CITY OF
MANTECA
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2021
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CITY OF MANTECA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
Prepared by
FINANCE DEPARTMENT
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CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
INTRODUCTORY SECTION:
Table of Contents .................................................................................................................................................. A-1 Letter of Transmittal ............................................................................................................................................. B-1 City Council and Executive Team ....................................................................................................................... C-1 California Map ...................................................................................................................................................... C-2 Organization Chart ................................................................................................................................................ C-3 FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ...................................................................................................................... 18 Statement of Activities .......................................................................................................................... 19 Fund Financial Statements:
Governmental Funds:
Balance Sheet ..................................................................................................................................... 22 Reconciliation of the Governmental Funds Balance Sheet with the Governmental Activities Net Position .......................................................................................... 23 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 24 Reconciliation of the Net Change in Fund Balances Governmental Funds with the Change in Net Position Governmental Activities ............................................... 25 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
General Fund ............................................................................................................................... 26 A-1 ATTACHMENT 1
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
FINANCIAL SECTION (Continued):
Proprietary Funds:
Statement of Net Position ...................................................................................................................... 30 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................. 31 Statement of Cash Flows ...................................................................................................................... 32 Fiduciary Fund:
Statement of Fiduciary Net Position ..................................................................................................... 36 Statement of Changes in Fiduciary Net Position .................................................................................. 37 Notes to Basic Financial Statements ........................................................................................................ 39 Required Supplementary Information:
Pension Plans:
Miscellaneous Plans:
Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 100 Schedule of Contributions ........................................................................................................ 101 Safety Plan
Schedule of Proportionate Share of the Net Pension Liability ................................................. 102 Schedule of Contributions ........................................................................................................ 103 PARS Enhancement Excess Benefit:
Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 104 Schedule of Contributions ........................................................................................................ 105 Other Post-Employment Benefits Plan:
Schedule of Changes in the Total OPEB Liability and Related Ratios ...................................... 106 A-2 ATTACHMENT 1
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
FINANCIAL SECTION (Continued):
Supplementary Information:
Major Governmental Funds Other Than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Public Facilities Implementation Plan Fund .............................................................................. 110 Non-major Governmental Funds:
Combining Balance Sheet .................................................................................................................... 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 118 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ....................................................................................................................... 122 Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 132 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 133 Combining Statements of Cash Flows ............................................................................................ 134
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................. 138 Changes in Net Position – Last Ten Fiscal Years ................................................................................... 140 Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................................. 142 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................ 144 General Revenues by Source – Last Ten Fiscal Years ............................................................................. 146 General Expenditures by Function – Last Ten Fiscal Years ................................................................... 147 A-3 ATTACHMENT 1
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
STATISTICAL SECTION (Continued):
Revenue Capacity:
Assessed and Estimated Value of Taxable Property – Last Ten Fiscal Years ........................................ 148 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ..................................................... 149 Principal Property Taxpayers – Current Year and Nine Years Ago ....................................................... 150 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 151
Manteca Redevelopment Project Area No. 1 Top Twenty Assessed Values ......................................... 152 Manteca Redevelopment Project Area No. 2 Top Twenty Assessed Values ......................................... 153 Manteca Redevelopment Merged Project Area Top Twenty Assessed Values (2005 Amended Area) . 154
Manteca Redevelopment Amended Merged Project Area
Top Twenty Assessed Values (2004 Amended Area) ....................................................................... 155 Taxable Sales by Category – Last Ten Calendar Years ......................................................................... 156 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ......................................................... 158 Principal Sales Tax Payers – Current Year and Nine Years Ago ........................................................... 159 Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 160
Computation of Direct and Overlapping Debt ........................................................................................ 161 Computation of Legal Bonded Debt Margin .......................................................................................... 162 Revenue Bond Coverage – Water Revenue Bonds – Last Ten Fiscal Years .......................................... 163 Revenue Bond Coverage – Sewer Revenue Bonds – Last Ten Fiscal Years.......................................... 164
Bonded Debt Pledged-Revenue Coverage – Redevelopment Agency Tax Allocation Bonds – Last Ten Fiscal Years .................................................................................................................... 165 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ........................................................ 166 Principal Employers – Current Year and Nine Years Ago ..................................................................... 167 Operating Information:
Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ...................................................................................................................... 168 A-4 ATTACHMENT 1
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
STATISTICAL SECTION (Continued):
Operating Indicators and Capital Asset Statistics Function/Program – Last Ten Fiscal Years .............. 170 FINANCING AUTHORITY SECTION:
Independent Auditor’s Report ........................................................................................................................ 175 Authority-wide Financial Statements:
Statement of Net Position ...................................................................................................................... 178 Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 179 Statement of Cash Flows ...................................................................................................................... 180 Notes to Basic Component Unit Financial Statements ......................................................................... 181 A-5 ATTACHMENT 1
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CITY OF MANTECA
FINANCE DEPARTMENT
1001 W. Center St.
Manteca, CA 95337
Office: (209) 456-8730
August 2, 2023
Honorable Mayor, Members of the City Council, and Residents of Manteca:
I am pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of Manteca, California, for the fiscal year (FY) ended June 30, 2021. The City of Manteca (the City) annually publishes a complete set of financial statements, presented in conformity with Generally Accepted Accounting Principles (GAAP) and audited by an independent, certified public accounting firm.
The City’s Finance Department has prepared this report. Responsibility for both the accuracy of the data and the completeness and fairness of the information, including all disclosures, rests with the City. To the best of the City staff’s knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present the financial position and results of operations of various funds for the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. GAAP requires that statements include a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A, and it should be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditors.
Reporting Entity
The financial statements included in this ACFR present the City, the primary government, and the Manteca Financing Authority (MFA) as a component unit. This component unit is a separate legal entity; however, the City Council sits as the Board of Commissioners and the MFA is dependent upon the City for record keeping and financial report preparation activities.
On June 28, 2011, the State of California adopted ABX1 26, later amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved Redevelopment Agencies as of January 31, 2012. Under the provision of ABX1 26, a city that authorized the creation of a redevelopment agency may elect to serve as the successor agency. On September 20, 2011, the City elected to become the Successor Agency to the Manteca Redevelopment Agency and on February 1, 2012, the Redevelopment Agency’s non-housing related assets were distributed to and the liabilities were assumed by the Successor Agency. The activities of the Successor Agency are subject to the review and approval of a County Oversight Board.
The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency PrivatePurpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency. The activities and net position information for the Private-Purpose Trust Fund can be found in the Fiduciary Financial Statements section.
Additionally, under the provision of ABX1 26 and pursuant to Health and Safety Code Section 34176(b), on February 7, 2012, the City elected to become the Housing Successor and certain housing assets were transferred to the City’s Successor Agency Housing Special Revenue Fund pending State approval of the transfer, which occurred in 2012.
The activities of the Housing Successor are reported in the Low and Moderate Income Housing Assets Special Revenue Fund as the City has control of the assets. These funds may be used in accordance with the low and moderate income housing provisions of the California Redevelopment Law.
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Government Profile
The City of Manteca is located seventy-six (76) miles due east of San Francisco in northern San Joaquin County and is situated along Highway 99 and the Highway 120 bypass that serves as a connector to Interstate 5. The city is uniquely positioned with access not only to three major freeways, but also within close proximity to the Union Pacific Intermodal Yard, the Santa Fe Railroad Intermodal Yard, the Stockton Metro Airport and the Port of Stockton. Manteca’s strategic location provides easy commuting to the San Francisco Bay Area, San Jose, and Sacramento. With more than 18 million consumers within 100 miles of Manteca, the city is positioned for future residential growth as well as business expansion through the location and/or relocation of manufacturing, retailing, wholesaling, and service industries.
The City of Manteca is adjacent to extensive green areas and agricultural lands in California’s Central Valley.
Agriculturally oriented business activities have always been an integral component of our community and continue to be an important part of Manteca's local economy. Strong land use policies lay the foundation for economic development growth and expansion as well as continued residential development. Large-scale opportunity sites that are compatible with a wide range of uses support commercial, industrial, retail and professional growth. These employment bases along with Manteca’s access to transportation routes position Manteca to attract employers migrating to the Central Valley from the San Francisco Bay Area and other regions. These new businesses will join Manteca’s many large employers including packaging and distribution plants, manufacturers, electronic firms, and two local hospitals.
The City of Manteca is a full-service city providing police protection, fire protection, parks and recreation, planning, building inspection, engineering, fleet maintenance, construction and maintenance of streets, public buildings, and other infrastructure, as well as solid waste, water, and wastewater utility services. The City is a general-law city incorporated under California law on May 28, 1918. The City operates under the City Council/Manager form of government. The Mayor is directly elected by the people and serves as a member of the City Council for a four-year term. Four council members are elected at-large and serve staggered four-year terms. During the 2022 election, the City changed from having council members elected at-large to having council members elected by district. This will be phased-in as current council members complete their at-large term. All elections are conducted on a non-partisan basis. The City Council is also financially accountable for the Manteca Financing Authority.
Economic Conditions and Outlook
Even through the uncertainty that the COVID-19 pandemic brought in March of 2020, the City of Manteca continues to grow. The City’s recovery from the recession has continued throughout 2019 and 2020 even when taking into account the pandemic. Positive indicators included increased consumer spending and continued growth in new and resale home values. Through strong economic development and bolstered consumer spending, general sales tax was 5.5% higher than revenues for the same period last year. The total property tax received of $21.1 million was a 9.0% increase of taxes received when compared to the prior year.
In FY 2020-21, the Development Services Department issued 786 permits for new residential construction. Despite the restrictions brought on by the COVID-19 pandemic, the pace of housing construction has continued unabated, with 877 permits issued during fiscal year 2021-22 from July 1, 2021 through June 30, 2022, and 277 permits issued during the first half of fiscal year 2022-23 from July 1, 2022 through December 31, 2022. Building activity typically ramps up during the spring and summer of each year and the period from January 1, 2023 through June 30, 2023 is expected to reflect an average of 50 new permits each month. The primary constraint to development in Manteca is lot availability and interest rate uncertainty.
As of June 30, 2021, unemployment rates in California had continued to increase due to protective measures the state issued in response to the COVID-19 pandemic. The U.S. Bureau of Labor Statistics listed the June 2021 statewide unemployment rate at 7.7%, the San Joaquin County rate at 9.6% and the City of Manteca rate at 9.5%. Reflective of an economy that is continuing to recover from the global pandemic, unemployment rates are down from June 2020 when the statewide unemployment rate was 14.1%, San Joaquin County was 14.5%, and the City of Manteca was 13.6%.
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Budgetary Control
The City prepares a budget for each fiscal year on or before June 30. The City maintains budgetary controls to ensure compliance with the legal provisions embodied in the annual appropriated budget approved by the City Council.
Activities of the general fund, special revenue funds, and capital projects funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level for the general fund and at the fund level for all other funds. The City also applies and maintains encumbrance accounting as a technique of accomplishing budgetary control. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.
Long-Term Financial Planning
The past decade has been fiscally challenging for many cities throughout California and the nation. To navigate through the diverse and rapidly changing fiscal climate, Manteca has set the foundation for future stability through annual City Council strategy and goal setting sessions. Through these sessions, the City develops long-term financial planning strategies designed to meet Council's goals and priorities. The City annually adopts a Capital Improvement Plan (CIP).
Projects in the CIP are analyzed not only on the merits and benefits of the proposal, but also on the long-term financial impact on City resources resulting from anticipated maintenance.
Single Audit
The City is subject to an annual single audit in compliance with provisions of the Single Audit Act as amended in 1996, the United States Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Nonprofit Organizations, and the Uniform Guidance effective December 26, 2014. Information contained in this separate report related to the single audit includes the Schedule of Expenditures of Federal Awards and the auditor’s report on the Schedule along with their reports on internal controls and compliance with applicable laws and regulations.
Internal Controls
City management is responsible for establishing and maintaining an internal control structure designed to ensure that assets are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP.
The internal control structure is designed to provide reasonable, but not absolute, assurance these objectives are met.
The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived from the control, and 2) the valuation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above-stated framework. We believe our internal accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded.
Independent Audit
State statutes require an annual audit of the City's accounts by an independent certified public accountant. The City of Manteca selected the accounting firm of Maze and Associates. The auditor's report on the basic financial statements is included in the financial section of this report.
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CITY OF MANTECA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended June 30, 2021
CITY COUNCIL
(as of June 30, 2021)
Benjamin J. Cantu, Mayor
Gary Singh, Vice Mayor
David Breitenbucher, Councilmember
Charlie Halford, Councilmember
Jose Nuno, Councilmember
EXECUTIVE TEAM
(as of April 30, 2023)
Toni Lundgren, Interim City Manager
Jose Jasso, Interim Assistant City Manager
David Nefouse, City Attorney
Cassandra Candini-Tilton, Director of Legislative Services/City Clerk Pennie Arounsack-Marques, Director of Information Technology & Innovation Dawn Cortesi, Interim Director of Human Resources
Jared Hansen, Acting Director of Finance
Carl Brown, Director of Public Works
Kevin Jorgensen, Director of Engineering
Chris Erias, Director of Development Services
Barbara Harb, Economic Development Manager
Brandy Clark, Recreation Manager
Stephen Schluer, Interim Chief of Police
Dave Marques, Fire Chief
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•Manteca
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Citywide Organizational Chart
ORGANIZATIONAL CHART
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Manteca, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Manteca, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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, Supplementary Information, and Statistical Section listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The Supplementary Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is 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.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 2, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the 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.
Pleasant Hill, California
August 2, 2023
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MANAGEMENT’S DISCUSSION AND ANALYSIS
This discussion and analysis provides an overview of the City of Manteca (the City) and its financial performance for the fiscal year ended June 30, 2021. This report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standard Board (GASB). Readers should consider this information in conjunction with the information provided in the accompanying basic financial statements and notes thereto.
FINANCIAL HIGHLIGHTS
The City’s assets and deferred outflows of resources exceeds its liabilities and deferred inflows of resources at the close of the 2020-21 fiscal year by $791.4 million (Net Position). Of this amount $(9.4) million (Unrestricted Net Position) is designated to be used to meet ongoing obligations to citizens and creditors; $627.5 million is restricted for capital projects, debt service and legally segregated taxes, grants, and fees; and $173.3 million is restricted net position. The Unrestricted Net Position reflects the inclusion of a Net Pension Liability of $124.9 million and a total Other Post-Employment Benefits (OPEB) Liability of $43.0 million in accordance with the GAAP.
As of June 30, 2021, the governmental activities reported a total net position of $524.6 million including: $414.6 million net investment in capital assets, $173.3 million in restricted net position, and a combined unrestricted balance of $(63.3) million.
Business-type activities reported a combined net position of $266.9 million including: $212.9 million net investment in capital assets, and $54.0 in unrestricted net position. As of June 30, 2021 the fund balance for the General Fund was $37.0 million including: $1.1 million for Non-Spendable items such as deposits, prepaid assets, advances from other funds, and inventory; $0.5 million of Restricted; $22.7 million Assigned for items such as economic revitalization and public facilities oversizing; and $12.8 million Unassigned.
Governmental capital assets increased by $19.5 million in comparison to prior year assets representing additions of land, streets, storm drainage, equipment, and construction in progress. The increase is also reflected in the net investment in capital assets.
Governmental liabilities increased by $17.0 million over the prior year of which $12.1 million is due to increases in net pension and other post-employment benefits (OPEB) increases.
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements which are comprised of the following sections:
1) Introductory Section, which includes the Transmittal Letter and general information, 2) Management’s Discussion and Analysis,
3) The Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the Notes to these financial statements, 4) Required Supplemental Information,
5) Combining Statements for Non-major Governmental Funds and Internal Service Funds, 6) Statistical Information
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The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position.
Government-wide Financial Statements
The Government-wide Financial Statements provide a longer-term view of the City’s activities as a whole and are presented in a manner similar to a private-sector business. These statements are comprised of:
Statement of Net Position – Presents information on all City assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between them reported as Net Position. Over time, increases or decreases in Net Position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
Statement of Activities – Presents information reflecting any change in the government’s net position during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs (regardless of the timing of related cash flows). Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation and compensated time leaves).
Both of the Government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).
Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, library, public safety, public works, parks and recreation, and streets and highways. These services are supported by general city revenues such as taxes, and by specific program revenues such as developer fees. Business-type activities - All of the City’s enterprise activities are reported here, including golf, sewer, water, and solid waste. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.
The City’s business-type activities include not only the City of Manteca but also the activities of a separate legal entity, the Manteca Financing Authority (MFA). The City Council serves as the governing body of this component unit and the City is financially accountable for the MFA. The activities of the MFA are reported in the business-type activities of the sewer fund.
Pursuant to ABX1 26, approved by Governor Brown on June 28, 2011 and upheld by the California State Supreme Court on December 29, 2011, the Manteca Redevelopment Agency (RDA) was dissolved on January 31, 2012. The former RDA is now administered under the name of Successor Agency to the Manteca Redevelopment Agency (SA). The activities of the SA can be found in the Fiduciary Fund Section of the Financial Statements.
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Fund Financial Statements
The Fund Financial Statements report the City’s operations in more detail than the Government-wide Statements and focus primarily on the short-term activities of the City’s General Fund and other Major Funds. The Governmental Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts. Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis and include all their assets and liabilities, current and long-term. Each Major Fund is presented individually, with all Non-major Funds summarized and presented only in a single column. Subordinate schedules present the detail of these Nonmajor funds. Major Funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City’s activities.
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. All of the City’s funds can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds. Governmental Funds – These funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources and are therefore prepared on the modified accrual basis. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.
The City of Manteca has 27 governmental funds of which 3 are considered major funds for presentation purposes. Each major fund is presented separately in the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances. The financial information for the remaining non-major governmental funds is combined into a single, aggregated presentation.
Proprietary Funds – The City maintains 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. Internal Service Funds account for the financial activity of the City’s equipment/information technology pool, vehicle fleet pool, self-insurance/risk management, and payroll tax benefits. Financial statements for proprietary funds are prepared on the full accrual basis and include all their assets and deferred outflows of resources, and liabilities and deferred inflows of resources, current and long-term.
Since the City’s Internal Service Funds provide goods and services only to the City’s governmental activities, their activities are reported only in total at the fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City Funds. These revenues are eliminated in the City-wide financial statements and any related profits or losses are returned to the Activities which created them.
Fiduciary Funds – These funds are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the Government-wide Financial Statements because the resources of those funds are not available to support the City’s own programs. The accounting used for Fiduciary Funds is similar to that used for Proprietary Funds.
With the dissolution of the RDA per ABX1 26 and AB 1484, the activities of the SA are reported as a Private Purpose Trust Fund in the Fiduciary Fund section.
Notes to the Financial Statements
The Notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements.
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Combining Statements
This section of the report includes additional detailed information about non-major governmental and internal service funds.
Required Supplemental Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the financial activities of the City.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position – As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, combined net position (governmental and business-type activities) totaled $791.4 million as of June 30, 2021. This is an increase of $71.8 million from June 30, 2020.
The following table reflects the Summary of Net Position for the Fiscal Year Ended June 30, 2021 with comparative data for the Fiscal Year Ended June 30, 2020.
Summary of Net Position as of June 30
(in thousands of dollars)
Governmental Activities Business-Type Activities Total Government 2021 2020 2021 2020 2021 2020
Cash and Other Assets $ 249,730 $ 217,469 $ 118,357 $ 107,888 $ 368,087 $ 325,357 Capital Assets 414,566 395,095 269,489 252,956 684,055 648,051 Total Assets 664,296 612,564 387,846 360,844 1,052,142 973,408 Deferred Outflows 26,719 21,159 7,427 4,961 34,146 26,120 Current Liabilities 36,160 27,571 24,841 24,907 61,001 52,478 Non-Current Liabilities 2,786 6,500 60,944 64,356 63,730 70,856 Net Pension & OPEB Liability 126,478 114,381 41,405 36,750 167,883 151,131 Total Liabilities 165,423 148,452 127,190 126,013 292,614 274,465 Deferred Inflows 1,014 3,530 1,215 1,915 2,227 5,445
Net Investment in Capital Assets 414,566 395,180 212,888 193,144 627,454 588,324 Restricted Net Position 173,389 149,337 - - 173,389 149,337 Unrestricted Net Position (63,376) (62,776) 53,980 44,733 (9,396) (18,043) Total Net Position $ 524,579 $ 481,741 $ 266,868 $ 237,877 $ 791,447 $ 719,618 8 ATTACHMENT 1
The City’s Government-wide Net Position as of June 30, 2021, comprised the following:
Cash and investments comprised $274.1 million, an increase of $23.6 million over the prior year.
Restricted cash held by fiscal agents and investments totaled $28.0 million, an increase of $2.8 million.
Total Governmental and Business-type receivables were comprised of $43.1 million in current receivables and $22.9 million of long-term receivables. Long-term receivables are related to grants and loans provided by the former RDA designed to encourage the construction of or improvement to low-to-moderate-income housing. The grants and loans have varying repayment terms and interest rates.
Net investment in capital assets of $627.5 million include the City’s infrastructure in addition to all other City assets, net of the debt incurred to construct an/or acquire those assets. Net capital assets increased $39.1 million primarily from developer dedicated infrastructure of $19.0 million, North sewer trunk line improvements of $9.1 million, 120/Union Road Interchange improvements of $9.6 million and water treatment system projects of $6.0 million. Restricted Net Position, totaling $173.3 million, includes $112.3 million restricted for capital projects, $31.6 million restricted for redevelopment projects, and $29.4 million restricted for other projects as specified by funding source restrictions.
Unrestricted Net Position totals $(9.4) million and is designated to be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements or restrictions. While these assets are technically unrestricted, most of these assets are committed or assigned for a specific use. The unrestricted balance reflects the inclusion of the Net Pension Liability of $124.9 million and the Total OPEB Liability of $43.0 million.
9 ATTACHMENT 1
The Change in Net Position as expressed as the change in revenues and expenses through June 30, 2021 is further reflected in the Statement of Activities.
Statement of Activities
Fiscal Year Ended June 30,
(in thousands of dollars)
Governmental Activities Business-Type Activities Total Government 2021 2020 2021 2020 2021 2020
Program Revenues:
Charges for Services $ 21,108 $ 18,578 $ 62,176 $ 55,006 $ 83,284 $ 73,584 Operating Grants & Contributions 9,597 9,952 23,126 - 32,723 9,952 Capital Grants & Contributions 50,590 38,155 4,402 10,234 54,992 48,389 General Revenues:
Property Taxes 21,126 19,386 - - 21,126 19,386
Sales Taxes 23,510 22,293 - - 23,510 22,293
Other Taxes 4,145 3,435 - - 4,145 3,435
Interest Income 1,013 4,501 126 2,679 1,139 7,180
Development agreements 1,268 1,144 - - 1,268 1,144
Other Revenue 598 216 154 207 752 423
Gain from Sale of Capital Assets -- 457 3 - 3 457
Total Revenues 132,955 118,117 89,987 68,126 222,942 186,243 Governmental Activities Expenses:
General Government 9,079 7,054 - - 9,079 7,054
Community Development 10,365 8,242 - - 10,365 8,242
Public Safety 40,641 42,395 - - 40,641 42,395
Library 87 145 - - 87 145
Public Works 9,367 7,137 - - 9,367 7,137
Recreation 9,047 11,711 - - 9,047 11,711
Streets and Highways 11,463 10,268 - - 11,463 10,268
Interest and fiscal charges 163 130 - - 163 130
Business-Type Activities:
Water - - 26,674 18,968 26,674 18,968
Sewer - - 19,698 18,597 19,698 18,597
Solid Waste - - 12,885 12,752 12,885 12,752
Golf - - 1,644 1,327 1,644 1,327
Total Expenses 90,212 87,082 60,901 51,644 151,113 138,726 Increase (Decrease) in Net
Position Before Transfers 42,743 31,035 29,086 16,482 71,829 47,517 Transfers 95 (582) (95) 582 - -
Change in Net Position 42,838 30,453 28,991 17,064 71,829 47,517 Net Position - Beginning 481,741 451,288 237,877 220,813 719,618 672,101 Net Position - Ending $ 524,579 $ 481,741 $ 266,868 $ 237,877 $ 791,447 $ 719,618 10 ATTACHMENT 1
Revenues
Total government-wide revenues increased by $36.7 million, or 19.7% over the prior year to a total of $222.9 million. Governmental Activities charges for services increased by $2.5 million compared to the prior year while capital grants and contributions increased by $12.4 million. Business-type Activities charges for services increased by $7.2 million and capital grants and contributions decreased by $5.8 million compared to the prior year.
General Revenues decreased by $2.4 million including: increase in property taxes of $1.7 million, increase in sales taxes of $1.2 million, increase in other taxes of $0.7 million, decrease in interest income of $6.0 million, an increase in development agreements of $0.1 million, an increase in other revenue of $0.3 million, and a decrease in gain from sale of capital assets of $0.4 million.
Expenses
Expenses for the City totaled $151.1 million for the fiscal year ending June 30, 2021, an increase of $12.4 million, or 8.9% over the prior year. Governmental activities incurred $90.2 million of expenses, increasing
3.6%, while business-type activities incurred $60.9 million in expenses, a 17.9% increase over the prior year. Of the Governmental Activities, the largest expenses by activity were in Public Safety $40.6 million, Streets and Highways $11.5 million, and Community Development $10.4 million. Business-type activity expenses totaled $60.9 million, with the two largest activities being Water at $26.7 million and Sewer totaling $19.7 million for the year.
Governmental Activities
As presented in the following two graphs, the largest funding sources for governmental activities are grants and contributions (44.7%), Taxes (37.1%), and Charges for Services (16.0%). The largest uses of resources for the governmental activities are Public Safety (45.6%), Streets and Highways (12.4%), and Community Development (11.3%).
Revenues by Source – Governmental Activities
Charges for Services
15.9%
Grants and
Contributions
45.3%
Taxes
36.7%
Other Revenue
2.2%
11 ATTACHMENT 1
Expenditures by Program – Governmental Activities
Business-type Activities
Net operating income (loss) of Business-type Activities increased by $6.2 million. Net operating income for water increased by $4.0 million, wastewater increased $1.2 million, solid waste increase $0.6 million and golf increased $0.3 million.
Net Operating Income (Loss) – Business-Type Activities
General Government
10.1%
Community
Development
11.5%
Public Safety
45.1%
Library
0.1%
Public Works
10.4%
Parks and Recreation
10.0%
Streets and Highways
12.7%
(1,000,000)
‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Water Wastewater Solid Waste Golf
2021 2020
12 ATTACHMENT 1
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.
The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements.
The classification of spendable fund balances to committed, assigned, and unassigned, is intended to be helpful in measuring the resources available for spending at the end of the fiscal year. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
At June 30, 2021, the City’s governmental funds reported combined fund balances of $174.6 million, which is an increase of $23.7 million or 15.7% compared with the prior year. Governmental fund revenues were $115.2 million this year, an increase of $20.4 million, or 21.5%. The General Fund accounted for 43.2% of this revenue total. Expenditures were $90.7 million this year. Of this total, $48.3 million was in the General Fund, $4.1 million was in other major funds and $38.3 million was in non-major funds.
General Fund
General Fund revenues increased in fiscal year 2020-21 by $2.9 million or 5.9% as compared to fiscal year 2019-20. Sales tax increased by 3.3% and property taxes increased 9.0%. General Fund expenditures increased by $4.5 million or 10.2% more than the prior year expenditures.
At June 30, 2021, the General Fund balance was comprised of $1.1 million in non-spendable balances, $0.5 million in restricted balances, $22.6 million of assigned balances and $12.8 million in unassigned balance.
Fund balances have been classified in accordance with GAAP. While amounts have been categorized as unassigned, they may be informally earmarked by the City Council for specific purposes.
Low and Moderate Income Housing Assets Fund
On June 28, 2011 the State of California adopted ABx1 26, amended by AB 1484 on June 27, 2012, which dissolved redevelopment agencies as of January 31, 2012. All assets of the former RDA were transferred as prescribed by law to either the Housing Successor or to the Successor Agency.
The City of Manteca elected to become the Housing Successor and established the Low and Moderate Income Housing Assets Special Revenue Fund to account for the housing assets and activities formally provided by the Manteca Redevelopment Agency. As of June 30, 2021, the net position of the Low and Moderate Income Housing Assets Special Revenue Fund was comprised of $0.5 million in restricted fund balance.
Public Facilities Implementation Plan
Development fees are collected in the areas designated by the Public Facilities Implementation Plan (PFIP) to finance the construction of future transportation and storm drainage infrastructure. The PFIP was updated in fiscal year 2012-13 except for the transportation element which was completed in fiscal year 2018-19.
Total fund balance was $33.7 million at year end an increase of 25.4% over the prior year. Revenues totaled $10.9 million for the year and expenditures were $4.1 million which includes $3.4 million of capital outlay for construction projects in fiscal year 2020-21.
13 ATTACHMENT 1
Proprietary Funds
The City’s Proprietary Funds provide the same type of information found in the Government-Wide Financial Statements, but in more detail. The City’s Proprietary Funds are comprised of the Water Fund, the Sewer Fund, the Solid Waste Fund, and the Golf Fund. Proprietary Fund net position totaled $266.9 million at June 30, 2021. Proprietary operating revenues were $62.3 million and operating expenses were $49.9 million in fiscal year 2020-21.
Water Fund
The net position of the Water Fund is $92.7 million, consisting of $33.3 million unrestricted funds and a net investment in capital assets of $59.4 million at the end of the fiscal year.
Activities for the year were comprised of $21.1 million in operating revenues for the current year and $17.4 million in operating expenses. Charges for services showed an increase of 21.1% as compared to the prior year. Operating expenses decreased by 2.2% from fiscal year 2019-20. The largest operational decrease year over year was vehicle maintenance, which decreased by 41.6%.
Sewer Fund
The net position of the Sewer Fund is $173.5 million for the current year. Operating revenues for the year were $24.9 million, an increase of 9.9% from fiscal year 2019-20. Operating expenditures increased by $1.1 million or 6.3% over the prior year. Vehicle maintenance experienced the biggest change year over year with a 76.9% increase in costs. A total of $145.0 million of the fund’s net position is invested in capital assets with $28.5 million unrestricted.
Solid Waste Fund
Operating revenues for fiscal year 2020-21 totaled $14.6 million, an increase of 5.3% over the prior fiscal year. Operating expenses were $12.9 million a slight increase of 1.1% from fiscal year 2019-20, leaving the fund with operating income of $1.7 million for the year. Net position increased by $1.8 million to $(0.2) million, of which $6.5 million is invested in capital assets, and $(6.7) million is unrestricted. Long-term liabilities total $13.4 million with $9.1 million for net pension liability and $4.3 million for total OPEB liability. These long-term liabilities are the cause of the negative net position.
Golf Fund
The operating revenue for this fund totaled $1.7 million as of June 30, 2021, an increase of 60.3%.
Operating expenses totaled $1.6 million, an increase of 23.8% from the prior year. Due to this positive operating outcome, the budgeted transfer in from the General Fund to compensate for reduced rates for youth and senior programs was not necessary.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget for the General Fund totaled $45.5 million in revenues, $50.6 million in expenditures, and expenditures exceeding revenues by $5.1 million. The difference in net appropriations between the original budget and the final amended budget was an increase of $3.1 million, primarily due to an 18.2% increase in projected General Government expenditures and a 115.0% increase in projected Capital expenditures.
General Fund revenues in total exceed their final budgeted forecasts. Property Taxes for the City surpassed projections by $3.3 million. Total revenues exceeded budget by $7.1 million for the year. 14 ATTACHMENT 1
At the end of the fiscal year, the total actual expenditures of the General Fund were $48.3 million which was $2.3 million less than the total amended budget.
CAPITAL ASSETS
At the end of fiscal year 2020-21, the City had $684.1 million, net of depreciation, invested in a broad range of capital assets used in governmental and business type activities as outlined in Note 7.
Capital Assets
Fiscal Year Ended June 30,
(in thousands of dollars)
Governmental Activities Business-Type Activities Total Government FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020
Land $ 61,306 $ 61,306 $ 4,394 $ 4,394 $ 65,700 $ 65,700 Construction in Progress 74,919 67,933 33,624 27,743 108,543 95,676 Buildings & Improvements 43,260 38,101 9,411 9,199 52,671 47,300 Machinery & Equipment 24,689 23,690 26,191 22,945 50,880 46,635 Storm Drain 62,617 59,112 - - 62,617 59,112
Streets 249,887 236,483 - - 249,887 236,483
Parks 74,119 70,690 - - 74,119 70,690
Sewer lines and improvements - - 72,696 70,430 72,696 70,430 Sewer plant expansion - - 134,327 122,718 134,327 122,718 Water wells and pipelines - - 132,874 130,439 132,874 130,439 Other Infrastructure - - 165 165 165 165
Less accumulated depreciation (176,231) (162,220) (144,194) (135,077) (320,425) (297,297) Total $ 414,566 $ 395,095 $ 269,488 $ 252,956 $ 684,054 $ 648,051
DEBT SERVICE ADMINISTRATION
Each of the City’s debt issues is discussed in detail in Note 8. At the end of the year, the City had zero longterm debt outstanding associated with Governmental Activities and $64.1 million in debt associated with Business-type Activities. Debt in Governmental Activities was related to capital lease direct borrowing for a fire engine, which was fully repaid during the year. Debt in the Business-type Activities are related to the Sewer and Water Revenue bonds.
