Cities Index.
Agenda, regular meeting

McFarland City Council
July 27, 2023

Document
Agenda, regular meeting
Meeting
July 27, 2023
Body
McFarland City Council
Pages
10
Original file
11.8 MB
Text extracted from the city's file for reading and search. Open the original on mcfarlandca.api.civicclerk.com. That file is the official record.

AMENDED
AGENDA

MCFARLAND CITY COUNCIL MCFARLAND

SUCCESSOR AGENCY MCFARLAND PUBLIC

FINANCE AUTHORITY MCFARLAND

IMPROVEMENT AUTHORITY MCFARLAND

PARKING AUTHORITY

REGULAR MEETING
CITY COUNCIL CHAMBERS July 27, 2023
103 W. SHERWOOD AVE, MCFARLAND, CA 6:00 PM
In Person Meeting
How to submit public comments:

The meetings of the City Council and all municipal entities, commissions, and boards (“the City”) are open to the public. At regularly scheduled meetings, members of the public may address the city on any item listed on the agenda, or on any non-listed matter over which the city has jurisdiction. At special or emergency meetings, members of the public may only address the city on items listed on the agenda.

There is a time limitation of two minutes per person. For any item that is not on the agenda and within the jurisdiction or interest of the city, please come to the podium at this time. The Brown Act does not permit any action or discussion on items not listed on the agenda. If you wish to speak regarding a scheduled agenda item, please come to the podium when the item number and subject matter are announced, and the mayor opens Public Comment on the item. When recognized, please begin by providing your name and address for the record (optional). Anyone wishing to submit written information at the meeting needs to furnish ten (10) copies to the City Clerk in advance to allow for distribution to City Council, staff, and the media. Willful disruption of the meeting shall not be permitted. If the Mayor finds that there is in fact willful disruption of any City Council Meeting, he/she may order the disrupting parties out of the room and subsequently conduct the City’s business without them present.

Americans with Disabilities Act:

In compliance with the ADA, if you need special assistance to participate in a city meeting or other services offered by the City, please contact the City Clerk’s office, at (661) 792-3091 ext. 2135.

Notification of at least 48 hours prior to the meeting, or time when services are needed, will assist the city staff in assuring those reasonable arrangements can be made to provide accessibility to the meeting or services.

CALL TO ORDER: Mayor Saul Ayon
ROLL CALL:

Mayor, Saul Ayon
Vice Mayor, Ricardo Cano
Council Member/Board Member, Amador Ayon
Council Member/ Board Member, Anita Gonzalez
Council Member/Board Member, Maria T. Pérez
INVOCATION: Pastor Bustillo

PLEDGE OF ALLEGIANCE
INTERPRETATION: If you need an interpretation of your communications to the City Council into English, please contact the City Clerk Department at 661-792-3091 ext. 2135 or via email at [email protected] . Subject to availability, notifying at least 48 hours before will usually enable the City to make arrangements.

PRESENTATIONS, INTRODUCTIONS AND AWARDS

1. Kaitlyn’s Law, Child in Motor Vehicle Safety Act
-Joe Appleton, Division Chief -Kern County Fire Department PUBLIC COMMENT: At regularly scheduled meetings, members of the public may address the city on any item listed on the agenda, or on any non-listed matter over which the city has jurisdiction. Council/Board Members may respond briefly to statements made or questions posed. They may ask a question for clarification; may refer the item to staff for further study or for placement on a future agenda. Speakers are limited to two minutes for each person. Please state your name and address for the record prior to making a presentation. Fifteen minutes total will be allowed for any one subject.

DEPARTMENTAL REPORTS
None
CONSENT AGENDA: The Consent Agenda consists of items that in staff’s opinion are routine and noncontroversial. These items are approved in one motion unless a Council Member/ Board Member or Member from the Public requests to remove a particular item.

2. Approval of Expense Report in the Amount of $218,625.23 from July 5, 2023 to July 18, 2023.

3. Approval of June 22, 2023 Meeting Minutes.

PUBLIC HEARINGS

4. Introduction and First Reading of Ordinance No. 0006-2023 AN ORDINANCE OF THE CITY OF MCFARLAND ADDING CHAPTER 8.22 AND AMENDING CHAPTERS 10.14.020,

18.04.010 AND 18.08 OF THE MCFARLAND MUNICIPAL CODE RELATING TO CODE COMPLIANCE.
• Staff Report: Community Development Director, Paul Saldana a. Open Public Hearing and Receive Public Testimony:
b. Close Public Hearing:
c. Motion to Waive the Reading of the Ordinance Text in its Entirety, Read by Title Only, and Introduce for Reading Ordinance No. 0006-2023 AN ORDINANCE OF THE CITY OF MCFARLAND ADDING CHAPTER 8.22 AND AMENDING CHAPTERS 10.14.020,

18.04.010 AND 18.08 OF THE MCFARLAND MUNICIPAL CODE RELATING TO CODE COMPLIANCE.
d. Direct Staff to Schedule Second Reading and Adoption of Ordinance No. 0006-2023 for the Next Regular City Council Meeting of August 10, 2023.

ADMINISTRATIVE AGENDA

5. Report, Discuss, and Possible Approval of the Audited Financial Statements for the Period Ending June 30, 2022, for the City of McFarland.
a. Presentation by Berrett Warnick, of Clifton Larson Allen LLP.

6. Report, Discuss, and Approve Resolution No. 2023-0090 A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF MCFARLAND TO ACCEPT THE BID SUBMITTED BY BOWMAN ASPHALT, INC. FOR THE 2023 STREET REHABILITATION - VARIOUS LOCATIONS PROJECT IN THE AMOUNT OF $799,565.00 AND AUTHORIZING THE

CITY MANAGER TO SIGN AND EXECUTE THE CONSTRUCTION AGREEMENT, ALLOCATE FUNDS FOR THE BID, AND UP TO $159,914.00 FOR CONTINGENCY, CONSTRUCTION MANAGEMENT AND MATERIALS SAMPLING & TESTING. a. Q & A -Juan Pantoja, Resident Engineer of BHT Engineering Inc.

7. Report, Discuss, and Possibly Approve the Employment Agreement Between the City of McFarland and Adam Cabrera for the Assistant Public Works Director Position.

8. Report, Discuss, and Possibly Approve Resolution No. 2023-0089 A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING FUNDS FROM THE CITYS COMMUNITY GRANTS PROGRAM TO THE MCFARLAND LIONS CLUB #2351.

REPORTS FROM CITY COUNCIL ON COMMITTEE/SPECIAL DISTRICT MEETINGS a. Kern Council of Governments (KCOG)
b. Kern Economic Development Corp. (KEDC)
c. Kern Local Agency Formation Commission (LAFCO)
d. Delano Mosquito Abatement District (DMAD)
e. Poso Creek (IRWMP)
f. San Joaquin Valley Air Pollution Control District (SJV) g. Public Policy and Finance Committee
h. Public Safety Committee
i. Quality of Life Committee
j. Cannabis Committee

COUNCIL STATEMENTS AND REPORTS
On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. In addition, Council Members may ask a question of staff or the public for clarification on any matter, provide a reference to staff or other resources for information.

Alternatively, request staff to report to the City Council at a later meeting concerning any matter.

Furthermore, the City Council, or any member thereof, may take action to direct staff to place a matter of business on a future agenda.

CLOSED SESSION

1. Conference with Legal Counsel – Anticipated Litigation - Significant exposure to litigation pursuant to Government Code §54956.9(b): four potential cases

ADJOURNMENT
This is to certify this agenda was posted at McFarland City Hall on July 24, 2023. __________________________
Francisca Alvarado, City Clerk
_______________________________________________________ Diego Viramontes, Finance Director & Administrator Pro Tempore Next Meeting: Regular City Council August 10, 2023.

The City of McFarland does not discriminate based on disability and complies with the provisions of the Americans with Disabilities Act (ADA). If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (661) 792-3091 at least 48 hours prior to the meeting to make reasonable arrangements to ensure accessibility to this meeting.

All agenda item and/or supporting documentation is available for public review on the city website at www.mcfarlandcity.org and the office of the City Clerk of the City of McFarland, at 401 W, Kern Ave. McFarland, CA 93250 during regular business hours of 8:00 am – 5:00 pm Monday through Friday, following the posting of the agenda. Any supporting documentation related to an agenda item for an open session of any regular meeting that is distributed after the agenda is posted and prior to the meeting will also be available for review at the same location and available at the meeting.

PROCLAMATION
KAITLYN’S LAW AWARENESS
WHEREAS, The City Council of the City of McFarland acknowledges its responsibility to safeguard and enhance the quality of life for all residents, particularly the most vulnerable among us; and
WHEREAS, California Senate Bill 255, known as Kaitlyn's Law, is a significant piece of legislation aimed at the prevention of tragedies by enforcing specific rules regarding child safety in vehicles; and
WHEREAS, Kaitlyn's Law was enacted in response to the tragic loss of young Kaitlyn, who lost her life after being left unattended in a parked vehicle, and prohibits the leaving of a child six years of age or younger unattended in a motor vehicle without the supervision of a person 12 years of age or older; and
WHEREAS, This law underscores the dangers of leaving children unattended in vehicles, including risks of abduction, injury, dehydration, and death, particularly due to heatstroke in hot weather; and
WHEREAS, The City of McFarland recognizes the importance of such legislation and commends the State Legislature for their enduring commitment to enhancing child safety; THEREFORE, The City of McFarland City Council Does Hereby Proclaim its full support for California Senate Bill 255, Kaitlyn's Law and urges community members to familiarize themselves with its provisions and strictly adhere to its regulations, not merely as a legal obligation, but as a commitment to the safety and well-being of our children.

Proclaimed this 27th day of July, year 2023.

__________________________________________
Saul Ayon, Mayor of the City of McFarland
7/21/2023 3:55:47 PM Page 1 of 14
Expense Approval Report
City of McFarland, CA By Vendor Name
Payment Dates 7/5/2023 - 7/18/2023
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: A Sign Factory - A Sign Factory
A Sign Factory INV 9279 07/06/2023 INV 9279 Explorer Panel, Decal…01-150-56600-0000-1 6,237.37 Vendor A Sign Factory - A Sign Factory Total: 6,237.37
Vendor: Advanced Data Storag - Advanced Data Storage, Inc.

Advanced Data Storage, Inc. INV 0167268 07/06/2023 ADS INV 0167268 Service Con… 01-150-52200-0000-1 41.40 Advanced Data Storage, Inc. INV0167268 07/11/2023 INV 0167268 Service Console 01-150-52200-0000-1 41.40 Vendor Advanced Data Storag - Advanced Data Storage, Inc. Total: 82.80 Vendor: AMANDA POLLOCK - AMANDA POLLOCK
AMANDA POLLOCK INV0024237 07/11/2023 Deposit Refund for Rental on … 01-24000-0000-1 350.00 Vendor AMANDA POLLOCK - AMANDA POLLOCK Total: 350.00
Vendor: American Fidelity - American Fidelity
American Fidelity INV0024244 07/13/2023 American Fidelity Accident 2* …30-22800-0000-1 27.45 American Fidelity INV0024244 07/13/2023 American Fidelity Accident 2* …34-22800-0000-1 15.41 American Fidelity INV0024245 07/13/2023 Life 1 30-22900-0000-1 15.43 American Fidelity INV0024245 07/13/2023 Life 1 34-22900-0000-1 9.81 American Fidelity INV0024246 07/13/2023 American Fidelity - Disability I…01-22700-0000-1 25.29 American Fidelity INV0024246 07/13/2023 American Fidelity - Disability I…30-22700-0000-1 87.62 American Fidelity INV0024246 07/13/2023 American Fidelity - Disability I…31-22700-0000-1 9.89 American Fidelity INV0024246 07/13/2023 American Fidelity - Disability I…32-22700-0000-1 44.80 American Fidelity INV0024246 07/13/2023 American Fidelity - Disability I…34-22700-0000-1 30.76 American Fidelity INV0024247 07/13/2023 Health FSA 01-22600-0000-1 60.57 American Fidelity INV0024247 07/13/2023 Health FSA 30-22600-0000-1 83.07 American Fidelity INV0024247 07/13/2023 Health FSA 31-22600-0000-1 50.19 American Fidelity INV0024247 07/13/2023 Health FSA 32-22600-0000-1 108.08 American Fidelity INV0024248 07/13/2023 Life 1 01-22900-0000-1 26.33 American Fidelity INV0024248 07/13/2023 Life 1 30-22900-0000-1 55.26 American Fidelity INV0024248 07/13/2023 Life 1 31-22900-0000-1 10.63 American Fidelity INV0024248 07/13/2023 Life 1 32-22900-0000-1 24.63 American Fidelity INV0024248 07/13/2023 Life 1 34-22900-0000-1 34.33 American Fidelity INV0024249 07/13/2023 Life 2 30-22900-0000-1 20.54 American Fidelity INV0024249 07/13/2023 Life 2 34-22900-0000-1 13.85 American Fidelity INV0024265 07/13/2023 Cancer 1 American Fidelity 30-22950-0000-1 5.54 American Fidelity INV0024266 07/13/2023 Cancer 1 American Fidelity 34-22950-0000-1 8.12 American Fidelity INV0024267 07/13/2023 Cancer 1 American Fidelity 01-22950-0000-1 0.88 American Fidelity INV0024267 07/13/2023 Cancer 1 American Fidelity 30-22950-0000-1 2.62 American Fidelity INV0024267 07/13/2023 Cancer 1 American Fidelity 31-22950-0000-1 2.62 American Fidelity INV0024267 07/13/2023 Cancer 1 American Fidelity 32-22950-0000-1 2.59 American Fidelity INV0024268 07/13/2023 Cancer 2* - American Fidelity … 30-22950-0000-1 16.50 American Fidelity INV0024269 07/13/2023 Cancer 2* - American Fidelity … 34-22950-0000-1 16.65 American Fidelity INV0024279 07/13/2023 American Fidelity Accident 1 01-22800-0000-1 27.64 American Fidelity INV0024280 07/13/2023 Life 1 01-22900-0000-1 9.81 American Fidelity INV0024281 07/13/2023 American Fidelity - Disability I…01-22700-0000-1 227.63 American Fidelity INV0024282 07/13/2023 Life 1 01-22900-0000-1 99.17 American Fidelity INV0024283 07/13/2023 Life 2 01-22900-0000-1 24.00 American Fidelity INV0024303 07/13/2023 Cancer 1 American Fidelity 01-22950-0000-1 13.53 Vendor American Fidelity - American Fidelity Total: 1,211.24 Vendor: American Office Solu - American Office Solutions, LLC American Office Solutions, LLC INV 21004 07/05/2023 INV 21004 City Council Ticket 01-310-52200-0000-1 350.96 American Office Solutions, LLC INV 21005 07/05/2023 INV 21005 Police Dept Back-U… 01-310-52200-0000-1 182.93 American Office Solutions, LLC INV 21014 07/05/2023 INV 21014 City Hall Roundtrip… 01-310-52200-0000-1 500.00 American Office Solutions, LLC INV 21018 07/05/2023 INV 21018 Breakroom Cleanup…01-310-52200-0000-1 324.75 American Office Solutions, LLC INV 21019 07/05/2023 INV 21019 Break Room Clean … 01-310-52200-0000-1 417.85 American Office Solutions, LLC INV 20986 07/06/2023 INV 20986 City Hall Project 12… 01-310-52200-0000-1 2,300.00 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 2 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount American Office Solutions, LLC INV 21020 07/06/2023 INV 21020 20hrs Project Labor…01-310-52200-0000-1 4,000.00 Vendor American Office Solu - American Office Solutions, LLC Total: 8,076.49 Vendor: Auto Zone - Auto Zone
Auto Zone INV 6270468708 07/06/2023 INV 6270468708 A/C Thermo… 01-150-56600-0000-1 8.31 Auto Zone INV 6270578963 07/06/2023 INV 6270578963 Battery 01-150-56600-0000-1 179.53 Auto Zone INV 6270584127 07/06/2023 INV 6270584127 Antifreeze, F… 01-150-56600-0000-1 101.93 Auto Zone INV 6270603519 07/06/2023 INV 6270603519 Antifreeze a… 01-150-56600-0000-1 82.10 Auto Zone INV 6270603528 07/06/2023 INV 6270603528 Flo Tool Med…01-150-56600-0000-1 2.13 Auto Zone INV 6270604145 07/06/2023 INV 6270604145 Washer Fluid,…01-150-56600-0000-1 43.95 Auto Zone INV 6270605320 07/06/2023 INV 6270605320 Battery, Wh… 01-150-56600-0000-1 193.07 Auto Zone INV 6270610089 07/06/2023 INV 6270610089 Wiper Blade 01-150-56600-0000-1 31.94 Auto Zone INV 6270628553 07/06/2023 INV 6270628553 Washer Fluid,…01-150-56600-0000-1 23.58 Auto Zone INV 6270638295 07/06/2023 INV 6270638295 Sealant, Wh… 01-150-56600-0000-1 194.20 Auto Zone INV 6270639670 07/06/2023 INV 6270639670 Battery 01-150-56600-0000-1 167.28 Auto Zone INV 6270643736 07/06/2023 INV 6270643736 Brake Cleane…01-150-56600-0000-1 11.99 Auto Zone INV 6270646577 07/06/2023 INV 6270646577 Vehicle Main…01-150-56600-0000-1 49.78 Auto Zone INV 6270665849 07/06/2023 INV 6270665849 Steering Wh… 01-150-56600-0000-1 25.85 Auto Zone INV 6270679885 07/06/2023 INV 6270679885 Motor Oil 01-150-56600-0000-1 7.82 Vendor Auto Zone - Auto Zone Total: 1,123.46
Vendor: Best Digital Solutio - Best Digital Solutions, LLC Best Digital Solutions, LLC INV 1144 07/05/2023 INV 1144 June 2023 Contract … 30-500-52200-0000-1 230.37 Best Digital Solutions, LLC INV 1144 07/05/2023 INV 1144 June 2023 Postage &…30-500-55600-0000-1 592.89 Best Digital Solutions, LLC INV 1144 07/05/2023 INV 1144 June 2023 Contract … 31-505-52200-0000-1 230.37 Best Digital Solutions, LLC INV 1144 07/05/2023 INV 1144 June 2023 Postage &…31-505-55600-0000-1 592.89 Best Digital Solutions, LLC INV 1144 07/05/2023 INV 1144 June 2023 Contract … 32-510-52200-0000-1 231.07 Best Digital Solutions, LLC INV 1144 07/05/2023 INV 1144 June 2023 Postage &…32-510-55600-0000-1 594.66 Vendor Best Digital Solutio - Best Digital Solutions, LLC Total: 2,472.25 Vendor: BHT Engineering, Inc - BHT Engineering, Inc.

BHT Engineering, Inc. INV 23-180 07/06/2023 INV 23-180 W. KERN AVE PRO… 01-140-52200-0000-1 2,943.50 Vendor BHT Engineering, Inc - BHT Engineering, Inc. Total: 2,943.50 Vendor: Brandon Shankle - Brandon Shankle
Brandon Shankle INV0024222 07/06/2023 07-05-23 Brandon Shankle Fuel 01-150-54000-0000-1 400.00 Brandon Shankle INV0024227 07/10/2023 Per Diem Shankle July 9-22 20… 01-150-52010-0000-1 737.50 Vendor Brandon Shankle - Brandon Shankle Total: 1,137.50 Vendor: Brenntag - Brenntag Pacific Inc.

Brenntag Pacific Inc. INV BPI341470 07/11/2023 INV BPI341470 L A Chemchlor… 32-510-57400-0000-1 1,358.29 Vendor Brenntag - Brenntag Pacific Inc. Total: 1,358.29 Vendor: DEL100 - Brianahi DeLeon
Brianahi DeLeon INV0024225 07/06/2023 Community Garden Ribbon Cu…01-140-55200-0000-1 125.27 Vendor DEL100 - Brianahi DeLeon Total: 125.27
Vendor: BSK ASSOCIATES - BSK ASSOCIATES
BSK ASSOCIATES INV AG15128 07/11/2023 INV AG15128 BOD & TSS-WW… 30-500-57400-0000-1 150.00 Vendor BSK ASSOCIATES - BSK ASSOCIATES Total: 150.00
Vendor: CA Department of Jus - CA Department of Justice CA Department of Justice Inv. 661951 07/11/2023 Inv. 661951 Live Scan - Comm… 01-130-56000-0000-1 32.00 CA Department of Justice Inv. 661951 07/11/2023 Inv. 661951 Live Scan - Public… 01-180-56000-0000-1 64.00 Vendor CA Department of Jus - CA Department of Justice Total: 96.00 Vendor: CA DCSS - California Dept of Child Support Services California Dept of Child Suppo…INV0024302 07/13/2023 CA Dept Child Support Services 01-22350-0000-1 369.23 Vendor CA DCSS - California Dept of Child Support Services Total: 369.23 Vendor: California Police - California Police
California Police INV 1721 07/06/2023 INV 1721 2023-2024 CPCA Ret…01-150-53200-0000-1 50.00 California Police INV 23207 07/06/2023 INV 23207 2023-2024 CPCA D… 01-150-53200-0000-1 365.00 Vendor California Police - California Police Total: 415.00 Vendor: Cannon - Cannon Corporation
Cannon Corporation INV 84918 07/11/2023 INV 84918 Professional Servic… 30-500-52200-0000-1 360.00 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 3 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Cannon Corporation INV 84919 07/11/2023 INV 84919 Win-911 Troublesh…30-500-52200-0000-1 585.00 Vendor Cannon - Cannon Corporation Total: 945.00
Vendor: Central Valley Offic - Central Valley Office Supply Inc Central Valley Office Supply Inc INV 0343521-001 07/11/2023 INV 0343521-001 CVOS Printer…01-115-57200-0000-1 30.05 Central Valley Office Supply Inc INV 0343521-001 07/11/2023 INV 0343521-001 CVOS Printer…30-500-57200-0000-1 90.14 Central Valley Office Supply Inc INV 0343521-001 07/11/2023 INV 0343521-001 CVOS Printer…31-505-57200-0000-1 90.15 Central Valley Office Supply Inc INV 0343521-001 07/11/2023 INV 0343521-001 CVOS Printer…32-510-57200-0000-1 90.15 Vendor Central Valley Offic - Central Valley Office Supply Inc Total: 300.49 Vendor: Cintas - Cintas Corporation No.3
Cintas Corporation No.3 INV 5163495138 07/06/2023 INV 5163495138 Cintas 01-150-51800-0000-1 105.62 Cintas Corporation No.3 INV 4160914968 07/11/2023 INV 4160914968 Garment Re… 01-180-51800-0000-1 68.12 Cintas Corporation No.3 INV 4160914968 07/11/2023 INV 4160914968 Garment Re… 20-200-51800-0000-1 13.44 Cintas Corporation No.3 INV 4160914968 07/11/2023 INV 4160914968 Garment Re… 30-500-51800-0000-1 50.41 Cintas Corporation No.3 INV 4160914968 07/11/2023 INV 4160914968 Garment Re… 32-510-51800-0000-1 16.14 Vendor Cintas - Cintas Corporation No.3 Total: 253.73
Vendor: CITY OF WASCO - CITY OF WASCO
CITY OF WASCO INV 10390 07/11/2023 INV 10390 CNG Fueling Station…01-165-54000-0000-1 103.10 CITY OF WASCO INV 10390 07/11/2023 INV 10390 CNG Fueling Station…30-500-54000-0000-1 302.35 CITY OF WASCO INV 10430 07/11/2023 INV 10430 CNG Fueling Station…01-165-54000-0000-1 54.96 CITY OF WASCO INV 10430 07/11/2023 INV 10430 CNG Fueling Station…30-500-54000-0000-1 126.45 CITY OF WASCO INV 10430 07/11/2023 INV 10430 CNG Fueling Station…32-510-54000-0000-1 135.21 Vendor CITY OF WASCO - CITY OF WASCO Total: 722.07
Vendor: CivicPlus - CivicPlus LLC
CivicPlus LLC Inv 259536 07/05/2023 Inv 259536 Admin Support Fee…01-111-52200-0000-1 350.00 CivicPlus LLC INV 252880 07/06/2023 INV 252880 Annual City Websi…01-130-56000-0000-1 13,325.75 Vendor CivicPlus - CivicPlus LLC Total: 13,675.75
Vendor: CLA - CLIFTONLARSONALLEN LLP
CLIFTONLARSONALLEN LLP INV 3791962 07/06/2023 INV 3791962 Audit Services Ju…01-130-56050-0000-1 2,659.80 CLIFTONLARSONALLEN LLP INV 3791962 07/06/2023 INV 3791962 Audit Services Ju…30-500-56050-0000-1 2,659.80 CLIFTONLARSONALLEN LLP INV 3791962 07/06/2023 INV 3791962 Audit Services Ju…31-505-56050-0000-1 1,227.60 CLIFTONLARSONALLEN LLP INV 3791962 07/06/2023 INV 3791962 Audit Services Ju…32-510-56050-0000-1 2,762.10 CLIFTONLARSONALLEN LLP INV 3791962 07/06/2023 INV 3791962 Audit Services Ju…34-520-56050-0000-1 920.70 Vendor CLA - CLIFTONLARSONALLEN LLP Total: 10,230.00
Vendor: Cofer & Oberlies - Cofer & Oberlies
Cofer & Oberlies INV 98124 07/11/2023 INV 98124 Repair Key Pad & S… 01-190-56400-0000-1 426.00 Cofer & Oberlies INV 98928 07/11/2023 INV 98928 Repair/Service Gate…01-190-56400-0000-1 450.00 Vendor Cofer & Oberlies - Cofer & Oberlies Total: 876.00 Vendor: Consolidated Electri - Consolidated Electrical Distributors, Inc Consolidated Electrical Distrib… INV 0332-1071374 07/06/2023 INV 0332-1071374 30-500-56410-0000-1 2,653.56 Vendor Consolidated Electri - Consolidated Electrical Distributors, Inc Total: 2,653.56 Vendor: Continental Labor Re - Continental Labor Resources, Inc.

Continental Labor Resources, … INV 3004342 07/06/2023 INV 3004342 B.LOPEZ PPE 6/3… 20-200-52200-0000-1 1,024.00 Continental Labor Resources, … INV 3004539 07/11/2023 INV 3004539 Lopez Bernardin… 20-200-52200-0000-1 1,075.20 Continental Labor Resources, … INV 3004847 07/11/2023 INV 3004847 Lopez Bernardin… 20-200-52200-0000-1 1,141.38 Continental Labor Resources, … INV 3004702 07/12/2023 INV 3004702 Lopez Bernardin… 20-200-52200-0000-1 1,244.54 Vendor Continental Labor Re - Continental Labor Resources, Inc. Total: 4,485.12 Vendor: Core & Main LP - Core & Main LP
Core & Main LP INV 0001843 07/11/2023 INV 0001843 Water Based Inv… 32-510-57400-0000-1 545.70 Vendor Core & Main LP - Core & Main LP Total: 545.70
Vendor: KCPW - County of Kern Public Works
County of Kern Public Works INV 34082-IN 07/11/2023 INV 34082-IN Municipal Waste…01-180-58050-0000-1 299.28 Vendor KCPW - County of Kern Public Works Total: 299.28 Vendor: Daniels Tire Service - Daniels Tire Service
Daniels Tire Service INV 240163893 07/06/2023 INV 240163893 Tire Service 01-150-56600-0000-1 1,479.03 Daniels Tire Service INV 240163959 07/06/2023 INV 240163959 Tire Service 01-150-56600-0000-1 331.75 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 4 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Daniels Tire Service INV 240164503 07/11/2023 INV 240164503 Tire Service C… 01-165-56600-0000-1 678.57 Vendor Daniels Tire Service - Daniels Tire Service Total: 2,489.35 Vendor: Darrells - Darrells Automotive
Darrells Automotive INV 50977 07/06/2023 INV 50977 Parts and Labor 01-150-56600-0000-1 3,972.87 Vendor Darrells - Darrells Automotive Total: 3,972.87
Vendor: De Lapide and Ass. I - De Lapide and Ass. Inc
De Lapide and Ass. Inc Inv No 23-144 07/06/2023 Inv No 23-144- Annexation #19 01-140-56000-0000-1 5,000.00 Vendor De Lapide and Ass. I - De Lapide and Ass. Inc Total: 5,000.00 Vendor: EDD - EDD
EDD INV0024272 07/13/2023 State Income Tax Withholding 01-22200-0000-1 807.12 EDD INV0024272 07/13/2023 State Income Tax Withholding 30-22200-0000-1 489.59 EDD INV0024272 07/13/2023 State Income Tax Withholding 31-22200-0000-1 205.75 EDD INV0024272 07/13/2023 State Income Tax Withholding 32-22200-0000-1 323.46 EDD INV0024272 07/13/2023 State Income Tax Withholding 34-22200-0000-1 29.81 EDD INV0024273 07/13/2023 SDI - State Disability Insurance 01-22200-0000-1 239.22 EDD INV0024273 07/13/2023 SDI - State Disability Insurance 20-22200-0000-1 12.76 EDD INV0024273 07/13/2023 SDI - State Disability Insurance 30-22200-0000-1 161.69 EDD INV0024273 07/13/2023 SDI - State Disability Insurance 31-22200-0000-1 64.35 EDD INV0024273 07/13/2023 SDI - State Disability Insurance 32-22200-0000-1 165.98 EDD INV0024273 07/13/2023 SDI - State Disability Insurance 34-22200-0000-1 16.03 EDD INV0024274 07/13/2023 State Unemployment Insuran… 01-22250-0000-1 6.74 EDD INV0024274 07/13/2023 State Unemployment Insuran… 30-22250-0000-1 10.10 EDD INV0024274 07/13/2023 State Unemployment Insuran… 31-22250-0000-1 6.74 EDD INV0024274 07/13/2023 State Unemployment Insuran… 32-22250-0000-1 67.92 EDD INV0024275 07/13/2023 Employment Training Tax 01-22275-0000-1 0.16 EDD INV0024275 07/13/2023 Employment Training Tax 30-22275-0000-1 0.25 EDD INV0024275 07/13/2023 Employment Training Tax 31-22275-0000-1 0.17 EDD INV0024275 07/13/2023 Employment Training Tax 32-22275-0000-1 1.71 EDD INV0024306 07/13/2023 State Income Tax Withholding 01-22200-0000-1 2,029.36 EDD INV0024306 07/13/2023 State Income Tax Withholding 30-22200-0000-1 4.65 EDD INV0024306 07/13/2023 State Income Tax Withholding 32-22200-0000-1 4.68 EDD INV0024307 07/13/2023 SDI - State Disability Insurance 01-22200-0000-1 607.29 EDD INV0024307 07/13/2023 SDI - State Disability Insurance 30-22200-0000-1 1.89 EDD INV0024307 07/13/2023 SDI - State Disability Insurance 32-22200-0000-1 1.92 EDD INV0024308 07/13/2023 State Unemployment Insuran… 01-22250-0000-1 48.52 EDD INV0024309 07/13/2023 Employment Training Tax 01-22275-0000-1 1.21 EDD INV0024313 07/13/2023 State Income Tax Withholding 30-22200-0000-1 420.36 EDD INV0024314 07/13/2023 SDI - State Disability Insurance 30-22200-0000-1 60.75 Vendor EDD - EDD Total: 5,790.18
Vendor: EFTPS - Electronic Federal Tax Payment System
Electronic Federal Tax Paymen…INV0024270 07/13/2023 Federal Income Tax Withholdi… 01-22050-0000-1 2,050.67 Electronic Federal Tax Paymen…INV0024270 07/13/2023 Federal Income Tax Withholdi… 30-22050-0000-1 1,370.74 Electronic Federal Tax Paymen…INV0024270 07/13/2023 Federal Income Tax Withholdi… 31-22050-0000-1 438.98 Electronic Federal Tax Paymen…INV0024270 07/13/2023 Federal Income Tax Withholdi… 32-22050-0000-1 748.89 Electronic Federal Tax Paymen…INV0024270 07/13/2023 Federal Income Tax Withholdi… 34-22050-0000-1 117.75 Electronic Federal Tax Paymen…INV0024271 07/13/2023 Social Security 01-22100-0000-1 3,295.28 Electronic Federal Tax Paymen…INV0024271 07/13/2023 Social Security 20-22100-0000-1 175.78 Electronic Federal Tax Paymen…INV0024271 07/13/2023 Social Security 30-22100-0000-1 2,227.32 Electronic Federal Tax Paymen…INV0024271 07/13/2023 Social Security 31-22100-0000-1 886.36 Electronic Federal Tax Paymen…INV0024271 07/13/2023 Social Security 32-22100-0000-1 2,287.76 Electronic Federal Tax Paymen…INV0024271 07/13/2023 Social Security 34-22100-0000-1 221.14 Electronic Federal Tax Paymen…INV0024276 07/13/2023 Medicare 01-22150-0000-1 770.78 Electronic Federal Tax Paymen…INV0024276 07/13/2023 Medicare 20-22150-0000-1 41.12 Electronic Federal Tax Paymen…INV0024276 07/13/2023 Medicare 30-22150-0000-1 520.96 Electronic Federal Tax Paymen…INV0024276 07/13/2023 Medicare 31-22150-0000-1 207.28 Electronic Federal Tax Paymen…INV0024276 07/13/2023 Medicare 32-22150-0000-1 534.90 Electronic Federal Tax Paymen…INV0024276 07/13/2023 Medicare 34-22150-0000-1 51.70 Electronic Federal Tax Paymen…INV0024304 07/13/2023 Federal Income Tax Withholdi… 01-22050-0000-1 5,353.51 Electronic Federal Tax Paymen…INV0024304 07/13/2023 Federal Income Tax Withholdi… 30-22050-0000-1 15.22 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 5 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Electronic Federal Tax Paymen…INV0024304 07/13/2023 Federal Income Tax Withholdi… 32-22050-0000-1 15.20 Electronic Federal Tax Paymen…INV0024305 07/13/2023 Social Security 01-22100-0000-1 8,491.16 Electronic Federal Tax Paymen…INV0024305 07/13/2023 Social Security 30-22100-0000-1 26.20 Electronic Federal Tax Paymen…INV0024305 07/13/2023 Social Security 32-22100-0000-1 26.22 Electronic Federal Tax Paymen…INV0024310 07/13/2023 Medicare 01-22150-0000-1 1,985.82 Electronic Federal Tax Paymen…INV0024310 07/13/2023 Medicare 30-22150-0000-1 6.12 Electronic Federal Tax Paymen…INV0024310 07/13/2023 Medicare 32-22150-0000-1 6.14 Electronic Federal Tax Paymen…INV0024311 07/13/2023 Federal Income Tax Withholdi… 30-22050-0000-1 1,073.82 Electronic Federal Tax Paymen…INV0024312 07/13/2023 Social Security 30-22100-0000-1 837.00 Electronic Federal Tax Paymen…INV0024315 07/13/2023 Medicare 30-22150-0000-1 195.76 Vendor EFTPS - Electronic Federal Tax Payment System Total: 33,979.58 Vendor: empowertrust - Empower Trust Company LLC
Empower Trust Company LLC INV0024243 07/13/2023 457 Employee Contribution 01-20800-0000-1 45.00 Empower Trust Company LLC INV0024243 07/13/2023 457 Employee Contribution 30-20800-0000-1 135.00 Empower Trust Company LLC INV0024243 07/13/2023 457 Employee Contribution 31-20800-0000-1 135.00 Empower Trust Company LLC INV0024243 07/13/2023 457 Employee Contribution 32-20800-0000-1 135.00 Vendor empowertrust - Empower Trust Company LLC Total: 450.00 Vendor: Frontier - Frontier California Inc.

