Agenda packet — Reedley City Council, January 23, 2024

ALL CELL PHONES AND ELECTRONIC DEVICES MUST BE

TURNED OFF IN THE COUNCIL CHAMBERS
AGENDA

REEDLEY CITY COUNCIL MEETING
7:00 P.M.

TUESDAY, JANUARY 23, 2024
Meeting Held in the Council Chambers
845 "G" Street, Reedley, California
www.reedley.ca.gov
The Council Chambers are accessible to the physically disabled. Requests for additional accommodations for the disabled, including auxiliary aids or to request translation services, should be made 48 hours prior to the meeting by contacting the City Clerk at 637-4200 ext. 212.

Any document that is a public record and provided to a majority of the City Council regarding an open session item on the agenda will be made available for public inspection at City Hall, in the City Clerk's office, during normal business hours. In addition, such documents may be posted on the City's website.

Unless otherwise required by law to be accepted by the City at or prior to a Council meeting or hearing, no documents shall be accepted for Council review unless they are first submitted to the City Clerk by the close of business one day prior to said Council meeting/hearing at which the Council will consider the item to which the documents relate, pursuant to the adopted City Council Protocols.

The meeting will be held in person and may be observed remotely via Zoom or at:
http://www.reedley.com/livestream.php.

Public comment may be made in person or submitted in writing. Members of the public who wish to provide written comments are encouraged to submit their comments to the City Clerk at [email protected] by the close of business one day prior to the start of the meeting to ensure that the comments will be available to the City Council. Please indicate the agenda item number to which the comment pertains. Written comments that do not specify a particular agenda item will be marked for the general public comment portion of the meeting. A copy of any written comment will be provided to the City Council at the meeting. Please note that written comments received will not be read aloud during the meeting, but will be included with the meeting minutes.

Matthew Tuttle, Mayor Pro Tern
Mary Fast, Council Member
Anita Betancourt, Mayor
Suzanne Byers, Council Member
Scott Friesen, Council Member

MEETING CALLED TO ORDER
INVOCATION- Pastor Mike Schellenberg, Reedley Mennonite Brethren Church

PLEDGE OF ALLEGIANCE

ROLL CALL

AGENDA APPROVAL - ADDITIONS AND/OR DELETIONS
PUBLIC COMMENT - Provides an opportunity for members of the public to address the City Council on items of interest to the public within the Council's jurisdiction and which are not already on the agenda this evening. It is the policy of the Council not to answer questions impromptu. Concerns or complaints will be referred to the City Manager's office. Speakers should limit their comments to not more than three (3) minutes. No more than ten (1 OJ minutes per issue will be allowed. For items which are on the agenda this evening, members of the public will be provided an opportunity to address the Council as each item is brought up for discussion.

NOTICE TO PUBLIC
CONSENT AGENDA items are considered routine and a recommended action for each item is included, and will be voted upon as one item. If a Councilmember has questions, requests additional information, or wishes to comment on an item, the vote should not be taken until after questions have been addressed or comments made, and the public has had an opportunity to comment on the Consent Agenda items. If a Councilmember wishes to have an item considered individually or change the recommended action, then the item should be removed and acted upon as a separate item. A Councilmember's vote in favor of the Consent Agenda is considered and recorded as a separate affirmative vote in favor of each action listed. For adoption of ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

CONSENT AGENDA (Item 1-6)

1. APPROVAL OF MINUTES OF THE REGULAR COUNCIL MEETING OF JANUARY 9, 2024 - (City Clerk)
Staff Recommendation: Approve

2. APPROVE MAYOR'S NOMINATION TO FILL TWO VACANCIES ON THE STREETSCAPE MAINTENANCE COMMITTEE- (City Clerk)

3. SECOND READING AND ADOPTION OF ORDINANCE NO. 2023-007, AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPROVING REZONE APPLICATION NO. 2021-07 AND AUTHORIZING THE AMENDMENT OF THE OFFICIAL ZONING MAP OF THE CITY OF REEDLEY-(APNS: 365-220-80, AND 365-220-81)- (Community Development)
Staff Recommendation: Approve

4. ADOPT RESOLUTION 2024-003 OF THE CITY COUNCIL OF THE CITY OF REEDLEY ADOPTING THE ANNUAL CITY STATEMENT OF INVESTMENT POLICY-(Administrative Services)
Staff Recommendation: Approve

5. CONSIDER THE FOLLOWING ITEMS (A) AND (B) FOR THE CDBG PROJECT NO. 21571 E STREET RECONSTRUCTION PROJECT
A. ADOPT RESOLUTION NO. 2024-006, WHICH REPLACES RESOLUTION 2023-065 RATIFYING THE CONSTRUCTION CONTRACT TO $383,521 FOR EMMETT VALLEY CONSTRUCTION FOR CDBG PROJECT NO.
21571 E STREET RECONSTRUCTION PROJECT
2 B. ADOPT BUDGET RESOLUTION NO. 2024-007 AMENDING THE FISCAL YEAR 2023-2024 BUDGET TO APPROPRIATE AVAILABLE FUNDS IN THE AMOUNT OF $68,227 FOR CDBG PROJECT NO. 21571 E STREET

RECONSTRUCTION PROJECT
Staff Recommendation: Approve

6. ADOPT RESOLUTION NO. 2024-008, ACCEPTING THE CONSTRUCTION IMPROVEMENTS FOR CDBG PROJECT NO. 21571, E STREET RECONSTRUCTION

FROM TENTH STREET TO TWELFTH STREET, AND AUTHORIZE THE CITY

ENGINEER TO FILE A NOTICE OF COMPLETION WITH THE COUNTY OF FRESNO

RECORDER'S OFFICE
Staff Recommendation: Approve

PUBLIC HEARING

7. INTRODUCTION AND FIRST READING OF ORDINANCE 2023-010 REPEALING AND REPLACING CHAPTER 1 OF TITLE 4 OF THE REEDLEY MUNICIPAL CODE PERTAINING TO SOLID WASTE REGULATIONS-Report, discussion and/or other Council action to approve, modify, and/or take other action as appropriate. - (Public Works) Staff Recommendation: Approve

RECEIVE INFORMATION & REPORTS
These items are formal transmittals of information to the Reedley City Council. They are not voted upon by the Reedley City Council. Members of the public who have questions on these items are suggested to call City staff members during regular business hours.

8. REEDLEY'S RIVER CITY THEATRE COMPANY, PROFIT & LOSS STATEMENT FOR THE PERIOD OF SEPTEMBER 2023 - DECEMBER 2023- Community Services

9. REEDLEY TRAFFIC SAFETY COMMISSION MINUTES OF REGULAR MEETING OF AUGUST 31, 2023 - Engineering

10. REEDLEY AIRPORT COMMISSION MINUTES OF REGULAR MEETING OF SEPTEMBER 21, 2023 - Community Services

11. RECEIVE REVIEW, AND FILE THE QUARTERLY INVESTMENT REPORT FOR 2No QUARTER ENDING DECEMBER 31, 2023 FOR FISCAL YEAR 2023-24-Administrative Services

12.QUARTERLY EXPENSE & TRAVEL REPORT FOR ELECTED & APPOINTED OFFICIALS-OCTOBER 1, 2023 THROUGH DECEMBER 31, 2023-Administrative Services

13. RECEIVE, REVIEW, AND FILE 2022-23 AUDITED CITY FINANCIAL STATEMENTSAdministrative Services

COUNCIL REPORTS

14. BRIEF REPORT BY COUNCIL MEMBERS ON CITY RELATED ACTIVITIES AS AUTHORIZED BY THE BROWN ACT AND REQUESTS FOR FUTURE AGENDA ITEMS.

STAFF REPORTS

15. UPDATES AND/OR REPORTS BY CITY MANAGER AND/OR STAFF MEMBERS 3 CLOSED SESSION

16.GOVERNMENT CODE SECTION 54957.6
Conference with Labor Negotiators
Agency Representatives: City Manager & Assistant City Manager Employee Organization: Reedley Public Safety Employees Association & General Services Unit.

17. Government Code Section 54956.8

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 1710 Ninth St. Reedley, CA 93654
Agency Negotiator: City Manager and Assistant City Manager Negotiating Parties: Central CA Commercial Advisory & Brokerage Services Under Negotiation: Price, Terms and Conditions

18. Government Code Section 54956.8

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 936 G St. Reedley, CA 93654
Agency Negotiator: City Manager and Assistant City Manager Negotiating Parties: Pl Properties NO 140 LLC
Under Negotiation: Price, Terms and Conditions

RECONVENE TO OPEN SESSION

ADJOURNMENT
I hereby certify under penalty of perjury, under the laws of the State of California that the foregoing revised agenda was posted in accordance with the applicable legal requirements. Dated this 18th day of January 2024.

Dates to Remember:

February 13, 2024-Regular Meeting
February 27, 2024-Regular Meeting
4 R
~ ~ Clerk ~
:Ii: /
REEDLEY CITY COUNCIL MEETING -January 9, 2024
A complete audio record of the minutes is available at www.reedlev.ca.gov The meeting of Reedley City Council called to order by Mayor Betancourt at 7:00 p.m. on Tuesday, January 9, 2024 in the City Hall Council Chambers, 845 "G" Street, Reedley, California.

INVOCATION - Pastor Virgil Miller, Christ Lutheran Church

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Fast.

ROLL CALL
Council Members

Present:

Absent:

Suzanne Byers, Mary Fast, Scott Friesen, Matthew Tuttle, Anita Betancourt None.

AGENDA APPROVAL - ADDITIONS AND/OR DELETIONS
City Manager Nicole Zieba stated due to the most recent events that happened in our community which it was important to note it happened after the agenda was posted for the council meeting. City Manager Zieba requested that City Manager's Report be moved immediately following agenda approval. By doing this, it would allow people in the audience to hear the latest update on behalf of the City.

Council Member Byers motioned, Council Member Friesen seconded to accept and approve agenda.

Motion unanimously carried.

UPDATES AND/OR REPORTS BY CITY MANAGER
City Manager Nicole Zieba explained in light of the recent multiple homicide incident that happened in the community she wanted to provide an in-depth update for community members who are in the audience.

PRESENTATION

1. INTRODUCTION OF NEW POLICE OFFICER
Police Chief Garza introduced the new Police Officer.

2. NATIONAL HUMAN TRAFFICKING PREVENTION MONTH
January is National Human Trafficking Prevention Month and representatives from Fresno County Economic Development Corporation, Breaking the Chains and others shared ways to prevent human trafficking in Reedley.

3. SMITH' S FERRY HISTORICAL LANDMARK PRESENTATION
Kenneth Zech discussed the historical significance of Smith's Ferry Park and the importance of the historical landmark.

PUBLIC COMMENT
None.

CONSENT AGENDA (Item 4-7)
Council Member Byers asked that item 6 be discussed prior to the vote. Assistant City Manager, Paul Melikian answered the questions regarding the item.

Council Member Fast moved, Council Member Byers seconded to accept, approve and adopt all items listed under the CONSENT AGENDA.

4. APPROVAL OF MINUTES OF THE REGULAR COUNCIL MEETING OF DECEMBER 12, 2023 - Approved
REEDLEY CITY COUNCIL MEETING -January 9, 2024

5. APPROVAL OF EXPENSE REIMBURSEMENT FOR COUNCIL MEMBER FAST -Approved

6. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE AN INVESTMENT FIDUCIARY &

RETIREMENT PLAN CONSULTING AGREEMENT WITH BURNHAM GIBSON WEALTH ADVISORS,

LLC FOR ONGOING ADMINISTRATION SERVICES OF THE CITY'S DEFERRED COMPENSATION PLANS-Approved

7. APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE A FIVE-YEAR SOFTWARE SERVICES AGREEMENT WITH IWORQ SYSTEMS, INC. FOR ONGOING AUTOMATED SOLAR PERMITTING AND RELATED PAYMENT PROCESSING SERVICES-Approved

WORKSHOP

8. UPDATE FROM REEDLEY LITTLE LEAGUE
Community Services Director, Sarah Reid shared the history of the partnership with Little League and the City of Reedley. Mrs. Reid shared her excitement that the City of Reedley was awarded a grant for Camacho Park and shared the project timeline.

Mr. Garcia, the President of Reedley Little League, discussed the previous baseball season and plans for the future.

PUBLIC HEARING

9. CONDUCT A PUBLIC HEARING AND CONSIDER THE FOLLOWING ITEMS ASSOCIATED WITH THE

PROPOSED FUTURE DEVELOPMENT OF SIX TWO-STORY TOWNHOME DUPLEXES SITUATED

NORTHWEST OF THE INTERSECTION OF SOUTH FRANK WOOD A VENUE AND WEST LILAC AVENUE (APNs 365-220-80 & 365-220-81)
A. ADOPT RESOLUTION NO. 2023-055, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY ADOPTING ENVIRONMENTAL ASSESSMENT NO. 2023-16,

PERTAINING TO THE ADOPTION OF A MITIGATED NEGATIVE DECLARATION, DATED SEPTEMBER 26, 2023, PREPARED FOR GENERAL PLAN AMENDMENT APPLICATION NO. 2021-04, REZONE APPLICATION NO. 2021-07, AND CONDITIONAL USE PERMIT APPLICATION NO. 2021-07
B. ADOPT RESOLUTION NO. 2023-056, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPROVING GENERAL PLAN AMENDMENT APPLICATION NO. 2021-04
C. HOLD A PUBLIC HEARING ON THE INTRODUCTION AND FIRST READING OF ORDINANCE NO. 2023-007, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPROVING REZONE APPLICATION NO. 2021-07 AND AUTHORIZING THE

AMENDMENT OF THE OFFICIAL ZONING MAP OF THE CITY OF REEDLEY D. ADOPT RESOLUTION NO. 2023-057, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPROVING CONDITIONAL USE PERMIT APPLICATION NO. 2021-07 Community Development Director, Rodney Horton stated this item pertains to environmental assessment, general plan amendment, rezone application and a conditional use permit that pertains to the construction of six two-story townhome duplexes developed as a planned unit development that will consist of twelve dwelling units on a .90-acre site. The townhomes will consist of 3 bedrooms and 2 bathrooms with the proposed parking of 28 spaces. There will be a new driveway approach located on Frankwood A venue and Cyrier A venue.

Public Hearing Opened: 8:03 p.m.

Maria Velasquez asked questions about the project and inquired when it would be starting.

Public Hearing Closed: 8:05 p.m.
2 REEDLEY CITY COUNCIL MEETING -January 9, 2024
Council Member Fast motioned and Council Member Byers seconded to accept and CONDUCT A PUBLIC

HEARING AND CONSIDER THE FOLLOWING ITEMS ASSOCIATED WITH THE PROPOSED FUTURE

DEVELOPMENT OF SIX TWO-STORY TOWNHOME DUPLEXES SITUATED NORTHWEST OF THE INTERSECTION OF SOUTH FRANK WOOD A VENUE AND WEST LILAC A VENUE (APNs 365-220-80 & 365-220-81)
A. ADOPT RESOLUTION NO. 2023-055, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY ADOPTING ENVIRONMENTAL ASSESSMENT NO. 2023-16,

10. CONSIDER ACTION RELATED TO ANNEXATION OF TERRITORY (ANNEXATION NO. 21) TO THE CITY OF REEDLEY COMMUNITY FACILITIES DISTRICT 2005-1 (PUBLIC SERVICES) WHICH INCLUDE THE FOLLOWING:

A. RESOLUTION 2024-001 , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REEDLEY ANNEXING OF TERRITORY TO A COMMUNITY FACILITIES DISTRICT,

AUTHORIZING THE LEVY OF A SPECIAL TAX, AND SUBMITTING LEVY OF TAX TO QUALIFIED ELECTORS, CITY OF REEDLEY COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) ANNEXATION NO. 21
B. RESOLUTION 2024-002, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REEDLEY DECLARING RESULTS OF A SPECIAL ANNEXATION ELECTION

DETERMINING VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING RECORDING OF

AMENDED NOTICE OF SPECIAL TAX LIEN, CITY OF REEDLEY COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) ANNEXATION NO. 21 Assistant City Manager Paul Melikian stated that a condition to annex into the Community Facilities District was imposed on new developments being processed by the City in 2005 when the district was established. Since that time, all properties must petition to be annexed to the existing district when development is proposed.

Public Hearing Opened: 8:09 p.m.

City Clerk announced that 6 ballots with total of 69 votes were mailed out and 5 ballots with 68 votes were returned.

Public Hearing Closed: 8:10 p.m.

Council Member Tuttle motioned and Council Member Friesen seconded to accept A. RESOLUTION 2024-001 , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REEDLEY ANNEXING OF TERRITORY TO A COMMUNITY FACILITIES DISTRICT,

AUTHORIZING THE LEVY OF A SPECIAL TAX, AND SUBMITTING LEVY OF TAX TO QUALIFIED ELECTORS, CITY OF REEDLEY COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) ANNEXATION NO. 21
Motion unanimously carried.
3 REEDLEY CITY COUNCIL MEETING -January 9, 2024
Ballots were opened by City Clerk and she reported the following votes in favor:

Yes Votes
Otani Properties-45 votes
Allison Otani Hosoda-15 votes
Cipriano Y anez-1 vote
Surf Thru-2 votes
D&L Lowe, LP-5 votes
No Votes
None
Summar
Votes Cast Qualified Land Owner Yes Votes Qualified Land Owner No Votes 68 68 0
City Clerk announced that the 45 "Yes" votes were required in order to proceed with the adoption of Resolution 2024-002 and 68 had been received, therefore Council could proceed.

Council Member Fast motioned and Council Member Tuttle seconded to accept B. RESOLUTION 2024-002, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REEDLEY DECLARING RESULTS OF A SPECIAL ANNEXATION ELECTION

DETERMINING VALIDITY OF PRIOR PROCEEDINGS, AND DIRECTING RECORDING OF

AMENDED NOTICE OF SPECIAL TAX LIEN, CITY OF REEDLEY COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) ANNEXATION NO. 21

COUNCIL REPORTS

11. BRIEF REPORT BY COUNCIL MEMBERS ON CITY RELATED ACTIVITIES AS AUTHORIZED BY THE BROWN ACT AND REQUESTS FOR FUTURE AGENDA ITEMS.

Council Member Tuttle:
• Shared about the ribbon cutting ceremony he attended for Tradewinds Pub

STAFF REPORTS

12. UPDATES AND/OR REPORTS BY CITY MANAGER AND/OR STAFF MEMBERS.

City Manager Nicole Zieba: _
• Discussed the Human Trafficking Awareness month and steps staff will be doing to assist in prevention and education
City Engineer Marilu Morales:
• Provided an update on projects including E Street, 11th Street, and Olson Sewer project

ADJOURNMENT
Mayor Betancourt adjourned the regular meeting at 8:24 p.m.

Mayor Anita Betancourt
ATTEST:

Ruthie Greenwood, City Clerk
4 DATE: January 23, 2024

REEDLEY CITY COUNCIL
~ Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: z. ----
TITLE: APPROVE MAYOR'S NOMINATION TO FILL TWO VACANCIES ON THE

STREETSCAPE MAINTENANCE COMMITTEE
SUBMITTED: Ruthie Greenwood 11A,,,,
City Clerk ~
APPROVED: Nicole R. Zieba
City Manager

RECOMMENDATION
Staff is recommending that the Reedley City Council approve Mayor Betancourt's nomination to fill two vacancies on the Streetscape Maintenance Committee. After review of the applications by Mayor Betancourt, she is recommending appointments to the commission.

BACKGROUND
The positions are available on the Streetscape Maintenance Committee due to one vacancy and also the resignation of Mike Franks. Mayor Betancourt has reviewed the applications and is recommending that Todd Barsoom be appointed to complete the rest of Mike Frank's term on the Streetscape Maintenance Committee. Mark Luzania is recommended to be appointed as the alternate on the Streetscape Maintenance Committee.

Streetscape Maintenance Committee terms are three (3) year terms. Due to Todd Barsoom is completing the remainder of a term, his term expiration will be August 2026. The alternate position which will be filled by Mark Luzania has a term expiration of August 2024.

FISCAL IMPACT
No Fiscal Impact

ATTACHMENTS
Two (2) applications

Page 1 of 1 ends

CtTY OF REEDLEY

COMMISSION/COMMITTEE APPLICATION FORM
I hereby request that I be considered for appointment to the following Commission or Committee:

PLEASE TYPE OR PRINT IN BLACK INK

CHECK ONE ONLY- USE SEPARATE APPLICATION FOR EACH COMMISSION D Airport Commission
D Community Services Commission
(Must reside within City limits)
D Planning Commission
(Must reside within City limits)
D Traffic Safety Commission
(Must reside within City limits)
~ Streetscape Maintenance Committee
(Must be a business owner within downtown streetscape
maintenance district)
NAME:

HOME ADDRESS:

MAILING ADDRESS (if different from above):
-J~~"-'y c:..A ':\~~.st
HOMEPHONE: ,_........,......,... ______ DAYPHONE
EMAIL ADDRESS (if applicable)
RESIDENT OF REEDLEY FOR b 3 YEARS.

