F i scal Year Ended
June 30, 2024
City of Manteca
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
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CITY OF MANTECA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Prepared by
FINANCE DEPARTMENT
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CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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 .......................................................................................... 26 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 28 Reconciliation of the Net Change in Fund Balances Governmental Funds with the Change in Net Position Governmental Activities ............................................... 30 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
General Fund ............................................................................................................................... 31 Low and Moderate Income Housing Assets Special Revenue Fund .......................................... 33 Homeless Navigation Center Special Revenue Fund .................................................................. 34 Recreation Special Revenue Fund ............................................................................................... 35 Development Services Special Revenue Fund ............................................................................ 36 A-1
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
FINANCIAL SECTION (Continued):
Proprietary Funds:
Statement of Net Position ...................................................................................................................... 38 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................. 39 Statement of Cash Flows ...................................................................................................................... 40 Fiduciary Fund:
Statement of Fiduciary Net Position ..................................................................................................... 44 Statement of Changes in Fiduciary Net Position .................................................................................. 45 Notes to Basic Financial Statements ........................................................................................................ 47 Required Supplementary Information:
Pension Plans:
Miscellaneous Plans:
Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 118 Schedule of Contributions ........................................................................................................ 120 Safety Plan
Schedule of Proportionate Share of the Net Pension Liability ................................................. 121 Schedule of Contributions ........................................................................................................ 122 PARS Enhancement Excess Benefit:
Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 123 Schedule of Contributions ........................................................................................................ 124 Other Post-Employment Benefits Plan:
Schedule of Changes in the Total OPEB Liability and Related Ratios ...................................... 125 A-2
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
FINANCIAL SECTION (Continued):
Supplementary Information:
Major Governmental Funds Other Than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Public Facilities Implementation Plan Fund .............................................................................. 130 State Gasoline Tax Fund ............................................................................................................ 131 Gas Tax SB1 Fund ..................................................................................................................... 132 Non-major Governmental Funds:
Combining Balance Sheet .................................................................................................................... 136 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 140 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ....................................................................................................................... 144 Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 154 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 155 Combining Statements of Cash Flows ............................................................................................ 156
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years ............................................................................. 160 Changes in Net Position – Last Ten Fiscal Years ................................................................................... 162 Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................................. 164 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................ 166 General Revenues by Source – Last Ten Fiscal Years ............................................................................. 168 General Expenditures by Function – Last Ten Fiscal Years ................................................................... 169 A-3
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
STATISTICAL SECTION (Continued):
Revenue Capacity:
Assessed and Estimated Value of Taxable Property – Last Ten Fiscal Years ........................................ 170 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .................................................... 171 Principal Property Taxpayers – Current Year and Nine Years Ago ....................................................... 172 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 173
Manteca Redevelopment Project Area No. 1 Top Twenty Assessed Values ......................................... 174 Manteca Redevelopment Project Area No. 2 Top Twenty Assessed Values ......................................... 175 Manteca Redevelopment Merged Project Area (2005 Merged Project Amended Area) Top Twenty assessed Values ............................................................................................................. 176
Manteca Redevelopment Amended Merged Project Area
Top Twenty Assessed Values (2004 Amended Area) ....................................................................... 177 Taxable Sales by Category – Last Ten Calendar Years ......................................................................... 178 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ......................................................... 180 Principal Sales Tax Payers – Current Year and Nine Years Ago ........................................................... 181 Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ................................................................. 182
Computation of Direct and Overlapping Debt ........................................................................................ 183 Computation of Legal Bonded Debt Margin .......................................................................................... 184 Revenue Bond Coverage – Water Revenue Bonds – Last Ten Fiscal Years .......................................... 185 Revenue Bond Coverage – Sewer Revenue Bonds – Last Ten Fiscal Years.......................................... 186
Bonded Debt Pledged-Revenue Coverage – Redevelopment Agency Tax Allocation Bonds – Last Ten Fiscal Years .................................................................................................................... 187 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ........................................................ 188 Principal Employers – Current Year and Nine Years Ago ..................................................................... 189 Operating Information:
Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................... 190 Operating Indicators and Capital Asset Statistics Function/Program – Last Ten Fiscal Years .............. 192 A-4
CITY OF MANTECA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
FINANCING AUTHORITY SECTION:
Independent Auditor’s Report ........................................................................................................................ 197 Authority-wide Financial Statements:
Statement of Net Position ...................................................................................................................... 202 Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 203 Statement of Cash Flows ...................................................................................................................... 204 Notes to Basic Component Unit Financial Statements ......................................................................... 205 A-5
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B-1
B-2
B-3
B-4
Mayor and City Council
Fiscal Year 2023-2024
Gary Singh, Mayor
Mike Morowit, Vice Mayor
Jose Nuno, Councilmember
David Breitenbucher, Councilmember
Charlie Halford, Councilmember
Executive Team1
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 Executive Team is as of June 30, 2024 C-1
•Manteca
C-2
C-3
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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 (City), as of and for the year ended June 30, 2024, 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, 2024 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.
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 May 22, 2025, 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
May 22, 2025
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, 2024. 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 2023-24 fiscal year (FY) by $969.1 million (Net Position). Of this amount $696.8 million reflects investments in capital assets, debt service and legally segregated taxes, grants, and fees; $249.1 million is Restricted Net Position, of which a substantial portion is associated with the City’s reserve policy; and $23.2 million is the combined Unrestricted Net Position. The combined Unrestricted Net Position reflects the inclusion of a Net Pension Liability of $149.4 million and a Total Other Post-Employment Benefits (OPEB) Liability of $37.9 million in accordance with the GAAP. • As of June 30, 2024, the governmental activities reported a total net position of $653.7 million including: $465.6 million net investment in capital assets, $249.1 million in restricted net position, and a combined unrestricted balance of $(61) million.
• Business-type activities reported a combined net position of $315.4 million including: $231.1 million net investment in capital assets, and $84.3 million in unrestricted net position. • Governmental capital assets increased by $25.8 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 $10.1 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 underperforming investment returns. • As of June 30, 2024, the fund balance for the General Fund was $47.6 million including: $1.1 million for Non-Spendable items such as deposits, prepaid assets, advances from other funds, and inventory; $0.4 million of Restricted; $30.5 million Assigned for items such as economic revitalization and public facilities oversizing; and $15.6 million Unassigned.
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, 5 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 the 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 (businesstype 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.
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.
6 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 details 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 business-type activities in the Government-wide Financial Statements. Internal Service Funds account for the financial activity of the City’s equipment/information technology pool, vehicle fleet pool, self-insurance/risk management, and payroll tax benefits. 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. The City added a custodial fund to account for the Community Facilities District 2023-1 special assessment collections and debt service payments.
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’s pension and OPEB plans.
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 $969.1 million as of June 30, 2024. This is an increase of $64.3 million from June 30, 2023.
The following table reflects the Summary of Net Position for the Fiscal Year Ended June 30, 2024 with comparative data for the Fiscal Year Ended June 30, 2023.
Summary of Net Position as of June 30
(in thousands of dollars)
2024 2023 *1 2024 2023 *1 2024 2023 *1
Cash and Other Assets $ 321,661 354,967 $ $ 139,389 155,424 $ 510,391$ $ 461,050 Capital Assets 441,125 466,964 279,251 284,405 751,369 720,376 Total Assets 762,786 821,931 418,640 439,829 1,261,760 1,181,426 Deferred Outflows 48,943 48,415 11,993 11,679 60,094 60,936 Current Liabilities 63,291 62,070 30,117 37,373 99,443 93,408 Non-Current Liabilities 4,007 3,295 53,565 51,131 54,426 57,572 Net Pension & OPEB Liability 143,896 131,899 48,206 43,390 187,286 180,105 Total Liabilities 199,197 209,261 131,888 131,894 341,155 331,085 Deferred Inflows 8,604 7,367 2,787 4,231 11,598 11,391
Net Investment in Capital Assets 465,657 439,717 222,149 231,118 696,775 661,866 Restricted Net Position 217,804 249,084 - - 249,084 217,804 Unrestricted Net Position (61,023) (53,592) 73,808 84,265 23,242 20,216 Total Net Position $ 603,929 653,718 $ $ 295,957 315,383 $ 969,101$ $ 899,886 *1 - Restated for the correction of depreciation discussed in Note 9E Governmental Activities Business-Type Activities Total Government 8 The City’s Government-wide Net Position as of June 30, 2024, comprised the following:
• Cash and investments comprised $421.5 million, an increase of $49.9 million over the prior year.
Restricted cash held by fiscal agents and investments totaled $19.1 million, a decrease of $1 million.
• Total Governmental and Business-type receivables were comprised of $39.4 million in current receivables and $30.5 million of long-term receivables. Long-term receivables are related to conditional grants and loans provided by the former RDA designed to encourage the construction of or improvement to low-to-moderate-income housing, as well as leases receivable. The conditional grants and loans have varying repayment terms and interest rates. • Net investment in capital assets of $696.8 million includes 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 $31 million primarily from the purchase of property at 1403 West Atherton Drive for future economic development and developer dedicated infrastructure from Cerri Unit 3 and Villa Ticino West Units 1 and 2.
• Restricted Net Position, totaling $249.1 million, includes $167.3 million restricted for capital projects, $37 million restricted for redevelopment projects, and $44.5 million restricted for other projects as specified by funding source restrictions.
• The combined Unrestricted Net Position totals $23.2 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 $149.4 million and the Total OPEB Liability of $37.9 million. 9 The Change in Net Position as expressed as the change in revenues and expenses through June 30, 2024, is further reflected in the Statement of Activities shown below.
Revenues
Total government-wide revenues increased by $35.6 million, or 15.6% over the prior year to a total of $228.3 million. Governmental Activities charges for services increased by $7.0 million compared to the prior year while operating and capital grants and contributions increased by $6.5 million. Community Development and Public Works have seen the largest charges for services revenues increases with $3.2 and $2.3 million respectively.
2024 2023 *1 2024 2023 *1 2024 2023 *1
Program Revenues:
Charges for Services 30,021 $ 23,033 $ 74,956 $ 62,624 $ 104,977 $ 85,657 $ Operating Grants & Contributions 15,253 8,726 2,712 3,535 17,965 12,261 Capital Grants & Contributions 45,023 52,366 9,852 4,229 54,875 56,595 General Revenues:
Property Taxes 27,637 25,661 27,637 25,661
Sales Taxes 29,241 29,324 29,241 29,324
Other Taxes 9,964 10,219 9,964 10,219
Interest Income 9,760 4,532 4,813 1,891 14,573 6,423
Development agreements 771 368 771 368
Other Revenue 2,059 1,408 235 366 2,294 1,774
Gain from Sale of Capital Assets 318 - 1,250 - 1,568 -
Total Revenues 170,047 155,637 93,818 72,645 263,865 228,282 Governmental Activities Expenses:
General Government 14,222 10,151 - - 14,222 10,151
Community Development 15,961 14,922 - - 15,961 14,922
Public Safety 52,496 36,874 - - 52,496 36,874
Library 159 146 - - 159 146
Public Works 19,615 16,674 - - 19,615 16,674
Recreation 5,513 6,081 - - 5,513 6,081
Streets and Highways 15,133 12,874 - - 15,133 12,874
Interest and fiscal charges 94 89 - - 94 89
Business-Type Activities:
Water - - 24,628 20,450 24,628 20,450
Wastewater - - 27,935 22,409 27,935 22,409
Solid Waste - - 17,965 16,728 17,965 16,728
Golf - - 1,655 1,636 1,655 1,636
Transit - - 4,197 3,708 4,197 3,708
Total Expenses 123,193 97,811 76,380 64,931 199,573 162,742 Increase (Decrease) in Net
Position Before Transfers 46,854 57,826 17,438 7,714 64,292 65,540 Transfers 2,485 (5,985) (2,485) 5,985 - -
Change in Net Position 49,339 51,841 14,953 13,699 64,292 65,540 Net Position - Beginning *1 604,379 552,088 300,430 282,258 904,809 834,346 Net Position - Ending $ 653,718 $ 603,929 $ 315,383 $ 295,957 $ 969,101 $ 899,886 *1 - Restated for the correction of depreciation discussed in Note 9E Governmental Activities Business-Type Activities Total Government 10 Business-type Activities charges for services increased by $12.3 million and operating and capital grants and contributions decreased by $0.8 million compared to the prior year. Charges for activities can be attributed to an increase of Water and Solid Waste of $5.6 and $4.8 million respectively. Water saw the largest growth in debt service fees of $2.7 million and PFIP zone 12 fees of $2.2 million. Solid waste saw the revenue growth in Residential and Drop Box fees of $3.5 million and $1 million respectively.
General Revenues increased by $12.3 million including: an increase in property taxes of $2.0 million, an increase in gain from sales of assets of $1.6 million from the sale of unused solar panels, an increase in interest income of $8.2 million as interest rates increased during the fiscal year, increase in development agreements of $0.4 million, and a decrease in other revenue of $0.5 million.
Expenses
Expenses for the City totaled $199.6 million for the fiscal year ending June 30, 2024, an increase of $36.8 million, or 22.6% over the prior year. Governmental activities incurred $123.2 million of expenses. The largest expenses by activity were in Public Safety $52.5 million. This was an increase of $25 million as compared to FY 2022-23. The bulk of this increase comes from changes in actuarial assumptions along with investments related to pensions performing lower than expected with an increase of $14.3 million. The remaining major expenditures included Public Works $19.6 million, Community Development $16 million, and Streets & Highways $15.1 million.
Business-type activities incurred $76.3 million in expenses, an increase of $11.4 million from the previous FY. The largest expenses by activity were Sewer at $27.9 million, an increase of $5.5 million, and Water at $24.6 million, an increase of $4.1 million, for the year. In the Water Fund there was an overall increase due to rising costs related to salaries and benefits for employees, and ongoing maintenance projects.
Governmental Activities
As presented in the following two graphs, the largest funding sources for governmental activities are Taxes (39.4%) and Charges for Services (17.7%). The largest uses of resources for governmental activities are Public Safety (42.6%) and Public Works (15.9%).
Charges for Services
17.7%
Grants and
Contributions
35.3%
Taxes
39.4%
Other Revenue
7.6%
11 Expenses by Program – Governmental Activities
Business-type Activities
In the Statement of Revenues, Expenses, and Changes in Fund Net Position for Proprietary Funds, operating income (loss) of Business-type Activities increased by $0.3 million. Net operating income for water increased by $1.4 million, sewer decreased $3.9 million, solid waste increased $3.6 million.
General Government
11.6%
Community
Development
13.0%
Public Safety
42.6%
Library
0.1%
Public Works
15.9%
Parks and Recreation
4.5%
Streets and Highways
12.3%
(6,000,000)
(4,000,000)
(2,000,000)
-
2,000,000
4,000,000
6,000,000
Water Wastewater Solid Waste Transit Golf
2024 2023
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, 2024, the City’s governmental funds reported combined fund balances of $264.2 million, which is an increase of $39.4 million or 18.1% compared with the prior year. Governmental fund revenues were $165 million this year, an increase of $30.9 million, or 23.1%. The General Fund accounted for 44.3% of this revenue total. Expenditures were $127.1 million this year. Of this total, $71.2 million was in the General Fund, $19.5 million was in other major funds and $36.4 million was in non-major funds.
General Fund
General Fund revenues increased in FY 2023-24 by $3.5 million or 5.1% as compared to FY 2022-23.
Property taxes increased 7.7% and licenses and permits increased 25.8%. General Fund expenditures increased by $6.6 million or 10.2% more than the prior year expenditures.
At June 30, 2024, the General Fund balance was comprised of $1.1 million in non-spendable balances, $0.4 million in restricted balances, $30.5 million of assigned balances and $15.6 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.
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.
Homeless Navigation Center Fund revenues increased by $158 thousand or 189% as compared to FY 2022-
23. Use of property and money increased by $179 thousand and other revenue decreased by $21 thousand.
Expenses matched revenues thus leaving fund balance unchanged at June 30, 2024. 13 Recreation
Funding for the Recreation Fund is provided through fees collected from those who participate in recreational activities offered by the city. Revenues for the Recreation Fund increased by $27.6 thousand or 3%. While expenditures decreased by $104.7 thousand or 6.5%. The increase in revenue is primarily due to investment earnings while the decrease in expenditures stems from lower part-time personnel costs.
Development Services
Development Services Fund was established to record revenues and expenditures directly related to development services, including planning and building safety. Revenues increased by $3.5 million or 53.7% as compared to FY 2022-23. Licenses and Permits increased by $2.3 million or 47.7%. Charges for Services increased by $661 thousand or 44.7%. Expenditures increased by $953 thousand or 19.9%. $912 thousand increase can be attributed to personnel expenditures. Due to the large increase in revenues and lower increase in expenditures, change in fund balance increased by $4.3 million or 313%. The ending Development Services fund balance at June 30, 2024 was $18 million.
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 FY 2012-13 except for the transportation element which was completed in FY 2018-19. Total fund balance was $51.5 million at year end an increase of 10.5% over the prior year. Revenues totaled $12.8 million for the year and expenditures were $7.9 million which includes $7.5 million of capital outlay for construction projects in FY 2023-24.
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 allocation 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.
Revenue in the State Gasoline Tax Fund remained relatively constant at $2.5 million as compared to FY 2022-23. Expenditures increased by $696 thousand. Streets and Highways were the major contributor to this increase at $611 thousand. Repairs and Maintenance pavement increased $142 thousand while salaries and benefits increased $155 and $168 thousand, respectively. Fund balance decreased by $712 thousand to $1.2 million at June 30, 2024.
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. Revenues increased by $519 thousand or 26.8%. while expenditures increased by $1 million. This is due to the increase of capital outlay. Fund Balance at June 30, 2024 was $7 million. 14 Enterprise Funds
The City’s Enterprise Funds provide the same type of information found in the Government-Wide Financial Statements, but in more detail. The City’s Enterprise Funds are comprised of the Water Fund, the Sewer Fund, the Solid Waste Fund, the Golf Fund and the Transit Fund. Enterprise Fund net position totaled $317 million at June 30, 2024. Enterprise operating revenues were $75.1 million and operating expenses were $74.0 million in fiscal year 2023-24.
Water Fund
The net position of the Water Fund is $109.1 million, consisting of $45.9 million unrestricted funds and a net investment in capital assets of $63.3 million at the end of the fiscal year.
Activities for the year were comprised of $24.5 million in operating revenues for the current year and $23.7 million in operating expenses. Charges for services showed an increase of 29.9% as compared to the prior year. Operating expenses increased by 21.7% from fiscal year 2022-23. The largest operational increase was Supplies and Other Expenses, which increased by 46.3% due primarily to supplies related to public works SSJID Surface Water and the purchase of water meters and boxes.
Sewer Fund
The net position of the Sewer Fund is $196.6 million for the current year. Of the $196.6 million, $154.5 million of the fund’s net position is invested in capital assets with $42.1 million unrestricted. Operating revenues for the year were $27.8 million, an increase of 6.4% from the prior year. Operating expenses increased by $6 million or 26.8% over the prior year. Supplies and Other Expenses, and Contractual Services experienced the largest increase year over year, a combined total increase of $4.8 million, or 217.6%.
Solid Waste Fund
Operating revenues for FY 2023-24 totaled $21.2 million, an increase of 29.6% over the prior year.
Operating expenses were $18 million an increase of 7.4% from the prior year, leaving the fund with a net operating income of $3.2 million for the year. Net position of the Solid Waste Fund is $3.8 million, of which $5.2 million is invested in capital assets and $(1.4) million is unrestricted. Long-term liabilities total $14.3 million, with $9.4 million for net pension liability and $4.6 million for total OPEB liability. These long-term liabilities result in a negative unrestricted net position.
Golf Fund
The operating revenue for this fund totaled $1.6 million as of June 30, 2024, an increase of 2.8%. Operating expenses totaled $1.7 million, an increase of 1.1% from the prior year. Net position of the Golf Fund is $0.3 million, of which $2.1 million is invested in capital assets and $(1.8) million is unrestricted. The General Fund has subsidized this fund when necessary, but there was no subsidy in fiscal year 2024. 15 Transit Fund
The operating revenue for this fund totaled $0.1 million as of June 30, 2024. Operating expenses totaled $4.2 million. Net position of the Transit Fund is $5.5 million, of which $6.1 million is invested in capital assets and $(0.5) million is unrestricted.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget for the General Fund totaled $68.9 million in revenues, $72.9 million in expenditures, with expenditures exceeding revenues by $3.9 million. The difference between the original budget and the final amended budget was a decrease in revenues of $0.1 million and an increase in expenditures of $5.9 million. Charges for current services accounted for the decrease in revenues, while a variety of departmental charges accounted for the increase in expenditures, the largest being public safety and capital outlay.
General Fund revenues in total exceed their final budgeted forecasts by $4.1 million. Property taxes, Sales taxes and other taxes exceeded their final budgeted forecasts by a combined total of $2.6 million, while Fines and forfeitures were under budget forecasts by $0.04 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 $71.2 million which was $1.7 million less than the total final amended budget.
16 CAPITAL ASSETS
At the end of FY 2023-24, the City had $751.4 million, net of depreciation, invested in a broad range of capital assets used in governmental and business type activities as outlined in Note 7.
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 long-term outstanding debt associated with Governmental Activities and $53.3 million in debt associated with Business-type Activities. Debt in the Business-type Activities are related to the Sewer and Water Revenue bonds.
