Draft
Additional notes
Terms and Conditions
1) Legally Binding Agreement. This Quote, once signed below by the Client and received by Fleet Complete, shall become a legally binding noncancellable order documented herein (an “Order”, and this document shall be an “Order Form”). 2) Interpretation. Unless otherwise defined in this Order Form, capitalized terms used in this Order Form shall have the meaning given in the Master Subscription Service Terms.
3) Entire Agreement; Order of Precedence. This Order Form incorporates by reference the: (i) Master Subscription Service Terms; (ii) End User License Agreement (including but not limited to the Fleet Complete Vision Mobile App EULA); (iii) Limited Hardware Warranty; (iv) Self-Installation Limited Liability Agreement; (v) Support Terms; and, (vi) Third Party Terms. All of the foregoing can be found at www.fleetcomplete.com/legal, as may be amended from time to time in accordance with their terms (collectively, the “Agreement”). The Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes and replaces any prior verbal agreements or other understandings, whether written or oral between the Parties. Any terms and conditions presented by the Client shall not be recognized by Fleet Complete. In the event of any inconsistency or conflict between the statements made in Agreement, the following order of precedence governs: (i) Third Party Terms (ii) this Order Form (iii) Master Subscription Service Terms; (iv) End User License Agreement (including but not limited to the Fleet Complete Vision Mobile App EULA); (v) Product Hardware Warranty; (vi) Self-Installation Limited Liability Agreement; (vii) Support Terms. 4) Contract Term. The term of the Agreement shall commence on the earlier of the date the Order Form is signed by the Client or when the Software is enabled on the Fleet Complete servers (the “Provisioning Date”) and the term of the Subscription(s) shall commence on the Provisioning Date and, unless terminated earlier pursuant to this Agreement's express provisions, the Agreement and Subscription(s) will continue in effect for the ‘Initial Contract Term’ identified in the Order Form or, where no ‘Initial Contract Term’ is listed on an Order Form, for thirty six (36) months (“Initial Contract Term”). This Agreement and Subscription(s) will automatically renew for successive one (1) year terms unless earlier terminated pursuant to this Agreement's express provisions or either Party gives the other Party written notice of non-renewal at least sixty (60) days prior to the expiration of the then-current term (each a "Renewal Term" and together with the Initial Contract Term, the "Contract Term").
The Contract Term may also be extended in accordance with Section 5.11 of the Master Subscription Service Terms, as applicable. 5) Fees; Payment Terms; Additional Fees; Early Termination Fee. The (a) Total Upfront Fee and (b) all Recurring Fees for the first year of the Initial Contract Term must be paid by the Client in advance of Fleet Complete shipping any Hardware and all such additional Recurring Fees thereafter during the Contract Term shall be invoiced in advance on an annual basis by Fleet Complete. All Recurring Fee payments are due upon receipt of applicable invoice by Client. Recurring Fees will be effective and commence as of the Provisioning Date. All fees payable by Client to Fleet Complete under the Agreement (collectively “Fees”) shall apply during the Contract Term provided that Client agrees that (a) once per year during the Contract Term Fleet Complete reserves the right at its sole discretion to increase Fees and/or introduce new fees, in both instances by providing written notice to Client at least thirty (30) calendar days prior to the effective date of such Fee increase or fee introduction and in accordance with Section 11.2 of the Master Subscription Service Terms, and (b) Client’s Recurring Fees, as calculated from the Client’s latest invoice, will automatically increase by an amount of five percent (5%) for each year of previous Initial Contract Term or Renewal Term (as applicable) upon the commencement of an automatic Renewal Term. No increase in Fees or introduction of a new fee is effective unless made in compliance with the provisions of this Section 5. Client acknowledges that allowing Fleet Complete flexibility to raise Fees or introduce new fees is in the Client's as well as the Fleet Complete's interest, as it allows for Fleet Complete’s continual commitment to provide services during the Contract Term. In certain circumstances additional fees for installation(s) and/or excessive Client data usage in relation to the Services may apply. In the event the Client terminates or purports to terminate the Agreement prior to the end of the then current Contract Term other than as may be permitted in the Agreement, Client shall pay Fleet Complete the total aggregate amount of the Recurring Fee(s) multiplied by the number of months remaining in the then-current Contract Term, plus applicable taxes and additional applicable Fees in the Agreement (“Early Termination Fee”). The Parties intend the Early Termination Fee to constitute compensation and not a penalty. The Parties acknowledge and agree that the Early Termination Fee is a reasonable estimate of the anticipated or actual harm or actual damages that might arise from a Client terminating the Agreement early.
Additional taxes and fees may apply (please see www.fleetcomplete.com/feetransparency). 6) Payment Method/Credit Check. Recurring Fee payments due to Fleet Complete require pre-approved debits (“PAD”) or automatic Credit Card payment subject to a transaction processing fee. Client hereby consents to Fleet Complete conducting a credit rating check on the Client. Payments and deposits are non-refundable.
7) Delivery Dates are Estimates Only. Standard orders are normally shipped within three (3) to four (4) business days, however, shipping and delivery dates are not guaranteed and may be subject to change. 8) To explore our product catalogue for more information, visit https://www.fleetcomplete.com/guides/productguide.pdf Please electronically sign or manually sign and return this Order Form via email to your Fleet Complete representative.
Client Authorized Printed Name:
Client Authorized Signature:X
Date:
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v. 03/14/2022
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 13.
Section: PUBLIC HEARINGS
Meeting Date: April 11, 2024
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Paul Saldaña , Community Development Director
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 009-2024 AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MCFARLAND
AMENDING TITLE 2, CHAPTER 2.40 OF THE MUNICIPAL CODE RELATING TO THE PLANNING COMMISSION.
SUMMARY:
On February 27, 2024 during Commission comments, the Planning Commission engaged in a conversation regarding the applicability and necessity of the role of the Planning Commission in the City of McFarland. While no vote was taken, several members indicated that their may be some value in eliminating the Planning Commission.
Government Code Section 65101 provides the authority for the City Council to establish a Planning Commission and set the membership, selection and responsibilities to the commission. The ordinance establishing the Planning Commission was adopted in 2016.
State statute does not require the City to establish a planning commission, but does require the City to provide for the following local planning functions, sometimes assigned to commissions and sometimes assigned to staff or a hybrid of the two:
Prepare and update the City's General Plan
• Review the City's capital improvement program for concurrence with the General Plan • Implement the City's zoning and subdivision ordinance • Review development plans for conformance with zoning and development standards.
Agencies that operate without a Planning Commission have established a Zoning Administrator to conduct hearings on matters with the ability to appeal to the City Council, providing for public input into development projects while reserving the responsibility of the City Council to make final decisions regarding such projects.
The discussion of the Planning Commission was referred to the Public Policy & Finance Committee of the City Council on February 29, 2024. Following discussion of the Committee, the consensus of the Committee was to recommend the City Council consider replacing the Planning Commission with the role of Zoning Administrator.
The draft ordinance would amend Chapter 2.40 of the Municipal Code removing language referencing the Planning Commission and establishing the role of Zoning Administrator. The Ordinance also directs staff to initiate a change to the Municipal Code to conform chapters related to zoning and development to the new change.
On March 14, 2024 the City Council conducted a public hearing and following public comment, introduced Ordinance 009-2024 for adoption. On March 28, 2024 the City Council tabled second reading until the next scheduled Council meeting. The City Council ad-hoc committee is meeting with the Planning Commission members on April 9 and will provide additional feedback.
FINANCIAL IMPACT:
No fiscal impact.
RECOMMENDATION:
City Council waive reading of Ordinance and adopt Ordinance 009-2024.
ATTACHMENTS:
None
ORDINANCE NO. 9-2024
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MCFARLAND AMENDING TITLE 2, CHAPTER 2.40 OF THE
MUNICIPAL CODE RELATING TO THE PLANNING COMMISSION.
Section 1. Recitals
WHEREAS, Government Code Section 65101 provides the authority for the City Council to establish a Planning Commission and set the membership, selection and responsibilities to the commission; and
WHEREAS, the City Council has received input from Planning Commission as to their role; and
WHEREAS, the Public Policy and Finance Committee of the City Council considered information discussed by the Planning Commission in addition to input of staff of the necessity of the Commission and the options available to fulfill planning responsibilities of the City; and WHEREAS, it is the desire of the City Council to transfer some roles currently under the responsibility of the Planning Commission and to reserve some responsibilities for the City Council; and
WHEREAS, the establishment of a Zoning Administrator will allow the City to fulfill its planning responsibilities while providing for public input into the planning process.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MCFARLAND DOES ORDAIN AS FOLLOWS:
Section 1. Section 2.40 of the McFarland Municipal Code is hereby amended and restated to read as follows:
2.40.010 Zoning Administrator
A. Pursuant to State Government Code, there is hereby created and established in the City of McFarland the position of Zoning Administrator. The Community Development Director shall serve as the Zoning Administrator, however, the City Manager shall have the right to delegate the duties separately.
B. Powers and Duties. The Zoning Administrator shall have the power and duty to review and make decisions on those application types identified in the Municipal Code that are identified as duties of the Zoning Administrator, Planning Director, Planning Commission or City Planner.
C. Meetings: The Zoning Administrator shall adopt rules and procedures governing meeting business, conduct actions within the Zoning Administrator’s jurisdiction and setting timeframes for such meetings. All meetings shall conform to the Brown Act and be open to the public.
Section 2. All other portions of Chapter 2.40 - Planning Commission, are hereby revoked.
Section 3. The City Council directs the City Manager or designee to recommend changes to the Municipal Code to effectuate the change from a Planning Commission to Zoning Administrator.
Section 4. 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 5. Effective Date. This Ordinance shall take effect thirty days after its adoption pursuant to California Government Code section 36937.
Section 6. 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 , by the following vote:
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on 3/28/2024 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez
______________________________
Francisca Alvarado, City Clerk
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 April 11, 2024.
ATTEST:
________________________________
Saul Ayon, Mayor
APPROVED AS TO FORM:
_______________________________
Francisca Alvarado, City Clerk
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 14.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: April 11, 2024
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
SUBJECT: RECEIVE AND FILE THE CITY OF MCFARLAND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2023.
SUMMARY:
Clifton Larson Allen LLP (CLA) has prepared the Audited Financial Statements for the period ending June 30, 2023. 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, 2023, 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, 2023, are fairly presented in conformity with generally accepted accounting principles.
FINANCIAL IMPACT:
None.
RECOMMENDATION:
Staff Recommends the City Council of the City of McFarland receive and file the audited financial statements for the period ended June 30, 2023.
