Attachment A - ACFR FY21 — City Council and Concurrent Authorities, March 22, 2022

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CITY OF STOCKTON
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ATTACHMENT A

ATTACHMENT A
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
June 30, 2021

CITY OF STOCKTON, CALIFORNIA
Prepared and Issued by Administrative
Services Department

JAY KAPOOR
Chief Financial Officer

ATTACHMENT A

INTRODUCTORY SECTION

ATTACHMENT A
City of Stockton
Comprehensive Annual Financial Report
For the year ended June 30, 2021

Table of Contents

i
Page

INTRODUCTORY SECTION (UNAUDITED)

Table of Contents ................................................................................................................................................................ i Letter of Transmittal ........................................................................................................................................................... v List of Principal Officials .................................................................................................................................................. xi Organization Chart ........................................................................................................................................................... xii

FINANCIAL SECTION

Independent Auditors’ Report on Financial Statements .............................................................................................. 1

Management’s Discussion and Analysis (Required Supplementary Information – Unaudited) .............................. 4

Basic Financial Statements:

Government-Wide Financial Statements:

Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ...................................................................................................................................................... 21 Reconciliation of the Balance Sheet of Governmental Funds to the Governm ent-Wide Statement of Net Position ................................................................................................ 22 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 23 Reconciliation of the Statement of Revenues, Expenditures, and Change s in Fund Balances of Governmental Funds to the Government -Wide Statement of Activities ................................ 24 Proprietary Fund Financial Statements:

Statement of Net Position .................................................................................................................................... 27 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 31 Statement of Cash Flows ..................................................................................................................................... 33

Fiduciary Fund Financial Statements:

ATTACHMENT A
City of Stockton
Comprehensive Annual Financial Report
For the year ended June 30, 2021

Table of Contents (Continued)

ii
Page

Notes to the Basic Financial Statements ....................................................................................................................... 44

Required Supplementary Information (Unaudited):

Budgetary Information .........................................................................................................................................................

Budget Process ......................................................................................................................................................... 108 Budget Basis of Accounting .................................................................................................................................... 109 Budget Comparison Schedule – General Fund ........................................................................................................ 111 Budget Comparison Schedule – Housing Grants Special Revenue Fund ................................................................ 113 Budget Comparison Schedule – Special Grants Special Revenue Fund ................................................................. 114

Defined Benefit Pension Plan Funded Status .......................................................................................................................

Schedule of Changes in the City’s Net Pension Liability and Relations Ratios ...................................................... 115 Schedule of Changes in the City’s Pension Contributions ...................................................................................... 118

Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ........................................................................................................................................ 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances................................................ 127

Internal Service Funds:

Combining Statement of Net Position ..................................................................................................................... 131 Combining Statement of Revenues, Expenses, and Changes in Net Position ......................................................... 133 Combining Statement of Cash Fl ows ...................................................................................................................... 135

Custodial- Fiduciary Funds:

Statement of Changes in Assets and Liabilities ....................................................................................................... 141

Schedule of Sources and Uses – Measures A and B ................................................................................................ 143

ATTACHMENT A
City of Stockton
Comprehensive Annual Financial Report
For the year ended June 30, 2021

Table of Contents (Continued)

iii
Page

STATISTICAL SECTION (UNAUDITED)

Financial Trend Information Last Ten Fiscal Years:

Net Position by Classification .................................................................................................................................. 145 Changes in Net Position ........................................................................................................................................... 147 Fund Ba lance, Governmental Funds ........................................................................................................................ 151 Changes in Fund Balance of Governmental Funds .................................................................................................. 153 Tax Revenues by Source, Governmental Funds ...................................................................................................... 157

Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property.......................................................................... 159 Direct and Overlapping Property Tax Rates ............................................................................................................ 161 Principal Property T ax Payers ................................................................................................................................. 162 Secured Property Tax Levies and Collections ......................................................................................................... 163 Water Sold by Customer Type ................................................................................................................................. 164 Water and Wastewater Utility Rates ........................................................................................................................ 165

Debt Capacity Information:

Ratios of Outstanding Debt by Type ....................................................................................................................... 167 Ratios of General Bonded Debt Outstanding ........................................................................................................... 169 Direct and Overlapping Governmental Activities Debt ........................................................................................... 170 Legal Debt Margin Information ............................................................................................................................... 171 Pledged-Revenue Coverage ..................................................................................................................................... 173

Demographic and Economic Information:

Demographic and Economic Statistics .................................................................................................................... 176 Principal Employers ................................................................................................................................................. 177

Operating Information:

Full-Time Equivalent City Government Employees By Function/Program/Department ........................................ 178 Operating Indicators by Function/Program/Department .......................................................................................... 179 Capital Asset Statistics by Function/Program/Department ...................................................................................... 182

ATTACHMENT A

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ATTACHMENT A
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March 1, 2022

To the Honorable Mayor,
City Council, Audit Committee and the
Citizens of the City of Stockton, California

The Stockton City Charter, federal grant regulations, and agreements with investors require the City of Stockton, California ("City") to publish a complete set of financial statements presented in conformance with Generally Accepted Accounting Principles (" GAAP") and audi ted by a firm of licensed, certified public accountants. Under those requirements, we respectfully submit the Annual Comprehensive Financial Report (" ACFR") of the City of Stockton for the fiscal year ("FY") ended June 30, 2021.

Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, t he data, as presented, is accurate in all material aspects; and is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds. This report contains all disclosures necessary to enable the reader to fully understand the City's financial affairs.

An overview of the City's financial activities for the fiscal year is discussed in detail in the Management's Discussion and Analysis ("MD&A") section of the ACFR.

PROFILE OF THE GOVERNMENT

The City of Stockton is located in the center of California's San Joaquin Valley and is the seat of San Joaquin County.

Stockton is located about 80 miles east of the San Francisco Bay Area and 40 miles south of Sacramento, California's Capitol.

One of the oldest cities in the State of California, Stockton was founded in 1849 and incorporated in 1850. In 1888, the voters approved Stockton's first local Charter, which was ratified by t he State Legislature in 1889. The current Charter was approved by the voters in November 1922 and became effective in 1923. T his Charter changed the C ity from a commission form of government to the current City Council-City Manager form of government. Under the Council-Manager form of government, the City Council has policy-making and legislative authority. Representatives from six districts are chosen by district election, with the Mayor being chosen by citywide election, for staggered four- year terms, with a two-term limit. The City Manager is responsible for carrying out the City Council's policies and ordinances, appointing department heads, and overseeing the City’s operations. The City Council appoints the City Manager, City Attorney, City Auditor, and City Clerk.

The City Charter has been am ended many times since 1922, with the m ost recent am endments approved by voters in Novem ber 2016. Those amendments eliminated city -wide voting for Council districts , modified the Mayor 's compensation, powers, and duties, and made several changes related to budget and fiscal affairs.

The City provides a full range of municipal services, including police and fire protection, comm unity development, economic development, affordable housing, public works and street maintenance, parks, recreational services, libraries, and water, wastewater, and stormwater utilities. The City serves approximately 55% of water accounts in the City while the California Water Service Company, an investor-owned company, provides water service to 42%, and San Joaquin County provides water service to the remaining 3%.

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This report includes the Stockton Public Financing Authority's financial activity, a separate legal entity controlled by the City. The City reports the Successor Agency to the Redevelopment Agency of the City of Stockton's financial statements as a private-purpose trust fund in these financial statements.

The Council is required to adopt an annual budget following a public hearing to review the proposed annual budget. This annual budget serves as the foundation for the City' s financial planning and control. The City prepares the budget by fund, function, and department, e.g., Police. Department heads may transfer budget appropriations within a department as they see fit. Transfers between General Fund departments, however, need City Council approval. Outside the General Fund, the City Manager has the authority to transfer budget appropriations at the fund level.

THE LOCAL ECONOMY

The City encompasses nearly 65 square miles, is surrounded by the San Joaquin Valley's fertile lands and is home to the furthest inland deep-water seaport in California. The City has a well-diversified economic base that has evolved from its agricultural roots to become a regional center for commerce, including the second-largest transportation and logistics hub in the United States. In addition to the Port of Stockton, the City is equipped with a regional airport, a Burlington Northern Santa Fe intermodal facility, and interstate freeway s. The University of the Pacific, Californ ia State University - Stanislaus-Stockton campus, Humphries College, and San Joaquin Delta Community College are all located in Stockton.

Four school districts serve K-12 students within City limits.

In January 2021, Stockton's population was 320,876, according to the California Department of Finance, which represents a 0.5% increase over last year's population estimate of 319,188. The California Department of Finance also projects the San Joaquin County population will continue to increase at a rate of approximately 1.08% and 1.1% through 2022 and 2023, respectively. As the 13th largest city in California, Stockton is comparable in size to other cities such as Pittsburgh, St. Paul, Cincinnati, and St. Louis.

Like every metropolitan area in the United States, Stockton's unemployment rate decreased to 8.5% in August 2021, from

12.2% in August 2020 (per the California Employment Development Department), primarily driven by the reopening of the economy after the COVID -19 pandemic restrictions were lifted . Per the Bureau of Labor Statistics, the national unemployment rate decreased to 5.2% in August 2021 from 8.4% in August 2020.

Stockton housing stats reflect a significant growth in home prices for 2021 which is projected to continue through 2022.

Zillow indicates that the median home value in Stockton is approximately $420,927, representing a 31% increase over the past year. Zillow also forecasts the upward trend to continue into 2022, with a projected 15.4% increase in home prices.

FINANCIAL CONDITION HIGHLIGHTS

Financial results for the year compare favorably with budget estimates in most areas of the City's operations. For the General Fund, fin ancial results for the year were better than estimated. Expenditures (including encumbrances and carryovers and other uses of funds) came in 6.3% under budget. Revenues (including other sources of funds) were 18.4% above budget estimates. As a result, the General Fund balance at June 30, 2021 (excluding related funds) of $76.4 million was combined with prior year reserve funds of $33.3 million for a total of $109.7 million available to fund reserves. The $109.7 million was allocated to the Working Capital operating reserve ($37.7 million), the known contingencies reserves ($41.8 million), the risk-based reserve categories ($5 million), and $22.6 million for one-time Council priority projects

The Ci
ty Council has a reserve policy that calls for the City to maintain a 17% operating reserve and establishes additional reserves for known contingencies, unforeseen revenue changes, infrastructure failures, and catastrophic events. Additionally, the policy sets an automatic process to deposit one-time revenue increases and expenditure savings into the reserves. These policies are consistent with the Government Finance Officers' Association (GFOA) best practice recommendations and Governmental Accounting and Standards Board (GASB) guidance.

The Statement of Net Position (revenues and sources of funds less expenses and uses of funds) for the City is approximately $1.56 billion. The City's net position is roughly $114.9 million higher, or 7.9%, than the prior fiscal year, mostly in Governmental Activities.

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The City's Long-Range Financial Plan

The City maintains a comprehensive and detailed 20-year Long-Range Financial Plan ("L-RFP"), which provides a long- term forecast for the City 's General Fund and other funds' impacts on the General Fund. The L-RFP is a vital tool and reflects the City's commitment to fiscal health and sustainability. This financial model is used to evaluate the immediate impact of budgetary decisions and the ongoing costs of those decisions over multiple years. The L-RFP was based on the City's bankruptcy exit plan, or Plan of Adjustment, which included certain assumptions and agreements reached with creditors. Since its development, the L -RFP has become a dyn amic tool that is updated based on current revenue and expenditure trends. Though the individual variables and assumptions may change over time, the L -RFP provides a consistent model to forecast the City's fiscal position.

A summary of the L-RFP is available on the City's website:

http://www.stocktonca.gov/government/departments/adminservices/budLrfp.html

For a more detailed analysis of the financial performance of the City, refer to the Management's Discussion and Analysis sections titled Financial Analysis of the City's Funds and General Fund Budgetary Highlights.

The City's Irrevocable Post-Employment Benefits Trust

On November 7, 2017, the City created an irrevocable post-employment benefits trust program, also known as an Internal Revenue Code Section 115 trust (Trust) . This Trust is designed to pre -fund pension costs and to offset GASB 68 net pension liabilities. The City has deposited $75.0 million ($61.5 million General Fund) into the Trust through June 30, 2021. The Trust allows the City to set aside funds through a tax- exempt funding mechanism to mitigate long- term contribution rate volatility. The Trust will enable the City to control the assets and when the City utilizes them. Also, the statutory investment r estrictions that apply to the City's investment portfolio do not apply to assets held in a post - employment benefits trust. The City will strive to accrue an amount in the Trust sufficient to fund annual CalPERS costs during economic downturns or other periods when annual revenues are forecast to be insufficient.

Access to the Financial Markets

The City has no long-term bonds backed by the General Fund. The last rating actions on the City's General Fund-backed debt was a Standard & Poor upgrade to "BB", with a continuing positive outlook in August 2018. In April 2019, Moody's issued an upgrade for the City's General Fund of "A3", from "Baa1". The City’s Wastewater utility rating remained stable with ratings of "A" by Standard & Poors and “A+” by Fitch. In 2021, both Standard & Poors and Fitch re-affirmed the City’s Water debt ratings of “A” and “AA-”, respectively. The Parking Revenue Bonds are currently rated at BBB- after revenues declined during the Covid pandemic shutdowns. Federal American Rescue Plan Act funds allow for replacement of revenues lost during the pandemic which will provide some relief to the Parking Fund and ensure debt coverage . In fiscal year 2021, t he City accessed the financial market once to facilitate a $4.5 million debt issuance that supported a new residential development.

The City does not anticipate issuing any bonds backed by the General Fund. However, the City does plan on incurring over $290 million in debt through various funding sources over the next several years to upgrade its wastewater facilities, including the renovation of the Regional Wastewater Control Facility (RWCF). T hese funding sources include a combination of rate bonds, a State Revolving Fund loan, and the Water Infrastructure Finance and Innovation Act (WIFIA) loan. In late 2022, the City will proceed with drawing funds from two lo w-interest loans for the RWCF renovation. The first will be a low-interest $108 million loan obtained through the WIFIA administered by the United States Environmental Protection Agency. This loan closed in September 2020, and when combined with cash on hand, it is anticipated to be used to prepay the short- term borrowing entered in 2019 in the form of Bond Anticipation Notes (BANs). The other low-interest loan is being sought through the California Clean Water State Revolving Fund (CWSRF) program. The CWDRF loan is anticipated to provide an additional $46.8 million in long-term funding for the next phases of the project and is expected to close during the 2022 fiscal year.

In addition, there may also be a need to issue land- based debt to support residential and industrial/commercial development.

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RESERVE POLICIES

The City's General Fund reserve policy calls for the City to maintain a 17% operating reserve (approximately two months of expenditures) and establishes additional reserves for known contingencies, unforeseen revenue changes, infrastructure failures, and catastrophic events. The known contingencies include amounts to address staff recruitment and retention, prefund future CalPERS costs, replace public safety radio infrastructure and the City's financial system, and relocate many City operations to the Waterfront Towers location . T he City’s Governmental Funds reported a combined ending fund balance of $505.6 million at the close of June 30, 2021, an increase of $200.9 million compared with the prior fiscal year.

The General Fund balance in this report, as of June 30, 2021, was $130.8 million without encumbrances. Included in this fund balance and under the guidance of the Reserve and Fund Balance Policy – General Fund (excluding related funds), Council took action to partially fund the priority one working capital reserve at $ 37.7 million, partially fund known contingency reserves at $41.8 million, and maintain the risk-based reserves at $5.0 million.

The policy establishes an automatic process to deposit one- time revenue increases and expenditure savings into the reserves. These policies are consistent with GFOA's best practice recommendations and GASB guidance.

The reserve policy is available on the City's website at:

http://www.stocktonca.gov/files/General_Fund_Reserve_Policy.pdf

DEBT POLICY AND ANNUAL CONTINUING DISCLOSURES

The City's debt policy is available on its website as follows:

http://www.stocktonca.gov/files/Capital_Financing_Debt_Management_Policy.pdf

The City's annual financial disclosures are available on the Municipal Securities Rulemaking Board's and Electronic Municipal Market Access website at http://emma.msrb.org.

INVESTMENT POLICY

The City adopts an investment policy annually that provides guidelines for the prudent investment of the City's cash balances. The City contracts with Public Financial Management for the day -to-day management of the City's long- term investm ent portfoli o. The Administrative Services Department oversees both the City's l ong-term investment portfolio management and liquid cash requirements. The City's investment policy is posted on the City's website:

http://www.stocktonca.gov/files/Investment_Policy_Final_080817.pdf

CASH AND INVESTMENTS

The California Government Code and the City's investment policy adopted in compliance with that Code define how the City can invest its cash. The City's policy also outlines the principles for maximizing the City's cash management operations' efficiency while meeting the daily cash flow demands of the City. The average overall return rate on funds not held by fiscal agents for the fiscal year ending June 30, 2021, was 0.08%. This amount includes both realized and unrealized gains distributed to funds. A bsent unrealized Fair Market Value gains and Accrued Interest amounts distributed on June 30, 2021, distributed returns would have been 0.38%.

Additional information on the City's cash and investment management can be found in Notes 1 and 2 in the notes t o the financial statements.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

The GASB establishes GAAP for local and state governments in the United States and Canada. Its counterpart for
private-sector entities is the F inancial Accounting Standard Board. The Am erican Institute of Certified Public

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Accountants and state and federal regulators require that financial reports follow GAAP to receive an unmodi fied audit opinion. The GFOA and the California Comm ittee on Municipal Accounting entail additional standards that govern disclosures in the ACFR.

GAAP requires management to provide a narrative overview and analysis discussing the Ci ty's financial position to accompany the basic financial statements. This na rrative overview is called Management's Discussion and Analysis (MD&A), which provides an analytical overview of the City's financial position for its significant funds, as defined by GAAP, on a government- wide basis. This letter of transmittal is intended to c omplement the MD&A and not to duplicate the MD&A. It provides additional qualitative information on impacts to the City to help improve the reader's understanding of the data presented in the ACFR.

The City's ACFR conforms to the require ments es tablished by GAAP, the City's Charter, GFOA standards, and agreements with
investors. The ACFR includes basic financial statements, footnotes, supplemental information required by GASB for GAAP financ ial reports, MD&A of the financial st atements, the City's independent auditor's opinion regarding the conformance of the financial statements with GAAP, and other information required to conform to GFOA standards.

INDEPENDENT
AUDIT

The City Charter, Article XIX, Section 1911, states: "after the close of the fiscal year, an annual audit shall be made of the City's funds . Such audit shall be made by a firm of independent certified public accountants." The Pun Group, LLP, an independent firm of licensed, certified public accountants, has audited t he City of Stockton's financial statements.

The purpose of the independent audit is to obtain reasonable assurance that the City's financial statements are fr ee of material
misstatement and are fairly presented in conformity with GAAP. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

The independent auditors issued an unmodified opinion for the fiscal year ended June 30, 2021.

SINGLE AUDIT REPORT TO FEDERAL GRANTING AGENCIES

A broader, federally- mandated " Single Audit," designed to m eet federal granting agencies' needs, is also required.

The standards governing S ingle Audit engageme nts require the independent auditor to report on the fair presentation of the financial statements and the audited government's internal controls and compliance with legal requirements, emphasizing internal controls and legal requirements involving the administration of federal awards.

The City prepares a separate single audit report in conform ity with the Federal Single Audit Act's provisions as amended and U.S. Office of Management and Budget Uniform Guidance, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards." This report is filed with the federal clearinghouse on or before March 31 each year.

RISK MANAGEMENT

During FY 2020- 21, the City continued its self -insurance program for General Liability, Property, and Workers' Compensation. The City is a member of the California Joint Powers Risk Management Authority for General Liability and All Risks Property Program, which is primarily underwritten by various insurance companies. The Property All Risks coverage is up to $400 million per occurrence with a $250,000 deductible. The self-insured retention ("SIR") for General Liability is $1.25 million. The City is also a member of the Public Risk Innovation, Solutions and Management insurance pool for excess Workers' Compensation coverage. The SIR is $500,000.

ATTACHMENT A

KIMBERLEY WARMSLEY

COUNCILMEMBER
District 6
KEVIN J. LINCOLN II
MAYOR

CITY OF STOCKTON

CITY COUNCIL

SOL JOBRACK

COUNCILMEMBER
District 1

CHRISTINA FUGAZI
VICE MAYOR
District 5

DAN WRIGHT

COUNCILMEMBER
District 2

PAUL CANEPA

COUNCILMEMBER
District 3

SUSAN LENZ

COUNCILMEMBER
District 4
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ATTACHMENT A

CITY OF STOCKTON

ORGANIZATION CHART
AS OF JUNE 30, 2021
CITIZENS OF STOCKTON
CITY COUNCIL
Mayor KEVIN LINCOLN
Vice Mayor CHRISTINA FUGAZI, District 5
Councilmember SOL JOBRACK, District 1
Councilmember DAN WRIGHT, District 2
Councilmember PAUL CANEPA, District 3
Councilmember SUSAN LENZ, District
Councilmember KIMBERLY WARMSLEY, District 6
City Attorney
JOHN LUEBBERKE
City Clerk
ELIZA GARZA
City Manager
HARRY BLACK
City Auditor
MOSS ADAMS, LLP
Information
Technology
Community
Services
Fire
Economic
Development
Human
Resources
Office of
Performance
and Data
Analytics
Public WorksCommunity
Development
Administrative
Services
Police
Deputy City Manager IIDeputy City Manager II
Municipal
Utilities
Office of
Violence
Prevention
xii

ATTACHMENT A

FINANCIAL SECTION

ATTACHMENT A

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Report on the Financial Statements

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 Stockton, California (the “City”), as of and for the year ended June 30, 2021, and the rela ted notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the audito r’s judgment, including th e assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is su fficient and appropriate to provide a basis for our audit opinions.

Opinions

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, 2021 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordan ce with accounting principles generally accepted in the United States of America.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM

ATTACHMENT A
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

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2 Emphasis of Matter

Implementation of GASB 84

As discussed in Note 1T to the basic financial stat ements, the City implemente d Governmental Accounting Standards Board (“GASB”) Statement No. 84, Fiduciary Activities. The adoption of the standard resulted in the custodial funds reporting beginning fiduciary net position in the amount of $44,517,999. Our opinion is not modified with respect to this matter.

Prior Period Adjustments

As discussed in Note 18 to the basic financial statements, the City recorded prior period adjustments in the Federal Housing Grant Special Revenue Fund of $81,267,949 and Nonmajor Governmental Funds of $70,838,069, in total of $152,106,018 in Governmental Funds due to improper reporting of deferred inflow of resources. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Sc hedules, the Schedule of Changes in Net Pension Liability and Related Ratios, and the Schedule of Pension Contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. 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 knowle dge we obtained during our audit of th e 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.

Other 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 Introductory Section, Combining Nonmajor Fund Financial Statements, Schedule of Sources and Uses – Measure A and B, and Sta tistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

ATTACHMENT A
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

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3 The Combining Nonmajor Fund Financial Statements, and the Schedule of Sources and Uses – Measure A and B are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basi c financial statements. Such informati on 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 gene rally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor F und Financial Statements, Schedule of Sources and Uses – Measure A and B are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our re port dated March 4, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agr eements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the internal control over financial reporting or on compliance. That report is an integral part of an a udit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
March 4, 2022

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MANAGEMENT'S DISCUSSION AND ANALYSIS

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MANAGEMENT’S DISCUSSION AND ANALYSIS

UNAUDITED

JUNE 30, 2021

INTRODUCTION
As management of the City of Stockton ( “City”), we offer readers of the City’s financial statements this overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with the accompanying Transmittal Letter, the Basic Financial Statements, and the Notes to the Financial Statements. All amounts, unless otherwise indicated, are expressed in thousands of dollars.

FINANCIAL HIGHLIGHTS

Government-wide:
• The City’s total net position for the governmental and business-type activities show that, as of June 30, 2021, total assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources by $1.56 billion. Of this amount, $39.3 million represents the deficit in the unrestricted net position, $504.9 million is restricted for City's ongoing obligation related to programs with external restrictions, and $1.1 billion represents the City's net investment in capital assets, less any related outstanding debt used to acquire those assets.
• Governmental revenues and transfers total $459.3 million and include program revenues of $156.1 million and general revenues of $303.2 million. Governmental expenses were $376.0 million. • Business-type program revenues, and investment earnings were $162.2 million, while business-type expenses were $128.8 million.

Fund Level:
• The City’s Governmental Funds reported a combined ending fund balance of $505.6 million at the close of June 30, 2021, an increase of $200.9 million compared with the prior fiscal year. The General Fund balance in this report, as of June 30, 2021, was $130.9 million without encumbrances. Included in this fund balance and under the guidance of the Reserve and Fund Balance Policy – General Fund (excluding related funds), Council took action to partially fund the priority one working capital reserve at $37.7 million, partially fund known contingency reserves at $41.8 million, and maintain the risk-based reserves at $5.0 million. • The total Governmental Fund revenues increased from the prior fiscal year by 18.9 percent. A large portion of this increase is attributable to special federal grants and subsidies for fiscal year 2020-21 with most related to COVID-19 pandemic recovery efforts. Other large increases were due to sales tax revenues, property tax, utiltity user fees ; however, the city saw a decrease in investment earnings due to low interest rate environment.

The total Governmental Fund expenditures increased by 15.8 percent compared to the prior fiscal year due to increased expenditures for general government, public safety and public works; this increase also entailed expenditure of federal grants and subsidies.

OVERVIEW OF THE FINANCIAL STATEMENTS

The City’s Annual Comprehensive Financial Report consists of four main components: 1) management’s discussion and analysis, 2) the basic financial statements, 3) required supplemental information, and 4) combining non- major fund financial statements. The basic financial statements include two kinds of statements that present different views of the City, the government-wide, and the fund financial statements:
• The government-wide financial statements provide both long- term and short-term information about the City’s overall financial status.
• The fund financial statements focus on the City government's individual parts, reporting the City’s operations in more detail than the government-wide statements.

4 ATTACHMENT A

OVERVIEW OF THE FINANCIAL STATEMENTS, CONTINUED
The ba
sic financial statements also include notes that provide additional information essential to understanding the data contained in the government-wide and fund financial statements. The statements and notes are followed by the Schedule of Changes in Net Pension Liability and Relations Ratios and Schedule of Changes in Contributions for the City’s pension plans which are required supplemental information. In addition to these required elements, we have included combining statements and schedules that provide details about the City’s other Governmental Funds, other Enterprise Funds, the Water Enterprise Fund, the Wastewater Enterprise Fund, Internal Service Funds, Investment Trust Funds, and Agency Funds, each of which is presented in a column in the basic financial statements.

Government-Wide Financial Statements:

The government-wide financial statements report information about the City using accounting methods like those used by private-sector companies. The statement of net position includes all the City’s assets and liabilities and any deferred outflows and inflows of resources. The statement of activities includes all current year revenues and expenses regardless of when cash is received or paid. These government -wide statements report the City’s net position and how the City’s net position has changed during the fiscal year. Over time, increases or decreases in position may serve as a useful indicator of whether the financial health of the City is improving or deteriorating.

The gover
nment-wide financial statements of the City are divided as follows:
• Governmental activities – Most of the City’s basic services are included here, such as police, fire, public works, community development, parks and recreation, and general government. Taxes and state and federal grants finance most of these activities.
• Business type activities – Certain services provided by the City are funded by customer fees. Among these are the City’s utility services, parking authority, and other non-major enterprise funds.

This Annual Comprehensive Financial Report (“A CFR”) includes the financial activity of the separate legal enti ty controlled by the City, the Stockton Public Financ ing Authority.

The Successor Agency’s activities are reported as a Private-Purpose Trust Fund in the ACFR. The City Council sits as the Successor Agency to the Stockton Redevelopment Agency’s Board. All actions about the Successor Agency’s obliga
tions are made by the Successor Agency Oversight Board, which is comprised of members representing the interests of local jurisdictions affected by red
evelopment activities and revenue claims, including the City.

The government-wide financial
statements can be found on pages 16-18 of this report.

Fund Financial Statements:

A fund is a gr
oup of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and dem onstrate finance-related legal compliance.

Fund financial statements provide more detailed information about the City’s largest funds, not the City as a whole.

The City has t hree types of fund financial statements: Governmental Funds, Proprietary F unds, and Fiduciary Funds.

Governmental Funds – Governmental Fund statements tell how general government services such as police, fire, and publi
c works, among others, were finances in the short term as well as what remains for future spending. Most of the City’s basic services are included in Governmental Funds, focusing on (1) short -term inflows and outflows of spenda
ble resources and (2) the remaining year-end balances available for spending. Because this information does not encompass the additional long-term focus of the government -wide statements, reconciliations that explain the relationship (or differences) between Governmental Funds and Governmental Activities follow the G overnmental Fund Statements.

The basic Governmental Fund Financial Statements can be found on pages 21-23 of this report. 5 ATTACHMENT A

OVERVIEW OF THE FINANCIAL STATEMENTS, CONTINUED
Fund Financial Statements, Continued:

Proprietary Funds - Services for which customer fees are intended to finance the costs of operations are generally repo
rted in Proprietary Funds. Proprietary Fund statements, like the government-wide statements, provide short-term a
nd long-term financial information about the activities the City operates like businesses, such as utility services, park
ing facilities, and marina operations. Data for remaining Non-major Enterprise Funds are combined into a single, aggregated presentation.

The basic Proprietary Fund financial statements can be found on pages 27 -36 of this report.

Fiduciary Funds - Fiduciary Fund statements provide information about the financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the resources belong. The City is the trustee, or fiduciary, for a closed pension plan. It is also responsible for other assets reported in an investment trust fund, which, because of trust agreements, can be used only for the trust beneficiaries. The City elected to serve as the Successor Agenc
y for its former Redevelopment Agency, which was dissolved by state law. The Successor Agency activity is accounted for in a Private Purpose Trust Fund. The City is responsible for ensuring that assets reported in these funds are used for their intended purposes. All the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City’s govern
ment-wide financial statements because the City cannot use these resources to finance its operations.

The basic Fiduciary Fund's financial statement can be found on pa ges 40-41 of this report.

Notes to the Basic Financial Statements
The notes to the financial statements provide additional information that is essential to a full unde rstanding of the financial information provided in the government-wide and fund financial statements.

The notes to
the financial statements can be found on pages 44-107 of this report.

O
ther information
In
addition to the basic financial statements, t his report presents certain requi red supplementary information. This information provides a budgetary comparison schedule for the General Fund, Federal Housing Grants Special Revenue Fund, and the Special Grants Fund, as well as information about the City's participati on in the PERS and PARS defined benefit pension plans.

Required supplementary information can be found on pages 108-120 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
The City’s ne t position m ay serve over time as a us eful indicator of a government’s financial health or financial position. As of June 30, 2021, the Ci ty’s total assets and deferred outflows of resources exceeded its liabilities and def
erred inflows of resources by $1.56 billion, which is an increase of $114.9 million or 7.9 percent c ompared to the prior fiscal year.
6 ATTACHMENT A

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Analysis of Net Position, Continued:

The following is the condensed statement of net position for the fiscal years ended June 30, 2021, and 2020 (amounts in thousands):

The pri
mary components of the City’s net position consist of the following elements:
• The investment in capital assets (e.g., infrastructure, land, buildings, improvements other than buildings, construction in progress, and equipment), less any related debt used to acquire assets still outstanding, represents the largest portion of the City’s net position of $1.1 billion or 70.2 percent. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City reports its investment in its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources because proceeds from the sale of capital assets are not used to liquidate these liabilities.
• External restrictions represent $50 4.9 million or 32.3 percent of net position and are subject to various external restrictions on how they may be used. Creditors, grantors, contributions, or laws and regulations of other governments have imposed this component of the net position; or it has been imposed by law through enabling legislation or constitutional provisions.
• The unrestricted net position reflects a deficit of $39.3 million or (2.5) percent. Information about changes in net position for FY 2020-21 and FY 2019-20 is summarized below. The ACFR discusses the reasons for the changes in the sections for governmental activities and business-type activities. 2021 2020 2021 2020 2021 2020
Assets:

Current and other assets 838,854$ 692,226$ 314,743$ 339,317$ 1,153,597$ 1,031,543$ Capital assets 792,778 776,373 767,032 713,058 1,559,810 1,489,431 Total assets 1,631,632 1,468,599 1,081,775 1,052,375 2,713,407 2,520,974 - - Deferred Outflow of Resources:

Unamortized loss on refunding of debt - - 14,555 15,464 14,555 15,464 Pensi
on-related deferred outflows of resources 76,508 84,784 2,528 2,537 79,036 87,321 Total Deferals-Outflows 76,508 84,784 17,083 18,001 93,591 102,785 - - L iabilities:

Current and other liabilities 118,953 56,784 40,847 30,845 159,800 87,629 Long-te
rm obligations 116,636 118,211 404,166 416,013 520,802 534,224 Net Pension liability 533,858 518,320 15,774 17,709 549,632 536,029 Total liabilities 769,447 693,315 460,787 464,567 1,230,234 1,157,882 - - Deferred Inflow of Resources:

Deferred Rent - - - - -
Pensi
on-related deferred inflows of resources 11,688 16,280 1,405 868 13,093 17,147 Total Deferrals Inflows 11,688 16,280 1,405 868 13,093 17,147 - - Net position:

Net investment in capital assets 732,219 724,164 365,873 301,434 1,098,092 1,025,598 Restr
icted 458,650 239,339 46,241 125,668 504,891 365,007 Unrestricted (deficit) (263,864) (119,715) 224,551 177,840 (39,313) 58,125 Total net position 927,005$ 843,788$ 636,665$ 604,942$ 1,563,670$ 1,448,730$ Business-Type
Activ ities Total
Governmental
Activ ities
7 ATTACHMENT A

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Analysis of Net Position, Continued:

The following table indicates the change in net position for Governmental and Business -type activities (amounts in thousands):

2021 2020 2021 2020 2021 2020
Rev enues
Program revenues:

Charges for services 65,693 $ 27,901$ 148,966 $ 140,933$ 214,659$ 168,834$ Operating grants and - - - Operating grants and contributions 51,328 21,509 - 7,314 51,328 28,823 Capital grants and contributions 39,065 30,227 13,263 7,258 52,328 37,485 General revenues: - - -
Property taxes 38,523 36,692 - - 38,523 36,692 Utility user taxes 36,414 34,537 - - 36,414 34,537 Sales and use taxes (City levied) 68,639 57,077 - - 68,639 57,077 Franchise taxes 16,901 15,292 - - 16,901 15,292 Business licenses 15,695 14,557 - - 15,695 14,557 Hotel/motel room taxes 2,860 2,834 - - 2,860 2,834 Document transfer taxes 1,222 912 - - 1,222 912 Other taxes 2,874 3,262 - 1,407 2,874 4,669 Motor vehicle fees in lieu 27,757 31,839 - - 27,757 31,839 Sales and use taxes (State levied) 65,201 56,122 - - 65,201 56,122 Other shared revenue - 18,303 - - - 18,303 Investment earnings 14,086 21,759 57 9,318 14,143 31,077 M iscellaneous 11,105 9,469 - - 11,105 9,469 Gain (loss) on disposal of capital assets 148 12 - (2) 148 10 Gain on loan forgiveness (Note 19) - (547) - - - (547) Total revenues 457,511 381,757 162,286 166,228 619,797 547,985 E xpenses - - -
General government 74,313 37,269 - - 74,313 37,269 Pub
lic safety 217,954 217,941 - - 217,954 217,941 Public works 55,087 44,922 - - 55,087 44,922 Library 12,792 14,657 - - 12,792 14,657 Parks and recreation 11,527 27,798 - - 11,527 27,798 Interest and fiscal charges 4,373 5,298 - - 4,373 5,298 Water utility - - 54,266 47,974 54,266 47,974 Wastewater utility - - 61,124 63,983 61,124 63,983 Stormwater utility - - 6,759 6,599 6,759 6,599 Central parking district - - 4,995 5,795 4,995 5,795 Other - - 1,667 2,499 1,667 2,499 Total expenses 376,045 347,885 128,811 126,850 504,856 474,735 Increase/(decrease) in net - - - position before transfers 81,466 33,872 33,474 39,378 114,941 73,250 Transfers 1,751 (922) (1,751) 922 - - Change in net position 83,218 32,950 31,723 40,300 114,941 73,250 Net position, beginning - 810,838 - 564,642 - 1,375,481 Prior period adjustment - - - - - - Net position, beginning, as restated 843,788 810,838 604,942 564,642 1,448,730 1,375,481 Net position, end of year 927,005 $ 843,788$ 636,665 $ 604,942$ 1,563,670$ 1,448,730$ Governmental
Activities
Business-Type
Activities Total
8 ATTACHMENT A

GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Analysis of Net Position, Continued:

Gover
nmental activities: The change in net position increased by $83.2 million compared to the prior fiscal year due to these following variances:
• Total g
overnmental activities revenues increased by $75.8 million or 19.8 percent compared to the prior fiscal year. The increase were mostly attributable to additional operating grants and contributions under program revenues, and state & city levied sales and use taxes. However, due to the low interest rate environment, there was $7.7 million revenue decrease in investment earnings. • Total governmental activities expenses show an increase of $28.2 million. A large part of this increase is attributed to the expenditure of special grants received related to COVID-19 recovery efforts.

Business-type activities: The change in net position increased by $ 31.7 mi llion compared to t he prior fiscal year primarily due water rate increases to cover operating costs and capital commitments.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The
City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

This analysis should be read in conjunction with fund financial statements beginning on page 21.

Governmental Funds
As
o f June 30, 2021, the City’s Governmental Funds reported a combined ending balance of $505.6 million, an increase of $200.9 million compared t o the prior fiscal year. The total fund balance of the Gover nmental Funds consists of the following:
• The non-
spendable fund balance of $154.7 million were amounts that inherently cannot be spent , such as inventories and prepaid items. Also, long-term loans and notes receivable, and property held for resale would be reported here unless the proceeds are restricted, committed, or assigned. • Restricted fund balance of $227.7 million that is based on restrictions imposed by external parties or enabling legislation.
• Committed fund balance of $77.6 million was constrained for a specific purpose by the City Council through resolution. It would require action by the same group to remove or change the constraints placed on the resources.
• Assigned fund balance of $4.5 million was constrained for the intent to be used for a specific purpose by a governing board or a body or official that has been delegated authority to assign amounts. The amount reported as assigned should not result in a deficit in the unassigned fund balance. • The unassigned fund balance of $41.1 million includes the working capital reserve established in the Reserve and Fund Balance Policy-General Fund to accommodate normal fluctuations in the timing of revenues and unforeseen operational costs.
9 ATTACHMENT A

FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED
Governmental Funds, Continued:

Revenue
s – The following table presents revenues (amounts in thousands) classified by source with a comparison to the prior fiscal year:

The gra
ph below shows 2021 revenue categories as a percent of the total. 10 ATTACHMENT A

FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED
Governmental Funds, Continued:

The fo
llowing bullets provide an explanation of significant changes in revenues compared with the prior fiscal year:
• Sales tax revenues, reported under both Sales taxes and intergovernmental revenues, increased $21.8 million (18 percent) over the prior year as consumer spending habits shifted during the pandemic and federal stimulus dollars added to household disposable income. A change in rep orting by a taxpayer mid-year resulted in additional tax revenues coming directly to the City rather than shared through a pool. • Federal grants and other intergovernmental revenues were approximately $50 million greater than the prior year primarily due to additional COVID relief funds.
• Property tax revenues saw an increase due to a strong real estate market. • Due to the historic low interest rate environment, interest income was significantly lower than the prior year. • Business license fees reflect an increase in cannabis businesses in the City and growth in new business licenses.
• Transient occupancy tax revenues remains low due to the partial year closure of hotels and motels in response to the COVID-19 pandemic.

Expendit
ures - The following table presents expenditures (amounts in thousands) by function compared with the prior fiscal year:

The fo
llowing bullets explain the expenditures that changed significantly compared with the prior fiscal year. • General government expenditure increased by $42.0 million and a large portion of this is attributed to the special grants in the amount of $29.3 million.
• Public safety expenditures increased $12.1 million, resulting from new labor agreements and contributions to the CalPERS system increased the cost of retirement benefits for public safety personnel. • Public Works expenses increased with a corresponding decrease in the Parks and Recreation category due to a change in the City’s chart of accounts that moved parks maintenance expenses to the Public works function. • Expenses for Library and Recreation activities decreased due to the partial closure of library and recreation facilities during the fiscal year resulting in lower part-time, materials, and programing expenses.