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]. 2024 2023 *1 2024 2023 *1 2024 2023 *1
Land 65,269 $ 63,067 $ 4,394 $ 4,394 $ 69,663 $ 67,461 $ Subscription assets in progress 1,065 109 1,065 109
Construction in Progress 37,575 32,217 10,509 27,093 48,084 59,310 Buildings & Improvements 36,798 36,759 20,720 18,564 57,518 55,323 Intangible right-to-use building 635 635 22 22 657 657
Machinery & Equipment 28,527 28,716 34,119 31,261 62,646 59,977 Intangible right-to-use building 29 29 23 23 52 52
Storm Drain 72,989 68,924 72,989 68,924
Streets 359,452 331,865 359,452 331,865
Parks 82,606 79,998 82,606 79,998
Subscription assets 1,810 1,400 1,810 1,400
Sewer lines and improvements 101,007 76,585 101,007 76,585 Sewer plant expansion 128,915 128,915 128,915 128,915
Water wells and pipelines 155,958 152,733 155,958 152,733 Other Infrastructure 165 165 165 165
Less accumulated depreciation ( 219,791) (202,594) (171,427) (160,504) (391,218) (363,098) Total $ 466,964 $ 441,125 284,405$ $ 279,251 $ 751,369 $ 720,376 *1 - Restated for the correction of depreciation discussed in Note 9E Governmental Activities Business-Type Activities Total Government 2024 2023 2024 2023 2024 2023
Capital Lease $ - $ - $ - $ - $ -
Revenue Bonds - - 53,277 57,079 53,277 57,079
Total $ - $ - $ 53,277 57,079$ $ 53,277 $ 57,079
Governmental Activities Business-Type Activities Total Government 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, 2024
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments (Note 3) $282,134,858 $139,321,970 $421,456,828 Restricted cash and investments (Note 3) 7,831,124 11,284,623 19,115,747 Accounts receivable, net 13,811,303 14,953,234 28,764,537 Taxes receivable 9,683,201 9,683,201
Interest receivable 785,551 24,296 809,847
Prepaids and deposits 30,668 30,668
Internal balances (Note 4D) 12,416,433 (12,416,433)
Long-term notes receivable (Notes 5 and 16D) 27,657,558 27,657,558 Employee notes receivable (Note 6) 41,525 41,525
Capital assets, not being depreciated (Note 7) 103,909,094 14,903,283 118,812,377 Capital assets, being depreciated (net) (Note 7) 363,055,105 269,500,990 632,556,095 Leases receivable (Note 14) 575,079 2,256,276 2,831,355 Total Assets 821,931,499 439,828,239 1,261,759,738
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 43,775,324 9,755,955 53,531,279 Deferred outflows related to OPEB (Note 11) 4,640,149 1,923,304 6,563,453 Total Deferred Outflows of Resources 48,415,473 11,679,259 60,094,732
LIABILITIES
Accounts payable 10,750,410 5,944,747 16,695,157
Contracts payable (Note 16C) 8,859,544 19,728,495 28,588,039 Refundable deposits 6,078,862 4,438,276 10,517,138
Accrued liabilities 3,565,723 650,251 4,215,974
Unearned revenue 27,311,937 2,555,394 29,867,331
Compensated absences (Note 1G):
Due within one year 3,685,338 1,139,903 4,825,241
Due in more than one year 2,456,892 759,936 3,216,828
Estimated claims liability (Note 13):
Due within one year 1,302,921 1,302,921
Due in more than one year 46,666 46,666
Long-term debt (Notes 8, 14 and 15):
Due within one year 514,271 2,915,941 3,430,212
Due in more than one year 791,770 50,371,418 51,163,188 Net pension liability (Note 10):
Due in more than one year 117,118,265 32,290,480 149,408,745 Total OPEB liability (Note 11):
Due in more than one year 26,778,146 11,099,321 37,877,467 Total Liabilities 209,260,745 131,894,162 341,154,907
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions (Note 10) 2,098,627 2,098,627 Deferred inflows related to OPEB (Note 11) 4,721,560 1,957,048 6,678,608 Deferred inflows related to leases (Note 14) 547,201 2,273,705 2,820,906 Total Deferred Inflows of Resources 7,367,388 4,230,753 11,598,141 NET POSITION (Note 9):
Net investment in capital assets 465,658,158 231,116,914 696,775,072 Restricted for:
Capital projects 167,276,437 167,276,437
Redevelopment projects 37,252,943 37,252,943
Special revenue projects:
Development mitigation 10,922,029 10,922,029
Landscaping and lighting 2,055,371 2,055,371
Public safety 6,716,199 6,716,199
Other special revenue projects 24,860,722 24,860,722
Total Restricted Net Position 249,083,701 249,083,701
Unrestricted (61,023,020) 84,265,669 23,242,649
Total Net Position $653,718,839 $315,382,583 $969,101,422 See accompanying notes to basic financial statements
20 CITY OF MANTECA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
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 $14,222,196 $7,841,363 $3,129,274 ($3,251,559) ($3,251,559) Community development 15,960,910 9,422,712 673,980 $1,760,625 (4,103,593) (4,103,593) Public safety 52,495,969 1,774,957 1,547,982 1,914,334 (47,258,696) (47,258,696) Library 159,214 (159,214) (159,214)
Public works 19,615,341 5,006,321 67,711 10,976,368 (3,564,941) (3,564,941) Parks and recreation 5,513,406 5,975,713 483 7,361,155 7,823,945 7,823,945 Streets and highways 15,133,269 9,833,933 23,010,180 17,710,844 17,710,844 Interest and fiscal charges 93,675 (93,675) (93,675)
Total Governmental Activities 123,193,980 30,021,066 15,253,363 45,022,662 (32,896,889) (32,896,889) Business-type Activities:
Water 24,628,431 24,411,625 4,046,155 $3,829,349 3,829,349 Sewer 27,934,721 27,693,625 100,000 5,767,932 5,626,836 5,626,836 Solid waste 17,964,654 21,136,784 82,982 3,255,112 3,255,112 Golf 1,654,615 1,592,653 (61,962) (61,962)
Transit 4,197,567 121,233 2,529,181 37,365 (1,509,788) (1,509,788) Total Business-type Activities 76,379,988 74,955,920 2,712,163 9,851,452 11,139,547 11,139,547 Total $199,573,968 $104,976,986 $17,965,526 $54,874,114 (32,896,889) 11,139,547 (21,757,342) General revenues:
Taxes:
Property taxes 27,637,304 27,637,304
Sales taxes 29,241,378 29,241,378
Other taxes 9,964,285 9,964,285
Interest income 9,760,393 4,813,201 14,573,594
Development agreements, unrestricted 770,559 770,559
Other revenue 2,059,406 234,830 2,294,236
Gain on sale of capital assets 317,807 1,250,000 1,567,807 Transfers, net (Note 4A) 2,484,789 (2,484,789)
Total general revenues and transfers 82,235,921 3,813,242 86,049,163 Change in Net Position 49,339,032 14,952,789 64,291,821 Net Position-Beginning, as Restated (Note 9E) 604,379,807 300,429,794 904,809,601 Net Position-Ending $653,718,839 $315,382,583 $969,101,422 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 2024. 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.
RECREATION FUND
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.
DEVELOPMENT SERVICES FUND
Established to record revenues and expenditures directly related to development services, including planning and building safety.
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.
STATE GASOLINE TAX FUND
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.
GAS TAX SB1 FUND
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. 23 CITY OF MANTECA
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2024
Low and Moderate Homeless
Income Housing Navigation Development
General Assets Center Recreation Services
ASSETS
Cash and investments (Note 3) $44,672,005 $15,913,176 $1,464,427 $18,244,471 Restricted cash and investments (Note 3) 427,774 $924,434 Accounts receivables (net of allowance for
estimated uncollectible accounts) 734,812 3,700 1,269,301 Taxes receivable 6,846,638
Interest receivable 784,721
Employee notes receivable (Note 6) 41,525
Due from other funds (Note 4B) 6,470,680
Prepaids and deposits 4,124
Advances to other funds (Note 4C) 1,081,780
Long-term notes receivable (Notes 5 and 16D) 472,500 28,113,381 Leases receivable (Note 14)
Total Assets $61,536,559 $29,037,815 $15,913,176 $1,468,127 $19,513,772
LIABILITIES
Accounts payable $3,748,436 $1,483 $47,407 $313,046
Contracts payable
Refundable deposits 882,744 242,789
Accrued liabilities 3,541,338
Due to other funds (Note 4B)
Advances from other funds (Note 4C)
Unearned revenue 5,048,287 15,995,513
Total Liabilities 13,220,805 15,996,996 290,196 313,046
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 195,620 1,246,132 Unavailable revenue - notes receivable
(Notes 5 and 16D) 472,500 $28,113,381
Deferred inflows related to leases (Note 14)
Total Deferred Inflows of Resources 668,120 28,113,381 1,246,132
FUND BALANCES
Fund balance (Note 9):
Nonspendable 1,085,904
Restricted 427,774 924,434 1,177,931 17,954,594
Committed
Assigned 30,542,921
Unassigned 15,591,035 (83,820)
Total Fund Balances 47,647,634 924,434 (83,820) 1,177,931 17,954,594 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $61,536,559 $29,037,815 $15,913,176 $1,468,127 $19,513,772 See accompanying notes to basic financial statements
24 Public Facilities State Other Total
Implementation Gasoline Gas Tax Governmental Governmental Plan Tax SB1 Funds Funds
$45,522,129 $1,214,594 $6,745,723 $139,084,046 $272,860,571 2,443,804 4,035,112 7,831,124
2,713,166 9,072,182 13,793,161
210,561 399,385 2,226,617 9,683,201
830 785,551
41,525
6,470,680
4,124
10,797,628 11,879,408
28,585,881
575,079 575,079
$61,476,727 $1,425,155 $7,145,108 $154,993,866 $352,510,305 $1,507,570 $190,832 $53,768 $4,242,074 $10,104,616
721,140 28,406 749,546
3,562,048 1,390,473 6,078,054
3,541,338
4,411,989 4,411,989
1,521,666 1,521,666
6,268,137 27,311,937
7,312,424 190,832 53,768 16,341,079 53,719,146
2,640,701 1,308,942 5,391,395
28,585,881
547,201 547,201
2,640,701 1,856,143 34,524,477
1,085,904
51,523,602 1,234,323 7,091,340 133,635,318 213,969,316
303,025 303,025
2,952,404 33,495,325
(94,103) 15,413,112
51,523,602 1,234,323 7,091,340 136,796,644 264,266,682
$61,476,727 $1,425,155 $7,145,108 $154,993,866 $352,510,305 25 CITY OF MANTECA
Reconciliation of the
GOVERNMENTAL FUNDS-BALANCE SHEET
with the
GOVERNMENTAL ACTIVITIES NET POSITION
JUNE 30, 2024
Total fund balances reported on the Governmental Funds Balance Sheet $264,266,682 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. 464,643,232
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 9,274,287
Accounts receivable 18,142
Prepaid items 26,544
Capital assets, not being depreciated 1,170,740
Capital assets (net of accumulated depreciation) 1,150,227 Contracts and accounts payable (645,794)
Accrued liabilities (19,221)
Refundable deposits (808)
Estimated claims liability (1,349,587)
Net pension liability and deferred outflows/inflows related to pensions (3,062,462) Total OPEB liability and deferred outflows/inflows related to OPEB (763,220) Long-term debt (742,412)
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. 33,977,276
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, including leases and subscription-based information technology arrangements (563,629)
Net pension liability and deferred outflows/inflows related to pensions (72,379,106) Total OPEB liability and deferred outflows/inflows related to OPEB (26,096,337) Compensated absences (6,142,230)
Interest payable (accrued liabilities) (5,164)
Contracts payable (8,109,998)
Allowance for conditional grants (928,323)
NET POSITION OF GOVERNMENTAL ACTIVITIES $653,718,839
See accompanying notes to basic financial statements
26 This Page Left Intentionally Blank
CITY OF MANTECA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2024
Low and Moderate Homeless
Income Housing Navigation Development
General Assets Center Recreation Services
REVENUES
Property taxes $27,637,304
Sales taxes 19,131,748
Other taxes 11,324,601
Licenses and permits 1,319,650 $7,170,925
Fines and forfeitures 422,302
Use of money and property 1,304,252 $169,312 $18,162 493,311 Revenue from other agencies 2,151,062 230,742
Charges for current services 9,211,048 915,542 2,138,208 Other revenue 570,489 35,000 $74,588 2,865
Total Revenues 73,072,456 204,312 74,588 936,569 10,033,186
EXPENDITURES
Current:
General government 11,182,703 74,588 280,007
Community development 5,291,519
Public safety 37,321,035
Library 159,214
Public works 8,989,948
Parks and recreation 531,630 1,408,773
Streets and highways
Nondepartmental 9,541,249
Capital outlay 3,328,303 85,217
Debt service:
Principal 138,668 3,457 176,221
Interest and fiscal charges 1,297 17 2,373
Total Expenditures 71,194,047 74,588 1,497,464 5,750,120
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,878,409 204,312 (560,895) 4,283,066
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4A) 1,400,000
Transfers (out) (Note 4A) (2,521,766)
Issuance of SBITA 446,372
Proceeds from sale of property 385,307
Total Other Financing Sources (Uses) (1,690,087) 1,400,000 NET CHANGE IN FUND BALANCES 188,322 204,312 839,105 4,283,066 FUND BALANCES - as previously reported 40,508,130 720,122 (83,820) ADJUSTMENTS (Note 9E)
Adjustment for change within the financial
reporting entity 7,505,786
Restated for correction of an error (554,604)
Changes from major fund to nonmajor fund
Changes from nonmajor fund to major fund 338,826 13,671,528
BEGINNING FUND BALANCES,
as adjusted and restated 47,459,312 720,122 (83,820) 338,826 13,671,528 ENDING FUND BALANCES (DEFICIT) $47,647,634 $924,434 ($83,820) $1,177,931 $17,954,594 See accompanying notes to basic financial statements
28 (Formerly Major)
Public Facilities State Special Other Total
Implementation Gasoline Gas Tax Apportionment Governmental Governmental Plan Tax SB1 Streets Funds Funds
$27,637,304
$10,109,630 29,241,378
11,324,601
7,968,367 16,458,942
422,302
$1,309,167 $85,081 $166,406 5,839,955 9,385,646
2,414,233 2,291,655 19,477,845 26,565,537
11,445,439 18,123,228 41,833,465
13,795 1,480,535 2,177,272
12,754,606 2,513,109 2,458,061 62,999,560 165,046,447
562,053 12,099,351
35,000 5,326,519
10,781,737 48,102,772
159,214
333,423 22,186 4,674,316 14,019,873
4,382 1,162,038 3,106,823
3,115,495 1,584,787 4,700,282
70,059 9,611,308
7,454,052 82,674 1,091,069 17,549,767 29,591,082
318,346
86,616 90,303
7,874,091 3,224,737 1,091,069 36,419,757 127,125,873
4,880,515 (711,628) 1,366,992 26,579,803 37,920,574
2,118,770 3,518,770
(318,586) (2,840,352)
446,372
385,307
1,800,184 1,510,097
4,880,515 (711,628) 1,366,992 28,379,987 39,430,671
46,643,087 ($6,599,737) 136,697,047 217,884,829
7,505,786
(554,604)
6,599,737 (6,599,737)
1,945,951 5,724,348 (21,680,653)
46,643,087 1,945,951 5,724,348 108,416,657 224,836,011
$51,523,602 $1,234,323 $7,091,340 $136,796,644 $264,266,682 29 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, 2024
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 $39,430,671 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 24,749,717 Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $398,862 which has already been allocated to serviced funds) (17,986,966) 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. 18,489,235
Retirements are deducted from fund balance (205,039)
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 (446,372) Repayment of debt principal is added back to fund balance 318,346
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 (12,751,134)
Contracts and accounts payable 2,081,423
Compensated absences 1,363,556
Interest payable (3,372)
Allowance for conditional grants (40,499)
Net pension liability and deferred outflows/inflows related to pensions (6,507,127) Total OPEB liability and deferred outflows/inflows related to OPEB 177,392
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 669,201 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $49,339,032 See accompanying notes to basic financial statements
30 CITY OF MANTECA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Property taxes $25,826,492 $25,826,492 $27,637,304 $1,810,812 Sales taxes 18,717,837 18,717,837 19,131,748 413,911
Other taxes 10,900,000 10,900,000 11,324,601 424,601
Licenses and permits 941,000 976,000 1,319,650 343,650
Fines and forfeitures 501,000 769,800 422,302 (347,498) Use of money and property 775,000 775,000 1,304,252 529,252 Revenue from other agencies 685,000 704,667 2,151,062 1,446,395 Charges for current services 10,203,308 9,647,308 9,211,048 (436,260) Other revenue 511,800 608,800 570,489 (38,311)
Total Revenues 69,061,437 68,925,904 73,072,456 4,146,552 EXPENDITURES:
Current:
General government:
Legislative 1,174,550 1,206,783 1,010,451 196,332
City Attorney 1,694,738 1,451,296 1,254,148 197,148
Administration 5,509,713 5,505,939 4,598,777 907,162
Human resources 1,301,839 1,337,808 1,376,379 (38,571)
Financial services 2,898,375 3,045,391 2,942,948 102,443 Total general government 12,579,215 12,547,217 11,182,703 1,364,514 Public safety:
Police 22,054,692 23,441,889 23,566,980 (125,091)
Fire 11,895,342 12,544,108 13,181,158 (637,050)
Animal control 548,740 645,952 572,897 73,055
Total public safety 34,498,774 36,631,949 37,321,035 (689,086) Library 148,791 148,489 159,214 (10,725)
Public works:
Engineering 998,214 1,038,833 736,206 302,627
Street maintenance 195,214 125,814 117,528 8,286
Storm drain maintenance and operation 1,042,855 1,113,885 979,345 134,540 Vehicle maintenance 984,835 992,272 898,342 93,930
Building maintenance 7,116,715 7,546,845 6,258,527 1,288,318 Total public works 10,337,833 10,817,649 8,989,948 1,827,701 (Continued)
31 CITY OF MANTECA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
Parks and recreation:
Senior center 530,635 598,771 531,630 67,141
Total parks and recreation 530,635 598,771 531,630 67,141 Nondepartmental charges 8,854,000 9,093,335 9,541,249 (447,914) Capital outlay 26,000 3,028,705 3,328,303 (299,598)
Debt service:
Principal 138,668 (138,668)
Interest and fiscal charges 1,297 (1,297)
Total debt service 139,965 (139,965)
Total Expenditures 66,975,248 72,866,115 71,194,047 1,672,068
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,086,189 (3,940,211) 1,878,409 5,818,620
OTHER FINANCING SOURCES (USES)
Transfers in 971,500 (971,500)
Transfers (out) (2,020,000) (2,580,070) (2,521,766) 58,304 Issuance of long term debt 446,372 446,372
Proceeds from sale of property 385,307 385,307
Total Other Financing Sources (Uses) (2,020,000) (1,608,570) (1,690,087) (81,517) NET CHANGE IN FUND BALANCE $66,189 ($5,548,781) 188,322 $5,737,103 BEGINNING FUND BALANCE 47,459,312
ENDING FUND BALANCE $47,647,634
See accompanying notes to basic financial statements
32 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, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Use of money and property $169,312 $169,312
Other revenue $25,000 $25,000 35,000 10,000
Total Revenues 25,000 25,000 204,312 179,312
NET CHANGE IN FUND BALANCE $25,000 $25,000 204,312 $179,312 BEGINNING FUND BALANCE 720,122
ENDING FUND BALANCE $924,434
See accompanying notes to basic financial statements
33 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, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Revenue from other agencies $3,000,000
Other revenue $55,355 $74,588 $19,233
Total Revenues 3,000,000 55,355 74,588 19,233
EXPENDITURES:
Current:
General government 74,588 74,588
Capital outlay 19,000,000
Total Expenditures 19,000,000 74,588 74,588
NET CHANGE IN FUND BALANCE ($16,000,000) ($19,233) $19,233 BEGINNING FUND BALANCE (DEFICIT) (83,820)
ENDING FUND BALANCE (DEFICIT) ($83,820)
See accompanying notes to basic financial statements
34 CITY OF MANTECA
RECREATION FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Use of money and property $18,162 $18,162
Charges for current services $1,061,325 $859,562 915,542 55,980 Other revenue 2,865 2,865
Total Revenues 1,061,325 859,562 936,569 77,007
EXPENDITURES:
Current:
Parks and recreation: 1,069,261 1,694,028 1,408,773 285,255 Capital outlay 85,214 85,217 (3)
Debt service:
Principal 3,457 (3,457)
Interest and fiscal charges 17 (17)
Total Expenditures 1,069,261 1,779,242 1,497,464 281,778
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (7,936) (919,680) (560,895) 358,785
OTHER FINANCING SOURCES (USES)
Transfers in 1,400,000 1,400,000 1,400,000
Total Other Financing Sources (Uses) 1,400,000 1,400,000 1,400,000 NET CHANGE IN FUND BALANCE $1,392,064 $480,320 839,105 $358,785 BEGINNING FUND BALANCE 338,826
ENDING FUND BALANCE $1,177,931
See accompanying notes to basic financial statements
35 CITY OF MANTECA
DEVELOPMENT SERVICES FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Licenses and permits $4,050,000 $4,050,000 $7,170,925 $3,120,925 Use of money and property 3,500 3,500 493,311 489,811
Revenue from other agencies 60,000 230,742 170,742
Charges for current services 1,665,000 1,665,000 2,138,208 473,208 Total Revenues 5,718,500 5,778,500 10,033,186 4,254,686 EXPENDITURES:
Current:
General government:
City Attorney 250,000 250,000 174,016 75,984
Financial services 106,000 105,991 9
Total general government 250,000 356,000 280,007 75,993 Community development 6,693,215 5,785,716 5,291,519 494,197 Capital outlay 1,325,000
Debt service:
Principal 176,221 (176,221)
Interest and fiscal charges 2,373 (2,373)
Total debt service 178,594 (178,594)
Total Expenditures 8,268,215 6,141,716 5,750,120 391,596
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,549,715) (363,216) 4,283,066 4,646,282
OTHER FINANCING SOURCES (USES)
Transfers (out) (1,156,203) 1,156,203
Total Other Financing Sources (Uses) (1,156,203) 1,156,203 NET CHANGE IN FUND BALANCE ($2,549,715) ($1,519,419) 4,283,066 $5,802,485 BEGINNING FUND BALANCE 13,671,528
ENDING FUND BALANCE $17,954,594
See accompanying notes to basic financial statements
36 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 2024, 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. 37 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2024
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Transit Total Funds
ASSETS
Current assets
Cash and investments (Note 3) $58,122,594 $72,872,873 $7,887,105 $439,398 $139,321,970 $9,274,287 Accounts receivables (net of allowance for
estimated uncollectible accounts) 2,456,926 4,587,584 3,036,390 35,758 $4,836,576 14,953,234 18,142 Interest receivable 24,296 24,296
Prepaids and deposits 26,544
Lease receivable (Note 14) 45,596 45,596
Total Current Assets 60,579,520 77,460,457 10,923,495 545,048 4,836,576 154,345,096 9,318,973 Non-current assets
Restricted cash and investments (Note 3) 5,910,316 5,374,307 11,284,623 Advances to other funds (Note 4C) 453,082 346,567 799,649 Lease receivable (Note 14) 2,210,680 2,210,680
Capital assets not being depreciated (Note 7) 2,238,946 10,934,168 489,214 1,240,955 14,903,283 1,170,740 Capital assets (net of accumulated
depreciation) (Note 7) 86,169,258 171,734,538 4,701,069 841,013 6,055,112 269,500,990 1,150,227 Total Non-Current Assets 94,771,602 188,389,580 5,190,283 4,292,648 6,055,112 298,699,225 2,320,967 Total Assets 155,351,122 265,850,037 16,113,778 4,837,696 10,891,688 453,044,321 11,639,940
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions (Note 10) 2,897,851 3,450,645 2,854,664 364,931 187,864 9,755,955 1,325,842 Deferred outflows related to OPEB (Note 11) 531,703 410,888 798,701 182,012 1,923,304 131,851 Total Deferred Outflows of Resources 3,429,554 3,861,533 3,653,365 546,943 187,864 11,679,259 1,457,693
LIABILITIES
Current liabilities
Accounts payable 2,364,723 2,562,642 538,973 241,433 236,976 5,944,747 645,794 Due to other funds (Note 4B) 2,058,691 2,058,691
