City Council and Concurrent Authorities
February 7, 2023

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

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

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

ATTACHMENT A 1596
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, and the Schedule of Changes in Net Pension Liability and Related Ratios, and the Schedule of Contributions - Pensions as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and the schedule of sources and uses – Measure A and B are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of sources and uses – Measure A and B are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

ATTACHMENT A 1597
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
January 30, 2023
ATTACHMENT A 1598

MANAGEMENT'S DISCUSSION AND ANALYSIS
ATTACHMENT A 1599
ATTACHMENT A 1600
5 MANAGEMENT’S DISCUSSION AND ANALYSIS

UNAUDITED
JUNE 30, 2022

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, 2022. 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, 2022, total assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources by $1.78 billion. Of this amount, $29.3 million represents the unrestricted net position, $549.8 million is restricted for City's ongoing obligation related to programs with external restrictions, and $1.2 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 $510.1 million and include program revenues of $220.7 million and general revenues of $289.0 million. Governmental expenses were $321.6 million. • Business-type program revenues, and investment earnings were $164.5 million, while business-type expenses were $135.9 million.

Fund Level:
 The City’s Governmental Funds reported a combined ending fund balance of $607.1 million at the close of June 30, 2022, an increase of $101.4 million compared with the prior fiscal year. The General Fund balance in this report, as of June 30, 2022, was $178.6 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 fund the priority one working capital reserve at $47.2 million, fully fund known contingency reserves at $55.3 million, and increased the risk-based reserves to $10.8 million.  The total Governmental Fund revenues increased from the prior fiscal year by 15.5 percent. A large portion of this increase is attributable to special federal grants and subsidies for fiscal year 2021-22 with approximately $75.5 million related to COVID-19 pandemic recovery efforts. Other large increases were due to sales tax revenues, franchise fees, charges for services; however, the city saw a loss in investment earnings due to the fair market value adjustment.

The total Governmental Fund expenditures increased by 9.4 percent compared to the prior fiscal year primarily due to a $26.9 million increase in capital outlay expenditures. General government and parks and recreation expenditures also experienced post pandemic growth. The increases in all three of these categories reflect 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.

ATTACHMENT A 1601
6 OVERVIEW OF THE FINANCIAL STATEMENTS, CONTINUED
The basic 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 government-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 (“ACFR”) includes the financial activity of the separate legal entity controlled by the City, the Stockton Public Financing 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 obligations are made by the Successor Agency Countywide Oversight Board, which is comprised of members representing the interests of local jurisdictions affected by redevelopment activities and revenue claims.

The government-wide financial statements can be found on pages 17-19 of this report.

Fund Financial Statements:

A fund is a group 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 demonstrate 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 three types of fund financial statements: Governmental Funds, Proprietary Funds, and Fiduciary Funds.

Governmental Funds – Governmental Fund statements tell how general government services such as police, fire, and public 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 spendable 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 Governmental Fund Statements.

The basic Governmental Fund Financial Statements can be found on pages 22-25 of this report.

ATTACHMENT A 1602
7 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 reported in Proprietary Funds. Proprietary Fund statements, like the government-wide statements, provide short-term and long-term financial information about the activities the City operates like businesses, such as utility services, parking facilities, and marina operations.

The basic Proprietary Fund financial statements can be found on pages 28-37 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 Agency 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 government-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 pages 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 understanding of the financial information provided in the government-wide and fund financial statements.

The notes to the financial statements can be found on pages 45-107 of this report.

Other information
In addition to the basic financial statements, this report presents certain required 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 participation in the PERS and PARS defined benefit pension plans.

Required supplementary information can be found on pages 109-127 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
The City’s net position may serve over time as a useful indicator of a government’s financial health or financial position. As of June 30, 2022, the City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $1.8 billion, which is an increase of $216.7 million or 13.8 percent compared to the prior fiscal year.

ATTACHMENT A 1603
8 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, 2022, and 2021 (amounts in thousands):

The primary 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 at $1.2 billion or 67.5 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 $549.8 million or 30.9 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 is $29.3 million or 1.6 percent of the total net position. Information about changes in net position for FY 2021-22 and FY 2020-21 is summarized on the following page. The ACFR discusses the reasons for the changes in the sections for governmental activities and business-type activities. 2022 2021 2022 2021 2022 2021
Assets:

Current and other assets $ 936,598 $ 840,374 $ 269,527 $ 314,829 $ 1,206,125 $ 1,155,203 Capital assets 822,615 794,633 819,159 769,890 1,641,774 1,564,523 Total assets 1,759,213 1,635,007 1,088,686 1,084,719 2,847,899 2,719,726 Deferred Outflow of Resources:

Unamortized loss on refunding of debt - - 13,645 14,555 13,645 14,555 Pension-related deferred outflows of resources 59,815 76,508 2,989 2,528 62,804 79,036 Total Deferrals-Outflows 59,815 76,508 16,635 17,083 76,450 93,591 - - Liabilities:

Current and other liabilities 110,864 118,953 40,483 40,847 151,347 159,800 Long-term obligations 113,328 116,888 385,126 406,979 498,454 523,867 Net Pension liability 313,515 533,858 8,391 15,774 321,906 549,632 Total liabilities 537,707 769,699 434,001 463,600 971,708 1,233,299 - - Deferred Inflow of Resources:

Pension-related deferred inflows of resources 162,705 11,688 6,373 1,405 169,078 13,093 Leases 1,449 1,520 59 86 1,508 1,606
Total Deferrals Inflows 164,154 13,208 6,432 1,491 170,586 14,699 - - Net position:

Net investment in capital assets 764,271 733,822 438,675 365,919 1,202,946 1,099,741 Restricted 524,406 458,650 25,394 46,241 549,800 504,891 Unrestricted (deficit) (171,510) (263,864) 200,819 224,551 29,309 (39,313) Total net position $ 1,117,167 $ 928,608 $ 664,888 $ 636,711 $ 1,782,055 $ 1,565,319 Governmental
Activities
Business-Type
Activities Total
ATTACHMENT A 1604
9 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):
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:

Charges for services 72,491$ 65,693$ 156,777$ 148,966$ 229,268$ $ 214,659 Operating grants and contributions 100,879 51,328 2,500 - 103,379 51,328 Capital grants and contributions 47,352 39,065 12,232 13,263 59,583 52,328 General revenues:

Property taxes 41,066 38,523 - - 41,066 38,523
Utility user taxes 38,328 36,414 - - 38,328 36,414
Sales and use taxes (City levied) 75,037 68,639 - - 75,037 68,639 Franchise taxes 21,186 16,901 - - 21,186 16,901
Business licenses 15,905 15,695 - - 15,905 15,695
Hotel/motel room taxes 3,620 2,860 - - 3,620 2,860
Document transfer taxes 1,626 1,222 - - 1,626 1,222
Other taxes 4,016 2,874 - - 4,016 2,874
Motor vehicle fees in lieu 27,310 27,757 - - 27,310 27,757 Sales and use taxes (State levied) 76,239 65,201 - - 76,239 65,201 Investment earnings (25,552) 14,086 (7,018) 57 (32,570) 14,143 Miscellaneous 10,369 11,105 - - 10,369 11,105
Gain (loss) on disposal of capital assets (132) 147 - (132) - 147 Total revenues 509,740 457,510 164,489 162,286 674,229 619,796 Expenses - - -
General government 72,154 74,313 - - 72,154 74,313
Public safety 170,563 217,954 - - 170,563 217,954
Public works 43,601 55,086 - - 43,601 55,086
Library 13,107 12,792 - - 13,107 12,792
Parks and recreation 14,300 11,526 - - 14,300 11,526
Interest and fiscal charges 7,894 4,373 - - 7,894 4,373 Water utility - - 54,532 54,266 54,532 54,266
Wastewater utility - - 66,991 61,124 66,991 61,124
Stormwater utility - - 7,288 6,759 7,288 6,759
Central parking district - - 5,687 4,995 5,687 4,995
Other - - 1,376 1,667 1,376 1,667
Total expenses 321,619 376,044 135,873 128,811 457,493 504,855 Increase/(decrease) in net - - -
position before transfers 188,121 81,466 28,616 33,475 216,737 114,941 Transfers 1,751 438 (1,751) (438) - -
Change in net position 188,559 83,217 28,178 31,724 216,737 114,941 Net position, beginning 843,788 - - 604,942 - 1,448,730 Prior period adjustment 1,603 - - 45 - 1,648
Net position, beginning, as restated 928,608 845,391 636,710 604,987 1,565,318 1,450,378 Net position, end of year $ 1,117,167 928,608$ 664,888$ 636,711$ 1,782,055$ 1,565,319$ Governmental Business-Type
Activities Activities Total
ATTACHMENT A 1605
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS, CONTINUED
Analysis of Net Position, Continued:

Governmental activities: The change in net position increased by $188.6 million compared to the prior fiscal year due to these following variances:
• Total governmental activities revenues increased by $52.2 million or 11.4 percent compared to the prior fiscal year. The increase were mostly attributable to additional operating and capital grants and state & city levied sales and use taxes. However, due to the low interest rate environment, there was $39.6 million revenue decrease in investment income due to a fair market value adjustment. • Total governmental activities expenses show a decrease of $54.4 million. A large part of this decrease is attributed to the pension credit recorded due to the PERS actual investment earnings higher than the expected rate of return. .

Business-type activities: The change in net position increased by $28.2 million compared to the prior fiscal year primarily due wastewater 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 22.

Governmental Funds
As of June 30, 2022, the City’s Governmental Funds reported a combined ending balance of $607.1 million, an increase of $101.4 million compared to the prior fiscal year. The total fund balance of the Governmental Funds consists of the following:
 The non-spendable fund balance of $2.2 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 $433.6 million that is based on restrictions imposed by external parties or enabling legislation.
 Committed fund balance of $123.8 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 $4.3 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 $43.2 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.

ATTACHMENT A 1606
11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED
Governmental Funds, Continued:

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

The graph below shows 2022 revenue categories as a percent of the total.

Revenue by Source Amount
Percent of
Total Amount
Percent of
Total Amount
Percent of
Change
Property taxes 41,066$ 8.1% 38,523$ 8.7% 2,543 $ 6.6%
Utility user 38,328 7.5% 36,414 8.2% 1,914 5.3%
Sales tax - levied by City 82,951 16.3% 68,639 15.5% 14,312 20.9% Franchise fees 19,932 3.9% 16,901 3.8% 3,031 17.9%
Business license 15,905 3.1% 15,695 3.6% 210 1.3%
Transient occupancy tax 3,620 0.7% 2,860 0.6% 760 26.6% Document Transfer/other 5,641 1.1% 4,095 0.9% 1,546 37.8% License and permits 9,129 1.8% 7,670 1.7% 1,459 19.0%
Intergovernmental 246,713 48.4% 194,701 44.1% 52,012 26.7% Charges for services 39,532 7.8% 31,330 7.1% 8,202 26.2% Fines and forfeitures 2,001 0.4% 379 0.1% 1,622 428.1%
Use of money and property 9,955 2.0% 5,731 1.3% 4,224 73.7% Interest income (13,673) -2.7% 7,785 1.8% (21,458) -275.6% Refunds and reimbursements 0.1% 602 550 0.1% (52) -8.6% Miscellaneous 8,258 1.6% 10,189 2.3% (1,931) -18.9%
Total $ 509,910 100.0% 441,514$ 100.0% 68,396 $ 15.5%
2022 2021 Increase/(Decrease)
ATTACHMENT A 1607
12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS, CONTINUED
Governmental Funds, Continued:

The following 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 $25.3 million or 19 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 reporting by a taxpayer in the prior fiscal year continued to result in additional tax revenues being allocated directly to the City rather than shared through a pool.
• Federal grants and other intergovernmental revenues were approximately $41.0 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 and industrial development. • Due to the historic low interest rate environment, interest income resulted in a deficit due to the fair market value adjustment.
• Charges for services increased by $8.2 million or 26 percent over the prior year primarily due to more Public Facility Fee and Development Services fees generated from the issuance of more commercial and industrial building permits in FY 2022.

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

The following bullets explain the expenditures that changed significantly compared with the prior fiscal year. • General government expenditure increased by $4.6 million and a large portion of this is attributed to the special grants.
• Capital outlay expenses increased with a corresponding decrease in Public Works. A change in reporting moved Capital Outlay expenses out of the Public works function. The significant Capital outlay changes over prior year is attributable to major projects such as construction of the Northeast Library and Recreation center, Bicycle and Pedestrian Path development, and Federal-Aid Urban (FAU) street resurfacing activities. • Library and Recreation expenditures increased over prior year with the restoration of programing that was suspended at library and recreation facilities during FY 2021 due to COVID restrictions.

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

General government $ 76,830 18.8% 72,185 $ 19.3% 4,645 $ 6.4% Public safety 206,107 50.4% 205,923 55.1% 184 0.1%
Public works 34,263 8.4% 41,960 11.2% (7,697) -18.3%
Library 14,658 3.6% 12,762 3.4% 1,896 14.9%
Parks and recreation 14,552 3.6% 8,207 2.2% 6,345 77.3% Capital outlay 53,033 13.0% 26,127 7.0% 26,906 103.0%
Debt service 9,340 2.3% 6,422 1.7% 2,918 45.4%
Total $ 408,783 100.0% 373,586 $ 100.0% 35,197 $ 9.4%
2022 2021 Increase/(Decrease)
ATTACHMENT A 1608
13 General Fund
Below is a graph that depicts the change in General Fund balances between FY 2021-22 and FY 2020-21. The committed and unassigned balances have increased from the prior fiscal year.

Fund Balance
(in millions)

NOTE: Does not include PARS 115 Trust
The City’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.

General Fund revenues were $304.0 million at the close of June 30, 2022, an increase of $17.6 million (6.1 percent) compared to the prior fiscal year. Significant changes in General Fund revenues compared with the previous fiscal year include:
 Sales tax levied by the City and the State was up significantly this year ($15.6 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.  Property tax revenues increased by $2.5 million due to a steady increase in property values and increased new non-residential construction.
 Use of money and property revenue increased $3.7 million over prior year primarily due to higher revenues generated at entertainment venues as a result of the entertainment industry experiencing a recovery from the impacts of the COVID pandemic.
 Due to the low interest rate environment, interest income from the City’s short- and long-term investment portfolios resulted in a deficit when compared to the prior fiscal year due to the fair market value adjustment.

General Fund expenditures were $244.2 million, an increase of $6.0 million or 2.5 percent compared to the prior fiscal year. General government expenses decreased by $6.2 million compared to the last fiscal year. Public safety expense growth of $3.6 million was primarily the result of health benefits, insurance premiums, and overtime expenses. Parks and recreation expenses increased $6.4 million over prior year primarily due to the reopening of entertainment venues from the impacts of the COVID pandemic.

ATTACHMENT A 1609
14 Proprietary Funds
The City’s Proprietary Fund Financial Statements provide the same type of information found in the GovernmentWide Financial Statements but in more detail. At the end of June 30, 2022, business-type activities' net position was $664.9 million, an increase of $28.2 million or 4.4 percent compared to the prior fiscal year.

The assets and deferred outflows of resources increased by a combined total of $3.5 million. Of this amount, the current cash and investments and other existing assets decreased by $45.3 million, and non-current assets, including capital assets and deferred outflows, increased by $48.8 million.

The liabilities and deferred inflows of resources decreased by $21.8 million due primarily to the principal payments made on debt and pension-related adjustments.

GENERAL FUND BUDGETARY HIGHLIGHTS
The City’s FY 2021-22 General Fund Adopted Budget funded the City’s most pressing needs in support of the Council’s strategic priorities. However, it continued to be constrained by the City’s long-term financial outlook especially in consideration of future pension and labor costs. The FY 2021-22 budget was developed as the City continued to respond to a once-in-a-century pandemic crisis with a focus on moving forward through the crisis and into recovery. With an unprecedented amount of state and federal dollars coming in to provide relief and recovery to Stockton citizens, capacity to deliver new operating budget programs was limited. The budget included some incremental service enhancements and high-priority one-time appropriations. This analysis should be read in conjunction with the General Fund Budgetary Information beginning on page 109.

The General Fund’s original budgeted revenues totaled $267.5 million and was decreased to $267.0 million during the fiscal year. The General Fund ended the fiscal year with total revenues of $304.0 million, reflecting a $37.0 million, or 13.9 percent, increase over the final budget. The most significant revenue variance was sales tax revenues at $26.9 million more than the budget. The revenue categories hardest hit by the COVID pandemic, Hotel Motel Taxes and the Document transfer taxes, recovered to pre-pandemic levels in FY 2021-22.

Collection of Business license taxes improved during the pandemic as businesses had to show proof of a license for federal assistance. This trend continued into FY 2021-22 with revenues slightly lower than the prior year still exceeding the budget by $4.3 million. The next largest budget variances were in Property taxes and Utility user taxes categories which benefited from new residential and industrial construction.

The General Fund’s original expenditure budget of $265.5 million was adjusted by encumbrances and commitments carried forward from the prior year for a total final budget of $276.0 million. All General Fund departmental activities ended the fiscal year below budget. The debt service category shows an overage due to the booking of lease related entries for GASB 87 implementation and interest expense on a loan to the Emergency Communications subfund anticipated to be repaid in FY 2022-23. Actual expenditures and transfers-out were lower than the final approved budget appropriations by $102.8 million, or 31.9 percent. Of this variance, $48.2 million in appropriations rolled into FY 2022-23 for encumbrances, capital projects, and specific City Council authorized activities. General Government departments achieved a savings of $6.3 million, Public Works activities were under budget by $1.6 million, Parks and recreation activities were under budget by $3.0 million, Library expenses were $2.2 million below budget, and $18.1 million was saved in Public Safety. A significant contributing factor to the savings was staff vacancies. Approximately $16.7 million of the savings was the result of higher-than-anticipated vacancies across all General Fund departments. Many local governments are experiencing difficulties filling full-time positions in a very tight labor market. The number of full-time employees in FY 2021-22 was lower than the last five fiscal years and authorized positions have increased during this period.

ATTACHMENT A 1610
15 The City’s General Fund balance at June 30, 2022, was $171.3 million on a budgetary basis, which is an increase of $40.4 million from the prior year. The City Council authorized $29.6 million of this increase to be added to General Fund reserves for a total funded reserve of $113.3 million. The ACFR reporting of General Fund balance at $171. 3 million 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 ($132 million) separate from ancillary services of libraries, recreation, etc.

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, 2022, 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, construction in progress, and leases.

The total change in the City’s net investment in capital assets for the current fiscal year was an increase of 4.9 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 7 - Capital Assets of this report.

Bond Indebtedness
At the end of the fiscal year, the City’s total outstanding net bonded debt, including bankruptcy settlements, was $453.5 million. Of this amount, $57.8 million is related to governmental activities, and $395.7 million are debt obligations of business-type activities.

Governmental activities bonded indebtedness decreased by $2.1 million because of the scheduled principal payments. 2022 2021 2022 2021 2022 2021
Land 38,197 $ 38,197 15,127 $ 15,127 53,324 $ 53,324
Intangible Assets 4,355 4,355 - - 4,355 4,355
Building and
Improvements 180,483 171,459 603,076 623,065 783,558 794,524 Machinery and
Equipment 28,780 28,124 4,866 5,574 33,645 33,698
Infrastructure 377,710 388,419 - 377,710 - 388,419
Construction
in Progress 192,072 162,225 193,438 123,266 385,510 285,491 Lease Assets 1,020 1,855 2,651 2,858 3,671 4,713
Total $ 822,615 $ 794,634 $ 819,159 769,890$ $ 1,641,774 $ 1,564,524 Business-Type
Activities
Governmental
Activities Total
ATTACHMENT A 1611
16 Business-type activities bonded indebtedness also decreased by $22.6 million due to the scheduled debt service payments for the enterprise debt and refund the 2019 Bond anticipation note.

Governmental outstanding net bonded debt of $57.8 million includes $53.1 million in settlement liability to the bond insurer (Assured Guaranty) for 2007 bonds adjusted in bankruptcy.

Business-type activities outstanding net bonded debt obligations of $395.8 million includes $196.0 million of revenue bonds of the Water Utility, $157.0 million in revenue bonds and EPA WIFIA loan for the Wastewater Utility, and $29.3 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 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 $91.3 million is reported separately in a Private Purpose Trust Fund. The balance outstanding at June 30, 2022, includes $80.2 million of tax-exempt tax allocation bonds issued to refinance revenue bonds for various former redevelopment projects and $11.1 million of taxable tax allocation bonds issued to refinance revenue bonds for various housing projects.

Additional information on the City’s long-term debt can be found in Note 8 - Long-Term Liabilities of this report.

Requests for Information
This financial 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.

Financial reports are available on the City’s website at:
http://www.stocktongov.com/government/departments/adminservices/finrep.html ATTACHMENT A 1612

BASIC FINANCIAL STATEMENTS
ATTACHMENT A 1613
ATTACHMENT A 1614

GOVERNMENT-WIDE FINANCIAL STATEMENTS
ATTACHMENT A 1615
ATTACHMENT A 1616
Governmental Business-Type
Activities Activities Totals
Cash and investments 628,464,543 $ 239,215,234 $ 867,679,777 $ Restricted cash and investments 71,545,010 6,465,449 78,010,459 Interest receivable 1,770,123 575,710 2,345,833
Accounts receivable, net 19,755,699 25,684,153 45,439,852 Due from other governments, net 48,196,724 569,530 48,766,254 Internal balances 7,011,332 (7,011,332) -
Inventory of supplies 701,029 2,046,281 2,747,310
Prepaid items 1,643,286 4,813,959 6,457,245
Lease receivable 1,473,569 59,411 1,532,980
Advance deposits 2,323,748 89,521 2,413,269
Loans to Successor Agency, net 1,106,580 - 1,106,580
Loans to property owners, net 149,435,642 190,000 149,625,642 Capital assets:

Nondepreciable and nonamortizable 234,623,105 208,565,593 443,188,698 Depreciable and amortizable, net 587,991,781 610,593,074 1,198,584,855 Total assets 1,088,685,910 1,759,212,844 2,847,898,754
Unamortized loss on refunding of debt 13,645,282 - 13,645,282 Pension-related deferred outflows of resources 59,814,713 2,989,264 62,803,977 Total deferred outflows of resources 59,814,713 16,634,546 76,449,259 Accounts payable and accrued expenses 28,986,863 19,232,407 48,219,270 Accrued payroll and benefits 3,067,329 1,319,814 4,387,143 Due to other governments/agencies 5,211,729 95,237 5,306,966 Accrued interest 1,666,148 3,670,399 5,336,547
Deposits and other liabilities 3,048,328 3,248,678 6,297,006 Retention payable 761,398 851,201 1,612,599
Unearned revenue 46,309,567 46,309,567 -
Long-term liabilities:

Due within one year:

Compensated absences 6,724,018 917,209 7,641,227
Claims payable 12,978,791 12,978,791 -
Long-term debt 2,109,339 11,148,434 13,257,773
Due in more than one year:

Compensated absences 5,231,183 522,697 5,753,880
Claims payable 52,421,442 52,421,442 -
Long-term debt 55,674,921 384,603,178 440,278,099
Aggregate net pension liability 313,515,372 8,391,374 321,906,746 Total liabilities 537,706,428 434,000,628 971,707,056
162,705,190 6,372,566 169,077,756
1,449,407 59,083 1,508,490
Total deferred inflows of resources 164,154,597 6,431,649 170,586,246 Net investment in capital assets 764,271,388 438,675,449 1,202,946,837 Restricted 524,405,555 25,394,011 549,799,566
Unrestricted (deficit) (171,510,411) 200,818,719 29,308,308 Total net position $ 664,888,179 1,117,166,532 $ 1,782,054,711 $ City of Stockton
Statement of Net Position
June 30, 2022

NET POSITION

DEFERRED INFLOWS OF RESOURCES

LIABILITIES

DEFERRED OUTFLOWS OF RESOURCES
ASSETS
Pension-related deferred inflows of resources
Leases
See accompanying Notes to the Basic Financial Statements. 17 ATTACHMENT A 1617
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions PRIMARY GOVERNMENT:

Governmental activities:

General government 72,154,112 $ 31,122,550 $ 91,367,121 $ 75,179 $ Public safety 170,563,405 18,688,078 9,101,014 -
Public works 43,601,040 14,290,951 296,366 47,276,467
Library 13,106,761 7,537,371 59,292 -
Parks and recreation 14,300,010 852,433 55,410 -
Interest and fiscal charges 7,894,016 - - -
Total governmental activities 72,491,383 321,619,344 100,879,203 47,351,646 Business-type activities:

Water utility 54,531,692 66,012,825 47,298 7,693,391
Wastewater utility 66,990,653 78,508,927 2,253,527 4,155,076 Stormwater utility 7,288,385 6,136,802 - 383,023
Parking Authority 5,687,097 5,690,268 198,735 -
Downtown Marina 1,105,483 395,336 - -
Golf Courses 270,007 32,394 - -
Total business-type activities 135,873,317 156,776,552 2,499,560 12,231,490 Total $ 229,267,935 457,492,661 $ 103,378,763 $ 59,583,136 $

Program Revenues
City of Stockton
Statement of Activities
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 18 ATTACHMENT A 1618
Governmental Business-Type
Functions/Programs Activities Activities Totals
PRIMARY GOVERNMENT:

Governmental activities:

General government 50,410,738 $ - $ 50,410,738 $
Public safety (142,774,313) - (142,774,313)
Public works 18,262,744 - 18,262,744
Library - (5,510,098) (5,510,098)
Parks and recreation (13,392,167) - (13,392,167)
Interest and fiscal charges (7,894,016) - (7,894,016)
Total governmental activities (100,897,112) (100,897,112) - Business-type activities:

Water utility 19,221,822 - 19,221,822
Wastewater utility 17,926,877 - 17,926,877
Stormwater utility - (768,560) (768,560)
Parking Authority - 201,906 201,906
Downtown Marina - (710,147) (710,147)
Golf Courses - (237,613) (237,613)
Total business-type activities 35,634,285 - 35,634,285
Total net (expense) revenue (100,897,112) 35,634,285 (65,262,827) General revenues and transfers:

General revenues:

Taxes:

Property 41,066,425 41,066,425 -
Utility user 38,328,240 38,328,240 -
Sales - levied by City 75,036,888 75,036,888 -
Franchise fees 21,185,769 21,185,769 -
Business license 15,905,391 15,905,391 -
Transient occupancy tax 3,619,973 3,619,973 -
Document transfer 1,625,553 1,625,553 -
Other 4,015,502 4,015,502 -
Shared revenue:

Vehicle license fees 27,310,329 27,310,329 -
Sales and use tax levied by state 76,238,894 76,238,894 - Investment earnings (loss) (25,551,559) (7,018,187) (32,569,746) Miscellaneous 10,368,627 10,368,627 -
Gain (loss) on disposal of capital assets (132,415) (132,415) - Transfers 438,091 (438,091) -
Total general revenues and transfers 289,455,708 (7,456,278) 281,999,430 Changes in net position 188,558,596 28,178,007 216,736,603 Net position:

Beginning of year, as restated (Note 19) 928,607,936 636,710,172 1,565,318,108 End of year $ 664,888,179 1,117,166,532 $ 1,782,054,711 $ Change in Net Position
Net (Expense) Revenue and
City of Stockton
Statement of Activities (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 19 ATTACHMENT A 1619
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20 ATTACHMENT A 1620

FUND FINANCIAL STATEMENTS
ATTACHMENT A 1621
ATTACHMENT A 1622
Governmental Fund Types
The City's major governmental funds include:

General Fund
Federal Housing Grants Special Revenue Fund
Special Grants Special Revenue Fund
Capital Improvement Capital Projects Fund
Individual non-major funds are presented in the Supplementary Information section.

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 transfers from other City governmental funds.

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.

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.

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 otherwise accounted in other special revenue funds.

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

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 provides down payment 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).
21 ATTACHMENT A 1623
Capital Projects
Federal Other Total
General Housing Special Capital Governmental Governmental Fund Grants Grants Improvement Funds Funds
ASSETS
Cash and investments 160,301,427 $ 5,337,114 $ 81,110,893 $ 26,033,164 $ 213,972,050 $ 486,754,648 $ Cash and investments with fiscal agents - 1,576,679 - - - 1,576,679 Receivables, net:

Interest 678,558 1,634 - 3,493 526,021 1,209,706
Accounts and other receivables 16,574,676 20,722 125,435 - 2,694,406 19,415,239 Lease 1,459,590 13,979 1,473,569
Due from other governments, net 24,230,421 - 1,333,882 14,160,616 8,471,805 48,196,724 Inventory of supplies 521,303 - - - - 521,303
Prepaid items 24,042 - 1,832,820 - 25,315 1,882,177
Advance deposits 1,532,011 - 108,354 - 125,387 1,765,752 Loans to Successor Agency, net - - - - 1,106,580 1,106,580 Loans to property owners, net - 80,384,153 - - 69,051,489 149,435,642 Total assets $ 87,320,302 205,322,028 $ 84,511,384 $ 40,197,273 $ 295,987,032 $ 713,338,019 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 9,908,303 903,090 3,173,202 6,868,148 4,918,878 $ 25,771,621 $ Accrued payroll and benefits 1,022,674 30,397 108,291 117,050 1,299,813 2,578,225 Due to other funds 495,600 - - - 495,600 -
Due to other governments 3,281,041 5,957 - 1,924,731 - 5,211,729 Deposits and other liabilities 1,983,942 - - 1,015,282 - 2,999,224 Retention payable - - 761,398 - 761,398 -
Unearned revenue 1,882,498 44,427,069 - - 46,309,567 -
Total liabilities 18,574,058 939,444 47,708,562 7,746,596 9,158,704 84,127,364 Deferred inflows of resources:

Unavailable revenue - other 6,699,134 - 12,856,485 - 1,136,761 20,692,380 Lease 1,435,443 13,964 1,449,407
Total deferred inflows of resources 8,134,577 - 12,856,485 - 1,150,725 22,141,787 Fund Balances:

Nonspendable 2,077,356 - - 150,702 - 2,228,058
Restricted 5,289,369 86,380,858 36,802,822 19,594,192 285,526,901 433,594,142 Committed 123,753,548 - - - 123,753,548 -
Assigned 4,284,719 - - - 4,284,719 -
Unassigned 43,208,401 - - - 43,208,401 -
Total fund balances 178,613,393 86,380,858 36,802,822 19,594,192 285,677,603 607,068,868 Total liabilities, deferred
inflows of resources and fund $ 87,320,302 205,322,028 $ 84,511,384 $ 40,197,273 $ 295,987,032 $ 713,338,019 $ Special Revenue Funds
City of Stockton
Balance Sheet
Governmental Funds
June 30, 2022
Major Funds
See accompanying Notes to the Basic Financial Statements. 22 ATTACHMENT A 1624
Total Fund Balances - Total Governmental Funds $ 607,068,868 Amounts reported for governmental activities in the Statement of Net Position are different because:

Non-depreciable (net of $22,097,132 reported in the Internal Service Funds) 212,525,973 566,368,589
197,665,965
Compensated absences (net of $438,989 reported in Internal Service Funds) (11,516,212) (57,582,100)
(1,651,082)
(313,515,372)
59,814,713
(162,705,190)
Unavailable revenue - other 20,692,380
Net position of governmental activities $ 1,117,166,532 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 and amortizable(net of accumulated depreciation and amortization $440,331,590, and net capital assets $21,623,192 reported in the Internal Service Funds) Bonds payable and other long-term debt (net of $202,160 in leases reported in Internal Service Funds) Accrued interest payable (net of $15,066 reported in Internal Service Funds) City of Stockton
Reconciliation of the Balance Sheet of Governmental Funds to the Government-Wide Statement of Net Position
June 30, 2022
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.