Outstanding Debt
Fiscal Year Ended June 30,
(in thousands of dollars)
Governmental Activities Business-Type Activities Total Government FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020
Capital Lease $ - $ 116 $ - $ - $ - $ 116
Revenue Bonds - - 64,079 67,291 64,079 67,291
Total $ - $ 116 $ 64,079 $ 67,291 $ 64,079 $ 67,407
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the Finance Department, at 1001 W. Center St., Manteca, CA 95337 or [email protected]. 15 ATTACHMENT 1
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ATTACHMENT 1
CITY OF MANTECA
STATEMENT OF NET POSITION
AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all of the City’s Business-type Activities in a single column; these columns are followed by a Total column that presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business-type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, deferred outflows/inflows of resources, available revenues and measurable expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, followed by the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both of these Statements include the financial activities of the City and the Manteca Financing Authority, which is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of this entity. 17 ATTACHMENT 1
CITY OF MANTECA
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments (Note 3) $178,305,416 $95,822,831 $274,128,247 Restricted cash and investments (Note 3) 11,439,054 16,563,092 28,002,146 Accounts receivable, net 19,982,340 15,930,476 35,912,816 Taxes receivable 7,112,061 7,112,061
Interest receivable 29,255 29,255
Internal balances (Note 4D) 9,959,375 (9,959,375)
Long-term notes receivable (Notes 5 and 14E) 22,873,253 22,873,253 Employee notes receivable (Note 6) 29,555 29,555
Capital assets, not being depreciated (Note 7) 136,224,964 38,018,351 174,243,315 Capital assets, being depreciated (net) (Note 7) 278,340,678 231,470,683 509,811,361 Total Assets 664,295,951 387,846,058 1,052,142,009
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 20,015,322 5,244,801 25,260,123 Deferred outflows related to OPEB (Note 11) 6,703,265 2,182,122 8,885,387 Total Deferred Outflows of Resources 26,718,587 7,426,923 34,145,510
LIABILITIES
Accounts payable 5,155,974 2,481,035 7,637,009
Contracts payable 9,334,537 16,569,076 25,903,613
Refundable deposits 7,122,739 1,869,669 8,992,408
Accrued liabilities 2,447,092 786,192 3,233,284
Unearned revenue 6,964,189 6,964,189
Compensated absences (Note 1G):
Due within one year 4,356,518 4,356,518
Due in more than one year 2,757,976 2,757,976
Estimated claims liability (Note 13):
Due within one year 777,600 777,600
Due in more than one year 28,504 28,504
Long-term debt (Note 8):
Due within one year 3,135,000 3,135,000
Due in more than one year 60,943,904 60,943,904
Net pension liability (Note 10):
Due in more than one year 96,205,446 28,672,160 124,877,606 Total OPEB liability (Note 11):
Due in more than one year 30,272,097 12,732,796 43,004,893 Total Liabilities 165,422,672 127,189,832 292,612,504
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions (Note 10) 964,904 279,425 1,244,329 Deferred inflows related to OPEB (Note 11) 47,592 935,314 982,906 Total Deferred Inflows of Resources 1,012,496 1,214,739 2,227,235 NET POSITION (Note 9):
Net investment in capital assets 414,565,642 212,888,678 627,454,320 Restricted for:
Capital projects 112,356,027 112,356,027
Redevelopment projects 31,651,484 31,651,484
Special revenue projects:
Development mitigation 10,077,147 10,077,147
Landscaping and lighting 1,429,461 1,429,461
Public safety 6,068,716 6,068,716
Other special revenue projects 11,806,813 11,806,813
Total Restricted Net Position 173,389,648 173,389,648
Unrestricted (63,375,920) 53,979,732 (9,396,188)
Total Net Position $524,579,370 $266,868,410 $791,447,780 See accompanying notes to basic financial statements
18 ATTACHMENT 1
CITY OF MANTECA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:
General government $9,079,274 $6,172,866 ($2,906,408) ($2,906,408) Community development 10,364,833 7,062,924 $344,512 $14,559,712 11,602,315 11,602,315 Public safety 40,640,436 2,969,457 1,826,095 1,513,920 (34,330,964) (34,330,964) Library 87,185 (87,185) (87,185)
Public works 9,367,355 1,056,285 3,020,761 6,066,790 776,481 776,481 Parks and recreation 9,047,085 3,846,159 217 4,638,320 (562,389) (562,389) Streets and highways 11,463,230 4,406,067 23,811,555 16,754,392 16,754,392 Interest and fiscal charges 163,409 (163,409) (163,409) Total Governmental Activities 90,212,807 21,107,691 9,597,652 50,590,297 (8,917,167) (8,917,167) Business-type Activities:
Water 26,674,047 21,103,821 23,126,463 2,134,952 $19,691,189 19,691,189 Sewer 19,697,865 24,757,696 2,266,764 7,326,595 7,326,595 Solid waste 12,884,734 14,624,464 1,739,730 1,739,730
Golf 1,643,383 1,689,785 46,402 46,402
Total Business-type Activities 60,900,029 62,175,766 23,126,463 4,401,716 28,803,916 28,803,916 Total $151,112,836 $83,283,457 $32,724,115 $54,992,013 (8,917,167) 28,803,916 19,886,749 General revenues:
Taxes:
Property taxes 21,126,114 21,126,114
Sales taxes 23,509,852 23,509,852
Other taxes 4,144,750 4,144,750
Interest income 1,012,967 125,791 1,138,758
Development agreements, unrestricted 1,268,286 1,268,286 Other revenue 598,244 154,268 752,512
Gain from sale of capital assets 2,500 2,500
Transfers, net (Note 4A) 95,184 (95,184)
Total general revenues and transfers 51,755,397 187,375 51,942,772 Change in Net Position 42,838,230 28,991,291 71,829,521 Net Position-Beginning 481,741,140 237,877,119 719,618,259 Net Position-Ending $524,579,370 $266,868,410 $791,447,780 See accompanying notes to basic financial statements
19 ATTACHMENT 1
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ATTACHMENT 1
FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal 2021. Individual nonmajor funds may be found in the Supplemental Section.
GENERAL FUND
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund.
LOW AND MODERATE INCOME HOUSING ASSETS FUND
Established to account for revenues and expenditures as a result of the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
PUBLIC FACILITIES IMPLEMENTATION PLAN FUND
This fund was initially established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the drainage and transportation elements of the Plan. The sewer and water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds. 21 ATTACHMENT 1
CITY OF MANTECA
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2021
Low and Moderate Public Facilities Other Total
Income Housing Implementation Governmental Governmental General Assets Plan Funds Funds
ASSETS
Cash and investments (Note 3) $31,166,298 $502,184 $26,687,452 $103,681,520 $162,037,454 Restricted cash and investments (Note 3) 463,902 3,055,435 7,919,717 11,439,054 Accounts receivables (net of allowance for
estimated uncollectible accounts) 1,431,074 3,109,172 15,722,768 20,263,014 Taxes receivable 5,405,467 1,706,594 7,112,061
Interest receivable 29,255 29,255
Due from other funds (Note 4B) 893,744 893,744
Advances to other funds (Note 4C) 1,081,780 10,399,261 300,000 11,781,041 Long-term notes receivable (Notes 5 and 14E) 675,000 23,023,459 23,698,459 Total Assets $41,146,520 $23,525,643 $43,251,320 $129,330,599 $237,254,082
LIABILITIES
Accounts payable $1,891,670 $49,046 $2,442,330 $4,383,046 Contracts payable 5 721,140 28,406 749,551
Refundable deposits 845,059 4,173,679 2,103,022 7,121,760 Accrued liabilities 11,057 11,057
Due to other funds (Note 4B) 893,744 893,744
Advances from other funds (Note 4C) 1,521,666 300,000 1,821,666 Unearned revenue 6,964,189 6,964,189
Total Liabilities 2,747,791 6,465,531 12,731,691 21,945,013
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 700,710 3,106,707 13,171,827 16,979,244 Unavailable revenue - notes receivable (Notes 5 and 14E) 675,000 $23,023,459 23,698,459 Total Deferred Inflows of Resources 1,375,710 23,023,459 3,106,707 13,171,827 40,677,703
FUND BALANCES
Fund balance (Note 9):
Nonspendable 1,081,780 1,081,780
Restricted 463,902 502,184 33,679,082 101,102,956 135,748,124 Committed
Assigned 22,693,202 2,951,856 25,645,058
Unassigned 12,784,135 (627,731) 12,156,404
Total Fund Balances 37,023,019 502,184 33,679,082 103,427,081 174,631,366 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $41,146,520 $23,525,643 $43,251,320 $129,330,599 $237,254,082 See accompanying notes to basic financial statements
22 ATTACHMENT 1
CITY OF MANTECA
Reconciliation of the
GOVERNMENTAL FUNDS-BALANCE SHEET
with the
GOVERNMENTAL ACTIVITIES NET POSITION
JUNE 30, 2021
Total fund balances reported on the Governmental Funds Balance Sheet $174,631,366 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds.
413,393,519
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.
Cash and investments 16,267,962
Restricted cash and investments
Accounts receivable 19,326
Prepaid items
Employee notes receivable 29,555
Capital assets, not being depreciated 219,715
Capital assets (net of accumulated depreciation) 952,408 Contracts and accounts payable (302,359)
Accrued liabilities (2,436,035)
Refundable deposits (979)
Compensated absences (7,114,494)
Estimated claims liability (806,104)
Net pension liability and deferred outflows/inflows related to pensions (2,376,658) Total OPEB liability and deferred outflows/inflows related to OPEB (1,027,845)
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 39,907,134
LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Net pension liability and deferred outflows/inflows related to pensions (74,778,370) Total OPEB liability and deferred outflows/inflows related to OPEB (22,588,579) Contracts payable (8,584,986)
Allowance for conditional grants (825,206)
NET POSITION OF GOVERNMENTAL ACTIVITIES $524,579,370
See accompanying notes to basic financial statements
23 ATTACHMENT 1
CITY OF MANTECA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021
Low and Moderate Public Facilities Other Total
Income Housing Implementation Governmental Governmental General Assets Plan Funds Funds
REVENUES
Property taxes $21,126,114 $21,126,114
Sales taxes 14,814,992 $8,694,860 23,509,852
Other taxes 5,315,394 5,315,394
Licenses and permits 1,061,292 10,267,993 11,329,285
Fines and forfeitures 478,460 478,460
Use of money and property (375,223) $366 $405,810 875,886 906,839 Revenue from other agencies 440,732 16,363,336 16,804,068 Charges for current services 9,331,878 10,513,415 15,248,340 35,093,633 Other revenue 422,250 61,140 106,460 589,850
Total Revenues 52,615,889 61,506 10,919,225 51,556,875 115,153,495
EXPENDITURES
Current:
General government 6,244,845 302,005 6,546,850
Community development 407,899 5,139,349 5,547,248
Public safety 29,081,054 9,678,378 38,759,432
Library 75,421 75,421
Public works 4,896,999 542,994 2,298,427 7,738,420
Parks and recreation 3,014,873 3,336,578 6,351,451
Streets and highways 4,278,286 4,278,286
Nondepartmental 3,828,297 3,828,297
Capital outlay 747,904 3,412,424 13,146,583 17,306,911
Debt service:
Principal 115,961 115,961
Interest and fiscal charges 149,534 13,875 163,409
Total Expenditures 48,297,292 4,104,952 38,309,442 90,711,686
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,318,597 61,506 6,814,273 13,247,433 24,441,809
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4A) 496,000 496,000
Transfers (out) (Note 4A) (1,190,225) (1,190,225)
Total Other Financing Sources (Uses) (1,190,225) 496,000 (694,225) NET CHANGE IN FUND BALANCES 3,128,372 61,506 6,814,273 13,743,433 23,747,584 BEGINNING FUND BALANCES 33,894,647 440,678 26,864,809 89,683,648 150,883,782 ENDING FUND BALANCES $37,023,019 $502,184 $33,679,082 $103,427,081 $174,631,366 See accompanying notes to basic financial statements
24 ATTACHMENT 1
CITY OF MANTECA
Reconciliation of the
NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS
with the
CHANGE IN NET POSITION - GOVERNMENTAL ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
The schedule below reconciles the Net Change in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $23,747,584 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capitalized expenditures are therefore added back to fund balance 17,954,268 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $617,527 which has already been allocated to serviced funds) (13,393,575) Contributions of infrastructure and improvements by developers are capitalized in the Statement of Activities, but are not recorded in the Fund Statements because no cash changed hands. 14,559,712
Assets transferred from enterprise funds are added to fund balance 483,409 Assets transferred from internal service funds are added to fund balance 332,559
LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 115,961
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Unavailable revenue 4,614,274
Contracts and accounts payable (277,280)
Allowance for conditional grants (40,998)
Net pension liability and deferred outflows/inflows related to pensions (3,253,532) Total OPEB liability and deferred outflows/inflows related to OPEB (673,958)
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds (1,330,194) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $42,838,230 See accompanying notes to basic financial statements
25 ATTACHMENT 1
CITY OF MANTECA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Property taxes $17,828,585 $17,828,585 $21,126,114 $3,297,529 Sales taxes 14,186,876 11,770,857 14,814,992 3,044,135
Other taxes 5,851,414 4,308,499 5,315,394 1,006,895
Licenses and permits 897,635 919,635 1,061,292 141,657
Fines and forfeitures 301,000 304,980 478,460 173,480
Use of money and property 450,000 450,000 (375,223) (825,223) Revenue from other agencies 349,455 699,455 440,732 (258,723) Charges for current services 7,411,285 8,699,849 9,331,878 632,029 Other revenue 527,650 527,650 422,250 (105,400)
Total Revenues 47,803,900 45,509,510 52,615,889 7,106,379 EXPENDITURES:
Current:
General government:
Legislative 1,387,165 1,439,362 1,103,032 336,330
City Attorney 314,500 920,326 403,263 517,063
Administration 1,206,057 1,276,411 1,548,119 (271,708)
Human resources 1,228,211 1,644,221 1,310,959 333,262
Financial services 1,571,395 1,699,123 1,879,472 (180,349) Total general government 5,707,328 6,979,443 6,244,845 734,598 Community development 365,978 407,899 (41,921)
Public safety:
Police 18,596,432 18,687,065 17,529,839 1,157,226
Fire 8,881,290 10,353,823 11,018,748 (664,925)
Animal control 441,819 450,319 532,467 (82,148)
Total public safety 27,919,541 29,491,207 29,081,054 410,153 Library 133,160 133,160 75,421 57,739
Public works:
Engineering 372,051 372,201 1,043,628 (671,427)
Street maintenance 125,170 474,170 56,822 417,348
Storm drain maintenance and operation 664,806 578,925 361,390 217,535 Vehicle maintenance 450,675 441,312 780,857 (339,545)
Building maintenance 1,411,967 1,258,492 2,654,302 (1,395,810) Total public works 3,024,669 3,125,100 4,896,999 (1,771,899) (Continued)
26 ATTACHMENT 1
CITY OF MANTECA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
Parks and recreation:
Park facility maintenance 5,291,392 2,429,682 2,685,707 (256,025) Senior center 414,881 393,751 329,166 64,585
Total parks and recreation 5,706,273 2,823,433 3,014,873 (191,440) Nondepartmental charges 3,322,940 4,017,902 3,828,297 189,605 Capital outlay 1,714,844 3,687,116 747,904 2,939,212
Total Expenditures 47,528,755 50,623,339 48,297,292 2,326,047
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 275,145 (5,113,829) 4,318,597 9,432,426
OTHER FINANCING SOURCES (USES)
Transfers (out) (531,000) (3,062,000) (1,190,225) 1,871,775 Total Other Financing Sources (Uses) (531,000) (3,062,000) (1,190,225) 1,871,775 NET CHANGE IN FUND BALANCE ($255,855) ($8,175,829) 3,128,372 $11,304,201 BEGINNING FUND BALANCE 33,894,647
ENDING FUND BALANCE $37,023,019
See accompanying notes to basic financial statements
27 ATTACHMENT 1
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ATTACHMENT 1
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City has determined all of its enterprise funds to be major funds in fiscal 2021, as identified below.
WATER FUND
Accounts for the provision of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance and billing and collection.
SEWER FUND
Accounts for the provision of sewer services to residents of the City and some residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.
SOLID WASTE FUND
Accounts for the provision of solid waste collection services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.
GOLF FUND
Accounts for the operations of the City’s municipal golf course. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection. 29 ATTACHMENT 1
CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Total Funds
ASSETS
Current assets
Cash and investments (Note 3) $38,035,703 $54,088,473 $3,348,346 $350,309 $95,822,831 $16,267,962 Accounts receivables (net of allowance for
estimated uncollectible accounts) 9,276,683 4,844,986 1,789,521 19,286 15,930,476 19,326 Total current assets 47,312,386 58,933,459 5,137,867 369,595 111,753,307 16,287,288 Non-current assets
Restricted cash and investments (Note 3) 5,249,776 11,313,316 16,563,092 Advances to other funds (Note 4C) 453,082 346,567 799,649 Employee notes receivable (Note 6) 29,555
Capital assets not being depreciated (Note 7) 16,207,656 19,554,850 1,233,442 1,022,403 38,018,351 219,715 Capital assets (net of accumulated
depreciation) (Note 7) 73,591,739 151,732,081 5,287,650 859,213 231,470,683 952,408 Total non-current assets 95,502,253 182,946,814 6,521,092 1,881,616 286,851,775 1,201,678 Total Assets 142,814,639 241,880,273 11,658,959 2,251,211 398,605,082 17,488,966
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 1,483,711 1,884,954 1,667,798 208,338 5,244,801 525,802 Deferred outflows related to OPEB (Note 11) 602,687 704,682 672,619 202,134 2,182,122 65,056 Total deferred outflows of resources 2,086,398 2,589,636 2,340,417 410,472 7,426,923 590,858
LIABILITIES
Current liabilities
Accounts payable 1,162,540 872,099 414,777 31,619 2,481,035 302,359 Accrued liabilities 2,436,035
Refundable deposits 1,440,481 411,202 17,986 1,869,669 979 Interest payable 654,876 131,316 786,192
Compensated absences (Note 1G) 4,356,518
Estimated claims liability (Note 13) 777,600
Revenue bonds (Note 8) 1,480,000 1,655,000 3,135,000
Total current liabilities 4,737,897 3,069,617 432,763 31,619 8,271,896 7,873,491 Long-term liabilities
Contracts payable 3,293,242 13,275,834 16,569,076
Advances from other funds (Note 4C) 3,237,765 7,521,259 10,759,024 Compensated absences (Note 1G) 2,757,976
Estimated claims liability (Note 13) 28,504
Revenue bonds (Note 8) 28,870,886 32,073,018 60,943,904 Net pension liability (Note 10) 8,111,124 10,304,623 9,117,481 1,138,932 28,672,160 2,874,447 Total OPEB liability (Note 11) 3,538,718 4,282,581 4,262,228 649,269 12,732,796 1,065,018 Total long-term liabilities 47,051,735 67,457,315 13,379,709 1,788,201 129,676,960 6,725,945 Total Liabilities 51,789,632 70,526,932 13,812,472 1,819,820 137,948,856 14,599,436
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions (Note 10) 79,048 100,423 88,855 11,099 279,425 28,013 Deferred inflows related to OPEB (Note 11) 258,327 302,045 288,302 86,640 935,314 27,883 Total deferred inflows of resources 337,375 402,468 377,157 97,739 1,214,739 55,896 NET POSITION (Note 9):
Net investment in capital assets 59,448,509 145,037,461 6,521,092 1,881,616 212,888,678 1,172,123 Unrestricted 33,325,521 28,503,048 (6,711,345) (1,137,492) 53,979,732 2,252,369 Total Net Position $92,774,030 $173,540,509 ($190,253) $744,124 $266,868,410 $3,424,492 See accompanying notes to basic financial statements
30 ATTACHMENT 1
CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Total Funds
OPERATING REVENUES
Charges for services $21,103,821 $24,757,696 $14,624,464 $1,689,785 $62,175,766 $2,799,728 Insurance premium contribution from other funds 3,336,706 Miscellaneous 140 121,047 3,035 30,046 154,268 162,257
Total Operating Revenues 21,103,961 24,878,743 14,627,499 1,719,831 62,330,034 6,298,691
OPERATING EXPENSES
Personnel services 4,926,148 6,567,697 5,180,136 1,023,657 17,697,638 1,657,466 Contractual services 332,706 1,186,629 4,005,361 206,417 5,731,113 145,317 Supplies 5,423,945 1,219,890 686,773 27,030 7,357,638 321,195 Utilities 788,686 1,539,987 14,262 159,639 2,502,574 154,581 Repairs and maintenance 162,584 746,618 118,785 115,040 1,143,027 1,517,088 Vehicle maintenance and operations 11,725 47,294 396,455 455,474 Interdepartmental 1,541,730 1,856,886 1,544,435 27,490 4,970,541 292,340 Insurance 164,610 303,940 186,050 25,160 679,760 2,628,286 Claims 418,583
Depreciation (Note 7) 3,958,404 4,357,719 742,900 56,626 9,115,649 617,527 Miscellaneous 70,659 157,053 4,124 2,324 234,160 36,071 Total Operating Expenses 17,381,197 17,983,713 12,879,281 1,643,383 49,887,574 7,788,454 Operating Income (Loss) 3,722,764 6,895,030 1,748,218 76,448 12,442,460 (1,489,763)
NONOPERATING REVENUES (EXPENSES)
Interest income (120,396) 170,066 71,420 4,701 125,791 106,128 Gain on sale of capital assets 2,500 2,500
Loss on sale of capital assets (5,453) (5,453)
Interest (expense) and fiscal charges (1,171,215) (1,714,152) (2,885,367) Intergovernmental grants 126,463 126,463
Settlement revenue 23,000,000 23,000,000
Settlement expenses (8,121,635) (8,121,635)
Net Nonoperating Revenues (Expenses) 13,715,717 (1,544,086) 65,967 4,701 12,242,299 106,128 Income (Loss) Before Contributions and Transfers 17,438,481 5,350,944 1,814,185 81,149 24,684,759 (1,383,635) Capital grants 80,000
Contributions 2,134,952 2,266,764 4,401,716
Transfers in (Note 4A) 388,225 388,225 306,000
Transfers out (Note 4A) (483,409) (483,409) (332,559)
Net Contributions and Transfers 1,651,543 2,654,989 4,306,532 53,441 Change in net position 19,090,024 8,005,933 1,814,185 81,149 28,991,291 (1,330,194) BEGINNING NET POSITION (DEFICIT) 73,684,006 165,534,576 (2,004,438) 662,975 237,877,119 4,754,686 ENDING NET POSITION (DEFICIT) $92,774,030 $173,540,509 ($190,253) $744,124 $266,868,410 $3,424,492 See accompanying notes to basic financial statements
31 ATTACHMENT 1
CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $12,916,038 $24,912,970 $14,166,737 $1,748,869 $53,744,614 $6,308,823 Payments to suppliers (7,983,027) (5,171,812) (5,403,015) (515,396) (19,073,250) (5,086,184) Payments to or on behalf of employees (4,487,529) (5,673,458) (5,188,210) (859,648) (16,208,845) (2,051,598) Internal activity - payments to other funds (1,541,730) (1,856,886) (1,544,435) (27,490) (4,970,541) Receipts from employee notes receivable 28,780
Claims paid (342,713)
Cash Flows from Operating Activities (1,096,248) 12,210,814 2,031,077 346,335 13,491,978 (1,142,892)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental grants 126,463 126,463
Interfund receipts 53,309 187,561 240,870
Settlement receipts 23,000,000 23,000,000
Settlement (expense) (8,121,635) (8,121,635)
Transfers in from other funds 388,225 388,225 306,000
Cash Flows from Noncapital Financing Activities 15,058,137 575,786 15,633,923 306,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets, net (6,134,023) (11,505,734) (3,997,331) (99,239) (21,736,327) (484,147) Proceeds from sale of capital assets 2,500 2,500
Capital grants 80,000
Long-term debt payment - principal (1,410,000) (1,525,000) (2,935,000) Long-term debt payment - interest and fiscal charges (1,399,780) (1,804,601) (3,204,381) Cash Flows from Capital and Related Financing Activities (8,941,303) (14,835,335) (3,997,331) (99,239) (27,873,208) (404,147)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest (120,396) 170,066 71,420 4,701 125,791 106,128 Cash Flows from Investing Activities (120,396) 170,066 71,420 4,701 125,791 106,128 Net Cash Flows 4,900,190 (1,878,669) (1,894,834) 251,797 1,378,484 (1,134,911) Cash and investments at beginning of period 38,385,289 67,280,458 5,243,180 98,512 111,007,439 17,402,873 Cash and investments at end of period $43,285,479 $65,401,789 $3,348,346 $350,309 $112,385,923 $16,267,962 (Continued)
32 ATTACHMENT 1
CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Totals Funds
Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (loss) $3,722,764 $6,895,030 $1,748,218 $76,448 $12,442,460 ($1,489,763) Adjustments to reconcile operating income (loss) to cash flows from operating activities:
Depreciation 3,958,404 4,357,719 742,900 56,626 9,115,649 617,527 Change in assets and liabilities:
Accounts receivables (net of allowance for
estimated uncollectible accounts) (8,694,418) (207,343) (457,770) 29,038 (9,330,493) 17,019 Related party notes receivable 28,780
Prepaid items 2,416
Accounts payable and other accrued expenses (712,161) 454,577 5,803 20,214 (231,567) (60,774) Contracts payable 190,544 (183,408) 7,136
Accrued liabilities (447,223)
Compensated absences 21,154
Claims liability 75,870
Net pension liability, deferred outflows and inflows 200,951 616,349 (273,321) 84,298 628,277 66,448 Total OPEB liability, deferred outflows and inflows 237,668 277,890 265,247 79,711 860,516 25,654 Cash Flows from Operating Activities ($1,096,248) $12,210,814 $2,031,077 $346,335 $13,491,978 ($1,142,892) NONCASH TRANSACTIONS:
Contributions of capital assets, net $2,134,952 $2,266,764 $4,401,716 Retirement of capital assets ($5,453) ($5,453)
Transfer of capital assets to governmental activities ($483,409) ($483,409) ($332,559) Amortization of bond premium $193,315 $84,094 $277,409
See accompanying notes to basic financial statements
33 ATTACHMENT 1
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ATTACHMENT 1
FIDUCIARY FUNDS
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
The Fund is used to account for the activities of the Successor Agency to the former Manteca Redevelopment Agency.
35 ATTACHMENT 1
CITY OF MANTECA
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021
Successor Agency
to the
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and investments (Note 3) $4,559,242
Restricted cash and investments (Note 3) 2,095,030
Accounts receivables (net of allowance for
estimated uncollectible accounts) 250,000
Capital assets, not being depreciated (Note 15C) 3,333,997 Capital assets, being depreciated (net) (Note 15C) 1,865,945 Total Assets 12,104,214
LIABILITIES
Accounts payable 402
Interest payable 691,090
Long-term obligations (Note 15D):
Due in one year 4,190,000
Due in more than one year 96,812,041
Total Liabilities 101,693,533
NET POSITION (DEFICIT)
Held in trust for other purposes ($89,589,319)
See accompanying notes to basic financial statements
36 ATTACHMENT 1
CITY OF MANTECA
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Successor Agency
to the
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $4,982,819
Net investment income 46,507
Other revenue 255,000
Total additions 5,284,326
DEDUCTIONS
Community development 275,165
Depreciation (Note 15C) 125,619
Interest and fiscal charges 2,558,020
Total deductions 2,958,804
CHANGE IN NET POSITION 2,325,522
NET POSITION HELD IN TRUST FOR
OTHER PURPOSES
Beginning of year (91,914,841)
End of year ($89,589,319)
See accompanying notes to basic financial statements
37 ATTACHMENT 1
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ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Manteca was incorporated as a general law city on May 28, 1918. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, sanitation, water, solid waste, culture-recreation, public improvements, planning and zoning, general administration services, and redevelopment.
A. Reporting Entity
The accompanying basic financial statements of the City of Manteca include the financial activities of the City as well as the Manteca Financing Authority, which is controlled by and dependent on the City. While this is a separate legal entity, City Council serves in separate session as its governing body and its financial activities are integral to those of the City. The financial activities have been aggregated and merged (termed “blended”) with those of the City in the accompanying financial statements.
The Manteca Financing Authority is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the City. The Authority has the power to purchase bonds issued by any local agency at public, or negotiated sale, and may sell such bonds to public or private purchasers at public, or negotiated sale. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The financial activities of the Authority are included in the Sewer Enterprise Fund. Financial statements for the Manteca Financing Authority component unit may be obtained from the City of Manteca at 1001 West Center Street, Manteca, California, 95337.
The City of Manteca Housing Authority, formed in February 2011, is a separate government entity whose purpose is to assist with the housing for the City’s low and moderate income residents. The Housing Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Housing Authority. The Housing Authority did not undertake any transactions during fiscal year 2021. Separate financial statements are not issued for the City of Manteca Housing Authority.
The financial statements of the City of Manteca Recreational Facilities, Inc. are excluded from the City’s basic financial statements because the City does not control the Corporation’s daily operations or operating budgets and because the Corporation has provided its own capital.
B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
These Standards require that the financial statements described below be presented. 39 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City and its blended component units). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities, except for interfund services provided and used. Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund category— governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
C. Major Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. Major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund-type. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
GENERAL FUND – The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in another fund. 40 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) LOW AND MODERATE INCOME HOUSING ASSETS FUND – Established to account for revenues and expenditures as a result of the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency and the revenues and expenditures related to the low and moderate income housing program. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
PUBLIC FACILITIES IMPLEMENTATION PLAN FUND - Established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the drainage and transportation elements of the Plan. The sewer and water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds.
The City reported all its enterprise funds as major funds in the accompanying financial statements:
WATER FUND - Accounts for the provision of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, billing and collection.
SEWER FUND - Accounts for the provision of sewer services to residents of the City and some residents of the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, billing and collection.
SOLID WASTE FUND - Accounts for the provision of solid waste collection services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, billing and collection.
GOLF FUND - Accounts for the operations of the City’s municipal golf course. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, capital improvements, maintenance, financing and related debt service, billing and collection.
The City also reports the following fund types:
Internal Service Funds. The funds account for vehicle, equipment, payroll tax benefits and insurance; all of which are provided to other departments on a cost-reimbursement basis.
Fiduciary Funds. Fiduciary Funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The Successor Agency to the Manteca Redevelopment Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. The financial activities of the funds are excluded from the government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements.
41 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting
The government-wide proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured.
Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. In addition, contributions from state and federal agencies, developers and others are recorded as revenue.
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted resources to such programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities.
Those revenues susceptible to accrual are use of money and property revenue, charges for services and fines and penalties. Sales taxes collected and held by the State at year-end on behalf of the City also are recognized as revenue.
Expenditures are also generally recognized under the modified accrual basis of accounting. An exception to this rule is principal and interest on long-term debt, which is not recognized by debt service funds until it is due. Financial resources usually are appropriated in funds responsible for repaying debt for transfer to a debt service fund in the period in which maturing debt principal and interest must be paid. Thus, the liability is recognized by the fund responsible for paying the debt, not the debt service fund.
All Proprietary Funds and Fiduciary Funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred.
E. Revenue Recognition for Water, Sewer and Solid Waste Revenues are recognized based on cycle billings rendered to customers. Revenues for services provided but not billed at the end of a fiscal period are not material and are not accrued.
42 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Property Tax
San Joaquin County assesses properties, and it bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.
Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.
Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. Collection of delinquent accounts is the responsibility of the county, which retains all penalties collected.
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above.
G. Compensated Absences
The liability for compensated absences includes the vested portions of vacation, sick leave and compensated time off, administrative leave and furlough for Safety. For governmental funds, a liability for these amounts is recorded only if they have matured, for example, as a result of employee resignations and retirements.
The remaining amounts are reported as a liability in the Statement of Net Position. Proprietary funds’ liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually.
Changes in compensated absences were as follows:
Beginning Balance $7,093,340
Additions 4,377,672
Payments (4,356,518)
Ending Balance $7,114,494
Current Portion $4,356,518
Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of the governmental activities compensated absences is liquidated primarily by the General Fund.
H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The City has deferred outflows of resources related to pensions and Other Post-Employment Benefits (OPEB) as discussed in Notes 10 and 11.
43 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, which arises under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: accounts receivable and notes receivable. The City also has deferred inflows of resources which arise under the full accrual basis of accounting related to pensions and OPEB as discussed in Notes 10 and 11. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
I. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
J. Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
K. New Funds
The COVID Relief Special Revenue Fund was established during the year ended June 30, 2021 to account for federal grant funding and expenditures dedicated to support the City’s response to COVID-19.