ATTACHMENTS:
1. 2023 Final Financial Statements
2. 2023 Final Single Audit report
3. 2023 McFarland City Council Presentation 4.11.2024
CITY OF MCFARLAND
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2023
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF MCFARLAND
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE – STATEMENT OF NET POSITION 5
GOVERNMENT-WIDE – STATEMENT OF ACTIVITIES 6
BALANCE SHEET – GOVERNMENTAL FUNDS 7
RECONCILIATION OF GOVERNMENTAL FUNDS – BALANCE SHEET
TO GOVERNMENT-WIDE STATEMENT OF NET POSITION –
GOVERNMENTAL ACTIVITIES 8
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – GOVERNMENTAL FUNDS 9
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS TO
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES – GOVERNMENTAL
ACTIVITIES 10
STATEMENT OF NET POSITION – PROPRIETARY FUNDS 11
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION – PROPRIETARY FUNDS 12
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 13
STATEMENT OF NET POSITION – FIDUCIARY FUND 15
STATEMENT OF CHANGES IN NET POSITION – FIDUCIARY FUND 16 NOTES TO BASIC FINANCIAL STATEMENTS 17
CITY OF MCFARLAND
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 45
BUDGETARY COMPARISON SCHEDULE – TDA-LTF – MAJOR SPECIAL REVENUE FUND 46
BUDGETARY COMPARISON SCHEDULE – GAS TAX – MAJOR
SPECIAL REVENUE FUND 47
BUDGETARY COMPARISON SCHEDULE – DEVELOPMENT IMPACT –
MAJOR SPECIAL REVENUE FUND 48
BUDGETARY COMPARISON SCHEDULE – MISCELLANEOUS GRANTS
– MAJOR SPECIAL REVENUE FUND 49
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 50
COMBINING FUND STATEMENTS
COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL
FUNDS 52
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL
FUNDS 53
FINANCIAL SECTION
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof 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 standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical 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.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective July 1, 2022, the City of McFarland adopted new accounting guidance for Subscription-Based Information Technology Arrangements (SBITAs). The guidance requires entities to recognize a right-to-use subscription asset and corresponding subscription liability for all SBITAs 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 or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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 opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
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 consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has omitted management’s discussion and analysis, that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such 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 collectively comprise the City’s basic financial 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. 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 GAAS. 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 March 20, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Roseville, California
March 20, 2024
(4)
BASIC FINANCIAL STATEMENTS
CITY OF MCFARLAND
GOVERNMENT-WIDE – STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(5)
Governmental-Type Business-Type
Activities Activities Totals
ASSETS
Cash and Investments 6,348,481 $ 9,878,106 $ 16,226,587 $ Cash with Fiscal Agents - Restricted 3,738,872 65,795 3,804,667 Receivables:
Accounts 188,382 1,193,001 1,381,383
Intergovernmental 3,220,177 3,979 3,224,156
Interest - 1,816 1,816
Taxes 173,345 - 173,345
Leases 14,366 158,789 173,155
Prepaids and Other Assets 4,127 5,097 9,224
Internal Balances (18,544) 18,544 -
Loans Receivable 3,570,613 - 3,570,613
Land Held For Resale 446,593 - 446,593
Capital Assets:
Nondepreciable/Nonamortizable 5,390,142 1,355,026 6,745,168 Depreciable, Net 30,106,468 14,768,847 44,875,315
Right-to-Use Assets, Net 149,787 - 149,787
Total Assets 53,332,809 27,449,000 80,781,809
LIABILITIES
Accounts Payable 659,650 294,610 954,260
Accrued Liabilities 49,031 33,608 82,639
Interest Payable 53,667 16,478 70,145
Deposits Payable 152,563 21,139 173,702
Unearned Revenue 2,188,072 172,771 2,360,843
Long-Term Liabilities:
Due Within One Year 229,541 266,316 495,857
Due in More than One Year 5,174,003 4,834,105 10,008,108 Total Liabilities 8,506,527 5,639,027 14,145,554
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Leases 14,362 153,694 168,056
NET POSITION
Net Investment in Capital Assets 33,567,528 11,047,873 44,615,401 Restricted for:
General 177,103 - 177,103
Streets and Roads 1,575,239 - 1,575,239
Community Development 8,006,335 - 8,006,335
Debt Service 227,732 65,795 293,527
Unrestricted 1,257,983 10,542,611 11,800,594
Total Net Position 44,811,920 $ 21,656,279 $ 66,468,199 $ Primary Government
CITY OF MCFARLAND
GOVERNMENT-WIDE – STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Fees, Fines, and Operating Capital Governmental- BusinessCharges for Grants and Grants and Type Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government:
Governmental-Type Activities:
General Government 295,831 $ 881,452 $ - $ - $ 585,621 $ - $ 585,621 $ Public Safety 393,696 4,763,477 1,217,967 - - (3,151,814) (3,151,814) Public Works 1,683,314 12,288 1,655,767 2,290,001 2,274,742 - 2,274,742 Community Development 539,872 639,632 222,623 - 322,383 - 322,383 Interest on Long-Term Debt 143,591 - - - - (143,591) (143,591) Total Governmental-Type
Activities 7,426,085 1,927,068 3,096,357 2,290,001 - (112,659) (112,659) Business-Type Activities:
Sewer 1,949,335 2,071,510 38,440 - - 160,615 160,615
Refuse 1,382,641 1,441,687 - - - 59,046 59,046
Water 2,186,733 2,004,204 - - - (182,529) (182,529)
Public Transportation 116,920 - 121,878 - - 4,958 4,958 Total Business-Type Activities 5,635,629 5,517,401 160,318 - - 42,090 42,090 Total Primary Government 13,061,714 $ 7,444,469 $ 3,256,675 $ 2,290,001 $ 42,090 (112,659) (70,569)
GENERAL REVENUES AND TRANSFERS
General Revenues:
Taxes:
Property Taxes 836,524 - 836,524
Sales and Use Taxes 801,079 - 801,079
Franchise Taxes 213,241 - 213,241
Intergovernmental, Unrestricted:
Motor Vehicle In-Lieu Tax 1,595,463 - 1,595,463
Interest and Investment Earnings 113,010 60,319 173,329 Lease Revenue - 60,414 60,414
Miscellaneous 240,913 - 240,913
Transfers 102,467 - (102,467)
Total General Revenues and Transfers 3,902,697 18,266 3,920,963 CHANGE IN NET POSITION 60,356 3,790,038 3,850,394Net Position - Beginning of Year 21,595,923 41,021,882 62,617,805 NET POSITION - END OF YEAR $ 21,656,279 44,811,920 $ 66,468,199 $ Program Revenues Primary Government
Changes in Net Position
Net Revenues (Expenses) and
CITY OF MCFARLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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McFarland Other
General Development Miscellaneous Improvement Governmental Fund TDA-LTF Gas Tax CalHOME Impact Grants Authority Funds Total ASSETS
Cash and Investments 132,416 $ 237,858 $ 538,085 $ 266,449 $ 989,899 $ 2,389,679 $ 538,587 $ 1,255,508 $ 6,348,481 $ Cash with Fiscal Agent - Restricted - - - - - - 3,738,872 - 3,738,872 Receivables:
Accounts 129,577 - 27,025 - - - - 31,780 188,382
Intergovernmental 2,153,101 573,906 - - - 2,588 - 490,582 3,220,177 Taxes 173,345 - - - - - - - 173,345
Leases 14,366 - - - - - - - 14,366
Prepaid Items 4,127 - - - - - - - 4,127
Due from Other Funds 1,213,430 - - - 1,209,542 - - - 2,422,972 Loans Receivable - - - 2,860,707 - - - 709,906 3,570,613 Land Held for Resale 446,593 - - - - - - - 446,593
Total Assets 4,266,955 $ 811,764 $ 565,110 $ 3,127,156 $ 2,199,441 $ 2,392,267 $ 4,277,459 $ 2,487,776 $ 20,127,928 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 649,868 $ - $ - $ - $ - $ 600 $ - $ 9,182 $ 659,650 $ Accrued Liabilities 48,324 - - - - - - 707 49,031
Deposits Payable 152,563 - - - - - - - 152,563
Due to Other Funds 124,043 722,442 - - - 26,908 501,698 997,560 2,372,651 Advances from Other Funds 68,865 - - - - - - - 68,865
Unearned Revenue - - - - - 2,187,656 - 416 2,188,072
Total Liabilities 1,043,663 722,442 - - - 2,215,164 501,698 1,007,865 5,490,832
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 2,105,832 573,906 - 2,861,108 - - - 709,906 6,250,752 Related to Leases 14,362 - - - - - - - 14,362
Total Deferred Inflows of Resources 2,120,194 573,906 - 2,861,108 - - - 709,906 6,265,114
FUND BALANCES
Nonspendable 450,720 - - - - - - - 450,720
Restricted - - 565,110 266,048 2,199,441 177,103 3,775,761 870,264 7,853,727 Assigned 2,112,278 - - - - - - - 2,112,278
Unassigned (1,459,900) - (484,584) - - - - (100,259) (2,044,743) Total Fund Balances 1,103,098 565,110 (484,584) 266,048 2,199,441 177,103 3,775,761 770,005 8,371,982 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 4,266,955 $ 811,764 $ 565,110 $ 3,127,156 $ 2,199,441 $ 2,392,267 $ 4,277,459 $ 2,487,776 $ 20,127,928 $
CITY OF MCFARLAND
RECONCILIATION OF GOVERNMENTAL FUNDS
BALANCE SHEET TO GOVERNMENT-WIDE STATEMENT OF NET POSITION
GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Fund Balance - Total Governmental Funds 8,371,982 $
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. 35,646,397 Some of the City’s revenue is not available to pay for current period expenditures and therefore are not reported in the governmental funds balance sheet. 6,250,752 Interest on long-term debt is recognized as it accrues, regardless of when it is due. (53,667) 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) (4,424,628)
Notes Payable (814,376)
Lease Payable (75,002)
SBITA Payable (25,958)
Compensated Absences (63,580)
Net Position of Governmental Activities 44,811,920 $
CITY OF MCFARLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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McFarland Other
General Development Miscellaneous Improvement Governmental Fund TDA-LTF Gas Tax CalHOME Impact Grants Authority Funds Total
REVENUES
Taxes 3,010,197 $ - $ - $ - $ - $ - $ - $ 436,110 $ 3,446,307 $ Licenses and Permits 384,681 - - - 433,888 - - - 818,569 Fines and Forfeitures 52,792 - - - - - - - 52,792Use of Money and Property - 27,298 - - - - 377,049 187 404,534 Intergovernmental Revenues 592,898 97,735 370,059 - - 1,214,575 - 1,060,258 3,335,525 Charges for Services 764,183 - - - - - - - 764,183
Contributions 109,580 - - - - - - - 109,580
Other Revenues 131,333 - - - - - - - 131,333
Total Revenues 5,072,962 97,735 370,059 - 433,888 1,214,575 377,049 1,496,555 9,062,823
EXPENDITURES
Current:
General Government 955,359 - - - - 550,955 - 155,013 1,661,327 Public Safety - 3,739,799 - - - - - 876,848 4,616,647
Public Works 490,702 - - - - - - 371,781 862,483
Community Development 481,984 - - - - - - - 481,984
Debt Service:
Principal 208,707 - - - - - 105,000 - 313,707
Interest and Fiscal Charges 10,759 - - - - - 164,151 - 174,910 Capital Outlay - 3,518,195 - - - - - - 3,518,195
Total Expenditures 9,405,505 - - - - 550,955 269,151 1,403,642 11,629,253
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 97,735 (4,332,543) 370,059 - 433,888 663,620 107,898 92,913 (2,566,430)
OTHER FINANCING SOURES (USES)
Transfers In 1,832,486 - - - - - 542,600 - 2,375,086
Transfers Out - (719,008) - (879,187) (75,542) - (598,882) - (2,272,619) Leases 237,887 - - - - - - - 237,887
Total Other Financing
Soures (Uses) - 1,351,365 - (879,187) (75,542) 542,600 (598,882) - 340,354 NET CHANGE IN FUND BALANCES 97,735 (2,981,178) - (509,128) 358,346 64,738 650,498 92,913 (2,226,076) Fund Balance - Beginning of Year 4,084,276 1,074,238 (582,319) 266,048 1,841,095 112,365 3,125,263 677,092 10,598,058 FUND BALANCES - END OF YEAR $ 1,103,098 $ 565,110 (484,584) $ 266,048 $ 2,199,441 $ 177,103 $ 3,775,761 $ 770,005 $ 8,371,982 $
CITY OF MCFARLAND
RECONCILIATION OF STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS TO GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
GOVERNMENTAL ACTIVITIES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(10)
Net Change to Fund Balance - Total Governmental Funds (2,226,076) $ 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 5,485,395
Less: Current Year Depreciation (1,478,213)
Less: Current Year Amortization (121,279)
Some revenues reported in the statement of activities will not be collected for several months after the City’s year end and do not provide current financial resources and therefore are not reported as revenues in the governmental funds. 2,050,833 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, Notes, Leases, and SBITAs 313,707 Proceeds from Issuance of Notes, Leases, and SBITAs (237,887) Change in Accrued Interest on Long-term Debt 1,050
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 (9,351)
Change in Net Position of Governmental Activities 3,790,038 $
CITY OF MCFARLAND
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(11)
Nonmajor
Public
Sewer Refuse Water Transportation Total
ASSETS
Current Assets:
Cash and Investments 1,680,402 $ - $ 8,007,426 $ 190,278 $ 9,878,106 $ Cash with Fiscal Agent - Restricted 44,083 - 21,712 - 65,795 Receivables:
Accounts 400,677 377,268 415,056 - 1,193,001
Intergovernmental 3,979 - - - 3,979
Interest - - 1,816 - 1,816
Leases 158,789 - - - 158,789
Due from Other Funds 4,419 4,114 1,360 604 10,497
Other Assets - - 5,097 - 5,097
Total Current Assets 2,292,349 381,382 8,452,467 190,882 11,317,080 Noncurrent Assets:
Advances to Other Funds 68,865 - - - 68,865
Capital Assets:
Nondepreciable:
Land 1,120,000 - 160,063 - 1,280,063
Construction in Progress - - - 74,963 74,963
Depreciable:
Buildings, Equipment and
Infrastructure 15,063,557 309,677 12,543,818 650,896 28,567,948 Accumulated Depreciation (6,197,641) (309,177) (6,777,684) (514,599) (13,799,101) Total Noncurrent Assets 10,054,781 500 5,926,197 211,260 16,192,738 Total Assets 12,347,130 381,882 14,378,664 402,142 27,509,818
