Napa City Council
February 18, 2025

X[X[~g,%/FFX[gEFgɠ/g~L%FX
FFl?LEX[
-
F_0w

&0FF0?[
XL[g
&L[g-
~
[
F
;lF
ƋƈǿƊƈƊƌ
0g~L&FX
?0&L[F0
ATTACHMENT 1

&,7<2)1$3$&$/,)251,$

$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW

)RUWKH<HDU(QGHG-XQH

























3UHSDUHG%\

)LQDQFH'HSDUWPHQW

ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

IN

TRODUCTORY SECTION
Trans
mittal Letter ............................................................................................................................................... i Organizational Chart ......................................................................................................................................... v Principal Officials .............................................................................................................................................. vi City Map .......................................................................................................................................................... vii Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association .............................................................................................. viii

FINANCIAL SECTION

INDEPENDE
NT AUDITORS’ REPORT ................................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) ....................................................................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................................ 17 Statement of Activities and Changes in Net Position .............................................................................. 18 Fund Financial Statements:

Governmental Funds Financial Statements:

Balance Sheet ................................................................................................................................... 22 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ...................................................................... 25 Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... 26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ..................................................................... 28 Proprietary Funds Financial Statements:

Statement of Net Position ................................................................................................................. 30 Statement of Revenues, Expenses and Changes in Fund Net Position .......................................... 31 Statement of Cash Flows .................................................................................................................. 32 Fiduciary Funds Financial Statements:

Statement of Fiduciary Net Position .................................................................................................. 36 Statement of Changes in Fiduciary Net Position .............................................................................. 37 Notes to the Basic Financial Statements ................................................................................................... 43 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

Requir
ed Supplementary Information (Unaudited):

Budgetary Information .................................................................................................................................... 93 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budgetary and Actual – General Fund and Major Special Revenue Funds:

General Fund ........................................................................................................................................... 94 Development Impact Fees Special Revenue Fund ................................................................................. 95 HOME Program Special Revenue Fund ................................................................................................. 96 Housing Special Revenue Fund .............................................................................................................. 97 Schedule of Changes in the Net Pension Liability and Related Ratios ......................................................... 98 Schedule of Changes in Net OPEB Liability ................................................................................................ 102 Schedule of Contributions – Pension and OPEB ......................................................................................... 104 Supplementary Information
Nonmajor Governmental Funds:

Combining Balance Sheets ................................................................................................................... 108 Combining Statements of Revenues, Expenditures, and Change in Fund Balance ............................. 114 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Nonmajor Special Revenue Funds:

Assessment District Special Revenue Fund ................................................................................... 120 Tourism Improvement District Special Revenue Fund .................................................................... 121 Community Development Block Grant Special Revenue Fund ....................................................... 122 Traffic Special Revenue Fund ............................................................................................................ 123 Parking Special Revenue Fund .......................................................................................................... 124 CalHome Grant Special Revenue Fund ............................................................................................. 125 Public Safety Programs Special Revenue Fund ................................................................................ 126 Parks and Recreation Trust Programs Special Revenue Fund ......................................................... 127 Public Infrastructure Program ............................................................................................................. 128 Business District Special Revenue Fund ........................................................................................ 129 Property and Business Improvement Special Revenue Fund ........................................................... 130 Damage Reimbursement Special Revenue Fund ........................................................................... 131 Permanent Local Housing Allocation Special Revenue Fund ......................................................... 132 Road Maintenance and R
ehabilitation Act Special Revenue Fund ................................................... 133 Gas Tax Special Revenue Fund ........................................................................................................ 134 Measure T Special Revenue Fund .................................................................................................. 135 Measure F Special Revenue Fund .................................................................................................. 136 Encampment Resolution Grant Special Revenue Fund .................................................................. 137 Golf Course Special Revenue Fund ................................................................................................ 138 Enhanced Infrastructure Financing District Special Revenue Fund ................................................ 139 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Major Capital Projects Fund:

City Capital Projects Fund .............................................................................................................. 140 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA

Annual Comprehensive Financial Report

For the Year Ended June 30, 2024

Table of Contents

Page

Internal Service Funds:

Combining Statement of Net Position.................................................................................................... 142 Combining Statements of Revenues, Expenses, and Change in Net Position ..................................... 144 Combining Statement of Cash Flows .................................................................................................... 146

STATISTICAL SECTION (Unaudited)

Financial Trends:

Description of Statistical Section Contents ...................................................................................................... 153 Net Position by Component ............................................................................................................................. 154 Changes in Net Position .................................................................................................................................. 156 Fund Balance of Government Funds ............................................................................................................... 162 Changes in Fund Balances of Governmental Funds ...................................................................................... 164

Revenue Capacity:

Assessed Value of Taxable Property – Last Ten Fiscal Years .................................................................... 166 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ......................................................... 167 Principal Property Taxpayers ....................................................................................................................... 168 Property Tax Levies and Collections ........................................................................................................... 169

Debt Capacity:

Ratios of Outstanding Debt by Type ............................................................................................................ 170 Direct and Overlapping Debt ........................................................................................................................ 173 Legal Debt Margin ........................................................................................................................................ 174 Pledged Revenue Coverage ........................................................................................................................ 176

Demographic and Economic Information:

Demographic and Economic Statistics ....................................................................................................... 177 Principal Employers .................................................................................................................................... 178 Full Time Equivalent City Government Employees by Function/Program ................................................. 179

Operating Information:

Operating Indicators by Function/Program .................................................................................................. 180 Capital Assets Statistics by Function ........................................................................................................... 182

ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
ATTACHMENT 1

0Fg[LlgL[~
_
g0LF
g[F_E0gg??
gg
[
L['F0ƒg0LF?-[g
X[0F0X?L&&00?_
0g~EX
'&L
[g0&0g

ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
ATTACHMENT 1






-DQXDU\

7RWKH+RQRUDEOH0D\RU0HPEHUVRIWKH&LW\&RXQFLODQG&LWL]HQVRIWKH&LW\RI1DSD 

&DOLIRUQLDODZUHTXLUHVWKDWDOOJHQHUDOSXUSRVHORFDOJRYHUQPH QWVSXEOLVKDFRPSOHWHVHWRIILQDQFLDOVWDWHPHQWV SUHVHQWHGLQFRQIRUPLW\ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD *$$3
DQG
DXGLWHGE\DILUPRIOLFHQVHGFHUWLILHGSXEOLFDFFRXQWDQWVLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHG LQWKH8QLWHG6WDWHVRI $PHULFD3XUVXDQWWRWKDWUHTXLUHPHQWZHDUHSOHDVHGWRSUHVHQWWKH $QQXDO&RPSUHKHQVLYH )LQDQFLDO5HSRUW
$&)5
RIWKH&LW\RI1DSDIRUWKHILVFDO\HDUHQGHG-XQH7KHILVFDO\HDUFRYHUVILQDQFLDO WUDQVDFWLRQVIURP-XO\WR-XQHRQDPRGLILHGRUIXOODFFUXDOEDVLVGHSHQGLQJRQWKHIXQGW\SH 
&LW\PDQDJHPHQWDVVXPHVIXOOUHVSRQVLELOLW\IRUWKHFRPSOHWHQHVVDQGUHOLDELOLW\RIDOORIWKHLQIRUPDWLRQSUHVHQWHG LQWKLVUHSRUW7KH&LW\KDVHVWDEOLVKHGDFRPSUHKHQVLYHLQWHUQDOFRQWUROIUDPHZRUNWKDWLVGHVLJQHGERWKWRSURWHFW WKH&LW\
VDVVHWVIURPORVVWKHIWRUPLVXVHDQGSURYLGHVVXII LFLHQWO\UHOLDEOHLQIRUPDWLRQWKDWWKH&LW\RI 1DSD V
ILQDQFLDOVWDWHPHQWVDUHLQFRQIRUPLW\ZLWK*$$3 7KHFRVWRILQWHUQDOFRQWUROVVKRXOGQRWRXWZHLJKWKHLUEHQHILWV DQG WKH LQWHUQDO FRQWUROV DUH GHVLJQHG WR SURYLGH UHDVRQDEOH UDWKHU WKDQ DEVROXWH DVVXUDQFH WKDW WKH ILQDQFLDO VWDWHPHQWVZLOOEHIUHHIURPPDWHULDOPLVVWDWHPHQW&LW\PDQDJH PHQWDVVHUWVWKDWWRWKHEHVWRIRXUNQRZOHGJH DQGEHOLHIWKLVILQDQFLDOUHSRUWLVFRPSOHWHDQGUHOLDEOHLQDOOPDWHULDOUHVSHFWV 
7KH&LW\RI1DSD¶VILQDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\/D QFH6ROO /XQJKDUG//3 DOLFHQVHGFHUWLILHG SXEOLFDFFRXQWLQJILUP7KHJRDORIWKHLQGHSHQGHQWDXGLWZDVWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKHILQDQFLDO VWDWHPHQWVRIWKH&LW\RI1DSDIRUWKHILVFDO\HDUHQGHG-XQH DUHIUHHRIPDWHULDOPLVVWDWHPHQW7KH LQGHSHQGHQWDXGLWLQYROYHGH[DPLQLQJRQDWHVWEDVLVHYLGHQFHVXSSRUWLQJDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDO

VWDWHPHQWV
 DVVHVVLQJ WKH DFFRXQWLQJ SULQFLSOHV XVHG DQG VLJQLI LFDQW HVWLPDWHV PDGH E\ PDQDJHPHQW  DQG
HYDOXDWLQJWKHRYHUDOOILQDQFLDOVWDWHPHQWSUHVHQWDWLRQ7KHLQGHSHQGHQWDXGLWRUVFRQFOXGHGEDVHGXSRQWKHDXGLW WKDW WKHUH ZDV D UHDVRQDEOH EDVLV IRU UHQGHULQJ DQ XQPRGLILHG RSLQLRQ FOHDQ RSLQLRQ
 WKDW WKH &LW\ RI 1DSD¶V
ILQDQFLDO VWDWHPHQWV IRU WKH ILVFDO \HDU HQGHG -XQH   DUH IDLUO\ SUHVHQWHG LQ FRQIRUPLW\ ZLWK *$$3 7KH LQGHSHQGHQWDXGLWRU¶VUHSRUWLVSUHVHQWHGDVWKHILUVWFRPSRQHQWRIWKHILQDQFLDOVHFWLRQRIWKLVUHSRUW 
7KHLQGHSHQGHQWDXGLWRIWKHILQDQFLDOVWDWHPHQWVRIWKH&LW\LVSDUWRIDEURDGHUIHGHUDOO\PDQGDWHG³6LQJOH$XGLW´ GHVLJQHGWRPHHWWKHVSHFLDOQHHGVRIIHGHUDOJUDQWRUDJHQFLHV7KHVWDQGDUGVJRYHUQLQJ6LQJOH $XGLWHQJDJHPHQWV UHTXLUHWKHLQGHSHQGHQWDXGLWRUWRUHSRUWQRWRQO\RQWKHIDLUSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWVEXWDOVRRQ WKH DXGLWHG JRYHUQPHQW¶V LQWHUQDO FRQWUROV DQG FRPSOLDQFH LQYROYLQJ WKH DGPLQLVWUDWLRQ RI IHGHUDO DZDUGV 7KH 6LQJOH$XGLWUHSRUWLQFOXGHVWKH6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGV)LQGLQJVDQG5HFRPPHQGDWLRQVDQG DQDXGLWRUV¶UHSRUWRQWKHLQWHUQDOFRQWUROVWUXFWXUHDQGFRPSOLDQFHZLWKDSSOLFDEOHODZVDQGUHJXODWLRQV7KLVUHSRUW LVDVHSDUDWHO\LVVXHG6LQJOH$XGLW5HSRUWDQGLVQRWLQFOXGHGKHUHLQ i
ATTACHMENT 1



7KLV$&)5FRQWDLQVILQDQFLDOLQIRUPDWLRQDQGGDWDXVLQJWKHILQDQFLDOUHSRUWLQJIRUPDWHVWDEOLVKHGIRUJRYHUQPHQWV E\ WKH *RYHUQPHQWDO$FFRXQWLQJ 6WDQGDUGV %RDUG
*$6%
 7KH *$6% VHWV DFFRXQWLQJ DQG ILQDQFLDO UHSRUWLQJ VWDQGDUGV IRU JRYHUQPHQWV LQ WKH 8QLWHG 6WDWHV RI $PHULFD 7KH ILQDQFLDO UHSRUWLQJ VWDQGDUGV UHTXLUH WKDW PDQDJHPHQWSURYLGHDQDUUDWLYHLQWURGXFWLRQRYHUYLHZDQGDQDO\VLVWRDFFRPSDQ\WKHEDVLFILQDQFLDOVWDWHPHQWV LQWKHIRUPRI0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
0' $
7KLVOHWWHURIWUDQVPLWWDOLVGHVLJQHGWRFRPSOHPHQW WKH0' $DQGVKRXOGEHUHDGLQFRQMXQFWLRQZLWKLW

,PPHGLDWHO\IROORZLQJWKHUHSRUWRIWKHLQGHSHQGHQWDXGLWRUV¶\RXZLOOILQGWKH&LW\RI1DSD¶V0' $ 
3URILOHRIWKH*RYHUQPHQW

7KH&LW\RI1DSDZDVIRXQGHGLQDQGLQFRUSRUDWHGLQ7KH&LW\LVORFDWHGLQWKHQRUWKHUQSDUWRI&DOLIRUQLD DERXWPLOHVQRUWKRI6DQ)UDQFLVFRDQGLVWKHODUJHVWFLW\L Q1DSD&RXQW\&DOLIRUQLD6WDWH+LJKZD\ UXQV
WKURXJK1DSDFRQQHFWLQJLWWR9DOOHMRDQGWKH(DVW%D\$UHDWRWKHVRXWKDQGWKH1DSD:LQH&RXQWU\WRWKHQRUWK &DOLIRUQLD6WDWH+LJKZD\UXQVWRWKHVRXWKRIWKH&LW\FRQQHFWLQJLWWR)DLUILHOGDQG,QWHUVWDWHWRWKHHDVWDQG 6RQRPDDQG86WRWKHZHVW7KH1DSD5LYHUWUDYHUVHVWKH&LW\RQLWVMRXUQH\WRWKH6DQ3DEOR%D\7KH&LW\ RI1DSDFXUUHQWO\RFFXSLHVVTXDUHPLOHVVTXDUHPLOHVRIZKLFKLVODQGDQGVTXDUHPLOHVRIZKLFKLV ZDWHU7KH&LW\VHUYHVDSRSXODWLRQRI
UHVLGHQWVDQGUHFHLYHVSURSHUW\WD[HVOHYLHGRQUHDODQGSHUVRQDO SURSHUW\ORFDWHGZLWKLQLWVERXQGDULHV

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
7KH&LW\RI1DSDSURYLGHVDZLGHUDQJHRIPXQLFLSDOVHUYLFHVLQ FOXGLQJWKHIROORZLQJ SROLFHDQGILUHSURWHFWLRQ

UHFUHDWLRQDO DFWLYLWLHV
 FRPPXQLW\ DQG HFRQRPLF GHYHORSPHQW
 VWUHHW LPSURYHPHQW DQG PDLQWHQDQFH VHUYLFHV

SDUNVPDLQWHQDQFH
ZDWHU
VROLGZDVWHDQGUHF\FOLQJ
JHQHUDODGPLQLVWUDWLYHDQGVXSSRUWVHUYLFHV

7KHDQQXDOEXGJHWVHUYHVDVWKHIRXQGDWLRQRIWKH&LW\RI1DSD¶VILQDQFLDOSODQQLQJDQGFRQWURO$OOGHSDUWPHQWVRI WKH&LW\DUHUHTXLUHGWRVXEPLWUHTXHVWVIRUDSSURSULDWLRQVWRWKH&LW\0DQDJHUE\$SULO7KH&LW\0DQDJHUXVHV WKHVHUHTXHVWVDVWKHVWDUWLQJSRLQWIRUGHYHORSLQJDSURSRVHGDQQXDOEXGJHW7KH&LW\0DQDJHUWKHQSUHVHQWVWKH SURSRVHGEXGJHWWRWKH&LW\&RXQFLOIRUUHYLHZSULRUWR-XQH7KH&LW\&RXQFLOLVUHTXLUHGWRKROGSXEOLFKHDULQJV RQWKHSURSRVHGEXGJHWDQGWRDGRSWDILQDOEXGJHWE\QRODWHU WKDQ-XQHWKHFORVHRIWKH&LW\¶VILVFDO\HDU 7KURXJKRXWHDFKILVFDO\HDUWKH&LW\&RXQFLOUHYLHZVWKHEXGJHWDQGDGMXVWVDVQHHGHG 
7KHEXGJHWLVSUHSDUHGE\IXQGDQGE\SURJUDPZLWKLQHDFKGHSDUWPHQW'HSDUWPHQWPDQDJHUVPD\PDNHWUDQVIHUV RIDSSURSULDWLRQVZLWKLQDGHSDUWPHQWH[FHSWIRUSHUVRQQHOUHODWHGEXGJHWVZKLFKUHTXLUH&LW\0DQDJHUDSSURYDO %XGJHWDGMXVWPHQWVEHWZHHQIXQGVRUIRU&,3SURMHFWVUHTXLUH&LW\&RXQFLODSSURYDO7KHOHYHORIEXGJHWDU\FRQWURO WKHOHYHODWZKLFKH[SHQGLWXUHVFDQQRWOHJDOO\H[FHHGWKHDSSURSULDWHGDPRXQWLVHVWDEOLVKHGDWWKHIXQGOHYHO7KH EXGJHWV DUH DGRSWHG RQ D EDVLV VXEVWDQWLDOO\ FRQVLVWHQW ZLWK JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV *$$3

([SHQGLWXUHVDERYHWKHDSSURSULDWHGDPRXQWUHTXLUHDSSURYDOE\WKH&LW\&RXQFLO 
ii
ATTACHMENT 1



(FRQRPLF&RQGLWLRQVDQG2XWORRN

7KH &LW\ RI 1DSD EHQHILWV IURP D GLYHUVH UHYHQXH EDVH VKDUHG DPRQJ 3URSHUW\ 7 D[HV  RI *HQHUDO )XQG
UHYHQXHV LQ )< 
 7UDQVLHQW 2FFXSDQF\ 7 D[HV
 RI *HQHUDO )XQG UHYHQXHV
 DQG 6DOHV 7 D[HV

RI*HQHUDO)XQGUHYHQXHV
2WKHUUHYHQXHVLQFOXGHSHUPLWV IUDQFKLVHIHHVEXVLQHVVOLFHQVHIHHVFKDUJHV IRUVHUYLFHVDQGYDULRXV3XEOLF6DIHW\JUDQWV
RI*HQHUDO)XQGUHYHQXHV
7KH&LW\LVZLWKLQDZRUOGUHQRZQHG
ZLQHUHJLRQDQGKDVGHYHORSHGLQWRDVWURQJGHVWLQDWLRQFRPPXQLW\ 
7 RXULVPLQWKH1DSD9DOOH\FRQWLQXHVWRSURYLGHDVWURQJIRXQGDWLRQIRU1DSD¶VHFRQRP\$VRIWKHHQGRIWKHILVFDO \HDUWKHUHZHUHKRWHOVPRWHOVEHGDQGEUHDNIDVWHVWDEOL VKPHQWV QRQKRVWHGDQGKRVWHGYDFDWLRQ
UHQWDOVJHQHUDWLQJWUDQVLHQWRFFXSDQF\WD[UHYHQXHZLWKLQWKH&LW\ 
7KHWRSWKUHHVDOHVWD[JHQHUDWLQJLQGXVWULHVLQ1DSDFRQWLQXHWREHUHVWDXUDQWDQGKRWHOJHQHUDOFRQVXPHUJRRGV DQGDXWRDQGWUDQVSRUWDWLRQ7KHUHVWDXUDQWDQGKRWHOLQGXVWU\DQGDXWRDQGWUDQVSRUWDWLRQVKRZHGWKHJUHDWHVW LQFUHDVHLQILVFDO\HDU,QDOO*HQHUDO*RYHUQPHQWVDOHV WD[UHFHLSWVLQFUHDVHGE\ RYHUWKHSULRUILVFDO
\HDU

2Q -XQH   WKH &LW\ &RXQFLO XQDQLPRXVO\ YRWHG WR SODFH 0HDVXUH * RQ WKH 1RYHPEHU   JHQHUDO PXQLFLSDO HOHFWLRQ EDOORW 0HDVXUH * DSSURYHG E\D PDMRULW\ RI 1DSD YRWHUV HVWDEOLVKHV D QHZ ORFDO VDOHV WD[ IURPWRWKDWLVH[SHFWHGWRJHQHUDWHDQHVWLPDWHGPLOOLRQDQQXDOO\WRIXQGHVVHQWLDOVHUYLFHVDQG SURYLGHUHVRXUFHVQHFHVVDU\WRHQKDQFHURDGPDLQWHQDQFHUHSDLU VLGHZDONVUHYLWDOL]HSDUNVDQGVXSSRUWSXEOLF VDIHW\DQGRWKHUFULWLFDOVHUYLFHV7KHQHZVDOHVWD[UDWHJRHVLQWRHIIHFW$SULO 
7KH&LW\FRQWLQXHVWRPDLQWDLQ*HQHUDO)XQGUHVHUYHVDW&LW\&RXQFLO VHVWDEOLVKHGILVFDOSROLF\OHYHORIRIWKH
RSHUDWLQJ EXGJHW  $SSUR[LPDWHO\ 
 PLOOLRQ RI FRQWULEXWLRQV ZHUH PDGH LQ ILVF DO \HDU  WR PDLQWDLQ FRPSOLDQFHZLWKILVFDOSROLF\7KH(PHUJHQF\5HVHUYHEDODQFHH QGHGWKH\HDUDWPLOOLRQWKH2SHUDWLQJ 5HVHUYHDW
PLOOLRQDQGWKH&RQWLQJHQF\5HVHUYHDW
PLOOLRQ7 RWDOUHVHUYHVDUHPLOOLRQRU RI*HQHUDO)XQGDFWXDORSHUDWLQJH[SHQGLWXUHV,QDGGLWLRQWKH &LW\PDLQWDLQVD&,3*HQHUDO5HVHUYHDQGD&,3 )DFLOLWLHV5HVHUYHZKLFKZHUHERWKIXOO\IXQGHGWRILVFDOSROLF\OHYHOVLQILVFDO 
/RQJ7HUP)LQDQFLDO3ODQQLQJ

7KH&LW\XSGDWHVD/RQJ7 HUP)LQDQFLDO)RUHFDVW
/7))
RQDQDQQXDOEDVLVWRSURYLGHDIRUZDUGORRNDWWKH&LW\¶V *HQHUDO )XQG RSHUDWLQJ UHYHQXHV DQG H[SHQGLWXUHV ,WV SXUSRVH L V WR LGHQWLI\ ILQDQFLDO WUHQGV VKRUWIDOOV RSSRUWXQLWLHVDQGLVVXHVVRWKH&LW\FDQSURDFWLYHO\DGGUHVVWKHP,WGRHVVRE\SURMHFWLQJWKHIXWXUHILVFDOUHVXOWV RIFRQWLQXLQJWKH&LW\¶VFXUUHQWVHUYLFHOHYHOVDQGSROLFLHV7KH/7))OD\VWKHIRXQGDWLRQIRUWKHEXGJHWDLGLQJERWK WKH&LW\0DQDJHUDQG&LW\&RXQFLOLQHVWDEOLVKLQJSULRULWLHVDQGDOORFDWLQJUHVRXUFHVDSSURSULDWHO\ 
$ZDUGV

7KH*RYHUQPHQW)LQDQFH2IILFHUV$VVRFLDWLRQRIWKH8QLWHG6WDWHVDQG&DQDGD *)2$
DZDUGHGD&HUWLILFDWHRI
$FKLHYHPHQW IRU ([FHOOHQFH LQ )LQDQFLDO 5HSRUWLQJ WR WKH &LW\ RI 1DSD IRU LWV$QQXDO &RPSUHKHQVLYH )LQDQFLDO 5HSRUWIRUWKHILVFDO\HDUHQGHG-XQH7KLVZDVWKHWH QWKFRQVHFXWLYH\HDUWKDWWKH&LW\DFKLHYHGWKLV SUHVWLJLRXVDZDUG,QRUGHUWREHDZDUGHGD&HUWLILFDWHRI$FKLHYHPHQWDJRYHUQPHQWDOXQLWPXVWSXEOLVKDQHDVLO\ UHDGDEOHDQGHIILFLHQWO\RUJDQL]HG$&)5ZKRVHFRQWHQWVFRQIRUP WRSURJUDPVWDQGDUGV7KLVUHSRUWPXVWVDWLVI\ ERWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVDQGDSSOLFDEOHOHJDOUHTXLUHPHQWV iii
ATTACHMENT 1



$&HUWLILFDWHRI$FKLHYHPHQWLVYDOLGIRUDSHULRGRIRQH\HDU RQO\:HEHOLHYHRXUFXUUHQWDQQXDOFRPSUHKHQVLYH ILQDQFLDOUHSRUWFRQWLQXHVWRPHHWWKH&HUWLILFDWHRI$FKLHYHPH QW3URJUDP¶VUHTXLUHPHQWVDQGZHDUHVXEPLWWLQJLW WRWKH*)2$WRGHWHUPLQHLWVHOLJLELOLW\IRUDQRWKHUFHUWLILFDWH 
$FNQRZOHGJPHQWV

7KH SUHSDUDWLRQ RI WKLV UHSRUW ZRXOG QRW KDYH EHHQ SRVVLEOH ZLWKRXW WKH KDUG ZRUN DQG GHGLFDWLRQ RI WKH HQWLUH )LQDQFH'HSDUWPHQW,QDGGLWLRQWKDQNVWRDOO&LW\GHSDUWPHQWVIRUWKHLUDVVLVWDQFHLQSURYLGLQJWKHGDWDQHFHVVDU\ WRSUHSDUHWKLVUHSRUW:HZRXOGDOVROLNHWRH[SUHVVRXUDSSUHFLDWLRQWRWKH0D\RUDQG&LW\&RXQFLOIRUWKHLUXQIDLOLQJ VXSSRUWIRUPDLQWDLQLQJWKHKLJKHVWVWDQGDUGVRISURIHVVLRQDOLVPLQWKHILQDQFLDOPDQDJHPHQWRIWKH&LW\RI1DSD 
  5DMQHLO3UDVDG3DXO3KDQJXUHK&3$&,$&*$3 )LQDQFH'LUHFWRU'HSXW\)LQDQFH'LUHFWRU 


iv
ATTACHMENT 1



 






































 







 














!

"#

$


!
" # $"

%










 %


 

&

%


&

'



%
%

(











'

'



'

(




)






'%


*(+
'

) 










%


! 
'


)







,


%%


*



!




)'
) 



- 


(
)








*



%
)


*





)








.'











)








Eldredge
Molly Rattigan (Interim)
v
ATTACHMENT 1






$118$/&2035(+(16,9(),1$1&,$/5(3257
-XQH

Mission Statement
"Rooted in public service, our mission is to grow a vibrant, sustainable community for all who live in, work in and visit the City of Napa, through thoughtful leadership and dedication to excellence."
&,7<&281&,/
6FRWW6HGJOH\0D\RU
%HUQLH1DUYDH]9LFH0D\RU
/L]$OHVVLR&RXQFLO0HPEHU
0DU\/XURV&RXQFLO0HPEHU
%HWK3DLQWHU&RXQFLO0HPEHU

&,7<67$))
6WHYH3RWWHU&LW\0DQDJHU
&KULVWRSKHU-'LD]
,QWHULP
&LW\$WWRUQH\
7LIIDQ\&DUUDQ]D&LW\&OHUN
/L]+DENLUN$VVLVWDQW&LW\0DQDJHU
=DFK&XUUHQ)LUH&KLHI
+HDWKHU5XL]+XPDQ5HVRXUFHV'LUHFWRU
-R\(OGUHGJH8WLOLWLHV'LUHFWRU
-XOLH/XFLGR3XEOLF:RUNV'LUHFWRU
-HQQLIHU*RQ]DOHV3ROLFH&KLHI
5DMQHLO3UDVDG)LQDQFH'LUHFWRU
0ROO\5DWWLJDQ
,QWHULP
&RPPXQLW\'HYHORSPHQW'LUHFWRU
%UH\DQD%UDQGW3DUNVDQG5HFUHDWLRQ6HUYLFHV'LUHFWRU vi
ATTACHMENT 1

vii
ATTACHMENT 1

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Napa
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
viii
ATTACHMENT 1

&0FF0?_
g0LF
0F
X
F
Fgl0gL[_Ƀ[
XL[g
EF'
E
FgɃ_0_l__0LF˂F?~_0_
_0&0FF0?_gg
E
Fg_
FLg
_gLg-
_0&0FF0?_gg
E
Fg_
[
Zl0[
_lXX?
E
Fg[~0F&L[Eg0LF
_lXX?
E
Fg[~0F&L[Eg0LF
ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
ATTACHMENT 1

LSLCPAS.COM
,1'(3(1'(17$8',7256¶5(3257

7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI1DSD&DOLIRUQLD

5HSRUWRQWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWV

Opinions
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SHDFWLYLWLHV HDFKPDMRUIXQGDQGWKHDJJUHJDWHUHPDLQLQJIXQGLQIRUPDWLRQRIWKH&LW\RI1DSD&DOLIRUQLD WKH³&LW\´
DVRIDQG
IRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH &LW\¶VEDVLFILQDQFLDOVWDWHPHQWVDVOLVWHGLQWKHWDEOHRIFRQWHQWV 
,Q RXU RSLQLRQ WKH ILQDQFLDO VWDWHPHQWV UHIHUUHG WR DERYH SUHVHQW IDLUO\ LQ DOO PDWHULDO UHVSHFWV WKH UHVSHFWLYH ILQDQFLDOSRVLWLRQRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVV W\SHDFWLYLWLHVHDFKPDMRUIXQGDQGWKHDJJUHJDWH UHPDLQLQJIXQGLQIRUPDWLRQRIWKH&LW\DVRI-XQHDQGWKHUHVSHFWLYHFKDQJHVLQILQDQFLDOSRVLWLRQDQG ZKHUHDSSOLFDEOHFDVKIORZVWKHUHRIIRUWKH\HDUWKHQHQGHGLQ DFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\ DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD

Basis for Opinions
:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Auditing Standards  LVVXHG E\ WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV2XUUHVSRQVLELOLWLHV XQGHUWKRVHVWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH $XGLWRU¶V 5HVSRQVLELOLWLHV IRU WKH $XGLW RI WKH )LQDQFLDO 6WDWHPHQWV VHFWLRQ RI RXU UHSRUW :H DUH UHTXLUHG WR EH LQGHSHQGHQW RI WKH &LW\ DQG WR PHHW RXU RWKHU HWKLFDO UHVSRQVLELOLWLHV LQ DFFRUGDQFH ZLWK WKH UHOHYDQW HWKLFDO UHTXLUHPHQWVUHODWLQJWRRXUDXGLW:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWH WRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQV

Responsibilities of Management for the Financial Statements 0DQDJHPHQWLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWK DFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDDQGIRUWKHGHVLJQLPSOHPHQWDWLRQDQG PDLQWHQDQFHRILQWHUQDOFRQWUROUHOHYDQWWRWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHH IURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU 
,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRUHYHQWV FRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRU WZHOYH PRQWKV EH\RQG WKH ILQDQFLDO VWDWHPHQW GDWH LQFOXGLQJ DQ\ FXUUHQWO\ NQRZQ LQIRUPDWLRQ WKDW PD\ UDLVH VXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU

Auditor’s Responsibilities for the Audit of the Financial Statements 2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURP PDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLV VXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHVRXURSLQLRQV 5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXWLVQRWDEVROXWHDVVXUDQFHDQGWKHUHIRUHLVQRWDJXDUDQWHH WKDW DQ DXGLW FRQGXFWHG LQ DFFRUGDQFH ZLWK JHQHUDOO\ DFFHSWHG DXGLWLQJ VWDQGDUGV DQG Government Auditing ATTACHMENT 1


7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI1DSD&DOLIRUQLD

Standards ZLOO DOZD\V GHWHFW D PDWHULDO PLVVWDWHPHQW ZKHQ LW H[LVWV 7KH  ULVN RI QRW GHWHFWLQJ D PDWHULDO PLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDVIUDXGPD\LQYROYHFROOXVLRQIRUJHU\ LQWHQWLRQDORPLVVLRQVPLVUHSUHVHQWDWLRQVRUWKHRYHUULGHRILQWHUQDOFRQWURO0LVVWDWHPHQWVDUHFRQVLGHUHGPDWHULDO LIWKHUHLVDVXEVWDQWLDOOLNHOLKRRGWKDWLQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\ZRXOGLQIOXHQFHWKHMXGJPHQWPDGHE\ DUHDVRQDEOHXVHUEDVHGRQWKHILQDQFLDOVWDWHPHQWV

,Q SHUIRUPLQJ DQ DXGLW LQ DFFRUGDQFH ZLWK JHQHUDOO\ DFFHSWHG DX GLWLQJ VWDQGDUGV DQG Government Auditing StandardsZH


• ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW 
• ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRU HUURU DQG GHVLJQ DQG SHUIRUP DXGLW SURFHGXUHV UHVSRQVLYH WR WK RVH ULVNV 6XFK SURFHGXUHV LQFOXGH H[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDOVWDWHPHQWV 
• 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDX GLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUH DSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[ SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRI WKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG 
• (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGW KHUHDVRQDEOHQHVVRIVLJQLILFDQWDFFRXQWLQJ HVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWV 
• &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYHQWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVH VXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUDUHDVRQDEOHSHULRGRIWLPH 
:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKHSODQQHG VFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUVWKDWZHLGHQWLILHG GXULQJWKHDXGLW