Refundable deposits 2,360,185 2,037,112 28,089 12,890 4,438,276 808 Unearned revenue 2,555,394 2,555,394
Interest payable 538,258 111,985 8 650,251 19,221
Compensated absences (Note 1G) 342,713 387,648 328,509 55,715 25,318 1,139,903 Estimated claims liability (Note 13) 1,302,921
Revenue bonds (Note 8) 1,710,000 1,200,000 2,910,000
Lease liability (Note 14) 1,573 2,795 1,573 5,941 1,579 Subscription liability (Note 15) 234,925
Total Current Liabilities 7,317,452 6,302,182 897,152 297,148 4,889,269 19,703,203 2,205,248 Long-term liabilities
Contracts payable 2,163,683 17,564,812 19,728,495
Advances from other funds (Note 4C) 3,313,092 7,844,299 11,157,391 Compensated absences (Note 1G) 228,476 258,432 219,006 37,143 16,879 759,936 Estimated claims liability (Note 13) 46,666
Revenue bonds (Note 8) 23,395,939 26,970,736 50,366,675 Net pension liability (Note 10) 9,591,373 11,421,024 9,448,432 1,207,856 621,795 32,290,480 4,388,304 Total OPEB liability (Note 11) 3,068,441 2,371,219 4,609,278 1,050,383 11,099,321 760,907 Lease liability (Note 14) 1,581 1,581 1,581 4,743 1,582 Subscription liability (Note 15) 504,326
Total Long-Term Liabilities 41,762,585 66,432,103 14,278,297 2,295,382 638,674 125,407,041 5,701,785 Total Liabilities 49,080,037 72,734,285 15,175,449 2,592,530 5,527,943 145,110,244 7,907,033
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to lease (Note 14) 2,273,705 2,273,705 Deferred inflows related to OPEB (Note 11) 541,032 418,097 812,714 185,205 1,957,048 134,164 Total Deferred Inflows of Resources 541,032 418,097 812,714 2,458,910 4,230,753 134,164 NET POSITION (Note 9):
Net investment in capital assets 63,299,111 154,493,594 5,187,129 2,081,968 6,055,112 231,116,914 1,578,555 Unrestricted 45,860,496 42,065,594 (1,408,149) (1,748,769) (503,503) 84,265,669 3,477,881 Total Net Position $109,159,607 $196,559,188 $3,778,980 $333,199 $5,551,609 $315,382,583 $5,056,436 See accompanying notes to basic financial statements
38 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Business-type Activities-Enterprise Funds Governmental
ActivitiesInternal Service
Water Sewer Solid Waste Golf Transit Total Funds
OPERATING REVENUES
Charges for services $24,411,625 $27,693,625 $21,136,784 $1,592,653 $121,233 $74,955,920 $5,584,255 Insurance premium contribution from other funds 6,781,164 Miscellaneous 40,229 94,932 83,458 16,211 234,830 131,236 Total Operating Revenues 24,451,854 27,788,557 21,220,242 1,608,864 121,233 75,190,750 12,496,655
OPERATING EXPENSES
Personnel services 6,126,794 6,535,856 5,400,753 1,011,241 407,959 19,482,603 3,057,418 Contractual services 792,825 1,949,054 5,343,604 1,940 2,392,620 10,480,043 33,816 Supplies and other expenses 8,611,595 5,927,520 1,950,773 177,392 158,983 16,826,263 554,281 Utilities 915,224 2,974,225 43,682 197,019 50,462 4,180,612 475,636 Repairs and maintenance 294,746 1,159,081 53,132 126,302 69,171 1,702,432 905,013 Vehicle maintenance and operations 22,599 22,219 746,918 791,736 Interdepartmental 2,094,107 2,122,767 2,178,949 11,444 594,981 7,002,248 388,746 Insurance 383,800 708,565 433,701 58,627 1,584,693 5,827,502 Claims 280,486
Depreciation (Note 7) 4,316,776 4,848,906 1,780,994 69,778 480,407 11,496,861 398,862 Miscellaneous 119,821 272,626 32,122 872 42,984 468,425 88,247 Total Operating Expenses 23,678,287 26,520,819 17,964,628 1,654,615 4,197,567 74,015,916 12,010,007 Operating Income (Loss) 773,567 1,267,738 3,255,614 (45,751) (4,076,334) 1,174,834 486,648
NONOPERATING REVENUES (EXPENSES)
Interest income 2,067,512 2,440,132 247,850 57,707 4,813,201 77,756 Gain on sale of capital assets 1,250,000 1,250,000 92,576 Interest (expense) and fiscal charges (950,144) (1,413,902) (26) (2,364,072) (32,779) Intergovernmental grants 100,000 82,982 2,529,181 2,712,163 Net Nonoperating Revenues (Expenses) 1,117,368 2,376,230 330,806 57,707 2,529,181 6,411,292 137,553 Income (Loss) Before Contributions and Transfers 1,890,935 3,643,968 3,586,420 11,956 (1,547,153) 7,586,126 624,201 Capital grants 1,063,126 37,365 1,100,491
Contributions 2,983,029 5,767,932 8,750,961
Transfers in (Note 4A) 441,696 441,696 45,000
Transfers out (Note 4A) (1,126,206) (1,171,186) (498,411) (97,435) (33,247) (2,926,485) Net Contributions and Transfers 2,919,949 5,038,442 (498,411) (97,435) 4,118 7,366,663 45,000 Change in net position 4,810,884 8,682,410 3,088,009 (85,479) (1,543,035) 14,952,789 669,201 BEGINNING NET POSITION, as previously reported 103,292,172 185,827,025 473,524 745,235 5,950,370 296,288,326 3,342,796 ADJUSTMENTS (Note 9E)
Change in Accounting Principle - OPEB Allocation 1,056,551 2,049,753 217,447 (326,557) 1,475,929 4,473,123 489,835 Change Within the Financial Reporting Entity 554,604
Error Correction - Depreciation (331,655) (331,655)
BEGINNING NET POSITION, AS ADJUSTED 104,348,723 187,876,778 690,971 418,678 7,094,644 300,429,794 4,387,235 ENDING NET POSITION $109,159,607 $196,559,188 $3,778,980 $333,199 $5,551,609 $315,382,583 $5,056,436 See accompanying notes to basic financial statements
39 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Governmental
Business-type Activities-Enterprise Funds ActivitiesInternal Service Water Sewer Solid Waste Golf Transit Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $24,156,204 $29,829,715 $20,087,332 $1,596,223 $123,133 $75,792,607 $12,478,513 Payments to suppliers (11,228,232) (8,882,874) (8,605,083) (375,177) (2,760,851) (31,852,217) (8,180,137) Payments to or on behalf of employees (5,667,364) (6,910,447) (6,207,657) (1,062,175) (355,846) (20,203,489) (2,490,815) Internal activity - payments to other funds (2,094,107) (2,122,767) (2,178,949) (11,444) (594,981) (7,002,248) Claims paid (546,541)
Cash Flows from Operating Activities 5,166,501 11,913,627 3,095,643 147,427 (3,588,545) 16,734,653 1,261,020
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental grants 100,000 82,982 3,870,849 4,053,831 Interfund receipts (payments) 25,405 109,927 (230,304) (94,972) Settlement receipts 2,500,000 2,500,000
Transfers in from other funds 441,696 441,696 45,000
Transfers (out) to other funds (582,557) (582,557) (1,165,114) Cash Flows from Noncapital Financing Activities 1,942,848 69,066 82,982 3,640,545 5,735,441 45,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Lease receipts 17,429 17,429
Acquisition of capital assets, net (3,428,055) (3,521,145) (593,061) (268,542) (89,365) (7,900,168) (1,190,261) Proceeds from sale of capital assets 1,250,000 1,250,000 92,576 Capital grants 1,063,126 37,365 1,100,491
Long-term debt payment - principal (1,631,564) (1,903,889) (1,564) (3,537,017) (230,707) Long-term debt payment - interest and fiscal charges (1,184,208) (1,505,890) (24) (2,690,122) (24,428) Cash Flows from Capital and Related Financing Activities (5,180,701) (5,680,924) (594,649) (251,113) (52,000) (11,759,387) (1,352,820)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest 2,067,512 2,440,132 247,850 33,413 4,788,907 77,756 Cash Flows from Investing Activities 2,067,512 2,440,132 247,850 33,413 4,788,907 77,756 Net Cash Flows 3,996,160 8,741,901 2,831,826 (70,273) 15,499,614 30,956 Cash and investments at beginning of period 60,036,750 69,505,279 5,055,279 509,671 135,106,979 9,243,331 Cash and investments at end of period $64,032,910 $78,247,180 $7,887,105 $439,398 $150,606,593 $9,274,287 (Continued)
See accompanying notes to basic financial statements
40 CITY OF MANTECA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
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) $773,567 $1,267,738 $3,255,614 ($45,751) ($4,076,334) $1,174,834 $486,648 Adjustments to reconcile operating income (loss) to cash flows from operating activities:
Depreciation 4,316,776 4,848,906 1,780,994 69,778 480,407 11,496,861 398,862 Change in assets and liabilities:
Accounts receivables (net of allowance for
estimated uncollectible accounts) (969,074) 112,307 (1,132,440) (12,641) (2,001,848) (18,142) Prepaids and deposits (26,544)
Accounts payable and other accrued expenses 1,880,326 2,630,049 (1,621) 186,975 (44,731) 4,650,998 119,648 Contracts payable (1,294,524) 3,429,218 2,134,694
Compensated absences 27,540 57,451 49,104 (4,577) 8,950 138,468 Claims liability (266,055)
Net pension liability, deferred outflows and inflows 1,772 (470,770) (950,122) (14,584) 43,163 (1,390,541) 483,136 Total OPEB liability, deferred outflows and inflows 430,118 38,728 94,114 (31,773) 531,187 83,467 Cash Flows from Operating Activities $5,166,501 $11,913,627 $3,095,643 $147,427 ($3,588,545) $16,734,653 $1,261,020 NONCASH TRANSACTIONS:
Contributions of capital assets, net $2,983,029 $5,767,932 $8,750,961 Amortization of bond premium $193,316 $84,094 $277,410
Transfer of compensated absences from governmental activities ($543,649) ($588,629) ($498,411) ($97,435) ($33,247) ($1,761,371) Issuance of lease $2,322,213 $2,322,213
See accompanying notes to basic financial statements
41 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 PRIVATE-PURPOSE TRUST FUND The Fund is used to account for the activities of the Successor Agency to the former Manteca Redevelopment Agency.
CFD 2023-1 VILLA TICINO WEST CUSTODIAL FUND
This fund is used to account for Community Facilities District 2023-1, Villa Ticino West, special assessment collections and debt service payments.
43 CITY OF MANTECA
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
Successor Agency
to the
Redevelopment CFD 2023-1
Agency Villa Ticino West
Private-Purpose Custodial
Trust Fund Fund
ASSETS
Cash and investments (Note 3) $9,808,615 $512,088
Restricted cash and investments (Note 3) 22,895 543,103 Capital assets, not being depreciated (Note 17C) 726,026 Capital assets, being depreciated (net) (Note 17C) 1,489,090 Total Assets 12,046,626 1,055,191
LIABILITIES
Accounts payable 19,635 6,700
Due to the County Auditor-Controller (Note 17E) 1,760,625 Interest payable 626,365 48,467
Refundable deposits 75,681
Long-term obligations (Note 17D):
Due in one year 4,385,000
Due in more than one year 83,151,408
Total Liabilities 89,943,033 130,848
NET POSITION (DEFICIT)
Held in trust for private purpose ($77,896,407)
Restricted for bondholders $924,343
See accompanying notes to basic financial statements
44 CITY OF MANTECA
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Successor Agency
to the
Redevelopment CFD 2023-1
Agency Villa Ticino West
Private-Purpose Custodial
Trust Fund Fund
ADDITIONS
Property taxes $5,861,798
Net investment income 338,672 $25,352
Charges for services 405,054
Contributions from property owners 5,806,373
Other revenue 25,000
Total additions 6,200,470 6,261,779
DEDUCTIONS
Financial services 4,980,725
Community development 254,138
Depreciation (Note 17C) 125,619
Interest and fiscal charges 2,298,780 356,711
Total deductions 2,678,537 5,337,436
CHANGE IN NET POSITION 3,521,933 924,343
NET POSITION (DEFICIT) HELD IN TRUST FOR PRIVATE
PURPOSE OR RESTRICTED FOR OTHER PURPOSES
Beginning of year (81,418,340)
End of year ($77,896,407) $924,343
See accompanying notes to basic financial statements
45 This Page Left Intentionally Blank
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 2024. 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. 47 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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. 48 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
RECREATION FUND - 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.
DEVELOPMENT SERVICES FUND - Established to record revenues and expenditures directly related to development services, including planning and building safety.
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.
STATE GASOLINE TAX FUND - 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.
GAS TAX SB1 FUND - 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 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. 49 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
The City also reports the following fund types:
Internal Service Funds. The funds account for vehicle, equipment 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. Custodial funds are used to account for assets held by the City for the Community Facilities District 2023-1. The financial activities of these 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.
50 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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. 51 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Compensated Absences
The liability for compensated absences includes the vested portions of vacation, sick leave and compensated time off, administrative leave and furlough for Safety. For governmental funds, a liability for these amounts is recorded only if they have matured, for example, as a result of employee resignations and retirements.
The remaining amounts are reported as a liability in the Statement of Net Position. Proprietary funds’ liability for compensated absences is recorded in each proprietary fund. The liability for compensated absences is determined annually.
Changes in compensated absences were as follows:
Beginning Balance $7,505,786
Additions 4,287,429
Payments (3,751,146)
Ending Balance $8,042,069
Current Portion $4,825,241
Compensated absences in enterprise funds are liquidated by the fund that has recorded the liability. The long-term portion of the governmental activities compensated absences is liquidated primarily by the General Fund.
H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The City has deferred outflows of resources related to pensions and Other Post-Employment Benefits (OPEB) as discussed in Notes 10 and 11.
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 and leases discussed in Note 14. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
52 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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 Payroll Tax Benefit Internal Service Fund was closed to the General Fund as of July 1, 2023.
The CFD 2023-1 Villa Ticino West Custodial Fund was established during fiscal year 2024 to account for Community Facilities District 2023-1, Villa Ticino West, special assessment collections and debt service payments.
53 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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:
Community Development Block Grant $28,224
Police Grants 20,753
Public Safety Sales Tax 91,788
Capital Improvement Funds:
Public Facilities Implementation Plan 4,093,364
Fire Facilities Fee 1,579
Special Apportionment Streets 77,262
54 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024 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 $421,456,828 Restricted cash and investments 19,115,747
Total City cash and investments of primary government 440,572,575 Cash and investments in Fiduciary Funds 10,320,703
Restricted cash and investments in Fiduciary Funds 565,998 Total cash and investments $451,459,276
Cash and investments as of June 30, 2024 consist of the following:
Cash on hand $2,550
Deposits with financial institutions 131,263,640
Investments 320,193,086
Total cash and investments $451,459,276
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. 55 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
56 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
57 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $19,768,916 $43,743,714 $63,512,630 Mortgage Pass Through Federal Agency Securities $3,931,429 5,845,952 5,586,619 $1,523,441 16,887,441 Medium Term Corporate Notes:
Callable 5,472,590 6,458,393 7,261,757 814,095 20,006,835 Non-Callable 1,133,540 8,170,155 6,806,022 16,109,717
Negotiable Certificates of Deposit 2,865,604 3,340,288 6,205,892 California Local Agency Investment Fund 69,294,077 69,294,077 Asset-Backed Securities 1,682,570 10,326,834 16,236,327 28,245,731 Municipal Bonds 1,055,760 379,109 1,434,869
California Asset Management Program 46,549,024 46,549,024 Money Market Mutual Funds (U.S. Securities) 44,168 44,168 Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 51,902,702 51,902,702 Total Investments $179,383,290 $45,170,699 $77,065,234 $18,573,863 $320,193,086 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, 2024, these investments have an average maturity of 217 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 b,y CAMP, which is the same as the value of the pool share in accordance with GASB 79 requirements. At June 30, 2024, the fair value was approximate to the City’s cost. At June 30, 2024, these investments had an average maturity of 38 days. 58 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, have a weighted average maturity of 6 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, 2024 for each investment type as provided by Standard and Poor’s investment rating system, except as noted.
Standard and Poor's Moody's
Investment Type AAAm/AAA AA+/AA/AA- A+/A/A- Aaa Aa1 A1/A2/A3 Total Held by City:
$16,887,441 $16,887,441
Medium Term Corporate Notes:
Callable 2,956,864 $18,414,433 $1,394,664 22,765,961
Non-Callable 5,529,564 7,197,872 623,155 13,350,591
Negotiable Certificates of Deposit 1,432,211 4,773,681 6,205,892 Asset-Backed Securities $19,872,413 $8,373,318 28,245,731 Municipal Bonds 677,060 $757,809 1,434,869
California Asset Management Program 46,549,024 46,549,024 Money Market Mutual Funds (U.S. Securities) 44,168 44,168 Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 51,902,702 51,902,702 Totals $118,368,307 $27,483,140 $30,385,986 $8,373,318 $757,809 $2,017,819 187,386,379 Not rated:
California Local Agency Investment Fund 69,294,077
Exempt from credit rating disclosure:
U.S. Treasury Notes 63,512,630
Total Investments $320,193,086
Mortgage Pass Through Federal Agency Securities
59 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024:
Level 1 Level 2 Total
Investments by Fair Value Level:
U.S. Treasury Notes $63,512,630 $63,512,630
Mortgage Pass Through Federal Agency Securities $16,887,441 16,887,441 Medium Term Corporate Notes 36,116,552 36,116,552
Negotiable Certificates of Deposit 6,205,892 6,205,892
Asset-Backed Securities 28,245,731 28,245,731
Municipal Bonds 1,434,869 1,434,869
Totals $63,512,630 $88,890,485 152,403,115
Investments Measured at Net Asset Value Per Share:
Held by City:
California Asset Management Program 46,549,024
Investments Measured at Amortized Cost:
Held by City:
Money Market Mutual Funds (U.S. Securities) 44,168
Held by Trustees:
Money Market Mutual Funds (U.S. Securities) 51,902,702
Investments Exempt from Fair Value Hierarchy:
California Local Agency Investment Fund 69,294,077
Total Investments $320,193,086
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.
60 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, the transfers were as follows:
Amount
Fund Receiving Transfers Fund Making Transfers Transferred Purpose Recreation Special Revenue Fund General Fund $1,400,000 A Non-Major Governmental Funds General Fund 680,070 A
Non-Major Governmental Funds 273,586 A
Water Enterprise Fund 582,557 A
Sewer Enterprise Fund 582,557 A
Sewer Enterprise Fund General Fund 441,696 B
Vehicle Internal Service Fund Non-Major Governmental Funds 45,000 A $4,005,466
A To fund operations
B 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, the Enterprise Funds transferred the following to Governmental Activities related to the closure of the Payroll Tax Benefit Internal Service Fund to the General Fund and the movement of compensated absences from the Internal Service Fund to the Enterprise Funds:
Water Enterprise Fund $543,649
Sewer Enterprise Fund 588,629
Solid Waste Enterprise Fund 498,411
Golf Enterprise Fund 97,435
Transit Enterprise Fund 33,247
Total $1,761,371
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, 2024, interfund balances were as follows:
Due From Funds Due To Funds Amount
General Fund Non-Major Governmental Funds $4,411,989
Transit Proprietary Fund 2,058,691
Total $6,470,680
61 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
C. Long-Term Interfund Advances
At June 30, 2024, 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
Capital Improvements Fund $1,081,780
Public Facilities Implementation Plan
Capital Improvements Fund Water Enterprise Fund 3,226,131 Sewer Enterprise Fund 7,571,497
Water Enterprise Fund Public Facilities Implementation Plan Capital Improvements Fund 180,280
Sewer Enterprise Fund 272,802
Sewer Enterprise Fund Public Facilities Implementation Plan Capital Improvements Fund 259,606
Water Enterprise Fund 86,961
Total Advances $12,679,057
Public Facilities Implementation Plan
Advances above in the amount of $12,679,057 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.
62 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024 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, 2024, these Notes totaled:
HOPE Shelter $1,370,455
Habitat for Humanity 10,000
Down Payment Assistance Program 1,251,700
Residential Rehabilitation 73,458
First-Time Homebuyer Program 60,000
Mid-Peninsula Housing Coalition 3,876,096
Eden Housing Inc. - Union Court Apartments 3,165,798
Eden Housing Inc. - Senior Housing 2,803,195
Manteca Senior Housing, LLC - Affirmed Housing 1,039,683 Senior Rehabilitation Loans 17,070
Manteca Atherton Associates - Juniper Apartments 14,445,926 Total notes receivable 28,113,381
Less: Allowance for conditional grants (928,323)
Net long-term notes receivable $27,185,058
In addition, the General Fund has recorded a loan receivable in the amount of $472,500 as discussed in Note 16D.
Unavailable revenue at June 30, 2024 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, 2024, HOPE had drawn down $1,206,037 of the available loan and no further drawdowns are expected. Interest accrued on the loan totaled $164,418 as of June 30, 2024. 63 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, loans related to this Program in the amount of $1,251,700 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, 2024, 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, 2024 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. Interest accrued on the loan totaled $1,376,096 as of June 30, 2024. 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. Interest accrued on the loan totaled $572,056 as of June 30, 2024.
64 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, Eden Housing had drawn down the loan in the amount of $1,680,932. Interest accrued on the loan totaled $1,122,263 as of June 30, 2024.
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, 2024, $750,000 has been drawn down from the loan, and all $2,000,000 of the grant has been drawn down. Interest accrued on the loan totaled $289,683 as of June 30, 2024.
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, 2024, 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, 2024 is $12,750,000. Interest accrued on the loan totaled $1,695,925 as of June 30, 2024. 65 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024 is $928,323.