The Innovation and Technology Special Revenue Fund was established during the year ended June 30, 2021 to account for the creation, expansion, and maintenance of a fiber conduit network and future “Smart City” technology initiatives and infrastructure projects throughout the City. 44 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
A. Budgeting Procedures
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through the adoption of a resolution.
4. All budget adjustments are approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the department level for the General Fund and at the Fund level for all other funds.
5. Budgets are adopted for all funds, except the Low and Moderate Income Housing Assets Special Revenue Fund, Street Improvements Special Revenue Fund, Innovation and Technology Special Revenue Fund and the Flood Protection Capital Improvement Fund.
6. Formal budgetary integration is employed as a management control device during the year in all funds.
7. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
B. Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds.
Encumbrances outstanding at year end are reported as a restriction, commitment or assignment of fund balances since they do not constitute expenditures or liabilities and are reappropriated in the following year.
Unexpended appropriations lapse at year end and must be reappropriated in the following year.
45 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (Continued)
C. Expenditures in Excess of Appropriations
The following funds incurred expenditures in excess of appropriations. Sufficient resources were available within each fund to finance these excesses:
Excess of
Expenditures
Over
Fund Appropriations
General Fund:
Administration $271,708
Financial services 180,349
Community development 41,921
Public Safety:
Fire 664,925
Animal control 82,148
Engineering 671,427
Vehicle maintenance 339,545
Building maintenance 1,395,810
Park facility maintenance 256,025
Special Revenue Funds:
Recreation 71,252
Public Safety Endowment Fee 8,999
Public Safety Sales Tax 558,136
Redevelopment Bond Projects 2,617,720
NOTE 3 - CASH AND INVESTMENTS
The City’s dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except Cash with Fiscal Agents so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. Investments are carried at fair value.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit or first trust deed mortgage notes with a value of 150% of the City’s cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the City’s name and places the City ahead of general creditors of the institution pledging the collateral.
46 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
The City’s investments are carried at fair value, as required by generally accepted accounting principles.
The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2021 are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or Agency agreements.
Cash and investments available for City operations $274,128,247 Restricted cash and investments 28,002,146
Total City cash and investments of primary government 302,130,393 Cash and investments in Fiduciary Funds 4,559,242
Restricted cash and investments in Fiduciary Funds 2,095,030 Total cash and investments $308,784,665
Cash and investments as of June 30, 2021 consist of the following:
Cash on hand $3,575
Deposits with financial institutions 58,019,347
Investments 250,761,743
Total cash and investments $308,784,665
Cash and investments are used in preparing Proprietary Fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year. 47 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer United States Treasury Bills, Bonds and Notes 5 years None 100% No Limit Federal Agency or United States Government-
Sponsored Enterprise Obligations 5 years None 100% No Limit Mortgage Pass Through Federal Agency Securities 5 years None 20% No Limit California State and Local Agency Obligations 5 years A (1) No Limit Other State Obligations 5 years A (1) No Limit
Bankers' Acceptances 180 days Highest Category 40% 5% (2) Commercial Paper 270 days Highest Category 40% 5% (3)
Negotiable Certificates of Deposit 5 years A 30% 5% (2) Repurchase Agreements 90 days None 100% 5% (2)
Local Agency Investment Fund n/a None $75 million/account $75 million/account Time Certificates of Deposit 5 years None 25% 5% (2)
Medium-Term Corporation Notes 5 years A 30% 5% (3)
Money Market Funds n/a Highest Category 100% 5% (2)
Local Government Investment Pools n/a None 50% 5% (2)
Supranationals 5 years AA 30% No Limit
Asset-Backed Securities 5 years AA 20% No Limit
(1) Total investments in California State and Local Agency Obligations and Other State Obligations may not exceed 30% of the City's total portfolio.
(2) Total value invested in any one issuer may not exceed 5% of the issuer's net worth. (3) Total value invested in any one issuer may not exceed 5% of the outstanding commercial paper and the medium term notes of any single issuer.
48 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and Successor Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City or Successor Agency fails to meet the obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types and their minimum credit ratings that are authorized for investments held by fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment- type.
Minimum
Maximum Credit
Authorized Investment Type Maturity Quality
United States Treasury Bill, Bonds, Notes 5 years N/A
United States Government Agency Obligations 5 years N/A Federal Securities 5 years N/A
Bankers' Acceptances 30 days to 1 year A-1
Commercial Paper 270 days to 1 year A-1
Certificates of Deposit 30 days to 5 years None to A
Repurchase Agreements None to 30 days A-1
Local Agency Investment Fund n/a Not rated
Money Market Funds n/a AA-m
Investment Agreements None None to AA
State and Municipal Bonds, Notes None Two Highest Categories Pre-refunded Municipal Obligations None None to AAA
State Obligations None A
State Obligations - Direct Short-Term None A-1
State Obligations - Special Revenue Bonds None AA
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.
49 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
12 Months 13 to 24 25 to 36 36 to 60
Investment Type or less Months Months Months Total
Held by City:
U.S. Treasury Notes $22,490,205 $21,569,385 $4,901,406 $48,960,996 U.S. Government Agency Obligations
Non-Callable 14,779,770 17,822,281 32,602,051
Mortgage Pass Through Federal Agency Securities $2,152,075 3,631,761 404,882 352,452 6,541,170 Medium Term Corporate Notes
Callable 3,563,170 2,197,922 1,845,077 7,606,169
Non-Callable 815,187 9,983,682 5,263,140 1,510,447 17,572,456 Negotiable Certificates of Deposit 3,093,819 7,005,807 10,099,626 California Local Agency Investment Fund 35,833,459 35,833,459 Money Market Mutual Funds (U.S. Securities) 35,127 35,127 Supranationals 2,137,247 957,243 3,094,490
Asset-Backed Securities 114,908 2,402,524 6,704,244 8,179,042 17,400,718 Municipal Bonds 1,017,134 3,817,417 703,310 5,537,861
California Asset Management Program 8,147,185 8,147,185 Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 57,330,435 57,330,435 Total Investments $111,085,365 $65,646,052 $58,383,669 $15,646,657 $250,761,743 The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2021, these investments have an average maturity of 291 days.
The City is a participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of CAMP participants to invest certain proceeds of debt issues and surplus funds. CAMP investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share in accordance with GASB 79 requirements. At June 30, 2021, the fair value was approximate to the City’s cost. At June 30, 2021 these investments had an average maturity of 52 days.
50 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
The City, as a CAMP shareholder, may withdraw all or any portion of the funds in its CAMP account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for customary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive payment based on the net asset value of the CAMP pool next determined after termination of the suspension of the right of withdrawal.
Money market funds are available for withdrawal on demand and at June 30, 2021 and have a weighted average maturity of 27 to 29 days.
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2021 for each investment type as provided by Standard and Poor’s investment rating system, except as noted.
Moody's Moody's
Investment Type AAAm/AAA AA+/AA/AA- A+/A/A- A1 A2/A3 Total Held by City:
U.S. Government Agency Obligations
Non-Callable $32,602,051 $32,602,051
6,541,170 6,541,170
Medium Term Corporate Notes
Callable 383,212 $4,860,008 $649,326 $1,713,623 7,606,169 Non-Callable 2,495,218 11,627,955 1,220,989 2,228,294 17,572,456 Money Market Mutual Funds (U.S. Securities) $35,127 35,127 Supranationals 3,094,490 3,094,490
Asset-Backed Securities 17,400,718 17,400,718
Municipal Bonds 1,126,765 2,753,429 1,354,810 5,235,004 California Asset Management Program 8,147,185 8,147,185 Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 57,330,435 57,330,435 Totals $87,134,720 $44,775,080 $17,842,773 $1,870,315 $3,941,917 155,564,805 Not rated:
Negotiable Certificates of Deposit 10,099,626
California Local Agency Investment Fund 35,833,459
Municipal Bonds 302,857
Exempt from credit rating disclosure:
U.S. Treasury Notes 48,960,996
Total Investments $250,761,743
Mortgage Pass Through Federal Agency Securities
51 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
G. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:
Level 1 Level 2 Total
Investments by Fair Value Level:
U.S. Treasury Notes $48,960,996 $48,960,996
U.S. Government Agency Obligations $32,602,051 32,602,051 Mortgage Pass Through Federal Agency Securities 6,541,170 6,541,170 Medium Term Corporate Notes 25,178,625 25,178,625
Negotiable Certificates of Deposit 10,099,626 10,099,626 Supranationals 3,094,490 3,094,490
Asset-Backed Securities 17,400,718 17,400,718
Municipal Bonds 5,537,861 5,537,861
Totals $48,960,996 $100,454,541 149,415,537
Investments Measured at Net Asset Value Per Share:
Held by City:
California Asset Management Program 8,147,185
Investments Measured at Amortized Cost:
Money Market Mutual Funds (U.S. Securities) 35,127
Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 57,330,435
Investments Exempt from Fair Value Hierarchy:
California Local Agency Investment Fund 35,833,459
Total Investments $250,761,743
Investments classified in Level 1 of the fair value hierarchy were valued using quoted prices in active markets. All investments classified in Level 2 of the fair value hierarchy were valued using matrix pricing techniques maintained by various pricing vendors. These prices were obtained from various pricing sources from our custodian bank. The California Local Agency Investment Fund is exempt from classification in the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period.
52 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 3 - CASH AND INVESTMENTS (Continued)
H. Concentration Risk
Significant investments in the securities of any individual issuers, other than U. S. Treasury securities, Local Agency Investment Fund, California Asset Management Program and mutual funds, are set forth below:
Investment Reported
Reporting Unit Issuer Type Amount
Entity Wide Federal Home Loan Mortgage Corporation U.S. Government Agency Obligations $30,591,676 NOTE 4 - INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. During the fiscal year ended June 30, 2021 the transfers were as follows:
Fund Receiving Transfers Fund Making Transfers Amount Transferred Purpose Sewer Enterprise Fund General Fund $388,225 A
Non-Major Governmental Funds General Fund 496,000 B
Internal Service Funds General Fund 306,000 C
$1,190,225
A Transfer 50% of the business license tax collections to lower the PFIP Sewer Fee, in accordance with the 2013 Public Facilities Implementation Plan Update B To fund operations
C To fund information technology, vehicles and equipment In addition, the Water Enterprise Fund and the Vehicle Internal Service Fund transferred capital assets with a net book value of $483,409 and $332,559, respectively, to the governmental activities.
B. Current Interfund Balances
Current interfund balances arise mainly due to the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. These balances are expected to be repaid shortly after the end of the fiscal year. At June 30, 2021, interfund balances were as follows:
Due From Funds Due To Funds Amount
General Fund Non-Major Governmental Funds $893,744
53 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
C. Long-Term Interfund Advances
At June 30, 2021, the funds below had made advances that are not expected to be repaid within the next year. These long-term interfund advances are expected to be repaid out of future developer fees. (Asset) (Liability) Amount of
Fund Making Advance Fund Receiving Advance Advance
General Fund Public Facilities Implementation Plan Fund $1,081,780 Public Facilities Implementation Plan Fund Water Enterprise Fund 3,150,804 Sewer Enterprise Fund 7,248,457
Water Enterprise Fund Public Facilities Implementation Plan Fund 180,280 Sewer Enterprise Fund 272,802
Sewer Enterprise Fund Public Facilities Implementation Plan Fund 259,606 Water Enterprise Fund 86,961
Non-Major Governmental Funds Non-Major Governmental Funds 300,000 Total Advances $12,580,690
Public Facilities Implementation Plan
Advances above in the amount of $12,280,690 have been made between the Public Facilities Improvement Plan, General Fund, Water, and Sewer Funds in coordination with the City’s adopted Public Facilities Implementation Plan. The long-term interfund advances to and from these funds were made in accordance with this Plan and are expected to be repaid out of future developer fees over the next fifteen years.
During the fiscal year 2011 the Public Facilities Implementation Plan Fund made an additional advance to the Sewer Enterprise Fund in the amount of $5,000,000 which is included in the balance above. The advance bears interest at an annual rate of 2%.
Fire Station #5 Advance
During fiscal year 2019 the Development Mitigation Special Revenue Fund made an advance to the Government Building Facilities Capital Projects Fund in the amount of $1,850,000 for the construction of Fire Station #5. Interest on the advance will be calculated on the outstanding balance (principal and unpaid interest) each June 30, beginning on June 30, 2020, based on the LAIF interest rate plus 1%. Loan repayments began July 1, 2019 and will be complete once principal and interest are paid in full. A portion of the loan ($300,000) is expected to be repaid from proceeds from a developer’s future sale of land that had previously been earmarked for the location of Fire Station #5.
D. Internal Balances
Internal balances are presented in the Entity-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.
54 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE
The former Redevelopment Agency engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to expend these funds in accordance with the Agency’s terms. With the dissolution of the Redevelopment Agency as discussed in Note 15, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund. The balances of the notes receivable in the Low and Moderate Income Housing Asset Fund at June 30, 2021 are set forth below:
A. Summary of Notes Receivable and Unavailable Revenue
The City has deferred the recognition of revenues from the proceeds of the Notes. At June 30, 2021, these Notes totaled:
HOPE Shelter $1,206,037
Habitat for Humanity 10,000
Down Payment Assistance Program 1,370,545
Residential Rehabilitation 85,133
First-Time Homebuyer Program 60,000
Mid-Peninsula Housing Coalition 2,500,000
Eden Housing Inc. - Union Court Apartments 2,593,742
Eden Housing Inc. - Senior Housing 1,680,932
Manteca Senior Housing, LLC - Affirmed Housing 750,000
Senior Rehabilitation Loans 17,070
Manteca Atherton Associates - Juniper Apartments 12,750,000 Total notes receivable 23,023,459
Less: Allowance for conditional grants (825,206)
Net long-term notes receivable $22,198,253
Unavailable revenue at June 30, 2021 consisted of the outstanding balances of the above notes.
B. HOPE Shelter
On November 16, 2010, the Agency entered into an Owner Participation and Loan Agreement with HOPE to loan $1,243,440 to fund the construction phase of the rehabilitation of the Shelter. This loan is secured by a deed of trust and bears simple interest of one percent from the date of each disbursement of loan funds, if the new rental units are used for affordable housing for low and moderate income households for fifty-five years after completion of construction. The Agency agreed to forgive the loan after fifty-five years if the facility is used for the stated purpose.
As of June 30, 2021, HOPE had drawn down $1,206,037 of the available loan and no further drawdowns are expected.
55 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE (Continued) C. Habitat for Humanity
In March 1998 the Agency loaned $10,000 to the Habitat for Humanity, to be used toward the purchase of property to construct an affordable housing unit. Habitat has signed a promissory note secured by a deed of trust. The loan only becomes due if the property is not maintained as affordable housing. If the property is used for the stated purpose for thirty years, the City will forgive the loan.
D. Down Payment Assistance Program
The Moderate Income Housing Down Payment Assistance Program was established in 2004 to provide financing for homebuyers with moderate income who are unable to qualify for a home purchase without down payment assistance. At June 30, 2021, loans related to this Program in the amount of $1,370,545 had been extended. These loans are secured by second deeds of trust, and bear no interest. These promissory notes are due if the home is sold, equity is removed, home is non-owner occupied, or after 40 years.
E. Residential Rehabilitation Loans
During fiscal year 2003 the Redevelopment Agency began the Residential Rehabilitation Matching Grant Program under which it made loans to real property owners in the Redevelopment Area for the purpose of making property improvements. The Agency agreed to forgive the loans after ten years based on program provisions; the loans bear eight percent interest due from date of closing applicable only in case of default.
At June 30, 2021, loans receivable under this program totaled $85,133.
F. First-Time Homebuyer Loan Program
In January 2002 the Agency engaged in a First-Time Homebuyer Down Payment Assistance Program designed to encourage home ownership among low-and-moderate-income households. Under this program, an interest free loan up to $60,000 is provided to eligible households to be used as part of the down payment for the purchase of home in the City of Manteca. These promissory notes are secured by second deeds of trust and due forty years from the date the property was purchased. The balance of the notes receivable arising from this program at June 30, 2021 was $60,000.
G. Mid-Peninsula Housing Coalition
In March 2006, the Manteca Redevelopment Agency entered into a loan agreement with the Mid-Peninsula Housing Coalition for affordable housing. Under the terms of the agreement, the Agency loaned $2,500,000 to partially fund the acquisition of the property to be used for the construction of affordable rental housing. The note bears interest of 3% interest. Repayment of the loan will commence on April 30 of the year after the completion of construction of the project. Principal and interest payments will be due annually and equal to 50% of residual receipts, if any, as defined in the loan agreement. The loan is due in full no later than December 31, 2065. The agreement is secured by a deed of trust. Mid-Peninsula Housing Coalition is in default on the loan. The City is in negotiations to resolve the issue.
H. Eden Housing Inc. – Union Court Apartments
On September 1, 2000, the Agency agreed to loan $2,593,742 to Eden Housing Inc., for the acquisition and rehabilitation of the Union Court Apartments. The loan is secured by a second deed of trust, bears interest at one percent and is due in 2055.
56 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 5 - REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE (Continued) I. Eden Housing Inc. – Senior Housing (Almond Terrace)
On June 5, 2000, the Agency agreed to loan Eden Housing Inc. up to $900,000 at three percent interest to assist with the acquisition of two parcels and construction of fifty units of affordable rental housing for verylow-income seniors. On April 17, 2002, the Agency loaned an additional $781,000 to increase the total amount of loan to $1,681,000 in order to help Eden Housing Inc. complete the construction. The loan is secured by a deed of trust. If Eden Housing sells or transfers any of the parcels prior to the June 5, 2030 due date, the unpaid principal and interest on those parcels become due. As of June 30, 2021, Eden Housing had drawn down the loan in the amount of $1,680,932.
J. Manteca Senior Housing Inc. – Affirmed Housing
On March 22, 2007, the Agency agreed to loan Manteca Senior Housing Inc. $750,000 along with a grant of $2,000,000 to be used for the acquisition and development costs for the fifty-two-unit apartment complex available for low income households. The Agency agreed to forgive the loan after fifty-five years based on program provisions; the loan bears a three percent interest due from date of closing applicable only in case of default. If there are residual receipts, the developer must pay to the City fifty percent of the receipts. At June 30, 2021, $750,000 has been drawn down from the loan, and all $2,000,000 of the grant has been drawn down.
K. Senior Rehabilitation Loans
During fiscal year 2010, the Agency began the Senior Rehabilitation Loan Program under which it made loans up to $7,500 to senior citizens in the Redevelopment Area for the purpose of making property improvements. The terms and conditions of the loans are dependent upon the income of the applicants. At June 30, 2021, loans receivable under this program totaled $17,070.
L. Manteca Atherton Associates – Juniper Apartments
On December 21, 2010, the Agency entered into an Owner Participation and Loan Agreement under which it agreed to loan $12,250,000 to Manteca Atherton Associates to finance the construction of the Juniper Apartments, a 153-unit affordable housing complex. The Agreement was amended in March 2011 to increase the loan to $12,750,000, payable as follows: $4,530,644 of the loan is to pay the cost of the City development fees, $4,301,069 is to pay for the cost of acquiring the land and construction costs, and $3,918,287 is to be disbursed upon completion of the project to repay other sources of construction financing. The loan is secured by a deed of trust and bears simple interest of one percent from the date of each disbursement of loan funds. The loan is repayable from residual receipts, as defined in the agreement, beginning twelve months after the issuance of the certificate of occupancy, which was issued on October 10, 2012, and all unpaid principal and interest on the loan is due fifty-five years after the issuance of the certificate of occupancy.
The Agency disbursed the loan to an escrow account from which the developer drew the funds as eligible costs were incurred. The balance of the loan receivable as of June 30, 2021 is $12,750,000.
57 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 5 – REDEVELOPMENT AGREEMENTS AND NOTES RECEIVABLE (Continued) M. Conditional Grants
The City has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the City’s housing stock and/or its supply of low-and-moderate income housing.
Certain of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The City accounts for these loans as conditional grants in the Government-wide financial statements and provides a reserve against their eventual forgiveness using the straight-line method over the life of the respective loan. The balance of the allowance for conditional grants as of June 30, 2021 is $825,206.
NOTE 6 – EMPLOYEE NOTES RECEIVABLE
All full-time City employees who have completed their probationary period are eligible to obtain an interest free loan of up to $3,000 to purchase a computer. All requests for loans are subject to review by the employee’s department manager and must be approved by the Finance Director. Repayment of these loans is handled through payroll deductions which are spread out equally over a three-year period. Employees must repay the outstanding balance of their loans upon ending their employment with the City. As of June 30, 2021, 31 employees had notes totaling $29,555 due to the City.
NOTE 7 – CAPITAL ASSETS
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at estimated acquisition value on the date contributed. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. The City’s practice is to capitalize all assets with costs exceeding the $5,000 threshold.
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets:
Buildings and Improvements 30 years
Machinery and Equipment 5-15 years
Storm Drain 50 years
Streets 30 years
Parks 15-30 years
Sewer Lines and Improvements 50 years
Water Wells and Lines 50 years
Sewer Plant Expansion 10-20 years
Water Rights 25 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. 58 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 7 – CAPITAL ASSETS (Continued)
A. Capital Asset Additions and Retirements
Capital assets activities for the year ended June 30, 2021 were as follows:
Governmental activities
Balance at Balance at
June 30, 2020 Additions Transfers June 30, 2021
Capital assets not being depreciated:
Land and improvements $61,306,179 $61,306,179
Construction in progress 67,932,935 $17,996,672 ($11,010,822) 74,918,785 Total capital assets not being depreciated 129,239,114 17,996,672 (11,010,822) 136,224,964 Capital assets being depreciated:
Buildings and improvements 38,101,108 5,914 5,153,195 43,260,217 Machinery and equipment 23,689,985 435,830 563,028 24,688,843 Storm drain 59,111,720 3,505,082 62,616,802
Streets 236,483,035 7,686,011 5,718,009 249,887,055
Parks 70,690,158 3,368,618 59,999 74,118,775
Total capital assets being depreciated 428,076,006 15,001,455 11,494,231 454,571,692 Less accumulated depreciation for:
Buildings and improvements (14,253,214) (1,108,083) (15,361,297) Machinery and equipment (17,748,852) (1,856,269) (19,605,121) Storm drain (15,525,063) (1,189,729) (16,714,792)
Streets (86,633,620) (7,551,112) (94,184,732)
Parks (28,059,163) (2,305,909) (30,365,072)
Total accumulated depreciation (162,219,912) (14,011,102) (176,231,014) Net capital assets being depreciated 265,856,094 990,353 11,494,231 278,340,678 Governmental activity capital assets, net $395,095,208 $18,987,025 $483,409 $414,565,642
59 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 7 – CAPITAL ASSETS (Continued)
Business-type activities Balance at Balance at
June 30, 2020 Additions Retirements Transfers June 30, 2021 Capital assets not being depreciated:
Land and improvements $4,394,232 $4,394,232
Construction in progress 27,743,419 $20,117,140 ($5,453) ($14,230,987) 33,624,119 Total capital assets not being depreciated 32,137,651 20,117,140 (5,453) (14,230,987) 38,018,351 Capital assets being depreciated:
Sewer lines and improvements 70,429,656 2,266,764 72,696,420 Water wells, pipelines and water rights 130,439,064 2,429,007 5,541 132,873,612 Buildings and improvements 9,199,073 13,676 198,071 9,410,820 Machinery and equipment 22,945,079 1,213,059 2,033,205 26,191,343 Infrastructure 165,424 165,424
Sewer plant expansion 122,717,582 98,397 11,510,761 134,326,740 355,895,878 6,020,903 13,747,578 375,664,359
Less accumulated depreciation for:
Sewer lines and improvements (22,599,062) (1,356,529) (23,955,591) Water wells, pipelines and water rights (56,701,952) (3,578,919) (60,280,871) Buildings and improvements (5,466,457) (219,505) (5,685,962) Machinery and equipment (16,978,551) (1,684,499) (18,663,050) Infrastructure (61,229) (6,567) (67,796)
Sewer plant expansion (33,270,776) (2,269,630) (35,540,406) (135,078,027) (9,115,649) (144,193,676)
Net capital assets being depreciated 220,817,851 (3,094,746) 13,747,578 231,470,683 Total Business-type activity capital assets, net $252,955,502 $17,022,394 ($5,453) ($483,409) $269,489,034 B. Capital Asset Contributions
Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.
60 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 7 – CAPITAL ASSETS (Continued)
C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program was as follows:
Governmental Activities
General government $86,621
Community development 46,179
Public safety 974,097
Public works 2,224,227
Parks and recreation 2,638,075
Streets and highways 7,424,376
Internal Service Funds 617,527
Total Governmental Activities $14,011,102
Business-Type Activities
Water $3,958,404
Sewer 4,357,719
Solid waste 742,900
Golf 56,626
Total Business-Type Activities $9,115,649
NOTE 8 – LONG TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. The City’s debt issues and transactions are summarized below and discussed in detail thereafter.
A. Current Year Transactions and Balances
Original Issue Balance Balance Current
Amount June 30, 2020 Retirements June 30, 2021 Portion
Governmental Activity Debt:
Capital Leases - Direct Borrowing
Fire Engine, 3.55% $580,000 $115,961 $115,961
Total Governmental Activity Debt $580,000 $115,961 $115,961 Business-type Activity Debt:
Sewer Revenue Bonds
Series 2009 Bonds, 4.875-5.75% $19,000,000 $19,000,000 $19,000,000 Series 2012 Refunding Bonds, 2.00 - 4.00% 22,690,000 14,445,000 $1,525,000 12,920,000 $1,655,000 Net premium 1,892,112 84,094 1,808,018
Water Revenue Bonds
Series 2012 Refunding Bonds, 2.00 - 5.00% 35,840,000 27,605,000 1,410,000 26,195,000 1,480,000 Net premium 4,349,201 193,315 4,155,886
Total Business - Type Activity Debt $77,530,000 $67,291,313 $3,212,409 $64,078,904 $3,135,000
61 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 8 – LONG TERM DEBT (Continued)
B. Capital Lease Obligation
On July 1, 2015, the City entered into a $580,000 direct borrowing lease agreement with HSE Leasing LLC for the purchase of a fire engine. The lease interest and principal payments are due semi-annually on each June 23 and December 23 with a final payment on December 23, 2021. The lease contains a provision that in an event of default, the lessor may declare all contract payments and other amounts outstanding immediately due and payable, and the lessor may require the City to return the equipment at the City’s expense or exercise any and all rights and remedies available to it under applicable law in which the City will pay all reasonable fees and expenses incurred by the lessor and those of its attorneys. The final lease payment was made during the fiscal year ended June 30, 2021.
C. Sewer Revenue Bonds
On May 27, 2009 the Manteca Financing Authority issued the 2009 Sewer Revenue Bonds Series 2009 in the amount of $19,000,000 to finance the City’s expansion and upgrade of its Wastewater Quality Control Facility. The 2009 Revenue Bonds are secured on parity with the 2003 Sewer Revenue Bonds Series 2003A and 2003B, by installment payments payable by the City of Manteca under the Installment Sales Agreement dated December 1, 2003 as amended by Amendment 1 dated June 1, 2009. The installment payments are special limited obligations of the City and are secured by a pledge of and lien on the net revenues of the City’s sewer system.
On December 11, 2012, the City issued Sewer Revenue Refunding Bonds, Series 2012 in the original principal amount of $22,690,000 at interest rates that range from 2.00-4.00% to provide for a refunding of the Manteca Financing Authority’s outstanding 2003A and 2003B Sewer Revenue Bonds. During fiscal year 2014, the 2003A and 2003B bonds were called and fully retired. Principal payments are due annually on December 1, with interest payments payable semi-annually on December 1 and June 1 through December 1, 2033. Repayment of these bonds is from a pledge of revenue from the Sewer Enterprise Fund.
The City has pledged future sewer revenues, net of specified operating expenses, to repay the 2009 and 2012 Sewer Revenue Bonds through 2036. Projected net customer revenues are expected to provide coverage over debt service of at least 125% over the life of the bonds. The Sewer Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $47,335,189. The Sewer Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $3,138,916 and $11,422,815, respectively.
The 2009 and 2012 Bonds contain a provision that in an event of default, the Trustee may declare the principal of the bonds, together with all accrued interest at the date of default, immediately due and payable, or exercise any and all rights and remedies available to it under applicable law, including the right to enforce from the City all payments due on the 2009 and 2012 Bonds, and the City will pay all reasonable fees and expenses incurred by the Trustee and those of its attorneys.
On March 8, 2021, Moody’s Investors Service downgraded its underlying rating of the 2012 Bonds from “Aa3” to “A1”. On July 5, 2023, Moody’s withdrew the City’s issuer rating and also withdrew it’s ratings of the 2009 and 2012 Bonds, due to the City’s delay in issuing the audited financial statements. In addition, Fitch Ratings withdrew its AA- rating for the 2009 Bonds for the same reason. 62 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 8 – LONG TERM DEBT (Continued)
D. Water Revenue Bonds
On December 11, 2012, the City issued Water Revenue Refunding Bonds, Series 2012 in the original principal amount of $35,840,000 at interest rates that range from 2.00-5.00% to provide for a refunding of the Manteca Financing Authority’s outstanding 2003A Water Revenue Bonds. During fiscal year 2014, the 2003 Water Revenue Bonds were called and fully retired. Principal payments are due annually on July 1, with interest payments payable semi-annually on July 1 and January 1 through July 1, 2033. Repayment of these bonds is from a pledge of revenue from the Water Enterprise Fund.
The City has pledged future water customer revenues, net of specified operating expenses, to repay the Water Revenue Bonds through 2033. Annual principal and interest payments on the bonds are expected to require less than 125% of net water revenues. The Water Enterprise Fund’s total principal and interest remaining to be paid on the bonds is $35,596,625. The Water Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $2,755,000 and $7,560,772, respectively.
The 2012 Bonds contain a provision that in an event of default, the Trustee may declare the principal of the bonds, together with all accrued interest at the date of default, immediately due and payable, or exercise any and all rights and remedies available to it under applicable law, including the right to enforce from the City all payments due on the 2012 Bonds, and the City will pay all reasonable fees and expenses incurred by the Trustee and those of its attorneys.
As noted in Note 8C above, on July 5, 2023, Moody’s withdrew the City’s issuer rating and also withdrew it’s rating of the 2012 Bonds, due to the City’s delay in issuing the audited financial statements.
E. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt:
For the Year Business-type Activities
Ending June 30 Principal Interest
2022 $3,135,000 $2,823,716
2023 3,310,000 2,679,141
2024 3,525,000 2,508,266
2025 2,910,000 2,347,740
2026 3,110,000 2,205,546
2027-2031 18,530,000 8,602,422
2032-2036 20,060,000 3,548,353
2037 3,535,000 101,630
Total 58,115,000 $24,816,814
Plus: Bond Premiums 5,963,904
Gross Long Term Debt $64,078,904
F. Bond Issuance Costs, Original Issue Discounts and Premiums and Deferred Charge on Refunding For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Any differences between proprietary refunded debt and the debt issued to refund it is amortized over the remaining life of either the refunded debt or the refunding debt, whichever is shorter. 63 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows over all its liabilities and deferred inflows, regardless of fund. Net Position is divided into three captions on the Statement of Net Position.
These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Position which is restricted to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low-and-moderate-income purposes.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.
The City’s fund balances are classified based on spending constraints imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the following order:
Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council. The highest level of formal action of the City Council is an Ordinance. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources.
64 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee, the Finance Director, and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
Detailed classifications of the City’s Fund Balances, as of June 30, 2021, are below:
Special Capital
Revenue Projects
Low and Public
Moderate Facilities Other
General Income Implementation Governmental
Fund Balance Classifications Fund Housing Assets Plan Funds Total Nonspendable:
Items not in spendable form:
Advance to other funds $1,081,780 $1,081,780
Total Nonspendable
Fund Balances 1,081,780 1,081,780
Restricted for:
Health Reimbursement Arrangement 463,902 463,902
Low and Moderate Income Housing Projects $502,184 502,184 Transportation Projects $29,393,120 29,393,120
Development Services Projects 20,362,847 20,362,847
Public Safety Projects 6,068,716 6,068,716
Parks Projects 9,929,563 9,929,563
Major Equipment Purchases 1,128,505 1,128,505
Landscaping and Lighting Projects 1,429,461 1,429,461
City and Public Facilities Projects $33,679,082 32,718,488 66,397,570 Flood protection 3,493 3,493
Innovation and Technology Projects 68,763 68,763
Total Restricted Fund Balances 463,902 502,184 33,679,082 101,102,956 135,748,124 Assigned to:
Capital Projects 2,951,856 2,951,856
Fiscal Stability 12,685,413 12,685,413
Pension 2,537,083 2,537,083
Economic Development 2,500,000 2,500,000
Public Facilities Oversizing 1,970,706 1,970,706
Capital Facilities 1,500,000 1,500,000
Technology 1,500,000 1,500,000
Total Assigned Fund Balances 22,693,202 2,951,856 25,645,058 Unassigned:
General Fund 12,784,135 12,784,135
Fund balance deficits (627,731) (627,731)
Total Unassigned Fund Balances 12,784,135 (627,731) 12,156,404 Total Fund Balances $37,023,019 $502,184 $33,679,082 $103,427,081 $174,631,366 65 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
C. Minimum Fund Balance Policies and Stabilization and Contingency Arrangements The objective of the City’s Fund Balance Reserve Policy (Resolution 2020-111, adopted by Council action on June 16, 2020) is to establish adequate levels of fund balance reserve that will provide the City the resources necessary for financial stabilization, particularly during times of unforeseen emergencies and economic downturns. Industry best practices were used in establishing fund balance reserve levels including a target range for General Fund Operating Reserves and Emergency Reserves (Unassigned Fund Balance) of a combined total of no less than 17% of expenditures and up to 25%, depending upon identified risk factors. The fund balance reserve level should be set such that the fund balance reserve can withstand at least two negative budgetary events. The goal of the Policy is to maintain reserves at or near the 25% reserve. A planned draw down of the unassigned fund balance should not exceed 3% of the budgeted revenues unless determined necessary by the City Manager and approved by a vote of the Council. Fund balance reserves should be funded at 100% at June 30th each year if sufficient funds are available. If sufficient funds are not available, a plan to replenish the reserves back to the minimum required amount within five years, shall be presented to the City Council, by the following year’s budget adoption.