See accompanying Notes to the Basic Financial Statements. 23 ATTACHMENT A 1625
Capital Projects
Federal Total
General Housing Special Capital Other Governmental
Fund Grants Grants Improvement Governmental Funds
REVENUES:

Taxes:

Property $ 41,066,425 $ - $ - $ - $ 41,066,425 - $
Utility user - 38,328,240 - - - 38,328,240
Sales - levied by City - 45,412,129 - - 37,538,549 82,950,678 Franchise fees 17,925,299 - - - 2,006,664 19,931,963
Business license 14,024,356 - - - 1,881,035 15,905,391
Hotel/motel room 3,619,973 - - - - 3,619,973
Document transfer - 1,625,553 - - - 1,625,553
Other - 4,015,502 - - - 4,015,502
Licenses and permits 510,976 - - - 8,617,682 9,128,658
Intergovernmental:

Federal grants and subsidies 364,918 1,942,469 72,680,699 9,823,884 247 84,812,217 Sales and use tax - levied by state 76,238,894 - - - - 76,238,894 Other governmental 41,533,967 1,994,047 16,996,148 3,560,658 21,576,997 85,661,817 Charges for services 10,016,145 2,625 - - 29,513,639 39,532,409 Fines and forfeitures 1,876,711 - - - 124,671 2,001,382 Use of money and property 1,249,320 8,301,161 - - 404,467 9,954,948 Interest income (loss) (6,752,234) (24,696) (575,956) (45,931) (6,274,017) (13,672,834) Refunds and reimbursements 219,469 - - - 330,564 550,033 Miscellaneous 5,642,210 - 19,653 58,410 2,537,993 8,258,266 Total revenues 5,163,765 303,969,694 89,120,544 13,397,021 98,258,491 509,909,515 EXPENDITURES:

Current:

General government 2,504,918 19,999,475 41,098,830 413 13,226,847 76,830,483 Public safety - 184,498,997 4,958,550 - 16,649,380 206,106,927 Public works 17,336,248 - 76,737 230 16,850,013 34,263,228 Library - 11,515,728 575,571 - 2,567,149 14,658,448
Parks and recreation 10,292,742 - 30,732 - 4,228,315 14,551,789 Capital outlay 468,869 - 6,675,212 40,746,924 5,142,455 53,033,460 Debt service:

Principal retirement 29,088 1,750,000 - - 164,013 1,943,101 Interest and fiscal charges 16,003 135,771 - - 7,245,358 7,397,132 Total expenditures 4,390,689 244,157,150 53,415,632 40,747,567 66,073,530 408,784,568

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 773,076 59,812,544 35,704,912 (27,350,546) 32,184,961 101,124,947 OTHER FINANCING SOURCES (USES):

Transfers in - - - 20,003,898 7,613,898 27,617,796
Transfers out (398,809) (12,235,569) (1,500,000) (598,214) (12,747,667) (27,480,259) Proceeds from issuance of debt 162,530 - - - - 162,530
Proceeds from sale of capital assets 16,769 - - - - 16,769 Total other financing sources (uses) (398,809) (12,056,270) (1,500,000) 19,405,684 (5,133,769) 316,836 CHANGES IN FUND BALANCES 374,267 47,756,274 34,204,912 (7,944,862) 27,051,192 101,441,783 FUND BALANCES:

Beginning of year 86,006,591 130,857,119 2,597,910 27,539,054 258,626,411 505,627,085 End of year $ 86,380,858 178,613,393 $ 36,802,822 $ 19,594,192 $ 285,677,603 $ 607,068,868 $ 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, 2022
See accompanying Notes to the Basic Financial Statements. 24 ATTACHMENT A 1626
Net change in fund balances - Total Governmental Funds: $ 101,441,783 Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlays (net of $8,388,557 in Internal Service Fund and net $9,248,365 expensed) 43,785,095 Net transfer of capital assets to the internal service fund (6,015,680) Capital asset disposals, net (149,184)
(19,305,268)
Repayment of principal, net of $256,440 in Internal Service Fund 1,943,101 Issuance of debt (162,530)
3,571,937
Change in compensated absences (net of $167,816 in Internal Service Fund) 993,873 (454,502)
Change in unavailable revenue - other 10,277,764
Changes in deferred outflows, deferred inflows, and net pension liability 52,632,207 Changes in net position of governmental activities $ 188,558,596 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, 2022
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:

Depreciation and amortization expenses (net of depreciation and amortization $4,803,694 reported in Internal Service Funds)
See accompanying Notes to the Basic Financial Statements. 25 ATTACHMENT A 1627
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26 ATTACHMENT A 1628
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 golf course.

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 and Retiree Health Insurance, Retirement Benefits, Other Benefits and Insurance, Vehicle Fleet Equipment, Computer Equipment, 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. 27 ATTACHMENT A 1629
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
ASSETS
Current assets:

Cash and investments $ 98,869,245 $ 127,584,051 $ 9,373,274 $ 2,911,294 Receivables, net:

Interest 236,060 308,211 21,991 9,189
Accounts and other receivables 13,961,175 11,028,300 674,665 - Lease - due in one year - - - -
Loans to other funds - current - - - -
Due from other governments, net 569,530 - - -
Inventory of supplies 2,046,281 - - -
Deposits and advances - - - 89,521
Prepaids items 1,205,434 374,595 61,708 -
Total current assets 114,841,444 141,341,438 10,131,638 3,010,004 Noncurrent assets:

Restricted assets:

Cash and investments - - - -
Cash and investments with fiscal agents 25 1,771,253 4,694,171 - Lease - due in more than one year
Loans to other funds - long-term - - - -
Loans receivable - - - 190,000
Capital assets, net:

Nondepreciable 11,839,331 190,744,330 1,527,164 4,094,963 Depreciable and amortizable, net 282,857,550 244,791,145 40,080,096 21,578,304 Total noncurrent assets 294,696,906 437,306,728 41,607,260 30,557,438 Total assets 409,538,350 578,648,166 51,738,898 33,567,442

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt 11,994,982 1,223,060 - 427,240 Pension-related deferred outflows 812,514 2,031,296 145,454 - Total deferred outflows of resources 12,807,496 3,254,356 145,454 427,240 City of Stockton
Statement of Net Position
Proprietary Funds
June 30, 2022
Major Enterprise Funds Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 28 ATTACHMENT A 1630
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
ASSETS
Current assets:

Cash and investments $ 321,204 $ 156,166 $ 239,215,234 $ 141,709,895 Receivables, net:

Interest 241 18 575,710 560,417
Accounts and other receivables 12,250 7,763 25,684,153 340,460 Lease - due in one year - 26,337 26,337 -
Loans to other funds - current - - 1,592,922 -
Due from other governments, net - - 569,530 -
Inventory of supplies - 2,046,281 - 179,726
Deposits and advances - - 89,521 557,996
Prepaids items 788 761 1,643,286 2,931,782
Total current assets 334,483 191,045 269,850,052 147,873,198 Noncurrent assets:

Restricted assets:

Cash and investments - - 69,968,331 -
Cash and investments with fiscal agents - 6,465,449 - - Lease - due in more than one year 33,074 33,074 -
Loans to other funds - long-term - - 7,733,072 -
Loans receivable - - 190,000 -
Capital assets, net:

Nondepreciable - 359,805 208,565,593 22,097,132
Depreciable and amortizable, net 20,781,823 504,156 610,593,074 21,623,192 Total noncurrent assets 20,781,823 897,035 825,847,190 121,421,727 Total assets 21,116,306 1,088,080 1,095,697,242 269,294,925

DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding of debt - 13,645,282 - -
Pension-related deferred outflows - 2,989,264 - -
Total deferred outflows of resources - 16,634,546 - -
Proprietary Funds
Statement of Net Position (Continued)
City of Stockton
June 30, 2022
Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 29 ATTACHMENT A 1631
Water Wastewater Stormwater Parking
Utility Utility Utility Authority

LIABILITIES
Current liabilities:

Accounts payable 1,505,438 17,148,470 451,571 23,834
Accrued payroll 372,241 830,295 92,861 22,815
Loans from other funds - current - - - 643,105
Due to other governments 95,237 - - -
Deposits and other liabilities 1,857,613 1,250,176 104,000 - Retention payable 8,202 840,687 2,312 -
Unearned revenue - - - -
Accrued interest 2,060,895 1,161,251 - 448,253
Compensated absences - current 410,375 498,985 4,057 3,792 Lease payable - due in one year - 4,382 - 169,052
Self-insurance claims and judgments - current - - - -
Bonds payable - current 6,205,000 4,410,000 - 360,000
Total current liabilities 12,515,001 26,144,246 654,801 1,670,851 Noncurrent liabilities:

Compensated absences - long-term 252,192 267,861 - 2,644 Lease payable - due in more than one year - 732 2,473,581 - Self-insurance claims and judgments - long-term - - - - Loans from other funds - long-term - - 6,368,227 -
Certificates of participation 152,578,863 - - -
Bonds payable 189,756,335 - 28,922,846 -
Net pension liability 2,282,776 5,698,153 410,445 -
Total noncurrent liabilities 192,291,303 158,545,609 410,445 37,767,298 Total liabilities 204,806,304 184,689,855 1,065,246 39,438,149

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows 1,906,687 3,961,003 504,876 - Leases - - - -
Total deferred inflows of resources 1,906,687 3,961,003 504,876 -

NET POSITION
Net investment in capital assets 110,722,326 278,924,603 41,604,948 (3,351,391) Restricted for capital projects 25 8,094,826 3,003,179 - Restricted for debt service 12,604,988 - 1,690,993 -
Restricted for pensions - - - -
Unrestricted (deficit) 104,910,504 93,627,247 8,709,282 (6,786,248) Total net position $ 393,251,664 215,632,855 $ 50,314,230 $ (5,443,467) $ Major Enterprise Funds Nonmajor Enterprise Funds
June 30, 2022
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 30 ATTACHMENT A 1632
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service

LIABILITIES
Current liabilities:

Accounts payable 53,421 49,673 19,232,407 3,215,242
Accrued payroll - 1,602 1,319,814 489,104
Loans from other funds - current - - 643,105 454,217
Due to other governments - - 95,237 -
Deposits and other liabilities 36,889 3,248,678 - 49,104 Retention payable - - 851,201 -
Unearned revenue - - - -
Accrued interest - 3,670,399 - 15,066
Compensated absences - current - - 917,209 263,366
Lease payable - due in one year - - 173,434 50,116
Self-insurance claims and judgments - current - - 12,978,791 - Bonds payable - current - 10,975,000 - -
Total current liabilities 90,310 51,275 41,126,484 17,515,006 Noncurrent liabilities:

Compensated absences - long-term - - 522,697 175,623
Lease payable - due in more than one year - 2,474,313 - 152,044 Self-insurance claims and judgments - long-term - - 52,421,442 - Loans from other funds - long-term - 6,368,227 - 1,364,845 Certificates of participation - 152,578,863 - -
Bonds payable 10,870,821 229,550,002 - -
Net pension liability - - 8,391,374 -
Total noncurrent liabilities 10,870,821 399,885,476 - 54,113,954 Total liabilities 10,961,131 51,275 441,011,960 71,628,960

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows - 6,372,566 - -
Leases 59,083 59,083 -
Total deferred inflows of resources - 59,083 6,431,649 -

NET POSITION
Net investment in capital assets 9,911,002 863,961 438,675,449 43,720,324 Restricted for capital projects - 11,098,030 - -
Restricted for debt service - 14,295,981 - -
Restricted for pensions - - 69,968,331 -
Unrestricted (deficit) 244,173 113,761 200,818,719 83,977,310 Total net position $ 977,722 10,155,175 $ 664,888,179 $ 197,665,965 $ Nonmajor Enterprise Funds
City of Stockton
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 31 ATTACHMENT A 1633
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
OPERATING REVENUES:

Charges for services $ 58,600,917 $ 76,884,317 $ 5,986,893 $ 4,306,876 Miscellaneous 7,411,908 1,624,610 149,909 -
Total operating revenues 66,012,825 78,508,927 6,136,802 4,306,876 OPERATING EXPENSES:

Operation and maintenance 17,850,913 42,294,459 3,022,984 2,883,994 General and administrative 4,260,846 8,899,307 2,580,848 586,120 Depreciation and amortization 7,861,294 12,632,253 1,684,553 1,053,748 Purchased water 16,286,908 - - -
Total operating expenses 46,259,961 63,826,019 7,288,385 4,523,862 OPERATING INCOME (LOSS) 19,752,864 14,682,908 (1,151,583) (216,986) NONOPERATING REVENUES (EXPENSES):

Taxes - - 1,383,392 -
Grants and subsidies 47,298 2,253,527 - 198,735
Investment income:

Interest income (loss) (2,741,887) (3,878,456) (280,686) (110,815) Interest expense and fiscal charges (8,271,731) (3,164,634) (1,163,235) - Other nonoperating revenues - - - -
Total nonoperating revenues (expenses) (10,966,320) (4,789,563) (280,686) 308,077

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 8,786,544 9,893,345 (1,432,269) 91,091 CONTRIBUTIONS AND TRANSFERS:

Capital contributions 7,399,219 3,943,458 - -
Developer contributions 294,172 211,618 383,023 -
Transfers in - - - -
Transfers out (19,650) (622,808) (293,333) -
Total contributions and transfers 7,673,741 3,532,268 89,690 - CHANGES IN NET POSITION 16,460,285 13,425,613 (1,342,579) 91,091 NET POSITION:

Beginning of year, as restated (Note 19) 199,172,570 379,826,051 51,656,809 (5,534,558) End of year $ 393,251,664 215,632,855 $ 50,314,230 $ (5,443,467) $ 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, 2022
See accompanying Notes to the Basic Financial Statements. 32 ATTACHMENT A 1634
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
OPERATING REVENUES:

Charges for services $ 358,015 $ 146,137,018 - $ $ 151,999,101 Miscellaneous 37,321 32,394 9,256,142 15
Total operating revenues 395,336 32,394 155,393,160 151,999,116 OPERATING EXPENSES:

Operation and maintenance 566,771 66,619,121 - 131,845,744 General and administrative 5,756 170,766 16,503,643 7,736,578 Depreciation and amortization 532,956 99,241 23,864,045 4,803,694 Purchased water - 16,286,908 - -
Total operating expenses 1,105,483 270,007 123,273,717 144,386,016 OPERATING INCOME (LOSS) (710,147) (237,613) 32,119,443 7,613,100 NONOPERATING REVENUES (EXPENSES):

Taxes - 1,383,392 - -
Grants and subsidies - 2,499,560 - -
Investment income:

Interest income (loss) (3,569) (2,774) (7,018,187) (11,878,728) Interest expense and fiscal charges - (12,599,600) - (42,382) Other nonoperating revenues - - 1,563,713 -
Total nonoperating revenues (expenses) (3,569) (2,774) (15,734,835) (10,357,397)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (713,716) (240,387) 16,384,608 (2,744,297) CONTRIBUTIONS AND TRANSFERS:

Capital contributions - 11,342,677 - 6,015,680
Developer contributions - - 888,813 -
Transfers in 262,000 235,700 497,700 300,554
Transfers out - - (935,791) -
Total contributions and transfers 262,000 235,700 11,793,399 6,316,234 CHANGES IN NET POSITION (451,716) (4,687) 28,178,007 3,571,937 NET POSITION:

Beginning of year, as restated (Note 19) 10,606,891 982,409 636,710,172 194,094,028 End of year $ 977,722 10,155,175 $ 664,888,179 $ 197,665,965 $ Nonmajor Enterprise Funds
City of Stockton
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 33 ATTACHMENT A 1635
Water Wastewater Stormwater Parking
Utility Utility Utility Authority
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users $ 56,784,060 $ 80,815,091 $ 6,270,219 $ 4,306,974 Receipts for interfund services provided - - - -
Payments to suppliers and employees (40,273,637) (51,587,006) (5,575,227) (3,481,634) Miscellaneous receipts 7,411,908 1,624,610 149,909 -
Net cash provided by (used in) operating activities 23,922,331 30,852,695 844,901 825,340 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net (19,650) (622,808) (293,333) -
Loans to and from other funds - - (629,841) -
Receipt of cash subsidies and federal grants 47,298 2,253,527 - - Other nonoperating revenues - - - -
Proceeds from taxes - - 1,582,127 -
Net cash provided by (used in) noncapital financing activities 27,648 1,630,719 (293,333) 952,286

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 55,383 58,237 1,548 - Purchases of capital assets (4,255,530) (67,911,245) (1,238,480) (204,691) Capital contributions received 7,693,391 4,155,076 383,023 - Proceeds from issuance of debt 108,008,758 - - -
Principal paid on debt (6,720,073) (123,438,626) (607,446) - Unamortized loss on refunding of debt and discount 721,388 170,584 - - Interest paid on debt (8,341,584) (2,940,811) (1,169,284) - Net cash (used in) capital and related financing activities (10,847,025) (81,898,027) (853,909) (1,981,421) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) (2,786,345) (3,831,987) (278,801) (112,477) Net cash provided by (used in) investing activities (2,786,345) (3,831,987) (278,801) (112,477) 10,316,609 (53,246,600) (581,142) (316,272)
CASH AND CASH EQUIVALENTS:

Beginning of year 88,552,661 182,601,904 9,954,416 7,921,737 End of year $ 129,355,304 98,869,270 $ 9,373,274 $ 7,605,465 $ City of Stockton
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Major Enterprise Funds Nonmajor Enterprise Funds

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS
See accompanying Notes to the Basic Financial Statements. 34 ATTACHMENT A 1636
Governmental
Downtown Golf Activities
Marina Courses Totals Internal Service
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and users $ 447,848 $ 148,616,101 (8,091) $ $ - Receipts for interfund services provided - - 152,502,465 - Payments to suppliers and employees (636,476) (290,289) (101,844,269) (140,856,919) Miscellaneous receipts 37,321 32,394 9,256,142 (915,393) Net cash provided by (used in) operating activities (151,307) (265,986) 56,027,974 10,730,153 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in (out), net 262,000 235,700 (438,091) 234,575 Due to and from other funds (629,841) - 610,601
Receipt of cash subsidies and federal grants 2,300,837 12 - Other nonoperating revenues - 1,718,154 -
Proceeds from taxes 1,582,127 - -
Net cash provided by (used in) noncapital financing activities 262,000 235,712 2,815,032 2,563,330

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets - 115,168 - -
Purchases of capital assets (78,819) (73,688,765) - (8,388,559) Capital contributions received - 12,231,490 - -
Proceeds from issuance of debt - 108,008,758 - -
Principal paid on debt - (130,766,145) - (256,440)
Unamortized loss on refunding of debt - 891,972 - -
Interest paid on debt - (12,451,679) - (51,674)
Net cash (used in) capital and related financing activities (78,819) (95,659,201) - (8,696,673) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (loss) (3,498) (1,922) (7,015,030) (12,007,502) Net cash provided by (used in) investing activities (3,498) (1,922) (7,015,030) (12,007,502) 28,376 (32,196) (43,831,225) (7,410,692)
CASH AND CASH EQUIVALENTS:

Beginning of year 292,828 188,362 289,511,908 219,088,917 End of year $ 321,204 $ 156,166 $ 245,680,683 $ 211,678,225 City of Stockton
Nonmajor Enterprise Funds

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 35 ATTACHMENT A 1637
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 $ 98,869,245 $ 127,584,051 $ 9,373,274 $ 2,911,294 Restricted assets:

Cash and investments - - - -
Cash and investments with fiscal agents 1,771,253 25 4,694,171 - Total cash and investments $ 129,355,304 98,869,270 9,373,274 $ 7,605,465 $

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

Operating income (loss) 19,752,864 $ 14,682,908 $ (1,151,583) $ (216,986) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 7,861,294 12,632,253 1,684,553 1,053,748 Changes in assets and liabilities:

Accounts receivables (1,816,857) 3,930,774 283,326 98
Due from other funds - - - -
Prepaid items (105,017) (131,268) (8,873) -
Lease receivable - - - -
Lease related deferred inflows - - - -
Inventory of supplies - (182,931) - -
Deposits and advances - - - (4,586)
Accounts payable (944,155) 937,381 170,892 8,319
Accrued payroll 5,330 10,689 (6,700) (1,512)
Due to other funds - - - -
Deposits and other liabilities (119,745) 1,157,125 (5,999) - Compensated absences (36,166) (90,973) (12,395) (13,741) Self-insurance - claims and judgments - - - -
Net pension liability (2,126,781) (4,662,564) (593,386) - Pension-related deferred outflows (105,968) (370,547) 15,248 - Pension-related deferred inflows 1,557,532 2,939,848 469,818 - Net cash provided by (used in) operating activities $ 30,852,695 23,922,331 $ 844,901 $ 825,340 $ NONCASH TRANSACTIONS:

Amortization of loss on refunding 721,388 $ 170,584 $ - $ (427,240) $ Capital contributions received 294,172 211,618 383,023 - Total noncash capital and related financing activities $ 382,202 1,015,560 $ 383,023 $ (427,240) $ Major Enterprise Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
City of Stockton
See accompanying Notes to the Basic Financial Statements. 36 ATTACHMENT A 1638
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 $ 321,204 $ 156,166 $ 239,215,234 $ 141,709,895 Restricted assets:

Cash and investments - - 69,968,331 -
Cash and investments with fiscal agents - 6,465,449 - - Total cash and investments $ 321,204 $ 156,166 $ 245,680,683 $ 211,678,226

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

Operating income (loss) $ (710,147) $ (237,613) $ 32,119,443 $ 7,613,100 Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization 532,956 99,241 23,864,045 4,803,694 Changes in assets and liabilities:

Accounts receivables 89,833 (7,763) 2,479,411 199,709
Due from other funds - 303,640 -
Prepaid items 23,450 (221,708) - (893,829)
Lease receivable 26,279 - 26,279 -
Lease related deferred inflows (26,607) - (26,607) -
Inventory of supplies - (182,931) - (179,726)
Deposits and advances - - (4,586) 349,235
Accounts payable (55,983) (119,529) (3,075) (417,891)
Accrued payroll - 6 7,813 35,429
Due to other funds - -
Deposits and other liabilities (31,416) 999,965 - -
Compensated absences - (153,275) - (167,815)
Self-insurance - claims and judgments - - (915,393) -
Net pension liability - (7,382,731) - -
Pension-related deferred outflows - (461,267) - -
Pension-related deferred inflows - 4,967,198 - -
Net cash provided by (used in) operating activities $ (265,986) (151,307) $ 56,027,974 $ 10,730,153 $ NONCASH TRANSACTIONS:

Amortization of loss on refunding - $ - $ 464,732 $ - $ Capital contributions received - - 888,813 6,015,680
Total noncash capital and related financing activities $ - - $ 1,353,545 $ 6,015,680 $ For the Year Ended June 30, 2022
City of Stockton
Nonmajor Enterprise Funds
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 37 ATTACHMENT A 1639
This page intentionally left blank.
38 ATTACHMENT A 1640
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 government-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 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. 39 ATTACHMENT A 1641
Successor
Agency to the
Redevelopment
Agency
Custodial Private-Purpose
Funds Trust Fund
ASSETS
Cash and investments $ 10,088,400 25,215,598 $
Cash and investments with fiscal agents 6,472,600 3
Receivables, net:

Interest 23,027 62,272
Accounts and other receivables 3, 561 662,249
Lease 41,321 -
Capital assets:

Nondepreciable 12,231,979 -
Depreciable and amortizable, net 11,965,731 -
Total assets 34,351,022 35,412,719

LIABILITIES
Accounts payable - 24,294
Accrued payroll 3,909 -
Due to other governments - 2,950,173
Loans from the City 1,106,580 -
Accrued interest 1,219,012 -
Bonds payable - current 4,370,555 -
Bonds payable - noncurrent 86,898,487 -
Pollution remediation 275,000 -
Total liabilities 93,873,543 2,974,467
Deferred Inflows of Resources
Lease 41,114 -
Total deferred inflows of resources 41,114 -

NET POSITIONS
Held in Trust (59,563,635) -
Restricted for individual, organization, and other governments 32,438,252 - Total net positions $ (59,563,635) 32,438,252 $
City of Stockton
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 40 ATTACHMENT A 1642
Successor
Agency to the
Redevelopment
Agency
Custodial Private-Purpose
Funds Trust Fund
ADDITIONS:

Property tax $ 7,844,621 $ 10,086,063
Use of money and property 87 6,957
Investment income (loss) (824,783) (304,033)
Gain on disposal of capital assets - 378,011
Miscellaneous - 1,449,265
Total additions 7,019,925 11,616,263
DEDUCTIONS:

General government 373,760 249,930
Public Works 7,526,952 -
Debt obligations 7,362,720 3,139,799
Depreciation and amortization - 573,834
Miscellaneous - 6,346,648
Total deductions 15,263,432 10,310,211
CHANGE IN NET POSITION (8,243,507) 1,306,052
NET POSITION (DEFICIT):

Beginning of year, as restated (Note 19) 40,681,759 (60,869,687) End of year $ (59,563,635) 32,438,252 $
City of Stockton
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements. 41 ATTACHMENT A 1643
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42 ATTACHMENT A 1644

NOTES TO BASIC FINANCIAL STATEMENTS
ATTACHMENT A 1645
ATTACHMENT A 1646
City of Stockton
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
43 Note 1 – Summary of Significant Accounting Policies ...................................................................................... 45 A. Financial Reporting Entity ................................................................................................................... 45 B. Basis of Presentation, Measurement Focus and Basis of Accounting ................................................. 46 C. Deferred Outflows/Inflows of Resources ............................................................................................ 50 D. Encumbrances ...................................................................................................................................... 50 E. Cash, Cash Equivalents, and Investments ............................................................................................ 50 F. Restricted Cash and Investments ......................................................................................................... 51 G. Fair Value Measurement ...................................................................................................................... 51 H. Receivables .......................................................................................................................................... 51 I. Interfund Loans and Advances ............................................................................................................ 52 J. Inventory of Supplies ........................................................................................................................... 52 K. Prepaid Items ....................................................................................................................................... 52 L. Lease Receivable ................................................................................................................................. 52 M. Capital Assets ...................................................................................................................................... 53 N. Capital Contributions ........................................................................................................................... 54 O. Accrued Payroll and Related Liabilities .............................................................................................. 54 P. Accrued Compensated Absences ......................................................................................................... 54 Q. Long-Term Debt .................................................................................................................................. 55 R. Lease Liabilities ................................................................................................................................... 55 S. Pensions ............................................................................................................................................... 55 T. Net Position ......................................................................................................................................... 56 U. Fund Balances ...................................................................................................................................... 57 V. Property Taxes ..................................................................................................................................... 57 W. Use of Estimates .................................................................................................................................. 58 X. Implementation of Governmental Accounting Standards Board Pronouncements ............................. 58 Note 2 – Cash, Cash Equivalents and Investments ............................................................................................ 60 A. Cash Deposits ...................................................................................................................................... 60 B. Authorized Investments ....................................................................................................................... 61 C. Investments in Local Agency Investment Fund ................................................................................... 63 D. Investments in California Asset Management Program (“CAMP”) .................................................... 63 E. Fair Value of Investments .................................................................................................................... 63 F. Risk Disclosures .................................................................................................................................. 64 G. Restricted Cash and Investments ......................................................................................................... 67 Note 3 – Interfund Transactions .......................................................................................................................... 68 A. Loans To/From Other Funds ................................................................................................................ 68 B. Transfers .............................................................................................................................................. 69 Note 4 – Lease Receivable ..................................................................................................................................... 70 Note 5 – Successor Agency – Loans from City, Net ............................................................................................ 71 Note 6 – Loans to Property Owners ..................................................................................................................... 72 ATTACHMENT A 1647
City of Stockton
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
44 Note 7 – Capital Assets .......................................................................................................................................... 73 A. Government-Wide Financial Statements ............................................................................................. 73 B. Governmental Activities ...................................................................................................................... 74 C. Business-Type Activities ..................................................................................................................... 75 D. Fiduciary Fund Activities .................................................................................................................... 76 Note 8 – Long-Term Liabilities ............................................................................................................................ 77 A. Governmental Activities ...................................................................................................................... 77 B. Business-Type Activities ..................................................................................................................... 81 C. Fiduciary Fund Activities .................................................................................................................... 87 D. Debt Without City Commitment .......................................................................................................... 88 E. Conduit Debt ........................................................................................................................................ 89 Note 9 – Accrued Compensated Absences ........................................................................................................... 89 Note 10 – Unamortized Loss on Refunding ......................................................................................................... 90 Note 11 – Fund Balances ....................................................................................................................................... 90 Note 12 – Retirement Plans .................................................................................................................................. 91 A. CalPERS Retirement Plan ................................................................................................................... 92 B. PARS Enhancement Plan ..................................................................................................................... 98 C. Retirement Benefits Fund (Section 115 Trust) .................................................................................. 102 Note 13 – Claims Payable ................................................................................................................................... 102 Note 14 – Pollution Remediation Obligations ................................................................................................... 104 Note 15 – Individual Fund Disclosures .............................................................................................................. 104 Note 16 – Commitments and Contingencies ..................................................................................................... 105 Note 17 – Restricted Net Position ....................................................................................................................... 107 Note 18 – Subsequent Events .............................................................................................................................. 107 Note 19 – Prior Period Adjustments .................................................................................................................. 107 ATTACHMENT A 1648
City of Stockton
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
45 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Stockton, California (the “City”) have been prepared in accordance with Accounting Principles Generally Accepted in 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 majority 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 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 City’s fiduciary funds as a private-purpose trust fund for the fiscal year ended June 30, 2022.

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.

ATTACHMENT A 1649
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
46 Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued)
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 ongoing 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 revenues from providing emergency communications services are tracked and reported in the General Fund. The SJCRFDA was dissolved effective June 30, 2021.

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, deferred outflows of resources, liabilities, deferred inflows of resources, 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 Changes 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.

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.

ATTACHMENT A 1650
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
47 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued) Government-Wide Financial Statements (Continued)
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, including Capital and Infrastructure assets and long term liabilities are included in the accompanying Statement of Net Position. The Statement of Activities presents the Change 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 and reported as transfers The following inter-fund activities have been eliminated:
 Loans to, Loans from other funds
 Transfers in, Transfers out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the government-wide financial statements.

All governmental funds 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 Changes 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 90 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, and other taxes.

ATTACHMENT A 1651
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued) Governmental Fund Financial Statements (Continued)
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 expenditures 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).
 Special Grants Special 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 otherwise 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.

ATTACHMENT A 1652
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued) Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes 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 Changes 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.

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, Employee Health Insurance, Retirement Benefits, Other Benefits and Insurance, Vehicle Fleet Equipment, 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.

ATTACHMENT A 1653
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued) Fiduciary Fund Financial Statements (Continued)
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.

C. Deferred Outflows/Inflows of Resources
The Statement of Net position and the Balance Sheet report separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent a consumption of net position that apply to future periods.

Deferred Inflows of Resources represent an acquisition of net position that apply to future periods.

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 (the “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.

The change in fair value of investments is recognized as an increase or decrease in investment assets and investment income or loss. Investment income (loss) 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 at fair value, and the unrealized losses on investments amounted to $16,893,214 for the fiscal year ended June 30, 2022.