Frontier California Inc. 530-198-2194-071304-5 07/05/2023 Frontier June 2023 53019821… 32-510-57800-0000-1 43.04 Frontier California Inc. 66179234370317155 07/06/2023 Frontier June2023 661792343… 01-185-57800-0000-1 95.75 Frontier California Inc. INV66179233910702095 07/11/2023 Frontier July 2023 661792339… 30-500-57800-0000-1 215.46 Vendor Frontier - Frontier California Inc. Total: 354.25 Vendor: gotocom - GoTo Communications Inc
GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-105-57800-0000-1 8.74 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-110-57800-0000-1 27.32 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-115-57800-0000-1 30.60 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-140-57800-0000-1 30.60 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-150-57800-0000-1 262.30 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-155-57800-0000-1 8.74 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-160-57800-0000-1 8.74 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-165-57800-0000-1 24.70 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-175-57800-0000-1 30.60 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 01-180-57800-0000-1 36.50 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 20-200-57800-0000-1 0.66 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 30-500-57800-0000-1 155.86 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 31-505-57800-0000-1 64.48 GoTo Communications Inc IN7102090023 07/06/2023 IN7102090023 GoTo Monthly… 32-510-57800-0000-1 140.77 Vendor gotocom - GoTo Communications Inc Total: 830.61
Vendor: Granite Auto Parts I - Granite Auto Parts Inc
Granite Auto Parts Inc INV 832551 07/11/2023 INV 832551 Fuel Cap for WW … 32-510-56600-0000-1 24.89 Vendor Granite Auto Parts I - Granite Auto Parts Inc Total: 24.89 Vendor: Gregs Petroleum - Gregs Petroleum
Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-105-54000-0000-1 2.18 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-110-54000-0000-1 14.60 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-115-54000-0000-1 13.44 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-140-54000-0000-1 2.18 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-150-54000-0000-1 838.74 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-155-54000-0000-1 33.54 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-160-54000-0000-1 11.14 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-175-54000-0000-1 1.15 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 01-180-54000-0000-1 134.18 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 20-200-54000-0000-1 44.68 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 30-500-54000-0000-1 83.86 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 32-510-54000-0000-1 33.54 Gregs Petroleum INV 392216 07/06/2023 Fuel INV 392216 06/27/23 34-520-54000-0000-1 67.09 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-105-54000-0000-1 2.87 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-110-54000-0000-1 19.26 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-115-54000-0000-1 17.74 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-140-54000-0000-1 2.87 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 6 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-150-54000-0000-1 1,107.07 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-155-54000-0000-1 44.28 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-160-54000-0000-1 14.70 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-175-54000-0000-1 1.52 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 01-180-54000-0000-1 177.10 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 20-200-54000-0000-1 58.98 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 30-500-54000-0000-1 110.69 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 32-510-54000-0000-1 44.28 Gregs Petroleum INV 393338 07/06/2023 Fuel 06/30/23 INV 393338 34-520-54000-0000-1 88.55 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-105-54000-0000-1 1.76 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-110-54000-0000-1 11.80 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-115-54000-0000-1 10.87 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-140-54000-0000-1 1.76 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-150-54000-0000-1 678.12 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-155-54000-0000-1 27.12 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-160-54000-0000-1 9.01 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-175-54000-0000-1 0.93 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 01-180-54000-0000-1 108.48 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 20-200-54000-0000-1 36.13 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 30-500-54000-0000-1 67.80 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 32-510-54000-0000-1 27.12 Gregs Petroleum INV 393604 07/06/2023 Fuel INV 393604 07/04/23 34-520-54000-0000-1 54.24 Vendor Gregs Petroleum - Gregs Petroleum Total: 4,005.37 Vendor: Haaker Equipment Co. - Haaker Equipment Co.

Haaker Equipment Co. INV W5A06H 07/06/2023 INV W5A06H OIL,CABIN FIL.OI… 30-500-56410-0000-1 2,705.14 Haaker Equipment Co. INV INT08890 07/11/2023 INV INT08890 Interest Charge… 30-500-56410-0000-1 57.58 Vendor Haaker Equipment Co. - Haaker Equipment Co. Total: 2,762.72 Vendor: Hodges - Hodges Law Group
Hodges Law Group INV 00523 07/06/2023 INV 00523 Legal Services June… 01-130-56100-0000-1 11,281.50 Vendor Hodges - Hodges Law Group Total: 11,281.50
Vendor: Home Depot - Home Depot
Home Depot INV0024229 07/11/2023 Auth Code 027155/4511059 S… 01-180-57400-0000-1 82.04 Home Depot INV0024229 07/11/2023 Auth Code 027155/4511059 S… 20-200-57400-0000-1 40.00 Home Depot INV0024230 07/11/2023 Auth Code 013954/8541269 P…01-190-57400-0000-1 113.46 Home Depot INV0024231 07/11/2023 Auth Code 030028/15611301… 01-190-57400-0000-1 37.06 Home Depot INV0024232 07/11/2023 Auth Code 019001/2533767 T… 01-180-57400-0000-1 33.48 Home Depot INV0024233 07/11/2023 Auth Code 014343/7515386 B…01-190-57400-0000-1 47.50 Home Depot INV0024234 07/11/2023 Auth Code 013055/8063675 P…32-510-57400-0000-1 174.48 Home Depot INV0024235 07/11/2023 Auth Code 019666/2510271 … 01-180-57400-0000-1 40.96 Home Depot INV0024236 07/11/2023 Auth Code 003370/8522321 L… 32-510-57400-0000-1 56.05 Vendor Home Depot - Home Depot Total: 625.03
Vendor: Triple A Contruction - Ignacio Alejandro Ayon
Ignacio Alejandro Ayon INV 1598 (Second Installment …07/06/2023 Triple A Construct. Kitchen R… 25-000-52910-0000-1 3,700.00 Ignacio Alejandro Ayon INV 1599 (Second Installment …07/06/2023 Triple A Construct. Kitchen R… 25-000-52910-0000-1 6,030.00 Vendor Triple A Contruction - Ignacio Alejandro Ayon Total: 9,730.00 Vendor: Irrigation Concepts - Irrigation Concepts
Irrigation Concepts INV 47704 07/11/2023 INV 47704 Pull and Clean San … 30-500-57400-0000-1 292.50 Irrigation Concepts INV 47706 07/11/2023 INV 47706 Pull Pumps Garzoli… 30-500-57400-0000-1 585.00 Irrigation Concepts INV 47715 07/11/2023 INV 47715 Pull and Clean Pum…30-500-57400-0000-1 195.00 Vendor Irrigation Concepts - Irrigation Concepts Total: 1,072.50 Vendor: Jasmine Martinez - Jasmine Martinez
Jasmine Martinez INV0024226 07/06/2023 Martinez, Jasmine Veteran Hal…01-24000-0000-1 350.00 Vendor Jasmine Martinez - Jasmine Martinez Total: 350.00 Vendor: JESSICA ORTEGA - JESSICA ORTEGA
JESSICA ORTEGA INV0024223 07/06/2023 Ortega, Jessica Veteran Hall R… 01-24000-0000-1 350.00 Vendor JESSICA ORTEGA - JESSICA ORTEGA Total: 350.00
Vendor: Jim Burke - Jim Burke
Jim Burke INV 721632 07/06/2023 INV 721632 Repair and Maint… 01-150-56600-0000-1 83.99 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 7 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Jim Burke INV 721722 07/06/2023 INV 721722 Repair and Maint… 01-150-56600-0000-1 253.01 Jim Burke INV 722201 07/06/2023 INV 722201 Repair and Maint… 01-150-56600-0000-1 83.99 Jim Burke INV 724328 07/06/2023 INV 724328 Repair and Maint… 01-150-56600-0000-1 117.75 Jim Burke INV 729391 07/06/2023 INV 729391 Repair and Maint… 01-150-56600-0000-1 3,002.51 Jim Burke INV 729714 07/06/2023 INV 729714 Repair and Maint…01-150-56600-0000-1 124.91 Jim Burke INV 729750 07/06/2023 INV 729750 Repair and Maint…01-150-56600-0000-1 83.99 Jim Burke INV 729888 07/06/2023 INV 729888 Check Engine Light 01-150-56600-0000-1 137.91 Jim Burke INV 730465 07/06/2023 INV 730465 Repair and Maint…01-150-56600-0000-1 83.99 Jim Burke INV 721717 07/11/2023 INV 721717 Repair and Maint…01-150-56600-0000-1 248.99 Vendor Jim Burke - Jim Burke Total: 4,221.04
Vendor: John Hancock - John Hancock
John Hancock INV0024240 07/13/2023 401K - Employer 01-20800-0000-1 1,409.58 John Hancock INV0024240 07/13/2023 401K - Employer 30-20800-0000-1 1,408.34 John Hancock INV0024240 07/13/2023 401K - Employer 31-20800-0000-1 581.07 John Hancock INV0024240 07/13/2023 401K - Employer 32-20800-0000-1 1,355.19 John Hancock INV0024241 07/13/2023 401K - Employee 01-20800-0000-1 242.60 John Hancock INV0024241 07/13/2023 401K - Employee 20-20800-0000-1 85.06 John Hancock INV0024241 07/13/2023 401K - Employee 30-20800-0000-1 315.79 John Hancock INV0024241 07/13/2023 401K - Employee 31-20800-0000-1 216.18 John Hancock INV0024241 07/13/2023 401K - Employee 32-20800-0000-1 441.50 John Hancock INV0024242 07/13/2023 401K - Employer 20-20800-0000-1 141.76 John Hancock INV0024250 07/13/2023 401K Loan 1 32-20800-0000-1 32.25 John Hancock INV0024251 07/13/2023 401K Loan 1 01-20800-0000-1 160.26 John Hancock INV0024252 07/13/2023 401K Loan 2 01-20800-0000-1 182.65 John Hancock INV0024253 07/13/2023 401K Loan 3 01-20800-0000-1 35.74 John Hancock INV0024253 07/13/2023 401K Loan 3 30-20800-0000-1 26.80 John Hancock INV0024253 07/13/2023 401K Loan 3 32-20800-0000-1 26.79 John Hancock INV0024254 07/13/2023 401K Loan 3 32-20800-0000-1 25.60 John Hancock INV0024255 07/13/2023 401K Loan 4 34-20800-0000-1 75.00 John Hancock INV0024256 07/13/2023 401K Loan 4 01-20800-0000-1 120.02 John Hancock INV0024256 07/13/2023 401K Loan 4 31-20800-0000-1 15.01 John Hancock INV0024256 07/13/2023 401K Loan 4 34-20800-0000-1 14.97 John Hancock INV0024257 07/13/2023 401K Loan 4 01-20800-0000-1 42.12 John Hancock INV0024257 07/13/2023 401K Loan 4 31-20800-0000-1 5.27 John Hancock INV0024257 07/13/2023 401K Loan 4 34-20800-0000-1 5.26 John Hancock INV0024258 07/13/2023 401k Contribution 01-20800-0000-1 1,246.48 John Hancock INV0024259 07/13/2023 401k Contribution 32-20800-0000-1 151.73 John Hancock INV0024260 07/13/2023 401k Contribution 30-20800-0000-1 89.82 John Hancock INV0024261 07/13/2023 401k Contribution 01-20800-0000-1 230.08 John Hancock INV0024261 07/13/2023 401k Contribution 31-20800-0000-1 28.76 John Hancock INV0024261 07/13/2023 401k Contribution 34-20800-0000-1 28.76 John Hancock INV0024262 07/13/2023 401k Contribution 34-20800-0000-1 148.96 John Hancock INV0024263 07/13/2023 401k Contribution 01-20800-0000-1 356.90 John Hancock INV0024264 07/13/2023 401k Contribution 01-20800-0000-1 446.16 John Hancock INV0024264 07/13/2023 401k Contribution 30-20800-0000-1 178.47 John Hancock INV0024264 07/13/2023 401k Contribution 31-20800-0000-1 89.23 John Hancock INV0024264 07/13/2023 401k Contribution 32-20800-0000-1 178.45 John Hancock INV0024277 07/13/2023 401K - Employer 01-20800-0000-1 4,136.38 John Hancock INV0024277 07/13/2023 401K - Employer 30-20800-0000-1 21.14 John Hancock INV0024277 07/13/2023 401K - Employer 32-20800-0000-1 21.11 John Hancock INV0024278 07/13/2023 401K - Employee 01-20800-0000-1 3,134.80 John Hancock INV0024285 07/13/2023 401K Loan 1 01-20800-0000-1 89.29 John Hancock INV0024286 07/13/2023 401K Loan 1 01-20800-0000-1 138.52 John Hancock INV0024287 07/13/2023 401K Loan 1 01-20800-0000-1 117.75 John Hancock INV0024288 07/13/2023 401k Contribution 01-20800-0000-1 306.37 John Hancock INV0024289 07/13/2023 401k Contribution 01-20800-0000-1 332.91 John Hancock INV0024290 07/13/2023 401k Contribution 01-20800-0000-1 184.70 John Hancock INV0024291 07/13/2023 401k Contribution 01-20800-0000-1 297.28 John Hancock INV0024292 07/13/2023 401k Contribution 01-20800-0000-1 240.72 John Hancock INV0024293 07/13/2023 401k Contribution 01-20800-0000-1 267.96 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 8 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount John Hancock INV0024294 07/13/2023 401k Contribution 01-20800-0000-1 547.28 John Hancock INV0024295 07/13/2023 401k Contribution 01-20800-0000-1 339.74 John Hancock INV0024296 07/13/2023 401k Contribution 01-20800-0000-1 256.48 John Hancock INV0024297 07/13/2023 401K Contribition 01-20800-0000-1 400.00 John Hancock INV0024298 07/13/2023 401K Contribition 01-20800-0000-1 400.00 John Hancock INV0024299 07/13/2023 401K Contribition 01-20800-0000-1 400.00 John Hancock INV0024300 07/13/2023 401K Contribition 01-20800-0000-1 400.00 John Hancock INV0024301 07/13/2023 401K Contribition 01-20800-0000-1 400.00 Vendor John Hancock - John Hancock Total: 22,571.04
Vendor: Jorge's Smog & Repai - Jorge's Smog & Repai
Jorge's Smog & Repai INV 018404 07/06/2023 INV 018404 A/C Service 01-150-56600-0000-1 213.08 Jorge's Smog & Repai INV 018425 07/06/2023 INV 018425 Replace Transmiss…01-150-56600-0000-1 835.02 Jorge's Smog & Repai INV 018446 07/06/2023 INV 018446 Oil Change 01-150-56600-0000-1 80.00 Jorge's Smog & Repai INV 017276 07/11/2023 INV 017276 Oil Change and Le…01-180-56600-0000-1 379.57 Vendor Jorge's Smog & Repai - Jorge's Smog & Repai Total: 1,507.67 Vendor: J's Automotive - J's Automotive
J's Automotive INV 13115 07/06/2023 INV 13115 Vehicle Maintenan… 01-150-56600-0000-1 182.00 J's Automotive INV 13116 07/06/2023 INV 13116 Tow 01-150-56600-0000-1 182.00 J's Automotive INV 13139 07/06/2023 INV 13139 Tow 01-150-56600-0000-1 325.00 J's Automotive INV 9661 07/06/2023 INV 9661 Tires and Brakes 01-150-56600-0000-1 1,020.19 J's Automotive INV 13145 07/11/2023 INV 13145 Repair 01-150-56600-0000-1 182.00 Vendor J's Automotive - J's Automotive Total: 1,891.19
Vendor: K.C. Waste - K.C. Waste
K.C. Waste INV0024224 07/06/2023 June 2023 Gate Fees 31-505-52800-0000-1 5,109.65 Vendor K.C. Waste - K.C. Waste Total: 5,109.65
Vendor: KOEFRAN - Koefran Industries, Inc.

Koefran Industries, Inc. INV 0000553544 07/11/2023 INV 0000553544 Monthly Ani… 01-155-51100-0000-1 220.50 Vendor KOEFRAN - Koefran Industries, Inc. Total: 220.50 Vendor: Leaf - LEAF Capital Funding LLC
LEAF Capital Funding LLC INV 14970366 07/06/2023 INV 14970366 Xerox C8155 01-130-52200-0000-1 400.53 Vendor Leaf - LEAF Capital Funding LLC Total: 400.53
Vendor: McFarland Tire - McFarland Tire
McFarland Tire INV 30698 07/11/2023 INV 30698 New tires on Kubot…01-180-56430-0000-1 165.00 McFarland Tire INV 30698 07/11/2023 INV 30698 New tires on Kubot…32-510-56410-0000-1 165.00 Vendor McFarland Tire - McFarland Tire Total: 330.00
Vendor: Nutrien Ag Solutions - Nutrien Ag Solutions, Inc.

Nutrien Ag Solutions, Inc. INV 51665311 07/06/2023 ROUND UP FOR WATER DIVIS… 32-510-57400-0000-1 1,234.05 Nutrien Ag Solutions, Inc. INV 51689414 07/06/2023 INV 51689414 GLUFOSINATE-… 30-500-56410-0000-1 692.80 Vendor Nutrien Ag Solutions - Nutrien Ag Solutions, Inc. Total: 1,926.85 Vendor: Office Depot - Office Depot
Office Depot INV 319732986 07/06/2023 Order 319732986 Office Suppl…01-140-57200-0000-1 52.63 Office Depot INV 319732986 07/06/2023 Order 319732986 Office Suppl…01-160-57200-0000-1 52.89 Office Depot INV 319732986 07/06/2023 Order 319732986 Office Suppl…01-175-57200-0000-1 50.00 Office Depot INV 301877007001 07/11/2023 INV 301877007001 Stamp, Pa… 01-180-57200-0000-1 27.24 Office Depot INV 301877007001 07/11/2023 INV 301877007001 Stamp, Pa… 32-510-57200-0000-1 27.24 Office Depot INV 301877007001 07/11/2023 INV 301877007001 Stamp, Pa… 34-520-57200-0000-1 27.24 Office Depot INV 318956774001 07/11/2023 INV 318956774001 Finance Of…30-500-57200-0000-1 21.26 Office Depot INV 318956774001 07/11/2023 INV 318956774001 Finance Of…31-505-57200-0000-1 21.26 Office Depot INV 318956774001 07/11/2023 INV 318956774001 Finance Of…32-510-57200-0000-1 28.33 Vendor Office Depot - Office Depot Total: 308.09
Vendor: Pace Analytical Serv - Pace Analytical Services, LLC Pace Analytical Services, LLC INV B478009 07/11/2023 INV B478009 Effluent/Influent…32-510-58200-0000-1 207.30 Pace Analytical Services, LLC INV B478520 07/11/2023 INV B478520 Bacteriological-… 32-510-58200-0000-1 142.20 Pace Analytical Services, LLC INV B478699 07/11/2023 INV B478699 Bacteriological-… 32-510-58200-0000-1 259.40 Vendor Pace Analytical Serv - Pace Analytical Services, LLC Total: 608.90 Vendor: R&F Disposal - R&F Disposal
R&F Disposal INV 345710 07/05/2023 R&F City Hall INV 345710 Roll… 01-180-58050-0000-1 396.50 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 9 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount R&F Disposal INV 630232 07/05/2023 R&F June 2023 INV 630232 01-185-58050-0000-1 93.72 R&F Disposal INV 630233 07/05/2023 R&F June 2023 INV 630233 S… 30-500-58050-0000-1 143.56 R&F Disposal INV 630234 07/05/2023 R&F June 2023 INV 630234 Bl… 01-180-58050-0000-1 143.56 R&F Disposal INV 630235 07/05/2023 R&F June 2023 INV 630235 3y… 01-155-58050-0000-1 143.56 R&F Disposal INV 630236 07/05/2023 R&F June 2023 INV 630236 Pol…01-150-52200-0000-1 107.32 Vendor R&F Disposal - R&F Disposal Total: 1,028.22
Vendor: SJVA - San Joaquin Valley Air Pollution Control District San Joaquin Valley Air Pollutio…INV S171554 07/11/2023 INV S171554 - 23/24 Annual P…32-510-53250-0000-1 900.00 Vendor SJVA - San Joaquin Valley Air Pollution Control District Total: 900.00 Vendor: SECURE SYSTEMS - SECURE SYSTEMS
SECURE SYSTEMS INV P768846 07/06/2023 INV P768846 Seatrain Police … 01-150-52200-0000-1 2,650.00 SECURE SYSTEMS INV P768846 07/06/2023 INV P768846 Animal Shelter … 01-155-52200-0000-1 1,200.00 SECURE SYSTEMS INV P768846 07/06/2023 INV P768846 City Hall COM 1 01-190-52200-0000-1 1,850.00 SECURE SYSTEMS INV P768846 07/06/2023 INV P768846 Waste Water C… 30-500-52200-0000-1 1,400.00 SECURE SYSTEMS INV P768846 07/06/2023 INV P768846 Storage Tank C… 32-510-52200-0000-1 1,200.00 SECURE SYSTEMS INV P768846 07/06/2023 INV P768846 Well 6 COM 3 32-510-52200-0000-1 1,000.00 SECURE SYSTEMS INV R258499 07/11/2023 INV R258499 Service monitori… 01-150-52200-0000-1 64.00 SECURE SYSTEMS INV R258499 07/11/2023 INV R258499 Service monitori… 01-185-52200-0000-1 69.00 SECURE SYSTEMS INV R258499 07/11/2023 INV R258499 Service monitori… 01-190-52200-0000-1 31.00 SECURE SYSTEMS INV R258499 07/11/2023 INV R258499 Service monitori… 30-500-52200-0000-1 52.00 SECURE SYSTEMS INV R258499 07/11/2023 INV R258499 Service monitori… 32-510-52200-0000-1 156.00 Vendor SECURE SYSTEMS - SECURE SYSTEMS Total: 9,672.00
Vendor: SPD - SPD
SPD INV 19278 07/06/2023 INV 19278 Water Report News…32-510-55800-0000-1 3,085.13 Vendor SPD - SPD Total: 3,085.13
Vendor: Telstar Instruments - Telstar Instruments
Telstar Instruments INV 117055 07/06/2023 INV 117055 Hours,Tools,Fuel … 30-500-56410-0000-1 6,066.00 Vendor Telstar Instruments - Telstar Instruments Total: 6,066.00 Vendor: THE BANCORP - THE BANCORP BANK
THE BANCORP BANK INV 601845 07/06/2023 INV 601845 July Lease Rental … 01-150-58900-0000-1 7,227.09 Vendor THE BANCORP - THE BANCORP BANK Total: 7,227.09
Vendor: Torpedo - Torpedo Pest Control
Torpedo Pest Control INV 1385 07/11/2023 INV 1385 General Pest Service…01-185-52200-0000-1 237.50 Torpedo Pest Control INV 1385 07/11/2023 INV 1385 General Pest Service…01-190-52200-0000-1 237.50 Vendor Torpedo - Torpedo Pest Control Total: 475.00
Vendor: United States Postal - United States Postal
United States Postal INV0024238 07/12/2023 Business License Renewals 23… 01-111-55600-0000-1 560.00 United States Postal INV0024239 07/12/2023 YEARLY CCR REPORT POSTAGE…32-510-55600-0000-1 2,100.00 Vendor United States Postal - United States Postal Total: 2,660.00 Vendor: UNWIREDBROADBAND - unWired Broadband LLC
unWired Broadband LLC INV 01703163 07/11/2023 INV 01703163 Internet Month…01-155-57800-0000-1 144.99 unWired Broadband LLC INV 01703163 07/11/2023 INV 01703163 Internet Month…30-500-57800-0000-1 145.00 Vendor UNWIREDBROADBAND - unWired Broadband LLC Total: 289.99 Vendor: Vernon C. Sorenson - Vernon C. Sorenson
Vernon C. Sorenson INV 00520280-00 07/06/2023 INV 00520280-00 P. Saldana P…01-140-56000-0000-1 250.00 Vernon C. Sorenson INV 00520471-00 07/06/2023 INV 00520471-00 C. Perez Phy…01-180-56000-0000-1 215.00 Vernon C. Sorenson INV 00521730-00 07/06/2023 INV 00521730-00 M. Robles P… 32-510-56000-0000-1 215.00 Vendor Vernon C. Sorenson - Vernon C. Sorenson Total: 680.00 Vendor: Visual Edge - Visual Edge IT, Inc.