Required Supplementary Information
$FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶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¶VUHVSRQVHVWRRXU LQTXLULHVWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRWKHUNQRZOHGJH ZHREWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDO VWDWHPHQWV :H GR QRW H[SUHVV DQ RSLQLRQ RU SURYLGH DQ\ DVVXUDQFH RQ WKH LQIRUPDWLRQ EHFDXVH WKH OLPLWHG SURFHGXUHVGRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH 
Supplementary Information
2XUDXGLWZDVFRQGXFWHGIRUWKHSXUSRVHRIIRUPLQJRSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVWKDWFROOHFWLYHO\FRPSULVH WKH&LW\¶VEDVLFILQDQFLDOVWDWHPHQWV7KHDFFRPSDQ\LQJFRPELQL QJDQGLQGLYLGXDOIXQGILQDQFLDOVWDWHPHQWVDQG VFKHGXOHV
³VXSSOHPHQWDU\LQIRUPDWLRQ´
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


7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI1DSD&DOLIRUQLD

WKHPVHOYHVDQGRWKHUDGGLWLRQDOSURFHGXUHVLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG 6WDWHVRI$PHULFD,QRXURSLQLRQWKHVXSSOHPHQWDU\LQIRUPDWLRQLVIDLUO\VWDWHGLQDOOPDWHULDOUHVSHFWVLQUHODWLRQ WRWKHEDVLFILQDQFLDOVWDWHPHQWVDVDZKROH

Other Information
0DQDJHPHQWLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQFOXGHGLQWKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQFRPSULVHV WKHLQWURGXFWRU\DQGVWDWLVWLFDOVHFWLRQVEXWGRHVQRWLQFOXGHWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRXUDXGLWRU¶VUHSRUW WKHUHRQ2XURSLQLRQVRQWKHEDVLFILQDQFLDOVWDWHPHQWVGRQRWFRYHUWKHRWKHULQIRUPDWLRQDQGZHGRQRWH[SUHVV DQRSLQLRQRUDQ\IRUPRIDVVXUDQFHWKHUHRQ

,QFRQQHFWLRQZLWKRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWVRXUUHVSRQVLELOLW\LVWRUHDGWKHRWKHULQIRUPDWLRQDQG FRQVLGHUZKHWKHUDPDWHULDOLQFRQVLVWHQF\H[LVWVEHWZHHQWKHRWKHULQIRUPDWLRQDQGWKHEDVLFILQDQFLDOVWDWHPHQWV RUWKHRWKHULQIRUPDWLRQRWKHUZLVHDSSHDUVWREHPDWHULDOO\PLVVWDWHG,IEDVHGRQWKHZRUNSHUIRUPHGZHFRQFOXGH WKDWDQXQFRUUHFWHGPDWHULDOPLVVWDWHPHQWRIWKHRWKHULQIRUPDWLRQH[LVWVZHDUHUHTXLUHGWRGHVFULEHLWLQRXUUHSRUW 
2WKHU5HSRUWLQJ5HTXLUHGE\Government Auditing Standards 
,QDFFRUGDQFHZLWK Government Auditing StandardsZHKDYHDOVRLVVXHGRXUUHSRUWGDWHG-DQXDU\RQ RXUFRQVLGHUDWLRQRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGRQRXUWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQ SURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQW VDQGRWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLV VROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWV RIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJ RURQFRPSOLDQFH7KDWUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWS HUIRUPHGLQDFFRUGDQFHZLWK Government Auditing StandardsLQFRQVLGHULQJWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH 

,UYLQH&DOLIRUQLD
-DQXDU\
3 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
4 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


,1752'8&7,21

7KLVQDUUDWLYHLVSUHVHQWHGWRSURYLGHUHDGHUVRIWKLVAnnual Comprehensive Financial Report ZLWKDQRYHUYLHZDQG DQDO\VLVRIWKHILQDQFLDODFWLYLWLHVRIWKH&LW\RI1DSD WKH³&LW\´
IRUWKHILVFDO\HDUHQGHG-XQH


29(59,(:2)7+(),1$1&,$/67$7(0(176

7KH)LQDQFLDO6HFWLRQRIWKH$QQXDO&RPSUHKHQVLYHILQDQFLDO5HSRUWLQFOXGHVWKHIROORZLQJVHFWLRQV 


 ,QGHSHQGHQW$XGLWRUV¶5HSRUWWRWKH&LW\&RXQFLO


 7KLVLQWURGXFWRU\FRPPHQWDU\ Management’s Discussion and Analysis 
 %DVLF)LQDQFLDO6WDWHPHQWVLQFOXGLQJ


D *RYHUQPHQWZLGHILQDQFLDOVWDWHPHQWV
E )XQGILQDQFLDOVWDWHPHQWV
F 1RWHVWRWKHEDVLFILQDQFLDOVWDWHPHQWV


 6XSSOHPHQWDO,QIRUPDWLRQ

D 1RQPDMRUJRYHUQPHQWDOIXQGV
E ,QWHUQDOVHUYLFHIXQGV
F )LGXFLDU\IXQGV

7KH)LQDQFLDO6WDWHPHQWV

7KH Basic Financial Statements DUH FRPSULVHG RI WKH Government-wide Financial Statements  DQG WKH Fund Financial Statements. 7KHVHWZRVHWVRIILQDQFLDOVWDWHPHQWVSURYLGHWZRGLIIHUHQWSH UVSHFWLYHVRIWKH&LW\¶V ILQDQFLDODFWLYLWLHVDQGILQDQFLDOSRVLWLRQ7KHDFFRPSDQ\LQJNotes to the Basic Financial StatementsDUHDQLQWHJUDO SDUWRIWKHVHILQDQFLDOVWDWHPHQWV

7KH Government-wide Financial Statements SURYLGH D ORQJWHUP YLHZ RI WKH &LW\¶V DFWLYLWLHV DV D ZKROH7KH Statement of Net Position  SURYLGHV LQIRUPDWLRQ DERXW ILQDQFLDO SRVLWLRQ LQFOXGLQJ FDSLWDO DVVHWV DQG ORQJWHUP OLDELOLWLHVRQDIXOODFFUXDOEDVLVVLPLODUWRWKDWXVHGE\FRPPHUFLDOHQWHUSULVHV7KHStatement of ActivitiesSURYLGHV LQIRUPDWLRQDERXWWKH&LW\¶VUHYHQXHVDQGH[SHQVHVDOVRRQWKHIXOODFFUXDOEDVLVZLWKWKHHPSKDVLVRQPHDVXULQJ WKH QHW UHYHQXHV RU H[SHQVHV RI &LW\ SURJUDPV ,QIRUPDWLRQ LV S UHVHQWHG ERWK LQ WRWDO DQG VHSDUDWHO\ IRU JRYHUQPHQWDODFWLYLWLHVZKLFKDUHJHQHUDOO\WD[DQGJUDQWVXSSRUWHGDQGEXVLQHVVW\SHDFWLYLWLHVZKLFKDUHW\SLFDOO\ VXSSRUWHGE\XVHUIHHV

7KH Fund Financial Statements UHSRUW RQ WKH &LW\¶V RSHUDWLRQV LQ PRUH GHWDLO WKDQ WKH JRYHUQ PHQWZLGH VWDWHPHQWV7KH &LW\ OLNH RWKHU VWDWH DQG ORFDO JRYHUQPHQWV XVHV IXQG DFFRXQWLQJ WR HQVXUH DQG GHPRQVWUDWH ILQDQFHUHODWHGOHJDOFRPSOLDQFH$OORIWKHIXQGVRIWKH&LW\FDQEHGLYLGHGLQWRWKUHHFDWHJRULHV  governmental
fundsproprietary fundsDQGfiduciary funds


• Governmental fundsDFFRXQWIRUPRVWRIWKH&LW\¶VEDVLFVHUYLFHVDQGIRFXVSULPDULO\RQVKRUWWHUPDFWLYLWLHVE\ PHDVXULQJFXUUHQWUHYHQXHVDQGH[SHQGLWXUHVDQGH[FOXGLQJFDSLWDODVVHWVDQGORQJWHUPREOLJDWLRQV7KH&LW\ PDLQWDLQVVHYHUDOLQGLYLGXDOJRYHUQPHQWDOIXQGVRUJDQL]HGDFFRUGLQJWRWKHLUW\SH VSHFLDOUHYHQXHDQGFDSLWDO

SURMHFWV
,QIRUPDWLRQLVSUHVHQWHGVHSDUDWHO\LQWKHJRYHUQPHQWDOIXQGVEDODQFHVKHHWDQGLQWKHJRYHUQPHQWDO IXQGVVWDWHPHQWRIUHYHQXHVH[SHQGLWXUHVDQGFKDQJHVLQIXQGEDODQFHVIRUWKH*HQHUDO)XQG'HYHORSPHQW )HHV)XQG+20(3URJUDP)XQG+RXVLQJ)XQGDQG&LW\&DSLWDO3URMHFWVZKLFKDUHPDMRUIXQGV'DWDIURP WKHUHPDLQLQJQRQPDMRUJRYHUQPHQWDOIXQGVDUHFRPELQHGLQWRD VLQJOHDJJUHJDWHGSUHVHQWDWLRQ,QGLYLGXDO IXQG GDWD IRU HDFK RI WKHVH QRQPDMRU JRYHUQPHQWDO IXQGV LV SURYLGHG LQ WKH IRUP RI FRPELQLQJ VWDWHPHQWV EHJLQQLQJRQSDJH
5 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH



• Proprietary funds DUH JHQHUDOO\ XVHG WR DFFRXQW IRU VHUYLFHV IRU ZKLFK WKH &LW\ FKDUJHV FXVWRPHUV ± HLWKHU RXWVLGHFXVWRPHUVRULQWHUQDOGHSDUWPHQWVRUSURJUDPVRIWKH&LW\3URSULHWDU\IXQGVSURYLGHWKHVDPHW\SHRI LQIRUPDWLRQDVVKRZQLQWKHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWVRQO\LQPRUHGHWDLO7KH&LW\PDLQWDLQVWKH IROORZLQJWZRW\SHVRISURSULHWDU\IXQGV


o Enterprise funds DUH XVHG WR UHSRUW WKH VDPH IXQFWLRQV SUHVHQWHG DV EXVLQHVVW\S H DFWLYLWLHV LQ WKH JRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWV7KH&LW\XVHVHQWHUSULVH IXQGVWRDFFRXQWIRUWKHZDWHUXWLOLW\DQG VROLGZDVWHDQGUHF\FOLQJ$OORIWKHSURSULHWDU\IXQGVDUHPDMRUIXQGV 
o Internal service funds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
• Fiduciary funds DUHXVHGWRUHSRUWDVVHWVKHOGLQDWUXVWRUDJHQF\FDSDFLW\IR URWKHUV7KH&LW\FXUUHQWO\KDV RQO\RQHILGXFLDU\IXQGWKH*DVVHU&RPPXQLW\)DFLOLWLHV'LVWUL FW &)'
WRDFFRXQWIRUGHEWUHODWHGDFWLYLWLHV
7KLVIXQGFDQQRWEHXVHGWRVXSSRUWWKH&LW\¶VSURJUDPVDQGWKHUHIRUHLVQRWUHIOHFWHGLQWKHJRYHUQPHQWZLGH ILQDQFLDOVWDWHPHQWV

),1$1&,$/+,*+/,*+76

7KH&LW\SURYLGHVVHUYLFHVWRWKHFLWL]HQVRI1DSDE\OHYHUDJLQJSURSHUW\VDOHVDQGRWKHUWD[HVZLWKXVHUIHHVDQG IHGHUDOVWDWHDQGORFDOJUDQWVWRILQDQFHLWVRSHUDWLRQV7KH&LW\¶VSURSHUW\WD[UHYHQXHLQFUHDVHGLQILVFDODV WKHKRXVLQJPDUNHWFRQWLQXHGWRVWUHQJWKHQ

7KHJRYHUQPHQWDODFWLYLWLHVWRWDODVVHWVLQFUHDVHGE\PLOOLRQ WRPLOOLRQ
DQGEXVLQHVVW\SHDFWLYLWLHV
WRWDO DVVHWV LQFUHDVHG E\  PLOOLRQ
WR 
 PLOOLRQ
7KH LQFUHDVH LQ WKH JRYHUQPHQWDO DFWLYLW\ DVVHWV ZDV SULPDULO\GXHWRDQLQFUHDVHRIPLOOLRQLQUHFHLYDEOHVDQGRWKHUDVVHWV7KHLQFUHDVHLQGHIHUUHGRXWIORZVLQWKH JRYHUQPHQWDO DFWLYLWLHV DQG EXVLQHVVW\SH DFWLYLWLHV LV WKH UHVXOW RI WKH -XQH   PHDVXUHPHQWV RI WKH QHWSHQVLRQOLDELOLW\DQGWKHQHWRWKHUSRVWHPSOR\PHQWEHQHILWVOLDELOLW\ 
2YHUDOOWKH&LW\WRWDOOLDELOLWLHVLQFUHDVHGE\PLOOLRQ WRPLOOLRQ
7KLVLVSULPDULO\GXHWRDQLQFUHDVHRI
PLOOLRQLQFXUUHQWDQGRWKHUOLDELOLWLHVDQGPLOOLRQLQORQJWHUPOLDELOLWLHV'HIHUUHGLQIORZVLQFUHDVHGE\ PLOOLRQ
WRPLOOLRQ
SULPDULO\GXHWRDQLQFUHDVHLQ23(%UHODWHGLQIORZVRIUHVRXUFHV 
2YHUDOOWKH&LW\¶VQHWSRVLWLRQLQFUHDVHGE\PLOOLRQ WRPLOOLRQ



6 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


),1$1&,$/$1$/<6,62)7+(&,7<$6$:+2/(

7KHWRWDOQHWSRVLWLRQRIWKH&LW\DVRI-XQHDQG DUHVXPPDUL]HGLQ7 DEOHEHORZDQGDUHIROORZHG E\DGLVFXVVLRQRIWKHEDODQFHVE\FDWHJRU\


Cash and other assets – 7KH&LW\¶VFDVKDQGLQYHVWPHQWSRUWIROLRLQFUHDVHGE\ WRPLOOLRQ
SULPDU\
GXH WR DQ LQFUHDVH LQ SURSHUW\ WD[HV DQG XVH RI PRQH\ DQG SURSHUW\ 7KH &LW\¶V UHFHLYDEOHV DQG RWKHU DVVHWV LQFUHDVHGE\PLOOLRQ
WR
PLOOLRQ

Capital assets –  7KH &LW\¶V FDSLWDO DVVHWV LQFUHDVHG E\  PLOOLRQ GXULQJ WKH ILVFDO \HDU WR  PLOOLRQ

$GGLWLRQDOLQIRUPDWLRQRQFDSLWDODVVHWVPD\EHIRXQGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWV Deferred outflow of resources –7KH&LW\¶VGHIHUUHGRXWIORZRIUHVRXUFHV PLOOLRQLQJRYHUQPHQWDODFWLYLWLHV
DQGPLOOLRQLQEXVLQHVVW\SHDFWLYLWLHV
UHODWHWRWKHQHWSHQVLRQOLDELOLW\DQGWKH1HW23(%OLDELOLW\DQGWKH LPSDFWRIUHIXQGLQJWKH:DWHU5HYHQXHERQGV
PLOOLRQ
LQEXVLQHVVW\SHDFWLYLWLHV

Current and other liabilities –7KH&LW\¶VFXUUHQWDQGRWKHUOLDELOLWLHVLQFUHDVHGE\PLOOLRQ WRPLOOLRQ

7KLVFKDQJHLVSULPDULO\GXHWRDUHIXQGRIPLOOLRQUHODWLQJWRWKH1DSD3LSH'HYHORSPHQWSURMHFW Long-term liabilities – ,QFUHDVH LQ WKH SHQVLRQ OLDELOLW\ FRQWULEXWHG WR DQ RYHUDOO LQFUHDVH RI PLOOLRQ LQ WKH ORQJWHUPOLDELOLWLHVWR
PLOOLRQ7KLVLQFOXGHVWKHQHWSHQVLRQOLDELOLW\RIPLOOLRQWKH1HW23(%OLDELOLW\ RIPLOOLRQDQGORDQVQRWHVOHDVHV6%,7$FODLPVDQGFRPSHQVDWHGDEVHQFHVRIPLOOLRQ 
Deferred inflow of resources – 7KH&LW\¶VGHIHUUHGLQIORZRIUHVRXUFHV PLOOLRQLQJRYHUQPHQWDODFWLYLWLHVDQG
 PLOOLRQ LQ EXVLQHVVW\SH DFWLYLWLHV
 LV UHODWHG WR FKDQJHV  LQ WKH QHW SHQVLRQ OLDELOLW\ DQG QHW RWKHU SRVWHPSOR\PHQWEHQHILWVOLDELOLW\DVUHTXLUHGE\*$6%
VDQGDQGWKHLPSOHPHQWDWLRQRIWKH*$6%OHDVH REOLJDWLRQUHSRUWLQJUHTXLUHPHQW
PLOOLRQ

-XQH -XQH -XQH -XQH -XQH -XQH $VVHWV

&DVKDQGLQY HVWPHQWV  

    

5HFHLY DEOHVDQGRWKHUDVVHWV 
  
 
 
&DSLWDODVVHWV 
    
 
 
7RWDODVVHWV  
 
 

 


'HIHUUHGRXWIORZVRIUHVRXUFHV

'HIHUUHGRXWIORZV       
7RWDOGHIHUUHGRXWIORZVRIUHVRXUFHV       
/LDELOLWLHV

&XUUHQWDQGRWKHUOLDELOLWLHV 
 
     
 /RQJWHUPOLDELOLWLHV 
 
   
 


7RWDOOLDELOLWLHV 

  
 
 

 

'HIHUUHGLQIORZVRIUHVRXUFHV

'HIHUUHGLQIORZV 

  
  
 

7RWDOGHIHUUHGLQIORZVRIUHVRXUFHV 

  
  
 

1HWSRVLWLRQ

1HWLQY HVWPHQWLQFDSLWDODVVHWV 


 
  
 
  

5HVWULFWHG       8QUHVWULFWHG

GHILFLW

      7RWDOQHWSRVLWLRQ       

6XPPDU\RI1HW3RV LWLRQ
7DEOH
*RYHUQPHQWDO$FWLYLWLHV 7RWDO %XV LQHV V W\SH$FWLYLWLHV 7 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


Net position – 7KHJRYHUQPHQWDODFWLYLWLHVQHWSRVLWLRQEDODQFHRIPLOO LRQLQFOXGHV 
PLOOLRQRIQHW
LQYHVWPHQWLQFDSLWDODVVHWVPLOOLRQUHVWULFWHGIXQGVDYDLODEOHIRUFDSLWDOSURMHFWVDQGRWKHUSURJUDPVDQGD UHPDLQLQJEDODQFHRIPLOOLRQDYDLODEOHIRUIXWXUHQHHGVL QFOXGLQJFDSLWDOSURMHFWV7KH&LW\¶VEXVLQHVVW\SH DFWLYLWLHVUHSRUWHGDQHWSRVLWLRQEDODQFHRI
PLOOLRQZKLFKLQFOXGHVPLOOLRQRIQHWLQYHVWPHQWLQFDSLWDO DVVHWVDQGPLOOLRQDYDLODEOHIRUIXWXUHQHHGVLQFOXGLQJFDSLWDOSURMHFWV 
*RYHUQPHQWZLGH6WDWHPHQWRI$FWLYLWLHV

7KHFKDQJHVLQWKH&LW\¶VJRYHUQPHQWZLGHQHWSRVLWLRQIRUWKH \HDUHQGHG-XQHUHVXOWIURPLWVDFWLYLWLHV GXULQJWKHILVFDO\HDU7KH&LW\¶VJRYHUQPHQWZLGHDFWLYLWLHVIRUILVFDO\HDUVHQGHG-XQHDQGDUH VXPPDUL]HGLQ7 DEOHEHORZ



7KHJRYHUQPHQWDODFWLYLWLHVUHYHQXHVLQILVFDO\HDULQF UHDVHGE\PLOOLRQ WR

PLOOLRQ
7KLVLV
PDLQO\GXHWRDQLQFUHDVHRI
PLOOLRQLQRSHUDWLQJJUDQWVDQGFRQWULEXWLRQV

7KH &LW\¶V WRWDO H[SHQVHV LQFUHDVHG E\  PLOOLRQ ZLWK JRYH UQPHQWDO DFWLYLWLHV H[SHQVHV LQFUHDVLQJ E\ PLOOLRQ7KLVLVPDLQO\GXHWRDQLQFUHDVHRIPLOOLRQLQJHQHUDOJRYHUQPHQWH[SHQVHV -XQH -XQH -XQH -XQH -XQH  -XQH 5HYHQXHV

3URJUDPUHY HQXHV

&KDUJHVIRUVHUY LFHV 
            2SHUDWLQJJUDQWVDQGFRQWULEXWLRQ         
  
&DSLWDOJUDQWVDQGFRQWULEXWLRQV      
 
   
  
*HQHUDOUHY HQXHV

3URSHUW\WD[HV   
          
)UDQFKLVHWD[HV             6DOHVWD[HV 
  
         
 
7UDQVLHQWRFFXSDQF\WD[HV 

        
  
8VHRIPRQH\DQGSURSHUW\          


  
2WKHU      
 
  
 
 
7RWDOUHYHQXHV 
  

 


 
  

  
([SHQVHV

*RY HUQPHQWDODFWLY LWLHV

*HQHUDOJRYHUQPHQW 
           
3XEOLFVDIHW\ 

       
3XEOLFZRUNV  

     


3DUNDQGUHFUHDWLRQ 

     

&RPPXQLW\GHY HORSPHQW 

 
    

 

,QWHUHVWRQORQJWHUPGHEW       %XVLQHVVW\SHDFWLY LWLHV

:DWHU8WLOLW\      
 
 

6ROLG:DVWH8WLOLW\        7RWDOH[SHQVHV       

([FHVV
GHILFLHQF\
EHIRUHWUDQVIHUV 
      

7UDQVIHUV 
 




   &KDQJHVLQQHWSRVLWLRQ  
  
 
 

1HWSRV LWLRQEHJLQQLQJ  


   
 
 

1HWSRV LWLRQHQGLQJ       

7DEOH
6XPPDU\RI$FWLYLWLHV
*RYHUQPHQWDO$FWLYLWLHV %XV LQHV V W\SH$FWLYLWLHV 7RWDO 8 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


),1$1&,$/$1$/<6,62)7+(&,7<¶6)81'6

,Q DGGLWLRQ WR WKH DFFUXDOEDVLV JRYHUQPHQWZLGH ILQDQFLDO VWDWHPHQWV GHVFULEHG DERYH WKH &LW\ DOVR PDLQWDLQV ILQDQFLDO UHFRUGV DW WKH IXQG OHYHO IRU EXGJHWDU\ FRQWURO ,QGLYLGXDO IXQGV DUH JHQHUDOO\ HVWDEOLVKHG WR WUDFN WKH UHVRXUFHVDQGRSHUDWLQJUHVXOWVIRUWKHJHQHUDOIXQGDQGVSHFLILFUHVWULFWHGSURJUDPV7KHUHVXOWVIRUJRYHUQPHQWDO IXQGVDVVKRZQEHORZGLIIHUIURPWKHUHVXOWVUHSRUWHGDERYHLQ WKHJRYHUQPHQWZLGHVWDWHPHQWVVLQFHWKHIRFXV KHUHLVRQFXUUHQWDYDLODEOHUHVRXUFHV7KHIROORZLQJDUHILQDQFLDOKLJKOLJKWVRIWKH&LW\¶VPRVWVLJQLILFDQWIXQGV 

*RYHUQPHQWDO)XQGV

General Fund – 7KH&LW\¶V*HQHUDO)XQGUHYHQXHWRWDOHGPLOOLRQZKLFKU HSUHVHQWHG SHUFHQWRIWKH

PLOOLRQDGRSWHGEXGJHWHG7KLVLVDQLQFUHDVHRI PLOOLRQ
SHUFHQW
IURPWKHSUHYLRXVILVFDO\HDU7KLV
LQFUHDVHLVGXHPDLQO\WRDQLQFUHDVHLQFKDUJHVIRUVHUYLFHVDQGLQWHUJRYHUQPHQWDOUHYHQXH 

*HQHUDO )XQG H[SHQGLWXUHV WRWDOHG  PLOOLRQ ZKLFK UHSUHVHQWHG  SHUFHQW RI WKH  PLOOLRQ DGRSWHG
EXGJHW)LVFDO\HDUH[SHQGLWXUHVLQFUHDVHGE\PLOOLRQ SHUFHQW
RYHUWKHSULRU\HDU

7KHVLJQLILFDQWYDULDQFHVZLWKEXGJHWLQWKH*HQHUDO)XQGDUHDVIROORZV 

• ,QWHUJRYHUQPHQWDOUHYHQXHVHQGHGWKH\HDU
PLOOLRQEHORZW KHEXGJHW
9 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


• &KDUJHVDQGVHUYLFHVHQGHGWKH\HDUDWPLOOLRQRYHUWKHE XGJHW 
• ,QYHVWPHQWLQFRPHZDVEXGJHWHGDWPLOOLRQEXWGXHWRJDLQ RQLQYHVWPHQWWKHYDULDQFHLVVLJQLILFDQWO\KLJK 
• 'HSDUWPHQWDOH[SHQGLWXUHYDULDQFHVDUHDVIROORZV


o *HQHUDO 6HUYLFHV XQGHU EXGJHW E\  PLOOLRQ GXH WR XQVSHQW SURIHVVLRQDO VHUYLFHV OHJDO VHUYLFH DQG YDFDQF\VDYLQJV

o 3XEOLF6DIHW\XQGHUEXGJHWE\PLOOLRQGXHWRYDFDQF\VDYL QJVDQGXQVSHQWSURIHVVLRQDOVHUYLFHV 
o &RPPXQLW\'HYHORSPHQWXQGHUEXGJHWE\
PLOOLRQGXHWRRQJRLQJDFWLYLWLHVKDYHQRWEHHQFRPSOHWHG LQWKHFXUUHQWILVFDO\HDUEXWZLOOFRQWLQXHLQWRIXWXUHILVFDO\HDUV 
o &DSLWDO2XWOD\DQG'HEW6HUYLFHVZHUHXQGHUEXGJHWE\PLO OLRQGXHWRWKHUHFRUGLQJRI*$6%DQG

DFWLYLW\
Development Fees Fund ± 7KHVRXUFHVRIUHYHQXHIRUWKLVIXQGDUHWKHYDULRXVGHYHORSPHQWLPSDFWIHHVFROOHFWHG IURPGHYHORSHUVZKLFKDUHXVHGIRUWKHLQVWDOODWLRQRUH[SDQVLRQRIUHODWHGLQIUDVWUXFWXUHDQGDIIRUGDEOHKRXVLQJ )LVFDO\HDUUHYHQXHVZHUHPLOOLRQDQLQFUHDVHRI PLOOLRQIURPWKHSULRU\HDU7KLVLVPDLQO\GXH WREXLOGLQJSHUPLWVPHWHUIHHVDQGRWKHUFKDUJHVIRUVHUYLFHV HOME Fund±7KLVIXQGDFFRXQWVIRU)HGHUDOJUDQWVUHFHLYHGXQGHUWKH+20(,QYHVWPHQW3DUWQHUVKLS3URJUDP WKDWLVDGPLQLVWHUHGE\WKH6WDWHRI&DOLIRUQLDDQGSURJUDPLQFRPHUHFHLYHGIURPWKHUHSD\PHQWRISUHYLRXVORDQV 7KHVHIXQGVDUHXVHGWRSURYLGHGRZQSD\PHQWDVVLVWDQFHWRORZLQFRPHILUVWWLPHKRPHEX\HUV7KHWRWDOUHYHQXH IRUILVFDO\HDUWRWDOHGPLOOLRQFRPSDUHGWRP LOOLRQLQILVFDO\HDU7KHWRWDOH[SHQGLWXUHV IRUWKHILVFDO\HDUZHUHPLOOLRQZKLFKLVDGHFUHDVHRIPLOOLRQRYHUWKHODVWILVFDO\HDU 
Housing Fund – 7KH +RXVLQJ $XWKRULW\ DGPLQLVWHUV )HGHUDO IXQGV LQFOXGLQJ 6HFWL RQ  +RXVLQJ 9RXFKHUV 0DLQVWUHDP 9RXFKHUV (PHUJHQF\ +RXVLQJ 9RXFKHUV DQG &RQWLQXXP RI &DUH IXQGV ZLWKLQ WKH &LW\ RI 1DSD 5HYHQXHVIRUILVFDO\HDUWRWDOHGPLOOLRQZKLFKZ DVDQLQFUHDVHIURPWKHPLOOLRQUHFHLYHGLQ ILVFDO\HDU7KHWRWDOH[SHQGLWXUHVIRUILVFDO\HDU ZHUHPLOOLRQDQLQFUHDVHRIPLOOLRQ RYHUWKHSULRUILVFDO\HDU

City Capital Projects Fund±7KLVIXQGDFFRXQWVIRUWKH&LW\ VFXUUHQWFRQVWUXFWLRQSURMHFWVLQFOXGLQJVWUHHWVSDUN DQGUHFUHDWLRQIDFLOLWLHVDQGRWKHUPDMRU&LW\SURMHFWV,QWRWDO 
PLOOLRQLQFDSLWDOSURMHFWFRVWVZHUHH[SHQGHG
GXULQJILVFDO\HDU,QDGGLWLRQWRWKHUHYHQXHVUHFHLYHG FDSLWDOJUDQWV
WUDQVIHUVRI
PLOOLRQIURPWKH
YDULRXVVSHFLDOUHYHQXHIXQGVDQGWKH*HQHUDO)XQGSURYLGHGIXQGLQJIRUWKH&LW\¶VFDSLWDODFWLYLW\$OOUHVRXUFHVLQ WKLVIXQGDUHUHVWULFWHGRUFRPPLWWHGWRVSHFLILFFDSLWDOLPSURYHPHQWSURJUDPV (QWHUSULVH)XQGV

Water Utility Fund – 7KH:DWHU)XQGLVDIXOO\VHOIVXSSRUWHGHQWHUSULVHSURYLGLQJ ZDWHUVHUYLFHWRWKH&LW\DQG DGMDFHQW DUHDV &KDUJHV IRU ZDWHU DQG FRQQHFWLRQ IHHV KDYH FRQVLVWHQWO\ EHHQ VHW DSSURSULDWHO\ WR FRYHU ERWK RSHUDWLQJDQGSODQQHGPDLQWHQDQFHUHSODFHPHQWDQGH[SDQVLRQFRVWV7KHIXQGLVVXHGERQGVLQWRH[SDQG WKH-DPLHVRQ&DQ\RQ7UHDWPHQW)DFLOLW\1HWSRVLWLRQ

XQUHVWULFWHG
LQFOXGHVUHVHUYHVIRUUDWHVWDELOL]DWLRQUHVHUYH

 PLOOLRQ
 RSHUDWLQJ UHVHUYH
 PLOOLRQ
 HPHUJHQF\ UHVHUYH
 PLOOLRQ
 DQG D ZDWHU VXSSO\ UHVHUYH

PLOOLRQ
)RUILVFDO\HDUUHYHQXHWRWDOHGPLOOLRQFRPSDUHGWRPLOOLRQLQH[SHQVHV 
Solid Waste and Recycling Fund –7KH6ROLG:DVWHDQG5HF\FOLQJIXQGLVDOVRDIXOO\VHOIVXSSRU WHGHQWHUSULVH ZKLFKSURYLGHVIRUORFDOVROLGZDVWHRSHUDWLRQVDQGRSHUDWLRQRIWKHPDWHULDOVGLYHUVLRQIDFLOLW\7KHIXQGLVVXHG ERQGV LQ  WR IXQG LPSURYHPHQWV WR WKH FRYHUHG FRPSRVW IDFLOLW\ )RU ILVFDO \HDU  UHYHQXH WRWDOHG PLOOLRQFRPSDUHGWRPLOOLRQLQH[SHQVHV
10 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH




7KHSLHFKDUWEHORZVKRZV(QWHUSULVH)XQGUHYHQXHE\VRXUFHDVDSHUFHQWDJHRIWRWDOUHYHQXH 

&KDUJHVIRUVHUYLFHV


0LVFHOODQHRXV

,QYHVWPHQWLQFRPH

ORVV


,QWHUJRYHUQPHQWDO

&DSDFLW\IHHVDQG
FDSLWDOJUDQWV

5HYHQXHE\6RXUFH
(QWHUSULVH)XQG
&KDUJHVIRUVHUYLFHV 0LVFHOODQHRXV
,QYHVWPHQWLQFRPH
ORVV
,QWHUJRYHUQPHQWDO
&DSDFLW\IHHVDQGFDSLWDOJUDQWV
11 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


&$3,7$/$66(76

$VRI-XQHWKH&LW\KDGLQYHVWHGPLOOLRQLQFD SLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDQG DPRUWL]DWLRQ7KLVUHSUHVHQWVDPLOOLRQLQFUHDVHIURPWKHSULRUILVFDO\HDU%XVLQHVVW\SHDFWLYLWLHVFDSLWDODVVHWV GHFUHDVHGE\PLOOLRQLQILVFDO\HDU$VXPPDU\RI WKH&LW\¶VFDSLWDODVVHWVQHWRIGHSUHFLDWLRQDQG DPRUWL]DWLRQDW-XQHDQGLVSUHVHQWHGLQ7 DEOH $GGLWLRQDOLQIRUPDWLRQRQ&DSLWDO$VVHWVFDQEH IRXQGLQ1RWH



'(%7$'0,1,675$7,21

7KH &LW\ XVHV D YDULHW\ RI LQGHEWHGQHVV WR ILQDQFH YDULRXV FDSL WDO DFTXLVLWLRQV DQG LPSURYHPHQWV 2Q-XQHWKH&LW\¶VORQJWHUPGHEWRXWVWDQGLQJZDVPLOOLRQ7KLVUHSUHVHQWVDPLOOLRQGHFUHDVH IURPWKHSULRUILVFDO\HDU

7KHIROORZLQJWDEOHSURYLGHVDVFKHGXOHRIWKH&LW\¶VORQJWHUPGHEWREOLJDWLRQVRQ-XQHDQG 


$GGLWLRQDOLQIRUPDWLRQRQ/RQJ7 HUP'HEWFDQEHIRXQGLQ1RWH 
(&2120,&287/22.

