Annual Comprehensive
Financial Report
FISCAL YEAR ENDED JUNE 30, 2023
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CITY OF MANTECA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
Prepared by
FINANCE DEPARTMENT
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CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
INTRODUCTORY SECTION:
Table of Contents .................................................................................................................................................. A-1 Letter of Transmittal ............................................................................................................................................. B-1 Mayor and City Council and Executive Team ..................................................................................................... C-1 California Map ...................................................................................................................................................... C-2 Citywide 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 ...................................................................................................................... 20 Statement of Activities .......................................................................................................................... 21 Fund Financial Statements:
Governmental Funds:
Balance Sheet ..................................................................................................................................... 24 Reconciliation of the Governmental Funds Balance Sheet with the Governmental Activities Net Position .......................................................................................... 25 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 26 Reconciliation of the Net Change in Fund Balances Governmental Funds with the Change in Net Position Governmental Activities ............................................... 27 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
General Fund ............................................................................................................................... 28 Low and Moderate Income Housing Assets Special Revenue Fund .......................................... 30 Homeless Navigation Center Special Revenue Fund .................................................................. 31 A-1
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
FINANCIAL SECTION (Continued):
Proprietary Funds:
Statement of Net Position ...................................................................................................................... 34 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................. 35 Statement of Cash Flows ...................................................................................................................... 36 Fiduciary Fund:
Statement of Fiduciary Net Position ..................................................................................................... 40 Statement of Changes in Fiduciary Net Position .................................................................................. 41 Notes to Basic Financial Statements ........................................................................................................ 43 Required Supplementary Information:
Pension Plans:
Miscellaneous Plans:
Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 112 Schedule of Contributions ........................................................................................................ 114 Safety Plan
Schedule of Proportionate Share of the Net Pension Liability ................................................. 115 Schedule of Contributions ........................................................................................................ 116 PARS Enhancement Excess Benefit:
Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 117 Schedule of Contributions ........................................................................................................ 118 Other Post-Employment Benefits Plan:
Schedule of Changes in the Total OPEB Liability and Related Ratios ...................................... 119 A-2
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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:
Special Apportionment Streets Fund ......................................................................................... 124 Public Facilities Implementation Plan Fund .............................................................................. 125 Non-major Governmental Funds:
Combining Balance Sheet .................................................................................................................... 132 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 138 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ....................................................................................................................... 144 Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 156 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 157 Combining Statements of Cash Flows ............................................................................................ 158
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................. 162 Changes in Net Position – Last Ten Fiscal Years ................................................................................... 164 Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................................. 166 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................ 168 General Revenues by Source – Last Ten Fiscal Years ............................................................................. 170 General Expenditures by Function – Last Ten Fiscal Years ................................................................... 171 A-3
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
STATISTICAL SECTION (Continued):
Revenue Capacity:
Assessed and Estimated Value of Taxable Property – Last Ten Fiscal Years ........................................ 172 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ..................................................... 173 Principal Property Taxpayers – Current Year and Nine Years Ago ....................................................... 174 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 175 Manteca Redevelopment Project Area No. 1 Top Twenty Assessed Values ......................................... 176 Manteca Redevelopment Project Area No. 2 Top Twenty Assessed Values ......................................... 177 Manteca Redevelopment Merged Project Area (2005 Merged Project Amended Area) Top Twenty assessed Values ............................................................................................................. 178 Manteca Redevelopment Amended Merged Project Area
Top Twenty Assessed Values (2004 Amended Area) ....................................................................... 179 Taxable Sales by Category – Last Ten Calendar Years ......................................................................... 180 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ......................................................... 182 Principal Sales Tax Payers – Current Year and Nine Years Ago ........................................................... 183 Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 184 Computation of Direct and Overlapping Debt ........................................................................................ 185 Computation of Legal Bonded Debt Margin .......................................................................................... 186 Revenue Bond Coverage – Water Revenue Bonds – Last Ten Fiscal Years .......................................... 187 Revenue Bond Coverage – Sewer Revenue Bonds – Last Ten Fiscal Years.......................................... 188 Bonded Debt Pledged-Revenue Coverage – Redevelopment Agency Tax Allocation Bonds – Last Ten Fiscal Years .................................................................................................................... 189 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ........................................................ 190 Principal Employers – Current Year and Nine Years Ago ..................................................................... 191 Operating Information:
Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................... 192 Operating Indicators and Capital Asset Statistics Function/Program – Last Ten Fiscal Years .............. 194 A-4
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
FINANCING AUTHORITY SECTION:
Independent Auditor’s Report ........................................................................................................................ 199 Authority-wide Financial Statements:
Statement of Net Position ...................................................................................................................... 204 Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 205 Statement of Cash Flows ...................................................................................................................... 206 Notes to Basic Component Unit Financial Statements ......................................................................... 207 A-5
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CITY OF MANTECA
FINANCE DEPARTMENT
1001 W. Center St.
Manteca, CA 95337
Office: 209.456.8785
October 14. 2024
Honorable Mayor, Members of the City Council, and Residents of Manteca:
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of Manteca, California, for the fiscal year (FY) ended June 30, 2023. The City of Manteca 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 of Manteca. 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) with the City funds 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 of Manteca 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 made the election 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 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.
The activities and net position information for the Private-Purpose Trust Fund can be found in the Fiduciary Financial Statements section.
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Transmittal Letter Page | 2
Additionally, under the provision of ABX1 26 and pursuant to Health and Safety Code Section 34176(b), the City could elect to become the Housing Successor and retain the housing assets. 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.
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 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 into districts and serve staggered fouryear terms. 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 has continued to grow. The City’s recovery from the Great Recession continued throughout 2020 and 2021 even when considering 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 revenue was 4.3% higher than for the same period last year. The total property tax received of $25.6 million included one-time payments of residual taxes due to the dissolution of the former Redevelopment Agencies. Property tax, net of the residual,was $21.9 million or a 2.4% increase when compared to the prior year.
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Transmittal Letter Page | 3
Despite the business restrictions brought on by the increase in interest rates, the pace of housing construction has continued relatively unabated, with 532 permits issued during FY 2022-23 from July 1, 2022, through June 30, 2023, and 317 permits issued during the first half of FY 2023-24 from July 1, 2023, through December 31, 2023. Building activity typically ramps up during the spring and summer of each year and the period from January 1, 2023, through December 31, 2023, averaged 48 new permits each month, and a total of 571 during the calendar year. Permit activity over the last half of FY2023-24 has seen considerable increases as well with 661 permits issued from January 1, 2024, through June 30, 2024, and a total of 978 permits issued during FY2023-24.
As of June 30, 2023, 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 2022 statewide unemployment rate at 4.6%, San Joaquin County at 6.2% and 4.7% for Manteca. Reflective of an economy that is continuing to recover from the global pandemic, unemployment rates continue to be down from June 2021 when the statewide unemployment rate was 7.7%, San Joaquin County was 9.6%, and the City of Manteca was 9.5%.
Budgetary Control
By June 30 of every year, the City prepares an annual budget for the subsequent fiscal year. 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 fund level for all 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 longterm financial planning strategies designed to meet Council's goals and priorities. The City annually adopts a Capital Improvement Plan budget that supports the Council’s goals and priorities. Projects 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, 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.
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Transmittal Letter Page | 4
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.
Acknowledgments
Completion of the Annual Comprehensive Financial Report was made possible by the dedicated service of Finance Department staff, whose work has our sincere appreciation. Additional thanks are due to staff in other City Departments who spent time answering questions and providing information. Appreciation is also extended to the City’s auditors Maze and Associates for their assistance.
Respectfully submitted,
Shay Narayan
Finance Director
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Mayor and City Council1
Fiscal Year 2022-2023
Gary Singh, Mayor
Mike Morowit, Vice Mayor
Jose Nuno, Councilmember
David Breitenbucher, Councilmember
Charlie Halford, Councilmember
Executive Team2
Toni Lundgren, City Manager
Jose Jasso, Assistant City Manager
David Nefouse, City Attorney
Cassandra Candini-Tilton, Director of Legislative Services/ City Clerk Stephanie Van Steyn, Director of Human Resources
Pennie Arounsack, Director of Information Technology & Innovation Shay Narayan, Director of Finance
Carl Brown, Director of Public Works
Kevin Jorgensen, Director of Engineering
Barb Harb, Interim Director of Development Services
Stephen Schluer, Chief of Police
Dave Marques, Chief of Fire
1 City Councilmembers were as of June 30, 2023
2 Executive Team is as of March 2024 C-1
•Manteca
C-2
Voters of Manteca
Mayor and City Council
Office of the City
Manager
Police Chief Fire Chief
Director of
Development
Services
Director of
Engineering
Director of
Public
Works
Director of
Legislative
Services/ City
Clerk
Director of
Finance
Director of
Information
Technology &
Engagement
Director of
Human
Resources
City Attorney
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Manteca, California
Report on the Audit of the Financial Statements
Opinions
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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023 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.
Basis for Opinions
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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements 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, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 96 – Subscription-Based Information Technology Arrangements (SBITAs), which became effective during the year ended June 30, 2023 and required the restatement of certain balances as discussed in Note 9E to the financial statements.
The emphasis of this matter does not constitute a modification to our opinions. 2 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with 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.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 14, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
October 14, 2024
4 MANAGEMENT’S DISCUSSION AND ANALYSIS
The Management’s Discussion and Analysis provides an overview of the City of Manteca’s financial performance for the fiscal year ended June 30, 2023. This report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standard Board (GASB). The City encourages readers to 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 2022-23 fiscal year (FY) by $899.9 million (Net Position). Of this amount $661.9 million reflects investments in capital assets, debt service and legally segregated taxes, grants, and fees; $217.8 million is Restricted Net Position, of which a substantial portion is associated with the City’s reserve policy; and $20.2 million is the combined Unrestricted Net Position. The combined Unrestricted Net Position reflects the inclusion of a Net Pension Liability of $142.2 million and a total Other Post-Employment Benefits (OPEB) Liability of $37.9 million in accordance with the GAAP.
• As of June 30, 2023, the governmental activities reported a total net position of $603.6 million including:
$439.4 million net investment in capital assets, $217.8 million in restricted net position, and a combined unrestricted balance of $(53.6) million.
• Business-type activities reported a combined net position of $296.3 million including: $222.5 million net investment in capital assets, and $73.8 in unrestricted net position. • Governmental capital assets increased by $18 million in comparison to prior year assets representing additions such as land, streets, storm drainage, equipment, and construction in progress. The increase is also reflected in the governmental activities’ net investment in capital assets. • The City’s total liabilities increased by $67.6 million over the prior year, primarily due to increases in net pension and other post-employment benefits (OPEB). While a portion of these increases can be attributed to changes in assumptions made by the actuaries, much of the increase stems from under-performing investment returns.
• As of June 30, 2023, the fund balance for the General Fund was $40.5 million including: $1.2 million for Non-Spendable items such as deposits, prepaid assets, advances from other funds, and inventory; $0.4 million of Restricted; $28.4 million Assigned for items such as economic revitalization and public facilities oversizing; and $10.5 million Unassigned.
• In Fiscal Year 2022-23, the City determined that Transit operations were best classified as a business-type activity rather than a governmental activity as previously reported. A difference exists within the governmental and business-type reports for Transit only activities. In Fiscal Year 2021-22, Transit reported $3.4 million in revenues and $3.4 million in expenses. In Fiscal Year 2022-23, the operating revenue totaled $0.1 million and the operating expense totaled $3.4 million. The operating deficit is funded through local and federal grants reported in the nonoperating revenue category, which totaled $3.5 million in fiscal year 2024.
5 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 within the Annual Comprehensive Financial Report, which is 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
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), and conversely revenues and expenses not being reported for some items that have already affected cash flows (unearned revenues for unexpended grand funding).
Both Government-wide financial statements distinguish functions of the City that are principally supported by taxes, fees 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, solid waste and transit. Unlike governmental services, these services are meant to be 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.
6 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 (SA) to the Manteca Redevelopment Agency. The activities of the SA can be found in the Fiduciary Fund Section of the Financial Statements.
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 for the City’s General Fund and other Major Governmental 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 asset and liability 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. Subsequent schedules present the detail of these non-major 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 set of associated accounts that are used to capture and maintain control over resources that have been purposed 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 a variety of governmental funds of which several 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 businesstype 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, selfinsurance/risk management, and payroll tax benefits. The revenues for Internal Service Funds are eliminated in the City-wide financial statements and any related profits or losses are returned to the Activities which created them. 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. • 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.
7 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.
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 $899.9 million as of June 30, 2023. This is an increase of $65.5 million from June 30, 2022.
The following table reflects the Summary of Net Position for the Fiscal Year Ended June 30, 2023 with comparative data for the Fiscal Year Ended June 30, 2022.
Summary of Net Position as of June 30
(in thousands of dollars)
Governmental Activities
Business-Type
Activities Total Government
2023 2022* 2023 2022 2023 2022*
Cash and Other Assets $ 321,662 $ 282,795 $ 139,388 $ 128,797 $ 461,050 $ 411,592 Capital Assets 440,794 422,625 279,582 273,916 720,376 696,541 Total Assets 762,456 705,420 418,970 402,713 1,181,426 1,108,133
Deferred Outflows 48,943 27,842 11,993 6,308 60,936 34,150 Current Liabilities 63,291 46,365 30,117 26,639 93,408 73,004 Non-Current Liabilities 4,007 3,118 53,565 57,379 57,572 60,497 Net Pension & OPEB Liability 131,899 94,551 48,206 35,449 180,105 130,000 Total Liabilities 199,197 144,034 131,888 119,467 331,085 263,501
Deferred Inflows 8,604 37,144 2,787 7,296 11,391 44,440 Net Investment in Capital
Assets 439,386 422,120 222,480 220,696 661,866 642,816
Restricted Net Position 217,804 197,203 - - 217,804 197,203 Unrestricted Net Position (53,592) (67,239) 73,808 61,562 20,217 (5,677) Total Net Position $ 603,598 $ 552,084 $ 296,288 $ 282,258 $ 899,886 $ 834,342 * Not restated for the effects of the current year implementation of GASB Statement No. 96, Subscription Based Information Technology Arrangements (SBITAs)
8 The City’s Government-wide Net Position as of June 30, 2023, comprised the following:
• Cash and investments comprised $371.6 million, an increase of $51.2 million over the prior year.
Restricted cash held by fiscal agents and investments totaled $18.1 million, a decrease of $10.3 million. • Total Governmental and Business-type receivables were comprised of $48.0 million in current receivables and $22.7 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 lowto-moderate-income housing, as well as leases receivable. The grants and loans have varying repayment terms and interest rates.
• Net investment in capital assets of $661.9 million include the City’s infrastructure in addition to all other City assets, net of the debt incurred to construct and/or acquire those assets. Net capital assets increased $23.8 million primarily from the construction and acquisition of new roads and streets with the largest new assets being the completed Highway 120 and Union Interchange at over $32.0 million. • Restricted Net Position, totaling $217.8 million, includes $150.1 million restricted for capital projects, $34.0 million restricted for redevelopment projects, and $33.7 million restricted for other projects as specified by funding source restrictions.
• The combined Unrestricted Net Position totals $20.2 million, which if positive, would be designated for 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 $142.2 million and the Total OPEB Liability of $37.9 million.
The Change in Net Position as expressed as the change in revenues and expenses through June 30, 2023 is further reflected in the Statement of Activities shown below.
9 Statement of Activities
Fiscal Year Ended June 30,
(in thousands of dollars)
Governmental Activities
Business-Type
Activities Total Government
2023 2022* 2023 2022 2023 2022*
Program Revenues:
Charges for Services $ 23,033 $ 24,032 $ 62,624 $ 65,215 $ 85,657 $ 89,247 Operating Grants & Contributions 8,726 13,069 3,535 6,000 12,261 19,069 Capital Grants & Contributions 52,366 39,062 4,229 2,380 56,596 41,442 General Revenues:
Property Taxes 25,661 21,444 - - 25,661 21,444
Sales Taxes 29,324 28,438 - - 29,324 28,438
Other Taxes 10,219 9,577 - - 10,219 9,577
Interest Income 4,532 (3,237) 1,891 (1,755) 6,423
(4,992)
Development agreements 368 1,173 - - 368 1,173
Other Revenue 1,408 908 366 1,354 1,774 2,262
Gain from Sale of Capital Assets - 30 - - - 30
Total Revenues 155,637 134,496 72,645 73,194 228,282 207,690
Governmental Activities Expenses:
General Government $10,151 5,494 - - 10,151 5,494
Community Development 14,922 15,022 - - 14,922 15,022
Public Safety 36,874 54,117 - - 36,874 54,117
Library 146 124 - - 146 124
Public Works 17,005 12,813 - - 17,005 12,813
Recreation 6,081 6,821 - - 6,081 6,821
Streets and Highways 12,874 12,042 - - 12,874 12,042
Interest and fiscal charges 89 86 - - 89 86
Business-Type Activities:
Water - - 20,450 19,514 20,450 19,514
Wastewater - - 22,409 21,604 22,409 21,604
Solid Waste - - 16,728 15,402 16,728 15,402
Golf - - 1,636 1,756 1,636 1,756
Transit - - 3,377 - 3,377 -
Total Expenses 98,142 106,519 64,600 58,276 162,742 164,795 Increase (Decrease) in Net
Position Before Transfers 57,495 27,977 8,045 14,918 65,541 42,895 Transfers (5,985) (472) 5,985 472 - -
Change in Net Position 51,510 27,505 14,030 15,390 65,541 42,895 Net Position - Beginning 552,088 524,579 282,258 266,868 834,345 791,447 Net Position - Ending $ 603,598 $ 552,084 $ 296,288 $ 282,258 $ 899,886 $ 834,342 * Not restated for the effects of the current year implementation of GASB Statement No. 96, Subscription Based Information Technology Arrangements (SBITAs)
10 Revenues
Total government-wide revenues increased by $20.6 million, or 9.9% over the prior year to a total of $228.3 million. Governmental Activities charges for services decreased by $1.0 million compared to the prior year while operating and capital grants and contributions increased by $9.0 million. Business-type Activities charges for services decreased by $2.6 million and operating and capital grants and contributions decreased by $0.6 million compared to the prior year.
General Revenues increased by $15.8 million including: increase in property taxes of $4.2 million, increase in sales taxes of $0.9 million, increase in other taxes of $0.6 million, increase in interest income of $11.4 million, a decrease in development agreements of $0.8 million, and a decrease in other revenue of $0.5 million.
Expenses
Expenses for the City totaled $162.7 million for the fiscal year ending June 30, 2023, a decrease of $2.1 million, or 1.3% over the prior year. Governmental activities incurred $98.1 million of expenses. While business-type activities incurred $64.6 million in expenses. Of the Governmental Activities, the largest expenses by activity were in Public Safety $36.9 million, Public Works $17.0 million, Community Development $14.9 million, and Streets & Highways $12.9 million. Of the Business-type activities, the largest expenses by activity were Sewer at $22.4 million and Water at $20.5 million for the year.
Governmental Activities
As presented in the following two graphs, the largest funding sources for governmental activities are Taxes (41.9%) and Charges for Services (14.8%). The largest uses of resources for the governmental activities are Public Safety (37.6%) and Public Works (17.3%).
Revenues by Source – Governmental Activities
Charges for Services
14.8%
Grants and
Contributions
39.3%
Taxes
41.9%
Other Revenue
4.0%
11 Expenses by Program – Governmental Activities
Business-type Activities
In the Statement of Revenues, Expenses, and Changes in Fund Net Position for Enterprise Funds, operating income (loss) of Business-type Activities decreased by $11.3 million. Net operating income for water decreased by $5.3 million, wastewater decreased $1.5 million, solid waste decreased $1.3 million.
Net Operating Income (Loss) – Business-Type Activities
General Government
10.4%
Community
Development
15.2%
Public Safety
37.6%
Library
0.1%
Public Works
17.3%
Parks and Recreation
6.2%
Streets and Highways
13.1%
Interest and Fiscal Charges
0.1%
12 FUND FINANCIAL ANALYSIS
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, 2023, the City’s governmental funds reported combined fund balances of $217.9 million, which is an increase of $20.2 million or 10.2% compared with the prior year. Governmental fund revenues were $134.1 million this year, an increase of $6.8 million, or 5.4%. The General Fund accounted for 51.8% of this revenue total. Expenditures were $113.7 million this year. Of this total, $64.6 million was in the General Fund, $17.1 million was in other major funds and $32.0 million was in non-major funds.
General Fund
General Fund revenues increased in Fiscal Year 2022-23 by $6.9 million or 11.0% as compared to Fiscal Year 2021-22. Sales tax increased by 4.3%, property taxes increased 19.7%, and other taxes increased 2.2%. General Fund expenditures increased by $3.2 million or 5.2% more than the prior year expenditures.
At June 30, 2023, the General Fund balance was comprised of $1.2 million in non-spendable balances, $0.4 million in restricted balances, $28.4 million of assigned balances and $10.5 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 previously provided by the Manteca Redevelopment Agency.
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 $46.6 million at year end an increase of 14.2% over the prior year. Revenues totaled $9.5 million for the year and expenditures were $3.7 million which includes $3.3 million of capital outlay for construction projects in Fiscal Year 2022-23.
13 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, the Golf Fund and the Transit Fund. Proprietary Fund net position totaled $296.3 million at June 30, 2023. Proprietary operating revenues were $63.0 million and operating expenses were $62.1 million in fiscal year 2022-23.
Water Fund
The net position of the Water Fund is $103.3 million, consisting of $43.9 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 $18.8 million in operating revenues for the current year and $19.5 million in operating expenses. Charges for services showed a decrease of 13.9% as compared to the prior year.
Operating expenses increased by 13.1% from fiscal year 2021-22. The most notable increases in operating expenses year over year were in Supplies by greater than $1 million due to increased purchased water costs, and Personnel Services by greater than $375 thousand due to increased pension costs.
Sewer Fund
The net position of the Sewer Fund is $185.8 million for the current year. Of the $185.8 million, $148.1 million of the fund’s net position is invested in capital assets with $37.8 million unrestricted. Operating revenues for the year were $26.1 million, a decrease of 2.4% from the prior year. Operating expenses increased by $0.9 million or 4.4% over the prior year. The most notable increases in operating expenses were in Contractual Services by greater than $550 thousand, Personnel Services by nearly $400 thousand, and Repairs and Maintenance by greater than $265 thousand. Supplies costs decreased by $916.1 thousand as compared to the prior year primarily due to Chemicals and UV System Supplies.
Solid Waste Fund
Operating revenues for Fiscal Year 2022-23 totaled $16.4 million, an increase of 0.5% over the prior year.
Operating expenses were $16.7 million an increase of 8.7% from the prior year, leaving the fund with a net operating loss of $(0.4) million for the year. The most notable increases in operating expenses were in Contractual Services by nearly $700 thousand and Vehicle Maintenance and Operations by nearly $300 thousand. There was a decrease in Personnel Services costs by $220 thousand. Net position of the Solid Waste Fund is $0.5 million, of which $6.4 million is invested in capital assets and $(5.9) million is unrestricted. Longterm liabilities total $15.0 million, with $10.5 million for net pension liability and $4.5 million for total OPEB liability. These long-term liabilities result in the fund having a negative unrestricted net position.
Golf Fund
The operating revenue for this fund totaled $1.6 million as of June 30, 2023, a decrease of 6.3%. Operating expenses totaled $1.6 million, a decrease of 6.8% from the prior year. Net position of the Golf Fund is $0.7 million, of which $1.9 million is invested in capital assets and $(1.1) million is unrestricted. Long-term liabilities total $2 million, with $1.2 million for net pension liability and $.7 million for total OPEB liability. These longterm liabilities result in the fund having a negative unrestricted net position. The General Fund has subsidized this fund when necessary.
