106,831 $ 106,831 $ 143,342 $ 36,511 Charges for services 1,933,879 1,933,879 3,713,231 1,779,352 Total revenues 2,040,710 2,040,710 3,856,573 1,815,863
EXPENDITURES:

Current:

Public ways and facilities 208,240 1,000,293 183,806 816,487 Culture and recreation 700,000 714,485 6,047 708,438
Capital outlay 231,333 5,845,213 2,765,788 3,079,425
Total expenditures 1,139,573 7,559,991 2,955,641 4,604,350 REVENUES OVER (UNDER) EXPENDITURES 901,137 (5,519,281) 900,932 6,420,213 OTHER FINANCING SOURCES (USES):

Transfers out (584,277) (584,277) (390,020) (194,257)
Total other financing sources (uses) (584,277) (584,277) (390,020) (194,257) Net change in fund balance $ 316,860 $ (6,103,558) 510,912 $ 6,614,470 FUND BALANCE:

Beginning of year 15,192,823
End of year $ 15,703,735
Budgeted Amounts
City of Madera
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2021
120
Measurement period, year ended 2019-20 2019-20 2018-19 2017-18 2016-17 2015-16 2013-14 1 Total pension liability
Service cost 1,915,335 $ 1,915,335 $ 2,074,876 $ 1,857,394 $ 1,556,770 $ 1,515,655 $ 1,562,632 $ Interest on total pension liability 6,295,654 6,295,654 5,940,862 5,651,202 5,352,560 5,085,808 4,865,000 Differences between expected and actual
experience 1,363,296 1,363,296 1,082,691 1,184,077 337,609 (269,941) - Changes in assumptions - - (647,285) 4,531,204 - (1,189,492) - Changes in benefit terms - - - - - - -
Benefit payments, including refunds of employee
contributions (4,548,873) (4,548,873) (4,125,431) (3,877,650) (3,532,833) (3,412,481) (3,247,986) Net change in total pension liability 5,025,412 5,025,412 4,325,713 9,346,227 3,714,106 1,729,549 3,179,646 Total pension liability - beginning 88,004,573 88,004,573 83,678,860 74,332,633 70,618,527 68,888,978 65,709,332 Total pension liability - ending (a) $ 93,029,985 93,029,985 $ 88,004,573 $ 83,678,860 $ 74,332,633 $ 70,618,527 $ 68,888,978 $ Plan fiduciary net position
Contributions - employer 2,610,704 2,610,704 2,395,891 2,329,046 $ 1,948,033 $ 1,603,067 $ 1,465,153 $ Contributions - employee 798,675 798,675 858,755 829,670 775,135 705,875 787,068 Investment income (net of administrative expenses) 3,967,331 3,967,331 4,851,004 5,795,462 282,173 1,164,130 7,962,241 Benefit payments (4,548,873) (4,548,873) (4,125,431) (3,877,650) (3,532,833) (3,412,481) (3,247,986) Plan to plan resources 132 132 (140) (1,724) 394 - -
Other (43,264) (43,264) (258,000) (76,926) (32,095) (59,277) (55,556) Net change in plan fiduciary net position 2,784,705 2,784,705 3,722,079 4,997,878 (559,193) 1,314 6,910,920 Plan fiduciary net position - beginning 60,822,430 60,822,430 57,100,351 52,102,473 52,661,666 52,660,352 45,749,432 Plan fiduciary net position - ending (b) $ 63,607,135 $ 63,607,135 $ 60,822,430 $ 57,100,351 $ 52,102,473 $ 52,661,666 $ 52,660,352 Net pension liability - ending (a)-(b) $ 29,422,850 $ 29,422,850 $ 27,182,143 $ 26,578,509 $ 22,230,160 $ 17,956,861 $ 16,228,626 Plan fiduciary net position as a percentage
of the total pension liability 68.37% 68.37% 69.11% 68.24% 70.09% 74.57% 76.44% Covered payroll $ 12,125,388 $ 11,772,221 $ 11,429,341 $ 10,780,624 $ 9,754,797 $ 8,841,088 $ 8,601,515 Net pension liability as a percentage of
covered payroll 242.65% 249.93% 237.83% 246.54% 227.89% 203.11% 188.67% Notes to Schedule:
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.

Benefit changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes).

City of Madera
Required Supplementary Information (Unaudited) (Continued) Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2021
121
Measurement period, year ended 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Plan's proportion of the net pension liability 0.318266% 0.317253% 0.319144% 0.314800% 0.324000% 0.340000% 0.337500% Plan's proportionate share of the net pension liability 21,203,994 $ $ 19,804,633 $ 18,725,928 $ 18,807,385 $ 16,778,473 $ 14,009,122 $ 12,759,288 Plan's covered-employee payroll $ 4,711,908 $ 4,711,908 $ 4,574,668 $ 4,428,574 $ 4,211,168 $ 3,797,547 $ 3,916,737 Plan's proportionate share of the net pension liability as a percentage of covered-employee payroll 450.01% 420.31% 409.34% 424.68% 398.43% 368.90% 325.76% Plan's fiduciary net position $ 48,543,855 $ 48,056,036 $ 44,837,253 $ 41,761,897 $ 37,574,019 $ 38,216,008 $ 37,919,898 Plan's fiduciary net position as a percentage of the
total pension liability 69.60% 70.82% 44.92% 44.75% 46.68% 53.15% 57.52% Plan's proportionate share of aggregate
employer contributions $ 2,464,699 $ 2,197,168 $ 1,942,249 $ 1,806,992 $ 1,650,502 $ 1,388,656 $ 1,405,797 1 Information only presented from the implementation year Safety Plan
City of Madera
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Pension
For the Year Ended June 30, 2021
122
Fiscal Year: 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-141 Contractually determined
contribution (actuarially determined) 3,284,069 $ $ 2,778,718 $ 2,610,313 $ 2,395,891 $ 2,329,046 $ 1,948,033 $ 1,603,067 $ 1,397,058 Contributions in relation to the
actuarially determined contributions (3,284,069) (2,778,718) (2,610,313) (2,395,891) (2,329,046) (1,948,033) (1,603,067) (1,397,058) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 12,125,388 12,489,150 $ 11,772,221 $ 11,429,341 $ 10,780,624 $ 9,754,797 $ $ 8,841,088 $ 8,601,515 Contributions as a percentage of
covered payroll 26.30% 22.92% 22.17% 20.96% 21.60% 19.97% 18.13% 16.24% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality
Miscellaneous Plan

2.63%
Actuarial Value of Assets. For details, see June 30, 2016 Funding Valuation Report.

For details, see June 30, 2018 Funding Valuation Report Entry Age Normal
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2021 were derived from the June 30, 2018 funding valuation report.

2.875%
Varies by entry age and service
The probabilities of retirement are based on the 2014 CalPERS Experience Study for the period from 1997 and 2011.

The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
1 Information only presented from the implementation year

7.00% net of pension plan investment and administrative expenses.

City of Madera
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension (Continued)
For the Year Ended June 30, 2021
123
Fiscal Year: 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-141 Contractually determined
contribution (actuarially determined) 2,879,830 $ $ 2,464,699 2,197,168$ 1,942,249$ $ 1,806,992 1,650,502$ 1,388,656$ 1,405,797$ Contributions in relation to the
actuarially determined contributions (2,879,830) (2,464,699) (2,197,168) (1,942,249) (1,806,992) (1,650,502) (1,388,656) (1,405,797) Contribution deficiency (excess) $ - -$ -$ -$ $ - -$ -$ -$ Covered payroll 4,998,863$ $ 4,853,265 4,711,908$ 4,574,668$ $ 4,428,574 4,211,168$ 3,797,547$ 3,916,737$ Contributions as a percentage of
covered payroll 57.61% 50.78% 46.63% 42.46% 40.80% 39.19% 36.57% 35.89% Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality

2.63%
Varies by entry age and service
Safety Plan
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2021 were derived from the June 30, 2018 funding valuation report.

Entry Age Normal
For details, see June 30, 2018 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2016 Funding Valuation Report.

2.875%

7.00% net of pension plan investment and administrative expenses.

The probabilities of retirement are based on the 2014 CalPERS Experience Study for the period from 1997 and 2011.

The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. Preretirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
1 Information only presented from the implementation year City of Madera
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios For the Year Ended June 30, 2021
124
Measurement period, year ending: 6/30/2020 6/30/2019 6/30/2018 6/30/2017 1 Total OPEB liability
Service cost 159,827 $ 148,304 $ 196,158 $ 165,796 $
Interest 104,757 110,666 97,813 92,870
Changes of benefit terms - - (219,769)
Differences between expected and actual experience 156,277 - 74,529 - Changes of assumptions 263,250 183,321 (254,393) -
Benefit payments, including refunds of member contributions (196,273) (132,070) (89,635) (111,633) Net change in total OPEB liability 310,221 487,838 (195,297) 147,033 Total OPEB liability - beginning 2,974,207 3,284,428 3,169,504 3,022,471 Total OPEB liability - ending (a) $ 3,284,428 3,772,266 $ 2,974,207 $ 3,169,504 $ OPEB fiduciary net position
Contributions - employer 196,273 $ 132,070 $ 89,635 $ 111,633 $ Net investment income - - - -
Benefit payments, including refunds of member contributions (196,273) (132,070) (89,635) (111,633) Administrative expense - - - -
Net change in plan fiduciary net position - - - -
Plan fiduciary net position - beginning - - - -
Plan fiduciary net position - ending (b) $ - - $ - $ - $ Plan net OPEB liability - ending (a) - (b) $ 3,284,428 3,772,266 $ 2,974,207 $ 3,169,504 $ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered-employee payroll $ 13,763,983 10,787,213 $ 13,752,967 $ 13,352,395 $ Plan net OPEB liability as a percentage of covered-employee payroll 34.97% 23.86% 21.63% 23.74% 1 Information only presented from the implementation year

SUPPLEMENTARY INFORMATION
125
Special Revenue Funds:

Special Gas Tax Fund - This fund is used to account for the receipt of gasoline tax revenue paid to the City as a subvention from the State of California. These funds support maintenance activities and to finance street construction projects as provided by State law.

Measure "T" Sales Tax Fund - This fund is used to account for the receipt of gasoline tax revenue paid to the City as a subvention from the State of California. These funds support maintenance activities and to finance street construction projects as provided by State law.

Business Improvement District Fund - This fund is used to account for the City's efforts of the Business Improvement District (BID) to promote commerce in downtown Madera. The funding source is assessment fees.

Park Development Fund - This fund is used for park land acquisition and development. Principal revenue sources are parks acquisition and development fees collected from developers and state revenues for park development.

Parking District Fund - This fund is used to support the activities of the City's Parking Enforcement Office. Nonsworn officers patrols a designated area in Madera's downtown and issues citations to motorists who violate the City's vehicle ordinances.

Federal Aid Urban Fund - This fund is used to report various federal grants awarded to the City by the Federal government not otherwise accounted for in the General Fund or Capital Projects funds. A detailed report by program is available under a separate report meeting the criteria of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all federal grants received by the City.

Street Construction Fund - This fund is used to account for right-of-way acquisition, construction, and improvements related to the City's street system. These projects are funded by various state and federal programs and matching City funds.

Landscape Assessment Fund - This fund is used to account for funds received from the landscaping assessment districts to provide for alternative sources of funding for maintenance and service of landscaping located within the public areas of the assessment districts.

Supplemental Law Enforcement Fund - This fund is used to account for revenues and expenditures associated with front line law enforcement and municipal police services. The funding source is state grant funding.

Intermodal Building Fund - This fund is used to account for the operation and maintenance of the intermodal building facility for use by the City and its tenants. The Intermodal Facility currently houses the MAX system, the Greyhound Bus terminal, and Madera Cab Co. This facility relies solely on grants and collects rent to fund its operations so therefore does not impact the General Funds budget.

Economic Development Fund - This fund is used to account for revenues and expenditures related to programs and projects funded with Economic Development grant proceeds.

Residential Rehab Fund - This fund is used to account for revenues and expenditures related to the City's Down payment Assistance Program (DAP) which assists low-income residents with purchasing their first homes and the Owner Occupied Rehabilitation (OOR) program that helps existing low-income homeowners to make health and safety repairs to their homes.

Non-Major Governmental Funds
126
Special Revenue Funds (Continued):

Low and Moderate Income Housing Fund - This fund is used to account for the balances of the former low and moderate income housing funds of the former Madera Redevelopment Agency and revenues and expenditures related to such housing projects and programs.

Community Facilities Districts (CFD) Fund - This fund is used to account for bond and annual tax assessments proceeds to be used for the construction and implementation of off-site infrastructure improvements. In addition, the Fund accounts for services and administration assessments received annually.