LIABILITIES
Current Liabilities:
Accounts Payable 67,282 111,038 95,633 20,657 294,610
Accrued Liabilities 14,252 4,930 13,007 1,419 33,608
Interest Payable 5,438 - 11,040 - 16,478
Due to Other Funds - 56,387 - 4,431 60,818
Deposits Payable - - 21,139 - 21,139
Unearned Revenue - - - 172,771 172,771
Compensated Absences 9,107 3,705 9,279 2,330 24,421
Bonds Payable 166,160 - 81,840 - 248,000
Total Current Liabilities 262,239 176,060 231,938 201,608 871,845 Noncurrent Liabilities:
Bonds Payable 3,234,760 - 1,593,240 - 4,828,000
Total Liabilities 3,496,999 176,060 1,825,178 201,608 5,699,845
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - Leases 153,694 - - - 153,694 Total Deferred Inflows
of Resources 153,694 - - - 153,694
NET POSITION
Net Investment in Capital Assets 6,584,996 500 4,251,117 211,260 11,047,873 Restricted for Debt Service 44,083 - 21,712 - 65,795
Unrestricted 2,067,358 205,322 8,280,657 10,542,611 (10,726) Total Net Position 8,696,437 $ 205,822 $ 12,553,486 $ 200,534 $ 21,656,279 $ Enterprise Funds
CITY OF MCFARLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Nonmajor
Public
Sewer Refuse Water Transportation Total
OPERATING REVENUES
Charges for Services 2,071,510 $ 1,441,687 $ 2,004,204 $ - $ 5,517,401 $
OPERATING EXPENSES
Salaries and Employee Benefits 641,726 205,156 561,340 56,722 1,464,944 Services and Supplies 494,202 1,176,954 666,850 27,176 2,365,182 Utilities 199,221 - 379,259 - 578,480
Depreciation 416,574 531 477,385 33,022 927,512
Total Operating Expenses 1,751,723 1,382,641 2,084,834 116,920 5,336,118 OPERATING INCOME (LOSS) 59,046 319,787 (80,630) 181,283 (116,920)
NONOPERATING REVENUES (EXPENSES)
Grants 38,440 - - 121,878 160,318
Lease Revenue 60,414 - - - 60,414
Interest Income 17,169 537 42,613 - 60,319
Interest Expense - (197,612) - (101,899) (299,511)
Total Nonoperating
Revenues (Expenses) 537 (81,589) 121,878 (59,286) (18,460) INCOME (LOSS) BEFORE TRANSFERS 59,583 238,198 4,958 (139,916) 162,823 TRANSFERS IN 19,220 - - - 19,220
TRANSFERS OUT (41,978) (17,497) (22,839) (39,373) (121,687) CHANGE IN NET POSITION 61,306 196,220 (162,755) 60,356 (34,415) Net Position - Beginning of Year 144,516 8,500,217 12,716,241 234,949 21,595,923 NET POSITION - END OF YEAR $ 205,822 8,696,437 $ 12,553,486 $ 200,534 $ 21,656,279 $ Enterprise Funds
CITY OF MCFARLAND
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(13)
Nonmajor
Public
Sewer Refuse Water Transportation Total
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from Customers 1,982,960 $ 1,348,133 $ 1,900,555 $ - $ 5,231,648 $ Payments to Suppliers (677,265) (1,204,411) (1,033,004) (21,302) (2,935,982) Payments to Employees (652,875) (212,409) (559,242) (55,056) (1,479,582) Net Cash Provided (Used) by
Operating Activities 652,820 308,309 (68,687) 816,084 (76,358)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Grant Proceeds 38,440 - - 281,880 320,320
Loans from Other Funds 45,346 - - - 45,346
Transfers from Other Funds - 19,220 - - 19,220
Transfers to Other Funds (41,978) (17,497) (22,839) (39,373) (121,687) Settlements - - - -
Net Cash Provided (Used) by
Noncapital Financing Activities 41,808 1,723 242,507 (22,839) 263,199
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments Related to the Acquisition of
Capital Assets - (81,712) (61,888) (74,963) (218,563)
Principal Repayments Related to Capital
Purposes - (62,700) - (127,300) (190,000)
Interest Repayments Related to Capital
Purposes - (234,345) - (112,171) (346,516)
Payments made to Escrow account
for Bond Refunding - (346,532) - (108,288) (454,820)
Net Cash (Used) by
Capital and Related
Financing Activities - (725,289) (409,647) (74,963) (1,209,899)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest Earnings 17,169 537 42,613 - 60,319
Lease Revenue 60,414 - - - 60,414
Net Cash Provided by
Investing Activities 77,583 537 42,613 - 120,733
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 46,922 (66,427) 91,186 (81,564) (9,883) Cash and Cash Equivalents -
Beginning of Year 66,427 1,677,563 8,110,702 99,092 9,953,784
CASH AND CASH EQUIVALENTS -
END OF YEAR $ - 1,724,485 $ 8,029,138 $ 190,278 $ 9,943,901 $ Cash and Investments 1,680,402 $ - $ 8,007,426 $ 190,278 $ 9,878,106 $ Cash with Fiscal Agent - Restricted 44,083 - 21,712 - 65,795 Cash and Cash Equivalents -
per Statement of Net Position 1,724,485 $ - $ 8,029,138 $ 190,278 $ 9,943,901 $ Enterprise Funds
CITY OF MCFARLAND
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(14)
Nonmajor
Public
Sewer Refuse Water Transportation Total
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating Income (Loss) $ 59,046 319,787 $ $ (80,630) $ 181,283 (116,920) $ Adjustments to Reconcile
Operating Income (Loss) to
Net Cash Provided (Used) by
Operating Activities:
Depreciation 416,574 531 477,385 33,022 927,512
(Increase) Decrease in:
Accounts Receivable (87,516) (93,554) - (106,249) (287,319) Lease Receivable 59,406 - - - 59,406
Increase (Decrease) in:
Accounts Payable 16,158 13,105 (83,844) 5,874 (48,707)
Accrued Liabilities 6,773 3,118 7,808 17,517 (182)
Deposits - - 2,600 - 2,600
Due to Other Funds - 56,387 - - 56,387
Deferred Inflows - Lease Related - (60,440) - - (60,440) Unearned Revenues - - - - -
Compensated Absences (17,922) (10,371) 1,848 (5,710) (32,155) Net Cash Provided (Used) by
Operating Activities 652,820 $ $ 308,309 (68,687) $ $ 816,084 (76,358) $ Enterprise Funds
Noncash capital and financial activities
The City issued bonds to refund the 2010 revenue bonds. Proceeds of $4,490,016 were deposited immediately into an irrevocable trust for the defeasance of $5,525,000 of outstanding revenue bond principal and related accrued interest.
CITY OF MCFARLAND
STATEMENT OF NET POSITION
FIDUCIARY FUND
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Private
Purpose
Trust Fund
RDA
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, 2023
See accompanying Notes to Basic Financial Statements.
(16)
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 FINANCIAL STATEMENTS
JUNE 30, 2023
(17)
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 is a full-service city and operates under a Council – City Administration form of 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 organization’s governing body and is able to impose 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.
Reporting for component units on the City’s financial statements can be blended or discretely presented. Blended component units are, although legally separate entities, in substance part of the City’s operations and, therefore, data from these units are 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 – The McFarland Parking Authority of the City of McFarland (the 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, Section 32650. The Parking Authority’s legislative body is the City Council as Board of 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(18)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Reporting Entity (Continued)
Blended Component Units (Continued)
McFarland Improvement Authority – On April 12, 2012, under Resolution No. 2012-070, 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’s legislative body is the City Council as Commissioners of 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 – On July 31, 2001, the City and the Successor 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(19)
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 program revenues for each different identifiable activity of the City’s business-type activities and each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. 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
The fund financial statements provide information about the City’s funds, including 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 is used to account for the City’s share of the Transportation 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.
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.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(20)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
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 FINANCIAL STATEMENTS
JUNE 30, 2023
(21)
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 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 producing and delivering goods in connection with a proprietary fund’s principal ongoing 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(22)
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 pooled funds in Structured Notes and Asset-Backed Securities. LAIF’s investments are 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 and are presented as “Cash and Investments” in the accompanying basic financial 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(23)
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.
Land and construction in progress are not depreciated. Capital 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. Right-to-use lease assets are amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(24)
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 and distributes them to taxing jurisdictions on the basis of the taxing jurisdiction’s 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.
Loans reported as receivables and payables are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., 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 statements as “internal balances.” Advances between funds, as reported in the fund 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(25)
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
It is the City’s policy to permit employees to accumulate earned but unused vacation and 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(26)
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 – This category groups all 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 – This category presents external restrictions imposed 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 – This category represents net position of the City, not restricted for any project or other purpose or included in net investment in capital assets.
When both restricted and unrestricted net position are available for use, it is the City’s 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 – Amounts that cannot be spent either because they are not in a spendable form or because they are legally or contractually required to be maintained intact.
Restricted – Amounts restricted by external sources (creditors, laws of other governments, etc.) or by constitutional provision or enabling legislation.
Committed – Amounts that are obligated to a specific purpose which are 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.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance (Continued)
Assigned – Amounts that are intended to be used for specific purposes that are 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.
Unassigned – Residual positive fund balances within the General Fund, which 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, assigned, and unassigned fund balances are available, the City’s policy is to apply in the 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 financial reporting standards which may have a significant impact on the City’s financial reporting process. New standards applicable to the year ended June 30, 2023, are as follows:
GASB Statement No. 96 – Subscription-Based Information Technology Arrangements In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a rightto-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosures regarding a SBITA.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(28)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Implementation of New Governmental Accounting Standards (Continued) The City adopted the requirements of the guidance effective July 1, 2022 and has applied the provisions of this standard to the beginning of the period of adoption. The implementation of this standard resulted in the Government reporting a SBITA asset and a SBITA liability as disclosed in Note 3 and Note 8.
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 16,226,587 $
Cash with Fiscal Agents 3,804,667
Statement of Fiduciary Net Position:
Cash and Investments 6,665
Total 20,037,919 $
Cash and investments as of June 30, 2023, consist of the following:
Deposits with Financial Institutions 19,670,398 $
Cash on Hand 3,000
Investments 364,521
Total 20,037,919 $
Deposits
At year-end, the carrying amount of the City’s cash deposits (including amounts in checking accounts and money market accounts) was $20,037,919 and the bank balance was $20,279,280. 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 that in the event of a bank failure, the City’s 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 deposits. As of June 30, 2023, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(29)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Deposits (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, 2022:
Investment Type Fair Value Maturity Date
State Treasurer's Investment Pool (LAIF) 364,521 $ N/A
Total Investments 364,521 $
Interest Rate Risk
The City’s exposure to interest rate risk is identified by the above weighted average 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, 2023, the Credit rating for investment in LAIF was not rated. 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 risk does not apply to a local government’s indirect investment in securities through the 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(30)
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 McFarland by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that 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 California Government Code or the City’s investment policy.