14 Transit Fund
The operating revenue for this fund totaled $0.1 million as of June 30, 2023. Operating expenses totaled $3.4 million. Net position of the Transit Fund is $6.0 million, of which $6.8 million is invested in capital assets and $(0.8) million is unrestricted. Long-term liabilities total $2.1 million, with $0.6 million for net pension liability and $1.5 million for total OPEB liability. These long-term liabilities result in the fund having a negative unrestricted net position.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget for the General Fund totaled $65.0 million in revenues, $65.8 million in expenditures, with expenditures exceeding revenues by $0.8 million. The difference between the original budget and the final amended budget was a decrease in revenues of $1.4 million and an increase in expenditures of $0.7 million.
Charges for current services and other taxes accounted for the decrease in revenues, while a variety of departmental charges accounted for the increase in expenditures.
General Fund revenues in total exceed their final budgeted forecasts by $4.5 million. Property taxes, sales taxes and other taxes exceeded their final budgeted forecasts by a combined total of $2.7 million, while Fines and forfeitures were under budget forecasts by $0.07 million. Use of money and property, charges for current services and other revenue account for the majority of the remaining variance. At the end of the fiscal year, the total actual expenditures of the General Fund were $64.6 million which was $1.2 million less than the total final amended budget.
CAPITAL ASSETS
At the end of Fiscal Year 2022-23, the City had $720.4 million, net of depreciation, invested in a broad range of capital assets used in governmental and business type activities as outlined in Note 7. 15 Capital Assets
Fiscal Year Ended June 30,
(in thousands of dollars)
Governmental Activities Business-Type Activities Total Government 2023 2022* 2023 2022 2023 2022*
Land $ 63,067 $ 61,306 $ 4,394 $ 4,394 $ 67,461 $ 65,700 Subscription assets in
progress 109 - - - 109 -
Construction in
Progress 32,217 50,121 27,093 26,881 59,310 77,002
Buildings &
Improvements 36,759 43,510 18,564 9,411 55,323 52,921
Intangible right-to-use
equipment 635 635 22 22 657 657
Machinery &
Equipment 28,716 29,905 31,261 26,674 59,977 56,578
Intangible right-to-use
building 29 29 23 24 52 53
Storm Drain 68,924 64,027 -
- 68,924 64,027
Streets 331,865 287,206 -
- 331,865 287,206
Parks 79,998 76,441 -
- 79,998 76,441
Subscription assets 1,400 - -
- 1,400 -
Sewer lines and
improvements - - 76,585 74,287 76,585 74,287
Sewer plant expansion - - 128,915 134,388 128,915 134,388 Water wells and
pipelines - - 152,733 149,849 152,733 149,849
Other Infrastructure - - 165 165 165 165
Less accumulated
depreciation (202,925) (190,555) (160,173)
(152,179) (363,098) (342,734)
Total $ 440,794 $ 422,625 $ 279,582 $ 273,916 $ 720,376 $ 696,541 * Not restated for the effects of the current year implementation of GASB Statement No. 96, Subscription Based Information Technology Arrangements (SBITAs)
16 DEBT SERVICE ADMINISTRATION
Each of the City’s debt issuances is discussed in detail in Note 8. At the end of the year, the City had zero longterm outstanding debt associated with Governmental Activities and $57.1 million in debt associated with Business-type Activities. Debt in the Business-type Activities is 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 2023 2022 2023 2022 2023 2022
Revenue Bonds - - 57,079 60,666 57,079 60,666
Total $ - $ - $ 57,079 $ 60,666 $ 57,079 $ 60,666
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, Manteca, CA 95337 or [email protected]. 17 This Page Left Intentionally Blank
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. 19 CITY OF MANTECA
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments (Note 3) $245,067,955 $126,511,789 $371,579,744 Restricted cash and investments (Note 3) 9,521,223 8,595,190 18,116,413 Accounts receivable, net 20,379,987 16,793,054 37,173,041 Taxes receivable 10,304,866 10,304,866
Interest receivable 526,652 2 526,654
Prepaids and deposits 80,000 80,000
Internal balances (Note 4D) 12,511,405 (12,511,405)
Long-term notes receivable (Notes 5 and 16D) 22,580,115 22,580,115 Employee notes receivable (Note 6) 41,054 41,054
Capital assets, not being depreciated (Note 7) 95,392,678 31,487,143 126,879,821 Capital assets, being depreciated (net) (Note 7) 345,401,520 248,094,517 593,496,037 Leases receivable (Note 14) 648,470 648,470
Total Assets 762,455,925 418,970,290 1,181,426,215
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 43,760,686 9,416,824 53,177,510 Deferred outflows related to OPEB (Note 11) 5,181,762 2,576,076 7,757,838 Total Deferred Outflows of Resources 48,942,448 11,992,900 60,935,348
LIABILITIES
Accounts payable 7,567,760 3,897,454 11,465,214
Contracts payable (Note 16C) 10,940,972 17,593,801 28,534,773 Refundable deposits 2,872,539 1,834,571 4,707,110
Accrued liabilities 4,967,082 698,891 5,665,973
Unearned revenue 30,419,390 2,555,394 32,974,784
Compensated absences (Note 1G):
Due within one year 4,503,471 4,503,471
Due in more than one year 3,002,315 3,002,315
Estimated claims liability (Note 13):
Due within one year 1,566,296 1,566,296
Due in more than one year 49,346 49,346
Long-term debt (Notes 8, 14 and 15):
Due within one year 453,603 3,537,016 3,990,619
Due in more than one year 955,119 53,564,770 54,519,889 Net pension liability (Note 10):
Due in more than one year 108,905,556 33,341,890 142,247,446 Total OPEB liability (Note 11):
Due in more than one year 22,993,456 14,863,808 37,857,264 Total Liabilities 199,196,905 131,887,595 331,084,500
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions (Note 10) 3,306,435 3,306,435 Deferred inflows related to OPEB (Note 11) 4,668,665 2,787,269 7,455,934 Deferred inflows related to leases (Note 14) 628,544 628,544 Total Deferred Inflows of Resources 8,603,644 2,787,269 11,390,913 NET POSITION (Note 9):
Net investment in capital assets 439,385,476 222,479,874 661,865,350 Restricted for:
Capital projects 150,068,362 150,068,362
Redevelopment projects 34,030,869 34,030,869
Special revenue projects:
Development mitigation 11,177,039 11,177,039
Landscaping and lighting 1,476,977 1,476,977
Public safety 6,411,547 6,411,547
Other special revenue projects 14,639,271 14,639,271
Total Restricted Net Position 217,804,065 217,804,065
Unrestricted (53,591,717) 73,808,452 20,216,735
Total Net Position $603,597,824 $296,288,326 $899,886,150 See accompanying notes to basic financial statements
20 CITY OF MANTECA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
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 $10,150,611 $6,749,391 $2,310,410 ($1,090,810) ($1,090,810) Community development 14,921,624 6,254,666 482,142 (8,184,816) (8,184,816) Public safety 36,874,290 2,513,921 1,581,883 $1,072,949 (31,705,537) (31,705,537) Library 146,067 (146,067) (146,067)
Public works 17,004,659 2,542,957 29,623 10,267,088 (4,164,991) (4,164,991) Parks and recreation 6,080,603 4,971,913 15,642 8,440,734 7,347,686 7,347,686 Streets and highways 12,874,297 4,306,200 32,585,532 24,017,435 24,017,435 Interest and fiscal charges 89,385 (89,385) (89,385)
Total Governmental Activities 98,141,536 23,032,848 8,725,900 52,366,303 (14,016,485) (14,016,485) Business-type Activities:
Water 20,449,549 18,786,751 90 2,600,735 $938,027 938,027 Sewer 22,408,854 25,917,480 1,594,396 5,103,022 5,103,022 Solid waste 16,728,245 16,288,404 2,904 (436,937) (436,937) Golf 1,636,173 1,525,393 (110,780) (110,780)
Transit 3,377,255 105,822 3,534,920 31,426 294,913 294,913 Total Business-type Activities 64,600,076 62,623,850 3,535,010 4,229,461 5,788,245 5,788,245 Total $162,741,612 $85,656,698 $12,260,910 $56,595,764 (14,016,485) 5,788,245 (8,228,240) General revenues:
Taxes:
Property taxes 25,660,666 25,660,666
Sales taxes 29,324,167 29,324,167
Other taxes 10,218,719 10,218,719
Interest income 4,531,826 1,890,954 6,422,780
Development agreements, unrestricted 368,332 368,332
Other revenue 1,408,087 366,174 1,774,261
Transfers, net (Note 4A) (5,984,989) 5,984,989
Total general revenues and transfers 65,526,808 8,242,117 73,768,925 Change in Net Position 51,510,323 14,030,362 65,540,685 Net Position-Beginning, as Restated (Note 9E) 552,087,501 282,257,964 834,345,465 Net Position-Ending $603,597,824 $296,288,326 $899,886,150 See accompanying notes to basic financial statements
21 This Page Left Intentionally Blank
FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal 2023. 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.
HOMELESS NAVIGATION CENTER FUND
Established to account for the financing and construction activities associated with the regional low barrier emergency homeless shelter. Financing is provided by local, State and Federal Grants.
SPECIAL APPORTIONMENT STREETS FUND
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.
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. 23 CITY OF MANTECA
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
Low and Moderate Homeless Special Public Facilities Other Total Income Housing Navigation Apportionment Implementation Governmental Governmental General Assets Center Streets Plan Funds Funds
ASSETS
Cash and investments (Note 3) $25,915,351 $15,916,180 $39,938,772 $137,131,528 $218,901,831 Restricted cash and investments (Note 3) 448,821 $720,122 557,663 7,794,617 9,521,223 Accounts receivables (net of allowance for
estimated uncollectible accounts) 851,745 $13,521,432 2,868,502 3,130,219 20,371,898 Taxes receivable 7,541,932 2,762,934 10,304,866
Interest receivable 526,001 651 526,652
Due from other funds (Note 4B) 9,203,477 9,203,477
Prepaids and deposits 80,000 80,000
Advances to other funds (Note 4C) 1,081,780 10,662,296 11,744,076 Long-term notes receivable (Notes 5 and 16D) 540,000 22,927,939 23,467,939 Leases receivable (Note 14) 648,470 648,470
Total Assets $46,189,107 $23,648,061 $15,916,180 $13,521,432 $54,027,233 $151,468,419 $304,770,432
LIABILITIES
Accounts payable $4,031,599 $1,047,174 $669,396 $1,253,290 $7,001,459 Contracts payable 5 26,192 721,140 2,214 749,551
Refundable deposits 880,186 562 1,675,907 315,076 2,871,731 Accrued liabilities 22,060 22,060
Due to other funds (Note 4B) 6,256,856 657,626 6,914,482 Advances from other funds (Note 4C) 1,521,666 1,521,666 Unearned revenue $16,000,000 9,371,151 25,371,151
Total Liabilities 4,933,850 16,000,000 7,330,784 4,588,109 11,599,357 44,452,100
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 207,127 12,790,385 2,796,037 2,543,471 18,337,020 Unavailable revenue - notes receivable
(Notes 5 and 16D) 540,000 $22,927,939 23,467,939
Deferred inflows related to leases (Note 14) 628,544 628,544 Total Deferred Inflows of Resources 747,127 22,927,939 12,790,385 2,796,037 3,172,015 42,433,503
FUND BALANCES
Fund balance (Note 9):
Nonspendable 1,161,780 1,161,780
Restricted 448,821 720,122 46,643,087 136,954,596 184,766,626 Committed 292,905 292,905
Assigned 28,411,565 28,411,565
Unassigned 10,485,964 (83,820) (6,599,737) (550,454) 3,251,953 Total Fund Balances 40,508,130 720,122 (83,820) (6,599,737) 46,643,087 136,697,047 217,884,829 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $46,189,107 $23,648,061 $15,916,180 $13,521,432 $54,027,233 $151,468,419 $304,770,432 See accompanying notes to basic financial statements
24 CITY OF MANTECA
Reconciliation of the
GOVERNMENTAL FUNDS-BALANCE SHEET
with the
GOVERNMENTAL ACTIVITIES NET POSITION
JUNE 30, 2023
Total fund balances reported on the Governmental Funds Balance Sheet $217,884,829 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. 439,024,598
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 26,166,124
Accounts receivable 8,089
Employee notes receivable 41,054
Capital assets, not being depreciated 63,739
Capital assets (net of accumulated depreciation) 1,465,829 Contracts and accounts payable (566,301)
Accrued liabilities (4,943,230)
Refundable deposits (808)
Unearned revenue (5,048,239)
Compensated absences (7,505,786)
Estimated claims liability (1,615,642)
Net pension liability and deferred outflows/inflows related to pensions (2,579,326) Total OPEB liability and deferred outflows/inflows related to OPEB (1,169,588) Long-term debt (973,119)
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. 41,804,959
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:
Long-term debt (197,051)
Net pension liability and deferred outflows/inflows related to pensions (65,871,979) Total OPEB liability and deferred outflows/inflows related to OPEB (21,310,771) Interest payable (accrued liabilities) (312)
Contracts payable (10,191,421)
Allowance for conditional grants (887,824)
NET POSITION OF GOVERNMENTAL ACTIVITIES $603,597,824
See accompanying notes to basic financial statements
25 CITY OF MANTECA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023
Low and Moderate Homeless Special Public Facilities Other Total Income Housing Navigation Apportionment Implementation Governmental Governmental General Assets Center Streets Plan Funds Funds
REVENUES
Property taxes $25,660,666 $25,660,666
Sales taxes 19,091,153 $10,233,014 29,324,167
Other taxes 11,323,915 11,323,915
Licenses and permits 1,049,436 11,089,650 12,139,086
Fines and forfeitures 442,332 442,332
Use of money and property 1,018,498 $122,764 ($179,785) $56,837 $626,211 2,735,457 4,379,982 Revenue from other agencies 605,140 5,933,198 9,388,831 15,927,169 Charges for current services 9,094,572 8,904,138 15,375,067 33,373,777 Other revenue 1,216,013 15,197 95,965 217,449 1,544,624 Total Revenues 69,501,725 137,961 (83,820) 5,990,035 9,530,349 49,039,468 134,115,718
EXPENDITURES
Current:
General government 9,347,022 577,429 9,924,451
Community development 4,378,840 4,378,840
Public safety 34,539,334 11,351,881 45,891,215
Library 153,898 153,898
Public works 7,743,314 409,403 3,965,858 12,118,575
Parks and recreation 736,556 3,006,103 3,742,659
Streets and highways 1,417,712 2,535,745 3,953,457
Nondepartmental 9,351,502 9,351,502
Capital outlay 2,637,117 11,898,994 3,253,840 6,004,218 23,794,169 Debt service:
Principal 79,898 175,328 255,226
Interest and fiscal charges 1,201 84,685 1,894 87,780
Total Expenditures 64,589,842 13,316,706 3,747,928 31,997,296 113,651,772
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,911,883 137,961 (83,820) (7,326,671) 5,782,421 17,042,172 20,463,946
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4A) 53,386 10,927,858 10,981,244
Transfers (out) (Note 4A) (1,581,870) (9,829,174) (11,411,044) Issuance of SBITA 58,974 58,974
Proceeds from sale of property 67,500 67,500
Total Other Financing Sources (Uses) (1,460,984) 1,157,658 (303,326) NET CHANGE IN FUND BALANCES 3,450,899 137,961 (83,820) (7,326,671) 5,782,421 18,199,830 20,160,620 BEGINNING FUND BALANCES 37,057,231 582,161 726,934 40,860,666 118,497,217 197,724,209 ENDING FUND BALANCES (DEFICIT) $40,508,130 $720,122 ($83,820) ($6,599,737) $46,643,087 $136,697,047 $217,884,829 See accompanying notes to basic financial statements
26 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, 2023
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 $20,160,620 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 23,205,073 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $536,214 which has already been allocated to serviced funds) (16,531,722) 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. 17,857,131
Assets transferred to enterprise funds are deducted from fund balance (7,335,788)
LONG-TERM DEBT ISSUANCE 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.
Issuance of debt (subscription liabilities) is deducted from fund balance (58,974) Repayment of debt principal is added back to fund balance 255,226
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 3,952,533
Contracts and accounts payable (2,540,085)
Interest payable (1,605)
Allowance for conditional grants (23,494)
Net pension liability and deferred outflows/inflows related to pensions 11,626,028 Total OPEB liability and deferred outflows/inflows related to OPEB 885,747
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 59,633 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $51,510,323 See accompanying notes to basic financial statements
27 CITY OF MANTECA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Property taxes $24,368,223 $24,218,223 $25,660,666 $1,442,443 Sales taxes 18,880,000 18,880,000 19,091,153 211,153
Other taxes 10,823,000 10,323,000 11,323,915 1,000,915
Licenses and permits 896,000 896,000 1,049,436 153,436
Fines and forfeitures 516,000 516,000 442,332 (73,668)
Use of money and property 725,000 725,000 1,018,498 293,498 Revenue from other agencies 409,000 474,000 605,140 131,140 Charges for current services 9,361,625 8,501,625 9,094,572 592,947 Other revenue 422,000 467,000 1,216,013 749,013
Total Revenues 66,400,848 65,000,848 69,501,725 4,500,877 EXPENDITURES:
Current:
General government:
Legislative 1,532,943 1,773,789 1,207,947 565,842
City Attorney 1,684,295 1,670,409 1,162,723 507,686
Administration 5,447,257 5,121,607 3,785,679 1,335,928
Human resources 1,125,422 1,039,631 863,830 175,801
Financial services 2,856,495 2,543,492 2,326,843 216,649 Total general government 12,646,412 12,148,928 9,347,022 2,801,906 Public safety:
Police 21,176,519 21,530,552 21,885,841 (355,289)
Fire 11,992,677 11,806,824 12,147,950 (341,126)
Animal control 501,776 527,968 505,543 22,425
Total public safety 33,670,972 33,865,344 34,539,334 (673,990) Library 145,300 145,300 153,898 (8,598)
Public works:
Engineering 891,445 911,119 745,956 165,163
Street maintenance 87,900 81,300 72,367 8,933
Storm drain maintenance and operation 895,964 889,060 794,071 94,989 Vehicle maintenance 954,985 691,633 727,768 (36,135)
Building maintenance 5,840,222 6,225,570 5,403,152 822,418 Total public works 8,670,516 8,798,682 7,743,314 1,055,368 (Continued)
28 CITY OF MANTECA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
Parks and recreation:
Senior center 790,996 803,510 736,556 66,954
Total parks and recreation 790,996 803,510 736,556 66,954 Nondepartmental charges 8,283,000 8,308,706 9,351,502 (1,042,796) Capital outlay 935,000 1,725,459 2,637,117 (911,658)
Debt service:
Principal 79,898 (79,898)
Interest and fiscal charges 1,201 (1,201)
Total debt service 81,099 (81,099)
Total Expenditures 65,142,196 65,795,929 64,589,842 1,206,087
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,258,652 (795,081) 4,911,883 5,706,964
OTHER FINANCING SOURCES (USES)
Transfers in 53,386 53,386
Transfers (out) (1,497,500) (1,497,500) (1,581,870) (84,370) Proceeds from sale of property 67,500 67,500
Total Other Financing Sources (Uses) (1,497,500) (1,497,500) (1,460,984) 36,516 NET CHANGE IN FUND BALANCE ($238,848) ($2,292,581) 3,450,899 $5,743,480 BEGINNING FUND BALANCE 37,057,231
ENDING FUND BALANCE $40,508,130
See accompanying notes to basic financial statements
29 CITY OF MANTECA
LOW AND MODERATE INCOME HOUSING ASSETS FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Use of money and property $122,764 $122,764
Other revenue $25,000 $25,000 15,197 (9,803)
Total Revenues 25,000 25,000 137,961 112,961
NET CHANGE IN FUND BALANCE $25,000 $25,000 137,961 $112,961 BEGINNING FUND BALANCE 582,161
ENDING FUND BALANCE $720,122
See accompanying notes to basic financial statements
30 CITY OF MANTECA
HOMELESS NAVIGATION CENTER FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Use of money and property ($179,785) ($179,785)
Revenue from other agencies $16,000,000 (16,000,000)
Other revenue 95,965 95,965
Total Revenues 16,000,000 (83,820) (16,083,820)
NET CHANGE IN FUND BALANCE $16,000,000 (83,820) ($16,083,820)
BEGINNING FUND BALANCE
ENDING FUND BALANCE (DEFICIT) ($83,820)
See accompanying notes to basic financial statements
31 This Page Left Intentionally Blank
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 2023, 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.