Percent of Percent of Percent o f
Expenditures by Function Amount Total Amount Total Amount Change Current:

General government 72,185$ 19.3% 30,148$ 9.3% 42,037$ 139.4% Public safety 205,923 55.1% 193,778 60.1% 12,145 6.3% Public works 41,960 11.2% 20,120 6.2% 21,840 108.6% Library 12,762 3.4% 14,400 4.5% (1,638) -11.4% Parks and recreation 8,207 2.2% 25,920 8.0% (17,713) -68.3% Capital outlay 26,127 7.0% 31,225 9.7% (5,098) -16.3% Debt service 6,422 1.7% 6,928 2.1% (506) -7.3% Total 373,587$ 100.0% 322,519$ 100.0% 51,068$ 15.8% Increase/(Decrease)2021 2020
11 ATTACHMENT A

General Fund
Below
is a graph that depicts the change in General Fund balances between FY 2020-21 and FY 2019- 20. The assigned and committed balances have increased from the prior fiscal year.

Fund Bal
ance
(in millions)
NOTE
: Does not include PARS 115 Trust
The Ci
ty’s General Fund provides police, fire, development, public works, and administrative services to the City’s residents, other funds, businesses, and visitors. The General Fund is distinct from the City’s other funds because it is the only source of unrestricted funds that the City Council can allocate at its discretion for any municipal purpose.

Genera
l Fund revenues were $286.4 million at the close of June 30, 2021, an increase of $18.2 million (6.8 percent) compared to the prior fiscal year. Significant changes in General Fund revenues compared with the previous fiscal year include:
• Sales tax le
vied by the City and the state was up significantly this year ($20.6 million) compared to the prior fiscal year from a combination of pandemic driven shifts in consumer spending habits, federal stimulus dollars, price inflation, and a shift in reporting of a major taxpayer. • Proper
ty tax revenues increased by $1.8 million due to a steady increase in property values and increased new non-residential construction.
• Inter
est income from the City’s short- and long-term investment portfolios was down $0.8 million compared to the prior fiscal year due to the low interest rate environment.

Genera
l Fund expenditures were $238.2 million, an increase of $4.6 million (2.0 percent) compared to the prior fiscal year. General government expenses increased by $9.9 million compared to the last fiscal year. Public safety expense growth of $3.7 million was primarily the result of retirement benefits and negotiated salary increases. 12 ATTACHMENT A

Proprietary Funds
The City’s Proprietary Fund Financial Statements provide the same type of information found in the G overnment- Wide
Financial Statements but in more detail. At the end of June 30, 2021, bus iness-type activities' net position was $636.7 million, an increase of $31.7 million or 5.2 percent compared to the prior fiscal year.

The assets and deferred outflow s of resources increased by a combined total of $28.5 million. Of this amount, the cur
rent cash and investments and other existing assets decreased by $24.6 million, and non-current assets, including capital assets and deferred outflows, increased by $53.1 million.

The
liabilities and deferred inflows of resources decreased by $3.8 million due primarily to the principal payments made on debt and pension-related adjustments.

GENERAL FUND BUDGETARY HIGHLIGHTS
The City’s FY 2020-21 General Fund Adopted Budget funded the City’s most pressing needs in support of the Counci
l’s strategic priorities. However, it continued to be constrained by the City’s long-term financial outlook. The FY 2020-21 budget was developed in the first three months of the COVID-19 pandemic when the impacts of the unpre
cedented event was completely unknown. The City produced a balanced and fiscally prudent budget plan with proj
ected revenue losses and no layoffs or service reduction to offset these losses. P rior year reserves enabled the General Fund to weather the predicted economic downturn wit hout budget cuts. The adopted budget included some incremental service-level enhancements consistent with Council-adopted strategic priorities. This analysis should be read in conjunction with the General Fund Budgetary Information beginning on page 111.

The General Fund’s original budgeted revenues totaled $241.1 million and were increased to $241.4 million during the f
iscal year. The General Fund end ed t he fiscal year with total revenues of $286.4 million, reflecting a $45.0 m
illion or 18.6 percent, increase over the final budget. The anticipated economic downturn from the worldwide pandemic caused declines or stagnation in many of the General Fund revenue categories, but the large st revenue sources experienced growth during FY 2020- 21. The mo st considerable variance wa s sales tax revenues at $32.7 million more than the budget. The next largest budget variances were in the Business License and Utility User Tax categories.

The General Fund’s original expenditure budget of $254.2 million was adjusted by encumbrances and commitments carried forward from the prior year for a total final budget of $264.6 million. All General Fund depa rtmental activities ended the fiscal year below budget. The Non-de partmental category shows an overage due to a year-end change in how pooled investment expenses are reported which resulted in expenditures of $5.7 million previously netted with inves
tment revenues and held outside the General Fund. A ctual expenditures and transfers-out w ere lower than the final approved budget appropriations by $26. 6 million, or 8. 9 percent . Of this variance, $ 10.8 million in appropriations rolled into FY 2021-22 for encumbrances, capital projects, and specific City Council authorized activi
ties. General Government departments achieved a savings of $7.8 million, Public Works activities were under budget by $3 .0 million, Parks and recreation activities were under budget by $1 .0 million, Library expenses were $2.0 mi
llion below budget, and $10.4 million was saved in Public Safety. Approximately $10.1 million of the savings was the result of higher -than-antici pated vacancies across all General Fund departments. Library, recreation, and ente
rtainment venues were all under budget as a result of the shutdown of these facilities during the COVID-19 shelt
er in place orders. These areas also experienced corresponding revenue reductions.

The City’s General Fund balance at June 30, 2021, was $122.9 million on a budgetary basis, which is an increase of $8.3 million from the prior year. This reporting of General Fund balance includes general services to the public such as public safety and streets, libraries, recreation centers, and emergency dispatch, whereas the quarterly budget status reports released through the City Council break down the general operations ($116.9 mil lion) separate from ancillary services of libraries, recreation, etc.
13 ATTACHMENT A
14 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounted to $1.6 billion (net of accumulated depreciation). Net investment in capital assets includes infrastructure, land, buildings, and improvements other than buildings, intangible assets, equipment , and construction in progress. The total change in the City’s net investment in capital assets for the current fiscal year was an increase of 4.7 percent.

The City’s capital assets, net of accumulated depreciation, for the governmental and business- type activities are presented below to illustrate changes from the prior year (amounts in thousands):

Additional information on the City’s capital assets can be found in Note 6 - Capital Assets of this report.

Bond In
debtedness
At the e
nd of the fiscal year, the City’s total outstanding net bonded debt , including bankruptcy settlements , was $475.4 million. Of this amount, $59.6 million is related to governmental activities, and $415.7 million are debt obligations of business-type activities.

Governm
ental activities bonded indebtedness decreased by $2.0 million because of the scheduled principal payments.

Busines
s-type activities bonded indebtedness also decreased by $11.4 million due to the scheduled debt service payments for the enterprise debt.

Governm
ental outstanding net bonded debt of $59.6 million includes $53.1 million in settlement liability to the bond insurer (Assured Guaranty) for 2007 bonds adjusted in bankruptcy.

Busines
s-type activities outstanding net bonded debt obligations of $415.7 million includes $202.7 million of revenue bonds of the Water Utility, $172.4 million in revenue bonds and bond anticipation notes for the Wastewater Utility, and $29.7 million in revenue bonds for the Parking Authority. Marina operations have a loan obligation of $10.9 million through the State Department of Parks and Recreation. This obligation no longer accrues interest due Total
2021 2020 2021 2020 2021 2020
Land 38,197$ 40,827$ 15,127$ 11,689$ 53,324 $ 52,516 $ Intangible Assets 4,355 4,355 - 804 4,355 5,159 Building and
Improvements 171,459 175,947 623,065 633,368 794,524 809,315 M achinery and
Equipment 28,124 25,976 5,574 5,929 33,698 31,905 Infrastructure 388,419 389,295 - - 388,419 389,295 Construction
in Progress 162,225 139,973 123,266 61,269 285,491 201,242 Total 792,779$ 776,373$ 767,033$ 713,059$ 1,559,811 $ 1,489,432 $ A ctiv ities
Business-Type
A ctiv ities
Governmental

ATTACHMENT A

to the bankruptcy settlement. The General Fund annually subsidizes the Marina’s operations, and payments on this loan will not commence until subsidization is no longer needed.

Successor Agency bonded debt of $95.6 million is reported separately in a Private Purpose Trust Fund. The balance outstanding at June 30, 2021, includes $80.7 million of tax-exempt tax allocation bonds issued to refinance revenue bonds for various former redevelopment projects and $14.8 million of taxable tax allocation bonds issued to refinance revenue bonds for various housing projects.

Additi
onal information on the City’s long-term debt can be found in Note 7 - Long-Term Debt of this report.

Reques
ts for Information
This f
inancial report is designed to provide citizens, taxpayers, customers, grantors, investors , and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Administrative Services Department of the City of Stockton at City Hall, 425 North El Dorado Street, Stockton, CA 95202.

Finan
cial reports are available on the City’s website at:
http://
www.stocktongov.com/government/departments/adminservices/finrep.html 15 ATTACHMENT A

BASIC FINANCIAL STATEMENTS

ATTACHMENT A

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ATTACHMENT A

ATTACHMENT A
Governmental Business-Type
Activities Activities Totals
Cash and investments 542,814,801$ 265,387,686$ 808,202,487$ Restricted cash and investments 69,656,247 24,124,222 93,780,469 Interest receivable 1,405,822 578,867 1,984,689 Accounts receivable, net 15,356,425 28,163,564 43,519,989 Due from other governments, net 43,275,089 569,530 43,844,619 Internal balances 7,641,173 (7,641,173) - Inventory of supplies 517,418 1,863,350 2,380,768 Prepaid items 1,810,759 1,421,578 3,232,337 Advance deposits 3,163,499 84,935 3,248,434 Loans to Successor Agency, net 1,106,580 - 1,106,580 Loans to property owners, net 152,106,019 190,000 152,296,019 Capital assets:

Nondepreciable 204,776,468 138,393,456 343,169,924 Depreciable, net 588,001,993 628,638,998 1,216,640,991 Total assets 1,631,632,293 1,081,775,013 2,713,407,306 Unamortized loss on refunding of debt - 14,554,574 14,554,574 Pension-related deferred outflows of resources 76,507,673 2,527,997 79,035,670 Total deferred outflows of resources 76,507,673 17,082,571 93,590,244 Accounts payable and accrued expenses 22,240,234 20,527,898 42,768,132 Accrued payroll and benefits 3,614,697 1,312,001 4,926,698 Due to other governments/agencies 2,433,776 95,237 2,529,013 Accrued interest 1,236,538 3,522,478 4,759,016 Deposits and other liabilities 1,689,796 2,248,713 3,938,509 Unear
ned revenue 65,372,413 - 65,372,413 Long-term liabilities:

Due within one year:

Compensated absences 7,088,691 1,040,836 8,129,527 Claims payable 13,156,704 - 13,156,704 Long-term debt 2,120,499 12,099,764 14,220,263 Due in more than one year:

Compensated absences 6,028,199 552,345 6,580,544 Claims payable 53,158,922 - 53,158,922 Long-term debt 57,448,658 403,613,866 461,062,524 Aggregate net pension liability 533,857,535 15,774,105 549,631,640 Total liabilities 769,446,662 460,787,243 1,230,233,905 11,688,194 1,405,368 13,093,562
Tota
l deferred inflows of resources 11,688,194 1,405,368 13,093,562 Net investment in capital assets 732,219,210 365,873,398 1,098,092,608 Restricted 458,649,711 46,240,750 504,890,461 Unrestricted (deficit) (263,863,811) 224,550,825 (39,312,986) Total net position 927,005,110$ 636,664,973$ 1,563,670, 083$ City of Stockton
Statement of Net Position
June 30, 2021

NET POSITION

DEFERRED INFLOWS OF RESOURCES

LIABILITIES

DEFERRED OUTFLOWS OF RESOURCES
ASSETS
Pension-related deferred inflows of resources
See accompanying Notes to the Basic Financial Statements.

16 ATTACHMENT A
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions PRIMARY GOVERNMENT:

Governmental activities:

General government 74,312,547$ 12,559,615$ 46,057,646$ 3,345,580$ Public safety 217,954,243 13,234,602 3,662,323 - Public works 55,086,489 32,456,438 1,552,970 35,719,804 Library 12,791,645 7,037,164 52,418 - Parks and recreation 11,526,450 405,517 3,000 - Interest and fiscal charges 4,373,159 - - - Total governmental activities 376,044,533 65,693,336 51,328,357 39,065,384 Business-type activities:

Water utility 54,266,068 64,096,970 - 7,958,982 Wastewater utility 61,123,797 73,884,879 - 4,864,534 Stormwater utility 6,759,309 6,040,418 - 439,138 Parking Authority 4,995,394 4,588,984 - - Downtown Marina 1,098,716 330,543 - - Golf Courses 568,057 24,304 - - Total business-type activities 128,811,341 148,966,098 - 13,262,654 Total 504,855,874$ 214,659,434$ 51,328,357$ 52,328,038$

Program Revenues
City of Stockton
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

17 ATTACHMENT A
Governmental Business-Type
Functions/Programs Activities Activities Totals
PRIMARY GOVERNMENT:

Governmental activities:

General government (12,349,706)$ -$ (12,349,706)$ Public safety (201,057,318) - (201,057,318) Public works 14,642,723 - 14,642,723 Library (5,702,063) - (5,702,063) Parks and recreation (11,117,933) - (11,117,933) Interest and fiscal charges (4,373,159) - (4,373,159) Total governmental activities (219,957,456) - (219,957,456) Business-type activities:

Water utility - 17,789,884 17,789,884 Wastewater utility - 17,625,616 17,625,616 Stormwater utility - (279,753) (279,753) Parking Authority - (406,410) (406,410) Downtown Marina - (768,173) (768,173) Golf Courses - (543,753) (543,753) Total business-type activities - 33,417,411 33,417,411 Total net (expense) revenue (219,957,456) 33,417,411 (186,540, 045) General revenues and transfers:

General revenues:

Taxes:

Property 38,522,990 - 38,522,990 Utility user 36,413,826 - 36,413,826 Sales - levied by City 68,639,026 - 68,639,026 Franchise fees 16,900,562 - 16,900,562 Business license 15,694,829 - 15,694,829 Transient occupancy tax 2,860,447 - 2,860,447 Document transfer 1,221,516 - 1,221,516 Other 2,873,644 - 2,873,644 Shared revenue:

Vehicle license fees 27,757,385 - 27,757,385 Sales and use tax levied by state 65,200,850 - 65,200,850 Investment earnings 14,085,666 56,996 14,142,662 Miscellaneous 11,105,437 - 11,105,437 Gain (loss) on disposal of capital assets 147,497 - 147,497 Transfers 1,751,430 (1,751,430) -
Total general revenues and transfers 303,175,105 (1,694,434) 301,480,671 Changes in net position 83,217,649 31,722,977 114,940,626 Net position:

Beginning of year 843,787,461 604,941,996 1,448,729,457 End of year 927,005,110$ 636,664,973$ 1,563,670, 083$ Change in Net Position
Net (Expense) Revenue and
City of Stockton
Statement of Activities and Changes in Net Position (Continued) For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

18 ATTACHMENT A

19 ATTACHMENT A

FUND FINANCIAL STATEMENTS

ATTACHMENT A

ATTACHMENT A
Governmental Fund Types
The City's major governmental funds include:

GOVERNMENT FUND FINANCIAL STATEMENTS
Special revenue and capital projects funds are used to account for the financial resources that are restricted, committed, or assigned to expenditures for special purposes or capital outlays, including the acquisition and development of capital facilities and other capital assets.

Governmental funds consist of the general fund, special revenue, debt service, capital projects, and permanent funds.

General Fund
To account for resources not accounted for in another fund. T he General Fund is the C ity's main operating fund reflecting tra
nsactions related to municipal governmental ser vices supported by taxes, intergovernmental r evenues, charges for services and other governmental typ e revenues.

Fed
eral Housing Grants Special Revenue Fund
To account for federal grant programs and other resources that provide for development of a viable urban community by providing a suitable living environment, loans to non-profit hous ing developers to acquire and r ehabilitate abandoned and foreclose homes, and providing a ffordable housing ass istance to qualified low- and moderate-income households. This fund inc
ludes the City’s annual federal funding from the Community Development Block Grant, Community Rehabilitation Loan program, federal revolving loan program, revitalization activities in the designated Urban Development Action Grant area, Housing and Urban Development (HUD) Section 108, HOME Housing grants and loans, and Neighborhood Stabilization Loan Program (NSP Funds ).

Speci
al Grants Special Revenue Fund
To account for one-time resources received through the federal CA RES and American Rescue Plan Act and in addition to some comparatively smaller grants from federal and state governments to support public s afety and other community programs which are not otherwise accounted for in other special rev enue funds.

Cap
ital Improvement Capital Projects Fund
To account for the acquisition, construction and improvement of capital facilities as required by City Council action or state law in which the projects are financed by grants, lease proceeds and tr ansfers from ot her City governmental funds.

See accompanying Notes to the Basic Financial Statements. 20 ATTACHMENT A
Capital Projects
Federal Other Total
General Housing Special Capital Governmental Governmental Fund Grants Grants Improvement Funds Funds
Cash and investments 113,935,176$ 3,242,139$ 66,626,599$ 26,888,375$ 181,113,541$ 391,805,830$ Cash and investments with fiscal agents - 1,576,301 - - - 1,576,301 Receivables, net:

Interest 404,664 1,114 119,707 4,111 444,583 974,179 Accounts and other receivables 13,118,997 223,423 148,499 - 1,325,337 14,816,256 Due from other governments, net 23,855,679 - 108,933 7,931,187 11,315,056 43,210,855 Inventory of supplies 427,211 - - - - 427,211 Prepaid items 55,541 - - - - 55,541 Advance deposits 1,731,882 - 108,354 - 133,297 1,973,533 Loans to Successor Agency, net - - - - 1,106,580 1,106,580 Loans to property owners, net - 81,267,950 - - 70,838,069 152,106,019 Total assets 153,529,150$ 86,310,927$ 67,112,092$ 34,823,673$ 266,276,463$ 608 ,052,305$ Liabilities:

Accounts payable 8,814,622 272,255 614,281 5,251,874 3,654,069$ 18,607,101$ Accrued payroll and benefits 1,703,336 32,081 94,164 74,911 1,256,530 3,161,022 Interest payable 15,600 - - - - 15,600 Loans to other funds 780,000 - - - - 780,000 Due to other governments 1,916,478 - - - 517,298 2,433,776 Deposits and other liabilities 942,161 - - - 698,531 1,640,692 Unearned revenue 1,566,676 - 63,805,737 - - 65,372,413 Total liabilities 15,738,873 304,336 64,514,182 5,326,785 6,126,428 92,010,604 Deferred inflows of resources:

Unavailable revenue - other 6,933,158 - - 1,957,834 1,523,624 10,414,616 Total deferred inflows of resources 6,933,158 - - 1,957,834 1,523,624 10,414,616 Fund Balances:

Nonspendable 2,214,634 81,267,950 - - 71,194,203 154,676,787 Restricted 5,385,183 4,738,641 2,597,910 27,539,054 187,432,208 227,692,996 Committed 77,638,440 - - - - 77,638,440 Assigned 4,526,246 - - - - 4,526,246 Unassigned 41,092,616 - - - - 41,092,616 Total fund balances 130,857,119 86,006,591 2,597,910 27,539,054 258,626,411 505,627,085 153,529,150$ 86,310,927$ 67,112,092$ 34,823,673$ 266,276,463$ 608,052,305$ City of Stockton
Balance Sheet
Governmental Funds
June 30, 2021
ASSETS

LIABILITIES, DEFERRED INFLOWS OF
Total liabilities, deferred inflows of
resources and fund balances

RESOURCES AND FUND BALANCES
Major Funds
Special Revenue Funds
See accompanying Notes to the Basic Financial Statements.

21 ATTACHMENT A
Total Fund Balances - Total Governmental Funds 505,627,085$ Amounts reported for governmental activities in the Statement of Net Position are different because:

Non-depreciable (net of $11,593,030 reported in the Internal Service Funds) 193,183,438 566,244,664
193,642,699
Compensated absences (net of $606,805 reported in Internal Service Funds) (12,510,085) (59,362,671)
in General Fund) (1,196,580)
(533,857,535)
76,507,673
(11,688,194)
Unavailable revenue - Others 10,414,616
Net position of governmental activities 927,005,110$
City of Stockton
Reconciliation of the Balance Sheet of Governmental Funds to the Government-Wide Statement of Net Position
June 30, 2021
Internal Service Funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of internal service funds are included in governmental activities in the Government-Wide Statement of Net Position.

Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental funds' Balance Sheet.

Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the governmental funds.

Revenues which are unavailable on the Fund Balance Sheet, because they are not available currently, are taken into revenue in the Statement of Activities:

Aggregate net pension liability is not due and payable in the current period and therefore is not required to be reported in the governmental funds.

Actuarially determined pension deferred outflows of resources are reported in the government-wide statements but are not reported in the governmental funds.

Actuarially determined pension deferred inflows of resources are reported in the government-wide statements but are not reported in the governmental funds.

Depreciable (net of accumulated depreciation $65,525,419, and net capital assets $21,757,329 reported in the Internal Service Funds)
Bonds payable and other long-term debt (net of $206,486 in capital leases reported in Internal Service Funds) Accrued interest payable (net of $24,358 reported in Internal Service Funds and $15,600 reported See accompanying Notes to the Basic Financial Statements.

22 ATTACHMENT A
Capital Projects
Federal Total
General Housing Special Capital Other Governmental
Fund Grants Grants Improvement Governmental Funds
REVENUES:

Taxes:

Property 38,522,990$ -$ -$ -$ -$ 38,522,990$ Utility user 36,413,826 - - - - 36,413,826 Sales - levied by City 40,810,516 - - - 27,828,510 68,639,026 Franchise fees 16,900,562 - - - - 16,900,562 Business license 14,090,618 - - - 1,604,211 15,694,829 Hotel/motel room 2,860,447 - - - - 2,860,447 Document transfer 1,221,516 - - - - 1,221,516 Other 2,873,644 - - - - 2,873,644 Licenses and permits 566,109 - - - 7,103,825 7,669,934 Intergovernmental:

Federal grants and subsidies 219,700 4,426,326 19,733,363 5,946,182 13,242 30,338,813 Sales and use tax - levied by state 65,200,850 - - - - 65,200,850 Other governmental 39,246,217 - 24,153,199 7,929,109 27,832,495 99,161,020 Charges for services 9,541,329 2,625 - - 2 1,785,753 31,329,707 Fines and forfeitures 282,885 - - - 96,328 379,213 Use of money and property 4,625,139 836,255 - - 269,258 5,730,652 Investment income:

Interest income (loss) 6,788,272 (31,853) 769,282 (20,836) 280,334 7,785,199 Refunds and reimbursements 438,105 - - 525 163,400 602,030 Miscellaneous 5,793,626 1,946,739 10,347 280,218 2,158,392 10,189,322 Total revenues 286,396,351 7,180,092 44,666,191 14,135,198 89,135,748 441,513,580 EXPE
NDITURES:

Current:

General government 26,235,306 3,461,685 29,295,867 8,660 13,183,170 72,184,688 Public safety 180,932,111 - 9,490,213 - 15,500,590 205,922,914 Public works 15,934,338 - 1,347,142 6,203,666 18,475,180 41,960,326 Library 10,558,356 - 104,048 - 2,099,998 12,762,402 Parks and recreation 3,907,364 - 1,293,138 - 3,006,550 8,207,052 Capital outlay 611,717 - 2, 393,407 20,950,609 2,171,692 26,127,425 Debt service:

Principal retirement - 1,675,000 - - 130,569 1,805,569 Interest and fiscal charges 15,980 176,338 - - 4,424,561 4,616,879 Total expenditures 238,195,172 5,313,023 43,923,815 27,162,935 58,992,310 373,587,255

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 48,201,179 1,867,069 742,376 (13,027,737) 30,143,438 67,926,325 OTHER FINANCING SOURCES (USES):

Transfers in - - 10,093 15,127,882 4,764,544 19,902,519 Transfers out (31,961,460) (389,348) - (584,022) (8,517,609) (41,452,439) Proceeds from sale of capital assets 6,095 - - 2,413,101 - 2,419,196 Total other financing sources (uses) (31,955,365) (389,348) 10,093 16,956,961 (3,753,065) (19,130,724) CHANGES IN FUND BALANCES 16,245,814 1,477,721 752,469 3,929,224 26,390,373 48,795,601 FUND BALANCES:

Beginning of year, as restated (Note 18) 114,611,305 84,528,870 1,845,441 23,609,830 232,236,038 456,831,484 End of year 130,857,119$ 86,006,591$ 2,597,910$ 27, 539,054$ 258,626,411$ 505 ,627,085$ Special Revenue Funds
Major Funds
City of Stockton
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

23 ATTACHMENT A
Net change in fund balances - Total Governmental Funds: 48,795,601$ Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlays (net of $11,395,296 in Internal Service Fund, net of $786,647 donated) 26,127,425 Donated capital assets 2,231,603
Capital asset disposals, net (2,630,347)
Depreciation expense (net of depreciation $4,415,749 reported in Internal Service Funds) (18,588,774) Repayment of principal, net of $199,890 in Internal Service Fund 1,805,569 40,598,563
Change in compensated absences (2,231,998)
306,208
Unavailable revenue - Others 6,025,886
Changes in deferred outflows, deferred inflows, and net pension liability (19,222,087) Changes in net position of governmental activities 83,217,649$ City of Stockton
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the Year Ended June 30, 2021
Change in accrued interest
Internal service funds are used by management to charge the costs of certain activities, such as central garage, equipment and insurance, to individual funds. The net revenue (expense) of internal service funds is reported with governmental activities. Excluding extraordinary items as a result of remeasurement of liabilities .

The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditure in governmental funds (net change):

Governmental funds report capital outlays as expenditures. Donated capital assets do not create or use financial resources, and are not reported in governmental funds. However, in the statement of activities, the cost/fair value of those assets are allocated over their estimated useful lives and reported as depreciation expense. Capital outlays, donated capital assets, capital asset disposals, loss from disposal of capital assets and depreciation expense are as follows:

Long-term debt (including refunding debt), net of bond premiums and discounts, provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets.

Repayment of principal (including bond refundings) and costs of issuance are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets, and the costs of issuance increase deferred charges in the statement of net assets. Long-term debt proceeds, bond premiums, discounts, repayment of principal, costs of issuance and bond refundings are as follows:

See accompanying Notes to the Basic Financial Statements.

24 ATTACHMENT A

25 ATTACHMENT A
Proprietary Fund Types
The City's major enterprise funds include:

Water Utility Enterprise Fund
Wastewater Utility Enterprise Fund
The City's nonmajor enterprise funds include:

Stormwater Utility Enterprise Fund
Parking Authority Enterprise Fund
Downtown Marina Enterprise Fund
Golf Courses Enterprise Fund
To account for resources and activities associated with the operations and maintenance of the Downtown Stockton Marina facilities.

To account for resources and activities associated with the improvement, operation and maintenance of the Swenson and Van Buskirk golf courses.

To account for activities associated with the acquisition or construction, operation and maintenance of off-street parking facilities, and operations related to the provision of services.

PROPRIETARY FUND FINANCIAL STATEMENTS
Proprietary funds focus on the determination of operating income, changes in net positions, financial position, and cash flows. There are two different types: enterprise funds and the internal service funds. Enterprise funds are used to report activities for which a fee is charged to external users for goods and services. Internal service funds may be used to report any activity that provides goods and services on a cost-reimbursement basis to other City funds, departments, or agencies of the primary government and its component units, or to other governments. The City's internal service funds include: General Liability Insurance, Workers' Compensation Insurance, Employee & Retiree Health Insurance, Retirement Benefits, Other Benefits and Insurance, Vehicle Fleet Equipment, Computer & Radio Equipment, and Other Equipment funds.

To account for activities associated with the acquisition or construction of water treatment facilities, production, distribution and transmission of potable water to users, and operations related to the provision of services.

To account for activities associated with the acquisition or construction, and operation and maintenance of wastewater facilities for collection, treatment, and disposal of wastewater, and operations related to the provision of services.

To account for activities associated with the acquisition or construction, and operation and maintenance of stormwater facilities for drainage and disposal of stormwater, and operations related to the provision of services.

See accompanying Notes to the Basic Financial Statements.

26 ATTACHMENT A
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
Current assets:

Cash and investments 88,552,645$ 163,170,744$ 9,954,416$ 3,228,691$ Receivables, net:

Interest 191,602 354,680 23,876 7,527 Accounts and other receivables 12,144,318 14,959,074 957,991 98 Loans to other funds - short-term - - - - Due from other governments, net 569,530 - - - Loans to other funds - - - - Inventory of supplies - 1,863,350 - - Deposits and advances - - - 84,935 Prepaids 1,100,417 243,327 52,835 - Total current assets 102,558,512 180,591,175 10,989,118 3,321,251 Noncurrent assets:

Restricted assets:

Cash and investments - - - - Cash and investments with fiscal agents 16 19,431,160 - 4,693,046 Loans to other funds - long-term - - - - Loans receivable - - - 190,000 Capital assets, net:

Nondepreciable 9,932,109 123,532,454 678,815 3,890,273 Depreciable, net 288,525,553 257,118,298 41,381,627 19,774,163 Tot
al noncurrent assets 298,457,678 400,081,912 42,060,442 28,547,482 Total assets 401,016,190 580,673,087 53,049,560 31,868,733 Unamortized loss on refunding of debt 12,716,370 1,393,644 - 444,560 Pension-related deferred outflows 706,546 1,660,749 160,702 - Total deferred outflows of resources 13,422,916 3,054,393 160,702 444,560 City of Stockton
Statement of Net Position
Proprietary Funds
June 30, 2021
Major Enterprise Funds Nonmajor Enterprise Funds
ASSETS

DEFERRED OUTFLOWS OF RESOURCES
See accompanying Notes to the Basic Financial Statements.

27 ATTACHMENT A
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
Current assets:

Cash and investments 292,828$ 188,362$ 265,387,686$ 151,008,971$ Receivables, net:

Interest 312 870 578,867 431,643 Accounts and other receivables 102,083 - 28,163,564 540,169 Loans to other funds - short-term - - - 1,896,562 Due from other governments, net - - 569,530 64,234 Advances to other funds - - - - Inventory of supplies - - 1,863,350 90,207 Deposits and advances - - 84,935 1,189,966 Prepaids 24,238 761 1,421,578 1,755,218 Total current assets 419,461 189,993 298,069,510 156,976,970 Noncurrent assets:

Restricted assets:

Cash and investments - - - 68,079,946 Cash and investments with fiscal agents - - 24,124,222 - Loans to other funds - long-term - - - 8,830,393 Loans receivable - - 190,000 - Capital assets, net:

Nondepreciable - 359,805 138,393,456 11,593,030 Depreciable, net 21,235,960 603,397 628,638,998 21,757,329 Total noncurrent assets 21,235,960 963, 202 791,346,676 110,260,698 Total assets 21,655,421 1,153,195 1,089,416,186 267,237,668 Unamortized loss on refunding of debt - - 14,554,574 - Pension-related deferred outflows - - 2,527,997 - Total deferred outflows of resources - - 17,082,571 -

DEFERRED OUTFLOWS OF RESOURCES
ASSETS
Proprietary Funds
Statement of Net Position (Continued)
City of Stockton
June 30, 2021
Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements.

28 ATTACHMENT A
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
Current liabilities:

Accounts payable 2,557,429 17,387,808 288,552 15,515
Accrued payroll 366,911 819,606 99,561 24,327 Loans to other funds - short-term - - - 629,842 Due to other governments 95,237 - - - Deposits and other liabilities 1,977,358 93,051 109,999 - Accrued interest 2,130,748 937,428 - 454,302 Capital lease obligation - - - - Compensated absences - current 409,061 603,370 11,277 17,128 Self-insurance claims and judgments - current - - - - Bonds payable - current 6,720,073 4,924,981 - 454,710 Total current liabilities 14,256,817 24,766,244 509,389 1,595,824 Noncurrent liabilities:

Compensated absences - long-term 289,672 254,449 5,175 3,049 Self-insurance claims and judgments - long-term - - - - Loans from other funds - long-term - - - 7,011,331 Certificates of participation - 167,498,864 - - Bonds payable 195,961,335 - - 29,282,846 Net pension liability 4,409,557 10,360,717 1,003,831 -
Total noncurrent liabilities 200,660,564 178,114,030 1,009,006 36,297,226 Total liabilities 214,917,381 202,880,274 1,518,395 37,893,050 Pension-related deferred inflows 349,155 1,021,155 35,058 - Total deferred inflows of resources 349,155 1,021,155 35,058 - Net investment in capital assets 108,492,624 209,620,551 42,060,442 (5,628,560) Restricted for capital projects 16 28,550,614 - 3,002,460 Restricted for debt service - 12,997,074 - 1,690,586 Restricted for pensions - - - - Unr
estricted (deficit) 90,679,930 128,657,812 9,596,367 (4,644,243) Total net position 199,172,570$ 379,826,051$ 51,656,809$ (5,579, 757)$

LIABILITIES

DEFERRED INFLOWS OF RESOURCES

NET POSITION
June 30, 2021
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
Major Enterprise Funds Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements.

29 ATTACHMENT A
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
Current liabilities:

Accounts payable 109,404 169,190 20,527,898 3,633,133 Accrued payroll - 1,596 1,312,001 453,675 Loans to other funds - short-term - - 629,842 486,720 Due to other governments - - 95,237 - Deposits and other liabilities 68,305 - 2,248,713 49,104 Accrued interest - - 3,522,478 24,358 Capital lease obligation - - - 206,486 Compensated absences - current - - 1,040,836 342,092 Self-insurance claims and judgments - current - - - 13,156,704 Bonds payable - current - - 12,099,764 - Total current liabilities 177,709 170,786 41,476,769 18,352,272 Noncurrent liabilities:

Compensated absences - long-term - - 552,345 264,713 Self-insurance claims and judgments - long-term - - - 53,158,922 Loans from other funds - long term - - 7,011,331 1,819,062 Certificates of participation - - 167,498,864 - Bonds payable 10,870,821 - 236,115,002 - Net pension liability - - 15,774,105 - To
tal noncurrent liabilities 10,870,821 - 426,951,647 55,242,697 Total liabilities 11,048,530 170,786 468,428,416 73,594,969 Pension-related deferred inflows - - 1,405,368 - Total deferred inflows of resources - - 1,405,368 - Net investment in capital assets 10,365,139 963,202 365,873,398 33,143,873 Restricted for capital projects - - 31,553,090 - Restricted for debt service - - 14,687,660 - Restricted for pensions - - - 68,079,946 Unres
tricted 241,752 19,207 224,550,825 92,418,880 Total net position 10,606,891$ 982,409$ 636,664,973$ 193,642,699$

NET POSITION

DEFERRED INFLOWS OF RESOURCES

LIABILITIES
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements.

30 ATTACHMENT A
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
OPERATING REVENUES:

Charges for services 55,905,249$ 72,997,043$ 5,852,978$ 3,335,310$ Miscellaneous 8,191,721 887,836 187,440 - Total operating revenues 64,096,970 73,884,879 6,040,418 3,335,310 OPERATING EXPENSES:

Operation and maintenance 18,915,326 35,428,117 2,414,391 2,463,522 General and administrative 4,373,070 9,321,027 2,676,632 543,437 Depreciation, and net of (amortization) 7,700,656 12,481,751 1,668,286 649,622 Purchased water 14,322,991 - - - Total operating expenses 45,312,043 57,230,895 6,759,309 3,656,581 OPERATING INCOME (LOSS) 18,784,927 16,653,984 (718,891) (321,271) NON-OPERATING REVENUES (EXPENSES):

Taxes - - - 1,253,674 Investment income:

Interest income (loss) 135,118 (94,354) 3,465 (6,216) Gain (loss) from disposal of capital assets - - - - Interest expense and fiscal charges (8,954,025) (3,892,902) - (1,338,813) Other non-operating revenues - - - - Total non-operating revenues (expenses) (8,818,907) (3,987,256) 3,465 (91,355)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 9,966,020 12,666,728 (715,426) (412,626) Capital contributions 7,371,911 4,521,840 - - D
eveloper contributions 587,071 342,694 439,138 - Transfers in - - - - Transfers out (242,181) (2,031,111) (50,138) - Total contributions and transfers 7,716,801 2,833,423 389,000 - CHANGES IN NET POSITION 17,682,821 15,500,151 (326,426) (412,626) NET POSITION:

Beginning of year 181,489,749 364,325,900 51,983,235 (5,167,131) End of year 199,172,570$ 379,826,051$ 51,656,809$ (5,579, 757)$ Major Enterprise Funds Nonmajor Enterprise Funds
City of Stockton
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

31 ATTACHMENT A
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
OPERATING REVENUES:

Charges for services 306,212$ -$ 138,396,792$ 148,535,726$ Miscellaneous 24,331 24,304 9,315,632 113,388 Total operating revenues 330,543 24,304 147,712,424 148,649,114 OPERATING EXPENSES:

Operation and maintenance 561,518 - 59,782,874 126,692,014 General and administrative 5,329 466,967 17,386,462 8,132,484 Depreciation and amortization 531,869 101,090 23,133,274 4,415,749 Purchased water - - 14,322,991 - Total operating expenses 1,098,716 568,057 114,625,601 139,240,247 OPERATING INCOME (LOSS) (768,173) (543,753) 33,086,823 9,408,867 NON-OPERATING REVENUES (EXPENSES):

Taxes - - 1,253,674 - Investment income:

Interest income (loss) (3,180) 22,163 56,996 6,275,759 Gain (loss) from disposal of capital assets - - - 358,648 Interest expense and fiscal charges - - (14,185,740) (62,488) Other non-operating revenues - - - 529,780 Total non-operating revenues (expenses) (3,180) 22,163 (12,875,070) 7,101,699

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (771,353) (521,590) 20,211,753 16,510,566 Capital contributions - - 11,893, 751 786,647 Developer contributions - - 1,368,903 - Transfers in 297,000 275,000 572,000 23,301,350 Transfers out - - (2,323,430) - Total contributions, transfers and special items 297,000 275,000 11,511,224 24,087,997 CHANGES IN NET POSITION (474,353) (246,590) 31,722,977 40,598,563 NET POSITION:

Beginning of year 11,081,244 1,228,999 604,941,996 153,044,136 End of year 10,606,891$ 982,409$ 636,664,973$ 193,642,699$ Nonmajor Enterprise Funds
City of Stockton
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

32 ATTACHMENT A
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 56,453,632$ 71,530,829$ 5,907,463$ 3,517,892$ Receipts for interfund services provided - - - - Payments to suppliers and employees (37,178,902) (38,048,425) (5,061,438) (3,128,999) Miscellaneous receipts 8,191,721 887,836 187,440 - Net cash provided by (used in) operating activities 27,466,451 34,370,240 1,033,465 388,893 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (242,181) (2,031,111) (50,138) - Loans to and from other funds - - - (620,418) Receipt of cash subsidies and federal grants - - 181,652 (12,234) Contribution to other funds 8,000 2,964,408 715,494 - Other non-operating revenues - - - - Proceeds from taxes - - - 1,253,674 Net cash provided by noncapital financing activities (234,181) 933,297 847,008 621,022

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 234,182 (1,603,019) (665,357) - Purchases of capital assets (4,199,596) (73,931,868) (821,991) - Capital contributions received 7,958,982 4,864,534 439,138 - Principal paid on debt (6,440,072) (4,724,980) - - Unamortized loss on refunding of debt and discount 721,388 480,285 - - Interest paid on debt (9,020,272) (3,959,486) - (1,356,967) Net cash (used in) capital and related financing activities (10,745,388) (78,874,534) (1,048,210) (1,356,967) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) 206,401 78,366 14,050 (1,661) Net cash provided by (used in) investing activities 206,401 78,366 14,050 (1,661) NET INCREASE IN CASH AND CASH EQUIVALENTS 16,693,283 (43,492,631) 846,313 (348,713) CASH AND CASH EQUIVALENTS:

Beginning of year 71,859,378 226,094,535 9,108,103 8,270,450 End of year 88,552,661$ 182,601,904$ 9,954,416$ 7,921,737$ City of Stockton
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Major Enterprise Funds Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements.

33 ATTACHMENT A
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users 215,670$ 2,025$ 137,627,511$ -$ Receipts for interfund services provided - - - 148,351,805 Payments to suppliers and employees (537,614) (397,714) (84,353,092) (134,631,110) Miscellaneous receipts 24,331 24,304 9,315,632 (1,081,715) Net cash provided by (used in) operating activities (297,613) (371,385) 62,590,051 12,638,980 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net 297,000 275,000 (1,751,430) 23,301,350 Due to and from other funds - (620,418) 714,077 Receipt of cash subsidies and federal grants 12 169,430 - Contribution to other funds 3,687,902 -
Other non-operating revenues - - 529,780 Proceeds from taxes - 1,253,674 - Net cash provided by noncapital financing activities 297,000 275,012 2,739,158 24,545,207

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets - - (2,034,194) 358,648 Purchases of capital assets - - (78,953,455) (13,681,637) Capital contributions received - - 13,262,654 786,647 Principal paid on debt - - (11,165,052) (199,890) Unamortized loss on refunding of debt - - 1,201,673 - Interest paid on debt - - (14,336,725) ( 71,621) Net cash (used in) capital and related financing activities - - (92,025,099) (12,807,853) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) (2,621) 18,538 313,073 6,450,037 Net cash provided by (used in) investing activities (2,621) 18,538 313,073 6,450,037 NET INCREASE IN CASH AND CASH EQUIVALENTS (3,234) (77,835) (26,382,817) 30,826,371 CASH AND CASH EQUIVALENTS:

Beginning of year 296,062 266,197 315,894,725 188,262,546 End of year 292,828$ 188,362$ 289,511,908$ 219,088,917$ City of Stockton
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements.