ATTACHMENT A 1654
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 1 – Summary of Significant Accounting Policies (Continued) E. Cash, Cash Equivalents, and Investments (Continued)
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
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 acting 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 was established under the issuance of bonds in 2009 and 2014, respectively.

G. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

H. 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 modified accrual basis of accounting in the governmental funds is limited to the amount that is deemed measurable and available.

ATTACHMENT A 1655
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52 Note 1 – Summary of Significant Accounting Policies (Continued) H. Receivables (Continued)
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 restricted fund balance as the use of the proceeds from the collection of those receivables was restricted. 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.

I. 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.

J. 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 General Fund as the City’s central store in general and for the entertainment venues as well as 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.

K. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method. A nonspendable fund balance has been reported in the governmental funds to show that the prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

L. Lease Receivable
The City is a lessor for leases of land, buildings, and cell towers and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

ATTACHMENT A 1656
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 1 – Summary of Significant Accounting Policies (Continued) L. Lease Receivable (Continued)
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $5,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.

The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

M. 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:

Infrastructure 30-100 years
Buildings and Improvements 20-50 years
Machinery and equipment 3-30 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.

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.

ATTACHMENT A 1657
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 1 – Summary of Significant Accounting Policies (Continued) M. Capital Assets (Continued)
The City established a threshold to recognize a right‐to‐use lease asset (lease asset) in the government‐wide financial statements and proprietary fund financial statements for a leased asset over $5,000. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

N. 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.

O. 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, 2022, the payroll accrual is recorded in the respective funds when the related liability is incurred.

P. 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. As of July 1, 2013, employees separating from service will receive their full vacation payout.

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.

ATTACHMENT A 1658
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 1 – Summary of Significant Accounting Policies (Continued) Q. 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.

Bond issuance premiums and discounts, as well as prepaid insurance, are amortized over the life of the bonds using the straight-line 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.

R. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $5,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

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

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses incremental borrowing rate provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
 Lease payments included in the measurement of the lease payable is composed of fixed payments to the lessor.

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

General Fund and special revenue are typically used to liquidate pension liabilities for governmental funds.

ATTACHMENT A 1659
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 1 – Summary of Significant Accounting Policies (Continued) S. Pensions (Continued)
The following time frames 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. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

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

Net Investment in Capital Assets – This component of net position of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets, and excludes unspent debt proceeds. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also should be included in this component of net position.

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.

CALPERS
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
PARS
Valuation Date June 30, 2020
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
ATTACHMENT A 1660
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 1 – Summary of Significant Accounting Policies (Continued) U. Fund Balances
In the governmental fund financial statements, fund balances are classified 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, such as principal of an endowment or revolving loan funds.

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 amounts 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.

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.

V. 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.

Property Valuations are established by the Assessor of the County of San Joaquin for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal prope1ty is excluded from these limitations, and is subject to annual reappraisal.

ATTACHMENT A 1661
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 1 – Summary of Significant Accounting Policies (Continued) V. Property Taxes (Continued)
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.

W. Use of Estimates
The preparation of basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from these estimates and assumptions.

X. Implementation of New GASB Pronouncements
During the year ended June 30, 2022, the City implemented the following new GASB Pronouncements.

In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset.

Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The effective date of GASB Statement No. 87 (as amended by GASB Statement No. 95) is for fiscal years beginning after June 15, 2021.

Implementation of this Statement resulted in restatement of beginning balance of lease assets (Note 7) and lease liabilities (Note 8) at July 1, 2021.

GASB Statement No. 89 – In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre–November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business–type activity or enterprise fund.

Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

ATTACHMENT A 1662
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 1 – Summary of Significant Accounting Policies (Continued) X. Implementation of New GASB Pronouncements (Continued) GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

GASB Statement No. 93 – In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates.

Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate.

The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

GASB Statement No. 97 – In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2022.

ATTACHMENT A 1663
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 2 – Cash, Cash Equivalents and Investments
The following is a summary of cash, cash equivalents, and investments, including restricted cash and investments at June 30, 2022:

A. Cash Deposits
The carrying amount of the City’s pooled cash deposits was $196,876,122 at June 30, 2022. Bank balances before reconciling items were $204,997,056 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 721,079 $
Demand Deposits 196,876,122
Total Deposits 197,597,201
Investments 789,869,636
Total Cash and Investments $ 987,466,837
Presented in the government-wide statement of net position:

Cash and Investments 867,679,777 $
Restricted Cash and Investments 78,010,459
Presented in the statement of fiduciary net position:

Cash and Investments 35,303,998
Cash and investments with fiscal agents 6,472,603
Total Cash and Investments $ 987,466,837
ATTACHMENT A 1664
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 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 (“CGC”) or the City’s investment policy, where more restrictive. The table also identifies certain provisions of the California Government Code or the City’s investment policy, 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 Credit
Authorized Investment Type Maturity Portfolio 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
$75,000,000
per account N/A
California Asset Management Program Upon Demand No Limit*** N/A**** Repurchase 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 Government Code Section 53601 et seq. N/A 20% AAA
* Limited to 5 years, except permits 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.
** Securities with term to maturity greater than 5 years shall not exceed 15% of the total portfolio value. *** Investments by any single agency may make up no more than 10% of pool holdings ****Pool composition restricted by CGC 53601.

ATTACHMENT A 1665
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 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.

Authorized Investment Type
Maximum
Maturity
Minimum Credit
Quality
Maximum
in Portfolio
Maximum
Investment
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 $75,000,000 $75,000,000
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 CGC 53601 as to % that the pool must abide by ATTACHMENT A 1666
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63 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, 2022, the City had $74,034,406 invested in LAIF, which had invested 1.88 % 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 (“CAMP”) 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, 2022, the City had $82,050 invested in CAMP, which had invested 18.34% 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
At June 30, 2022, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2022. Deposits and withdrawals related to the investments in LAIF, CAMP, and money market funds are valued on amortized cost, which approximates fair value. Accordingly, under the fair value hierarchy these investments are uncategorized.

ATTACHMENT A 1667
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64 Note 2 – Cash, Cash Equivalents and Investments (Continued) E. Fair Value of Investments (Continued)
(1) Pricing based on Institutional Bond Quotes - evaluations based on various market and industry inputs. (2) Pricing based on Intercontinental Exchange Extel Financial Ltd - evaluations based on various market factors. (3) Cash and cash equivalent valued at an amortized cost which approximates fair value.

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.

Investments subject to fair value measurement categorizations: June 30, 2022 Level 1 Level 2 Uncategorized(3) U. S. Agencies (1) $ - 144,341,056 $ 144,341,056 $ - $
U. S. Treasuries 249,515,008 249,515,008 - -
Medium term notes(1) - 101,286,818 101,286,818 -
Supranationals(2) - 11,523,992 11,523,992 -
Municipal Bonds(1) - 16,032,962 16,032,962
Federal Agency CMOs (1) 4,012,331 4,012,331 - -
Negotiable CD(1) - 70,426,270 70,426,270 -
Cmmercial Paper(1) 36,467,953 36,467,953 -
Asset backed securities(1) - 13,682,005 13,682,005 -
Cash - PARS 115 Trust 22,258 - - 22,258
Equity Mutual Fund- PARS 115 Trust 19,062,529 - 19,062,529 - Fixed Income Mutual Fund- PARS 115 Trust(1) - 44,130,563 44,130,563 - Idle Funds in Reserve Portfolio 1,626,761 - - 1,626,761 Local Agency Investment Fund 74,034,406 - - 74,034,406
California Asset Management Program (CAMP) 82,050 - - 82,050 Money Market Funds (attributable to 115 Trust) 3,622,674 - - 3,622,674 Total $ 249,515,008 789,869,636 $ 460,966,479 $ 79,388,149 $ Measurement Input
ATTACHMENT A 1668
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65 Note 2 – Cash, Cash Equivalents and Investments (Continued) F. Risk Disclosures (Continued)
Interest Rate Risk (Continued)
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.

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.

Investment Maturities
Investment Type Fair Value 1 year or less 1-3 years 3-5 years 5 years
or more
U.S. Agencies 144,341,056 $ $ 21,253,026 $ 85,866,445 $ 37,221,585 $ - U.S. Treasuries 249,515,008 115,331,522 - 126,483,199 7,700,287 Medium Term (Corporate) Notes 101,286,818 3,512,831 87,052,556 10,721,431 - Supranationals 11,523,992 11,523,992 - - -
Municipal Bonds 16,032,962 9,722,639 - 6,310,323 -
Federal Agency CMOs 4,012,331 2,005,383 2,006,948 - -
Local Agency Investment Fund 74,034,406 74,034,406 - - - Capital Asset Management Program 82,050 82,050 - - -
Money Market Funds (attributable to 115 Trust) 3,622,674 3,622,674 - - - Negotiable CD 70,426,270 70,426,270 - - -
Asset Backed Securities 13,682,005 215,915 5,515,254 7,950,836 - Commercial paper 36,467,953 36,467,953 - - -
Cash - PARS 115 Trust 22,258 22,258 - - -
Equity Mutual Fund- PARS 115 Trust 19,062,529 19,062,529 - - - Fixed Income Mutual Fund- PARS 115 Trust 44,130,563 44,130,563 - - - Idle Funds in Reserve Portfolio 1,626,761 1,626,761 - - - Total 789,869,636 $ $ 276,462,619 $ 317,019,356 $ 188,687,374 $ 7,700,287 Allocation by percentage 100% 35% 40% 24% 1%
ATTACHMENT A 1669
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66 Note 2 – Cash, Cash Equivalents and Investments (Continued) F. Risk Disclosures (Continued)
Credit Risk (Continued)
Presented below is the actual rating as of June 30, 2022, for each investment type as provided by Standard and Poor’s (“S&P”) investment rating system:

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. On March 8, 2022, 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 June 24, 2022, and Fitch affirmed the AAA rating and brought the outlook to stable on July 8, 2022.

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.

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 - $ 148,353,387 $ - $ - $ - $ 148,353,387 $ Medium term notes:

Non-callable - 8,016,097 33,773,695 - - 41,789,792
Callable 5,317,258 15,259,516 32,790,026 - 6,130,226 59,497,026 Asset Backed Securities 13,682,005 - - - - 13,682,005
Commercial Paper - - - 36,467,953 - 36,467,953
Negariable CDs - - - 70,426,270 - 70,426,270
Supranationals 11,523,992 - - - - 11,523,992
Municipal securities 2,785,914 13,247,048 - - - 16,032,962 Total 33,309,169 $ 184,876,048 $ 66,563,721 $ 106,894,223 $ 6,130,226 $ 397,773,387 Not rated or exempt from rating disclosure:

Local Agency Investment Fund 74,034,406
California Asset Management Program 82,050
U. S. Treasuries 249,515,008
Section 115 Trust Mutual Funds (not rated) 66,815,766
Cash Held in 115 Trust 22,258
Idle Funds in Reserve Portfolio 1,626,761
Total Investments $ 789,869,636
Investment Type
ATTACHMENT A 1670
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 Note 2 – Cash, Cash Equivalents and Investments (Continued) F. Risk Disclosures (Continued)
Concentration Credit Risk (Continued)
At June 30, 2022, 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:

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 primarily 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 Wastewater Rate Stabilization Accounts at June 30, 2022, was $1,771,253.

At June 30, 2022, the restricted cash and investments with fiscal agents are as follows:

Issuer Investment Type
Reported
Amount Total Holdings
Held by City and its Component Units: $ 789,869,636
Federal National Mortgage Association Federal Agency Securities $ 99,294,973 12.57% Governmental activities $ 71,545,010
Business-type activities:

Water Utility 25
Wastewater Utility 1,771,253
Parking Authority 4,694,171
Subtotal 6,465,449
Fiduciary Funds $ 6,472,603
Total restricted cash and investments 84,483,062 $
ATTACHMENT A 1671
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 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. The of $9,325,994 of interfund loan balances, broken down by short and long-term net of interest, as of June 30, 2022 is shown below.

The most significant inter-fund transactions were as follows:
 The $7,011,332 interfund loan balance from the Workers’ Compensation Insurance Internal Service Fund to the Parking Authority Enterprise Fund was used to pay-off the existing 2006 Lease Revenue Refunding Bonds Series A, saving the City 2% in annual interest.
 The $1,819,062 interfund loan balance from the Workers’ Compensation Insurance Fund to the Internal Services Vehicle Fleet Equipment Fund was used to pay off three of four remaining Fire Truck Leases, saving the City 2% in annual interest.
 The $495,600 interfund loan from the Technology Internal Service Fund to the General Fund -Emergency Communications was used for equipment, software, and facility improvements to expand the Fire Dispatch Center and is expected to be repaid in FY2022-23.

Fund Making Loan Fund Receiving Loan Short-Term Long-term Total Internal Service Funds -Workers' Compensation Parking Authority $ 643,105 $ 6,368,227 $ 7,011,332 Internal Service Funds -Workers' Compensation Internal Service Funds -Vehicle Fleet Equipment 454,217 1,364,845 1,819,062 Internal Service Funds -Computer and Radio Equipment General Fund - Emergency Communications 495,600 - 495,600 Total 9,325,994 $
ATTACHMENT A 1672
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 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, 2022:

Transfers In Transfers Out Net Transfers
Governmental Activities:

General Fund Program Support $ - (1,297,700) $ (1,297,700) $ General Fund Capital Improvement - (5,120,994) (5,120,994) General Fund Debt Service - (5,816,875) (5,816,875)
SSA Debt Service/ Settlement - (398,809) (398,809)
Special Grants Program Support - (1,500,000) (1,500,000) Non-Major Government Funds Program Support 800,000 (12,747,667) (11,947,667) Non-Major Government Funds Debt Service 6,813,898 - 6,813,898 Capital Improvement Program Support 20,003,898 (598,214) 19,405,684 Internal Service Funds Program Support 300,554 300,554
Total governmental activities 27,918,350 (27,480,259) 438,091 Business-type Activities:

Water Utility Program Support - (19,650) (19,650)
Wastewater Utility Program Support - (622,808) (622,808) Stormwater Utility Program Support - (293,333) (293,333) Marina Program Support - 262,000 262,000
Golf Courses Program Support - 235,700 235,700
Total business-type activities 497,700 (935,791) (438,091) Total Government-Wide Statements $ 28,416,050 $ (28,416,050) $ - ATTACHMENT A 1673
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 4 - Lease Receivable
Lease receivables consist of agreements with others for the right–to–use of the underlying assets for land and buildings owned by the City at various locations. The remaining terms of the agreements range from 26 to 600 months. The incremental borrowing rates used were between 0.2450% to 1.800% depending on the length of the lease term. For the year ended June 30, 2022, the City recognized $71,038, $26,587, and $7,790 in lease revenue and $22,908, $273, and $337 in interest revenue for the Governmental Activities, the Business-Type Activities, and the Successor Agency, respectively. The outstanding receivables are in the amounts of $1,473,569, $59,411, and $41,321 for the Governmental Activities, the Business-Type Activities, and the Successor Agency, respectively.

The future required payments for these leases, including interest, are as follows:

Year Ending
June 30, Principal Interest Total Principal Interest Total Principal Interest Total 2023 47,443 $ 24,436$ $ 71,879 26,337$ $ 26,532 195 $ $ 7,612 308$ $ 7,920 2024 40,230 23,822 64,052 26,446 26,532 86 7,674 246 7,920 2025 41,130 23,182 64,312 6,628 6,633 5 7,737 183 7,920 2026 44,165 22,492 66,657 - - 7,800 - 120 7,920
2027 47,343 21,751 69,094 - - 7,864 - 56 7,920
2028 - 2032 270,827 96,251 367,078 - - 2,634 - 2,638 4
2033 - 2037 335,426 71,823 407,249 - - - - - -
2038 - 2042 128,415 50,293 178,708 - - - - - -
2043 - 2047 71,249 43,617 114,866 - - - - - -
2048 - 2052 77,961 36,904 114,865 - - - - - -
2053 - 2057 85,305 29,560 114,865 - - - - - -
2058 - 2062 93,342 21,523 114,865 - - - - - -
2063 - 2067 102,134 12,729 114,863 - - - - - -
2068 - 2071 88,599 3,298 91,897 - - - - - -
$ 481,681 1,473,569 $ $ 59,411 1,955,250 $ $ 59,697 286 $ $ 41,321 917$ 42,238 $ Governmental Activities Business-Type Activities Fidicuary Funds ATTACHMENT A 1674
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 5 – 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, 2022, 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 the 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 the inception date of each loan. The total outstanding loan balance (including accrued interest) as of June 30, 2022 is $5,613,413 and has been offset by an allowance for uncollectible loan and interest in the amount of $4,506,833, 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 $1,250,321 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, 2022, outstanding accrued interest balance is $2,244,166.
 The $1,012,346 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 Receiving Loan
Outstanding
Balance
Allowance for
Uncollectible
Loans Net Balance
Low - Moderate Income Housing RDA Loans Private-Purpose Trust Fund - Successor Agency of the Redevelopment Agency $ 1,106,580 $ 1,106,580 - $
Non-Major Governmental - CDBG Fund Private-Purpose Trust Fund - Successor Agency of the Redevelopment Agency 1,250,321 (1,250,321) -
Capital Improvement Projects Fund Private-Purpose Trust Fund - Successor Agency of the Redevelopment Agency 1,012,346 (1,012,346) -
Interest on Redevelopment Agency Loans 2,244,166 (2,244,166) - Total 5,613,413 $ $ (4,506,833) $ 1,106,580
ATTACHMENT A 1675
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 6 – Loans to Property Owners
Loans provided to property owners are managed by the City’s Economic Development Department (EDD). Loans receivables under the City’s loan programs at June 30, 2022 are as follows:

First Time Home Buyers 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 qualified 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 (CDBG)
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
First Time Home Buyers Program (HOME) $ 41,874,071 $ 9,006,093 $ 50,880,164 Community Development Block Grant Programs 16,731,191 2,579,737 19,310,929 Neighborhood Stabilization First Time Home Buyer Program 10,934,138 1,499,722 12,433,860 California Home Loans 2,859,698 360,618 3,220,317
Low & Moderate Income Housing Programs (former Agency) 52,594,307 14,078,765 66,673,072 $ 124,993,405 $ 27,524,936 152,518,341
Less: Allowance for Doubtful Accounts (3,082,699)
Total $ 149,435,642
Governmental Activites
ATTACHMENT A 1676
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 7 – Capital Assets
A. Government-Wide Financial Statements
At June 30, 2022, the City’s capital assets consisted of the following:

Governmental Business -Type
Activities Activities 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 192,071,580 193,438,375 385,509,955 Total capital assets, not being depreciated 234,623,105 208,565,593 443,188,698 Capital assets, being depreciated:

Infrastructure 615,830,270 615,830,270 -
Buildings and improvements 324,338,702 1,051,872,475 1,376,211,177 Machinery and equipment 86,136,929 17,956,150 104,093,079 Total capital assets, being depreciated 1,026,305,901 1,069,828,625 2,096,134,526 Less accumulated depreciation for:

Infrastructure (238,120,517) (238,120,517) -
Buildings and improvements (143,856,222) (448,796,561) (592,652,783) Machinery and equipment (57,357,324) (13,090,312) (70,447,636) Total accumulated depreciation (439,334,063) (461,886,873) (901,220,936) Total capital assets, being depreciated, net 586,971,838 607,941,752 1,194,913,590 Lease assets, being amortized:

Intangible asset - right to use 2,017,470 2,866,646 4,884,116 Accumulated amortization (997,527) (215,324) (1,212,851) Total lease assets, being amortized, net 1,019,943 2,651,322 3,671,265 Governmental activities capital assets, net $ 822,614,886 $ 819,158,667 $ 1,641,773,553 ATTACHMENT A 1677
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 7 – Capital Assets (Continued)
B. Governmental Activities
Summary of changes in governmental activities capital assets for the year ended June 30,2022, are as follows:

Governmental activities depreciation and amortization expenses for capital assets for the year ended June 30, 2022, are as follows:

Balance
July 1, 2021 Balance
Governmental activities: (As restated) Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated:

Land 38,196,565 $ - $ - $ - $ 38,196,565 $
Intangible assets - easements 4,354,960 - - - 4,354,960 Construction in progress 162,224,943 45,697,412 (32,431) (15,818,344) 192,071,580 Total capital assets, not being depreciated 45,697,412 204,776,468 (32,431) (15,818,344) 234,623,105 Capital assets, being depreciated:

Infrastructure 614,965,324 864,946 - - 615,830,270
Buildings and improvements 309,180,122 15,158,580 - 324,338,702 Machinery and equipment 80,079,827 5,448,764 (117,405) 725,743 86,136,929 Total capital assets, being depreciated 1,004,225,273 6,313,710 (117,405) 15,884,323 1,026,305,901 Less accumulated depreciation for: -
Infrastructure (226,546,308) (11,574,209) - (238,120,517) - Buildings and improvements (137,721,588) (6,134,634) - (143,856,222) - Machinery and equipment (51,955,384) (5,402,592) 652 - (57,357,324) Total accumulated depreciation (416,223,280) (23,111,435) 652 (439,334,063) - Total capital assets, being depreciated, net 588,001,993 (16,797,725) (116,753) 15,884,323 586,971,838 Lease assets, being amortized:

Intangible asset - right to use 1,854,940 162,530 - - 2,017,470 Accumulated amortization - (997,527) - - (997,527)
Total lease assets, being amortized, net 1,854,940 (834,997) - - 1,019,943 Governmental activities capital assets, net $ 794,633,401 $ 28,064,690 $ (149,184) $ 65,979 $ 822,614,886 Governmental Activities:

General Government 1,321,628 $
Public Works 13,103,414
Parks & Recreation 3,400,216
Library 202,816
Public Safety 1,277,194
Internal Service Funds 4,803,694
Total 24,108,962 $
ATTACHMENT A 1678
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 7 – Capital Assets (Continued)
C. Business-Type Activities
Summary of changes in business-type activities capital assets for the year ended June 30, 2022, are as follows:

Business-type activities depreciation and amortization expenses for capital assets for the year ended June 30, 2022, are as follows:

Balance
July 1, 2021 Balance
Business-type activities: (As restated) Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated:

Land 15,127,218 $ - $ - $ 15,127,218 $
Construction in progress 123,266,238 70,172,137 - - 193,438,375 Total capital assets, not being depreciated 138,393,456 70,172,137 - - 208,565,593 Capital assets, being depreciated:

Buildings and improvements 1,049,166,303 6,858,747 (4,152,575) 1,051,872,475 - Machinery and equipment 17,710,847 360,471 (49,189) (65,979) 17,956,150 Total capital assets, being depreciated 1,066,877,150 7,219,218 (4,201,764) (65,979) 1,069,828,625 Less accumulated depreciation for:

Buildings and improvements (426,101,096) (22,695,465) - (448,796,561) - Machinery and equipment (12,137,056) (953,256) - - (13,090,312) Total accumulated depreciation (438,238,152) (23,648,721) - (461,886,873) - Total capital assets, being depreciated, net 628,638,998 (16,429,503) (4,201,764) (65,979) 607,941,752 Lease assets, being amortized:

Intangible asset - right to use 2,857,888 8,758 - - 2,866,646 Accumulated amortization - (215,324) - - (215,324)
Total lease assets, being amortized, net 2,857,888 (206,566) - - 2,651,322 Business-type activities capital assets, net $ 769,890,342 $ 53,536,068 $ (4,201,764) $ (65,979) $ 819,158,667 Business-type Activities:

Water Utility 7,861,294 $
Wastewater Utility 12,632,253
Stormwater Utility 1,684,553
Parking Authority 1,053,748
Golf Courses 532,956
Downtown Marina 99,241
Total 23,864,045 $
ATTACHMENT A 1679
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 7 – Capital Assets (Continued)
D. Fiduciary Fund Activities
Summary of Changes in Fiduciary Fund capital assets for the year ended June 30, 2022, are as follows:

Fiduciary fund depreciation and amortization expenses for capital assets for the year ended June 30, 2022, are as follows:

Balance
July 1, 2021 Balance
Fiduciary fund activities: (As restated) Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated:

Land 12,602,828 $ - $ (470,849) $ - $ 12,131,979 $
Intangible assets - easements 100,000 - - - 100,000
Total capital assets, not being depreciated (470,849) 12,702,828 - 12,231,979 Capital assets, being depreciated:

Infrastructure 10,898,549 - - - 10,898,549
Buildings and improvements 10,929,529 - - 10,929,529
Machinery and equipment 471,546 - - - 471,546
Total capital assets, being depreciated - 22,299,624 - - 22,299,624 Less accumulated depreciation for:

Infrastructure (3,025,267) (249,654) - - (3,274,921)
Buildings and improvements (6,463,024) (301,151) - (6,764,175) Machinery and equipment (279,383) (18,677) - - (298,060) Total accumulated depreciation (9,767,674) (569,482) - - (10,337,156) Total capital assets, being depreciated, net 12,531,950 (569,482) - - 11,962,468 Lease assets, being amortized:

Intangible asset - right to use 7,615 - - - 7,615
Accumulated amortization - (4,352) - - (4,352)
Total lease assets, being amortized, net 7,615 (4,352) - - 3,263 Fiduciary fund activities capital assets, net $ 25,242,393 $ (573,834) $ (470,849) $ - $ 24,197,710 Fiduciary Fund Activities:

Successor Agency $ 573,834
ATTACHMENT A 1680
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 8 – Long-Term Liabilities
A. Governmental Activities
Summary of changes in governmental activities long-term debt for the year ended June 30, 2022, are as follows:

Balance
July 1, 2021 Payments/ Balance Long-term
(As restated) Additions Reductions June 30, 2022 Short-Term Portion Governmental Fund Activities Debt
City Debt
Assured Guaranty Settlement
Assured Settlement Obligation $ - 53,247,671 $ (164,013) $ $ 198,847 53,083,658 $ $ 52,884,811 Subtotal Settlement Obligation Bonds 53,247,671 (164,013) - 53,083,658 198,847 52,884,811 Other Long-Term Obligations
CDBG
USD-HUD Housing Note 6,115,000 (1,750,000) - 4,365,000 1,830,000 2,535,000 Subtotal CDBG 6,115,000 (1,750,000) - 4,365,000 1,830,000 2,535,000 Notes Payable
- 206,486 (206,486) - - -
Subtotal Notes Payable 206,486 - (206,486) - - -
Lease Payable
Lease Payable 252,115 162,530 (79,043) 335,602 80,492 255,110 Subtotal Lease Payable 252,115 162,530 (79,043) 335,602 80,492 255,110 Total $ 162,530 59,821,272 $ $ (2,199,542) $ 2,109,339 57,784,260 $ $ 55,674,921 Capital / Equipment (Fire)
Tax-Exempt Notes Obligation-2013
ATTACHMENT A 1681
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
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, 2022, 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, 2022, bonds totaling $25,955,000 are due in installments of principal ranging from $950,000 on September 1, 2022, 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 $1,618,283 on July 1, 2022 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, 2043, 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, 2023, is currently anticipated to be $4,021,000.

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 payments.

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%.

ATTACHMENT A 1682
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 8 – 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) 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 the 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.

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.

Year
June 30, Principal Interest Principal Interest Principal Interest 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 93,227 1,362,289 2,532,500 250,000
2028-2032 1,053,420 6,687,459 12,647,251 - 1,250,000 -
2033-2037 2,006,729 6,298,195 12,651,565 - 1,250,000 -
2038-2042 4,240,216 5,529,620 5,678,669 6,969,832 1,250,000 - 2043-2047 5,890,078 4,157,332 8,257,125 4,393,189 870,029 626,366 2048-2052 7,703,946 2,343,464 10,797,340 1,850,661 1,415,845 256,057 2053-2054 3,709,308 309,656 - 331,703 - -
$ 25,732,947 $ 32,291,293 $ 24,733,134 $ 51,162,186 $ 2,617,577 $ 5,882,423 Special Fund Payments 2007 Lease Ask Payments Supplemental Payments ATTACHMENT A 1683
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
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.

Annual Debt Service Requirements to Maturity
Finance Purchase - Fire Pump 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 Oshkosh Financing in this 2012 issuance are pledged. In the event of default payment or failure to make appropriations for the annual lease payments the aforementioned trucks may be subject to repossession. 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 finance purchase was paid off during the year ended June 30, 2022.

Year Ending
June 30, Principal Interest
2023 1,830,000 $ 89,979 $
2024 1,920,000 41,541
2025 615,000 8,204
Total 4,365,000 $ 139,724 $
Notes Payable
U.S. Dept. of Housing & Urban Development
Fire Vehicle - Lease #3
Machinery and equipment 1,871,404 $
Less: accumulated depreciation (1,164,429)
Total 706,975 $
ATTACHMENT A 1684
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Payable
The City has entered leases for the building and machine uses. The terms of the agreements range from 21 months to 59 months. The calculated interest rates used were between 0.3080% to 0.56% based on the term of the agreements.

Principal and interest payments to maturity at June 30, 2022 are as follows:

B. Business-Type Activities
Summary of changes in business-type activities long-term debt for the year ended June 30, 2022, are as follows:

Year Ending
June 30, Principal Interest
2023 $ 80,492 $ 1,372
2024 82,600 994
2025 83,329 611
2026 83,713 227
2027 5,468 2
Total $ 335,602 $ 3,206
Leases
Balance
July 1, 2021 Balance
Water Utility Obligations (As restated) Additions Reductions Disc/Deferred June 30,2022 Short-Term Long-Term 2018A Water System Demand Revenue Bonds 135,295,000 $ - $ (5,365,000) $ - $ 129,930,000 $ 5,645,000 $ 124,285,000 $ Premium 13,141,408 - - (810,073) 12,331,335 - 12,331,335 (545,000) 54,245,000 - 53,700,000 560,000 53,140,000
Subtotal Water Utility Obligations 202,681,408 - (5,910,000) (810,073) 195,961,335 6,205,000 189,756,335 Wastewater Utility Obligations
2014 Wastewater Refunding Revenue Bonds 47,950,000 (4,195,000) - 43,755,000 - 4,410,000 39,345,000 Premium (on 2014 refunding) 5,963,845 - - (729,982) 5,233,863 5,233,863 - 2019 Bond Anticipation Note 118,510,000 (118,510,000) - - - - 2020 EPA WIFIA loan 108,000,000 - 108,000,000 108,000,000 - Lease Payable - 8,758 (3,644) - 5,114 4,382 732
Subtotal Wastewater Utility Obligations 172,423,845 108,008,758 (122,708,644) (729,982) 156,993,977 4,414,382 152,579,595 Central Parking District
- 24,355,000 (245,000) - 24,110,000 360,000 23,750,000
Premium 5,382,556 - - (209,710) 5,172,846 - 5,172,846
Lease Payable 2,812,689 - (170,056) - 2,642,633 169,052 2,473,581 Subtotal Central Parking District 32,550,245 - (415,056) (209,710) 31,925,479 529,052 31,396,427 Marina Operation
CDBW Harbor Facility Construction
and Planning Loans 10,870,821 - - - 10,870,821 - 10,870,821 Subtotal Marina Operation 10,870,821 - - - 10,870,821 - 10,870,821 Total - Enterprise Fund Activities Debt $ 108,008,758 418,526,319 $ (129,033,700) $ (1,749,765) $ 395,751,612 $ 11,148,434 $ 384,603,178 $ 2019A Water System Demand Taxable Revenue
2020 Parking Lease Revenue Bonds
ATTACHMENT A 1685
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 Note 8 – 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, 2022, $129,930,000 of 2018A Bonds remain outstanding with installments of principal ranging from $5,645,000 to $12,195,000 due October 1, 2022, 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 net 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 $12,331,335, and unamortized loss on refunding of $5,884,651.