Capital Projects Funds:

Streets and Roads Fund - This fund is used to account for right-of-way acquisition, construction, and improvements related to the City's street system. These projects are funded by various state and federal programs and matching City funds.

Non-Major Governmental Funds (Continued)
127
Special Measure "T" Business
Gas Tax Sales Tax Improvement Park
Fund Fund District Development
ASSETS
Cash and investments 1,859,364 $ 10,989,797 $ 3,165 $ 104,975 $ Accounts receivable, net 220,989 728,773 12,164 -
Notes receivable - - - -
Prepaid items - - - -
Land held for resale - - - -
Total assets $ 11,718,570 2,080,353 $ 15,329 $ 104,975 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 1,156,563 $ 5,031 $ - $ - $
Accrued payroll - - - -
Due to other funds - - - -
Deposits payable - - - -
Unearned revenues - - - -
Total liabilities 5,031 1,156,563 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 525,312 - -
Total deferred inflows of resources 525,312 - - -
Fund Balances:

Nonspendable - - - -
Restricted 923,790 11,188,227 15,329 104,975
Unassigned - - - -
Total fund balances 11,188,227 923,790 15,329 104,975
Total liabilities, deferred inflows of
resources, and fund balances $ 2,080,353 $ 11,718,570 $ 15,329 $ 104,975 (Continued)
Special Revenue
Non-Major Governmental Funds
City of Madera
Combining Balance Sheet
June 30, 2021
128
Parking Federal Aid Street Landscape
District Urban Construction Assessment
ASSETS
Cash and investments $ 114,326 $ 2,522 $ - $ 453,143
Accounts receivable, net 13,099 1,495,177 2,435,533 8,062 Notes receivable - - - -
Prepaid items - - 3,956 -
Land held for resale - - - -
Total assets $ 127,425 $ 1,497,699 $ 2,439,489 $ 461,205

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable $ 1,100 $ 134,581 $ 1,711,600 $ 634
Accrued payroll 64 - - -
Due to other funds 1,215,767 - 259,544 -
Deposits payable - - - -
Unearned revenues - - - -
Total liabilities 1,164 1,350,348 1,971,144 634

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 432,331 1,640,000 -
Total deferred inflows of resources - 432,331 1,640,000 - Fund Balances:

Nonspendable - - 3,956 -
Restricted 126,261 - - 460,571
Unassigned - (284,980) (1,175,611) -
Total fund balances 126,261 (284,980) (1,171,655) 460,571 Total liabilities deferred inflows of
resources, and fund balances $ 127,425 $ 1,497,699 $ 2,439,489 $ 461,205 (Continued)
Special Revenue
City of Madera
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
129
Supplemental
Law Intermodal Economic Residential
Enforcement Building Development Rehab
ASSETS
Cash and investments 184,335 $ - $ 1,423,588 $ 810,399 $ Accounts receivable, net 189,570 54,294 133,498 -
Notes receivable - - - 7,996,577
Prepaid items - - - -
Land held for resale - - - -
Total assets $ 54,294 373,905 $ 1,557,086 $ 8,806,976 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable 18,463 $ 1,360 $ 156,500 $ 8,063 $
Accrued payroll 4,885 129 - 546
Due to other funds - 26,824 - -
Deposits payable - - - -
Unearned revenues - - - -
Total liabilities 28,313 23,348 156,500 8,609

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 130,833 - - -
Total deferred inflows of resources - 130,833 - -
Fund Balances:

Nonspendable - - - -
Restricted 219,724 25,981 1,400,586 8,798,367
Unassigned - - - -
Total fund balances 25,981 219,724 1,400,586 8,798,367
Total liabilities, deferred inflows of
resources, and fund balances $ 373,905 $ 54,294 $ 1,557,086 $ 8,806,976 (Continued)
Special Revenue
City of Madera
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
130
Capital Projects
Low and
Moderate Community Total Other
Income Facilities Streets and Governmental
Housing Districts Roads Funds
ASSETS
Cash and investments $ 271,404 $ 553,106 $ 214,923 $ 16,985,047 Accounts receivable, net 12,316 6,238 5,309,713 -
Notes receivable 7,000 - 8,003,577 -
Prepaid items 54 - - 4,010
Land held for resale 670,000 - - 670,000
Total assets $ 960,774 $ 559,344 $ 214,923 $ 30,972,347

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ 210,895 $ 3,404,790
Accrued payroll - - - 5,624
Due to other funds - - 1,502,135 -
Deposits payable 74 - - 74
Unearned revenues - 113,851 - 113,851
Total liabilities 74 113,851 210,895 5,026,474

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 2,728,476 -
Total deferred inflows of resources - - 2,728,476 -
Fund Balances:

Nonspendable 54 - - 4,010
Restricted 960,646 445,493 4,028 24,673,978
Unassigned - - (1,460,591) -
Total fund balances 960,700 445,493 4,028 23,217,397
Total liabilities, deferred inflows of
resources, and fund balances $ 960,774 $ 559,344 $ 214,923 $ 30,972,347 (Concluded)
City of Madera
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
June 30, 2021
Special Revenue
131
Special Measure "T" Business
Gas Tax Sales Tax Improvement Park
Fund Fund District Development
REVENUES:

Property taxes - $ - $ - $ - $
Other taxes - - - -
Investment income (loss) - 58,216 - -
Fines and forfeitures - - - -
Intergovernmental 2,563,059 3,277,492 - -
Charges for services - - 22,331 -
Miscellaneous - - - -
Total revenues 3,335,708 2,563,059 22,331 -
EXPENDITURES:

Current:

General government - - 17,512 -
Public protection - - - -
Public ways and facilities 792,688 9,426 - -
Community development - - - -
Capital outlay 1,790,412 937,601 - -
Total expenditures 947,027 2,583,100 17,512 -

REVENUES OVER
(UNDER) EXPENDITURES 2,388,681 (20,041) 4,819 -
OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - - -
Transfers in - - - -
Transfers out (1,831,898) (875,238) - -
Total other financing sources (uses) (1,831,898) (875,238) - - NET CHANGES IN FUND BALANCES (1,851,939) 1,513,443 4,819 - FUND BALANCES:

Beginning of year 2,775,729 9,674,784 10,510 104,975
End of year $ 923,790 $ 11,188,227 $ 15,329 $ 104,975
(Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of Madera
For the Year Ended June 30, 2021
Non-Major Governmental Funds
132
Parking Federal Aid Street Landscape
District Urban Construction Assessment
REVENUES:

Property taxes $ - $ - $ - $ -
Other taxes - - - 404,868
Investment income (loss) - - - -
Fines and forfeitures 28,539 - - -
Intergovernmental 1,592,570 - 966,120 -
Charges for services 19,051 - - -
Miscellaneous - - - -
Total revenues 47,590 1,592,570 966,120 404,868
EXPENDITURES:

Current:

General government 27,803 - - -
Public protection - - - -
Public ways and facilities - 39,441 230,677 359,932
Community development - - - -
Capital outlay - 878,554 1,888,794 -
Total expenditures 27,803 917,995 2,119,471 359,932

REVENUES OVER
(UNDER) EXPENDITURES 19,787 674,575 (1,153,351) 44,936
OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - - -
Transfers in - - - -
Transfers out (9,559) - (512,000) (2,546)
Total other financing sources (uses) (9,559) - (512,000) (2,546) NET CHANGES IN FUND BALANCES 10,228 674,575 (1,665,351) 42,390 FUND BALANCES:

Beginning of year 116,033 (959,555) 493,696 418,181
End of year $ 126,261 $ (284,980) $ (1,171,655) $ 460,571 (Continued)
City of Madera
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2021
Special Revenue
133
Supplemental
Law Intermodal Economic Residential
Enforcement Building Development Rehab
REVENUES:

Property taxes $ - $ - $ - $ -
Other taxes - - - -
Investment income (loss) 1,124 - 12,194 375,943
Fines and forfeitures - - - -
Intergovernmental 225,505 60,919 - 1,483
Charges for services - 50,051 - -
Miscellaneous - - 10,790 23,331
Total revenues 226,629 110,970 22,984 400,757
EXPENDITURES:

Current:

General government - 39,496 - -
Public protection 222,974 - - -
Public ways and facilities - 62,172 - -
Community development - - 24,722 217,476
Capital outlay - - 431,500 -
Total expenditures 222,974 101,668 456,222 217,476

REVENUES OVER
(UNDER) EXPENDITURES 3,655 9,302 (433,238) 183,281
OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 421,792 -
Transfers in - - - -
Transfers out - (11,693) - -
Total other financing sources (uses) - (11,693) 421,792 - NET CHANGES IN FUND BALANCES 3,655 (2,391) (11,446) 183,281 FUND BALANCES:

Beginning of year 216,069 28,372 1,412,032 8,615,086
End of year $ 219,724 $ 25,981 $ 1,400,586 $ 8,798,367
(Continued)
Special Revenue
City of Madera
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2021
134
Capital Projects
Low and
Moderate Community Total Other
Income Facilities Streets and Governmental
Housing Districts Roads Funds
REVENUES:

Property taxes $ - $ 449,008 $ - $ 449,008
Other taxes - - - 404,868
Investment income (loss) 1,897 3,526 - 452,900
Fines and forfeitures - - - 28,539
Intergovernmental - - 8,687,148 -
Charges for services - - - 91,433
Miscellaneous 139,435 - - 173,556
Total revenues 141,332 452,534 10,287,452 -
EXPENDITURES:

Current:

General government - 6,173 - 90,984
Public protection - - - 222,974
Public ways and facilities - - 1,494,336 -
Community development 947,229 1,003,500 - 2,192,927
Capital outlay - - 5,926,861 -
Total expenditures 947,229 6,173 1,003,500 9,928,082

REVENUES OVER
(UNDER) EXPENDITURES (805,897) 446,361 (1,003,500) 359,370 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - - 421,792
Transfers in - 1,003,500 - 1,003,500
Transfers out - (310,247) (3,553,181) -
Total other financing sources (uses) - (310,247) 1,003,500 (2,127,889) NET CHANGES IN FUND BALANCES (805,897) 136,114 (1,768,519) - FUND BALANCES:

Beginning of year 1,766,597 309,379 4,028 24,985,916
End of year $ 960,700 $ 445,493 $ 4,028 $ 23,217,397
(Concluded)
City of Madera
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2021
Special Revenue
135
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 2,970,571 $ 2,970,571 $ 2,563,059 $ (407,512) $ Total revenues 2,970,571 2,970,571 2,563,059 (407,512)
EXPENDITURES:

Current:

Public ways and facilities 690,715 690,715 792,688 (101,973) Capital outlay 516,013 5,169,331 1,790,412 3,378,919
Total expenditures 5,860,046 1,206,728 2,583,100 3,276,946 REVENUES OVER (UNDER) EXPENDITURES (2,889,475) 1,763,843 (20,041) 2,869,434 OTHER FINANCING SOURCES (USES):

Transfers out (1,977,822) (1,977,822) (1,831,898) 145,924 Total other financing sources (uses) (1,977,822) (1,977,822) (1,831,898) 145,924 Net change in fund balance $ (4,867,297) (213,979) $ (1,851,939) 3,015,358 $ FUND BALANCE:

Beginning of year 2,775,729
End of year $ 923,790
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Special Gas Tax Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
136
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ - $ 58,216 $ 58,216 $
Intergovernmental 2,970,571 2,970,571 3,277,492 306,921 Total revenues 2,970,571 2,970,571 3,335,708 365,137
EXPENDITURES:

Current:

Public ways and facilities - 9,426 9,426 -
Capital outlay 516,013 5,159,905 937,601 4,222,304
Total expenditures 5,169,331 516,013 947,027 4,222,304
REVENUES OVER (UNDER) EXPENDITURES (2,198,760) 2,454,558 2,388,681 4,587,441 OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (2,668,537) (2,668,537) (875,238) 1,793,299 Total other financing sources (uses) (2,668,537) (2,668,537) (875,238) 1,793,299 Net change in fund balance $ (4,867,297) (213,979) $ 1,513,443 6,380,740 $ FUND BALANCE:

Beginning of year 9,674,784
End of year $ 11,188,227
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Measure "T" Fund
For the Year Ended June 30, 2021
Budgeted Amounts
137
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 22,832 $ 22,832 $ 22,331 $ (501) $ Total revenues 22,832 22,832 22,331 (501)
EXPENDITURES:

Current:

General government 22,547 22,547 17,512 5,035
Total expenditures 22,547 22,547 17,512 5,035
Net change in fund balance $ 285 285 $ 4,819 4,534 $
FUND BALANCE:

Beginning of year 10,510
End of year $ 15,329
Budgeted Amounts
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Business Improvement District Special Revenue Fund
For the Year Ended June 30, 2021
138
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
Capital outlay - $ 209,517 $ - $ 209,517 $
Total expenditures 209,517 - - 209,517
REVENUES OVER (UNDER) EXPENDITURES (209,517) - - 209,517 Net change in fund balance $ (209,517) - $ - 209,517 $
FUND BALANCE:

Beginning of year 104,975
End of year $ 104,975
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Park Development Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
139
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines and forfeitures 18,000 $ 18,000 $ 28,539 $ 10,539 $ Charges for services 24,000 24,000 19,051 (4,949)
Total revenues 42,000 42,000 47,590 5,590
EXPENDITURES:

Current:

General government 38,041 38,041 27,803 10,238
Total expenditures 38,041 38,041 27,803 10,238
REVENUES OVER (UNDER) EXPENDITURES 3,959 3,959 19,787 15,828 OTHER FINANCING SOURCES (USES):

Transfers out (8,014) (8,014) (9,559) (1,545)
Total other financing sources (uses) (8,014) (8,014) (9,559) (1,545) Net change in fund balance $ (4,055) (4,055) $ 10,228 14,283 $ FUND BALANCE:

Beginning of year 116,033
End of year $ 126,261
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Parking District Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
140
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 1,040,397 $ 1,040,397 $ 1,592,570 $ 552,173 $ Total revenues 1,040,397 1,040,397 1,592,570 552,173
EXPENDITURES:

Current:

Public ways and facilities 20,082 391,547 39,441 352,106 Capital outlay 268,600 2,637,020 878,554 1,758,466
Total expenditures 3,028,567 288,682 917,995 2,110,572
Net change in fund balance $ (1,988,170) 751,715 $ 674,575 2,662,745 $ FUND BALANCE:

Beginning of year (959,555)
End of year $ (284,980)
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Federal Aid Urban Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
141
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 788,396 $ 788,396 $ 966,120 $ 177,724 $ Total revenues 788,396 788,396 966,120 177,724
EXPENDITURES:

Current:

Public ways and facilities 42,524 138,748 230,677 (91,929) Capital outlay 331,645 4,287,793 1,888,794 2,398,999
Total expenditures 4,426,541 374,169 2,119,471 2,307,070 REVENUES OVER (UNDER) EXPENDITURES (3,638,145) 414,227 (1,153,351) 2,484,794 OTHER FINANCING SOURCES (USES):

Transfers out (512,000) (512,000) (512,000) -
Total other financing sources (uses) (512,000) (512,000) (512,000) - Net change in fund balance $ (4,150,145) (97,773) $ (1,665,351) 2,484,794 $ FUND BALANCE:

Beginning of year 493,696
End of year $ (1,171,655)
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Street Construction Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
142
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Other taxes 364,639 $ 364,639 $ 404,868 $ 40,229 $
Total revenues 364,639 364,639 404,868 40,229
EXPENDITURES:

Current:

Public ways and facilities 327,332 327,332 359,932 (32,600) Total expenditures 327,332 327,332 359,932 (32,600)
REVENUES OVER (UNDER) EXPENDITURES 37,307 37,307 44,936 7,629 OTHER FINANCING SOURCES (USES):

Transfers out - - (2,546) (2,546)
Total other financing sources (uses) - - (2,546) (2,546) Net change in fund balance $ 37,307 37,307 $ 42,390 5,083 $ FUND BALANCE:

Beginning of year 418,181
End of year $ 460,571
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Landscape Assessment Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
143
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 412 $ 412 $ 1,124 $ 712 $
Intergovernmental 100,000 337,653 225,505 (112,148)
Total revenues 338,065 100,412 226,629 (111,436)
EXPENDITURES:

Current:

Public protection 274,224 511,877 222,974 288,903
Total expenditures 511,877 274,224 222,974 288,903
Net change in fund balance $ (173,812) (173,812) $ 3,655 177,467 $ FUND BALANCE:

Beginning of year 216,069
End of year $ 219,724
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
144
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 168,997 $ 168,997 $ 60,919 $ (108,078) $ Charges for services 27,000 27,000 50,051 23,051
Total revenues 195,997 195,997 110,970 (85,027)
EXPENDITURES:

Current:

General government 38,070 38,670 39,496 (826)
Public ways and facilities 70,454 69,854 62,172 7,682
Total expenditures 108,524 108,524 101,668 6,856
REVENUES OVER (UNDER) EXPENDITURES 87,473 87,473 9,302 (78,171) OTHER FINANCING SOURCES (USES):

Transfers out (244) (244) (11,693) (11,449)
Total other financing sources (uses) (244) (244) (11,693) (11,449) Net change in fund balance $ 87,229 87,229 $ (2,391) (89,620) $ FUND BALANCE:

Beginning of year 28,372
End of year $ 25,981
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Intermodal Building Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
145
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 2,494 $ 2,494 $ 12,194 $ 9,700 $ Miscellaneous - - 10,790 10,790
Total revenues 2,494 2,494 22,984 20,490
EXPENDITURES:

Current:

Community development 16,312 16,312 24,722 (8,410)
Capital outlay - 439,372 431,500 7,872
Total expenditures 455,684 16,312 456,222 (538)
REVENUES OVER (UNDER) EXPENDITURES (453,190) (13,818) (433,238) 19,952 OTHER FINANCING SOURCES (USES):

Proceeds from sale of property - - 421,792 421,792
Transfers in - 285,000 - (285,000)
Total other financing sources (uses) 285,000 - 421,792 136,792 Net change in fund balance $ (168,190) (13,818) $ (11,446) 156,744 $ FUND BALANCE:

Beginning of year 1,412,032
End of year $ 1,400,586
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Economic Development Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
146
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 445 $ 445 $ 375,943 $ 375,498 $ Intergovernmental 578,900 578,900 1,483 (577,417)
Miscellaneous 22,500 22,500 23,331 831
Total revenues 601,845 601,845 400,757 (201,088)
EXPENDITURES:

Current:

Community development 483,241 483,241 217,476 265,765
Total expenditures 483,241 483,241 217,476 265,765
Net change in fund balance $ 118,604 118,604 $ 183,281 64,677 $ FUND BALANCE:

Beginning of year 8,615,086
End of year $ 8,798,367
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Residential Rehab Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
147
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 14,821 $ 14,821 $ 1,897 $ (12,924) $ Miscellaneous 36,246 36,246 139,435 103,189
Total revenues 53,167 53,167 141,332 88,165
EXPENDITURES:

Current:

Community development 26,515 244,124 947,229 (703,105)
Total expenditures 244,124 26,515 947,229 (703,105)
REVENUES OVER (UNDER) EXPENDITURES (190,957) 26,652 (805,897) (614,940) Net change in fund balance $ (190,957) 26,652 $ (805,897) (614,940) $ FUND BALANCE:

Beginning of year 1,766,597
End of year $ 960,700
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Low and Moderate Income Housing Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
148
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 367,010 $ 367,010 $ 449,008 $ 81,998 $
Investment income (loss) 828 828 3,526 2,698
Total revenues 367,838 367,838 452,534 84,696
EXPENDITURES:

Current:

General government 6,921 6,921 6,173 748
Total expenditures 6,921 6,921 6,173 748
REVENUES OVER (UNDER) EXPENDITURES 360,917 360,917 446,361 85,444 OTHER FINANCING SOURCES (USES):

Transfers out (310,247) (310,247) (310,247) -
Total other financing sources (uses) (310,247) (310,247) (310,247) - Net change in fund balance $ 50,670 50,670 $ 136,114 85,444 $ FUND BALANCE:

Beginning of year 309,379
End of year $ 445,493
City of Madera
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Community Facilities District Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
149
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150
Non-Major Enterprise Funds
Local Transit Fund - This fund is used to account for the activities of the government's public transit operations.

Golf Course Fund - This fund is used to account for the activities of the government's golf course operations.

Airport Fund - This fund is used to account for the activities of the government's airport operations. 151
Local Golf
Transit Course Airport
Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments $ - $ 1,748,717 - $ $ 1,748,717
Accounts receivable, net 631,686 31,632 71,272 734,590
Prepaid items 952 - 7,785 8,737
Total current assets 632,638 31,632 1,827,774 2,492,044 Noncurrent assets:

Capital assets:

Non-depreciable 320,500 146,933 3,204,012 3,671,445
Depreciable, net 8,154,646 1,881,928 7,863,570 17,900,144 Total capital assets 8,475,146 2,028,861 11,067,582 21,571,589 Total noncurrent assets 8,475,146 2,028,861 11,067,582 21,571,589 Total assets 9,107,784 2,060,493 12,895,356 24,063,633

DEFERRED OUTFLOW OF RESOURCES
Related to pensions 110,680 - 49,951 160,631
Total deferred outflow of resources 110,680 - 49,951 160,631

LIABILITIES
Current liabilities:

Accounts payable 15,697 - 8,192 23,889
Accrued payroll 11,746 - 1,574 13,320
Due to other funds 529,788 499,594 1,029,382 -
Interest payable - 4,169 1,083 5,252
Deposits payable - - 14,175 14,175
Compensated absences - due within one year 14,997 - 8,197 23,194 Long-term debt - due within one year 306,200 - 25,939 332,139 Total current liabilities 572,228 809,963 59,160 1,441,351 Noncurrent liabilities:

Advances from other funds - 61,201 - 61,201
Aggregate net pension liability - 469,936 211,699 681,635 Compensated absences - due in more than one year - 12,369 - 12,369 Long term debt - due in more than one year 477,900 - 27,181 505,081 Total noncurrent liabilities 482,305 539,101 238,880 1,260,286 Total liabilities 1,054,533 1,349,064 298,040 2,701,637

DEFERRED INFLOWS OF RESOURCES
Related to service concession arrangement - 16,670 - 16,670 Related to pensions 32,377 - 17,781 50,158
Total deferred inflows of resources 32,377 16,670 17,781 66,828

NET POSITION
Net investment in capital assets 8,475,146 1,244,761 11,014,462 20,734,369 Unrestricted (deficit) (343,592) (550,002) 1,615,024 721,430 Total net position $ 694,759 8,131,554 $ 12,629,486 $ 21,455,799 $ City of Madera
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2021
152
Local Golf
Transit Course Airport
Fund Fund Fund Total
OPERATING REVENUES:

Charges for services $ 1,980,522 $ 78,053 $ 537,172 $ 2,595,747 Other 16,750 - 4,632 21,382
Total operating revenues 1,997,272 78,053 541,804 2,617,129 OPERATING EXPENSES:

Salaries and benefits 302,793 145,557 - 448,350
General and administrative 1,606,667 64,084 292,303 1,963,054 Supplies and miscellaneous 164,794 - 16,160 180,954
Utilities - - 32,167 32,167
Depreciation 424,873 299,490 - 724,363
Total operating expenses 2,499,127 64,084 785,677 3,348,888 OPERATING INCOME (LOSS) (501,855) 13,969 (243,873) (731,759) NONOPERATING REVENUES (EXPENSES):

Investment income 768 - 13,429 14,197
Property taxes - 140,016 - 140,016
Capital grants 334,894 - 80,436 415,330
Gain (loss) on disposal of property 135,300 - 135,300 - Interest expense - (30,551) (1,696) (32,247)
Total nonoperating revenues (expenses) 470,962 (30,551) 232,185 672,596

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (30,893) (16,582) (11,688) (59,163)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 82,613 - - 82,613
Transfers in 298,804 - 298,804 -
Transfers out (4,522) - (18,458) (22,980)
Total capital contributions and transfers 78,091 298,804 (18,458) 358,437 Changes in net position 47,198 282,222 (30,146) 299,274 NET POSITION:

Beginning of year 8,084,356 412,537 12,659,632 21,156,525 End of year $ 8,131,554 $ 694,759 $ 12,629,486 $ 21,455,799 City of Madera
Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds
For the Year Ended June 30, 2021
153
Local Golf
Transit Course Airport
Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 3,103,542 $ 71,164 $ 551,115 $ 3,725,821 Cash payments to suppliers for goods and services (2,061,370) (64,084) (375,558) (2,501,012) Cash payments to employees for services (285,606) (144,292) - (429,898) Receipts from other operating revenues 16,750 - 4,632 21,382 Net cash provided by operating activities 773,316 7,080 35,897 816,293