Visual Edge IT, Inc. INV 24AR911559 07/06/2023 INV 24AR911559 Contract Cha…01-130-54800-0000-1 1,172.56 Vendor Visual Edge - Visual Edge IT, Inc. Total: 1,172.56 Vendor: Rain for Rent - Western Oilfields Supply Company Western Oilfields Supply Com… INV 189466 07/11/2023 INV 189466 Bush Red, Valve, N…32-510-57400-0000-1 172.83 Vendor Rain for Rent - Western Oilfields Supply Company Total: 172.83 Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 10 of 14
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: WILLDAN - WILLDAN
WILLDAN INV 010-53896 07/11/2023 INV 010-53896 Development … 01-140-56000-0000-1 1,897.00 Vendor WILLDAN - WILLDAN Total: 1,897.00
Grand Total: 218,625.23
Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 11 of 14
Report Summary
Fund Summary
Fund Payment Amount
01 - GENERAL FUND 136,868.97
20 - LIGHTING & LANDSCAPING-DISTRICT 1 5,135.49
25 - CAPITAL IMPROVEMENTS PROJECTS 9,730.00
30 - SEWER 30,702.29
31 - REFUSE/RECYCLING 10,289.88
32 - WATER 23,902.47
34 - PUBLIC TRANSPORTATION 1,996.13
Grand Total: 218,625.23
Account Summary
Account Number Account Name Payment Amount
01-105-54000-0000-1 Fuel 6.81
01-105-57800-0000-1 Telephone & Communic… 8.74
01-110-54000-0000-1 Fuel 45.66
01-110-57800-0000-1 Telephone & Communic… 27.32
01-111-52200-0000-1 Contract Services 350.00
01-111-55600-0000-1 Postage 560.00
01-115-54000-0000-1 Fuel 42.05
01-115-57200-0000-1 Supplies - Office 30.05
01-115-57800-0000-1 Telephone & Communic… 30.60
01-130-52200-0000-1 Contract Services 400.53
01-130-54800-0000-1 Maintenance Agreements 1,172.56
01-130-56000-0000-1 Professional Services - O… 13,357.75 01-130-56050-0000-1 Accounting/Auditing Ser… 2,659.80
01-130-56100-0000-1 Legal Services 11,281.50
01-140-52200-0000-1 Contract Services 2,943.50
01-140-54000-0000-1 Fuel 6.81
01-140-55200-0000-1 Miscellaneous 125.27
01-140-56000-0000-1 Professional Services - O… 7,147.00 01-140-57200-0000-1 Supplies - Office 52.63
01-140-57800-0000-1 Telephone & Communic… 30.60
01-150-51800-0000-1 Clothing Allowance 105.62
01-150-52010-0000-1 Conference/Meeting/Tr… 737.50
01-150-52200-0000-1 Contract Services 2,904.12
01-150-53200-0000-1 Dues & Subscriptions 415.00
01-150-54000-0000-1 Fuel 3,023.93
01-150-56600-0000-1 Repairs & Maintenance -… 20,384.81
01-150-57800-0000-1 Telephone & Communic… 262.30
01-150-58900-0000-1 Debt Principal 7,227.09
01-155-51100-0000-1 Animal Disposal 220.50
01-155-52200-0000-1 Contract Services 1,200.00
01-155-54000-0000-1 Fuel 104.94
01-155-57800-0000-1 Telephone & Communic… 153.73
01-155-58050-0000-1 Utilities Other 143.56
01-160-54000-0000-1 Fuel 34.85
01-160-57200-0000-1 Supplies - Office 52.89
01-160-57800-0000-1 Telephone & Communic… 8.74
01-165-54000-0000-1 Fuel 158.06
01-165-56600-0000-1 Repairs & Maintenance -… 678.57
01-165-57800-0000-1 Telephone & Communic… 24.70
01-175-54000-0000-1 Fuel 3.60
01-175-57200-0000-1 Supplies - Office 50.00
01-175-57800-0000-1 Telephone & Communic… 30.60
01-180-51800-0000-1 Clothing Allowance 68.12
01-180-54000-0000-1 Fuel 419.76
01-180-56000-0000-1 Professional Services - O… 279.00
01-180-56430-0000-1 Repairs & Maintenance -… 165.00
Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 12 of 14
Account Summary
Account Number Account Name Payment Amount
01-180-56600-0000-1 Repairs/Maintenance - … 379.57
01-180-57200-0000-1 Supplies - Office 27.24
01-180-57400-0000-1 Supplies - Operating 156.48
01-180-57800-0000-1 Telephone & Communic… 36.50
01-180-58050-0000-1 Utilities Other 839.34
01-185-52200-0000-1 Contract Services 306.50
01-185-57800-0000-1 Telephone & Communic… 95.75
01-185-58050-0000-1 Utilities Other 93.72
01-190-52200-0000-1 Contract Services 2,118.50
01-190-56400-0000-1 Repairs & Maint - Build &… 876.00
01-190-57400-0000-1 Supplies - Operating 198.02
01-20800-0000-1 Pension Payable 16,907.77
01-22050-0000-1 Federal Withholding Pay… 7,404.18
01-22100-0000-1 FICA Payable 11,786.44
01-22150-0000-1 Medicare Payable 2,756.60
01-22200-0000-1 State Withholding Payab… 3,682.99
01-22250-0000-1 SUTA Payable 55.26
01-22275-0000-1 ETT Payable 1.37
01-22350-0000-1 Garnishments 369.23
01-22600-0000-1 Health FSA 60.57
01-22700-0000-1 Disablity LTD 252.92
01-22800-0000-1 Accident 27.64
01-22900-0000-1 Life 159.31
01-22950-0000-1 Cancer-American Fidelity 14.41
01-24000-0000-1 Deposits 1,050.00
01-310-52200-0000-1 Contract Services 8,076.49
20-200-51800-0000-1 Clothing Allowance 13.44
20-200-52200-0000-1 Contract Services 4,485.12
20-200-54000-0000-1 Fuel 139.79
20-200-57400-0000-1 Supplies - Operating 40.00
20-200-57800-0000-1 Telephone & Communic… 0.66
20-20800-0000-1 Pension Payable 226.82
20-22100-0000-1 FICA Payable 175.78
20-22150-0000-1 Medicare Payable 41.12
20-22200-0000-1 State Withholding Payab… 12.76
25-000-52910-0000-1 Buildings & Improvemen… 9,730.00
30-20800-0000-1 Pension Payable 2,175.36
30-22050-0000-1 Federal Withholding Pay… 2,459.78
30-22100-0000-1 FICA Payable 3,090.52
30-22150-0000-1 Medicare Payable 722.84
30-22200-0000-1 State Withholding Payab… 1,138.93
30-22250-0000-1 SUTA Payable 10.10
30-22275-0000-1 ETT Payable 0.25
30-22600-0000-1 Health FSA 83.07
30-22700-0000-1 Disablity LTD 87.62
30-22800-0000-1 Accident 27.45
30-22900-0000-1 Life 91.23
30-22950-0000-1 Cancer- American Fidelity 24.66
30-500-51800-0000-1 Clothing Allowance 50.41
30-500-52200-0000-1 Contract Services 2,627.37
30-500-54000-0000-1 Fuel 691.15
30-500-55600-0000-1 Postage 592.89
30-500-56050-0000-1 Accounting/Auditing Ser… 2,659.80
30-500-56410-0000-1 Repairs & Maintenance … 12,175.08
30-500-57200-0000-1 Supplies - Office 111.40
30-500-57400-0000-1 Supplies - Operating 1,222.50
30-500-57800-0000-1 Telephone & Communic… 516.32
30-500-58050-0000-1 Utilities Other 143.56
Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 13 of 14
Account Summary
Account Number Account Name Payment Amount
31-20800-0000-1 Pension Payable 1,070.52
31-22050-0000-1 Federal Withholding Pay… 438.98
31-22100-0000-1 FICA Payable 886.36
31-22150-0000-1 Medicare Payable 207.28
31-22200-0000-1 State Withholding Payab… 270.10
31-22250-0000-1 SUTA Payable 6.74
31-22275-0000-1 ETT Payable 0.17
31-22600-0000-1 Health FSA 50.19
31-22700-0000-1 Disablity LTD 9.89
31-22900-0000-1 Life 10.63
31-22950-0000-1 Cancer-American Fidelity 2.62
31-505-52200-0000-1 Contract Services 230.37
31-505-52800-0000-1 County Waste Managem… 5,109.65
31-505-55600-0000-1 Postage 592.89
31-505-56050-0000-1 Accounting/Auditing Ser… 1,227.60
31-505-57200-0000-1 Supplies - Office 111.41
31-505-57800-0000-1 Telephone & Communic… 64.48
32-20800-0000-1 Pension Payable 2,367.62
32-22050-0000-1 Federal Withholding Pay… 764.09
32-22100-0000-1 FICA Payable 2,313.98
32-22150-0000-1 Medicare Payable 541.04
32-22200-0000-1 State Withholding Payab… 496.04
32-22250-0000-1 SUTA Payable 67.92
32-22275-0000-1 ETT Payable 1.71
32-22600-0000-1 Health FSA 108.08
32-22700-0000-1 Disablity LTD 44.80
32-22900-0000-1 Life 24.63
32-22950-0000-1 Cancer-American Fidelity 2.59
32-510-51800-0000-1 Clothing Allowance 16.14
32-510-52200-0000-1 Contract Services 2,587.07
32-510-53250-0000-1 Permits & Certificates 900.00
32-510-54000-0000-1 Fuel 240.15
32-510-55600-0000-1 Postage 2,694.66
32-510-55800-0000-1 Printing & Legal Notices 3,085.13
32-510-56000-0000-1 Professional Services - O… 215.00
32-510-56050-0000-1 Accounting/Auditing Ser… 2,762.10
32-510-56410-0000-1 Repairs & Maintenance- … 165.00
32-510-56600-0000-1 Repairs & Maintenance -… 24.89
32-510-57200-0000-1 Supplies - Office 145.72
32-510-57400-0000-1 Supplies - Operating 3,541.40
32-510-57800-0000-1 Telephone & Communic… 183.81
32-510-58200-0000-1 Water/Soil/Other Analys… 608.90
34-20800-0000-1 Pension Payable 272.95
34-22050-0000-1 Federal Withholding Pay… 117.75
34-22100-0000-1 FICA Payable 221.14
34-22150-0000-1 Medicare Payable 51.70
34-22200-0000-1 State Withholding Payab… 45.84
34-22700-0000-1 Disablity LTD 30.76
34-22800-0000-1 Accident 15.41
34-22900-0000-1 Life 57.99
34-22950-0000-1 Cancer-American Fidelity 24.77
34-520-54000-0000-1 Fuel 209.88
34-520-56050-0000-1 Accounting/Auditing Ser… 920.70
34-520-57200-0000-1 Supplies - Office 27.24
Grand Total: 218,625.23
Expense Approval Report Payment Dates: 7/5/2023 - 7/18/2023 7/21/2023 3:55:47 PM Page 14 of 14
Project Account Summary
Project Account Key Payment Amount
**None** 218,625.23
Grand Total: 218,625.23

REGULAR CITY COUNCIL MINUTES

IN PERSON MEETING
June 22, 2023

MCFARLAND CITY COUNCIL

MCFARLAND SUCCESSOR AGENCY

MCFARLAND PUBLIC FINANCE AUTHORITY

MCFARLAND IMPROVEMENT AUTHORITY

MCFARLAND PARKING AUTHORITY

CALL TO ORDER
Mayor S. Ayon called the meeting to order at 6:00 p.m.

ROLL CALL
Councilmembers Present: Mayor S. Ayon, Vice Mayor Cano, Councilmember A. Ayon, Councilmember Pérez.

Councilmembers Absent: Councilmember Gonzalez

OFFICIALS PRESENT
City Manager Williams, Chief of Police Knox, City Attorney Hodges, Community Development Director Paul Saldana, Finance Director Viramontes, Human Resources Director McCuan, City Clerk Alvarado Officials Absent: Interim Public Works Director Jacobs

INVOCATION
Pastor Henry Robledo

PLEDGE OF ALLEGIANCE
Mayor Ayon

PET OF THE WEEK
Is a feature that highlights a pet available for adoption from the McFarland Animal Shelter.

Chief of Police Knox presented the futured pet of the week to City Council Members and the Community. He informed that this pet was available for immediate adoption.

PRESENTATIONS, INTRODUCTIONS AND AWARDS

1. Proclamation Declaring June 26-30 National Boys & Girls Week- Presented to Fanny Gama, Area Program Director for the Boys and Girls Club of Kern County - Mayor Ayon presented a proclamation to the Boys and Girls Club Area Program Director, Fanny Gama.
- Claribel Gutierrez, Field Representative for Assembly Women Jasmeet Bains presented a certificate of recognition to the Boys and Girls Club.

2. Proclamation Proclaiming June 25th to be La Iglesia del Salvador Viviente Day - Presented to Henry Robledo and Tony Blanco of La Iglesia Del Salvador Viviente - Mayor Ayon presented a proclamation to La Iglesia del Salvador Viviente. - Claribel Gutierrez, Field Representative for Assembly Women Jasmeet Bains presented a certificate of recognition to La Iglesia del Salvador Viviente.

3. Illegal Fireworks- Kern County Fire Department, Chief Joe Appleton - Chief Joe Appleton informed the community of illegal firework prevention and enforcement.

PUBLIC COMMENTS

1. Emily Engelsguard- The CrisCom Company
-Regarding Subject: Grants

2. Gloria Herrera, 348 San Pedro Street McFarland

3. Maria Jacinto, 343 Mt. Arbor Street McFarland

DEPARTMENTAL REPORTS
None
CONSENT AGENDA: The Consent Agenda consists of items that in staff’s opinion are routine and noncontroversial. These items are approved in one motion unless a Council Member/ Board Member or Member from the Public requests to remove a particular item.

4. Approval of Expense Report in the Amount of $ 393,787.99 from May 31, 2023 to June 13, 2023.

5. Approval of May 25, 2023 Regular Meeting Minutes.

6. Approval of June 08, 2023 Regular Meeting Minutes.

Public Comments: None
Motion was made by: Councilmember A. Ayon to approve the entire consent agenda; 2nd by: Vice Mayor Cano.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

PUBLIC HEARINGS
None

ADMINISTRATIVE AGENDA

7. Report, Discuss, and Possibly Approve Resolution No. 2023- 0076, A RESOLUTION OF

THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING AND

ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2023-24.
o Staff report was presented by: Finance Director Viramontes o No Comments from the public were presented.
o Motion was made by: Cano 2nd by: A. Ayon to approve Resolution No. 2023-0076.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

8. Report, Discuss, and Possibly Approve Resolution NO. 2023-0077, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING THE CITY’S ANNUAL OPERATING BUDGET FOR THE FISCAL YEAR 2023-24 AND 2023-28 CAPITAL IMPROVEMENT PROGRAM.
o Budget Presentation by: Finance Director Viramontes
o No Comments from the public were presented.
o Motion was made by: Amador Ayon 2nd by: Pérez to approve Resolution No. 2023-0077.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

9. Report, Discuss, and Possibly Approve Resolution No. 2023-0079, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING THE COMPLETION OF

THE ZERO-EMISSION BUS INNOVATIVE CLEAN TRANSIT PLAN BY WILLDAN

ENERGY SOLUTIONS AND AUTHORIZING STAFF TO SUBMIT THE PLAN TO THE CALIFORNIA AIR RESOURCES BOARD.
o Brief Presentation: David Sneed, Project Manager, Willdan- via Zoom o Staff report presented by: Interim Public Works Director Jacobs o No comments from the public were presented.
o Motion was made by: Cano 2nd by: Pérez to approve resolution No. 2023-0079.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

10. Report, Discuss, and Possibly Approve Resolution No. 2023-0084 A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND AUTHORIZING THE PURCHASE OF A Kubota Rugged Terrain Utility Vehicle (RTV).
o Staff report presented by: Interim Public Works Director Jacobs o Public Comments: Maria Jacinto
o Motion was made by: A. Ayon 2nd by: Pérez to approve Resolution No. 2023-0084.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

11. Report, Discuss, and Possibly Approve Resolution No. 2023-0078, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND AUTHORIZING THE FILING OF AN

APPLICATION FOR REGIONAL SURFACE TRANSPORTATION PROGRAM (RSTP)

PROGRAM FUNDING AND COMMITTING THE NECESSARY LOCAL MATCH AND STATING THE ASSURANCE TO COMPLETE THE PROJECT.
o Staff report presented by: Interim Public Works Director Jacobs o Public Comment: Silvia Romano, Fe En El Valle Representative o Motion was made by: A. Ayon 2nd by: Pérez to approve resolution No. 2023-0078.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

12. Report, Discuss, and Possibly Approve Resolution No. 2023-0080, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-2024 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.
o Staff Report presented by: Interim Public Works Director Jacobs o Public Comments: Gloria Herrera
o Motion was made by: Cano 2nd by: A. Ayon to approve Resolution No. 2023-0080.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

13. Report, Discuss, and Possibly Approve Resolution No. 2023-0081, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING AN ASSISTANT PUBLIC

WORKS DIRECTOR, THE ATTACHED JOB DESCRIPTION, AND THE SALARY RANGE OF $74,784 - $ 96,648.
o Staff Report presented by: City Manager Williams
o No comments from the public were presented.
o Motion was made by: Cano 2nd by: Pérez to approve Resolution No. 2023-0081.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

14. Resolution No. 2023- 0075, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MCFARLAND AUTHORIZING THE ACCEPTANCE OF AND EXECUTING

AGREEMENTS TO RECEIVE FUNDING FROM THE CHP CANNABIS TAX FUND GRANT PROGRAM.
o Staff report was presented by: City Manger Williams
o No comments from the public were presented.
o Motion was made by: Cano 2nd by: A. Ayon to approve Resolution No. 2023-0075.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

15. Report, Discuss, and Possibly Approve Resolution No. 2023-0083, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING FUNDS FROM THE

CITYS COMMUNITY GRANTS PROGRAM TO THE MCFARLAND RECREATION FOUNDATION.
o Staff Report presented by: City Manager Williams
o No comments from the public were presented.
o Motion was made by: A. Ayon 2nd by: Cano to approve Resolution No. 2023-0083 ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

16. Report, Discuss, and Possibly Approve Resolution No. 2023-0082, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING FUNDS FROM THE CITYS GENERAL FUND TO LEASE A PRINTER.
o Staff report was presented by: City Manager Williams
o No comments from the public were presented.
o Motion was made by: A. Ayon 2nd by: Cano to approve Resolution No. 2023-0082.

ROLL CALL VOTE: 4/0
AYES: S. Ayon, R. Cano, A. Ayon, M. Pérez
NAYS: None
ABSTAIN: None
ABSENT: A. Gonzalez
Full consensus

REPORTS FROM CITY COUNCIL ON COMMITTEE/SPECIAL DISTRICT MEETINGS a. Kern Council of Governments (KCOG) Mayor Ayon- Meeting next week. b. Kern Economic Development Corp. (KEDC) Mayor Ayon
c. Kern Local Agency Formation Commission (LAFCO) Mayor Ayon d. Delano Mosquito Abatement District (DMAD) Vice Mayor Cano e. Poso Creek (IRWMP) Councilmember Gonzalez
f. San Joaquin Valley Air Pollution Control District (SJV) Councilmember Ayon g. Public Policy and Finance Committee- Mayor Ayon & Councilmember Gonzalez h. Public Safety Committee – Mayor Ayon & Vice Mayor Cano i. Quality of Life Committee – Councilmember A. Ayon & Councilmember Gonzalez j. Cannabis Committee – Mayor Ayon & Councilmember Pérez

COUNCIL STATEMENTS AND REPORTS
Maria T. Pérez
Amador Ayon
Ricardo Cano
Saul Ayon
Open session closed at 8:03 p.m.

CLOSED SESSION

1. Conference with Legal Counsel – Anticipated Litigation - Significant exposure to litigation pursuant to Government Code §54956.9(b): One Case
No reportable action.

ADJOURNMENT
The council went into closed session at 8:03 p.m.
__________________________
Francisca Alvarado, City Clerk

CITY OF MCFARLAND

STAFF REPORT
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Paul Saldana, Community Development Director
DATE: July 27, 2023
SUBJECT: Report, Discuss and Approve Ordinance No. 0006-2023 adding Chapter 8.22 and amending Chapter 10 and Chapter 18 of the City of McFarland Municipal Code relating to code compliance.

SUMMARY:

Staff is proposing several changes to the Municipal Code to facilitate property maintenance and streamline code compliance processes. The following summarizes the proposed modifications to the Chapter 8, 10 and 18 of the Municipal Code:

Chapter 8.22 Removal of Vegetative Growth and/or Refuse This is a new section added to the municipal code. The provisions add a process for the City to inspect and abate vegetative growth or refuse that creates a fire or health hazard.

The City would notify residents on an annual basis of the need to remove any weeds or vegetative growth or refuse and set a date for which properties should be maintained. Following that date, the City will identify properties that are not in compliance with the ordinance and hold a hearing declaring that the property be abated. If the property is not in compliance following the notification period, the property will be abated, and the cost of the abatement will be added to the property tax roll for the collection of the abatement costs.

Chapter 10.14.020 Parking Violations Penalties
The fines and penalties contained in the Municipal Code are either out of compliance with fines and penalties established by the State of California or for local fees and penalties, they have not been updated on a regular basis. The proposed changes remove the fees from the ordinance and provide that the fees be established by Resolution of the City Council.

Chapter 18.04.010 Code Enforcement Fees and Fines
Similar to the changes to the parking violations, the code enforcement fees and fines are being removed from the Municipal Code and will be adopted by City Council by resolution annually.

Chapter 18.08 Waiver Provisions
The fee waiver application form is proposed for removal from the Code as it is an administrative function and hence is better suited as an administrative application rather than codified in the Municipal Code. This would provide the opportunity for the City and the property owner to request additional information beyond what is provided for in the current ordinance and allow the City Council to consider that information when reviewing a waiver request.

Staff will transmit resolution establishing fee schedule at the next Council meeting so that the fees will continue uninterrupted.

FINANCIAL IMPACT:

None
RECOMMENDATION:

Staff recommends City Council introduce Ordinance No. 0006-2023 for first reading.

ATTACHMENTS:

1. Ordinance No. 0006-2023

2. Memo
1 ORDINANCE NO. 0006-2023

AN ORDINANCE OF THE CITY OF MCFARLAND ADDING
CHAPTER 8.22 AND AMENDING CHAPTERS 10.14.020,

18.04.010 AND 18.08 OF THE MCFARLAND MUNICIPAL

CODE RELATING TO CODE COMPLIANCE
Section 1. Recitals
WHEREAS, the City of McFarland (the “City”) has the authority under Article XI, Section 7 of the California Constitution, to enact regulations for the public peace, morals, and welfare of the City; and
WHEREAS, the City has the authority to compel the owner, lessee or occupant of buildings, grounds, or lots to remove dirt, rubbish, weeds and rank growth from buildings or grounds and adjacent sidewalks (Government Code § 39501 et seq.); and WHEREAS, the City, by ordinance of the legislative body, can require and provide for the removal of said material; and
WHEREAS, the City can provide for the enforcement of abatement through a lien on property; and
WHEREAS, the City has the authority to establish fines, penalties and administrative fees for violations of various codes.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MCFARLAND DOES ORDAIN AS FOLLOWS:

Section 2. Chapter 18.22 is hereby added to the McFarland Municipal Code to read as follows:

Chapter 8.22 REMOVAL OF VEGETATIVE GROWTH AND/OR REFUSE

8.22.01 Generally.

Whenever the City Manager or authorized representative shall find vegetative growth, as described in Section 8-22.04, and/or refuse upon any property, lands, or lots in the City, which in his or her opinion is or may become a fire hazard or a health and safety hazard, he or she shall have cause to give to the owner of said property a notice to remove such vegetative growth and/or refuse which may constitute a hazard in the manner hereinafter provided in this part.

8.22.02 Definitions.

The following words, when used in this part, shall be defined as follows unless otherwise indicated:
(a) “City” means the City of McFarland.
(b) “City Manager” means the City Manager or authorized representative of the City Manager
(c) “Council” means City Council of the City.
(d) “Drainage” means any ditch, culvert, and/or pipe used as a means of public drainage or drainage control.
(e) “Noxious weeds” as defined in Government Code Section 39561.5 includes dry grass, stubble, brush, litter or other flammable material which endangers the public safety by creating a fire hazard.
(f) “Property” means and include lands, lots, drainage structures, drainage ways, and/or drainage easements.
(g) “Refuse” means waste matter, appliances, abandoned automobiles, junk, litter, trash, debris, dirt, cut vegetative growth, dead trees which threaten structures or streets, tin cans, paper, waste material of every kind, or other unsanitary substance, object, or condition which is, 2 or when dry, may become a fire hazard, or which is or may become a menace to health, safety, or welfare.
(h) “Street” means public streets, alleys, parkways, sidewalks, and areas between sidewalks and curbs.
(i) “Vegetative growth” means flammable vegetation and combustible growth.

8.22.03 Vegetative growth and/or refuse are public nuisances.

The City Council may declare, by resolution in accordance with Sections 39561—39700 of the Government Code, that vegetative growth, as described in Section 8-22.04 of this chapter, and/or refuse, which are, or may become, a hazard upon or in front of private property to the center line of adjoining streets in the City, are public nuisances.

Also, it is unlawful for any property owner in the City to cause or permit any vegetative growth, as described in Section 8-22.04 of this chapter, and/or refuse to remain on any real property in the City or on portions of streets adjoining such real property to the centerline of such streets. It shall be the duty of every such person to destroy such vegetative growth and remove or destroy such refuse. The City Council may also declare vegetative growth, as seasonal and recurring nuisances.

8.22.04 Clearance of vegetative growth.

Any person owning property in the City shall:
(a) Mow or otherwise remove dry noxious weeds, as defined, which are located on any vacant lot that is undeveloped with a structure.

8.22.05 Exemption to Section 8-22.04.

An exemption from Section 8-22.04 of this chapter shall apply to any land beyond fifty (50) feet from improved streets, as declared by the City, State or Federal Government, which has been acquired or is managed, for one or more of the following purposes:
(a) Animal pastures and agricultural fields growing hay or grains. The interior portion of fenced pastures where the quantity of livestock significantly reduces the vegetative growth, therefore bringing the parcel into compliance. Agricultural fields must be cut at harvest time.

Uncut hay and grain is subject to abatement;
(b) Habitat for endangered or threatened species, or any species that is a candidate for listing as an endangered or threatened species by the State of California or Federal Government; (c) Land kept in a predominantly natural state as habitat for wildlife, plant, or animal communities;
(d) Open space lands that are environmentally sensitive parklands; (e) Other lands having scenic values.

Abatement requirements shall remain in effect in waterways where flood preparation measures and emergency flood control mitigation is necessary. (1) This exemption applies whether the land or water are held in fee title or any lesser interest. This exemption applies to any public agency, and private entity that has dedicated the land or water areas to one or more of those purposes or uses, or any combination of public agencies and private entities making that decision.
(2) This section shall not be construed to prohibit the use of properly authorized prescribed burning to improve the biological function of land or to assist in the restoration of desired vegetation.
(3) In the event that any lands adjacent to land or water areas, as described above, are improved such that they are subject to this chapter, the obligation to comply with Section 8-

22.04 shall be with the person owning, leasing, controlling, operating or maintaining the occupied dwelling or occupied structure on the improved lands. All maintenance, activities and other fire prevention measures required by Section 8-22.04 shall be required only for the improved land and water areas as described above.

8.22.06 Drainage.

With the permission of the permitting agencies with jurisdiction over the area in question, any drainage shall be cleaned and maintained in a manner that does not restrict the natural or engineered flow of water.
3 8.22.07 RESERVED

8.22.08 Notice to destroy or remove vegetative growth and/or refuse.

In the event the person or persons owning, occupying, renting, managing, or controlling any real property in the City shall fail to remove therefrom and from the portions of streets adjoining such property all vegetative growth, as described in Section 8-22.04, and/or refuse in accordance with the provisions of this part, it shall be the duty of the City Manager or authorized representatives to notify such person(s) to remove the same.

The City Council may direct the City Clerk, in accordance with Section 39567.1 of the Government Code, to mail written notice of the proposed abatement to all persons owning property described in the resolution. The City Clerk shall cause such written notice to be mailed to each person to whom such described property is assessed in the last equalized assessment roll available on the date the resolution was adopted by the City Council. The address of the owner(s) shown on the assessment roll shall be conclusively deemed to be the proper address for the purpose of mailing such notice. Such notice shall be mailed at least fourteen (14) days prior to the time fixed for hearing objections by the City Council.

8.22.09 Form of notice.

The notice shall be substantially in the following form:

NOTICE TO DESTROY AND REMOVE RUBBISH, REFUSE, AND DIRT
Notice is hereby given on the day of , 20 , the City Council passed a resolution declaring that (insert the appropriate hazard: noxious weeds, vegetative growth, refuse, etc.) constitute a (insert the appropriate term: fire hazard, or health and safety hazard) which must be abated by the (insert the appropriate phrase: cutting of said noxious weeds, or removal of said health and safety hazard). If the owner does not abate the hazard it will be abated by the City and the cost of the removal assessed upon the County property tax bill, and will constitute a lien upon such land until paid. Reference is hereby made to the resolution for further particulars and Ordinance No. ___. A copy of said resolution is on file in the office of the City Clerk,
All property owners having any objections to the proposed removal of the hazard are hereby notified to attend a meeting of the City Council of the City of McFarland to be held , when their objections will be heard and given due consideration.

Dated this day of , 20 .

City Manager
City of McFarland

8.22.10 Hearing of objections.

At the time stated in the notices, the Council shall hear and consider all objections to the proposed removal of vegetative growth and/or refuse.

At the conclusion of the hearing, the Council shall allow or overrule any objections. At that time, the City acquires jurisdiction to proceed and perform the work of abatement. The decision of the Council is final.

8.22.11 Order to abate nuisance.

If objections have not been made or after the Council has disposed of those made, it shall order the City Manager to abate the nuisance(s).

8.22.12 Destruction and removal of vegetative growth and/or refuse by City.

In the event the person or persons owning, occupying, renting, managing, or controlling real property in the City shall fail to remove or destroy vegetative growth and/or refuse, in accordance with provisions of this ordinance within ten (10) calendar days after the hearing of objections an order to abate nuisance, it shall be the duty of the City Manager and his or her deputies, assistants, employees, contacting agent, or other representatives to destroy or remove such vegetative growth and/or refuse. They are expressly authorized to enter upon private property for such purpose. It is unlawful for any person to interfere, hinder, or refuse to allow 4 them to enter upon private property for the purpose(s) to destroy or remove vegetative growth and/or refuse, in accordance with the provisions of this part. Any person owning, occupying, renting, managing, leasing, or controlling real property in the City shall have the right to destroy or remove vegetative growth and/or refuse, or have the same destroyed or removed at his or her own expense, at any time prior to the arrival of the City Manager or his or her authorized representatives for such purpose(s).

8.22.13 Account and report of cost of abatement.

The City Manager or authorized representatives shall keep an account of the cost of abatement for each separate lot or parcel of land. he or she shall submit such itemized written report, showing such cost, to the Council for confirmation. Such report shall refer to each separate lot or parcel of land by description sufficiently reasonable to identify the same, together with the expense proposed to be assessed against it, which shall include charges sufficient to pay for the administrative costs of the program.

8.22.14 Notice of report and hearing.

The City Clerk shall make available a copy of such report and assessment list at his or her office together with the notice of the filing thereof and of the time and place when and where it will be submitted to the Council for hearing and confirmation. The copy shall be available for at least five (5) calendar days prior to the submission of the Council.

8.22.15 Hearing of report: Modification: Confirmation of report.

At the time and place fixed for receiving and considering the report, the Council shall hear the same, together with any protests or objections of the property owners liable to be assessed for the abatement. Upon the conclusion of such hearing, the Council shall then confirm the report by motion and the amount thereof shall constitute a lien on the property assessed until paid. The confirmation of the assessment by the Council shall be final and conclusive.

8.22.16 Report to Assessor and Tax Collector: Filing copy of report with County Auditor.

A certified copy of the report shall be filed with the County Auditor on or before August 10th of each year for entry of such assessment of the County tax roll. In the event the report cannot be prepared in time for the County Auditor to enter the assessment on the next immediate tax roll, the certified copy may be filed with the County Auditor anytime before August 10th of the succeeding year.

8.22.17 Collection of assessment: Penalties and procedures for foreclosure.

The amount of the assessment shall be collected at the time and in the manner of ordinary municipal taxes. If delinquent, the amount is subject to the same penalties and procedure of foreclosure and sale provided for ordinary municipal taxes.

Section 3. Section 10.14.020 is amended to read as follows:

10.14.020 Penalties.

A. Fines and penalties for violations of the California Vehicle Code are established by the State of California are applicable to all violations pursuant to state law. In the event that such fines and penalties are amended by the State of California, the Police Chief is authorized to adopt such changes without any additional approval of the City Council.

B. Fines and penalties for the McFarland Municipal Code Parking violations shall be adopted by resolution of the City Council of the City of McFarland.

C. In the event fines and penalties are amended by the state of California, the chief of police, or his designee, shall be authorized to amend such fines and penalties contained within this section as may be required to comply with such changes by the state of California, without approval of the city council.

Section 4. Section 18.04.010 is amended to read as follows:

18.04.010 City shall create a table of code enforcement fees and fines. 5 Code enforcement fees and fines are hereby created and shall be adopted by Resolution of the City Council annually and may be updated every year reflecting the Consumer Price Index.

Section 5. Section 18.08.010 is hereby deleted.

Section 6. Section 18.16.010 is hereby amended to read as follows:

18.16.010 Code enforcement fee waiver application.

A property owner, or their authorized agent, must submit a completed waiver application in order to determine waiver eligibility. They must also provide an explanation, additional information, or supporting documentation that may be relevant. The property owner or agent will be notified in writing about the application results.

Section 7. Notice. The City clerk shall certify to the passage and adoption of this ordinance and shall cause this Ordinance to be posted within 15 days after its passage, in accordance with Section 36933 of the Government Code.

Section 8. Severability. If any section, subsection, sentence, clause, phrase, or word of this Ordinance is, for any reason, deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or preempted by legislative enactment, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of McFarland hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or word thereof, regardless of the fact that any one or more sections, subsections, clauses, phrases, or word might subsequently be declared invalid or unconstitutional or preempted by subsequent legislation.

Section 9. Effective Date. This Ordinance shall take effect thirty days after its adoption pursuant to California Government Code section 36937.

Section 10. Certification; Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.

INTRODUCED, at a regular meeting of the City Council of the City of McFarland, California on the 27th day of July 2023, by the following vote:

PASSED, AND ADOPTED at a regular meeting of the City Council of the City of McFarland, California on the 10th day of August 2023, by the following vote:

Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
Maria Pérez
_____________________________
Saul Ayon, Mayor
I hereby certify that the foregoing Ordinance was duly and regularly adopted by the City Council of the City of McFarland by a regular meeting thereof held on August 10, 2023.

ATTEST:
_______________________________
Francisca Alvarado, City Clerk
6 APPROVED AS TO FORM:
____________________________
Nathan Hodges, City Attorney
1 | Page

CITY OF MCFARLAND

STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Kenny Williams, City Manager
Diego Viramontes, Finance Director
DATE: July 27, 2023
SUBJECT: Report, Discuss, and possible Approval of the Audited Financial statements for the period ending June 30, 2022, for the City of McFarland.

SUMMARY:

Clifton Larson Allen LLP (CLA) has prepared the Audited Financial Statements for the period ending June 30, 2022. The report has been prepared in conformity with the accounting principles generally accepted in the United States of America. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of McFarland for the fiscal year ended June 30, 2022, are free of material misstatements. The audit involved examining, on a test basis, the evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and estimates made by management; and evaluating the overall presentation of the financial statements. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of McFarland’s financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with generally accepted accounting principles.

FINANCIAL IMPACT:

None.

RECOMMENDATION:

Staff recommends the City Council discuss and possibly accept the City of McFarland’s Audited Financial Statements for the period of July 1, 2021, through June 30, 2022.

ATTACHMENT:

1. City of McFarland Fiscal Year 2022 Audited Financial Statements

2. City of McFarland Fiscal Year 2022 Single Audit Report

CITY OF MCFARLAND

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2022

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF MCFARLAND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

FINANCIAL SECTION

BASIC FINANCIAL STATEMENTS
GOVERNMENTAL ACTIVITIES 9

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES,
ACTIVITIES 12

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
NOTES TO BASIC FINANCIAL STATEMENTS 19

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
REVENUE FUND 48
REVENUE FUND 49

CITY OF MCFARLAND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
MAJOR SPECIAL REVENUE FUND 50
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 51

COMBINING FUND STATEMENTS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

FINANCIAL SECTION
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEP
Honorable Mayor and Members of the City Council
City of McFarland
McFarland, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of McFarland (the City), as of and for the year ended June 30, 2022, and the related notes to the financial 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, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) 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 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 requirements 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.

Emphasis of Matter
Restatements of Fund Balance and Net Position
was restated for the correction of errors in prior year financial statements. Our opinion is not modified with respect to this matter.

Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective July 1, 2021, the City of McFarland adopted new accounting guidance for leases. The guidance requires lessees to recognize a right-touse lease asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months.

Our opinions are not modified with respect to this matter.

Honorable Mayor and Members of the City Council
City of McFarland
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the 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 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 as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 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 GAAS 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 GAAS 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 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, 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.

Honorable Mayor and Members of the City Council
City of McFarland
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for 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. alysis, that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that statements. The combining nonmajor governmental fund
financial statements are presented for purposes of additional analysis and are 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 or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor governmental fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 8, 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 integral part of an audit performed in accordance with Government Auditing Standards in considering CliftonLarsonAllen LLP
Roseville, California
June 8, 2023
(4)

BASIC FINANCIAL STATEMENTS

CITY OF MCFARLAND
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(5)
Primary Government
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and Investments 5,257,725 $ 9,199,133 $ 14,456,858 $ Cash with Fiscal Agents 3,626,961 754,651 4,381,612
Receivables:

Accounts 81,587 905,682 987,269
Intergovernmental 4,029,888 3,979 4,033,867
Interest - 1,816 1,816
Leases 28,313 218,195 246,508
Other Assets 4,129 5,097 9,226
Internal Balances (120,277) 120,277 -
Loans Receivable 3,626,013 - 3,626,013
Land Held For Resale 446,593 - 446,593
Capital Assets:

Nondepreciable/Nonamortizable 3,299,731 1,280,063 4,579,794 Depreciable, Net 28,354,461 15,552,759 43,907,220
Right-to-Use Assets, Net 106,302 - 106,302
Total Assets 48,741,426 28,041,652 76,783,078

LIABILITIES
Accounts Payable 300,748 343,317 644,065
Accrued Liabilities 35,047 16,091 51,138
Interest Payable 54,717 69,303 124,020
Deposits Payable 151,397 18,539 169,936
Unearned Revenue 1,667,860 12,769 1,680,629
Long-Term Liabilities:

Due Within One Year 293,729 246,576 540,305
Due in More than One Year 5,188,143 5,525,000 10,713,143 Total Liabilities 7,691,641 6,231,595 13,923,236

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases 27,903 214,134 242,037

NET POSITION
Net Investment in Capital Assets 29,594,503 11,117,822 40,712,325 Restricted for:

General 112,365 - 112,365
Streets and Roads 1,843,176 - 1,843,176
Community Development 5,788,156 - 5,788,156
Debt Service 217,583 754,651 972,234
Unrestricted 3,466,099 9,723,450 13,189,549
Total Net Position 41,021,882 $ 21,595,923 $ 62,617,805 $

CITY OF MCFARLAND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(6)
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
Fees, Fines, and Operating Capital BusinessCharges for Grants and Grants and Governmental Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government:

Governmental Activities:

General Government 1,464,274 $ 3,067,553 $ - $ - $ 1,603,279 $ - $ 1,603,279 $ Public Safety 3,759,778 196,586 672,478 - (2,890,714) - (2,890,714) Public Works 1,696,956 61,588 1,348,410 409,876 122,918 - 122,918 Community Development 611,613 992,418 154,832 402,547 938,184 - 938,184 Interest on Long-Term Debt 193,709 - - - (193,709) - (193,709) Total Governmental Activities 7,726,330 4,318,145 2,175,720 812,423 (420,042) - (420,042) Business-Type Activities:

Sewer 1,606,175 2,023,238 - - - 417,063 417,063
Refuse 1,441,189 1,407,955 47,891 - - 14,657 14,657
Water 1,747,087 2,162,454 5,000 - - 420,367 420,367
Public Transportation 126,980 - 53,742 - - (73,238) (73,238) Total Business-Type Activities 4,921,431 5,593,647 106,633 - - 778,849 778,849 Total Primary Government 12,647,761 $ 9,911,792 $ 2,282,353 $ 812,423 $ (420,042) 778,849 358,807

GENERAL REVENUES AND

TRANSFERS
General Revenues:

Taxes:

Property Taxes 928,467 - 928,467
Sales and Use Taxes 524,930 - 524,930
Franchise Taxes 203,162 - 203,162
Intergovernmental, Unrestricted:

Motor Vehicle In-Lieu Tax 1,532,499 - 1,532,499
Interest and Investment Earnings 241 2,964 3,205
Lease Revenue 13,951 61,181 75,132
Settlements - 5,895,859 5,895,859
Miscellaneous 86,819 - 86,819
Transfers 47,755 (47,755) -
Total General Revenues and Transfers 3,337,824 5,912,249 9,250,073 CHANGE IN NET POSITION 6,691,098 2,917,782 9,608,880
Net Position - Beginning of Year as Restated 38,104,100 14,904,825 53,008,925 NET POSITION - END OF YEAR $ 21,595,923 41,021,882 $ 62,617,805 $ Program Revenues

CITY OF MCFARLAND
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(7)
ASSETS
Cash and Investments
Cash with Fiscal Agent
Receivables:

Accounts
Intergovernmental
Leases
Prepaid Items
Due from Other Funds
Loans Receivable
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Due to Other Funds
Advances from Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Related to Leases
Total Deferred Inflows of Resources

FUND BALANCES
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
General
Fund TDA-LTF Gas Tax CalHOME
$ 140,123 688,635 $ 1,074,238 $ 266,048 $
- - - -
- 78,204 - -
573,906 3,019,355 - -
- 28,313 - -
- 4,129 - -
- 674,252 - -
- - - 2,916,107
- 446,593 - -
$ 714,029 4,939,481 $ 1,074,238 $ 3,182,155 $
$ - 245,496 $ - $ - $
- 34,158 - -
- 151,397 - -
722,442 124,043 - -
- 114,211 - -
- 157,997 - -
722,442 827,302 - -
573,906 - - 2,916,107
- 27,903 - -
573,906 27,903 - 2,916,107
- 450,722 - -
- - 1,074,238 266,048
- 2,757,119 - -
876,435 - (582,319) -
4,084,276 1,074,238 (582,319) 266,048
$ 714,029 4,939,481 $ 1,074,238 $ 3,182,155 $

CITY OF MCFARLAND
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(8)
ASSETS
Cash and Investments
Cash with Fiscal Agent
Receivables:

Accounts
Intergovernmental
Leases
Prepaid Items
Due from Other Funds
Loans Receivable
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Due to Other Funds
Advances from Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Related to Leases
Total Deferred Inflows of Resources

FUND BALANCES
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
McFarland Other
Development Miscellaneous Improvement Governmental
Impact Grants Authority Funds Total
$ 1,700,219 631,553 $ - $ 756,909 $ 5,257,725 $
- - 3,626,961 - 3,626,961
- - - 3,383 81,587
- 2,588 - 434,039 4,029,888
- - - - 28,313
- - - - 4,129
- 1,209,542 - - 1,883,794
- - - 709,906 3,626,013
- - - - 446,593
$ 1,702,807 1,841,095 $ 3,626,961 $ 1,904,237 $ 18,985,003 $ $ 54,087 - $ - $ 1,165 $ 300,748 $
- - - 889 35,047
- - - - 151,397
- 26,908 501,698 514,769 1,889,860
- - - - 114,211
- 1,509,447 - 416 1,667,860
- 1,590,442 501,698 517,239 4,159,123
- - - 709,906 4,199,919
- - - - 27,903
- - - 709,906 4,227,822
- - - - 450,722
112,365 1,841,095 3,125,263 777,351 7,196,360
- - - - 2,757,119
- - - 193,857 (100,259)
112,365 1,841,095 3,125,263 677,092 10,598,058
$ 1,702,807 1,841,095 $ 3,626,961 $ 1,904,237 $ 18,985,003 $

CITY OF MCFARLAND

GOVERNMENT-WIDE STATEMENT OF NET
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(9)
Fund Balance - Total Governmental Funds 10,598,058 $
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds balance sheet. 31,760,494 e to pay for current period expenditures and
therefore are not reported in the governmental funds balance sheet. 4,199,919 Interest on long-term debt is recognized as it accrues, regardless of when it is due. (54,717) Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Bonds Payable (Net of Unamortized Premium) (4,541,487)
Loans Payable (750,804)
Notes Payable (26,835)
Lease Payable (108,517)
Compensated Absences (54,229)
Net Position of Governmental Activities 41,021,882 $

CITY OF MCFARLAND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(10)

REVENUES
Taxes
Licenses and Permits
Fines and Forfeitures
Use of Money and Property
Intergovernmental Revenues
Charges for Services
Contributions
Other Revenues
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Debt Service:

Principal
Interest and Fiscal Charges
Capital Outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Leases
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balance - Beginning of Year

FUND BALANCES - END OF YEAR
General
Fund TDA-LTF Gas Tax CalHOME
$ - 2,743,476 $ - $ - $
- 245,583 - -
- 44,267 - -
- 19,544 - -
2,105,508 725,993 296,927 -
- 3,259,696 - -
- 6,851 - -
- 78,561 - 55,000
2,105,508 7,123,971 296,927 55,000
- 637,204 - -
- 3,618,590 - -
- 699,807 - -
- 458,829 - -
- 125,121 - -
- 38,268 - -
- 1,453,375 - -
- 7,031,194 - -
2,105,508 92,777 296,927 55,000
- 3,271,486 - -
- - (1,965,385) -
- 4,414 - -
3,275,900 - (1,965,385) -
140,123 3,368,677 296,927 55,000
715,599 777,311 (722,442) 211,048
$ (582,319) 4,084,276 $ 1,074,238 $ 266,048 $

CITY OF MCFARLAND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(11)

REVENUES
Taxes
Licenses and Permits
Fines and Forfeitures
Use of Money and Property
Intergovernmental Revenues
Charges for Services
Contributions
Other Revenues
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Debt Service:

Principal
Interest and Fiscal Charges
Capital Outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Leases
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balance - Beginning of Year

FUND BALANCES - END OF YEAR
McFarland Other
Development Miscellaneous Improvement Governmental
Impact Grants Authority Funds Total
$ - - $ - $ 445,582 $ 3,189,058 $
- 763,217 - - 1,008,800
- - - - 44,267
- - - 30 19,574
470,030 - - 913,740 4,512,198
- - - - 3,259,696
- - - - 6,851
- - 1,407 - 134,968
470,030 763,217 1,407 1,359,352 12,175,412
495,675 - - - 1,132,879
- - - - 3,618,590
- - - 152,196 852,003
- - - - 458,829
- - 105,000 - 230,121
- - 167,300 - 205,568
- - - 401,973 1,855,348
495,675 - 272,300 554,169 8,353,338
763,217 (25,645) 805,183 (270,893) 3,822,074
66,387 - - - 3,337,873
- (170,399) - (1,154,334) (3,290,118)
- - - - 4,414
66,387 (170,399) - 52,169 (1,154,334)
40,742 592,818 (270,893) 3,874,243 (349,151)
71,623 1,248,277 3,396,156 1,026,243 6,723,815
$ 112,365 1,841,095 $ 3,125,263 $ 677,092 $ 10,598,058 $

CITY OF MCFARLAND

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES, AND YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(12)
Net Change to Fund Balance - Total Governmental Funds 3,874,243 $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Expenditures for Capital Outlay 1,855,348
Less: Current Year Depreciation (1,351,580)
Less: Current Year Amortization (81,763)
Less: Current Year Adjustments (18,370)
Some revenues reported in the statement of activities will not be collected for several and therefore are not reported as revenues in the governmental funds. (1,579,055) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. Also, governmental funds report the effect of premiums when debt is first issued; however, the amounts are deferred and amortized in the government-wide financial statements.

Principal Payments for Bonds, and Notes 150,573
Principal Payments for Leases 79,548
Proceeds from Issuance of Leases (4,414)
Change in Accrued Interest on Long-term Debt 3,197
Amortization of Premium 11,859
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in the governmental funds.

Change in Compensated Absences (21,804)
Change in Net Position of Governmental Activities 2,917,782 $

CITY OF MCFARLAND

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(13)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total
ASSETS
Current Assets:

Cash and Investments 1,167,918 $ 66,427 $ 7,865,696 $ 99,092 $ 9,199,133 $ Cash with Fiscal Agent - Restricted 509,645 - 245,006 - 754,651 Receivables:

Accounts 313,161 283,714 308,807 - 905,682
Intergovernmental 3,979 - - - 3,979
Interest - - 1,816 - 1,816
Leases 218,195 - - - 218,195
Due from Other Funds 4,419 4,114 1,360 604 10,497
Other Assets - - 5,097 - 5,097
Total Current Assets 2,217,317 354,255 8,427,782 99,696 11,099,050 Noncurrent Assets:

Advances to Other Funds 114,211 - - - 114,211
Capital Assets:

Nondepreciable:

Land 1,120,000 - 160,063 - 1,280,063
Depreciable:

Buildings, Equipment and
Infrastructure 14,981,845 309,677 12,481,930 650,896 28,424,348 Accumulated Depreciation (5,781,067) (308,646) (6,300,299) (481,577) (12,871,589) Total Noncurrent Assets 10,434,989 1,031 6,341,694 169,319 16,947,033 Total Assets 12,652,306 355,286 14,769,476 269,015 28,046,083

LIABILITIES
Current Liabilities:

Accounts Payable 51,124 194,882 82,528 14,783 343,317
Accrued Liabilities 7,479 1,812 5,199 1,601 16,091
Interest Payable 43,891 - 25,412 - 69,303
Due to Other Funds - - - 4,431 4,431
Deposits from Others - - 18,539 - 18,539
Unearned Revenue - - - 12,769 12,769
Compensated Absences 27,029 14,076 14,989 482 56,576
Bonds Payable 127,145 - 62,855 - 190,000
Total Current Liabilities 256,668 210,770 209,522 34,066 711,026 Noncurrent Liabilities:

Bonds Payable 3,681,287 - 1,843,713 - 5,525,000
Total Liabilities 3,937,955 210,770 2,053,235 34,066 6,236,026

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - Leases 214,134 - - - 214,134

NET POSITION
Net Investment in Capital Assets 6,512,346 1,031 4,435,126 169,319 11,117,822 Restricted for Debt Service 509,645 - 245,006 - 754,651 Unrestricted 1,478,226 143,485 8,036,109 65,630 9,723,450 Total Net Position 8,500,217 $ 144,516 $ 12,716,241 $ 234,949 $ 21,595,923 $

CITY OF MCFARLAND

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(14)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total

OPERATING REVENUES
Charges for Services 2,023,238 $ 1,407,955 $ 2,162,454 $ - $ 5,593,647 $

OPERATING EXPENSES
Salaries and Employee Benefits 604,288 123,473 500,881 63,371 1,292,013 Services and Supplies 260,642 1,313,005 303,713 29,707 1,907,067 Utilities 135,914 - 375,565 - 511,479
Depreciation 422,349 4,711 473,080 33,902 934,042
Total Operating Expenses 1,423,193 1,441,189 1,653,239 126,980 4,644,601 OPERATING INCOME (LOSS) 600,045 509,215 (33,234) 949,046 (126,980)

NONOPERATING REVENUES (EXPENSES)
Grants - 47,891 5,000 53,742 106,633
Lease Revenue 61,181 - - - 61,181
Interest Income 2,520 86 358 - 2,964
Interest Expense - (182,982) - (93,848) (276,830)
Settlements - - 5,895,859 - 5,895,859
Total Nonoperating
Revenues (Expenses) 47,977 (119,281) 5,807,369 53,742 5,789,807 INCOME (LOSS) BEFORE TRANSFERS 14,743 480,764 6,316,584 6,738,853 (73,238) TRANSFERS IN - 59,895 - 125,964 185,859
TRANSFERS OUT (83,877) (11,475) (134,765) (3,497) (233,614) CHANGE IN NET POSITION 3,268 456,782 6,181,819 49,229 6,691,098 Net Position - Beginning of Year 8,043,435 141,248 6,534,422 185,720 14,904,825 NET POSITION - END OF YEAR $ 144,516 8,500,217 $ 12,716,241 $ 234,949 $ 21,595,923 $

CITY OF MCFARLAND

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(15)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Receipts from Customers 1,973,587 $ 1,339,007 $ 2,099,881 $ 12,728 $ 5,425,203 $ Payments to Suppliers (397,137) (1,229,971) (660,433) (25,450) (2,312,991) Payments to Employees (602,383) (117,959) (506,918) (64,375) (1,291,635) Net Cash Provided (Used) by
Operating Activities 974,067 (8,923) 932,530 (77,097) 1,820,577

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Grant Proceeds - 47,891 5,000 53,742 106,633
Loans from Other Funds 44,657 - - 44,657
Nonoperating Receipts 61,181 - - - 61,181
Transfers from Other Funds 59,895 - - 125,964 185,859
Transfers to Other Funds (83,877) (11,475) (134,765) (3,497) (233,614) Settlements - - 5,895,859 5,895,859
Net Cash Provided (Used) by
Noncapital Financing Activities 81,856 36,416 5,766,094 176,209 6,060,575

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Payments Related to the Acquisition of
Capital Assets (108,698) - - (20) (108,718)
Principal Repayments Related to Capital
Purposes (123,949) - (61,051) - (185,000)
Interest Repayments Related to Capital
Purposes (190,685) - (93,848) - (284,533)
Net Cash Used by Capital and
Related Financing Activities (423,332) - (154,899) (20) (578,251)

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Earnings 2,520 86 358 - 2,964
Net Cash Provided by Investing
Activities 2,520 86 358 - 2,964

NET INCREASE IN CASH AND CASH
EQUIVALENTS 27,579 635,111 6,544,083 99,092 7,305,865
Cash and Cash Equivalents - Beginning
of Year 1,042,452 38,848 1,566,619 - 2,647,919

CASH AND CASH EQUIVALENTS -
END OF YEAR $ 66,427 1,677,563 $ 8,110,702 $ 99,092 $ 9,953,784 $ Cash and Investments 1,167,918 66,427 7,865,696 99,092 9,199,133 Cash with Fiscal Agent - Restricted 509,645 -- 245,006 -- 754,651

CASH AND CASH EQUIVALENTS -
PER STATEMENT OF NET POSITION $ 66,427 1,677,563 $ 8,110,702 $ 99,092 $ 9,953,784 $

CITY OF MCFARLAND

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(16)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total

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

OPERATING ACTIVITIES
Operating Income (Loss) 600,045 $ (33,234) $ 509,215 $ (126,980) $ 949,046 $ Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:

Depreciation 422,349 4,711 473,080 33,902 934,042
Increase in:

Accounts Receivable (45,590) (68,948) (67,255) - (181,793) Lease Receivable (218,195) - - - (218,195)
Increase (Decrease) in:

Accounts Payable (581) 83,034 18,845 4,257 105,555
Accrued Liabilities (7,904) (970) (10,534) (468) (19,876) Deposits - - 4,682 - 4,682
Deferred Inflows - Lease Related 214,134 - - - 214,134
Unearned Revenues - - - 12,728 12,728
Compensated Absences 9,809 6,484 4,497 (536) 20,254
Net Cash Provided (Used) by
Operating Activities 974,067 $ (8,923) $ 932,530 $ (77,097) $ 1,820,577 $

CITY OF MCFARLAND

STATEMENT OF NET POSITION

FIDUCIARY FUND
JUNE 30, 2022
(17)
Private
Purpose
Trust Fund
Successor
Agency
ASSETS
Cash and Investments 6,665 $
Total Assets 6,665

NET POSITION
Restricted for Successor Agency 6,665
Total Net Position 6,665 $

CITY OF MCFARLAND

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUND
YEAR ENDED JUNE 30, 2022
(18)
Private
Purpose
Trust Fund
RDA
Successor
Agency

ADDITIONS
Property Taxes - $
Total Additions -

DEDUCTIONS
Administration -
Total Deductions -

CHANGE IN NET POSITION -
Net Position - Beginning of Year 6,665
NET POSITION - END OF YEAR $ 6,665

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(19)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of McFarland, California (the City) was incorporated on July 18, 1957. The City government, providing the following services: general government; public safety; public works; and recreation and development. The City is located in Kern County approximately 25 miles north of Bakersfield, the County government seat.

The City has defined its reporting entity in accordance with accounting principles generally accepted in the United States of America which provide guidance for determining which governmental activities, organizations, and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the reporting entity, including all the fund types of the City.

Accounting principles generally accepted in the United States of America require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an se its will on that organization or there
is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.
discretely presented. Blended component units are, although legally separate entities, in combined with data of the primary government. Discretely presented component units, on the other hand, would be reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the government.

Blended Component Units
Parking Authority
Parking Authority) was formed by the City on April 12, 2012, by Resolution No. 2012-069, under Part 2 of Division 18 of the California Streets and Highways Code, Directors of the Parking Authority. The fundamental aim of the Parking Authority is to purchase property and construct a public parking lot on that property. The Parking Authority did not report any activity during the year. Separate financial statements are not available for the Authority.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(20)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Blended Component Units (Continued)
McFarland Improvement Authority
the Parking Authority and the City entered into a Joint Exercise of Powers Agreement to create the McFarland Improvement Authority (the Improvement Authority). The Improvement Authority. The fundamental aim of the Improvement Authority is to provide for the financing of capital improvements and working capital. The Improvement Authority issued bonds for the purpose of funding capital improvements. Separate financial statements are not available for the Authority.

McFarland Public Financing Corporation
Agency to the Former McFarland Redevelopment Agency entered into a Joint Exercise of Powers Agreement establishing the McFarland Public Financing Corporation (the Corporation) for the purpose of issuing its bonds to be used to provide financial assistance to the City, the Agency or any other public entity of the state of California. The City Council of McFarland is the governing body for the Corporation. The McFarland Public Financing Corporation did not report any activity during the year. Separate financial statements are not available for the Corporation.

Discretely Presented Component Units
There are no component units of the City which meet the criteria for discrete presentation.

B. Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information on all of the nonfiduciary activities of the City and its blended component units. These statements include the financial activities of the overall government, except fiduciary activities.

Eliminations have been made to minimize the double counting of internal activities.

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, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(21)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Government-Wide Financial Statements (Continued)
The statement of activities presents a comparison between direct expenses and governmental activities. Direct expenses are
those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Certain indirect costs, which cannot be identified and broken down are included in the program expense reported for individual functions and activities. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions, and 3) capital grants and contributions. Taxes and other items not properly included among program revenues are presented instead as general revenues.

Fund Financial Statements
fiduciary funds and blended component units. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis is placed on major funds within the governmental and proprietary categories, each is displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

The City reports the following major governmental funds:

The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General fund includes such activities as general government, public safety, public works, and recreation and development.

The TDA-LTF Fund
Development Allocation which is legally restricted for specific purposes, primarily street construction and maintenance and related street expenditures. This fund also accounts for other state and federal grant revenues related to street maintenance or construction.

The Gas Tax Fund is used to account for highway users tax allocated by the state of California.

The CalHOME Fund is used to account for a CalHOME Homeownership Project Development Program award.

The Development Impact Fund is used to account for impact fees.

The Miscellaneous Grants Fund is used to account for grants not frequently awarded to the City.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(22)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
The McFarland Improvement Authority Fund is reported as debt service fund and is used to account for the activities of the McFarland Improvement Authority, including debt repayment.

The City reports the following major proprietary funds:

The Sewer Fund is used to account for the provisions of sewer service to the residents of the City. All activities necessary to provide such service are accounted for in this fund.

The Refuse Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such service are accounted for in this fund.

The Water Fund is used to account for the provisions of water service to residents of the City. All activities necessary to provide such service are accounted for in this fund.

The City reports the following additional fund type:

The RDA Successor Agency Private Purpose Trust Fund is a fiduciary fund used to account for monies received from the Kern County Auditor Controller for the repayment of the enforceable obligations of the former McFarland Redevelopment Agency. These funds are restricted for the sole purpose of payment on items on an approved Recognized Payment Obligation Schedule.

C. Basis of Accounting and Measurement Focus
The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales tax, grants, entitlements, and donations. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(23)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting and Measurement Focus (Continued) 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. Property and sales taxes, interest and charges for services are considered susceptible to accrual and are accrued when their receipt occurs within 60 days after the end of the fiscal year. Certain state and federal grants are considered susceptible to accrual and are accrued when their receipt occurs within 180 days after the end of the fiscal year. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in the various functions of the governmental funds.

Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets.

All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

D. Cash and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interestbearing accounts and other investments for varying terms.

Certain disclosure requirements for deposits and investment risks were made in the following areas: Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentrations of Credit Risk.

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

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Interest earned on investments is allocated using the Local Agency Fund (LAIF) factor to selected funds by the City.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(24)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Cash and Investments (Continued)
The City participates in an investment pool LAIF, which has invested a portion of the subject to credit risk with the full faith and credit of the state of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to changes in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City statements.

E. Receivables
Receivables for governmental activities consist mainly of accounts, intergovernmental, and interest. Receivables for business-type activities consist mainly of user fees, intergovernmental, and interest earnings. Management believes its receivables are fully collectible and, accordingly, no allowance for doubtful accounts is required.

F. Other Assets
Prepaid Items
Payments made for services that will benefit future accounting periods are recorded as prepaid costs in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Prepaid costs do not reflect current appropriable resources and thus, an equivalent portion of fund balance is reported as nonspendable.

G. Loans Receivable
Loans receivable represent low interest notes and related accrued interest to finance multi-family and single family construction and rehabilitation projects, homebuyer assistance for low income families, as well as business start-up costs. Loan terms are 15 to 55 years with an interest rate at 0% to 5%. The primary source of funding for these loans comes from grants from the Community Development Block Grant (CDBG) program and Home Investment Partnerships (HOME) program. The CDBG and HOME grants contain monitoring requirements to ensure grant compliance. These requirements are reflected in the loan agreements.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(25)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets
Capital and Right-to-Use assets, which include property, plant, equipment and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital and Right-to-Use assets are defined by the City as assets with an initial cost of more than $1,000 ($25,000 for infrastructure) and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at the estimated acquisition value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Capital and Right-to-Use assets used in operations are depreciated or amortized using the straight line method over the assets estimated useful life in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:

Depreciable/Amortizable Asset Estimated Lives
Buildings 15 to 40 Years
Improvements Other Than Buildings 15 to 40 Years
Machinery and Equipment 5 to 20 Years
Infrastructure 20 to 50 Years
I. Leases
Leases are defined by the general government as the right to use an underlying asset.

As lessee, the City recognizes a lease liability and an intangible right-of-use lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying asset. Right-of-use lease assets are measured based on the net present value of the future lease payments at inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Remeasurement of a lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The City calculates the amortization of the discount on the lease liability and reports that amount as outflows of resources. Payments are allocated first to accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations but are recognized as outflows of resources in the period in which the obligation was incurred.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(26)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Leases (Continued)
As lessor, the City recognizes a lease receivable. The lease receivable is measured using the net present value of future lease payments to be received for the lease term and deferred inflow of receivables at the beginning of the lease term. Periodic amortization of the discount on the receivable are reported as interest revenue for that period. Deferred inflows of resources are recognized as inflows on a straight-line basis over the term of the lease. This recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivables occur when there are modifications, including but not limited to changes in the contract price, lease term, and adding or removing an underlying asset to the lease agreements. In the case of a partial or full lease termination, the carrying value of the lease receivable and the related deferred inflow of resources will be reduced and will include a gain or loss for the difference.

J. Property Tax
Secured property taxes are levied during September of each year for the fiscal year beginning with the preceding July 1 and ending the following June 30. They become a lien on real property on January 1 preceding the fiscal year for which taxes are levied.

The Kern County Assessor establishes the value of the property on January 1. Taxes are payable in two installments on November 1 and February 1, and are delinquent if not paid by December 10 and April 10, respectively. In 1978, a state constitutional amendment (Proposition 13) provided that the tax rate be limited to 1% of market value, levied only by the County and shared with all other jurisdictions. Such limitation on the rate may only be increased through voter approval. The County collects property taxes assessed valuations and on the tax rate for voter-approved debt.

K. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.
the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(27)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Interfund Transactions (Continued)
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide statement of activities.

Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.

All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation.

L. Unearned Revenue
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned. When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue.

M. Compensated Absences
sick pay benefits up to certain limits. For governmental funds, compensated absences are recorded as current and noncurrent liabilities only on the government-wide financial statements. For proprietary funds, current and noncurrent liabilities for compensated absences are recorded in both the government wide financial statements and the fund financial statements. There is no liability for unpaid sick leave since the City does not pay such amounts when employees separate from service with the City.

N. Long-Term Obligations
In the government-wide financial statements and in the proprietary fund financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.

Bond issuance costs are expensed when bonds are issued.

In governmental fund financial statements, bond premiums and discounts, as well as debt issuance costs are recognized in the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuance are also reported as other financing sources. Issuance costs, whether or not withheld from the actual debt proceeds, are reported as debt service expenditures.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(28)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position
The government-wide and business-type activities fund financial statements utilize a net position presentation. Net position is categorized as follows:

Net Investment In Capital Assets
including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position
by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position
not restricted for any project or other purpose or included in net investment in capital assets.
policy to use restricted net position first, and then unrestricted net position as they are needed.

P. Fund Balance
Fund balances of the governmental funds are presented in the financial statements based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. Fund balances are classified as follows:

Nonspendable
spendable form or because they are legally or contractually required to be maintained intact.

Restricted
governments, etc.) or by constitutional provision or enabling legislation.

Committed
internally imposed by the government through formal action (Ordinances and Resolutions) at the highest level of decision making authority (City Council).

These commitments can only be overturned by a like action.

Assigned
considered neither restricted nor committed. Undesignated excess Fund Balances may be assigned by the City Council, City Manager, or Finance Director for specific purposes through the budget process or agenda items. The assigned designation may be reversed by the City Council at any public meeting.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(29)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance (Continued)
Unassigned
have not been classified within the other above mentioned categories.

Unassigned Fund Balances may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

When expenditures are incurred for purposes for which all restricted, committed, following order, except for instances wherein an ordinance specifies the fund balance to be charged: Restricted, Committed, Assigned, and Unassigned.

The City does not have a formal minimum fund balance requirement.

Q. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

R. Implementation of New Governmental Accounting Standards The Governmental Accounting Standards Board (GASB) releases new accounting and reporting process. New standards applicable to the year ended June 30, 2022, are as follows:

Leases
This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The City implemented this standard.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(30)
NOTE 2 CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds, which are held and invested by independent outside custodians through contractual agreements are not pooled.

Statement of Net Position:

Cash and Investments 14,456,858 $
Cash with Fiscal Agents 4,381,612
Statement of Fiduciary Net Position:

Cash and Investments 6,665
Total 18,845,135 $
Cash and investments as of June 30, 2022, consist of the following:

Deposits with Financial Institutions 18,483,828 $
Cash on Hand 3,000
Investments 358,307
Total 18,845,135 $
Deposits
accounts and money market accounts) was $18,845,135 and the bank balance was $18,937,919. The difference between the bank balance and the carrying amount represents outstanding warrants and wire transfers and deposits in transit.

Custodial Credit Risk
In the case of deposits, this is the risk t
deposits may not be returned to it. The City has no deposit policy for custodial credit risk.

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(31)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Deposits (Continued)
Custodial Credit Risk (Continued)
Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository is considered to be held for, and in the name of, the local governmental agency.

Investments
The City had the following investments at June 30, 2021:

Investment Type Fair Value Maturity Date
State Treasurer's Investment Pool (LAIF) 358,307 $ N/A
Total Investments 358,307 $
Interest Rate Risk
maturities. The City has no investment policy for interest rate risk.

Credit Rating Risk
The City is required to disclose the credit quality ratings of investments in debt securities as issued by nationally recognized statistical rating organizations. At June 30, 2022, the Credit rating for investment in LAIF was unavailable. The City has no investment policy for credit risk.

Concentration of Credit Risk
The City is required to disclose any investment in any one issuer that represents 5% or more of total investments. Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this requirement. As such, the City has no concentration of credit risk that exceeds 5%. The City has no investment policy for concentration of credit risk.