TRANSIT FUND
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. 33 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Transit Total Funds
ASSETS
Current assets
Cash and investments (Note 3) $54,826,649 $66,120,190 $5,055,279 $509,671 $126,511,789 $26,166,124 Accounts receivables (net of allowance for
estimated uncollectible accounts) 3,987,852 4,699,891 1,903,950 23,117 $6,178,244 16,793,054 8,089 Interest receivable 22
Employee notes receivable (Note 6) 41,054
Total current assets 58,814,501 70,820,081 6,959,229 532,790 6,178,244 143,304,845 26,215,267 Non-current assets
Restricted cash and investments (Note 3) 5,210,101 3,385,089 8,595,190 Advances to other funds (Note 4C) 453,082 346,567 799,649 Capital assets not being depreciated (Note 7) 610,880 28,993,347 831,857 1,051,059 31,487,143 63,739 Capital assets (net of accumulated
depreciation) (Note 7) 85,703,016 149,235,188 5,546,359 832,145 6,777,809 248,094,517 1,465,829 Total non-current assets 91,977,079 181,960,191 6,378,216 1,883,204 6,777,809 288,976,499 1,529,568 Total Assets 150,791,580 252,780,272 13,337,445 2,415,994 12,956,053 432,281,344 27,744,835
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 2,594,250 3,279,076 2,982,458 372,782 188,258 9,416,824 1,194,230 Deferred outflows related to OPEB (Note 11) 622,971 729,067 706,934 212,222 304,882 2,576,076 71,409 Total deferred outflows of resources 3,217,221 4,008,143 3,689,392 585,004 493,140 11,992,900 1,265,639
LIABILITIES
Current liabilities
Accounts payable 1,157,821 1,861,444 540,124 54,458 283,607 3,897,454 566,301 Accrued liabilities 4,932,360
Due to other funds (Note 4B) 2,288,995 2,288,995
Refundable deposits 1,686,761 108,261 28,559 10,990 1,834,571 808 Unearned revenue 2,555,394 2,555,394 5,048,239
Interest payable 579,006 119,879 6 698,891 10,870
Compensated absences (Note 1G) 4,503,471
Estimated claims liability (Note 13) 1,566,296
Revenue bonds (Note 8) 1,630,000 1,895,000 3,525,000
Lease liability (Note 14) 1,564 8,888 1,564 12,016 1,564 Subscription liability (Note 15) 229,149
Total current liabilities 5,055,152 3,993,472 570,253 54,458 5,138,986 14,812,321 16,859,058 Long-term liabilities
Contracts payable 3,458,207 14,135,594 17,593,801
Advances from other funds (Note 4C) 3,287,687 7,734,372 11,022,059 Compensated absences (Note 1G) 3,002,315
Estimated claims liability (Note 13) 49,346
Revenue bonds (Note 8) 25,299,255 28,254,830 53,554,085 Net pension liability (Note 10) 9,286,000 11,720,225 10,526,348 1,230,291 579,026 33,341,890 3,773,556 Total OPEB liability (Note 11) 3,677,092 4,478,227 4,494,553 726,170 1,487,766 14,863,808 1,113,458 Lease liability (Note 14) 3,154 4,377 3,154 10,685 3,154 Subscription liability (Note 15) 739,252
Total long-term liabilities 45,011,395 66,327,625 15,024,055 1,956,461 2,066,792 130,386,328 8,681,081 Total Liabilities 50,066,547 70,321,097 15,594,308 2,010,919 7,205,778 145,198,649 25,540,139
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB (Note 11) 650,082 640,293 959,005 244,844 293,045 2,787,269 127,539 Total deferred inflows of resources 650,082 640,293 959,005 244,844 293,045 2,787,269 127,539 NET POSITION (Note 9):
Net investment in capital assets 59,379,923 148,065,440 6,373,498 1,883,204 6,777,809 222,479,874 556,449 Unrestricted 43,912,249 37,761,585 (5,899,974) (1,137,969) (827,439) 73,808,452 2,786,347 Total Net Position $103,292,172 $185,827,025 $473,524 $745,235 $5,950,370 $296,288,326 $3,342,796 See accompanying notes to basic financial statements
34 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Transit Total Funds
OPERATING REVENUES
Charges for services $18,786,751 $25,917,480 $16,288,404 $1,525,393 $105,822 $62,623,850 $6,013,000 Insurance premium contribution from other funds 5,024,137 Miscellaneous 41,633 197,560 86,518 40,463 366,174 536,746 Total Operating Revenues 18,828,384 26,115,040 16,374,922 1,565,856 105,822 62,990,024 11,573,883
OPERATING EXPENSES
Personnel services 5,058,505 6,206,738 6,048,245 1,087,593 407,199 18,808,280 3,465,589 Contractual services 785,489 1,856,551 5,273,205 1,763 1,423,502 9,340,510 74,265 Supplies 5,887,028 1,880,921 909,087 160,776 143,883 8,981,695 463,086 Utilities 933,607 2,563,353 15,789 154,902 18,332 3,685,983 280,320 Repairs and maintenance 288,908 1,092,920 116,121 100,101 79,956 1,678,006 970,761 Vehicle maintenance and operations 27,013 47,331 444,629 518,973 Interdepartmental 1,902,000 1,950,000 1,986,000 14,000 512,000 6,364,000 433,000 Insurance 281,500 519,700 318,100 43,000 1,162,300 5,164,828 Claims 297,965
Depreciation (Note 7) 4,186,823 4,588,985 1,588,022 72,556 749,976 11,186,362 536,214 Miscellaneous 104,715 200,798 29,012 1,482 42,407 378,414 67,744 Total Operating Expenses 19,455,588 20,907,297 16,728,210 1,636,173 3,377,255 62,104,523 11,753,772 Operating Income (Loss) (627,204) 5,207,743 (353,288) (70,317) (3,271,433) 885,501 (179,889)
NONOPERATING REVENUES (EXPENSES)
Interest income 718,366 964,431 95,010 12,879 100,268 1,890,954 151,844 Gain on sale of capital assets 115,469
Interest (expense) and fiscal charges (993,961) (1,501,557) (35) (2,495,553) (27,791) Intergovernmental grants 2,904 3,534,920 3,537,824
Settlement revenue 90 90
Net Nonoperating Revenues (Expenses) (275,505) (537,126) 97,879 12,879 3,635,188 2,933,315 239,522 Income (Loss) Before Contributions and Transfers (902,709) 4,670,617 (255,409) (57,438) 363,755 3,818,816 59,633 Capital grants 300,400 31,426 331,826
Contributions 2,600,735 1,293,996 3,894,731
Transfers in (Note 4A) 279,800 150,000 5,555,189 5,984,989 Net Contributions and Transfers 2,600,735 1,874,196 150,000 5,586,615 10,211,546 Change in net position 1,698,026 6,544,813 (255,409) 92,562 5,950,370 14,030,362 59,633 BEGINNING NET POSITION (DEFICIT) 101,594,146 179,282,212 728,933 652,673 282,257,964 3,283,163 ENDING NET POSITION $103,292,172 $185,827,025 $473,524 $745,235 $5,950,370 $296,288,326 $3,342,796 See accompanying notes to basic financial statements
35 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Transit Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $18,702,164 $25,717,280 $16,284,819 $1,563,386 $114,562 $62,382,211 $92,048,519 Payments to suppliers (7,892,450) (7,624,433) (7,342,924) (431,285) (1,444,393) (24,735,485) (7,348,631) Payments to or on behalf of employees (4,838,741) (6,004,765) (5,737,973) (1,111,983) (321,101) (18,014,563) (81,843,280) Internal activity - payments to other funds (1,902,000) (1,950,000) (1,986,000) (14,000) (512,000) (6,364,000) Employee notes receivable issued (42,329)
Receipts from employee notes receivable 30,408
Claims paid (191,425)
Cash Flows from Operating Activities 4,068,973 10,138,082 1,217,922 6,118 (2,162,932) 13,268,163 2,653,262
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental grants 2,904 929,600 932,504
Interfund receipts 25,085 107,657 1,191,539 1,324,281
Settlement receipts 2,500,090 2,500,090
Transfers in from other funds 279,800 150,000 102,096 531,896 Cash Flows from Noncapital Financing Activities 2,525,175 387,457 2,904 150,000 2,223,235 5,288,771
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets, net (410,636) (3,218,248) (1,711,526) (89,103) (191,997) (5,621,510) (170,078) Proceeds from sale of capital assets 115,469
Capital grants 300,400 31,426 331,826
Long-term debt payment - principal (1,556,554) (1,763,857) (1,554) (3,321,965) (236,818) Long-term debt payment - interest and fiscal charges (1,226,150) (1,592,958) (33) (2,819,141) (16,921) Cash Flows from Capital and Related Financing Activities (3,193,340) (6,274,663) (1,713,113) (89,103) (160,571) (11,430,790) (308,348)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest 718,366 964,431 95,010 12,879 100,268 1,890,954 151,844 Cash Flows from Investing Activities 718,366 964,431 95,010 12,879 100,268 1,890,954 151,844 Net Cash Flows 4,119,174 5,215,307 (397,277) 79,894 9,017,098 2,496,758 Cash and investments at beginning of period 55,917,576 64,289,972 5,452,556 429,777 126,089,881 23,669,366 Cash and investments at end of period $60,036,750 $69,505,279 $5,055,279 $509,671 $135,106,979 $26,166,124 (Continued)
36 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Transit Totals Funds
Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (loss) ($627,204) $5,207,743 ($353,288) ($70,317) ($3,271,433) $885,501 ($179,889) Adjustments to reconcile operating income (loss) to cash flows from operating activities:
Depreciation 4,186,823 4,588,985 1,588,022 72,556 749,976 11,186,362 536,214 Change in assets and liabilities:
Accounts receivables (net of allowance for
estimated uncollectible accounts) (149,539) (89,204) (87,554) (2,510) (328,807) (2,878) Related party notes receivable (11,921)
Leases receivable and related deferred inflows 40 40
Accounts payable and other accrued expenses 242,793 (631,175) (239,530) 30,739 272,427 (324,746) 107,061 Contracts payable 196,336 859,760 1,056,096
Accrued liabilities 876,134
Unearned revenue 266,811
Compensated absences 654,865
Claims liability 106,540
Net pension liability, deferred outflows and inflows 163,567 152,315 214,129 (47,397) 53,488 536,102 285,833 Total OPEB liability, deferred outflows and inflows 56,197 49,658 96,143 23,007 32,610 257,615 14,492 Cash Flows from Operating Activities $4,068,973 $10,138,082 $1,217,922 $6,118 ($2,162,932) $13,268,163 $2,653,262 NONCASH TRANSACTIONS:
Contributions of capital assets, net $2,600,735 $1,293,996 $3,894,731 Transfer of capital assets from governmental activities $7,335,788 $7,335,788 Amortization of bond premium $193,315 $84,094 $277,409
Transfer noncash assets/liabilities
to/from governmental activities ($1,882,695) ($1,882,695) See accompanying notes to basic financial statements
37 This Page Left Intentionally Blank
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.
39 CITY OF MANTECA
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
Successor Agency
to the
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and investments (Note 3) $8,565,355
Restricted cash and investments (Note 3) 2,175,613
Capital assets, not being depreciated (Note 17C) 726,026 Capital assets, being depreciated (net) (Note 17C) 1,614,709 Total Assets 13,081,703
LIABILITIES
Accounts payable 3,614
Due to the County Auditor-Controller (Note 17E) 1,760,625 Interest payable 649,185
Long-term obligations (Note 17D):
Due in one year 4,315,000
Due in more than one year 87,771,619
Total Liabilities 94,500,043
NET POSITION (DEFICIT)
Held in trust for other purposes ($81,418,340)
See accompanying notes to basic financial statements
40 CITY OF MANTECA
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Successor Agency
to the
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS
Property taxes $1,427,520
Net investment income 140,987
Total additions 1,568,507
DEDUCTIONS
Community development 258,052
Loss on sale of capital assets 847,346
Pass through to San Joaquin County (Note 17E) 1,760,625 Depreciation (Note 17C) 125,618
Interest and fiscal charges 2,384,804
Total deductions 5,376,445
CHANGE IN NET POSITION (3,807,938)
NET POSITION HELD IN TRUST FOR
OTHER PURPOSES
Beginning of year (77,610,402)
End of year ($81,418,340)
See accompanying notes to basic financial statements
41 This Page Left Intentionally Blank
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 2023. 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. 43 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 (proprietary) 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. 44 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
HOMELESS NAVIGATION CENTER FUND - Established to account for the financing and construction activities associated with the regional low barrier emergency homeless shelter. Financing is provided by local, State and Federal Grants.
SPECIAL APPORTIONMENT STREETS FUND - 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.
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. The water developer impact fees collected and expended in connection with the Public Facilities Implementation Plan are also accounted for in this fund.
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. The sewer developer impact fees collected and expended in connection with the Public Facilities Implementation Plan are also accounted for in this fund.
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.
TRANSIT FUND - 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. 45 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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, including lease liabilities and subscription liabilities, as well as claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and right-to-use subscription assets, are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under financing through 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 intergovernmental revenues, 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.
46 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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.
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 $6,850,921
Additions 4,854,589
Payments (4,199,724)
Ending Balance $7,505,786
Current Portion $4,503,471
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.
47 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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 three sources: accounts receivable, notes receivable and leases.
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. Prepaids and Deposits
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
Prepaids and deposits in governmental funds are equally offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.
48 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. 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.
L. New and Recategorized Funds
The Homeless Navigation Center Special Revenue Fund was established to account for the financing and construction activities associated with the regional low barrier emergency homeless shelter. Financing is provided by local, State and Federal Grants.
The Federal Transit Management Fund was recategorized from a Special Revenue Fund to the Transit Enterprise Fund as of July 1, 2022.
The Engineering Services Special Revenue Fund was established to account for developer fees used to oversee planning, design, and construction for new capital projects. The activity was previously recorded in the Development Services Special Revenue Fund.
The Fire Facilities Fee Capital Improvement Fund was established to account for financing and construction activities related to Fire Facilities. Financing is provided by fees imposed on developments. The activity was previously recorded in the Government Building Facilities Capital Improvement Fund.
The Neighborhood Parks In Lieu Fee Capital Improvement Fund was established to account for fees paid by developers in-lieu of building and dedicating a park when a development is determined to be too small to develop their own neighborhood park. The activity was previously recorded in the Parks Capital Improvement Fund.
The Gas Tax SB1 Capital Improvement Fund was established to account for the Road Maintenance and Rehabilitation Account that addresses deferred maintenance of the local street and road systems and is funded by the State of California. The activity was previously recorded in the State Gasoline Tax Capital Improvement Fund.
49 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 Fund level for all funds.
5. Budgets are adopted for all funds other than some Fiduciary Funds.
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.
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
Special Revenue Funds:
Landscape and Lighting Maintenance District $129,705
Public Safety Sales Tax 46,536
Capital Improvement Fund:
Neighborhood Parks In Lieu Fee 23,054
50 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
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, 2023 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 $371,579,744 Restricted cash and investments 18,116,413
Total City cash and investments of primary government 389,696,157 Cash and investments in Fiduciary Funds 8,565,355
Restricted cash and investments in Fiduciary Funds 2,175,613 Total cash and investments $400,437,125
Cash and investments as of June 30, 2023 consist of the following:
Cash on hand $2,250
Deposits with financial institutions 92,805,362
Investments 307,629,513
Total cash and investments $400,437,125
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. 51 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
52 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 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 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.
53 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $29,137,179 $27,242,971 $56,380,150 Mortgage Pass Through Federal Agency Securities $41,646 6,272,744 4,678,417 $2,393,291 13,386,098 Medium Term Corporate Notes
Callable 6,494,849 10,042,406 4,544,172 21,081,427
Non-Callable 2,323,120 9,019,297 7,814,409 19,156,826
Negotiable Certificates of Deposit 1,050,243 2,858,721 3,908,964 California Local Agency Investment Fund 65,978,139 65,978,139 Money Market Mutual Funds (U.S. Securities) 14,108 14,108 Supranationals 1,370,828 1,370,828
Asset-Backed Securities 116,247 693,155 3,935,708 22,733,260 27,478,370 Municipal Bonds 1,434,219 1,028,491 364,688 2,827,398
California Asset Management Program 49,313,116 49,313,116 Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 46,734,089 46,734,089 Total Investments $172,449,533 $58,614,343 $51,439,086 $25,126,551 $307,629,513 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, 2023, these investments have an average maturity of 260 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, 2023, the fair value was approximate to the City’s cost. At June 30, 2023 these investments had an average maturity of 26 days. 54 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023 and have a weighted average maturity of 13 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, 2023 for each investment type as provided by Standard and Poor’s investment rating system, except as noted.
Moody's Moody's Moody's
Investment Type AAAm/AAA AA+/AA/AA- A+/A/A- Aaa Aa1 A1/A2/A3 Total Held by City:
$13,386,098 $13,386,098
Medium Term Corporate Notes
Callable 4,040,490 $14,715,927 $2,325,010 21,081,427
Non-Callable 7,795,462 10,750,169 611,195 19,156,826
Money Market Mutual Funds (U.S. Securities) $14,108 14,108 Supranationals 1,370,828 1,370,828
Asset-Backed Securities 21,788,076 $5,690,294 27,478,370 Municipal Bonds 97,932 1,043,155 $743,496 1,884,583
California Asset Management Program 49,313,116 49,313,116 Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 46,734,089 46,734,089 Totals $119,318,149 $26,265,205 $25,466,096 $5,690,294 $743,496 $2,936,205 180,419,445 Not rated:
Negotiable Certificates of Deposit 3,908,964
California Local Agency Investment Fund 65,978,139
Municipal Bonds 942,815 *
Exempt from credit rating disclosure:
U.S. Treasury Notes 56,380,150
Total Investments $307,629,513
* Investment is rated AA by Fitch
Mortgage Pass Through Federal Agency Securities
55 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023:
Level 1 Level 2 Total
Investments by Fair Value Level:
U.S. Treasury Notes $56,380,150 $56,380,150
Mortgage Pass Through Federal Agency Securities $13,386,098 13,386,098 Medium Term Corporate Notes 40,238,253 40,238,253
Negotiable Certificates of Deposit 3,908,964 3,908,964
Supranationals 1,370,828 1,370,828
Asset-Backed Securities 27,478,370 27,478,370
Municipal Bonds 2,827,398 2,827,398
Totals $56,380,150 $89,209,911 145,590,061
Investments Measured at Net Asset Value Per Share:
Held by City:
California Asset Management Program 49,313,116
Investments Measured at Amortized Cost:
Money Market Mutual Funds (U.S. Securities) 14,108
Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 46,734,089
Investments Exempt from Fair Value Hierarchy:
California Local Agency Investment Fund 65,978,139
Total Investments $307,629,513
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.
56 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023 the transfers were as follows:
Amount
Fund Receiving Transfers Fund Making Transfers Transferred Purpose General Fund Non-Major Governmental Funds $53,386 A
Non-Major Governmental Funds General Fund 1,152,070 B
Non-Major Governmental Funds Non-Major Governmental Funds 9,775,788 C Sewer Enterprise Fund General Fund 279,800 D
Golf Enterprise Fund General Fund 150,000 B
$11,411,044
A To close fund
B To fund operations
C To reclassify fund activity
D Transfer 50% of the business license tax collections to lower the PFIP Sewer Fee, in accordance with the 2013 Public Facilities Implementation Plan Update In addition to the transfers above, governmental activities transferred accounts receivable of $3,637,850, net capital assets of $7,335,788, unearned revenue of $2,620,320, pension-related balances of ($337,280), OPEB-related balances of ($1,443,319), and other asset and liability balances netting to ($1,017,530), for a net transfer of $5,555,189 associated with the transition of the Federal Transit Management Special Revenue Fund to the Transit Enterprise Fund on July 1, 2022.
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, 2023, interfund balances were as follows:
Due From Funds Due To Funds Amount
General Fund Special Apportionment Streets Special Revenue Fund $6,256,856 Transit Enterprise Fund 2,288,995
Non-Major Governmental Funds 657,626
Total $9,203,477
57 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
C. Long-Term Interfund Advances
At June 30, 2023, 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 3,200,726 Sewer Enterprise Fund 7,461,570
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
Total Advances $12,543,725
Public Facilities Implementation Plan
Advances above in the amount of $12,543,725 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%.
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.
58 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 17, 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, 2023 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, 2023, these Notes totaled:
HOPE Shelter $1,206,037
Habitat for Humanity 10,000
Down Payment Assistance Program 1,286,700
Residential Rehabilitation 73,458
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 22,927,939
Less: Allowance for conditional grants (887,824)
Net long-term notes receivable $22,040,115
In addition, the General Fund has recorded a loan receivable in the amount of $540,000 as discussed in Note 16D.
Unavailable revenue at June 30, 2023 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, 2023, HOPE had drawn down $1,206,037 of the available loan and no further drawdowns are expected.
59 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, loans related to this Program in the amount of $1,286,700 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, 2023, loans receivable under this program totaled $73,458.
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, 2023 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.
60 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, 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, 2023, $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, 2023, 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, 2023 is $12,750,000. 61 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023 is $887,824.
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 the Information Technology Department, and ultimately 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 or less. Employees must repay the outstanding balance of their loans upon ending their employment with the City. As of June 30, 2023, 30 employees had notes totaling $41,054 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 except for intangible right to‐use lease assets, the measurement of which is discussed in Note 14 below, and intangible right to use subscription assets, the measurement of which is described in Note 15 below. 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
Right-to-Use Buildings 3 years
Machinery and Equipment 5-15 years
Right-to-Use Equipment 3-5 years
Right-to-Use Software 2-7 years
Storm Drain 50 years
Streets 30 years
Parks 15-30 years
Subscription Assets 2-6 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. 62 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – CAPITAL ASSETS (Continued)
A. Capital Asset Additions and Retirements
Capital assets activities for the year ended June 30, 2023 were as follows:
Governmental activities Balance at
June 30, 2022 Balance at
(as Restated) Additions Retirements Transfers June 30, 2023 Capital assets not being depreciated:
Land and improvements $61,306,179 $1,760,625 $63,066,804 Subscription assets in progress 109,305 109,305
Construction in progress 50,121,301 18,054,483 ($35,959,215) 32,216,569 Total capital assets not being depreciated 111,427,480 19,924,413 (35,959,215) 95,392,678 Capital assets being depreciated:
Buildings and improvements 43,510,407 661,028 (7,412,358) 36,759,077 Intangible right-to-use building 634,944 634,944
Machinery and equipment 29,904,686 1,708,347 ($370,501) (2,526,517) 28,716,015 Intangible right-to-use equipment 28,661 28,661
Storm drain 64,026,542 4,897,180 68,923,722
Streets 287,206,322 10,424,547 34,234,476 331,865,345
Parks 76,440,690 3,557,793 79,998,483
Subscription assets 1,340,920 58,974 1,399,894
Total capital assets being depreciated 503,093,172 21,307,869 (370,501) 24,295,601 548,326,141 Less accumulated depreciation for:
Buildings and improvements (16,621,100) (996,774) 2,725,561 (14,892,313) Intangible right-to-use building (162,114) (162,114) (324,228) Machinery and equipment (21,307,930) (1,835,883) 370,501 1,602,265 (21,171,047) Intangible right-to-use equipment (4,019) (8,507) (12,526) Storm drain (17,592,367) (1,703,747) (19,296,114)
Streets (102,049,472) (9,524,405) (111,573,877)
Parks (32,818,010) (2,556,346) (35,374,356)
Subscription assets (280,160) (280,160)
Total accumulated depreciation (190,555,012) (17,067,936) 370,501 4,327,826 (202,924,621) Net capital assets being depreciated 312,538,160 4,239,933 28,623,427 345,401,520 Governmental activity capital assets, net $423,965,640 $24,164,346 ($7,335,788) $440,794,198 63 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – CAPITAL ASSETS (Continued)
Business-type activities Balance at Balance at
June 30, 2022 Additions Retirements Transfers June 30, 2023 Capital assets not being depreciated:
Land and improvements $4,394,232 $4,394,232
Construction in progress 26,880,720 $212,191 27,092,911 Total capital assets not being depreciated 31,274,952 212,191 31,487,143 Capital assets being depreciated:
Sewer lines and improvements 74,287,007 2,297,507 76,584,514 Water wells, pipelines and water rights 149,849,429 2,883,622 152,733,051 Buildings and improvements 9,410,820 30,447 ($14,167) $9,137,097 18,564,197 Intangible right-to-use building 21,922 21,922
Machinery and equipment 26,673,788 3,578,438 (1,518,122) 2,526,517 31,260,621 Intangible right-to-use equipment 23,487 23,487
Infrastructure 165,424 165,424
Sewer plant expansion 134,387,930 514,036 (5,987,218) 128,914,748 394,819,807 9,304,050 (7,519,507) 11,663,614 408,267,964 Less accumulated depreciation for:
Sewer lines and improvements (25,282,118) (1,388,374) (26,670,492) Water wells, pipelines and water rights (63,817,980) (3,880,053) (67,698,033) Buildings and improvements (5,897,936) (551,975) 14,167 (2,725,561) (9,161,305) Intangible right-to-use building (6,089) (7,307) (13,396) Machinery and equipment (19,127,519) (2,770,914) 1,518,122 (1,602,265) (21,982,576) Intangible right-to-use equipment (3,980) (4,697) (8,677) Infrastructure (74,363) (6,568) (80,931)
Sewer plant expansion (37,968,781) (2,576,474) 5,987,218 (34,558,037) (152,178,766) (11,186,362) 7,519,507 (4,327,826) (160,173,447) Net capital assets being depreciated 242,641,041 (1,882,312) 7,335,788 248,094,517 Total Business-type activity capital assets, net $273,915,993 ($1,670,121) $7,335,788 $279,581,660 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.
64 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $121,226
Community development 285,746
Public safety 2,116,241
Public works 1,795,007
Parks and recreation 2,798,874
Streets and highways 9,414,628
Internal Service Funds 536,214
Total Governmental Activities $17,067,936
Business-Type Activities
Water $4,186,823
Sewer 4,588,985
Solid waste 1,588,022
Golf 72,556
Transit 749,976
Total Business-Type Activities $11,186,362
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, 2022 Retirements June 30, 2023 Portion
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 11,265,000 $1,755,000 9,510,000 $1,895,000 Net premium 1,723,924 84,094 1,639,830
Water Revenue Bonds
Series 2012 Refunding Bonds, 2.00 - 5.00% 35,840,000 24,715,000 1,555,000 23,160,000 1,630,000 Net premium 3,962,570 193,315 3,769,255
Total Business - Type Activity Debt $77,530,000 $60,666,494 $3,587,409 $57,079,085 $3,525,000
65 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – LONG TERM DEBT (Continued)
B. Sewer Revenue Bonds
On May 27, 2009 the Manteca Financing Authority issued the 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 2.00-5.00% 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 $40,891,957. The Sewer Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $3,237,266 and $10,761,159 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 its ratings of the 2009 and 2012 Bonds, due to the City’s delay in issuing the audited financial statements. In addition, on April 20, 2023, Fitch Ratings withdrew its AA- rating for the 2009 Bonds for the same reason.
66 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – LONG TERM DEBT (Continued)
C. 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 $30,092,000. The Water Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $2,751,875 and $4,277,985, 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 8B 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.