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Property taxes - 140,016 - 140,016
Advances from other funds (24,480) - (24,480) -
Due to other funds (909,304) 47,324 (861,980) -
Transfers from other funds 298,804 - 298,804 -
Transfers to other funds (4,522) (18,458) - (22,980)
Net cash provided by
noncapital financing activities (913,826) 321,648 121,558 (470,620)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Capital grants 334,894 - 80,436 415,330
Acquisition of capital assets (195,152) (60,067) - (255,219) Principal payment of long-term debt (296,600) - (296,600) - Interest paid on debt (32,128) - (613) (32,741)
Net cash (used in) capital and
related financing activities 139,742 (328,728) 19,756 (169,230) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest from investments 768 - 13,429 14,197
Net cash provided by investing activities 768 - 13,429 14,197 Net change in cash and cash equivalents - 190,640 - 190,640 CASH AND CASH EQUIVALENTS:

Beginning of year - 1,558,077 - 1,558,077
End of year $ - $ 1,748,717 - $ $ 1,748,717
(Continued)
City of Madera
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the Year Ended June 30, 2021
154
Local Golf
Transit Course Airport
Fund Fund Fund Total

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ (501,855) $ 13,969 $ (243,873) $ (731,759) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 424,873 299,490 - 724,363
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 1,123,020 (6,889) 13,268 1,129,399 Prepaid items (926) - (6,123) (7,049)
Deferred outflows - pension related 2,828 - 1,044 3,872 Accounts payable (288,983) (28,805) - (317,788)
Salaries payable 6,659 - (1,024) 5,635
Deposits payable - - 675 675
Compensated absences 6,402 - 766 7,168
Aggregate net pension liability 4,700 - 1,734 6,434
Deferred inflows - pension related (3,402) - (1,255) (4,657) Total adjustments 1,275,171 (6,889) 279,770 1,548,052
Net cash provided by operating activities $ 773,316 $ 7,080 $ 35,897 $ 816,293 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Contributed property, plant and equipment $ 82,613 $ - $ - $ 82,613 Total noncash capital and related financing activities $ 82,613 $ - $ - $ 82,613 (Concluded)
For the Year Ended June 30, 2021
City of Madera
Combining Statement of Cash Flows (Continued)
Non-Major Enterprise Funds
155
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156
Internal Service Funds
Fleet Maintenance Fund - This fund is used to account for the accumulation and allocation of costs associated with the maintenance of the City fleet of vehicles.

Facilities Maintenance Fund - This fund is used to account for the accumulation and allocation of costs associated with the maintenance of the City Hall building and other City buildings.

Technology Fund - This fund is used to account for the costs associated with automation maintenance of the City's various computers, servers and interdepartmental electronic communications. 157
Fleet Facilities
Maintenance Maintenance Technology Total
ASSETS
Current assets:

Cash and investments $ 2,331,536 $ 1,460,674 $ 861,814 $ 4,654,024 Accounts receivable, net 105,442 - - 105,442
Prepaid items 32 53 37,743 37,828
Total current assets 2,437,010 1,460,727 899,557 4,797,294 Noncurrent assets:

Capital assets:

Depreciable, net 3,143,719 6,210 257,461 3,407,390
Total capital assets 3,143,719 6,210 257,461 3,407,390
Total noncurrent assets 3,143,719 6,210 257,461 3,407,390 Total assets 5,580,729 1,466,937 1,157,018 8,204,684

DEFERRED OUTFLOW OF RESOURCES
Related to pensions 187,187 299,997 170,461 657,645
Total deferred outflow of resources 187,187 299,997 170,461 657,645

LIABILITIES
Current liabilities:

Accounts payable 26,363 46,033 124,771 197,167
Accrued payroll 5,629 15,350 8,954 29,933
Compensated absences - due within one year 21,271 39,333 26,200 86,804 Total current liabilities 53,263 100,716 159,925 313,904 Noncurrent liabilities:

Aggregate net pension liability 1,327,000 806,861 777,209 2,911,070 Compensated absences - due in more than one year 60,570 16,685 24,436 101,691 Total noncurrent liabilities 823,546 1,387,570 801,645 3,012,761 Total liabilities 876,809 1,488,286 961,570 3,326,665

DEFERRED INFLOWS OF RESOURCES
Related to pensions 54,085 93,272 66,002 213,359
Total deferred inflows of resources 54,085 93,272 66,002 213,359

NET POSITION
Investment in capital assets 3,143,719 6,210 257,461 3,407,390 Unrestricted (deficit) 1,693,303 179,166 42,446 1,914,915 Total net position $ 185,376 4,837,022 $ 299,907 $ 5,322,305 $ City of Madera
Combining Statement of Net Position
All Internal Service Funds
June 30, 2021
158
Fleet Facilities
Maintenance Maintenance Technology Total
OPERATING REVENUES:

Charges for services $ 1,766,343 $ 2,772,804 $ 1,931,605 $ 6,470,752 Other 43,629 3,434 - 47,063
Total operating revenues 1,809,972 2,776,238 1,931,605 6,517,815 OPERATING EXPENSES:

Salaries and benefits 412,882 1,008,823 607,733 2,029,438 General and administrative 183,474 208,885 345,760 738,119 Supplies and miscellaneous 120,146 81,242 954 202,342
Parts and supplies - - 179,538 179,538
Utilities 1,162 160,853 10,572 172,587
Depreciation 501,046 1,263 86,786 589,095
Total operating expenses 1,218,710 1,461,066 1,231,343 3,911,119 OPERATING INCOME (LOSS) 591,262 1,315,172 700,262 2,606,696 NONOPERATING REVENUES (EXPENSES):

Capital grants 99,363 - - 99,363
Total nonoperating revenues (expenses) 99,363 - - 99,363 INCOME (LOSS) BEFORE TRANSFERS 690,625 1,315,172 700,262 2,706,059 TRANSFERS:

Capital contributions 1,891 - - 1,891
Transfers in - - - -
Transfers out (57,724) (76,880) (9,899) (144,503)
Total transfers (55,833) (76,880) (9,899) (142,612)
Changes in net position 634,792 1,238,292 690,363 2,563,447 NET POSITION:

Beginning of year 4,202,230 (1,052,916) (390,456) 2,758,858 End of year $ 4,837,022 $ 185,376 $ 299,907 $ 5,322,305 City of Madera
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2021
159
Fleet Facilities
Maintenance Maintenance Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 1,664,616 $ 2,772,804 $ 1,931,605 $ 6,369,025 Cash payments to suppliers for goods and services (334,754) (481,478) (415,135) (1,231,367) Cash payments to employees for services (400,025) (973,461) (602,000) (1,975,486) Receipts from other operating activities 43,629 3,434 - 47,063 Net cash provided by (used in) operating activities 973,466 1,321,299 914,470 3,209,235

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers to other funds (57,724) (76,880) (9,899) (144,503) Net cash provided by
noncapital financing activities (57,724) (76,880) (9,899) (144,503)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (463,783) (110,671) - (574,454) Net cash (used in) capital and
related financing activities (364,420) (110,671) - (475,091) Net change in cash and cash equivalents 551,322 1,244,419 793,900 2,589,641 CASH AND CASH EQUIVALENTS:

Beginning of year 1,780,214 216,255 67,914 2,064,383
End of year $ 2,331,536 $ 1,460,674 $ 861,814 $ 4,654,024 (Continued)
City of Madera
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2021
160
Fleet Facilities
Maintenance Maintenance Technology Total

RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ 591,262 $ 1,315,172 $ 700,262 $ 2,606,696 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 501,046 1,263 86,786 589,095
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net (101,727) - (101,727) -
Prepaid items - - 5,510 5,510
Deferred outflows -pension related 4,514 9,142 5,951 19,607 Accounts payable (29,972) (30,498) 116,179 55,709
Accrued payroll 578 (200) (5,118) (4,740)
Compensated absences 5,693 22,222 2,168 30,083
Aggregate net pension liability 7,500 15,191 9,888 32,579 Deferred inflows - pension related (5,428) (10,993) (7,156) (23,577) Total adjustments 382,204 6,127 214,208 602,539
Net cash provided by (used in) operating activities $ 973,466 $ 1,321,299 $ 914,470 $ 3,209,235 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Contributed property, plant and equipment $ - 1,891 $ - $ 1 $ ,891 Total noncash capital and related financing activities $ 1,891 $ - $ - $ 1,891 (Concluded)
All Internal Service Funds
For the Year Ended June 30, 2021
City of Madera
Combining Statement of Cash Flows (Continued)
161
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162
The Custodial Funds are used to account for assets held by the City in a custodial capacity for individuals, private organizations, other governments, and/or other funds. The City maintains the following Custodial Funds for the purposes indicated:

Custodial Funds
General Deposit Fund - This fund is used to account for all money collected to pay for certain deposits.

Community Facilities Districts - This fund is used to account for the collection of assessments from property owners and for the remittance of such assessments to bondholders as required by the Improvement Bond Act of 1915 and related California State statutes for the Community Facilities District No. 2006-1.
163
General Community
Deposit Facilities
Fund Districts Total
ASSETS
Cash and investments $ 1,557,668 $ 335,429 $ 1,893,097
Accounts receivable, net - 1,936 1,936
Prepaid items - 875 875
Restricted cash and investments with fiscal agents - 47,031 47,031 Total assets 1,557,668 385,271 1,942,939

LIABILITIES
Accounts payable $ 17,930 $ - $ 17,930
Deposits payable 1,539,738 1,539,738 -
Total liabilities 1,557,668 1,557,668 -

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 385,271 385,271 Total Net Position $ - $ 385,271 $ 385,271
City of Madera
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2021
164
General Community
Deposit Facilities
Fund Districts Total
ADDITIONS:

Special assessments for other governments - $ 178,165 $ 178,165 $ Investment Income 1,021 - 1,021
Total additions 179,186 - 179,186
DEDUCTIONS:

Administration 7,865 - 7,865
Payments on conduit bonds - principal - 79,232 79,232
Payments on conduit bonds - interest - 87,352 87,352
Total deductions 174,449 - 174,449
Changes in net position 4,737 - 4,737
NET POSITION:

Beginning of year, as restated - 380,534 380,534
End of year $ 385,271 - $ 385,271 $
City of Madera
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2021
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166

STATISTICAL SECTION
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168

CONTENTS PAGE
1 Net Position by Component 170
2 Changes in Net Position 172
3 Fund Balances of Governmental Funds 176
4 Changes in Fund Balances of Governmental Funds 178
5 Governmental Activities Tax Revenues by Source 181
6 Assessed Value of Taxable Property 182
7 Property Tax Levies and Collections 184
8 Direct and Overlapping Property Tax Rates 185
9 Top Ten Principal Property Taxpayers 186
10 Ratios of Outstanding Debt by Type 187
11 Ratios of General Bonded Debt Outstanding 188
12 Direct and Overlapping Governmental Activities Debt 189 13 Legal Debt Margin Information 190
14 Pledged Revenue Coverage 192
15 Demographic and Economic Statistics 194
16 Principal Employers 195
17 Full Time Equivalent City Government Employees by Function/Program 197 18 Operating Indicators by Function/Program 198
19 Capital Asset Statistics by Function/Program 200
Sources: Unless otherwise noted, the information in these schedules is derived from the City's annual comprehensive financial reports for the relevant year

CITY OF MADERA - STATISTICAL SECTION
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

Revenue Capacity - These schedules contain information to help the reader assess the City of Madera's most significant local revenue source, the property tax.

Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City'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 City's financial activities take place.