34 ATTACHMENT A
Water Wastewater Stormwater Parking
Utility Utility Utility Authority

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments 88,552,645$ 163,170,744$ 9,954,416$ 3,228,691$ Restricted assets:

Cash and investments - - - - Cash and investments with fiscal agents 16 19,431,160 - 4,693,046 Total cash and investments 88,552,661$ 182,601,904 9,954,416$ 7,921,737$

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

Operating income (loss) 18,784,927$ 16,653,984$ (718,891)$ (321,271)$ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 7,700,656 12,481,751 1,668,286 649,622 Changes in assets and liabilities:

Accounts receivables 548,383 (1,466,214) 54,485 182,582 Due from other funds - - - - Prepaid items (706,811) (259,744) (29,248) (31) Inventory of supplies - (82,645) - - Deposits and advances - - - (84,935) Accounts payable 811,865 7,780,775 209,348 13,933 Accrued payroll 6,472 56,048 17,915 5,406 Deposits and other liabilities 240,553 80,553 9,708 (62,808) Compensated absences 362,880 79,489 (26,626) 6,395 Self-insurance - claims and judgments - - - - Net pension liability (367,965) (1,446,190) (120,278) - Pension-related deferred outflows (26,926) 42,831 (7,062) - Pension-related deferred inflows 112,417 449,602 (24,172) - Net cash provided by (used for) operating activities 27,466,451$ 34,370,240$ 1,033,465$ 388,893$ NONCASH TRANSACTIONS:

Amortization of loss on refunding 721,388$ 480,285$ -$ (444,560)$ Capital contributions received 7,371,911 4,521,840 - - Major Enterprise Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
City of Stockton
See accompanying Notes to the Basic Financial Statements.

35 ATTACHMENT A
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION -
PROPRIETARY FUNDS:

Cash and investments 292,828$ 188,362$ 265,387,686$ 151,008,971$ Restricted assets:

Cash and investments - - - 68,079,946 Cash and investments with fiscal agents - - 24,124,222 - Total cash and investments 292,828$ 188,362$ 289,511,908$ 219,088,917$

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

Operating income (loss) (768,173)$ (543,753)$ 33,086,823$ 9,408,867$ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 531,869 101,090 23,133,274 4,415,749 Changes in assets and liabilities:

Accounts receivables (90,542) 2,025 (769,281) (139,534) Due from other funds - - (157,775) Prepaid items (2,201) (79) (998,114) 136,333 Inventory of supplies - - (82,645) (90,207) Deposits and advances - - (84,935) (424,032) Accounts payable (6,338) 68,374 8,877,957 521,124 Accrued payroll - 958 86,799 (45,187) Deposits and other liabilities 37,772 - 305,778 - Compensated absences - - 422,138 95,357 Self-insurance - claims and judgments - - - (1,081,715) Net pension liability - - (1,934,433) - Pension-related deferred outflows - - 8,843 - Pension-related deferred inflows - - 537,847 - Net cash provided by (used for) operating activities (297,613)$ (371,385)$ 62,590,051$ 12,638,980$ NONCASH TRANSACTIONS:

Amortization of loss on refunding -$ -$ 757,113$ -$ Capital contributions received - - 11,893,751 - Nonmajor Enterprise Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
City of Stockton
See accompanying Notes to the Basic Financial Statements.

36 ATTACHMENT A

37 ATTACHMENT A
Fiduciary Fund Types
Custodial Funds
Successor Agency to the Redevelopment Agency of the City of Stockton

FIDUCIARY FUND FINANCIAL STATEMENTS
The fiduciary funds are used to report assets held in a trustee or agency capacity for others and which, therefore, cannot be used to support the government's own programs. The financial activities of these funds are excluded from the entity-wide financial statements, but are presented in separate Fiduciary Funds financial statements. The fiduciary funds category includes custodial funds and private-purpose trust funds.

To account for land secured financing, developer area of benefit fees, pass-thru public fees on behalf of other entities, funds held in trust as security for development projects, and various community enhancement programs the City administers on behalf of other entities.

To account for a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency pursuant to the City Council actions taken on August 23, 2011. The activity of the Successor Agency is overseen by an Oversight Board comprised of individuals appointed by various government agencies and the City of Stockton as Successor Agency of the former Redevelopment Agency. The nature and significance of the relationship between the City and the Successor Agency is such that it would be misleading to exclude the Successor Agency from the City’s financial statements. The Successor Agency is presented herein in the City’s fiduciary funds as a private-purpose trust fund.

See accompanying Notes to the Basic Financial Statements.

38 ATTACHMENT A
Successor
Agency to the
Redevelopment
Agency
Custodial Private-Purpose
Funds Trust Fund
Cash and investments 25,865,890$ 12,060,920$
Cash and investments with fiscal agents 12,158,213 1,868,469 Receivables, net:

Interest 58,892 18,788
Accounts and other receivables 7,641,030 9,455,107 Capital assets:

Nondepreciable - 12,702,828 Depreciable, net - 12,531,950 Total assets 45,724,025 48,638,062
Accounts payable 2,314,335 966
Accrued payroll - 4,667
Due to other governments 2,727,931 -
Loans from the City - 10,561,020 Accrued interest - 1,245,646 Bonds payable - current - 4,290,557 Bonds payable - noncurrent - 91,269,040 Pollution remediation - 275,000 Total liabilities 5,042,266 107,646,896
Held in Trust - (59,008,834) Restricted for individual, organization,
and other government 40,681,759 -
Total net positions 40,681,759$ (59,008,834)$

NET POSITIONS
City of Stockton
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
ASSETS

LIABILITIES
See accompanying Notes to the Basic Financial Statements.

39 ATTACHMENT A
Successor
Agency to the
Redevelopment
Fiduciary Agency
Custodial Private-Purpose
Funds Trust Fund
ADDITIONS:

Property tax 7,499,663$ 12,724,077$
Use of money and property - 6,532 Investment Income (loss) 278,059 (12,967)
Debt proceeds 14,270,860 -
Security deposits 2,296,727 -
Total additions 24,345,309 12,717,642
DEDUCTIONS:

General government 330,749 205,001
Public Works 18,187,457 -
Debt obligations 9,663,343 2,025,807
Depreciation - 603,274
Miscellaneous - 4,783,118
Total deductions 28,181,549 7,617,200
CHANGE IN NET POSITION (3,836,240) 5,100,442
NET POSITION (DEFICIT):

Beginning of year, as restated (Note 18) 44,517,999 (64,109,276) End of year 40,681,759$ (59,008,834)$
City of Stockton
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

40 ATTACHMENT A

41 ATTACHMENT A

NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT A

ATTACHMENT A
City of Stockton
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies ...................................................................................... 44 A. Financ
ial Reporting Entity
B. Basis of Presentation, Measurement Focus and Basis of Accounting C. Deferred Outflows/Inflows of Resources
D. Encumbrances
E. Cash, Cash Equivalents, and Investments
F. Restricted Cash and Investments
G. Receivables
H. Interfund Loans and Advances
I. Inventory of Supplies
J. Capital Assets
K. Capital Contributions
L. Accrued Payroll and Related Liabilities
M. Accrued Compensated Absences
N. Long-Term Debt
O. Pensions
P. Net Position
Q. Fund Balances
R. Property Taxes
S. Use of Estimates
T. Implementation of Governmental Accounting Standards Board Statements Note 2 – Cash, Cash Equivalents and Investments............................................................................................. 57 A. Cash D
eposits
B. Authorized Investments
C. Investments in Local Agency Investment Fund
D. Investments in Repurchase Agreements and Money Market Funds as a Sweep Instrument E. Fair Value of Investments
F. Risk Disclosures
G. Restricted Cash and Investments
Note 3 – Interfund Transactions .......................................................................................................................... 66 A. Loans T
o/From Other Funds
B. Transfers
Note 4 – Successor Agency – Loans from City, Net ............................................................................................ 68 Note 5 – Loans to Property Owners ..................................................................................................................... 69 Note 6 – Capital Assets .......................................................................................................................................... 70 A. Gove
rnment-Wide Financial Statements
B. Governmental Activities
C. Business-Type Activities
D. Fiduciary Fund Activities
42 ATTACHMENT A
City of Stockton
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
Note 7 – Long-Term Liabilities ............................................................................................................................ 74 A. Gove
rnmental Activities
B. Business-Type Activities
C. Fiduciary Fund Activities
Note 8 – Accrued Compensated Absences ........................................................................................................... 87 Note 9 – Unamortized Loss on Refunding ........................................................................................................... 87 Note 10 – Fund Balances ....................................................................................................................................... 88 Note 11 – Retirement Plans .................................................................................................................................. 89 A. CalPE
RS Retirement Plan
B. PARS Enhancement Plan
C. Retirement Benefits Fund (Section 115 Trust)
Note 12 – Claims Payable ..................................................................................................................................... 100 Note 13 – Pollution Remediation Obligations .....................................................................................................102 Note 14 – Individual Fund Disclosures ................................................................................................................ 103 Note 15 – Commitments and Contingencies ....................................................................................................... 104 Note 16 – Restricted Net Position ......................................................................................................................... 106 Note 17 – Subsequent Events ................................................................................................................................ 106 Note 18 – Prior Period Adjustments .................................................................................................................... 107 43 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies

The basic financial statements of the City of Stockton, California (the “City”) have been prepared in conformity with Generally Accepted Accounting Principles of the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards in the United States . The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity

The City was incorporated on July 25, 1850, under the general laws of the State of California. Under the charter adopted in 1923, the City operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety, community services, engineering services, planning services, public works, general administrative services, and capital improvements.

These basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majo rity of that organization’s governing body and either the City can impose its will on that organization, or there is a potential for that organization to provide financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. Blended component units, although legally separate entities are, in substance, part of the City’s operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The following entities are reported component units:

Fiduciary Component Unit – Successor Agency

The Successor Agency to the Redevelopment Agency of the City of Stockton (“Successor Agency”) is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency under City Council action taken on August 23, 2011. The activity of the Successor Agency is overseen by an Oversight Board comprised of individuals appointed by various government agencies and the City of Stockton as Successor Agency of the former Redevelopment Agency. The nature and significance of the relationship between the City and the Successor Agency are such that it would be misleading to exclude the Successor Agency from the City’s financial statements. The Successor Agency is presented herein in the Ci ty’s fiduciary funds as a private-purpose trust fund for the fiscal year ended June 30, 2021.

44 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

A. Financial Reporting Entity (Continued)

The Stockton Public Financing Authority (the “SPFA”)

The SPFA was created in June 1990 and carries out bonded debt and lease financing for the City . The governing body of the SPFA is comprised of City Council members. The SPFA is authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and to refinance outstanding obligations of the City. The SPFA does not prepare separate financial statements.

Excluded Agencies

A governmental agency in which the City participates is the San Joaquin Area Flood Control Agency (“SJAFCA”) which is jointly governed by the City and the County of San Joaquin ( “County”). The City retains neither an on- going financial interest in nor obligation to SJAFCA. Therefore financial information for the SJAFCA is not included in the accompanying financial statements.

An additional governmental agency in which the City participates is the San Joaquin County Regional Fire Dispatch Joint Powers Authority (“SJCRFDA”) consequent to City Council approval of an operating agreement between the SJCRFDA and the City of Stockton. In addition to dispatch services, the City will provide financial and administrative support services to the SJCRFDA. The financial information for the SJCRFDA is not included in the accompanying financial statements. However, the City’s cost and revenu es from providing emergency communications services are tracked and reported in the General Fund. The SJCRFDA was dissolved effective 6/30/21.

B. Basis of Presentation, Measurement Focus, and Basis of Accounting

The accounts of the City are organized by funds. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance or net position, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance- related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

The City’s financial position and results of operations are presented from two perspectives in the following two sets of financial statements:

Government-Wide Financial Statements

The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Change in Net Position. These statements present summaries of governmental activities and business -type activities for the City, the primary government, accompanied by a total column. Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

45 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued)

Government-Wide Financial Statements (Continued)

The statement of activities demonstrates the degree to which the direct expenses of a given function or programs are offset by program revenues. Direct expenses are those expenses specifically associated with a service, program, or department and, are identifiable with a specific function or program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Fiduciary funds are excluded from the government -wide financial statements. Major individual governmental funds and enterprise funds are reported as separate columns in the fund financial statements with nonmajor funds aggregated in and combined with the major funds.

The Government-Wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long- term liabilities are included in the accompanying Statement of Net Position . The Statement of Activities presents the C hange in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:

• Charges for services
• Operating grants and contributions
• Capital grants and contributions

Certain eliminations have been made for inter-fund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business- type activities, which are presented as internal balances and netted in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, transactions between governmental and business-type activities have not been eliminated. The following inter-fund activities have been eliminated:

• Loans to, Loans from other funds
• Transfers in, Transfers out

46 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued) Governmental
Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Change in Fund Balances for all major
governmental funds and nonmajor funds aggregated. An
accompanying schedule is presented to reconcile and ex plain the differences in fund balances as presented in these s
tatements to the net position presented in the government-wide financial statements.

All governmental fun
ds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the
Balance Sheet. The Statement of Revenues, Expenditures, and Change in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing use) in fund balances.

Revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expenditures of the current period. Revenues are considered to be available when they are collectible within the current period as soon enough after that
to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary
revenue sources, which have been treated as susceptible to accrual b y the City, are property tax, sales tax, intergovernmental revenues
, and other taxes.

Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as exp enditures to the extent they have matured or been earned
. Governmental capital asset acquisitions are reported as expenditures in governmental funds as capital outlay. Proceeds of
governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Revenues and expenditures not meeting recognition criteria are treated as deferred inflows or outflows (Note 1C).

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to
explain the differences.

The City reports the
following major governmental funds:
• General Fund
To account for resources not accounted for in another fund. The General Fund is the City's main operating fund reflecting transactions related to municipal governmental services supported by taxes, intergovernmental revenues, charges for services and other governmental type revenues. • Federal
Housing Grants Special Revenue Fund
To account for federal grant programs and other resources that provide for development of a viable urban community by providing a suitable living environment, loans to non-profit housing developers to acquire and rehabilitate abandoned and foreclose homes and providing affordable housing assistance to qualified low- and moderate-income households. This fund includes the City’s annual federal funding from the Community Development Block Grant, Community Rehabilitation Loan program, federal revolving loan program, revitalization
activities in the designated Urban Development Action Grant area, Housing and Urban Development (HUD) Section 108, HOME Housing grants and loans, and Neighborhood Stabilization Loan Program (NSP Funds).
47 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued)

Governmental Fund Financial Statements (Continued)

• Special Grants Special Revenue Fund
To account for one-time resources received through the federal CARES and American Rescue Plan Act and in addition to some comparatively smaller grants from federal and state governments to support public safety and other community programs which are not ot herwise accounted for in other special revenue funds.

• Capital Improvement Capital Projects Fund
To account for the acquisition, construction and improvement of general governmental capital facilities as required by City Council action or state law in which the projects are financed by grants, lease proceeds, and transfers from other City governmental funds.

Proprietary Fund Financial Statements

Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

Proprietary funds are accounted for using the “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Change in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The City reports the following major enterprise funds:

• Water Utility Enterprise Fund
To account for activities associated with the acquisition or construction of water treatment facilities, production, distribution and transmission of potable water to users, and operations related to the provision of services.

• Wastewater Utility Enterprise Fund
To account for activities associated with the acquisition or construction, and operation and maintenance of wastewater facilities for the collection, treatment, and disposal of wastewater, and operations related to the provision of services.

48 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued)

Proprietary Fund Financial Statements (Continued)

A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government -wide financial statements. Internal service funds are a type of proprietary fund used to report the provision of goods and services to other funds, departments, or agencies of the primary government and its component units on a cost-reimbursement basis. The City’s internal service funds include eight individual funds which provide services directly to other City funds.

• The Internal Service Funds of the City are the General Liability Insurance, Workers’ Compensation Insurance, Health Benefits, Retirement Benefits, Other Benefits & Insurance, Vehicle Fleet Eq uipment, Computer and Radio Equipment, and Other Equipment funds.

Fiduciary Fund Financial Statements

Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent agency funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting. The City reports the following fiduciary funds:

The Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Stockton Redevelopment Agency.

The Custodial Funds account for resources held by the City in custodial capacity for collections to bondholders and for programs that the City administers on behalf of other governmental and private sector entities and organizations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

49 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

C. Deferred Outflows/Inflows of Resources

In accordance with GASB Statement No. 63, Fina ncial Reporting of Deferred Out flows of Resources, Deferred Inflows of Resources, and Net Position, the Statement of Net position report separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time.

D. Encumbrances

Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation, is employed as an extension of budgetary controls.

E. Cash, Cash Equivalents, and Investments

The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents. The statement of cash flows requires presentation of “cash and cash equivalents.” For the statement of cash flows, the City considers all proprietary fund pooled cash and investments as “cash and cash equivalents,” including restricted cash held by fiscal agents for debt service and capital projects.

The City participates in an external investment pool managed by the State of California (State), the Local Agency Investment Fund (LAIF). The City records its investment in LAIF at fair value based on information obtained from the State on the holdings in the pool.

Investments are recorded at fair value by GASB Statement No. 72, Fair Value Measurement and Application .

Accordingly, the change in fair value of investments is recognized as an increase or decrease in investment assets and investment income. Investment income consists of interest income, dividend income, and recognized gains or losses on investments. Money market investments and certain guaranteed investment contracts are carried at cost.

Highly liquid market investments with maturities of one year or less at the time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City allocates the fair value adjustment for unrealized gains and losses at June 30 of each year. Interest earnings on investments are allocated to the individual pooled funds quarterly based on each fund’s average quarterly pooled cash and investments balances. The City reported its investments a t fair value, and the unrealized gains on investments amounted to $16,893,214 for the fiscal year ended June 30, 2021.

Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas are presented in the footnotes:
• Interest Rate Risk
• Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
• Foreign Currency Risk
50 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

F. Restricted Cash and Investments

Restricted cash and investments consist of cash and investments held by fiscal agents that are restricted due to limitations on their use by bond covenants or cash or investments with donor limitations. Fiscal agents acti ng on behalf of the bond investors hold investments arising from the proceeds of long-term debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of participation or tax allocation bonds and have been invested as permitted by specific State statutes or applicable City ordinance, resolution or bond indenture. Cash held in the Water and Wastewater Rate Stabilization Fund w as established under the issuance of bonds in 2009 and 2014, respectively.

G. Receivables

Revenues are recorded when received in cash, except revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are sales tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services.

Federal and State grants are considered receivable and accrued as revenue when all eligibility requirements have been met on the accrual basis of accounting in the government -wide statement of net positions. The amount recognized as revenue under the modi fied accrual basis of accounting in the governmental funds is limited to the amount that is deemed measurable and available.

Long-term loans receivable, which consist of the principal amount of the loan plus the accrued borrower’s deferred interest is reported in the governmental fund statements and classified as nonspendable fund balance as resources are not available for expenditure. Long- term loans receivable reported in the governmental activities on the government-wide statement of net position as it is recorded on an accrual basis at its net realizable value based on an estimate of uncollectible amounts for loan losses.

Billed but not collected and unbilled utility revenue earned is recognized as revenue and accounts receivable in the enterprise funds.

H. Interfund Loans and Advances

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of inter-fund loans) or “loans to/from other funds” (i.e., the non- current portion of inter -fund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”

Management has determined that there are some inter-fund balances which may or may not be repaid within a reasonable period. U.S. GAAP permits the reporting of inter -fund balances such as inter-fund loans and advances only when repayment is expected within a reasonable period. However, City policy does not permit the elimination of inter-fund balances without City Council approval. Accordingly, inter-fund balances, which are not expected to be repaid within a reasonable period or not at all, have been offset by an allowance for uncollectible advances in both the borrowing and the lending funds.
51 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

I. Inventory of Supplies

Inventories consist of expendable supplies held for consumption. Inventories are valued at weighted average cost using the first-in-first-out basis. Inventories of all funds are recorded as expenditures/expenses when consumed rather than purchased. Inventory of supplies is recorded in the Wastewater Fund, for the City’s Water, Wastewater, and Stormwater Enterprise Funds which operates as a central store for all of the City’s utilities.

J. Capital Assets

Capital assets are valued at historical cost or estimated historical cost if the actual historical cost was not available.

Donated capital assets are valued at their estimated fair market value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5,000 for equipment and works of art; $10,000 for land, buildings, improvements and intangible assets; $50,000 for infrastructure, all of which must have an estimated useful life more than one year. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings and structures 30-50 years
Improvements other than buildings 20-30 years
Machinery and equipment 3-30 years
Infrastructure 30-100 years

Major outlays for capital assets are capitalized as projects progress and once constructed begin depreciation. Repairs and maintenance costs are expensed. Interest accrued during capital assets construction, if any, is capitalized for the business-type funds as part of the asset cost.

K. Capital Contributions

Capital contributions are comprised of cash and assets donated from developers. Connection fees are reported as capital contributions in the Water Utility and Wastewater Utility enterprise funds.

L. Accrued Payroll and Related Liabilities

The City is on a semi-monthly payroll period, and employees are paid seven calendar days after the end of the payroll periods ending on the 15th and the end of the month or the last working day before that date. As of June 30, 2021, the payroll accrual is recorded in the respective funds when the related liability is incurred.

M. Accrued Compensated Absences

By negotiated labor agreements, employees accumulate earned, but unused vacation, other compensated leave, and sick leave pay benefits. Employees were allowed to apply 100% of accrued sick leave hours for additional California Public Employees’ Retirement System (“CalPERS”) service credit upon retirement depending upon bargaining unit and date of hire.

For employees separating from service after February 17, 2012, and before June 30, 2015, vacation payouts are now paid in annual installments on the separation date equal to the greater of $10,000 or 1/3 of the emplo yee's accrued balance until paid in full and sick leave accruals are no longer paid out. For those employees separating from service after July 1, 2013, they receive their full vacation payout.

52 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

M. Accrued Compensated Absence (Continued)

After subtracting the sick leave balance equivalent of one full year of service credit (2080 hours), which may be applied to CalPERS service credit, any sick leave balance remaining upon separation shall be paid at a specific percentage of the cash value to employees who have remained in City service until the dates specified in the labor agreements.

Government-Wide Financial Statements

For governmental and business-type activities, compensated absences are recorded as expenses when earned.

Fund Financial Statements

For governmental funds, compensated absences are recorded as expenditures in the year paid. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund.

N. Long-Term Debt

In the government -wide and proprietary fund financial statements, long -term debt and other long- term financial obligations are reported as liabilities.

Before July 1, 2013, bond premiums and discounts, as well as issuance costs, are amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable premium or discount except for insurance prepaid bond insurance premiums.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, in the year of issuance. The face amount of the 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. The differences between the government -wide and fund financial statements are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position.

O. Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the net fiduciary position of the City’s CalPERS plans (Plans) and additions to/deductions from the P lans’ fiduciary net position have been determined on the same basis as CalPERS report them. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable by benefit terms. Investments are reported at fair value.

CALPERS
Valuation Date June 30, 2019
M easurement Date June 30, 2020
M easurement Period July 1, 2019 to June 30, 2020
PARS
Valuation Date June 30, 2019
M easurement Date June 30, 2021
M easurement Period July 1, 2020 to June 30, 2021
53 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

O. Pensions (Continued)

The following timeframes are used for pension reporting:

Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss.

P. Net Position

In governmental-wide and proprietary fund financial statements, Net Position is categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and include deferred inflows and outflows.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of the net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of the net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to first spend the restricted net position.

Q. Fund Balances

For governmental fund financial statements, fund balances are categorized as follows:

Nonspendable – Amounts that cannot be spent because they are (1) not in spendable form , such as prepaid items, inventories and long-term receivables for which the payment of proceeds are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to be maintained intact.

Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The City has legislative restrictions on amoun ts collected and reported in the City’s various governmental funds. As a result, these restrictions have been classified as restricted for community development, debt service reserve, general government, housing projects/loans, libraries and arts, parks and recreation, public safety, public services, redevelopment projects, solid waste/recycling and streets, transit and traffic.

Committed – This amount indicates the portion of fund balances which can only be used for specific purposes under formal resolution or ordinance of the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally. 54 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

Q. Fund Balances (Continued)

Assigned – Amounts that have been allocated by action of an official authorized by the Stockton City Council in which the City’s intent is to use the funds for a specific purpose. The City considers this level of authority to be the City Manager.

Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them. If restrictions exceed available resources at the end of the year, the deficit amounts are reported and classified as unassigned.

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is first to expend restricted fund balances, then unrestricted fund balances as they are needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned depending on the nature of the expenditure

R. Property Taxes

Property taxes are levied on October 1 and are payable by property owners in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is January 1. The County of San Joaquin, California (“County”) bills and collects property taxes and remits them to the City according to a payment schedule established by the County. The County generally operates under the Teeter Plan, whereby the County pays the City 100% of the taxes levied. The County assumes responsibility for collecting any delinquent amounts and upon collection retains the penalty and interest portion of those amounts. Therefore, no allowance for doubtful accounts is considered necessary.

The County is permitted by State law to levy taxes at 1% of full market value (at the time of purchase) and can increase the property tax rate no more than 2% per year or the current CPI, whichever is less. The City receives a share of this basic tax levy proportionate to what it received during the years 1980-1981.

Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 90 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected.

S. Use of Estimates

The preparation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from these estimates and assumptions.
55 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 1 – Summary of Significant Accounting Policies (Continued)

T. Implementation of New GASB Pronouncements

GASB Statement No. 84 Fiduciary Activities. This statement establishes standards relating accounting and financial reporting for identifying and financial reporting of fiduciary activities. Those provisions are effective for reporting periods beginning after December 15, 2019, as amended by GASB Statement No. 95. Application of this statement was effective starting in fiscal year ending June 30, 2021. See Note 18 for details.

GASB Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation of this statement. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2021.

56 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments

The following is a summary of cash, cash equivalents, and investments, including restricted cash and investments on June 30, 2021:

A. Cash Deposits

The carrying amount of the City’s pooled cash deposits was $93,487,269 at June 30, 2021. Bank balances before reconciling items were $ 100,374,025 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the Fund’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.

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

Deposits:

Cash on Hand 16,897$
Deman
d Deposits 262,350,845
Total Deposits 262,367,742
Investments 691,568,706
Total Cash and Investments 953,936,448$
Presented in the government-wide statement of net position:

Cash and Investments 808,202,487$
Restricted Cash and Investments 93,780,469
Presented in the statement of fiduciary net position:

Cash and Investments 37,926,810
Cash and investments with fiscal agents 14,026,682
Total Cash and Investments 953,936,448$
57 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

B. Authorized Investments

Investments Authorized by the California Government Code and 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 restr ictive. The table also identifies certain provisions of the California Government Code or the City’s investment policy, which are more restrictive to address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the City.

Maximum Minimum
Maximum in Credi t
Authorized Investment Type Maturity Portfoli o Quality
Securities of the U.S. Government or its agencies:

U.S. Treasury Bonds, Notes and Bills 10 Years** No Limit N/A State of California Obligations 5 Years No Limit N/A
49 other States Obligations 5 Years No Limit N/A
California Non Stockton Local Agency Obligations 5 Years No Limit N/A U.S. Agency and U.S. Government sponsored
Enterprise Securities 10 Years** No Limit N /A
City of Stockton Obligations 5 Years* None None
Negotiable Certificates of Deposit 5 Years* 30% AA
Time Certificates of Deposit 5 Years 30% N/A
Bankers' Acceptances 180 Days 40% N/A
Commercial Paper 270 Days 25% A1, P1, F-1
Medium-Term Corporate Notes 5 Years 30% A
California Local Agency Investment Fund
- Investments made in County or other types of investment pools require due diligence
Upon
Demand
$65,000,000
per account N/A
California Asset Management Program Upon Demand No Limit*** N/A**** Repur
chase Agreements 1 year None N/A
Reverse Repurchase Agreements 92 days 20% N/A
- If the City invests in Repurchase Agreements, a Master Repurchase Agreement is required
Demand Accounts - Insured/Collateralized Medium Term Notes N/A No Limit N/A Mutual Funds
SEC registered Money Market Funds limited to a percentage of the City's surplus as narrowly defined in the California Governme
nt Code Section 53601 et seq. N/A 20% AAA
*
** Securities with term to maturity greater than 5 years shall not exceed 15% of the total portfolio value. *** Inves
tments by any single agency may make up no more than 10% of pool holdings ****Pool composition restricted by CSA 53601.

Limited to 5 years, except per mits investment in variable rate demand obligations (VRDO) that are City obligations up to 10 years maturity, as allowed under IRS and SEC rulings. VRDO investments are limited to 15% of the portfolio.
58 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

B. Authorized Investments (Continued)

Investments Authorized by Debt Agreements

Investments of debt proceeds held by the City’s bond trustee are governed by provisions of the debt agreement, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Minimum Maximum Maximum
Maximum Credit in Investment
Authorized Investment Type Maturity Quality Portfolio In One Issuer
Repurchase Agreements 30 days Top Four Rating
Categories
No Limit No Limit
U.S. Treasury Bonds, Notes and Bills No Limit N/A No Limit No Limit U.S. Agency and U.S. Government
Sponsored No Limit No Limit No Limit No Limit
Enterprise Securities
State Obligations No Limit Not lower than
their bond rating
No Limit No Limit
Commercial Paper 270 days A-1+ No Limit No Limit
Negotiable Certificates of Deposit No Limit N/A No Limit No Limit Time Certificates of Deposit No Limit N/A No Limit No Limit Corporate Notes and Bonds No Limit Not lower than
their bond rating
No Limit No Limit
Guaranteed Investment Contracts No Limit Not lower than their bond rating
No Limit No Limit
Shares of Beneficial Interest No Limit Top Rating
Category
No Limit No Limit
Money Market Mutual Funds No Limit AAm 20% No Limit
Bankers' Acceptances 365 days A-1+ 30% 30%
Municipal Bonds No Limit AAA No Limit No Limit
California Local Agency Investment Fund
(LAIF)
Upon
Demand
N/A $65,000,000 $65,000,000
California Asset Management Program Upon
Demand
N/A No Limit* No Limit*
Investment Agreements No Limit AA- No Limit No Limit
*Pool is constrained by Code 53601 as to % that the pool must abide by 59 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

C. Investments in Local Agency Investment Fund

The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF included a portion of pool funds invested in structured notes and asset-backed securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from mortgages (such as Collateralized mortgage obligations) or credit card receivables.

As of June 30, 2021, the City had $75,000,000 invested in LAIF, which had invested 2.31% of the Pool investment funds in medium-term and short-term structured notes as well as asset-backed securities. The face value of the City’s position in the pool is the same as the value of the pool shares.

D. Investments in California Asset Management Program

The City is a participant in CAMP which is a California Joint Powers Authority ("JPA") established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). Structured Notes and Asset Backed Securities are not permitted under CAMP’s current investment policy.

As of June 30, 2021, the City had $81,837 invested in CAMP, which had invested 16.2% of the Pool investment funds in medium-term and short-term structured notes or asset backed securities. The face value of the City’s position in the pool is the same as the value of the pool shares.

E. Fair Value of Investments

The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows:

• Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than quoted market prices; and, • Level 3: Unobservable inputs.

60 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

E. Fair Value of Investments (Continued)

At June 30, 2021, the City had the following recurring fair value measurements.

Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities.

Debt and equity securities classified in Level 2 are valued using the following approaches:

• U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active;
• Medium term notes: quoted prices for similar securities in active markets; • Local Agency Investment Fund: application of the June 30, 2021, fair value factor, as calculated, to the City’s average daily balance in the Fund; and
• Asset-backed securities: recent appraisals of the asset value.

June 30, 2021
U. S. Agencies 176,240,219$ -$ 176,240,219$ -$ U. S
. Treasuries 164,233,921 164,233,921 - - Medium term notes 111,753,501 - 111,753,501 - Supranationals 3,729,259 - 3,729,259 - Municipal Bonds 17,159,354 - 17,159,354 Federal Agency CM Os 13,949,443 - 13,949,443 - Negotiable CD 30,195,413 - 30,195,413 - Asset backed securities 21,968,123 - 21,968,123 - Cash - PARS 115 Trust 17,944 - 17,944 - Equity Mutual Fund- PARS 115 Trust 23,963,391 - 23,963,391 - Fixed Income MutuaL Fund- PARS 115 Trust 49,996,333 - 49,996,333 - Idle Funds in Reserve Portfolio 2,253,315 - 2,253,315 - Total investments by fair value level 615,460,216 164,233,921$ 451,226,295$ -$ Investments exempt from fair value measurement categorizations:

Local Agency Investment Fund 75,000,000
California Asset Management Program (CAMP) 81,837
Money Market Funds (attributable to 115 Trust) 1,026,653 Total investments exempt from fair value measurement 76,108,490 691,568,706$
L ev el 1 L ev el 2 L ev el 3
61 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

F. Risk Disclosures

Interest Rate Risk

As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. The exceptions to this policy are that U.S.

Treasury or U.S. Agency securities may be invested in greater than five years and investment in variable rate obligations of the City is permissible when allowed by the IRS and SEC. Investments maturing beyond a five-year horizon should not exceed fifteen percent (15%) of the total portfolio value at any given time. The maturity of investments is evaluated before purchase depending on liquidity needs.

Information about the sensitivity of the fair values of the City ’s investments (including investments held by fiscal agents) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date.

Investment Maturities
Investment Type Fair Value 1 year or less 1-3 years 3-5 years 5 years
or more
U.S. Agencies 176,240,219$ -$ 87,345,411$ 88,894,808$ - $ U
.S. Treasuries 164,233,921 - 64,730,834 99,503,087 - Medium Term (Corporate) Notes 111,753,501 36,142,426 32,753,433 42,857,642 - Supranationals 3,729,259 3,729,259 - - Municipal Bonds 17,159,354 - 4,598,857 12,560,497 - Federal Agency CM Os 13,949,443 5,501,804 7,326,201 1,121,438 - Local Agency Investment Fund 75,000,000 75,000,000 - - - Capital Asset M anagement Program 81,837 81,837 - - - Money Market Funds (attributable to 115 Trust) 1,026,653 1,026,653 - - - Negotiable CD 30,195,413 4,868,521 25,326,892 - - Asset Backed Securities 21,968,123 - 14,072,172 7,895,951 - Cash - PARS 115 Trust 17,944 17,944 - - - Equity Mutual Fund- PARS 115 Trust 23,963,391 23,963,391 - - - Fixed Income Mutual Fund- PARS 115 Trust 49,996,333 49,996,333 - - - Idle Funds in Reserve Portfolio 2,253,315 2,253,315 - - - Total 691,568,706$ 198,852,224$ 239,883,058$ 252,833,423$ - $ Allocation by percentage 100% 29% 35% 37% - %
62 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

F. Risk Disclosure (Continued)

Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. It is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the actual rating as of June 30, 20 21, for each investment type as provided by Standard and Poor’s investment rating system:

AAA/AAAm AA / AA+ / AA- A / A+/ A- A-1+ BBB+ Total
Held by the City and its Component Units:

U. S. Agencies:

Non-callable -$ 13,949,442$ -$ -$ -$ 13,949,442$ Medium term notes:

Non-callable 6,695,469 196,959,021 42,997,393 4,868,522 6,767,276 258,287,681 Callable 5,724,939 33,814,190 33,542,539 - 7,708,397 80,790,065 Asset Backed Securities: 21,968,123 - - - - 21,968,123 Money Market Funds (attributable to 115 Trust): 1,026,653 - - - - 1,026,653 Total 35,415,185$ 244,722,653$ 76,539,932$ 4,868,522$ 14,475,673$ 376,021,964$ Not rated or ex em pt from rating disclosure:

Local Agency Investm ent Fund 75,000,000
California Asset Management Program 81,837
U. S. Treasuries 164,233,921
Section 115 Trust Mutual Funds (not rated) 73,959,724
Cash Held in 115 Trust 17,944
Idle Funds in Reserve Portfolio 2,253,315
Total Investm ents 691,568,706$
Investment Type
63 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

F. Risk Disclosure (Continued)

Credit Risk (Continued)

The City's portfolio manager utilized ratings of S&P in compiling the previous table. In August 2011, S&P took an extraordinary stance of downgrading the debt of the United States and numerous agencies whose debt it stands behind. Moody's and Fitch only took moves to lower the outlook on U.S. debt while still maintaining the AAA ratings on these entities. In March 2021, S&P affirmed the AA+ rating with a stable outlook that is still in place today. Moody's affirmed their AAA rating with stable outlook in October 5, 2021, and Fitch affirmed the AAA rating and brought the outlook to stable on July 2021.

Custodial Credit Risk

For an investment, custodial credit risk refers to the event in which the custodial bank (outside party) in possession of an investment security fails to supply the value of investments or collateral securities to the City upon demand. All securities, except the money market mutual funds and LAIF, are held by a third-party custodian, US Bank. US Bank is a registered member of the Federal Reserve Bank. The securities held by US bank are in the street name with a customer number assigned to the City that identifies ownership.

Concentration Credit Risk

The City’s investment policy regarding the amount that can be invested in any one issuer is stipulated by the California Government Code. Concentrations of 5.0% or more in investments in any one issuer, held by individual funds in the securities of issuers other than U.S. Treasury securities, mutual funds, and external investment pools are required to be disclosed.

At June 30, 2021, the City’s Pooled investments that represent a concentration in the securities of any individual issuers, other than U. S. Treasury securities or mutual funds, are set forth below:

Issuer Investment Type
Reported
Amount Total Holdings
Held by City and its Component Units: $ 691,568,706 Federal Home Loan Mortgage Company Federal Agency Securities 56,917,559$ 8.23% Federal National M ortgage Association Federal Agency Securities 111,057,328$ 16.06% 64 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 2 – Cash, Cash Equivalents and Investments (Continued)

G. Restricted Cash and Investments

Certain proceeds of revenue bonds and other long-term liabilities are classified as restricted cash and investments on the Statement of Net Position as their use is limited by applicable indentures or covenants. Covenants provide that these funds, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be invested by the ordinances, resolutions or indentures specifying the types of investments its trustees or fiscal agents may require. The ordinances, resolutions, and indentures are more restrictive than the City’s investment policy. Restricted cash and investments of the City are primary for the construction or acquisition of facilities, and reserves for payment of debt service as required by the bond indentures.

The City has a reserve policy governing the establishment of Rate Stabilization Fund for its Water, Wastewater, and Stormwater Funds. These reserves are to ease future revenue fluctuations, where revenues are interrupted or otherwise insufficient to offset the operating expenditures and to minimize the impact of rate increases. The City has established a Rate Stabilization Fund in the Water Fund in connection with the issuance of its 2010 Variable Rate Demand Water Revenue Bonds and the Wastewater Fund in connection with the 2014 Wastewater Refunding Bonds. The City use money on deposit in the Rate Stabilization Fund for any lawful purpose. All interest or other earnings in the Rate Stabilization Fund may be withdrawn and accounted for as revenues or used for any lawful purpose. The balance in the Water and Wastewater Rate Stabilization Accounts at June 30, 2021, was $16 and $19.4 million, respectively.

At June 30, 2021, Government-Wide restricted cash and investments and restricted cash and investments with fiscal agents are as follows:

Governmental activities 69,656,247$
Business-type activities:

Water Utility 16
Wastewater Utility 19,431,160
Parking Authority 4,693,046
Subtotal 24,124,222
Total restricted cash and investments 93,780,469$
Fiduciary Funds 14,026,682$
65 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 3 – Interfund Transactions

A. Loans To/From Other Funds

“Loans to” and “loans from” balances represent loan activity between funds. These balances are expected to be paid back per a City council approved repayment schedule. Interfund loan balances of $10,726,955, broken down by short and long-term net of interest, as of June 30, 2021, are shown below.

• The $7,641,173 interfund loan balance from the Workers Compensation Fund to the Parking Authority Fund was used to pay-off the existing 2006 Lease Revenue Refunding Bonds Series A, saving the City 2% in annual interest.

• The $2,305,782 interfund loan balance from the Workers Compensation Fund to the Internal Services Fleet Fund was used to pay off three of four remaining Fire Truck Leases, saving the City 2% in annual interest.

• The $780,000 interfund loan from the Technology Internal Service Fund to the Emergency Communications Fund was used for equipment, software, and facility improvements to expand the Fire Dispatch Center.

