San Joaquin City Council
September 3, 2024

SAN JOAQUIN CITY COUNCIL REGULAR MEETING

SAN JOAQUIN COUNCIL CHAMBERS
21991 COLORADO AVE (A)

SAN JOAQUIN, CA
TUESDAY, SEPTEMBER 3, 2024
6:00 P.M.

MEMBERS OF THE COUNCIL WILL BE IN ATTENDANCE AT THE MEETING.

MEMBERS OF THE PUBLIC MAY ATTEND AND PARTICIPATE IN THIS MEETING

IN PERSON OR BY ZOOM OR SUBMIT WRITTEN COMMENTS AT CITY HALL OR BY EMAIL PRIOR TO THE MEETING AT [email protected].

ZOOM INFORMATION:
https://us02web.zoom.us/j/82278573209?pwd=SVJigvEXfMM17gGGqyjHKcAt8IUGqM.1 MEETING ID: 822 7857 3209
PASSCODE: 844232
TELEPHONE NUMBER: 1-669-900-9128
The City Council welcomes you. All attendees are advised that pagers, cell phones, and any other communication devices should be powered off upon entering the Council meeting.

The City Council may consider and act on an agenda item in any order it deems appropriate. Actual timed items may be heard later but not before the time set on agenda. Persons interested in an item listed on the agenda are advised to be present throughout the meeting to ensure their presence when the item is called.

For each agenda item considered by the Council there will first be a staff presentation followed by a presentation from the involved individuals. Public comments from those in attendance will then be taken. All public comments will be limited to three minutes per person.

1. CALL TO ORDER – PLEDGE OF ALLEGIANCE – ROLL CALL
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Julia Hernandez
Adam Flores-Cornejo
Cristina Covarrubia
Abel Lua
Martha Mejia Councilmember

2. APPROVAL OF AGENDA –
______________________________________________________________ 21900 Colorado Avenue, P.O. Box 758, San Joaquin, CA 93660 (559) 693-4311, (559) 693-2193 (fax), www.cityofsanjoaquin.org

3. PRESENTATION –

4. PROCLAMATION –

5. CONSENT CALENDAR –
All items listed under Consent Calendar are considered to be routine and will be enacted by one motion. For discussion of any Consent Item, it will be considered separately at the request of any member of the City Council or any person in the audience - A. SUBJECT: Minutes of the Regular City Council Meeting of August 6, 2024.

RECOMMENDATION: Council approve the Minutes of the Regular City Council Meeting of August 6, 2024. (Enclosure P. 1, Action Item) B. SUBJECT: Warrants #’s 055467-055518.

RECOMMENDATION: Council approve Warrant #’s 055467-055518 as presented. (Enclosure P. 4, Action Item)

6. SHERIFF REPORT – Informational Only

7. CITY MANAGER REPORT – Informational Only

8. CITY ATTORNEY REPORT – Informational Only

9. COUNCILMEMBER COMMUNICATIONS/ANNOUNCEMENTS/AGENDA
ITEMS –
This portion of the meeting is reserved for the Mayor and Councilmembers (i) to make brief reports on boards, committees, and other public agencies, and at public events, (ii) to initiate new matters and to request updates, (iii) and to initiate new agenda items.

Under this section the Council may take action only on items specifically agendized and which meet other requirements for actions.

10. PUBLIC FORUM –
This part of the meeting is for members of the public to address the City Council regarding items that are not listed on the agenda and within the subject matter jurisdiction of the City Council of the City of San Joaquin. If you wish to comment on an item which is not on the agenda, you may do so at this time and each speaker is limited to three (3) minutes.

Speakers are asked, but not required, to state their name and address and to use the microphone. The Council is prohibited by law from taking action on items not on the agenda. Discussion shall be limited to referring the item to staff and possible scheduling on a future council agenda.

11. PUBLIC HEARINGS –

RECESS COUNCIL MEETING AND MEET AS PLANNING COMMISSION

12. PLANNING COMMISSION –
A. SUBJECT: Consideration of an Extension for Tentative Tract Map No. 6152 for Future Development of the 55-Single-Family-Lot Subdivision of APN: 033-260-15S for One Year.

RECOMMENDATION: Conduct Public Hearing and consider approval of Resolution No. 2024-03, that the City Council (i) review and consider the analysis provided in the Addendum to the General Plan EIR (Exhibit B), finding that none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred; and (ii) adopt Resolution approving the extension for Tentative Map No. 6152 (Enclosure P. 13, Exhibit B on file in Clerk’s Office and on City Website, Action Item)
B. SUBJECT: Consideration of an Extension for Tentative Tract Map No. 6361 for Future Development of the 32-Single-Family-Lot Subdivision of APN: 033-040-95S for One Year.

RECOMMENDATION: Conduct Public Hearing and consider approval of Resolution No. 2024-04, that the City Council (i) review and consider the analysis provided in the Addendum to the General Plan EIR (Exhibit B), finding that none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred; and (ii) adopt Resolution approving the extension for Tentative Map No. 6361 (Enclosure P. 21, Exhibit B on file in Clerk’s Office and on City Website, Action Item)

ADJOURN THE PLANNING COMMISSION TO RECONVENE AS CITY COUNCIL

13. OLD BUSINESS –

14. NEW BUSINESS –
A. SUBJECT: Council review of the FY 2021-2022 Audit and Financial Statements.

RECOMMENDATION: Council review and accept the Audit and Financial Statements for FY 2021-2022. (Enclosure P. 28, Action Item) B. SUBJECT: Authorizing Youth Recreational Funding Program.

RECOMMENDATION: Council adopt Resolution No. 2024-30, authorizing the use of funds per State Budget Act of 2021 for Youth Recreational Funding Program Mini Grants. (Enclosure P. 96, Action Item)
C. SUBJECT: Authorizing the use of American Rescue Plan Act Funds for Fiscal Year 2023-24 and 2024-25 for qualifying activities, and authorizing an emergency repair of the Manning Lift Station.

RECOMMENDATION: Council adopt Resolution No. 2024-31 Authorizing Budget Amendment and the use of American Rescue Plan Act funds and Resolution No. 2024-32, authorizing the City Manager to perform emergency repairs on the Manning Lift Station in an amount not to exceed $60,000. (Enclosure P. 104, Action Item) D. SUBJECT: Council discussion of Health Insurance Benefits cost to employees.

RECOMMENDATION: Council discuss and provide direction to staff. (No enclosure)

15. CLOSED SESSION –

16. ADJOURN MEETING –
NOTICE OF ADA COMPLIANCE: If you or anyone in your party needs assistance in order to attend the City Council meeting, or if you require auxiliary aids or services, e.g. hearing aids or signing services to make a presentation to the City Council, the City is happy to assist you. Please contact City Office at (559) 693-4311 so such aids or services can be arranged. Request may also be made by email to the City Clerk at [email protected] or mailed to San Joaquin City Hall, P.O. Box 758, San Joaquin, CA 93660. Accommodations should be requested as early as possible as additional time may be required in order to provide the request accommodation is suggested.

NOTICE OF AVAILABILITY OF AGENDA MATERIALS: Any writings or documents provided to a majority of the City Council regarding within 72 hours of the meeting regarding any items on this agenda will be made available for public inspection at the City Clerk’s Office located at City Hall, 21900 Colorado Avenue during normal business hours and on the City’s website at www.cityofsanjoaquin.org
LEVINE ACT DISCLOSURE. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the City Council is required to disclose on the record any campaign contribution, including aggregated contributions, of more than $250 made by the party or the party’s agents within the preceding 12 months to any City official.

Participants and agents are requested to make this disclosure as well.

The disclosure should be made when the agenda item is called and must include the name of the party, participant, or agent, and any other person making the contribution, the name of the recipient, the amount of the contribution, and the date the contribution was made. Council Members are also required to make such disclosures and recuse themselves.

CONFLICT OF INTEREST. City Council Members with a conflict of interest under the Political Reform Act are required to make disclosure when the item is called and recuse themselves.

CERTIFICATION OF POSTING
I, Matt Flood, City Clerk of the City of San Joaquin, do hereby declare that the foregoing agenda for the regular San Joaquin City Council Meeting of Tuesday, September 3, 2024 was posted at the following locations: City Hall, 21900 Colorado Avenue, San Joaquin Senior Center, 21991 Colorado Ave (B) and US Post Office 8667 Ninth Street on Friday, August 30, 2024 by 5:00 P.M. *NEXT REGULAR COUNCIL MEETING WILL BE TUESDAY, OCTOBER 1, 2024*

SAN JOAQUIN CITY COUNCIL REGULAR MEETING

MINUTES
TUESDAY, AUGUST 6, 2024

1. CALL TO ORDER – PLEDGE OF ALLEGIANCE – ROLL CALL
Mayor Julia Hernandez Present
Mayor Pro Tem Adam Flores-Cornejo Present
Councilmember Cristina Covarrubia Absent
Councilmember Abel Lua Present
Councilmember Martha Mejia Present
The Meeting was called to order and the pledge of allegiance led by Mayor Hernandez at 6:01pm.

2. APPROVAL OF AGENDA
City Manager Cabrera notified Council of a revised resolution for Consent Calendar Item “D” that was issued, and requested that it be pulled for separate consideration and explanation. A motion was made by Councilmember Lua to approve the agenda as modified, seconded by Mayor Pro Tem Flores-Cornejo. Motion passed 4-0 (Absent: Covarrubia).

3. PRESENTATION

4. PROCLAMATION

5. CONSENT CALENDAR
A. SUBJECT: Minutes of the Regular City Council Meeting of July 2, 2024.

RECOMMENDATION: Council approve the Minutes of the Regular City Council Meeting of July 2, 2024.

B. SUBJECT: Warrants #’s 055367-055466.

RECOMMENDATION: Council approve Warrant #’s 055367-055466 as presented.

C. SUBJECT: Submitting Annual Measure C Funds Claim for Fiscal Year 2024-2025. ______________________________________________________________ 21900 Colorado Avenue, P.O. Box 758, San Joaquin, CA 93660 (559) 693-4311, (559) 693-2193 (fax), www.cityofsanjoaquin.org 1 RECOMMENDATION: Council adopt Resolution No. 2024-28, concerning Local Transportation Purpose Funds Extension (Measure “C” Extension).

A motion was made by Mayor Hernandez to approve item A through C of the Consent Calendar, seconded by Mayor Pro Tem Flores-Cornejo. Motion passed 4-0 (Absent:

Covarrubia).

D. SUBJECT: Revision of Resolution No. 2024-19, Confirming Diagram and Assessments for the Annual Levy for 2024-205 Assessment District No. 92-3.

RECOMMENDATION: Council approve the revision of Resolution No. 2024-19, the diagram and assessments for the annual levy of the City of San Joaquin’s Landscaping and Lighting Maintenance District No. 92-3 for Fiscal Year 2024-2025 and direct the Deputy City Clerk to file the annual Engineer’s Report with the County of Fresno, California, allowing it to be recorded with the attached Engineer’s Report with exhibits.