7KH&LW\DQQXDOO\SUHSDUHVDPXOWL\HDUILQDQFLDOIRUHFDVWZKL FKIRFXVHVRQWKHORQJWHUPILQDQFLDOYLDELOLW\RIWKH &LW\¶V*HQHUDO)XQGDQGSURYLGHVGHFLVLRQPDNHUVZLWKLQIRUPDWLRQWREHWWHUXQGHUVWDQGWKHORQJWHUPILVFDOLPSDFW RISROLF\GHFLVLRQV%XGJHWGHYHORSPHQWDGKHUHVWRDVHULHVRI SROLFLHVDGRSWHGE\WKH&LW\&RXQFLOZKLFKJXLGH ORQJWHUP ILVFDO SODQQLQJ7KH &LW\ KDV D VWURQJ GLYHUVH UHYHQXH EDVH RI SURSHUW\ WD[HV VDOHV WD[HV WUDQVLHQW RFFXSDQF\WD[HVDVZHOODVRWKHUORFDOVWDWHDQGIHGHUDOUHYH QXHVRXUFHV7 RXULVPLQWKH1DSD9DOOH\LVVWURQJ ZKLFKIXUWKHUVWUHQJWKHQVWKH&LW\¶VHFRQRPLFEDVH$GGLWLRQDOGHWDLOVRQWKHHFRQRP\RIWKH&LW\DUHGLVFXVVHGLQ WKHDFFRPSDQ\LQJ7UDQVPLWWDO/HWWHU
-XQH -XQH -XQH -XQH -XQH  -XQH &DSLWDODVVHWVQRWVXEMHFW
WRGHSUHFLDWLRQDPRUWL]DWLRQ

/DQG 
  
  

   
  
 
&RQVWUXFWLRQLQSURJUHVV  
  

 

     
1HW'HSUHFLDEOHFDSLWDODVVHWV

,QIUDVWUXFWXUH        

  
  
 
%XLOGLQJDQGLPSURYHPHQWV       
    
 
,PSURYHPHQWVRWKHUWKDQEXLOGLQJV           0DFKLQHU\DQGHTXLSPHQW 
   
        2WKHUFDSLWDODVVHWV           
 
1HW/HDVHDVVHWV            1HW6XEVFULSWLRQDVVHWV   
       
  
7RWDOFDSLWDODVVHWVQHW 
     

  
   
7DEOH
6XPPDU\RI$FWLYLWLHV
*RYHUQPHQWDO$FWLYLWLHV %XV LQHV V W\SH$FWLYLWLHV 7RWDO -XQH -XQH -XQH -XQH -XQH  -XQH 6ROLGZDVWHUHYHQXHERQGV     

 
 

 
:DWHUUHYHQXHERQGV            1RWHVSD\DEOH            /HDVHOLDELOLW\ 

 
  
       
6XEVFULSWLRQOLDELOLW\        
 
  
 
7RWDOORQJWHUPGHEW
  

  



 
     
*RYHUQPHQWDO$FWLYLWLHV %XV LQHV V W\SH$FWLYLWLHV 7RWDO 7DEOH
/RQJ7HUP'HEW
12 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV
8QDXGLWHG

)RUWKH<HDU(QGHG-XQH


&217$&7,1*7+(&,7<

7KLVILQDQFLDOUHSRUWLVGHVLJQHGWRSURYLGHDJHQHUDORYHUYLHZRIWKH&LW\¶VILQDQFHVIRUDOORILWVFLWL]HQVWD[SD\HUV LQYHVWRUV DQG FUHGLWRUV 4XHVWLRQV FRQFHUQLQJ DQ\ LQIRUPDWLRQSURYLGHG LQ WKLV UHSRUW RU UHTXHVWV IRU DGGLWLRQDO LQIRUPDWLRQVKRXOGEHDGGUHVVHGWRWKH)LQDQFH'HSDUWPHQWDW  6FKRRO6WUHHW1DSD&DOLIRUQLD7KHPDLOLQJ
DGGUHVVLV3RVW2IILFH%R[1DSD&DOLIRUQLD



13 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
14 ATTACHMENT 1



%$6,&),1$1&,$/67$7(0(176
15 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
16 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 226,077,043$ 98,334,095 $ 324,411,138$ Receivables (net of uncollectibles):

Accounts 29,000,257 11,328,620 40,328,877
Accrued interest 385,002 156,726 541,728 Due from other governments 4,818,799 4,981,077 9,799,876 Service concession arrangement 380,294 - 380,294 Notes and loans 34,286,320 90,625 34,376,945 Leases 273,562 1,228,978 1,502,540
Internal balances 5,407,118 (5,407,118) - Restricted assets:

Cash and investments 8,309,664 - 8,309,664 Cash with fiscal agent - 510 510 Inventories 1,230 - 1,230 Prepaid costs 4,616,001 82,661 4,698,662 Capital assets (not being depreciated) 72,251,527 17,193,608 89,445,135 Capital assets (net of accumulated depreciation/amortization) 297,449,991 93,894,010 391,344,001 Total assets 683,256,808 221,883,792 905,140,600

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding - 611,926 611,926 Pension-related 52,490,737 5,324,059 57,814,796 OPEB-related 3,191,704 839,440 4,031,144 Total deferred outflows of resources 55,682,441 6,775,425 62,457,866

LIABILITIES
Accounts payable and accrued liabilities 9,880,944 9,308,822 19,189,766 Accrued interest 163,536 271,962 435,498 Deposits payable 2,161,690 2,290,229 4,451,919 Unearned revenue 20,202,565 3,130 20,205,695 Due within one year: loans, notes, leases, SBITA,
claims, and compensated absences 7,079,428 3,356,331 10,435,759 Noncurrent liabilities:

Due in more than one year:

Net pension liability 206,960,467 23,672,799 230,633,266 Net OPEB liability 1,157,612 304,460 1,462,072 Loans, notes, leases, SBITA, claims, and
compensated absences 22,041,487 38,408,457 60,449,944 Total liabilities 269,647,729 77,616,190 347,263,919

DEFERRED INFLOWS OF RESOURCES
Pension-related 37,224 171,673 208,897 OPEB-related 3,020,187 794,331 3,814,518 Lease-related 2,713,394 1,132,711 3,846,105 Service concession-related 380,294 - 380,294 Total deferred inflows of resources 6,151,099 2,098,715 8,249,814

NET POSITION
Net investment in capital assets 359,879,963 70,800,085 430,680,048 Restricted:

Capital projects 40,315,180 - 40,315,180 Public safety 706,695 - 706,695 Housing 25,467,306 - 25,467,306 Community and economic development 1,447,656 - 1,447,656 Debt service - 510 510 Other postemployment benefits 8,309,664 - 8,309,664 Unrestricted 27,013,957 78,143,717 105,157,674 Total net position 463,140,421$ 148,944,312 $ 612,084,733 $ June 30, 2024
Primary Government
See Notes to Financial Statements.
17 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government 32,532,490$ 7,357,078$ 1,829,659$ -$ Public safety 65,895,817 7,500,327 - - Community development 34,846,996 8,564,929 31,298,603 - Parks and recreation 11,210,661 1,667,675 97,318 - Public works 32,374,115 4,733,694 - 15,725,652 Interest on long-term debt 227,324 - - - Total governmental activities 177,087,402 29,823,703 33,225,580 15,725,652 Business-type activities:

Water Utility 38,639,478 38,531,037 236,819 2,872,559 Solid Waste and Recycling 43,517,633 43,102,773 287,412 - Total business-type activities 82,157,111 81,633,810 524,231 2,872,559 Total primary government 259,244,513$ 111,457,513$ 33,749,811$ 18,598,211$ General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
See Notes to Financial Statements.
18 ATTACHMENT 1

Governmental Business-Type
Activities Activities Total
(23,345,753)$ - $ (23,345,753)$
(58,395,490) - (58,395,490)
5,016,536 - 5,016,536
(9,445,668) - (9,445,668)
(11,914,769) - (11,914,769)
(227,324) - (227,324)
(98,312,467) - (98,312,467)
- 3,000,937 3,000,937
- (127,448) (127,448)
- 2,873,489 2,873,489
(98,312,467) 2,873,489 (95,438,978)
50,440,872 - 50,440,872
22,658,898 - 22,658,898
31,905,493 - 31,905,493
2,226,860 - 2,226,860
10,367,023 4,332,925 14,699,948
500,552 546,141 1,046,693
5,269,310 (5,269,310) -
123,369,008 (390,244) 122,978,764
25,056,541 2,483,245 27,539,786
438,083,880 146,461,067 584,544,947
463,140,421$ 148,944,312 $ 612,084,733 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
19 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
20 ATTACHMENT 1



)81'),1$1&,$/67$7(0(176

,QWKH)XQG)LQDQFLDO6WDWHPHQWVRQO\LQGLYLGXDOPDMRUIXQGVDU HSUHVHQWHGZKLOHQRQPDMRUIXQGVDUHFRPELQHG LQ D VLQJOH FROXPQ 0DMRU IXQGV DUH JHQHUDOO\ DV KDYLQJ VLJQLILFDQW DFWLYLWLHV RU EDODQFHV LQ WKH FXUUHQW \HDU 7KH IXQGV GHVFULEHG EHORZZHUHGHWHUPLQHGWR EH0DMRU )XQGVE\WKH&LW\,QGLYLGXDOQRQPDMRUIXQGVPD\EH IRXQGLQWKH 2WKHU6XSSOHPHQWDU\,QIRUPDWLRQVHFWLRQ 
*HQHUDO)XQG

7KH*HQHUDO)XQGLVWKHJHQHUDORSHUDWLQJIXQGRIWKH&LW\,W LVXVHGWRDFFRXQWIRUDOOILQDQFLDOUHVRXUFHVH[FHSW WKRVH WKDWDUHUHTXLUHGWREHDFFRXQWHGIRULQDQRWKHUIXQG7KH*HQHUDO)XQGLVDOZD\VDPDMRUIXQG 
'HYHORSPHQW)HHV)XQG

7KH 'HYHORSPHQW )HHV 6SHFLDO 5HYHQXH )XQG DFFRXQWV IRU GHYHORSP HQW IHHV OHYLHG E\ WKH &LW\ RQ QHZ FRQVWUXFWLRQ 6WDWHODZ DQG&LW\ RUGLQDQFHUHVWULFWVWKHVHUHYH QXHVIRUXVHLQFRQVWUXFWLRQPDMRUPDLQWHQDQFH DQGGHEWVHUYLFH IRUSDUNVWUHHWGUDLQDJHDQGSXEOLFVDIHW\IDFLOLWLHV 
+20(3URJUDP)XQG

7KH&LW\ KDVEHHQDZDUGHGJUDQWVXQGHUWKH6WDWHRI&DOLIRUQLD)HGHUDO+RPH ,QYHVWPHQWV 3DUWQHUVKLS3URJUDP

+20(
 IRU DGPLQLVWUDWLRQ RI WKH IROORZLQJ DFWLYLWLHV
 RZQHUVKLS UHKDELOLWDWLRQ UHQWDO UHKDELOLWDWLRQ DXJPHQWLQJ WKH &RPPXQLW\ 'HYHORSPHQW %ORFN *UDQW 5HKDELOLWDWLRQ 3URJUDP D VLOHQW VHFRQG GRZQ SD\PHQW DVVLVWDQFH

SURJUDP
DQGD UHQWDODVVLVWDQFHSURJUDP

+RXVLQJ)XQG

7KH +RXVLQJ )XQG DFFRXQWV IRU DFWLYLWLHV RI WKH +RXVLQJ $XWKRULW\ ZKLFK SURYLGHVDQGDGPLQLVWHUV DIIRUGDEOH KRXVLQJSURJUDPVDQGVHUYLFHVWRTXDOLILHGUHVLGHQWV7KH+RXVL QJ$XWKRULW\DGPLQLVWHUV)HGHUDOIXQGVLQFOXGLQJ 6HFWLRQ  +RXVLQJ 9RXFKHUV FRXQW\ZLGH
 0DLQVWUHDP 9RXFKHUV FRXQW\ZLGH
 &RQWLQXXP RI &DUH )XQGV
 WKH
/RFDO +RXVLQJ)XQG
WKH2SHUDWLQJ5HVHUYH)XQGDQGWKH0DQDJHPHQWRI+RXVLQJ$XWKRULW\RZQHGSURSHUWLHV 
&LW\&DSLWDO3URMHFWV)XQG

7KH &LW\&DSLWDO 3URMHFWV )XQG DFFRXQWV IRU WKH &LW\¶V FXUUHQWFRQVWUXFWLRQ SURMHFWV LQFOXGLQJ VWUHHWV SDUNDQG UHFUHDWLRQIDFLOLWLHVDQGRWKHUPDMRU&LW\SURMHFWV7KHSULPD U\VRXUFHVRIIXQGVLQFOXGH&LW\OHYLHGGHYHORSPHQW IHHV WKHVWDWHJDVWD[0HDVXUH7DQGIHGHUDODQGVWDWHJUDQWV 
21 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
General
ASSETS
Cash and investments 28,996,414$ 30,119,113 $ 849,617 $ 8,333,475$ Receivables (net of uncollectibles):

Accounts 22,815,362 570,315 - 10,271 Interest 201,977 51,428 1,293 8,809 Federal, state and other governments 2,754,777 - 25,000 140,770 Loans 308,666 8,808,944 8,721,902 10,266,573 Lease 273,562 - - - Due from other funds 11,129,498 - - - Inventories 1,230 - - - Prepaid items 1,283,694 372 592 23,284 Advances to other funds 2,340,797 183,600 - - Total assets 70,105,977$ 39,733,772$ 9,598,404$ 18,783,182$

LIABILITIES
Accounts payable and accrued liabilities 6,049,245$ 511 $ 77,258$ 429,984$ Deposits payable 1,636,000 292,938 - 222,752 Due to other funds - 593,000 - 2,160,410 Unearned revenue 9,914,968 - - - Compensated absences 25,287 - - - Advances from other funds - 3,146,933 - - Total liabilities 17,625,500 4,033,382 77,258 2,813,146

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 3,745,467 9,379,259 8,721,902 10,266,573 Lease related 254,644 - - - Total deferred inflows of resources 4,000,111 9,379,259 8,721,902 10,266,573

FUND BALANCES (DEFICITS)
Nonspendable 3,625,721 183,972 592 23,284 Restricted 354,055 26,137,159 798,652 5,680,179 Committed 16,634,550 - - - Assigned 2,994,840 - - - Unassigned (deficit) 24,871,200 - - - Total fund balances (deficits) 48,480,366 26,321,131 799,244 5,703,463 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 70,105,977$ 39,733,772$ 9,598,404$ 18,783,182$ Special Revenue Funds
Development
Fees
HOME
Program Housing
See Notes to Financial Statements.
22 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of uncollectibles):

Accounts
Interest
Federal, state and other governments
Loans
Lease
Due from other funds
Inventories
Prepaid items
Advances to other funds
Total assets

LIABILITIES
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Unearned revenue
Compensated absences
Advances from other funds
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Lease related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Assigned
Unassigned (deficit)
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Capital Projects
Fund
Total Total
Nonmajor Governmental
Funds Funds
79,221,334$ 33,761,058 $ 181,281,011$
- 5,602,478 28,998,426
- 52,457 315,964
962,878 131,455 4,014,880
- 6,180,235 34,286,320
- - 273,562 - - 11,129,498 - - 1,230 - 3,161,805 4,469,747
1,963,986 - 4,488,383
82,148,198$ 48,889,488 $ 269,259,021 $
1,582,209$ 982,179 $ 9,121,386$
- 10,000 2,161,690 - 2,968,970 5,722,380
- 10,287,597 20,202,565
- - 25,287 - 1,341,450 4,488,383
1,582,209 15,590,196 41,721,691
103,881 6,180,236 38,397,318
- 2,458,750 2,713,394
103,881 8,638,986 41,110,712
1,963,986 3,161,805 8,959,360
- 23,867,613 56,837,658
78,498,122 - 95,132,672
- - 2,994,840 - (2,369,112) 22,502,088 80,462,108 24,660,306 186,426,618
82,148,198$ 48,889,488 $ 269,259,021 $
City Capital
Projects
See Notes to Financial Statements.
23 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
24 ATTACHMENT 1

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds 186,426,618$
357,379,463
Deferred outflows-pension related 51,852,696 $
Deferred inflows-pension related 134,357
Total deferred outflows and inflows related to postemployment benefits 51,987,053 Service concession receivable 380,294
Service concession-related deferred inflows of resources (380,294) Loans and grants 38,397,318
Total other long-term assets 38,397,318
47,398,889
Bonds payable (626,805)
Notes payable (378,836)
Leases and SBITA (8,810,284)
Compensated absences (4,860,209)
Accrued interest payable on long-term debt (163,536)
Net pension liability (203,609,250)
Total long-term liabilities (218,448,920)
Net position of governmental activities 463,140,421$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF NAPA, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.

Internal service funds provide services to other funds on a cost-reimbursement basis.

The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

See Notes to Financial Statements.
25 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
General

REVENUES
Taxes 103,830,644$ - $ - $ -$ Licenses, permits and fees 8,536,759 - - - Intergovernmental 9,356,400 - 10,791 20,329,150 Charges for services 9,560,359 4,851,065 261,964 1,137,137 Investment income (loss) 5,323,672 1,283,807 34,432 225,632 Miscellaneous 373,624 - - - Total revenues 136,981,458 6,134,872 307,187 21,691,919

EXPENDITURES
Current:

General Government
City Council 341,908 - - - City Clerk 1,162,495 - - - City Manager 6,774,608 - - - Finance 4,361,343 - - - City Attorney 1,499,219 - - - Human Resources 2,360,742 - - - General Services 9,583,395 - - - Public Safety
Police 37,555,327 - -
-
Fire 24,895,374 87 - - Community development 5,304,223 268,024 174,764 21,252,834 Parks and recreation 10,455,426 7,455 - - Public works 14,408,778 2,989 - - Capital outlay 3,209,505 - - - Debt service:

Principal 1,514,715 - - 108,690 Interest and fiscal charges 66,962 48,489 - 28,988 Total expenditures 123,494,020 327,044 174,764 21,390,512 Excess (deficiency) of revenues
over (under) expenditures 13,487,438 5,807,828 132,423 301,407

OTHER FINANCING SOURCES (USES)
Transfers in 4,900,540 - - - Transfers out (14,695,153) (1,506,890) - (596,420) Lease issuance 1,243 - - - Subscription issuance 2,942,231 - - - Total other financing sources (uses) (6,851,139) (1,506,890) - (596,420) Net change in fund balances 6,636,299 4,300,938 132,423 (295,013) Fund balances (deficit)-beginning 41,844,067 22,020,193 666,821 5,998,476 Fund balances (deficit)-ending 48,480,366$ 26,321,131$ 799,244$ 5,703,463$ Special Revenue Funds
Development
Fees
HOME
Program Housing
See Notes to Financial Statements.
26 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Licenses, permits and fees
Intergovernmental
Charges for services
Investment income (loss)
Miscellaneous
Total revenues

EXPENDITURES
Current:

General Government
City Council
City Clerk
City Manager
Finance
City Attorney
Human Resources
General Services
Public Safety
Police
Fire
Community development
Parks and recreation
Public works
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Lease issuance
Subscription issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Capital Projects
Fund
Total Total
Nonmajor Governmental
Funds Funds
-$ 2,654,528$ 106,485,172$
- - 8,536,759 1,488,250 20,130,756 51,315,347
14,047 4,055,314 19,879,886
- 1,302,870 8,170,413
- 126,928 500,552
1,502,297 28,270,396 194,888,129
- - 341,908 - - 1,162,495 - 81,771 6,856,379 - - 4,361,343 - - 1,499,219 - - 2,360,742 - - 9,583,395 - 90,049 37,645,376 - - 24,895,461 - 7,521,261 34,521,106
- 48,148 10,511,029 6,819,557 8,431 21,239,755
13,031,402 6,050,936 22,291,843
- 1,815,584 3,438,989
- 109,416 253,855
19,850,959 15,725,596 180,962,895
(18,348,662) 12,544,800 13,925,234
29,251,744 12,000 34,164,284
- (16,012,511) (32,810,974) - 5,902,675 5,903,918
- - 2,942,231 29,251,744 (10,097,836) 10,199,459
10,903,082 2,446,964 24,124,693
69,559,026 22,213,342 162,301,925
80,462,108$ 24,660,306 $ 186,426,618 $
City Capital
Projects
See Notes to Financial Statements.
27 ATTACHMENT 1

Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: 24,124,693$ Capital outlay 23,458,660$
Depreciation/amortization expense (13,457,371)
Total adjustment 10,001,289
Earned but unavailable loans and grant revenue (210,106) Loss on disposal of capital assets and other adjustments (8,684,094) Leases and SBITA issued and other adjustments 523,755
Principal payments 3,438,982
Total adjustment 3,962,737
6,060,010
Accrued interest on long-term debt 26,584
Compensated absences (884,309)
Changes in pension liabilities and related deferred outflows and inflows of resources (9,340,263) Total adjustment (10,197,988)
Change in net position of governmental activities 25,056,541$ Internal service funds provide services to other funds on a cost-reimbursement basis.

The net revenue of certain activities of internal service funds is reportedw i t h governmental activities.

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.

CITY OF NAPA, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, inthe Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net position.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statementof Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.

Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortizedi nt h e Statement of Activities.

See Notes to Financial Statements.
28 ATTACHMENT 1



35235,(7$5<)81'6

3URSULHWDU\ IXQGV DFFRXQW IRU &LW\ RSHUDWLRQV ILQDQFHG DQG RSHUDWHG LQ D PDQQHU VLPLODU WR D SULYDWH EXVLQHVV HQWHUSULVH 7KH LQWHQW RI WKH &LW\ LV WKDW WKH FRVW RI SURYLGLQJJRRGVDQG VHUYLFHV EH ILQDQFHG SULPDULO\ WKURXJK XVHU FKDUJHV

:DWHU8WLOLW\)XQG

7KH :DWHU 8WLOLW\ )XQG VXSSRUWV WKH RSHUDWLRQ PDLQWHQDQFH DQG LPSURYHPHQW RIWKHPXQLFLSDOZDWHU V\VWHP VHUYLQJWKH&LW\DQGDGMDFHQWDUHDV7KH&LW\SURYLGHVDQXQLQWHUUXSWHGVXSSO\RIKLJKTXDOLW\DQGORZFRVWZDWHU WRWKH FRPPXQLW\IRUFRQVXPSWLRQDQGILUHSURWHFWLRQ 
6ROLG:DVWHDQG5HF\FOLQJ)XQG

7KH 6ROLG :DVWH DQG 5HF\FOLQJ )XQG LV UHVSRQVLEOH IRU WKH FROOHFWLRQ SURFHVVLQJ SXEOLF HGXFDWLRQ DQG  ORQJWHUP SODQQLQJUHODWHGWRVROLGZDVWHPDWHULDOVJHQHUDWHGLQWKH&LW\RI1DSD 29 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds
ASSETS
Current assets:

Cash and investments 84,860,274$ 13,473,821$ 98,334,095$ 44,796,032$ Receivables (net of uncollectibles):

Accounts 8,216,749 3,111,871 11,328,620 2,326 Interest 134,514 22,212 156,726 69,038 Federal, state and other governments 4,241,870 739,207 4,981,077 803,919 Lease 102,092 51,646 153,738 - Prepaid items 82,661 - 82,661 146,254 Restricted:

Restricted cash and investments 373 137 510 8,309,664 Total current assets 97,638,533 17,398,894 115,037,427 54,127,233 Noncurrent:

Leases receivable, noncurrent 613,241 461,999 1,075,240 - Loans 90,625 - 90,625 - Capital assets - net of accumulated depreciation/amortization 85,007,131 26,080,487 111,087,618 12,322,055 Total noncurrent assets 85,710,997 26,542,486 112,253,483 12,322,055 Total assets 183,349,530 43,941,380 227,290,910 66,449,288

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 611,926 - 611,926 - Pension-related 4,666,823 657,236 5,324,059 638,041 OPEB-related 733,699 105,741 839,440 3,191,704 Total deferred outflows of resources 6,012,448 762,977 6,775,425 3,829,745

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 8,337,563 971,259 9,308,822 760,053 Compensated absences 146,444 30,471 176,915 4,821 Accrued interest 157,967 113,995 271,962 - Unearned revenue 3,130 - 3,130 - Deposits payable 1,939,301 350,928 2,290,229 - Due to other funds 4,476,091 931,027 5,407,118 - Claims payable - - - 3,659,231 Long-term debt 2,526,209 653,207 3,179,416 5,630 Total current liabilities 17,586,705 3,050,887 20,637,592 4,429,735 Noncurrent liabilities:

Compensated absences 606,396 81,508 687,904 85,043 Claims payable - - - 10,664,769 Long-term debt 28,959,130 8,761,423 37,720,553 - Net pension liability 20, 789,844 2,882,955 23,672,799 3,351,217 Net OPEB liability 266,109 38,351 304,460 1,157,612 Total noncurrent liabilities 50,621,479 11,764,237 62,385,716 15,258,641 Total liabilities 68,208,184 14,815,124 83,023,308 19,688,376

DEFERRED INFLOWS OF RESOURCES
Pension-related 155,141 16,532 171,673 171,581 OPEB-related 694,272 100,059 794,331 3,020,187 Lease-related 647,219 485,492 1,132,711 - Total deferred inflows of resources 1,496,632 602,083 2,098,715 3,191,768

NET POSITION
Net investment in capital assets 54,134,091 16,665,994 70,800,085 12,316,425 Restricted for debt service 373 137 510 - Restricted for OPEB - - - 8,309,664 Unrestricted 65,522,698 12,621,019 78,143,717 26,772,800 Total net position 119,657,162$ 29,287,150$ 148,944,312$ 47,398,889$ Business-Type Activities
Water Utility
Solid Waste
and Recycling
See Notes to Financial Statements.
30 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Total
Enterprise Internal
Funds Service Funds

OPERATING REVENUES
Charges for services 38,531,037$ 43,102,773 $ 81,633,810 $ 20,509,091$ Miscellaneous 373,760 171,661 545,421 2,427,604 Total operating revenues 38,904,797 43,274,434 82,179,231 22,936,695

OPERATING EXPENSES
Employee services and benefits 12,728,157 2,011,734 14,739,891 1,678,590 Materials and services 19,844,157 39,565,166 59,409,323 7,348,349 Insurance premiums and claims - - - 11,741,926 Depreciation and amortization 4,993,552 1,653,926 6,647,478 2,444,715 Total operating expenses 37,565,866 43,230,826 80,796,692 23,213,580 Operating income (loss) 1,338,931 43,608 1,382,539 (276,885)

NONOPERATING REVENUES (EXPENSES)
Intergovernmental 236,819 287,412 524,231 - Investment income (loss) 3,681,843 651,082 4,332,925 2,196,610 Interest expense and fiscal charges (1,073,612) (286,807) (1,360,419) (53) Gains (losses) on sale of capital asset - 720 720 224,338 Total nonoperating revenues (expenses) 2,845,050 652,407 3,497,457 2,420,895 Income (loss) before capital contributions and transfers 4,183,9 81 696,015 4,879,996 2,144,010 Capacity fees and capital grants 2,872,559 - 2,872,559 - Transfers in - - - 3,916,000 Transfers out (3,170,380) (2,098,930) (5,269,310) - Change in net position 3,886,160 (1,402,915) 2,483,245 6,060,010 Net position-beginning 115,771,002 30,690,065 146,461,067 41,338,879 Net position-ending 119,657,162$ 29,287,150$ 148,944,312$ 47,398,889$ Business-Type Activities
Water Utility
Solid Waste
and Recycling
See Notes to Financial Statements.
31 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Totals Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 37,539,896$ 44,211,783 $ 81,751,679 $ 21,500,099$ Payments to suppliers and service providers (15,348,098) (39,742,548) (55,090,646) (19,512,434) Payments to employees for salaries and benefits (10,626,738) (1,554,244) (12,180,982) (1,591,525) Other receipts (payments) 373,760 171,661 545,421 5,993,604 Net cash provided by (used for)
operating activities 11,938,820 3,086,652 15,025,472 6,389,744

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - - - 3,916,000 Transfers to other funds (3,170,380) (2,098,930) (5,269,310) - Payments from other funds on interfund borrowings 4,476,091 931,027 5,407,118 - Operating grants and contributions 477,894 140,100 617,994 (803,919) Net cash provided by (used for)
noncapital financing activities 1,783,605 (1,027,803) 755,802 3,112,081

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Connection fees and capital grants 2,872,559 - 2,872,559 - Acquisition and construction of capital assets (2,116,072) (2,663,443) (4,779,515) (4,526,462) Principal paid on capital debt (2,416,528) (640,730) (3,057,258) (7,005) Interest paid on capital debt (1,265,666) (287,650) (1,553,316) (53) Proceeds from sales of assets - 720 720 224,338 Net cash provided by (used for)
capital and related financing activities (2,925,707) (3,591,103) (6,516,810) (4,309,182)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 3,672,140 656,275 4,328,415 2,188,219 Net cash provided by (used for)
investing activities 3,672,140 656,275 4,328,415 2,188,219 Net increase (decrease) in
cash and cash equivalents 14,468,858 (875,979) 13,592,879 7,380,862 Cash and cash equivalents-beginning 70,391,789 14,349,937 84,741,726 45,724,834 Cash and cash equivalents-ending 84,860,647$ 13,473,958$ 98,334,605$ 53,105,696$ Business-Type Activities
Water Utility
Solid Waste
and Recycling
See Notes to Financial Statements.
32 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Internal
Totals Service Funds
Business-Type Activities
Water Utility
Solid Waste
and Recycling

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments 84,860,274$ 13,473,821 $ 98,334,095 $ 44,796,032$ Restricted cash and investments 373 137 510 8,309,664 Total cash and cash equivalents 84,860,647$ 13,473,958$ 98,334,605$ 53,105,696$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) 1,338,931$ 43,608 $ 1,382,539 $ (276,885)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 4,993,552 1,653,926 6,647,478 2,444,715 (Increase) decrease in accounts receivable (924,477) 1,366,465 441,988 991,008 (Increase) decrease in leases receivable (66,078) (7,597) (73,675) - (Increase) decrease in prepaid items (23,177) 11,660 (11,517) 328,415 Increase (decrease) in accounts payable and accrued liabilities 4,519,236 (189,042) 4,330,194 (750,574) Increase (decrease) in unearned revenue 616 - 616 - Increase (decrease) in deposits payable (1,202) (249,858) (251,060) - Increase (decrease) in compensated absences 88,481 18,163 106,644 29,391 Increase (decrease) in claims payable - - - 3,566,000 Increase (decrease) in pension and related items 2,131,763 455,891 2,587,654 556,913 Increase (decrease) in OPEB and related items (118,825) (16,564) (135,389) (499,239) Total adjustments 10,599,889 3,043,044 13,642,933 6,666,629 Net cash provided by (used for)
operating activities 11,938,820$ 3,086,652 $ 15,025,472 $ 6,389,744 $

SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,

AND INVESTING ACTIVITIES
Unrealized gain/(loss) on fair value of investments (755,440)$ (318,546)$ (1,073,986)$ (384,201)$ Purchase of capital assets on account 33,318 - 33,318 - Amortization on bond discount/(premium) (174,845) 3,543 (171,302) - See Notes to Financial Statements.
33 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
34 ATTACHMENT 1



),'8&,$5<)81'

7KLV IXQG LV XVHG WR DFFRXQW IRU DVVHWV KHOG E\WKH &LW\ DV DQDJHQW IRU LQGLYLGXDOV SULYDWH RUJDQL]DWLRQV DQG RWKHU JRYHUQPHQWV 7KH ILQDQFLDO DFWLYLWLHV RI WKHVH IXQGV DUH H[FOXGHG IURP WKH JRYHUQPHQWZLGH ILQDQFLDO VWDWHPHQWV EXWDUHSUHVHQWHGLQVHSDUDWH)LGXFLDU\)XQGILQDQFLDOVWDWHPHQWV 
*DVVHU&RPPXQLW\)DFLOLWLHV'LVWULFW&XVWRGLDO)XQG
7R DFFRXQW IRU WKH ERQG DFWLYLWLHV RI WKH *DVVHU &RPPXQLW\ )DFLOLWLHV 'LVWULFW &)'
 HVWDEOLVKHG 
6HSWHPEHU  IRU WKH SXUSRVH RIFRQVWUXFWLQJ SXEOLFURDGV EULGJHVZDWHU TXDOLW\LPSURYHPHQWVGUDLQDJH LPSURYHPHQWV DQGZDWHUV\VWHPLPSURYHPHQWVDORQJ6RVFRO&DQ\RQ5RDG7KH&)'ZLOOOHY\DQDQQXDOVSHFLDO WD[IRUUHSD\PHQW RIWKHERQG
35 ATTACHMENT 1