EMPLOYED BY: ~ C\f'~ ~( W\.'S, ~ c.. .
~--------~
DATE: \\\-.,,~'.:!, SIGNATU~ --· · __ ....;; ·==• ··=· ·:;;;. .._· · 7 · ._·.·-...::i ·· ~ . . ::- .. -~=~=====-
(Additional infonnation is requested on the back of this fonn) OtTY OF REEDLEY
COMMISSION/CO~~TTEE APPLICA "f'ION FORM
I t,ereby request that I be considered for appoihtment to the following Commission or Committee:

PLEASE TYPE OR PR.INT ·IN BLACK INK
CHECK ONE ONLY-USE SEPARATE AP.PLICATION FOR EACH COMMISSION ·M i' -~
~AME:

Airport Commission
CommuAity Services Commission
(Must reside within City limits, provided that up to 2
commissioners ma¥ resioe outside dty limits but within
city's sphere of influence)
Planning Commission
(Must r~side within City Jimits1-
Traffic Safety Commission
(Must reside within City limits)
Streetscape Maintenance Committee
(Mt1st be a business owner within downtown streetscape
maintenance district)
HOME ADDRESS:
~~~&
-~~IL ~t4~1t{~l~~i~~1ijijJlm~ift):,: ·
RESIDENT OF REEDLEY FOR_·----'--· YEARS.

EMPLOYED BY: ""' %f-e 4· ...:::;....___....:._ I+ _ ___;;..,.__..,,...,,....,,...._~ -~--~----------......- (Additional information is requested on the back of this form) DATE:

TITLE:

FROM:

APPROVED:

REEDLEY CITY COUNCIL
January 23, 2024
['.8J Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: 3 ---
SECOND READING AND ADOPTION OF ORDINANCE NO. 2023-007, AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REEDLEY
APPROVING REZONE APPLICATION NO. 2021-07 AND AUTHORIZING THE

AMENDMENT OF THE OFFICIAL ZONING MAP OF THE CITY OF REEDLEY - (APNS: 365-220-80, AND 365-220-81)
Rodney Horton, Director {!}JkCommunity Development Department Nicole R. ZiebL
City Manager

RECOMMENDATIONS
Staff recommends that the City Council hold the second reading and adopt Ordinance No. 2023-007, an Ordinance of the City Council of the City of Reedley approving Rezone Application No. 2021-07 and authorizing the amendment of the Official Zoning Map of the City of Reedley - (APNs: 365-220-80, and 365-220-81 ).

EXECUTIVE SUMMARY
Ordinance No. 2023-007 (Rezone Application No. 2021-07) pertains to the reclassification of two contiguous undeveloped parcels of land located northwest of the intersection of South Frankwood Avenue and West Lilac Avenue (APNs 365-220-80 and 365-220-81 ). The parcels current zone district designation is R-1 (SP) (Single-Unit Residential) and the applicant is proposing to reclassify the two abovementioned parcels to the RM-3 (Multi-Unit Residential) zone district designation. The RM-3 (Multi-Unit Residential) zone district designation would be consistent with the proposed General Plan Planned Land Use designation of Medium Density Residential. A twelve-unit townhome duplex is a by-right use in the RM-3 (Multi-Unit Residential) zone district.

On January 9, 2024, the introduction of Ordinance No. 2023-007 was presented to the City Council and a public hearing was opened. After the public hearing was closed, the City Council unanimously voted in favor of introduction and first reading of the proposed ordinance.

PROJECT DESCRIPTION/BACKGROUND
The applicant is proposing to construct six two-story townhome duplexes developed as a Planned Unit Development that will consist of twelve dwelling units on a .90-acre site. The proposed residential project location is on two contiguous undeveloped parcels situated northwest of the intersection of South Frankwood Avenue and West Lilac Avenue (APNs 365- 220-80 and 365-220-81). Each unit will be approximately 1,483 sq. ft. in size, and will consist of 3-bedrooms and 2-bathrooms with the proposed off-street parking consisting of 28 total spaces. A new driveway approach will be located on Frankwood Avenue and Cyrier Avenue.

The proposed rezone application is seeking to reclassify the subject parcels to the RM-3 (MultiUnit Residential) zone district designation from the R-1 (SP) (Single-Unit Residential) zone district designation. This proposal is consistent with the proposed General Plan amendment application that is seeking to reclassify the subject parcels from the General Plan Planned Land Use designation of Low Density Residential to Medium Density Residential. Exhibit A attached to Ordinance No. 2023-007 shows what the proposed Rezone Application would look like on the City of Reedley Zoning Map.

Since General Plan Amendment Application No. 2021-04 was approved by the City Council at their regular meeting held on January 9, 2024, staff has determined the proposed rezone for the property described above is consistent with the GPU Planned Land Use and Zoning District Consistency Matrix (GPU, Table 2-4, Page 30).

COMMITTEE/COMMISSION REVIEW/ACTIONS
On December 7, 2023, the City of Reedley Planning Commission, using their independent judgment, recommended approval of Rezone Application No. 2021-07 (Ordinance No. 2023- 007).

FINANCIAL IMPACT
The project applicant has paid all applicable entitlement application fees.

ATTACHMENTS

1. Ordinance No. 2023-007, an Ordinance of the City Council of the City of Reedley approving Rezone Application No. 2021-07 and authorizing the amendment of the official zoning map of the City of Reedley

Page 2 of 2 ends

ORDINANCE NO. 2023-007

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REEDLEY APPROVING REZONE APPLICATION NO. 2021-07 AND

AUTHORIZING THE AMENDMENT OF THE OFFICIAL ZONING MAP

OF THE CITY OF REEDLEY
WHEREAS, Rezone Application No. 2021-07 has been filed pertaining to re-designating two contiguous undeveloped parcels situated northwest of the intersection of South Frankwood Avenue and West Lilac Avenue (APNs 365-220-80 and 365-220-81) from the R-1 (SP) (SingleUnit Residential) zone district designation to the RM-3 (Multi-Unit Residential) zone district designation; and
WHEREAS, the Reedley General Plan Update 2030 currently designates the subject properties as Low Density Residential, however the applicant is proposing to also re-designate the parcels as Medium Density Residential through General Plan Amendment Application No. 2021-04 ; and WHEREAS, Rezone Application No. 2021-07 will be consistent with the proposed General Plan Planed Land Use designation of Medium Density Residential, the overall guiding land use principles described in the General Plan Update 2030, Land Use Element, and specific Land Use Element goals and policies, which when applied, further support the zone district reclassification; and WHEREAS, the proposed zoning designation identified in Rezone Application No. 2021-07, RM3 (Multi-Unit Residential), is consistent with the GPU Planned Land Use and Zoning District Consistency Matrix; and
WHEREAS, Rezone Application No. 2021-07 is consistent with the Reedley Municipal Code, Title 10, Zoning Regulations, Chapter 3 (Zoning District and Map) and Chapter 22 (Amendments); and WHEREAS, the project, in totality of General Plan Amendment Application No. 2021-04, Rezone Application No. 2021-07, and Conditional Use Permit Application No. 2021-07, was evaluated and environmentally assessed in accordance with provisions of the California Environmental Quality Act as determined through a Mitigated Negative Declaration, dated September 26, 2023, prepared for the project; and
WHEREAS, the City of Reedley Planning Commission, at the regular meeting on December 7, 2023, held a public hearing, received a written staff report, invited public comment, independently deliberated, and recommended that the City Council of the City of Reedley approve Rezone Application No. 2021-07 by adopting Ordinance No. 2023-007; and
WHEREAS, the City Council of the City of Reedley, at the regular meeting on January 9, 2024, held a public hearing, received a written staff report, invited public comment, and independently deliberated.

NOW, THEREFORE, the City Council of the City of Reedley does hereby ordain as follows :

Section 1. The above recitals are true and correct; and Section 2. The City Council FINDS that Rezone Application No. 2021 -07 is consistent with the Reedley General Plan Update 2030; and
Section 3. The City Council FINDS that Rezone Application No. 2021-07 is consistent with the Reedley Municipal Code, Title 10, Zoning Regulations, Chapter 3 (Zoning District and Map) and Ordinance 2023-007

Page 1 of 2 ends

Chapter 22 (Amendments); and
Section 4. The City Council hereby APPROVES Rezone Application No. 2021-07 and incorporates the changes reflected therein into the zoning law and map of the City of Reedley, as reflected on Exhibit A; and
Section 5. The City Council hereby APPROVES the amendment to the Official Zoning Map and ADOPTS said updated map as the City's Official Zoning Map; and Section 6. The City Clerk is hereby directed to cause a summary of this ordinance to be published by one insertion in a newspaper of general circulation in the community at least five (5) days prior to adoption and again within fifteen (15) days after its adoption.

Section 7. This Ordinance does not need to be codified because there is no text in the Municipal Code that needs to be revised; and
Section 8. This Ordinance shall be in full force and effect thirty (30) days after its passage and adoption, as certified by the City Clerk.

ATTEST:

I hereby certify that the foregoing Ordinance No. 2023-007 was introduced and given first reading by title only at a regular meeting of the City Council of the City of Reedley held on January 9, 2024, and was thereafter duly adopted at a regular meeting of said City Council held on January 23, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Ruthie Greenwood, City Clerk
City of Reedley
Attachment:

Anita Betancourt, Mayor
City of Reedley
Exhibit A: Map of affected parcels related to Rezone Application No. 2021-07 Ordinance 2023-007

Page 2 of 2 ends

City of Reedley
Ordinance No. 2023-007
Rezone Application No. 2021-07
Exhibit A
Project Information
APN(s): 365-220-80 and 365-220-81
Acres: 0.90 acres
Proposed Zoning Designation:

RM-3
Residential, Medium Densit
~~~~~~~ RP~NTER~wi-L
f -
.·••··••·•·•·••·••·•••·•·2 ; ~ ~------1
•~~-_~CAfJTIJJ~~--,
_,._ .... -.. -.. -... 1.LLl.l.l..L~
Location Map
:1111111 .. i : ProJ· ect 1-=====- .,.. b:. II I - !I
L t
. II • i . •
oca 10n :: aw,•' · _;
!
!
I
I
. ~
,, ,;:::::===~~=- '• II • i ... , i
i ....... ,< ~=== cb" - ,<~ E NO~J.liJ Aif E "'" .. . .... 1\. w '~•-c ':I.. > ... ~ ✓' <l: ,r ~E DINUBAAVL?
<(1•~r-~~ ,J U .. t -.. ••~ ~ Z!i #1i~"••) II :s •• ~
...... ,... II I •n••• ~,... . •
E ~~~ 1'i..#~ ii i FT~ r ,u•n
0 175 350 700 Feet
Legend
.........
=. ... • • = Subject Properties .. ..... i i. .... r Reedley City Limits Zoning Designations [==] R-1 (SP) (One Family Residential) R-1·-6 (One Family Residential)
- R-1-9 (One Family Residential)
- RCO (Resource Conservation & Open Space)
- RM-3 (Multifamily Residential, Medium Density)

REEDLEY CITY COUNCIL
DATE: January 23, 2024
1:8J Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: ±
TITLE: ADOPT RESOLUTION 2024-003 OF THE CITY COUNCIL OF THE CITY OF

REEDLEY ADOPTING THE ANNUAL CITY STATEMENT OF INVESTMENT POLICY SUBMITTED: Paul A. Melikian, Assistant City ~anag~
APPROVED: Nicole R. Zieba, City Manager y

RECOMMENDATION
That the City Council Adopt Resolution No. 2024-003 approving the annual Statement of Investment Policy, last reviewed and adopted by the City Council on January 10, 2023.

BACKGROUND
Government Code Section 53646(a) requires that a public entity's investment policy be reviewed annually by the governing body or an investment committee. The City's present Investment Policy, Attachment "A", was last reviewed in 2023. An investment policy should identify the parameters of the investment function with the primary objectives being safety, liquidity and yield, in that order. These features are satisfied by the City's present policy, including a section on periodic reporting of portfolio performance. After reviewing the existing policy, staff has no recommended changes. Last year, the City Council permitted a recommended change to add "Shares of beneficial interest issued by a Joint Powers Authority" and the California Asset Management Program (CAMP) as permissible investment options for idle City funds. One year later, CAMP is proving to be a successful investment vehicle.

Portfolio Monitoring & Compliance
The Government Finance Officers Association (GFOA) recommends that an agency's investment policy explicitly require periodic reporting. Consistent with GFOA best practices, the Administrative Services Department will continue to prepare quarterly summary investment reports within 45 days after the close of each quarter, with an Annual Investment Report prepared and filed within 60 days of year end. Quarterly and annual reports have been, and will continue to be, presented to City Council as a 'Receive, Review and File' item. The City's Assistant City Manager position is identified in the attached resolution as authorized to invest funds and otherwise do all things necessary to implement the Statement of Investment Policy.

All financial investment instruments are constantly monitored and assessed for safety, liquidity and yield.

The City's idle funds have historically been in principal safe investments that protect its pooled cash, such as money market accounts, rolling Certificates of Deposit through Multi-Bank Securities in various FDIC insured accounts, and the California Asset Management Program. Adoption of this annual policy will allow staff to continue to ensure continued compliance, safety of principal, sufficient portfolio liquidity, and an acceptable yield for the City's idle cash balances.

ATTACHM ENTS
Resolution 2024-003; Exhibit "A" - Statement of Investment Policy RESOLUTION NO 2024-003

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY

ADOPTING THE ANNUAL CITY OF REEDLEY STATEMENT OF

INVESTMENT POLICY
WHEREAS, the authority governing investments for California local agencies is set forth in the California Government Code, Sections 53601 et. seq.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Reedley as follows:

1. Pursuant to Government Code Sections 53601 et. seq., the City of Reedley City Council hereby authorizes and directs the City Treasurer/Finance Officer (Assistant City Manager) to invest funds not required for the immediate necessities of the City in accordance with the attached Statement of Investment Policy which is hereby adopted and incorporated by reference as Exhibit "A".

2. The City Treasurer/Finance Officer (Assistant City Manager) is hereby directed and authorized to do all things necessary to implement said Statement of Investment Policy.

This foregoing resolution was duly passed, approved and adopted by the City Council of the City of Reedley this 23rd day of January, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Anita Betancourt, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
Attachment

1. Exhibit A - City of Reedley Statement of Investment Policy Exhibit A

CITY OF REEDLEY

STATEMENT OF INVESTMENT POLICY

PURPOSE
This Statement is intended to provide guidelines for the prudent investment of the City's temporary idle cash, and outline the policies for maximizing the efficiency of the City's cash management system.

The ultimate goal is to enhance the economic status of the City while protecting its pooled cash.

OBJECTIVE
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield obtainable as long as the investments meet the criteria established for safety and liquidity.

POLICY
The City of Reedley operates its temporary pooled idle cash investments under the Uniform Prudent Investor Act (Act) as generally described in California Probate Code section 16045, et. seq. The Act states, in essence, that "in investing ... property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs ... ". This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California. Government Code (Section 53601) restricts the City from purchasing investment securities with a maturity length greater than five years unless prior legislative approval is given.

Investments may be made in the following media and as specifically outlined under Government Code Section 53601:
• U.S. Treasury issues
• Federal Agency issues
• Supranational Securities as identified & defined by AB 1933 (effective January 1, 2015) • Bonds, Notes
• Commercial Paper
• Bankers Acceptances
• Certificates of Deposits
• Repurchase Agreements and Reverse Repurchase Agreements • Local Agency Invest Fund Demand Deposits (State Pool) • Passbook Savings Account Demand Deposits
• Central San Joaquin Valley Risk Management Pooled Investment Fund • Shares of beneficial interest issued by a Joint Powers Authority • California Asset Management Program
Criteria for selecting investments and the order of priority are:

1. 2.

Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City only operates in those investments that are considered very safe.

Liquidity. This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.

3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return.

Safekeeping. Securities purchased from brokers/dealers shall be held in third party safekeeping by the trust department of the local agency's bank or other designated third-party trust, in local agency's name and control, whenever possible.

Investment Objective. The cash management system of the City of Reedley is designed to accurately monitor and forecast expenditures and revenues, thus insuring the investment of monies to the fullest extent possible. Attempts to obtain highest interest yields possible as long as investments meet the criteria required for safety and liquidity. The City strives to maintain the level of investment of all idle funds as near 100% as possible, through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the City Treasurer/Finance Officer (Assistant City Manager).

Prudence. As it pertains to its pooled cash investments, the City adheres to the guidance provided by the "prudent investor standard," as set forth in Government Code section 53600.3, which specifically addresses public investing, as follows:
"Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law".

The basic premise underlying the City's investment philosophy is, and will continue to be, to insure that money is always safe and available when needed.

Public Trust. All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. In a diversified portfolio it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio investment return, provided that adequate diversification has been implemented.

Ethics and Conflicts of Interest. Employees and officials involved in the investment process shall refrain from personal business activities that create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or impairs their ability to make impartial investment decisions.

Reporting. Consistent with industry best practices, the City Treasurer/Finance Officer (Assistant City Manager) will prepare quarterly summary investment reports within 45 days after the close of each quarter, with an Annual Investment Report prepared and filed within 60 days of year end. Quarterly and annual reports will be presented to City Council as a Receive, Review and File item.

DATE:

TITLE:

January 23, 2024

REEDLEY CITY COUNCIL
~ Consent Calendar
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: 5 ----

CONSIDER THE FOLLOWING ITEMS (A) AND (B) FOR THE CDBG PROJECT NO. 21571 E STREET RECONSTRUCTION PROJECT
(A) ADOPT RESOLUTION NO. 2024-006, WHICH REPLACES RESOLUTION 2023-065 RATIFYING THE CONSTRUCTION CONTRACT TO $383,521 FOR EMMETT VALLEY CONSTRUCTION FOR CDBG PROJECT NO.
21571 E STREET RECONSTRUCTION
(B) ADOPT BUDGET RESOLUTION NO. 2024-007 AMENDING THE FISCAL YEAR 2023-2024 BUDGET TO APPROPRIATE AVAILABLE FUNDS IN THE AMOUNT OF $68,227 FOR CDBG PROJECT NO. 21571 E STREET

RECONSTRUCTION
PREPARED: Linda Xiong LX
Assistant Engineer
SUBMITTED: Marilu Morales , A " J
City Engineer ~\Y\
APPROVED: Nicole Zieba
City Manager

RECOMMENDATION
Staff recommends that the City Council take the following actions:
(A) Adopt Resolution No. 2024-006, which replaces Resolution 2023-065 ratifying the construction contract to $383,521 for Emmett Valley Construction for CDBG Project No. 21571 E Street Reconstruction
(B) Adopt Budget Resolution No. 2024-007 amending the fiscal year 2023-2024 budget to appropriate available funds in the amount of $68,227 for CDBG Project No. 21571 E Street Reconstruction

EXECUTIVE SUMMARY
After the construction was completed on the project, it was found that the slope coming down 11th Street into the intersection of E Street and 11th Street was steeper than originally designed

Page 1 of 2 ends

and posed a safety risk to vehicles. To rectify this, the roadway was redesigned to reduce the slope along 11 th Street. In order to improve the safety risk as soon as possible and to minimize incurring additional costs, a contract change order for $63,810.00 was approved. This amount is higher than the originally approved contingency amount; therefore, staff is presenting Resolution No. 2024-006 to replace the previous resolution, replacing the lesser amount ($319,711) with the higher amount ($383,521).

In conjunction with the revised construction contract Staff is requesting that Council adopt resolution No. 2024-007 amending the fiscal year 2023-2024 budget appropriating available funds in the amount of $68,227 for the CDBG Project No. 21571 E Street Reconstruction Project.

Staff is requesting that a contingency of 10% of the new contract amount or $38,352.10 be authorized to cover bid quantity adjustments and other incidentals encountered during construction.

PROJECT DESCRIPTION/BACKGROUND
On September 12, 2023, Council adopted Resolution No. 2023-065, awarding a construction contract in the amount of $319,711.00 to Emmett Valley Construction, for the CDBG Project No. 21571 E Street Reconstruction Project. Upon completion of the project, it was found that the slope coming down 11th Street into the intersection of E Street and 11th Street was steeper than originally designed and posed a safety risk to vehicles. To rectify this, the roadway was redesigned to reduce the slope along 11 th Street. In order to improve the safety risk as soon as possible and to minimize incurring additional costs, a contract change order for $63,810.00 was approved by Fresno County on January 10, 2024. The work was originally part of a future 11 th Street Project, however, was added to this contract to minimize the safety risk. Staff is requesting that Resolution No. 2024-006 be approved to replace Resolution No. 2023-065.

Staff is also requesting that Council adopt resolution No. 2024-007 amending the fiscal year 2023-2024 budget appropriating available funds in the amount of $68,227 for the CDBG 21571 E Street Reconstruction Project. There are ample funds in the original CDBG contract to cover the additional costs. Staff is requesting that a contingency of 10% of the new contract amount or $38,352.10 be authorized to cover bid quantity adjustments and other incidentals encountered during construction.

PRIOR COUNCIL ACTIONS
Resolution No. 2023-065 awarded a construction contract for the Project to the lowest responsive, responsible bidder, Emmett Valley Construction, in the amount of $319,711.00 plus a 10% contingency of the total bid or $31,971 .10 for a total of $351,682.10.

FISCAL IMPACT
The additional project costs will be funded through the City's Community Development Block Grant fund.

ATTACHMENTS

1. Resolution No. 2024-006

2. Resolution No. 2024-007

3. September 12, 2023 Council Staff Report and Attachments

Page 2 of 2 ends

RESOLUTION NO. 2024-006

A RESOLUTION TO THE CITY COUNCIL OF THE CITY OF REEDLEY AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF$ 418,269 TO EMMETT VALLEY CONSTRUCTION FOR CDBG PROJECT NO. 21571, E

STREET RECONSTRUCTION FROM TENTH STREET TO TWELFTH STREET WHEREAS, the City of Reedley issued a Notice to Bidders for CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street Project; and WHEREAS, the City received, opened, and read aloud five (5) bids which the total Base Bid ranged from $319,711.00 to $509,532.00; and
WHEREAS, the lowest, most responsive and responsible bid was submitted by Emmett Valley Construction; and
WHEREAS, after project completion it was found that the slope coming down 11 th Street into the intersection of E Street and 11 th Street was steeper than originally designed and posed a safety risk to vehicles resulting in a contract change order in the amount of $63,810 being authorized in order to rectify the issue as soon as possible; and WHEREAS, the City Council, using their independent judgment desires to award a construction contract for the lowest responsible responsive bid for total Base Bid plus Contract Change Order Number 4 in the amount of $383,521.00.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Reedley, using their independent judgment, hereby approves Resolution No. 2024-006 based on the following:

1. The above recitals are true and correct; and

2. That the contract for the CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street Project is awarded to Emmett's Excavation, Inc. for the unit and lump sum prices as bid, the total amount of the contract being $383,521.00.

3. That the City Manager is authorized and directed to promptly execute the contract for the subject work with Emmett Valley Construction subject to the submittal of the necessary bonds, insurance certificates and other necessary documents required by the specifications and special provisions for this project, all for the approval by and to the satisfaction of the City Engineer and the City Attorney.

4. The City Manager or her designee, is hereby authorized to execute contract change orders to the contract for this project and shall not exceed 10% of the Base Bid or $38,352.10 without prior approval of this City Council.

5. The construction budget for this project, which includes the construction contract and contingency costs, shall not exceed approximately $421,873.10.

6. This resolution is effective immediately upon adoption.

This forgoing resolution is hereby approved at a regular meeting of the City Council of the City of Reedley held on the 23rd day of January 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Anita Betancourt, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
RESOLUTION NO. 2024-006

BUDGET AMENDMENT
RESOLUTION 2024-007
The City Council of the City of Reedley does hereby amend the 2023-24 Budget as follows:

SECTION I - ADDITIONS
Account Number Account Description Amount
024-4460. 6252 CDBG 21571 E Street Reconstruction $ 68,227 Total $ 68,227
Purpose: Construction costs for additional improvements on 11th Street for CDBG Project No. 21571 E Street Reconstruction

SECTION II - SOURCE OF FUNDING
Account Number Account Description Amount
024-3875 CDBG 21571 $ 68,227
Total $ 68,227
Impact: Sufficient funds in CDBG account for the construction improvements of CDBG Project No. 21571 E Street Reconstruction
REVIEWED: RECOMMENDED:

Assistant City Manager City Manager
The foregoing resolution was approved by the City Council of the City of Reedley on this 23rd day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN : APPROVED:

Anita Betancourt, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
DATE:

TITLE:

September 12, 2023

REEDLEY CITY COUNCIL
~ Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
EM NO: 7 ---

CONSIDER THE FOLLOWING ITEMS (A) AND (B) FOR COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROJECT NO. 21571, E STREET RECONSTRUCTION FROM TENTH STREET TO TWELFTH STREET:
(A) ADOPT BUDGET RESOLUTION NO. 2023-064 AMENDING THE FISCAL YEAR 2023-2024 BUDGET TO APPROPRIATE AVAILABLE FUNDS IN THE AMOUNT OF $422,348 FOR CDBG PROJECT NO. 21571, E STREET RECONSTRUCTION

FROM TENTH STREET TO TWELFTH STREET
(8) ADOPT RESOLUTION NO. 2023-065 AWARDING A CONSTRUCTION CONTRACT TO EMMETT VALLEY CONSTRUCTION FOR CDBG PROJECT NO. 21571, E STREET RECONSTRUCTION FROM TENTH STREET TO TWELFTH STREET
PREPARED: Linda Xiong L)<.

Assistant Engineer
SUBMITTED: Marilu S. Morales, P.E. , 1 ;A
City Engineer ~
APPROVED: Nicole Zieba
City Manager

RECOMMENDATION
Staff recommends that the City Council take the following actions:
(A) Adopt Budget Resolution No. 2023-064 amending the fiscal year 2023-2024 budget to appropriate available funds in the amount of $422,348 for CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street.
(B) Adopt Resolution No. 2023-065, awarding a construction contract to Emmett Valley Construction for CDBG project no. 21571 , E Street reconstruction from Tenth Street to Twelfth Street.

EXECUTIVE SUMMARY
Staff is requesting that the City Council adopt Budget Resolution No. 2023-064 in the amount of $422 ,348 to fully fund construction, construction management, and contingencies to complete the Community Development Block Grant (CDBG) Project No. 21571 , E Street Reconstruction from Tenth Street to Twelfth Street (Project). The Project will be fully funded by CDBG funds and if any additional funds are required for this project, Measure C Street Maintenance funds will be allocated towards the Project.

The Project is located on E Street from Tenth Street and Twelfth Street and includes the following major construction items: roadway reconstruction , installation of ADA compliant driveway approaches, ramps and sidewalks, pavement delineation and minor storm drain items .

In conjunction with the requested budget amendment, Staff is requesting that Council adopt Resolution No. 2023-065 awarding the Project to Emmett Valley Construction in the amount of $319,711 .00 and authorize the City Manager to execute the Public Improvement Agreement for the Project. Execution of the Agreement is subject to the submittal of the necessary bonds, insurance certificates and other necessary documents as required by the specifications , special provisions for this project and State law.