A motion was made by Mayor Hernandez to approve item D of the Consent Calendar, seconded by Councilmember Lua. Motion passed 4-0 (Absent: Covarrubia).

6. SHERIFF REPORT
Deputy Swain provided the monthly report.

7. CITY MANAGER REPORT
City Manager Cabrera provided her report.

8. CITY ATTORNEY REPORT

9. COUNCILMEMBER COMMUNICATIONS/ANNOUNCEMENTS/AGENDA ITEMS Members of the Council shared their reports.

10. PUBLIC FORUM
Members of the public spoke.

11. PUBLIC HEARINGS
A. SUBJECT: Adoption of the Fresno Council of Governments (COG) Active Transportation Plan (ATP).

RECOMMENDATION: Council adopt Resolution No. 2024-29, approving the adoption of the 2024 Fresno County Regional Active Transportation Plan for the City of San Joaquin.
2 Mayor Hernandez opened the hearing to the public at 6:45pm and, seeing no one interested in making comment, closed it in that same minute. A motion was made by Mayor Hernandez to approve the item, seconded by Mayor Pro Tem Flores-Cornejo. Motion passed 4-0 (Absent: Covarrubia).

B. SUBJECT: Discussion on the State Community Development Block Grant (CDBG) Application and possible activities and projects.

RECOMMENDATION: Council 1) review the program and available funding options and staff recommendations; 2) open the public hearing; 3) receive public comment regarding the Community Development Block Grant (CDBG) program and possible activities and projects to be considered for funding under the upcoming NOFA process; 4) close the public hearing; 5) discuss potential applications/recommendations; and 6) direct staff to prepare a CDBG application for Council consideration.

Mayor Hernandez opened the hearing to the public at 6:52pm and, seeing no one interested in making comment, closed it in that same minute. Council provided direction to staff to prepare an application with staff’s recommended program goals for presentation to Council at a later date.

12. SAN JOAQUIN PLANNING COMMISSION

13. OLD BUSINESS

14. NEW BUSINESS
A. SUBJECT: Authorizing Delegates for the Upcoming League of California Cities Conference.

RECOMMENDATION: Council authorize a Voting Delegate and up to two alternates for the upcoming issues to be voted upon at the 2024 LOCC Annual Conference.

Council provided direction to staff to list Mayor Pro Tem Flores-Cornejo as the Representative and Councilmember Covarrubia as Alternate.

15. CLOSED SESSION

16. ADJOURN MEETING
At 6:57pm with no other business remaining before the City Council, a motion was made by Mayor Pro Tem Flores-Cornejo to adjourn, seconded by Councilmember Lua. Motion passed 4-0 (Absent: Covarrubia).
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1 STAFF REPORT TO PLANNING COMMISSION
September 3, 2024
TO: Planning Commission of the City of San Joaquin
FROM: Elizabeth Cabrera, City Manager
SUBJECT: Extension for Tentative Tract Map No. 6152 for Future Development of the 55- Single-Family-Lot Subdivision of APN: 033-260-15S for One Year Recommendation:

Recommend that the Planning Commission (i) review and consider the analysis provided in the Addendum to the General Plan EIR (Exhibit B), finding that none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred; and (ii) adopt Resolution approving the second extension for Tentative Map No. 6152 Executive Summary
San Joaquin Properties, LLC is requesting a second Tentative Tract Map (TTM) Extension for future development of the 55-single-family-lot subdivision on APN: 033-260-15S. The current parcel is 11.2-acres, rectangularly shaped, and located on the northwest corner of Main Street and Arizona Street (see Exhibit A). The parcel is located within city limits, designated by the General Plan as Low Density Residential and currently zoned R-1. Extension of the TTM would allow an additional year for development and approval of a Final Map to subdivide the parcel into 55 lots for future development of single-family homes, three internal residential streets, and trail and park improvements required by Parcel Map 18-01, as shown in Exhibit A of the resolution. These lots would be a minimum of 6,000 SF with an average of 6,548 SF. The property is not in a flood hazard zone. Per the San Joaquin Municipal Code, requests for extension may be considered by the Planning Commission.

CEQA Determination
This project requires compliance with the California Environmental Quality Act (CEQA).

Per the California Environmental Quality Act (CEQA), an Addendum to the City’s General Plan EIR has been reviewed by staff and found that none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred. The City Council shall review and consider this analysis prior to making a decision on the map extensions for TSM No. 6152. The Addendum is on file in the Clerk's Office. 13 2
Background
A proposed Tentative Tract Map (TTM) was submitted on May 5, 2021, and approved by the City Council on October 5, 2021, to further subdivide TPM 18-01. The City Engineer provided a list of conditions, items required to be included on the final map for the final map to be found acceptable to the City for final approval. The Applicant agreed to these additional conditions for the project listed below as part of obtaining tentative tract map approval, including identified required dedications for Parcel Map 18-01. All other City and CEQA requirements for the proposed TTM have been met. A one year extension for TTM 6152 was approved in August 2023.

City staff have reviewed the current conditions of approval and do not recommend any changes or additions to them.
14 RESOLUTION NO. 2024-03

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF SAN JOAQUIN, CALIFORNIA APPROVING
A SECOND EXTENSION OF TENTATIVE TRACT MAP NO.
6152
WHEREAS, San Joaquin Properties LLC (“Developer”) submitted Tentative Tract Map No. 6152 to subdivide a parcel into fifty-five lots (“Project”); and WHEREAS, on October 5, 2021, the City Council of the City of San Joaquin conducted a duly noticed public hearing and approved TTM 6152 with conditions.

WHEREAS, Developer requested a first extension of TTM 6152; and WHEREAS, on August 1, 2023, the Planning Commission approved the requested one year extension.

WHEREAS, Developer requested a second extension of TTM 6152; and WHEREAS, on September 3, 2024 the Planning Commission of the City of San Joaquin conducted a duly noticed public hearing on the Project. At the hearing, all interested persons were given an opportunity to be heard.

WHEREAS, the Planning Commission received and considered the staff report and all the information, evidence, and testimony presented in connection with this Project.

WHEREAS, the Planning Commission reviewed and considered the City of San Joaquin General Plan Environmental Impact Report Addendum prior to making a decision on Tentative Tract Map No. 6152.

WHEREAS, at the close of the public hearing, the Planning Commission adopted a motion to adopt this Resolution approving the Addendum and recommending approval to the City Council of Tentative Tract Map No. 6152 as conditioned in the Staff Report.

WHEREAS, the Planning Commission approved a one year extension of Tentative Tract Map No. 6152 at their duly noticed hearing on September 3, 2023.

NOW, THEREFORE, the Planning Commission of the City of San Joaquin finds, determines, and resolves as follows:

1. The Planning Commission finds that all of the facts set forth in the Recitals of this Resolution are true and correct and are incorporated herein by reference.

2. The Planning Commission finds none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have not occurred and the General Plan Environmental Impact Report Addendum considered at the public hearing and on file in the City Clerk’s Office is still accurate. 15 3. The Planning Commission hereby extends for one year from date of this resolution Tentative Tract Map No. 6152 as depicted in Exhibit A and subject to the original conditions all of which are incorporated herein by reference.

4. The City Clerk shall certify the adoption of the Resolution.

5. This Resolution is effective upon adoption.
16 I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the Planning Commission of the City of San Joaquin at a regular meeting thereof held on the ___3rd_____ day of September, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Julia Hernandez, Mayor
City of San Joaquin
ATTEST
By:

Matt Flood, City Clerk
City of San Joaquin
Exhibit A: Tentative Tract Map No. 6152
Exhibit B: City of San Joaquin General Plan Environmental Impact Report Addendum 17 18
Exhibit A:

Tentative Tract Map No. 6152
19 Exhibit B (On File):

City of San Joaquin General Plan Environmental Impact Report Addendum 20 1

STAFF REPORT TO PLANNING COMMISSION
September 3, 2024
TO: Planning Commission of the City of San Joaquin
FROM: Elizabeth Cabrera, City Manager
SUBJECT: Second Extension for Tentative Tract Map No. 6361 for Future Development of the 32-Single-Family-Lot Subdivision of APN: 033-040-95S for One Year Recommendation:

Recommend that the Planning Commission (i) review and consider the analysis provided in the Addendum to the General Plan EIR (Exhibit B), finding that none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred; and (ii) adopt Resolution approving the second extension for Tentative Map No. 6361 Executive Summary
San Joaquin Properties, LLC submitted a Tentative Tract Map (TTM) second extension for future development of the 32-single-family-lot subdivision on APN: 033-260-95S. The current parcel is 7-acres, triangularly shaped, and located on the southwest corner of Main Street and Elm Avenue (See Exhibit A). The parcel is located within city limits, designated by the General Plan as Low Density Residential and currently zoned R-1. Extension of the tentative tract map would allow an additional year for development and approval of a Final Map to subdivide the parcel into 32 lots for future development of single-family homes, three internal residential streets, and trail and park improvements required by Parcel Map 18-01, as shown in Exhibit A of the resolution. These lots would be a minimum of 6,000 SF with an average of 6,548 SF. The property is not in a flood hazard zone.

CEQA Determination
This project requires compliance with the California Environmental Quality Act (CEQA).

Per the California Environmental Quality Act (CEQA), an Addendum to the City’s General Plan EIR has been reviewed by staff and found that none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred. The City Council shall review and consider this analysis prior to making a decision on the map extensions for TSM No. 6361. The Addendum is on file in the Clerk's Office.

Background
A proposed Tentative Tract Map (TTM) was submitted on May 5, 2021, and approved by the City Council on October 5, 2021, to further subdivide TPM 18-01. The City Engineer provided a list of 21 2
conditions, items required to be included on the final map for the final map to be found acceptable to the City for final approval. The Applicant agreed to these additional conditions for the project listed below as part of obtaining tentative tract map approval, including identified required dedications for Parcel Map 18-01. All other City and CEQA requirements for the proposed TTM have been met. A one year extension for TTM 6361 was approved in August 2023.

City staff have reviewed the current conditions of approval and do not recommend any changes or additions to them.
22 RESOLUTION NO. 2024-04

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF SAN JOAQUIN, CALIFORNIA APPROVING
A SECOND EXTENSION OF TENTATIVE TRACT MAP NO.
6361
WHEREAS, San Joaquin Properties LLC (“Developer”) submitted Tentative Tract Map No. 6361 to subdivide a parcel into fifty-five lots (“Project”); and WHEREAS, on October 5, 2021, the City Council of the City of San Joaquin conducted a duly noticed public hearing and approved TTM 6361 with conditions.

WHEREAS, Developer requested a first extension of TTM 6361; and WHEREAS, on August 1, 2023, the Planning Commission approved the requested one year extension.

WHEREAS, Developer requested a second extension of TTM 6361; and WHEREAS, on September 3, 2024 the Planning Commission of the City of San Joaquin conducted a duly noticed public hearing on the Project. At the hearing, all interested persons were given an opportunity to be heard.

WHEREAS, the Planning Commission received and considered the staff report and all the information, evidence, and testimony presented in connection with this Project.