For Enterprise Funds, the target for working capital was established at baseline of 90 days working capital or 25% of operating expenses.
The Reserve Policy created six types of General Fund reserves in order of priority as follows:
Fiscal Stability Reserve: The City will strive to maintain an unrestricted fund balance of at least 25% of operating expenditures in the General Fund based upon the annual adopted budget.
This fund balance reserve is set up to provide for adequately addressing:
• Revenue source stability, local disasters and other financial hardships or downturns in the local or national economy.
• Contingencies for unseen operating or capital needs.
• Dependency of other funds on the General Fund.
• Cash flow requirements.
The target of at least 25% of operating expenses will be determined in conjunction with the City’s budget process and will be established based on the annual adopted budget.
This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.
Circumstances where taking reserves below policy levels would be appropriate include responding to the risks that reserves are intended to mitigate, such as:
• One-time uses in meeting cash-flow needs; closing a projected short-term revenueexpenditure gap; responding to unexpected expenditure requirements or revenue shortfalls; natural disasters and liability reductions, revenue base improvements, productivity improvements and other strategies that will strengthen City revenues or reduce future costs.
66 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
However, reserves should not be used to fund ongoing costs or projected systemic “gaps.” Stated simply, reserves should only be used once, so the use should be restricted to one-time (or shortterm) uses.
In accordance with generally accepted accounting principles, when the unrestricted balance at fiscal year-end meets or is less than this target, the amount will be shown as “assigned” in the City’s audited financial statements.
Pension Stabilization Reserve: The purpose of this reserve is to mitigate the operational impact of employer contribution rate volatility, as well as to set aside funding for strategic opportunities to reduce the City’s pension liability. The City will strive to maintain an assigned fund balance of at least 5% of operating expenditures in the General Fund. This assigned fund balance shall serve as a source of funding for situations included but not limited to:
• Mitigating the impact of a significant year-over-year increase in employer contribution rates due to actions outside of the City’s control, such as low investment returns in the CalPERS portfolio and or changes to actuarial assumptions. • Take advantage of opportunities to make non-recurring payments to CalPERS that will reduce the City’s Pension liabilities, such as paying down or paying off unfunded liabilities earlier than scheduled.
In addition to the Pension Stabilization Reserve, any un-used pension benefits, as a result of vacant positions, budgeted for each fiscal year, will be used to make a one-time payment to pay down the City’s unfunded liability.
Economic Development Reserve: Due to the dissolution of redevelopment agencies, enterprise zones and other incentives in the state, locally designated funds for economic development purposes are needed to promote the development job creation, downtown revitalization, city-wide marketing and other strategies to stimulate the local economy.
The funds for this reserve assignment will come from a pro-rata portion of residual property tax generated from the former redevelopment project areas in excess of State-approved Enforceable Obligations.
At June 30th each year any Economic Development Reserve balance in excess of $2,500,000 will be transferred to the General Fund Unassigned Reserve.
Public Facilities Oversizing Reserve: In June 1994, the City Council adopted Ordinance No. 998, imposing a Business License Tax on the Business of Constructing Residential Dwelling Units in the City. While the revenues generate from this tax are general in nature, the tax was adopted in conjunction with the City's Public Facilities Implementation Plan (PFIP) to fund required public facilities oversizing in the central and “core” areas of the City. 67 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
In February 2013, Council approved the updated PFIP. Per Section 2 (H)(3) of the adopted plan, 50% of the revenue received from this tax is to be transferred to the PFIP Sewer Fund to help lower the PFIP Sewer Fee. The remaining 50% of the revenue received will be assigned to Public Facilities Oversizing Reserve. The use of these funds shall be restricted to projects identified in the City’s adopted Capital Improvement Plan.
Capital Facilities Reserve: The City will pre-fund anticipated capital needs for General Fund Departments by establishing a dedicated assigned fund balance for major capital improvements for City-owned or operated buildings such as roofs, HVAC, parks, irrigation wells and improvements needed to comply with the Americans with Disabilities Act (ADA). This policy is primarily intended for facility capital repairs. Planning for new City facilities shall be governed by the policies set forth in the City's Government Building Facilities Fee study.
The City will establish an amount of 3% of General Fund operating expenditures based on the subsequent year’s budget to be used exclusively for capital items described within the Reserve Policy, with a maximum reserve of $1,500,000.
Technology Reserve: The City will pre-fund major anticipated capital needs for Technology replacement and upgrade needs by establishing a dedicated assigned fund balance reserve to be funded through annual budget appropriations. Major capital needs may include, but are not limited to, Enterprise Resource Planning (ERP) software replacement, Virtual Storage Upgrades/Replacement and Fiber Optic deployment.
The City will establish an amount of 3% of General Fund operating expenditures based upon the subsequent year’s budget to be used exclusively for major hardware and software items described within the Reserve Policy, with a maximum reserve of $1,500,000.
The reserve target and the actual balance of each reserve for the year ended June 30, 2021, which are reported within the assigned fund balance of the General Fund follows:
Minimum or Reserve
Maximum as of
Reserve June 30, 2021
General Fund:
Assigned Fund Balance:
Fiscal Stability $12,685,413 $12,685,413
Pension Stabilization 2,537,083 2,537,083
Economic Development 2,500,000 2,500,000
Public Facilities Oversizing 1,970,706 1,970,706
Capital Facilities 1,500,000 1,500,000
Technology 1,500,000 1,500,000
Total Assigned Fund Balance $22,693,202
68 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
In addition to the General Fund Reserves, the Reserve Policy also established the following:
Public Safety Sales Tax Fund - The City will strive to maintain a fund balance of at least 50% of operating expenditures in the Public Safety Sales Tax Fund consistent with the risk assessment methodology for setting reserve levels developed by the Government Finance Officers Association inadequately addressing:
a) Higher levels of fund balance may be needed if significant revenue sources are subject to instability and downturns in the local or national economy. b) Dependency of the Public Safety Sales Tax Fund on the General Fund.
This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.
Circumstances where taking reserves below policy levels would be appropriate include responding to the risks that reserves are intended to mitigate, such as one-time uses in meeting cash-flow needs; closing a projected short-term revenue-expenditure gap; responding to unexpected revenue shortfalls.
Self Insurance Fund - The City will strive to maintain a fund balance of at least 50% of operating expenditures in the Self Insurance Fund consistent with the risk assessment methodology for setting reserve levels developed by the Government Finance Officers Association in adequately addressing:
a) Higher levels of fund balance may be needed if significant operating expenditures are highly volatile or have unpredictable fluctuations. b) Dependency of the Self Insurance Fund on the General Fund.
This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.
Circumstances where taking reserves below policy levels would be appropriate include mitigating the impact of a significant year-over-year increase in insurance premiums, unanticipated legal expenses due to negotiated settlements, and short-term revenue-expenditure gaps.
The City also established a separate reserve policy for the Development Services Special Revenue Fund:
Development Services Fund - The target maximum reserve level for the Fund’s Restricted Reserve balance is based on six months of currently budgeted expenditures for both the planning and engineering programs and twelve months of budgeted expenditures for the building safety program. The goal is to maintain reserves at or near the maximum end of the range. After the reserve amount has been reached, if the fund balances reserve falls below 50% of the reserve amount, then the plan to replenish the fund to the reserve amount shall be structured over a period not to exceed a three- to five-year period.
69 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
D. Deficit Fund Balances and Accumulated Deficits
At June 30 2021, Community Development Block Grant Special Revenue Fund, Recreation Special Revenue Fund, and the Fire Grants Special Revenue Fund had deficit fund balance of $210,470, $87,985, and $354,077, respectively, and the Solid Waste Enterprise Fund, Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund, Equipment Internal Service Fund and Payroll Tax Benefits Internal Service Fund had deficit net position of $190,253, $89,589,319, $1,638,045 and $12,572, respectively.
NOTE 10 – PENSION PLANS
A. Plan Descriptions and Summary of Balances by Plan
The City has three defined benefit pension plans, a Miscellaneous Plan, a Safety (Police and Fire) Plan, and a Retirement Enhancement Plan. The Miscellaneous Plan is an Agent-Multiple Employer Plan and the Safety Plan is a Cost-Sharing Multiple Employer Plan, both of which are administered by the California Public Employees’ Retirement System (CalPERS). The Retirement Enhancement Plan is an Agent-Multiple Employer Plan administered by the Public Agency Retirement System (PARS). Benefit provisions under the Plans are established by State statute and City Ordinance. The PARS Plan is closed to new participants.
All qualified permanent and probationary employees are eligible to participate in the separate Safety (police and fire) Plan, a cost-sharing multiple employer defined benefit pension plan administered by CalPERS and Miscellaneous (all other) Plan, an agent multiple-employer defined benefit pension plan administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. 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. PARS issues publicly available reports that may be requested from PARS via email at [email protected].
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Miscellaneous and Safety Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office or PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
For the year ended June 30, 2021, total pension expense for the Miscellaneous, Safety and PARS Retirement Enhancement plans amounted to $18,225,551.
70 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Plan:
Net Pension
Liability/
Deferred Proportionate Deferred
Outflows Share of Net Inflows
Plan of Resources Pension Liability of Resources
CalPERS Plans:
Miscellaneous $11,023,122 $60,260,948 $587,274
Safety - Police and Fire 14,237,001 63,941,257 635,542
PARS Retirement Enhancement Plan 675,401 21,513
Total $25,260,123 $124,877,606 $1,244,329
Pension liabilities are liquidated by the funds that have recorded the liability. The long-term portion of the governmental activities pension liabilities are liquidated primarily by the General Fund.
Each Plan is discussed in detail below.
B. CalPERS Miscellaneous Plan
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.
The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:
Miscellaneous
Tier I Tier II PEPRA
Hire date Prior to April 3, 2012 After April 3, 2012 On or after January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of 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 2.0% - 2.7% 1.092% - 2.418% 1.0% - 2.5% Required employee contribution rates 8.00% 7.00% 6.75%
Required employer contribution rates 11.751% 11.751% 11.751% Required UAL Contribution $4,532,912
Beginning in fiscal year 2017, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The City’s required contribution for the unfunded liability was $4,532,912 in fiscal year 2021.
71 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Employees Covered – The following employees were covered by the benefit terms for each Plan as of the most recent actuarial valuation date of June 30, 2019 and as of the measurement date of June 30, 2020:
Miscellaneous
June 30, 2019 June 30, 2020
Inactive employees or beneficiaries currently receiving benefits 278 285 Inactive employees entitled to but not yet receiving benefits 232 251 Active employees 282 279
Total 792 815
As of June 30, 2021, the City had 286 active employees in the Miscellaneous Plan.
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
Net Pension Liability - The City’s net pension liability for the Miscellaneous Plan 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 below.
Changes in the Net Pension Liability - The changes in the Net Pension Liability for the Miscellaneous Plan follows:
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 $179,090,464 $123,926,326 $55,164,138 Changes in the year:
Service cost 3,713,864 3,713,864
Interest on the total pension liability 12,825,762 12,825,762 Differences between actual and expected experience 2,643,438 2,643,438 Changes in assumptions
Changes in benefit terms
Net Plan to Plan Resource Movement
Contribution - employer 6,475,687 (6,475,687)
Contribution - employee (paid by employer) 1,571,752 (1,571,752) Contribution - employee
Net investment income 6,213,521 (6,213,521)
Administrative expenses (174,706) 174,706
Benefit payments, including refunds of employee
contributions (8,419,092) (8,419,092)
Other Miscellaneous Income/ (Expense)
Net changes 10,763,972 5,667,162 5,096,810
Balance at June 30, 2020 $189,854,436 $129,593,488 $60,260,948 72 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability $86,139,982
Current Discount Rate 7.15%
Net Pension Liability $60,260,948
1% Increase 8.15%
Net Pension Liability $38,964,894
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2021, the City recognized pension expense of $9,049,954. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $7,061,971 Differences between actual and expected experience 2,898,988 ($327,370) Changes in assumptions (259,904)
Net differences between projected and actual earnings
on plan investments 1,062,163
Total $11,023,122 ($587,274)
$7,061,971 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Annual
June 30 Amortization
2022 $195,979
2023 1,468,102
2024 1,186,543
2025 523,253
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 73 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
C. CalPERS Safety Plan
The City’s Safety Plan is part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by CalPERS. PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors five rate plans (two fire and three police) within the safety risk pool.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.
The Safety Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:
Safety
First Tier Second Tier PEPRA
Hire date
Prior to
April 3, 2012
After
April 3, 2012
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of 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% 2.4% - 3.0% 2.0% - 2.7% Required employee contribution rates 9% 9% 13.75%
Required employer contribution rates 25.540% 22.397% 13.884% Required UAL Contribution $2,496,819 $8,079 $8,130
Fire
First Tier PEPRA
Hire date
Prior to /After
April 3, 2012
On or after
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Public Monthly for life Monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 2.4% - 3.0% 2.0% - 2.7% Required employee contribution rates 9% 13.75%
Required employer contribution rates 23.558% 13.884%
Required UAL Contribution $1,698,065 $6,383
Police
Beginning in fiscal year 2017, CalPERS collects employer contributions for the cost-sharing plan as a percentage of payroll for the normal cost portion and as a dollar amount for contributions toward the unfunded liability as noted in the table above.
74 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2021, the contributions to the Safety Plan were as follows:
Contributions - employer $7,215,323
Pension Liability, Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions - For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
As of June 30, 2021, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan in the amount of $63,941,257.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2019 and 2020 was as follows:
Total
Proportion - June 30, 2019 0.95585%
Proportion - June 30, 2020 0.95974%
Change - Increase (Decrease) 0.00389%
75 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
For the year ended June 30, 2021, the City recognized pension expense of $9,264,532 for the Safety Plan.
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Safety Plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $7,215,323 Differences between actual and expected experience 4,958,320 Changes in assumptions ($212,990)
Net differences between projected and actual earnings on plan investments 1,389,713
Change in proportion and differences between actual
contributions and proportionate share of contributions 673,645 (422,552) Total $14,237,001 ($635,542)
$7,215,323 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Annual
June 30 Amortization
2022 $1,411,724
2023 2,550,147
2024 1,727,942
2025 696,323
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 each Plan as of the measurement date, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Total
1% decrease 6.15%
Net Pension Liability $89,486,489
Current Discount Rate 7.15%
Net Pension Liability $63,941,257
1% Increase 8.15%
Net Pension Liability $42,978,977
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 76 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
D. Information Common to the Miscellaneous and Safety Plans Actuarial Assumptions – For the measurement period ended June 30, 2020, the total pension liabilities were determined by rolling forward the June 30, 2019 total pension liability. The June 30, 2019 total pension liabilities were based on the following actuarial methods and assumptions:
Miscellaneous and Safety (Fire and Police)
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.75%
Payroll Growth 3.0%
Projected Salary Increase Varies by Entry Age and Service (1) Investment Rate of Return 7.15% (2)
Mortality Rate Table Derived using CalPERS Membership
Data for all Funds (3)
Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.50% thereafter
(1) Depending on age, service, and type of employment
(2) Net of pension plan investment and administrative expenses; including inflation (3) The mortality table used was developed based on CalPERS’ specific data.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the December 2017 experience study report based on CalPERS demographic data from 1997 to 2015 that can be found on the CALPERS Website.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website at www.calpers.ca.gov.
Discount Rate – The discount rate used to measure the total pension liability for the Plan was 7.15%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.
77 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both 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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the expected real rates of return by asset class.
Current
Target Real Return Real Return
Asset Class (a) Allocation Years 1 - 10 (b) Years 11+ (c) Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) In the CalPERS Annual Comprehensive Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
78 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Subsequent Event - Reduction of CalPERS Discount Rate – On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-
21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy approved by the CalPERS Board in 2015, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%.
Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense, but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the CalPERS Board.
These new assumptions will be reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
E. PARS Supplemental Retirement Plan
Benefits Provided - Effective October 1, 2001, the City contracted with the Public Agency Retirement System (PARS), to sponsor a supplemental Retirement Enhancement Plan created in accordance with IRC Section 401(a), which is a qualified agent multiple-employer defined benefit pension plan covering all eligible employees of the City. All eligible employees covered by this plan are fully vested. The Plan is closed to new participants. Eligibility requirements are shown in the table below:
Eligibility Tier I Tier II Tier III Tier IV
City Manager prior to December 31, 2004 X
Department Head prior to December 31, 2004 X
City Manager on or after December 31, 2004 X
Department Head on or after December 31, 2004 X
At least 55 years of age X X X X
5 years of continuous service X X
10 years of continuous service X X
Terminated with City and concurrently retired under
CalPERS under a regular service retirement on or after
October 1, 2002 XXXX
79 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
The retirement benefit for each Tier is as follows:
Retirement Benefit Tier I Tier II Tier III Tier IV
Full-time City service: 3%@55 less CalPERS 2.7%@55 X X
Full-time non-City service: 3%@55 less CalPERS 2%@55 X X 3%@55 less CalPERS 2.7%@55 X X
Full-time City service X X
Also, effective October 1, 2001, the City contracted with PARS to sponsor an Excess Benefit Plan, created in accordance with the IRC Section 415(m), which is a qualified governmental excess benefit arrangement covering all employees participating in the Retirement Enhancement Plan. Benefits are paid in the same form, time, and periods as under the Retirement Enhancement Plan. All eligible employees covered by this plan are fully vested. The Plan is also closed to new participants.
The Plan provides a monthly benefit equal to one-twelfth of the difference between the number of credited service years multiplied by the PARS Benefit Factor and the number of credited service years multiplied by the PERS Benefit Factor. The PARS Benefit Factor is dependent upon the retirement age as shown in the chart below. The PERS Benefit Factor also depends upon the retirement age as discussed in Notes 10B and 10C above. The monthly benefits are also subject to a 2% annual cost of living increase.
PARS Benefit Factor
Age at Age
Retirement Factor
52 2.640%
53 2.760%
54 2.880%
55+ 3.000%
These Plan assets are held by a Trust for the exclusive benefits of plan participants as their beneficiaries.
Assets held under this plan are not the City’s property and are not subject to claims by general creditors of the City.
Employees Covered – As of the June 30, 2020 actuarial valuation date, the following employees were covered by the benefit terms for each Plan:
PARS
Inactive employees or beneficiaries currently receiving benefits 8 Inactive employees entitled to but not yet receiving benefits 0 Active employees 0
Total 8
All Plan participants were retired as of June 30, 2021. 80 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Contributions – The City makes all contributions necessary to fund the benefits available under the Plan.
Employees are not permitted to make any contributions.
The City did not make contributions to the Plan during the fiscal year ended June 30, 2021.
Net Pension Liability - The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions – For the measurement period ended June 30, 2020, the total pension liability was determined using an actuarial valuation as of June 30, 2020. The June 30, 2020 total pension liability was based on the following actuarial methods and assumptions:
PARS Plans
Valuation Date June 30, 2020
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal, Level % of pay
Amortization method Level dollar amount
Amortization period 8-year fixed period for 2020/21
Actuarial Assumptions:
Discount Rate 3.60%
Inflation 2.75%
Investment Rate of Return 3.60%
Mortality, Retirement, Disability, Termination CalPERS 1997-2015 Experience Study Mortality Improvement Scale Post - retirement mortality projected fully generational with Scale MP-2020 Discount Rate - The discount rate used to measure the total pension liability for the Plan was 3.60%. The Plan’s long-term expected rate of return was determined by adding expected inflation to expected longterm real returns and reflecting expected volatility and correlation based upon the investment of all assets in PARS’ diversified Moderately Conservative portfolio.
The table below reflects the expected real rates of return by asset class.
Asset Class Component
Target Allocation
Qualified and NonQualified Assets (a)
Expected
Real Rate
of Return
Global Equity 10.0% 4.82%
Fixed Income 22.0% 1.47%
REITs 0.0% 3.76%
Cash 68.0% 0.06%
Assumed Long-Term Rate of Inflation 2.75%
Expected Long-Term Net Rate of Return, Rounded 3.60%
(a) Qualified assets invested in PARS-Moderately
Conservative Trust. Non-Qualified assets in cash.
Rate of return developed based on qualified
and non-qualified assets.
81 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Changes in the Net Pension Liability - The changes in the Net Pension Liability for the Plan as of the June 30, 2020 Measurement Date follows:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 $3,107,354 $2,307,094 $800,260 Changes in the year:
Service cost
Interest on the total pension liability 108,975 108,975 Differences between actual and expected experience (83,407) (83,407) Changes in assumptions (54,339) (54,339)
Changes in benefit terms
Contribution - employer
Contribution - employee
Net investment income 105,737 (105,737)
Administrative expenses (9,649) 9,649
Benefit payments, including refunds of employee
contributions (160,537) (160,537)
Net changes (189,308) (64,449) (124,859)
Balance at June 30, 2020 $2,918,046 $2,242,645 $675,401 Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
PARS
1% Decrease 2.60%
Net Pension Liability $1,047,418
Current Discount Rate 3.60%
Net Pension Liability $675,401
1% Increase 4.60%
Net Pension Liability $367,535
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued PARS financial report.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2021, the City recognized pension expense of ($88,935) for the Plan. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions for the Plan from the following sources:
82 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 10 – PENSION PLANS (Continued)
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date
Differences between actual and expected experience
Changes in assumptions
Net differences between projected and actual earnings on plan investments ($21,513)
Total $0 ($21,513)
There were no contributions subsequent to the measurement date reported as deferred outflows of resources that 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 as pension expense as follows:
Year Ended Annual
June 30 Amortization
2022 $1,378
2023 (3,020)
2024 (14,721)
2025 (5,150)
PARS
NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plan Plan Description – The City’s Other Post Employment Benefit Plan is a single-employer defined benefit OPEB plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting Standards Board Statement No. 75.
The City provides postretirement health care benefits to employees who retire in good standing from the City after attaining the age of 50 and to certain employees who retire due to disability. As of June 30, 2021, there were 206 participants receiving these health care benefits.
83 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Benefits Provided – In order to qualify for postemployment medical and dental benefits an employee must retire from the City and maintain enrollment in one of the City’s eligible health plans. In addition, there are eligibility rules and contribution requirements defined in the Memorandum of Understanding (MOU) with each employee group. For all retirements effective as of January 1, 2012 through June 30, 2012, the City-paid contribution for retiree health will be equal to the Minimum Employer Contribution (MEC) as set by CALPERS. For retirements effective on or prior to December 31, 2011, the benefit is set at the amount the employee or retiree was receiving as of December 31, 2011 for health benefits. The eligibility, rules, and Plan Benefits for each MOU and associated benefits are summarized below as of June 30, 2021:
Manteca Police
Officers Association Fire
Manteca Police
Employees
Association
Technical Support
Services General Services Management
Benefit Types Provided Medical only Medical only Medical only Medical only Medical only Medical only Duration of Benefits Lifetime Lifetime Lifetime Lifetime Lifetime Lifetime Required Service:
Basic
Supplemental
Minimum Age 505050505050
Dependent Coverage Yes Yes Yes Yes Yes Yes
City Contribution 100% 100% 100% 100% 100% 100% 100%
City Contribution Cap per Month
(Basic) retirement on or prior to
12/31/2011 $630 for single $631 for single $640 for single $725 for single $725 for single $683 for single $1,170 for two party $1,165 for two party $1,165 for two party $1,390 for two party $1,165 for two party $1,361 for two party $1,440 for family $1,490 for family $1,515 for family $1,800 for family $1,875 for family $1,810 for family City Contribution Cap per Month
(Basic) retirement after 12/31/2011, but
hired on or before 12/31/2011 $675 $675 $675 $675 $675 $675 City Contribution Cap per Month
(Basic) hired after 12/31/2011 $143 $143 $143 $143 $143 $143 Retirement under CALPERS
The City elected to establish a Health Reimbursement Arrangement for Retirees to provide a funding mechanism for the pay-as-you go OPEB benefit during fiscal year 2012. This Health Reimbursement Arrangement is not a trust and is not considered a component unit of the City and has been excluded from these financial statements.
For the year ended June 30, 2021, the City’s contributions to the Plan were $1,890,162.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2020:
Active employees 390
Inactive employees or beneficiaries currently
receiving benefit payments 201
Inactive employees entitled to but not yet
receiving benefit payments 71
Total 662
84 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) B. Total OPEB Liability
Actuarial Methods and Assumptions – The City’s total OPEB liability was measured as of June 30, 2020 and the total OPEB liability was determined by an actuarial valuation dated June 30, 2019, rolled forward to June 30, 2020 using standard update procedures, based on the following actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date June 30, 2020
Measurement Date June 30, 2020
Actuarial Assumptions:
Discount Rate 2.21% (1)
Inflation 2.75%
Payroll Growth 3% (2)
PEMHCA Minimum Increases 4.25%
Contribution Policy No pre-funding
Cap Increases None beyond amounts specified
Mortality Rate CalPERS 1997-2015 Experience Study (3)
Healthcare Trend Rates
Non-Medicare - 7.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076; Medicare (Non-Kaiser) - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076- Medicare (Kaiser) - 5% for 2022, decreasing to an ultimate rate of
4.0% in 2076
Participation at Retirement
Eligible for portion of projected premium covered by cap in retirement year:
90% in 2016, decreasing to an ultimate rate of 50% in 2048 and later years; Eligible for PEMHCA minimum only: 50%
(1) Bond Buyer 20-Bond Index
(2) Merit - Tables from CalPERS 1997-2015 Experience Study (3) Post-retirement mortality projected fully generational with Scale MP-2017 The underlying mortality assumptions were based on the CalPERS 1997-2011 Experience Study and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2016 through June 30, 2017.
Change in Assumptions – The discount rate decreased from 3.50% at June 30, 2019 to 2.21% at June 30, 2020 based on the municipal bond rate as of the measurement date. The medical trend rate decreased for Kaiser Senior Advantage.
85 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) C. Changes in Total OPEB Liability
The changes in the total OPEB liability follows:
Total OPEB
Liability
Balance at June 30, 2019 Measurement Date $35,497,345
Changes Recognized for the Measurement Period:
Service cost 1,323,555
Interest on the total OPEB liability 1,256,947
Changes of assumptions 5,876,460
Actual vs. expected experience 866,800
Benefit payments * (1,816,214)
Net changes 7,507,548
Balance at June 30, 2020 Measurement Date $43,004,893
* Includes $1,350,214 cash benefit payments and $466,000 implied subsidy benefit payments by the City.
D. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate and Healthcare 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 a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
Total OPEB Liability/(Asset)
Current
Discount Rate -1% Discount Rate Discount Rate +1%
(1.21%) (2.21%) (3.21%)
$49,278,766 $43,004,893 $37,932,611
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:
Total OPEB Liability/(Asset)
Healthcare Cost Trend Rates
1% Decrease Current Trend 1% Increase
$40,990,245 $43,004,893 $46,088,576
86 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS
E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $3,450,290. At June 30, 2021, the City reported deferred outflows and 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 $1,890,162 Differences between actual and expected experience 754,229 ($156,572) Changes of assumptions 6,240,996 (826,334)
Total $8,885,387 ($982,906)
$1,890,162 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2022 $864,213
2023 864,213
2024 864,521
2025 864,725
2026 927,382
Thereafter 1,627,265
NOTE 12 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the plan.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under this plan are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements.
87 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 13 – RISK MANAGEMENT
A. Coverage
City employees are covered under a medical and prescriptions policy with coverage limited to $2,000,000 in the aggregate. The City provides group dental and vision coverage to employees through programs which are administered by a service agent. The City pays all dental and vision claims.
On June 1, 2002 the City joined the Municipal Pooling Authority’s workers’ compensation program. The City joined the Authority’s general liability program on January 1, 1998. The Authority provides coverage against the following types of loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies as follows:
Type of Coverage (Deductible) Coverage Limits
Liability ($100,000) $29,000,000
All Risk Fire and Property:
Property ($25,000) 800,000,000
Flood* 25,000,000
Boiler and Machinery ($5,000) 100,000,000
Vehicle Physical Damage ($3,000 police; $2,000 others) 250,000 Cyber Liability ($50,000) 5,000,000
Public Entity Pollution Liability ($100,000) 25,000,000 Government Crime ($2,500) 5,000,000
Workers' Compensation ($0) Statutory Limit
Employment Liability ($50,000) 2,000,000
* $100,000 minimum deductible per occurrence, except Zone A and V, which are subject to a $250,000 deductible per occurrence
The All Risk Fire and Property coverage limit declined from $1 billion in fiscal year 2020 to $800 million in fiscal year 2021.
The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.
The City’s deposits with the Authority are in accordance with formulas established by the Authority. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
Audited financial statements can be obtained from Municipal Pooling Authority, 1911 San Miguel Drive #100, Walnut Creek, CA 94596.
88 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 13 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Insurance Internal Service Fund.
Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims.
The City’s liability for uninsured claims was estimated by management based on prior years’ claims experience as follows:
Workers’
Compensation
Claims
General Liability
Claims Total
Balance June 30, 2019 $533,409 $371,375 $904,784
Net change in:
Liability for current fiscal year claims 83,866 83,866
Liability for prior fiscal years' claims and
claims incurred but not reported (IBNR) 419,729 68,478 488,207 Claims paid (447,973) (298,650) (746,623)
Balance June 30, 2020 505,165 225,069 730,234
Net change in:
Liability for current fiscal year claims 92,265 92,265
Liability for prior years' claims and
claims incurred but not reported (IBNR) 42,743 133,968 176,711 Claims paid (99,372) (93,734) (193,106)
Balance June 30, 2021 $448,536 $357,568 $806,104
Claims liability, due within one year $420,032 $357,568 $777,600 For the fiscal years ended June 30, 2021, 2020, and 2019 the amount of settlements did not exceed insurance coverage.
NOTE 14 – COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by the City’s independent accountants in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
89 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
C. Public Facilities Implementation Plan
The City has developed a Public Facilities Implementation Plan (PFIP) to ensure that public facilities are adequate and constructed in accordance with the adopted master plans for water, sewer, storm drainage and traffic as the City grows and develops in accordance with its General Plan. Development Impact Fees are collected at or near the time of development and are used wherever practical to finance the expansion of infrastructure necessary to accommodate the demand for new capacity. In certain cases, developers may construct public improvements that are in the PFIP and enter into reimbursement agreements with the City. Developers are then granted credit against the fees owed or are reimbursed any remaining amounts owed to the developer by the City when sufficient funds are available from future development impact fees paid by subsequent development that benefit from the available improvements.
As of June 30, 2021, the City had outstanding reimbursement commitments totaling $25,903,613.
D. Orchard Valley Shopping Center Parking Lease Agreement In fiscal 2007, the City entered into a lease agreement with Manteca Lifestyles Center LLC to lease public parking at the Orchard Valley Shopping Center. The lease became effective in fiscal year 2012 and the City is to make annual lease payments by September 1 of each year equal to 55% of the previous fiscal year’s actual local sales taxes generated from the shopping center. Although the lease payments are based on the sales taxes collected, they can be made from any source of legally available funds. If the local sales taxes are insufficient in one year for the City to make the full scheduled lease payment, the shortfall carries to the next year without interest. Payments in excess of the scheduled annual lease payments are credited first to any outstanding shortfall and then against the total amount due under the lease. The total amount of lease payments to be made under the agreement is $61,704,140; however, the agreement terminates in 2047, regardless of whether this amount has been paid to the developer. During fiscal year 2021, payments made to the developer under the agreement were $343,218 and payments to date total $3,638,933.
E. Transient Occupancy Tax Sharing Agreement
In fiscal April 2018, the City entered into a Disposition and Development Agreement (DDA) with a Developer to construct a destination resort (Project). Under the terms of the agreement, the City is to convey land to the Developer for $675,000 in exchange for an agreement to develop the Project on the property. The sales price of the land is to be paid solely using transient occupancy tax revenue (TOT) generated by the Project. Escrow closed on the land in August 2018 and construction of the Project began in fiscal year 2019. Upon the close of escrow, the City will give the Developer a ten-year option to purchase an adjacent property at the fair market value at the time of purchase. For eighteen years following the issuance of a certificate of occupancy for the Project, the City may not provide financial incentives to any other entities for development of a similar project larger than 5,000 square feet.