Staff is also requesting that a contingency of 10% of the base bid , or $31 ,971 .10 be included in the Council action to cover any unforeseen incidentals.

PROJECT DESCRIPTION/BACKGROUND
The City of Reedley and County of Fresno entered into Agreement 23-432 for the Project on August 22, 2023. The scope of work for the Project includes, in general, roadway reconstruction, installation of ADA compliant driveway approaches , ramps and sidewalks , pavement delineation and minor storm drain items.

On April 6, 2023, a Notice to Bidders for the Project was advertised in Mid-Valley Times, the City website, and on local builders exchanges for a period of approximately three (3) weeks . During the bidding period, six (6) contractors requested bid documents from the City for this project. Two (2) addenda were issued during the project bidding period for the mandatory 10-day federal wage check as required for Davis-Bacon Act prevailing wage compliance and to provide the geotechnical report to contractors .

On April 25, 2023, City staff conducted the bid opening for this project where five (5) bids were received , opened , and read aloud. The bids received for the total Base Bid ranged from $319,711.00 to $509,532 .00 as shown in the attached Bid Tabulation. The engineer's estimate of probable cost for the Base Bid was $586,208.00.

The Project's construction award was postponed because the County's environmental clearance took longer than expected. The County was unable to finalize Agreement 23-432 without obtaining environmental clearance, and the City could not award the contract until the Agreement was executed.

PRIOR COUNCIL ACTIONS
Resolution No. 2023-023 authorizing the execution of the City-County Agreement for Community Development Block Grant Project No. 21571 , E Street Reconstruction from Tenth Street to Twelfth Street.

FISCAL IMPACT
The total authorization request for the construction contract is $319,711 .00 with an additional contingency amount of $31 ,971 .10 for a total of $351 ,682 .10. There is no impact to the General Fund as the project is funded with CDBG. The total budget for the Project is $422 ,348.00 which includes the cost of construction , staff time for construction management and inspections , construction staking , and construction testing .

ATTACHMENTS

1. Budget Resolution No. 2023-064

2. Resolution No. 2023-065

3. Bid Tabulation

Page 2 of 2 ends

BUDGET AMENDMENT
RESOLUTION 2023-064
The City Council of the City of Reedley does hereby amend the 2023-24 Budget as follows:

SECTION I - ADDITIONS
Account Number Account Description Amount
024-4460.6252 CDBG 21571 E Street Reconstruction $ 422,348 Total $ 422,348
Purpose: Construction improvements and construction management costs for CDBG Project No. 21571 E Street Reconstruction from 10th Street to 12th Street

SECTION II - SOURCE OF FUNDING
Account Number Account Description Amount
024-3875 CDBG 21571 $ 422,348
Total $ 422,348
Impact: Sufficient funds in CDBG account for the construction improvements and construction management of CDBG Project No. 21571 E Street Reconstruction from 10th Street to 12th Street REVIEWED:

Assistant
~~ City Manager 9'/oro/t.3 ~ City Manager
The foregoing resolution was approved by the City Council of the City of Reedley on this 12th day of September 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Tuttle, Bye ~~- P~ot, Frisen, Bet8 n court.

None.

None .
'\ N F~EF r ~ . ~-;-~-;--,.;: o_, / f'
,l . . ,-:-. <c)--
APPROVED:
{Jc~ ~,;U!,t/l/(y-t
nita Betancourt, Mayor
R~uthie Greenwood, City Clerk ~~~,Iv I . '' Y(',.._u , . : .

RESOLUTION NO. 2023-065

A RESOLUTION TO THE CITY COUNCIL OF THE CITY OF REEDLEY

AWARDING A CONSTRUCTION CONTRACT TO EMMETT VALLEY
CONSTRUCTION FOR CDBG PROJECT NO. 21571, E STREET

RECONSTRUCTION FROM TENTH STREET TO TWELFTH STREET
WHEREAS, the City of Reedley issued a Notice to Bidders for CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street Project; and WHEREAS, the City received, opened, and read aloud five (5) bids which the total Base Bid ranged from $319,711.00 to $509,532.00; and
WHEREAS, the lowest, most responsive and responsible bid was submitted by Emmett Valley Construction; and
WHEREAS, the City Council, using their independent judgment desires to award a construction contract for the lowest responsible responsive bid for total Base Bid in the amount of $319,711.00.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Reedley, using their independent judgment, hereby approves Resolution No. 2023-065 based on the following:

1. The above recitals are true and correct; and

2. That the contract for the CDBG Project No. 21571 , E Street Reconstruction from Tenth Street to Twelfth Street Project is awarded to Emmett's Excavation, Inc. for the unit and lump sum prices as bid, the total amount of the contract being $319,711.00.

4. The City Manager or her designee, is hereby authorized to execute contract change orders to the contract for this project and shall not exceed 10% of the Base Bid or $31,971.1 0 without prior approval of this City Council.

5. The construction budget for this project, which includes the construction contract and contingency costs , shall not exceed approximately $351,682.10.

6. This resolution is effective immediately upon adoption .

This forgoing resolution is hereby approved at a regular meeting of the City Council of the City of Reedley held on the 12th day of September 2023, by the following vote:

AYES: Tuttle, Byers , Fa st, Friesen , Be t a nc ourt.

NOES: None.

ABSTAIN : None.

ABSENT: None .

R~thie Greenwood, City Clerk
RESOLUTI ON NO. 2023-065
£(~ lfrl:iut(;tr_dC Anita Bentanc urt, Mayor
E Street Reconstruction CBDG 21571
Bid Tabulation Emmet Valley Construction Terra West Construction, Inc. RJ Berry Jr, Inc. Agee Construction Dave Christian Construction Item No. Description Quantity Units Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total

BASE BID
1 Mobilizalion 1 LS $ 5,000.00 $ 5,000.00 $ 29,000.00 $ 29,000.00 $ 34,000.00 $ 34,000.00 $ 45,000.00 $ 45,000.00 $ 9,000.00 $ 9,000.00 2 Insurance and Bonds 1 LS $ 2,000.00 $ 2,000.00 $ 9,000.00 $ 9,000.00 $ 4,100.00 $ 4,1 00.00 S 600.00 $ 600.00 $ 6,000.00 $ 6,000.00 3 Provide and Mainlain Traffic Control 1 LS $ 6,800.00 S 6,800.00 $ 12,000.00 S 12,000.00 s 10,000.00 S 10,000.00 S 32,000.00 $ 32,000.00 $ 25,000.00 $ 25,000.00 4 Dusi Conlrol and BMP Compliance 1 LS $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 10,000.00 S 10,000.00 $ 5,000.00 $ 5,000.00 $ 4,800.00 $ 4,800.00 5 Roadway Excavation and Grading (F) 3,040 CY $ 1000 $ 30,400.00 $ 17.00 $ 51 ,680.00 5 20.00 $ 60,800.00 $ 25.00 $ 76,000.00 $ 14.35 $ 43,624 .00 6 Hot Mix Asphalt Concrele, Type A 750 TN $ 106.00 $ 79,500.00 $ 120.00 $ 90,000.00 s 110.00 $ 82,500.00 $ 133.00 $ 99.750.00 $ 122.00 $ 91,500.00 7 Aggregale Base, Class 2 1,750 TN $ 37.00 $ 64,750.00 $ 35.00 $ 61,250.00 $ 40.00 $ 70,000.00 $ 45.00 $ 78,750.00 $ 33.00 $ 57,750.00 8 Saw-cutting 724 LF $ 3.00 $ 2,172.00 $ 2.00 $ 1,448.00 $ 2.00 $ 1,448.00 $ 5.00 $ 3,620.00 $ 4.00 S 2,896.00 9 Concrele Removal and Disposal (F) 95 CY $ 137.00 $ 13,015.00 $ 220.00 $ 20,900.00 $ 160.00 $ 15,200.00 $ 268.00 $ 25,460.00 $ 130.00 $ 12,350.00 10 12' Radius Curb Return 4 EA $ 2,450.00 S 9,800.00 $ 2,700.00 $ 10,800.00 $ 2,800.00 $ 11,200.00 $ 3,800.00 $ 15,200.00 $ 2,200.00 $ 8,800.00 11 ADA Ramp 1 EA $ 2,400.00 $ 2,400.00 $ 2,600.00 $ 2,600.00 $ 3,800.00 $ 3,800.00 $ 3,800.00 $ 3,800.00 $ 3,900.00 $ 3.900.00 12 Curb and Gutter 451 LF $ 44.00 $ 19,844.00 $ 43.00 $ 19,393.00 $ 48.00 $ 21,648.00 $ 47.00 $ 21,197.00 S 37.00 $ 16,687.00 13 Concrete Sidewalk 1,690 SF $ 7.00 $ 11,830.00 $ 9.50 $ 16,055.00 $ 11.00 $ 18,590.00 S 9.50 $ 16,055.00 $ 8.00 $ 13,520.00 14 Commercial Driveway Approach 6 l:A s 4,000.00 5 24,000.00 $ 5,700.00 $ 34,200.00 $ 5,500.00 $ 33,000.00 S 4,500.00 S 27,000.00 $ 4,900.00 $ 29,400.00 15 Residenlial Driveway Approach 3 EA $ 2,000.00 S 6,000.00 S 1,800.00 $ 5,400.00 $ 2,600.00 S 7,800.00 S 3,000.00 $ 9,000.00 $ 2,500.00 $ 7,500.00 16 Pavemenl Delineation and Signage 1 LS $ 10,200.00 $ 10,200.00 S 9,000.00 S 9,000.00 $ 10,000.00 $ 10,000.00 $ 14,000.00 $ 14,000.00 $ 11,000.00 $ 11,000.00 17 Storm Drain Catcll Basin, Piping, and Appurlenances 1 LS $ 17,000.00 $ 17,000.00 S 9,000.00 S 9,000.00 $ 6,000.00 S 6,000.00 $ 5,000.00 $ 5,000.00 $ 8,500.00 $ 8,500.00 18 Sidewalk Drain 1 EA $ 1,500.00 $ 1,500.00 S 600.00 S 600.00 $ 1,000.00 S 1,000.00 $ 3,300.00 S 3,300.00 $ 1,650.00 $ 1,650.00 19 Adjusl Manhole Frame and Cover lo Grade 2 EA $ 1,500.00 $ 3,000.00 $ 1,700.00 S 3,400.00 1 $ 1,500.00 $ 3,000.00 $ 2,400.00 $ 4,800.00 $ 1,600.00 $ 3,200.00 20 Miscellaneous Facilities and Oper~lions 1 LS $ 8,500.00 $ 8,500.00 $ 6,000.00 S 6,000.00 $ 5,000.00 $ 5,000.00 $ 24,000.00 $ 24,000.00 $ 2,500.00 $ 2,500.00 Total for BASE BID : $ 319,711.00 $ 393,726.00 $ 409,086.00 $ 509,532.00 $ 359,577.00 Subcontractor ; Concrele Madera Concrele Madera Concrele Fresno Concrete Con I. Inc Madera Concrele Fresno Concrele Construclion, Inc.

T raffle Conlrol Safely Nelwork KRC Safety Company Inc.

Striping Fresno Seal & Stripe Fresno Seal & Slripe Safely Striping Service Inc Chrisp Company Safely Slriping Service Inc Note: 1 M atherr,aLi cdl Error
DATE: January 23, 2024

REEDLEY CITY COUNCIL
~ Consent Calendar
D Regular Item
D Workshop
D Closed Session
D Public Hearing
ITEM NO: {L) ----
TITLE: ADOPT RESOLUTION NO. 2024-008, ACCEPTING THE CONSTRUCTION IMPROVEMENTS FOR CDBG PROJECT NO. 21571, E STREET

RECONSTRUCTION FROM TENTH STREET TO TWELFTH STREET, AND

AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION WITH

THE COUNTY OF FRESNO RECORDER'S OFFICE
PREPARED: Linda Xiong LX
Assistant Engineer
SUBMITTED: Marilu Morales , \ , \
City Engineer,._}-A.Y~
APPROVED: Nicole Zieba
City Manage

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2024-008, accepting the construction improvements for CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street, and authorize the City Engineer to file a Notice of Completion with the County of Fresno Recorder's Office.

EXECUTIVE SUMMARY
On April 25, 2023, City staff conducted the bid opening for the CDBG Project No. 21571 E Street Reconstruction Project (Project). Due to delays in receiving environmental clearance, the project award was delayed approximately five months. A "Notice of Award" was issued to the lowest responsible bidder, Emmett Valley Construction on September 13, 2023. The first working day on this contract was November 6, 2023. The time of completion for the Project was 35 working days and the Project was completed within the timeframe.

There were five (5) change orders requested and issued on the Project for changing the structural section of 11th Street, unforeseen field conditions encountered during construction , including dig out of wet subgrade and concrete slab, modified signage and striping to accommodate ADA ramp improvements, correct steep grades coming into the intersection of E and 11 th Street, and bid quantity adjustments. The total for all change orders equaled $98,557.64 or a 30.8% increase from the original contract amount. On January 23, 2024, the City Council received Resolution 2024-006

Page 1 of 2 ends

requesting to ratify an increase to the original contract due to steep slopes on 11 th Street that resulted in a change order request exceeding the original 10% contingency authorized by City Council. The contract change orders were approved by the City Manager and paid for with Community Development Block Grant funds. The final construction contract for the Project with the change orders totaled $418,268.64. The contractor has completed all contract items to the satisfaction of the City Engineer.

Resolution 2024-006 replaced Resolution No. 2023-065 and increased the construction amount to $383,521. Steep slopes on 11 th Street resulted in a change order request exceeding the original contract amount therefore, Resolution No. 2024-007 was taken to City Council to amend the 2023- 2024 fiscal year's budget and appropriate available funds to the Project in the amount of $68,227 utilizing CDBG funding.

FISCAL IMPACT
There is no fiscal impact with regard to the recordation of a Notice of Completion for the Project.

ATTACHMENTS

1. Resolution No. 2024-008

2. Notice of Completion

Page 2 of 2 ends

RESOLUTION NO. 2024-008

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REEDLEY

ACCEPTING THE CONSTRUCTION IMPROVEMENTS FOR CDBG PROJECT NO. 21571, E STREET RECONSTRUCTION FROM TENTH STREET TO

TWELFTH STREET, AND AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE

OF COMPLETION WITH THE COUNTY OF FRESNO RECORDER'S OFFICE WHEREAS, the CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street Project has been completed per the plans and specifications; and WHEREAS, there are no outstanding matters with the contractor regarding construction items; and WHEREAS, on January 23rd , 2024 the City held a public meeting at the City of Reedley Council Chamber, at 845 "G" Street to consider acceptance of the construction improvements.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Reedley using their independent judgment hereby resolves as follows:

1. The above recitals are true and correct and incorporated herein by reference.

2. The City Council using their independent judgment, hereby accepts the subject improvements.

3. The City Council hereby accepts the subject project for maintenance in accordance with the provisions of the contract and applicable ordinances and policies.

4. The City Council approves the Notice of Completion for the construction improvements for the CDBG Project No. 21571, E Street Reconstruction from Tenth Street to Twelfth Street Project, and hereby authorizes the City Engineer to transmit the attached Notice of Completion to the Fresno County Recorder's Office.

5. This resolution is effective upon adoption.

This foregoing resolution is hereby approved and adopted by the City Council of the City of Reedley on this 23rd day of January 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Anita Betancourt, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
RECORDING REQUESTED BY:

AND FOR THE BENEFIT OF,
City of Reedley
No Fee-Gov It. Code Sections
6103 and 27383
WHEN RECORDED, MAIL TO:

City of Reedley
Engineering Department
1733 9th Street
Reedley, CA 93654

SPACE ABOVE THIS LINE FOR RECORDER'S USE

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion.

Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is: City of Reedley

3. The full address of the owner is: 845 "G" Street, Reedley, CA 93654

4. The nature of the interest or estate of the owner is: City of Reedley Right-of-Way

5. A work of improvement on the property hereinafter described was completed on: January 23, 2024. The work done was: E Street Reconstruction, Community Development Block Grant No. 21571

6. The name of the contractor, if any, for such work of improvement was: Emmett Valley Construction

7. The property on which said work of improvement was completed is in the City of Reedley, County of Fresno, State of California, and is described as follows: Public right-of-way within the City of Reedley along E Street between 10th Street and 12th Street

8. The street address of said property is: N/A

9. Resolution No. 2024-008, Attached Hereto and Made a Part Hereof.

City of Reedley
Dated: ____________ _
Marilu S. Morales, P.E. , City Engineer

VERIFICATION
I, the undersigned, say: I am the City Engineer for the City of Reedley, the declarant of the foregoing notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
-Marilu S. Morales
(PERSONAL SIGNATURE OF THE INDIVIDUAL WHO IS SWEARING THATTHE CONTENTS OF THE NOTICE OF COMPLETION ARE TRUE.) Executed on _______________ , 2024, at _R_e_ed_le_y....._, ____ Ca_l_ifo_r_ni_a __________ _ (DATE) (CITY) (STATE)

REEDLEY CITY COUNCIL
DATE: January 23, 2024
D Consent
D Regular Item
D Workshop
D Closed Session
~ Public Hearing
ITEM NO: 1 ----
TITLE: INTRODUCTION AND FIRST READING OF ORDINANCE 2023-010 REPEALING AND REPLACING CHAPTER 1 OF TITLE 4 OF THE

REEDLEY MUNICIPAL CODE PERTAINING TO SOLID WASTE

REGULATIONS
SUBMITTED: Heather Kredit, Senior Management Analys~
REVIEWED: Russ Robertson, Public Works Director
APPROVED: Nicole R. Zieba, City Manager ~

RECOMMENDATION
Staff recommends that the City Council hold a Public Hearing on the introduction and first reading of Ordinance No. 2023-010, pertaining to Chapter 1 of Title 4 of the Reedley Municipal Code concerning solid waste regulations.

EXECUTIVE SUMMARY
Title 4, Chapter 1 Section 2, of the Reedley Municipal Code pertaining to Solid Waste was last updated in July of 2021. In 2021, the City entered into an exclusive franchise agreement with Mid Valley Disposal for the collection of solid waste. With that franchise agreement, the City allowed solid waste disposal businesses who held a current City business license to continue to provide temporary roll-off service within the City limits for a period of five (5) years.

In the subsequent period since the agreement was executed several companies have been operating illegally within the city limits. The majority of these companies have ignored repeated notifications and warnings from City staff that they are not eligible to operate within the City limits. Staff now feels it is necessary to strengthen enforcement language within the Ordinance to address the issue. Staff will continue to provide proper notifications and warnings to illegal service providers, however should those warnings be ignored the City will have the legal right to impound the illegal roll-off container. All costs associated with the impound of the container will be the responsibility of the owner of the illegal container.

Page 1 of 2 ends

In Section 4-1-1, the definition of a "Solid Waste Container" has been added for clarification.

In Section 4-1-14, Item F has been added to allow for impounding prohibited solid waste containers.

PUBLIC NOTICING
A Notice of Public Hearing was published in the Mid-Valley Times on December 21, 2023.

FISCAL IMPACT
None

ATTACHMENTS

1. Ordinance No. 2023-010, An Ordinance of the City Council of the City of Reedley Repealing and Replacing Chapter 1 of Title 4 of the Reedley Municipal Code pertaining to Solid Waste regulations.

Page 2 of 2 ends

ORDINANCE NO. 2023-010

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REEDLEY AMENDING SECTIONS 4-1-1 AND 4-1-14 OF CHAPTER 1 OF TITLE 4 OF THE

REEDLEY MUNICIPAL CODE CONCERNING SOLID WASTE
The City Council of the City of Reedley does ordain as follows:

SECTION 1. Section 4-1-1 ("Definitions") of Chapter 1 ("Solid Waste") of Title 4 ("Health and Sanitation") of the Reedley Municipal Code is hereby amended to add the following definition:

SOLID WASTE CONTAINER: Any container used for the disposal, collection, or storage of garbage, trash, or recyclables, including, but not limited to, roll-off containers and their equivalents.

SECTION 2. Section 4-1-14 ("Enforcement") of Chapter 1 ("Solid Waste") of Title 4 ("Health and Sanitation") of the Reedley Municipal Code is hereby amended to read as follows:
4-1-14: ENFORCEMENT
A. Violation of any provision of this chapter shall constitute grounds for issuance of a Notice of Violation and assessment of a fine by the City Public Works Director, City Code Enforcement Officer, or representative. Enforcement Actions under this chapter include but are not limited to issuance of a civil citation and assessment of a fine pursuant to Title 1 Chapter 4 of the Reedley Municipal Code. Any violation of this chapter may also be enforced pursuant to any other remedy at law or in equity.

1. Responsible Entity for Enforcement:
a. Enforcement pursuant to this ordinance may be undertaken by the City Public Works Director, City Code Enforcement Officer, or a County Agency Public Official, if so designated.
b. City Public Works Director will interpret ordinance; determine the applicability of waivers, if violation(s) have occurred; implement Enforcement Actions; and, determine if compliance standards are met. c. City Public Works Director may issue Notices of Violation(s).

B. Process for Enforcement.

1. City Public Works Director and/or Designee will monitor compliance with the ordinance randomly and through Compliance Reviews, Route Reviews, investigation of complaints, and an Inspection program (that may include Remote Monitoring). Section 4-1-13 establishes City's right to conduct Inspections and investigations.

2. City may issue an official notification to notify regulated entities of its obligations under the ordinance.

3. City may issue a Notice of Violation requiring compliance within sixty (60) days of issuance of the notice.

4. Absent compliance by the respondent within the deadline set forth in the Notice of Violation, City may commence an action to impose penalties, via a Civil citation and fine as set forth herein.
a. Civil Penalty Amounts for Types of Violations. The amount of civil penalties for each volition shall be as adopted by resolution of the City Council that is consistent with the applicable requirements prescribed in Government Code Sections 53069.4, 25132, and 36900.

C. Education Period for Non-Compliance. Beginning January 1, 2022, and through December 31 , 2023 , City will conduct Inspections, Remote Monitoring, Route Reviews or waste evaluations, and Compliance Reviews, depending upon the type of regulated entity, to determine compliance, and if the City determines that Organic Waste Generator, Self-Hauler, hauler, Tier One Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance, it shall provide educational materials to the entity describing its obligations under this ordinance and a notice that compliance is required by January 1, 2022, and that violations may be subject to administrative civil penalties starting on January 1, 2024.

D. Civil Penalties for Non-Compliance. Beginning January 1, 2024, if the Jurisdiction determines that an Organic Waste Generator, Self-Hauler, hauler, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this ordinance, it shall document the noncompliance or violation, issue a Notice of Violation, and if necessary, take Enforcement Action consistent with violations of the City of Reedley Municipal Code. At the discretion of the Public Works Director, the City may also use the other remedies available within the Reedley Municipal Code.

E. Compliance Deadline Extension Considerations. The Jurisdiction may extend the compliance deadlines set forth in this chapter if it finds that there are extenuating circumstances beyond the control of the respondent that make compliance within the deadlines impracticable, including the following:

1. Acts of God such as earthquakes, wildfires, flooding, and other emergencies or natural disasters;

2. Delays in obtaining discretionary permits or other government agency approvals; or,
2 3. Deficiencies in Organic Waste recycling infrastructure or Edible Food Recovery capacity and the Jurisdiction is under a corrective action plan with CalRecycle pursuant to Cal. Code Regs., tit. 14, section 18996.2 due to those deficiencies.

F. Impounding Solid Waste Containers.

1. Solid Waste Containers Subject to Impound. Any solid waste container within the City that is not provided by the appropriate solid waste franchisee may be impounded in accordance with this section.

2. Notice. The Public Works Director, City Code Enforcement Officer, or representative, shall cause a notice to remove to be posted on the solid waste container in violation of the provisions of this chapter. The notice to remove shall specify that the solid waste container must be removed from the premises within three (3) calendar days from the date the notice is posted on the container, or it will be removed and stored by the City and the contents may be disposed of at the expense of the owner of the container. The notice shall indicate: (a) the date and time that the notice was posted; (b) the name and telephone number of a person designated by the City to hear any appeal or challenge to the requirement that the container be removed; ( c) that any appeal of the order for removal must occur within three (3) calendar days of the posting of the notice; and (d) that failure to claim the removed solid waste container within forty-five (45) days shall constitute abandonment and subject the container to disposal (60 days if owner is unknown).