D. 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
2024 $3,525,000 $2,508,266
2025 2,910,000 2,347,740
2026 3,110,000 2,205,546
2027 3,300,000 2,061,071
2028 3,505,000 1,905,945
2029-2033 20,540,000 6,703,495
2034-2037 14,780,000 1,581,894
Total 51,670,000 $19,313,957
Plus: Bond Premiums 5,409,085
Gross Long Term Debt $57,079,085
E. 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. 67 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
68 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, are below:
Special Revenue Capital Improvement
Low and Public
Moderate Homeless Special Facilities Other
General Income Navigation Apportionment Implementation Governmental Fund Balance Classifications Fund Housing Assets Center Streets Plan Funds Total Nonspendable:
Items not in spendable form:
Advance to other funds $1,081,780 $1,081,780
Prepaids and deposits 80,000 80,000
Total Nonspendable
Fund Balances 1,161,780 1,161,780
Restricted for:
Health Reimbursement Arrangement 448,821 448,821
Low and Moderate Income Housing Projects $720,122 720,122 Transportation Projects $37,069,721 37,069,721
Development Services Projects 23,529,133 23,529,133
Engineering Services 286,440 286,440
Public Safety Projects 6,402,253 6,402,253
Parks Projects 18,891,462 18,891,462
Major Equipment Purchases 1,271,149 1,271,149
Landscaping and Lighting Projects 1,476,977 1,476,977
City and Public Facilities Projects $46,643,087 47,682,041 94,325,128 Flood Protection Projects 6,594 6,594
Recreation 338,826 338,826
Total Restricted Fund Balances 448,821 720,122 46,643,087 136,954,596 184,766,626 Committed to:
Innovation and Technology Projects 292,905 292,905
Assigned to:
Fiscal Stability 16,823,705 16,823,705
Pension 3,364,741 3,364,741
Economic Development 2,500,000 2,500,000
Public Facilities Oversizing 2,723,119 2,723,119
Capital Facilities 1,500,000 1,500,000
Technology 1,500,000 1,500,000
Total Assigned Fund Balances 28,411,565 28,411,565
Unassigned:
General Fund 10,485,964 10,485,964
Fund balance deficits ($83,820) ($6,599,737) (550,454) (7,234,011) Total Unassigned Fund Balances 10,485,964 (83,820) (6,599,737) (550,454) 3,251,953 Total Fund Balances $40,508,130 $720,122 ($83,820) ($6,599,737) $46,643,087 $136,697,047 $217,884,829 69 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
70 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 generated 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. 71 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, which are reported within the assigned fund balance of the General Fund follows:
Minimum or Reserve
Maximum as of
Reserve June 30, 2023
General Fund:
Assigned Fund Balance:
Fiscal Stability $16,823,705 $16,823,705
Pension Stabilization 3,364,741 3,364,741
Economic Development 2,500,000 2,500,000
Public Facilities Oversizing 2,723,119 2,723,119
Capital Facilities 1,500,000 1,500,000
Technology 1,500,000 1,500,000
Total Assigned Fund Balance $28,411,565
72 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 25% of operating expenditures in the Public Safety Sales Tax Fund (revised from 50% to 25% in March 2023 with Resolution 2023-27) 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.
73 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
D. Deficit Fund Balances and Accumulated Deficits
At June 30 2023, the Homeless Navigation Center Special Revenue Fund, Special Apportionment Streets Capital Improvement Fund, Community Development Block Grant Special Revenue Fund, Fire Grants Special Revenue Fund and the COVID Relief Special Revenue Fund had deficit fund balances of $83,320, $6,599,737, $139,445, $304,113, and $106,896, respectively, and Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund and the Payroll Tax Benefit Allocation Internal Service Fund had deficit net position of $81,418,340 and $554,604, respectively.
E. Restatement
The City implemented the provisions of Governmental Accounting Standards Board Statement No. 96, – Subscription-Based Information Technology Arrangements (SBITAs), during the year ended June 30, 2022. As a result, the City determined that beginning the balances of capital assets and subscription liabilities were $1,340,920 and $1,336,920, respectively, as of July 1, 2022 and restated and increased the balances in those amounts, and the net effect on beginning net position was an increase of $4,000. See the SBITAS disclosure in Note 15.
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, 2023, total pension expense for the Miscellaneous, Safety and PARS Retirement Enhancement plans amounted to $6,941,467.
74 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $22,411,703 $68,931,688
Safety - Police and Fire 30,299,709 72,207,303 $3,306,435 PARS Retirement Enhancement Plan 466,098 1,108,455
Total $53,177,510 $142,247,446 $3,306,435
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, 2023, 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 11.090% 11.090% 11.090% Required UAL Contribution $5,828,526
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contribution for the unfunded liability was $5,828,526 in fiscal year 2023, which was made under the lump sum payment option. 75 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2021 and as of the measurement date of June 30, 2022:
Miscellaneous
June 30, 2021 June 30, 2022
Inactive employees or beneficiaries currently receiving benefits 296 314 Inactive employees entitled to but not yet receiving benefits 266 292 Active employees 280 306
Total 842 912
As of June 30, 2023, the City had 312 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, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is 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, 2021 (Measurement Date) $198,787,645 $158,455,094 $40,332,551 Changes in the year:
Service cost 4,302,617 4,302,617
Interest on the total pension liability 14,048,114 14,048,114 Differences between actual and expected experience 346,337 346,337 Changes in assumptions 7,180,122 7,180,122
Changes in benefit terms
Net Plan to Plan Resource Movement
Contribution - employer 7,828,674 (7,828,674)
Contribution - employees 1,651,472 (1,651,472)
Net investment income (12,103,385) 12,103,385
Administrative expenses (98,708) 98,708
Benefit payments, including refunds of employee
contributions (9,739,112) (9,739,112)
Other Miscellaneous Income/ (Expense)
Net changes 16,138,078 (12,461,059) 28,599,137
Balance at June 30, 2022 (Measurement Date) $214,925,723 $145,994,035 $68,931,688 76 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 5.90%
Net Pension Liability $98,846,306
Current Discount Rate 6.90%
Net Pension Liability $68,931,688
1% Increase 7.90%
Net Pension Liability $44,427,235
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2023, the City recognized pension expense of $10,111,310. At June 30, 2023, 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 $8,561,953 Differences between actual and expected experience 1,219,156 Changes in assumptions 5,290,616
Net differences between projected and actual earnings
on plan investments 7,339,978
Total $22,411,703 $0
The Miscellaneous Plan reported $8,561,953 as deferred outflows of resources related to contributions subsequent to the measurement date, which will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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
2024 $3,934,665
2025 3,199,471
2026 2,112,317
2027 4,603,297
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 77 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, 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 25.640% 22.480% 13.660% Required UAL Contribution $3,179,709 $13,576 $11,916
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 23.680% 13.660%
Required UAL Contribution $2,149,642 $9,315
Police
78 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PENSION PLANS (Continued)
Beginning in fiscal year 2016, CalPERS collects employer contributions for the cost-sharing 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 (UAL) as noted in the table above. The dollar amounts are billed on a monthly basis or can be paid in a lump sum at a reduced amount. The City elected to make the lump sum contributions and the required contribution for the unfunded liability was $5,364,158 in fiscal year 2023, as shown in the table above.
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, 2023, the contributions to the Safety Plan were as follows:
Contributions - employer $8,516,327
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, 2023, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan in the amount of $72,207,303.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability for the Plans is measured as of June 30, 2022, 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, 2021, rolled forward to June 30, 2022 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, 2021 and 2022 was as follows:
Total
Proportion - June 30, 2021 1.27699%
Proportion - June 30, 2022 1.05081%
Change - Increase (Decrease) -0.22618%
79 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PENSION PLANS (Continued)
For the year ended June 30, 2023, the City recognized pension expense of ($3,303,724) for the Safety Plan. At June 30, 2023, 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 $8,516,327 Differences between actual and expected experience 2,988,398 ($784,114) Changes in assumptions 7,280,682
Net differences between projected and actual earnings on plan investments 11,402,542
Change in proportion and differences between actual
contributions and proportionate share of contributions (2,522,321) 111,760 Total $30,299,709 ($3,306,435)
The Safety Plan reported $8,516,327 as deferred outflows of resources related to contributions subsequent to the measurement date, which will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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
2024 $5,356,924
2025 4,003,637
2026 2,160,690
2027 6,955,696
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 5.90%
Net Pension Liability $102,061,060
Current Discount Rate 6.90%
Net Pension Liability $72,207,303
1% Increase 7.90%
Net Pension Liability $47,808,601
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 80 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PENSION PLANS (Continued)
D. Information Common to the Miscellaneous and Safety Plans Actuarial Assumptions – For the measurement period ended June 30, 2022, the total pension liabilities were determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions:
Miscellaneous and Safety (Fire and Police)
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service (1) Investment Rate of Return 6.90% (2)
Mortality Rate Table Derived using CalPERS Membership
Data for all Funds (3)
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% 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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CALPERS Website.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. 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 6.90%. 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.
81 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.
The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
The expected real rates of return by asset class are as follows:
Assumed
Asset Real Return
Asset Class (a) Allocation Years 11+ (a,b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 82 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PENSION PLANS (Continued)
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, 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 are 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 XXXX
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
83 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2022 actuarial valuation date, the following employees were covered by the benefit terms for the 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, 2023. 84 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 contributed $330 thousand to the Plan during the fiscal year ended June 30, 2023.
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, 2022. 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, 2022, the total pension liability was determined using an actuarial valuation as of June 30, 2022. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions:
PARS Plans
Valuation Date June 30, 2022
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal, Level % of pay
Amortization method Level dollar amount
Amortization period 6-year fixed period for 2022/23
Actuarial Assumptions:
Discount Rate 3.20% at June 30, 2021 and 3.20% at June 30, 2022 Inflation 2.50%
Investment Rate of Return 3.20% at June 30, 2021 and 3.20% at June 30, 2022 Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Scale Post - retirement mortality projected fully generational with Scale MP-2021 Changes of Assumptions – For the measurement period ended June 30, 2022, the demographic assumptions were updated to CalPERS 2000-2019 Experience Study and the mortality improvement scale was updated to Scale MP-2021.
Discount Rate - The discount rate used to measure the total pension liability for the Plan was 3.20%. 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% 4.56%
Fixed Income 22.0% 0.78%
Cash 68.0% -0.05%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 3.20%
(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.
85 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2022 Measurement Date follows:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2021 (Measurement Date) $2,989,766 $2,282,278 $707,488 Changes in the year:
Service cost
Interest on the total pension liability 93,001 93,001
Differences between actual and expected experience 53,376 53,376 Changes in assumptions 19,556 19,556
Changes in benefit terms
Contribution - employer
Contribution - employee
Net investment income (226,244) 226,244
Administrative expenses (8,790) 8,790
Benefit payments, including refunds of employee
contributions (167,023) (167,023)
Net changes (1,090) (402,057) 400,967
Balance at June 30, 2022 (Measurement Date) $2,988,676 $1,880,221 $1,108,455 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 2.20%
Net Pension Liability $1,478,101
Current Discount Rate 3.20%
Net Pension Liability $1,108,455
1% Increase 4.20%
Net Pension Liability $800,926
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued PARS financial report. 86 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – PENSION PLANS (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2023, the City recognized pension expense of $133,881 for the Plan. At June 30, 2023, 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 $330,000 Differences between actual and expected experience 136,098 Changes in assumptions
Net differences between projected and actual earnings on plan investments
Total $466,098 $0
The Plan reported $330,000 as deferred outflows of resources related to contributions subsequent to the measurement date, that will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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
2024 $17,516
2025 27,087
2026 32,236
2027 59,259
PARS
87 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, there were 220 participants receiving these health care benefits.
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, 2023:
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 $151 $151 $151 $151 $151 $151 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, 2023, the City’s contributions to the Plan were $1,985,138. 88 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2022:
Active employees 421
Inactive employees or beneficiaries currently
receiving benefit payments 215
Inactive employees entitled to but not yet
receiving benefit payments 75
Total 711
B. Total OPEB Liability
Actuarial Methods and Assumptions – The City’s total OPEB liability was measured as of June 30, 2022 and the total OPEB liability was determined by an actuarial valuation dated June 30, 2022, based on the following actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date June 30, 2022
Measurement Date June 30, 2022
Actuarial Assumptions:
Discount Rate 3.54% at June 30, 2022 and 2.16% at June 30, 2021 (1) Inflation 2.50%
Payroll Growth 2.75% (2)
PEMHCA Minimum Increases 3.50%
Contribution Policy No pre-funding
Cap Increases None beyond amounts specified
Mortality Rate CalPERS 2000 -2019 Experience Study (3)
Healthcare Trend Rates Non-Medicare - 8.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non-Kaiser) - 7.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076- Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% 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 2000-2019 Experience Study (3) Post-retirement mortality projected fully generational with Scale MP-2021 The underlying mortality assumptions were based on the CalPERS 2000-2019 Experience Study and all other actuarial assumptions used in the June 30, 2022, valuation were based on the results of an actuarial experience study for the period 2000 -2019.
89 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) Change in Assumptions – The discount rate increased from 2.16% at June 30, 2021, to 3.54% at June 30, 2022, based on the municipal bond rate as of the measurement date. The inflation rate was updated from
2.75% to 2.50%. The medical trend and PEMHCA minimum trend were updated. The demographic assumptions updated to CalPERS 2000-2019 Experience Study, and the mortality improvement scale was updated to Scale MP-2021.
C. Changes in Total OPEB Liability
The changes in the total OPEB liability follows:
Total OPEB
Liability
Balance at June 30, 2021 Measurement Date $44,144,056
Changes Recognized for the Measurement Period:
Service cost 1,820,051
Interest on the total OPEB liability 971,080
Changes of assumptions (7,876,327)
Actual vs. expected experience 811,844
Benefit payments * (2,013,440)
Net changes (6,286,792)
Balance at June 30, 2022 Measurement Date $37,857,264
* Includes $1,439,440 cash benefit payments and $574,000 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%
(2.54%) (3.54%) (4.54%)
$42,618,963 $37,857,264 $33,908,996
90 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 11 – POST-EMPLOYMENT HEALTH CARE BENEFITS (Continued) 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
$36,556,565 $37,857,264 $39,644,165
E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $2,814,817. At June 30, 2023, 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 $1,985,138 Differences between actual and expected experience 1,239,450 ($89,946) Changes of assumptions 4,533,250 (7,365,988)
Total $7,757,838 ($7,455,934)
$1,985,138 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, 2024.
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
2024 $18,408
2025 18,612
2026 81,269
2027 168,128
2028 (233,089)
Thereafter (1,736,562)
91 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 12 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plans created in accordance with Internal Revenue Code Sections 401 and 457. Under the Plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, and death or in an emergency as defined by the Plans.
The Plans are part of the public agency agent multiple-employer defined contribution plans that are administered by Mission Square Retirement (formerly ICMA RC) and, Newport Retirement Services (Newport). Benefit provisions under the Plans are established by City resolution. The City has no liability for any losses incurred by the Plans and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Mission Square and Newport to manage and invest the assets of the Plans. The administrator pools the assets of the Plan with those of other participants and does not make separate investments for the City. The assets in the Plans are the sole property of the participants or their beneficiaries. Since the assets held under the Plans 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. The Plans require investments to be stated at fair market value and it requires all gains and losses on Plan investments to accrue directly to participant accounts. A summary of eligibility and employer contribution requirements for the City’s Plans are shown below by bargaining unit:
92 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 12 – DEFERRED COMPENSATION PLAN (Continued)
Fire
The City will contribute $20.00 per month to the deferred compensation plan.
If employee chooses to decline health insurance coverage, the City will contribute $350 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2023. Effective July 1, 2023, the potential monthly contribution increases to $600.
Manteca Mid-Manager Association
Employees receive a non-PERSable stipend equal to 2% of their base salary. The 2% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation. Any unused stipend will be automatically cashed out on June 30. An employee hired after July 1, will receive a prorated stipend in the fiscal year in which they were hired.
If employee chooses to decline health insurance coverage, the City will contribute $450 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2023. Effective July 1, 2023, the potential monthly contribution increases to $600.
Manteca Police Employees' Association
The City will contribute 4% of base salary per month to the deferred compensation plan.
If an employee chooses to decline health insurance coverage, the City will contribute to the employee' s deferred compensation account or cash in lieu of deferred compensation of $425 each month through June 30, 2023.
Effective July 1, 2023, the potential monthly contribution increases to $600.
Manteca Police Officers' Association
The City will contribute 1% of base salary per month to the deferred compensation plan.
If a member chooses to decline health insurance coverage, the City will issue a non-PERS stipend of $530 in lieu of medical coverage, provided proof of coverage is obtained through June 30, 2023. Effective July 1, 2023, the potential monthly stipend increases to $600. If a member chooses the stipend in lieu of coverage, the stipend can be used toward deferred compensation or taken as a cash payment.
Manteca Public Safety Management Association
Employees will receive a non-PERSable stipend equal to 6% of their base salary. The 6% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation or on June 30th each year if not cashed out or placed into a deferred compensation account. An employee hired after July 1, will receive a prorated stipend in the fiscal year in which they were hired.
If an employee chooses to decline health insurance coverage, the City will contribute to the employee' s deferred compensation account or cash in lieu of deferred compensation of $450 each month through June 30, 2023.
Effective July 1, 2023, the potential monthly contribution increases to $600.
Operating Engineers Local Union Unit 3
The City will contribute 5% of base salary per month to the deferred compensation plan.
If employee chooses to decline health insurance coverage, the City will contribute $475 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2023. Effective July 1, 2023, the potential monthly contribution increases to $600.
Manteca Technical and Support Services Association
The City will contribute 2% of base salary per month to the deferred compensation plan.
If employee chooses to decline health insurance coverage, the City will contribute $465 to their deferred compensation account or cash in lieu of deferred compensation each month through June 30, 2023. Effective July 1, 2023, the potential monthly contribution increases to $600.
Confidential Employees Unit
Benefits mirror the designated units for each employee identified in this MOU.
Executive Management
Employees will receive a non-PERSable stipend equal to 6% of their base salary. The 6% stipend can be cashed out or placed into a deferred compensation account. This option can occur anytime during the fiscal year. The stipend will be forfeited at separation or on June 30 each year, if not cashed out or placed into a deferred compensation account. An employee hired after July 1, will receive a prorated stipend in the fiscal year in which they were hired.
The City will also contribute 5% per month to the deferred compensation plan.
If employee chooses to decline health insurance coverage, the City will contribute $600 to their deferred compensation account or cash in lieu of deferred compensation each month The City’s required contributions for the year ended June 30, 2023 totaled $889,523. 93 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – RISK MANAGEMENT
A. Coverage
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) $34,500,000
All Risk Fire and Property:
Property ($25,000 all risk, $5,000 fine art, $10,000 water claims) 1,000,000,000 Flood* 25,000,000
Boiler and Machinery ($10,000) 100,000,000
Vehicle Physical Damage ($3,000 police; $2,000 others) 250,000 Cyber Liability ($50,000) 4,000,000
Public Entity Pollution Liability ($250,000) 2,000,000
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 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.
94 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2021 $448,536 $357,568 $806,104
Net change in:
Liability for current fiscal year claims 317,948 317,948 Liability for prior fiscal years' claims and
claims incurred but not reported (IBNR) 216,051 389,901 605,952 Claims paid (25,019) (195,883) (220,902)
Balance June 30, 2022 639,568 869,534 1,509,102
Net change in:
Liability for current fiscal year claims 83,968 83,968
Liability for prior years' claims and
claims incurred but not reported (IBNR) 142,022 200,158 342,180 Claims paid (5,040) (314,568) (319,608)
Balance June 30, 2023 $776,550 $839,092 $1,615,642
Claims liability, due within one year $727,204 $839,092 $1,566,296 For the fiscal years ended June 30, 2023, 2022, and 2021 the amount of settlements did not exceed insurance coverage.
NOTE 14 – LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivables or liabilities with an initial, individual value of $5,000 or more.
Lessor - The City is a lessor for noncancellable leases of buildings and facilities. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements. 95 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
Lessee - The City is a lessee for a noncancellable leases of buildings and equipment. The City recognizes a lease liability and an intangible right‐to‐use lease asset (lease asset) in the government‐wide and proprietary fund financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
96 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASES (Continued)
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2023 were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
Communication Site Leases $648,470 $628,544
Total Governmental Activities Leases Receivable $648,470 $628,544 Communication Site Leases – The City leases various locations to third parties for the provisions of cable/mobile/wireless communications services. During the year ended June 30, 2023, the City had five leases, with original lease terms ranging from ten to twenty-five years, including the optional extension periods, and as of June 30, 2023, the leases had 2 to 14 years remaining. The City recognized $81,343 in lease revenue and $1,507 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
Municipal Golf Course Leases – The City leases buildings to a third party for the purpose of providing banquet facilities and a snack bar at the City’s municipal golf course. During the year ended June 30, 2023, the City had two leases, with original lease terms of twenty years, including the optional extension periods. The final payments under the leases were made during the fiscal year and the City recognized $11,225 in lease revenue and $3 in interest revenue during the current fiscal year related to these leases.
At the expiration of the leases, the agreements transitioned to month-to-month leases until new agreements were negotiated and executed in November 2023. 97 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASES (Continued)
C. Leases Payable
A summary of lease transactions for the fiscal year ended June 30, 2023, are as follows:
Balance Balance Current
June 30, 2022 Deductions June 30, 2023 Portion
Governmental Activities:
Building - Hensley $480,652 $159,464 $321,188 $165,045
Equipment 24,220 8,479 15,741 8,517
Total Governmental Activities $504,872 $167,943 $336,929 $173,562 Business-Type Activities:
Building - Mobile Modular $15,849 $7,301 $8,548 $7,325
Equipment 18,817 4,664 14,153 4,691
Total Business-Type Activities $34,666 $11,965 $22,701 $12,016 Total Leases Payable $539,538 $179,908 $359,630 $185,578 Building Lease - Hensley – The City entered into a five-year lease agreement with Hensley Properties, as lessee for the use of office space that commenced in May 2020. An initial lease liability was recorded in the amount of $634,944 during fiscal year 2022 and as of June 30, 2023, the value of the lease liability was $321,187. The City is required to make monthly principal and interest payments of $13,020. The lease bears the City’s incremental borrowing rate of 4.57%. The value of the right-to-use asset as of the end of the current fiscal year was $634,944 and had accumulated amortization of $324,227.
Equipment Leases – The City entered into two three-year lease agreement with Konica Minolta, as lessee for the use of office equipment in February 2022. An initial lease liability was recorded in the amount of $20,831 during fiscal year 2022 and as of June 30, 2023, the value of the lease liability was $11,023. The City is required to make monthly principal and interest payments of $6,987. The leases bear the City’s incremental borrowing rate of 4.26%. The value of the right-to-use assets as of the end of the current fiscal year was $20,831 and had accumulated amortization of $9,636.
The City entered into a five-year lease agreement with Pitney Bowes, as lessee for the use of office equipment that commenced in August 2021. An initial lease liability was recorded in the amount of $31,317 during fiscal year 2022 and as of June 30, 2023, the value of the lease liability was $4,718. The City is required to make monthly principal and interest payments of $6,349. The lease bears the City’s incremental borrowing rate of 5.77%. The value of the right-to-use asset as of the end of the current fiscal year was $31,317 and had accumulated amortization of $2,892.
Building Lease – Mobile Modular – The City entered into a five-year lease agreement with Mobile Modular Management Corporation, as lessee for the use of office space that commenced in August 2021. An initial lease liability was recorded in the amount of $21,922 during fiscal year 2022. as of June 30, 2023, the value of the lease liability was $8,548. The City is required to make monthly principal and interest payments of $7,341. The lease bears the City’s incremental borrowing rate of 3.15%. The value of the right-to-use asset as of the end of the current fiscal year was $21,922 and had accumulated amortization of $13,397.