Gasser CFD
Custodial Fund
ASSETS
Cash and investments 1,023,351$
Restricted cash and investments 1,207,081
Receivables:

Accounts 32,842
Interest 1,447
Total assets 2,264,721

LIABILITIES
Due to bondholders 2,264,721
Total liabilities 2,264,721

NET POSITION
Restricted for:

Individuals and other -
Total net position -$

CITY OF NAPA, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2024
See Notes to Financial Statements.
36 ATTACHMENT 1

Gasser CFD
Custodial Fund

ADDITIONS
Investment earnings:

Investment income (loss) 89,867$
Total investment earnings 89,867
Special assessments for other governments 1,171,656
Total additions 1,261,523

DEDUCTIONS
Administration 112,617
Payments on conduit bonds, principal 460,000
Payments on conduit bonds, interest 688,906
Total deductions 1,261,523
Net increase (decrease) in fiduciary net position -
Net position-beginning, as restated -
Net position-ending -$

CITY OF NAPA, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For the Year Ended June 30, 2024
See Notes to Financial Statements.
37 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
38 ATTACHMENT 1



127(6727+(%$6,&),1$1&,$/67$7(0(176
39 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
,QGH[RI1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6   
$ 5HSRUWLQJ(QWLW\   % %DVLVRI3UHVHQWDWLRQ   & 0DMRU)XQGV  ' %DVLVRI$FFRXQWLQJ   ( &DVKDQG,QYHVWPHQWV  ) 3URSHUW\7D[HV   * ,QYHQWRULHV   + /RQJ7HUP /RDQ5HFHLYDEOH   , 3UHSDLG,WHPV   - /HDVHV   . 6XEVFULSWLRQ%DVHG,QIRUPDWLRQ7HFKQRORJ\$UUDQJHPHQWV 6%,7$V
  
/ &DSLWDO$VVHWV   
0 &RPSHQVDWHG$EVHQFHV   1 3HQVLRQV   2 2WKHU3RVWHPSOR\PHQW%HQHILWV2WKHU7KDQ3HQVLRQV
23(%
 3 1HW3RVLWLRQ   4 )XQG%DODQFH  5 8VHRI(VWLPDWHV   6 'HIHUUHG2XWIORZV,QIO RZVRI5HVRXUFHV  7 ,PSOHPHQWDWLRQRI1HZ*$6%3URQRXQFHPHQWVIRUWKH<HDU(QGHG -XQH   8 8SFRPLQJ*RYHUQPHQW$FFRXQWLQJ6WDQGDUGV,PSOHPHQWDWLRQV  
127(
 67(:$5'6+,3&203/,$1&($1'$&&2817$%,/,7<  
$ 9LRODWLRQVRI/HJDORU&RQWUDFWXDO3URYLVLRQV   % 'HILFLW) XQG(TXLW\   

127(
 &$6+$1',19(670(176  
$ 'HSRVLWV  % ,QYHVWPHQWV$XWKRUL]HGE\WKH&DOLIRUQLD*RYHUQPHQW &RGHDQGWKH,QYHVWPHQW3ROLF\   & ,QYHVWPHQWV$XWKRUL]HGE\'HEW$JUHHPHQWV  ' 'LVFORVXUHV5HODWLQJWR,QWHUHVW5DWH5LVN  ( 'LVFORVXUHV5HODWLQJWR&UHGLW5LVN  ) ,QYHVWPHQWLQ/RFDO$JHQF\,QYHVWPHQW)
XQGV   * ,QYHVWPHQW+HOGLQ3XEOLF$JHQFLHV5HWLUHPHQW6HUYLFHV 3$56
7UXVW  
+ )DLU9DOXH+LHUDUFK\   
127(
 /($6(5(&(,9$%/(   
$ *RYHUQPHQWDO$FWLYLWLHV  % %XVLQHVV7\SH$FWLYLWLHV  

127(
 /2$165(&(,9$%/(    
127(
 ,17(5)81'75$16$&7,216  
$ 'XH7R)URP 2WKHU)XQGV   % /RQJ7HUP$ GYDQFHV  & 7UDQVIHUV  40 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
,QGH[RI1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$3,7$/$66(76    
$ *RYHUQPHQWDO$FWLYLWLHV  % %XVLQHVV7\SH$FWLYLWLHV  
127(
 /21*7(50'(%7  
$ &XUUHQW<HDU7UDQVDFWLRQVDQG%DODQFHV  % &DOLIRUQLD(QHUJ\&RPPLVVLRQ/RDQ   & +RXVLQJ$XWKRULW\1RWHV3D\DEOH  ' /HDVHV/ LDELOLW\   ( 6XEVFULSWLRQ/LDELOLW\  ) :DWHU)XQG2EOLJDWLRQV   * 6ROLG:DVWH5HYHQXH%RQGV  

127(

 '(%7:,7+12&,7<&200,70(17    

$ 0RUWJDJH5H YHQXH%RQGV  
% &RPPXQLW\)DF LOLWLHV'LVWULFW   
127(
 &203(16$7('$%6(1&(6   
$ *RYHUQPHQWDO$FWLYLWLHV  % %XVLQHVV7\SH$FWLYLWLHV  
127(
 )81'%$/$1&(&/$66,),&$7,21  
127(
 (03/2<((5(7,5(0(176<67(0  
$ 3ODQ'HVFULSWLRQ   % %HQHILWV 3URYLGHG   & (PSOR\HHV&RYHUHG   ' &RQWULEXWLRQV  ( 3HQVLRQ([SHQVHDQG'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFH5HODWHGWR3HQVLRQV  ) 'HILQHG&RQWULEXWLRQ3ODQV  * 2WKHU5HWLUHPHQW6\VWHPV   
127(
 27+(53267(03/2<0(17%(1(),76
23(%
   
$ 3ODQ'HVFULSWL RQDQG(OLJLELOLW\   % (OLJLELOLW\   & &RQWULEXWLRQV  ' 1HW23(%/LDELOLW\   ( &KDQJHVLQWKH1HW23(%/LDELOLW\   ) 23(%([SHQVHDQG'HIHUUHG,QIORZVDQG2XWIORZVRI5HVRXUFHV 5HODWHGWR23(%  * 6XEVWDQWLYH3ODQ  
127(
 5,6.0$1$*(0(17   
127(
 -2,1732:(56$*5((0(17  41 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
,QGH[RI1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &200,70(176$1'&217,1*(1&,(6  
$ &RPPLWPHQWV  % &ODLPVDQG /LWLJDWLRQ   & )HGHUDODQG6W DWH*UDQWV   ' 7D[6KDULQJ$JUHHPHQWV   ( &RQVWUXFWLRQ&RQWUDFWV  ) 1RUWK% D\$TXHGXFW  
127(
 38%/,&35,9$7(6(59,&(&21&(66,21$55$1*(0(17  

127(
 35,253(5,2'$'-8670(176 

127(

 68%6(48(17(9(176 


42 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the City of Napa, California (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and finan cial reporting principles.

The City’s significant accounting policies are described below.

A. Description of Government-wide Financial Statements

The government‐wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primar y government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business
‐type activities, which rely to a significant extent on fees and charges to ext ernal customers for support.

Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

B. Financial Reporting Entity

The City was incorporated on March 23, 1872, under the laws of the State of California. The City’s charter was filed on October 27, 1914. The City operates under a Council-Manager form of government. As required by generally accepted accounting principles, these financial statements present the City of Napa and its component units. The following component units are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City.

Blended component units, although legally separate entities are, in substance, part of the City’s operations and so data from these units are combined with that of the City.

The Housing Authority of the City of Napa (the Housing Authority) was established on May 8, 1942. On July 7, 1969, the City Council declared itself to be the Board of Commissioners of the Housing Authority in accordance with Section 34920 of the Health and Safety Code of the State of California. The City of Napa has operational responsibility for the component unit.

The Parking Authority of the City of Napa (the Parking Authority) was established pursuant to the Streets and Highways Code of the State of California. The City Council established the Parking Authority on April 27, 1970 and designated itself as the governing body. The primary purpose of the Authority is to acquire, maintain and operate off-street parking facilities within the City. The Parking Authority reported no financial transactions during the year ended June 30, 2023.

C. Basis of Presentation

Government-wide Statements include the Statement of Net Position and the Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These statements are presented on an economic resources measure ment focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred regardless of when the related cash flows take place. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for supp ort.

Certain eliminations have been made in regard to interfund acti vities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated, except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government col umn. In the Statement of Activi ties, internal service fund transactions have been eliminated; however, those transactions between governmental an d business-type activities have not been eliminated.
43 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City. Direct expenses are those that are specifically as sociated with a program or function. Certain indirect costs are included in program expenses reported for individual functions and activities. Program revenues include:

1. charges paid by the recipients of goods or services offered by the programs,

2. operating grants and contributions that are restricted to meeting the operational needs of a particular program,

3. capital fees, grants and contributions that are restricted t o financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues are presented as general revenues.

The City may pay for its programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted resour ces may be available to finance program expenditures. The City’s policy is to first apply restricted resources to such programs, followed by general revenues if necessary.

Fund Financial Statements: The fund financial statements provide information about the C ity’s funds, including fiduciary funds and blended compone nt units. Separate statement s for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fun d financial statements is on major individual governmental and enterprise funds, each of which is displayed i n a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are t hose in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsid ies and investment earnings, result from nonexchange transactions or ancillary activities.

The City reported the following major governmental funds:

The General Fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund.

The Development Fees Fund accounts for development fees levied by the City on new construction. City ordinance restricts these revenues for use in construction, major maintenance, and debt service for park, street, drainage, and public safety facilities.

The HOME Program Fund - The City has been awarded grants under the State of Californi a Federal Home Investment Partnerships Program (HOME) for administration of th e following activities: ownership rehabilitation, rental rehabilitation augmenting the Community Development Block Grant Rehabilitation Program, a silent second down payment assistance program; and a rental assistance program.

The Housing Fund accounts for the activities of the Housing Authority which provides and administers affordable housing programs and services to qualified residents. The Housi ng Authority administers Federal funds including Section 8 Housing V ouchers county-wide; Mainstream V ouchers county-wide; Continuum of Care Funds; the Local Housing Fund; the Operating Reserve Fund and the Management of Housing Authority owned properties.

The City Capital Projects Fund accounts for the City’s current c onstruction projects, including streets, park and recreation facilities, and other major City projects. The prima ry sources of funds include City-levied development fees, the state gas tax, and federal and state grants.

The City reports the following major enterprise funds:

The Water Utility Fund accounts for the operations and management of the City’s water system. 44 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The Solid Waste and Recycling Fund accounts for administration of the City’s garbage franchise, in cluding tipping fees, a rate stabilization fund, and other specialized services. The fund does not report the financial position or activities of the City’s franchise operator.

Additionally, the City reports the following fund types:

Internal Service Funds – These funds account for post-employment benefits expense and li abilities, workers’ compensation and genera l liability coverage, management informa tion system maintenance and replacement, and vehicle and equipment maint enance and replacement; all of w hich are provided to other departments on a cost – reimbursement basis.

Custodial Fund – This fund accounts for the bond activities of the Gasser Comm unity Facilities District (CFD).

The CFD was established September 5, 2017 for the purpose of co nstructing public roads, bridge, water quality improvements, drainage improvements, and water system improveme nts along Soscol Canyon Road. The CFD levies an annual special tax for repayment of the bond.

Governmental Funds are used to report the majority of the City’s programs. These f unds are reported in the Fund Financial Statements on the modified accrual basis of accounting, with a focus on current financial resources.

This basis differs from the accrual basis of accounting used to report the government-wide financial statements and the business-type fund financial statements.

Revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end with the exception of grant revenues and sales tax revenues. Grant revenues are considered to be available if collected within 180 days and sales tax are considered to be available if collected within 90 days of the end of the current fiscal year.

Revenues susceptible to accrual include taxes, intergovernmenta l revenues, charges for services and interest revenue. Non- exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include tax es, grants, entitlements, and donations. Revenue from g rants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

D. Basis of Accounting

In the Fund Financial Statements, unearned revenues arise when resources are received by the government before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures.

In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for unearned revenue is removed from the combined balance sheet and revenue is recognized.

Expenditures are recorded when the related fund liability is in curred, except for un-matured interest, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources to the extent that they are matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Proprietary Funds of the City are reported on the accrual basis of accounting in the Fund Financial Statements.

Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

Fiduciary Funds of the City are reported on the accrual basis of accounting in the Fiduciary Fund Financial Statements. Fiduciary fund financial statements fund accounts for the bon d activities of the Gasser Community Facilities District (CFD).
45 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. Budgetary Information

1. Budgetary Basis of Accounting

Annual budgets are adopted on a ba sis consistent with generally accepted accounting principles for the general fund, library fund, and debt service fund. The capital projects fund is appropriated on a project‐length basis. Other special revenue funds and the permanent fund do not have approp riated budgets since other means control the use of these resources (e.g., grant awards and endowment requirements) and sometimes span a period of more than one fiscal year.

The appropriated budget is prepared by fund, function, and depa rtment. The City’s department heads may make transfers of appropriations withi n a department. Transfers of appropriations between departments require the approval of the Council. The lega l level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level.

Appropriations in all budgeted funds lapse at the end of the fi scal year even if they have related encumbrances.

Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitat e effective cash planning and control. While all appropriations and encumbrances technically lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are reappropriated and become part of the subsequent year’s budget pursuant to state regulations, and the encumbrances are automatically reestablished in the next year.

2. Excess of Expenditures over Appropriations

a. Expenditures Exceeding Appropriations

For the year ended June 30, 2024, expenditures exceeded appropr iations in the following funds by function/department:

Fund Functional Area Excess
General Fund Debt Service:

Principal 1,390,949$
Interest and fiscal charges 61,762
Capital outlay 2,330,653
Public Infrastructure Program Fund Special Revenue Fund Public works 135 Property and Business Impovement Special Revenue Fund Community development 1,906 Measure F Special Revenue Fund Capital outlay 278
Encampment Resolution Grant Special Revenue Fund Capital outlay 5,791,918 Debt Service:

Principal 1,815,584
Interest and fiscal charges 109,416
Golf Special Revenue Fund Parks and recreation 27
Capital outlay 3,770
City Capital Projects Fund Public works 870,242
46 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

F. Cash and Investments

The City maintains a cash and investment pool, which includes u nrestricted cash balances and authorized investments for all funds. Highly liquid market investments with maturities of one year or less at time of purchase are carried at amortized cost. All other investments are carried at fair value. The fair value of pooled investments is determined annually and is based on current market prices. The fair value of the funds’ position in the pool is the same as the value of the pool shares. The method used to determine the value of a fund’s equity withdrawn is based on the book value of the fund’s percentage participation at the date of such withdrawal. In the event that a certain fund overdraws its share of pooled cash, a short-term inter-fund loan transaction is recorded to offset the overdraft.

For purposes of the statement of cash flows, cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

With respect to cash and investments with fiscal agents, all investments have an original maturity of less than three months and are considered to be cash equivalents.

Cash and investments restricted by various long-term debt bond covenants are reported as restricted cash and investments in the enterprise f unds. Cash and investments held in a Pension Stabilization Trust are reported as restricted cash and investments in the internal service fund.

GASB Statement No. 72, Fair Value Measurement and Application, provides guidance for determining a fair value measurement for reporting purposes and applying fair value to certain investments and disclosures related to all fair value measurements. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

G. Property Taxes

The County of Napa (the “County”) is permitted by State Law (Proposition 13) to levy taxes at 1% of the full market value of the property (at the time of purchase) and can increas e the assessed property valuation by no more than 2% per year. The County levies property taxes limited to $1 per $100 of assessed valuation for county, cities, schools and special districts’ operati ng expenditures. This property ta x levy is distributed to the different governmental agencies under the State-mandated alternate method of apportion ing taxes (commonly referred to as the “Teeter Plan”) whereby all local agencies with historical tax delinquency rates less than 3%, including cities, receive from the County 100% of their respective shares of the amount of ad valorem taxes levied, without regard to the actual collection of taxes levied. This method was placed in effect by the City and the County in the 1993 – 1994 tax year and remains in effect until the County Board of Supervisors orders its discontinuance.

City property tax revenues are recognized when levied to the extent that the measurable and available criteria have been met. Property taxes become an enforceable lien on property as of March 1; taxes are levied on July 1; taxes are payable in two installments on November 1 and February 1; t axes become delinquent on December 10 and April 10. The County bills and collects the pro perty taxes and remits them to the City.

H. Inventories

Inventory in the governmental funds are for resale and stated at the lower of its weighted average cost or market value.
47 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. Long – Term Loan Receivable

Long-Term loan receivable, which consist of the principal amoun t of the loan plus the accrued borrower's deferred interest is reported in the Governmental Fund statements with offsetting unavailable revenue as resources are not available for expenditure. Long-term loans receivable r eport in the governmental activities on the Government - Wide Statement of Net Position is not offset by un available revenue as it is recorded on an accrual basis at its net realizable value based on an estimate of uncollectible amounts for loan losses.

The Governmental Funds report unavailable revenues from notes and loans receivable as a deferred inflow of resources. These amounts are recognized or reported as revenues in the period that the amounts become available.

J. Prepaid Items

Payments made to vendors for services that will benefit periods beyond June 30, are recorded as prepaid items, and in governmental fund financial st atements are offset equally by nonspendable fund balance, which indicates that they are not in spendable form. Prepaid items are reported under the consumption method, which recognizes the expenditure/expense in the period associated with the goods consumed or the services rendered.

K. Leases

1. Lessee

The City has a policy to recognize a lease liability and a righ t‐to‐use lease asset (lease asset) in the government‐ wide financial statements. The City recognizes lease liabilities with an initial, individual value of $25,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the l ease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Key estimates and judgments related to leases include how the C ity determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

• The City uses the interest rate charged by the lessor as the d iscount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

• The lease term includes the noncancellable period of the lease . Lease payments included in the measurement of the lease liability are composed of fixed payments and purch ase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and w ill remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
48 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Lease assets are reported as right to use along with other capi tal assets and lease liabilities are reported with long - term debt on the st atement of net position.

2. Lessor

The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The def erred inflows of resources a re initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue ove r the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

• The City uses its estimated in cremental borrowing rate as the discount rate for leases.

• The lease term includes the noncancellable period of the lease . Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

L. Subscription-Based Information Technology Arrangements (SBIT As)

The City has a policy to recognize a SBITA liability and a right ‐to‐use subscription asset (SBITA asset) in the financial statements with an initial, individual value of $25,0 00 or more with a subscription term greater than one year.

At the commencement of a subscrip tion, when the subscription as set is placed into service, the SBITA liab ility is measured at the present value of payments expected to be made during the subscription term. Future subscription payments are discounted using the City's incremental borrowing rate and the City recognizes amortization of the discount on the subscription liability as interest expense in subsequent financial reporting periods.

SBITA assets are measured as the sum of the initial subscriptio n liability, payments made to the SBITA vendor before the commencement of the lease term, and capitalizable im plementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the subscription term.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.

• The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.

• The subscription term includes the period during which the City has a noncancelable right to use the underlying IT asset. The subscription term also includes periods covered by an option to extend if it is reasonably certain to be exercised.
49 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

• Subscription payments included in the measurement of the subsc ription liability are composed of fixed payments and purchase option years that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a subscription and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported as long-term debt on the statement of net position.

M. Capital Assets

Capital assets, which include land, buildings, improvements, equipment, and infrastructure (e.g. roads, bridges, sidewalks, and similar items), are reported on the government-wide Statement of Net Position. Capital assets used in enterprise and internal service funds are also reported on t hose Fund Financial Statements. Since the governmental funds report only current, available resources on their Fund Financial Statements, capital outlay in those funds is reported as an expenditure and not as an asset on the balance sheet.

Capital assets are recorded at cost. The City has set the capitalization threshold for reporting general capital assets at $5,000 and infrastructure at $25,000 with a useful life of m ore than one year. Donated assets are recorded at acquisition value at the date of donation. Capital assets acquired under capital leases are recorded at the net present value of the future minimum lease payments.

Major outlays for capital assets are capitalized as projects are constructed.

Depreciation and amortization on recorded capital assets is expensed on the straight-line method over the following estimated useful lives:

N. Compensated Absences

City employees may accumulate earned but unused vacation (up to a certain amount) and sick pay benefits. All annual leave is accrued when incurred and reported in the gover nment-wide and proprietary fund financial statements. A liability for compensated absences is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements that are currently payable. Compensated absences are liquidated by the fund that has recorded the liability. Gov ernmental activities compensated absences are liquidated primarily by the General Fund.

Years
Buildings and improvements 15 - 60
Vehicles and equipment 3 - 7
Roads 20 - 40
Briges 75
Cubs/Gutters/Sidewalks 30 - 50
Traffic Signals 40
Park Improvements 20 - 30
Transmission and Distribution Systems 20 - 60
Street Lights 30 - 40
Underground Utilities 30 - 40
Stormwater 30 - 40
Lease assets 3 - 10
Subscription assets 3 - 10
Asset Type
50 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

O. Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Napa’s California Public Employee’s Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are r eported at fair value. The Gene ral Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City's governmental activities while the pension liability for Business-type activities is liquidated from the respective Enterprise Funds.

Generally accepted accounting principles require that the repor ted results must pertain to liability and asset information within certain defined time frames. For this request, the following time frames are used:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

P. Other Postemployment Benefits Other Than Pensions (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan re cognizes benefit payments when due and payable in accordance with the benefit terms. The General Fund and Internal Service Funds are typically used to liquidate the OPEB liability related to the City's governmental activities while the OPEB liability for Business-type activities is liquidated from the respective Enterprise Funds.

Generally accepted accounting principles require that the repor ted results must pertain to liability and asset information within certain defined time frames. For this report, the following time frames are used:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

Q. Net Position

Net position is the excess of the City’s assets and deferred ou tflows over all its liabilities and deferred inflow. Net position is divided into three captions on the Statement of Net Position.

These captions apply only to net position, which is determined at the government-wide level and proprietary funds and are described below:

Net Investment in Capital Assets describes the portion of net position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include bond proceeds rec eived for use on capital projects, debt service requirements, and special revenue programs subject to limitations regulations and laws underlying such programs.

Unrestricted describes the portion of net position which is not restricted as to use. 51 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R. Fund Balances

The City’s fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes an d expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to these purposes, it may be necessary to report a negative unassigned fund balance. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable represents balances set aside to indicate items that do not rep resent available, or spendable resources even though they are a component of assets. Fund bala nces required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proce eds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Committed fund balances have constraints imposed by formal action (i.e. resolution) of the City Council which may be altered only by the same formal action of the City Council.

Assigned fund balances are amounts constrained by the City’s intent to b e used for a specific purpose, but are neither restricted nor committed. The Finance Director is designated the authority by the Council adopted Fiscal Policy to “assign” amounts to be used for specific purposes.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

S. Use of Estimates

The accompanying basic financial statements have been prepared in accordance with U.S. GAAP. This requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

T. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position or b alance sheet will, when applicable, report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time.

In addition to liabilities, the statement of financial position or balance sheet will, when applicable, report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2024

The requirements of the following accounting standards are effe ctive for the purpose of implementation, if applicable to the City, for the year ended June 30, 2024. The f inancial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.
52 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 100

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to pr ovide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2024.

NOTE 2: STEWARDSHIP, COMPLIA NCE, AND ACCOUNTABILITY

A. Violations of Legal or Contractual Provisions

Note 1.E.2, on the Excess of expenditures over appropriations, describes a budgetary violation that occurred for the year ended June 30, 2024. It also explains the provision provided by law that was used to remedy the violation.

B. Fund Balance/Net Position Deficits

At June 30, 2024, the following funds had a fund balances (deficit) or unrestricted net position (deficit):

The Special Revenue Funds deficits are expected to be eliminated by future grant revenues, intergovernmental, and charges for services.

NOTE 3: CASH AND INVESTMENTS

The City maintains a cash and investment pool, which includes c ash balances and authorized investments of all funds. This pooled cash is invested in an effort to enhance interest earnings while minimizing exposure to risk.

The pooled interest earned is allocated to the funds based on c ash and investment balances in these funds at the end of each monthly accounting period.

A. Deposits

The California Government Code r equires California financial in stitutions to secure the City’s cash deposits by pledging securities as collateral. This Code states that collat eral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to t hose of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The marke t value of pledged securities must equal at least 110% of the City’s cash d eposits. California law also allows institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

The City follows the practice of pooling cash and investments o f all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Fund Fund Type Deficit
Property and Business Improvement Fund Special Revenue Fund 6,539$ Permanent Local Housing Allocation Fund Special Revenue Fund 638,438 Encampment Resolution Grant Fund Special Revenue Fund 1,395 Golf Fund Special Revenue Fund 1,445,881
Community Development Block Grant Fund Special Revenue Fund 277,221 53 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$6+$1',19(670(176
&217,18('


&DVKDQGLQYHVWPHQWVDVRI-XQHDUHFODVVLILHGLQWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDVIROORZV 



% ,QYHVWPHQWV$XWKRUL]HGE\WKH&DOLIRUQLD*RYHUQPHQW&RGHDQG ,QYHVWPHQW3ROLF\ 
7KHWDEOHEHORZLGHQWLILHVWKHLQYHVWPHQWW\SHVDXWKRUL]HGXQGHUWKHSURYLVLRQVRIWKH&LW\ VLQYHVWPHQWSROLF\DQG
LQDFFRUGDQFHZLWKWKH&DOLIRUQLD*RYHUQPHQW&RGH7KLVWDEOHGRHVQRWDGGUHVVLQYHVWPHQWVRIGHEWSURFHHGVKHOG E\ERQGWUXVWHHWKDWDUHJRYHUQHGE\WKHSURYLVLRQVRIWKHGHEWDJUHHPHQWVRIWKH&LW\ 



&DVKDQGLQYHVWPHQWV*RYHUQPHQWDODQG%XVLQHVVW\SHDFWLYLWLHV  5HVWULFWHGFDVKDQGLQYHVWPHQWV 
 
5HVWULFWHGFDVKZLWKILVFDODJHQWV   7RWDO&LW\FDVKDQGLQYHVWPHQWV  


7RWDOFDVKDQGLQYHVWPHQWV 

 
5HVWULFWHGFDVKDQGLQYHVWPHQWVLQ)LGXFLDU\)XQGV
&DVKDQGLQYHVWPHQWVDYDLODEOHIRURSHUDWLRQVLQ)LGXFLDU\)XQGV $XWKRUL]HG,QYHVWPHQW7\SH 0D[LPXP0DWXULW\
0LQLPXP&UHGLW
4XDOLW\ 0D[LPXPLQ3RUWIROLR
0D[LPXP,QYHVWPHQW,Q2QH
,VVXHU
867UHDVXU\%RQGV1RWHVDQG%LOOV <HDUV 1$ 1RQH 1RQH 86*RYHUQPHQW$JHQF\DQG86*RYHUQPHQW
6SRQVRUHG(QWHUSULVH2EOLJDWLRQV
<HDUV 1$ 1RQH 1RQH
6WDWHRI&DOLIRUQLDRU2WKHU/RFDO$JHQF\ <HDUV 1$ 1RQH  5HJLVWHUHG7UHDVXU\1RWHVRU%RQGV <HDUV 1$ 1RQH 
%DQNHUV
$FFHSWDQFHV 'D\V $3  /HVVRURIRU

ZKLFKHYHULVORZHU

&HUWLILFDWHRI'HSRVLW
7LPH'HSRVLW
<HDUV
1RQH 
1HJRWLDEOH&HUWLILFDWHVRI'HSRVLW <HDUV $$  UHJDUGOHVVRIVHFWRU &RPPHUFLDO3DSHU 'D\V $  UHJDUGOHVVRIVHFWRU 0HGLXP7HUP1RWHV <HDUV $  UHJDUGOHVVRIVHFWRU 6WDWHRI&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG

/$,)3RRO

8SRQ'HPDQG 1$ 0D[LPXP$PRXQW
SHUPLWWHGE\/$,)
$GYLVRU\%RDUG
1$
5HSXUFKDVH$JUHHPHQWV 'D\V 1$  
0RQH\0DUNHW0XWXDO)XQGV 1$

 
&DOLIRUQLD$VVHW0DQDJHPHQW3URJUDP 1$ 1$ 1RQH 1RQH
$VVHW%DFNHG6HFXULWLHV <HDUV $$  UHJDUGOHVVRIVHFWRU 6XSUDQDWLRQDOV <HDUV $$  UHJDUGOHVVRIVHFWRU

&ROODWHUDOL]DWLRQPXVWFRPSO\ZLWKVWDWXWRU\UHTXLUHPHQWV

+LJKHUUDWLQJSURYLGHGE\QRWOHVVWKDQWZRQDWLRQDOO\UHFRJQL]HGUDWLQJVHUY LFHV 54 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$6+$1',19(670(176
&217,18('

& ,QYHVWPHQWV$XWKRUL]HGE\'HEW$JUHHPHQWV

,QYHVWPHQWVRIGHEWSURFHHGVKHOGE\ERQGWUXVWHHDUHJRYHUQHGE\SURYLVLRQVRIWKHGHEWDJUHHPHQWVUDWKHUWKDQ WKHJHQHUDOSURYLVLRQVRIWKH&DOLIRUQLD*RYHUQPHQW&RGHRUWKH&LW\ VLQYHVWPHQWSROLF\7KHWDEOHEHORZLGHQWLILHV
WKHLQYHVWPHQWW\SHVWKDWDUHDXWKRUL]HGIRULQYHVWPHQWVKHOGE\WKHERQGWUXVWHH 


' 'LVFORVXUHV5HODWLQJWR,QWHUHVW5DWH5LVN 

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
LQFOXGLQJ LQYHVWPHQWV KHOG E\ ERQG

WUXVWHH
 WR PDUNHW LQWHUHVW UDWH IOXFWXDWLRQV LV SURYLGHG E\ WKH IROORZLQJ WDEOH WKDW VKRZV WKH GLVWULEXWLRQ RI WKH &LW\
VLQYHVWPHQWVDVRI-XQHE\PDWXULW\

$XWKRUL]HG,QYHVWPHQW7\SH 0D[LPXP0DWXULW\ 0LQLPXP&UHGLW5DWLQJ 867UHDVXU\%RQGV1RWHVDQG%LOOV 1RQH 1$
86*RYHUQPHQW$JHQF\2EOLJDWLRQV 1RQH $DDRU$$$IRU6HQLRU'HEW REOLJDWLRQVLVVXHGE\)DQQLH0DH
RU)+/0&
)HGHUDO6HFXULWLHV 1RQH 1$
%DQNHUV
$FFHSWDQFHV QRPRUHWKDQGD\V $3
&RPPHUFLDO3DSHU QRPRUHWKDQ\HDU 1$
&HUWLILFDWHVRI'HSRVLW GD\VRUOHVV $
5HSXUFKDVH$JUHHPHQWV 1$ 1RW5DWHG
/RFDO$JHQF\,QYHVWPHQW)XQG QRPRUHWKDQ\HDUV 1$
0RQH\0DUNHW)XQGV 1$ $$$P$$$P*
%RQGVRU1RWHVLVVXHGE\6WDWHRU0XQLFLSDO
*RYHUQPHQWV
1RQH 2QHRIWKHWZRKLJKHVWUDWLQJV
FDWHJRULHVE\6 3
6KDUHVLQD&DOLIRUQLD&RPPRQ/DZ7UXVW 1$ 1$
3UHIXQGHG0XQLFLSDO2EOLJDWLRQV 1RQH $$$
6WDWH2EOLJDWLRQV 1RQH $
6WDWH2EOLJDWLRQV'LUHFW6KRUW7HUP 1RQH $
6WDWH2EOLJDWLRQV6SHFLDO5HYHQXH%RQGV 1RQH $$
55 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$6+$1',19(670(176
&217,18('



( 'LVFORVXUHV5HODWLQJWR&UHGLW5LVN 

&UHGLWULVNLVPHDVXUHGE\WKHDVVLJQPHQWRIDUDWLQJE\DQDWLRQDOO\UHFRJQL]HGVWDWLVWLFDOUDWLQJRUJDQL]DWLRQ7KH &LW\
VLQYHVWPHQWVDUHUDWHGDVIROORZV




/HVVWKDQ2QH
<HDU
2QHWR7KUHH
<HDUV
7KUHHWR)LYH
<HDUV 7RWDO

      
           
      


              
 
  

 
    
 
   

7RWDO,QYHVWPHQWV 

 


 

 








7RWDO&DVKDQG,QYHVWPHQWV 


&DVKLQEDQNVDQGRQKDQG
&DVKDQGLQYHVWPHQWZLWKILVFDODJHQWV

&DVK DQG LQYHVWPHQWV ZLWK ILVFDO DJHQW UHSUHVHQWV *DVVHU &)'  PLOOL RQ
 3$56 ,5& 6HFWLRQ  7UXVW
 PLOOLRQ

3URSULHWDU\'HEW6HUYLFH

DQG+RXVLQJ$XWKRULW\6HOI6XIILFLHQF\
N

&RUSRUDWH1RWHV
0RQH\0DUNHW)XQGV
866HFXULWLHV

)HGHUDO$JHQF\6HFXULWLHV
$VVHW%DFNHG6HFXULW\
0XQLFLSDO%RQG1RWH
,QYHVWPHQW7\SH
/RFDO$JHQF\,QYHVWPHQW)XQG
867UHDVXU\1RWHV
&HUWLILFDWHRI'HSRVLW
%DQN1RWH
$$$ $$$$$$ $$$%%% 7 RWDO
&HUWLILFDWHRI'HSRVLW        0XQLFLSDO%RQG1RWHV 
       &RUSRUDWH1RWHV  
 