Notice shall also be provided to the owner of the property upon which the solid waste container is located, or otherwise posted in a conspicuous place on the applicable business or residence. Notice shall also be mailed, by certified mail, to the owner of the solid waste container if the owner's mailing address or contact information is readily available and legible on the solid waste container or otherwise known to the Public Works Director, City Code Enforcement Officer, or representative.

3. Removal. If the solid waste container is not removed within three (3) calendar days of the notice to remove, the Public Works Director, City Code Enforcement Officer, or representative may direct the removal and storage of the solid waste container and the disposal of its contents. The City may employ the services of its solid waste franchisee(s) or any other contractor to remove said container(s). Any person whose duty it is to remove and store solid waste containers may enter upon private property with the consent of the owner or other person in charge of the premises, or by authority of a warrant, or without consent or a warrant if exigent circumstances exist.

4. Appeal. The owner of the solid waste container may request a hearing within five (5) business days of the removal of the solid waste container to appeal the City's determination that the container is an unauthorized container subject to removal.

The hearing will be conducted pursuant to the requirements under section 1-12-7. 3 If the appeal is granted, any payments due to City shall be forgiven and any amounts paid reimbursed.

5. Storage. If no appeal is made, and after a solid waste container is removed and placed in storage, the Public Works Director, City Code Enforcement Officer, or representative, shall send by first class mail, postage prepaid, to the owner of the solid waste container, a notice to claim the stored container, if the identity of the owner of the solid waste container is known. The Public Works Director, City Code Enforcement Officer, or representative, shall make reasonable efforts to identify the owner of a stored solid waste container. If the solid waste container is not claimed within forty-five ( 45) days after mailing of the notice to the owner, or sixty ( 60) days after the container is removed, if the owner is not known, the solid waste container shall be deemed abandoned property and may be disposed of accordingly.

6. Release. No solid waste container shall be released to its owner unless the owner has paid the City for the actual costs of the removal, storage and disposal of contents, plus any administrative fees, fines or penalties established by resolution of the City Council. All amounts due to the City shall constitute a debt owed to the City by the owner of the solid waste container.

SECTION 3. This Ordinance shall take effect thirty (30) days after its adoption. This Ordinance is intended as a restatement and clarification of existing law regarding the City's and property owners' rights and obligations related to cost recovery and attorney's fees and is expressly made retroactive and shall apply to any currently pending code enforcement matters within the City.

SECTION 4. The City Clerk is directed to cause this ordinance or a summary of this ordinance to be published once in a newspaper of general circulation published and circulated within the City of Reedley, within fifteen (15) days after its adoption. If a summary of the ordinance is published, the City Clerk shall cause a certified copy of the full text of the proposed ordinance to be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which the ordinance is adopted and again after the meeting at which the ordinance is adopted. The summary shall be approved by the City Attorney.

II
II
II
II
II
II
4 The foregoing ordinance was introduced at a regular meeting of the City Council held on January 23, 2024, and was adopted at a regular meeting of said Council held on February 13 , 2024, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Anita Betancourt, Mayor
ATTEST:

Ruthie Greenwood, City Clerk
5 Reedley's River City Theatre Company
Report to the City of Reedley
Peter Allwine
January 9th 2024
• Septem her 2023
- September 16th - Matilda the Musical, the Opera House's final show of the 2023 season holds auditions.
- September 29th -RCTC opens Murder at the Opera House, an original murder mystery play written by a local author. It is a dinner show that featured three dinner options and was a great success for the Opera House, so much so that dinners are added back to the 2024 season on Friday and Saturday nights.
• October 2023
- October 2nd - Matilda the Musical begins rehearsal at the Opera House. - October 14th - Murder at the Opera House closes. Running for 3 weeks, the production had 469 people attend the 6 performances, the show only running on Friday and Saturday nights. Dinner was served and the show was a success.
- October 14th - RCTC holds the annual pancake breakfast on Fiesta weekend at the Opera House. It is not as well attended as the year prior, but plans are in place for better marketing to ensure it is better attended next year.
- October 15th - RCTC begins the process of renovating the Opera House chairs in partnership with the City of Reedley. The chairs are over 70 years old, and were taken and sanded down, re-stained, and given new cushioning and a new seat cover and seat back. They leave the Opera House 20 or so at a time and the turnaround time is about two weeks to get the chairs finished. The front doors are also removed to be re-stained as well.
- October 31 st - The Opera House hosts a school tour of the Opera House, highlighting the history of the building to two KCUSD classes. • November 2023
- November 10th - The front doors of the Opera House are returned and put back on. They are stained black to match the chairs, and patrons have commented how wonderful they look.
- November 11 th - Jeremy "Elvis" Pearce hosts two nights of shows at the Opera House. Both shows are sold out. Dinner was served Saturday night and a dessert show was Sunday. Both were very successful for the Opera House and we look forward to his return in March.
- November 19th - The Opera House hosts an afternoon of bluegrass music with the Uncle Ephus Band, a fundraiser for the RCTC. It is sparsely attended, and will be looked at to possible not continue next year. - November 30th - RCTC hosts Washington Expanded Leaming Program to the final dress rehearsal of Matilda the Musical. 75 school children attended the show, had dinner and dessert, and enjoyed the first act of the show. It was well attended, and the children had a wonderful time. • December 2023
- December 2nd - Matilda the Musical opens at the Opera House. - December 2nd - The last of the chairs to be refurbished come back to the Opera House. All chairs have been completely refurbished and are looking and feeling brand new.
- December 17th - Matilda the Musical closes at the Opera House. 965 people attended the production, which was a smash hit. 22 children were involved in the production, from local schools and the surrounding community, and the show had a very, very successful run. - December 20th - The Opera House hosts the KCUSD Preschool Christmas Program. The Christmas program was very cute and well attended.

ASSETS
Current Assets
Bank Accounts
Box Office Till
Checking RCTC
RCTC Savings ·- . ··-·------------
Total Bank Accounts
Other Current Assets
Undeposited Funds
Total Other Current Assets
Total Current Assets
Fixed Assets
Furniture, fixtures, & equip
Total Fixed Assets

TOT AL ASSETS

LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Other Current Liabilities
Payroll Liabilities
Sales Tax Payable
Total Other Current Liabilities
Total Current Liabilities
Total Liabilities
Equity
Opening Bal Equity
Retained Earnings
Retained Earnings Adjustments
Net Income
Total Equity

TOT AL LIABILITIES AND EQUITY
Reedley River City Theatre Company
Balance Sheet
As of October 31 , 2023
Cash Basis Tuesd='ly Jaruary 16 20'2-l 1)7 5 3 P1\1l Gi\lT-08·Q0 TOTAL
-45.00
-3,926.28
6,912.22
$2,940.94

0.00 $0.00
$2,940.94
4,167.60 ---·
$4,167.60
$7,108.54

0.00 -8,886.83
$-8,886.83
$ -8,886.83
$-8,886.83

0.00 15,518.49
16,386.73
-15,909.85
$15,995.37
$7,108.54
1/1
Income
Annual Membership Sponsors
Kids Camp
Pancake Breakfast Sales
Production Income
Bar Sales
Dessert Sales
Production Sponsor
Season Tickets
Ticket Sales
Total Production Income
Rental Income
Total Income

GROSS PROFIT
Expenses
Advertising
Bank/Credit Card Fees
Food/Beverage
Bar
Desserts
Dinners
Food/Beverage/Kitchen Supplies ·- -
Total Food/Beverage
Insurance
Liability Insurance
Worker's Comp Insurance
Total Insurance
Office
Equipment
Phone/Internet Services
Printing
Supplies
Ticket Processingrfheatermania
Total Office
Pancake Breakfast Expenses
Payroll Expenses
Payroll Taxes Expense
Salaries Expenses
Wages Expense
Total Payroll Expenses
Reedley River City Theatre Company
Profit and Loss
November 2022 - October 2023
Cash Basis Tuesday January t 3 2021 07·5 c. PM c;~; T-03 O) TOTAL
296.35
1,100.00
602.00
3,500.00
3,334.85
11 ,047.00
10,000.00
240.00
56,480.56
84,602.41
1,875.00
$88,475.76
$88,475.76
1,401.47
877.93
207.22
3,319.21
9,787.00
1,989.69
15,303.12
3,287.00
1,037.02
1,776.00
6,100.02
11 .15
3,079.13
2,747.38
470.32
1,942.75
8,250.73
550.44
2,372.97
1,335.34
20,522.37
8,294.49
32,525.17
112
Production Expenses
AudioNideo/Batteries
Choreography
Costumes
Crew
Direction
Music Production
Music Staff
Other Production
Props
Royalities/Rights
Sets
Total Production Expenses
Professional Fees
Accounting
Consulting
Total Professional Fees
Rent Expense
Opera House
Storage
Total Rent Expense
Repairs and Maintenance
Disposal
Supplies
Water
Total Repairs and Maintenance
Taxes,Licenses,Fees
CA Sales Tax
Total T axes,Llcenses,Fees
Reedley River City Theatre Company
Profit and Loss
November 2022 - October 2023
Unapplied Cash Bill Payment Expense
Total Expenses

NET OPERATING INCOME
Other Income
Contributions
50/50 Raffle
Total Contributions
Total Other Income

NET OTHER INCOME

NET INCOME
Cash Basis Tuesday. January 16. 2024 07:5'2 PM G!VlT-08:00 TOTAL
119.99
338.24
350.00
1,330.83
800.00
3,100.00
982.00
150.00
2,086.10
2,328.21
6,482.87
831.69
18,899.93
329.85
952.50
1,282.35
12,600.00
1,003.74
13,603.74
1,452.42
2,709.70
1,077.01

92.31 5,331.44
4,487.14
248.00
4,735.14

0.00 $108,861.48
$-20,385.72
4,475.87
4,475.87
$4,475.87
$4,475.87
$-15,909.85
2/2
Income
Annual Membership Sponsors
Production Income
Bar Sales
Dessert Sales
Dinner
Production Sponsor
Season Tickets
Ticket Sales
Total Production Income
Total Income

GROSS PROFIT
Expenses
Advertising
Bank/Credit Card Fees
Event Entertainment
Food/Beverage
Bar
Desserts
Dinners
Food/Beverage/Kitchen Supplies
Total Food/Beverage
Insurance
Liability Insurance
Worker's Comp Insurance
Total Insurance
Office
Equipment
Phone/Internet Services
Printing
Supplies
Ticket Processing/Theatermania
Total Office
Pancake Breakfast Expenses
Payroll Expenses
Salaries Expenses
Wages Expense
Total Payroll Expenses
Reedley River City Theatre Company
Profit and Loss
November - December, 2023
Ccish Basis Tuesday January 16, '2024 07:5:3 PM GMT-08:00 TOTAL

96.35 924.35
-17.50
562.50
7,500.00
2,294.00
22,405.56
33,668.91
$33,765.26
$33,765.26
605.68
288.71
1,930.00
903.32
1,035.09
8,577.50
216.17
10,732.08
174.00
436.00
610.00

7.25 187.89
459.04

14.71 1,104.45
1,773.34

76.45 6,049.80
3,093.84
9,143.64
1 .:.

Production Expenses
AudioNideo/Batteries
Choreography
Costumes
Crew
Direction
Music Production
Other Production
Props
Royalities/Rights
Sets
Total Production Expenses
Professional Fees
Accounting
Legal Fees
Total Professional Fees
Rent Expense
Opera House
Storage
Total Rent Expense
Repairs and Maintenance
Disposal
Supplies
Total Repairs and Maintenance
Taxes,Licenses,Fees
CA Sales Tax
Total T axes,Licenses,Fees
Reedley River City Theatre Company
Profit and Loss
November - December, 2023
Unapplied Cash Bill Payment Expense
Total Expenses

NET OPERATING INCOME
Other Income
Contributions
50/50 Raffle
Production Donation
Total Contributions
Total Other Income

NET OTHER INCOME

NET INCOME
TOTAL
412.68
250.00
521 .92
300.00
1,000.00
225.00
125.00
1,039.00
2,724.47

1.118.69
7,716.76

33.48 103.49
136.97
2,100.00
359.19
2,459.19
350.00
521.29
276.07
1,147.36

41.01 41.01

0.00 $36,661.19
$ -2,895.93
1,448.00
500.00
1,948.00
$1,948.00
$1,948.00
$-947.93
REEDLEY TRAFFIC SAFETY COMMISSION MEETING FOR August 31, 2023 The meeting of the Reedley Traffic Safety Commission was held Thursday, August 31 , 2023 in the City of Reedley Council Chambers, 845 "G" Street, Reedley. Chairman, Dale Kennedy called the meeting to order at 5:32 p.m.

ROLL CALL
Commissioners Present: Dale Kennedy, Tim Jantzen, Todd Lowery, and Andrea Serrano.

Commissioners Excused: Esther Ramos
City Staff Present: Marilu Morales, City Engineer and Angelina Barajas, Administrative Assistant.

PUBLIC DISCUSSION:

None.

APPROVAL OF MINUTES
Commissioner Jantzen motioned, Commissioner Lowery seconded, to approve the minutes of the Meeting on August 31 , 2023. Motion Carried by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Lowery, Jantzen, Kennedy, and Serrano.

None.

Ramos.

OLD BUSINESS
None.

NEW BUSI NESS
2a. Sergeant Lowery motioned, Commissioner Jantzen seconded, to deny staff recommendation to install a twoway stop application on C Street at the intersection of 10th and C Street.

COMMISSION/ STAFF COMMENTS/ REPORTS

1. City Engineer, Marilu Morales mentioned upcoming projects- Manning Phase 3, E Street Reconstruction , 11 th Street, Starbucks, North, Hollywood, and Acacia Avenues, Olson to WWf P, Traffic Signal light on Reed Avenue, Dinuba Avenue, Burger King, UHC, Car Wash (Surf Thru), Commercial lot on San Rio. She also mentioned a possible future item for no left turn during specific hours at Silas Bartsch School.

ADJOURNMENT
The meeting adjourned at 6:25 p.m.

ATTEST:
:!I:: \D

MINUTES

REEDLEY AIRPORT COMMISSION MEETING
Thursday, September 21, 2023 at 4:00 p.m.

1. CALL TO ORDER
A meeting of the Reedley Airport Commission was held at the Reedley Community Center, 100 N. East Avenue, Reedley, California and called to order by Carl Smith at 4:03 p.m.

2. ROLL CALL AND INTRODUCTION OF GUESTS
A. Commissioners Present: Carl Smith, Chairperson; Butch Agrifoglio; Vice Chairperson; Matt Cochran, Anthony Jewell (arrived at 4:04pm) B. Commissioners Absent: Joseph Oldham;
C. Staff Present: Sarah Reid, Airport Manager; Kayla Cheney, Administrative Assistant D. Others Present: Joseph Woosley, Jaime Luque

3. AGENDA APPROVAL -ADDITIONS AND/OR DELETIONS
A. Motion by Commissioner Agrifoglio, seconded by Commissioner Cochran to approve the September 21 agenda. Motion carried.

4. APPROVAL OF MINUTES
A. Motion by Commissioner Agrifoglio, seconded by Commissioner Cochran to approve the June 15, 2023 and August 17, 2023 Airport Commission minutes. Motion carried.

5. PUBLIC DISCUSSION - None

6. UNFINISHED BUSINESS
A. 2023 Annual Airport BBQ- Reid shared a site map of the airport to the Commission. The Commission shared their input, a sitemap will be completed for the BBQ outlining where everything will be placed. Reid asked for Cheney to contact John Johnson to move his plane out of the first two rows of tiedown spaces. Reid shared STEM activities for kids will have an area. Reedley College will have their jet and an airplane on display. Joseph Woosley confirmed he will be marshaling the event. Reid stated setup will begin at 7:30am. Reid shared at the registration table forms for airplane rides and the simulator will be available for participants to sign.

Reid shared Robert Harris will emcee the event. Jaime Luque shared Reedley College students are available to help with the flight simulator, crowd control, and BBQing. 3-4 students will be able to BBQ from Reedley College. The Civil Air Patrol will be assisting with parking. Commissioner Jewell shared NJROTC will only be participating in the presentation of colors this year, arriving at 11 :15a.m., Jewell will communicate this information. Commissioner Jewell shared pastor Sam would be ideal for the invocation. Commissioner Cochran will reach out to Pastor Sam to confirm he is available and aware to arrive at 11 :15a.m. Cheney will arrange with Commissioner Jewell and Jess Hinojosa a day to pick 500 bottle waters up from Save Mart. Reid stated Michael Tomazin donated a 1-hour airplane ride that will be raffled off as an individual raffle for $5 a ticket. Cheney will create a certificate which will be presented once this raffle is complete. Reid shared Reedley College will have one pilot for airplane rides, Joseph Oldham confirmed he has three planes and pilots. Commissioner Jewell shared it would be nice to have a long bench for loading until participants get on the plane. Reid will confirm with the Civil Air Patrol to see how many volunteers they will have, and connect with Jaime Luque to see if Reedley College needs to bring more student volunteers out.
- 1 -

MINUTES

REEDLEY AIRPORT COMMISSION MEETING
Thursday, September 21 , 2023 at 4:00 p.m.

7. AIRPORT MANAGER REPORT
Reid shared there was an email received from an individual who has a power paraglider.

Commissioner Smith stated this individual has to provide an insurance for liability which this individual can get through the paraglider group. The Commission confirmed this individual will not be checking out a gate key. Commissioner Smith shared this individual has to use a radio to notify others of his patterns on channel 1.22.700. Reid shared there is nothing in the City ordinance for paraglider. Commiissioner Jewell stated there should be communication specific to calling in, specified in the City ordinance. Jaime Luque stated the paraglider needs to be communicating with air traffic.

Reid shared with the Commission the restroom is moving forward. Reid stated the company will be sending colors for the exterior of the building. The Commission did not have an opinion of the color for this building.

A. Capital Improvements - The FAA okay the list of projects submitted. The City is now going to try and fast track the design of the above ground fuel farm project. Reid requested a meeting with the FAA.

B. Weed Control - none
C. Landscaping/Parking - none
D. Public Relations/Airport Promotion - Staff will be working on a new newsletter after the annual airport BBQ
E. BMX Track -
F. Hangar Vacancies - none
G. Electric Planes/Charging Station - none
H. Reedley College - David Clark emailed Reid stating Reedley College will be scrapping, adding road base and spray a dust control agent on the area where the trailer and the student parking will be located. Clark would like to start next week.

Commissioner Jewell asked what grade of road base this will be. Reid asked if Jess Hinojosa can speak with the company laying this material down to confirm the exact material.

8. ADJOURNMENT
As there was no further business to discuss, it was moved by Commissioner Agrifoglio, seconded by Commissioner Cochran to adjourn at 5:09 p.m. ( ' I /
Caft
~£~ Smith, Chairperson
- 2 -
DATE: January 23, 2024

REEDLEY CITY COUNCIL
D Consent
D Regular Item
D Workshop
D ClosedSession
D Public Hearing
~ Receive/Review
ITEM NO: I) ----
TITLE: RECEIVE, REVIEW, AND FILE THE QUARTERLY INVESTMENT REPORT FOR 2nd QUARTER ENDING DECEMBER 31, 2023 FOR FISCAL YEAR 2023-24 SUBMITTED: Paul A. Melikian, Assistant City Manager
APPROVED: Nicole R. Zieba, City Manager

RECOMMENDATION
That the City Council receive, review, and file the Quarterly Investment Report for 2nd Quarter Fiscal Year 2023-24, ending December 31 , 2023, as required by the City's Investment Policy last adopted on January 10, 2023. No action is required other than to receive, review, and file the report.

EXECUTIVE SUMMARY
Portfolio earnings, net of fees, for 2nd quarter ending December 31, 2023 total $872,922. Prior 2nd quarter net portfolio earnings for the same 12-month period one year ago were ($182,561) reflecting a sharp turnaround in earnings due to higher interest rates . This year's Adopted Budget assumes $100,505 in interest earnings for the entire fiscal year; therefore, actual earnings for just the first quarter already exceed this estimate by $772,417. This is due to higher interest rates being earned on investments and the City currently being in a favorable cash position, so interest earnings are expected to be strong in the interim; however, the City has a large number of capital projects in the pipeline, so as the projects get underway the treasury pool amount and corresponding interest earnings will be reduced .

The Federal Reserve is continuing to tighten monetary policy, with recent sustained interest rate hikes to curb rampant inflation. On term investments, such as certificates of deposit, the City will be able to reinvest at higher rates and anticipates better portfolio performance going forward. In addition, on January 10, 2023, the City Council approved an important amendment to the City's Investment Policy that allowed the California Asset Management Program (CAMP) as a permissible investment option for the City's idle funds . Staff have since invested a portion of the City's treasury pool in CAMP with a balance of $15,586,146 as of December 31, 2023, and the current yield is 5.55%. The year end interest earnings are a bit understated because a portion of the amount invested with CAMP is in "term investments" (similar to a certificate of deposit) that do not formally report the interest earned until maturity later this fiscal year, which will further enhance earnings.

The attached investment/pooled cash report shows additional detail for cash balances by City fund. The 'treasury pool ' for the City, representing the cumulative balance of all funds, totals $29,152,120 as of December 31, 2023, which is $273,882 lower than last quarter ending September 30, 2023. The treasury pool from the same 12-month period one year ago was $26,201,804 as of December 31, 2022.

All financial investment instruments are constantly monitored and assessed for safety, liquidity and yield , It is important to note that the City's principal value of these investments are secure at all times, and the values that are being reported are the market values at a specific point in time. All investments in the portfolio are compliant with the City's current Investment Policy, and staff does not anticipate any issues with regard to the City's ability to meet expenditure requirements for the next six months. (Government Code section 53646)

BACKGROUND
The cash balances in the funds are at a point in time only, and do not reflect pending receivable or payable amounts. All financial investment instruments are constantly monitored and assessed for safety, liquidity and yield . The City's idle funds are currently in principal safe investments that protect its pooled cash, such as a money market account at Five-Star Bank, rolling Certificates of Deposit through Multi-Bank Securities in various FDIC insured accounts, and the California Asset Management Program.

On January 10, 2023 the City Council approved the annual statement of investment policy. The policy includes a self-imposed, 'best practice' reporting requirement to implement a Government Finance Officers Association (GFOA) recommendation that an agency's investment policy explicitly require periodic reporting. The attached Pooled Cash Report for the end of 2nd quarter fiscal year 2023-24 shows cash balances/market value and interest earnings for every cash account and investment vehicle as of December 31, 2023. It is important to note that the pooled cash report also includes restricted funds such as American Rescue Plan Act funds, deposits in trust, funds held for groundwater treatment, and RDA Successor Agency funds. Full account statements for all accounts are on file with the Administrative Services Department and available for inspection at any time.

Cash balances are pooled for investment and banking purposes, as it is not practical to have separate investment accounts for each City fund . Interest earnings are apportioned to each City fund based upon the percentage that a particular fund balance makes up of the total. For instance, if the City's General Fund balance was 10% of the total cash balances of the City, it would be credited with 10% of the investment interest earnings for the period.