98 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – LEASES (Continued)
The future principal and interest lease payments as of June 30, 2023, were as follows:
Governmental Activities Business-Type Activities
Year Ending Principal Interest Principal Interest
June 30 Payments Payments Total Payments Payments Total 2024 $173,562 $1,181 $174,743 $12,016 $87 $12,103
2025 161,787 378 162,165 5,941 45 5,986
2026 1,580 6 1,586 4,744 17 4,761
$336,929 $1,565 $338,494 $22,701 $149 $22,850
D. Shopping Center Parking Lease Agreement
In fiscal year 2007, the City entered into a lease agreement to lease public parking at a local 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. Therefore, the City has not recorded a liability for the lease, since the payments are contingent upon the collection of sales taxes. During fiscal year 2023, payments made to the developer under the agreement were $374,684 and payments to date total $4,324,575.
NOTE 15 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes SBITA assets/liabilities with an initial, individual value of $5,000 or more.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription. 99 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 15 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (Continued) The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported as longterm debt on the statement of net position.
A summary of governmental activities SBITA transactions for the fiscal year ended June 30, 2023, are as follows:
Balance
June 30, 2022 Balance Current
(as restated) Additions Deductions June 30, 2023 Portion Governmental Activities:
Subscription Liabilities
FloQast $45,756 $22,759 $22,997 $22,997
Axon 87,499 53,658 33,841 16,719
LCT Applications and Platforms $58,974 12,420 46,554 11,176 Microsoft Enterprise 1,149,138 228,064 921,074 221,744
NextRequest 54,527 7,200 47,327 7,405
Total Subscription Liabilities $1,336,920 $58,974 $324,101 $1,071,793 $280,041 As of June 30, 2023, the City had five active subscriptions. The subscriptions have annual payments that range from $8,404 to $244,955 and interest rates that range from 2.1843% to 3.2380%. As of June 30, 2023, the total combined value of the subscription liability was $1,071,793. The combined value of the right to use subscription assets as of the end of the current fiscal year was $1,395,894 and had accumulated amortization of $280,160. In addition, the City had one subscription in process that is effective in fiscal year 2024 and the costs incurred to date on that agreement have been recorded as subscription assets in progress in the amount of $109,205 as of June 30, 2023.
The future principal and interest subscription liability payments as of June 30, 2023 for the active subscriptions, were as follows:
Governmental Activities
Year Ending Principal Interest
June 30 Payments Payments Total
2024 $280,041 $26,739 $306,780
2025 263,525 19,788 283,313
2026 252,635 13,217 265,852
2027 259,024 6,864 265,888
2028 8,181 350 8,531
2029 8,387 177 8,564
$1,071,793 $67,135 $1,138,928
100
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – 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.
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, 2023, the City had outstanding reimbursement commitments totaling $28,534,773.
D. 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. 101
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – 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.
The grand opening of the Project was held in June 2021.
The City began collecting TOT revenue related to the Project during fiscal year 2022 and $3,598,531 was paid to the Developer during fiscal year 2023 and $6,966,715 has been paid to date. As of June 30, 2023, the deferred fees due from the developer total $8,082,857, 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 $540,000 as of June 30, 2023.
E. 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. Construction of the retail furniture store was delayed due to the COVID-19 emergency; however, the project was fully permitted in July 2020 and construction began immediately following. The store opened in June 2021. During fiscal year 2023, payments made to the developer under the agreement were $308,571 and payments to date total $308,571. 102
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 16 – COMMITMENTS AND CONTINGENCIES (Continued)
F. Construction Commitments
The City has the outstanding construction commitments totaling $15.6 million as of June 30, 2023.
NOTE 17 – 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.
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.
103
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
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.
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. 104
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
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, 2023 are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2023.
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, 2023 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
105
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
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, 2023, 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, 2023, 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.
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. 106
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Capital assets recorded as of June 30, 2023 comprise:
Balance at Balance at
June 30, 2022 Additions Retirements June 30, 2023
Capital assets not being depreciated:
Land $3,333,997 ($2,607,971) $726,026
Capital assets being depreciated:
Buildings and improvements 3,788,211 3,788,211
Less accumulated depreciation (2,047,884) ($125,618) (2,173,502) Net capital assets being depreciated 1,740,327 (125,618) 1,614,709 Capital assets, net $5,074,324 ($125,618) ($2,607,971) $2,340,735 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, 2022 Retirements June 30, 2023 Portion
Redevelopment Agency Tax
Allocation Bonds -
Tax Allocation Refunding Bonds Series 2020A and 2020B
Subordinated Tax Allocation Bonds 1.590-4.0% $91,755,000 $4,255,000 $87,500,000 $4,315,000 Plus: Unamortized Bond Premium 4,821,830 235,211 4,586,619 Total Successor Agency Debt $96,576,830 $4,490,211 $92,086,619 $4,315,000 107
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
2. Redevelopment Agency Tax Allocation Bonds
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 $118,133,235 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 2023 calculated by the County AuditorController was $26,653,145 and the total received by the Successor Agency for fiscal year 2023 debt service was $1,427,520, which the Agency used, along with cash on hand, to pay the $6,894,891 of fiscal year debt service.
3. Debt Service Requirements
Annual debt service requirements, are shown below:
For the Year
Ending June 30 Principal Interest
2024 $4,315,000 $2,551,099
2025 4,385,000 2,458,104
2026 4,450,000 2,360,709
2027 4,530,000 2,256,328
2028 4,610,000 2,137,456
2029-2033 24,915,000 8,571,964
2034-2038 24,755,000 5,403,460
2039-2043 15,540,000 4,894,115
Total 87,500,000 $30,633,235
Plus Bond Premium 4,586,619
Gross Long Term Debt $92,086,619
108
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
E. Commitments and Contingencies
Payable to San Joaquin County
When the Successor Agency sells capital assets, the net proceeds from the sale are to be remitted to the County Auditor-Controller for distribution to the taxing entities in the affected redevelopment area. During the year ended June 30, 2023, the Successor Agency sold a parcel of land to the City and the net proceeds of $1,760,625 were due and payable to the County as of June 30, 2023.
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.
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REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Total Pension Liability
Service Cost $2,865,004 $2,785,261 $2,929,446 $3,359,127 Interest 9,470,268 9,947,329 10,547,066 11,091,828
Differences between expected and actual experience (606,531) 895,276 280,782 Changes in assumptions (2,540,846) 9,610,904
Changes in benefits
Benefit payments, including refunds of employee contributions (5,192,533) (5,583,081) (6,137,452) (6,508,026) Net change in total pension liability 7,142,739 4,002,132 8,234,336 17,834,615 Total pension liability - beginning 127,434,003 134,576,742 138,578,874 146,813,210 Total pension liability - ending (a) $134,576,742 $138,578,874 $146,813,210 $164,647,825 Plan fiduciary net position
Contributions - employer $3,345,873 $4,021,488 $4,687,535 $4,971,846 Contributions - employee 1,159,125 1,275,356 1,337,368 1,321,071 Net investment income 14,228,681 2,149,298 530,419 10,909,900 Net Plan to Plan Resource Movement
Administrative expenses (109,588) (59,337) (144,277)
Other Miscellaneous Income (Expense)
Benefit payments, including refunds of employee contributions (5,192,533) (5,583,081) (6,137,452) (6,508,026) Net change in plan fiduciary net position 13,541,146 1,753,473 358,533 10,550,514 Plan fiduciary net position - beginning 82,066,942 95,608,088 97,361,561 97,720,094 Plan fiduciary net position - ending (b) $95,608,088 $97,361,561 $97,720,094 $108,270,608 Net pension liability - ending (a)-(b) $38,968,654 $41,217,313 $49,093,116 $56,377,217 Plan fiduciary net position as a percentage of the total pension liability 71.04% 70.26% 66.56% 65.76% Covered payroll $14,222,604 $15,260,582 $15,917,657 $16,420,663 Net pension liability as percentage of covered payroll 273.99% 270.09% 308.42% 343.33% Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation.
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan 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, 2020 and 2021 there were no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. 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).
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last 10 Years*
112
REQUIRED SUPPLEMENTARY INFORMATION
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
$3,450,233 $3,662,753 $3,713,864 $3,711,204 $4,302,617
11,413,314 12,088,271 12,825,762 13,444,999 14,048,114
(1,730,389) 2,008,072 2,643,438 886,800 346,337
(1,373,783) 7,180,122
(7,283,995) (7,791,837) (8,419,092) (9,109,794) (9,739,112) 4,475,380 9,967,259 10,763,972 8,933,209 16,138,078
164,647,825 169,123,205 179,090,464 189,854,436 198,787,645 $169,123,205 $179,090,464 $189,854,436 $198,787,645 $214,925,723 $5,489,151 $5,845,005 $6,475,687 $6,960,408 $7,828,674
1,484,945 1,613,156 1,571,752 1,533,922 1,651,472
9,098,992 7,772,814 6,213,521 29,607,098 (12,103,385)
(269) (218) (572)
(168,715) (83,187) (174,706) (129,456) (98,708)
(320,393) 269
(7,283,995) (7,791,837) (8,419,092) (9,109,794) (9,739,112) 8,299,716 7,356,002 5,667,162 28,861,606 (12,461,059)
108,270,608 116,570,324 123,926,326 129,593,488 158,455,094 $116,570,324 $123,926,326 $129,593,488 $158,455,094 $145,994,035 $52,552,881 $55,164,138 $60,260,948 $40,332,551 $68,931,688
68.93% 69.20% 68.26% 79.71% 67.93%
$17,179,599 $20,193,041 $21,471,907 $20,618,181 $22,822,694 305.90% 273.18% 280.65% 195.62% 302.03%
113
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous 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 Actuarially determined contribution $4,021,488 $4,687,535 $4,021,488 $5,172,358 $5,842,872 Contributions in relation to the actuarially determined contributions (4,019,753) (4,687,535) (4,021,488) (5,172,358) (5,842,872) Contribution deficiency (excess) $1,735 $0 $0 $0 $0
Covered payroll $15,260,582 $15,917,657 $16,420,663 $17,179,599 $20,193,041 Contributions as a percentage of covered payroll 26.35% 29.45% 24.49% 30.11% 28.94% Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 For the Fiscal Year Ended June 30, 2020 2021 2022 2023
Actuarially determined contribution $6,477,118 $7,061,971 $7,838,893 $8,561,953 Contributions in relation to the actuarially determined contributions (6,477,118) (7,061,971) (7,838,893) (8,561,953) Contribution deficiency (excess) $0 $0 $0 $0
Covered payroll $21,471,907 $20,618,181 $22,822,694 $24,809,517 Contributions as a percentage of covered payroll 30.17% 34.25% 34.35% 34.51% Valuation date: 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Notes to Schedule
Valuation date: 6/30/2021
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, 2.50% for 2021 and 2022, and 2.30% for 2023 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, 2021, and 2022, 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 2023, pre-retirement and postretirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for 2021 and 2022 and 6.80% for 2023, net of administrative expenses, including inflation
114
REQUIRED SUPPLEMENTARY INFORMATION
Safety Plan
Cost Sharing Multiple-Employer Defined Pension Plan
Last 10 Years*
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Plan's proportion of the Net Pension Liability (Asset) 1.07938% 1.03004% 0.95974% 0.93552% 0.95843% 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 Plan's Covered Payroll 11,200,196 12,280,143 12,543,342 12,807,240 13,238,467 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% Plan's Fiduciary Net Position as a Percentage of the
Plan's Total Pension Liability 79.82% 78.40% 74.06% 73.31% 75.26% 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Plan's proportion of the Net Pension Liability (Asset) 0.95585% 0.95974% 1.27699% 1.05081% Plan's proportion share of the Net Pension Liability (Asset) $59,669,242 $63,941,257 $44,815,713 $72,207,303 Plan's Covered Payroll 14,330,518 17,965,730 15,113,158 15,917,533 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 416.38% 355.91% 296.53% 453.63% Plan's Fiduciary Net Position as a Percentage of the
Plan's Total Pension Liability 75.26% 75.10% 88.29% 76.68% * - Fiscal year 2015 was the 1st year of implementation.
115
REQUIRED SUPPLEMENTARY INFORMATION
Safety Plan
Cost Sharing Multiple-Employer Defined Benefit Pension Plan Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
2015 2016 2017 2018 2019
Actuarially determined contribution $4,331,842 $4,055,568 $4,455,903 $4,959,631 $5,719,302 Contributions in relation to the actuarially
determined contributions (4,331,842) (4,055,568) (4,455,903) (4,959,631) (5,719,302) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $12,280,143 $12,543,342 $12,807,240 $13,238,467 $14,330,518 Contributions as a percentage of covered payroll 35.28% 32.33% 34.79% 37.46% 39.91% 2020 2021 2022 2023
Actuarially determined contribution $6,571,899 $7,215,323 $7,786,074 $8,516,327 Contributions in relation to the actuarially
determined contributions (6,571,899) (7,215,323) ($7,786,074) (8,516,327) Contribution deficiency (excess) $0 $0 $0 $0
Covered payroll $17,965,730 $15,113,158 $15,917,533 $16,945,456 Contributions as a percentage of covered payroll 36.58% 51.52% 48.92% 50.26% * - Fiscal year 2015 was the first year of implementation. 116
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 6/30/2021 6/30/2022 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 $102,103 $93,001 Differences between expected and actual experience 53,000 47,056 (83,407) 53,376 Changes in assumptions 86,000 659,042 (75,860) (54,339) 133,365 19,556 Changes in benefits
Benefit payments, including refunds of employee
contributions (97,000) (99,000) (112,000) (137,000) (139,237) (146,447) (160,537) (163,748) (167,023) Net change in total pension liability 58,000 50,000 161,000 6,000 710,583 (115,229) (189,308) 71,720 (1,090) Total pension liability - beginning 2,237,000 2,295,000 2,345,000 2,506,000 2,512,000 3,222,583 3,107,354 2,918,046 2,989,766 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 $2,989,766 $2,988,676 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 $212,741 ($226,244) Administrative expenses (7,000) (7,000) (8,000) (8,000) (9,143) (9,920) (9,649) (9,360) (8,790) Benefit payments, including refunds of employee
contributions (97,000) (99,000) (112,000) (137,000) (139,237) (146,447) (160,537) (163,748) (167,023) Net change in plan fiduciary net position 210,000 160,000 201,000 174,000 304,747 (31,653) (64,449) 39,633 (402,057) Plan fiduciary net position - beginning 1,289,000 1,499,000 1,659,000 1,860,000 2,034,000 2,338,747 2,307,094 2,242,645 2,282,278 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 $2,282,278 $1,880,221 Net pension liability - ending (a)-(b) $796,000 $686,000 $646,000 $478,000 $883,836 $800,260 $675,401 $707,488 $1,108,455 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% 76.34% 62.91% 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 N/A N/A Notes to Schedule:
Changes in assumptions. The discount rate was updated. General Inflation was updated to 2.50%. * - 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.
117
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 2022 2023 Actuarially determined contribution $204,000 $280,000 $297,000 $391,000 $0 $97,000 $100,000 $100,000 $208,000 Contributions in relation to the actuarially determined contributions (246,689) (272,689) (290,000) (400,000) 0 0 0 0 (330,000) Contribution deficiency (excess) ($42,689) $7,311 $7,000 ($9,000) $0 $97,000 $100,000 $100,000 ($122,000) Covered payroll $653,039 $586,464 $182,068 $186,997 $0 (A) $0 (A) $0 (A) $0 (A) $0 (A) Contributions as a percentage of covered payroll 37.78% 46.50% 159.28% 213.91% 0% 0% 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 6/30/2020 6/30/2022 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 6-year fixed period for 2022/23 Asset valuation method Investment gains and losses spread over a 5-year rolling period Discount rate 3.20%
Inflation
Projected Salary Increase
Mortality Rate Table CalPERS 2000-2019 Experience Study Mortality Improvement Scale Post - retirement mortality projected fully generational with Scale MP-2021 * - Fiscal year 2015 was the 1st year of implementation. (A) All Plan participants were retired as of July 1, 2018
2.50%
3.00%
118
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS Single-Employer Other Post-Employment Benefit Plan
Last 10 fiscal years*
Measurement Date 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 Total OPEB Liability (1)
Service Cost $1,509,000 $1,263,802 $1,183,810 $1,323,555 $1,767,370 $1,820,051 Interest 1,059,000 1,235,540 1,299,001 1,256,947 968,637 971,080 Changes of benefit terms
Differences between expected and actual experience (256,511) 866,800 811,844 Changes of assumptions (3,276,000) (1,351,768) 1,523,401 5,876,460 288,190 (7,876,327) Benefit payments (1,631,000) (1,733,000) (1,781,930) (1,816,214) (1,885,034) (2,013,440) Net change in total OPEB liability (2,339,000) (841,937) 2,224,282 7,507,548 1,139,163 (6,286,792) Total OPEB liability - beginning 36,454,000 34,115,000 33,273,063 35,497,345 43,004,893 44,144,056 Total OPEB liability - ending (a) $34,115,000 $33,273,063 $35,497,345 $43,004,893 $44,144,056 $37,857,264 Covered-employee payroll $38,034,624 $31,729,215 $39,889,613 $36,097,420 $39,082,228 $44,166,566 Total OPEB liability as a percentage of covered-employee payroll 89.69% 104.87% 88.99% 119.14% 112.95% 85.71% 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: The discount rate was updated based on the municipal bond rate at the measurement date
* Fiscal year 2018 was the first year of implementation. 119
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SUPPLEMENTARY INFORMATION
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MAJOR GOVERNMENTAL FUNDS, OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
SPECIAL APPORTIONMENT STREETS FUND
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.
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. 123
CITY OF MANTECA
SPECIAL APPORTIONMENT STREETS FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $25,363 $56,837 $31,474
Revenue from other agencies 5,933,198 5,933,198
Total Revenues 25,363 5,990,035 5,964,672
EXPENDITURES:
Current:
Streets and highways 1,385,785 1,417,712 (31,927)
Capital outlay 15,949,707 11,898,994 4,050,713
Total Expenditures 17,335,492 13,316,706 4,018,786
NET CHANGE IN FUND BALANCE ($17,310,129) (7,326,671) $9,983,458 BEGINNING FUND BALANCE 726,934
ENDING FUND BALANCE (DEFICIT) ($6,599,737)
124
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, 2023
Variance
Positive
Budget Actual (Negative)
REVENUES
Use of money and property $107,085 $626,211 $519,126
Charges for current services 11,076,000 8,904,138 (2,171,862) Total Revenues 11,183,085 9,530,349 (1,652,736)
EXPENDITURES
Current:
Public works 370,927 409,403 (38,476)
Capital outlay 17,381,014 3,253,840 14,127,174
Debt service:
Interest and fiscal charges 84,685 (84,685)
Total Expenditures 17,751,941 3,747,928 14,004,013
NET CHANGE IN FUND BALANCE ($6,568,856) 5,782,421 $12,351,277 BEGINNING FUND BALANCE 40,860,666
ENDING FUND BALANCE $46,643,087
125
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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. 127
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.
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.
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.
ENGINEERING SERVICES
Established to account for developer fees used to oversee planning, design, and construction for new capital projects.
COVID RELIEF
Established to account for federal grant funding and expenditures dedicated to support the City’s response to COVID-19.
128
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, as well as fire sprinkler fees. Financing is provided by government building facilities fees and fire fees imposed on developments.
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.
FIRE FACILITIES FEE
Established to account for financing and construction activities related to Fire Facilities. Financing is provided by fees imposed on developments.
129
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
NEIGHBORHOOD PARKS IN LIEU FEE
Established to account for fees paid by developers in-lieu of building and dedicating a park when a development is determined to be too small to develop their own neighborhood park.