 
0RQH\0DUNHW)XQGV     )HGHUDO$JHQF\6HFXULWLHV     

$VVHW%DFNHG6HFXULW\     %DQN1RWH     

7RWDO,QYHVWPHQWV     
1RW5DWHG

/RFDO$JHQF\,QY HVWPHQW)XQG 

$VVHW%DFNHG6HFXULW\ 

0XQLFLSDO%RQG1RWHV 
0RQH\0DUNHW)XQGV 
([HPSWIURPFUHGLWUDWLQJGLVFORVXUH

867UHDVXU\QRWHV 

&DVKDQGLQY HVWPHQWZLWKILVFDODJHQWV




&DVKLQEDQNVDQGRQKDQG 
7 RWDO&DVKDQG,QY HVWPHQWV 



&DVKDQGLQYHVWPHQWVZLWKILVFDODJHQWUHSUHVHQWV*DVVHU&)' PLOOLRQ
3$56,5&6HFWLRQ7 UXVW

PLOOLRQ
3URSULHWDU\'HEW6HUY LFH

DQG+RXVLQJ$XWKRULW\6HOI6XIILFLHQF\
N

,QY HVWPHQW7 \SH
+HOGE\7 UXVWHH

56 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$6+$1',19(670(176
&217,18('


) ,QYHVWPHQWVLQ/RFDO$JHQF\,QYHVWPHQW)XQGV

7KH &LW\ LV D SDUWLFLSDQW LQ /$,) ZKLFK LV UHJXODWHG E\ &DOLIRUQLD *RYHUQPHQW &RGH 6HFWLRQ   XQGHU WKH
RYHUVLJKW RIWKH7UHDVXUHURI WKH 6WDWH RI &DOLIRUQLD7KH &LW\¶VLQYHVWPHQWVLQ/$,) DW -XQH   LQFOXGHG D SRUWLRQRISRROIXQGVLQYHVWHGLQ6WUXFWXUHG1RWHVDQG$VVHW%DFNHG6HFXULWLHV 

Structured Notes DUH GHEW VHFXULWLHV
RWKHU WKDQ DVVHWEDFNHG VHFXULWLHV
 ZKRVH FDVKIORZ FKDUDFWHULVWLFV

FRXSRQ UDWH UHGHPSWLRQ DPRXQW RU VWDWHG PDWXULW\  GHSHQG XSR Q RQH RU PRUH LQGLFHV DQGRU WKDW KDYH HPEHGGHGIRUZDUGVRURSWLRQV

Asset-Backed Securities WKH EXON RI ZKLFK DUH PRUWJDJHEDFNHG VHFXULWLHV HQWLWOH WKHLU SXUFKDVHUV WR UHFHLYH D VKDUH RIWKHFDVKIORZVIURP SRRORIDVVHWV VXFKDVSULQFLSDOD QGLQWHUHVW UHSD\PHQWVIURPD SRRORIPRUWJDJHV

VXFKDV&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQV
RUFUHGLWFDUGUHFHLYDEOHV

$VRI-XQH WKH&LW\ KDG
LQYHVWHGLQ/$,)ZKLFKKDGLQYHVWHGRIWKHSRROLQYHVWPHQW IXQGVLQ6WUXFWXUHG1RWHVDQG$VVHW%DFN6HFXULWLHV/$,)GHWHUPLQHVIDLUYDOXHRQLWVLQYHVWPHQWSRUWIROLREDVHG RQPDUNHWTXRWDWLRQVIRUWKRVHVHFXULWLHVZKHUHPDUNHWTXRWDWLRQVDUHUHDGLO\DYDLODEOHDQGEDVHGRQDPRUWL]HGFRVW RU EHVW HVWLPDWH IRU WKRVH VHFXULWLHV ZKHUH IDLU YDOXH LV QRW UHDGLO\ DYDLODEOH 7KH &LW\ YDOXHG LWV LQYHVWPHQWV LQ /$,) DV RI -XQH   E\ PXOWLSO\LQJ LWV DFFRXQW EDODQFH ZLWK /$,) WLPHV D IDLU YDOXH IDFWRU GHWHUPLQHG E\ /$,)7KLVIDLUYDOXHIDFWRUZDVGHWHUPLQHGE\GLYLGLQJDOO/$,)SDUWLFLSDQWV¶WRWDODJJUHJDWHDPRUWL]HGFRVWE\ WRWDO DJJUHJDWHIDLUYDOXH7KHIDLUYDOXHRIWKH&LW\¶VSRVLWLRQLQWKHSRROLVWKHVDPHDVWKHYDOXHRIWKHSRROVKDUHV 7KH FUHGLWTXDOLW\UDWLQJRI/$,)LVXQUDWHGDVRI-XQH 
* ,QYHVWPHQWV+HOGLQ3XEOLF$JHQFLHV5HWLUHPHQW6HUYLFHV 3$5 6
7UXVW

'XULQJ WKH \HDU HQGHG -XQH   WKH &LW\ HVWDEOLVKHG DQ LUUHYRFDEOH WUXVW ZLWK 3$56 IRU WKH SXUSRVH RI DFFXPXODWLQJDGGLWLRQDOUHVRXUFHVUHVWULFWHGIRUUHWLUHPHQWEHQHILWV3$56LVWKHWUXVWDGPLQLVWUDWRUZKLOHWKH&LW\ DVWKHSODQDGPLQLVWUDWRULVUHVSRQVLEOHWRSURYLGHGLUHFWLRQ RQWKHXVDJHDQGGLVWULEXWLRQRIWKHIXQGVKHOGLQWKH 3$56 7UXVW 'XULQJ WKH \HDU HQGHG -XQH   WKH &LW\ FRQWULEXWHG  WR WKH 3$56 7UXVW $W -XQHWKH WRWDODPRXQWDFFXPXODWHGLQWKH3$567UXVWZDV 

+ )DLU9DOXH+LHUDUFK\

7KH&LW\FDWHJRUL]HVLWVIDLUYDOXHPHDVXUHPHQWVZLWKLQWKHIDLUYDOXHKLHUDUFK\HVWDEOLVKHGE\JHQHUDOO\DFFHSWHG DFFRXQWLQJSULQFLSOHV7KHKLHUDUFK\LVEDVHGRQWKHYDOXDWLRQLQSXWVXVHGWRPHDVXUHWKHIDLUYDOXHRIWKHDVVHW 7KH KLHUDUFK\ JLYHV WKH KLJKHVW SULRULW\ WR XQDGMXVWHG TXRWHG SULFHV LQ DFWLYH PDUNHWV IRU LGHQWLFDO DVVHWV RU OLDELOLWLHV
/HYHOPHDVXUHPHQWV
DQGWKHORZHVWSULRULW\WRXQREVHUYDEOHLQSXWV
/HYHOPHDVXUHPHQWV
7KHWKUHH
OHYHOVRIWKHIDLUYDOXHKLHUDUFK\DUHGHVFULEHGDVIROORZV 

/HYHO  ± ,QSXWV DUH XQDGMXVWHG TXRWHG SULFHV IRU LGHQWLFDO DV VHWV RU OLDELOLWLHV LQ DFWLYH PDUNHWV DW WKH PHDVXUHPHQWGDWH

/HYHO  ± ,QSXWV RWKHU WKDQ TXRWHG SULFHV LQFOXGHG LQ /HYHO  ZKLFK DUH REVHUYDEOH IRU WKH DVVHWV RU OLDELOLWLHV WKURXJKFRUURERUDWLRQZLWKPDUNHWGDWDDWWKHPHDVXUHPHQWGDWH 
/HYHO±8QREVHUYDEOHLQSXWVWKDWUHIOHFWPDQDJHPHQW
VEHVWHVWLPDWHRIZKDWPDUNHWSDUWLFLSDQWVZRXOGXVH LQ SULFLQJWKHDVVHWVRUOLDELOLWLHVDWWKHPHDVXUHPHQWGDWH 
57 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$6+$1',19(670(176
&217,18('


7KH&LW\KDGWKHIROORZLQJUHFXUULQJIDLUYDOXHPHDVXUHPHQWVDVRI-XQH 



'HEWDQGHTXLW\VHFXULWLHVFODVVLILHGLQ/HYHODUHYDOXHGXVLQJSULFHVTXRWHGLQDFWLYHPDUNHWVIRUWKRVH VHFXULWLHV 'HEWDQGHTXLW\VHFXULWLHVFODVVLILHGLQ/HYHODUHYDOXHGXVLQJWKHIROORZLQJDSSURDFKHV 

‡ &HUWLILFDWHVRI'HSRVLW
TXRWHGPDUNHWSULFHVIRULGHQWLFDOVHFXULWLHVLQPDUNHWVWKDWDUHQRWDFWLYH DQG
‡ )HGHUDO*RYHUQPHQW$JHQF\6HFXULWLHV867UHDVXU\%RQGV1RWHV0XQLFLSDO%RQGV1RWHV &RUSRUDWH1RWHV DQG$VVHW%DFNHG6HFXULWLHV
PDWUL[SULFLQJPRGHO

127(
 /($6(5(&(,9$%/(

$ *RYHUQPHQWDO$FWLYLWLHV

7KHSRUWLRQRIWKH&LW\¶VSURSHUW\LVOHDVHGWRRWKHUV6XFKSURSHUW\LQFOXGHVVSHFLDOSXUSRVHIDFLOLWLHVRIILFHDQG FRPPHUFLDO VSDFH DQG ODQG /HDVH UHFHLYDEOH FRQVLVWV RI DJUHHP HQWV ZLWK RWKHU IRU WKH ULJKWWRXVH RI WKH XQGHUO\LQJDVVHWVDWYDULRXVORFDWLRQVRZQHGE\WKH&LW\7KHWHUPVRIWKHDUUDQJHPHQWVUDQJHIURPWR\HDUV 7KHFDOFXODWHGLQWHUHVWUDWHVXVHGYDU\GHSHQGLQJRQWKHOHQJWK RIWKHOHDVHIURPWR)RUWKHILVFDO \HDUHQGHG-XQHWKH&LW\UHFRJQL]HGLQOHDVHUHYHQXHDQGLQLQWHUHVWUHYHQXH 
$VXPPDU\RIFKDQJHVLQOHDVHUHFHLYDEOHIRUWKHILVFDO\HDUHQGHG-XQHLVDVIROORZV 



$VRI-XQHWKHUHTXLUHGSD\PHQWVIRUWKHVHOHDVHVLQFOXGLQJLQWHUHVWDUH 

   8QFDWHJRUL]HG

     
     
 
    
  
 

     
          
     
          

 
 
 
 

%DQN1RWHV
/HYHO
&DVKDQG'HSRVLWV
0XQLFLSDO%RQG1RWHV
&RUSRUDWH1RWHV
0RQH\0DUNHW)XQGV
866HFXULWLHV

)HGHUDO$JHQF\6HFXULWLHV
$VVHW%DFNHG6HFXULW\
/RFDO$JHQF\,QYHVWPHQW)XQG
&HUWLILFDWHRI'HSRVLW
86 7U HDVXU \  1RWHV
%DODQFH
-XO\ $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
'XH:LWKLQ
2QH<HDU
/HDVHV5HFHLYDEOH   
      
 
<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
 
     
 
    
 
     
 
 
      
            

    
           7 RWDO    
 
58 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /($6(5(&(,9$%/(
&217,18('


$VRI-XQHWKHDPRXQWVUHSRUWHGDVGHIHUUHGLQIORZVRIUHVRXUFHVZLOOEHUHFRJQL]HGDVOHDVHUHYHQXH DV IROORZV




% %XVLQHVV7\SH$FWLYLWLHV

7KHSRUWLRQRIWKH&LW\¶VSURSHUW\LVOHDVHGWRRWKHUV6XFKSURSHUW\LQFOXGHVVSHFLDOSXUSRVHIDFLOLWLHVRIILFHDQG FRPPHUFLDO VSDFH DQG ODQG /HDVH UHFHLYDEOH FRQVLVWV RI DJUHHP HQWV ZLWK RWKHU IRU WKH ULJKWWRXVH RI WKH XQGHUO\LQJDVVHWVDWYDULRXVORFDWLRQVRZQHGE\WKH&LW\7KHWHUPVRIWKHDUUDQJHPHQWVUDQJHIURPWR\HDUV 7KHFDOFXODWHGLQWHUHVWUDWHVXVHGYDU\GHSHQGLQJRQWKHOHQJWK RIWKHOHDVHIURPWR)RUWKHILVFDO \HDUHQGHG-XQHWKH&LW\UHFRJQL]HG
LQOHDVHUHYHQXHDQGLQLQWHUHVWUHYHQXH 
$VXPPDU\RIFKDQJHVLQOHDVHUHFHLYDEOHIRUWKHILVFDO\HDUHQGHG-XQHLVDVIROORZV 



$VRI-XQHWKHUHTXLUHGSD\PHQWVIRUWKHVHOHDVHVLQFOXGLQJLQWHUHVWDUH 



<HDU(QGLQJ
-XQH
$PRUWL]DWLRQ
6FKHGXOH
 

 

 
 



 


 
 

7 RWDO 

%DODQFH
-XO\ $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
'XH:LWKLQ
2QH<HDU
/HDVHV5HFHLYDEOH 
  
 
 
7RWDO 
  
 
 
<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
  
  
     
  
 
 
   


   

    


 
   
7RWDO 
  


59 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /($6(5(&(,9$%/(
&217,18('


$VRI-XQHWKHDPRXQWVUHSRUWHGDVGHIHUUHGLQIORZVRIUHVRXUFHVZLOOEHUHFRJQL]HGDVOHDVHUHYHQXH DV IROORZV




127(
 /2$165(&(,9$%/(

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



<HDU(QGLQJ
-XQH
$PRUWL]DWLRQ
6FKHGXOH
 

 
 
 


 
 
7RWDO 
7HUP
<HDUV
5DWH
%DODQFH
-XQH
*RYHUQPHQWDO)XQGV

*HQHUDO)XQG   
'HYHORSPHQW)HHV)XQG   

+20(3URJUDP   

+RXVLQJ)XQG

/DXUHO0DQRU   
/RFDO+RXVLQJ)XQG YDULRXV  



/RZDQG0RGHUDWH,QFRPLQJ+RXVLQJ    
5'$6XSSOHPHQWDO%DLQ7KRPDV      2WKHU*RYHUQPHQWDO)XQGV

&'%*+RXVLQJ5HKDELOLWDWLRQ3URJUDP    &'%*1RQSURILW&,33URJUDP   



&DO+RPH*UDQW   

3URSULHWDU\)XQGV

:DWHU8WLOLW\)XQG
$SSOLFDEOH/$,)5DWH 



7RWDO3ULPDU\*RYHUQPHQW 

'HVFULSWLRQ
7RWDO*RYHUQPHQWDO)XQGV
7RWDO3URSULHWDU\)XQGV
60 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 ,17(5)81'75$16$&7,216

$ 'XHWR)URP2WKHU)XQGV

$PRXQWVGXHWRDQGGXHIURPRWKHUIXQGVDW-XQHZHUHDVIROORZV 



% /RQJ7HUP$GYDQFHV

$W-XQHWKHIXQGEHORZKDGPDGHDQDGYDQFHWKDWLVQRWH[SHFWHGWREHUHSDLGZLWKLQWKHQH[W\HDU 7KLVORQJWHUPLQWHUIXQGDGYDQFHLVH[SHFWHGWREHUHSDLGZKHQ VXIILFLHQWFDVKLVDY DLODEOHLQWKHERUURZLQJ  IXQG


5HFHLYDEOH)XQG 3D\DEOH)XQG $PRXQW 3XUSRVH
*HQHUDO)XQG 0HDVXUH76SHFLDO5HYHQXH)XQG  2Y HUGUDZQ&DVK *HQHUDO)XQG *ROI&RXUVH6SHFLDO5HYHQXH)XQG  2Y HUGUDZQ&DVK *HQHUDO)XQG 'HYHORSPHQW)HHV6SHFLDO5HYHQXH)XQG 
 2Y HUGUDZQ&DVK
*HQHUDO)XQG 3XEOLF6DIHW\3URJUDPV6SHFLDO5HYHQXH)XQG  2Y HUGUDZQ&DVK *HQHUDO)XQG &RPPXQLW\'HYHORSPHQW%ORFN*UDQW6SHFLDO5HYHQXH) XQG  
 2Y HUGUDZQ&DVK
*HQHUDO)XQG 3HUPDQHQW/RFDO+RXVLQJ$OORFDWLRQ6SHFLDO5HYHQXH )XQG  2Y HUGUDZQ&DVK *HQHUDO)XQG $VVHVVPHQW'LVWULFW6SHFLDO5HYHQXH)XQG   2Y HUGUDZQ&DVK
*HQHUDO)XQG 3URSHUW\DQG%XVLQHVV,PSURYHPHQW6SHFLDO5HYHQXH)XQG  2Y HUGUDZQ&DVK *HQHUDO)XQG +RXVLQJ6SHFLDO5HYHQXH)XQG  2Y HUGUDZQ&DVK *HQHUDO)XQG :DWHU8WLOLW\(QWHUSULVH)XQG 
 2Y HUGUDZQ&DVK
*HQHUDO)XQG 6ROLG:DVWH 5HF\FOLQJ(QWHUSULVH)XQG
 2Y HUGUDZQ&DVK



$GYDQFHV7R $GYDQFHV)URP $PRXQW 3XUSRVH
'ĞŶĞƌĂů&ƵŶĚ 'ŽůĨŽƵƌƐĞ^ƉĞĐŝĂůZĞǀĞŶƵĞ&ƵŶĚ  ) XQG*ROI&DSLWDO3URMHFWV 'ĞŶĞƌĂů&ƵŶĚ ĞǀĞůŽƉŵĞŶƚ&ĞĞƐ^ƉĞĐŝĂůZĞǀĞŶƵĞ&ƵŶĚ   )XQG)LUH6WDWLRQ
ĞǀĞůŽƉŵĞŶƚ&ĞĞƐ^ƉĞĐŝĂůZĞǀĞŶƵĞ&ƵŶĚ 'ŽůĨŽƵƌƐĞ^ƉĞĐŝĂůZĞǀĞŶƵ Ğ&ƵŶĚ  ) XQG*ROI&RXUVH:DWHU,UULJDWLRQ6XUFKDUJH ŝƚLJĂƉŝƚĂůWƌŽũĞĐƚƐ&ƵŶĚ 'ŽůĨŽƵƌƐĞ^ƉĞĐŝĂůZĞǀĞŶƵĞ&ƵŶĚ  ) XQG*ROI&DSLWDO3URMHFWV ŝƚLJĂƉŝƚĂůWƌŽũĞĐƚƐ&ƵŶĚ ĞǀĞůŽƉŵĞŶƚ&ĞĞƐ^ƉĞĐŝĂůZĞǀĞŶƵĞ&ƵŶĚ   )XQG)LUH6WDWLRQ

61 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 ,17(5)81'75$16$&7,216
&217,18('


& 7UDQVIHUV

7UDQVIHUVUHSRUWWKHFRQWULEXWLRQRIUHVRXUFHVIURPRQHIXQGWRDQRWKHU7KHIROORZLQJLVDVXPPDU\RIWUDQVIHUVIRU WKH\HDUHQGHG-XQH




7UDQVIHUV2XW $PRXQW 3XUSRVH
*DV7D[6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG 5RDG0DLQWHQDQFHDQG5HKDELOLWDWLRQ$FW6SHFLDO5HYHQXH)XQG   &LW\ZLGHRY HUKHDG
7UDIILF6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG (QKDQFHG,QIUDVWUXFWXUH)LQDQFLQJ'LVWULFW6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG 'HYHORSPHQW)HHV6SHFLDO5HYHQXH)XQG 

 &LW\ZLGHRY HUKHDG
3DUNLQJ6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG 0HDVXUH)6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG &DOKRPH*UDQW6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG $VVHVVPHQW'LVWULFWV6SHFLDO5HYHQXH)XQG  &LW\ZLGHRY HUKHDG 6ROLG:DVWHDQG5HF\FOLQJ(QWHUSULVH)XQG

 &LW\ZLGHRY HUKHDG
:DWHU8WLOLW\(QWHUSULVH)XQG  &LW\ZLGHRY HUKHDG +RXVLQJ6SHFLDO5HYHQXH)XQG 
 &LW\ZLGHRY HUKHDG
6XEWRWDO 

*HQHUDO)XQG  &DSLWDOSURMHFWV
'HYHORSPHQW)HHV6SHFLDO5HYHQXH)XQG  &DSLWDOSURMHFWV 0HDVXUH76SHFLDO5HYHQXH)XQG  &DSLWDOSURMHFWV 6ROLG:DVWHDQG5HF\FOLQJ(QWHUSULVH)XQG 
 &DSLWDOSURMHFWV
5RDG0DLQWHQDQFHDQG5HKDELOLWDWLRQ$FW6SHFLDO5HYHQXH)XQG   &DSLWDOSURMHFWV
*DV7D[6SHFLDO5HYHQXH)XQG  &DSLWDOSURMHFWV 0HDVXUH)6SHFLDO5HYHQXH)XQG  &DSLWDOSURMHFWV 6XEWRWDO 

*HQHUDO)XQG  )XQGLQWHUQDOVHUY LFHSURJUDPV 7UDIILF6SHFLDO5HYHQXH)XQG  )XQGLQWHUQDOVHUY LFHSURJUDPV 6XEWRWDO 
*HQHUDO)XQG  &LW\ZLGHRY HUKHDG
*HQHUDO)XQG  )XQGLQWHUQDOVHUY LFHSURJUDPV *HQHUDO)XQG  )XQGLQWHUQDOVHUY LFHSURJUDPV *HQHUDO)XQG 
6XEWRWDO 
7RWDO 
62 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$3,7$/$66(76

$ *RYHUQPHQWDO$FWLYLWLHV

*RYHUQPHQWDODFWLYLWLHVFDSLWDODVVHWVDFWLYLW\IRUWKH\HDUHQGHG-XQHZDVDVIROORZV 



'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHZHUHFKDUJHGWRWKHIXQFW LRQVSURJUDPVRIWKHJRYHUQPHQWDODFWLYLWLHVDV

IROORZV


%DODQFH
-XO\ $GMXVWPHQWV
7UDQVIHUV $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
&DSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRULW]HG


 
        



 
   
7RWDOFDSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG   

 
   
&DSLWDODVVHWVEHLQJGHSUHFLDWHGDPRULW]HG

,QIUDVWUXFWXUH 
   
  
%XLOGLQJVDQGLPSURYHPHQWV 

      

,PSURYHPHQWVRWKHUWKDQEXLOGLQJV       
0DFKLQHU\DQGHTXLSPHQW 
   

  
2WKHUFDSLWDODVVHWV       /HDVHDVVHWV 





  
  
6XEVFULSWLRQDVVHWV 
      
7RWDOFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG 






     /HVVDFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ

,QIUDVWUXFWXUH




  



 




%XLOGLQJVDQGLPSURYHPHQWV




 


 


,PSURYHPHQWVRWKHUWKDQEXLOGLQJV


  

 
 

0DFKLQHU\DQGHTXLSPHQW

  


 




2WKHUFDSLWDODVVHWV

     

/HDVHDVVHWV


 
 

 



6XEVFULSWLRQDVVHWV

 
 

 


7RWDODFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ


 

 


 



1HWFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG  


 

 
 




*RYHUQPHQWDODFWLYLWLHVFDSLWDODVVHWVQHW  

   
 

/DQG
&RQVWUXFWLRQLQSURJUHVV

$GMXVWPHQWV SHUWDLQ WR LPPDWHULDO UHFODVVLILFDWLRQV IURP WKH SULRU \HD U LQ DGGLWLRQ WR DQ LPPDWHULDO QHW FRUUHFWLRQ RI SUHYLRXVO\ FDSLWDOL]HG O HDVH DVVHWV DQG FRLQFLGLQJOHDVHOLDELOLW\
*HQHUDOJRYHUQPHQW 
3XEOLFVDIHW\ 


3XEOLFZRUNV 
3DUNVDQGUHFUHDWLRQ 
&RPPXQLW\GHYHORSPHQW 
,QWHUQDOVHUY LFHIXQGV 
7RWDOGHSUHFLDWLRQDPRUWL]DWLRQH[SHQVH 

63 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &$3,7$/$66(76
&217,18('


% %XVLQHVV7\SH$FWLYLWLHV

%XVLQHVVW\SHDFWLYLWLHVFDSLWDODVVHWVDFWLYLW\IRUWKH\HDUHQGHG-XQHZDVDVIROORZV 



'HSUHFLDWLRQDPRUWL]DWLRQH[SHQVHVIRUEXVLQHVVW\SHDFWLYLWLHVIRUWKH\HDUHQGHG-XQHDUHDVIROORZV 


%DODQFH
-XO\ $GMXVWPHQWV
$GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
&DSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG

        



   
   


7RWDOFDSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG         
&DSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG

,QIUDVWUXFWXUH

        

%XLOGLQJVDQGLPSURYHPHQWV 

 

      

,PSURYHPHQWVRWKHUWKDQEXLOGLQJV         
0DFKLQHU\DQGHTXLSPHQW

        
2WKHUFDSLWDODVVHWV 

        


/HDVHDVVHWV          6XEVFULSWLRQDVVHWV 

   
  
7RWDOFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG 
   

   
/HVVDFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ
,QIUDVWUXFWXUH


  

  



%XLOGLQJVDQGLPSURYHPHQWV

 



  



,PSURYHPHQWVRWKHUWKDQEXLOGLQJV   


 
  


0DFKLQHU\DQGHTXLSPHQW

  

 
  


2WKHUFDSLWDODVVHWV


 

 


/HDVHDVVHWV   
 


6XEVFULSWLRQDVVHWV


 





7RWDODFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ


 
 
 


1HWFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG


 
 

 


%XVLQHVVW\SHDFWLYLWLHVFDSLWDODVVHWVQHW 

 

  

$GMXVWPHQWVSHUWDLQWRLPPDWHULDOUHFODVVLILFDWLRQVIURPWKHSULRU\HDU /DQG
&RQVWUXFWLRQLQSURJUHVV
:DWHU8WLOLW\ 


6ROLG:DVWHDQG5HF\FOLQJ 

7RWDOGHSUHFLDWLRQDPRUWL]DWLRQH[SHQVH  64 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /21*7(50'(%7

$ &XUUHQW<HDU7UDQVDFWLRQVDQG%DODQFHV

7KH IROORZLQJ WDEOH VXPPDUL]HV WKH FKDQJHV LQ WKH &LW\¶V ORQJWHUP GHEW DQG RWKHU QRQFXUUHQW OLDELOLWLHV GXULQJ WKH\HDUHQGHG-XQH




% &DOLIRUQLD(QHUJ\&RPPLVVLRQ/RDQ

7KH &LW\ UHFHLYHG D 6WDWH /RDQ RI  PLOOLRQ DW DQ DQQXDO LQWHUHVW UDWH RI  WR EH UHSDLG LQ VHPLDQQXDO SD\PHQWVRYHU\HDUV7KHQRWHSURFHHGVZHUHDSSOLHGWRZDUGVXSJUDGLQJWKHVWUHHWOLJKWVWRHQHUJ\HIILFLHQW/(' VWUHHWOLJKWV7KHUHSODFHPHQWRIWKHVWUHHWOLJKWVZDVFRPSOHWHGLQ2FWREHUDQGGLVEXUVHPHQWZDVUHFHLYHGE\ WKH &LW\ LQ 'HFHPEHU  ,Q WKH HYHQW RI DQ\ GHIDXOW RU EUHDFK WKH 3URPLVVRU\ 1RWH VWDWHV WKDW WKH ORDQ LV LPPHGLDWHO\GXHDQGSD\DEOH

3ULQFLSDODQGLQWHUHVWSD\PHQWVWRPDWXULW\DUHDVIROORZV 


& +RXVLQJ$XWKRULW\1RWHV3D\DEOH

Seminary Street – ,Q6HSWHPEHU

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
$PRXQW
%DODQFH
-XO\ $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
'XHZLWKLQ2QH
<HDU
*RYHUQPHQWDO$FWLYLWLHV
  

  
6HPLQDU\6WUHHWGXH    


  
   
  
/HDVHOLDELOLW\  
 


 

 


6XEVFULSWLRQOLDELOLW\    

 

7RWDO*RYHUQPHQWDO$FWLYLWLHV 

 



 
%XVLQHVV7\SH$FWLYLWLHV
:DWHU5HYHQXH%RQGVGXH  

 

  
SOXV
ERQGSUHPLXP    
 
 
6ROLG:DVWH5HYHQXH%RQGVGXH   


 

OHVV
ERQGGLVFRXQW 

  

 
/HDVHOLDELOLW\    
 
 

6XEVFULSWLRQOLDELOLW\  
 



 
 

7RWDO%XLVQHVV7\SH$FWLYLWLHV 
 



 



 

&DOLIRUQLD(QHUJ\&RPPLVVLRQ
/('
6WUHHWOLJKWV

GXH
&'%*/DXUHO0DQRU
<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
    

   


 
 

7RWDO  
 

65 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /21*7(50'(%7
&217,18('


Laurel Manor Rehabilitation Loan – ,Q1RYHPEHUWKH&LW\RI1DSD+RXVLQJ$XWKRULW\ERUURZHG  SD\DEOH RYHU  \HDUV DW DQ DQQXDO LQWHUHVW UDWH RI  IURP WKH &LW\ RI 1DSD &'%* +RXVLQJ 5HKDELOLWDWLRQ 3URJUDP WR KHOS ILQDQFH  PLOOLRQ LQ LPSURYHPHQWV WR WKH /DXUHO 0DQRU VHQLRU KRXVLQJ FRPSOH[ ,Q WKH HYHQW WKDWWKHSURSHUW\UHKDELOLWDWHGZLWKWKHDVVLVWDQFHRIWKLVORDQLVVROGFRQYH\HGRUDOLHQDWHGWKHHQWLUHUHPDLQLQJ SULQFLSDODQGDFFUXHGLQWHUHVWEDODQFHLVLPPHGLDWHO\GXHDQGSD\DEOH 
3ULQFLSDODQGLQWHUHVWSD\PHQWVWRPDWXULW\DUHDVIROORZV 



' /HDVH/LDELOLW\

*RYHUQPHQWDO$FWLYLWLHV

7KH&LW\KDVHQWHUHGLQWROHDVHVIRUEXLOGLQJVSDFHDQGHTXLSPH QWXVH7KHWHUPVRIWKHDJUHHPHQWVUDQJHIURP WR
\HDUV7KHFDOFXODWHGDQQXDOLQWHUHVWUDWHVRIWRYDULHGEDVHGRQWKHOHQJWKRIWKHOHDVH 
$VRI-XQHWKHFDSLWDOL]HGULJKWWRXVHDVVHWVUHODWHGWROHDVHVZHUHDQGWKHWRWDOOHDVHOLDELOLW\ ZDV

RIZKLFK

LVUHSRUWHGDVDFXUUHQWOL DELOLW\UHSUHVHQWLQJWKHDPRXQWGXHZLWKLQWKHQH[W ILVFDO\HDU

3ULQFLSDODQGLQWHUHVWSD\PHQWVWRPDWXULW\DUHDVIROORZV 

<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
   

  




 

7RWDO    <HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
   
  
  
 
 
  
    
  
 
 


7RWDO    <HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
 

 
   

       
  


      

 
  
      
   

      

 
   
       7RWDO 

  
 
66 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /21*7(50'(%7
&217,18('


%XVLQHVV7\SH$FWLYLWLHV

7KH &LW\KDV HQWHUHG LQWRDOHDVHIRUEXLOGLQJVSDFH7KHWHUPVRIWKHDJUHHPHQWLV\HDUV7KHFDOFXODWHGDQQXDO LQWHUHVWUDWHLVEDVHGRQWKHOHQJWKRIWKHOHDVH 
$VRI-XQHWKHFDSLWDOL]HGULJKWWRXVHDVVHWVUHODWHGWROHDVHVZHUHDQGWKHWRWDOOHDVHOLDELOLW\ ZDV 
RI ZKLFK
LVUHSRUWHGDV DFXUUHQWOLDELOLW\UHSUHVHQWLQJWKHDPRXQW GXH ZLWKLQWKHQH[W ILVFDO\HDU

3ULQFLSDODQGLQWHUHVWSD\PHQWVWRPDWXULW\DUHDVIROORZV 



( 6XEVFULSWLRQ/LDELOLW\

*RYHUQPHQWDO$FWLYLWLHV

7KH &LW\ KDV HQWHUHG LQWR VXEVFULSWLRQEDVHG LQIRUPDWLRQ WHFKQRORJ\ DUUDQJHPHQWV 6%,7$V
IRUVHUYLFHVUHODWHG
WR FORXGEDVHG VRIWZDUH DSSOLFDWLRQV GDWD VWRUDJH DQG PDQDJHPH QW VHUYLFHV 8QGHU WKH WHUPV RI WKHVH DUUDQJHPHQWV WKH &LW\ GRHV QRW WDNH SRVVHVVLRQ RI WKH VRIWZDUH DW DQ\ WLPH DQG WKH YHQGRU SURYLGHVRQJRLQJ VHUYLFHVIRUWKHVRIWZDUH
VRSHUDWLRQ7KHVXEVFULSWLRQSHULRGVYDU\ZLWKLQLWLDOQRQFDQFHOODEOH WHUPVUDQJLQJIURP WR\HDUV7KHFDOFXODWHGLQWHUHVWUDWHXVHGZDVEHWZHHQWRGHSHQGLQJRQWKH OHQJWKRIWKH6%,7$ DQGGDWHRIWKHDJUHHPHQW