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, 2024, 31 employees had notes totaling $41,525 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. 66 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 - CAPITAL ASSETS (Continued)
A. Capital Asset Additions and Retirements
Capital assets activities for the year ended June 30, 2024 were as follows:
Governmental activities
Balance at
June 30, 2023 Balance at
(As Restated) Additions Retirements Transfers June 30, 2024 Capital assets not being depreciated:
Land and improvements $63,066,804 $2,202,200 $65,269,004 Subscription assets in progress 109,305 955,607 1,064,912 Construction in progress 32,216,569 5,358,609 37,575,178 Total capital assets not being depreciated 95,392,678 8,516,416 103,909,094 Capital assets being depreciated:
Buildings and improvements 36,759,077 38,735 36,797,812 Intangible right-to-use building 634,944 634,944
Machinery and equipment 28,716,015 1,169,033 ($1,357,361) 28,527,687 Intangible right-to-use equipment 28,661 28,661
Storm drain 68,923,722 4,064,834 72,988,556
Streets 331,865,345 27,586,491 359,451,836
Parks 79,998,483 2,607,332 82,605,815
Subscription assets 1,399,894 446,372 (36,181) 1,810,085 Total capital assets being depreciated 548,326,141 35,912,797 (1,393,542) 582,845,396 Less accumulated depreciation for:
Buildings and improvements (14,581,254) (1,049,927) (15,631,181) Intangible right-to-use building (324,228) (162,114) (486,342) Machinery and equipment (21,150,451) (2,290,487) 1,152,322 (22,288,616) Intangible right-to-use equipment (12,526) (8,510) (21,036) Storm drain (19,296,114) (1,358,650) (20,654,764)
Streets (111,573,877) (10,635,076) (122,208,953)
Parks (35,374,356) (2,555,708) (37,930,064)
Subscription assets (280,160) (325,356) 36,181 (569,335) Total accumulated depreciation (202,592,966) (18,385,828) 1,188,503 (219,790,291) Net capital assets being depreciated 345,733,175 17,526,969 (205,039) 363,055,105 Governmental activity capital assets, net $441,125,853 $26,043,385 ($205,039) $466,964,199 67 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 - CAPITAL ASSETS (Continued)
Business-type activities Balance at
June 30, 2023 Balance at
(As Restated) Additions Retirements Transfers June 30, 2024 Capital assets not being depreciated:
Land and improvements $4,394,232 $4,394,232
Construction in progress 27,092,911 $4,021,723 ($20,605,583) 10,509,051 Total capital assets not being depreciated 31,487,143 4,021,723 (20,605,583) 14,903,283 Capital assets being depreciated:
Sewer lines and improvements 76,584,514 4,435,330 19,986,815 101,006,659 Water wells, pipelines and water rights 152,733,051 3,225,123 155,958,174 Buildings and improvements 18,564,197 2,155,314 20,719,511 Intangible right-to-use building 21,922 21,922
Machinery and equipment 31,260,621 2,813,639 ($574,529) 618,768 34,118,499 Intangible right-to-use equipment 23,487 23,487
Infrastructure 165,424 165,424
Sewer plant expansion 128,914,748 128,914,748
Total capital assets being depreciated 408,267,964 12,629,406 (574,529) 20,605,583 440,928,424 Less accumulated depreciation for:
Sewer lines and improvements (26,670,492) (1,401,880) (28,072,372) Water wells, pipelines and water rights (67,698,033) (3,877,093) (71,575,126) Buildings and improvements (9,472,364) (553,357) (10,025,721) Intangible right-to-use building (13,396) (7,308) (20,704) Machinery and equipment (22,003,172) (3,141,352) 574,529 (24,569,995) Intangible right-to-use equipment (8,677) (4,697) (13,374) Infrastructure (80,931) (6,567) (87,498)
Sewer plant expansion (34,558,037) (2,504,607) (37,062,644) Total accumulated depreciation (160,505,102) (11,496,861) 574,529 (171,427,434) Net capital assets being depreciated 247,762,862 1,132,545 20,605,583 269,500,990 Total Business-type activity capital assets, net $279,250,005 $5,154,268 $284,404,273 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.
68 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $191,273
Community development 291,680
Public safety 1,951,885
Public works 2,112,202
Parks and recreation 2,839,714
Streets and highways 10,600,212
Internal Service Funds 398,862
Total Governmental Activities $18,385,828
Business-Type Activities
Water $4,316,776
Sewer 4,848,906
Solid waste 1,780,994
Golf 69,778
Transit 480,407
Total Business-Type Activities $11,496,861
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, 2023 Retirements June 30, 2024 Portion
Business-type Activity Debt:
Sewer Revenue Bonds
Series 2009 Bonds, 4.875-5.75% $19,000,000 $19,000,000 $19,000,000 $560,000 Series 2012 Refunding Bonds, 2.00 - 4.00% 22,690,000 9,510,000 $1,895,000 7,615,000 640,000 Net premium 1,639,830 84,094 1,555,736
Water Revenue Bonds
Series 2012 Refunding Bonds, 2.00 - 5.00% 35,840,000 23,160,000 1,630,000 21,530,000 1,710,000 Net premium 3,769,255 193,316 3,575,939
Total Business - Type Activity Debt $77,530,000 $57,079,085 $3,802,410 $53,276,675 $2,910,000 69 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $37,605,941. The Sewer Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $3,286,016 and $8,570,356, 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.
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 $27,344,750. The Water Enterprise Fund’s principal and interest paid for the current year and total customer net revenues were $2,747,250 and $7,157,855, respectively. 70 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – LONG TERM DEBT (Continued)
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
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 3,725,000 1,734,944
2030-2034 21,560,000 5,663,366
2035-2037 10,035,000 887,079
Total 48,145,000 $16,805,691
Plus: Bond Premiums 5,131,675
Gross Long Term Debt $53,276,675
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.
F. Special Assessment District Bonds
Special Assessment Districts (Districts) within the City have issued debt under the Mello-Roos Community Facilities Act of 1982 to finance infrastructure improvements and facilities within the boundaries of the Districts. The City is the collecting and paying agent for the debt issued by the Districts but has no direct or contingent liability or moral obligation for the payment of the debt. Therefore, debt issued by the Districts is not included in long term debt of the City.
The outstanding balance of the issues at June 30, 2024 is:
Special Assessment Debt with no Issue Maturity Outstanding at Governmental Commitment Year Year June 30, 2024
Villa Ticino West Community Facilities
District No. 2023-1, Series 2024 2024 2055 $5,825,000
71 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
72 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, are below:
Special Revenue
Low and
Moderate Homeless
General Income Navigation Development
Fund Balance Classifications Fund Housing Assets Center Recreation Services Nonspendable:
Items not in spendable form:
Advance to other funds $1,081,780
Prepaids and deposits 4,124
Total Nonspendable
Fund Balances 1,085,904
Restricted for:
Health Reimbursement Arrangement 427,774
Low and Moderate Income Housing Projects $924,434
Transportation Projects
Development Services Projects $17,954,594
Engineering Services
Public Safety Projects
Parks Projects
Major Equipment Purchases
Landscaping and Lighting Projects
City and Public Facilities Projects
Flood Protection Projects
Recreation $1,177,931
Total Restricted Fund Balances 427,774 924,434 1,177,931 17,954,594 Committed to:
Innovation and Technology Projects
Assigned to:
Fiscal Stability 18,231,755
Pension 3,646,351
Economic Development 2,500,000
Public Facilities Oversizing 3,164,815
Capital Facilities 1,500,000
Technology 1,500,000
Total Assigned Fund Balances 30,542,921
Unassigned:
General Fund 15,591,035
Fund balance deficits ($83,820)
Total Unassigned Fund Balances 15,591,035 (83,820)
Total Fund Balances $47,647,634 $924,434 ($83,820) $1,177,931 $17,954,594 (Continued)
73 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Capital Improvement
Public
Facilities State Other
Implementation Gasoline Gas Tax Governmental
Fund Balance Classifications Plan Tax SB1 Funds Total
Nonspendable:
Items not in spendable form:
Advance to other funds $1,081,780
Prepaids and deposits 4,124
Total Nonspendable
Fund Balances 1,085,904
Restricted for:
Health Reimbursement Arrangement 427,774
Low and Moderate Income Housing Projects 924,434
Transportation Projects $1,234,323 $7,091,340 $29,686,465 38,012,128 Development Services Projects 10,922,029 28,876,623
Engineering Services 4,108,171 4,108,171
Public Safety Projects 6,685,261 6,685,261
Parks Projects 24,119,558 24,119,558
Major Equipment Purchases 1,687,946 1,687,946
Landscaping and Lighting Projects 2,055,371 2,055,371
City and Public Facilities Projects $51,523,602 54,339,444 105,863,046 Flood Protection Projects 31,073 31,073
Recreation 1,177,931
Total Restricted Fund Balances 51,523,602 1,234,323 7,091,340 133,635,318 213,969,316 Committed to:
Innovation and Technology Projects 303,025 303,025
Assigned to:
Fiscal Stability 18,231,755
Pension 3,646,351
Economic Development 2,500,000
Public Facilities Oversizing 3,164,815
Capital Facilities 2,952,404 4,452,404
Technology 1,500,000
Total Assigned Fund Balances 2,952,404 33,495,325
Unassigned:
General Fund 15,591,035
Fund balance deficits (94,103) (177,923)
Total Unassigned Fund Balances (94,103) 15,413,112
Total Fund Balances $51,523,602 $1,234,323 $7,091,340 $136,796,644 $264,266,682 74 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
75 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
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.
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.
76 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
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.
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, 2024, which are reported within the assigned fund balance of the General Fund follows:
Minimum or Reserve
Maximum as of
Reserve June 30, 2024
General Fund:
Assigned Fund Balance:
Fiscal Stability $18,231,755 $18,231,755
Pension Stabilization 3,646,351 3,646,351
Economic Development 2,500,000 2,500,000
Public Facilities Oversizing 3,164,815 3,164,815
Capital Facilities 1,500,000 1,500,000
Technology 1,500,000 1,500,000
Total Assigned Fund Balance $30,542,921
77 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
78 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
D. Deficit Fund Balances and Accumulated Deficits
At June 30 2024, the Homeless Navigation Center Special Revenue Fund and the Community Development Block Grant Special Revenue Fund, had deficit fund balances of $83,820, $94,103, respectively, and Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund and the Equipment Internal Service Fund had deficit net position of $77,896,407 and $299,603, respectively.
E. Adjustments and Restatements
Adjustments to and Restatements of Beginning Balances during fiscal year 2024, changes to or within the financial reporting entity, and an error correction, resulted in adjustments to and restatements of beginning net position and fund net position, as follows:
Change to or Change to or
within the within the Change in Change in
Financial Financial Accounting Accounting
June 30, 2023 Reporting Reporting Principle Principle Error As Previously Entity Entity (OPEB (Loans Correction June 30, 2023 Reported (Major Funds) (Fund Change) Allocation) Receivable) (Depreciation) As Restated Government-Wide
Governmental Activities $603,597,824 ($4,473,123) $4,923,451 $331,655 $604,379,807 Business-Type Activities 296,288,326 4,473,123 (331,655) 300,429,794 Total Primary Government $899,886,150 $4,923,451 $904,809,601 Governmental Funds
Major Funds:
General Fund $40,508,130 $6,951,182 $47,459,312
Low and Moderate Income Housing Assets 720,122 720,122
Homeless Navigation Center (83,820) (83,820)
Special Apportionment Streets (6,599,737) $6,599,737
Recreation 338,826 338,826
Development Services 13,671,528 13,671,528
Public Facilities Implementation Plan 46,643,087 46,643,087 State Gasoline Tax 1,945,951 1,945,951
Gas Tax SB1 5,724,348 5,724,348
Nonmajor Funds 136,697,047 (28,280,390) 108,416,657
Total Governmental Funds $217,884,829 $6,951,182 $224,836,011 Proprietary Funds
Major Funds:
Water Enterprise Fund $103,292,172 $1,056,551 $104,348,723 Sewer Enterprise Fund 185,827,025 2,049,753 187,876,778 Solid Waste Enterprise Fund 473,524 217,447 690,971
Golf Enterprise Fund 745,235 (326,557) 418,678
Transit Enterprise Fund 5,950,370 1,475,929 ($331,655) 7,094,644 Nonmajor Funds 3,342,796 $554,604 489,835 4,387,235
Total Proprietary Funds $299,631,122 $554,604 $4,962,958 ($331,655) $304,817,029 79 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
In addition to the changes within the financial reporting entity to move certain funds from non-major funds to major funds and from major funds to nonmajor funds noted above, the City made the following adjustments and restatements:
Change Within the Financial Reporting Entity – Fund Change – The City closed the Payroll Tax Benefit Internal Service Fund to the General Fund as of July 1, 2023. Although the fund’s net position was a deficit of $554,604 as of June 30, 2023, with that change, compensated absences of $7,505,786 were transferred to governmental activities, and the remaining assets and liabilities netting to $6,951,182 were transferred to the General Fund. The change in accounting policy was recorded as a restatement of fund balance in the General Fund as of July 1, 2023.
Change in Accounting Principle – OPEB Allocation – During fiscal year 2024, the City changed its accounting policy related to the allocation of Other Post-Employment Benefits (OPEB) related balances.
Effective July 1, 2023, the OPEB-related balances in the Governmental Activities, Enterprise Funds and the Equipment and Insurance Internal Service Funds were adjusted. The change in accounting policy was recorded as a restatement as of July 1, 2023 in the statement of net position.
Change in Accounting Principle – Loans Receivable – During fiscal year 2024, the City also changed its accounting policy related to the accounting for long-term loans receivable in governmental funds. Effective July 1, 2023, accrued interest receivable on all long-term loans receivable has been recorded and is offset with unavailable revenue. As a result of the change in accounting policy, the City established unavailable revenue of $4,923,451 in the Low and Moderate Income Housing Assets Special Revenue Fund. The change in accounting policy was recorded as a restatement as of July 1, 2023 in the statement of net position.
Error Correction – During fiscal year 2024, the City discovered that the prior year transfer of capital assets in the amount of $331,655 from Governmental Activities to the Transit Enterprise Fund should have included depreciation expense and accumulated depreciation in that same amount. The correction has been recorded as a restatement of net position as of July 1, 2023 in the statements of net position. 80 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, total pension expense for the Miscellaneous, Safety and PARS Retirement Enhancement plans amounted to $23,926,026.
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 $21,593,520 $71,470,740
Safety - Police and Fire 31,483,285 77,124,746 $2,098,627 PARS Retirement Enhancement Plan 454,474 813,259
Total $53,531,279 $149,408,745 $2,098,627
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.
81 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
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, 2024, 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% 7.75%
Required employer contribution rates 12.360% 12.360% 12.360% Required UAL Contribution $5,848,910
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 $5,848,910 in fiscal year 2024, which was made under the lump sum payment option.
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, 2022 and as of the measurement date of June 30, 2023:
Miscellaneous
June 30, 2022 June 30, 2023
Inactive employees or beneficiaries currently receiving benefits 314 328 Inactive employees entitled to but not yet receiving benefits 292 328 Active employees 306 308
Total 912 964
As of June 30, 2024, the City had 329 active employees in the Miscellaneous Plan. 82 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for 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, 2023, using an annual actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023 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, 2022 (Measurement Date) $214,925,723 $145,994,035 $68,931,688 Changes in the year:
Service cost 4,559,169 4,559,169
Interest on the total pension liability 14,813,753 14,813,753 Differences between actual and expected experience 2,496,481 2,496,481 Changes in assumptions
Changes in benefit terms 231,820 231,820
Net Plan to Plan Resource Movement
Contribution - employer 8,681,655 (8,681,655)
Contribution - employees 1,861,766 (1,861,766)
Net investment income 9,126,107 (9,126,107)
Administrative expenses (107,357) 107,357
Benefit payments, including refunds of employee
contributions (10,483,075) (10,483,075)
Other Miscellaneous Income/ (Expense)
Net changes 11,618,148 9,079,096 2,539,052
Balance at June 30, 2023 (Measurement Date) $226,543,871 $155,073,131 $71,470,740 83 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $102,650,466
Current Discount Rate 6.90%
Net Pension Liability $71,470,740
1% Increase 7.90%
Net Pension Liability $45,894,171
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2024, the City recognized pension expense of $12,427,803. At June 30, 2024, 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 $9,070,568 Differences between actual and expected experience 2,188,185 Changes in assumptions 3,401,110
Net differences between projected and actual earnings
on plan investments 6,933,657
Total $21,593,520 $0
The Miscellaneous Plan reported $9,070,568 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, 2025. 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
2025 $4,027,471
2026 2,940,317
2027 5,367,286
2028 187,878
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 84 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, 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 29.090% 24.790% 14.500% Required UAL Contribution $3,163,795 $0 $0
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% 14.50%
Required employer contribution rates 26.110% 14.500%
Required UAL Contribution $2,145,054 $0
Police
85 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $5,308,849 in fiscal year 2024, 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, 2024, the contributions to the Safety Plan were as follows:
Contributions - employer $8,917,736
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, 2024, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan in the amount of $77,124,746.
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, 2023, 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, 2022, rolled forward to June 30, 2023 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, 2022 and 2023 was as follows:
Total
Proportion - June 30, 2022 1.05081%
Proportion - June 30, 2023 1.03178%
Change - Increase (Decrease) -0.01903%
86 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
For the year ended June 30, 2024, the City recognized pension expense of $11,443,795 for the Safety Plan. At June 30, 2024, 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 $8,917,736 Differences between actual and expected experience 5,662,378 ($484,759) Changes in assumptions 4,501,103
Net differences between projected and actual earnings on plan investments 10,554,501
Change in proportion and differences between actual
contributions and proportionate share of contributions 1,847,567 (1,613,868) Total $31,483,285 ($2,098,627)
The Safety Plan reported $8,917,736 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, 2025. 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
2025 $6,505,191
2026 4,705,214
2027 8,961,921
2028 294,596
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 $108,390,423
Current Discount Rate 6.90%
Net Pension Liability $77,124,746
1% Increase 7.90%
Net Pension Liability $51,562,830
Actuarial assumptions and information regarding the discount rate are discussed in Note 10D below. 87 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
D. Information Common to the Miscellaneous and Safety Plans Actuarial Assumptions – For the measurement period ended June 30, 2023, the total pension liabilities were determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions:
Miscellaneous and Safety (Fire and Police)
Valuation Date June 30, 2022
Measurement Date June 30, 2023
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, 2022 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.
Discount Rate – The discount rate used to measure the total pension liability for each 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, each 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. 88 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 89 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
E. PARS Supplemental Retirement Plan
Benefits Provided - Effective October 1, 2001, the City contracted with the Public Agency Retirement System (PARS), to sponsor a supplemental Retirement Enhancement Plan created in accordance with IRC Section 401(a), which is a qualified agent multiple-employer defined benefit pension plan covering all eligible employees of the City. All eligible employees covered by this plan are fully vested. The Plan is closed to new participants. Eligibility requirements are shown in the table below:
Eligibility Tier I Tier II Tier III Tier IV
City Manager prior to December 31, 2004 X
Department Head prior to December 31, 2004 X
City Manager on or after December 31, 2004 X
Department Head on or after December 31, 2004 X
At least 55 years of age X X X X
5 years of continuous service X X
10 years of continuous service X X
Terminated with City and concurrently retired under
CalPERS under a regular service retirement on or after
October 1, 2002 XXXX
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. 90 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
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, 2023 measurement- 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, 2024.
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 $338,000 to the Plan during the fiscal year ended June 30, 2024.
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, 2023. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
91 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2023, the total pension liability was determined using an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023 using standard update procedures. 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, 2023
Actuarial Cost Method Entry-Age Normal, Level % of pay
Amortization method Level dollar amount
Amortization period 5-year fixed period for 2023/24
Actuarial Assumptions:
Discount Rate 3.20% at June 30, 2022 and 3.20% at June 30, 2023 Inflation 2.50%
Investment Rate of Return 3.20% at June 30, 2022 and 3.20% at June 30, 2023 Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Scale Post - retirement mortality projected fully generational with 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.
92 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2023 Measurement Date follows:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2022 (Measurement Date) $2,988,676 $1,880,221 $1,108,455 Changes in the year:
Service cost
Interest on the total pension liability 92,912 92,912
Differences between actual and expected experience
Changes in assumptions
Changes in benefit terms
Contribution - employer 330,000 (330,000)
Contribution - employee
Net investment income 66,640 (66,640)
Administrative expenses (8,532) 8,532
Benefit payments, including refunds of employee
contributions (170,363) (170,363)
Net changes (77,451) 217,745 (295,196)
Balance at June 30, 2023 (Measurement Date) $2,911,225 $2,097,966 $813,259 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 $1,162,002
Current Discount Rate 3.20%
Net Pension Liability $813,259
1% Increase 4.20%
Net Pension Liability $521,848
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued PARS financial report. 93 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – PENSION PLANS (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - For the year ended June 30, 2024, the City recognized pension expense of $54,428 for the Plan. At June 30, 2024, 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 $338,000 Differences between actual and expected experience 116,474 Changes in assumptions
Net differences between projected and actual earnings on plan investments
Total $454,474 $0
The Plan reported $338,000 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, 2025. 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
2025 $26,560
2026 31,709
2027 58,732
2028 (527)
PARS
94 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – OTHER POST-EMPLOYMENT HEALTHCARE 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, 2024, there were 228 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, 2024:
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 $157 $157 $157 $157 $157 $157 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, 2024, the City’s contributions to the Plan were $2,002,773. 95 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS (Continued) Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2023:
Active employees 452
Inactive employees or beneficiaries currently
receiving benefit payments 227
Inactive employees entitled to but not yet
receiving benefit payments 56
Total 735
B. Total OPEB Liability
Actuarial Methods and Assumptions – The City’s total OPEB liability was measured as of June 30, 2023 and the total OPEB liability was determined by an actuarial valuation dated June 30, 2022, rolled forward to June 30, 2023 using standard update procedures, based on the following actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Assumptions:
Discount Rate 3.65% at June 30, 2023 and 3.54% at June 30, 2022 (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 (NonKaiser) - 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.
96 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS (Continued) Change in Assumptions – The discount rate increased from 3.54% at June 30, 2022, to 3.65% at June 30, 2023, based on the municipal bond rate as of the measurement date.
C. Changes in Total OPEB Liability
The changes in the total OPEB liability follows:
Total OPEB
Liability
Balance at June 30, 2022 Measurement Date $37,857,264
Changes Recognized for the Measurement Period:
Service cost 1,126,902
Interest on the total OPEB liability 1,345,035
Changes of assumptions (474,103)
Actual vs. expected experience 0
Benefit payments * (1,977,631)
Net changes 20,203
Balance at June 30, 2023 Measurement Date $37,877,467
* Includes $1,468,631 cash benefit payments and $509,000 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%
(2.65%) (3.65%) (4.65%)
$42,574,467 $37,877,467 $33,977,418
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
$36,413,461 $37,877,467 $39,887,672
97 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 11 – OTHER POST-EMPLOYMENT HEALTHCARE BENEFITS (Continued) E. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $2,440,035. At June 30, 2024, 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 $2,002,773 Differences between actual and expected experience 1,025,398 ($56,633) Changes of assumptions 3,535,282 (6,621,975)
Total $6,563,453 ($6,678,608)
$2,002,773 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, 2025.