GAS TAX SB1
Established to account for the Road Maintenance and Rehabilitation Account that addresses deferred maintenance of the local street and road systems and is funded by the State of California. 130
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CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
Supplemental
Community Law
Development Enforcement Street
Block Grant Police Grants Services Recreation Improvements ASSETS
Cash and investments $2,674 $560,111 $530,519 $49,572
Restricted cash and investments
Accounts receivables (net of allowance for
estimated uncollectible accounts) $445,753 167,292 3,700 Taxes receivable
Interest receivable
Leases receivable
Total Assets $445,753 $169,966 $560,111 $534,219 $49,572
LIABILITIES
Accounts payable $184,363 $75,351 $20,694 $53,077
Contracts payable
Refundable deposits 142,316
Due to other funds 328,032
Unearned revenue
Total Liabilities 512,395 75,351 20,694 195,393
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 72,803 9,294
Related to leases
Total Deferred Inflows of Resources 72,803 9,294
FUND BALANCE
Fund balance:
Restricted 85,321 539,417 338,826 $49,572
Committed
Unassigned (139,445)
Total Fund Balances (139,445) 85,321 539,417 338,826 49,572 Total Liabilities and Fund Balances $445,753 $169,966 $560,111 $534,219 $49,572
SPECIAL REVENUE FUNDS
132
SPECIAL REVENUE FUNDS
Landscape
Major and Lighting Public Community Public
Equipment Maintenance Safety Development Development Facilities Fire Safety Purchase Fee District Endowment Fee Services Mitigation Districts Grants Sales Tax $1,271,149 $1,498,593 $13,758,276 $9,864,063 $3,665,087 $4,046,880 99,968 1,342,706 $304,113
1,743,334
$1,371,117 $1,498,593 $15,100,982 $9,864,063 $3,665,087 $304,113 $5,790,214 $21,616 $110,020 $6,458 $36,620 $12,699
22,072
$304,113
21,616 110,020 6,458 58,692 304,113 12,699
$99,968 1,319,434 304,113
99,968 1,319,434 304,113
1,271,149 1,476,977 13,671,528 9,857,605 3,606,395 5,777,515 (304,113)
1,271,149 1,476,977 13,671,528 9,857,605 3,606,395 (304,113) 5,777,515 $1,371,117 $1,498,593 $15,100,982 $9,864,063 $3,665,087 $304,113 $5,790,214 (Continued)
133
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
CAPITAL
SPECIAL REVENUE FUNDS IMPROVEMENT FUNDS
Innovation State Regional
and Engineering COVID Gasoline Transportation
Technology Services Relief Tax Impact Fees
ASSETS
Cash and investments $272,328 $293,413 $9,379,130 $1,887,923 $18,446,549 Restricted cash and investments
Accounts receivables (net of allowance for
estimated uncollectible accounts) 28,828
Taxes receivable 191,589
Interest receivable 651
Leases receivable 648,470
Total Assets $921,449 $322,241 $9,379,130 $2,079,512 $18,446,549
LIABILITIES
Accounts payable $10,320 $114,875 $133,561 $278,638
Contracts payable
Refundable deposits 20,308
Due to other funds 25,481
Unearned revenue 9,371,151
Total Liabilities 35,801 9,486,026 133,561 298,946
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Related to leases $628,544
Total Deferred Inflows of Resources 628,544
FUND BALANCE
Fund balance:
Restricted 286,440 1,945,951 18,147,603
Committed 292,905
Unassigned (106,896)
Total Fund Balances 292,905 286,440 (106,896) 1,945,951 18,147,603 Total Liabilities and Fund Balances $921,449 $322,241 $9,379,130 $2,079,512 $18,446,549 134
CAPITAL IMPROVEMENT FUNDS
Government Redevelopment Fire Neighborhood
Building Flood Bonds Facilities Parks Gas Tax
Measure K Parks Facilities Protection Projects Fee In Lieu Fee SB1 $10,726,538 $14,895,225 $32,785,483 $188,969 $3,625,926 $3,998,451 $5,384,669 130,380 $7,664,237
637,891 99,968
488,332 339,679
$11,214,870 $15,025,605 $33,423,374 $188,969 $7,664,237 $3,725,894 $3,998,451 $5,724,348 $12,623 $182,375
$2,214
130,380
12,623 132,594 182,375
$637,891 $99,968
637,891 99,968
11,202,247 14,893,011 32,785,483 6,594 $7,664,237 3,625,926 $3,998,451 $5,724,348 11,202,247 14,893,011 32,785,483 6,594 7,664,237 3,625,926 3,998,451 5,724,348 $11,214,870 $15,025,605 $33,423,374 $188,969 $7,664,237 $3,725,894 $3,998,451 $5,724,348 (Continued)
135
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $137,131,528
Restricted cash and investments 7,794,617
Accounts receivables (net of allowance for
estimated uncollectible accounts) 3,130,219
Taxes receivable 2,762,934
Interest receivable 651
Leases receivable 648,470
Total Assets $151,468,419
LIABILITIES
Accounts payable $1,253,290
Contracts payable 2,214
Refundable deposits 315,076
Due to other funds 657,626
Unearned revenue 9,371,151
Total Liabilities 11,599,357
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 2,543,471
Related to leases 628,544
Total Deferred Inflows of Resources 3,172,015
FUND BALANCE
Fund balance:
Restricted 136,954,596
Committed 292,905
Unassigned (550,454)
Total Fund Balances 136,697,047
Total Liabilities and Fund Balances $151,468,419
136
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CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Supplemental
Community Law
Development Enforcement Street
Block Grant Police Grants Services Recreation Improvements
REVENUES
Sales taxes
Licenses and permits
Use of money and property $6,717 $1,067
Revenue from other agencies $442,142 $360,539 225,930
Charges for current services $908,948
Other revenue 6,000
Total Revenues 442,142 366,539 232,647 908,948 1,067
EXPENDITURES
Current:
General government 449,004
Community development
Public safety 136,539 17,301
Public works
Parks and recreation 1,563,468
Streets and highways
Capital outlay 66,467 158,938 11,694 35,245 5,600
Debt service:
Principal 3,443
Interest and fiscal charges 31
Total Expenditures 515,471 295,477 28,995 1,602,187 5,600
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (73,329) 71,062 203,652 (693,239) (4,533)
OTHER FINANCING SOURCES (USES)
Transfers in 902,000
Transfers out
Issuance of SBITA
Total Other Financing Sources (Uses) 902,000
NET CHANGE IN FUND BALANCES (73,329) 71,062 203,652 208,761 (4,533) BEGINNING FUND BALANCES (66,116) 14,259 335,765 130,065 54,105 ENDING FUND BALANCES ($139,445) $85,321 $539,417 $338,826 $49,572
SPECIAL REVENUE FUNDS
138
SPECIAL REVENUE FUNDS
Landscape
Major and Lighting Public Community Public
Equipment Maintenance Safety Development Development Facilities Fire Safety Purchase Fee District Endowment Fee Services Mitigation Districts Grants Sales Tax $10,233,014
$4,855,034
$32,586 ($994) $6,389 194,408 $133,572 $70,282 59,716
330,948 1,383,754 1,477,561 368,332 1,788,392
10 920
363,534 1,382,770 6,389 6,527,003 501,904 1,859,594 10,292,730 128,425
4,378,840
$116,074 9,890,333
938,616
1,242,112 24,658
171,143 116,574 273,539 128,853 1,600
171,885
1,863
1,413,255 4,797,587 273,539 1,092,127 116,074 9,891,933 363,534 (30,485) 6,389 1,729,416 228,365 767,467 (116,074) 400,797 250,070
(53,386) (821,912)
58,974
(53,386) (762,938) 250,070
363,534 (30,485) (46,997) 966,478 228,365 767,467 133,996 400,797 907,615 1,507,462 46,997 12,705,050 9,629,240 2,838,928 (438,109) 5,376,718 $1,271,149 $1,476,977 $13,671,528 $9,857,605 $3,606,395 ($304,113) $5,777,515 (Continued)
139
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
CAPITAL
SPECIAL REVENUE FUNDS IMPROVEMENT FUNDS
Innovation State Regional
and Engineering COVID Gasoline Transportation
Technology Services Relief Tax Impact Fees
REVENUES
Sales taxes
Licenses and permits
Use of money and property $6,316 $81,399 $259,606
Revenue from other agencies $29,623 $2,196,007 2,183,413 Charges for current services 1,947,135 2,264,002
Other revenue 115,555 72,836 22,126 2
Total Revenues 121,871 2,049,594 2,196,007 2,286,938 2,523,610
EXPENDITURES
Current:
General government
Community development
Public safety 1,191,634
Public works 2,585,066 20,502
Parks and recreation 3,865
Streets and highways 2,504,076 8,371
Capital outlay 1,004,373 451 3,372,362
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,585,066 2,196,007 2,528,894 3,380,733
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 121,871 (535,472) (241,956) (857,123)
OTHER FINANCING SOURCES (USES)
Transfers in 821,912
Transfers out (3,833,526)
Issuance of SBITA
Total Other Financing Sources (Uses) 821,912 (3,833,526) NET CHANGE IN FUND BALANCES 121,871 286,440 (4,075,482) (857,123) BEGINNING FUND BALANCES 171,034 (106,896) 6,021,433 19,004,726 ENDING FUND BALANCES $292,905 $286,440 ($106,896) $1,945,951 $18,147,603 140
CAPITAL IMPROVEMENT FUNDS
Government Redevelopment Fire Neighborhood
Building Flood Bonds Facilities Parks Gas Tax
Measure K Parks Facilities Protection Projects Fee In Lieu Fee SB1 $5,081,826 $1,152,790
$107,883 $104,667 307,847 $9,765 $1,298,489 34,305 $21,437 2,012,700 $1,938,477
3,587,446 1,318,549
2,120,583 3,692,113 5,389,673 9,765 1,298,489 1,187,095 1,339,986 1,938,477 421,674
172,000
23,298
483,757 102,913 23,054 47,655
928,729 172,000 102,913 23,054 47,655
1,191,854 3,520,113 5,389,673 9,765 1,195,576 1,187,095 1,316,932 1,890,822 2,438,831 2,681,519 3,833,526
(2,681,519) (2,438,831)
(2,681,519) (2,438,831) 2,438,831 2,681,519 3,833,526
1,191,854 838,594 2,950,842 9,765 1,195,576 3,625,926 3,998,451 5,724,348 10,010,393 14,054,417 29,834,641 (3,171) 6,468,661
$11,202,247 $14,893,011 $32,785,483 $6,594 $7,664,237 $3,625,926 $3,998,451 $5,724,348 (Continued)
141
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Total
Nonmajor
Governmental
Funds
REVENUES
Sales taxes $10,233,014
Licenses and permits 11,089,650
Use of money and property 2,735,457
Revenue from other agencies 9,388,831
Charges for current services 15,375,067
Other revenue 217,449
Total Revenues 49,039,468
EXPENDITURES
Current:
General government 577,429
Community development 4,378,840
Public safety 11,351,881
Public works 3,965,858
Parks and recreation 3,006,103
Streets and highways 2,535,745
Capital outlay 6,004,218
Debt service:
Principal 175,328
Interest and fiscal charges 1,894
Total Expenditures 31,997,296
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 17,042,172
OTHER FINANCING SOURCES (USES)
Transfers in 10,927,858
Transfers out (9,829,174)
Issuance of SBITA 58,974
Total Other Financing Sources (Uses) 1,157,658
NET CHANGE IN FUND BALANCES 18,199,830
BEGINNING FUND BALANCES 118,497,217
ENDING FUND BALANCES $136,697,047
142
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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, 2023
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
Revenue from other agencies $899,853 $442,142 ($457,711) $364,387 $360,539 ($3,848) Charges for current services
Other revenue 6,000 6,000
Total Revenues 899,853 442,142 (457,711) 364,387 366,539 2,152
EXPENDITURES
Current:
General government 899,853 449,004 450,849
Community development
Public safety 159,646 136,539 23,107
Public works
Parks and recreation
Streets and highways
Capital outlay 36,467 66,467 (30,000) 161,111 158,938 2,173 Debt service:
Principal
Interest and fiscal charges
Total Expenditures 936,320 515,471 420,849 320,757 295,477 25,280
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (36,467) (73,329) (36,862) 43,630 71,062 27,432
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Issuance of SBITA
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($36,467) (73,329) ($36,862) $43,630 71,062 $27,432 BEGINNING FUND BALANCES (DEFICIT) (66,116) 14,259
ENDING FUND BALANCES (DEFICIT) ($139,445) $85,321
144
SUPPLEMENTAL LAW
ENFORCEMENT SERVICES RECREATION STREET IMPROVEMENTS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $50 $6,717 $6,667 $1,067 $1,067
222,000 225,930 3,930
$976,600 $908,948 ($67,652)
222,050 232,647 10,597 976,600 908,948 (67,652) 1,067 1,067 34,246 17,301 16,945
1,840,416 1,563,468 276,948
498 11,694 (11,196) 138,415 35,245 103,170 $5,600 5,600 3,443 (3,443)
31 (31)
34,744 28,995 5,749 1,978,831 1,602,187 376,644 5,600 5,600 187,306 203,652 16,346 (1,002,231) (693,239) 308,992 (5,600) (4,533) 1,067 902,000 902,000
902,000 902,000
$187,306 203,652 $16,346 ($100,231) 208,761 $308,992 ($5,600) (4,533) $1,067 335,765 130,065 54,105
$539,417 $338,826 $49,572
(Continued)
145
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, 2023
MAJOR EQUIPMENT LANDSCAPE AND
PURCHASE FEE LIGHTING MAINTENANCE DISTRICT
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits
Use of money and property $145 $32,586 $32,441 $324 ($994) ($1,318) Revenue from other agencies
Charges for current services 386,000 330,948 (55,052) 1,335,210 1,383,754 48,544 Other revenue 10 10
Total Revenues 386,145 363,534 (22,611) 1,335,534 1,382,770 47,236
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation 1,180,199 1,242,112 (61,913)
Streets and highways
Capital outlay 103,351 171,143 (67,792)
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 1,283,550 1,413,255 (129,705)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 386,145 363,534 (22,611) 51,984 (30,485) (82,469)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Issuance of SBITA
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES $386,145 363,534 ($22,611) $51,984 (30,485) ($82,469) BEGINNING FUND BALANCES 907,615 1,507,462
ENDING FUND BALANCES (DEFICIT) $1,271,149 $1,476,977
146
PUBLIC SAFETY
ENDOWMENT FEE DEVELOPMENT SERVICES DEVELOPMENT MITIGATION Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $3,650,000 $4,855,034 $1,205,034
$6,389 $6,389 4,117 194,408 190,291 $7,108 $133,572 $126,464 1,730,000 1,477,561 (252,439) 362,000 368,332 6,332
6,389 6,389 5,384,117 6,527,003 1,142,886 369,108 501,904 132,796 250,000 128,425 121,575
5,544,034 4,378,840 1,165,194
116,574 (116,574) 383,061 273,539 109,522
171,885 (171,885)
1,863 (1,863)
5,794,034 4,797,587 996,447 383,061 273,539 109,522
6,389 6,389 (409,917) 1,729,416 2,139,333 (13,953) 228,365 242,318 (53,386) (53,386) (821,912) (821,912)
58,974 58,974
(53,386) (53,386) (762,938) (762,938)
(46,997) ($46,997) ($409,917) 966,478 $1,376,395 ($13,953) 228,365 $242,318 46,997 12,705,050 9,629,240
$13,671,528 $9,857,605
(Continued)
147
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, 2023
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 $70,282 $70,282
Revenue from other agencies
Charges for current services $1,322,320 1,788,392 466,072 Other revenue 920 920
Total Revenues 1,322,320 1,859,594 537,274
EXPENDITURES
Current:
General government
Community development
Public safety $340,400 $116,074 $224,326
Public works 1,353,073 938,616 414,457
Parks and recreation 500 24,658 (24,158)
Streets and highways
Capital outlay 111,975 128,853 (16,878)
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 1,465,548 1,092,127 373,421 340,400 116,074 224,326
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (143,228) 767,467 910,695 (340,400) (116,074) 224,326
OTHER FINANCING SOURCES (USES)
Transfers in 250,070 250,070
Transfers out
Issuance of SBITA
Total Other Financing Sources (Uses) 250,070 250,070
NET CHANGE IN FUND BALANCES ($143,228) 767,467 $910,695 ($340,400) 133,996 $474,396 BEGINNING FUND BALANCES 2,838,928 (438,109)
ENDING FUND BALANCES (DEFICIT) $3,606,395 ($304,113)
148
PUBLIC SAFETY SALES TAX INNOVATION AND TECHNOLOGY ENGINEERING SERVICES Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $10,497,000 $10,233,014 ($263,986)
15,029 59,716 44,687 $6,316 $6,316
$101,200 (101,200) $51,000 $29,623 ($21,377)
3,077,000 1,947,135 (1,129,865)
90,000 115,555 25,555 95,000 72,836 (22,164)
10,512,029 10,292,730 (219,299) 191,200 121,871 (69,329) 3,223,000 2,049,594 (1,173,406) 9,828,193 9,890,333 (62,140)
2,751,475 2,585,066 166,409
101,200 101,200
17,204 1,600 15,604
9,845,397 9,891,933 (46,536) 101,200 101,200 2,751,475 2,585,066 166,409 666,632 400,797 (265,835) 90,000 121,871 31,871 471,525 (535,472) (1,006,997) 821,912 821,912
821,912 821,912
$666,632 400,797 ($265,835) $90,000 121,871 $31,871 $471,525 286,440 ($185,085) 5,376,718 171,034
$5,777,515 $292,905 $286,440
(Continued)
149
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, 2023
COVID RELIEF STATE GASOLINE TAX
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits
Use of money and property $7,336 $81,399 $74,063
Revenue from other agencies $2,196,007 $2,196,007 2,204,987 2,183,413 (21,574) Charges for current services
Other revenue 22,126 22,126
Total Revenues 2,196,007 2,196,007 2,212,323 2,286,938 74,615
EXPENDITURES
Current:
General government
Community development
Public safety $1,197,000 1,191,634 5,366
Public works 27,000 20,502 6,498
Parks and recreation 4,000 3,865 135
Streets and highways 2,606,045 2,504,076 101,969
Capital outlay 1,004,374 1,004,373 1 2,007,725 451 2,007,274 Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,201,374 2,196,007 5,367 4,644,770 2,528,894 2,115,876
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,201,374) 2,201,374 (2,432,447) (241,956) 2,190,491
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (3,833,526) (3,833,526)
Issuance of SBITA
Total Other Financing Sources (Uses) (3,833,526) (3,833,526) NET CHANGE IN FUND BALANCES ($2,201,374) $2,201,374 ($2,432,447) (4,075,482) ($1,643,035) BEGINNING FUND BALANCES (106,896) 6,021,433
ENDING FUND BALANCES (DEFICIT) ($106,896) $1,945,951
150
REGIONAL
TRANSPORTATION IMPACT FEES MEASURE K PARKS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $36,740 $259,606 $222,866 $17,461 $107,883 $90,422 $20,924 $104,667 $83,743 5,909,000 2,012,700 (3,896,300)
2,774,000 2,264,002 (509,998) 3,314,710 3,587,446 272,736 22 2,810,740 2,523,610 (287,130) 5,926,461 2,120,583 (3,805,878) 3,335,634 3,692,113 356,479 501,310 421,674 79,636
172,000 172,000
8,371 (8,371) 23,300 23,298 2
6,178,377 3,372,362 2,806,015 16,601,240 483,757 16,117,483 82,500 82,500 6,178,377 3,380,733 2,797,644 17,125,850 928,729 16,197,121 254,500 172,000 82,500 (3,367,637) (857,123) 2,510,514 (11,199,389) 1,191,854 12,391,243 3,081,134 3,520,113 438,979 (2,681,519) (2,681,519)
(2,681,519) (2,681,519)
($3,367,637) (857,123) $2,510,514 ($11,199,389) 1,191,854 $12,391,243 $3,081,134 838,594 ($2,242,540) 19,004,726 10,010,393 14,054,417
$18,147,603 $11,202,247 $14,893,011
(Continued)
151
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, 2023
GOVERNMENT
BUILDING FACILITIES FLOOD PROTECTION
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits $5,532,000 $5,081,826 ($450,174)
Use of money and property 74,771 307,847 233,076 $9,765 $9,765 Revenue from other agencies
Charges for current services $269,000 (269,000)
Other revenue
Total Revenues 5,606,771 5,389,673 (217,098) 269,000 9,765 (259,235)
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation
Streets and highways
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 5,606,771 5,389,673 (217,098) 269,000 9,765 (259,235)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,438,831) (2,438,831)
Issuance of SBITA
Total Other Financing Sources (Uses) (2,438,831) (2,438,831) NET CHANGE IN FUND BALANCES $5,606,771 2,950,842 ($2,655,929) $269,000 9,765 ($259,235) BEGINNING FUND BALANCES 29,834,641 (3,171)
ENDING FUND BALANCES (DEFICIT) $32,785,483 $6,594
152
REDEVELOPMENT BOND PROJECTS FIRE FACILITIES FEE NEIGHBORHOOD PARKS IN LIEU FEE Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,713,000 $1,152,790 ($560,210)
$20,612 $1,298,489 $1,277,877 34,305 34,305 $21,437 $21,437 $647,000 1,318,549 671,549
20,612 1,298,489 1,277,877 1,713,000 1,187,095 (525,905) 647,000 1,339,986 692,986 10,323,240 102,913 10,220,327 23,054 (23,054)
10,323,240 102,913 10,220,327 23,054 (23,054)
(10,302,628) 1,195,576 11,498,204 1,713,000 1,187,095 (525,905) 647,000 1,316,932 669,932 2,438,831 2,438,831 2,681,519 2,681,519
2,438,831 2,438,831 2,681,519 2,681,519
($10,302,628) 1,195,576 $11,498,204 $1,713,000 3,625,926 $1,912,926 $647,000 3,998,451 $3,351,451 6,468,661
$7,664,237 $3,625,926 $3,998,451
(Continued)
153
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, 2023
GAS TAX SB1
Variance
Positive
Budget Actual (Negative)
REVENUES
Sales taxes
Licenses and permits
Use of money and property
Revenue from other agencies $1,861,704 $1,938,477 $76,773 Charges for current services
Other revenue
Total Revenues 1,861,704 1,938,477 76,773
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation
Streets and highways
Capital outlay 50,276 47,655 2,621
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 50,276 47,655 2,621
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,811,428 1,890,822 79,394
OTHER FINANCING SOURCES (USES)
Transfers in 3,833,526 3,833,526
Transfers out
Issuance of SBITA
Total Other Financing Sources (Uses) 3,833,526 3,833,526 NET CHANGE IN FUND BALANCES $1,811,428 5,724,348 $3,912,920
BEGINNING FUND BALANCES
ENDING FUND BALANCES (DEFICIT) $5,724,348
154
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.
155
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
Payroll Tax
Benefit
Vehicle Equipment Allocation Insurance Total
ASSETS
Current Assets:
Cash and investments $1,361,879 $3,141,189 $16,922,793 $4,740,263 $26,166,124 Accounts receivable 8,089 8,089
Employee notes receivable 41,054 41,054
Total Current Assets 1,361,879 3,141,189 16,971,936 4,740,263 26,215,267 Non-Current Assets:
Capital assets not being depreciated 34,162 29,577 63,739 Capital assets (net of
accumulated depreciation) 188,464 1,277,365 1,465,829
Total Non-Current Assets 222,626 1,306,942 1,529,568
Total Assets 1,584,505 4,448,131 16,971,936 4,740,263 27,744,835
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 95,556 887,346 211,328 1,194,230 Deferred outflows related to OPEB 51,233 20,176 71,409
Total Deferred Outflows of Resources 95,556 938,579 231,504 1,265,639
LIABILITIES
Current Liabilities:
Accounts payable 65,043 323,764 40,155 137,339 566,301
Accrued liabilities 4,932,360 4,932,360
Refundable deposits 808 808
Unearned revenue 5,048,239 5,048,239
Interest payable 10,870 10,870
Compensated absences 4,503,471 4,503,471
Estimated claims liability 1,566,296 1,566,296
Lease liability 1,564 1,564
Subscription liability 229,149 229,149
Total Current Liabilities 65,043 565,347 14,524,225 1,704,443 16,859,058 Long-term Liabilities:
Compensated absences 3,002,315 3,002,315
Estimated claims liability 49,346 49,346
Net pension liability 223,073 2,805,626 744,857 3,773,556 Total OPEB Liability 864,261 249,197 1,113,458
Lease liability 3,154 3,154
Subscription liability 739,252 739,252
Total Long-Term Liabilities 223,073 4,412,293 3,002,315 1,043,400 8,681,081 Total Liabilities 288,116 4,977,640 17,526,540 2,747,843 25,540,139
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to OPEB 94,659 32,880 127,539
Total Deferred Inflows of Resources 94,659 32,880 127,539
NET POSITION
Investment in capital assets 222,626 333,823 556,449
Unrestricted 1,169,319 (19,412) (554,604) 2,191,044 2,786,347 Total Net Position $1,391,945 $314,411 ($554,604) $2,191,044 $3,342,796 156
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Payroll Tax
Benefit
Vehicle Equipment Allocation Insurance Total
OPERATING REVENUES
Charges for services $1,246,000 $4,767,000 $6,013,000
Insurance premium contribution from other funds $5,024,137 5,024,137 Miscellaneous 451,000 85,746 536,746
Total Operating Revenues 1,246,000 5,218,000 5,109,883 11,573,883
OPERATING EXPENSES
Personnel services 412,279 1,946,105 $677,900 429,305 3,465,589 Contractual services 22,724 47,436 4,105 74,265
Supplies 441,140 21,946 463,086
Utilities 273,800 6,520 280,320
Repairs and maintenance 970,761 970,761
Interdepartmental 120,000 280,000 33,000 433,000
Insurance 7,400 56,000 5,101,428 5,164,828
Claims 297,965 297,965
Depreciation 144,626 391,588 536,214
Miscellaneous 25,002 42,742 67,744
Total Operating Expenses 684,305 4,407,120 725,336 5,937,011 11,753,772 Total Operating Income (Loss) 561,695 810,880 (725,336) (827,128) (179,889)
NONOPERATING REVENUES (EXPENSES)
Interest income 31,108 108,323 12,413 151,844
Interest expense (27,791) (27,791)
Gain on sale of capital assets 115,469 115,469
Total Nonoperating Revenues (Expenses) 115,469 3,317 108,323 12,413 239,522 Change in Net Position 677,164 814,197 (617,013) (814,715) 59,633 BEGINNING NET POSITION 714,781 (499,786) 62,409 3,005,759 3,283,163 ENDING NET POSITION $1,391,945 $314,411 ($554,604) $2,191,044 $3,342,796 157
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Payroll Tax
Benefit
Vehicle Equipment Allocation Insurance Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $1,246,000 $5,218,000 $80,474,636 $5,109,883 $92,048,519 Payments to suppliers (99,996) (2,048,583) (55,573) (5,144,479) (7,348,631) Payments to or on behalf of employees (284,762) (1,823,993) (79,355,912) (378,613) (81,843,280) Employee notes receivable issued (42,329) (42,329)
Receipts from employee notes receivable 30,408 30,408
Claims paid (191,425) (191,425)
Cash Flows from (used by) Operating Activities 861,242 1,345,424 1,051,230 (604,634) 2,653,262
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (87,382) (82,696) (170,078) Proceeds from sale of capital assets 115,469 115,469
Lease liability - principal payment (1,554) (1,554)
Subscription liability - principal payment (235,264) (235,264) Lease and subscription liability - interest (16,921) (16,921) Cash Flows from (used by) Capital and Related
Financing Activities 28,087 (336,435) (308,348)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 31,108 108,323 12,413 151,844
Cash Flows from Investing Activities 31,108 108,323 12,413 151,844 Net Cash Flows 889,329 1,040,097 1,159,553 (592,221) 2,496,758 Cash and investments at beginning of period 472,550 2,101,092 15,763,240 5,332,484 23,669,366 Cash and investments at end of period $1,361,879 $3,141,189 $16,922,793 $4,740,263 $26,166,124 Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss) $561,695 $810,880 ($725,336) ($827,128) ($179,889) Adjustments to reconcile operating income to net cash flows from operating activities:
Depreciation 144,626 391,588 536,214
Change in assets and liabilities:
Receivables, net (2,878) (2,878)
Related party notes receivable (11,921) (11,921)
Accounts and other payables 27,404 20,844 (8,137) 66,950 107,061 Accrued liabilities (4) 877,826 (1,688) 876,134
Unearned revenue 266,811 266,811
Compensated absences 654,865 654,865
Claims liability 106,540 106,540
Net pension liability, deferred outflows and inflows 127,517 111,246 47,070 285,833 Total OPEB liability, deferred outflows and inflows 10,870 3,622 14,492 Cash Flows from (used by) Operating Activities $861,242 $1,345,424 $1,051,230 ($604,634) $2,653,262 158
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. Direct and Overlapping Property Tax Rates
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 Amended 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 159
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 and Capital Assets Statistics by Function/Program Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
160
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CITY OF MANTECA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
June 30,
2014 2015(A) 2016 2017 2018(B)
Governmental activities
Net investment in capital assets $271,754,541 $278,800,432 $282,954,575 $311,611,351 $327,232,512 Restricted 104,193,296 108,825,262 139,014,904 139,177,788 153,222,783 Unrestricted 19,495,181 (41,846,484) (42,549,501) (35,156,678) (54,265,195) Total governmental activities net position $395,443,018 $345,779,210 $379,419,978 $415,632,461 $426,190,100 Business-type activities
Net investment in capital assets $132,768,445 $136,876,673 $144,968,629 $136,859,563 $157,529,677 Unrestricted 54,770,104 40,706,859 38,202,656 51,856,903 43,293,291 Total business-type activities net position $187,538,549 $177,583,532 $183,171,285 $188,716,466 $200,822,968 Primary government
Net investment in capital assets $404,522,986 $415,677,105 $427,923,204 $448,470,914 $484,762,189 Restricted 104,193,296 108,825,262 139,014,904 139,177,788 153,222,783 Unrestricted 74,265,285 (1,139,625) (4,346,845) 16,700,225 (10,971,904) Total primary government net position $582,981,567 $523,362,742 $562,591,263 $604,348,927 $627,013,068 (A) The City implemented the provisions of GASB Statement 68 in fiscal year 2015. Amounts prior to 2015 have not been restated.