ATTACHMENTS
2nd Quarter Fiscal Year 2023-24 Investment/Pooled Cash Report

Page 2 of 2 ends

POOLED CASH REPORT
December 2023

PETTY CASH / CASH REGISTERS

MECHANICS BANK CHECKING ACCOUNTS (OPERATING & PAYROLL)
CAMP - CALIFONIA ASSET MANAGEMENT PROGRAM*
MBS - MUL Tl BANK SECURITIES PORTFOLIO

FIVE STAR BANK MONEY MARKET

FIVE STAR BANK PUBLIC DONATION CHECKING ACCOUNT

ACTUAL CASH

BALANCE OR

PORTFOLIO MARKET
VALUE
$ 6,000
$ 503,756
$ 15,586,146
$ 11,782,287
$ 1,272,931
$ 1,000
2023-24 FYTD

INTEREST EARNINGS
$
$
$ 378,651
$ 474,861
$ 23,374
$
ACTUAL FYTD TOTAL CASH~ ALL FUNDS $ 29,152,120 $ 876,886 *Does not reflect accrued interest for TERM instruments Current Fiscal Year
2023-24 ALL FUNDS COMBINED ACTUAL FYTD INTEREST EARNINGS 2023-24 ALL FUNDS COMBINED ACTUAL FYTD BANK FEES
2023-24 ALL FUNDS COMBINED NET ACTUAL BANK INTEREST
2023-24 ALL FUNDS COMBINED BUDGETED INTEREST EARNINGS
2023-24 PERCENTAGE OF ACTUAL NET YTD INTEREST EARNINGS TO BUDGET Prior Fiscal Year Comparison - Same Period
2022-23 ALL FUNDS COMBINED ACTUAL FYTD INTEREST EARNINGS 2022-23 ALL FUNDS COMBINED ACTUAL FYTD BANK FEES
2022-23 ALL FUNDS COMBINED NET ACTUAL BANK INTEREST
2022-23 ALL FUNDS COMBINED BUDGETED INTEREST EARNINGS
2022-23 PERCENTAGE OF ACTUAL NET YTD INTEREST EARNINGS TO BUDGET $
$
$
$
$
$
$
$
876,886
(3,964)
872,922
100,505
868.536%
(177,352)
(5,209)
(182,561)
47,225
-386.577%

POOLED CASH REPORT
December 2023

FUND FUND NAME CASH BALANCE
001 General Fund $ (701,454)
002 General Fund Reserve Set Aside $ 3,802,805
003 Public Safety Sales Tax $ 1,237,909
005 Gas Tax $ (51,851)
006 General Fund Capital Set Aside $ 932,140
007 Street Projects Federal and State Funding $ (184,040) 010 LTF - Article 3 Sidewalks $ 67,846
011 LTF - Article 8 Streets $ 1,505,220
014 FCTA - Flexible Funding $ 797,406
015 FCTA - Americans with Disabilities Act (ADA) $ 15,639 016 FCTA- Street Maintenance $ 1,403,475
017 FCTA - Pedestrian and Trails $ 301,921
018 FCTA - Bike Facilities $ 77,759
022 SB2 Planning $ (16,174)
023 Road Repair Accountability Act $ 1,316,593
024 Community Development Block Grant (CDBG) $ 34,537
025 American Rescue Plan Act (ARPA) $ 1,578,443
027 Senior Nutrition FMAAA Program $ (13,804)
029 Public Education and Governmental Access (PEG) $ (11,788) 030 Landscape Lighting and Maintenance District $ 112,808 032 Community Facilities District $ (529,369)
034 Streetscape $ 18,788
038 Prop 68 Park Bonds $
041 Airport $ 467,162
047 Groundwater Treatment $ 1,160,943
048 Water Rate Stabilization $
049 Water Capital $ 923,441
050 Water $ 617,665
051 Sewer Capital $ 3,041,336
052 Sewer $ 2,047,094
053 Solid Waste $ 1,446,784
060 Equipment Shop ISF $ 77,298
065 Dental Benefit ISF $ 941
068 HR ISF $ 32,375
073 Deposits in Trust $ 502,883
075 COPS Program $ 114,868
078 CASp Certification $ 39,611
080 City Bond Funds $ 27,347
082 Blighted Properties $ (29,480)
100 DIF - Transportation $ 2,226,669
102 DIF - Law $ 50,108
103 DIF - Fire $ 341,090
104 DIF - Storm Drain $ 1,869,441
105 DIF - Wastewater Facilities $ 633,894
109 DIF - Parks & Recreation Facilities $ 816,692
110 DIF - General Government Facilities $ 43,034
111 DIF - Water Facilities $ 767,830
896 RDA Successor Low and Moderate Income Housing $ 77,379 897 RDA Successor Retirement $ 160,906
All Funds - Cash Total $ 29,152,120

REEDLEY CITY COUNCIL
DATE: January 23, 2024
D Consent
D Regular Item
D Workshop
D Closed Session
D Public Hearing
~ Receive/Review
ITEM NO: l2
TITLE: QUARTERLY EXPENSE & TRAVEL REPORT FOR ELECTED & APPOINTED OFFICIALS - OCTOBER 1, 2023 THROUGH DECEMBER 31, 2023
SUBMITTED: Paul A. Melikian, Assistant City Manager~
APPROVED: Nicole R. Zieba, City Manager ~ ..C::::::::::

RECOMMENDATION
It is recommended that the City Council receive and review the quarterly expense & travel report for elected and appointed officials as required by Resolution No. 2018-091 that established an Expense Reimbursement and Travel/Conference Policy for Elected and Appointed Legislative Body Officials.

EXECUTIVE SUMMARY
The Expense Reimbursement and Travel/Conference Policy for Elected and Appointed Legislative Body Officials provides that, official travel and credit card expense reports shall be provided quarterly to the City Council as a receive & review item on the Council's agenda.

Attached is a breakdown of City-paid travel and/or other expenses incurred by Elected and Appointed Legislative Body Officials for the period of October 1 through December 31, 2023.

BACKGROUND
It is in the best interests of the City that elected and appointed officials remain informed and trained in activities, developments and professional trends affecting the affairs of the City, and that attendance at institutes, hearings, meetings, conferences, or other gatherings is of value to the City and its citizens.

The Expense Reimbursement and Travel/Conference Policy applies to City Councilmembers and all appointed legislative body officials including Planning Commissioners, and other volunteer members of City boards, commissions, and committees.

The Policy is designed to provide guidance to elected and appointed legislative body officials on the use and expenditure of City resources, as well as the standards against which those expenditures will be measured, all in compliance with the requirements of AB 1234 (Government Code§§ 53232.2, 53233.3).

After being sworn in, any elected or appointed legislative official of the City is required to sign a statement formally acknowledging receipt and acceptance of the policy.

ATTACHMENTS
Quarterly Expense & Travel Report for Elected and Appointed Legislative Body Officials City of Reedley
Quarterly Expense & Travel Report for Elected and Appointed Legislative Body Officials
Reporting Period: October 1, 2023 - December 31, 2023
Name Item Description Amount
Mary Fast, Mileage Reimbursement for miles driven for $324.88 Councilmember official City Business
Parking Fee Reimbursement $10.00
Tony Jewell, Reimbursement of groceries and water $123.69 Airport Commissioner purchased for Airport BBQ
Total $458.57

Page 2 of 2 ends

REEDLEY CITY COUNCIL
D Consent
D Regular Item
D Workshop
D ClosedSession
D Public Hearing
[8J Receive/Review
DATE:

ITEM NO: \3
January 23, 2024
TITLE:

SUBMITTED:

APPROVED:

RECEIVE, REVIEW, & FILE 2022-23 AUDITED CITY FINANCIAL STATEMENTS Paul A. Melikian, Assistant City Manager ~
Lori Oken, Accounting Manager -~
Nicole R. Zieba, City Manager W

RECOMMENDATION
That the City Council receive, review and file the audited financial statements for the fiscal year ended June 30, 2023.

EXECUTIVE SUMMARY
The City has received an "Unmodified" audit report for its financial statements for fiscal year ending June 30, 2023, with no findings. An audit report is said to be unmodified when the Auditor concludes that the Financial Statements give a true and fair view in accordance with the financial reporting framework used for the preparation and presentation of the Financial Statements. An Auditor gives a 'Clean' opinion or Unmodified Report when they do not have any significant reservation in respect of matters contained in the Financial Statements.

This type of report is issued by an auditor when the financial statements presented are free of material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles (GAAP), which in other words means that the entities' financial condition, position, and operations are fairly presented in the financial statements. It is the best type of report an auditee may receive from an external auditor.

An Unmodified Report indicates the following:
• The Financial Statements have been prepared using the Generally Accepted Accounting Principles which have been consistently applied;
• The Financial Statements comply with relevant statutory requirements and regulations; • There is adequate disclosure of all material matters relevant to the proper presentation of the financial information subject to statutory requirements, where applicable; • Any changes in the accounting principles or in the method of their application and the effects thereof have been properly determined and disclosed in the Financial Statements.

ATTACHMENTS
Auditor Management Report for Fiscal Year Ended June 30, 2023 Audited Financial Statements for Fiscal Year Ended June 30, 2023

CITY OF REEDLEY

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2023

TABLE OF

CONTENTS
Required Communications 1 - 3
2 BRYANT L.JOLLEY

CERTIFIED PUBLIC ACCOUNTANTS
To the Honorable Mayor and City Council
City of Reedley, California
Bryant L.Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L Smith C.P.A.

Luis A. Perez C. P.A.

Lan T. Kimoto
We have audited the financial statements of the governmental act1v1t1es, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Reedley for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 24, 2019. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements.

No new accounting policies were adopted and the application of existing policies have not changed during 2023. We noted no transactions entered into by City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were:
• Management has determined the economic useful lives of fixed assets based on past history of similar types of assets, future plans as to their use, and other factors that impact their economic value to the City. We evaluated the key factors and assumptions used by management in computing depreciation expense and believe that it is reasonable in relation to the financial statements taken as a whole.
• Management's estimate of the allowance for doubtful accounts is based on an evaluation of collectability primarily focused on past due accounts. We evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that it is reasonable in relation to the financial statements as a whole. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 • Management's estimate of the net pension liability and related deferrals is based on actuarial valuations which include significant assumptions regarding discount rate, inflation, payroll growth, projected salary increases and investment rate of return. We evaluated the key factors and assumptions used to develop the liability and related deferrals in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management m performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of the audit.

Management Representations
We have requested certain representations from management that are included m the management representation letter dated January 9, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to City of Reedley's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
2 Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Reedley's auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, Schedule of Changes in the City's Net OPEB Liability and Related Ratios, Proportionate Share of Net Pension Liability, and Schedule of Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on supplementary information, as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of City of Reedley and is not intended to be, and should not be, used by anyone other than these specified parties.

January 9, 202~
3 CITY OF REEDLEY

INDEPENDENT AUDITOR'S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2023

CONTENTS

INDEPENDENT AUDITOR'S REPORT
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities
Statement of Revenue, Expenditures and Changes in
Fund Balance - Governmental Funds
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenue, Expense and Changes in Fund Net
Position - Proprietary Funds
Statement of Cash Flow - Proprietary Funds
Statement of Fiduciary Net Position - Custodial Funds
Statement of Changes to Fiduciary Net Position - Custodial Funds Statement of Fiduciary Net Position - Private Purpose Tmst Fund Statement of Changes in Fiduciary Net Position - Private Purpose Trust Fund Notes to Basic Financial Statements
1-3
4 5
6 7
8 9
10 11
12 - 13
14 15
16 17
18 - 51
C O N T E N T S (Continued)
Required Supplementary Information
Budgetary Comparison Schedule - General Fund 52
Budgetary Comparison Schedule -American Rescue Plan Act Special Revenue Fund 53 Budgetary Comparison Schedule - Development Impact Fees Capital Project Fund 54 Schedule of Changes in the City's Net OPEB Liability and Related Ratios 55 Schedule of the City's Proportionate Share of Net Pension Liability 56 Schedule of Contributions 57
Supplemental Only Information
Combining Balance Sheet- Nonmajor
Governmental Funds 58-60
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance - Nonmajor
Governmental Funds 61 - 63
Schedule of Net Revenue Available for Debt Service 64

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS 65 - 66

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 67 - 69
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
70 71
72 73
BRYANT L.JOLLEY

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and City Council
City of Reedley, California
Report on the Audit of the Financial Statements
Opinions
Bryant L J alley, C. P .A
Ryan P. Jolley C.P.A.

Darryl L Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Reedley (the "City"), California, as of and for the year ended June 30, 2023 , and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered mate1ial if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 52-54, the schedule of changes in the City's Net OPEB liability and related ratios on page 55, the schedule of the City's proportionate share of net pension liability on page 56, and the schedule of contributions on page 57, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual nonmajor fund financial statements, the schedule of revenue available for debt service, and schedule of expenditures of federal awards, as required by Title 2 U.S.

Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such info1mation directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 9, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.

January 9, 2024
3 CITY OF REEDLEY

STATEMENT OF NET POSITION
JUNE 30, 2023
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 25,699,949 $ 6,444,533 $ 32,144,482 Accounts receivable (net of allowance) 74,092 155,320 229,412 Due from other governments 3,721,340 107,384 3,828,724
Prepaid expense 6,000 6,000
Inventory 17,059 523,178 540,237
Restricted assets-cash 1,103,796 1,103,796
Capital assets, net of allowance
for depreciation 57,564,084 47,565,999 105,130,083
Total assets 87,076,524 55,906,210 142,982,734
DEFERRED OUTFLOWS OF RESOURCES 7,671,477 856,759 8,528,236

LIABILITIES
Accounts payable 1,248,397 327,862 1,576,259
Interest payable 160,327 160,327
Retention payable 41,568 41,568
Deposits 400,851 400,851
Long-term liabilities:

Due within one year
Revenue bonds payable 1,518,000 1,518,000
Due in more than one year
Revenue bonds payable 24,508,194 24,508,194
Compensated absences 588,372 159,600 747,972
Net pension liability 15,713,034 1,709,900 17,422,934
Net OPEB liability 5Al2,067 1,162,358 6,574425
Total liabilities 23,003,438 29,947,092 52,950,530
DEFERRED INFLOWS OF RESOURCES 2,121,196 377,487 2,498,683

NET POSITION
Net investment in capital assets 57,564,084 21 ,379,478 78,943,562 Restricted for:

Public ways and facilities 5,579,726 5,579,726
Public safety programs 1,465,342 1,465,342
Community services 41,808 41 ,808
Capital projects and improvements 8,382,983 1,103,796 9,486,779 Unrestricted (3,410,576) 3,955,116 544,540
Total net position $ 69,623,367 $ 26,438,390 $ 96,061 ,757 See accompany ing notes. 4

CITY OF REEDLEY

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
Functions/Programs
Primary Government
Governmenta l activities
Public safety
Public ways and facilities
Community services
Administrative and finance
Community development
Total governmenta l activities
Business-type activities
Water
Sewer
Disposal
Airport
Total business-type activities
Total primary government
General Revenue
Sales and use taxes
Property taxes
Franchise and other taxes
Business license
lnsuraoce refunds and other
Rents
Gain/(loss) on disposa l of assets
Unrestricted investment earnings/(uorealized losses)
Transfer in/(out), net
Total general revenue
Change in Net Position
Net Position
Beginning of year
End of year
See accompanying notes.

Expense
7,87 1,399
5,366,067
2,979,643
3,369,193
893,336
20,479,638
3,457,674
5,167,257
2,533,525
493,462
11 ,65 1,918
32, 131,556
Program Revenue
Operating
Charges for Grants and
Services Contributions
336, 163 4,95 1,095
639,927 3,650,4 11
336,503 1,711 ,7 10
568,954 82,399
1,881,547 10,395,615
4,234,791
5,97 1,750
1,873,759 8, 134
99,490 1,585,702
12,179,790 1,593,836
14,061 ,337 11 ,989,45 1
Net Reve nue /(Expcnse) and
Changes in Net Position
Capital
Grants and Governmental Business-Type
Contributions Activities Activities Total
(2,584, 141 ) (2,584, 141)
2,453,207 1,377,478 1,377,478
(931 ,430) (93 1,430)
(3,369,193) (3,369,193)
675,269 433,286 433,286
3,128,476 (5,074,000) (5,074,000)
777, 11 7 777, 11 7
804,493 804,493
37,794 (613,838) (6 13,838)
1,191,730 1,191,730
37,794 2,159,502 2,159,502
3,166,270 (5,074,000) 2,159,502 (2,914,498)
6,669,822 6,669,822
5,8 10,168 8,900 5,819,068
1,224,005 1,224,005
125,841 125,84 1
311 ,826 24,805 336,63 1
53,093 I 15,595 168,688
22,417 163 22,580
158,982 22,169 181,151
555,309 (555,309)
14,93 1,463 (383,677) 14,547,786
9,857,463 1,775,825 11 ,633,288
59,765,904 24,662,565 84,428,469
69,623,367 26,438,390 96,061,757
5 CITY OF REEDLEY
BALANCE SHEET - GOVERJ.~ MENT AL FUNDS
JUNE 30, 2023
Se ecial Reve nue Fund Caeital Pro ject Fund
Ame rican De velopment Non-Major Total
Rescue Plan Impact Governmental Governme ntal
General Act Fees Funds Funds
ASSETS
Cash and investments $ 9,560,656 $ 2,511 ,097 $ 5,824,279 $ 7,676,784 $ 25,572,816 Accounts receivable 74,092 74,092
Due from other governments 2,393,811 1,327,529 3,72 1,340 Due from other funds 79,868 79,868
Total assets $ 12,108,427 $ 2,511 ,097 $ 5,824,279 $ 9,004,313 $ 29,448,116

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 725,089 38,500 1,41 4 375,942 1,140,945 Retention payable 41 ,568 41 ,568
Due to other funds 79,868 79,868
Total liabilities 725,089 38,500 1,41 4 497,378 1,262,381 Fund Balance
Restricted
Public ways and fac ilities 5,579,726 5,579,726
Public safety programs 1,465,342 1,465,342
Community services 41 ,808 41 ,808
Capital projec ts and improvements 2,472,597 5,822,865 87,521 8,382,983 Assigned 219,852 219,852
Unassigned 11 ,163,486 1,332,538 12,496,024
Total fund balance 11 383 338 2 472 597 5 822 865 8,506 935 28 185 735 Total liabilities and fund balance $ 12,108,427 $ 2,511 ,097 $ 5,824,279 $ 9,004,313 $ 29,448,11 6 See accompanying notes. 6

CITY OF REEDLEY

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION

OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
Total governmental fund balance
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds $
Deferred outflows of resources related to net pension liability and OPEB, represent a consumption of net position or fund balance that applies to future period( s) and so will not be recognized as an outflow of resources (expenses) until that time
Compensated absences are not due and payable in the current period and therefore are not reported in the funds
Net pension liability applicable to governmental activities are not due and payable in the current period and accordingly is not reported in the governmental funds
Post-retirement health benefits are not due and payable in the current period and, therefore, are not reported in the governmental funds Deferred inflows of resources related to net pension liability and OPEB, represent an acquisition of net position or fund balance that applies to future period( s) and so will not be recognized as an inflow of resources (revenue) until that time
The internal service fund is used to charge the costs of automotive equipment activities to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position
Net position of governmental activities
See accompany ing notes.
$
28,185,735
57,165,082
7,671,477
(567,564)
(15,713,034)
(5,412,067)
(2,121,196)
414,934
69,623,367
7 CITY OF REEDLEY
STATEMENT OF REVENUE, EXPENDITURES Ai~D CHANGES IN FUND BALANCE- GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023
SQecial Reve nue Fund Caeital Pro ject Fund
American Deve lopment Non-Major Total
Rescue Plan Impact Governme ntal Governmental
General Act Fees Funds Funds
Reve nue
Intergovernmental $ 3,934,083 3,068,969 $ $ 2,898,254 $ 9,901 ,306 Taxes 10,602,278 5,181,038 15,783,3 16
Charges for services 1,287,637 22,465 1,3 10,102
License, pennits and impact fees 697,286 1,543,464 2,240,750 Other 297,111 16,564 313,675
Investment, rent income , and unrealized losses 124,065 35,948 55,022 215,035 Total revenue 16,942,460 3,068,969 1,579,412 8,173,343 29,764,184 Expenditures
Current
General government 2,121,764 40,150 2,161 ,914
Public ways and facilities 1,481,227 225,829 4,391 2,392,163 4,103,610 Community services 2,858,308 2,858,308
Public Safety 6,942,482 37 1,328,466 8,270,985
Community development 1,089,826 189,048 1,278,874
Capital Outlay 767,734 1,338,096 32,569 1,254,232 3,392,631 Total expenditures 15,261,341 1,563,925 36,997 5,204,059 22,066,322 Revenue over/(under) expenditures 1,68 1,119 1,505,044 1,542,415 2,969,284 7,697,862 Other Financing Sources/(Uses)
Proceeds from sa le of assets 12,894 9,523 22,4 17
Transfers in/( out), net 2,44 1,897 {25,002) (3,432,373) (1 ,015,478) Total other financing sources/(uses) 2,454,791 (25,002) (3,422,850) (993,061) Change in Fund Balance 4,135,910 1,505,044 1,517,413 (453,566) 6,704,801 Fund Balance
Beginning of year 7,247,428 967,553 4,305,452 8,960,50 1 21 ,480,934 End of year $ 11 ,383,338 $ 2,472,597 $ 5,822,865 $ 8,506,935 $ 28,185,735 See accompanying notes. 8

CITY OF REEDLEY

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITES YEAR ENDED JUNE 30, 2023
Net change in fund balance - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated lives and reported as depreciation expense Capital outlay expenditures are therefore added back to fund balances Depreciation expense not reported in governmental funds Compensated absence costs in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the Governmental Funds
Pension 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
Post-retirement benefit costs in the Statement of Activities does not require the use of current fmancial resources and, therefore, are not reported as expenditures in the Governmental Funds Internal service funds are used by management to charge the costs of fleet maintenance to individual funds. The net revenue (loss) of certain activities of internal service funds is reported with governmental activities
Change in net position of governmental activities
See accompany ing notes.
3,392,632
(2,116,195)
$
$
6,704,801
1,276,437
(95,795)
1,763,088
299,100
(90,168)
9,857,463
9 CITY OF REEDLEY

STATEMENT OF NET POSITION - PROPRIETARY FUNDS
JUNE 30, 2023
Business-Type Activities-Enterprise Funds Governmental
Total Activities
Nonmajor Ente~rise Funds Business- Internal
ASSETS \Vater Sewer Diseosal Ai~ort T}'.Ee Funds Service Cunent assets
Cash and cash equivalents $ 1,876,835 $ 4,52 1,368 $ 46,330 $ - $ 6,444,533 $ 127,133 Accounts receivable 35,608 83,724 32,8 14 3,174 155,320 Due from other government 3,515 673 103,196 107,384
Due from other funds 28,990 28,990
Prepaid expense 6,000 6,000
Inventory 413,653 109,525 523,178 17,059
Total current assets 2,364,60 1 4,7 14,617 79,8 17 106,370 7,265,405 144,192 Other assets
Restricted assets-cash 878,382 225,414 1,103,796
Property, plant and equipment, net 12, 102,492 28,329,102 2,402,953 4,731,452 47,565,999 399,002 Total other assets 12,980,874 28,554,516 2,402,953 4,731 ,452 48,669,795 399,002 Total assets 15,345,475 33,269,133 2,482,770 4,837,822 55,935,200 543,194 DEFERRED OUTFLOWS OF RESOURCES 346,483 510,276 856,759

LIABILITIES
Current Liabilities
Accounts payable and acc rued expense 164,447 139,993 15,11 7 8,305 327,862 107,452 Interest payable 124,894 35,433 160,327
Deposits 377,459 23,392 400,851
Current portion of noncunent liabilities 500,000 1,018,000 1,51 8,000 Due to other funds 28,990 28,990
Total current liabilities 1,166,800 1,193,426 15, 11 7 60,687 2,436,030 107,452 Noncurrent liabilities
Revenue bonds paya ble 9,734,107 14,774,087 24,508,194
Compensated absences 59,526 95,238 4,836 159,600 20,808 Net pension liability 691,504 1,018,396 1,709,900
Net OPEB liability 470,071 692,287 1,162,358
Total noncurrent liabilities 10,955,208 16,580,008 4,836 27,540,052 20,808 Total liabilities 12,122,008 17,773,434 15,11 7 65,523 29,976,082 128,260 DEFERRED INFLOWS OF RESOURCES 152,660 224,827 377,487

NET POSITION
Net investment in capital assets 1,743,491 12,50 1,582 2,402,953 4,73 1,452 21,379,478 399,002 Restricted
Debt service 878,382 225,414 1,103,796
Unrestricted (deficit) 795,417 3,054,152 64,700 40,847 3,955,1 16 15,932 Total net position $ 3,417,290 $ 15,78 1,148 $ 2,467,653 $ 4,772,299 $ 26,438,390 $ 414,934 See accompanying notes. 10