WHEREAS, the Planning Commission reviewed and considered the City of San Joaquin General Plan Environmental Impact Report Addendum prior to making a decision on Tentative Tract Map No. 6361.

WHEREAS, at the close of the public hearing, the Planning Commission adopted a motion to adopt this Resolution approving the Addendum and recommending approval to the City Council of Tentative Tract Map No. 6361 as conditioned in the Staff Report.

WHEREAS, the Planning Commission approved a one year extension of Tentative Tract Map No. 6361 at their duly noticed hearing on September 3, 2023.

NOW, THEREFORE, the Planning Commission of the City of San Joaquin finds, determines, and resolves as follows:

1. The Planning Commission finds that all of the facts set forth in the Recitals of this Resolution are true and correct and are incorporated herein by reference.

2. The Planning Commission finds none of the conditions described in CEQA Section 15162 calling for the preparation of a subsequent EIR or negative declaration have not occurred and the General Plan Environmental Impact Report Addendum considered at the public hearing and on file in the City Clerk’s Office is still accurate. 23 3. The Planning Commission hereby extends for one year from date of this resolution Tentative Tract Map No. 6361 as depicted in Exhibit A and subject to conditions in Exhibit B to this resolution all of which are incorporated herein by reference.

4. The City Clerk shall certify the adoption of the Resolution.

5. This Resolution is effective upon adoption.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the Planning Commission of the City of San Joaquin at a regular meeting thereof held on the ___3rd_____ day of September, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Julia Hernandez, Mayor
City of San Joaquin
ATTEST
By:

Matt Flood, City Clerk
City of San Joaquin
Exhibit A: Tentative Tract Map No. 6361
Exhibit B: City of San Joaquin General Plan Environmental Impact Report Addendum 24 Exhibit A:

Tentative Tract Map No. 6361
25 26
Exhibit B (On File):

City of San Joaquin General Plan Environmental Impact Report Addendum 27 CITY OF SAN JOAQUIN
INDEPENDENT AUDITOR’S REPORT
AND

FINANCIAL STATEMENTS
JUNE 30, 2022
28 C O N T E N T S
Page
INDEPENDENT AUDITOR’S REPORT 1 – 3
BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet – Governmental Funds 6
Reconciliation of Total Governmental Fund Balance to
Net Position of Governmental Activities 7
Statement of Revenue, Expenditures and Changes in
Fund Balance – Governmental Funds 8
Reconciliation of Statement of Revenue, Expenditures
and Changes in Fund Balance of Governmental Funds
to the Statement of Activities 9
Statement of Net Position – Proprietary Funds 10
Statement of Revenue, Expenses and Changes in Fund Net
Position - Proprietary Funds 11
Statement of Cash Flow – Proprietary Funds 12 – 13
Statement of Fiduciary Net Position – Private Purpose Trust Fund 14 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Fund 15 Notes to Basic Financial Statements 16 – 39
29 C O N T E N T S (Continued)
Page
Required Supplementary Information
Budgetary Comparison Schedule – General Fund 40
Budgetary Comparison Schedule – Housing Assistance Fund 41 Budgetary Comparison Schedule – Measure C Fund 42
Schedule of the City’s Proportionate Share of Net Pension Liability 43 Schedule of Contributions 44
Supplemental Only Information
Combining Balance Sheet – Nonmajor
Governmental Funds 45 – 46
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance – Nonmajor
Governmental Funds 47 – 48
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND

ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 49 – 50
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 51 – 53
Schedule of Expenditures of Federal Awards 54
Notes to Schedule of Expenditures of Federal Awards 55
Schedule of Findings and Questioned Costs 56
Summary Schedule of Prior Audit Findings 57
30 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
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of San Joaquin, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Joaquin, California, (the City) as of and for the year ended June 30, 2022, 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, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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. 31 2
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

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 opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information on pages 40 – 42, the Schedule of the City’s Proportionate Share of Net Pension Liability and the Schedule of Contributions on pages 43 – 44, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical 32 3
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 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 information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 27, 2024, on our consideration of the City of San Joaquin’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 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 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 City of San Joaquin’s internal control over financial reporting and compliance.

August 27, 2024
33 See accompanying notes. 4

CITY OF SAN JOAQUIN

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 5,431,610 $ 575,347 $ 6,006,957
Accounts receivable 139,863 - 139,863
Interest receivable 531 117 648
Due from other governments 1,783,318 400,407 2,183,725
Internal balances (40,000) 40,000 -
Notes receivable 2,279,507 2,279,507 -
Capital assets (net of allowance
for depreciation) 14,538,587 2,275,768 16,814,355
Total assets 15,694,321 11,730,734 27,425,055
DEFERRED OUTFLOWS OF RESOURCES 127,470 127,879 255,349

LIABILITIES
Accounts payable and accrued expenses 103,525 317,667 421,192 Accrued interest 7,817 - 7,817
Deposits 111,253 - 111,253
Long-term liabilities
Due within one year 135,000 4,600 139,600
Due in more than one year 267,700 - 267,700
Net pension liability 361,526 360,371 721,897
Compensated absences 26,327 23,523 49,850
Total liabilities 1,087,918 631,391 1,719,309
DEFERRED INFLOWS OF RESOURCES 336,153 337,229 673,382

NET POSITION
Net investment in capital assets 2,140,768 14,266,287 16,407,055 Restricted for capital projects - 175,019 175,019
Restricted for specific projects and programs 5,620,212 - 5,620,212 Unrestricted (43,586) 3,129,013 3,085,427
Total net position $ 14,397,720 10,889,993 $ 25,287,713 $ Primary Government
34 See accompanying notes. 5
CITY OF SAN JOAQUIN STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Expense Services Contributions Contributions Activities Activities Total Primary Government
Governmental activities
General government $ - 547,912 $ - $ - $ (547,912) $ - $ (547,912) $ Public safety 227,596 1,384 2,163,582 - 1,937,370 - 1,937,370Public works 782,805 - 1,218,788 513,444 949,427 - 949,427Parks and recreation 287,609 - - - (287,609) - (287,609)Community development 273,010 53,600 36,858 - (182,552) - (182,552) Debt Service
Interest and other charges - 12,757 - - (12,757) - (12,757) Total governmental activities 54,984 2,131,689 3,419,228 513,444 1,855,967 - 1,855,967 Business-type activities
Water 821,254 565,673 - 2,668,375 - 2,412,794 2,412,794Sewer 906,363 488,978 - - - (417,385) (417,385)Disposal 239,019 256,224 - - - (17,205) (17,205) Total business-type activities 1,293,670 1,983,841 - 2,668,375 - 1,978,204 1,978,204 Total primary government $ 1,348,654 4,115,530 $ 3,419,228 $ 3,181,819 $ 1,855,967 1,978,204 3,834,171General Revenue Property taxes, levied for general purposes - 434,671 434,671 Business licenses - 17,136 17,136
Sales taxes - 259,660 259,660
Franchise and other taxes - 41,316 41,316
Interest and rent 6,977 57,455 64,432
Other - 60,776 60,776
Transfers 967 (967) -
Total general revenue 7,944 870,047 877,991
Change in Net Position 1,986,148 2,726,014 4,712,162
Net Position
Beginning of year 8,163,979 20,575,551 12,411,572
End of year $ 14,397,720 10,889,993 $ 25,287,713 $
Functions/Programs
Net Revenue/(Expense) and
Program Revenue Primary Government
Changes in Net Position
35 See accompanying notes. 6
CITY OF SAN JOAQUIN BALANCE SHEET – GOVERNMENTAL FUNDS JUNE 30, 2022 Capital Project Fund Other Total
Public Safety Housing Governmental Governmental
General Grant Assistance Streets Funds Funds
ASSETS
Cash and investments $ 350,108 $ 1,974,454 $ 657,939 $ 2,449,109 - $ $ 5,431,610 Interest receivable 55 188 76 - 212 531
Due from other governments 886,932 - 1,988 292,571 601,827 1,783,318 Due from other funds 314,491 - - - - 314,491
Notes receivable - - 2,279,507 - - 2,279,507
Total assets $ 1,551,586 1,974,642 $ 2,939,510 $ 292,571 $ 3,051,148 $ 9,809,457 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES

AND FUND BALANCE
Liabilities
Accounts payable and accrued expenses 61,850 $ 5,682 $ - $ 8,587 $ 27,406 $ 103,525 $ Due to other funds - - - 283,984 30,507 314,491
Advance from other funds 40,000 - - - - 40,000
Total liabilities 101,850 5,682 - 292,571 57,913 458,016 Deferred inflows of resources
Unavailable revenues 808,740 - 2,281,493 - 14,302 3,104,535 Total deferred inflows of resources 808,740 - 2,281,493 - 14,302 3,104,535 Fund Balance
Restricted
Low-income housing activities - - 658,017 - 51,786 709,803 Public safety programs - 1,968,960 - - 115,738 2,084,698 Circulation improvements - - - - 2,295,209 2,295,209
Capital improvement projects - - - - 418,032 418,032
Landscape maintenance - - - - 112,470 112,470
Unassigned 640,996 - - - (14,302) 626,694
Total fund balance 640,996 1,968,960 658,017 - 2,978,933 6,246,906 Total liabilities, deferred inflows of resources and fund balance 1,551,586 $ 1,974,642 $ 2,939,510 $ 292,571 $ 3,051,148 $ 9,809,457 $ 36 See accompanying notes. 7

CITY OF SAN JOAQUIN

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION

OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2022
Total governmental fund balances $ 6,246,906
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 funds 2,275,768 Net pension liability applicable to governmental activities are not due and payable in the current period and accordingly is not reported in the Statement of Activities (361,526)
Deferred outflows of resources related to net pension liability, represent an consumption of net position or fund balance that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until that time 127,879 Deferred inflows of resources related to net pension liability, 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 (337,229) Other long-term assets are not available to pay for current period expenditures and, therefore, are not reported in the fund 3,104,535
Compensated absences are not due and payable in the current period and therefore are not reported in the funds (23,523) Interest on long-term debt is reported as an expenditure of the Governmental Funds when paid because it requires the use of current financial resources. However, accrued interest must be recorded when incurred (7,817) Governmental long-term liabilities are not due and payable in the current period and therefore are not reported in the funds (135,000) Net position of governmental activities $ 10,889,993
37 See accompanying notes. 8
CITY OF SAN JOAQUIN STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 Capital Project Fund Other Total
Public Safety Housing Governmental Governmental
General Grant Assistance Streets Funds Funds
Revenue
Taxes $ 755,135 $ - $ - $ - $ 27,443 $ 782,578
Intergovernmental 7,488 2,000,000 - 451,440 1,477,976 3,936,904 Licenses, permits and impact fees 54,135 - - - - 54,135 Fines and forfeitures 849 - - - - 849Interest and rent 43,464 468 8,898 - 4,593 57,423Loan repayments 32,796 - 165,031 - - 197,827Other - 27,904 - - - 27,904 Total revenue 2,000,468 921,771 173,929 451,440 1,510,012 5,057,620 Expenditures
Current
General government 444,550 - - - - 444,550Public safety 111,211 12,469 - - 100,302 223,982 Public works 20,475 - - 451,440 251,945 723,860
Parks and recreation 149,868 - - - 37,408 187,276
Community development 172,617 - 17,744 - 51,334 241,695 Capital outlay 27,237 19,039 - - - 46,276
Debt service
Principal 100,000 - - - - 100,000
Interest and other charges - 12,757 - - - 12,757
Total expenditures 31,508 1,038,715 17,744 451,440 440,989 1,980,396 Revenue over/(under) expenditures (116,944) 1,968,960 156,185 - 1,069,023 3,077,224 Other Financing Sources/(Uses)
Transfers in/(out) - 167,886 (59,360) - (109,493) (967) - 167,886 (59,360) - (109,493) (967)
Change in Fund Balance 1,968,960 50,942 96,825 - 959,530 3,076,257 Fund Balance
Beginning of year - 590,054 561,192 - 2,019,403 3,170,649 End of year $ 1,968,960 640,996 $ 658,017 $ - $ 2,978,933 $ 6,246,906 $ 38 See accompanying notes. 9