$VRI-XQHWKHFDSLWDOL]HGULJKWWRXVHDVVHWVUHODWHGWR6%,7$VZHUHDQGWKHWRWDOVXEVFULSWLRQ OLDELOLW\ ZDV  RI ZKLFK 
LV UHSRUWHG DV D FXUUHQW OLDELOLW\ UHSUHVHQWLQJ WKH DPRXQW GXH ZLWKLQ WKHQH[WILVFDO\HDU

7KHDQQXDOGHEWVHUYLFHUHTXLUHPHQWVRQWKHVXEVFULSWLRQOLDELOLW\DUHDVIROORZV 



%XVLQHVV7\SH$FWLYLWLHV

7KH &LW\ KDV HQWHUHG LQWR VXEVFULSWLRQEDVHG LQIRUPDWLRQ WHFKQRORJ\ DUUDQJHPHQWV 6%,7$V
IRUVHUYLFHVUHODWHG
WR FORXGEDVHG VRIWZDUH DSSOLFDWLRQV GDWD VWRUDJH DQG PDQDJHPH QW VHUYLFHV 8QGHU WKH WHUPV RI WKHVH DUUDQJHPHQWV WKH &LW\ GRHV QRW WDNH SRVVHVVLRQ RI WKH VRIWZDUH DW DQ\ WLPH DQG WKH YHQGRU SURYLGHVRQJRLQJ <HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
 
    
       
   

 
  
 

 
 

7RWDO 
 
  
<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO

    
  
  

         


         7RWDO  

   
67 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /21*7(50'(%7
&217,18('


VHUYLFHVIRUWKHVRIWZDUH
VRSHUDWLRQ7KHVXEVFULSWLRQSHULRGVYDU\ZLWKLQLWLDOQRQFDQFHOODEOH WHUPVUDQJLQJIURP WR\HDUV7KHFDOFXODWHGLQWHUHVWUDWHXVHGZDVEHWZHHQWRGHSHQGLQJRQWKH OHQJWKRIWKH6%,7$ DQGGDWHRIWKHDJUHHPHQW

$VRI-XQHWKHFDSLWDOL]HGULJKWWRXVHDVVHWVUHODWHGWR6%,7$VZHUHDQGWKHWRWDOVXEVFULSWLRQ OLDELOLW\ZDV
RIZKLFK
LVUHSRUWHGDVDFXUU HQWOLDELOLW\UHSUHVHQWLQJWKHDPRXQWGXHZLWKLQWKH QH[WILVFDO\HDU

7KHDQQXDOGHEWVHUYLFHUHTXLUHPHQWVRQWKHVXEVFULSWLRQOLDELOLW\DUHDVIROORZV 



) :DWHU)XQG2EOLJDWLRQV

,Q$SULO  WKH &LW\ LVVXHG 6HULHV  :DWHU 5HYHQXH %RQGVIRU WKH SULQFLSDO DPRXQW RI  7KH SURFHHGVRIWKHVDOHRIWKHERQGZHUHXVHGWRSURYLGHIXQGLQJWRILQDQFHLPSURYHPHQWVWRWKH&LW\¶VZDWHUV\VWHP ,Q)HEUXDU\WKH&LW\UHIXQGHGWKH6HULHV:DWHU5HYHQXH%RQGVDQGSDLGRIIRWKHUGHEWREOLJDWLRQVRI WKH :DWHU (QWHUSULVH WKURXJK WKH LVVXH RI WKH 6HULHV  :DWHU 5HYHQXH %RQGV IRU WKH SULQFLSDO DPRXQW RI 7KH LVVXDQFH RI WKHVH UHIXQGLQJ ERQGV UHVXOWHG LQFDVK IORZ VDYLQJV RYHU WKH OLIH RI WKH ERQGV RI 
DQGDQHFRQRPLFJDLQ
GLIIHUHQFHEHWZHHQWKHSUHVHQWYDOXHRIWKHROGDQGQHZGHEWVHUYLFHSD\PHQWV 
RI
7KHLVVXDQFHSUHPLXPLVUHSRUWHGLQORQJWHUPGHEWGXHRQWKHEDODQFHVKHHWDQGZLOOEHDPRUWL]HG RYHU\HDUV
WKHUHPDLQLQJOLIHRIWKHERQGV
$VRI-XQHWKHEDODQFHRIWKHSUHPLXPLV 
7KH  %RQGV EHDU LQWHUHVW SD\DEOH ELDQQXDOO\ RQ 0D\  DQG 1RYHPEHU  RI HDFK \HDU FRPPHQFLQJ RQ 0D\XQWLOPDWXULW\LQ0D\'HEW VHUYLFHLVVHFXUHG E\DSOHGJHRIQHWUHYHQXHVRIWKH&LW\¶V:DWHU 6\VWHP,QWHUHVWSDLGLQWKHFXUUHQWILVFDO\HDUDQGWKHQHWFXVWRPHUUHYHQXHVZHUHDQG UHVSHFWLYHO\ 7KH WRWDO SULQFLSDO DQG LQWHUHVW UHPDLQLQJ WR EHSDLG RQ WKH ERQGV LV DQG  UHVSHFWLYHO\8QGHUWKH,QGHQWXUHRI7UXVWIRUWKHERQGVWKHU HPHGLHVIRUDQHYHQWRIGHIDXOWLQFOXGHDQ\UHPHG\ DYDLODEOH XQGHU ODZ RU HTXLW\ LQFOXGLQJ GHFODULQJ WKH SULQFLSDO DPRXQW RI DQ\ RXWVWDQGLQJ 6HULHV  %RQGV WRJHWKHUZLWKDFFUXHGLQWHUHVWWREHLPPHGLDWHO\GXHDQGSD\DEOH 
7KHSOHGJHRIIXWXUH:DWHU6\VWHP5HYHQXHVHQGVXSRQUHSD\PHQW RIWKHRULJLQDOLVVXHDPRXQWRIPLOOLRQ ZKLFKLVVFKHGXOHGWRRFFXULQ

3ULQFLSDODQGLQWHUHVWSD\PHQWVWRPDWXULW\DUHDVIROORZV 

<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
 
 
   
 
         
   
       

    
     

7RWDO 
    
<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHV W 7RWDO
 
   
                
 


   
 
          

7RWDO     
68 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 /21*7(50'(%7
&217,18('


* 6ROLG:DVWH5HYHQXH%RQGV

$FTXLVLWLRQ DQG FRQVWUXFWLRQ RI FDSLWDO LPSURYHPHQWV DW WKH &LW\ V 0DWHULDOV 'LYHUVLRQ )DFLOLW\ 7KH  %RQGV
EHDULQWHUHVWSD\DEOHELDQQXDOO\RQ)HEUXDU\DQG$XJXVWRIHDFK\HDUFRPPHQFLQJRQ)HEUXDU\XQWLO PDWXULW\LQ$XJXVW'HEWVHUYLFHLVVHFXUHGE\DSOHGJHRIQHWUHYHQXHVRIWKH&LW\¶V6ROLG:DVWH6\VWHP7KH ILUVWSULQFLSDOSD\PHQWRQWKH6HULHV6ROLG:DVWH5HYHQXH%RQGVZDVGXH$XJXVW,QWHUHVWSDLGLQWKH FXUUHQWILVFDO\HDUDQGWKHQHWFXVWRPHUUHYHQXHVZHUH DQGUHVSHFWLYHO\7KHWRWDOSULQFLSDO DQGLQWHUHVWUHPDLQLQJWREHSDLGRQWKHERQGVLV
DQG
UHVSHFWLYHO\8QGHUWKH,QGHQWXUHRI
7UXVWIRUWKHERQGVWKHUHPHGLHVIRUDQHYHQWRIGHIDXOWLQFOXGHDQ\UHPHG\DYDLODEOHXQGHUODZRUHTXLW\LQFOXGLQJ GHFODULQJ WKH SULQFLSDO DPRXQW RI DQ\ RXWVWDQGLQJ 6HULHV  % RQGV WRJHWKHU ZLWK DFFUXHG LQWHUHVW WR EH LPPHGLDWHO\GXHDQGSD\DEOH

,Q2FWREHUWKH&LW\LVVXHG6HULHV6ROLG:DVWH5HYHQXH%RQGVIRUWKHSULQFLSDODPRXQWRI 7KH SURFHHGV RI WKH VDOH RI WKH ERQG ZHUH XVHG WR SURYLGH IXQGLQJ WR ILQDQFH WKH FRVWV RI WKH SOHGJH RI IXWXUH 6ROLG :DVWH 6\VWHP 5HYHQXHV HQGV XSRQ UHSD\PHQW RI WKH RULJLQDO  LVVXH DPRXQW RI  PLOOLRQ ZKLFK LV VFKHGXOHGWR RFFXULQ

3ULQFLSDODQGLQWHUHVWSD\PHQWVWRPDWXULW\DUHDVIROORZV 



127(

 '(%7:,7+12&,7<&200,70(17

$ 0RUWJDJH5HYHQXH%RQGV

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



<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
 
   
  
 
 
       
 


  
  
 

    7 RWDO
 
 

<HDURI,VVXH 3URMHFW
2ULJLQDO
$PRXQW 0DWXULW\'DWH
3ULQFLSDO
%DODQFH
-XQH
+RXVLQJDXWKRULW\


6LOYHUDGR&UHHN$  -XQH   0DJQROLD3DUN6HULHV$   'HFHPEHU  
 

69 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(

 '(%7:,7+12&,7<&200,70(17
&217,18('


% &RPPXQLW\)DFLOLWLHV'LVWULFW

7KH &RPPXQLW\ )DFLOLWLHV 'LVWULFW ZDV IRUPHG DQG HVWDEOLVKHG E\ WKH &LW\ &RXQFLO DV OHJLVODWLYH ERG\ RI WKH &RPPXQLW\)DFLOLWLHV'LVWULFWXQGHUWKH0HOOR5RRV&RPPXQLW\)DFLOLWLHV$FWRI DVDPHQGHGSXUVXDQWWRD
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

IRUWKHSXUSRVHRIDFTXLVLWLRQFRQVWUXFWLRQDQGFRPSOHWLRQRIFHUWDLQIDFLOLWLHVDQGLPSURYHPHQWV WR EH RZQHG DQG RSHUDWHG E\ WKH &LW\ 7KH WRWDO SULQFLSDO DQG LQWH UHVW UHPDLQLQJ WR EH SDLG RQ WKH ERQG LV UHVSHFWLYHO\DQG



127(
 &203(16$7('$%6(1&(6

$ *RYHUQPHQWDO$FWLYLWLHV

$VXPPDU\RIFKDQJHVLQWKHFRPSHQVDWHGDEVHQFHVEDODQFHVIRUW KHJRYHUQPHQWDODFWLYLWLHVIRUWKH\HDUHQGHG -XQHLVDVIROORZV




&RPSHQVDWHGDEVHQFHVLQWKHJRYHUQPHQWDODFWLYLWLHVDUHREOLJDWLRQVRIWKHIROORZLQJIXQGV 



% %XVLQHVV7\SH$FWLYLWLHV

$VXPPDU\RIFKDQJHVLQWKHFRPSHQVDWHGDEVHQFHVEDODQFHVIRUW KHEXVLQHVVW\SHDFWLYLWLHVIRUWKH\HDUHQGHG -XQHLVDVIROORZV




&RPSHQVDWHGDEVHQFHVLQWKHEXVLQHVVW\SHDFWLYLWLHVDUHREOLJDWLRQVRIWKHIROORZLQJIXQGV 






%DODQFH
-XO\ $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
'XHZLWKLQ2QH
<HDU
&RPSHQVDWHG$EVHQFHV 
  


 
   
*RYHUQPHQWDO)XQGV 

5LVN0DQDJHPHQW,QWHUQDO6HUYLFH)XQG 

)OHHW,QWHUQDO6HUYLFH)XQG 
7RWDO 

%DODQFH
-XO\ $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
'XHZLWKLQ2QH
<HDU
&RPSHQVDWHG$EVHQFHV  


 
 
 
:DWHU8WLOLW\)XQG 
6ROLG:DVWHDQG5HF\FOLQJ)XQG 

7RWDO 

70 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024

NOTE 11: FUND BALANCE CLASSIFICATION

Detailed classifications of the City’s Fund Balances, as of June 30, 2024, are as follows:

NOTE 12: EMPLOYEE RETIREMENT SYSTEM

A. Plan Description

The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to all qualified permanent and probationary employees and their beneficiaries eligible to participate in either the Safety (Police and Fire) or Miscellaneous (all other) plan. It is part of the Public Agency portion of the California Public Employees Retire ment System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employee’s Retirement Law. The City of Napa selects optional benefit provisions from the benefit menu by co ntract with CalPERS and adopts those benefits through local resolutions. CalPERS issues publicly available re ports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office at 400 Q Street, Sacramento, CA 95811 or on the CalPERS website at www.calpers.ca.gov.

Assembly Bill (AB) 340 pension reform created the Public Employ ees’ Pension Reform Act (PEPRA) that implemented new benefit formulas and final compensation period, as well as new contribution requirements for new employees hired on or after January 1, 2013 who meet the definition of new member under PEPRA.

General Fund
Development
Fees
HOME
Program Housing
City Capital
Projects
Non-major
Governmental
Funds
Total
Governmental
Funds
Nonspendable
Inventories 1,230 $ - $ - $ - $ - $ - $ 1,230$ Prepaid items 1,283,694 372 592 23,284 - 3,161,805 4,469,747 Advances to other funds 2,340,797 183,600 - - 1,963,986 - 4,488,383 Total nonspendable 3,625,721 183,972 592 23,284 1,963,986 3,161,805 8,959,360 Restricted
Senate Bill (SB) 1186 reserve 354,055 - - - - - 354,055 Designated projects and
Programs (including parking) - 26,137,159 - - - 13,782,424 39,919,583 Grants - - 798,652 - - 252,128 1,050,780 Housing programs - - - 5,680,179 - - 5,680,179 Red light camera - - - - - 706,695 706,695 A
ssessment districts - - - - - 7,678,710 7,678,710 Tourism Improvement District (TID) - - - - - 1,447,656 1,447,656 Total restricted 354,055 26,137,159 798,652 5,680,179 - 23,867,613 56,837,658 Committed
Earthquake/flood events 16,634,550 - - - - - 16,634,550 Capital projects - - - - 78,498,122 - 78,498,122 Total committed 16,634,550 - - - 78,498,122 - 95,132,672 Assigned
On-going projects and programs 2,994,840 - - - - - 2,994,840 Total assigned 2,994,840 - - - - - 2,994,840 Unassigned (deficit) 24,871,200 - - - - (2,369,112) 22,502,088 Total fund balances 48,480,366$ 26,321,131$ 799,244$ 5,703,463$ 80,462,108$ 24,660,306$ 186,426,618$ 71 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('


7KH WDEOH EHORZ SURYLGHV LQIRUPDWLRQ RQ WKH EHQHILW IRUPXOD ILQDO FRPSHQVDWLRQ SHULRG DQG WKH HPSOR\HU DQG PHPEHU FRQWULEXWLRQ UDWHV HIIHFWLYH -XQH   IRU DQ\ VDIHW\ DQG PLVFHOODQHRXV HPSOR\HHV WKDW PHHW WKH GHILQLWLRQRIDQHZPHPEHUXQGHU3(35$



% %HQHILWV3URYLGHG

&DO3(56SURYLGHVVHUYLFHUHWLUHPHQWDQGGLVDELOLW\EHQHILWVDQQXDOFRVWVRIOLYLQJDGMXVWPHQWVDQGGHDWKEHQHILWV WRSODQPHPEHUVZKRPXVWEHSXEOLFHPSOR\HHVDQGEHQHILFLDULHV%HQHILWVDUHEDVHGRQ\HDUVRIFUHGLWHGVHUYLFH HTXDOWRRQH\HDURIIXOOWLPHHPSOR\PHQW$FODVVLF&DO3(56PHPEHURU3XEOLF(PSOR\HHV¶3HQVLRQ5HIRUP$FW RI 
3(35$
 6DIHW\ PHPEHU EHFRPHV HOLJLEOH IRU VHUYLFH UHWLUHPHQW XSRQ DWWDLQPHQW RI DJH  ZLWK DW OHDVW  \HDUVRIFUHGLWHGVHUYLFH
WRWDOVHUYLFHDFURVVDOO&DO3(56HPSOR\HUVDQGZLWKFHUWDLQRWKHU5HWLUHPHQW6\VWHPV ZLWK ZKLFK &DO3(56 KDV UHFLSURFLW\ DJUHHPHQWV
 3(35$ PLVFHOODQHRXV PHPEHUV EHFRPH HOLJLEOH IRU VHUYLFH UHWLUHPHQWXSRQDWWDLQPHQWRIDJHZLWKDWOHDVW\HDUVRIVHUYLFH$OOPHPEHUVDUHHOLJLEOHIRUQRQGXW\GLVDELOLW\ EHQHILWV DIWHU  \HDUV RI FUHGLWHG VHUYLFH7KH GHDWK EHQHILW LV RQH RI WKH IROORZLQJ  WKH %DVLF 'HDWK %HQHILW WKH
,QGH[HG /HYHO RI 

 6XUYLYRU %HQHILWV
IRU 0LVFHOODQHRXV DQGORFDO )LUH PHPEHUV RQO\
 RU WKH )RXUWK /HYHO RI


 6XUYLYRU %HQHILWV
IRU ORFDO 3ROLFH PHPEHUV RQO\
 7KH VWD QGDUG FRVW RI OLYLQJ DGMXVWPHQW
&2/$
 LV 
 SHUFHQW$QQXDODGMXVWPHQWVDUHFDOFXODWHGE\ILUVWGHWHUPLQLQJWKHOHVVHURI SHUFHQWFRPSRXQGHGIURPWKH
HQG RIWKH\HDURIUHWLUHPHQWRU
DFWXDOUDWHRILQIODWLRQ

7KH3ODQV¶SURYLVLRQVDQGEHQHILWVLQHIIHFWDW-XQHDUHVXPPDUL]HGDVIROORZV 


%HQHILW)RUPXOD 0LV FHOODQHRXV 
 DWDJH
6DIHW\
 DWDJH 

)LQDOFRPSHQVDWLRQSHULRG \HDUDY HUDJH \HDUDY HUDJH (PSOR\HUFRQWULEXWLRQUDWHDVD
SUHFHQWDJHRISD\UROO
RIUHSRUWDEOH

FRPSHQVDWLRQ

RIUHSRUWDEOH

FRPSHQVDWLRQ
0HPEHUFRQWULEXWLRQUDWHDVD
SHUFHQWDJHRISD\UROO
RIUHSRUWDEOH

FRPSHQVDWLRQ
RIUHSRUWDEOH

FRPSHQVDWLRQ
+LUHGDWH
&ODVVLF0HPEHUV

3ULRUWR
'HFHPEHU


7LHU
%HWZHHQ
'HFHPEHU
DQG
-DQXDU\

3(35$

2QRUDIWHU
-DQXDU\

%HQHILWIRUPXOD # # #
%HQHILWY HVWLQJVFKHGXOH \HDUVVHUY LFH \HDUVVHUY LFH \HDUVV HUYLFH %HQHILWSD\PHQWV 0RQWKO\IRUOLIH 0RQWKO\IRUOLIH 0RQWKO\IRUOLI H 5HWLUHPHQWDJH   
0RQWKO\EHQHILWVDVDRIHOLJLEOHFRPSHQVDWLRQ WR  WR WR
5HTXLUHGHPSOR\HHFRQWULEXWLRQUDWHV   
5HTXLUHGHPSOR\HHFRVWVKDUH   
5HTXLUHG&LW\&RXQFLOFRVWVKDUH   
5HTXLUHGHPSOR\HUFRQWULEXWLRQUDWHV    0LVFHOODQHRXV
72 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('






& (PSOR\HHV&RYHUHG

$W-XQHWKHIROORZLQJHPSOR\HHVZHUHFRYHUHGE\WKHEHQHILWWHUPVIRUHDFK3ODQ 



' &RQWULEXWLRQV

$FWLYH&ODVVLFPHPEHUVLQWKHSODQVDUHUHTXLUHGWRFRQWULEXWH IRUPLVFHOODQHRXVHPSOR\HHVRU IRUSXEOLF
VDIHW\ HPSOR\HHV RI WKHLU DQQXDO FRYHUHG VDODU\ $FWLYH 7LHU  PHPEHUV DUH UHTXLUHG WR FRQWULEXWH  IRU PLVFHOODQHRXV HPSOR\HHV RU
 IRU SXEOLF VDIHW\ HPSOR\HHV RI WKHLU DQQXDO FRYHUHG VDODU\$FWLYH 3(35$SODQ PHPEHUV DUH UHTXLUHG WR FRQWULEXWH  RI WKH WRWDO QRUPDO FRVW DV DFWXDULDOO\ FDOFXODWHG E\ &DO3(56 7KH &LW\RI 1DSDLVUHTXLUHGWRFRQWULEXWHWKHDFWXDULDOO\GHWHUPLQHGUHPDLQLQJDPRXQWVQHFHVVDU\WRIXQGWKHEHQHILWV IRU LWV PHPEHUV 7KH DFWXDULDO PHWKRGV DQG DVVXPSWLRQV XVHG DUH WKRVH DGRSWHG E\ WKH &DO3(56 %RDUG RI $GPLQLVWUDWLRQ 7KH UHTXLUHG HPSOR\HU FRQWULEXWLRQ UDWH IRU WKH  \HDU HQGHG -XQH   ZDV  IRU +LUHGDWH
&ODVVLF0HPEHUV

3ULRUWR
-DQXDU\

7LHU
%HWZHHQ
-DQXDU\
DQG
-DQXDU\

3(35$

2QRUDIWHU
-DQXDU\

%HQHILWIRUPXOD # # #
%HQHILWY HVWLQJVFKHGXOH \HDUVVHUY LFH \HDUVVHUY LFH \HDUVV HUYLFH %HQHILWSD\PHQWV 0RQWKO\IRUOLIH 0RQWKO\IRUOLIH 0RQWKO\IRUOLI H 5HWLUHPHQWDJH   
0RQWKO\EHQHILWVDVDRIHOLJLEOHFRPSHQVDWLRQ  WR  WR 5HTXLUHGHPSOR\HHFRQWULEXWLRQUDWHV

 
5HTXLUHGHPSOR\HHFRVWVKDUH132$   
5HTXLUHGHPSOR\HHFRVWVKDUH308   
5HTXLUHGHPSOR\HUFRQWULEXWLRQUDWHV    6DIHW\3ROLFH
+LUHGDWH
&ODVVLF0HPEHUV

3ULRUWR
$XJXVW

7LHU
%HWZHHQ
$XJXVW
DQG
-DQXDU\

3(35$

2QRUDIWHU
-DQXDU\

%HQHILWIRUPXOD # # #
%HQHILWY HVWLQJVFKHGXOH \HDUVVHUYLFH \HDUVVHUYLFH \HDUVVHUYLFH %HQHILWSD\PHQWV 0RQWKO\IRUOLIH 0RQWKO\IRUOLIH 0RQWKO\IRUOLI H 5HWLUHPHQWDJH   
0RQWKO\EHQHILWVDVDRIHOLJLEOHFRPSHQVDWLRQ  WR  WR 5HTXLUHGHPSOR\HHFRQWULEXWLRQUDWHV

 
5HTXLUHGHPSOR\HHFRVWVKDUH1&)$   
5HTXLUHGHPSOR\HHFRVWVKDUH1&)2   
5HTXLUHGHPSOR\HUFRQWULEXWLRQUDWHV    6DIHW\)LUH
0LVFHOODQHRXV3ODQ 6DIHW\3ODQ 7RWDO
$FWLY HHPSOR\HHV  
 
7UDQVIHUUHGDQGWHUPLQDWHGHPSOR\HHV    5HWLUHGHPSOR\HHVDQGEHQHILFLDULHV    7 RWDO    73 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('


PLVFHOODQHRXVHPSOR\HHV DQG 
IRU SXEOLF VDIHW\ HPSOR\HHV 7KH FRQWULEXWLRQ UHTXLUHPHQWV RI WKH SODQ PHPEHUV DUH HVWDEOLVKHG E\ 6WDWHVWDWXWHDQGWKHHPSOR\HUFRQWULEXWLRQUDWHLVHVWDEOLVKHGDQGPD\EHDPHQGHG E\&DO3(56)RUWKH\HDUHQGHG -XQHWKH&LW\¶VFXUUHQW\HDUSHQVLRQFRQWULEXWLRQVZHUH 
$FWXDULDO0HWKRGVDQG$VVXPSWLRQV8VHGWR'HWHUPLQH7RWDO3HQVLRQ/LDELOLW\ 
7KH-XQHYDOXDWLRQZDVUROOHGIRUZDUGWRGHWHUPLQHWKH-XQHWRWDOSHQVLRQOLDELOLW\EDVHGRQ WKHIROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV


$FWXDULDO&RVW0HWKRG (QWU\$JH1RUPDO&RVW0HWKRG
$FWXDULDO$VVXPSWLRQV
'LVFRXQWUDWH 

,QIODWLRQ 
6DODU\LQFUHDVHV 9DULHVE\HQWU\DJHDQGVHUYLFHV
0RUWDOLW\UDWHWDEOH 'HULYHGXVLQJ&DO3(56¶PHPEHUVKLSGDWDIRUDOOIXQGV 3RVWUHWLUHPHQWEHQHILWLQFUHDVH 7KHOHVVHURIFRQWUDFW&2/$RUXQWLOSXUFKDVLQJ SRZHU SURWHFWLRQ DOORZDQFH IORRU RQ SXUFKDVLQJ
SRZHUDSSOLHVWKHUHDIWHU

7KHPRUWDOLW\WDEOHXVHGZDVGHYHORSHGEDVHGRQ&DO3(56VSHFLILFGDWD7KHSUREDELOLWLHVRIPRUWDOLW\DUHEDVHG RQ WKH2021 CalPERS Experience Study and Review of Actuarial Assumptions  0RUWDOLW\ UDWHV LQFRUSRUDWH IXOO JHQHUDWLRQDOPRUWDOLW\LPSURYHPHQWXVLQJRI6FDOH03S XEOLVKHGE\WKH6RFLHW\RI$FWXDULHV)RUPRUH GHWDLOVRQWKLVWDEOHSOHDVHUHIHUWRWKHH[SHULHQFHVWXG \UHSRUWIURP1RYHPEHUWKDWFDQEHIRXQGRQ WKH&DO3(56ZHEVLWH

/RQJWHUP([SHFWHG5DWHRI5HWXUQ

7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJDEXLOGLQJEORFNPHWKRG LQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQ
H[SHFWHGUHWXUQVQHWRISHQVLRQSODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ 
DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV

,QGHWHUPLQLQJWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ&DO3(56WRRNLQWRDFFRXQWERWKVKRUWWHUPDQGORQJWHUP PDUNHW UHWXUQ H[SHFWDWLRQV 8VLQJ KLVWRULFDO UHWXUQV RI DOO RI WKH IXQGV¶ DVVHW FODVVHV H[SHFWHG FRPSRXQG

JHRPHWULF
UHWXUQVZHUHFDOFXODWHGRYHUWKHQH[W\HDUVXVLQ JDEXLOGLQJEORFNDSSURDFK7KHH[SHFWHGUDWHRI UHWXUQZDVWKHQDGMXVWHGWRDFFRXQWIRUDVVXPHGDGPLQLVWUDWLYH H[SHQVHVRI%DVLVSRLQWV7KHH[SHFWHGUHDO UDWHVRIUHWXUQE\DVVHWFODVVDUHDVIROORZV


$VVHW&ODVV

1HZ6WUDWHJLF 
$OORFDWLRQ
5HDO5HWXUQ
<HDUV

*OREDO(TXLW\  
*OREDO(TXLW\  
3ULYDWH(TXLW\  
7UHDVXU\  
0RUWJDJHEDFNHG6HFXULWLHV  
,QYHVWPHQW*UDGH&RUSRUDWHV  
+LJK<LHOG  
(PHUJLQJ0DUNHW'HEW  
3ULYDWH'HEW  
5HDO(VWDWH  
/LTXLGLW\  


$QH[SHFWHGLQIODWLRQRIXVHGIRUWKLVSHULRG

,Q WKH &DO3(56
$&)5 )L[HG ,QFRPH LV LQFOXGHG LQ *OREDO 'HEW
6HFXULWLHV
/LTXLGLW\ LV LQFOXGHG LQ 6KRUWWHUP ,QYHVWPHQWV
,QIODWLRQ $VVHWV
DUHLQFOXGHGLQERWK*OREDO(TXLW\6HFXULWLHVDQG*OREDO'HEW6HFXULWLHV 74 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('


'LVFRXQW5DWH

7KH GLVFRXQW UDWH XVHG WR PHDVXUH WKH WRWDO SHQVLRQ OLDELOLW\ ZDV   7KH SURMHFWLRQ RI FDVK IORZV XVHG WR
GHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDWFRQWULEXWLRQVIURPSOD QPHPEHUVZLOOEHPDGHDWWKHFXUUHQWPHPEHU FRQWULEXWLRQ UDWHV DQG WKDW FRQWULEXWLRQV IURP HPSOR\HUV ZLOO EH PDGH DW VWDWXWRULO\ UHTXLUHG UDWHV DFWXDULDOO\ GHWHUPLQHG%DVHGRQWKRVHDVVXPSWLRQVWKH3ODQ¶VILGXFLDU\QH WSRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWRPDNH DOOSURMHFWHGIXWXUHEHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUV7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQ SODQLQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDOSHQVLRQOLDELOLW\ 
$PRUWL]DWLRQRI'HIHUUHG2XWIORZVDQG'HIHUUHG,QIORZVRI5HVRXUFHV 
8QGHU *$6% 6WDWHPHQW 1R  JDLQV DQG ORVVHV UHODWHG WR FKDQJHV LQ WRWDO SHQVLRQ OLDELOLW\ DQG ILGXFLDU\ QHW SRVLWLRQDUHUHFRJQL]HGLQSHQVLRQH[SHQVHV\VWHPDWLFDOO\RYHUWLPH 
7KHILUVWDPRUWL]HGDPRXQWVDUHUHFRJQL]HGLQSHQVLRQH[SHQVHIRUWKH\HDUWKHJDLQRUORVVRFFXUV7KHUHPDLQLQJ DPRXQWVDUHFDWHJRUL]HGDVGHIHUUHGRXWIORZVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVDQGDUHWREH UHFRJQL]HGLQIXWXUHSHQVLRQH[SHQVH

7KHDPRUWL]DWLRQSHULRGGLIIHUVGHSHQGLQJRQWKHVRXUFHRIWKHJDLQRUORVV 

1HWGLIIHUHQFHEHWZHHQSURMHFWHG \HDUVWUDLJKWOLQHDPRUWL]DW LRQ  DQGDFWXDOHDUQLQJVRQSHQVLRQ
 SODQLQYHVWPHQWV 
$OORWKHUDPRXQWV 6WUDLJKWOLQH DPRUWL]DWLRQ RYHU WKH H[SHFWHG DYHUDJH UHPDLQLQJ VHUYLFH OLIHWLPH
($56/
 RI DOO PHPEHUV WKDW DUH SURYLGHG ZLWK
EHQHILWV
DFWLYHLQDFWLYHDQGUHWLUHG
DVRIWKHEHJLQQLQJRI W KH 
PHDVXUHPHQWSHULRG

&KDQJHVLQ1HW3HQVLRQ/LDELOLW\

7KHFKDQJHVLQWKH1HW3HQVLRQ/LDELOLW\DVRI-XQHIRUHDFK3ODQIROORZV 




7RW DO 3 HQV LRQ
/LDELOLW\
3ODQ)LGXFLDU\
1HW3RVLWLRQ
1HW3HQVLRQ
/LDELOLW\
%DODQFHDW-XQH
9DOXDWLRQ'DWH
  


  
 
&KDQJHVLQWKH\HDU

6HUY LFHFRVW      ,QWHUHVWRQWKHWRWDOSHQVLRQOLDELOLWLHV    &KDQJHVLQEHQHILWWHUPV    &KDQJHVLQDVVXPSWLRQV    'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH    

%HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUVFRQWULEXWLRQV  




 
&RQWULEXWLRQVHPSOR\HU 




&RQWULEXWLRQVHPSOR\HH   



1HWLQY HVWPHQWLQFRPH  




$GPLQLVWUDWLY HH[SHQVHV 

 
1HW&KDQJHV 
 
 
%DODQFHDW-XQH
0HDVXUHPHQW'DWH

 


 

0LV FHOODQHRXV 3ODQ
75 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('




6HQVLWLYLW\RIWKH1HW 3HQVLRQ/LDELOLW\WR&KDQJHVLQWKH'LVF RXQW5DWH7KHIROORZLQJSUHVHQWVWKHQHWSHQVLRQ OLDELOLW\RIWKH&LW\RI1DSDIRUHDFK3ODQFDOFXODWHGXVLQJW KHGLVFRXQWUDWHIRUHDFK3ODQDVZHOODVZKDW1 DSD¶V QHW SHQVLRQ OLDELOLW\ ZRXOG EH LI LW ZHUH FDOFXODWHG XVLQJ D GL VFRXQW UDWH WKDW LV  SHUFHQWDJH SRLQW ORZHU RU   SHUFHQWDJHSRLQWKLJKHUWKDQWKHFXUUHQWUDWH