90 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
In connection with the DDA, the City also entered into a Development Agreement (DA) with the Developer. Under the terms of the DA, beginning when TOT revenue is first received from the Project and continuing for 25 years thereafter, the City will allocate TOT revenue received on a quarterly basis in the following priority:
(1) Pay $2 million each year to the Developer, without interest. (2) Pay the Developer and the City pro-rata for reimbursable fees, amortized over two years, without interest, including any reimbursable fee shortfalls from prior years. Any reimbursable fee shortfalls remaining after two years will roll over to future years until paid in full. Reimbursable fees are any development fees paid by the City or Developer in cash or fee credit to any Non-City Agency in connection with the Project and any development fees paid by the Developer to planning/inspection consultants or to the City, up to $500,000.
(3) Pay the City for the property purchase price, amortized over 10 years, without interest, including any purchase price shortfalls from prior years. Any shortfalls remaining after 10 years will roll over to future years until paid in full. (4) Pay the City for deferred City fees, amortized over 20 years, without interest, including any shortfalls from prior years. Any shortfalls remaining after 20 years will roll over until paid in full. Deferred City fees are fees owed by the Developer to the City in connection with the Project and fees paid by the City to planning/inspection consultants in connection with the Project in excess of the $500,000 paid by the Developer in (2) above. (5) Pay the Developer 75% of the remaining TOT revenue for the first 10 years and 50% for the following 15 years.
Finally, under the terms of the DDA, the City Council may not increase the transient occupancy tax rate applicable to the Project to a rate greater than (a) 12% for 10 years following the issuance of a certificate of occupancy for the Project, or (b) the regional average transient occupancy tax beginning in the 11th year following the issuance of a certificate of occupancy for the Project.
As of June 30, 2021, the deferred fees due from the developer total $10,707,554 , which have been recorded as accounts receivable in the applicable governmental and enterprise funds, which will be paid as the General Fund collects the TOT revenue, as noted above. In addition, the General Fund has recorded a loan receivable in the amount of $675,000 as of June 30, 2021.
Due to the COVID-19 pandemic, although construction of the project began, the grand opening was delayed to June 2021.
F. Sales Tax Sharing Agreement – Furniture Retailer
In June 2018, the City entered into a sales tax sharing agreement with a furniture retailer in the amount of $3,000,000. The agreement became effective in June 2018 and the City is to make semi-annual payments each year equal to 50% of the total sales tax generated by the retailer and received by the City. Although the payments are based on the sales taxes collected, they can be made from any source of legally available funds. The agreement terminates on the date that the City has paid $3,000,000 or ten years from the retail store opening, regardless of the unpaid balance. As of June 30, 2020, construction of the retail furniture store had not started. Due to the COVID-19 emergency, the project was further delayed; however, the project was fully permitted in July 2020 and construction began immediately following. The store opened in June 2021.
91 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
G. Construction Commitments
The City has the outstanding construction commitments totaling $11.6 million as of June 30, 2021.
H. COVID-19 Global Pandemic
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of businesses and shelter in place orders for all but those deemed essential services. While the business disruption is currently expected to be temporary, there is considerable uncertainty around the duration of the closings and shelter in place orders. Although many of the City's services are considered essential, City Hall was closed to the public, certain other services transitioned to online-only and because the City's major revenue sources, including businesses that collect sales taxes and transient occupancy taxes, are directly impacted by these events, it is probable that this matter will continue to negatively impact the City. However, the ultimate financial impact and duration cannot be reasonably estimated at this time.
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.
ABx1 26 and AB1484 created three regulatory authorities, the Successor Agency Oversight Board, State Controller and Department of Finance (DOF), to review former Agency’s asset transfer, obligation payments and wind down activities. ABx1 26 specifically directs the State Controller to review the activities of all redevelopment agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the Redevelopment Agency or, on or after February 1, 2012, to the Successor Agency.
92 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
In fiscal 2011 and 2012, the former Redevelopment Agency transferred $58,959,477 of assets to the City.
ABx1 26 and AB 1484 contain provisions that such transfers are subject to a review by the State Controller’s Office. According to Health and Safety Code 34167.5, if such an asset transfer did occur during that period and the government agency that received the assets is not contractually committed to a third party for the expenditure or encumbrance of those assets, to the extent not prohibited by state and federal law, the Controller shall order the available assets to be returned to the former Redevelopment Agency or, on or after February 1, 2012, to the Successor Agency. As of June 30, 2012, assets totaling $44,129,682, comprised of current assets of $43,670,205 and capital assets of $459,477, were held by the City. During fiscal year 2013, the City returned the current assets of $43,670,205 to the Successor Agency and only the capital assets of $459,477 were held by the City. The City received the results of the State Controller’s asset transfer review in February 2015 that indicates the City is to return the capital assets in the amount of $459,477 to the Successor Agency. Concurrent with the finalization of the asset transfer review, the City began working with the California Department of Finance (DOF) on the Agency’s Long Range Property Management Plan (LRPMP).
On December 17, 2015 the DOF approved the revised LRPMP and the Agency’s use or disposition of all properties listed on the plan. This included the retention by the City of the $459,477 capital asset previously identified in the State Controller’s asset transfer review. Based on this approval, the identified asset will not be returned to the Agency.
Based on the passage of Senate Bill 107, the Agency amended the LRPMP to allow for the retention of one parcel that constituted a lot dedicated solely to public parking. The Oversight Board approved the amended LRPMP on June 29, 2016 and the revised LRPMP was submitted to the DOF for final approval. The final approval was received from the DOF during fiscal year 2017 and the identified parcel was transferred to the City during that fiscal year.
Effective January 31, 2012, the Redevelopment Agency was dissolved. Certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and the remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.
Under the provisions of AB 1484, the City can elect to become the Housing Successor and retain the housing assets. The City elected to become the Housing Successor and on February 1, 2012, certain housing assets were transferred to the City’s Low and Moderate Income Housing Asset Special Revenue Fund.
The activities of the Housing Successor are reported in the Low and Moderate Income Housing Assets Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.
The City also elected to become the Successor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established in April 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which was comprised of seven members, including one member of City Council and one former Redevelopment Agency employee appointed by the Mayor. On July 1, 2018, the duties of the Manteca Oversight Board transferred to a new San Joaquin Countywide Consolidated Oversight Board, which will now be responsible for overseeing the winddown affairs of all Successor Agencies in San Joaquin County, including the Manteca Successor Agency.
93 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.
AB1484 required the Successor Agency to complete two due diligence reviews – one for the low and moderate income housing assets of the Successor Agency (Housing DDR), and a second for all other balances of the Successor Agency (Non-housing DDR). The due diligence reviews are to calculate the balance of unencumbered balances as of June 30, 2012 available to be remitted to the County for disbursement to taxing entities. The Successor Agency submitted both due diligence reviews to the State Department of Finance for review and approval. The Department of Finance approved the Housing DDR in December 2012, which indicated that no funds were available for distribution. The Department of Finance did not initially approve the Non-housing DDR, which indicated that the Successor Agency had an unencumbered balance of $1, and the State made adjustments to the Non-housing DDR and instead made a demand for the return of funds totaling $10,161,469, which was remitted to the County in May 2013. The Successor Agency received its Finding of Completion in May 2013 which means it can now utilize bond proceeds for projects consistent with the original bond covenants.
In addition to the above transactions, the Non-housing DDR indicated that the City was to return unspent bond proceeds held by the Special Apportionment Streets Capital Projects Fund totaling $43,670,205 to the Successor Agency. The City made the transfer during fiscal year 2013.
On October 22, 2013 the Oversight Board approved Bond Proceeds Funding Agreements (Agreements) between the Successor Agency and the City of Manteca in relation to specific bond projects associated with the $43,670,205 in bond proceeds transferred back to the Successor Agency in Fiscal Year 2012-13. The DOF approved the Agreements on November 8, 2013 and December 9, 2013. The Agency included the requests for expenditure of the associated funds on the 2013-14B Recognized Obligation Payment Schedule (ROPS).
Proceeds in the amount of $12,009,030 were transferred from the Successor Agency to the City as of June 30, 2013 and were recorded in the Redevelopment Bonds Project Fund. An additional $500,000 was approved for transfer on the Agency’s 2014-15A ROPS and $1,500,000 was approved for transfer on the Agency’s 2015- 15B ROPS. One of the eligible bond projects listed on the DOF approved 2013-14B ROPS was the reimbursement to the City of Manteca in the amount of $3,864,030 for the land purchased in association with the proposed South County Courthouse and Administration Complex (APN 222-250-060). The original source of funding for the land purchase was the Development Mitigation Fund. During 2016 the Development Mitigation Fund was reimbursed the final land cost in the amount $3,811,408 via an operating transfer from the Redevelopment Bonds Project Fund.
On February 24, 2015 the Oversight Board approved a Consolidated Non-Housing Bond Proceeds Funding Agreement (Agreement) between the Successor Agency and the City of Manteca. This final agreement approved the transfer of all remaining bond proceeds to the City for use on bond qualified expenditures. The remaining bond proceeds was included for approval in the Agency’s 2015-16A ROPS. The DOF approved both the Agreement and the transfer of the remaining bond proceeds as listed on the 2015-16A ROPS on April 15, 2015. All remaining bond proceeds and interest totaling $29,671,675 was transferred from the Agency to the City as of June 30, 2016.
Cash and investments of the Successor Agency as of June 30, 2021 are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2021.
94 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
B. Redevelopment Agreements and Notes Receivable
The Successor Agency assumed the non-housing loans receivable of the Redevelopment Agency as of February 1, 2012. The Redevelopment Agency engaged in programs designed to encourage economic development. Under these programs, grants or loans were provided under favorable terms to developers who agreed to expend these funds in accordance with the Agency’s terms. The balances of the notes receivable arising from these programs at June 30, 2021 are set forth below:
AKF Development, LLC $54,080
Cabral Western Motors 338,040
Total notes receivable 392,120
Less: Allowance for conditional grants (392,120)
Net long-term notes receivable $0
AKF Development, LLC (Spreckels Park)
On April 8, 2003 the Agency loaned an additional $54,080 to AKF Development, LLC, of which $54,080 was for assistance from the Agency’s Fee Reduction Program. This additional loan was to partially finance the construction costs of Sexton Chevrolet Property in order to assist in the elimination of blight in an adjacent to the Project Area and will enhance the viability of the Project Area. The loan bears interest at five percent annual interest, and was due the earliest of the sixth anniversary of the opening of the automobile dealership or August 1, 2009. AKF signed a promissory note secured by a deed of trust. The Agency will forgive repayment of the loan if certain provisions regarding completion of public improvements, job creation, continued business for five years, and sales tax generation are met. As of June 30, 2021, the developer had not met all of the forgiveness provisions of the loan agreement, but the Agency had not yet required repayment of the loan and the principal balance outstanding was $54,080.
Cabral Western Motors
On May 14, 2002 the Agency agreed to loan Cabral Western Motors $338,040 at three percent interest to assist with the expansion of its facility, which includes a $311,000 Forgivable Business Development Loan and a $27,040 Development Fee Reduction Loan. The loans are secured by a second and third deed of trust, respectively. As of June 30, 2021, the principal balance outstanding was $338,040.
Conditional Grants
The Agency has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the Agency’s housing stock and/or its supply of low-and-moderate income housing.
Certain of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The Agency accounts for these loans as conditional grants in the Fiduciary fund financial statements, and provides a reserve against their eventual forgiveness using the straight-line method over the life of the respective loan.
95 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
C. Capital Assets
The Successor Agency assumed the non-housing capital assets of the Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated acquisition value on the date contributed. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the assets constructed, net of interest earned on the invested proceeds over the same period.
Capital assets recorded as of June 30, 2021 comprise:
Balance at Balance at
June 30, 2020 Additions Retirements June 30, 2021
Capital assets not being depreciated:
Land $3,333,997 $3,333,997
Capital assets being depreciated:
Buildings and improvements 3,788,211 3,788,211
Less accumulated depreciation (1,796,647) ($125,619) (1,922,266) Net capital assets being depreciated 1,991,564 (125,619) 1,865,945 Capital assets, net $5,325,561 ($125,619) $5,199,942
D. Long-Term Debt
The Successor Agency assumed the long-term debt and interest-rate swap agreement of the Redevelopment Agency as of February 1, 2012.
1. Current Year Transactions and Balances
All of the long-term debt of the Successor Agency is comprised of Tax Allocation Bonds issued by the Redevelopment Agency. The Bonds are special obligations of the Agency and are secured only by the Agency’s tax increment revenues. Tax Allocation Bond transactions were as follows:
Balance Balance Current
June 30, 2020 Retirements June 30, 2021 Portion
Redevelopment Agency Tax
Allocation Bonds -
Tax Allocation Refunding Bonds Series 2020A and 2020B
Subordinated Tax Allocation Bonds 1.590-4.0% $97,930,000 $1,985,000 $95,945,000 $4,190,000 Plus: Unamortized Bond Premium 5,292,252 235,211 5,057,041 Total Successor Agency Debt $103,222,252 $2,220,211 $101,002,041 $4,190,000
96 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
2. Redevelopment Agency Tax Allocation Bonds
On February 19, 2020, the Successor Agency to the Manteca Redevelopment Agency issued the Series 2020A Tax Allocation Refunding Bonds in the amount of $25,990,000 and the Series 2020B Taxable Tax Allocation Refunding Bonds in the amount of $71,940,000. The proceeds of these bonds were used to refund and defease all of the outstanding bonds that were issued by the former Agency. In addition, a portion of the proceeds from the 2020B Bonds were used to terminate the interest rate swap agreement associated with the 2005 Subordinated Tax Allocation Refunding Bonds, with a swap termination payment of $12,005,000. The 2020A and 2020B Refunding Bonds bear interest rates that range from 3% to 4% and 1.590% to 2.813%, respectively. Interest payments are due on April 1 and October 1 of each year through October 1, 2042. Principal payments are due annually beginning October 1, 2020 through October 1, 2042. As of June 30, 2021, the outstanding balance of the defeased bonds had been fully retired.
The 2020 Bonds contain a provision that in an event of default, the Trustee may declare the principal of the bonds, together with all accrued interest at the date of default, immediately due and payable, or exercise any and all rights and remedies available to it under applicable law, including the right to enforce from the Successor Agency all payments due on the 2020 Bonds, and the Successor Agency will pay all reasonable fees and expenses incurred by the Trustee and those of its attorneys.
The Successor Agency has pledged all future tax increment revenues, for the repayment of the 2020 Tax Allocation Refunding Bonds. The pledge of all future tax increment revenues end upon repayment of the remaining debt service of $131,122,448 for the Bonds, which is scheduled to occur in 2042.
With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. In addition, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. Total property taxes available for distribution to the Successor Agency and other taxing entities for fiscal year 2021 calculated by the County AuditorController was $26,144,403 and the total received by the Successor Agency for fiscal year 2021 debt service, was $4,982,819, which the Agency used to pay the $3,642,216 of fiscal year debt service.
97 ATTACHMENT 1
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
3. Debt Service Requirements
Annual debt service requirements, are shown below:
For the Year
Ending June 30 Principal Interest
2022 $4,190,000 $2,723,702
2023 4,255,000 2,639,891
2024 4,315,000 2,551,099
2025 4,385,000 2,458,104
2026 4,450,000 2,360,709
2027-2031 23,685,000 9,987,960
2032-2036 26,680,000 6,183,260
2037-2041 17,600,000 5,138,541
2042-2043 6,385,000 1,134,182
Total 95,945,000 $35,177,448
Plus Bond Premium 5,057,041
Gross Long Term Debt $101,002,041
E. COMMITMENTS AND CONTINGENCIES
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
98 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability
Service Cost $2,865,004 $2,785,261 $2,929,446 $3,359,127 $3,450,233 $3,662,753 $3,713,864 Interest 9,470,268 9,947,329 10,547,066 11,091,828 11,413,314 12,088,271 12,825,762 Differences between expected and actual experience (606,531) 895,276 280,782 (1,730,389) 2,008,072 2,643,438 Changes in assumptions (2,540,846) 9,610,904 (1,373,783) Changes in benefits
Benefit payments, including refunds of employee contributions (5,192,533) (5,583,081) (6,137,452) (6,508,026) (7,283,995) (7,791,837) (8,419,092) Net change in total pension liability 7,142,739 4,002,132 8,234,336 17,834,615 4,475,380 9,967,259 10,763,972 Total pension liability - beginning 127,434,003 134,576,742 138,578,874 146,813,210 164,647,825 169,123,205 179,090,464 Total pension liability - ending (a) $134,576,742 $138,578,874 $146,813,210 $164,647,825 $169,123,205 $179,090,464 $189,854,436 Plan fiduciary net position
Contributions - employer $3,345,873 $4,021,488 $4,687,535 $4,971,846 $5,489,151 $5,845,005 $6,475,687 Contributions - employee 1,159,125 1,275,356 1,337,368 1,321,071 1,484,945 1,613,156 1,571,752 Net investment income 14,228,681 2,149,298 530,419 10,909,900 9,098,992 7,772,814 6,213,521 Net Plan to Plan Resource Movement (269) (218)
Administrative expenses (109,588) (59,337) (144,277) (168,715) (83,187) (174,706) Other Miscellaneous Income (Expense) (320,393) 269
Benefit payments, including refunds of employee contributions (5,192,533) (5,583,081) (6,137,452) (6,508,026) (7,283,995) (7,791,837) (8,419,092) Net change in plan fiduciary net position 13,541,146 1,753,473 358,533 10,550,514 8,299,716 7,356,002 5,667,162 Plan fiduciary net position - beginning 82,066,942 95,608,088 97,361,561 97,720,094 108,270,608 116,570,324 123,926,326 Plan fiduciary net position - ending (b) $95,608,088 $97,361,561 $97,720,094 $108,270,608 $116,570,324 $123,926,326 $129,593,488 Net pension liability - ending (a)-(b) $38,968,654 $41,217,313 $49,093,116 $56,377,217 $52,552,881 $55,164,138 $60,260,948 Plan fiduciary net position as a percentage of the total pension liability 71.04% 70.26% 66.56% 65.76% 68.93% 69.20% 68.26% Covered payroll $14,222,604 $15,260,582 $15,917,657 $16,420,663 $17,179,599 $20,193,041 $21,471,907 Net pension liability as percentage of covered payroll 273.99% 270.09% 308.42% 343.33% 305.90% 273.18% 280.65% Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation.
Changes in assumptions. GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. In 2016, 2018, 2019 and 2020 there were no changes. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30. This applied for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
100 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2015 2016 2017 2018
Actuarially determined contribution $4,021,488 $4,687,535 $4,021,488 $5,172,358 Contributions in relation to the actuarially determined contributions (4,019,753) (4,687,535) (4,021,488) (5,172,358) Contribution deficiency (excess) $1,735 $0 $0 $0
Covered payroll $15,260,582 $15,917,657 $16,420,663 $17,179,599 Contributions as a percentage of covered payroll 26.35% 29.45% 24.49% 30.11% Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 For the Fiscal Year Ended June 30, 2019 2020 2021
Actuarially determined contribution $5,842,872 $6,477,118 $7,061,971 Contributions in relation to the actuarially determined contributions (5,842,872) (6,477,118) (7,061,971) Contribution deficiency (excess) $0 $0 $0
Covered payroll $20,193,041 $21,471,907 $20,618,181
Contributions as a percentage of covered payroll 28.94% 30.17% 34.25% Notes to Schedule
Valuation date: 6/30/2016 6/30/2017 6/30/2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level percentage of payroll, closed Average remaining amortization period 15 years as of Valuation Date Asset valuation method Market Value of Assets
Inflation 2.75% for 2015 to 2019, 2.625% for 2020 and 2.50% for 2021 Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality Rate Table
* - Fiscal year 2015 was the 1st year of implementation.
The probabilities of Retirement are based on the CalPERS Experience Study.
The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020 and 2021, preretirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
7.50%, for 2015 to 2018, 7.375% for 2019, 7.25% for 2020 and 7.00% for 2021, Net of Pension Plan Investment and Administrative Expenses, includes Inflation.
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
101 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2020 6/30/2021 Plan's proportion of the Net Pension Liability (Asset) 1.07938% 1.03004% 0.95585% 0.93552% 0.95843% 0.95585% 0.95974% Plan's proportion share of the Net Pension Liability (Asset) $40,485,157 $42,442,275 $49,781,654 $55,899,346 $56,236,322 $59,669,242 $63,941,257 Plan's Covered Payroll 11,200,196 12,280,143 12,543,342 12,807,240 13,238,467 14,330,518 17,965,730 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 361.47% 345.62% 396.88% 436.47% 424.79% 416.38% 355.91% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 79.82% 78.40% 74.06% 73.31% 75.26% 75.26% 75.10% * - Fiscal year 2015 was the 1st year of implementation.
Safety Plan
Cost Sharing Multiple-Employer Defined Pension Plan
Last 10 Years*
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
102 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
2015 2016 2017 2018 2019 2020 2021
Actuarially determined contribution $4,331,842 $4,055,568 $4,455,903 $4,959,631 $5,719,302 $6,571,899 $7,215,323 Contributions in relation to the actuarially
determined contributions (4,331,842) (4,055,568) (4,455,903) (4,959,631) (5,719,302) (6,571,899) (7,215,323) Contribution deficiency (excess) $0 $0 $0 $0 $0 $0 $0
Covered payroll $12,280,143 $12,543,342 $12,807,240 $13,238,467 $14,330,518 $17,965,730 $15,113,158 Contributions as a percentage of covered payroll 35.28% 32.33% 34.79% 37.46% 39.91% 36.58% 47.74% * - Fiscal year 2015 was the first year of implementation.
Safety Plan
Cost Sharing Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
103 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
PARS Enhancement Excess Benefit
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability
Service Cost $33,000 $25,000 $8,000 $9,000 $8,901
Interest 122,000 124,000 126,000 134,000 134,821 $107,078 $108,975 Differences between expected and actual experience 53,000 47,056 (83,407) Changes in assumptions 659,042 86,000 (75,860) (54,339) Changes in benefits
Benefit payments, including refunds of employee
contributions (97,000) (99,000) (112,000) (137,000) (139,237) (146,447) (160,537) Net change in total pension liability 50,000 58,000 161,000 6,000 710,583 (115,229) (189,308) Total pension liability - beginning 2,295,000 2,237,000 2,345,000 2,506,000 2,512,000 3,222,583 3,107,354 Total pension liability - ending (a) $2,295,000 $2,345,000 $2,506,000 $2,512,000 $3,222,583 $3,107,354 $2,918,046 Plan fiduciary net position
Contributions - employer $204,000 $245,000 $270,000 $239,000 $400,000 Contributions - employee
Net investment income 110,000 21,000 51,000 80,000 53,127 $124,714 $105,737 Administrative expenses (7,000) (7,000) (8,000) (8,000) (9,143) (9,920) (9,649) Benefit payments, including refunds of employee
contributions (97,000) (99,000) (112,000) (137,000) (139,237) (146,447) (160,537) Net change in plan fiduciary net position 160,000 210,000 201,000 174,000 304,747 (31,653) (64,449) Plan fiduciary net position - beginning 1,499,000 1,289,000 1,659,000 1,860,000 2,034,000 2,338,747 2,307,094 Plan fiduciary net position - ending (b) $1,499,000 $1,659,000 $1,860,000 $2,034,000 $2,338,747 $2,307,094 $2,242,645 Net pension liability - ending (a)-(b) $796,000 $686,000 $646,000 $478,000 $883,836 $800,260 $675,401 Plan fiduciary net position as a percentage of the total pension liability 65.32% 70.75% 74.22% 80.97% 72.57% 74.25% 76.85% Covered payroll $635,597 $653,039 $586,464 $182,068 $186,997 (A) Net pension liability as percentage of covered payroll 125.24% 105.05% 110.15% 262.54% 472.65% n/a n/a Notes to Schedule:
Changes in assumptions. The discount rate was updated. General Inflation was updated to 2.75%. Demographic Assumptions were updated to CalPERS 1997-2015 Experience Study. Mortality improvement scale was updated to Scale MP-2020. * - Fiscal year 2015 was the 1st year of implementation. (A) All Plan participants were retired as of July 1, 2018 Benefit changes. There were no changes in benefits.
104 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
PARS Enhancement Excess Benefit
Agent Multiple-Employer Defined Benefit Pension Plan
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
For the Fiscal Year Ended June 30, 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution $204,000 $280,000 $297,000 $391,000 $0 $97,000 $100,000 Contributions in relation to the actuarially determined contributions (272,689) (246,689) (290,000) (400,000) 000 Contribution deficiency (excess) ($42,689) $7,311 $7,000 ($9,000) $0 $97,000 $100,000 Covered payroll $653,039 $586,464 $182,068 $186,997 $0 (A) $0 (A) $0 (A) Contributions as a percentage of covered payroll 37.78% 46.50% 159.28% 213.91% 0% 0% 0% Notes to Schedule
Valuation date: 6/30/2014 6/30/2015 6/30/2016 6/30/2016 6/30/2017 6/30/2018 6/30/2020 Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry-Age Normal, Level % of pay
Amortization method Level dollar amount
Average remaining amortization period 8-years fixed period for 2020/21 Asset valuation method Investment gains and losses spread over a 5-year rolling period Discount rate 3.60%
Inflation
Projected Salary Increase
Mortality Rate Table CalPERS 1997-2015 Experience Study Mortality Improvement Scale Post - retirement mortality projected fully generational with Scale MP-2020 * - Fiscal year 2015 was the 1st year of implementation. (A) All Plan participants were retired as of July 1, 2018
2.75%
3.00%
105 ATTACHMENT 1
REQUIRED SUPPLEMENTARY INFORMATION
Measurement Date 6/30/17 6/30/18 6/30/19 6/30/20
Total OPEB Liability (1)
Service Cost $1,509,000 $1,263,802 $1,183,810 $1,323,555 Interest 1,059,000 1,235,540 1,299,001 1,256,947
Changes of benefit terms
Differences between expected and actual experience (256,511) 866,800 Changes of assumptions (3,276,000) (1,351,768) 1,523,401 5,876,460 Benefit payments (1,631,000) (1,733,000) (1,781,930) (1,816,214) Net change in total OPEB liability (2,339,000) (841,937) 2,224,282 7,507,548 Total OPEB liability - beginning 36,454,000 34,115,000 33,273,063 35,497,345 Total OPEB liability - ending (a) $34,115,000 $33,273,063 $35,497,345 $43,004,893 Covered-employee payroll $38,034,624 $31,729,215 $39,889,613 $36,097,420 Total OPEB liability as a percentage of covered-employee payroll 89.69% 104.87% 88.99% 119.14% Notes to Schedule:
(1) No assets are accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting Standards Board Statement No. 75.
Benefit changes: No changes.
Changes in assumptions: No Changes.
* Fiscal year 2018 was the first year of implementation.
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS Single-Employer Other Post-Employment Benefit Plan
Last 10 fiscal years*
106 ATTACHMENT 1
SUPPLEMENTARY INFORMATION
ATTACHMENT 1
This Page Left Intentionally Blank
ATTACHMENT 1
MAJOR GOVERNMENTAL FUNDS, OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
PUBLIC FACILITIES IMPLEMENTATION PLAN FUND
This fund was initially established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the Drainage and Transportation elements of the Plan. The Sewer and Water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds 109 ATTACHMENT 1
CITY OF MANTECA
PUBLIC FACILITIES IMPLEMENTATION PLAN FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance
Positive
Budget Actual (Negative)
REVENUES
Use of money and property $267,490 $405,810 $138,320
Charges for current services 7,380,765 10,513,415 3,132,650 Total Revenues 7,648,255 10,919,225 3,270,970
EXPENDITURES
Current:
Public works 593,276 542,994 50,282
Capital outlay 28,704,930 3,412,424 25,292,506
Debt service:
Interest and fiscal charges 67,165 149,534 (82,369)
Total Expenditures 29,365,371 4,104,952 25,260,419
NET CHANGE IN FUND BALANCE ($21,717,116) 6,814,273 $28,531,389 BEGINNING FUND BALANCE 26,864,809
ENDING FUND BALANCE $33,679,082
110 ATTACHMENT 1
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
COMMUNITY DEVELOPMENT BLOCK GRANT
Established to account for projects financed by the Federal Housing and Urban Development Department through San Joaquin County.
POLICE GRANTS
Established to account for the City’s various Police grants. The U.S. Department of Justice Universal Hiring Grants are used to hire additional Patrol officers as well as to provide officers to each of the City’s high school attendance areas for the school’s Resource Officer Program. The Federal Local Law Enforcement Block Grants are used to supplement communications and equipment needs. State grants are used for specific equipment and personnel costs incurred in the implementation of the grant specific programs.
SUPPLEMENTAL LAW ENFORCEMENT SERVICES
Established to account for the Citizens Option for Public Safety (COPS) appropriation pursuant to Assembly Bill 3229. The Manteca police department is using these funds for front-line law enforcement programs.
RECREATION
Established to account for the operations of the City’s recreation program. Funding of these programs is provided through fees collected from those who participate in recreational activities.
STREET IMPROVEMENTS
Established to account for financing of the City’s traffic signal installations and highway interchange.
Financing is provided by specific traffic signal installation and highway interchange fees imposed on developments.
MAJOR EQUIPMENT PURCHASE FEE
Established to account for financing of major equipment utilization by City departments. Financing is provided by specific major equipment purchase fees imposed on developments.
LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
Established to account for the financing of lighting and landscape maintenance districts formed pursuant to the Landscaping and Lighting Act of 1972 and benefit assessment districts formed pursuant to the Benefit Assessment Act of 1982. The City currently has twenty five approved districts.
PUBLIC SAFETY ENDOWMENT FEE
Established to account for funds received from the Public Safety Endowment Fee. This fee is collected as part of negotiated development agreements and the interest from the fee has been designated for the use of funding public safety salaries. 111 ATTACHMENT 1
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
DEVELOPMENT SERVICES
Established to record revenues and expenditures directly related to development services, including planning and building safety.
DEVELOPMENT MITIGATION
Established to account for the collection and use of fees collected as part of negotiated development agreements. These fees include a Development Agreement Fee, and Economic Development Fee, a Public Facilities Fee, a Development Services Fee, a Public Safety Endowment Fee, and a Recreational Amenities Fee.
FEDERAL TRANSIT MANAGEMENT
Established to account for all funding received (federal, state, and local transportation) associated with the formation and operation of a city managed public transit system.
COMMUNITY FACILITIES DISTRICTS
The Community Facilities Districts Fund (CFD) was established to account for the monies collected and special taxes levied in association with the formation of and services associated with Community Facilities Districts.
FIRE GRANTS
The Fire Grants Fund was established to account for the fire grants received by the City. Federal grants are used for specific equipment and personnel costs incurred in the implementation of the grant programs.
PUBLIC SAFETY SALES TAX
Established to account for all proceeds collected from the levying of the Gang and Drug Prevention, 9-1-1 Emergency and Public Safety Improvement Transactions and Use Tax. Taxes received are to be used solely for the public safety services set forth in the Program Guidelines and Public Safety Expenditure Plan. The Public Safety Expenditure Plan may be amended from time to time by a majority vote of the City Council, so long as the funds are utilized for public safety, police and fire protection services.
COVID RELIEF
Established to account for federal grant funding and expenditures dedicated to support the City’s response to COVID-19.
INNOVATION AND TECHNOLOGY
Established during the year ended June 30, 2021 to account for the creation, expansion, and maintenance of a fiber conduit network and future “Smart City” technology initiatives and infrastructure projects throughout the City.
112 ATTACHMENT 1
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
CAPITAL IMPROVEMENT FUNDS:
STATE GASOLINE TAX
Established to account for the construction and maintenance of the street system in Manteca. Financing is provided by the City’s share of state gasoline taxes and State of California under AB2928. The allocations from AB2928 must be spent on local streets and roads maintenance, rehabilitation and reconstruction projects according to the tax levied for that purpose by San Joaquin County.
REGIONAL TRANSPORTATION IMPACT FEES
Established to account for fees collected in association with the Regional Transportation Impact Fee Program (RTIF). The RTIF Program is a County-wide program administered by the San Joaquin Council of Governments as part of a regional effort to mitigate traffic congestion. Improvements to the Regional Transportation Network have been identified in the RTIF Capital Project list. This program collects fees from future residential and non-residential development. Fees collected are used exclusively on identified projects locally and within the region.
MEASURE K
Established to account for the construction and maintenance of the street system in Manteca financed with a 1/2 cent sales tax levied for that purpose by San Joaquin County. The tax was established in 1999, renewed in 2006 and sunsets in 2036.
PARKS
Established to account for the construction and maintenance of all City owned parks. Financing is provided by a special parks improvement fee imposed on developments.
GOVERNMENT BUILDING FACILITIES
Established to account for the financing and construction activities of the Civic Center expansion and other City facilities. Financing is provided by government building facilities fees imposed on developments.
SPECIAL APPORTIONMENT STREETS
Established to account for the construction and maintenance of the street system in Manteca.
Financing is provided through local transportation funds and State and Federal grants.