Fund Making Loan Fund Receiv ing L oan Short-Term Long-term Total Internal Service Funds -Workers' Comp. Parking Authority 629,842$ 7,011,331$ 7,641,173$ Internal Service Funds -Workers' Comp. Internal Service Funds -Fleet 486,720 1,819,062 2,305,782 Internal Service Funds -Technology Emergency Communications - 780,000 780,000 Total 10,726,955$
66 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 3 – Interfund Transactions (Continued)

B. Transfers

Interfund transfers report the nonreciprocal contributions of resources from one fund to another that include program support, debt service and settlement, and other one-time transfers. The following is a summary of transfers for the year ended June 30, 2021:

Transfers In Transfers Out Net Tran sfers
Gov ernmental Activ ities:

General Fund Program Support -$ (12,856,285)$ (12,856,285)$ General Fund Pension Trust Investment - (16,114,000) (16,114,000) General Fund Debt Service - (2,991,175) (2,991,175) Federal Housing Grants Fund Debt Service/ Settlement - (389,348) (389,348) Public Facility Fees Program Support - (1,104,290) (1,104,290) Special Grants Program Support 10,093 - 10,093 Non-Major Government Funds Debt Service/ Settlement 973,369 - 973,369 Non-Major Government Funds Program Support 800,000 (7,413,318) (6,613,318) Non-Major Government Funds Debt Service 2,991,175 - 2,991,175 Capital Improvement Program Support 15,127,881 (584,022) 14,543,859 Internal Service Funds Pension Trust Investment 16,114,000 - 16,114,000 Internal Service Funds Program Support 7,187,350 - 7,187,350 Total governmental activities 43,203,868 (41,452,438) 1,751,430 Business-type Activ ities:

Water Utility Program Support - (242,181) (242,181) Wastewater Utility Program Support - (2,031,111) (2,031,111) Stormwater Utility Program Support - (50,138) (50,138) Marina Program Support 297,000 - 297,000 Golf Courses Program Support 275,000 - 275,000 Total business-type activities 572,000 (2,323,430) (1,751,430) Total Government-Wide Statements 43,775,868$ (43,775,868)$ -$ 67 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 4 – Successor Agency – Loans from City, Net

With the dissolution of the Redevelopment Agency effective January 31, 2012, the following loans are outstanding as of June 30, 2021, most of which are offset by an Allowance for Uncollectible Loans. The Successor Agency received its Finding of Completion from the State Department of Finance on October 30, 2014. On November 4, 2015, the Oversight Board adopted a resolution finding 51 Redevelopment loans from t he City were made for legitimate redevelopment purposes. Dissolution law required that the accrued interest on outstanding loans be recalculated quarterly at a simple interest of 3% from the date the loans were originally authorized by the former Redevelopment Agency . Also, the Department of Finance required approved resolutions and signed loan agreements for the loans to be approved for repayment. However, City staff was unable to locate signed loan agreements or documents and approved resolutions for all of the 51 loans. Adjustments for the write off of all loans were disallowed by the Department of Finance in the 2016- 2017 fiscal year.

In addition, the interest on the loans is limited to the Local Agency Investment Fund interest rate calculated from t he inception date of each loan. T he total outstanding loan balance (including accrued interest) as of June 30, 2021 is $10,561,020 and has been offset by an allowance for uncollectible loan and interest, except the loan amount from Low – Moderate Income Housing Loans.

• The $1,106,580 outstanding loan balance from the Low - Moderate Income Housing fund, a City Special Revenue Fund, to the former Redevelopment Agency Capital Projects Funds was to fund the Waterfront Redevelopment Project Area.

• The $ 2,259,638 outstanding loan balance from the CDBG Programs , a Special Revenue Fund, to the former Redevelopment Agency Capital Projects Fund was for the project area expenditures. The outstanding principal balance is subject to a 3% simple annual interest rate. As of June 30, 2021, outstanding accrued interest balance is $3,191,385.

• The $ 4,003,417 outstanding loan balance from the Capital Improvement Capital Projects Fund to the former Redevelopment Agency Capital Projects Fund represents loans for various project areas.

Fund Providing Loan Fund Receiv ing L oan Outstanding Allowance for Net Balance Low - Moderate Income Housing RDA Loans Private-Purpose Trust Fund - Successor Agency of the 1,106,580$ -$ 1,106,580$ Non-Major Governmental - CDBG Fund Private-Purpose Trust Fund - Successor Agency of the 2,259,638 (2,259,638) - Capital Improvement Projects Fund Private-Purpose Trust Fund - Successor Agency of the 4,003,417 (4,003,417) - Interest on Redevelopment Agency Loans 3,191,385 (3,191,385) - Total 10,561,020$ (9,454,440)$ 1,106,580$
68 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 5 – Loans to Property Owners

Loans provided to property owners are managed by the C ity’s Economic Developme nt Department (EDD). Loans receivables under the City’s loan programs at June 30, 2021 are as follows:

The governmental funds report unavailable revenues from notes and loans receivable as a deferred inflow of resources.

These amounts are recognized or reported as revenues in the period that the amounts become available.

Home Investment Partnership Program (HOME)
The Home Investment Partnerships Loan Programs are funded through U.S. Department of Housing and Urban Development HOME funds. The programs include deferred gap financing loans for qual ified first-time homebuyers, owner-occupied housing rehabilitation loans to qualified borrowers, and multifamily loans to qualified housing developers. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans.

Community Development Block Grant Program
The Community Development Block Grants Loan Programs are funded through U.S. Department of Housing and Urban Development CDBG funds. The programs include deferred gap financing loans for qualified first -time homebuyers, owner occupied emergency repair loans, public facility project loans, and commercial loan programs. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans.

Neighborhood Stabilization Program
The Neighborhood Stabilization Program loans are funded through U.S. Department of Housing and Urban Development Neighborhood Stabilization program funds. The programs include acquisition, rehabilitation, and resale of foreclosed homes (properties) to qualified home buyers, deferred gap financing loans for qualified home buyers; and acquisition, rehabilitation, and rent of foreclosed properties in targeted areas. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans.

California Home Loans Program
The California Home Loans Program are funded through the California Department of Housing and Community Development. The programs include deferred gap financing loans to qualified first -time homebuyers and owner occupied rehabilitation loans. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans.

Low- and Moderate-Income Housing
The City’s Low- and Moderate-Income Housing Programs are funded through the Low and Moderate-Income Housing City Loans Special Revenue Fund and Strong Neighborhoods Initiative Bond proceeds. The programs include loans for rehabilitation and construction of affordable housing units which are deed restricted for occupancy by low - and moderate-income households for at least fifty-five years. Interest income is recorded as payments when received.

Loan Programs Principal
Balance
Deferred
Interest Total
Home Investment Partnerships Program (HOME) 42,444,677$ 8,085,858$ 50,530,535$ Community Development Block Grant Programs 17,404,816 2,503,811 19,908,627 Neighborhood Stabilization First Time Home Buyer Program 11,120,646 1,295,585 12,416,231 California Home Loans 3,135,052 343,775 3,478,827 Low & Moderate Income Housing Programs (former Agency) 53,650,133 14,015,386 67,665,519 127,755,325$ 26,244,416$ 153,999,739
Less: Allowance for Doubtful Accounts (1,893,720)
152,106,019$
Governmental Activites
69 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 6 – Capital Assets

A. Government-Wide Financial Statements

At June 30, 2021, the City’s capital assets consisted of the following:

Governmental Business -Type
Acti
v ities Activ ities Total
Capital assets, not being depreciated:

Land 38,196,565$ 15,127,218$ 53,323,783$ Intangible assets - easements 4,354,960 - 4,354,960 Construction in progress 162,224,943 123,266,238 285,491,181 Total capital assets, not being depreciated 204,776,468 138,393,456 343,169,924 Capital assets, being depreciated:

Infrastructure 614,965,324 - 614,965,324 Buildings and improvements 309,180,122 1,049,166,303 1,358,346,425 Machinery and equipment 80,079,827 17,710,847 97,790,674 Total capital assets, being depreciated 1,004,225,273 1,066,877,150 2,071,102,423 Less accumulated depreciation for:

Infrastructure (226,546,308) - (226,546,308) Buildings and improvements (137,721,588) (426,101,096) (563,822,684) Machinery and equipment (51,955,384) (12,137,056) (64,092,440) Total accumulated depreciation (416,223,280) (438,238,152) (854,461,432) Total capital assets, being depreciated, net 588,001,993 628,638,998 1,216,640,991 Total capital assets, net 792,778,461$ 767,032,454$ 1,559,810,915$ 70 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 6 – Capital Assets (Continued)

B. Governmental Activities

Summary of changes in governmental activities capital assets for the year ended June 30,2021, are as follows:

Governmental activities depreciation expenses for capital assets for the year ended June 30, 2021, are as follows:

Balance Reclassification/ Balance
Governmental activities: July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated:

Land 40,826,912$ -$ (2,630,347)$ -$ 38,196,565$ Intangible assets - easements 4,354,960 - - - 4,354,960 Construction in progress 139,973,040 34,717,728 - (12,465,825) 162,224,943 - Total capital assets, not being depreciated 185,154,912 34,717,728 (2,630,347) (12,465,825) 204,776,468 Capital assets, being depreciated:

Infrastructure 604,425,115 2,231,603 - 8,308,606 614,965,324 Buildings and improvements 307,309,861 - - 1,870,261 309,180,122 Machinery and equipment 75,038,330 3,591,640 (2,490,809) 3,940,666 80,079,827 Total capital assets, being depreciated 986,773,306 5,823,243 (2,490,809) 14,119,533 1,004,225,273 Less accumulated depreciation for:

Infrastructure (215,130,308) (11,416,000) - - (226,546,308) Buildings and improvements (131,362,743) (6,358,845) - - (137,721,588) Machinery and equipment (49,062,501) (5,229,676) 2,336,793 - (51,955,384) Total accumulated depreciation (395,555,552) (23,004,521) 2,336,793 - (416,223,280) Total capital assets, being depreciated, net 591,217,754 (17,181,278) (154,016) 14,119,533 588,001,993 Governmental activities capital assets, net 776,372,666$ 17,536,450$ (2,784,363)$ 1,653,708$ 792,778,461$ Gov ernmental Activ ities:

General Government 629,183$
Publi
c Works 12,906,318
Parks & Recreation 3,381,251
Library 198,970
Public Safety 1,473,050
Internal Service Funds 4,415,749
Total 23,004,521$
71 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 6 – Capital Assets (Continued)

C. Business-Type Activities

Summary of changes in business-type activities capital assets for the year ended June 30, 2021, are as follows:

Business-type activities depreciation expenses for capital assets for the year ended June 30, 2021, are as follows:

Balance Reclassification/ Balance
Business-type activities: July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated:

Land 12,492,778$ 2,634,440$ -$ 15,127,218$ Construction in progress 61,268,607 73,818,240 (1,125,462) (10,695,147) 123,266,238 Tot
al capital assets, not being depreciated 73,761,385 76,452,680 (1,125,462) (10,695,147) 138,393,456 Capital assets, being depreciated:

Buildings and improvements 1,037,106,626 1,368,901 - 10,690,776 1,049,166,303 Machinery and equipment 17,112,542 2,257,334 (9,692) (1,649,337) 17,710,847 Total capital assets, being depreciated 1,054,219,168 3,626,235 (9,692) 9,041,439 1,066,877,150 Less accumulated depreciation for:

Buildings and improvements (403,739,058) (22,362,038) - - (426,101,096) Machinery and equipment (11,183,124) (963,624) 9,692 - (12,137,056) Total accumulated depreciation (414,922,182) (23,325,662) 9,692 - (438,238,152) Total capital assets, being depreciated, net 639,296,986 (19,699,427) - 9,041,439 628,638,998 Business-type activities capital assets, net 713,058,371$ 56,753,253$ (1,125,462)$ (1,653,708)$ 767,032,454$ Business-type Activ ities:

Water Utility 7,700,656$
Wastew
ater Utility 12,481,751
Stormwater Utility 1,668,286
Parking Authority 842,010
Golf Courses 531,869
M arina 101,090
Total 23,325,662$
72 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 6 – Capital Assets (Continued)

D. Fiduciary Fund Activities

Summary of Changes in Fiduciary Fund capital assets for the year ended June 30, 2021, are as follows:

Fiduciary fund depreciation expenses for capital assets for the year ended June 30, 2021, are as follows:

Balance Balance
Fiduciary fund activities: July 1, 2020 Additions Deletions June 30, 2021 Capital assets, not being depreciated:

Land 12,602,828$ - $ - $ 12,602,828$ Intangible assets - easements 100,000 - - 100,000 Total capital assets, not being depreciated 12,702,828 - 12,702,828 Capital assets, being depreciated:

Infrastructure 10,898,549 - - 10,898,549 Buildings and improvements 10,929,529 - - 10,929,529 Machinery and equipment 471,547 - - 471,547 Total capital assets, being depreciated 22,599,625 - - 22,299,625 Less accumulated depreciation for:

Infrastructure (2,775,613) (249,654) - (3,025,267) Buildings and improvements (6,128,082) (334,942) - (6,463,024) Machinery and equipment (260,706) (18,677) - (279,383) Total accumulated depreciation (9,164,401) (603,274) - (9,767,675) Total capital assets, being depreciated, net 13,435,224 (603,274) - 12,531,950 Governmental activities capital assets, net 26,138,052$ (603,274) $ - $ 25,234,778$ Fiduciary Fund Activ ities:

Successor Agency 603,274 $
73 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities

A. Governmental Activities

Summary of changes in governmental activities long-term debt for the year ended June 30, 2021, are as follows:

Balance Payments/ Balance L ong term
July 1, 2020 Additions Reducti ons June 30, 2021 Short-Term Portion Gov ernmental Fund Activ ities Debt
City Debt
Assu
red Guaranty Settlement
Assured Settlement Obligation 53,378,240$ - $ (130,569)$ 53,247,671$ 164,013$ 53,083,658$ Total Settlement Obligation Bonds 53,378,240 - (130,569) 53,247,671 164,013 53,083,658 Other Long-Term Obligations
CDBG
USD-HUD Housing Note 7,790,000 - (1,675,000) 6,115,000 1,750,000 4,365,000 Subtotal CDBG 7,790,000 - (1,675,000) 6,115,000 1,750,000 4,365,000 Capital Lease Obligations
406,376 - (199,890) 206,486 206,486 - Total Capital Leases and Loan 406,376 - (199,890) 206,486 206,486 - Total 61,574,616$ - $ (2,005,459)$ 59,569,157$ 2,120,499$ 57,448,658$ Capital / Equip (Fire)
Tax-Exempt Lease Obligation-2013
74 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

GASB 88 statement with respect to Governmental debt. GASB 88 requires certain conditions to be disclosed, specifically:

1.Amounts of unused lines of credit

2.Assets pledged as collateral for debt

3.Terms specified in debt agreements related to significant (1) events of default with finance-related consequences, (2) termination events with finance-related consequences, and (3) subjective acceleration clauses.

Where appropriate items needing to be disclosed have been included below under each section that they apply.

Pension Obligation Bonds

Taxable Pension Obligation Bonds 2007 Series A and Series B (the “2007 POBs”)

The 2007 POBs were issued on March 26, 2007, to refinance the obligation of the City to make payments to the California Public Employees Retirement System for retirement benefits accruing to its employees and retirees. The 2007 POBs for Series A were issued in the amount of $96,985,000. As of June 30, 2021, bonds totaling $77,730,000 were due in installments of principal ranging from $2,850,000 on September 1, 2021, to $8,400,000 on September 1, 2037, with interest rates ranging from 5.365% to 5.455%, and a final maturity date of September 1, 2037. The 2007 POBs for Series B were issued in the amount of $28,325,000. At June 30, 2021, bonds totaling $ 25,955,000 are due in installments of principal ranging from $ 950,000 on September 1, 2021, to $2,800,000 on September 1, 2037, with interest rates ranging from 5.675% to 5.795%. The Series A and Series B for the 2007 POBs are insured by Assured Guaranty and do not have a reserve fund. The above liabilities are written down and an alternate liability is being recorded which reflects the payments required by the City under a settlement agreement reached with Assured Guaranty. This background on the original liabilities is shown in this footnote due to the bonds still trading in the secondary markets.

As part of a settlement between the City and Assured Guaranty, that became effective upon implementation of the approved Plan of Adjustment. The City is obligated, under a revised indenture, to pay a new series of payments.

That series of payments is made up of Non- Contingent General Fund payments which are made up of three types; Special Fund, Ask, and Supplemental, which have all been determined . Special Fund payments range from $1,566,255 on July 1, 2021 to $2,009,482 due on July 1, 2053; Lease Ask Fund payments are due in in installments ranging from $1,334,875 on June 1, 2022 to $2,531,250 due on June 1, 2052; and Supplemental Payments are due in installments of $250,000 from June 1, 2023, to June 1, 2042, and installments of $350,000 from June 1, 2023, to June 1, 2052. Additionally, there are Contingent General Fund Payments, which are yet to be determined by future revenues of the City’s General Fund. These Contingent Payments extend from June 1, 2022, to June 1, 2053, should General Fund Revenues require them to be made. The payment due June 1, 2022, is currently anticipated to be $2,756,000.

75 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Pension Obligation Bonds (Continued)

Taxable Pension Obligation Bonds 2007 Series A and Series B (the “2007 POBs”) (Continued)

Payments made after the original debt service end date of September 1, 2037, will be retained by Assured Guaranty.

The obligation of the City to pay these settlement amounts when due is an absolute and unconditional obligation of the City imposed by law and is not limited to any special source of funds. Under the Revised Indenture, the City is obligated to deposit non-contingent settlement payments with the Trustee as detailed above and reflected in the table below.

Under the settlement agreement, payments are to be made from all legally available funds and resources available to the City. Under extraordinary events, the City may notice Assured Guaranty and suspend contingent paym ents.

Should this occur, unpaid amounts accrue interest at the Prime Rate plus 3% and must be paid no later than ten years after the suspension date. Additionally, any delinquent payments due under the agreement shall also accrue interest at the prime rate plus 3%.

Debt Service on the original bonds expires in September 2037, and payments under the settlement agreement extend to July 2053. If contingent payment streams drastically exceed expectations, it is possible that scheduled payments could reach a point of paying back funds forwarded and accrued interest associated with these funds. Should this occur, it is possible that payments could cease before July 2053.

The City settlement with Assured Guaranty was confirmed as part of the City’s Approved Bankruptcy Plan of Adjustment. The plan for the adjustment of the City’s debts provides for material modifications of the City’s obligations on the 2007 POBs and results in a schedule of payments reflected in the following table.

The City pledged all available sources available to the City, up to and including the General Fund as collateral for the Bonds.

Should default in prompt payment or in other obligations under the settlement agreement with Assured Guaranty occur and remain unresolved, under section 5.02 of t he Reimbursement Agreement, non -contingent payment streams accelerate and are immediately due and payable. Assured Guaranty is allowed to exercise all rights and remedies legally available (without limitation) to enforce payment of Contingent General Fund Payments due in each year as they become required.
76 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Pension Obligation Bonds (Continued)

Annual Debt Service Requirements to Maturity

The amounts in the annual debt service requirements to maturity schedule are the scheduled debt service under the bond indentures and settlement agreements.

Other Long-term Obligations

Notes Payable

The City entered into four Section 108 loan guarantee agreements with the U.S. Department of Housing and Urban Development to complete redevelopment projects. All but one has been repaid. The final loan has installment payments due in installments ranging from $615,000 to $1,920,000 and are to be paid through August 1, 2024, with reduced interest rates ranging from 2.57% to 2.668%. Repayment of the loans is made from program income received under the City’s housing loans program.

The City pledged its federal funds under the HUD program available to the City as collateral for the Bonds. Should default in prompt payment with respect to the payment under these loans occur, future payments to the City under the HUD program would be held back and used as payment for these loans.

Year
June 30, Principal Inter est Interest Principal Interest 2022 164,013$ 1,428,483$ 1,334,875$ -$ -$ 2023 198,847 1,419,436 2,529,750 - 250,000 2024 237,557 1,408,468 2,529,125 - 250,000 2025 278,378 1,395,364 2,527,750 - 250,000 2026 321,242 1,380,009 2,530,563 - 250,000 2027-2031 869,227 6,735,406 12,650,313 - 1,250,000 2032-2036 1,791,816 6,397,032 12,653,440 - 1,250,000 2037-2041 3,732,677 5,735,515 8,369,086 - 1,250,000 2042-2046 5,582,164 4,465,246 4,824,799 870,029 779,971 2047-2051 7,301,209 2,746,201 2,415,035 1,415,845 334,155 2052-2056 5,419,831 608,615 132,325 331,703 18,297 Total 25,896,960$ 33,719,776$ 52,497,062$ 2,617,577$ 5,882,423$ Special Fund Payments Supplemental Payments
2007 Lease Ask
Payments
77 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Annual Debt Service Requirements to Maturity

Capital Lease Obligations

Fire Pumper Trucks

On January 24, 2012, Resolution 2012-01-24-1504 approved the execution of a tax-exempt lease through OshKosh Capital in the amount of $1,795,506 to purchase 4 Pierce Fire Pumper Trucks. Modifications to the contract increased the lease amount to $1,871,404. The tax- exempt lease has annual lease payments of $213,300 with final payment due September 15, 2021, with an interest rate of 3.300%.

The four Pierce pumper trucks purchased through the Oshkosh Financing in this 2012 issuance are pledged in the borrowing and should default in payment occur, or appropriation fail to be made for annual lease payments, the fire trucks may be repossessed. The City agrees to keep the vehicles purchased under this financing free of liens and encumbrances, and to keep the vehicles insured up to the remaining termination value of the lease.

The assets acquired through the capital lease are as follows:

The lease qualifies as a capital lease for accounting purposes and have been recorded at the pre sent value of the future minimum lease payments. As of June 30, 2021 , the future minimum lease obligations and the net present value of this minimum lease payments are as follows:

Year Ending
June 30, Princi pal Interest
2022 1,750,000$ 135,771$
2023 1,830,000 89,979
2024 1,920,000 41,541
2025 615,000 8,204
Total 6,115,000$ 275,495$
Notes Payable
U.S. Dept. of Housing & Urban Dev elopment
Fire Vehicles - Lease #2
Machinery and Equipment 1,871,404$
Less
: Accumulated depreciation (1,039,669)
Total 831,735$
2013 Oshkosh
Year Ending
June 30, Principal Inter est
2022 206,486$ 6,814$
Total 206,486$ 6,814$
Capital Lease #2
78 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities

Summary of changes in business-type activities long-term debt for the year ended June 30, 2021, are as follows:

Water Utility Obligations
Balance
July 1, 2020 Additions
Payments/
Reductions
Amort/Prem/
Disc/Deferred
Amounts

Balance
June 30,2021 Short-Term Long-Term
2018A Water System Demand Revenue Bonds 140,385,000$ - $ (5,090,000)$ -$ 135,295,000$ 5,365,000$ 129,930,000$ P
remium 13,951,480 - - (810,072) 13,141,408 810,073 12,331,335 54,785,000 (540,000) - 54,245,000 545,000 53,700,000 209,121,480 - (5,630,000) (810,072) 202,681,408 6,720,073 195,961,335 Wastewater Utility Obligations
2014 Wastewater Refunding Revenue Bonds 51,945,000 - (3,995,000) - 47,950,000 4,195,000 43,755,000 Premium (on 2014 refunding) 6,693,826 - - (729,981) 5,963,845 729,981 5,233,864 2019 Bond Anticipation Note 118,510,000 - - 118,510,000 - 118,510,000 177,148,826 - (3,995,000) (729,981) 172,423,845 4,924,981 167,498,864 Central Parking District
24,355,000 - - 24,355,000 245,000 24,110,000 Premium 5,592,266 - (209,710) 5,382,556 209,710 5,172,846 29,947,266 (209,710) 29,737,556 454,710 29,282,846 Marina Operation
CDBW Harbor Facility Construction
and Planning Loans 10,870,821 - - - 10,870,821 - 10,870,821 10,870,821 - - - 10,870,821 - 10,870,821 Total - E nterprise Fund Activ ities Debt 427,088,393$ - $ (9,625,000)$ (1,749,763)$ 415,713,630$ 12,099,764$ 403,613,866$ 2019A Water Sy stem Deman d Taxable
Revenue
2020 Parking Lease Revenue Bonds
79 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Water Utility

Stockton Public Financing Authority Revenue Refunding Bonds Series 2018A

The 2018 Water Revenue Bonds, Series A were issued in the amount of $145,220,000 by the SPFA on November 20, 2018. The SPFA issued the Bonds to refinance three series of bonds issued in 2002, 2005, and 2009, that finance multiple projects, including the majority of the financing for the Delta Water Supply Project. As of June 30, 2021, $135,295,000 of 2018A Bonds remain outstanding with installment s of principal ranging from $5,365,000 to $12,195,000 due October 1, 2021, through October 1, 2037, with interest rates ranging from 4.0% to 5.0%.

The repayment of the 2018A Bonds is from a pledge of available revenues of the fund. Available funds are ne t revenues of the fund and the 2018 Bonds have parity lien with the 2019A bonds (see below). The principal amount due is reported net of the unamortized premium of $13,141,408, and unamortized loss on refunding of $6,271,226.

Stockton Public Financing Authority Water Revenue Refunding Bonds Series 201 9A Federally Taxable) (Green Bonds)

The 2019 Water Revenue Bonds, Series were issued in the amount of $54,785,000 by the SPFA on November 19, 2019. The SPFA issued the Bonds to refinance bonds issued in 2010 that financed the final portion of the Delta Water Supply Project. As of June 30, 2021, $54,245,000 of 2019A Bonds remain outstanding with installments of principal ranging from $545,000 to $15,635,000 beginning October 1, 2019, through October 1, 2040, with interest rates ranging from 2.048% to 3.61%. There was no gain or loss as a result of the current refunding.

The repayment of the 2019A Bonds is from a pledge of net revenues of the fund and the Bonds are issued on parity with the 2018A water bonds. The bonds were issued without premium or discount and are reported net of an unamortized loss on refunding of $6,445,143.

Pledge Revenues

The City has pledged future net system revenues from the Water Fund for the repayment of all the Revenue Bonds of the Water Fund. For the year ended June 30, 2021, total principal and interest paid was $14,285,486 and net revenues were $34,742,000. Rate stabilization Funds balances at the end of FY 20/21 stand at $2,943,483. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $284,433,793.

Events of default with finance related consequences and subjective acceleration are included in section 7.XX of the indentures for both of the bonds listed above. These acceleration clauses only occur upon continued default in payment of performance of covenanted actions and receipt of a written request of not less than a majority of the bondholders, after which the Trustee would pull from funds on hand under the separate section of the agreement, and then upon court order from net revenues of the system held by the City.

80 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Water Utility (Continued)

Pledge Revenues (Continued)

The bonds and notes of the Water Utility are secured by and payable from certain revenues of the City's water enterprise fund (the “Water Fund”), amounts that are derived from "property related fees" collected by the City for water service. Application of amounts in the Water Fund is governed by the requirements of Article XIIID, Section 6 of the California Constitution, which provides that the Water Fund may only be used for the water enterprise and may not be used for general governmental purposes. The City is in compliance with its covenants in connection with its obligations, including covenants on the current rates and charges, and the Water Fund has revenues sufficient to meet the operation and maintenance costs of the water enterprise, scheduled debt service and required debt service coverage.

Debt Covenants

The Revenue Bonds all require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for the water bonds is 115% of net system revenues, which are pledged for repayment of the revenue bonds. The DSC ratio is the measure of the Water Fund’s ability to have sufficient resources to pay its debt service. The Water Fund has met its DSC for the fiscal year ended June 30, 2021.

Wastewater Utility

Stockton Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2014 Wastewater Revenue Refunding Bonds, Series 2014 (1998 Wastewater Project and 2003 Wastewater Project) were issued in an amount of $69,440,000 by the SPFA on November 24, 2014. As of June 30, 20 20, bonds totaling $58,638,826 are due in annual installments of principal ranging from $3,795,000 to $6,530,000 beginning September 1, 2019, through September 1, 2029, with interest rates of 5.00% on the bonds outstanding. The Bonds were issued to advance refund the 1998 and 2003 certificates of participation. Repayment of the Bonds is a pledge of net revenues of the Wastewater Fund. With the implementation of Government Accounting Standard Board (“GASB”) Statement No. 65, the balance of the loss on refunding is reported as a deferred outflow of resources and at June 30, 2021, there is $ 1,393,644 outstanding. The principal amount due is reported net of the unamortized premium of $5,963,845.

Stockton Public Financing Authority Wastewater Bond Anticipation Notes, Series 2019

Wastewater Bond Anticipation Notes, Series 2019 were issued in an amount of $118,510,000 by the SPFA on October 22, 2019. As of June 30, 2021, notes totaling $118,510,000 are due to be repaid June 1, 2022, are outstanding at a rate of 1.40%, and are callable any time after June 1, 2021, should future financings provide cheaper financing.

The Notes were issued to provide initial funding to commence with the Regional Wastewater Control Facil ity upgrades, which are necessary to maintain compliance with updated state and federal standards. Repayment of the notes is from a pledge of net revenues of the Wastewater Fund and the Notes are issued on parity with the 2014A bonds. The Notes were issued without premium or discount.

81 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Wastewater Utility (Continued)

GASB 88 Reporting of Unused lines of Credit

On September 30, 2020, the City secured long- term financing from the US Environmental Protection Agency’s - Water Infrastructure Finance and Innovation Act (WIFIA). The 30 Year financing had not been used as of June 30, 2021. The 30-year financing secures $108,000,000 of financing at a rate of 1.20%. It is anticipated that all funds will be drawn in FY 2021-22 and, along with $10,510,000 in funds on hand, will be used to pay off the 2019 BANs. This long- term financing is issued on parity with the 2014A Wastewater bonds and is secured by the net revenues of the wastewater system.

Pledge Revenues

The City has pledged future net revenues from the Wastewater Fund for the repayment of the Bonds and Notes. For the year ended June 30, 2021, the City paid total principal and interest of $8,151,515 and had net revenues of $34,358,000. On June 30, 2021, the total principal and interest remaining to be paid on the Wastewater Bonds are $179,799,640.

The bonds of the Wastewater Utility are secured by and payable from certain revenues of the City's wastewater enterprise fund (the “Wastewater Fund”), amounts that are derived from "property related fees" collected by the City for wastewater service. Application of amounts in the enterprise fund is governed by the requirements of Article XIIID, Section 6 of the California Constitution, which provides that the enterprise fund may only be used for the wastewater enterprise and may not be used for general governmental purposes. The City is in compliance with its covenants in connection with its obligations, including covenants on the current rates and charges, and the wastewater Fund has revenues sufficient to meet the operation and maintenance costs of the wastewater utility, scheduled debt service and required debt service coverage.

Events of default with finance related consequences are included in section 7.XX of the indentures for the bond listed below. In no event are the 2014 bonds, or 2019 notes subject to acceleration if an event of default occurs and is not resolved. In the event of unresolved payment default, the Trustee would pull from funds on hand under the separate section of the agreement, and then upon court order from net revenues of the system held by the City.

Debt Covenants

The Bonds require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for Bonds is 115% of Adjusted Net System Revenues which are pledged toward repayment of all bonds. The DSC ratio is the measure of the Wastewater Fund’s ability to have sufficient resources to pay its debt service. The Wastewater Fund has met its DSC for the fiscal year ended June 30, 2021, at each measurement period. 82 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Parking Authority

Stockton Public Financing Authority- Parking Revenue Bonds, Series 2020

The 2020 Parking Revenue Bonds were issued in the amount of $24,355,000 by the SPFA on February 12, 2020.

As of June 30, 2021, the 2020 Parking Bonds totaling $24,355,000 are due in annual installments of principal ranging from $245,000 on March 1, 2022 to $1,605,000 on March 1, 2047, with interest rates ranging from 4.00% to 5.00%, and a final maturity date of March 1, 2047. The 2020 Parking Bonds were issued to refund the bankruptcy settlement on the 2004 Parking bonds, and along with payments from the bond insurer, to pay off the holders of the 2004 Parking bonds, and to provide $3 million in capital funding to finance repairs and upgrades to facilities. The 2004 bonds had financed the construction of the Stockton Events Center Parking Structure, the Edward S. Coy Parking Garage, and other parking facilities within the Parking Authority.

The repayment of the 2020 Bonds is from a pledge of net revenues of the fund. The principal amount due is reported net of the unamortized premium of $5,382,556, and unamortized loss on refunding of $444,560.

The principal and interest amounts reported below are based on total settlement payments discounted at the average rate of payment required on the remaining bonds when they were written off. Which is in compliance with Governmental Accounting Standards Board Statement 58 (GASB 58) which is the authoritative literature for government bankruptcy implementation. As part of a settlement between the City and NPFG, that became effective upon implementation of the Approved Bankruptcy Plan of Adjustment, the City is obligated under a revised indenture to pay a new series of payments, which are due February 25 and August 25 of each year, commencing with 2015 and the pledge to make payments from any available source is no longer in place, but rather is limited to gross Authority revenues. That series of payments extends to February 25, 2047. The difference between these payments and the original debt service scheduled on these bonds is to be made up by NPFG. Payments which extend beyond the original debt service end date of September 1, 2034, will be retained by NPFG.

Downtown Marina

Construction and Planning Loans

On March 17, 1997, the City entered into an agreement with the California Department of Boating and Waterways (“DBAW”) for a planning loan to provide funding for a feasibility study regarding the potential construction of waterfront improvements. That feas ibility study was approved on May 16, 2000, and the City entered into an agreement with DBAW for the construction loan to develop a small craft harbor facility on August 9, 2004.

Engineering work began in the fiscal year 2006. Construction of the facility started during the fiscal year ended June 30, 2009, and the project was completed in 2011. The principal remaining to be paid on both the planning and construction loans as of June 30, 2021, is $10,870,821.

The construction note was scheduled to be repaid under a 30-year repayment schedule at 4.5% interest beginning in August 2011. Repayment of the Note is secured by a pledge of the gross revenues of the Downtown Marina, which have been insufficient to pay the full debt service. The loan provides that, subject to the requirements of Article XVI, Section 18 of the California Constitution (the “Debt Limit”), the City will make up any shortfall in debt service after application of Marina revenues. The Marina does not currently generate sufficient annual reven ues to cover operational costs (net of debt service), and the City continues to provide an annual subsidy to the operator to cover this shortfall.

83 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Downtown Marina (Continued)

Construction and Planning Loans (Continued)

On March 17, 1997, the City entered into an agreement with the California Department of Boating and Waterways (“DBAW”) for a planning loan to provide funding for a feasibility study regarding the potential construction of waterfront improvements. That feasibility study was approved on May 16, 2000, and the City entered into an agreement with DBAW for the construction loan to develop a small craft harbor facility on August 9, 2004.

The construction note was scheduled to be repaid under a 30-year repayment schedule at 4.5% interest beginning in August 2011. Repayment of the Note is secured by a pledge of the gross revenues of the Downtown Marina, which have been insufficient to pay the full debt service. The loan provides that, subject to the requirements of Article XVI, Section 18 of the California Constitution (the “Debt Limit”), the City will make up any shortfall in debt service after application of Marina revenues. The Marina does not currently generate sufficient annual revenues to cover operational costs (net of debt service), and the City continues to provide an annual subsidy to the operator to cover this shortfall.

The City’s settlement with DBAW as to the treatment of this obligation was confirmed as Part of the City’s Approved Bankruptcy Plan of Adjustment. The terms of the settlement call for the outstanding principal to be paid from net operating revenues of the Marina operation, with no interest accruing on the unpaid portion. The settlement removes the General Fund backing and a R eserve Fund Balance formerly in place in the General Fund has been removed. With operations continuing to receive an annual subsidy, it is unknown when any principal reduction payment will occur.

Annual Debt Service Requirements to Maturity

Water Utility Wastewater Utility Central Parking District Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2022 5,910,000$ 8,383,287$ 122,705,000$ 3,122,195$ 245,000$ 1,174,200$ 2023 6,205,000 8,096,450 4,410,000 2,077,500 360,000 1,161,950 2024 6,220,000 7,801,588 4,635,000 1,851,375 545,000 1,143,950 2025 6,530,000 7,498,223 5,090,000 1,608,250 570,000 1,116,700 2026 6,860,000 7,178,633 5,345,000 1,347,375 600,000 1,088,200 2027-2031 39,940,000 30,463,368 24,275,000 2,503,375 3,480,000 4,960,000 2032-2036 51,905,000 19,462,274 - - 4,440,000 3,998,250 2037-2041 65,970,000 6,009,971 - - 5,555,000 2,884,200 2042-2046 - - - - 6,955,000 1,478,250 2047-2051 - - - - 1,605,000 80,250 Total 189,540,000$ 94,893,793$ 166,460,000$ 12,510,070$ 24,355,000$ 19,085,950$ Revenue Bonds Revenue Bonds Settlement L iability
84 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Activities

Summary of changes in fiduciary fund long-term liabilities for the year ended June 30, 2021, are as follows:

Successor Redevelopment Agency

GASB 88 statement
There are no unused credit lines for any Successor Agency debt. A pledge of Tax revenues received by the Successor Agency as described below is the only source of payment pledged on these bonds and no real property is pledged as collateral. Section 10.XX of the indenture lists events of default that if uncured, may, with consent of 25% of the registered owners, result in acceleration of the bonds. Should this occur, funds held by the trustee will be immediately used to satisfy any defaulted payment. Subsequently, the bond insurer would be required to satisfy bondholders as payments become due. Upon court order, Tax Revenues received by the Agency would be transmitted to the Trustee, or Insurer to satisfy reimbursement. The bond insurer, at its option may satisfy the accelerated payments and seek reimbursement from Tax Revenues received by the Agency.

2016 Tax Allocation Refunding Bonds, Series A and B (Federally Taxable)

The Successor Agency issued the 2016 Tax Allocation Bonds, Series A in the amount of $73,310,000 on November 3, 2016 to provide funds to refinance bonds issued in 2004 to finance a portion of the downtown Arena, and 2006 Series A bonds used to finance redevelopment projects in the North, South, and Midtown projects areas of the former Redevelopment Agency.

As of June 30, 2021, the 2016 Series A Bonds totaling $73,310,000 are due in annual installments of principal ranging from $610,000 on September 1, 2024 to $7,195,000 on September 1, 2037, with final payment on September 1, 2037, with interest rates ranging from 3.25% to 5.00%. The principal amount due is reported net of the unamortized premium of $7,412,188.

The 2016 Tax Allocation Bonds, Series B (Federally Taxable) were issued i n the amount of $30,010,000 on November 3, 2016 to provide funds to refinance Certificates of Participation issued in 2003 to finance the construction of capital improvements to provide redevelopment housing in the City of Stockton, and R2006 Series C Bonds issued to finance certain low and moderate-income housing projects throughout the City of Stockton.

As of June 30, 2021, the 2016 Series B Bonds totaling $ 14,940,000 are due in annual installments of principal ranging from $3,415,000 to $3,925,000 due in annual installments through on September 1, 2037, with interest rates ranging from 2.125% to 2.75%. The principal amount due is reported net of the unamortized discount of $102,591.

Balance Balance
Successor Agency to RDA of Stockton July 1, 2020 Additions Reductions June 30, 2021 Current Non-Current Revenue Bonds
73,310,000$ - $ -$ 73,310,000$ -$ 73,310,000$ Premium 7,975,141 - (562,953) 7,412,188 562,953 6,849,235 18,625,000 - (3,685,000) 14,940,000 3,760,000 11,180,000 Discount (134,987) - 32,396 (102,591) (32,396) (70,195) Total RDA L iabilities 99,775,154$ - $ (4,215,557)$ 95,559,597$ 4,290,557$ 91,269,040$ 2016 Series A Successor Agency
Tax Allocation Bonds
2016 Series B Successor Agency
Tax Allocation Bonds (Taxable)
85 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Activities (Continued)

The 2016 Series A and B bonds are limited obligations of the Successor Agency secured by a first charge and lien on, and a security interest in Tax Revenues received by the Successor Agency pursuant to the laws of the State of California related to Redevelopment Property Tax Trust Fund (“RPTTF”) and the revenues of the former Redevelopment Agency under California Health and Safety Code Sections 34183 and 34170.5(b), whereby the County Auditor-Controller is obligated to deposit the Tax Revenues into the RPTTF.

A pledge of tax revenues received by the Successor Agency as described below is the only source of payment pledged on these bonds and no real property is pledged as collateral. Section 10.XX of the indenture lists events of default that if uncured, may, with consent of 25% of the registered owners, result in acceleration of the bonds. Should this occur, funds held by the trustee will be immediately used to satisfy any defaulted payment. Subsequently, the bond insurer would be required to satisfy bondholders as payments become due. Upon court order, Tax Revenues received by the Agency would be transmitted to the Trustee, or Insurer to satisfy reimbursement. The bond insurer, at its option may satisfy the accelerated payments and seek reimbursement from Tax Revenues received by the Agency.