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 – Quoted prices for identical investments in active markets; Level 2 – Observable inputs other than quoted market prices; and Level 3 – Unobservable inputs.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value of Investments (Continued)
The City’s position in external investment pools is, in itself, regarded as a type of investment and looking through to the underlying investments of the pool is not appropriate. Therefore, the City’s investment in external investment pools is not recognized in the three-tiered fair 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.
At June 30, 2023, the City’s investment in LAIF valued at amortized cost was $364,521 and 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 $174.8 billion. Of that amount, 97.22% is invested in nonderivative financial products and 2.78% in structured notes and asset-backed securities.
Restricted Cash and Investments with Fiscal Agents
Cash and investments at June 30, 2023, that are restricted by legal or contractual requirements are comprised of the following:
Governmental-Type Activities:
McFarland Improvement Authority:
Reserves for Capital Projects 3,457,473 $
Debt Service Reserves 281,399
Total McFarland Improvement Authority: 3,738,872
Business-Type Activities:
Sewer Fund:
Debt Service Reserves 44,083
Water Fund:
Debt Service Reserves 21,712
Total 65,795
Total Restricted Cash and Investments 3,804,667 $
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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NOTE 3 CAPITAL ASSETS
Capital and right-to-use assets activity for the year ended June 30, 2023, was as follows:
Balance Transfers/ Balance
July 1, 2022 Additions Retirements Adjustments June 30, 2023 Governmental-Type Activities:
Capital Assets, Not Being Depreciated:
Land 993 $ - ,176 $ - $ - $ 993 $ ,176
Construction In Progress 2 3 ,306,555 - ,258,893 4 (1,168,482) ,396,966 Total Capital Assets, Not Being
Depreciated 3 3 ,299,731 - ,258,893 5 (1,168,482) ,390,142 Capital Assets, Being Depreciated:
Infrastructure 36 1 ,046,386 - ,380,589 - 37 ,426,975
Machinery and Equipment 1 274 ,979,357 - ,339 - 2 ,253,696 Vehicles 1 406 ,212,496 - ,810 1 2 ,168,482 ,787,788
Total Capital Assets, Being
Depreciated 39 2 ,238,239 - ,061,738 1 42 ,168,482 ,468,459 Less Accumulated Depreciation for:
Infrastructure (8,534,036) - (1,160,682) - (9,694,718)
Machinery and Equipment (1,422,072) - (152,843) - (1,574,915) Vehicles (927,670) - (164,688) - (1,092,358)
Total Accumulated Depreciation (10,883,778) - (1,478,213) - (12,361,991) Total Capital Assets, Being
Depreciated, Net 28 583 ,354,461 - ,525 1 30 ,168,482 ,106,468 Right-to-Use Assets, Being Amortized:
Machinery and Equipment 188 124 ,065 - ,500 - 312 ,565
SBITAs - 40 - ,264 - 40 ,264
Total Right-to-Use Assets, Being
Amortized 188 164 ,065 - ,764 - 352 ,829
Less Accumulated Amortization for:
Machinery and Equipment (81,763) - (116,196) - (197,959) SBITAs - - (5,083) - (5,083)
Total Accumulated Amortization (81,763) - (121,279) - (203,042) Total Right-to-Use Assets, Being
Amortized, Net 106 43 ,302 - ,485 - 149 ,787
Governmental-Type Activities Capital
Assets, Net 31 $ 3 ,760,494 $ - ,885,903 $ - $ 35 $ ,646,397 Balance Transfers/ Balance
July 1, 2022 Additions Retirements Adjustments June 30, 2023 Business-Type Activities:
Capital Assets, Not Being Depreciated:
Land 1 $ - ,280,063 $ - $ - $ 1 $ ,280,063
Construction In Progress - 74 - ,963 - 74 ,963
Total Capital Assets, Not Being
Depreciated 1 74 ,280,063 - ,963 - 1 ,355,026
Capital Assets, Being Depreciated:
Infrastructure 6 - ,836,223 - - 6 ,836,223
Buildings and Improvements 8 - ,579,010 - - 8 ,579,010
Machinery and Other 115 11,976,338 - ,921 - 12 ,092,259 Vehicles 1 27 ,032,777 - ,679 - 1 ,060,456
Total Capital Assets, Being
Depreciated 28 143 ,424,348 - ,600 - 28 ,567,948
Less Accumulated Depreciation for:
Infrastructure (723,250) - (170,905) - (894,155)
Buildings and Improvements (3,182,779) - (410,167) - (3,592,946) Machinery and Other (8,091,070) - (318,016) - (8,409,086) Vehicles (874,490) - (28,424) - (902,914)
Total Accumulated Depreciation (12,871,589) - (927,512) - (13,799,101) Total Capital Assets, Being
Depreciated, Net 15 ,552,759 - (783,912) - 14 ,768,847
Business-Type Activities Capital
Assets, Net 16 $ ,832,822 $ - (708,949) $ - $ 16 $ ,123,873
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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NOTE 3 CAPITAL ASSETS (CONTINUED)
Depreciation
Depreciation expense was charged to governmental functions as follows at June 30, 2023:
General Government 426,227 $
Public Safety 146,830
Public Works 847,268
Community Development 57,888
Total Depreciation Expense - Governmental
Functions 1,478,213 $
Depreciation expense was charged to business-type functions as follows at June 30, 2023:
Solid Waste 416,574 $
Refuse 531
Water 477,385
Public Transit 33,022
Total Depreciation Expense - Business-Type
Functions 927,512 $
Amortization
Amortization expense was charged to governmental functions as follows at June 30, 2023:
General Government 121,279 $
Total Amortization Expense - Governmental
Functions 121,279 $
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023:
Due from Due to
Other Funds Other Funds
General Fund 1,213,430 $ 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 56,387
Water 1,360 -
Nonmajor Governmental Funds - 997,560
Nonmajor Enterprise Fund 604 4,431
Total 2,433,469 $ 2,433,469 $
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 - $ 68,865 $
Sewer 68,865 -
Total 68,865 $ 68,865 $
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023:
Transfer In Transfer Out
General Fund 1,832,486 $ 719,008 $
Gas Tax - 879,187
McFarland Improvement Authority 542,600 -
Development Impact - 75,542
Miscellaneous Grants - 598,882
Sewer - 41,978
Refuse 19,220 17,497
Water - 22,839
Nonmajor Enterprise Fund - 39,373
Total 2,394,306 $ 2,394,306 $
During the year, the City transferred $879,187 from its Gas Tax Fund to the General Fund to fund capital projects, $598,882 from the Miscellaneous Grants Fund to the General Fund for fire services, and $542,600 from the General Fund to the McFarland Improvement Authority for debt service.
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 transactions that qualify 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(36)
NOTE 5 NOTE 5 UNEARNED/UNAVAILABLE REVENUE (CONTINUED)
At June 30, 2023, components of unearned and unavailable revenues were as follows:
Unearned Unavailable
Revenue Revenue Total
General Fund:
Grant Revenue - $ 2,105,832 $ 2,105,832 $
TDA:
Grant Revenue - 573,906 573,906
CalHOME:
Grant Revenue and Loans - 2,861,108 2,861,108
Miscellaneous Grants:
Grant Revenue and Loans 2,187,656 - 2,187,656
Nonmajor Governmental Funds:
Grant Revenue and Loans 416 709,906 710,322
Total Governmental-Type
Activities 2,188,072 $ 6,250,752 $ 8,438,824 $
Public Transportation:
Grant Revenue 172,771 $
Total Business-Type
Activities 172,771 $
NOTE 6 LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2023:
Amounts
Balance Balance Due Within
Type of Indebtedness July 1, 2022 Additions Retirements Adjustments June 30, 2023 One Year Governmental-Type Activities:
Direct Placement
Revenue Bonds 4,245,000 $ - $ (105,000) $ - $ 4,140,000 $ 100,000 $ Unamortized Premiums on Bonds 296,487 - (11,859) - 284,628 - Direct Borrowing
Notes Payable 777,639 83,723 (46,986) - 814,376 20,207
Other Liabilities
Leases 108,517 117,500 (151,015) - 75,002 67,497
SBITAs - 36,664 (10,706) - 25,958 10,047
Compensated Absences 54,229 23,775 (14,424) - 63,580 31,790 Total Governmental-Type
Activities 5,481,872 $ 261,662 $ (339,990) $ - $ 5,403,544 $ 229,541 $ Business-Type Activities:
Direct Placement
Revenue Bonds 5,715,000 $ 5,076,000 $ (5,715,000) $ - $ 5,076,000 $ 248,000 $ Other Liabilities
Compensated Absences 56,576 12,155 (44,310) - 24,421 18,316 Total Business-Type Activities 5,771,576 $ 5,088,155 $ (5,759,310) $ - $ 5,100,421 $ 266,316 $ Compensated absences for the governmental activities are generally liquidated by the fund where the accrued liability occurred.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(37)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Individual issues of debt payable outstanding at June 30, 2023, are as follows:
Governmental-Type 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. 4,140,000 Total Revenue Bonds 4,140,000
Notes Payable:
Note payable to the United States Department of
Agriculture in the amount of $844,700; principal and
interest at 3.375% due each October 1 through 2058. 814,376 Total Notes Payable 814,376
Total Governmental-Type Activities 4,954,376 $
Business-Type Activities:
Revenue Bonds:
Revenue Bonds dated June 15, 2023, in the
original amount of $5,076,000 at 4.410% interest;
payable semi-annually commencing October 1,
2023. Principal is due annually commencing
October 1, 2023, with final payment due October 1,
2039. Secured by a pledge of water and wastewater
net revenues. 5,076,000 $
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(38)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
The following are schedules of debt service requirements as of June 30, 2023:
Year Ending June 30, Principal Interest Principal Interest 2024 110,000 $ 161,000 $ 20,207 $ 2,093 $
2025 115,000 157,700 20,264 2,036
2026 115,000 154,250 20,321 1,979
2027 120,000 150,800 20,378 1,922
2028 125,000 147,200 20,436 1,864
2029 - 2033 700,000 657,000 103,043 8,453
2034 - 2038 845,000 506,400 104,501 6,992
2039 - 2043 1,030,000 322,600 105,978 5,510
2044 - 2048 980,000 100,000 107,477 4,007
2049 - 2053 - - 108,997 2,483
2054 - 2058 - - 110,538 937
2059 - - 72,236 -
Total 4,140,000 $ 2,356,950 $ 814,376 $ 38,276 $
Governmental-Type Activities
Revenue Bonds Note Payable
Year Ending June 30, Principal Interest
2024 248,000 $ 172,369 $
2025 212,000 208,240
2026 222,000 198,671
2027 232,000 188,660
2028 242,000 178,208
2029 - 2033 2,737,000 1,048,014
2034 - 2038 1,183,000 79,799
Total 5,076,000 $ 2,073,961 $
Business-Type Activities
Revenue Bonds
On June 15, 2023, the City issued $5,076,000 in revenue bonds with an average interest rate of 4.410% to advance refund $5,525,000 of outstanding 2010 revenue bonds with interest rate ranging from 0.5% to 5%. The net proceeds of $4,940,016 plus an additional $660,106 of reserve moneys were used to purchase securities, resulting in a loss of $75,123. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 2010 Series bonds. As a result, the 2010 Series bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net assets and the proprietary fund statement of net position.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(39)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
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, 2023, $5,076,000 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, 2023, the net revenue available for service of this debt was $298,537. The debt principal and interest paid in fiscal year 2022-2023 equals $467,213 (156.5% of available pledged net revenues).
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
2024 67,497 $ 1,098 $
2025 5,167 533
2026 1,832 168
2027 506 18
Total Minimum Lease Payments 75,002 $ 1,817 $
Governmental-Type Activities
Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.
GovernmentalType Activities
Equipment 312,565 $
Less: Accumulated Amortization (197,959)
Total 114,606 $
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(40)
NOTE 7 LEASES (CONTINUED)
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, 2023, the City recognized $13,951 for governmental activities and $60,414 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 2024 14,366 $ - $ 61,781 $ - $
2025 - - 64,252 -
2026 - - 32,756 -
Total Minimum
Lease Payments 14,366 $ - $ 158,789 $ - $
Governmental-Type Activities Business-Type Activities
NOTE 8 SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS The City has entered into various long-term, non-cancellable subscription-based information technology agreements. Total future minimum lease payments under these agreements are as follows:
Year Ending June 30, Principal Interest
2024 10,047 $ 729 $
2025 5,296 444
2026 5,264 296
2027 5,351 150
Total Minimum Lease Payments 25,958 $ 1,619 $
Governmental-Type Activities
Right-to-use assets acquired through outstanding agreements are shown below, by underlying asset class.