3HQVLRQ 3ODQ )LGXFLDU\ 1HW 3RVLWLRQ  'HWDLOHG LQIRUPDWLRQ DERXW HDFK SHQVLRQ SODQ¶V ILGXFLDU\ QHW SRVLWLRQ LV DYDLODEOHLQWKHVHSDUDWHO\LVVXHG&DO3(56ILQDQFLDOUHSRUWV 
( 3HQVLRQ([SHQVHDQG'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV5HODWHGWR3HQVLRQV 
)RUWKH\HDUHQGHG-XQHWKH&LW\RI1DSDUHFRJQL]HGSHQVLRQH[SHQVHRI $W-XQH
WKH &LW\ UHSRUWHG GHIHUUHG RXWIORZV RI UHVRXUFHV DQG GHIHUUHG LQIORZV RI UHVRXUFHV UHODWHG WR SHQVLRQV IURP WKH IROORZLQJVRXUFHV



7RW DO 3 HQV LRQ
/LDELOLW\
3ODQ)LGXFLDU\
1HW3RVLWLRQ
1HW3HQVLRQ
/LDELOLW\
%DODQFHDW-XQH
9DOXDWLRQ'DWH
  

  

&KDQJHVLQWKH\HDU

6HUY LFHFRVW      ,QWHUHVWRQWKHWRWDOSHQVLRQOLDELOLWLHV 
  

&KDQJHVLQEHQHILWWHUPV    &KDQJHVLQDVVXPSWLRQV    'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH    %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUVFRQWULEXWLRQV  


 
&RQWULEXWLRQVHPSOR\HU   



&RQWULEXWLRQVHPSOR\HH   

1HWLQY HVWPHQWLQFRPH  






$GPLQLVWUDWLY HH[SHQVHV 

 
1HW&KDQJHV 
 



 


%DODQFHDW-XQH
0HDVXUHPHQW'DWH
 
 
6DIHW\3ODQ
'LVFRXQW5DWH


&XUUHQW'LVFRXQW
5DWH

'LVFRXQW5DWH


0LVFHOODQHRXV  
 

6DIHW\ 
  

7 RWDO 
  

3ODQ
V$JJUHJDWH1HW3HQVLRQ/LDELOLW\
$VVHW

'HIHUUHG2XWIORZVRI
5HVRXUFHV
'HIHUUHG,QIORZVRI
5HVRXUFHV
3HQVLRQFRQWULEXWLRQVPDGHVXEVHTXHQW
WRPHDVXUHPHQWGDWH 
  
'LIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDO
HDUQLQJVRQSHQVLRQSODQLQYHVWPHQWV 
  
&KDQJHVRIDVVXPSWLRQV 
   
'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDO
H[SHULHQFH 

 

7RWDO 
 

0LVFHOODQHRXV3ODQ
76 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('






7KHDPRXQWRIUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWRFRQWULEXWLRQVVXEVHTXHQWWRWKH PHDVXUHPHQWGDWHZLOOEHUHFRJQL]HGDVDUHGXFWLRQRIWKHQHWS HQVLRQOLDELOLW\LQWKH\HDUHQGHG-XQH $PRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHG LQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVZLOOEH UHFRJQL]HGDVSHQVLRQH[SHQVHDVIROORZV




) 'HILQHG&RQWULEXWLRQ3ODQV

7KH&LW\DOVRSURYLGHVGHILQHGFRQWULEXWLRQUHWLUHPHQWEHQHILWVWKRXJK,56VHFWLRQ D
DQGSODQV7KHSODQV
DUH DGPLQLVWHUHG E\ WKH 0LVVLRQ 6TXDUH DQG 1DWLRQZLGH 5HWLUHPHQW 6ROXWLRQV 3ODQ SURYLVLRQV DQG FRQWULEXWLRQ UHTXLUHPHQWVDUHHVWDEOLVKHGDQGPD\EHDPHQGHGE\&LW\&RXQFLOWKURXJKQHJRWLDWLRQZLWKHPSOR\HHDVVRFLDWLRQV 7KH&LW\FRQWULEXWHVIURPWRSHUPRQWKWRLWVQRQVDIH W\DQGPDQDJHPHQWHPSOR\HHVGHSHQGLQJXSRQ HPSOR\HH JURXS ,Q DGGLWLRQ WKH &LW\ FRQWULEXWHV  SHU PRQWK IRU H[HFXWLYHV DQG DQ DGGLWLRQDO  SHU PRQWK IRU &LW\ 0DQDJHU &LW\ &OHUN &LW\$WWRUQH\DQG$VVLVWDQW &LW\ 0DQDJHU UHFHLYH DQ DGGLWLRQDO  SHU PRQWK'XULQJWKH\HDUHQGHG-XQHWKH&LW\IXOO\IXQG HGLWVUHTXLUHGFRQWULEXWLRQVRI WRWKHVH
SODQV
'HIHUUHG2XWIORZVRI
5HVRXUFHV
'HIHUUHG,QIORZVRI
5HVRXUFHV
3HQVLRQFRQWULEXWLRQVPDGHVXEVHTXHQW
WRPHDVXUHPHQWGDWH 
   
'LIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDO
HDUQLQJVRQSHQVLRQSODQLQYHVWPHQWV
 
&KDQJHVRIDVVXPSWLRQV 
 
'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDO
H[SHULHQFH 


7RW DO 


6DIHW\3ODQ
'HIHUUHG2XWIORZVRI
5HVRXUFHV
'HIHUUHG,QIORZVRI
5HVRXUFHV
3HQVLRQFRQWULEXWLRQVPDGHVXEVHTXHQW
WRPHDVXUHPHQWGDWH   'LIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDO
HDUQLQJVRQSHQVLRQSODQLQYHVWPHQWV   &KDQJHVRIDVVXPSWLRQV   'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDO
H[SHULHQFH




7RWDO 




7RWDO
<HDU(QGHG-XQH 0LVFHOODQHRXV3ODQ 6DIHW\3ODQ 7RWDO  
 
 

 
         
 

7KHUHDIWHU    7RWDO 
 

 
'HIHUUHG2XWIORZV
,QIORZV
RI5HVRXUFHV
77 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 (03/2<((5(7,5(0(176<67(0
&217,18('


* 2WKHU5HWLUHPHQW6\VWHPV

7KH 2PQLEXV %XGJHW 5HFRQFLOLDWLRQ$FW RI 


2%5$
 PDQGDWHV WKDW SXEOLF VHFWRU HPSOR\HHV ZKR DUH QRW PHPEHUVRIWKHLUHPSOR\HU¶VH[LVWLQJUHWLUHPHQWV\VWHPDVRI-DQXDU\

EHFRYHUHGE\HLWKHU6RFLDO6HFXULW\
RUDQDOWHUQDWLYHSODQ7KH&LW\FRQWUDFWVZLWKWKH3XEOLF$JHQF\5HWLUHPHQW6\VWHPV 3$56
WRPDLQWDLQDGHILQHG
FRQWULEXWLRQ SODQWKDW FRYHUV SDUWWLPHVHDVRQDODQGWHPSRUDU\ HPSOR\HHV (PSOR\HU OLDELOLWLHV DUH OLPLWHGWRWKH DPRXQWRIFXUUHQWFRQWULEXWLRQV

8QGHU3$56HPSOR\HHVFRQWULEXWHDQGWKH&LW\FRQWULEXWHVRIWKHHPSOR\HH¶VVDODU\HDFKSD\SHULRG )RU WKH ILVFDO \HDU HQGHG -XQH   WRWDO FRQWULEXWLRQ RI ZHUH EDVHG RQ D WRWDO DPRXQW RI FRYHUHG FRPSHQVDWLRQRI

127(
 27+(53267(03/2<0(17%(1(),76
23(%


$ 3ODQ'HVFULSWLRQDQG(OLJLELOLW\

7KH &LW\ SDUWLFLSDWHV LQ WKH &DOLIRUQLD (PSOR\HU
V 5HWLUHH %HQHILW )XQG
&(5%7
 DQ DJHQW PXOWLSOHHPSOR\HU
GHILQHG EHQHILW KHDOWK FDUHSODQ ZKLFK SURYLGHV SRVWUHWLUHPHQW EHQHILWVWR UHWLUHG HPSOR\HHV LQ DFFRUGDQFHZLWK WKHYDULRXV0HPRUDQGXPVRI8QGHUVWDQGLQJDQGWKHLUGDWHRIKLUH6SRXVHVDQGGHSHQGHQWVDUHHOLJLEOHWRHQUROO %HQHILWVFRQWLQXHWRVXUYLYLQJVSRXVHVIRU3(0+&$RQO\ 
5HWLUHHVDUHHOLJLEOHIRUPHGLFDOEHQHILWVLIWKH\UHWLUHDWDJ HZLWK&LW\VHUYLFHUHTXLUHPHQWVWKDWYDU\E\KLUH GDWHDQGEDUJDLQLQJJURXS$UHWLUHHLVJHQHUDOO\HOLJLEOHIRUDIL[HGPRQWKO\SD\PHQWRUWKHQXPEHURISD\PHQWV LV EDVHGRQDFFUXHGVLFNGD\VDWWLPHRIUHWLUHPHQW

% (OLJLELOLW\

$VRI-XQHWKHEHQHILWWHUPVFRYHUHGWKHIROORZLQJHPSOR\HHV 



& &RQWULEXWLRQV

7KHSODQDQGLWVFRQWULEXWLRQUHTXLUHPHQWVDUHHVWDEOLVKHGE\PHPRUDQGXPVRIXQGHUVWDQGLQJZLWKWKHDSSOLFDEOH HPSOR\HHEDUJDLQLQJXQLWVDQGPD\EH DPHQGHGE\DJUHHPHQWVEHWZ HHQWKH&LW\DQGWKHEDUJDLQLQJXQLWV7KH DQQXDOFRQWULEXWLRQLVEDVHGRQWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ(PSOR\HHVDUHQRWUHTXLUHGWRFRQWULEXWH WR WKH SODQ &RQWULEXWLRQV UHFRJQL]HG E\ WKH SODQ IURP WKH HPSOR\HU IRU WKH \HDU HQGHG -XQH   ZHUH 

' 1HW23(%/LDELOLW\
7KH &LW\
V QHW 23(% OLDELOLW\ IRU WKH KHDOWK FDUH SODQ ZDV PHDVXUHG DV WKH WRWDO 23(% OLDELOLW\ OHVV WKH 23(% SODQ¶VILGXFLDU\QHWSRVLWLRQ7KHQHW23(%OLDELOLW\RIWKHSODQZDVPHDVXUHGDVRI-XQHXVLQJDQDQQXDO DFWXDULDOYDOXDWLRQDVRI-XQH$VXPPDU\RISULQFLSDO DVVXPSWLRQVDQGPHWKRGVXVHGWRGHWHUPLQHWKH QHWSHQVLRQOLDELOLW\LVVKRZQEHORZ




7 RWDO 
,QDFWLYH HPSOR\HHV VSRXVHV RU EHQHILFLDULHV
FXUUHQWO\UHFHLYLQJEHQHILWSD\PHQWV
$FWLYHSODQPHPEHUV
78 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('


$FWXDULDO$VVXPSWLRQV7KHWRWDO23(%OLDELOLW\LQWKH-XQHDFWXDULDOYDOXDWLRQZDVGHWHUPLQHGXVLQJ WKH IROORZLQJDFWXDULDODVVXPSWLRQVDSSOLHGWRDOOSHULRGVLQFOXGHGLQWKHPHDVXUHPHQWXQOHVVRWKHUZLVHVSHFLILHG 








9DOXDWLRQ'DWH -XQH
0HDVXUHPHQW'DWH -XQH
$FWXDULDO&RVW0HWKRG (QWU\DJHQRUPDOOHYHOSHUFHQWRISD\ $PRUWL]DWLRQ0HWKRG &ORVHGSHULRGOHYHOSHUFHQWRISD\ $PRUWL]DWLRQ3HULRG \HDUV
$FWXDULDO$VVXPSWLRQV

'LVFRXQW5DWH ([SHFWHGORQJWHUPUDWHRIUHWXUQRQ&LW\DVVWHV XVLQJVWUDWHJ\ZLWKLQ&(5%7
0RUWDOLW\ 'HULYHGXVLQJ&DO3(560HPEHUVKLS'DWDIRUDOOIXQGV 7HUPLQDWLRQ 'HULYHGXVLQJ&DO3(560HPEHUVKLS'DWDIRUDOOIXQGV 'LVDELOLW\ 'HULYHGXVLQJ&DO3(560HPEHUVKLS'DWDIRUDOOIXQGV 5HWLUHPHQW 'HULYHGXVLQJ&DO3(560HPEHUVKLS'DWDIRUDOOIXQGV 3UHPLXPV 3UHPLXPVXVHGWRGHYHORSDJHGFODLPV
*URXSLQJ (PSOR\HH 7ZR3DUW\
3UH0HGLFDUH3ODQV  
0HGLFDUH3ODQV  
$QQXDO3HU&DSLWDO&ODLPV&RVW 'HYHORSHG XVLQJ &DO3(56 H[SHULHQFH WR FDOFXODWH DJHUHODWHG ULVN VFRUHV EXW XVLQJ WKH FLW\

V DFWXDO
SUHPLXPV IRU DOO RWKHU SXUSRVH $VVXPHG DQQXDO SHU FDSLWD FODLPVFRVWVIROORZ

$JH 0DOHV )HPDOHV
 

 
  
  
79 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('






'HYHORSHG EDVHG RQ SUHPLXPV IRU WKH &LW\
V HQUROOPHQW E\
SODQ IDPLO\ GHPRJUDSKLFV IURP &DO3(56 SODQV DQG ULVN
VFRUHV
ERWK+02DQG332
IRUWKH&DO3(56SRSXODWLRQ
$JLQJRU0RUELGLW\)DFWRUV %DVHG RQ DFWXDO &DO3(56 +02 DQG 332 SRSXODWL RQ GDWD
3DUWLFLSDQW&RQWULEXWLRQV %DVHGRQVHUY LFHDWUHWLUHPHQWDQGHPS OR\HHJURXS 6DODU\,QFUHDVHV $JJUHJDWH3D\UROO*URZWK

,QGLY LGXDO 6DODU\ ,QFUHDVHV
 &DO3(56 0HULW 6DODU\
,QFUHDVHV
,QIODWLRQ5DWH 
0DULWDO6WDWXV &XUUHQW5HWLUHHV
$FWXDOVSRXVHFRY HUDJHLVXVHG 
)XWXUH5HWLUHHV
DVVXPHGWREHPDUULHG
6SRXVH*HQGHU &XUUHQW )XWXUH 5HWLUHHV
$VVXPHV VSRXVH RI RSSRVLWH
JHQGHU
6SRXVH$JH'LIIHUHQFH &XUUHQWUHWLUHHV
DFWXDOVSRXVHDJHLVXVH G
)XWXUH UHWLUHHV
DVVXPHV PDOHV DUH WKUHH \HDUV ROGHU WKDQ
IHPDOHV
,PSOLFLW6XEVLG\ 132$DQG308RQO\
3DUWLFLSDWLRQ &XUUHQW UHWLUHHV

DVVXPH FXUUHQW HOHFWLRQV FRQWLQXH XQWL O
GHFUHPHQW
)XWXUHUHWLUHHV
HOHFWLRQDVVXPSWLRQVVXPPDUL]HGEHORZ
$Y HUDJH3HU&DSLWD&RVWIRU
,PSOLFLW6XEVLG\&DOFXODWLRQ
%HQHILW7 \SH
6HUY LFH
5HWLUHPHQW
'LVDELOLW\
5HWLUHPHQW
3ROLFH&KLHI  
(OHFWHG([HFXWLY H  
2WKHU  
7UHQG5DWHV 0HGLFDO /RQJ7HUP 7UHQGV IURP 6RFLHW\ RI $FWXDULHV /RQJ7HUP+HDOWKFDUH&RVW7UHQGV0RGHOY BIXVLQJ EDVHOLQH DVVXPSWLRQV $SSOLHG WR ERWK FODLPV DQG
SUHPLXPV
3(0+&$,QIRUPDWLRQ 7 KH132$DQG308DUHWKHRQO\JURXSVWKDWSDUWLFLSDWHLQ &DO3(56 SODQV 7KH 3(0+&$ PLQLPXP LV DVVXPHG WR
WUHQG DW  SHU \HDU 3(0+&$ DGPLQLVWUDWLRQ IHHV QRW
PDWHULDOWRY DOXDWLRQDQGH[FOXGHG
80 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('


( &KDQJHVLQWKH1HW23(%/LDELOLW\



6HQVLWLYLW\RIWKHWRWDODQGQHW23(%/LDELOLW\WR&KDQJHVLQWKH'LVFRXQW5DWH7KHWRWDODQGQHW23(%OLDELOLW\ RI WKH&LW\DVZHOODVZKDWWKH&LW\
VWRWDODQGQHW23(%OLDELOLW\ZRXOGEHLIWKH\ZHUHFDOFXODWHGXVLQJDGLVFRXQW UDWH WKDWLVRQHSHUFHQWDJHSRLQWORZHU

RURQHSHUFHQWDJHSRLQWKLJKHU

IROORZV




6HQVLWLYLW\RIWKH1HW23(%/LDELOLW\WR&KDQJHVLQWKH+HDOWKFDUH&RVW7UHQG5DWHV7KHWRWDO23(%OLDELOLW\RI WKH &LW\DVZHOODVZKDWWKH&LW\
VWRWDO23(%OLDELOLW\ZRXOGEH LILWZHUHFDOFXODWHGXVLQJKHDOWKFDUHFRVWWUHQG UDWHV WKDWDUHRQHSHUFHQWDJHSRLQWORZHU

RURQHSHUFHQWDJHS RLQWKLJKHU

WKDQFXUUHQWKHDOWKFDUH FRVW
WUHQGUDWHVIROORZV



7RW DO 23 ( % 
/LDELOLW\
3ODQ)LGXFLDU\
1HW3RVLWLRQ
1HW23(%
/LDELOLW\
%DODQFHDW-XQH 

   
&KDQJHV5HFRJQL]HGIRUWKH0HDVXUHPHQW3HULRG

6HUYLFH&RVW      ,QWHUHVWRQWKHWRWDO23(%OLDELOLW\ 
    

'LIIHUHQFHEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH



  




&KDQJHVLQDVVXPSWLRQV

  


&RQWULEXWLRQIURPWKHHPSOR\HU&LW\
VFRQWULEXWLRQ   


&RQWULEXWLRQIURPWKHHPSOR\HULPSOLFLWVXEVLG\    



1HWLQYHVWPHQWLQFRPH   




$GPLQLVWUDWLY HH[SHQVHV  

  
,PSOLFLWUDWHVXEVLG\IXOILOOHG





  
%HQHILWSD\PHQWV



  
1HW&KDQJHVGXULQJ-XO\WR-XQH

 
 


%DODQFHDW-XQH   
  
'LVFRXQW5DWH

&XUUHQW'LVFRXQW
5DWH
'LVFRXQW5DWH


   

3ODQ
V1HW23(%/LDELOLW\

+HDOWKFDUH&RVW
7UHQG5DWH 

   
 
3ODQ
V1HW23(%/LDELOLW\
81 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('


) 23(%([SHQVHDQG'HIHUUHG,QIORZVDQG2XWIORZVRI5HVRXUFHV 5HODWHGWR23(% 
)RUWKHUHSRUW\HDUHQGHG-XQHWKH&LW\UHFRJQL]HGDQ23(%H[SHQVHRI$W-XQHWKH &LW\UHSRUWHGGHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWR23(%IURPWKHIROORZLQJ

VRXUFHV




7KH DPRXQWRI 
UHSRUWHG DV GHIHUUHG RXWIORZV RI UHVRXUFHVUHODWHG WRFRQWULEXWLRQV VXEVHTXHQW WRWKH PHDVXUHPHQW GDWH ZLOO EH UHFRJQL]HG DV D UHGXFWLRQ RI WKH QHW 2 3(% OLDELOLW\ LQ WKH \HDU HQGHG -XQH $PRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUF HVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWR 23(%ZLOOEH UHFRJQL]HGLQ23(%H[SHQVHDVIROORZV



'HIHUUHG2XWIORZV
RI5HVRXUFHV
'HIHUUHG,QIORZV
RI5HVRXUFHV
&RQWULEXWLRQVPDGHDIWHUPHDVXUHPHQWGDWH 
   
'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH  

&KDQJHVLQDVVXPSWLRQV  


1HWGLIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDOHDUQLQJV
RI23(%3ODQLQY HVWPHQWV     


<HDU(QGHG
-XQH $PRXQW







 
 



7KHUHDIWHU



7RWDO


82 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('


* 6XEVWDQWLYH3ODQ


$OO7LHU V
(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH   \HDUV &LW\ RI 1DSD 6HUYLFH WLPH DQG E\ HLWKHU VHUYLFH UHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPH
6SRXVHFRYHUDJH 6SRXVHVDQGGHSHQGHQWVDUHHOLJLEOHWRHQUROOEXWWKHUHWLUHHSD\VRIWKHFRVW 0HGLFDOSODQFKRLFHV 7KH UHWLUHH PD\ FKRRVH D &LW\ SODQ ZLWK HLWKHU .DLVHU 3HUPDQHQWH RU :HVWHUQ +HDOWK $IWHU0HGLFDUHDJHSODQVDUHRQO\DYDLODEOHWKURXJK.DLVHU3HUPDQHQWH &RUHEHQHILW $OOUHWLUHHVPD\FRYHUWWKHLUXQXVHGVLFNOHDYHWR &DO3(56VHUYLFHWLPH ,IWKHUHWLUHHPHHWVHOLJLELOLW\WKH\UHFHLYHXSWRSHUPRQWK ,I WKH UHWLUHH ZDV KLUHG EHIRUH -XO\  
 WKH &LW\ ZLOO DOVR SD\ OLIH LQVX UDQFH SUHPLXPV
XSWRXQWLOWKHUHWLUHHLVDJH
7LHU+LUHGEHIRUH-XO\

(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH   \HDUV &LW\ RI 1DSD 6HUYLFH WLPH DQG E\ HLWKHU VHUYLFH UHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPH
6SRXVHFRYHUDJH 6SRXVHVDQGGHSHQGHQWVDUHHOLJLEOHWRHQUROOEXWWKHUHWLUHHSD\VRIWKHFRVW 0HGLFDOSODQFKRLFHV 7KH UHWLUHH PD\ FKRRVH D &LW\ SODQ ZLWK HLWKHU .DLVHU 3HUPDQHQWH RU :HVWHUQ +HDOWK $IWHU0HGLFDUHDJHSODQVDUHRQO\DYDLODEOHWKURXJK.DLVHU3HUPDQHQWH &RUHEHQHILW $OOUHWLUHHVPD\FRYHUWWKHLUXQXVHGVLFNOHDYHWR &DO3(56VHUYLFHWLPH ,IWKHUHWLUHHPHHWVHOLJLELOLW\WKH\UHFHLYHXSWRSHUPRQWK ,I WKH UHWLUHH ZDV KLUHG EHIRUH -XO\  
 WKH &LW\ ZLOO DOVR SD\ OLIH LQVX UDQFH SUHPLXPV
XSWRXQWLOWKHUHWLUHHLVDJH
7LHU+LUHGDIWHU-XO\

(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH   \HDUV &LW\ RI 1DSD 6HUYLFH WLPH DQG E\ HLWKHU VHUYLFH UHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPH
&RUHEHQHILW $OOUHWLUHHVPD\FRYHUWWKHLUXQXVHGVLFNOHDYHWR &DO3(56VHUYLFHWLPH ,IWKHUHWLUHHPHHWVHOLJLELOLW\WKH\UHFHLYHXSWRSHUPRQWK ,I WKH UHWLUHH ZDV KLUHG EHIRUH -XO\  
 WKH &LW\ ZLOO DOVR SD\ OLIH LQVX UDQFH SUHPLXPV
XSWRXQWLOWKHUHWLUHHLVDJH
7LHU+LUHGDIWHU-XO\

(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH   \HDUV &LW\ RI 1DSD 6HUYLFH WLPH DQG E\ HLWKHU VHUYLFH UHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPH
6SRXVHFRYHUDJH 6SRXVHVDQGGHSHQGHQWVDUHHOLJLEOHWRHQUROOEXWWKHUHWLUHHSD\VRIWKHFRVW 0HGLFDOSODQFKRLFHV 7KH UHWLUHH PD\ FKRRVH D &LW\ SODQ ZLWK HLWKHU .DLVHU 3HUPDQHQWH RU :HVWHUQ +HDOWK $IWHU0HGLFDUHDJHSODQVDUHRQO\DYDLODEOHWKURXJK.DLVHU3HUPDQHQWH &RUHEHQHILW $OOUHWLUHHVPD\FRYHUWWKHLUXQXVHGVLFNOHDYHWR &DO3(56VHUYLFHWLPH ,IWKHUHWLUHHPHHWVHOLJLELOLW\WKH\UHFHLYHXSWRSHUPRQWK 3ROLFH&KLHI2QO\
(OLJLELOLW\ +LUHG EHWZHHQ -XO\  
 DQG -XO\  
 308 PHPEHU EHIRUH - XO\   DQG
HLWKHUVHUYLFHUHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV &RUHEHQHILW 7KH &LW\ FRQWULEXWHV WKH VLQJOH SDUW\ UHWLUHH PRQWKO\ SUHPL XP DW WKH .DLVHU KHDOWK LQVXUDQFHUDWH
$GPLQLVWUDWLYH0DQD
JHULDODQG3URIHVVLRQDO(PSOR\HHV
1DSD&LW\(PSOR\HH
V$VVRFLDWLRQ
([HFXWLYHV'HSDUWPHQW+HDGV
83 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('




$OO7LHU V
(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH   \HDUV &LW\ RI 1DSD 6HUYLFH WLPH DQG E \ HLWKHU VHUY LFH UHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPH
6SRXVHFRYHUDJH 6SRXVHVDQGGHSHQGHQWVDUHHOLJLEOHWRHQUROOEXWWKHUHWLUHHSD\VRIWKHFRVW 0HGLFDOSODQFKRLFHV 7KH UHWLUHH PD\ FKRRVH D &LW\ SODQ ZLWK HLWKHU .DLVHU 3HUPDQHQWH RU :HVWHUQ +HDOWK $IWHU0HGLFDUHDJHSODQVDUHRQO\DYDLODEOHWKURXJK.DLVHU3HUPDQHQWH &RUHEHQHILW ,IWKHUHWLUHHPHHWVHOLJLELOLW\WKH\UHFHLYHXSW RSHUPRQWK 7LHU+LUHGDIWHU$XJXVW

(OLJLELOLW\ 7KH UHWLUHH PXVW RSW RXW RI +5$ LQ RUGHU WR UHFHLYH WKLV EHQHILW DQG DOVR DWWDLQ HLWKHU VHUYLFHUHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVELOLW\VWDWXV 'XUDWLRQRIFRYHUDJH 8QWLO WKH UHWLUHH UXQV RXW RI XQXVHG VLFN OHDYH FRQY HUWHG WR 5HWLUHH 6LQJOH 3DUW\ +HDOWK UHLPEXUVHPHQW
PD[LPXPRIPRQWKV

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
7LHU6XSSOHPHQWDO%HQHILW
(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH  DQG E\ HLWKHU VHUY LFH UHWLUHPHQW VWDWX V RU TXDOLI\LQJ GLVDELOLW\ UHWLUHPHQWVWDWXV
&RUHEHQHILW  RI VLFN OHDYH EDODQFH FRQYHUWHG WR +5$ DW  RI WKH UHWLU HH V KRXUO\ SD\ UDWH ,I
HPSOR\HHLVFXUUHQWO\RQDKRXUVVFKHGXOHWKHQVLFNOHDYHKRXUVDUHFRQYHUWHGEDFNWR W K H K R X U VD F F U X D OE H I R U HF R Q Y H U V L R QW R+ 5 $ 5 H P L Q L Q J  R IV L F NO H D Y HE DODQFH FRQYHUWHGWR&DO3(56VHUYLFHWLPH
(OHFWHG2IILFLDOV
1D
SD&LW\)LUHILJKWHUV$VVRFLDWLRQ
84 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('



$OO7LHU V
(OLJLELOLW\ 2Q DWWDLQPHQW RI DJH   \HDUV &LW\ RI 1DSD 6HUYLFH WLPH DQG E\ HLWKHU VHUYLFH UHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPHLIVXSSOHPHQWDOSD\PHQWV
6SRXVHFRYHUDJH 6SRXVHVDQGGHSHQGHQWVDUHHOLJLEOHWRHQUROOEXWWKHUHWLUHHSD\VRIWKHFRVW 0HGLFDOSODQFKRLFHV 7KH UHWLUHH PD\ FKRRVH D &LW\ SODQ ZLWK HLWKHU .DLVHU 3HUPDQHQWH RU :HVWHUQ +HDOWK $IWHU0HGLFDUHDJHSODQVDUHRQO\DYDLODEOHWKURXJK.DLVHU3HUPDQHQWH &RUHEHQHILW ,I WKH UHWLUHH PHHWV HOLJLELOLW\ DQ LV QRW HOLJLEOH IRU +5$ WKH\ UHFHLYH XS WR  SHU PRQWK IRUUHWLUHH
VOLIHWLPH2SWLRQWRFRQYHUWXQXVHGVLFNOHDYHWRVHUYLFHFUHGLW ,I WKH UHWLUHH PHHWV HOLJLELOLW\ LG QRW HOLJLEOH IRU +5$ FRQYHUW XS WR  G D\V RI XQXVHG VLFN OHDYH LQWR VLQJOHSDUW KHDOWK LQVXUDQFH DW WKH UDWH RI RQH GD\ IRU RQH P RQWK V
SUHPLXP EDVHG RQ D  KRXU ZHHN 2WKHUZLVH WKH\ KDYH WKH RSWLRQ RI FRQYHUWLQJ XQXVHG VLFNOHDY HWRVHUY LFHFUHGLW
 RI VLFN OHDYH EDODQFH FRQYHUWHG WR +5$ DW  RI WKH UHWLUHH V KRXUO\ SD\ UDWH ,I
HPSOR\HH LV FXUUHQWO\ RQ D  KRXU VFKHGXOH WKHQ VLFN OHDYH KRXUV DUH FRQYHU WHG EDFN WR WKH  KRXU DFFUXDO EHIRUH FRQYHUVLRQ WR +5$ 5HPDLQLQJ  RI VLFN OHDYH ED ODQFH FRQYHUWHGWR&DO3(56VHUYLFHWLPH
7LHU(OLJLEOHIRUUHWLUHPHQWE\-XO\
(OLJLELOLW\ 2Q DWWDLQPHQW RI WKH VXP RI DJH DQG \HDUV RI VHUYLFH HTXDO WR DW O HDVW  E\ HLWKHU VHUYLFHUHWLUHPHQWVWDWXVRUTXDOLI\LQJGLVDELOLW\UHWLUHPHQWVWDWXV 'XUDWLRQRIFRYHUDJH 8QWLO WKH UHWLUHH UXQV RXW RI XQXVHG VLFN OHDYH FRQY HUWHG WR 5HWLUHH 6LQJOH 3DUW\ +HDOWK UHLPEXUVHPHQW
PD[LPXPRIPRQWKV

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
2WKHUZLVH WKH UHWLUHH PD\ FRQYHUW WKHLU XQXVHG VLFN OHDYH WR &DO3(56 VHUY LFH WLPH DQG RSWLQWR7LHUVXSSOHPHQWDOEHQHILWV
5HJDUGOHVV RI FKRLFH WKH UHWLUHH UHFHLYHV DW OHDVW WKH 3(0+&$ PLQLPXP IUR PW K H& L W \  DV ZHOO DV D FRQWULEXWLRQ IURP WKH 325$& WUXVW 7KH &LW\ RI 1DSD LV QRW D SDUW\ WR WKH DJUHHPHQWEHWZHHQWKH132$DQGWKH325$&WUXVW
7LHU
(OLJLELOLW\ 2Q DWWDLQPHQW RI  \HDUV RI DJH DQG E\ HLWKHU VHUYLFH UHWLUHPH QW VWDWXV RU TXDOLI\LQJ GLVDELOLW\UHWLUHPHQWVWDWXV
&RUHEHQHILW $OO UHWLUHHV PD\ FRQYHUW WKHLU XQXVHG VLFN OHDYH WR &DO3(56 V HUYLFH WLPH 7KH UHWLUHH UHFHLYHVDWOHDVWWKH3(0+&$PLQLPXPIURPWKH&LW\
1D
SD&LW\)LUH2IILFHUV
1DSD3ROLFH2IILFHUV$VVRFLDWLRQ
85 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 27+(53267(03/2<0(17%(1(),76
23(%

&217,18('