Annual Debt Service Requirements to Maturity

Land Secured Debt Financing (No City Commitment) – The City has authorized the formation of community facilities districts (CFDs) and assessment districts (called local improvement districts) or LIDs and the issuance of bonds under various public improvement acts of the State of California to finance eligible public facilities necessary to serve developing commercial, industrial, residential and/or mixed-use developments. The bonds are secured by annual special tax levies or liens placed on the property within the districts.

The City is not liable for repayment and is only responsible for collecting the special taxes or assessments, making payment from the special taxe s or assessments to bondholders, and initiating foreclosure proceedings when necessary. These bonds are payable solely from special taxes or assessments, specific reserves, and the proceeds from property foreclosures. Accordingly, the bonds are not repor ted as liabilities in the City’s basic financial statements. As of June 30, 2021, there was five one CFD special tax bonds and four revenue bonds outstanding with aggregate principal amounts payable of $29,518,000 and $59,970,000, respectively.

Year
Ending
June 30, Principal Interest Principal Interest
2022 -$ 3,373,800$ 3,760,000$ 323,188$ 2023 - 3,373,800 3,840,000 237,638 2024 - 3,373,800 3,925,000 142,975 2025 610,000 3,358,550 3,415,000 46,956 2026 4,150,000 3,239,550 - - 2027-2031 24,085,000 12,785,875 - - 2032-2036 30,360,000 6,429,700 - - 2037-2039 14,105,000 592,500 - - Total 73,310,000$ 36,527,575$ 14,940,000$ 750,756$ 2016 Series A Successor Agency
Tax Allocation Bonds
2016 Series B Successor Agency Tax
Allocation Bonds (Taxable)
86 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 8 – Accrued Compensated Absences

The value of all accumulated vacation and longevity vacation allowance is accrued, as appropriate, for all funds. Earned but unused sick is not accrued starting with negotiated bargaining unit contracts that began in the fiscal year 2012-13 and continued through June 30, 2021. The bargaining unit contracts state that all sick time accrual has no cash value upon separation from the City.

The compensated absence accrual is presented in the Government-Wide and Business Type proprietary fund financial statements. The changes in compensated absences of governmental and business-type activities are as follows:

Note 9 – Unamortized Loss on Refunding

Summary of changes in unamortized loss on refunding for the year ended June 30, 2021:

Governmental Business-Type
Acti
v ities Activ ities Total
Beginning July 1, 2020 10,789,535$ 1,171,043$ 11,960,578$ Additions 11,293,149 1,668,496 12,961,645 Payments (8,965,794) (1,246,358) (10,212,152) Balance June 30, 2021 13,116,890$ 1,593,181$ 14,710,071$ Current Portion 7,088,691$ 1,040,836$ 8,129,527$ Non-Current Portion 6,028,199$ 552,345$ 6,580,544$ Balance
July 1, 2020 Additions Deletions Balance
June 30, 2021
Municipal Utility E nterprise Debt Obligations
2018 Water Refunding 6,657,802$ -$ (386,576)$ 6,271,226$ 2019 Water Refunding 6,779,956 - (334,812) 6,445,144 2014 Wastewater Refunding Revenue Bonds 1,564,227 - (170,583) 1,393,644 Subtotal - Municipal Utility E nterprise Debt 15,001,985 - (891,971) 14,110,014 Parking Authority
2020 Parking Revenue Bonds 461,881 - (17,321) 444,560 Total Deferred Amount on Refunding 15,463,866$ -$ (909,292)$ 14,554,574$ 87 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 10 – Fund Balances

A summary of the City’s fund balance classification as nonspendable, restricted, committed, assigned and unassigned reported in the City’s Governmental Funds balance sheet at June 30, 2021, are as follows:

Total
General Federa l Housing Special Capital Other Governmental Fund Grants Grants Improvement Governmental Funds Funds Fund balances:

Nonspendable:

Inventories 427,211$ -$ -$ -$ -$ 427,211$ Prepaid expense 55,541 - - - - 55,541 Advance deposits 1,731,882 - - - - 1,731,882 Long-term loans - 81,267,950 - - 70,838,069 152,106,019 Other nonspendable asset - - - - 356,134 356,134 Total Nonspendable 2,214,634 81,267,950 - - 71,194,203 154,676,787 Restricted for:

Section 108 Loan 1,277,452 - - - - 1,277,452 Community development - - - - 42,667,729 42,667,729 Debt service reserve - - - - 1,971,438 1,971,438 General government - - - - 5,167,196 5,167,196 Housing - 4,738,641 - - 76,396,374 81,135,015 Libraries and arts 3,151,328 - - - 8,502,172 11,653,500 Parks and recreation 947,226 - - - 35,204,301 36,151,527 Public safety 9,177 - 2,597,910 - 8,496,467 11,103,554 Solid waste/recycling - - - - 4,522,974 4,522,974 Streets, transit & traffic - - - 27,539,054 4,503,557 32,042,611 Total Restricted 5,385,183 4,738,641 2,597,910 27,539,054 187,432,208 227,692,996 Committed for:

General government operations 77,638,440 - - - - 77,638,440 Total Committed 77,638,440 - - - - 77,638,440 Assigned for:

General government operations 4,526,246 - - - - 4,526,246 Total Assigned 4,526,246 - - - - 4,526,246 Una
ssigned: 41,092,616 - - - 41,092,616 Total Fund Balances 130,857,119$ 86,006,591$ 2,597,910$ 27,539,054$ 258,626,411$ 505,627,085$ 88 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans

The City contributes to three pension plans: The Safety Plan of the City of Stockton; the Miscellaneous Plan of the City of Stockton, which are both part of the Public Agency portion of the California Public Employees’ Retirement System (CalPERS); and the City of Stockton Retirement Enhancement Plan, a customized supplemental retirement plan administered by Public Agency Retirement Services (PARS) for municipal utilities employees, who worked under a private contract between 2003 and 2008.

Summary:

Governmental Business Type
Defer
red Outflows of Resources: Activ ites Activ ities Total Cal PERS :

Safety
Contributions made after measurement date 37,208,895$ - $ 37,208,895$ Change in assumptions 1,451,081 - 1,451,081 Differences between expected and actual experience 8,849,386 - 8,849,386 Difference between projected and actual investment earnings 5,762,126 - 5,762,126 53,271,488 - 53,271,488 Miscellaneous
Contributions made after measurement date 18,593,439 1,770,212 20,363,651 Differences between expected and actual experience 487,952 46,456 534,408 Difference between projected and actual investment earnings 4,154,794 395,563 4,550,357 23,236,185 2,212,231 25,448,416 PARS
Change in assumptions
- 226,884 226,884
Differences between expected and actual experience - 88,882 88,882 - 315,766 315,766 Total Pe
nsions related Deferred Outflows of Resources 76,507,673$ 2,527,997$ 79,035,670$ Net Pension L iability:

Cal PERS :

Safety 388,706,760$ -$ 388,706,760$ M iscellaneous 145,150,775 13,819,266 158,970,041 PARS - 1,954,839 1,954,839 Total Net Pension Liability 533,857,535$ 15,774,105$ 549,631,640$ Deferred Inflows of Resources:

Cal PERS :

Safety
Change in assumptions 1,100,620$ -$ 1,100,620$ Differences between expected and actual experience 5,773,420 - 5,773,420 6,874,040
- 6,874,040
Miscellaneous
Differences between expected and actual experience 4,814,154 458,338 5,272,492 4,814,154 458,338 5,272,492
PARS
Dif
ferences between expected and actual experience - 58,748 58,748 Difference between projected and actual investment earnings - 888,282 888,282 - 947,030 947,030
Total Pension Deferred Inflows of Resources 11,688,194$ 1,405,368$ 13,093,562$ 89 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan

General Information about Pension Plans

CalPERS is an agent multiple-employer agency trust, that acts as a common investment and administrative agent for participating public entities in the State of California and provides retirement, disability and death benefits to plan members and beneficiaries. CalPERS benefits are payable monthly for life in an amount equal to a certain percent of the employee's highest annual salary. Benefit provisions and all other requirements are established by contract with CalPERS, State statute, and City ordinance. Copies of the CalPERS comprehensive annual financial report may be obtained from the CalPERS Executive Office, 400 Q Street, Sacramento, CA, 95811.

PARS is an agent multiple -employer agency trust that acts as a common investment and administrative agent for participating public entities in the State of California. Annual financial reports for the Aggregate Plan may be obtained by contacting PARS directly.

Plan Description – All qualified permanent and probationary employees are eligible to participate in the City of Stockton’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple- employer defined benefit pension plans administered by CalPERS, which acts as a common investment and administrative agent f or its participating member employers. Benefit provisions under the Plans are established by state statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

The Safety Plan is for sworn Police and Fire employees. The contribution requirements of the plan members and the City are established and may be amended by CalPERS.

The Miscellaneous Plan is available to full-time employees not enrolled in the Safety Plan. Part -time employees must meet specific criteria for participation. City employees are eligible for service or normal retirement at age 55 or older with a minimum of fiv e years CalPERS service. The contribution requirements of the plan members and the City are established by CalPERS and may be amended.

Benefits provided – CalPERS provides service retirement and disability benefits, the annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits for public safety employees are calculated based on the employee’s highest earning year for Classic members or as a percentage of the employee’s final 3 -year aver age salary multiplied by the employees’ years of service for (California Employees’ Pension Reform Act of 2013-PEPRA members). Public safety employees with ten years of continuous service are eligible to retire at age 55. Public safety employees may retire at any age after 20 years of service. The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Hire Date Prior to January 1, 2014 After January 1, 2014 Benefit
Vesting Schedule 5 years service 5 years service
Benefit Formula
Tier II Fire: 3% @ 55 years of age
All Other: 3% @ 50 years of age 2.7% @ 57 years of age
Benefit Payments monthly for life monthly for life
Required Employee Contribution Rates 9.00% 12.75%
Required Employer Contribution Rates 59.867% 59.867%
Safety
90 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

General Information about Pension Plans (Continued)

Employees Covered - At June 30, 2020 the following employees were covered under benefit terms:

Contributions – The City establishes rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by the employee 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, 2021, the Safety Plan employer contribution rate was 59.867% of wages . The Miscellaneous Plan was 28.145% of wages.

Net Pension Liability

The City’s net pension liability was measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019, applying standard update procedures.

Hire Date Prior to January 1, 2014 After January 1, 2014 Benefit
Vesting Schedule 5 years service 5 years service
Benefit Formula
Tier I: 2% @ 55 years of age
Tier II: 2% @ 60 years of age 2% @ 62 years of age
Benefit Payments monthly for life monthly for life
Required Employee Contribution Rates 7.00% 6.75%
Required Employer Contribution Rates 28.145% 28.145%
Miscellaneous
Safety Plan Miscellaneous Plan
Inacti
ve employees or beneficiaries currently receiving benefits 890 1519 Inactive employees entitled to but not yet receiving benefits 204 657 Active employees 594 974
1688 3150
91 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

Net Pension Liability (Continued)

Actuarial assumptions – The total pension liability on June 30, 2020, the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Discount rate – The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City contribu tions will be made at rates equal to the difference between actuarially determined contribution rates and the employee rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of currently active and inactive employees. Therefore, the long-term expected rate of return on pension 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 best-estimate ranges of expected future real rates of return are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. CalPERS has approved a change to the discount rate to 7.0% that will be implemented in 2020.

Safety Plan Miscellaneous Plan
Valuation Date 6/30/2019 6/30/ 2019
M easurement Date 6/30/2020 6/30/2020
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.63% 2.63%
Payroll Growth 2.88% 2.88%
Projected Salary Increase Varies (1) Varies (1)
Investment Rate of Return 7.25% (2) 7.25% (2)
M ortality see note (3) see note (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3)
Entry-Age Normal Cost Method
The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 92 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

Net Pension Liability (Continued)

The target allocation and best estimates of real arithmetic rates of return for each major asset class are summarized in the following table:

Changes in the Net Pension Liability

The changes in the Net Pension Liability for each Plan are as follows:

Asset Class
New Strategic
Allocation
Real Return Years
1-10(a)
Real Return Years
11+(b)
Global Equity 53.0% 5.25% 5.75%
Global Fixed Income 28.3% 0.99% 2.43%
Inflation Sensitive 0.0% 0.45% 3.36%
Private Equity 6.3% 6.83% 6.95%
Real Estate 11.3% 4.50% 5.13%
Liquidity 0.9% -0.55% -1.05%
Other 0.2% 4.50% 5.09%
Total 100.00%
Current Safety/Miscellaneous Plans
Total Pension Plan Fiduciary Net Pension
L iability Net Position L iability
(a) (b) (a) - (b)
Balances at 06/30/2019 1,147,079,888$ $ 771,397,822 375,682,066$ Changes for the year:

Service cost 18,438,776 - 18,438,776 Intere
st on total pension liability 79,970,381 - 79,970,381 Changes of Assumption - - - Differences between expected and actual experience (7,219,787) - (7,219,787) Net plan to plan resource movement - - - Contributions-employer - 33,596,802 (33,596,802) Contributions-employee - 7,347,966 (7,347,966) Net investment income - 38,307,390 (38,307,390) Benefit payments, including refunds of employee (61,225,237) (61,225,237) - Administrative expense - (1,087,482) 1,087,482 Other M iscellaneous Income (Expense) - - - Net Changes 29,964,133 16,939,439 13,024,694 Balances at 06/30/2020 1,177,044,021$ 788,337,261$ 388,706,760$ Safety Plan
Increase (Decrease)
93 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

Changes in the Net Pension Liability (Continued)

Sensitivity of the net pension liability to changes in the discount rate – The following presents the net pension liability of the City, calculated using the discount rate of 7.15 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.15 percent) or 1-percentage- point higher (8.15 percent) than the current rate:

Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Total Pension Plan Fiduciary Net Pension
L iability Net Position L iability
(a) (b) (a) - (b)
Balances at 06/30/2019 747,047,973$ $ 590,130,713 156,917,260$ Changes for the year:

Service cost 11,098,178 - 11,098,178 Interest on total pension liability 51,801,795 - 51,801,795 Change
s of Assumption - - - Differences between expected and actual experience (8,567,800) - (8,567,800) Net plan to plan resource movement - - - Contributions-employer - 19,204,043 (19,204,043) Contributions-employee - 4,721,760 (4,721,760) Net investment income - 29,185,528 (29,185,528) Benefit payments, including refunds of employee (39,057,265) (39,057,265) - Administrative expense - (831,939) 831,939 Other M iscellaneous Income (Expense) - - - Net Changes 15,274,908 13,222,127 2,052,781 Balances at 06/30/2020 762,322,881$ 603,352,840$ 158,970,041$ Miscellaneous Plan
Increase (Decrease)
Safety Plan
1%
Decrease
Rate (6.15%)
Current
Discount
Rate (7.15%)
1%
Increase
Rate (8.15%)
Net pension liability 547,914,835$ 388,706,760$ 258,366,583$ Miscellaneous Plan
1%
Decrease
Rate (6.15%)
Current
Discount
Rate (7.15%)
1%
Increase
Rate (8.15%)
Net pension liability 254,765,176$ 158,970,041$ 79,342,954$ 94 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

As of measurement date June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The $37,208,895 and $20,363,651 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2021, will be recognized as a reduction of the net pensi on liability in the year ended June 30, 2022. Other amounts reported as deferred outflows, and deferred inflows of resources related to pensions will be recognized in future pension expense.

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contribution subsequent to measurement date $ 37,208,895 $ - Changes of assumptions 1,451,081 (1,100,620)
Differences between expected and actual experience 8,849,386 (5,773,420) Net differences between projected and actual
earnings on pension plan investments 5,762,126 - Total $ 53,271,488 $ (6,874,040) Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contribution subsequent to measurement date $ 20,363,651 $ - Changes of assumptions - - Differences between expected and actual experience 534,408 (5,272,492) Net differences between projected and actual
earnings on pension plan investments 4,550,357 - Total $ 25,448,416 $ (5,272,492) Safety Plan
Miscellaneous Plan
Deferred
Outflows/(inflows) of
Resources.
$ 2,071,084
1,964,385
2,450,269
2,702,815
-
-
$ 9,188,553
Measurement periods
ended June 30:

Thereafter
2021
2022
2023
2024
2025
Safety Plan
95 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

A. CalPERS Retirement Plan (Continued)

Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)

B. PARS Enhancement Plan

General Information about Pension Plans

Plan Description – The PARS Retirement Enhancement Plan (REP), a closed retirement plan, provides retirement benefits for Municipal Utility Department employees for the period they worked for OMI-Thames Water Stockton, Inc. The City entered into an agreement with Public Agency Retirement Services (PARS) (a public sector retirement plan administrator specializing in providing public entities customized retirement plans and solutions) to contribute to a supplemental plan for employees joining or re -joining City service after having been employed between 2003 and 2008 by OMI-Thames, a private sector utility contractor. OMI-Thames employees did not earn CalPERS service credit during the period OMI-Thames operated the City utilities.

Benefits provided - Upon retirement, the REP benefits will supplement any CalPERS retirement for which those particular employees are eligible. Eligibility for the REP, a single-employer post-employment defined benefit plan, other than employment with OMI -Thames between 2003 and 2008, is defined as concurrent retirement with CalPERS and the City upon attaining age 55 and a minimum of 5 years of full-time continuous service with the City, with at least 1 year of continuous City service after March 1, 2008.

Employees covered - At June 30, 2021, the following employees were covered by the benefit terms:

Deferred
Outflows/(inflows) of
Resources.
(5,366,995)$
(396,267)
3,094,148
2,481,387
-
-
(187,727)$
2025
Thereafter
Misccellaneous Plan
Measurement periods
ended June 30:
2021
2022
2023
2024
PARS Enhancement Plan
Inactive employees or beneficiaries currently receiving benefits 35 Inacti
ve employees entitled to but not yet receiving benefits 0 Active employees 47
82 96

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)

Net Pension Liability

The City’s net pension liability was measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020, using standard update procedures.

Actuarial assumptions – The total pension liability on June 30, 2021, the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Discount rate – The discount rate used to measure the total pension liability was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that employee contri butions will be made at the current contribution rate and that the City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the employee rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of currently active and inactive employees. Therefore, the long-term expected rate of return on pension 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 best-estimate ranges of expected future real rates of return are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

PARS Enhancement Plan
Valuation Date 6/30/2020
Meas
urement Date 6/30/2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.50%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase 3.40% - 10.50% (1)
Investment Rate of Return 6.50%
M ortality see note (2)
(1) Depending on years of service.
(2)
Pre-retirement: Consistent with Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans. Post-Retirement: Consistent with N
on-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30, 2017.
97 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)

Net Pension Liability (Continued)

The target allocation and best estimates of real arithmetic rates of return for each major asset class are summarized in the following table:

Changes in the Net Pension Liability

The changes in the Net Pension Liability for the Plan are as follows:

Asset Class
New Strategic
Allocation
Long-Term
Expected
Arit
hmetic Real
Rate of Return
Long-Term
Expected
Geomet
ric Real
Rate of Return
Cash 0.96% -0.32% -0.32%
Core Fixed Income 46.51% 1.37% 1.26%
Broad US Equities 39.28% 5.33% 3.70%
Developed Foreign Equities 6.82% 6.27% 4.52%
Emerging M arket Equities 4.62% 8.64% 4.95%
REITs 1.81% 5.75% 3.57%
Total 100.00%
PARS Enhancement Plan
Total Pension Plan Fiduciary Net Pension
L iability Net Position L iability
(a) (b) (a) - (b)
Balances at 06/30/2020 12,184,905$ $ 8,755,837 3,429,068$ Changes for the year:

Service cost 132,117 - 132,117 Intere
st on total pension liability 781,943 - 781,943 Effect of economic/demographic gains or losses 120,626 - 120,626 Effect of assumptions changes or inputs - - - Benefit payments (583,450) (583,450) - Employer Contributions - 602,378 (602,378) Net investment income - 1,923,213 (1,923,213) Administrative expense - (16,676) 16,676 Other changes - - - Net Changes 451,236 1,925,465 (1,474,229) Balances at 06/30/2021 12,636,141$ 10,681,302$ 1,954,839$ Increase (Decrease)
PARS Enhancement Plan
98 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

B. PARS Enhancement Plan (Continued)

Sensitivity of the net pension liability to changes in the discount rate – The following presents the net pension liability of the City, calculated using the discount rate of 6.50 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.50 percent) or 1-percentage- point higher (7.50 percent) than the current rate:

Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued REP financial report.

Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2021, the City repor ted deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

For the year ended June 30, 2021, $315,766 was reported as deferred outflows of resources related to earnings and changes of assumptions on pension plan investments, and $947,030 was reported as deferred inflows related to experience, expected and actual experience and will be recognized in future pension expense as follows:

1%
Decrease
Rate (5.50%)
Current
Discount
Rate (6.50%)
1%
Increase
Rate (7.50%)
Net pension liability 3,479,557$ 1,954,839$ 669,753$ PARS Enhancement Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions $ 226,884 $ - Differences between expected and actual experience 88,882 (58,748) Net differences between projected and actual
earnings on pension plan investments - (888,282) Total $ 315,766 $ (947,030) PARS Enhancement Plan
Deferred
Outflows/(inflows) of
Resources.
(68,560)$
(100,481)
(191,419)
(270,804)
-
-
(631,264)$
2024
2025
2026
Thereafter
2022
2023
PARS Enhancement Plan
Measurement periods
ended June 30:
99 ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 11 – Retirement Plans (Continued)

C. Retirement Benefits Fund (Section 115 Trust)

The Retirement Fund is used to make contributions to the California Public Employees’ Retirement System (CalPERS) for the City’s defined benefit programs. Also accounted for in the Retirement Fund are monies in the form of an IRS approved Section 115 Plan, set aside to pay for future payment increases announced by CalPERS.

At the end of fiscal year 2020- 21, the Section 115 Plan, has $68.3 million available to fund the annual liabilit y payments. The Trust is monitored by the Administrative Services and Human Resources Departments.

Note 12 – Claims Payable

The City is exposed to various risks of loss related to liability torts; theft of, damage to, and destruction of assets; errors and omissions; health and medical needs of employees; and natural disasters. The City established three internal service insurance funds (General Liability, Workers’ Compensation, and Employee Health Insurance funds) to account for and finance its self-insured risks of loss. Under the City’s risk management program, the City retains risk for each general liability claim, for each workers’ compensation claim (described under Risk Pools), and for each medical plan member under the health benefits program. The City purchases stop -loss coverage for the health benefits program over its $350,000 self-insured retention (SIR) from Union Labor Life Insurance Company up to a maximum of $1,000,000 per Original Plan member and $2,000,000 per Modified Plan member. The City’s coverage for SIR excess claims for general liability and workers’ compensation is discussed later in this note under risk pools. The workers’ compensation and health benefits programs are administered by third -party claims administrators. The general liability program is self - administered by the City.

The City’s estimated liabilities for claims filed or expected to be filed up to the amounts for which it retains risk in the Internal Service Funds is reported as Self-insurance claims and judgments.

Charges to the General Fund and other funds are determined from an analysis of claims costs and are recorded as expenditures or expenses in the contributing funds and charges for services in the internal service funds. Charges for general liability and workers’ compensation insurances are a percentage of payroll, and the charge for health benefits is a monthly dollar amount for all actively occupied positions.

Independent actuaries perform an analysis of the City’s potential liability for the City’s retained risk portions of the various self-insurance programs. The amounts recorded as liabilities represent estimates of amounts to be paid for reported claims, as well as incurred but not reported claims based on experience, modified for current trends and information. For general liability and workers’ compensation for the current year, the present value of estimated outstanding losses is recognized at a 70% confidence level, using a 2% discount rate to reflect future investment earnings.

While the ultimate amounts of losses incurred through June 30, 20 21 are dependent on future developments, based on information provided by the City Attorney, outside counsel and others involved with the administration of the programs, the City’s management believes that the aggregate accrual is adequate to recognize such losses. There have been no significant reductions in any of the City’s insurance coverage each of the past three years. 100

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 12 – Claims Payable (Continued)

Changes in the balances of the City’s claims liabilities, which include incremental claims adjustments expenses, for the current and prior fiscal years, are as follows:

Risk Pools – The City is a member of two joint powers authorities organized under California Government Code for the purpose of pooling self-insured losses, as described below.

General Liability Insurance - In 1986, the City joined with other municipalities and regional municipal joint powers authorities to form the California Joint P owers Risk Management Authority (CJPRMA), a public entity risk pool currently operating as a general liability risk management and insurance program for 22 member entities. The City’s self-insured retention (SIR) is $1.25 million. Losses above the City’s SIR are pooled up to $5 million per occurrence, with reinsurance above the $5 million up to $40 million by CJPRMA. Specific coverage includes comprehensive and general automotive liability, personal injury, errors and omissions, and certain other coverage.

The CJPRMA governing board is comprised of a representative from each member entity. All members have a single vote for policy and charter changes. An executive committee of seven is elected to handle administration. Members are assessed annual contributions based on actuarially determined rates. CJPRMA retroactively adjusts premium deposits for any excess or deficiency in deposits related to paid claims and reserves. Financial statements for CJPRMA for the fiscal year ended June 30, 2021, can be obtained from CJPRMA at 3201 Doolan Road, Suite #285, Livermore, California 94551.

Property Protection - The City participates in CJPRMA’s All Risks Property Protection Program, which is primarily underwritten by a casualty insurance company. The Program provides $400 million per occurrence in coverage to participating members, subject to a deductible of $100 ,000. Premiums, which are negotiated each year, are based on property values and are not subject to retroactive adjustments.

General Workers’ Health
L iability Compensation Benefits Total
Balance, June 30, 2019 17,109,452$ 47,407,000$ 506,772$ 65,023,224$ Claims incurred 739,468 11,567,766 3,876,169 16,183,403 Claims adjustment -
Claims paid (2,440,579) (7,422,766) (3,945,941) (13,809,286) Balance, June 30, 2020 15,408,341 51,552,000 437,000 67,397,341 Claims incurred (2,607,201) 11,650,192 3,651,216 12,694,207 Claims paid (2,276,514) (7,807,192) (3,692,216) (13,775,922) Balance, June 30, 2021 10,524,626$ 55,395,000$ 396,000$ 66,315,626$ 101

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 12 – Claims Payable (Continued)

Workers’ Compensation Insurance – The City has been self-funded for its Worker’s Compensation Program since 1979.

In July 2003, the City joined California Public Entity Insurance Authority (CPEIA), a public entity risk pool which operated an Excess Workers’ Compensation Program. CPEIA has since merged into an existing authority known as California State Association of Counties Excess Insurance Authorities (CSAC -EIA). The CSAC-EIA was formed in 1979 by 29 California counties for the purpose of pooling risk and providing a viable and cost-effective solution for the counties’ insurance and risk management needs. It has since expanded to allow admittance from cities and other entities which currently includes 95% of the counties in California, nearly 68% of the cities, as well as, numerous school districts, special districts, housing authorities and other Joint Powers Authorities. The City’s self -insured retention is currently set at $500,000 per occurrence. Losses above the City’s SIR are pooled up to $4.5 million per occurrence by the CSAC- EIA. Statutory coverage for losses above $5 million is covered by reinsurance and excess insurance policies throughout CSAC-EIA.

Note 13 – Pollution Remediation Obligations

GASB Statement No. 49 requires the former Agency, now Successor Agency, to report a pollution remediation liability upon the occurrence of an obligating event, such as being compelled by a regulatory agency or legal action to clean up existing pollution. T he liability is estimated based on the expected future cash flows technique (i.e., the sum of the probability-weighted amounts in a range of possible estimated amounts). Only components of the liability (e.g., site assessment, site investigation, corrective measures feasibility study, remediation design, remediation operations and maintenance, and post-remediation monitoring) which can be reasonably estimated are included in the estimated liability.

Expected recoveries from insurers and other responsible parties reduce the estimated liability.

Actual pollution remediation costs may vary from the estimated liability for many reasons, including changes in pollution laws and regulations, the technology used for the cleanup, the remediation plan or operating conditions, prices of products and services.

The former Agency, now Succ essor Agency, has identified the UNOCAL site along the Stockton channel that are designated “Brownfields” by the U.S. Environmental Protection Agency, with the goal of revitalizing co ntaminated properties that the Successor Agency currently owns in the area near Stockton's downtown waterfront in the Waterfront Redevelopment Project Area. The following are details of the Successor Agency-owned contaminated site, including a description of the pollution, the obligating event requiring remediation action, estimable remediation costs components, and recoveries by responsible parties. Details of the liabilities as of June 30, 2021, are also discussed.

To provide clarification of the following discussion, the California Polanco Redevelopment Act (AB 3193, Chapter 1113, Statutes of 1990, Polanco), part of the Community Redevelopment Act, was enacted by the California legislature to assist redevelopment agencies in responding to brownfield properties in their redevelopment areas. It prescribes processes for redevelopment agencies to follow when cleaning up a hazardous substance release in a redevelopment project area. It also provides immunity from liability for redevelopment agencies and subsequent property purchases for sites cleaned up under a cleanup plan approved by the California Department of Toxic Substances Control or a Regional Board.
102

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 13 – Pollution Remediation Obligations (Continued)

The following provides a discussion of the identified brownfield sites of the Successor Agency:

Area 2A-Unocal – Soil and groundwater contamination has been identified in Area 2A-Unocal associated with total petroleum hydrocarbons, volatile and semi-volatile organic compounds. The obligating event for this site stems from a Polanco agreement notice issued to the responsible party, currently in negotiation for settlement. Estimated costs are for a consultant, legal and City personnel costs for cleanup of the soil contam ination, and pre -cleanup and investigative study of the site about the groundwater contamination. Future groundwater cleanup and ongoing post- remediation monitoring costs cannot be reasonably estimated. The net pollution remediation liability of this site as of June 30, 2021, is $431,250, which includes an estimated recovery of costs by the responsible party.

The total net estimated net pollution remediation liability for the site in the amount of $275,000, is reported to the Successor Agency as of June 30, 2021.

Note 14 – Individual Fund Disclosures

Deficit Fund Balances

At June 30, 2021, the following funds had net positions or fund balance deficits:

• The Worker’s Compensation Fund has an accumulated deficit fund balance of $4,130,355 as of June 30, 2021, resulting in a n increase reduction from the prior year. The City has historically budgeted revenues and projected expenditures in the Fund based on an expected confidence level, while the liability is based on a 70% confidence level. Contributions to cover claims expenditures are based on a percentage of payroll based upon city-wide loss experience. As a result, past contributions have been insufficient to cover the outstanding estimated future claims. On an accrual basis of accounting, the Fund has a long-term liability of $45,033,000 for claims and judgments while the cash balance of the fund as of June 30, 2021, is $41,260,040. The City will continue to use actuaries to assist in analyzing claim data and projecting claim costs.

• The Successor Agency to the Redevelopment Agency Private Purpose Trust Fund has an accumulated deficit fund balance of $59,008,834 as of June 30, 2021. This is an Agency Private Purpose Trust fund and not included in the City’s net position. The fund has a bonds payable balance that causes the fund balance deficit.

• The Parking Authority Fund has an accumulated deficit fund balance of $5,579,757 as of June 30,2021. This is due to an interfund loan borrowing from the Worker’s Compensation Fund for $8,915,000. It is in relation to the payoff of the 2006 Series A ESB bonds previously held in the City’s Debt Service Fund. The loan terms are set at 2%, biannual payments with anticipated payoff date of February 1, 2032.

Fund Fund Type Deficit
Workers' Com pensation Internal Service Fund (4,130,355)$ Successor Agency Private Purpose Trust Fund (59,008,834) Central Parking Enterprise Fund (5,579,757)
103

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 15 – Commitments and Contingencies

Contingent Liability – Pending Litigation

Various claims and legal actions are pending against the City, some of which have a reasonable possibility of an unfavorable outcome. These legal actions involve property, personal injury, and civil rights claims. GASB Statement No. 62 requires disclosure of pending litigation for which contingency is possible, and the amount cannot be reasonably estimated. As discussed in Note 12, the City is self-insured and has accrued a liability for estimated claims outstanding.

Amounts for the claims , which cannot be reasonably estimated at this time, have not been included in the financial statements. Management, after consultation with legal counsel, is of the opinion that ultimate disposition of these matters will not have a material adverse effect on the City’s financial position or results of operations.

Capital Commitments

The City is undertaking some capital improvement projects, the most significant of which include the following outstanding capital commitments at June 30, 2021:

Operating Leases

Operating lease obligations are primarily for rental of parking facilities space, but other lease obligations are included.

Future minimum lease payments under non-cancelable operating leases with initial or remaining terms of a year or more are as follows:

Amount
Regional Wastewater Control Facility 14,804,275$
NE M
cNair Library/Rec Center 13,994,881
Developer Reimbursements 5,598,041
Miner Ave Comp St. Impr Phase 3 5,606,134
Miner Ave Comp St. Impr Phase 1 1,440,317
Thornton, Hammer, Lower Sac Impr 1,100,074
42,543,722$
Year E nded
June 30, Amount
2022 352,543$
2023 306,624
2024 125,076
2025 129,800
2026 134,760
2027-2031 757,329
2032-2036 924,294
Total 2,730,426$
104

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 15 – Commitments and Contingencies (Continued)

Encumbrances

The City utilizes encumbrance accounting as a means of controlling expenditures. Under this method, funds are encumbered when purchase orders, contracts, and other commitments are signed or approved by authorized City officials. Such outstanding commitments at the end of the year do not constitute expenditures or liabilities under GAAP.

GASB Statement No. 54 provides additional guidance on the classification within the fund balances section of amounts that have been encumbered. Encumbrances of balances within the governmental funds are classified as either committed, restricted, or assigned and are included in the respective classification. Outstanding encumbrances at June 30, 2021, are as follows:

Facilities Management Agreement

On March 20, 2018 the Stockton City Council approved the amendment of the current Facilities Management Agreement (Agreement) with SMG (now referred to as ASM) to include the Downtown Marina operations, extend the terms of the existing agreement and to include vendor performance benchmarks. ASM provides operation management and marketing services to the City for the Stockton. Events Center includes a multi-purpose indoor arena, a baseball park, the Events Center common areas, the Bob Hope Theatre, Oak Park Ice Arena and the Downtown Marina.

The current agreement will extend the terms until 2026 and may be renewed at the option of the City for one additional five-year period. Either party may terminate the Agreement for cause during the agreement period due to a mat erial breach by the other party or for default.

ASM is responsible for operating these facilities in keeping with the management goals set and approved each year by the City Council, with the overarching goal of having the facilities operating revenues exceed the respective operating expenses.

ASM is required to provide various fidelity and performance bonds, which includes various types of coverage in the amount of $1,000,000. This coverage extends to the areas of Commercial General and Automobile Liability, Professional Errors and Omissions, Crime, Employment and Worker’s Compensation. Additionally, there is an Umbrella Liability coverage requirement of $5,000,000.

Compensation to ASM is determined from a base fee for all venues, plus performance-based compensation, as defined in the Agreement. Both components are eligible for periodic adjustments based on the consumer price index (CPI).

Financial activities of ASM, as a service organization, is combined with and reported in the General Fund.

Am ount
G eneral Fund 7,982,718$
Cap
ital Im provem ents 35,308,381$
Other G overnm ental Funds 22,672,131$
105

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 16 – Restricted Net Position

At June 30, 2021, restricted net position consisted of the following:

Note 17 – Subsequent Events

Issuance of Debt with net revenue commitment from Wastewater Utility

Draw of Funds from Environmental Protection Agency WIFIA Loan

On September 30, 2020, the Stockton Public Financing Authority entered into a loan agreement with the US Environmental Protection Agency for a Water Infrastructure Finance and Innovation Act (“WIFIA”) loan in the amount of $108,000,000. The notes were issued to provide longer - term financing of the first phase of the sewer plant improvement project that is needed to comply with government requirements. Funds were drawn in November 2021 and in combination with $10.5 million in cash on hand, were used to prepay the 2019 Bond Anticipation Notes on December 1, 2021, thus locking in long term financing for this portion of the project at a rate of 1.20%. The debt is issued on parity with bonds issued in 2014 by the Wastewater system and both are secured by a pledge of net revenues of the Utility Fund. Payments on the WIFIA loan begin on March 1, 2022 and continue until March 1, 2051when final payment is made.

Governmental
Activ ities
Business -Type
Activ ities Totals
Restricted:

Capital projects 27,539,054$ 31,553,090$ 59,092,144$ Debt service 1,971,438 14,687,660 16,659,098 M easure AB 9,177 - 9,177 Section 108 loan 1,277,452 - 1,277,452 Community Development 42,896,120 - 42,896,120 General government 6,612,108 - 6,612,108 Housing 164,360,799 - 164,360,799 Library and arts 12,009,634 - 12,009,634 Parks and recreation 36,151,527 - 36,151,527 Public safety 16,584,554 - 16,584,554 Solid waste/recycling 4,522,974 - 4,522,974 Streets, transit and traffic 76,634,928 - 76,634,928 Pension 68,079,946 - 68,079,946 Total restricted 458,649,711$ 46,240,750$ 504,890,461$ 106

ATTACHMENT A
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021

Note 18 – Prior Period Adjustments

Federal Housing Other To t a l
Grant Special Gov ernmental Gov ernmental F iduciary F unds Rev enue F und F unds F unds Custodial F unds
Net Position at July 1, 2020 3,260,921$ 161,397,969$ 304,725,466$ -$ Required by GASB 84 - Fiduciary Act ivit ies - - - 44,517,999 Correction of G AS B 54 and 65 Implementation 81,267,949 70,838,069 152,106,018 - Net Position at July 1, 2020, as restated 84,528,870 232,236,038 456,831,484 44,517,999 107

ATTACHMENT A

REQUIRED SUPPLEMENTARY INFORMATION

ATTACHMENT A

ATTACHMENT A
City of Stockton
Required Supplementary Information
(Unaudited) For the year ended June 30, 2021

1. Budgetary Information

Budget Process

In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. Total Appropriations shall not exceed the total of estimated revenues, estimated unencumbered balances of funds to be carried over from the preceding year and unencumbered available fund balances. The General Fund, Federal Housing grants Special revenue Fund, Special grants Special Revenue Fund, and certain nonmajor special revenue funds (Solid Waste and Recycling, Gas Tax, Measure K Streets Sales Tax, Measure W Public Safety Sales Tax, Special Assessments, Development Services, and Other Special Revenue) and certain capital projects funds (Public Facilities Impact Fees and Capital Improvement) have legally adopted annual budgets. Prior to July 1, the original adopted budget is legally enacted through the passage of a resolution by the City Council. In the event this does not occur, the City Manager’s draft budget is in force until a budget is adopted by the City Council.

Enterprise and internal service funds are accounted for on a cost of service (net income) or capital maintenance measurement focus. The City is not legally mandated to repor t the results of operations for these fund types on a budgetary comparison basis; therefore, budgetary data related to these funds has not been presented.

If expenditures exceed appropriations at the department level for the General Fund or at the fund level for all other funds, the City Manager is authorized to transfer budgeted amounts between line items within any fund. During the year, the City Council approves supplemental appropriations and, by resolution, has also authorized the City Manager to transfer fund balances to applicable appropriation accounts, or to transfer between funds, when necessary to continue purposes approved by the City Council in the current year, adopted budget, or subsequent action.

Amounts reported as final budget in the Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – On a Budgetary Basis include amendments authorized throughout the year.

Formal budgetary integration is employed as a management control device during the year for the General Fund and certain Special Revenue and Capital Projects Funds. Formal budgetary integration is not empl oyed for the Debt Service Funds because effective budgetary control is alternately achieved through bond indenture provisions.

All un
encumbered appropriations lapse at year -end, with the exception of capital improvement projects and miscellaneous grants in the respective funds. Encumbered appropriations are re-appropriated in the following year’s budget.
108

ATTACHMENT A
City of Stockton
Required Supplementary Information
(Unaudited) For the year ended June 30, 2021

1. Budgetary Information (Continued)

Budget Basis of Accounting

The City adopts budgets each fiscal year on a basis of accounting, which is different from accounting principles generally accepted in the United States of America (GAAP).

The statements of revenue, expenditures and changes in fund balances have been prep ared on the modified accrual basis of accounting in accordance with GAAP. The schedules of revenues, expenditures and changes in fund balances – budget and actual – on a budgetary basis have been prepared on the budgetary basis, which is different from GAAP.

The variations from GAAP that are for budgetary purposes include the following:

Outstanding commitments relating to construction contracts and other purchases of goods and services are recorded as expenditures at the time contracts or purchase agreeme nts are entered into. Under GAAP, these obligations are recognized when goods are received or services are rendered.

The write-off uncollectable accounts receivables is not recognized as an expenditure. Under GAAP, these write- offs are recognized as expenditures when the accounts receivables are determined to be uncollectable.