GovernmentalType Activities
Equipment 40,264 $
Less: Accumulated Amortization (5,083)
Total 35,181 $
NOTE 9 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.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(41)
NOTE 8 FUND BALANCES (CONTINUED)
The fund balances for all major and nonmajor governmental funds as of June 30, 2023, were distributed as follows:
McFarland Other
Development Miscellaneous Improvement Governmental
General TDA-LTF Gas Tax CalHOME Impact Grants Authority Funds Total Nonspendable:
Prepaids 4,127 $ - $ - $ - $ - $ - $ - $ - $ 4,127 $
Land Held
for Resale 446,593 - - - - - - - 446,593
Subtotal 450,720 - - - - - - - 450,720
Restricted for:
Streets and
Transportation - - 565,110 - - - - 870,264 1,435,374
Impact Fees - - - - 2,199,441 - - - 2,199,441
CalHOME - - - 266,048 - - - - 266,048
General
Government - - - - - 177,103 - - 177,103
Debt Service - - - - - - 281,399 - 281,399
Capital Projects - - - - - - 3,494,362 - 3,494,362
Subtotal - - 565,110 266,048 2,199,441 177,103 3,775,761 870,264 7,853,727 Assigned to:
CUP Fees for
Capital Projects 2,112,278 - - - - - - - 2,112,278
Subtotal 2,112,278 - - - - - - - 2,112,278
Unassigned (1,459,900) (484,584) - - - - - (100,259) (2,044,743) Total 1,103,098 $ (484,584) $ 565,110 $ 266,048 $ 2,199,441 $ 177,103 $ 3,775,761 $ 770,005 $ 8,371,982 $ NOTE 10 RETIREMENT PLAN
General Information About the Pension Plan
Plan Description
The City’s defined contribution plan provides for retirement benefits to plan members and beneficiaries. The plan is administrated by John Hancock Life Insurance Company.
Funding Policy
The City contributes 10% of permanent employees’ salaries who have at least three 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 employee’s contributions plus interest plus the vested portion of the City’s contributions.
During the current year, the City was required to make contributions to the plan in the amount of $313,075. The plan also included $4,629 of forfeitures during the current year.
CITY OF MCFARLAND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(42)
NOTE 11 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.
For general liability and workers’ compensation programs, the City is a member of the 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 member has a specific self-insured retention (SIR) level. The City of McFarland’s SIR is $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.
Workers’ Compensation
Annual deposits are paid by members and are adjusted retrospectively to cover costs. Each member has a specific self-insured retention (SIR) level. The City of McFarland’s SIR is $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.
Claims from $500,000 to $5,000,000 are self-insured by the Local Agency Workers’ 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 FINANCIAL STATEMENTS
JUNE 30, 2023
(43)
NOTE 10 RISK MANAGEMENT (CONTINUED)
Workers’ Compensation (Continued)
The audited financial information from Central San Joaquin Valley Risk Management Authority for the year ended June 30, 2023, is as follows:
Total Assets 153,984,502 $
Total Liabilities 120,022,096
Net Position 33,962,406 $
Total Revenues 73,088,767 $
Total Expenses 71,300,255
Change in Net Position 1,788,512 $
Complete audited financial statements can be obtained from their office at 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.
NOTE 12 OTHER INFORMATION
Fund Deficits
The City has accumulated fund deficits in the following individual funds:
Governmental Funds:
TDA-LTF 484,584 $
CDBG 13,888
HOME 85,457
COPS 914
These deficits will be resolved by future charges for services to other County funds.
Commitments
The City has signed agreements to construct various capital improvements subsequent to June 30, 2023. The balance owed on the commitments at June 30, 2023, was approximately $5,399,580.
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.
The City is involved in several lawsuits. Due to the nature of the cases, The City’s 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.
(44)
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
CITY OF MCFARLAND
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information (45)
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES
Taxes 2,698,330 $ 2,698,330 $ 3,010,197 $ 311,867 $
Licenses and Permits 362,449 362,449 384,681 22,232
Fines and Forfeitures 45,178 45,178 52,792 7,614
Use of Money and Property 74,031 74,031 27,298 (46,733) Intergovernmental Revenues 3,632,635 3,582,635 592,898 (2,989,737) Charges for Services 3,317,051 3,317,051 764,183 (2,552,868) Contributions - 1,500 109,580 108,080
Other Revenues 5,000 60,000 131,333 71,333
Total Revenues 10,134,674 10,141,174 5,072,962 (5,068,212)
EXPENDITURES
Current:
General Government 1,312,316 1,342,345 955,359 386,986
Public Safety 3,972,813 4,210,860 3,739,799 471,061
Public Works 723,122 783,122 490,702 292,420
Community Development 546,142 892,312 481,984 410,328
Debt Service:
Principal 646,161 646,161 208,707 437,454
Interest and Other Charges - - 10,759 (10,759)
Capital Outlay 5,682,883 5,861,789 3,518,195 2,343,594
Total Expenditures 12,883,437 13,736,589 9,405,505 4,331,084
DEFICIENCY OF
REVENUES OVER (UNDER)
EXPENDITURES (3,595,415) (2,748,763) (4,332,543) (737,128)
OTHER FINANCING SOURES (USES)
Transfers In - - 1,832,486 1,832,486
Transfers Out - - (719,008) (719,008)
Issuance of Leases - - 237,887 237,887
Total Other Financing
Soures (Uses) - - 1,351,365 1,351,365
NET CHANGE IN FUND BALANCES (3,595,415) (2,748,763) (2,981,178) 614,237 Fund Balances - Beginning of Year 4,084,276 4,084,276 4,084,276 - FUND BALANCES - END OF YEAR $ 488,861 1,335,513 $ 1,103,098 $ 614,237 $
CITY OF MCFARLAND
BUDGETARY COMPARISON SCHEDULE
TDA-LTF
MAJOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information (46)
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES
Intergovernmental Revenues 645,870 $ 645,870 $ 97,735 $ (548,135) $ Total Revenues 645,870 645,870 97,735 (548,135)
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 645,870 645,870 97,735 (548,135)
OTHER FINANCING SOURES (USES)
Transfers Out (645,870) (645,870) - 645,870
Total Other Financing
Soures (Uses) (645,870) (645,870) - 645,870
NET CHANGE IN FUND BALANCES - - 97,735 97,735
Fund Balances - Beginning of Year (582,319) (582,319) (582,319) - FUND BALANCES - END OF YEAR $ (582,319) (582,319) $ (484,584) $ 97,735 $
CITY OF MCFARLAND
BUDGETARY COMPARISON SCHEDULE
GAS TAX
MAJOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information (47)
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES
Intergovernmental Revenues 374,977 $ 374,977 $ 370,059 $ (4,918) $ Total Revenues 374,977 374,977 370,059 (4,918)
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 374,977 374,977 370,059 (4,918)
OTHER FINANCING USES
Transfers Out (779,790) (779,790) (879,187) (99,397)
Total Other Financing
Uses (779,790) (779,790) (879,187) (99,397)
NET CHANGE IN FUND BALANCES (404,813) (404,813) (509,128) (104,315) Fund Balances - Beginning of Year 1,074,238 1,074,238 1,074,238 - FUND BALANCES - END OF YEAR $ 669,425 669,425 $ 565,110 $ (104,315) $
CITY OF MCFARLAND
BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT
MAJOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information (48)
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES
Licenses and Permits 411,208 $ 411,208 $ 433,888 $ 22,680 $ Total Revenues 411,208 411,208 433,888 22,680
EXCESS OF
REVENUES OVER (UNDER)
EXPENDITURES 411,208 411,208 433,888 22,680
OTHER FINANCING SOURES (USES)
Transfers Out (78,283) (78,283) (75,542) 2,741
Total Other Financing
Soures (Uses) (78,283) (78,283) (75,542) 2,741
NET CHANGE IN FUND BALANCES 332,925 332,925 358,346 25,421 Fund Balances - Beginning of Year 1,841,095 1,841,095 1,841,095 - FUND BALANCES - END OF YEAR $ 2,174,020 2,174,020 $ 2,199,441 $ 25,421 $
CITY OF MCFARLAND
BUDGETARY COMPARISON SCHEDULE
MISCELLANEOUS GRANTS
MAJOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information (49)
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES
Intergovernmental Revenues - $ - $ 1,214,575 $ 1,214,575 $ Total Revenues - - 1,214,575 1,214,575
EXPENDITURES
Current:
General Government 805,813 883,225 550,955 332,270
Total Expenditures 805,813 883,225 550,955 332,270
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES (883,225) (805,813) 663,620 1,546,845
OTHER FINANCING SOURES (USES)
Transfers In
Transfers Out (598,882) (598,882) (598,882) -
Total Other Financing
Soures (Uses) (598,882) (598,882) (598,882) -
NET CHANGE IN FUND BALANCES (1,482,107) (1,404,695) 64,738 1,546,845 Fund Balances - Beginning of Year 112,365 112,365 112,365 - FUND BALANCES - END OF YEAR $ (1,369,742) (1,292,330) $ 177,103 $ 1,546,845 $
CITY OF MCFARLAND
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
(50)
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. There were no expenditures that exceeded the budget for the year. 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 reappropriated in the ensuing year’s budget.
The City Council adopts budgets for the Enterprise funds. However, all Proprietary fund types are accounted for on a cost of service (net income), or “capital maintenance” 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 since this fund did not report a budget this year.
(51)
COMBINING FUND STATEMENTS
CITY OF MCFARLAND
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
(52)
Road Community
Lighting and Maintenance Facilities
CDBG HOME Landscape COPS and Rehab District Total
ASSETS
Cash and Investments 402,547 $ - $ 193,461 $ - $ 659,500 $ - $ 1,255,508 $ Receivables:
Accounts - 3,383 - - 28,397 - 31,780
Intergovernmental 7,791 - - 482,791 - - 490,582
Loans Receivable - 709,906 - - - - 709,906
Total Assets 410,338 $ 713,289 $ 193,461 $ 482,791 $ 687,897 $ - $ 2,487,776 $
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts Payable - $ - $ 9,182 $ - $ - $ - $ 9,182 $
Accrued Liabilities - - 707 - - - 707
Due to Other Funds 424,226 88,840 789 483,705 - - 997,560 Unearned Revenue - - - - 416 - 416
Total Liabilities 424,226 88,840 10,678 483,705 416 - 1,007,865
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue - 709,906 - - - - 709,906
FUND BALANCES
Restricted - - 182,783 - 687,481 - 870,264
Unassigned (13,888) (85,457) - (914) - - (100,259)
Total Fund Balances (13,888) (85,457) 182,783 (914) 687,481 - 770,005 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 410,338 $ 713,289 $ 193,461 $ 482,791 $ 687,897 $ - $ 2,487,776 $ Special Revenue
CITY OF MCFARLAND
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
(53)
Road Community
Lighting and Maintenance Facilities
CDBG HOME Landscape COPS and Rehab District Total
REVENUES
Taxes - $ - $ 149,499 $ - $ 286,611 $ - $ 436,110 $
Use of Money and Property - - 187 - - - 187
Intergovernmental Revenues - - - 876,848 28,397 155,013 1,060,258 Other Revenues - - - - - - -
Total Revenues - - 149,686 876,848 315,008 155,013 1,496,555
EXPENDITURES
Current:
General Government - - - - - 155,013 155,013
Public Safety - - - 876,848 - - 876,848
Public Works - - 207,942 - 163,839 - 371,781
Capital Outlay - - - - - - -
Total Expenditures - - 207,942 876,848 163,839 155,013 1,403,642
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES - - (58,256) - 151,169 - 92,913
OTHER FINANCING
SOURCES (USES)
Transfers Out - - - - - - -
Total Other Financing
Soures (Uses) - - - - - - -
NET CHANGE IN FUND
BALANCES - - (58,256) - 151,169 - 92,913
Fund Balances - Beginning
of Year (13,888) (85,457) 241,039 (914) 536,312 - 677,092
FUND BALANCES - END
OF YEAR $ (85,457) (13,888) $ 182,783 $ (914) $ 687,481 $ - $ 770,005 $ Special Revenue
CITY OF MCFARLAND
SINGLE AUDIT REPORT
YEAR ENDED JUNE 30, 2023
CITY OF MCFARLAND
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 3
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER
COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 5
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 10
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 12
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(3)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
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, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated March 20, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s 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, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
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. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
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 misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a 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.