CITY OF SAN JOAQUIN

RECONCILIATION OF STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022
Net change in fund balance - total governmental funds $ 3,076,257 Amounts reported for governmental activities in the statement of activities are different because:

Depreciation expense on capital assets is reported in the Statement of Activities, but it does not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in Governmental Funds (223,956)
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities and Changes in Net Position the cost of those assets are capitalized as an asset and depreciated over the period of service 46,276
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds (173,922)
Compensated absences costs in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in Governmental Funds (3,605) 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 (95,036)
Repayment of long-term debt is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Proceeds of long-term debt produces an opposite effect. 100,000 Change in net position of governmental activities $ 2,726,014 39 See accompanying notes. 10

CITY OF SAN JOAQUIN
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
JUNE 30, 2022
Total
Business-Type
Water Sewer Disposal Funds
ASSETS
Current assets
Cash and investments 560,570 $ 1,839 $ 12,938 $ 575,347 $ Accounts receivable 62,043 43,884 33,936 139,863
Interest receivable 67 4 46 117
Due from other governments 395,464 4,943 - 400,407
Advance to other funds - 40,000 - 40,000
Total current assets 50,670 1,058,144 46,920 1,155,734
Non-current assets
Property, plant and equipment
(net of allowance for depreciation) 9,342,123 5,196,464 - 14,538,587 Total noncurrent assets 9,342,123 5,196,464 - 14,538,587 Total assets 9,392,793 6,254,608 46,920 15,694,321
DEFERRED OUTFLOWS OF RESOURCES 58,960 64,910 3,600 127,470

LIABILITIES
Current liabilities
Accounts payable and accrued expenses 240,415 56,477 20,775 317,667 Deposits 111,253 - - 111,253
Current portion of long-term debt 4,400 - - 4,400
Total current liabilities 60,877 351,668 20,775 433,320 Non-current liabilities
Long-term debt - 267,900 - 267,900
Net pension liability 183,506 166,686 10,179 360,371
Compensated absences 12,753 12,946 628 26,327
Total noncurrent liabilities 447,339 196,452 10,807 654,598 Total liabilities 508,216 548,120 31,582 1,087,918
DEFERRED INFLOWS OF RESOURCES 155,484 171,174 9,495 336,153

NET POSITION
Net investment in capital assets 5,196,464 9,069,823 - 14,266,287 Reserved for capital projects 175,019 - - 175,019
Unrestricted/(deficit) (281,770) 228,741 9,443 (43,586) Total net position $ 8,788,053 5,600,224 $ 9,443 $ 14,397,720 $ Business-Type Activities - Enterprise Funds
40 See accompanying notes. 11

CITY OF SAN JOAQUIN
STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND NET POSITION –

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Total
Business-Type
Water Sewer Disposal Funds
Operating Revenue
Charges for services $ 488,978 565,673 $ 239,019 $ 1,293,670 $ Total operating revenue 488,978 565,673 239,019 1,293,670 Operating Expense
Contractual services and utilities 284,237 178,210 227,286 689,733 Personnel 322,011 329,939 21,549 673,499
Supplies and materials 136,398 82,334 7,389 226,121
Depreciation 303,736 78,608 - 382,344
Total operating expense 894,219 821,254 256,224 1,971,697 Operating income/(loss) (405,241) (255,581) (17,205) (678,027) Nonoperating Revenue/(Expense)
Interest income 5,130 460 1,387 6,977
Interest expense (12,144) - - (12,144)
Total nonoperating revenue/(expense) (11,684) 5,130 1,387 (5,167) Net income/(loss) before transfers (250,451) (416,925) (15,818) (683,194) Operating Transfers In/(Out) 20,407 (19,440) - 967
Income (Loss) before Contributions (396,518) (269,891) (15,818) (682,227) and Transfers
Capital Contributions 2,668,375 - 2,668,375 -
Net Income/(Loss) (396,518) 2,398,484 (15,818) 1,986,148 Net Position
Beginning of year 9,184,571 3,201,740 25,261 12,411,572 End of year $ 8,788,053 5,600,224 $ 9,443 $ 14,397,720 $ Business-Type Activities - Enterprise Funds
41 See accompanying notes. 12

CITY OF SAN JOAQUIN

STATEMENT OF CASH FLOW - PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Total
Business-Type
Water Sewer Disposal Funds
Operating Activities
Receipts from customers and users $ 567,478 $ 489,429 $ 237,850 $ 1,294,757 Payments for contractual services and utilities (253,904) (161,204) (227,930) (643,038) Payments to employees (273,010) (285,457) (19,668) (578,135) Payments to suppliers (82,334) (136,398) (7,389) (226,121) Net cash provided by (used in)
operating activities (39,566) (95,834) (17,137) (152,537) Non-capital Financial Activities
Payments received from other governments 97,350 - - 97,350 Payments received from (paid to) other funds 20,407 560 - 20,967 Net cash provided by (used in)
noncapital financing activities 20,407 97,910 - 118,317 Capital and Related Financing Activities
Capital grants 2,668,375 - - 2,668,375
Purchase of property, plant and equipment (2,629,812) (8,063) - (2,637,875) Principal paid on long-term debt - (4,600) - (4,600)
Interest paid on long-term debt (12,144) - - (12,144)
Net cash provided by (used in)
capital and related financing activities (24,807) 38,563 - 13,756 Investing Activities
Interest received 469 5,160 1,379 7,008
Net cash provided by (used in)
investing activities 469 5,160 1,379 7,008
Net Increase (Decrease) in Cash and Investments (43,497) 45,799 (15,758) (13,456) Cash and Investments
Beginning of year 45,336 514,771 28,696 588,803
End of year $ 1,839 560,570 $ 12,938 $ 575,347 $
Business-Type Activities - Enterprise Funds
42 See accompanying notes. 13

CITY OF SAN JOAQUIN

STATEMENT OF CASH FLOW - PROPRIETARY FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2022
Total
Business-Type
Water Sewer Disposal Funds
Cash Flows from Operating Activities
Operating income (loss) (255,581) $ (405,241) $ (17,205) $ (678,027) $ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 78,608 303,736 - 382,344
(Increase) Decrease in Accounts Receivable (4,407) (726) (1,169) (6,302) (Increase) Decrease in Due from other Governments - 1,177 - 1,177 (Increase) Decrease in Deferred Outflows of Resources 3,739 3,397 208 7,344 Increase (Decrease) in Compensated absences 763 664 (795) 632 Increase (Decrease) in Net Pension Liability (110,836) (100,676) (6,148) (217,660) Increase (Decrease) in Deferred Inflows of Resources 155,335 141,097 8,616 305,048 Increase (Decrease) in Deposits 6,212 - - 6,212
Increase (Decrease) in Accounts Payable
and Accrued Liabilities 17,006 30,333 (644) 46,695
Net Cash Provided (Used) by Operating Activities $ (39,566) (95,834) $ (17,137) $ (152,537) $ Business-Type Activities - Enterprise Funds
43 See accompanying notes. 14

CITY OF SAN JOAQUIN

STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2022
Assets
Cash and investments
Held in City Treasury $ -
Total assets -
Liabilities
Long-term debt
Due to City of San Joaquin in more than one year 808,740 Total liabilities 808,740
Net Position
Held in trust for other governments (808,740) $
44 See accompanying notes. 15

CITY OF SAN JOAQUIN

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND – SUCCESSOR AGENCY
JUNE 30, 2022
Additions
Property taxes $ 38,160
Total additions 38,160
Deductions
Administrative costs -
Total deductions -
Change In Net Position 38,160
Net Position
Beginning of year (846,900)
End of year $ (808,740)
45 16

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of San Joaquin (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 San Joaquin, State of California (the "City"), was incorporated February 14, 1920. The City operates under a Council-Manager form of government. The City's major operations include public safety; highways and streets; water, sewer and refuse collection; parks and recreation; building inspection; public improvements; planning and zoning, and general administrative services.

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 discretely presented 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.

Net position are 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.
46 17

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) 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.

Public Safety Grant Fund – The Public Safety Grant Fund was established to account for the monies received for public safety services.

Housing Assistance Fund – The Housing Assistance Fund was established to account for the monies received from various sources which are to be used for down payment loans for home buyers that meet certain requirements.

Streets Capital Project Fund – The Streets Capital Project Fund was established to account for the monies received for street related grants.

The City reports the following additional fund types:

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 reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales 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.
47 18

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, 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. 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 approximate fair value.

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, 2022, which have not yet been billed.
48 19

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Fresno County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is March 1 of each year.

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 the March 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

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.

Interfund 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 constructed. 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 constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
49 20

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) 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:

Years
Buildings 40
Improvements other than buildings 40
Utility plant 40
Furniture and equipment 7
Automobiles and trucks 5
Compensated Absences – It is the City's policy to permit all employees to accumulate earned but unused vacation, sick leave and compensatory time benefits. Those employees on shift work schedules may also accumulate hours for holiday time benefits.

Vested or accumulated vacation, holiday, sick leave and any compensation time on the Governmental Funds are not expected to be paid with expendable available financial resources and are reported in the Government-Wide Financial Statements.

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

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 amortized 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 – For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employee Retirement System (CalPERS) plan and additions to/deduction from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 50 21

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) Net Position/Fund Balance – The government-wide and business-type activities fund financial statements utilize a net position presentation. Net positions 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.

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. 51 22

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
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 Government Code and the San Joaquin 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.

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, 2022 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 6,006,957
Total Cash and Investments $ 6,006,957
Cash and investments as of June 30, 2022 consist of the following:

Cash on hand $ 900
Deposits with Financial Institutions 5,377,842
Local Agency Investment Fund 627,896
Held by Fiscal Agent:

Cash 319
Total Cash and Investments $ 6,006,957
52 23

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
Fair Value Measurements
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.

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.

Following is a description of the valuation methodologies used for assets measured at fair value.

LAIF is valued based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (Level 2 input).
53 24

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
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.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 5 years 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Authorized Investment Type
54 25

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
Investments Authorized by Debt Agreements
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.