Certain funds of the City contain capital projects, grant projects, loan programs or other programs that are budgeted on a multi-year or project length basis. The amounts of the projects and programs budgeted on a multi-year basis are significant compared to the items budgeted on an annual basis; therefore, a comparison of budget to actual for the fund would not be meaningful. As a result, such funds are excluded from budgetary reporting. 109

ATTACHMENT A

110

ATTACHMENT A
Budgetary Comparison Schedule - General Fund
Variance with
Original Final Actual Final Budget
REVENUES:

Taxes:

Property 37,023,000$ 37,023,000$ 38,522,990$ 1,499,990$ Utility user 32,780,000 32,780,000 36,413,826 3,633,826 Sales - levied by City 28,472,000 28,472,000 40,810,516 12,338,516 Franchise fees 14,192,630 14,192,630 16,900,562 2,707,932 Business license 9,500,000 9,500,000 14,090,618 4,590,618 Hotel/motel room 2,609,000 2,609,000 2,860,447 251,447 Document transfer 780,000 780,000 1,221,516 441,516 Other 2,290,058 2,290,058 2,873,644 583,586 Licenses and permits 530,538 529,854 566,109 36,255 Intergovernmental:

Federal grants and subsidies 186,429 374,503 219,700 (154,803) Sales and use tax - levied by state 44,831,000 44,831,000 65,200,850 20,369,850 Other governmental 39,331,788 39,331,788 39,246,217 (85,571) Charges for services 9,796,423 9,796,423 9,541,329 (255,094) Fines and forfeitures 1,311,559 1,311,559 282,885 (1,028,674) Use of money and property 9,766,529 9,766,529 4,625,139 (5,141,390) Investment income:

Interest income 2,260,811 2,260,811 6,788,272 4,527,461 Refunds and reimbursements 167,211 213,809 438,105 224, 296 Miscellaneous 5,318,101 5,328,101 5,793,626 465,525 241,147,077 241,391,065 286,396,351 45,005,286 EXPENDITURES:

General government:

City council 994,080 1,198,444 976,555 221,889
City manager 2,220,749 2,283,441 2,118,291 165,150
City attorney 1,336,877 1,336,939 1,217,832 119,107
City clerk 1,001,530 1,020,149 970,558 49,591
City auditor 592,525 936,173 366,505 569,668
Administrative services 8,361,613 8,463,433 7,602,087 861,346 Hu
man resources 2,481,795 2,529,814 1,889,933 639,881
Housing 11,582,757 14,251,466 5,299,799 8,951,667
Non-departmental 1,377,986 2,021,363 5,793,746 (3,772,383) Total general government 29,949,912 34,041,222 26,235,306 7,805,916 Budget
City of Stockton
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budgetary Comparison Schedule
See accompanying Notes to the Basic Financial Statements.

111

ATTACHMENT A
Budgetary Comparison Schedule - General Fund (Continued) Variance with
Original Final Actual Final Budget
Public safety:

Police 138,123,711 138,700,988 129,978,279 8,722,709
Fire 52,246,029 52,641,467 50,953,832 1,687,635
Total public safety 190,369,740 191,342,455 180,932,111 10,410,344 Public works 16,015,900 18,983,102 15,934,338 3,048,764 Library 12,272,822 12,553,244 10,558,356 1,994,888 Parks and recreation 4,624,693 4,914,499 3,907,364 1,007,135 Capital Outlay 1,016,424 2,785,808 611,717 2,174,091 Debt Service:

Interest and fiscal charges - - 15,980 (15,980) Total expenditures 254,249,491 264,620,330 238,195,172 26,425,158

DEFICIENCY OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (a) (13,102,414) (23,229,265) 48,201,179 71,430,444 OTHER FINANCING SOURCES (USES):

Transfers out (12,839,175) (32,137,367) (31,961,460) 175,907 Sale of capital assets 100,000 100,000 6,095 (93,905) Capital contribution 368,000 368,000 - (368,000) Total other financing sources (uses) (12,371,175) (31,669,367) (31,955,365) (285,998)

NET CHANGE IN FUND BALANCE
(GAAP BASIS) (25,473,589)$ (54,898,632)$ 16,245,814 71,144,446$ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above) (a)* (7,982,718) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 8,263,096
FUND BALANCE, BEGINNING OF YEAR 114,611,305
FUND BALANCE, END OF YEAR 122,874,401$
* Adjusted to Budgetary Basis.

The note to the required supplementary information is an integral part of this schedule.

Budget
City of Stockton
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budgetary Comparison Schedule
See accompanying Notes to the Basic Financial Statements.

112

ATTACHMENT A
Budgetary Comparison Schedule - Federal Housing Grants Special Revenue Fund Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies 5,022,523$ 11,898,547$ 4,426,326$ (7,472,221)$ Charges for services 1,575 1,575 2,625 1,050 Use of money and property 405,000 1,417,137 836,255 (580,882) Investment income:

Interest income (loss) - - (31,853) (31,853) Miscellaneous 1,946,738 1,946,738 1,946,739 1 Total revenues 7,375,836 15,263,997 7,180,092 (8,083,905) EXPENDITURES:

General government 5,589,325 13,920,592 3,461,685 10,458,907 Capital outlay 325,000 325,000 - 325,000 Debt service:

Principal retirement 1,675,000 1,675,000 1,675,000 - Interest and fiscal charges 176,338 176,338 176,338 - Total expenditures 7,765,663 16,096,930 5,313,023 10,783,907

DEFICIENCY OF REVENUES OVER
EXPENDITURES (GAAP BASIS) (389,827) (832,933) 1,867,069 2,700,002 OTHER FINANCING (USES):

Transfers out (389,348) (389,348) (389,348) - Total other financing (uses) (389,348) (389,348) (389,348) - NET CHANGE IN FUND BALANCE (GAAP BASIS) (779,175)$ (1,222,281)$ 1,477,721 2,700,002$ BASIS ADJUSTMENT:

Encumbrances (1,293,424)
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 184,297
FUND BALANCE, BEGINNING OF YEAR, AS RESTATED (NOTE 18) 84,528,870 FUND BALANCE, END OF YEAR 84,713,167$
The note to the required supplementary information is an integral part of this schedule.

Budget
For the Year Ended June 30, 2021
City of Stockton
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
See accompanying Notes to the Basic Financial Statements.

113

ATTACHMENT A
Budgetary Comparison Schedule - Special Grants Special Revenue Fund Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies 292,582$ 47,860,825$ 19,733,363$ (28,127,462)$ Other governmental - 25,844,138 24,153,199 (1,690,939) Investment income:

Interest income - - 769,282 769,282 Miscellaneous - 30,000 10,347 (19,653) Total revenues 292,582 73,734,963 44,666,191 (29,068,772) EXPENDITURES:

Current
General government 292,582 60,979,139 29,295,867 31,683,272 Public safety - 8,859,698 9,490,213 (630,515) Public works - 458,665 1,347,142 (888,477) Library - 63,958 104,048 (40,090) Parks and recreation - 876,984 1,293,138 (416,154) Capital outlay - 4,678,961 2,393,407 2,285,554 Total expenditures 292,582 75,917,405 43,923,815 31,993,590

DEFICIENCY OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) - (2,182,442) 742,376 2,924,818 OTHER FINANCING SOURCES:

Transfers in - 208,093 10,093 (198,000) Capital contribution - - - - Total other financing sources - 208,093 10,093 (198,000) NET CHANGE IN FUND BALANCE (GAAP BASIS) -$ (1,974, 349)$ 752,469 2,726,818$ BASIS ADJUSTMENT:

Encumbrances (8,169,803)
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (7,417,334) FUND BALANCE, BEGINNING OF YEAR 1,845,441
FUND BALANCE, END OF YEAR (5,571,893)$
The note to the required supplementary information is an integral part of this schedule.

Budget
City of Stockton
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2021
Budgetary Comparison Schedule
See accompanying Notes to the Basic Financial Statements.

114

ATTACHMENT A
City of Stockton
Required Supplementary Information
For the Year Ended June 30, 2021
Schedule of Changes in the City's Net Pension Liability and Relations Ratios for the Measurement Periods Ended June 30 CalPERS Safety Plan Measurement Date
2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service cost 18,438,776$ 18,340,749$ 17,684,602$ 15,401,471$ 13,548,998$ 13,593,233$ 13,907,523$ Interest 79,970,381 77,850,318 75,078,142 71,053,021 69,765,169 67,693,599 65,730,714 Changes of benefit terms - - - - - - - Changes of assumptions - - (3,852,172) 59,494,381 - (16,908,140) - Differences between expected and actual experience (7,219,787) 2,178,151 26,895,156 (9,538,805) (3,570,311) (5,410,590) - Benefit payments, including refunds of employee contributions (61,225,237) (57,512,870) (55,481,650) (53,205,686) (51,615,173) (49,614,935) (47,761,534) Net change in total pension liability 29,964,133 40,856,348 60,324,078 83,204,382 28,128,683 9,353,167 31,876,703 Total pension liability - beginning 1,147,079,888 1,106,223,540 1,045,899,462 962,695,080 934,566,397 925,213,230 893,336,527 Total pension liability - ending (a) 1,177,044,021$ 1,147,079,888$ 1,106,223,540$ 1,045,899,462 962,695,080$ 934,566,397$ 925,213,230$ Plan fiduciary net position
Contributions - employer
33,596,802 29,781,351 26,124,666 23,342,334 20,338,253 17,178,961 13,818,051 Contributions - employee 7,347,966 7,139,569 6,942,272 6,617,527 5,940,342 5,896,729 6,449,394 Net investment income 38,307,390 48,529,461 59,476,319 73,783,913 3,348,803 15,155,169 105,163,288 Benefit payments, including refunds of employee contributions (61,225,237) (57,512,870) (55,481,650) (53,205,686) (51,615,173) (49,614,935) (47,761,534) Plan to plan resource movement - - (7,168) - - 3,305 - Administrative expense (1,087,482) (530,927) (1,106,599) (975,302) (416,243) (771,300) - Other - 1,732 (2,101,449) - - - - Net change in plan fiduciary net position 16,939,439$ 27,408,316$ 33,846,391$ 49,562,786$ (22,404,018)$ (12,152,071)$ 77,669,199$ Plan fiduciary net position - beginning 771,397,822 743,989,506 710,143,115 660,580,329 682,984,347 695,136,418 617,467,219 Plan fiduciary net position - ending (b) 788,337,261$ 771,397,822$ 743,989,506$ 710,143,115 660,580,329$ 682,984,347$ 695,136,418 City's net pension liability - ending (a) - (b) 388,706,760$ 375,682,066$ 362,234,034$ 335,756,347 302,114,751$ 251,582,050$ 230,076,812$ Plan fiduciary net position as a percentage of the total pension liability

66.98% 67.25% 67.25% 67.90% 68.62% 73.08% 75. 13%
Covered - employee payroll 60,894,239$ 59,708,789$ 56,947,904$ 48,429,252$ 47,115,477$ 46,710,538$ 45,422,701$ City's net pension liability as a percentage of covered employee payroll
638.33% 629.19% 636.08% 693.29% 636.08% 538.60% 506.52% Notes to Schedule:

Benefit changes: The figures above include any liability impact that may have resulted from voluntary plan changes which occurred after June 30, 2019 valuation date. However, offers of Two Years Additional Service Credit (a.ka. Golden Handshakes) that occured after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017.

See accompanying Notes to the Basic Financial Statements.

115

ATTACHMENT A
City of Stockton
Required Supplementary Information
For the Year Ended June 30, 2021
CalPERS Miscellaneous Plan Measurement Date
2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service cost 11,098,178$ 11,446,572$ 11,500,131$ 10,871,947$ 9,240,648$ 9,145,587$ 9,440,824$ Interest 51,801,795 50,718,177 48,873,856 48,291,460 48,179,529 47,148,768 46,152,921 Changes of benefit terms - - - - - - - Changes of assumptions - - (19,696,405) 39,356,599 - (11,281,319) - Differences between expected and actual experience (8,567,800) 2,061,288 3,486,532 (17,662,863) (8,961,502) (10,000,256) - Benefit payments, including refunds of employee contributions (39,057,265) (37,477,251) (35,750,319) (34,494,172) (34,150,397) (33,662,380) (32,763,729) Net change in total pension liability 15,274,908$ 26,748,786$ 8,413,795$ 46,362,971$ 14,308,278$ 1,350,400$ 22,830,016 Total pension liability - beginning 747,047,973 720,299,187 711,885,392 665,522,421 651,214,143 649,863,743 627,033,727 Total pension liability - ending (a) 762,322,881$ 747,047,973$ 720,299,187$ 711,885,392$ 665,522,421$ 651,214,143$ 649,863,743$ Plan fiduciary net position
Contributions - employer
19,204,043 17,112,542 15,252,226 13,189,681 13,879,482 10,783,508 9,402,881 Contributions - employee 4,721,760 4,540,503 4,729,377 4,386,770 3,971,944 3,802,226 3,761,959 Net investment income 29,185,528 37,027,715 45,626,430 56,250,959 2,491,249 11,522,892 79,512,728 Benefit payments, including refunds of employee contributions (39,057,265) (37,477,251) (35,750,319) (34,494,172) (34,150,397) (33,662,380) (32,763,729) Plan to plan resource movement - - 4,111 - 933 (13,377) - Administrative expense (831,939) (406,288) (844,458) (743,130) (315,359) (599,978) - Other - 1,325 (1,603,640) - - - - Net change in plan fiduciary net position 13,222,127 20,798,546 27,413,727$ 38,590,108 (14,122,148)$ (8,167,109)$ 59,913,839$ Plan fiduciary net position - beginning 590,130,713 569,332,167 541,918,440 503,328,332 517,450,480 525,617,589 465,703,750 Plan fiduciary net position - ending (b) 603,352,840 590,130,713 569,332,167 541,918,440 503,328,332 517,450,480 525,617,589 City's net pension liability - ending (a) - (b) 158,970,041$ 156,917,260$ 150,967,020$ 169,966,952$ 162,194,089$ 133,763,663$ 124,246,154$ Plan fiduciary net position as a percentage of the total pension liability

79.15% 79.00% 79.04% 76.12% 75.63% 79.64% 80. 88%
Covered - employee payroll 67,099,018 67,851,642 67,079,626$ 61,357,565$ 56,400,439$ 53,997,677$ 52,603,907$ City's net pension liability as a percentage of covered employee payroll
236.92% 231.27% 225.06% 277.01% 287.58% 247.72% 236.19% Schedule of Changes in the City's Net Pension Liability and Relations Ratios for the Measurement Periods Ended June 30 (Continued) Notes to Schedule:

Changes of assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017.

See accompanying Notes to the Basic Financial Statements.

116

ATTACHMENT A
City of Stockton
Required Supplementary Information
For the Year Ended June 30, 2021
PARS Enhancement Plan Measurement Date
2021 2020 2019 2018 2017 2016 2015
Total pension liability
Service cost 132,117$ 155,670$ 151,504$ 138,078$ 134,056$ 150,623$ 145,882$ Interest 781,943 759,727 706,545 730,559 701,117 680,023 650,386 Changes of benefit terms - - - - - Differences between expected and actual experience - - - - - Demographic gains/losses 120,626 - (156,665) (110,133) - Changes of assumptions - - 605,028 - - Benefit payments, including refunds of employee contributions (583,450) (517,711) (467,860) (429,654) (407,870) (397,530) (358,380) Net change in total pension liability 451,236 397,686 838,552 438,983 317,170 433,116 437,888 Total pension liability - beginning 12,184,905 11,787,219 10,948,667 10,509,684 10,192,514 9,759,398 9,321,510 Total pension liability - ending (a) 12,636,141 12,184,905 11,787,219$ 10,948,667 10,509,684$ 10,192,514$ 9,759,398$ Plan fiduciary net position
Contributions - employer
602,378$ 803,170$ 753,296$ 941,620$ 528,894$ 705,192$ 751,157 Contributions - employee - - - - - - - Net investment income 1,923,213 272,545 482,222 409,596 596,724 8,851 124,454 Benefit payments, including refunds of employee contributions (583,450) (517,711) (467,860) (429,654) (407,870) (397,530) (358,380) Administrative expense (16,676) (15,254) (14,506) (13,992) (13,097) (43,490) (966) Other - - - - - - - Net change in plan fiduciary net position 1,925,465 542,750 753,152$ 907,570$ 704,651$ 273,023$ 516,265$ Plan fiduciary net position - beginning 8,755,837 8,213,087 7,459,935 6,552,365 5,847,714 5,574,691 5,058,426 Plan fiduciary net position - ending (b) 10,681,302$ 8,755,837$ 8,213,087 7,459,935 6,552,365 5,847,714 5,574,691 City's net pension liability - ending (a) - (b) 1,954,839$ 3,429,068$ 3,574,132$ 3,488,732$ 3,957,319$ 4,344,800$ 4,184,707$ Plan fiduciary net position as a percentage of the total 84.53% 71.86% 69.68% 68.14% 62.35% 57.37% 57.12% pension liability
Covered - employee payroll
2,966,110$ 2,784,812$ 3,446,204$ 3,427,436$ 3,327,608$ 3,454,139$ 3,610,315$ City's net pension liability as a percentage of covered employee payroll

65.91% 123.13% 103.71% 101.79% 118.92% 125.79% 115.91%
Schedule of Changes in the City's Net Pension Liability and Relations Ratios for the Measurement Periods Ended June 30 (Continued) See accompanying Notes to the Basic Financial Statements.

117

ATTACHMENT A
Schedule of Changes in the City's Plan Contribution for the Measurement Periods Ended June 30 CalPERS Safety Plan
2020 2019 2018 2017 2016 2015 2014
Actuarially determined contribution 33,596,802$ 29,781,351$ 26,124,666$ 23,342,334$ 20,338,253$ 17,178,961 13,818,051 Contributions in relation to the actuarially determined (33,596,802) (29,781,351) (26,124,666) (23,342,334) (20,338,253) (17,178,961) (13,818,051) contribution
Contribution deficiency (excess) -$ -$ -$ -$ -$ - - Covered - employee payroll 60,894,239 59,708,789 56,947,904$ 48,429,252$ 47, 115,477$ 46,710,538 45,422,701 City's Contributions as a percentage of covered employee payroll 55.17% 49.88% 45.87% 48.20% 43.17% 36.78% 30.42% SAFTEY PLAN:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal.

Amortization method/Period For details, see June 30, 2017 Funding Valuation Report.

Asset valuation method Market Value of Assets. Varies, see June 30, 2017.

Funding Valuation Report.

Inflation 2.63%
Salary increases Varies by entry age and service.

Payroll Growth 2.88%
Investment rate of return 7.25%, net of pension plan investment and administrative expense, including inflation.

Retirement age The probabilites of Retirement are based on the 2017 CalPERS Experience Study for the period
from 1997 to 2015.

Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997
to 2015. Pre-retirement and post-retirement mortality
rates include 15 years of projected mortality improvement using 90% Scale MP-2016 published by the Society of Actuaries.

City of Stockton
Required Supplementary Information
For the Year Ended June 30, 2021
Fiscal Year
See accompanying Notes to the Basic Financial Statements.

118

ATTACHMENT A
City of Stockton
Required Supplementary Information
For the Year Ended June 30, 2021
Schedule of Changes in the City's Plan Contribution for the Measurement Periods Ended June 30 (Continued) CalPERS Miscellaneous Plan
2020 2019 2018 2017 2016 2015 2014
Actuarially determined contribution 19,204,043$ 17,112,542$ 15,252,226$ 13,189,681$ 12,545,482$ 10,783,518 9,402,881 Contributions in relation to the actuarially determined (19,204,043) (17,112,542) (15,252,226) (13,189,681) (13,879,482) (10,783,518) (9,402,881) contribution
Contribution deficiency (excess) -$ -$ -$ -$ (1,334,000)$ - - Covered - employee payroll 67,099,018$ 67,851,642$ 67,079,626$ 61, 357,565$ 56,400, 439$ 53, 997,677 52, 603,907 City's Contributions as a percentage of covered employee payroll 28.62% 25.22% 22.74% 21.50% 24.61% 19.97% 17.87% MISCELLANEOUS PLAN:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal.

Amortization Method/Period Varies, see June 30, 2017 Funding Valuation Report.

Asset valuation method Market Value of Assets. Varies, see June 30, 2017 Funding Valuation Report.

Inflation 2.63%
Salary increases Varies by entry age and service.

Payroll Growth 2.88%
Investment rate of return 7.25%, net of pension plan investment and administrative expense, including inflation.

Retirement age The probabilites of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997-2015.

Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997-2015.

Fiscal Year
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

See accompanying Notes to the Basic Financial Statements. 119

ATTACHMENT A
City of Stockton
Required Supplementary Information
For the Year Ended June 30, 2021
Schedule of Changes in the City's Plan Contribution for the Measurement Periods Ended June 30 (Continued) PARS Enhancement Plan
2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 803,170$ 803,170$ 753,296$ 753,296$ 705,192$ 705,192 700,451 Contributions in relation to the actuarially determined - - - - - - - contribution (602,378) (803,170) (753,296) (941,620) (528,894) 705,192 (751,157) Contribution deficiency (excess) 200,792$ -$ -$ (188,324)$ 176,298$ - (50,706) Covered - employee payroll 2,966,110$ 2,784,812$ 3,446,204$ 3,427,436$ 3, 327,608$ 2,454,139 3,610,315 City's Contributions as a percentage of covered employee payroll 20.31% 28.84% 21.86% 27.47% 15.89% 20.42% 20.81% ENHANCEMENT PLAN:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal.

Amortization method Level dollar, closed.

Remaining amortization period 7.67 years
Asset valuation method None
Inflation 2.50%
Salary increases Varies by entry age and service.

Investment rate of return 6.50%
Retirement age Consistent with those used to value the Miscellaneous CalPERS Pension Plans 2.7% at age 55. The rates used
are those for retirees with 20 years of service, with an increased retirement rate of 20% at age 55.

Mortality
Fiscal Year
Pre-retirement: Consistent with Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30, 2017. Post-Retirement: Consistent with Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans after June 30 ,2017.

See accompanying Notes to the Basic Financial Statements.

120

ATTACHMENT A

121

ATTACHMENT A

NONMAJOR GOVERNMENTAL FUNDS

ATTACHMENT A

SPECIAL REVENUE FUNDS
The City’s non-major governmental special revenue funds include:

State Housing Grants Fund
Solid Waste and Recycling Fund
Gas Tax Fund
Measure K Streets Sales Tax Fund
Measure M Strong Communities Initiative
Measure W Public Safety Tax Fund
Special Assessment Fund
To account for revenues and expenditures apportioned to the City from ½ cent sales tax collections under Measure K. The Measure K program is administered by the San Joaquin Council of Governments (“SJCOG”) as the Local Transportation Authority for San Joaquin County. SJCOG was established as the Local Transportation Authority for this measure when San Joaquin County voters approved the enactment of the Measure K program in 1990. In 2006 voters approved to extend this measure for an additional 30 years. Expenditures for administration, maintenance and construction received under Measure K must be for street and transportation related projects.

To account for revenues and expenditures apportioned to the City ¼ cent sales tax collections from the district including the City of Stockton under Measure W, which was adopted by local voters in November 2004. Expenditures are for administration, implementation, and operation of the Police and Fire Safe Neighborhood Gang and Drug Prevention Program, among other programs.

To account for revenues and expenditures related to levies on property owners as approved by the City Council and state laws for special types of services – basic street and neighborhood lighting, land and streetscapes, and stormwater drainage maintenance services.

Measure M implements a dedicated one-quarter (1/4) cent special transactions and use sales tax for a period of 16 years for the provision of library and recreation services. On May 24, 2016, the Stockton City Council approved placing a one-quarter (1/4) cent sales tax on the November 8, 2016, General Election ballot with a Council vote of 7 - 0 and adopted Resolution 2016-05-24- 1602. Minor amendments were made to define the incorporated area of the City of Stockton, the election date, and to correct the name of a state board that had changed, based on comments received from the California State Board of Equalization, and the Resolution was superseded by Resolution 2016-06-07-1212 on June 7, 2016.

NON-MAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for specific governmental revenue sources that are restricted, committed or assigned to expenditures for specified purposes other than debt service or capital projects.

To account for resources for the City’s CalHome State Loan Program that support homeownership programs aimed at very low income households and loans extended to eligible low and moderate-income families as approved by the former Stockton Redevelopment Agency and the California Health and Safety Code. This fund includes the City’s annual funding to single family, down-payment assistance and single family rehabilitation.

To account for the administration of solid waste collection services, and the planning and implementation of solid waste reduction and recycling programs, in compliance with California Public Resources Code Section 40050 through 40063 (AB 939).

To account for revenues and expenditures apportioned to the City under the California Streets and Highway Code, sections 2103 through 2107.5. Expenditures of these resources for administration, maintenance and construction must be street and transportation related.

See accompanying Notes to the Basic Financial Statements.

122

ATTACHMENT A
SPECIAL REVENUE FUNDS (Continued)
Development Services Fund
Other Special Revenue Fund
Transportation Development Act Fund

CAPITAL PROJECT FUNDS
The City’s non-major governmental capital project funds include:

Public Facilities Impact Fees Capital Projects Fund

DEBT SERVICE FUNDS
The City’s non-major governmental debt service funds include:

Stockton Public Financing Authority Debt Service Fund

PERMANENT FUND
The Permanent Fund reports resources that are legally restricted to the extent that only earnings, and not principal, can be spent.

Permanent Fund resources help support designated arts, recreation, library and public safety programs.

Capital Project Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Debt Service Funds are used to account for and report financial resources that are restricted committed, or assigned to expenditures for principal and interest on long-term debt.

To account for the resources of comparatively smaller special revenue funds, including the Litigated Asset Seizure public safety program, State Housing Loan Program and various governmental expendable special revenue/trusts of funds donated to the City for various community projects and programs.

To account for the collection of and expenditure of fees imposed as a condition of new development within the City, in compliance with California Government Code Section 66006 (AB 1600). Impact fees have been established for each of the following types of public facilities: Traffic signals, Street improvements, Community recreation center, City office space, Fire stations, Libraries, Police stations, Parkland, Street tree & street signs, Street light in-lieu, Air quality mitigation, and Public facilities fees – administration.

To account for the accumulation of resources for the retirement of principal and interest payment on long-term debt for municipal bonds issued on behalf of and approved by the Stockton Public Financing Authority.

To account for the Local Transportation Fund revenues derived from a 1/4-cent general sales tax. The use the revenues for non- transit related purposes.

To account for resources for development planning and project review services including land use entitlements, permit processing and review and inspection of public improvements to ensure orderly physical growth and development of the City as approved by the City Council. Revenues and fees collected and recorded in this fund are committed to its related activities.

See accompanying Notes to the Basic Financial Statements.

123

ATTACHMENT A
State Solid Measure K Measure M
Housing Waste & Gas Streets Strong
Grants Recycling Tax Sales Tax Communities
Assets:

Cash and investments 4,416,816$ 4,560,560$ 10,176,826$ 17,279,588$ 25,267,797$ Receivables, net:

Interest 9,092 10,130 23,561 52,700 63,912 Accounts and other 25,817 279 - - - Advance deposits - 295 20,836 21,883 25,712 Due from other governments, net - - 1,076,048 3,990,872 2,937,724 Loans to Successor Agency, net 1,106,580 - - - - Loans to property owners, net 70,838,069 - - - - Total assets 76,396,374$ 4,571,264$ 11,297,271$ 21,345,043$ 28,295,145$ Liabilities:

Accounts payable -$ 3,755$ 569,599$ 1,062,140$ 494,714$ Accrued payroll - 40,325 174,003 9,548 155,245 Due to other governments - - - - - Deposits and other liabilities - 4,210 - - 7,615 Total liabilities - 48,290 743,602 1,071,688 657,574 Deferred Inflows of Resources:

Unavailable revenue - Other - - - 597,147 - Total deferred inflows of resource - - - 597,147 - Fund Balances:

Nonspendable 70,838,069 - - - - Restricted 5,558,305 4,522,974 10,553,669 19,676,208 27,637,571 Total fund balances 76,396,374 4,522,974 10,553,669 19,676,208 27,637,571 Total liabilities, deferred inflows of
76,396,374$ 4,571,264$ 11,297,271$ 21,345,043$ 28,295,145$ (Continued)
resources and fund balances
Special Revenue
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
City of Stockton
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.

124

ATTACHMENT A
Measure W Other Transportation
Public Special Development Special Development
Safety Tax Assessments Services Revenue Act
Assets:

Cash and investments 5,698,486$ 19,009,266$ 25,157,040$ 2,809,011$ 632,528$ Receivables, net:

Interest 10,923 46,897 60,364 8,381 - Accounts and other - 317,577 344,380 - - Advance deposits - - 63,041 1,530 - Due from other governments, net 2,942,163 - 65,000 - 303,249 Loans to Successor Agency, net - - - - - Loans to property owners, net - - - - - Total assets 8,651,572$ 19,373,740$ 25,689,825$ 2,818,922$ 935,777$ Liabilities:

Accounts payable 61,335$ 614,426$ 460,919$ 263,284$ -$ Accrued payroll 393,339 19,962 385,432 49,008 - Due to other governments - - - - - Deposits and other liabilities - - 686,706 - - Total liabilities 454,674 634,388 1,533,057 312,292 - Deferred Inflows of Resources:

Unavailable revenue - Other - - 228,391 1,931 - Total deferred inflows of resource - - 228,391 1,931 - Fund Balances:

Nonspendable - - - - - Restricted 8,196,898 18,739,352 23,928,377 2,504,699 935,777 Total fund balances 8,196,898 18,739,352 23,928,377 2,504,699 935,777 Total liabilities, deferred inflows of
8,651,572$ 19,373,740$ 25,689,825$ 2,818,922$ 935,777$ (Continued)
City of Stockton
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue
resources and fund balances
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
See accompanying Notes to the Basic Financial Statements.

125

ATTACHMENT A
Capital Projects Debt Service Permanent
Public Stockton Public
Facilities Financing
Impact Fees Authority Miscellaneous Totals
Assets:

Cash and investments 63,679,457$ 2,031,573$ 394,593$ 181,113,541$ Receivables, net:

Interest 157,508 545 570 444,583 Accounts and other 637,284 - - 1,325,337 Advance deposits - - - 133,297 Due from other governments, net - - - 11,315,056 Loans to Successor Agency, net - - - 1,106,580 Loans to property owners, net - - - 70,838,069 Total assets 64,474,249$ 2,032,118$ 395,163$ 266, 276,463$ Liabilities:

Accounts payable 79,522$ 44,375$ -$ 3,654,069$ Accrued payroll 13,363 16,305 - 1,256,530 Due to other governments 517,298 - - 517,298 Deposits and other liabilities - - - 698,531 Total liabilities 610,183 60,680 - 6,126,428 Deferred Inflows of Resources:

Unavailable revenue - Other 696,155 - - 1,523,624 Total deferred inflows of resource 696,155 - - 1,523,624 Fund Balances:

Nonspendable - - 356,134 71,194,203 Restricted 63,167,911 1,971,438 39,029 187,432,208 Total fund balances 63,167,911 1,971,438 395,163 258,626,411 Total liabilities, deferred inflows of
64,474,249$ 2,032,118$ 395,163$ 266,276,463$ (Concluded)
City of Stockton
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
resources and fund balances
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
See accompanying Notes to the Basic Financial Statements.

126

ATTACHMENT A
State Solid Measure K Measure M
Housing Waste & Gas Streets Strong
Grants Recycling Tax Sales Tax Communities
REVENUES:

Taxes:

Sales - levied by City -$ -$ -$ -$ 13,932,748$ Business license - - - - - Licenses and permits - - - - - Intergovernmental:

Federal grants and subsidies - - - - - Sales and use tax - levied by state - - - - - Other governmental - 3,229,740 12,803,636 9,064,959 - Charges for services - 1,030 - - - Fines and forfeitures - - - - - Use of money and property 229,064 - - - - Investment income:

Interest income (loss) 20,759 16,886 8,341 25,482 103,111 Refunds and reimbursements - - 92,722 23,640 - Miscellaneous 17,337 - - - - Total revenues 267,160 3,247,656 12,904,699 9,114,081 14,035,859 EXPENDITURES:

Current:

General government 202,766 1,423 3,309 7,402 8,976 Public safety - - - - - Public works - 1,523,626 9,526,818 3,587,265 - Library - - - - 2,096,912 Parks and recreation - - - - 2,997,436 Capital outlay - - 70,287 1,589,149 142,064 Debt s
ervice:

Principal retirement - - - - - Interest and fiscal charges - - - - - Total expenditures 202,766 1,525,049 9,600,414 5,183,816 5,245,388

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 64,394 1,722,607 3,304,285 3,930,265 8,790,471 OTHER FINANCING SOURCES (USES):

Transfers in 973,369 - - - - Transfers out - - (714,023) (4,231,103) (2,468,193) Capital contribution - - - - - Total other financing sources (uses) 973,369 - (714,023) (4,231,103) (2,468,193) CHANGE IN FUND BALANCES 1,037,763 1,722,607 2,590,262 (300,838) 6,322,278 FUND BALANCES:

Beginning of year, as restated (Note X) 75,358,611 2,800,367 7,963,407 19,977,046 21,315,293 End of year 76,396,374$ 4,522,974$ 10,553,669$ 19,676,208$ 27,637,571$ (Continued)
Special Revenue
City of Stockton
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

127

ATTACHMENT A
Measure W Other Transportation
Public Special Development Special Development
Safety Tax Assessments Services Revenue Act
REVENUES:

Taxes:

Sales - levied by City 13,895,762$ -$ -$ -$ -$ Business license - 1,604,211 - - - Licenses and permits - - 7,043,911 59,914 - Intergovernmental:

Federal grants and subsidies - - - 13,242 - Sales and use tax - levied by state - - - - - Other governmental - - - 2,430,911 303,249 Charges for services - 4,075,836 11,621,168 126,250 - Fines and forfeitures - - 96,328 - - Use of money and property - - 1,134 (5,900) - Investment income:

Interest income (loss) 4,449 (21,989) 83,174 22,920 - Refunds and reimbursements - - 43,269 - - Miscellaneous - - 59 457,137 - Total revenues 13,900,211 5,658,058 18,889,043 3,104,474 303,249 EXPENDITURES:

Current:

General government - 1,603,689 10,538,137 253,537 225 Public safety 11,092,285 - 2,872,076 1,536,229 - Public works - 3,340,396 - 451,033 17,638 Library - - - 3,086 - Parks and recreation - - - 9,114 - Capital outlay 102,603 - 11,785 213,611 - Debt service:

Princip
al retirement - - - - - Interest and fiscal charges - - - - - Total expenditures 11,194,888 4,944,085 13,421,998 2,466,610 17,863

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,705,323 713,973 5,467,045 637,864 285,386 OTHER FINANCING SOURCES (USES):

Transfers in - - 800,000 - - Transfers out - - - - - Capital contribution - - - - - Total other financing sources (uses) - - 800,000 - - CHANGES IN FUND BALANCES 2,705,323 713,973 6,267,045 637,864 285,386 FUND BALANCES:

Beginning of year, as restated (Note X) 5,491,575 18,025,379 17,661,332 1,866,835 650,391 End of year 8,196,898$ 18,739,352$ 23,928,377$ 2,504,699$ 935,777$ (Continued)
Special Revenue
City of Stockton
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

128

ATTACHMENT A
Capital Projects Debt Service Permanent
Public Stockton Public
Facilities Financing
Impact Fees Authority Miscellaneous Totals
REVENUES:

Taxes:

Sales - levied by City -$ -$ -$ 27,828,510$ Business license - - - 1,604,211 Licenses and permits - - - 7,103,825 Intergovernmental:

Federal grants and subsidies - - - 13,242 Sales and use tax - levied by state - - - - Other governmental - - - 27,832,495 Charges for services 5,961,469 - - 21,785,753 Fines and forfeitures - - - 96,328 Use of money and property 44,960 - - 269,258 Investment income:

Interest income (loss) 46,546 (29,203) (142) 280,334 Refunds and reimbursements 3,769 - - 163,400 Miscellaneous - 1,683,859 - 2,158,392 Total revenues 6,056,744 1,654,656 (142) 89,135,748 EXPENDITURES:

Current:

General government 399,579 164,047 80 13,183,170 Public safety - - - 15,500,590 Public works 28,404 - - 18,475,180 Library - - - 2,099,998 Parks and recreation - - - 3,006,550 Capital outlay 42,193 - - 2,171,692 Debt service:

Principal retirement - 130,569 - 130,569 Interest and fiscal charges - 4,424,561 - 4,424,561 Total expenditures 470,176 4,719,177 80 58,992,310

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,586,568 (3,064,521) (222) 30,143,438 OTHER FINANCING SOURCES (USES):

Transfers in - 2,991,175 - 4,764,544 Transfers out (1,104,290) - - (8,517,609) Capital contribution - - - - Total other financing sources (uses) (1,104,290) 2,991,175 - (3,753,065) CHANGES IN FUND BALANCES 4,482,278 (73,346) (222) 26,390,373 FUND BALANCES:

Beginning of year, as restated (Note X) 58,685,633 2,044,784 395,385 232,236,038 End of year 63,167,911$ 1,971,438$ 395,163$ 258,626,411$ (Concluded)
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
City of Stockton
See accompanying Notes to the Basic Financial Statements.

129

ATTACHMENT A

INTERNAL SERVICE FUNDS

ATTACHMENT A

ATTACHMENT A
The City’s internal service funds include:

General Liability Insurance Fund
Workers’ Compensation Insurance Fund
Employee & Retiree Health Insurance Fund
Retirement Benefits Fund
Other Benefits and Insurance Fund
Vehicle Fleet Equipment Fund
Computer & Radio Equipment Fund
Other Equipment Fund
To account for the financing, operations, servicing and maintenance of fleet vehicles and major equipment utilized by City departments, of which the services are rendered on a cost reimbursement basis.

To account for the financing, service and maintenance of all computer and radio related equipment provided to City departments on a cost reimbursement basis.

To account for the financing, operating and maintenance of other, comparatively smaller equipment funds provided to City departments on a cost reimbursement basis. Included are telephone, office, and printing and mailing equipment.

To account for premiums and claims paid and the administration of comparatively smaller insurance funds provided to City employees on a cost reimbursement basis. Included are long - term disability, life insurance, and termination pay benefits.

To account for the accumulation and payout of resources for the purpose of providing defined retirement and disability benefits, annual cost of living adjustments and death benefits to City employee plan members and beneficiaries through the California Public Employees’ Retirement System (“CalPERS”) on a cost reimbursement basis. The fund also accounts for future estimated related liabilities to the City based on independent actuarial studies utilizing insurance industry standards of applicable data, factors and assumptions, of which were pre-funded by bond proceeds from the 2007 Taxable Pension Obligations Bonds, Series A and B.

INTERNAL SERVICE FUNDS
Internal service funds are a type of proprietary fund used to report any activity that provides goods and services on a cost- reimbursement basis to other funds, departments, or agencies of the primary government and its component units, or to other governments.

To account for premiums and claims paid and the administration of general liability insurance provided to all City departments on a cost reimbursement basis. The fund also accounts for future estimated related liabilities to the City based on independent actuarial studies utilizing insurance industry standards of applicable data, factors and assumptions.

To account for premiums and claims paid and the administration of workers’ compensation liability insurance provided to all City employees incurring injury on the job, of which health benefits and other related liability costs are funded by City department payments into the fund. The fund also accounts for future estimated related liabilities to the City based on independent actuarial studies utilizing insurance industry standards of applicable data, factors and assumptions.

To account for premiums and claims paid and the administration of health benefits insurance provided to qualified active and qualified retired City employees, with City departmental payments made to the Fund sought to reimburse health related expenses incurred by the Fund. The fund also accounts for future estimated related liabilities to the City based on independent actuarial studies utilizing insurance industry standards of applicable data, factors and assumptions.

See accompanying Notes to the Basic Financial Statements.