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
2025 ($39,205)
2026 23,452
2027 110,311
2028 (290,906)
2029 (911,316)
Thereafter (1,010,264)
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:
98 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024 totaled $950,849. 99 CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
100
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2022 $639,568 $869,534 $1,509,102
Net change in:
Liability for current fiscal year claims 83,968 83,968
Liability for prior fiscal 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
Net change in:
Liability for current fiscal year claims 93,880 93,880
Liability for prior years' claims and
claims incurred but not reported (IBNR) (21,055) 179,189 158,134 Claims paid (21,127) (496,942) (518,069)
Balance June 30, 2024 $734,368 $615,219 $1,349,587
Claims liability, due within one year $687,702 $615,219 $1,302,921 For the fiscal years ended June 30, 2024, 2023, and 2022 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. 101
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
102
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – LEASES (Continued)
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2024 were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
Communication Site Leases $575,079 $547,201
Business-Type Activities
Leases Receivable (Lessor)
Building Leases 2,256,276 2,273,705
Total Leases Receivable $2,831,355 $2,820,906
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, 2024, 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, 2024, the leases had 1 to 13 years remaining. The City recognized $81,342 in lease revenue and $1,253 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, 2024, the City had four leases, with original lease terms of ten to twenty years, including the optional extension periods. The City recognized $83,342 in lease revenue and $0 in interest revenue during the current fiscal year related to these leases.
103
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – LEASES (Continued)
C. Leases Payable
A summary of lease transactions for the fiscal year ended June 30, 2024, are as follows:
Balance Balance Current
June 30, 2023 Deductions June 30, 2024 Portion
Governmental Activities:
Building - Hensley $321,188 $165,039 $156,149 $156,148
Equipment 15,741 8,517 7,224 5,643
Total Governmental Activities $336,929 $173,556 $163,373 $161,791 Business-Type Activities:
Building - Mobile Modular $8,548 $7,325 $1,223 $1,223
Equipment 14,153 4,692 9,461 4,718
Total Business-Type Activities $22,701 $12,017 $10,684 $5,941 Total Leases Payable $359,630 $185,573 $174,057 $167,732 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, 2024, the value of the lease liability was $156,149. 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 $486,342.
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, 2024, the value of the lease liability was $4,070. 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 $16,578.
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, 2024, the value of the lease liability was $12,617. 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 $17,832.
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, 2024, the value of the lease liability was $1,223. 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 $20,704.
104
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – LEASES (Continued)
The future principal and interest lease payments as of June 30, 2024, were as follows:
Governmental Activities Business-Type Activities
Year Ending Principal Interest Principal Interest
June 30 Payments Payments Total Payments Payments Total 2025 $161,791 $378 $162,169 $5,941 $44 $5,985
2026 1,582 6 1,588 4,743 17 4,760
$163,373 $384 $163,757 $10,684 $61 $10,745
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 2024, payments made to the developer under the agreement were $327,246 and payments to date total $4,651,821.
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. 105
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, are as follows:
Balance Balance Current
June 30, 2023 Additions Deductions June 30, 2024 Portion Governmental Activities:
Subscription Liabilities
FloQast $22,997 $22,997
Axon 33,841 $417,321 104,175 $346,987 $96,687
LCT Applications and Platforms 46,554 11,175 35,379 11,479 DebtBook SaaS Application 29,051 8,000 21,051 9,389
Microsoft Enterprise 921,074 221,745 699,329 227,333
NextRequest 47,327 7,405 39,922 7,592
Total Subscription Liabilities $1,071,793 $446,372 $375,497 $1,142,668 $352,480 As of June 30, 2024, the City had six active subscriptions. The subscriptions have annual payments that range from $7,592 to $244,956 and interest rates that range from 2.1843% to 3.2380%. As of June 30, 2024, the total combined value of the subscription liability was $1,142,668. The combined value of the right to use subscription assets as of the end of the current fiscal year was $1,810,085 and had accumulated amortization of $569,335. In addition, the City had two subscriptions in process that is effective in fiscal year 2025 and the costs incurred to date on that agreement have been recorded as subscription assets in progress in the amount of $1,064,912 as of June 30, 2024.
The future principal and interest subscription liability payments as of June 30, 2024 for the active subscriptions, were as follows:
Governmental Activities
Year Ending Principal Interest
June 30 Payments Payments Total
2025 $352,480 $28,454 $380,934
2026 345,766 19,337 365,103
2027 342,441 11,003 353,444
2028 93,594 2,460 96,054
2029 8,387 211 8,598
$1,142,668 $61,465 $1,204,133
106
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, the City had outstanding reimbursement commitments totaling $28,588,039.
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. 107
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $3,154,377 was paid to the Developer during fiscal year 2024 and $10,121,092 has been paid to date. As of June 30, 2024, the deferred fees due from the developer total $7,633,809, 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 $472,500 as of June 30, 2024.
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 2024, payments made to the developer under the agreement were $147,372 and payments to date total $455,943. 108
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 16 – COMMITMENTS AND CONTINGENCIES (Continued)
F. Construction Commitments
The City has the outstanding construction commitments totaling $17,829,269 as of June 30, 2024.
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.
109
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 Improvement Fund totaling $43,670,205 to the Successor Agency. The City made the transfer during fiscal year 2013. 110
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024 are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2024.
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, 2024 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
111
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, 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, 2024, 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.
112
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 17 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Capital assets recorded as of June 30, 2024 comprise:
Balance at Balance at
June 30, 2023 Additions June 30, 2024
Capital assets not being depreciated:
Land $726,026 $726,026
Capital assets being depreciated:
Buildings and improvements 3,788,211 3,788,211
Less accumulated depreciation (2,173,502) ($125,619) (2,299,121) Net capital assets being depreciated 1,614,709 (125,619) 1,489,090 Capital assets, net $2,340,735 ($125,619) $2,215,116
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, 2023 Retirements June 30, 2024 Portion
Redevelopment Agency Tax
Allocation Bonds -
Tax Allocation Refunding Bonds Series 2020A and 2020B
Subordinated Tax Allocation Bonds 1.590-4.0% $87,500,000 $4,315,000 $83,185,000 $4,385,000 Plus: Unamortized Bond Premium 4,586,619 235,211 4,351,408 Total Successor Agency Debt $92,086,619 $4,550,211 $87,536,408 $4,385,000 113
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $111,267,136 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 2024 calculated by the County AuditorController was $26,041,599 and the total received by the Successor Agency for fiscal year 2024 debt service was $5,861,798, which the Agency used, along with cash on hand, to pay the $6,866,099 of fiscal year debt service.
3. Debt Service Requirements
Annual debt service requirements, are shown below:
For the Year
Ending June 30 Principal Interest
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 4,725,000 2,005,452
2030-2034 25,595,000 6,566,512
2035-2039 22,345,000 4,161,570
2040-2043 12,545,000 3,714,272
Total 83,185,000 $25,660,403
Plus Bond Premium 4,351,408
Gross Long Term Debt $87,536,408
114
CITY OF MANTECA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024.
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 231,820
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 4,233,952 8,234,336 17,834,615 Total pension liability - beginning 127,434,003 134,576,742 138,810,694 146,813,210 Total pension liability - ending (a) $134,576,742 $138,810,694 $147,045,030 $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 $41,449,133 $49,324,936 $56,377,217 Plan fiduciary net position as a percentage of the total pension liability 71.04% 70.14% 66.46% 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% 271.61% 309.88% 343.33% Notes to Schedule:
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, 2021 and 2023 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
118
REQUIRED SUPPLEMENTARY INFORMATION
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 $3,450,233 $3,662,753 $3,713,864 $3,711,204 $4,302,617 $4,559,169 11,413,314 12,088,271 12,825,762 13,444,999 14,048,114 14,813,753 (1,730,389) 2,008,072 2,643,438 886,800 346,337 2,496,481 (1,373,783) 7,180,122
231,820
(7,283,995) (7,791,837) (8,419,092) (9,109,794) (9,739,112) (10,483,075) 4,475,380 9,967,259 10,763,972 8,933,209 16,138,078 11,618,148 164,647,825 169,123,205 179,090,464 189,854,436 198,787,645 214,925,723 $169,123,205 $179,090,464 $189,854,436 $198,787,645 $214,925,723 $226,543,871 $5,489,151 $5,845,005 $6,475,687 $6,960,408 $7,828,674 $8,681,655 1,484,945 1,613,156 1,571,752 1,533,922 1,651,472 1,861,766 9,098,992 7,772,814 6,213,521 29,607,098 (12,103,385) 9,126,107 (269) (218) (572)
(168,715) (83,187) (174,706) (129,456) (98,708) (107,357) (320,393) 269
(7,283,995) (7,791,837) (8,419,092) (9,109,794) (9,739,112) (10,483,075) 8,299,716 7,356,002 5,667,162 28,861,606 (12,461,059) 9,079,096 108,270,608 116,570,324 123,926,326 129,593,488 158,455,094 145,994,035 $116,570,324 $123,926,326 $129,593,488 $158,455,094 $145,994,035 $155,073,131 $52,552,881 $55,164,138 $60,260,948 $40,332,551 $68,931,688 $71,470,740
68.93% 69.20% 68.26% 79.71% 67.93% 68.45%
$17,179,599 $20,193,041 $21,471,907 $20,618,181 $22,822,694 $24,809,517 305.90% 273.18% 280.65% 195.62% 302.03% 288.08%
119
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 2024 Actuarially determined contribution $6,477,118 $7,061,971 $7,838,893 $8,561,953 $9,070,568 Contributions in relation to the actuarially determined contributions (6,477,118) (7,061,971) (7,838,893) (8,561,953) (9,070,568) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $21,471,907 $20,618,181 $22,822,694 $24,809,517 $26,212,038 Contributions as a percentage of covered payroll 30.17% 34.25% 34.35% 34.51% 34.60% Valuation date: 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Notes to Schedule
Valuation date: 6/30/2022
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 and 2024 Salary increases Varies by Entry Age and Service
Investment rate of return
Retirement age
Mortality Rate Table
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 MP2016 published by the Society of Actuaries. For 2023 and 2024, preretirement and post-retirement 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 and 2024, net of
administrative expenses, including inflation
120
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 6/30/2023
Plan's proportion of the Net Pension Liability (Asset) 0.95585% 0.95974% 1.27699% 1.05081% 1.03178% Plan's proportion share of the Net Pension Liability (Asset) $59,669,242 $63,941,257 $44,815,713 $72,207,303 $77,124,746 Plan's Covered Payroll 14,330,518 17,965,730 15,113,158 15,917,533 16,945,456 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% 455.14% Plan's Fiduciary Net Position as a Percentage of the
Plan's Total Pension Liability 75.26% 75.10% 88.29% 76.68% 76.21% 121
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 2024
Actuarially determined contribution $6,571,899 $7,215,323 $7,786,074 $8,516,327 $8,917,736 Contributions in relation to the actuarially
determined contributions (6,571,899) (7,215,323) ($7,786,074) (8,516,327) (8,917,736) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $17,965,730 $15,113,158 $15,917,533 $16,945,456 $17,700,510 Contributions as a percentage of covered
payroll 36.58% 51.52% 48.92% 50.26% 50.38%
122
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 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
Differences between expected and actual experience 53,000 47,056 Changes in assumptions 659,042 86,000
Changes in benefits
Benefit payments, including refunds of employee contributions (97,000) (99,000) (112,000) (137,000) (139,237) Net change in total pension liability 50,000 58,000 161,000 6,000 710,583 Total pension liability - beginning 2,295,000 2,237,000 2,345,000 2,506,000 2,512,000 Total pension liability - ending (a) $2,295,000 $2,345,000 $2,506,000 $2,512,000 $3,222,583 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 Administrative expenses (7,000) (7,000) (8,000) (8,000) (9,143) Benefit payments, including refunds of employee contributions (97,000) (99,000) (112,000) (137,000) (139,237) Net change in plan fiduciary net position 210,000 160,000 201,000 174,000 304,747 Plan fiduciary net position - beginning 1,289,000 1,499,000 1,659,000 1,860,000 2,034,000 Plan fiduciary net position - ending (b) $1,499,000 $1,659,000 $1,860,000 $2,034,000 $2,338,747 Net pension liability - ending (a)-(b) $796,000 $686,000 $646,000 $478,000 $883,836 Plan fiduciary net position as a percentage of the total pension liability 65.32% 70.75% 74.22% 80.97% 72.57% Covered payroll $635,597 $653,039 $586,464 $182,068 $186,997 Net pension liability as percentage of covered payroll 125.24% 105.05% 110.15% 262.54% 472.65% Measurement Date 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 Total Pension Liability
Service Cost
Interest $107,078 $108,975 $102,103 $93,001 $92,912
Differences between expected and actual experience (83,407) 53,376 Changes in assumptions (75,860) (54,339) 133,365 19,556 Changes in benefits
Benefit payments, including refunds of employee contributions (146,447) (160,537) (163,748) (167,023) (170,363) Net change in total pension liability (115,229) (189,308) 71,720 (1,090) (77,451) Total pension liability - beginning 3,222,583 3,107,354 2,918,046 2,989,766 2,988,676 Total pension liability - ending (a) $3,107,354 $2,918,046 $2,989,766 $2,988,676 $2,911,225 Plan fiduciary net position
Contributions - employer $330,000
Contributions - employee
Net investment income $124,714 $105,737 $212,741 ($226,244) 66,640 Administrative expenses (9,920) (9,649) (9,360) (8,790) (8,532) Benefit payments, including refunds of employee contributions (146,447) (160,537) (163,748) (167,023) (170,363) Net change in plan fiduciary net position (31,653) (64,449) 39,633 (402,057) 217,745 Plan fiduciary net position - beginning 2,338,747 2,307,094 2,242,645 2,282,278 1,880,221 Plan fiduciary net position - ending (b) $2,307,094 $2,242,645 $2,282,278 $1,880,221 $2,097,966 Net pension liability - ending (a)-(b) $800,260 $675,401 $707,488 $1,108,455 $813,259 Plan fiduciary net position as a percentage of the total pension liability 74.25% 76.85% 76.34% 62.91% 72.06% Covered payroll (A)
Net pension liability as percentage of covered payroll N/A 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%. (A) All Plan participants were retired as of July 1, 2018 Benefit changes. There were no changes in benefits.
123
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 Actuarially determined contribution $204,000 $280,000 $297,000 $391,000 $0 Contributions in relation to the actuarially determined contributions (272,689) (246,689) (290,000) (400,000) 0 Contribution deficiency (excess) ($42,689) $7,311 $7,000 ($9,000) $0 Covered payroll $653,039 $586,464 $182,068 $186,997 $0 (A) Contributions as a percentage of covered payroll 37.78% 46.50% 159.28% 213.91% 0% Notes to Schedule
Valuation date: 6/30/2014 6/30/2015 6/30/2016 6/30/2016 6/30/2017 For the Fiscal Year Ended June 30, 2020 2021 2022 2023 2024 Actuarially determined contribution $97,000 $100,000 $100,000 $208,000 $209,000 Contributions in relation to the actuarially determined contributions 0 0 0 (330,000) (338,000)
Contribution deficiency (excess) $97,000 $100,000 $100,000 ($122,000) ($129,000) Covered payroll $0 (A) $0 (A) $0 (A) $0 (A) $0 (A)
Contributions as a percentage of covered payroll 0% 0% 0% 0% 0% Notes to Schedule
Valuation date: 6/30/2018 6/30/2020 6/30/2020 6/30/2022 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 5-year fixed period for 2023/24 Asset valuation method Market value of assets
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 (A) All Plan participants were retired as of July 1, 2018
2.50%
3.00%
124
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 Total OPEB Liability (1)
Service Cost $1,509,000 $1,263,802 $1,183,810 $1,323,555 $1,767,370 Interest 1,059,000 1,235,540 1,299,001 1,256,947 968,637 Changes of benefit terms
Differences between expected and actual experience (256,511) 866,800 Changes of assumptions (3,276,000) (1,351,768) 1,523,401 5,876,460 288,190 Benefit payments (1,631,000) (1,733,000) (1,781,930) (1,816,214) (1,885,034) Net change in total OPEB liability (2,339,000) (841,937) 2,224,282 7,507,548 1,139,163 Total OPEB liability - beginning 36,454,000 34,115,000 33,273,063 35,497,345 43,004,893 Total OPEB liability - ending (a) $34,115,000 $33,273,063 $35,497,345 $43,004,893 $44,144,056 Covered-employee payroll $38,034,624 $31,729,215 $39,889,613 $36,097,420 $39,082,228 Total OPEB liability as a percentage of covered-employee payroll 89.69% 104.87% 88.99% 119.14% 112.95% Measurement Date 6/30/22 6/30/23
Total OPEB Liability (1)
Service Cost $1,820,051 $1,126,902
Interest 971,080 1,345,035
Changes of benefit terms
Differences between expected and actual experience 811,844 0 Changes of assumptions (7,876,327) (474,103)
Benefit payments (2,013,440) (1,977,631)
Net change in total OPEB liability (6,286,792) 20,203
Total OPEB liability - beginning 44,144,056 37,857,264
Total OPEB liability - ending (a) $37,857,264 $37,877,467 Covered-employee payroll $44,166,566 $53,616,150
Total OPEB liability as a percentage of covered-employee payroll 85.71% 70.65% 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. 125
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SUPPLEMENTARY INFORMATION
This Page Left Intentionally Blank
MAJOR GOVERNMENTAL FUNDS, OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
PUBLIC FACILITIES IMPLEMENTATION PLAN FUND - This fund was initially established to account for the costs incurred for the development of a Public Facilities Implementation Plan. This fund accounts for the developer impact fees collected and expended in the construction of the Drainage and Transportation elements of the Plan. The Sewer and Water developer impact fees collected and expended in connection with the Plan are accounted for in their respective Enterprise Funds.
STATE GASOLINE TAX FUND - 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.
GAS TAX SB1 FUND - 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. 129
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, 2024
Variance
Positive
Budget Actual (Negative)
REVENUES
Use of money and property $235,000 $1,309,167 $1,074,167 Charges for current services 10,910,000 11,445,439 535,439 Total Revenues 11,145,000 12,754,606 1,609,606
EXPENDITURES
Current:
Public works 318,615 333,423 (14,808)
Capital outlay 3,462,112 7,454,052 (3,991,940)
Debt service:
Interest and fiscal charges 86,616 (86,616)
Total Expenditures 3,780,727 7,874,091 (4,093,364)
NET CHANGE IN FUND BALANCE $7,364,273 4,880,515 ($2,483,758) BEGINNING FUND BALANCE 46,643,087
ENDING FUND BALANCE $51,523,602
130
CITY OF MANTECA
STATE GASOLINE TAX FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Positive
Budget Actual (Negative)
REVENUES:
Use of money and property $7,250 $85,081 $77,831
Revenue from other agencies 2,333,934 2,414,233 80,299
Other revenue 13,795 13,795
Total Revenues 2,341,184 2,513,109 171,925
EXPENDITURES:
Current:
Public works 29,800 22,186 7,614
Parks and recreation 4,000 4,382 (382)
Streets and highways 3,493,751 3,115,495 378,256
Capital outlay 10,674 82,674 (72,000)
Total Expenditures 3,538,225 3,224,737 313,488
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,197,041) (711,628) 485,413
OTHER FINANCING SOURCES (USES)
Transfers in 4,925 (4,925)
NET CHANGE IN FUND BALANCE ($1,192,116) (711,628) $480,488 BEGINNING FUND BALANCE 1,945,951
ENDING FUND BALANCE (DEFICIT) $1,234,323
131
CITY OF MANTECA
GAS TAX SB1 FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance
Positive
Budget Actual (Negative)
REVENUES
Use of money and property $166,406 $166,406
Revenue from other agencies $2,104,730 2,291,655 186,925 Total Revenues 2,104,730 2,458,061 353,331
EXPENDITURES
Capital outlay 3,117,647 1,091,069 2,026,578
Total Expenditures 3,117,647 1,091,069 2,026,578
NET CHANGE IN FUND BALANCE ($1,012,917) 1,366,992 $2,379,909 BEGINNING FUND BALANCE 5,724,348
ENDING FUND BALANCE $7,091,340
132
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.
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.
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.
133
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
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.
CAPITAL IMPROVEMENT FUNDS:
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.
134
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
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.
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.
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.
GOVERNMENT BUILDING FACILITIES FUND
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.