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
Certificates of Deposits 1 year None None
Repurchase Agreements 30 days None None
Local Agency Investment Fund (LAIF) N/A None None
Municipal Bonds None None None
Authorized Investment Type
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, 2022 the City had the following investments.

Maturity Date
Local Agency Investment Fund $ 627,896 N/A
Total $ 627,896
Investment Type
55 26

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
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.

Minimum Rating as of Year End
Legal Not
Rating Rated
Local Agency Investment Fund $ 627,896 N/A $ 627,896
Total $ 627,896 627,896 $
Investment Type
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 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.
56 27

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 3 – Cash and Investments (Continued)
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.

Note 4 – Notes Receivables
The City is the recipient of Community Development Block Grant and Home Program Funds. The funds are provided to use for housing and business loans to qualified recipients at various below market interest rates ranging from 0 to 4%. The terms of the loans range between fifteen and thirty years. All loans are secured by deeds of trust. The amount outstanding as of June 30, 2022 is $2,279,507.

Note 5 – Interfund Receivables and Payables/Advances To and From 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, and carry an interest rate equal to the rate earned on pooled cash.

Individual fund interfund receivables and payables balances as of June 30, 2022 are as follows:

Due From Due To
General Fund $ 314,491 $ -
Streets Fund - 283,984
COVID Fund - 28,421
Rural Energy Program Grant Fund - 2,086
$ 314,491 314,491 $
57 28

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 5 – Interfund Receivables and Payables/Advances To and From (continued) In November 2018, the City Council approved an advance from the Water Fund to the General Fund of $100,000 at 2% interest to be repaid back in 5 annual payments, with a maturity date of July 1, 2023.

Advance To Advance From
General Fund 40,000 $ - $
Water Fund - 40,000
$ 40,000 40,000 $
Note 6 – Capital Assets
Capital asset activity for the year ended June 30, 2022, was as follows:

Balance Balance
July 1, 2021 Additions Retirements June 30, 2022
Governmental Activities
Capital assets, not being depreciated
Land $ - 340,670 $ - $ 340,670 $
Total capital assets, not being depreciated - 340,670 - 340,670 Capital assets, being depreciated
Buildings and improvements 2,685,284 27,237 2,712,521 - Infrastructure 1,215,263 19,039 1,234,302 -
Machinery and equipment - 1,298,003 - 1,298,003
Total capital assets, being depreciated 46,276 5,198,550 - 5,244,826 Less accumulated depreciation for:

Buildings and improvements (1,672,603) (109,553) (1,782,156) - Infrastructure (347,446) (30,401) (377,847) -
Machinery and equipment (84,002) (1,065,723) - (1,149,725) Total accumulated depreciation (223,956) (3,085,772) - (3,309,728) Total capital assets, being depreciated, net (177,680) 2,112,778 - 1,935,098 Governmental activities capital assets, net $ (177,680) 2,453,448 $ - $ 2,275,768 $ 58 29

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 6 – Capital Assets (Continued)
Balance Balance
July 1, 2021 Additions Retirements June 30, 2022
Business-Type Activities
Capital assets, not being depreciated
Land 124,854 $ - $ - $ 124,854 $
Construction in progress 2,586,579 375,688 - 2,962,267
Total capital assets, not being depreciated 2,586,579 500,542 - 3,087,121 Capital assets, being depreciated
Plant and equipment 51,296 15,369,575 (43,596) 15,377,275 Total capital assets, being depreciated 51,296 15,369,575 (43,596) 15,377,275 Less: accumulated depreciation (382,344) (3,587,061) 43,596 (3,925,809) Total capital assets, being depreciated, net (331,048) 11,782,514 - 11,451,466 Business-type activities capital assets, net $ 2,255,531 12,283,056 $ - $ 14,538,587 $ Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Functions:

General Government 7,166 $
Public Safety 2,809
Public Works 102,663
Parks and recreation 111,318
$ 223,956
Business-Type Functions:

Water 78,608 $
Sewer 303,736
$ 382,344
59 30

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 7 – Long-Term Debt
Balance Balance Current
July 1, 2021 Additions Retirements June 30, 2022 Portion Governmental Activity Long Term Debt
Direct Placement:

Public Finance Authority Bonds
92-1 and 92-2 $ - 235,000 $ (100,000) $ 135,000 $ 135,000 $ $ - 235,000 $ (100,000) $ 135,000 $ 135,000 $
Business-Type Activity Long Term Debt
Direct Financing:

Loan Payable
USDA Sewer Loan $ - 276,900 $ (4,600) $ 272,300 $ 4,800 $ $ - 276,900 $ (4,600) $ 272,300 $ 4,800 $
Compensated Absences
Government Activities $ 3,605 19,918 $ - $ 23,523 $
Business-Type Activities $ 2,675 23,652 $ - $ 26,327 $
Net Pension Liability
Government Activities $ (218,357) 579,883 $ - $ 361,526 $ Business-Type Activities $ - 578,031 $ (217,660) $ 360,371 $ Public Finance Authority – The City has assumed full responsibility for the payment of two revenue bonds issued by the San Joaquin Public Finance Authority. The bonds were issued in 1993 to fund several special assessment districts and the General, Water and Sewer capital leases. As these funds are reporting their proportionate share of the debt, the remaining portion is reported as a general City obligation. The City retired a portion of the Series 1992 revenue bonds during the fiscal year ending June 30, 2010.

During the fiscal year ending June 30, 2013 the Water and Sewer funds retired their portion of the debt by transferring $195,000 to the General Fund. The full amount of the debt is now payable by the General Fund. Interest on the remaining Series 1992 revenue bond is 8%. The current total outstanding balance is $135,000.

USDA Sewer Loan Payable - In 2011 the City entered into an agreement with the USDA to partially finance the sewer plant expansion. The loan agreement is for an amount not to exceed $315,000 and bears interest at 4.375% with semi-annual payments on October 1st and April 1st. At June 30, 2022 the loan outstanding amounts to $272,300.

60 31

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 7 – Long-Term Debt (continued)
The annual requirement to amortize the principal and interest on all long-term debt at June 30, 2022 are as follows:

Years ending June 30, Principal Interest Principal Interest 2023 $ 135,000 $ 18,800 $ 4,800 $ 11,914
2024 18,800 - 5,100 11,704
2025 18,800 - 5,300 11,480
2026 - 5,500 - 11,248
2027 - 5,700 - 11,008
2028-2031 - 32,700 - 51,048
2032-2036 - 40,500 - 43,242
2037-2041 - 50,200 - 33,576
2042-2046 - 62,200 - 21,586
2047-2050 - - 60,300 6,742
$ 56,400 135,000 $ 272,300 $ 213,548 $
Governmental Activities Business-Type Activities
Note 8 – Interfund Transfers
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 government-wide financial statements.

Transfers In Transfers Out
Major Governmental Funds:

General Fund $ 167,886 $ -
Housing Assistance - 59,360
American Rescue Plan Fund - 66,238
Major Enterprise Funds:

Water Fund - 19,440
Sewer Fund 20,407 -
Nonmajor Governmental Funds:

Safety Fund - 43,255
$ 188,293 188,293 $
61 32

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 9 – Deferred Outflows and Deferred Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items to report in this category:
 The City has $255,349 in pension related items that qualify to be reported in deferred outflows of resources. The pension related deferred outflows of resources are described in Note 10.

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 has one item to report in this category:
 The City has $673,382 in pension related items that qualify to be reported in deferred inflows of resources. The pension related deferred inflows of resources are described in Note 10.

Unavailable revenues arise only under a modified accrual basis of accounting and is reported only in the governmental funds balance sheet. The City has $2,281,493 in notes and loans receivable reported in the Housing Assistance Fund, $808,740 in receivable due from Successor Agency in the General Fund, $1,302 in the Rural Energy Program Grant, and $13,000 in the Local Early Action Planning Grant as deferred inflows of resources reported for unavailable revenues.

Note 10 – 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 seven percent of their annual covered salary.

The City makes the contributions required of City employees on their behalf and for their account.

The City is required to contribute at an actuarially determined rate; the current rate is 7.59 – 10.34 percent for non-safety employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. 62 33

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 10 – Pension Plan (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous
Classic
PEPRA
Miscellaneous
Hire Date
Prior to
January 1, 2013
After or On January
1, 2013
Benefit Formula 2.0% at 55;
maximum 2%
COLA

2.0% at 62;
maximum 2%
COLA
Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life
Retirement Age 55 62
Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00% Required Employee Contribution Rates 7.00% 6.25%
Required Employer Contribution Rates 10.340% 7.590%
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 notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, $128,759 of contributions was recognized as part of the pension expense.

Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share of
Net Pension Liability
Miscellaneous $ 721,897

63 34

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 10 – Pension Plan (Continued)
The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2021, 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, 2020 rolled forward to June 30, 2021 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 each Plan as of June 30, 2021 and 2022 was as follows:

Miscellaneous
Proportion – June 30, 2021 0.02745%
Proportion – June 30, 2022 0.03802%
Change – Increase/(Decrease) 0.01057%
For the year ended June 30, 2022, the City recognized pension expense of $399,732. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ - 149,963 $
Change in employer's proportion (5,023) 24,433
Differences between employer's contributions and
proportionate share of contributions (38,181) -
Differences between expected and actual
experience - 80,953
Changes of assumptions - -
Differences between projected and actual
investment earnings (630,178) -
Total $ (673,382) 255,349 $
$149,963 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2023 (122,147) $
2024 (127,831)
2025 (143,869)
2026 (174,149)
Thereafter -
64 35

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 10 – Pension Plan (Continued)
Actuarial Methods and Assumptions – The collective total pension liability for the June 30, 2021 measurement period was determined by an actuarial valuation as of June 30, 2020, with update procedures used to roll forward the total pension liability to June 30, 2021. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method in
accordance with the requirements of
GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' Membership
Date for all Funds
1 Post Retirement Benefit Increa Contract COLA up to 2.75% until Purchasing Power Protection
Allowance Floor on Purchasing Power
applies, 2.75% thereafter
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 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
65 36

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 10 – Pension Plan (Continued)
All other actuarial assumptions used in the June 30, 2019 valuation was based on the results of an December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015), including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website.

Change of assumptions – None.

Discount rate – The discount rate used to measure the total pension liability for PERF C was 7.15%. 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-term 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 of return on pension plan investments was determined using a building-block method in which bestestimate 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 of return by asset class can be found in CalPERS’ Comprehensive Annual Financial Report for the fiscal year ended June 30, 2021. 66 37

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 10 – Pension Plan (Continued)
The table below reflects 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.

Asset Class1
1 New Strategic
Allocation
Real Return
Years 1-10
2 Real Retur
Years 11+
3 Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets 0% 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Estate 13% 3.75% 4.93%
Infrastructure and Forestland 0% 0.00% 0.00%
Liquidity 1% 0.00% -0.92%
Total 100%
1 In the System’s CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities 2 An expected inflation of 2.0% used for this period
3 An expected inflation of 2.92% used for this period
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 1-percentage point lower (6.15%) or 1-percentage point higher (8.15%) than the current rate:
1% Decrease
(6.15%)
Current
Discount
Rate
(7.15%)
1% Increase
(8.15%)
Net Pension Liability 1,310,241 $ 721,897$ 235,524$
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, 2022, the City has no outstanding amount of contributions to the pension plan required for the year ended June 30, 2022. 67 38

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 11 – Concentrations
The Successor Agency owes the City $808,740 from cash pool overdrafts. Should the Agency be unable to repay the City debt in the future, this could create financial difficulties for the City. Management believes that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill.