Custodial Credit Risk
For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit use of mutual funds or government investment pools (such as LAIF). The City has no investment policy for custodial credit risk.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(32)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments (Continued)
Custodial Credit Risk (Continued)
The table below identifies the investment types that are authorized for the City of more restrictive). The table also identifies certain provisions of the California addresses investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the Maximum Minimum
Maximum Percentage Quality
Authorized Investment Type Maturity of Portfolio Requirements Local Agency Bonds 5 Years None None
U.S. Treasury Obligations 5 Years None None
State Obligations 5 Years None None
CA Local Agency Obligations 5 Years None None
U.S. Agency Obligations 5 Years None None
Bankers Acceptance 180 Days 40% None
Commercial Paper - Select Agencies 270 Days 25% A-1
Commercial Paper - Other Agencies 270 Days 40% A-1
Negotiable Certificates of Deposit 5 Years 30% None
CD Placement Service 5 Years 30% None
Repurchase Agreements 1 Year None None
Reverse Repurchase Agreements 92 Days 20% None
Medium-Term Notes 5 Years 30% A
Mutual and Money Market Funds N/A 20% Multiple
Collateralized Bank Deposits 5 Years None None
Mortgage Pass-Through Securities 5 Years 20% AA
Bank/Time Deposits 5 Years None None
County Pooled Investment Funds N/A None None
Joint Powers Authority Pool N/A None Multiple
Local Agency Investment Fund (LAIF) N/A None None
Fair Value of Investments
The City measures and records its investments using fair value measurement guidelines established by accounting principles generally accepted in the United States of America.

These guidelines recognize a three-tiered fair value hierarchy, as follows:

Level 1
Level 2
Level 3

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(33)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value of Investments (Continued)
and looking through to the underlying investments of the pool is not appropriate. Therefore, value hierarchy described above.

Investment in External Investment Pools
The City maintains an investment in the state of California Local Agency Investment Fund (LAIF), managed by the State Treasurer. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State Code. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. is the same as the value of the pool shares. There are no restrictions on withdrawal of funds. The total amount invested by all public agencies in LAIF on that day was $240.4 billion. Of that amount, 97.19% is invested in nonderivative financial products and 2.81% in structured notes and asset-backed securities.

Restricted Cash and Investments with Fiscal Agents
Cash and investments at June 30, 2022, that are restricted by legal or contractual requirements are comprised of the following:

Governmental Activities:

McFarland Improvement Authority:

Reserves for Capital Projects 3,354,064 $
Debt Service Reserves 272,897
Total McFarland Improvemant Authority: 3,626,961
Business-Type Activities:

Sewer Fund:

Debt Service Reserves 509,645
Water Fund:

Debt Service Reserves 245,006
Total 754,651
Total Restricted Cash and Investments $ 4,381,612

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(34)
NOTE 3 CAPITAL ASSETS
Capital and right-to-use assets activity for the year ended June 30, 2022, was as follows:

Balance
July 1, 2021 Transfers/ Balance
As Restated Additions Retirements Adjustments June 30, 2022 Governmental Activities:

Capital Assets, Not Being Depreciated:

Land 993,176 $ - $ - $ - $ 993,176 $
Construction In Progress 4,477,613 1,103,148 - (3,274,206) 2,306,555 Total Capital Assets, Not Being
Depreciated 5,470,789 1,103,148 - (3,274,206) 3,299,731 Capital Assets, Being Depreciated:

Infrastructure 32,772,180 - - 3,274,206 36,046,386
Machinery and Equipment 1,523,781 455,576 - - 1,979,357 Vehicles 1,139,020 292,210 - (218,734) 1,212,496
Total Capital Assets, Being
Depreciated 35,434,981 747,786 - 3,055,472 39,238,239
Less Accumulated Depreciation for:

Infrastructure (7,411,221) (1,122,815) - - (8,534,036)
Machinery and Equipment (1,281,699) (140,373) - - (1,422,072) Vehicles (879,878) (88,392) - 40,600 (927,670)
Total Accumulated Depreciation (9,572,798) (1,351,580) - 40,600 (10,883,778) Total Capital Assets, Being
Depreciated, Net 25,862,183 (603,794) - 3,096,072 28,354,461 Right-to-Use Assets, Being Amortized:

Machinery and Equipment 183,651 4,414 - - 188,065
Total Right-to-Use Assets, Being
Amortized 183,651 4,414 - - 188,065
Less Accumulated Amortization for:

Machinery and Equipment - (81,763) - - (81,763)
Total Accumulated Amortization - (81,763) - - (81,763)
Total Right-to-Use Assets, Being
Amortized, Net 183,651 (77,349) - - 106,302
Governmental Activities Capital
Assets, Net 31,516,623 $ 422,005 $ - $ (178,134) $ 31,760,494 $

CITY OF MCFARLAND

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JUNE 30, 2022
(35)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Balance Transfers/ Balance
As Restated Additions Retirements Adjustments June 30, 2022 Business-Type Activities:

Capital Assets, Not Being Depreciated:

Land 1,280,063 $ - $ - $ - $ 1,280,063 $
Total Capital Assets, Not Being
Depreciated 1,280,063 - - - 1,280,063
Capital Assets, Being Depreciated:

Infrastructure 6,836,223 - - - 6,836,223
Buildings and Improvements 8,579,010 - - - 8,579,010
Machinery and Other 11,894,931 66,387 - 15,020 11,976,338 Vehicles 1,005,466 - - 27,311 1,032,777
Total Capital Assets, Being
Depreciated 28,315,630 66,387 - 42,331 28,424,348
Less Accumulated Depreciation for:

Infrastructure (552,345) (170,905) - - (723,250)
Buildings and Improvements (2,772,121) (410,658) - - (3,182,779) Machinery and Other (7,767,015) (324,055) - - (8,091,070) Vehicles (846,066) (28,424) - - (874,490)
Total Accumulated Depreciation (11,937,547) (934,042) - - (12,871,589) Total Capital Assets, Being
Depreciated, Net 16,378,083 (867,655) - 42,331 15,552,759 Business-Type Activities Capital
Assets, Net 17,658,146 $ (867,655) $ - $ 42,331 $ 16,832,822 $ Depreciation
Depreciation expense was charged to governmental functions as follows at June 30, 2022:

General Government 308,977 $
Public Safety 44,866
Public Works 844,953
Community Development 152,784
Total Depreciation Expense - Governmental
Functions 1,351,580 $
Depreciation expense was charged to business-type functions as follows at June 30, 2022:

Solid Waste 422,349 $
Refuse 4,711
Water 473,080
Public Transit 33,902
Total Depreciation Expense - Business-Type
Functions 934,042 $

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(36)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Amortization
Amortization expense was charged to governmental functions as follows at June 30, 2022:

General Government 3,811
$

Public Safety 77,952
Total Amortization Expense - Governmental
Functions 81,763
NOTE 4 INTERFUND TRANSACTIONS
Due to/from Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds. The following are due from and due to balances as of June 30, 2022:

Due from Due to
Other Funds Other Funds
General Fund 674,252 $ 124,043 $
McFarland Improvement Authority - 501,698
TDA - LTF - 722,442
Development Impact - 1,209,542
Miscellaneous Grants 26,908 -
Sewer - 4,419
Refuse - 4,114
Water - 1,360
Nonmajor Governmental Funds - 514,769
Nonmajor Enterprise Fund 604 4,431
Total 1,894,291 $ 1,894,291 $
Advances from/to Other Funds
The amount payable to the Sewer Fund relate to a loan for capital projects, including park facilities and other public infrastructure and facilities. The loan is scheduled to be repaid in 2024:

Advances to Advances from
Other Funds Other Funds
General Fund - $ 114,211 $
Sewer - 114,211
Total 114,211 $ 114,211 $
$

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(37)
NOTE 4 INTERFUND TRANSACTIONS (CONTINUED)
Transfers
Transfers are indicative of funding for capital projects, and lease payments or debt service.

The following are the interfund transfer balances for the year ended June 30, 2022:

Transfer In Transfer Out
General Fund 3,271,486 $ - $
TDA - LTF 1,965,385 -
Development Impact 170,399 -
Miscellaneous Grants - 66,387
Sewer 83,877 59,895
Refuse 11,475 -
Water 134,765 -
Nonmajor Governmental Funds - 1,154,334
Nonmajor Enterprise Fund 125,964 3,497
Total 3,523,732 $ 3,523,732 $
During the year, the City transferred $1,965,385 from its TDA-LTF Fund to the General Fund to fund capital projects. Transfers from COPS ($744,627) and Road Maintenance and Rehabilitation ($409,707) to the General Fund were made to fund related projects expended in the General Fund.

NOTE 5 UNEARNED/UNAVAILABLE REVENUE
Unearned revenue consists of moneys received where the City has not yet incurred the qualifying expenditures.

Deferred inflows of resources represents an acquisition of net position or fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has one transaction type that qualifies for reporting under this category: unavailable revenue. Unavailable revenue is only reported in the governmental funds balance sheet under the modified accrual basis of accounting.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(38)
NOTE 5 UNEARNED/UNAVAILABLE REVENUE (CONTINUED)
At June 30, 2022, components of unearned and unavailable revenues were as follows:

Unearned Unavailable
Revenue Revenue Total
General Fund:

Grant Revenue 157,997 $ - $ 157,997 $
TDA:

Grant Revenue - 573,906 573,906
CalHOME:

Grant Revenue and Loans - 2,916,107 2,916,107
Miscellaneous Grants:

Grant Revenue and Loans 1,509,447 - 1,509,447
Nonmajor Governmental Funds:

Grant Revenue and Loans 416 709,906 710,322
Total Governmental Activities 1,667,860 $ 4,199,919 $ 5,867,779 $ Public Transit:

Grant Revenue 12,769 $
Total Business-Type Activities 12,769 $
NOTE 6 LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:

Restated Amounts
Balance Balance Due Within
Type of Indebtedness July 1, 2021 Additions Retirements Adjustments June 30, 2022 One Year Governmental Activities:

Direct Placement
Revenue Bonds 4,350,000 $ - $ (105,000) $ - $ 4,245,000 $ 105,000 $ Unamortized Premiums on Bonds 308,346 - (11,859) - 296,487 - Direct Borrowing
Notes Payable 982,976 - (45,573) (159,764) 777,639 46,985 Other Liabilities
Leases 183,651 4,414 (79,548) - 108,517 87,515
Compensated Absences 32,425 - 21,804 - 54,229 54,229
Total Governmental Activities 5,857,398 $ 4,414 $ (220,176) $ (159,764) $ 5,481,872 $ 293,729 $ Business-Type Activities:

Direct Placement
Revenue Bonds 5,900,000 $ - $ (185,000) $ - $ 5,715,000 $ 190,000 $ Other Liabilities
Compensated Absences 36,322 20,254 - - 56,576 56,576
Total Business-Type Activities 5,936,322 $ 20,254 $ (185,000) $ - $ 5,771,576 $ 246,576 $ Compensated absences for the governmental activities are generally liquidated by the fund where the accrued liability occurred.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(39)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Individual issues of debt payable outstanding at June 30, 2022, are as follows:

Governmental Activities:

Revenue Bonds:

Series 2017 Lease Revenue Bonds dated
December 1, 2017, in the original amount of
$4,450,000 at 3% to 4% interest; principal
and interest payable each March 1 and
September 1 until September 2, 2047,
maturity. Bonds issued by the McFarland
Improvement Authority. Secured by a pledge
of lease revenues. $ 4,245,000
Total Revenue Bonds 4,245,000
Notes Payable:

Note payable to the United States
Department of Agriculture in the amount of
$770,898; principal and interest at 3.375%
due each October 1 through 2058. 750,804
Note payable to the KS State Bank for a
street sweeper in the amount of $119,186;
principal and interest at 4.45% due each
month through March 2024. 26,835
Total Notes Payable 777,639
Total Governmental Activities $ 5,022,639
Business-Type Activities:

Revenue Bonds:

Revenue Bonds dated September 21,
2010, in the original amount of $7,500,000
at 0.65% to 5% interest; payable semiannually commencing April 1, 2011.

Principal is due annually commencing
October 1, 2011, with final payment due
October 1, 2040. Secured by a pledge of
water and wastewater net revenues. $ 5,715,000

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(40)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
The following are schedules of debt service requirements as of June 30, 2022:

Year Ending June 30, Principal Interest Principal Interest 2023 105,000 $ 164,150 $ 46,985 $ 2,207 $
2024 110,000 161,000 41,223 2,150
2025 115,000 157,700 20,264 2,093
2026 115,000 154,250 20,321 2,036
2027 120,000 150,800 20,378 1,979
2028 - 2032 675,000 684,000 102,754 9,032
2033 - 2037 810,000 538,800 104,207 7,579
2038 - 2042 995,000 362,400 105,681 6,105
2043 - 2047 1,200,000 148,000 107,176 4,611
2048 - 2052 - - 108,691 3,095
2053 - 2057 - - 99,959 1,558
2058 - - - 188
Total 4,245,000 $ 2,521,100 $ 777,639 $ 42,633 $
Year Ending June 30, Principal Interest
2023 190,000 $ 277,213 $
2024 200,000 268,925
2025 210,000 260,213
2026 215,000 250,375
2027 225,000 239,375
2028 - 2032 1,315,000 1,010,625
2033 - 2037 1,680,000 638,000
2038 - 2042 1,680,000 173,000
Total 5,715,000 $ 3,117,726 $
Governmental Activities
Revenue Bonds Note Payable
Business-Type Activities
Revenue Bonds
Pledged Revenues
The City has pledged future water and wastewater utility revenue to repay revenue bonds issued in 2010. The various bonds were issued for the purchase of construction of various water or wastewater infrastructure. At June 30, 2022, $5,715,000 remains outstanding to be repaid by future water and wastewater revenues. If such revenues prove insufficient, the remainder will be repaid as a general obligation of the City. For the fiscal year ended June 30, 2022, the net revenue available for service of this debt was $1,109,260. The debt principal and interest paid in fiscal year 2021-2022 equals $469,534 (42.3% of available pledged net revenues).

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(41)
NOTE 7 LEASES
Leases Payable
The City leases equipment as well as certain operating and office facilities for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through 2027 with interest rates ranging from 7.3918 to 14.4717%.

Total future minimum lease payments under lease agreements are as follows:

Year Ending June 30, Principal Interest
2023 $ 6,578 87,515 $
2024 1,098 13,497
2025 533 5,167
2026 168 1,832
2027 18 506
Total Minimum Lease Payments $ 8,395 108,517 $
Governmental Activities
Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.

Governmental
Activities
Equipment 188,065 $
Less: Accumulated Amortization (81,763)
Total 106,302 $
Leases Receivable
The City, acting as a lessor, leases various assets under long-term, noncancelable lease agreements with no interest. The leases expire at various dates through 2026. During the year ended June 30, 2022, the City recognized $13,951 for governmental activities and $61,181 for business type activities in lease revenue and no interest revenue, pursuant to these contracts. Total minimum lease payments to be received under lease agreements are as follows:

Year Ending June 30, Principal Interest Principal Interest 2023 $ - 13,947 $ 59,405 $ - $
2024 - 14,366 61,781 -
2025 - - 64,252 -
2026 - - 32,757 -
Total Minimum Lease Payments $ - 28,313 $ 218,195 $ - $ Governmental Activities Business Activities

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(42)
NOTE 8 FUND BALANCES
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent.

The fund balances for all major and nonmajor governmental funds as of June 30, 2022, were distributed as follows:
ancy McFarland Other
Development Miscellaneous Improvement Governmental
General TDA-LTF Gas Tax CalHOME Impact Grants Authority Funds Total Nonspendable:

Prepaids $ - 4,129 $ - $ - $ - $ - $ - $ - $ 4,129 $
Land Held for Resale - 446,593 - - - - - - 446,593
Subtotal - 450,722 - - - - - - 450,722
Restricted for:

Streets and Transportation - - 1,074,238 - - - - 777,351 1,851,589 Impact Fees - - - - 1,841,095 - - - 1,841,095
CalHOME - - - 266,048 - - - - 266,048
General Government - - - - - 112,365 - - 112,365
Debt Service - - - - - - 272,300 - 272,300
Capital Projects - - - - - - 2,852,963 - 2,852,963
Subtotal - - 1,074,238 266,048 1,841,095 112,365 3,125,263 777,351 7,196,360 Assigned to:

CUP Fees for Capital Projects - 2,757,119 - - - - - - 2,757,119 Subtotal - 2,757,119 - - - - - - 2,757,119
Unassigned 876,435 (582,319) - - - - - (100,259) 193,857 Total $ (582,319) 4,084,276 $ 1,074,238 $ 266,048 $ 1,841,095 $ 112,365 $ 3,125,263 $ 677,092 $ 10,598,058 $ NOTE 9 RETIREMENT PLAN
A. General Information about the Pension Plan
Plan Description
and beneficiaries. The plan is administrated by John Hancock Life Insurance Company.

Funding Policy
years of service. Vesting is at 33% per year over three years. In the event an employee terminates service prior to retirement, the employee is entitled to a refund of the During the current year, the City was required to make contributions to the plan in the amount of $243,232. The plan also included $4,753 of forfeitures during the current year.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(43)
NOTE 10 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts: theft of, damage to and destruction of assets: errors and omissions; injuries to employees; and natural disasters.

Central San Joaquin Valley Risk Management Authority (the RMA). The RMA is comprised of 55 member cities and special districts and is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of the RMA is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. Each member has a representative on the Board of Directors with officers of the RMA being elected annually by the Board Members.

General Liability
Annual deposits are paid by members and are adjusted retrospectively to cover costs. Each $25,000. The city is responsible for the first $25,000 of each occurrence. The City does not share or pay for losses of other members with SIRs under $25,000. Specific coverage includes general and automobile liability, personal injury, errors and omissions, and certain other coverage. Claims from $25,000 to $1,000,000 are covered by a special pre-funded self-insurance pool maintained by the RMA. Claims from $1,000,000 to $4,000,000 are selfinsured by the California Affiliated Risk Management Authorities (CARMA), a joint powers authority providing excess coverage to a membership consisting of six underlying joint powers authorities, representing approximately 175 cities and special districts. Claims from $4,000,000 to $39,000,000 are covered by Excess Comprehensive General Liability Policies.

Annual deposits are paid by members and are adjusted retrospectively to cover costs. Each $25,000 per occurrence. The City is responsible for the first $25,000 of each occurrence.

The City does not share or pay for losses of other members with SIRs under $25,000.

Losses between $25,000 and $500,000 are covered by a special pre-funded self-insurance pool maintained by the RMA.

Compensation Excess Joint Powers Authority which is a joint powers authority providing excess coverage to 36 members including cities, special districts, and joint powers authorities. Claims in excess of $5,000,000 are self-insured by the California State Association of Counties Excess Insurance Authority, another joint powers authority.

There were no settlements in excess of insurance coverage in any of the three prior fiscal years.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(44)
NOTE 10 RISK MANAGEMENT (CONTINUED)
The audited financial information from Central San Joaquin Valley Risk Management Authority for the year ended June 30, 2022, is as follows:

Total Assets 150,837,823 $
Total Liabilities 118,663,929
Net Position 32,173,894 $
Total Revenues 58,911,480 $
Total Expenses 47,584,363
Change in Net Position 11,327,117 $
Complete audited financial statements can be obtained from their office at 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.

NOTE 11 OTHER INFORMATION
Fund Deficits
The City has accumulated fund deficits in the following individual funds:

Governmental Funds:

TDA-LTF 582,319 $
CDBG 13,888
HOME 85,457
COPS 914
Commitments
The City has signed agreements to construct various capital improvements subsequent to June 30, 2022. The balance owed on the commitments at June 30, 2022, was approximately $1,629,553.

Contingencies
Federal and State Government Programs
The City participates in several federal and state grant programs. These programs are subject to audit and review by the grantor pursuant to grant provisions. Expenditures may be disallowed by the granting agencies that cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
counsel is unable to estimate at this time the probability of favorable or unfavorable outcomes. Therefore, no provision has been made in the financial statements for a loss contingency.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(45)
NOTE 12 PRIOR PERIOD ADJUSTMENT
The City determined that certain transactions were recorded incorrectly in a prior year.

The impact of the restatements on the fund balances and net position as previously reported is presented below:

Government-Wide Governmental Fund
Statements Statements
Governmental
Activities COPS
Fund Balance / Net Position - June 30, 2021 37,870,666 $ (914) $ Adjustments:

To recognize revenues earned in prior years, but not recorded until the current year. 233,434 233,434 Restated Fund Balance / Net Position - June 30, 2022 38,104,100 $ 232,520 $ (46)

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2022
(47)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes 2,550,654 $ 2,550,654 2,743,476 $ 192,822 $
Licenses and Permits 315,085 315,085 245,583 (69,502)
Fines and Forfeitures 52,482 52,482 44,267 (8,215)
Use of Money and Property 19,720 19,720 19,544 (176)
Intergovernmental Revenues 3,805,274 3,805,274 725,993 (3,079,281) Charges for Services 766,095 766,095 3,259,696 2,493,601 Contributions 6,500 6,500 6,851 351
Other Revenues 63,773 63,773 78,561 14,788
Total Revenues 7,579,583 7,579,583 7,123,971 (455,612)

EXPENDITURES
Current:

General Government 789,553 789,553 637,204 152,349
Public Safety 4,106,455 4,106,455 3,618,590 487,865
Public Works 865,296 865,296 699,807 165,489
Community Development 566,130 566,130 458,829 107,301
Debt Service:

Principal 553,708 553,708 125,121 428,587
Interest and Other Charges 6,750 6,750 38,268 (31,518)
Capital Outlay 4,981,188 6,291,606 1,453,375 4,838,231
Total Expenditures 11,869,080 13,179,498 7,031,194 6,148,304

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)
EXPENDITURES (5,599,915) (4,289,497) 92,777 5,692,692

OTHER FINANCING SOURCES
Debt Proceeds 2,000,000 2,000,000 - (2,000,000)
Issuance of Leases - - 4,414 4,414
Transfers In 3,692,177 3,692,177 3,271,486 (420,691)
Total Other Financing
Sources (Uses) 5,692,177 5,692,177 3,275,900 (420,691)
NET CHANGE IN FUND BALANCES 92,262 1,402,680 3,368,677 5,272,001 Fund Balances - Beginning of Year 715,599 715,599 715,599 - FUND BALANCES - END OF YEAR $ 807,861 2,118,279 $ 4,084,276 $ 3,276,415 $

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(48)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental Revenues 1,600,000 $ 1,600,000 $ 2,105,508 $ 505,508 $ Total Revenues 1,600,000 1,600,000 2,105,508 505,508

EXCESS OF REVENUES OVER
EXPENDITURES 1,600,000 1,600,000 2,105,508 505,508

OTHER FINANCING USES
Transfers Out (1,300,224) (1,300,224) (1,965,385) (665,161) Total Other Financing Uses (1,300,224) (1,300,224) (1,965,385) (665,161) NET CHANGE IN FUND BALANCES 299,776 299,776 140,123 (159,653) Fund Balances - Beginning of Year (722,442) (722,442) (722,442) - FUND BALANCES - END OF YEAR $ (422,666) (422,666) $ (582,319) $ (159,653) $

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(49)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental Revenues 376,511 $ 376,511 $ 296,927 $ (79,584) $ Total Revenues 376,511 376,511 296,927 (79,584)

EXCESS OF REVENUES OVER
EXPENDITURES 376,511 376,511 296,927 (79,584)

OTHER FINANCING USES
Transfers Out (376,511) (376,511) - 376,511
Total Other Financing Uses (376,511) (376,511) - 376,511 NET CHANGE IN FUND BALANCES - - 296,927 296,927
Fund Balances - Beginning of Year 777,311 777,311 777,311 - FUND BALANCES - END OF YEAR $ 777,311 777,311 $ 1,074,238 $ 296,927 $

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(50)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Licenses and Permits 1,026,496 $ 1,026,496 $ 763,217 $ $ (263,279) Use of Money and Property 2,000 2,000 - (2,000)
Total Revenues 1,028,496 1,028,496 763,217 (265,279)

EXCESS OF REVENUES
OVER EXPENDITURES 1,028,496 1,028,496 763,217 (265,279)

OTHER FINANCING USES
Transfers Out (1,028,496) (1,028,496) 858,097 (170,399) Total Other Financing Uses (1,028,496) (1,028,496) 858,097 (170,399) NET CHANGE IN FUND BALANCES - - 592,818 592,818
Fund Balances - Beginning of Year 1,248,277 1,248,277 1,248,277 - FUND BALANCES - END OF YEAR $ 1,248,277 1,248,277 $ 1,841,095 $ 592,818 $

CITY OF MCFARLAND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(51)
NOTE 1 APPROPRIATED BUDGET AND BUDGETARY CONTROL
The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year for the General and Special Revenue funds. The budgets are presented for reporting purposes on a budgetary basis consistent with accounting principles generally accepted in the United States of America. The McFarland Improvement Authority does not adopt a budget.

The appropriated budget is prepared by fund, function, and department. The City Manager may make transfers of appropriations within a department and make transfers of appropriations between departments as long as there is no increase or decrease to the overall budget. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the function level. Unexpended or unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are The City Council adopts budgets for the Enterprise funds. However, all Proprietary fund measurement focus. As a result, budget comparisons are impractical. Additionally, the City is not legally mandated to report the results of operations for these Proprietary fund types on a budget comparison basis; therefore, budgetary data related to these funds has not been presented.

The City did not present a budgetary schedule for the CalHOME Fund or the Miscellaneous Grants Fund since these funds did not report a budget this year. (52)

COMBINING FUND STATEMENTS

CITY OF MCFARLAND

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(53)
Road
Lighting and Maintenance
CDBG HOME Landscape COPS and Rehab Total
ASSETS
Cash and Investments - $ - $ 243,882 $ - $ 513,027 $ 756,909 $ Receivables:

Accounts - 3,383 - - - 3,383
Intergovernmental 410,338 - - - 23,701 434,039
Loans Receivable - 709,906 - - - 709,906
Total Assets 410,338 $ 713,289 $ 243,882 $ - $ 536,728 $ 1,904,237 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable - $ - $ 1,165 $ - $ - $ 1,165 $
Accrued Liabilities - - 889 - - 889
Due to Other Funds 424,226 88,840 789 914 - 514,769
Unearned Revenue - - - - 416 416
Total Liabilities 424,226 88,840 2,843 914 416 517,239

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenue - 709,906 - - - 709,906

FUND BALANCES
Restricted - - 241,039 - 536,312 777,351
Unassigned (13,888) - (85,457) - (914) (100,259)
Total Fund Balances (13,888) 241,039 (85,457) 536,312 (914) 677,092 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 410,338 $ 713,289 $ 243,882 $ - $ 536,728 $ 1,904,237 $ Special Revenue

CITY OF MCFARLAND

COMBINING STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(54)
Road
Lighting and Maintenance
CDBG HOME Landscape COPS and Rehab Total

REVENUES
Taxes - $ - $ 139,033 $ - $ 306,549 $ 445,582 $
Use of Money and Property - - 30 - - 30
Intergovernmental Revenues 402,547 - - 511,193 - 913,740 Total Revenues 402,547 - 139,063 511,193 306,549 1,359,352

EXPENDITURES
Current:

Public Works - - 152,196 - - 152,196
Capital Outlay - 401,973 - - - 401,973
Total Expenditures 401,973 - 152,196 - - 554,169

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - 574 511,193 (13,133) 306,549 805,183

OTHER FINANCING USES
Transfers Out - - - (744,627) (409,707) (1,154,334)
Total Other Financing Uses - - - (744,627) (409,707) (1,154,334) NET CHANGE IN FUND BALANCES - 574 (13,133) (233,434) (103,158) (349,151) Fund Balances - Beginning
of Year as Restated (14,462) 254,172 (85,457) 232,520 639,470 1,026,243 FUND BALANCES - END OF YEAR $ (85,457) (13,888) $ 241,039 $ (914) $ 536,312 $ 677,092 $ Special Revenue

CITY OF MCFARLAND

SINGLE AUDIT REPORT
YEAR ENDED JUNE 30, 2022

CITY OF MCFARLAND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 1
INDEP

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER

COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 7
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 8
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 10
(1)
INDEP

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable City Council
City of McFarland
McFarland, California
We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of McFarland (the City) as of and for the year ended June 30, 2022, and the related notes to our report thereon dated June 8, 2023.

Report on Internal Control Over Financial Reporting
internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-001, 2022-002, 2022-003, 2022-004 and 2022-005 that we consider to be material weaknesses.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(2)
Honorable City Council
City of McFarland
Report on Compliance and Other Matters
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City of
Government Auditing Standards requires the auditor to perform limited procedures on the City of o the findings identified in our audit and described in the accompanying other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the accordance with Government Auditing Standards
compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Roseville, California
Ju , 2023
(3)
INDEP

PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM

GUIDANCE
Honorable City Council
City of McFarland
McFarland, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of McFarland, California's (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under Audit of Compliance section of our report.

We are required to be independent of the City of McFarland and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

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Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City
whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, compliance
requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

Obtain an understanding of the City
order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

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Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2022-006. Our opinion on each major federal program is not modified with respect to this matter.

Government Auditing Standards requires the auditor to perform limited procedures on the City response to the noncompliance finding identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider to be a significant deficiency.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2022- 006, to be a significant deficiency.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. (6)
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City of McFarland
Government Auditing Standards requires the auditor to perform limited procedures on the City response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City e was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of McFarland as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively sued our report thereon, dated
June 8, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Roseville, California
July 11, 2023

CITY OF MCFARLAND

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards. (7)
Federal
Assistance Pass-Through Total Passed
Listing Entity Identifying Federal Through to
Number Number Expenditures Subrecipients
U.S. Department of Agriculture
Direct Programs:

Community Facilities Direct Loan and Grant Program 10.766 $ 664,188 $ - Subtotal - Community Facilities Loans and Grant Cluster 664,188 - Total U.S. Department of Agriculture 664,188 -
U.S. Department of Housing and Urban Development
Passed-through State of California Department of Housing and Community Development:

COVID-19 Community Development
Block Grants/Entitlement Grants (CDBG) 14.228 20-CDBG-CV2-3-00001 $ 401,973 $ - Subtotal - CDBG Entitlement Grants Cluster 401,973 -
HOME Investment Partnership Program (Outstanding Loans) 14.239 $ 709,906 $ - Total U.S. Department of Housing and Urban Development 1,111,879 - U.S. Department of Justice
Direct Programs:

Public Safety Partnership and Community Policing Grants 16.710 779,696 - Total U.S. Department of Justice 779,696 -
U.S. Department of Transportation
Passed-through the State Department of Transportation:

Highway Planning and Construction 20.205 CMAQ-8405 234,022 - Subtotal - Highway Planning and Construction Cluster 234,022 - Total U.S. Department of Transportation 234,022 -
U.S. Department of Treasury
Passed-through the State Department of Finance
COVID-19 Coronavirus
State and Local Fiscal Recovery Funds 21.027 345,295 -
Subtotal - Assistance Listing Number 21.027 345,295 -
Total U.S. Department of Treasury - 345,295
Total Expenditures of Federal Awards $ 3,135,080 $ -
Federal Grantor/Pass-through Grantor/Program/Cluster Title

CITY OF MCFARLAND

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(8)
NOTE 1 BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal awards programs of the City of McFarland (the City) for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

NOTE 3 ASSISTANCE LISTING NUMBERS
The program titles and Assistance Listing Numbers were obtained from the federal or passthrough grantor.

NOTE 4 INDIRECT COST RATE
The City did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414.

When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

CITY OF MCFARLAND

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(9)
NOTE 6 LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
The City offers property rehabilitation and first-time home buyer loans to eligible individuals as part of its HOME program. The loans have continuing compliance requirements and therefore the outstanding balances are reflected on the Schedule. No new loans were issued during the fiscal year ended June 30, 2022.

Loans with
Continuing
Assistance Outstanding Compliance
Listing Number Federal Program Loans Requirements

10.766 Community Facilities Direct Loan and Grant Program 664,188 $ 664,188 $

14.239 Home Investment Partnership Program 709,906 709,906 NOTE 7 COPS UNIVERSAL HIRING GRANT PRIOR YEAR EXPENDITURES The City had federal expenditures in the amount of $268,503 for the COPS Universal Hiring Grant that were not included on the SEFA in a prior year. These amounts have been reported in the current year SEFA in addition to the $511,193 of current year expenditures.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(10)
Financial Statements
Unmodified

2. Internal control over financial reporting:

Material weakness(es) identified? x yes no
Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? x yes none reported compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? x yes no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster

21.027 COVID -19 Coronavirus State and Local Fiscal
Recovery Funds

14.228 COVID -19 Community Development Block
Grants

16.710 Public Safety Partnership and Community
Policing Grants
Dollar threshold used to distinguish between
Type A and Type B programs: $ 750,000
Auditee qualified as low-risk auditee? yes x no

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(11)
Year-End Closing and Account Reconciliations
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The City did not have adequate design of internal controls over significant processes such as performing monthly reconciliations of accounts, including cash, receivables and long-term liabilities.