We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2023-001 to be a material weakness.
Honorable City Council
City of McFarland
(4)
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. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2023-002 and 2023-003 to be significant deficiencies.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from 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 McFarland’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of McFarland’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City of McFarland’s response was not subjected to the 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 entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Roseville, California
March 20, 2024
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(5)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH
MAJOR FEDERAL 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 identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying 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, 2023.
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 those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City 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 City’s compliance with the compliance requirements referred to above.
Honorable City Council
City of McFarland
(6)
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 City’s federal programs.
Auditors’ Responsibilities for the Audit of Compliance
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’s compliance based on our audit. 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, 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’s compliance with the requirements of each major federal program as a 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, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in 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’s internal control over 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
(7)
Report on Internal Control Over Compliance
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.
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
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.
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response 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.
Honorable City Council
City of McFarland
(8)
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 as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We have issued our report thereon, dated March 20, 2024, 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
March 20, 2024
CITY OF MCFARLAND
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Schedule of Expenditures of Federal Awards. (9)
Federal
Assistance Pass-Through Total Passed
Federal Grantor/Pass-Through Grantor/ Listing Entity Identifying Federal Through to Program/Cluster Title Number Number Expenditures Subrecipients U.S. Department of Agriculture
Direct Programs:
Community Facilities Direct Loan and Grant Program 10.766 N/A 747,910 $ - $ Subtotal - Community Facilities Loans and
Grant Cluster - 747,910
Total U.S. Department of Agriculture 747,910 -
U.S. Department of Housing and Urban Development
Passed-Through State of California Department of
HOME Investment Partnership Program
(Outstanding Loans) 14.239 N/A 709,906 -
Total U.S. Department of Housing and
Urban Development - 709,906
U.S. Department of Justice
Direct Programs:
Public Safety Partnership and Community
Policing Grants 16.710 N/A 483,061 -
Total U.S. Department of Justice - 483,061
U.S. Department of Transportation
Passed-Through the State Department
of Transportation:
Highway Planning and Construction 20.205 CMAQ-8405 1,680 - Highway Planning and Construction 20.205 H8-06-012 21,460 - Subtotal - Highway Planning and
Construction Cluster - 23,140
Formula Grants for Rural Areas and Tribal Transit Program 20.509 N/A 43,946 - Total U.S. Department of Transportation 67,086 -
U.S. Department of Treasury
Passed-Through the State Department of Finance
COVID-19 Coronavirus
State and Local Fiscal Recovery Funds 21.027 N/A 1,111,875 - Subtotal - Assistance Listing Number 21.027 1,111,875 - Total U.S. Department of Treasury - 1,111,875
Total Expenditures of Federal Awards 3,119,838 $ - $
CITY OF MCFARLAND
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2023
(10)
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, 2023. 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.
NOTE 5 PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER
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
JUNE 30, 2023
(11)
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, 2023.
Loans with
Assistance Continuing
Listing Outstanding Compliance
Number Federal Program Loans Requirements
10.766 Community Facilities Direct Loan and Grant Program 747,910 $ 747,910 $
14.239 Home Investment Partnership Program 709,906 709,906
CITY OF MCFARLAND
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
(12)
Section I – Summary of Auditors’ Results
Financial Statements
1. Type of auditors’ report issued: Unmodified
2. Internal control over financial reporting:
Material weakness(es) identified? x yes no
Significant deficiency(ies) identified? x yes 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? yes x none reported
2. Type of auditors’ report issued on
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
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, 2023
(13)
Section II – Financial Statement Findings
2023 – 001 Unavailable Revenue
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During our audit, we noted revenue was overstated and unavailable revenue was understated by $2,105,832 in the General Fund.
Criteria or specific requirement: Unavailable revenue 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: Revenue was overstated and unavailable revenue was understated by $2,105,832 in the General Fund.
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.
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, 2023
(14)
2023 – 002 Accounts Receivable
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: During our audit, we noted accounts receivable and revenue were understated by $134,388 in the General Fund for conditional use permits and SRO funding. Accounts receivable and revenue were also understated by $27,025 in the Gas Tax Fund for highway user tax funding. Accounts receivable and revenue were also understated by $28,397 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 City’s financial statements:
Accounts receivable and revenues were understated by $134,388 in the General Fund for conditions use permits and SRO funding.
Accounts receivable and revenue were understated by $27,025 in the Gas Tax Fund for highway user tax funding.
Accounts receivable and revenues were understated by $28,397 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 a repeat finding from the prior year (2022-003).
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, 2023
(15)
2023 – 003 SEFA Preparation
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The City made adjustments to the SEFA for the following program: ALN #20.509 Formula Grants for Rural Areas Program.
Criteria or specific requirement: The City's responsibility per the Uniform Guidance, Section 200.508 Part B, is to "prepare appropriate financial statements, including the Schedule of Expenditures of Awards (SEFA)". 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 Formula Grants for Rural Areas Program from the SEFA which amounted to $43,946 in federal expenditures.
Cause: Expenditures related to the program were not included on the SEFA through the City's process of compiling the SEFA.
Repeat Finding: This is a repeat finding from the prior year (2022-005).
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, 2023
(16)
Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).
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
April 11, 2024
City of McFarland
Presentation of Audit Reports
June 30, 2023
©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 -1 Material weaknesses identified
- 2 Significant deficiencies
-No instances 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 None Reported
5 ©2021 CliftonLarsonAllen LLP
Summary of Audit Results: Recap of Findings
Engagement Type Account Condition Recommendation
Financial
Statements
MW
2023-001
Unavailable
revenue and
revenue
During our audit, we noted that revenues
that were earned during FY 2023, but not
received in cash during the availability period
were not properly reclassified to unavailable
revenue.
Establish procedures for comparing revenues
reported to amounts earned during the availability
period and perform reclassifications as necessary.
Financial
Statements
SD
2023-002
Accounts
Receivable
During our audit, we identified several
transactions that should have been recorded
as revenue and receivables at June 30, 2023.
Compare receivables balance to cash collections to
ensure that the City’s receivable balance is
complete.
Financial
Statements
SD
2023-003
Schedule of
Expenditures
of Federal
Awards
(SEFA)
During our audit, it was identified that the
City initially omitted a program from the
SEFA
Provide training to the City departments to identify
federal programs and ensure that all expenditures
of federal programs are included on the SEFA.
6 ©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, lessees, revenues and expenditures.
Disagreements with Management • No disagreements with management Consultations with Other Accountants • No consultations with other accountants
7 ©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
8 ©2021 CliftonLarsonAllen LLP
Recent Governmental Accounting Standards Board
(GASB) Pronouncements
9 Standard Applicable year Expected Impact
99- Omnibus 2022 2024 Not significant
100- Accounting for Changes and Error
corrections
2024 Not significant
101- Compensated Absences 2025 Moderate
102- Certain Risk Disclosures 2025 Not significant
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©2021 CliftonLarsonAllen LLP Page 287 of 318
11 City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 15.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: April 11, 2024
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
SUBJECT: APPROVAL OF RESOLUTION NO. 2024-46 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF MCFARLAND APPROVING FUNDS FROM THE
CITY'S COMMUNITY GRANT PROGRAM TO THE COUGAR BOOSTER
CLUB FOR THE SUMMER FOOTBALL CAMP AND RELATED ACTIVITIES.
SUMMARY:
In February 2023, the City of McFarland City Council initiated the Community Grants Program to support various local groups, organizations, and volunteers. This program aims to enhance the cultural, social, and economic well-being of McFarland through funding opportunities for events and activities that benefit the community. The program emphasizes transparent, justifiable, and fair expenditure of tax dollars, aligning with the Council’s vision of fostering beneficial programs, services, or projects within financial constraints.
On April 5, 2024, the Cougar Booster Club submitted an application for a $2,500 grant to support their summer football camp and associated activities, aiming to bolster McFarland High School Early College’s extracurricular academic and athletic programs. This report evaluates the application against the city’s criteria for community grant funding, including public service provision and community health, safety, and welfare promotion.
The Cougar Booster Club requests $2,500 out of an $8,000 total project cost for their summer camp, intending to cover the shortfall through community fundraising efforts. Approval of this grant will allocate these funds from the Community Grants Program budget, which is designed to support such community-enhancing projects. The financial assistance will specifically aid underprivileged high school athletes, fostering both personal growth and city representation.
The program's funding is accounted for in the annual budget, with allocations made to support community organizations that meet the established criteria. Approval of this grant would reflect a strategic investment in our youth and community engagement, with anticipated positive social and economic returns on investment.
FINANCIAL IMPACT:
$2,500 from the City of McFarland Community Grant Funds RECOMMENDATION:
Based on the application's alignment with the Community Grants Program criteria and the potential impact on McFarland’s youth and broader community, staff recommends approval of the Cougar Booster Club’s grant request. This funding will not only support local athletes in
their development but will also reinforce McFarland’s commitment to nurturing a strong, vibrant community through engagement in educational and athletic pursuits.
ATTACHMENTS:
1. Cougar Booster Club Community Grant Application
RESOLUTION NO. 2024-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND APPROVING
FUNDS FROM THE CITY'S COMMUNITY GRANT PROGRAM TO THE COUGAR
BOOSTER CLUB FOR THE SUMMER FOOTBALL CAMP AND RELATED ACTIVITIES WHEREAS, the City of McFarland recognizes the importance of community-based groups, organizations, and volunteers in enhancing the cultural, social, and economic well-being of the city; and WHEREAS, the City Council of McFarland established the Community Grants Program in February 2023 to provide funding opportunities for events and activities that contribute positively to the community; and
WHEREAS, the Community Grants Program is designed to ensure that tax dollars are expended in a manner that is justifiable, fair, and holds recipient groups accountable for their spending, thereby demonstrating the City Council's commitment to supporting beneficial programs, services, or projects; and
WHEREAS, the Cougar Booster Club submitted an application for a community grant in the amount of $2,500 on April 5, 2024, to assist with funding a summer football camp and related activities for McFarland High School Early College athletes; and
WHEREAS, the proposed project by the Cougar Booster Club aims to provide additional funding sources for extracurricular academic and athletic programs, specifically targeting high school students with limited financial resources to attend specialized camps; and WHEREAS, participation in the summer camp, including activities at Hume Lake, is expected to foster skill development and character building among McFarland High School athletes, thereby enhancing their performance and representing the spirit of McFarland both on and off the field; and WHEREAS, the total cost of the summer camp is estimated at $8,000, with the Cougar Booster Club committed to covering the additional expenses through fundraising efforts, including the McFarland Cougar Athletic Booster Club Golf Tournament; and WHEREAS, the Cougar Booster Club is a registered 501(c)(3) nonprofit organization in good
standing, and has received a letter of support from the McFarland Unified School District Superintendent, S. Aaron Resendez;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1. Grant Approval: The City Council hereby approves the grant application of the Cougar Booster Club in the amount of $2,500 for the summer football camp and related activities, under the terms and conditions of the Community Grants Program.
2. Funding Allocation: The Finance Director is authorized and directed to allocate the approved grant amount of $2,500 from the Community Grants Program budget to the Cougar Booster Club for the stated purpose of supporting the summer football camp and related activities.