CITY OF REEDLEY

STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION -

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Business-Type Activities-Enterprise Funds Governmental
Total Activities
Nonmajor Ente!:Erise Funds Business- Internal
Water Sewer Dis eosal Ai!:Eort T}'.Ee Funds Service
Operating Revenue
Charges for services
User fees $ 4,068,694 $ 5,913,302 $ 1,873,759 $ 98,948 $ 11 ,954,703 $ 1,570,787 Rents 39,35 1 4,050 105,244 148,645
Other income 126,746 54,398 368 542 182,054 674
Total operating revenue 4,234,791 5,971,750 1,874,127 204,734 12,285,402 1,571,461 Operating expense
Personnel 1,378,486 1,763,422 450,892 72,476 3,665,276 943,486 Supplies, materials, utilities and other 1,065,827 1,201,844 113,864 110,921 2,492,456 601,155 Contractual 105,242 437,990 1,882,992 181 ,781 2,608,005 27,537 Depreciation and amortization 549,237 1,326,479 85,777 128,284 2,089,777 83,964 Total operating expense 3,098,792 4,729,735 2,533,525 493,462 10,855,514 1,656,142 Operating income/(loss) 1,135,999 1,242,015 (659,398) (288,728) 1,429,888 (84,681) Nonoperating revenue/(expense)
Gain/(loss) on disposal of assets 163 163
Intergovernmental 45,928 1,585,699 1,631,627
Misce llaneous 20,019 1,940 2,482 24,441
Interest income/(unrealized losses) 12,044 31,899 (4,118) (7,306) 32,519 (5,487) Property taxes 8,900 8,900
Interest expense (358,882) (437,522) (796,404)
Total nonoperating revenue/( expense) (326,819) (403,520) 44,292 1,587,293 901,246 (5,487) Net revenue over/(under) expense 809,180 838,495 (615,106) 1,298,565 2,331,134 (90,168) Other financing so urces/(uses)
Operating transfers in/( out)-net (302,996) (359,517) (18,782) 125,986 (555,309) Change in net position 506,184 478,978 (633,888) 1,424,55 1 1,775,825 (90,168) Ne t Position
Beginning of year 2,9 11 ,106 15,302,170 3,101,541 3,347,748 24,662,565 505,102 End of the year $ 3,4 17,290 $ 15,781,148 $ 2,467,653 $ 4,772,299 $ 26,438,390 $ 414,934 See accompanying notes. 11

CITY OF REEDLEY

ST A TEMENT OF CASH FLOW - PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Business-Type Activities-Enterprise Funds Governmental
Total Activities
Nonmajor Ente!:_Erise Funds Business- Internal
Water Sewer DisEosal Ai!:_Eort TYEe Funds Service
Ope rating activities
Receipts from customers and users $ 4,250,497 $ 5,963,440 $ 1,876,568 $ 201,509 $ 12,292,014 $ 1,571,691 Payments for contractual services,
supplies, utilities and repairs (1,644,109) (2,2 10,691) (614,590) (368,220) (4,837,610) (934,948) Payments to employees (1,169,609) (1 ,354,542) (1 ,996,856) (109,447) (4,630,454) (597,805) Net cash provided by/
(used for) operating ac tivities 1,436,779 2,398,207 (734,878) (276,158) 2,823,950 38,938 Noncapital financing activities
Payments from other governments 47,737 1,514,472 1,562,209 Other income 16,504 1,940 18,444
Payments from/(to) other funds (33 1,986) (359,517) (18,782) 154,976 (555,309) Net cash provided by/(used for)
noncapita l financing activities (3 15,482) (357,577) 28,955 1,669,448 1,025,344 Capital and related financing activities
Proceeds from sale of assets 163 163
Purchase of property, plant and equipment (398,012) (278,154) (1 ,489 ,3 I 6) (2,165,482) (16,086) Principal paid on long-term debt (825,089) (1,186,256) (2,011,345) Interest paid on long-term debt (39,188) (255,979) (295,167) Net cash provided by/(used for)
capital and related financing activities (1,262,289) (1,720,226) (1 ,489,316) (4,471,831) (16,086) Investing activities
Interest received/(unrealized losses) 12,044 31,899 (4,11 8) (7,309) 32,516 (5,487) Ne t increase/(decrease) in cash (128,948) 352,303 (710,041) (103,335) (590,021) 17,365 Cash, beginning ofyear 2,884,165 4,394,479 756,37 1 103,335 8,138,350 109,768 Cash, end of year $ 2,755,217 $ 4,746,782 $ 46,330 $ - $ 7,548,329 $ 127, 133 See accompanying notes. 12

CITY OF REEDLEY

STATEMENT OF CASH FLOW - PROPRIETARY FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
Summary of cash, end of year
Cash and cash equivalents
Restricted assets - cash
Cash, end of year
Reconciliation of operating income to net cash
provided by/(used for) operating activities:
$
$
Water
1,876,835
878,382
2,755,217
Business-Type Activities-Enterprise Funds
Nonmajor Enteryrise Funds
Sewer Disposal Airyort
$ 4,52 1,368 $ 46,330 $ -
225,414
$ 4,746,782 $ 46,330 $ -
Governmental
Total Activities
Business- Internal
TYPe Funds Service
$ 6,444,533 $ 127,133
1,103,796
$ 7,548,329 $ 127,133
Operating income/(loss) $ 1,135,999 $ 1,242,015 $ (659,398) $ (288,728) $ 1,429,888 $ (84,681) Adjustment to reconcile operating income/
(loss) to net cash provided by/(used for)
operating activities:

Depreciation and am01t ization expense
(Increase )/decrease in accounts receivable
(Increase )/decrease in inventory
(Increase )/decrease in deferred outflows of resour,
Increase/( decrease) in accounts payable
and accrued expense
Increase/( decrease) in deferred inflows of resourc,
Increase/( decrease) in compensated absences
Increase/( decrease) in OPEB liability
Increase/(decrease) in net pension liability
Increase/( decrease) in deposits
Net cash provided by/(used for)
operating ac tivities
See accompany ing notes.
549,237 1,326,479
(5,724) (8,310)
(99,972) 2,485
(176,777) (260,346)
(60,409) (11,764)
(307,073) (452,233)
5,464 8,192
15,505 22,835
359,099 528,854
21,430
$ 1,436,779 $ 2,398,207 $
85,777
2,441
(1 63,698)
128,284
(3,174)
(11 3,963)
1,474
(5 1)
2,089,777
(14,767)
(97,487)
(437,1 23)
(349,834)
(759,306)
15,130
38,340
887,953
21,379
83,964
230
264
35,811
3,350
(734,878) $ (276,158) $ 2,823,950 =$ ==3===8,=93=8
13 CITY OF REEDLEY

STATEMENT OF FIDUCIARY NET POSITION - CUSTODIAL FUNDS
JUNE 30, 2023
Assets
Cash and cash equivalents
Total assets
Liabilities
Accounts Payable
Total liabilities
Net Position
Restricted for
Individuals, organization, and other governments
$
Total Net Position $
See accompany ing notes.

Custodial
Funds
256,346
256,346
3,023
3,023
253,323
253,323
14 CITY OF REEDLEY

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - CUSTODIAL FUNDS JUNE 30, 2023
See accompanying notes.

Additions
Deposits
Total additions
Deductions
Payment to other entities
Total deductions
Change in net position
Net position, beginning
Net position, ending
$
$
Custodial
Funds
107 411
107,411
79,151
79,151
28,260
225,063
253,323
15 CITY OF REEDLEY

STATEMENT OF FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND
JUNE 30, 2023
Assets
Cash and investments
Accounts receivable
Notes receivable
Total assets
Liabilities
Accounts payable
Interest payable
Long-term debt
Due within one year
Due in more than one year
Total liabilities
Net Position
Held in trust for other governments
See accompany ing notes.

Successor Agency
$ 563,776
224,864
1,531,319
2,319,959
186,269
14,080
295,000
3,380,000
3,875,349
(1,555,390)
$ (1,555,390)
16 CITY OF REEDLEY

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND - SUCCESSOR AGENCY
JUNE 30, 2023
Additions
Property taxes
Charges for services
Investment earnings
Total additions
Deductions
Program expenses
Interest and fiscal agency expenses
Total deductions
Change In Net Position
Net Position
Beginning of year
End of year
See accompany ing notes.

Successor Agency
$
$
379,477
16,626
28,234
424,337
6,274
85,516
91 ,790
332,547
(1 ,887,937)
(1 ,555,390)
17 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies
The financial statements of the City of Reedley (the City) have been prepared in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP) as applicable to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

These financial statements present the government and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations and data from these units is combined with data of the primary government. Each blended component unit has a June 30 fiscal year end. There are no discretely presented component units included in these financial statements. The following sections further describe the significant accounting policies of the City.

Reporting Entity
The City of Reedley, State of California (the "City"), was incorporated on Febrnary 18, 1913. The City operates under a Council-Manager form of government. The City's major operations include public safety (police and fire); highways and streets; water, sewer and refuse collection: parks and recreation; building inspection; airport; public improvements; planning and zoning and general administrative services.

The Reedley Public Financing Authority (the "Authority") was created by a Joint Exercise of Powers between the City and the Agency on November 23, 1993. An Agreement was entered into pursuant to the provisions of the Marks Roos Local Bond Pooling Act of 1985, Articles 1, 2 and 4, Chapter 5, Division 7, Title 1 of the California Government Code (the JP A Law"). The Authority, which is governed by a commission consisting of the members of the City Council, was created for the purpose of assisting the financing of refinancing of the Authority's project areas. Under the JPA Law, the Authority has the power to purchase bonds issued by any local agency at public or negotiated sale and may sell such bonds to public or private purchasers at public negotiated sale.

Basis of Presentation - Fund Accounting
Government-Wide Financial Statements - The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities and Changes in Net Position) report information of all of the nonfiduciary activities of the primary government and its component units. For the most part, eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City and between the City and its component unit.

Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely significantly on fees charged to external parties.

The Statement of Activities and Changes in Net Position presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 18 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) Net position is restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

Governmental Fund Financial Statements - The Governmental Fund Financial Statements provide information about the City's funds, including fiduciary funds and the blended component unit. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

The City reports the following major governmental funds:

General Fund - The General Fund is the general operating fund of the City. It is used for all financial resources except those required legally, or by sound financial management to be accounted for in another fund. Generally, the General Fund is used to account for those traditional governmental services of the City, such as police and fire protection, planning and general administrative services.

American Rescue Plan Act Special Revenue Fund - The American Rescue Plan Act Special Revenue Fund is used to account for the monies received from the State which are to be used for the Covid related costs.

Development Impact Fees Capital Project Fund-The Development Impact Fees Capital Project Fund was established to account for monies received from impact fees and spending of those funds. 19 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) The City reports the following major enterprise funds:

Water Fund - The Water Fund accounts for the operation and maintenance of the City's water treatment and water transmission and distribution systems.

Sewer Fund - The Sewer Fund accounts for the operation and maintenance of the City's sewer system.

The City reports the following additional fund types:

Internal Service Fund - The Internal Service Fund accounts for fleet management and computer services provided to other departments or agencies of the government, on a cost reimbursement basis.

Custodial Funds - The Custodial Funds account for assets held by the City as an agent for various local governments or other entities. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.

Private-Purpose Trust Funds - The Private-Purpose Trust Fund accounts for assets held by the City as trustee for the Successor Agency.

Basis of Accounting
The Government-Wide and Proprietary Fund Financial Statements are rep01ied using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incuned, regardless of when the related cash flows take place. N onexchange transactions, in which the City gives ( or receives) value without directly receiving ( or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.

Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental Funds are reported using the cunent financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

Property and sales taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available.
20 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) Basis of Accounting (Continued)
Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund's principal ongoing operations. Revenues and expenses not meeting this definition are reported as non-operating.

Financial Statement Amounts
Cash and Investments - Cash and investments represent the City's cash bank accounts including but not limited to certificates of deposit, money market funds and cash management pools for reporting purposes in the Statement of Cash Flows. Additionally, investments with maturities of three months or less when purchased are included as cash equivalents in the Statement of Cash Flows.

The City maintains a cash and investment pool that is available for use by all funds. Interest earnings as a result of this pooling are distributed to the appropriate funds based on month end cash balances in each fund.

Investments of the pool include only those investments authorized by the California Government Code such as, United States Treasury securities, agencies guaranteed by the United States Government, registered state warrants, and other investments. Investments primarily consist of deposits in the State of California Local Agency Investment Fund. Investments are stated at cost or amortized cost.

Inventories - Inventories consist of expendable supplies held for the City's use and are carried at cost using the first-in, first-out method.

Accounts Receivable - Billed but unpaid services provided to individuals or non-governmental entities are recorded as accounts receivable. The Proprietary Funds include a year-end accrual for services through June 30, 2023, which have not yet been billed.

Fresno County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. Secured property taxes are due in two installments, on November 1 and March 1, and become a lien on those dates. They become delinquent on December 10 and April 10, respectively. Collection of delinquent accounts is the responsibility of the County, which retains all penalties collected. Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 60 days after year end. Property tax on the unsecured roll are due on July 1 and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual. 21 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per$ 100 of full cash value.

Jnterfund Receivables/Payables - Items classified as interfund receivable/payable represent short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund.

Advances To/From Other Funds - This classification represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation. The current portion of any interfund long-term loan (advance) is included as an interfund receivable/payable.

Capital Assets - Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City's capitalization threshold are met.

Capital assets, which include property, plant, equipment, and infrastructure assets ( e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the Government-Wide Financial Statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5 ,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constmcted. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of fixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Major outlays for capital assets and improvements are capitalized as projects are constmcted. Interest incurred during the constmction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constmcted.

Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:

Depreciable asset
Buildings
Improvements
Macrnnery and equipment
Utility system
Infrastmcture
Years
10-40
10-40
3-20
5-50
15-50
22 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) Compensated Absences - It is the City's policy to permit all employees to accumulate earned but unused vacation and compensatory time benefits. Those employees on shift work schedules may also accumulate hours for holiday time benefits.

Vested or accumulated vacation, holiday and any compensation time that is expected to be paid with expendable available financial resources is reported as expenditure in the fund financial statements of the Governmental Fund that will pay for it. Amounts not expected to be liquidated with expendable available financial resources are reported in the Government-Wide Financial Statements.

Vested leave of Proprietary Funds are recorded as an expense and liability as the benefits accrue.

Unearned Revenue - Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records unearned revenue related to uncollected outstanding, performing loans and intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).

Long-Term Obligations - In the Government-Wide Financial Statements, and Proprietary Fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or Proprietary Fund Type Statement of Net Position. Debt principal payments of both government and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts, as well as issuance costs, are deferred and am01iized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, however, debt principal payments of Governmental Funds are recognized as expenditures when paid. Governmental Fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Non-Current Governmental Assets/Liabilities - GASB Statement No. 34 eliminates the presentation of account groups, but provides for these records to be maintained and incorporates the information into the Governmental Activities column in the Government-Wide Statement of Net Position.

Pension Plan - All full-time City employees are members of the State of California Public Employees' Retirement System. The City's policy is to fund all pension costs accrued; such costs to be funded are determined annually as of July 1 by the System's actuary. See note 9 for further discussion.

Bond Discount and Issuance Costs - For governmental funds, bond discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable discount. Issuance costs, whether or not withheld form the actual net proceeds received, are reported as debt service expenditures. For business-type funds, bond discounts, are deferred and amortized over the life, of the bonds. Bonds payable are reported net of applicable bond discounts. Issuance costs are expensed.
23 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) Net Position - The government-wide and business-type activities fund financial statements utilize a net position presentation. Net position are categorized as net investment in capital assets, restricted and unrestricted.
• Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
• Restricted Net Position - This category presents external restrictions on net position imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net Position - This category represents net position of the City, not restricted for any project or other purpose.

Fund Balance - In the fund financial statements, governmental fund balance is made up of the following components:
• Nonspendable fund balance typically includes inventories, prepaid items, and other items that must be maintained intact pursuant to legal or contractual requirements, such as endowments. • Restricted fund balance category includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.
• Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has the authority to establish, modify, or rescind a fund balance commitment. • Assigned fund balance are amounts designated by the City Council for specific purposes and do not meet the criteria to be classified as restricted or committed. • Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
24 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) When expenditures are incurred for purposes for which both restricted and unrestricted ( committed, assigned, or unassigned) fund balances are available, the City's policy is to apply restricted first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City's policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Note 2 - Stewardship, Compliance and Accountability
California law authorizes the City to invest in obligations of the United States Treasury, agencies and instrumentalities, certificates of deposit or time deposits in banks and savings and loan associations which are insured by the Federal Deposit Insurance Corporation.

In accordance with applicable sections of the California Governrnent Code and the Reedley Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, specific Special Revenue Funds, and specific Capital Projects Funds. Budget plans are adopted for Proprietary Funds. A proposed budget is presented to the City Council during June of each year for review. The Council holds public hearings and may add to, subtract from, or change appropriations within the revenues and reserves estimated as available. Expenditures may not legally exceed budgeted appropriations at the fund level. Supplementary appropriations which alter the total expenditures of any fund, or expenditures in excess of total budgeted fund appropriations, must be approved by the City Council.

All annual appropriations lapse at fiscal year end to the extent they have not been expended or encumbered. 25 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 - Cash and Investments
The City pools all of its cash and investments except those funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash is allocated to the various funds on average cash balances. Interest income from cash investments held with fiscal agents is credited directly to the related funds.

Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments
Restricted Cash
Fiduciary Funds:

Cash and Investments
Total Cash and Investments
Cash and investments as of June 30, 2023 consist of the following:

Cash on hand
Deposits with Financial Institutions
Time Deposits
Cash with fiscal agent
Total Cash and Investments
Fair Value Measurements
$ 32,144,482
1,103,796
820,122
$ 34,068,400
$ 6,000
21,839,178
11,119,426
1,103,796
$ 34,068,400
The framework for measuring fair value provides a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

Level 2: Inputs to valuation methodology include inputs - other than quoted prices included within Level 1 - that are observable for an asset or liability, either directly or indirectly.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
26 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 - Cash and Investments (Continued)
Fair Value Measurements (Continued)
The asset's or liability's fair value measurement level within a fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Level 1
Investments by fair value level:

Equity:

LAIF $
Total Equity
Carried at amortized cost:

Bank Deposits, Time Deposits and Cash on Hand
Total Cash and Investments amortized at cost
Total Cash and Investments
Level2 Level 3
$ $
June 30, 2023
Balance
$
34,068,400
34,068,400
$ 34,068,400
Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The City's investment policy does not contain any specific provisions intended to limit the City's exposure to interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. 27 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 - Cash and Investments (Continued)
Authorized Investment Type
Local Agency Bonds
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Medium-Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass-Through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
Investments Authorized by Debt Agreements
Maxnnum
Maturity
1 year
1 year
1 year
180 days
270 days
1 year
1 year
NIA
NIA
1 year
NIA
NIA
Maxnnum Maxnnum
Percentage Investment in
of Portfolio One Issuer
None 5%
None None
None None
40% 5%
25% 5%
30% None
30% None
20% 10%
20% 10%
20% None
None None
None None
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maxnnum Maxnnum
Maxnnum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 1 year None None
Commercial Paper None None None
Money Market Mutual Funds None None None
Investment Contracts None None None
Certificates of Deposit 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) NIA None None
Municipal Bonds None None None
28 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 - Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As of June 30, 2023 the City had the following investments:

Remaining Maturity in Months
June 30, 2023 12 or Less 13 to 24 25 to 60 More than 60 Balance Months Months Months Months
Investment Type
Tune Deposits $ 11,119,426 $ 249,788 $ 1,038,905 $ 9,830,733 $ Total Tune Deposits $ 11,119,426 $ 249,788 $ 1,038,905 $ 9,830,733 $ Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

Investment Type
Equity:

LAIF
Total Equity Securities
June 30, 2023 Rating of Year
Balance End
$ Not Rated
$
29 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 3 - Cash and Investments (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of the total City investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. As of June 30, 2023 the City did not have a balance in LAIF.
30 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 4 - Capital Assets
Capital asset activity of the governmental activities for the year ended June 30, 2023 is as follows:

Balance Balance
JulI 1, 2022 Additions Retirements June 30, 2023
Governmental Activities
Capital assets, not being depreciated
Land $ 3,477,211 $ - $ - $ 3,477,211
Total capital assets, not being depreciated 3,477,211 3,477,211 Capital assets, being depreciated
Buildings 2,388,977 167,518 2,556,495
Improvements 60,656,915 2,471,272 63,128,187
Furniture and equipment 2,278,209 254,179 2,532,388
Vehicles 5,634,310 515,749 6,150,059
Total capital assets, being depreciated 70,958,411 3,408,718 74,367,129 Less accumulated depreciation for
Buildings (1 ,503,604) (54,193) (1 ,557,797)
Improvements (11 ,781 ,818) (1,511,023) (13 ,292,841)
Furniture and equipment (927,909) (208,541) (1 ,136,450) Vehicles (3,866,766) (426,402) (4,293,168)
Total accumulated depreciation (18,080,097) (2,200,159) (20,280,256) Total capital assets, being depreciated, net 52,878,314 1,208,559 54,086,873 Governmental activities capital assets, net $ 56,355,525 $ 1,208,559 $ - $ 57,564,084 Depreciation expense on capital assets was charged to the governmental functions as follows:

Governmental Functions:

General Government $ 88,379
Public Safety 350,459
Public Works 1,470,118
Parks and Community Services 207,239
Internal Service Fund 83,964
$ 2,200,159
31 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 4 - Capital Assets (Continued)
Capital assets activity of the business-type activities for the year ended June 30, 2023 is as follows:

Balance
July 1, 2022 Additions Retirements
Business-type Activities
Capital assets, not being depreciated
Land $ 1,391 ,382 $ - $ -
Total capital assets, not being depreciated 1,391,382
Capital assets, being depreciated
Buildings 1,140,025
Improvements 70,016,129 1,734,109
Furniture and equipment 13,065,716 330,917
Vehicles 1,777,840 100,456
Total capital assets, being depreciated 85,999,710 2,165,482 Less accumulated depreciation for
Buildings (950,877) (19,356)
Improvements (18,835,676) (1 ,602,301)
Furniture and equipment (18,752,147) (293,235)
Vehicles (1,362,098) (174,885)
Total accumulated depreciation (39,900,798) (2,089,777) Total capital assets, being depreciated, net 46,098,912 75,705 Business-type activites capital assets, net $ 47,490,294 $ 75,705 $ - Depreciation expense on capital assets was charged to the business-type functions as follows:

Business-Type Functions:

Water
Sewer
Disposal
Airport
$
$
549,237
1,326,479
85,777
128,284
2,089,777
Balance
June 30, 2023
$ 1,391,382
1,391,382
1,140,025
71 ,750,238
13,396,633
1,878,296
88,165,192
(970,233)
(20,437,977)
(19,045,382)
(1,536,983)
(41 ,990,575)
46,174,617
$ 47,565,999
32 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 - Long-term Liabilities
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

The City's debt transactions for governmental-type activities are summarized below and discussed in detail thereafter:

Balance Balance
Jul}'. 1, 2022 Additions Retirements June 30, 2023
Governmental Activity Long Term Debt
Net pension liability $ 8,181,110 $ 7,531,924 $ - $ 15,713,034 Net OPEB liability $ 5,233,554 $ 178,513 $ - $ 5,412,067 Compensated absences $ 489,227 $ 99,145 $ - $ 588,372
The City's debt transactions for business-type activities are summarized below and discussed in detail thereafter:

Balance Balance Current
Jul~ 1, 2022 Additions Retirements June 30, 2023 Portion Direct Borrowings:
2016 Wastewater Refunding Revenue Bonds payable $ 2,430,000 $ - $ (135,000) $ 2,295,000 $ 140,000 Bond prerruums 160,630 (11 ,542) 149,088 11 ,542
2017 Water Refunding Revenue Bonds 10,445,000 (480,000) 9,965,000 500,000 Bond prerruums 288,101 (18,995) 269,106 18,996
2019 Wastewa ter Refunding Revenue Bonds 14,204,000 (856,000) 13,348,000 878,000 $ 27,527,731 $ - $ (1 ,501 ,537) $ 26,026,194 $ 1,548,538 Net pension liability $ 821 ,947 $ 887,953 $ - $ 1,709,900 Net OPEB liability $ 1,124,018 $ 38,340 $ - $ 1,162,358 Compensated absences $ 144,470 $ 15,130 $ - $ 159,600
Revenue Bonds Payable
2016 Wastewater Refunding Bonds - In 2016 the City issued $3,160,000 of Wastewater Revenue Refunding Bonds. The proceeds from the issue were used to defease the 2007 Reedley Public Financing Authority Wastewater Revenue Bonds in the amount of $3,385,000. Interest on the bonds ranges from

2.000% to 4.000%. The City signed an agreement with principal payments plus interest due June 1 and December I of each year beginning in 2016 through 2036. 33 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 - Long-Term Liabilities (Continued)
The annual debt requirements due under the terms of the 2016 Wastewater Refunding Bonds are as follows:

Year Ending June 30 Principal Interest Total
2024 $ 140,000 $ 8,215 $ 148,215
2025 145,000 77,950 222,950
2026 150,000 72,150 222,150
2027 155,000 66,150 221,150
2028 165,000 59,950 224,950
2029-2033 910,000 196,550 1,106,550
2034-2036 630,000 381 ,000 1,011,000
Total $ 2,295,000 $ 861,965 $ 3,156,965
2017 Water Refunding Bonds - In 2018 the City issued $12,615,000 of Water Refunding Revenue Bonds.