Furthermore, this year's closing process was delayed because some important procedures were not performed on time while others were performed too early in the process. The results were delays in producing closing entries, trial balances, schedules, reconciliations, account analyses, and other financial reports needed by management and the auditors.

Criteria or Specific Requirement: A benefit of monthly reconciliations is that errors do not accumulate but can be identified and attributed to a particular period, which makes it easier to perform future reconciliations.

Effect: Certain accounts were misstated at year-end, requiring material adjustments.

Cause: The City did not allocate sufficient resources to the accounting function.

Repeat Finding: This is a repeat finding from the prior year (2021-001).

Recommendation: We recommend the City establish procedures for reconciling the general ledger accounts for cash, receivables, accounts payable, to supporting documentation monthly. A benefit of monthly reconciliations is that errors do not accumulate but can be identified and attributed to a particular period, which makes it easier to perform future reconciliations.

We further recommend that the finance department prepare a year-end closing schedule and include all tasks that are necessary to close the year-end. Such a list should include, at a minimum, the following:
a list of year-end tasks, due date of each task, and the responsible employee and management reviewer of each task.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(12)
Cash Reconciliations
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During our audit, we noted the cash reconciliations provided were completed much later than periods being reconciled.

During much of the year, the operating bank account reconciliations appeared to be not completed at the end of each month. Timely preparation of complete and accurate bank reconciliations is a key to maintaining adequate control over both cash receipts and disbursements.

Criteria or Specific Requirement: Year-end and monthly reconciliations and adjustments will ensure meaningful and accurate financial statements.

Effect: Not reconciling the accounts on a monthly basis means that errors or other problems might not be recognized and resolved on a timely basis.

Cause: Management did not perform the cash reconciliations on a monthly basis to confirm the amounts agreed to the general ledger during the fiscal year.

Repeat Finding: This is a repeat finding from the prior year (2021-002).

Recommendation: We recommend that the bank reconciliations be reviewed for accuracy and completeness on a timely basis by the finance department. The review should include tests of mechanical accuracy and tracing of items on the reconciliation to the relevant source documents. The composition of unreconciled differences should be determined and followed up on, and any journal entries deemed necessary as a result be recorded.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(13)
Accounts Receivable
Type of Finding: Material Weakness
Condition: Accounts receivable and revenue were understated by $2,817,488 in the General Fund for conditional use permits and engineering fees. Accounts receivable and revenue were also understated by $23,701 in the road fund for road rehabilitation funding.

Criteria or specific requirement: Accounts receivable and the associated revenues should be recorded in the period they are determined to be recognizable in accordance with generally accepted accounting principles (GAAP).

Effect: The following are misstatements detected as a result of audit procedures that are within the Accounts receivable and revenues were understated by $2,817,448 in the General Fund for conditions use permits and engineering fees.

Accounts receivable and revenues were understated by $23,701 in the Road Fund for road rehabilitation funding.

Cause: Certain accruals were not identified and captured as part of the year end close process.

Repeat Finding: This is not a repeat finding.

Recommendation: The City should provide additional training to departments and staff on revenue recognition in accordance with GAAP and include additional procedures during the year end closing process to capture all year end accruals.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(14)
Vacation Liability
Type of Finding: Material Weakness
Condition: During our audit we noted the City had recorded accrued vacation liabilities in the General Fund overstating the liability for accrued salaries and benefits in the fund statements.

Criteria or specific requirement: Transactions should only be recorded in the General Fund on the modified accrual basis. As such long term liabilities for accrued vacation should only be recorded in the government wide statements on the full accrual basis.

Effect: Accrued salaries and benefits was overstated by $54,229 in the General Fund.

Cause: The City treated accrued vacation like a short term liability rather than a long term liability and recorded it in the general fund.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City only record accrued vacation liabilities in the government wide financial statements as part of their year end GASB conversion entries.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(15)
SEFA Preparation
Type of Finding: Material Weakness
Condition: The City made adjustments to the SEFA for the following program: ALN #16.710 Public Safety Partnership and Community Policing Grants.

Criteria or specific requirement: The Auditee's responsibility per the Uniform Guidance, Section 200.508 Part B, is to "prepare appropriate financial statements, including the Schedule of Expenditures of Awards". This includes determining the correct amount of expenditures that need to be reported for the Schedule of Expenditures of Federal Awards.

The SEFA, while not part of the Basic Financial Statements, is audited in relation to the basic financial statements, in accordance with the requirements of the Uniform Guidance. The Uniform Guidance requires auditors to determine major programs and perform risk assessments based on information reported on the SEFA.

Effect: During our review of the preliminary SEFA and testing over the major programs, we noted the City omitted the entire Public Safety Partnership and Community Policing Grants Program from the SEFA which amounted to $511,193 in federal expenditures.

Cause: The city has had staffing issues and high turnover in grant personnel resulting in the program being excluded from the initial SEFA provided.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City provides additional training to the departments to understand their grant reporting requirements.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The City will provide additional training to individuals responsible for grant reporting requirements.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(16)
ms
Federal agency: U.S. Department of Treasury
Federal program title: Covid -19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027
Federal Award Identification Number and Year: QCFVLPC1QNF1, FY 2021-2022 Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2021, to June 30, 2022
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Condition: We noted three vendors received disbursements of Federal Funding without going through the bid process. In addition, debarment checks for two vendors were not performed.

Criteria or Specific Requirement: Recipients may use award funds to enter into contracts with vendors who are not debarred to procure goods and services necessary to implement eligible purposes which are outlined by Treasury's Interim Final Rule.

Effect: Without checking debarment before engaging services, the City could have entered into an agreement with a vendor that was disbarred from receiving federal funding.

Context: Two of the four items tested did not have debarment procedures performed prior to the commencement of work. In addition the bid process wasn't followed for three of the items tested because expenditures had been previously approved within the City budget.

Cause: State and Local Fiscal Recovery Funds related to the coronavirus relief funding was received in advance as emergency funding. The City did not follow all required compliance in using the funding in response to the emergency.

Repeat Finding: This is not a repeat finding.

Recommendation: CLA recommends that City implement procedures to ensure that federal guidance is followed relating to procurement and debarment.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The City will provide additional training to individuals responsible for procurement and related debarment requirements.

CITY OF MCFARLAND

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2022

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF MCFARLAND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

FINANCIAL SECTION

BASIC FINANCIAL STATEMENTS
GOVERNMENTAL ACTIVITIES 9

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES,
ACTIVITIES 12

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
NOTES TO BASIC FINANCIAL STATEMENTS 19

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
REVENUE FUND 48
REVENUE FUND 49

CITY OF MCFARLAND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
MAJOR SPECIAL REVENUE FUND 50
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 51

COMBINING FUND STATEMENTS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

FINANCIAL SECTION
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INDEP
Honorable Mayor and Members of the City Council
City of McFarland
McFarland, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of McFarland (the City), as of and for the year ended June 30, 2022, and the related notes to the financial 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, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) 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 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 requirements 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.

Emphasis of Matter
Restatements of Fund Balance and Net Position
was restated for the correction of errors in prior year financial statements. Our opinion is not modified with respect to this matter.

Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective July 1, 2021, the City of McFarland adopted new accounting guidance for leases. The guidance requires lessees to recognize a right-touse lease asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months.

Our opinions are not modified with respect to this matter.

Honorable Mayor and Members of the City Council
City of McFarland
(2)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the 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 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 as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 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 GAAS 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 GAAS 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 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, 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.

Honorable Mayor and Members of the City Council
City of McFarland
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for 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. alysis, that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that statements. The combining nonmajor governmental fund
financial statements are presented for purposes of additional analysis and are 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 or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor governmental fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 8, 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 integral part of an audit performed in accordance with Government Auditing Standards in considering CliftonLarsonAllen LLP
Roseville, California
June 8, 2023
(4)

BASIC FINANCIAL STATEMENTS

CITY OF MCFARLAND
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(5)
Primary Government
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and Investments 5,257,725 $ 9,199,133 $ 14,456,858 $ Cash with Fiscal Agents 3,626,961 754,651 4,381,612
Receivables:

Accounts 81,587 905,682 987,269
Intergovernmental 4,029,888 3,979 4,033,867
Interest - 1,816 1,816
Leases 28,313 218,195 246,508
Other Assets 4,129 5,097 9,226
Internal Balances (120,277) 120,277 -
Loans Receivable 3,626,013 - 3,626,013
Land Held For Resale 446,593 - 446,593
Capital Assets:

Nondepreciable/Nonamortizable 3,299,731 1,280,063 4,579,794 Depreciable, Net 28,354,461 15,552,759 43,907,220
Right-to-Use Assets, Net 106,302 - 106,302
Total Assets 48,741,426 28,041,652 76,783,078

LIABILITIES
Accounts Payable 300,748 343,317 644,065
Accrued Liabilities 35,047 16,091 51,138
Interest Payable 54,717 69,303 124,020
Deposits Payable 151,397 18,539 169,936
Unearned Revenue 1,667,860 12,769 1,680,629
Long-Term Liabilities:

Due Within One Year 293,729 246,576 540,305
Due in More than One Year 5,188,143 5,525,000 10,713,143 Total Liabilities 7,691,641 6,231,595 13,923,236

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases 27,903 214,134 242,037

NET POSITION
Net Investment in Capital Assets 29,594,503 11,117,822 40,712,325 Restricted for:

General 112,365 - 112,365
Streets and Roads 1,843,176 - 1,843,176
Community Development 5,788,156 - 5,788,156
Debt Service 217,583 754,651 972,234
Unrestricted 3,466,099 9,723,450 13,189,549
Total Net Position 41,021,882 $ 21,595,923 $ 62,617,805 $

CITY OF MCFARLAND
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(6)
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
Fees, Fines, and Operating Capital BusinessCharges for Grants and Grants and Governmental Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government:

Governmental Activities:

General Government 1,464,274 $ 3,067,553 $ - $ - $ 1,603,279 $ - $ 1,603,279 $ Public Safety 3,759,778 196,586 672,478 - (2,890,714) - (2,890,714) Public Works 1,696,956 61,588 1,348,410 409,876 122,918 - 122,918 Community Development 611,613 992,418 154,832 402,547 938,184 - 938,184 Interest on Long-Term Debt 193,709 - - - (193,709) - (193,709) Total Governmental Activities 7,726,330 4,318,145 2,175,720 812,423 (420,042) - (420,042) Business-Type Activities:

Sewer 1,606,175 2,023,238 - - - 417,063 417,063
Refuse 1,441,189 1,407,955 47,891 - - 14,657 14,657
Water 1,747,087 2,162,454 5,000 - - 420,367 420,367
Public Transportation 126,980 - 53,742 - - (73,238) (73,238) Total Business-Type Activities 4,921,431 5,593,647 106,633 - - 778,849 778,849 Total Primary Government 12,647,761 $ 9,911,792 $ 2,282,353 $ 812,423 $ (420,042) 778,849 358,807

GENERAL REVENUES AND

TRANSFERS
General Revenues:

Taxes:

Property Taxes 928,467 - 928,467
Sales and Use Taxes 524,930 - 524,930
Franchise Taxes 203,162 - 203,162
Intergovernmental, Unrestricted:

Motor Vehicle In-Lieu Tax 1,532,499 - 1,532,499
Interest and Investment Earnings 241 2,964 3,205
Lease Revenue 13,951 61,181 75,132
Settlements - 5,895,859 5,895,859
Miscellaneous 86,819 - 86,819
Transfers 47,755 (47,755) -
Total General Revenues and Transfers 3,337,824 5,912,249 9,250,073 CHANGE IN NET POSITION 6,691,098 2,917,782 9,608,880
Net Position - Beginning of Year as Restated 38,104,100 14,904,825 53,008,925 NET POSITION - END OF YEAR $ 21,595,923 41,021,882 $ 62,617,805 $ Program Revenues

CITY OF MCFARLAND
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(7)
ASSETS
Cash and Investments
Cash with Fiscal Agent
Receivables:

Accounts
Intergovernmental
Leases
Prepaid Items
Due from Other Funds
Loans Receivable
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Due to Other Funds
Advances from Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Related to Leases
Total Deferred Inflows of Resources

FUND BALANCES
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
General
Fund TDA-LTF Gas Tax CalHOME
$ 140,123 688,635 $ 1,074,238 $ 266,048 $
- - - -
- 78,204 - -
573,906 3,019,355 - -
- 28,313 - -
- 4,129 - -
- 674,252 - -
- - - 2,916,107
- 446,593 - -
$ 714,029 4,939,481 $ 1,074,238 $ 3,182,155 $
$ - 245,496 $ - $ - $
- 34,158 - -
- 151,397 - -
722,442 124,043 - -
- 114,211 - -
- 157,997 - -
722,442 827,302 - -
573,906 - - 2,916,107
- 27,903 - -
573,906 27,903 - 2,916,107
- 450,722 - -
- - 1,074,238 266,048
- 2,757,119 - -
876,435 - (582,319) -
4,084,276 1,074,238 (582,319) 266,048
$ 714,029 4,939,481 $ 1,074,238 $ 3,182,155 $

CITY OF MCFARLAND
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(8)
ASSETS
Cash and Investments
Cash with Fiscal Agent
Receivables:

Accounts
Intergovernmental
Leases
Prepaid Items
Due from Other Funds
Loans Receivable
Land Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Deposits Payable
Due to Other Funds
Advances from Other Funds
Unearned Revenue
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Related to Leases
Total Deferred Inflows of Resources

FUND BALANCES
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
McFarland Other
Development Miscellaneous Improvement Governmental
Impact Grants Authority Funds Total
$ 1,700,219 631,553 $ - $ 756,909 $ 5,257,725 $
- - 3,626,961 - 3,626,961
- - - 3,383 81,587
- 2,588 - 434,039 4,029,888
- - - - 28,313
- - - - 4,129
- 1,209,542 - - 1,883,794
- - - 709,906 3,626,013
- - - - 446,593
$ 1,702,807 1,841,095 $ 3,626,961 $ 1,904,237 $ 18,985,003 $ $ 54,087 - $ - $ 1,165 $ 300,748 $
- - - 889 35,047
- - - - 151,397
- 26,908 501,698 514,769 1,889,860
- - - - 114,211
- 1,509,447 - 416 1,667,860
- 1,590,442 501,698 517,239 4,159,123
- - - 709,906 4,199,919
- - - - 27,903
- - - 709,906 4,227,822
- - - - 450,722
112,365 1,841,095 3,125,263 777,351 7,196,360
- - - - 2,757,119
- - - 193,857 (100,259)
112,365 1,841,095 3,125,263 677,092 10,598,058
$ 1,702,807 1,841,095 $ 3,626,961 $ 1,904,237 $ 18,985,003 $

CITY OF MCFARLAND

GOVERNMENT-WIDE STATEMENT OF NET
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(9)
Fund Balance - Total Governmental Funds 10,598,058 $
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds balance sheet. 31,760,494 e to pay for current period expenditures and
therefore are not reported in the governmental funds balance sheet. 4,199,919 Interest on long-term debt is recognized as it accrues, regardless of when it is due. (54,717) Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Bonds Payable (Net of Unamortized Premium) (4,541,487)
Loans Payable (750,804)
Notes Payable (26,835)
Lease Payable (108,517)
Compensated Absences (54,229)
Net Position of Governmental Activities 41,021,882 $

CITY OF MCFARLAND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(10)

REVENUES
Taxes
Licenses and Permits
Fines and Forfeitures
Use of Money and Property
Intergovernmental Revenues
Charges for Services
Contributions
Other Revenues
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Debt Service:

Principal
Interest and Fiscal Charges
Capital Outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Leases
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balance - Beginning of Year

FUND BALANCES - END OF YEAR
General
Fund TDA-LTF Gas Tax CalHOME
$ - 2,743,476 $ - $ - $
- 245,583 - -
- 44,267 - -
- 19,544 - -
2,105,508 725,993 296,927 -
- 3,259,696 - -
- 6,851 - -
- 78,561 - 55,000
2,105,508 7,123,971 296,927 55,000
- 637,204 - -
- 3,618,590 - -
- 699,807 - -
- 458,829 - -
- 125,121 - -
- 38,268 - -
- 1,453,375 - -
- 7,031,194 - -
2,105,508 92,777 296,927 55,000
- 3,271,486 - -
- - (1,965,385) -
- 4,414 - -
3,275,900 - (1,965,385) -
140,123 3,368,677 296,927 55,000
715,599 777,311 (722,442) 211,048
$ (582,319) 4,084,276 $ 1,074,238 $ 266,048 $

CITY OF MCFARLAND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(11)

REVENUES
Taxes
Licenses and Permits
Fines and Forfeitures
Use of Money and Property
Intergovernmental Revenues
Charges for Services
Contributions
Other Revenues
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Public Works
Community Development
Debt Service:

Principal
Interest and Fiscal Charges
Capital Outlay
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Leases
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balance - Beginning of Year

FUND BALANCES - END OF YEAR
McFarland Other
Development Miscellaneous Improvement Governmental
Impact Grants Authority Funds Total
$ - - $ - $ 445,582 $ 3,189,058 $
- 763,217 - - 1,008,800
- - - - 44,267
- - - 30 19,574
470,030 - - 913,740 4,512,198
- - - - 3,259,696
- - - - 6,851
- - 1,407 - 134,968
470,030 763,217 1,407 1,359,352 12,175,412
495,675 - - - 1,132,879
- - - - 3,618,590
- - - 152,196 852,003
- - - - 458,829
- - 105,000 - 230,121
- - 167,300 - 205,568
- - - 401,973 1,855,348
495,675 - 272,300 554,169 8,353,338
763,217 (25,645) 805,183 (270,893) 3,822,074
66,387 - - - 3,337,873
- (170,399) - (1,154,334) (3,290,118)
- - - - 4,414
66,387 (170,399) - 52,169 (1,154,334)
40,742 592,818 (270,893) 3,874,243 (349,151)
71,623 1,248,277 3,396,156 1,026,243 6,723,815
$ 112,365 1,841,095 $ 3,125,263 $ 677,092 $ 10,598,058 $

CITY OF MCFARLAND

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES, AND YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(12)
Net Change to Fund Balance - Total Governmental Funds 3,874,243 $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Expenditures for Capital Outlay 1,855,348
Less: Current Year Depreciation (1,351,580)
Less: Current Year Amortization (81,763)
Less: Current Year Adjustments (18,370)
Some revenues reported in the statement of activities will not be collected for several and therefore are not reported as revenues in the governmental funds. (1,579,055) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. Also, governmental funds report the effect of premiums when debt is first issued; however, the amounts are deferred and amortized in the government-wide financial statements.

Principal Payments for Bonds, and Notes 150,573
Principal Payments for Leases 79,548
Proceeds from Issuance of Leases (4,414)
Change in Accrued Interest on Long-term Debt 3,197
Amortization of Premium 11,859
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in the governmental funds.

Change in Compensated Absences (21,804)
Change in Net Position of Governmental Activities 2,917,782 $

CITY OF MCFARLAND

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(13)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total
ASSETS
Current Assets:

Cash and Investments 1,167,918 $ 66,427 $ 7,865,696 $ 99,092 $ 9,199,133 $ Cash with Fiscal Agent - Restricted 509,645 - 245,006 - 754,651 Receivables:

Accounts 313,161 283,714 308,807 - 905,682
Intergovernmental 3,979 - - - 3,979
Interest - - 1,816 - 1,816
Leases 218,195 - - - 218,195
Due from Other Funds 4,419 4,114 1,360 604 10,497
Other Assets - - 5,097 - 5,097
Total Current Assets 2,217,317 354,255 8,427,782 99,696 11,099,050 Noncurrent Assets:

Advances to Other Funds 114,211 - - - 114,211
Capital Assets:

Nondepreciable:

Land 1,120,000 - 160,063 - 1,280,063
Depreciable:

Buildings, Equipment and
Infrastructure 14,981,845 309,677 12,481,930 650,896 28,424,348 Accumulated Depreciation (5,781,067) (308,646) (6,300,299) (481,577) (12,871,589) Total Noncurrent Assets 10,434,989 1,031 6,341,694 169,319 16,947,033 Total Assets 12,652,306 355,286 14,769,476 269,015 28,046,083

LIABILITIES
Current Liabilities:

Accounts Payable 51,124 194,882 82,528 14,783 343,317
Accrued Liabilities 7,479 1,812 5,199 1,601 16,091
Interest Payable 43,891 - 25,412 - 69,303
Due to Other Funds - - - 4,431 4,431
Deposits from Others - - 18,539 - 18,539
Unearned Revenue - - - 12,769 12,769
Compensated Absences 27,029 14,076 14,989 482 56,576
Bonds Payable 127,145 - 62,855 - 190,000
Total Current Liabilities 256,668 210,770 209,522 34,066 711,026 Noncurrent Liabilities:

Bonds Payable 3,681,287 - 1,843,713 - 5,525,000
Total Liabilities 3,937,955 210,770 2,053,235 34,066 6,236,026

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - Leases 214,134 - - - 214,134

NET POSITION
Net Investment in Capital Assets 6,512,346 1,031 4,435,126 169,319 11,117,822 Restricted for Debt Service 509,645 - 245,006 - 754,651 Unrestricted 1,478,226 143,485 8,036,109 65,630 9,723,450 Total Net Position 8,500,217 $ 144,516 $ 12,716,241 $ 234,949 $ 21,595,923 $

CITY OF MCFARLAND

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(14)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total

OPERATING REVENUES
Charges for Services 2,023,238 $ 1,407,955 $ 2,162,454 $ - $ 5,593,647 $

OPERATING EXPENSES
Salaries and Employee Benefits 604,288 123,473 500,881 63,371 1,292,013 Services and Supplies 260,642 1,313,005 303,713 29,707 1,907,067 Utilities 135,914 - 375,565 - 511,479
Depreciation 422,349 4,711 473,080 33,902 934,042
Total Operating Expenses 1,423,193 1,441,189 1,653,239 126,980 4,644,601 OPERATING INCOME (LOSS) 600,045 509,215 (33,234) 949,046 (126,980)

NONOPERATING REVENUES (EXPENSES)
Grants - 47,891 5,000 53,742 106,633
Lease Revenue 61,181 - - - 61,181
Interest Income 2,520 86 358 - 2,964
Interest Expense - (182,982) - (93,848) (276,830)
Settlements - - 5,895,859 - 5,895,859
Total Nonoperating
Revenues (Expenses) 47,977 (119,281) 5,807,369 53,742 5,789,807 INCOME (LOSS) BEFORE TRANSFERS 14,743 480,764 6,316,584 6,738,853 (73,238) TRANSFERS IN - 59,895 - 125,964 185,859
TRANSFERS OUT (83,877) (11,475) (134,765) (3,497) (233,614) CHANGE IN NET POSITION 3,268 456,782 6,181,819 49,229 6,691,098 Net Position - Beginning of Year 8,043,435 141,248 6,534,422 185,720 14,904,825 NET POSITION - END OF YEAR $ 144,516 8,500,217 $ 12,716,241 $ 234,949 $ 21,595,923 $

CITY OF MCFARLAND

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(15)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Receipts from Customers 1,973,587 $ 1,339,007 $ 2,099,881 $ 12,728 $ 5,425,203 $ Payments to Suppliers (397,137) (1,229,971) (660,433) (25,450) (2,312,991) Payments to Employees (602,383) (117,959) (506,918) (64,375) (1,291,635) Net Cash Provided (Used) by
Operating Activities 974,067 (8,923) 932,530 (77,097) 1,820,577

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Grant Proceeds - 47,891 5,000 53,742 106,633
Loans from Other Funds 44,657 - - 44,657
Nonoperating Receipts 61,181 - - - 61,181
Transfers from Other Funds 59,895 - - 125,964 185,859
Transfers to Other Funds (83,877) (11,475) (134,765) (3,497) (233,614) Settlements - - 5,895,859 5,895,859
Net Cash Provided (Used) by
Noncapital Financing Activities 81,856 36,416 5,766,094 176,209 6,060,575

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Payments Related to the Acquisition of
Capital Assets (108,698) - - (20) (108,718)
Principal Repayments Related to Capital
Purposes (123,949) - (61,051) - (185,000)
Interest Repayments Related to Capital
Purposes (190,685) - (93,848) - (284,533)
Net Cash Used by Capital and
Related Financing Activities (423,332) - (154,899) (20) (578,251)

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Earnings 2,520 86 358 - 2,964
Net Cash Provided by Investing
Activities 2,520 86 358 - 2,964

NET INCREASE IN CASH AND CASH
EQUIVALENTS 27,579 635,111 6,544,083 99,092 7,305,865
Cash and Cash Equivalents - Beginning
of Year 1,042,452 38,848 1,566,619 - 2,647,919

CASH AND CASH EQUIVALENTS -
END OF YEAR $ 66,427 1,677,563 $ 8,110,702 $ 99,092 $ 9,953,784 $ Cash and Investments 1,167,918 66,427 7,865,696 99,092 9,199,133 Cash with Fiscal Agent - Restricted 509,645 -- 245,006 -- 754,651

CASH AND CASH EQUIVALENTS -
PER STATEMENT OF NET POSITION $ 66,427 1,677,563 $ 8,110,702 $ 99,092 $ 9,953,784 $

CITY OF MCFARLAND

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Basic Financial Statements.
(16)
Enterprise Funds
Nonmajor
Public
Sewer Refuse Water Transportation Total

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

OPERATING ACTIVITIES
Operating Income (Loss) 600,045 $ (33,234) $ 509,215 $ (126,980) $ 949,046 $ Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:

Depreciation 422,349 4,711 473,080 33,902 934,042
Increase in:

Accounts Receivable (45,590) (68,948) (67,255) - (181,793) Lease Receivable (218,195) - - - (218,195)
Increase (Decrease) in:

Accounts Payable (581) 83,034 18,845 4,257 105,555
Accrued Liabilities (7,904) (970) (10,534) (468) (19,876) Deposits - - 4,682 - 4,682
Deferred Inflows - Lease Related 214,134 - - - 214,134
Unearned Revenues - - - 12,728 12,728
Compensated Absences 9,809 6,484 4,497 (536) 20,254
Net Cash Provided (Used) by
Operating Activities 974,067 $ (8,923) $ 932,530 $ (77,097) $ 1,820,577 $

CITY OF MCFARLAND

STATEMENT OF NET POSITION

FIDUCIARY FUND
JUNE 30, 2022
(17)
Private
Purpose
Trust Fund
Successor
Agency
ASSETS
Cash and Investments 6,665 $
Total Assets 6,665

NET POSITION
Restricted for Successor Agency 6,665
Total Net Position 6,665 $

CITY OF MCFARLAND

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUND
YEAR ENDED JUNE 30, 2022
(18)
Private
Purpose
Trust Fund
RDA
Successor
Agency

ADDITIONS
Property Taxes - $
Total Additions -

DEDUCTIONS
Administration -
Total Deductions -

CHANGE IN NET POSITION -
Net Position - Beginning of Year 6,665
NET POSITION - END OF YEAR $ 6,665

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(19)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of McFarland, California (the City) was incorporated on July 18, 1957. The City government, providing the following services: general government; public safety; public works; and recreation and development. The City is located in Kern County approximately 25 miles north of Bakersfield, the County government seat.

The City has defined its reporting entity in accordance with accounting principles generally accepted in the United States of America which provide guidance for determining which governmental activities, organizations, and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the reporting entity, including all the fund types of the City.

Accounting principles generally accepted in the United States of America require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an se its will on that organization or there
is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.
discretely presented. Blended component units are, although legally separate entities, in combined with data of the primary government. Discretely presented component units, on the other hand, would be reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the government.

Blended Component Units
Parking Authority
Parking Authority) was formed by the City on April 12, 2012, by Resolution No. 2012-069, under Part 2 of Division 18 of the California Streets and Highways Code, Directors of the Parking Authority. The fundamental aim of the Parking Authority is to purchase property and construct a public parking lot on that property. The Parking Authority did not report any activity during the year. Separate financial statements are not available for the Authority.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(20)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Blended Component Units (Continued)
McFarland Improvement Authority
the Parking Authority and the City entered into a Joint Exercise of Powers Agreement to create the McFarland Improvement Authority (the Improvement Authority). The Improvement Authority. The fundamental aim of the Improvement Authority is to provide for the financing of capital improvements and working capital. The Improvement Authority issued bonds for the purpose of funding capital improvements. Separate financial statements are not available for the Authority.

McFarland Public Financing Corporation
Agency to the Former McFarland Redevelopment Agency entered into a Joint Exercise of Powers Agreement establishing the McFarland Public Financing Corporation (the Corporation) for the purpose of issuing its bonds to be used to provide financial assistance to the City, the Agency or any other public entity of the state of California. The City Council of McFarland is the governing body for the Corporation. The McFarland Public Financing Corporation did not report any activity during the year. Separate financial statements are not available for the Corporation.

Discretely Presented Component Units
There are no component units of the City which meet the criteria for discrete presentation.

B. Basis of Presentation
Government-Wide Financial Statements
The statement of net position and statement of activities display information on all of the nonfiduciary activities of the City and its blended component units. These statements include the financial activities of the overall government, except fiduciary activities.

Eliminations have been made to minimize the double counting of internal activities.

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, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(21)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Government-Wide Financial Statements (Continued)
The statement of activities presents a comparison between direct expenses and governmental activities. Direct expenses are
those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Certain indirect costs, which cannot be identified and broken down are included in the program expense reported for individual functions and activities. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions, and 3) capital grants and contributions. Taxes and other items not properly included among program revenues are presented instead as general revenues.

Fund Financial Statements
fiduciary funds and blended component units. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis is placed on major funds within the governmental and proprietary categories, each is displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

The City reports the following major governmental funds:

The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General fund includes such activities as general government, public safety, public works, and recreation and development.

The TDA-LTF Fund
Development Allocation which is legally restricted for specific purposes, primarily street construction and maintenance and related street expenditures. This fund also accounts for other state and federal grant revenues related to street maintenance or construction.

The Gas Tax Fund is used to account for highway users tax allocated by the state of California.

The CalHOME Fund is used to account for a CalHOME Homeownership Project Development Program award.

The Development Impact Fund is used to account for impact fees.

The Miscellaneous Grants Fund is used to account for grants not frequently awarded to the City.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(22)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
The McFarland Improvement Authority Fund is reported as debt service fund and is used to account for the activities of the McFarland Improvement Authority, including debt repayment.

The City reports the following major proprietary funds:

The Sewer Fund is used to account for the provisions of sewer service to the residents of the City. All activities necessary to provide such service are accounted for in this fund.

The Refuse Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such service are accounted for in this fund.

The Water Fund is used to account for the provisions of water service to residents of the City. All activities necessary to provide such service are accounted for in this fund.

The City reports the following additional fund type:

The RDA Successor Agency Private Purpose Trust Fund is a fiduciary fund used to account for monies received from the Kern County Auditor Controller for the repayment of the enforceable obligations of the former McFarland Redevelopment Agency. These funds are restricted for the sole purpose of payment on items on an approved Recognized Payment Obligation Schedule.

C. Basis of Accounting and Measurement Focus
The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales tax, grants, entitlements, and donations. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(23)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting and Measurement Focus (Continued) 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. Property and sales taxes, interest and charges for services are considered susceptible to accrual and are accrued when their receipt occurs within 60 days after the end of the fiscal year. Certain state and federal grants are considered susceptible to accrual and are accrued when their receipt occurs within 180 days after the end of the fiscal year. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in the various functions of the governmental funds.

Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets.

All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

D. Cash and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interestbearing accounts and other investments for varying terms.

Certain disclosure requirements for deposits and investment risks were made in the following areas: Interest Rate Risk, Credit Risk, Custodial Credit Risk, and Concentrations of Credit Risk.

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

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Interest earned on investments is allocated using the Local Agency Fund (LAIF) factor to selected funds by the City.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(24)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Cash and Investments (Continued)
The City participates in an investment pool LAIF, which has invested a portion of the subject to credit risk with the full faith and credit of the state of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to changes in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City statements.

E. Receivables
Receivables for governmental activities consist mainly of accounts, intergovernmental, and interest. Receivables for business-type activities consist mainly of user fees, intergovernmental, and interest earnings. Management believes its receivables are fully collectible and, accordingly, no allowance for doubtful accounts is required.