Stockton Public Financing Authority Water Revenue Refunding Bonds Series 2019A 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, 2022, $53,700,000 of 2019A Bonds remain outstanding with installments of principal ranging from $560,000 to $15,635,000 due from October 1, 2022, through October 1, 2040, with interest rates ranging from 2.145% 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 at par and are reported net of an unamortized loss on refunding of $6,110,331.

Pledged 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, 2022, total principal and interest paid was $14,293,290 and net revenues were $35,287,899. Rate stabilization Funds balances at the end of FY 21/22 stand at $2,980,904. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $270,140,505.

Events of default with finance related consequences and subjective acceleration are included in section 7 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.

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.

ATTACHMENT A 1686
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
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, 2022.

Unused lines of Credit
There are no unused lines of credit as it pertains to the operation of the water utility.

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, 2022, bonds totaling $43,755,000 are due in annual installments of principal ranging from $4,410,000 to $6,530,000 from September 1, 2022, 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, 2022, there is $1,223,060 outstanding. The principal amount due is reported net of the unamortized premium of $5,233,863.

Stockton Public Financing Authority Wastewater Bond Anticipation Notes, Series 2019 Wastewater Bond Anticipation Notes, Series 2019 (the “Notes”) were issued in an amount of $118,510,000 by the SPFA on October 22, 2019. As of June 30, 2022, notes totaling $118,510,000 were due to be repaid June 1, 2022, were outstanding at a rate of 1.40%, and were 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 Facility 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. The Notes were paid off during the year ended June 30, 2022.

ATTACHMENT A 1687
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Wastewater Utility (Continued)
Stockton Public Financing Authority- 2020 Water Infrastructure Finance and Innovation Act (WIFIA) Loan The WIFIA loan was entered into with the U.S. Environmental Protection Agency (the“EPA”) on September 29, 2020, and secured long-term financing in the amount of $108.000,000 at a rate of 1.20%. The payments are interest only until March 1, 2030. As of June 30, 2022, bonds totaling $108,000,000 are due in annual installments of principal ranging from $4,318,797 to $5,548,218 from March 1, 2030 through March 1, 2051.

Proceeds of the WIFIA loan were taken out in November 2021, and together with cash on hand, were used to redeem the 2019 Bond Anticipation Notes (BANs) in the amount of $118,510,000 on December 1, 2021.

This long-term financing is for the Regional Wastewater Control Facility upgrades, which are necessary to maintain compliance with updated state and federal standards. Repayment of the WIFIA loan is from a pledge of net revenues of the Wastewater Fund and the loan is issued on parity with the 2014A bonds. The loan was issued at par value.

In the event of default, 1) the EPA may suspend or terminate all of its obligations with respect to the disbursement of any undisbursed amounts of the loan, 2) may apply the default rate provisions of the interest rate specified in the agreement, 3) may suspend or debar the City from further participation in any government program administered by the EPA and to notify other departments and agencies of such default; and/or be 4) entitled and empowered to institute any actions or proceedings at law or in equity for the collection of any sums due and unpaid.

Pledged 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, 2022, the City paid total principal and interest of $7,695,195, and an additional $10,510,000 in cash was utilized to redeem the 2019 BANs, and had net revenues of $30,847,429. Rate stabilization Funds balances at the end of FY 21/22 stand at $12,998,654. On June 30, 2022, the total principal and interest remaining to be paid on the Wastewater Bonds are $185,740,402.

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.

Debt Covenants
The Bonds requires 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, 2022, at each measurement period.

ATTACHMENT A 1688
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Wastewater Utility (Continued)
Unused lines of Credit
There were no unused lines of credit as it pertains to the operation of the wastewater utility.

Lease Payable
On 09/10/2021, the City entered into a 23 month lease as Lessee for the use of Building ID 32627. An initial lease liability was recorded in the amount of $8,758 as of 06/30/2022, the value of the lease liability is $5,114. Stockton, CA is required to make monthly fixed payments of $366.00. The lease has an interest rate of 0.3080%. The buildings estimated useful life was 23 months as of the contract commencement. The value of the right to use asset as of 06/30/2022 of $8,758 with accumulated amortization of $3,585 is included with Buildings on the Lease Class activities.

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, 2022, the 2020 Parking Bonds totaling $24,110,000 are due in annual installments of principal ranging from $360,000 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 payoff 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 $5,172,846, and unamortized loss on refunding of $427,240.

Lease Payable
The City has entered leases for the land, land improvements, buildings. The terms of the agreement range from 21 to 183 months. The calculated interest rates used were 0.3080% to 1.5120% based on the term of the agreements. The total principal and interest remaining to be paid on the lease payable are $2,936,618.

Pledged Revenues
The City has pledged future net revenues from the Parking Authority Fund for the repayment of the settlement liability. For the year ended June 30, 2022, the City paid total principal and interest of $1,419,200 and had net revenues of $836,762.

ATTACHMENT A 1689
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
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 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.

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, 2022 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 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.

Under a settlement agreement with the Department of Boating and Waterways (DBAW), net revenues of the marina are pledged toward reducing the liability. The marina operates on a subsidy from the City and, absent that subsidy, is anticipated to operate at a loss for the foreseeable future. It is anticipated that settlement payments with the bond insurer for the 2004 bonds. There is a covenant to set rates such that they will provide net coverage for Operation and Maintenance (including the settlement payments) of 1.0 coverage. There are no events of default with finance related consequences and subjective acceleration clauses do not exist with respect to these frozen obligations.

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 reserve 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. The debt payment schedule was not included in the table listed below in the “Annual Debt Service Requirements to Maturity” table.

Annual Debt Service Requirements to Maturity
Water Utility Wastewater Utility
Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2023 $ 6,205,000 $ 8,096,450 $ 4,410,000 $ 2,077,500 $ 1,296,000 - $ $ 360,000 $ 1,161,950 $ 173,434 $ 38,796 2024 6,220,000 7,801,588 4,635,000 1,851,375 - 1,296,000 545,000 1,143,950 172,358 36,214 2025 6,530,000 7,498,223 5,090,000 1,608,250 - 1,296,000 570,000 1,116,700 174,239 33,601 2026 6,860,000 7,178,633 5,345,000 1,347,375 - 1,296,000 600,000 1,088,200 176,891 30,949 2027 7,215,000 6,841,793 5,620,000 1,073,250 - 1,296,000 630,000 1,058,200 179,585 28,255 2028-2032 41,980,000 28,487,376 18,655,000 1,430,125 8,689,419 6,376,038 3,655,000 4,786,000 939,779 99,421 2033-2037 55,205,000 16,879,795 - 22,652,525 - 5,285,544 4,660,000 3,776,250 831,461 26,759 2038-2042 53,415,000 3,726,648 - 24,044,689 - 3,885,026 5,790,000 2,650,000 - - 2043-2037 - - - 25,522,413 - 2,398,436 7,300,000 1,130,500 - - 2048-2052 - - - 27,0 - 90,954 820,484 - - - -
Total $ 183,630,000 $ 86,510,505 $ 43,755,000 $ 9,387,875 $ 108,000,000 $ 25,245,528 $ 24,110,000 $ 17,911,750 $ 2,647,747 $ 293,995 Central Parking District
Revenue Bonds Revenue Bonds WIFIA Loan Settlement Liability Leases ATTACHMENT A 1690
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 8 – Long-Term Liabilities (Continued)
C. Fiduciary Fund Activities
Summary of changes in fiduciary fund long-term liabilities for the year ended June 30, 2022, are as follows:

Successor Redevelopment Agency
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 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, 2022, 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 $6,849,237.

The 2016 Tax Allocation Bonds, Series B (Federally Taxable) were issued in 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, 2022, the 2016 Series B Bonds totaling $11,180,000 are due in annual installments of principal ranging from $3,840,000 to $3,925,000 due in annual installments through on September 1, 2024, with interest rates ranging from 2.375% to 2.75%. The principal amount due is reported net of the unamortized discount of $70,195.

Balance Balance
Successor Agency to RDA of Stockton July 1, 2021 Additions Reductions June 30, 2022 Current Non-Current Revenue Bonds
$ - 73,310,000 $ - $ 73,310,000 $ - $ 73,310,000 $
Premium 7,412,188 - (562,951) 6,849,237 562,951 6,286,286 14,940,000 (3,760,000) - 11,180,000 3,840,000 7,340,000 Discount (102,591) - 32,396 (70,195) (32,396) (37,799)
Total Successor Agency to RDA Liabilities 95,559,597 $ $ (4,290,555) - $ $ 91,269,042 $ 4,370,555 $ 86,898,487 2016 Series A Successor Agency
Tax Allocation Bonds
2016 Series B Successor Agency
Tax Allocation Bonds (Taxable)
ATTACHMENT A 1691
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 8 – 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 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
D. Debt Without City Commitment
Community Facilities Districts Debts:

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 taxes 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 reported as liabilities in the City’s basic financial statements. As of June 30, 2022, there was five CFD special tax bonds and four revenue bonds outstanding with aggregate principal amounts payable of $29,009,000 and $57,130,000, respectively.

Year
Ending
June 30, Principal Interest Principal Interest
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 4,360,000 3,026,800 - -
2028-2032 25,290,000 11,551,500 - -
2033-2037 31,705,000 5,080,088 - -
2038-2042 7,195,000 149,688
Total $ 73,310,000 $ 33,153,776 $ 11,180,000 $ 427,569
2016 Series A Successor Agency Tax
Allocation Bonds
2016 Series B Successor Agency Tax
Allocation Bonds (Taxable)
ATTACHMENT A 1692
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 8 – Long-Term Liabilities (Continued)
D. Debt Without City Commitment (Continued)
E. Conduit Debt
Conduit Debt (No City Commitment) – At June 30, 2022, there is no conduit debt outstanding that was issued with the City as the conduit issuer.

Note 9 – 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, 2022. 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:

Amount of Issue Outstanding
June 30, 2022
CFD Special Tax Bond:

Cannery Park CFD 2005-1 Series 2019 9,855,000 $ 9,245,000 $ CFD 2018-12018 Arch Road/Newcastle 3,535,000 3,325,000
Westlake CFD 2006-2 SERIES 2019 ( Private Placement) 3,134,000 2,934,000 Westlake Villages II Imp Area 1A (Series 2020) 8,970,000 8,970,000 Westlake Villages II Imp Area 1A (Series 2021) 4,535,000 4,535,000 Subtotal CFD Special Tax Bond 29,009,000
Revenue Bond:
2016 Combined Refunding $ 33,350,000 $ 24,900,000
CFD 99-02 2018 Arch Road East 24,210,000 22,970,000
AD 2014-01 Mosher Estates 13,020,000 9,155,000
2001 Combined Assessment District Refunding 1,989,000 105,000 Subtotal Revenue Bond 57,130,000
Total Noncity Obligation $ 86,139,000
Governmental Business-Type
Activities Activities Total
Beginning July 1, 2021 $ 13,116,890 $ 1,593,181 $ 14,710,070 Additions 8,123,283 1,245,680 9,368,964
Payments (9,284,972) (1,398,955) (10,683,927)
Balance June 30, 2022 $ 11,955,201 $ 1,439,906 $ 13,395,107 Current Portion $ 6,724,018 $ 917,209 $ 7,641,227
Noncurrent Portion $ 5,231,183 $ 522,697 $ 5,753,880
ATTACHMENT A 1693
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 10 – Unamortized Loss on Refunding
Summary of changes in unamortized loss on refunding for the year ended June 30, 2022:

Note 11 – 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, 2022, are as follows:

Balance
July 1, 2021 Additions Deletions Balance June 30, 2022
Municipal Utility Enterprise Debt Obligations
2018 Water Refunding 6,271,226 $ - $ (386,576) $ 5,884,651 $ 2019 Water Refunding 6,445,144 - (334,813) 6,110,331
2014 Wastewater Refunding Revenue Bonds - 1,393,644 (170,583) 1,223,060 Subtotal - Municipal Utility Enterprise Debt - 14,110,014 (891,972) 13,218,042 Parking Authority
2020 Parking Revenue Bonds 444,560 - 427,240 (17,321)
Total Deferred Amount on Refunding $ - 14,554,574 $ (909,292) $ 13,645,282 $ Other Total
General Federal Housing Special Capital Governmental Governmental Fund Grants Grants Improvement Funds Funds
Fund balances:

Nonspendable:

Inventories 521,303 $ - $ - $ - $ - $ 521,303 $
Prepaid expense 24,042 - - - 25,315 49,357
Advance deposits 1,532,011 - - - 125,387 1,657,398
Total Nonspendable 2,077,356 - - - 150,702 2,228,058
Restricted for:

Section 108 Loan 1,277,452 - - - - 1,277,452
Community development - - - - 51,123,327 51,123,327
Debt service reserve - - - - 1,953,877 1,953,877
General government - - - - 4,565,789 4,565,789
Housing - 86,380,858 - - 77,554,740 163,935,598
Libraries and arts 3,029,784 - - - 6,067,444 9,097,228
Parks and recreation 972,956 - - - 39,011,095 39,984,051 Public safety 9,177 - 36,802,822 - 14,943,908 51,755,907 Solid waste/recycling - - - - 5,994,885 5,994,885
Streets, transit & traffic - - - 19,594,192 84,311,836 103,906,028 Total Restricted 5,289,369 86,380,858 36,802,822 19,594,192 285,526,901 433,594,142 Committed for:

General government operations 123,753,548 - - - 123,753,548 - Total Committed 123,753,548 - - - 123,753,548 -
Assigned for:

General government operations 4,284,719 - - - 4,284,719 - Total Assigned 4,284,719 - - - 4,284,719 -
Unassigned: 43,208,401 - - - 43,208,401 -
Total Fund Balances $ 178,613,393 $ 86,380,858 $ 36,802,822 $ 19,594,192 $ 285,677,603 $ 607,068,868 ATTACHMENT A 1694
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 12 – 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
Deferred Outflows of Resources: Activites Activities Total CalPERS:

Safety
Contributions made after measurement date 39,176,629 $ - $ 39,176,629 $ Differences between expected and actual experience 1,939,230 - 1,939,230 Total Safety Plan 41,115,859 - 41,115,859
Miscellaneous
Contributions made after measurement date 18,698,854 1,798,657 20,497,511 Total Miscellaneous Plan 18,698,854 1,798,657 20,497,511 PARS
Change in assumptions - 100,836 100,836
Differences between expected and actual experience - 57,138 57,138 Difference between projected and actual investment earnings - 1,032,633 1,032,633 Total PARS Plan - 1,190,607 1,190,607
Total Pensions related Deferred Outflows of Resources $ 2,989,264 59,814,713 $ 62,803,977 Net Pension Liability:

CalPERS:

Safety 260,738,763 $ - $ 260,738,763 $
Miscellaneous 52,776,609 5,076,621 57,853,230
PARS 3,314,753 - 3,314,753
Total Net Pension Liability $ 313,515,372 $ 8,391,374 $ 321,906,746 Deferred Inflows of Resources:

CalPERS:

Safety
Change in assumptions $ 183,436 $ - $ 183,436
Differences between expected and actual experience 8,133,062 8,133,062 - Difference between projected and actual investment earnings 88,410,848 88,410,848 - Total Safety Plan 96,727,346 - 96,727,346
Miscellaneous
Differences between expected and actual experience 4,855,157 467,021 5,322,178 Difference between projected and actual investment earnings 61,122,687 5,879,436 67,002,123 Total Miscellaneous Plan 65,977,844 6,346,457 72,324,301 PARS
Differences between expected and actual experience - 26,109 26,109 Total PARS Plan - 26,109 26,109
Total Pension Deferred Inflows of Resources $ 162,705,190 $ 6,372,566 $ 169,077,756 ATTACHMENT A 1695
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 12 – 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.

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 for 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 five 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 average salary for PEPRA (California Employees’ Pension Reform Act of 2013 PEPRA members) multiplied by the employees’ years of service. 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, 2022, 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 21.01% 21.01%
Safety
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 10.22% 10.22%
Miscellaneous
ATTACHMENT A 1696
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 12 – Retirement Plans (Continued)
A. CalPERS Retirement Plan (Continued)
General Information about Pension Plans (Continued)
Employees Covered - At June 30, 2021, the measurement date, 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, 2022, the Safety Plan employer contribution rate was 21.01% of wages. The Miscellaneous Plan was 10.22% of wages.

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, applying 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:

Safety Plan Miscellaneous Plan
Inactive employees or beneficiaries currently receiving benefits 922 1561 Inactive employees entitled to but not yet receiving benefits 459 1470 Active employees 597 960
1978 3991
Safety Plan Miscellaneous Plan
Valuation Date 6/30/2020 6/30/2020
Measurement Date 6/30/2021 6/30/2021
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Payroll Growth 2.75% 2.75%
Projected Salary Increase Varies (1) Varies (1)
Mortality see note (2) see note (2)
(1) Depending on age, service and type of employment
(2)
Entry Age Normal in accordance with the requirements of GASB 68 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Postretirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

ATTACHMENT A 1697
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 12 – Retirement Plans (Continued)
A. CalPERS Retirement Plan (Continued)
Net Pension Liability (Continued)
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building -block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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

The expected real rates of return by asset class are as follows:

Discount rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of

0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

Asset Class1
Assumed Asset
Allocation
Real Return Years
1-10(2)
Real Return Years
11+(3)
Public Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.00%
(2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period. (1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt ATTACHMENT A 1698
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
95 Note 12 – Retirement Plans (Continued)
A. CalPERS Retirement Plan (Continued)
Net Pension Liability (Continued)
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

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

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 06/30/2020 $ 1,177,044,021 $ 788,337,261 388,706,760 $ Changes for the year:

Service cost 17,442,651 - 17,442,651
Interest on total pension liability 82,106,386 - 82,106,386 Changes of Assumption - - -
Differences between expected and actual experience (5,649,159) - (5,649,159) Net plan to plan resource movement - - -
Contributions-employer - 37,208,895 (37,208,895)
Contributions-employee - 7,775,415 (7,775,415)
Net investment income - 177,671,066 (177,671,066)
Benefit payments, including refunds of employee (63,550,272) (63,550,272) - Administrative expense - (787,501) 787,501
Other Miscellaneous Income (Expense) - - -
Net Changes 30,349,606 158,317,603 (127,967,997)
Balances at 06/30/2021 $ 1,207,393,627 $ 946,654,864 $ 260,738,763 Safety Plan
Increase (Decrease)
ATTACHMENT A 1699
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
96 Note 12 – 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-percentagepoint 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
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 06/30/2020 $ 762,322,881 $ 603,352,840 158,970,041 $ Changes for the year:

Service cost 11,194,084 - 11,194,084
Interest on total pension liability 53,055,641 - 53,055,641 Changes of Assumption - - -
Differences between expected and actual experience (5,435,616) - (5,435,616) Net plan to plan resource movement - - -
Contributions-employer - 20,363,651 (20,363,651)
Contributions-employee - 4,939,316 (4,939,316)
Net investment income - 135,230,666 (135,230,666)
Benefit payments, including refunds of employee (40,894,732) (40,894,732) - Administrative expense - (602,713) 602,713
Other Miscellaneous Income (Expense) - - -
Net Changes 17,919,377 119,036,188 (101,116,811)
Balances at 06/30/2021 $ 780,242,258 $ 722,389,028 $ 57,853,230 Miscellaneous Plan
Increase (Decrease)
Safety Plan
1%
Decrease
Rate (6.15%)
Current
Discount
Rate (7.15%)
1%
Increase
Rate (8.15%)
Net pension liability $ 422,492,487 $ 260,738,763 $ 128,234,486 Miscellaneous Plan
1%
Decrease
Rate (6.15%)
Current
Discount
Rate (7.15%)
1%
Increase
Rate (8.15%)
Net pension liability $ 155,132,371 $ 57,853,230 $ (23,004,058) ATTACHMENT A 1700
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
97 Note 12 – 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, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The $39,176,629 and $20,497,511 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, 2022, will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. 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 $ 39,176,629 $ - Changes of assumptions - (183,436)
Differences between expected and actual experience 1,939,230 (8,133,062) Net differences between projected and actual
earnings on pension plan investments - (88,410,848)
Total $ 41,115,859 $ (96,727,346)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contribution subsequent to measurement date $ 20,497,511 $ - Changes of assumptions - -
Differences between expected and actual experience - (5,322,178) Net differences between projected and actual
earnings on pension plan investments - (67,002,123)
Total $ 20,497,511 $ (72,324,301)
Safety Plan
Miscellaneous Plan
Deferred
Outflows/(Inflows)
of Resources.
2022 $ (23,822,026)
2023 (23,336,142)
2024 (23,083,596)
2025 (24,542,352)
2026 -
Thereafter -
Total $ (94,784,116)
Safety Plan
Measurement
periods
ended June 30:

ATTACHMENT A 1701
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
98 Note 12 – 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 (the “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, 2020, valuation date, the following employees were covered by the 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.

Deferred
Outflows/(inflows)
of Resources.
2022 $ (21,026,533)
2023 (16,699,868)
2024 (16,058,257)
2025 (18,539,643)
2026 -
Thereafter -
Total $ (72,324,301)
Misccellaneous Plan
Measurement
periods
ended June 30:

PARS Enhancement Plan
Inactive employees or beneficiaries currently receiving benefits 35 Inactive employees entitled to but not yet receiving benefits 0 Active employees 47
82 ATTACHMENT A 1702
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
99 Note 12 – Retirement Plans (Continued)
B. PARS Enhancement Plan (Continued)
Net Pension Liability
The City’s net pension liability was measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2020, using standard update procedures.

Actuarial assumptions – The total pension liability on June 30, 2022, 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 contributions 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
Measurement Date 6/30/2022
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%
Mortality see note (2)
(1) Depending on years of service.
(2) Pre-retirement: Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Post-Retirement: Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

ATTACHMENT A 1703
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
100
Note 12 – 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 Estimated Allocation
Long-Term
Expected
Arithmetic Real
Rate of Return
Long-Term
Expected
Geometric Real
Rate of Return
US Cash 6.23% 0.21% 0.20%
US Core Fixed Income 46.31% 1.95% 1.84%
US Broad Equity Market 37.82% 5.70% 4.10%
Foreign Developed Equity 4.76% 6.99% 5.25%
Emerging Markets Equity 3.11% 9.44% 5.97%
USREITs 1.77% 6.27% 4.11%
Total 100.00%
Assumed Inflation - Mean 2.35% 2.35%
Assumed Inflation - Standard Deviation 1.25% 1.25%
Portfolio Real Mean Return 3.81% 3.41%
Portfolio Nominal Mean Return 6.16% 5.84%
Portfolio Standard Deviation 8.26%
City's Long-Term Expected Rate of Return 6.50%
PARS Enhancement Plan
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 06/30/2021 $ $ 10,681,302 1,954,839 12,636,141 $ Changes for the year:

Service cost 135,750 - 135,750
Interest on total pension liability 809,517 - 809,517
Effect of economic/demographic gains or losses - - -
Effect of assumptions changes or inputs - - -
Benefit payments (645,746) (645,746) -
Employer Contributions - 1,055,182 (1,055,182)
Net investment income - (1,452,185) 1,452,185
Administrative expense - (17,644) 17,644
Net Changes (1,060,393) 299,521 1,359,914
Balances at 06/30/2022 $ 9,620,909 12,935,662 $ 3,314,753 $ Increase (Decrease)
PARS Enhancement Plan
ATTACHMENT A 1704
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
101
Note 12 – 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-percentagepoint 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, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The amounts above are net of outflows and inflows recognized in the 2021-2022 measurement period expense.

Amounts reported as deferred outflows and deferred inflows of resources related to pensions 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 $ 4,840,934 $ 3,314,753 $ 2,025,531 PARS Enhancement Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions $ 100,836 $ -
Differences between expected and actual experience 57,138 (26,109) Net differences between projected and actual
earnings on pension plan investments 1,032,633 -
Total $ 1,190,607 $ (26,109)
PARS Enhancement Plan
Deferred
Outflows/(inflows)
of Resources.
2023 331,319 $
2024 240,381
2025 160,996
2026 431,802
2027 -
Thereafter -
Total $ 1,164,498
Measurement
periods
ended June 30:

PARS Enhancement Plan
ATTACHMENT A 1705
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
102
Note 12 – 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 2021-22, the Section 115 Plan, has $69.9 million available to fund the annual liability payments. The Trust is monitored by the Administrative Services and Human Resources Departments.

Note 13 – 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 selfadministered 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 2.25% discount rate to reflect future investment earnings. While the ultimate amounts of losses incurred through June 30, 2022 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.

ATTACHMENT A 1706
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
103
Note 13 – 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 Powers 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 $7.5 million per occurrence, with reinsurance above the $7.5 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, 2022, 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 $250,000. Premiums, which are negotiated each year, are based on property values and are not subject to retroactive adjustments.

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. In 2020, the EIA became Public Risk Innovation, Solutions, and Management. PRISM has since expanded to allow admittance from cities and other entities which currently includes 95% of the counties in California, nearly 70% of the cities, as well as, numerous school districts, special districts, housing authorities, fire districts, 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 PRISM. Statutory coverage for losses above $5 million is covered by reinsurance and excess insurance policies throughout PRISM.

General Workers’ Health
Liability Compensation Benefits Total
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 Claims incurred 5,939,446 1,649,686 2,410,879 10,000,011 Claims paid (959,839) (7,544,686) (2,410,879) (10,915,404) Balance, June 30, 2022 15,504,233 $ $ 49,500,000 $ 396,000 $ 65,400,233 ATTACHMENT A 1707
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
104
Note 14 – 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. The 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 Successor 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 contaminated 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, 2022, 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.

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 contamination, and pre-cleanup and investigative study of the site about the groundwater contamination. Future groundwater cleanup and ongoing postremediation monitoring costs cannot be reasonably estimated. The net pollution remediation liability of this site as of June 30, 2022, 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, 2022.

ATTACHMENT A 1708
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
105
Note 15 – Individual Fund Disclosures
Deficit Fund Balances
At June 30, 2022, the following funds had net positions or fund balance deficits:
 The Parking Authority Fund has an accumulated deficit fund balance of $5,443,467 as of June 30, 2022. 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.  The Successor Agency to the Redevelopment Agency Private Purpose Trust Fund has an accumulated deficit fund balance of $59,563,635 as of June 30, 2022. 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.

Note 16 – 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 13, 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, 2022:

Fund Fund Type Deficit
Parking Authority Enterprise Fund $ (5,443,467)
Successor Agency Private Purpose Trust Fund (59,563,635) Amount
Waterfront Towers New City Hall 43,825,969 $
McNair Library & Recreation Center 7,248,590
Regional Waste Water Control Facility 4,145,215
Developer Reimbursements 5,598,041
Stockton Soccer Complex Upgrade 2,651,751
Sierra Nevada Street Sewert Line Rehab 2,306,966
Left Turn Street Additions 1,779,616
$ 67,556,148
ATTACHMENT A 1709
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
106
Note 16 – 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, 2022, 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 material 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.

Amount
General Fund 7,319,267 $
Housing Grant Fund 1,410,888
Special Grant Fund 14,262,063
Capital Improvements 68,989,057
Other Governmental Funds 14,035,873
Total Governmental Funds 106,017,148 $
ATTACHMENT A 1710
City of Stockton
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
107
Note 17 – Restricted Net Position
At June 30, 2022, restricted net position consisted of the following:

Note 18 – Subsequent Events
Issuance of Debt in Districts that have no commitment from City resources Westlake Villages II CFD 2018-2 Improvement Area 2
On July 13, 2022, the City issued Special Tax Bonds, Series 2022, at a par amount of $9,775,000. The final payoff of the debt is September 1, 2052. Payment of the bonds are solely derived from special taxes on residential properties in the district and city funds are not pledged toward repayment of the bonds.

Cannery Park II CFD 2019-1
On August 24, 2022, the City issued Special Tax Bonds, Series 2022, at a par amount of $9,915,000. The final payoff of the debt is September 1, 2052. Payment of the bonds are solely derived from special taxes on residential properties in the district and city funds are not pledged toward repayment of the bonds.

Note 19 – Prior Period Adjustments
Governmental
Activities
Business -Type
Activities Totals
Restricted:

Capital projects 19,594,192 $ 11,098,030 $ 30,692,222 $ Debt service 1,953,877 14,295,981 16,249,858
Section 108 loan 1,277,452 - 1,277,452
Measure AB 9,177 - 9,177
Community development 51,214,185 - 51,214,185
General government 42,855,193 - 42,855,193
Housing 176,792,082 - 176,792,082
Library and arts 9,097,228 - 9,097,228
Parks and recreation 40,002,148 - 40,002,148
Public safety 20,332,643 - 20,332,643
Solid waste/recycling 5,994,885 - 5,994,885
Streets, transit and traffic 85,314,162 - 85,314,162
Pension 69,968,331 - 69,968,331
Total restricted $ 524,405,555 $ 25,394,011 $ 549,799,566 Fiduciary Funds
Parking Successor
Authority Computer and Agency to the
Governmental Business-Type Nonmajor Radio Internal Redevelopmenmt Activities Activities Enterprise Fund Service Fund Agency Net Position at July 1, 2021 $ 927,005,110 $ 636,664,973 $ (5,579,757) $ 65,784,432 $ (59,008,834) Correction of cash with fiscal agent - - - (1,868,468) - GASB 87 Implementation 1,602,826 45,199 45,199 451,329 7,615 Net Position at July 1, 2021, as restated 928,607,936 636,710,172 (5,534,558) 66,235,761 (60,869,687) ATTACHMENT A 1711
108
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ATTACHMENT A 1712

REQUIRED SUPPLEMENTARY INFORMATION
ATTACHMENT A 1713
ATTACHMENT A 1714
1 Budgetary Information
Budget Process
City of Stockton
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
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, HOME Programs Loans Special Revenue Fund, Low-Moderate Income Housing City Loans 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 report 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 employed for the Debt Service Funds because effective budgetary control is alternately achieved through bond indenture provisions.

All unencumbered appropriations lapse at year-end, with the exception of ongoing capital improvement projects and miscellaneous grants in the respective funds. Encumbered appropriations are re-appropriated in the following year’s budget. 109
ATTACHMENT A 1715
1 Budgetary Information (Continued)
Budget Basis of Accounting
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 multiyear 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.

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

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 prepared 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.