Note 12 – 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 (CSJVRMA). The relationship between the City and CSJVRMA 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 through the CSJVRMA. 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 $50,000. The CSJVRMA purchases excess reinsurance from $1,000,000 to $15,000,000.

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 CSJVRMA 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 CSJVRMA.

The financial statements of CSJVRMA can be obtained at 1831 K Street, Sacramento, CA 95814.

The latest audited financial information and the most current information available for CSJVRMA for fiscal year ended June 30, 2020 is as follows:

Total assets $ 150,837,823
Total liabilities 118,663,929
Net position $ 32,173,894
Total revenues $ 66,885,024
Total expenses 55,557,907
Increase/(decrease) in net position $ 11,327,117
Note 13 – 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 federal Single Audit Act of 1984 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. 68 39

CITY OF SAN JOAQUIN

NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022
Note 14 – Subsequent Events
The City evaluated subsequent events for recognition and disclosure through August 27, 2024, the date which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2022 that required recognition or disclosure in such financial statements.

Note 15 – Deficit Fund Balance
The following is a summary of deficit fund balances as of June 30, 2023:

Nonmajor Special Revenue Funds
Rural Energy Action Program Grant (1,302) $
Local Early Action Planning Grant (13,000) $
This deficit is expected to be relieved from future revenues or transfers from other funds.

Note 16 – Excess of Expenditures over Appropriations
The excess of expenditures over appropriations are as follows:

General Fund:

Current:

General government $ 55,429
Public works $ 20,475
Community development $ 1,344
The excess of expenditures over appropriations are covered by excess revenues over appropriations and available fund balance in the corresponding funds.
69 REQUIRED SUPPLEMENTARY INFORMATION
70 40

CITY OF SAN JOAQUIN

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Taxes 628,350 $ 628,350 $ 755,135 $ 126,785 $
Licenses, permits and impact fees 171,250 171,250 54,135 (117,115) Fines and forfeitures 2,100 2,100 849 (1,251)
Interest and rents 47,000 47,000 43,464 (3,536)
Loan repayments 135,000 135,000 32,796 (102,204)
Other 33,000 33,000 27,904 (5,096)
Total revenue 1,016,700 1,016,700 921,771 (94,929)
Expenditures
Current
General government 390,121 390,121 444,550 (54,429)
Public safety 156,578 156,578 111,211 45,367
Public works - 20,475 - (20,475)
Parks and recreation 240,522 240,522 149,868 90,654
Community development 171,273 171,273 172,617 (1,344)
Capital outlay 55,000 55,000 27,237 27,763
Debt service
Principal 120,000 120,000 100,000 20,000
Interest and other charges 24,000 24,000 12,757 11,243
Total expenditures 1,157,494 1,157,494 1,038,715 118,779 Revenue over (under)expenditures (140,794) (140,794) (116,944) 23,850 Other Financing Sources/(Uses)
Transfers in/(out) 150,000 150,000 167,886 17,886
150,000 150,000 167,886 17,886
Net Change in Fund Balance $ 9,206 9,206 $ 50,942 $ 41,736 Fund Balance
Beginning of year 590,054
End of year $ 640,996
71 41

CITY OF SAN JOAQUIN

BUDGETARY COMPARISON SCHEDULE

HOUSING ASSISTANCE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Interest - $ - $ 8,898 $ 8,898 $
Loan repayments 11,000 11,000 165,031 154,031
Total revenue 11,000 11,000 173,929 162,929
Expenditures
Current
Community development 55,071 55,071 17,744 37,327
Total expenditures 55,071 55,071 17,744 37,327
Net Change in Fund Balance $ (44,071) (44,071) $ 96,825 $ 140,896 Fund Balance
Beginning of year 561,192
End of year $ 658,017
72 42

CITY OF SAN JOAQUIN

BUDGETARY COMPARISON SCHEDULE

MEASURE C FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenue
Intergovernmental 199,249 $ 199,249 $ 451,440 $ 252,191 $ Interest and rent 1,000 1,000 - (1,000)
Total revenue 200,249 200,249 451,440 251,191
Expenditures
Current
Public works 135,420 135,420 451,440 (316,020)
Capital outlay 96,000 96,000 - 96,000
Total expenditures 231,420 231,420 451,440 (220,020)
Net Change in Fund Balance $ (31,171) (31,171) $ - $ 31,171 Fund Balance
Beginning of year -
End of year $ -
73 43
CITY OF SAN JOAQUIN SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST 10 YEARS* YEAR ENDED JUNE 30, 2022 Proportion of the
net pension liability
Proportionate share of
the net pension liability
Covered -
employee payroll
Proportionate share of the
net pension liability as a
percentage of
covered-employee
payroll
Plan's fiduciary net
position
Plan's fiduciary net position
as a percentage of the Total
Pension Liability
2015 0.01380% 341,032 $ 594,000 $ 57.41% 2,970,654 $ 89.70% 2016 0.02251% 617,597 $ 618,152 $ 99.91% 2,730,765 $ 81.56% 2017 0.02381% 827,211 $ 530,623 $ 155.89% 2,750,531 $ 76.88% 2018 0.02469% 973,316 $ 629,110 $ 154.71% 2,976,364 $ 75.36% 2019 0.02546% 959,351 $ 589,677 $ 162.69% 3,199,251 $ 76.93% 2020 0.02646% 1,059,753 $ 500,973 $ 211.54% 3,285,227 $ 76.93% 2021 0.02745% 1,157,914 $ 638,493 $ 181.35% 3,178,650 $ 73.30% 2022 0.03802% 721,897 $ 637,492 $ 113.24% 3,734,199 $ 83.80% Miscellaneous
*Fiscal year 2014-15 was the first year of implementation, therefore only eight years are shown. Changes of Assumptions: None. 74 44
CITY OF SAN JOAQUIN SCHEDULE OF CONTRIBUTIONS LAST 10 YEARS* YEAR ENDED JUNE 30, 2022 Contractually
required
contribution
(actuarially
determined)
Contributions in relation
to the actuarially
determined contributions
Contributions
deficiency
(excess) Covered-employee payroll
Contributions as a
percentage of coveredemployee payroll
2015 58,000 $ (58,000) $ - $ 561,000 $ 10.28%
2016 65,492 $ (65,492) $ - $ 618,152 $ 10.59%2017 74,548 $ (74,548) $ - $ 530,623 $ 14.05%2018 75,592 $ (75,592) $ - $ 629,110 $ 12.02%2019 84,001 $ (84,001) $ - $ 589,677 $ 14.25%2020 86,565 $ (86,565) $ - $ 500,973 $ 17.28%2021 111,348 $ (111,348) $ - $ 638,493 $ 17.44%2022 128,759 $ (128,759) $ - $ 600,000 $ 21.46% Miscellaneous
*Fiscal year 2014-15 was the first year of implementation, therefore only eight years are shown. 75 SUPPLEMENTAL ONLY INFORMATION
76 CITY OF SAN JOAQUIN
COMBINING BALANCE SHEETNON-MAJOR GOVERNMENTAL FUNDSJUNE 30, 2022 Capital Project Funds
American Rescue Gas Local Impact
Safety Plan SB-1 Tax Transportation Measure C Fees
ASSETS
Cash and investments 50,456 $ 363,382 $ 155,115 $ $ 247,021 $ 254,708 $ 1,158,841 $ 54,646 Interest receivable 11 - 22 23 26 114 4
Due from other governments - 65,271 12,873 9,621 20,208 451,131 - Total assets $ 363,382 115,738 $ 168,010 $ 256,665 $ 705,865 $ 1,179,163 $ 54,650 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense - - - 7,537 924 6,033 - Due to other funds - - - - - - -
Total liabilities - - - 7,537 924 6,033 -
Deferred Inflows of Resources
Unavailable revenues - - - - - - -
Total deferred inflows of resources - - - - - - -
Fund Balance
Restricted
Low-income housing activities - - - - - - -
Public safety programs 115,738 - - - - - -
Circulation improvements - - 168,010 249,128 704,941 1,173,130 - Capital improvement projects - 363,382 - - - - 54,650
Landscape maintenance - - - - - - -
Unassigned - - - - - - -
Total fund balance 115,738 363,382 168,010 249,128 704,941 1,173,130 54,650 Total liabilities, deferred inflows of resources and fund balance 115,738 $ 363,382 $ 168,010 $ 256,665 $ 705,865 $ 1,179,163 $ 54,650 $ Special Revenue Funds
45 77

CITY OF SAN JOAQUIN
COMBINING BALANCE SHEETNON-MAJOR GOVERNMENTAL FUNDS (continued)JUNE 30, 2022 Total
Rural Energy Local Early Non-major
for America Action Planning Air Pollution Low Moderate Landscape Governmental COVID Program Grant Grant Grant Housing Asset Maintenance Funds ASSETS
Cash and investments - $ - $ - $ - $ 51,780 $ 113,160 $ 2,449,109 $ Interest receivable - - - 6 6 212
Due from other governments 1,302 28,421 13,000 - - - 601,827 Total assets $ 1,302 28,421 $ 13,000 $ - $ 51,786 $ 113,166 $ 3,051,148 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCE
Liabilities
Accounts payable and accrued expense - 1,302 10,914 - - 696 27,406 Due to other funds - 28,421 2,086 - - - 30,507
Total liabilities 1,302 28,421 13,000 - - 696 57,913
Deferred Inflows of Resources
Unavailable revenues 1,302 - 13,000 - - - 14,302
Total deferred inflows of resources 1,302 - 13,000 - - - 14,302 Fund Balance
Restricted
Low-income housing activities - - - - 51,786 - 51,786
Public safety programs - - - - - - 115,738
Circulation improvements - - - - - - 2,295,209
Capital improvement projects - - - - - - 418,032
Landscape maintenance - - - - - 112,470 112,470
Unassigned (1,302) - (13,000) - - - (14,302)
Total fund balance - (1,302) (13,000) - 51,786 112,470 2,978,933 Total liabilities, deferred inflows of resources and fund balance 28,421 $ 1,302 $ 13,000 $ - $ 51,786 $ 113,166 $ 3,051,148 $ Special Revenue Funds
46 78