FLOOD PROTECTION
Established to account for permit payments that are collected for the two-hundred-year flood.
REDEVELOPMENT BONDS PROJECTS
This fund was established to account for the financing and construction activities funded with the taxexempt proceeds from the issuance of the former Manteca Redevelopment Agency’s long-term debt. 113 ATTACHMENT 1
Supplemental
Community Law
Development Enforcement Street
Block Grant Police Grants Services Recreation Improvements ASSETS
Cash and investments $35,326 $450,501 $15,444 $55,075
Restricted cash and investments
Accounts receivables (net of allowance for
estimated uncollectible accounts) $242,894 104,185 3,700 Taxes receivable
Advances to other funds
Total Assets $242,894 $139,511 $450,501 $19,144 $55,075
LIABILITIES
Accounts payable $276 $10,704 $36,488
Contracts payable
Refundable deposits 70,641
Due to other funds 253,088
Unearned revenue
Advances from other funds
Total Liabilities 253,364 10,704 107,129
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 200,000
Total Deferred Inflows of Resources 200,000
FUND BALANCE
Fund balance:
Restricted 128,807 $450,501 $55,075
Committed
Assigned
Unassigned (210,470) (87,985)
Total Fund Balances (210,470) 128,807 450,501 (87,985) 55,075 Total Liabilities and Fund Balances $242,894 $139,511 $450,501 $19,144 $55,075
SPECIAL REVENUE FUNDS
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
114 ATTACHMENT 1
Landscape
Major and Lighting Public Federal Community
Equipment Maintenance Safety Development Development Transit Facilities Fire Purchase Fee District Endowment Fee Services Mitigation Management Districts Grants $1,128,505 $1,448,949 $503,280 $12,013,081 $8,311,109 $2,402,687 111,076 1,499,043 300,000 $3,241,499
300,000
$1,239,581 $1,448,949 $503,280 $13,512,124 $8,911,109 $3,241,499 $2,402,687 $19,488 $294,348 $197,166 $14,847
3,300
286,579 $354,077
19,488 294,348 487,045 14,847 354,077
$111,076 1,466,038 $300,000 2,754,454
111,076 1,466,038 300,000 2,754,454
1,128,505 1,429,461 $503,280 11,751,738 8,611,109 2,387,840 (354,077)
1,128,505 1,429,461 503,280 11,751,738 8,611,109 2,387,840 (354,077) $1,239,581 $1,448,949 $503,280 $13,512,124 $8,911,109 $3,241,499 $2,402,687 (Continued)
SPECIAL REVENUE FUNDS
115 ATTACHMENT 1
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
CAPITAL
SPECIAL REVENUE FUNDS IMPROVEMENT FUNDS
Public Innovation State Regional
Safety COVID and Gasoline Transportation
Sales Tax Relief Technology Tax Impact Fees
ASSETS
Cash and investments $3,321,306 $6,988,990 $67,852 $6,066,492 $17,222,143 Restricted cash and investments
Accounts receivables (net of allowance for
estimated uncollectible accounts) 911 286,476 698,189
Taxes receivable 1,706,594
Advances to other funds
Total Assets $5,027,900 $6,988,990 $68,763 $6,352,968 $17,920,332
LIABILITIES
Accounts payable $41,772 $322,472 $253,552
Contracts payable
Refundable deposits 672,009
Due to other funds
Unearned revenue $6,964,189
Advances from other funds
Total Liabilities 41,772 6,964,189 322,472 925,561
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 698,189
Total Deferred Inflows of Resources 698,189
FUND BALANCE
Fund balance:
Restricted 4,986,128 $68,763 6,030,496 16,296,582
Committed
Assigned
Unassigned 24,801
Total Fund Balances 4,986,128 24,801 68,763 6,030,496 16,296,582 Total Liabilities and Fund Balances $5,027,900 $6,988,990 $68,763 $6,352,968 $17,920,332 116 ATTACHMENT 1
CAPITAL IMPROVEMENT FUNDS
Total
Government Special Redevelopment Nonmajor
Building Apportionment Flood Bonds Governmental
Measure K Parks Facilities Streets Protection Projects Funds $6,707,901 $9,931,859 $24,067,441 $2,525,092 $418,487 $103,681,520 1,356,510 $6,563,207 7,919,717
829,212 819,843 7,027,896 557,844 15,722,768
1,706,594
300,000
$7,537,113 $11,288,369 $24,887,284 $9,552,988 $976,331 $6,563,207 $129,330,599 $526,146 $82 $309,995 $414,994 $2,442,330
2,214 26,192 28,406
1,356,510 562 2,103,022
893,744
6,964,189
$300,000 300,000
526,146 1,358,806 300,000 336,749 414,994 12,731,691
819,843 6,264,383 557,844 13,171,827
819,843 6,264,383 557,844 13,171,827
7,010,967 9,929,563 23,767,441 3,493 $6,563,207 101,102,956 2,951,856 2,951,856
(627,731)
7,010,967 9,929,563 23,767,441 2,951,856 3,493 6,563,207 103,427,081 $7,537,113 $11,288,369 $24,887,284 $9,552,988 $976,331 $6,563,207 $129,330,599 117 ATTACHMENT 1
Supplemental
Community Law
Development Enforcement Street
Block Grant Police Grants Services Recreation Improvements
REVENUES
Licenses and permits
Use of money and property $48 $6,601 $1,063
Revenue from other agencies $114,195 168,087 200,845
Charges for current services $384,720
Other revenue 1,100
Total Revenues 114,195 169,235 207,446 384,720 1,063
EXPENDITURES
Current:
General government 152,156
Community development
Public safety 60,087
Public works
Parks and recreation 1,120,322
Streets and highways
Capital outlay 43,170
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 195,326 60,087 1,120,322
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (81,131) 109,148 207,446 (735,602) 1,063
OTHER FINANCING SOURCES (USES)
Transfers in 496,000
Total Other Financing Sources (Uses) 496,000
NET CHANGE IN FUND BALANCES (81,131) 109,148 207,446 (239,602) 1,063 BEGINNING FUND BALANCES (129,339) 19,659 243,055 151,617 54,012 ENDING FUND BALANCES ($210,470) $128,807 $450,501 ($87,985) $55,075
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
SPECIAL REVENUE FUNDS
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
118 ATTACHMENT 1
SPECIAL REVENUE FUNDS
Landscape
Major and Lighting Public Federal Community
Equipment Maintenance Safety Development Development Transit Facilities Fire Purchase Fee District Endowment Fee Services Mitigation Management Districts Grants $3,685,238
$12,660 $11,255 $9,506 196,922 $123,960 $8,380 $29,591
30,317 85,000 2,576,595
379,905 1,324,106 3,438,896 1,268,286 29,335 $1,222,644 40 37,119 40
392,565 1,335,401 9,506 7,388,492 1,477,246 2,614,310 1,252,275 149,849
5,139,349
8,999 $266,170
105,815 2,066,066
1,188,451 674,917
25,746 79,446 101,900 548,244 7,313
115,961
2,581
118,542 1,214,197 8,999 5,368,644 207,715 2,614,310 682,230 266,170 274,023 121,204 507 2,019,848 1,269,531 570,045 (266,170) 274,023 121,204 507 2,019,848 1,269,531 570,045 (266,170) 854,482 1,308,257 502,773 9,731,890 7,341,578 1,817,795 (87,907) $1,128,505 $1,429,461 $503,280 $11,751,738 $8,611,109 $2,387,840 ($354,077) (Continued)
119 ATTACHMENT 1
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
CAPITAL
SPECIAL REVENUE FUNDS IMPROVEMENT FUNDS
Public Innovation State Regional
Safety COVID and Gasoline Transportation
Sales Tax Relief Technology Tax Impact Fees
REVENUES
Sales taxes $8,694,860
Licenses and permits
Use of money and property 3,624 $24,801 $640 $91,354 $124,982 Revenue from other agencies 1,047,037 3,417,067
Charges for current services 2,562,128
Other revenue 68,123 38
Total Revenues 8,698,484 1,071,838 68,763 3,508,421 2,687,148
EXPENDITURES
Current:
General government
Community development
Public safety 8,296,085 1,047,037
Public works 20,401
Parks and recreation 101,708
Streets and highways 1,862,406 672,009
Capital outlay 331,430 725,800 15,883
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 8,627,515 1,047,037 2,710,315 687,892
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 70,969 24,801 68,763 798,106 1,999,256
OTHER FINANCING SOURCES (USES)
Transfers in
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES 70,969 24,801 68,763 798,106 1,999,256 BEGINNING FUND BALANCES 4,915,159 5,232,390 14,297,326
ENDING FUND BALANCES $4,986,128 $24,801 $68,763 $6,030,496 $16,296,582 120 ATTACHMENT 1
CAPITAL IMPROVEMENT FUNDS
Total
Government Special Redevelopment Nonmajor
Building Apportionment Flood Bonds Governmental
Measure K Parks Facilities Streets Protection Projects Funds $8,694,860
$6,582,755 10,267,993
$59,210 $102,433 83,280 ($17,285) $2,861 875,886
6,244,014 2,480,179 16,363,336
4,638,320 15,248,340
106,460
6,303,224 4,740,753 6,666,035 2,462,894 2,861 51,556,875 302,005
5,139,349
9,678,378
70,693 35,452 2,298,427
251,180 3,336,578
162,702 1,581,169 4,278,286
5,451,641 1,713,972 1,089,579 394,739 $2,617,720 13,146,583 115,961
11,294 13,875
5,685,036 1,965,152 1,136,325 1,975,908 2,617,720 38,309,442 618,188 2,775,601 5,529,710 486,986 2,861 (2,617,720) 13,247,433 496,000
496,000
618,188 2,775,601 5,529,710 486,986 2,861 (2,617,720) 13,743,433 6,392,779 7,153,962 18,237,731 2,464,870 632 9,180,927 89,683,648 $7,010,967 $9,929,563 $23,767,441 $2,951,856 $3,493 $6,563,207 $103,427,081 121 ATTACHMENT 1
CITY OF MANTECA
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
COMMUNITY DEVELOPMENT
BLOCK GRANT POLICE GRANTS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits
Use of money and property $48 $48
Revenue from other agencies $818,072 $114,195 ($703,877) $255,225 168,087 (87,138) Charges for current services
Other revenue 1,100 1,100
Total Revenues 818,072 114,195 (703,877) 255,225 169,235 (85,990)
EXPENDITURES
Current:
General government 524,654 152,156 372,498
Community development
Public safety 158,822 60,087 98,735
Public works
Parks and recreation
Streets and highways
Capital outlay 470,170 43,170 427,000
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 994,824 195,326 799,498 158,822 60,087 98,735
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (176,752) (81,131) 95,621 96,403 109,148 12,745
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($176,752) (81,131) $95,621 $96,403 109,148 $12,745 BEGINNING FUND BALANCES (129,339) 19,659
ENDING FUND BALANCES ($210,470) $128,807
122 ATTACHMENT 1
SUPPLEMENTAL LAW MAJOR EQUIPMENT
ENFORCEMENT SERVICES RECREATION PURCHASE FEE
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $150 $6,601 $6,451 $900 $12,660 $11,760
128,668 200,845 72,177
$409,050 $384,720 ($24,330) 196,000 379,905 183,905
15,000 (15,000)
128,818 207,446 78,628 424,050 384,720 (39,330) 196,900 392,565 195,665 34,922 34,922
1,049,070 1,120,322 (71,252)
144,000 115,961 28,039
7,930 2,581 5,349
34,922 34,922 1,049,070 1,120,322 (71,252) 151,930 118,542 33,388 93,896 207,446 113,550 (625,020) (735,602) (110,582) 44,970 274,023 229,053 496,000 496,000
496,000 496,000
$93,896 207,446 $113,550 ($129,020) (239,602) ($110,582) $44,970 274,023 $229,053 243,055 151,617 854,482
$450,501 ($87,985) $1,128,505
(Continued)
123 ATTACHMENT 1
CITY OF MANTECA
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
LANDSCAPE AND PUBLIC SAFETY
LIGHTING MAINTENANCE DISTRICT ENDOWMENT FEE
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits
Use of money and property $11,255 $11,255 $1,500 $9,506 $8,006 Revenue from other agencies
Charges for current services $1,245,430 1,324,106 78,676 Other revenue 40 40
Total Revenues 1,245,430 1,335,401 89,971 1,500 9,506 8,006
EXPENDITURES
Current:
General government
Community development
Public safety 8,999 (8,999)
Public works
Parks and recreation 2,162,088 1,188,451 973,637
Streets and highways
Capital outlay 145,082 25,746 119,336
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,307,170 1,214,197 1,092,973 8,999 (8,999)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,061,740) 121,204 1,182,944 1,500 507 (993)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($1,061,740) 121,204 $1,182,944 $1,500 507 ($993) BEGINNING FUND BALANCES 1,308,257 502,773
ENDING FUND BALANCES $1,429,461 $503,280
124 ATTACHMENT 1
DEVELOPMENT SERVICES DEVELOPMENT MITIGATION FEDERAL TRANSIT MANAGEMENT Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $2,300,000 $3,685,238 $1,385,238
2,200 196,922 194,722 $62,470 $123,960 $61,490 $2,200 $8,380 $6,180 30,317 30,317 85,000 85,000 12,852,014 2,576,595 (10,275,419) 2,894,545 3,438,896 544,351 1,283,715 1,268,286 (15,429) 112,410 29,335 (83,075) 30,000 37,119 7,119 385,000 (385,000)
5,226,745 7,388,492 2,161,747 1,731,185 1,477,246 (253,939) 12,966,624 2,614,310 (10,352,314) 25,451 149,849 (124,398)
6,284,935 5,139,349 1,145,586
105,964 105,815 149 2,692,453 2,066,066 626,387
79,446 (79,446) 274,500 101,900 172,600 7,439,551 548,244 6,891,307 6,310,386 5,368,644 941,742 380,464 207,715 172,749 10,132,004 2,614,310 7,517,694 (1,083,641) 2,019,848 3,103,489 1,350,721 1,269,531 (81,190) 2,834,620 (2,834,620) (127,500) 127,500
(127,500) 127,500
($1,211,141) 2,019,848 $3,230,989 $1,350,721 1,269,531 ($81,190) $2,834,620 ($2,834,620) 9,731,890 7,341,578
$11,751,738 $8,611,109
(Continued)
125 ATTACHMENT 1
CITY OF MANTECA
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
COMMUNITY
FACILITIES DISTRICTS FIRE GRANTS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits
Use of money and property $29,591 $29,591
Revenue from other agencies $454,294 ($454,294)
Charges for current services $1,126,802 1,222,644 95,842 Other revenue 40 40
Total Revenues 1,126,802 1,252,275 125,473 454,294 (454,294)
EXPENDITURES
Current:
General government
Community development
Public safety 328,374 $266,170 62,204
Public works
Parks and recreation 2,164,786 674,917 1,489,869
Streets and highways
Capital outlay 264,425 7,313 257,112
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,429,211 682,230 1,746,981 328,374 266,170 62,204
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,302,409) 570,045 1,872,454 125,920 (266,170) (392,090)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($1,302,409) 570,045 $1,872,454 $125,920 (266,170) ($392,090) BEGINNING FUND BALANCES 1,817,795 (87,907)
ENDING FUND BALANCES $2,387,840 ($354,077)
126 ATTACHMENT 1
PUBLIC SAFETY SALES TAX COVID RELIEF STATE GASOLINE TAX Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $6,056,047 $8,694,860 $2,638,813
12,500 3,624 (8,876) $24,801 $24,801 $9,500 $91,354 $81,854 $1,047,037 1,047,037 3,061,600 3,417,067 355,467
6,068,547 8,698,484 2,629,937 1,047,037 1,071,838 24,801 3,071,100 3,508,421 437,321 7,720,743 8,296,085 (575,342) 1,047,037 1,047,037
29,000 20,401 8,599
205,746 101,708 104,038
3,774,606 1,862,406 1,912,200
348,636 331,430 17,206 3,305,563 725,800 2,579,763
8,069,379 8,627,515 (558,136) 1,047,037 1,047,037 7,314,915 2,710,315 4,604,600 (2,000,832) 70,969 2,071,801 24,801 24,801 (4,243,815) 798,106 5,041,921 ($2,000,832) 70,969 $2,071,801 24,801 $24,801 ($4,243,815) 798,106 $5,041,921 4,915,159 5,232,390
$4,986,128 $24,801 $6,030,496
(Continued)
127 ATTACHMENT 1
CITY OF MANTECA
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
REGIONAL
TRANSPORTATION IMPACT FEES MEASURE K
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Licenses and permits
Use of money and property $61,100 $124,982 $63,882 $22,600 $59,210 $36,610 Revenue from other agencies 13,929,500 6,244,014 (7,685,486) Charges for current services 2,510,340 2,562,128 51,788 Other revenue 38 38
Total Revenues 2,571,440 2,687,148 115,708 13,952,100 6,303,224 (7,648,876)
EXPENDITURES
Current:
General government
Community development
Public safety
Public works 70,693 (70,693)
Parks and recreation
Streets and highways 16,000 672,009 (656,009) 376,372 162,702 213,670 Capital outlay 14,090,072 15,883 14,074,189 14,439,686 5,451,641 8,988,045 Debt service:
Principal
Interest and fiscal charges
Total Expenditures 14,106,072 687,892 13,418,180 14,816,058 5,685,036 9,131,022
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (11,534,632) 1,999,256 13,533,888 (863,958) 618,188 1,482,146
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($11,534,632) 1,999,256 $13,533,888 ($863,958) 618,188 $1,482,146 BEGINNING FUND BALANCES 14,297,326 6,392,779
ENDING FUND BALANCES $16,296,582 $7,010,967
128 ATTACHMENT 1
GOVERNMENT SPECIAL
PARKS BUILDING FACILITIES APPORTIONMENT STREETS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $4,667,725 $6,582,755 $1,915,030
$9,000 $102,433 $93,433 26,500 83,280 56,780 $24,000 ($17,285) ($41,285) 12,462,891 2,480,179 (9,982,712)
2,664,636 4,638,320 1,973,684
2,673,636 4,740,753 2,067,117 4,694,225 6,666,035 1,971,810 12,486,891 2,462,894 (10,023,997) 100,360 35,452 64,908
232,594 251,180 (18,586)
2,179,452 1,581,169 598,283
2,719,151 1,713,972 1,005,179 715,560 1,089,579 (374,019) 13,043,932 394,739 12,649,193 300,000 300,000
55,000 11,294 43,706
2,951,745 1,965,152 986,593 1,170,920 1,136,325 34,595 15,223,384 1,975,908 13,247,476 (278,109) 2,775,601 3,053,710 3,523,305 5,529,710 2,006,405 (2,736,493) 486,986 3,223,479 ($278,109) 2,775,601 $3,053,710 $3,523,305 5,529,710 $2,006,405 ($2,736,493) 486,986 $3,223,479 7,153,962 18,237,731 2,464,870
$9,929,563 $23,767,441 $2,951,856
(Continued)
129 ATTACHMENT 1
CITY OF MANTECA
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
REDEVELOPMENT BOND PROJECTS
Variance
Positive
Budget Actual (Negative)
REVENUES
Licenses and permits
Use of money and property $75,000 ($75,000)
Revenue from other agencies
Charges for current services
Other revenue
Total Revenues 75,000 (75,000)
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation
Streets and highways
Capital outlay $2,617,720 (2,617,720)
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,617,720 (2,617,720)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 75,000 (2,617,720) (2,692,720)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES $75,000 (2,617,720) ($2,692,720) BEGINNING FUND BALANCES 9,180,927
ENDING FUND BALANCES $6,563,207
130 ATTACHMENT 1
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.
However, internal service funds are still presented separately in the Fund financial statements, including the funds below.
VEHICLE
Established to account for the purchase and replacement of vehicles utilized by City departments.
EQUIPMENT
Established to account for the purchase and replacement of equipment (including Information Systems equipment) utilized by City departments.
PAYROLL TAX BENEFIT ALLOCATION
Established to fund and account for the City’s liability for compensated absences and employee benefits.
INSURANCE
Established to account for the self-insured portion of the City’s workers’ compensation and liability insurance programs.
131 ATTACHMENT 1
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2021
Payroll Tax
Benefit
Vehicle Equipment Allocation Insurance Total
ASSETS
Current Assets:
Cash and investments $468,855 $521,573 $9,638,541 $5,638,993 $16,267,962 Accounts receivable 19,326 19,326
Employee notes receivable 29,555 29,555
Total Current Assets 468,855 521,573 9,668,096 5,658,319 16,316,843 Non-Current Assets:
Capital assets not being depreciated 164,266 55,449 219,715 Capital assets (net of
accumulated depreciation) 390,334 562,074 952,408
Total Non-Current Assets 554,600 617,523 1,172,123
Total Assets 1,023,455 1,139,096 9,668,096 5,658,319 17,488,966
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 415,571 110,231 525,802 Deferred outflows related to OPEB 46,468 18,588 65,056
Total Deferred Outflows of Resources 462,039 128,819 590,858
LIABILITIES
Current Liabilities:
Accounts payable 33,844 97,354 130,139 41,022 302,359
Accrued liabilities 2,436,035 2,436,035
Refundable deposits 979 979
Compensated absences 4,356,518 4,356,518
Estimated claims liability 777,600 777,600
Total Current Liabilities 33,844 97,354 6,922,692 819,601 7,873,491 Long-term Liabilities:
Compensated absences 2,757,976 2,757,976
Estimated claims liability 28,504 28,504
Net pension liability 2,271,838 602,609 2,874,447
Total OPEB Liability 827,930 237,088 1,065,018
Total Long-Term Liabilities 3,099,768 2,757,976 868,201 6,725,945 Total Liabilities 33,844 3,197,122 9,680,668 1,687,802 14,599,436
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 22,141 5,872 28,013 Deferred inflows related to OPEB 19,917 7,966 27,883
Total Deferred Inflows of Resources 42,058 13,838 55,896
NET POSITION
Investment in capital assets 554,600 617,523 1,172,123
Unrestricted 435,011 (2,255,568) (12,572) 4,085,498 2,252,369 Total Net Position $989,611 ($1,638,045) ($12,572) $4,085,498 $3,424,492 132 ATTACHMENT 1
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Payroll Tax
Benefit
Vehicle Equipment Allocation Insurance Total
OPERATING REVENUES
Charges for services $2,799,728 $2,799,728
Insurance premium contribution from other funds $3,336,706 3,336,706 Miscellaneous 162,257 162,257
Total Operating Revenues 2,799,728 3,498,963 6,298,691
OPERATING EXPENSES
Personnel services 1,259,371 $88,892 309,203 1,657,466
Contractual services 21,672 63,108 60,537 145,317
Supplies $20,938 288,265 11,992 321,195
Utilities 148,874 5,707 154,581
Repairs and maintenance 1,509,105 7,983 1,517,088
Interdepartmental 273,440 18,900 292,340
Insurance 32,740 2,595,546 2,628,286
Claims 418,583 418,583
Depreciation 171,398 446,129 617,527
Miscellaneous (3,463) 39,534 36,071
Total Operating Expenses 192,336 3,976,133 152,000 3,467,985 7,788,454 Total Operating Income (Loss) (192,336) (1,176,405) (152,000) 30,978 (1,489,763)
NONOPERATING REVENUES (EXPENSES)
Interest income 1,401 12,180 114,898 (22,351) 106,128
Total Nonoperating Revenues (Expenses) 1,401 12,180 114,898 (22,351) 106,128 Income (Loss) Before Contributions and Transfers (190,935) (1,164,225) (37,102) 8,627 (1,383,635) Capital grants 80,000 80,000
Transfers in 186,000 120,000 306,000
Transfers out (332,559) (332,559)
Net Contributions and Transfers (66,559) 120,000 53,441 Change in Net Position (257,494) (1,044,225) (37,102) 8,627 (1,330,194) BEGINNING NET POSITION 1,247,105 (593,820) 24,530 4,076,871 4,754,686 ENDING NET POSITION $989,611 ($1,638,045) ($12,572) $4,085,498 $3,424,492 133 ATTACHMENT 1
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Payroll Tax
Benefit
Vehicle Equipment Allocation Insurance Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $20,051 $2,806,135 $3,482,637 $6,308,823 Payments to suppliers 11,687 (2,274,189) (2,823,682) (5,086,184) Payments to or on behalf of employees (1,183,263) ($575,126) (293,209) (2,051,598) Receipts from employee notes receivable 28,780 28,780
Claims paid (342,713) (342,713)
Cash Flows from (used by) Operating Activities 31,738 (651,317) (546,346) 23,033 (1,142,892)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 186,000 120,000 306,000
Cash flows from (used by) Noncapital Financing Activities 186,000 120,000 306,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (428,696) (55,451) (484,147) Capital grants 80,000 80,000
Cash Flows from (used by) Capital and Related
Financing Activities (348,696) (55,451) (404,147)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 1,401 12,180 114,898 (22,351) 106,128 Cash Flows from Investing Activities 1,401 12,180 114,898 (22,351) 106,128 Net Cash Flows (129,557) (574,588) (431,448) 682 (1,134,911) Cash and investments at beginning of period 598,412 1,096,161 10,069,989 5,638,311 17,402,873 Cash and investments at end of period $468,855 $521,573 $9,638,541 $5,638,993 $16,267,962 Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss) ($192,336) ($1,176,405) ($152,000) $30,978 ($1,489,763) Adjustments to reconcile operating income to net cash flows from operating activities:
Depreciation 171,398 446,129 617,527
Change in assets and liabilities:
Receivables, net 20,051 6,407 6,887 (16,326) 17,019
Prepaid items 2,416 2,416
Related party notes receivable 28,780 28,780
Accounts and other payables 32,625 (3,556) (3,773) (86,070) (60,774) Accrued liabilities (447,394) 171 (447,223)
Compensated absences 21,154 21,154
Claims liability 75,870 75,870
Net pension liability, deferred outflows and inflows 57,784 8,664 66,448 Total OPEB liability, deferred outflows and inflows 18,324 7,330 25,654 Cash Flows from (used by) Operating Activities $31,738 ($651,317) ($546,346) $23,033 ($1,142,892) NONCASH TRANSACTIONS:
Transfer of capital assets to governmental activities ($332,559) ($332,559) 134 ATTACHMENT 1
STATISTICAL SECTION
This part of the City’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. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balance of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
5. General Revenues by Source
6. General Expenditures by Function
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:
1. Assessed and Estimated Value of Taxable Property
2. Property Tax Rates, All Overlapping Governments
3. Principal Property Taxpayers
4. Property Tax Levies and Collections
5. Manteca Redevelopment Project Area No. 1 – Top Twenty Assessed Values
6. Manteca Redevelopment Project Area No. 2 – Top Twenty Assessed Values
7. Manteca Redevelopment Merged Project Area (2005 Merged Project Amended Area) – Top Twenty Assessed Values
8. Manteca Redevelopment Merged Project Area (2004 Amended Area) – Top Twenty Assessed Values
9. Taxable Sales by Category
10. Direct and Overlapping Sales Tax Rates
11. Principal Sales Tax Payers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:
1. Ratio of Outstanding Debt by Type
2. Computation of Direct and Overlapping Debt
3. Computation of Legal Bonded Debt Margin
4. Revenue Bond Coverage – Water Revenue Bonds
5. Revenue Bond Coverage – Sewer Revenue Bonds
6. Bonded Debt Pledged Revenue Coverage -- Redevelopment Agency Tax Allocation Bonds 135 ATTACHMENT 1
STATISTICAL SECTION (Continued)
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:
1. Demographic and Economic Statistics
2. Principal Employers
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:
1. Full-Time Equivalent City Government Employees by Function
2. Operating Indicators by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
136 ATTACHMENT 1
This Page Left Intentionally Blank
ATTACHMENT 1
CITY OF MANTECA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
June 30,
2012 2013(A) 2014 2015(B) 2016
Governmental activities
Net investment in capital assets $254,330,807 $272,862,137 $271,754,541 $278,800,432 $282,954,575 Restricted 144,103,748 90,527,590 104,193,296 108,825,262 139,014,904 Unrestricted 14,672,681 16,479,375 19,495,181 (41,846,484) (42,549,501) Total governmental activities net position $413,107,236 $379,869,102 $395,443,018 $345,779,210 $379,419,978 Business-type activities
Net investment in capital assets $124,505,612 $128,003,081 $132,768,445 $136,876,673 $144,968,629 Unrestricted 54,957,132 53,338,111 54,770,104 40,706,859 38,202,656 Total business-type activities net position $179,462,744 $181,341,192 $187,538,549 $177,583,532 $183,171,285 Primary government
Net investment in capital assets $378,836,419 $400,865,218 $404,522,986 $415,677,105 $427,923,204 Restricted 144,103,748 90,527,590 104,193,296 108,825,262 139,014,904 Unrestricted 69,629,813 69,817,486 74,265,285 (1,139,625) (4,346,845) Total primary government net position $592,569,980 $561,210,294 $582,981,567 $523,362,742 $562,591,263 (A) The City implemented the provisions of GASB Statement 63 in fiscal year 2013, which replaced the term "net assets" with the term "net position".
(B) The City implemented the provisions of GASB Statement 68 in fiscal year 2015. Amounts prior to 2015 have not been restated.
(C) The City implemented the provisions of GASB Statement 75 in fiscal year 2018. Amounts prior to 2018 have not been restated.