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

City of Stockton
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
110
ATTACHMENT A 1716
This page intentionally left blank.
111
ATTACHMENT A 1717
Variance with
Original Final Actual Final Budget
REVENUES:

Taxes:

Property 38,416,000 $ 38,416,000 $ 41,066,425 $ 2,650,425 $ Utility user 34,342,000 34,342,000 38,328,240 3,986,240 Sales - levied by City 36,132,000 36,132,000 45,412,129 9,280,129 Franchise fees 16,595,630 16,595,630 17,925,299 1,329,669 Business license 9,695,000 9,695,000 14,024,356 4,329,356 Hotel/motel room 2,648,000 2,648,000 3,619,973 971,973
Document transfer 852,000 852,000 1,625,553 773,553
Other 2,614,939 2,614,939 4,015,502 1,400,563
Licenses and permits 577,014 577,014 510,976 (66,038)
Intergovernmental:

Federal grants and subsidies 116,429 371,603 364,918 (6,685) Sales and use tax - levied by state 58,455,000 58,655,000 76,238,894 17,583,894 Other governmental 40,800,524 40,870,209 41,533,967 663,758 Charges for services 9,819,386 9,819,386 10,016,145 196,759 Fines and forfeitures 1,199,004 1,199,004 1,876,711 677,707 Use of money and property 7,107,097 7,107,097 8,301,161 1,194,064 Investment income:

Interest income 2,056,193 2,056,193 (6,752,234) (8,808,427) Refunds and reimbursements 220,945 220,945 219,469 (1,476) Miscellaneous 5,849,967 4,760,287 5,642,210 881,923
266,932,307 267,497,128 303,969,694 37,037,387
EXPENDITURES:

General government:

City council 1,005,703 1,200,397 972,115 228,282
City manager 2,624,622 2,696,909 2,422,165 274,744
City attorney 1,311,102 1,311,111 1,135,880 175,231
City clerk 1,101,024 1,101,840 964,914 136,926
City auditor 483,582 802,420 287,554 514,866
Administrative services 8,347,597 8,692,283 7,856,301 835,982 Human resources 2,352,349 3,720,342 2,204,210 1,516,132 Housing 10,051,116 4,881,236 2,547,334 2,333,902
Non-departmental 1,556,807 1,846,104 1,609,002 237,102
Total general government 28,833,902 26,252,642 19,999,475 6,253,167 Budget
City of Stockton
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2022
Budgetary Comparison Schedule - General Fund
112
ATTACHMENT A 1718
Variance with
Original Final Actual Final Budget
EXPENDITURES (CONTINUED):

Public safety:

Police 145,869,718 146,858,341 132,234,605 14,623,736
Fire 54,464,468 55,763,440 52,264,392 3,499,048
Total public safety 200,334,186 202,621,781 184,498,997 18,122,784 Public works 17,498,458 18,931,959 17,336,248 1,595,711 Library 13,416,280 13,699,468 11,515,728 2,183,740
Parks and recreation 4,941,020 13,269,176 10,292,742 2,976,434 Capital outlay 451,049 1,274,091 468,869 805,222
Debt service:

Principal retirement - - 29,088 (29,088)
Interest and fiscal charges - - 16,003 (16,003)
Total expenditures 265,474,895 276,049,117 244,157,150 31,891,967

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (9,116,810) 2,022,233 59,812,544 68,929,354 OTHER FINANCING SOURCES (USES):

Transfers out (11,036,175) (46,117,660) (12,235,569) 33,882,091 Proceed from issuance of debt - - 162,530 162,530
Proceed from sale of capital assets 22,000 22,000 16,769 (5,231) Total other financing sources (uses) (11,014,175) (46,095,660) (12,056,270) 34,039,390

NET CHANGE IN FUND BALANCE
(GAAP BASIS) $ (55,212,470) (8,991,942) $ 47,756,274 102,968,744 $ BASIS ADJUSTMENT:

Encumbrances (included in Final Budget above)* (7,319,267) NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 40,437,007 FUND BALANCE, BEGINNING OF YEAR 130,857,119
FUND BALANCE, END OF YEAR $ 171,294,126
* Adjusted to Budgetary Basis.

The notes 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, 2022
Budgetary Comparison Schedule - General Fund (Continued) 113
ATTACHMENT A 1719
Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies 5,100,181 $ 12,572,402 $ 1,942,469 $ (10,629,933) $ Other governmental 1,994,047 1,994,047 1,994,047 -
Charges for services - - 2,625 2,625
Use of money and property 235,000 235,000 1,249,320 1,014,320 Investment income:

Interest income (loss) - - (24,696) (24,696)
Total revenues 7,329,228 14,801,449 5,163,765 (9,637,684) EXPENDITURES:

General government 7,114,647 16,368,740 2,504,918 13,863,822 Capital outlay - - - -
Debt service:

Principal retirement 1,750,000 1,750,000 1,750,000 -
Interest and fiscal charges 135,771 135,771 135,771 -
Total expenditures 9,000,418 18,254,511 4,390,689 13,863,822

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (GAAP BASIS) (3,453,062) (1,671,190) 773,076 4,226,138 OTHER FINANCING USES:

Transfers out (398,809) (398,809) (398,809) -
Total other financing uses (398,809) (398,809) (398,809) - NET CHANGE IN FUND BALANCE (GAAP BASIS) $ (3,851,871) (2,069,999) $ 374,267 4,226,138 $ BASIS ADJUSTMENT:

Encumbrances (1,410,888)
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) (1,036,621) FUND BALANCE, BEGINNING OF YEAR 86,006,591
FUND BALANCE, END OF YEAR $ 84,969,970
The notes to the required supplementary information is an integral part of this schedule.

Budget
For the Year Ended June 30, 2022
City of Stockton
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - CDBG, NSP Housing Grants Special Revenue Fund 114
ATTACHMENT A 1720
Variance with
Original Final Actual Final Budget
REVENUES:

Intergovernmental:

Federal grants and subsidies 78,344,451 $ 125,461,731 $ 72,680,699 $ (52,781,032) $ Other governmental 5,335,379 21,155,967 16,996,148 (4,159,819) Investment income:

Interest income (loss) - - (575,956) (575,956)
Miscellaneous - 19,653 19,653 -
Total revenues 83,679,830 146,637,351 89,120,544 (57,516,807) EXPENDITURES:

Current:

General government 83,285,802 117,953,933 41,098,830 76,855,103 Public safety 101,838 8,220,125 4,958,550 3,261,575
Public works - 502,148 76,737 425,411
Library - 2,426,216 575,571 1,850,645
Parks and recreation 30,000 482,402 30,732 451,670
Capital outlay - 18,140,822 6,675,212 11,465,610
Total expenditures 83,417,640 147,725,646 53,415,632 94,310,014

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) (1,088,295) 262,190 35,704,912 36,793,207 OTHER FINANCING USES:

Transfers out - (2,000,000) (1,500,000) 500,000
Total other financing uses - (2,000,000) (1,500,000) 500,000 NET CHANGE IN FUND BALANCE (GAAP BASIS) $ (3,088,295) 262,190 $ 34,204,912 37,293,207 $ BASIS ADJUSTMENT:

Encumbrances (14,262,063)
NET CHANGE IN FUND BALANCE (BUDGETARY BASIS) 19,942,849 FUND BALANCE, BEGINNING OF YEAR 2,597,910
FUND BALANCE, END OF YEAR $ 22,540,759
The notes 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, 2022
Budgetary Comparison Schedule - Special Grants Special Revenue Fund 115
ATTACHMENT A 1721
Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 9,440,824 $ 9,145,587 $ 9,240,648 $ 10,871,947 $ 11,500,131 $ Interest 46,152,921 47,148,768 48,179,529 48,291,460 48,873,856 Changes of benefit terms - - - - -
Changes of assumptions - (11,281,319) - 39,356,599 (19,696,405) Differences between expected
and actual experience - (10,000,256) (8,961,502) (17,662,863) 3,486,532 Benefit payments, including
refunds of employee contributions (32,763,729) (33,662,380) (34,150,397) (34,494,172) (35,750,319) Net change in total pension liability 1,350,400 22,830,016 14,308,278 46,362,971 8,413,795 Total pension liability - beginning 649,863,743 627,033,727 651,214,143 665,522,421 711,885,392 Total pension liability - ending (a) $ 651,214,143 649,863,743 $ 665,522,421 $ 711,885,392 $ 720,299,187 $ Pension fiduciary net position
Contributions - employer 9,402,881 $ 10,783,518 $ 13,879,482 $ 13,189,681 $ 15,252,226 $ Contributions - employee 3,761,959 3,802,226 3,971,944 4,386,770 4,729,377 Net investment income 79,512,728 11,522,882 2,491,249 56,250,959 45,626,430 Benefit payments, including
refunds of employee contributions (32,763,729) (33,662,380) (34,150,397) (34,494,172) (35,750,319) Net plan to plan resource movement - (13,377) 933 - 4,111 Administrative expense - (599,978) (315,359) (743,130) (844,458) Other miscellaneous income/ (expense)2 - - - - (1,603,640) Net change in plan fiduciary net position (8,167,109) 59,913,839 (14,122,148) 38,590,108 27,413,727 Plan fiduciary net position - beginning
3 525,617,589 465,703,750 517,450,480 503,328,332 541,918,440 Plan fiduciary net position - ending (b) $ 517,450,480 525,617,589 $ 503,328,332 $ 541,918,440 $ 569,332,167 $ Plan net pension liability - ending (a) - (b) $ 133,763,663 124,246,154 $ 162,194,089 $ 169,966,952 $ 150,967,020 $ Plan fiduciary net position as a percentage
of the total pension liability 80.88% 79.46% 75.63% 76.12% 79.04% Covered payroll
4 $ 53,997,677 52,603,907 $ 56,400,439 $ 61,357,565 $ 67,079,626 $ Plan net pension liability as a percentage
of covered payroll 236.19% 247.72% 287.58% 277.01% 225.06% Notes to Schedule:
2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 3 Includes any beginning of year adjustment.
4 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal year ended June 30, 2014 -17.

Changes of Assumptions: None in 2019 -2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Last Ten Fiscal Years
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
116
ATTACHMENT A 1722
Measurement period 2018-19 2019-2020 2020-2021
Total pension liability
Service cost $ 11,446,572 $ 11,098,178 $ 11,194,084
Interest 50,718,177 51,801,795 53,055,641
Changes of benefit terms - - -
Changes of assumptions - - -
Differences between expected
and actual experience 2,061,288 (8,567,800) (5,435,616) Benefit payments, including
refunds of employee contributions (37,477,251) (39,057,265) (40,894,732) Net change in total pension liability 26,748,786 15,274,908 17,919,377 Total pension liability - beginning 720,299,187 747,047,973 762,322,881 Total pension liability - ending (a) $ 762,322,881 747,047,973 $ 780,242,258 $ Pension fiduciary net position
Contributions - employer 17,112,542 $ 19,204,043 $ 20,363,651 $ Contributions - employee 4,540,503 4,721,760 4,939,316
Net investment income 37,027,715 29,185,528 135,230,666 Benefit payments, including
refunds of employee contributions (37,477,251) (39,057,265) (40,894,732) Net plan to plan resource movement - - -
Administrative expense (406,288) (831,939) (602,713)
Other miscellaneous income/ (expense)2 - 1,325 -
Net change in plan fiduciary net position 13,222,127 20,798,546 119,036,188 Plan fiduciary net position - beginning
3 590,130,713 569,332,167 603,352,840
Plan fiduciary net position - ending (b) $ 603,352,840 590,130,713 $ 722,389,028 $ Plan net pension liability - ending (a) - (b) $ 158,970,041 156,917,260 $ 57,853,230 $ Plan fiduciary net position as a percentage
of the total pension liability 79.00% 79.15% 92.59%
Covered payroll
4 $ 67,099,018 67,851,642 $ 69,099,285 $
Plan net pension liability as a percentage
of covered payroll 231.27% 236.92% 83.72%
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan (Continued) City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
117
ATTACHMENT A 1723
Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 13,907,523 $ 13,593,233 $ 13,548,998 $ 15,401,471 $ 17,684,602 $ Interest 65,730,714 67,693,599 69,765,169 71,053,021 75,078,142 Changes of benefit terms - - - - -
Changes of assumptions - (16,908,140) - 59,494,381 (3,852,172) Differences between expected
and actual experience - (5,410,590) (3,570,311) (9,538,805) 26,895,156 Benefit payments, including
refunds of employee contributions (47,761,534) (49,614,935) (51,615,173) (53,205,686) (55,481,650) Net change in total pension liability 9,353,167 31,876,703 28,128,683 83,204,382 60,324,078 Total pension liability - beginning 925,213,230 893,336,527 934,566,397 962,695,080 1,045,899,462 Total pension liability - ending (a) $ 934,566,397 925,213,230 $ 962,695,080 $ 1,045,899,462 $ 1,106,223,540 $ Pension fiduciary net position
Contributions - employer 13,818,051 $ 17,178,961 $ 20,338,253 $ 23,342,334 $ 26,124,666 $ Contributions - employee 6,449,394 5,896,729 5,940,342 6,617,527 6,942,272 Net investment income 105,163,288 15,155,169 3,348,803 73,783,913 59,476,319 Benefit payments, including
refunds of employee contributions (47,761,534) (49,614,935) (51,615,173) (53,205,686) (55,481,650) Net plan to plan resource movement - 3,305 - - (7,168)
Administrative expense - (771,300) (416,243) (975,302) (1,106,599) Other miscellaneous income/ (expense)2 - - - - (2,101,449) Net change in plan fiduciary net position (12,152,071) 77,669,199 (22,404,018) 49,562,786 33,846,391 Plan fiduciary net position - beginning
3 695,136,418 617,467,219 682,984,347 660,580,329 710,143,115 Plan fiduciary net position - ending (b) $ 682,984,347 695,136,418 $ 660,580,329 $ 710,143,115 $ 743,989,506 $ Plan net pension liability - ending (a) - (b) $ 251,582,050 230,076,812 $ 302,114,751 $ 335,756,347 $ 362,234,034 $ Plan fiduciary net position as a percentage
of the total pension liability 75.13% 73.08% 68.62% 67.90% 67.25% Covered payroll
4 $ 46,710,538 45,422,701 $ 47,115,477 $ 48,429,252 $ 56,947,904 $ Plan net pension liability as a percentage
of covered payroll 506.52% 538.60% 641.22% 693.29% 636.08% Notes to Schedule:

Changes of Assumptions: None in 2019 -2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Safety Plan 1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 3 Includes any beginning of year adjustment.
4 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal year ended June 30, 2014 -17.

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Last Ten Fiscal Years
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 118
ATTACHMENT A 1724
Measurement period 2018-19 2019-2020 2020-2021
Total pension liability
Service cost $ 18,340,749 $ 18,438,776 $ 17,442,651
Interest 77,850,318 79,970,381 82,106,386
Changes of benefit terms - - -
Changes of assumptions - - -
Differences between expected
and actual experience 2,178,151 (7,219,787) (5,649,159) Benefit payments, including
refunds of employee contributions (57,512,870) (61,225,237) (63,550,272) Net change in total pension liability 40,856,348 29,964,133 30,349,606 Total pension liability - beginning 1,106,223,540 1,147,079,888 1,177,044,021 Total pension liability - ending (a) $ 1,177,044,021 1,147,079,888 $ 1,207,393,627 $ Pension fiduciary net position
Contributions - employer 29,781,351 $ 33,596,802 $ 37,208,895 $ Contributions - employee 7,139,569 7,347,966 7,775,415
Net investment income 48,529,461 38,307,390 177,671,066 Benefit payments, including
refunds of employee contributions (57,512,870) (61,225,237) (63,550,272) Net plan to plan resource movement - - -
Administrative expense (530,927) (1,087,482) (787,501)
Other miscellaneous income/ (expense)2 - 1,732 -
Net change in plan fiduciary net position 16,939,439 27,408,316 158,317,603 Plan fiduciary net position - beginning
3 771,397,822 743,989,506 788,337,261
Plan fiduciary net position - ending (b) $ 788,337,261 771,397,822 $ 946,654,864 $ Plan net pension liability - ending (a) - (b) $ 388,706,760 375,682,066 $ 260,738,763 $ Plan fiduciary net position as a percentage
of the total pension liability 67.25% 66.98% 78.40%
Covered payroll
4 $ 60,894,239 59,708,789 $ 58,297,630 $
Plan net pension liability as a percentage
of covered payroll 629.19% 638.33% 447.25%
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan (Continued) City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) 119
ATTACHMENT A 1725
Measurement period 2014-151 2015-16 2016-17 2017-18 2018-19 Total pension liability
Service cost 145,882 $ 150,623 $ 134,056 $ 138,078 $ 151,504 $ Interest 650,386 680,023 701,117 730,559 706,545
Changes of benefit terms - - - - -
Changes of assumptions - - - - 605,028
Economic/demographic gains or losses - - (110,133) - (156,665) Benefit payments, including
refunds of employee contributions (358,380) (397,530) (407,870) (429,654) (467,860) Net change in total pension liability 433,116 437,888 317,170 438,983 838,552 Total pension liability - beginning 9,759,398 9,321,510 10,192,514 10,509,684 10,948,667 Total pension liability - ending (a) $ 10,192,514 9,759,398 $ 10,509,684 $ 10,948,667 $ 11,787,219 $ Pension fiduciary net position
Contributions - employer 751,157 $ 705,192 $ 528,894 $ 941,620 $ 753,296 $ Contributions - employee - - - - -
Net investment income 124,454 8,851 596,724 409,596 482,222 Benefit payments, including
refunds of employee contributions (358,380) (397,530) (407,870) (429,654) (467,860) Net plan to plan resource movement - - - - -
Administrative expense (966) (43,490) (13,097) (13,992) (14,506) Net change in plan fiduciary net position 273,023 516,265 704,651 907,570 753,152 Plan fiduciary net position - beginning 5,574,691 5,058,426 5,847,714 6,552,365 7,459,935 Plan fiduciary net position - ending (b) $ 5,847,714 5,574,691 $ 6,552,365 $ 7,459,935 $ 8,213,087 $ Plan net pension liability - ending (a) - (b) $ 4,344,800 4,184,707 $ 3,957,319 $ 3,488,732 $ 3,574,132 $ Plan fiduciary net position as a percentage
of the total pension liability 57.12% 57.37% 62.35% 68.14% 69.68% Covered payroll
4 $ 3,454,139 3,610,315 $ 3,327,608 $ 3,427,436 $ 3,446,204 $ Plan net pension liability as a percentage
of covered payroll 115.91% 125.79% 118.92% 101.79% 103.71% 1 Historical information is presented only for measurement periods for periods after the PARS plan set up in 2014-15. Additional years of information will be displayed as it becomes available.

For the Year Ended June 30, 2022
PARS Enhancement Plan
Last Ten Fiscal Years
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 120
ATTACHMENT A 1726
Measurement period 2019-2020 2020-2021 2021-2022
Total pension liability
Service cost $ 155,670 $ 132,117 $ 135,750
Interest 759,727 781,943 809,517
Changes of benefit terms - - -
Changes of assumptions - - -
Economic/demographic gains or losses 120,626 - -
Benefit payments, including
refunds of employee contributions (517,711) (583,450) (645,746) Net change in total pension liability 397,686 451,236 299,521 Total pension liability - beginning 11,787,219 12,184,905 12,636,141 Total pension liability - ending (a) $ 12,636,141 12,184,905 $ 12,935,662 $ Pension fiduciary net position
Contributions - employer 803,170 $ 602,378 $ 1,055,182 $ Contributions - employee - - -
Net investment income 272,545 1,923,213 (1,452,185)
Benefit payments, including
refunds of employee contributions (517,711) (583,450) (645,746) Net plan to plan resource movement - - -
Administrative expense (15,254) (16,676) (17,644)
Net change in plan fiduciary net position 1,925,465 542,750 (1,060,393) Plan fiduciary net position - beginning
3 8,755,837 8,213,087 10,681,302
Plan fiduciary net position - ending (b) $ 10,681,302 8,755,837 $ 9,620,909 $ Plan net pension liability - ending (a) - (b) $ 1,954,839 3,429,068 $ 3,314,753 $ Plan fiduciary net position as a percentage
of the total pension liability 71.86% 84.53% 74.38%
Covered payroll
4 $ 2,966,110 2,784,812 $ 2,403,153 $
Plan net pension liability as a percentage
of covered payroll 123.13% 65.91% 137.93%
For the Year Ended June 30, 2022
Last Ten Fiscal Years
PARS Enhancement Plan (Continued)
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) 121
ATTACHMENT A 1727
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 9,402,881 $ 10,783,518 $ 12,545,482 $ 13,189,681 $ 15,252,226 $ Contributions in relation to
the actuarially determined contribution2 (9,402,881) (10,783,518) (13,879,482) (13,189,681) (15,252,226) Contribution deficiency (excess) $ - $ (1,334,000) - $ $ - $ - Covered payroll3 $ 53,997,677 52,603,907 $ 56,400,439 $ 61,357,565 $ 67,079,626 $ Contributions as a percentage of
covered payroll3 17.87% 19.97% 24.61% 21.50% 22.74%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

Inflation 2.50%
Salary Increases Varies by entry age and service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

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

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% of Scale MP-2016 published by the Society of Actuaries.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.

For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

Last Ten Fiscal Years
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
122
ATTACHMENT A 1728
2018-19 2019-2020 2020-2021 2021-2022
Actuarially determined contribution $ 17,112,542 $ 19,204,043 $ 20,363,651 $ 20,497,511 Contributions in relation to
the actuarially determined contribution2 (17,112,542) (19,204,043) (20,363,651) (20,497,511) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll3 $ 67,099,018 67,851,642 $ 69,099,285 $ 70,999,515 $ Contributions as a percentage of
covered payroll3 25.22% 28.62% 29.47% 28.87%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

Inflation 2.50%
Salary Increases Varies by entry age and service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

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

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% of Scale MP-2016 published by the Society of Actuaries.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan (Continued) The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
123
ATTACHMENT A 1729
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 13,818,051 $ 17,178,961 $ 20,338,253 $ 23,342,334 $ 26,124,666 $ Contributions in relation to
the actuarially determined contribution2 (13,818,051) (17,178,961) (20,338,253) (23,342,334) (26,124,666) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll3 $ 46,710,538 45,422,701 $ 47,115,477 $ 48,429,252 $ 56,947,904 $ Contributions as a percentage of
covered payroll3 30.42% 36.78% 43.17% 48.20% 45.87%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

Inflation 2.50%
Salary Increases Varies by entry age and service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement age
Mortality
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
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% of Scale MP-2016 published by the Society of Actuaries.

For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Safety Plan The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Last Ten Fiscal Years
1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
124
ATTACHMENT A 1730
2018-19 2019-2020 2020-2021 2021-2022
Actuarially determined contribution 29,781,351 $ 33,596,802 $ 37,208,895 $ 39,176,629 $ Contributions in relation to
the actuarially determined contribution2 (29,781,351) (33,596,802) (37,208,895) (39,176,629) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll3 $ 60,894,239 59,708,789 $ 58,297,630 $ 59,900,815 $ Contributions as a percentage of
covered payroll3 49.88% 55.17% 63.83% 65.40%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

Inflation 2.50%
Salary Increases Varies by entry age and service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement age
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% of Scale MP-2016 published by the Society of Actuaries.

City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

California Public Employees' Retirement System ("CalPERS") - Safety Plan (Continued) 1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
125
ATTACHMENT A 1731
2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 766,478 $ 700,451 $ 705,192 $ 705,192 $ 753,296 $ Contributions in relation to
the actuarially determined contribution2 (1,134,701) (751,157) (705,192) (528,894) (941,620) Contribution deficiency (excess) $ (368,223) $ (50,706) $ - $ 176,298 $ (188,324) Covered payroll3 $ 3,610,315 3,496,673 $ 3,454,139 $ 3,327,608 $ 3,427,436 $ Contributions as a percentage
of covered payroll3 32.45% 20.81% 20.42% 15.89% 27.47%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level dollar, closed, 7.67 years Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

Inflation 2.50%
Salary Increases
Payroll Growth 2.75%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Withdrawal/Disability
1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2022 funding valuation report.

Consistent with the rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Consistent with the rates used to value Miscellaneous Public Agency CalPERS Pension Plans for an employee with an entry age of 30.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
PARS Enhancement Plan
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
126
ATTACHMENT A 1732
2018-19 2019-2020 2020-2021 2021-2022
Actuarially determined contribution 753,296 $ 803,170 $ 803,170 $ 854,389 $ Contributions in relation to
the actuarially determined contribution2 (803,170) (753,296) (602,378) (1,055,182) Contribution deficiency (excess) - $ - $ 200,792 $ (200,793) $ Covered payroll3 $ 2,784,812 3,446,204 $ 2,966,110 $ 2,403,153 $ Contributions as a percentage
of covered payroll3 21.86% 28.84% 20.31% 43.91%
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level dollar, closed, 7.67 years Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

Inflation 2.50%
Salary Increases
Payroll Growth 2.75%
Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Withdrawal/Disability
1 Historical information is presented only for measurement periods for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2022 funding valuation report.

Consistent with the rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.

Consistent with the rates used to value Miscellaneous Public Agency CalPERS Pension Plans for an employee with an entry age of 30.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
PARS Enhancement Plan (Continued)
City of Stockton
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
127
ATTACHMENT A 1733
This page intentionally left blank.
128
ATTACHMENT A 1734

NONMAJOR GOVERNMENTAL FUNDS
ATTACHMENT A 1735
ATTACHMENT A 1736

SPECIAL REVENUE FUNDS
The City’s nonmajor 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.

Measure W is a one-quarter (1/4) cent transaction and use sales tax which was approved by 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.

NONMAJOR 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 for single family, down-payment assistance and single family rehabilitation from State funding sources.

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.
129
ATTACHMENT A 1737

SPECIAL REVENUE FUNDS (CONTINUED)
Development Services Fund
Other Special Revenue Fund
Transportation Development Act Fund

CAPITAL PROJECT FUNDS
The City’s nonmajor governmental capital project funds include:

Public Facilities Impact Fees Capital Projects Fund

DEBT SERVICE FUNDS
The City’s nonmajor 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.

NONMAJOR 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 revenues collected are used 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. 130
ATTACHMENT A 1738
State Solid Measure K Measure M
Housing Waste & Gas Streets Strong
Grants Recycling Tax Sales Tax Communities
ASSETS
Cash and investments $ 7,794,630 $ 5,754,658 $ 11,200,594 $ 19,806,603 $ 30,370,360 Receivables, net:

Interest 12,571 26,783 34,995 52,867 78,893
Accounts and other 589 269,983 - - -
Lease - - - - -
Advance deposits - 20,836 - 21,883 18,097
Due from other governments, net - 1,728,947 - 1,892,198 2,180,528 Prepaid items - - - - -
Loans to Successor Agency, net 1,106,580 - - - -
Loans to property owners, net 69,051,489 - - - -
Total assets $ 77,965,859 $ 6,051,424 $ 12,985,372 $ 21,773,551 $ 32,647,878

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 411,054 $ 6,173 $ 179,074 $ 473,491 $ 352,114 Accrued payroll and benefits 66 46,451 168,767 4,313 187,801 Due to other governments - - - 579,618 -
Deposits and other liabilities - 3,915 - - -
Total liabilities 411,120 56,539 347,841 477,804 1,119,533 Deferred Inflows of Resources:

Unavailable revenue - Other - - 263,452 - -
Lease - - - - -
Total deferred inflows of resource - - 263,452 - -
Fund Balances:

Nonspendable - 20,836 - 21,883 18,097
Restricted 77,554,739 5,994,885 12,616,695 21,010,412 31,510,248 Total fund balances 77,554,739 5,994,885 12,637,531 21,032,295 31,528,345 Total liabilities, deferred inflows of
resources and fund balances $ 6,051,424 77,965,859 $ 12,985,372 $ 21,773,551 $ 32,647,878 $ (Continued)
Special Revenue Funds
City of Stockton
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
131
ATTACHMENT A 1739
Measure W Other Transportation
Public Special Development Special Development
Safety Tax Assessments Services Revenue Act
ASSETS
Cash and investments $ 8,867,883 $ 18,694,115 $ 33,624,938 $ 5,596,039 $ 935,777 Receivables, net:

Interest 20,176 49,430 80,079 7,432 -
Accounts and other 477,719 - 754,273 554,558 -
Lease - - 13,979 - -
Advance deposits - 63,041 - 1,530 -
Due from other governments, net 2,185,781 65,000 - 13,354 405,997 Prepaid items - 25,315 - - -
Loans to Successor Agency, net - - - - -
Loans to property owners, net - - - - -
Total assets $ 11,073,840 $ 19,221,264 $ 34,612,646 $ 6,186,892 $ 1,341,774

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 95,016 $ 692,862 $ 510,824 $ 277,133 $ - Accrued payroll and benefits 425,528 16,181 395,359 34,054 - Due to other governments 579,618 - - - -
Deposits and other liabilities - 831,778 - 179,589 -
Total liabilities 1,100,162 709,043 1,737,961 490,776 - Deferred Inflows of Resources:

Unavailable revenue - Other - 175,223 - 1,931 -
Lease - - - 13,964 -
Total deferred inflows of resource - 175,223 - 15,895 - Fund Balances:

Nonspendable - 88,356 - 1,530 -
Restricted 9,973,678 18,512,221 32,611,106 5,678,691 1,341,774 Total fund balances 9,973,678 18,512,221 32,699,462 5,680,221 1,341,774 Total liabilities, deferred inflows of
resources and fund balances $ 19,221,264 11,073,840 $ 34,612,646 $ 6,186,892 $ 1,341,774 $ (Continued)
City of Stockton
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
132
ATTACHMENT A 1740
Capital Debt Permanent
Projects Fund Service Fund Fund
Public Stockton Public
Facilities Financing
Impact Fees Authority Miscellaneous Totals
ASSETS
Cash and investments $ 69,024,564 $ 1,920,096 $ 381,793 $ 213,972,050 Receivables, net:

Interest 172,191 (9,944) 548 526,021
Accounts and other 637,284 - 2,694,406 -
Lease - - 13,979 -
Advance deposits - - 125,387 -
Due from other governments, net - - 8,471,805 -
Prepaid items - - 25,315 -
Loans to Successor Agency, net - - 1,106,580 -
Loans to property owners, net - - 69,051,489 -
Total assets $ 69,834,039 $ 1,910,152 $ 382,341 $ 295,987,032

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 1,978,598 $ (57,461) $ 4,918,878 - $ Accrued payroll and benefits 7,557 13,736 1,299,813 -
Due to other governments 765,495 - 1,924,731 -
Deposits and other liabilities - - 1,015,282 -
Total liabilities 2,751,650 (43,725) 9,158,704 -
Deferred Inflows of Resources:

Unavailable revenue - Other 696,155 - 1,136,761 -
Lease - - 13,964 -
Total deferred inflows of resource 696,155 - - 1,150,725 Fund Balances:

Nonspendable - - 150,702 -
Restricted 66,386,234 1,953,877 382,341 285,526,901
Total fund balances 66,386,234 1,953,877 382,341 285,677,603 Total liabilities, deferred inflows of
resources and fund balances $ 1,910,152 69,834,039 $ 382,341 $ 295,987,032 $ (Concluded)
City of Stockton
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
133
ATTACHMENT A 1741
State Solid Measure K Measure M
Housing Waste & Gas Streets Strong
Grants Recycling Tax Sales Tax Communities
REVENUES:

Taxes:

Sales - levied by City $ - $ - $ 7,913,790 - $ $ 14,799,784 Franchise fees 2,006,664 - - - -
Business license - - - - -
Licenses and permits - - - - -
Intergovernmental:

Federal grants and subsidies - - - - -
Sales and use tax - levied by state - - - - -
Other governmental 1,655,933 - 13,989,979 758,687 -
Charges for services - - - - -
Fines and forfeitures - - - - -
Use of money and property 310,871 - - - -
Investment income:

Interest income (loss) (146,792) (96,211) (412,635) (684,645) (961,746) Refunds and reimbursements - 75,301 - 2,263 -
Miscellaneous 26,577 16,839 - - -
190,656 3,583,225 13,652,645 7,990,095 13,838,038
EXPENDITURES:

Current:

General government 29,314 - 4,310 - -
Public safety - - - - -
Public works - 2,111,314 6,641,566 3,694,888 -
Library - - - 2,553,949 -
Parks and recreation - - - 4,228,315 -
Capital outlay - 1,403,038 - 781,027 -
Debt service:

Principal retirement - - - - -
Interest and fiscal charges - - - - -
Total expenditures 29,314 2,111,314 8,048,914 4,475,915 6,782,264

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 161,342 1,471,911 5,603,731 3,514,180 7,055,774 OTHER FINANCING SOURCES (USES):

Transfers in 997,023 - - - -
Transfers out - (3,519,869) - (2,158,093) (3,165,000)
Total other financing sources (uses) 997,023 (3,519,869) - (2,158,093) (3,165,000) NET CHANGES IN FUND BALANCES 1,158,365 1,471,911 2,083,862 1,356,087 3,890,774 FUND BALANCES:

Beginning of year 76,396,374 4,522,974 10,553,669 19,676,208 27,637,571 End of year $ 77,554,739 $ 5,994,885 $ 12,637,531 $ 21,032,295 $ 31,528,345 (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, 2022
134
ATTACHMENT A 1742
Measure W Other Transportation
Public Special Development Special Development
Safety Tax Assessments Services Revenue Act
REVENUES:

Taxes:

Sales - levied by City $ 14,824,975 $ - $ - $ - $ -
Franchise fees - - - - -
Business license 1,881,035 - - - -
Licenses and permits - 8,563,121 - 54,561 -
Intergovernmental:

Federal grants and subsidies - - - 247 -
Sales and use tax - levied by state - - - - -
Other governmental - - 4,766,401 - 405,997
Charges for services 4,176,900 - 13,938,308 70,424 -
Fines and forfeitures - 124,671 - - -
Use of money and property - - 8,171 14,014 -
Investment income:

Interest income (loss) (223,214) (626,937) (972,744) (109,849) - Refunds and reimbursements - - - - -
Miscellaneous - 15,688 - 860,607 -
14,601,761 5,430,998 21,677,215 5,656,405 405,997
EXPENDITURES:

Current:

General government 1,881,283 - 10,683,746 12,950 -
Public safety 11,947,172 3,018,414 - 1,683,794 -
Public works - 3,776,846 467,448 - -
Library - - 13,200 - -
Parks and recreation - - - - -
Capital outlay 877,809 - 3,970 68,916 -
Debt service:

Principal retirement - - - - -
Interest and fiscal charges - - - - -
Total expenditures 12,824,981 5,658,129 13,706,130 2,246,308 -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,776,780 (227,131) 7,971,085 3,410,097 405,997 OTHER FINANCING SOURCES (USES):

Transfers in - 800,000 - - -
Transfers out - - (234,575) - -
Total other financing sources (uses) - 800,000 - (234,575) - NET CHANGES IN FUND BALANCES 1,776,780 (227,131) 8,771,085 3,175,522 405,997 FUND BALANCES:

Beginning of year 8,196,898 18,739,352 23,928,377 2,504,699 935,777 End of year $ 9,973,678 $ 18,512,221 $ 32,699,462 $ 5,680,221 $ 1,341,774 (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, 2022
135
ATTACHMENT A 1743
Capital Projects Debt Service Permanent
Public Stockton Public
Facilities Financing
Impact Fees Authority Miscellaneous Totals
REVENUES:

Taxes:

Sales - levied by City - $ - $ - $ 37,538,549 $
Franchise fees - - - 2,006,664
Business license - - - 1,881,035
Licenses and permits - - - 8,617,682
Intergovernmental:

Federal grants and subsidies - - - 247
Sales and use tax - levied by state - - - -
Other governmental - - - 21,576,997
Charges for services 11,328,007 - - 29,513,639
Fines and forfeitures - - - 124,671
Use of money and property 71,411 - - 404,467
Investment income:

Interest income (loss) (2,148,360) 121,863 (12,747) (6,274,017) Refunds and reimbursements 253,000 - - 330,564
Miscellaneous - 1,618,282 - 2,537,993
1,740,145 9,504,058 (12,747) 98,258,491
EXPENDITURES:

Current:

General government 449,959 165,210 75 13,226,847
Public safety - - - 16,649,380
Public works 157,951 - - 16,850,013
Library - - - 2,567,149
Parks and recreation - - - 4,228,315
Capital outlay 2,007,695 - 5,142,455 -
Debt service:

Principal retirement 164,013 - 164,013 -
Interest and fiscal charges 7,245,358 - 7,245,358 -
Total expenditures 2,615,605 7,574,581 66,073,530 75

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 6,888,453 (5,834,436) (12,822) 32,184,961 OTHER FINANCING SOURCES (USES):

Transfers in 5,816,875 - 7,613,898 -
Transfers out (3,670,130) - (12,747,667) -
Total other financing sources (uses) (3,670,130) 5,816,875 (5,133,769) - NET CHANGES IN FUND BALANCES 3,218,323 (17,561) (12,822) 27,051,192 FUND BALANCES:

Beginning of year 63,167,911 1,971,438 395,163 258,626,411 End of year $ 66,386,234 $ 1,953,877 $ 382,341 $ 285,677,603 (Concluded)
City of Stockton
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
136
ATTACHMENT A 1744

INTERNAL SERVICE FUNDS
ATTACHMENT A 1745
ATTACHMENT A 1746
The City’s internal service funds include:

General Liability Insurance Fund
Workers’ Compensation Insurance Fund
Employee Health Insurance Fund
Retirement Benefits Fund
Other Benefits and Insurance Fund
Vehicle Fleet Equipment Fund
Computer and Radio Equipment Fund
Other Equipment Fund

INTERNAL SERVICE FUNDS
Internal service funds are a type of proprietary fund used to report any activity that provides goods and services on a costreimbursement 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.

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, radio equipment and 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 office, 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, unemployment, 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.
137
ATTACHMENT A 1747
General Workers' Employee Other
Liability Compensation Health Retirement Benefits &
Insurance Insurance Insurance Benefits Insurance
ASSETS
Current assets:

Cash and investments $ 23,339,033 $ 42,177,569 $ 5,583,460 $ 4,810,390 $ 870,467 Receivables, net:

Interest 48,977 172,146 16,221 163,005 2,786
Accounts and other receivables 340,065 - 395 - -
Inventories - - - - -
Deposits and advances - 446 136,370 - -
Prepaid items - 705,708 - - -
Loans to other funds - short-term 1,097,322 - - - -
Total current assets 23,728,075 43,447,483 6,442,154 4,973,395 873,253 Noncurrent assets:

Restricted assets:

Cash and investments - - 69,968,331 - -
Loans to other funds - long-term 7,733,072 - - - -
Capital assets, net:

Nondepreciable - - - - -
Depreciable, net - - - - -
Total noncurrent assets 7,733,072 - 69,968,331 - -
Total assets 23,728,075 51,180,555 6,442,154 74,941,726 873,253

LIABILITIES
Current liabilities:

Accounts payable 16,250 60,716 725,013 1,255,446 36,703 Accrued payroll 48,134 31,857 38,103 3,886 -
Deposits and other liabilities 49,104 - - - -
Accrued interest - - - - -
Compensated absences - due in one year 31,649 2,751 4,077 - - Lease payable - due in one year - - - - -
Claims payable, due in one year 3,568,791 9,014,000 396,000 - - Loans from other funds- current - - - - -
Total current liabilities 3,664,824 9,158,428 1,163,193 1,259,332 36,703 Noncurrent liabilities:

Compensated absences - due in more than one year 10,199 - - - - Lease payable - due in more than one year - - - - -
Claims payable, due in more than one year 11,935,442 40,486,000 - - - Loans from other funds- due in more than one year - - - - - Total noncurrent liabilities 11,945,641 40,486,000 - - - Total liabilities 15,610,465 49,644,428 1,163,193 1,259,332 36,703

NET POSITION
Net investment in capital assets - - - - -
Restricted for pensions - - 69,968,331 - -
Unrestricted 8,117,610 1,536,127 5,278,961 3,714,063 836,550 Total net position $ 1,536,127 8,117,610 $ 5,278,961 $ 73,682,394 $ 836,550 $ City of Stockton
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
138
ATTACHMENT A 1748
Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total
ASSETS
Current assets:

Cash and investments 16,398,192 $ 47,024,435 $ 1,506,349 $ 141,709,895 $ Receivables, net:

Interest 40,793 112,991 3,498 560,417
Accounts and other receivables - - - 340,460
Inventories - 179,726 - 179,726
Deposits and advances 283,055 138,125 - 557,996
Prepaid items 679,409 1,501,667 44,998 2,931,782
Loans to other funds - short-term - 495,600 - 1,592,922 Total current assets 49,452,544 17,401,449 1,554,845 147,873,198 Noncurrent assets:

Restricted assets:

Cash and investments - - - 69,968,331
Loans to other funds - long-term - - - 7,733,072
Capital assets, net:

Nondepreciable 6,322,767 15,774,365 - 22,097,132
Depreciable, net 16,049,598 5,359,829 213,765 21,623,192 Total noncurrent assets 21,134,194 22,372,365 213,765 121,421,727 Total assets 70,586,738 39,773,814 1,768,610 269,294,925

LIABILITIES
Current liabilities:

Accounts payable 535,580 527,058 58,476 3,215,242
Accrued payroll 113,435 246,124 7,565 489,104
Deposits and other liabilities - - - 49,104
Accrued interest 14,975 - 91 15,066
Compensated absences - due in one year 64,639 154,524 5,726 263,366 Lease payable - due in one year - - 50,116 50,116
Claims payable, due in one year - - 12,978,791 -
Loans from other funds- current 454,217 - 454,217 -
Total current liabilities 1,182,846 927,706 121,974 17,515,006 Noncurrent liabilities:

Compensated absences - due in more than one year 42,395 116,332 6,697 175,623 Lease payable - due in more than one year - 152,044 - 152,044 Claims payable, due in more than one year - - 52,421,442 - Loans from other funds- due in more than one year 1,364,845 - 1,364,845 - Total noncurrent liabilities 1,407,240 116,332 158,741 54,113,954 Total liabilities 2,590,086 1,044,038 280,715 71,628,960

NET POSITION
Net investment in capital assets 22,372,365 21,134,194 213,765 43,720,324 Restricted for pensions - - 69,968,331 -
Unrestricted 14,811,363 48,408,506 1,274,130 83,977,310 Total net position $ 69,542,700 37,183,728 $ 1,487,895 $ 197,665,965 $ City of Stockton
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2022
139
ATTACHMENT A 1749
General Workers' Employee Other
Liability Compensation Health Retirement Benefits and
Insurance Insurance Insurance Benefits Insurance
OPERATING REVENUES:

Charges for services $ 11,497,347 $ 11,797,117 $ 22,114,760 $ 71,762,532 $ 2,863,860 Miscellaneous - 15 - - -
Total operating revenues 11,497,347 11,797,132 22,114,760 71,762,532 2,863,860 OPERATING EXPENSES:

Operation and maintenance 11,379,486 1,697,764 21,888,606 75,234,094 3,116,000 General and administrative 1,988,387 3,336,967 1,159,138 95 531 Depreciation and amortization - - - - -
Total operating expenses 13,367,873 5,034,731 23,047,744 75,234,189 3,116,531 OPERATING INCOME (LOSS) (1,870,526) 6,762,401 (932,984) (3,471,657) (252,671) NONOPERATING REVENUES (EXPENSES):

Investment income:

Interest income (loss) (622,815) (1,095,919) (199,449) (7,991,007) (34,888) Interest expense and fiscal charges - - - - -
Other nonoperating revenues - 103,769 - 1,389,317 63,484 Total non-operating revenues (expenses) (622,815) (1,095,919) (95,680) (6,601,690) 28,596

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (2,493,341) 5,666,482 (1,028,664) (10,073,347) (224,075)

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions - - - - -
Transfers in - - - 234,575 -
Total capital contributions and transfers - - 234,575 - - CHANGES IN NET POSITION (2,493,341) 5,666,482 (1,028,664) (9,838,772) (224,075) NET POSITION:

Beginning of year, as restated (Note 19) 10,610,951 (4,130,355) 6,307,625 83,521,166 1,060,625 End of year $ 1,536,127 8,117,610 $ 5,278,961 $ 73,682,394 $ 836,550 $ City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2022
140
ATTACHMENT A 1750
Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total
OPERATING REVENUES:

Charges for services 14,073,527 $ 17,581,296 $ 308,662 $ 151,999,101 $ Miscellaneous - - - 15
Total operating revenues 17,581,296 14,073,527 308,662 151,999,116 OPERATING EXPENSES:

Operation and maintenance 6,919,520 11,311,510 298,764 131,845,744 General and administrative 1,251,460 - 7,736,578 -
Depreciation and amortization 3,171,400 1,573,275 59,019 4,803,694 Total operating expenses 11,342,380 12,884,785 357,783 144,386,016 OPERATING INCOME (LOSS) 2,731,147 4,696,511 (49,121) 7,613,100 NONOPERATING REVENUES (EXPENSES):

Investment income:

Interest income (loss) (478,363) (1,411,335) (44,952) (11,878,728) Interest expense and fiscal charges (41,125) - (1,257) (42,382) Other nonoperating revenues - 7,143 1,563,713 -
Total non-operating revenues (expenses) (519,488) (1,404,192) (46,209) (10,357,397)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 2,211,659 3,292,319 (95,330) (2,744,297)

CAPITAL CONTRIBUTIONS

AND TRANSFERS
Capital contributions 6,001,060 14,620 6,015,680 -
Transfers in 65,979 - 300,554 -
Total capital contributions and transfers 6,067,039 14,620 6,316,234 - CHANGES IN NET POSITION 8,278,698 3,306,939 (95,330) 3,571,937 NET POSITION:

Beginning of year, as restated (Note 19) 28,905,030 66,235,761 1,583,225 194,094,028 End of year $ 69,542,700 37,183,728 $ 1,487,895 $ 197,665,965 $ City of Stockton
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2022
141
ATTACHMENT A 1751
General Workers' Employee Other
Liability Compensation Health Retirement Benefits &
Insurance Insurance Insurance Benefits Insurance

CASH FLOWS FROM OPERATING
ACTIVITIES:

Receipts for interfund services provided $ 11,516,557 $ 11,842,796 $ 22,114,760 $ 71,762,532 $ 2,863,860 Payments to suppliers and employees (13,322,965) (5,042,829) (21,990,347) (75,414,492) (3,207,952) Claims and insurance paid 4,979,607 (5,895,000) - - -
Net cash provided by (used in) operating
activities 3,173,199 904,967 124,413 (3,651,960) (344,092)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in and out - - 234,575 - -
Loans to and from other funds 1,097,321 - - - -
Other nonoperating revenues - 103,769 - 1,389,317 127,718 Net cash provided by (used in) noncapital
financing activities 1,097,321 - 103,769 1,623,892 127,718

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchases of capital assets - - - - -
Principal paid on debt - - - - -
Interest paid on debt - - - - -
Net cash (used in) capital and related
financing activities - - - - -
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (625,436) (1,084,759) (205,663) (8,136,268) (34,617) Net cash provided by investing activities (625,436) (1,084,759) (205,663) (8,136,268) (34,617)

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 2,547,763 917,529 22,519 (10,164,336) (250,991) CASH AND CASH EQUIVALENTS:

Beginning of year 20,791,270 41,260,040 5,560,941 84,943,057 1,121,458 End of year $ 42,177,569 23,339,033 $ 5,583,460 $ 74,778,721 $ 870,467 $

RECONCILIATION OF CASH

AND INVESTMENTS TO THE STATEMENT OF
NET POSITION - PROPRIETARY FUNDS:

Cash and investments 23,339,033 $ 42,177,569 $ 5,583,460 $ 4,810,390 $ 870,467 $ Restricted assets:

Cash with investments fiscal agents - - - 69,968,331 -
Total cash and investments $ 42,177,569 23,339,033 $ 5,583,460 $ 74,778,721 $ 870,467 $ City of Stockton
Combining Statement of Cash Flows
For the Year Ended June 30, 2022
Internal Service Funds
142
ATTACHMENT A 1752
Computer
Vehicle Fleet and Radio Other
Equipment Equipment Equipment Total

CASH FLOWS FROM OPERATING
ACTIVITIES:

Receipts for interfund services provided 14,227,602 $ 17,865,696 $ 308,662 $ 152,502,465 $ Payments to suppliers and employees (9,078,498) (12,514,115) (285,721) (140,856,919) Claims and insurance paid - - - (915,393)
Net cash provided by (used in) operating
activities 5,351,581 5,149,104 22,941 10,730,153

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers in and out - - 234,575
Loans to and from other funds (486,720) - - 610,601
Other nonoperating revenues - 97,350 - 1,718,154
Net cash provided by (used in) noncapital
financing activities 97,350 (486,720) - 2,563,330

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Purchases of capital assets (2,336,907) (6,051,652) - (8,388,559) Principal paid on debt (206,486) - (49,954) (256,440)
Interest paid on debt (50,508) - (1,166) (51,674)
Net cash (used in) capital and related
financing activities (6,051,652) (2,593,901) (51,120) (8,696,673) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings (484,086) (1,392,025) (44,648) (12,007,502) Net cash provided by investing activities (1,392,025) (484,086) (44,648) (12,007,502)

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (1,994,746) 1,584,397 (72,827) (7,410,692) CASH AND CASH EQUIVALENTS:

Beginning of year 14,813,794 49,019,181 1,579,176 219,088,917 End of year $ 47,024,435 16,398,191 $ 1,506,349 $ 211,678,225 $

RECONCILIATION OF CASH

AND INVESTMENTS TO THE STATEMENT OF
NET POSITION - PROPRIETARY FUNDS:

Cash and investments 16,398,192 $ 47,024,435 $ 1,506,349 $ 141,709,895 $ Restricted assets:

Cash with investments fiscal agents - - - 69,968,331
Total cash and investments $ 47,024,435 16,398,192 $ 1,506,349 $ 211,678,226 $ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2022
143
ATTACHMENT A 1753
General Workers' Employee Other
Liability Compensation Health Retirement Benefits &
Insurance Insurance Insurance Benefits Insurance

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

Operating income (loss) $ (1,870,526) $ 6,762,401 $ (932,984) $ (3,471,657) $ (252,671) 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 19,210 26,424 - - -
Due from other funds 19,240
Prepaid items 1,576 446 (110,963) - -
Inventory of supplies - - - - -
Deposits and advances - (446) 632,736 - -
Accounts payable 14,179 (5,976) 554,029 (180,297) (91,421) Accrued payroll (4,809) 12,029 13,612 (6) -
Compensated absences 33,962 (14,151) (32,017) - -
Self-insurance - claims and judgments 4,979,607 (5,895,000) - - - Net cash provided by (used in) operating
activities $ 3,173,199 $ 904,967 $ 124,413 $ (3,651,960) $ (344,092) NONCASH TRANSACTIONS:

Capital contributions $ - $ - $ - $ - $ -
City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2022
144
ATTACHMENT A 1754
Vehicle Fleet Computer Other
Equipment Equipment Equipment Total

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

Operating income (loss) 2,731,147 $ 4,696,511 $ (49,121) $ 7,613,100 $ Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:

Depreciation and amortization 3,171,400 1,573,275 59,019 4,803,694 Changes in assets and liabilities:

Accounts and other receivables 154,075 - - 199,709
Due from other funds - 284,400 - 303,640
Prepaid items (382,580) (380,360) (21,948) (893,829)
Inventory of supplies - (179,726) - (179,726)
Deposits and advances (283,055) - - 349,235
Accounts payable (213,840) (527,253) 32,688 (417,891)
Accrued payroll 1,941 12,261 401 35,429
Compensated absences (29,984) (127,527) 1,902 (167,815) Self-insurance - claims and judgments - - - (915,393)
Net cash provided by (used in) operating
activities $ 5,351,581 5,149,104 $ 22,941 $ 10,730,153 $ NONCASH TRANSACTIONS:

Capital contributions 6,001,060 $ 14,620 $ - $ 6,015,680 $ City of Stockton
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2022
145
ATTACHMENT A 1755
This page intentionally left blank.
146
ATTACHMENT A 1756

CUSTODIAL-FIDUCIARY FUNDS
ATTACHMENT A 1757
ATTACHMENT A 1758
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.
147
ATTACHMENT A 1759
Land-Secured
Financing All Other Total
Assets:

Cash and investments 8,223,126 $ 16,992,472 $ 25,215,598 $ Cash and investments with fiscal agents 6,472,600 - 6,472,600 Receivables:

Interest 42,524 19,748 62,272
Accounts and other receivables - 3,662,249 3,662,249
Total assets 20,697,245 14,715,474 35,412,719
Liabilities:

Accounts payable 21,694 24,294 2,600
Due to other governments 2,950,173 2,950,173 -
Total liabilities 2,971,867 2,600 2,974,467
Net Position:

Restricted for individual, organization,
and other government 14,712,874 17,725,378 32,438,252
Total net positions $ 17,725,378 14,712,874 $ 32,438,252 $ City of Stockton
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2022
148
ATTACHMENT A 1760
Land-Secured
Financing All Other Total
ADDITIONS:

Property taxes $ - 7,844,621 $ 7,844,621 $
Use of money and property 87 - 87
Investment income (loss) (271,943) (552,840) (824,783)
Total additions (552,840) 7,572,765 7,019,925
DEDUCTIONS:

General government 373,760 - 373,760
Public works 1,778,443 5,748,509 7,526,952
Debt obligations - 7,362,720 7,362,720
Total deductions 1,778,443 13,484,989 15,263,432
CHANGE IN NET POSITION (2,331,283) (5,912,224) (8,243,507) NET POSITION:

Beginning of year, 20,625,098 20,056,661 40,681,759
End of year $ 17,725,378 14,712,874 $ 32,438,252 $
City of Stockton
For the Year Ended June 30, 2022
Fiduciary Funds - Custodial Funds
Combining Statement of Changes in Fiduciary Net Position 149
ATTACHMENT A 1761
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 36,132,000 $ 45,412,129 $ 9,280,129 Total revenues 36,132,000 45,412,129 9,280,129
Uses/Expenditures
Police
Salary & benefits
Sworn 22,715,023 18,420,634 4,294,389
Non-Sworn 4,144,699 3,055,935 1,088,764
Vacancy savings (936,054) - (936,054)
Other services 3,035,090 2,838,027 197,063
Materials & supplies
Fuel 281,265 359,709 (78,444)
Other supplies 454,007 204,581 249,426
Other expenses
Technology upgrade - 9,515 (9,515)
Training 595,000 520,287 74,713
Capital outlay 77,254 - 77,254
Total police 30,366,284 25,408,688 4,957,596
Office of Violence Prevention
Salary & benefits
Non-sworn 899,409 618,937 280,472
Other services 400,706 191,624 209,082
Materials & supplies
Fuel 3,182 3,933 (751)
Other supplies 59,999 35,067 24,932
Office equipment 3,979 914 3,065
Other expenses 20,000 637 19,363
Total Office of Violence Prevention 1,387,275 851,112 536,163 Basis Adjustment
Encumbrances (included in final budget) - 344,973 (344,973) Total Measure B Expenditures 31,753,559 26,604,773 5,148,786 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 88% 59%
Other City Services
General Fund available fund balance 4,378,441 18,807,356 (14,428,915) Total adjustment 4,378,441 18,807,356 (14,428,915)
Total Uses/Expenditures $ 45,412,129 36,132,000 $ (9,280,129) $ Schedule of Sources and Uses
Measures A and B
For Year Ended June 30, 2022
City of Stockton
150
ATTACHMENT A 1762

STATISTICAL SECTION
ATTACHMENT A 1763
ATTACHMENT A 1764
Operating Information (pages 185-191)
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the government provides and the activities it performs.

STATISTICAL SECTION OVERVIEW
This part of the City’s annual comprehensive financial report is not covered by the Independent Auditor’s Report, but presents supplemental detailed information for the benefit of readers in understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

Financial Trends (pages 152-165)
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time.

Revenue Capacity (pages 166-173)
These schedules contain information to help the reader assess the City’s most significant local revenue sources, transient occupancy tax (“TOT”) and property taxes.

Debt Capacity (pages 174-182)
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information (pages 183-184)
These schedules offer demographic and economic indicators to help the reader understand the environment with which the City’s financial activities take place.
151
ATTACHMENT A 1765
2022 2021 2020 2019 2018
Governmental activities:

Net investment in capital assets $ 764,271 $ 732,219 $ 724,164 $ 346,021 $ 328,284 Restricted 524,405 457,693 239,339 204,114 170,507
Unrestricted (171,510) (262,907) (119,715) 260,748 238,421 1,117,166 927,005 843,787 810,883 737,211
Business-type activities:

Net investment in capital assets 438,676 365,873 301,434 381,015 367,317 Restricted 25,394 46,241 125,668 28,411 46,805
Unrestricted 200,819 224,551 177,840 155,217 133,656
664,889 636,665 604,942 564,643 547,778
Primary government:

Net investment in capital assets 1,202,947 1,098,093 1,025,598 727,036 695,601 Restricted 549,799 503,934 365,007 232,525 217,311
Unrestricted 29,309 (38,356) 58,125 415,965 372,077
$ 1,782,055 $ 1,563,670 $ 1,448,729 $ 1,375,526 $ 1,284,989 Source: City of Stockton Department of Administrative Services 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
City of Stockton
Table 1
Net Position by Classification
Last Ten Fiscal Years
(Dollar amounts in thousands)
152
ATTACHMENT A 1766
2017 2016 2015 2014 2013
Governmental activities:

Net investment in capital assets $ 330,655 $ 287,078 $ 326,823 $ 714,595 $ 725,426 Restricted 148,493 153,087 130,763 96,596 93,905
Unrestricted 229,584 196,005 160,224 (62,855) (82,351)
708,732 636,170 617,810 748,336 736,980
Business-type activities:

Net investment in capital assets 362,886 369,983 379,853 413,783 418,881 Restricted 50,904 54,618 56,521 54,175 56,589
Unrestricted 82,938 44,792 28,751 42,641 38,380
496,728 469,393 465,125 510,599 513,850
Primary government:

Net investment in capital assets 693,540 657,061 706,676 1,128,378 1,144,307 Restricted 199,397 207,705 187,284 150,771 150,494
Unrestricted 312,522 240,797 188,975 (20,214) (43,971)
$ 1,205,460 $ 1,105,563 $ 1,082,935 $ 1,258,935 $ 1,250,830 Source: City of Stockton Department of Administrative Services 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
City of Stockton
Table 1
Net Position by Classification (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
153
ATTACHMENT A 1767
2022 2021 2020 2019 2018
$ 72,154 $ 74,314 $ 37,269 $ 37,821 $ 37,259
170,564 217,953 217,941 199,263 212,181
43,601 55,086 44,922 37,168 38,435
13,107 12,792 14,657 13,501 12,301
14,300 11,526 27,798 27,288 23,753
7,894 4,373 5,298 5,914 5,964
321,620 376,045 347,885 320,954 329,894
Business-type activities:
54,532 54,266 47,974 46,641 39,526
66,991 61,124 63,983 58,093 41,648
7,288 6,759 6,599 7,419 4,729
5,687 4,995 5,795 5,501 5,310
1,375 1,667 2,499 3,613 3,299
Total business-type activities 135,873 128,811 126,850 121,267 94,512 Total expenses 457,493 504,856 474,736 442,221 424,406
Governmental activities:

Charges for services:

General government 12,560 31,123 9,250 13,977 16,451
Public safety 18,688 13,235 11,220 16,925 15,309
Public works 32,456 14,291 3,143 10,367 14,914
Library 7,037 7,537 278 470 595
Parks and recreation 406 852 4,010 11,320 12,194
Operating grants and contributions 100,879 51,329 21,509 13,446 12,402 Capital grants and contributions 39,065 47,352 30,227 45,632 21,426 Total governmental activities 220,723 156,087 79,637 112,137 93,292 Business-type activities:

Charges for services:

Water utility 64,097 66,013 57,519 49,489 50,590
Wastewater utility 73,885 78,509 71,210 67,432 68,191
Stormwater utility 6,040 6,137 6,417 6,407 5,683
Parking Authority 4,589 5,690 4,749 4,592 4,447
Other 355 428 1,038 1,755 1,776
Operating grants and contributions 2,500 - 7,314 3,643 3,855 Capital grants and contributions 12,231 13,263 7,258 4,626 6,245 162,229 171,508 155,504 137,944 140,787
Total program revenues 392,230 318,316 235,141 250,081 234,078 Change in Net Position
Governmental activities (219,957) (100,897) (268,248) (208,817) (236,603) Business-type activities 35,635 33,417 28,654 16,677 46,275 Total primary government (65,263) $ (186,540) $ (239,594) $ (192,140) $ (190,328) $ Water utility
Wastewater utility
Program Revenues
Total business-type activities
Other
Expenses
General government
Public safety
Public works
Library
Governmental activities:

Total governmental activities
Stormwater utility
Parks and recreation
Interest and fiscal charges
Parking Authority
City of Stockton
Table 2
Changes in Net Position
(Dollar amounts in thousands)
Last Ten Fiscal Years
Fiscal Year
154
ATTACHMENT A 1768
2017 2016 2015 2014 2013
$ 33,378 $ 39,608 $ 35,576 $ 34,594 $ 24,909
154,932 169,015 123,403 124,806 108,931
45,670 36,344 37,685 51,942 49,259
10,904 10,406 9,098 9,807 8,445
22,481 21,620 20,801 19,456 19,736
4,288 2,216 3,401 14,486 14,615
271,653 279,209 229,964 255,091 225,895
Business-type activities:
42,886 48,001 47,474 44,720 48,570
50,545 58,665 56,153 55,724 51,166
5,288 6,601 7,084 5,758 5,959
5,641 5,384 5,026 5,120 4,944
3,235 3,116 3,374 3,448 2,939
Total business-type activities 107,595 121,767 119,111 114,770 113,578 Total expenses 379,248 400,976 349,075 369,861 339,473
Governmental activities:

Charges for services:

General government 15,831 19,184 15,169 14,785 17,977
Public safety 9,188 13,663 16,863 21,016 18,130
Public works 8,292 3,373 6,105 5,178 6,136
Library 517 377 441 437 670
Parks and recreation 9,158 8,765 6,145 5,655 6,597
Operating grants and contributions 12,565 12,861 18,823 18,840 23,827 Capital grants and contributions 16,286 17,591 34,268 36,052 57,146 Total governmental activities 71,043 76,608 97,814 101,963 130,483 Business-type activities:

Charges for services:

Water utility 33,277 42,308 35,059 37,855 37,464
Wastewater utility 68,938 66,833 65,726 59,953 55,369
Stormwater utility 5,573 5,619 5,569 5,571 5,503
Parking Authority 4,971 5,141 4,170 2,882 2,669
Other 1,750 1,675 1,769 1,870 1,934
Operating grants and contributions 3,889 3,776 5,133 3,865 4,175 Capital grants and contributions 2,971 3,562 2,945 1,112 4,700 121,847 128,436 120,371 113,108 111,814
Total program revenues 199,479 198,455 218,185 215,071 242,297 Change in Net Position
Governmental activities (202,601) (200,610) (132,150) (153,128) (95,412) Business-type activities 20,841 80 1,260 (1,662) (1,764) Total primary government (179,769) $ (202,521) $ (130,890) $ (154,790) $ (97,176) $ Expenses
Governmental activities:

General government
Public safety
Public works
Library
Parks and recreation
Interest and fiscal charges
Total governmental activities
Water utility
Wastewater utility
Stormwater utility
Parking Authority
Other
Program Revenues
City of Stockton
Table 2
Last Ten Fiscal Years
Changes in Net Position (Continued)
(Dollar amounts in thousands)
Fiscal Year
Total business-type activities
155
ATTACHMENT A 1769
2022 2021 2020 2019 2018
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:

Property $ 41,066 $ 38,523 $ 36,692 $ 35,739 $ 33,112
In lieu of sales tax - - - -
Utility user 38,328 36,414 34,537 34,252 35,415
Sales - levied by City (1) 75,037 68,639 57,077 57,911 52,788 Franchise fees 21,186 16,901 15,292 12,307 13,243
Business licenses 15,905 15,695 14,557 19,958 13,507
Hotel/motel room 3,620 2,860 2,834 3,377 3,193
Document transfer 1,626 1,222 912 1,071 1,078
Other 4,016 2,874 3,262 2,905 2,916
Shared revenue: - - -
Vehicle license fees 27,310 27,757 31,839 23,599 29,091 Sales and use tax levied by state (1) 76,239 65,201 56,122 57,151 68,467 Other 18,303 - 165
(25,552) 14,086 21,759 18,438 899
(132) 147 12 (1,602) (203)
10,369 11,105 9,469 7,810 4,083
- - (547) 500 6,203
- - - - -
- - - - -
Transfers from Successor Agency, Net - - - - 734
1,751 438 (922) 9,074 389
303,175 289,456 301,198 282,489 265,082
Business-type activities:
- - 1,407 1,341 1,271
- - - - 100
Investment earnings (7,018) 57 9,318 7,920 233
Gain on sale of capital assets - - (2) - 20
- - - - -
- - - - 3,540
Transfers (438) - 922 (9,074) (389)
(1,751) - - - -
Total business-type activities (7,456) (1,694) 11,645 188 4,774 301,481 282,000 312,843 282,676 269,857
Change in Net Position
Governmental activities 188,559 83,218 32,950 73,671 28,479 Business-type activities 28,178 31,723 40,299 16,865 51,049 Total primary government 216,737 $ 114,941 $ 73,249 $ 90,536 $ 79,529 $ Source: City of Stockton Department of Administrative Services (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.