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. 135
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
Supplemental
Community Law Major
Development Enforcement Street Equipment
Block Grant Police Grants Services Improvements Purchase Fee ASSETS
Cash and investments $274,516 $537,190 $49,572 $1,687,946 Restricted cash and investments
Accounts receivables (net of allowance for
estimated uncollectible accounts) $119,344 214,393 94,414 Taxes receivable
Interest receivable
Leases receivable
Total Assets $119,344 $488,909 $537,190 $49,572 $1,782,360
LIABILITIES
Accounts payable $9,013 $5,517
Contracts payable
Refundable deposits
Due to other funds 89,034 $127,142
Unearned revenue 26,260
Total Liabilities 98,047 153,402 5,517
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 115,400 167,723 $94,414 Related to leases
Total Deferred Inflows of Resources 115,400 167,723 94,414
FUND BALANCE
Fund balance:
Restricted 167,784 531,673 $49,572 1,687,946
Committed
Assigned
Unassigned (94,103)
Total Fund Balances (94,103) 167,784 531,673 49,572 1,687,946 Total Liabilities and Fund Balances $119,344 $488,909 $537,190 $49,572 $1,782,360
SPECIAL REVENUE FUNDS
136
SPECIAL REVENUE FUNDS
Landscape
and Lighting Community Public Innovation
Maintenance Development Facilities Fire Safety and Engineering COVID District Mitigation Districts Grants Sales Tax Technology Services Relief $2,137,886 $10,922,029 $6,413,207 $136,785 $4,113,544 $296,580 $4,058,971 $6,345,261 226,056 318 64,515
1,739,842
830
575,079
$2,137,886 $10,922,029 $6,413,207 $362,841 $5,853,386 $872,807 $4,123,486 $6,345,261 $82,515 $408,483 $4,367 $22,581 $15,315 $103,384
750,581
6,241,877
82,515 1,159,064 4,367 22,581 15,315 6,345,261
$226,056
547,201
226,056 547,201
2,055,371 $10,922,029 5,254,143 136,785 5,849,019 4,108,171 303,025
2,055,371 10,922,029 5,254,143 136,785 5,849,019 303,025 4,108,171 $2,137,886 $10,922,029 $6,413,207 $362,841 $5,853,386 $872,807 $4,123,486 $6,345,261 (Continued)
137
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
CAPITAL IMPROVEMENT FUNDS
Regional Redevelopment
Transportation Flood Bonds
Impact Fees Measure K Parks Protection Projects
ASSETS
Cash and investments $23,884,385 $6,522,949 $20,015,013 $1,999,258 Restricted cash and investments 605,294 $3,429,818
Accounts receivables (net of allowance for
estimated uncollectible accounts) 96,649
Taxes receivable 486,775
Interest receivable
Leases receivable
Total Assets $23,884,385 $7,009,724 $20,620,307 $1,999,258 $3,526,467
LIABILITIES
Accounts payable $488,518 $734,662 $18,977 $1,968,185
Contracts payable 2,214
Refundable deposits 34,036 605,294
Due to other funds
Unearned revenue
Total Liabilities 522,554 734,662 626,485 1,968,185
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Related to leases
Total Deferred Inflows of Resources
FUND BALANCE
Fund balance:
Restricted 23,361,831 6,275,062 19,993,822 31,073 $3,526,467 Committed
Assigned
Unassigned
Total Fund Balances 23,361,831 6,275,062 19,993,822 31,073 3,526,467 Total Liabilities and Fund Balances $23,884,385 $7,009,724 $20,620,307 $1,999,258 $3,526,467 138
CAPITAL IMPROVEMENT FUNDS
Total
Fire Neighborhood Government Special Nonmajor
Facilities Parks Building Apportionment Governmental
Fee In Lieu Fee Facilities Streets Funds
$5,558,908 $4,125,736 $40,004,310 $139,084,046
4,035,112
99,968 596,899 $7,559,626 9,072,182
2,226,617
830
575,079
$5,658,876 $4,125,736 $40,601,209 $7,559,626 $154,993,866 $4,384 $376,173 $4,242,074
26,192 28,406
562 1,390,473
4,195,813 4,411,989
6,268,137
4,384 4,598,740 16,341,079
99,968 $596,899 8,482 1,308,942
547,201
99,968 596,899 8,482 1,856,143
5,554,524 $4,125,736 40,004,310 133,635,318
303,025
2,952,404 2,952,404
(94,103)
5,554,524 4,125,736 40,004,310 2,952,404 136,796,644
$5,658,876 $4,125,736 $40,601,209 $7,559,626 $154,993,866 139
CITY OF MANTECA
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
(Previously
Supplemental Nonmajor)
Community Law Major
Development Enforcement Street Equipment
Block Grant Police Grants Services Recreation Improvements Purchase Fee
REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $48,436
Revenue from other agencies $400,641 $434,041 $253,657
Charges for current services 368,361
Other revenue
Total Revenues 400,641 434,041 253,657 416,797
EXPENDITURES
Current:
General government 375,299
Community development
Public safety 221,072 37,728
Public works
Parks and recreation
Streets and highways
Nondepartmental 70,059
Capital outlay 130,506 153,614
Total Expenditures 375,299 351,578 261,401
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 25,342 82,463 (7,744) 416,797
OTHER FINANCING SOURCES (USES)
Transfers in 20,000
Transfers out
Total Other Financing Sources (Uses) 20,000
NET CHANGE IN FUND BALANCES 45,342 82,463 (7,744) 416,797
BEGINNING FUND BALANCES (DEFICITS),
AS PREVIOUSLY REPORTED (139,445) 85,321 539,417 $338,826 $49,572 1,271,149
ADJUSTMENTS
Changes from major fund to nonmajor fund
Changes from nonmajor fund to major fund (338,826)
BEGINNING FUND BALANCES (DEFICITS),
AS ADJUSTED (139,445) 85,321 539,417 49,572 1,271,149
ENDING FUND BALANCES (DEFICITS) ($94,103) $167,784 $531,673 $49,572 $1,687,946 140
SPECIAL REVENUE FUNDS
(Previously
Landscape Nonmajor)
and Lighting Community Public Innovation
Maintenance Development Development Facilities Fire Safety and Engineering COVID District Services Mitigation Districts Grants Sales Tax Technology Services Relief $10,109,630
$108,724 $335,546 $100,159 145,066 $11,581 $41,096
$93,057 67,711 $3,129,274
1,466,839 770,559 2,899,004 4,384,251
3,170 3,120 115,293 76,246
1,578,733 1,106,105 3,002,283 93,057 10,254,696 126,874 4,569,304 3,129,274 116,754 70,000
35,000
12,229 10,080,708 430,000
1,137,198 2,441,273 730,000
858,655 79,487 20,000
65,000
141,684 41,681 137,850 102,484 1,672,378
1,000,339 41,681 1,354,535 12,229 10,183,192 116,754 2,441,273 3,022,378 578,394 1,064,424 1,647,748 80,828 71,504 10,120 2,128,031 106,896 360,070 1,738,700
(45,000)
360,070 1,693,700
578,394 1,064,424 1,647,748 440,898 71,504 10,120 3,821,731 106,896 1,476,977 $13,671,528 9,857,605 3,606,395 (304,113) 5,777,515 292,905 286,440 (106,896) (13,671,528)
1,476,977 9,857,605 3,606,395 (304,113) 5,777,515 292,905 286,440 (106,896) $2,055,371 $10,922,029 $5,254,143 $136,785 $5,849,019 $303,025 $4,108,171 (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, 2024
CAPITAL IMPROVEMENT FUNDS
(Previously
Nonmajor)
State Regional Redevelopment
Gasoline Transportation Flood Bonds
Tax Impact Fees Measure K Parks Protection Projects
REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $665,449 $327,351 $545,085 $24,479 $2,085,244 Revenue from other agencies 2,516,926
Charges for current services 3,430,490 4,803,724
Other revenue 1,172,434 96,649
Total Revenues 5,268,373 2,844,277 5,348,809 24,479 2,181,893
EXPENDITURES
Current:
General government
Community development
Public safety
Public works 365,845
Parks and recreation 203,896
Streets and highways 8,680 23,070
Nondepartmental
Capital outlay 45,465 7,179,620 44,102 6,319,663
Total Expenditures 54,145 7,568,535 247,998 6,319,663
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 5,214,228 (4,724,258) 5,100,811 24,479 (4,137,770)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (202,927)
Total Other Financing Sources (Uses) (202,927)
NET CHANGE IN FUND BALANCES 5,214,228 (4,927,185) 5,100,811 24,479 (4,137,770)
BEGINNING FUND BALANCES (DEFICITS),
AS PREVIOUSLY REPORTED $1,945,951 18,147,603 11,202,247 14,893,011 6,594 7,664,237
ADJUSTMENTS
Changes from major fund to nonmajor fund
Changes from nonmajor fund to major fund (1,945,951)
BEGINNING FUND BALANCES (DEFICITS),
AS ADJUSTED 18,147,603 11,202,247 14,893,011 6,594 7,664,237 ENDING FUND BALANCES (DEFICITS) $23,361,831 $6,275,062 $19,993,822 $31,073 $3,526,467 142
CAPITAL IMPROVEMENT FUNDS
(Previously (Previously
Nonmajor) Major) Total
Fire Neighborhood Government Special Nonmajor
Facilities Parks Gas Tax Building Apportionment Governmental Fee In Lieu Fee SB1 Facilities Streets Funds
$10,109,630
$1,899,232 $6,069,135 7,968,367
124,762 $127,285 1,149,692 5,839,955
$12,582,538 19,477,845
18,123,228
13,623 1,480,535
2,023,994 127,285 7,218,827 12,596,161 62,999,560
562,053
35,000
10,781,737
4,674,316
1,162,038
1,488,037 1,584,787
70,059
95,396 1,485,324 17,549,767
95,396 2,973,361 36,419,757
1,928,598 127,285 7,218,827 9,622,800 26,579,803
2,118,770
(70,659) (318,586)
(70,659) 1,800,184
1,928,598 127,285 7,218,827 9,552,141 28,379,987
3,625,926 3,998,451 $5,724,348 32,785,483 136,697,047
(6,599,737) (6,599,737)
(5,724,348) (21,680,653)
3,625,926 3,998,451 32,785,483 (6,599,737) 108,416,657
$5,554,524 $4,125,736 $40,004,310 $2,952,404 $136,796,644 143
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, 2024
COMMUNITY DEVELOPMENT
BLOCK GRANT POLICE GRANTS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property
Revenue from other agencies $297,636 $400,641 $103,005 $222,116 $434,041 $211,925 Charges for current services
Other revenue
Total Revenues 297,636 400,641 103,005 222,116 434,041 211,925
EXPENDITURES
Current:
General government 347,075 375,299 (28,224)
Community development
Public safety 197,975 221,072 (23,097)
Public works
Parks and recreation
Streets and highways
Nondepartmental
Capital outlay 132,850 130,506 2,344
Total Expenditures 347,075 375,299 (28,224) 330,825 351,578 (20,753)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (49,439) 25,342 74,781 (108,709) 82,463 191,172
OTHER FINANCING SOURCES (USES)
Transfers in 20,000 20,000
Transfers out
Total Other Financing Sources (Uses) 20,000 20,000
NET CHANGE IN FUND BALANCES ($29,439) 45,342 $74,781 ($108,709) 82,463 $191,172 BEGINNING FUND BALANCES (DEFICITS) (139,445) 85,321
ENDING FUND BALANCES (DEFICITS) ($94,103) $167,784
144
SUPPLEMENTAL LAW MAJOR EQUIPMENT
ENFORCEMENT SERVICES STREET IMPROVEMENTS PURCHASE FEE
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $48,436 $48,436
$200,000 $253,657 $53,657
368,361 368,361
200,000 253,657 53,657 416,797 416,797
65,243 37,728 27,515
50,342 70,059 (19,717)
177,051 153,614 23,437
292,636 261,401 31,235
(92,636) (7,744) 84,892 416,797 416,797
($92,636) (7,744) $84,892 416,797 $416,797
539,417 $49,572 1,271,149
$531,673 $49,572 $1,687,946
(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, 2024
LANDSCAPE AND
LIGHTING MAINTENANCE DISTRICT DEVELOPMENT MITIGATION
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $108,724 $108,724 $8,500 $335,546 $327,046 Revenue from other agencies
Charges for current services $1,473,413 1,466,839 (6,574) 1,245,000 770,559 (474,441) Other revenue 3,170 3,170
Total Revenues 1,473,413 1,578,733 105,320 1,253,500 1,106,105 (147,395)
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation 1,522,981 858,655 664,326
Streets and highways
Nondepartmental
Capital outlay 295,211 141,684 153,527 60,528 41,681 18,847 Total Expenditures 1,818,192 1,000,339 817,853 60,528 41,681 18,847
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (344,779) 578,394 923,173 1,192,972 1,064,424 (128,548)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES ($344,779) 578,394 $923,173 $1,192,972 1,064,424 ($128,548) BEGINNING FUND BALANCES (DEFICITS) 1,476,977 9,857,605
ENDING FUND BALANCES (DEFICITS) $2,055,371 $10,922,029
146
COMMUNITY
FACILITIES DISTRICTS FIRE GRANTS PUBLIC SAFETY SALES TAX Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $10,508,800 $10,109,630 ($399,170)
$100,159 $100,159 47,000 145,066 98,066
$15,000 $93,057 $78,057
$2,339,830 2,899,004 559,174
3,120 3,120
2,339,830 3,002,283 662,453 15,000 93,057 78,057 10,555,800 10,254,696 (301,104) 15,000 12,229 2,771 9,986,462 10,080,708 (94,246)
2,329,767 1,137,198 1,192,569
83,727 79,487 4,240
891,371 137,850 753,521 104,942 102,484 2,458
3,304,865 1,354,535 1,950,330 15,000 12,229 2,771 10,091,404 10,183,192 (91,788) (965,035) 1,647,748 2,612,783 80,828 80,828 464,396 71,504 (392,892) 360,070 360,070 50,000 (50,000)
360,070 360,070 50,000 (50,000)
($965,035) 1,647,748 $2,612,783 $360,070 440,898 $80,828 $514,396 71,504 ($442,892) 3,606,395 (304,113) 5,777,515
$5,254,143 $136,785 $5,849,019
(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, 2024
INNOVATION AND TECHNOLOGY ENGINEERING SERVICES
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $11,581 $11,581 $41,096 $41,096 Revenue from other agencies $101,200 (101,200) $25,000 67,711 42,711 Charges for current services 1,910,000 4,384,251 2,474,251 Other revenue 100,000 115,293 15,293 80,000 76,246 (3,754) Total Revenues 201,200 126,874 (74,326) 2,015,000 4,569,304 2,554,304
EXPENDITURES
Current:
General government 201,954 116,754 85,200
Community development
Public safety
Public works 3,261,889 2,441,273 820,616
Parks and recreation
Streets and highways
Nondepartmental
Capital outlay
Total Expenditures 201,954 116,754 85,200 3,261,889 2,441,273 820,616
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (754) 10,120 10,874 (1,246,889) 2,128,031 3,374,920
OTHER FINANCING SOURCES (USES)
Transfers in 1,738,700 1,738,700
Transfers out (345,000) (45,000) 300,000
Total Other Financing Sources (Uses) 1,393,700 1,693,700 300,000 NET CHANGE IN FUND BALANCES ($754) 10,120 $10,874 $146,811 3,821,731 $3,674,920 BEGINNING FUND BALANCES (DEFICITS) 292,905 286,440
ENDING FUND BALANCES (DEFICITS) $303,025 $4,108,171
148
REGIONAL
COVID RELIEF TRANSPORTATION IMPACT FEES MEASURE K
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $34,000 $665,449 $631,449 $327,351 $327,351
$3,682,765 $3,129,274 ($553,491) $2,439,927 2,516,926 76,999 2,855,000 3,430,490 575,490
1,172,434 1,172,434
3,682,765 3,129,274 (553,491) 2,889,000 5,268,373 2,379,373 2,439,927 2,844,277 404,350 70,000 (70,000)
35,000 (35,000)
5,337,664 430,000 4,907,664
730,000 (730,000) 521,843 365,845 155,998
20,000 (20,000)
65,000 (65,000) 8,680 (8,680) 30,791 23,070 7,721
965,649 1,672,378 (706,729) 54,307 45,465 8,842 7,165,818 7,179,620 (13,802) 6,303,313 3,022,378 3,280,935 54,307 54,145 162 7,718,452 7,568,535 149,917 (2,620,548) 106,896 2,727,444 2,834,693 5,214,228 2,379,535 (5,278,525) (4,724,258) 554,267 (202,927) (202,927)
(202,927) (202,927)
($2,620,548) 106,896 $2,727,444 $2,834,693 5,214,228 $2,379,535 ($5,481,452) (4,927,185) $554,267 (106,896) 18,147,603 11,202,247
$23,361,831 $6,275,062
(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, 2024
PARKS FLOOD PROTECTION
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Licenses and permits
Use of money and property $545,085 $545,085 $24,479 $24,479 Revenue from other agencies
Charges for current services $2,000,000 4,803,724 2,803,724 Other revenue
Total Revenues 2,000,000 5,348,809 3,348,809 24,479 24,479
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation 203,896 203,896
Streets and highways
Nondepartmental
Capital outlay 44,103 44,102 1
Total Expenditures 247,999 247,998 1
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,752,001 5,100,811 3,348,810 24,479 24,479
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES $1,752,001 5,100,811 $3,348,810 24,479 $24,479 BEGINNING FUND BALANCES (DEFICITS) 14,893,011 6,594
ENDING FUND BALANCES (DEFICITS) $19,993,822 $31,073
150
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) $1,701,000 $1,899,232 $198,232
$2,085,244 $2,085,244 124,762 124,762 $127,285 $127,285 $96,649 96,649
96,649 2,181,893 2,085,244 1,701,000 2,023,994 322,994 127,285 127,285 6,319,663 6,319,663 93,817 95,396 (1,579)
6,319,663 6,319,663 93,817 95,396 (1,579)
(6,223,014) (4,137,770) 2,085,244 1,607,183 1,928,598 321,415 127,285 127,285 ($6,223,014) (4,137,770) $2,085,244 $1,607,183 1,928,598 $321,415 127,285 $127,285 7,664,237 3,625,926 3,998,451
$3,526,467 $5,554,524 $4,125,736
(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, 2024
GOVERNMENT BUILDING FACILITIES SPECIAL APPORTIONMENT STREETS Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Licenses and permits $5,000,000 $6,069,135 $1,069,135
Use of money and property 284,000 1,149,692 865,692
Revenue from other agencies $2,176,051 $12,582,538 $10,406,487 Charges for current services
Other revenue 13,623 13,623
Total Revenues 5,284,000 7,218,827 1,934,827 2,176,051 12,596,161 10,420,110
EXPENDITURES
Current:
General government
Community development
Public safety
Public works
Parks and recreation
Streets and highways 1,363,296 1,488,037 (124,741)
Nondepartmental
Capital outlay 66,310 66,310 1,532,803 1,485,324 47,479 Total Expenditures 66,310 66,310 2,896,099 2,973,361 (77,262)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 5,217,690 7,218,827 2,001,137 (720,048) 9,622,800 10,342,848
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (70,659) (70,659)
Total Other Financing Sources (Uses) (70,659) (70,659)
NET CHANGE IN FUND BALANCES $5,217,690 7,218,827 $2,001,137 ($790,707) 9,552,141 $10,342,848 BEGINNING FUND BALANCES (DEFICITS) 32,785,483 (6,599,737) ENDING FUND BALANCES (DEFICITS) $40,004,310 $2,952,404
152
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.
INSURANCE
Established to account for the self-insured portion of the City’s workers’ compensation and liability insurance programs.
153
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Vehicle Equipment Insurance Total
ASSETS
Current Assets:
Cash and investments $1,766,837 $2,535,624 $4,971,826 $9,274,287 Accounts receivable 18,142 18,142
Prepaids and deposits 26,544 26,544
Total Current Assets 1,784,979 2,562,168 4,971,826 9,318,973 Non-Current Assets:
Capital assets not being depreciated 952,629 218,111 1,170,740 Capital assets (net of
accumulated depreciation) 212,220 938,007 1,150,227
Total Non-Current Assets 1,164,849 1,156,118 2,320,967
Total Assets 2,949,828 3,718,286 4,971,826 11,639,940
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 1,099,110 226,732 1,325,842 Deferred outflows related to OPEB 85,990 45,861 131,851 Total Deferred Outflows of Resources 1,185,100 272,593 1,457,693
LIABILITIES
Current Liabilities:
Accounts payable 133,400 219,753 292,641 645,794
Refundable deposits 808 808
Interest payable 19,221 19,221
Estimated claims liability 1,302,921 1,302,921
Lease liability 1,579 1,579
Subscription liability 234,925 234,925
Total Current Liabilities 133,400 475,478 1,596,370 2,205,248 Long-term Liabilities:
Estimated claims liability 46,666 46,666
Net pension liability 3,637,861 750,443 4,388,304
Total OPEB Liability 496,244 264,663 760,907
Lease liability 1,582 1,582
Subscription liability 504,326 504,326
Total Long-Term Liabilities 4,640,013 1,061,772 5,701,785 Total Liabilities 133,400 5,115,491 2,658,142 7,907,033
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 87,498 46,666 134,164
Total Deferred Inflows of Resources 87,498 46,666 134,164
NET POSITION
Investment in capital assets 1,164,849 413,706 1,578,555 Unrestricted 1,651,579 (713,309) 2,539,611 3,477,881
Total Net Position $2,816,428 ($299,603) $2,539,611 $5,056,436 154
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Payroll
Tax
Vehicle Equipment Insurance Benefit Total
OPERATING REVENUES
Charges for services $1,377,277 $4,206,978 $5,584,255
Insurance premium contribution from other funds $6,781,164 6,781,164 Miscellaneous 131,236 131,236
Total Operating Revenues 1,377,277 4,206,978 6,912,400 12,496,655
OPERATING EXPENSES
Personnel services (100,115) 2,622,625 534,908 3,057,418 Contractual services 28,571 5,245 33,816
Supplies 106,850 441,088 6,343 554,281
Utilities 1,320 466,748 7,568 475,636
Repairs and maintenance 6,523 882,340 16,150 905,013
Interdepartmental 56,902 331,844 388,746
Insurance 76,352 5,751,150 5,827,502
Claims 280,486 280,486
Depreciation 59,503 339,359 398,862
Miscellaneous 33,363 54,884 88,247
Total Operating Expenses 130,983 5,222,290 6,656,734 12,010,007 Total Operating Income (Loss) 1,246,294 (1,015,312) 255,666 486,648
NONOPERATING REVENUES (EXPENSES)
Interest income 40,613 37,143 77,756
Interest expense (32,779) (32,779)
Gain on sale of capital assets 92,576 92,576
Total Nonoperating Revenues (Expenses) 133,189 4,364 137,553 Change in Net Position Before Transfers 1,379,483 (1,010,948) 255,666 624,201 Transfers In 45,000 45,000
Change in Net Position 1,424,483 (1,010,948) 255,666 669,201 BEGINNING NET POSITION, as previously reported 1,391,945 314,411 2,191,044 ($554,604) 3,342,796
ADJUSTMENTS
Change in Accounting Principle - OPEB Allocation 396,934 92,901 489,835 Change Within the Financial Reporting Entity 554,604 554,604 BEGINNING NET POSITION, AS ADJUSTED 1,391,945 711,345 2,283,945 4,387,235 ENDING NET POSITION $2,816,428 ($299,603) $2,539,611 $5,056,436 155
CITY OF MANTECA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Vehicle Equipment Insurance Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $1,359,135 $4,206,978 $6,912,400 $12,478,513 Payments to suppliers (103,238) (2,390,861) (5,686,038) (8,180,137) Payments to or on behalf of employees (27,402) (2,015,155) (448,258) (2,490,815) Claims paid (546,541) (546,541)
Cash Flows from (used by) Operating Activities 1,228,495 (199,038) 231,563 1,261,020
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Transfers in 45,000 45,000
Cash Flows from (used by) Noncapital and Related
Financing Activities 45,000 45,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (1,001,726) (188,535) (1,190,261) Proceeds from sale of capital assets 92,576 92,576
Lease liability - principal payment (1,557) (1,557)
Subscription liability - principal payment (229,150) (229,150) Lease and subscription liability - interest (24,428) (24,428) Cash Flows from (used by) Capital and Related
Financing Activities (909,150) (443,670) (1,352,820)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earnings 40,613 37,143 77,756
Cash Flows from Investing Activities 40,613 37,143 77,756 Net Cash Flows 404,958 (605,565) 231,563 30,956
Cash and investments at beginning of period 1,361,879 3,141,189 4,740,263 9,243,331 Cash and investments at end of period $1,766,837 $2,535,624 $4,971,826 $9,274,287 Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss) $1,246,294 ($1,015,312) $255,666 $486,648 Adjustments to reconcile operating income to net cash flows from operating activities:
Depreciation 59,503 339,359 398,862
Change in assets and liabilities:
Receivables, net (18,142) (18,142)
Prepaids and deposits (26,544) (26,544)
Accounts and other payables 68,357 (104,011) 155,302 119,648 Claims liability (266,055) (266,055)
Net pension liability, deferred outflows and inflows (127,517) 620,471 (9,818) 483,136 Total OPEB liability, deferred outflows and inflows (13,001) 96,468 83,467 Cash Flows from (used by) Operating Activities $1,228,495 ($199,038) $231,563 $1,261,020 156
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 157
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.