130

ATTACHMENT A
General Workers' Employee & Other
Liability Compensation Retiree Health Retirement Benefits & Insurance Insurance Insurance Benefits Insurance
Current assets:

Cash and investments 20,791,270$ 41,260,040$ 5,560,941$ 16,863,111$ 1,121,458$ Receivables, net:

Interest 46,356 183,306 10,007 17,744 3,057 Accounts and other receivables 359,275 26,424 395 - - Due from other governments - - - - 64,234 Inventories - - - - - Deposits and advances - 446 768,340 - - Prepaid items 1,576 - 595,511 - - Loans to other funds - short-term - 1,116,562 - - - Total current assets 21,198,477 42,586,778 6,935,194 16,880,855 1,188,749 Noncurrent assets:

Restricted assets:

Cash and investments - - - 68,079,946 - Loans to other funds - long-term - 8,830,393 - - - Capital assets, net:

Nondepreciable - - - - - Depreciable, net - - - - - Total noncurrent assets - 8,830,393 - 68,079,946 - Total assets 21,198,477 51,417,171 6,935,194 84,960,801 1,188,749 Current liabilities:

Account
s payable 2,071 66,692 170,984 1,435,743 128,124 Accrued payroll 52,943 19,828 24,491 3,892 - Deposits and other liabilities - 49,104 - - - Accrued interest - - - - - Loans from other funds - short-term - - - - - Capital lease obligations - current - - - - - Compensated absences - current 7,886 11,731 19,212 - - Self-insurance claims and judgments - current 2,398,704 10,362,000 396,000 - -

Total current liabilities 2,461,604 10,509,355 610,687 1,439,635 128,124 Noncurrent liabilities:

Compensated absences - long-term - 5,171 16,882 - - Self-insurance claims and judgments - long-term 8,125,922 45,033,000 - - - Loans from other funds- long-term - - - - - Capital lease obligations - long term - - - - - Total noncurrent liabilities 8,125,922 45,038,171 16,882 - - Total liabilities 10,587,526 55,547,526 627,569 1, 439,635 128,124 Net investment in capital assets - - - - - Restricted for pensions - - - 68,079,946 - Unrestricted (deficits) 10,610,951 (4,130,355) 6,307,625 15,441,220 1,060,625 Total net position 10,610,951$ (4,130,355)$ 6,307,625$ 83,521,166$ 1,060,625$

LIABILITIES

NET POSITION
ASSETS
City of Stockton
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.

131

ATTACHMENT A
Computer
Vehicle Fleet & Radio Other
Equipment Equipment Equipment Total
Current assets:

Cash and investments 14,813,794$ 49,019,181$ 1,579,176$ 151,008,971$ Receivables, net:

Interest 35,070 132,301 3,802 431,643 Accounts and other receivables 154,075 - - 540,169 Due from other governments - - - 64,234 Inventories - 90,207 - 90,207 Deposits and advances 283,055 138,125 - 1,189,966 Prepaid items 13,774 1,121,307 23,050 1,755,218 Loans to other funds - short-term - 780,000 - 1,896,562 Total current assets 15,299,768 51,281,121 1,606,028 156,976,970 Noncurrent assets:

Restricted assets:

Cash and investments - - - 68,079,946 Loans to other funds - long-term - - - 8,830,393 Capital assets, net:

Nondepreciable 106,569 11,486,461 - 11,593,030 Depreciable, net 17,033,251 4,703,408 20,670 21,757,329 Total noncurrent assets 17,139,820 16,189,869 20,670 110,260,698 Total assets 32,439,588 67,470,990 1,626,698 267,237,668 Current liabilities:

Accounts payable 749,420 1,054,311 25,788 3,633,133 Accrued payroll 111,494 233,863 7,164 453,675 Deposits and other liabilities - - - 49,104 Accru
ed interest 24,358 - - 24,358 Loans from other funds - short-term 486,720 - - 486,720 Capital lease obligations - current 206,486 - - 206,486 Compensated absences - current 80,438 218,276 4,549 342,092 Self-insurance claims and judgments - current - - - 13,156,704 Total current liabilities 1,658,916 1,506,450 37,501 18,352,272 Noncurrent liabilities:

Compensated absences - long-term 56,580 180,108 5,972 264,713 Self-insurance claims and judgments - long-term - - - 53,158,922 Loans from other funds- long-term 1,819,062 - - 1,819,062

Capital lease obligations - long term - - - - Total noncurrent liabilities 1,875,642 180,108 5,972 55,242,697 Total liabilities 3,534,558 1,686,558 43,473 73,594,969 Net investment in capital assets 16,933,334 16,189,869 20,670 33,143,873 Restricted for pensions - - - 68,079,946 Unrestricted (deficits) 11,971,696 49,594,563 1,562,555 92,418,880 Total net position 28,905,030$ 65,784,432$ 1,583,225$ 193,642,699$ ASSETS

LIABILITIES

NET POSITION
City of Stockton
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.

132

ATTACHMENT A
General Workers' Employee & Other
Liability Compensation Retiree Health Retirement Benefits & Insurance Insurance Insurance Benefits Insurance
OPERATING REVENUES:

Charges for services 10,458,070$ 11,400,610$ 20,019,404$ 74,458,063$ 2,113,728$ Miscellaneous - - - 113,388 - Total operating revenues 10,458,070 11,400,610 20,019,404 74,571,451 2,113,728 OPERATING EXPENSES:

Operation and maintenance (113,129) 11,688,888 21,827,175 73,225,052 2,584,515 General and administrative 2,010,142 2,937,422 1,708,534 2,490 429 Depreciation and amortization - - - - - Total operating expenses 1,897,013 14,626,310 23,535,709 73,227,542 2,584,944 OPERATING INCOME (LOSS) 8,561,057 (3,225,700) (3,516,305) 1,343,909 (471,216) NON-OPERATING REVENUES (EXPENSES):

Investment income:

Interest income (loss) 28,467 196,297 (117,309) 6,213,578 (893) Gain from disposal of capital assets - - - - - Interest expense and fiscal charges - - - - - Other non-operating revenues - - 176,559 - 353,221 Total non-operating revenues (expenses) 28,467 196,297 59,250 6,213,578 352,328 INCOME
(LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 8,589,524 (3,029,403) (3,457,055) 7,557,487 (118,888)

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions - - - - - Transfers in - - - 16,114,000 - Total capital contributions and transfers - - - 16,114,000 - CHANGES IN NET POSITION 8,589,524 (3,029,403) (3,457,055) 23,671,487 (118,888) NET POSITION:

Beginning of year 2,021,427 (1,100,952) 9,764,680 59,849,679 1,179,513 End of year 10,610,951$ (4,130,355)$ 6,307,625$ 83,521,166$ 1,060,625$ City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

133

ATTACHMENT A
Computer
Vehicle Fleet & Radio Other
Equipment Equipment Equipment Total
OPERATING REVENUES:

Charges for services 12,781,104$ 17,013,949$ 290,798$ 148,535,726$ Miscellaneous - - - 113,388 Total operating revenues 12,781,104 17,013,949 290,798 148,649,114 OPERATING EXPENSES:

Operation and maintenance 6,305,320 10,805,245 368,948 126,692,014 General and administrative 1,456,543 16,390 534 8,132,484 Depreciation and amortization 3,079,760 1,311,814 24,175 4,415,749 Total operating expenses 10,841,623 12,133,449 393,657 139,240,247 OPERATING INCOME (LOSS) 1,939,481 4,880,500 (102,859) 9,408,867 NON-OPERATING REVENUES (EXPENSES):

Investment income:

Interest income (loss) 21,146 (61,306) (4,221) 6,275,759 Gain from disposal of capital assets 358,648 - - 358,648 Interest expense and fiscal charges (62,488) - - (62,488) Other non-operating revenues - - - 529,780 Total non-operating revenues (expenses) 317,306 (61,306) (4,221) 7,101,699

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 2,256,787 4,819,194 (107,080) 16,510,566

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions 536,034 250,613 - 786,647 Transfers in 1,688,158 5,499,192 - 23,301,350

Total capital contributions and transfers 2,224,192 5,749,805 - 24,087,997 CHANGES IN NET POSITION 4,480,979 10,568,999 (107,080) 40,598,563 NET POSITION:

Beginning of year 24,424,051 55,215,433 1,690,305 153,044,136 End of year 28,905,030$ 65,784,432$ 1,583,225$ 193,642,699$ City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

134

ATTACHMENT A
General Workers' Employee & Other
Liability Compensation Retiree Health Retirement Benefits & Insurance Insurance Insurance Benefits Insurance
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts for interfund services provided 10,459,847 12,022,835 20,019,252 74,571,451 2,113,728 Payments to suppliers and employees (2,001,809) (14,603,993) (23,597,767) (73,146,270) (2,687,504) Claims and insurance paid (4,883,715) 3,843,000 (41,000) - - Net cash provided by (used in) operating
activities 3,574,323 1,261,842 (3,619,515) 1,425,181 (573,776)

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers in and out - - - 16,114,000 - Loans to and from other funds - 1,116,562 - - 74,710 Other non-operating revenues - - 176,559 - 353,221 Net cash provided by (used in) noncapital
financing activities - 1,116,562 176,559 16,114,000 427,931

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Proceeds from sale of capital assets - - - - - Purchases of capital assets - - - - - Capital contributions received - - - - - Principal paid on debt - - - - - Interest paid on debt - - - - - N
et cash (used in) capital and related
financing activities - - - - - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 44,062 253,837 (91,758) 6,220,842 792 Deferred rent - - - - - Net cash provided by investing activities 44,062 253,837 (91,758) 6,220,842 792

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 3,618,385 2,632,241 (3,534,714) 23,760,023 (145,053) CASH AND CASH EQUIVALENTS:

Beginning of year 17,172,885 38,627,799 9,095,655 61,183,034 1,266,511
End of year 20,791,270$ 41,260,040$ 5,560,941$ 84,943,057$ 1, 121,458$ City of Stockton
Combining Statement of Cash Flows
For the Year Ended June 30, 2021
Internal Service Funds
See accompanying Notes to the Basic Financial Statements.

135

ATTACHMENT A
Computer
Vehicle Fleet & Radio Other
Equipment Equipment Equipment Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts for interfund services provided 12,639,945 16,233,949 290,798 148,351,805 Payments to suppliers and employees (7,542,465) (10,704,160) (347,142) (134,631,110) Claims and insurance paid - - - (1,081,715) Net cash provided by (used in) operating
activities 5,097,480 5,529,789 (56,344) 12,638,980

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers in 1,688,158 5,499,192 - 23,301,350 Loans to and from other funds (477,195) - - 714,077 Other non-operating revenues - - - 529,780 Net cash provided by (used in) noncapital
financing activities 1,210,963 5,499,192 - 24,545,207

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Proceeds from sale of capital assets 358,648 - - 358,648 Purchases of capital assets (4,738,303) (8,943,334) - (13,681,637) Capital contributions received 536,034 250,613 - 786,647 Principal paid on debt (199,890) - - (199,890) Interest paid on debt (71,621) - - (71,621) Net cash (used in) capital and related
financing activities (4,115,132) (8,692,721) - (12,807,853) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 33,426 (9,482) (1,682) 6,450,037 Deferred rent - - - - N
et cash provided by investing activities 33,426 (9,482) (1,682) 6,450,037

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 2,226,737 2,326,778 (58,026) 30,826,371 CASH AND CASH EQUIVALENTS:

Beginning of year 12,587,057 46,692,403 1,637,202 188,262,546 End of year 14,813,794$ 49,019,181$ 1,579,176$ 219,088,917$ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

136

ATTACHMENT A
General Workers' Employee Other
Liability Compensation Health Retirement Benefits &
Insurance Insurance Insurance Benefits Insurance

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO THE STATEMENT OF NET
POSITION - PROPRIETARY FUNDS:

Cash and investments 20,791,270$ 41,260,040$ 5,560,941$ 16,863,111$ 1,121,458$ Restricted assets:

Cash with investments fiscal agents - - - 68,079,946 - Total cash and investments 20,791,270$ 41,260,040$ 5,560,941$ 84,943,057$ 1, 121,458$

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

Operating income (loss) 8,561,057$ (3,225,700)$ (3,516,305)$ 1,343,909$ (471,216)$ Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Depreciation and amortization - - - - - Changes in assets and liabilities:

Accounts and other receivables 1,777 - (152) - - Due from other funds 622,225
Prepaid items 679 (4,428) (112,143) - 47,203 Inventory of supplies - - - - - Deposits and advances - (446) (2,406) - - Accounts payable (74,441) 56,839 50,715 78,289 (149,763) Accrued payroll (6,305) (9,495) (7,838) 2,983 Compensated absences (24,729) (20,153) 9,614 - - Self-insurance - claims and judgments (4,883,715) 3,843,000 (41,000) - - Net cash provided by (used in) operating
activities 3,574,323$ 1,261,842$ (3,619, 515)$ 1,425,181$ (573,776)$ NONCASH TRANSACTIONS:

Capital contributions -$ -$ -$ -$ -$ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

137

ATTACHMENT A
Vehicle Fleet Computer Other
Equipment Equipment Equipment Total

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO THE STATEMENT OF NET
POSITION - PROPRIETARY FUNDS:

Cash and investments 14,813,794$ 49,019,181$ 1,579,176$ 151,008,971$ Restricted assets:

Cash with investments fiscal agents - - - 68,079,946 Total cash and investments 14,813,794$ 49,019,181$ 1,579,176$ 219,088,917$

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

Operating income (loss) 1,939,481$ 4,880,500$ (102,859)$ 9,408,867$ Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Depreciation and amortization 3,079,760 1,311,814 24,175 4,415,749 Changes in assets and liabilities:

Accounts and other receivables (141,159) - - (139,534) Due from other funds - (780,000) - (157,775) Prepaid items (7,180) 191,521 20,681 136,333 Inventory of supplies - (90,207) - (90,207) Deposits and advances (283,055) (138,125) - (424,032) Accounts payable 500,774 62,806 (4,095) 521,124 Accrued payroll (10,256) (16,501) 2,225 (45,187) Compensated absences 19,115 107,981 3,529 95,357 Self-insurance - claims and judgments - - - (1,081,715) Net cash provided by (used in) operating
activities 5,097,480$ 5,529,789$ (56,344)$ 12,638,980$ NONCASH TRANSACTIONS:

Capital contributions 536,034$ 250,613$ -$ 786,647$ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

138

ATTACHMENT A

139

ATTACHMENT A

CUSTODIAL-FIDUCIARY FUNDS

ATTACHMENT A

ATTACHMENT A
The City’s custodial funds include:

Land-Secured Financing Agency Fund
All Other Agency Funds
To account for various cultural, recreational and educational programs that the City administers on behalf of other governmental and private sector entities and organizations.

CUSTODIAL FUNDS
Custodial funds are a type of fiduciary fund used to account for assets held in an agency capacity for parties outside the City. The resources of these funds cannot be used to support the City’s own programs.

To account for special taxes or assessment collections from property owners that are authorized under various public improvement acts of the State of California. The City acts only as an agent and forwards collections to bondholders and initiated foreclosure proceedings when necessary.

See accompanying Notes to the Basic Financial Statements.

140

ATTACHMENT A
Land-Secured
Financing All Other Total
Assets:

Cash and investments 8,448,492$ 17,417,398$ 25,865,890$ Cash and investments with fiscal agents 12,158,213 - 12,158,213 Receivables:

Interest 18,393 40,499 58,892 Accounts and other receivables - 7,641,030 7,641,030 Total assets 20,625,098 25,098,927 45,724,025 Liabilities:

Accounts payable - 2,314,335 2,314,335 Due to other governments - 2,727,931 2,727,931 Total liabilities - 5,042,266 5,042,266 Net Postions:

Restricted for individual, organization,
and other government 20,625,098 20,056,661 40,681,759 Total net positions 20,625,098$ 20,056,661$ 40,681,759$ City of Stockton
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.

141

ATTACHMENT A
Land-Secured
Financing All Other Total
ADDITIONS:

Property taxes 7,499,663$ -$ 7,499,663$ Use of money and property - - - Investment income (loss) (18,643) 296,702 278,059 Debt proceeds 14,270,860 - 14,270,860 Security deposits - 2,296,727 2,296,727 Total additions 21,751,880 2,593,429 24,345,309 DEDUCTIONS:

General government 330,749 - 330,749 Public Works 18,187,457 - 18,187,457 Debt obligations 9,657,655 5,688 9,663,343 Total deductions 28,175,861 5,688 28,181,549 CHANGE IN NET POSITION (6,423,981) 2,587,741 (3,836,240) NET POSITION (DEFICIT):

Beginning of year, as restated (Note 18) 27,049,079 17,468,920 44,517,999 End of year 20,625,098$ 20,056,661$ 40,681,759$ City of Stockton
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.

142

ATTACHMENT A
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax 28,472,000$ 40,810,516$ 12,338,516$ Total revenues 28,472,000 40,810,516 12,338,516 Uses/Expenditures
Police
Salary & benefits
Sworn 21,413,141 19,316,382 2,096,759
Non-Sworn 3,800,419 3,164,294 636,125 Vacancy savings (993,017) - (993,017) Other services 2,920,889 2,675,205 245,684 Materials & supplies
Fuel 348,096 285,767 62,329
Other supplies 431,091 189,377 241,714 Other expenses
Training 620,018 617,265 2,753 Total police 28,540,637 26,248,290 2,292,347 Office of Violence Prevention
Salary & benefits
Non-sworn 863,143 766,267 96,876 Other services 312,856 174,886 137,970 Materials & supplies
Fuel 6,231 6,243 (12) Other supplies 35,000 5,369 29,631 Office equipment 3,979 665 3,314 Other expenses 19,850 1,086 18,764 Total Office of Violence Prevention 1,241,059 954,516 286,543 Basis Adjustment
Encumbrances (included in final budget) - 171,220 (171,220) Total Measure B Expenditures 29,781,696 27,374,026 2,407,670 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 105% 67%
Other City Services
Prior Year - Mission Critical Projects - - - General Fund available fund balance (1,309,696) 13,436,490 (14,746,186) Total adjustment (1,309,696) 13,436,490 (14,746,186) Total Uses/Expenditures 28,472,000$ 40,810,516$ (12,338, 516)$ Schedule of Sources and Uses
Measures A and B
For Year Ended June 30, 2021
City of Stockton
See accompanying Notes to the Basic Financial Statements.

143

ATTACHMENT A

STATISTICAL SECTION

ATTACHMENT A

ATTACHMENT A
144

ATTACHMENT A
2021 2020 2019 2018 2017
Governmental activities:

Net investment in capital assets 732,219$ 724,164$ 346,021$ 328, 284$ 330, 655$ Restricted 457,693 239,339 204,114 170,507 148,493 Unrestricted (262,907) (119,715) 260,748 238,421 229,584 927,005 843,787 810,883 737,211 708,732 Business-type activities:

Net investment in capital assets 365,873 301,434 381,015 367,317 362,886 Restricted 46,241 125,668 28,411 46,805 50,904 Unrestricted 224,551 177,840 155,217 133,656 82,938 636,665 604,942 564,643 547,778 496,728 Primary government:

Net investment in capital assets 1,098,093 1,025,598 727,036 695, 601 693, 540 Restricted 503,934 365,007 232,525 217,311 199,397 Unrestricted (38,356) 58,125 415,965 372,077 312,522 1,563,670$ 1,448,729$ 1,375,526$ 1,284,989$ 1,205,460$ Source: City of Stockton Department of Administrative Services City of Stockton
Table 1
Net Position by Classification
Last Ten Fiscal Years
(Dollar amounts in thousands)
Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatements.

Total governmental activities net position
Total business-type activities net position
Total primary government net position
Fiscal Year

145

ATTACHMENT A
2016 2015 2014 2013 2012
Governmental activities:

Net investment in capital assets 287,078$ 326,823$ 714,595$ 725, 426$ 703, 266$ Restricted 153,087 130,763 96,596 93,905 84,099 Unrestricted 196,005 160,224 (62,855) (82,351) (114,859) 636,170 617,810 748,336 736,980 672,506 Business-type activities:

Net investment in capital assets 369,983 379,853 413,783 418, 881 432, 082 Restricted 54,618 56,521 54,175 56,589 27,976 Unrestricted 44,792 28,751 42,641 38,380 54,340 469,393 465,125 510,599 513,850 514,398 Primary government:

Net investment in capital assets 657,061 706,676 1,128,378 1,144,307 1,135,348 Restricted 207,705 187,284 150,771 150,494 112,075 Unrestricted 240,797 188,975 (20,214) (43,971) (60,519) 1,105,563$ 1,082,935$ 1,258,935$ 1,250,830$ 1,186,904$ Source: City of Stockton Department of Administrative Services City of Stockton
Table 1
Net Position by Classification (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatements.

Total governmental activities net position
Total business-type activities net position
Total primary government net position

146

ATTACHMENT A
2021 2020 2019 2018 2017
74,314$ 37,269$ 37,821$ 37,259$ 33, 378$ 217,953 217,941 199,263 212,181 154, 932 55,086 44,922 37,168 38,435 45, 670 12,792 14,657 13,501 12,301 10, 904 11,526 27,798 27,288 23,753 22, 481 4,373 5,298 5,914 5,964 4, 288 376,045 347,885 320,954 329,894 271,653 Business-type activities:
54,266 47,974 46,641 39,526 42,886 61,124 63,983 58,093 41,648 50,545 6,759 6,599 7,419 4,729 5, 288 4,995 5,795 5,501 5,310 5, 641 1,667 2,499 3,613 3,299 3, 235 Total business-type activities 128,811 126,850 121,267 94,512 107,595 Total expenses 504,856 474,736 442,221 424,406 379,248

Governmental activities:

Charges for services:

General government 12,560 9,250 13,977 16, 451 19, 184 Public safety 13,235 11,220 16,925 15,309 9,188 Public works 32,456 3,143 10,367 14, 914 3, 373 Library 7,037 278 470 595 377 Parks and recreation 406 4,010 11,320 12, 194 8, 765 Operating grants and contributions 51,329 21,509 13,446 12, 402 12, 565 Capital grants and contributions 39,065 30,227 45,632 21, 426 17, 591 Total governmental activities 156,087 79,637 112,137 93,292 71,043 Business-type activities:

Charges for services:

Water utility 64,097 57,519 49,489 50, 590 42, 308 Wastewater utility 73,885 71,210 67,432 68, 191 66, 833 Stormwater utility 6,040 6,417 6,407 5, 683 5, 619 Parking Authority 4,589 4,749 4,592 4, 447 5, 141 Other 355 1,038 1,755 1, 776 1, 675 Operating grants and contributions - 7,314 3,643 3, 855 3, 889 Capital grants and contributions 13,263 7,258 4,626 6, 245 2, 971 162,229 155,504 137,944 140,787 128,436 Total program revenues 318,316 235,141 250,081 234,078 199,479 Change in Net Position
Governmental activities (219,957) (268,248) (208,817) (236,603) (200,610) Business-type activities 33,417 28,654 16,677 46,275 20,841 Total primary government (186,540)$ (239,594)$ (192,140)$ (190,328)$ (179,769)$ Fiscal Year
(Dollar amounts in thousands)
Last Ten Fiscal Years
City of Stockton
Table 2
Changes in Net Position
Total governmental activities
Stormwater utility
Parks and recreation
Interest and fiscal charges
Parking Authority
Expenses
General government
Public safety
Public works
Library
Governmental activities:

Water utility
Wastewater utility
Program Revenues
Total business-type activities
Other

147

ATTACHMENT A
2016 2015 2014 2013 2012
39,608$ 35,576$ 34,594$ 24,909$ 41, 548$ 169,015 123,403 124,806 108,931 154, 230 36,344 37,685 51,942 49,259 34, 635 10,406 9,098 9,807 8,445 10, 176 21,620 20,801 19,456 19,736 20, 760 2,216 3,401 14,486 14,615 20, 529 279,209 229,964 255,091 225,895 281,878 Business-type activities:
48,001 47,474 44,720 48,570 30,162 58,665 56,153 55,724 51,166 51,530 6,601 7,084 5,758 5,959 6, 685 5,384 5,026 5,120 4,944 4, 903 3,116 3,374 3,448 2,939 3, 750 Total business-type activities 121,767 119,111 114,770 113,578 97,030 Total expenses 400,976 349,075 369,861 339,473 378,908

Governmental activities:

Charges for services:

General government 15,831 15,169 14,785 17, 977 15, 342 Public safety 13,663 16,863 21,016 18,130 15,002 Public works 8,292 6,105 5,178 6, 136 6, 255 Library 517 441 437 670 719 Parks and recreation 9,158 6,145 5,655 6, 597 6, 037 Operating grants and contributions 12,861 18,823 18,840 23, 827 20, 460 Capital grants and contributions 16,286 34,268 36,052 57, 146 54, 487 Total governmental activities 76,608 97,814 101,963 130,483 118,302 Business-type activities:

Charges for services:

Water utility 33,277 35,059 37,855 37, 464 33, 308 Wastewater utility 68,938 65,726 59,953 55, 369 50, 324 Stormwater utility 5,573 5,569 5,571 5, 503 5, 888 Parking Authority 4,971 4,170 2,882 2, 669 3, 487 Other 1,750 1,769 1,870 1, 934 2, 071 Operating grants and contributions 3,776 5,133 3,865 4, 175 4, 175 Capital grants and contributions 3,562 2,945 1,112 4, 700 10, 139 121,847 120,371 113,108 111,814 109,392 Total program revenues 198,455 218,185 215,071 242,297 227,694 Change in Net Position
Governmental activities (202,601) (132,150) (153,128) (95,412) (163,576) Business-type activities 80 1,260 (1,662) (1,764) 12,362 Total primary government (202,521)$ (130,890)$ (154,790)$ (97,176)$ (151,214)$ Fiscal Year
Total business-type activities
Last Ten Fiscal Years
Changes in Net Position (Continued)
(Dollar amounts in thousands)
City of Stockton
Table 2
Wastewater utility
Stormwater utility
Parking Authority
Other
Program Revenues
Library
Parks and recreation
Interest and fiscal charges
Total governmental activities
Water utility
Expenses
Governmental activities:

General government
Public safety
Public works

148

ATTACHMENT A
2021 2020 2019 2018 2017
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:

Property 38,523$ 36,692$ 35,739$ 33, 112$ 32, 411$ In lieu of sales tax - - - - Utility user 36,414 34,537 34,252 35, 415 34, 455 Sales - levied by City (1) 68,639 57,077 57,911 52, 788 42, 506 Franchise fees 16,901 15,292 12,307 13, 243 13, 289 Business licenses 15,695 14,557 19,958 13, 507 12, 243 Hotel/motel room 2,860 2,834 3,377 3, 193 2, 997 Document transfer 1,222 912 1,071 1, 078 801 Other 2,874 3,262 2,905 2, 916 1, 939 Shared revenue: - - - Vehicle license fees 27,757 31,839 23,599 29, 091 21, 423 Sales and use tax levied by state (1) 65,201 56,122 57,151 68, 467 49, 910 Other 18,303 - 165 44 14,086 21,759 18,438 899 1,966 147 12 (1,602) (203) 578 11,105 9,469 7,810 4,083 2, 820 (547) 500 6,203
- - - 10,237 - - -
Transfers from Successor Agency, Net - - 734 1,751 (922) 9,074 389 654 303,175 301,198 282,489 265,082 228,273 Business-type activities:
1,407 1,341 1,271 1,292 - - 100
Investment earnings 57 9,318 7,920 233 131 Gain on sale of capital assets (2) - 20 (1,156) - - -
- - 3,540
Transfers 922 (9,074) (389) ( 654) (1,751) - -
Total business-type activities (1,694) 11,645 188 4,774 (387) 301,481 312,843 282,676 269,857 227, 886 Change in Net Position
Governmental activities 83,218 32,950 73,671 28, 479 27, 662 Business-type activities 31,723 40,299 16,865 51, 049 20, 454 Total primary government 114,941$ 73,249$ 90,536$ 79,529$ 48,116$ Source: City of Stockton Department of Administrative Services Fiscal Year
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Total governmental activities
Extraordinary items
Miscellaneous
Special item
Transfers
Grants and contributions not restricted to specific programs Other taxes
Proceeds of long-term debt
Investment earnings
Gain (Loss) on sale of capital assets
Miscellaneous
(Dollar amounts in thousands)
Extraordinary items (2)
changes in net assets
Total general revenues and other
(1) Measure A-Public Safety Tax, an additional .75% sales tax approved 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases Special item
(2) In fiscal year 2015 Extraordinary items for Government activities and Business-type activites relate to GASB #58 Bankruptcy, with both principal and interest debt forgiven. GASB #68 Penision obligations being restated to show on balance sheet.

149

ATTACHMENT A
2016 2015 2014 2013 2012
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:

Property 30,646$ 29,573$ 28,015$ 29, 420$ 32, 772$ In lieu of sales tax 8,775 9,816 9,706 9, 938 8, 392 Utility user 33,379 32,921 32,370 31, 941 31, 505 Sales - levied by City (1) 39,070 37,208 15,536 9, 086 8, 576 Franchise fees 12,397 12,379 11,981 11, 677 12, 465 Business licenses 11,996 10,805 10,392 10, 153 9, 873 Hotel/motel room 2,711 2,378 2,080 2, 006 1, 933 Document transfer 857 587 564 458 603 Other 1,801 930 728 287 159 Shared revenue:

Vehicle license fees 20,354 19,602 18,069 17, 433 17, 734 Sales and use tax levied by state (1) 45,097 36,904 35,111 34, 031 32, 604 Other 45 49 253 400 - 4,728 1,532 1,128 123 2,802 568 (13,214) (3,712) (1) - 7,303 16,982 3,042 2,411 974 - - - - - - 23,396 - - - - 250,701 - - 75,350 (297) 383 1,330 524 1,718 219,430 472,932 166,593 159,887 237,460 Business-type activities:
1,239 974 1,166 1,197 1, 205 - - - - - Investment earnings 2,653 1,172 1,448 530 1,865 Gain on sale of capital assets - (3,300) - - - - - 431 14 (18,012) - - - - - Transfers 297 (383) (1,330) (524) ( 1,718) - 9,548 - - - Total business-type activities 4,189 8,011 1,715 1,217 (16,660) 223,619 480,943 168,308 161,104 220, 800 Change in Net Position
Governmental activities 16,829 340,782 13,465 64, 475 73, 884 Business-type activities 4,271 9,271 53 (547) ( 4,298) Total primary government 21,100$ 350,053$ 13,518$ 63,928$ 69,586$ Source: City of Stockton Department of Administrative Services Fiscal Year
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Grants and contributions not restricted to specific programs (Dollar amounts in thousands)
Miscellaneous
Special item
Extraordinary items (2)
Proceeds of long-term debt
Extraordinary items
Transfers
Total governmental activities
Other taxes
Special item
Miscellaneous
Gain on sale of capital assets
Investment earnings
changes in net assets
Total general revenues and other
(1) Measure A-Public Safety Tax, an additional .75% sales tax approved 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases (2) In fiscal year 2015 Extraordinary items for Government activities and Business-type activites relate to GASB #58 Bankruptcy, with both principal and interest debt forgiven. GASB #68 Penision obligations being restated to show on balance sheet.

150

ATTACHMENT A
2021 2020 2019 2018 2017
General Fund
Nonspendable 2,215$ 5,796$ 3,621$ 1,303$ 1,539$ Restricted 4,428 3,998 4,034 4,730 4,603 Committed 77,638 59,714 54,243 45,957 56,439 Assigned 4,526 4,017 4,144 2,227 3,922 Unassigned 42,049 41,085 37,990 36,265 36,184 Total General Fund 130,857 114,611 104,032 90,482 102,687 All other governmental funds
Nonspendable 152,462 356 356 370 Restricted 222,308 189,758 169,507 117,387 114,254 Committed - -
Assigned - -
Unassigned - - 3,232 Total all other governmental funds 374,770 190,114 169,863 117,757 117,486 Total Fund Balance 505,627$ 304,725$ 273,895$ 208,239$ 220,173$ Source: City of Stockton Department of Administrative Services Fiscal Year
City of Stockton
Table 3
Fund Balance, Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)

151

ATTACHMENT A
2016 2015 2014 2013 2012
General Fund
Nonspendable 2,214$ 810$ 500$ 409$ 355$ Restricted 3,549 2,949 3,551 2,334 2,100 Committed 49,088 28,930 34,008 23,775 8,070 Assigned 5,467 - 3,059 1,710 4,111 Unassigned 33,326 38,639 9,751 3,093 - Total General Fund 93,644 71,328 50,869 31,321 14,636 All other governmental funds
Nonspendable 373 382 443 369 370
Restricted 122,084 104,785 81,435 75,157 83,636 Committed - - - - -
Assigned - - - - -
Unassigned - - (20,669) (18,793) (18,775) Total all other governmental funds 122,457 105,167 61,209 56,733 65,231 Total Fund Balance 216,101$ 176,495$ 112,078$ 88,054$ 79,867$ Source: City of Stockton Department of Administrative Services Fiscal Year
City of Stockton
Table 3
Fund Balance, Governmental Funds (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
152

ATTACHMENT A
1000
2021 2020 2019 2018 2017
Revenues:

Taxes:

Property 38,523$ 36,692$ 35,342$ 33,068$ 32,411$ In lieu of sales tax - 44
Utility user 36,414 34,537 34,252 35,415 34,455 Sales (levied by City) (1) 68,639 57,077 57,911 52, 788 42, 506 Franchise fees 16,901 15,292 12,307 13,243 13,289 Business license 15,695 14,557 13,215 13,507 12,243 Hotel/motel room 2,860 2,834 3,377 3, 193 2, 997 Document transfer 1,222 912 1,071 1,126 801 Other 2,874 3,262 2,905 2,916 1,939 Licenses and permits 7,670 6,847 6,744 6,214 5,867 Federal grants and subsidies 30,339 15,578 16,517 13,235 12,859 Other shared revenue (sales and use tax levied by state) (1) 65,201 56,122 51,577 53,817 49,910 Other governmental 99,161 59,367 66,594 57,778 37,574 Charges for services 31,330 26,904 27,227 29,377 22,920 Fines and forfeitures 379 1,101 1,277 1,247 1,164 Use of money and property 5,731 10,569 12,460 9,528 8,197 Investment income: - -
Interest income 7,785 14,075 11,758 1,063 1,762 Refunds and reimbursements 602 6,633 6,614 7,887 6,077 Miscellaneous 10,189 8,981 8649 8,596 6,745 Total revenues 441,514 371,340 369,795 344,044 293,716 Expenditures:

Current:

General government 72,185 30,148 30,537 26,761 29,235 Pub
lic safety 205,923 193,778 189,824 184,426 171,073 Public works 41,960 20,120 19,793 18,852 15,818 Library 12,762 14,400 13,789 12,416 10,619 Parks and recreation 8,207 25,920 26,006 22,462 20,493 Capital outlay 26,127 31,225 35,158 51,210 31,407 Debt service: - - - Principal retirement 1,806 1,699 11,477 2,204 13,593 Cost of issuance - - - Interest and fiscal charges 4,617 5,229
5,627 5,767 2,872
Total expenditures 373,587 322,521 332,211 324,098 295,110 Excess (deficiency) of revenues
over (under) expenditures 67,926$ 48,819$ 37,584$ 19,946$ (1,394)$ City of Stockton
Fiscal Year
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)

153

ATTACHMENT A
2016 2015 2014 2013 2012
Revenues:

Taxes:

Property 30,646$ 29,573$ 28,014$ 29,420$ 32,772$ In lieu of sales tax 8,775 9,816 9,706 9,938 8,392 Utility user 33,379 32,921 32,369 31,941 31,505 Sales (levied by City) (1) 39,070 37,208 15,536 9, 086 8, 576 Franchise fees 12,397 12,380 11,981 11,677 12,465 Business license 11,996 10,805 10,392 10,153 9,873 Hotel/motel room 2,711 2,378 2,080 2, 006 1, 933 Document transfer 856 587 565 458 603 Other 1,535 930 728 287 159 Licenses and permits 5,347 4,398 3,808 3,696 4,024 Federal grants and subsidies 10,470 21,796 22,453 23,158 19,927 Other shared revenue (sales and use tax levied by state) (1) 45,097 36,904 35,111 34,031 32,604 Other governmental 36,696 41,806 47,951 71,746 66,985 Charges for services 26,473 21,351 19,410 19,059 21,655 Fines and forfeitures 624 3,814 2,925 2,419 2,792 Use of money and property 8,172 9,318 9,536 13,767 11,848 Investment income:

Interest income 3,088 916 650 119 2,367 Refunds and reimbursements 5,188 12,710 2,401 1,814 3,213 Miscellaneous 11,246 16,674 7,707 6,942 6,088 Total revenues 293,766 306,285 263,323 281,717 277,781 Expenditures:

Current:

General government 27,229 34,652 25,510 23,245 22,742 Public safety 150,853 141,542 129,030 125,331 139,047 Public works 14,861 14,152 14,458 13,498 13,989 Library 10,107 9,880 9,793 9,039 9,537 Parks and recreation 19,295 19,094 17,202 17,733 16,887 Capital outlay 23,857 31,345 43,273 72,568 68,005 Debt service:

Principal retirement 3,325 8,217 9,589 9,013 5,883 Cost of issuance 2,119 - - - - Interest and fiscal charges 3,229 4,661 5,957 13,531 Tot
al expenditures 251,646 262,111 253,516 276,384 289,621 Excess (deficiency) of revenues
over (under) expenditures 42,120$ 44,174$ 9,807$ 5,333$ (11,840)$ (Dollar amounts in thousands)
City of Stockton
Fiscal Year
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years

154

ATTACHMENT A
2021 2020 2019 2018 2017
Other financing sources (uses):

Capital contributions -$ -$ -$ -$ -$ Transfers in 19,903 18,062 31,310 19,077 23,347 Transfers out (41,452) (36,445) (29,479) (37,913) (12,966) Transfers from successor Agency 734
Special Item (Note 18) 6,203
Bond insurers proceeds -
Operating transfers out to a component unit -
Proceeds of current refunding bonds -
Sales of capital assets 2,419 393 52 800 492 Advances from other funds
Payment to refunded bond escrow agent
Total other financing sources (uses) (19,131) (17,990) 1,884 (11,099) 10,873 Special items
Net change in fund balance 48,796 30,830 39,468 8,847 9,479 Fund balance, beginning of year, original 456,831 273,895 234,427 225,581 216,100 Prior period restatement
Fund balance, beginning of year, restated 456,831 273,895 234,427 225,581 216,100 Fund balance, end of year 505,627$ 304,725$ 273,895$ 234,427$ 225,579$ Debt service as a percentage of noncapital expenditures 1.9% 2.4% 6.1% 3.0% 6.7% Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatement.