Financial Trends - These schedules contain trend information to help the reader understand how the City of Madera's financial performance and well being have changed over time This part of the City of Madera'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 says about the City's overall financial health
169
2021 2020 2019 2018 2017
Governmental activities
Net invement in capital assets, $ 178,947,614 $ 160,970,918 $ 172,189,172 $ 176,114,816 $ 178,119,000 Restricted 46,349,016 55,679,367 44,311,906 37,033,179 34,863,951 Unrestricted (9,774,183) (10,495,207) (12,968,431) (10,128,387) (9,560,807) Total governmental activities net position $ 215,522,447 $ 206,155,078 $ 203,532,647 $ 203,019,608 $ 203,422,144 Business type activities
Net invement in capital assets $ 65,967,085 $ 64,433,636 $ 61,048,060 $ 58,537,120 $ 58,792,617 Restricted 963,474 1,166,101 4,940,553 1,125,151 1,076,451 Unrestricted 32,493,629 26,306,961 17,336,248 15,846,498 13,966,875 Total business type activities net position $ 99,424,188 $ 91,906,698 $ 83,324,861 $ 75,508,769 $ 73,835,943 Primary government
Net invement in capital assets $ 244,914,699 $ 225,404,554 $ 233,237,232 $ 234,651,936 $ 236,911,617 Restricted 47,312,490 56,845,468 49,252,459 38,158,330 35,940,402 Unrestricted 22,719,446 15,811,754 4,367,817 5,718,111 4,406,068 Total primary government net position $ 314,946,635 $ 298,061,776 $ 286,857,508 $ 278,528,377 $ 277,258,087 City of Madera
Schedule 1
Net Position by Component
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
170
2016 2015 2014 2013 2012
Governmental activities
Net investment in capital assets $ 178,483,617 $ 182,403,676 $ 185,644,703 $ 182,862,086 $ 137,089,854 Restricted 32,193,071 32,671,232 32,451,846 24,794,707 13,273,859 Unrestricted (11,207,039) (14,435,936) 12,294,870 10,951,919 25,594,770 Total governmental activities net position $ 199,469,649 $ 200,638,972 $ 230,391,419 $ 218,608,712 $ 175,958,483 Business type activities
Net investment in capital assets $ 57,639,498 $ 58,455,927 $ 60,056,090 $ 60,768,756 $ 68,322,670 Restricted - - - 9,718,860 -
Unrestricted 17,152,594 15,542,964 19,739,870 19,386,182 20,277,451 Total business type activities net position $ 74,792,092 $ 73,998,891 $ 79,795,960 $ 80,154,938 $ 98,318,981 Primary government
Net investment in capital assets $ 236,123,115 $ 240,859,603 $ 245,700,793 $ 243,630,842 $ 205,412,524 Restricted 32,193,071 32,671,232 32,451,846 24,794,707 22,992,719 Unrestricted 5,945,555 1,107,028 32,034,740 30,338,101 45,872,221 Total primary government net position $ 274,261,741 $ 274,637,863 $ 310,187,379 $ 298,763,650 $ 274,277,464 City of Madera
Schedule 1
Net Position by Component (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
171
2021 2020 2019 2018 2017
Expenses
Governmental activities:

General government $ 9,782,970 $ 9,574,371 $ 9,703,723 $ 8,697,525 $ 7,692,256 Public protection 18,826,073 20,182,145 18,983,486 18,425,675 12,903,321 Social services 133,639 422,270 330,498 346,863 303,015 Public ways and facilities 3,659,085 7,369,948 5,478,070 5,081,612 4,607,237 Culture and recreation 5,993,699 4,056,088 4,525,133 4,744,555 4,421,827 Community development 3,509,000 4,654,520 4,492,799 4,022,163 3,029,515 Interest on long-term debt 692,894 509,977 210,504 74,490 110,856 Depreciation (unallocated) - - - - -
Total governmental activities expenses 42,597,360 46,769,319 43,724,213 41,392,883 33,068,027 Business type activities:

Water 7,427,430 8,295,137 7,654,315 9,262,549 10,066,546 Sewer 9,216,976 10,038,430 9,924,665 9,854,304 8,758,885 Solid waste 5,758,119 5,875,225 6,056,309 5,811,095 6,305,944 Drainage operations 943,353 1,110,864 1,149,676 887,698 956,287 Local transit 2,499,127 2,403,789 2,321,063 2,166,293 2,184,533 Golf course 94,635 103,861 120,763 199,012 115,882
Airport 787,373 801,043 842,652 1,163,134 893,106
Total business type activities expenses 26,727,013 28,628,349 28,069,443 29,344,085 29,281,183 Total primary government expenses $ 75,397,668 69,324,373 $ 71,793,656 $ 70,736,968 $ 62,349,210 $ Program Revenues
Governmental activities:

Program revenues:

General government 1,174,107 $ 242,424 $ 6,223,401 $ 5,727,717 $ 5,526,628 $ Public protection 1,906,334 2,492,680 1,498,740 1,268,539 1,160,181 Social services - 42,549 45,159 87,568 82,637
Public ways and facilities 10,910,045 9,246,144 10,385,688 6,320,845 7,164,876 Community development 5,645,305 2,866,097 3,434,002 2,831,560 3,085,754 Culture and recreation 1,048,539 696,197 941,359 837,220 934,173 Total governmental activities program revenues 20,684,330 15,586,091 22,528,349 17,073,449 17,954,249 Business type activities:

Program revenues:

Water 13,538,219 12,414,215 12,323,836 11,932,955 9,232,389 Sewer 11,352,608 10,797,565 10,352,115 8,791,285 8,108,977 Solid waste 5,890,825 5,982,010 5,890,085 5,872,152 5,889,675 Drainage operations 1,070,277 869,502 938,423 692,227 706,793 Local transit 2,398,029 5,873,660 4,316,816 2,263,648 2,297,400 Golf course 78,053 101,734 95,889 100,469 93,797
Airport 617,608 581,739 579,745 1,038,032 1,810,619
Total business type activities program revenues 34,945,619 36,620,425 34,496,909 30,690,768 28,139,650 Total primary government program revenues $ 52,206,516 55,629,949 $ 57,025,258 $ 47,764,217 $ 46,093,899 $ Net (Expense)/Revenue
Governmental activities (21,913,030) $ (31,183,228) $ (21,195,864) $ (24,319,434) $ (15,113,778) $ Business type activities 8,218,606 7,992,076 6,427,466 1,346,683 (1,141,533) Total primary government net expense $ (13,694,424) $ (23,191,152) $ (14,768,398) $ (22,972,751) $ (16,255,311) City of Madera
Schedule 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
172
2016 2015 2014 2013 2012
Expenses
Governmental activities:

General government $ 8,890,092 $ 11,483,880 $ 11,482,393 $ 11,946,360 $ 8,275,715 Public protection 14,722,091 13,759,629 13,358,929 13,096,060 12,384,317 Social services 182,286 331,774 517,537 686,717 577,321 Public ways and facilities 6,852,731 3,695,605 3,766,236 2,940,005 2,350,315 Culture and recreation 4,451,155 4,335,983 3,814,936 3,749,071 2,693,874 Community development 5,249,438 5,812,948 5,478,644 5,639,070 5,879,206 Interest on long-term debt 280,037 258,764 269,845 291,000 2,851,745 Depreciation (unallocated) - - - 8,627,095 -
Total governmental activities expenses 40,627,830 39,678,583 38,688,520 38,348,283 43,639,588 Business type activities:

Water 5,590,810 5,668,873 4,788,350 5,212,633 7,826,911 Sewer 8,476,744 7,573,475 7,318,263 7,281,744 7,414,003 Solid waste 4,936,291 4,675,782 4,326,840 5,524,217 6,207,826 Drainage operations 1,024,498 900,903 933,506 895,238 904,659 Local transit 2,051,814 1,996,563 1,827,194 1,792,905 1,641,113 Golf course 74,596 122,102 66,651 130,394 229,294
Airport 852,560 871,796 687,228 697,826 690,753
Total business type activities expenses 23,007,313 21,809,494 19,948,032 21,534,957 24,914,559 Total primary government expenses $ 61,488,077 63,635,143 $ 58,636,552 $ 59,883,240 $ 68,554,147 $ Program Revenues
Governmental activities:

Program revenues:

General government 6,996,758 $ 8,763,455 $ 7,894,884 $ 8,555,784 $ 911,568 $ Public protection 1,414,790 1,558,094 1,820,803 1,783,858 2,033,459 Social ervices 69,314 80,730 111,223 116,756 426,912
Public ways and facilities 7,865,237 7,432,036 14,609,971 10,477,637 3,876,380 Community development 3,833,881 5,481,186 9,596,690 7,308,357 5,949,796 Culture and recreation 1,529,999 996,481 836,826 606,757 548,135 Total governmental activities program revenues 21,709,979 24,311,982 34,870,397 28,849,149 13,746,250 Business type activities:

Program revenues:

Water 7,312,514 5,616,869 5,759,100 5,534,033 5,121,649 Sewer 7,469,167 6,474,652 6,275,667 5,875,561 6,160,478 Solid waste 5,695,241 5,697,468 5,550,361 6,493,343 6,840,962 Drainage operations 955,602 686,328 793,149 664,900 640,695 Local transit 2,811,840 1,870,304 2,191,542 2,259,213 2,111,263 Golf course 96,542 117,562 122,494 111,362 34,000
Airport 551,005 647,283 1,341,754 837,714 1,026,107
Total business type activities program revenues 24,891,911 21,110,466 22,034,067 21,776,126 21,935,154 Total primary government program revenues $ 45,422,448 46,601,890 $ 56,904,464 $ 50,625,275 $ 35,681,404 $ Net (Expense)/Revenue
Governmental activities (18,917,851) $ (15,366,601) $ (3,818,123) $ (9,499,134) $ (29,893,338) $ Business type activities 1,884,598 (699,028) 2,086,035 241,169 (2,979,405) Total primary government net expense $ (17,033,253) $ (16,065,629) $ (1,732,088) $ (9,257,965) $ (32,872,743) City of Madera
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
173
2021 2020 2019 2018 2017
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 11,020,353 $ 11,045,364 $ 4,332,639 $ 3,824,185 $ 4,040,067 Sales and use taxes 16,894,337 15,227,811 13,399,196 12,923,918 9,112,909 Franchises taxes 721,028 688,563 649,666 666,238 649,415 Other taxes 1,813,979 2,019,087 1,964,472 1,707,452 1,694,786 Motor vehicle fees - - - - -
Investment earnings (97,360) 1,247,564 1,910,967 265,581 203,973 Miscellaneous 317,971 1,205,394 829,050 1,147,727 343,287 Gain (loss) on sale of capital assets 35,469 (42,920) 43,791 - 31,374 Transfers 574,622 352,225 275,116 374,407 172,913
Special items - Transfers of assets - 2,062,571 - - -
Extraordinary items - RDA dissolution - - - - -
Total governmental activities 31,280,399 33,805,659 23,404,897 20,909,508 16,248,724 Business type activities:

Property taxes 237,264 228,943 209,374 182,390 171,878
Investment earnings 340,816 548,322 407,450 68,049 120,594 Miscellaneous 113,658 78,165 76,531 3,956 26,004
Gain (loss) on sale of capital assets 135,300 86,556 - 12,990 39,821 Transfers (574,622) (352,225) (275,116) (372,671) (172,913) Total business type activities 252,416 589,761 418,239 (105,286) 185,384 Total primary government $ 34,395,420 31,532,815 $ 23,823,136 $ 20,804,222 $ 16,434,108 $ Change in Net Position
Governmental activities 9,367,369 $ 2,622,431 $ 2,209,033 $ (3,409,926) $ 1,134,946 $ Business type activities 8,471,022 8,581,837 6,845,705 1,241,397 (956,149) Total primary government $ 11,204,268 17,838,391 $ 9,054,738 $ (2,168,529) $ 178,797 $ City of Madera
Fiscal Years
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
174
2016 2015 2014 2013 2012
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 3,571,669 $ 2,837,432 $ 2,943,796 $ 2,757,456 $ 7,295,050 Sales and use taxes 6,506,004 5,638,847 5,472,283 4,573,272 15,573,874 Transient occupancy taxes 678,438 612,474 591,116 584,160 558,779 Other taxes 2,172,574 2,035,238 1,821,326 1,899,648 6,009,672 Motor vehicle fees - - - 3,750,000 -
Investment earnings 603,795 309,988 795,691 1,216,644 1,112,556 Miscellaneous 580,398 577,213 1,071,486 841,992 (70,336) Gain (loss) on sale of capital assets 16,304 26,983 75,607 14,184 - Transfers 1,718,751 1,065,193 2,538,648 1,305,047 892,807 Special items - Transfers of assets - - - - -
Extraordinary items - RDA dissolution - - - (4,737,825) - Total governmental activities 15,847,933 13,103,368 15,309,953 13,192,403 30,384,577 Business type activities:

Other taxes 58,333 70,353 61,049 98,923 -
Investment earnings 210,257 262,948 19,076 19,315 70,281 Miscellaneous 34,976 28,170 25,478 35,542 430,375
Gain (loss) on sale of capital assets 4,250 14,476 (11,968) (52,915) - Transfers (1,718,751) (1,065,193) (2,538,648) (1,305,047) (892,807) Total business type activities (1,410,935) (689,246) (2,445,013) (1,204,182) (392,151) Total primary government $ 12,414,122 14,436,998 $ 12,864,940 $ 11,988,221 $ 29,992,426 $ Change in Net Position
Governmental activities (3,069,918) $ (2,263,233) $ 11,491,830 $ 3,693,269 $ 491,239 $ Business type activities 473,663 (1,388,274) (358,978) (963,013) (3,371,556) Total primary government $ (3,651,507) (2,596,255) $ 11,132,852 $ 2,730,256 $ (2,880,317) $ City of Madera
Fiscal Years
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
175
2021 2020 2019 2018 2017
General fund
Nonspendable $ 139,843 $ 249,637 $ 202,901 $ 601,522 $ 272,102 Restricted 401,700 - 4,934,403 - -
Committed 11,194,964 10,292,405 10,483,246 11,574,005 - Assigned 13,906,278 6,763,704 5,528,814 1,199,518 1,199,518 Unassigned 5,482,689 7,398,714 3,049,282 4,673,303 13,968,482 Total general fund 30,723,774 25,106,160 24,198,646 18,048,348 15,440,102 All other governmental funds
Nonspendable 4,010 3,815 27 42 -
Restricted 45,692,871 55,277,667 39,377,503 35,986,212 33,857,600 Committed - - - -
Assigned - - - - -
Unassigned (1,460,591) (959,555) - - -
Total all other governmental fund 44,236,290 54,321,927 39,377,530 35,986,254 33,857,600 TOTAL FUND BALANCES $ 74,960,064 $ 79,428,087 $ 63,576,176 $ 54,034,602 $ 49,297,702 Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Madera
Schedule 3
Fund Balances of Governmental Funds
176
2016 2015 2014 2013 2012
General fund
Nonspendable $ 368,959 $ 258,252 $ 282,184 $ 362,753 $ 49,121 Restricted 646,823 - 87,453 1,554,240 -
Committed - - - 952,768 -
Assigned 1,199,518 727,159 1,199,518 1,174,374 86,003
Unassigned 12,879,473 12,326,175 11,280,658 8,651,615 7,833,114 Total general fund 14,447,950 13,958,409 12,849,813 10,188,742 10,475,246 All other governmental funds
Nonspendable 8,547,157 - - - 7,280
Restricted 23,974,874 32,277,375 32,615,786 25,059,067 11,719,619 Committed - - - 6,146,083 -
Assigned - - - 40,025 -
Unassigned (231,803) (221,039) 42,897 (148,056) 12,912,675 Total all other governmental fund 32,290,228 32,056,336 32,658,683 24,911,011 30,825,682 TOTAL FUND BALANCES $ 46,738,178 $ 46,014,745 $ 45,508,496 $ 35,099,753 $ 41,300,928 Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Madera
Schedule 3
Fund Balances of Governmental Funds (Continued)
177
2021 2020 2019 2018 2017
Revenues
Taxes $ 4,331,022 $ 4,332,639 $ 3,825,921 $ 4,054,503 $ 4,054,503 Sales and used taxes 16,894,337 13,399,196 13,262,908 8,741,373 8,741,373 Other taxes 1,921,747 2,081,211 1,707,452 1,698,487 1,698,487 Use of money and property 323,569 2,078,944 392,428 358,735 358,735 Franchises 721,028 649,666 666,238 649,415 649,415
Licenses, permits and fees 1,555,955 1,322,830 1,049,103 701,825 701,825 Fines 452,319 591,298 588,584 750,388 750,388
Intergovernmental 17,641,730 16,380,444 11,781,034 12,654,660 12,654,660 Charges for services 5,118,683 3,322,989 3,457,257 3,497,588 3,497,588 Other revenue 578,896 1,048,977 924,918 632,560 632,560 Donations - - - - -
Total revenues 49,539,286 45,208,194 37,655,843 33,739,534 33,739,534 Expenditures
General government 2,691,729 3,628,480 3,075,710 2,106,580 1,796,055 Public protection 19,854,358 18,393,027 17,196,886 16,932,579 14,934,669 Social services 131,881 198,360 192,633 309,121 405,251 Public ways and facilities 3,319,019 5,957,037 4,233,896 3,476,106 3,101,070 Community development 3,130,348 5,839,428 3,429,815 3,800,416 3,831,163 Culture and recreation 2,796,274 3,300,189 4,006,826 3,598,837 3,106,938 Capital outlay 18,538,217 13,834,273 6,802,125 2,519,381 3,143,357 Debt service:

Principal 401,700 559,403 633,222 1,452,775 568,464
Interest 730,344 351,820 52,341 75,660 113,860
Total expenditures 55,239,701 48,416,186 39,623,454 34,271,455 31,000,827 Culture and recreation
Excess of revenues over (under) expenditures (5,700,415) (3,207,992) (1,967,611) (531,921) 2,738,707 Other financing sources (uses)
Proceeds from sale of property 513,267 679,580 46,518 41,691 37,027 Proceeds from issuance of long-term debt 19,432,000 - 4,005,000 895,900 - Premium on bond issuance - 648,613 - - -
Cost of issuance (84,752) - 153,613 - -
Transfers in 15,443,432 5,103,755 2,768,183 5,005,541 4,504,230 Transfers out (15,773,066) (4,384,630) (2,992,087) (5,284,157) (4,812,845) Total other financing sources (uses) 1,232,392 19,697,194 4,629,840 658,975 (271,588) Net change in fund balances $ (4,468,023) $ 16,489,202 $ 2,662,229 $ 127,054 $ 2,467,119 Debt service as a percentage of non-capital
expenditures 3.1% 2.6% 2.1% 4.8% 2.4%
Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Madera
Schedule 4
Changes in Fund Balances of Governmental Funds
178
2016 2015 2014 2013 2011
Revenues
Taxes $ 2,563,059 $ 3,087,520 $ 2,869,599 $ 2,581,565 $ 7,139,383 Sales and used taxes 6,506,004 5,638,847 5,539,847 4,505,707 5,341,362 Other taxes 6,506,004 5,638,847 1,842,002 1,872,250 11,788,596 Use of money and property 935,358 985,169 961,315 1,366,160 1,035,809 Franchises 2,141,433 2,041,961 591,116 584,160 619,343
Licenses, permits and fees 678,438 612,474 395,730 313,382 246,139 Fines 646,800 595,255 874,861 1,028,320 904,913
Intergovernmental 767,778 463,853 28,437,678 18,255,556 8,516,744 Charges for services 16,326,841 15,934,329 5,775,536 5,489,685 5,364,830 Other revenue 3,240,452 6,041,361 1,453,736 612,804 1,170,483 Donations - - - 411,950 -
Total revenues 40,312,167 41,039,616 48,741,420 36,609,589 42,539,552 Expenditures
General government 5,123,445 2,959,739 4,797,564 4,844,346 8,387,319 Public protection 14,621,471 13,616,969 13,177,569 12,829,516 12,551,085 Social services 357,699 330,062 510,579 473,128 864,358 Public ways and facilities 3,834,908 2,532,178 3,012,275 2,673,089 3,446,831 Community development 3,425,208 3,392,870 2,814,466 2,724,788 2,610,744 Culture and recreation 5,219,577 5,380,767 4,681,217 5,044,076 7,225,112 Capital outlay 7,073,119 5,255,764 10,925,198 6,931,137 10,999,374 Debt service:

Principal 977,512 425,970 415,920 439,424 1,449,446
Interest 266,431 259,255 270,255 291,385 2,822,090
Total expenditures 38,703,326 36,349,618 40,605,043 36,250,889 50,356,359 Excess of revenues over (under) expenditures 1,608,841 4,689,998 8,136,377 358,700 (7,816,807) Other financing sources (uses)
Proceeds from sale of property - 9,969 - - 640,000
Proceeds from issuance of long-term debt - - - - -
Premium on bond issuance 1,540,065 157,755 - - -
Cost of issuance - - - - -
Transfers in 5,557,426 7,289,955 6,338,959 5,044,924 14,603,608 Transfers out (5,111,740) (6,109,973) (4,357,470) (3,787,978) (13,945,846) Total other financing sources (uses) 2,730,016 603,441 1,981,489 1,256,946 1,297,762 Net change in fund balances $ 4,338,857 $ 5,293,439 $ 10,117,866 $ 1,615,646 $ (6,519,045) Debt service as a percentage of non-capital
expenditures 3.9% 2.2% 2.3% 2.5% 10.9%
Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Madera
Schedule 4
Changes in Fund Balances of Governmental Funds (Continued) 179
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180
Sources of Business Franchise Property Sales Transient Gas Tax Revenues Licenses Fees Tax 1 Tax 3 Occupancy Tax 2 TOTAL 2020-2021 452,319 $ 1,555,955 $ 4,331,022 $ 1,921,747 $ 886,017 $ 2,563,059 $ 11,710,119 $ 2019-2020 688,563 1,378,494 4,613,254 15,227,811 804,286 7,623,871 30,336,279 2018-2019 1,322,830 649,666 4,332,639 13,399,196 903,124 7,623,871 28,231,326 2017-2018 1,049,103 666,238 3,467,163 12,934,817 - 3,425,547 21,542,868 2016-2017 701,825 649,415 3,696,995 8,741,373 - - 13,789,608 2015-2016 646,800 678,438 3,115,740 6,506,004 - 3,215,791 14,162,773 2014-2015 595,255 612,474 3,087,520 5,638,847 - - 9,934,096 2013-2014 395,730 591,116 2,869,599 5,539,847 - 4,007,477 13,403,769 2012-2013 313,382 584,160 2,581,565 4,505,707 - 4,679,304 12,664,118 2011-2012 344,732 558,779 2,333,736 5,384,826 - 1,655,468 10,277,541 NOTES:
1) Property tax amounts include state reimbursement of homeowners property tax relief and real property transfer tax and property tax in lieu of MVLF. Property tax for fiscal years 2012 and earlier included redevelopment tax increment. 2) Increase in Gas Tax from FY 2010 onward was due to the "Fuel Tax Swap of 2010". This was the addition of Section 2103 fund allocation from a new motor vehicle excise tax that replace the allocation from Prop. 42 sales tax on gasoline.

Figures for fiscal years 2010 and earlier did not include the Prop. 42 revenue. 3) The City passed "Measure L" allowing an additional increase of 0.75% in the local sale tax rate. This local measure became effective on October 1, 2012 and ended on March 31, 2018 when it was replaced by "Measure V" allowing an increase 1% in the local sales tax rate. Measure V becomes effective April 1, 2018 and will sunset on March 31, 2025 City of Madera
Schedule 5
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years (modified accrual basis of accounting) 181
CATEGORY 2021 2020 2019 2018 2017
Residential $ 2,335,164,803 $ 2,201,293,176 $ 2,035,513,239 $ 1,917,149,489 $ 1,824,835,555 Commercial 483,155,413 443,426,571 429,900,137 419,282,129 403,687,826 Industrial 174,322,830 178,171,356 179,040,074 172,661,353 166,063,864 Agriculture 13,017,642 13,457,474 12,920,915 5,840,462 5,275,944 Dry Farm 15,306,770 15,019,028 15,391,780 14,096,409 13,830,501 Government 2,036,417 2,054,539 - 6,069 5,950
Institutional 1,920,464 1,282,549 1,674,829 2,113,776 1,295,250 Irrigated 1,680,888 1,635,256 1,603,053 1,598,326 1,566,070 Cross Reference 40,913,367 37,692,391 39,817,937 36,669,788 35,511,414 Vacant Land 196,572,803 183,027,173 219,593,087 175,896,575 166,553,864 SBE Non-Unitary 548,402 625,460 625,460 625,460 743,768 Unsecured 307,490,035 287,932,288 280,734,337 237,615,373 221,973,452 Unknown 638,191 628,316 1,236,714 4,352,697 4,025,707
TOTALS 3,572,768,025 3,366,245,577 3,218,051,562 2,987,907,906 2,845,369,165 Total Direct Rate 0.13147 0.13198 0.13281 0.13369 0.13243 NOTES:

City of Madera
Schedule 6
Assessed Value of Taxable Property
Last Ten Fiscal Years
Fiscal Years
In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. * Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Exempt values are not included in Total
Source: HdL Coren Cone 182
CATEGORY 2016 2015 2014* 2013 2012
Residential $ 1,739,590,175 $ 1,629,686,371 $ 1,518,325,305 $ 1,452,100,000 $ 1,447,378,861 Commercial 386,226,705 376,032,631 366,862,480 367,484,877 367,845,387 Industrial 178,416,598 170,784,960 164,018,245 165,058,550 168,028,586 Agriculture 5,153,044 5,042,110 4,791,797 4,700,012 4,610,026 Dry Farm 11,764,375 12,516,645 12,649,078 10,825,312 10,523,021 Government 5,861 5,747 5,722 5,610 -
Institutional 1,558,852 1,348,373 1,242,996 1,178,843 1,046,426 Irrigated 1,541,526 1,510,496 1,502,446 1,465,896 1,492,264 Cross Reference 34,716,877 28,515,201 23,735,117 20,865,776 20,767,878 Vacant Land 155,926,515 153,947,112 158,636,497 159,890,090 167,773,016 SBE Non-Unitary 743,768 743,768 743,768 769,547 769,547 Unsecured 201,164,923 200,566,825 191,093,988 182,827,178 165,151,264 Unknown 3,939,930 3,939,713 3,540,012 3,313,737 3,304,242 TOTALS 2,720,749,149 2,584,639,952 2,447,147,451 2,370,485,428 2,358,690,518 Total Direct Rate 0.13255 0.1328 0.13242 0.38898 0.39528 NOTES:

City of Madera
Schedule 6
Assessed Value of Taxable Property (Continued)
Last Ten Fiscal Years
Fiscal Years
In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. * Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Exempt values are not included in Total
Source: HdL Coren Cone 183
Fiscal Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years 1 Amount of Levy 2021 $ 3,591,118 $ 3,582,748 99.77% $ 3,582,748 - $ 100.42% 2020 3,409,931 3,394,991 99.56% 4,184 3,399,175 99.15%
2019 3,229,350 3,127,793 96.86% 23,314 3,151,107 97.58% 2018 3,128,370 3,093,867 98.90% 1,000 3,094,867 98.93%
2017 2,933,663 2,917,792 99.46% (10,357) 2,907,435 99.11% 2016 N/A N/A 0.00% - - 0.00%
2015 N/A 1 N/A 0.00% - - 0.00%
2014 N/A N/A 0.00% - - 0.00%
2013 N/A N/A 0.00% - - 0.00%
2012 N/A N/A 0.00% - - 0.00%
2011 9,911,568 8,996,236 90.77% 55,685 9,051,922 91.33% NOTES:

N/A - Information not available
Fiscal Year of the Levy Total Collections to Date
1) Delinquent tax collections are recorded in the current levy year and the County does not give the detail as to the levy year for delinquent tax collections. Delinquent tax collections do not include interest and penalties.