3. Recognition and Publicity: The City of McFarland and the Cougar Booster Club shall mutually acknowledge and publicize this partnership and the positive outcomes of the summer camp through appropriate media channels, highlighting the City Council's support for communitybased programs and the success of local youth initiatives.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on April 11, 2024 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted
by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 16.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: April 11, 2024
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Brian Knox, Chief of Police
SUBJECT: APPROVAL OF RESOLUTION NO. 2024-21 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF MCFARLAND ADOPTING THE COMMUNITY
EVENT SECURITY POLICY
SUMMARY:
Purpose:
This report aims to assess the security needs for community events and provide recommendations for ensuring the safety and well-being of attendees, staff, and participants based on the attached policy and procedures.
Introduction:
Community events play a vital role in fostering social cohesion and providing opportunities for engagement and entertainment. However, ensuring the security of such events is paramount to safeguarding the welfare of all involved. This report addresses the various security considerations and proposes measures to mitigate potential risks.
Security Considerations:
1. Crowd Control: Large gatherings can present challenges in managing crowd movements and behaviors. Proper crowd control measures, such as designated entry and exit points, barriers, and trained personnel, are essential to prevent overcrowding and maintain order.
2. Threat Assessment: Assessing potential threats, including terrorism, violence, and accidents, is crucial for effective security planning. Conducting thorough risk assessments based on the event’s nature, location, and anticipated attendance helps identify vulnerabilities and tailor security measures accordingly.
3. Venue Security: Evaluating the security features of the event venue, including access points, lighting, and surveillance systems, is fundamental. Enhancements such as additional lighting, CCTV cameras, and security patrols can deter criminal activities and enhance overall safety.
4. Emergency Preparedness: Establishing protocols for responding to emergencies, such as medical incidents, fires, or security breaches, is imperative. Designating emergency exits, providing first aid stations, and coordinating with local emergency services enable prompt and efficient responses in crisis situations.
5. Communication: Effective communication channels are essential for disseminating important information and instructions to event attendees and staff. Utilizing public address systems, signage, and digital platforms ensures clear and timely
communication, enhancing crowd management and emergency response efforts.
Recommendations:
Staff is recommending city council approve the attached security policies for community events which includes the details of the below items and other appropriate polices.
1. Security Personnel: Deploy trained security personnel, including uniformed guards and plainclothes officers, to monitor the event premises and respond swiftly to security incidents. Security personnel will be based on anticipated attendance and serving of alcohol, as detailed in the attached policy:
2. Bag Checks: Implement bag checks at entry points to screen for prohibited items and weapons, enhancing the safety of attendees and preventing potential threats.
3. Event fencing: Ensuring adequate vetting of attendees to deter gang activities and other criminal behavior within the event venue necessitates fencing the parameters of the events. All outdoor community events will be fenced unless The Chief of Police determines the event does not warrant the fencing of the event.
4. Collaboration: Foster collaboration with local law enforcement agencies, emergency responders, and event organizers to coordinate security efforts and share relevant information.
5. Public Awareness: Promote public awareness of security measures and encourage attendees to report suspicious activities or concerns to event staff or security personnel.
6. Continuous Evaluation: Conduct post-event evaluations to assess the effectiveness of security measures, identify areas for improvement, and incorporate lessons learned into future security planning.
Conclusion:
Ensuring the security of community events requires proactive planning, coordination, and implementation of appropriate measures. By addressing the identified security considerations and implementing the recommended strategies, event organizers can create safer and more enjoyable experiences for all participants.
FINANCIAL IMPACT:
Approving this policy does not cause an increase to the city's budget.
RECOMMENDATION:
Based on the need for enhancing the security at community events and the need to ensure consistency among event organizers staff is recommending the city council approve the attached security policy for community events.
ATTACHMENTS:
1. Security policy for community events_
RESOLUTION NO. 2024-42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND ADOPTING
THE COMMUNITY EVENT SECURITY POLICY
WHEREAS, the City Council of the City of McFarland recognizes the importance of ensuring the safety and security of all participants and attendees at community events; and WHEREAS, the City Council acknowledges the necessity for a comprehensive city policy that outlines specific security measures and protocols to be implemented during community events to ensure their safe execution; and
WHEREAS, to address this need, the City Council has reviewed and wishes to adopt the Community Event Security Policy, as detailed in Attachment A, which is an integral part of this resolution; and
WHEREAS, the adoption of this policy demonstrates the City Council's commitment to the well-being and safety of its community members during city-organized or city-sponsored events; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1. The foregoing recitals are true and correct and incorporated herein as if set forth in full.
2. The City Council recognizes the critical need to hold safe and secure community events that protect all participants and attendees.
3. The Community Event Security Policy, as detailed in Attachment A to this resolution, has been duly reviewed and authored with the aim of establishing a standardized set of security measures for community events.
4. The City Council of the City of McFarland hereby adopts the Community Event Security Policy, as presented in Attachment A, and directs its implementation during all relevant community events to ensure their safety and security.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on April 11, 2024 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk
Community Event Security Policy
Policy Purpose: The purpose of a community event security policy is to ensure the safety and well-being of all participants, staff, and attendees during an event. It outlines guidelines, procedures, and protocols related to security measures such as crowd control, emergency response, access control, threat assessment, and communication strategies. The policy aims to prevent and mitigate potential security risks and incidents, promote a secure environment, and uphold the event’s reputation while complying with relevant legal and regulatory requirements.
Security Personnel: Deploy trained security personnel, including uniformed guards and plainclothes officers, to monitor the event premises and respond swiftly to security incidents. By integrating these considerations into our security policy, we can ensure that the number of security personnel is appropriately scaled based on event attendance and the potential risks associated with serving alcohol, thereby enhancing overall safety and security at community events.
Security personnel will be based on anticipated attendance and serving of alcohol, as listed below:
a) Event Attendance:
• Determine the number of security personnel needed based on the expected attendance and venue size.
• As a general guideline, calculate at least one security officer per 200-300 attendees for low-risk events. For higher-risk events or larger crowds, increase the ratio to one security officer per 100-200 attendees. • Consider factors such as the layout of the venue, multiple entry/exit points, and potential areas of congestion or high activity. b) Serving Alcohol:
• If alcohol is served at the event, adjust the security staffing accordingly due to the potential for increased risk.
• Increase the number of security personnel by at least 20-30% for events where alcohol is served, especially if the event is expected to have a higher likelihood of disruptive behavior.
Community Event Security Policy
• Ensure that security personnel are trained in handling situations related to alcohol intoxication, underage drinking, and managing intoxicated individuals in a professional and non-confrontational manner. • Collaborate with the venue’s staff or external security providers to monitor alcohol consumption, enforce legal drinking age restrictions, and prevent overconsumption or alcohol-related incidents.
c) Dynamic Staffing Approach:
• Implement a dynamic staffing approach where security personnel levels can be adjusted based on real-time observations and evolving event conditions.
• Have a reserve of additional security personnel on standby or available for quick deployment in case unexpected incidents or crowd dynamics require immediate reinforcement.
• Consider the duration of the event; longer events may require staggered shifts or rotation of security personnel to maintain alertness and effectiveness.
d) Risk Mitigation Strategies:
• Implement additional risk mitigation strategies for events with alcohol service, such as designated driver programs, alcohol-free zones, and monitoring of entrances/exits to prevent unauthorized access or disturbances.
• Coordinate with other local law enforcement agencies or alcohol regulatory bodies to ensure compliance with alcohol service regulations and to facilitate cooperation in case of alcohol-related incidents or emergencies.
Bag Checks: Implement bag checks at entry points to screen for prohibited items and weapons, enhancing the safety of attendees and preventing potential threats. . a) Purpose:
• The primary purpose of bag checks is to enhance the security of the event and prevent unauthorized items from entering the premises.
Community Event Security Policy
b) Scope:
• This policy applies to all attendees, including staff, volunteers, vendors, and guests, entering the event venue.
c) Bag Check Procedures:
• All bags, backpacks, purses, and similar items brought into the event will be subject to inspection.
• Trained security personnel will conduct bag checks at designated entry points.
• Attendees will be asked to open their bags for visual inspection. If necessary, they may be asked to remove items for further inspection. d) Prohibited Items:
• The McFarland Police Department will Clearly outline a list of prohibited items such as weapons, illegal substances, alcohol (if not permitted), large containers, fireworks, etc.
• Communicate that attendees found in possession of prohibited items will be denied entry or asked to leave the event immediately. e) Authorized Items:
• Specify what items are allowed, such as personal belongings, water bottles (if permitted), small snacks, etc.
• Encourage attendees to carry only necessary items to expedite the bag check process.
f) Staff Training:
• Ensure that security personnel conducting bag checks are adequately trained on the security policy, including how to handle different situations professionally and respectfully.
• Provide training on recognizing suspicious behavior or items that may pose a security risk.
g) Communications:
• Clearly communicate the bag check policy to attendees in advance through event invitations, posters, websites, and social media channels.
Community Event Security Policy
• Display signage at entry points reminding attendees of the bag check requirements.
h) Compliance and Enforcement:
• Emphasize the importance of compliance with the bag check policy for everyone’s safety.
• Define the steps for handling non-compliant individuals, including denial of entry, escorting out of the premises, and involving law enforcement if necessary.
i) Feedback and Improvement:
• Establish a mechanism for collecting feedback from attendees and staff regarding the bag check process to identify areas for improvement. • Regularly review and update the security policy based on feedback, lessons learned, and changes in security threats.
j) Legal Considerations:
• Ensure that the bag check policy complies with local laws and regulations regarding security measures and personal privacy.
Event fencing: Ensuring adequate vetting of attendees to deter gang activities and other criminal behavior may necessitate fencing the parameters of the events. All outdoor community events will be fenced unless The Chief of Police determines the event does not warrant the fencing of the event as detailed in this policy.
a) Purpose:
• The purpose of this policy is to establish guidelines and procedures for fencing community events to ensure the safety and security of attendees, staff, and participants. This policy specifically addresses events with a propensity for criminal activity, such as those involving gangs, while excluding events like grand openings, medical clinics, marathons, and others as determined by the Chief of Police.
b) Event Selection Criteria:
• Events that will be subject to fencing measures will be determined based on the following criteria:
Community Event Security Policy
▪ History of criminal activity or potential for criminal incidents, such as gang-related activities.
▪ Size and nature of the event, including expected attendance and level of security required.
▪ Recommendations and input from law enforcement agencies, community leaders, and event organizers.
c) Fencing Requirements
• Types of Fencing: Events identified for fencing will require the installation of appropriate barriers or fences to secure the event perimeter. • Height and Strength: Fences should be of sufficient height and strength to deter unauthorized entry and withstand external forces. • Access Points: Designated access points must be established and manned by security personnel to monitor entry and exit.
• Emergency Exits: Emergency exits should be clearly marked and easily accessible in case of evacuation.
• ADA Compliance: Ensure that fencing arrangements comply with the Americans with Disabilities Act (ADA) to accommodate individuals with disabilities.
Collaboration: Foster collaboration with local law enforcement agencies, emergency responders, and event organizers to coordinate security efforts and share relevant information.
The primary objective of this policy is to establish guidelines and procedures for ensuring security collaboration among all stakeholders involved in public events, with the aim of safeguarding participants, attendees, and the event itself. a) Stakeholders: This policy applies to event organizers, security personnel, law enforcement agencies, emergency response teams, venue management, and any other relevant parties involved in organizing or securing public events. b) Risk Assessment: Conduct a thorough risk assessment prior to the event to identify potential security threats and vulnerabilities. Consider factors such as crowd size, venue location, type of event, and historical incidents. c) Collaborative Planning:
Community Event Security Policy
• Pre-Event Meetings: Organize regular meetings involving all stakeholders to discuss security plans, roles, responsibilities, and communication protocols.
• Information Sharing: Share relevant information such as event schedules, participant profiles, threat intelligence, and emergency procedures among all involved parties.
• Security Briefings: Provide comprehensive security briefings to all security personnel, including contingency plans for various scenarios. d) Emergency Response:
• Emergency Plans: Develop and communicate clear emergency response plans covering scenarios like medical emergencies, natural disasters, terrorist threats, and crowd disturbances.