F. Other Assets
Prepaid Items
Payments made for services that will benefit future accounting periods are recorded as prepaid costs in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Prepaid costs do not reflect current appropriable resources and thus, an equivalent portion of fund balance is reported as nonspendable.

G. Loans Receivable
Loans receivable represent low interest notes and related accrued interest to finance multi-family and single family construction and rehabilitation projects, homebuyer assistance for low income families, as well as business start-up costs. Loan terms are 15 to 55 years with an interest rate at 0% to 5%. The primary source of funding for these loans comes from grants from the Community Development Block Grant (CDBG) program and Home Investment Partnerships (HOME) program. The CDBG and HOME grants contain monitoring requirements to ensure grant compliance. These requirements are reflected in the loan agreements.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(25)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets
Capital and Right-to-Use assets, which include property, plant, equipment and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital and Right-to-Use assets are defined by the City as assets with an initial cost of more than $1,000 ($25,000 for infrastructure) and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at the estimated acquisition value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Capital and Right-to-Use assets used in operations are depreciated or amortized using the straight line method over the assets estimated useful life in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:

Depreciable/Amortizable Asset Estimated Lives
Buildings 15 to 40 Years
Improvements Other Than Buildings 15 to 40 Years
Machinery and Equipment 5 to 20 Years
Infrastructure 20 to 50 Years
I. Leases
Leases are defined by the general government as the right to use an underlying asset.

As lessee, the City recognizes a lease liability and an intangible right-of-use lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying asset. Right-of-use lease assets are measured based on the net present value of the future lease payments at inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Remeasurement of a lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The City calculates the amortization of the discount on the lease liability and reports that amount as outflows of resources. Payments are allocated first to accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations but are recognized as outflows of resources in the period in which the obligation was incurred.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(26)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Leases (Continued)
As lessor, the City recognizes a lease receivable. The lease receivable is measured using the net present value of future lease payments to be received for the lease term and deferred inflow of receivables at the beginning of the lease term. Periodic amortization of the discount on the receivable are reported as interest revenue for that period. Deferred inflows of resources are recognized as inflows on a straight-line basis over the term of the lease. This recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivables occur when there are modifications, including but not limited to changes in the contract price, lease term, and adding or removing an underlying asset to the lease agreements. In the case of a partial or full lease termination, the carrying value of the lease receivable and the related deferred inflow of resources will be reduced and will include a gain or loss for the difference.

J. Property Tax
Secured property taxes are levied during September of each year for the fiscal year beginning with the preceding July 1 and ending the following June 30. They become a lien on real property on January 1 preceding the fiscal year for which taxes are levied.

The Kern County Assessor establishes the value of the property on January 1. Taxes are payable in two installments on November 1 and February 1, and are delinquent if not paid by December 10 and April 10, respectively. In 1978, a state constitutional amendment (Proposition 13) provided that the tax rate be limited to 1% of market value, levied only by the County and shared with all other jurisdictions. Such limitation on the rate may only be increased through voter approval. The County collects property taxes assessed valuations and on the tax rate for voter-approved debt.

K. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.
the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(27)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Interfund Transactions (Continued)
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide statement of activities.

Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.

All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation.

L. Unearned Revenue
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned. When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue.

M. Compensated Absences
sick pay benefits up to certain limits. For governmental funds, compensated absences are recorded as current and noncurrent liabilities only on the government-wide financial statements. For proprietary funds, current and noncurrent liabilities for compensated absences are recorded in both the government wide financial statements and the fund financial statements. There is no liability for unpaid sick leave since the City does not pay such amounts when employees separate from service with the City.

N. Long-Term Obligations
In the government-wide financial statements and in the proprietary fund financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.

Bond issuance costs are expensed when bonds are issued.

In governmental fund financial statements, bond premiums and discounts, as well as debt issuance costs are recognized in the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuance are also reported as other financing sources. Issuance costs, whether or not withheld from the actual debt proceeds, are reported as debt service expenditures.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(28)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Net Position
The government-wide and business-type activities fund financial statements utilize a net position presentation. Net position is categorized as follows:

Net Investment In Capital Assets
including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position
by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position
not restricted for any project or other purpose or included in net investment in capital assets.
policy to use restricted net position first, and then unrestricted net position as they are needed.

P. Fund Balance
Fund balances of the governmental funds are presented in the financial statements based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. Fund balances are classified as follows:

Nonspendable
spendable form or because they are legally or contractually required to be maintained intact.

Restricted
governments, etc.) or by constitutional provision or enabling legislation.

Committed
internally imposed by the government through formal action (Ordinances and Resolutions) at the highest level of decision making authority (City Council).

These commitments can only be overturned by a like action.

Assigned
considered neither restricted nor committed. Undesignated excess Fund Balances may be assigned by the City Council, City Manager, or Finance Director for specific purposes through the budget process or agenda items. The assigned designation may be reversed by the City Council at any public meeting.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(29)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance (Continued)
Unassigned
have not been classified within the other above mentioned categories.

Unassigned Fund Balances may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

When expenditures are incurred for purposes for which all restricted, committed, following order, except for instances wherein an ordinance specifies the fund balance to be charged: Restricted, Committed, Assigned, and Unassigned.

The City does not have a formal minimum fund balance requirement.

Q. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

R. Implementation of New Governmental Accounting Standards The Governmental Accounting Standards Board (GASB) releases new accounting and reporting process. New standards applicable to the year ended June 30, 2022, are as follows:

Leases
This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The City implemented this standard.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(30)
NOTE 2 CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds, which are held and invested by independent outside custodians through contractual agreements are not pooled.

Statement of Net Position:

Cash and Investments 14,456,858 $
Cash with Fiscal Agents 4,381,612
Statement of Fiduciary Net Position:

Cash and Investments 6,665
Total 18,845,135 $
Cash and investments as of June 30, 2022, consist of the following:

Deposits with Financial Institutions 18,483,828 $
Cash on Hand 3,000
Investments 358,307
Total 18,845,135 $
Deposits
accounts and money market accounts) was $18,845,135 and the bank balance was $18,937,919. The difference between the bank balance and the carrying amount represents outstanding warrants and wire transfers and deposits in transit.

Custodial Credit Risk
In the case of deposits, this is the risk t
deposits may not be returned to it. The City has no deposit policy for custodial credit risk.

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(31)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Deposits (Continued)
Custodial Credit Risk (Continued)
Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository is considered to be held for, and in the name of, the local governmental agency.

Investments
The City had the following investments at June 30, 2021:

Investment Type Fair Value Maturity Date
State Treasurer's Investment Pool (LAIF) 358,307 $ N/A
Total Investments 358,307 $
Interest Rate Risk
maturities. The City has no investment policy for interest rate risk.

Credit Rating Risk
The City is required to disclose the credit quality ratings of investments in debt securities as issued by nationally recognized statistical rating organizations. At June 30, 2022, the Credit rating for investment in LAIF was unavailable. The City has no investment policy for credit risk.

Concentration of Credit Risk
The City is required to disclose any investment in any one issuer that represents 5% or more of total investments. Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this requirement. As such, the City has no concentration of credit risk that exceeds 5%. The City has no investment policy for concentration of credit risk.

Custodial Credit Risk
For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit use of mutual funds or government investment pools (such as LAIF). The City has no investment policy for custodial credit risk.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(32)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments (Continued)
Custodial Credit Risk (Continued)
The table below identifies the investment types that are authorized for the City of more restrictive). The table also identifies certain provisions of the California addresses investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the Maximum Minimum
Maximum Percentage Quality
Authorized Investment Type Maturity of Portfolio Requirements Local Agency Bonds 5 Years None None
U.S. Treasury Obligations 5 Years None None
State Obligations 5 Years None None
CA Local Agency Obligations 5 Years None None
U.S. Agency Obligations 5 Years None None
Bankers Acceptance 180 Days 40% None
Commercial Paper - Select Agencies 270 Days 25% A-1
Commercial Paper - Other Agencies 270 Days 40% A-1
Negotiable Certificates of Deposit 5 Years 30% None
CD Placement Service 5 Years 30% None
Repurchase Agreements 1 Year None None
Reverse Repurchase Agreements 92 Days 20% None
Medium-Term Notes 5 Years 30% A
Mutual and Money Market Funds N/A 20% Multiple
Collateralized Bank Deposits 5 Years None None
Mortgage Pass-Through Securities 5 Years 20% AA
Bank/Time Deposits 5 Years None None
County Pooled Investment Funds N/A None None
Joint Powers Authority Pool N/A None Multiple
Local Agency Investment Fund (LAIF) N/A None None
Fair Value of Investments
The City measures and records its investments using fair value measurement guidelines established by accounting principles generally accepted in the United States of America.

These guidelines recognize a three-tiered fair value hierarchy, as follows:

Level 1
Level 2
Level 3

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(33)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value of Investments (Continued)
and looking through to the underlying investments of the pool is not appropriate. Therefore, value hierarchy described above.

Investment in External Investment Pools
The City maintains an investment in the state of California Local Agency Investment Fund (LAIF), managed by the State Treasurer. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State Code. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. is the same as the value of the pool shares. There are no restrictions on withdrawal of funds. The total amount invested by all public agencies in LAIF on that day was $240.4 billion. Of that amount, 97.19% is invested in nonderivative financial products and 2.81% in structured notes and asset-backed securities.

Restricted Cash and Investments with Fiscal Agents
Cash and investments at June 30, 2022, that are restricted by legal or contractual requirements are comprised of the following:

Governmental Activities:

McFarland Improvement Authority:

Reserves for Capital Projects 3,354,064 $
Debt Service Reserves 272,897
Total McFarland Improvemant Authority: 3,626,961
Business-Type Activities:

Sewer Fund:

Debt Service Reserves 509,645
Water Fund:

Debt Service Reserves 245,006
Total 754,651
Total Restricted Cash and Investments $ 4,381,612

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(34)
NOTE 3 CAPITAL ASSETS
Capital and right-to-use assets activity for the year ended June 30, 2022, was as follows:

Balance
July 1, 2021 Transfers/ Balance
As Restated Additions Retirements Adjustments June 30, 2022 Governmental Activities:

Capital Assets, Not Being Depreciated:

Land 993,176 $ - $ - $ - $ 993,176 $
Construction In Progress 4,477,613 1,103,148 - (3,274,206) 2,306,555 Total Capital Assets, Not Being
Depreciated 5,470,789 1,103,148 - (3,274,206) 3,299,731 Capital Assets, Being Depreciated:

Infrastructure 32,772,180 - - 3,274,206 36,046,386
Machinery and Equipment 1,523,781 455,576 - - 1,979,357 Vehicles 1,139,020 292,210 - (218,734) 1,212,496
Total Capital Assets, Being
Depreciated 35,434,981 747,786 - 3,055,472 39,238,239
Less Accumulated Depreciation for:

Infrastructure (7,411,221) (1,122,815) - - (8,534,036)
Machinery and Equipment (1,281,699) (140,373) - - (1,422,072) Vehicles (879,878) (88,392) - 40,600 (927,670)
Total Accumulated Depreciation (9,572,798) (1,351,580) - 40,600 (10,883,778) Total Capital Assets, Being
Depreciated, Net 25,862,183 (603,794) - 3,096,072 28,354,461 Right-to-Use Assets, Being Amortized:

Machinery and Equipment 183,651 4,414 - - 188,065
Total Right-to-Use Assets, Being
Amortized 183,651 4,414 - - 188,065
Less Accumulated Amortization for:

Machinery and Equipment - (81,763) - - (81,763)
Total Accumulated Amortization - (81,763) - - (81,763)
Total Right-to-Use Assets, Being
Amortized, Net 183,651 (77,349) - - 106,302
Governmental Activities Capital
Assets, Net 31,516,623 $ 422,005 $ - $ (178,134) $ 31,760,494 $

CITY OF MCFARLAND

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JUNE 30, 2022
(35)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Balance Transfers/ Balance
As Restated Additions Retirements Adjustments June 30, 2022 Business-Type Activities:

Capital Assets, Not Being Depreciated:

Land 1,280,063 $ - $ - $ - $ 1,280,063 $
Total Capital Assets, Not Being
Depreciated 1,280,063 - - - 1,280,063
Capital Assets, Being Depreciated:

Infrastructure 6,836,223 - - - 6,836,223
Buildings and Improvements 8,579,010 - - - 8,579,010
Machinery and Other 11,894,931 66,387 - 15,020 11,976,338 Vehicles 1,005,466 - - 27,311 1,032,777
Total Capital Assets, Being
Depreciated 28,315,630 66,387 - 42,331 28,424,348
Less Accumulated Depreciation for:

Infrastructure (552,345) (170,905) - - (723,250)
Buildings and Improvements (2,772,121) (410,658) - - (3,182,779) Machinery and Other (7,767,015) (324,055) - - (8,091,070) Vehicles (846,066) (28,424) - - (874,490)
Total Accumulated Depreciation (11,937,547) (934,042) - - (12,871,589) Total Capital Assets, Being
Depreciated, Net 16,378,083 (867,655) - 42,331 15,552,759 Business-Type Activities Capital
Assets, Net 17,658,146 $ (867,655) $ - $ 42,331 $ 16,832,822 $ Depreciation
Depreciation expense was charged to governmental functions as follows at June 30, 2022:

General Government 308,977 $
Public Safety 44,866
Public Works 844,953
Community Development 152,784
Total Depreciation Expense - Governmental
Functions 1,351,580 $
Depreciation expense was charged to business-type functions as follows at June 30, 2022:

Solid Waste 422,349 $
Refuse 4,711
Water 473,080
Public Transit 33,902
Total Depreciation Expense - Business-Type
Functions 934,042 $

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(36)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Amortization
Amortization expense was charged to governmental functions as follows at June 30, 2022:

General Government 3,811
$

Public Safety 77,952
Total Amortization Expense - Governmental
Functions 81,763
NOTE 4 INTERFUND TRANSACTIONS
Due to/from Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds. The following are due from and due to balances as of June 30, 2022:

Due from Due to
Other Funds Other Funds
General Fund 674,252 $ 124,043 $
McFarland Improvement Authority - 501,698
TDA - LTF - 722,442
Development Impact - 1,209,542
Miscellaneous Grants 26,908 -
Sewer - 4,419
Refuse - 4,114
Water - 1,360
Nonmajor Governmental Funds - 514,769
Nonmajor Enterprise Fund 604 4,431
Total 1,894,291 $ 1,894,291 $
Advances from/to Other Funds
The amount payable to the Sewer Fund relate to a loan for capital projects, including park facilities and other public infrastructure and facilities. The loan is scheduled to be repaid in 2024:

Advances to Advances from
Other Funds Other Funds
General Fund - $ 114,211 $
Sewer - 114,211
Total 114,211 $ 114,211 $
$

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(37)
NOTE 4 INTERFUND TRANSACTIONS (CONTINUED)
Transfers
Transfers are indicative of funding for capital projects, and lease payments or debt service.

The following are the interfund transfer balances for the year ended June 30, 2022:

Transfer In Transfer Out
General Fund 3,271,486 $ - $
TDA - LTF 1,965,385 -
Development Impact 170,399 -
Miscellaneous Grants - 66,387
Sewer 83,877 59,895
Refuse 11,475 -
Water 134,765 -
Nonmajor Governmental Funds - 1,154,334
Nonmajor Enterprise Fund 125,964 3,497
Total 3,523,732 $ 3,523,732 $
During the year, the City transferred $1,965,385 from its TDA-LTF Fund to the General Fund to fund capital projects. Transfers from COPS ($744,627) and Road Maintenance and Rehabilitation ($409,707) to the General Fund were made to fund related projects expended in the General Fund.

NOTE 5 UNEARNED/UNAVAILABLE REVENUE
Unearned revenue consists of moneys received where the City has not yet incurred the qualifying expenditures.

Deferred inflows of resources represents an acquisition of net position or fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has one transaction type that qualifies for reporting under this category: unavailable revenue. Unavailable revenue is only reported in the governmental funds balance sheet under the modified accrual basis of accounting.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(38)
NOTE 5 UNEARNED/UNAVAILABLE REVENUE (CONTINUED)
At June 30, 2022, components of unearned and unavailable revenues were as follows:

Unearned Unavailable
Revenue Revenue Total
General Fund:

Grant Revenue 157,997 $ - $ 157,997 $
TDA:

Grant Revenue - 573,906 573,906
CalHOME:

Grant Revenue and Loans - 2,916,107 2,916,107
Miscellaneous Grants:

Grant Revenue and Loans 1,509,447 - 1,509,447
Nonmajor Governmental Funds:

Grant Revenue and Loans 416 709,906 710,322
Total Governmental Activities 1,667,860 $ 4,199,919 $ 5,867,779 $ Public Transit:

Grant Revenue 12,769 $
Total Business-Type Activities 12,769 $
NOTE 6 LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:

Restated Amounts
Balance Balance Due Within
Type of Indebtedness July 1, 2021 Additions Retirements Adjustments June 30, 2022 One Year Governmental Activities:

Direct Placement
Revenue Bonds 4,350,000 $ - $ (105,000) $ - $ 4,245,000 $ 105,000 $ Unamortized Premiums on Bonds 308,346 - (11,859) - 296,487 - Direct Borrowing
Notes Payable 982,976 - (45,573) (159,764) 777,639 46,985 Other Liabilities
Leases 183,651 4,414 (79,548) - 108,517 87,515
Compensated Absences 32,425 - 21,804 - 54,229 54,229
Total Governmental Activities 5,857,398 $ 4,414 $ (220,176) $ (159,764) $ 5,481,872 $ 293,729 $ Business-Type Activities:

Direct Placement
Revenue Bonds 5,900,000 $ - $ (185,000) $ - $ 5,715,000 $ 190,000 $ Other Liabilities
Compensated Absences 36,322 20,254 - - 56,576 56,576
Total Business-Type Activities 5,936,322 $ 20,254 $ (185,000) $ - $ 5,771,576 $ 246,576 $ Compensated absences for the governmental activities are generally liquidated by the fund where the accrued liability occurred.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(39)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Individual issues of debt payable outstanding at June 30, 2022, are as follows:

Governmental Activities:

Revenue Bonds:

Series 2017 Lease Revenue Bonds dated
December 1, 2017, in the original amount of
$4,450,000 at 3% to 4% interest; principal
and interest payable each March 1 and
September 1 until September 2, 2047,
maturity. Bonds issued by the McFarland
Improvement Authority. Secured by a pledge
of lease revenues. $ 4,245,000
Total Revenue Bonds 4,245,000
Notes Payable:

Note payable to the United States
Department of Agriculture in the amount of
$770,898; principal and interest at 3.375%
due each October 1 through 2058. 750,804
Note payable to the KS State Bank for a
street sweeper in the amount of $119,186;
principal and interest at 4.45% due each
month through March 2024. 26,835
Total Notes Payable 777,639
Total Governmental Activities $ 5,022,639
Business-Type Activities:

Revenue Bonds:

Revenue Bonds dated September 21,
2010, in the original amount of $7,500,000
at 0.65% to 5% interest; payable semiannually commencing April 1, 2011.

Principal is due annually commencing
October 1, 2011, with final payment due
October 1, 2040. Secured by a pledge of
water and wastewater net revenues. $ 5,715,000

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(40)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
The following are schedules of debt service requirements as of June 30, 2022:

Year Ending June 30, Principal Interest Principal Interest 2023 105,000 $ 164,150 $ 46,985 $ 2,207 $
2024 110,000 161,000 41,223 2,150
2025 115,000 157,700 20,264 2,093
2026 115,000 154,250 20,321 2,036
2027 120,000 150,800 20,378 1,979
2028 - 2032 675,000 684,000 102,754 9,032
2033 - 2037 810,000 538,800 104,207 7,579
2038 - 2042 995,000 362,400 105,681 6,105
2043 - 2047 1,200,000 148,000 107,176 4,611
2048 - 2052 - - 108,691 3,095
2053 - 2057 - - 99,959 1,558
2058 - - - 188
Total 4,245,000 $ 2,521,100 $ 777,639 $ 42,633 $
Year Ending June 30, Principal Interest
2023 190,000 $ 277,213 $
2024 200,000 268,925
2025 210,000 260,213
2026 215,000 250,375
2027 225,000 239,375
2028 - 2032 1,315,000 1,010,625
2033 - 2037 1,680,000 638,000
2038 - 2042 1,680,000 173,000
Total 5,715,000 $ 3,117,726 $
Governmental Activities
Revenue Bonds Note Payable
Business-Type Activities
Revenue Bonds
Pledged Revenues
The City has pledged future water and wastewater utility revenue to repay revenue bonds issued in 2010. The various bonds were issued for the purchase of construction of various water or wastewater infrastructure. At June 30, 2022, $5,715,000 remains outstanding to be repaid by future water and wastewater revenues. If such revenues prove insufficient, the remainder will be repaid as a general obligation of the City. For the fiscal year ended June 30, 2022, the net revenue available for service of this debt was $1,109,260. The debt principal and interest paid in fiscal year 2021-2022 equals $469,534 (42.3% of available pledged net revenues).

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(41)
NOTE 7 LEASES
Leases Payable
The City leases equipment as well as certain operating and office facilities for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through 2027 with interest rates ranging from 7.3918 to 14.4717%.

Total future minimum lease payments under lease agreements are as follows:

Year Ending June 30, Principal Interest
2023 $ 6,578 87,515 $
2024 1,098 13,497
2025 533 5,167
2026 168 1,832
2027 18 506
Total Minimum Lease Payments $ 8,395 108,517 $
Governmental Activities
Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.

Governmental
Activities
Equipment 188,065 $
Less: Accumulated Amortization (81,763)
Total 106,302 $
Leases Receivable
The City, acting as a lessor, leases various assets under long-term, noncancelable lease agreements with no interest. The leases expire at various dates through 2026. During the year ended June 30, 2022, the City recognized $13,951 for governmental activities and $61,181 for business type activities in lease revenue and no interest revenue, pursuant to these contracts. Total minimum lease payments to be received under lease agreements are as follows:

Year Ending June 30, Principal Interest Principal Interest 2023 $ - 13,947 $ 59,405 $ - $
2024 - 14,366 61,781 -
2025 - - 64,252 -
2026 - - 32,757 -
Total Minimum Lease Payments $ - 28,313 $ 218,195 $ - $ Governmental Activities Business Activities

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(42)
NOTE 8 FUND BALANCES
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent.

The fund balances for all major and nonmajor governmental funds as of June 30, 2022, were distributed as follows:
ancy McFarland Other
Development Miscellaneous Improvement Governmental
General TDA-LTF Gas Tax CalHOME Impact Grants Authority Funds Total Nonspendable:

Prepaids $ - 4,129 $ - $ - $ - $ - $ - $ - $ 4,129 $
Land Held for Resale - 446,593 - - - - - - 446,593
Subtotal - 450,722 - - - - - - 450,722
Restricted for:

Streets and Transportation - - 1,074,238 - - - - 777,351 1,851,589 Impact Fees - - - - 1,841,095 - - - 1,841,095
CalHOME - - - 266,048 - - - - 266,048
General Government - - - - - 112,365 - - 112,365
Debt Service - - - - - - 272,300 - 272,300
Capital Projects - - - - - - 2,852,963 - 2,852,963
Subtotal - - 1,074,238 266,048 1,841,095 112,365 3,125,263 777,351 7,196,360 Assigned to:

CUP Fees for Capital Projects - 2,757,119 - - - - - - 2,757,119 Subtotal - 2,757,119 - - - - - - 2,757,119
Unassigned 876,435 (582,319) - - - - - (100,259) 193,857 Total $ (582,319) 4,084,276 $ 1,074,238 $ 266,048 $ 1,841,095 $ 112,365 $ 3,125,263 $ 677,092 $ 10,598,058 $ NOTE 9 RETIREMENT PLAN
A. General Information about the Pension Plan
Plan Description
and beneficiaries. The plan is administrated by John Hancock Life Insurance Company.

Funding Policy
years of service. Vesting is at 33% per year over three years. In the event an employee terminates service prior to retirement, the employee is entitled to a refund of the During the current year, the City was required to make contributions to the plan in the amount of $243,232. The plan also included $4,753 of forfeitures during the current year.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(43)
NOTE 10 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts: theft of, damage to and destruction of assets: errors and omissions; injuries to employees; and natural disasters.

Central San Joaquin Valley Risk Management Authority (the RMA). The RMA is comprised of 55 member cities and special districts and is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of the RMA is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. Each member has a representative on the Board of Directors with officers of the RMA being elected annually by the Board Members.

General Liability
Annual deposits are paid by members and are adjusted retrospectively to cover costs. Each $25,000. The city is responsible for the first $25,000 of each occurrence. The City does not share or pay for losses of other members with SIRs under $25,000. Specific coverage includes general and automobile liability, personal injury, errors and omissions, and certain other coverage. Claims from $25,000 to $1,000,000 are covered by a special pre-funded self-insurance pool maintained by the RMA. Claims from $1,000,000 to $4,000,000 are selfinsured by the California Affiliated Risk Management Authorities (CARMA), a joint powers authority providing excess coverage to a membership consisting of six underlying joint powers authorities, representing approximately 175 cities and special districts. Claims from $4,000,000 to $39,000,000 are covered by Excess Comprehensive General Liability Policies.

Annual deposits are paid by members and are adjusted retrospectively to cover costs. Each $25,000 per occurrence. The City is responsible for the first $25,000 of each occurrence.

The City does not share or pay for losses of other members with SIRs under $25,000.

Losses between $25,000 and $500,000 are covered by a special pre-funded self-insurance pool maintained by the RMA.

Compensation Excess Joint Powers Authority which is a joint powers authority providing excess coverage to 36 members including cities, special districts, and joint powers authorities. Claims in excess of $5,000,000 are self-insured by the California State Association of Counties Excess Insurance Authority, another joint powers authority.

There were no settlements in excess of insurance coverage in any of the three prior fiscal years.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(44)
NOTE 10 RISK MANAGEMENT (CONTINUED)
The audited financial information from Central San Joaquin Valley Risk Management Authority for the year ended June 30, 2022, is as follows:

Total Assets 150,837,823 $
Total Liabilities 118,663,929
Net Position 32,173,894 $
Total Revenues 58,911,480 $
Total Expenses 47,584,363
Change in Net Position 11,327,117 $
Complete audited financial statements can be obtained from their office at 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.

NOTE 11 OTHER INFORMATION
Fund Deficits
The City has accumulated fund deficits in the following individual funds:

Governmental Funds:

TDA-LTF 582,319 $
CDBG 13,888
HOME 85,457
COPS 914
Commitments
The City has signed agreements to construct various capital improvements subsequent to June 30, 2022. The balance owed on the commitments at June 30, 2022, was approximately $1,629,553.

Contingencies
Federal and State Government Programs
The City participates in several federal and state grant programs. These programs are subject to audit and review by the grantor pursuant to grant provisions. Expenditures may be disallowed by the granting agencies that cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
counsel is unable to estimate at this time the probability of favorable or unfavorable outcomes. Therefore, no provision has been made in the financial statements for a loss contingency.

CITY OF MCFARLAND

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(45)
NOTE 12 PRIOR PERIOD ADJUSTMENT
The City determined that certain transactions were recorded incorrectly in a prior year.

The impact of the restatements on the fund balances and net position as previously reported is presented below:

Government-Wide Governmental Fund
Statements Statements
Governmental
Activities COPS
Fund Balance / Net Position - June 30, 2021 37,870,666 $ (914) $ Adjustments:

To recognize revenues earned in prior years, but not recorded until the current year. 233,434 233,434 Restated Fund Balance / Net Position - June 30, 2022 38,104,100 $ 232,520 $ (46)

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2022
(47)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes 2,550,654 $ 2,550,654 2,743,476 $ 192,822 $
Licenses and Permits 315,085 315,085 245,583 (69,502)
Fines and Forfeitures 52,482 52,482 44,267 (8,215)
Use of Money and Property 19,720 19,720 19,544 (176)
Intergovernmental Revenues 3,805,274 3,805,274 725,993 (3,079,281) Charges for Services 766,095 766,095 3,259,696 2,493,601 Contributions 6,500 6,500 6,851 351
Other Revenues 63,773 63,773 78,561 14,788
Total Revenues 7,579,583 7,579,583 7,123,971 (455,612)

EXPENDITURES
Current:

General Government 789,553 789,553 637,204 152,349
Public Safety 4,106,455 4,106,455 3,618,590 487,865
Public Works 865,296 865,296 699,807 165,489
Community Development 566,130 566,130 458,829 107,301
Debt Service:

Principal 553,708 553,708 125,121 428,587
Interest and Other Charges 6,750 6,750 38,268 (31,518)
Capital Outlay 4,981,188 6,291,606 1,453,375 4,838,231
Total Expenditures 11,869,080 13,179,498 7,031,194 6,148,304

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)
EXPENDITURES (5,599,915) (4,289,497) 92,777 5,692,692

OTHER FINANCING SOURCES
Debt Proceeds 2,000,000 2,000,000 - (2,000,000)
Issuance of Leases - - 4,414 4,414
Transfers In 3,692,177 3,692,177 3,271,486 (420,691)
Total Other Financing
Sources (Uses) 5,692,177 5,692,177 3,275,900 (420,691)
NET CHANGE IN FUND BALANCES 92,262 1,402,680 3,368,677 5,272,001 Fund Balances - Beginning of Year 715,599 715,599 715,599 - FUND BALANCES - END OF YEAR $ 807,861 2,118,279 $ 4,084,276 $ 3,276,415 $

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(48)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental Revenues 1,600,000 $ 1,600,000 $ 2,105,508 $ 505,508 $ Total Revenues 1,600,000 1,600,000 2,105,508 505,508

EXCESS OF REVENUES OVER
EXPENDITURES 1,600,000 1,600,000 2,105,508 505,508

OTHER FINANCING USES
Transfers Out (1,300,224) (1,300,224) (1,965,385) (665,161) Total Other Financing Uses (1,300,224) (1,300,224) (1,965,385) (665,161) NET CHANGE IN FUND BALANCES 299,776 299,776 140,123 (159,653) Fund Balances - Beginning of Year (722,442) (722,442) (722,442) - FUND BALANCES - END OF YEAR $ (422,666) (422,666) $ (582,319) $ (159,653) $

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(49)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental Revenues 376,511 $ 376,511 $ 296,927 $ (79,584) $ Total Revenues 376,511 376,511 296,927 (79,584)

EXCESS OF REVENUES OVER
EXPENDITURES 376,511 376,511 296,927 (79,584)

OTHER FINANCING USES
Transfers Out (376,511) (376,511) - 376,511
Total Other Financing Uses (376,511) (376,511) - 376,511 NET CHANGE IN FUND BALANCES - - 296,927 296,927
Fund Balances - Beginning of Year 777,311 777,311 777,311 - FUND BALANCES - END OF YEAR $ 777,311 777,311 $ 1,074,238 $ 296,927 $

CITY OF MCFARLAND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(50)
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Licenses and Permits 1,026,496 $ 1,026,496 $ 763,217 $ $ (263,279) Use of Money and Property 2,000 2,000 - (2,000)
Total Revenues 1,028,496 1,028,496 763,217 (265,279)

EXCESS OF REVENUES
OVER EXPENDITURES 1,028,496 1,028,496 763,217 (265,279)

OTHER FINANCING USES
Transfers Out (1,028,496) (1,028,496) 858,097 (170,399) Total Other Financing Uses (1,028,496) (1,028,496) 858,097 (170,399) NET CHANGE IN FUND BALANCES - - 592,818 592,818
Fund Balances - Beginning of Year 1,248,277 1,248,277 1,248,277 - FUND BALANCES - END OF YEAR $ 1,248,277 1,248,277 $ 1,841,095 $ 592,818 $

CITY OF MCFARLAND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(51)
NOTE 1 APPROPRIATED BUDGET AND BUDGETARY CONTROL
The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year for the General and Special Revenue funds. The budgets are presented for reporting purposes on a budgetary basis consistent with accounting principles generally accepted in the United States of America. The McFarland Improvement Authority does not adopt a budget.

The appropriated budget is prepared by fund, function, and department. The City Manager may make transfers of appropriations within a department and make transfers of appropriations between departments as long as there is no increase or decrease to the overall budget. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the function level. Unexpended or unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are The City Council adopts budgets for the Enterprise funds. However, all Proprietary fund measurement focus. As a result, budget comparisons are impractical. Additionally, the City is not legally mandated to report the results of operations for these Proprietary fund types on a budget comparison basis; therefore, budgetary data related to these funds has not been presented.