(B) 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 162
2019 2020 2021 2022 2023
$346,055,728 $395,180,359 $414,565,642 $422,119,848 $439,385,476 159,370,865 149,336,987 173,389,648 197,202,912 217,804,065 (54,138,733) (62,776,206) (63,375,920) (67,239,259) (53,591,717) $451,287,860 $481,741,140 $524,579,370 $552,083,501 $603,597,824 $168,685,323 $193,144,500 $212,888,678 $220,695,835 $222,479,874 52,128,274 44,732,619 53,979,732 61,562,129 73,808,452
$220,813,597 $237,877,119 $266,868,410 $282,257,964 $296,288,326 $514,741,051 $588,324,859 $627,454,320 $642,815,683 $661,865,350 159,370,865 149,336,987 173,389,648 197,202,912 217,804,065 (2,010,459) (18,043,587) (9,396,188) (5,677,130) 20,216,735 $672,101,457 $719,618,259 $791,447,780 $834,341,465 $899,886,150 163
CITY OF MANTECA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015(1) 2016 2017 2018(2)
Expenses:
Governmental Activities:
General Government $3,662,065 $3,312,873 $3,629,365 $3,483,457 $5,906,891 Community Development 4,811,707 4,987,786 6,616,224 6,196,786 9,669,910 Public Safety 23,663,325 25,166,890 25,193,524 22,357,675 34,883,973 Library 99,369 114,291 118,809 124,185 120,222
Public Works 4,166,837 5,094,875 4,843,276 5,274,495 7,091,236 Parks and Recreation 7,083,257 7,403,446 8,331,503 9,295,263 10,651,329 Streets and Highways 8,359,402 7,969,409 10,856,381 9,817,010 8,850,328 Interest and Fiscal Charges 105,935 87,096 101,562 89,384 84,784 Total Governmental Activities Expenses 51,951,897 54,136,666 59,690,644 56,638,255 77,258,673 Business-Type Activities:
Water 13,936,206 14,009,670 14,996,267 16,753,545 17,520,196 Sewer 13,720,540 13,853,066 14,274,230 22,082,085 16,478,268 Solid Waste 9,591,309 9,900,313 10,566,029 12,126,537 11,491,357 Golf 1,197,545 1,154,179 1,178,770 1,347,568 1,121,928
Transit
Total Business-Type Activities Expenses 38,445,600 38,917,228 41,015,296 52,309,735 46,611,749 Total Primary Government Expenses $90,397,497 $93,053,894 $100,705,940 $108,947,990 $123,870,422 Program Revenues:
Governmental Activities:
Charges for Services:
General Government $3,482,110 $4,513,841 $4,337,680 $5,136,836 $5,994,217 Community Development 2,263,202 2,575,570 2,877,168 4,624,314 7,306,692 Public Safety 1,380,990 1,621,244 1,360,473 1,542,872 1,874,561 Public Works 177,929 41,889 183,422 273,903 288,452
Parks and Recreation 2,373,422 2,263,443 2,772,184 3,458,096 3,337,139 Streets and Highways
Operating Grants and Contributions 7,862,956 6,991,694 6,085,529 6,698,385 8,695,800 Capital Grants and Contributions 20,231,150 20,220,600 41,118,815 33,113,697 33,768,730 Total Government Activities Program Revenues 37,771,759 38,228,281 58,735,271 54,848,103 61,265,591 Business-Type Activities:
Charges for Services:
Water 14,300,665 14,240,103 13,901,722 15,396,799 17,841,323 Sewer 18,095,530 19,270,009 19,969,107 22,953,356 26,572,846 Solid Waste 8,443,817 8,827,211 9,131,837 10,483,066 12,593,379 Golf 1,040,365 1,009,100 978,427 908,639 1,193,170
Transit
Operating Grants and Contributions
Capital Grants and Contributions 1,447,128 2,401,413 935,948 6,660,347 4,487,162 Total Business-Type Activities Program Revenue 43,327,505 45,747,836 44,917,041 56,402,207 62,687,880 Total Primary Government Program Revenues $81,099,264 $83,976,117 $103,652,312 $111,250,310 $123,953,471 Net (Expense)/Revenue:
Governmental Activities ($14,180,138) ($15,908,385) ($955,373) ($1,790,152) ($15,993,082) Business-Type Activities 4,881,905 6,830,608 3,901,745 4,092,472 16,076,131 Total Primary Government Net Expense ($9,298,233) ($9,077,777) $2,946,372 $2,302,320 $83,049 General Revenues and Other
Changes in Net Position:
Governmental Activities:
Taxes:
Property Taxes $11,051,871 $13,054,963 $12,633,502 $14,476,480 $15,511,281 Sales Taxes 12,361,731 13,271,312 14,552,582 17,550,799 18,971,755 Other Taxes 4,792,936 5,109,652 5,006,171 3,012,505 3,325,769 Interest Income 897,034 744,569 1,635,220 850,024 1,175,293 Other Revenue 775,632 1,484,667 937,712 1,327,689 1,867,047 Developer Contributions 40,000 69,231 72,154 326,216 209,612 Gain From Sale of Capital Assets
Transfers, net (1,606,375) (241,200) (300,488) (468,073) Special Item 759,410
Total Government Activities 29,919,204 32,128,019 34,596,141 38,002,635 40,592,684 Business-Type Activities:
Interest Income 617,958 606,799 1,167,858 472,012 810,465 Other Revenue 532,344 462,941 276,950 680,209 389,176
Gain From Sale of Capital Assets
Transfers, net 1,606,375 241,200 300,488 468,073
Total Business-Type Activities 1,150,302 2,676,115 1,686,008 1,452,709 1,667,714 Total Primary Government $31,069,506 $34,804,134 $36,282,149 $39,455,344 $42,260,398 Change in Net Position:
Governmental Activities $15,739,066 $16,219,634 $33,640,768 $36,212,483 $24,599,602 Business-Type Activities 6,032,207 9,506,723 5,587,753 5,545,181 17,743,845 Total Primary Government $21,771,273 $25,726,357 $39,228,521 $41,757,664 $42,343,447 (1) The City implemented the provisions of GASB Statement 68 in fiscal year 2015. Amounts prior to 2015 have not been restated. (2) The City implemented the provisions of GASB Statement 75 in fiscal year 2018. Amounts prior to 2018 have not been restated. (3) The Transit Enterprise Fund activities were previously reported in governmental activities. 164
2019 2020 2021 2022 2023
$6,053,229 $7,054,126 $9,079,274 $5,493,756 $10,150,611 7,701,286 8,242,158 10,364,833 15,021,715 14,921,624
36,204,202 42,395,447 40,640,436 54,117,359 36,874,290
134,006 145,310 87,185 124,342 146,067
8,645,927 7,137,403 9,367,355 12,812,977 17,004,659
10,125,867 11,710,512 9,047,085 6,821,241 6,080,603
11,513,804 10,268,116 11,463,230 12,042,148 12,874,297
80,021 129,403 163,409 85,578 89,385
80,458,342 87,082,475 90,212,807 106,519,116 98,141,536 17,818,593 18,967,868 26,674,047 19,513,996 20,449,549
17,479,631 18,596,722 19,697,865 21,604,463 22,408,854
12,622,724 12,752,503 12,884,734 15,402,035 16,728,245
1,284,914 1,327,641 1,643,383 1,756,328 1,636,173
(3) 3,377,255
49,205,862 51,644,734 60,900,029 58,276,822 64,600,076
$129,664,204 $138,727,209 $151,112,836 $164,795,938 $162,741,612 $6,266,735 $6,038,904 $6,172,866 $6,179,781 $6,749,391
7,640,377 6,545,381 7,062,924 8,921,025 6,254,666
3,232,381 1,580,738 2,969,457 3,193,265 2,513,921
398,437 239,053 1,056,285 996,377 2,542,957
4,247,649 4,173,698 3,846,159 4,741,365 4,971,913
2,925,863
9,575,549 9,952,561 9,597,652 13,069,036 8,725,900
26,345,923 38,154,802 50,590,297 39,061,963 52,366,303
60,632,914 66,685,137 81,295,640 76,162,812 84,125,051
16,620,397 17,576,060 21,103,821 21,816,772 18,786,751
26,305,512 22,510,081 24,757,696 26,024,468 25,917,480
13,429,983 13,875,762 14,624,464 15,730,829 16,288,404
1,112,976 1,044,323 1,689,785 1,642,464 1,525,393
105,822
23,126,463 6,000,000 3,535,010
3,577,598 10,233,700 4,401,716 2,380,360 4,229,461
61,046,466 65,239,926 89,703,945 73,594,893 70,388,321
$121,679,380 $131,925,063 $170,999,585 $149,757,705 $154,513,372 ($19,825,428) ($20,397,338) ($8,917,167) ($30,356,304) ($14,016,485) 11,840,604 13,595,192 28,803,916 15,318,071 5,788,245
($7,984,824) ($6,802,146) $19,886,749 ($15,038,233) ($8,228,240) $17,158,387 $19,385,771 $21,126,114 $21,443,545 $25,660,666 20,298,214 22,292,924 23,509,852 28,438,483 29,324,167
3,761,139 3,434,933 4,144,750 9,577,052 10,218,719
5,026,389 4,501,680 1,012,967 (3,237,386) 4,531,826
848,738 215,694 598,244 907,892 1,408,087
350,696 1,144,141 1,268,286 1,173,042 368,332
1,675,000 457,360 29,762
(4,195,375) (581,885) 95,184 (471,955) (5,984,989)
44,923,188 50,850,618 51,755,397 57,860,435 65,526,808
3,528,311 2,679,191 125,791 (1,754,659) 1,890,954
426,339 207,254 154,268 1,354,187 366,174
2,500
4,195,375 581,885 (95,184) 471,955 5,984,989
8,150,025 3,468,330 187,375 71,483 8,242,117
$53,073,213 $54,318,948 $51,942,772 $57,931,918 $73,768,925 $25,097,760 $30,453,280 $42,838,230 $27,504,131 $51,510,323 19,990,629 17,063,522 28,991,291 15,389,554 14,030,362
$45,088,389 $47,516,802 $71,829,521 $42,893,685 $65,540,685 165
CITY OF MANTECA
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
June 30,
2014 2015 2016 2017 2018
General Fund:
Nonspendable $1,926,248 $227,542 $1,140,121 $1,236,685 $1,174,248 Restricted 496,896 493,423
Assigned 22,092 7,921,152 10,860,353 12,167,528 12,242,789 Unassigned 17,736,555 15,792,889 14,362,743 15,313,223 17,864,670 Total General Fund $19,684,895 $23,941,583 $26,363,217 $29,214,332 $31,775,130 All Other Governmental Funds:
Nonspendable $367,368
Restricted $76,888,357 $80,121,549 109,084,616 $108,951,883 $121,695,103 Committed 443,166 542,435 566,659 513,754 315,126
Assigned 4,364,455 5,852,064 6,873,122 7,593,864 8,993,799 Unassigned
Total All Other Governmental Funds $81,695,978 $86,516,048 $116,891,765 $117,059,501 $131,004,028 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$50
$100
$150
$200
$250
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Nonspendable Restricted Committed Assigned Unassigned
166
2019 2020 2021 2022 2023
$1,167,635 $1,081,780 $1,081,780 $1,081,780 $1,161,780
497,968 468,942 463,902 455,838 448,821
22,234,205 22,845,194 22,693,202 26,188,105 28,411,565
5,365,691 9,498,731 12,784,135 9,331,508 10,485,964
$29,265,499 $33,894,647 $37,023,019 $37,057,231 $40,508,130 (a) $12,640
$130,317,107 $114,589,894 $135,284,222 160,541,696 $184,317,805 128,901 151,617 292,905
6,595,121 2,464,870 2,951,856 726,934
(217,246) (627,731) (614,292) (7,234,011)
$137,041,129 $116,989,135 $137,608,347 $160,666,978 $177,376,699 (a) 167
CITY OF MANTECA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018
Revenues
Taxes $28,753,641 $32,094,372 $32,947,680 $35,923,482 $38,836,074 Licenses and permits 3,731,526 4,662,438 5,500,733 $7,297,736 $9,361,925 Fines and forfeitures 337,288 283,690 251,348 242,370 274,079 Use of money and property 775,017 657,340 1,524,560 887,642 1,178,617 Revenue from other agencies 20,324,768 10,759,079 36,458,520 8,181,175 9,979,594 Charges for services 9,755,068 11,740,989 12,393,596 16,563,471 24,833,693 Other revenue 1,010,619 1,136,856 840,611 1,310,923 978,783 Total Revenues 64,687,927 61,334,764 89,917,048 70,406,799 85,442,765 Expenditures
Current:
General government 2,585,212 3,179,851 3,426,132 4,213,380 3,908,666 Community development 2,076,066 2,186,882 3,969,714 3,427,208 6,062,166 Public safety 22,661,015 24,376,036 26,515,201 28,149,443 29,913,998 Library 104,939 115,182 119,733 124,621 116,993
Public works 3,074,652 2,936,956 2,943,548 3,437,585 4,235,394 Parks and recreation 5,303,386 5,820,120 6,447,370 6,811,941 7,619,147 Streets and highways 1,903,753 1,944,873 3,657,370 3,911,368 2,406,785 Nondepartmental 2,602,469 2,745,157 2,620,108 2,853,407 3,087,315 Capital outlay 5,963,377 7,098,897 6,582,238 13,440,297 11,593,401 Debt service:
Principal repayment 450,222 310,581 277,308 129,708 134,307 Interest and fiscal charges 105,935 87,096 101,562 89,384 84,784 Total Expenditures 46,831,026 50,801,631 56,660,284 66,588,342 69,162,956 Excess (deficiency) of revenues over
(under) expenditures 17,856,901 10,533,133 33,256,764 3,818,457 16,279,809 Other Financing Sources (Uses)
Transfers in 2,015,513 431,526 4,773,733 346,972 753,989 Transfers (out) (2,180,663) (2,037,901) (5,814,933) (1,147,460) (1,117,564) Issuance of long-term debt 150,000 580,000
Issuance of SBITA
Proceeds from sale of property 12,506 1,787 882 589,091 Total other financing sources (uses) (152,644) (1,456,375) (459,413) (799,606) 225,516 Net Change in Fund Balances $17,704,257 $9,076,758 $32,797,351 $3,018,851 $16,505,325 Debt service as a percentage of
noncapital expenditures 1.4% 0.9% 0.7% 0.4% 0.4%
168
2019 2020 2021 2022 2023
$41,952,454 $46,095,783 $49,951,360 $60,957,368 $66,308,748 7,741,377 8,434,426 11,329,285 12,795,149 12,139,086
495,618 592,613 478,460 468,601 442,332
4,702,952 4,322,549 906,839 (3,083,699) 4,379,982
10,055,955 9,472,396 16,804,068 17,348,818 15,927,169
25,269,605 25,323,831 35,093,633 37,963,370 33,373,777
792,282 547,619 589,850 852,914 1,544,624
91,010,243 94,789,217 115,153,495 127,302,521 134,115,718 4,489,437 5,257,415 6,546,850 8,075,381 9,924,451
4,642,422 5,057,407 5,547,248 5,042,477 4,378,840
32,607,974 36,853,715 38,759,432 46,155,673 45,891,215
128,069 130,899 75,421 135,760 153,898
4,805,032 5,093,797 7,738,420 13,356,878 12,118,575
8,074,112 8,142,074 6,351,451 4,623,634 3,742,659
6,976,028 4,553,139 4,278,286 5,153,928 3,953,457
2,996,435 2,624,979 3,828,297 9,770,845 9,351,502
19,115,918 41,854,768 17,306,911 11,343,816 23,794,169
139,070 144,002 115,961 157,176 255,226
80,021 129,403 163,409 85,391 87,780
84,054,518 109,841,598 90,711,686 103,900,959 113,651,772 6,955,725 (15,052,381) 24,441,809 23,401,562 20,463,946 217,000 540,000 496,000 845,514 10,981,244
(4,645,255) (1,451,875) (1,190,225) (1,272,327) (11,411,044) 20,832
58,974
1,000,000 541,410 97,262 67,500
(3,428,255) (370,465) (694,225) (308,719) (303,326)
$3,527,470 ($15,422,846) $23,747,584 $23,092,843 $20,160,620
0.3% 0.4% 0.4% 0.3% 0.4%
169
Licenses Revenue Use of Charges Fines, Forfeits
Fiscal and From Other Money and for and Other
Year Taxes Permits Agencies Property Services Revenue Total 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 2022 60,957,368 12,795,149 17,348,818 (3,083,699) 37,963,370 1,321,515 127,302,521 2023 66,308,748 12,139,086 15,927,169 4,379,982 33,373,777 1,986,956 134,115,718 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
$10
$20
$30
$40
$50
$60
$70
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Taxes Licenses and Permits
Revenue From Other Agencies Use of Money and Property
Charges for Services Fines, Forfeits and Other Revenue
170
Fiscal General Public Public Parks and Capital Debt
Year Government (a) Safety Works Recreation Improvement (b) Service Total 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 2022 23,024,463 46,155,673 13,356,878 4,623,634 16,497,744 242,567 103,900,959 2023 23,808,691 45,891,215 12,118,575 3,742,659 27,747,626 343,006 113,651,772 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
General Government (a) Public Safety Public Works
Parks and Recreation Capital Improvement (b) Debt Service 171
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) 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% 2022 2,937,636 6,966,264 73,947 9,977,847 (171,388) 1,190 9,807,649 173,838 9,981,487 9,981,487 1% 2023 3,201,023 7,720,270 102,198 11,023,491 (177,325) 1,190 10,847,356 205,710 11,053,066 11,053,066 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
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Unsecured Property Secured Property
172
CITY OF MANTECA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal Year
Total Direct
Rate (4)
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 2022 1.00000 0.10780 0.04140 0.01630 0.02440 1.18990 0.14408 0.13968 2023 1.00000 0.09980 0.03840 0.01440 0.02340 1.17600 0.14408 0.13896 Notes:
Data Source:
San Joaquin
Delta College
District
Yosemite
College
Total Direct
and Overlapping
Tax Rates (2)
San Joaquin County Assessor 2013/14-2022/23 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) 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
2014
2015
2016
2017
2018
Per Hundred $
0 0.2
0.4 0.6
0.8 1
1.2 1.4
1.6 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 173
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 1.75%
Centerpoint Properties Trust Industrial 1.56% Industrial 0.47% Valencia Place Apartments LLC Apartments 0.65%
Anson Logistics Assets LLC Warehouse 0.54%
Tesoro Apartments LLC Apartments 0.47%
Manteca Lifestyle Center LLC Shopping Center 0.47% Shopping Center 1.72% DP & DK Investment Inc. Shopping Center 0.47%
LLH MRS Master RE LLC Cold Storage 0.43%
Paseo Apartments LLC Apartments 0.42% Apartments 0.57%
Tilden-Laurel Glen LLC Apartments 0.33%
Pulte Home Corp Residential Development 0.92%
Millard Refrigerated Services Inc. Cold Storage 0.91%
Pivotal 650 California St LLC Shopping Center 0.74%
Prologis Warehouse 0.53%
Edward J & Dolores M Cardoza Trust Shopping Center 0.49% Duke Realty LP Industrial 0.47%
Costco Wholesale Corporation Commercial Store 0.47%
Total 7.09% 7.29%
Source: California Municipal Statistics
2021-2022 2012-2013
174
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 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% 2022 21,443,545 21,443,545 100.00% 0 21,443,545 100.00% 2023 25,660,666 25,660,666 100.00% 0 25,660,666 100.00% 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
$30.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Tax Levy (a) (b) Tax Collections
175
2022-23 Total Local Secured
Assessed Valuation $934,864,946
Project Area No. 1
Property Owner Primary Land Use
2022-23 Assessed
Valuation
% Total of
Assessed
Valuation
1 Tilden-Laurel Glen LLC Apartments $36,606,562 3.92%
2 Stonegate Apartments LLC Apartments 24,917,009 2.67%
3 Doctors Hospital of Manteca Inc. Hospital 23,424,074 2.51% 4 Edward J. and Dolores M. Cardoza Trust Shopping Center 17,565,877 1.88% 5 VFT Properties LLC Apartments 14,658,598 1.57%
6 B.R. Funsten & Co. Corp. Warehouse 13,829,834 1.48%
7 Wal Mart Realty Company Commercial Stores 13,807,960 1.48% 8 MP Core Sienna Place LLC Apartments 11,495,064 1.23%
9 Manteca Self Storage Owner LP Public Storage 10,251,000 1.10% 10 Khatri Brothers Partnership Hotel/Motel 9,945,399 1.06% 11 North Main Storage LLC Public Storage 6,937,837 0.74% 13 Brocchini Family Partnership Commercial 6,155,314 0.66% 12 KDDC Properties LLC Commercial 5,804,101 0.62%
14 Store Master Funding XVI Bowling Alley & Sports Bar 5,676,361 0.61% 15 JEN California 19 LLC Commercial Land 5,654,831 0.60% 16 Eckert Engineering Corp. Warehouse 5,478,712 0.59%
17 MN Gianni LLC Commercial 5,449,051 0.58%
18 Hensley Investment Company Office Building 5,000,000 0.53% 19 SFP B Ltd. Ptp. Commercial 4,765,543 0.51%
20 A.E. Kline, Trust Office Building 4,646,446 0.50%
$232,069,573 24.84%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 1
TOP TWENTY ASSESSED VALUES
June 30, 2023
176
2022-23 Total Local Secured
Assessed Valuation $1,751,205,993
Project Area No. 2
Property Owner Primary Land Use
2022-23 Assessed
Valuation
% of Total
Assessed
Valuation
1 DP & DK Investments Inc. Shopping Center $51,507,738 2.94% 2 LLH MRS Master RE LLC Cold Storage 47,645,332 2.72%
3 Colfin 2019 2E Industrial Owner Warehouse 32,586,532 1.86% 4 Prologis Warehouse 31,388,887 1.79%
5 Duke Realty LP Warehouse 27,849,389 1.59%
6 Costco Wholesale Corporation Commercial Store 25,704,134 1.47% 7 Yip Holdings Five LLC Shopping Center 14,922,624 0.85% 8 Argo Manteca LLC Shopping Center 14,619,894 0.83%
9 Manteca Associates LP Light Industrial 13,920,225 0.79% 10 Target Corp. Shopping Center 13,830,768 0.79%
11 HD Development of Maryland Inc. Commercial Store 12,538,681 0.72% 12 Manteca Corners LLC Shopping Center 11,878,315 0.68% 13 Kohl's Department Stores Inc. Shopping Center 11,500,000 0.66% 14 Cranbrook Realty Invest Fund LP Warehouse 11,166,748 0.64% 15 JEN California 23 LLC Residential Development 10,234,310 0.58% 16 Nestle Dreyer's Ice Cream Co. Cold Storage 10,084,098 0.58% 17 Brocchini Family Partnership LP Office Building 10,037,891 0.57% 18 Daniel M. & Belinda A. Sarich, Trust Light Industrial 10,011,854 0.57% 19 277 Commerce Ave. LLC Shopping Center 8,750,000 0.50% 20 VFT Family Partnership LP Apartments 8,684,819 0.50% $378,862,239 21.63%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 2
TOP TWENTY ASSESSED VALUES
June 30, 2023
177
2022-23 Total Local Secured
Assessed Valuation $24,425,080
2005 Merged Project Amended Area
Property Owner Primary Land Use
2022-23 Assessed
Valuation
% of Total
Assessed
Valuation
1 AGS Gasoline LLC Service Station $3,094,037 12.67%
2 Jaswant S. Pannu Commercial Land 1,018,591 4.17%
3 National San Joaquin LLC Assisted Living 979,037 4.01% 4 Major Singh Brar Commercial Land 940,000 3.85%
5 Chattarpal S. Pabla Multi-Family Residential 805,000 3.30% 6 Andrew & Ashley Candelario Residential 783,229 3.21%
7 David L. Peters Truck Terminal 706,973 2.89%
8 Gian S and Ghangu Sandeep Bhangu Residential 653,093 2.67% 9 MPVCA Manteca LLC Commercial Land 647,311 2.65%
10 Natalyn J. and Thomas E. Bergman, Jr. Residential 643,597 2.63% 11 James H. Zimmerman Residential 642,282 2.63%
12 Gustavo and Marthea Ramirez Residential 637,500 2.61% 13 Jasvir and Sarbjit K. Singh Trust Light Industrial 632,036 2.59% 14 Robert L. and Dorothy F. Mack Residential 578,337 2.37% 15 Alfredo Valenzuela Felix Residential 458,601 1.88%
16 Hiway Farm LLC Commercial Land 406,133 1.66%
17 Ramirez Arturo Vargas Residential 397,000 1.63%
18 Kyung Han and Mi Jwa Yoon Residential 394,808 1.62%