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
Investment earnings
Gain (Loss) on disposal of capital assets
Miscellaneous
(Dollar amounts in thousands)
Total governmental activities
Extraordinary items
Miscellaneous
Special item
Transfers
Grants and contributions not restricted to
Other taxes
Proceeds of long-term debt
Fiscal Year
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
156
ATTACHMENT A 1770
2017 2016 2015 2014 2013
General Revenues and Other
Change in Net Position:

Governmental activities:

Taxes:

Property $ 32,411 $ 30,646 $ 29,573 $ 28,015 $ 29,420
In lieu of sales tax 8,775 9,816 9,706 9,938
Utility user 34,455 33,379 32,921 32,370 31,941
Sales - levied by City (1) 42,506 39,070 37,208 15,536 9,086 Franchise fees 13,289 12,397 12,379 11,981 11,677
Business licenses 12,243 11,996 10,805 10,392 10,153
Hotel/motel room 2,997 2,711 2,378 2,080 2,006
Document transfer 801 857 587 564 458
Other 1,939 1,801 930 728 287
Shared revenue:

Vehicle license fees 21,423 20,354 19,602 18,069 17,433 Sales and use tax levied by state (1) 49,910 45,097 36,904 35,111 34,031 Other 44 45 49 253 400
1,966 4,728 1,532 1,128 123
578 568 (13,214) (3,712) (1)
2,820 7,303 16,982 3,042 2,411
- - - -
10,237 - 23,396 - -
- 250,701 - - -
Transfers from Successor Agency, Net - - - - -
(297) 654 383 1,330 524
219,430 228,273 472,932 166,593 159,887
Business-type activities:
1,239 1,292 974 1,166 1,197
- - - - -
Investment earnings 131 2,653 1,172 1,448 530
Gain on sale of capital assets (1,156) - (3,300) - -
- - - 431 14
- - - - -
Transfers (654) 297 (383) (1,330) (524)
- - 9,548 - -
Total business-type activities (387) 4,189 8,011 1,715 1,217 223,619 227,886 480,943 168,308 161,104
Change in Net Position
Governmental activities 27,662 16,829 340,782 13,465 64,475 Business-type activities 20,454 4,271 9,271 53 (547)
Total primary government 48,116 $ 21,100 $ 350,053 $ 13,518 $ 63,928 $ Source: City of Stockton Department of Administrative Services 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. (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
Fiscal Year
City of Stockton
Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
Grants and contributions not restricted to
157
ATTACHMENT A 1771
2022 2021 2020 2019 2018
General Fund
Nonspendable $ 2,077 $ 2,215 $ 5,796 $ 3,621 $ 1,303
Restricted 5,289 4,428 3,998 4,034 4,730
Committed 123,754 77,638 59,714 54,243 45,957
Assigned 4,285 4,526 4,017 4,144 2,227
Unassigned 43,208 42,049 41,085 37,990 36,265
Total General Fund 178,613 130,857 114,611 104,032 90,482 All other governmental funds
Nonspendable 151 152,462 356 356 370
Restricted 428,305 222,308 189,758 169,507 117,387
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total all other governmental funds 428,456 374,770 190,114 169,863 117,757 Total Fund Balance $ 607,069 $ 505,627 $ 304,725 $ 273,895 $ 208,239 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)
158
ATTACHMENT A 1772
2017 2016 2015 2014 2013
General Fund
Nonspendable $ 1,539 $ 2,214 $ 810 $ 500 $ 409
Restricted 4,603 3,549 2,949 3,551 2,334
Committed 56,439 49,088 28,930 34,008 23,775
Assigned 3,922 5,467 - 3,059 1,710
Unassigned 36,184 33,326 38,639 9,751 3,093
Total General Fund 102,687 93,644 71,328 50,869 31,321
All other governmental funds
Nonspendable - 373 382 443 369
Restricted 114,254 122,084 104,785 81,435 75,157
Committed - - - - -
Assigned - - - - -
Unassigned 3,232 - (20,669) - (18,793)
Total all other governmental funds 117,486 122,457 105,167 61,209 56,733 Total Fund Balance $ 220,173 $ 216,101 $ 176,495 $ 112,078 $ 88,054 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)
159
ATTACHMENT A 1773
2022 2021 2020 2019 2018
Revenues:

Taxes:

Property 41,066 $ 38,523 $ 36,692 $ 35,342 $ 33,068 $
In lieu of sales tax - - - - 44
Utility user 38,328 36,414 34,537 34,252 35,415
Sales (levied by City) (1) 68,639 82,951 57,077 57,911 52,788 Franchise fees 19,932 16,901 15,292 12,307 13,243
Business license 15,906 15,695 14,557 13,215 13,507
Hotel/motel room 2,860 3,620 2,834 3,377 3,193
Document transfer 1,626 1,222 912 1,071 1,126
Other 4,016 2,874 3,262 2,905 2,916
Licenses and permits 9,129 7,670 6,847 6,744 6,214
Federal grants and subsidies 84,812 30,339 15,578 16,517 13,235 Other shared revenue (sales and use tax levied by state) (1) 76,239 65,201 56,122 51,577 53,817 Other governmental 85,662 99,161 59,367 66,594 57,778
Charges for services 39,532 31,330 26,904 27,227 29,377 Fines and forfeitures 2,001 379 1,101 1,277 1,247
Use of money and property 9,955 5,731 10,569 12,460 9,528 Investment income: - -
Interest income (loss) (13,673) 7,785 14,075 11,758 1,063 Refunds and reimbursements 550 602 6,633 6,614 7,887
Miscellaneous 8,258 10,189 8,981 8649 8,596
Total revenues 509,910 441,514 371,340 369,795 344,044
Expenditures:

Current:

General government 76,830 72,185 30,148 30,537 26,761
Public safety 206,107 205,923 193,778 189,824 184,426
Public works 34,263 41,960 20,120 19,793 18,852
Library 14,659 12,762 14,400 13,789 12,416
Parks and recreation 14,552 8,207 25,920 26,006 22,462
Capital outlay 53,034 26,127 31,225 35,158 51,210
Debt service: - - -
Principal retirement 1,943 1,806 1,699 11,477 2,204
Cost of issuance - - - -
Interest and fiscal charges 7,397 4,617 5,229 5,627 5,767 Total expenditures 408,785 373,587 322,521 332,211 324,098 Excess (deficiency) of revenues
over (under) expenditures $ 101,125 $ 67,926 $ 48,819 $ 37,584 $ 19,946 City of Stockton
Fiscal Year
Table 4
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)
160
ATTACHMENT A 1774
2017 2016 2015 2014 2013
Revenues:

Taxes:

Property 32,411 $ 30,646 $ 29,573 $ 28,014 $ 29,420 $
In lieu of sales tax - 8,775 9,816 9,706 9,938
Utility user 34,455 33,379 32,921 32,369 31,941
Sales (levied by City) (1) 39,070 42,506 37,208 15,536 9,086 Franchise fees 13,289 12,397 12,380 11,981 11,677
Business license 12,243 11,996 10,805 10,392 10,153
Hotel/motel room 2,711 2,997 2,378 2,080 2,006
Document transfer 801 856 587 565 458
Other 1,939 1,535 930 728 287
Licenses and permits 5,867 5,347 4,398 3,808 3,696
Federal grants and subsidies 12,859 10,470 21,796 22,453 23,158 Other shared revenue (sales and use tax levied by state) (1) 49,910 45,097 36,904 35,111 34,031 Other governmental 37,574 36,696 41,806 47,951 71,746
Charges for services 22,920 26,473 21,351 19,410 19,059 Fines and forfeitures 1,164 624 3,814 2,925 2,419
Use of money and property 8,197 8,172 9,318 9,536 13,767 Investment income:

Interest income (loss) 1,762 3,088 916 650 119
Refunds and reimbursements 6,077 5,188 12,710 2,401 1,814 Miscellaneous 6,745 11,246 16,674 7,707 6,942
Total revenues 293,716 293,766 306,285 263,323 281,717
Expenditures:

Current:

General government 29,235 27,229 34,652 25,510 23,245
Public safety 171,073 150,853 141,542 129,030 125,331
Public works 15,818 14,861 14,152 14,458 13,498
Library 10,619 10,107 9,880 9,793 9,039
Parks and recreation 20,493 19,295 19,094 17,202 17,733 Capital outlay 31,407 23,857 31,345 43,273 72,568
Debt service:

Principal retirement 13,593 3,325 8,217 9,589 9,013
Cost of issuance 2,119 - - -
Interest and fiscal charges 2,872 3,229 4,661 5,957
Total expenditures 295,110 251,646 262,111 253,516 276,384 Excess (deficiency) of revenues
over (under) expenditures $ (1,394) $ 42,120 $ 44,174 $ 9,807 $ 5,333 City of Stockton
Fiscal Year
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
(Dollar amounts in thousands)
161
ATTACHMENT A 1775
2022 2021 2020 2019 2018
Other financing sources (uses):

Capital contributions - $ - $ - $ - $
Transfers in 27,618 19,903 18,062 31,310 19,077
Transfers out (27,480) (41,452) (36,445) (29,479) (37,913) Transfers from successor Agency - - - - 734
Special Item (Note 18) - - - - 6,203
Bond insurers proceeds 163 - - - -
Operating transfers out to a component unit - - - - -
Proceeds of current refunding bonds - - - - -
Sales of capital assets 17 2,419 393 52 800
Advances from other funds - - - - -
Payment to refunded bond escrow agent - - - - -
Total other financing sources (uses) 318 (19,131) (17,990) 1,884 (11,099) Special items
Net change in fund balance 101,442 48,796 30,830 39,468 8,847 Fund balance, beginning of year, original 505,627 456,831 273,895 234,427 225,581 Fund balance, beginning of year, restated 505,627 456,831 273,895 234,427 225,581 Fund balance, end of year 607,069 $ 505,627 $ 304,725 $ 273,895 $ 234,427 $ Debt service as a percentage of noncapital expenditures 644956.6% 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
162
ATTACHMENT A 1776
2017 2016 2015 2014 2013
Other financing sources (uses):

Capital contributions - $ - $ - $ - $ - $
Transfers in 23,347 15,916 16,860 13,497 -
Transfers out (12,966) (18,810) (20,235) (13,031) 30,678 Transfers from successor Agency - - - - (30,360)
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 - - - - -
Sales of capital assets 492 379 521 200 -
Advances from other funds - - - - -
Payment to refunded bond escrow agent - - (6,080) - -
Total other financing sources (uses) 10,873 (2,515) 20,244 8,466 8,605 Special items - - - -
Net change in fund balance 9,479 39,605 64,417 18,273 13,938 Fund balance, beginning of year, original 216,100 176,495 112,078 93,806 79,869 Fund balance, beginning of year, restated 216,100 176,495 112,078 93,806 79,869 Fund balance, end of year 225,579 $ 216,100 $ 176,495 $ 112,078 $ $ 93,806 Debt service as a percentage of noncapital expenditures 6.7% 2.4% 5.2% 7.3% 7.9% (Dollar amounts in thousands)
City of Stockton
Table 4
Changes in Fund Balance of Governmental Funds (Continued) Last Ten Fiscal Years
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
163
ATTACHMENT A 1777
2022 2021 2020 2019 2018
Property (1) $ 41,066 $ 38,523 $ 36,692 $ 35,342 $ 33,068 In lieu of sales tax - - - - 44
Utility user 38,328 36,414 34,537 34,252 35,415
Sales (levied by city) (2) 82,951 68,639 57,077 57,911 52,788 Franchise fees 19,932 16,901 15,292 12,307 13,243
Business licenses 15,905 15,695 14,557 13,215 13,507
Hotel/motel room 3,620 2,860 2,834 3,377 3,193
Document transfer 1,626 1,222 912 1,071 1,126
Other 4,016 2,874 3,262 2,905 2,916
Totals $ 207,444 $ 183,127 $ 165,163 $ 160,379 $ 155,301 Source: City of Stockton Department of Administrative Services 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.

City of Stockton
Table 5
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(Dollar amounts in thousands)
164
ATTACHMENT A 1778
2017 2016 2015 2014 2013
% Change
2013
to 2022
Property (1) $ 32,411 $ 30,646 $ 29,573 $ 28,014 $ 29,420 40% In lieu of sales tax - 8,775 9,816 9,706 9,938 -100%
Utility user 34,455 33,379 32,921 32,369 31,941 20%
Sales (levied by city) (2) 42,506 39,070 37,208 15,536 9,086 813% Franchise fees 13,289 12,397 12,380 11,981 11,677 71%
Business licenses 12,243 11,995 10,805 10,392 10,153 57% Hotel/motel room 2,997 2,711 2,378 2,080 2,006 80%
Document transfer 801 856 587 565 458 255%
Other 1,535 930 728 287 1299%
Totals $ 138,702 $ 141,364 $ 136,598 $ 111,371 $ 104,966 98% 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.
165
ATTACHMENT A 1779
2022 2021 2020 2019 2018
Secured roll $ 26,379,229 $ 24,952,342 $ 23,628,432 $ 22,488,506 $ 21,378,475 Utility roll 6,496 6,507 5,827 5,816 5,863
Unsecured roll 1,563,966 1,507,064 1,439,016 1,610,921 1,629,758 Gross assessed value 27,949,691 26,465,914 25,073,275 24,105,243 23,014,096 Less exemptions (1) 2,020,034 1,980,526 1,948,125 1,917,101 1,532,852 Net assessed value 25,929,657 24,485,388 23,125,150 22,188,142 21,481,244 Land 7,164,141 6,823,616 6,506,827 6,280,943 6,081,944
Improvements 19,716,382 18,716,229 17,635,057 16,582,837 15,666,837 Personal property 1,069,169 926,070 931,391 1,241,463 1,265,315 Gross assessed value 27,949,691 26,465,914 25,073,275 24,105,243 23,014,096 Less exemptions (1) 2,020,034 1,980,526 1,948,125 1,917,101 1,532,852 Net assessed value $ 25,929,657 $ 24,485,388 $ 23,125,150 $ 22,188,142 $ 21,481,244 Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00%
Source: San Joaquin County Auditor-Controller's Office
(1) For FY 2022, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $215,033 and other - $1,805,001 = $2,020,034 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.

Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
City of Stockton
Table 6
Assessed Value and Estimated Actual Value of Taxable Property 166
ATTACHMENT A 1780
2017 2016 2015 2014 2013
Secured roll $ 20,299,172 $ 19,473,994 $ 18,496,369 $ 16,981,109 $ 16,272,927 Utility roll 5,833 6,199 6,209 6,228 7,504
Unsecured roll 1,596,101 1,651,844 1,638,161 1,557,131 1,566,497 Gross assessed value 21,901,106 21,132,037 20,140,739 18,544,468 17,846,928 Less exemptions (1) 1,786,986 1,729,742 1,717,223 1,699,348 1,608,513 Net assessed value 20,114,120 19,402,295 18,423,516 16,845,120 16,238,415 Land 5,713,082 5,420,167 4,978,511 4,597,437 4,019,017
Improvements 15,004,037 14,501,054 13,928,278 12,868,329 12,696,221 Personal property 1,183,987 1,210,816 1,233,950 1,078,702 1,131,690 Gross assessed value 21,901,106 21,132,037 20,140,739 18,544,468 17,846,928 Less exemptions (1) 1,786,986 1,729,742 1,717,223 1,699,348 1,608,513 Net assessed value $ 20,114,120 $ 19,402,295 $ 18,423,516 $ 16,845,120 $ 16,238,415 Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00%
Source: San Joaquin County Auditor-Controller's Office
(1) For FY 2022, all exemptions (secured, utility, and unsecured rolls) are: homeowners - $215,033 and other - $1,805,001 = $2,020,034 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.

Last Ten Fiscal Years
(Dollar amounts in thousands)
Fiscal Year
City of Stockton
Table 6
Assessed Value and Estimated Actual Value of Taxable Property (Continued) 167
ATTACHMENT A 1781
Fiscal Year
Basic
Countywide
Levy City Total Direct
Stockton Unified
School District
San Joaquin
Delta College
District Total
2022 - 1.0000 1.0000 0.0163 0.1922 1.2085
2021 - 1.0000 1.0000 0.0183 0.2271 1.2454
2020 - 1.0000 1.0000 0.0199 0.2455 1.2654
2019 - 1.0000 1.0000 0.0225 0.2443 1.2668
2018 - 1.0000 1.0000 0.0180 0.2054 1.2234
2017 1.0000 - 1.0000 0.0180 0.2537 1.2717
2016 1.0000 - 1.0000 0.0198 0.2710 1.2908
2015 1.0000 - 1.0000 0.0233 0.2280 1.2513
2014 1.0000 - 1.0000 0.0194 0.2105 1.2299
2013 1.0000 - 1.0000 0.0202 0.1917 1.2119
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)
168
ATTACHMENT A 1782
2022 2013
Taxpayer
Taxable
Assessed Value Rank
Taxable
Assessed Value Rank
PW Fund B Development 207,617 $ 1 0.851 49,062 7 0.333 % Prologis 201,251 2 0.825 % - 0.000 %
Patmon Company Inc 149,501 3 0.613 % - 0.000 %
Excel Stockton LLC 126,103 4 0.517 % 122,966 2 0.836 %
EGMR Norcal Logistics Center LLC 108,519 5 0.445 % - 0.000 % Central Valley Indust core holdings LLC 96,237 6 0.395 % - 0.000 % Wilshire Newcastle road owner LLC 96,000 7 0.394 % - 0.000 % IDIL Stockton Logistics II 84,084 8 0.345 % 86,070 3 0.585 % Simpson Manufacturing Co Inc 77,020 9 0.316 % - 0.000 % Trader Joes company 72,794 10 0.299 % - 0.000 %
Buzz Oates LLC - 0.000 % 128,437 1 0.873 %
Diamond Walnut Growers Inc - 0.000 % 4 0.493 % 72,600
Dameron Hospital Associations - 0.000 % 5 0.479 % 70,458 Corn Products International Inc - 0.000 % 6 0.447 % 65,728 Fresh and Easy Neighborhood Market Inc. - 0.000 % 8 0.318 % 46,771 Inland Western Stockton Airport Way II LLC - 0.000 % 9 0.309 % 45,422 WTM Glimcher LLC - 0.000 % 10 0.300 % 44,113
Principal Secured Property Valuation 1,219,126 5.000 % 731,627 4.973 % Other Secured Taxpayers 25,160,103 103.179 15,541,300 105.641 Total Secured Property Valuation Before Exemptions 26,379,229 108.179 % 16,272,927 110.614 % Less Exemptions relative to secured tax roll (1) 1,994,405 8.179 1,561,472 10.614 Total Secured Property Valuation $ 24,384,825 100.000 % 14,711,455 $ 100.000 % (1) Exemptions relative to secured tax roll: FY 2022 - homeowners - $214,936 and other - $1,779,468 = $1,994,405 FY 2013 - homeowners - $240,576 and other - $1,320,896 = $1,561,472 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
169
ATTACHMENT A 1783
Amount Amount
2022 $ 39,099 $ 39,099 100 % - $ 39,099 100 %
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 %
Source: San Joaquin County Auditor-Controller’s Office
Collections in
Subsequent
Years
Secured Taxes
Levied for the
Fiscal Year Fiscal Year
Percent of
Levy (1)
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
170
ATTACHMENT A 1784
2022 2021 2020 2019 2018
Type of Customer
Residential cf 10,610,177 8,204,224 cf 7,997,883 cf 7,669,451 cf 8,231,972 cf Institutional 858,661 1,105,150 827,124 789,265 632,738 Commercial/Industrial 1,707,532 2,018,500 1,588,605 1,645,890 1,640,471 Irrigation 1,603,842 2,025,832 1,457,258 1,294,982 1,310,062 Total 12,374,259 15,759,659 cf 11,870,870 cf 11,399,588 cf 11,815,243 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
171
ATTACHMENT A 1785
This page intentionally left blank.
172
ATTACHMENT A 1786
Wastewater
Fiscal Year Monthly Base Rate
Tier 1 Additional Per
100 cf**
Tier 2 Additional Per
100 cf** Monthly Base Rate
2022 $ 2.47 33.90 $ 2.95 $ 49.56 $
2021 $ 2.47 33.90 $ 2.95 $ 46.75 $
2020 $ 2.39 32.90 $ 2.86 $ 44.10 $
2019 $ 2.31 31.95 $ 2.76 $ 38.36 $
2018 $ 2.23 31.00 $ 2.66 $ 38.36 $
2017 $ 2.00 28.00 $ 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 $
*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
173
ATTACHMENT A 1787
Fiscal
Year
Revenue*
Bonds (1)
Certificates
of
Participation
Redevelopment
Agency
Revenue Bonds*
Notes
Payable / Lease
Payable /
Settlements
Pension
Bonds*
Total
Governmental
Activities
2022 $ - $ - $ - $ 4,700 $ 53,084 $ 57,784
2021 $ - $ - $ - $ 6,321 $ 53,248 $ 59,569
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 *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
(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-ShortTerm Debt of these financial statements.

Governmental Activities*
City of Stockton
Table 12
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
174
ATTACHMENT A 1788
Fiscal
Year
Revenue
Bonds
Certificates
of
Participation
Notes
Payable /
Lease Payable
Total
Business-type
Activities Total
Amount
Per
Capita (2)
2022 274,238 $ - $ 121,514 $ 395,752 $ 453,536 $ 1.26 % $ 1,406 2021 $ 261,845 $ 129,381 - $ $ 391,226 $ 450,795 1.25 % $ 1,405 2020 $ 144,710 $ 129,380 - $ $ 274,090 $ 427,599 1.19 % $ 1,342 2019 $ 279,039 $ 10,870 - $ $ 289,909 $ 448,937 1.41 % $ 1,419 2018 $ 312,700 $ 10,870 - $ $ 323,570 $ 501,520 2.32 % $ 1,592 2017 $ 326,165 $ 10,870 - $ $ 337,035 $ 521,989 1.85 % $ 1,628 2016 $ 336,218 $ 10,954 - $ $ 347,172 $ 552,385 2.56 % $ 1,750 2015 $ 343,926 $ 11,040 - $ $ 354,966 $ 563,578 2.61 % $ 1,836 2014 $ 284,225 $ 81,270 $ 11,123 $ 376,618 $ 725,305 3.36 % $ 2,410 2013 $ 289,360 $ 84,500 $ 11,202 $ 385,062 $ 749,928 3.47 % $ 2,531 *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
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.

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)
175
ATTACHMENT A 1789
General Bonded Debt Outstanding*
Fiscal Year
Lease
Revenue
Bonds
Certificates
of
Participation
(2)
Pension
Obligation
Bonds (1)
Redevelopment
Agency
Bonds* Total
Amount
Per
Capita
2022 $ - - $ 53,084 $ - $ 53,084 $ 0.002 % 0.16 $
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 $ (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 176
ATTACHMENT A 1790
Total Debt Percentage City’s share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 Applicable (1) Debt 6/30/2022 San Joaquin Delta Community College District 188,480,000 $ 26.558 % 50,056,518 $ Stockton Unified School District 84.349 483,242,362 407,610,100 Lodi Unified School District 33.679 300,695,000 101,271,069 Lodi Unified School District School Facilities Improvement District No. 1 43,095,000 85.311 36,764,775 Lincoln Unified School District 86.483 66,074,855 57,143,517 Lincoln Unified School District Community Facilities District No. 1 15,391,567 79.882 12,295,092 Manteca Unified School District 13.004 225,734,885 29,354,564 Manteca Unified School District Community Facilities District No. 1989-1 12,582,434 100.000 12,582,434 Tracy Joint Unified School District and School Facilities Improvement Dist. No.3 133,540,900 0.003 & 0.007 8,094 City of Stockton Community Facilities District No. 99-02 22,970,000 100.000 22,970,000 City of Stockton Community Facilities District No. 2001-1 (Spanos Park West) 10,244,331 100.000 10,244,331 City of Stockton Community Facilities District No. 2003-1 1,544,655 100.000 1,544,655 City of Stockton Community Facilities District No. 2005-1 9,245,000 100.000 9,245,000 City of Stockton Community Facilities District No. 2006-1 2,274,934 100.000 2,274,934 City of Stockton Community Facilities District No. 2006-2 2,934,000 100.000 2,934,000 City of Stockton Community Facilities District No. 2006-3 4,463,939 100.000 4,463,939 City of Stockton Community Facilities District No. 2018-1 3,325,000 100.000 3,325,000 City of Stockton Community Facilities District No. 2018-2 13,505,000 100.000 13,505,000 City of Stockton 1915 Act Bonds 100.000 16,306,374 16,306,374 Reclamation District No. 2042 Community Facilities District No. 2001-1 4,076,132 18.211 742,304 San Joaquin Area Flood Control District Smith Assessment District 22,125,000 57.451 12,711,034 San Joaquin County Reclamation District No. 17 Assessment District 21,086,256 27.618 5,823,602 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 813,176,336
OVERLAPPING GENERAL FUND DEBT:

San Joaquin County Certificates of Participation 60,400,000 28.781 % 17,383,724 Lincoln Unified School District Certificates of Participation 8,335,751 86.483 7,209,008 Lodi Unified School District Certificates of Participation 10,065,000 33.679 3,389,791 Manteca Unified School District General Fund Obligations 15,976,000 13.004 2,077,519 Stockton Unified School District Certificates of Participation 25,500,000 84.349 21,508,995 Lathrop-Manteca Rural Fire Protection District certificates of Participation 3,490,000 0.025 873 City of Stockton Capital Lease Obligations 100.000 -
City of Stockton Bond Insurer Settlement Agreement Liability 53,083,658 100.000 53,083,658 TOTAL OVERLAPPING GENERAL FUND DEBT 104,653,568
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
2016 Tax Allocation Revenue Bonds Series A 73,310,000 % 73,310,000 100.000 2016 Tax Allocation Revenue Bonds Series B 11,180,000 100.000 11,180,000 TOTAL OVERLAPPING TAX INCREMENT DEBT 84,490,000
TOTAL DIRECT DEBT 53,083,658
TOTAL OVERLAPPING DEBT 949,236,246
GROSS COMBINED TOTAL DEBT (2) 1,002,319,904
2021-22 Assessed Valuation (3): $ 26,144,691
2021-22 Population 322,489
Debt Ratios Per Capita
Ratio to Assessed
Value
Total Gross Debt (2) $ 3,108 1,002,319,904 $ 3833.74 %
Ratios to 2020-21 Assessed Valuation: Total Overlapping Tax and Assessment Debt 813,176,336 2,522 3110.29 Ratios to Adjusted Assessed Valuation: Combined Direct Debt 53,083,658 165 203.04 (1) Percent of overlapping agency's assessed valuation located within boundaries of the City. (3) Represents Gross Assessed Valuation after deducting $2,020,034 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 $1,805,001 Other Exemptions Valuation ) (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. 177
ATTACHMENT A 1791
2022 2021 2020 2019 2018
Assessed valuation (1) $ 26,144,691 $ 24,701,296 $ 23,343,395 $ 22,407,298 $ 21,362,446 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 6,536,173 6,175,324 5,835,849 5,601,825 5,340,612 Debt limit percentage 15% 15% 15% 15% 15%
Debt Limit 980,426 926,299 875,377 840,274 801,092
Total net debt applicable to limit - - -
Legal debt margin $ 980,426 $ 926,299 $ 875,377 $ 840,274 $ 801,092 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
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.

City of Stockton
Table 15
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollar amounts in thousands)
178
ATTACHMENT A 1792
2017 2016 2015 2014 2013
Assessed valuation (1) $ 20,337,129 $ 19,628,594 $ 18,653,199 $ 17,079,491 $ 16,479,102 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 5,084,282 4,907,149 4,663,300 4,269,873 4,119,776 Debt limit percentage 15% 15% 15% 15% 15%
Debt Limit 762,642 736,072 699,495 640,481 617,966
Total net debt applicable to limit - - - - -
Legal debt margin $ 762,642 $ 736,072 $ 699,495 $ 640,481 $ 617,966 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
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.

City of Stockton
Table 15
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(Dollar amounts in thousands)
179
ATTACHMENT A 1793
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Water Revenue Bonds
2022 $ 73,686 $ 38,398 $ 35,288 $ 5,910 $ 8,383 $ 14,293 2.47 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 (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.