City of Madera
Schedule 7
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
184
Fiscal Year
Ended June 30, City of Madera
Madera Unified
School District
State Center
Community
College County-wide Total
2021 0.0% 12.5% 1.8% 100.0% 114.3%
2020 0.0% 16.5% 2.6% 100.0% 119.1%
2019 0.0% 9.7% 2.3% 100.0% 112.0%
2018 0.0% 10.3% 2.6% 100.0% 112.9%
2017 0.0% 11.4% 0.8% 100.0% 112.2%
2016 0.0% 12.8% 0.8% 100.0% 113.6%
2015 0.0% 7.3% 0.9% 100.0% 108.2%
2014 0.0% 7.9% 1.0% 100.0% 108.8%
2013 0.0% 7.6% 0.9% 100.0% 108.5%
2012 0.0% 7.7% 0.8% 100.0% 108.5%
Note: The basis for the tax rates is $100 per assessed valuation.

Source: Madera County Auditor-Controller Tax Rate Book
City of Madera
Schedule 8
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Source: HdL Coren Cone 185
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Rank Value Value Rank Value Value
John Hancock Life Insurance Co. 1 51,012,621 $ 1.40%
David L and Partrica R Berry 2 24,065,633 0.66% 1 28,737,579 1.21% Ready Roastt Nut Company 3 21,663,487 0.59%
Sealed Air Corporation 4 20,898,893 0.57% 4 18,935,498 0.80% Newman Development Group 5 19,487,944 0.54%
OldcastelPrecast Inc 6 18,637,227 0.51% 6 14,907,956 0.63% Crossroads Madera California LB1 LLC 7 18,570,628 0.51% The Almond Company 8 18,066,830 0.50%
Lowes Home Centers LLC 9 16,138,420 0.44% 5 16,282,059
Yosemite Point Partnership 10 15,062,351 0.41% 7 14,714,597 0.62% Advanced Drainage System 2 22,049,408 0.93%
Berry & Berry, Inc. 3 19,111,642 0.81%
Eurodrip USA, Inc. 8 14,474,972 0.61%
DMP Development Corporation 9 13,793,092 0.58%
BFP Partnership 10 12,364,632 0.52%
Top Ten Totals $ 223,604,034 6.14% $ 175,371,435 7.40%
CITY TOTALS $ 3,641,653,022 $ 2,371,484,516
2020-2021 2011-2012
City of Madera
Schedule 9
Top Ten Principal Property Taxpayers
Fiscal Year 2021 and Ten Years Prior
Source: HdL Coren Cone 186
General Special Total Percentage of
Fiscal Obligation Redevelopment Assessment Loans Capital Primary Personal Per Year Bonds Bonds b Bonds Payable Lease Government Income a Capita a 2021 $ 32,970,000 - $ - $ 525,400 $ 19,432,000 $ 52,927,400 $ 4.95% 806$ 2020 34,295,000 - 633,600 - 19,595,500 54,524,100 5.10% 830 2019 39,862,859 - 738,900 - 492,602 41,094,361 3.84% 628 2018 43,765,850 - 863,554 - 1,023,325 45,652,729 4.59% 687 2017 45,039,358 - 60,088 - 2,425,766 47,525,212 4.95% 718 2016 46,207,821 - 2,683,119 98,022 3,002,145 51,991,107 5.67% 787 2015 47,346,304 - 2,722,525 661,052 1,874,496 52,604,377 5.82% 803 2014 48,439,787 - 2,756,931 842,091 1,964,615 54,003,424 6.03% 857 2013 49,488,270 - 2,786,337 1,053,926 2,179,997 55,508,530 6.20% 881 2012 50,567,725 - 2,825,000 2,461,155 - 55,853,880 6.32% 886 NOTES:
a)
b) As of February 1, 2012 all redevelopment agencies in California ceased to exist per AB X1 26. The Madera Redevelopment Agencies' obligations were transferred to the Successor Agency.

City of Madera
Schedule 10
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years

GOVERNMENTAL ACTIVITIES
See Schedule 13 Demographic and Economic Statistics for personal income and population data 187
Percentage
General Special of Taxable
Fiscal Obligation Redevelopment Assessment Assessed Per Year Bonds Bonds c Bonds Total Property Values a Capita b 2021 $ 32,970,000 - $ - $ 32,970,000 $ 0.98% 502 $
2020 - 34,295,000 - 34,295,000 1.07% 524 $
2019 - 39,862,859 - 39,862,859 1.33% 600 $
2018 - 43,794,788 - 43,794,788 1.54% 661 $
2017 - 45,039,358 - 45,039,358 1.66% 682 $
2016 - 46,231,429 2,683,119 48,914,548 1.89% 747 $
2015 - 47,379,250 2,722,525 50,101,775 2.05% 795 $
2014 - 48,459,969 2,756,931 51,216,900 2.16% 813 $
2013 - 49,455,270 2,786,337 52,241,607 2.21% 829 $
2012 - 50,567,725 2,825,000 53,392,725 2.26% 854 $
NOTES:
a) Assessed Value and Actual Value of Taxable Property - provided by HdL, Coren & Cone provided data b) Demographic and Economic Statistics for personal income and population data - Schedule 13 c) As of February 1, 2012 all redevelopment agencies in California ceased to exist per AB X1 26. The Madera Redevelopment Agencies' obligations were transferred to the Successor Agency.

City of Madera
Schedule 11
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years

GOVERNMENTAL ACTIVITIES
188
2020-21 Assessed Valuation: $3,572,633,614
Debt
Outstanding % City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 Applicable 1 Debt as of 6/30/21 State Center Community College District 343,015,000 $ 3.744% 12,842,482 $ Madera Unified School District 166,836,933 49.141% 81,985,337 $ City of Madera Community Facilities District No. 2006-1 2,241,106 100.000% 2,241,106 $ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 97,068,925 $
DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:

Madera County General Fund Obligations 58,254,562 22.186% 12,924,357 Madera County Board of Education General Fund Obligtions 20,608,877 22.186% 4,572,285 Madera Unified School District Certificates of Participation 87,095,000 49.141% 42,799,354 City of Madera 24,491,500 100.000% 24,491,500
TOTAL DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 84,787,497 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 32,970,000 98.874% $ 32,598,758 TOTAL DIRECT DEBT $ 24,491,500
TOTAL OVERLAPPING DEBT $ 189,963,679
COMBINED TOTAL DEBT $ 214,455,179
NOTES:

City of Madera
Schedule 12
Direct and Overlapping Governmental Activities Debt
As of June 30, 2021
2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. (1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.

Source: MuniServices, LLC 189
Legal Debt Margin Calculation FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Assessed value $ 3,750,525,788 $ 3,572,633,614 $ 3,366,111,166 $ 3,214,555,536 $ 2,984,863,745 Debt limit (15% of assessed value) 562,578,868 535,895,042 504,916,675 482,183,330 447,729,562 Debt applicable to limit:

General obligation bonds - - - - -
Less: Amount set aside for repayment
of general
obligation debt - - - - -
Total net debt applicable to limit - - - - -
Legal Debt Margin 562,578,868 535,895,042 504,916,675 482,183,330 447,729,562 Total debt applicable to the limit as a
percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00%
NOTES:

Last Ten Fiscal Years
Under State Finance Law, the City's outstanding general obligation debt should not exceed 15% of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

City of Madera
Schedule 13
Legal Debt Margin Information
190
Legal Debt Margin Calculation FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Assessed value $ 2,843,541,362 $ 2,717,869,926 $ 2,580,951,334 $ 2,443,191,890 $ 2,366,225,200 Debt limit (15% of assessed value) 426,531,204 407,680,489 387,142,700 366,478,784 354,933,780 Debt applicable to limit:

General obligation bonds - - - - -
Less: Amount set aside for repayment
of general
obligation debt - - - - -
Total net debt applicable to limit - - - - -
Legal Debt Margin 426,531,204 407,680,489 387,142,700 366,478,784 354,933,780 Total debt applicable to the limit as a
percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00%
NOTES:

Last Ten Fiscal Years
Under State Finance Law, the City's outstanding general obligation debt should not exceed 15% of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

City of Madera
Schedule 13
Legal Debt Margin Information (Continued)
191
Net Revenue
Fiscal Gross Available for
Year Revenues Debt Service Principal Interest Coverage
2021 23,085,235 $ 11,537,418 $ 1,200,000 $ 950,160 $ 5.37 2020 23,244,181 10,309,898 1,155,000 992,895 4.80
2019 21,434,207 6,380,941 1,120,000 1,034,335 2.96
2018 20,664,801 4,378,989 1,075,000 1,074,110 2.04
2017 17,181,561 1,139,743 1,040,000 1,112,590 0.53
2016 14,673,722 3,883,912 70,000 275,697 11.24
2015 - - - - -
2014 - - - - -
2013 - - - - -
2012 - - - - -
Net Revenue
Fiscal Gross Available for
Year Revenues Debt Service Principal Interest Coverage
2021 12,511,993 $ 6,379,309 $ 409,781 $ 225,466 $ 10.04 2020 12,428,666 6,697,361 374,080 40,336 16
2019 - - - - -
2018 - - - - -
2017 - - - - -
2016 - - - - -
2015 - - - - -
2014 - - - - -
2013 - - - - -
2012 - - - - -
City of Madera
Schedule 14
Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service
Debt Service
2015 Water and Wastewater Revenue Bonds
2019 Water Refunding Bonds
192
Net Revenue
Fiscal Gross Available for
Year Revenues Debt Service Principal Interest Coverage
2021 10,573,242 $ 5,158,109 $ 331,996 $ 196,593 $ 9.76
2020 10,823,426 4,645,738 322,295 206,439 8.79
2019 9,776,777 986,633 312,877 215,998 1.87
2018 8,788,389 266,204 303,735 225,278 0.50
2017 8,042,174 613,008 294,860 234,287 1.16
2016 7,407,933 788,484 286,244 243,032 1.49
2015 5,621,814 984,022 277,879 251,522 1.86
2014 6,199,330 491,670 269,760 259,764 0.93
2013 6,487,017 961,248 261,877 267,765 1.81
2012 6,160,478 464,127 254,225 275,533 0.88
Special Net Revenue
Fiscal Assessment Available for
Year Collections Debt Service Principal Interest Coverage 2021 3,375,855 $ 3,056,710 $ 1,325,000 $ 1,516,309 $ 1.08 2020 2,790,658 598,095 1,215,000 1,563,337 0.22
2019 3,343,667 2,227,379 1,215,000 1,777,468 0.74
2018 3,686,763 2,917,577 1,295,000 2,269,784 0.82
2017 3,879,515 2,780,354 1,250,000 2,323,983 0.78
2016 1,951,305 209,883 1,190,000 2,374,693 0.06
2015 6,218,663 5,727,877 1,140,000 2,427,021 1.61
2014 724,744 444,534 1,095,000 2,474,236 0.12
2013 4,877,524 2,730,101 1,055,000 2,516,502 0.76
2012 4,961,314 4,310,943 1,015,000 2,555,078 1.21
Successor Agency 2018 Tax Allocation Bonds
Debt Service
City of Madera
Schedule 14
Pledged Revenue Coverage (Continued)
Last Ten Fiscal Years
2006 California Infrastructure and Economic Development Bank (CIEDB) Wastewater Loan Debt Service
193
Personal
Personal Per Capita School Unemployment
Year Population (1) Income Income (1) Enrollment Rate
2020 66,172 1,158,300,000 $ 17,504 $ 28.6 10.9%
2019 65,415 1,069,011,930 16,342 28.8 7.8%
2018 66,419 994,358,849 14,971 28.2 7.7%
2017 66,225 959,202,900 14,484 28.3 7.3%
2016 66,082 917,614,652 13,886 27.6 7.9%
2015 65,474 904,523,310 13,815 27.6 9.1%
2014 63,008 894,965,632 14,204 27.3 9.6%
2013 63,008 895,028,640 14,205 27.2 16.0%
2012 63,040 884,325,120 14,028 27.1 17.5%
2011 62,514 872,320,356 13,954 27.4 21.3%
NOTES:

Source:
www.cde.ca.gov
MuniServices, LLC
City of Madera
Schedule 15
Demographic and Economic Statistics
Last Ten Fiscal Years
Data provided by HdL, Coren & Cone
* Demographic data has a lag because of time to tabulate, 2020 data not available at this time 194
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Madera Unified School District 2319 1 35.63% 1800 40.53% County of Madera 1500 2 23.05% 1500 40.53%
Madera Community Hospital 936 3 14.38% 950 40.53%
Walmart 350 4 5.38% - N/A
Camerena Health 337 5 5.18% - N/A
City of Madera 310 6 4.76% 191 40.53%
Community Action Partnership Madera 234 7 3.60% - N/A
Vallarta Supermarket 200 8 3.07% - N/A
JBT Food Tech 165 9 2.53% - N/A
Lowe's 158 10 2.43% - N/A
6509 26.95% 4441 40.53%
44,980 34,400
Source: 2020-21 data based on City of Madera 2021-22 Budget Source: California Employment Department or employer provided ( - ) No data available.
2020-2021 2010-2011
Total City Employment
City of Madera
Schedule 16
Principal Employers
Fiscal Year 2021 and Ten Years Prior
Source: MuniServices LLC 195
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196
FUNCTION/PROGRAM 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General Government
City Attorney 0022222223
City Council 7777777777
City Manager 2.7 2.7 1.7 1.95 2.7 0.7 0.7 1 2 2
City Clerk 2222222222
Finance 27.7 24.89 24.73 23.73 24.5 24.03 24.45 25.48 25.28 26.78 Information Technology 4.17 4.17 4.25 4444444
Human Resources 4444444444
Community Development 14.89 18.97 19.59 21.46 21.86 22.13 21.38 21.27 24.8 26.13 Planning Commissioners 0000000000
Public Safety
Police Officers-Sworn 79 70.29 70.01 69.84 60 57.25 57 57 58 59 Other Full Time Employees 9.31 24.01 23.48 23.48 20 20 20 20 20.26 21.56 Public Works
Engineering 17.87 13.63 14.67 11.21 11.69 11.85 10.74 10.61 11.52 14.11 Maintenance 17.54 34.45 27.33 28.88 29.57 30.97 30.71 34.78 28.8 27.28 Transit Services 1.7 2.7 3.08 3.08 3.38 3.38 2.98 2.98 3.73 3.73 Airport 1.88 2.86 2.88 2.98 2.46 2.46 2.36 2.58 2.36 2.03 Solid Waste Disposal 0.65 1 6.48 8.88 9.02 7.77 6.69 3.38 5.48 1.99 Storm Drainage 4.1 5.45 5.74 4.54 5.19 4.89 5.89 5.45 6.2 6.77 Waster 18.44 22.34 23.08 25.18 20.66 18.66 16.81 14.74 16.76 17.96 Wastewater/Sewer 25.05 24.66 26.29 26.62 20.32 20.07 19.04 17.59 20.49 20.92 Waste Disposal Recycling 0 0 1 1.3 1.35 1.3 1.2 0 0 3.14 Successor Agency/RDA 0.5 1 1.8 2.3 2.3 2.3 2.59 2.62 2.62 3.5 Culture & Recreation 37.37 47.64 51.42 56.05 61.12 60.9 53.01 45.67 47.89 50.88 Total 275.87 313.76 322.53 330.48 315.12 307.66 294.55 284.15 295.19 307.78 City of Madera
Schedule 17
Full Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years (As of June 30)
Fiscal Years
197
FUNCTION/PROGRAM 2021 2020 2019 2018 2017
Police
Physical Arrests 1,789 1,829 2,381 1,585 1,014
Parking Violations 1,432 2,189 1,417 953 777
Traffic Violations 2,206 3,385 5,141 1,824 2,801
Community Development
Building Permits Issued 2,236 1,797 2,202 2,390 N/A
Building Inspections Performed 12,003 12,003 13,322 16,106 15,186 Planning Permits Issued 200 153 196 234 211
Public Services
Street Resurfacing (miles) - - - - -
Street Light Replacement a 86 115 64 92 206
Potholes Filled 2,864 2,012 2,341 2,703 2,542
Waste Water Average Daily
Treatment (millions of gallons) - - - - -
Transit Route (Service) Miles 258,599 317,504 352,476 140,033 366,788 Transit Passenger Count 54,683 95,326 108,535 143,746 142,991 Parks & Recreation
Sports Field Participation 360 1,802 1,701 N/A N/A
Community Center/Gym/Pool Participation 24,728 31,779 38,271 N/A N/A Other Participation 86,364 124,062 133,186 N/A N/A
NOTES:

N/A - Information not available
Fiscal Years
City of Madera
Schedule 18
Operating Indicators by Function/Program
Last Ten Fiscal Years (As of June 30)
Source: Various City Departments 198
FUNCTION/PROGRAM 2016 2015 2014 2013 2012
Police
Physical Arrests N/A N/A N/A N/A N/A
Parking Violations N/A N/A N/A N/A N/A
Traffic Violations N/A N/A N/A N/A N/A
Community Development
Building Permits Issued N/A N/A N/A N/A N/A
Building Inspections Performed N/A N/A N/A N/A N/A
Planning Permits Issued N/A N/A N/A N/A N/A
Public Services
Street Resurfacing (miles) N/A N/A N/A N/A N/A
Street Light Replacement a N/A N/A N/A N/A N/A
Potholes Filled N/A N/A N/A N/A N/A
Waste Water Average Daily
Treatment (millions of gallons) N/A N/A N/A N/A N/A
Transit Route (Service) Miles N/A N/A N/A N/A N/A
Transit Passenger Count N/A N/A N/A N/A N/A
Parks & Recreation
Sports Field Participation N/A N/A N/A N/A N/A
Community Center/Gym/Pool Participation N/A N/A N/A N/A N/A Other Participation N/A N/A N/A N/A N/A
NOTES:

Fiscal Years
City of Madera
Schedule 18
Operating Indicators by Function/Program
Last Ten Fiscal Years (As of June 30) (Continued)
Source: Various City Departments 199
FUNCTION/PROGRAM 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Police
Stations 1111111111
Patrol Units (marked) 41 41 35 35 34 N/A N/A N/A N/A N/A Motorcycle unit 5 4 4 5 3 N/A N/A N/A N/A N/A
K-9 unit 3 3 3 3 3 N/A N/A N/A N/A N/A
Streets
Streets (miles) 199 199 160 N/A N/A N/A N/A N/A N/A N/A Streetlights 3000 3000 3000 N/A N/A N/A N/A N/A N/A N/A Traffic Signals
CalTrans maintained 15 15 15 N/A N/A N/A N/A N/A N/A N/A City of Madera maintained 32 29 29 N/A N/A N/A N/A N/A N/A N/A Culture & Recreation
Total Park Acreage 159 159 151 N/A N/A N/A N/A N/A N/A N/A Parks 15 15 13 N/A N/A N/A N/A N/A N/A N/A
Baseball Fields 2 2 2 N/A N/A N/A N/A N/A N/A N/A
Softball Fields 9 9 9 N/A N/A N/A N/A N/A N/A N/A
Soccer Fields 7 7 7 N/A N/A N/A N/A N/A N/A N/A
Football Fields 0 0 0 N/A N/A N/A N/A N/A N/A N/A
Tennis Courts 0 0 0 N/A N/A N/A N/A N/A N/A N/A
Swimming Pools 3 3 3 N/A N/A N/A N/A N/A N/A N/A
Community Centers 3 3 3 N/A N/A N/A N/A N/A N/A N/A
Waste Water
Sanitary Sewers (miles) 375 375 408 0000000
Storm Sewers (miles) 0000000000
Treatment Capacity (millions of gallons/day) 0000000000 Transit Services
Minibuses
Fixed Route 13 13 13 13 13 N/A N/A N/A N/A N/A
Dial A Ride 6 6 6 6 6 N/A N/A N/A N/A N/A
Bus Shelters 80 80 80 80 80 N/A N/A N/A N/A N/A
NOTES:

N/A - Information not available
City of Madera
Schedule 19
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Source: Various City Departments 200

REPORT TO CITY COUNCIL
Approved by: Council Meeting of: August 17, 2022
_________________________________ Agenda Number: ___________ Wendy Silva, Director of Human Resources
_________________________________
Arnoldo Rodriguez, City Manager
SUBJECT:

Direction regarding annual commemoration of Juneteenth in the City of Madera RECOMMENDATION:

This item is being brought for consideration and direction at the request of the City Council SUMMARY:

Juneteenth is the oldest nationally celebrated commemoration of the ending of slavery in the United States and is observed on June 19 each year. The City Council (Council) has requested staff include an item on its agenda for discussion and direction regarding the City of Madera’s ongoing commemoration of Juneteenth.

DISCUSSION:

On June 19, 1865, African Americans enslaved in Galveston, Texas, first learned of their freedom, two and one-half years after the Emancipation Proclamation was issued by President Abraham Lincoln. Today, June 19 of each year is recognized as Juneteenth, commemorating African American freedom and emphasizes education and achievement. Juneteenth acknowledges a period in the United States’ (US) history that has shaped and continues to influence our society today, and supports assessment, self-improvement, and planning for the future to make significant and lasting improvements in our society.

In 2021, President Biden signed a bill that was passed by the US Congress to set aside June 19, also known as Juneteenth, as a US Federal holiday. Council has requested this item to discuss recognition of Juneteenth as an official holiday for the City of Madera.

The City currently recognizes the following days as holidays. On these days, City administrative offices are closed unless otherwise noted, and full-time employees receive a paid holiday as part of their negotiated benefits package. Part time employees are not eligible for paid holidays.

E-2
▪ New Year’s Day
▪ Martin Luther King’s birthday
▪ Presidents’ Day
▪ Good Friday (4 hours)
▪ Memorial Day
▪ Independence Day
▪ Labor Day
▪ Columbus Day
▪ Veterans’ Day
▪ Thanksgiving Day and the day after Thanksgiving
▪ Christmas Day
▪ Winter Holiday (4 hours on either Christmas Eve or New Year’s Eve, offices do not close) Of the holidays listed, all are recognized US Federal holidays except for Good Friday, the day after Thanksgiving, and the Winter Holiday. These non-Federal holidays have been negotiated over time with the City’s four recognized bargaining units.

At this time, with Juneteenth now recognized as a US Federal holiday, it is requested that Council provide direction on recognizing Juneteenth for the City of Madera. Two alternatives that may be considered:

1. Commemorative Holiday – Recognition of Juneteenth as a commemorative holiday would formally recognize Juneteenth and encourage the Madera community to honor and reflect on the conditions and experiences of others to encourage significant and lasting improvements in our society.

2. Commemorative Holiday with closure of City administrative offices – This option would include commemoration as described in item 1, however City administrative offices would be closed, similar to other US Federal holidays, providing employees an opportunity to participate in and reflect on Juneteenth events.

Council may also have other alternatives in mind beyond what has been noted above and is encouraged to bring these ideas forth at the meeting to discuss with their colleagues how best to commemorate Juneteenth for the City of Madera. Depending on Council’s direction after discussion, staff will bring the appropriate action item back for consideration at a future meeting.

FINANCIAL IMPACT:

Financial impact, if any, will depend on requested action following the discussion.

CONSISTENCY WITH THE VISION MADERA 2025 PLAN:

The Vision 2025 plan includes several action items that may be supported by commemoration of Juneteenth in the City of Madera depending on the specific direction provided by Council. These include action items to support the multicultural community in Madera, encourage an involved public, celebrate our diverse multicultural and ethnic backgrounds, and provide for activities to foster cross-cultural understanding and community pride.

ALTERNATIVES:

Council could direct staff to explore additional avenues for commemoration and celebration of Juneteenth.

ATTACHMENTS:

None