19 Ranjit and Jaswinder Khangura Residential 386,000 1.58% 20 Nicolas and Heather D. Hernandez Residential 383,572 1.57% $15,187,137 62.19%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT MERGED PROJECT AREA
TOP TWENTY ASSESSED VALUES
June 30, 2023
178
2022-23 Total Local Secured
Assessed Valuation $472,371,843
2004 Amended Area
Property Owner Primary Land Use
2022-23 Assessed
Valuation
% of Total
Assessed
Valuation
1 GWR Manteca LLC Water Park/Resort $193,450,538 40.95% 2 Valencia Place Apartments LLC Apartments 71,384,577 15.11% 3 Anson Logistics Assets LLC Warehouse 59,917,176 12.68% 4 Manteca Lifestyle Center LLC Shopping Center 51,837,397 10.97% 5 Big Box Property Owner A LLC Light Industrial 12,326,477 2.61% 6 DTST2 Holdings LLC RV Sales 11,995,940 2.54%
7 Cedar Real Estate Group IV LLC Truck Terminal 10,200,000 2.16% 8 Manteca Lodging LLC Shopping Center 9,857,423 2.09%
9 Andreetta Properties LP Food Processing 8,185,202 1.73% 10 JC Penney Properties Inc. Shopping Center 7,929,256 1.68% 11 Tesoro Commons LLC Residential Properties 4,080,000 0.86% 12 Manteca Truck Terminal LLC Industrial Land 2,333,616 0.49% 13 Ergonis Land Co. LP Light Industrial 2,319,866 0.49% 14 Plumrose USA Inc. Truck Terminal 2,250,000 0.48%
15 Jarnail Singh Kamboj Vacant 1,904,036 0.40%
16 JEN California 23 LLC Residential Properties 1,505,000 0.32% 17 Rajinder Aulakh Commercial Land 1,500,744 0.32%
18 SKV Holdings LLC Vacant 1,377,000 0.29%
19 Johnny R. Gibson Light Industrial 1,339,737 0.28%
20 John N. & Galatia Aretakis Residential Properties 1,020,953 0.22% $456,714,938 96.67%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT AMENDED MERGED PROJECT AREA
TOP TWENTY ASSESSED VALUES
June 30, 2023
179
CITY OF MANTECA
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(in thousands of dollars)
2013 2014 2015 2016 2017
Apparel Stores $38,644 $39,906 $42,537 $44,158 $46,781
General Merchandise 187,691 191,787 198,554 203,016 212,248 Food Stores 26,425 27,533 28,535 30,245 30,401
Eating and Drinking Places 91,574 98,018 107,809 116,177 125,661 Building Materials 107,576 109,006 113,578 121,128 128,925 Auto Dealers and Supplies 119,884 125,807 151,717 163,496 168,973 Service Stations 103,613 106,855 90,313 89,246 102,907
Other Retail Stores 124,666 125,611 128,152 130,676 126,974 All Other Outlets 181,589 213,270 226,773 245,295 263,859 Total $981,662 $1,037,793 $1,087,968 $1,143,437 $1,206,729 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. 180
2018 2019 2020 2021 2022
$50,143 $51,211 $38,668 $62,539 $62,144
214,730 220,108 213,182 262,639 297,348
31,540 32,195 38,458 37,431 39,132
130,613 140,213 131,768 177,421 196,009
129,723 135,369 138,684 162,761 174,245
179,318 179,014 188,657 238,976 227,734
122,935 130,431 111,817 165,463 209,413
126,018 126,131 134,618 171,905 184,931
294,936 322,087 333,889 452,350 510,963
$1,279,956 $1,336,759 $1,329,741 $1,731,485 $1,901,919
181
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
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 (a)
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
2021-22 1.00 0.50 0.50 6.25
2022-23 1.00 0.50 0.50 6.25
(a) On January 1, 2017, the State decreased the
the State Rate 0.25%
Source: California State Board of Equalization / California Department of Tax and Fee Administration
182
CITY OF MANTECA
PRINCIPAL SALES TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
IN ALPHABETICAL ORDER
Calendar Year 2022 Calendar Year 2013
A&A Gas & Food Mart Ahmeds Chevron
Amazon Com Services American Modular Systems
American Modular Systems Arco
Arco B. R. Funsten & Company
Arco AM PM Bass Pro Shops Outdoor World
Arco AM PM Cabral Chrysler Jeep Dodge Ram Fiat
B R Funsten & Company Chevron
Bass Pro Shops Outdoor World Costco
Cabral Chrysler Jeep Dodge Ram Fiat Country Kia
Chick Fil A Cruisers Manteca
Core & Main LP Global Hvac Distributors Inc.
Costco Home Depot
Country Kia J. M. Equipment Company
Cruisers Manteca J C Penney
Great Wolf Lodge Kmart
Home Depot Kohls
J. M. Equipment Company Manteca Arco
Living Spaces Furniture Manteca Ford
Manteca Ford Manteca Trailer & Camper
Manteca Trailer & Motorhome Quik Stop
Manteca Trailer & Motorhome Robert & Brune Co
Ross Ross
Target Save Mart
TJ Maxx Target
Walmart Supercenter Walmart Supercenter
Percent of fiscal year total paid by top 25 accounts:
53.24% 55.12%
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, TheHdL Companies 183
CITY OF MANTECA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Capital Lease Subscription
Year Leases Liabilities Liabilities Total
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
2022 $504,872 504,872
2023 1,305,330 $103,392 1,408,722
Business-Type Activities
Water Sewer Total Percentage
Fiscal Revenue Revenue Leases Primary of Personal Per
Year Bonds Bonds Liabilities Total Government Income (a) Capita (a) 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 2022 28,677,570 31,988,924 $34,666 60,701,160 61,206,032 2.47% 705 2023 26,929,255 30,149,830 22,701 57,101,786 58,510,508 2.16% 659 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. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Governmental Activities
184
CITY OF MANTECA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
2022-23 Assessed Valuation: $11,053,065,491
Total Debt City's Share of
JURISDICTION 6/30/2023 % Applicable (1) Debt 6/30/23
OVERLAPPING TAX AND ASSESSMENT DEBT
San Joaquin Delta Community College District $175,675,000 10.028% $17,616,689 Yosemite Community College District 253,266,478 0.317% 802,855 Manteca Unified School District 211,129,885 52.209% 110,228,802 Ripon Unified School District 28,130,970 7.220% 2,031,056 Manteca Unified School District Community Facilities District No. 1989-2 17,655,000 79.150% 13,973,933 Manteca Unified School District Community Facilities District No. 2000-3 19,085,000 100% 19,085,000 California Statewide Communities Development Authority CFD No. 2012-2 5,820,000 100% 5,820,000 California Statewide Communities Development Authority 1915 Act Bonds 51,323,272 100% 51,323,272 Reclamation District No 17 Assessment District 20,515,719 6.969% 1,429,740 TOTAL OVERLAPPING DEBT $782,601,324 $222,311,347
DIRECT AND OVERLAPPING GENERAL FUND DEBT
San Joaquin County Certificates of Participation $54,940,000 11.122% $6,110,427 Manteca Unified School District Certificates of Participation 13,979,000 52.209% 7,298,296 CITY OF MANTECA GENERAL FUND OBLIGATIONS 0 100.000% 0
Total Gross Direct and Overlapping General Fund Debt $68,919,000 13,408,723 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $13,408,723 (2) OVERLAPPING TAX INCREMENT DEBT: 87,500,000 100% $87,500,000 TOTAL DIRECT DEBT $0 (2)
TOTAL OVERLAPPING DEBT $323,220,070 (2)
COMBINED TOTAL DEBT $323,220,070 (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 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.92%
Total Direct Debt 0.00%
Combined Total Debt 2.92%
Ratios to Redevelopment Incremental Valuation ($2,883,077,176) Total Overlapping Tax Increment Debt 3.03%
Source: California Municipal Statistics, Inc.
185
CITY OF MANTECA
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2023
ASSESSED VALUATION:
Assessed Value $11,053,066,000
Add back: Exempt real property 0
Total Assessed Valuation $11,053,066,000
BONDED DEBT LIMIT (15.0% OF ASSESSED VALUE) (a) $1,657,959,900 AMOUNT OF DEBT SUBJECT TO LIMIT: 0
LEGAL BONDED DEBT MARGIN $1,657,959,900
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
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%
2022 1,497,223,050 0 1,497,223,050 0.00%
2023 1,657,959,900 0 1,657,959,900 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.
186
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 (a) Debt Service Principal Interest Total Coverage 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 2022 21,846,755 (17,204,712) 3,187,306 7,829,349 1,480,000 1,272,750 2,752,750 2.84 2023 18,828,384 (19,455,588) 4,905,189 4,277,985 1,555,000 1,196,875 2,751,875 1.55 Source: City of Manteca Annual Financial Statements
Note: (a) 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage
187
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 (a) Debt Service Principal Interest Total Coverage 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 2022 26,764,183 (20,033,066) 3,464,611 10,195,728 1,655,000 1,550,966 3,205,966 3.18 2023 26,115,040 (20,907,297) 5,553,416 10,761,159 1,755,000 1,482,266 3,237,266 3.32 Note (a) 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage
188
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
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 2022 14,926,936 (a) (b) 4,190,000 (a) 2,723,702 (a) 6,913,702 2.16 2023 1,427,520 (a) (b) 4,255,000 (a) 2,639,891 (a) 6,894,891 0.21 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
$16,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Incremental Revenue Debt Service Payment
189
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 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%
2021 86,859 2,473,733 28,480 7.3% 784,298 11.07%
2022 88,803 2,714,458 30,567 4.1% 786,145 11.30%
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%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate
8.00%
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
11.50%
12.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population as a % of County Population
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Personal Income (in thousands)
$20
$22
$24
$26
$28
$30
$32
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Per Capita Personal Income
190
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 710 1 0.8%
Tennant Sales and Service Co. 800 2 0.9%
Manteca Unified School District (a) 730 3 0.8% 2,107 1 2.9% Gardner Trucking Inc. 520 4 0.6% 357 4 0.5%
City of Manteca 492 5 0.6% 332 5 0.5%
Doctors Hospital of Manteca 399 6 0.4% 446 3 0.6%
Kaiser Permanente Medical Offices & Hospital 314 7 0.4% 625 2 0.9% Wal-Mart 307 8 0.3% 316 6 0.4%
COSTCO Wholesale #1031 307 8 0.3% 187 9 0.3%
A.M. Stephens Construction Co., Inc. 257 9 0.3%
C. Overaa & Co. 250 10 0.3%
Eckert Cold Storage 250 10 0.3% 250 7 0.3%
Home Depot 205 11 0.2% 143 12 0.2%
Give Every Child a Chance 183 12 0.2% 170 10 0.2%
Target Corp. 170 13 0.2% 165 10 0.2%
BASS Pro Outdoor World 150 14 0.2% 150 11 0.2%
Karma, Inc. (DBA Manteca Care & Rehab) 125 15 0.1% 225 8 0.3% Total Employees - Principal Employers 6,169 6.9% 5,473 7.5% Total City Population 88,803 72,880
Source: City of Manteca Community Development Department (Business License) (a) FY 2013-14 MUSD employees included the entire district; FY2022-23 includes only MUSD employees in the City of Manteca.
2022-23 2013-14
191
CITY OF MANTECA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 38.00 41.00 38.00 39.00 40.00 39.00 39.00 65.00 69.00 65.00 Public safety 130.00 132.00 147.00 152.00 151.00 159.00 159.00 162.00 158.00 165.00 Public works 34.00 37.00 35.00 36.00 41.00 44.00 44.00 30.00 27.00 62.00 Community development 12.00 16.00 16.00 21.00 24.00 25.00 25.00 19.00 20.00 20.00 Parks & recreation 31.00 32.00 34.00 36.00 37.00 38.00 38.00 36.00 35.00 32.00 Water 19.00 23.00 25.00 29.00 27.00 27.00 27.00 24.00 26.00 29.00 Wastewater 32.00 33.00 35.00 38.00 38.00 38.00 38.00 34.00 35.00 38.00 Solid Waste 36.00 37.00 37.00 36.00 37.00 37.00 37.00 36.00 38.00 40.00 Total 332.00 351.00 367.00 387.00 395.00 407.00 407.00 406.00 408.00 451.00 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
500.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FTE's
General government Public safety Public works
Community development Parks & recreation Water
Wastewater Solid Waste
192
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CITY OF MANTECA
OPERATING INDICATORS AND CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2014** 2015** 2016 2017 2018
Citizens 72,880 73,787 73,841 76,247 81,345
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 20.92 Sq Miles 20.92 Sq Miles 20.92 Sq Miles 21.45 Registered Voters 30,930 30,975 33,105 36,327 37,775
Building Permits Issued 2,134 3,027 3,418 3,565 4,312
Employees from Budget Document 332 351 367 0 0
Number of Stations 44444
Number of Reserve Personnel 25 25 22 20 24
Number of Sworn Fire Personnel * 40 41 49 60 48
Number of Calls Answered 5,854 6,252 6,682 7,132 7,579
Number of Stations 11111
Number of Police Officers 63 64 65 65 67
Number of Volunteers 115 94 87 62 71
Number of Support Personnel 23 24 29 33 33
Number of Calls Answered 33,885 35,036 42,717 43,229 42,114 Park Sites 5658656969
Acres of Parks 362 367 382 382 465
Senior Centers 11111
Swimming Pools 22222
Tennis Courts 88888
Pickle Ball Court
Number of Park/Golf Trees 7,600 7,600 7,600 7,600 7,600 Number of Street Trees 17,000 18,000 18,500 18,700 18,700 Acres of Golf Course 111 111 111 111 111
Public Libraries 11111
Landscape Maintenance Districts 2929292929
Benefit Area District 44444
Community Facility Districts 1 6 9 10 12
Miles of Streets 241 250 250 259 271
Number of Street Lights 4,856 5,143 5,405 5,443 5,603
Number of Meters 20,876 21,161 21,696 22,380 22,920
Miles of Water Mains 259 266 280 298 299
Average Daily Consumptions (Gal) 14.06 MGD 11.11 MGD 9.89 MGD 10.498 MGD 10.498 MGD Number of Connections 24,940 20,791 21,325 21,951 22,529 Miles of Sewer Lines 227 243 250 257 258
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 6.29 MGD 6 MGD 6.25 MGD 6.21 MGD 6.21 MGD Treatment Capacity 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD 9.87MGD Number of Accounts 20,399 20,879 21,411 22,080 22,641
Elementary Schools 20 23 23 20 20
High Schools 55555
Alternative Schools 33333
Adult Education 2 1 1 1 1
Charter School 1111
Teachers 1,094 1,019 1,041 1,092 1,099
Elementary Classrooms 897 895 895 899 884
High School Classrooms 451 461 457 457 445
Adult Education Classrooms 10 42 3 3 3
Current Enrollment 23,145 22,909 23,981 23,852 23,599
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 firefighter employment.
Police Protection
Education
Public Works
Water Utility
Wastewater
Solid Waste
Population
Fire Protection
Parks & Recreation
194
Fiscal Year
2019 2020 2021 2022 2023
Citizens 83,781 84,842 87,319 86,859 88,803
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 21.45 21.45 21.48 21.48 21.48
Registered Voters 38,575 43,642 44,829 46,145 47,957
Building Permits Issued 3,653 3,740 4,679 4,777 4,319
Employees from Budget Document 407 407 406 408 451
Number of Stations 4 5 5 5 5
Number of Reserve Personnel 23 15 5*** 5*** 12
Number of Sworn Fire Personnel 48 49 49 50 50
Number of Calls Answered 8,230 9,052 10,480 10,852 10,771 Number of Stations 1 1 1 1 1
Number of Police Officers 73 73 73 74 74
Number of Volunteers 65 17 (1) 56 61 65
Number of Support Personnel 40 36 38 39 41
Number of Calls Answered 50,094 46,874 44,791 45,274 43,497 Park Sites 69 707172 72
Acres of Parks 465 470 474 480 480
Senior Centers 1 1 1 1 1
Swimming Pools 2 2 2 2 2
Tennis Courts 8 8 8 8 8
Pickle Ball Court 11 1
Number of Park/Golf Trees 5,000 5,000 5,000 5,000 5,000 Number of Street Trees 12,500 12,675 12,500 12,550 12,550 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 12 161923 24
Miles of Streets 271 275 280 290 290
Number of Street Lights 5,603 5,650 5,650 5,654 5,771
Number of Meters 23,329 24,906 26,475 28,143 28,612
Miles of Water Mains 299 320 338 345 345
Average Daily Consumptions (Gal) 11.943 MGD 13.643 MGD 12.90 MGD 13.21 MGD 12.346 MGD Number of Connections 23,094 24,411 25,730 27,120 28,612 Miles of Sewer Lines 258 272 273 276 278
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 6.21 MGD 6.83 MGD 7.30 MGD 7.50 MGD 8.1 MGD Treatment Capacity 9.87MGD 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD Number of Accounts 23,215 24,541 25,867 27,264 28,764
Elementary Schools 20 19 15 15 15
High Schools 5 5 5 5 5
Alternative Schools 3 2 2 1 1
Adult Education 1 1 0 1 1
Charter School 1 1 0 0 0
Teachers 1,099 1,242 707 751 730
Elementary Classrooms 884 550 593 549 557
High School Classrooms 445 272 331 352 353
Adult Education Classrooms 3 Not Available 21 21 21
Current Enrollment 23,599 24,061 15,458 15,604 15,935
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 firefighter employment.
Population
Fire Protection
Education
Solid Waste
Wastewater
Water Utility
Public Works
Police Protection
Parks & Recreation
195
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MANTECA FINANCING AUTHORITY
BASIC COMPONENT UNIT
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the
Board of Directors of the Manteca Financing Authority
Manteca, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the 2009 Sewer Revenue Bonds Fund (Fund) of the Manteca Financing Authority (Authority), a component unit of the City of Manteca, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the 2009 Sewer Revenue Bonds Fund of the Authority, as of June 30, 2023, and the change in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management 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, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 199
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Management has omitted management’s discussion and analysis that 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 is not affected by this missing information. 200
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 14, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
October 14, 2024
201
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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. 203
MANTECA FINANCING AUTHORITY
STATEMENT OF NET POSITION
JUNE 30, 2023
2009
Sewer
Revenue Bonds
ASSETS
Current Assets:
Investments held by trustee (Note 2) $1,950,531
Interest receivable 88,230
Total Current Assets 2,038,761
Receivable from the City of Manteca (Note 3) 17,049,469 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
204
MANTECA FINANCING AUTHORITY
STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
2009
Sewer
Revenue Bonds
OPERATING REVENUE
Interest on base rental payments $993,208
Operating Revenue 993,208
OPERATING EXPENSES
Interest and fiscal fees 1,058,763
Total Operating Expenses 1,058,763
Operating Loss (65,555)
NONOPERATING INCOME
Interest on investments 65,555
Net Nonoperating Income 65,555
Change in net position
Net position at beginning of year
Net position at end of year
See accompanying notes to financial statements
205
MANTECA FINANCING AUTHORITY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
2009
Sewer
Revenue Bonds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from the City $1,043,161
Payments to bond trustees (1,058,763)
Cash Flows from Operating Activities (15,602)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment interest received 65,555
Cash Flows from Investing Activities 65,555
Net Cash Flows 49,953
Cash and investments at beginning of period 1,900,578
Cash and investments at end of period $1,950,531
Reconciliation of operating loss to net cash flows
from operating activities:
Operating loss ($65,555)
Change in assets:
Receivables, net 49,953
Cash Flows from Operating Activities ($15,602)
See accompanying notes to financial statements
206
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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. 207
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
208
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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) $1,950,531
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, 2023 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, 2023 have an average maturity of 20 days. 209
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 as of June 30, 2023.
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
2024 $997,163 $997,163
2025 $560,000 983,512 1,543,512
2026 640,000 953,862 1,593,862
2027 720,000 919,862 1,639,862
2028 810,000 881,106 1,691,106
2028-2032 5,050,000 3,645,595 8,695,595
2033-2037 11,220,000 1,189,419 12,409,419
$19,000,000 $9,570,519 28,570,519
Less:
Investments held by trustee 1,950,531
Amount representing interest 9,570,519
Receivable from the City of Manteca at June 30, 2023 $17,049,469 210
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 - LONG TERM DEBT
On May 27, 2009 the Authority issued the 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 Principal Interest Total
2024 $1,058,763 $1,058,763
2025 $560,000 1,045,112 1,605,112
2026 640,000 1,015,462 1,655,462
2027 720,000 981,462 1,701,462
2028 810,000 942,706 1,752,706
2029-2033 5,050,000 3,953,595 9,003,595
2034-2037 11,220,000 1,497,419 12,717,419
Total $19,000,000 $10,494,519 $29,494,519
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