The proceeds from this issue were used to defease the 2007 Reedley Public Financing Authority Water Revenue Bonds in the amount of $12,475,000. Interest on the bonds ranges from 2.000% to 5.000%. The City signed an agreement with principal payments plus interest due March 1 and September 1 of each year beginning in 2018 through 203 7.

The annual debt requirements due under the te1ms of the 2017 Water Refunding Bonds are as follows:

Year Ending June 30 Principal Interest Total
2024 $ 500,000 $ 364,681 $ 864,681
2025 520,000 344,281 864,281
2026 540,000 320,381 860,381
2027 570,000 292,631 862,631
2028 600,000 263,381 863,381
2029-2033 3,320,000 986,785 4,306,785
2034-2038 3,915,000 367,619 4,282,619
Total $ 9,965,000 $ 2,939,759 $ 12,904,759
Capital Lease Payable
2019 Wastewater Revenue Refunding Bonds - In December 2019 the City issued $ 15,674,000 of Wastewater Bonds. The proceeds from this issue were used to pay off the note payable with the State Water Resources Control Board in the amount of $12,475,000. Interest on the bonds ranges from 2.400% to

2.570%. The City signed an agreement with principal payments plus interest due June 1 and December 1 of each year beginning in 2020 through 2036.
34 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 5 - Long-Term Liabilities (Continued)
The annual debt requirements due under the terms of the note are as follows:

Year Ending June 30 Principal Interest Total
2024 $ 878,000 $ 343,044 $ 1,221,044
2025 900,000 320,479 1,220,479
2026 924,000 297,349 1,221,349
2027 947,000 273,602 1,220,602
2028 972,000 249,264 1,221,264
2029-2033 4,143,000 858,586 5,001,586
2034-2036 4,584,000 180,440 4,764,440
Total $ 13,348,000 $ 2,522,764 $ 15,870,764
Note 6 - lnterfund Transactions
Due From and To Other Funds
Interfund receivables and payables consist of short-term loans resulting from regular transactions. These loans are expected to be repaid as soon as the borrowing fund has cash. Individual fund interfund receivables and payables balances as of June 30, 2023 are as follows:

Due From Due To
Governmental Funds:

General Fund $ 79,868 $
Gas Tax Fund 52,713
SB2 Planning 21 ,533
Senior Center 5,622
Enterprise Funds:

Water 28,990
Airport 28,990
$ 108,858 $ 108,858
35 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 6- Interfund Transactions (continued)
Transfers In and Transfers Out
In general, the City uses interfund transfers to (1) move revenues from the funds that collect them to the funds' that statute or budget requires to expend them, (2) use unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds in accordance with budgetary authorization, and (3) move cash to debt service funds from the funds responsible for payment as debt service payments become due. In general, the effect of the interfund activity has been eliminated from the governmentwide financial statements.

Transfers to Transfer from
Other Funds Other Funds
Major Funds:

General Fund $ 2,441,897 $
Developer Impact Fees Fund 25,002
Non Major Funds:

Gas Tax 26,774
Senior Center 15,361
Street Projects Funds 9,661
Public Safety Sales Tax Fund 24,387
COPS Program 3,710
Groundwater Treatment Settlement 2,328,414
Community Facilities District 889,000
Local Transportation Fund 161,462
Landscape Maintenance 4,326
Enterprise Funds:

Disposal Fund 18,782
Water Fund 302,996
Sewer Fund 359,517
Airport Fund 125,986
Internal Service Fund 1,570,787
$ 4,154,031 $ 4,154,031
• $1 ,570,787 was transferred into the Internal Service Fund from various funds to cover fleet management and health insurance premiums.
• $2,328,414 transferred out of Groundwater Treatment Settlement to the General and Airport fund was to covered various capital projects.
• $889,000 was transferred out of Community Facilities District to the General Fund to cover overhead related to police, fire, parks and administrative costs. 36 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 - Pension Plan
Plan Description - The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries.

PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office - 400 P Street - Sacramento, CA 95814.

Funding Policy - Participants are required to contribute eight percent (nine percent for safety employees) of their annual covered salary. The City contributes the employees required share for administrative and public works employees and 5% and 4% of the police and dispatchers required share, respectively. The City is required to contribute at an actuarially determined rate; the current rate is 7.470 - 10.320 percent for non-safety employees and 12.780 - 20.640 percent for safety employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS.

Benefits provided - CalPERs provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following : the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plans' provisions and benefits in effect at June 30, 2023 , are summarized as follows:

Hire Date
Benefit Formula
Benefit Vesting Schedule
Benefit Payments
Retirement Age
Monthly Benefits, as a % of Eligible Compensation
Required Employee Contribution Rates
Required Employer Contribution Rates
Miscellaneous
Prior to
January 1, 2013

2.0% at 55;
maximum 2%
COLA
5 years service
monthly for life
55 2.00%

7.00%

10.320%
Safety Police & Fire
Prior to
January 1, 2013

3.0% at 55;
maximum2%
COLA
5 years service
monthly for life
55 3.00%

9.00%

20.640%
3 7

CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 - Pension Plan (continued)
Hire Date
Benefit Formula
Benefit Vesting Schedule
Benefit Payments
Retirement Age
Monthly Benefits, as a % of Eligible Compensation
Required Employee Contribution Rates
Required Employer Contribution Rates
PEPRA
Miscellaneous
On or After
January 1, 2013

2.0% at 62;
maximum2%
COLA
5 years service
monthly for life
62 2.00%

6.25%

7.470%
PEP RA Safety
On or After
January 1, 2013

2.7% at 57;
maximum 2%
COLA
5 years service
monthly for life
57 2.70%

11.50%

12.780%
Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following the notice of a change in the rate. Funding contributions for both Plans are determined annually on an achiarial basis as of June 30 by CalPERS. The achiarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2023, the contributions recognized as part of the pension expense was $2,285,530.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023 , the City repo1ied net pension liabilities for its proportionate shares of the net pension liability as follows:

Proportionate Share of
Net Pension Liability
Miscellaneous $ 9,671 ,379
Safety
Total $
7,751 ,555
17,422,934
38 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 - Pension Plan (continued)
The City's net pension liability is measured as the proportionate share of the net pension liability. The net pension liability of each Plan is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023 was as follows:

Proportion - June 30, 2022
Proportion - June 30, 2023
Change - Increase/(Decrease)
Miscellaneous

0.24484%

0.20669%
-0.03815%
Safety

0.12406%

0.11281%
-0.01125%
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
Pens ion contributions subsequent to
measurement date
Change in employer's proportion
Differences between employer's contributions and
proportionate share of contributions
Differences between expected and actual
expenence
Changes of assumptions
Differences between projected and actual
investment earnings
Total
Deferred Outflows
of Resources
$
$
2,554,010
230,669
515,029
1,772,626
2,995,620
8,067,954
Deferred Inflows of
Resources
$
185,551
621 ,625
214,256
$ 1,021 ,432
$2,554,010 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows or resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2024 $ 1,168,275
2025 969,421
2026 524,578
2027 1,830,238
$ 4,492,512
39 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 - Pension Plan (continued)
Actuarial Methods and Assumptions - The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Salary Increases
Mortality Rate Table
June 30, 2021
June 30, 2022
Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68

6.90%

2.30%

2.30%
Varies by Entry Age and Service
Derived using CalPERS' Membership 1
Date for all Funds
Post Retirement Benefit Increase Contract COLA up to 2.3% until Purchasing Power Protection
Allowance Floor on Purchasing Power
applies
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 201 7 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

Change of assumptions - None.
40 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 - Pension Plan (continued)
Discount rate - The discount rate used to measure the total pension liability for PERF C was 6.9%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-tenn expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate ofreturn on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return ( expected rate of returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The long-term expected real rates ofretum by asset class can be found in CalPERS' Comprehensive Annual Financial Report for the fiscal year ended June 30, 2022. 41 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 7 - Pension Plan ( continued)
The table below refl ects long-term expected real rates of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

The geometric rates of return are net of administrative expenses.

Assumed Asset Real Return 1,
Asset Class Allocation
2 Years 1- 10
Global Equity - cap-weighted 30% 4.45%
Global Equity - non-cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 27.00%
Mortgage-backed Securities 5% 50.00%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
Total 100%
(1) An expected inflation of 2.3% used for this period
(2) Figures are based on the 2021-22 Asset Liability Management study Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for each Plan, calculating using the discount rate of each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage point lower (5.90%) or I-percentage point higher (7.90%) than the current rate :

Current
1% Decrease Discount Rate 1 % Increase
(5.90%) (6.90%) (7.90%)
Miscellaneous $ 14,764,415 $ 9,671 ,379 $ 5,481,072
Safety $ 11 ,475,665 $ 7,751 ,555 $ 4,707,936
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan - At June 30, 2023, the City has no reported outstanding amount of contributions payable to the pension plan required for the year ended June 30, 2023 . 42 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits
Plan Description
The City provides medical benefits to qualified retirees and dependants (the Plan) as authorized and specified by Resolution 2020-021 adopted by the City Council of April 28, 2020. The City opted out of the Public Employee's Medical and Hospital Care Act effective January 1, 2014. Prior to this date, the City provided medical benefits to retirees under plans offered by California Public Employee Retirements Systems (CalPERS), an agent multiple -employer defined healthcare plan.

The Plan is a multi-tier benefit structure, specifically Tiers 1, 2 and 3; where eligible employees and dependants receive differing level of benefits. The City is reponsible for establishing and amending the eligiblity, benefit levels and funding policy of the Plan. As of June 30, 2023, the inaugural and latest actuarial study available, there were 115 active full-time employees and 40 retirees covered by the Plan. There is no city contributions for retiree dental, vision, life insurance or Medicare Part B reimbursement.

Eligibility Requirements
In order to be eligible for these benefits, an employee must retire directly from the City under CalPERS with 10 years of City service as a full-time regular employee and be at least 55 years of age at retirement. The length of service requriement does not apply to Tier 1 benefits.

Tier I - Benefits for current retirees and their dependents are as follows:

A) For current retirees and/or their dependents who are not yet eligible for Medicare:

For the retiree only, City shall contribute towards the retiree's monthly medical coverage at the same rate as the City contributes towards Unrepresented employees' monthly medical coverage, as such contribution may be modified from time to time; and
City shall contribute up to $500.00 monthly, total, for medical coverage of dependents who are not yet eligible for Medicare, with retirees responsible for paying the difference in cost between the medical plan and City contribution; and
The retiree must notify the City within thirty (30) days of the retiree's and/or dependent's eligibility for Medicare. Only the surviving spouse or registered domestic partner of an eligible retiree shall remain eligible for the dependent benefit until his/her death or remarriage. 43 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits (continued) Eligibility Requirements ( continued)
B) For current retirees and/or their dependents who are eligible for Medicare:
i) City shall cover I 00% of the monthly premium for a group Medicare Supplement plan, as identified and selected by the City, for retiree and one dependent; and ii) City shall contribute up to $500.00 monthly, total, for medical coverage of dependents who are not yet eligible for Medicare, with retirees responsible for paying the difference in cost between the medical plan and City contribution; and iii) Subject to availability, only current retirees and their eligible dependents shall have access to a 'Freedom of Choice' option, whereupon the City, through its designated provider, will cover up to $251.76 per month ("Cap") for each retiree and his/her one dependent, for the reimbursement of premium cost for a Medicare Supplement and/or prescription drug plan of their choice; and
iv) The $251.76 Cap for the 'Freedom of Choice' option shall be adjusted annually, each January, by the change in premium (if applicable), from year to year, of the group Medicare Supplement Plan then cmTently being offered by the City to Medicare eligible retirees. The Cap shall always be $10.00 less than the group Medicare Supplement premium to help defray additional administrative costs of offering the 'Freedom of Choice' option. At no time shall the retiree/dependent receive in excess of the premium amount.
v) The 'Freedom of Choice' option shall not be available for new enrollment or re-enrollment after December 14, 2016.

C) Minimum eligibility requirements for current City retirees:
i) All current retirees must be at least 55 years of age as of the effective date of this resolution in order to continue receiving retiree medical benefits for themselves or their dependents. Retirees or dependents who were not enrolled in a City-provided retiree medical benefit as of the adoption date of Resolution 2013-083 (September 24, 2013) are not eligible to enroll in or otherwise receive retiree medical benefits. Affected retirees will not be permitted to purchase coverage in the City's medical plans. Retirees turning 55 years of age after the effective date of this resolution shall not be eligible for this City benefit.

Tier 2 - Benefits for current full-time regular City employees are as follows, subject to the following eligibility requirements:

A) Minimum eligibility requirements for current full-time regular City employees. To be eligible for retirement medical benefits, a full-time regular employee must: (i) retire under a regular or disability PERS retirement and enroll in City provided retirement medical benefits within 120 calendar days from voluntary separation from City employment; (ii) be at least 55 years of age at time of retirement; and (iii) have been employed by the City for a cumulative total of at least ten ( I 0) years as a full-time regular employee. Employee must be a full-time regular employee at the time of retirement. No purchase of service credit is allowed. Voluntary separation from City employment shall mean any separation other than termination for cause. Te1mination for cause shall be deemed involuntary separation, and shall preclude such terminated employee from eligibility in and for this benefit. 44 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits (continued) Eligibility Requirements ( continued)
i) In order for an employee's dependent to be eligible for coverage, the dependent must be enrolled in the employee's plan at the time an employee retires, subject to the employee meeting minimum eligibility requirements.

B) Employees with at least ten (10) years of cumulative service with the City as a full-time regular employee upon Retirement:
i) If the retiree is not eligible for Medicare, the City shall contribute either 50% of the medical premium for the retiree only, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage as such contribution may be modified from time to time, whichever is less, using the menu of medical plans available to City employees, or if not available, plans identified and selected by the City; and ii) If the retiree is eligible for Medicare, City shall cover either 50% of the medical premium for the retiree and one dependent, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage, whichever is less, for a group Medicare Supplement plan as identified and selected by the City; and iii) There shall be no coverage for more than one dependent; and iv) If the dependent is not Medicare eligible, the City shall contribute up to $250.00 monthly, total, for dependent medical coverage with retirees responsible for paying the difference in cost between the medical plan and City contribution.

C) Employees with at least twenty (20) years of cumulative service with the City as a full-time regular employee upon Retirement:
i) If the retiree is not eligible for Medicare, the City shall contribute either 80% of the medical premium for the retiree only, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage, whichever is less, using the menu of medical plans available to City employees, or if not available, plans identified and selected by the City; and ii) If the retiree is eligible for Medicare, City shall cover either 80% of the medical premium for the retiree and one dependent, or the amount that the City then currently contributes towards Unrepresented employees' medical coverage, whichever is less, for a group Medicare Supplement plan as identified and selected by the City for retiree and one dependent only; and iii) There shall be no coverage for more than one dependent; and iv) If the dependent is not Medicare eligible, the City shall contribute up to $250.00 monthly, total, for dependent medical coverage with retirees responsible for paying the difference in cost between the medical plan and City contribution.

D) The retiree must notify the City within thirty (30) days of the retiree's and/or dependent's eligibility for Medicare. Only the surviving spouse or registered domestic partner of an eligible retiree shall remain eligible for the dependent benefit until his/her death or remarriage.

E) Full-time regular City employees who are working for the City in a full-time capacity as of September 24, 2013, (Date of Adoption of Resolution 2013-083) who retire on or before December 31, 2016, shall be eligible for the same City contributions to retiree medical benefits as current retirees as defined in Tier 1 above. Minimum eligibility requirements under Section 2.A shall still apply to subject employees, except that for the minimum eligibility requirement under Section 2.A (iii) shall not apply. 45 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits (continued) Eligibility Requirements ( continued)
Tier 3 - No retiree benefits for future City employees:

A) No new employee or re-hired employee initially hired or re-hired on or after January 1, 2014 shall be eligible for the retiree or retiree dependent medical coverage provided herein, unless said employee was a full-time regular employee of the City prior to January 1, 2014.

B) Current part-time employees, notwithstanding the fact that they are currently employed by the City and may subsequently work for the City in a full-time regular capacity, shall not be eligible for retiree medical benefits, unless they begin work in a full-time regular capacity prior to January 1, 2014 and satisfy all other eligibility requirements. In other words, for purposes of determining eligibility for the retiree medical benefits, the date of hire shall be treated as the date upon which the current part-time employee begins his/her assignment as a full-time regular employee.

The City reported that the only OPEB provided is medical plan coverage.

Employees Covered
Membership in the plan consisted of the following at June 30, 2023 , the date of the latest actuarial valuation:

Summary of Plan Member Counts
Inactive employees receiving benefits 38
Inactive employees entitled to but not receiving benefits 0 Participating active employees 46
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City. The City determines the required contributions using the Entry Age Normal Cost Method. The required contribution is based on projected pay-as-you-go financing requirements. 46 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits (continued) Actuarial Assumptions
The City's net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation date as of June 30, 2023.

Actuarial Assumptions:

Salary Increase
Inflation Rate
Investment rate of return
Health Cost Trend Rates
Mortality rate

2.75%

2.50%

6.25%

3. 75-5.65% (Medicare) and 6.5% (Non-Medicare)
CalPERS 2000-2019 Experience Study, Mortality
projected fully generational with Scale MP-2021
Long Term Expected Rate of Return
Target Allocation Expected Real
Asset Class Component CERBT-Strategy 1 Rate of Return
Global Equity
Fixed Income
TIPS
Commodities
REITS
Assumed Long-term Rate of Inflation
Expected Long-term Net Rate of Return, Rounded
49% 4.56%
23% 1.56%
5% -0.08%
3% 1.22%
20% 4.06%

2.50%

6.25%
The long-term expected real rates of return are presented as geometric means. * Policy target effective on the measurement date (June 30, 2022). Changes to the target investment allocation effective October 1, 2018 do not have a significant impact on the expected long-term rate of return.

Discount Rate
The rate of return is based on a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/ Aa or higher.
47 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits ( continued) Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB Fiduciary
Liability Net Position
(a) (b)
Balance at June 30, 2022 (Measurement Date) $ 6,819,222 $ 461,649 Changes recognized for the measurement period:

Service cost 113,263
Interest on TOL 423,688
Actual vs. expected experience
Assumption changes
Contributions - employer 396,382
Net investment income (76,076)
Benefit payments (306,930) (306,930)
Benefit payments (207)
Net changes 230,021 13,169
Balance at June 30, 2023 (Measurement date
June 30, 2022) $ 7,049,243 $ 474,818
Net OPEB
Liability
(a) - (b)
$ 6,357,573
113,263
423,688
(396,382)
76,076
207
216,852
$ 6,574,425
The only assumption change reflected during this period is the change in the discount rates as. required by GASB 75.

Sensitivity of the City's Net OPEB Liability to Changes in the Discount Rate The fo llowing presents the net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using a discount rate that is I percentage-point lower or 1 percentage-point higher than the current rate:

Net OPEB liability
1 % Decrease
(5.25%)
$ 7,523,799
Discount Rate
(6.25%)
$ 6,574,425
1 % Increase
(7.25%)
$ 5,791,956
Sensitivity of the City's Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:

Net OPEB liability
Health Care
Trend Rate -1 %
$ 5,750,457
Health Care
Current Trend
Rate
$ 6,574,425 $
Health Care
Trend Rate
+1%
7,410,972
48 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 8 - Post-Employment Health Care Benefits ( continued) Healthcare cost trend rate was assumed to start at 7% and grade down to 4 % for years 207 6 and thereafter.

OPEB Expense and Deferred Outflows/Inflows Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $595,907. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date $ 410,008 $ Difference between expected and actual experience 1,245,627 Change in assumptions 231 ,624
Net difference between projected and actual return on
investments 50,274
$ 460,282 $ 1,477,251
The City will recognize the Deferred Contributions in the next fiscal year. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ended
June 30
2024 $ (459,313)
2025 (458,749)
2026 (388,854)
2027 (87,395)
2028 (32,666)
Thereafter
49 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 9 - Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows or resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports $8,067,954 in deferred outflows related to net pension liability and $460,282 in deferred outflows related to net OPEB liability. See Note 7 and Note 8 for more details.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports $1 ,021 ,432 in deferred inflows related to net pension liability and $1,477,251 in deferred inflows related to net OPEB liability.

See Note 7 and Note 8 for more details.

Note 10-Risk Management
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSNRMA). The relationship between the City and CSNRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.

The City is covered for the first $1 ,000,000 of each general liability claim and $500,000 of each worker's compensation claim through the CSNRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City's account for liability losses under $10,000 and workers' compensation losses under $10,000. The CSNRMA purchases excess reinsurance from $1,000,000 to $15,000,000. The CSJVRMA participates in an excess pool which provides Workers' Compensation coverage from $500,000 to $1 ,500,000 and purchases excess reinsurance above $1 ,500,000 to the statutory limit.

The CSJVRMA is a consortium of 55 cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500, et. seq. The CSNRMA is governed by a Board of Directors, which meets three to four times each year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSNRMA. The financial statements of CSNRMA can be obtained at 1831 K Street, Sacramento, CA 95814.

The latest audited financial information and the most current info1mation available for CSJVRMA for fiscal year ended June 30, 2023 is as follows:

Total assets
Total liabilities
Net position
Total revenues
Total expenses
Increase/( decrease) in net position
$ 153,984,502
120,022,096
$ 33,962,406
$ 73,088,767
71 ,300,255
$ 1,788,512
50 CITY OF REEDLEY

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 11 - Contingencies
Federal and State Government Programs - The City participates in several federal and state grant programs. These programs have been audited, as needed, in accordance with the provisions of the Uniform Guidance and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures, which may be disallowed by the granting agencies, cannot be determined at this time.

The City expects such amounts, if any, to be immaterial.