CITY OF SAN JOAQUIN
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCENON-MAJOR GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2022 Capital Project Funds
American Rescue Gas Local Impact
Safety Plan SB-1 Tax Transportation Measure C Fees
Revenue
Taxes - $ - $ - $ - $ - $ - $
Intergovernmental 135,271 480,954 81,157 100,132 219,835 420,708 - Interest - 194 59 715 2,468 815 131
Total revenue 480,954 135,465 81,216 100,847 421,523 222,303 131 Expenditures
Current
Public safety 100,302 - - - - - -
Public works - - 7,178 102,260 82,614 33,821 -
Park and recreation - - - - - - -
Community development - 51,334 - - - - -
Total expenditures 51,334 100,302 7,178 102,260 33,821 82,614 -Revenue over (under) expenditures 35,163 429,620 74,038 (1,413) 387,702 139,689 131 Other financing sources/(uses)
Operating transfers in/(out) - net (43,255) (66,238) - - - - - (43,255) (66,238) - - - - -
Change in Fund Balance 363,382 (8,092) 74,038 (1,413) 387,702 139,689 131 Fund Balance
Beginning of year - 123,830 93,972 250,541 1,033,441 317,239 54,519 End of year 115,738 $ 363,382 $ 168,010 $ 249,128 $ 704,941 $ 1,173,130 $ 54,650 $ Special Revenue Funds
47 79

CITY OF SAN JOAQUIN
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCENON-MAJOR GOVERNMENTAL FUNDS (continued)YEAR ENDED JUNE 30, 2022 Total
Rural Energy Local Early Non-major
for America Action Planning Air Pollution Low Moderate Landscape Governmental COVID Program Grant Grant Grant Housing Asset Maintenance Funds Revenue
Taxes $ - $ - $ - $ - $ - $ 27,443 $ 27,443
Intergovernmental 28,421 - - - 11,498 - 1,477,976Interest - - - - 77 134 4,593 Total revenue - 28,421 - - 11,575 27,577 1,510,012
Expenditures
Current
Public safety - - - - - - 100,302
Public works - 1,302 13,000 - - 11,770 251,945
Park and recreation 37,408 - - - - - 37,408
Community development - - - - - - 51,334
Total expenditures 1,302 37,408 13,000 - - 11,770 440,989 Revenue over (under) expenditures (8,987) (1,302) (13,000) - 11,575 15,807 1,069,023 Other financing sources/(uses)
Operating transfers in/(out) - net - - - - - - (109,493) - - - - - - (109,493)
Change in Fund Balance (1,302) (8,987) (13,000) - 11,575 15,807 959,530 Fund Balance
Beginning of year - 8,987 - - 40,211 96,663 2,019,403
End of year $ (1,302) - $ (13,000) $ - $ 51,786 $ 112,470 $ 2,978,933 $ Special Revenue Funds
80 48

OVERALL COMPLIANCE, INTERNAL CONTROLS

AND FEDERAL AWARDS SECTION
81 901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 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 San Joaquin, 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 the City of San Joaquin, California, (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated August 27, 2024.

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 the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

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 may exist that have not been identified.
82 50
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 determination of 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.

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.

August 27, 2024
83 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
John P. Burt
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 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 San Joaquin, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of San Joaquin (the “City”), California’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. 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, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; 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, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
84 52
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 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.

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, 85 53
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.

August 27, 2024
86 54

CITY OF SAN JOAQUIN

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
Assistance Agency or
Federal Grantor/Pass-through Listing Pass-through Federal Grantor/Program Title Number Number Expenditures
U.S. Department of Housing and Urban Development:

Passed through State Department of Housing and
Community Development
Community Development Block Grant/Brownfields Economic Development Initiative 14.246 18-CDBG-12889 155,626 $ Community Development Block Grant/Brownfields Economic Development Initiative 14.246 19-CDBG-12917 4,400 Community Development Block Grant/State's Program 14.228 20-CDBG-12059 2,398,353 Total U.S. Department of Housing and Urban Development 2,558,379 U.S. Department of Transportation
Pass-through State of California Department of Transportation Highway Planning and Construction 20.205 ATPL 5245(017) 3,345 Highway Planning and Construction 20.205 CML-5245(018) 419,269 Highway Planning and Construction 20.205 CML-5245(019) 32,170 Total U.S. Department of Transportation 454,784
U.S Department of Protection Agency
Passed through State Water Resources Control Board
Drinking Water State Revolving Fund - Water Meter Installation 66.468 DWSRF 1010034 23,618 Total U.S Department of Protection Agency 23,618
U.S. Department of the Treasury
Passed thru the Department of Finance
Coronavirus Relief Fund 21.019 N/A 67,552
Coronavirus Relief Fund 21.019 N/A 14,919
Community Development Block Grant/State's Program 21.019 N/A 10,083 Coronavirus Relief Fund 21.019 N/A 1,988
Total U.S. Department of Treasury 94,542
Total Federal Expenditures $ 3,131,323
87 55

CITY OF SAN JOAQUIN

NOTES SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
Note 1 – Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of San Joaquin, 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 SEFA 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 – 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 4 – Indirect Cost Rate
The City did not elect to use the 10% de minimus cost rate as covered in 2 CFR §200.414. 88 56

CITY OF SAN JOAQUIN

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
A. Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified

Internal control over financial reporting:
 Material weaknesses identified? Yes No
 Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported  Non-compliance material to financial
statements noted? Yes No
Federal Awards
Internal control over major programs:
 Material weaknesses identified? Yes No
 Significant deficiencies identified that are
not considered to be material weaknesses? Yes None reported Type of auditor’s report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance with 2 CFR
200.516(a)? Yes No
Identification of Major Programs
Assistance Listing Number Name of Federal Program or Cluster

14.228 Community Development Block Grant/State’s
Program and Non-Entitlement Grants in Hawaii
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes No
B. Findings – Financial Statements Audit
None noted.

C. Findings and Questioned Costs – Major Federal Award Programs Audit None noted.
89 57

CITY OF SAN JOAQUIN

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2022
Summary Schedule of Prior Audit Findings
There were no prior year audit findings.
90 CITY OF SAN JOAQUIN

MANAGEMENT REPORT
FOR THE YEAR ENDED JUNE 30, 2022
91 TABLE OF

CONTENTS
Page
Required Communications 1 - 3
92 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
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 To the Honorable Mayor and City Council
City of San Joaquin, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Joaquin for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, 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 July 3, 2023 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 was not changed during 2022. 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 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.
93 2
 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.

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

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in 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 in the management representation letter dated August 27, 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 San Joaquin’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.

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 San Joaquin’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
94 3
Other Matters
We applied certain limited procedures to the Budgetary Comparison Schedules, 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 San Joaquin and is not intended to be, and should not be, used by anyone other than these specified parties.

August 27, 2024
95 STAFF REPORT TO COUNCIL
August 26, 2024
TO: Mayor and Council
FROM: Elizabeth Cabrera, City Manager
SUBJECT: Resolution 2024-30 Authorizing Youth Recreational Funding Program Recommendation
Approve Resolution 2024-30 Authorizing the use of Funds per State Budget Act of 2021 for Youth Recreational Funding Program Mini Grants
Executive Summary
This item is brought to Mayor and City Council for consideration of launching a mini grant program in the San Joaquin Community for total funds available of $50,000. Organizations can apply for awards of up to $10,000 for eligible youth groups demonstrating the ability to meet all guidelines and requirements. Application period is September 4, 2024 through September 20, 2024. Applications must be received by City Hall by 4pm on the day of the deadline to be considered for funding. A signed copy of the Youth Recreational Funding Program Guidelines must accompany the application for application to be deemed complete. In addition to be eligible for funding organizations must demonstrate the following:

A. Organization or youth group must demonstrate a significant San Joaquin client base
B. Use at least 95% of City funds granted for direct services as opposed to administrative costs
C. If selected for funding the organization must enter into an agreement with the City of San Joaquin prior to the use and allocation of funds If the number of applications exceed the $50,000 pot allocation, applications will be reviewed and prioritized for funding based on Youth Recreational Funding Guidelines.

Background
A State Budget Allocation in the amount of $2Million was approved and issued to City of San Joaquin in fiscal year 2021-22 for the purpose of improving public safety. The Board of State and Community Corrections (BSCC) is processed the funding allocation per the Budget Act of 2021.

This disbursement was made in accordance with Senate Bill 170, Chapter 240, Statutes of 2021, Control Section 19.56 (e), (227), which provided that the City of San Joaquin will received 96 REPORT TO CITY COUNCIL

$2,000,000 for Public Safety Regional Support. The BSCC will follow up prior to the end of the funding period, June 30th, 2026 for confirmation that the funding was used as intended in the budget.

A meeting was held between the City and Fresno County Sheriff Department to discuss viable mitigative efforts to assist with decrease in crime and support of Sheriff’s office with investigations. Per Resolution 2021-43 a budget line item for Youth Sports Program was approved in the amount of $200,000.
97 RESOLUTION NO. 2024-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JOAQUIN AUTHORIZING THE USE OF FUNDS PER STATE BUDGET ACT OF 2021 FOR

YOUTH RECREATIONAL FUNDING PROGRAM

THE CITY COUNCIL OF THE CITY OF SAN JOAQUIN DOES RESOLVE AS FOLLOWS:

WHEREAS, the Board of State and Community Corrections (BSCC) is provided funding to the City of San Joaquin per the Budget Act of 2021; and WHEREAS, the City of San Joaquin received $2,000,000 for Public Safety Regional Support; and
WHEREAS, this disbursement was made in accordance with Senate Bill 170, Chapter 240, Statutes of 2021, Control Section 19.56 (e), (227); and WHEREAS, the funding period is July 1, 2021 through June 30, 2026; and WHEREAS, the allocations is made to the City of San Joaquin after a recent increase in Gang Activity has negatively impacted the youth and community; and WHEREAS, the City wishes to offer a Youth Recreational Funding Program Mini Grant to (i) help strengthen youth groups in the community (ii) increase the number of opportunities available for youth to engage in an enrichment activity, and (iii) promote opportunities for youth to become engaged and experience improvements in mental health, teamwork, social responsibility and enhanced confidence.

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

1. The foregoing recitals are true and correct and incorporated by reference.

2. The City Council authorizes the use of funds per Budget Act of 2021 for the qualifying expenses for Youth Recreational Funding Program Mini Grants in the amount of $50,000 by June 20, 2026 as outlined below:
a. Application period September 4, 2024 through September 20, 2024, b. Organization or youth group must demonstrate a significant San Joaquin client base,
c. Use at least 95% of City funds granted for direct services as opposed to administrative costs, and
d. If selected for funding the organization must enter into an agreement with the City of San Joaquin prior to the use and allocation of funds 98 The foregoing resolution was adopted at a regular meeting of the City Council of the City of San Joaquin the 3rd day of September 2024 and passed at said meeting the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Julia Hernandez, Mayor
ATTEST:
_______________________________
Matthew Flood, City Clerk
99 COMMUNITY YOUTH ORGANIZATION FUNDING APPLICATION
Applicant: Date:

Type of Applicant: (circle one) P
u Private Non-Profit Other:

Contact Person: Title:

Address: City, Zip Code:

Phone: I Fax: I Email:

Name of youth group or project for which you are requesting funding:

Provide a description of the youth organization and its general functions:

Number of clients the program expects to serve this fiscal year:

San Joaquin Residents__________ Non Residents___________ What is your program budget for the current fiscal year? $ Amount of funding being requested: $
Provide a detailed description of the proposed project explaining precisely what is to be accomplished with the requested funds.