City of Stockton
Table 16
Pledged-Revenue Coverage
Last Ten Fiscal Years
(Dollars amounts in thousands)
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.
(2) Total operating expenses exclusive of depreciation and amortization. (1) Total operating revenue and contributions/transfers 180
ATTACHMENT A 1794
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Wastewater Certificates of Participation
2022 $ 82,041 $ 51,194 $ 30,847 $ 4,195 $ 3,500 $ 7,695 4.01 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 (Continued)
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 8 - Long-Term Debt of these financial statements. (2) Total operating expenses exclusive of depreciation and amortization. (Dollars amounts in thousands)
(1) Total operating revenue and contributions/transfers City of Stockton
Table 16
Pledged-Revenue Coverage (Continued)
Last Ten Fiscal Years
181
ATTACHMENT A 1795
Less: Net Debt
Fiscal Gross Operating Available Debt Service Coverage
Year Revenues (1) Expenses (2) Revenue Principal Interest Total Ratio Parking Authority
2022 $ 4,307 $ 3,470 $ 837 $ 245 $ 1,174 $ 1,419 0.59
2021 $ 4,628 $ 3,007 $ 1,621 $ 1,194 $ 1,194 1.36
(2) Total operating expenses exclusive of depreciation and amortization. (Concluded)
(1 )Includes all nongeneral obligation long term debt backed by pledged revenues. Please note 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 8 - 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)
182
ATTACHMENT A 1796
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
2022 322,489 16,710 $ 51,816$ % 131,200 103,318 5.9 3.15 58,393$ 105,335 2021 320,804 15,122 $ 47,139$ % 132,463 101,960 10.3 3.25 54,614$ 98,646 2020 318,522 16,346 $ 51,318$ % 130,300 101,235 13.1 3.26 51,318$ 101,162 2019 316,410 13,549 $ 42,822$ % 129,000 100,877 7.0 3.39 48,396$ 105,705 2018 315,103 12,748 $ 40,458$ % 134,500 100,593 6.3 3.15 46,033$ 99,347 2017 320,554 12,428 $ 38,770$ % 127,000 100,254 7.3 3.23 44,797$ 71,491 2016 315,592 11,404 $ 36,136$ % 127,900 100,146 8.3 3.20 45,347$ 71,738 2015 306,999 10,670 $ 34,755$ % 127,000 100,097 8.5 3.23 46,831$ 66,037 2014 300,899 9,937 $ 33,024$ % 125,600 100,025 12.8 3.23 47,246$ 69,183 2013 296,344 9,191 $ 31,013$ % 124,800 100,003 14.8 3.20 47,246$ 67,997 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.
183
ATTACHMENT A 1797
Percent
of Total City
Employer Employees Rank Employees Rank Employment
Stockton Unified School District 5,265 1 4.04% 3,366 3 2.70% Amazon 4,750 2 3.65%
St. Joseph’s Medical Center 3,200 3 2.46% 4,600 2 3.69% City of Stockton 2,118 4 1.63% 1,862 4 1.49%
San Joaquin County Office of Education 1,955 5 1.50% 4,720 1 3.78% Pacific Gas and Electric 1,550 6 1.19% 1,100 6 0.88%
University of the Pacific 1,329 7 1.02% 900 9 0.72%
Lincoln Unified School District 1,125 8 0.86% 631 10 0.51% Kaiser Permanente 1,065 9 0.82% 1,065 7 0.85%
San Joaquin Delta College 813 10 0.62% 1,000 8 0.80%
Dameron Hospital 0.00% 1,200 5 0.96%
Total 23,170 17.78% 20,444 16.38%
Sources: San Joaquin Partnership Survey, August 2022
City of Stockton ACFR, 2013
Employment
2013
City of Stockton
Table 18
Principal Employers
Current Year and Ten Years Ago
2022
Note: Principal employers are based on best available information.

Percent
of Total City
184
ATTACHMENT A 1798
2022 2021 2020 2019 2018
Function/Program/Department:

Admin Svcs 73 78 74 73 74
City Attorney 9 10 12 10 11
City Clerk 7 7 7 56
City Council/Mayor 4 3 4 33
City Manager 32 30 26 28 28
Community Development 42 40 42 38 32
Community Services 102 101 101 98 101
Human Resources 30 22 32 25 27
Information Technology 37 39 41 40 41
Police:

Sworn 405 433 432 469 470
Non-sworn 175 189 216 193 193
Animal control 6 11 12 11 12
Total Police 586 633 660 673 675
Fire:

Firefighters-sworn 165 171 160 177 169
Firefighters-auxiliary 41 0 21 32 20
Non-sworn personnel 34 34 32 30 25
Total Fire 240 205 213 239 214
Public Works 140 135 135 141 142
Economic Development 20 20 18 17 17
Water Utility 47 48 47 47 44
Wastewater Utility 147 147 142 144 145
Stormwater Utility 3 5 4 43
Total 1519 1523 1558 1585 1,563
*Auxiliary fire fighter program on hold due to COVID-19 *Non-Sworn includes Police Officer 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
185
ATTACHMENT A 1799
2022 2021 2020 2019 2018
General government:

Building permits issued 7,714 8,815 7,378 7,380 7,538
Business tax certificates:

Retail sales and service 5,109 6,434 7,805 5,707 4,786
Rental Properties - Commercial and Residential 2,495 4,267 4,491 4,165 4,062 Wholesale 319 443 393 404 387
Manufacturers and processors 121 152 149 159 139
Professions 1,289 1,760 1,561 1,614 1,614
Miscellaneous contractors, peddlers, delivery vehicles, etc. 5,219 5,640 4,900 4,579 6,419 Improvement district and hotel/motel room tax 40
Utility billing/customer service:

Utility bills issued 1,040,607 1,186,454 1,000,452 1,051,220 1,169,160 Utility accounts opened and closed 19,933 46,905 17,582 20,818 23,828 New service locations (water) added 411 378 283 245 185 Delinquency Notices Sent - Active Accounts - 75,687 - 82,303 82,660 Water Service Terminated for Non-Payment - 3,055 - 4,989 4,921 Utility customer service calls received 59,951 49,999 45,231 54,695 54,613 Utility customers using automated voice response 678,091 802,378 709,134 849,706 895,369 Utility Customers Using Online Pmt/Account Access 32,850 44,467 32,852 32,893 32,960 Miscellaneous accounts receivable bills issued 10,005 14,770 14,024 37,057 35,880 Public safety:

Police:

Major reported crimes 12,250 12,548 15,654 17,233 15,613 Total arrests 12,915 8,272 11,152 10,945 11,543
Dispatched calls for service 204,270 207,355 176,311 183,834 186,795 Fire:

Interior structure fire calls 332 293 398 364 338
Non-structural fire calls 2,616 3,895 5,719 3,254 3,022 Hazardous materials calls 252 301 593 331 259
Emergency medical calls 19,557 18,485 34,287 26,129 27,105 Total emergency calls 46,756 51,515 57,396 51,613 47,179 Total number of units dispatched 57,198 54,470 60,162 61,026 50,614 Public works:

Miles of streets resurfaced 26 22 28 7 6
Fleet job orders completed 5,725 6,617 7,764 8,765 9,937 City of Stockton
Table 20
Operating Indicators by Function/Program/Department
Last Five Fiscal Years
Fiscal Year
186
ATTACHMENT A 1800
2022 2021 2020 2019 2018
Library:

Registered borrowers 145,990 155,999 152,726 175,374 197,830 Circulation of library materials 1,021,233 576,605 943,196 1,356,142 1,359,790 Reference, research and informational questions answered 61,020 43,122 70,583 104,670 143,396 Annual attendance at libraries 425,695 120,679 578,193 793,255 761,815 Number of programs offered 1,719 246 3,110 4,416 4,171
Annual attendance at programs 38,640 5,831 60,066 94,216 92,521 Parks and Recreation:

Golf rounds:

Swenson Park golf course 59,076 79,968 65,489 50,290 52,502 Van Buskirk golf course 1,904 - 9,990 13,765
Trees planted 106 20 3 7 10
Heritage tree removal-permits issued - 9 5 -
After school program registration (number of participants) 11,558 471 16,153 21,728 14,382 Day camp participants 2,703 444 2,753 3,685 5,062
Instructional classes 2,036 1,781 - 2,986 6,569
Softball/baseball diamonds bookings 169 41 142 147 142
Showmobile (Mobile Stage) bookings 15 1 15 17 14
Community center bookings 423 - 636 635 1,029
Picnic facility bookings 305 7 172 306 272
Adult sports (number of teams):

Softball 153 45 57 101 191
Basketball 63 - 16 23 5
Volleyball 9 - - - 6
Youth sports (basketball, track, soccer, baseball, volleyball, flag football) (number of participants) 1,397 375 1,351 2,997 2,920 City of Stockton
Table 20
Operating Indicators by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
187
ATTACHMENT A 1801
2022 2021 2020 2019 2018
Parks and Recreation (Cont.):

Admissions to:

Pixie Woods 14,235 973 8,995 15,480 13,000
Senior Center memberships 1,131 1,075 - 615 744
Civic Auditorium bookings 120 66 116 133 228
Parks and Recreation sponsored events 5 1 15 22 10
Weber Point Events Center bookings 16 1 15 15 20
Economic Development: (1)
Rental Housing Units 105 - 127 51 -
Owner Housing (Emergency Repair or Rehabilitation) 1 2 2 5 2 Down Payment Assistance - - - 3 -
Special Needs (Homes Repaired or Rehabilitated) - - - 2 5 Public Facilities (Rehabilitated or Constructed) 1 - 5 1 2 Façade Program (Commercial Façade Repair/Rehabilitated) 1 2 2 1 5 Public Services Provided 712 83,553 47,605 23,760 129,584 Homeless Services Provided 7,040 4,806 5,413 4,859 4,464 Meals Provided to Homeless 249,455 126,408 41,882 39,848 23,541 Jobs Created and/or Retained - 1 2 - 5
Business Assisted (Entrepreneur Program) 175 157 229 292 475 Water utility:

New connections (DUE's) (2) 473 589 105 221 422
Water main breaks 26 18 15 21 15
Wastewater utility:

Average daily influent (million gallons per day) 25mgd 25mgd 27 mgd 30 mgd 30 mgd 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. 188
ATTACHMENT A 1802
2022 2021 2020 2019 2018
General government:

Land use-square miles:

Residential 22 24 25 25 25
Mixed use 4 4 4 44
Commercial 5 4 4 44
Industrial 13 14 13 13 13
Institutional 6 4 4 44
All other uses 4 3 3 33
Total square miles 54 53 53 53 53
Public safety:

Police:

Facilities:

Stations and substations 1 1 1 11
Animal control facility 1 1 1 11
Police training facility (pistol range) 1 1 1 11
Vehicles:

Marked patrol cars 153 181 212 192 217
Motorcycles and scooters 27 27 27 32 30
Animal control vehicles 12 11 9 8 8
VIPS vehicles 6 5 6 77
Other automobiles 158 198 213 231 208
Other mobile units (all others) 24 24 15 22 22
Public area security cameras 372 356 356 345 338
Fire:

Fire stations 12 12 12 12 12
Training facilities 1 1 1 11
Fire hydrants 9302 9220 9177 9218 9,080
Public works:

Miles of streets 781 781 769 769 769
Traffic signals 317 316 316 310 307
Street light fixtures 19,296 19,279 19,279 19,208 19,137 City of Stockton
Table 21
Capital Asset Statistics by Function/Program/Department Last Five Fiscal Years
Fiscal Year
189
ATTACHMENT A 1803
2022 2021 2020 2019 2018
Parks and recreation:

Arena 1 1 1 11
Ballpark 1 1 1 11
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 11
Civic Auditorium (2,800 capacity) 1 1 1 11
Community centers 5 5 5 55
Dog Areas 3 3 3 33
Family camps 1 1 1 11
Golf course acreage 371 371 371 371 371
Group picnic areas 31 31 31 31 31
Gymnasium 5 5 5 55
Ice rink 1 1 1 11
Municipal golf courses 2 3 3 33
Park acreage 625 625 625 625 625
Parks and squares 67 67 67 67 67
Philomathean Club 1 1 1 11
Playgrounds 63 63 71 71 71
Senior center 1 1 1 11
Showmobile (Mobile Stage) 1 1 1 11
Skateboard park 1 1 1 11
Swimming pools 7 7 7 77
Teen Center 1 1 1 11
Tennis courts 67 67 67 67 67
Theater (Bob Hope) 1 1 1 11
Weber Point Events Center 1 1 1 11
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
190
ATTACHMENT A 1804
2022 2021 2020 2019 2018
Library:

City branches 8 8 8 7 6
Library mobile units 2 2 2 2 2
San Joaquin County branches 8 8 8 8 8
Total items in collection 655,305 704,864 875,434 772,206 856,101 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
Microform readers/printers 6 6 7 7 7
Self check out machines 21 21 22 24 28
Water utility:

Water main lines (miles) 702 702 702 668 668
Storage capacity (thousand gallons) 26,200 26,200 26,200 26,200 26,200 Water wells (active) 19 20 20 20 21
Water reservoirs 8 8 8 8 8
Wastewater utility:

Wastewater main lines (miles) 921 919 887 883 899
Treatment capacity (million gals/day) 55 55 55 55 55
Wastewater pump stations 28 28 27 27 27
Stormwater utility:

Stormwater main drain lines (miles) 628 627 627 626 626 Stormwater pump stations 75 73 73 73 74
Parking Authority:

Parking spaces 5,179 5,440 5,440 5,440 5,396
Parking lots & garages 21 21 21 21 20
City of Stockton
Source: City of Stockton Departments
Capital Asset Statistics by Function/Program/Department (Continued) Last Five Fiscal Years
Fiscal Year
Table 21
191
ATTACHMENT A 1805
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192
ATTACHMENT A 1806

CITY OF STOCKTON
Presentation to the City CouncilFor the Fiscal Year Ended June 30, 2022February 7, 2023City Council MeetingAgenda Item 15.4 1807
2 CONTENTS
• Scope of Work • Required Communications (AU-C 260)• Audit Results• Thank You! 2/7/2023
1808
3 SCOPE OF WORK
2/7/2023
1809
4 SCOPE OF WORK
• Audit of the Annual Comprehensive Financial Report • Report on internal control over financial reporting and on compliance in accordance with Government Auditing Standards
2/7/2023
1810
5 OUR RESPONSIBILITY IN ACCORDANCE WITH PROFESSIONAL STANDARDS• Form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. • Our responsibility is to plan and perform the audit to obtain “reasonable” assurance (not “absolute” assurance) about whether the financial statements are free of material misstatements. • Exercise professional judgment and maintain professional skepticism throughout the audit. • We considered internal control over financial reporting. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. • Communicate with those charged with governance.
2/7/2023
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6 REQUIRED COMMUNICATIONS (AU-C 260)
2/7/2023
1812
7 REQUIRED COMMUNICATIONS (AU-C 260)
2/7/2023
• Ethics and Independence
• Complied with ALL relevant ethical requirements regarding independence • Significant Accounting Policies
• The City disclosed all significant accounting policies in Note 1 to the financial statements.• The City implemented GASB Statement No. 87, Leases • Significant Estimates
• Investment Fair Market Value• Depreciation and Amortization on Capital Assets and Lease Assets (Right-to-Use Assets)• Lease receivable• Lease payable• Net Pension Liability 1813
8 REQUIRED COMMUNICATIONS (AU-C 260)
2/7/2023
• Sensitive Disclosures
• Note 1 – Summary of Significant Accounting Policies• Note 4 – Lease Receivable• Note 12 – Retirement Plans• Note 15 – Individual Fund Disclosures• Note 16 – Commitments and Contingencies• Note 19 – Prior Period Adjustments • Misstatements
• There were no uncorrected misstatement reported.
• Consultation with Other Accountants
• Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters.
1814
9 REQUIRED COMMUNICATIONS (AU-C 260)
2/7/2023
• Significant Difficulties
• We encountered no significant difficulties in dealing with management. • Disagreement with Management
• We did not have any disagreement with management in terms of accounting treatments nor audit procedures performed.
1815
10 OVERVIEW OF THE FINANCIAL STATEMENTS AND FINANCIAL INDICATORS 2/7/2023
1816
11 City of Stockton
Government-Wide Statement of Net Position
June 30, 2022
2/7/2023
Governmental Business-Type
Activities Activities Total
Assets $ 1,759,213,000 $ 1,088,686,000 $ 2,847,899,000
Deferred Outflows of Resources 59,815,000 16,635,000 76,450,000 Liabilities 537,706,000 434,001,000 971,707,000Deferred Inflows of Resources 164,155,000 6,432,000 170,587,000 Net Position:

Net investment in capital assets 764,271,000 438,675,000 1,202,946,000 Restricted 524,406,000 25,394,000 549,800,000
Unrestricted (deficit) (171,510,000) 200,819,000 29,309,000 Total Net Position $ 1,117,167,000 $ 664,888,000 $ 1,782,055,000 1817
12 City of Stockton
Government-Wide Statement of Activities
For the Year Ended June 30, 2022
2/7/2023
Governmental Business-Type
Activities Activities Total
Program Revenues:

Charges for Services 72,491,000 $ 156,777,000 $ 229,268,000 $ Operating Grants and Contributions 100,879,000 2,499,000 103,378,000 Capital Grants and Contributions 47,352,000 12,231,000 59,583,000 Total Program Revenues 171,507,000 220,722,000 392,229,000 Expenses 321,619,000 135,873,000 457,492,000Net Cost of Services (100,897,000) 35,634,000 (65,263,000) General Revenues (Loss) 289,018,000 (7,018,000) 282,000,000Transfers 438,000 (438,000) - Changes in Net Position $ 188,559,000 $ 28,178,000 $ 216,737,000 1818
13 City of Stockton
General Fund Summary
Fund Balance
June 30, 2022 and 2021
2/7/2023
2022 2021 Change
Fund Balance:

Nonspendable $ 2,077,000 $ 2,215,000 $ (138,000)
Restricted 5,289,000 5,385,000 (96,000)Committed 123,754,000 77,638,000 46,116,000 Assigned 4,285,000 4,526,000 (241,000)
Unassigned 43,208,000 41,093,000 2,115,000
Total Fund Balance $ 178,613,000 $ 130,857,000 $ 47,756,000 1819
14 City of Stockton
General Fund Summary
Revenues, Expenditures and Changes in Fund Balance
For the Years Ended June 30, 2022 and 2021
2/7/2023
2022 2021 Change
Revenues $ 303,970,000 $ 286,396,000 $ 17,574,000Expenditures (244,157,000) (238,195,000) (5,962,000)Revenues over Expenditures 59,813,000 48,201,000 11,612,000 Other Financing Uses (12,056,000) (31,955,000) 19,899,000 Change in Fund Balance $ 47,757,000 $ 16,246,000 $ 31,511,000 1820
15 FINANCIAL AUDIT RESULTS
2/7/2023
1821
16 AUDIT RESULTS
• Unmodified Opinion
• Financial Statements are fairly presented in all material respects• Significant accounting policies have been consistently applied• Estimates are reasonable• Disclosures are properly reflected in the financial statements • AU-C 265, Communicating Internal Control Related Matters Identified in an Audit
• 2022-001 Internal Control Over Financial Reporting
• Prior Period Adjustments• Stale Receivable and Payable 2/7/2023
1822

HQ - ORANGE COUNTY
200 E. Sandpointe AvenueSuite 600Santa Ana, CA 92707
SAN DIEGO4365 Executive DriveSuite 710San Diego, CA 92121 BAY AREA2121 North California Blvd.Suite 290Walnut Creek, CA 94596 LAS VEGAS1050 Indigo DriveSuite 110Las Vegas, NV 89145
PHOENIX4742 North 24th StreetSuite 300Phoenix, AZ 85016 1823
City of Stockton
Legislation Text
File #: 23-0003, Version: 1

ADOPT A RESOLUTION TO AMEND THE CITY OF STOCKTON FEE SCHEDULE TO ALIGN

WITH STATE MANDATED LIMITS FOR SOLAR PERMIT FEES

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve an amendment of the Fiscal Year 2022-23 Fee Schedule to adjust the rates collected for Solar Photovoltaic Fees to comply with state law.

2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Summary
During the Community Development Department’s (CDD) process of implementing the new fee rates approved by Council in the FY 2022-23 Fee Schedule, staff discovered that:

1. In 2018 the State of California reduced the maximum fee that local agencies can charge for residential solar installations. Staff determined that 80 permits that had been charged $50 more than the maximum amount allowed by the state.

2. The 4.5% increase to all CDD permits adopted by the FY 2022-23 Fee Schedule would have made fees for certain solar projects non-compliant with the State-set maximums.

Upon consultation with the City Attorney, staff determined that the State mandated limits preempt the local agency fee amounts. As a result, staff immediately adjusted the amount being collected to align with the State-mandated limits.

Staff is in the process of issuing refunds on the 80 overcharged permits. The proposed resolution to update the Fee Schedule will bring Stockton’s Fee Schedule into compliance with the State-set limits to these permits and will match the rates currently being collected by CDD.

The proposed fee adjustments impact large Residential projects and Commercial projects, which combined account for only 3% of Stockton’s total solar permit volume. The other 97% of Stockton’s Solar permit volume is for Residential projects under 15 kw in size which will be unaffected by this action.

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File #: 23-0003, Version: 1

DISCUSSION
Background
Effective January 1, 2018, California Government Code Section 66015 set limits on certain solar permit fees that local agencies may charge for new solar projects. As of that date, the maximum allowed rate for residential projects was decreased $50 from $500 to $450 for projects up to 15kw (Assembly Bill 1414, approved on October 15, 2017)
This change to the Government Code was not realized by staff until July 2022, after the FY 2022-23 Fee Schedule was adopted, but before the adopted fee changes went into effect on August 21, 2022.

Upon detailed review by staff, 80 permits were previously charged a fee above the State of California’s maximum allowable fee by $50 each.

Staff verified City of Stockton’s Commercial solar fee rates and confirmed the rates were set at the maximum allowed by the State mandated limits through August 20, 2022. However, Council’s recent approval of CDD’s FY 2022-23 4.5% increase to all fees raised these fees above this threshold. The issue was caught prior to the fee schedule changes going into effect on August 21, 2022 and staff has not been collecting more than the maximum rate that the State of California allows. Staff’s recommended Fee Schedule amendment action also includes updates to all Commercial solar project fee rates, bringing them back into alignment with state set limits (Attachment A - Proposed Solar Fee Schedule Change - Redline Version).

Present Situation
Upon becoming aware of this discrepancy, with advisement from the City Attorney, CDD staff immediately began collecting fee rates that are compliant with the State-imposed maximums. Staff is in the process of issuing refunds to the 80 Residential permits that were charged $50 over the maximum allowable amount.

The proposed Resolution will update the City’s Fee Schedule to comply with the State of California’s maximum allowable fee rates. Therefore, it is recommended that Council adopt a resolution to approve an amendment of the Fiscal Year 2022-23 Fee Schedule to adjust the rates collected for Solar Photovoltaic Fees to comply with state law.

PUBLIC NOTICE
A Public Notice of this hearing was published in The Record on January 27th, 2023.

FINANCIAL SUMMARY
The requested action would adjust the fees in the City of Stockton FY 2022-23 Adopted Fee Schedule according to the following table:

Solar/Photovoltaic Fee FY 2022-23
Adopted Fee
Schedule Rate
Proposed Rate Increase
(Decrease)
Residential (below 15 kw) $314 $314 -
Residential (above 15 kw) $523+$15 per kw
above 15kw
$450+$15 per kw
above 15kw
($73)
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File #: 23-0003, Version: 1
Solar/Photovoltaic Fee FY 2022-23
Adopted Fee
Schedule Rate
Proposed Rate Increase
(Decrease)
Residential (below 15 kw) $314 $314 -
Residential (above 15 kw) $523+$15 per kw
above 15kw
$450+$15 per kw
above 15kw
($73)
Commercial (50 kw or less) $1,045 $1,000 ($45)
Commercial (50 kw-250 kw) $1,045+$7 per kw
above 50kw
$1,000+$7 per kw
above 50kw
($45)
Commercial (More than 250 kw) $2,508+$5 per kw
above 250kw
$2,400+$5 per kw
above 250kw
($108)
The refunding of the 80 Residential permits of the $50 that they were overcharged will result in a total amount of $4,000 paid from the Construction Permits Revenue account, which is the same account the fees were originally deposited into.

Based on the amount of the requested fee adjustments and the low volume of impacted permits, CDD staff do not anticipate a material impact to the Department’s fee revenue.

Attachment A - Proposed Solar Fee Schedule Change - Redline Version City of Stockton Page 3 of 3 Printed on 2/2/2023
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Community Development Department
Miscellaneous Fees (CDD)
(209) 937-8561
FY 2022-23 Adopted Fee Schedule
Account # Effective
Date
Description Amount
8/21/2022 $183.00
8/21/2022 $314.00
8/21/2022 $183.00
8/21/2022
8/21/2022
8/21/2022
HVAC - Commercial & Residential Residential Minor
Remodel
Re-Roof
Water Heater
Solar Photovoltaic - Residential (15 kw or less) Solar
Photovoltaic - Residential (above 15 kw)
$78.50
$314.00
8/21/2022
8/21/2022
$523 $450 + $15 per kw above 15
kw
$1,045.00 $1,000.00
$1045 $1,000 + $7 per kw above 50kw
8/21/2022 $2508 $2,400+ $5 per kw
above 250kw
8/21/2022
8/21/2022
8/21/2022
8/21/2022
8/21/2022
8/21/2022
.0015 of Permit Valuation

0.075 of Permit Fee
.001 of Permit Valuation

0.06 of Permit Fee
See "Administrative Services"
$85.00
8/21/2022 $626.00
8/21/2022 $311.00
8/21/2022 $311.00
8/21/2022 $97.25
Non-Valuation Based Fees
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
Special Fees
5520-000-445027-220-221-10-55-521002
5510-000-445009-220-221-10-55-511004
5530-000-445029-220-221-20-55-531003
5530-000-445008-220-221-20-55-531004
5510-000-470001-220-221-10-55-511002
5530-000-470007-220-221-20-55-531005
Certificate of Occupancy Fees
5530-000-420013-220-221-20-55-531002
Demolition
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
5530-000-420013-220-221-20-55-531002
Fire Damage Initial Inspection
5530-000-420013-220-221-20-55-531002 8/21/2022 $97.25
Green Building Standards Fee (Pass Through)
0000-000-220040-780-000-00-00-806102 7/1/2022 $1.00
0000-000-220040-780-000-00-00-806102 7/1/2022
Solar Photovoltaic - Commercial (50 kw or less)
Solar Photovoltaic - Commercial (50 kw - 250 kw)
Solar Photovoltaic - Commercial (More than 250 kw)
General Plan Maintenance and Implementation Technology Fee Building
Capital Preservation Fee
Community Rating System Admin Fee
Refund Processing Fee (1)
Plan Copy Authorization Processing Fee
Temporary Certificate of Occupancy
Demolition - Single Family Residence, Garage, Accessory Building Demolition - Multiple Family Residence/Commercial, Garage, Accessory Building
Demolition - Swimming Pool, Shed
Fire Damage Initial Inspection
Valuation between $1 - $25,000
Valuation between $25,001 - $50,000 $2.00
ATTACHMENT A City of Stockton F - 1 FY 2022-23 Adopted Fee Schedule ____
________
_____
_____
1827
Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION APPROVING THE AMENDMENT TO THE FISCAL YEAR 2022-2023

FEE SCHEDULE RELATED TO THE REDUCTION OF SOLAR PERMIT FEES TO

ALIGN WITH STATE MANDATED LIMITS
On June 21, 2022, the City Council of the City of Stockton adopted Resolution Number 2022-06-21-1601 adopting the 2022-23 Fee Schedule, that became effective on August 21, 2022; and
At the time of approval, staff was unaware that on January 1, 2018, Assembly Bill 1414 amended California Government Code section 66015 which sets limits on the solar permit fees that local agencies may charge for new solar projects. As of that date, the maximum allowed rate for residential projects was decreased $50 from $500 to $450 for residential projects up to 15kw, and the 4.5% fee increase adopted by City Council on June 21, 2022 resulted in fees for certain commercial solar projects being non-compliant with State-set maximums. The requested amendments include updates to commercial fees compliant with state law; and
Upon becoming aware of the residential fee discrepancy, with advisement from the City Attorney, staff immediately began collecting fees at rates compliant with the Stateimposed maximums; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council approves the amendment of Fiscal Year (FY) 2022-23 Fee Schedule to update the affected solar/photovoltaic building permit fee rates in accordance with State-imposed maximum rates, commencing on February 8, 2023, attached as Exhibit 1 and incorporated by reference.

2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED February 7, 2023 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
1828
Community Development Department
Miscellaneous Fees (CDD)
(209) 937-8561
FY 2022-23 Adopted Fee Schedule
Account # Effective
Date
Description Amount
Non-Valuation Based Fees
5530-000-420013-220-221-20-55-531002 8/21/2022 HVAC - Commercial & Residential $183.00 5530-000-420013-220-221-20-55-531002 8/21/2022 Residential Minor Remodel $314.00 5530-000-420013-220-221-20-55-531002 8/21/2022 Re-Roof $183.00 5530-000-420013-220-221-20-55-531002 8/21/2022 Water Heater 5530-000-420013-220-221-20-55-531002 8/21/2022 Solar Photovoltaic - Residential (15 kw or less) 5530-000-420013-220-221-20-55-531002 8/21/2022 Solar Photovoltaic - Residential (above 15 kw) $78.50
$314.00
$450 + $15 per kw above 15
5530-000-420013-220-221-20-55-531002 8/21/2022 Solar Photovoltaic - Commercial (50 kw or less) 5530-000-420013-220-221-20-55-531002 8/21/2022 Solar Photovoltaic - Commercial (50 kw - 250 kw)
kw
$1,000.00
$1000 + $7 per kw above 50
5530-000-420013-220-221-20-55-531002 8/21/2022 Solar Photovoltaic - Commercial (More than 250 kw)
kw
$2400 + $5 per kw above 250
kw
Special Fees
5520-000-445027-220-221-10-55-521002 8/21/2022 General Plan Maintenance and Implementation .0015 of Permit Valuation 5510-000-445009-220-221-10-55-511004 8/21/2022 Technology Fee - Building 0.075 of Permit Fee 5530-000-445029-220-221-20-55-531003 8/21/2022 Capital Preservation Fee .001 of Permit Valuation 5530-000-445008-220-221-20-55-531004 8/21/2022 Community Rating System Admin Fee 0.06 of Permit Fee 5510-000-470001-220-221-10-55-511002 8/21/2022 Refund Processing Fee (1) See "Administrative Services" 5530-000-470007-220-221-20-55-000-000-
531005
8/21/2022 Plan Copy Authorization Processing Fee $85.00 Certificate of Occupancy Fees
5530-000-420013-220-221-20-55-531002 8/21/2022 Temporary Certificate of Occupancy $626.00 Demolition
5530-000-420013-220-221-20-55-531002 8/21/2022 Demolition - Single Family Residence, Garage, Accessory Building
$311.00
5530-000-420013-220-221-20-55-531002 8/21/2022 Demolition - Multiple Family Residence/Commercial, Garage, Accessory
Building
$311.00
5530-000-420013-220-221-20-55-531002 8/21/2022 Demolition - Swimming Pool, Shed $97.25 Fire Damage Initial Inspection
5530-000-420013-220-221-20-55-531002 8/21/2022 Fire Damage Initial Inspection $97.25 Green Building Standards Fee (Pass Through)
0000-000-220040-780-000-00-00-806102 7/1/2022 Valuation between $1 - $25,000 $1.00 0000-000-220040-780-000-00-00-806102 7/1/2022 Valuation between $25,001 - $50,000 $2.00 City of Stockton F - 12 FY 2022-23 Adopted Fee Schedule EXHIBIT 1 1829

COMMUNITY DEVELOPMENT DEPARTMENT
Fee Schedule Amendment for Solar Permit Fee Rates
City Council Meeting
February 07, 2023
Public Hearing
Agenda Item 16.1
1830
Background
2018 State
Reduced
Maximum Fee by
$50
80 Permits
Overcharged by
$50 Each
1831
Current Status
Refunds in
Progress: 80
Permits x $50 =
$4,000 Total
Requested Action
will Amend City
Fee Schedule to
Align with State
Mandated
Maximums
Immediately
Corrected Upon
Discovery
1832
Recommendations

1. Approve an amendment of the Fiscal Year 2022-23 Fee Schedule to adjust the rates collected for Solar Photovoltaic Fees to comply with state law.

2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this Resolution. 1833