-100
0 100
200
300
400
500
600
700
800
900
Millions
Net investment in capital assets Restricted Unrestricted 138 ATTACHMENT 1
2017 2018(C) 2019 2020 2021
$311,611,351 $327,232,512 $346,055,728 $395,180,359 $414,565,642 139,177,788 153,222,783 159,370,865 149,336,987 173,389,648 (35,156,678) (54,265,195) (54,138,733) (62,776,206) (63,375,920) $415,632,461 $426,190,100 $451,287,860 $481,741,140 $524,579,370 $136,859,563 $157,529,677 $168,685,323 $193,144,500 $212,888,678 51,856,903 43,293,291 52,128,274 44,732,619 53,979,732
$188,716,466 $200,822,968 $220,813,597 $237,877,119 $266,868,410 $448,470,914 $484,762,189 $514,741,051 $588,324,859 $627,454,320 139,177,788 153,222,783 159,370,865 149,336,987 173,389,648 16,700,225 (10,971,904) (2,010,459) (18,043,587) (9,396,188) $604,348,927 $627,013,068 $672,101,457 $719,618,259 $791,447,780 139 ATTACHMENT 1
CITY OF MANTECA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2012 2013(1) 2014 2015(2) 2016
Expenses:
Governmental Activities:
General Government $3,072,865 $3,471,459 $3,662,065 $3,312,873 $3,629,365 Community Development 5,245,747 4,723,211 4,811,707 4,987,786 6,616,224 Public Safety 22,875,613 23,555,968 23,663,325 25,166,890 25,193,524 Library 85,762 156,209 99,369 114,291 118,809
Public Works 3,765,228 3,828,636 4,166,837 5,094,875 4,843,276 Parks and Recreation 6,456,949 6,827,567 7,083,257 7,403,446 8,331,503 Streets and Highways 6,248,464 7,258,013 8,359,402 7,969,409 10,856,381 Interest and Fiscal Charges 3,380,281 148,895 105,935 87,096 101,562 Total Governmental Activities Expenses 51,130,909 49,969,958 51,951,897 54,136,666 59,690,644 Business-Type Activities:
Water 13,328,494 14,818,353 13,936,206 14,009,670 14,996,267 Sewer 13,184,836 14,658,322 13,720,540 13,853,066 14,274,230 Solid Waste 9,105,662 8,949,815 9,591,309 9,900,313 10,566,029 Golf 1,098,871 1,179,120 1,197,545 1,154,179 1,178,770
Total Business-Type Activities Expenses 36,717,863 39,605,610 38,445,600 38,917,228 41,015,296 Total Primary Government Expenses $87,848,772 $89,575,568 $90,397,497 $93,053,894 $100,705,940 Program Revenues:
Governmental Activities:
Charges for Services:
General Government $2,994,366 $3,851,426 $3,482,110 $4,513,841 $4,337,680 Community Development 2,307,275 1,724,184 2,263,202 2,575,570 2,877,168 Public Safety 1,078,717 1,120,531 1,380,990 1,621,244 1,360,473 Public Works 62,029 57,103 177,929 41,889 183,422
Parks and Recreation 2,098,940 2,003,973 2,373,422 2,263,443 2,772,184 Streets and Highways
Operating Grants and Contributions 5,968,148 10,700,485 7,862,956 6,991,694 6,085,529 Capital Grants and Contributions 10,372,326 10,979,228 20,231,150 20,220,600 41,118,815 Total Government Activities Program Revenues 24,881,801 30,436,930 37,771,759 38,228,281 58,735,271 Business-Type Activities:
Charges for Services:
Water 13,143,709 13,400,887 14,300,665 14,240,103 13,901,722 Sewer 17,478,380 17,432,082 18,095,530 19,270,009 19,969,107 Solid Waste 8,206,348 8,446,006 8,443,817 8,827,211 9,131,837 Golf 1,121,220 1,084,478 1,040,365 1,009,100 978,427
Operating Grants and Contributions 55,131
Capital Grants and Contributions 411,377 1,751,102 1,447,128 2,401,413 935,948 Total Business-Type Activities Program Revenue 40,416,165 42,114,555 43,327,505 45,747,836 44,917,041 Total Primary Government Program Revenues $65,297,966 $72,551,485 $81,099,264 $83,976,117 $103,652,312 Net (Expense)/Revenue:
Governmental Activities ($26,249,108) ($19,533,028) ($14,180,138) ($15,908,385) ($955,373) Business-Type Activities 3,698,302 2,508,945 4,881,905 6,830,608 3,901,745 Total Primary Government Net Expense ($22,550,806) ($17,024,083) ($9,298,233) ($9,077,777) $2,946,372 General Revenues and Other
Changes in Net Position:
Governmental Activities:
Taxes:
Property Taxes $16,866,055 $10,674,783 $11,051,871 $13,054,963 $12,633,502 Sales Taxes 10,622,542 11,566,467 12,361,731 13,271,312 14,552,582 Other Taxes 4,195,411 4,493,507 4,792,936 5,109,652 5,006,171 Interest Income 1,607,554 31,395 897,034 744,569 1,635,220 Other Revenue 522,320 1,219,181 775,632 1,484,667 937,712 Developer Contributions 61,962 64,158 40,000 69,231 72,154 Gain From Sale of Capital Assets
Transfers, net (1,606,375) (241,200)
Special Item
Extraordinary item 83,664,129 (43,670,205)
Total Government Activities 117,539,973 (15,620,714) 29,919,204 32,128,019 34,596,141 Business-Type Activities:
Interest Income 1,320,576 166,835 617,958 606,799 1,167,858 Other Revenue 496,009 499,913 532,344 462,941 276,950
Gain From Sale of Capital Assets
Transfers, net 1,606,375 241,200
Total Business-Type Activities 1,816,585 666,748 1,150,302 2,676,115 1,686,008 Total Primary Government $119,356,558 ($14,953,966) $31,069,506 $34,804,134 $36,282,149 Change in Net Position:
Governmental Activities $91,290,865 ($35,153,742) $15,739,066 $16,219,634 $33,640,768 Business-Type Activities 5,514,887 3,175,693 6,032,207 9,506,723 5,587,753 Total Primary Government $96,805,752 ($31,978,049) $21,771,273 $25,726,357 $39,228,521 (1) The City implemented the provisions of GASB Statement 63 in fiscal year 2013, which replaced the term "net assets" with the term "net position". (2) The City implemented the provisions of GASB Statement 68 in fiscal year 2015. Amounts prior to 2015 have not been restated. (3) The City implemented the provisions of GASB Statement 75 in fiscal year 2018. Amounts prior to 2018 have not been restated. 140 ATTACHMENT 1
2017 2018(3) 2019 2020 2021
$3,483,457 $5,906,891 $6,053,229 $7,054,126 $9,079,274
6,196,786 9,669,910 7,701,286 8,242,158 10,364,833
22,357,675 34,883,973 36,204,202 42,395,447 40,640,436
124,185 120,222 134,006 145,310 87,185
5,274,495 7,091,236 8,645,927 7,137,403 9,367,355
9,295,263 10,651,329 10,125,867 11,710,512 9,047,085
9,817,010 8,850,328 11,513,804 10,268,116 11,463,230
89,384 84,784 80,021 129,403 163,409
56,638,255 77,258,673 80,458,342 87,082,475 90,212,807
16,753,545 17,520,196 17,818,593 18,967,868 26,674,047
22,082,085 16,478,268 17,479,631 18,596,722 19,697,865
12,126,537 11,491,357 12,622,724 12,752,503 12,884,734
1,347,568 1,121,928 1,284,914 1,327,641 1,643,383
52,309,735 46,611,749 49,205,862 51,644,734 60,900,029
$108,947,990 $123,870,422 $129,664,204 $138,727,209 $151,112,836 $5,136,836 $5,994,217 $6,266,735 $6,038,904 $6,172,866
4,624,314 7,306,692 7,640,377 6,545,381 7,062,924
1,542,872 1,874,561 3,232,381 1,580,738 2,969,457
273,903 288,452 398,437 239,053 1,056,285
3,458,096 3,337,139 4,247,649 4,173,698 3,846,159
2,925,863
6,698,385 8,695,800 9,575,549 9,952,561 9,597,652
33,113,697 33,768,730 26,345,923 38,154,802 50,590,297
54,848,103 61,265,591 60,632,914 66,685,137 81,295,640
15,396,799 17,841,323 16,620,397 17,576,060 21,103,821
22,953,356 26,572,846 26,305,512 22,510,081 24,757,696
10,483,066 12,593,379 13,429,983 13,875,762 14,624,464
908,639 1,193,170 1,112,976 1,044,323 1,689,785
23,126,463
6,660,347 4,487,162 3,577,598 10,233,700 4,401,716
56,402,207 62,687,880 61,046,466 65,239,926 89,703,945
$111,250,310 $123,953,471 $121,679,380 $131,925,063 $170,999,585 ($1,790,152) ($15,993,082) ($19,825,428) ($20,397,338) ($8,917,167) 4,092,472 16,076,131 11,840,604 13,595,192 28,803,916
$2,302,320 $83,049 ($7,984,824) ($6,802,146) $19,886,749 $14,476,480 $15,511,281 $17,158,387 $19,385,771 $21,126,114 17,550,799 18,971,755 20,298,214 22,292,924 23,509,852
3,012,505 3,325,769 3,761,139 3,434,933 4,144,750
850,024 1,175,293 5,026,389 4,501,680 1,012,967
1,327,689 1,867,047 848,738 215,694 598,244
326,216 209,612 350,696 1,144,141 1,268,286
1,675,000 457,360
(300,488) (468,073) (4,195,375) (581,885) 95,184
759,410
38,002,635 40,592,684 44,923,188 50,850,618 51,755,397
472,012 810,465 3,528,311 2,679,191 125,791
680,209 389,176 426,339 207,254 154,268
2,500
300,488 468,073 4,195,375 581,885 (95,184)
1,452,709 1,667,714 8,150,025 3,468,330 187,375
$39,455,344 $42,260,398 $53,073,213 $54,318,948 $51,942,772 $36,212,483 $24,599,602 $25,097,760 $30,453,280 $42,838,230 5,545,181 17,743,845 19,990,629 17,063,522 28,991,291
$41,757,664 $42,343,447 $45,088,389 $47,516,802 $71,829,521 141 ATTACHMENT 1
CITY OF MANTECA
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
June 30,
2012 2013 2014 2015 2016
General Fund:
Nonspendable $1,773,218 $1,914,952 $1,926,248 $227,542 $1,140,121 Restricted
Assigned 134,186 38,600 22,092 7,921,152 10,860,353
Unassigned 11,358,781 13,897,866 17,736,555 15,792,889 14,362,743 Total General Fund $13,266,185 $15,851,418 $19,684,895 $23,941,583 $26,363,217 All Other Governmental Funds:
Nonspendable $121,865 $60,930 $367,368
Restricted 112,765,524 63,581,446 $76,888,357 $80,121,549 109,084,616 Committed 267,919 347,995 443,166 542,435 566,659
Assigned 9,696,257 3,835,995 4,364,455 5,852,064 6,873,122 Unassigned (1,168)
Total All Other Governmental Funds $122,851,565 $67,825,198 $81,695,978 $86,516,048 $116,891,765 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Nonspendable Restricted Committed Assigned Unassigned
142 ATTACHMENT 1
2017 2018 2019 2020 2021
$1,236,685 $1,174,248 $1,167,635 $1,081,780 $1,081,780
496,896 493,423 497,968 468,942 463,902
12,167,528 12,242,789 22,234,205 22,845,194 22,693,202
15,313,223 17,864,670 5,365,691 9,498,731 12,784,135
$29,214,332 $31,775,130 $29,265,499 $33,894,647 $37,023,019 (a) $108,951,883 $121,695,103 $130,317,107 $114,589,894 $135,284,222 513,754 315,126 128,901 151,617
7,593,864 8,993,799 6,595,121 2,464,870 2,951,856
(217,246) (627,731)
$117,059,501 $131,004,028 $137,041,129 $116,989,135 $137,608,347 (a) 143 ATTACHMENT 1
CITY OF MANTECA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2012 2013 2014 2015 2016
Revenues
Taxes $32,190,532 $27,184,087 $28,753,641 $32,094,372 $32,947,680 Licenses and permits 2,970,397 2,934,737 3,731,526 4,662,438 5,500,733 Fines and forfeitures 322,653 296,262 337,288 283,690 251,348 Use of money and property 2,007,087 24,727 775,017 657,340 1,524,560 Revenue from other agencies 10,672,408 14,262,235 20,324,768 10,759,079 36,458,520 Charges for services 9,453,285 8,928,001 9,755,068 11,740,989 12,393,596 Other revenue 321,242 1,268,428 1,010,619 1,136,856 840,611 Total Revenues 57,937,604 54,898,477 64,687,927 61,334,764 89,917,048 Expenditures
Current:
General government 2,388,310 2,667,341 2,585,212 3,179,851 3,426,132 Community development 4,268,143 2,022,147 2,076,066 2,186,882 3,969,714 Public safety 21,935,765 22,237,001 22,661,015 24,376,036 26,515,201 Library 87,158 105,483 104,939 115,182 119,733
Public works 2,942,711 3,116,806 3,074,652 2,936,956 2,943,548 Parks and recreation 4,874,253 5,098,332 5,303,386 5,820,120 6,447,370 Streets and highways 1,995,725 2,486,394 1,903,753 1,944,873 3,657,370 Nondepartmental 2,276,198 2,323,236 2,602,469 2,745,157 2,620,108 Supplemental Educational Revenue
Augmentation Fund payment
Capital outlay 14,539,693 22,003,541 5,963,377 7,098,897 6,582,238 Debt service:
Principal repayment 3,000,250 2,181,486 450,222 310,581 277,308 Interest and fiscal charges 3,415,000 148,895 105,935 87,096 101,562 Total Expenditures 61,723,206 64,390,662 46,831,026 50,801,631 56,660,284 Excess (deficiency) of revenues over
(under) expenditures (3,785,602) (9,492,185) 17,856,901 10,533,133 33,256,764 Other Financing Sources (Uses)
Transfers in 1,603,423 5,271,444 2,015,513 431,526 4,773,733 Transfers (out) (1,624,923) (5,271,444) (2,180,663) (2,037,901) (5,814,933) Issuance of long-term debt 150,000 580,000
Proceeds from sale of property 500 721,883 12,506 1,787 Extraordinary item (29,778,417) (43,670,205)
Total other financing sources (uses) (29,799,417) (42,948,322) (152,644) (1,456,375) (459,413) Net Change in Fund Balances ($33,585,019) ($52,440,507) $17,704,257 $9,076,758 $32,797,351 Debt service as a percentage of
noncapital expenditures 13.5% 5.5% 1.4% 0.9% 0.7%
144 ATTACHMENT 1
2017 2018 2019 2020 2021
$35,923,482 $38,836,074 $41,952,454 $46,095,783 $49,951,360 $7,297,736 $9,361,925 7,741,377 8,434,426 11,329,285
242,370 274,079 495,618 592,613 478,460
887,642 1,178,617 4,702,952 4,322,549 906,839
8,181,175 9,979,594 10,055,955 9,472,396 16,804,068
16,563,471 24,833,693 25,269,605 25,323,831 35,093,633
1,310,923 978,783 792,282 547,619 589,850
70,406,799 85,442,765 91,010,243 94,789,217 115,153,495 4,213,380 3,908,666 4,489,437 5,257,415 6,546,850
3,427,208 6,062,166 4,642,422 5,057,407 5,547,248
28,149,443 29,913,998 32,607,974 36,853,715 38,759,432
124,621 116,993 128,069 130,899 75,421
3,437,585 4,235,394 4,805,032 5,093,797 7,738,420
6,811,941 7,619,147 8,074,112 8,142,074 6,351,451
3,911,368 2,406,785 6,976,028 4,553,139 4,278,286
2,853,407 3,087,315 2,996,435 2,624,979 3,828,297
13,440,297 11,593,401 19,115,918 41,854,768 17,306,911
129,708 134,307 139,070 144,002 115,961
89,384 84,784 80,021 129,403 163,409
66,588,342 69,162,956 84,054,518 109,841,598 90,711,686 3,818,457 16,279,809 6,955,725 (15,052,381) 24,441,809
346,972 753,989 217,000 540,000 496,000
(1,147,460) (1,117,564) (4,645,255) (1,451,875) (1,190,225) 882 589,091 1,000,000 541,410
(799,606) 225,516 (3,428,255) (370,465) (694,225)
$3,018,851 $16,505,325 $3,527,470 ($15,422,846) $23,747,584
0.4% 0.4% 0.3% 0.4% 0.4%
145 ATTACHMENT 1
Licenses Revenue Use of Charges Fines, Forfeits
Fiscal and From Other Money and for and Other
Year Taxes Permits Agencies Property Services Revenue Total 2012 $32,190,532 $2,970,397 $10,672,408 $2,007,087 $9,453,285 $643,895 $57,937,604 2013 27,184,087 2,934,737 14,262,235 24,727 8,928,001 1,564,690 54,898,477 2014 28,753,641 3,731,526 20,324,768 775,017 9,755,068 1,347,907 64,687,927 2015 32,094,372 4,662,438 10,759,079 657,340 11,740,989 1,420,546 61,334,764 2016 32,947,680 5,500,733 36,458,520 1,524,560 12,393,596 1,091,959 89,917,048 2017 35,923,482 7,297,736 8,181,175 887,642 16,563,471 1,553,293 70,406,799 2018 38,836,074 9,361,925 9,979,594 1,178,617 24,833,693 1,252,862 85,442,765 2019 41,952,454 7,741,377 10,055,955 4,702,952 25,269,605 1,287,900 91,010,243 2020 46,095,783 8,434,426 9,472,396 4,322,549 25,323,831 1,140,232 94,789,217 2021 49,951,360 11,329,285 16,804,068 906,839 35,093,633 1,068,310 115,153,495 Source: City Operating Budget and City Annual Financial Report
CITY OF MANTECA
GENERAL REVENUES BY SOURCE
ALL GOVERNMENTAL FUND TYPES
LAST TEN FISCAL YEARS
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Taxes Licenses and Permits
Revenue From Other Agencies Use of Money and Property
Charges for Services Fines, Forfeits and Other Revenue
146 ATTACHMENT 1
Fiscal General Public Public Parks and Capital Debt
Year Government (a) Safety Works Recreation Improvement (b) Service Total 2012 $9,019,809 $21,935,765 $2,942,711 $4,874,253 $16,535,418 $6,415,250 $61,723,206 2013 7,118,207 22,237,001 3,116,806 5,098,332 24,489,935 2,330,381 64,390,662 2014 7,368,686 22,661,015 3,074,652 5,303,386 7,867,130 556,157 46,831,026 2015 8,227,072 24,376,036 2,936,956 5,820,120 9,043,770 397,677 50,801,631 2016 10,135,687 26,515,201 2,943,548 6,447,370 10,239,608 378,870 56,660,284 2017 10,618,616 28,149,443 3,437,585 6,811,941 17,351,665 219,092 66,588,342 2018 13,175,140 29,913,998 4,235,394 7,619,147 14,000,186 219,091 69,162,956 2019 12,256,363 32,607,974 4,805,032 8,074,112 26,091,946 219,091 84,054,518 2020 13,070,700 36,853,715 5,093,797 8,142,074 46,407,907 273,405 109,841,598 2021 15,997,816 38,759,432 7,738,420 6,351,451 21,585,197 279,370 90,711,686 Source: City Operating Budget and City Annual Financial Report Notes: (a) Includes all General Government, Community Development, Library and Nondepartmental Expenditures (b) Includes Streets and Highways and Capital Outlay Expenditures
CITY OF MANTECA
GENERAL EXPENDITURES BY FUNCTION
ALL GOVERNMENTAL FUND TYPES
LAST TEN FISCAL YEARS
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
General Government (a) Public Safety Public Works
Parks and Recreation Capital Improvement (b) Debt Service 147 ATTACHMENT 1
CITY OF MANTECA
ASSESSED AND ESTIMATED
VALUE OF TAXABLE PROPERTY (in thousands)
LAST TEN FISCAL YEARS
Total Real Net Real Total
Fiscal Land Improvements Personal Secured (Less) Public Secured Unsecured Total Estimated Direct Year Property Property Property Property Exemption Utility Property Property Assessed (a) Full Market (a) Tax Rate (b) 2012 $1,298,422 $3,226,786 $41,833 $4,567,041 ($172,348) $1,536 $4,396,229 $169,664 $4,565,893 $4,565,893 1% 2013 1,303,784 3,227,682 41,881 4,573,347 (180,202) 1,536 4,394,681 171,505 4,566,186 4,566,186 1% 2014 1,557,732 3,408,740 56,548 5,023,020 (186,738) 1,346 4,837,628 164,543 5,002,171 5,002,171 1% 2015 1,780,920 3,851,282 56,842 5,689,044 (188,463) 1,346 5,501,927 172,348 5,674,275 5,674,275 1% 2016 1,936,284 4,145,924 56,729 6,138,937 (216,669) 1,346 5,923,614 181,734 6,105,348 6,105,348 1% 2017 2,098,268 4,433,045 56,943 6,588,256 (219,922) 1,282 6,369,616 182,277 6,551,893 6,551,893 1% 2018 2,300,404 4,760,891 48,467 7,109,762 (224,278) 1,282 6,886,766 201,060 7,087,826 7,087,826 1% 2019 2,412,089 5,220,890 48,882 7,681,861 (231,360) 1,282 7,451,783 182,024 7,633,807 7,633,807 1% 2020 2,595,124 5,785,690 53,707 8,434,521 (153,256) 1,282 8,282,547 175,612 8,458,159 8,458,159 1% 2021 2,775,610 6,430,002 73,481 9,279,093 (156,760) 1,190 9,123,523 171,834 9,295,357 9,295,357 1% Source: San Joaquin County Auditor Controller Office Certificate of Assessed Valuations (a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. (b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.
The City of Manteca encompasses more than 15 tax rate areas.
Real Property
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Thousands
Unsecured Property Secured Property
148 ATTACHMENT 1
CITY OF MANTECA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal Year
Redevelopment
Rate (4)
Total Direct
Rate (5)
2012 1.00000 0.03980 0.04940 0.02000 0.02470 1.13390 0.14496 1.00000 0.41350 2013 1.00000 0.04080 0.05020 0.02020 0.02880 1.14000 0.14488 0.40477 2014 1.00000 0.04020 0.04510 0.01940 0.02780 1.13250 0.14408 0.14363 2015 1.00000 0.03900 0.04680 0.02330 0.02180 1.13090 0.14408 0.14340 2016 1.00000 0.09510 0.05070 0.01980 0.02700 1.19260 0.14408 0.14254 2017 1.00000 0.08660 0.05200 0.01800 0.02310 1.17970 0.14408 0.14186 2018 1.00000 0.09160 0.04810 0.01800 0.02420 1.18190 0.14408 0.14127 2019 1.00000 0.08140 0.04680 0.02250 0.02600 1.17670 0.14408 0.14295 2020 1.00000 0.07690 0.04480 0.01990 0.02400 1.16560 0.14408 0.14259 2021 1.00000 0.07120 0.04370 0.01830 0.02300 1.15620 0.14408 0.14100 Notes:
Data Source:
San Joaquin
Delta College
District
Yosemite
College
Total Direct
and Overlapping
Tax Rates (2)
San Joaquin County Assessor 2011/12-2020/21 Tax Rate Table City's Share
of
1.% Levy
Per Prop 13 (3)
(1)In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. (3) City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where know.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and the years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft.
Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
The ratios are expressed as dollars assessed per $100 of assessed valuation Basic Levy
(1) Manteca USD
Ripon Unified
District
0.0000
0.2000
0.4000
0.6000
0.8000
1.0000
1.2000
1.4000
1.6000
2012
2013
2014
2015
2016
Per Hundred $
0 0.2
0.4 0.6
0.8 1
1.2 1.4
1.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Rate
Per $100 of Taxable Value
Basic Levy Manteca USD Rippon Unified District
San Joaquin Delta College District Yosemite College Total Direct and Overlapping Tax Rates City's Share of 1% Levy Per Prop 13 Redevelopment Rate Total Direct Rate 149 ATTACHMENT 1
CITY OF MANTECA
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable
Type of Assessed Type of Assessed
Taxpayer Business Value Business Value
GWR Manteca LLC Water Park/Resort 1.38%
Centerpoint Properties Trust Industrial 1.32%
Anson Logistics Assets LLC Warehouse 0.64%
Manteca Lifestyle Center LLC Shopping Center 0.57% Shopping Center 1.88% DP & DK Investment Inc. Shopping Center 0.55%
LLH MRS Master RE LLC Cold Storage 0.51%
Tesoro Apartments LLC Apartments 0.51%
Paseo Apartments LLC Apartments 0.49% Apartments 0.66%
Tilden-Laurel Glen LLC Apartments 0.39%
Stonegate Apartments LLC Apartments 0.35% Apartments 0.28% Colfin 2019 2E Industrial Owner Warehouse 0.35%
Prologis Warehouse 0.33% Warehouse 0.48%
Edward J & Dolores M Cardoza Shopping Center 0.30% Shopping Center 0.53% Duke Realty LP Warehouse 0.30%
Costco Wholesale Corporation Commercial Store 0.29% Commercial Store 0.52% Doctors Hospital of Manteca Inc. Hospital 0.24% Hospital 0.47% MP Core Fairway LLC Apartments 0.24%
Ryba Real Estate Inc. Shopping Center 0.20%
KB HOME Sacto Inc. Residential Development 0.20%
Herzog Real Estate Development Services Apartments 0.19% Pivotal 650 California St LLC Shopping Center 0.92%
Millard Refrigerated Services Inc. Cold Storage 0.75%
Pulte Home Corp Residential Development 0.66%
Metropolitan Life Insurance Co. Warehouse 0.51%
Veera Properties LLC Shopping Center 0.42%
Mission Ridge Plaza LP Shopping Center 0.37%
J.C.Penney Properties Inc. Shopping Center 0.35%
Commons at Woodbridge LLC Office Building 0.32%
Jackson Retail Venture LLC Office Building 0.31%
John J & Eleanor L Vierra Residential Properties 0.29%
Wal Mart Realty Company Commercial Store 0.29%
430 North Union Road LLC Office Building 0.28%
Kohl's Department Stores, Inc. Shopping Center 0.26%
Total 9.35% 10.55%
Source: California Municipal Statistics
2020-2021 2011-2012
150 ATTACHMENT 1
CITY OF MANTECA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
#
#
#
Percent
of Total
Current Percent Delinquent Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) (b) Collections Collected Collections Collections to Tax Levy 2012 $8,901,066 $8,901,066 100.00% $0 $8,901,066 100.00% 2013 10,674,783 10,674,783 100.00% 0 10,674,783 100.00% 2014 11,051,871 11,051,871 100.00% 0 11,051,871 100.00% 2015 13,054,963 13,054,963 100.00% 0 13,054,963 100.00% 2016 12,633,502 12,633,502 100.00% 0 12,633,502 100.00% 2017 14,476,479 14,476,479 100.00% 0 14,476,479 100.00% 2018 15,511,281 15,511,281 100.00% 0 15,511,281 100.00% 2019 17,158,387 17,158,387 100.00% 0 17,158,387 100.00% 2020 19,385,771 19,385,771 100.00% 0 19,385,771 100.00% 2021 21,126,114 21,126,114 100.00% 0 21,126,114 100.00% Source: City of Manteca Records
NOTE: Current tax collections beginning in 1993 have been reduced by a mandatory tax reallocation imposed by the State of California
(a) During fiscal year 1995, the County began providing the City 100% of its tax levy under an agreement which allows the County to keep all interest and delinquency charges collected.
(b) Includes State Mandated Vehicle License Fee in lieu of property taxes $0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Total Tax Levy (a) (b) Tax Collections
151 ATTACHMENT 1
2020-21 Total Local Secured
Assessed Valuation $857,100,984
Project Area No. 1
Property Owner Primary Land Use
2020-21 Assessed
Valuation
% Total of
Assessed
Valuation
1 Tilden-Laurel Glen LLC Apartments $35,506,920 4.14%
2 Stonegate Apartments LLC Apartments 24,070,854 2.81%
3 Doctors Hospital of Manteca Inc. Hospital 22,308,191 2.60% 4 Edward J. and Dolores M. Cardoza Trust Shopping Center 17,105,127 2.00% 5 Wal Mart Realty Company Commercial Stores 14,100,807 1.65% 6 B.R. Funsten & Co. Corp. Warehouse 13,547,767 1.58%
7 VFT Properties LLC Apartments 12,899,766 1.51%
8 MP Core Sienna Place LLC Apartments 11,154,115 1.30%
9 Khatri Brothers Ptp. Hotel/Motel 9,719,339 1.13%
10 North Main Storage LLC Public Storage 6,738,913 0.79% 11 Brocchini Family Partnership Commercial 6,130,251 0.72% 12 KDDC Properties LLC Commercial 5,972,748 0.70%
13 Eckert Engineering Corp. Warehouse 5,679,579 0.66%
14 Store Master Funding XVI Bowling Alley & Sports Bar 5,508,000 0.64% 15 MN Gianni LLC Commercial 5,287,431 0.62%
16 Hensley Investment Company Office Building 5,000,000 0.58% 17 SFP B Partnership Commercial 4,624,196 0.54%
18 A.E. Kline, Trust Office Building 4,560,540 0.53%
19 Professional Maint. Co. Inc. Shopping Center 4,500,000 0.53% 20 Storage Solutions Manteca LLC Public Storage 4,416,745 0.52% $218,831,289 25.55%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 1
TOP TWENTY ASSESSED VALUES
June 30, 2021
152 ATTACHMENT 1
2020-21 Total Local Secured
Assessed Valuation $1,590,275,801
Project Area No. 2
Property Owner Primary Land Use
2020-21 Assessed
Valuation
% of Total
Assessed
Valuation
1 DP & DK Investments Inc. Shopping Center $49,980,000 3.14% 2 LLH MRS Master RE LLC Cold Storage 46,645,148 2.93%
3 Colfin 2019 2E Industrial Owner Warehouse 31,620,000 1.99% 4 Prologis Warehouse 30,457,878 1.92%
5 Duke Realty LP Warehouse 27,023,362 1.70%
6 Costco Wholesale Corporation Commercial Store 26,312,096 1.65% 7 Yip Holdings Five LLC Shopping Center 14,480,014 0.91% 8 Argo Manteca LLC Shopping Center 14,186,264 0.89%
9 Manteca Associates LP Light Industrial 13,507,345 0.85% 10 Target Corp. Shopping Center 12,166,099 0.77%
11 Manteca Corners LLC Shopping Center 11,526,000 0.72% 12 Kohl's Department Stores Inc. Shopping Center 11,500,000 0.72% 13 HD Development of Maryland Inc. Commercial Store 10,874,154 0.68% 14 Cranbrook Realty Invest Fund LP Warehouse 10,835,539 0.68% 15 Brocchini Family Partnership LP Office Building 9,740,174 0.61% 16 Daniel M. & Belinda A. Sarich, Trust Light Industrial 9,714,899 0.61% 17 277 Commerce Ave. LLC Shopping Center 8,750,000 0.55% 18 Nestle Dreyers Ice Cream Co. Cold Storage 8,500,000 0.53% 19 Realty Income Properties 23 Commercial Store 8,134,031 0.51% 20 VFT Family Partnership LP Apartments 8,041,859 0.51% $363,994,862 22.87%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 2
TOP TWENTY ASSESSED VALUES
June 30, 2021
153 ATTACHMENT 1
2020-21 Total Local Secured
Assessed Valuation $21,901,390
2005 Merged Project Amended Area
Property Owner Primary Land Use
2020-21 Assessed
Valuation
% of Total
Assessed
Valuation
1 AGS Gasoline LLC Service Station $3,072,494 14.03%
2 Jaswant S. Pannu Commercial Land 988,380 4.51%
3 National San Joaquin LLC Assisted Living 950,000 4.34% 4 Major Singh Brar Commercial Land 940,000 4.29%
5 Andrew & Ashley Candelario Residential 760,000 3.47%
6 Chattarpal S. Pabla Multi-Family Residential 700,000 3.20% 7 David L. Peters Truck Terminal 686,006 3.13%
8 Gian S and Ghangu Sandeep Bhangu Residential 633,726 2.89% 9 Jasvir and Sarbjit K. Singh Trust Light Industrial 613,292 2.80% 10 Robert L. and Dorthy F. Mack Residential 561,187 2.56% 11 Natalyn J. and Thomas E. Bergman, Jr. Residential 431,000 1.97% 12 Hiway Farm LLC Commercial Land 394,089 1.80%
13 Kyung Han and Mi Jwa Yoon Residential 383,102 1.75%
14 James H. Zimmerman Residential 383,000 1.75%
15 Nicolas and Heather D. Hernandez Residential 372,197 1.70% 16 Taurino Sanchez Chavez Residential 349,623 1.60%
17 Bachan Singh Residential 338,803 1.55%
18 Benny Singh Dhanda Residential 332,928 1.52%
19 Ranjit and Jaswinder Khangura Residential 320,000 1.46% 20 Roger O. Beugre Residential 318,689 1.46%
$13,528,516 61.78%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT MERGED PROJECT AREA
TOP TWENTY ASSESSED VALUES
June 30, 2021
154 ATTACHMENT 1
2020-21 Total Local Secured
Assessed Valuation $318,358,650
2004 Amended Area
Property Owner Primary Land Use
2020-21 Assessed
Valuation
% of Total
Assessed
Valuation
1 GWR Manteca LLC Water Park/Resort $125,566,330 39.44% 2 Anson Logistics Assets LLC Warehouse $58,140,000 18.26% 3 Manteca Lifestyle Center LLC Shopping Center 51,877,157 16.30% 4 Big Box Property Owner A LLC Light Industrial 11,960,871 3.76% 5 DTST2 Holdings LLC RV Sales 11,640,136 3.66%
6 Manteca Lodging LLC Shopping Center 9,619,731 3.02%
7 JC Penney Properties Inc. Shopping Center 7,889,670 2.48% 8 Lanting Family LLC Truck Terminal 7,150,946 2.25%
9 Andreetta Properties LP Food Processing 7,084,646 2.23% 10 Atherton Woodward Partners LLC Commercial Land 2,483,661 0.78% 11 Manteca Turlock Terminal LLC Industrial Land 2,264,400 0.71% 12 Ergonis Land Co. LP Light Industrial 2,251,060 0.71% 13 Tesoro Commons LLC Residential Properties 2,200,000 0.69% 14 Rajinder Aulakh Commercial Land 1,456,232 0.46%
15 Johnny R. Gibson Light Industrial 1,300,000 0.41%
16 RLD Partners Vacant 1,165,000 0.37%
17 John N. and Galatia Aretakis Trust Residential 990,678 0.31% 18 West Yosemite Properties LLC Light Industrial 861,362 0.27% 19 Gateway Solar RV & Boat Storage LLC Industrial Land 769,252 0.24% 20 Rajwinder Singh Bahia Commercial Land 735,907 0.23%
$307,407,039 96.58%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT AMENDED MERGED PROJECT AREA
TOP TWENTY ASSESSED VALUES
June 30, 2021
155 ATTACHMENT 1
CITY OF MANTECA
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(in thousands of dollars)
2011 2012 2013 2014 2015
Apparel Stores $29,987 $34,079 $38,644 $39,906 $42,537
General Merchandise 174,048 184,040 187,691 191,787 198,554 Food Stores 26,264 26,844 26,425 27,533 28,535
Eating and Drinking Places 78,211 85,342 91,574 98,018 107,809 Building Materials 93,770 98,439 107,576 109,006 113,578 Auto Dealers and Supplies 90,055 100,576 119,884 125,807 151,717 Service Stations 96,107 104,083 103,613 106,855 90,313
Other Retail Stores 117,588 114,149 124,666 125,611 128,152 All Other Outlets 155,628 173,673 181,589 213,270 226,773 Total $861,658 $921,225 $981,662 $1,037,793 $1,087,968
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 156 ATTACHMENT 1
2016 2017 2018 2019 2020
$44,158 $46,781 $50,143 $51,211 $38,668
203,016 212,248 214,730 220,108 213,182
30,245 30,401 31,540 32,195 38,458
116,177 125,661 130,613 140,213 131,768
121,128 128,925 129,723 135,369 138,684
163,496 168,973 179,318 179,014 188,657
89,246 102,907 122,935 130,431 111,817
130,676 126,974 126,018 126,131 134,618
245,295 263,859 294,936 322,087 333,889
$1,143,437 $1,206,729 $1,279,956 $1,336,759 $1,329,741
157 ATTACHMENT 1
CITY OF MANTECA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
Fiscal City Direct State of
Year Rate Measure M Measure K California
2011-12 1.00 0.50 0.50 6.25 (a)
2012-13 1.00 0.50 0.50 6.50 (b)
2013-14 1.00 0.50 0.50 6.50
2014-15 1.00 0.50 0.50 6.50
2015-16 1.00 0.50 0.50 6.50
2016-17 1.00 0.50 0.50 6.25 (c)
2017-18 1.00 0.50 0.50 6.25
2018-19 1.00 0.50 0.50 6.25
2019-20 1.00 0.50 0.50 6.25
2020-21 1.00 0.50 0.50 6.25
Source: California State Board of Equalization
(a) July 1, 2011 the State decreased the State Rate 1%
(b) On both July 1, 2012 and April 1, 2013 the State
increased the State Rate 0.125%
(c) On January 1, 2017, the State decreased the
the State Rate 0.25%
158 ATTACHMENT 1
CITY OF MANTECA
PRINCIPAL SALES TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
IN ALPHABETICAL ORDER
2020-2021 2011-2012
Ahmeds Chevron 5.11 Tactical Series
American Modular Systems A&A Gas & Food Mart
Arco Amazon Com Series
B. R. Funsten & Company American Modular Systems
Bass Pro Shops Outdoor World Arco
Best Buy Arco Am Pm
Cabral Chrysler Jeep Dodge Ram Fiat Arco Am Pm
Chevron B R Funsten & Company
Costco Wholesale Bass Pro Shops Outdoor World
Country Kia Burlington
Cruisers Manteca Cabral Chrysler Jeep Dodge Ram Fiat
Global HVAC Distributions Inc. Calstate Supply
Home Depot Chick Fil A
J. M. Equipment Company Core & Main LP
J C Penney Company Costco Wholesale
K-Mart County Kia
Kohl's Department Stores Home Depot
Manteca Arco J. M. Equipment Company
Manteca Ford Manteca Ford
Manteca Trailer & Motorhome Manteca Trailer & Camper
Quik Stop Ross Stores
Ross Stores Target Stores
Save Mart Supermarkets TJ Maxx
Target Stores Tracker Boat Center
Walmart Supercenter Walmart Supercenter
Percent of fiscal year total paid by top 25 accounts:
56.64% 54.68%
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, TheHdL Companies 159 ATTACHMENT 1
CITY OF MANTECA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Capital Loan
Year Leases Payable Total
2012 $1,632,972 $1,700,000 (b) $3,332,972
2013 1,054,948 1,054,948
2014 520,937 520,937
2015 960,356 960,356
2016 1,150,979 1,150,979
2017 905,370 905,370
2018 651,199 651,199
2019 388,165 388,165
2020 115,961 115,961
2021 00
Business-Type Activities
Water Sewer Total Percentage
Fiscal Revenue Revenue Capital Primary of Personal Per
Year Bonds Bonds Leases Total Government Income (a) Capita (a) 2012 $41,625,000 $45,855,000 $101,650 $87,581,650 $90,914,622 5.73% $1,302 2013 41,542,809 44,170,769 34,773 85,748,351 86,803,299 5.51% 1,220 2014 40,444,293 43,056,675 83,500,968 84,021,905 5.23% 1,153 2015 39,125,778 41,937,581 81,063,359 82,023,715 5.04% 1,128 2016 37,787,462 40,748,487 78,535,949 79,686,928 4.74% 1,079 2017 36,404,147 39,484,393 75,888,540 76,793,910 4.47% 1,007 2018 34,970,831 38,135,300 73,106,131 73,757,330 4.09% 907 2019 33,487,516 36,831,206 70,318,722 70,706,887 3.68% 844 2020 31,954,201 35,337,112 67,291,313 67,407,274 3.22% 795 2021 30,350,886 33,728,018 64,078,904 64,078,904 2.80% 734 Sources: City of Manteca
State of California, Department of Finance (population) Bureau of Economic Analysis
Note: Debt amounts exclude any premiums, discounts, or other amortization amounts. (a) See Demographic Statistics for personal income and population data. (b) Due to the dissolution of the Redevelopment Agency the City's previous advance with the Agency became a loan payable to the Successor Agency. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Total Governmental Activities
160 ATTACHMENT 1
CITY OF MANTECA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2021
2020-21 Assessed Valuation: $9,295,356,393
Total Debt City's Share of
JURISDICTION 6/30/2021 % Applicable (1) Debt 6/30/21
OVERLAPPING TAX AND ASSESSMENT DEBT
San Joaquin Delta Community College District $200,505,000 9.781% $19,611,394 Yosemite Community College District 258,715,060 0.330% 853,760 Manteca Unified School District 167,369,885 52.716% 88,230,709 Ripon Unified School District 29,214,822 7.457% 2,178,549 Manteca Unified School District Community Facilities District No. 1989-2 21,305,000 79.150% 16,862,908 Manteca Unified School District Community Facilities District No. 2000-3 20,905,000 100.000% 20,905,000 California Statewide Communities Development Authority CFD No. 2012-2 5,980,000 100.000% 5,980,000 California Statewide Communities Development Authority 1915 Act Bonds 41,864,589 100.000% 41,864,589 Reclamation District No 17 Assessment District 21,637,111 6.969% 1,507,890 TOTAL OVERLAPPING DEBT $767,496,467 $197,994,799
DIRECT AND OVERLAPPING GENERAL FUND DEBT
San Joaquin County Certificates of Participation $65,595,000 10.917% $7,161,006 Manteca Unified School District Certificates of Participation 17,973,000 52.716% 9,474,647 CITY OF MANTECA GENERAL FUND OBLIGATIONS 0 100.000% 0
Total Gross Direct and Overlapping General Fund Debt $83,568,000 16,635,653 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $16,635,653 (2) OVERLAPPING TAX INCREMENT DEBT: $95,945,000 100.000% $95,945,000 TOTAL DIRECT DEBT $0 (2)
TOTAL OVERLAPPING DEBT $310,575,452 (2)
COMBINED TOTAL DEBT $310,575,452 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the city's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2020-21 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 3.34%
Total Direct Debt 0.00%
Combined Total Debt 3.34%
Ratios to Redevelopment Incremental Valuation ($2,479,044,201) Total Overlapping Tax Increment Debt
Source: California Municipal Statistics, Inc.