Identify and describe the target population.
100

COMMUNITY YOUTH ORGANIZATION FUNDING APPLICATION

CITY OF SAN JOAQUIN

YOUTH RECREATIONAL FUNDING PROGRAM GUIDELINES
SEPTEMBER 2024

1. BACKGROUND AND PURPOSE
The purpose of these Guidelines is to formalize the process for the granting of an award of monetary support to local youth organizations whose programs provide youth recreational activities for San Joaquin youth residents. Funding provided under these Guidelines is not intended for use as the sole or primary support of any organization. Funding awards will be up to $10,000 per organization.

2. ELIGIBILITY
Applicants must meet the following criteria:

2.1. Be based in San Joaquin or provide services in San Joaquin to a significant San Joaquin client base.

2.2 Implement programs that emphasize youth recreational programs for San Joaquin residents.

2.3. Provide a service that is not a duplication of an existing public-sector program, OR if the service is duplicated, the applicant must show why it is not an unnecessary duplication of service.

2.4. Maintain accounting records which are in accordance with generally accepted accounting practices.

2.5. Have bylaws or guidelines that define the organization's purposes and functions, its organization, and the duties, authority and responsibilities of its governing body and officers.

2.6. Provide for adequate administration of the program to insure delivery of the services. One individual should be designated as the organization's primary contact person with the City.

2.7. Use at least 95% of City funds granted for direct services as opposed to administrative costs.

3. PROCEDURE
Applicants shall file an application for Community Youth Organization Funding with the City Manager no later than September 20, 2024 by 4pm. Complete applications can be dropped off at City Hall or emailed to [email protected]. Application forms may be obtained from City Hall. The City Manager is responsible for reviewing all proposals and submitting recommendations for funding to the City Council. In its evaluation, the City Manager shall "consider and evaluate" the following criteria:
101

COMMUNITY YOUTH ORGANIZATION FUNDING APPLICATION

3.1. The status of the organization.

3.2. The number of San Joaquin residents and the number of non-San Joaquin residents that will benefit directly from the proposed City monies.

3.3. Adherence to these Guidelines, City ordinances, and other stated policies of the City.

3.4. Whether or not a public need will go unmet without the contribution.

3.5. The degree to which the goodwill of the City will be promoted.

3.6. The degree to which the cause has been recognized as a contribution to the community.

3.7. Whether or not the contribution could expose the City to civil liability.

3.8. The amount of the request.

3.9. The degree to which the members of the organization have engaged in fundraising activities.

3.10. The percentage of the organization's operating budget that consists of City funds.

Having an operating budget that relies too heavily on City funding will be evaluated lower.

4. FUNDING

4.1. Funds will not be allocated to:
• Political action committees, political candidates, or political campaigns. • Any organization conducting a religious activity.
• For the rental of City facilities.

4.2. Funding requested from membership-based organizations will not be considered if the funds requested are to be used to directly benefit its members and not the community at large.

4.3. Funding of a program will not constitute a precedent for contributions in subsequent years.

4.4. Final funding decisions will be at the discretion of the City Council and will vary depending on budgetary considerations. Grants are funded solely from the donations received for the benefit of youth and recreation programs.

5. POST FUNDING APPLICATION REQUIREMENTS.

If funding is approved by the City Council, the organization shall execute an agreement which includes language requiring compliance with the following:

5.1. Carry adequate liability insurance naming the City as additional insured as may be required by the City.
102

COMMUNITY YOUTH ORGANIZATION FUNDING APPLICATION

5.2. Not unlawfully discriminate in employment or in clients served because of race, religion, national origin, sex, sexual orientation, disability, or any other class protected by the United States or California Constitution, or Federal or State statute.

5.3. Be accountable for revenue and expenditures through standard bookkeeping procedures. An annual review at the applicant's expense may be required, with the results available to the City of San Joaquin upon request.

5.4. Provide access to periodic reviews by City staff and City Council for purposes of monitoring the program.

5.5. Funded applicants must return to the City any unexpended funds at the end of the one-year funding period for annual programs and at the end of the seasonal program for seasonal programs, or whenever the City determines that the applicant has not performed in accordance with the approved program proposal.

5.6. City monies shall be used only for the purpose and program duly authorized and in accordance with the approved budget. Any deviation from the approved program may be made only with the City's prior written approval. If not, funds must be returned immediately to the City.

5.7 Standard City contract language.
_____________________________________ __________________ Organization Representative Signature Date
103

STAFF REPORT TO COUNCIL
September 3, 2024
TO: Mayor and Council
FROM: Elizabeth Cabrera, City Manager
SUBJECT: Authorizing the use of American Rescue Plan Act Funds for Fiscal Year 2023-24 and 2024-25 for qualifying activities, and authorizing an emergency repair of the Manning Lift Station.

Recommendation
Approve Resolution 2024-31 Authorizing the use of American Rescue Plan Act Funds for Fiscal Year 2023-24 and 2024-25 for qualifying activities, and Resolution 2024-32 authorizing an emergency repair of the Manning Lift Station.

Executive Summary
City staff is bringing forth two resolutions that are related.

Due to naturally occurring circumstances related to wear-and-tear, the Manning Lift Station is experiencing issues relating to discharge output. A large leak has developed on the outlet side of the lift station which is causing poor/low flow and overworking of the pumps in question. The leak is significant enough that it has decrease operation by almost half of what’s expected and it is allowing flow back into our system causing our pumps to work twice as much and twice as long as they usually would.

In order to alleviate the overworking of pumps, we have installed an emergency by-pass pump to achieve the desired flow rate of approximately 1000gpm and to allow for the contractors to make the repair without having to shut off the entire system.

Not performing this repair as soon as possible may not only result in significant damage to our community, but will also result in increased costs to maintain the bypass pumps. So Resolution 2024-32 is getting Council’s specific authorization to use the emergency section in SJMC 35.06 to perform the repairs as soon as possible.

Resolution 2024-31 is to approve expenditures from the CLFRF (also known as the SLFRF or ARPA Funds) to perform the repairs for the Manning Lift Station, as well as any other expenses that were budgeted to use ARPA funds in the annual budgets. The City received $961,909 in these funds and has allocated or expended the majority of it. ARPA funds for the years 2023-2025 will be used to offset costs related to many other expenses already listed in the budget (even possibly including year-end auditing costs, when applicable) that may have been expensed to other accounts, but are qualifying expenses for ARPA purposes. This will alleviate the cost to our main accounts (General, Water, and Sewer), as well as help the City allocate and spend the money by the quickly approaching deadlines.
104
RESOLUTION NO. 2024-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JOAQUIN

AUTHORIZING THE USE OF AMERICAN RESCUE PLAN ACT FUNDS FOR FISCAL YEARS 2023-2024 AND 2024-2025 FOR QUALIFYING ACTIVITIES

THE CITY COUNCIL OF THE CITY OF SAN JOAQUIN DOES
RESOLVE AS FOLLOWS:

WHEREAS, The American Rescue Plan Act (ARPA) provides $350 billion for eligible state, local, territorial, and Tribal governments to mitigate the fiscal effects of the COVID-19 emergency; and
WHEREAS, ARPA established the Coronavirus State Fiscal Recovery Fund (CLFRF) for state allocations; and
WHEREAS, CLFRF provides flexibility for each government to meet local needs detailed in federal guidance; and
WHEREAS, States, counties, and cities will receive their allocations directly from the U.S. Treasury and the State is required to disburse allocations to the 291 small cities or non-entitlement units of local government (NEU); and
WHEREAS, The allocations are based on each city or town’s share of the eligible population (using date provided by Treasury base on 2019 U.S. Census data); and WHEREAS, The City of San Joaquin allocation is $961,909 and must be obligated by December 31, 2024 and expended by December 31, 2026; and WHEREAS, Current eligible usages are (1) Respond to the COVID-19 public health emergency and support various activities to decrease the spread of the virus (2) Address negative economic impacts caused by the public health emergency (3) Replace lost public sector revenue due to the pandemic (4) Provide premium pay to eligible workers or grants to eligible employers of essential workers (5) Invest in water, sewer, and broadband infrastructure (6) Emergency Relief from natural disasters and their economic impacts (7) Surface transportation projects (8) Title I Projects [those generally associated with eligible activities under CDBG]; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Joaquin as follows:
105

1. The City Council authorizes the use of American Rescue Plan Act funds for Fiscal Year 2023-24 for eligible usages and expenses occurring in that year and Fiscal Year 2024-2025 in the amount not to exceed of $200,000; and

2. The City Council authorizes the use of American Rescue Plan Act funds for Fiscal Year 2024-25 for eligible usages in the amount not to exceed of $300,000, including for the repair of the Manning Lift Station and administrative costs, when applicable.

3. This resolution is effective upon adoption.

The foregoing resolution was adopted at a regular meeting of the City Council of the City of San Joaquin the 3rd day of September, 2024 and passed at said meeting the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Julia Hernandez, Mayor
ATTEST:
_______________________________
Matt Flood, City Clerk
106
RESOLUTION NO. 2024-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JOAQUIN

AUTHORIZING AN EMERGENCY PURCHASE FOR THE REPAIR OF THE

MANNING LIFT STATION
WHEREAS, the City Council of the City of San Joaquin has the authority to perform the expenditures necessary to ensure the health and safety of the community; and WHEREAS, expenses for both planned and unexpected repairs are a normal and recurring element of the management of municipal infrastructure; and WHEREAS, the Manning Lift Station recently experienced mechanical issues due to wear-andtear that can result in a catastrophic failure in the near future if no intervention is made, which would result in a biohazard to members of the community; and WHEREAS, staff reached out to a business that had experience in these specific types of facilities, who provided a bypass to ensure temporary function of the Lift Station, and an estimate for comprehensive repairs; and
WHEREAS, the San Joaquin Municipal Code Section 35.06(H)(1) allows the Council to declare by reason of public necessity a dispensing of the competitive bidding requirements, pursuant to the declaration of a case of emergency, a fourth-fifths affirmative vote on the item, and the findings required in California Public Contracts Code Section 22050.

NOW THEREFORE, the City Council of the City of San Joaquin resolves as follows:

1. The foregoing recitals are true and correct and incorporated by reference.

2. The City Council declares that the public interest and necessity demands the immediate expenditure of funds for the repair of the Manning Lift Station to safeguard life, health, and property.

3. Pursuant to California Public Contracts Code Section 22050, the City Council finds that the emergency referenced herein will not permit a delay resulting from a competitive solicitation for bids and the action described herein is necessary to respond to the emergency.

4. The City Council authorizes the expenditure of up to $60,000 from ARPA funding for the repair of the Manning Lift Station.

5. The City Council authorizes the City Manager or designee to execute all documents necessary to ensure the emergency repairs can be carried out. 107
The foregoing resolution was adopted at a regular meeting of the City Council of the City of San Joaquin by at least a four-fifths vote the 3rd day of September, 2024 and passed at said meeting with the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Julia Hernandez, Mayor
ATTEST:
_______________________________
Matt Flood, City Clerk
108