The City did not present a budgetary schedule for the CalHOME Fund or the Miscellaneous Grants Fund since these funds did not report a budget this year. (52)

COMBINING FUND STATEMENTS

CITY OF MCFARLAND

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(53)
Road
Lighting and Maintenance
CDBG HOME Landscape COPS and Rehab Total
ASSETS
Cash and Investments - $ - $ 243,882 $ - $ 513,027 $ 756,909 $ Receivables:

Accounts - 3,383 - - - 3,383
Intergovernmental 410,338 - - - 23,701 434,039
Loans Receivable - 709,906 - - - 709,906
Total Assets 410,338 $ 713,289 $ 243,882 $ - $ 536,728 $ 1,904,237 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable - $ - $ 1,165 $ - $ - $ 1,165 $
Accrued Liabilities - - 889 - - 889
Due to Other Funds 424,226 88,840 789 914 - 514,769
Unearned Revenue - - - - 416 416
Total Liabilities 424,226 88,840 2,843 914 416 517,239

DEFERRED INFLOWS OF

RESOURCES
Unavailable Revenue - 709,906 - - - 709,906

FUND BALANCES
Restricted - - 241,039 - 536,312 777,351
Unassigned (13,888) - (85,457) - (914) (100,259)
Total Fund Balances (13,888) 241,039 (85,457) 536,312 (914) 677,092 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 410,338 $ 713,289 $ 243,882 $ - $ 536,728 $ 1,904,237 $ Special Revenue

CITY OF MCFARLAND

COMBINING STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
(54)
Road
Lighting and Maintenance
CDBG HOME Landscape COPS and Rehab Total

REVENUES
Taxes - $ - $ 139,033 $ - $ 306,549 $ 445,582 $
Use of Money and Property - - 30 - - 30
Intergovernmental Revenues 402,547 - - 511,193 - 913,740 Total Revenues 402,547 - 139,063 511,193 306,549 1,359,352

EXPENDITURES
Current:

Public Works - - 152,196 - - 152,196
Capital Outlay - 401,973 - - - 401,973
Total Expenditures 401,973 - 152,196 - - 554,169

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - 574 511,193 (13,133) 306,549 805,183

OTHER FINANCING USES
Transfers Out - - - (744,627) (409,707) (1,154,334)
Total Other Financing Uses - - - (744,627) (409,707) (1,154,334) NET CHANGE IN FUND BALANCES - 574 (13,133) (233,434) (103,158) (349,151) Fund Balances - Beginning
of Year as Restated (14,462) 254,172 (85,457) 232,520 639,470 1,026,243 FUND BALANCES - END OF YEAR $ (85,457) (13,888) $ 241,039 $ (914) $ 536,312 $ 677,092 $ Special Revenue

CITY OF MCFARLAND

SINGLE AUDIT REPORT
YEAR ENDED JUNE 30, 2022

CITY OF MCFARLAND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 1
INDEP

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER

COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 3
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 7
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 8
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 10
(1)
INDEP

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable City Council
City of McFarland
McFarland, California
We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of McFarland (the City) as of and for the year ended June 30, 2022, and the related notes to our report thereon dated June 8, 2023.

Report on Internal Control Over Financial Reporting
internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-001, 2022-002, 2022-003, 2022-004 and 2022-005 that we consider to be material weaknesses.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(2)
Honorable City Council
City of McFarland
Report on Compliance and Other Matters
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City of
Government Auditing Standards requires the auditor to perform limited procedures on the City of o the findings identified in our audit and described in the accompanying other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the accordance with Government Auditing Standards
compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Roseville, California
Ju , 2023
(3)
INDEP

PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM

GUIDANCE
Honorable City Council
City of McFarland
McFarland, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of McFarland, California's (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under Audit of Compliance section of our report.

We are required to be independent of the City of McFarland and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
Honorable City Council
City of McFarland
(4)
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City
whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, compliance
requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

Obtain an understanding of the City
order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Honorable City Council
City of McFarland
(5)
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2022-006. Our opinion on each major federal program is not modified with respect to this matter.

Government Auditing Standards requires the auditor to perform limited procedures on the City response to the noncompliance finding identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider to be a significant deficiency.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2022- 006, to be a significant deficiency.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. (6)
Honorable City Council
City of McFarland
Government Auditing Standards requires the auditor to perform limited procedures on the City response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City e was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of McFarland as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively sued our report thereon, dated
June 8, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Roseville, California
July 11, 2023

CITY OF MCFARLAND

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards. (7)
Federal
Assistance Pass-Through Total Passed
Listing Entity Identifying Federal Through to
Number Number Expenditures Subrecipients
U.S. Department of Agriculture
Direct Programs:

Community Facilities Direct Loan and Grant Program 10.766 $ 664,188 $ - Subtotal - Community Facilities Loans and Grant Cluster 664,188 - Total U.S. Department of Agriculture 664,188 -
U.S. Department of Housing and Urban Development
Passed-through State of California Department of Housing and Community Development:

COVID-19 Community Development
Block Grants/Entitlement Grants (CDBG) 14.228 20-CDBG-CV2-3-00001 $ 401,973 $ - Subtotal - CDBG Entitlement Grants Cluster 401,973 -
HOME Investment Partnership Program (Outstanding Loans) 14.239 $ 709,906 $ - Total U.S. Department of Housing and Urban Development 1,111,879 - U.S. Department of Justice
Direct Programs:

Public Safety Partnership and Community Policing Grants 16.710 779,696 - Total U.S. Department of Justice 779,696 -
U.S. Department of Transportation
Passed-through the State Department of Transportation:

Highway Planning and Construction 20.205 CMAQ-8405 234,022 - Subtotal - Highway Planning and Construction Cluster 234,022 - Total U.S. Department of Transportation 234,022 -
U.S. Department of Treasury
Passed-through the State Department of Finance
COVID-19 Coronavirus
State and Local Fiscal Recovery Funds 21.027 345,295 -
Subtotal - Assistance Listing Number 21.027 345,295 -
Total U.S. Department of Treasury - 345,295
Total Expenditures of Federal Awards $ 3,135,080 $ -
Federal Grantor/Pass-through Grantor/Program/Cluster Title

CITY OF MCFARLAND

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(8)
NOTE 1 BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal awards programs of the City of McFarland (the City) for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

NOTE 3 ASSISTANCE LISTING NUMBERS
The program titles and Assistance Listing Numbers were obtained from the federal or passthrough grantor.

NOTE 4 INDIRECT COST RATE
The City did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR §200.414.

When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

CITY OF MCFARLAND

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(9)
NOTE 6 LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
The City offers property rehabilitation and first-time home buyer loans to eligible individuals as part of its HOME program. The loans have continuing compliance requirements and therefore the outstanding balances are reflected on the Schedule. No new loans were issued during the fiscal year ended June 30, 2022.

Loans with
Continuing
Assistance Outstanding Compliance
Listing Number Federal Program Loans Requirements

10.766 Community Facilities Direct Loan and Grant Program 664,188 $ 664,188 $

14.239 Home Investment Partnership Program 709,906 709,906 NOTE 7 COPS UNIVERSAL HIRING GRANT PRIOR YEAR EXPENDITURES The City had federal expenditures in the amount of $268,503 for the COPS Universal Hiring Grant that were not included on the SEFA in a prior year. These amounts have been reported in the current year SEFA in addition to the $511,193 of current year expenditures.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(10)
Financial Statements
Unmodified

2. Internal control over financial reporting:

Material weakness(es) identified? x yes no
Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? x yes none reported compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? x yes no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster

21.027 COVID -19 Coronavirus State and Local Fiscal
Recovery Funds

14.228 COVID -19 Community Development Block
Grants

16.710 Public Safety Partnership and Community
Policing Grants
Dollar threshold used to distinguish between
Type A and Type B programs: $ 750,000
Auditee qualified as low-risk auditee? yes x no

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(11)
Year-End Closing and Account Reconciliations
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The City did not have adequate design of internal controls over significant processes such as performing monthly reconciliations of accounts, including cash, receivables and long-term liabilities.

Furthermore, this year's closing process was delayed because some important procedures were not performed on time while others were performed too early in the process. The results were delays in producing closing entries, trial balances, schedules, reconciliations, account analyses, and other financial reports needed by management and the auditors.

Criteria or Specific Requirement: A benefit of monthly reconciliations is that errors do not accumulate but can be identified and attributed to a particular period, which makes it easier to perform future reconciliations.

Effect: Certain accounts were misstated at year-end, requiring material adjustments.

Cause: The City did not allocate sufficient resources to the accounting function.

Repeat Finding: This is a repeat finding from the prior year (2021-001).

Recommendation: We recommend the City establish procedures for reconciling the general ledger accounts for cash, receivables, accounts payable, to supporting documentation monthly. A benefit of monthly reconciliations is that errors do not accumulate but can be identified and attributed to a particular period, which makes it easier to perform future reconciliations.

We further recommend that the finance department prepare a year-end closing schedule and include all tasks that are necessary to close the year-end. Such a list should include, at a minimum, the following:
a list of year-end tasks, due date of each task, and the responsible employee and management reviewer of each task.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(12)
Cash Reconciliations
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During our audit, we noted the cash reconciliations provided were completed much later than periods being reconciled.

During much of the year, the operating bank account reconciliations appeared to be not completed at the end of each month. Timely preparation of complete and accurate bank reconciliations is a key to maintaining adequate control over both cash receipts and disbursements.

Criteria or Specific Requirement: Year-end and monthly reconciliations and adjustments will ensure meaningful and accurate financial statements.

Effect: Not reconciling the accounts on a monthly basis means that errors or other problems might not be recognized and resolved on a timely basis.

Cause: Management did not perform the cash reconciliations on a monthly basis to confirm the amounts agreed to the general ledger during the fiscal year.

Repeat Finding: This is a repeat finding from the prior year (2021-002).

Recommendation: We recommend that the bank reconciliations be reviewed for accuracy and completeness on a timely basis by the finance department. The review should include tests of mechanical accuracy and tracing of items on the reconciliation to the relevant source documents. The composition of unreconciled differences should be determined and followed up on, and any journal entries deemed necessary as a result be recorded.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(13)
Accounts Receivable
Type of Finding: Material Weakness
Condition: Accounts receivable and revenue were understated by $2,817,488 in the General Fund for conditional use permits and engineering fees. Accounts receivable and revenue were also understated by $23,701 in the road fund for road rehabilitation funding.

Criteria or specific requirement: Accounts receivable and the associated revenues should be recorded in the period they are determined to be recognizable in accordance with generally accepted accounting principles (GAAP).

Effect: The following are misstatements detected as a result of audit procedures that are within the Accounts receivable and revenues were understated by $2,817,448 in the General Fund for conditions use permits and engineering fees.

Accounts receivable and revenues were understated by $23,701 in the Road Fund for road rehabilitation funding.

Cause: Certain accruals were not identified and captured as part of the year end close process.

Repeat Finding: This is not a repeat finding.

Recommendation: The City should provide additional training to departments and staff on revenue recognition in accordance with GAAP and include additional procedures during the year end closing process to capture all year end accruals.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(14)
Vacation Liability
Type of Finding: Material Weakness
Condition: During our audit we noted the City had recorded accrued vacation liabilities in the General Fund overstating the liability for accrued salaries and benefits in the fund statements.

Criteria or specific requirement: Transactions should only be recorded in the General Fund on the modified accrual basis. As such long term liabilities for accrued vacation should only be recorded in the government wide statements on the full accrual basis.

Effect: Accrued salaries and benefits was overstated by $54,229 in the General Fund.

Cause: The City treated accrued vacation like a short term liability rather than a long term liability and recorded it in the general fund.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City only record accrued vacation liabilities in the government wide financial statements as part of their year end GASB conversion entries.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The Finance Department will establish written procedures for reconciliations of all major accounts which are to be completed the end of each month and fiscal year.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(15)
SEFA Preparation
Type of Finding: Material Weakness
Condition: The City made adjustments to the SEFA for the following program: ALN #16.710 Public Safety Partnership and Community Policing Grants.

Criteria or specific requirement: The Auditee's responsibility per the Uniform Guidance, Section 200.508 Part B, is to "prepare appropriate financial statements, including the Schedule of Expenditures of Awards". This includes determining the correct amount of expenditures that need to be reported for the Schedule of Expenditures of Federal Awards.

The SEFA, while not part of the Basic Financial Statements, is audited in relation to the basic financial statements, in accordance with the requirements of the Uniform Guidance. The Uniform Guidance requires auditors to determine major programs and perform risk assessments based on information reported on the SEFA.

Effect: During our review of the preliminary SEFA and testing over the major programs, we noted the City omitted the entire Public Safety Partnership and Community Policing Grants Program from the SEFA which amounted to $511,193 in federal expenditures.

Cause: The city has had staffing issues and high turnover in grant personnel resulting in the program being excluded from the initial SEFA provided.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City provides additional training to the departments to understand their grant reporting requirements.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The City will provide additional training to individuals responsible for grant reporting requirements.

CITY OF MCFARLAND

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(16)
ms
Federal agency: U.S. Department of Treasury
Federal program title: Covid -19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027
Federal Award Identification Number and Year: QCFVLPC1QNF1, FY 2021-2022 Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2021, to June 30, 2022
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Condition: We noted three vendors received disbursements of Federal Funding without going through the bid process. In addition, debarment checks for two vendors were not performed.

Criteria or Specific Requirement: Recipients may use award funds to enter into contracts with vendors who are not debarred to procure goods and services necessary to implement eligible purposes which are outlined by Treasury's Interim Final Rule.

Effect: Without checking debarment before engaging services, the City could have entered into an agreement with a vendor that was disbarred from receiving federal funding.

Context: Two of the four items tested did not have debarment procedures performed prior to the commencement of work. In addition the bid process wasn't followed for three of the items tested because expenditures had been previously approved within the City budget.

Cause: State and Local Fiscal Recovery Funds related to the coronavirus relief funding was received in advance as emergency funding. The City did not follow all required compliance in using the funding in response to the emergency.

Repeat Finding: This is not a repeat finding.

Recommendation: CLA recommends that City implement procedures to ensure that federal guidance is followed relating to procurement and debarment.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding. The City will provide additional training to individuals responsible for procurement and related debarment requirements.

WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2021 CliftonLarsonAllen LLP
July 27, 2023
City of McFarland
Presentation of Audit Reports
June 30, 2022
©2021 CliftonLarsonAllen LLP
Agenda
• Purpose of our Audit
• Summary of Audit Results by Engagement
• Required Audit Communication to Governance
• Recent Governmental Accounting Standards Board (GASB) Pronouncements
2 ©2021 CliftonLarsonAllen LLP
Purpose of Our Audit
• Express opinions providing reasonable, but not absolute, assurance whether the City’s financial statements are free from material misstatement whether due to fraud or error 3 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results by Engagement
Engagement Opinion on Financial
Statements
Audit Findings
City Financial Statements Unmodified -5 Material weaknesses identified
-1 instance of
noncompliance
4 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results by Engagement (continued)
Engagement Opinion on Compliance over
Major Federal Programs
Opinion on I/C
over Major
Federal Programs
Audit Findings
Single Audit Unmodified Unmodified 2022-006 Bid process and debarment checks
not performed
5 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results: Recap of Findings
Engagement Type Account Condition Recommendation
Financial Statements MW
2022-001
Various
(cash,
prepaids,
capital assets,
receivables,
etc.)
The City did not have adequate design of internal
controls over significant processes such as
performing monthly reconciliations.
1) Establish procedures for reconciling the general
ledger accounts for cash, receivables, capital assets
and long-term liabilities to supporting
documentation on a monthly basis.
2) Prepare a year-end closing schedule and include all
tasks that are necessary to close the year-end. Such
a list should include, at a minimum: a list of year-end tasks, due date of each task, and the responsible
employee and management reviewer of each task.

Financial Statements MW
2022-002
Cash Monthly bank reconciliations were not completed
timely during the year.

Complete and review bank reconciliations timely.

Financial Statements MW
2022-003
Accounts
Receivable
Accounts receivable and revenue were
understated by $2,817,488 in the General Fund for
conditional use permits and engineering fees.

Accounts receivable and revenue were also
understated by $23,701 in the road fund for road
rehabilitation funding.

Perform additional review at year end to ensure all
accruals are captured.
6 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results: Recap of Findings
Engagement Type Account Condition Recommendation
Financial Statements MW
2022-004
Vacation
Liability
Long term accruals for vacation liabilities were
recorded in the fund statements but should only
be included at the government wide level.

Only record vacation liabilities as part of the preparation of year end government wide statements.

Financial Statements MW
2022-005
Federal Grants
- SEFA
Adjustments were required to recognize ALN
#16.710 Public Safety Partnership and Community
Policing Grants in the Schedule of Expenditures of
Federal Awards.

Provide additional training to departments and perform
review to ensure grants are reported accurately and
timely.
7 ©2021 CliftonLarsonAllen LLP
Required Audit Communication
Matter to be Communicated Auditors’ Response
Accounting Policies • Significant accounting policies are described in Note 1. • No new accounting policies and no significant changes.

Accounting Estimates • No significant estimates identified.

Corrected Misstatements • Various adjustments related to cash, prepaids, capital assets, long-term debt, revenues and expenditures.

Disagreements with Management • No disagreements with management Consultations with Other Accountants • No consultations with other accountants 8 ©2021 CliftonLarsonAllen LLP
Required Audit Communication (continued)
Matter to be Communicated Auditors’ Response
Fraud and Illegal Acts • None identified
Significant Difficulties Encountered During the Audit • None identified Other Information in Documents Containing Audited Financial Statements
• Communicated responsibilities with respect to required supplementary information (RSI), supplementary
information (combining fund statements and the schedule of expenditures of federal awards (SEFA)
Management Representations • Management provided us with a signed copy of the management representation letter upon completion of each engagement
9 ©2021 CliftonLarsonAllen LLP
Recent Governmental Accounting Standards Board
(GASB) Pronouncements
GASB Statement No. 96:

Subscription Based Information
Technology Arrangements
• Effective for fiscal year 2022/23.
10 CLAconnect.com
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12 CITY OF MCFARLAND

STAFF REPORT
TO: Honorable Mayor and Council Members
FROM: Kenny Williams, City Manager
Florentine S. Ortiz, Public Works Director
DATE: July 27, 2023
SUBJECT: Report, Discuss, and Possible Approval of Resolution No. 2023-0090, accepting the lowest responsive and responsible Bid and Award of a contract to Bowman Asphalt, Inc. in the amount of $799,565.00 for the 2023 Street Rehabilitation - Various Locations project and authorize the City Manager to execute the agreement; Allocate funds for the Bid, and up to $159,914.00 for Contingency, Construction Management and Materials Sampling & Testing
SUMMARY:

The City of McFarland has identified Ebell St. from Woodruff Ave. to Mast Ave.; Wiley St.: from E. Sherwood Ave. to Robertson Ave. and San Juan St. from E. Sherwood Ave. to E. Perkins Ave., as needing major rehabilitation. These streets exhibit a paved surface and structure that is in extremely poor condition, consisting of alligator cracking, block cracking, and asphalt failure creating a hazardous surface that is well beyond its useful life. (See attached site map).

The city published a Notice to Contractors, for Constructions bids on June 09, 2023, and on July 13, 2023 at 2:15 PM. the City Clerk opened sealed bids. A total of six (6) bids were received. The following is the tabulation of the bids received:

Company Bid Amount
Bowman Asphalt, Inc. $ 799,565.00
Central Valley Asphalt $ 805,390.10
Emmett Valley Construction $ 850,771.20
MAC General Eng. $ 917,521.31
Griffith Company $ 953,735.00
Burtch Construction $ 964,188.00
Attached is the Bid Summary for the three lowest bids
The Project Engineer (BHT Engineering, Inc.) has reviewed and qualified the lowest responsive and responsible bidder, Bowman Asphalt. See attached low bid analysis. The City is allowing 30 working days for the contractor to complete the project.

RECOMMENDATION:

Staff recommends City Council approve Resolution No. 2023-0090 accepting the lowest responsive and responsible bid, award the project and to execute a construction agreement with Bowman Asphalt, Inc. in the amount of $799,565.00 for the 2023 Street Rehabilitation - Various Locations project and authorize the City Manager to execute the construction agreement.

Additionally, Staff recommends the approval in the amount of $79,957.00 for Construction Contingencies and $79,957.00 for Construction Management and Materials Sampling & Testing; crucial to the successful completion of the project. These funds will be utilized for unforeseen work that may arise during the construction process which was unforeseen at the time of bidding and for Construction Management/Observation to further guarantee that the City and its residents receive a quality product acceptable in quality, nature, and construction method.

FISCAL IMPACT:

ATTACHMENTS:

Resolution No. 2023-0090
Bid Summary
Low Bid Analysis
Site Map
Construction Agreement
Costs: Bid Construction Total: $ 799,565.00
10% Contingency: $ 79,957.00
Construction Management and Materials
Sampling & Testing:
$ 79,957.00
Total Construction Phase Cost: $ 959,479.00
Funding: Local Match (100%):

Transportation Development Act $ 959,479.00
BHT ENGINEERING, INC.

Civil Engineering & Construction Management
218 S. “H” Street, Ste. 201
Bakersfield, CA 93304
(661) 558-4641
T:\6-McFARLAND\DOC\2022 Projects\22603 - Ebell St - Woodruff to Mast\BIDDING PHASE\Low Bidder Qualification\McFarland - 2023 Street Rehab - Low Bid Analysis.doc Page 1 of 2
Memorandum
Transmitted by email on 07/21/23
[email protected]
[email protected]
TO: Florentine S. Ortiz
City of McFarland, Public Works Director
401 W. Kern Ave.

McFarland, CA 93250
FROM: Juan M. Pantoja
Project Manager / Engineer
DATE: July 21, 2023
SUBJECT: Lowest Responsive Bid Analysis for the 2023 Street Rehabilitation - Various Locations, project.

A. The City of McFarland received a total of SIX (6) bids for the subject project. Bids were opened on July 13, 2023 at 2:15 pm, by the City Clerk, Francisca Alvarado. Bids ranged from a low of $799,565.00. to a high of $964,188.00; with an average bid of $881,861.77. The 6 received bids are:

Company Bid Amount
Bowman Asphalt $ 799,565.00
Central Valley Asphalt $ 805,390.10
Emmett Valley Construction $ 850,771.20
MAC General Eng. $ 917,521.31
Griffith Company $ 953,735.00
Burtch Construction $ 964,188.00
Bowman Asphalt submitted the apparent low bid of $799,565.00, which was about 9% lower than the engineer's estimate of $879,189.00. The highest bid of $964,188.00 was about 10% higher than the engineer’s estimate.

B. BHT Engineering, Inc. proceeded to qualify the lowest responsive bidder Bowman Asphalt and verified the bidder's proposal as follows:

1. The low bidder submitted the proposal on the required forms and provided all requested information.

2. The low bidder computed the total amount bid and extended amounts correctly.

3. BHT Staff verified with the State Contractor’s License Board (http://www.cslb.ca.gov/) and the California Department of Industrial Relations (Registrations (salesforce-sites.com) that the low bidder and all subcontractors hold current and active State Contractor’s Licenses and are registered with the DIR, as follows:

Contractor Name License No. & Class License Expiration
Date DIR Regis. No.

Bowman Asphalt, Inc. 862672
A 08/31/2023 1000003010
Harker, Inc.
dba Harker Striping & Signage
615222
C32 04/30/2025 1000004812
T:\6-McFARLAND\DOC\2022 Projects\22603 - Ebell St - Woodruff to Mast\BIDDING PHASE\Low Bidder Qualification\McFarland - 2023 Street Rehab - Low Bid Analysis.doc Page 2 of 2

4. BHT Staff verified that the low bidder’s Workers' Compensation Insurance coverage is current.

5. A proposal guarantee accompanied the proposal in the form of a Bid Bond totaling ten percent (10%) of the bid. The low bidder signed and properly notarized the Bid Bond. The surety agent is Travelers Casualty and Surety Company of America.

6. BHT Staff verified through the State Department of Insurance website (https://interactive.web.insurance.ca.gov/companyprofile/companyprofile) that the Bonding Company, Travelers Casualty and Surety Company of America, is an admitted surety in the State of California.

7. BHT Engineering, Inc. verified that neither the low bidder nor any of its key personnel appear on the Federal or State debarment lists (https://www.sam.gov/SAM/; https://www.dir.ca.gov/dlse/debar.html)

8. The low bidder has successfully completed several recent projects in Southern California, including a project in McFarland, the W. Kern Ave. Reconstruction and 6th Street Overlay, completed on September 23, 2021.

C. Recommendation of Award:

Bowman Asphalt is the lowest responsive bidder based on the stated basis of award. If a construction contract is awarded, it is recommended that the contract be awarded to Bowman Asphalt.

Attachments: Bid Summary
Bid Opening Checklist
Contractor’s License verification
Contractor and Subcontractor’s (DIR) Registration number Bonding Company Information
System for Award Management (SAM) report
DLSE Debarments list

BHT Job # 22603, 22604 22605
BID OPENING: JULY 13, 2023 @ 2:15 PMSIX (6) BIDS TOTAL RECEIVED. Three (3) Lowest Bids Shown ITEM UNIT OF EST. UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL NO. MEASURE QNTY. COST COST COST COST COST COST COST COST 1 SITE DEMOLITION, HAUL-OFF EXCESS MATERIAL L.S. 1 $ 40,000.00 40,000.00 $ 42,345.05 $ 42,345.05 $ 62,580.00 $ 62,580.00 $ 16,000.00 $ 16,000.00 $ 2 COLD PLANE ± 3" OF EXISTING SURFACE, PROOF ROLL SUBGRADE S.F. 210,283 $ 94,627.00 0.45 $ 0.40 $ 84,113.20 $ 0.20 $ 42,056.60 $ 0.40 $ 84,113.20 $ 3 TYPE B HOT MIX ASPHALT TON 4100 $ 451,000.00 110.00 $ 91.00 $ 373,100.00 $ 98.00 $ 401,800.00 $ 120.00 $ 492,000.00 $ 4 APPLY FOG SEAL ON NEW PAVEMENT L.S. 1 $ 7,500.00 7,500.00 $ 6,400.00 $ 6,400.00 $ 9,000.00 $ 9,000.00 $ 10,000.00 $ 10,000.00 $ 5 INSTALL CURB & GUTTER - (INCLUDES SAWCUT, LAYOUT, DEMOLITION OF EXISTING IMPROVEMENTS, SCARIFY 12" NATIVE MATERIAL, GRADE, & COMPACT TO 90%) L.F. 602 $ 42,140.00 70.00 $ 100.00 $ 60,200.00 $ 92.00 $ 55,384.00 $ 95.00 $ 57,190.00 $ 6 INSTALL ADA CURB RAMP (INCLUDES SAWCUT, LAYOUT, DEMOLITION OF EXISTING IMPROVEMENTS, SCARIFY 12" NATIVE MATERIAL, GRADE, & COMPACT TO 90%) EA. 17 $ 76,500.00 4,500.00 $ 5,255.00 $ 89,335.00 $ 4,353.00 $ 74,001.00 $ 4,000.00 $ 68,000.00 $ 7 INSTALL 8" THICK CONCRETE APRON (INCLUDES SAWCUT, LAYOUT, DEMOLITION OF EXISTING IMPROVEMENTS, SCARIFY 12" NATIVE MATERIAL, GRADE, & COMPACT TO 90%) S.F. 62 $ 2,480.00 40.00 $ 49.00 $ 3,038.00 $ 92.50 $ 5,735.00 $ 95.00 $ 5,890.00 $ 8 INSTALL WHITE THERMOPLASTIC PAVEMENT MARKINGS S.F. 352 $ 5,280.00 15.00 $ 14.00 $ 4,928.00 $ 10.00 $ 3,520.00 $ 10.00 $ 3,520.00 $ 9 INSTALL LIMIT LINE - THERMOPLASTIC L.F. 331 $ 1,986.00 6.00 $ 3.75 $ 1,241.25 $ 6.00 $ 1,986.00 $ 6.00 $ 1,986.00 $ 10 INSTALL 12" YELLOW CROSSWALK LINE - THERMOPLASTIC L.F. 334 $ 2,672.00 8.00 $ 4.00 $ 1,336.00 $ 6.00 $ 2,004.00 $ 6.00 $ 2,004.00 $ 11 INSTALL 6" YELLOW CENTER LINE (DETAIL 2) - THERMOPLASTIC L.F. 4818 $ 9,636.00 2.00 $ 1.00 $ 4,818.00 $ 2.00 $ 9,636.00 $ 2.00 $ 9,636.00 $ 12 INSTALL 6" YELLOW CENTER LINE (DETAIL 22) - THERMOPLASTIC L.F. 1300 $ 6,500.00 5.00 $ 2.50 $ 3,250.00 $ 3.25 $ 4,225.00 $ 3.00 $ 3,900.00 $ 13 INSTALL ON-STREET PARKING STALL STRIPING L.F. 353 $ 2,118.00 6.00 $ 3.50 $ 1,235.50 $ 3.50 $ 1,235.50 $ 4.00 $ 1,412.00 $ 14 FURNISH AND INSTALL SOLAR-POWERED FLASHING LED STOP SIGN - R1-1 (30"X30") EA. 15 $ 45,000.00 3,000.00 $ 3,000.00 $ 45,000.00 $ 2,500.00 $ 37,500.00 $ 2,600.00 $ 39,000.00 $ 15 FURNISH AND INSTALL - PROJECT FUNDING SIGN FOR SB1 - C48 (CA) (48"x30") EA. 6 $ 4,800.00 800.00 $ 950.00 $ 5,700.00 $ 1,000.00 $ 6,000.00 $ 500.00 $ 3,000.00 $ 16 SALVAGE/RE-INSTALL EXISTING SIGN EA. 14 $ 2,800.00 200.00 $ 375.00 $ 5,250.00 $ 270.00 $ 3,780.00 $ 250.00 $ 3,500.00 $ 17 FURNISH AND INSTALL BLUE FIRE HYDRANT MARKER EA. 2 $ 50.00 25.00 $ 25.00 $ 50.00 $ 14.00 $ 28.00 $ 400.00 $ 800.00 $ 18 ADJUST SEWER MANHOLE TO NEW GRADE EA. 8 $ 16,000.00 2,000.00 $ 1,700.00 $ 13,600.00 $ 2,160.00 $ 17,280.00 $ 900.00 $ 7,200.00 $ 19 ADJUST MONUMENT/WATER VALVE TO NEW GRADE EA. 11 $ 19,250.00 1,750.00 $ 1,400.00 $ 15,400.00 $ 1,615.00 $ 17,765.00 $ 900.00 $ 9,900.00 $ 20 FURNISH AND INSTALL TREE ROOT BARRIER L.F. 17 $ 850.00 50.00 $ 225.00 $ 3,825.00 $ 162.00 $ 2,754.00 $ 160.00 $ 2,720.00 $ 21 RELOCATE/ADJUST IRRIGATION SYSTEM - IN KIND L.F. 60 $ 3,000.00 50.00 $ 40.00 $ 2,400.00 $ 52.00 $ 3,120.00 $ 50.00 $ 3,000.00 $ 22 PREPARE AND IMPLEMENT SWPPP L.S. 1 $ 5,000.00 5,000.00 $ 3,000.00 $ 3,000.00 $ 12,000.00 $ 12,000.00 $ 4,000.00 $ 4,000.00 $ 23 TEMPORARY TRAFFIC CONTROL L.S. 1 $ 40,000.00 40,000.00 $ 30,000.00 $ 30,000.00 $ 32,000.00 $ 32,000.00 $ 22,000.00 $ 22,000.00 $ Date Updated: 07/14/23. By: JMP TOTAL BASE BID: 879,189.00 $ $ 805,390.10 799,565.00 $ 850,771.20 $ 123
Emmett Valley Construction
Fresno, CA (559) 408‐5908
Lic No. 913590

ITEM DESCRIPTION

CITY OF MCFARLAND - BID SUMMARY
2023 STREET REHABILITATION - VARIOUS LOCATIONS
Engineer's Estimate
Bowman Asphalt, Inc
Bakersfield, CA (661) 334‐1356
Lic No. 862672
Central Valley Asphalt
Lindsay, CA (559) 562‐7802
Lic No. 777434

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