City of Stockton
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
(Dollar amounts in thousands)
(1) Measure A-Public Safety Tax, an additional .75% sales tax approved in 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases
Fiscal Year

155

ATTACHMENT A
2016 2015 2014 2013 2012
Other financing sources (uses):

Capital contributions -$ -$ -$ -$ -$ Transfers in 15,916 16,860 13,497 - - Transfers out (18,810) (20,235) (13,031) 30,678 24,706 Transfers from successor Agency (30,360) (25,450) Special Item (Note 18)
Bond insurers proceeds - 29,178 7,800 Operating transfers out to a component unit - - - 8,287 - Proceeds of current refunding bonds - - - - 533 Sales of capital assets 379 521 200 - - Advances from other funds - - - - - Payment to refunded bond escrow agent - (6,080) - - - Total other financing sources (uses) (2,515) 20,244 8,466 8,605 (211) Special items - - - - (21,324) Net change in fund balance 39,605 64,417 18,273 13,938 (33,375) Fund balance, beginning of year, original 176,495 112,078 93,806 79,869 113,244 Prior period restatement - - - - - F
und balance, beginning of year, restated 176,495 112,078 93,806 79,869 113,244 Fund balance, end of year 216,100$ 176,495$ 112,078$ 93,806$ 79,869$ Debt service as a percentage of noncapital expenditures 2.4% 5.2% 7.3% 7.9% 9.6% Note: Some prior year balances may have been restated from previous ACFRs to reflect new GASB implementations or prior period restatement. (1) Measure A-Public Safety Tax, an additional .75% sales tax approved in 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases
Fiscal Year
(Dollar amounts in thousands)
City of Stockton
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years

156

ATTACHMENT A
2021 2020 2019 2018 2017
Property (1) 38,523$ 36,692$ 35,342$ 33,068$ 32,411$ In lieu of sales tax - - 44 Utility user 36,414 34,537 34,252 35, 415 34, 455 Sales (levied by city) (2) 68,639 57,077 57,911 52, 788 42, 506 Franchise fees 16,901 15,292 12,307 13,243 13,289 Business licenses 15,695 14,557 13,215 13,507 12,243 Hotel/motel room 2,860 2,834 3,377 3,193 2,997 Document transfer 1,222 912 1,071 1,126 801 Other 2,874 3,262 2,905 2,916 Totals 183,127$ 165,163$ 160,379$ 155,301$ 138,702$ Source: City of Stockton Department of Administrative Services City of Stockton
Table 5
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) Property taxes decreased beginning in 2009 due to declining residential home values and foreclosures, resulting in a devaluation of City’s assessed valuation performed by San Joaquin County. Also, between 2008 and 2011, property taxes collected by the RDA was included in the City's property tax revenue.
(2) Measure A-Public Safety Tax, an additional .75% sales tax approved in 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases

157

ATTACHMENT A
2016 2015 2014 2013 2012 % Change
2012
to 2021
Property (1) 30,646$ 29,573$ 28,014$ 29,420$ 32,772$ 18% In lieu of sales tax 8,775 9,816 9,706 9,938 8,392 -100% Utility user 33,379 32,921 32,369 31, 941 31, 505 16% Sales (levied by city) (2) 39,070 37,208 15,536 9, 086 8, 576 700% Franchise fees 12,397 12,380 11,981 11,677 12,465 36% Business licenses 11,995 10,805 10,392 10,153 9,873 59% Hotel/motel room 2,711 2,378 2,080 2,006 1,933 48% Document transfer 856 587 565 458 603 103% Other 1,535 930 728 287 159 1707% Totals 141,364$ 136,598$ 111,371$ 104,966$ 106,278$ 72% Source: City of Stockton Department of Administrative Services City of Stockton
Table 5
Tax Revenues by Source, Governmental Funds (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) Property taxes decreased beginning in 2009 due to declining residential home values and foreclosures, resulting in a devaluation of City’s assessed valuation performed by San Joaquin County. Also, between 2008 and 2011, property taxes collected by the RDA was included in the City's property tax revenue.
(2) Measure A-Public Safety Tax, an additional .75% sales tax approved in 2014, and Measure M - a new .25% sales tax approved in 2017 contributed to increases

158

ATTACHMENT A
2021 2020 2019 2018 2017
Secured roll 24,952,342$ 23,628,432$ 22,488,506$ 21,378,475$ 20,299,172$ Utility roll 6,507 5,827 5,816 5,863 5,833 Unsecured roll 1,507,064 1,439,016 1,610,921 1,629,758 1,596,101 Gross assessed value 26,465,914 25,073,275 24,105,243 23,014,096 21,901,106 Less exemptions (1) 1,980,526 1,948,125 1,917,101 1,532,852 1,786,986 Net assessed value 24,485,388 23,125,150 22,188,142 21,481,244 20,114,120 Land 6,823,616 6,506,827 6,280,943 6,081,944 5,713,082 Improvements 18,716,229 17,635,057 16,582,837 15,666,837 15,004,037 Personal property 926,070 931,391 1,241,463 1,265,315 1,183,987 Gross assessed value 26,465,914 25,073,275 24,105,243 23,014,096 21,901,106 Less exemptions (1) 1,980,526 1,948,125 1,917,101 1,532,852 1,786,986 Net assessed value 24,485,388$ 23,125,150$ 22,188,142$ 21,481,244$ 20,114,120$ Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00%

Source: San Joaquin County Auditor-Controller's Office City of Stockton
Table 6
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) For FY 2021, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $215,908 and other - $1,764,618 = $1,980,526 Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the property being sold is reassessed at the purchase price. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

159

ATTACHMENT A
2016 2015 2014 2013 2012
Secured roll 19,473,994$ 18,496,369$ 16,981,109$ 16,272,927$ 16,575,192$ Utility roll 6,199 6,209 6,228 7,504 7,204 Unsecured roll 1,651,844 1,638,161 1,557,131 1,566,497 1,566,928 Gross assessed value 21,132,037 20,140,739 18,544,468 17,846,928 18,149,324 Less exemptions (1) 1,729,742 1,717,223 1,699,348 1,608,513 1,654,143 Net assessed value 19,402,295 18,423,516 16,845,120 16,238,415 16,495,181 Land 5,420,167 4,978,511 4,597,437 4,019,017 4,168,722 Improvements 14,501,054 13,928,278 12,868,329 12,696,221 12,846,828 Personal property 1,210,816 1,233,950 1,078,702 1,131,690 1,133,774 Gross assessed value 21,132,037 20,140,739 18,544,468 17,846,928 18,149,324 Less exemptions (1) 1,729,742 1,717,223 1,699,348 1,608,513 1,654,143 Net assessed value 19,402,295$ 18,423,516$ 16,845,120$ 16,238,415$ 16,495,181$ Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00%
Source: San Joaquin County Auditor-Controller's Office City of Stockton
Table 6
Assessed Value and Estimated Actual Value of Taxable Property (Continued) Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) For FY 2021, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $215,908 and other - $1,764,618 = $1,980,526 Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%).

With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the property being sold is reassessed at the purchase price. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

160

ATTACHMENT A
Fiscal Year
Basic
Countywide
Levy City Total Direct
Stockton Unified
School District
San Joaquin
Delta College
District Total
2021 1.0000 1.0000 0.2271 0.0183 1. 2454 2020 1.0000 - 1.0000 0.2455 0.0199 1. 2654 2019 1.0000 - 1.0000 0.2443 0.0225 1. 2668 2018 1.0000 - 1.0000 0.2054 0.0180 1. 2234 2017 1.0000 - 1.0000 0.2537 0.0180 1.2717 2016 1.0000 - 1.0000 0.2710 0.0198 1.2908 2015 1.0000 - 1.0000 0.2280 0.0233 1.2513 2014 1.0000 - 1.0000 0.2105 0.0194 1.2299 2013 1.0000 - 1.0000 0.1917 0.0202 1.2119 2012 1.0000 - 1.0000 0.1601 0.0200 1.1801 Source: San Joaquin County Tax Rate Book
Note: On June 6, 1978, California voters approved an amendment to the Article XIIIA of the California Constitution. The amendment, commonly known as Proposition 13, limits the taxing power of California public agencies. The California Legislature enacted legislation to implement Article XIIIA (Statues of 1978, Chapter 292, as amended) providing that local agencies may not levy any property tax except to pay debt service on indebtedness approved by voters prior to July 1, 1978, and that each county will levy the maximum tax permitted of $1.00 per $100.00 of full assessed value.

City of Stockton
Table 7
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)

161

ATTACHMENT A

2021 2012
Taxpayer
Taxable
Assessed Value Rank
Taxable
Assessed Value Rank
Prologis 198,965$ 1 0.865 %
PW Fund B Development 158,489 2 0.689
Central Valley Indust core holdings LLC 139,273 3 0.606 % Excel Stockton LLC 125,364 4 0.545 % 120,555 1 0.805 % EGMR Norcal Logistics Center LLC 107,406 5 0.467 % Patmon Company Inc 93,536 6 0.407 %
IDIL Stockton Logistics II 83,221 7 0.362 % Simpson Manufacturing Co Inc 74,227 8 0.323 % 87,199 3 0.582 % ARC BBSTNCA001 70,936 9 0.309 %
Diamond Foods Inc 56,999 10 0.248 %
Buzz Oates LLC 100,832 2 0.673 %
Diamond Walnut Growers Inc 67,287 4 0.449 % Corn Products International Inc 64,862 5 0.433 % Fresh and Easy Neighborhood Market Inc. 64,230 6 0.429 % Tru Properties Inc 35,960 7 0.240 % Unilever Supply Chain Inc 34,080 8 0.228 % Oni Stockton Inc 29,170 9 0.195 % Eastland Plaza Partnership 19,044 10 0.127 % Principal Secured Property Valuation 1,108,416 4.821 % 623,219 4.162 % Other Secured Taxpayers 23,843,927 103.701 15,951,973 106.541 Total Secured Property Valuation Before Exemptions 24,952,342 108.522 % 16,575,192 110.703 % Less Exemptions relative to secured tax roll (1) 1,959,366 8.522 1,602,538 10.703 Total Secured Property Valuation 22,992,976$ 100.000 % 14,972,654$ 100.000 % (1) Exemptions relative to secured tax roll: FY 2021- homeowners - $215,832 and other - $1,743,534 = $1,959,366 FY 2012 - homeowners - $245,767 and other - $1,357,771= $1,602,538 Source: San Joaquin County Assessor's Office
San Joaquin County Auditor-Controller's Office
Percent of Total
City Taxable
Assessed Value
Percent of Total
City Taxable
Assessed Value
Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold. At that point, the purchase price becomes the new assessed value. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

City of Stockton
Table 8
Principal Property Taxpayers
Current Year and Ten Years Ago
(Dollar amounts in thousands)
Fiscal Year

162

ATTACHMENT A
Amount Amount
2021 36,615$ 36,615$ 100 - 36,615$ 100 % 2020 34,739$ 34,739$ 100 % - 34,739$ 100 % 2019 33,521$ 33,521$ 100 % - 33,521$ 100 % 2018 31,193$ 31,193$ 100 % - 31,193$ 100 % 2017 30,495$ 30,495$ 100 % - 30,495$ 100 % 2016 28,907$ 28,907$ 100 % - 28,907$ 100 % 2015 27,852$ 27,852$ 100 % - 27,852$ 100 % 2014 25,952$ 25,952$ 100 % - 25,952$ 100 % 2013 24,745$ 24,745$ 100 % - 24,745$ 100 % 2012 24,785$ 24,785$ 100 % - 24,785$ 100 % Percent of
Levy
Total Collections
to Date
(1) Per agreement with San Joaquin County; the County provides the City with 100% of the amount owed for secured properties, regardless of collection status. In exchange, the County is entitled to 100% of delinquency and penalty revenues collected.

City of Stockton
Table 9
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
(Dollar amounts in thousands)
Collected Within the Fiscal Year of the
Levy
Source: San Joaquin County Auditor-Controller’s Office Collections in
Subsequent
Years
Secured Taxes
Levied for the
Fiscal YearFiscal Year
Percent of
Levy (1)

163

ATTACHMENT A
2021 2020 2019 2018 2017
Type of Customer
Residential 10,610,177 cf 7,997,883 cf 7,669,451 cf 8,231,972 cf 7,289,614 cf Institutional 1,105,150 827,124 789,265 632,738 573,873 Commercial/Industrial 2,018,500 1,588,605 1,645,890 1,640,471 1,512,098 Irrigation 2,025,832 1,457,258 1,294,982 1,310,062 1,110,614 Total 15,759,659 cf 11,870,870 cf 11,399,588 cf 11,815,243 cf 10,486,199 cf 1 cubic foot (cf) = 7.481 gallons
Source: City of Stockton Department of Administrative Services City of Stockton
Table 10
Water Sold by Customer Type
Last Five Fiscal Years
Fiscal Year
164

ATTACHMENT A
Wastewater
Fiscal Year Monthly Base Rate
Tier 1 Additional Per
100 cf**
Tier 2 Additional
Per 100 cf** Monthly Base Rate
2021 33.90$ 2.47$ 2.95$ 46.75$
2020 32.90$ 2.39$ 2.86$ 44.10$
2019 31.95$ 2.31$ 2.76$ 38.36$
2018 31.00$ 2.23$ 2.66$ 38.36$
2017 28.00$ 2.00$ 2.39$ 38.36$
2016 22.25$ 1.67$ -$ 37.76$
2015 21.90$ 1.64$ -$ 37.09$
2014 21.51$ 1.61$ -$ 34.03$
2013 21.15$ 1.58$ -$ 31.22$
2012 20.00$ 1.40$ -$ 28.64$
*Effective 8/01/2016-Water Consumption Tier 1 0-15 CF and Tier 2 15+CF. 100 cf = 100 cubic feet (748 gallons)
Rates are based on 1" and less meter, which is the standard household meter size. **The Utility charges an excess use rate above normal demand.

Source: City of Stockton Department of Administrative Services Water
City of Stockton
Table 11
Water and Wastewater Utility Rates
Last Ten Fiscal Years
165

ATTACHMENT A

166

ATTACHMENT A
Fiscal
Year
Revenue*
Bonds (1)
Certificates
of
Participation
Redevelopment
Agency
Revenue Bonds*
Notes
Payable /
Equip. Leases /
Settlements
Pension
Bonds*
Total
Governmental
Activities
2021 -$ -$ 88,250$ 6,321$ 53,248$ 147,819$ 2020 -$ -$ 91,935$ 8,196$ 53,378$ 153,509$ 2019 -$ -$ 95,560$ 9,990$ 53,478$ 159,028$ 2018 9,425$ -$ 99,125$ 15,853$ 53,547$ 177,950$ 2017 9,915$ -$ 103,320$ 18,130$ 53,589$ 184,954$ 2016 10,385$ 11,500$ 111,424$ 18,298$ 53,606$ 205,213$ 2015 10,835$ 11,890$ 113,262$ 18,095$ 54,530$ 208,612$ 2014 75,285$ 12,265$ 119,210$ 20,157$ 121,770$ 348,687$ 2013 81,465$ 12,625$ 122,100$ 25,326$ 123,350$ 364,866$ 2012 87,520$ 12,970$ 124,695$ 26,625$ 124,280$ 376,090$ *Includes settlement amounts for debts adjusted under Chapter 9 of the US Bankruptcy Code.

Sources: City of Stockton Department of Administrative Services US Dept. of Commerce, Bureau of Economic Analysis
State of California, Department of Finance
Governmental Activities*
City of Stockton
Table 12
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
(1) These ratios are calculated using the latest available data, personal income for fiscal year 2017 and population for fiscal year 2019.

Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements, Note 7-Long-Term Debt and Note 7-Short-Term Debt of these financial statements.
167

ATTACHMENT A
Fiscal
Year
Revenue
Bonds
Certificates
of
Participation
Notes
Payable
Total
Business-type
Activities Total Population
Amount
Per
Capita (2)
2021 261,845$ 129,381$ 391,226$ 539,045$ 1.50 % 320,804 1,680$ 2020 144,710$ 129,380$ 274,090$ 427,599$ 1.19 % 318,522 1,342$ 2019 279,039$ -$ 10,870$ 289,909$ 448,937$ 1.41 % 316,410 1,419$ 2018 312,700$ -$ 10,870$ 323,570$ 501,520$ 2.32 % 315,103 1,592$ 2017 326,165$ -$ 10,870$ 337,035$ 521,989$ 1.85 % 320,554 1,628$ 2016 336,218$ -$ 10,954$ 347,172$ 552,385$ 2.56 % 315,592 1,750$ 2015 343,926$ -$ 11,040$ 354,966$ 563,578$ 2.61 % 306,999 1,836$ 2014 284,225$ 81,270$ 11,123$ 376,618$ 725,305$ 3.36 % 300,899 2,410$ 2013 289,360$ 84,500$ 11,202$ 385,062$ 749,928$ 3.47 % 296,344 2,531$ 2012 293,425$ 87,590$ 11,276$ 392,291$ 768,381$ 3.56 % 295,707 2,598$ *Includes settlement amounts for debts adjusted under Chapter 9 of the US Bankruptcy Code.

Sources: City of Stockton Department of Administrative Services US Dept. of Commerce, Bureau of Economic Analysis
State o
f California, Department of Finance
Business-type Activities
City of Stockton
Table 12
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
Percent
of
Personal
Income (2)
Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements, Note 7-Long-Term Debt and Note 7-Short-Term Debt of these financial statements.
(1) These ratios are calculated using the latest available data, personal income for fiscal year 2017 and population for fiscal year 2019. 168

ATTACHMENT A
General Bonded Debt Outstanding*
Fiscal Year
Lease
Revenue
Bonds
Certificates
of
Participation
(2)
Pension
Obligation
Bonds (1)
Redevelopment
Agency
Bonds* Total
Amount
Per
Capita
2021 -$ -$ 53,248$ -$ 53,248$ 0.002 % 0.17$ 2020 -$ -$ 53,378$ -$ 53,378$ 0.002 % 0.17$ 2019 -$ -$ 53,478$ -$ 53,478$ 0.002 % 0.17$ 2018 9,425$ -$ 53,547$ -$ 62,972$ 0.003 % 0.20$ 2017 9,915$ -$ 53,589$ -$ 63,504$ 0.003 % 0.20$ 2016 10,385$ 11,500$ 53,606$ -$ 75,491$ 0.004 % 0.24$ 2015 10,835$ 11,890$ 54,529$ -$ 77,254$ 0.004 % 0.25$ 2014 75,285$ 12,265$ 121,770$ 119,210$ 328,530$ 0.020 % 1.09$ 2013 81,465$ 12,625$ 123,350$ 122,100$ 339,540$ 0.021 % 1.15$ 2012 87,520$ 12,970$ 124,280$ 124,695$ 349,465$ 0.021 % 1.18$ (1)Includes settlement amounts for debts adjusted under Chapter 9 of the US Bankruptcy Code. (2)General Fund liability limited to only 80.5% of amounts due on principal shown Source: City of Stockton Department of Administrative Services San Joaquin County Auditor-Controller’s Office
State of California, Department of Finance
General bonded debt is payable with governmental fund resources. General obligation bonds (of which the City has none) are backed by the taxing authority of the City (taxes may be raised to provide resources for debt service payments.) Percent of
Assessed
Property Value
City of Stockton
Table 13
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
* Redevelopment Agency Bonds are no longer included in the General Bonded debt 169

ATTACHMENT A
Total Debt Percentage City’s share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 Applicable (1) Debt 6/30/2021 San Joaquin Delta Community College District 200,505,000$ 26.698 % 53,530,825$ Stockton Unified School District 415,407,362 84.543 351,197,846 Lodi Unified School District 227,060,000 33.607 76,308,054 Lodi Unified School District School Facilities Improvement District No. 1 45,935,000 85.233 39,151,779 Lincoln Unified School District 69,631,518 86.692 60,364,956 Lincoln Unified School District Community Facilities District No. 1 17,166,567 80.151 13,759,175 Manteca Unified School District 167,369,885 12.900 21,590,715 Manteca Unified School District Community Facilities District No. 1989-1 13,900,105 100.000 13,900,105 Tracy Joint Unified School District and School Facilities Improvement Dist. No.3 139,394,900 0.004 & 0.007 8,746 City of Stockton Community Facilities District No. 99-02 23,305,000 100.000 23,305,000 City of Stockton Community Facilities District No. 2001-1 (Spanos Park West) 11,021,924 100.000 11,021,924 City of Stockton Community Facilities District No. 2003-1 1,641,980 100.000 1,641,980 City of Stockton Community Facilities District No. 2005-1 9,575,000 100.000 9,575,000 City of Stockton Community Facilities District No. 2006-1 2,375,793 100.000 2,375,793 City of Stockton Community Facilities District No. 2006-2 3,038,000 100.000 3,038,000 City of Stockton Community Facilities District No. 2006-3 4,598,187 100.000 4,598,187 City of Stockton Community Facilities District No. 2018-1 3,400,000 100.000 3,400,000 City of Stockton Community Facilities District No. 2018-2 13,505,000 100.000 13,505,000 City of Stockton 1915 Act Bonds 17,761,322 100.000 17,761,322 Reclamation District No. 2042 Community Facilities District No. 2001-1 4,443,138 18.211 809,140 San Joaquin Area Flood Control District Smith Assessment District 22,525,000 57.451 12,940,838 San Joaquin County Reclamation District No. 17 Assessment District 21,637,111 27.618 5,975,737 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 739,760,122

OVERLAP
PING GENERAL FUND DEBT:

San Joaquin County Certificates of Participation 65,595,000 29.011 % 19,029,765 Lincoln Unified School District Certificates of Participation 9,012,759 86.692 7,813,341 Lodi Unified School District Certificates of Participation 11,480,000 33.607 3,858,084 Manteca Unified School District General Fund Obligations 17,973,000 12.900 2,318,517 Stockton Unified School District Certificates of Participation 26,780,000 84.543 22,640,615 Lathrop-Manteca Rural Fire Protection District certificates of Participation 3,570,000 0.029 1,035 City of Stockton Capital Lease Obligations 206,486 100.000 206,486 City of Stockton Bond Insurer Settlement Agreement Liability 53,247,671 100.000 53,247,671 TOTAL OVERLAPPING GENERAL FUND DEBT 109,115,514
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
2016 Tax Allocation Revenue Bonds Series A 73,310,000 100.000 % 73,310,000 2016 Tax Allocation Revenue Bonds Series B 14,940,000 100.000 14,940,000 TOTAL
OVERLAPPING TAX INCREMENT DEBT 88,250,000
TOTAL DIRECT DEBT 53,454,157
TOTAL OVERLAPPING DEBT 883,671,479
GROSS COMBINED TOTAL DEBT (2) 937,125,636
2020-21 Assessed Valuation (3): 24,701,296$
2020-21 Population 320,804
Debt Ratios Per Capita

Value
Total Gross Debt (2) 937,125,636$ 2,921$ 3793.83 % Ratios to 2019-20 Assessed Valuation: Total Overlapping Tax and Assessment Debt 739,760,122 2,306 2994.82 Ratios to Adjusted Assessed Valuation: Combined Direct Debt 53,454,157 167 216.40 (1) Percent of overlapping agency's assessed valuation located within boundaries of the City. (3) Represents Gross Assessed Valuation after deducting $1,980,526 Sources: California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller’s Office
State of California, Department of Finance, Demographic Research Unit City of Stockton
Table 14
Direct and Overlapping Governmental Activities Debt
(after deducting $1,764,618 Other Exemptions Valuation) (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. 170

ATTACHMENT A
2021 2020 2019 2018 2017
Assessed valuation (1) 24,701,296$ 23,343,395$ 22,407,298$ 21,362,446$ 20,337,129$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 6,175,324 5,835,849 5,601,825 5,340,612 5,084,282 Debt limit percentage 15% 15% 15% 15% 15%
Debt Limit 926,299 875,377 840,274 801,092 762,642 Total net debt applicable to limit - - - -
Legal debt margin 926,299$ 875,377$ 840,274$ 801,092$ 762,642$ Legal debt margin/debt limit 100% 100% 100% 100% 100%
Sources: City of Stockton Department of Administrative Services California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller's Office
City of Stockton
Table 15
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within the City boundaries, adjusted for subsequent legislative actions. In accordance with California Government Code Section 43605, only the City's general obligation bonds are subject to the legal limit. The City of Stockton does carry bonded debt secured by special assessments and other revenue sources, but at this time, doesn't have any outstanding general obligation bonds. The City is not at risk of exceeding its legal debt limit. (1) Reflects City assessed valuation excluding other exemptions of $1,764,618,090. Redevelopment Agency was dissolved in 2013. 171

ATTACHMENT A
2016 2015 2014 2013 2012
Assessed valuation (1) 19,628,594$ 18,653,199$ 17,079,491$ 16,479,102$ 15,572,567$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 4,907,149 4,663,300 4,269,873 4,119,776 3,893,142 Debt limit percentage 15% 15% 15% 15% 15%
Debt Limit 736,072 699,495 640,481 617,966 583,971 Total net debt applicable to limit - - - - -
Legal debt margin 736,072$ 699,495$ 640,481$ 617,966$ 583,971$ Legal debt margin/debt limit 100% 100% 100% 100% 100%
Sources: City of Stockton Department of Administrative Services California Municipal Statistics, Inc., San Francisco, CA San Joaquin County Auditor-Controller's Office
City of Stockton
Table 15
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
(1) Reflects City assessed valuation excluding other exemptions of $1,764,618,090. Redevelopment Agency was dissolved in 2013.

Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within the City boundaries, adjusted for subsequent legislative actions. In accordance with California Government Code Section 43605, only the City's general obligation bonds are subject to the legal limit. The City of Stockton does carry bonded debt secured by special assessments and other revenue sources, but at this time, doesn't have any outstanding general obligation bonds. The City is not at risk of exceeding its legal debt limit. 172

ATTACHMENT A
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Water Revenue Bonds
2021 72,506$ 23,006$ 49,500$ 5,630$ 6,770$ 12,400$ 3.99 2020 65,686$ 30,944$ 34,742$ 4,975$ 9,279$ 14,254$ 2.44 2019 54,172$ 25,163$ 29,009$ 5,000$ 11,814$ 16,814$ 1.73 2018 53,997$ 22,595$ 31,402$ 4,955$ 12,686$ 17,641$ 1.78 2017 43,643$ 23,798$ 19,845$ 83$ 12,798$ 12,881$ 1.54 2016 37,906$ 23,312$ 14,594$ 87$ 13,242$ 13,329$ 1.09 * 2015 42,416$ 22,830$ 19,586$ 4,263$ 13,397$ 17,660$ 1.11 * 2014 38,991$ 19,762$ 19,229$ 3,939$ 12,116$ 16,055$ 1.20 2013 40,601$ 21,652$ 18,949$ 3,780$ 10,139$ 13,919$ 1.36 2012 35,914$ 20,055$ 15,859$ 711$ 2,146$ 2,857$ 5.55 (Continued)
* Coverage requirement is 1.15, however, it is applied in sequence, first to the senior, and then to the subordinate issues.

Done in sequence both senior and subordinate issues met the coverage requirement in both years.

Note: Net Available Revenue for the Water Bonds provides a 3.35 debt coverage ratio for the senior lien issues and a 1.16 debt coverage ratio for the subordinate lien issues.

City of Stockton
Table 16
Pledged-Revenue Coverage
Last Ten Fiscal Years
(Dollars amounts in thousands)
173

ATTACHMENT A
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Wastewater Certificates of Participation
2021 80,221$ 43,795$ 36,426$ 3,995$ 2,497$ 6,492$ 5.61 2020 82,314$ 47,956$ 34,358$ 3,795$ 3,701$ 7,496$ 4.58 2019 70,849$ 42,197$ 28,652$ 3,635$ 2,860$ 6,495$ 4.41 2018 70,938$ 41,977$ 28,961$ 3,490$ 3,002$ 6,492$ 4.46 2017 68,597$ 43,201$ 25,396$ 3,345$ 3,139$ 6,484$ 3.92 2016 70,532$ 43,730$ 26,802$ 3,230$ 3,254$ 6,484$ 4.13 2015 57,321$ 39,698$ 17,623$ 3,390$ 3,217$ 6,607$ 2.67 2014 61,230$ 40,173$ 21,057$ 3,230$ 4,143$ 7,373$ 2.86 2013 56,316$ 35,423$ 20,893$ 3,090$ 4,287$ 7,377$ 2.83 2012 51,708$ 35,206$ 16,502$ 2,955$ 4,417$ 7,372$ 2.24 City of Stockton
Table 16
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
Source: City of Stockton Department of Administrative Services Includes all nongeneral obligation long term debt backed by pledged revenues.

Details regarding the City's outstanding debt can be found in the Note 7 - Long-Term Debt of these financial statements. (1) Total operating expenses exclusive of depreciation and amortization. (Dollars amounts in thousands)
174

ATTACHMENT A
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Parking Authority
2021 4,628$ 3,007$ 1,621$ 1,194$ 1,194$ 1.36 (2) Total operating expenses exclusive of depreciation and amortization. (1 )Includes all nongeneral obligation long term debt backed by pledged revenues.Please not that principal and interest for an internal loan subordinated to the 2020 Parking Revenue Bonds is not included. Had payments for that loan been included, coverage would have been 0.81 Details regarding the City's outstanding debt can be found in the Note 7 - Long-Term Debt of these financial statements.

Source: City of Stockton Department of Administrative Services City of Stockton
Table 16
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
(Dollars amounts in thousands)
175

ATTACHMENT A
Fiscal
Year Population
Personal Income
(millions
of dollars)
Per
Capita
Personal
Income
Labor Force
(1)
Total
Housing
Units
Household
Average
Size
Median
Family
Income
School
Enrollment
(2)
2021 320,804 15,122$ 47,139$ 10.3 % 132,463 101,960 3.25 54,614$ 98,646 2020 318,522 16,346$ 51,318$ 13.1 % 130,300 101,235 3.26 51,318$ 101,162 2019 316,410 13,549$ 42,822$ 7.0 % 129,000 100,877 3.39 48,396$ 105,705 2018 315,103 12,748$ 40,458$ 6.3 % 134,500 100,593 3.15 46,033$ 99,347 2017 320,554 12,428$ 38,770$ 7.3 % 127,000 100,254 3.23 44,797$ 71,491 2016 315,592 11,404$ 36,136$ 8.3 % 127,900 100,146 3.20 45,347$ 71,738 2015 306,999 10,670$ 34,755$ 8.5 % 127,000 100,097 3.23 46,831$ 66,037 2014 300,899 9,937$ 33,024$ 12.8 % 125,600 100,025 3.23 47,246$ 69,183 2013 296,344 9,191$ 31,013$ 14.8 % 124,800 100,003 3.20 47,246$ 67,997 2012 295,707 9,171$ 31,013$ 17.0 % 125,400 99,925 3.19 47,365$ 68,568 Sources: City of Stockton Department of Administrative Services & Community Development Department CA Dept. of Finance and Employment Development Department US Dept. of Commerce, Bureau of Economic Analysis
US Census Bureau
CA Dept. of Education
Unemployment
Rate
Personal income is the income received by all persons from all sources. Personal income is the sum of net earnings by place of residence, rental income of persons, personal dividend income, personal interest income, and personal current transfer receipts.

Per capita personal income is calculated as the personal income of residents of a given area divided by the resident population of the area. In computing per capita personal income, Bureau of Economic Analysis uses the Census Bureau's annual midyear population estimates.

City of Stockton
Table 17
Demographic and Economic Statistics
Last Ten Fiscal Years
(1) Labor Force corrected for FY 15, FY 16, FY 17 which reported previously as San Joaquin County labor force , corrected to State, the City of Stockton labor force only.
176

ATTACHMENT A
Percent
of Total City
Employer Employees Rank Employees Rank Employment
Stockton Unified School District 5,205 1 3.99% 3,893 2 3.03% St. Joseph’s Medical Center 4,600 2 3.53% 2,500 3 1.95% Amazon 2,100 3 1.61%
City of Stockton 2,099 4 1.61% 1,683 5 1.31% San Joaquin County 2,000 5 1.53% 6,500 1 5.06% Pacific Gas and Electric 1,550 6 1.19% 1,100 8 0.86% Lincoln Unified School District 1,212 7 0.93% Kaiser Permanente 1,065 8 0.82% 1,065 9 0.83% University of the Pacific 1,021 9 0.78% 1,000 10 0.78% San Joaquin Delta College 1,007 10 0.77%
Dameron Hospital 0.00% 1,200 7 0.93%
O'Reilly Auto Parts 0.00%
O-G Packing Company 2,000 4 1.56%
Diamond Walnut 1,407 6 1.10%
Total 21,859 16.78% 22,348 17.40%
Sources: San Joaquin Partnership Survey, August 2021
City of Stockton ACFR, 2012
Note: Principal employers are based on best available information.

Percent
of Total City
Employment
City of Stockton
Table 18
Principal Employers
Current Year and Ten Years Ago
2021 2012
177

ATTACHMENT A
2021 2020 2019 2018 2017
Function/Program/Department:

Admin Svcs 78 74 73 74 76
City Attorney 10 12 10 11 11
City Clerk 7 7 5 6 7
City Council/Mayor 3 4 3 3 3
City Manager 30 26 28 28 28
Community Development 40 42 38 32 30
Community Services 101 101 98 101 79
Human Resources 22 32 25 27 29
Information Technology 39 41 40 41 39
Police:
433 432 469 470 445
189 216 193 193 195
Sworn
Non-sworn*
Animal control 11 12 11 12 12
Total P
olice 633 660 673 675 652
Fire:
171 160 177 169 171
0 21 32 20 37
Firefighters-sworn
Firefighters-auxiliary*
Non-sworn personnel 34 32 30 25 24
205 213 239 214 232
135 135 141 142 143
20 18 17 17 14
48 47 47 44 43
147 142 144 145 153
5 4 4 3 -
1523 1558 1585 1,563 1,539
Total Fire
Public Works
Economic Development
Water Utility
Wa
stewater Utility
Stormwater Utility
Total
*Auxiliary fire fighter program on hold due to
COVID-19
*Measure A excludes Non-Swo
rn Police Trainees
Source: City of Stockton Human Resources
Department
City of Stockton
Table 19
Full-Time Equivalent City Government Employees
By Function/Program/Department
Last Five Fiscal Years
Fiscal Year
178

ATTACHMENT A
2021 2020 2019 2018 2017
General government:

Building permits issued 8,815 7,378 7,380 7,538 7,132 Business tax certificates:

Retail sales and service 6,434 7,805 5,707 4,786 4,782 Rental Properties - Commercial and Residential 4,267 4,491 4,165 4,062 4,399 Wholesale 443 393 404 387 282 Manufacturers and processors 152 149 159 139 188 Professions 1,760 1,561 1,614 1,614 1,872 Miscellaneous contractors, peddlers, delivery vehicles, etc. 5,640 4,900 4,579 6, 419 4, 430 Improvement district and hotel/motel room tax 40 39 Utility billing/customer service:

Utility bills issued 1,186,454 1,000,452 1,051,220 1,169,160 1,100,374 Utility accounts opened and closed 46,905 17,582 20,818 23,828 23,188 New service locations (water) added 378 283 245 185 109 Delinquency Notices Sent - Active Accounts - 75,687 82,303 82,660 81,725 Water Service Terminated for Non-Payment - 3,055 4,989 4,921 4,796 Utility customer service calls received 49,999 45,231 54,695 54,613 41,717 Utility customers using automated voice response 802,378 709,134 849,706 895,369 845,359 Utility Customers Using Online Pmt/Account Access 44,467 32,852 32,893 32,960 33,068 Miscellaneous accounts receivable bills issued 14,770 14,024 37,057 35,880 47,199 Public safety:

Police:

Major reported crimes 12,548 15,654 17,233 15,613 15,940 Total arrests 8,272 11,152 10,945 11,543 11,497 Dispatched calls for service 207,355 176,311 183,834 186,795 149,527 Fire:

Interior structure fire calls 293 398 364 338 377 Non-structural fire calls 3,895 5,719 3,254 3,022 2, 296 Hazardous materials calls 301 593 331 259 232 Emergency medical calls 18,485 34,287 26,129 27,105 26,777 Total emergency calls 51,515 57,396 51,613 47,179 45,551 Total number of units dispatched 54,470 60,162 61,026 50,614 54,414 Public works:

Miles of streets resurfaced 22 28 7 6 5 Fleet job orders completed 6,617 7,764 8,765 9,937 10,082 City of Stockton
Table 20
Operating Indicators by Function/Program/Department
Last Five Fiscal Years
Fiscal Year

179

ATTACHMENT A
2021 2020 2019 2018 2017
Library:

Registered borrowers 155,999 152,726 175,374 197,830 190,049 Circulation of library materials 576,605 943,196 1,356,142 1,359,790 1,363,048 Reference, research and informational questions answered 43,122 70,583 104,670 143, 396 140, 784 Annual attendance at libraries 120,679 578,193 793,255 761,815 773,374 Number of programs offered 246 3,110 4,416 4,171 3,506 Annual attendance at programs 5,831 60,066 94,216 92,521 84,658 Parks and Recreation:

Golf rounds:

Swenson Park golf course 79,968 65,489 50,290 52,502 44,073 Van Buskirk golf course - 1,904 9,990 13,765 13,753 Trees planted 20 3 7 10 - Heritage tree removal-permits issued - 9 5 - 6 After school program registration (number of participants) 471 16,153 21,728 14,382 2,087 Day camp participants 444 2,753 3,685 5,062 3,106 Instructional classes - 1,781 2,986 6,569 1,414 Softball/baseball diamonds bookings 41 142 147 142 251 Showmobile (Mobile Stage) bookings 1 15 17 14 14 Community center bookings - 636 635 1,029 175 Picnic facility bookings 7 172 306 272 166 Adult sports (number of teams):

Softball 45 57 101 191 185 Basketball - 16 23 5 4 Volleyball - - - 6 - Youth sports (basketball, track, soccer, baseball, volleyball, flag football) (number of participants) 375 1,351 2,997 2,920 2,241 Table 20
Operating Indicators by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
City of Stockton

180

ATTACHMENT A
Parks and Recreation (cont.): 2021 2020 2019 2018 2017
Admissions to:

Pixie Woods 973 8,995 15,480 13,000 5,584 Senior Center memberships - 1,075 615 744 2,450 Civic Auditorium bookings 66 116 133 228 16 Parks and Recreation sponsored events 1 15 22 10 3 Weber Point Events Center bookings 1 15 15 20 9 Economic Development: (1)
Rental Housing Units - 127 51 - 176 Owner Housing (Emergency Repair or Rehabilitation) 2 2 5 2 6 Down Payment Assistance - - 3 - - Special Needs (Homes Repaired or Rehabilitated) - - 2 5 9 Public Facilities (Rehabilitated or Constructed) - 5 1 2 1 Façade Program (Commercial Façade Repair/Rehabilitated) 2 2 1 5 2 Public Services Provided 83,553 47,605 23,760 129,584 120,765 Homeless Services Provided 4,806 5,413 4,859 4,464 4,578 Meals Provided to Homeless 126,408 41,882 39,848 23,541 - Jobs Created and/or Retained 1 2 - 5 - Business Assisted (Entrepreneur Program) 157 229 292 475 401 Water utility:

New connections (DUE's) (2) 589 105 221 422 106 Water main breaks 18 15 21 15 21
Wastewater utility:

Average daily influent (million gallons per day) 25mgd 27 mgd 30 mgd 30 mgd 29mgd Source: City of Stockton Departments
City of Stockton
Table 20
Operating Indicators by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
(1) Housing Dept. was abolished and Economic Development Dept. was established in FY 2010. (2) Changed reporting to Dwelling Unit Equivalent (DUE) in 2011 to more accurately reflect new connections. Not all single water connections are equal to one dwelling unit equivalent (DUE), or single family residence. For example, a 12" meter is equal to 209 single family residential connections. In 2011, there were 115 new connections which were equal to 654 DUE's.

181

ATTACHMENT A
2021 2020 2019 2018 2017
General government:

Land use-square miles:

Residential 24 25 25 25 24
Mixed use 4 4 4 4 4
Commercial 4 4 4 4 4
Industrial 14 13 13 13 13
Institutional 4 4 4 4 4
All other uses 3 3 3 3 4
Total square miles 53 53 53 53 53
Public safety:

Police:

Facilities:

Stations and substations 1 1 1 1 1 Animal control facility 1 1 1 1 1 Police training facility (pistol range) 1 1 1 1 1 Vehicles:

Marked patrol cars 181 212 192 217 175 Motorcycles and scooters 27 27 32 30 30 Animal control vehicles 11 9 8 8 8 VIPS vehicles 5 6 7 7 7
Other automobiles 198 213 231 208 209 Other mobile units (all others) 24 15 22 22 21 Public area security cameras 356 356 345 338 324 Fir
e:

Fire stations 12 12 12 12 12
Training facilities 1 1 1 1 1
Fire hydrants 9220 9177 9218 9,080 9,054 Public works:

Miles of streets 781 769 769 769 769
Tr
affic signals 316 316 310 307 307
Street light fixtures 19,279 19,279 19,208 19,137 19,206 City of Stockton
Table 21
Capital Asset Statistics by Function/Program/Department Last Five Fiscal Years
Fiscal Year

182

ATTACHMENT A
2021 2020 2019 2018 2017
Parks and recreation:

Arena 1 1 1 1 1
Ballpark 1 1 1 1 1
Baseball/softball diamonds 54 54 54 54 54 Bike/jogging paths (miles) 20 20 20 20 20 Boating facilities - launch lanes 12 12 12 12 12 Children's Museum 1 1 1 1 1
Civic Auditorium (2,800 capacity) 1 1 1 1 1 Community centers 5 5 5 5 5
Dog Areas 3 3 3 3 3
Family camps 1 1 1 1 1
Golf course acreage 371 371 371 371 371 Group picnic areas 31 31 31 31 31
Gymnasium 5 5 5 5 5
Ice rink 1 1 1 1 1
Municipal golf courses 3 3 3 3 3
Park acreage 625 625 625 625 625
Parks and squares 67 67 67 67 67
Philomathean Club 1 1 1 1 1
Pl
aygrounds 63 71 71 71 71
Senior center 1 1 1 1 1
Showmobile (Mobile Stage) 1 1 1 1 1 Skateboard park 1 1 1 1 1
Sw
imming pools 7 7 7 7 7
Teen Center 1 1 1 1 1
Tennis courts 67 67 67 67 67
Theater (Bob Hope) 1 1 1 1 1
Weber Point Events Center 1 1 1 1 1 Consolidated landscape maintenance districts:

Streetscaping (square feet) 3.6 million 3.6 million 3.6 million 3.6 million 3.6 million Public open spaces (acreage) 70 70 70 70 70 City of Stockton
Table 21
Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year

183

ATTACHMENT A
2021 2020 2019 2018 2017
Library:

City branches 8 8 7 6 5 Library mobile units 2 2 2 2 2 San Joaquin County branches 8 8 8 8 8 Total items in collection 704,864 875,434 772,206 856,101 873,377 Cargo delivery van 2 2 2 2 2 Cargo van 1 1 1 1 1 Undeveloped land for branch library 2 2 2 2 2 Integrated library system 1 1 1 1 1 Microform readers - 7 7 7 7 Microform readers/printers 6 7 7 7 7 Self check out machines 21 22 24 28 28 Water utility:

Water main lines (miles) 702 702 668 668 668 Storage capacity (thousand gallons) 26,200 26,200 26,200 26,200 26,200 Water wells (active) 20 20 20 21 21 Wat
er reservoirs 8 8 8 8 8 Wastewater utility:

Wastewater main lines (miles) 919 887 883 899 899 Treatment capacity (million gals/day) 55 55 55 55 55 Wastewater pump stations 28 27 27 27 27 Stormwater utility:

Stormwater main drain lines (miles) 627 627 626 626 626 Stormwater pump stations 73 73 73 74 74 Parking Authority:

Parking spaces 5,440 5,440 5,440 5,396 5,783

Parking lots & garages 21 21 21 20 23 Source: City of Stockton Departments
Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
Table 21
City of Stockton

184

ATTACHMENT A

City Council and Concurrent AuthoritiesMarch 22, 2022

City Council and Concurrent Authorities
March 22, 2022