• Communication Channels: Establish reliable communication channels (e.g., radios, mobile phones, emergency hotlines) for quick coordination and dissemination of critical information during emergencies. e) Technology and Surveillance:
• CCTV Monitoring: Install CCTV cameras at strategic locations within the venue to monitor crowds, detect suspicious activities, and facilitate incident investigation if needed.
f) Post-Event Evaluation: After the event, conduct a debriefing session to evaluate security measures, identify areas for improvement, and gather feedback from stakeholders and participants.
g) Compliance and Review: Regularly review and update the security collaboration policy in response to changing security threats, regulatory requirements, and lessons learned from past events.
Public Awareness: Promote public awareness of security measures and encourage attendees to report suspicious activities or concerns to event staff or security personnel.
Community Event Security Policy
Continuous Evaluation: Conduct post-event evaluations to assess the effectiveness of security measures, identify areas for improvement, and incorporate lessons learned into future security planning.
Exclusion of Certain Events: Events such as grand openings, medical clinics, marathons, and others determined by the Chief of Police as not requiring fencing measures may be exempted from this policy. However, security measures appropriate to the nature of these events should still be implemented based on risk assessments and best practices.
Compliance and Enforcement: Event Organizers: Event organizers are responsible for complying with security requirements as outlined in this policy.
Enforcement: Failure to comply with this policy may result in penalties, fines, or denial of future event permits.
Review and Updates: This safety and security policy will be periodically reviewed and updated as needed to reflect changing security needs, legal requirements, and best practices in event management and safety.
Approval:
This policy is approved by the McFarland City Council and is effective as of [____________].
This policy serves as a framework to ensure that fencing and security measures are implemented effectively at community events with a higher risk of criminal activity while excluding events that do not pose similar security concerns.
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 17.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: April 11, 2024
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Brian Knox, Chief of Police
SUBJECT: APPROVAL OF RESOLUTION NO. 2024-43 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF MCFARLAND ADOPTING THE UNSOLVED
MAJOR CRIMES REWARD PROGRAM POLICY
SUMMARY:
The City of McFarland recognizes the detrimental impact of unsolved major crimes on public safety and community well-being. The Unsolved Major Crimes Reward Program aims to incentivize community members to come forward with valuable information that can assist law enforcement in solving these serious offenses. By offering rewards, we seek to foster a safer environment and promote collaboration between citizens and law enforcement agencies.
Staff has authored a policy outlining the procedure to determine the eligibility of these major crimes on a case by case basis. This policy will establish a board to determine the parameters of the reward based on how accurate, verifiable, actionable and significant the information is toward solving a given case. The reward program will be overseen by the City of McFarland's Ad Hoc committee, who will conduct a thorough review of each submission considering its relevance, reliability and impact on the case. This policy will also direct the City to engage in proactive public awareness to promote the Unsolved Major Crimes Reward Program.
FINANCIAL IMPACT:
There is no financial impact.
RECOMMENDATION:
Staff recommends the adoption of the Unsolved Major Crimes Reward Program Policy.
ATTACHMENTS:
1. Unsolved_Major_Crimes_Reward_Program_Policy (5)
RESOLUTION NO. 2024-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCFARLAND ADOPTING
THE UNSOLVED MAJOR CRIMES REWARD PROGRAM POLICY
WHEREAS, the City Council of the City of McFarland authorized an Unsolved Major Crimes Reward program; and
WHEREAS, the City of McFarland does not have a policy for the Unsolved Major Crimes Reward program; and
WHEREAS, the City Council of the City of McFarland needs to approve the Unsolved Major Crimes Reward program policy.
WHEREAS, the proposed policy outlines comprehensive eligibility criteria, reward determination processes, transparent distribution protocols, and measures for program evaluation and refinement; and
WHEREAS, the successful implementation of this policy requires the cooperation and support of city officials, law enforcement agencies, and the community at large; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of McFarland that it hereby finds and determines as follows:
1. Adoption of Policy: The City Council hereby adopts the Unsolved Major Crimes Reward Program Policy, as attached to this resolution, effective immediately upon its adoption.
2. Implementation: The City Council directs the Chief of Police to implement the Unsolved Major Crimes Reward Program Policy in accordance with established procedures, ensuring that the program operates effectively, efficiently, and equitably.
3. Effective Date: This resolution and the Unsolved Major Crimes Reward Program Policy shall become effective immediately upon the adoption by the City Council.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of McFarland on April 11, 2024 by the following vote:
Aye Nae Abstain Absent
Saul Ayon
Ricardo Cano
Amador Ayon
Anita Gonzalez
María T. Pérez
CITY OF MCFARLAND
____________________________
Saul Ayon, Mayor
ATTEST:
_____________________________
Francisca Alvarado, City Clerk
I, _________________________, City Clerk of the City of McFarland, California, DO HEREBY CERTIFY that the foregoing resolution is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of McFarland on the date and by the vote indicated herein. _____________________________
Francisca Alvarado, City Clerk
Policy
208
City of McFarland
Policy Manual
Copyright Lexipol, LLC 2024/04/05, All Rights Reserved.
Published with permission by City of McFarland
***DRAFT*** Unsolved Major Crimes Reward Program
Policy - 1
Unsolved Major Crimes Reward Program Policy
208.1 POLICY
The City of McFarland recognizes the detrimental impact of unsolved major crimes on public safety and community well-being. The Unsolved Major Crimes Reward Program aims to incentivize community members to come forward with valuable information that can assist law enforcement in solving these serious offenses. By offering rewards, we seek to foster a safer environment and promote collaboration between citizens and law enforcement agencies. 208.2 ELIGIBILITY
a. The program encompasses major crimes such as homicides, kidnappings, sexual assaults, armed robberies, and other significant offenses that fall under the jurisdiction of the City of McFarland.
b. Eligible individuals or entities include witnesses, informants, community organizations, and concerned citizens who provide substantial and credible information leading to the arrest and conviction of suspects or the resolution of a major crime. 208.3 REWARD AMOUNT DETERMINATION
a. The reward amount will be determined based on various factors, including the quality, relevance, and timeliness of the information provided, as well as its significance in advancing the investigation and leading to a successful resolution.
b. The Ad Hoc committee will oversee the process of rewards with assistance from representatives of law enforcement, legal experts, and will carefully evaluate each case and determine eligibility. c. The reward application will then be presented to the City Council who will determine the appropriate reward amount, ensuring fairness and consistency. 208.4 DISTRIBUTION PROCESS
a. Upon the successful resolution of a major crime facilitated by information provided through the program, the reward committee will authorize the distribution of the reward.b. The City Finance Division, in coordination with law enforcement officials, will ensure that rewards are distributed promptly and securely to the eligible individuals or entities. c. Transparent and auditable distribution procedures will be followed, with detailed records maintained for accountability and verification purposes. d. Active involvement from community members, victims' families, and other entities as donors is allowed and will be coordinated by the City Finance Department. 208.5 REPORTING AND SUBMISSION PROCEDURES
a. Individuals with information pertaining to unsolved major crimes are encouraged to report directly to designated law enforcement agencies or designated city officials responsible for the reward program.
City of McFarland
Policy Manual
Unsolved Major Crimes Reward Program Policy
Copyright Lexipol, LLC 2024/04/05, All Rights Reserved.
Published with permission by City of McFarland ***DRAFT*** Unsolved Major Crimes Reward Program Policy - 2
b. The information provided must be accurate, verifiable, and actionable, contributing significantly to advancing the investigation or identifying suspects. c. Anonymity and confidentiality will be respected to protect the safety and privacy of informants, in accordance with applicable laws and protocols.
208.6 EVALUATION AND DECISION PROCESS
a. The Ad Hoc committee will conduct a thorough review of each submission, considering its relevance, reliability, and impact on the case.
b. Expert analysis, forensic evidence, witness statements, and corroborating information will be utilized to validate the role of the information in solving the major crime. c. The committee's decision regarding reward eligibility and amount will be based on objective criteria and professional judgment, with opportunities for appeal or clarification if needed. d. The committee will present the information and recommendation to the City Council, who will make a final determination as to the amount of the reward. 208.7 PROGRAM MONITORING AND REVIEW
a. The Unsolved Major Crimes Reward Program will undergo regular monitoring and evaluation to assess its effectiveness, efficiency, and community engagement levels. b. Feedback mechanisms, including surveys, public forums, and consultations with stakeholders, may be utilized to gather input and suggestions for program improvement. c. Program policies, procedures, and reward criteria will be reviewed periodically to align with evolving law enforcement practices, community needs, and best practices in crime prevention. 208.8 LEGAL AND ADMINISTRATIVE CONSIDERATIONS
a. Participation in the program does not create legal obligations beyond the terms outlined in this policy, and rewards are subject to availability of funds allocated by the City Council. b. The City reserves the right to modify, suspend, or terminate the program based on changing circumstances, budgetary constraints, or operational considerations, with appropriate public notice and communication.
208.9 PUBLIC AWARENESS AND OUTREACH
a. The City will engage in proactive public awareness campaigns to promote knowledge of the Unsolved Major Crimes Reward Program, its objectives, eligibility criteria, and reporting mechanisms.
b. Collaboration with local media, community groups, educational institutions, and businesses will be encouraged to reach a diverse audience and encourage community participation in crime prevention efforts.
City of McFarland
Policy Manual
Unsolved Major Crimes Reward Program Policy
Copyright Lexipol, LLC 2024/04/05, All Rights Reserved.
Published with permission by City of McFarland ***DRAFT*** Unsolved Major Crimes Reward Program Policy - 3
208.10 EFFECTIVE DATE AND IMPLEMENTATION
This policy shall be effective upon approval by the City Council and shall be implemented by designated city officials and law enforcement agencies in accordance with established procedures.
This policy provides a detailed framework for the City of McFarland's Unsolved Major Crimes Reward Program, encompassing comprehensive eligibility criteria, rigorous evaluation processes, transparent distribution protocols, and ongoing program evaluation and refinement measures.
City of McFarland
City Council Meeting
STAFF REPORT
Agenda Item No. 18.
Section: ADMINISTRATIVE
AGENDA
Meeting Date: April 11, 2024
TO: Honorable Mayor and Council Members
FROM: Diego Viramontes, City Manager
Francisca Alvarado, City Clerk
SUBJECT: UPDATE LIST OF COUNCIL MEMBERS ON SUBCOMMITTEES AND SPECIAL DISTRICT COMMITTEES.
SUMMARY:
Many elected bodies divide into subcommittees to study specific matters impacting their communities. Subcommittees can facilitate the decision-making process on critical items and preform the following functions:
• Clearly define the mission before creating a subcommittee. • Set deadlines for reports.
• Monitor assignments to check on progress.
• Rotate membership periodically.
• Keep nonmembers informed of meetings and action.
• Monitor the amount of staff effort required.
• Review the list of subcommittees annually and delete those that are no longer necessary.
FINANCIAL IMPACT:
None
RECOMMENDATION:
Staff recommends the City Council review and update members on the Subcommittee List and Special District Committees.
ATTACHMENTS:
1. Subcommittee List
SUBCOMMITTEES AND SPECIAL DISTRICT COMMITTEES
REVISED and APPROVED: April 27, 2023
1. Kern Council of Governments (KCOG)
Primary: Mayor Saul Ayon - Alternate: Vice Mayor Ricardo Cano
2. Kern Economic Development Corp. (KEDC)
Primary: Mayor Saul Ayon - Alternate: Vice Mayor Ricardo Cano
3. San Joaquin Valley Air Pollution Control District (SJV) Primary: Councilmember Amador Ayon - Alternate: Councilmember Anita Gonzalez
4. Delano Mosquito Abatement District (DMAD)
Vice Mayor Ricardo Cano
5. Poso Creek (IRWMP)
Councilmember Anita Gonzalez
6. Kern Local Agency Formation Commission (LAFCO)
Mayor Saul Ayon
7. Public Policy and Finance Committee
Mayor Saul Ayon, & Councilmember Anita Gonzalez
8. Public Safety Committee
Mayor Saul Ayon & Vice Mayor Ricardo Cano
9. Quality of Life Committee
Councilmember Anita Gonzalez, & Councilmember Amador
Ayon
10. Ad Hoc Committee (not a brown act committee)
Mayor Saul Ayon & Councilmember Maria Pérez
11. Cannabis Committee
Mayor Saul Ayon & Councilmember Maria Pérez