161 ATTACHMENT 1
CITY OF MANTECA
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2021
ASSESSED VALUATION:
Assessed Value $9,295,357,000
Add back: Exempt real property 0
Total Assessed Valuation $9,295,357,000
BONDED DEBT LIMIT (15.0% OF ASSESSED VALUE) (a) $1,394,303,550 AMOUNT OF DEBT SUBJECT TO LIMIT: 0
LEGAL BONDED DEBT MARGIN $1,394,303,550
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2012 $706,125,659 $0 $706,125,659 0.00%
2013 711,958,278 0 711,958,278 0.00%
2014 780,712,116 0 780,712,116 0.00%
2015 881,503,451 0 881,503,451 0.00%
2016 926,579,505 0 926,579,505 0.00%
2017 993,777,916 0 993,777,916 0.00%
2018 1,074,262,278 0 1,074,262,278 0.00%
2019 1,156,369,671 0 1,156,369,671 0.00%
2020 1,268,723,873 0 1,268,723,873 0.00%
2021 1,394,303,550 0 1,394,303,550 0.00%
NOTE:
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
162 ATTACHMENT 1
CITY OF MANTECA
REVENUE BOND COVERAGE
WATER REVENUE BONDS
LAST TEN FISCAL YEARS
Depreciation Net Revenue
Fiscal Gross Operating Non-Operating Available for Debt Service Requirements Year Revenue Expenses Revenues (b) Debt Service Principal Interest Total Coverage 2012 $13,285,244 ($11,395,400) $4,029,951 $5,919,795 $610,000 $1,920,336 $2,530,336 2.34 2013 13,534,427 (11,824,834) 3,293,169 5,002,762 750,000 (a) 955,974 1,705,974 2.93 2014 14,386,302 (12,424,475) 3,713,168 5,674,995 905,000 1,724,808 2,629,808 2.16 2015 14,253,339 (12,560,076) 3,394,634 5,087,897 1,125,000 1,653,100 2,778,100 1.83 2016 13,911,824 (13,569,363) 4,219,136 4,561,597 1,145,000 1,618,950 2,763,950 1.65 2017 15,475,870 (15,374,241) 3,955,645 4,057,274 1,190,000 1,572,250 2,762,250 1.47 2018 17,874,779 (16,190,492) 4,115,119 5,799,406 1,240,000 1,523,650 2,763,650 2.10 2019 16,630,981 (16,540,348) 5,353,867 5,444,500 1,290,000 1,473,050 2,763,050 1.97 2020 17,460,808 (17,781,017) 4,918,205 4,597,996 1,340,000 1,413,750 2,753,750 1.67 2021 21,103,961 (17,381,197) 3,838,008 7,560,772 1,410,000 1,345,000 2,755,000 2.74 Source: City of Manteca Annual Financial Statements
Note: (a) The 2003A Water Revenue Bonds were refunded and defeased by the 2012 Water Revenue Refunding Bonds during the fiscal year. Retirements exclude the refunded bond principal of $40,875,000. (b) Depreciation expense is added back to exclude it from net revenues. Interest income is included the calculation of net revenues.
Source: City of Manteca Annual Financial Statements
0.00 1.00
2.00 3.00
4.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coverage
163 ATTACHMENT 1
CITY OF MANTECA
REVENUE BOND COVERAGE
SEWER REVENUE BONDS
LAST TEN FISCAL YEARS
Depreciation Net Revenue
Fiscal Operating Operating Non-Operating Available for Debt Service Requirements Year Revenue Expenses Revenues (c) Debt Service Principal Interest Total Coverage 2012 $17,506,803 ($10,638,966) $3,253,372 $10,121,209 $755,000 $2,331,779 $3,086,779 3.28 2013 17,506,393 (11,104,886) 3,108,517 9,510,024 3,020,000 (a)(b) 2,066,197 5,086,197 1.87 2014 18,178,282 (11,834,974) 3,207,615 9,550,923 1,030,000 1,891,791 2,921,791 3.27 2015 19,358,013 (11,980,756) 3,151,337 10,528,594 1,035,000 1,871,141 2,906,141 3.62 2016 20,088,298 (12,427,362) 3,823,516 11,484,452 1,105,000 1,844,216 2,949,216 3.89 2017 23,353,626 (20,270,910) 3,693,782 6,776,498 1,180,000 1,809,941 2,989,941 2.27 2018 26,752,536 (14,696,631) 3,953,777 16,009,682 1,265,000 1,779,591 3,044,591 5.26 2019 26,407,556 (15,734,144) 5,554,762 16,228,174 1,220,000 1,744,741 2,964,741 5.47 2020 22,632,685 (16,910,860) 5,314,430 11,036,255 1,410,000 1,687,291 3,097,291 3.56 2021 24,878,743 (17,983,713) 4,527,785 11,422,815 1,525,000 1,613,916 3,138,916 3.64 Note (a) Principal includes early redemption payment for bonds called during the fiscal year. (b) The 2003 A&B Sewer Revenue Bonds were refunded and defeased by the 2012 Sewer Revenue Refunding Bonds during the fiscal year. Retirements exclude the refunded bond principal of $23,835,000. (c) Depreciation expense is added back to exclude it from net revenues. Interest income is included the calculation of net revenues.
Source: City of Manteca Annual Financial Statements
0.00 1.00
2.00 3.00
4.00 5.00
6.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coverage
164 ATTACHMENT 1
CITY OF MANTECA
BONDED DEBT PLEDGED-REVENUE COVERAGE
REDEVELOPMENT AGENCY TAX ALLOCATION BONDS
LAST TEN FISCAL YEARS
Tax Debt Service Requirements
Fiscal Increment
Year Revenue Principal Interest (c) Total Coverage
2012 $11,953,924 (a) (b) $2,540,000 (a) $5,265,299 (a) $7,805,299 1.53 2013 11,125,234 (a) (b) 2,640,000 (a) 5,181,408 (a) 7,821,408 1.42 2014 6,666,009 (a) (b) 2,750,000 (a) 5,037,006 (a) 7,787,006 0.86 2015 4,975,892 (a) (b) 2,875,000 (a) 4,923,045 (a) 7,798,045 0.64 2016 9,143,768 (a) (b) 3,000,000 (a) 5,003,356 (a) 8,003,356 1.14 2017 8,860,814 (a) (b) 3,135,000 (a) 5,765,392 (a) 8,900,392 1.00 2018 8,970,904 (a) (b) 3,275,000 (a) 5,599,995 (a) 8,874,995 1.01 2019 8,638,662 (a) (b) 3,420,000 (a) 5,155,090 (a) 8,575,090 1.01 2020 8,463,615 (a) (b) 3,570,000 (a) (d) 3,815,396 (a) (d) 7,385,396 1.15 2021 4,982,819 (a) (b) 1,985,000 (a) 1,657,216 (a) 3,642,216 1.37 Note: (a) The Redevelopment Agency was dissolved effective January 31, 2012, and its liabilities were assumed by a Successor Agency. Amounts reported here include tax revenue and debt service of both the former Redevelopment Agency and the Successor Agency. (b) Beginning in fiscal year 2012, tax increment reported in this table is the amount calculated by the County Auditor-Controller. Under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. (c) Excludes the letter of credit and remarketing fees on the 2005 Tax Allocation Bonds. (d) Excludes principal retirements related to the issuance of the Series 2020A and 2020B Refunding Bonds.
Source: City of Manteca Annual Financial Statements
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Incremental Revenue Debt Service Payment
165 ATTACHMENT 1
CITY OF MANTECA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Total
Personal Per Capita San Joaquin City
Calendar City Income Personal Unemployment County Population Year Population (in thousands) Income (a) Rate (%) Population % of County 2011 69,815 $1,587,174 $22,734 14.7% 695,750 10.03%
2012 71,164 1,574,219 22,121 11.2% 698,414 10.19%
2013 72,880 1,606,348 22,041 10.1% 710,731 10.25%
2014 72,701 1,626,176 22,368 10.7% 719,511 10.10%
2015 73,841 1,682,925 22,791 8.9% 735,677 10.04%
2016 76,247 1,717,719 22,528 8.1% 747,263 10.20%
2017 81,345 1,804,801 22,187 6.9% 758,744 10.72%
2018 83,781 1,923,643 22,960 4.5% 770,385 10.88%
2019 84,800 2,091,006 24,658 4.4% 773,505 10.96%
2020 87,319 2,286,735 26,188 9.9% 783,534 11.14%
Source: California State Department of Finance - City Population (1/1/20) Bureau of Labor Statistics - Unemployment Rate (Not Seasonally Adjusted) Bureau of Economic Analysis - Per Capita (San Joaquin County) Note: Data for Per Capita 2016 and 2017 was not available. Numbers are projections. (a) Personal income is a product of the countywide per capita amount and the City's population
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Unemployment Rate
8.00%
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
11.50%
12.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
City Population as a % of County Population
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Millions
Personal Income (in thousands)
$20
$22
$24
$26
$28
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Thousands
Per Capita Personal Income
166 ATTACHMENT 1
CITY OF MANTECA
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Amazon.com Services, LLC 1,139 1 1.3%
Tennant Sales and Service Co. 800 2 0.9%
Manteca Unified School District 707 3 0.8% 2,146 1 3.1% Doctors Hospital of Manteca 401 4 0.5% 370 3 0.5%
City of Manteca 360 5 0.4% 342 4 0.5%
Kaiser Permanente Medical Offices & Hospital 351 6 0.4% 527 2 0.8% Wal-Mart 316 7 0.4% 304 5 0.4%
COSTCO Wholesale #1031 312 8 0.4% 175 8 0.3%
BASS Pro Outdoor World 301 9 150 10 0.2%
Eckert Cold Storage 250 10 0.3% 300 7 0.4%
A.M. Stephens Construction Co., Inc. 250 10 0.3%
C. Overaa & Co. 250 10 0.3%
Gardner Trucking Inc. 300 6 0.4%
Target Stores 151 9 0.2%
The Home Depot Inc. 143 11 0.2%
Total Employees - Principal Employers 5,437 6.4% 4,908 7.0% Total City Population 84,842 69,815
Source: City of Manteca Community Development Department (Business License) 2020-21 2011-12
167 ATTACHMENT 1
CITY OF MANTECA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General government 36.00 36.00 38.00 41.00 38.00 39.00 40.00 39.00 39.00 65.00 Public safety 132.00 129.00 130.00 132.00 147.00 152.00 151.00 159.00 159.00 162.00 Public works 37.00 34.00 34.00 37.00 35.00 36.00 41.00 44.00 44.00 30.00 Community development 15.00 12.00 12.00 16.00 16.00 21.00 24.00 25.00 25.00 19.00 Parks & recreation 32.00 30.00 31.00 32.00 34.00 36.00 37.00 38.00 38.00 36.00 Water 20.00 21.00 19.00 23.00 25.00 29.00 27.00 27.00 27.00 24.00 Wastewater 32.00 32.00 32.00 33.00 35.00 38.00 38.00 38.00 38.00 34.00 Solid Waste 38.00 36.00 36.00 37.00 37.00 36.00 37.00 37.00 37.00 36.00 Total 342.00 330.00 332.00 351.00 367.00 387.00 395.00 407.00 407.00 406.00 Source: City of Manteca Budget Document
0.00 50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
FTE's
General government Public safety Public works
Community development Parks & recreation Water
Wastewater Solid Waste
168 ATTACHMENT 1
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ATTACHMENT 1
CITY OF MANTECA
OPERATING INDICATORS AND CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2012 2013 2014** 2015** 2016
Citizens 69,815 71,164 72,880 73,787 73,841
Date of Incorporation May 28,1918 May 28,1918 May 28,1918 May 28,1918 May 28,1918 Form of Government Council/Manager Council/Manager Council/Manager Council/Manager Council/Manager Area 20.61 Sq Miles 20.61 Sq Miles 20.61 Sq Miles 20.92 Sq Miles 20.92 Sq Miles Registered Voters 27,999 30,731 30,930 30,975 33,105
Building Permits Issued 1,783 1,891 2,134 3,027 3,418
Employees from Budget Document 342 330 332 351 367
Number of Stations 33444
Number of Reserve Personnel 12 13 25 25 22
Number of Sworn Fire Personnel * 39 39 40 41 49
Number of Calls Answered 5,448 5,937 5,854 6,252 6,682
Number of Stations 11111
Number of Police Officers 63 63 63 64 65
Number of Volunteers 102 124 115 94 87
Number of Support Personnel 21 23 23 24 29
Number of Calls Answered 32,964 37,161 33,885 35,036 42,717 Park Sites 5355565865
Acres of Parks 329 357 362 367 382
Senior Centers 11111
Swimming Pools 22222
Tennis Courts 88888
Pickle Ball Court
Number of Park/Golf Trees 7,320 7,520 7,600 7,600 7,600 Number of Street Trees 10,680 10,980 17,000 18,000 18,500 Acres of Golf Course 111 111 111 111 111
Public Libraries 11111
Landscape Maintenance Districts 2427292929
Benefit Area District 44444
Community Facility Districts 1169
Miles of Streets 222 238 241 250 250
Number of Street Lights 4,681 4,822 4,856 5,143 5,405
Number of Meters 20,338 20,675 20,876 21,161 21,696
Miles of Water Mains 258 258 259 266 280
Average Daily Consumptions (Gal) 11.83 MGD 13.25 MGD 14.06 MGD 11.11 MGD 9.89 MGD Number of Connections 23,738 24,178 24,940 20,791 21,325 Miles of Sewer Lines 223 226 227 243 250
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 5.98 MGD 6.25 MGD 6.29 MGD 6 MGD 6.25 MGD Treatment Capacity 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD Number of Accounts 23,397 20,066 20,399 20,879 21,411
Elementary Schools 20 20 20 23 23
High Schools 55555
Alternative Schools 3333
Adult Education 1 2 2 1 1
Charter School 11
Teachers 934 978 1,094 1,019 1,041
Elementary Classrooms 903 903 897 895 895
High School Classrooms 464 438 451 461 457
Adult Education Classrooms 10 27 10 42 3
Current Enrollment 23,325 22,061 23,145 22,909 23,981
Source: City of Manteca Budget Document
Manteca Fire Department Annual Report
Various Manteca Unified School District Records
City of Manteca
Note: n/a denotes information not available.
* Includes the Fire Department's Chief Officers
** Updated numbers from Muni Service Sales Tax Analysis *** New State Mandates require reserves to be as fully trained as a full-time Firefighter, making it difficult to retain individuals as reserves when they can move on to full-time firefigher employment.
Police Protection
Education
Public Works
Water Utility
Wastewater
Solid Waste
Population
Fire Protection
Parks & Recreation
170 ATTACHMENT 1
Fiscal Year
2017 2018 2019 2020 2021
Citizens 76,247 81,345 83,781 84,842 87,319
Date of Incorporation May 28,1918 May 28,1918 May 28,1918 May 28,1918 May 28,1918 Form of Government Council/Manager Council/Manager Council/Manager Council/Manager Council/Manager Area 20.92 Sq Miles 21.45 21.45 21.45 21.48
Registered Voters 36,327 37,775 38,575 43,642 44,829
Building Permits Issued 3,565 4,312 3,653 3,740 4,679
Employees from Budget Document 387 395 407 407 406
Number of Stations 4 4 4 5 5
Number of Reserve Personnel 20 24 23 15 5***
Number of Sworn Fire Personnel 60 48 48 49 49
Number of Calls Answered 7,132 7,579 8,230 9,052 10,480 Number of Stations 1 1 1 1 1
Number of Police Officers 65 67 73 73 73
Number of Volunteers 62 71 65 17 (1) 56
Number of Support Personnel 33 33 40 36 38
Number of Calls Answered 43,229 42,114 50,094 46,874 44,791 Park Sites 69 696970 71
Acres of Parks 382 465 465 470 474
Senior Centers 1 1 1 1 1
Swimming Pools 2 2 2 2 2
Tennis Courts 8 8 8 8 8
Pickle Ball Court 1
Number of Park/Golf Trees 7,600 7,600 5,000 5,000 5,000 Number of Street Trees 18,700 18,700 12,500 12,675 12,500 Acres of Golf Course 111 111 111 111 111
Public Libraries 1 1 1 1 1
Landscape Maintenance Districts 29 29 29 29 29
Benefit Area District 44 4 4 4
Community Facility Districts 10 121216 19
Miles of Streets 259 271 271 275 280
Number of Street Lights 5,443 5,603 5,603 5,650 5,650
Number of Meters 22,380 22,920 23,329 24,906 26,475
Miles of Water Mains 298 299 299 320 338
Average Daily Consumptions (Gal) 10.498 MGD 10.498 MGD 11.943 MGD 13.643 MGD 12.90 MGD Number of Connections 21,951 22,529 23,094 24,411 25,730 Miles of Sewer Lines 257 258 258 272 273
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 6.21 MGD 6.21 MGD 6.21 MGD 6.83 MGD 7.30 MGD Treatment Capacity 9.87 MGD 9.87MGD 9.87MGD 9.87 MGD 9.87 MGD Number of Accounts 22,080 22,641 23,215 24,541 25,867
Elementary Schools 20 20 20 19 15
High Schools 5 5 5 5 5
Alternative Schools 3 3 3 2 2
Adult Education 1 1 1 1 0
Charter School 1 1 1 1 0
Teachers 1,092 1,099 1,099 1,242 707
Elementary Classrooms 899 884 884 550 593
High School Classrooms 457 445 445 272 331
Adult Education Classrooms 3 3 3 Not Available 21
Current Enrollment 23,852 23,599 23,599 24,061 15,458
Source: City of Manteca Budget Document
Manteca Fire Department Annual Report
Various Manteca Unified School District Records
City of Manteca
Note: n/a denotes information not available.
* Includes the Fire Department's Chief Officers
** Updated numbers from Muni Service Sales Tax Analysis *** New State Mandates require reserves to be as fully trained as a full-time Firefighter, making it difficult to retain individuals as reserves when they can move on to full-time firefigher employment.
Population
Fire Protection
Education
Solid Waste
Wastewater
Water Utility
Public Works
Police Protection
Parks & Recreation
171 ATTACHMENT 1
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ATTACHMENT 1
MANTECA FINANCING AUTHORITY
BASIC COMPONENT UNIT
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
ATTACHMENT 1
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ATTACHMENT 1
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the
Board of Directors of the Manteca Financing Authority
Manteca, California
Report on Financial Statements
We have audited the accompanying financial statements of the 2009 Sewer Revenue Bonds Fund (Fund) of the Manteca Financing Authority (Authority), California, a component unit of the City of Manteca, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
175 ATTACHMENT 1
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the 2009 Sewer Revenue Bonds Fund of the Authority, as of June 30, 2021, and the change in financial position and, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
As discussed in Note 1, the financial statements present only the Authority and do not purport to, and do not present fairly the financial position of the City of Manteca as of June 30, 2021, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Required Supplementary Information
The Authority has omitted the Management’s Discussion and Analysis that governmental accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements are not affected by this missing information.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 2, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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.
Pleasant Hill, California
August 2, 2023
176 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
STATEMENT OF NET POSITION AND
STATEMENT OF REVENUES AND
CHANGES IN NET POSITION
The purpose of The Statement of Net Position and the Statement of Revenues and Changes in Net Position is to summarize the entire Authority’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the Authority’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses.
The Statement of Net Position reports the difference between the Authority’s total assets and deferred outflows of resources and the Authority’s total liabilities and deferred inflows of resources, including all the Authority’s long-term debt. The Statement of Net Position summarizes the financial position of all the Authority’s activities in a single column.
The Statement of Revenues, Expenses, and Changes in Net Position reports increases and decreases in the Authority’s net position. It is also prepared on the full accrual basis, which means it includes all the Authority’s revenues and all its expenses, regardless of when cash changes hands. 177 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
STATEMENT OF NET POSITION
JUNE 30, 2021
2009
Sewer
Revenue Bonds
ASSETS
Current Assets:
Investments held by trustee (Note 2) $1,899,827
Interest receivable 88,230
Total Current Assets 1,988,057
Receivable from the City of Manteca (Note 3) 17,100,173 Total Assets 19,088,230
LIABILITIES
Current Liabilities:
Accrued interest payable 88,230
Total Current Liabilities 88,230
Non-Current Liabilities:
Lease revenue bonds payable (Note 4)
Due in more than one year 19,000,000
Total Liabilities 19,088,230
NET POSITION
Restricted for Debt Service
Total Net Position
See accompanying notes to financial statements
178 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
2009
Sewer
Revenue Bonds
OPERATING REVENUE
Interest on base rental payments $1,059,211
Operating Revenue 1,059,211
OPERATING EXPENSES
Interest and fiscal fees 1,058,762
Total Operating Expenses 1,058,762
Operating Loss 449
NONOPERATING INCOME
Interest on investments (449)
Net Nonoperating Income (449)
Change in net position
Net position at beginning of year
Net position at end of year
See accompanying notes to financial statements
179 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
2009
Sewer
Revenue Bonds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from the City $1,032,838
Payments to bond trustees (1,058,763)
Cash Flows from Operating Activities (25,925)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment interest received (449)
Cash Flows from Investing Activities (449)
Net Cash Flows (26,374)
Cash and investments at beginning of period 1,926,201
Cash and investments at end of period $1,899,827
Reconciliation of operating loss to net cash flows
from operating activities:
Operating loss $449
Change in assets:
Receivables, net (26,374)
Cash Flows from Operating Activities ($25,925)
See accompanying notes to financial statements
180 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization and Purpose
The Manteca Financing Authority is a Joint Powers Authority organized by the City of Manteca and the Manteca Redevelopment Agency on May 1, 1991 under the laws of the State of California. The Authority was organized to provide assistance to the City and Agency in financing public improvements for the benefit of the residents of the City and surrounding areas. Administrative and related normal business expenses incurred in the day-to-day operations of the Authority are provided by the City and are not included in the accompanying financial statements. Such expenses are insignificant to the Authority’s operations.
The Authority is an integral part of the City and the accompanying financial statements are included as a component of the basic financial statements prepared by the City. A component unit is a separate governmental unit, agency, or nonprofit corporation which, when combined with all other component units, constitutes the reporting entity as defined in the City’s basic financial statements.
B. Basis of Presentation
The Authority’s Basic Component Unit Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.
These Standards require that the financial statements described below be presented.
Fund Financial Statements: The fund financial statements provide information about the Authority's funds. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. The Authority considers its only fund to be a major fund.
C. Basis of Accounting
The Authority accounts for all transactions in a single enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those of the private sector in which the purpose is to conserve and add to economic resources.
Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges.
The financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
D. Major Fund
The Authority’s only fund is required to be identified as a major fund and presented in the fund financial statements. Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenses equal to ten percent of their fund-type total and five percent of the grand total. 181 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Authority reported its only fund, the 2009 Sewer Revenue Bonds Enterprise Fund as a major enterprise fund in the accompanying financial statements, and the fund is used to account for Bond transactions.
E. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Authority categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
F. Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
NOTE 2 - INVESTMENTS HELD BY TRUSTEE
The Authority invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.
The Authority’s investments are carried at fair value, as required by generally accepted accounting principles. The Authority adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
182 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 2 - INVESTMENTS HELD BY TRUSTEE (Continued)
A. Investments Authorized by Debt Agreements
In accordance with the Lease Revenue Bond Indenture of Trust, a Trustee holds the portion of Bond proceeds established as reserves for debt service on these Bonds. The California Government Code requires these funds to be invested in accordance with bond indentures or State statutes. The table below identifies the investment types and their minimum credit ratings that are authorized for investments held by trustee and certain provisions of the debt agreement. The bond indenture contains no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type.
Minimum
Maximum Credit
Authorized Investment Type Maturity Quality
United States Treasury Bill, Bonds, Notes 5 years N/A
United States Government Agency Obligations 5 years N/A Bankers' Acceptances 30 days to 1 year A-1
Commercial Paper 270 days to 1 year A-1
Certificates of Deposit 30 days to 5 years None to A
Repurchase Agreements None to 30 days A-1
Local Agency Investment Fund n/a Not rated
Money Market Funds n/a AA-m
Investment Agreements None None to AA
State and Municipal Bonds, Notes None Two Highest Categories B. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.
Information about the sensitivity of the fair values of the Authority’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority’s investments by maturity:
12 Months
Investment Type or Less
Held by Trustees:
Money Market Funds (U.S. Securities) $1,899,827
C. Credit Risk
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. The actual rating as of June 30, 2021 for the Money Market Funds was AAAm as provided by Standard & Poor’s investment rating system. Money market funds are available for withdrawal on demand and at June 30, 2021 have an average maturity of 10 days.
183 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 2 - INVESTMENTS HELD BY TRUSTEE (Continued)
D. Fair Value Hierarchy
The Authority categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Authority’s money market funds are measured at amortized cost and are categorized as Level 2 as of June 30, 2021.
NOTE 3 - RECEIVABLE FROM THE CITY OF MANTECA
The Authority used the proceeds from its Bond issues to finance capital improvements throughout the City. The City leases these improvements from the Authority under the terms of the lease agreement that expires in 2037.
Anticipated receipts of the base rental payments, net of cash and investments held by trustee, capitalized interest proceeds and interest expense net of anticipated interest earned on the investments, are as follows:
Year ending
June 30 Principal Interest Total
2022 $1,058,647 $1,058,647
2023 1,058,647 1,058,647
2024 1,058,647 1,058,647
2025 $560,000 1,044,996 1,604,996
2026 640,000 1,015,346 1,655,346
2027-2031 4,395,000 4,465,394 8,860,394
2032-2036 9,870,000 2,806,998 12,676,998
2037 3,535,000 101,514 3,636,514
$19,000,000 $12,610,189 31,610,189
Less:
Investments held by trustee 1,899,827
Amount representing interest 12,610,189
Receivable from the City of Manteca at June 30, 2021 $17,100,173 184 ATTACHMENT 1
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 4 - LONG TERM DEBT
On May 27, 2009 the Authority issued the 2009 Sewer Revenue Bonds Series 2009 in the amount of $19,000,000 to finance the City’s expansion and upgrade of its Wastewater Quality Control Facility.
The 2009 Revenue Bonds are secured by installment payments payable by the City of Manteca under the Installment Sales Agreement dated December 1, 2003, as amended by Amendment 1 dated June 1, 2009. The installment payments are special limited obligations of the City and are secured by a pledge of and lien on the net revenues of the City’s sewer system.
On July 5, 2023, Moody’s Investors Service withdrew the City’s issuer rating and also withdrew it’s rating of the 2009 Revenue Bonds, due to the City’s delay in issuing the audited financial statements.
In addition, Fitch Ratings withdrew its AA- rating for the 2009 Revenue Bonds for the same reason.
Annual debt service requirements are shown below for the long-term debt:
Year ending June 30 Principal Interest Total
2022 $1,058,647 $1,058,647
2023 1,058,647 1,058,647
2024 1,058,647 1,058,647
2025 $560,000 1,044,996 1,604,996
2026 640,000 1,015,346 1,655,346
2027-2031 4,395,000 4,465,394 8,860,394
2032-2036 9,870,000 2,806,998 12,676,998
2037 3,535,000 101,514 3,636,514
$19,000,000 $12,610,189 $31,610,189
185 ATTACHMENT 1
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ATTACHMENT 1