158
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CITY OF MANTECA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
June 30,
2015 2016 2017 2018(A) 2019
Governmental activities
Net investment in capital assets $278,800,432 $282,954,575 $311,611,351 $327,232,512 $346,055,728 Restricted 108,825,262 139,014,904 139,177,788 153,222,783 159,370,865 Unrestricted (41,846,484) (42,549,501) (35,156,678) (54,265,195) (54,138,733) Total governmental activities net position $345,779,210 $379,419,978 $415,632,461 $426,190,100 $451,287,860 Business-type activities
Net investment in capital assets $136,876,673 $144,968,629 $136,859,563 $157,529,677 $168,685,323 Unrestricted 40,706,859 38,202,656 51,856,903 43,293,291 52,128,274 Total business-type activities net position $177,583,532 $183,171,285 $188,716,466 $200,822,968 $220,813,597 Primary government
Net investment in capital assets $415,677,105 $427,923,204 $448,470,914 $484,762,189 $514,741,051 Restricted 108,825,262 139,014,904 139,177,788 153,222,783 159,370,865 Unrestricted (1,139,625) (4,346,845) 16,700,225 (10,971,904) (2,010,459) Total primary government net position $523,362,742 $562,591,263 $604,348,927 $627,013,068 $672,101,457 (A) 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
$1,000
Millions
Net investment in capital assets
Restricted
160
2020 2021 2022 2023 2024
$395,180,359 $414,565,642 $422,119,848 $439,385,476 $465,658,158 149,336,987 173,389,648 197,202,912 217,804,065 249,083,701 (62,776,206) (63,375,920) (67,239,259) (53,591,717) (61,023,020) $481,741,140 $524,579,370 $552,083,501 $603,597,824 $653,718,839 $193,144,500 $212,888,678 $220,695,835 $222,479,874 $231,116,914 44,732,619 53,979,732 61,562,129 73,808,452 84,265,669
$237,877,119 $266,868,410 $282,257,964 $296,288,326 $315,382,583 $588,324,859 $627,454,320 $642,815,683 $661,865,350 $696,775,072 149,336,987 173,389,648 197,202,912 217,804,065 249,083,701 (18,043,587) (9,396,188) (5,677,130) 20,216,735 23,242,649 $719,618,259 $791,447,780 $834,341,465 $899,886,150 $969,101,422 161
CITY OF MANTECA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2015 2016 2017 2018(1) 2019
Expenses:
Governmental Activities:
General Government $3,312,873 $3,629,365 $3,483,457 $5,906,891 $6,053,229 Community Development 4,987,786 6,616,224 6,196,786 9,669,910 7,701,286 Public Safety 25,166,890 25,193,524 22,357,675 34,883,973 36,204,202 Library 114,291 118,809 124,185 120,222 134,006
Public Works 5,094,875 4,843,276 5,274,495 7,091,236 8,645,927 Parks and Recreation 7,403,446 8,331,503 9,295,263 10,651,329 10,125,867 Streets and Highways 7,969,409 10,856,381 9,817,010 8,850,328 11,513,804 Interest and Fiscal Charges 87,096 101,562 89,384 84,784 80,021 Total Governmental Activities Expenses 54,136,666 59,690,644 56,638,255 77,258,673 80,458,342 Business-Type Activities:
Water 14,009,670 14,996,267 16,753,545 17,520,196 17,818,593 Sewer 13,853,066 14,274,230 22,082,085 16,478,268 17,479,631 Solid Waste 9,900,313 10,566,029 12,126,537 11,491,357 12,622,724 Golf 1,154,179 1,178,770 1,347,568 1,121,928 1,284,914
Transit
Total Business-Type Activities Expenses 38,917,228 41,015,296 52,309,735 46,611,749 49,205,862 Total Primary Government Expenses $93,053,894 $100,705,940 $108,947,990 $123,870,422 $129,664,204 Program Revenues:
Governmental Activities:
Charges for Services:
General Government $4,513,841 $4,337,680 $5,136,836 $5,994,217 $6,266,735 Community Development 2,575,570 2,877,168 4,624,314 7,306,692 7,640,377 Public Safety 1,621,244 1,360,473 1,542,872 1,874,561 3,232,381 Public Works 41,889 183,422 273,903 288,452 398,437
Parks and Recreation 2,263,443 2,772,184 3,458,096 3,337,139 4,247,649 Streets and Highways 2,925,863
Operating Grants and Contributions 6,991,694 6,085,529 6,698,385 8,695,800 9,575,549 Capital Grants and Contributions 20,220,600 41,118,815 33,113,697 33,768,730 26,345,923 Total Government Activities Program Revenues 38,228,281 58,735,271 54,848,103 61,265,591 60,632,914 Business-Type Activities:
Charges for Services:
Water 14,240,103 13,901,722 15,396,799 17,841,323 16,620,397 Sewer 19,270,009 19,969,107 22,953,356 26,572,846 26,305,512 Solid Waste 8,827,211 9,131,837 10,483,066 12,593,379 13,429,983 Golf 1,009,100 978,427 908,639 1,193,170 1,112,976
Transit
Operating Grants and Contributions
Capital Grants and Contributions 2,401,413 935,948 6,660,347 4,487,162 3,577,598 Total Business-Type Activities Program Revenue 45,747,836 44,917,041 56,402,207 62,687,880 61,046,466 Total Primary Government Program Revenues $83,976,117 $103,652,312 $111,250,310 $123,953,471 $121,679,380 Net (Expense)/Revenue:
Governmental Activities ($15,908,385) ($955,373) ($1,790,152) ($15,993,082) ($19,825,428) Business-Type Activities 6,830,608 3,901,745 4,092,472 16,076,131 11,840,604 Total Primary Government Net Expense ($9,077,777) $2,946,372 $2,302,320 $83,049 ($7,984,824) General Revenues and Other
Changes in Net Position:
Governmental Activities:
Taxes:
Property Taxes $13,054,963 $12,633,502 $14,476,480 $15,511,281 $17,158,387 Sales Taxes 13,271,312 14,552,582 17,550,799 18,971,755 20,298,214 Other Taxes 5,109,652 5,006,171 3,012,505 3,325,769 3,761,139 Interest Income 744,569 1,635,220 850,024 1,175,293 5,026,389 Other Revenue 1,484,667 937,712 1,327,689 1,867,047 848,738 Developer Contributions 69,231 72,154 326,216 209,612 350,696 Gain From Sale of Capital Assets 1,675,000
Transfers, net (1,606,375) (241,200) (300,488) (468,073) (4,195,375) Special Item 759,410
Total Government Activities 32,128,019 34,596,141 38,002,635 40,592,684 44,923,188 Business-Type Activities:
Interest Income 606,799 1,167,858 472,012 810,465 3,528,311 Other Revenue 462,941 276,950 680,209 389,176 426,339
Gain From Sale of Capital Assets
Transfers, net 1,606,375 241,200 300,488 468,073 4,195,375 Total Business-Type Activities 2,676,115 1,686,008 1,452,709 1,667,714 8,150,025 Total Primary Government $34,804,134 $36,282,149 $39,455,344 $42,260,398 $53,073,213 Change in Net Position:
Governmental Activities $16,219,634 $33,640,768 $36,212,483 $24,599,602 $25,097,760 Business-Type Activities 9,506,723 5,587,753 5,545,181 17,743,845 19,990,629 Total Primary Government $25,726,357 $39,228,521 $41,757,664 $42,343,447 $45,088,389 (1) The City implemented the provisions of GASB Statement 75 in fiscal year 2018. Amounts prior to 2018 have not been restated. (2) The Transit Enterprise Fund activities were previously reported in governmental activities. 162
2020 2021 2022 2023 2024
$7,054,126 $9,079,274 $5,493,756 $10,150,611 $14,222,196 8,242,158 10,364,833 15,021,715 14,921,624 15,960,910
42,395,447 40,640,436 54,117,359 36,874,290 $52,495,969 145,310 87,185 124,342 146,067 159,214
7,137,403 9,367,355 12,812,977 17,004,659 $19,615,341
11,710,512 9,047,085 6,821,241 6,080,603 5,513,406
10,268,116 11,463,230 12,042,148 12,874,297 $15,133,269 129,403 163,409 85,578 89,385 93,675
87,082,475 90,212,807 106,519,116 98,141,536 123,193,980 18,967,868 26,674,047 19,513,996 20,449,549 24,628,431
18,596,722 19,697,865 21,604,463 22,408,854 27,934,721
12,752,503 12,884,734 15,402,035 16,728,245 17,964,654
1,327,641 1,643,383 1,756,328 1,636,173 1,654,615
(2) 3,377,255 4,197,567
51,644,734 60,900,029 58,276,822 64,600,076 76,379,988
$138,727,209 $151,112,836 $164,795,938 $162,741,612 $199,573,968 $6,038,904 $6,172,866 $6,179,781 $6,749,391 $7,841,363
6,545,381 7,062,924 8,921,025 6,254,666 9,422,712
1,580,738 2,969,457 3,193,265 2,513,921 1,774,957
239,053 1,056,285 996,377 2,542,957 5,006,321
4,173,698 3,846,159 4,741,365 4,971,913 5,975,713
9,952,561 9,597,652 13,069,036 8,725,900 15,253,363
38,154,802 50,590,297 39,061,963 52,366,303 45,022,662
66,685,137 81,295,640 76,162,812 84,125,051 90,297,091
17,576,060 21,103,821 21,816,772 18,786,751 24,411,625
22,510,081 24,757,696 26,024,468 25,917,480 27,693,625
13,875,762 14,624,464 15,730,829 16,288,404 21,136,784
1,044,323 1,689,785 1,642,464 1,525,393 1,592,653
105,822 121,233
23,126,463 6,000,000 3,535,010 2,712,163
10,233,700 4,401,716 2,380,360 4,229,461 9,851,452
65,239,926 89,703,945 73,594,893 70,388,321 87,519,535
$131,925,063 $170,999,585 $149,757,705 $154,513,372 $177,816,626 ($20,397,338) ($8,917,167) ($30,356,304) ($14,016,485) ($32,896,889) 13,595,192 28,803,916 15,318,071 5,788,245 11,139,547
($6,802,146) $19,886,749 ($15,038,233) ($8,228,240) ($21,757,342) $19,385,771 $21,126,114 $21,443,545 $25,660,666 $27,637,304 22,292,924 23,509,852 28,438,483 29,324,167 29,241,378
3,434,933 4,144,750 9,577,052 10,218,719 9,964,285
4,501,680 1,012,967 (3,237,386) 4,531,826 9,760,393
215,694 598,244 907,892 1,408,087 2,059,406
1,144,141 1,268,286 1,173,042 368,332 770,559
457,360 29,762 317,807
(581,885) 95,184 (471,955) (5,984,989) 2,484,789
50,850,618 51,755,397 57,860,435 65,526,808 82,235,921
2,679,191 125,791 (1,754,659) 1,890,954 4,813,201
207,254 154,268 1,354,187 366,174 234,830
2,500 1,250,000
581,885 (95,184) 471,955 5,984,989 (2,484,789)
3,468,330 187,375 71,483 8,242,117 3,813,242
$54,318,948 $51,942,772 $57,931,918 $73,768,925 $86,049,163 $30,453,280 $42,838,230 $27,504,131 $51,510,323 $49,339,032 17,063,522 28,991,291 15,389,554 14,030,362 14,952,789
$47,516,802 $71,829,521 $42,893,685 $65,540,685 $64,291,821 163
CITY OF MANTECA
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
June 30,
2015 2016 2017 2018 2019
General Fund:
Nonspendable $227,542 $1,140,121 $1,236,685 $1,174,248 $1,167,635 Restricted 496,896 493,423 497,968
Assigned 7,921,152 10,860,353 12,167,528 12,242,789 22,234,205 Unassigned 15,792,889 14,362,743 15,313,223 17,864,670 5,365,691 Total General Fund $23,941,583 $26,363,217 $29,214,332 $31,775,130 $29,265,499 All Other Governmental Funds:
Nonspendable $367,368
Restricted $80,121,549 109,084,616 $108,951,883 $121,695,103 $130,317,107 Committed 542,435 566,659 513,754 315,126 128,901
Assigned 5,852,064 6,873,122 7,593,864 8,993,799 6,595,121 Unassigned
Total All Other Governmental Funds $86,516,048 $116,891,765 $117,059,501 $131,004,028 $137,041,129 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
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$100
$150
$200
$250
$300
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Nonspendable Restricted Committed Assigned Unassigned
164
2020 2021 2022 2023 2024
$1,081,780 $1,081,780 $1,081,780 $1,161,780 $1,085,904
468,942 463,902 455,838 448,821 427,774
22,845,194 22,693,202 26,188,105 28,411,565 30,542,921
9,498,731 12,784,135 9,331,508 10,485,964 15,591,035
$33,894,647 $37,023,019 $37,057,231 $40,508,130 $47,647,634 (a) $12,640
$114,589,894 $135,284,222 160,541,696 $184,317,805 $213,541,542 151,617 292,905 303,025
2,464,870 2,951,856 726,934 2,952,404
(217,246) (627,731) (614,292) (7,234,011) (177,923)
$116,989,135 $137,608,347 $160,666,978 $177,376,699 $216,619,048 (a) 165
CITY OF MANTECA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019
Revenues
Taxes $32,094,372 $32,947,680 $35,923,482 $38,836,074 $41,952,454 Licenses and permits 4,662,438 5,500,733 7,297,736 9,361,925 7,741,377 Fines and forfeitures 283,690 251,348 242,370 274,079 495,618 Use of money and property 657,340 1,524,560 887,642 1,178,617 4,702,952 Revenue from other agencies 10,759,079 36,458,520 8,181,175 9,979,594 10,055,955 Charges for services 11,740,989 12,393,596 16,563,471 24,833,693 25,269,605 Other revenue 1,136,856 840,611 1,310,923 978,783 792,282 Total Revenues 61,334,764 89,917,048 70,406,799 85,442,765 91,010,243 Expenditures
Current:
General government 3,179,851 3,426,132 4,213,380 3,908,666 4,489,437 Community development 2,186,882 3,969,714 3,427,208 6,062,166 4,642,422 Public safety 24,376,036 26,515,201 28,149,443 29,913,998 32,607,974 Library 115,182 119,733 124,621 116,993 128,069
Public works 2,936,956 2,943,548 3,437,585 4,235,394 4,805,032 Parks and recreation 5,820,120 6,447,370 6,811,941 7,619,147 8,074,112 Streets and highways 1,944,873 3,657,370 3,911,368 2,406,785 6,976,028 Nondepartmental 2,745,157 2,620,108 2,853,407 3,087,315 2,996,435 Capital outlay 7,098,897 6,582,238 13,440,297 11,593,401 19,115,918 Debt service:
Principal repayment 310,581 277,308 129,708 134,307 139,070 Interest and fiscal charges 87,096 101,562 89,384 84,784 80,021 Total Expenditures 50,801,631 56,660,284 66,588,342 69,162,956 84,054,518 Excess (deficiency) of revenues over
(under) expenditures 10,533,133 33,256,764 3,818,457 16,279,809 6,955,725 Other Financing Sources (Uses)
Transfers in 431,526 4,773,733 346,972 753,989 217,000
Transfers (out) (2,037,901) (5,814,933) (1,147,460) (1,117,564) (4,645,255) Issuance of long-term debt 150,000 580,000
Issuance of SBITA
Proceeds from sale of property 1,787 882 589,091 1,000,000 Total other financing sources (uses) (1,456,375) (459,413) (799,606) 225,516 (3,428,255) Net Change in Fund Balances $9,076,758 $32,797,351 $3,018,851 $16,505,325 $3,527,470 Debt service as a percentage of
noncapital expenditures 0.9% 0.7% 0.4% 0.4% 0.3%
166
2020 2021 2022 2023 2024
$46,095,783 $49,951,360 $60,957,368 $66,308,748 $68,203,283 8,434,426 11,329,285 12,795,149 12,139,086 16,458,942
592,613 478,460 468,601 442,332 422,302
4,322,549 906,839 (3,083,699) 4,379,982 9,385,646
9,472,396 16,804,068 17,348,818 15,927,169 26,565,537
25,323,831 35,093,633 37,963,370 33,373,777 41,833,465
547,619 589,850 852,914 1,544,624 2,177,272
94,789,217 115,153,495 127,302,521 134,115,718 165,046,447 5,257,415 6,546,850 8,075,381 9,924,451 12,099,351
5,057,407 5,547,248 5,042,477 4,378,840 5,326,519
36,853,715 38,759,432 46,155,673 45,891,215 48,102,772
130,899 75,421 135,760 153,898 159,214
5,093,797 7,738,420 13,356,878 12,118,575 14,019,873
8,142,074 6,351,451 4,623,634 3,742,659 3,106,823
4,553,139 4,278,286 5,153,928 3,953,457 4,700,282
2,624,979 3,828,297 9,770,845 9,351,502 9,611,308
41,854,768 17,306,911 11,343,816 23,794,169 29,591,082
144,002 115,961 157,176 255,226 318,346
129,403 163,409 85,391 87,780 90,303
109,841,598 90,711,686 103,900,959 113,651,772 127,125,873 (15,052,381) 24,441,809 23,401,562 20,463,946 37,920,574 540,000 496,000 845,514 10,981,244 3,518,770
(1,451,875) (1,190,225) (1,272,327) (11,411,044) (2,840,352) 20,832
58,974 446,372
541,410 97,262 67,500 385,307
(370,465) (694,225) (308,719) (303,326) 1,510,097
($15,422,846) $23,747,584 $23,092,843 $20,160,620 $39,430,671
0.4% 0.4% 0.3% 0.4% 0.4%
167
Licenses Revenue Use of Charges Fines, Forfeits
Fiscal and From Other Money and for and Other
Year Taxes Permits Agencies Property Services Revenue Total 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 2024 68,203,283 16,458,942 26,565,537 9,385,646 41,833,465 2,599,574 165,046,447 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Taxes Licenses and Permits
Revenue From Other Agencies Use of Money and Property
Charges for Services Fines, Forfeits and Other Revenue
168
Fiscal General Public Public Parks and Capital Debt
Year Government (a) Safety Works Recreation Improvement (b) Service Total 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 2024 27,196,392 48,102,772 14,019,873 3,106,823 34,291,364 408,649 127,125,873 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
General Government (a) Public Safety Public Works
Parks and Recreation Capital Improvement (b) Debt Service 169
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) 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% 2024 3,517,108 8,502,339 115,195 12,134,642 (191,572) 1,190 11,944,260 240,535 12,184,795 12,184,795 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
$14,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Unsecured Property Secured Property
170
CITY OF MANTECA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal Year
Total Direct
Rate (4)
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 0.14264 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 2024 1.00000 0.09530 0.03500 0.01350 0.02320 1.16700 0.14408 0.13792 Notes:
Data Source:
San Joaquin
Delta College
District
Yosemite
College
Total Direct
and Overlapping
Tax Rates (2)
San Joaquin County Assessor 2014/15-2023/24 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
2015
2016
2017
2018
2019
Per Hundred $
0 0.2
0.4 0.6
0.8 1
1.2 1.4
1.6 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 171
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 1.62%
Centerpoint Properties Trust Industrial 1.39% Industrial 0.42% The Atherton Manteca LLC Apartments 0.59%
Anson Logistics Assets LLC Warehouse 0.48%
Tesoro Apartments LLC Apartments 0.44%
DP & DK Investment Inc. Shopping Center 0.43%
LLH MRS Master RE LLC Cold Storage 0.40% Cold Storage 0.80% Paseo Apartments LLC Apartments 0.39% Apartments 0.51%
Manteca Lifestyle Center LLC Shopping Center 0.33% Shopping Center 1.53% Tilden-Laurel Glen LLC Apartments 0.31%
Excel Manteca LLC Commercial 0.71%
Mark and Sandra Stagno Residential 0.64%
Prologis Warehouse 0.47%
Edward J & Dolores M Cardoza Trust Shopping Center 0.43% Duke Realty LP Industrial 0.42%
Costco Wholesale Corporation Commercial Store 0.41%
Total 6.38% 6.34%
Source: California Municipal Statistics
2023-2024 2014-2015
172
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 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% 2024 27,637,304 27,637,304 100.00% 0 27,637,304 100.00% 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Total Tax Levy (a) (b) Tax Collections
173
2023-24 Total Local Secured Taxpayers
Assessed Valuation $1,043,111,830
Project Area No. 1
Property Owner Primary Land Use
2023-24 Assessed
Valuation
% of Total
Assessed
Valuation
1 Tilden - Laurel Glen LLC Apartments $37,377,161 3.58% 2 Stonegate Apts LLC Apartments 25,421,133 2.44%
3 Doctors Hospital of Manteca Inc. Hospital 24,950,185 2.39% 4 Edward J. & Dolores M. Cardoza Trust Shopping Center 17,970,476 1.72% 5 Gurjinder Singh & Baljeet Kaur Hotel/Motel 15,754,956 1.51% 6 VFT Properties LLC Apartments 14,951,757 1.43%
7 B.R. Funsten & Co. Corp. Warehouse 14,200,415 1.36%
8 Wal Mart Realty Company Commercial Store 14,082,565 1.35% 9 MP Core Sienna Place LLC Apartments 11,724,964 1.12%
10 Manteca Self Storage Owner LP Public Storage 10,456,020 1.00% 11 Eckert Engineering Corp. Warehouse 9,490,552 0.91%
12 DR Horton Bay Inc. Residential Development 7,567,843 0.73% 13 North Main Storage LLC Public Storage 7,078,907 0.68% 14 KDDC Properties LLC Commercial 6,278,418 0.60%
15 Brocchini Family Partnership Commercial 5,842,683 0.56% 16 Store Master Funding XVI Bowling Alley & Sports Bar 5,789,887 0.56% 17 MN Gianni LLC Commercial 5,558,031 0.53%
18 LS Propco LLC Commercial 5,135,007 0.49%
19 Hensley Investment Company Office Building 5,000,000 0.48% 20 A. E. Kline, Trust Office Building 4,704,373 0.45%
$249,335,333 23.89%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 1
TOP TWENTY ASSESSED VALUES
June 30, 2024
174
2023-24 Total Local Secured Taxpayers
Assessed Valuation $1,859,456,451
Project Area No. 2
Property Owner Primary Land Use
2023-24 Assessed
Valuation
% of Total
Assessed
Valuation
1 DP & DK Investments Inc. Shopping Center $52,537,886 2.83% 2 LLH MRS Master RE LLC Cold Storage 48,549,064 2.61%
3 Colfin 2019 2E Industrial Owner Warehouse 33,238,262 1.79% 4 Prologis Warehouse 32,122,663 1.73%
5 Duke Realty LP Warehouse 28,406,376 1.53%
6 Costco Wholesale Corporation Commercial Store 26,835,714 1.44% 7 JEN California 23 LLC Residential Development 15,570,338 0.84% 8 Yip Holdings Five LLC Shopping Center 15,221,075 0.82% 9 Argo Manteca LLC Shopping Center 14,912,290 0.80%
10 Manteca Associates LP Light Industrial 14,198,628 0.76% 11 Target Corp.Shopping Center 13,518,104 0.73%
12 HD Development of Maryland Inc. Commercial Store 13,034,950 0.70% 13 Manteca Corners LLC Shopping Center 12,115,881 0.65% 14 Kohl's Department Stores Inc. Shopping Center 11,500,000 0.62% 15 Cranbrook Realty Invest Fund LP Warehouse 11,390,082 0.61% 16 MHC 178 LLC Public Storage 11,029,739 0.59%
17 VFT Family Partnership LP Apartments 10,960,874 0.59% 18 Nestle Dreyers Ice Cream Co. Cold Storage 10,285,779 0.55% 19 Brocchini Family Partnership LP Office Building 10,238,644 0.55% 20 Daniel M. & Belinda A. Sarich, Trust Light Industrial 10,212,090 0.55% $395,878,439 21.29%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT PROJECT AREA NO. 2
TOP TWENTY ASSESSED VALUES
June 30, 2024
175
2023-24 Total Local Secured Taxpayers
Assessed Valuation $27,071,560
2005 Merged Project Amended Area
Property Owner Primary Land Use
2023-24
Assessed
Valuation
% of Total
Assessed
Valuation
1 AGS Gasoline LLC AGS Gasoline LLC $3,324,270 12.28%
2 Makhan Sandhu Makhan Sandhu 1,451,358 5.36%
3 Rogelio Castaneda Nava and Veron Castaneda 1,082,500 4.00% 4 Jaswant S. Pannu Jaswant S. Pannu 1,038,962 3.84%
5 National San Joaquin LLC National San Joaquin LLC 998,617 3.69% 6 Major Singh Brar Major Singh Brar 940,000 3.47%