Note 12 - Subsequent Events
The City evaluated subsequent events for recognition and disclosure through January 9, 2024, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023 that required recognition or disclosure in such financial statements.
51 REQUIRED SUPPLEMENTARY INFORMATION

CITY OF REEDLEY

BUDGET ARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental $ 2,893,498 $ 2,893,498 $ 3,934,083 $ 1,040,585 Taxes 10,066,830 10,066,830 10,602,278 535,448
Charges for services 1,040,143 1,040,143 1,287,637 247,494 Licenses, permits, and impact fees 472,500 472,500 697,286 224,786 Other 151,600 151,600 297,111 145,511
Investment income, rent income and unreali 51 ,351 51 ,351 124,065 72,714 Total revenue 14,675,922 14,675,922 16,942,460 2,266,538 Expenditures
Current
General government 2,128,436 2,128,436 2,121,764 6,672
Public ways and facilitie s 2,145,710 2,145,710 1,481 ,227 664,483 Public safety 7,016,713 7,016,713 6,942,482 74,231
Community services 3,047,209 3,047,209 2,858,308 188,901 Community development 1,719,538 1,719,538 1,089,826 629,712 Capital outlay 3,169,178 3,169,178 767,734 2,401 ,444
Total expenditures 19,226,784 19,226,784 15,261 ,341 3,965,443 Revenue over (under) expenditures (4,550,862) (4,550,862) 1,681 ,119 6,231,981 Other Financing Sources/(Uses)
Proceeds from sale of assets 12,894 12,894
Transfers in/( out) (7,859,254) {7,859,254) 2,441 ,897 10,301,151 Total other financing sources/(uses) (7,859,254) (7,859,254) 2,454,791 10,314,045 Net Change in Fund Balance $ (12,410,116) $ (12,410,116) 4,135,910 $ 16,546,026 Fund Balance
Beginnmg of year 7,247,428
End of year $ 11,383,338
52 CITY OF REEDLEY

BUDGETARY COMPARISON SCHEDULE

AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive/
(Negative)
Revenue
Intergovernmental
Total revenue
_$ ___ - _$ ___ - $ 3,068,969 $ 3,068,969
Expenditures
Current
Public ways and facilities
Capital outlay
Total expenditures
Revenue over (under) expenditures
Other Financing Sources/(Uses)
Transfers out
Total other financing sources/(uses)
Net Change in Fund Balance
Fund Balance
Beginning of year
End of year
(7,500)
1,498,776
2,390,000
3,888,776
(3,896,276)
2,328,414
2,328,414
$ (3,896,276) $
(7,500) 3,068,969 3,076,469
1,498,776 225,829 1,272,947
2,390,000 1,338,096 1,051 ,904
3,888,776 1,563,925 2,324,851
(3,896,276) 1,505,044 5,401,320
(3,896,276) 1,505,044 $ 5,401 ,320
967,553
$ 2,472,597
53 CITY OF REEDLEY

BUDGETARY COMPARISON SCHEDULE

DEVELOPMENT IMPACT FEES CAPITAL PROJECT FUND
YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
License, permits, and impact fees $ 460,250 $ 460,250 $ 1,543,464 $ 1,083,214 Investment, rent income, and umealized losses 8,750 8,750 35,948 27,198 Total revenue 469,000 469,000 1,579,412 1,110,412
Expenditures
Current
Public ways and facilities 989,121 989,121 4,391 984,730 Community services 2,184,538 2,184,538 2,184,538
Public Safety 183 183 37 146
Capital outlay 135l000 135l000 32l569 102A31
Total expenditures 3,308,842 3,308,842 36,997 3,271 ,845 Revenue over (under) expenditures (2,839,842) (2,839,842) 1,542,415 4,382,257 Other Financing Source s/(U s es)
Transfers in/( out) (25,002) (25,002) (25,002)
Total other financing sources/(uses) (25,002) (25,002) (25,002) Net Change in Fund Balance $ (2,864,844) $ (2,864,844) 1,5 17,413 $ 4,382,257 Fund Balance
Beginning of year 4,305,452
End of year $ 5,822,865
54 CITY OF REEDLEY
SCHEDULE OF CHAl'lGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS YEAR ENDED JUNE 30, 2023 Increase (Decrease)
Total OPEB Fiduciary NetOPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at June 30, 2022 (Measurement Date) $ 6,819,222 $ 461 ,649 $ 6,357,573 Changes recognized for the measurement period:

Service cost 113,263 113,263
Interest on TOL 423,688 423,688
Actual vs. expected experience
Assumption changes
Contributions - employer 396,382 (396,382)
Net investment income (76,076) 76,076
Benefit payments (306,930) (306,930)
Benefit payments (207) 207
Net changes 230,021 13,169 216,852
Balance at June 30, 2023 (Measurement date
June 30, 2022) $ 7,049,243 $ 474,818 $ 6,574,425
2018 2019 2020 2021 2022 2023
Net OPEB Liability/(Asset) $ 8,560,476 $ 8,921,105 $ 6,806,852 $6,953,479 $6,357,573 $ 6,574,425 Fiduciary Net Position as a percentage
of the total OPEB Liability 1.2% 1.8% 3.3% 4.0% 6.8% 6.7% Covered employee payroll* n/a $ 5,274,550 $ 5,029,499 $4,535,546 $ 4,531 ,132 $ 4,258,807 Net OPEB Liability as a percentage of covered
employee payroll n/a 169.1% 135.3% 153.3% 140.3% 154.4% * For the 12-month period ending on June 30, 202 1 (Measurement Date). 55 CITY OF REEDLEY

SCHEDULE OF THE CITY'S PROPORTION A TE SHARE OF NET PENSION LIABILITY LAST 10 YEARS*
AS OF JUNE 30, 2023
Miscellaneous
Proportiona te share of the
net pension liability as a
P roportion of the ne t P roportionate share of Cove red - employee pe rcentage of pension liability the net pension liability payroll covered-employee payroll 201 5 0.07020% $ 4,368,215 $ 3,808,708 114.69%
201 6 0.14007% $ 3,842,777 $ 4,114,174 93.40%
201 7 0.17859% $ 6,026,91 2 $ 4,109,603 146.65%
20[ 8 0. 18146% $ 7,040,068 $ 4,595,946 153.1 8%
201 9 0.18145% $ 6,838,5 1 l $ 4,825,079 14 1.73%
2020 0.18747% $ 7,507,227 $ 4,837,036 169.32%
202 [ 0.1941 6% $ 8,190,01 I $ 4,754,975 172. 24%
2022 0.24484% $ 4,649,020 $ 4,9 18,139 94.53%
2023 0.20669% $ 9,67 1,379 $ 4,780,857 202.29%
Safe
Proportiona te share of the
net pension liability as a
P rop01tion of the net P roportionate share of Cove red - employee pe rcentage of eension liabili~ the net eension liability ea):'!:Oll covered-emelol'ee ea:i!·oll 201 5 0. 11435% $ 4,289,120 $ 1,864,155 230.08%
201 6 0.10252% $ 1,47 1,3 16 $ 1,839,986 79.96%
20 17 0. 101 21% $ 5,241,949 $ 1,859,282 28 1. 93%
201 8 0.09928% $ 5,93 1,917 $ 2,044,067 290.20%
201 9 0. 10068% $ 5,907,6 [4 $ 2,137,197 276.42%
2020 0. 101 53% $ 6,338,3 13 $ 1,995,800 317.58%
202 1 0. 10364% $ 6,905,156 $ 2, 100,196 328.79%
2022 0. 12406% $ 4,354,036 $ 2,009,461 216.68%
2023 0.11 28 1% $ 7,75 1,555 $ 2,183,147 355.06%
*Fiscal year 2014-15 was the first year of implementation, therefore only nine years are shown.

Changes of Assumptions: None.
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Plan's fiduc iary net
position as a
Plan's fiduc iary net pe rcentage of the Tota l
position Pension Liability
19,64 1,792 81. 81%
19,808,667 83.75%
20,698,895 77.45%
22,427,176 76. ll¾
24,293,573 78.03%
25,49 1,960 77.25%
26,245,185 76.22%
30,346,917 86.72%
27,690,055 74. 11 %
P lan's fiduc iary net
position as a
Plan's fiducia1y net percentage of the Tota l
eosition Pension Liability
12,420,390 74.33%
13,462,868 76. 12%
13,459,556 7 1.97%
14,775, 186 71.35%
16,454,840 73. 58%
17,870,5 16 73.58%
17,540,296 7 1. 75%
20,364,944 82.39%
19,2 l5,517 71.26%
56 CITY OF REEDLEY

SCHEDULE OF CONTRIBUTIONS
LAST 10 YEARS*
AS OF JUNE 30, 2023
Contributions in
Contractually required relation to the
conh·ibution (actuarially actuarially determined
determined) contributions
2015 $ 456,053 $ (456,053)
2016 $ 283,216 $ (283,216)
2017 $ 561,583 $ (561,583)
2018 $ 624,739 $ (624,739)
20[9 $ 699,756 $ (699,756)
2020 $ 8 10,084 $ (8 10,084)
2021 $ 837,930 $ (837,930)
2022 $ 963,985 $ (963,985)
2023 $ 1,208,46 1 $ (1,208,46 1)
Contributions in
Contractua lly required relation to the
contribution (actuarially actuarially determined
determined) contributions
20 15 $ 479,745 $ (479,745)
2016 $ 533,9 11 $ (533,911)
20 17 $ 533,061 $ (533,061)
20 18 $ 587,174 $ (587,174)
20 19 $ 646,908 $ (646,908)
2020 $ 714,848 $ (714,848)
202 1 $ 768,490 $ (768,490)
2022 $ 869,214 $ (869,2 14)
2023 $ 1,077,069 $ (1,077,069)
Miscellaneous
Conh·ibutions
deficiency [excess) Covered-emeloyee ea~oll
$ $ 3,808,708
$ - $ 4,114,174
$ $ 4,109,603
$ $ 4,595,946
$ $ 4,825,079
$ $ 4,837,036
$ - $ 4,754,975
$ - $ 4,918,139
$ $ 4,780,857
Safety
Contributions
deficiency (excess) Covered-emeloyee eayroll
$ $ 1,864,155
$ $ 1,839,986
$ $ 1,859,282
$ $ 2,044,067
$ $ 2,137,197
$ - $ 1,995,800
$ $ 2,100,196
$ $ 2,009,461
$ $ 2,183,[47
*Fiscal year 20 14-15 was the first year of implementation, therefore only nine years are shown.

Contributions as a
percentage of coveredemelo):'ee ea~oll

10.85%

13.67%

13.59%

14.50%

16.75%

17.62%

19.60%

25.28%
Contributions as a
percentage of coveredemelo):'ee ea~oll
25 .74%

29.02%

28.67%

28.73%

30.27%

35.82%

36.59%

43.26%

49.34%
57 SUPPLEMENTAL ONLY INFORMATION

CITY OF REEDLEY

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENT AL FUNDS
JUNE 30, 2023
SEecial Re venue Funds
Public SB2 City Bond Local Stree t
Gas Safe~ Tax Planning Funds TransEortation Projects
ASSETS
Cash and investments $ $ 1,096,910 $ $ 99,507 $ 1,385,039 $ 3,095,073 Due from other governments 54,438 312,374 22,023 208,806 68 1,4 11 Total assets $ 54,438 $ 1,409,284 $ 22,023 $ 99,507 $ 1,593,845 $ 3,776,484

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 297 46,975 490 11,986 137,546 97,740 Retention payable 41 ,568
Due to other funds 52,713 21,533
Total liabilities 53,010 46,975 22,023 11,986 137,546 139,308 Fund Balance
Restric ted
Public ways and facilitie s 1,456,299 3,637,176
Public safety programs 1,428 1,362,309
Community services
Capital projects and improvements 87,521
Unassigned
Total fund balance 1,428 1,362,309 87,521 1,456,299 3,637,176 Total liabilities and fund balance $ 54,438 $ 1,409,284 $ 22,023 $ 99,507 $ 1,593,845 $ 3,776,484 58 CITY OF REEDLEY

COMBINING BALANCE SHEET
NON-MAJOR GOVERJ"\TMENTAL FUNDS
JUNE 30, 2023
Seecial Reve nue Funds
Public
Community Groundwater Education/
Facilities Prop 68 Downtown Blighted Treatment Government District Parks Streets caee Proeerties Se ttlement Access ASSETS
Cash and investments $ 217,488 $ - $ 23,793 $ 46,802 $ 1,365,439 $ 202 Due from other governments 44 6,23 1
Total assets $ 217,488 $ - $ 23,837 $ 46,802 $ 1,365,439 $ 6,433

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 8,975 15,869 32,901 2,040 Retention payable
Due to other funds
Total liabilities 8,975 15,869 32,901 2,040
Fund Balance
Restricted
Public ways and facilities 217,488 14,862 30,933
Public safety programs
Community services 4,393
Capital projects and improvements
Unassigned 1,332,538
Total fund balance 217,488 14,862 30,933 1,332,538 4,393 Total liabilities and fund balance $ 217,488 $ - $ 23,837 $ 46,802 $ 1,365,439 $ 6,433 59 CITY OF REEDLEY

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
S~ecial Revenue Funds
Community
Development
COPS Block Transitional Senior Landscape
Program Grant Housing Center Maintenance Total
ASSETS
Cash and investments $ 91,083 $ 21,386 $ - $ - $ 234,062 $ 7,676,784 Due from other governments 20,000 16,029 6,173 1,327,529 Total assets $ 111,083 $ 37,415 $ - $ 6,173 $ 234,062 $ 9,004,313

LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense 9,478 551 11 ,094 375,942 Retention payable 41 ,568
Due to other funds 5,622 79,868
Total liabilities 9,478 6,173 11 ,094 497,378
Fund Balance
Restricted
Public ways and facilities 222,968 5,579,726
Public safety programs 101,605 1,465,342
Community services 37,415 41 ,808
Capital projects and improvements 87,521
Unassigned 1,332,538
Total fund ba lance 101,605 37,415 222,968 8,506,935
Tota l liabilities and fund balance $ lll,083 $ 37,415 $ - $ 6,173 $ 234,062 $ 9,004,313 60 CITY OF REEDLEY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Seecial Revenue Funds
Gas Public SB2 City Bond
Tax Safe tr Planning Grant Funds
Revenue
Intergove rnmental $ $ $ 82,399 $ $
Taxes and assessments 623,807 1,737,677
Other revenue 722
Investment income/(unrea lized losses) 91 6,277 676
Tota l reve nue 623,898 1,744,676 82,399 676
Expenditures
Current
Public ways and fa cilities 595,696 11 ,986
Public sa fe ty 1,209,429
Community deve lopment 82,399 60,517
Capital outlay 232,627
Total expenditures 595,696 1,442,056 82,399 72,503
Revenue over (under) expenditures 28,202 302,620 (7 1,827) Other financing sources/(uses)
Sale of asse ts
Operating transfers in/( out), net (26,774) (24,387)
Total other fmancing sources/(uses) (26774) (24.387)
Change in Fund Balance 1,428 278,233 (7 1,827)
Fund Balance
Beginning of yea r 1,084,076 159,348
End of year 1,428 $ 1,362,309 $ $ 87,521 $
Local Street
Trans eortation Projects
1,571,090 $ 889,463
1,455,514
11 ,537
19,734 23,362
1,602,361 2,368,339
683,8 15 548,714
25,214 83 1,365
709,029 1,380,079
893,332 988,260
9,523
(1 61,462) (9,661)
(1 51.939} (9661)
741 ,393 978,599
714,906 2,658,577
1,456,299 $ 3,637,176
61 CITY OF REEDLEY

COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENT AL FUNDS
YEAR ENDED JUNE 30, 2023
Reve nue
Intergovernmenta I
Taxes and assessments
Charges for services
Other revenue
Investment income/(unrealized losses)
Tota l revenue
Expenditures
Current
General government
Public ways and facilities
Public safety
Community development
Capital outlay
Tota l expenditures
Revenue over (under) expe nditures
Other financing sources/(uses)
Sale of assets
Operating transfers in/(out), net
Total other fmancing sources/(uses)
Change in Fund Balance
Fund Balance
Beginning of year
End of yea r
Community
Facilities
District
$
1,078,772
(11 ,261)
1,067,5 11
18,899
18,899
1,048,612
(889,000)
(889 000)
159,612
57,876
217,488 $
Special Revenue Funds
Prop 68 Downtown Blighte d
Parks Streets cape Properties
151 ,050 $ $ $
22,465
1,647
96 242
151,050 24,208 242
30,169 34,668
3,837
147,213
151 ,050 30,169 34,668
(5,96 1) (34,426)
(5,961) (34,426)
20,823 65,359
$ 14,862 $ 30,933 $
Public
Groundwate r Educational/
Treatme nt Governme nt
Settlement Access
$
25,433
13,620 (489)
13,620 24,944
40,150
229,239
229,239 40,150
(2 15,6 19) (15,206)
(2,328,414)
(2.3284 14)
(2,544,033) ( 15,206)
3,876,571 19,599
1,332,538 $ 4,393
62 CITY OF REEDLEY
COMBINING STATEMENT OF REVENUE, EXPENDITURES Al\TJ) CHANGES IN FUND BALANCE

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
S~ecial Revenue Funds
Community
Development
COPS Block Transitional Senior Landscape
Program Grant Housing Center Maintenance Total
Revenue
Intergovernmental $ 165,271 $ 16,029 $ $ 22,952 $ $ 2,898,254 Taxes and assessments 259,835 5,181,038
Charges for services 22,465
Other revenue 110 2 2,524 22 16,564
Investment income/(unrealized losses) 988 120 1,566 55,022 Total revenue 166,369 16,151 25,476 261,423 8, 173,343
Expenditures
ClllTent
General government 40,150
Public ways and facilities 238,977 2,392, 163
Public safety 11 9,037 1,328,466
Community development 1,458 40,837 189,048
Capital outlay 17,8 13 1,254,232
Total expenditures 119,037 1,458 40,837 256,790 5,204,059 Revenue over ( under) expenditmes 47,332 14,693 (15,361) 4,633 2,969,284 Other financing sources/(uses)
Sa le of assets 9,523
Operating transfers in/( out), net (3,710) 15,361 (4,326) (3,432,373) Total other financing somces/(uses) (3 710) 15 361 (4 322) (3 422 850) Change in Fund Balance 43,622 14,693 307 (453,566)
Fund Balance
Beginning of year 57,983 22,722 222,661 8,960,501
End of year $ 101 ,605 $ 37,415 $ $ $ 222,968 $ 8,506,935 63 CITY OF REEDLEY

SCHEDULE OF NET REVENUE AVAILABLE FOR DEBT SERVICE
JUNE 30, 2023
Business-Type Activities - Enterprise Funds
Sewer Water
Operating Revenue
Charges for services $ 5,913,302 $ 4,068,694
Other revenue 54,398 253,492
Total Available Revenues 5,967,700 4,322,186
Operating Expense
Personne l 1,763,422 1,378,486
Supplies, materials, utilities and other 1,201,844 1,065,827 Contractual services 437,990 105,242
Total operations and maintenance 3,403,256 2,549,555
Nonoperating Revenue /(Expense)
Investment income 35,949 12,044
Other 2,103 20,019
Tota l nonoperating revenue/( expense) 35,949 12,044
Total Net Revenue Available for Debt Service 2,600,393 1,784,675 Debt Service Re quire me nts
2016 Sewer Refunding Revenue Bonds 221 ,200
2017 Water Refunding Revenue Bonds 864,281
2019 Wastewater Refunding Revenue Bonds 1,221 ,043
Total Debt Service 1,442,243 864,281
Net Revenue after Debt Service $ 1,158,150 $ 920,394
Debt Service Cove rage Ratio 1.80 2.06
64 BRYANT L.JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L Jolley, C.P.A.

Ryan P. Jolley C.P.A.

Darryl L Smith C.P.A.

Luis A. Perez C.P.A.

Lan T Kimoto

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and City Council
City of Reedley, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of City of Reedley (the "City"), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 9, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, we do not express an opinion on the effectiveness of City's internal control.

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

January 9, 2024
66 BRYANT L.JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant LJolley, C.P.A.

Ryan P.Jolley C.P.A.

Darryl L Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Reedley, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Reedley (the "City"), California's compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2023. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

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

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, mles, and provisions of contracts or grant agreements applicable to the City's federal programs.
901 "N" STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.

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

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 68 Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 69 CITY OF REEDLEY

SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED JUNE 30, 2023
Assitance
Federal Grantor/Pass-Through Listing
Grantor/ProB!:am Title Number
U.S. De12artment for Housing and Communi!Y Develo12ment Passed through County of Fresno:

Community Development Block Grants/
Senior Meals 14.218
Community Development Block Grants/
Entitlement Grants 14.218
Total U .S. Department of Housing and Community Development U.S. Department of Justice
Passed through County of Fresno:

Bullet Proof Vest Program 16.607
Total U.S. Department of Justice
U.S. De12artment of Transpmiation
Passed through the Federal Aviation Administration:

Airport Improvement Program 20.106
Passed through the California Department of
Transportation:

Highway Planning and Construction 20.205
Highway Planning and Construction 20.205
Highway Planning and Construction 20.205
Highway Planning and Construction 20.205
Highway Planning and Construction 20.205
Total U .S. Department of Transportation
U.S. Department of Treasury
Passed Through State of California
Coronavirus State and Local Fiscal Recovery 21.027
Coronavirus State and Local Fiscal Recovery 21.027
Total U.S. Depa1iment of Treasury
U .S. Depaiiment of Homeland Securi!Y
Passed through the County of Fresno:

FEMA 97.067
Total U.S. Department of Homeland Security
U .S. De12artment of Health and Human Services
Passed through the Fresno-Madera Area
Agency on Aging:

Special Programs for the Aging, Title III
Part C, Nutrition Services 93.045
Total U .S. Department of Health and Human Services
Total Federal Expenditures
Agency or
Pass-Through Federal
Number Expenditures
NIA $ 90,588
21571 35,877
126,465
NIA 3,423
3,423
NIA 1,495,270
CML-5216(055) 3,101
ATPL-5216(059) 60,432
STPL-5216(060) 11 ,827
CML-5216(058) 694,745
STPL-5216(057) 17,138
2,282,513
Corona virus Recovery Fund 11 ,352
ARPA 1,563,924
1,575,276
NIA 16,671
16,671
NIA 22,952
22,952
$ 4,027,300
70 CITY OF REEDLEY

NOTES SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED JUNE 30, 2023
Note 1 - Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEF A) presents the activity of all federal award programs of the City of Reedley, California (the City). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California, are included in the SEFA. The City's reporting entity is defined in Note 1 to the City's basic financial statements.

Note 2 - Basis of Accounting
The accompanying SEF A is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1 to the City's basic financial statements. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the SEFA may differ from amounts presented in the basic financial statements.

Note 3 - Assitance Listing Numbers
The Assistance Listing Numbers included in the accompanying SEF A were determined based on program name, review of grant contract information, and the Office of Management and Budget's Catalog of Federal Domestic Assistance.

Note 4 - Relationship to the Financial Statements
Expenditures of federal awards are reported in the City's basic financial statements as expenditures/expenses in the General Fund, nonmajor special revenue funds, nonmajor capital project funds, and the enterprise funds.

Note 5 - Indirect Cost Rate
The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414. 71 CITY OF REEDLEY

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
A. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:

Internal control over financial reporting:
• Material weaknesses identified? D
• Significant deficiencies identified that are
not considered to be material weaknesses? D
• Non-compliance material to financial
statements noted? D
Federal A wards
Internal control over major programs:
• Material weaknesses identified? •
• Significant deficiencies identified that are
not considered to be material weaknesses? •
Type of auditor's report issued on compliance for
maJor programs:

Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.5 l 6(a)? •
Identification of Major Programs
Unmodified
Yes No
Yes None reported
Yes No
Yes ~ No
Yes ~ None reported
Unmodified
Yes ~ No
Assitance Listing Number Name of Federal Program or Cluster

20.1 06 Airport Improvement Program
Dollar threshold used to distinguish between
Type A and Type B programs:

Auditee qualified as low-risk auditee?
$750,000
Yes • No
72 CITY OF REEDLEY

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2022
None.
73 BACKGROUND
• 2021- FRANCHISE AGREEMENT WITH MID-VALLEY DISPOSAL
• ROLL-OFF SERVICES

ILLEGAL ROLL OFF PROVIDERS
• No City of Reedley Business License
• Contact Information
• Insured?
• State Reporting Requirements
• What materials leave the City
• How much material (in tons)
• Encroachment Permit
• Where they can safely place the container
• What material do they haul off and how much

SOLID WASTE ORDINANCE AMENDMENT
• Add language that would allow the City to impound illegal containers.
• Provide a notice that the container must be removed within 3 days or it will be removed and stored at a City facility. Owner would then be responsible for all costs associated with the impound of the container and material disposal.

Reedley City CouncilJanuary 23, 2024

Reedley City Council
January 23, 2024