127(
 5,6.0$1$*(0(17

7KH&LW\LVH[SRVHGWRYDULRXVULVNVRIORVVUHODWHGWRWRUWV  WKHIWRIGDPDJHWRDQGGHVWUXFWLRQRIDVVHWV
HUURUV
DQG RPLVVLRQV
DQGQDWXUDOGLVDVWHUVIRUZKLFKWKH&LW\FDUULHV FRPPHUFLDOLQVXUDQFH7KH&LW\KDVHVWDEOLVKHGD OLPLWHG ULVNPDQDJHPHQWSURJUDPIRUWKHVHW\SHVRIULVNV3UHPL XPVDUHSDLGLQWRWKHLQWHUQDOVHUYLFHIXQGE\DOO RWKHUIXQGV DQGDUHDYDLODEOHWRSD\FODLPVFODLPUHVHUYHVDQGDGPLQLVWUDWLYHFRVWVRIWKHSURJUDP 
8QGHUWKLVSURJUDPWKH&LW\LVFRPSOHWHO\VHOILQVXUHGIRUXQHPSOR\PHQWLQVXUDQFHDQGLVVHOILQVXUHGIRUZRUNHUV¶ FRPSHQVDWLRQDQGJHQHUDOOLDELOLW\LQVXUDQFHFODLPVXSWRSHURFFXUUHQFHDQGSHURFFXUUHQFH UHVSHFWLYHO\ &ODLPV LQ H[FHVV RI WKHVH DPRXQWV DUH LQVXUHG WKURXJK &6$& ([FHVV ,QVXUDQFH$XWKRULW\ XS WR WKH VWDWXWRU\OLPLWDQGUHVSHFWLYHO\7KHUHZHUHQ RVHWWOHPHQWVWKDWH[FHHGHGFRYHUDJHIRUHDFKRI WKH SDVW WKUHH ILVFDO \HDUV ,Q DGGLWLRQ WKH &LW\ KDV DOVR SXW LQ SODFH DQ LQVXUDQFH SROLF\ FRYHULQJ WKHP IURP HDUWKTXDNHVLQWKH DPRXQWRISHURFFXUUHQFHZLWKDGHGXFWLEOHRI 7LHU+LUHGEHWZHHQ-XO\
DQG-XO\
DQGLQ%DUJDLQLQJ*URXSE\-XO\
(OLJLELOLW\ $WWDLQPHQWRIHLWKHUVHUYLFHUHWLUHPHQWVWDWXVRUTX DOLI\LQJGLVDELOLW\UHWLUHPHQW 'XUDWLRQRIFRYHUDJH 5HWLUHH
VOLIHWLPH
6SRXVHFRYHUDJH 6SRXVHV DQG GHSHQGHQWV DUH HOLJLEOH WR HQUROO EXW WKH UH WLUHH SD\V  RI WKH FRVW 6XUYLYLQJVSRXVHUHFHLYHV3(0+&$PLQLPXPLIDSSOLFDEOH 0HGLFDOSODQFKRLFHV 5HWLUHHPD\FKRRVHRQHRIDQ\PHGLFDOSODQSURYLGHGWKURXJK&DO3(56 &RUHEHQHILW 7KH &LW\ FRQWULEXWHV WKH VLQJOH SDUW\ UHWLUHH PRQWKO\ SUHPLXP DW WKH .DLVHU KHDOWK LQVXUDQFHUDWH
7LHU+LUHGDIWHU-XO\
DQGLQ%DUJDLQLQJ*URXSE\-XQH
(OLJLELOLW\ $WWDLQPHQWRIHLWKHUVHUYLFHUHWLUHPHQWVWDWXVRUE\ TXDOLI\LQJGLVDELOLW\UHWLUHPHQW 'XUDWLRQRIFRYHUDJH 8QWLO WKH UHWLUHH UXQV RXW RI XQXVHG VLFN OHDYH FRQY HUWHG WR 5HWLUHH 6LQJOH 3DUW\ +HDOWK

UHLPEXUVHPHQW
PD[LPXP RI  PRQWKV
 7KH UHWLUHH UHFHLYHV WKH 3(0+&$ PLQLPXP IRU
OLIHDIWHUWKHVLFNOHDYHUXQVRXW
&RUHEHQHILW 7 KH UHWLUHH PD\ PDNH D RQH WLPH LUUHY RFDEOH FKRLFH DW UHWLUH PHQW 7KH UHWLUHH PD\ FKRRVH WR FRQYHUW WKHLU XQXVHG VLFN OHDYH LQWR UHWLUHH VLQJOH SDUW\ KHDOWK UHLPEXUVPHQW ZKHUH  KRXUV LV HTXLYDOHQW WR  PRQWK RI SDLG VLQJOH SDUW\ UDWH PHGLFDO SUHPLXPV XS WR D PD[LXPRIPRQWKV
2WKHUZLVH WKH UHWLUHH PD\ FRQYHUW WKHLU XQXVHG VLFN OHDYH WR &DO3(56 VHUY LFH WLPH DQG RSW IRU D VXSSOHPHQWDO SD\PHQW E\ WKH &LW\ WRZDUG WKH PHPEHU

V UHWLUHH PHGL FDO
FRYHUDJHRISHUPRQWK
7KHUHWLUHHUHFHLYHVDWOHDVWWKH3(0+&$PLQLPXPIURPWKH&LW\ 7LHU0HPEHURI%DUJDLQLQJ*URXSDVRI-XQHRUSURPRWHGIURP132$RQRUDIWHU-XQH (OLJLELOLW\ $WWDLQPHQWRIHLWKHUVHUYLFHUHWLUHPHQWVWDWXVRUE\ TXDOLI\LQJGLVDELOLW\UHWLUHPHQW &RUHEHQHILW 7 KH UHWLUHH PD\ PDNH D RQH WLPH LUUHY RFDEOH FKRLFH DW UHWLUH PHQW 7KH UHWLUHH PD\ FKRRVH WR FRQYHUW WKHLU XQXVHG VLFN OHDYH LQWR UHWLUHH VLQJOH SDUW\ KHDOWK UHLPEXUVPHQW ZKHUH  KRXUV LV HTXLYDOHQW WR  PRQWK RI SDLG VLQJOH SDUW\ UDWH PHGLFDO SUHPLXPV XS WR D PD[LXPRIPRQWKV
2WKHUZLVH WKH UHWLUHH PD\ FRQYHUW WKHLU XQXVHG VLFN OHDYH WR &DO3(56 VHUY LFH WLPH DQG RSWIRU7LHUVXSSOHPHQWDOEHQHILWV
7KHUHWLUHHUHFHLYHVDWOHDVWWKH3(0+&$PLQLPXPIURPWKH&LW\ 7LHU
(OLJLELOLW\ 2Q DWWDLQPHQW RI  \HDUV RI DJH DQG E\ HLWKHU VHUYLFH UHWLUHPH QW VWDWXV RU TXDOLI\LQJ GLVDELOLW\UHWLUHPHQWVWDWXV
'XUDWLRQRIFRYHUDJH 5HWLUHH
V/LIHWLPH
&RUHEHQHILW $OOUHWLUHHVPD\FRQYHUWWKHLUXQXVHGVLFNOHDYHWR &DO3(56VHUY LFHWLPH ,IWKHUHWLUHHPHHWVHOLJLELOLW\WKH\UHFHLYHXSWRSHUPRQWK 3ROLFH0DQD
JHPHQW8QLW
86 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 5,6.0$1$*(0(17
&217,18('


7KH&LW\LVH[SRVHGWRYDULRXVULVNVRIORVVUHODWHGWRWRUW WKHIWRIGDPDJHWRDQGGHVWUXFWLRQRIDVVHWV
HUURUVDQG

RPLVVLRQV
DQGQDWXUDOGLVDVWHUVIRUZKLFKWKH&LW\FDUULHVFRPPHUFLDOLQVXUDQFH7KH&LW\KDVHVWDEOLVKHGDOLPLWHG ULVNPDQDJHPHQWSURJUDPIRUWKHVHW\SHVRIULVNV3UHPLXPVDUH SDLGLQWRWKHLQWHUQDOVHUYLFHIXQGE\DOORWKHU IXQGVDQGDUHDYDLODEOHWRSD\FODLPVFODLPUHVHUYHVDQGDGPLQLVWUDWLYHFRVWVRIWKHSURJUDP 
8QGHUWKLVSURJUDPWKH&LW\LVFRPSOHWHO\VHOILQVXUHGIRUXQHPSOR\PHQWLQVXUDQFHDQGLVVHOILQVXUHGIRUZRUNHUV 
FRPSHQVDWLRQDQGJHQHUDOOLDELOLW\LQVXUDQFHFODLPVXSWRSHURFFXUUHQFHDQGSHURFFXUUHQFH UHVSHFWLYHO\&ODLPVLQH[FHVVRIWKHVHDPRXQWVDUHLQVXUHGWKU RXJK&6$&([FHVV,QVXUDQFH$XWKRULW\XSWRWKH VWDWXWRU\OLPLWDQGUHVSHFWLYHO\7KHUHZHUHQRVH WWOHPHQWVWKDWH[FHHGHGFRYHUDJHIRUHDFKRIWKH SDVWWKUHHILVFDO\HDUV,QDGGLWLRQWKH&LW\KDVDOVRSXWLQSODFHDQLQVXUDQFHSROLF\FRYHULQJWKHPIURPHDUWKTXDNHV LQWKHDPRXQWRISHURFFXUUHQFHZLWKDGHGXFWLEOHRI 
7KH&LW\KDVUHWDLQHGDQLQGHSHQGHQWDJHQF\WRSHUIRUPDQGDQDO \VLVRIWKH&LW\ VSRWHQWLDOOLDELOLW\IRUWKH&LW\
V
VHOILQVXUHGSRUWLRQVRIWKHJHQHUDOOLDELOLW\DQGZRUNHUV FRPSHQVDWLRQSURJUDPV7KHDPRXQWUHFRUGHGDVDOLDELOLW\ UHSUHVHQWVWKHVSHFLILFUHVHUYHVIRULQGLYLGXDONQRZQFODLPVRU ODZVXLWVQRWFRYHUHGXQGHUWKHJHQHUDOOLDELOLW\RU WKHZRUNHUV
FRPSHQVDWLRQLQVXUDQFHSURJUDPDQGHVWLPDWHVIRULQFXUUHGEXWQRWUHSRUWHGFODLPV7KHDFWXDULDO DQDO\VLVXVHVDUDWHRIIRUJHQHUDOOLDELOLW\DQGZRUNHUV F RPSHQVDWLRQWRGLVFRXQWIXWXUHLQYHVWPHQWHDUQLQJV 7KHFODLPVOLDELOLW\KDVEHHQUHFRUGHGDVH[SHFWHG

%HORZLVDUHFRQFLOLDWLRQRIFKDQJHVLQWKHDJJUHJDWHOLDELOLWLHVIRUFODLPVIRUWKHILVFDO\HDUVEHJLQQLQJDQGHQGLQJ -XQHDQG




127(
 -2,1732:(56$*5((0(17

2Q0DUFK

WKH&LW\RI9 DOOHMRDQGWKH&RXQW\RI1DSDIRUPHGWKH6RXWK1DSD:DVWH0DQDJHPHQW $XWKRULW\

WKH ³$XWKRULW\´
 D VHSDUDWH OHJDO HQWLW\ IRU WKH SXUSRVH RI FROOHFWLYHO\ PDQDJLQJ WKH ZDVWH GLVSRVDO QHHGV RI WKH FRPPXQLWLHVWKH\UHSUHVHQW7KH&LW\RI1DSDUHVROYHGWRMRLQWKH$XWKRULW\RQ0DUFK

,Q$XJXVW


WKH &LW\RI1DSDRIILFLDOO\EHFDPHDPHPEHURIWKH$XWKRULW\7 KH$XWKRULW\KDVSXUFKDVHGWKH$PHULFDQ&DQ\RQ /DQGILOO VLWHDQGDFFHSWHGUHVSRQVLELOLW\IRULWVFORVXUH6WDWHDQGIHGHUDOODZVDQGUHJXODWLRQVUHTXLUHWKH$XWKRULW\ WRSODFHD ILQDOFRYHURQWKLVODQGILOOVLWHDQGWRSHUIRUPFHU WDLQPDLQWHQDQFHDQGPRQLWRULQJIXQFWLRQVDWWKHVLWH IRU\HDUV DIWHUFORVXUH

7KH&LW\KDVQRRQJRLQJILQDQFLDOLQWHUHVWLQWKH$XWKRULW\&ORVXUHDQGUHODWHGFRVWVZLOOEHSDLGWKURXJKWLSSLQJIHHV DVVHVVHGE\WKH$XWKRULW\DWLWV:DVWH7UDQVIHU)DFLOLW\7KLV7UDQVIHU)DFLOLW\VHUYHVWKHZDVWHGLVSRVDOQHHGVRI WKH FRPPXQLWLHVUHSUHVHQWHGE\WKH $XWKRULW\7KHWLSSLQJIHHVDUHSDLGE\WKHFLWL]HQVRIWKHVHFRPPXQLWLHVWKURXJK UDWH DVVHVVPHQWVIRUZDVWHSLFNXSDQGGLVSRVDO

)LQDQFLDOLQIRUPDWLRQUHODWHGWRWKH$XWKRULW\FDQEHREWDLQHG IURPWKH6RXWK1DSD:DVWH0DQDJHPHQW$XWKRULW\ ORFDWHGLQ1DSD&DOLIRUQLD
<HDU
%HJLQQLQJRI
)LVFDO<HDU
/LDELOLW\
&XUUHQW<HDU
&ODLPVDQG
&KDQJHVLQ
(VWLPDWHV &ODLP3D\PHQWV
%DODQFHDW)LVFDO
<HDU(QG
'XH:LWKLQ2QH
<HDU
   



    

 
  
 
    
   
 
  
  
87 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &200,70(176$1'&217,1*(1&,(6

$ &RPPLWPHQWV

7KH&LW\XVHVDQHQFXPEUDQFHV\VWHPDVDQH[WHQVLRQRIQRUPDOE XGJHWDU\DFFRXQWLQJIRUJRYHUQPHQWDOIXQGV 8QGHUWKLVV\VWHPSXUFKDVHRUGHUVFRQWUDFWVDQGRWKHUFRPPLWPHQWVIRUWKHH[SHQGLWXUHRIPRQLHVDUHUHFRUGHG LQRUGHUWRHQFXPEHUWKDWSRUWLRQRIDSSOLFDEOHDSSURSULDWLRQV(QFXPEUDQFHVRXWVWDQGLQJDW\HDUHQGDUHUHFRUGHG DVDVVLJQHGIXQGEDODQFHLQWKH*HQHUDO)XQGVLQFHWKH\GRQRWFRQVWLWXWHH[SHQGLWXUHVRUOLDELOLWLHV5HVRXUFHVLQ RWKHU JRYHUQPHQWDO IXQGV DUH FODVVLILHG DV UHVWULFWHG DQG HQFXPEUDQFHV DUH LQFOXGHG LQ WKRVH UHVWULFWHG IXQG EDODQFHV 5HDSSURSULDWLRQV LQ WKH VXEVHTXHQW \HDU SURYLGH DXWKRULW\ WR FRPSOHWH WKHVH WUDQVDFWLRQV DV H[SHQGLWXUHV(QFXPEUDQFHVRXWVWDQGLQJLQJRYHUQPHQWDOIXQGVDVRI-XQHZHUHDVOLVWHGEHORZ 



% &ODLPVDQG/LWLJDWLRQ

7KH &LW\ LV LQYROYHG LQ VHYHUDO FODLPV DQG ODZVXLWV ,Q WKH RSLQLRQ RI WKH &LW\¶V PDQDJHPHQW LW LV XQOLNHO\ WKDW WKHVHFODLPVDQGODZVXLWVZLOOKDYHDPDWHULDODGYHUVHHIIHFWRQWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWV 
& )HGHUDODQG6WDWH*UDQWV

7KH &LW\ KDV UHFHLYHG IHGHUDO DQG VWDWH JUDQWV IRU VSHFLILF SXUSRVHV WKDW DUH VXEMHFW WR UHYLHZV E\ WKH JUDQWRU DJHQFLHV6XFKUHYLHZVFRXOGOHDGWRUHTXHVWVIRUUHLPEXUVHPHQWVWRWKHJUDQWRUDJHQF\IRUH[SHQGLWXUHVGLVDOORZHG XQGHUWKHWHUPVRIWKHJUDQW7KHDPRXQWLIDQ\RIH[SHQGLWXUHVWKDWPD\EHGLVDOORZHGE\WKHJUDQWLQJDJHQFLHV FDQQRWEHGHWHUPLQHGDWWKLVWLPHDOWKRXJKPDQDJHPHQWH[SHFWVVXFKDPRXQWVLIDQ\WREHLPPDWHULDO 
' 7D[6KDULQJ$JUHHPHQWV

7KH&LW\KDVHQWHUHGLQWRD6DOHV7D[5HYHQXH6KDULQJ$JUHHPHQWZLWK61&75$//&7KHDJUHHPHQW FDOOV IRU WKH &LW\ WR VKDUH ,QFUHPHQWDO 6DOHV 7D[ 5HYHQXH LQ H[FKDQJH IRU FDSLWDO LPSURYHPHQWV WR WKH FRPPRQ DUHD 3D\PHQWVZLOOEHPDGHWR7RZQ&HQWHU6KRSV//&LQDQDPRXQWQR WWRH[FHHGWKHOHVVHURIRU WKH DPRXQWRIFDSLWDOH[SHQGLWXUHVPDGHE\WKH'HYHORSHURQ&RPPRQ $UHD,PSURYHPHQWV,QFUHPHQWDO6DOHV 7D[ 5HYHQXHLVGHILQHGDVWKH6DOHV7D[JHQHUDWHGE\WKHVDOHRIWD[DEOHLWHPVZLWKLQWKHSURMHFWVLWHWKDWH[FHHGV WKH %DVH 6DOHV 7D[
GHILQHG DV WKH 6DOHV 7D[ UHFHLYHG E\ WKH &LW\ IRU WD[DEOH VDOHV ZLWKLQ WKH SURMHFW VLWH IRU WKH  PRQWK SHULRG HQGLQJ -XQH   DQG LQFUHDVHG E\  HDFK \HDU DIWHU )<  
 SD\PHQWV ZHUH
PDGH RQ WKLV DJUHHPHQW LQ ILVFDO \HDU  GXH WR WKH 6DOHV7D[ 5HYHQXH QRW H[FHHGLQJ WKH %DVH 6DOHV7D[ DPRXQW

( &RQVWUXFWLRQ&RQWUDFWV

7KH&LW\KDVDQXPEHURIPDWHULDOFRQVWUXFWLRQFRQWUDFWVWKDWDUHLQSURFHVVRUDUHLQSURGXFWLRQ7KHWRWDORIWKHVH FRQWUDFWVDVRI-XQHLV

) 1RUWK%D\$TXHGXFW

7KH &LW\ KDV D ZDWHU VXSSO\ FRQWUDFW ZLWK WKH 1DSD &RXQW\ )ORRG &RQWURO DQG :DWHU &RQVHUYDWLRQ 'LVWULFW

1&)&:&'
WKDWLVOLQNHGWRDPDVWHUFRQWUDFWEHWZHHQWKH1&)&:&'DQGWKH6WDWHRI&DOLIRUQLD'HSDUWPHQW RI :DWHU 5HVRXUFHV
':5
 8QGHU WKHVH FRQWUDFWV WKH 6WDWH RI &DOL IRUQLD EXLOW WKH 1RUWK %D\ $TXHGXFW DQG SHULSKHUDO LQIUDVWUXFWXUH DQG DOORFDWHG WKH FRVWV WR WKH EHQHILWLQJ PXQLFLSDOLWLHV7KH FRQWUDFW FDOOV IRU DQ DQQXDO SD\PHQWWKDWLQFOXGHVFDSLWDODQGRSHUDWLQJFRPSRQHQWVDVZHOODVDFKDUJHIRUZDWHUWKDWYDULHVZLGHO\HDFK\HDU EDVHG RQ WKH DPRXQW RI FRQVXPSWLRQ ZKLFK LV D IXQFWLRQ RI FOLPDWH DYDLODELOLW\ RI RWKHU ZDWHU VXSSOLHV DQG SXPSLQJ7KHFRQWUDFWLVQRQFDQFHODEOHDQGH[SLUHVLQWKH\HDU *RYHUQPHQWDO)XQGV
*HQHUDO)XQG  
2WKHU*RYHUQPHQWDO)XQGV 


7RWDO  
88 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 &200,70(176$1'&217,1*(1&,(6
&217,18('


7KHFRPSRQHQWVRIWKHSD\PHQWVDUHDVIROORZV



1. Capital Cost Component FRQWDLQVWKHFRQVHUYDWLRQDQGWUDQVSRUWDWLRQFDSLWDOFRVWFRPSRQHQWVIRUWKHXVH RI WKHLQIUDVWUXFWXUHDQGZDWHUULJKWVDQGUHODWHGGHEWREOLJDWLRQ

2. Conservation and transportation minimum Operation, Maintenance, Power & Replacement (OMP&R) components $GGLWLRQDOO\ WKHUH LV DQ REOLJDWLRQ WR SD\ DQ 203 5 FRPSRQHQ W EDVHG RQ WKH ZDWHU HQWLWOHPHQWZKLFKLVQRWGHSHQGHQWRQWKHTXDQWLW\RIZDWHUDFWXDOO\GHOLYHUHG

3. Transportation variable OMP&R component LVGHSHQGHQWXSRQWKHTXDQWLWLHVRIZDWHUDFWXDOO\GHOLYHUHG WRWKH &LW\

4. Delta Water Charge LVVSOLWLQWRWZRFRPSRQHQWV

D
DFDSLWDOSLHFHIRUWKHLQLWL DOFRQVHUYDWLRQIDFLOLWLHV DQG

E
DPLQLPXP203 5FRPSRQHQW
D 7KH FDSLWDO FRVW FRPSRQHQW RI WKH 'HOWD :DWHU &KDUJH EHFDPHDSSOLFDEOH LQ  DQG LV SDLG LQ WZR  VHPLDQQXDO LQVWDOOPHQWV GXH -DQXDU\  DQG -XO\  RI HDFK \HDU7KHVH SD\PHQWV DUH XVHG WR IXQGWKH LQLWLDO FRQVHUYDWLRQ IDFLOLWLHV DQG DUH SDUWLDOO\ RIIVHW E\ D UDWH PDQDJHPHQW FUHGLW SURYLGHG WR DJHQFLHV

LQFOXGLQJ 1&)&:&'
 ZKR KDYH H[HFXWHG WKH 0RQWHUH\$PHQGPHQW ZKLFK IRFXVHV RQ ZDWHU VKRUWDJH LVVXHV
E 7KHPLQLPXP203 5FRPSRQHQWRIWKH'HOWD:DWHU&KDUJHLVSDLGPRQWKO\LQHTXDOLQVWDOOPHQWV 
7KHWRWDOREOLJDWLRQRIWKH&LW\RI1DSD:DWHU)XQGIRUILVFDO\HDUZDV 
7KHWRWDOHVWLPDWHGREOLJDWLRQRIWKH&LW\RI1DSD:DWHU)XQGRYHUWKHQH[WILYH\HDUVDQGWKHUHDIWHUDUHSUHVHQWHG LQWKHWDEOHEHORZ




127(
 38%/,&±35,9$7(6(59,&(&21&(66,21$55$1*(0(17

'XULQJ WKH \HDU HQGHG -XQH   WKH &LW\ HQWHUHG LQWR DQ D JUHHPHQW ZLWK 1DSD *ROI &RXUVH //& XQGHU ZKLFK WKH FRPSDQ\ ZLOO RSHUDWH DQG FROOHFW XVHU IHHV IURP WKH 1DSD 0XQLFLSDO *ROI &RXUVH IRU WKH QH[W WHQ

\HDUV7KH FRPSDQ\ ZLOO SD\ WKH &LW\ LQVWDOOPHQW SD\PHQWV RYHU WKH FRXUVH RI WKH DUUDQJHPHQW  WKH
SUHVHQW YDOXH RI WKHVH LQVWDOOPHQWSD\PHQWVLVHVWLPDWHGWREH 7KHFRPSDQ\ZLOODOVRSD\WKH&LW\D SHUFHQWDJHRIWKHUHYHQXHVLW HDUQVIURPWKHRSHUDWLRQRIWKHJROIFRXUVH SHUFHQWDJHUHQWEDVHGRQWLHUVVHWIRUWK
LQ WKH DJUHHPHQW
 7KH FRPSDQ\ LV UHTXLUHG WR RSHUDWH DQG PDLQWDLQ WKH JROI FRXUVH LQ DFFRUGDQFH ZLWK WKH $JUHHPHQW7KH&LW\SODQVWRXVHWKHSURFHHGV IURPWKHLQVWDOOPHQWSD\PHQWVWRRIIVHWWKHGHILFLWQHWSRVLWLRQRIWKH JROIFRXUVHIXQGZLWKDQ\DGGLWLRQDOUHYHQXHVWR EHXVHGWRIXQGJROIFRXUVHLPSURYHPHQWV7KH&LW\UHSRUWVWKH JROI FRXUVH DQG UHODWHG HTXLSPHQW DV D FDSLWDO DVVHW ZLWKDFDUU\LQJDPRXQWRI DW-XQHDQG
UHSRUWVDUHFHLYDEOHDQGGHIHUUHGLQIORZRIUHVRXUFHVLQWKH DPRXQWRI DW-XQHSXUVXDQWWRWKH
VHUYLFHFRQFHVVLRQDUUDQJHPHQW
)LVFDO<HDU
(VWLPDWHG7RWDO
3D\PHQW
 

 


 
 



 

 
89 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
)RUWKH<HDU(QGHG-XQH


127(
 35,253(5,2'$'-8670(176

&KDQJHLQ$FFRXQWLQJ3ULQFLSOH

)RUWKHILVFDO\HDUHQGHG-XQHWKH&LW\UHVWDWHGWKH EHJLQQLQJQHWSRVLWLRQRIWKH*DVVHU&)'&XVWRGLDO )XQGE\7KLVSULRUSHULRGDGMXVWPHQWZDVPDGHWRDGMXVWWKHLPSOHPHQWDWLRQRI*$6%6WDWHPHQW1R GRQHLQSULRU\HDUV)XUWKHUFODULILFDWLRQVUHFHLYHGIURPWKH*$6%%RDUGVXEVHTXHQWWRWKHLVVXDQFHRIWKHSULRU ILQDQFLDOVWDWHPHQWVUHVXOWHGLQWKHUHPRYDORIFDVKKHOGIRUIXWXUHERQGUHSD\PHQWRIFRQGXLWGHEWIURP1HW3RVLWLRQ 7KLVDPRXQWLVQRZUHIOHFWHGDVDFXUUHQWOLDELOLW\'XHWR%RQGKROGHUVZLWKLQWKH&XVWRGLDO)XQG 


127(

 68%6(48(17(9(176

7KH&LW\HYDOXDWHGVXEVHTXHQWHYHQWVIRUUHFRJQLWLRQDQGGLVFORVXUHWKURXJK-DQXDU\WKHGDWHRQZKLFK WKHVHILQDQFLDOVWDWHPHQWVZHUHDYDLODEOHWREHLVVXHG0DQDJHPHQWFRQFOXGHGWKDWQRPDWHULDOVXEVHTXHQWHYHQWV KDYHRFFXUUHGVLQFH-XQHWKDWUHTXLUHGUHFRJQLWLRQRUGLVFORVXUHLQWKHVHILQDQFLDOVWDWHPHQWV 
-XQH &KDQJHVWRRU &KDQJHVLQ
$V3UHYLRXVO\ ZLWKLQWKH (UURU $FFRXQWLQJ -XQH 5HSRUWHG 5HSRUWLQJ(QWLW\ &RUUHFWLRQ 3ULQFLSOH $V5HVWDWHG )LGXFLDU\IXQG
*DVVHU&)'&XVWRGLDO)XQG    
 
90 ATTACHMENT 1



5(48,5('6833/(0(17$5<,1)250$7,21

81$8',7('

91 ATTACHMENT 1

THIS PAGE INTENTIONALLY LEFT BLANK
92 ATTACHMENT 1

&,7<2)1$3$&$/,)251,$
1RWHVWR5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ
)RUWKH<HDU(QGHG-XQH


127(
 %8'*(7$5<,1)250$7,21

7KH&LW\ELHQQLDOO\DGRSWVDQDQQXDOEXGJHW'HEWVHUYLFHIXQGEXGJHWVDUHDGRSWHGZKHQWKHDXWKRUL]DWLRQRIWKH GHEW LVVXDQFHLVDXWKRUL]HG$OODQQXDODSSURSULDWLRQVODSVHDWILVFDO\HDUHQGXQOHVVVSHFLDODSSURYDOLVJUDQWHG E\ WKH )LQDQFH'LUHFWRUDQG&LW\0DQDJHUIRUFDUU\RYHUWRWKHVXEVHTXHQW\HDU 
%XGJHWV DUH DOVR DGRSWHG DQG FRQWUROOHG IRU WKH SURSULHWDU\ IXQGV %XGJHWFRPSDULVRQV IRU WKHVHIXQGV DUH QRW OHJDOO\ PDQGDWHG DQG WKXV DUH QRW SUHVHQWHG LQ WKHVH ILQDQFLDOVWDWHPHQWV7KH &LW\ GRHV QRW DGRSW D EXGJHW IRU WKH 3XEOLF ,QIUDVWUXFWXUH ,Q /LHX IXQG DQG WKHUHIRUH WKLV I XQG LV QRW SUHVHQWHG ZLWK WKH RWKHU QRQPDMRU JRYHUQPHQWDOIXQGEXGJHW WRDFWXDOVWDWHPHQWV

,Q DSSUR[LPDWHO\ )HEUXDU\ RI HYHU\ RWKHU \HDU DOO &LW\ GHSDUWPHQWV VXEPLW UHTXHVWV IRU DSSURSULDWLRQV WR WKH &LW\ 0DQDJHUVRWKDWDEXGJHWPD\EHSUHSDUHG,Q0D\WKHSURS RVHGEXGJHWLVSUHVHQWHGWRWKH&LW\&RXQFLO IRUUHYLHZ 7KH&RXQFLOKROGVSXEOLFKHDULQJVDQGDILQDOEXGJHWLVSUHSDUHGDQGDGRSWHGRQRUEHIRUH-XQH 
7KH EXGJHW LV SUHSDUHG DW WKH IXQG SURJUDP DQG GHSDUWPHQW OHYHOV 7KH &LW\¶V GHSDUWPHQW KHDGV PD\ PDNH WUDQVIHUV RI DSSURSULDWLRQVZLWKLQ DGHSDUWPHQW7KH &LW\0DQDJHULV DXWKRUL]HG WR PDNHWUDQVIHUV EHWZHHQ WKH GHSDUWPHQWV ZLWKLQ D VLQJOH IXQG$OO RWKHU DGMXVWPHQWV RU FKDQJHV UHTXLUH &LW\ &RXQFLO DSSURYDO 7KH OHJDO OHYHO RI EXGJHWDU\ FRQWURO LV WKH IXQG OHYHO %XGJHW DPRXQWV VKRZQ LQ WKHVH ILQDQFLDO VWDWHPHQWV LQFOXGH DOO VXSSOHPHQWDODSSURSULDWLRQV PDGHGXULQJWKH\HDU

7KH2SLRLG6HWWOHPHQW)XQGKDGQROHJDOO\DGRSWHGEXGJHWIRUWKHILVFDO\HDUHQGLQJ-XQH 
(QFXPEUDQFH DFFRXQWLQJ XQGHU ZKLFK SXUFKDVH RUGHUV FRQWUDFWV DQG RWKHU FRPPLWPHQWV IRU WKH H[SHQGLWXUH RI PRQLHVDUHUHFRUGHGLQRUGHUWRUHVHUYHWKDWSRUWLRQRIWKHDSSOLFDEOHDSSURSULDWLRQLVHPSOR\HGDVDQH[WHQVLRQ RI IRUPDO EXGJHWDU\ LQWHJUDWLRQ LQ WKH JRYHUQPHQWDO IXQG W\SHV (QFXPEUDQFHV RXWVWDQGLQJ DW \HDUHQG GR QRW FRQVWLWXWH H[SHQGLWXUHVRUOLDELOLWLHVDQGUHDSSURSULDWLRQVLQWKHVXEVHTXHQW\HDUSURYLGHDXWKRULW\WRFRPSOHWHWKHVH WUDQVDFWLRQV DVH[SHQGLWXUHV
93 ATTACHMENT 1

CITY OF NAPA, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 103,421,520$ 103,862,793 $ 103,830,644 $ (32,149)$ Licenses, permits and fees 6,991,350 7,824,150 8,536,759 712,609 Intergovernmental 1,075,000 18,842,428 9,356,400 (9,486,028) Charges for services 6,941,510 7,778,217 9,560,359 1,782,142 Investment income (loss) 224,000 800,000 5,323,672 4,523,672 Miscellaneous 6,500 374,000 373,624 (376) Total revenues 118,659,880 139,481,588 136,981,458 (2,500,130)

EXPENDITURES
Current:

General Government
City Council 351,430 351,430 341,908 9,522 City Clerk 1,326,320 1,337,554 1,162,495 175,059 City Manager 5,828,190 8,487,629 6,774,608 1,713,021 Finance 5,457,970 5,505,163 4,361,343 1,143,820 City Attorney 1,535,130 1,732,940 1,499,219 233,721 Human Resources 2,637,700 2,815,631 2,360,742 454,889 General Services 6,918,610 14,163,307 9,583,395 4,579,912 Public Safety
Police 37,018,920 39,255,171 37,555,327
1,699,844
Fire 24,574,040 26,077,960 24,895,374 1,182,586 Community development 6,631,430 8,158,624 5,304,223 2,854,401 Parks and recreation 10,017,870 11,246,477 10,455,426 791,051 Public works 16,505,270 16,366,551 14,408,778 1,957,773 Capital outlay 88,500 878,852 3,209,505 (2,330,653) Debt service:

Principal 122,560 123,766 1,514,715 (1,390,949) Interest and fiscal charges 6,000 5,200 66,962 (61,762) Total expenditures 119,019,940 136,506,255 123,494,020 13,012,235 Excess (deficiency) of revenues
over (under) expenditures (360,060) 2,975,333 13,487,438 10,512,105

OTHER FINANCING SOURCES (USES)
Transfers in 4,900,540 5,243,254 4,900,540 (342,714) Transfers out (6,550,130) (21,014,041) (14,695,153) 6,318,888 Lease issuance - - 1,243 1,243 Subscription issuance - - 2,942,231 2,942,231 Total other financing sources (uses) (1,649,590) (15,770,787) (6,851,139) 8,919,648 Net change in fund balances (2,009,650) $ (12,795,454) $ 6,636,299 19,431,753 $ Fund balances (deficit)-beginning 41,844,067
Fund balances (deficit)-ending 48,480,366$
94 ATTACHMENT 1