7 Chattarpal S. Pabla Chattarpal S. Pabla 805,000 2.97% 8 Van Tran and Dao Luu Van Tran and Dao Luu 745,000 2.75% 9 David L. Peters David L. Peters 721,112 2.66%
10 MPVCA Manteca LLC MPVCA Manteca LLC 674,982 2.49%
11 Gian S and Ghangu Sandeep Bhangu Gian S and Ghangu Sandeep Bhangu 666,153 2.46% 12 Natalyn J. and Thomas E. Bergman Jr. Natalyn J. and Thomas E. Bergman Jr. 656,468 2.42% 13 James H. Zimmerman James H. Zimmerman 655,126 2.42%
14 Gustavo and Martha Ramirez Gustavo and Martha Ramirez 650,250 2.40% 15 Jasvir and Sarbjit K. Singh Trust Jasvir and Sarbjit K. Singh Trust 644,676 2.38% 16 Alfredo Valenzuela Felix Alfredo Valenzuela Felix 467,772 1.73% 17 David W. Janke David W. Janke 464,100 1.71%
18 Hiway Farm LLC Hiway Farm LLC 414,255 1.53%
19 Ramirez Arturo Vargas Ramirez Arturo Vargas 397,000 1.47% 20 Nicolas and Heather D. Hernandez Nicolas and Heather D. Hernandez 391,242 1.45% $17,188,843 63.48%
Source: California Municipal Statistics, Inc
Rogelio Castaneda Nava and Veron Castaneda
CITY OF MANTECA
MANTECA REDEVELOPMENT MERGED PROJECT AREA
TOP TWENTY ASSESSED VALUES
June 30, 2024
176
2023-24 Total Local Secured Taxpayers
Assessed Valuation $475,474,994
2004 Amended Area
Property Owner Primary Land Use
2023-24 Assessed
Valuation
% of Total
Assessed
Valuation
1 GWR Manteca LLC Water Park/Resort $197,584,823 41.56% 2 The Atherton Manteca LLC Apartments 71,394,194 15.02% 3 Anson Logistics Assets LLC Warehouse 58,470,714 12.30% 4 Manteca Lifestyle Center LLC Shopping Center 40,313,430 8.48% 5 RV Retailer Northern California Real Estate RV Sales 15,300,000 3.22% 6 Big Box Property Owner A LLC Light Industrial 12,573,004 2.64% 7 Cedar Real Estate Group IV LLC Truck Terminal 10,404,000 2.19% 8 Manteca Lodging LLC Shopping Center 10,153,881 2.14%
9 Andreetta Properties LP Food Processing 8,348,905 1.76% 10 JC Penney Properties Inc. Shopping Center 7,955,950 1.67% 11 Tesoro Commons LLC Residential Land 4,080,000 0.86%
12 JEN California 23 LLC Residential Development 2,587,949 0.54% 13 John Pinedo Public Storage 2,495,231 0.52%
14 Manteca Truck Terminal LLC Industrial Land 2,380,288 0.50% 15 Ergonis Land Co. LP Light Industrial 2,366,262 0.50% 16 Plumrose USA Inc. Truck Terminal 2,295,000 0.48%
17 Jarnail Singh Kamboj Vacant 1,942,116 0.41%
18 Rajinder Aulakh Commercial Land 1,530,758 0.32%
19 Valencia Place Apartments LLC Apartments 1,418,074 0.30% 20 Parmvir Sidhu Apartments 1,404,540 0.30%
$454,999,119 95.71%
Source: California Municipal Statistics, Inc
CITY OF MANTECA
MANTECA REDEVELOPMENT AMENDED MERGED PROJECT AREA
TOP TWENTY ASSESSED VALUES
June 30, 2024
177
CITY OF MANTECA
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(in thousands of dollars)
2014 2015 2016 2017 2018
Apparel Stores $39,906 $42,537 $44,158 $46,781 $50,143
General Merchandise 191,787 198,554 203,016 212,248 214,730 Food Stores 27,533 28,535 30,245 30,401 31,540
Eating and Drinking Places 98,018 107,809 116,177 125,661 130,613 Building Materials 109,006 113,578 121,128 128,925 129,723 Auto Dealers and Supplies 125,807 151,717 163,496 168,973 179,318 Service Stations 106,855 90,313 89,246 102,907 122,935
Other Retail Stores 125,611 128,152 130,676 126,974 126,018 All Other Outlets 213,270 226,773 245,295 263,859 294,936 Total $1,037,793 $1,087,968 $1,143,437 $1,206,729 $1,279,956 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. 178
2019 2020 2021 2022 2023
$51,211 $38,668 $62,539 $62,144 $62,017
220,108 213,182 262,639 297,348 281,795
32,195 38,458 37,431 39,132 40,347
140,213 131,768 177,421 196,009 202,745
135,369 138,684 162,761 174,245 158,037
179,014 188,657 238,976 227,734 185,562
130,431 111,817 165,463 209,413 190,702
126,131 134,618 171,905 184,931 180,448
322,087 333,889 452,350 510,963 588,088
$1,336,759 $1,329,741 $1,731,485 $1,901,919 $1,889,741
179
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
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
2023-24 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
180
CITY OF MANTECA
PRINCIPAL SALES TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
IN ALPHABETICAL ORDER
Calendar Year 2023 Calendar Year 2014
A&A Gas & Food Mart Ahmeds Chevron
Amazon Com Services American Modular Systems
Amazon MFA Arco
American Modular Systems B. R. Funsten & Company
Arco Bass Pro Shops Outdoor World
Arco AM PM Cabral Chrysler Jeep Dodge Ram Fiat
Arco AM PM Chevron
B R Funsten & Company Costco
Bass Pro Shops Outdoor World Country Kia
Blue Compass RV Home Depot
Cabral Chrysler Jeep Dodge Ram Fiat J. M. Equipment Company Chevron J C Penney
Chick Fil A Kmart
Core & Main LP Kohls
Costco Manteca Arco
Country Kia Manteca Ford
Great Wolf Lodge Manteca Trailer & Motorhome
Home Depot Quik Stop
J. M. Equipment Company Roberts & Brune Co
Living Spaces Furniture Ross
Manteca Ford Save Mart
Ross Super Stop Gas & Liquor
Target Target
TJ Maxx TJ Maxx
Walmart Supercenter Walmart Supercenter
Percent of fiscal year total paid by top 25 accounts:
55.09% 55.16%
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, TheHdL Companies 181
CITY OF MANTECA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Fiscal Capital Lease Subscription
Year Leases Liabilities Liabilities Total
2015 $960,356 $960,356
2016 1,150,979 1,150,979
2017 905,370 905,370
2018 651,199 651,199
2019 388,165 388,165
2020 115,961 115,961
2021 00
2022 0 $504,872 504,872
2023 0 1,305,330 $103,392 1,408,722
2024 0 902,624 403,417 1,306,041
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) 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 2024 25,105,939 28,170,736 10,684 53,287,359 54,593,400 1.81% 600 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Total Governmental Activities
182
CITY OF MANTECA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2024
2023-24 Assessed Valuation: $12,184,794,133
Total Debt City's Share of
JURISDICTION 6/30/2024 % Applicable (1) Debt 6/30/24
OVERLAPPING TAX AND ASSESSMENT DEBT
San Joaquin Delta Community College District $162,660,000 10.156% $16,519,750 Yosemite Community College District 241,492,298 0.308% 743,796 Manteca Unified School District 262,234,978 52.216% 136,928,616 Ripon Unified School District 32,837,760 7.073% 2,322,615 Manteca Unified School District Community Facilities District No. 1989-2 15,735,000 79.150% 12,454,253 Manteca Unified School District Community Facilities District No. 2000-3 18,115,000 100% 18,115,000 City of Manteca Community Facilities District No. 2023-1, I.A. No. 1 5,825,000 100% 5,825,000 California Statewide Communities Development Authority CFD No. 2012-2 5,720,000 100% 5,720,000 California Statewide Communities Development Authority 1915 Act Bonds 57,608,211 100% 57,608,211 Reclamation District No 17 Assessment District 19,926,427 6.969% 1,388,673 TOTAL OVERLAPPING DEBT $822,154,674 $257,625,914
DIRECT AND OVERLAPPING GENERAL FUND DEBT
San Joaquin County Certificates of Participation $49,210,000 11.235% $5,528,744 Manteca Unified School District Certificates of Participation 11,982,000 52.216% 6,256,521 CITY OF MANTECA GENERAL FUND OBLIGATIONS 0 100.000% 0
Total Gross Direct and Overlapping General Fund Debt $61,192,000 11,785,265 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $11,785,265 (2) OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 83,185,000 100% $83,185,000 TOTAL DIRECT DEBT $0 (2)
TOTAL OVERLAPPING DEBT $352,596,179 (2)
COMBINED TOTAL DEBT $352,596,179 (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 2023-24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.11%
Total Direct Debt 0.00%
Combined Total Debt 2.89%
Ratios to Redevelopment Incremental Valuation ($3,117,669,566) Total Overlapping Tax Increment Debt 2.67%
Source: California Municipal Statistics, Inc.
183
CITY OF MANTECA
COMPUTATION OF LEGAL BONDED DEBT MARGIN
June 30, 2024
ASSESSED VALUATION:
Assessed Value $12,184,795,000
Add back: Exempt real property 0
Total Assessed Valuation $12,184,795,000
BONDED DEBT LIMIT (15.0% OF ASSESSED VALUE) (a) $1,827,719,250 AMOUNT OF DEBT SUBJECT TO LIMIT: 0
LEGAL BONDED DEBT MARGIN $1,827,719,250
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
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%
2024 1,827,719,250 0 1,827,719,250 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.
184
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 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 2024 24,451,854 (23,678,287) 6,384,288 7,157,855 1,630,000 1,117,250 2,747,250 2.61 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Coverage
185
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 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 2024 27,788,557 (26,520,819) 7,289,038 8,556,776 1,895,000 1,391,016 3,286,016 2.60 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Coverage
186
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
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 2024 5,861,798 (a) (b) 4,315,000 (a) 2,551,099 (a) 6,866,099 0.85 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Incremental Revenue Debt Service Payment
187
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 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%
2023 90,917 3,020,305 33,220 5.1% 800,965 11.35%
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%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate
8.00%
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
11.50%
12.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Population as a % of County Population
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Personal Income (in thousands)
$20
$22
$24
$26
$28
$30
$32
$34
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Per Capita Personal Income
188
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% 2,204 1 3.0% City of Manteca 570 4 0.6% 351 5 0.5%
Gardner Trucking Inc. 520 5 0.6% 520 3 0.7%
Doctors Hospital of Manteca 399 6 0.4% 423 4 0.6%
Kaiser Permanente Medical Offices & Hospital 314 7 0.4% 619 2 0.8% Wal-Mart 307 8 0.3% 316 6 0.4%
COSTCO Wholesale #1031 307 8 0.3% 212 9 0.3%
BASS Pro Outdoor World 300 9 0.3%
A.M. Stephens Construction Co., Inc. 257 10 0.3%
C. Overaa & Co. 250 11 0.3%
Eckert Cold Storage 250 11 0.3% 250 7 0.3%
Home Depot 205 12 0.2%
Give Every Child a Chance 183 13 0.2% 170 10 0.2%
Target Corp. 170 14 0.2%
Karma, Inc. (DBA Manteca Care & Rehab) 225 15 0.3% 225 8 0.3% Lassen Canyon Nursery 250 7 0.3%
Total Employees - Principal Employers 6,497 7.3% 5,540 7.5% Total City Population 88,803 (b) 73,787
Source: City of Manteca Community Development Department (Business License) (a) FY 2014-15 MUSD employees included the entire district; FY2022-23 includes only MUSD employees in the City of Manteca. FY2023-24 information is not available (b) Information is from FY2022-23, FY2023-24 information is not available. 2023-24 2014-15
189
CITY OF MANTECA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 41.00 38.00 39.00 40.00 39.00 39.00 65.00 69.00 65.00 64.00 Public safety 132.00 147.00 152.00 151.00 159.00 159.00 162.00 158.00 165.00 165.00 Public works 37.00 35.00 36.00 41.00 44.00 44.00 30.00 27.00 62.00 58.00 Community development 16.00 16.00 21.00 24.00 25.00 25.00 19.00 20.00 20.00 27.00 Parks & recreation 32.00 34.00 36.00 37.00 38.00 38.00 36.00 35.00 32.00 41.00 Water 23.00 25.00 29.00 27.00 27.00 27.00 24.00 26.00 29.00 29.00 Wastewater 33.00 35.00 38.00 38.00 38.00 38.00 34.00 35.00 38.00 41.00 Solid Waste 37.00 37.00 36.00 37.00 37.00 37.00 36.00 38.00 40.00 41.00 Transit 2.00
Total 351.00 367.00 387.00 395.00 407.00 407.00 406.00 408.00 451.00 468.00 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
FTE's
General government Public safety Public works
Community development Parks & recreation Water
Wastewater Transit
190
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CITY OF MANTECA
OPERATING INDICATORS AND CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2015** 2016 2017 2018 2019
Citizens 73,787 73,841 76,247 81,345 83,781
Date of Incorporation May 28,1918 May 28,1918 May 28,1918 May 28,1918 May 28,1918 Form of Government Council/Manager Council/Manager Council/Manager Council/Manager Council/Manager Area 20.92 Sq Miles 20.92 Sq Miles 20.92 Sq Miles 21.45 21.45 Registered Voters 30,975 33,105 36,327 37,775 38,575
Building Permits Issued 3,027 3,418 3,565 4,312 3,653
Employees from Budget Document 351 367 0 0 0
Number of Stations 44444
Number of Reserve Personnel 25 22 20 24 23
Number of Sworn Fire Personnel * 41 49 60 48 48
Number of Calls Answered 6,252 6,682 7,132 7,579 8,230
Number of Stations 11111
Number of Police Officers 64 65 65 67 73
Number of Volunteers 9487627165
Number of Support Personnel 24 29 33 33 40
Number of Calls Answered 35,036 42,717 43,229 42,114 50,094 Park Sites 5865696969
Acres of Parks 367 382 382 465 465
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 5,000 Number of Street Trees 18,000 18,500 18,700 18,700 12,500 Acres of Golf Course 111 111 111 111 111
Public Libraries 11111
Landscape Maintenance Districts 2929292929
Benefit Area District 44444
Community Facility Districts 6 9 101212
Miles of Streets 250 250 259 271 271
Number of Street Lights 5,143 5,405 5,443 5,603 5,603
Number of Meters 21,161 21,696 22,380 22,920 23,329
Miles of Water Mains 266 280 298 299 299
Average Daily Consumptions (Gal) 11.11 MGD 9.89 MGD 10.498 MGD 10.498 MGD 11.943 MGD Number of Connections 20,791 21,325 21,951 22,529 23,094 Miles of Sewer Lines 243 250 257 258 258
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 6 MGD 6.25 MGD 6.21 MGD 6.21 MGD 6.21 MGD Treatment Capacity 9.87 MGD 9.87 MGD 9.87 MGD 9.87MGD 9.87MGD Number of Accounts 20,879 21,411 22,080 22,641 23,215
Elementary Schools 23 23 20 20 20
High Schools 55555
Alternative Schools 33333
Adult Education 1 1 1 1 1
Charter School 11111
Teachers 1,019 1,041 1,092 1,099 1,099
Elementary Classrooms 895 895 899 884 884
High School Classrooms 461 457 457 445 445
Adult Education Classrooms 423 3 3 3
Current Enrollment 22,909 23,981 23,852 23,599 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.
Parks & Recreation
Police Protection
Education
Public Works
Water Utility
Wastewater
Solid Waste
Population
Fire Protection
192
Fiscal Year
2020 2021 2022 2023 2024
Citizens 84,842 87,319 86,859 88,803 90,917
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 21.48 21.48 21.48 22.18
Registered Voters 43,642 44,829 46,145 47,957 39,652
Building Permits Issued 3,740 4,679 4,777 4,319 4,819
Employees from Budget Document 407 406 408 451 468
Number of Stations 5 5 5 5 5
Number of Reserve Personnel 15 5*** 5*** 12 10
Number of Sworn Fire Personnel 49 49 50 50 50
Number of Calls Answered 9,052 10,480 10,852 10,771 11,303 Number of Stations 1 1 1 1 1
Number of Police Officers 73 73 74 74 79
Number of Volunteers 17 (1) 56 61 65 67
Number of Support Personnel 36 38 39 41 44
Number of Calls Answered 46,874 44,791 45,274 43,497 41,552 Park Sites 70 717272 75
Acres of Parks 470 474 480 480 485
Senior Centers 1 1 1 1 1
Swimming Pools 2 2 2 2 2
Tennis Courts 8 8 8 8 8
Pickle Ball Court 111 1
Number of Park/Golf Trees 5,000 5,000 5,000 5,000 5,000 Number of Street Trees 12,675 12,500 12,550 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 16 192324 27
Miles of Streets 275 280 290 290 309
Number of Street Lights 5,650 5,650 5,654 5,771 6,022
Number of Meters 24,906 26,475 28,143 28,612 33,022
Miles of Water Mains 320 338 345 345 359
Average Daily Consumptions (Gal) 13.643 MGD 12.90 MGD 13.21 MGD 12.346 MGD 13.40 MGD Number of Connections 24,411 25,730 27,120 28,612 30,012 Miles of Sewer Lines 272 273 276 278 295
Number of Treatment Plants 1 1 1 1 1
Average Daily Treatment 6.83 MGD 7.30 MGD 7.50 MGD 8.1 MGD 8.35 MGD Treatment Capacity 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD 9.87 MGD Number of Accounts 24,541 25,867 27,264 28,764 30,172
Elementary Schools 19 15 15 15 15
High Schools 5 5 5 5 4
Alternative Schools 2 2 1 1 2
Adult Education 1 0 1 1 1
Charter School 1 0 0 0 0
Teachers 1,242 707 751 730 670
Elementary Classrooms 550 593 549 557 842
High School Classrooms 272 331 352 353 353
Adult Education Classrooms Not Available 21 21 21 21
Current Enrollment 24,061 15,458 15,604 15,935 16,376
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
Parks & Recreation
Population
Fire Protection
Education
Solid Waste
Wastewater
Water Utility
Public Works
193
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MANTECA FINANCING AUTHORITY
BASIC COMPONENT UNIT
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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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 (City), California, as of and for the year ended June 30, 2024, 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, 2024, 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. 197
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. 198
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 22, 2025, 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
May 22, 2025
199
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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. 201
MANTECA FINANCING AUTHORITY
STATEMENT OF NET POSITION
JUNE 30, 2024
2009
Sewer
Revenue Bonds
ASSETS
Current Assets:
Investments held by trustee (Note 2) $2,007,187
Interest receivable 88,230
Total Current Assets 2,095,417
Receivable from the City of Manteca (Note 3) 16,992,813 Total Assets 19,088,230
LIABILITIES
Current Liabilities:
Accrued interest payable 88,230
Lease revenue bonds payable (Note 4):
Due in less than one year 560,000
Total Current Liabilities 648,230
Non-Current Liabilities:
Lease revenue bonds payable (Note 4):
Due in more than one year 18,440,000
Total Liabilities 19,088,230
NET POSITION
Restricted for Debt Service
Total Net Position
See accompanying notes to financial statements
202
MANTECA FINANCING AUTHORITY
STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
2009
Sewer
Revenue Bonds
OPERATING REVENUE
Interest on base rental payments $958,803
Total Operating Revenue 958,803
OPERATING EXPENSES
Interest and fiscal fees 1,058,763
Total Operating Expenses 1,058,763
Operating Loss (99,960)
NONOPERATING INCOME
Interest on investments 99,960
Net Nonoperating Income 99,960
Change in net position
Net position at beginning of year
Net position at end of year
See accompanying notes to financial statements
203
MANTECA FINANCING AUTHORITY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
2009
Sewer
Revenue Bonds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from the City $1,015,459
Payments to bond trustees (1,058,763)
Cash Flows from Operating Activities (43,304)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment interest received 99,960
Cash Flows from Investing Activities 99,960
Net Cash Flows 56,656
Cash and investments at beginning of period 1,950,531
Cash and investments at end of period $2,007,187
Reconciliation of operating loss to net cash flows
from operating activities:
Operating loss ($99,960)
Change in assets:
Receivables, net 56,656
Cash Flows from Operating Activities ($43,304)
See accompanying notes to financial statements
204
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization and Purpose
The Manteca Financing Authority (Authority) is a Joint Powers Authority organized by the City of Manteca (City) and the Manteca Redevelopment Agency (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. 205
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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. 206
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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) $2,007,187
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, 2024, 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, 2024, have an average maturity of 6 days. 207
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024.
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
2025 $560,000 $948,871 $1,508,871
2026 640,000 919,221 1,559,221
2027 720,000 885,221 1,605,221
2028 810,000 846,465 1,656,465
2029 905,000 801,953 1,706,953
2030-2034 5,330,000 3,184,536 8,514,536
2035-2037 10,035,000 405,874 10,440,874
$19,000,000 $7,992,141 26,992,141
Less:
Investments held by trustee 2,007,187
Amount representing interest 7,992,141
Receivable from the City of Manteca June 30, 2024 $16,992,813 208
MANTECA FINANCING AUTHORITY
NOTES TO BASIC COMPONENT UNIT FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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
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 905,000 898,194 1,803,194
2030-2034 5,330,000 3,665,741 8,995,741
2035-2037 10,035,000 887,079 10,922,079
Total $19,000,000 $9,435,756 $28,435,756
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